FlexShares Trust

N-CSRS 1 d177725dncsrs.htm FLEXSHARES TRUST FlexShares Trust

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:

Peter K. Ewing

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: (800) 595-9111

Date of fiscal year end: October 31

Date of reporting period: April 30, 2016

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).

LOGO

FlexShares^® Trust

Semiannual Report

April 30, 2016

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^® 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

LOGO

Table of Contents



Statements of Assets and Liabilities			2

Statements of Operations			8

Statements of Changes in Net Assets			14

Financial Highlights			26

Schedules of Investments			34
FlexShares^® Morningstar US Market Factor Tilt Index Fund			34
FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund			68
FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund			110
FlexShares^® Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund			151
FlexShares^® Currency Hedged Morningstar EM Factor Tilt Index Fund			152
FlexShares^® US Quality Large Cap Index Fund			154
FlexShares^® Morningstar Global Upstream Natural Resources Index Fund			158
FlexShares^® STOXX^® Global Broad Infrastructure Index Fund			165
FlexShares^® Global Quality Real Estate Index Fund			172
FlexShares^® Real Assets Allocation Index Fund			178
FlexShares^® Quality Dividend Index Fund			179
FlexShares^® Quality Dividend Defensive Index Fund			186
FlexShares^® Quality Dividend Dynamic Index Fund			192
FlexShares^® International Quality Dividend Index Fund			197
FlexShares^® International Quality Dividend Defensive Index Fund			204
FlexShares^® International Quality Dividend Dynamic Index Fund			211
FlexShares^® iBoxx 3-Year Target Duration TIPS Index Fund			218
FlexShares^® iBoxx 5-Year Target Duration TIPS Index Fund			219
FlexShares^® Disciplined Duration MBS Index Fund			220
FlexShares^® Credit-Scored US Corporate Bond Index Fund			223
FlexShares^® Credit-Scored US Long Corporate Bond Index Fund			230
FlexShares^® Ready Access Variable Income Fund			236

Notes to the Financial Statements			242

Fund Expenses			284

Supplemental Information			287

For More Information			293

LOGO

FlexShares^® Trust

Statements of Assets and Liabilities April 30, 2016 (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	$	577,383,581		$	626,392,312		$	264,031,884		$	—
Affiliate securities, at cost		350,995			—			—			2,924,969
Repurchase Agreements, at cost		—			—			—			—
Securities Lending Reinvestments, at cost		159,397,822			22,237,381			1,596,788			—

Securities, at value		738,627,570			610,366,552			257,982,946			—
Affiliate securities, at value		437,853			—			—			2,889,466
Repurchase Agreements, at value		—			—			—			—
Securities Lending Reinvestments, at value		159,405,965			22,237,590			1,596,788			—
Cash		7,998,855			1,042,215			245,941			767
Cash segregated at broker*		2,951,447			714,476			85,772			—
Foreign cash†		—			1,563,715			1,880,723			—
Restricted cash**		—			272,051			—			—
Unrealized appreciation on forward foreign currency contracts		—			157,967			8,323			1,619
Receivables:
Dividends and interest		636,968			4,003,992			274,862			—
Securities lending income		48,007			90,983			6,443			—
Capital shares issued		—			—			—			—
Investment adviser		34,953			23,522			11,018			549
Securities sold		281,003			35,700			30,622			—
Variation margin		353,020			—			100,368			—
Other		—			2			—			—

Total Assets		910,775,641			640,508,765			262,223,806			2,892,401


LIABILITIES
Unrealized depreciation on forward foreign currency contracts		—			129,030			5,428			48,947
Payables:
Collateral received from securities loaned		159,364,590			22,236,682			1,596,788			—
Deferred compensation (Note 7)		31,000			20,153			9,174			20
Investment advisory fees (Note 4)		164,941			196,360			137,299			109
Trustee fees (Note 7)		3,953			3,369			1,844			529
Securities purchased		—			299,130			—			—
Deferred India capital gains tax		—			—			—			—
Due to Authorized Participant		—			272,051			—			—
Variation margin		—			140,589			—			—
Other		1,500			40,000			24,656			—

Total Liabilities		159,565,984			23,337,364			1,775,189			49,605

Net Assets	$	751,209,657		$	617,171,401		$	260,448,617		$	2,842,796


NET ASSETS CONSIST OF:
Paid-in capital	$	608,495,222		$	664,045,395		$	292,486,180		$	3,064,470
Undistributed (accumulated) net investment income (loss)		1,704,980			3,185,154			48,268			(159	)
Undistributed (accumulated) net realized gain (loss) on investments and foreign currency transactions		(20,750,055	)		(34,165,430	)		(26,182,801	)		(138,684	)
Net unrealized appreciation (depreciation) on:
Investments		161,330,847			(16,025,760	)		(6,048,938	)		(35,503	)
Securities lending		8,143			209			—			—
Futures contracts		420,520			(13,813	)		110,648			—
Forward foreign currency contracts and foreign currency translations		—			145,646			35,260			(47,328	)

Net Assets	$	751,209,657		$	617,171,401		$	260,448,617		$	2,842,796


Shares Outstanding (unlimited number of shares authorized $0.0001 par value)		8,800,001			11,000,001			5,900,001			125,001
Net Asset Value	$	85.36		$	56.11		$	44.14		$	22.74

† Cost of foreign cash	$	—		$	1,517,230		$	1,849,203		$	—

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

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

See Accompanying Notes to the Financial Statements.


2		FLEXSHARES SEMIANNUAL REPORT

Statements of Assets and Liabilities (cont.)


	FlexShares^® Currency Hedged Morningstar EM Factor Tilt Index Fund			FlexShares^® US Quality Large Cap Index Fund		FlexShares^® Morningstar Global Upstream Natural Resources Index Fund			FlexShares^® STOXX^® Global Broad Infrastructure Index Fund

ASSETS
Securities, at cost	$	—		$	3,800,397	$	2,279,980,946		$	588,598,272
Affiliate securities, at cost		24,386,467			—		—			—
Repurchase Agreements, at cost		—			—		—			—
Securities Lending Reinvestments, at cost		—			—		139,349,936			40,909,542

Securities, at value		—			3,851,649		1,891,515,435			616,356,603
Affiliate securities, at value		27,373,419			—		—			—
Repurchase Agreements, at value		—			—		—			—
Securities Lending Reinvestments, at value		—			—		139,354,462			40,912,222
Cash		2,018			4,489		3,273,137			1,789,534
Cash segregated at broker*		—			—		1,978,777			479,061
Foreign cash†		—			—		9,661,211			2,227,629
Restricted cash**		—			—		57,168			3,150	⁽¹⁾
Unrealized appreciation on forward foreign currency contracts		12,442			—		174,036			119,337
Receivables:
Dividends and interest		—			3,289		5,787,674			1,585,060
Securities lending income		—			—		145,916			26,664
Capital shares issued		—			—		2,027,938			—
Investment adviser		718			573		131,044			13,821
Securities sold		—			—		1,455			—
Variation margin		—			—		584,870			23,711
Other		—			—		—			—

Total Assets		27,388,597			3,860,000		2,054,693,123			663,536,792


LIABILITIES
Unrealized depreciation on forward foreign currency contracts		229,898			—		295,736			77,534
Payables:
Collateral received from securities loaned		—			—		139,326,422			40,906,610
Deferred compensation (Note 7)		132			40		121,939			10,278
Investment advisory fees (Note 4)		1,084			1,018		694,410			233,866
Trustee fees (Note 7)		586			533		9,105			3,543
Securities purchased		—			—		2,181,275			—
Deferred India capital gains tax		—			—		—			—
Due to Authorized Participant		—			—		57,168			—
Variation margin		—			—		—			—
Other		—			500		48,000			16,000

Total Liabilities		231,700			2,091		142,734,055			41,247,831

Net Assets	$	27,156,897		$	3,857,909	$	1,911,959,068		$	622,288,961


NET ASSETS CONSIST OF:
Paid-in capital	$	25,489,914		$	3,785,576	$	2,636,416,398		$	607,280,035
Undistributed (accumulated) net investment income (loss)		(1,403	)		5,259		4,802,175			1,504,253
Undistributed (accumulated) net realized gain (loss) on investments and foreign currency transactions		(1,101,110	)		15,822		(341,517,232	)		(14,469,402	)
Net unrealized appreciation (depreciation) on:
Investments		2,986,952			51,252		(388,465,511	)		27,758,331
Securities lending		—			—		4,526			2,680
Futures contracts		—			—		608,670			53,368
Forward foreign currency contracts and foreign currency translations		(217,456	)		—		110,042			159,696

Net Assets	$	27,156,897		$	3,857,909	$	1,911,959,068		$	622,288,961


Shares Outstanding (unlimited number of shares authorized $0.0001 par value)		1,125,001			150,001		70,950,001			14,050,001
Net Asset Value	$	24.14		$	25.72	$	26.95		$	44.29

† Cost of foreign cash	$	—		$	—	$	9,353,317		$	2,158,172

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

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

⁽¹⁾

Uninvested cash collateral received for securities on loan in the amount of $3,150.

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			3

Statements of Assets and Liabilities (cont.)


	FlexShares^® Global Quality Real Estate Index Fund			FlexShares^® Real Assets Allocation Index Fund			FlexShares^® Quality Dividend Index Fund			FlexShares^® Quality Dividend Defensive Index Fund

ASSETS
Securities, at cost	$	175,320,099		$	—		$	1,160,688,883		$	191,240,342
Affiliate securities, at cost		—			1,249,795			—			—
Repurchase Agreements, at cost		—			—			—			—
Securities Lending Reinvestments, at cost		17,035,996			—			210,756,793			40,808,844

Securities, at value		190,346,798			—			1,255,720,527			204,953,882
Affiliate securities, at value		—			1,296,823			—			—
Repurchase Agreements, at value		—			—			—			—
Securities Lending Reinvestments, at value		17,036,205			—			210,763,501			40,809,471
Cash		1,246,335			248			8,466,589			890,857
Cash segregated at broker*		289,181			—			793,542			291,205
Foreign cash†		698,614			—			—			—
Restricted cash**		—			—			—			—
Unrealized appreciation on forward foreign currency contracts		15,775			—			—			—
Receivables:
Dividends and interest		500,833			—			1,578,977			233,707
Securities lending income		6,956			—			135,852			24,275
Capital shares issued		614,635			—			3,691,885			—
Investment adviser		4,241			545			27,434			6,436
Securities sold		—			—			—			—
Variation margin		9,353			—			174,319			20,925
Other		—			—			—			—

Total Assets		210,768,926			1,297,616			1,481,352,626			247,230,758


LIABILITIES
Unrealized depreciation on forward foreign currency contracts		24,929			—			—			—
Payables:
Collateral received from securities loaned		17,035,443			—			210,724,143			40,805,451
Deferred compensation (Note 7)		2,782			12			22,889			4,785
Investment advisory fees (Note 4)		69,289			110			364,004			61,252
Trustee fees (Note 7)		1,459			532			4,545			1,651
Securities purchased		607,081			—			3,661,176			—
Deferred India capital gains tax		—			—			—			—
Due to Authorized Participant		—			—			—			—
Variation margin		—			—			—			—
Other		8,939			—			25,750			6,750

Total Liabilities		17,749,922			654			214,802,507			40,879,889

Net Assets	$	193,019,004		$	1,296,962		$	1,266,550,119		$	206,350,869


NET ASSETS CONSIST OF:
Paid-in capital	$	180,259,166		$	1,384,730		$	1,175,339,286		$	193,092,757
Undistributed (accumulated) net investment income (loss)		1,246,096			(151	)		3,636,788			558,458
Undistributed (accumulated) net realized gain (loss) on investments and foreign currency transactions		(3,551,183	)		(134,645	)		(7,676,278	)		(1,049,189	)
Net unrealized appreciation (depreciation) on:
Investments		15,026,699			47,028			95,031,644			13,713,540
Securities lending		209			—			6,708			627
Futures contracts		18,679			—			211,971			34,676
Forward foreign currency contracts and foreign currency translations		19,338			—			—			—

Net Assets	$	193,019,004		$	1,296,962		$	1,266,550,119		$	206,350,869


Shares Outstanding (unlimited number of shares authorized $0.0001 par value)		3,300,001			50,001			34,950,001			5,750,001
Net Asset Value	$	58.49		$	25.94		$	36.24		$	35.89

† Cost of foreign cash	$	670,608		$	—		$	—		$	—

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

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

See Accompanying Notes to the Financial Statements.


4		FLEXSHARES SEMIANNUAL REPORT

Statements of Assets and Liabilities (cont.)


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

ASSETS
Securities, at cost	$	49,611,932		$	372,794,130		$	56,471,059		$	28,872,693
Affiliate securities, at cost		—			—			—			—
Repurchase Agreements, at cost		—			—			—			—
Securities Lending Reinvestments, at cost		8,502,990			13,117,655			2,055,512			653,141

Securities, at value		51,085,751			360,967,352			55,396,976			27,489,659
Affiliate securities, at value		—			—			—			—
Repurchase Agreements, at value		—			—			—			—
Securities Lending Reinvestments, at value		8,502,990			13,117,655			2,055,512			653,141
Cash		384,300			1,565,777			37,605			29,511
Cash segregated at broker*		39,522			474,705			100,100			47,164
Foreign cash†		—			3,163,603			672,810			236,440
Restricted cash**		—			91,181			—			—
Unrealized appreciation on forward foreign currency contracts		—			35,535			8,545			8,647
Receivables:
Dividends and interest		71,481			2,015,508			360,693			157,976
Securities lending income		6,953			102,842			18,080			6,689
Capital shares issued		—			—			—			—
Investment adviser		3,458			12,065			3,098			1,805
Securities sold		—			—			—			—
Variation margin		8,182			—			35,304			14,797
Other		—			—			—			—

Total Assets		60,102,637			381,546,223			58,688,723			28,645,829


LIABILITIES
Unrealized depreciation on forward foreign currency contracts		—			26,242			9,175			7,702
Payables:
Collateral received from securities loaned		8,502,272			13,117,655			2,055,512			653,141
Deferred compensation (Note 7)		2,459			9,656			2,319			1,186
Investment advisory fees (Note 4)		16,125			133,476			21,194			10,411
Trustee fees (Note 7)		999			2,409			779			619
Securities purchased		—			89,927			—			—
Deferred India capital gains tax		—			—			23,511			—
Due to Authorized Participant		—			91,181			—			—
Variation margin		—			23,613			—			—
Other		3,750			20,000			—			10,000

Total Liabilities		8,525,605			13,514,159			2,112,490			683,059

Net Assets	$	51,577,032		$	368,032,064		$	56,576,233		$	27,962,770


NET ASSETS CONSIST OF:
Paid-in capital	$	51,963,576		$	433,151,542		$	71,864,974		$	37,731,136
Undistributed (accumulated) net investment income (loss)		174,371			2,617,654			384,219			123,244
Undistributed (accumulated) net realized gain (loss) on investments and foreign currency transactions		(2,045,380	)		(56,005,164	)		(14,633,271	)		(8,532,952	)
Net unrealized appreciation (depreciation) on:
Investments		1,473,819			(11,826,778	)		(1,097,594	)		(1,383,034	)
Securities lending		—			—			—			—
Futures contracts		10,646			(18,959	)		35,272			15,663
Forward foreign currency contracts and foreign currency translations		—			113,769			22,633			8,713

Net Assets	$	51,577,032		$	368,032,064		$	56,576,233		$	27,962,770


Shares Outstanding (unlimited number of shares authorized $0.0001 par value)		1,500,001			16,200,001			2,500,001			1,200,001
Net Asset Value	$	34.38		$	22.72		$	22.63		$	23.30

† Cost of foreign cash	$	—		$	3,100,799		$	656,105		$	230,042

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

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

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			5

Statements of Assets and Liabilities (cont.)


	FlexShares^® 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

ASSETS
Securities, at cost	$	1,820,391,715		$	507,748,190		$	31,512,271		$	22,335,651
Affiliate securities, at cost		—			—			—			—
Repurchase Agreements, at cost		—			—			—			—
Securities Lending Reinvestments, at cost		—			—			—			—

Securities, at value		1,839,942,536			517,422,217			31,618,666			22,790,815
Affiliate securities, at value		—			—			—			—
Repurchase Agreements, at value		—			—			—			—
Securities Lending Reinvestments, at value		—			—			—			—
Cash		130,362			15,843			1,077,356			320,519
Cash segregated at broker*		—			—			—			—
Foreign cash†		—			—			—			—
Restricted cash**		—			—			—			—
Unrealized appreciation on forward foreign currency contracts		—			—			—			—
Receivables:
Dividends and interest		3,830,607			887,550			95,906			186,916
Securities lending income		—			—			—			—
Capital shares issued		—			8,848,920			1,239,089			—
Investment adviser		118,661			28,920			29,145			892
Securities sold		—			—			129,375			1,485,004
Variation margin		—			—			—			—
Other		—			—			—			—

Total Assets		1,844,022,166			527,203,450			34,189,537			24,784,146


LIABILITIES
Unrealized depreciation on forward foreign currency contracts		—			—			—			—
Payables:
Collateral received from securities loaned		—			—			—			—
Deferred compensation (Note 7)		101,736			28,920			431			249
Investment advisory fees (Note 4)		299,569			80,280			5,061			4,138
Trustee fees (Note 7)		16,925			—			708			643
Securities purchased		—			8,780,395			1,986,165			1,663,290
Deferred India capital gains tax		—			—			—			—
Due to Authorized Participant		—			—			—			—
Variation margin		—			—			—			—
Other		—			—			400			1,000

Total Liabilities		418,230			8,889,595			1,992,765			1,669,320

Net Assets	$	1,843,603,936		$	518,313,855		$	32,196,772		$	23,114,826


NET ASSETS CONSIST OF:
Paid-in capital	$	1,874,207,686		$	519,529,965		$	32,475,672		$	22,589,649
Undistributed (accumulated) net investment income (loss)		(8,634,813	)		(2,006,682	)		(62,302	)		48,666
Undistributed (accumulated) net realized gain (loss) on investments and foreign currency transactions		(41,519,758	)		(8,883,455	)		(322,993	)		21,347
Net unrealized appreciation (depreciation) on:
Investments		19,550,821			9,674,027			106,395			455,164
Securities lending		—			—			—			—
Futures contracts		—			—			—			—
Forward foreign currency contracts and foreign currency translations		—			—			—			—

Net Assets	$	1,843,603,936		$	518,313,855		$	32,196,772		$	23,114,826


Shares Outstanding (unlimited number of shares authorized $0.0001 par value)		74,554,000			20,500,001			1,300,001			450,001
Net Asset Value	$	24.73		$	25.28		$	24.77		$	51.37

† 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.


6		FLEXSHARES SEMIANNUAL REPORT

Statements of Assets and Liabilities (cont.)


	FlexShares^® Credit-Scored US Long Corporate Bond Index Fund		FlexShares^® Ready Access Variable Income Fund

ASSETS
Securities, at cost	$	9,970,816	$	90,060,070
Affiliate securities, at cost		—		—
Repurchase Agreements, at cost		—		6,000,000
Securities Lending Reinvestments, at cost		—		—

Securities, at value		10,458,947		90,190,570
Affiliate securities, at value		—		—
Repurchase Agreements, at value		—		6,000,000
Securities Lending Reinvestments, at value		—		—
Cash		245,261		1,747,048
Cash segregated at broker*		—		—
Foreign cash†		—		—
Restricted cash**		—		—
Unrealized appreciation on forward foreign currency contracts		—		—
Receivables:
Dividends and interest		129,873		200,430
Securities lending income		—		—
Capital shares issued		—		—
Investment adviser		610		4,322
Securities sold		72,201		998,945
Variation margin		—		—
Other		—		—

Total Assets		10,906,892		99,141,315


LIABILITIES
Unrealized depreciation on forward foreign currency contracts		—		—
Payables:
Collateral received from securities loaned		—		—
Deferred compensation (Note 7)		79		3,020
Investment advisory fees (Note 4)		1,593		19,968
Trustee fees (Note 7)		531		1,302
Securities purchased		261,898		998,594
Deferred India capital gains tax		—		—
Due to Authorized Participant		—		—
Variation margin		—		—
Other		1,000		1,050

Total Liabilities		265,101		1,023,934

Net Assets	$	10,641,791	$	98,117,381


NET ASSETS CONSIST OF:
Paid-in capital	$	10,120,974	$	97,943,460
Undistributed (accumulated) net investment income (loss)		30,645		75,452
Undistributed (accumulated) net realized gain (loss) on investments and foreign currency transactions		2,041		(32,031	)
Net unrealized appreciation (depreciation) on:
Investments		488,131		130,500
Securities lending		—		—
Futures contracts		—		—
Forward foreign currency contracts and foreign currency translations		—		—

Net Assets	$	10,641,791	$	98,117,381


Shares Outstanding (unlimited number of shares authorized $0.0001 par value)		200,001		1,300,001
Net Asset Value	$	53.21	$	75.47

† 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

FlexShares^® Trust

Statements of Operations

For the six months or period ended April 30, 2016 (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
	FlexShares^® Morningstar US Market Factor Tilt Index Fund									November 9, 2015* through April 30, 2016

INVESTMENT INCOME
Dividend income	$	8,153,150		$	9,215,257		$	2,145,741		$	—
Dividend income received from affiliate		4,410			—			—			72,129
Interest income		—			—			726			—
Securities lending income (net of fees)		418,146			321,466			28,323			—
Foreign withholding tax on dividends		(975	)		(724,034	)		(184,672	)		—
Foreign withholding tax on interest		—			—			(5	)		—

Total Investment Income		8,574,731			8,812,689			1,990,113			72,129


EXPENSES
Deferred compensation (Note 7)		1,934			1,463			624			2
Investment advisory fees		973,106			1,136,599			707,026			5,545
Trustee fees (Note 7)		27,411			20,952			9,256			1,075

Total Gross Expenses Before Fees Reimbursed		1,002,451			1,159,014			716,906			6,622


Less:
Deferred compensation reimbursed (Note 7)		(1,934	)		(1,463	)		(624	)		(2	)
Investment advisory fees reimbursed (Note 4)		—			—			—			(4,964	)
Trustee fees reimbursed (Note 7)		(27,411	)		(20,952	)		(9,256	)		(1,075	)

Total Net Expenses		973,106			1,136,599			707,026			581

Net Investment Income (Loss)		7,601,625			7,676,090			1,283,087			71,548


NET REALIZED GAIN (LOSS) ON:
Investments in affiliated securities		1,219			—			—			(11,791	)
Investments in securities		(6,734,675	)		(16,869,065	)		(7,449,451	)⁽¹⁾		—
In-kind redemptions on investments in securities		1,787,417			—			—			—
Futures contracts		632,535			(104,022	)		(1,597	)		—
Foreign currency transactions		—			114,283			(131,634	)		(126,893	)
Securities sold short		—			—			—			—

Net Realized Gain (Loss)		(4,313,504	)		(16,858,804	)		(7,582,682	)		(138,684	)


NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON:
Investments in securities		(897,261	)⁽²⁾		7,269,637			12,620,405	⁽³⁾		(35,503	)⁽⁴⁾
Securities lending		8,143			209			—			—
Futures contracts		89,473			(324,897	)		(15,688	)		—
Forward foreign currency contracts		—			41,314			7,597			(47,328	)
Translation of other assets and liabilities denominated in foreign currencies		—			207,333			39,834			—

Net Change in Unrealized Appreciation (Depreciation)		(799,645	)		7,193,596			12,652,148			(82,831	)

Net Realized and Unrealized Gain (Loss)		(5,113,149	)		(9,665,208	)		5,069,466			(221,515	)

Net Increase (Decrease) in Net Assets Resulting from Operations	$	2,488,476		$	(1,989,118	)	$	6,352,553		$	(149,967	)

*	Commencement of investment operations.

⁽¹⁾

Net of India capital gains tax of $29,891.

⁽²⁾

Includes $3,250 change in unrealized appreciation on investments in affiliates.

⁽³⁾

Net of deferred India capital gains tax of $10,456.

⁽⁴⁾

Amount reflects change in unrealized depreciation on investments in affiliates.

See Accompanying Notes to the Financial Statements.


8		FLEXSHARES SEMIANNUAL REPORT

Statements of Operations (cont.)


	FlexShares^® Currency Hedged Morningstar EM Factor Tilt Index Fund			FlexShares^® US Quality Large Cap Index Fund			FlexShares^® Morningstar Global Upstream Natural Resources Index Fund			FlexShares^® STOXX^® Global Broad Infrastructure Index Fund
	November 9, 2015* through April 30, 2016			FlexShares^® US Quality Large Cap Index Fund						FlexShares^® STOXX^® Global Broad Infrastructure Index Fund

INVESTMENT INCOME
Dividend income	$	—		$	33,805		$	26,545,426		$	7,114,724
Dividend income received from affiliate		71,518			—			—			—
Interest income		—			—			—			—
Securities lending income (net of fees)		—			—			606,676			111,525
Foreign withholding tax on dividends		—			—			(1,176,832	)		(249,591	)
Foreign withholding tax on interest		—			—			—			—

Total Investment Income		71,518			33,805			25,975,270			6,976,658


EXPENSES
Deferred compensation (Note 7)		42			11			5,107			1,422
Investment advisory fees		42,408			4,482			4,052,738			1,222,481
Trustee fees (Note 7)		1,377			1,133			63,818			19,195

Total Gross Expenses Before Fees Reimbursed		43,827			5,626			4,121,663			1,243,098


Less:
Deferred compensation reimbursed (Note 7)		(42	)		(11	)		(5,107	)		(1,422	)
Investment advisory fees reimbursed (Note 4)		(39,042	)		—			—			—
Trustee fees reimbursed (Note 7)		(1,377	)		(1,133	)		(63,818	)		(19,195	)

Total Net Expenses		3,366			4,482			4,052,738			1,222,481

Net Investment Income (Loss)		68,152			29,323			21,922,532			5,754,177


NET REALIZED GAIN (LOSS) ON:
Investments in affiliated securities		(64,816	)		—			—			—
Investments in securities		—			17,838			(229,537,786	)		(8,187,341	)
In-kind redemptions on investments in securities		—			—			7,815,531			—
Futures contracts		—			—			1,558,691			(180,352	)
Foreign currency transactions		(1,036,294	)		—			14,181			17,448
Securities sold short		—			—			—			—

Net Realized Gain (Loss)		(1,101,110	)		17,838			(220,149,383	)		(8,350,245	)


NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON:
Investments in securities		2,986,952	⁽¹⁾		(109,851	)		382,576,095			28,430,584
Securities lending		—			—			4,526			2,680
Futures contracts		—			—			42,379			(367,821	)
Forward foreign currency contracts		(217,456	)		—			(224,965	)		(84,115	)
Translation of other assets and liabilities denominated in foreign currencies		—			—			502,836			107,473

Net Change in Unrealized Appreciation (Depreciation)		2,769,496			(109,851	)		382,900,871			28,088,801

Net Realized and Unrealized Gain (Loss)		1,668,386			(92,013	)		162,751,488			19,738,556

Net Increase (Decrease) in Net Assets Resulting from Operations	$	1,736,538		$	(62,690	)	$	184,674,020		$	25,492,733

*	Commencement of investment operations.

⁽¹⁾

Amount reflects change in unrealized appreciation on investments in affiliates.

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			9

Statements of Operations (cont.)


	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^® Global Quality Real Estate Index Fund			November 23, 2015* through April 30, 2016			FlexShares^® Quality Dividend Index Fund			FlexShares^® Quality Dividend Defensive Index Fund

INVESTMENT INCOME
Dividend income	$	3,949,944		$	—		$	16,381,436		$	3,478,545
Dividend income received from affiliate		—			33,488			—			—
Interest income		—			—			—			—
Securities lending income (net of fees)		23,984			—			600,690			113,149
Foreign withholding tax on dividends		(91,420	)		—			(3,520	)		(3,025	)
Foreign withholding tax on interest		—			—			—			—

Total Investment Income		3,882,508			33,488			16,978,606			3,588,669


EXPENSES
Deferred compensation (Note 7)		406			(1	)⁽¹⁾		2,790			502
Investment advisory fees		361,296			4,117			1,654,720			348,848
Trustee fees (Note 7)		6,725			973			31,969			8,264

Total Gross Expenses Before Fees Reimbursed		368,427			5,089			1,689,479			357,614


Less:
Deferred compensation reimbursed (Note 7)		(406	)		1	⁽¹⁾		(2,790	)		(502	)
Investment advisory fees reimbursed (Note 4)		—			(3,361	)		—			—
Trustee fees reimbursed (Note 7)		(6,725	)		(973	)		(31,969	)		(8,264	)

Total Net Expenses		361,296			756			1,654,720			348,848

Net Investment Income (Loss)		3,521,212			32,732			15,323,886			3,239,821


NET REALIZED GAIN (LOSS) ON:
Investments in affiliated securities		—			(688	)		—			—
Investments in securities		(2,986,026	)		—			(5,450,460	)		(1,435,409	)
In-kind redemptions on investments in securities		—			(133,957	)		3,247,468			1,818,088
Futures contracts		17,046			—			170,261			101,345
Foreign currency transactions		6,972			—			—			—
Securities sold short		—			—			—			—

Net Realized Gain (Loss)		(2,962,008	)		(134,645	)		(2,032,731	)		484,024


NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON:
Investments in securities		7,564,007			47,028	⁽²⁾		44,001,978			165,778
Securities lending		209			—			6,708			627
Futures contracts		(68,550	)		—			(47,221	)		(89,788	)
Forward foreign currency contracts		(13,485	)		—			—			—
Translation of other assets and liabilities denominated in foreign currencies		27,824			—			—			—

Net Change in Unrealized Appreciation (Depreciation)		7,510,005			47,028			43,961,465			76,617

Net Realized and Unrealized Gain (Loss)		4,547,997			(87,617	)		41,928,734			560,641

Net Increase (Decrease) in Net Assets Resulting from Operations	$	8,069,209		$	(54,885	)	$	57,252,620		$	3,800,462

*	Commencement of investment operations.

⁽¹⁾

The deferred compensation expense reflects the periodic adjustment of the performance of the investment options selected by the Trustees.

⁽²⁾

Amount reflects change in unrealized appreciation on investments in affiliates.

See Accompanying Notes to the Financial Statements.


10		FLEXSHARES SEMIANNUAL REPORT

Statements of Operations (cont.)


	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

INVESTMENT INCOME
Dividend income	$	1,049,719		$	7,758,247		$	1,345,502		$	496,937
Dividend income received from affiliate		—			—			—			—
Interest income		—			—			—			—
Securities lending income (net of fees)		30,375			250,193			43,221			19,492
Foreign withholding tax on dividends		—			(676,333	)		(110,844	)		(35,321	)
Foreign withholding tax on interest		—			—			—			—

Total Investment Income		1,080,094			7,332,107			1,277,879			481,108


EXPENSES
Deferred compensation (Note 7)		155			1,006			201			61
Investment advisory fees		109,856			828,630			143,284			71,884
Trustee fees (Note 7)		3,670			13,732			3,310			2,298

Total Gross Expenses Before Fees Reimbursed		113,681			843,368			146,795			74,243


Less:
Deferred compensation reimbursed (Note 7)		(155	)		(1,006	)		(201	)		(61	)
Investment advisory fees reimbursed (Note 4)		—			—			—			—
Trustee fees reimbursed (Note 7)		(3,670	)		(13,732	)		(3,310	)		(2,298	)

Total Net Expenses		109,856			828,630			143,284			71,884

Net Investment Income (Loss)		970,238			6,503,477			1,134,595			409,224


NET REALIZED GAIN (LOSS) ON:
Investments in affiliated securities		—			—			—			—
Investments in securities		(1,187,984	)		(28,433,717	)		(5,310,384	)		(2,252,301	)
In-kind redemptions on investments in securities		1,242,821			594,121			(1,432,948	)		(1,391,496	)
Futures contracts		35,668			42,897			(205,684	)		(44,714	)
Foreign currency transactions		—			(70,068	)		5,401			(5,013	)
Securities sold short		—			2,226			—			—

Net Realized Gain (Loss)		90,505			(27,864,541	)		(6,943,615	)		(3,693,524	)


NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON:
Investments in securities		(2,101,812	)		15,362,063			5,058,638	⁽¹⁾		1,710,043
Securities lending		—			—			—			—
Futures contracts		(41,476	)		(145,680	)		63,557			28,738
Forward foreign currency contracts		—			(166,335	)		(61,924	)		(10,548	)
Translation of other assets and liabilities denominated in foreign currencies		—			126,799			24,041			14,346

Net Change in Unrealized Appreciation (Depreciation)		(2,143,288	)		15,176,847			5,084,312			1,742,579

Net Realized and Unrealized Gain (Loss)		(2,052,783	)		(12,687,694	)		(1,859,303	)		(1,950,945	)

Net Increase (Decrease) in Net Assets Resulting from Operations	$	(1,082,545	)	$	(6,184,217	)	$	(724,708	)	$	(1,541,721	)

⁽¹⁾

Net of deferred India capital gains tax of $23,511.

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			11

Statements of Operations (cont.)


	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

INVESTMENT INCOME
Dividend income	$	—		$	—		$	—		$	—
Dividend income received from affiliate		—			—			—			—
Interest income		(6,782,974	)⁽¹⁾		(1,534,968	)⁽¹⁾		267,706			237,035
Securities lending income (net of fees)		—			—			—			—
Foreign withholding tax on dividends		—			—			—			—
Foreign withholding tax on interest		—			—			—			—

Total Investment Income		(6,782,974	)		(1,534,968	)		267,706			237,035


EXPENSES
Deferred compensation (Note 7)		4,660			1,054			66			51
Investment advisory fees		1,851,839			471,714			28,006			19,636
Trustee fees (Note 7)		68,351			20,356			2,062			1,664

Total Gross Expenses Before Fees Reimbursed		1,924,850			493,124			30,134			21,351


Less:
Deferred compensation reimbursed (Note 7)		(4,660	)		(1,054	)		(66	)		(51	)
Investment advisory fees reimbursed (Note 4)		—			—			(28,006	)⁽²⁾		—
Trustee fees reimbursed (Note 7)		(68,351	)		(20,356	)		(2,062	)		(1,664	)

Total Net Expenses		1,851,839			471,714			—			19,636

Net Investment Income (Loss)		(8,634,813	)		(2,006,682	)		267,706			217,399


NET REALIZED GAIN (LOSS) ON:
Investments in affiliated securities		—			—			—			—
Investments in securities		(2,234,461	)		1,666,595			28,643			27,173
In-kind redemptions on investments in securities		(516,868	)		(43,716	)		—			—
Futures contracts		—			—			—			—
Foreign currency transactions		—			—			—			—
Securities sold short		39			—			—			—

Net Realized Gain (Loss)		(2,751,290	)		1,622,879			28,643			27,173


NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON:
Investments in securities		36,958,087			14,226,620			142,664			434,325
Securities lending		—			—			—			—
Futures contracts		—			—			—			—
Forward foreign currency contracts		—			—			—			—
Translation of other assets and liabilities denominated in foreign currencies		—			—			—			—

Net Change in Unrealized Appreciation (Depreciation)		36,958,087			14,226,620			142,664			434,325

Net Realized and Unrealized Gain (Loss)		34,206,797			15,849,499			171,307			461,498

Net Increase (Decrease) in Net Assets Resulting from Operations	$	25,571,984		$	13,842,817		$	439,013		$	678,897

⁽¹⁾

Please refer to the Inflation-Indexed Securities Section within Note 2 to the Financial Statements.

⁽²⁾

Please refer to Note 5 to the Financial Statements.

See Accompanying Notes to the Financial Statements.


12		FLEXSHARES SEMIANNUAL REPORT

Statements of Operations (cont.)


	FlexShares^® Credit-Scored US Long Corporate Bond Index Fund			FlexShares^® Ready Access Variable Income Fund

INVESTMENT INCOME
Dividend income	$	—		$	—
Dividend income received from affiliate		—			—
Interest income		146,702			500,960
Securities lending income (net of fees)		—			1,899
Foreign withholding tax on dividends		—			—
Foreign withholding tax on interest		—			(642	)

Total Investment Income		146,702			502,217


EXPENSES
Deferred compensation (Note 7)		21			245
Investment advisory fees		6,980			120,004
Trustee fees (Note 7)		1,278			5,015

Total Gross Expenses Before Fees Reimbursed		8,279			125,264


Less:
Deferred compensation reimbursed (Note 7)		(21	)		(245	)
Investment advisory fees reimbursed (Note 4)		—			—
Trustee fees reimbursed (Note 7)		(1,278	)		(5,015	)

Total Net Expenses		6,980			120,004

Net Investment Income (Loss)		139,722			382,213


NET REALIZED GAIN (LOSS) ON:
Investments in affiliated securities		—			—
Investments in securities		2,041			(30,868	)
In-kind redemptions on investments in securities		—			(1,161	)
Futures contracts		—			—
Foreign currency transactions		—			—
Securities sold short		—			—

Net Realized Gain (Loss)		2,041			(32,029	)


NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON:
Investments in securities		482,761			227,098
Securities lending		—			—
Futures contracts		—			—
Forward foreign currency contracts		—			—
Translation of other assets and liabilities denominated in foreign currencies		—			—

Net Change in Unrealized Appreciation (Depreciation)		482,761			227,098

Net Realized and Unrealized Gain (Loss)		484,802			195,069

Net Increase (Decrease) in Net Assets Resulting from Operations	$	624,524		$	577,282

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			13

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, 2016 (Unaudited)			Year Ended October 31, 2015			Six Months Ended April 30, 2016 (Unaudited)			Year Ended October 31, 2015

OPERATIONS
Net investment income (loss)	$	7,601,625		$	13,818,663		$	7,676,090		$	14,146,475
Net realized gain (loss)		(4,313,504	)		(8,590,369	)		(16,858,804	)		4,070,117
Net change in unrealized appreciation (depreciation)		(799,645	)		12,612,682			7,193,596			(27,109,714	)


Net Increase (Decrease) in Net Assets
Resulting from Operations		2,488,476			17,840,976			(1,989,118	)		(8,893,122	)


DISTRIBUTIONS TO SHAREHOLDERS
Net investment income		(16,800,281	)		(10,104,239	)		(15,681,333	)		(16,879,469	)
Net realized gain		—			—			—			—
Tax return of capital		—			—			—			—

Total distributions		(16,800,281	)		(10,104,239	)		(15,681,333	)		(16,879,469	)


CAPITAL TRANSACTIONS⁽¹⁾
Proceeds from shares issued		8,378,628			25,750,248			64,653,946			95,913,757
Cost of shares redeemed		(4,314,627	)		(13,290,008	)		—			(143,846,513	)

Net Increase (Decrease) from Capital Transactions		4,064,001			12,460,240			64,653,946			(47,932,756	)

Total Increase (Decrease) in Net Assets		(10,247,804	)		20,196,977			46,983,495			(73,705,347	)


NET ASSETS
Beginning of Period	$	761,457,461		$	741,260,484		$	570,187,906		$	643,893,253

End of Period	$	751,209,657		$	761,457,461		$	617,171,401		$	570,187,906

Undistributed (accumulated) net investment income (loss) included in end of period net assets	$	1,704,980		$	10,903,636		$	3,185,154		$	11,190,397


SHARE TRANSACTIONS
Beginning of period		8,750,001			8,600,001			9,800,001			10,600,001
Shares issued		—			—			—			—
Shares issued in-kind		100,000			300,000			1,200,000			1,600,000
Shares redeemed		—			—			—			—
Shares redeemed in-kind		(50,000	)		(150,000	)		—			(2,400,000	)

Shares Outstanding, End of Period		8,800,001			8,750,001			11,000,001			9,800,001

⁽¹⁾

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

See Accompanying Notes to the Financial Statements.


14		FLEXSHARES SEMIANNUAL REPORT

Statements of Changes in Net Assets (cont.)


	FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund						FlexShares^® Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund
	Six Months Ended April 30, 2016 (Unaudited)			Year Ended October 31, 2015			November 9, 2015* through April 30, 2016

OPERATIONS
Net investment income (loss)	$	1,283,087		$	4,138,106		$	71,548
Net realized gain (loss)		(7,582,682	)		(12,834,455	)		(138,684	)
Net change in unrealized appreciation (depreciation)		12,652,148			(22,206,737	)		(82,831	)


Net Increase (Decrease) in Net Assets
Resulting from Operations		6,352,553			(30,903,086	)		(149,967	)


DISTRIBUTIONS TO SHAREHOLDERS
Net investment income		(4,258,934	)		(4,902,676	)		(71,707	)
Net realized gain		—			—			—
Tax return of capital		—			—			—

Total distributions		(4,258,934	)		(4,902,676	)		(71,707	)


CAPITAL TRANSACTIONS⁽¹⁾
Proceeds from shares issued		60,282,273			—			564,445
Cost of shares redeemed		—			(24,602,139	)		—

Net Increase (Decrease) from Capital Transactions		60,282,273			(24,602,139	)		564,445

Total Increase (Decrease) in Net Assets		62,375,892			(60,407,901	)		342,771


NET ASSETS
Beginning of Period	$	198,072,725		$	258,480,626		$	2,500,025	⁽²⁾

End of Period	$	260,448,617		$	198,072,725		$	2,842,796

Undistributed (accumulated) net investment income (loss) included in end of period net assets	$	48,268		$	3,024,115		$	(159	)


SHARE TRANSACTIONS
Beginning of period		4,400,001			4,900,001			100,001	⁽²⁾
Shares issued		—			—			—
Shares issued in-kind		1,500,000			—			25,000
Shares redeemed		—			—			—
Shares redeemed in-kind		—			(500,000	)		—

Shares Outstanding, End of Period		5,900,001			4,400,001			125,001

*	Commencement of investment operations.

⁽¹⁾

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

⁽²⁾

Amount includes the initial subscription.

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			15

Statements of Changes in Net Assets (cont.)


	FlexShares^® Currency Hedged Morningstar EM Factor Tilt Index Fund			FlexShares^® US Quality Large Cap Index Fund
	November 9, 2015* through April 30, 2016			Six Months Ended April 30, 2016 (Unaudited)			September 23, 2015* through October 31, 2015

OPERATIONS
Net investment income (loss)	$	68,152		$	29,323		$	3,221
Net realized gain (loss)		(1,101,110	)		17,838			(2,016	)
Net change in unrealized appreciation (depreciation)		2,769,496			(109,851	)		161,103


Net Increase (Decrease) in Net Assets
Resulting from Operations		1,736,538			(62,690	)		162,308


DISTRIBUTIONS TO SHAREHOLDERS
Net investment income		(69,555	)		(27,285	)		—
Net realized gain		—			—			—
Tax return of capital		—			—			—

Total distributions		(69,555	)		(27,285	)		—


CAPITAL TRANSACTIONS⁽¹⁾
Proceeds from shares issued		22,989,889			1,285,576			—
Cost of shares redeemed		—			—			—

Net Increase (Decrease) from Capital Transactions		22,989,889			1,285,576			—

Total Increase (Decrease) in Net Assets		24,656,872			1,195,601			162,308


NET ASSETS
Beginning of Period	$	2,500,025	⁽²⁾	$	2,662,308		$	2,500,000	⁽²⁾

End of Period	$	27,156,897		$	3,857,909		$	2,662,308

Undistributed (accumulated) net investment income (loss) included in end of period net assets	$	(1,403	)	$	5,259		$	3,221


SHARE TRANSACTIONS
Beginning of period		100,001	⁽²⁾		100,001			100,001	⁽²⁾
Shares issued		—			—			—
Shares issued in-kind		1,025,000			50,000			—
Shares redeemed		—			—			—
Shares redeemed in-kind		—			—			—

Shares Outstanding, End of Period		1,125,001			150,001			100,001

*	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.


16		FLEXSHARES SEMIANNUAL REPORT

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, 2016 (Unaudited)			Year Ended October 31, 2015			Six Months Ended April 30, 2016 (Unaudited)			Year Ended October 31, 2015

OPERATIONS
Net investment income (loss)	$	21,922,532		$	76,369,460		$	5,754,177		$	8,240,635
Net realized gain (loss)		(220,149,383	)		(68,537,827	)		(8,350,245	)		(5,891,735	)
Net change in unrealized appreciation (depreciation)		382,900,871			(574,271,356	)		28,088,801			(13,604,483	)


Net Increase (Decrease) in Net Assets
Resulting from Operations		184,674,020			(566,439,723	)		25,492,733			(11,255,583	)


DISTRIBUTIONS TO SHAREHOLDERS
Net investment income		(81,155,697	)		(68,313,771	)		(5,323,570	)		(7,352,334	)
Net realized gain		—			—			—			—
Tax return of capital		—			—			—			—

Total distributions		(81,155,697	)		(68,313,771	)		(5,323,570	)		(7,352,334	)


CAPITAL TRANSACTIONS⁽¹⁾
Proceeds from shares issued		225,689,240			345,280,830			134,438,751			245,625,235
Cost of shares redeemed		(421,482,812	)		(581,130,533	)		—			—

Net Increase (Decrease) from Capital Transactions		(195,793,572	)		(235,849,703	)		134,438,751			245,625,235

Total Increase (Decrease) in Net Assets		(92,275,249	)		(870,603,197	)		154,607,914			227,017,318


NET ASSETS
Beginning of Period	$	2,004,234,317		$	2,874,837,514		$	467,681,047		$	240,663,729

End of Period	$	1,911,959,068		$	2,004,234,317		$	622,288,961		$	467,681,047

Undistributed (accumulated) net investment income (loss) included in end of period net assets	$	4,802,175		$	64,035,340		$	1,504,253		$	1,073,646


SHARE TRANSACTIONS
Beginning of period		78,550,001			86,650,001			10,800,001			5,250,001
Shares issued		—			—			—			—
Shares issued in-kind		10,050,000			11,350,000			3,250,000			5,550,000
Shares redeemed		—			—			—			—
Shares redeemed in-kind		(17,650,000	)		(19,450,000	)		—			—

Shares Outstanding, End of Period		70,950,001			78,550,001			14,050,001			10,800,001

⁽¹⁾

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

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			17

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, 2016 (Unaudited)			Year Ended October 31, 2015			November 23, 2015* through April 30, 2016

OPERATIONS
Net investment income (loss)	$	3,521,212		$	2,142,497		$	32,732
Net realized gain (loss)		(2,962,008	)		(405,030	)		(134,645	)
Net change in unrealized appreciation (depreciation)		7,510,005			4,205,778			47,028


Net Increase (Decrease) in Net Assets
Resulting from Operations		8,069,209			5,943,245			(54,885	)


DISTRIBUTIONS TO SHAREHOLDERS
Net investment income		(2,609,456	)		(2,097,648	)		(32,883	)
Net realized gain		—			—			—
Tax return of capital		—			—			—

Total distributions		(2,609,456	)		(2,097,648	)		(32,883	)


CAPITAL TRANSACTIONS⁽¹⁾
Proceeds from shares issued		55,375,428			70,335,087			—
Cost of shares redeemed		—			—			(1,115,295	)

Net Increase (Decrease) from Capital Transactions		55,375,428			70,335,087			(1,115,295	)

Total Increase (Decrease) in Net Assets		60,835,181			74,180,684			(1,203,063	)


NET ASSETS
Beginning of Period	$	132,183,823		$	58,003,139		$	2,500,025	⁽²⁾

End of Period	$	193,019,004		$	132,183,823		$	1,296,962

Undistributed (accumulated) net investment income (loss) included in end of period net assets	$	1,246,096		$	334,340		$	(151	)


SHARE TRANSACTIONS
Beginning of period		2,300,001			1,050,001			100,001	⁽²⁾
Shares issued		—			—			—
Shares issued in-kind		1,000,000			1,250,000			—
Shares redeemed		—			—			—
Shares redeemed in-kind		—			—			(50,000	)

Shares Outstanding, End of Period		3,300,001			2,300,001			50,001

*	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.


18		FLEXSHARES SEMIANNUAL REPORT

Statements of Changes in Net Assets (cont.)


	FlexShares^® Quality Dividend Index Fund						FlexShares^® Quality Dividend Defensive Index Fund
	Six Months Ended April 30, 2016 (Unaudited)			Year Ended October 31, 2015			Six Months Ended April 30, 2016 (Unaudited)			Year Ended October 31, 2015

OPERATIONS
Net investment income (loss)	$	15,323,886		$	19,949,707		$	3,239,821		$	5,138,347
Net realized gain (loss)		(2,032,731	)		10,557,113			484,024			859,145
Net change in unrealized appreciation (depreciation)		43,961,465			(6,987,261	)		76,617			1,774,856


Net Increase (Decrease) in Net Assets
Resulting from Operations		57,252,620			23,519,559			3,800,462			7,772,348


DISTRIBUTIONS TO SHAREHOLDERS
Net investment income		(13,767,335	)		(18,320,477	)		(3,212,430	)		(4,730,997	)
Net realized gain		—			—			—			—
Tax return of capital		—			—			—			—

Total distributions		(13,767,335	)		(18,320,477	)		(3,212,430	)		(4,730,997	)


CAPITAL TRANSACTIONS⁽¹⁾
Proceeds from shares issued		544,259,806			211,006,878			27,559,575			76,849,789
Cost of shares redeemed		(24,810,036	)		(99,257,476	)		(13,402,246	)		(10,747,603	)

Net Increase (Decrease) from Capital Transactions		519,449,770			111,749,402			14,157,329			66,102,186

Total Increase (Decrease) in Net Assets		562,935,055			116,948,484			14,745,361			69,143,537


NET ASSETS
Beginning of Period	$	703,615,064		$	586,666,580		$	191,605,508		$	122,461,971

End of Period	$	1,266,550,119		$	703,615,064		$	206,350,869		$	191,605,508

Undistributed (accumulated) net investment income (loss) included in end of period net assets	$	3,636,788		$	2,080,237		$	558,458		$	531,067


SHARE TRANSACTIONS
Beginning of period		19,550,001			16,400,001			5,350,001			3,500,001
Shares issued		150,000			—			—			—
Shares issued in-kind		16,000,000			5,850,000			800,000			2,150,000
Shares redeemed		—			—			—			—
Shares redeemed in-kind		(750,000	)		(2,700,000	)		(400,000	)		(300,000	)

Shares Outstanding, End of Period		34,950,001			19,550,001			5,750,001			5,350,001

⁽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

Statements of Changes in Net Assets (cont.)


	FlexShares^® Quality Dividend Dynamic Index Fund						FlexShares^® International Quality Dividend Index Fund
	Six Months Ended April 30, 2016 (Unaudited)			Year Ended October 31, 2015			Six Months Ended April 30, 2016 (Unaudited)			Year Ended October 31, 2015

OPERATIONS
Net investment income (loss)	$	970,238		$	2,982,716		$	6,503,477		$	15,022,367
Net realized gain (loss)		90,505			2,209,184			(27,864,541	)		(25,662,068	)
Net change in unrealized appreciation (depreciation)		(2,143,288	)		(3,669,797	)		15,176,847			(20,369,466	)


Net Increase (Decrease) in Net Assets
Resulting from Operations		(1,082,545	)		1,522,103			(6,184,217	)		(31,009,167	)


DISTRIBUTIONS TO SHAREHOLDERS
Net investment income		(1,227,359	)		(2,673,680	)		(4,081,954	)		(14,909,952	)
Net realized gain		—			—			—			—
Tax return of capital		—			—			—			—

Total distributions		(1,227,359	)		(2,673,680	)		(4,081,954	)		(14,909,952	)


CAPITAL TRANSACTIONS⁽¹⁾
Proceeds from shares issued		—			10,932,297			20,426,542			176,574,013
Cost of shares redeemed		(19,916,906	)		(29,127,606	)		(72,718,178	)		(29,550,337	)

Net Increase (Decrease) from Capital Transactions		(19,916,906	)		(18,195,309	)		(52,291,636	)		147,023,676

Total Increase (Decrease) in Net Assets		(22,226,810	)		(19,346,886	)		(62,557,807	)		101,104,557


NET ASSETS
Beginning of Period	$	73,803,842		$	93,150,728		$	430,589,871		$	329,485,314

End of Period	$	51,577,032		$	73,803,842		$	368,032,064		$	430,589,871

Undistributed (accumulated) net investment income (loss) included in end of period net assets	$	174,371		$	431,492		$	2,617,654		$	196,131


SHARE TRANSACTIONS
Beginning of period		2,100,001			2,600,001			18,700,001			12,600,001
Shares issued		—			—			—			—
Shares issued in-kind		—			300,000			900,000			7,300,000
Shares redeemed		—			—			—			—
Shares redeemed in-kind		(600,000	)		(800,000	)		(3,400,000	)		(1,200,000	)

Shares Outstanding, End of Period		1,500,001			2,100,001			16,200,001			18,700,001

⁽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.


20		FLEXSHARES SEMIANNUAL REPORT

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, 2016 (Unaudited)			Year Ended October 31, 2015			Six Months Ended April 30, 2016 (Unaudited)			Year Ended October 31, 2015

OPERATIONS
Net investment income (loss)	$	1,134,595		$	3,961,822		$	409,224		$	2,414,352
Net realized gain (loss)		(6,943,615	)		(5,833,139	)		(3,693,524	)		(7,329,518	)
Net change in unrealized appreciation (depreciation)		5,084,312			(4,326,063	)		1,742,579			(1,153,495	)


Net Increase (Decrease) in Net Assets
Resulting from Operations		(724,708	)		(6,197,380	)		(1,541,721	)		(6,068,661	)


DISTRIBUTIONS TO SHAREHOLDERS
Net investment income		(946,627	)		(3,831,030	)		(393,873	)		(2,416,579	)
Net realized gain		—			—			—			—
Tax return of capital		—			—			—			—

Total distributions		(946,627	)		(3,831,030	)		(393,873	)		(2,416,579	)


CAPITAL TRANSACTIONS⁽¹⁾
Proceeds from shares issued		—			70,975,221			15,253,107			37,110,397
Cost of shares redeemed		(29,645,410	)		(39,494,587	)		(21,080,578	)		(106,844,379	)

Net Increase (Decrease) from Capital Transactions		(29,645,410	)		31,480,634			(5,827,471	)		(69,733,982	)

Total Increase (Decrease) in Net Assets		(31,316,745	)		21,452,224			(7,763,065	)		(78,219,222	)


NET ASSETS
Beginning of Period	$	87,892,978		$	66,440,754		$	35,725,835		$	113,945,057

End of Period	$	56,576,233		$	87,892,978		$	27,962,770		$	35,725,835

Undistributed (accumulated) net investment income (loss) included in end of period net assets	$	384,219		$	196,251		$	123,244		$	107,893


SHARE TRANSACTIONS
Beginning of period		3,900,001			2,600,001			1,500,001			4,300,001
Shares issued		—			—			—			—
Shares issued in-kind		—			2,900,000			700,000			1,500,000
Shares redeemed		—			—			—			—
Shares redeemed in-kind		(1,400,000	)		(1,600,000	)		(1,000,000	)		(4,300,000	)

Shares Outstanding, End of Period		2,500,001			3,900,001			1,200,001			1,500,001

⁽¹⁾

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

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			21

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, 2016 (Unaudited)			Year Ended October 31, 2015			Six Months Ended April 30, 2016 (Unaudited)			Year Ended October 31, 2015

OPERATIONS
Net investment income (loss)	$	(8,634,813	)	$	(8,324,831	)	$	(2,006,682	)	$	844,231
Net realized gain (loss)		(2,751,290	)		(18,052,559	)		1,622,879			(2,671,154	)
Net change in unrealized appreciation (depreciation)		36,958,087			(3,791,271	)		14,226,620			(1,132,430	)


Net Increase (Decrease) in Net Assets
Resulting from Operations		25,571,984			(30,168,661	)		13,842,817			(2,959,353	)


DISTRIBUTIONS TO SHAREHOLDERS
Net investment income		—			—			—			(843,582	)
Net realized gain		—			—			—			—
Tax return of capital		—			(1,721,740	)		—			(190,336	)

Total distributions		—			(1,721,740	)		—			(1,033,918	)


CAPITAL TRANSACTIONS⁽¹⁾
Proceeds from shares issued		23,319,345			80,783,490			126,183,439			146,477,173
Cost of shares redeemed		(183,598,449	)		(317,454,863	)		(53,922,680	)		(18,609,063	)

Net Increase (Decrease) from Capital Transactions		(160,279,104	)		(236,671,373	)		72,260,759			127,868,110

Total Increase (Decrease) in Net Assets		(134,707,120	)		(268,561,774	)		86,103,576			123,874,839


NET ASSETS
Beginning of Period	$	1,978,311,056		$	2,246,872,830		$	432,210,279		$	308,335,440

End of Period	$	1,843,603,936		$	1,978,311,056		$	518,313,855		$	432,210,279

Undistributed (accumulated) net investment income (loss) included in end of period net assets	$	(8,634,813	)	$	—		$	(2,006,682	)	$	—


SHARE TRANSACTIONS
Beginning of period		81,154,000			90,854,000			17,600,001			12,400,001
Shares issued		—			—			—			50,000
Shares issued in-kind		950,000			3,300,000			5,100,000			5,900,000
Shares redeemed		—			—			—			—
Shares redeemed in-kind		(7,550,000	)		(13,000,000	)		(2,200,000	)		(750,000	)

Shares Outstanding, End of Period		74,554,000			81,154,000			20,500,001			17,600,001

⁽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.


22		FLEXSHARES SEMIANNUAL REPORT

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, 2016 (Unaudited)			Year Ended October 31, 2015			Six Months Ended April 30, 2016 (Unaudited)			November 12, 2014* through October 31, 2015

OPERATIONS
Net investment income (loss)	$	267,706		$	230,497		$	217,399		$	142,747
Net realized gain (loss)		28,643			27,369			27,173			(5,826	)
Net change in unrealized appreciation (depreciation)		142,664			(50,838	)		434,325			20,839


Net Increase (Decrease) in Net Assets
Resulting from Operations		439,013			207,028			678,897			157,760


DISTRIBUTIONS TO SHAREHOLDERS
Net investment income		(535,100	)		(410,495	)		(195,607	)		(115,873	)
Net realized gain		—			(1,988	)		—			—
Tax return of capital		—			—			—			—

Total distributions		(535,100	)		(412,483	)		(195,607	)		(115,873	)


CAPITAL TRANSACTIONS⁽¹⁾
Proceeds from shares issued		8,665,830			18,807,817			10,050,933			7,538,666
Cost of shares redeemed		—			—			—			—

Net Increase (Decrease) from Capital Transactions		8,665,830			18,807,817			10,050,933			7,538,666

Total Increase (Decrease) in Net Assets		8,569,743			18,602,362			10,534,223			7,580,553


NET ASSETS
Beginning of Period	$	23,627,029		$	5,024,667		$	12,580,603		$	5,000,050	⁽²⁾

End of Period	$	32,196,772		$	23,627,029		$	23,114,826		$	12,580,603

Undistributed (accumulated) net investment income (loss) included in end of period net assets	$	(62,302	)	$	205,092		$	48,666		$	26,874


SHARE TRANSACTIONS
Beginning of period		950,001			200,001			250,001			100,001	⁽²⁾
Shares issued		350,000			750,000			200,000			150,000
Shares issued in-kind		—			—			—			—
Shares redeemed		—			—			—			—
Shares redeemed in-kind		—			—			—			—

Shares Outstanding, End of Period		1,300,001			950,001			450,001			250,001

*	Commencement of investment operations.

⁽¹⁾

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

⁽²⁾

Amount includes the initial subscription.

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			23

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, 2016 (Unaudited)			September 23, 2015* through October 31, 2015			Six Months Ended April 30, 2016 (Unaudited)			Year Ended October 31, 2015

OPERATIONS
Net investment income (loss)	$	139,722		$	23,209		$	382,213		$	541,448
Net realized gain (loss)		2,041			—			(32,029	)		85,452
Net change in unrealized appreciation (depreciation)		482,761			5,370			227,098			(252,146	)


Net Increase (Decrease) in Net Assets
Resulting from Operations		624,524			28,579			577,282			374,754


DISTRIBUTIONS TO SHAREHOLDERS
Net investment income		(132,286	)		—			(358,577	)		(521,790	)
Net realized gain		—			—			(64,745	)		(119,613	)
Tax return of capital		—			—			—			—

Total distributions		(132,286	)		—			(423,322	)		(641,403	)


CAPITAL TRANSACTIONS⁽¹⁾
Proceeds from shares issued		5,120,959			—			7,528,306			33,930,054
Cost of shares redeemed		—			—			(7,526,732	)		(11,312,430	)

Net Increase (Decrease) from Capital Transactions		5,120,959			—			1,574			22,617,624

Total Increase (Decrease) in Net Assets		5,613,197			28,579			155,534			22,350,975


NET ASSETS
Beginning of Period	$	5,028,594		$	5,000,015	⁽²⁾	$	97,961,847		$	75,610,872

End of Period	$	10,641,791		$	5,028,594		$	98,117,381		$	97,961,847

Undistributed (accumulated) net investment income (loss) included in end of period net assets	$	30,645		$	23,209		$	75,452		$	51,816


SHARE TRANSACTIONS
Beginning of period		100,001			100,001	⁽²⁾		1,300,001			1,000,001
Shares issued		100,000			—			100,000			450,000
Shares issued in-kind		—			—			—			—
Shares redeemed		—			—			(50,000	)		(50,000	)
Shares redeemed in-kind		—			—			(50,000	)		(100,000	)

Shares Outstanding, End of Period		200,001			100,001			1,300,001			1,300,001

*	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.


24		FLEXSHARES SEMIANNUAL REPORT

[THIS PAGE INTENTIONALLY LEFT BLANK]


FLEXSHARES SEMIANNUAL REPORT			25

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			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, 2016 (Unaudited)	$	87.02	$	0.87	^(a)	$	(0.61	)	$	0.26		$	(1.92	)	$	—	$	—	$	(1.92	)
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	)
Year ended October 31, 2012		51.74		0.91	^(a)		6.17			7.08			(0.12	)		—		—		(0.12	)
For the period 09/16/11* through 10/31/11		50.00		0.07	^(a)		1.67			1.74			—			—		—		—

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund
Six Months ended April 30, 2016 (Unaudited)		58.18		0.76	^(a)		(1.24	)		(0.48	)		(1.59	)		—		—		(1.59	)
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	)
For the period 09/25/12* through 10/31/12		50.00		0.12	^(a)		(0.81	)		(0.69	)		—			—		—		—

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund
Six Months ended April 30, 2016 (Unaudited)		45.02		0.24	^(a)		(0.24	)^(g)		0.00			(0.88	)		—		—		(0.88	)
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	)
For the period 09/25/12* through 10/31/12		50.00		0.03	^(a)		(0.43	)		(0.40	)		—			—		—		—

FlexShares^® Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund
For the period 11/09/15* through 04/30/16 (Unaudited)		25.00		0.66	^(a)		(2.22	)		(1.56	)		(0.70	)		—		—		(0.70	)

FlexShares^® Currency Hedged Morningstar EM Factor Tilt Index Fund
For the period 11/09/15* through 04/30/16 (Unaudited)		25.00		0.12	^(a)		(0.48	)^(g)		(0.36	)		(0.50	)		—		—		(0.50	)

FlexShares^® US Quality Large Cap Index Fund
Six Months ended April 30, 2016 (Unaudited)		26.62		0.26	^(a)		(0.89	)		(0.63	)		(0.27	)		—		—		(0.27	)
For the period 09/23/15* through 10/31/15		25.00		0.03	^(a)		1.59			1.62			—			—		—		—

*	Commencement of investment operations.

(a)

Net investment income per share is based on average shares outstanding.

(b)

Not annualized for periods less than one year.

(c)

Annualized for periods less than one year.

(d)

Net asset value total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at adjusted net asset value.

(e)

Market value total return is calculated assuming an initial investment made at the market value at the beginning of the period, reinvestment of all dividends and distributions at net asset value during the period and redemption on the last day of the period at market value. Market value is determined by the mid point of the bid/ask spread at 4:00 p.m. Eastern Time from the primary listing exchange. Market value returns may vary from net asset value returns.

(f)

In-kind transactions are not included in portfolio turnover calculations.

(g)

The amount shown for a share outstanding throughout the period is not in accordance with the aggregate net realized and unrealized gain (loss) for that period because of the timing of sales and repurchases of the Fund shares in relation to fluctuating market value of the investments in the Fund.

(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%.

See Accompanying Notes to the Financial Statements.


26		FLEXSHARES SEMIANNUAL REPORT


								RATIOS/SUPPLEMENTAL DATA
		Total Return^(b)						Ratios to Average Net Assets^(c)												Supplemental Data
Net Asset Value, end of period		Net Asset Value^(d)			Market Value (Unaudited)^(e)			Expenses			Expenses net of reimbursements			Net investment income (loss) before reimbursements			Net investment Income (Loss) net of reimbursements			Portfolio Turnover Rate^(b)(f)			Net assets, end of period (thousands)

$	85.36		0.31	%		0.32	%		0.28	%		0.27	%		2.10	%		2.11	%		14	%	$	751,210
	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
	58.70		13.71			16.86			0.29			0.27			1.57			1.59			15			149,677
	51.74		3.48			3.56			0.49			0.27			1.02			1.24			1			7,761

	56.11		(0.75	)		(1.33	)		0.43			0.42			2.83			2.84			19			617,171
	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
	49.31		(1.40	)		23.98			0.43			0.42			2.47			2.49			1			9,862


	44.14		0.10			0.47			0.66			0.65			1.17			1.18			22			260,449
	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
	49.60		(0.80	)		23.52			0.67			0.65			0.50			0.52			1			9,920


	22.74		(6.39	)		(5.12	)		0.56	⁽ⁱ⁾		0.05	⁽ⁱ⁾		5.55			6.06			4			2,843


	24.14		(1.42	)		(1.34	)		0.72	⁽ⁱ⁾		0.06	⁽ⁱ⁾		0.46			1.12			2			27,157

	25.72		(2.37	)		(2.37	)		0.40			0.32			2.01			2.09			30			3,858
	26.62		6.48			6.48			0.42			0.32			1.10			1.20			3			2,662

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			27

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			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, 2016 (Unaudited)	$	25.52	$	0.30	^(a)	$	2.25		$	2.55		$	(1.12	)	$	—	$	—	$	(1.12	)
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	)
Year ended October 31, 2012		35.01		0.44			(0.17	)^(g)		0.27			(0.09	)		—		—		(0.09	)
For the period 09/16/11* through 10/31/11		35.00		0.03	^(a)		(0.02	)^(g)		0.01			—			—		—		—

FlexShares^® STOXX^® Global Broad Infrastructure Index Fund
Six Months ended April 30, 2016 (Unaudited)		43.30		0.46	^(a)		0.96			1.42			(0.43	)		—		—		(0.43	)
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			—			—		—		—

FlexShares^® Global Quality Real Estate Index Fund
Six Months ended April 30, 2016 (Unaudited)		57.47		1.22	^(a)		0.69			1.91			(0.89	)		—		—		(0.89	)
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
For the period 11/23/15* through 04/30/16 (Unaudited)		25.00		0.48	^(a)		0.85	^(g)		1.33			(0.39	)		—		—		(0.39	)

FlexShares^® Quality Dividend Index Fund
Six Months ended April 30, 2016 (Unaudited)		35.99		0.60	^(a)		0.20			0.80			(0.55	)		—		—		(0.55	)
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)

(e)

(f)

In-kind transactions are not included in portfolio turnover calculations.

(g)

(h)

Per share amount is less than $0.005.

(i)

(j)

See Accompanying Notes to the Financial Statements.


28		FLEXSHARES SEMIANNUAL REPORT


								RATIOS/SUPPLEMENTAL DATA
		Total Return^(b)						Ratios to Average Net Assets^(c)												Supplemental Data
Net Asset Value, end of period		Net Asset Value^(d)			Market Value (Unaudited)^(e)			Expenses			Expenses net of reimbursements			Net investment income (loss) before reimbursements			Net investment Income (Loss) net of reimbursements			Portfolio Turnover Rate^(b)(f)			Net assets, end of period (thousands)


$	26.95		10.77	%		10.94	%		0.49	%		0.48	%		2.59	%		2.60	%		18	%	$	1,911,959
	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
	35.19		0.79			1.71			0.50			0.48			2.02			2.03			5			566,532
	35.01		0.03			(0.57	)		0.77			0.48			0.53			0.821						103,268


	44.29		3.35			2.95			0.48			0.47			2.20			2.21			10			622,289
	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


	58.49		3.36			3.06			0.46			0.45			4.38			4.39			25			193,019
	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


	25.94		5.39			5.47			0.70	⁽ⁱ⁾		0.10	⁽ⁱ⁾		3.93			4.53			2			1,297


	36.24		2.24			2.21			0.38			0.37			3.42			3.43			37			1,266,550
	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			29

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			Net Investment income			From Net Realized Gains			Tax return of capital			Total

FlexShares^® Quality Dividend Defensive Index Fund
Six Months ended April 30, 2016 (Unaudited)	$	35.81	$	0.59	^(a)	$	0.08		$	0.67		$	(0.59	)	$	—		$	—		$	(0.59	)
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, 2016 (Unaudited)		35.14		0.54	^(a)		(0.64	)		(0.10	)		(0.66	)		—			—			(0.66	)
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	)

FlexShares^® International Quality Dividend Index Fund
Six Months ended April 30, 2016 (Unaudited)		23.03		0.39	^(a)		(0.45	)		(0.06	)		(0.25	)		—			—			(0.25	)
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, 2016 (Unaudited)		22.54		0.40	^(a)		0.01	^(g)		0.41			(0.32	)		—			—			(0.32	)
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	)

FlexShares^® International Quality Dividend Dynamic Index Fund
Six Months ended April 30, 2016 (Unaudited)		23.82		0.29	^(a)		(0.46	)		(0.17	)		(0.35	)		—			—			(0.35	)
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, 2016 (Unaudited)		24.38		(0.11	)^(a)		0.46			0.35			—			—			—			—
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	)
Year ended October 31, 2012		25.14		0.15	^(a)		0.39			0.54			(0.22	)		(0.03	)		—			(0.25	)
For the period 09/19/11* through 10/31/11		25.00		0.06	^(a)		0.08			0.14			—			—			—			—

*	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)

(e)

(f)

In-kind transactions are not included in portfolio turnover calculations.

(g)

(h)

Per share amount is less than $0.005.

(i)

(j)

See Accompanying Notes to the Financial Statements.


30		FLEXSHARES SEMIANNUAL REPORT


								RATIOS/SUPPLEMENTAL DATA
		Total Return^(b)						Ratios to Average Net Assets^(c)												Supplemental Data
Net Asset Value, end of period		Net Asset Value^(d)			Market Value (Unaudited)^(e)			Expenses			Expenses net of reimbursements			Net investment income (loss) before reimbursements			Net investment Income (Loss) net of reimbursements			Portfolio Turnover Rate^(b)(f)			Net assets, end of period (thousands)


$	35.89		1.89	%		1.92	%		0.38	%		0.37	%		3.43	%		3.44	%		39	%	$	206,351
	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


	34.38		(0.29	)		(0.09	)		0.38			0.37			3.25			3.27			34			51,577
	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


	22.72		(0.21	)		0.04			0.48			0.47			3.68			3.69			35			368,032
	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


	22.63		1.90			2.09			0.48			0.47			3.71			3.72			37			56,576
	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


	23.30		(0.67	)		(0.73	)		0.49			0.47			2.66			2.68			36			27,963
	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


	24.73		1.44			1.52			0.21			0.20			(0.94	)		(0.93	)		33			1,843,604
	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
	25.43		2.15			1.94			0.22			0.20			0.57			0.59			55			684,034
	25.14		0.56			0.82			0.51			0.20			1.72			2.03			23			140,912

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			31

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			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, 2016 (Unaudited)	$	24.56	$	(0.10	)^(a)	$	0.82		$	0.72		$	—		$	—		$	—		$	—
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	)
Year ended October 31, 2012		25.03		0.24	^(a)		1.31			1.55			(0.27	)		(0.01	)		—			(0.28	)
For the period 09/19/11* through 10/31/11		25.00		0.07	^(a)		(0.04	)^(g)		0.03			—			—			—			—

FlexShares^® Disciplined Duration MBS Index Fund
Six Months ended April 30, 2016 (Unaudited)		24.87		0.24	^(a)		0.15			0.39			(0.49	)		—			—			(0.49	)
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, 2016 (Unaudited)		50.32		0.61	^(a)		1.02			1.63			(0.58	)		—			—			(0.58	)
For the period 11/12/14* through 10/31/15		50.00		1.12	^(a)		0.18			1.30			(0.98	)		—			—			(0.98	)

FlexShares^® Credit-Scored US Long Corporate Bond Index Fund
Six Months ended April 30, 2016 (Unaudited)		50.29		1.10	^(a)		2.97			4.07			(1.15	)		—			—			(1.15	)
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, 2016 (Unaudited)		75.36		0.30	^(a)		0.14			0.44			(0.28	)		(0.05	)		—			(0.33	)
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	)
For the period 10/09/12* through 10/31/12		75.00		0.01	^(a)		(0.04	)		(0.03	)		—			—			—			—

*	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)

(e)

(f)

In-kind transactions are not included in portfolio turnover calculations.

(g)

(h)

Per share amount is less than $0.005.

(i)

(j)

See Accompanying Notes to the Financial Statements.


32		FLEXSHARES SEMIANNUAL REPORT


								RATIOS/SUPPLEMENTAL DATA
		Total Return^(b)						Ratios to Average Net Assets^(c)												Supplemental Data
Net Asset Value, end of period		Net Asset Value^(d)			Market Value (Unaudited)^(e)			Expenses			Expenses net of reimbursements			Net investment income (loss) before reimbursements			Net investment Income (Loss) net of reimbursements			Portfolio Turnover Rate^(b)(f)			Net assets, end of period (thousands)


$	25.28		2.93	%		2.97	%		0.21	%		0.20	%		(0.86	)%		(0.85	)%		40	%	$	518,314
	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
	26.30		6.13			5.87			0.22			0.20			0.90			0.92			60			374,730
	25.03		0.12			0.56			0.50			0.20			2.03			2.34			10			145,194


	24.77		1.58			1.46			0.22			—	^(j)		1.70			1.91	^(j)		57			32,197
	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


	51.37		3.27			3.53			0.24			0.22			2.42			2.44			35			23,115
	50.32		2.61			2.78			0.26			0.22			2.26			2.30			69			12,581


	53.21		8.28			8.14			0.26			0.22			4.36			4.40			48			10,642
	50.29		0.56			1.16			0.27			0.22			4.38			4.43			—			5,029


	75.47		0.60			0.52			0.26			0.25			0.79			0.80			43			98,117
	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
	74.97		(0.04	)		(3.96	)		0.27			0.25			0.14			0.16			2			7,497

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			33

Schedule of Investments

FlexShares^® Morningstar US Market Factor Tilt Index Fund

April 30, 2016 (Unaudited)


	Shares		Value
COMMON STOCKS – 98.4%
Aerospace & Defense – 2.0%
AAR Corp.(a)		6,512	$	156,549
Aerojet Rocketdyne Holdings, Inc.* (a)		10,032		181,780
Aerovironment, Inc.* (a)		1,408		40,663
Astronics Corp.* (a)		899		33,218
Astronics Corp., Class B*		157		5,797
B/E Aerospace, Inc.(a)		1,232		59,912
The Boeing Co.		13,728		1,850,534
BWX Technologies, Inc.		1,408		47,013
Cubic Corp.(a)		176		7,316
Curtiss-Wright Corp.(a)		3,520		269,562
Engility Holdings, Inc.*		1,056		20,772
Esterline Technologies Corp.* (a)		7,392		507,535
General Dynamics Corp.		5,984		840,872
HEICO Corp.(a)		2,992		183,440
Hexcel Corp.(a)		5,280		239,026
Honeywell International, Inc.		18,656		2,131,821
Huntington Ingalls Industries, Inc.		2,464		356,713
KLX, Inc.* (a)		13,728		462,908
L-3 Communications Holdings, Inc.		2,288		300,941
Lockheed Martin Corp.		6,336		1,472,360
Moog, Inc., Class A*		5,808		283,779
National Presto Industries, Inc.(a)		352		30,691
Northrop Grumman Corp.		4,224		871,242
Orbital ATK, Inc.		3,520		306,240
Raytheon Co.		8,096		1,022,930
Rockwell Collins, Inc.(a)		2,464		217,300
Spirit AeroSystems Holdings, Inc., Class A*		7,216		340,234
TASER International, Inc.* (a)		4,224		77,130
Teledyne Technologies, Inc.* (a)		2,288		212,670
Textron, Inc.		4,752		183,807
TransDigm Group, Inc.* (a)		704		160,420
Triumph Group, Inc.(a)		8,624		312,016
United Technologies Corp.		17,952		1,873,650
				15,060,841


	Shares		Value
Air Freight & Logistics – 0.5%
Air Transport Services Group, Inc.*		13,904	$	195,907
Atlas Air Worldwide Holdings, Inc.* (a)		4,224		168,707
C.H. Robinson Worldwide, Inc.(a)		3,520		249,815
Echo Global Logistics, Inc.*		1,056		24,679
Expeditors International of Washington, Inc.(a)		3,344		165,896
FedEx Corp.		6,336		1,046,137
Forward Air Corp.(a)		2,464		112,309
Hub Group, Inc., Class A*		2,112		81,354
Park-Ohio Holdings Corp.		1,760		44,792
United Parcel Service, Inc., Class B		14,432		1,516,370
XPO Logistics, Inc.* (a)		14,080		424,371
				4,030,337
Airlines – 0.8%
Alaska Air Group, Inc.(a)		5,104		359,475
Allegiant Travel Co.(a)		1,056		169,562
American Airlines Group, Inc.(a)		19,008		659,387
Delta Air Lines, Inc.		25,168		1,048,751
Hawaiian Holdings, Inc.*		11,616		488,685
JetBlue Airways Corp.* (a)		17,072		337,855
SkyWest, Inc.		16,544		388,784
Southwest Airlines Co.(a)		19,888		887,204
Spirit Airlines, Inc.* (a)		18,304		804,095
United Continental Holdings, Inc.*		12,672		580,504
Virgin America, Inc.*		528		29,404
				5,753,706
Auto Components – 0.7%
American Axle & Manufacturing Holdings, Inc.* (a)		14,256		221,111
Autoliv, Inc.(a)		1,408		172,438
BorgWarner, Inc.		11,264		404,603
Cooper Tire & Rubber Co.(a)		15,312		528,876
Cooper-Standard Holding, Inc.* (a)		3,520		271,427

See Accompanying Notes to the Financial Statements.


34		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Auto Components – (continued)
Dana Holding Corp.(a)		47,168	$	609,882
Delphi Automotive PLC		6,336		466,520
Dorman Products, Inc.*		1,408		75,736
Drew Industries, Inc.(a)		1,408		91,281
Federal-Mogul Holdings Corp.*		2,816		26,020
Gentex Corp.(a)		7,040		112,922
Gentherm, Inc.* (a)		3,168		116,392
The Goodyear Tire & Rubber Co.		8,096		234,541
Johnson Controls, Inc.		18,656		772,358
Lear Corp.		1,760		202,629
Modine Manufacturing Co.*		6,336		68,492
Motorcar Parts of America, Inc.* (a)		1,936		62,087
Standard Motor Products, Inc.(a)		2,640		93,746
Superior Industries International, Inc.		1,232		32,180
Tenneco, Inc.* (a)		10,912		581,610
Tower International, Inc.		4,400		100,980
Visteon Corp.(a)		2,112		168,263
				5,414,094
Automobiles – 0.7%
Ford Motor Co.		138,512		1,878,223
General Motors Co.		47,168		1,499,942
Harley-Davidson, Inc.(a)		8,624		412,486
Tesla Motors, Inc.* (a)		1,936		466,111
Thor Industries, Inc.		11,088		709,854
Winnebago Industries, Inc.(a)		3,872		83,790
				5,050,406
Banks – 7.4%
1st Source Corp.		2,816		96,983
Ameris Bancorp(a)		3,520		110,528
Associated Banc-Corp(a)		41,360		754,406
Banc of California, Inc.(a)		176		3,582
BancFirst Corp.(a)		1,232		76,840
BancorpSouth, Inc.(a)		6,512		152,967
Bank of America Corp.		365,024		5,314,750
Bank of Hawaii Corp.(a)		3,520		240,803


	Shares		Value
Banks – (continued)
Bank of the Ozarks, Inc.(a)		4,752	$	196,258
BankUnited, Inc.(a)		7,040		242,880
Banner Corp.(a)		2,640		112,939
BB&T Corp.(a)		28,846		1,020,577
BBCN Bancorp, Inc.		15,312		239,174
Berkshire Hills Bancorp, Inc.		4,224		114,639
BOK Financial Corp.(a)		704		42,367
Boston Private Financial Holdings, Inc.(a)		5,456		66,672
Brookline Bancorp, Inc.		11,440		130,187
Bryn Mawr Bank Corp.(a)		1,760		50,019
Capital Bank Financial Corp., Class A(a)		3,872		117,051
Cardinal Financial Corp.(a)		5,456		120,741
Cathay General Bancorp(a)		6,336		193,375
Central Pacific Financial Corp.		2,816		65,726
Chemical Financial Corp.(a)		5,632		216,607
CIT Group, Inc.		2,288		79,096
Citigroup, Inc.		104,896		4,854,587
Citizens Financial Group, Inc.		23,760		542,916
City Holding Co.(a)		2,112		103,741
Columbia Banking System, Inc.(a)		6,160		181,658
Comerica, Inc.(a)		5,632		250,061
Commerce Bancshares, Inc./Montreal(a)		1,056		49,442
Community Bank System, Inc.(a)		4,928		195,001
Community Trust Bancorp, Inc.		1,584		56,818
Cullen/Frost Bankers, Inc.(a)		880		56,311
Customers Bancorp, Inc.*		2,288		59,442
CVB Financial Corp.(a)		11,616		199,563
Eagle Bancorp, Inc.* (a)		1,936		98,155
East West Bancorp, Inc.		2,464		92,375
Fifth Third Bancorp		20,240		370,594
First BanCorp/Puerto Rico*		8,976		35,006
First Citizens BancShares, Inc./North Carolina, Class A(a)		1,584		403,920
First Commonwealth Financial Corp.(a)		15,312		140,564
First Financial Bancorp		10,912		212,784
First Financial Bankshares, Inc.(a)		3,520		113,978
First Horizon National Corp.(a)		17,248		242,852

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			35

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Banks – (continued)
First Interstate BancSystem, Inc., Class A		3,872	$	104,931
First Merchants Corp.(a)		6,336		162,518
First Midwest Bancorp, Inc./Illinois		10,736		198,401
First NBC Bank Holding Co.* (a)		1,760		38,262
First Niagara Financial Group, Inc.		98,912		1,044,511
First Republic Bank/California(a)		2,816		198,021
FirstMerit Corp.(a)		32,032		709,829
Flushing Financial Corp.		5,280		105,336
FNB Corp./Pennsylvania(a)		40,128		530,492
Fulton Financial Corp.(a)		39,776		556,466
Glacier Bancorp, Inc.(a)		4,752		123,029
Great Western Bancorp, Inc.		880		27,738
Hancock Holding Co.(a)		12,848		333,663
Hanmi Financial Corp.		2,640		61,037
Hilltop Holdings, Inc.* (a)		22,176		440,415
Home BancShares, Inc./Arizona		4,048		174,024
Huntington Bancshares, Inc./Ohio		18,480		185,909
IBERIABANK Corp.(a)		5,456		321,849
Independent Bank Corp./Massachusetts		3,872		182,100
International Bancshares Corp.		15,312		401,021
Investors Bancorp, Inc.(a)		13,024		150,427
JPMorgan Chase & Co.		131,120		8,286,784
KeyCorp		40,128		493,173
Lakeland Financial Corp.		2,816		133,169
LegacyTexas Financial Group, Inc.(a)		2,992		73,783
M&T Bank Corp.(a)		4,224		499,784
MB Financial, Inc.(a)		12,144		422,125
NBT Bancorp, Inc.(a)		8,976		254,380
Old National Bancorp/Indiana(a)		16,896		226,406
Opus Bank(a)		880		31,786
PacWest Bancorp		5,104		204,058
Park National Corp.		1,936		177,725


	Shares		Value
Banks – (continued)
Peoples Bancorp, Inc./Ohio(a)		880	$	18,911
People’s United Financial, Inc.(a)		5,808		90,024
Pinnacle Financial Partners, Inc.(a)		3,168		155,771
The PNC Financial Services Group, Inc.		17,072		1,498,580
Popular, Inc.		19,536		580,610
PrivateBancorp, Inc.(a)		5,808		241,671
Prosperity Bancshares, Inc.(a)		12,848		677,989
Regions Financial Corp.		37,312		349,987
Renasant Corp.(a)		3,872		132,965
S&T Bancorp, Inc.(a)		5,808		149,091
Sandy Spring Bancorp, Inc.		4,576		130,828
Signature Bank/New York*		1,408		194,065
Simmons First National Corp., Class A(a)		1,584		73,973
South State Corp.(a)		2,112		147,798
Southside Bancshares, Inc.		3,168		92,537
Southwest Bancorp, Inc.(a)		1,056		16,949
State Bank Financial Corp.(a)		2,816		58,798
Sterling Bancorp/Delaware		9,856		161,047
Stock Yards Bancorp, Inc.(a)		2,464		99,644
SunTrust Banks, Inc.		18,656		778,701
SVB Financial Group*		1,584		165,180
Synovus Financial Corp.(a)		7,568		235,819
TCF Financial Corp.		30,448		415,311
Texas Capital Bancshares, Inc.* (a)		2,816		129,029
Tompkins Financial Corp.(a)		2,464		160,998
TriCo Bancshares		1,232		33,165
Trustmark Corp.(a)		10,032		245,884
U.S. Bancorp/Minnesotta		53,328		2,276,572
UMB Financial Corp.(a)		2,288		127,556
Umpqua Holdings Corp.(a)		44,000		696,520
Union Bankshares Corp.		7,216		190,575
United Bankshares, Inc./West Virginia		5,808		224,712
United Community Banks, Inc./Georgia		3,872		77,943
Valley National Bancorp(a)		39,072		369,621
Washington Trust Bancorp, Inc.		2,640		96,703
Webster Financial Corp.(a)		6,512		238,600
Wells Fargo & Co.		161,744		8,083,965

See Accompanying Notes to the Financial Statements.


36		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Banks – (continued)
WesBanco, Inc.(a)		5,632	$	180,956
Westamerica Bancorp(a)		352		17,149
Western Alliance Bancorp*		6,688		244,647
Wilshire Bancorp, Inc.(a)		19,712		212,298
Wintrust Financial Corp.(a)		4,400		228,888
Zions Bancorp(a)		4,400		121,088
				55,295,205
Beverages – 1.3%
The Boston Beer Co., Inc., Class A* (a)		528		82,410
Brown-Forman Corp., Class B(a)		2,816		271,237
Coca-Cola Bottling Co. Consolidated		528		84,147
The Coca-Cola Co.		92,752		4,155,290
Coca-Cola Enterprises, Inc.		4,224		221,676
Constellation Brands, Inc., Class A		2,992		466,932
Dr. Pepper Snapple Group, Inc.		3,520		320,003
Molson Coors Brewing Co., Class B		3,872		370,279
Monster Beverage Corp.*		3,344		482,272
PepsiCo, Inc.		34,672		3,569,829
				10,024,075
Biotechnology – 2.2%
ACADIA Pharmaceuticals, Inc.* (a)		4,576		147,805
Achillion Pharmaceuticals, Inc.*		1,760		15,048
Acorda Therapeutics, Inc.* (a)		1,584		40,946
Aegerion Pharmaceuticals, Inc.*		4,048		11,537
Alexion Pharmaceuticals, Inc.* (a)		4,752		661,859
Alkermes PLC* (a)		2,288		90,948
Alnylam Pharmaceuticals, Inc.* (a)		2,464		165,187
AMAG Pharmaceuticals, Inc.* (a)		5,808		154,028
Amgen, Inc.		17,600		2,786,080


	Shares		Value
Biotechnology – (continued)
Anacor Pharmaceuticals, Inc.*		2,288	$	143,549
Arena Pharmaceuticals, Inc.* (a)		2,816		4,844
ARIAD Pharmaceuticals, Inc.*		3,168		22,746
Array BioPharma, Inc.*		4,400		14,036
Baxalta, Inc.		16,192		679,254
BioCryst Pharmaceuticals, Inc.* (a)		3,520		11,475
Biogen, Inc.*		4,928		1,355,151
BioMarin Pharmaceutical, Inc.*		3,520		298,074
Bluebird Bio, Inc.* (a)		1,584		70,250
Catalyst Pharmaceuticals, Inc.*		3,344		2,274
Celgene Corp.*		17,952		1,856,416
Celldex Therapeutics, Inc.* (a)		4,576		18,304
Chimerix, Inc.*		1,936		11,577
Dynavax Technologies Corp.* (a)		352		5,776
Emergent BioSolutions, Inc.* (a)		1,760		67,795
Enanta Pharmaceuticals, Inc.* (a)		528		15,418
FibroGen, Inc.* (a)		1,408		25,344
Five Prime Therapeutics, Inc.*		352		16,752
Geron Corp.* (a)		10,736		31,671
Gilead Sciences, Inc.		48,224		4,253,839
Halozyme Therapeutics, Inc.* (a)		3,344		35,279
Heron Therapeutics, Inc.* (a)		1,760		37,734
ImmunoGen, Inc.* (a)		3,168		21,701
Immunomedics, Inc.* (a)		1,584		5,623
Incyte Corp.*		5,104		368,866
Insmed, Inc.* (a)		1,584		19,246
Insys Therapeutics, Inc.* (a)		352		5,101
Intrexon Corp.* (a)		2,112		56,454
Ionis Pharmaceuticals, Inc.* (a)		3,872		158,636
Ironwood Pharmaceuticals, Inc.* (a)		1,760		18,392
Kite Pharma, Inc.* (a)		8,624		399,119
Ligand Pharmaceuticals, Inc.* (a)		1,584		191,458
MacroGenics, Inc.*		880		18,093
Medivation, Inc.*		2,816		162,765
Merrimack Pharmaceuticals, Inc.* (a)		9,328		66,042
MiMedx Group, Inc.* (a)		704		5,301

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			37

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Biotechnology – (continued)
Myriad Genetics, Inc.*		4,224	$	152,064
NantKwest, Inc.* (a)		352		2,918
Neurocrine Biosciences, Inc.* (a)		3,872		176,486
NewLink Genetics Corp.* (a)		3,168		51,353
Novavax, Inc.* (a)		14,256		74,701
OPKO Health, Inc.* (a)		15,664		168,388
Organovo Holdings, Inc.*		1,408		3,830
Osiris Therapeutics, Inc.*		1,584		8,886
OvaScience, Inc.* (a)		880		7,374
PDL BioPharma, Inc.		9,328		35,167
Portola Pharmaceuticals, Inc.* (a)		704		16,727
Progenics Pharmaceuticals, Inc.* (a)		2,288		12,149
PTC Therapeutics, Inc.* (a)		1,232		9,141
Puma Biotechnology, Inc.* (a)		880		27,007
Regeneron Pharmaceuticals, Inc.*		1,584		596,709
Regulus Therapeutics, Inc.*		1,584		9,251
Repligen Corp.* (a)		1,584		42,198
Rigel Pharmaceuticals, Inc.*		176		498
Sangamo BioSciences, Inc.* (a)		3,344		21,067
Sarepta Therapeutics, Inc.* (a)		1,584		22,477
Seattle Genetics, Inc.* (a)		2,640		93,667
TG Therapeutics, Inc.* (a)		1,584		14,430
United Therapeutics Corp.*		1,936		203,667
Vertex Pharmaceuticals, Inc.*		5,808		489,847
Vitae Pharmaceuticals, Inc.* (a)		1,232		8,858
ZIOPHARM Oncology, Inc.* (a)		1,408		11,067
				16,807,720
Building Products – 0.3%
A.O. Smith Corp.		3,520		271,814
AAON, Inc.(a)		3,520		93,350
American Woodmark Corp.* (a)		1,056		76,919
Apogee Enterprises, Inc.(a)		2,112		87,521
Armstrong World Industries, Inc.*		704		28,730
Builders FirstSource, Inc.* (a)		3,696		40,989


	Shares		Value
Building Products – (continued)
Fortune Brands Home & Security, Inc.(a)		2,464	$	136,530
Gibraltar Industries, Inc.*		1,760		46,552
Griffon Corp.(a)		5,280		83,477
Insteel Industries, Inc.		528		15,307
Lennox International, Inc.(a)		1,936		261,263
Masco Corp.		4,576		140,529
NCI Building Systems, Inc.*		528		7,783
Nortek, Inc.*		880		41,501
Owens Corning(a)		3,872		178,383
Patrick Industries, Inc.* (a)		2,640		121,044
PGT, Inc.* (a)		352		3,686
Ply Gem Holdings, Inc.*		3,520		51,568
Quanex Building Products Corp.(a)		352		6,632
Simpson Manufacturing Co., Inc.(a)		1,408		52,941
Trex Co., Inc.* (a)		2,112		100,214
Universal Forest Products, Inc.		1,408		107,923
USG Corp.* (a)		18,128		489,637
				2,444,293
Capital Markets – 2.0%
Actua Corp.*		2,112		20,022
Affiliated Managers Group, Inc.*		352		59,953
Ameriprise Financial, Inc.(a)		7,392		708,893
Arlington Asset Investment Corp., Class A		17,424		225,467
Artisan Partners Asset Management, Inc., Class A(a)		5,104		164,910
The Bank of New York Mellon Corp.		26,400		1,062,336
BGC Partners, Inc., Class A(a)		40,832		370,755
BlackRock, Inc.(a)		3,168		1,128,853
The Charles Schwab Corp.		24,640		700,022
Cohen & Steers, Inc.		704		27,646
Cowen Group, Inc., Class A* (a)		14,784		51,522
ETRADE Financial Corp.		11,616		292,491
Eaton Vance Corp.(a)		1,936		66,850
Evercore Partners, Inc., Class A		1,760		90,886

See Accompanying Notes to the Financial Statements.


38		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Capital Markets – (continued)
Federated Investors, Inc., Class B(a)		7,920	$	250,272
Financial Engines, Inc.(a)		2,112		68,027
Franklin Resources, Inc.		4,576		170,868
The Goldman Sachs Group, Inc.		14,256		2,339,552
HFF, Inc., Class A(a)		2,640		84,031
Interactive Brokers Group, Inc., Class A(a)		5,104		193,952
INTL. FCStone, Inc.* (a)		1,936		52,853
Invesco Ltd.		19,360		600,354
Investment Technology Group, Inc.(a)		5,456		106,501
Janus Capital Group, Inc.		14,960		218,416
KCG Holdings, Inc., Class A*		11,440		156,728
Ladenburg Thalmann Financial Services, Inc.*		6,688		17,924
Legg Mason, Inc.		2,288		73,468
LPL Financial Holdings, Inc.(a)		1,056		27,878
Morgan Stanley		54,384		1,471,631
Northern Trust Corp.^‡		6,160		437,853
NorthStar Asset Management Group, Inc.(a)		8,800		109,472
Oppenheimer Holdings, Inc., Class A(a)		4,752		72,611
Piper Jaffray Cos.* (a)		7,392		308,320
Raymond James Financial, Inc.(a)		1,936		101,001
SEI Investments Co.(a)		3,168		152,317
State Street Corp.(a)		16,016		997,797
Stifel Financial Corp.* (a)		19,184		631,346
T. Rowe Price Group, Inc.(a)		7,744		583,046
TD Ameritrade Holding Corp.		4,400		131,252
Virtus Investment Partners, Inc.(a)		528		41,300
Waddell & Reed Financial, Inc., Class A(a)		19,888		404,522
Walter Investment Management Corp.* (a)		5,808		42,108
WisdomTree Investments, Inc.(a)		7,744		84,332
				14,900,338


	Shares		Value
Chemicals – 2.4%
A. Schulman, Inc.(a)		4,752	$	132,533
Air Products & Chemicals, Inc.		4,400		641,916
Airgas, Inc.		880		125,347
Albemarle Corp.(a)		4,224		279,460
American Vanguard Corp.* (a)		176		2,913
Ashland, Inc.(a)		1,232		137,491
Balchem Corp.(a)		1,936		118,793
Cabot Corp.		13,376		652,615
Calgon Carbon Corp.		3,872		63,462
Celanese Corp.		4,576		323,523
CF Industries Holdings, Inc.(a)		9,680		320,118
The Chemours Co.(a)		55,792		508,823
Chemtura Corp.*		7,216		200,966
The Dow Chemical Co.		41,536		2,185,209
E.I. du Pont de Nemours & Co.		22,176		1,461,620
Eastman Chemical Co.		7,040		537,715
Ecolab, Inc.		5,632		647,567
Ferro Corp.* (a)		10,032		127,808
Flotek Industries, Inc.* (a)		1,232		11,642
FMC Corp.(a)		6,864		296,937
FutureFuel Corp.		1,408		15,826
HB Fuller Co.		1,936		86,578
Huntsman Corp.(a)		55,440		872,626
Innophos Holdings, Inc.(a)		5,456		201,654
Innospec, Inc.(a)		3,520		170,227
International Flavors & Fragrances, Inc.(a)		1,232		147,187
Intrepid Potash, Inc.* (a)		39,424		50,463
Kronos Worldwide, Inc.(a)		10,384		69,054
LSB Industries, Inc.* (a)		7,568		99,595
LyondellBasell Industries N.V., Class A		11,264		931,195
Minerals Technologies, Inc.(a)		5,632		337,357
Monsanto Co.		9,152		857,359
The Mosaic Co.(a)		16,544		463,066
NewMarket Corp.(a)		176		71,466
Olin Corp.(a)		41,536		905,069
OMNOVA Solutions, Inc.*		2,288		16,359
Platform Specialty Products Corp.* (a)		42,592		438,698
PolyOne Corp.		7,040		253,299
PPG Industries, Inc.		4,928		544,002
Praxair, Inc.		5,104		599,516

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			39

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Chemicals – (continued)
Quaker Chemical Corp.(a)		1,584	$	141,071
RPM International, Inc.		2,288		115,613
The Scotts Miracle-Gro Co., Class A(a)		2,640		186,859
Sensient Technologies Corp.(a)		3,696		248,556
The Sherwin-Williams Co.		1,936		556,232
Stepan Co.		5,104		312,824
Tredegar Corp.		1,408		22,472
Trinseo S.A.*		3,168		135,559
Tronox Ltd., Class A(a)		37,664		274,194
The Valspar Corp.(a)		1,232		131,442
W.R. Grace & Co.*		1,056		80,974
Westlake Chemical Corp.		3,344		167,835
				18,280,685
Commercial Services & Supplies – 1.0%
ABM Industries, Inc.(a)		11,088		356,701
ACCO Brands Corp.* (a)		18,832		179,657
The ADT Corp.		4,928		206,877
ARC Document Solutions, Inc.*		4,752		19,578
Brady Corp., Class A(a)		6,336		167,841
The Brink’s Co.		6,336		214,410
CECO Environmental Corp.		4,576		30,202
Cintas Corp.(a)		2,288		205,417
Copart, Inc.* (a)		1,232		52,779
Covanta Holding Corp.(a)		704		11,447
Deluxe Corp.(a)		4,048		254,133
Ennis, Inc.		6,160		120,366
Essendant, Inc.(a)		4,576		140,895
G&K Services, Inc., Class A(a)		1,408		99,475
Healthcare Services Group, Inc.(a)		5,280		199,848
Herman Miller, Inc.(a)		5,456		164,608
HNI Corp.(a)		3,520		153,894
Interface, Inc.		3,168		53,919
KAR Auction Services, Inc.(a)		5,456		205,146
Kimball International, Inc., Class B		6,864		79,897
Knoll, Inc.		4,400		102,740
Matthews International Corp., Class A		3,520		185,293
McGrath RentCorp		880		21,454


	Shares		Value
Commercial Services & Supplies – (continued)
Mobile Mini, Inc.(a)		2,640	$	85,140
MSA Safety, Inc.(a)		1,232		59,247
Multi-Color Corp.(a)		1,936		115,831
Pitney Bowes, Inc.(a)		11,968		250,969
Quad/Graphics, Inc.		21,824		273,891
R.R. Donnelley & Sons Co.		40,304		701,290
Republic Services, Inc.		6,512		306,520
Rollins, Inc.(a)		2,464		66,208
SP Plus Corp.*		528		11,764
Steelcase, Inc., Class A		10,384		158,460
Stericycle, Inc.* (a)		2,112		201,823
Team, Inc.* (a)		528		15,169
Tetra Tech, Inc.(a)		11,616		341,510
Tyco International PLC(a)		5,104		196,606
U.S. Ecology, Inc.(a)		1,760		79,253
UniFirst Corp.(a)		1,408		152,599
Viad Corp.		1,056		31,416
Waste Connections, Inc.(a)		1,936		130,254
Waste Management, Inc.		10,208		600,128
West Corp.		5,632		120,694
				7,125,349
Communications Equipment – 1.1%
ADTRAN, Inc.(a)		176		3,400
Alliance Fiber Optic Products, Inc.*		704		13,038
Arista Networks, Inc.* (a)		1,232		82,076
Brocade Communications Systems, Inc.		25,520		245,247
CalAmp Corp.* (a)		1,056		15,808
Calix, Inc.*		704		4,879
Ciena Corp.* (a)		5,808		97,749
Cisco Systems, Inc.		171,776		4,722,122
EchoStar Corp., Class A*		3,696		151,240
Extreme Networks, Inc.*		5,632		19,768
F5 Networks, Inc.*		1,056		110,616
Finisar Corp.* (a)		25,168		414,265
Harris Corp.(a)		2,464		197,145
Infinera Corp.*		8,448		100,447
InterDigital, Inc.(a)		2,992		170,484
Ixia*		8,272		83,713
Juniper Networks, Inc.		10,208		238,867
Lumentum Holdings, Inc.*		352		8,906

See Accompanying Notes to the Financial Statements.


40		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Communications Equipment – (continued)
Motorola Solutions, Inc.		2,816	$	211,735
NETGEAR, Inc.*		4,224		179,098
NetScout Systems, Inc.* (a)		3,344		74,437
Palo Alto Networks, Inc.* (a)		1,936		292,084
Plantronics, Inc.		2,640		101,508
Polycom, Inc.*		24,464		292,345
ShoreTel, Inc.*		9,680		59,242
Sonus Networks, Inc.*		1,408		11,630
Ubiquiti Networks, Inc.*		704		25,077
ViaSat, Inc.* (a)		1,936		148,491
Viavi Solutions, Inc.*		42,768		278,420
				8,353,837
Construction & Engineering – 0.3%
AECOM* (a)		7,392		240,166
Aegion Corp.*		6,160		130,777
Argan, Inc.(a)		1,936		66,173
Comfort Systems USA, Inc.		3,344		98,615
Dycom Industries, Inc.* (a)		2,464		173,958
EMCOR Group, Inc.		4,928		238,909
Fluor Corp.		6,512		355,946
Granite Construction, Inc.(a)		2,112		94,174
Great Lakes Dredge & Dock Corp.* (a)		352		1,609
Jacobs Engineering Group, Inc.* (a)		880		39,230
KBR, Inc.(a)		26,224		408,045
MasTec, Inc.* (a)		7,040		159,526
MYR Group, Inc.*		528		13,469
Primoris Services Corp.(a)		2,464		57,633
Tutor Perini Corp.* (a)		3,168		50,118
Valmont Industries, Inc.		352		49,414
				2,177,762
Construction Materials – 0.1%
Eagle Materials, Inc.		1,584		117,406
Headwaters, Inc.*		7,040		140,870
Martin Marietta Materials, Inc.		1,760		297,845
U.S. Concrete, Inc.* (a)		880		54,349
Vulcan Materials Co.		3,168		340,972
				951,442


	Shares		Value
Consumer Finance – 0.9%
Ally Financial, Inc.* (a)		22,880	$	407,493
American Express Co.		17,072		1,117,021
Capital One Financial Corp.		17,072		1,235,842
Cash America International, Inc.(a)		5,456		201,654
Credit Acceptance Corp.*		880		172,717
Discover Financial Services		16,544		930,931
Encore Capital Group, Inc.* (a)		2,992		84,225
First Cash Financial Services, Inc.(a)		176		8,048
Green Dot Corp., Class A* (a)		2,464		54,775
Navient Corp.(a)		704		9,624
Nelnet, Inc., Class A		9,152		383,560
OneMain Holdings, Inc.* (a)		1,760		56,003
PRA Group, Inc.* (a)		13,904		461,335
SLM Corp.* (a)		124,960		845,979
Synchrony Financial*		33,616		1,027,641
World Acceptance Corp.*		1,056		45,820
				7,042,668
Containers & Packaging – 0.5%
AptarGroup, Inc.(a)		880		66,880
Avery Dennison Corp.		1,760		127,794
Ball Corp.(a)		2,288		163,317
Bemis Co., Inc.(a)		4,048		203,129
Berry Plastics Group, Inc.* (a)		8,272		297,957
Crown Holdings, Inc.*		3,696		195,740
Graphic Packaging Holding Co.		18,656		247,752
International Paper Co.(a)		18,128		784,398
Myers Industries, Inc.		1,936		26,097
Owens-Illinois, Inc.*		46,992		867,472
Packaging Corp. of America(a)		2,112		137,027
Sealed Air Corp.		3,872		183,378
Silgan Holdings, Inc.(a)		3,872		196,465
Sonoco Products Co.		1,584		74,274
WestRock Co.		11,968		500,861
				4,072,541
Distributors – 0.1%
Core-Mark Holding Co., Inc.(a)		2,288		186,838
Genuine Parts Co.(a)		2,288		219,579
LKQ Corp.*		7,920		253,836
Pool Corp.(a)		2,992		261,531
				921,784

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			41

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Diversified Consumer Services – 0.3%
Apollo Education Group, Inc.*		19,888	$	155,127
Bridgepoint Education, Inc.*		6,160		58,766
Bright Horizons Family Solutions, Inc.* (a)		2,640		173,237
Capella Education Co.		1,408		77,877
Career Education Corp.* (a)		13,024		69,548
Carriage Services, Inc.(a)		2,816		68,795
Chegg, Inc.* (a)		5,808		26,368
DeVry Education Group, Inc.		8,976		155,734
Graham Holdings Co., Class B(a)		880		419,355
Grand Canyon Education, Inc.* (a)		3,696		161,626
H&R Block, Inc.(a)		4,928		99,743
Houghton Mifflin Harcourt Co.* (a)		27,984		573,952
LifeLock, Inc.*		352		4,097
Regis Corp.*		10,560		144,355
Service Corp. International(a)		8,624		230,002
Strayer Education, Inc.* (a)		2,816		139,786
Weight Watchers International, Inc.* (a)		2,112		27,350
				2,585,718
Diversified Financial Services – 1.7%
Berkshire Hathaway, Inc., Class B*		66,704		9,704,098
CBOE Holdings, Inc.(a)		3,872		239,909
CME Group, Inc.		7,392		679,399
FactSet Research Systems, Inc.(a)		704		106,128
FNFV Group* (a)		1,408		15,164
Intercontinental Exchange, Inc.		2,464		591,549
Leucadia National Corp.(a)		2,816		46,974
MarketAxess Holdings, Inc.(a)		2,464		302,481
Moody’s Corp.		4,048		387,474
Morningstar, Inc.		176		14,643
MSCI, Inc.		2,288		173,751
Nasdaq, Inc.(a)		1,760		108,610
S&P Global, Inc.		5,280		564,168
Voya Financial, Inc.		3,872		125,724
				13,060,072


	Shares		Value
Diversified Telecommunication Services – 2.4%
8x8, Inc.* (a)		5,632	$	63,867
AT&T, Inc.		209,616		8,137,293
Atlantic Tele-Network, Inc.		1,760		126,562
CenturyLink, Inc.(a)		24,816		768,055
Cincinnati Bell, Inc.*		13,552		51,769
Cogent Communications Holdings, Inc.(a)		2,640		102,168
Consolidated Communications Holdings, Inc.(a)		2,464		58,249
Frontier Communications Corp.(a)		58,608		325,860
General Communication, Inc., Class A*		3,696		62,462
Globalstar, Inc.* (a)		8,800		17,160
IDT Corp., Class B		2,640		40,498
Inteliquent, Inc.(a)		1,584		26,279
Iridium Communications, Inc.* (a)		17,776		143,452
Level 3 Communications, Inc.* (a)		6,864		358,713
Lumos Networks Corp.*		1,584		20,196
ORBCOMM, Inc.*		2,288		22,674
pdvWireless, Inc.* (a)		528		21,321
SBA Communications Corp., Class A*		2,112		217,620
Verizon Communications, Inc.		138,512		7,055,801
Vonage Holdings Corp.*		24,112		112,603
Windstream Holdings, Inc.(a)		7,920		68,746
				17,801,348
Electric Utilities – 2.2%
ALLETE, Inc.(a)		8,096		454,914
American Electric Power Co., Inc.		14,256		905,256
Duke Energy Corp.		25,872		2,038,196
Edison International		9,328		659,583
El Paso Electric Co.(a)		5,104		230,190
The Empire District Electric Co.(a)		10,912		367,407
Entergy Corp.		8,272		621,889
Eversource Energy		11,616		655,607
Exelon Corp.		30,272		1,062,245
FirstEnergy Corp.		10,560		344,150
Great Plains Energy, Inc.(a)		1,936		60,461

See Accompanying Notes to the Financial Statements.


42		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Electric Utilities – (continued)
Hawaiian Electric Industries, Inc.		25,168	$	822,742
IDACORP, Inc.(a)		3,696		268,810
ITC Holdings Corp.(a)		1,936		85,320
MGE Energy, Inc.(a)		1,936		96,510
NextEra Energy, Inc.		10,384		1,220,951
OGE Energy Corp.(a)		1,056		31,247
Otter Tail Corp.(a)		1,232		35,629
PG&E Corp.		19,712		1,147,238
Pinnacle West Capital Corp.		2,464		179,010
PNM Resources, Inc.(a)		17,072		540,841
Portland General Electric Co.(a)		17,776		706,063
PPL Corp.		27,456		1,033,444
The Southern Co.(a)		34,144		1,710,614
Westar Energy, Inc.		1,408		72,667
Xcel Energy, Inc.		21,472		859,524
				16,210,508
Electrical Equipment – 0.7%
Acuity Brands, Inc.(a)		1,584		386,322
AMETEK, Inc.		3,872		186,204
AZZ, Inc.		1,408		77,327
Babcock & Wilcox Enterprises, Inc.*		6,864		156,842
Eaton Corp. PLC		13,024		824,028
Emerson Electric Co.		19,360		1,057,637
Encore Wire Corp.		1,232		47,124
EnerSys		3,872		226,009
Franklin Electric Co., Inc.		1,584		50,039
Generac Holdings, Inc.* (a)		15,664		597,112
General Cable Corp.(a)		4,048		63,311
Hubbell, Inc.		704		74,455
Plug Power, Inc.* (a)		8,096		16,678
Power Solutions International, Inc.* (a)		2,288		29,630
PowerSecure International, Inc.* (a)		2,816		52,715
Regal Beloit Corp.		13,200		850,344
Rockwell Automation, Inc.(a)		1,760		199,707
Sensata Technologies Holding N.V.*		2,464		92,819
SolarCity Corp.* (a)		1,232		37,354
				5,025,657


	Shares		Value
Electronic Equipment, Instruments & Components – 1.2%
Amphenol Corp., Class A(a)		6,512	$	363,565
Anixter International, Inc.* (a)		5,104		317,979
Arrow Electronics, Inc.* (a)		1,760		109,296
Avnet, Inc.		2,640		108,557
AVX Corp.		9,328		123,316
Badger Meter, Inc.		1,056		75,325
Belden, Inc.		2,112		133,352
Benchmark Electronics, Inc.*		9,680		187,986
Checkpoint Systems, Inc.*		2,112		21,373
Cognex Corp.(a)		6,512		231,371
Coherent, Inc.* (a)		1,056		98,630
Corning, Inc.		48,752		910,200
CTS Corp.		5,632		93,322
Daktronics, Inc.(a)		704		6,125
Dolby Laboratories, Inc., Class A(a)		704		33,517
DTS, Inc.* (a)		352		7,681
ePlus, Inc.* (a)		1,760		141,486
Fabrinet* (a)		7,040		225,069
FEI Co.(a)		2,112		188,010
Fitbit, Inc., Class A* (a)		1,760		32,120
Flextronics International Ltd.*		7,216		87,674
FLIR Systems, Inc.		2,816		85,071
GSI Group, Inc.*		2,640		38,412
II-VI, Inc.*		4,576		95,501
Ingram Micro, Inc., Class A		9,856		344,467
Insight Enterprises, Inc.*		10,384		256,589
InvenSense, Inc.* (a)		1,760		13,517
IPG Photonics Corp.* (a)		2,464		213,555
Jabil Circuit, Inc.		528		9,166
Littelfuse, Inc.		1,584		184,504
Mercury Systems, Inc.*		2,640		55,493
Mesa Laboratories, Inc.(a)		176		17,737
Methode Electronics, Inc.(a)		2,992		88,952
MTS Systems Corp.		880		49,474
National Instruments Corp.(a)		1,056		29,114
Newport Corp.*		2,816		64,740
OSI Systems, Inc.* (a)		1,232		62,697
PC Connection, Inc.		3,168		75,303
Plexus Corp.* (a)		4,576		191,094
QLogic Corp.*		13,376		175,092
Rofin-Sinar Technologies, Inc.* (a)		1,232		39,658

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			43

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Electronic Equipment, Instruments & Components – (continued)
Rogers Corp.* (a)		1,408	$	80,763
Sanmina Corp.* (a)		20,768		491,163
ScanSource, Inc.* (a)		5,632		229,110
SYNNEX Corp.(a)		7,040		581,293
TE Connectivity Ltd.		8,624		512,956
Tech Data Corp.*		10,032		689,098
Trimble Navigation Ltd.*		4,224		101,165
TTM Technologies, Inc.*		1,760		11,475
Universal Display Corp.*		1,056		61,575
VeriFone Systems, Inc.* (a)		6,512		185,332
Vishay Intertechnology, Inc.(a)		45,056		547,881
Zebra Technologies Corp., Class A* (a)		3,872		242,232
				9,320,133
Energy Equipment & Services – 1.6%
Archrock, Inc.		36,432		358,855
Atwood Oceanics, Inc.(a)		25,696		248,223
Baker Hughes, Inc.		6,864		331,943
Bristow Group, Inc.(a)		14,080		322,714
C&J Energy Services Ltd.* (a)		11,440		16,588
CARBO Ceramics, Inc.(a)		11,792		175,111
Core Laboratories N.V.(a)		880		117,621
Diamond Offshore Drilling, Inc.(a)		22,352		542,260
Dril-Quip, Inc.* (a)		10,384		673,091
FMC Technologies, Inc.*		2,992		91,226
Halliburton Co.		15,664		647,080
Helix Energy Solutions Group, Inc.* (a)		31,856		274,917
Helmerich & Payne, Inc.(a)		6,512		430,574
Matrix Service Co.*		6,160		116,055
McDermott International, Inc.*		55,440		251,698
Nabors Industries Ltd.		84,656		829,629
National Oilwell Varco, Inc.(a)		8,624		310,809
Natural Gas Services Group, Inc.*		704		16,185
Newpark Resources, Inc.* (a)		44,528		207,946
Noble Corp. PLC(a)		70,048		786,639
Oceaneering International, Inc.(a)		7,216		264,466
Patterson-UTI Energy, Inc.(a)		25,696		507,496
RPC, Inc.(a)		4,928		74,511


	Shares		Value
Energy Equipment & Services – (continued)
Schlumberger Ltd.		31,163	$	2,503,600
SEACOR Holdings, Inc.*		3,168		186,183
Superior Energy Services, Inc.(a)		46,816		789,318
Tesco Corp.		16,896		159,836
TETRA Technologies, Inc.*		1,936		13,939
Tidewater, Inc.(a)		19,184		168,052
U.S. Silica Holdings, Inc.		528		13,490
Unit Corp.*		19,712		249,554
Weatherford International PLC* (a)		18,656		151,673
				11,831,282
Food & Staples Retailing – 1.7%
The Andersons, Inc.(a)		2,464		82,569
Casey’s General Stores, Inc.(a)		1,936		216,832
The Chefs’ Warehouse, Inc.*		176		3,391
Costco Wholesale Corp.(a)		10,032		1,486,040
CVS Health Corp.		26,752		2,688,576
Ingles Markets, Inc., Class A(a)		2,112		76,180
The Kroger Co.		24,288		859,552
PriceSmart, Inc.(a)		704		60,924
Rite Aid Corp.* (a)		42,416		341,449
SpartanNash Co.(a)		7,744		214,509
Sprouts Farmers Market, Inc.* (a)		6,512		182,792
SUPERVALU, Inc.*		48,928		246,108
Sysco Corp.		11,792		543,257
United Natural Foods, Inc.* (a)		2,992		106,725
Walgreens Boots Alliance, Inc.		18,656		1,479,048
Wal-Mart Stores, Inc.(a)		54,736		3,660,196
Weis Markets, Inc.		176		8,011
Whole Foods Market, Inc.(a)		3,520		102,362
				12,358,521
Food Products – 1.5%
Archer-Daniels-Midland Co.		16,368		653,738
B&G Foods, Inc.(a)		1,232		50,771
Blue Buffalo Pet Products, Inc.*		2,640		65,366
Bunge Ltd.		3,168		198,000
Calavo Growers, Inc.		1,232		70,433
Cal-Maine Foods, Inc.(a)		8,272		419,887
Campbell Soup Co.(a)		3,520		217,219
ConAgra Foods, Inc.		12,672		564,664
Dean Foods Co.(a)		14,784		254,728

See Accompanying Notes to the Financial Statements.


44		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Food Products – (continued)
Flowers Foods, Inc.(a)		1,760	$	33,722
Fresh Del Monte Produce, Inc.		9,152		395,916
Freshpet, Inc.* (a)		704		5,829
General Mills, Inc.		11,968		734,117
The Hain Celestial Group, Inc.* (a)		4,752		198,919
The Hershey Co.(a)		4,400		409,684
Hormel Foods Corp.(a)		5,632		217,114
Ingredion, Inc.		1,408		162,047
J&J Snack Foods Corp.		1,232		124,592
The JM Smucker Co.		1,584		201,136
Kellogg Co.		4,928		378,520
The Kraft Heinz Co.		13,376		1,044,264
Lancaster Colony Corp.(a)		1,232		143,528
Landec Corp.* (a)		2,288		25,740
McCormick & Co., Inc. (Non-Voting)(a)		2,464		231,074
Mead Johnson Nutrition Co.		2,992		260,753
Mondelez International, Inc., Class A		36,960		1,587,802
Omega Protein Corp.* (a)		3,872		71,981
Pilgrim’s Pride Corp.*		4,576		123,140
Pinnacle Foods, Inc.		4,576		194,892
Post Holdings, Inc.* (a)		4,048		290,808
Sanderson Farms, Inc.(a)		2,816		258,340
Snyder’s-Lance, Inc.		5,287		169,025
Tootsie Roll Industries, Inc.(a)		1,583		56,418
TreeHouse Foods, Inc.*		1,936		171,142
Tyson Foods, Inc., Class A		8,800		579,216
The WhiteWave Foods Co.* (a)		7,744		311,386
				10,875,911
Gas Utilities – 0.5%
AGL Resources, Inc.		4,928		324,558
Atmos Energy Corp.		1,232		89,382
Chesapeake Utilities Corp.(a)		2,464		146,657
New Jersey Resources Corp.(a)		21,296		759,841
Northwest Natural Gas Co.(a)		176		9,071
ONE Gas, Inc.		4,576		267,559
Piedmont Natural Gas Co., Inc.(a)		4,400		263,120


	Shares		Value
Gas Utilities – (continued)
Questar Corp.		1,408	$	35,298
South Jersey Industries, Inc.(a)		9,856		275,081
Southwest Gas Corp.(a)		8,624		559,784
Spire, Inc.(a)		7,920		506,563
UGI Corp.(a)		3,344		134,563
WGL Holdings, Inc.(a)		3,872		262,870
				3,634,347
Health Care Equipment & Supplies – 1.8%
Abaxis, Inc.(a)		1,232		55,834
Abbott Laboratories		32,736		1,273,430
ABIOMED, Inc.* (a)		2,464		239,353
Accuray, Inc.*		2,288		12,264
Alere, Inc.*		5,632		219,648
Align Technology, Inc.* (a)		3,520		254,109
Analogic Corp.(a)		352		27,805
AngioDynamics, Inc.*		2,288		28,028
Anika Therapeutics, Inc.* (a)		880		40,181
AtriCure, Inc.*		1,056		16,790
Baxter International, Inc.		8,624		381,353
Becton Dickinson and Co.		3,872		624,399
Boston Scientific Corp.*		25,872		567,114
C.R. Bard, Inc.		1,408		298,735
Cantel Medical Corp.		2,640		176,854
Cardiovascular Systems, Inc.* (a)		1,232		17,223
Cerus Corp.* (a)		2,640		16,526
CONMED Corp.		4,224		174,958
The Cooper Cos., Inc.(a)		704		107,768
Cynosure, Inc., Class A*		1,760		86,134
DENTSPLY SIRONA, Inc.(a)		4,224		251,751
DexCom, Inc.* (a)		3,520		226,618
Edwards Lifesciences Corp.*		4,928		523,403
Globus Medical, Inc., Class A*		4,752		118,990
Greatbatch, Inc.* (a)		3,344		116,371
Haemonetics Corp.* (a)		2,640		85,615
Halyard Health, Inc.* (a)		9,504		267,633
Hill-Rom Holdings, Inc.		4,752		229,759
Hologic, Inc.*		6,512		218,738
ICU Medical, Inc.*		880		87,419
IDEXX Laboratories, Inc.* (a)		2,112		178,147
Insulet Corp.* (a)		2,112		70,330
Integra LifeSciences Holdings Corp.* (a)		3,168		224,358

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			45

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Health Care Equipment & Supplies – (continued)
Intuitive Surgical, Inc.*		704	$	440,957
Invacare Corp.(a)		2,816		31,652
Masimo Corp.*		3,872		167,851
Medtronic PLC		32,384		2,563,194
Merit Medical Systems, Inc.*		3,872		78,408
Natus Medical, Inc.* (a)		2,464		78,528
Neogen Corp.* (a)		2,288		108,085
NuVasive, Inc.* (a)		3,520		186,349
NxStage Medical, Inc.* (a)		3,520		56,742
OraSure Technologies, Inc.*		704		5,055
Orthofix International N.V.*		4,224		184,842
Quidel Corp.*		1,232		21,314
ResMed, Inc.		2,464		137,491
Second Sight Medical Products, Inc.* (a)		2,464		11,655
The Spectranetics Corp.* (a)		2,992		50,864
St. Jude Medical, Inc.		5,104		388,925
STAAR Surgical Co.*		1,232		9,499
Stryker Corp.		5,808		633,130
SurModics, Inc.*		352		7,082
Teleflex, Inc.		2,112		329,007
Varian Medical Systems, Inc.* (a)		1,760		142,877
Vascular Solutions, Inc.*		1,760		61,512
West Pharmaceutical Services, Inc.(a)		4,048		288,218
Wright Medical Group N.V.* (a)		4,752		89,243
Zeltiq Aesthetics, Inc.*		176		5,262
Zimmer Biomet Holdings, Inc.(a)		3,344		387,135
				13,682,515
Health Care Providers & Services – 2.6%
Acadia Healthcare Co., Inc.* (a)		3,168		200,186
Aceto Corp.(a)		3,872		86,849
Addus HomeCare Corp.* (a)		352		6,512
Aetna, Inc.		10,736		1,205,331
Air Methods Corp.*		1,584		58,576
Almost Family, Inc.* (a)		1,584		66,544
Amedisys, Inc.* (a)		4,576		235,618


	Shares		Value
Health Care Providers & Services – (continued)
AmerisourceBergen Corp.		4,048	$	344,485
AMN Healthcare Services, Inc.* (a)		5,632		199,992
Amsurg Corp.* (a)		12,320		997,674
Anthem, Inc.		7,920		1,114,898
BioTelemetry, Inc.* (a)		176		2,769
Brookdale Senior Living, Inc.*		1,936		35,739
Capital Senior Living Corp.* (a)		1,408		28,245
Cardinal Health, Inc.		7,216		566,167
Centene Corp.*		8,345		517,056
Chemed Corp.(a)		1,408		182,730
Cigna Corp.		5,632		780,257
Community Health Systems, Inc.*		13,552		258,572
CorVel Corp.* (a)		528		23,866
DaVita HealthCare Partners, Inc.*		3,520		260,128
The Ensign Group, Inc.(a)		6,336		142,940
ExamWorks Group, Inc.* (a)		3,696		133,241
Express Scripts Holding Co.* (a)		21,648		1,596,107
HCA Holdings, Inc.*		10,032		808,780
HealthSouth Corp.(a)		6,864		284,582
Healthways, Inc.* (a)		3,872		45,109
Henry Schein, Inc.* (a)		1,760		296,912
Humana, Inc.		2,992		529,794
Kindred Healthcare, Inc.		15,488		228,603
Laboratory Corp. of America Holdings*		2,288		286,732
LHC Group, Inc.*		1,936		78,098
LifePoint Health, Inc.* (a)		11,440		772,886
Magellan Health, Inc.* (a)		3,168		223,217
McKesson Corp.		4,928		827,017
MEDNAX, Inc.*		3,520		250,941
Molina Healthcare, Inc.*		3,168		163,976
Owens & Minor, Inc.(a)		5,808		211,353
Patterson Cos., Inc.(a)		2,464		106,814
PharMerica Corp.* (a)		5,984		141,462
Premier, Inc., Class A* (a)		6,160		208,270
The Providence Service Corp.* (a)		2,112		105,262
Quest Diagnostics, Inc.		3,696		277,828
Select Medical Holdings Corp.* (a)		16,192		216,649

See Accompanying Notes to the Financial Statements.


46		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Health Care Providers & Services – (continued)
Surgical Care Affiliates, Inc.* (a)		2,464	$	119,134
Team Health Holdings, Inc.*		2,640		110,431
Tenet Healthcare Corp.* (a)		25,344		803,151
Triple-S Management Corp., Class B*		6,336		164,989
U.S. Physical Therapy, Inc.		1,056		52,652
UnitedHealth Group, Inc.		20,944		2,757,906
Universal Health Services, Inc., Class B		1,232		164,694
VCA, Inc.*		4,400		277,068
WellCare Health Plans, Inc.* (a)		3,168		285,088
				19,843,880
Health Care Technology – 0.1%
Allscripts Healthcare Solutions, Inc.* (a)		7,920		106,128
athenahealth, Inc.* (a)		1,056		140,765
Cerner Corp.* (a)		7,568		424,868
HealthStream, Inc.* (a)		528		11,943
IMS Health Holdings, Inc.*		1,408		37,509
Medidata Solutions, Inc.* (a)		3,168		138,220
Omnicell, Inc.* (a)		2,992		95,325
Vocera Communications, Inc.*		3,696		43,317
				998,075
Hotels, Restaurants & Leisure – 1.8%
Aramark		1,760		58,978
Belmond Ltd., Class A* (a)		3,520		32,243
BJ’s Restaurants, Inc.*		1,760		78,496
Bloomin’ Brands, Inc.(a)		30,448		569,378
Bob Evans Farms, Inc.(a)		1,232		56,105
Boyd Gaming Corp.*		7,920		147,629
Brinker International, Inc.(a)		11,088		513,596
Buffalo Wild Wings, Inc.* (a)		1,408		188,193
Caesars Entertainment Corp.* (a)		4,224		28,850
Carnival Corp.		9,504		466,171
The Cheesecake Factory, Inc.(a)		2,816		143,644
Chipotle Mexican Grill, Inc.* (a)		528		222,272


	Shares		Value
Hotels, Restaurants & Leisure – (continued)
Choice Hotels International, Inc.(a)		2,640	$	133,742
Churchill Downs, Inc.		880		118,078
Cracker Barrel Old Country Store, Inc.(a)		1,760		257,682
Darden Restaurants, Inc.(a)		3,168		197,208
Denny’s Corp.* (a)		10,208		100,957
Diamond Resorts International, Inc.* (a)		2,640		55,994
DineEquity, Inc.(a)		1,232		105,952
Domino’s Pizza, Inc.(a)		2,640		319,123
Dunkin’ Brands Group, Inc.		2,112		98,208
El Pollo Loco Holdings, Inc.* (a)		2,288		30,179
Fiesta Restaurant Group, Inc.* (a)		176		5,651
Hilton Worldwide Holdings, Inc.(a)		12,144		267,775
Hyatt Hotels Corp., Class A* (a)		704		33,708
International Speedway Corp., Class A(a)		1,408		47,154
Interval Leisure Group, Inc.(a)		352		4,970
Isle of Capri Casinos, Inc.*		2,816		41,958
Jack in the Box, Inc.		2,992		202,110
Krispy Kreme Doughnuts, Inc.*		3,168		55,155
La Quinta Holdings, Inc.* (a)		7,040		89,901
Las Vegas Sands Corp.		6,512		294,017
The Marcus Corp.		3,520		68,112
Marriott International, Inc., Class A(a)		4,752		333,068
Marriott Vacations Worldwide Corp.(a)		2,992		187,419
McDonald’s Corp.		19,712		2,493,371
MGM Resorts International*		8,800		187,440
Norwegian Cruise Line Holdings Ltd.* (a)		2,464		120,465
Panera Bread Co., Class A* (a)		352		75,501
Papa John’s International, Inc.(a)		2,816		159,357
Penn National Gaming, Inc.*		5,456		88,005
Pinnacle Entertainment, Inc.*		4,224		46,633
Popeyes Louisiana Kitchen, Inc.* (a)		1,584		85,156
Red Robin Gourmet Burgers, Inc.*		1,056		68,492

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			47

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Hotels, Restaurants & Leisure – (continued)
Royal Caribbean Cruises Ltd.		3,872	$	299,693
Ruth’s Hospitality Group, Inc.		2,464		39,128
Scientific Games Corp., Class A* (a)		6,512		64,599
Six Flags Entertainment Corp.		2,640		158,532
Sonic Corp.(a)		4,400		151,228
Starbucks Corp.		32,032		1,801,159
Starwood Hotels & Resorts Worldwide, Inc.		3,168		259,396
Texas Roadhouse, Inc.(a)		4,400		179,168
Vail Resorts, Inc.(a)		1,936		250,983
The Wendy’s Co.		16,192		175,845
Wyndham Worldwide Corp.(a)		2,464		174,821
Wynn Resorts Ltd.(a)		1,232		108,786
Yum! Brands, Inc.		8,096		644,118
				13,185,552
Household Durables – 0.8%
Beazer Homes USA, Inc.*		18,832		154,799
CalAtlantic Group, Inc.(a)		14,256		461,467
Cavco Industries, Inc.* (a)		528		46,300
Dr. Horton, Inc.		9,152		275,109
Ethan Allen Interiors, Inc.		528		17,973
Garmin Ltd.(a)		704		30,012
GoPro, Inc., Class A* (a)		6,160		77,862
Harman International Industries, Inc.		1,056		81,059
Helen of Troy Ltd.* (a)		2,288		227,725
Hovnanian Enterprises, Inc., Class A*		1,408		2,351
iRobot Corp.* (a)		1,232		46,052
KB Home(a)		10,384		140,911
La-Z-Boy, Inc.		3,872		100,169
Leggett & Platt, Inc.		2,112		104,101
Lennar Corp., Class A(a)		4,048		183,415
LGI Homes, Inc.* (a)		4,224		118,314
Libbey, Inc.		5,632		104,755
M/I Homes, Inc.* (a)		1,056		21,226
MDC Holdings, Inc.		3,520		86,627
Meritage Homes Corp.*		5,104		173,689
Mohawk Industries, Inc.*		1,760		339,029


	Shares		Value
Household Durables – (continued)
NACCO Industries, Inc., Class A		528	$	31,427
Newell Brands, Inc.		8,363		380,843
NVR, Inc.*		176		292,387
PulteGroup, Inc.(a)		19,360		356,030
Tempur Sealy International, Inc.* (a)		3,344		202,881
Toll Brothers, Inc.*		5,808		158,558
TRI Pointe Group, Inc.* (a)		23,584		273,574
Tupperware Brands Corp.(a)		13,904		807,405
Universal Electronics, Inc.* (a)		2,464		163,634
WCI Communities, Inc.* (a)		3,168		50,625
Whirlpool Corp.		3,696		643,621
ZAGG, Inc.*		7,040		56,390
				6,210,320
Household Products – 1.2%
Central Garden & Pet Co., Class A* (a)		8,448		137,618
Church & Dwight Co., Inc.(a)		2,992		277,358
The Clorox Co.		2,816		352,648
Colgate-Palmolive Co.		19,536		1,385,493
HRG Group, Inc.* (a)		18,304		263,577
Kimberly-Clark Corp.		9,504		1,189,806
The Procter & Gamble Co.		62,832		5,034,100
Spectrum Brands Holdings, Inc.(a)		1,936		219,930
WD-40 Co.(a)		1,232		126,034
				8,986,564
Independent Power and Renewable Electricity Producers – 0.2%
AES Corp.(a)		7,040		78,566
Calpine Corp.*		23,408		369,378
NRG Energy, Inc.(a)		2,816		42,522
NRG Yield, Inc., Class C		14,960		242,053
Ormat Technologies, Inc.		2,640		114,576
Pattern Energy Group, Inc.(a)		5,456		114,576
Talen Energy Corp.* (a)		39,776		463,788
TerraForm Global, Inc., Class A(a)		11,264		32,778
TerraForm Power, Inc., Class A* (a)		5,280		56,390
Vivint Solar, Inc.*		1,584		5,291
				1,519,918

See Accompanying Notes to the Financial Statements.


48		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Industrial Conglomerates – 1.5%
3M Co.		14,960	$	2,504,005
Carlisle Cos., Inc.		1,408		143,475
Danaher Corp.		12,320		1,191,960
General Electric Co.		220,352		6,775,824
Roper Technologies, Inc.(a)		2,288		402,894
				11,018,158
Insurance – 4.0%
Aflac, Inc.(a)		12,320		849,710
Alleghany Corp.*		352		183,491
Allied World Assurance Co. Holdings AG		19,888		707,615
The Allstate Corp.		13,376		870,109
Ambac Financial Group, Inc.*		5,984		97,120
American Equity Investment Life Holding Co.		18,480		258,720
American Financial Group, Inc.		1,232		85,144
American International Group, Inc.		43,296		2,416,783
American National Insurance Co.		2,640		306,557
AMERISAFE, Inc.(a)		1,584		85,346
AmTrust Financial Services, Inc.(a)		7,392		183,691
Aon PLC		6,512		684,542
Arch Capital Group Ltd.*		4,400		310,156
Argo Group International Holdings Ltd.		8,272		454,712
Arthur J Gallagher & Co.		6,336		291,709
Aspen Insurance Holdings Ltd.		17,248		799,445
Assurant, Inc.(a)		2,288		193,496
Assured Guaranty Ltd.		7,744		200,337
Axis Capital Holdings Ltd.		3,344		178,135
Brown & Brown, Inc.(a)		3,344		117,408
Chubb Ltd.		17,776		2,095,079
Cincinnati Financial Corp.(a)		4,400		290,444
CNO Financial Group, Inc.(a)		43,824		805,047
Employers Holdings, Inc.(a)		2,464		73,181
Endurance Specialty Holdings Ltd.		4,400		281,512
Enstar Group Ltd.* (a)		3,168		501,938
Erie Indemnity Co., Class A		176		16,613


	Shares		Value
Insurance – (continued)
Everest Re Group Ltd.		1,408	$	260,339
FBL Financial Group, Inc., Class A(a)		2,640		159,641
Federated National Holding Co.		528		10,058
Fidelity & Guaranty Life(a)		4,928		130,296
First American Financial Corp.(a)		7,744		278,939
FNF Group		7,040		224,576
Genworth Financial, Inc., Class A* (a)		153,296		525,805
The Hanover Insurance Group, Inc.		10,912		935,813
The Hartford Financial Services Group, Inc.		11,264		499,896
HCI Group, Inc.		1,760		52,730
Heritage Insurance Holdings, Inc.(a)		3,872		51,459
Horace Mann Educators Corp.		9,856		306,522
Infinity Property & Casualty Corp.		2,288		183,406
Kemper Corp.(a)		14,432		446,815
Lincoln National Corp.		5,632		244,710
Loews Corp.(a)		13,552		537,743
Maiden Holdings Ltd.(a)		11,440		139,911
Markel Corp.*		352		316,487
Marsh & McLennan Cos., Inc.		11,616		733,550
MBIA, Inc.* (a)		27,104		211,411
Mercury General Corp.(a)		7,392		391,037
MetLife, Inc.		36,432		1,643,083
National General Holdings Corp.		12,672		255,848
National Western Life Group, Inc., Class A		528		114,418
The Navigators Group, Inc.*		2,640		218,090
Old Republic International Corp.		15,312		283,119
The Phoenix Cos., Inc.*		880		32,569
Primerica, Inc.(a)		11,616		575,689
Principal Financial Group, Inc.		6,160		262,909
ProAssurance Corp.		4,400		210,012
The Progressive Corp.		15,664		510,646
Prudential Financial, Inc.		13,728		1,065,842

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			49

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Insurance – (continued)
Reinsurance Group of America, Inc.		1,056	$	100,552
RenaissanceRe Holdings Ltd.(a)		1,584		175,681
RLI Corp.(a)		2,816		175,099
Safety Insurance Group, Inc.(a)		2,112		119,560
Selective Insurance Group, Inc.		10,912		378,756
Stewart Information Services Corp.(a)		2,816		98,053
Third Point Reinsurance Ltd.*		2,992		34,049
Torchmark Corp.(a)		3,872		224,150
The Travelers Cos., Inc.		11,792		1,295,941
United Fire Group, Inc.		4,224		189,320
Universal Insurance Holdings, Inc.(a)		5,808		102,279
Unum Group(a)		7,744		264,922
Validus Holdings Ltd.		22,880		1,054,539
W.R. Berkley Corp.		2,464		137,984
White Mountains Insurance Group Ltd.		176		146,080
Willis Towers Watson PLC		1,760		219,824
XL Group PLC		12,672		414,755
				30,282,953
Internet & Catalog Retail – 1.3%
Amazon.com, Inc.*		8,976		5,920,480
Etsy, Inc.*		2,640		23,179
Expedia, Inc.(a)		2,288		264,882
Groupon, Inc.* (a)		7,920		28,671
HSN, Inc.(a)		1,408		74,666
Lands’ End, Inc.* (a)		528		12,846
Liberty Interactive Corp. QVC Group, Class A*		10,736		281,283
Liberty TripAdvisor Holdings, Inc., Class A* (a)		6,688		147,537
Netflix, Inc.* (a)		9,856		887,336
Nutrisystem, Inc.(a)		3,168		69,760
Overstock.com, Inc.*		1,936		28,246
PetMed Express, Inc.(a)		704		12,883
The Priceline Group, Inc.*		1,232		1,655,389
Shutterfly, Inc.*		1,408		64,740
TripAdvisor, Inc.* (a)		2,288		147,782
Wayfair, Inc., Class A*		4,928		186,032
				9,805,712


	Shares		Value
Internet Software & Services – 2.8%
Akamai Technologies, Inc.*		3,168	$	161,536
Alphabet, Inc., Class A*		5,104		3,613,020
Alphabet, Inc., Class C*		8,624		5,976,518
Apigee Corp.*		352		3,414
Bankrate, Inc.* (a)		8,272		75,606
Box, Inc., Class A* (a)		1,232		15,930
Carbonite, Inc.*		704		5,308
Cimpress N.V.*		2,464		216,512
comScore, Inc.*		2,992		91,615
Cornerstone OnDemand, Inc.* (a)		1,584		54,410
CoStar Group, Inc.* (a)		1,408		277,812
Demandware, Inc.* (a)		1,584		72,991
DHI Group, Inc.*		4,400		31,284
EarthLink Holdings Corp.(a)		21,824		126,797
eBay, Inc.*		35,552		868,535
Endurance International Group Holdings, Inc.*		11,264		120,637
Envestnet, Inc.* (a)		1,584		49,706
Everyday Health, Inc.*		3,696		21,437
Facebook, Inc., Class A*		52,800		6,208,224
GrubHub, Inc.* (a)		1,056		27,688
IAC/InterActiveCorp(a)		1,056		48,935
inContact, Inc.*		3,696		34,410
Internap Corp.*		2,992		6,822
Intralinks Holdings, Inc.* (a)		4,928		43,908
j2 Global, Inc.(a)		3,168		201,231
LinkedIn Corp., Class A*		2,112		264,655
LogMeIn, Inc.* (a)		1,584		94,565
MercadoLibre, Inc.		352		43,961
Monster Worldwide, Inc.* (a)		17,952		57,446
NIC, Inc.(a)		1,936		34,287
Pandora Media, Inc.* (a)		4,928		48,935
RetailMeNot, Inc.*		7,744		65,282
SPS Commerce, Inc.* (a)		704		35,855
Stamps.com, Inc.* (a)		1,056		86,972
TrueCar, Inc.* (a)		15,488		105,938
Twitter, Inc.* (a)		8,096		118,364
VeriSign, Inc.*		2,464		212,890
Web.com Group, Inc.*		8,976		179,430
WebMD Health Corp.* (a)		3,344		209,803
XO Group, Inc.*		1,936		34,190
Yahoo!, Inc.*		16,368		599,069

See Accompanying Notes to the Financial Statements.


50		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Internet Software & Services – (continued)
Yelp, Inc.* (a)		1,232	$	25,872
Zillow Group, Inc., Class A* (a)		5,456		136,509
Zillow Group, Inc., Class C* (a)		2,464		59,235
				20,767,544
IT Services – 3.1%
Accenture PLC, Class A		12,848		1,450,796
Acxiom Corp.* (a)		2,112		46,401
Alliance Data Systems Corp.*		1,056		214,695
Automatic Data Processing, Inc.		11,264		996,188
Blackhawk Network Holdings, Inc.*		2,992		96,133
Booz Allen Hamilton Holding Corp.		7,568		208,650
Broadridge Financial Solutions, Inc.		2,464		147,446
CACI International, Inc., Class A* (a)		4,928		473,827
Cardtronics, Inc.* (a)		7,392		291,393
Cass Information Systems, Inc.(a)		352		17,413
Cognizant Technology Solutions Corp., Class A*		12,848		749,938
Computer Sciences Corp.		2,112		69,971
Convergys Corp.(a)		26,400		699,600
CoreLogic, Inc.*		6,336		224,801
CSG Systems International, Inc.(a)		6,336		281,192
CSRA, Inc.		880		22,845
DST Systems, Inc.(a)		1,936		233,637
EPAM Systems, Inc.* (a)		1,760		128,357
Euronet Worldwide, Inc.* (a)		3,168		244,253
EVERTEC, Inc.		6,688		90,087
ExlService Holdings, Inc.*		1,056		51,100
Fidelity National Information Services, Inc.		5,984		393,747
Fiserv, Inc.* (a)		5,984		584,756
FleetCor Technologies, Inc.*		1,584		245,013
Forrester Research, Inc.(a)		352		11,834
Gartner, Inc.* (a)		1,760		153,419
Genpact Ltd.*		5,808		161,985
Global Payments, Inc.(a)		3,994		288,286


	Shares		Value
IT Services – (continued)
International Business Machines Corp.		30,272	$	4,417,896
Jack Henry & Associates, Inc.		1,584		128,352
Leidos Holdings, Inc.		4,400		218,284
Lionbridge Technologies, Inc.* (a)		9,680		48,303
ManTech International Corp., Class A		3,872		130,874
MasterCard, Inc., Class A		21,120		2,048,429
MAXIMUS, Inc.(a)		4,048		214,139
Net 1 UEPS Technologies, Inc.*		11,616		138,463
NeuStar, Inc., Class A*		8,096		190,175
Paychex, Inc.(a)		7,920		412,790
PayPal Holdings, Inc.*		23,408		917,125
Perficient, Inc.*		6,336		132,296
Science Applications International Corp.		3,872		205,564
ServiceSource International, Inc.* (a)		11,088		44,685
Sykes Enterprises, Inc.*		8,976		261,650
Syntel, Inc.*		2,112		89,823
TeleTech Holdings, Inc.		3,872		107,603
Total System Services, Inc.		4,400		225,016
Travelport Worldwide Ltd.		25,344		353,549
Vantiv, Inc., Class A*		2,640		143,986
Virtusa Corp.*		1,584		56,295
Visa, Inc., Class A		43,472		3,357,777
The Western Union Co.(a)		15,488		309,760
WEX, Inc.* (a)		1,408		133,042
Xerox Corp.(a)		18,304		175,718
				23,039,357
Leisure Products – 0.2%
Brunswick Corp.		4,752		228,239
Callaway Golf Co.		4,928		46,027
Hasbro, Inc.		2,640		223,450
Mattel, Inc.(a)		7,920		246,233
Nautilus, Inc.* (a)		352		6,209
Polaris Industries, Inc.(a)		1,056		103,361
Smith & Wesson Holding Corp.* (a)		7,568		165,209
Sturm Ruger & Co., Inc.		2,992		191,578
				1,210,306

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			51

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Life Sciences Tools & Services – 0.5%
Accelerate Diagnostics, Inc.* (a)		1,584	$	19,879
Agilent Technologies, Inc.		5,104		208,856
Bio-Rad Laboratories, Inc., Class A* (a)		176		24,966
Bio-Techne Corp.(a)		2,464		229,596
Bruker Corp.		4,400		124,520
Cambrex Corp.* (a)		3,520		169,805
Charles River Laboratories International, Inc.*		3,344		265,079
Illumina, Inc.* (a)		2,816		380,132
Mettler-Toledo International, Inc.*		704		251,997
NeoGenomics, Inc.* (a)		3,696		30,085
Pacific Biosciences of California, Inc.*		176		1,698
PAREXEL International Corp.* (a)		3,520		215,072
PerkinElmer, Inc.		1,760		88,739
Quintiles Transnational Holdings, Inc.*		1,056		72,938
Thermo Fisher Scientific, Inc.		8,096		1,167,848
VWR Corp.*		3,872		103,150
Waters Corp.* (a)		1,408		183,265
				3,537,625
Machinery – 2.6%
Actuant Corp., Class A(a)		880		23,505
AGCO Corp.(a)		2,640		141,161
Alamo Group, Inc.		704		39,734
Albany International Corp., Class A		3,168		127,639
Altra Industrial Motion Corp.(a)		1,232		35,358
American Railcar Industries, Inc.(a)		2,464		101,049
Astec Industries, Inc.(a)		1,408		68,147
Barnes Group, Inc.		8,448		274,475
Briggs & Stratton Corp.(a)		2,640		55,889
Caterpillar, Inc.		17,952		1,395,229
Chart Industries, Inc.* (a)		9,152		235,572
CIRCOR International, Inc.(a)		1,936		109,287
CLARCOR, Inc.(a)		704		41,374
Colfax Corp.* (a)		30,272		981,721


	Shares		Value
Machinery – (continued)
Columbus McKinnon Corp.		1,936	$	31,963
Crane Co.(a)		8,800		489,016
Cummins, Inc.(a)		7,392		865,086
Deere & Co.		12,496		1,051,039
Douglas Dynamics, Inc.		1,760		40,322
Dover Corp.		4,576		300,643
Energy Recovery, Inc.*		4,048		49,224
EnPro Industries, Inc.(a)		1,232		72,171
ESCO Technologies, Inc.		528		20,317
Federal Signal Corp.		4,928		67,464
Flowserve Corp.(a)		528		25,772
FreightCar America, Inc.		176		3,018
Global Brass & Copper Holdings, Inc.		4,928		133,549
The Gorman-Rupp Co.		1,232		34,853
Graco, Inc.(a)		704		55,187
The Greenbrier Cos., Inc.(a)		2,464		73,895
Harsco Corp.(a)		14,784		104,819
Hillenbrand, Inc.(a)		14,080		426,765
IDEX Corp.		1,232		100,901
Illinois Tool Works, Inc.		8,976		938,171
Ingersoll-Rand PLC		4,928		322,981
ITT Corp.		5,632		216,100
John Bean Technologies Corp.		3,872		201,886
Joy Global, Inc.		31,504		671,035
Kadant, Inc.		2,640		125,004
Kennametal, Inc.(a)		13,552		316,846
Lincoln Electric Holdings, Inc.		1,584		99,269
Lindsay Corp.(a)		352		26,914
Lydall, Inc.*		3,344		123,026
The Manitowoc Co., Inc.		6,336		36,115
Meritor, Inc.* (a)		11,440		97,240
The Middleby Corp.* (a)		2,640		289,450
Mueller Industries, Inc.(a)		4,928		155,528
Mueller Water Products, Inc., Class A		10,736		115,412
Navistar International Corp.* (a)		22,528		339,947
NN, Inc.(a)		3,168		47,647
Nordson Corp.(a)		704		54,018
Oshkosh Corp.(a)		19,184		937,138
PACCAR, Inc.(a)		15,136		891,662
Parker-Hannifin Corp.		6,160		714,683

See Accompanying Notes to the Financial Statements.


52		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Machinery – (continued)
Pentair PLC(a)		3,520	$	204,442
Proto Labs, Inc.* (a)		528		31,590
RBC Bearings, Inc.* (a)		1,408		103,206
Rexnord Corp.* (a)		32,208		702,134
Snap-on, Inc.		1,232		196,233
SPX Corp.		25,696		413,706
SPX FLOW, Inc.*		12,320		369,107
Standex International Corp.		1,584		121,477
Stanley Black & Decker, Inc.		4,048		453,052
Sun Hydraulics Corp.		1,408		49,815
Tennant Co.		1,232		65,801
Terex Corp.		30,800		735,812
The Timken Co.		12,320		438,962
Titan International, Inc.		1,584		10,502
The Toro Co.(a)		3,168		273,874
TriMas Corp.*		4,928		89,197
Trinity Industries, Inc.(a)		7,392		144,218
Wabash National Corp.* (a)		14,256		203,148
WABCO Holdings, Inc.* (a)		1,232		138,181
Wabtec Corp.(a)		2,112		175,148
Watts Water Technologies, Inc., Class A(a)		1,760		98,331
Woodward, Inc.(a)		4,576		248,065
Xylem, Inc.(a)		2,640		110,299
				19,672,516
Marine – 0.0%^†
Kirby Corp.*		352		22,464
Matson, Inc.		3,344		130,015
				152,479
Media – 2.4%
AMC Entertainment Holdings, Inc., Class A(a)		3,168		89,274
AMC Networks, Inc., Class A* (a)		1,408		91,844
Cablevision Systems Corp., Class A		4,576		152,793
Carmike Cinemas, Inc.* (a)		2,992		89,730
CBS Corp. (Non-Voting), Class B		10,560		590,410
Charter Communications, Inc., Class A* (a)		1,584		336,188


	Shares		Value
Media – (continued)
Cinemark Holdings, Inc.		4,224	$	146,362
Comcast Corp., Class A		55,088		3,347,147
Discovery Communications, Inc., Class A* (a)		352		9,613
Discovery Communications, Inc., Class C*		14,784		395,915
DISH Network Corp., Class A*		2,992		147,476
DreamWorks Animation SKG, Inc., Class A*		4,048		161,596
The E.W. Scripps Co., Class A* (a)		6,160		93,509
Entravision Communications Corp., Class A(a)		12,144		96,545
Gannett Co., Inc.		21,472		361,803
Global Eagle Entertainment, Inc.*		4,224		33,834
Gray Television, Inc.*		6,512		83,679
Harte-Hanks, Inc.		880		1,602
The Interpublic Group of Cos., Inc.		7,744		177,647
John Wiley & Sons, Inc., Class A		4,752		235,652
Liberty Braves Group, Class A* (a)		193		3,018
Liberty Braves Group, Class C*		440		6,565
Liberty Media Group, Class A*		484		8,857
Liberty Media Group, Class C*		1,100		19,800
Liberty SiriusXM Group, Class A*		1,936		63,443
Liberty SiriusXM Group, Class C*		4,400		140,888
Lions Gate Entertainment Corp.		3,872		85,958
Live Nation Entertainment, Inc.*		8,624		185,243
Media General, Inc.*		1,408		24,401
Meredith Corp.		5,632		288,978
MSG Networks, Inc., Class A*		7,568		129,337
National CineMedia, Inc.(a)		704		9,997
New Media Investment Group, Inc.(a)		8,272		132,766
The New York Times Co., Class A(a)		11,088		142,148
News Corp., Class B(a)		15,488		200,724

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			53

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Media – (continued)
Nexstar Broadcasting Group, Inc., Class A(a)		1,936	$	99,375
Omnicom Group, Inc.(a)		3,696		306,657
Regal Entertainment Group, Class A(a)		8,448		176,141
Scholastic Corp.(a)		3,344		121,655
Scripps Networks Interactive, Inc., Class A(a)		4,928		307,261
Sinclair Broadcast Group, Inc., Class A(a)		5,984		191,907
Sirius XM Holdings, Inc.*		47,168		186,314
Starz, Class A* (a)		6,688		181,980
TEGNA, Inc.(a)		3,168		74,004
Time Warner Cable, Inc.		6,160		1,306,598
Time Warner, Inc.(a)		16,720		1,256,341
Time, Inc.		16,896		248,371
Twenty-First Century Fox, Inc., Class A		39,248		1,187,644
Viacom, Inc., Class A(a)		14,784		649,461
The Walt Disney Co.		33,616		3,471,188
World Wrestling Entertainment, Inc., Class A(a)		2,992		49,787
				17,899,426
Metals & Mining – 1.0%
AK Steel Holding Corp.* (a)		74,096		346,769
Alcoa, Inc.(a)		29,216		326,343
Allegheny Technologies, Inc.(a)		37,840		618,306
Carpenter Technology Corp.(a)		6,160		218,126
Cliffs Natural Resources, Inc.* (a)		13,200		69,564
Coeur Mining, Inc.* (a)		72,864		590,198
Commercial Metals Co.(a)		17,776		318,546
Compass Minerals International, Inc.(a)		2,640		197,894
Freeport-McMoRan, Inc.		34,320		480,480
Haynes International, Inc.(a)		5,104		191,553
Hecla Mining Co.(a)		63,360		273,082
Kaiser Aluminum Corp.		2,288		216,971
Materion Corp.(a)		2,640		76,534
McEwen Mining, Inc.(a)		14,080		36,608
Newmont Mining Corp.		24,816		867,815


	Shares		Value
Metals & Mining – (continued)
Nucor Corp.		3,696	$	183,987
Reliance Steel & Aluminum Co.		352		26,037
Schnitzer Steel Industries, Inc., Class A(a)		8,624		177,827
Steel Dynamics, Inc.		2,464		62,117
Stillwater Mining Co.* (a)		20,944		255,517
SunCoke Energy, Inc.		52,272		388,381
TimkenSteel Corp.(a)		24,112		307,187
United States Steel Corp.(a)		46,816		894,654
Worthington Industries, Inc.(a)		12,848		485,012
				7,609,508
Multiline Retail – 0.7%
Big Lots, Inc.(a)		8,096		371,283
Dillard’s, Inc., Class A(a)		7,744		545,565
Dollar General Corp.		6,864		562,230
Dollar Tree, Inc.* (a)		4,928		392,811
Fred’s, Inc., Class A(a)		3,520		51,639
J.C. Penney Co., Inc.* (a)		68,112		632,079
Kohl’s Corp.(a)		4,224		187,123
Macy’s, Inc.		6,864		271,746
Nordstrom, Inc.		880		44,994
Sears Holdings Corp.* (a)		13,200		216,150
Target Corp.		23,232		1,846,944
Tuesday Morning Corp.* (a)		4,928		42,775
				5,165,339
Multi-Utilities – 1.1%
Alliant Energy Corp.(a)		1,936		136,527
Ameren Corp.		7,920		380,160
Avista Corp.(a)		13,200		528,924
Black Hills Corp.(a)		15,840		959,746
CenterPoint Energy, Inc.		6,160		132,132
CMS Energy Corp.(a)		5,456		221,950
Consolidated Edison, Inc.		10,912		814,035
Dominion Resources, Inc.(a)		14,608		1,044,034
DTE Energy Co.		6,160		549,226
NiSource, Inc.		5,456		123,906
NorthWestern Corp.(a)		8,800		500,192
Public Service Enterprise Group, Inc.		21,296		982,384
SCANA Corp.(a)		3,520		241,789
Sempra Energy		5,104		527,498

See Accompanying Notes to the Financial Statements.


54		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Multi-Utilities – (continued)
TECO Energy, Inc.		7,392	$	205,276
Unitil Corp.(a)		2,112		83,466
Vectren Corp.(a)		5,984		292,318
WEC Energy Group, Inc.(a)		10,033		584,021
				8,307,584
Oil, Gas & Consumable Fuels – 5.5%
Alon USA Energy, Inc.(a)		5,808		60,984
Anadarko Petroleum Corp.		9,152		482,859
Apache Corp.(a)		16,368		890,419
Bill Barrett Corp.* (a)		8,096		64,444
Bonanza Creek Energy, Inc.* (a)		12,496		48,484
Cabot Oil & Gas Corp.(a)		5,632		131,789
California Resources Corp.		99,509		218,919
Callon Petroleum Co.* (a)		18,656		196,075
Carrizo Oil & Gas, Inc.*		3,872		136,953
Cheniere Energy, Inc.* (a)		4,928		191,601
Chesapeake Energy Corp.* (a)		53,680		368,782
Chevron Corp.		42,064		4,298,099
Cimarex Energy Co.		1,056		114,977
Clayton Williams Energy, Inc.* (a)		880		15,954
Clean Energy Fuels Corp.* (a)		20,768		59,396
Cobalt International Energy, Inc.* (a)		85,536		276,281
Columbia Pipeline Group, Inc.		2,112		54,109
Concho Resources, Inc.* (a)		1,584		184,013
ConocoPhillips Co.		45,408		2,170,048
CONSOL Energy, Inc.(a)		73,392		1,104,550
Continental Resources, Inc.* (a)		4,048		150,828
CVR Energy, Inc.		1,936		47,006
Delek U.S. Holdings, Inc.(a)		7,920		125,849
Denbury Resources, Inc.		137,984		532,618
Devon Energy Corp.		13,376		463,880
Diamondback Energy, Inc.* (a)		2,640		228,571
Eclipse Resources Corp.* (a)		15,136		36,780
Energen Corp.		352		14,956
EOG Resources, Inc.		14,432		1,192,372
EP Energy Corp., Class A* (a)		33,440		164,190
EQT Corp.		1,584		111,038
EXCO Resources, Inc.* (a)		17,952		27,287


	Shares		Value
Oil, Gas & Consumable Fuels – (continued)
Exxon Mobil Corp.		144,320	$	12,757,888
Gener8 Maritime, Inc.*		15,840		114,523
Green Plains, Inc.(a)		3,696		66,898
Gulfport Energy Corp.* (a)		33,088		1,035,654
Halcon Resources Corp.* (a)		23,408		28,558
Hess Corp.(a)		2,640		157,397
HollyFrontier Corp.		5,632		200,499
Kinder Morgan, Inc.		44,528		790,817
Kosmos Energy Ltd.* (a)		3,520		22,810
Marathon Oil Corp.		20,064		282,702
Marathon Petroleum Corp.		16,544		646,540
Matador Resources Co.* (a)		4,400		94,820
Murphy Oil Corp.(a)		880		31,451
Newfield Exploration Co.*		4,752		172,260
Noble Energy, Inc.		5,280		190,661
Oasis Petroleum, Inc.*		44,000		426,360
Occidental Petroleum Corp.		19,536		1,497,434
ONEOK, Inc.(a)		1,584		57,262
Pacific Ethanol, Inc.* (a)		27,104		128,202
Par Pacific Holdings, Inc.* (a)		5,632		107,628
Parsley Energy, Inc., Class A*		1,056		24,732
PBF Energy, Inc., Class A(a)		21,120		679,642
PDC Energy, Inc.*		1,584		99,459
Phillips 66		17,952		1,474,039
Pioneer Natural Resources Co.(a)		4,400		730,840
QEP Resources, Inc.(a)		50,160		899,369
Range Resources Corp.		1,936		85,397
Renewable Energy Group, Inc.* (a)		1,056		10,264
REX American Resources Corp.* (a)		1,056		57,415
Rice Energy, Inc.*		16,016		277,237
RSP Permian, Inc.* (a)		1,584		48,486
Sanchez Energy Corp.*		3,872		34,809
Southwestern Energy Co.* (a)		24,464		328,552
Spectra Energy Corp.(a)		9,328		291,687
Synergy Resources Corp.*		1,232		8,895
Targa Resources Corp.		5,984		242,113
Tesoro Corp.		2,816		224,407
Ultra Petroleum Corp.* (a)		70,576		22,034
Valero Energy Corp.		15,840		932,501
Western Refining, Inc.(a)		4,576		122,454

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			55

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Oil, Gas & Consumable Fuels – (continued)
Whiting Petroleum Corp.* (a)		20,064	$	240,768
The Williams Cos., Inc.		14,080		273,011
World Fuel Services Corp.(a)		15,664		731,979
WPX Energy, Inc.*		73,744		712,367
				41,526,932
Paper & Forest Products – 0.2%
Boise Cascade Co.*		3,696		77,135
Clearwater Paper Corp.*		2,112		126,171
Domtar Corp.(a)		14,256		550,852
KapStone Paper and Packaging Corp.(a)		6,512		103,476
Louisiana-Pacific Corp.*		12,848		218,416
Neenah Paper, Inc.(a)		2,816		183,293
PH Glatfelter Co.		4,048		92,820
Resolute Forest Products, Inc.*		13,728		79,760
Schweitzer-Mauduit International, Inc.		8,448		290,527
				1,722,450
Personal Products – 0.3%
Avon Products, Inc.		98,560		464,218
Coty, Inc., Class A(a)		2,816		85,606
Edgewell Personal Care Co.		3,344		274,442
The Estee Lauder Cos., Inc., Class A		4,576		438,701
Herbalife Ltd.* (a)		1,936		112,191
Inter Parfums, Inc.(a)		1,936		59,280
Medifast, Inc.(a)		1,056		33,296
Natural Health Trends Corp.(a)		704		25,478
Nu Skin Enterprises, Inc., Class A(a)		11,264		459,233
Revlon, Inc., Class A* (a)		2,112		76,940
USANA Health Sciences, Inc.* (a)		704		83,382
				2,112,767
Pharmaceuticals – 3.6%
AbbVie, Inc.		36,784		2,243,824
Akorn, Inc.* (a)		2,288		58,230
Allergan PLC*		8,976		1,943,843
BioDelivery Sciences International, Inc.* (a)		5,632		19,036


	Shares		Value
Pharmaceuticals – (continued)
Bristol-Myers Squibb Co.		37,312	$	2,693,180
Depomed, Inc.* (a)		4,752		82,590
Eli Lilly & Co.		22,176		1,674,953
Endo International PLC*		3,872		104,544
Horizon Pharma PLC*		33,792		519,383
Impax Laboratories, Inc.* (a)		4,400		146,740
Jazz Pharmaceuticals PLC*		1,232		185,662
Johnson & Johnson		63,712		7,140,841
Lannett Co., Inc.* (a)		5,456		104,646
Mallinckrodt PLC*		3,344		209,067
The Medicines Co.* (a)		2,816		100,221
Merck & Co., Inc.		62,656		3,436,055
Mylan N.V.*		8,800		367,048
Nektar Therapeutics* (a)		5,280		82,790
Omeros Corp.* (a)		3,344		44,308
Pacira Pharmaceuticals, Inc.* (a)		2,288		123,804
Perrigo Co. PLC		2,640		255,209
Pfizer, Inc.		137,632		4,501,943
Prestige Brands Holdings, Inc.* (a)		3,520		199,866
Relypsa, Inc.* (a)		352		6,371
SciClone Pharmaceuticals, Inc.* (a)		4,048		53,434
Supernus Pharmaceuticals, Inc.* (a)		352		6,040
TherapeuticsMD, Inc.*		2,112		17,424
XenoPort, Inc.* (a)		1,056		4,646
Zoetis, Inc.		10,032		471,805
				26,797,503
Professional Services – 0.5%
Acacia Research Corp.		13,200		63,624
The Advisory Board Co.* (a)		880		27,843
CBIZ, Inc.*		8,272		84,209
CEB, Inc.(a)		2,288		141,147
The Dun & Bradstreet Corp.(a)		704		77,729
Equifax, Inc.		2,464		296,296
Exponent, Inc.		2,112		105,262
FTI Consulting, Inc.* (a)		10,912		439,754
GP Strategies Corp.*		1,408		32,863
Heidrick & Struggles International, Inc.(a)		1,408		27,780

See Accompanying Notes to the Financial Statements.


56		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Professional Services – (continued)
Huron Consulting Group, Inc.* (a)		2,816	$	156,598
ICF International, Inc.*		3,520		138,582
IHS, Inc., Class A*		1,936		238,476
Insperity, Inc.(a)		1,760		92,875
Kelly Services, Inc., Class A(a)		2,288		42,946
Kforce, Inc.		2,992		56,878
Korn/Ferry International(a)		5,632		152,852
ManpowerGroup, Inc.		2,112		162,687
Mistras Group, Inc.*		176		4,289
Navigant Consulting, Inc.*		15,312		244,379
Nielsen Holdings PLC(a)		5,104		266,123
On Assignment, Inc.*		4,576		165,011
Resources Connection, Inc.		2,464		36,393
Robert Half International, Inc.		2,992		114,624
RPX Corp.*		2,288		25,351
TriNet Group, Inc.*		2,112		35,101
TrueBlue, Inc.* (a)		6,160		115,130
Verisk Analytics, Inc.*		3,520		273,082
WageWorks, Inc.* (a)		1,408		75,835
				3,693,719
Real Estate Investment Trusts (REITs) – 4.7%
Acadia Realty Trust(a)		5,632		189,798
AG Mortgage Investment Trust, Inc.(a)		18,304		245,091
Agree Realty Corp.		880		34,126
Alexander’s, Inc.		352		134,700
Alexandria Real Estate Equities, Inc.		2,464		229,029
Altisource Residential Corp.(a)		6,336		73,624
American Assets Trust, Inc.		2,464		97,747
American Campus Communities, Inc.		2,816		126,016
American Capital Agency Corp.		5,632		103,460
American Capital Mortgage Investment Corp.		1,584		23,491
American Homes 4 Rent, Class A		176		2,784
American Tower Corp.		10,208		1,070,615
Annaly Capital Management, Inc.(a)		27,456		286,091


	Shares		Value
Real Estate Investment Trusts (REITs) – (continued)
Anworth Mortgage Asset Corp.(a)		6,864	$	32,398
Apartment Investment & Management Co., Class A(a)		3,872		155,112
Apollo Commercial Real Estate Finance, Inc.(a)		5,456		86,914
Apollo Residential Mortgage, Inc.(a)		1,584		21,479
Apple Hospitality REIT, Inc.		30,448		576,381
ARMOUR Residential REIT, Inc.(a)		2,288		48,689
Ashford Hospitality Trust, Inc.(a)		2,816		15,741
AvalonBay Communities, Inc.		3,344		591,186
Blackstone Mortgage Trust, Inc., Class A(a)		17,072		469,139
Boston Properties, Inc.		4,224		544,305
Brandywine Realty Trust		11,440		171,028
Brixmor Property Group, Inc.		880		22,220
Camden Property Trust(a)		2,112		170,502
Capstead Mortgage Corp.(a)		6,512		63,297
Care Capital Properties, Inc.		15,488		413,065
CBL & Associates Properties, Inc.		16,192		189,123
Cedar Realty Trust, Inc.		5,280		36,538
Chatham Lodging Trust		2,288		48,757
Chesapeake Lodging Trust(a)		5,104		125,711
Chimera Investment Corp.		34,320		487,344
Colony Capital, Inc., Class A(a)		19,360		342,285
Colony Starwood Homes(a)		13,376		325,973
Communications Sales & Leasing, Inc.		2,464		57,239
CorEnergy Infrastructure Trust, Inc.(a)		704		14,988
CoreSite Realty Corp.(a)		2,288		171,440
Corporate Office Properties Trust		9,328		239,543
Corrections Corp. of America		29,920		910,166
Cousins Properties, Inc.(a)		33,264		344,282
Crown Castle International Corp.		7,216		626,926
CubeSmart(a)		8,800		260,568
CyrusOne, Inc.		2,464		108,736

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			57

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Real Estate Investment Trusts (REITs) – (continued)
CYS Investments, Inc.(a)		17,248	$	139,881
DCT Industrial Trust, Inc.(a)		5,632		227,364
DDR Corp.(a)		8,624		150,920
DiamondRock Hospitality Co.(a)		17,072		152,112
Digital Realty Trust, Inc.(a)		2,640		232,267
Douglas Emmett, Inc.		1,936		62,823
Duke Realty Corp.		9,504		207,852
DuPont Fabros Technology, Inc.(a)		5,280		210,250
EastGroup Properties, Inc.(a)		880		52,580
Education Realty Trust, Inc.(a)		3,696		146,990
Empire State Realty Trust, Inc., Class A		5,984		110,764
EPR Properties		4,400		289,872
Equinix, Inc.		1,408		465,133
Equity Commonwealth* (a)		9,152		255,432
Equity LifeStyle Properties, Inc.		1,408		96,434
Equity One, Inc.(a)		5,104		144,443
Equity Residential(a)		9,328		634,957
Essex Property Trust, Inc.(a)		1,056		232,795
Extra Space Storage, Inc.		3,344		284,073
Federal Realty Investment Trust(a)		1,936		294,427
FelCor Lodging Trust, Inc.(a)		11,264		80,650
First Industrial Realty Trust, Inc.		8,096		185,722
Forest City Realty Trust, Inc., Class A(a)		6,336		131,662
Gaming and Leisure Properties, Inc.		3,590		117,729
General Growth Properties, Inc.		13,376		374,929
The GEO Group, Inc.(a)		5,456		174,756
Getty Realty Corp.		704		13,855
Global Net Lease, Inc.		24,112		204,229
Government Properties Income Trust(a)		26,048		492,828
Gramercy Property Trust(a)		6,688		56,647
Hannon Armstrong Sustainable Infrastructure Capital, Inc.(a)		1,408		27,315
Hatteras Financial Corp.(a)		34,144		542,548
HCP, Inc.		14,608		494,189


	Shares		Value
Real Estate Investment Trusts (REITs) – (continued)
Healthcare Realty Trust, Inc.(a)		4,928	$	149,220
Healthcare Trust of America, Inc., Class A(a)		4,400		127,116
Hersha Hospitality Trust		2,992		57,716
Highwoods Properties, Inc.		4,752		222,061
Hospitality Properties Trust(a)		880		22,519
Host Hotels & Resorts, Inc.		9,328		147,569
Hudson Pacific Properties, Inc.(a)		4,576		133,848
Independence Realty Trust, Inc.		1,056		7,572
InfraREIT, Inc.		2,816		46,689
Invesco Mortgage Capital, Inc.		17,072		219,375
iStar, Inc.*		5,280		51,744
Kilroy Realty Corp.		1,408		91,252
Kimco Realty Corp.		10,384		291,998
Kite Realty Group Trust		14,432		392,983
Ladder Capital Corp.(a)		23,232		276,693
Lamar Advertising Co., Class A		1,408		87,352
LaSalle Hotel Properties(a)		5,808		138,811
Lexington Realty Trust(a)		2,640		23,179
Liberty Property Trust		352		12,285
LTC Properties, Inc.		2,640		122,470
The Macerich Co.		3,168		241,021
Medical Properties Trust, Inc.(a)		68,112		906,571
MFA Financial, Inc.		66,880		462,141
Mid-America Apartment Communities, Inc.(a)		1,760		168,450
National Health Investors, Inc.		2,288		155,790
National Retail Properties, Inc.		2,992		130,930
New Residential Investment Corp.		63,888		773,045
New Senior Investment Group, Inc.(a)		37,312		402,970
New York Mortgage Trust, Inc.(a)		55,088		286,458
NorthStar Realty Finance Corp.		15,664		200,343
Omega Healthcare Investors, Inc.(a)		5,280		178,306
Orchid Island Capital, Inc.(a)		3,872		37,481
Outfront Media, Inc.		1,232		26,722
Parkway Properties, Inc.(a)		1,936		31,847
Pebblebrook Hotel Trust(a)		5,984		165,398
Pennsylvania Real Estate Investment Trust(a)		8,976		205,909

See Accompanying Notes to the Financial Statements.


58		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Real Estate Investment Trusts (REITs) – (continued)
PennyMac Mortgage Investment Trust		12,496	$	169,821
Piedmont Office Realty Trust, Inc., Class A		5,104		101,621
Post Properties, Inc.		4,048		232,193
Potlatch Corp.		880		30,994
Prologis, Inc.		12,496		567,443
PS Business Parks, Inc.		704		67,415
Public Storage		3,696		904,818
QTS Realty Trust, Inc., Class A		880		42,610
Ramco-Gershenson Properties Trust(a)		2,288		40,520
Realty Income Corp.(a)		4,752		281,327
Redwood Trust, Inc.		11,088		143,700
Regency Centers Corp.(a)		2,816		207,539
Retail Opportunity Investments Corp.(a)		4,576		90,010
Retail Properties of America, Inc., Class A		1,760		28,142
RLJ Lodging Trust(a)		7,040		148,333
Rouse Properties, Inc.		528		9,752
Ryman Hospitality Properties, Inc.		4,400		226,732
Sabra Health Care REIT, Inc.		18,832		397,167
Saul Centers, Inc.		528		28,079
Select Income REIT(a)		9,152		211,869
Senior Housing Properties Trust		15,840		278,467
Simon Property Group, Inc.		7,216		1,451,643
SL Green Realty Corp.(a)		1,584		166,447
Sovran Self Storage, Inc.		2,464		261,726
Spirit Realty Capital, Inc.		20,240		231,343
STAG Industrial, Inc.		3,168		63,233
Starwood Property Trust, Inc.		1,760		34,074
Summit Hotel Properties, Inc.		10,736		122,390
Sun Communities, Inc.		3,344		226,957
Sunstone Hotel Investors, Inc.(a)		17,072		218,692
Tanger Factory Outlet Centers, Inc.(a)		1,760		61,741
Taubman Centers, Inc.(a)		1,056		73,339
Terreno Realty Corp.(a)		176		4,008
Two Harbors Investment Corp.		69,520		544,342


	Shares		Value
Real Estate Investment Trusts (REITs) – (continued)
UDR, Inc.(a)		6,688	$	233,545
Universal Health Realty Income Trust		2,112		115,315
Urstadt Biddle Properties, Inc., Class A		176		3,619
Ventas, Inc.(a)		10,208		634,121
VEREIT, Inc.		13,200		117,216
Vornado Realty Trust(a)		3,520		336,970
Washington Real Estate Investment Trust		3,168		90,827
Weingarten Realty Investors		1,232		45,485
Welltower, Inc.(a)		8,272		574,242
Western Asset Mortgage Capital Corp.(a)		18,832		187,755
Weyerhaeuser Co.(a)		15,312		491,821
WP GLIMCHER, Inc.		19,888		208,625
				35,279,937
Real Estate Management & Development – 0.1%
Alexander & Baldwin, Inc.(a)		704		26,921
Altisource Portfolio Solutions S.A.* (a)		1,408		44,056
CBRE Group, Inc., Class A* (a)		5,104		151,231
Forestar Group, Inc.*		176		2,376
The Howard Hughes Corp.* (a)		880		92,550
Jones Lang LaSalle, Inc.		880		101,350
Kennedy-Wilson Holdings, Inc.(a)		4,400		95,084
Realogy Holdings Corp.*		2,112		75,483
The St. Joe Co.* (a)		8,096		136,418
				725,469
Road & Rail – 0.8%
AMERCO(a)		528		185,856
ArcBest Corp.(a)		3,872		73,917
Avis Budget Group, Inc.* (a)		4,752		119,275
Celadon Group, Inc.(a)		19,712		198,500
CSX Corp.		39,248		1,070,293
Heartland Express, Inc.(a)		2,640		47,811
Hertz Global Holdings, Inc.*		528		4,889
J.B. Hunt Transport Services, Inc.(a)		1,232		102,108
Kansas City Southern		528		50,028
Knight Transportation, Inc.(a)		4,928		130,937

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			59

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Road & Rail – (continued)
Landstar System, Inc.(a)		2,288	$	149,978
Marten Transport Ltd.(a)		3,696		68,967
Norfolk Southern Corp.		11,440		1,030,858
Old Dominion Freight Line, Inc.*		2,816		185,997
Roadrunner Transportation Systems, Inc.*		1,584		18,723
Ryder System, Inc.		3,168		218,339
Saia, Inc.* (a)		7,392		213,777
Swift Transportation Co.* (a)		32,736		544,072
Union Pacific Corp.		17,600		1,535,248
Werner Enterprises, Inc.(a)		3,344		84,737
YRC Worldwide, Inc.*		10,736		98,771
				6,133,081
Semiconductors & Semiconductor Equipment – 2.5%
Advanced Energy Industries, Inc.* (a)		5,280		170,808
Advanced Micro Devices, Inc.* (a)		1,232		4,374
Amkor Technology, Inc.* (a)		30,624		174,863
Analog Devices, Inc.		5,632		317,194
Applied Materials, Inc.		28,512		583,641
Applied Micro Circuits Corp.* (a)		5,104		31,849
Broadcom Ltd.		7,744		1,128,688
Brooks Automation, Inc.(a)		3,696		34,964
Cabot Microelectronics Corp.(a)		1,584		66,354
Cavium, Inc.* (a)		3,696		182,472
CEVA, Inc.* (a)		176		4,059
Cirrus Logic, Inc.* (a)		13,376		482,874
Cree, Inc.* (a)		3,344		81,961
Cypress Semiconductor Corp.(a)		19,536		176,410
Diodes, Inc.* (a)		5,808		108,145
Entegris, Inc.* (a)		12,672		168,411
Exar Corp.* (a)		1,232		7,515
Fairchild Semiconductor International, Inc.* (a)		9,328		186,560
First Solar, Inc.* (a)		1,584		88,451
FormFactor, Inc.* (a)		6,512		50,142
Inphi Corp.* (a)		1,760		52,219


	Shares		Value
Semiconductors & Semiconductor Equipment – (continued)
Integrated Device Technology, Inc.*		9,504	$	183,237
Intel Corp.		162,448		4,918,925
Intersil Corp., Class A(a)		8,800		102,872
IXYS Corp.		880		9,504
KLA-Tencor Corp.		1,584		110,785
Kulicke & Soffa Industries, Inc.*		3,520		37,734
Lam Research Corp.(a)		5,104		389,946
Lattice Semiconductor Corp.* (a)		19,888		110,776
Linear Technology Corp.		2,992		133,084
Marvell Technology Group Ltd.		4,928		49,181
Maxim Integrated Products, Inc.		6,512		232,609
MaxLinear, Inc., Class A* (a)		1,232		20,636
Microchip Technology, Inc.(a)		3,014		146,450
Micron Technology, Inc.*		30,624		329,208
Microsemi Corp.* (a)		25,872		874,215
MKS Instruments, Inc.(a)		3,872		138,850
Monolithic Power Systems, Inc.(a)		3,168		197,747
Nanometrics, Inc.*		176		3,143
NVIDIA Corp.(a)		9,504		337,677
ON Semiconductor Corp.*		9,504		90,003
PDF Solutions, Inc.* (a)		704		9,469
Photronics, Inc.* (a)		7,216		76,345
Power Integrations, Inc.(a)		1,232		59,444
Qorvo, Inc.* (a)		7,568		340,787
QUALCOMM, Inc.		54,912		2,774,154
Rambus, Inc.* (a)		15,488		179,971
Rudolph Technologies, Inc.* (a)		1,232		17,088
Silicon Laboratories, Inc.* (a)		1,936		90,605
Skyworks Solutions, Inc.(a)		3,168		211,686
SolarEdge Technologies, Inc.*		1,936		51,865
SunPower Corp.* (a)		3,344		67,348
Synaptics, Inc.*		8,272		591,862
Teradyne, Inc.		5,456		103,173
Tessera Technologies, Inc.		4,576		131,423
Texas Instruments, Inc.		23,408		1,335,192
Veeco Instruments, Inc.*		4,928		90,724
Xcerra Corp.*		2,816		16,614
Xilinx, Inc.		4,400		189,552
				18,855,838

See Accompanying Notes to the Financial Statements.


60		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Software – 3.0%
ACI Worldwide, Inc.*		8,976	$	179,430
Activision Blizzard, Inc.		9,680		333,670
Adobe Systems, Inc.*		9,856		928,632
ANSYS, Inc.* (a)		2,464		223,657
Aspen Technology, Inc.* (a)		5,456		207,492
Autodesk, Inc.* (a)		4,048		242,151
Blackbaud, Inc.(a)		3,168		195,687
Bottomline Technologies de, Inc.* (a)		1,056		25,935
BroadSoft, Inc.* (a)		880		34,465
CA, Inc.		5,632		167,045
Cadence Design Systems, Inc.*		4,400		102,036
Callidus Software, Inc.* (a)		2,992		54,754
CDK Global, Inc.		1,760		83,723
Citrix Systems, Inc.*		1,936		158,442
Digimarc Corp.* (a)		528		15,761
Ebix, Inc.(a)		3,696		177,852
Electronic Arts, Inc.*		6,160		380,996
Ellie Mae, Inc.*		2,288		191,277
Epiq Systems, Inc.		4,400		64,988
Fair Isaac Corp.(a)		2,464		262,934
FireEye, Inc.* (a)		528		9,161
Fleetmatics Group PLC*		1,936		70,180
Fortinet, Inc.* (a)		7,920		257,479
Glu Mobile, Inc.* (a)		4,048		10,808
Guidewire Software, Inc.* (a)		1,936		110,294
Imperva, Inc.* (a)		1,584		73,624
Interactive Intelligence Group, Inc.* (a)		528		19,626
Intuit, Inc.		6,160		621,482
Manhattan Associates, Inc.* (a)		3,696		223,756
Mentor Graphics Corp.		4,224		84,311
Microsoft Corp.		185,152		9,233,530
MicroStrategy, Inc., Class A* (a)		880		157,802
Model N, Inc.* (a)		176		1,880
Monotype Imaging Holdings, Inc.		1,584		34,896
NetSuite, Inc.* (a)		704		57,052
Nuance Communications, Inc.*		8,272		142,113
Oracle Corp.		76,912		3,065,712


	Shares		Value
Software – (continued)
Pegasystems, Inc.		2,288	$	60,380
Progress Software Corp.*		2,992		76,356
Proofpoint, Inc.* (a)		2,288		133,299
PROS Holdings, Inc.* (a)		704		8,279
PTC, Inc.* (a)		6,336		231,011
Qlik Technologies, Inc.*		4,752		146,314
Qualys, Inc.*		1,056		26,590
RealPage, Inc.*		176		3,870
Red Hat, Inc.*		3,520		258,262
Rovi Corp.* (a)		17,952		316,314
salesforce.com, Inc.*		13,200		1,000,560
ServiceNow, Inc.* (a)		2,288		163,546
Silver Spring Networks, Inc.*		5,104		71,711
Splunk, Inc.* (a)		1,936		100,633
SS&C Technologies Holdings, Inc.(a)		3,344		204,486
Symantec Corp.(a)		23,936		398,415
Synchronoss Technologies, Inc.* (a)		2,816		87,493
Synopsys, Inc.*		3,168		150,543
Tableau Software, Inc., Class A*		880		45,496
Take-Two Interactive Software, Inc.* (a)		6,512		222,580
Telenav, Inc.*		1,760		10,032
TiVo, Inc.* (a)		1,408		14,052
Tyler Technologies, Inc.* (a)		1,584		231,914
The Ultimate Software Group, Inc.* (a)		1,408		276,799
VASCO Data Security International, Inc.* (a)		2,464		42,701
Verint Systems, Inc.* (a)		4,224		142,940
Workday, Inc., Class A* (a)		704		52,786
Zix Corp.*		2,816		10,504
Zynga, Inc., Class A* (a)		23,408		55,711
				22,748,210
Specialty Retail – 2.8%
Aaron’s, Inc.(a)		10,912		286,004
Abercrombie & Fitch Co., Class A(a)		18,304		489,266
Advance Auto Parts, Inc.		1,584		247,262
American Eagle Outfitters, Inc.		34,672		496,156
America’s Car-Mart, Inc.* (a)		2,640		70,145

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			61

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Specialty Retail – (continued)
Asbury Automotive Group, Inc.* (a)		2,816	$	170,706
Ascena Retail Group, Inc.* (a)		32,208		283,753
AutoNation, Inc.* (a)		2,288		115,887
AutoZone, Inc.*		704		538,722
Barnes & Noble, Inc.(a)		5,456		64,108
Bed Bath & Beyond, Inc.*		8,448		398,915
Best Buy Co., Inc.(a)		5,456		175,029
Big 5 Sporting Goods Corp.		1,760		21,278
Boot Barn Holdings, Inc.* (a)		528		4,330
The Buckle, Inc.(a)		2,112		61,121
Burlington Stores, Inc.* (a)		4,752		270,721
Cabela’s, Inc.*		10,384		541,526
Caleres, Inc.(a)		7,392		186,352
CarMax, Inc.* (a)		4,752		251,618
The Cato Corp., Class A(a)		2,640		96,598
Chico’s FAS, Inc.		1,232		15,536
The Children’s Place, Inc.		1,584		123,409
Citi Trends, Inc.		2,288		41,092
Conn’s, Inc.* (a)		7,568		103,984
CST Brands, Inc.(a)		4,576		172,836
DSW, Inc., Class A(a)		23,232		570,810
Express, Inc.* (a)		19,184		348,765
The Finish Line, Inc., Class A(a)		1,936		38,236
Foot Locker, Inc.(a)		3,168		194,642
GameStop Corp., Class A(a)		3,168		103,910
The Gap, Inc.(a)		2,288		53,036
Genesco, Inc.* (a)		2,640		182,635
GNC Holdings, Inc., Class A(a)		20,240		493,046
Group 1 Automotive, Inc.(a)		4,928		324,460
Guess?, Inc.		4,048		74,281
Haverty Furniture Cos., Inc.(a)		880		16,430
Hibbett Sports, Inc.* (a)		7,920		285,912
The Home Depot, Inc.		28,160		3,770,342
Kirkland’s, Inc.		2,464		40,459
L Brands, Inc.		5,808		454,708
Lithia Motors, Inc., Class A(a)		1,936		160,727
Lowe’s Cos., Inc.		22,880		1,739,338
Lumber Liquidators Holdings, Inc.* (a)		2,112		31,490
MarineMax, Inc.* (a)		2,112		40,149


	Shares		Value
Specialty Retail – (continued)
Mattress Firm Holding Corp.* (a)		3,520	$	137,350
The Michaels Cos., Inc.* (a)		1,760		50,037
Monro Muffler Brake, Inc.		2,464		170,558
Murphy USA, Inc.*		3,520		202,118
Office Depot, Inc.*		36,784		216,290
O’Reilly Automotive, Inc.*		2,464		647,244
Outerwall, Inc.(a)		2,288		94,517
Party City Holdco, Inc.*		12,496		179,068
Penske Automotive Group, Inc.(a)		4,224		165,285
Pier 1 Imports, Inc.(a)		32,560		224,338
Rent-A-Center, Inc.		7,920		116,424
Restoration Hardware Holdings, Inc.* (a)		1,936		83,771
Ross Stores, Inc.		10,032		569,617
Sally Beauty Holdings, Inc.* (a)		2,992		93,949
Select Comfort Corp.* (a)		11,440		282,339
Shoe Carnival, Inc.		2,112		54,131
Signet Jewelers Ltd.(a)		1,584		171,959
Sonic Automotive, Inc., Class A(a)		4,048		75,940
Sportsman’s Warehouse Holdings, Inc.*		2,816		32,046
Staples, Inc.		8,096		82,579
Stein Mart, Inc.		704		5,097
Tailored Brands, Inc.(a)		16,720		291,262
Tiffany & Co.(a)		4,400		313,940
The TJX Cos., Inc.		15,312		1,160,956
Tractor Supply Co.		3,696		349,863
Ulta Salon Cosmetics & Fragrance, Inc.* (a)		1,584		329,916
Urban Outfitters, Inc.* (a)		704		21,345
Vitamin Shoppe, Inc.* (a)		11,088		303,479
Williams-Sonoma, Inc.(a)		1,584		93,108
				20,668,256
Technology Hardware, Storage & Peripherals – 3.3%
3D Systems Corp.* (a)		19,008		336,252
Apple, Inc.		193,600		18,148,064
CPI Card Group, Inc.(a)		6,160		48,849
Cray, Inc.*		2,640		99,977
Diebold, Inc.		5,456		143,329
Eastman Kodak Co.*		3,344		39,526

See Accompanying Notes to the Financial Statements.


62		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Technology Hardware, Storage & Peripherals – (continued)
Electronics For Imaging, Inc.* (a)		3,344	$	133,225
EMC Corp.		61,248		1,599,185
Hewlett Packard Enterprise Co.		71,808		1,196,321
HP, Inc.		50,512		619,782
Immersion Corp.* (a)		880		6,433
Lexmark International, Inc., Class A		10,384		400,822
NCR Corp.*		10,912		317,430
NetApp, Inc.(a)		15,136		357,815
Nimble Storage, Inc.*		1,408		10,391
Quantum Corp.* (a)		46,112		21,225
SanDisk Corp.		4,752		357,018
Seagate Technology PLC		7,392		160,924
Super Micro Computer, Inc.*		6,688		179,974
Western Digital Corp.(a)		5,632		230,152
				24,406,694
Textiles, Apparel & Luxury Goods – 0.8%
Carter’s, Inc.		1,408		150,191
Coach, Inc.(a)		1,760		70,875
Columbia Sportswear Co.(a)		2,112		123,700
Deckers Outdoor Corp.* (a)		4,928		284,888
Fossil Group, Inc.*		13,200		534,600
G-III Apparel Group Ltd.*		4,224		191,136
Hanesbrands, Inc.		5,632		163,497
Iconix Brand Group, Inc.* (a)		7,392		62,684
Kate Spade & Co.* (a)		7,040		181,139
lululemon athletica, Inc.* (a)		2,640		173,052
Michael Kors Holdings Ltd.*		4,752		245,488
Movado Group, Inc.(a)		352		9,930
NIKE, Inc., Class B		31,328		1,846,472
Oxford Industries, Inc.		704		46,760
Perry Ellis International, Inc.*		1,232		23,470
PVH Corp.		880		84,128
Ralph Lauren Corp.(a)		1,760		164,050
Sequential Brands Group, Inc.* (a)		176		977
Skechers USA, Inc., Class A* (a)		7,920		261,756
Steven Madden Ltd.* (a)		3,168		110,912
Under Armour, Inc., Class A* (a)		3,168		139,202


	Shares		Value
Textiles, Apparel & Luxury Goods – (continued)
Under Armour, Inc., Class C*		3,168	$	129,254
Unifi, Inc.*		704		18,135
Vera Bradley, Inc.*		5,456		95,698
VF Corp.		8,272		521,550
Wolverine World Wide, Inc.(a)		30,800		583,660
				6,217,204
Thrifts & Mortgage Finance – 0.6%
Astoria Financial Corp.(a)		11,616		174,705
Beneficial Bancorp, Inc.*		3,872		53,782
BofI Holding, Inc.* (a)		10,560		215,107
Capitol Federal Financial, Inc.(a)		880		11,695
Dime Community Bancshares, Inc.		12,144		219,928
Essent Group Ltd.* (a)		9,504		194,072
EverBank Financial Corp.		11,088		167,207
Federal Agricultural Mortgage Corp., Class C		3,520		143,194
Flagstar Bancorp, Inc.* (a)		6,512		154,139
HomeStreet, Inc.* (a)		4,576		98,613
LendingTree, Inc.* (a)		352		31,493
MGIC Investment Corp.*		25,872		187,055
Nationstar Mortgage Holdings, Inc.* (a)		3,344		38,757
New York Community Bancorp, Inc.		25,520		383,566
Northfield Bancorp, Inc.		3,696		58,619
Northwest Bancshares, Inc.		1,408		19,740
Ocwen Financial Corp.*		10,384		23,468
Oritani Financial Corp.		704		12,200
PHH Corp.* (a)		3,168		40,645
Provident Financial Services, Inc.(a)		10,736		214,505
Radian Group, Inc.		49,808		637,044
TFS Financial Corp.		1,936		34,654
TrustCo Bank Corp.		15,312		98,150
United Financial Bancorp, Inc.(a)		1,936		25,129
Walker & Dunlop, Inc.* (a)		7,920		174,636
Washington Federal, Inc.(a)		25,520		619,881
WSFS Financial Corp.		3,696		126,181
				4,158,165

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			63

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Tobacco – 1.0%
Altria Group, Inc.		45,232	$	2,836,499
Philip Morris International, Inc.		34,672		3,402,017
Reynolds American, Inc.		19,008		942,797
Universal Corp.(a)		6,864		374,431
Vector Group Ltd.		8,624		186,278
				7,742,022
Trading Companies & Distributors – 0.6%
Air Lease Corp.(a)		27,456		836,859
Aircastle Ltd.(a)		20,064		435,389
Applied Industrial Technologies, Inc.(a)		5,808		266,181
Beacon Roofing Supply, Inc.* (a)		4,752		203,053
Fastenal Co.		2,992		139,996
GATX Corp.(a)		6,688		307,247
H&E Equipment Services, Inc.(a)		1,408		28,484
HD Supply Holdings, Inc.*		1,408		48,266
Kaman Corp.(a)		4,400		185,196
MRC Global, Inc.* (a)		16,192		226,364
MSC Industrial Direct Co., Inc., Class A(a)		3,872		300,080
NOW, Inc.*		30,448		549,891
Real Industry, Inc.*		176		1,556
TAL International Group, Inc.*		13,024		222,710
United Rentals, Inc.*		1,408		94,237
Univar, Inc.*		4,752		82,685
W.W. Grainger, Inc.(a)		528		123,827
Watsco, Inc.		1,760		236,667
WESCO International, Inc.* (a)		6,688		393,187
				4,681,875
Transportation Infrastructure – 0.0%^†
Wesco Aircraft Holdings, Inc.* (a)		9,680		139,682
Water Utilities – 0.1%
American States Water Co.(a)		3,520		146,749
American Water Works Co., Inc.		2,992		217,698
Aqua America, Inc.(a)		1,760		55,722


	Shares		Value
Water Utilities – (continued)
California Water Service Group(a)		3,344	$	93,398
Connecticut Water Service, Inc.(a)		352		16,551
SJW Corp.		528		18,168
				548,286
Wireless Telecommunication Services – 0.2%
Boingo Wireless, Inc.* (a)		3,520		27,069
NII Holdings, Inc.* (a)		30,800		162,624
Shenandoah Telecommunications Co.(a)		5,984		171,681
Spok Holdings, Inc.		1,936		32,893
Sprint Corp.* (a)		9,152		31,391
Telephone & Data Systems, Inc.		28,160		832,691
T-Mobile U.S., Inc.*		5,104		200,485
United States Cellular Corp.*		3,344		142,588
				1,601,422
Total Common Stocks (Cost $577,734,576)				739,065,423
	No. of Rights
RIGHTS – 0.0%
Dyax Corp.* ^		7,175		—
Leap Wireless International, Inc.* ^		12,069		—
Total Rights (Cost $–)				—
	Principal Amount
SECURITIES LENDING REINVESTMENTS(b) – 21.2%
BANK NOTE – 0.4%
Bank of America N.A., Charlotte 0.78%, due 09/06/2016	$	3,000,000		3,000,000
Total Bank Note (Cost $3,000,000)				3,000,000

See Accompanying Notes to the Financial Statements.


64		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


	Principal Amount		Value
SECURITIES LENDING REINVESTMENTS(b) – (continued)
CERTIFICATES OF DEPOSITS – 9.6%
Branch Banking & Trust Co.
0.56%, due 06/21/2016	$	4,000,000	$	4,000,000
Chiba Bank Ltd., New York Branch
0.61%, due 06/27/2016		4,000,000		4,000,000
Cooperatieve Rabobank UA, Netherlands
0.58%, due 05/02/2016		5,000,000		5,000,000
Credit Industriel et Commercial, New York
0.82%, due 08/22/2016		2,000,000		1,999,880
Credit Suisse AG, New York
0.63%, due 05/03/2016		3,200,000		3,200,000
0.87%, due 07/22/2016		4,000,000		3,999,836
1.00%, due 09/07/2016		2,000,000		2,003,980
KBC Bank N.V., Brussels
0.70%, due 05/03/2016		4,000,000		3,999,922
Landesbank Baden-Wuerttemberg, New York
0.55%, due 05/12/2016		7,000,000		7,000,000
Mitsubishi UFJ Trust & Banking Corp., New York
0.82%, due 09/02/2016		2,000,000		1,999,866
Mizuho Bank Ltd., New York
0.82%, due 08/05/2016		3,000,000		2,999,838
Mizuho Corporate Bank Ltd., London
0.72%, due 06/30/2016		5,500,000		5,495,820
Norinchukin Bank, New York
0.60%, due 06/13/2016		4,000,000		4,000,000
0.81%, due 09/16/2016		4,000,000		3,999,536
Societe Generale, New York
0.57%, due 07/05/2016		1,000,000		1,000,533
Standard Chartered Bank, New York
0.63%, due 06/17/2016		4,000,000		4,000,000
Sumitomo Mitsui Banking Corp., New York
0.84%, due 07/11/2016		4,000,000		3,999,840
Sumitomo Mitsui Trust Bank Ltd., New York
0.71%, due 08/01/2016		3,000,000		3,003,036


	Principal Amount		Value
CERTIFICATES OF DEPOSITS – (continued)
UBS AG, Stamford
0.82%, due 08/02/2016	$	3,500,000	$	3,499,815
Wells Fargo Bank San Francisco N.A.
0.79%, due 07/21/2016		3,000,000		2,999,871
Total Certificates of Deposits (Cost $72,193,444)				72,201,773

COMMERCIAL PAPERS – 2.4%
Abbey National Treasury Services PLC
0.63%, due 05/13/2016		4,000,000		3,999,230
ABN Amro Funding USA LLC
0.62%, due 05/17/2016		4,000,000		3,998,967
0.62%, due 06/02/2016		4,000,000		3,997,864
Engie S.A.
0.70%, due 05/23/2016		3,000,000		2,998,775
Toyota Motor Credit Corp.
0.70%, due 08/23/2016		3,000,000		2,999,814
Total Commercial Papers (Cost $17,994,836)				17,994,650

MASTER DEMAND NOTE – 0.3%
Natixis Financial Products LLC
0.64%, due 05/02/2016		2,500,000		2,500,000
Total Master Demand Note (Cost $2,500,000)				2,500,000

MONEY MARKET FUNDS(c) – 4.8%
BlackRock Cash Funds – Prime, Institutional Class
0.46%		3,000,000		3,000,000
BlackRock Liquidity Funds, TempFund, Institutional Class
0.42%		5,400,000		5,400,000
Dreyfus Cash Advantage Fund, Institutional Class
0.37%		6,400,000		6,400,000
Fidelity Money Market Portfolio, Institutional Class
0.38%		8,900,000		8,900,000

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			65

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)


	Principal Amount		Value
SECURITIES LENDING REINVESTMENTS(b) – (continued)
MONEY MARKET FUNDS(c) – (continued)
Fidelity Prime Money Market Portfolio, Institutional Class
0.44%	$	6,400,000	$	6,400,000
Morgan Stanley Liquidity Funds – Prime, Institutional Class
0.39%		5,400,000		5,400,000
Total Money Market Funds (Cost $35,500,000)				35,500,000

REPURCHASE AGREEMENTS – 3.3%
Citigroup Global Markets, Inc., 0.31%, dated 04/29/2016, due 05/02/2016, repurchase price $12,209,857, collateralized by various U.S. Treasury Securities, ranging from 0.00% – 6.63%, maturing 11/15/2026 – 02/15/2046; U.S. Government Agency Mortgage Securities, ranging from 2.00% – 8.00%, maturing 07/20/2026 – 04/20/2046; total market value $12,454,999		12,209,542		12,209,542
Credit Suisse Securities USA LLC, 0.44%, dated 04/29/2016, due 05/02/2016, repurchase price $13,000,477, collateralized by various Common Stocks; total market value $14,444,621		13,000,000		13,000,000
Total Repurchase Agreements (Cost $25,209,542)				25,209,542


	Principal Amount		Value
TIME DEPOSIT – 0.4%
Shinkin Central Bank
0.75%, due 07/08/2016	$	3,000,000	$	3,000,000
Total Time Deposit (Cost $3,000,000)				3,000,000
Total Securities Lending Reinvestments (Cost $159,397,822)				159,405,965
Total Investment Securities (Cost $737,132,398) – 119.6%				898,471,388
Liabilities in excess of other assets – (19.6%)				(147,261,731	)
Net Assets – 100.0%			$	751,209,657

*	Non-income producing security.

^‡	Investment in affiliated company. Northern Trust Investments, Inc., the Investment Adviser of the Fund, is a subsidiary of Northern Trust Corporation.

^	Security fair valued in accordance with procedures adopted by the Board of Trustees. At 04/30/2016, the value of these securities amounted to $0 or 0.00% of net assets.

^†	Amount represents less than 0.05%.

^(a)

The security or a portion of this security is on loan at 04/30/2016. The total value of securities on loan at 04/30/2016 was $158,167,294, which was collateralized in the form of cash with a value of $159,364,590; $2,672,650 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 8.88%, and maturity dates ranging from 05/19/2016 – 05/15/2045 and $261,003 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 6.50%, and maturity dates ranging from 07/26/2016 – 04/25/2060; a total value of $162,298,243.

^(b)

The security was purchased with cash collateral held from securities on loan at 04/30/2016. The total value of securities purchased was $159,405,965.

^(c)

Represents 7-day effective yield as of 04/30/2016.

Percentages shown are based on Net Assets.

Abbreviation:

REIT – Real Estate Investment Trust

See Accompanying Notes to the Financial Statements.


66		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar US Market Factor Tilt Index Fund (cont.)

As of April 30, 2016, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:



Aggregate gross unrealized appreciation	$	170,558,932
Aggregate gross unrealized depreciation		(9,120,630	)
Net unrealized appreciation	$	161,438,302
Federal income tax cost of investments	$	737,033,086

Investment in a company which was affiliated for the period ending April 30, 2016, was as follows:


Security	Value October 31, 2015		Purchases at Cost		Sales at Cost		Value April 30, 2016		Dividend Income		Realized Gain
Northern Trust Corp.	$	431,139	$	4,792	$	1,328	$	437,853	$	4,410	$	1,219

Futures Contracts

FlexShares^® Morningstar US Market Factor Tilt Index Fund had the following open long futures contracts as of April 30, 2016:


	Number of Contracts		Expiration Date		Notional Amount at Value		Unrealized Appreciation
E-mini S&P 400^® Index Futures Contracts		8		06/17/2016	$	1,166,640	$	44,348
E-mini S&P 500^® Index Futures Contracts		75		06/17/2016		7,721,625		219,661
Russell 2000^® Mini Index Futures Contracts		28		06/17/2016		3,160,360		156,511
							$	420,520

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			67

Schedule of Investments

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

April 30, 2016 (Unaudited)


	Shares		Value
COMMON STOCKS – 98.9%
Aerospace & Defense – 0.8%
Airbus Group SE		12,707	$	794,792
Austal Ltd.		188,320		224,198
BAE Systems PLC		71,776		501,855
Bombardier, Inc., Class B* (a)		68,080		102,723
CAE, Inc.		7,384		87,481
Cobham PLC		21,560		48,638
Elbit Systems Ltd.		412		41,261
Finmeccanica SpA*		10,266		129,693
Kongsberg Gruppen ASA(a)		2,303		38,610
LISI		12,650		362,072
MacDonald Dettwiler & Associates Ltd.		250		17,544
Meggitt PLC		25,746		154,897
MTU Aero Engines AG		499		47,105
QinetiQ Group PLC		16,022		52,504
Rolls-Royce Holdings PLC*		42,570		417,505
Rolls-Royce Holdings PLC – Entitlement*		3,022,470		4,428
Saab AB, Class B(a)		1,995		68,312
Safran S.A.		7,315		504,118
Senior PLC(a)		246,961		787,218
Singapore Technologies Engineering Ltd.		57,000		136,557
Thales S.A.		2,643		228,551
Ultra Electronics Holdings PLC(a)		2,306		59,657
Zodiac Aerospace		5,210		122,180
				4,931,899
Air Freight & Logistics – 0.5%
Bollore S.A.		8,952		35,476
CTT-Correios de Portugal S.A.		6,883		63,604
CWT Ltd.		147,700		227,476
Deutsche Post AG (Registered)		18,931		555,942
Freightways Ltd.		5,961		27,594
Kerry Logistics Network Ltd.		26,000		36,668
Kintetsu World Express, Inc.		1,600		21,743
Konoike Transport Co., Ltd.		19,200		231,846
Mainfreight Ltd.		3,192		36,583
Oesterreichische Post AG* (a)		1,006		39,302
Panalpina Welttransport Holding AG (Registered)		11		1,287


	Shares		Value
Air Freight & Logistics – (continued)
PostNL N.V.*		262,955	$	1,150,490
Royal Mail PLC		31,859		227,237
Singapore Post Ltd.		5,000		5,841
TNT Express N.V.*		13,163		119,509
Yamato Holdings Co., Ltd.		7,000		145,829
Yusen Logistics Co., Ltd.		12,100		146,790
				3,073,217
Airlines – 0.5%
Aegean Airlines S.A.		20,905		191,788
Air France-KLM*		92,510		829,850
Air New Zealand Ltd.		16,100		27,694
ANA Holdings, Inc.		35,000		100,752
Cathay Pacific Airways Ltd.		27,000		43,160
Dart Group PLC		50,878		465,447
Deutsche Lufthansa AG (Registered)		6,000		93,186
easyJet PLC		9,298		200,632
International Consolidated Airlines Group S.A.		24,282		186,746
Japan Airlines Co., Ltd.		6,000		221,674
Norwegian Air Shuttle ASA* (a)		516		23,774
Qantas Airways Ltd.*		28,291		69,521
SAS AB* (a)		77,935		223,436
Singapore Airlines Ltd.		9,900		84,707
Virgin Australia Holdings Ltd.*		108,255		28,915
WestJet Airlines Ltd.		5,880		98,579
Wizz Air Holdings PLC* (b)		2,172		59,817
				2,949,678
Auto Components – 2.5%
Aisan Industry Co., Ltd.		17,308		134,426
Aisin Seiki Co., Ltd.		6,300		254,956
ARB Corp. Ltd.		1,725		21,221
Autoneum Holding AG(a)		1,705		406,816
Brembo SpA		2,707		145,443
Bridgestone Corp.		23,400		900,177
Calsonic Kansei Corp.		6,000		43,011
Cie Generale des Etablissements Michelin		6,500		678,591
Continental AG		2,655		583,245
Daikyonishikawa Corp.		29,104		415,907

See Accompanying Notes to the Financial Statements.


68		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Auto Components – (continued)
Denso Corp.		9,900	$	393,335
Eagle Industry Co., Ltd.		15,500		215,417
ElringKlinger AG(a)		18,878		462,060
Exedy Corp.(a)		19,300		468,272
F.C.C. Co., Ltd.		20,400		355,205
Faurecia		3,434		141,868
GKN PLC		54,673		223,212
HI-LEX Corp.		3,164		82,416
Hybrid Kinetic Group Ltd.*		548,000		17,167
Keihin Corp.		24,800		377,580
Koito Manufacturing Co., Ltd.		2,000		90,472
KYB Corp.		171,000		594,532
Leoni AG(a)		19,620		707,074
Linamar Corp.		2,603		112,902
Magna International, Inc.		13,756		578,749
Martinrea International, Inc.		56,114		425,133
Mitsuba Corp.		29,500		440,315
Musashi Seimitsu Industry Co., Ltd.		11,600		231,360
NGK Spark Plug Co., Ltd.(a)		6,200		130,438
NHK Spring Co., Ltd.		7,000		64,508
Nifco, Inc.		1,200		59,442
Nippon Seiki Co., Ltd.		32,000		627,170
Nissin Kogyo Co., Ltd.(a)		18,600		264,237
NOK Corp.(a)		3,800		66,272
Nokian Renkaat Oyj		3,001		110,746
Pacific Industrial Co., Ltd.		33,000		331,249
Plastic Omnium S.A.		2,503		82,908
Press Kogyo Co., Ltd.		53,400		189,654
Sanden Holdings Corp.(a)		77,000		237,488
Showa Corp.		26,000		234,011
Stanley Electric Co., Ltd.(a)		3,800		81,402
Sumitomo Electric Industries Ltd.		27,900		350,722
Sumitomo Riko Co., Ltd.		26,500		234,796
Sumitomo Rubber Industries Ltd.		4,000		63,554
Tachi-S Co., Ltd.		20,400		286,185
Takata Corp.(a)		19,900		76,442
Tokai Rika Co., Ltd.		2,600		50,520
Topre Corp.		25,300		518,793
Toyo Tire & Rubber Co., Ltd.		2,700		42,420
Toyoda Gosei Co., Ltd.		200		3,834
Toyota Boshoku Corp.		1,600		30,985


	Shares		Value
Auto Components – (continued)
Toyota Industries Corp.		5,500	$	250,082
TPR Co., Ltd.		17,400		456,975
TS Tech Co., Ltd.		1,100		26,288
Unipres Corp.(a)		23,600		434,525
Valeo S.A.		1,981		314,135
Xinyi Glass Holdings Ltd.		10,000		6,845
The Yokohama Rubber Co., Ltd.		2,500		43,927
Yorozu Corp.		11,600		241,118
				15,412,533
Automobiles – 2.8%
Bayerische Motoren Werke AG		11,773		1,085,479
Bayerische Motoren Werke AG (Preference)		2,288		181,736
Daihatsu Motor Co., Ltd.(a)		6,300		88,322
Daimler AG (Registered)		37,602		2,613,764
Fiat Chrysler Automobiles N.V.		36,270		291,208
Fuji Heavy Industries Ltd.		24,000		833,534
Honda Motor Co., Ltd.		64,500		1,803,975
Isuzu Motors Ltd.		23,200		259,223
Mazda Motor Corp.		21,200		345,655
Mitsubishi Motors Corp.(a)		24,600		103,233
Nissan Motor Co., Ltd.		99,000		925,277
Nissan Shatai Co., Ltd.		1,000		10,225
Peugeot S.A.*		19,320		311,011
Piaggio & C SpA(a)		4,425		9,797
Porsche Automobil Holding SE (Preference)		5,322		297,036
Renault S.A.(a)		7,868		759,499
Suzuki Motor Corp.		11,700		336,254
Toyota Motor Corp.		106,000		5,601,421
Volkswagen AG (Preference)		6,655		963,840
Yamaha Motor Co., Ltd.(a)		13,300		230,088
				17,050,577
Banks – 11.3%
The 77 Bank Ltd.		1,000		3,636
The Aichi Bank Ltd.		1,200		55,629
Aktia Bank Oyj		23,442		235,468
Alpha Bank AE*		51,290		112,203
The Aomori Bank Ltd.		31,000		96,771
Aozora Bank Ltd.		35,000		127,903
Ashikaga Holdings Co., Ltd.		4,100		12,492

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			69

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Banks – (continued)
Australia & New Zealand Banking Group Ltd.		115,060	$	2,131,101
The Awa Bank Ltd.		6,000		31,572
Banca Carige SpA* (a)		330,701		270,251
Banca Monte dei Paschi di Siena SpA*		62,319		50,428
Banca Popolare dell’Emilia Romagna SC		19,668		114,999
Banca Popolare di Milano Scarl		152,101		115,326
Banca Popolare di Sondrio Scarl		264,844		988,279
Banco Bilbao Vizcaya Argentaria S.A.		238,942		1,637,381
Banco BPI S.A. (Registered)* (a)		245,500		307,615
Banco Comercial Portugues S.A., Class R* (a)		941,037		41,712
Banco de Sabadell S.A.* ^		5,977		11,426
Banco de Sabadell S.A.		217,867		416,472
Banco Espirito Santo S.A. (Registered)* ^		48,647		557
Banco Popolare SC(a)		10,801		76,267
Banco Popular Espanol S.A.		56,584		153,920
Banco Santander S.A.		531,025		2,688,894
Bank Hapoalim BM		38,736		199,466
Bank Leumi Le-Israel BM*		55,496		204,588
The Bank of East Asia Ltd.(a)		46,745		170,235
Bank of Ireland*		705,815		214,227
The Bank of Iwate Ltd.		9,900		382,602
The Bank of Kyoto Ltd.		5,000		34,955
Bank of Montreal(a)		22,637		1,477,206
The Bank of Nagoya Ltd.		10,000		34,207
The Bank of Nova Scotia		41,085		2,158,225
The Bank of Okinawa Ltd.		1,700		57,755
Bank of Queensland Ltd.		17,065		146,511
Bank of the Ryukyus Ltd.		5,561		66,163
Bankia S.A.		129,318		120,417
Bankinter S.A.		19,979		152,309
Banque Cantonale Vaudoise (Registered)		50		34,507
Barclays PLC		550,606		1,383,289
Bendigo & Adelaide Bank Ltd.		17,451		124,121
Berner Kantonalbank AG (Registered)		259		53,124


	Shares		Value
Banks – (continued)
BGEO Group PLC(a)		23,901	$	801,788
BNP Paribas S.A.		36,964		1,957,650
CaixaBank S.A.(a)		61,144		184,112
Canadian Imperial Bank of Commerce		12,652		1,023,594
Canadian Western Bank		1,676		37,036
The Chiba Bank Ltd.		23,000		121,239
The Chugoku Bank Ltd.(a)		1,000		10,730
comdirect bank AG		411		4,674
Commerzbank AG		52,043		486,397
Commonwealth Bank of Australia		35,493		2,001,420
Concordia Financial Group Ltd.*		74,721		357,840
Credit Agricole S.A.		46,367		512,955
Credito Emiliano SpA		4,982		35,977
Credito Valtellinese SC*		67,009		52,266
Dah Sing Banking Group Ltd.		24,640		43,961
Dah Sing Financial Holdings Ltd.		5,340		36,588
The Daishi Bank Ltd.		8,000		28,712
Danske Bank A/S		17,548		496,333
DBS Group Holdings Ltd.		56,858		646,397
DNB ASA(a)		32,562		416,915
The Eighteenth Bank Ltd.		28,000		68,302
Erste Group Bank AG*		9,961		286,590
Eurobank Ergasias S.A.*		1,058,853		897,440
FIBI Holdings Ltd.		5,441		80,263
Fukuoka Financial Group, Inc.		30,000		105,986
The Gunma Bank Ltd.(a)		2,000		8,206
The Hachijuni Bank Ltd.		15,000		67,994
Hang Seng Bank Ltd.(a)		16,500		299,915
Heartland Bank Ltd.		260,138		220,101
The Hiroshima Bank Ltd.		17,000		63,872
The Hokkoku Bank Ltd.		17,000		49,255
The Hokuetsu Bank Ltd.		138,000		243,768
Hokuhoku Financial Group, Inc.(a)		32,000		41,871
HSBC Holdings PLC		698,016		4,626,919
The Hyakugo Bank Ltd.(a)		23,000		87,920
The Hyakujushi Bank Ltd.		10,000		29,628
ING Groep N.V. (CVA)		139,150		1,704,520
Intesa Sanpaolo SpA		324,403		899,163
Intesa Sanpaolo SpA (Retirement Savings Plan)		10,035		26,389

See Accompanying Notes to the Financial Statements.


70		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Banks – (continued)
Israel Discount Bank Ltd., Class A*		32,350	$	54,213
The Iyo Bank Ltd.		6,000		41,049
The Joyo Bank Ltd.		23,000		83,191
The Juroku Bank Ltd.		19,000		57,891
Jyske Bank A/S (Registered)		1,894		77,558
Kansai Urban Banking Corp.		5,900		57,790
KBC Groep N.V.		7,480		420,051
The Keiyo Bank Ltd.		5,000		18,926
The Kiyo Bank Ltd.		38,900		484,637
Kyushu Financial Group, Inc.(a)		16,670		90,677
Laurentian Bank of Canada(a)		17,498		695,394
Liberbank S.A.* (a)		239,393		287,898
Liechtensteinische Landesbank AG		7,840		324,315
Lloyds Banking Group PLC		2,098,848		2,062,136
Luzerner Kantonalbank AG (Registered)		162		69,592
The Minato Bank Ltd.		29,000		42,553
Mitsubishi UFJ Financial Group, Inc.		520,400		2,529,651
Mizrahi Tefahot Bank Ltd.		4,192		48,631
Mizuho Financial Group, Inc.		900,100		1,411,625
The Musashino Bank Ltd.		3,200		83,862
The Nanto Bank Ltd.		23,468		67,775
National Australia Bank Ltd.		97,790		2,029,147
National Bank of Canada		11,006		393,988
National Bank of Greece S.A.*		75,123		22,371
Natixis S.A.		32,749		180,681
The Nishi-Nippon City Bank Ltd.		18,000		33,646
Nordea Bank AB		116,395		1,130,950
North Pacific Bank Ltd.		6,000		15,758
The Ogaki Kyoritsu Bank Ltd.		35,000		111,220
The Oita Bank Ltd.		18,000		56,358
Oversea-Chinese Banking Corp. Ltd.(a)		106,735		696,452
Permanent TSB Group Holdings PLC*		9,152		28,658
Piraeus Bank S.A.*		3,312,713		986,496
Public Financial Holdings Ltd.		98,000		44,975
Raiffeisen Bank International AG* (a)		2,526		40,374


	Shares		Value
Banks – (continued)
Resona Holdings, Inc.		78,500	$	288,483
Royal Bank of Canada		57,569		3,581,172
Royal Bank of Scotland Group PLC*		53,395		179,902
The San-In Godo Bank Ltd.		6,000		40,151
Senshu Ikeda Holdings, Inc.(a)		160,500		622,529
Seven Bank Ltd.		19,000		83,639
Shawbrook Group PLC* (a) (b)		1,477		6,201
The Shiga Bank Ltd.(a)		1,000		4,505
Shinsei Bank Ltd.		86,000		125,389
The Shizuoka Bank Ltd.		9,000		69,396
Skandinaviska Enskilda Banken AB, Class A		75,076		717,777
Societe Generale S.A.		28,177		1,105,334
Spar Nord Bank A/S		53,028		432,495
SpareBank 1 SMN		87,835		539,946
St. Galler Kantonalbank AG (Registered)		1,504		622,940
Standard Chartered PLC		104,094		841,882
Sumitomo Mitsui Financial Group, Inc.		51,500		1,642,782
Sumitomo Mitsui Trust Holdings, Inc.		145,000		467,003
Suruga Bank Ltd.		4,700		94,883
Svenska Handelsbanken AB, Class A		31,023		413,385
Swedbank AB, Class A		44,116		952,439
Sydbank A/S		2,684		75,915
The Tochigi Bank Ltd.		16,000		63,704
The Toho Bank Ltd.		22,732		77,547
TOMONY Holdings, Inc.		75,000		222,207
The Toronto-Dominion Bank		36,356		1,621,014
UniCredit SpA		189,216		731,208
Unione di Banche Italiane SpA		19,604		83,123
United Overseas Bank Ltd.		60,544		837,855
Valiant Holding AG (Registered)(a)		1,067		118,333
Van Lanschot N.V. (CVA)		22,165		469,654
Westpac Banking Corp.		66,864		1,584,396
The Yamagata Bank Ltd.		13,000		48,479
Yamaguchi Financial Group, Inc.(a)		8,000		76,639
The Yamanashi Chuo Bank Ltd.		17,000		64,984

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			71

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Banks – (continued)
Zuger Kantonalbank AG		4	$	20,611
				69,467,286
Beverages – 1.3%
Anheuser-Busch InBev S.A./N.V.(a)		18,104		2,241,498
Asahi Group Holdings Ltd.		11,800		386,992
Britvic PLC		7,536		77,718
C&C Group PLC		16,797		75,472
Carlsberg A/S, Class B		2,384		232,226
Coca-Cola Amatil Ltd.		11,766		77,221
Coca-Cola East Japan Co., Ltd.		2,606		49,151
Coca-Cola HBC AG*		4,146		85,029
Coca-Cola West Co., Ltd.		1,000		27,945
Cott Corp.		2,560		33,988
Davide Campari-Milano SpA		6,897		66,593
Diageo PLC		47,825		1,293,286
Heineken Holding N.V.		2,860		236,145
Heineken N.V.(a)		4,635		434,517
Ito En Ltd.		200		6,281
Kirin Holdings Co., Ltd.		15,738		234,095
Molson Coors Canada, Inc., Class B		620		59,184
Pernod-Ricard S.A.		4,237		457,527
Royal Unibrew A/S		3,508		158,495
SABMiller PLC		21,175		1,298,156
Sapporo Holdings Ltd.		2,000		11,010
Suntory Beverage & Food Ltd.		3,000		134,305
Takara Holdings, Inc.		3,000		26,216
Treasury Wine Estates Ltd.		26,475		188,305
				7,891,355
Biotechnology – 0.4%
Abcam PLC(a)		7,151		61,910
Actelion Ltd. (Registered)*		2,557		413,495
Basilea Pharmaceutica AG (Registered)*		211		17,292
Bavarian Nordic A/S*		1,078		41,141
Cellectis S.A.*		809		22,442
Circassia Pharmaceuticals PLC*		13,622		53,918
CK Life Sciences Int’l Holdings, Inc.		48,000		4,579


	Shares		Value
Beverages – (continued)
CSL Ltd.		10,420	$	836,394
DBV Technologies S.A.*		882		60,319
Galapagos N.V.*		1,372		62,370
Genmab A/S*		1,169		173,237
Genus PLC(a)		2,539		55,791
Grifols S.A.		5,460		118,787
Grifols S.A. (Preference), Class B		4,876		76,818
Mesoblast Ltd.*		14,771		24,687
PeptiDream, Inc.*		400		23,777
ProMetic Life Sciences, Inc.* (a)		22,375		58,411
Sirtex Medical Ltd.		769		17,453
Swedish Orphan Biovitrum AB* (a)		6,087		88,849
Takara Bio, Inc.		200		2,770
				2,214,440
Building Products – 0.9%
Aica Kogyo Co., Ltd.		1,500		34,852
Asahi Glass Co., Ltd.		26,000		157,708
Assa Abloy AB, Class B		25,633		538,065
Belimo Holding AG (Registered)		21		60,031
Bunka Shutter Co., Ltd.		38,500		335,361
Central Glass Co., Ltd.		119,000		686,228
Cie de Saint-Gobain		10,533		482,499
Daikin Industries Ltd.		6,800		564,617
Geberit AG (Registered)		937		360,039
GWA Group Ltd.		7,406		13,056
James Halstead PLC		4,475		27,402
Kingspan Group PLC		2,446		64,435
LIXIL Group Corp.		8,800		189,332
Nibe Industrier AB, Class B		3,853		133,997
Nichias Corp.(a)		73,000		485,780
Nichiha Corp.(a)		16,500		260,465
Nippon Sheet Glass Co., Ltd.*		40,000		32,151
Nitto Boseki Co., Ltd.		9,000		28,768
Noritz Corp.		28,000		480,471
Rockwool International A/S, Class B		82		13,666
Sankyo Tateyama, Inc.		15,600		220,743
Sanwa Holdings Corp.		8,000		64,152
Sekisui Jushi Corp.		19,600		280,092
Takara Standard Co., Ltd.		5,752		51,448

See Accompanying Notes to the Financial Statements.


72		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Building Products – (continued)
Takasago Thermal Engineering Co., Ltd.		1,200	$	15,466
Tarkett S.A.		1,548		50,531
TOTO Ltd.		3,000		106,687
Uponor Oyj		1,813		27,971
				5,766,013
Capital Markets – 1.8%
3i Group PLC		39,200		271,960
Aberdeen Asset Management PLC		28,016		122,588
Alaris Royalty Corp.		1,680		40,250
Allied Minds PLC* (a)		8,967		50,467
Allied Properties HK Ltd.		848,000		159,604
Anima Holding SpA(b)		3,753		26,565
ARA Asset Management Ltd.		17,936		15,813
Ashmore Group PLC		16,969		76,338
Avanza Bank Holding AB		807		31,737
Azimut Holding SpA		3,015		75,902
Brederode S.A.		950		42,859
Brewin Dolphin Holdings PLC(a)		7,312		29,349
BT Investment Management Ltd.		6,705		50,606
China Medical & HealthCare Group Ltd.*		1,670,000		96,878
CI Financial Corp.		4,091		90,730
Close Brothers Group PLC(a)		7,612		135,148
Credit Suisse Group AG (Registered)* (a)		58,861		894,736
Daiwa Securities Group, Inc.		67,000		404,649
Deutsche Bank AG (Registered)		49,933		941,932
EFG International AG*		7,120		44,495
Emperor Capital Group Ltd.		1,650,000		146,767
Financiere de Tubize S.A.		179		11,327
Flow Traders(b)		620		24,645
Freeman Financial Corp. Ltd.*		480,000		26,298
GAM Holding AG* (a)		2,188		28,534
Gimv N.V.		345		19,164
Gluskin Sheff + Associates, Inc.		1,600		22,813
Guoco Group Ltd.		3,000		33,047
Haitong International Securities Group Ltd.		77,922		45,103
Hargreaves Lansdown PLC		5,061		95,342


	Shares		Value
Capital Markets – (continued)
HBM Healthcare Investments AG, Class A*		3,850	$	403,678
Henderson Group PLC		12,382		46,362
ICAP PLC		17,280		118,594
Ichigo, Inc.		9,700		43,607
IGM Financial, Inc.		3,577		112,798
Intermediate Capital Group PLC		13,668		122,937
Investec PLC		24,593		188,417
IOOF Holdings Ltd.		11,826		80,684
IP Group PLC*		24,291		61,169
Jafco Co., Ltd.		300		8,720
Julius Baer Group Ltd.*		5,062		216,581
Jupiter Fund Management PLC		12,914		79,625
kabu.com Securities Co., Ltd.		4,000		13,272
Leonteq AG*		175		12,187
Macquarie Group Ltd.		7,610		368,781
Magellan Financial Group Ltd.		4,385		71,948
Man Group PLC		76,910		166,294
Mason Financial Holdings Ltd.*		4,630,953		191,036
Matsui Securities Co., Ltd.		1,300		11,579
Mediobanca SpA		15,256		125,372
Monex Group, Inc.		4,200		11,227
Nihon M&A Center, Inc.		1,100		65,181
Nomura Holdings, Inc.		135,800		607,829
Okasan Securities Group, Inc.		4,000		22,020
Partners Group Holding AG(a)		552		227,480
Perpetual Ltd.		216		7,047
Platinum Asset Management Ltd.		10,774		49,826
Rathbone Brothers PLC(a)		1,817		54,113
Ratos AB, Class B(a)		11,263		65,957
ReOrient Group Ltd.*		220,000		154,566
Rothschild & Co.		1,529		38,265
SBI Holdings, Inc.		5,200		56,474
Schroders PLC		2,873		105,806
Schroders PLC (Non-Voting)		1,249		35,770
SVG Capital PLC* (a)		58,446		440,930
Tetragon Financial Group Ltd.		57,263		558,314
Tokai Tokyo Financial Holdings, Inc.		2,200		11,905
Tullett Prebon PLC(a)		143,173		710,369
UBS Group AG (Registered)		77,507		1,342,323
UOB-Kay Hian Holdings Ltd.		37,825		38,837
Value Partners Group Ltd.(a)		21,000		20,168

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			73

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Capital Markets – (continued)
Vontobel Holding AG (Registered)		339	$	14,678
VZ Holding AG		178		55,433
				11,193,805
Chemicals – 3.0%
ADEKA Corp.		4,200		61,119
Agrium, Inc.		3,219		277,853
Air Liquide S.A.		7,572		858,586
Air Water, Inc.		6,000		93,425
Akzo Nobel N.V.		7,319		518,813
Arkema S.A.		3,476		277,413
Asahi Kasei Corp.		44,000		312,415
BASF SE		17,876		1,477,219
Borregaard ASA		63,205		472,918
C Uyemura & Co., Ltd.		3,200		141,016
Chr Hansen Holding A/S		3,302		205,540
Chugoku Marine Paints Ltd.		39,000		283,219
Clariant AG (Registered)*		8,710		164,931
Corbion N.V.		1,225		31,274
Covestro AG* (b)		2,254		89,117
Croda International PLC		3,522		155,349
Daicel Corp.		6,000		77,667
Dainichiseika Color & Chemicals Manufacturing Co., Ltd.		65,000		275,807
Denka Co., Ltd.		9,000		39,198
DIC Corp.		17,000		40,834
DuluxGroup Ltd.		12,466		60,886
Elementis PLC		5,547		17,544
EMS-Chemie Holding AG (Registered)(a)		114		56,405
Essentra PLC(a)		4,084		48,579
Evonik Industries AG		3,801		120,439
Frutarom Industries Ltd.		1,635		83,885
FUCHS PETROLUB SE		54		1,992
FUCHS PETROLUB SE (Preference)		2,375		101,613
Fujimori Kogyo Co., Ltd.		7,700		185,096
Givaudan S.A. (Registered)		220		433,803
Hexpol AB		5,994		62,014
Hitachi Chemical Co., Ltd.		1,700		29,807
Incitec Pivot Ltd.		51,105		125,583


	Shares		Value
Chemicals – (continued)
Israel Chemicals Ltd.		16,480	$	81,859
The Israel Corp. Ltd.		37		7,593
Johnson Matthey PLC(a)		3,636		153,772
JSP Corp.		7,700		136,160
JSR Corp.		3,900		55,441
K+S AG (Registered)(a)		7,340		183,102
Kaneka Corp.		8,000		69,685
Kansai Paint Co., Ltd.		6,000		108,902
Kemira Oyj(a)		5,578		67,593
Koninklijke DSM N.V.		2,090		128,211
Kumiai Chemical Industry Co., Ltd.		5,000		44,441
Kuraray Co., Ltd.		11,200		147,177
Kureha Corp.		81,000		285,406
Lanxess AG		2,824		147,702
Lenzing AG		485		37,590
Linde AG		3,742		571,739
Lintec Corp.		1,800		35,800
Methanex Corp.(a)		4,146		145,239
Mitsubishi Chemical Holdings Corp.		55,500		301,789
Mitsubishi Gas Chemical Co., Inc.		11,000		62,405
Mitsui Chemicals, Inc.		30,000		104,304
Nihon Nohyaku Co., Ltd.		30,100		163,166
Nihon Parkerizing Co., Ltd.		68,000		624,739
Nippon Kayaku Co., Ltd.		3,000		33,394
Nippon Paint Holdings Co., Ltd.(a)		3,000		82,770
Nippon Shokubai Co., Ltd.		1,200		64,938
Nippon Soda Co., Ltd.		85,198		463,435
The Nippon Synthetic Chemical Industry Co., Ltd.		24,000		148,269
Nissan Chemical Industries Ltd.(a)		3,800		104,984
Nitto Denko Corp.		3,300		186,166
NOF Corp.		8,000		64,975
Novozymes A/S, Class B		5,282		253,196
Nufarm Ltd.		12,612		67,566
Nuplex Industries Ltd.		101,673		374,670
Okamoto Industries, Inc.		3,000		22,852
Orica Ltd.(a)		13,035		152,199
Potash Corp. of Saskatchewan, Inc.		16,628		294,700

See Accompanying Notes to the Financial Statements.


74		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Chemicals – (continued)
Sakata INX Corp.		27,900	$	324,907
Sanyo Chemical Industries Ltd.		34,000		268,199
Shin-Etsu Chemical Co., Ltd.		7,500		434,810
Showa Denko KK(a)		30,000		32,244
Sika AG		74		315,224
Solvay S.A.(a)		3,839		388,079
Sumitomo Bakelite Co., Ltd.		112,000		478,377
Sumitomo Chemical Co., Ltd.		55,000		260,106
Sumitomo Seika Chemicals Co., Ltd.		25,000		123,838
Symrise AG		3,192		211,534
Syngenta AG (Registered)		1,996		799,649
Synthomer PLC		9,484		48,348
T Hasegawa Co., Ltd.		4,600		77,000
Taiyo Holdings Co., Ltd.		900		30,955
Teijin Ltd.		25,000		92,761
Tessenderlo Chemie N.V.*		786		27,016
Tikkurila Oyj		2,026		35,527
Toagosei Co., Ltd.		6,900		64,231
Tokai Carbon Co., Ltd.		11,000		29,814
Tokuyama Corp.* (a)		186,000		304,220
Toray Industries, Inc.		36,000		311,801
Tosoh Corp.		23,000		109,631
Toyo Ink SC Holdings Co., Ltd.		8,000		32,899
Toyobo Co., Ltd.		56,000		97,874
Ube Industries Ltd.		15,000		29,441
Umicore S.A.(a)		1,382		68,895
Victrex PLC(a)		1,130		23,175
Wacker Chemie AG		136		13,042
Yara International ASA		7,119		285,031
Zeon Corp.		5,000		36,871
				18,514,787
Commercial Services & Supplies – 1.2%
Aeon Delight Co., Ltd.		2,300		65,564
Aggreko PLC		8,745		139,251
Babcock International Group PLC		14,998		208,171
Berendsen PLC		7,513		129,868
Bilfinger SE(a)		27,612		1,203,821
Brambles Ltd.		33,260		316,772
Caverion Corp.		1,496		10,966


	Shares		Value
Commercial Services & Supplies – (continued)
Cleanaway Waste Management Ltd.		105,891	$	63,840
Dai Nippon Printing Co., Ltd.		9,000		87,565
Daiseki Co., Ltd.(a)		2,500		47,853
dorma+kaba Holding AG (Registered), Class B		50		32,447
Downer EDI Ltd.		274,597		779,558
Duskin Co., Ltd.(a)		200		3,744
Edenred(a)		6,576		129,698
Elis S.A.		1,315		24,151
G4S PLC		38,887		107,323
Gategroup Holding AG*		1,113		61,369
HomeServe PLC		7,320		44,415
Intrum Justitia AB		2,552		91,679
ISS A/S		2,459		93,391
Kokuyo Co., Ltd.		5,600		75,787
Lassila & Tikanoja Oyj		1,345		23,400
Loomis AB, Class B		2,597		72,124
Mineral Resources Ltd.		98,536		557,215
Mitie Group PLC(a)		214,874		853,968
Mitsubishi Pencil Co., Ltd.		900		44,497
Nissha Printing Co., Ltd.		900		14,905
Okamura Corp.		4,600		43,852
Park24 Co., Ltd.		2,200		63,433
PayPoint PLC		4,015		49,582
Pilot Corp.		2,600		107,042
Programmed Maintenance Services Ltd.(a)		149,105		166,702
Progressive Waste Solutions Ltd.		824		26,563
Prosegur Cia de Seguridad S.A.		19,123		110,608
Recall Holdings Ltd.^		894		5,683
Regus PLC		21,070		90,251
Relia, Inc.		2,100		22,434
Rentokil Initial PLC		66,614		171,843
Ritchie Bros Auctioneers, Inc.(a)		166		4,771
Sato Holdings Corp.		1,100		23,574
Secom Co., Ltd.		3,400		268,358
Securitas AB, Class B		10,196		161,154
Serco Group PLC* (a)		23,476		33,014
Societe BIC S.A.		1,163		165,107
Sohgo Security Services Co., Ltd.(a)		1,000		57,386
Spotless Group Holdings Ltd.		24,846		24,555

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			75

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Commercial Services & Supplies – (continued)
Tomra Systems ASA		3,486	$	40,478
Toppan Forms Co., Ltd.		2,200		25,003
Toppan Printing Co., Ltd.		12,000		106,211
Transcontinental, Inc., Class A		37,261		586,609
				7,637,555
Communications Equipment – 0.3%
Ei Towers SpA		231		13,546
Hitachi Kokusai Electric, Inc.		1,000		10,954
Japan Radio Co., Ltd.		18,000		46,096
Mitel Networks Corp.*		55,361		386,420
Nokia Oyj (Euronext)		35,470		208,450
Nokia Oyj (SIGMA X MTF)		84,639		499,248
Sierra Wireless, Inc.*		2,800		45,310
Telefonaktiebolaget LM Ericsson, Class A		1,434		11,833
Telefonaktiebolaget LM Ericsson, Class B		69,961		566,842
VTech Holdings Ltd.(a)		2,500		25,847
				1,814,546
Construction & Engineering – 3.0%
Abengoa S.A., Class B*		200,530		55,122
ACS Actividades de Construccion y Servicios S.A.		7,237		239,342
Aecon Group, Inc.		32,823		438,391
AF Gruppen ASA		1,188		19,475
Arcadis N.V.		41,483		710,550
Astaldi SpA(a)		27,940		137,029
Badger Daylighting Ltd.(a)		2,361		44,050
Balfour Beatty PLC*		27,952		97,699
Boskalis Westminster		1,345		56,082
Bouygues S.A.(a)		4,236		141,282
Carillion PLC(a)		259,444		1,117,375
Chiyoda Corp.(a)		4,000		31,628
Chudenko Corp.		2,300		46,798
Cie d’Entreprises CFE(a)		666		66,105
CIMIC Group Ltd.		1,935		52,851
COMSYS Holdings Corp.		2,000		30,955
Eiffage S.A.		2,165		172,164
Elecnor S.A.(a)		26,017		235,409
Electra Ltd.		552		74,226


	Shares		Value
Construction & Engineering – (continued)
Eltel AB* (a) (b)		25,080	$	300,899
Ferrovial S.A.		10,658		229,372
FLSmidth & Co. A/S		1,337		51,930
Fomento de Construcciones y Contratas S.A.*		4,405		38,253
Galliford Try PLC		46,809		874,960
Hazama Ando Corp.		110,700		555,595
HOCHTIEF AG		1,273		163,227
Hsin Chong Group Holdings Ltd.		902,000		94,186
Implenia AG (Registered)		9,020		602,274
Interserve PLC		86,470		541,260
JGC Corp.		10,928		192,423
Kajima Corp.		18,000		115,239
Kandenko Co., Ltd.(a)		7,000		51,030
Keller Group PLC		43,914		568,352
Kier Group PLC(a)		54,960		958,080
Kinden Corp.		2,000		24,076
Koninklijke BAM Groep N.V.		7,203		34,691
Kumagai Gumi Co., Ltd.		6,000		16,711
Kyowa Exeo Corp.		3,900		45,636
Kyudenko Corp.(a)		28,500		739,436
Maeda Corp.(a)		8,000		62,433
Maeda Road Construction Co., Ltd.		2,000		37,254
Metka S.A.		8,753		66,969
Mirait Holdings Corp.		38,600		349,220
NCC AB, Class A		1,880		64,093
NCC AB, Class B*		2,271		77,677
Nippo Corp.		2,000		33,721
Nippon Densetsu Kogyo Co., Ltd.		2,600		52,318
Nishimatsu Construction Co., Ltd.(a)		178,000		791,887
Obayashi Corp.		16,900		170,745
Obrascon Huarte Lain S.A.		77,221		546,679
OCI N.V.*		104		2,057
Okumura Corp.		14,000		75,630
Outotec Oyj* (a)		90,848		361,895
Peab AB		4,432		37,014
Penta-Ocean Construction Co., Ltd.		14,500		67,218
Porr Ag		7,150		226,433
Sacyr S.A.		208,945		444,887

See Accompanying Notes to the Financial Statements.


76		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Construction & Engineering – (continued)
Salini Impregilo SpA		109,430	$	479,033
Sanki Engineering Co., Ltd.		7,100		57,997
Shikun & Binui Ltd.		133,705		258,419
Shimizu Corp.		16,000		146,998
SHO-BOND Holdings Co., Ltd.(a)		600		26,469
Skanska AB, Class B		8,582		188,918
SNC-Lavalin Group, Inc.		833		31,395
Sumitomo Mitsui Construction Co., Ltd.		479,700		430,405
Sweco AB, Class B		2,085		32,331
Taikisha Ltd.		2,400		56,705
Taisei Corp.		26,000		181,765
Takamatsu Construction Group Co., Ltd.		2,600		56,862
Toa Corp.		110,000		249,825
Toda Corp.		9,000		43,320
Toenec Corp.		1,000		6,589
Tokyu Construction Co., Ltd.		6,200		52,326
Toshiba Plant Systems & Services Corp.(a)		20,300		256,133
Totetsu Kogyo Co., Ltd.		1,200		35,553
Toyo Engineering Corp.		101,000		284,135
United Engineers Ltd.*		348,300		606,393
Veidekke ASA		7,088		97,267
Vinci S.A.(a)		11,186		835,847
WSP Global, Inc.(a)		2,172		73,192
YIT Oyj(a)		71,903		490,830
Yokogawa Bridge Holdings Corp.		23,000		213,459
Yurtec Corp.		7,000		51,685
				18,676,144
Construction Materials – 0.6%
Adelaide Brighton Ltd.		8,560		33,773
Boral Ltd.		34,073		167,458
Brickworks Ltd.		2,458		28,719
Buzzi Unicem SpA		811		15,364
Buzzi Unicem SpA (Retirement Savings Plan)		5,135		58,167
Cementir Holding SpA		34,191		180,296
CRH PLC		19,417		564,210


	Shares		Value
Construction Materials – (continued)
CSR Ltd.		326,400	$	851,895
Fletcher Building Ltd.		18,332		106,908
HeidelbergCement AG		4,565		405,681
Imerys S.A.		632		46,660
Italcementi SpA		5,732		68,015
James Hardie Industries PLC (CDI)(a)		8,709		123,155
LafargeHolcim Ltd. (Registered)*		8,052		408,018
RHI AG(a)		16,997		365,600
Sumitomo Osaka Cement Co., Ltd.		11,000		48,320
Taiheiyo Cement Corp.		37,000		100,977
Titan Cement Co. S.A.		1,053		24,000
Vicat S.A.		290		20,195
Wienerberger AG		3,084		60,949
				3,678,360
Consumer Finance – 0.5%
Acom Co., Ltd.* (a)		3,300		17,950
AEON Financial Service Co., Ltd.		1,700		39,340
Aiful Corp.*		10,300		37,063
Cembra Money Bank AG* (a)		15,861		1,088,013
Credit Saison Co., Ltd.		5,600		106,667
FlexiGroup Ltd.		163,030		297,355
Hitachi Capital Corp.		600		13,436
Hong Leong Finance Ltd.		141,700		253,026
International Personal Finance PLC(a)		143,616		562,985
J Trust Co., Ltd.		6,600		51,137
Jaccs Co., Ltd.		82,000		333,380
Orient Corp.*		8,000		16,674
Provident Financial PLC		4,293		183,256
Sun Hung Kai & Co., Ltd.		431,996		253,388
				3,253,670
Containers & Packaging – 0.5%
Amcor Ltd.		26,511		311,571
BillerudKorsnas AB		7,496		116,517
CCL Industries, Inc., Class B		780		143,067
DS Smith PLC		40,430		225,828
FP Corp.		600		27,113
Huajun Holdings Ltd.		1,760,000		174,702

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			77

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Containers & Packaging – (continued)
Huhtamaki Oyj(a)		3,637	$	142,881
Intertape Polymer Group, Inc.		30,440		479,468
Pact Group Holdings Ltd.		11,241		44,437
Rengo Co., Ltd.(a)		148,000		827,179
Rexam PLC		21,461		196,489
RPC Group PLC		12,711		135,835
Smurfit Kappa Group PLC		9,983		264,698
Toyo Seikan Group Holdings Ltd.		5,500		112,832
Winpak Ltd.		1,210		41,818
				3,244,435
Distributors – 0.2%
Canon Marketing Japan, Inc.(a)		3,700		68,263
D’ieteren S.A./N.V.		14,116		625,127
Doshisha Co., Ltd.		1,800		34,774
Inchcape PLC		17,272		171,419
Jardine Cycle & Carriage Ltd.(a)		7,722		221,884
PALTAC CORPORATION		17,300		317,235
Uni-Select, Inc.		1,488		76,277
				1,514,979
Diversified Consumer Services – 0.2%
AA PLC		12,498		51,007
Benesse Holdings, Inc.		1,300		37,726
The Cross-Harbour Holdings Ltd.		110,000		149,178
Dignity PLC		2,306		82,425
EnerCare, Inc.		1,424		18,076
G8 Education Ltd.		225,090		675,085
InvoCare Ltd.		1,960		18,338
Navitas Ltd.		20,498		80,092
Nirvana Asia Ltd.(b)		113,000		31,902
Slater & Gordon Ltd.(a)		197,290		44,416
				1,188,245
Diversified Financial Services – 1.1%
Ackermans & van Haaren N.V.(a)		607		79,047
Banca IFIS SpA		1,617		46,264
Banca Mediolanum SpA		2,092		17,216
Banque Nationale de Belgique		138		474,175


	Shares		Value
Diversified Financial Services – (continued)
Bolsas y Mercados Espanoles SHMSF S.A.		941	$	31,848
Century Tokyo Leasing Corp.(a)		600		21,169
Challenger Ltd.		26,776		183,090
China Innovative Finance Group Ltd.* ^		288,000		35,270
Corp. Financiera Alba S.A.		1,679		68,883
Deutsche Boerse AG		4,127		338,869
Element Financial Corp.		12,437		139,800
Eurazeo S.A.		832		58,605
Euronext N.V.(b)		882		37,276
EXOR SpA		2,864		107,593
FFP		982		75,886
Fimalac		68		7,638
Financial Products Group Co., Ltd.		4,000		49,909
First Pacific Co., Ltd.		34,000		21,564
Fuyo General Lease Co., Ltd.		700		30,487
Goldin Financial Holdings Ltd.*		60,000		53,447
GRENKELEASING AG		331		65,283
Groupe Bruxelles Lambert S.A.		894		78,977
HAL Trust		1,816		393,070
Hong Kong Exchanges and Clearing Ltd.(a)		30,589		774,071
IBJ Leasing Co., Ltd.		24,238		431,774
IG Group Holdings PLC		11,738		132,917
Industrivarden AB, Class A		7,437		146,192
Industrivarden AB, Class C		7,664		139,668
Investment AB Kinnevik, Class B		2,207		63,549
Investment AB Latour, Class B		1,793		76,727
Investor AB, Class A(a)		1,980		71,673
Investor AB, Class B		11,130		408,854
Japan Exchange Group, Inc.		14,000		219,300
Japan Securities Finance Co., Ltd.		5,400		21,752
KBC Ancora(a)		1,377		48,623
L E Lundbergforetagen AB, Class B		678		36,856
London Stock Exchange Group PLC		5,922		235,357
Mitsubishi UFJ Lease & Finance Co., Ltd.		11,000		49,965
Onex Corp.		2,438		151,485

See Accompanying Notes to the Financial Statements.


78		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Diversified Financial Services – (continued)
ORIX Corp.		45,700	$	677,630
Pacific Century Regional Developments Ltd.*		49,000		13,307
Pargesa Holding S.A.		2,881		200,332
Ricoh Leasing Co., Ltd.		7,100		210,687
Singapore Exchange Ltd.		11,200		62,748
SNS REAAL N.V.* ^		2,857		—
Sofina S.A.		46		5,861
TMX Group Ltd.		425		17,626
Wendel S.A.		404		46,689
Wuestenrot & Wuerttembergische AG		11,881		238,274
Zenkoku Hosho Co., Ltd.(a)		1,600		58,919
				6,956,202
Diversified Telecommunication Services – 1.9%
B Communications Ltd.		1,000		27,917
BCE, Inc.		4,731		222,235
Bezeq The Israeli Telecommunication Corp. Ltd.		43,777		93,477
BT Group PLC		192,778		1,251,599
Cable & Wireless Communications PLC		83,937		90,498
Cellnex Telecom SAU(b)		2,254		37,201
Chorus Ltd.(a)		236,873		662,534
Com Hem Holding AB		5,606		49,754
Deutsche Telekom AG (Registered)		73,168		1,280,928
Elisa Oyj		4,873		182,006
Hellenic Telecommunications Organization S.A.		7,160		69,460
HKBN Ltd.		49,000		60,388
HKT Trust & HKT Ltd.		87,400		126,641
Hutchison Telecommunications Hong Kong Holdings Ltd.(a)		178,000		62,414
Iliad S.A.		617		134,870
Inmarsat PLC(a)		13,696		186,488
Koninklijke KPN N.V.		83,778		329,606
Manitoba Telecom Services, Inc.		700		18,352
Nippon Telegraph & Telephone Corp.		25,000		1,136,502
Orange S.A.		89,819		1,489,618


	Shares		Value
Diversified Telecommunication Services – (continued)
PCCW Ltd.		58,035	$	39,352
Proximus SADP(a)		3,522		118,496
Singapore Telecommunications Ltd.		155,000		445,147
Spark New Zealand Ltd.		32,757		84,979
Swisscom AG (Registered)(a)		553		280,683
TalkTalk Telecom Group PLC(a)		13,991		54,805
TDC A/S*		24,150		123,606
Telecom Italia SpA*		208,561		203,044
Telecom Italia SpA (Retirement Savings Plan)		180,895		141,924
Telefonica Deutschland Holding AG		15,896		80,728
Telefonica S.A.		85,124		928,364
Telenor ASA		11,828		203,588
Telia Co. AB		108,381		518,097
Telstra Corp. Ltd.		78,982		323,075
TELUS Corp.		1,641		52,115
TPG Telecom Ltd.		7,176		58,652
Vivendi S.A.(a)		23,131		444,024
Vocus Communications Ltd.		20,743		136,613
				11,749,780
Electric Utilities – 1.3%
Acciona S.A.		1,068		85,553
Alpiq Holding AG (Registered)*		506		33,786
AusNet Services		32,218		37,741
BKW AG		6,844		297,752
Cheung Kong Infrastructure Holdings Ltd.		18,000		170,203
Chubu Electric Power Co., Inc.		25,300		342,985
The Chugoku Electric Power Co., Inc.		11,206		149,351
CLP Holdings Ltd.		44,000		406,977
Contact Energy Ltd.		4,950		17,583
EDP – Energias de Portugal S.A.		92,511		328,892
Electricite de France S.A.(a)		10,036		144,201
Elia System Operator S.A./N.V.		468		24,204
Emera, Inc.		2,000		72,601
Endesa S.A.		6,290		132,090
Enel SpA		254,597		1,154,163
Energiedienst Holding AG (Registered)		3,773		89,355

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			79

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Electric Utilities – (continued)
Fortis, Inc.(a)		7,327	$	232,807
Fortum Oyj(a)		4,204		63,366
HK Electric Investments & HK Electric Investments Ltd.(b)		61,500		55,338
Hokkaido Electric Power Co., Inc.		5,800		54,317
Hokuriku Electric Power Co.		2,700		36,237
Iberdrola S.A.		136,418		969,352
Infratil Ltd.		24,925		56,469
The Kansai Electric Power Co., Inc.*		28,400		259,381
Kyushu Electric Power Co., Inc.		15,700		163,170
Mighty River Power Ltd.		31,509		66,539
The Okinawa Electric Power Co., Inc.		14,250		370,251
Power Assets Holdings Ltd.		44,000		419,456
Public Power Corp. S.A.		1,519		5,098
Red Electrica Corp. S.A.		2,752		245,762
Romande Energie Holding S.A. (Registered)		107		118,889
Shikoku Electric Power Co., Inc.		5,000		63,508
Spark Infrastructure Group		9,768		15,431
SSE PLC		37,513		829,787
Terna Rete Elettrica Nazionale SpA		30,911		174,329
Tohoku Electric Power Co., Inc.		15,600		205,288
Tokyo Electric Power Co. Holdings, Inc.*		36,115		199,148
TrustPower Ltd.		2,903		15,732
Verbund AG(a)		973		13,596
				8,120,688
Electrical Equipment – 1.0%
ABB Ltd. (Registered)*		34,458		729,064
Areva S.A.* (a)		5,877		30,290
Daihen Corp.(a)		71,000		368,288
Enerchina Holdings Ltd.*		2,606,823		107,537
Fuji Electric Co., Ltd.		24,000		106,547
Fujikura Ltd.		4,000		20,300
Furukawa Electric Co., Ltd.		14,000		35,198
Futaba Corp.		3,400		53,481
Gamesa Corp. Tecnologica S.A.		7,234		142,469


	Shares		Value
Electrical Equipment – (continued)
GS Yuasa Corp.		21,000	$	89,107
Johnson Electric Holdings Ltd.		10,500		31,065
Legrand S.A.		6,127		349,053
Mabuchi Motor Co., Ltd.		2,000		105,052
Mitsubishi Electric Corp.		79,000		884,546
Nidec Corp.		5,955		455,551
Nissin Electric Co., Ltd.		27,900		335,859
Nitto Kogyo Corp.		18,600		307,523
OSRAM Licht AG		1,816		94,794
Prysmian SpA(a)		4,794		113,056
Saft Groupe S.A.		16,445		511,189
Sanyo Denki Co., Ltd.		27,786		141,793
Schneider Electric SE*		11,440		744,763
Somfy S.A.		231		84,400
TKH Group N.V. (CVA)		1,421		56,150
Ushio, Inc.		400		5,656
Vestas Wind Systems A/S		5,790		414,316
				6,317,047
Electronic Equipment, Instruments & Components – 1.3%
Ai Holdings Corp.(a)		2,900		85,784
Alps Electric Co., Ltd.		6,000		111,594
Amano Corp.		2,600		43,886
Anritsu Corp.		11,700		71,844
Avigilon Corp.*		1,976		25,430
Axis Communications AB		902		38,115
Azbil Corp.		300		7,938
Barco N.V.		1,067		74,535
Canon Electronics, Inc.		9,500		142,151
Celestica, Inc.*		73,168		785,654
Citizen Holdings Co., Ltd.(a)		8,700		50,739
CONEXIO Corp.		7,600		88,221
Dexerials Corp.		27,500		230,805
Electrocomponents PLC		14,406		54,489
Elematec Corp.		6,100		106,612
Enplas Corp.		7,900		230,366
Evertz Technologies Ltd.		300		4,067
FIH Mobile Ltd.		23,000		9,873
Fingerprint Cards AB, Class B* (a)		1,176		70,509
Halma PLC(a)		14,869		194,292
Hamamatsu Photonics KK		3,400		98,033
Hexagon AB, Class B		6,460		257,838
Hirose Electric Co., Ltd.		945		119,323

See Accompanying Notes to the Financial Statements.


80		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Electronic Equipment, Instruments & Components – (continued)
Hitachi High-Technologies Corp.		1,000	$	28,226
Hitachi Ltd.		167,000		804,759
Horiba Ltd.		300		11,748
Ibiden Co., Ltd.		5,100		66,446
Ingenico Group S.A.(a)		1,545		182,265
Iriso Electronics Co., Ltd.		600		29,945
Japan Aviation Electronics Industry Ltd.		2,044		28,675
Japan Display, Inc.*		12,700		25,639
Keyence Corp.		900		564,924
Kyocera Corp.		9,200		470,598
Laird PLC(a)		11,144		56,876
Macnica Fuji Electronics Holdings, Inc.		22,000		252,292
Mitsumi Electric Co., Ltd.*		4,900		24,822
Murata Manufacturing Co., Ltd.		4,200		580,765
Nichicon Corp.		5,100		35,559
Nippon Electric Glass Co., Ltd.		6,000		32,805
Nippon Signal Company Ltd.		37,500		323,847
Nohmi Bosai Ltd.		2,000		28,936
Oki Electric Industry Co., Ltd.		28,000		40,563
Omron Corp.		5,800		192,981
Renishaw PLC(a)		1,617		44,911
Ryosan Co., Ltd.		1,400		34,871
Shimadzu Corp.		7,000		110,828
Siix Corp.		1,014		31,037
Spectris PLC		446		11,897
Taiyo Yuden Co., Ltd.		2,500		26,403
TDK Corp.		3,100		190,644
Topcon Corp.		1,400		17,900
Truly International Holdings Ltd.(a)		790,000		309,596
Venture Corp. Ltd.		16,000		99,639
VST Holdings Ltd.		291,028		66,781
Yaskawa Electric Corp.(a)		5,500		67,391
Yokogawa Electric Corp.		8,000		90,172
				7,786,839
Energy Equipment & Services – 1.1%
Amec Forster Wheeler PLC		9,395		67,974
Bourbon S.A.(a)		19,949		294,290


	Shares		Value
Energy Equipment & Services – (continued)
Canadian Energy Services & Technology Corp.		13,327	$	40,749
Enerflex Ltd.		50,261		483,109
Ensign Energy Services, Inc.		5,392		32,715
Ezion Holdings Ltd.* (a)		805,580		329,652
Fugro N.V. (CVA)*		2,335		47,524
Hunting PLC(a)		88,442		474,833
John Wood Group PLC		11,141		101,921
Modec, Inc.		11,000		172,204
Mullen Group Ltd.		7,844		91,490
Ocean Yield ASA		22,165		150,017
Pason Systems, Inc.		3,018		43,947
Petrofac Ltd.		6,676		82,638
Petroleum Geo-Services ASA(a)		135,488		479,370
Precision Drilling Corp.(a)		180,281		936,955
Prosafe SE		122,241		73,931
Saipem SpA*		168,705		80,769
SBM Offshore N.V.		7,324		98,104
Schoeller-Bleckmann Oilfield Equipment AG(a)		202		13,625
Seadrill Ltd.*		10,883		52,021
Secure Energy Services, Inc.		4,100		29,557
ShawCor Ltd.		2,274		61,543
Subsea 7 S.A.* (a)		11,753		108,154
Technip S.A.* (a)		3,784		221,511
Tecnicas Reunidas S.A.(a)		1,516		50,927
Tenaris S.A.		2,255		30,425
TGS Nopec Geophysical Co. ASA(a)		2,456		41,084
Transocean Ltd.		9,100		100,828
Vallourec S.A.(a)		203,122		1,055,049
WorleyParsons Ltd.(a)		144,066		768,508
				6,615,424
Food & Staples Retailing – 1.6%
Aeon Co., Ltd.		17,913		275,153
Ain Holdings, Inc.		1,400		69,872
Alimentation Couche-Tard, Inc., Class B		11,057		485,498
Arcs Co., Ltd.		2,918		70,253
Axfood AB(a)		352		6,525
Booker Group PLC		21,140		50,168
Carrefour S.A.		11,145		315,868

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			81

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Food & Staples Retailing – (continued)
Casino Guichard Perrachon S.A.(a)		1,519	$	90,399
Cocokara fine, Inc.		700		32,352
Colruyt S.A.		509		29,312
Cosmos Pharmaceutical Corp.(a)		100		17,291
Create SD Holdings Co., Ltd.		2,000		49,628
Dairy Farm International Holdings Ltd.		4,500		31,050
Delhaize Group		3,376		353,919
Distribuidora Internacional de Alimentacion S.A.* (a)		28,494		158,152
Empire Co., Ltd., Class A		7,537		125,456
FamilyMart Co., Ltd.(a)		1,800		97,406
George Weston Ltd.		2,368		205,834
Greggs PLC		5,530		83,682
Heiwado Co., Ltd.		1,200		25,392
ICA Gruppen AB		1,371		45,065
Inageya Co., Ltd.		6,098		81,443
J Sainsbury PLC		47,196		199,738
The Jean Coutu Group PJC, Inc., Class A		254		3,869
Jeronimo Martins SGPS S.A.		4,674		76,500
Kato Sangyo Co., Ltd.		17,300		437,856
Kesko Oyj, Class A		1,178		47,128
Kesko Oyj, Class B		802		32,049
Koninklijke Ahold N.V.		19,582		426,137
Kusuri No Aoki Co., Ltd.		1,600		87,481
Lawson, Inc.		1,100		87,387
Life Corp.		1,900		52,155
Loblaw Cos. Ltd.		6,006		331,946
MARR SpA		2,713		55,217
Matsumotokiyoshi Holdings Co., Ltd.		500		25,468
Metcash Ltd.*		540,714		726,257
METRO AG(a)		2,961		94,111
Metro, Inc.		6,331		212,230
Nihon Chouzai Co., Ltd.		5,500		187,883
The North West Co., Inc.		895		19,928
Rallye S.A.(a)		15,209		292,650
Rami Levy Chain Stores Hashikma Marketing 2006 Ltd.		375		15,382


	Shares		Value
Food & Staples Retailing – (continued)
Seven & i Holdings Co., Ltd.		16,800	$	713,327
Shufersal Ltd.		3,578		12,165
Sligro Food Group N.V.(a)		1,953		77,910
Sonae SGPS S.A.		18,183		20,201
Sugi Holdings Co., Ltd.		1,300		64,639
Sundrug Co., Ltd.		1,100		81,013
Tesco PLC* (a)		162,219		408,969
Tsuruha Holdings, Inc.		1,200		118,435
UNY Group Holdings Co., Ltd.		3,900		29,160
Valor Holdings Co., Ltd.		29,800		739,743
Welcia Holdings Co., Ltd.		900		48,956
Wesfarmers Ltd.		20,005		652,962
Wm Morrison Supermarkets PLC		106,978		299,477
Woolworths Ltd.(a)		28,889		487,451
Yaoko Co., Ltd.		1,800		82,266
				9,947,764
Food Products – 2.5%
AAK AB		442		33,415
Ajinomoto Co., Inc.		14,600		348,643
Ariake Japan Co., Ltd.		800		45,610
Aryzta AG* (a)		3,630		141,072
Associated British Foods PLC		9,527		427,615
Austevoll Seafood ASA		9,074		76,346
Australian Agricultural Co., Ltd.*		12,274		13,442
Bakkafrost P/F		1,950		68,993
Barry Callebaut AG (Registered)* (a)		38		44,680
Bell AG (Registered)		1,000		396,453
Bumitama Agri Ltd.(a)		194,800		110,875
C.P. Pokphand Co., Ltd.		317,384		33,959
Calbee, Inc.		3,200		129,352
Chocoladefabriken Lindt & Spruengli AG		18		110,235
Chocoladefabriken Lindt & Spruengli AG (Registered)		4		292,916
Cloetta AB, Class B		21,532		72,467
Cranswick PLC		1,078		35,405
Dairy Crest Group PLC(a)		8,688		71,908
Danone S.A.		12,653		886,483
Dydo Drinco, Inc.		100		5,094
Ebro Foods S.A.		88		1,995
Emmi AG (Registered)*		41		24,596

See Accompanying Notes to the Financial Statements.


82		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Food Products – (continued)
Ezaki Glico Co., Ltd.		800	$	41,796
First Resources Ltd.		18,000		25,512
Fuji Oil Holdings, Inc.		36,400		695,034
Fujicco Co., Ltd.		2,000		43,871
Glanbia PLC		2,208		41,626
Golden Agri-Resources Ltd.		333,000		99,103
Greencore Group PLC		19,256		101,775
Hokuto Corp.		3,200		63,644
House Foods Group, Inc.		2,400		47,284
Indofood Agri Resources Ltd.		248,000		98,717
Itoham Yonekyu Holdings, Inc.*		6,500		49,147
J-Oil Mills, Inc.		49,000		160,288
Kagome Co., Ltd.		500		10,907
Kameda Seika Co., Ltd.		200		8,178
Kerry Group PLC, Class A		3,101		276,573
Kewpie Corp.		1,000		27,020
Kikkoman Corp.		4,000		132,156
KWS Saat SE		116		40,217
Leroy Seafood Group ASA		1,715		83,702
Maple Leaf Foods, Inc.		300		6,222
Marine Harvest ASA*		12,739		198,227
Maruha Nichiro Corp.		26,400		600,566
Megmilk Snow Brand Co., Ltd.		214		5,082
MEIJI Holdings Co., Ltd.		2,800		224,534
Mitsui Sugar Co., Ltd.		42,000		193,131
Morinaga & Co., Ltd.		3,000		14,776
Morinaga Milk Industry Co., Ltd.		6,000		32,245
Nestle S.A. (Registered)		68,619		5,118,684
NH Foods Ltd.(a)		4,000		90,883
Nichirei Corp.		7,000		62,807
Nippon Flour Mills Co., Ltd.		9,000		70,910
Nippon Suisan Kaisha Ltd.		160,600		912,611
The Nisshin Oillio Group Ltd.		7,000		30,226
Nisshin Seifun Group, Inc.		7,090		119,210
Nissin Foods Holdings Co., Ltd.		1,500		71,218
Origin Enterprises PLC		5,998		42,263
Orkla ASA		14,960		130,606
Petra Foods Ltd.		5,000		9,207
Prima Meat Packers Ltd.(a)		82,000		232,216
Raisio Oyj, Class V		10,844		53,407
Riken Vitamin Co., Ltd.		800		31,403


	Shares		Value
Food Products – (continued)
S Foods, Inc.(a)		10,000	$	242,628
Sakata Seed Corp.		2,800		72,463
Salmar ASA		2,788		69,247
Saputo, Inc.		4,249		133,820
Schouw & Co.		1,096		64,091
Showa Sangyo Co., Ltd.		13,000		58,564
Suedzucker AG		1,589		28,027
Super Group Ltd.		12,000		8,660
Tate & Lyle PLC		9,708		83,621
Toyo Suisan Kaisha Ltd.		2,800		102,061
Vilmorin & Cie S.A.		38		2,721
Viscofan S.A.		113		6,341
WH Group Ltd.* (b)		339,500		274,849
Wilmar International Ltd.(a)		115,800		319,644
Yakult Honsha Co., Ltd.(a)		2,700		139,044
Yamazaki Baking Co., Ltd.		3,000		73,237
				15,347,556
Gas Utilities – 0.5%
APA Group		33,028		220,546
Enagas S.A.		5,115		155,864
Gas Natural SDG S.A.		17,603		366,235
Hong Kong & China Gas Co., Ltd.(a)		143,696		268,231
Osaka Gas Co., Ltd.(a)		70,000		259,601
Rubis S.C.A.		616		48,089
Saibu Gas Co., Ltd.		33,000		82,658
Shizuoka Gas Co., Ltd.		35,200		245,754
Snam SpA		41,977		256,258
Superior Plus Corp.(a)		84,546		737,061
Toho Gas Co., Ltd.(a)		8,000		56,077
Tokyo Gas Co., Ltd.		73,000		330,972
				3,027,346
Health Care Equipment & Supplies – 0.8%
Ambu A/S, Class B		1,775		61,185
Ansell Ltd.		1,947		29,613
Asahi Intecc Co., Ltd.		2,800		138,960
BioMerieux		509		65,673
Carl Zeiss Meditec AG		2,388		77,909
Cochlear Ltd.		785		64,718
Coloplast A/S, Class B		2,719		203,936
CYBERDYNE, Inc.*		1,500		32,987

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			83

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Health Care Equipment & Supplies – (continued)
DiaSorin SpA		869	$	50,761
Draegerwerk AG & Co. KGaA		1,473		89,653
Draegerwerk AG & Co. KGaA (Preference)		5,531		366,983
Elekta AB, Class B(a)		5,796		42,409
Essilor International S.A.		4,420		572,310
Fisher & Paykel Healthcare Corp. Ltd.		7,536		48,216
Fukuda Denshi Co., Ltd.		6,363		348,495
Getinge AB, Class B		4,824		102,103
GN Store Nord A/S(a)		2,532		49,796
Hogy Medical Co., Ltd.		700		39,581
Hoya Corp.		7,900		314,612
Jeol Ltd.		6,000		27,814
LivaNova PLC*		400		21,092
Mani, Inc.		2,400		40,421
Nagaileben Co., Ltd.		500		10,538
Nakanishi, Inc.		1,700		56,007
Nihon Kohden Corp.		1,200		31,280
Nikkiso Co., Ltd.		3,000		23,945
Nipro Corp.		3,800		38,144
Olympus Corp.		6,600		268,022
Paramount Bed Holdings Co., Ltd.		800		30,730
Sartorius AG (Preference)		534		131,773
Sartorius Stedim Biotech		198		75,631
Smith & Nephew PLC		22,388		379,124
Sonova Holding AG (Registered)(a)		1,488		199,021
Straumann Holding AG (Registered)		189		65,563
Sysmex Corp.		3,900		255,152
Terumo Corp.		7,000		276,415
William Demant Holding A/S*		324		33,306
				4,663,878
Health Care Providers & Services – 0.6%
Alfresa Holdings Corp.		4,100		81,927
Amplifon SpA		3,837		35,311
As One Corp.		700		25,908
BML, Inc.		200		8,683
Chartwell Retirement Residences		2,222		24,533


	Shares		Value
Health Care Providers & Services – (continued)
EBOS Group Ltd.		4,625	$	51,615
Fresenius Medical Care AG & Co. KGaA		5,260		456,359
Fresenius SE & Co. KGaA		9,521		692,678
Healthscope Ltd.		49,343		102,425
Integrated Diagnostics Holdings PLC(b)		5,435		25,273
Japara Healthcare Ltd.		25,050		54,101
Korian S.A.		1,254		39,512
Lifco AB, Class B		896		23,231
Mediclinic International PLC		16,830		223,121
Medipal Holdings Corp.		5,700		93,708
Metlifecare Ltd.		2,748		10,050
Miraca Holdings, Inc.		1,200		52,769
Nichii Gakkan Co.		3,600		27,624
NMC Health PLC(a)		2,026		31,074
Orpea		1,116		92,044
Primary Health Care Ltd.		310,300		821,715
Raffles Medical Group Ltd.		7,187		25,132
Ramsay Health Care Ltd.		3,852		190,930
RHOEN-KLINIKUM AG		917		28,499
Ryman Healthcare Ltd.		3,931		24,546
Ship Healthcare Holdings, Inc.		3,300		84,293
Sonic Healthcare Ltd.		7,576		112,279
Spire Healthcare Group PLC(b)		4,710		22,603
Summerset Group Holdings Ltd.(a)		11,172		34,685
Suzuken Co., Ltd.		1,980		70,784
Toho Holdings Co., Ltd.		4,200		100,451
Town Health International Medical Group Ltd.		286,000		53,829
UDG Healthcare PLC		6,494		58,220
				3,779,912
Health Care Technology – 0.0%^†
CompuGroup Medical SE		624		24,514
M3, Inc.(a)		2,800		78,770
				103,284
Hotels, Restaurants & Leisure – 1.6%
Accor S.A.(a)		4,605		204,038
Accordia Golf Co., Ltd.		35,200		340,831
Ainsworth Game Technology Ltd.		3,266		5,807

See Accompanying Notes to the Financial Statements.


84		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Hotels, Restaurants & Leisure – (continued)
Amaya, Inc.* (a)		3,644	$	49,485
Ardent Leisure Group		21,789		36,083
Aristocrat Leisure Ltd.		7,483		57,107
Atom Corp.		4,200		25,986
Autogrill SpA*		6,590		55,816
Cafe de Coral Holdings Ltd.		6,000		18,138
Carnival PLC		5,666		281,955
Colowide Co., Ltd.		3,500		58,129
Compass Group PLC		37,156		663,500
Crown Resorts Ltd.(a)		10,577		95,328
Dalata Hotel Group PLC*		5,571		28,133
Domino’s Pizza Enterprises Ltd.		2,058		97,391
Domino’s Pizza Group PLC		5,007		67,370
Doutor Nichires Holdings Co., Ltd.		2,700		48,047
Enterprise Inns PLC* (a)		317,748		403,794
Euro Disney S.C.A. (Registered)*		126,756		184,379
Evolution Gaming Group AB(b)		705		25,309
Flight Centre Travel Group Ltd.(a)		659		19,770
Fuji Kyuko Co., Ltd.		5,000		68,228
Fujita Kanko, Inc.		2,000		9,010
Galaxy Entertainment Group Ltd.		66,000		222,915
Genting Singapore PLC		144,000		87,318
GL Ltd.		13,000		8,850
Great Canadian Gaming Corp.*		4,004		58,113
Greene King PLC		14,890		178,425
HIS Co., Ltd.(a)		800		20,375
The Hongkong & Shanghai Hotels Ltd.		26,157		31,191
Ichibanya Co., Ltd.		500		32,104
Imperial Hotel Ltd.		100		2,243
InterContinental Hotels Group PLC		5,954		238,024
The Intertain Group Ltd.*		39,216		350,020
J D Wetherspoon PLC		286		2,778
Kingston Financial Group Ltd.*		142,000		52,903
Kuoni Reisen Holding AG*		2,132		820,770
Kyoritsu Maintenance Co., Ltd.		900		71,162
Ladbrokes PLC		44,660		76,675


	Shares		Value
Hotels, Restaurants & Leisure – (continued)
Macau Legend Development Ltd.*		60,000	$	8,199
Mandarin Oriental International Ltd.		30,000		45,000
Marston’s PLC(a)		330,673		696,087
McDonald’s Holdings Co. Japan Ltd.		800		19,949
Melco International Development Ltd.		21,000		24,121
Merlin Entertainments PLC(b)		19,821		125,289
MGM China Holdings Ltd.(a)		35,600		50,023
Millennium & Copthorne Hotels PLC(a)		4,198		28,325
Mitchells & Butlers PLC		6,290		24,759
MOS Food Services, Inc.		2,100		56,801
NagaCorp Ltd.		786,000		562,355
Ohsho Food Service Corp.		1,504		48,566
OPAP S.A.		8,569		64,776
Oriental Land Co., Ltd.(a)		5,600		397,776
OUE Ltd.		21,000		26,093
Paddy Power PLC		1,880		252,039
Plenus Co., Ltd.		12,000		224,085
Rank Group PLC		1,756		6,199
Regal Hotels International Holdings Ltd.		260,000		125,355
Resorttrust, Inc.		600		12,915
Restaurant Brands International, Inc.		4,214		182,239
Restaurant Brands International, Inc.*		3,458		149,545
The Restaurant Group PLC		7,514		30,281
Rezidor Hotel Group AB		3,130		13,265
Royal Holdings Co., Ltd.		1,600		31,269
Saizeriya Co., Ltd.		1,300		23,498
Sands China Ltd.(a)		49,200		176,321
Shangri-La Asia Ltd.		32,000		39,148
SJM Holdings Ltd.(a)		64,672		43,519
SKYCITY Entertainment Group Ltd.(a)		18,055		61,736
Skylark Co., Ltd.		3,700		48,448
Sodexo S.A.		1,549		156,462
SSP Group PLC		18,173		76,590
St. Marc Holdings Co., Ltd.		1,400		38,757

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			85

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Hotels, Restaurants & Leisure – (continued)
The Star Entertainment Grp Ltd.		18,462	$	79,604
Tabcorp Holdings Ltd.		17,988		60,813
Tatts Group Ltd.		42,612		122,598
Thomas Cook Group PLC*		37,027		47,868
Tokyo Dome Corp.		13,000		56,619
Tokyotokeiba Co., Ltd.		9,000		18,506
Toridoll.corp		1,600		28,831
TUI AG		19,217		278,429
Unibet Group PLC (SDR)		784		8,854
Whitbread PLC		3,811		216,163
William Hill PLC		24,614		112,750
Wynn Macau Ltd.		44,400		63,533
Yoshinoya Holdings Co., Ltd.		4,900		63,199
Zensho Holdings Co., Ltd.		3,600		46,802
				10,171,859
Household Durables – 1.5%
Alpine Electronics, Inc.		25,600		328,509
Barratt Developments PLC		33,174		258,777
Bellway PLC		5,527		198,121
Berkeley Group Holdings PLC		4,634		203,311
Bovis Homes Group PLC		77,754		993,224
Breville Group Ltd.		3,137		19,703
Casio Computer Co., Ltd.(a)		4,500		88,953
Chofu Seisakusho Co., Ltd.		200		4,783
Clarion Co., Ltd.		13,000		40,703
Crest Nicholson Holdings PLC		143,727		1,096,943
De’ Longhi SpA		2,341		53,920
DFS Furniture PLC(a)		66,452		294,275
Dorel Industries, Inc., Class B		16,393		365,394
Electrolux AB		6,602		191,745
Fiskars Oyj Abp		2,910		56,527
Forbo Holding AG (Registered)*		80		97,486
Foster Electric Co., Ltd.		16,737		363,695
Fujitsu General Ltd.		4,000		71,592
Haseko Corp.		8,200		78,172
Husqvarna AB, Class B		6,333		50,522
Iida Group Holdings Co., Ltd.		6,100		119,212
JM AB(a)		3,328		96,325
Man Wah Holdings Ltd.		14,800		17,286
Nikon Corp.(a)		11,400		171,647
Nobia AB		5,736		65,458


	Shares		Value
Household Durables – (continued)
PanaHome Corp.		39,000	$	314,202
Panasonic Corp.		44,200		410,790
Persimmon PLC		10,552		307,143
Pioneer Corp.*		15,600		43,449
Redrow PLC		15,841		88,877
Rinnai Corp.		400		36,525
Sangetsu Co., Ltd.		2,256		41,748
SEB S.A.		648		72,638
Sekisui Chemical Co., Ltd.		15,100		195,745
Sekisui House Ltd.		19,900		359,240
Sharp Corp.* (a)		46,000		63,629
Sony Corp.		27,500		714,005
Starts Corp., Inc.		19,200		409,679
Sumitomo Forestry Co., Ltd.		2,500		30,001
Taylor Wimpey PLC		132,639		358,100
Techtronic Industries Co., Ltd.		44,500		167,222
Token Corp.		310		24,888
TomTom N.V.*		5,274		48,053
Zojirushi Corp.		1,700		26,327
				9,038,544
Household Products – 0.5%
Earth Chemical Co., Ltd.		600		25,599
Henkel AG & Co. KGaA		2,145		217,990
Henkel AG & Co. KGaA (Preference)		3,663		418,199
Lion Corp.		5,000		62,994
Pigeon Corp.(a)		2,400		65,700
PZ Cussons PLC		18,809		88,694
Reckitt Benckiser Group PLC		14,799		1,442,524
Svenska Cellulosa AB S.C.A., Class A(a)		3,160		100,010
Svenska Cellulosa AB S.C.A., Class B		10,860		342,351
Unicharm Corp.(a)		11,800		252,830
				3,016,891
Independent Power and Renewable Electricity Producers – 0.1%
Algonquin Power & Utilities Corp.		6,486		56,751
Capital Power Corp.		4,687		66,492
Drax Group PLC		7,311		34,229
EDP Renovaveis S.A.		10,577		82,499

See Accompanying Notes to the Financial Statements.


86		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Independent Power and Renewable Electricity Producers – (continued)
Electric Power Development Co., Ltd.		9,300	$	288,140
Innergex Renewable Energy, Inc.		592		6,546
Northland Power, Inc.		180		2,990
TransAlta Corp.		11,427		59,844
TransAlta Renewables, Inc.		4,100		40,522
				638,013
Industrial Conglomerates – 1.1%
Chevalier International Holdings Ltd.		110,000		173,568
CIR-Compagnie Industriali Riunite SpA*		40,226		50,219
CK Hutchison Holdings Ltd.		60,856		729,594
Daetwyler Holding AG		334		49,691
DCC PLC		2,602		230,987
Gallant Venture Ltd.*		142,000		22,187
Hopewell Holdings Ltd.		8,000		27,020
Indus Holding AG		11,220		571,348
Jardine Matheson Holdings Ltd.		10,200		564,060
Jardine Strategic Holdings Ltd.		6,400		185,280
Keihan Holdings Co., Ltd.		10,000		74,022
Keppel Corp. Ltd.(a)		44,100		177,181
Koninklijke Philips N.V.		20,205		555,403
Nisshinbo Holdings, Inc.		2,000		22,524
NWS Holdings Ltd.		33,071		50,392
Rheinmetall AG		1,234		96,561
Seibu Holdings, Inc.		6,700		146,280
Sembcorp Industries Ltd.(a)		20,600		44,294
Shun Tak Holdings Ltd.		1,262,000		421,361
Siemens AG (Registered)		16,951		1,769,079
Smiths Group PLC		11,497		186,609
TOKAI Holdings Corp.(a)		84,095		478,656
Toshiba Corp.* (a)		145,000		318,473
				6,944,789
Insurance – 5.0%
Admiral Group PLC		5,562		151,304
Aegon N.V.		41,717		239,476
Ageas		6,960		273,108


	Shares		Value
Insurance – (continued)
AIA Group Ltd.		266,600	$	1,604,989
Allianz SE (Registered)		17,251		2,929,188
AMP Ltd.		50,939		228,580
Assicurazioni Generali SpA		41,583		634,393
Aviva PLC		144,887		917,747
AXA S.A.(a)		74,143		1,869,507
Baloise Holding AG (Registered)		1,871		231,703
Beazley PLC		38,775		185,116
Clal Insurance Enterprises Holdings Ltd.*		13,310		164,498
CNP Assurances		9,529		162,237
Coface S.A.		55,463		447,785
The Dai-ichi Life Insurance Co., Ltd.		44,000		562,980
Delta Lloyd N.V.(a)		264,521		1,349,424
Direct Line Insurance Group PLC		53,043		281,206
esure Group PLC		9,084		35,716
Euler Hermes Group		329		31,276
Fairfax Financial Holdings Ltd.		508		272,737
Gjensidige Forsikring ASA		5,777		98,934
Great-West Lifeco, Inc.		8,582		252,952
Grupo Catalana Occidente S.A.		2,102		66,568
Hannover Rueck SE		1,982		226,055
Harel Insurance Investments & Financial Services Ltd.		69,708		277,525
Helvetia Holding AG (Registered)		245		131,894
Hiscox Ltd.		8,993		118,631
IDI Insurance Co., Ltd.		3,320		174,517
Industrial Alliance Insurance & Financial Services, Inc.		2,726		90,751
Insurance Australia Group Ltd.		79,173		348,628
Intact Financial Corp.		2,751		203,920
Jardine Lloyd Thompson Group PLC		258		3,277
JRP Group PLC(a)		264,936		533,644
Lancashire Holdings Ltd.(a)		116,560		938,264
Legal & General Group PLC		215,107		703,011
Manulife Financial Corp.		65,617		969,116
Mapfre S.A.		46,599		118,219
Medibank Pvt Ltd.		82,147		196,848
Menora Mivtachim Holdings Ltd.*		13,926		122,452

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			87

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Insurance – (continued)
Migdal Insurance & Financial Holding Ltd.		221,760	$	165,585
MS&AD Insurance Group Holdings, Inc.		20,000		554,886
Muenchener Rueckversicherungs-Gesellschaft AG (Registered)		5,061		938,762
nib holdings Ltd.(a)		22,426		78,042
NN Group N.V.		5,436		188,402
Novae Group PLC		33,275		391,419
Old Mutual PLC		170,450		463,179
Phoenix Group Holdings		10,676		134,498
The Phoenix Holdings Ltd.*		39,108		102,807
Poste Italiane SpA* (b)		9,359		71,498
Power Corp. of Canada		12,816		311,959
Power Financial Corp.		11,937		314,387
Prudential PLC		56,651		1,118,264
QBE Insurance Group Ltd.		21,084		179,406
RSA Insurance Group PLC		37,897		254,871
Sampo Oyj, Class A		10,838		473,319
SCOR SE(a)		5,776		196,713
Societa Cattolica di Assicurazioni Scarl		85,305		592,575
Sompo Japan Nipponkoa Holdings, Inc.		14,000		384,756
Sony Financial Holdings, Inc.		3,000		38,974
St. James’s Place PLC(a)		15,487		196,695
Standard Life PLC(a)		40,296		192,496
Steadfast Group Ltd.		68,751		98,639
Storebrand ASA*		4,565		19,326
Sun Life Financial, Inc.		21,397		731,113
Suncorp Group Ltd.		44,496		424,464
Swiss Life Holding AG (Registered)*		1,323		334,166
Swiss Re AG		13,422		1,191,666
T&D Holdings, Inc.		27,600		278,979
Talanx AG		2,161		71,716
Tokio Marine Holdings, Inc.		29,200		1,006,765
Topdanmark A/S*		378		10,005
Tryg A/S		364		6,873
Unipol Gruppo Finanziario SpA		21,702		92,963
UnipolSai SpA		50,490		117,855


	Shares		Value
Insurance – (continued)
UNIQA Insurance Group AG(a)		873	$	6,303
Vienna Insurance Group AG Wiener Versicherung Gruppe(a)		580		13,093
Zurich Insurance Group AG*		5,280		1,182,698
				31,078,293
Internet & Catalog Retail – 0.3%
AO World PLC* (a)		20,713		55,314
ASKUL Corp.		1,400		56,657
ASOS PLC*		1,589		83,821
Belluna Co., Ltd.		27,600		142,650
Home Retail Group PLC		490,959		1,226,965
N Brown Group PLC(a)		1,208		4,751
Ocado Group PLC* (a)		8,653		37,470
Rakuten, Inc.		22,500		256,659
Start Today Co., Ltd.		600		26,020
Trade Me Group Ltd.		106		338
Yoox Net-A-Porter Group SpA*		2,041		59,751
Zalando SE* (a) (b)		1,490		49,388
				1,999,784
Internet Software & Services – 0.2%
Auto Trader Group PLC(b)		9,408		51,682
carsales.com Ltd.		3,812		34,211
COOKPAD, Inc.		500		7,463
DeNa Co., Ltd.		4,000		69,685
Dip Corp.		1,400		34,688
F@N Communications, Inc.		2,200		15,832
Gree, Inc.		2,000		11,496
Gurunavi, Inc.		1,800		44,228
Infomart Corp.		4,900		45,110
Just Eat PLC*		12,483		70,128
Kakaku.com, Inc.(a)		4,900		91,272
Mixi, Inc.		1,200		42,394
Moneysupermarket.com Group PLC		19,830		91,185
NetEnt AB*		2,295		144,609
Opera Software ASA		2,978		24,335
Rightmove PLC		2,386		134,847
SMS Co., Ltd.		1,600		30,686
SUNeVision Holdings Ltd.		407,000		135,891
United Internet AG (Registered)		3,246		158,509

See Accompanying Notes to the Financial Statements.


88		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Internet Software & Services – (continued)
Yahoo Japan Corp.		36,700	$	170,131
Zoopla Property Group PLC(b)		13,398		57,801
				1,466,183
IT Services – 1.0%
Alten S.A.		686		42,428
Altran Technologies S.A.		8,166		121,167
Amadeus IT Holding S.A., Class A		9,694		441,234
Atea ASA		48,795		457,509
Atos SE		3,048		271,218
Bechtle AG		708		73,955
Capgemini S.A.		3,699		345,414
CGI Group, Inc., Class A*		7,042		322,248
Computacenter PLC		41,807		511,992
Computershare Ltd.		16,613		128,177
DH Corp.(a)		2,110		54,864
Digital Garage, Inc.		1,900		38,890
Engineering SpA		2,871		217,028
Formula Systems 1985 Ltd.		4,272		139,291
Fujitsu Ltd.		64,000		233,760
GMO Payment Gateway, Inc.		400		26,356
Indra Sistemas S.A.*		5,537		64,877
IRESS Ltd.		6,581		58,459
IT Holdings Corp.		2,300		56,471
Itochu Techno-Solutions Corp.(a)		1,200		24,225
NEC Networks & System Integration Corp.		15,500		246,853
NET One Systems Co., Ltd.		8,000		42,395
Nihon Unisys Ltd.		35,600		447,184
Nomura Research Institute Ltd.		1,650		59,989
NS Solutions Corp.		3,000		53,975
NTT Data Corp.		5,500		295,061
Obic Co., Ltd.(a)		2,100		114,033
Otsuka Corp.		900		44,750
Paysafe Group PLC*		15,586		87,035
SCSK Corp.		400		15,010
Sopra Steria Group		7,515		873,641
Tieto Oyj		1,934		50,792
TKC Corp.		1,800		50,806
Transcosmos, Inc.		2,100		57,134
Wirecard AG(a)		2,357		101,815


	Shares		Value
IT Services – (continued)
Worldpay Group PLC* (b)		12,397	$	48,470
				6,218,506
Leisure Products – 0.2%
Amer Sports Oyj		1,390		41,106
Bandai Namco Holdings, Inc.		6,700		146,530
BRP, Inc.*		764		12,168
Fields Corp.		8,800		134,638
Heiwa Corp.		1,250		26,929
Mizuno Corp.		4,000		19,478
Sankyo Co., Ltd.		900		35,076
Sega Sammy Holdings, Inc.		5,800		65,158
Shimano, Inc.		1,900		285,546
Tomy Co., Ltd.		3,700		26,731
Yamaha Corp.		4,600		137,577
Yonex Co., Ltd.		600		25,235
				956,172
Life Sciences Tools & Services – 0.1%
Eurofins Scientific SE		147		54,559
Genfit*		840		28,694
Gerresheimer AG		736		54,743
Lonza Group AG (Registered)*		1,987		330,856
MorphoSys AG*		284		14,215
QIAGEN N.V.*		5,500		123,530
Tecan Group AG (Registered)		294		40,856
				647,453
Machinery – 3.3%
Aalberts Industries N.V.		3,635		124,567
Aida Engineering Ltd.		32,100		304,814
Alfa Laval AB(a)		2,549		40,225
Alstom S.A.*		3,962		101,285
Amada Holdings Co., Ltd.		8,000		83,219
ANDRITZ AG		1,441		80,723
Asahi Diamond Industrial Co., Ltd.		2,500		25,889
Atlas Copco AB, Class A(a)		12,575		325,722
Atlas Copco AB, Class B(a)		9,185		220,625
ATS Automation Tooling Systems, Inc.*		5,484		50,830
Bodycote PLC(a)		115,556		1,008,897
Bucher Industries AG (Registered)		100		23,985

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			89

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Machinery – (continued)
Burckhardt Compression Holding AG		141	$	50,236
Cargotec Oyj, Class B		613		23,169
CKD Corp.		35,000		298,986
Construcciones y Auxiliar de Ferrocarriles S.A.		1,157		376,348
Daifuku Co., Ltd.		4,800		89,455
Danieli & C Officine Meccaniche SpA		7,603		166,760
Danieli & C Officine Meccaniche SpA (Retirement Savings Plan)		26,690		434,085
DMG Mori AG		1,007		48,257
DMG Mori Co., Ltd.		2,000		23,833
Duerr AG		190		15,216
Ebara Corp.		6,000		28,319
FANUC Corp.		4,200		647,890
Fincantieri SpA* (a)		335,687		138,412
Fuji Machine Manufacturing Co., Ltd.		8,800		94,419
Fujitec Co., Ltd.		3,000		30,843
Furukawa Co., Ltd.		18,000		27,085
GEA Group AG		5,007		232,201
Georg Fischer AG (Registered)		174		141,415
Glory Ltd.		2,000		67,854
Harmonic Drive Systems, Inc.(a)		1,500		34,992
Hino Motors Ltd.		11,100		112,250
Hitachi Construction Machinery Co., Ltd.		5,100		84,273
Hitachi Koki Co., Ltd.		600		4,211
Hitachi Zosen Corp.		96,600		507,399
Hoshizaki Electric Co., Ltd.		1,300		112,631
IHI Corp.(a)		55,000		125,940
IMI PLC(a)		2,363		32,366
Industria Macchine Automatiche SpA		1,057		61,621
Interpump Group SpA		5,865		84,439
The Japan Steel Works Ltd.		3,000		12,029
JTEKT Corp.		9,500		127,057
Jungheinrich AG (Preference)		784		73,929
Kawasaki Heavy Industries Ltd.		55,000		162,438
KION Group AG*		2,223		121,144


	Shares		Value
Machinery – (continued)
Kitz Corp.		52,400	$	217,935
Komatsu Ltd.		36,700		653,942
Komori Corp.		31,900		389,973
Kone Oyj, Class B(a)		8,417		384,074
Konecranes Oyj(a)		2,579		59,166
Krones AG		627		71,483
Kubota Corp.		25,687		398,407
KUKA AG		799		78,738
Kurita Water Industries Ltd.		3,400		83,955
Makino Milling Machine Co., Ltd.(a)		63,000		397,448
Makita Corp.		3,300		213,431
MAN SE		394		42,758
MAN SE (Preference)		183		19,673
Max Co., Ltd.		1,000		10,776
Meidensha Corp.		128,000		552,699
Melrose Industries PLC		2,206		12,063
METAWATER Co., Ltd.		7,700		218,777
Metso Oyj(a)		3,481		83,686
Minebea Co., Ltd.		14,000		120,249
Mitsubishi Heavy Industries Ltd.		146,119		542,851
Mitsui Engineering & Shipbuilding Co., Ltd.		7,000		11,318
Miura Co., Ltd.		3,300		63,567
Nabtesco Corp.		2,300		53,913
Nachi-Fujikoshi Corp.(a)		125,000		421,749
Namura Shipbuilding Co., Ltd.		41,239		320,677
New Flyer Industries, Inc.		21,010		620,102
NGK Insulators Ltd.		7,000		151,390
Nitta Corp.		900		22,821
NKT Holding A/S		14,308		815,329
Norma Group SE		1,617		83,175
NSK Ltd.		23,000		211,954
NTN Corp.		9,000		29,441
Obara Group, Inc.		1,400		52,862
OC Oerlikon Corp. AG (Registered)* (a)		13,123		126,780
Oiles Corp.		17,520		291,959
OKUMA Corp.		5,000		41,123
OSG Corp.		1,500		28,599
Palfinger AG		794		24,418
Pfeiffer Vacuum Technology AG		302		32,466
Rational AG* (a)		185		93,941

See Accompanying Notes to the Financial Statements.


90		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Machinery – (continued)
Rotork PLC(a)		10,820	$	29,640
Ryobi Ltd.		99,000		376,588
Sandvik AB(a)		16,458		169,043
Schindler Holding AG		1,102		200,855
Schindler Holding AG (Registered)		1,109		203,982
Sembcorp Marine Ltd.		29,000		36,033
Semperit AG Holding(a)		6,518		234,040
Shima Seiki Manufacturing Ltd.		900		15,301
Shinmaywa Industries Ltd.		47,000		336,483
SKF AB, Class A		1,368		25,135
SKF AB, Class B		10,377		191,308
SMC Corp.		1,400		357,802
Spirax-Sarco Engineering PLC		2,056		102,854
Star Micronics Co., Ltd.		22,300		266,987
Sulzer AG (Registered)(a)		242		22,104
Sumitomo Heavy Industries Ltd.		26,000		114,940
Tadano Ltd.		1,000		10,029
Takeuchi Manufacturing Co., Ltd.		200		3,170
Takuma Co., Ltd.		51,181		449,649
THK Co., Ltd.(a)		2,500		51,194
Toshiba Machine Co., Ltd.		73,245		226,591
Trelleborg AB, Class B		6,703		122,238
Tsubakimoto Chain Co.		9,000		61,573
Tsurumi Manufacturing Co., Ltd.		11,000		150,512
Union Tool Co.		500		14,089
Vesuvius PLC(a)		138,182		650,385
Volvo AB, Class A		1,011		11,878
Volvo AB, Class B		24,765		290,174
Wacker Neuson SE		16,610		281,179
Wartsila Oyj Abp		3,192		136,879
The Weir Group PLC(a)		6,714		118,024
Yangzijiang Shipbuilding Holdings Ltd.(a)		169,300		124,703
Zardoya Otis S.A.		6,887		73,122
				20,490,435
Marine – 0.4%
AP Moeller – Maersk A/S, Class A		112		152,532
AP Moeller – Maersk A/S, Class B		262		368,509


	Shares		Value
Marine – (continued)
D/S Norden A/S* (a)		12,142	$	212,821
Dfds A/S		1,669		66,649
Iino Kaiun Kaisha Ltd.		4,300		17,442
Irish Continental Group PLC		6,042		35,639
Kawasaki Kisen Kaisha Ltd.(a)		12,000		26,469
Kuehne + Nagel International AG (Registered)		1,488		214,545
Mitsui OSK Lines Ltd.(a)		37,000		81,957
Neptune Orient Lines Ltd.* (a)		11,000		10,517
Nippon Yusen KK		55,000		111,547
NS United Kaiun Kaisha Ltd.		65,000		91,733
Orient Overseas International Ltd.(a)		1,000		3,809
Pacific Basin Shipping Ltd.*		29,000		4,897
SITC International Holdings Co., Ltd.		761,000		412,030
Stolt-Nielsen Ltd.		7,393		97,780
Wilh Wilhelmsen ASA		50,435		268,699
Wilh Wilhelmsen Holding ASA, Class A(a)		12,844		240,855
Wilh Wilhelmsen Holding ASA, Class B		3,039		54,535
				2,472,965
Media – 2.0%
Aimia, Inc.		93,547		639,280
Altice N.V., Class A* (a)		9,632		146,174
Altice N.V., Class B*		1,683		25,724
Asatsu-DK, Inc.		2,500		64,068
Asian Pay Television Trust		794,400		354,630
Atresmedia Corp. de Medios de Comunicacion S.A.		3,386		44,095
Axel Springer SE(a)		507		28,315
Cineplex, Inc.		714		28,267
Cineworld Group PLC		8,261		62,686
Cogeco Communications, Inc.		738		36,835
Cogeco, Inc.		5,314		217,719
Corus Entertainment, Inc., Class B(a)		68,475		683,875
CTS Eventim AG & Co. KGaA		2,869		100,519
CyberAgent, Inc.(a)		1,100		53,460
Daiichikosho Co., Ltd.		300		12,842
Daily Mail & General Trust PLC, Class A		9,183		93,896

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			91

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Media – (continued)
Dentsu, Inc.(a)		7,600	$	402,748
Entertainment One Ltd.(a)		207,300		561,796
Euromoney Institutional Investor PLC(a)		3,489		49,219
Eutelsat Communications S.A.		4,683		145,490
Event Hospitality and Entertainment Ltd.		5,084		58,237
Fairfax Media Ltd.		127,429		77,312
Fuji Media Holdings, Inc.		1,200		13,974
GFK SE		9,200		358,265
Hakuhodo DY Holdings, Inc.		1,900		22,339
Havas S.A.		7,025		58,801
Informa PLC		19,087		183,002
IPSOS		20,405		607,642
ITV PLC		88,660		292,485
JCDecaux S.A.		496		21,914
Kadokawa Dwango		1,500		22,038
Kinepolis Group N.V.(a)		1,030		45,419
Lagardere S.C.A.		3,526		93,572
Mediaset Espana Comunicacion S.A.		4,545		59,032
Mediaset SpA		11,276		50,756
Metropole Television S.A.		2,968		56,311
Modern Times Group MTG AB, Class B		2,186		65,614
Next Co., Ltd.		2,900		33,853
Nine Entertainment Co. Holdings Ltd.		410,410		353,921
Nippon Television Holdings, Inc.		1,500		25,123
NOS SGPS S.A.		7,692		55,195
Numericable-SFR S.A.		2,128		69,670
Pearson PLC		13,820		162,972
ProSiebenSat.1 Media SE		5,191		264,694
Publicis Groupe S.A.		3,929		290,840
Quebecor, Inc., Class B		196		5,251
REA Group Ltd.		912		35,440
RELX N.V.(a)		20,350		341,577
RELX PLC		23,455		415,747
RTL Group S.A.		774		64,342
Sanoma Oyj(a)		51,932		254,576
Schibsted ASA, Class A		2,672		77,947
SES S.A. (FDR)		6,326		172,624


	Shares		Value
Media – (continued)
Seven West Media Ltd.		621,445	$	502,711
Shaw Communications, Inc., Class B(a)		4,655		86,292
Shochiku Co., Ltd.		3,000		30,506
Singapore Press Holdings Ltd.(a)		2,000		6,041
Sky Network Television Ltd.(a)		7,095		26,443
SKY Perfect JSAT Holdings, Inc.		6,800		37,179
Sky PLC		24,585		337,997
Societe Television Francaise 1		1,850		22,238
Southern Cross Media Group Ltd.		378,985		312,360
Tamedia AG (Registered)		1,612		260,174
Technicolor S.A. (Registered)		18,014		123,588
Television Broadcasts Ltd.		2,700		10,094
Thomson Reuters Corp.		7,592		312,990
Toei Co., Ltd.		4,000		31,815
Toho Co., Ltd.		4,100		107,678
Tokyo Broadcasting System Holdings, Inc.		3,400		48,587
TV Asahi Holdings Corp.		3,100		53,224
Tv Tokyo Holdings Corp.		4,900		86,739
UBM PLC		16,518		137,682
Usen Corp.*		41,500		146,226
Village Roadshow Ltd.		1,551		6,226
Wolters Kluwer N.V.(a)		8,085		307,761
WPP PLC		30,528		713,739
				12,170,413
Metals & Mining – 4.2%
Acacia Mining PLC(a)		95,510		492,212
Acerinox S.A.		1,128		13,326
Agnico Eagle Mines Ltd.(a)		4,611		218,329
Aichi Steel Corp.		73,000		319,987
Alamos Gold, Inc., Class A		13,050		94,286
Alumina Ltd.(a)		89,081		101,633
AMAG Austria Metall AG(b)		1,721		63,274
Anglo American PLC(a)		55,281		618,210
Antofagasta PLC(a)		11,371		80,488
APERAM S.A.*		1,892		74,382
ArcelorMittal(a)		64,284		363,132
Asahi Holdings, Inc.(a)		20,100		278,032
Aurubis AG		1,561		84,719
B2Gold Corp.*		51,547		114,814

See Accompanying Notes to the Financial Statements.


92		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Metals & Mining – (continued)
Barrick Gold Corp.		27,475	$	532,786
Bekaert S.A.		23,796		1,046,991
BHP Billiton Ltd.(a)		61,366		968,475
BHP Billiton PLC		39,775		543,684
BlueScope Steel Ltd.		29,930		147,782
Boliden AB		10,017		174,807
Centamin PLC		91,818		162,616
Centerra Gold, Inc.		11,578		64,148
China Gold International Resources Corp. Ltd.* (a)		13,261		26,890
Daido Steel Co., Ltd.		5,000		17,431
Detour Gold Corp.*		5,025		107,954
Dominion Diamond Corp.		55,786		641,766
Dowa Holdings Co., Ltd.		4,000		26,132
Eldorado Gold Corp.		15,211		64,239
Eramet* (a)		186		7,407
Evolution Mining Ltd.		17,534		26,227
Evraz PLC*		187,642		390,325
First Quantum Minerals Ltd.		24,295		207,340
Fortescue Metals Group Ltd.		52,772		137,331
Franco-Nevada Corp.		3,926		276,130
Fresnillo PLC		3,538		57,685
Glencore PLC* (a)		481,360		1,148,680
Goldcorp, Inc.		15,119		305,132
Granges AB		38,610		285,155
G-Resources Group Ltd.		653,398		14,993
Hitachi Metals Ltd.		6,040		64,354
HudBay Minerals, Inc.		4,453		22,254
IAMGOLD Corp.*		240,988		821,506
Iluka Resources Ltd.		15,021		73,709
Independence Group NL(a)		258,280		603,145
JFE Holdings, Inc.(a)		22,000		324,772
KAZ Minerals PLC* (a)		18,115		45,510
Kinross Gold Corp.*		42,649		243,446
Kobe Steel Ltd.		84,000		84,789
Kyoei Steel Ltd.		19,200		303,446
Labrador Iron Ore Royalty Corp.		579		6,795
Lundin Mining Corp.*		7,758		30,534
Maruichi Steel Tube Ltd.(a)		1,000		30,001
Mitsubishi Materials Corp.		39,000		128,670
Mitsui Mining & Smelting Co., Ltd.		360,000		699,846


	Shares		Value
Metals & Mining – (continued)
Mytilineos Holdings S.A.*		45,628	$	182,910
Nevsun Resources Ltd.		6,472		24,233
New Gold, Inc.*		18,208		85,763
Newcrest Mining Ltd.*		19,580		283,459
Nippon Light Metal Holdings Co., Ltd.		51,200		92,834
Nippon Steel & Sumitomo Metal Corp.		33,010		721,626
Nisshin Steel Co., Ltd.		60,500		844,778
Norsk Hydro ASA(a)		44,891		195,289
Northern Star Resources Ltd.		335,996		992,327
Novagold Resources, Inc.*		18,000		117,116
OceanaGold Corp.		17,500		62,729
OceanaGold Corp.*		1,000		3,585
Osaka Steel Co., Ltd.		6,600		111,465
OSAKA Titanium Technologies Co., Ltd.		1,000		14,094
Outokumpu Oyj*		8,221		34,481
OZ Minerals Ltd.		194,483		872,708
Pacific Metals Co., Ltd.*		110,000		360,858
Pan American Silver Corp.		10,751		168,827
Polymetal International PLC		6,154		63,916
Pretium Resources, Inc.*		8,692		71,682
Randgold Resources Ltd.		2,121		210,347
Rio Tinto Ltd.		14,322		563,433
Rio Tinto PLC		40,487		1,364,413
Salzgitter AG		25,177		852,262
Sandfire Resources NL		97,465		441,076
Sanyo Special Steel Co., Ltd.		82,000		385,495
SEMAFO, Inc.*		17,791		79,396
Silver Wheaton Corp.		10,293		216,033
Sims Metal Management Ltd.		11,213		81,122
South32 Ltd.*		298,595		378,269
SSAB AB, Class A*		14,585		61,340
SSAB AB, Class B* (a)		11,270		39,082
Sumitomo Metal Mining Co., Ltd.		15,000		175,522
Tahoe Resources, Inc.		4,254		60,180
Teck Resources Ltd., Class B(a)		22,056		270,462
thyssenkrupp AG		8,708		202,566
Toho Titanium Co., Ltd.		5,700		40,221
Tokyo Steel Manufacturing Co., Ltd.(a)		65,000		410,066
Topy Industries Ltd.		89,000		177,176

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			93

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Metals & Mining – (continued)
Torex Gold Resources, Inc.*		52,463	$	93,400
Turquoise Hill Resources Ltd.*		16,776		50,224
UACJ Corp.(a)		169,000		356,970
Vedanta Resources PLC		1,197		7,398
voestalpine AG		4,307		155,292
Yamana Gold, Inc.		30,492		151,413
Yamato Kogyo Co., Ltd.		200		4,834
Yodogawa Steel Works Ltd.		2,800		65,057
				25,979,436
Multiline Retail – 0.5%
Canadian Tire Corp. Ltd., Class A		1,432		156,244
Debenhams PLC		620,573		712,717
Dollarama, Inc.		2,997		216,437
Don Quijote Holdings Co., Ltd.		3,400		126,314
Fuji Co., Ltd.		800		18,251
H2O Retailing Corp.(a)		1,815		30,890
Harvey Norman Holdings Ltd.		5,640		19,283
Hudson’s Bay Co.(a)		4,000		53,265
Isetan Mitsukoshi Holdings Ltd.(a)		6,300		69,715
Izumi Co., Ltd.(a)		700		28,067
J Front Retailing Co., Ltd.		7,600		95,253
Kintetsu Department Store Co., Ltd.*		18,000		50,638
Lifestyle International Holdings Ltd.		4,000		6,631
Marks & Spencer Group PLC		29,865		185,278
Marui Group Co., Ltd.		5,500		87,027
Matsuya Co., Ltd.		1,500		12,253
Myer Holdings Ltd.(a)		487,635		385,164
Next PLC		3,136		233,601
Parco Co., Ltd.		20,500		177,420
Ryohin Keikaku Co., Ltd.		500		115,286
Sears Canada, Inc.*		5,515		21,574
Seria Co., Ltd.		1,200		70,994
Takashimaya Co., Ltd.		11,000		82,967
The Warehouse Group Ltd.		46,421		89,589
				3,044,858


	Shares		Value
Multi-Utilities – 1.0%
A2A SpA		25,745	$	36,741
ACEA SpA		3,890		57,208
AGL Energy Ltd.		28,601		399,213
Atco Ltd., Class I		1,916		62,684
Canadian Utilities Ltd., Class A		205		5,906
Centrica PLC		177,761		620,799
DUET Group		20,203		34,690
E.ON SE		69,590		718,062
Engie S.A.(a)		55,700		918,662
Hera SpA		8,603		25,875
Iren SpA		307,406		568,621
Just Energy Group, Inc.		55,297		352,725
National Grid PLC		93,303		1,332,352
REN – Redes Energeticas Nacionais SGPS S.A.(a)		59,112		177,452
RWE AG*		16,501		246,543
RWE AG (Non-Voting) (Preference)		1,032		11,294
Suez Environnement Co.(a)		8,856		163,306
Telecom Plus PLC(a)		4,632		63,172
Veolia Environnement S.A.(a)		11,993		294,710
				6,090,015
Oil, Gas & Consumable Fuels – 5.4%
Advantage Oil & Gas Ltd.*		18,147		104,165
Africa Oil Corp.*		39,060		68,291
AltaGas Ltd.(a)		4,269		103,947
ARC Resources Ltd.(a)		11,332		191,520
Baytex Energy Corp.		130,602		669,380
Beach Energy Ltd.		836,975		472,666
Birchcliff Energy Ltd.*		1,929		8,039
Bonterra Energy Corp.		454		9,808
BP PLC		654,074		3,581,097
Brightoil Petroleum Holdings Ltd.		160,147		50,993
BW LPG Ltd.(b)		37,290		224,138
Cairn Energy PLC*		15,802		51,829
Caltex Australia Ltd.		9,526		236,267
Cameco Corp.		11,825		148,214
Canadian Natural Resources Ltd.		22,410		674,125
Cenovus Energy, Inc.		26,822		425,906
Cosmo Energy Holdings Co., Ltd.(a)		44,200		579,584

See Accompanying Notes to the Financial Statements.


94		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Oil, Gas & Consumable Fuels – (continued)
Crescent Point Energy Corp.(a)		23,565	$	397,704
Delek Group Ltd.		19		3,381
Det Norske Oljeselskap ASA*		1,072		9,572
DNO ASA*		5,536		6,390
Enbridge Income Fund Holdings, Inc.		521		12,058
Enbridge, Inc.(a)		17,866		743,394
Encana Corp.		17,179		131,661
Enerplus Corp.		135,648		747,223
Eni SpA		46,939		763,414
ERG SpA		30,405		395,257
Euronav N.V.		7,264		79,870
Freehold Royalties Ltd.		6,773		67,698
Galp Energia SGPS S.A.		11,849		162,787
Gaztransport Et Technigaz S.A.(a)		78		2,895
Genel Energy PLC*		1,199		2,318
Gibson Energy, Inc.		1,301		19,371
Hellenic Petroleum S.A.*		2,655		11,768
Hoegh LNG Holdings Ltd.		387		4,518
Husky Energy, Inc.		1,881		23,741
Idemitsu Kosan Co., Ltd.(a)		4,100		90,281
Imperial Oil Ltd.		4,478		148,754
Inpex Corp.		28,500		236,588
Inter Pipeline Ltd.(a)		7,497		160,582
Itochu Enex Co., Ltd.		33,100		279,352
James Fisher & Sons PLC		4,278		88,676
Japan Petroleum Exploration Co., Ltd.		200		4,802
JX Holdings, Inc.		79,300		348,788
Kelt Exploration Ltd.*		5,800		22,411
Keyera Corp.(a)		4,730		152,594
Koninklijke Vopak N.V.		2,062		112,051
Liquefied Natural Gas Ltd.*		33,534		15,611
Lundin Petroleum AB*		2,324		43,569
MEG Energy Corp.*		3,480		18,475
Motor Oil Hellas Corinth Refineries S.A.		6,593		75,211
Naphtha Israel Petroleum Corp. Ltd.*		23,011		117,937
Neste Oyj(a)		3,459		110,692
New Hope Corp. Ltd.		2,558		2,811


	Shares		Value
Oil, Gas & Consumable Fuels – (continued)
The New Zealand Refining Co., Ltd.		87,175	$	182,262
NewOcean Energy Holdings Ltd.		664,000		226,834
Nippon Gas Co., Ltd.		2,000		48,133
Nostrum Oil & Gas PLC		4,768		21,041
NuVista Energy Ltd.*		8,513		40,370
OMV AG		6,305		189,274
Ophir Energy PLC*		44,047		48,619
Origin Energy Ltd.		59,293		248,419
Pacific Exploration and Production Corp.* ^ (a)		105,840		54,078
Paramount Resources Ltd., Class A* (a)		1,591		11,596
Parex Resources, Inc.*		7,102		71,269
Parkland Fuel Corp.		4,998		95,483
Paz Oil Co., Ltd.		140		21,841
Pembina Pipeline Corp.		10,179		306,280
Pengrowth Energy Corp.(a)		300,135		493,596
Penn West Petroleum Ltd.(a)		302,980		345,890
Peyto Exploration & Development Corp.		6,137		156,928
PrairieSky Royalty Ltd.(a)		4,099		86,457
Raging River Exploration, Inc.*		10,400		84,439
Repsol S.A.		51,530		675,483
Royal Dutch Shell PLC, Class A(a)		172,720		4,502,447
Royal Dutch Shell PLC, Class B		122,045		3,193,077
San-Ai Oil Co., Ltd.		33,800		243,245
Santos Ltd.		51,562		188,878
Saras SpA* (a)		211,458		368,134
Seven Generations Energy Ltd., Class A*		2,700		47,637
Showa Shell Sekiyu KK		10,200		109,441
Soco International PLC		8,244		17,843
Statoil ASA		33,885		598,811
Suncor Energy, Inc.		34,486		1,013,986
TonenGeneral Sekiyu KK		12,000		117,426
TORC Oil & Gas Ltd.(a)		58,483		394,991
TORM PLC*		13,728		174,286
Total Gabon		124		20,025
TOTAL S.A.		92,426		4,650,435
Tourmaline Oil Corp.*		3,649		84,306

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			95

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Oil, Gas & Consumable Fuels – (continued)
TransCanada Corp.		14,913	$	620,284
Tullow Oil PLC*		20,401		83,589
United Energy Group Ltd.*		204,000		10,914
Veresen, Inc.(a)		7,831		56,766
Vermilion Energy, Inc.		2,352		81,022
Washington H Soul Pattinson & Co., Ltd.		3,833		47,534
Whitecap Resources, Inc.		10,560		79,331
Whitehaven Coal Ltd.*		74,920		44,025
Woodside Petroleum Ltd.		12,661		273,828
				33,644,727
Paper & Forest Products – 0.4%
Altri SGPS S.A.		59,620		232,445
Canfor Corp.*		300		3,286
Canfor Pulp Products, Inc.		19,712		160,201
Daio Paper Corp.(a)		3,745		38,187
Ence Energia y Celulosa S.A.		60,665		175,096
Hokuetsu Kishu Paper Co., Ltd.		10,400		67,652
Holmen AB, Class B		194		6,694
Interfor Corp.* (a)		37,849		329,660
KuangChi Science Ltd.*		55,000		26,376
Metsa Board Oyj		6,595		41,431
Mondi PLC		9,355		179,250
The Navigator Co. S.A.		6,520		23,262
Nippon Paper Industries Co., Ltd.		4,700		92,511
Norbord, Inc.		731		14,595
Oji Holdings Corp.		30,000		127,015
Semapa-Sociedade de Investimento e Gestao		24,131		305,405
Stella-Jones, Inc.		1,983		75,942
Stora Enso Oyj, Class R(a)		19,858		173,312
UPM-Kymmene Oyj		19,856		379,338
West Fraser Timber Co., Ltd.		3,370		111,221
				2,562,879
Personal Products – 0.9%
Beiersdorf AG		1,485		133,278
Blackmores Ltd.		134		16,464
Ci:z Holdings Co., Ltd.		1,800		37,415
euglena Co., Ltd.* (a)		3,900		56,717
Fancl Corp.		2,500		34,137


	Shares		Value
Personal Products – (continued)
Kao Corp.		11,700	$	668,790
Kobayashi Pharmaceutical Co., Ltd.		300		24,730
Kose Corp.		200		19,179
L’Oreal S.A.(a)		5,289		959,851
Mandom Corp.		1,300		60,508
Noevir Holdings Co., Ltd.		1,900		55,138
Ontex Group N.V.		1,029		31,533
Oriflame Holding AG*		1,656		33,316
Pola Orbis Holdings, Inc.		900		73,938
Shiseido Co., Ltd.		11,000		255,479
Unilever N.V. (CVA)		37,187		1,634,047
Unilever PLC		26,565		1,188,661
				5,283,181
Pharmaceuticals – 4.8%
ALK-Abello A/S		344		55,901
Almirall S.A.		2,295		37,720
Astellas Pharma, Inc.		46,600		651,995
AstraZeneca PLC		27,098		1,559,253
Bayer AG (Registered)		17,463		2,015,126
BTG PLC*		7,934		68,805
Chugai Pharmaceutical Co., Ltd.		6,000		210,851
Concordia Healthcare Corp.		1,317		38,356
Cosmo Pharmaceuticals S.A.*		286		47,264
Daiichi Sankyo Co., Ltd.		13,700		333,041
Dechra Pharmaceuticals PLC(a)		5,318		86,161
Eisai Co., Ltd.		6,000		383,289
Galenica AG (Registered)(a)		118		172,599
GlaxoSmithKline PLC		98,952		2,114,890
GW Pharmaceuticals PLC*		6,644		44,357
H Lundbeck A/S*		500		16,704
Haw Par Corp. Ltd.		3,200		21,404
Hikma Pharmaceuticals PLC		2,711		87,528
Hisamitsu Pharmaceutical Co., Inc.		1,200		58,657
Hutchison China MediTech Ltd.*		1,807		44,471
Indivior PLC		365,408		860,740
Ipsen S.A.		1,295		78,389
JCR Pharmaceuticals Co., Ltd.		600		14,619
Kaken Pharmaceutical Co., Ltd.		900		51,058
Kissei Pharmaceutical Co., Ltd.		1,400		33,405
KYORIN Holdings, Inc.		1,000		20,412

See Accompanying Notes to the Financial Statements.


96		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Pharmaceuticals – (continued)
Kyowa Hakko Kirin Co., Ltd.		5,000	$	92,715
Meda AB, Class A		5,406		99,799
Merck KGaA*		3,355		315,366
Mitsubishi Tanabe Pharma Corp.		4,600		84,395
Mochida Pharmaceutical Co., Ltd.		500		38,133
Nichi-iko Pharmaceutical Co., Ltd.		1,000		24,693
Nippon Shinyaku Co., Ltd.(a)		2,000		93,369
Novartis AG (Registered)		57,154		4,364,813
Novo Nordisk A/S, Class B		41,250		2,303,622
Ono Pharmaceutical Co., Ltd.(a)		11,600		539,696
Orion Oyj, Class A		1,866		64,095
Orion Oyj, Class B		1,450		50,587
Otsuka Holdings Co., Ltd.		12,300		493,862
Recordati SpA		2,678		68,062
Roche Holding AG – BR		827		211,819
Roche Holding AG – Genusschein		14,630		3,701,382
Rohto Pharmaceutical Co., Ltd.		1,000		17,683
Sanofi(a)		24,700		2,040,002
Santen Pharmaceutical Co., Ltd.		11,100		165,574
Sawai Pharmaceutical Co., Ltd.		700		46,320
Seikagaku Corp.		1,800		28,499
Shionogi & Co., Ltd.		8,600		453,571
Shire PLC		13,183		822,875
Sosei Group Corp.*		700		147,007
Stada Arzneimittel AG(a)		35,617		1,511,415
Sumitomo Dainippon Pharma Co., Ltd.(a)		3,800		50,539
Taisho Pharmaceutical Holdings Co., Ltd.		1,400		117,763
Takeda Pharmaceutical Co., Ltd.		14,600		718,026
Teva Pharmaceutical Industries Ltd.		22,067		1,242,137
Torii Pharmaceutical Co., Ltd.		700		16,591
Towa Pharmaceutical Co., Ltd.		900		42,395
Tsumura & Co.		900		23,788
UCB S.A.(a)		2,861		214,142
The United Laboratories International Holdings Ltd.*		348,000		145,351


	Shares		Value
Pharmaceuticals – (continued)
Valeant Pharmaceuticals International, Inc.*		6,882	$	229,821
Virbac S.A.		281		51,270
ZERIA Pharmaceutical Co., Ltd.		3,100		39,983
				29,778,155
Professional Services – 0.6%
Adecco S.A. (Registered)		4,098		264,008
AF AB, Class B		2,228		38,187
ALS Ltd.		11,071		39,541
Applus Services S.A.		50,965		470,484
Bureau Veritas S.A.		6,828		161,883
Capita PLC		13,863		203,282
Experian PLC		21,285		390,067
Hays PLC		26,200		49,165
Intertek Group PLC		4,733		225,820
McMillan Shakespeare Ltd.		45,695		428,230
Meitec Corp.(a)		2,400		86,135
Morneau Shepell, Inc.		3,100		43,557
Nomura Co., Ltd.		3,000		52,040
Randstad Holding N.V.		2,829		151,981
Recruit Holdings Co., Ltd.		8,900		284,065
SAI Global Ltd.		14,970		41,699
SEEK Ltd.		7,421		92,709
SGS S.A. (Registered)(a)		103		226,847
Stantec, Inc.		2,156		55,354
TechnoPro Holdings, Inc.		900		25,824
Teleperformance		821		73,722
Temp Holdings Co., Ltd.(a)		5,700		88,967
USG People N.V.		3,346		66,721
WS Atkins PLC		3,296		64,313
Yumeshin Holdings Co., Ltd.(a)		7,500		44,161
				3,668,762
Real Estate Investment Trusts (REITs) – 2.7%
Abacus Property Group(a)		171,245		414,273
Activia Properties, Inc.		10		54,021
Advance Residence Investment Corp.		41		111,816
AEON REIT Investment Corp.		56		70,501
AIMS AMP Capital Industrial REIT		318,000		330,055
Allied Properties Real Estate Investment Trust		122		3,443

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			97

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Real Estate Investment Trusts (REITs) – (continued)
alstria office REIT-AG*		3,185	$	44,687
Altarea S.C.A.		1,126		233,429
Argosy Property Ltd.(a)		33,603		27,961
Artis Real Estate Investment Trust		43,080		460,859
Ascendas Real Estate Investment Trust		47,600		87,122
Ascott Residence Trust		21,600		18,240
Assura PLC(a)		63,847		52,984
Befimmo S.A.		1,029		68,769
Beni Stabili SpA SIIQ		50,234		37,225
Big Yellow Group PLC		5,819		68,705
Boardwalk Real Estate Investment Trust		307		13,161
The British Land Co. PLC		25,654		270,204
Brookfield Canada Office Properties		7,814		172,113
BWP Trust		20,265		54,128
Canadian Apartment Properties REIT		444		10,574
Canadian Real Estate Investment Trust		100		3,536
CapitaLand Commercial Trust Ltd.		58,000		61,709
CapitaLand Retail China Trust		37,540		41,198
CapitaMall Trust(a)		16,100		24,796
CDL Hospitality Trusts		4,000		4,152
Champion REIT(a)		51,000		27,350
Charter Hall Group		13,598		49,707
Charter Hall Retail REIT		4,042		14,683
Choice Properties Real Estate Investment Trust		26,840		278,342
Cofinimmo S.A.* (a)		715		88,853
Comforia Residential REIT, Inc.		33		75,287
Cominar Real Estate Investment Trust, Class U		1,600		22,073
Crombie Real Estate Investment Trust		1,400		15,625
Cromwell Property Group		774,321		602,742
Daiwa House REIT Investment Corp.		4		21,571
Daiwa House Residential Investment Corp.		34		83,955


	Shares		Value
Real Estate Investment Trusts (REITs) – (continued)
Daiwa Office Investment Corp.		5	$	32,431
Derwent London PLC		4,092		196,855
Dexus Property Group		31,245		200,772
Dream Global Real Estate Investment Trust		34,583		242,959
Dream Office Real Estate Investment Trust		507		8,476
Eurocommercial Properties N.V. (CVA)		2,107		98,509
Far East Hospitality Trust		537,300		265,842
Fonciere Des Regions*		2,035		192,616
Fortune Real Estate Investment Trust		21,000		23,065
Frasers Centrepoint Trust		47,000		68,189
Frasers Commercial Trust		51,764		49,875
Frontier Real Estate Investment Corp.		11		55,928
Fukuoka REIT Corp.		4		7,372
Gecina S.A.		1,189		171,998
Global One Real Estate Investment Corp.		12		50,358
GLP J-Reit		44		54,036
Goodman Group		35,753		187,993
Goodman Property Trust(a)		52,532		49,222
The GPT Group		54,231		208,174
Granite Real Estate Investment Trust		13,434		400,896
Great Portland Estates PLC		14,357		159,419
Green REIT PLC		385,187		636,173
Grivalia Properties REIC AE		4,120		35,391
H&R Real Estate Investment Trust		1,437		25,147
Hammerson PLC		16,940		145,046
Hankyu Reit, Inc.		25		31,917
Hansteen Holdings PLC		16,108		24,493
Heiwa Real Estate REIT, Inc.		47		39,579
Hibernia REIT PLC		384,971		568,354
Hoshino Resorts REIT, Inc.		2		24,562
Hulic Reit, Inc.		65		113,057
ICADE		687		54,096
Ichigo Office REIT Investment		38		29,620
Immobiliare Grande Distribuzione SIIQ SpA		161,590		146,766
Industrial & Infrastructure Fund Investment Corp.		6		30,562

See Accompanying Notes to the Financial Statements.


98		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Real Estate Investment Trusts (REITs) – (continued)
Intu Properties PLC		13,045	$	58,151
Investa Office Fund		40,539		129,009
Invincible Investment Corp.(a)		65		49,937
Japan Excellent, Inc.		66		94,502
Japan Hotel REIT Investment Corp.		138		126,398
Japan Logistics Fund, Inc.		15		33,520
Japan Prime Realty Investment Corp.		18		80,499
Japan Real Estate Investment Corp.		30		188,981
Japan Rental Housing Investments, Inc.		137		108,453
Japan Retail Fund Investment Corp.		52		129,326
Kenedix Office Investment Corp.		6		35,609
Kenedix Residential Investment Corp.		25		70,564
Keppel DC REIT		476,114		387,891
Keppel REIT		3,160		2,469
Kiwi Property Group Ltd.		3,046		3,152
Klepierre		5,031		236,685
Land Securities Group PLC		19,889		329,813
Link REIT		39,301		238,880
Lippo Malls Indonesia Retail Trust		1,119,100		270,606
LondonMetric Property PLC(a)		13,999		32,504
Mapletree Commercial Trust		4,000		4,464
Mapletree Industrial Trust		5,242		6,260
Mapletree Logistics Trust		5,067		4,072
MCUBS MidCity Investment Corp.		33		112,267
Mercialys S.A.		1,703		37,948
Merlin Properties Socimi S.A.		3,381		39,305
Milestone Apartments Real Estate Investment Trust		40,865		552,327
Mirvac Group		107,803		153,845
Morguard Real Estate Investment Trust		21,089		256,920
Mori Hills REIT Investment Corp.		20		30,207
Mori Trust Sogo Reit, Inc.		15		29,637
Nippon Accommodations Fund, Inc.		8		34,319


	Shares		Value
Real Estate Investment Trusts (REITs) – (continued)
Nippon Building Fund, Inc.		25	$	160,288
Nippon Prologis REIT, Inc.		30		73,069
NIPPON REIT Investment Corp.		11		29,239
Nomura Real Estate Master Fund, Inc.		115		182,611
Orix JREIT, Inc.		43		72,501
Parkway Life Real Estate Investment Trust		29,000		52,863
Precinct Properties New Zealand Ltd.(a)		22,735		20,269
Premier Investment Corp.		55		70,938
Property for Industry Ltd.		49,075		56,792
Pure Industrial Real Estate Trust		48,439		193,354
Redefine International PLC(a)		28,667		19,809
Regal Real Estate Investment Trust		308,000		79,013
Reit 1 Ltd.		80,678		237,117
RioCan Real Estate Investment Trust		4,487		97,721
Scentre Group		216,690		775,571
Segro PLC		26,221		160,443
Sekisui House SI Residential Investment Corp.		88		94,666
Shaftesbury PLC		4,592		61,214
Shopping Centres Australasia Property Group		9,663		17,256
Smart Real Estate Investment Trust		780		20,973
Starhill Global REIT		29,000		16,830
Stockland		33,181		110,658
Stride Property Ltd.		34,981		54,302
Suntec Real Estate Investment Trust(a)		63,000		78,981
Tokyu REIT, Inc.		40		58,246
Top REIT, Inc.		8		30,431
Tritax Big Box REIT PLC		2,744		5,455
Unibail-Rodamco SE		2,223		595,790
United Urban Investment Corp.		84		146,889
Vicinity Centres		66,097		167,467
Vital Healthcare Property Trust(a)		47,607		68,909
Warehouses de Pauw CVA		601		54,724
Wereldhave N.V.		904		46,582
Westfield Corp.		43,308		333,810

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			99

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Real Estate Investment Trusts (REITs) – (continued)
Workspace Group PLC		7,584	$	92,767
				16,855,665
Real Estate Management & Development – 2.9%
ADO Group Ltd.*		5,936		77,021
Aeon Mall Co., Ltd.		2,190		31,337
Africa Israel Properties Ltd.		7,503		109,515
Airport City Ltd.*		36,139		356,404
Allreal Holding AG (Registered)* (a)		527		73,511
Amot Investments Ltd.		79,721		290,691
Ascendas India Trust		63,400		45,048
Atrium European Real Estate Ltd.*		1,234		5,229
Atrium Ljungberg AB, Class B		1,034		16,433
Aveo Group		21,223		55,391
Azrieli Group Ltd.		639		25,406
Bayside Land Corp.		252		88,040
Big Shopping Centers Ltd.		1,421		84,936
Brookfield Asset Management, Inc., Class A		21,098		714,159
Bukit Sembawang Estates Ltd.		122,000		403,928
CA Immobilien Anlagen AG*		3,824		73,055
Capital & Counties Properties PLC		25,762		133,406
CapitaLand Ltd.		60,500		139,991
Castellum AB		9,035		144,719
Cheung Kong Property Holdings Ltd.		55,000		377,552
Chinese Estates Holdings Ltd.		7,000		17,398
City Developments Ltd.		2,300		14,272
Citycon Oyj		23,085		58,539
CLS Holdings PLC* (a)		1,424		33,001
Colliers International Group, Inc.		734		30,412
Conwert Immobilien Invest SE*		3,153		49,944
Countrywide PLC(a)		89,959		468,349
Daejan Holdings PLC(a)		5,323		438,229
Daibiru Corp.		400		3,619
Daikyo, Inc.		2,000		3,290
Daito Trust Construction Co., Ltd.		1,500		217,230
Daiwa House Industry Co., Ltd.		14,000		387,700
Deutsche EuroShop AG		597		27,826


	Shares		Value
Real Estate Management & Development – (continued)
Deutsche Wohnen AG		8,745	$	267,880
Emperor International Holdings Ltd.		540,000		108,596
Far East Consortium International Ltd.		612,078		204,363
Fastighets AB Balder, Class B*		7,583		193,487
First Capital Realty, Inc.		1,846		29,932
FirstService Corp.		980		44,110
Fonciere de Paris SIIC		403		66,855
Foxtons Group PLC(a)		11,073		23,439
Gazit-Globe Ltd.		475		4,420
Global Logistic Properties Ltd.(a)		15,000		21,372
Goldcrest Co., Ltd.		1,000		14,804
Grainger PLC		22,537		73,490
Great Eagle Holdings Ltd.		8,281		33,627
GuocoLand Ltd.		20,000		27,529
Hang Lung Group Ltd.		19,000		58,417
Hang Lung Properties Ltd.		54,000		107,761
Heiwa Real Estate Co., Ltd.		4,900		63,062
Hemfosa Fastigheter AB(a)		79,220		827,014
Henderson Land Development Co., Ltd.		27,066		169,224
Hispania Activos Inmobiliarios S.A.*		2,009		29,453
HKR International Ltd.		457,600		188,179
Ho Bee Land Ltd.		135,100		222,143
Hufvudstaden AB, Class A		299		4,636
Hulic Co., Ltd.(a)		8,800		90,471
Hysan Development Co., Ltd.(a)		19,000		84,135
IMMOFINANZ AG* (a)		1,419		3,346
Inmobiliaria Colonial S.A.*		105,686		81,102
Jerusalem Oil Exploration*		5,241		217,363
K Wah International Holdings Ltd.		772,614		374,494
Kabuki-Za Co., Ltd.		1,000		46,638
Kenedix, Inc.(a)		6,700		29,744
Kerry Properties Ltd.		11,500		31,355
Klovern AB, Class B		272,635		320,809
Kowloon Development Co., Ltd.		186,000		179,114
Langham Hospitality Investments and Langham Hospitality Investments Ltd.		498,500		166,441
LEG Immobilien AG*		1,052		97,369

See Accompanying Notes to the Financial Statements.


100		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Real Estate Management & Development – (continued)
LendLease Group		15,568	$	150,885
Leopalace21 Corp.		7,900		49,248
Melisron Ltd.		1,917		74,780
Mitsubishi Estate Co., Ltd.		32,382		641,920
Mitsui Fudosan Co., Ltd.		22,000		560,307
Mobimo Holding AG (Registered)*		196		44,926
Morguard Corp.		3,375		400,145
New World Development Co., Ltd.		185,639		185,227
Nexity S.A.		633		33,952
Nomura Real Estate Holdings, Inc.		5,800		109,717
Norstar Holdings, Inc.		10,104		166,807
NTT Urban Development Corp.		3,200		31,224
Open House Co., Ltd.		15,900		356,652
Oxley Holdings Ltd.		283,100		92,678
Polytec Asset Holdings Ltd.		830,000		71,688
Property & Building Corp. Ltd.		490		37,310
PSP Swiss Property AG (Registered)		705		67,962
Relo Holdings, Inc.		227		30,233
Sagax AB, Class B		4,852		41,883
Savills PLC		6,621		71,967
SEA Holdings Ltd.		136,000		438,302
Sinarmas Land Ltd.		32,000		11,190
Sino Land Co., Ltd.(a)		237,233		373,716
Sponda Oyj		129,779		565,138
St. Modwen Properties PLC(a)		4,897		21,980
Sumitomo Real Estate Sales Co., Ltd.		1,100		22,834
Sumitomo Realty & Development Co., Ltd.		9,000		272,957
Sun Hung Kai Properties Ltd.		30,435		384,694
Swire Pacific Ltd., Class A		19,000		206,602
Swire Pacific Ltd., Class B		42,500		82,949
Swire Properties Ltd.		20,400		53,122
Swiss Prime Site AG (Registered)* (a)		1,729		151,614
TAG Immobilien AG(a)		1,666		22,125
TAI Cheung Holdings Ltd.		165,000		126,347
Takara Leben Co., Ltd.(a)		48,436		322,318


	Shares		Value
Real Estate Management & Development – (continued)
TOC Co., Ltd.		2,600	$	21,579
Tokyo Tatemono Co., Ltd.		7,000		95,388
Tokyu Fudosan Holdings Corp.		17,900		126,811
UK Commercial Property Trust Ltd.		23,527		28,588
The UNITE Group PLC		5,392		49,960
Unizo Holdings Co., Ltd.		1,300		57,348
UOL Group Ltd.*		42,889		195,929
Vonovia SE		7,978		268,508
Wallenstam AB, Class B		9,740		81,951
The Wharf Holdings Ltd.(a)		55,000		298,497
Wheelock & Co., Ltd.		24,000		111,380
Wheelock Properties Singapore Ltd.		28,000		32,395
Wihlborgs Fastigheter AB		4,169		84,706
Wing Tai Holdings Ltd.		278,200		388,099
				17,618,293
Road & Rail – 1.8%
Asciano Ltd.		21,869		147,367
Aurizon Holdings Ltd.		1,177		3,835
Canadian National Railway Co.		17,930		1,105,917
Canadian Pacific Railway Ltd.		2,970		429,235
Central Japan Railway Co.		4,500		817,398
ComfortDelGro Corp. Ltd.		36,000		77,408
DSV A/S		4,787		201,475
East Japan Railway Co.		8,000		734,539
Europcar Groupe S.A.* (b)		23,815		276,311
Firstgroup PLC* (a)		718,410		1,050,820
Fukuyama Transporting Co., Ltd.		5,000		26,076
Go-Ahead Group PLC		24,876		934,708
Hankyu Hanshin Holdings, Inc.		27,000		175,382
Hitachi Transport System Ltd.		2,700		46,785
Keikyu Corp.		10,000		92,808
Keio Corp.		17,000		154,119
Keisei Electric Railway Co., Ltd.		7,000		99,640
Kintetsu Group Holdings Co., Ltd.		61,000		256,554
MTR Corp. Ltd.		29,023		143,671
Nagoya Railroad Co., Ltd.(a)		29,000		149,615
Nankai Electric Railway Co., Ltd.		15,000		81,452
National Express Group PLC		251,542		1,196,099
Nikkon Holdings Co., Ltd.		2,600		50,301

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			101

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Road & Rail – (continued)
Nippon Express Co., Ltd.		16,000	$	76,116
Nishi-Nippon Railroad Co., Ltd.		1,000		6,234
Northgate PLC		83,836		495,298
Odakyu Electric Railway Co., Ltd.		17,000		189,551
Sankyu, Inc.		13,669		66,049
Seino Holdings Co., Ltd.		2,000		21,104
Senko Co., Ltd.		71,900		473,756
Sixt SE(a)		1,177		68,145
Sixt SE (Preference)		238		10,410
SMRT Corp. Ltd.		17,000		19,352
Sotetsu Holdings, Inc.		20,000		131,408
Stagecoach Group PLC		17,200		64,880
Stef S.A.		2,090		157,750
Tobu Railway Co., Ltd.		20,000		105,052
Tokyu Corp.		23,000		204,000
TransForce, Inc.		2,300		43,481
Transport International Holdings Ltd.		129,200		351,431
West Japan Railway Co.		4,400		274,622
				11,010,154
Semiconductors & Semiconductor Equipment – 0.7%
Advantest Corp.		2,300		22,786
ams AG		1,462		38,666
ARM Holdings PLC(a)		30,146		414,008
ASM International N.V.		677		27,624
ASM Pacific Technology Ltd.(a)		5,000		36,096
ASML Holding N.V.*		9,644		932,262
BE Semiconductor Industries N.V.		1,050		31,641
Dialog Semiconductor PLC*		1,976		68,666
Disco Corp.		300		26,525
Imagination Technologies Group PLC*		14,747		33,646
Infineon Technologies AG		26,732		380,422
Melexis N.V.		996		55,008
Nordic Semiconductor ASA* (a)		4,579		26,641
NuFlare Technology, Inc.		2,100		95,290
Renesas Electronics Corp.*		4,200		25,790
Rohm Co., Ltd.		2,200		100,752
Sanken Electric Co., Ltd.		65,475		227,031


	Shares		Value
Semiconductors & Semiconductor Equipment – (continued)
SCREEN Holdings Co., Ltd.		9,000	$	73,013
Shinko Electric Industries Co., Ltd.		38,800		225,558
STMicroelectronics N.V.(a)		18,099		111,194
Sumco Corp.		4,100		27,782
Tokyo Electron Ltd.		3,700		256,280
Tokyo Seimitsu Co., Ltd.		1,400		30,330
Tower Semiconductor Ltd.*		2,247		27,193
U-Blox AG*		98		19,467
Ulvac, Inc.		28,600		922,193
United Photovoltaics Group Ltd.*		256,000		22,111
				4,257,975
Software – 0.8%
AVEVA Group PLC		5,005		118,042
COLOPL, Inc.		1,000		20,478
Computer Modelling Group Ltd.		1,600		12,825
Constellation Software, Inc.		444		173,807
Dassault Systemes		3,851		301,254
The Descartes Systems Group, Inc.*		4,000		73,862
Fidessa Group PLC		1,560		54,595
Fuji Soft, Inc.		14,700		342,650
Gemalto N.V.		2,275		148,002
GungHo Online Entertainment, Inc.(a)		6,700		18,035
IGG, Inc.		459,000		199,997
Industrial & Financial Systems, Class B		588		26,679
Koei Tecmo Holdings Co., Ltd.		1,440		23,256
Konami Holdings Corp.		1,500		48,156
Micro Focus International PLC		1,509		33,799
Nexon Co., Ltd.		2,100		32,660
NICE-Systems Ltd.		1,452		93,519
Nintendo Co., Ltd.		2,300		325,777
NSD Co., Ltd.		6,380		102,800
OBIC Business Consultants Co., Ltd.		1,000		43,320
Open Text Corp.		2,879		161,464
Oracle Corp.		200		11,047
Playtech PLC		4,162		49,050
The Sage Group PLC		33,055		286,660
SAP SE		20,590		1,611,174
Silverlake Axis Ltd.		56,400		23,709

See Accompanying Notes to the Financial Statements.


102		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Software – (continued)
SimCorp A/S		1,532	$	68,887
Software AG		3,535		135,109
Square Enix Holdings Co., Ltd.		1,800		47,761
Temenos Group AG (Registered)*		1,377		71,472
Trend Micro, Inc.		2,500		97,785
UBISOFT Entertainment*		2,091		60,759
Xero Ltd.*		1,674		19,197
				4,837,587
Specialty Retail – 2.4%
ABC-Mart, Inc.(a)		400		26,768
Adastria Co., Ltd.		2,220		76,355
Alpen Co., Ltd.		2,600		45,296
AOKI Holdings, Inc.		26,100		311,995
Aoyama Trading Co., Ltd.		500		19,253
AP Eagers Ltd.		1,953		16,082
Autobacs Seven Co., Ltd.		1,400		24,730
AutoCanada, Inc.(a)		13,279		217,642
Automotive Holdings Group Ltd.		139,008		415,849
BCA Marketplace PLC		21,168		51,707
BEP International Holdings Ltd.		200,000		13,407
Bic Camera, Inc.		4,100		41,423
Bilia AB, Class A		22,605		541,002
Card Factory PLC(a)		8,379		44,716
Chiyoda Co., Ltd.		2,800		73,929
Chow Sang Sang Holdings International Ltd.		241,000		391,456
Chow Tai Fook Jewellery Group Ltd.(a)		16,000		11,138
Clas Ohlson AB, Class B		3,046		61,509
Darty PLC		18,101		44,613
DCM Holdings Co., Ltd.(a)		62,500		480,747
Delek Automotive Systems Ltd.		21,536		200,272
Dixons Carphone PLC		38,352		238,885
Dufry AG (Registered)*		385		50,691
Dunelm Group PLC(a)		400		5,177
EDION Corp.(a)		52,000		431,085
Esprit Holdings Ltd.*		30,800		26,999
Fast Retailing Co., Ltd.		1,200		327,324
FF Group*		230		4,742
Fielmann AG		1,276		94,104


	Shares		Value
Specialty Retail – (continued)
Geo Holdings Corp.		20,900	$	355,121
Groupe Fnac S.A.*		135		7,798
Gulliver International Co., Ltd.(a)		5,300		53,845
Halfords Group PLC		120,729		746,509
Hennes & Mauritz AB, Class B* (a)		18,689		665,097
Hikari Tsushin, Inc.		400		30,805
Hornbach Baumarkt AG		4,643		143,981
Howden Joinery Group PLC		20,984		151,853
Industria de Diseno Textil S.A.(a)		24,815		796,807
JB Hi-Fi Ltd.(a)		57,754		968,327
Jin Co., Ltd.		900		34,361
Joyful Honda Co., Ltd.		4,200		97,350
JUMBO S.A.*		730		9,590
Kingfisher PLC		89,522		477,221
Kohnan Shoji Co., Ltd.		16,500		289,920
Komeri Co., Ltd.		20,900		537,956
K’s Holdings Corp.		700		24,174
Laox Co., Ltd.* (a)		17,000		18,590
Leon’s Furniture Ltd.(a)		13,603		163,657
L’Occitane International S.A.		8,750		16,875
Lookers PLC(a)		183,383		373,675
Luk Fook Holdings International Ltd.(a)		236,672		540,027
Mekonomen AB		1,344		34,176
Nitori Holdings Co., Ltd.		1,900		182,551
OSIM International Ltd.		10,000		10,342
Pal Co., Ltd.		7,200		181,085
Pendragon PLC		842,600		419,670
Pets at Home Group PLC		17,615		62,549
Premier Investments Ltd.		8,030		97,437
RONA, Inc.(a)		53,242		1,015,024
Sa Sa International Holdings Ltd.		481,481		147,724
Sanrio Co., Ltd.(a)		1,200		24,293
Shimachu Co., Ltd.(a)		28,900		693,902
Shimamura Co., Ltd.		500		69,302
Sports Direct International PLC*		3,304		18,644
Super Retail Group Ltd.		227		1,466
SuperGroup PLC		1,528		27,286
T-Gaia Corp.		11,800		148,665
United Arrows Ltd.		200		8,337
USS Co., Ltd.		6,200		101,638
VT Holdings Co., Ltd.		6,300		33,032

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			103

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Specialty Retail – (continued)
WH Smith PLC		2,633	$	64,606
Xebio Holdings Co., Ltd.		2,300		37,855
Yamada Denki Co., Ltd.(a)		24,700		126,968
Yellow Hat Ltd.		11,100		232,903
				14,531,890
Technology Hardware, Storage & Peripherals – 0.6%
Blackberry Ltd.*		13,267		93,841
Brother Industries Ltd.		11,300		134,867
Canon, Inc.		23,300		677,692
Eizo Corp.		3,600		92,932
Elecom Co., Ltd.		11,000		190,093
FUJIFILM Holdings Corp.		11,000		469,732
Hitachi Maxell Ltd.		22,400		347,321
Konica Minolta, Inc.		13,200		119,422
Logitech International S.A. (Registered)(a)		4,117		63,140
NEC Corp.		82,000		206,926
Neopost S.A.		21,287		521,267
Ricoh Co., Ltd.(a)		22,600		239,529
Riso Kagaku Corp.		1,700		27,297
Seiko Epson Corp.(a)		11,200		193,235
Toshiba TEC Corp.*		69,000		269,564
Wacom Co., Ltd.		16,500		69,858
Wincor Nixdorf AG*		774		42,339
				3,759,055
Textiles, Apparel & Luxury Goods – 1.1%
adidas AG		4,135		533,276
Asics Corp.(a)		3,500		72,326
Brunello Cucinelli SpA		820		16,107
Burberry Group PLC(a)		6,636		115,584
Christian Dior SE		1,162		204,093
Cie Financiere Richemont S.A. (Registered)(a)		9,901		659,034
Delta-Galil Industries Ltd.		1,795		49,630
Descente Ltd.		2,800		40,196
Gerry Weber International AG(a)		16,448		237,368
Gildan Activewear, Inc.		5,638		175,405
Global Brands Group Holding Ltd.* (a)		58,000		6,879
Gunze Ltd.		2,000		5,701


	Shares		Value
Textiles, Apparel & Luxury Goods – (continued)
Hermes International		496	$	176,677
HUGO BOSS AG		1,310		83,558
The Japan Wool Textile Co., Ltd.		36,800		263,459
Kering(a)		1,485		254,531
Li & Fung Ltd.(a)		226,000		140,136
Luxottica Group SpA		4,017		218,863
LVMH Moet Hennessy Louis Vuitton SE(a)		5,854		972,878
Moncler SpA		3,061		49,644
Onward Holdings Co., Ltd.(a)		11,000		77,312
OVS SpA* (b)		3,402		22,210
Pacific Textiles Holdings Ltd.		12,000		15,469
Pandora A/S		3,153		409,512
Puma SE		125		28,491
Regina Miracle International Holdings Ltd.* (b)		220,000		334,657
Safilo Group SpA*		58		511
Salvatore Ferragamo SpA		939		21,735
Samsonite International S.A.		27,300		88,159
Seiko Holdings Corp.		13,000		50,666
Seiren Co., Ltd.		30,800		327,589
Sitoy Group Holdings Ltd.		80,000		29,083
Stella International Holdings Ltd.		14,000		35,374
The Swatch Group AG(a)		570		194,817
The Swatch Group AG (Registered)(a)		1,197		80,050
Ted Baker PLC		2,102		73,439
Texwinca Holdings Ltd.		484,000		471,696
Tod’s SpA		231		15,954
TSI Holdings Co., Ltd.		4,800		31,583
Wacoal Holdings Corp.		3,000		37,291
Yondoshi Holdings, Inc.		1,400		35,054
Yue Yuen Industrial Holdings Ltd.		12,500		45,603
				6,701,600
Thrifts & Mortgage Finance – 0.4%
Aareal Bank AG		2,262		80,366
Deutsche Pfandbriefbank AG* (b)		59,180		623,593
Equitable Group, Inc.		5,262		251,842
First National Financial Corp.(a)		8,816		200,587
Genworth MI Canada, Inc.(a)		1,000		25,930
Genworth Mortgage Insurance Australia Ltd.(a)		202,235		368,862

See Accompanying Notes to the Financial Statements.


104		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Thrifts & Mortgage Finance – (continued)
Home Capital Group, Inc.(a)		1,940	$	58,219
OneSavings Bank PLC		2,504		10,516
The Paragon Group of Cos. PLC		179,639		782,091
				2,402,006
Tobacco – 0.8%
British American Tobacco PLC		40,515		2,474,913
Imperial Brands PLC		22,826		1,243,385
Japan Tobacco, Inc.		24,000		1,016,122
Swedish Match AB(a)		3,410		108,262
				4,842,682
Trading Companies & Distributors – 2.0%
AddTech AB, Class B		4,329		54,501
Advan Co., Ltd.		8,300		81,608
Ashtead Group PLC		13,752		182,819
BayWa AG(a)		8,901		310,940
Brenntag AG		3,306		193,908
Bunzl PLC(a)		9,350		279,278
Cramo Oyj		21,505		430,299
Digital Domain Holdings Ltd.*		320,000		27,639
Diploma PLC(a)		5,245		56,204
Finning International, Inc.		5,171		92,059
Grafton Group PLC		3,975		40,208
Hanwa Co., Ltd.(a)		116,000		536,661
Inabata & Co., Ltd.		26,600		268,498
Indutrade AB(a)		882		49,507
ITOCHU Corp.		61,700		815,977
Iwatani Corp.		6,992		42,085
Kanamoto Co., Ltd.		23,123		610,519
Kanematsu Corp.		254,000		396,448
Kuroda Electric Co., Ltd.		21,200		336,640
Marubeni Corp.(a)		58,000		317,714
MISUMI Group, Inc.		8,100		117,645
Mitani Corp.		9,600		278,144
Mitsubishi Corp.		55,600		968,109
Mitsui & Co., Ltd.		66,800		837,536
MonotaRO Co., Ltd.(a)		800		25,085
Nagase & Co., Ltd.		4,900		56,604
Nippon Steel & Sumikin Bussan Corp.		81,000		294,490
Nishio Rent All Co., Ltd.		12,100		327,055


	Shares		Value
Trading Companies & Distributors – (continued)
Noble Group Ltd.* (a)		193,100	$	66,088
Ramirent Oyj		40,723		284,517
Rexel S.A.		13,108		198,625
Richelieu Hardware Ltd.		1,272		22,595
Russel Metals, Inc.		38,839		692,690
Seven Group Holdings Ltd.(a)		71,405		318,782
SIG PLC		351,750		698,202
Sojitz Corp.		32,000		66,695
Sumitomo Corp.(a)		40,800		446,152
Summit Ascent Holdings Ltd.*		56,000		12,056
Toromont Industries Ltd.		3,183		95,571
Toyota Tsusho Corp.		6,400		150,736
Travis Perkins PLC		6,888		186,467
Trusco Nakayama Corp.		3,300		134,782
Wolseley PLC		6,342		354,986
Yamazen Corp.		51,700		418,935
Yuasa Trading Co., Ltd.		3,500		81,420
				12,257,479
Transportation Infrastructure – 0.6%
Abertis Infraestructuras S.A.(a)		5,386		90,836
Aena S.A.* (b)		1,722		245,649
Aeroports de Paris		993		124,993
Ansaldo STS SpA		8,581		104,179
ASTM SpA		18,700		246,093
Atlantia SpA		9,078		252,867
Auckland International Airport Ltd.		8,195		35,242
BBA Aviation PLC(a)		45,505		133,454
Flughafen Wien AG		215		24,583
Flughafen Zuerich AG (Registered)*		50		45,931
Fraport AG Frankfurt Airport Services Worldwide		267		16,165
Groupe Eurotunnel SE (Registered)		17,134		218,812
Hamburger Hafen und Logistik AG(a)		2,488		39,040
Hong Kong Aircraft Engineering Co., Ltd.		24,800		161,450
Hutchison Port Holdings Trust, Class U		34,400		15,308
Japan Airport Terminal Co., Ltd.(a)		500		18,763

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			105

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Transportation Infrastructure – (continued)
Kamigumi Co., Ltd.		10,000	$	93,275
Macquarie Atlas Roads Group		12,409		46,119
Mitsubishi Logistics Corp.(a)		3,000		42,535
Port of Tauranga Ltd.		3,261		42,664
Qube Holdings Ltd.		17,574		33,395
SATS Ltd.		19,000		57,959
SIA Engineering Co., Ltd.		5,000		14,099
Societa Iniziative Autostradali e Servizi SpA		1,647		17,223
The Sumitomo Warehouse Co., Ltd.		78,000		403,140
Sydney Airport		33,682		175,047
Transurban Group		50,255		444,117
Westshore Terminals Investment Corp.(a)		36,391		532,821
				3,675,759
Water Utilities – 0.1%
The Athens Water Supply & Sewage Co. S.A.		24,705		131,576
Pennon Group PLC(a)		12,514		148,854
Severn Trent PLC		5,118		166,966
United Utilities Group PLC		16,006		220,286
				667,682
Wireless Telecommunication Services – 0.9%
Cellcom Israel Ltd.*		5,408		40,888
Drillisch AG(a)		1,203		49,651
Freenet AG		2,099		64,117
KDDI Corp.		40,400		1,196,576
M1 Ltd.		7,000		12,864
Millicom International Cellular S.A. (SDR)		1,668		96,473
NTT DOCOMO, Inc.		29,800		723,311
Okinawa Cellular Telephone Co.		5,700		163,017
Rogers Communications, Inc., Class B		8,368		326,009
SmarTone Telecommunications Holdings Ltd.		45,240		74,883
SoftBank Group Corp.		20,641		1,155,178
StarHub Ltd.(a)		9,000		22,164


	Shares		Value
Wireless Telecommunication Services – (continued)
Tele2 AB, Class B		2,769	$	26,439
Vodafone Group PLC(a)		529,631		1,700,677
				5,652,247
Total Common Stocks (Cost $626,392,312)				610,321,631
	No. of Rights
RIGHTS – 0.0%^†
Hemfosa Fastigheter AB, expiring 05/10/2016 at 69.00 SEK*		74,093		26,784
Total Rights (Cost $–)				26,784
	No. of Warrants
WARRANTS – 0.0%^†
Ezion Holdings Ltd., expiring 04/24/2020 at 0.50 SGD* (a)		152,356		18,137
Total Warrants (Cost $–)				18,137
	Principal Amount
SECURITIES LENDING REINVESTMENTS(c) – 3.6%
Certificates of Deposits – 0.4%
Chiba Bank Ltd., New York Branch 0.61%, due 06/27/2016		500,000		500,000
Cooperatieve Rabobank UA, Netherlands 0.58%, due 05/02/2016		500,000		500,000
Credit Suisse AG, New York 0.63%, due 05/03/2016		500,000		500,000
Mizuho Corporate Bank Ltd., London 0.72%, due 06/30/2016		500,000		499,620
Norinchukin Bank, New York 0.60%, due 06/13/2016		500,000		500,000
Total Certificates of Deposits (Cost $2,499,411)				2,499,620

See Accompanying Notes to the Financial Statements.


106		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)


	Principal Amount		Value
SECURITIES LENDING REINVESTMENTS(c) – (continued)
MASTER DEMAND NOTE – 0.1%
Natixis Financial Products LLC 0.64%, due 05/02/2016	$	500,000	$	500,000
Total Master Demand Note (Cost $500,000)				500,000

MONEY MARKET FUNDS(d) – 1.6%
BlackRock Cash Funds – Prime, Institutional Class
0.46%		2,000,000		2,000,000
BlackRock Liquidity Funds, TempFund, Institutional Class
0.42%		1,000,000		1,000,000
Dreyfus Cash Advantage Fund, Institutional Class
0.37%		2,000,000		2,000,000
Fidelity Money Market Portfolio, Institutional Class
0.38%		1,000,000		1,000,000
Fidelity Prime Money Market Portfolio, Institutional Class
0.44%		2,000,000		2,000,000
Morgan Stanley Liquidity Funds – Prime, Institutional Class
0.39%		2,000,000		2,000,000
Total Money Market Funds (Cost $10,000,000)				10,000,000

REPURCHASE AGREEMENTS – 1.5%
Citigroup Global Markets, Inc., 0.31%, dated 04/29/2016, due 05/02/2016, repurchase price $7,738,170, collateralized by various U.S. Treasury Securities, ranging from 0.00% – 6.63%, maturing 11/15/2026 – 02/15/2046; U.S. Government Agency Mortgage Securities, ranging from 2.00% – 8.00%, maturing 07/20/2026 – 04/20/2046; total market value $7,893,532		7,737,970		7,737,970


	Principal Amount		Value
REPURCHASE AGREEMENTS – (continued)
Credit Suisse Securities USA LLC, 0.44%, dated 04/29/2016, due 05/02/2016, repurchase price $1,500,055, collateralized by various Common Stocks; total market value $1,666,687	$	1,500,000	$	1,500,000
Total Repurchase Agreements (Cost $9,237,970)				9,237,970
Total Securities Lending Reinvestments (Cost $22,237,381)				22,237,590
Total Investment Securities (Cost $648,629,693) – 102.5%				632,604,142
Liabilities in excess of other assets – (2.5%)				(15,432,741	)
NET ASSETS – 100.0%			$	617,171,401

*	Non-income producing security.

^	Security fair valued in accordance with procedures adopted by the Board of Trustees. At 04/30/2016, the value of these securities amounted to $107,014 or 0.02% of net assets.

^†	Amount represents less than 0.05%.

^(a)

The security or a portion of this security is on loan at 04/30/2016. The total value of securities on loan at 04/30/2016 was $73,108,715, which was collateralized in the form of cash with a value of $22,236,682; $9,362,051 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 7.63%, and maturity dates ranging from 05/15/2016 – 11/15/2045 and $45,890,664 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 8.25%, and maturity dates ranging from 06/08/2016 – 07/22/2068; a total value of $77,489,397.

^(b)

Securities exempt from registration under 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)

The security was purchased with cash collateral held from securities on loan at 04/30/2016. The total value of securities purchased was $22,237,590.

^(d)

Represents 7-day effective yield as of 04/30/2016.

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			107

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)

Percentages shown are based on Net Assets.

Abbreviations:

AUD – Australian Dollar

CAD – Canadian Dollar

CDI – CHESS Depositary Interest

CHF – Swiss Franc

CVA – Dutch Certificate

DKK – Danish Krone

EUR – Euro

FDR – Finnish Depositary Receipt

GBP – British Pound

HKD – Hong Kong Dollar

ILS – Israeli Shekel

JPY – Japanese Yen

MTF – Multilateral Trading Facility

NOK – Norwegian Krone

REIT – Real Estate Investment Trust

SDR – Swedish Depositary Receipt

SEK – Swedish Krona

SGD – Singapore Dollar

USD – US Dollar

As of April 30, 2016, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:



Aggregate gross unrealized appreciation	$	51,770,159
Aggregate gross unrealized depreciation		(71,018,017	)
Net unrealized depreciation	$	(19,247,858	)
Federal income tax cost of investments	$	651,852,000

Futures Contracts

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund had the following open long futures contracts as of April 30, 2016:


	Number of Contracts		Expiration Date		Notional Amount at Value		Unrealized Appreciation (Depreciation)
EURO STOXX 50^® Index Futures Contracts		60		06/17/2016	$	2,045,824	$	(12,063	)
FTSE 100^® Index Futures Contracts		12		06/17/2016		1,091,995		14,344
Hang Seng Index Futures Contracts		2		05/30/2016		268,834		(5,029	)
Nikkei 225 Index Futures Contracts		22		06/09/2016		1,660,358		(54,597	)
S&P Toronto Stock Exchange 60^® Index Futures Contracts		6		06/16/2016		779,531		30,766
SPI 200^® Index Futures Contracts		5		06/16/2016		499,005		12,766
							$	(13,813	)

Forward Foreign Currency Contracts

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund had the following outstanding contracts as of April 30, 2016:


Contracts to Receive		Counterparty	In Exchange For			Receipt Date		Unrealized Appreciation (Depreciation)
CAD	422,809	Bank of Montreal		USD	318,223		06/15/2016	$	19,323
CAD	131,611	The Toronto-Dominion Bank		USD	100,000		06/15/2016		5,071
DKK	459,137	Societe Generale		USD	68,567		06/15/2016		2,182
EUR	656,570	Morgan Stanley		USD	731,964		06/15/2016		21,052
EUR	267,563	The Toronto-Dominion Bank		USD	300,000		06/15/2016		6,867
EUR	159,076	Bank of Montreal		USD	180,000		06/15/2016		2,444
GBP	5,484	Bank of New York		USD	7,866		06/15/2016		169
GBP	140,162	The Toronto-Dominion Bank		USD	200,000		06/15/2016		5,349
HKD	542,184	Societe Generale		USD	69,931		06/15/2016		(8	)
ILS	209	Citibank N.A.		USD	54		06/15/2016		2
JPY	153,973,372	Bank of New York		USD	1,357,170		06/15/2016		83,592
JPY	36,919,824	Bank of Montreal		USD	340,000		06/15/2016		5,467
SEK	1,394,206	Morgan Stanley		USD	167,616		06/15/2016		6,449
USD	30,330	Citibank N.A.		AUD	40,410		06/15/2016		(452	)
USD	140,000	Citibank N.A.		CAD	183,117		06/15/2016		(6,190	)

See Accompanying Notes to the Financial Statements.


108		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund (cont.)

Forward Foreign Currency Contracts (cont.)


Contracts to Receive		Counterparty	In Exchange For			Receipt Date		Unrealized Appreciation (Depreciation)
USD	49,511	Citibank N.A.		CHF	48,685		06/15/2016	$	(1,381	)
USD	250,000	Societe Generale		CHF	241,715		06/15/2016		(2,668	)
USD	770,000	The Toronto-Dominion Bank		EUR	680,224		06/15/2016		(10,145	)
USD	1,000,000	The Toronto-Dominion Bank		JPY	113,157,000		06/15/2016		(58,835	)
USD	1,010,000	The Toronto-Dominion Bank		JPY	112,232,210		06/15/2016		(40,181	)
USD	62,945	Bank of New York		NOK	533,926		06/15/2016		(3,347	)
USD	130,000	Citibank N.A.		SEK	1,063,917		06/15/2016		(2,829	)
USD	121,047	Societe Generale		SGD	166,885		06/15/2016		(2,994	)
								$	28,937

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, 2016:


Australia	6.4	%
Austria	0.3
Belgium	1.2
Canada	9.0
Denmark	1.3
Finland	1.0
France	6.9
Germany	6.4
Greece	0.5
Hong Kong	3.2
Ireland	0.5
Israel	1.0
Italy	2.3
Japan	25.9
Netherlands	2.4
New Zealand	0.4
Norway	1.0
Portugal	0.3
Singapore	1.8
Spain	2.4
Sweden	2.4
Switzerland	5.5
United Kingdom	16.8
Other¹	1.1
	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			109

Schedule of Investments

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund

April 30, 2016 (Unaudited)


	Shares		Value
COMMON STOCKS – 99.1%
Aerospace & Defense – 0.3%
Aselsan Elektronik Sanayi ve Ticaret A/S		1,645	$	11,750
AVIC International Holding HK Ltd.*		324,000		25,061
AviChina Industry & Technology Co., Ltd., Class H		60,000		42,077
Bharat Electronics Ltd.		1,566		27,903
Embraer S.A.		23,600		136,575
Hanwha Techwin Co., Ltd.		2,104		77,003
Korea Aerospace Industries Ltd.		1,900		113,059
S&T Dynamics Co., Ltd.		14,986		147,308
United Aircraft Corp. PJSC*		25,155,036		164,310
				745,046
Air Freight & Logistics – 0.1%
Blue Dart Express Ltd.		60		5,134
Hanjin Transportation Co., Ltd.		866		28,502
Hyundai Glovis Co., Ltd.		708		118,062
Kerry TJ Logistics Co., Ltd.		14,000		18,079
POS Malaysia Bhd		21,600		16,035
Sinotrans Ltd., Class H(a)		122,000		56,618
				242,430
Airlines – 0.8%
Aeroflot – Russian Airlines PJSC*		427,129		511,637
Air Arabia PJSC		59,341		20,034
Air China Ltd., Class H		118,000		89,749
AirAsia Bhd		117,200		57,002
Asiana Airlines, Inc.*		4,720		19,801
Bangkok Airways Co., Ltd. (NVDR)		3,600		2,628
Cebu Air, Inc.		158,710		301,257
China Airlines Ltd.*		86,000		28,131
China Eastern Airlines Corp. Ltd., Class H*		52,000		28,557
China Southern Airlines Co., Ltd., Class H		78,000		49,069


	Shares		Value
Airlines – (continued)
Controladora Vuela Cia de Aviacion SAB de CV, Class A*		31,100	$	65,235
Eva Airways Corp.*		51,627		25,611
Garuda Indonesia Persero Tbk PT*		7,830,716		263,043
Grupo Aeromexico SAB de CV*		23,600		54,063
Hanjin Kal Corp.		1,615		27,994
Jet Airways India Ltd.*		20,638		192,114
Korean Air Lines Co., Ltd.*		1,390		35,622
Latam Airlines Group S.A.*		12,626		90,181
Pegasus Hava Tasimaciligi A/S*		5,162		30,130
Thai Airways International PCL (NVDR)*		56,620		23,504
Turk Hava Yollari AO*		34,244		84,559
				1,999,921
Auto Components – 1.9%
Actron Technology Corp.		7,000		27,889
Apollo Tyres Ltd.		7,111		17,169
Balkrishna Industries Ltd.		6,583		66,088
Bharat Forge Ltd.		4,746		57,105
Bosch Ltd.		236		69,964
Brisa Bridgestone Sabanci Sanayi ve Ticaret A/S		5,506		16,394
Ceat Ltd.		13,747		227,687
Chaowei Power Holdings Ltd.* (a)		531,000		340,894
Cheng Shin Rubber Industry Co., Ltd.		70,400		146,462
Cub Elecparts, Inc.		1,149		13,929
Depo Auto Parts Ind Co., Ltd.		9,000		27,876
Dong Ah Tire & Rubber Co., Ltd.		823		20,369
Exide Industries Ltd.		15,469		34,341
Fuyao Glass Industry Group Co., Ltd., Class H* (b)		25,600		57,951
Halla Holdings Corp.		5,664		281,361
Hankook Tire Co., Ltd.		4,276		199,276
Hanon Systems		7,458		67,419
Hiroca Holdings Ltd.		8,000		31,501

See Accompanying Notes to the Financial Statements.


110		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Auto Components – (continued)
Hota Industrial Manufacturing Co., Ltd.		2,537	$	12,192
Hu Lane Associate, Inc.		8,000		37,206
Hyundai Mobis Co., Ltd.		3,894		890,282
Hyundai Wia Corp.		743		62,993
Iron Force Industrial Co., Ltd.		3,060		18,311
Kenda Rubber Industrial Co., Ltd.		28,733		50,066
Kumho Tire Co., Inc.*		5,524		39,803
Macauto Industrial Co., Ltd.		5,000		27,052
Mahindra CIE Automotive Ltd.*		6,379		19,061
Mahle-Metal Leve S.A.		6,900		45,489
Mando Corp.		399		66,010
Minth Group Ltd.		20,000		52,338
Motherson Sumi Systems Ltd.		14,827		56,409
Motonic Corp.		1,535		13,539
Nan Kang Rubber Tire Co., Ltd.*		25,000		21,122
Nemak SAB de CV(b)		123,900		178,516
Nexen Corp.^		1,652		117,151
Nexen Tire Corp.		1,812		23,139
Nexteer Automotive Group Ltd.		15,000		15,817
Rassini SAB de CV		3,402		15,893
S&T Holdings Co., Ltd.		3,335		69,808
S&T Motiv Co., Ltd.		48		2,806
Sanok Rubber Co. S.A.		2,092		32,258
Sebang Global Battery Co., Ltd.		4,569		172,631
SL Corp.		10,738		150,317
Sri Trang Agro-Industry PCL (NVDR)		438,838		162,067
Sungwoo Hitech Co., Ltd.		28,261		230,920
Tianneng Power International Ltd.* (a)		590,000		484,492
Tong Yang Industry Co., Ltd.		16,400		24,992
Tube Investments of India Ltd.		3,206		19,817
Tung Thih Electronic Co., Ltd.		1,000		17,890
Tupy S.A.		1,600		6,403
Weifu High-Technology Group Co., Ltd., Class B		20,800		43,975
				4,884,440


	Shares		Value
Automobiles – 1.8%
Astra International Tbk PT		625,400	$	318,912
BAIC Motor Corp. Ltd., Class H(b)		96,000		80,936
Bajaj Auto Ltd.		1,947		73,147
Brilliance China Automotive Holdings Ltd.(a)		74,000		73,359
Byd Co., Ltd., Class H* (a)		22,000		129,609
China Motor Corp.		36,000		25,226
Dongfeng Motor Group Co., Ltd., Class H		146,000		160,357
DRB-Hicom Bhd		545,900		135,549
Ford Otomotiv Sanayi A/S		2,839		38,201
Geely Automobile Holdings Ltd.(a)		125,000		62,361
Ghabbour Auto*		314,156		82,785
Great Wall Motor Co., Ltd., Class H		177,000		134,167
Guangzhou Automobile Group Co., Ltd., Class H(a)		151,984		176,922
Hero MotoCorp Ltd.		2,950		128,861
Hyundai Motor Co.		8,732		1,099,738
Hyundai Motor Co. (2nd Preference)		1,358		119,066
Hyundai Motor Co. (3rd Preference)		116		9,265
Hyundai Motor Co. (Preference)		863		73,772
Jiangling Motors Corp. Ltd., Class B		49,300		135,942
Kia Motors Corp.		15,222		639,928
Mahindra & Mahindra Ltd.		6,533		131,088
Mahindra & Mahindra Ltd. (GDR)		2,707		53,599
Maruti Suzuki India Ltd.		3,835		219,395
Oriental Holdings Bhd		17,800		31,668
Sanyang Motor Co., Ltd.		35,000		22,463
Ssangyong Motor Co.*		2,570		18,112
Tata Motors Ltd.*		39,252		241,649
Tata Motors Ltd. (ADR)*		3,631		110,310
Tata Motors Ltd., Class A*		20,445		91,791
Tofas Turk Otomobil Fabrikasi A/S		5,005		39,656
TVS Motor Co., Ltd.		6,454		31,117
UMW Holdings Bhd		33,300		55,919

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			111

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Automobiles – (continued)
Yulon Motor Co., Ltd.		63,000	$	55,474
Yulon Nissan Motor Co., Ltd.		2,000		12,526
				4,812,870
Banks – 14.5%
Abu Dhabi Commercial Bank PJSC		106,902		192,094
AFFIN Holdings Bhd		3,510		2,085
Agricultural Bank of China Ltd., Class H		1,475,000		534,310
Ajman Bank PJSC*		65,039		35,238
Akbank TAS		102,199		314,537
Akbank TAS (ADR)		9,936		60,808
Al Khalij Commercial Bank QSC		3,010		14,223
Alior Bank S.A.*		1,395		25,206
Allahabad Bank		103,152		90,587
Alliance Financial Group Bhd		15,300		15,666
AMMB Holdings Bhd		20,400		23,656
Andhra Bank		128,629		107,142
Attijariwafa Bank		2,242		83,595
Axis Bank Ltd.		39,353		280,271
Banco Bradesco S.A.		45,430		371,518
Banco Bradesco S.A. (Preference)		166,760		1,255,001
Banco Davivienda S.A. (Preference)		82,069		772,238
Banco de Bogota S.A.		4,720		104,216
Banco de Chile		707,551		77,595
Banco de Credito e Inversiones		3,478		149,604
Banco do Brasil S.A.		64,900		410,186
Banco Santander Brasil S.A.		29,800		160,537
Banco Santander Chile		2,305,838		110,988
Bancolombia S.A.		10,849		96,988
Bancolombia S.A. (Preference)		23,096		219,268
Bangkok Bank PCL (NVDR)		26,500		124,420
Bank Central Asia Tbk PT		430,700		426,193
Bank Danamon Indonesia Tbk PT*		266,000		66,359
Bank Handlowy w Warszawie S.A.		722		13,989


	Shares		Value
Banks – (continued)
Bank Mandiri Persero Tbk PT		283,200	$	207,225
Bank Millennium S.A.*		20,424		26,734
Bank Negara Indonesia Persero Tbk PT		212,400		73,844
Bank of Ayudhya PCL (NVDR)		80,100		79,687
Bank of Baroda		27,966		66,574
Bank of China Ltd., Class H		4,425,000		1,808,288
Bank of Chongqing Co., Ltd., Class H		484,500		383,493
Bank of Communications Co., Ltd., Class H		1,319,978		835,494
Bank of India		10,862		15,148
Bank of the Philippine Islands		42,480		81,993
Bank Pan Indonesia Tbk PT*		119,500		7,113
Bank Pekao S.A.		4,602		187,041
Bank Pembangunan Daerah Jawa Barat Dan Banten Tbk PT		3,528,200		251,479
Bank Pembangunan Daerah Jawa Timur Tbk PT		5,221,500		182,127
Bank Rakyat Indonesia Persero Tbk PT		330,400		259,299
Bank Tabungan Negara Persero Tbk PT		3,328,600		444,217
Bank Zachodni WBK S.A.		1,362		94,668
Banque Centrale Populaire		1,392		33,330
Banregio Grupo Financiero SAB de CV		4,800		28,891
Barclays Africa Group Ltd.		10,443		106,266
BDO Unibank, Inc.		43,070		91,858
BIMB Holdings Bhd		21,580		21,268
BMCE Bank		376		8,420
BNK Financial Group, Inc.		13,835		112,802
BOC Hong Kong Holdings Ltd.		129,000		386,641
Canara Bank		6,769		21,017
Capitec Bank Holdings Ltd.(a)		2,546		106,118
Chang Hwa Commercial Bank Ltd.		177,000		92,470
China CITIC Bank Corp. Ltd., Class H*		708,000		445,398
China Construction Bank Corp., Class H		5,708,982		3,672,436

See Accompanying Notes to the Financial Statements.


112		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Banks – (continued)
China Development Financial Holding Corp.		472,000	$	120,440
China Everbright Bank Co., Ltd., Class H(a)		242,000		110,125
China Merchants Bank Co., Ltd., Class H(a)		265,500		583,900
China Minsheng Banking Corp. Ltd., Class H		383,500		361,391
Chong Hing Bank Ltd.		21,000		44,939
Chongqing Rural Commercial Bank Co., Ltd., Class H		196,000		103,341
CIMB Group Holdings Bhd		84,849		101,432
City Union Bank Ltd.		43,340		61,354
The Commercial Bank QSC		7,437		78,254
Commercial International Bank Egypt SAE		37,465		190,617
Credicorp Ltd.		2,024		294,330
Credit Agricole Egypt SAE		6,907		17,112
CTBC Financial Holding Co., Ltd.		1,003,000		510,005
DGB Financial Group, Inc.		4,737		38,124
Doha Bank QSC		4,043		40,931
Dubai Islamic Bank PJSC		47,518		75,812
E.Sun Financial Holding Co., Ltd.		243,434		135,103
East West Banking Corp.		271,800		88,808
EnTie Commercial Bank Co., Ltd.		33,000		14,222
Far Eastern International Bank		71,676		20,823
Federal Bank Ltd.		64,275		44,430
First Financial Holding Co., Ltd.		296,954		145,471
First Gulf Bank PJSC		38,232		134,797
Getin Noble Bank S.A.*		932,702		124,530
Grupo Aval Acciones y Valores S.A.		87,165		36,976
Grupo Aval Acciones y Valores S.A. (Preference)		142,409		59,412
Grupo Elektra SAB de CV		3,540		66,858
Grupo Financiero Banorte SAB de CV, Class O		88,500		504,622
Grupo Financiero Inbursa SAB de CV, Class O(a)		76,700		151,257


	Shares		Value
Banks – (continued)
Grupo Financiero Santander Mexico SAB de CV, Class B		59,000	$	108,602
Grupo Security S.A.		49,464		15,203
Hana Financial Group, Inc.		17,700		398,460
Harbin Bank Co., Ltd., Class H(b)		2,419,000		686,047
Hong Leong Bank Bhd		13,572		46,763
Hong Leong Financial Group Bhd		13,843		52,941
Hua Nan Financial Holdings Co., Ltd.		236,150		114,586
Huishang Bank Corp., Ltd., Class H		2,000		964
ICICI Bank Ltd.		96,583		345,023
IDBI Bank Ltd.		23,563		24,636
Indian Bank		82,742		121,624
Indian Overseas Bank*		310,879		146,699
IndusInd Bank Ltd.		10,089		159,533
Industrial & Commercial Bank of China Ltd., Class H		4,484,000		2,433,564
Industrial Bank of Korea		15,019		160,155
ING Bank Slaski S.A.		1,908		60,889
Intercorp Financial Services, Inc.		1,892		53,922
Itau CorpBanca		7,874,802		71,599
Itau Unibanco Holding S.A. (Preference)		177,000		1,687,522
Itausa – Investimentos Itau S.A.		56,829		138,499
Itausa – Investimentos Itau S.A. (Preference)		212,400		529,954
The Jammu & Kashmir Bank Ltd.		186,322		192,979
JB Financial Group Co., Ltd.		4,731		24,290
The Karur Vysya Bank Ltd.		40,179		291,333
Kasikornbank PCL (NVDR)		36,000		171,085
KB Financial Group, Inc.		22,479		686,562
Kiatnakin Bank PCL (NVDR)		29,400		34,930
King’s Town Bank Co., Ltd.		38,000		26,509
Komercni banka A/S		531		109,258
Krung Thai Bank PCL (NVDR)*		155,900		78,106
Kwangju Bank		18,026		142,227
LH Financial Group PCL (NVDR)		290,449		14,552

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			113

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Banks – (continued)
Malayan Banking Bhd		100,300	$	229,279
Masraf Al Rayan QSC		9,853		92,577
mBank S.A.*		361		30,545
Mega Financial Holding Co., Ltd.		413,000		293,235
Metropolitan Bank & Trust Co.		60,862		105,466
National Bank of Abu Dhabi PJSC		45,430		109,835
The National Bank of Ras Al-Khaimah PSC		29,540		42,706
Nedbank Group Ltd.		6,372		81,825
Oriental Bank of Commerce		59,263		81,305
OTP Bank PLC(a)		7,906		209,649
Philippine National Bank*		22,283		24,332
Powszechna Kasa Oszczednosci Bank Polski S.A.*		30,503		195,325
Public Bank Bhd		35,400		169,456
Qatar International Islamic Bank QSC		1,346		23,371
Qatar Islamic Bank SAQ		2,493		67,258
Qatar National Bank SAQ		7,644		302,408
RHB Capital Bhd		48,467		75,929
Rizal Commercial Banking Corp.		429,580		284,020
Sberbank of Russia PJSC		659,325		1,259,376
Sberbank of Russia PJSC (Preference)		67,231		87,310
Sekerbank TAS*		314,128		178,744
Shengjing Bank Co., Ltd., Class H(b)		61,500		83,879
Shinhan Financial Group Co., Ltd.		27,258		999,986
The Siam Commercial Bank PCL (NVDR)		84,300		322,189
SinoPac Financial Holdings Co., Ltd.		295,000		87,440
Sociedad Matriz del Banco de Chile S.A., Class B		133,757		38,018
Standard Bank Group Ltd.		39,294		353,904
State Bank of Bikaner & Jaipur*		13,455		106,182


	Shares		Value
Banks – (continued)
State Bank of India		66,190	$	188,601
State Bank of India (GDR)		1,914		53,975
Syndicate Bank		123,680		129,871
Taichung Commercial Bank Co., Ltd.		35,032		9,928
Taishin Financial Holding Co., Ltd.		531,000		200,856
Taiwan Business Bank*		154,480		39,850
Taiwan Cooperative Financial Holding Co., Ltd.		295,000		130,337
Thanachart Capital PCL (NVDR)		11,200		11,142
Tisco Financial Group PCL (NVDR)		28,820		35,891
TMB Bank PCL (NVDR)		965,700		63,035
Turkiye Garanti Bankasi A/S		48,606		149,942
Turkiye Garanti Bankasi A/S (ADR)		30,454		92,276
Turkiye Halk Bankasi A/S		29,230		112,451
Turkiye Is Bankasi, Class C		67,799		119,133
Turkiye Sinai Kalkinma Bankasi A/S		46,892		29,367
Turkiye Vakiflar Bankasi TAO, Class D		78,016		137,923
UCO Bank		206,265		123,610
Union Bank of India		5,963		11,453
Union Bank of Taiwan		29,356		8,219
Union National Bank PJSC		54,793		53,257
VTB Bank PJSC		178,707,755		193,537
Woori Bank		16,193		149,225
Yapi ve Kredi Bankasi A/S*		25,253		38,680
Yes Bank Ltd.		6,693		95,148
				37,771,545
Beverages – 0.9%
Ambev S.A.		147,500		820,679
Anadolu Efes Biracilik ve Malt Sanayii A/S		11,165		87,904
Arca Continental SAB de CV		12,800		88,745
Capevin Holdings Ltd.		69,631		44,192
Carabao Group PCL (NVDR)		2,800		3,206
Carlsberg Brewery Malaysia Bhd, Class B		1,300		4,492

See Accompanying Notes to the Financial Statements.


114		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Beverages – (continued)
China Resources Beer Holdings Company Ltd.(a)		32,331	$	71,187
Cia Cervecerias Unidas S.A.		8,207		91,988
Coca-Cola Embonor S.A. (Preference), Class B		4,368		8,055
Coca-Cola Femsa SAB de CV		17,700		154,523
Coca-Cola Icecek A/S		912		13,395
Distell Group Ltd.		563		6,313
Embotelladora Andina S.A. (Preference), Class B		4,656		15,752
Emperador, Inc.		146,700		24,842
Fomento Economico Mexicano SAB de CV		70,800		661,656
Fraser & Neave Holdings Bhd		2,700		15,620
Hey Song Corp.		23,500		25,392
Hite Jinro Co., Ltd.		1,102		27,033
Lotte Chilsung Beverage Co., Ltd.		24		41,496
Muhak Co., Ltd.		761		21,439
Organizacion Cultiba SAB de CV		4,800		6,619
Tibet Water Resources Ltd.		131,000		37,490
Tsingtao Brewery Co., Ltd., Class H(a)		10,000		37,900
United Breweries Ltd.		2,435		27,979
United Spirits Ltd.*		2,639		94,531
Vina Concha y Toro S.A.		960		1,613
Yantai Changyu Pioneer Wine Co., Ltd., Class B		9,600		30,419
				2,464,460
Biotechnology – 0.4%
3SBio, Inc.* (b)		19,980		24,186
Amicogen, Inc.		459		25,581
Biocon Ltd.		7,084		62,520
Cell Biotech Co., Ltd.		1,122		59,871
Celltrion, Inc.*		2,857		252,250
China Biologic Products, Inc.*		400		46,800
China Regenerative Medicine International Ltd.*		1,230,000		50,740
Genexine Co., Ltd.*		728		35,397


	Shares		Value
Biotechnology – (continued)
Green Cross Corp.		214	$	32,493
Green Cross Holdings Corp.		768		23,726
iNtRON Biotechnology, Inc.*		1,442		83,528
Medigen Biotechnology Corp.*		12,099		22,883
Medy-Tox, Inc.		201		74,621
Naturalendo Tech Co., Ltd.*		1,586		31,041
OBI Pharma, Inc.*		4,000		47,189
PharmaEngine, Inc.		2,065		14,310
Seegene, Inc.*		655		20,149
Taigen Biopharmaceuticals Holdings Ltd.*		29,665		25,201
Taiwan Liposome Co., Ltd.*		4,340		18,166
ViroMed Co., Ltd.*		354		43,807
				994,459
Building Products – 0.4%
Astral Polytechnik Ltd.		1,823		12,167
Byucksan Corp.		3,380		26,876
China Lesso Group Holdings Ltd.		28,000		15,449
Chosun Refractories Co., Ltd.		791		63,522
Dynasty Ceramic PCL (NVDR)		172,800		21,272
IS Dongseo Co., Ltd.		630		25,794
Kajaria Ceramics Ltd.		960		15,193
KCC Corp.		262		97,727
LG Hausys Ltd.		146		19,221
Ras Al Khaimah Ceramics		323,626		295,171
Sintex Industries Ltd.		230,218		288,076
Sunspring Metal Corp.		17,000		21,399
Taiwan Glass Industry Corp.*		75,000		31,974
Trakya Cam Sanayii A/S		178,564		136,752
Xxentria Technology Materials Corp.		12,653		34,248
				1,104,841
Capital Markets – 1.5%
Administradora de Fondos de Pensiones Habitat S.A.		11,350		14,885
Brait SE*		8,909		99,998
Capital Securities Corp.		77,000		20,317
Central China Securities Co., Ltd., Class H		826,000		409,955

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			115

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Capital Markets – (continued)
CETIP S.A. – Mercados Organizados		6,906	$	84,374
China Bills Finance Corp.		71,000		27,077
China Cinda Asset Management Co., Ltd., Class H		590,000		193,949
China Everbright Ltd.		38,000		75,440
China Galaxy Securities Co., Ltd., Class H		200,500		176,793
CITIC Securities Co., Ltd., Class H		147,500		325,910
Coronation Fund Managers Ltd.(a)		13,369		69,792
Daewoo Securities Co., Ltd.		4,482		32,531
Daishin Securities Co., Ltd.		5,167		53,965
Daishin Securities Co., Ltd. (Preference)		1,500		10,400
Daou Data Corp.		1,207		14,725
Dubai Investments PJSC		52,361		31,078
Edelweiss Financial Services Ltd.		20,970		18,352
Egypt Kuwait Holding Co. SAE		44,496		20,468
Egyptian Financial Group-Hermes Holding Co.*		21,531		24,441
GF Securities Co., Ltd., Class H*		59,000		134,623
Guotai Junan International Holdings Ltd.(a)		130,800		43,841
Haitong Securities Co., Ltd., Class H(a)		118,000		196,231
Hanwha Investment & Securities Co., Ltd.*		36,521		110,582
Huatai Securities Co., Ltd., Class H* (b)		35,400		75,115
Hyundai Securities Co., Ltd.		8,805		54,867
IIFL Holdings Ltd.		25,254		82,981
Investec Ltd.		12,397		95,980
Jih Sun Financial Holdings Co., Ltd.		8,450		1,842
KIWOOM Securities Co., Ltd.		188		11,203
Korea Investment Holdings Co., Ltd.		1,239		50,130


	Shares		Value
Capital Markets – (continued)
Kresna Graha Investama Tbk PT*		37,900	$	6,969
Kyobo Securities Co., Ltd.		15,058		140,087
Macquarie Korea Infrastructure Fund		9,735		72,367
Masterlink Securities Corp.		767,000		209,984
Meritz Securities Co., Ltd.		15,846		50,205
Mirae Asset Securities Co., Ltd.		1,916		41,451
NH Investment & Securities Co., Ltd.		5,784		50,510
OSK Holdings Bhd		560,500		236,740
Pioneers Holding for Financial Investments SAE*		26,756		29,679
President Securities Corp.		43,000		16,265
PSG Konsult Ltd.		39,290		20,724
Religare Enterprises Ltd.*		3,905		16,425
Samsung Securities Co., Ltd.		2,906		100,488
Shinyoung Securities Co., Ltd.*		1,047		49,345
SK Securities Co., Ltd.*		22,841		23,154
Waterland Financial Holdings Co., Ltd.		59,385		14,693
Yuanta Financial Holding Co., Ltd.		683,929		225,835
Yuanta Securities Korea Co., Ltd.*		893		2,825
Zeder Investments Ltd.(a)		127,770		62,350
				3,931,941
Chemicals – 3.3%
AECI Ltd.		98,648		668,447
AK Holdings, Inc.		208		10,953
Akzo Nobel India Ltd.		2,543		51,029
Alpek SAB de CV		20,000		33,545
Asia Polymer Corp.		44,100		24,475
Asian Paints Ltd.		8,496		110,955
BASF India Ltd.		836		11,424
Batu Kawan Bhd		6,200		28,568
Bayer CropScience Ltd.		562		33,860
Berger Paints India Ltd.		9,474		36,779
Bloomage BioTechnology Corp. Ltd.		5,000		9,836
Braskem S.A. (Preference), Class A		6,800		48,495

See Accompanying Notes to the Financial Statements.


116		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Chemicals – (continued)
Castrol India Ltd.		2,653	$	15,851
China BlueChemical Ltd., Class H		1,416,000		328,572
China Lumena New Materials Corp.* ^		888,000		—
China Man-Made Fiber Corp.*		826,000		199,758
China Petrochemical Development Corp.*		105,700		26,742
China Steel Chemical Corp.		5,000		16,743
China Synthetic Rubber Corp.		29,430		21,671
Ciech S.A.*		384		7,117
Coromandel International Ltd.		53,395		180,398
D&L Industries, Inc.		85,000		16,316
Dongyue Group Ltd.^		944,000		166,720
Eastern Polymer Group PCL (NVDR)		52,200		19,876
Eternal Materials Co., Ltd.		20,600		20,598
Everlight Chemical Industrial Corp.		28,940		18,080
Formosa Chemicals & Fibre Corp.		118,000		301,467
Formosa Plastics Corp.		177,000		440,675
Formosan Rubber Group, Inc.		337,000		173,970
Fufeng Group Ltd.		899,600		281,806
Godrej Industries Ltd.		3,377		17,763
Grand Pacific Petrochemical		649,000		338,052
Green Seal Holding Ltd.		2,000		8,743
Grupa Azoty S.A.*		1,225		27,869
Gubre Fabrikalari TAS		60,383		123,605
Gujarat Fluorochemicals Ltd.		1,704		14,296
Hansol Chemical Co., Ltd.		1,330		84,161
Hanwha Chemical Corp.		2,950		65,115
Huabao International Holdings Ltd.*		65,000		25,641
Huchems Fine Chemical Corp.		1,440		25,466
Hyosung Corp.		1,501		161,377
Indorama Ventures PCL (NVDR)		61,700		50,342
Kolon Industries, Inc.		1,062		65,152
Korea PetroChemical Ind Co., Ltd.		268		55,392


	Shares		Value
Chemicals – (continued)
Kukdo Chemical Co., Ltd.		2,478	$	142,886
Kumho Petrochemical Co., Ltd.		1,507		90,335
LCY Chemical Corp.		6,000		7,144
LG Chem Ltd.		1,416		369,100
LG Chem Ltd. (Preference)		179		31,027
Lotte Chemical Corp.		531		136,315
LOTTE Fine Chemical Co., Ltd.		240		7,909
Max Ventures & Industries Ltd.* ^		566		374
Mexichem SAB de CV(a)		44,000		111,559
Monsanto India Ltd.		304		8,206
Namhae Chemical Corp.		3,200		27,720
Nan Ya Plastics Corp.		177,000		346,833
Nantex Industry Co., Ltd.		17,425		14,776
OCI Co., Ltd.*		1,037		103,300
Omnia Holdings Ltd.		5,514		54,340
Petkim Petrokimya Holding A/S*		26,544		39,042
Petronas Chemicals Group Bhd		59,000		101,341
PhosAgro OAO		816		35,803
PI Industries Ltd.		3,821		36,997
Pidilite Industries Ltd.		3,715		33,776
PTT Global Chemical PCL (NVDR)		96,800		173,204
Rallis India Ltd.		3,030		8,887
San Fang Chemical Industry Co., Ltd.		26,439		31,437
Scientex Bhd		89,900		287,662
Shinkong Synthetic Fibers Corp.		193,000		51,163
Sidi Kerir Petrochemicals Co.		5,418		7,901
Sinofert Holdings Ltd.		183,700		25,102
Sinopec Shanghai Petrochemical Co., Ltd., Class H*		236,000		116,217
SK Chemicals Co., Ltd.		827		52,767
SK Materials Co., Ltd.		655		68,294
SKC Co., Ltd.		952		23,437
Sociedad Quimica y Minera de Chile S.A. (Preference), Class B		4,985		106,553

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			117

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Chemicals – (continued)
Solar Applied Materials Technology Co.		242,000	$	127,179
Solar Industries India Ltd.		374		19,133
Soulbrain Co., Ltd.		7,906		301,835
Swancor Ind Co., Ltd.		7,338		29,122
Synthos S.A.		4,438		4,729
Taekwang Industrial Co., Ltd.		18		15,687
Taiwan Fertilizer Co., Ltd.		9,000		12,236
TSRC Corp.		28,900		25,448
Unid Co., Ltd.		3,776		155,593
Unipetrol A/S*		884		7,150
UPC Technology Corp.		48,000		12,977
UPL Ltd.		13,884		112,592
Uralkali PJSC*		26,824		67,762
USI Corp.		590,000		234,149
Victory New Materials Ltd. Co.		24,200		57,549
Yingde Gases Group Co., Ltd.(a)		826,000		307,732
Yung Chi Paint & Varnish Manufacturing Co., Ltd.		34,000		75,795
				8,585,775
Commercial Services & Supplies – 0.2%
China Everbright International Ltd.(a)		77,000		86,557
Cleanaway Co., Ltd.		7,000		37,981
KEPCO Plant Service & Engineering Co., Ltd.		1,038		68,781
S-1 Corp.		791		64,632
Taiwan Secom Co., Ltd.		11,165		31,432
Taiwan Shin Kong Security Co., Ltd.		24,240		30,100
Valid Solucoes e Servicos de Seguranca em Meios de Pagamento e Identificacao S.A.		6,278		62,875
Yestar International Holdings Co., Ltd.		60,000		24,055
				406,413


	Shares		Value
Communications Equipment – 0.3%
Accton Technology Corp.		391,000	$	366,718
Advanced Ceramic X Corp.		4,000		21,083
Alpha Networks, Inc.		1,300		653
BYD Electronic International Co., Ltd.*		43,000		24,667
China All Access Holdings Ltd.		96,000		30,815
Humax Co., Ltd.		11,918		138,594
Senao Networks, Inc.		2,000		10,635
Wistron NeWeb Corp.		8,018		20,882
Zinwell Corp.		6,000		8,771
ZTE Corp., Class H(a)		30,480		47,623
				670,441
Construction & Engineering – 1.9%
Arabtec Holding PJSC*		93,066		41,301
BES Engineering Corp.		1,062,000		198,222
Budimex S.A.		288		14,702
CH Karnchang PCL (NVDR)		26,537		19,183
China Communications Construction Co., Ltd., Class H		236,000		284,763
China Machinery Engineering Corp., Class H		633,200		431,809
China Railway Construction Corp. Ltd., Class H(a)		100,500		128,521
China Railway Group Ltd., Class H		203,000		161,726
China Singyes Solar Technologies Holdings Ltd.*		354,000		130,516
China State Construction International Holdings Ltd.		60,000		93,745
Concord New Energy Group Ltd.		480,000		25,989
Continental Holdings Corp.		433,850		149,311
CTCI Corp.		18,000		23,468
Daelim Industrial Co., Ltd.		1,242		98,867
Daewoo Engineering & Construction Co., Ltd.*		11,011		61,365
Dialog Group Bhd		154,888		63,042
Doosan Engineering & Construction Co., Ltd.* ^		25,783		140,297
e Tec E&C Ltd.		24		2,207

See Accompanying Notes to the Financial Statements.


118		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Construction & Engineering – (continued)
Engineers India Ltd.		7,896	$	21,344
Gamuda Bhd		47,200		57,391
GMR Infrastructure Ltd.*		102,144		19,403
Grana y Montero SAA		366,567		513,630
GS Engineering & Construction Corp.*		4,706		128,038
Hyundai Development Co-Engineering & Construction		2,720		120,555
Hyundai Engineering & Construction Co., Ltd.		3,523		124,298
IJM Corp. Bhd		76,700		67,737
Impulsora del Desarrollo y el Empleo en America Latina SAB de CV*		42,849		59,286
IRB Infrastructure Developers Ltd.		3,792		12,214
Italian-Thai Development PCL (NVDR)*		135,443		27,531
Kumho Industrial Co., Ltd.*		3,303		34,207
Kuo Toong International Co., Ltd.		19,045		15,382
Larsen & Toubro Ltd.		4,603		87,054
Larsen & Toubro Ltd. (GDR)		3,310		63,055
Malaysian Resources Corp. Bhd		70,600		21,868
NCC Ltd./India		56,901		66,998
Orascom Construction Ltd.*		4,443		23,903
Rich Development Co., Ltd.		377,467		106,032
Sadbhav Engineering Ltd.		7,246		28,840
Samsung Engineering Co., Ltd.*		14,416		160,051
Sinopec Engineering Group Co., Ltd., Class H		40,974		38,136
Sino-Thai Engineering & Construction PCL (NVDR)		41,571		27,254
Taeyoung Engineering & Construction Co., Ltd.*		10,620		59,839
Tekfen Holding A/S		170,274		364,398
UEM Edgenta Bhd		47,200		45,672
United Integrated Services Co., Ltd.		177,000		249,698
Voltas Ltd.		1,488		6,584


	Shares		Value
Construction & Engineering – (continued)
Waskita Karya Persero Tbk PT		432,693	$	76,938
Wijaya Karya Persero Tbk PT*		88,000		17,683
Wilson Bayly Holmes-Ovcon Ltd.		35,577		304,822
				5,018,875
Construction Materials – 1.9%
ACC Ltd.		1,496		32,549
Akcansa Cimento A/S		28,380		146,861
Ambuja Cements Ltd.		18,467		61,529
Anhui Conch Cement Co., Ltd., Class H(a)		88,500		234,450
Asia Cement China Holdings Corp.		429,000		93,463
Asia Cement Co., Ltd.		1,024		97,061
Asia Cement Corp.		64,020		57,067
BBMG Corp., Class H		914,500		671,976
Cahya Mata Sarawak Bhd		15,700		15,433
Cementos Argos S.A.		22,900		92,968
Cementos Argos S.A. (Preference)		18,979		70,928
Cementos Pacasmayo SAA		188,818		343,710
Cemex SAB de CV*		460,200		343,083
Century Textiles & Industries Ltd.		2,602		25,045
CHC Resources Corp.		6,000		11,217
Chia Hsin Cement Corp.		324,000		92,118
China National Building Material Co., Ltd., Class H		128,000		66,333
China Resources Cement Holdings Ltd.		40,170		13,257
China Shanshui Cement Group Ltd.* ^		541,000		438,675
Cimsa Cimento Sanayi ve Ticaret A/S		36,108		210,500
Eugene Corp.		4,554		22,462
Goldsun Building Materials Co., Ltd.		188,000		48,496
Grupo Argos S.A.		12,154		80,106
Grupo Argos S.A. (Preference)		5,305		32,547
Hanil Cement Co., Ltd.		160		16,781

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			119

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Construction Materials – (continued)
Holcim Indonesia Tbk PT		358,500	$	28,135
Indocement Tunggal Prakarsa Tbk PT		27,300		40,832
JK Lakshmi Cement Ltd.		657		3,466
Lafarge Malaysia Bhd		6,300		14,127
POSCO Chemtech Co., Ltd.		96		1,028
PPC Ltd.(a)		370,402		391,801
Prism Cement Ltd.*		10,157		13,161
Qatar National Cement Co. QSC		746		17,995
Qatari Investors Group QSC		1,355		19,693
The Ramco Cements Ltd.		4,924		33,417
Semen Indonesia Persero Tbk PT*		127,400		95,637
Shree Cement Ltd.		296		56,647
The Siam Cement PCL (NVDR)		8,050		112,465
Siam City Cement PCL (NVDR)		3,700		34,320
Ssangyong Cement Industrial Co., Ltd.*		585		10,782
Taiwan Cement Corp.		118,000		120,367
TCC International Holdings Ltd.		1,298,000		261,032
Tipco Asphalt PCL (NVDR)		6,500		4,578
Tongyang Cement & Energy Corp.*		1,723		7,531
Tongyang, Inc.		20,591		63,613
TPI Polene PCL (NVDR)		377,200		26,997
UltraTech Cement Ltd.		2,006		95,611
Union Andina de Cementos SAA		381		332
Universal Cement Corp.		46,389		29,700
West China Cement Ltd.		46,008		9,727
Wijaya Karya Beton Tbk PT		294,300		21,535
				4,833,144
Consumer Finance – 0.6%
AEON Credit Service M Bhd		42,800		144,401
AEON Thana Sinsap Thailand PCL (NVDR)		56,900		154,752
Bajaj Finance Ltd.		904		93,073
Credit China Holdings Ltd.		160,000		65,797


	Shares		Value
Consumer Finance – (continued)
Credito Real SAB de CV SOFOM ER		15,700	$	34,783
Gentera SAB de CV		35,400		70,720
KB Capital Co., Ltd.		7,788		162,677
KRUK S.A.		768		38,302
Krungthai Card PCL (NVDR)		3,800		10,036
Mahindra & Mahindra Financial Services Ltd.		6,327		28,616
Muthoot Finance Ltd.		76,523		234,311
Samsung Card Co., Ltd.		2,094		71,307
Shriram City Union Finance Ltd.		224		5,562
SKS Microfinance Ltd.*		4,368		39,762
Srisawad Power 1979 PCL (NVDR)		1,168		1,413
Sundaram Finance Ltd.		1,310		25,263
Taiwan Acceptance Corp.		11,000		25,033
Unifin Financiera SAB de CV SOFOM ENR		100,300		296,990
				1,502,798
Containers & Packaging – 0.5%
Beijing Enterprises Clean Energy Group Ltd.*		700,002		42,412
Cheng Loong Corp.		708,000		253,539
CPMC Holdings Ltd.		354,000		159,266
Great China Metal Industry		134,000		111,137
Greatview Aseptic Packaging Co., Ltd.		129,000		65,521
Klabin S.A.		22,200		113,097
Klabin S.A. (Preference)		95,200		77,798
Lock & Lock Co., Ltd.		2,071		24,175
Nampak Ltd.		47,835		82,172
Samkwang Glass		123		9,608
Taiwan Hon Chuan Enterprise Co., Ltd.		236,000		372,443
				1,311,168
Distributors – 0.2%
Dah Chong Hong Holdings Ltd.		649,000		269,399
Dogus Otomotiv Servis ve Ticaret A/S		41,744		180,463
Imperial Holdings Ltd.		8,174		85,903

See Accompanying Notes to the Financial Statements.


120		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Distributors – (continued)
Inter Cars S.A.		144	$	8,969
Test Rite International Co., Ltd.		23,000		13,941
				558,675
Diversified Consumer Services – 0.2%
Curro Holdings Ltd.*		14,890		41,497
Daekyo Co., Ltd.		4,590		37,988
Estacio Participacoes S.A.		13,800		47,829
Fu Shou Yuan International Group Ltd.		11,000		7,728
Kroton Educacional S.A.		88,500		328,785
Lung Yen Life Service Corp.		4,000		6,759
				470,586
Diversified Financial Services – 1.6%
African Bank Investments Ltd.* ^		61,875		1,353
Al Waha Capital PJSC		762,162		425,389
Alexander Forbes Group Holdings Ltd.(a)		129,580		65,609
Ayala Corp.		7,670		126,122
BM&FBovespa S.A. – Bolsa de Valores Mercadorias e Futuros		53,100		263,438
Bolsa Mexicana de Valores SAB de CV		36,400		60,712
BTG Pactual Group		15,600		88,063
Bursa Malaysia Bhd		3,200		6,889
Chailease Holding Co., Ltd.		29,744		49,984
Corp. Financiera Colombiana S.A.		1,079		14,594
Credit Analysis & Research Ltd.		1,685		25,683
Dubai Financial Market PJSC		67,052		27,931
Far East Horizon Ltd.		95,988		76,472
FirstRand Ltd.(a)		105,787		341,290
Fubon Financial Holding Co., Ltd.		472,000		574,396
Grupo de Inversiones Suramericana S.A.		11,297		152,480
Grupo de Inversiones Suramericana S.A. (Preference)		1,425		18,984


	Shares		Value
Diversified Financial Services – (continued)
GT Capital Holdings, Inc.		3,425	$	99,855
Haci Omer Sabanci Holding A/S		78,117		282,354
Hankook Tire Worldwide Co., Ltd.		1,342		26,736
IFCI Ltd.		535,602		205,908
Inversiones La Construccion S.A.		24,898		293,669
JSE Ltd.		2,112		24,576
Meritz Financial Group, Inc.		2,333		25,902
Metro Pacific Investments Corp.		585,100		72,377
Moscow Exchange MICEX-RTS PJSC		45,793		72,319
NICE Holdings Co., Ltd.		720		12,828
NICE Information Service Co., Ltd.		3,576		27,650
Power Finance Corp. Ltd.		16,434		44,436
PSG Group Ltd.		4,092		57,351
Reliance Capital Ltd.		5,803		35,393
Remgro Ltd.		13,629		245,655
RMB Holdings Ltd.		21,535		88,216
Rural Electrification Corp. Ltd.		27,098		72,882
Warsaw Stock Exchange		5,026		49,631
				4,057,127
Diversified Telecommunication Services – 1.5%
Alibaba Health Information Technology Ltd.*		40,000		27,072
APT Satellite Holdings Ltd.		45,750		36,448
Asia Pacific Telecom Co., Ltd.*		101,899		32,699
Asia Satellite Telecommunications Holdings Ltd.		88,500		125,040
Axtel SAB de CV*		71,226		31,727
China Communications Services Corp. Ltd., Class H		1,888,000		893,230
China Telecom Corp. Ltd., Class H		826,000		411,019
China Unicom Hong Kong Ltd.		178,000		210,189
Chunghwa Telecom Co., Ltd.		124,000		419,062

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			121

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Diversified Telecommunication Services – (continued)
CITIC Telecom International Holdings Ltd.		48,000	$	19,987
Jasmine International PCL (NVDR)		82,400		10,285
KT Corp.		6,249		167,550
LG Uplus Corp.		10,237		100,627
Magyar Telekom Telecommunications PLC*		7,439		12,932
Maroc Telecom		8,034		110,869
Netia S.A.		47,696		63,057
O2 Czech Republic A/S		3,092		31,424
Oi S.A.*		269,101		70,184
Oi S.A. (Preference)*		163,604		51,203
Ooredoo QSC		4,189		105,534
Orange Polska S.A.		14,950		24,344
Rostelecom PJSC		60,284		91,802
Rostelecom PJSC (Preference)		29,982		33,258
Tata Communications Ltd.		5,003		31,166
Telefonica Brasil S.A. (Preference)		15,900		195,548
Telekom Malaysia Bhd		53,100		90,392
Telekomunikasi Indonesia Persero Tbk PT*		1,694,500		456,132
Telkom S.A. SOC Ltd.		14,118		56,429
Thaicom PCL (NVDR)		21,800		17,943
TIME dotCom Bhd		9,600		18,136
True Corp. PCL (NVDR)		279,141		59,536
Turk Telekomunikasyon A/S		9,573		23,159
				4,027,983
Electric Utilities – 1.5%
Centrais Eletricas Brasileiras S.A.*		19,400		43,738
Centrais Eletricas Brasileiras S.A. (Preference), Class B		7,400		27,599
CESC Ltd.		50,091		406,664
CEZ A/S(a)		9,499		185,595
Cia de Transmissao de Energia Eletrica Paulista (Preference)		4,339		71,369
Cia Energetica de Minas Gerais		1,577		3,249


	Shares		Value
Electric Utilities – (continued)
Cia Energetica de Minas Gerais (Preference)		45,571	$	90,197
Cia Paranaense de Energia		200		1,077
Cia Paranaense de Energia (Preference)		2,500		20,524
CPFL Energia S.A.*		17,700		102,328
E.CL S.A.		11,616		20,186
EDP – Energias do Brasil S.A.		11,890		43,724
Enea S.A.		7,827		24,179
Energa S.A.		14,299		46,568
Enersis S.A.		656,847		111,647
Equatorial Energia S.A.		5,900		72,288
First Philippine Holdings Corp.		177,590		252,253
Inter RAO UES PJSC		2,009,315		55,838
Interconexion Electrica S.A. ESP		29,282		89,312
Isagen S.A. ESP*		11,611		16,710
Korea District Heating Corp.		2,065		127,952
Korea Electric Power Corp.		14,750		800,026
Light S.A.		59,000		177,301
Luz del Sur SAA		7,464		24,662
Manila Electric Co.		7,080		51,793
PGE Polska Grupa Energetyczna S.A.		38,994		134,547
Reliance Infrastructure Ltd.		9,232		74,957
Rosseti PJSC*		22,208,544		214,043
RusHydro PJSC		8,359,136		89,197
Tata Power Co., Ltd.		48,361		51,401
Tauron Polska Energia S.A.		36,838		28,546
Tenaga Nasional Bhd		82,600		303,631
Torrent Power Ltd.		17,541		62,080
Transmissora Alianca de Energia Eletrica S.A.		1,100		6,407
				3,831,588
Electrical Equipment – 0.5%
ABB India Ltd.		1,456		28,477
AcBel Polytech, Inc.		3,000		2,214
Alstom T&D India Ltd.		2,883		16,547
Amara Raja Batteries Ltd.		2,733		39,384
Bharat Heavy Electricals Ltd.		31,390		59,344
Bizlink Holding, Inc.		9,026		51,492
Boer Power Holdings Ltd.		4,000		2,248

See Accompanying Notes to the Financial Statements.


122		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Electrical Equipment – (continued)
Chicony Power Technology Co., Ltd.		118,000	$	131,892
China High Speed Transmission Equipment Group Co., Ltd.		19,000		14,770
Crompton Greaves Ltd.*		12,473		10,841
CS Wind Corp.		2,542		46,070
Doosan Heavy Industries & Construction Co., Ltd.		2,184		50,028
ElSewedy Electric Co.		3,080		16,142
Havells India Ltd.		15,070		75,475
Jiangnan Group Ltd.		1,416,000		239,128
Korea Electric Terminal Co., Ltd.		144		11,299
Kung Long Batteries Industrial Co., Ltd.		5,000		20,696
LS Corp.		2,078		92,647
LS Industrial Systems Co., Ltd.		92		4,223
Schneider Electric Infrastructure Ltd.*		2,601		5,507
Shanghai Electric Group Co., Ltd., Class H(a)		134,000		56,314
Shihlin Electric & Engineering Corp.		26,000		31,923
Suzlon Energy Ltd.*		39,024		8,796
Tech Pro Technology Development Ltd.*		248,000		86,959
Teco Electric and Machinery Co., Ltd.		59,000		46,647
Voltronic Power Technology Corp.		1,260		19,885
Walsin Lihwa Corp.*		299,000		78,335
Welling Holding Ltd.		620,000		103,903
Xinjiang Goldwind Science & Technology Co., Ltd., Class H		35,400		58,504
				1,409,690
Electronic Equipment, Instruments & Components – 3.4%
AAC Technologies Holdings, Inc.		20,000		139,097
Asia Optical Co., Inc.*		32,000		23,812
AU Optronics Corp.		473,000		137,854


	Shares		Value
Electronic Equipment, Instruments & Components – (continued)
Aurora Corp.		7,000	$	12,110
Boardtek Electronics Corp.		12,000		17,263
Cal-Comp Electronics Thailand PCL (NVDR)		906,700		78,392
Career Technology MFG. Co., Ltd.		236,000		134,636
Cheng Uei Precision Industry Co., Ltd.		11,000		14,154
Chimei Materials Technology Corp.		295,000		160,520
China Railway Signal & Communication Corp. Ltd., Class H* (b)		46,008		27,342
Chin-Poon Industrial Co., Ltd.		12,000		24,333
Chroma ATE, Inc.		13,000		28,859
Compeq Manufacturing Co., Ltd.		76,000		42,179
Coretronic Corp.		23,000		20,930
CrucialTec Co., Ltd.*		2,019		25,605
Daeduck Electronics Co.		24,898		166,074
DataTec Ltd.		147,146		466,422
Delta Electronics Thailand PCL (NVDR)		25,400		52,356
Delta Electronics, Inc.		64,728		301,032
Digital China Holdings Ltd.		65,000		44,997
Dynapack International Technology Corp.		88,000		132,465
E Ink Holdings, Inc.		48,000		22,323
Elite Material Co., Ltd.		8,000		14,287
Firich Enterprises Co., Ltd.		8,333		20,307
FLEXium Interconnect, Inc.		20,999		48,440
Flytech Technology Co., Ltd.		9,235		31,067
Hana Microelectronics PCL (NVDR)		54,700		52,069
HannStar Display Corp.*		2,065,000		240,094
Hollysys Automation Technologies Ltd.*		2,100		40,257
Hon Hai Precision Industry Co., Ltd.		767,000		1,833,495
Inari Amertron Bhd		43,125		30,137
Innolux Corp.		463,489		143,704
Ju Teng International Holdings Ltd.		708,000		318,532

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			123

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Electronic Equipment, Instruments & Components – (continued)
KCE Electronics PCL (NVDR)		22,300	$	50,116
KH Vatec Co., Ltd.		11,269		172,586
Kingboard Chemical Holdings Ltd.		24,800		47,828
Kingboard Laminates Holdings Ltd.		48,000		24,627
Largan Precision Co., Ltd.		3,000		211,143
LG Display Co., Ltd.		14,144		296,684
LG Innotek Co., Ltd.		999		64,618
Lotes Co., Ltd.		40,000		105,789
Merry Electronics Co., Ltd.		5,300		9,892
MIN AIK Technology Co., Ltd.		20,000		31,129
Nan Ya Printed Circuit Board Corp.		11,000		10,368
Partron Co., Ltd.		34,987		342,378
PAX Global Technology Ltd.(a)		33,000		28,545
Posiflex Technologies, Inc.		6,241		31,347
Redington India Ltd.		14,310		23,429
Samart Corp. PCL (NVDR)		29,300		13,421
Samsung Electro-Mechanics Co., Ltd.		1,829		83,632
Samsung SDI Co., Ltd.		1,770		177,093
SFA Engineering Corp.		909		45,474
Simplo Technology Co., Ltd.		9,000		30,416
Sinbon Electronics Co., Ltd.		1,159		2,415
Sunny Optical Technology Group Co., Ltd.(a)		16,000		49,502
Synnex Technology International Corp.		49,000		48,692
Taiflex Scientific Co., Ltd.		130,000		140,871
Taiwan PCB Techvest Co., Ltd.		7,662		7,424
Test Research, Inc.		20,280		28,672
Tong Hsing Electronic Industries Ltd.		118,000		339,150
Tongda Group Holdings Ltd.		330,000		68,066
TPK Holding Co., Ltd.		10,000		21,021
Tripod Technology Corp.		18,000		32,983
TXC Corp.		236,000		300,735


	Shares		Value
Electronic Equipment, Instruments & Components – (continued)
Wah Lee Industrial Corp.		177,000	$	240,368
Walsin Technology Corp.		295,000		242,381
Wasion Group Holdings Ltd.(a)		21,100		11,751
Wintek Corp.* ^		64,000		3,631
WPG Holdings Ltd.		49,000		52,414
WT Microelectronics Co., Ltd.		354,000		426,407
Yageo Corp.		23,256		37,927
Zhen Ding Technology Holding Ltd.		26,150		55,052
				8,755,121
Energy Equipment & Services – 0.2%
Bumi Armada Bhd		132,900		26,876
China Oilfield Services Ltd., Class H(a)		124,000		107,900
Gulf International Services QSC		2,297		21,929
SapuraKencana Petroleum Bhd		59,000		24,920
Sinopec Oilfield Service Corp., Class H*		250,000		54,788
TMK PAO		198,299		153,133
UMW Oil & Gas Corp. Bhd*		87,700		20,990
Wison Engineering Services Co., Ltd.*		934,014		115,590
				526,126
Food & Staples Retailing – 1.5%
7-Eleven Malaysia Holdings Bhd		95,100		33,838
Al Meera Consumer Goods Co. QSC		314		17,874
Almacenes Exito S.A.		13,843		77,747
BGF retail Co., Ltd.		417		68,073
Big C Supercenter PCL (NVDR)		14,700		105,210
BIM Birlesik Magazalar A/S		9,181		202,394
Cencosud S.A.		46,636		125,386
Cia Brasileira de Distribuicao (Preference)		6,602		96,195
CJ Freshway Corp.		708		33,679
Clicks Group Ltd.		2,592		19,004

See Accompanying Notes to the Financial Statements.


124		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Food & Staples Retailing – (continued)
Cosco Capital, Inc.		2,206,600	$	373,669
CP ALL PCL (NVDR)		127,420		166,890
DIXY Group PJSC*		46,079		237,937
Dongsuh Cos., Inc.		1,966		55,646
E-MART, Inc.		649		104,521
Eurocash S.A.		1,939		27,665
Grupo Comercial Chedraui S.A. de CV		9,800		27,897
GS Retail Co., Ltd.		662		31,084
Hyundai Greenfood Co., Ltd.		2,135		37,382
Magnit PJSC		1,829		254,546
Massmart Holdings Ltd.		4,015		34,576
Matahari Putra Prima Tbk PT		95,800		10,715
Pick’n Pay Holdings Ltd.		201,603		430,054
Pick’n Pay Stores Ltd.		1,584		8,251
President Chain Store Corp.		15,000		106,269
Puregold Price Club, Inc.		47,000		40,296
Raia Drogasil S.A.		6,400		102,970
Robinsons Retail Holdings, Inc.		20,030		32,894
Shoprite Holdings Ltd.		10,443		126,097
The SPAR Group Ltd.		5,092		76,394
Sumber Alfaria Trijaya Tbk PT		642,200		29,218
Sun Art Retail Group Ltd.(a)		89,500		67,149
Taiwan TEA Corp.		508,000		233,895
Wal-Mart de Mexico SAB de CV		171,100		425,022
				3,820,437
Food Products – 2.7%
Agthia Group PJSC		13,259		28,157
Alicorp SAA		36,489		69,548
Astra Agro Lestari Tbk PT*		14,000		17,091
Astral Foods Ltd.		28,674		261,692
AVI Ltd.		16,058		99,967
Binggrae Co., Ltd.		63		3,771
Biostime International Holdings Ltd.		2,500		6,961
BRF S.A.		23,600		334,632
Britannia Industries Ltd.		1,476		63,700
Charoen Pokphand Foods PCL (NVDR)		106,800		72,770


	Shares		Value
Food Products – (continued)
Charoen Pokphand Indonesia Tbk PT		339,500	$	95,636
China Agri-Industries Holdings Ltd.*		59,705		20,550
China Foods Ltd.*		10,789		3,978
China Huishan Dairy Holdings Co., Ltd.(a)		219,000		81,872
China Huiyuan Juice Group Ltd.*		24,000		10,643
China Mengniu Dairy Co., Ltd.(a)		80,000		135,925
China Modern Dairy Holdings Ltd.		66,000		12,167
China Shengmu Organic Milk Ltd.* (b)		73,000		17,127
CJ CheilJedang Corp.		236		78,708
Cosumar		14,278		282,541
Daesang Corp.		945		23,720
Daesang Holdings Co., Ltd.		1,814		21,891
Dharma Satya Nusantara Tbk PT*		468,000		18,098
Dongwon F&B Co., Ltd.		79		20,384
Dongwon Industries Co., Ltd.		73		18,612
Dutch Lady Milk Industries Bhd		2,600		35,275
Easy Bio, Inc.		27,435		150,250
Genting Plantations Bhd		12,700		34,786
GlaxoSmithKline Consumer Healthcare Ltd.		270		24,007
Great Wall Enterprise Co., Ltd.		5,800		3,938
Gruma SAB de CV, Class B		8,005		117,454
Grupo Bimbo SAB de CV		41,300		126,461
Grupo Herdez SAB de CV		13,014		28,931
Grupo Industrial Maseca SAB de CV, Class B		4,800		6,364
Grupo Lala SAB de CV		9,600		25,786
Grupo Nutresa S.A.		9,735		88,736
Ichitan Group PCL (NVDR)		72,000		25,147
IJM Plantations Bhd		26,800		23,908
Illovo Sugar Ltd.		169,861		291,432
Indofood CBP Sukses Makmur Tbk PT		27,000		31,273

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			125

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Food Products – (continued)
Indofood Sukses Makmur Tbk PT		185,500	$	100,219
Industrias Bachoco SAB de CV		7,300		30,727
IOI Corp. Bhd		115,000		130,116
JBS S.A.		29,500		77,537
Juhayna Food Industries		10,936		8,867
Kaset Thai International Sugar Corp. PCL (NVDR)		10,400		2,099
Kernel Holding S.A.		1,680		22,628
Khon Kaen Sugar Industry PCL (NVDR)		273,504		31,790
Kuala Lumpur Kepong Bhd		16,100		98,582
Kulim Malaysia Bhd*		9,600		9,731
Lien Hwa Industrial Corp.		48,000		29,914
Lotte Confectionery Co., Ltd.^		33		72,349
Lotte Food Co., Ltd.		83		59,733
M Dias Branco S.A.		600		13,545
Maeil Dairy Industry Co., Ltd.		546		22,283
Marfrig Global Foods S.A.*		14,400		26,790
Mayora Indah Tbk PT		33,017		88,251
Namchow Chemical Industrial Co., Ltd.		17,000		31,572
Namyang Dairy Products Co., Ltd.		35		22,823
Nestle India Ltd.		649		56,020
Nestle Malaysia Bhd		2,200		42,226
Nong Shim Holdings Co., Ltd.		48		6,214
NongShim Co., Ltd.		178		58,349
Oceana Group Ltd.		7,100		60,257
Orion Corp.		118		96,314
Ottogi Corp.		66		47,325
Perusahaan Perkebunan London Sumatra Indonesia Tbk PT		62,400		7,263
Pioneer Foods Group Ltd.		1,536		18,012
PPB Group Bhd		10,300		42,661
Pulmuone Co., Ltd.		127		20,007
QL Resources Bhd		38,100		42,620
RCL Foods Ltd.		23,245		22,949
Sajo Industries Co., Ltd.*		1,914		96,926
Salim Ivomas Pratama Tbk PT		1,909,300		70,361


	Shares		Value
Food Products – (continued)
Samlip General Foods Co., Ltd.		241	$	45,053
Samyang Corp.		2,722		232,209
Samyang Holdings Corp.		456		65,234
Sao Martinho S.A.		1,000		12,962
Sawit Sumbermas Sarana Tbk PT*		15,300		2,152
Shenguan Holdings Group Ltd.		836,000		86,217
Standard Foods Corp.		11,689		28,377
Tata Global Beverages Ltd.		7,341		13,286
Tenwow International Holdings Ltd.		531,000		154,703
Thai Union Group PCL (NVDR)		112,100		66,432
Thai Vegetable Oil PCL (NVDR)		287,970		212,288
Tiger Brands Ltd.		4,897		121,607
Tingyi Cayman Islands Holding Corp.(a)		66,000		77,170
Tongaat Hulett Ltd.		82,836		687,596
TSH Resources Bhd		24,000		12,472
Ulker Biskuvi Sanayi A/S		10,405		82,963
Uni-President China Holdings Ltd.(a)		66,000		61,600
Uni-President Enterprises Corp.		177,000		319,394
United Plantations Bhd		1,200		8,232
Universal Robina Corp.		23,530		104,583
Want Want China Holdings Ltd.(a)		236,000		181,932
Wei Chuan Foods Corp.*		154,000		95,256
Yashili International Holdings Ltd.		34,000		8,240
				7,060,907
Gas Utilities – 0.7%
China Gas Holdings Ltd.(a)		75,640		109,406
China Resources Gas Group Ltd.		32,000		90,754
China Tian Lun Gas Holdings Ltd.*		34,500		25,795
Cia de Gas de Sao Paulo – COMGAS (Preference), Class A		2,100		24,038

See Accompanying Notes to the Financial Statements.


126		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Gas Utilities – (continued)
E1 Corp.		2,124	$	116,695
Empresa de Energia de Bogota S.A. ESP		129,902		84,252
ENN Energy Holdings Ltd.		26,000		127,198
GAIL India Ltd.		8,732		47,438
Gas Malaysia Bhd		20,300		12,004
Gasco S.A.		44,073		342,999
Great Taipei Gas Co., Ltd.		31,000		22,347
Gujarat State Petronet Ltd.		26,679		55,385
Indraprastha Gas Ltd.		4,015		34,702
Infraestructura Energetica Nova SAB de CV		6,400		25,119
Korea Gas Corp.		2,419		88,000
KyungDong City Gas Co., Ltd.		1,593		111,289
Perusahaan Gas Negara Persero Tbk		510,200		101,359
Petronas Gas Bhd		19,400		109,155
Samchully Co., Ltd.		2,183		205,962
Towngas China Co., Ltd.		20,000		10,390
				1,744,287
Health Care Equipment & Supplies – 0.1%
DIO Corp.*		1,162		55,581
Ginko International Co., Ltd.		2,000		21,703
Hartalega Holdings Bhd		9,400		10,323
InBody Co., Ltd.		1,220		47,862
i-SENS, Inc.*		942		29,639
Kossan Rubber Industries		4,800		7,372
Lifetech Scientific Corp.*		196,000		33,352
Microport Scientific Corp.*		11,000		5,729
Osstem Implant Co., Ltd.*		96		6,033
Pihsiang Machinery Manufacturing Co., Ltd.		5,000		10,898
Shandong Weigao Group Medical Polymer Co., Ltd., Class H		64,000		38,529
St. Shine Optical Co., Ltd.		1,000		18,727
Suheung Co., Ltd.		550		22,181
Top Glove Corp. Bhd		9,600		12,189
Value Added Technologies Co., Ltd.		510		17,233


	Shares		Value
Health Care Equipment & Supplies – (continued)
Vieworks Co., Ltd.		760	$	33,618
				370,969
Health Care Providers & Services – 0.6%
Apollo Hospitals Enterprise Ltd.		2,124		42,017
Bangkok Chain Hospital PCL (NVDR)		110,900		32,702
Bangkok Dusit Medical Services PCL (NVDR)		162,900		110,994
Banmedica S.A.		33,873		57,442
Bumrungrad Hospital PCL (NVDR)		15,200		88,337
Chabiotech Co., Ltd.*		384		4,769
China Pioneer Pharma Holdings Ltd.		46,000		10,911
Chularat Hospital PCL (NVDR)		157,300		12,880
Fortis Healthcare Ltd.*		9,651		25,484
IHH Healthcare Bhd		64,900		108,817
KPJ Healthcare Bhd		25,006		27,077
Life Healthcare Group Holdings Ltd.		34,993		92,265
Medicare Group		619		15,765
Medipost Co., Ltd.*		336		25,125
Mitra Keluarga Karyasehat Tbk PT		98,000		19,729
Netcare Ltd.		40,120		102,586
Odontoprev S.A.		12,500		38,361
Phoenix Healthcare Group Co., Ltd.^		7,000		10,630
Qualicorp S.A.		5,294		22,935
Shanghai Pharmaceuticals Holding Co., Ltd., Class H		36,000		76,574
Siloam International Hospitals Tbk PT		22,800		14,609
Sinopharm Group Co., Ltd., Class H		35,200		151,106
Universal Health International Group Holding Ltd.		738,000		66,596
Universal Medical Financial & Technical Advisory Services Co., Ltd.* (b)		28,026		21,063

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			127

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Health Care Providers & Services – (continued)
Vibhavadi Medical Center PCL (NVDR)		4,034,200	$	330,312
				1,509,086
Hotels, Restaurants & Leisure – 0.5%
Ajisen China Holdings Ltd.		48,000		20,420
Alsea SAB de CV		17,800		68,470
The Ambassador Hotel		24,000		19,124
AmRest Holdings SE*		240		14,043
Bloomberry Resorts Corp.*		79,300		7,205
Central Plaza Hotel PCL*		1,600		1,764
Central Plaza Hotel PCL (NVDR)*		12,500		13,778
China LotSynergy Holdings Ltd.		1,180,000		48,677
China Travel International Investment Hong Kong Ltd.(a)		172,200		50,391
Cox & Kings Ltd.		5,559		15,668
Famous Brands Ltd.		1,152		9,220
Formosa International Hotels Corp.		1,311		7,947
Genting Bhd		64,900		146,862
Genting Malaysia Bhd		78,800		90,167
Grand Korea Leisure Co., Ltd.		1,040		26,333
Haichang Ocean Park Holdings Ltd.* (b)		134,000		29,021
Hana Tour Service, Inc.		489		38,969
Imperial Pacific International Holdings Ltd.*		1,250,000		24,332
Indian Hotels Co., Ltd.*		30,874		48,966
Jinmao Investments and Jinmao China Investments Holdings Ltd.		41,500		23,486
Jollibee Foods Corp.		21,900		107,240
Jubilant Foodworks Ltd.		144		2,512
Kangwon Land, Inc.		3,186		119,258
Lion Travel Service Co., Ltd.		5,000		14,836
Magnum Bhd		16,900		10,512
Mahindra Holidays & Resorts India Ltd.		4,236		25,465
Minor International PCL (NVDR)		89,050		94,965


	Shares		Value
Hotels, Restaurants & Leisure – (continued)
MK Restaurants Group PCL (NVDR)		1,500	$	2,222
Modetour Network, Inc.		741		18,892
Orbis S.A.		2,013		32,041
Paradise Co., Ltd.		1,338		20,374
Philweb Corp.		51,400		25,762
Shinsegae Food Co., Ltd.		120		14,639
Sun International Ltd.		2,112		11,468
Thomas Cook India Ltd.		3,534		9,710
Travellers International Hotel Group, Inc.		190,000		13,697
Tsogo Sun Holdings Ltd.		16,629		31,216
Wowprime Corp.		2,133		8,002
Xiabuxiabu Catering Management China Holdings Co., Ltd.(b)		206,500		122,454
				1,390,108
Household Durables – 1.7%
Ability Enterprise Co., Ltd.*		177,000		102,349
AmTRAN Technology Co., Ltd.		590,000		364,943
Arcelik A/S		17,385		116,904
Coway Co., Ltd.		1,593		137,853
Crompton Greaves Consumer Electricals Ltd.* ^		12,473		19,237
Cuckoo Electronics Co., Ltd.		79		14,456
Cyrela Brazil Realty S.A. Empreendimentos e Participacoes		206,500		620,553
Ez Tec Empreendimentos e Participacoes S.A.		53,100		255,436
Haier Electronics Group Co., Ltd.		59,000		99,636
Hanssem Co., Ltd.		540		90,521
Hyundai Livart Furniture Co., Ltd.		1,506		43,816
Kinpo Electronics, Inc.*		944,000		319,028
LG Electronics, Inc.		3,422		174,794
LG Electronics, Inc. (Preference)		690		18,864
MRV Engenharia e Participacoes S.A.		224,200		780,295

See Accompanying Notes to the Financial Statements.


128		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Household Durables – (continued)
Oriental Weavers		11,424	$	8,491
PIK Group PJSC*		10,520		40,709
Skyworth Digital Holdings Ltd.		129,246		84,640
Steinhoff International Holdings N.V.		108,296		679,373
Symphony Ltd.		636		22,888
Tatung Co., Ltd.*		1,652,000		258,149
TCL Multimedia Technology Holdings Ltd.*		44,000		26,262
TTK Prestige Ltd.		202		13,664
Vestel Elektronik Sanayi ve Ticaret A/S*		7,415		19,212
Videocon Industries Ltd.		11,388		18,336
Whirlpool of India Ltd.*		2,289		25,778
Yuxing InfoTech Investment Holdings Ltd.		102,000		34,714
Zeng Hsing Industrial Co., Ltd.		4,000		18,045
				4,408,946
Household Products – 0.2%
Hindustan Unilever Ltd.		23,364		305,708
Jyothy Laboratories Ltd.		618		2,836
Kimberly-Clark de Mexico SAB de CV, Class A		47,200		112,205
Unilever Indonesia Tbk PT		29,500		95,235
Vinda International Holdings Ltd.		7,000		12,868
				528,852
Independent Power and Renewable Electricity Producers – 1.4%
Aboitiz Power Corp.		95,937		91,870
Adani Power Ltd.*		12,059		5,827
AES Gener S.A.		119,747		60,037
AES Tiete Energia S.A.		5,400		22,080
Aksa Enerji Uretim A/S*		23,830		24,390
Beijing Jingneng Clean Energy Co., Ltd., Class H		1,550,000		491,543
CGN Meiya Power Holdings Co., Ltd.* (a) (b)		944,000		143,598
CGN Power Co., Ltd., Class H(b)		295,000		94,693


	Shares		Value
Independent Power and Renewable Electricity Producers – (continued)
China Longyuan Power Group Corp. Ltd., Class H		134,000	$	93,108
China Power International Development Ltd.		215,000		92,295
China Power New Energy Development Co., Ltd.		3,540,000		278,374
China Resources Power Holdings Co., Ltd.		106,420		180,266
Cia Energetica de Sao Paulo (Preference), Class B*		3,700		15,343
Colbun S.A.		138,415		37,313
Datang International Power Generation Co., Ltd., Class H		123,500		35,185
E.ON Russia JSC		177,178		7,229
Electricity Generating PCL (NVDR)		8,400		42,685
Empresa Nacional de Electricidad S.A.		92,335		85,013
Energy Development Corp.		273,600		34,370
Eneva S.A.*		3,599,200		135,591
First Gen Corp.		112,539		48,604
Glow Energy PCL (NVDR)		19,000		48,139
Huadian Fuxin Energy Corp. Ltd., Class H		1,974,000		432,604
Huadian Power International Corp. Ltd., Class H		118,000		60,695
Huaneng Power International, Inc., Class H		242,000		173,766
Huaneng Renewables Corp. Ltd., Class H(a)		296,000		87,764
Inter Far East Energy Corp. (NVDR)		72,600		14,757
JSW Energy Ltd.		24,223		24,723
Lopez Holdings Corp.		1,357,000		211,563
Malakoff Corp. Bhd		194,700		81,738
NHPC Ltd.		43,444		13,525
NTPC Ltd.		68,617		144,103
Ratchaburi Electricity Generating Holding PCL (NVDR)		21,400		30,939
Reliance Power Ltd.		43,613		33,500
Renova Energia S.A.*		2,400		9,542

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			129

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Independent Power and Renewable Electricity Producers – (continued)
SPCG PCL (NVDR)		43,600	$	26,088
Superblock PCL (NVDR)*		243,200		12,811
Taiwan Cogeneration Corp.		53,000		39,767
Tractebel Energia S.A.		7,000		77,144
				3,542,582
Industrial Conglomerates – 2.1%
Aamal Co.*		3,738		13,433
Aboitiz Equity Ventures, Inc.		55,460		78,540
Aditya Birla Nuvo Ltd.		952		12,279
Alfa SAB de CV, Class A		123,900		233,923
Alliance Global Group, Inc.		214,500		66,334
AntarChile S.A.		2,559		26,638
Beijing Enterprises Holdings Ltd.		17,000		88,975
Berjaya Corp. Bhd		2,183,000		215,143
Berli Jucker PCL		200		215
Berli Jucker PCL (NVDR)		200		215
The Bidvest Group Ltd.		10,536		268,423
CITIC Ltd.(a)		413,000		604,816
CJ Corp.		413		77,569
DMCI Holdings, Inc.		232,650		61,924
Doosan Corp.		794		74,912
Enka Insaat ve Sanayi A/S		66,109		114,980
Far Eastern New Century Corp.		118,000		88,355
Fosun International Ltd.(a)		88,500		122,986
Grupo Carso SAB de CV		11,800		56,674
Grupo Industrial Saltillo SAB de CV		30,600		58,041
Grupo KUO SAB De CV(a)		14,400		27,742
Hanwha Corp.		2,246		74,512
HAP Seng Consolidated Bhd		37,300		73,139
Harim Holdings Co., Ltd.*		26,537		115,986
Hong Leong Industries Bhd		48,000		90,434
Hosken Consolidated Investments Ltd.		49,383		419,629
Industries Qatar QSC		2,106		60,752
Jaiprakash Associates Ltd.*		874,852		98,920
JG Summit Holdings, Inc.		94,620		164,469
KAP Industrial Holdings Ltd.		139,799		62,108


	Shares		Value
Industrial Conglomerates – (continued)
KOC Holding A/S		49,206	$	257,626
Kolon Corp.		144		7,431
LG Corp.		4,071		243,317
LT Group, Inc.		54,200		17,802
Mannai Corp. QSC		192		4,726
MMC Corp. Bhd		34,200		18,385
Quinenco S.A.		30,977		60,973
Reunert Ltd.		17,713		89,360
Samsung C&T Corp.		3,009		345,953
San Miguel Corp.		52,300		74,734
Shanghai Industrial Holdings Ltd.		16,000		36,508
Siemens Ltd.		1,779		30,516
Sigdo Koppers S.A.		54,240		75,835
Sime Darby Bhd		76,700		151,181
SK Holdings Co., Ltd.		1,121		220,383
SM Investments Corp.		10,690		215,225
Turkiye Sise ve Cam Fabrikalari A/S		29,348		41,066
Yazicilar Holding A/S, Class A		4,309		23,779
				5,366,866
Insurance – 2.5%
Allianz Malaysia Bhd*		8,300		21,672
Anadolu Hayat Emeklilik A/S		10,458		21,445
Bajaj Finserv Ltd.		1,104		31,213
Bangkok Life Assurance PCL (NVDR)		13,540		14,827
BB Seguridade Participacoes S.A.		21,800		189,016
Cathay Financial Holding Co., Ltd.		295,000		331,558
China Life Insurance Co., Ltd.		118,000		89,086
China Life Insurance Co., Ltd., Class H		243,000		565,743
China Pacific Insurance Group Co., Ltd., Class H		94,400		333,440
China Reinsurance Group Corp., Class H*		354,000		83,056
China Taiping Insurance Holdings Co., Ltd.*		47,200		96,746
Discovery Ltd.(a)		11,387		102,156
Dongbu Insurance Co., Ltd.		1,985		122,124

See Accompanying Notes to the Financial Statements.


130		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Insurance – (continued)
Hanwha General Insurance Co., Ltd.		29,323	$	208,457
Hanwha Life Insurance Co., Ltd.		9,210		53,996
Hyundai Marine & Fire Insurance Co., Ltd.		3,494		97,516
KB Insurance Co., Ltd.		2,202		59,910
Korean Reinsurance Co.		3,079		35,941
Liberty Holdings Ltd.		3,013		29,725
Long Bon International Co., Ltd.		236,000		135,367
LPI Capital Bhd		12,306		48,260
Max Financial Services Ltd.		2,832		15,592
Max India Ltd.* ^		2,832		1,872
Mercuries & Associates Holding Ltd.		295,000		171,038
Meritz Fire & Marine Insurance Co., Ltd.		1,700		24,096
MMI Holdings Ltd.(a)		56,537		94,370
Panin Financial Tbk PT*		10,997,600		150,938
The People’s Insurance Co. Group of China Ltd., Class H		357,320		144,638
PICC Property & Casualty Co., Ltd., Class H		259,634		475,275
Ping An Insurance Group Co. of China Ltd., Class H		177,000		836,262
Porto Seguro S.A.		3,700		29,786
Powszechny Zaklad Ubezpieczen S.A.		19,706		178,086
Qatar Insurance Co. SAQ		5,641		123,826
Qualitas Controladora SAB de CV*		171,100		230,940
Rand Merchant Investment Holdings Ltd.		59,114		177,541
Samsung Fire & Marine Insurance Co., Ltd.		1,357		350,743
Samsung Fire & Marine Insurance Co., Ltd. (Preference)		108		17,773
Samsung Life Insurance Co., Ltd.		3,481		334,535
Sanlam Ltd.(a)		49,737		242,008


	Shares		Value
Insurance – (continued)
Santam Ltd.		665	$	11,013
Shin Kong Financial Holding Co., Ltd.		419,644		84,962
Sul America S.A.		15,061		72,320
Syarikat Takaful Malaysia Bhd		19,900		20,223
Taiwan Fire & Marine Insurance Co., Ltd.		15,000		9,557
Tongyang Life Insurance Co., Ltd.		1,754		16,318
				6,484,966
Internet & Catalog Retail – 0.1%
B2W Cia Digital*		5,926		23,527
CJ O Shopping Co., Ltd.		31		5,436
Cogobuy Group* (b)		10,000		14,541
GS Home Shopping, Inc.		85		13,764
Hyundai Home Shopping Network Corp.		35		4,101
Interpark Corp.		1,402		24,055
Interpark Holdings Corp.		1,875		14,498
NS Shopping Co., Ltd.*		708		93,207
				193,129
Internet Software & Services – 1.8%
Addcn Technology Co., Ltd.		1,300		9,996
Ahnlab, Inc.		620		36,077
Daou Technology, Inc.		192		3,943
HC International, Inc.* ^		40,000		27,020
Info Edge India Ltd.		3,962		44,903
Just Dial Ltd.		624		7,963
Kakao Corp.		885		78,061
KT Hitel Co., Ltd.*		1,063		8,182
NAVER Corp.		944		560,899
PChome Online, Inc.		4,913		52,172
SBS Contents Hub Co., Ltd.		660		6,980
SINA Corp.*		2,500		125,225
Sohu.com, Inc.*		1,200		53,916
Tencent Holdings Ltd.(a)		178,188		3,650,038
Tian Ge Interactive Holdings Ltd.* (b)		48,000		39,416
				4,704,791

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			131

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
IT Services – 1.3%
Chinasoft International Ltd.*		118,000	$	42,897
Cielo S.A.		35,400		342,121
eClerx Services Ltd.		1,429		28,430
EOH Holdings Ltd.		3,031		29,614
HCL Technologies Ltd.		17,818		201,551
Hexaware Technologies Ltd.		12,138		44,138
Hi Sun Technology China Ltd.*		204,000		36,028
Infosys Ltd.		66,611		1,213,218
Kginicis Co., Ltd.		1,317		19,881
Mindtree Ltd.		6,648		68,033
Mphasis Ltd.		1,440		10,621
My EG Services Bhd		151,100		77,745
Nan Hai Corp. Ltd.*		1,650,000		40,839
NHN KCP Corp.		907		18,826
Persistent Systems Ltd.		4,630		51,832
Posco ICT Co., Ltd.*		4,677		23,562
Samsung SDS Co., Ltd.		1,239		185,404
SONDA S.A.		7,485		14,952
Systex Corp.		16,000		26,937
Tata Consultancy Services Ltd.		15,517		593,146
Tech Mahindra Ltd.		14,278		104,647
TravelSky Technology Ltd., Class H		20,000		37,281
Vakrangee Ltd.		19,556		58,229
Wipro Ltd.		20,060		167,651
				3,437,583
Leisure Products – 0.1%
Giant Manufacturing Co., Ltd.		11,000		66,164
HLB, Inc.*		576		8,619
Johnson Health Tech Co., Ltd.		9,090		14,374
KMC Kuei Meng International, Inc.		2,158		8,163
Merida Industry Co., Ltd.		7,350		30,195
Samick Musical Instruments Co., Ltd.		5,259		14,239
Topkey Corp.		9,192		31,350
				173,104


	Shares		Value
Life Sciences Tools & Services – 0.0%^†
Divi’s Laboratories Ltd.		3,488	$	55,273
Machinery – 1.4%
AIA Engineering Ltd.		1,599		23,887
Airtac International Group		6,494		43,088
Ashok Leyland Ltd.		67,110		108,056
BEML Ltd.		768		10,663
China Conch Venture Holdings Ltd.		59,000		119,564
China Huarong Energy Co., Ltd.* (a)		115,100		11,128
China International Marine Containers Group Co., Ltd., Class H		42,992		67,282
China Yuchai International Ltd.		13,900		142,475
CIMC Enric Holdings Ltd.		14,000		7,363
CSBC Corp. Taiwan		24,000		11,497
Cummins India Ltd.		2,089		27,877
Daewoo Shipbuilding & Marine Engineering Co., Ltd.*		5,023		24,335
Doosan Infracore Co., Ltd.*		2,100		14,431
Eicher Motors Ltd.		354		106,926
Haitian International Holdings Ltd.		30,000		51,359
Hanjin Heavy Industries & Construction Co., Ltd.*		49,147		175,124
Hiwin Technologies Corp.		9,581		42,182
Hy-Lok Corp.		601		15,007
Hyundai Elevator Co., Ltd.*		547		27,748
Hyundai Heavy Industries Co., Ltd.*		1,416		144,160
Hyundai Mipo Dockyard Co., Ltd.*		388		24,927
Hyundai Rotem Co., Ltd.*		1,857		29,255
King Slide Works Co., Ltd.		3,000		35,578
Kinik Co.		18,000		28,295
Lakshmi Machine Works Ltd.		148		7,899
Lonking Holdings Ltd.		1,475,000		247,190
Otokar Otomotiv ve Savunma Sanayi A/S		706		27,338
QST International Corp.		1,000		2,412
Rechi Precision Co., Ltd.		21,969		16,416

See Accompanying Notes to the Financial Statements.


132		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Machinery – (continued)
Samsung Heavy Industries Co., Ltd.*		9,360	$	87,899
San Shing Fastech Corp.		4,400		8,131
Sany Heavy Equipment International Holdings Co., Ltd.*		164,000		32,770
Shanghai Mechanical and Electrical Industry Co., Ltd., Class B		162,400		371,896
Shanghai Zhenhua Heavy Industries Co., Ltd., Class B*		125,300		63,527
Shin Zu Shing Co., Ltd.		1,000		2,856
Sinotruk Hong Kong Ltd.		11,000		5,559
SKF India Ltd.*		1,144		21,838
Syncmold Enterprise Corp.		77,000		126,292
Thermax Ltd.		2,214		25,767
Turk Traktor ve Ziraat Makineleri A/S		923		27,383
United Tractors Tbk PT		67,200		76,433
WEG S.A.		29,500		129,941
Weichai Power Co., Ltd., Class H(a)		767,000		925,478
Yungtay Engineering Co., Ltd.		16,000		23,216
Zoomlion Heavy Industry Science and Technology Co., Ltd., Class H(a)		48,000		16,274
				3,538,722
Marine – 0.3%
Cia Sud Americana de Vapores S.A.*		736,752		15,517
Evergreen Marine Corp. Taiwan Ltd.		23,230		8,571
Grindrod Ltd.		19,248		19,423
Hanjin Shipping Co., Ltd.*		4,400		7,337
Hyundai Merchant Marine Co., Ltd.* ^		1,355		2,378
Korea Line Corp.*		1,439		22,480
MISC Bhd		35,400		76,572
Qatar Navigation QSC		1,324		32,919
Shipping Corp of India Ltd.*		84,901		89,535
Sincere Navigation Corp.		33,000		20,821


	Shares		Value
Marine – (continued)
Sinotrans Shipping Ltd.(a)		91,500	$	16,160
Thoresen Thai Agencies PCL (NVDR)		46,419		12,293
Trencor Ltd.(a)		109,091		345,411
U-Ming Marine Transport Corp.		33,000		26,705
Wan Hai Lines Ltd.		32,000		17,611
Wisdom Marine Lines Co., Ltd.*		6,192		7,180
Yang Ming Marine Transport Corp.*		72,000		19,042
				739,955
Media – 1.7%
Alibaba Pictures Group Ltd.* (a)		530,000		124,349
Astro Malaysia Holdings Bhd		116,200		82,394
BEC World PCL (NVDR)		28,400		21,139
Cheil Worldwide, Inc.		1,603		23,636
CJ CGV Co., Ltd.		240		24,118
CJ E&M Corp.		691		40,815
CJ Hellovision Co., Ltd.		3,312		35,753
Cyfrowy Polsat S.A.*		14,228		90,438
Dish TV India Ltd.*		17,517		23,900
Global Mediacom Tbk PT		6,962,400		612,404
Grupo Televisa SAB		70,800		414,403
Hyundai Hy Communications & Network Co., Ltd.		38,409		124,726
IHQ, Inc.*		5,251		10,369
Innocean Worldwide, Inc.		184		13,323
KEYEAST Co., Ltd.*		4,710		15,254
KT Skylife Co., Ltd.		2,187		31,095
Loen Entertainment, Inc.*		236		16,032
Major Cineplex Group PCL (NVDR)		25,300		22,816
Media Nusantara Citra Tbk PT		246,500		43,924
Megacable Holdings SAB de CV		17,700		82,097
MNC Investama Tbk PT		2,357,400		30,209
Multiplus S.A.		3,500		38,126
Naspers Ltd., Class N		14,470		1,993,061
Network 18 Media & Investments Ltd.*		27,440		16,816

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			133

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Media – (continued)
Phoenix Satellite Television Holdings Ltd.		20,000	$	4,641
Plan B Media PCL (NVDR)		68,200		12,984
SBS Media Holdings Co., Ltd.		8,899		25,891
SHOWBOX Corp.		1,985		14,094
SM Entertainment Co.*		143		5,146
SMI Holdings Group Ltd.		256,014		24,422
Smiles S.A.		3,400		39,451
Star Media Group Bhd		20,000		12,441
Surya Citra Media Tbk PT		127,049		30,828
TV18 Broadcast Ltd.*		39,466		23,056
VGI Global Media PCL (NVDR)		70,796		9,242
Viva China Holdings Ltd.*		424,000		36,075
Wisdom Sports Group		71,000		27,824
YG Entertainment, Inc.		947		35,573
Zee Entertainment Enterprises Ltd.		15,635		97,798
				4,330,663
Metals & Mining – 4.5%
African Rainbow Minerals Ltd.		5,764		45,565
Alrosa PAO		108,162		123,575
Aluminum Corp. of China Ltd., Class H* (a)		150,000		50,276
Aneka Tambang Persero Tbk PT*		6,444,310		371,374
Angang Steel Co., Ltd., Class H(a)		126,000		59,774
Anglo American Platinum Ltd.*		2,929		84,928
AngloGold Ashanti Ltd.* (a)		13,157		209,684
Assore Ltd.		1,776		25,048
Bradespar S.A. (Preference)		178,545		439,274
China Hongqiao Group Ltd.(a)		34,000		24,939
China Metal Products		200,725		237,425
China Metal Recycling Holdings Ltd.* ^		51,000		—
China Molybdenum Co., Ltd., Class H^		172,200		28,858


	Shares		Value
Metals & Mining – (continued)
China Steel Corp.		413,000	$	290,033
China Zhongwang Holdings Ltd.(a)		31,600		15,806
Chinalco Mining Corp. International*		128,000		13,696
Cia Minera Milpo SAA		433,459		336,832
Cia Siderurgica Nacional S.A.*		39,300		151,469
Dongkuk Steel Mill Co., Ltd.*		48,557		406,559
Eregli Demir ve Celik Fabrikalari TAS		96,622		161,480
Ezz Steel*		17,574		17,515
Feng Hsin Steel Co., Ltd.		26,000		36,679
Gerdau S.A.		12,700		20,683
Gerdau S.A. (Preference)		45,682		103,919
Gloria Material Technology Corp.		328,900		179,986
Gold Fields Ltd.(a)		33,724		153,819
Grupa Kety S.A.		649		55,898
Grupo Mexico SAB de CV		147,500		376,817
Grupo Simec SAB de CV* (a)		6,200		20,776
Hindalco Industries Ltd.		28,932		42,026
Honbridge Holdings Ltd.*		112,000		8,663
Hyundai Steel Co.		5,027		277,513
Impala Platinum Holdings Ltd.*		18,700		77,803
Industrias Penoles SAB de CV		7,200		113,049
Jastrzebska Spolka Weglowa S.A.*		35,962		184,997
Jiangxi Copper Co., Ltd., Class H		39,000		47,712
Jindal Steel & Power Ltd.*		282,444		297,220
JSW Steel Ltd.		4,973		102,954
Kardemir Karabuk Demir Celik Sanayi ve Ticaret A/S, Class D		631,536		334,493
KGHM Polska Miedz S.A.		8,032		156,359
KISCO Corp.		3,304		152,238
KISWIRE Ltd.		1,418		53,079
Korea Zinc Co., Ltd.		472		205,262
Koza Altin Isletmeleri A/S*		36,026		235,936
Kumba Iron Ore Ltd.*		4,511		36,795
Magnitogorsk Iron & Steel Works OJSC		17,322		6,356

See Accompanying Notes to the Financial Statements.


134		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Metals & Mining – (continued)
Minera Frisco SAB de CV*		30,500	$	21,883
MMC Norilsk Nickel PJSC		2,741		398,718
MMC Norilsk Nickel PJSC (ADR)		12,120		178,770
MMG Ltd.*		88,000		19,853
MOIL Ltd.		33,872		121,945
National Aluminium Co., Ltd.		27,956		19,451
Nickel Asia Corp.		101,064		11,467
NLMK PJSC		25,236		34,821
NMDC Ltd.		40,841		58,586
Northam Platinum Ltd.*		22,914		78,385
Poongsan Corp.		14,101		394,170
POSCO		4,602		971,372
Press Metal Bhd		549,500		412,143
Seah Besteel Corp.		761		19,469
SeAH Holdings Corp.		425		52,034
SeAH Steel Corp.		4,071		296,911
Severstal PAO		5,253		59,041
Severstal PAO (GDR)		2,805		32,594
Shougang Fushan Resources Group Ltd.		354,000		53,393
Sibanye Gold Ltd.		42,404		160,277
Stalprodukt S.A.		334		25,532
Steel Authority of India Ltd.		21,842		15,608
STP & I PCL		248,400		76,092
STP & I PCL (NVDR)		226,760		69,463
TA Chen Stainless Pipe		531,000		260,125
Tang Eng Iron Works Co., Ltd.*		8,000		10,939
Tata Steel Ltd.		12,905		68,309
Ton Yi Industrial Corp.		46,000		22,106
Tung Ho Steel Enterprise Corp.		32,000		20,538
Usinas Siderurgicas de Minas Gerais S.A.*		13,721		18,410
Vale Indonesia Tbk PT*		129,900		18,321
Vale S.A.		47,200		271,235
Vale S.A. (Preference)		64,900		296,590
Vedanta Ltd.		58,203		91,082
Volcan Cia Minera SAA, Class B*		1,891,173		364,505


	Shares		Value
Metals & Mining – (continued)
Yeong Guan Energy Technology Group Co., Ltd.		6,425	$	41,734
Yieh Phui Enterprise Co., Ltd.		158,702		40,299
Young Poong Corp.		29		27,565
Zhaojin Mining Industry Co., Ltd., Class H		47,000		40,170
Zijin Mining Group Co., Ltd., Class H		238,000		78,851
				11,627,899
Multiline Retail – 0.8%
Aeon Co. M Bhd		10,800		7,796
El Puerto de Liverpool SAB de CV		7,375		84,203
Far Eastern Department Stores Ltd.		57,012		30,580
Future Retail Ltd.		10,119		22,059
Golden Eagle Retail Group Ltd.(a)		14,000		16,135
Gwangju Shinsegae Co., Ltd.		373		85,770
Hyundai Department Store Co., Ltd.		773		100,068
Intime Retail Group Co., Ltd.		71,000		64,069
Lojas Americanas S.A.		5,250		16,705
Lojas Americanas S.A. (Preference)		30,446		141,166
Lojas Renner S.A.		23,600		141,225
Lotte Shopping Co., Ltd.		969		231,322
Maoye International Holdings Ltd.		591,000		61,712
Matahari Department Store Tbk PT		85,100		122,604
Poya International Co., Ltd.		4,080		43,263
Ripley Corp. S.A.		684,402		336,266
Robinson Department Store PCL (NVDR)		6,500		9,583
SACI Falabella		32,745		253,505
Shinsegae Co., Ltd.		413		76,663
Springland International Holdings Ltd.		767,000		139,415
Taiwan FamilyMart Co., Ltd.		2,000		12,991
Woolworths Holdings Ltd.		23,545		152,105
				2,149,205

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			135

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Multi-Utilities – 0.2%
Qatar Electricity & Water Co. QSC		959	$	55,012
Tianjin Development Holdings Ltd.		298,000		148,670
YTL Corp. Bhd		352,300		140,686
YTL Power International Bhd		266,960		102,506
				446,874
Oil, Gas & Consumable Fuels – 6.6%
AAG Energy Holdings Ltd.* (b)		306,016		49,706
Adaro Energy Tbk PT		1,431,600		79,244
AK Transneft OAO (Preference)		83		256,895
The Bangchak Petroleum PCL (NVDR)		10,400		9,230
Banpu PCL (NVDR)		13,800		5,057
Bashneft PAO		648		28,837
Bashneft PAO (Preference)		2,006		57,684
Bharat Petroleum Corp. Ltd.		5,369		79,163
Cairn India Ltd.		12,174		26,640
China Coal Energy Co., Ltd., Class H		171,000		81,122
China Petroleum & Chemical Corp., Class H		1,534,000		1,093,567
China Shenhua Energy Co., Ltd., Class H		206,500		349,260
CNOOC Ltd.		531,000		661,252
Coal India Ltd.		40,297		174,997
Cosan S.A. Industria e Comercio		8,000		73,537
Dana Gas PJSC*		2,641,430		409,920
Ecopetrol S.A.		364,392		180,765
Empresas COPEC S.A.		15,635		156,230
Energy Absolute PCL (NVDR)		73,800		45,003
Esso Thailand PCL (NVDR)*		781,100		117,400
Exxaro Resources Ltd.		6,974		44,138
Formosa Petrochemical Corp.		46,000		130,785
Gazprom PAO		555,802		1,447,624
Gazprom PAO (ADR)		73,857		381,693
The Great Eastern Shipping Co., Ltd.		38,940		192,763


	Shares		Value
Oil, Gas & Consumable Fuels – (continued)
Grupa Lotos S.A.*		1,404	$	10,909
GS Holdings Corp.		3,515		170,598
Hankook Shell Oil Co., Ltd.		56		23,149
Hindustan Petroleum Corp. Ltd.		5,289		66,481
Indian Oil Corp. Ltd.		28,233		184,411
Indo Tambangraya Megah Tbk PT		370,700		219,249
Inner Mongolia Yitai Coal Co., Ltd., Class B		65,800		53,101
IRPC PCL (NVDR)		448,700		65,513
Kunlun Energy Co., Ltd.(a)		136,022		118,536
Lubelski Wegiel Bogdanka S.A.		9,330		111,624
Lukoil PJSC		26,315		1,119,605
Lukoil PJSC (ADR)		589		24,965
Mangalore Refinery & Petrochemicals Ltd.*		8,266		8,424
MOL Hungarian Oil & Gas PLC		3,658		223,850
Novatek OAO		24,072		228,057
Oil & Natural Gas Corp. Ltd.		103,191		337,981
Oil India Ltd.		8,587		42,987
PetroChina Co., Ltd., Class H		708,000		521,152
Petroleo Brasileiro S.A.*		171,100		660,442
Petroleo Brasileiro S.A. (Preference)*		236,000		698,261
Petron Corp.		140,600		31,966
Petronas Dagangan Bhd		8,500		51,873
Polski Koncern Naftowy Orlen S.A.		17,261		310,669
Polskie Gornictwo Naftowe i Gazownictwo S.A.		52,038		69,206
PTT Exploration & Production PCL		469		1,010
PTT Exploration & Production PCL (NVDR)		86,121		185,531
PTT PCL (NVDR)		47,200		410,787
Qatar Fuel QSC		72		3,114
Qatar Gas Transport Co., Ltd.		10,191		64,815
Reliance Industries Ltd.		52,038		770,960
Rosneft OAO		69,555		377,441
Rosneft OAO (GDR)		3,546		19,361
Sasol Ltd.		16,461		539,075

See Accompanying Notes to the Financial Statements.


136		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Oil, Gas & Consumable Fuels – (continued)
Semirara Mining & Power Corp.		12,450	$	33,722
Sinopec Kantons Holdings Ltd.		26,000		13,742
SK Gas Ltd.		2,974		222,123
SK Innovation Co., Ltd.		3,481		473,543
S-Oil Corp.		1,843		140,886
Sugih Energy Tbk PT*		431,300		11,283
Surgutneftegas OAO		429,651		226,508
Surgutneftegas OAO (ADR)		17,091		90,411
Surgutneftegas OAO (Preference)		325,337		211,250
Surgutneftegas OAO (Preference) (ADR)		12,172		77,292
Tambang Batubara Bukit Asam Persero Tbk PT		57,800		30,899
Tatneft PAO		46,617		245,724
Tatneft PAO (ADR)		6,184		193,868
Tatneft PAO (Preference)		968		2,873
Thai Oil PCL (NVDR)		60,200		113,748
Tupras Turkiye Petrol Rafinerileri A/S		3,658		96,677
Ultrapar Participacoes S.A.		17,700		372,229
Yanzhou Coal Mining Co., Ltd., Class H(a)		1,416,000		806,827
				17,221,220
Paper & Forest Products – 0.4%
Chung Hwa Pulp Corp.		81,171		25,066
Duratex S.A.		17,374		39,624
Empresas CMPC S.A.		44,318		99,076
Fibria Celulose S.A.		7,000		61,464
Hansol Paper Co., Ltd.		10,125		219,490
Lee & Man Paper Manufacturing Ltd.		59,000		38,714
Long Chen Paper Co., Ltd.		413,000		172,868
Mondi Ltd.		4,012		77,373
Moorim P&P Co., Ltd.		17,051		64,873
Nine Dragons Paper Holdings Ltd.		91,000		65,576
Sappi Ltd.*		13,983		60,840
Superb Summit International Group Ltd.* ^		395,000		74,344


	Shares		Value
Paper & Forest Products – (continued)
Suzano Papel e Celulose S.A. (Preference), Class A		24,782	$	94,581
YFY, Inc.		31,000		9,659
				1,103,548
Personal Products – 0.7%
Amorepacific Corp.		1,003		358,717
Amorepacific Corp. (Preference)		166		33,145
AMOREPACIFIC Group		885		130,490
Bajaj Corp. Ltd.		4,145		24,190
Bioland Ltd.		931		19,283
Chlitina Holding Ltd.		1,000		7,054
CKH Food & Health Ltd.*		41,831		105,550
Colgate-Palmolive India Ltd.		1,572		19,928
Coreana Cosmetics Co., Ltd.		2,352		18,413
Cosmax BTI, Inc.		48		2,228
Cosmax, Inc.		216		26,635
COSON Co., Ltd.*		1,262		23,149
Dabur India Ltd.		13,688		56,915
Emami Ltd.		1,351		20,498
Godrej Consumer Products Ltd.		3,540		70,536
Grape King Bio Ltd.		8,000		48,244
Hengan International Group Co., Ltd.(a)		22,012		198,066
Hypermarcas S.A.		11,800		104,637
Karex Bhd		34,950		23,172
Korea Kolmar Co., Ltd.		240		18,367
Korea Kolmar Holdings Co., Ltd.		443		19,712
Leaders Cosmetics Co., Ltd.*		738		19,010
LG Household & Health Care Ltd.		354		312,865
LG Household & Health Care Ltd. (Preference)		64		33,084
Marico Ltd.		14,646		57,211
Microbio Co., Ltd.*		45,365		34,460
Natura Cosmeticos S.A.		8,400		62,072
Procter & Gamble Hygiene & Health Care Ltd.		207		19,706
				1,867,337

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			137

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Pharmaceuticals – 1.6%
Abbott India Ltd.		619	$	43,208
Adcock Ingram Holdings Ltd.		15,665		46,396
Ajanta Pharma Ltd.		1,415		32,308
Aspen Pharmacare Holdings Ltd.* (a)		8,378		198,202
Aurobindo Pharma Ltd.		7,172		82,170
Beijing Tong Ren Tang Chinese Medicine Co., Ltd.		34,000		36,554
Binex Co., Ltd.*		1,673		28,926
Boryung Pharmaceutical Co., Ltd.		327		16,158
Bukwang Pharmaceutical Co., Ltd.		1,006		25,119
Cadila Healthcare Ltd.		7,540		37,240
Center Laboratories, Inc.*		19,250		40,406
China Medical System Holdings Ltd.		39,000		50,779
China Shineway Pharmaceutical Group Ltd.		236,000		270,464
Chong Kun Dang Pharmaceutical Corp.		331		32,536
Chongkundang Holdings Corp.		2,185		169,714
Cipla Ltd.		8,142		65,917
Consun Pharmaceutical Group Ltd.		39,000		19,155
CSPC Pharmaceutical Group Ltd.		54,000		48,102
Dae Hwa Pharmaceutical Co., Ltd.		480		15,271
Daewoong Pharmaceutical Co., Ltd.		452		35,663
Dawnrays Pharmaceutical Holdings Ltd.		36,000		29,609
Dong-A Socio Holdings Co., Ltd.		267		43,586
Dong-A ST Co., Ltd.		271		34,012
DongKook Pharmaceutical Co., Ltd.		450		25,395
Dr Reddy’s Laboratories Ltd.		2,786		129,732
Genomma Lab Internacional SAB de CV, Class B* (a)		92,700		102,283


	Shares		Value
Pharmaceuticals – (continued)
GlaxoSmithKline Pharmaceuticals Ltd.		690	$	38,816
Glenmark Pharmaceuticals Ltd.		5,609		70,140
Hanall Biopharma Co., Ltd.*		2,259		31,524
Hanmi Pharm Co., Ltd.		179		93,789
Hanmi Science Co., Ltd.		839		100,144
Hua Han Health Industry Holdings Ltd.		3,540,000		369,644
Huons Co., Ltd.^		889		63,121
Il Dong Pharmaceutical Co., Ltd.		838		20,777
Ilyang Pharmaceutical Co., Ltd.*		240		9,921
Jeil Pharmaceutical Co.		376		27,555
Jubilant Life Sciences Ltd.		4,445		26,762
JW Pharmaceutical Corp.		945		33,051
Kalbe Farma Tbk PT		427,200		44,541
Kolon Life Science, Inc.		96		14,467
Komipharm International Co., Ltd.*		2,044		71,219
Kwang Dong Pharmaceutical Co., Ltd.		5,143		46,266
Kyongbo Pharmaceutical Co., Ltd.		8,260		115,266
Lee’s Pharmaceutical Holdings Ltd.		20,000		16,217
LG Life Sciences Ltd.*		988		59,571
Lupin Ltd.		6,682		161,912
Luye Pharma Group Ltd.* (a)		67,500		46,989
Natco Pharma Ltd.		3,518		25,973
Piramal Enterprises Ltd.		3,700		66,394
Richter Gedeon Nyrt		3,422		68,092
Shanghai Fosun Pharmaceutical Group Co., Ltd., Class H		6,000		16,320
Sino Biopharmaceutical Ltd.		118,000		83,968
SSY Group Ltd.		252,165		86,469
Strides Shasun Ltd.		3,347		54,547
Sun Pharma Advanced Research Co., Ltd.*		1,560		7,055
Sun Pharmaceutical Industries Ltd.		34,515		422,162
Tempo Scan Pacific Tbk PT		161,200		24,447

See Accompanying Notes to the Financial Statements.


138		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Pharmaceuticals – (continued)
Tong Ren Tang Technologies Co., Ltd., Class H		33,000	$	51,815
Torrent Pharmaceuticals Ltd.		2,551		55,006
TTY Biopharm Co., Ltd.		7,686		25,141
TWi Pharmaceuticals, Inc.*		3,000		10,511
Whanin Pharmaceutical Co., Ltd.		1,318		18,739
Wockhardt Ltd.*		384		5,743
Yuhan Corp.		372		95,334
YungShin Global Holding Corp.		13,650		20,357
				4,258,670
Professional Services – 0.0%^†
Sporton International, Inc.		6,238		34,233
Real Estate Investment Trusts (REITs) – 1.0%
Arrowhead Properties Ltd.		96,712		58,652
Axis Real Estate Investment Trust		94,400		39,389
Capitaland Malaysia Mall Trust		72,500		26,725
Concentradora Fibra Danhos S.A. de CV		25,400		57,178
Concentradora Hipotecaria SAPI de CV		241,900		353,051
Emira Property Fund Ltd.		62,783		70,660
Emlak Konut Gayrimenkul Yatirim Ortakligi A/S		84,727		91,267
Fibra Uno Administracion S.A. de CV(a)		82,600		197,516
Fortress Income Fund Ltd.		43,985		116,625
Fortress Income Fund Ltd., Class A(a)		73,071		82,445
Growthpoint Properties Ltd.		69,010		122,391
Hyprop Investments Ltd.		9,395		81,404
KLCCP Stapled Group		9,500		17,534
Macquarie Mexico Real Estate Management S.A. de CV*		637,200		880,885
Pavilion Real Estate Investment Trust		11,800		5,044
PLA Administradora Industrial S de RL de CV*		35,400		65,678


	Shares		Value
Real Estate Investment Trusts (REITs) – (continued)
Prologis Property Mexico S.A. de CV*		9,600	$	15,188
Redefine Properties Ltd.(a)		137,588		119,243
Resilient REIT Ltd.		15,349		147,096
SA Corporate Real Estate Fund Nominees Pty Ltd.		231,587		82,145
Sunway Real Estate Investment Trust		39,400		16,339
Vukile Property Fund Ltd.		16,272		19,943
				2,666,398
Real Estate Management & Development – 5.7%
8990 Holdings, Inc.		67,600		11,520
Agile Property Holdings Ltd.		57,750		32,906
Alam Sutera Realty Tbk PT		7,038,700		211,353
Aldar Properties PJSC		169,013		125,162
Amata Corp. PCL (NVDR)		50,200		17,102
AP Thailand PCL (NVDR)		680,900		116,960
Attacq Ltd.* (a)		37,996		55,812
Ayala Land, Inc.		171,100		126,443
Bangkok Land PCL (NVDR)		1,169,600		50,896
Barwa Real Estate Co.		5,648		52,447
Beijing Capital Land Ltd., Class H*		708,000		280,199
Beijing Properties Holdings Ltd.*		370,800		25,812
Belle Corp.		96,000		6,224
BR Malls Participacoes S.A.		12,500		61,725
BR Properties S.A.		9,600		28,320
Bumi Serpong Damai Tbk PT		479,100		67,208
C C Land Holdings Ltd.		1,003,000		292,216
Carnival Group International Holdings Ltd.*		409,223		53,281
Cathay Real Estate Development Co., Ltd.		23,000		10,198
Central China Real Estate Ltd.		480,016		92,201
Central Pattana PCL (NVDR)		25,700		38,811
China Aoyuan Property Group Ltd.		1,121,000		222,547
China Jinmao Holdings Group Ltd.(a)		138,000		39,672
China Merchants Land Ltd.		970,000		147,553
China Oceanwide Holdings Ltd.*		202,000		23,436

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			139

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Real Estate Management & Development – (continued)
China Overseas Grand Oceans Group Ltd.		649,000	$	207,487
China Overseas Land & Investment Ltd.		246,000		784,884
China Resources Land Ltd.		145,777		360,064
China SCE Property Holdings Ltd.		1,180,000		249,471
China South City Holdings Ltd.		112,000		21,513
China Vanke Co., Ltd., Class H		69,614		174,457
China Vast Industrial Urban Development Co., Ltd.(b)		413,000		132,037
Chong Hong Construction Co., Ltd.		177,000		283,722
CIFI Holdings Group Co., Ltd.		253,149		58,741
Ciputra Development Tbk PT		622,451		58,762
Colour Life Services Group Co., Ltd.		47,000		36,111
Corp. Inmobiliaria Vesta SAB de CV		29,500		48,291
Country Garden Holdings Co., Ltd.(a)		413,446		163,626
Dalian Wanda Commercial Properties Co., Ltd., Class H^ (a) (b)		35,400		233,879
DAMAC Properties Dubai Co. PJSC		93,397		65,605
Deyaar Development PJSC*		167,706		29,405
DLF Ltd.		5,566		10,867
Dongwon Development Co., Ltd.		29,031		110,325
DoubleDragon Properties Corp.		38,500		32,023
Douja Promotion Groupe Addoha S.A.		90,742		368,582
Eastern & Oriental Bhd*		151,474		59,326
Echo Investment S.A.		13,632		24,803
Eco World Development Group Bhd*		80,600		26,616
Emaar Malls Group PJSC		92,839		73,302
Emaar Properties PJSC		106,967		198,036


	Shares		Value
Real Estate Management & Development – (continued)
Evergrande Real Estate Group Ltd.(a)		295,000	$	219,048
Ezdan Holding Group QSC		34,397		173,880
Fantasia Holdings Group Co., Ltd.		1,350,018		179,255
Filinvest Land, Inc.		7,375,000		287,843
Fullshare Holdings Ltd.*		132,500		42,361
Future Land Development Holdings Ltd.		1,224,000		175,146
Gemdale Properties & Investment Corp. Ltd.		4,406,000		227,195
Globe Trade Centre S.A.*		11,472		21,173
Godrej Properties Ltd.		3,326		17,051
Goldin Properties Holdings Ltd.*		44,000		18,264
Greenland Hong Kong Holdings Ltd.*		413,000		146,412
Greentown China Holdings Ltd.*		25,500		19,033
Grupo GICSA S.A. de CV*		65,710		51,864
Guangzhou R&F Properties Co., Ltd., Class H(a)		802,400		1,123,352
Guorui Properties Ltd.		11,000		3,829
Hanson International Tbk PT*		1,252,935		76,955
Highwealth Construction Corp.		54,150		81,427
Hongkong Land Holdings Ltd.		41,300		262,255
Hopson Development Holdings Ltd.*		24,000		22,895
Housing Development & Infrastructure Ltd.*		30,593		39,711
Huaku Development Co., Ltd.		177,000		312,808
Huang Hsiang Construction Corp.		97,000		86,164
Hung Sheng Construction Ltd.		413,000		203,600
Hydoo International Holding Ltd.		1,062,000		127,322
IGB Corp. Bhd		13,100		8,350
Iguatemi Empresa de Shopping Centers S.A.		4,800		36,875
IOI Properties Group Bhd		54,100		33,514
Joy City Property Ltd.		186,000		27,095
Kaisa Group Holdings Ltd.* ^		66,000		13,273
Kindom Construction Corp.		236,000		117,074

See Accompanying Notes to the Financial Statements.


140		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Real Estate Management & Development – (continued)
Korea Real Estate Investment & Trust Co., Ltd.		22,198	$	68,382
KWG Property Holding Ltd.		46,418		30,159
Land & Houses PCL (NVDR)		104,100		25,183
Lippo Karawaci Tbk PT		853,100		65,658
Longfor Properties Co., Ltd.		62,000		87,279
LPN Development PCL (NVDR)		407,100		163,166
LSR Group PJSC		28,261		283,560
Mah Sing Group Bhd		1,047,410		391,455
MBK PCL (NVDR)		501,500		208,181
Medinet Nasr Housing*		7,914		18,101
Megaworld Corp.		413,000		33,207
Mingfa Group International Co., Ltd.* ^		36,000		8,771
Multiplan Empreendimentos Imobiliarios S.A.		1,400		24,058
Oberoi Realty Ltd.		1,621		6,838
Pakuwon Jati Tbk PT		1,037,300		41,294
Palm Hills Developments SAE		53,421		15,762
Parque Arauco S.A.		14,904		28,871
Poly Property Group Co., Ltd.		71,000		19,038
Powerlong Real Estate Holdings Ltd.(a)		885,000		191,667
Prince Housing & Development Corp.		59,197		21,658
Pruksa Real Estate PCL (NVDR)		24,700		18,209
Quality Houses PCL (NVDR)		352,625		22,411
Radium Life Tech Co., Ltd.*		531,000		165,459
Red Star Macalline Group Corp. Ltd., Class H* (b)		59,000		67,160
Redco Properties Group Ltd.(b)		56,000		39,633
Renhe Commercial Holdings Co., Ltd.*		746,000		25,485
Road King Infrastructure Ltd.		205,000		169,926
Robinsons Land Corp.		47,500		27,454
Ruentex Development Co., Ltd.		53,088		59,914
Sansiri PCL (NVDR)		4,248,000		187,287
Shanghai Industrial Urban Development Group Ltd.*		134,000		26,430


	Shares		Value
Real Estate Management & Development – (continued)
Shanghai Lujiazui Finance & Trade Zone Development Co., Ltd., Class B^		16,200	$	54,043
Shenzhen Investment Ltd.		118,266		47,872
Shimao Property Holdings Ltd.		60,500		83,919
Shining Building Business Co., Ltd.*		267,371		95,747
Shui On Land Ltd.(a)		122,666		32,101
Sino-Ocean Land Holdings Ltd.		180,267		81,335
Sinyi Realty, Inc.		19,499		16,263
SM Prime Holdings, Inc.		359,900		173,857
SOHO China Ltd.(a)		84,500		42,592
SP Setia Bhd Group		15,359		12,660
Summarecon Agung Tbk PT		313,000		37,143
Sunac China Holdings Ltd.(a)		99,000		63,556
Sunshine 100 China Holdings Ltd.* (b)		590,000		261,641
Sunway Bhd		42,533		34,079
Supalai PCL (NVDR)		22,800		13,381
Taiwan Land Development Corp.		71,500		23,831
Talaat Moustafa Group		43,834		32,925
Times Property Holdings Ltd.		354,000		146,488
Top Spring International Holdings Ltd.		258,000		111,752
U City PCL (NVDR)*		30,211,700		25,948
UEM Sunrise Bhd		114,900		30,001
Union Properties PJSC		109,478		25,038
United Development Co. QSC		3,570		18,920
UOA Development Bhd		14,400		8,110
Vista Land & Lifescapes, Inc.		3,452,000		353,391
Wanda Hotel Development Co., Ltd.*		150,000		15,469
WHA Corp. PCL (NVDR)*		394,090		34,298
Wuzhou International Holdings Ltd.*		156,000		16,893
Yida China Holdings Ltd.		82,000		32,558
Yuexiu Property Co., Ltd.(a)		226,520		32,997
Yuzhou Properties Co., Ltd.* (a)		1,003,000		274,114
Zall Development Group Ltd.		69,000		28,286

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			141

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Real Estate Management & Development – (continued)
Zhuguang Holdings Group Co., Ltd.*		160,000	$	30,320
				14,990,147
Road & Rail – 0.3%
Blue Bird Tbk PT		35,300		11,456
BTS Group Holdings PCL (NVDR)		92,840		24,453
CAR, Inc.* (a)		37,000		42,117
CJ Korea Express Corp.*		477		81,426
Container Corp. of India Ltd.		1,750		35,693
Dazhong Transportation Group Co., Ltd., Class B		49,800		61,802
Evergreen International Storage & Transport Corp.		66,000		26,704
Guangshen Railway Co., Ltd., Class H		118,000		61,303
JSL S.A.		100		269
Localiza Rent a Car S.A.		8,020		77,927
PKP Cargo S.A.		22,870		246,853
				670,003
Semiconductors & Semiconductor Equipment – 3.3%
A-DATA Technology Co., Ltd.		146,131		135,470
Advanced Semiconductor Engineering, Inc.		236,000		222,075
Advanced Wireless Semiconductor Co.		10,000		18,386
Ardentec Corp.		354,000		221,161
ASMedia Technology, Inc.		2,000		9,270
China Electronics Corp Holdings Co., Ltd.		46,000		13,698
Chipbond Technology Corp.		23,000		30,664
ChipMOS Technologies, Inc.		8,000		7,739
Darwin Precisions Corp.		49,000		18,383
Dongbu HiTek Co., Ltd.*		19,162		327,103
Elan Microelectronics Corp.		11,000		11,408
Elite Advanced Laser Corp.		9,600		46,135
Elite Semiconductor Memory Technology, Inc.		236,000		192,075
eMemory Technology, Inc.		3,000		32,927
Eo Technics Co., Ltd.		535		53,246


	Shares		Value
Semiconductors & Semiconductor Equipment – (continued)
Epistar Corp.		20,436	$	13,148
E-Ton Solar Tech Co., Ltd.*		314,000		97,842
Everlight Electronics Co., Ltd.		16,000		22,448
Faraday Technology Corp.		20,400		27,387
FocalTech Systems Co., Ltd.		236,000		203,051
GCL-Poly Energy Holdings Ltd.		966,020		144,457
GemVax & Kael Co., Ltd.*		336		6,075
Gigasolar Materials Corp.		1,380		23,019
Gigastorage Corp.*		8,000		5,978
Gintech Energy Corp.*		17,053		11,632
Globetronics Technology Bhd		16,200		14,183
Greatek Electronics, Inc.		13,000		14,833
G-SMATT GLOBAL Co., Ltd.*		1,146		35,404
Hansol Technics Co., Ltd.*		2,317		44,534
Hermes Microvision, Inc.		2,000		61,700
Holtek Semiconductor, Inc.		19,000		30,515
Hua Hong Semiconductor Ltd.* (b)		295,000		297,388
Inotera Memories, Inc.*		141,000		128,090
ISC Co., Ltd.		279		6,134
King Yuan Electronics Co., Ltd.		40,000		35,346
Kinsus Interconnect Technology Corp.		15,000		29,067
Koh Young Technology, Inc.		1,153		42,501
LEENO Industrial, Inc.		1,458		54,832
Lextar Electronics Corp.*		8,000		3,869
Macronix International*		61,000		6,809
MediaTek, Inc.		59,000		420,736
Motech Industries, Inc.*		5,000		4,728
Nanya Technology Corp.		19,897		23,257
Neo Solar Power Corp.		27,480		14,740
Novatek Microelectronics Corp.		13,000		45,546
Orient Semiconductor Electronics Ltd.*		34,000		13,019
Parade Technologies Ltd.		2,400		22,324
Phison Electronics Corp.		4,000		33,423
Pixart Imaging, Inc.		12,000		26,156
Powertech Technology, Inc.		24,000		48,665
Radiant Opto-Electronics Corp.		17,330		25,012

See Accompanying Notes to the Financial Statements.


142		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Semiconductors & Semiconductor Equipment – (continued)
Realtek Semiconductor Corp.		17,070	$	47,844
Semiconductor Manufacturing International Corp.*		944,000		77,884
Seoul Semiconductor Co., Ltd.		252		3,406
Shunfeng International Clean Energy Ltd.*		252,000		47,754
ShunSin Technology Holding Ltd.		10,000		27,284
Sigurd Microelectronics Corp.		224,000		164,599
Silergy Corp.		1,000		13,332
Silicon Works Co., Ltd.		384		10,751
Siliconware Precision Industries Co., Ltd.		73,000		108,415
Sino-American Silicon Products, Inc.*		27,000		28,797
Sitronix Technology Corp.		14,000		40,976
SK Hynix, Inc.		33,394		825,032
Sunplus Technology Co., Ltd.		40,000		15,502
Taiwan Semiconductor Manufacturing Co., Ltd.		649,000		3,018,324
Taiwan Surface Mounting Technology Corp.		236,000		196,465
Topco Scientific Co., Ltd.		87,327		158,122
United Microelectronics Corp.		708,000		263,417
Vanguard International Semiconductor Corp.		30,000		45,996
Win Semiconductors Corp.		31,604		59,773
Winbond Electronics Corp.*		91,000		23,644
Wonik IPS Co., Ltd.* ^		2,519		24,540
XinTec, Inc.		14,000		10,939
Xinyi Solar Holdings Ltd.(a)		120,000		47,491
				8,637,875
Software – 0.3%
Asseco Poland S.A.		2,616		39,653
Brogent Technologies, Inc.		4,389		36,810
CD Projekt Red S.A.*		10,537		70,204
Com2uSCorp*		169		19,193
Cyient Ltd.		1,968		13,633


	Shares		Value
Software – (continued)
Gamevil, Inc.*		528	$	39,574
Hancom, Inc.		2,553		47,838
JoyCity Corp.*		758		19,692
Kingdee International Software Group Co., Ltd.(a)		118,000		38,485
Kingsoft Corp. Ltd.(a)		23,000		53,133
NCSoft Corp.		655		131,644
Neowiz Games Corp.*		1,456		19,104
NetDragon Websoft, Inc.		4,500		14,039
Nexon GT Co., Ltd.*		1,023		10,864
NHN Entertainment Corp.*		720		38,231
Oracle Financial Services Software Ltd.		797		43,357
Sinosoft Technology Group Ltd.		32,000		17,491
Soft-World International Corp.		16,000		29,318
TOTVS S.A.		3,800		30,955
Webzen, Inc.*		474		9,672
WeMade Entertainment Co., Ltd.*		1,023		23,613
X-Legend Entertainment Co., Ltd.		1,250		2,197
XPEC Entertainment, Inc.		8,185		26,012
				774,712
Specialty Retail – 1.4%
Ace Hardware Indonesia Tbk PT		199,900		14,021
Baoxin Auto Group Ltd.		669,000		424,313
Berjaya Auto Bhd		54,880		30,907
Cashbuild Ltd.		1,168		28,584
China Harmony New Energy Auto Holding Ltd.		22,000		13,698
China Yongda Automobiles Services Holdings Ltd.		413,000		220,950
China ZhengTong Auto Services Holdings Ltd.		649,000		266,052
Cia Hering		112,100		465,838
The Foschini Group Ltd.		7,734		83,253
GOME Electrical Appliances Holding Ltd.(a)		553,447		71,346
Hengdeli Holdings Ltd.		1,888,000		197,143

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			143

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Specialty Retail – (continued)
Home Product Center PCL (NVDR)		142,065	$	32,740
Hotai Motor Co., Ltd.		8,000		79,124
Hotel Shilla Co., Ltd.		1,121		72,116
Italtile Ltd.		364,089		324,787
Kolao Holdings		1,207		10,858
The LEADCORP Inc.		697		5,139
LOTTE Himart Co., Ltd.		381		18,859
M.Video PAO		60,068		277,669
Mr Price Group Ltd.		6,844		87,273
National Petroleum Co., Ltd.		27,000		30,765
PC Jeweller Ltd.		1,509		8,204
Pou Sheng International Holdings Ltd.*		1,610,000		431,702
PTG Energy PCL (NVDR)		26,300		11,219
Senao International Co., Ltd.		18,000		24,054
Seobu T&D*		1,777		36,261
Shinsegae International Inc.		150		10,229
Super Group Ltd.*		8,832		25,623
Truworths International Ltd.		16,943		127,018
Zhongsheng Group Holdings Ltd.		477,500		245,607
				3,675,352
Technology Hardware, Storage & Peripherals – 4.7%
Acer, Inc.*		53,858		19,203
Adlink Technology, Inc.		13,223		27,305
Advantech Co., Ltd.		7,292		51,548
Asia Vital Components Co., Ltd.		236,000		185,856
Asustek Computer, Inc.		39,000		342,805
Casetek Holdings Ltd.		4,000		18,045
Catcher Technology Co., Ltd.		24,000		168,915
Chicony Electronics Co., Ltd.		21,326		51,244
Clevo Co.		39,322		34,442
CMC Magnetics Corp.*		1,458,301		148,303
Compal Electronics, Inc.		239,000		140,793
Coolpad Group Ltd.*		2,374,000		471,299
Elitegroup Computer Systems Co., Ltd.		247,530		151,958
Ennoconn Corp.		4,000		51,096
Foxconn Technology Co., Ltd.		34,678		71,607


	Shares		Value
Technology Hardware, Storage & Peripherals – (continued)
Gigabyte Technology Co., Ltd.		38,000	$	40,647
HTC Corp.		40,000		102,192
IEI Integration Corp.		20,034		21,834
Inventec Corp.		160,000		105,913
KONA I Co., Ltd.		1,686		30,334
Legend Holdings Corp., Class H* (b)		23,600		57,074
Lenovo Group Ltd.(a)		236,000		187,712
Lite-On Technology Corp.		132,973		162,026
Micro-Star International Co., Ltd.		38,000		60,677
Mitac Holdings Corp.		17,000		12,123
Pegatron Corp.		103,000		218,116
Primax Electronics Ltd.		9,000		10,604
Qisda Corp.		83,000		26,377
Quanta Computer, Inc.		81,000		130,593
Ritek Corp.*		297,000		25,968
Samsung Electronics Co., Ltd.		6,844		7,478,304
Samsung Electronics Co., Ltd. (Preference)		1,180		1,080,165
Sindoh Co., Ltd.		3,894		167,120
Spigen Korea Co., Ltd.		52		2,469
TCL Communication Technology Holdings Ltd.		413,000		268,334
Transcend Information, Inc.		3,000		8,436
TSC Auto ID Technology Co., Ltd.		3,300		29,569
Wistron Corp.		185,232		109,693
				12,270,699
Textiles, Apparel & Luxury Goods – 1.4%
361 Degrees International Ltd.		649,000		233,423
Agabang&Company*		1,971		15,949
Aksa Akrilik Kimya Sanayii A/S		1,536		5,360
Alpargatas S.A. (Preference)		10,800		29,200
ANTA Sports Products Ltd.(a)		32,000		81,844
Arvind Ltd.		5,232		21,877
Bata India Ltd.		2,024		17,826
Belle International Holdings Ltd.		177,000		108,611
Billion Industrial Holdings Ltd.		70,000		43,134

See Accompanying Notes to the Financial Statements.


144		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Textiles, Apparel & Luxury Goods – (continued)
Bosideng International Holdings Ltd.		2,242,000	$	182,084
C.banner International Holdings Ltd.*		9,000		3,631
CCC S.A.		506		22,520
China Dongxiang Group Co., Ltd.		96,000		19,801
China Lilang Ltd.		17,000		10,892
Cosmo Lady China Holdings Co., Ltd.(b)		15,000		11,660
Eclat Textile Co., Ltd.		6,528		74,584
Everest Textile Co., Ltd.		23,000		10,982
Feng TAY Enterprise Co., Ltd.		10,824		46,648
Fila Korea Ltd.		342		31,216
Formosa Taffeta Co., Ltd.		33,000		30,286
Forus S.A.		11,442		34,545
Fuguiniao Co., Ltd., Class H		318,600		163,054
Grendene S.A.		6,274		30,799
Handsome Co., Ltd.		910		35,421
Hansae Co., Ltd.		432		19,526
Hansae Yes24 Holdings Co., Ltd.		504		9,245
HOSA International Ltd.(a)		120,000		38,364
Ilshin Spinning Co., Ltd.		122		15,205
Kyungbang Ltd.		102		15,577
Lao Feng Xiang Co., Ltd., Class B		158,194		601,295
Lealea Enterprise Co., Ltd.		73,150		20,775
LF Corp.		952		21,515
Li Ning Co., Ltd.*		88,500		38,562
Li Peng Enterprise Co., Ltd.*		472,000		115,465
LPP S.A.		22		32,428
Luthai Textile Co., Ltd., Class B		212,400		282,572
Makalot Industrial Co., Ltd.		7,392		39,535
Nan Liu Enterprise Co., Ltd.		6,000		27,532
Nien Hsing Textile Co., Ltd.		171,546		126,055
Page Industries Ltd.		129		24,435
Peak Sport Products Co., Ltd.		590,000		164,286
Pou Chen Corp.		71,000		89,595
Rajesh Exports Ltd.		4,307		38,444
Relaxo Footwears Ltd.		3,920		28,793


	Shares		Value
Textiles, Apparel & Luxury Goods – (continued)
Ruentex Industries Ltd.		39,140	$	54,730
Shenzhou International Group Holdings Ltd.(a)		14,000		72,552
SRF Ltd.		774		15,924
Tainan Spinning Co., Ltd.		48,555		19,646
Taiwan Paiho Ltd.		8,000		24,085
Texhong Textile Group Ltd.		236,000		231,217
TOPBI International Holdings Ltd.		18,000		66,412
Toung Loong Textile Manufacturing		7,000		18,643
Vardhman Textiles Ltd.		11,741		155,148
Welspun India Ltd.		10,560		15,912
XTEP International Holdings Ltd.		48,000		28,402
Youngone Corp.		640		25,670
Youngone Holdings Co., Ltd.		315		17,776
				3,760,668
Thrifts & Mortgage Finance – 0.5%
Dewan Housing Finance Corp. Ltd.		124,608		372,528
GRUH Finance Ltd.		2,738		10,621
Housing Development Finance Corp. Ltd.		52,156		855,860
Indiabulls Housing Finance Ltd.		9,971		104,212
LIC Housing Finance Ltd.		10,865		75,726
Malaysia Building Society Bhd*		16,430		5,467
				1,424,414
Tobacco – 0.4%
British American Tobacco Malaysia Bhd		2,100		24,663
Eastern Tobacco		425		8,610
Godfrey Phillips India Ltd.		9,617		131,242
Gudang Garam Tbk PT		13,000		68,263
ITC Ltd.		63,602		311,586
KT&G Corp.		4,484		484,055
				1,028,419

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			145

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Trading Companies & Distributors – 0.3%
Adani Enterprises Ltd.		6,485	$	8,476
AKR Corporindo Tbk PT		54,500		26,861
Barloworld Ltd.		12,051		69,957
China Aircraft Leasing Group Holdings Ltd.		10,500		11,018
CITIC Resources Holdings Ltd.*		486,000		43,856
Hyundai Corp.		5,723		133,858
iMarketKorea, Inc.		1,530		22,761
Invicta Holdings Ltd.		46,905		179,606
LG International Corp.		2,006		66,726
Posco Daewoo Corp.		1,687		36,793
Sam Yung Trading Co., Ltd.		1,244		23,037
SK Networks Co., Ltd.		3,140		18,712
Yinson Holdings Bhd		89,500		63,233
				704,894
Transportation Infrastructure – 1.2%
Adani Ports & Special Economic Zone Ltd.		26,196		94,073
Airports of Thailand PCL		5,400		60,601
Airports of Thailand PCL (NVDR)		11,000		123,447
Arteris S.A.*		52,288		152,282
Bangkok Aviation Fuel Services PCL (NVDR)		18,800		19,241
Bangkok Expressway & Metro PCL (NVDR)		431,812		73,555
Beijing Capital International Airport Co., Ltd., Class H		54,000		58,127
CCR S.A.		38,400		178,380
China Merchants Holdings International Co., Ltd.		48,463		144,317
DP World Ltd.		5,133		97,014
EcoRodovias Infraestrutura e Logistica S.A.		780		1,693
Gateway Distriparks Ltd.		6,142		25,793
Grupo Aeroportuario del Centro Norte Sab de CV		4,800		27,899
Grupo Aeroportuario del Pacifico SAB de CV, Class B		12,900		122,077
Grupo Aeroportuario del Sureste SAB de CV, Class B*		5,900		91,005
Gujarat Pipavav Port Ltd.*		12,586		32,371


	Shares		Value
Transportation Infrastructure – (continued)
Hopewell Highway Infrastructure Ltd.(a)		19,000	$	9,479
International Container Terminal Services, Inc.*		39,170		54,301
Jasa Marga Persero Tbk PT		34,500		14,257
Jiangsu Expressway Co., Ltd., Class H		40,000		52,699
Malaysia Airports Holdings Bhd		9,916		17,007
Novorossiysk Commercial Sea Port PJSC		2,154,680		132,913
OHL Mexico SAB de CV*		40,600		66,319
Promotora y Operadora de Infraestructura SAB de CV		6,415		81,713
Promotora y Operadora de Infraestructura SAB de CV, Class L		2,300		24,181
Sebang Co., Ltd.		9,322		140,722
Shenzhen Expressway Co., Ltd., Class H		590,000		524,803
Shenzhen International Holdings Ltd.		32,162		52,655
Sociedad Matriz SAAM S.A.		144,912		11,256
TAV Havalimanlari Holding A/S		7,462		43,555
Tianjin Port Development Holdings Ltd.		1,192,400		181,384
Westports Holdings Bhd		27,200		28,896
Yuexiu Transport Infrastructure Ltd.(a)		590,000		396,264
Zhejiang Expressway Co., Ltd., Class H		32,000		32,754
				3,167,033
Water Utilities – 0.3%
Aguas Andinas S.A., Class A		64,290		37,261
Beijing Enterprises Water Group Ltd.*		140,000		83,922
China Everbright Water Ltd.*		8,500		4,111
China Water Affairs Group Ltd.		30,000		14,851
Cia de Saneamento Basico do Estado de Sao Paulo		16,600		126,564
CT Environmental Group Ltd.		157,600		46,118
Eastern Water Resources Development and Management PCL (NVDR)		23,200		8,369

See Accompanying Notes to the Financial Statements.


146		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Water Utilities – (continued)
Guangdong Investment Ltd.		72,000	$	102,099
Inversiones Aguas Metropolitanas S.A.		1,920		3,130
Kangda International Environmental Co., Ltd.* (b)		102,000		23,142
Manila Water Co., Inc.		661,800		391,681
TTW PCL (NVDR)		42,200		12,444
				853,692
Wireless Telecommunication Services – 2.4%
Advanced Info Service PCL (NVDR)		35,444		158,296
America Movil SAB de CV		1,020,700		724,592
Axiata Group Bhd		100,300		145,065
Bharti Airtel Ltd.		46,728		256,148
Bharti Infratel Ltd.		16,756		94,718
China Mobile Ltd.		182,617		2,094,026
DiGi.Com Bhd		82,600		93,035
Empresa Nacional de Telecomunicaciones S.A.		4,993		43,572
Far EasTone Telecommunications Co., Ltd.		41,000		92,543
Global Telecom Holding SAE*		101,412		33,804
Globe Telecom, Inc.		1,360		63,638
Idea Cellular Ltd.		54,579		97,548
Intouch Holdings PCL (NVDR)		35,900		54,215
Maxis Bhd		62,508		89,606
MegaFon PJSC		8,941		102,289
Mobile TeleSystems PJSC		53,320		208,557
MTN Group Ltd.		50,150		527,148
Orascom Telecom Media and Technology Holding SAE*		1,938,150		161,513
Philippine Long Distance Telephone Co.		2,360		86,422
Reliance Communications Ltd.*		62,990		53,370
Sistema JSFC		287,406		86,423
SK Telecom Co., Ltd.		2,250		406,793
Taiwan Mobile Co., Ltd.		46,200		152,553
Tim Participacoes S.A.		21,600		48,072
Total Access Communication PCL (NVDR)		38,000		36,716


	Shares		Value
Wireless Telecommunication Services – (continued)
Tower Bersama Infrastructure Tbk PT*		55,500	$	24,935
Turkcell Iletisim Hizmetleri A/S*		30,210		130,817
Vodacom Group Ltd.(a)		15,930		185,915
Vodafone Qatar QSC		6,402		21,106
XL Axiata Tbk PT*		165,500		44,174
				6,317,609
Total Common Stocks (Cost $264,029,034)				257,969,590
	Principal Amount
CORPORATE BOND – 0.0%^†
Independent Power and Renewable Electricity Producers – 0.0%^†
NTPC Ltd., Series 54 8.49%, due 03/25/2025		INR49,126		9,183
Total Corporate Bond (Cost $–)				9,183
	No. of Rights
RIGHTS – 0.0%^†
Banpu PCL, expiring 05/31/2016 at 5.00 THB* ^		6,900		1,541
Cia de Gas de Sao Paulo – COMGAS, expiring 05/27/2016 at 38.12 BRL* ^		55		34
Cia de Transmissao de Energia Eletrica Paulista, expiring 05/05/2016 at 45.40 BRL*^		95		162
Curro Holdings Ltd., expiring 05/13/2016 at 33.00 ZAR*		1,353		649
Hanjin Kal Corp., expiring 06/09/2016 at 15950.00 KRW* ^		193		644

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			147

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)


	No. of Rights		Value
Renova Energia S.A., expiring 05/11/2016 at 6.66 BRL*		826	$	9
True Corp. PCL, expiring 06/21/2016 at 7.15 THB* ^		93,783		805
Usinas Siderurgicas de Minas Gerais S.A., expiring 05/23/2016 at 5.00 BRL*		2,778		64
Total Rights (Cost $2,850)				3,908
	No. of Warrants
WARRANTS – 0.0%^†
Thoresen Thai Agencies PCL, expiring 02/28/2019 at 18.38 THB*		6,335		265
Total Warrants (Cost $–)				265
	Principal Amount
SECURITIES LENDING REINVESTMENTS(c) – 0.6%
MONEY MARKET FUNDS(d) – 0.2%
BlackRock Cash Funds – Prime, Institutional Class
0.46%	$	100,000		100,000
BlackRock Liquidity Funds, TempFund, Institutional Class
0.42%		100,000		100,000
Dreyfus Cash Advantage Fund, Institutional Class
0.37%		100,000		100,000
Fidelity Money Market Portfolio, Institutional Class
0.38%		100,000		100,000
Fidelity Prime Money Market Portfolio, Institutional Class
0.44%		100,000		100,000


	Principal Amount		Value
Morgan Stanley Liquidity Funds – Prime, Institutional Class
0.39%	$	100,000	$	100,000
Total Money Market Funds (Cost $600,000)				600,000

REPURCHASE AGREEMENTS – 0.4%
Citigroup Global Markets, Inc., 0.31%, dated 04/29/2016, due 05/02/2016, repurchase price $796,809, collateralized by various U.S. Treasury Securities, ranging from 0.00% – 6.63%, maturing 11/15/2026 – 02/15/2046; U.S. Government Agency Mortgage Securities, ranging from 2.00% – 8.00%, maturing 07/20/2026 – 04/20/2046; total market value $812,807		796,788		796,788
Credit Suisse Securities USA LLC, 0.44%, dated 04/29/2016, due 05/02/2016, repurchase price $200,007, collateralized by various Common Stocks; total market value $222,225		200,000		200,000
Total Repurchase Agreements (Cost $996,788)				996,788
Total Securities Lending Reinvestments (Cost $1,596,788)				1,596,788
Total Investment Securities (Cost $265,628,672) – 99.7%				259,579,734
Other assets less liabilities – 0.3%				868,883
NET ASSETS – 100.0%			$	260,448,617

See Accompanying Notes to the Financial Statements.


148		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)

*	Non-income producing security.

^	Security fair valued in accordance with procedures adopted by the Board of Trustees. At 04/30/2016, the value of these securities amounted to $1,505,702 or 0.58% of net assets.

^†	Amount represents less than 0.05%.

^(a)

The security or a portion of this security is on loan at 04/30/2016. The total value of securities on loan at 04/30/2016 was $9,750,728, which was collateralized in the form of cash with a value of $1,596,788; $1,726,397 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 8.88%, and maturity dates ranging from 05/15/2016 – 11/15/2045 and $7,184,620 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 8.25%, and maturity dates ranging from 06/08/2016 – 07/22/2068; a total value of $10,507,805.

^(b)

^(c)

The security was purchased with cash collateral held from securities on loan at 04/30/2016. The total value of securities purchased was $1,596,788.

^(d)

Represents 7-day effective yield as of 04/30/2016.

Percentages shown are based on Net Assets.

Abbreviations:

ADR – American Depositary Receipt

BRL – Brazilian Real

GDR – Global Depositary Receipt

HKD – Hong Kong Dollar

INR – Indian Rupee

KRW – Korean Won

NVDR – Non-Voting Depositary Receipt

PJSC – Public Joint Stock Company

REIT – Real Estate Investment Trust

RUB – Russian Ruble

THB – Thai Baht

TWD – Taiwan Dollar

USD – US Dollar

ZAR – South African Rand

As of April 30, 2016, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:



Aggregate gross unrealized appreciation	$	22,694,524
Aggregate gross unrealized depreciation		(31,547,070	)
Net unrealized depreciation	$	(8,852,546	)
Federal income tax cost of investments	$	268,432,280

Futures Contracts

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund had the following open long futures contracts as of April 30, 2016:


	Number of Contracts		Expiration Date		Notional Amount at Value		Unrealized Appreciation
Mini MSCI Emerging Markets Index Futures Contracts		59		06/17/2016	$	2,473,280	$	110,648

Forward Foreign Currency Contracts

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund had the following outstanding contracts as of April 30, 2016:

Contracts to Receive

Counterparty

In Exchange For

Receipt Date

Unrealized
Appreciation
(Depreciation)

HKD

262,204

Societe Generale

USD 33,819

06/15/2016

)

INR

6,383,957

Bank of New York

USD 93,890

06/15/2016

1,541

KRW

97,043,122

Morgan Stanley

USD 80,330

06/15/2016

4,783

RUB

329,028

Citibank N.A.

USD 4,481

06/15/2016

545

TWD

2,028,890

Morgan Stanley

USD 61,645

06/15/2016

1,288

ZAR

26,054

Bank of New York

USD 1,655

06/15/2016

166

USD

70,444

Morgan Stanley

BRL 265,588

06/15/2016

(5,424

)

2,895

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			149

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund (cont.)

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund invested, as a percentage of net assets, in companies domiciled in the following countries as of April 30, 2016:


Brazil	6.2	%
Chile	1.2
China	24.5
Colombia	0.9
Czech Republic	0.1
Egypt	0.3
Hungary	0.2
India	7.7
Indonesia	2.5
Malaysia	2.5
Mexico	3.4
Morocco	0.3
Peru	0.8
Philippines	2.0
Poland	1.2
Qatar	0.6
Russia	4.0
South Africa	6.0
South Korea	16.6
Taiwan	12.6
Thailand	2.5
Turkey	2.0
United Arab Emirates	1.0
Other¹	0.9
	100.0	%

¹	Includes any non-equity securities, securities lending reinvestments and net other assets (liabilities).

See Accompanying Notes to the Financial Statements.


150		FLEXSHARES SEMIANNUAL REPORT

Schedule of Investments

FlexShares^® Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund

April 30, 2016 (Unaudited)


	Shares		Value
EXCHANGE TRADED FUND – 101.6%
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund^‡		52,100	$	2,889,466
Total Investment Securities (Cost $2,924,969) – 101.6%				2,889,466
Liabilities in excess of other assets – (1.6%)				(46,670	)
NET ASSETS – 100.0%			$	2,842,796

^‡	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.

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

As of April 30, 2016, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:



Aggregate gross unrealized appreciation	$	—
Aggregate gross unrealized depreciation		(37,336	)
Net unrealized depreciation	$	(37,336	)
Federal income tax cost of investments	$	2,926,802

The FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund currently seeks its investment objective by investing a substantial portion of its assets in an affiliated FlexShares Fund. The Schedule of Investments of the affiliated FlexShares Fund is located elsewhere in this Report.

Investment in a company which was affiliated for the period ending April 30, 2016, was as follows:


Security	Value November 9, 2015*		Purchases at Cost		Sales at Cost		Value April 30, 2016		Dividend Income		Realized Loss
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund	$	—	$	3,117,020	$	192,051	$	2,889,466	$	72,129	$	(11,791	)

*	Commencement of investment operations.

Forward Foreign Currency Contracts

FlexShares^® Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund had the following outstanding contracts as of April 30, 2016:


Contracts to Receive		Counterparty	In Exchange For			Receipt Date		Unrealized Appreciation (Depreciation)
USD	182,297	The Toronto-Dominion Bank		AUD	237,000		05/24/2016	$	1,591
USD	246,984	The Toronto-Dominion Bank		CAD	318,000		05/24/2016		(6,887	)
USD	161,591	The Toronto-Dominion Bank		CHF	156,000		05/24/2016		(1,310	)
USD	37,849	The Toronto-Dominion Bank		DKK	249,000		05/24/2016		(493	)
USD	698,828	The Toronto-Dominion Bank		EUR	618,000		05/24/2016		(9,436	)
USD	483,446	The Toronto-Dominion Bank		GBP	341,000		05/24/2016		(16,112	)
USD	92,737	The Toronto-Dominion Bank		HKD	719,000		05/24/2016		28
USD	28,110	The Toronto-Dominion Bank		ILS	106,000		05/24/2016		(297	)
USD	764,829	The Toronto-Dominion Bank		JPY	83,091,000		05/24/2016		(12,133	)
USD	28,248	The Toronto-Dominion Bank		NOK	233,000		05/24/2016		(685	)
USD	13,099	The Toronto-Dominion Bank		NZD	19,000		05/24/2016		(171	)
USD	71,805	The Toronto-Dominion Bank		SEK	583,000		05/24/2016		(921	)
USD	48,574	The Toronto-Dominion Bank		SGD	66,000		05/24/2016		(502	)
								$	(47,328	)

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			151

Schedule of Investments

FlexShares^® Currency Hedged Morningstar EM Factor Tilt Index Fund

April 30, 2016 (Unaudited)


	Shares		Value
EXCHANGE TRADED FUND – 100.8%
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund^‡		621,135	$	27,373,419
Total Investment Securities (Cost $24,386,467) – 100.8%				27,373,419
Liabilities in excess of other assets – (0.8%)				(216,522	)
NET ASSETS – 100.0%			$	27,156,897

^‡	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.

Abbreviations:

BRL – Brazilian Real

CLP – Chilean Peso

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

TRY – Turkish Lira

TWD – Taiwan Dollar

USD – US Dollar

ZAR – South African Rand

As of April 30, 2016, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:



Aggregate gross unrealized appreciation	$	2,965,574
Aggregate gross unrealized depreciation		—
Net unrealized appreciation	$	2,965,574
Federal income tax cost of investments	$	24,407,845

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, 2016, was as follows:


Security	Value November 9, 2015*		Purchases at Cost		Sales at Cost		Value April 30, 2016		Dividend Income		Realized Loss
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund	$	—	$	25,793,413	$	1,406,946	$	27,373,419	$	71,518	$	(64,816	)

*	Commencement of investment operations.

Forward Foreign Currency Contracts

FlexShares^® Currency Hedged Morningstar EM Factor Tilt Index Fund had the following outstanding contracts as of April 30, 2016:


Contracts to Receive		Counterparty	In Exchange For			Receipt Date		Unrealized Appreciation (Depreciation)
USD	72,583	Citibank N.A.		BRL	260,000		05/25/2016	$	(2,200	)
USD	1,568,232	Citibank N.A.		BRL	5,600,000		05/25/2016		(42,476	)
USD	328,019	Citibank N.A.		CLP	219,510,000		05/25/2016		(3,690	)
USD	14,982	Citibank N.A.		CLP	10,060,000		05/25/2016		(219	)
USD	297,869	The Toronto-Dominion Bank		HKD	2,310,000		05/25/2016		10
USD	6,514,729	The Toronto-Dominion Bank		HKD	50,510,000		05/25/2016		1,827
USD	30,453	Citibank N.A.		IDR	404,220,000		05/25/2016		(98	)
USD	332,197	Citibank N.A.		IDR	4,410,075,000		05/25/2016		(1,113	)
USD	332,196	Citibank N.A.		IDR	4,410,075,000		05/25/2016		(1,112	)
USD	2,032,951	Citibank N.A.		INR	136,040,000		05/25/2016		(9,072	)
USD	92,976	Citibank N.A.		INR	6,230,000		05/25/2016		(539	)
USD	4,437,293	Citibank N.A.		KRW	5,094,900,000		05/25/2016		(32,921	)

See Accompanying Notes to the Financial Statements.


152		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Currency Hedged Morningstar EM Factor Tilt Index Fund (cont.)


Contracts to Receive		Counterparty	In Exchange For			Receipt Date		Unrealized Appreciation (Depreciation)
USD	203,243	Citibank N.A.		KRW	233,500,000		05/25/2016	$	(1,628	)
USD	862,751	The Toronto-Dominion Bank		MXN	15,210,000		05/25/2016		(23,201	)
USD	39,658	The Toronto-Dominion Bank		MXN	700,000		05/25/2016		(1,116	)
USD	703,487	Citibank N.A.		MYR	2,750,000		05/25/2016		841
USD	33,223	Citibank N.A.		MYR	130,000		05/25/2016		7
USD	24,675	Citibank N.A.		PHP	1,160,000		05/25/2016		(34	)
USD	549,441	Citibank N.A.		PHP	25,410,000		05/25/2016		8,198
USD	315,536	The Toronto-Dominion Bank		PLN	1,200,000		05/25/2016		1,559
USD	15,282	The Toronto-Dominion Bank		PLN	60,000		05/25/2016		(417	)
USD	1,016,044	Citibank N.A.		RUB	68,350,000		05/25/2016		(33,891	)
USD	46,814	Citibank N.A.		RUB	3,130,000		05/25/2016		(1,266	)
USD	510,390	The Toronto-Dominion Bank		TRY	1,470,000		05/25/2016		(12,498	)
USD	24,396	The Toronto-Dominion Bank		TRY	70,000		05/25/2016		(503	)
USD	159,068	Citibank N.A.		TWD	5,150,000		05/25/2016		(641	)
USD	3,478,395	Citibank N.A.		TWD	112,460,000		05/25/2016		(9,142	)
USD	70,584	The Toronto-Dominion Bank		ZAR	1,030,000		05/25/2016		(1,700	)
USD	1,527,174	The Toronto-Dominion Bank		ZAR	22,480,000		05/25/2016		(50,421	)
								$	(217,456	)

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			153

Schedule of Investments

FlexShares^® US Quality Large Cap Index Fund

April 30, 2016 (Unaudited)


	Shares		Value
COMMON STOCKS – 99.8%
Aerospace & Defense – 2.0%
General Dynamics Corp.		279	$	39,205
L-3 Communications Holdings, Inc.		138		18,151
Spirit AeroSystems Holdings, Inc., Class A*		411		19,379
				76,735
Air Freight & Logistics – 0.5%
Expeditors International of Washington, Inc.		429		21,283
Airlines – 1.9%
Alaska Air Group, Inc.		51		3,592
Delta Air Lines, Inc.		447		18,626
JetBlue Airways Corp.*		834		16,505
Southwest Airlines Co.		429		19,138
United Continental Holdings, Inc.*		357		16,354
				74,215
Auto Components – 1.0%
The Goodyear Tire & Rubber Co.		645		18,686
Lear Corp.		189		21,759
				40,445
Automobiles – 1.2%
Ford Motor Co.		3,426		46,457
Banks – 4.7%
Bank of America Corp.		5,688		82,817
CIT Group, Inc.		462		15,971
Citigroup, Inc.		1,755		81,222
Wells Fargo & Co.		36		1,799
				181,809
Beverages – 0.6%
Dr. Pepper Snapple Group, Inc.		258		23,455
Biotechnology – 3.0%
Amgen, Inc.		252		39,892
Gilead Sciences, Inc.		762		67,216
United Therapeutics Corp.*		66		6,943
				114,051


	Shares		Value
Building Products – 0.6%
Masco Corp.		780	$	23,954
Chemicals – 3.6%
Celanese Corp.		237		16,756
The Dow Chemical Co.		1,188		62,501
LyondellBasell Industries N.V., Class A		405		33,481
The Sherwin-Williams Co.		90		25,858
				138,596
Commercial Services & Supplies – 0.2%
Cintas Corp.		105		9,427
Communications Equipment – 2.0%
Cisco Systems, Inc.		2,751		75,625
Consumer Finance – 2.2%
Capital One Financial Corp.		531		38,439
Santander Consumer USA Holdings, Inc.*		1,848		24,338
Synchrony Financial*		681		20,818
				83,595
Containers & Packaging – 0.3%
Sealed Air Corp.		219		10,372
Diversified Consumer Services – 0.3%
H&R Block, Inc.		579		11,719
Diversified Financial Services – 0.8%
Berkshire Hathaway, Inc., Class B*		48		6,983
Voya Financial, Inc.		714		23,184
				30,167
Diversified Telecommunication Services – 1.3%
AT&T, Inc.		1,290		50,078
Electric Utilities – 2.7%
Exelon Corp.		834		29,265
FirstEnergy Corp.		654		21,314
NextEra Energy, Inc.		453		53,264
				103,843
Energy Equipment & Services – 0.6%
National Oilwell Varco, Inc.		699		25,192

See Accompanying Notes to the Financial Statements.


154		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® US Quality Large Cap Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Food & Staples Retailing – 4.3%
CVS Health Corp.		690	$	69,345
Sysco Corp.		585		26,951
Wal-Mart Stores, Inc.		1,014		67,806
				164,102
Food Products – 1.9%
Archer-Daniels-Midland Co.		609		24,324
Bunge Ltd.		396		24,750
Tyson Foods, Inc., Class A		342		22,510
				71,584
Health Care Equipment & Supplies – 1.1%
Baxter International, Inc.		621		27,461
Hologic, Inc.*		492		16,526
				43,987
Health Care Providers & Services – 4.8%
Aetna, Inc.		282		31,660
Anthem, Inc.		255		35,897
Cardinal Health, Inc.		318		24,950
Centene Corp.*		474		29,369
Express Scripts Holding Co.*		714		52,643
UnitedHealth Group, Inc.		81		10,666
				185,185
Hotels, Restaurants & Leisure – 3.0%
Carnival Corp.		498		24,427
Darden Restaurants, Inc.		339		21,103
McDonald’s Corp.		570		72,099
				117,629
Household Durables – 0.8%
Dr. Horton, Inc.		564		16,954
Toll Brothers, Inc.*		471		12,858
				29,812
Household Products – 0.6%
The Clorox Co.		177		22,166
Independent Power and Renewable Electricity Producers – 0.5%
NRG Energy, Inc.		1,281		19,343


	Shares		Value
Industrial Conglomerates – 0.6%
General Electric Co.		765	$	23,524
Insurance – 4.7%
Aflac, Inc.		282		19,449
American International Group, Inc.		1,140		63,635
Arch Capital Group Ltd.*		288		20,301
Everest Re Group Ltd.		111		20,524
Loews Corp.		516		20,475
The Travelers Cos., Inc.		324		35,608
				179,992
Internet Software & Services – 2.1%
Alphabet, Inc., Class A*		15		10,618
Alphabet, Inc., Class C*		42		29,107
eBay, Inc.*		765		18,689
VeriSign, Inc.*		255		22,032
				80,446
IT Services – 4.1%
Accenture PLC, Class A		585		66,058
Amdocs Ltd.		351		19,845
Total System Services, Inc.		420		21,479
Vantiv, Inc., Class A*		195		10,635
The Western Union Co.		1,074		21,480
Xerox Corp.		2,091		20,074
				159,571
Machinery – 2.1%
Dover Corp.		348		22,864
Illinois Tool Works, Inc.		339		35,432
Stanley Black & Decker, Inc.		219		24,510
				82,806
Media – 2.0%
Discovery Communications, Inc., Class A*		696		19,008
Discovery Communications, Inc., Class C*		753		20,165
Liberty Braves Group, Class C*		52		776
Liberty Media Group, Class C*		130		2,340
Liberty SiriusXM Group, Class C*		522		16,714
News Corp., Class A		1,338		16,618
				75,621

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			155

FlexShares^® US Quality Large Cap Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Metals & Mining – 1.5%
Newmont Mining Corp.		891	$	31,158
Nucor Corp.		504		25,089
				56,247
Multiline Retail – 1.7%
Kohl’s Corp.		354		15,682
Target Corp.		618		49,131
				64,813
Multi-Utilities – 1.8%
Consolidated Edison, Inc.		339		25,289
Public Service Enterprise Group, Inc.		567		26,156
SCANA Corp.		285		19,577
				71,022
Oil, Gas & Consumable Fuels – 5.4%
Chevron Corp.		174		17,779
Exxon Mobil Corp.		1,032		91,229
HollyFrontier Corp.		633		22,535
Marathon Petroleum Corp.		675		26,379
Tesoro Corp.		288		22,951
Valero Energy Corp.		489		28,787
				209,660
Pharmaceuticals – 5.7%
Johnson & Johnson		765		85,741
Merck & Co., Inc.		810		44,420
Pfizer, Inc.		2,760		90,280
				220,441
Professional Services – 0.5%
ManpowerGroup, Inc.		264		20,336
Real Estate Investment Trusts (REITs) – 2.3%
Digital Realty Trust, Inc.		273		24,018
Prologis, Inc.		573		26,020
Public Storage		153		37,456
				87,494
Real Estate Management & Development – 0.6%
Jones Lang LaSalle, Inc.		195		22,458


	Shares		Value
Semiconductors & Semiconductor Equipment – 3.8%
Intel Corp.		2,505	$	75,851
KLA-Tencor Corp.		312		21,821
Lam Research Corp.		279		21,316
NVIDIA Corp.		741		26,328
				145,316
Software – 2.8%
Activision Blizzard, Inc.		744		25,646
CA, Inc.		744		22,067
Citrix Systems, Inc.*		288		23,570
Microsoft Corp.		711		35,457
				106,740
Specialty Retail – 4.2%
Bed Bath & Beyond, Inc.*		387		18,274
Best Buy Co., Inc.		606		19,440
Foot Locker, Inc.		315		19,354
The Home Depot, Inc.		642		85,957
Staples, Inc.		2,028		20,686
				163,711
Technology Hardware, Storage & Peripherals – 5.0%
Apple, Inc.		1,617		151,578
HP, Inc.		1,842		22,601
NetApp, Inc.		855		20,212
				194,391
Textiles, Apparel & Luxury Goods – 0.5%
Michael Kors Holdings Ltd.*		387		19,992
Tobacco – 1.9%
Altria Group, Inc.		1,152		72,242
Total Common Stocks (Cost $3,800,397)				3,851,649

Total Investment Securities (Cost $3,800,397) – 99.8%				3,851,649
Other assets less liabilities – 0.2%				6,260
NET ASSETS – 100.0%			$	3,857,909

See Accompanying Notes to the Financial Statements.


156		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® US Quality Large Cap Index Fund (cont.)

*	Non-income producing security.

Percentages shown are based on Net Assets.

Abbreviation:

REIT – Real Estate Investment Trust

As of April 30, 2016, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:



Aggregate gross unrealized appreciation	$	178,001
Aggregate gross unrealized depreciation		(127,617	)
Net unrealized appreciation	$	50,384
Federal income tax cost of investments	$	3,801,265

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			157

Schedule of Investments

FlexShares^® Morningstar Global Upstream Natural Resources Index Fund

April 30, 2016 (Unaudited)


	Shares		Value
COMMON STOCKS – 98.9%
Building Products – 0.1%
Universal Forest Products, Inc.		31,218	$	2,392,860
Chemicals – 15.1%
Agrium, Inc.		272,448		23,516,747
CF Industries Holdings, Inc.		533,544		17,644,300
Incitec Pivot Ltd.		3,309,108		8,131,613
Israel Chemicals Ltd.		1,227,435		6,096,891
K+S AG (Registered)(a)		361,845		9,026,485
Monsanto Co.		820,182		76,834,650
The Mosaic Co.		722,271		20,216,365
Nufarm Ltd.		393,063		2,105,761
Potash Corp. of Saskatchewan, Inc.		1,875,918		33,247,150
The Scotts Miracle-Gro Co., Class A		87,978		6,227,083
Syngenta AG (Registered)		164,604		65,944,639
Tessenderlo Chemie N.V.*		69,531		2,389,916
Uralkali PJSC (GDR)* ^		250,823		3,168,127
Yara International ASA		334,884		13,408,086
				287,957,813
Diversified Financial Services – 0.1%
Metro Pacific Investments Corp.		15,041,400		1,860,626
Electric Utilities – 0.0%^†
Korea District Heating Corp.		4,257		263,774
Food Products – 9.3%
Archer-Daniels-Midland Co.		1,515,492		60,528,750
Bunge Ltd.		322,113		20,132,063
Charoen Pokphand Foods PCL (NVDR)		6,953,100		4,737,583
Charoen Pokphand Indonesia Tbk PT		12,771,000		3,597,533
CJ CheilJedang Corp.		18,447		6,152,238
Fresh Del Monte Produce, Inc.		72,369		3,130,683
Golden Agri-Resources Ltd.		16,034,700		4,772,055
GrainCorp Ltd., Class A(a)		393,063		2,456,722
IOI Corp. Bhd		5,676,000		6,422,097


	Shares		Value
Food Products – (continued)
Kuala Lumpur Kepong Bhd		851,400	$	5,213,231
Marine Harvest ASA*		676,863		10,532,445
PPB Group Bhd		993,300		4,114,065
Tyson Foods, Inc., Class A		489,555		32,222,510
Wilmar International Ltd.(a)		5,250,300		14,492,476
				178,504,451
Household Durables – 0.1%
Sumitomo Forestry Co., Ltd.		141,900		1,702,880
Metals & Mining – 36.6%
Agnico Eagle Mines Ltd.(a)		345,686		16,368,076
Alcoa, Inc.		2,107,215		23,537,592
Anglo American PLC(a)		3,714,942		41,544,369
AngloGold Ashanti Ltd.* (a)		849,981		13,546,230
Antofagasta PLC(a)		710,919		5,032,167
Barrick Gold Corp.		1,863,217		36,130,881
BHP Billiton Ltd.(a)		6,358,539		100,350,090
Boliden AB		481,041		8,394,660
First Quantum Minerals Ltd.(a)		1,567,995		13,381,659
Franco-Nevada Corp.		267,797		18,835,155
Freeport-McMoRan, Inc.		3,022,470		42,314,580
Glencore PLC* (a)		25,690,995		61,306,989
Goldcorp, Inc.		1,423,257		28,724,203
Grupo Mexico SAB de CV		7,804,500		19,938,113
KGHM Polska Miedz S.A.		343,398		6,684,925
Korea Zinc Co., Ltd.		24,123		10,490,562
Lonmin PLC*		2		5
Mitsubishi Materials Corp.		2,168,000		7,152,708
MMC Norilsk Nickel PJSC (ADR)		1,185,131		17,480,682
Newcrest Mining Ltd.*		1,235,949		17,892,778
Newmont Mining Corp.		828,696		28,979,499
Norsk Hydro ASA(a)		2,100,120		9,136,116
Randgold Resources Ltd.		156,090		15,480,027
Rio Tinto PLC		2,355,540		79,381,755
Royal Gold, Inc.		131,967		8,263,774
Silver Wheaton Corp.		663,173		13,918,903
South32 Ltd.*		11,610,258		14,708,211
Southern Copper Corp.		319,275		9,472,889

See Accompanying Notes to the Financial Statements.


158		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Global Upstream Natural Resources Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Metals & Mining – (continued)
Sumitomo Metal Mining Co., Ltd.		956,031	$	11,186,979
Vale S.A. (Preference)		4,257,000		19,454,298
				699,088,875
Multi-Utilities – 1.1%
Suez Environnement Co.(a)		414,348		7,640,633
Veolia Environnement S.A.(a)		559,086		13,738,691
				21,379,324
Oil, Gas & Consumable Fuels – 27.9%
Anadarko Petroleum Corp.		228,459		12,053,497
Apache Corp.		136,224		7,410,586
BP PLC		7,005,603		38,356,123
California Resources Corp.		27,868		61,311
Cameco Corp.		746,394		9,355,250
Canadian Natural Resources Ltd.		401,577		12,080,011
Cenovus Energy, Inc.		306,504		4,866,968
Chevron Corp.		664,092		67,856,921
China Petroleum & Chemical Corp., Class H		11,352,000		8,092,683
CNOOC Ltd.		5,676,000		7,068,293
Concho Resources, Inc.*		51,084		5,934,428
ConocoPhillips Co.		464,013		22,175,181
Devon Energy Corp.		156,090		5,413,201
Eni SpA		997,557		16,224,237
EOG Resources, Inc.		204,336		16,882,240
Exxon Mobil Corp.		1,045,803		92,448,985
Gazprom PAO (ADR)		2,074,238		10,719,662
Gazprom PAO (ADR)(OTC)		155,011		804,507
Hess Corp.		89,397		5,329,849
Lukoil PJSC (ADR)		166,023		7,036,885
Noble Energy, Inc.		158,928		5,738,890
Occidental Petroleum Corp.		285,219		21,862,036
PetroChina Co., Ltd., Class H		8,514,000		6,267,073
Pioneer Natural Resources Co.		49,665		8,249,357
Repsol S.A.(a)		404,728		5,305,389
Royal Dutch Shell PLC, Class A(a)		2,105,744		54,892,314
Sasol Ltd.(a)		224,202		7,342,306


	Shares		Value
Oil, Gas & Consumable Fuels – (continued)
Statoil ASA(a)		398,739	$	7,046,460
Suncor Energy, Inc.		554,829		16,313,549
TOTAL S.A.(a)		882,980		44,427,337
Woodside Petroleum Ltd.		255,420		5,524,140
				533,139,669
Paper & Forest Products – 1.9%
Boise Cascade Co.*		63,855		1,332,654
Canfor Corp.*		116,358		1,274,494
Dongwha Enterprise Co., Ltd.*		18,447		667,842
Duratex S.A.		443,290		1,010,981
Interfor Corp.*		103,587		902,231
Mondi PLC(a)		591,723		11,337,940
Stella-Jones, Inc.(a)		63,855		2,445,413
UPM-Kymmene Oyj		783,288		14,964,277
West Fraser Timber Co., Ltd.		96,492		3,184,559
				37,120,391
Real Estate Investment Trusts (REITs) – 2.1%
Rayonier, Inc.		180,213		4,447,657
Weyerhaeuser Co.		1,087,338		34,925,296
				39,372,953
Trading Companies & Distributors – 1.5%
Marubeni Corp.(a)		3,689,400		20,209,892
Mitsui & Co., Ltd.		667,600		8,370,348
				28,580,240
Water Utilities – 3.1%
Aguas Andinas S.A., Class A		3,605,689		2,089,804
American States Water Co.		41,151		1,715,585
American Water Works Co., Inc.		205,755		14,970,734
Aqua America, Inc.		194,403		6,154,799
China Water Affairs Group Ltd.		1,166,334		577,363
Cia de Saneamento Basico do Estado de Sao Paulo		2,418		18,436
Cia de Saneamento Basico do Estado de Sao Paulo (ADR)		281,382		2,149,758
Guangdong Investment Ltd.		3,557,576		5,044,776
Pennon Group PLC(a)		473,946		5,637,582

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			159

FlexShares^® Morningstar Global Upstream Natural Resources Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Water Utilities – (continued)
Severn Trent PLC		295,152	$	9,628,839
TTW PCL (NVDR)		1,844,700		543,957
United Utilities Group PLC		844,305		11,619,946
				60,151,579
Total Common Stocks (Cost $2,279,980,946)				1,891,515,435
	Principal Amount
SECURITIES LENDING REINVESTMENTS(b) – 7.3%
BANK NOTE – 0.1%
Bank of America N.A., Charlotte 0.78%, due 09/06/2016	$	2,000,000		2,000,000
Total Bank Note (Cost $2,000,000)				2,000,000

CERTIFICATES OF DEPOSITS – 2.8%
Branch Banking & Trust Co. 0.56%, due 06/21/2016		3,000,000		3,000,000
Chiba Bank Ltd., New York Branch 0.61%, due 06/27/2016		3,000,000		3,000,000
Cooperatieve Rabobank UA, Netherlands 0.58%, due 05/02/2016		3,000,000		3,000,000
Credit Industriel et Commercial, New York 0.82%, due 08/22/2016		2,000,000		1,999,880
Credit Suisse AG, New York 0.63%, due 05/03/2016		3,000,000		3,000,000
0.87%, due 07/22/2016		2,000,000		1,999,918
1.00%, due 09/07/2016		1,000,000		1,001,990
DZ Bank AG, New York 0.60%, due 05/18/2016		1,000,000		1,000,000
KBC Bank N.V., Brussels 0.70%, due 05/03/2016		3,000,000		2,999,942
Landesbank Baden-Wuerttemberg, New York 0.55%, due 05/12/2016		5,000,000		5,000,000


	Principal Amount		Value
CERTIFICATES OF DEPOSITS – (continued)
Mitsubishi UFJ Trust & Banking Corp., New York 0.82%, due 09/02/2016	$	1,000,000	$	999,933
Mizuho Bank Ltd., New York 0.82%, due 08/05/2016		3,000,000		2,999,838
Mizuho Corporate Bank Ltd., London 0.72%, due 06/30/2016		3,000,000		2,997,720
Norinchukin Bank, New York 0.60%, due 06/13/2016		2,000,000		2,000,000
0.81%, due 09/16/2016		3,000,000		2,999,652
Societe Generale, New York 0.57%, due 07/05/2016		1,000,000		1,000,533
Standard Chartered Bank, New York 0.63%, due 06/17/2016		3,000,000		3,000,000
State Street Bank & Trust Co. 0.54%, due 05/20/2016		3,000,000		3,000,169
Sumitomo Mitsui Banking Corp., New York 0.84%, due 07/11/2016		2,000,000		1,999,920
Sumitomo Mitsui Trust Bank Ltd., New York 0.71%, due 08/01/2016		2,000,000		2,002,024
UBS AG, Stamford 0.82%, due 08/02/2016		2,700,000		2,699,857
Wells Fargo Bank San Francisco N.A. 0.79%, due 07/21/2016		2,000,000		1,999,914
Total Certificates of Deposits (Cost $53,696,578)				53,701,290

COMMERCIAL PAPERS – 0.8%
Abbey National Treasury Services PLC 0.63%, due 05/13/2016		3,000,000		2,999,422

See Accompanying Notes to the Financial Statements.


160		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Global Upstream Natural Resources Index Fund (cont.)


	Principal Amount		Value
SECURITIES LENDING REINVESTMENTS(b) – (continued)
COMMERCIAL PAPERS – (continued)
ABN Amro Funding USA LLC 0.62%, due 05/17/2016	$	3,000,000	$	2,999,225
0.62%, due 06/02/2016		2,000,000		1,998,932
Engie S.A. 0.70%, due 05/23/2016		3,000,000		2,998,775
Toyota Motor Credit Corp. 0.70%, due 08/23/2016		3,000,000		2,999,814
Total Commercial Papers (Cost $13,996,354)				13,996,168

MASTER DEMAND NOTE – 0.1%
Natixis Financial Products LLC 0.64%, due 05/02/2016		2,800,000		2,800,000
Total Master Demand Note (Cost $2,800,000)				2,800,000

MONEY MARKET FUNDS(c) – 1.2%
BlackRock Cash Funds – Prime, Institutional Class
0.46%		3,800,000		3,800,000
BlackRock Liquidity Funds, TempFund, Institutional Class
0.42%		3,800,000		3,800,000
Dreyfus Cash Advantage Fund, Institutional Class
0.37%		3,800,000		3,800,000
Fidelity Money Market Portfolio, Institutional Class
0.38%		3,800,000		3,800,000
Fidelity Prime Money Market Portfolio, Institutional Class
0.44%		3,800,000		3,800,000
Morgan Stanley Liquidity Funds – Prime, Institutional Class
0.39%		3,800,000		3,800,000
Total Money Market Funds (Cost $22,800,000)				22,800,000


	Principal Amount		Value
REPURCHASE AGREEMENTS – 2.1%
Citigroup Global Markets, Inc., 0.31%, dated 04/29/2016, due 05/02/2016, repurchase price $29,057,755, collateralized by various U.S. Treasury Securities, ranging from 0.00% – 6.63%, maturing 11/15/2026 – 02/15/2046; U.S. Government Agency Mortgage Securities, ranging from 2.00% – 8.00%, maturing 07/20/2026 – 04/20/2046; total market value $29,641,157	$	29,057,004	$	29,057,004
Credit Suisse Securities USA LLC, 0.44%, dated 04/29/2016, due 05/02/2016, repurchase price $12,000,440, collateralized by various Common Stocks; total market value $13,333,496		12,000,000		12,000,000
Total Repurchase Agreements (Cost $41,057,004)				41,057,004

TIME DEPOSIT – 0.2%
Shinkin Central Bank 0.75%, due 07/08/2016		3,000,000		3,000,000
Total Time Deposit (Cost $3,000,000)				3,000,000
Total Securities Lending Reinvestments (Cost $139,349,936)				139,354,462
Total Investment Securities (Cost $2,419,330,882) – 106.2%				2,030,869,897
Liabilities in excess of other assets – (6.2%)				(118,910,829	)
NET ASSETS – 100.0%			$	1,911,959,068

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			161

FlexShares^® Morningstar Global Upstream Natural Resources Index Fund (cont.)

*	Non-income producing security.

^	Security fair valued in accordance with procedures adopted by the Board of Trustees. At 04/30/2016, the value of these securities amounted to $3,168,127 or 0.17% of net assets.

^†	Amount represents less than 0.05%.

^(a)

The security or a portion of this security is on loan at 04/30/2016. The total value of securities on loan at 04/30/2016 was $291,958,192, which was collateralized in the form of cash with a value of $139,326,422; $33,231,647 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 7.63%, and maturity dates ranging from 05/15/2016 – 11/15/2045 and $132,993,119 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 8.25%, and maturity dates ranging from 06/08/2016 – 07/22/2068; a total value of $305,551,188.

^(b)

The security was purchased with cash collateral held from securities on loan at 04/30/2016. The total value of securities purchased was $139,354,462.

^(c)

Represents 7-day effective yield as of 04/30/2016.

Percentages shown are based on Net Assets.

Abbreviations:

ADR – American Depositary Receipt

AUD – Australian Dollar

BRL– Brazilian Real

CAD – Canadian Dollar

CHF – Swiss Franc

EUR – Euro

GBP – British Pound

GDR – Global Depositary Receipt

HKD – Hong Kong Dollar

INR – Indian Rupee

JPY – Japanese Yen

KRW – Korean Won

NVDR – Non-Voting Depositary Receipt

OTC – Over-the-counter

PJSC – Public Joint Stock Company

REIT – Real Estate Investment Trust

RUB – Russian Ruble

SGD – Singapore Dollar

USD – US Dollar

ZAR – South African Rand

As of April 30, 2016, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:



Aggregate gross unrealized appreciation	$	91,534,055
Aggregate gross unrealized depreciation		(482,886,778	)
Net unrealized depreciation	$	(391,352,723	)
Federal income tax cost of investments	$	2,422,222,620

Futures Contracts

FlexShares^® Morningstar Global Upstream Natural Resources Index Fund had the following open long futures contracts as of April 30, 2016:


	Number of Contracts		Expiration Date		Notional Amount at Value		Unrealized Appreciation (Depreciation)
E-mini S&P 500^® Index Futures Contracts		16		06/17/2016	$	1,647,280	$	51,158
EURO STOXX 50^® Index Futures Contracts		3		06/17/2016		102,291		4,267
FTSE 100^® Index Futures Contracts		53		06/17/2016		4,822,978		50,204
FTSE/JSE Top 40 Index Futures Contracts		24		06/15/2016		793,972		4,121
Hang Seng Index Futures Contract		1		05/30/2016		134,417		(2,514	)
Mini MSCI Emerging Markets Index Futures Contracts		69		06/17/2016		2,892,480		80,555
Russell 2000^® Mini Index Futures Contracts		9		06/17/2016		1,015,830		60,657
S&P Toronto Stock Exchange 60^® Index Futures Contracts		59		06/16/2016		7,665,384		313,827
SPI 200^® Index Futures Contracts		20		06/16/2016		1,996,019		46,395
							$	608,670

See Accompanying Notes to the Financial Statements.


162		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Morningstar Global Upstream Natural Resources Index Fund (cont.)

Forward Foreign Currency Contracts

FlexShares^® Morningstar Global Upstream Natural Resources Index Fund had the following outstanding contracts as of April 30, 2016:


Contracts to Receive		Counterparty	In Exchange For			Receipt Date		Unrealized Appreciation (Depreciation)
AUD	633,941	Citibank N.A.		USD	475,815		06/15/2016	$	7,087
GBP	634,120	Bank of New York		USD	909,503		06/15/2016		19,536
GBP	149,877	The Toronto-Dominion Bank		USD	213,862		06/15/2016		5,720
INR	317,242,033	Bank of New York		USD	4,665,736		06/15/2016		76,585
INR	26,949,662	Morgan Stanley		USD	400,000		06/15/2016		2,860
JPY	144,940,848	Morgan Stanley		USD	1,300,000		06/15/2016		56,243
RUB	3,582,804	Citibank N.A.		USD	48,789		06/15/2016		5,935
USD	600,000	Citibank N.A.		AUD	790,802		06/15/2016		(2,391	)
USD	309,851	Morgan Stanley		BRL	1,168,200		06/15/2016		(23,857	)
USD	31,016	Bank of Montreal		CAD	41,210		06/15/2016		(1,883	)
USD	1,235,224	Citibank N.A.		CHF	1,214,629		06/15/2016		(34,444	)
USD	1,110,000	The Toronto-Dominion Bank		EUR	980,583		06/15/2016		(14,625	)
USD	1,703,433	Morgan Stanley		EUR	1,527,975		06/15/2016		(48,993	)
USD	2,200,000	The Toronto-Dominion Bank		GBP	1,515,684		06/15/2016		(20,605	)
USD	593,737	Societe Generale		HKD	4,603,289		06/15/2016		70
USD	320,000	Morgan Stanley		INR	21,626,240		06/15/2016		(3,282	)
USD	470,000	The Toronto-Dominion Bank		JPY	53,183,790		06/15/2016		(27,652	)
USD	73,068	Bank of New York		JPY	8,289,751		06/15/2016		(4,501	)
USD	1,450,000	Morgan Stanley		JPY	161,596,802		06/15/2016		(62,096	)
USD	167,536	Morgan Stanley		KRW	202,391,300		06/15/2016		(9,976	)
USD	156,327	Societe Generale		SGD	215,523		06/15/2016		(3,867	)
USD	375,860	Bank of New York		ZAR	5,916,562		06/15/2016		(37,564	)
								$	(121,700	)

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			163

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, 2016:


Australia	7.9	%
Belgium	0.1
Brazil	1.2
Canada	12.3
Chile	0.1
China	1.4
Finland	0.8
France	3.4
Germany	0.5
Indonesia	0.2
Israel	0.3
Italy	0.8
Japan	2.5
Malaysia	0.8
Mexico	1.0
Norway	2.1
Philippines	0.1
Poland	0.4
Russia	2.1
Singapore	1.0
South Africa	1.1
South Korea	0.9
Spain	0.3
Sweden	0.4
Switzerland	3.5
Thailand	0.3
United Kingdom	17.5
United States	35.9
Other¹	1.1
	100.0	%

¹	Includes any non-equity securities, securities lending reinvestments and net other assets (liabilities).

See Accompanying Notes to the Financial Statements.


164		FLEXSHARES SEMIANNUAL REPORT

Schedule of Investments

FlexShares^® STOXX^® Global Broad Infrastructure Index Fund

April 30, 2016 (Unaudited)


	Shares		Value
COMMON STOCKS – 99.0%
Air Freight & Logistics – 3.3%
bpost S.A.		46,365	$	1,308,221
CTT-Correios de Portugal S.A.		70,531		651,755
Deutsche Post AG (Registered)		452,972		13,302,326
Oesterreichische Post AG* (a)		15,174		592,816
PostNL N.V.*		198,105		866,756
Royal Mail PLC(a)		388,061		2,767,883
Singapore Post Ltd.(a)		674,400		787,774
				20,277,531
Commercial Services & Supplies – 2.2%
China Everbright International Ltd.(a)		1,124,000		1,263,508
Clean Harbors, Inc.*		8,992		444,205
Cleanaway Co., Ltd.		40,000		217,034
Cleanaway Waste Management Ltd.		747,460		450,635
Daiseki Co., Ltd.(a)		17,800		340,711
Progressive Waste Solutions Ltd.		51,704		1,666,779
Republic Services, Inc.		41,026		1,931,094
Shanghai Youngsun Investment Co., Ltd.		56,200		145,839
Stericycle, Inc.*		14,612		1,396,323
Waste Connections, Inc.		21,075		1,417,926
Waste Management, Inc.		76,713		4,509,957
				13,784,011
Construction & Engineering – 0.1%
Fomento de Construcciones y Contratas S.A.*		82,614		717,424
Diversified Financial Services – 0.1%
Metro Pacific Investments Corp.		6,322,500		782,095
Diversified Telecommunication Services – 16.3%
AT&T, Inc.		747,179		29,005,489
BCE, Inc.		105,094		4,936,716
BT Group PLC		1,065,271		6,916,205
Cellnex Telecom SAU(b)		18,546		306,092
CenturyLink, Inc.		66,597		2,061,177
Chunghwa Telecom Co., Ltd.		579,304		1,957,776


	Shares		Value
Diversified Telecommunication Services – (continued)
Deutsche Telekom AG (Registered)		384,970	$	6,739,544
Infrastrutture Wireless Italiane SpA* (b)		28,943		148,379
Koninklijke KPN N.V.		407,731		1,604,127
Level 3 Communications, Inc.*		31,472		1,644,727
Nippon Telegraph & Telephone Corp.		169,000		7,682,752
SBA Communications Corp., Class A*		15,455		1,592,483
Telefonica S.A.		535,305		5,838,048
Telstra Corp. Ltd.		1,483,399		6,067,820
Verizon Communications, Inc.		494,279		25,178,572
				101,679,907
Electric Utilities – 14.0%
American Electric Power Co., Inc.		84,300		5,353,050
Duke Energy Corp.		118,301		9,319,753
Edison International		55,919		3,954,032
Enel SpA		1,870,617		8,480,059
Exelon Corp.		157,922		5,541,483
Iberdrola S.A.		1,536,227		10,916,047
Korea Electric Power Corp.		139,938		7,590,107
NextEra Energy, Inc.		79,242		9,317,274
PG&E Corp.		84,300		4,906,260
PPL Corp.		115,772		4,357,658
The Southern Co.		156,236		7,827,424
SSE PLC		268,355		5,936,010
Xcel Energy, Inc.		87,391		3,498,262
				86,997,419
Gas Utilities – 1.4%
APA Group		263,859		1,761,935
Enagas S.A.		60,696		1,849,531
Korea Gas Corp.		12,926		470,232
Petronas Gas Bhd		168,600		948,631
Snam SpA		647,986		3,955,770
				8,986,099

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			165

FlexShares^® STOXX^® Global Broad Infrastructure Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Health Care Providers & Services – 3.6%
Bangkok Dusit Medical Services PCL (NVDR)		4,496,200	$	3,063,543
Bumrungrad Hospital PCL (NVDR)		196,700		1,143,146
Community Health Systems, Inc.*		20,232		386,027
HCA Holdings, Inc.*		54,233		4,372,264
Healthscope Ltd.		506,081		1,050,507
HealthSouth Corp.		15,736		652,415
IHH Healthcare Bhd		1,405,000		2,355,753
Life Healthcare Group Holdings Ltd.		427,963		1,128,398
LifePoint Health, Inc.*		7,587		512,578
Netcare Ltd.		558,347		1,427,686
Ramsay Health Care Ltd.		64,630		3,203,489
RHOEN-KLINIKUM AG		16,017		497,794
Tenet Healthcare Corp.*		17,141		543,198
Universal Health Services, Inc., Class B		15,736		2,103,588
				22,440,386
Industrial Conglomerates – 0.1%
Beijing Enterprises Holdings Ltd.		165,500		866,202
Media – 5.4%
Charter Communications, Inc., Class A*		8,992		1,908,462
Comcast Corp., Class A		303,199		18,422,371
DISH Network Corp., Class A*		27,257		1,343,497
Liberty Braves Group, Class C*		1		12
Liberty Global PLC*		70,531		2,581,435
Liberty Media Group, Class C*		6,182		111,276
SES S.A. (FDR)		41,588		1,134,852
Sirius XM Holdings, Inc.*		248,685		982,306
Time Warner Cable, Inc.		34,563		7,331,158
				33,815,369
Multi-Utilities – 8.9%
Consolidated Edison, Inc.		50,299		3,752,305
Dominion Resources, Inc.		102,284		7,310,238
E.ON SE		533,900		5,509,025
Engie S.A.(a)		433,583		7,151,102
National Grid PLC		1,048,130		14,967,134


	Shares		Value
Multi-Utilities – (continued)
Public Service Enterprise Group, Inc.		86,829	$	4,005,422
Sempra Energy		40,464		4,181,954
Suez Environnement Co.(a)		152,302		2,808,469
Veolia Environnement S.A.(a)		242,784		5,966,049
				55,651,698
Oil, Gas & Consumable Fuels – 6.6%
Columbia Pipeline Group, Inc.		54,514		1,396,649
Enbridge, Inc.(a)		230,420		9,587,650
Inter Pipeline Ltd.(a)		89,639		1,920,018
Keyera Corp.(a)		46,084		1,486,711
Kinder Morgan, Inc.		341,415		6,063,530
Koninklijke Vopak N.V.		17,703		962,001
ONEOK, Inc.		35,968		1,300,243
Pembina Pipeline Corp.		100,329		3,018,841
Plains GP Holdings LP, Class A		38,778		383,902
Polskie Gornictwo Naftowe i Gazownictwo S.A.		434,426		577,749
Spectra Energy Corp.		115,491		3,611,404
TransCanada Corp.		189,394		7,877,557
Veresen, Inc.(a)		78,118		566,271
The Williams Cos., Inc.		128,698		2,495,454
				41,247,980
Real Estate Investment Trusts (REITs) – 2.4%
American Tower Corp.		51,423		5,393,244
Corrections Corp. of America		20,232		615,457
Crown Castle International Corp.		40,464		3,515,512
Digital Realty Trust, Inc.		17,703		1,557,510
DuPont Fabros Technology, Inc.		7,868		313,304
Equinix, Inc.		8,430		2,784,851
The GEO Group, Inc.		12,926		414,020
Keppel DC REIT		56,200		45,786
				14,639,684
Road & Rail – 17.9%
Aurizon Holdings Ltd.		988,839		3,222,281
Canadian National Railway Co.		326,803		20,157,113
Canadian Pacific Railway Ltd.		72,779		10,518,268
Central Japan Railway Co.		94,600		17,183,522

See Accompanying Notes to the Financial Statements.


166		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® STOXX^® Global Broad Infrastructure Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Road & Rail – (continued)
CSX Corp.		167,476	$	4,567,070
East Japan Railway Co.		181,100		16,628,127
Hankyu Hanshin Holdings, Inc.		562,000		3,650,544
Kansas City Southern		18,827		1,783,858
Keikyu Corp.		281,000		2,607,907
Keisei Electric Railway Co., Ltd.		149,000		2,120,912
MTR Corp. Ltd.(a)		656,841		3,251,520
Norfolk Southern Corp.		51,423		4,633,727
Tobu Railway Co., Ltd.(a)		485,000		2,547,502
Union Pacific Corp.		146,682		12,795,071
West Japan Railway Co.		89,500		5,586,065
				111,253,487
Transportation Infrastructure – 8.5%
Abertis Infraestructuras S.A.(a)		229,858		3,876,619
Aena S.A.* (b)		34,844		4,970,613
Aeroports de Paris		15,736		1,980,753
Airports of Thailand PCL (NVDR)		196,800		2,208,577
Atlantia SpA		220,866		6,152,203
Auckland International Airport Ltd.		437,236		1,880,284
CCR S.A.		421,500		1,957,994
China Merchants Holdings International Co., Ltd.		603,117		1,796,009
COSCO Pacific Ltd.(a)		784,435		835,280
Flughafen Zuerich AG (Registered)* (a)		1,686		1,548,798
Groupe Eurotunnel SE (Registered)		219,461		2,802,660
Grupo Aeroportuario del Pacifico SAB de CV, Class B		168,600		1,595,520
International Container Terminal Services, Inc.*		775,560		1,075,157
Japan Airport Terminal Co., Ltd.(a)		35,100		1,317,132
Jiangsu Expressway Co., Ltd., Class H		612,000		806,301
Macquarie Atlas Roads Group		205,973		765,507
Promotora y Operadora de Infraestructura SAB de CV		109,590		1,395,942


	Shares		Value
Transportation Infrastructure – (continued)
Shenzhen International Holdings Ltd.		421,500	$	690,075
Sydney Airport		1,053,469		5,474,932
Transurban Group		961,863		8,500,249
Westports Holdings Bhd		562,000		597,031
Westshore Terminals Investment Corp.(a)		26,695		390,856
				52,618,492
Water Utilities – 3.0%
Aguas Andinas S.A., Class A		1,212,234		702,593
American Water Works Co., Inc.		30,629		2,228,566
Aqua America, Inc.		29,786		943,025
Beijing Enterprises Water Group Ltd.*		2,248,000		1,347,548
Cia de Saneamento Basico do Estado de Sao Paulo		168,600		1,285,460
Guangdong Investment Ltd.		1,124,000		1,593,874
Pennon Group PLC(a)		195,014		2,319,689
Severn Trent PLC		112,962		3,685,196
United Utilities Group PLC		322,026		4,431,959
				18,537,910
Wireless Telecommunication Services – 5.2%
China Mobile Ltd.		702,500		8,055,403
KDDI Corp.		232,000		6,871,424
SoftBank Group Corp.		121,100		6,777,390
Vodafone Group PLC		3,225,318		10,356,692
				32,060,909
Total Common Stocks (Cost $588,598,272)				616,356,603
	Principal Amount
SECURITIES LENDING REINVESTMENTS(c) – 6.6%
CERTIFICATES OF DEPOSITS – 2.2%
Chiba Bank Ltd., New York Branch
0.61%, due 06/27/2016	$	1,000,000		1,000,000
Cooperatieve Rabobank UA, Netherlands
0.58%, due 05/02/2016		1,000,000		1,000,000

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			167

FlexShares^® STOXX^® Global Broad Infrastructure Index Fund (cont.)


	Principal Amount		Value
SECURITIES LENDING REINVESTMENTS(c) – (continued)
CERTIFICATES OF DEPOSITS – (continued)
Credit Suisse AG, New York
0.63%, due 05/03/2016	$	700,000	$	700,000
0.87%, due 07/22/2016		1,000,000		999,959
1.00%, due 09/07/2016		1,000,000		1,001,990
KBC Bank N.V., Brussels
0.70%, due 05/03/2016		1,000,000		999,981
Mizuho Corporate Bank Ltd., London
0.72%, due 06/30/2016		2,000,000		1,998,480
Norinchukin Bank, New York
0.60%, due 06/13/2016		2,000,000		2,000,000
Standard Chartered Bank, New York
0.63%, due 06/17/2016		1,000,000		1,000,000
Sumitomo Mitsui Banking Corp., New York
0.84%, due 07/11/2016		900,000		899,964
UBS AG, Stamford
0.82%, due 08/02/2016		500,000		499,974
Wells Fargo Bank San Francisco N.A.
0.79%, due 07/21/2016		1,000,000		999,957
Total Certificates of Deposits (Cost $13,097,625)				13,100,305

COMMERCIAL PAPERS – 0.3%
Abbey National Treasury Services PLC
0.63%, due 05/13/2016		700,000		699,865
ABN Amro Funding USA LLC
0.62%, due 05/17/2016		1,000,000		999,742
Total Commercial Papers (Cost $1,699,607)				1,699,607

MASTER DEMAND NOTE – 0.3%
Natixis Financial Products LLC
0.64%, due 05/02/2016		2,000,000		2,000,000
Total Master Demand Note (Cost $2,000,000)				2,000,000


	Principal Amount		Value
MONEY MARKET FUNDS(d) – 1.6%
BlackRock Cash Funds – Prime, Institutional Class
0.46%	$	2,500,000	$	2,500,000
BlackRock Liquidity Funds, TempFund, Institutional Class
0.42%		200,000		200,000
Dreyfus Cash Advantage Fund, Institutional Class
0.37%		2,500,000		2,500,000
Fidelity Prime Money Market Portfolio, Institutional Class
0.44%		2,500,000		2,500,000
Morgan Stanley Liquidity Funds – Prime, Institutional Class
0.39%		2,500,000		2,500,000
Total Money Market Funds (Cost $10,200,000)				10,200,000

REPURCHASE AGREEMENTS – 2.2%
Citigroup Global Markets, Inc., 0.31%, dated 04/29/2016, due 05/02/2016, repurchase price $8,912,541, collateralized by various U.S. Treasury Securities, ranging from 0.00% – 6.63%, maturing 11/15/2026 – 02/15/2046; U.S. Government Agency Mortgage Securities, ranging from 2.00% – 8.00%, maturing 07/20/2026 – 04/20/2046; total market value $9,091,480		8,912,310		8,912,310

See Accompanying Notes to the Financial Statements.


168		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® STOXX^® Global Broad Infrastructure Index Fund (cont.)


	Principal Amount		Value
SECURITIES LENDING REINVESTMENTS(c) – (continued)
REPURCHASE AGREEMENTS – (continued)
Credit Suisse Securities USA LLC, 0.44%, dated 04/29/2016, due 05/02/2016, repurchase price $5,000,183, collateralized by various Common Stocks; total market value $5,555,623	$	5,000,000	$	5,000,000
Total Repurchase Agreements (Cost $13,912,310)				13,912,310
Total Securities Lending Reinvestments (Cost $40,909,542)				40,912,222
Total Investment Securities (Cost $629,507,814) – 105.6%				657,268,825
Liabilities in excess of other assets – (5.6%)				(34,979,864	)
NET ASSETS – 100.0%			$	622,288,961

*	Non-income producing security.

^(a)

The security or a portion of this security is on loan at 04/30/2016. The total value of securities on loan at 04/30/2016 was $65,722,381, which was collateralized in the form of cash with a value of $40,906,610; $8,110,937 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 7.63%, and maturity dates ranging from 05/15/2016 – 11/15/2045 and $19,216,320 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 8.25%, and maturity dates ranging from 06/08/2016 – 07/22/2068; a total value of $68,233,867.

^(b)

Securities exempt from registration under 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)

The security was purchased with cash collateral held from securities on loan at 04/30/2016. The total value of securities purchased was $40,912,222.

^(d)

Represents 7-day effective yield as of 04/30/2016.

Percentages shown are based on Net Assets.

Abbreviations:

AUD – Australian Dollar

BRL – Brazilian Real

CAD – Canadian Dollar

CHF – Swiss Franc

EUR – Euro

FDR – Finnish Depositary Receipt

GBP – British Pound

HKD – Hong Kong Dollar

INR – Indian Rupee

JPY – Japanese Yen

KRW – Korean Won

NVDR – Non-Voting Depositary Receipt

REIT – Real Estate Investment Trust

RUB – Russian Ruble

SGD – Singapore Dollar

USD – US Dollar

ZAR – South African Rand

As of April 30, 2016, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:



Aggregate gross unrealized appreciation	$	47,353,019
Aggregate gross unrealized depreciation		(20,403,188	)
Net unrealized appreciation	$	26,949,831
Federal income tax cost of investments	$	630,318,994

Futures Contracts

FlexShares^® STOXX^® Global Broad Infrastructure Index Fund had the following open long futures contracts as of April 30, 2016:


	Number of Contracts		Expiration Date		Notional Amount at Value		Unrealized Appreciation (Depreciation)
E-mini S&P 500^® Index Futures Contracts		28		06/17/2016	$	2,882,740	$	56,829
EURO STOXX 50^® Index Futures Contracts		21		06/17/2016		716,039		(2,933	)
FTSE 100^® Index Futures Contracts		9		06/17/2016		818,996		9,768
Nikkei 225 Index Futures Contracts		12		06/09/2016		905,650		(29,246	)
S&P Toronto Stock Exchange 60^® Index Futures Contracts		4		06/16/2016		519,687		18,950
							$	53,368

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			169

FlexShares^® STOXX^® Global Broad Infrastructure Index Fund (cont.)

Forward Foreign Currency Contracts

FlexShares^® STOXX^® Global Broad Infrastructure Index Fund had the following outstanding contracts as of April 30, 2016:


Contracts to Receive		Counterparty	In Exchange For			Receipt Date		Unrealized Appreciation (Depreciation)
AUD	230,988	JPMorgan Chase & Co.		USD	180,000		06/15/2016	$	(4,045	)
BRL	359,000	Citibank N.A.		USD	97,862		06/15/2016		4,690
CHF	282,569	Citibank N.A.		USD	287,361		06/15/2016		8,013
EUR	353,834	Morgan Stanley		USD	394,465		06/15/2016		11,346
EUR	250,004	Bank of New York		USD	280,000		06/15/2016		6,728
GBP	90,358	Bank of New York		USD	130,000		06/15/2016		2,381
HKD	813,860	JPMorgan Chase & Co.		USD	105,032		06/15/2016		(72	)
INR	212,601,745	Bank of New York		USD	3,126,772		06/15/2016		51,324
JPY	45,050,193	Bank of New York		USD	397,087		06/15/2016		24,458
KRW	25,340,480	Morgan Stanley		USD	20,976		06/15/2016		1,249
RUB	262,159	Citibank N.A.		USD	3,570		06/15/2016		434
SGD	126,000	JPMorgan Chase & Co.		USD	92,509		06/15/2016		1,144
ZAR	1,468,444	Morgan Stanley		USD	95,050		06/15/2016		7,558
USD	323,697	Citibank N.A.		AUD	431,270		06/15/2016		(4,821	)
USD	95,220	Morgan Stanley		BRL	359,000		06/15/2016		(7,331	)
USD	27,645	Bank of Montreal		CAD	36,730		06/15/2016		(1,679	)
USD	220,000	Citibank N.A.		CHF	212,273		06/15/2016		(1,891	)
USD	400,000	The Toronto-Dominion Bank		EUR	353,363		06/15/2016		(5,270	)
USD	278,221	Bank of New York		GBP	193,980		06/15/2016		(5,976	)
USD	104,973	Societe Generale		HKD	813,860		06/15/2016		12
USD	3,155,539	Morgan Stanley		INR	212,601,745		06/15/2016		(22,558	)
USD	200,000	The Toronto-Dominion Bank		JPY	22,631,400		06/15/2016		(11,767	)
USD	21,884	Morgan Stanley		KRW	25,340,480		06/15/2016		(342	)
USD	3,806	Goldman Sachs & Co.		RUB	262,159		06/15/2016		(198	)
USD	91,393	Societe Generale		SGD	126,000		06/15/2016		(2,261	)
USD	93,285	Bank of New York		ZAR	1,468,444		06/15/2016		(9,323	)
								$	41,803

See Accompanying Notes to the Financial Statements.


170		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® STOXX^® Global Broad Infrastructure Index Fund (cont.)

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, 2016:


Australia	4.9	%
Austria	0.1
Belgium	0.2
Brazil	0.5
Canada	10.0
Chile	0.1
China	2.8
France	3.3
Germany	4.2
Hong Kong	0.5
Italy	3.0
Japan	11.8
Luxembourg	0.2
Malaysia	0.6
Mexico	0.5
Netherlands	0.6
New Zealand	0.3
Philippines	0.3
Poland	0.1
Portugal	0.1
Singapore	0.1
South Africa	0.4
South Korea	1.3
Spain	4.6
Switzerland	0.2
Taiwan	0.3
Thailand	1.0
United Kingdom	8.3
United States	38.7
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			171

Schedule of Investments

FlexShares^® Global Quality Real Estate Index Fund

April 30, 2016 (Unaudited)


	Shares		Value
COMMON STOCKS – 98.6%
Capital Markets – 0.2%
Tricon Capital Group, Inc.		63,294	$	432,538
Commercial Services & Supplies – 0.2%
McGrath RentCorp		16,764		408,706
Diversified Financial Services – 0.2%
Corp. Financiera Alba S.A.		7,062		289,729
Hotels, Restaurants & Leisure – 0.3%
Kyoritsu Maintenance Co., Ltd.		6,600		521,856
Household Durables – 0.5%
Iida Group Holdings Co., Ltd.(a)		52,800		1,031,869
Industrial Conglomerates – 1.0%
CK Hutchison Holdings Ltd.		66,000		791,265
Hopewell Holdings Ltd.		231,000		780,204
Shun Tak Holdings Ltd.		924,000		308,508
				1,879,977
Real Estate Investment Trusts (REITs) – 74.9%
Allied Properties Real Estate Investment Trust		19,536		551,331
Apple Hospitality REIT, Inc.		63,756		1,206,901
AvalonBay Communities, Inc.		48,774		8,622,755
Big Yellow Group PLC(a)		48,378		571,204
Brookfield Canada Office Properties		9,570		210,791
BWP Trust		228,426		610,132
Canadian Apartment Properties REIT		25,542		608,269
CapitaLand Retail China Trust		277,200		304,207
Charter Hall Retail REIT		162,030		588,589
Columbia Property Trust, Inc.		44,946		1,002,296
CoreSite Realty Corp.		10,560		791,261
Cousins Properties, Inc.		77,484		801,959
Derwent London PLC		40,194		1,933,625
Digital Realty Trust, Inc.		56,562		4,976,325
Duke Realty Corp.		133,122		2,911,378
DuPont Fabros Technology, Inc.		25,278		1,006,570
EPR Properties		22,242		1,465,303
Equity Lifestyle Properties, Inc.		30,624		2,097,438


	Shares		Value
Real Estate Investment Trusts (REITs) – (continued)
Equity Residential		117,744	$	8,014,834
Eurocommercial Properties N.V. (CVA)		15,312		715,885
Extra Space Storage, Inc.		42,306		3,593,895
First Real Estate Investment Trust		270,367		251,448
Fonciere des Murs S.C.A.		17,226		516,329
Fortune Real Estate Investment Trust		528,000		579,921
Frasers Centrepoint Trust		343,200		497,928
Frontier Real Estate Investment Corp.		169		859,255
General Growth Properties, Inc.		220,770		6,188,183
Getty Realty Corp.		23,958		471,493
Global One Real Estate Investment Corp.		132		553,932
Goodman Group		121,770		640,279
Goodman Property Trust(a)		429,066		402,033
The GPT Group		690,954		2,652,327
Granite Real Estate Investment Trust		15,774		470,727
Great Portland Estates PLC(a)		130,548		1,449,597
Grivalia Properties REIC AE		28,248		242,654
Growthpoint Properties Australia Ltd.(a)		102,828		253,468
H&R Real Estate Investment Trust		53,988		944,768
Host Hotels & Resorts, Inc.(a)		210,870		3,335,963
Investa Office Fund		218,724		696,053
Japan Logistics Fund, Inc.		330		737,446
Japan Rental Housing Investments, Inc.		462		365,731
Kimco Realty Corp.		159,456		4,483,903
Land Securities Group PLC(a)		304,194		5,044,348
Link REIT		858,000		5,215,116
LTC Properties, Inc.		13,266		615,410
Mapletree Commercial Trust(a)		514,800		574,532
Mapletree Greater China Commercial Trust		785,400		601,884
Mapletree Industrial Trust(a)		467,463		558,222
Mid-America Apartment Communities, Inc.		28,842		2,760,468
Monogram Residential Trust, Inc.		62,040		628,465
Mori Trust Sogo Reit, Inc.		396		782,414

See Accompanying Notes to the Financial Statements.


172		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Global Quality Real Estate Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Real Estate Investment Trusts (REITs) – (continued)
National Retail Properties, Inc.		50,820	$	2,223,883
Nomura Real Estate Master Fund, Inc.		1,386		2,200,864
Parkway Life Real Estate Investment Trust		257,400		469,201
Piedmont Office Realty Trust, Inc., Class A		54,978		1,094,612
Post Properties, Inc.		20,856		1,196,300
Precinct Properties New Zealand Ltd.(a)		566,280		504,863
Prologis, Inc.		201,036		9,129,045
PS Business Parks, Inc.		8,052		771,060
Public Storage		40,326		9,872,208
Pure Industrial Real Estate Trust		127,248		507,935
Ramco-Gershenson Properties Trust		30,822		545,858
Regency Centers Corp.		35,970		2,650,989
Retail Properties of America, Inc., Class A		92,070		1,472,199
RioCan Real Estate Investment Trust		60,216		1,311,426
Scentre Group(a)		2,050,224		7,338,107
Segro PLC		290,936		1,780,205
Shaftesbury PLC(a)		100,320		1,337,325
Shopping Centres Australasia Property Group		320,628		572,568
Simon Property Group, Inc.		23,892		4,806,354
Smart Real Estate Investment Trust		24,684		663,705
Societe Fonciere Lyonnaise S.A.		4,422		248,172
Sovran Self Storage, Inc.		13,068		1,388,083
Sunlight Real Estate Investment Trust		462,000		243,590
Terreis		4,554		160,129
Tritax Big Box REIT PLC		34,386		68,355
Unibail-Rodamco SE		7,524		2,016,522
Universal Health Realty Income Trust		8,580		468,468
Urstadt Biddle Properties, Inc., Class A		22,242		457,296
Vornado Realty Trust		9,042		865,591
Weingarten Realty Investors		44,946		1,659,406


	Shares		Value
Real Estate Investment Trusts (REITs) – (continued)
Workspace Group PLC(a)		45,540	$	557,041
				144,540,605
Real Estate Management & Development – 20.8%
Allreal Holding AG (Registered)* (a)		5,082		708,882
Alrov Properties and Lodgings Ltd.		8,646		192,517
CA Immobilien Anlagen AG*		28,644		547,228
Castellum AB		60,786		973,643
Conwert Immobilien Invest SE*		36,102		571,863
Daejan Holdings PLC(a)		2,772		228,211
Daibiru Corp.		52,800		477,690
Daikyo, Inc.		264,000		434,263
Daito Trust Construction Co., Ltd.		27,600		3,997,028
Deutsche Wohnen AG		28,908		885,521
Fabege AB		49,830		832,317
Far East Orchard Ltd.		204,600		251,935
First Capital Realty, Inc.		42,174		683,821
Frasers Centrepoint Ltd.		171,600		213,215
Goldcrest Co., Ltd.		26,400		390,837
GuocoLand Ltd.		151,800		208,943
Heiwa Real Estate Co., Ltd.		39,600		509,643
Henderson Land Development Co., Ltd.		462,000		2,888,542
HKR International Ltd.		422,400		173,704
Ho Bee Land Ltd.		138,600		227,898
Hongkong Land Holdings Ltd.(a)		448,800		2,849,880
Hufvudstaden AB, Class A		44,154		684,673
Hysan Development Co., Ltd.(a)		264,000		1,169,030
Intershop Holding AG		528		247,887
Kabuki-Za Co., Ltd.		5,000		233,188
Leopalace21 Corp.		92,400		576,016
Liu Chong Hing Investment Ltd.		396,000		447,192
Melcor Developments Ltd.		20,460		226,716
Mitsubishi Estate Co., Ltd.		74,000		1,466,928
Mobimo Holding AG (Registered)* (a)		2,376		544,608
Morguard Corp.		2,772		328,652
Nomura Real Estate Holdings, Inc.		46,200		873,955
NTT Urban Development Corp.(a)		52,800		515,194

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			173

FlexShares^® Global Quality Real Estate Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Real Estate Management & Development – (continued)
Olav Thon Eiendomsselskap ASA		12,078	$	208,491
Open House Co., Ltd.		26,400		592,177
PATRIZIA Immobilien AG*		18,810		435,836
PSP Swiss Property AG (Registered)(a)		15,708		1,514,261
Raysum Co., Ltd.		13,200		103,384
Relo Holdings, Inc.		4,400		586,009
Sagax AB, Class B		27,126		234,152
Sim Lian Group Ltd.		330,000		195,194
Soundwill Holdings Ltd.		165,000		216,109
Sponda Oyj		85,404		371,902
The St. Joe Co.*		31,284		527,135
Swire Pacific Ltd., Class A		198,000		2,153,006
Swire Pacific Ltd., Class B		330,000		644,073
Swire Properties Ltd.		158,400		412,479
TAI Cheung Holdings Ltd.		264,000		202,155
Takara Leben Co., Ltd.(a)		79,200		527,038
TOC Co., Ltd.		26,400		219,106
Tokyu Fudosan Holdings Corp.		198,000		1,402,720
The UNITE Group PLC		34,056		315,546
United Industrial Corp. Ltd.		112,200		242,089
UOL Group Ltd.*		184,800		844,219
Wheelock & Co., Ltd.(a)		330,000		1,531,480
Wihlborgs Fastigheter AB		9,834		199,807
Wing Tai Holdings Ltd.(a)		369,600		515,606
Yanlord Land Group Ltd.		541,200		487,223
				40,242,817
Road & Rail – 0.5%
Sotetsu Holdings, Inc.(a)		152,000		998,701
Total Common Stocks (Cost $175,320,099)				190,346,798
	Principal Amount
SECURITIES LENDING REINVESTMENTS(b) – 8.8%
CERTIFICATES OF DEPOSITS – 1.0%
Chiba Bank Ltd., New York Branch
0.61%, due 06/27/2016	$	300,000		300,000


	Principal Amount		Value
CERTIFICATES OF DEPOSITS – (continued)
Cooperatieve Rabobank UA, Netherlands
0.58%, due 05/02/2016	$	300,000	$	300,000
Credit Suisse AG, New York
0.63%, due 05/03/2016		400,000		400,000
Mizuho Corporate Bank Ltd., London
0.72%, due 06/30/2016		500,000		499,620
Norinchukin Bank, New York
0.60%, due 06/13/2016		400,000		400,000
Total Certificates of Deposits (Cost $1,899,411)				1,899,620

MASTER DEMAND NOTE – 0.2%
Natixis Financial Products LLC
0.64%, due 05/02/2016		400,000		400,000
Total Master Demand Note (Cost $400,000)				400,000

MONEY MARKET FUNDS(c) – 3.3%
BlackRock Cash Funds – Prime, Institutional Class
0.46%		1,300,000		1,300,000
Dreyfus Cash Advantage Fund, Institutional Class
0.37%		1,300,000		1,300,000
Fidelity Money Market Portfolio, Institutional Class
0.38%		1,300,000		1,300,000
Fidelity Prime Money Market Portfolio, Institutional Class
0.44%		1,300,000		1,300,000
Morgan Stanley Liquidity Funds – Prime, Institutional Class
0.39%		1,300,000		1,300,000
Total Money Market Funds (Cost $6,500,000)				6,500,000

See Accompanying Notes to the Financial Statements.


174		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Global Quality Real Estate Index Fund (cont.)


	Principal Amount		Value
SECURITIES LENDING REINVESTMENTS(b) – (continued)
REPURCHASE AGREEMENTS – 4.3%
Citigroup Global Markets, Inc., 0.31%, dated 04/29/2016, due 05/02/2016, repurchase price $5,976,738, collateralized by various U.S. Treasury Securities, ranging from 0.00% – 6.63%, maturing 11/15/2026 – 02/15/2046; U.S. Government Agency Mortgage Securities, ranging from 2.00% – 8.00%, maturing 07/20/2026 – 04/20/2046; total market value $6,096,735	$	5,976,585	$	5,976,585
Credit Suisse Securities USA LLC, 0.44%, dated 04/29/2016, due 05/02/2016, repurchase price $2,260,083, collateralized by various Common Stocks; total market value $2,511,142		2,260,000		2,260,000
Total Repurchase Agreements (Cost $8,236,585)				8,236,585
Total Securities Lending Reinvestments (Cost $17,035,996)				17,036,205
Total Investment Securities (Cost $192,356,095) – 107.4%				207,383,003
Liabilities in excess of other assets – (7.4%)				(14,363,999	)
NET ASSETS – 100.0%			$	193,019,004

*	Non-income producing security.

^(a)

The security or a portion of this security is on loan at 04/30/2016. The total value of securities on loan at 04/30/2016 was $25,246,823, which was collateralized in the form of cash with a value of $17,035,443; $1,747,188 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 7.63%, and maturity dates ranging from 05/15/2016 – 11/15/2045 and $7,399,203 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 8.25%, and maturity dates ranging from 06/08/2016 – 07/22/2068; a total value of $26,181,834.

^(b)

The security was purchased with cash collateral held from securities on loan at 04/30/2016. The total value of securities purchased was $17,036,205.

^(c)

Represents 7-day effective yield as of 04/30/2016.

Percentages shown are based on Net Assets.

Abbreviations:

AUD – Australian Dollar

CAD – Canadian Dollar

CHF – Swiss Franc

CVA – Dutch Certificate

EUR – Euro

GBP – British Pound

HKD – Hong Kong Dollar

ILS – Israeli Shekel

JPY – Japanese Yen

REIT – Real Estate Investment Trust

SEK – Swedish Krona

USD – US Dollar

As of April 30, 2016, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:



Aggregate gross unrealized appreciation	$	17,290,338
Aggregate gross unrealized depreciation		(2,458,246	)
Net unrealized appreciation	$	14,832,092
Federal income tax cost of investments	$	192,550,911

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			175

FlexShares^® Global Quality Real Estate Index Fund (cont.)

Futures Contracts

FlexShares^® Global Quality Real Estate Index Fund had the following open long futures contracts as of April 30, 2016:


	Number of Contracts		Expiration Date		Notional Amount at Value		Unrealized Appreciation (Depreciation)
E-mini S&P 500^® Index Futures Contracts		13		06/17/2016	$	1,338,415	$	27,409
EURO STOXX 50^® Index Futures Contracts		4		06/17/2016		136,388		(698	)
FTSE 100^® Index Futures Contract		1		06/17/2016		91,000		1,156
Hang Seng Index Futures Contracts		2		05/30/2016		268,834		(5,551	)
Nikkei 225 Index Futures Contracts		5		06/09/2016		377,354		(9,965	)
SPI 200^® Index Futures Contracts		3		06/16/2016		299,403		6,328
							$	18,679

Forward Foreign Currency Contracts

FlexShares^® Global Quality Real Estate Index Fund had the following outstanding contracts as of April 30, 2016:


Contracts to Receive		Counterparty	In Exchange For			Receipt Date		Unrealized Appreciation (Depreciation)
AUD	266,069	Bank of America		USD	200,000		06/15/2016	$	2,677
CHF	72,366	Citibank N.A.		USD	75,000		06/15/2016		645
GBP	15,704	Bank of New York		USD	22,525		06/15/2016		484
HKD	73,280	Societe Generale		USD	9,452		06/15/2016		(1	)
ILS	110,844	Citibank N.A.		USD	28,560		06/15/2016		1,160
JPY	33,048,000	Bank of America		USD	300,000		06/15/2016		9,237
SEK	339,770	Morgan Stanley		USD	40,848		06/15/2016		1,572
USD	153,630	Citibank N.A.		AUD	204,685		06/15/2016		(2,289	)
USD	52,721	Bank of Montreal		CAD	70,048		06/15/2016		(3,201	)
USD	100,000	Bank of America		CHF	95,671		06/15/2016		(6	)
USD	17,523	Citibank N.A.		CHF	17,231		06/15/2016		(489	)
USD	26,499	Morgan Stanley		EUR	23,769		06/15/2016		(762	)
USD	151,900	Bank of New York		JPY	17,233,324		06/15/2016		(9,356	)
USD	150,000	The Toronto-Dominion Bank		JPY	16,973,550		06/15/2016		(8,825	)
								$	(9,154	)

See Accompanying Notes to the Financial Statements.


176		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Global Quality Real Estate Index Fund (cont.)

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, 2016:


Australia	6.9	%
Austria	0.6
Canada	3.6
Finland	0.2
France	1.5
Germany	0.7
Greece	0.1
Hong Kong	10.4
Israel	0.1
Japan	10.8
Netherlands	0.4
New Zealand	0.5
Norway	0.1
Singapore	3.6
Spain	0.1
Sweden	1.5
Switzerland	1.6
United Kingdom	6.9
United States	49.0
Other¹	1.4
	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			177

Schedule of Investments

FlexShares^® Real Assets Allocation Index Fund

April 30, 2016 (Unaudited)


	Shares		Value
EXCHANGE TRADED FUNDS – 100.0%
FlexShares Global Quality Real Estate Index Fund^‡		8,818	$	513,344
FlexShares Global Upstream Natural Resources Index Fund^‡		4,942		133,385
FlexShares STOXX Global Broad Infrastructure Index Fund^‡		14,728		650,094
Total Exchange Traded Funds (Cost $1,249,795)				1,296,823

Total Investment Securities (Cost $1,249,795) – 100.0%				1,296,823
Other assets less liabilities – 0.0%^†				139
NET ASSETS – 100.0%			$	1,296,962

^†	Amount represents less than 0.05%.

^‡	Investment in affiliated Fund. Northern Trust Investments, Inc. is the Investment Adviser to both the Fund and the Underlying Funds.

Percentages shown are based on Net Assets.

As of April 30, 2016, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:



Aggregate gross unrealized appreciation	$	47,028
Aggregate gross unrealized depreciation		—
Net unrealized appreciation	$	47,028
Federal income tax cost of investments	$	1,249,795

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, 2016, was as follows:


Security	Value November 23, 2015*		Purchases at Cost		Sales at Cost		Value April 30, 2016		Dividend Income		Realized Loss
FlexShares Global Quality Real Estate Index Fund	$	—	$	1,014,584	$	512,840	$	513,344	$	12,313	$	(41,605	)
FlexShares Global Upstream Natural Resources Index Fund		—		247,010		125,931		133,385		10,605		(25,902	)
FlexShares STOXX Global Broad Infrastructure Index Fund		—		1,266,764		639,792		650,094		10,570		(67,139	)
		$—	$	2,528,358	$	1,278,563	$	1,296,823	$	33,488	$	(134,646	)

*	Commencement of investment operations.

See Accompanying Notes to the Financial Statements.


178		FLEXSHARES SEMIANNUAL REPORT

Schedule of Investments

FlexShares^® Quality Dividend Index Fund

April 30, 2016 (Unaudited)


	Shares		Value
COMMON STOCKS – 99.2%
Aerospace & Defense – 3.5%
The Boeing Co.		192,924	$	26,006,155
Lockheed Martin Corp.		78,288		18,192,566
				44,198,721
Air Freight & Logistics – 1.7%
United Parcel Service, Inc., Class B		202,710		21,298,740
Automobiles – 0.4%
Ford Motor Co.		387,246		5,251,056
Banks – 6.8%
Bank of America Corp.		155,877		2,269,569
Bank of Hawaii Corp.(a)		25,164		1,721,469
Citigroup, Inc.		30,057		1,391,038
Cullen/Frost Bankers, Inc.(a)		26,562		1,699,702
Hancock Holding Co.(a)		55,920		1,452,243
JPMorgan Chase & Co.		548,016		34,634,611
People’s United Financial, Inc.(a)		82,482		1,278,471
Wells Fargo & Co.		836,703		41,818,417
				86,265,520
Beverages – 1.6%
The Coca-Cola Co.		112,539		5,041,747
Dr. Pepper Snapple Group, Inc.(a)		75,492		6,862,978
PepsiCo, Inc.		79,686		8,204,470
				20,109,195
Biotechnology – 0.4%
Amgen, Inc.		35,649		5,643,237
Capital Markets – 3.1%
Artisan Partners Asset Management, Inc., Class A(a)		215,292		6,956,084
Federated Investors, Inc., Class B		239,058		7,554,233
Invesco Ltd.		240,456		7,456,541
LPL Financial Holdings, Inc.(a)		282,396		7,455,254


	Shares		Value
Capital Markets – (continued)
Virtu Financial, Inc., Class A		55,221	$	1,151,358
Waddell & Reed Financial, Inc., Class A(a)		250,941		5,104,140
WisdomTree Investments, Inc.(a)		276,804		3,014,396
				38,692,006
Chemicals – 1.4%
The Dow Chemical Co.		141,897		7,465,201
LyondellBasell Industries N.V., Class A(a)		118,131		9,765,890
				17,231,091
Commercial Services & Supplies – 0.8%
R.R. Donnelley & Sons Co.		436,176		7,589,462
Waste Management, Inc.(a)		46,134		2,712,218
				10,301,680
Communications Equipment – 1.7%
Cisco Systems, Inc.		522,852		14,373,202
Motorola Solutions, Inc.		87,375		6,569,726
				20,942,928
Consumer Finance – 0.7%
Navient Corp.(a)		610,227		8,341,803
Containers & Packaging – 1.4%
Avery Dennison Corp.		96,462		7,004,106
International Paper Co.(a)		50,328		2,177,692
Packaging Corp. of America(a)		30,756		1,995,449
Sonoco Products Co.		143,994		6,751,879
				17,929,126
Distributors – 0.6%
Genuine Parts Co.(a)		73,395		7,043,718
Diversified Consumer Services – 0.1%
H&R Block, Inc.(a)		61,512		1,245,003
Diversified Telecommunication Services – 2.0%
CenturyLink, Inc.(a)		227,874		7,052,700

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			179

FlexShares^® Quality Dividend Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Diversified Telecommunication Services – (continued)
Verizon Communications, Inc.		357,888	$	18,230,815
				25,283,515
Electric Utilities – 3.1%
American Electric Power Co., Inc.		60,114		3,817,239
Duke Energy Corp.(a)		85,278		6,718,201
Entergy Corp.		27,960		2,102,033
FirstEnergy Corp.		127,917		4,168,815
OGE Energy Corp.(a)		231,369		6,846,209
Pinnacle West Capital Corp.		94,365		6,855,617
PPL Corp.		81,783		3,078,312
The Southern Co.(a)		111,141		5,568,164
				39,154,590
Electrical Equipment – 1.1%
Eaton Corp. PLC		46,134		2,918,898
Emerson Electric Co.		199,914		10,921,302
				13,840,200
Energy Equipment & Services – 1.7%
Frank’s International N.V.		171,255		2,851,396
Helmerich & Payne, Inc.(a)		27,261		1,802,497
National Oilwell Varco, Inc.(a)		223,680		8,061,427
Noble Corp. PLC(a)		759,813		8,532,700
				21,248,020
Food & Staples Retailing – 0.1%
CVS Health Corp.		8,388		842,994
Wal-Mart Stores, Inc.(a)		8,388		560,906
				1,403,900
Food Products – 1.4%
Cal-Maine Foods, Inc.(a)		119,529		6,067,292
Flowers Foods, Inc.(a)		376,761		7,218,741
General Mills, Inc.(a)		72,696		4,459,172
				17,745,205
Gas Utilities – 0.6%
AGL Resources, Inc.		22,368		1,473,157


	Shares		Value
Gas Utilities – (continued)
Questar Corp.		245,349	$	6,150,899
				7,624,056
Health Care Equipment & Supplies – 0.0%^†
Abbott Laboratories		6,990		271,911
Health Care Providers & Services – 3.5%
Cardinal Health, Inc.		95,763		7,513,565
UnitedHealth Group, Inc.		276,804		36,449,551
				43,963,116
Hotels, Restaurants & Leisure – 1.8%
Cracker Barrel Old Country Store, Inc.		9,786		1,432,768
Darden Restaurants, Inc.(a)		101,355		6,309,349
McDonald’s Corp.		106,947		13,527,726
Six Flags Entertainment Corp.(a)		26,562		1,595,048
				22,864,891
Household Durables – 0.8%
Garmin Ltd.(a)		35,649		1,519,717
Leggett & Platt, Inc.		34,950		1,722,685
Tupperware Brands Corp.(a)		120,228		6,981,640
				10,224,042
Household Products – 1.5%
Kimberly-Clark Corp.		44,037		5,512,992
The Procter & Gamble Co.		174,750		14,000,970
				19,513,962
Independent Power and Renewable Electricity Producers – 0.6%
NRG Yield, Inc., Class A		496,290		7,508,868
Industrial Conglomerates – 2.4%
3M Co.		181,041		30,302,643
Insurance – 3.1%
AmTrust Financial Services, Inc.(a)		200,613		4,985,233
Cincinnati Financial Corp.(a)		28,659		1,891,780
Erie Indemnity Co., Class A		60,813		5,740,139
First American Financial Corp.(a)		39,144		1,409,967

See Accompanying Notes to the Financial Statements.


180		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Quality Dividend Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Insurance – (continued)
Mercury General Corp.(a)		24,465	$	1,294,198
MetLife, Inc.		97,860		4,413,486
Old Republic International Corp.		76,890		1,421,696
Principal Financial Group, Inc.		174,051		7,428,497
Prudential Financial, Inc.		58,017		4,504,440
Validus Holdings Ltd.		134,907		6,217,864
				39,307,300
Internet Software & Services – 0.4%
j2 Global, Inc.(a)		79,686		5,061,655
IT Services – 6.2%
Accenture PLC, Class A		76,191		8,603,488
Automatic Data Processing, Inc.(a)		58,017		5,131,023
Broadridge Financial Solutions, Inc.		25,863		1,547,642
International Business Machines Corp.		277,503		40,498,788
Leidos Holdings, Inc.		134,907		6,692,736
Paychex, Inc.(a)		42,639		2,222,345
The Western Union Co.(a)		343,908		6,878,160
Xerox Corp.		694,107		6,663,427
				78,237,609
Leisure Products – 0.2%
Hasbro, Inc.(a)		23,067		1,952,391
Machinery – 0.5%
Caterpillar, Inc.(a)		67,803		5,269,649
Cummins, Inc.(a)		10,485		1,227,060
				6,496,709
Media – 1.2%
Comcast Corp., Class A		47,532		2,888,044
Regal Entertainment Group, Class A(a)		67,803		1,413,693
Viacom, Inc., Class B(a)		182,439		7,461,755
The Walt Disney Co.		33,552		3,464,579
				15,228,071


	Shares		Value
Metals & Mining – 0.6%
Nucor Corp.(a)		155,178	$	7,724,761
Multiline Retail – 2.1%
Kohl’s Corp.(a)		143,994		6,378,934
Macy’s, Inc.		162,168		6,420,231
Target Corp.(a)		176,148		14,003,766
				26,802,931
Multi-Utilities – 2.0%
Ameren Corp.(a)		43,338		2,080,224
CenterPoint Energy, Inc.(a)		83,880		1,799,226
Consolidated Edison, Inc.		35,649		2,659,415
DTE Energy Co.		27,960		2,492,914
Public Service Enterprise Group, Inc.		167,760		7,738,769
SCANA Corp.(a)		27,960		1,920,572
Vectren Corp.		134,208		6,556,061
				25,247,181
Oil, Gas & Consumable Fuels – 7.9%
California Resources Corp.		1		2
Chevron Corp.		178,944		18,284,498
CVR Energy, Inc.(a)		215,991		5,244,261
Exxon Mobil Corp.		318,744		28,176,969
HollyFrontier Corp.(a)		198,516		7,067,170
Marathon Petroleum Corp.		111,141		4,343,390
Murphy Oil Corp.(a)		76,890		2,748,049
Occidental Petroleum Corp.		224,379		17,198,650
ONEOK, Inc.(a)		66,405		2,400,541
Spectra Energy Corp.(a)		85,278		2,666,643
Valero Energy Corp.(a)		151,683		8,929,578
Western Refining, Inc.(a)		40,542		1,084,904
The Williams Cos., Inc.		116,733		2,263,453
				100,408,108
Paper & Forest Products – 0.5%
Domtar Corp.(a)		176,148		6,806,359
Personal Products – 0.6%
Nu Skin Enterprises, Inc., Class A(a)		201,312		8,207,490
Pharmaceuticals – 7.3%
Eli Lilly & Co.		120,228		9,080,821
Johnson & Johnson		220,884		24,756,679

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			181

FlexShares^® Quality Dividend Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Pharmaceuticals – (continued)
Merck & Co., Inc.		739,542	$	40,556,483
Pfizer, Inc.		561,996		18,382,889
				92,776,872
Real Estate Investment Trusts (REITs) – 5.9%
CBL & Associates Properties, Inc.(a)		124,422		1,453,249
Chimera Investment Corp.(a)		97,860		1,389,612
Communications Sales & Leasing, Inc.		78,288		1,818,630
Corrections Corp. of America		203,409		6,187,702
EPR Properties(a)		98,559		6,493,067
The GEO Group, Inc.(a)		46,134		1,477,672
Hospitality Properties Trust		253,737		6,493,130
Iron Mountain, Inc.(a)		65,007		2,374,706
Lamar Advertising Co., Class A(a)		109,743		6,808,456
LaSalle Hotel Properties(a)		248,145		5,930,665
Liberty Property Trust		211,797		7,391,715
MFA Financial, Inc.		195,720		1,352,425
National Health Investors, Inc.(a)		22,368		1,523,037
Outfront Media, Inc.		63,609		1,379,679
RLJ Lodging Trust		311,754		6,568,657
Ryman Hospitality Properties, Inc.		113,937		5,871,173
Senior Housing Properties Trust		95,064		1,671,225
Ventas, Inc.(a)		40,542		2,518,469
Welltower, Inc.(a)		39,843		2,765,901
WP Carey, Inc.(a)		25,863		1,579,971
Xenia Hotels & Resorts, Inc.		143,994		2,214,628
				75,263,769
Semiconductors & Semiconductor Equipment – 3.1%
KLA-Tencor Corp.		97,860		6,844,329
Linear Technology Corp.(a)		40,542		1,803,308
Maxim Integrated Products, Inc.		49,629		1,772,748
QUALCOMM, Inc.		189,429		9,569,953
Texas Instruments, Inc.		310,356		17,702,706


	Shares		Value
Semiconductors & Semiconductor Equipment – (continued)
Xilinx, Inc.		43,338	$	1,867,001
				39,560,045
Software – 1.4%
Activision Blizzard, Inc.		227,874		7,854,817
Blackbaud, Inc.		21,669		1,338,494
CA, Inc.		220,185		6,530,687
Symantec Corp.		94,365		1,570,705
				17,294,703
Specialty Retail – 3.3%
American Eagle Outfitters, Inc.(a)		418,002		5,981,609
GameStop Corp., Class A(a)		207,603		6,809,378
The Home Depot, Inc.		161,469		21,619,084
Staples, Inc.		671,040		6,844,608
				41,254,679
Technology Hardware, Storage & Peripherals – 3.6%
Apple, Inc.		314,550		29,485,917
HP, Inc.(a)		683,622		8,388,042
Seagate Technology PLC(a)		55,221		1,202,161
Western Digital Corp.(a)		148,188		6,055,703
				45,131,823
Thrifts & Mortgage Finance – 0.1%
New York Community Bancorp, Inc.(a)		100,656		1,512,860
Tobacco – 4.4%
Altria Group, Inc.		253,038		15,868,013
Philip Morris International, Inc.		397,032		38,956,780
Vector Group Ltd.		54,522		1,177,675
				56,002,468
Total Common Stocks (Cost $1,160,688,883)				1,255,720,527

See Accompanying Notes to the Financial Statements.


182		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Quality Dividend Index Fund (cont.)


	Principal Amount		Value
SECURITIES LENDING REINVESTMENTS(b) – 16.6%
CERTIFICATES OF DEPOSITS – 7.4%
Branch Banking & Trust Co.
0.56%, due 06/21/2016	$	5,000,000	$	5,000,000
Chiba Bank Ltd., New York Branch
0.61%, due 06/27/2016		5,000,000		5,000,000
Cooperatieve Rabobank UA, Netherlands
0.58%, due 05/02/2016		5,000,000		5,000,000
Credit Industriel et Commercial, New York
0.82%, due 08/22/2016		4,000,000		3,999,760
Credit Suisse AG, New York
0.63%, due 05/03/2016		5,000,000		5,000,000
0.87%, due 07/22/2016		3,000,000		2,999,877
DZ Bank AG, New York
0.60%, due 05/18/2016		4,000,000		4,000,000
KBC Bank N.V., Brussels
0.70%, due 05/03/2016		4,000,000		3,999,922
Landesbank Baden-Wuerttemberg, New York
0.55%, due 05/12/2016		8,000,000		8,000,000
Mitsubishi UFJ Trust & Banking Corp., New York
0.82%, due 09/02/2016		2,000,000		1,999,866
Mizuho Bank Ltd., New York
0.82%, due 08/05/2016		3,000,000		2,999,838
Mizuho Corporate Bank Ltd., London
0.72%, due 06/30/2016		7,000,000		6,994,680
Norinchukin Bank, New York
0.60%, due 06/13/2016		5,100,000		5,100,000
0.81%, due 09/16/2016		4,000,000		3,999,536
Societe Generale, New York
0.57%, due 07/05/2016		3,000,000		3,001,599
Standard Chartered Bank, New York
0.63%, due 06/17/2016		6,000,000		6,000,000
State Street Bank & Trust Co.,
0.54%, due 05/20/2016		4,000,000		4,000,225
Sumitomo Mitsui Banking Corp., New York
0.84%, due 07/11/2016		3,000,000		2,999,880


	Principal Amount		Value
CERTIFICATES OF DEPOSITS – (continued)
Sumitomo Mitsui Trust Bank Ltd., New York
0.71%, due 08/01/2016	$	4,000,000	$	4,004,048
UBS AG, Stamford
0.82%, due 08/02/2016		3,800,000		3,799,799
Wells Fargo Bank San Francisco N.A.
0.79%, due 07/21/2016		4,000,000		3,999,828
Total Certificates of Deposits (Cost $91,891,902)				91,898,858

COMMERCIAL PAPERS – 1.3%
Abbey National Treasury Services PLC
0.63%, due 05/13/2016		4,000,000		3,999,230
ABN Amro Funding USA LLC
0.62%, due 05/17/2016		5,000,000		4,998,708
Engie S.A.
0.70%, due 05/23/2016		4,000,000		3,998,367
Toyota Motor Credit Corp.
0.70%, due 08/23/2016		4,000,000		3,999,752
Total Commercial Papers (Cost $16,996,305)				16,996,057

MASTER DEMAND NOTE – 0.5%
Natixis Financial Products LLC
0.64%, due 05/02/2016		6,500,000		6,500,000
Total Master Demand Note (Cost $6,500,000)				6,500,000

MONEY MARKET FUNDS(c) – 1.7%
BlackRock Cash Funds – Prime, Institutional Class 0.46%		3,000,000		3,000,000
BlackRock Liquidity Funds, TempFund, Institutional Class 0.42%		4,500,000		4,500,000
Dreyfus Cash Advantage Fund, Institutional Class 0.37%		4,000,000		4,000,000

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			183

FlexShares^® Quality Dividend Index Fund (cont.)


	Principal Amount		Value
SECURITIES LENDING REINVESTMENTS(b) – (continued)
MONEY MARKET FUNDS(c) – (continued)
Fidelity Money Market Portfolio, Institutional Class 0.38%	$	5,000,000	$	5,000,000
Fidelity Prime Money Market Portfolio, Institutional Class 0.44%		3,000,000		3,000,000
Morgan Stanley Liquidity Funds – Prime, Institutional Class 0.39%		3,000,000		3,000,000
Total Money Market Funds (Cost $22,500,000)				22,500,000

REPURCHASE AGREEMENTS – 5.3%
Citigroup Global Markets, Inc., 0.31%, dated 04/29/2016, due 05/02/2016, repurchase price $55,870,030, collateralized by various U.S. Treasury Securities, ranging from 0.00% – 6.63%, maturing 11/15/2026 – 02/15/2046; U.S. Government Agency Mortgage Securities, ranging from 2.00% – 8.00%, maturing 07/20/2026 – 04/20/2046; total market value $56,991,750		55,868,586		55,868,586


	Principal Amount		Value
REPURCHASE AGREEMENTS – (continued)
Credit Suisse Securities USA LLC, 0.44%, dated 04/29/2016, due 05/02/2016, repurchase price $12,000,440, collateralized by various Common Stocks; total market value $13,333,496	$	12,000,000	$	12,000,000
Total Repurchase Agreements (Cost $67,868,586)				67,868,586

TIME DEPOSIT – 0.4%
Shinkin Central Bank
0.75%, due 07/08/2016		5,000,000		5,000,000
Total Time Deposit (Cost $5,000,000)				5,000,000
Total Securities Lending Reinvestments (Cost $210,756,793)				210,763,501
Total Investment Securities (Cost $1,371,445,676) – 115.8%				1,466,484,028
Liabilities in excess of other assets – (15.8%)				(199,933,909	)
NET ASSETS – 100.0%			$	1,266,550,119

^†	Amount represents less than 0.05%.

^(a)

The security or a portion of this security is on loan at 04/30/2016. The total value of securities on loan at 04/30/2016 was $210,487,659, which was collateralized in the form of cash with a value of $210,724,143; $4,758,283 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 8.88%, and maturity dates ranging from 05/19/2016 – 05/15/2045; a total value of $215,482,426.

^(b)

The security was purchased with cash collateral held from securities on loan at 04/30/2016. The total value of securities purchased was $210,763,501.

^(c)

Represents 7-day effective yield as of 04/30/2016.

Percentages shown are based on Net Assets.

Abbreviation:

REIT – Real Estate Investment Trust

See Accompanying Notes to the Financial Statements.


184		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Quality Dividend Index Fund (cont.)

As of April 30, 2016, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:



Aggregate gross unrealized appreciation	$	110,719,711
Aggregate gross unrealized depreciation		(16,321,032	)
Net unrealized appreciation	$	94,398,679
Federal income tax cost of investments	$	1,372,085,349

Futures Contracts

FlexShares^® Quality Dividend Index Fund had the following open long futures contracts as of April 30, 2016:


	Number of Contracts		Expiration Date		Notional Amount at Value		Unrealized Appreciation
E-mini S&P 500^® Index Futures Contracts		104		06/17/2016	$	10,707,320	$	211,971

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			185

Schedule of Investments

FlexShares^® Quality Dividend Defensive Index Fund

April 30, 2016 (Unaudited)


	Shares		Value
COMMON STOCKS – 99.3%
Aerospace & Defense – 3.9%
The Boeing Co.		31,855	$	4,294,054
Lockheed Martin Corp.		12,995		3,019,778
Raytheon Co.		5,980		755,573
				8,069,405
Air Freight & Logistics – 2.3%
C.H. Robinson Worldwide, Inc.(a)		15,295		1,085,486
United Parcel Service, Inc., Class B		34,385		3,612,832
				4,698,318
Airlines – 0.0%^†
Allegiant Travel Co.		230		36,931
Automobiles – 0.2%
Ford Motor Co.		31,050		421,038
Banks – 5.6%
Bank of America Corp.		24,610		358,321
Bank of Hawaii Corp.(a)		15,525		1,062,065
BOK Financial Corp.(a)		4,255		256,066
Citigroup, Inc.		5,060		234,177
Cullen/Frost Bankers, Inc.(a)		2,875		183,971
FNB Corp./Pennsylvania(a)		18,400		243,248
Hancock Holding Co.(a)		9,545		247,884
JPMorgan Chase & Co.		19,780		1,250,096
People’s United Financial, Inc.(a)		14,030		217,465
Wells Fargo & Co.		148,005		7,397,290
				11,450,583
Beverages – 2.2%
The Coca-Cola Co.		18,055		808,864
Dr. Pepper Snapple Group, Inc.(a)		12,880		1,170,921
PepsiCo, Inc.		24,380		2,510,165
				4,489,950
Biotechnology – 0.5%
Amgen, Inc.		5,865		928,430


	Shares		Value
Capital Markets – 1.6%
Artisan Partners Asset Management, Inc., Class A(a)		35,880	$	1,159,283
LPL Financial Holdings, Inc.(a)		46,575		1,229,580
Virtu Financial, Inc., Class A		7,820		163,047
Waddell & Reed Financial, Inc., Class A(a)		41,630		846,754
				3,398,664
Chemicals – 0.1%
The Scotts Miracle-Gro Co., Class A		3,450		244,191
Commercial Services & Supplies – 1.6%
Pitney Bowes, Inc.(a)		56,810		1,191,306
R.R. Donnelley & Sons Co.		72,795		1,266,633
Republic Services, Inc.		7,130		335,609
Waste Management, Inc.		9,315		547,629
				3,341,177
Communications Equipment – 1.7%
Cisco Systems, Inc.		85,100		2,339,399
Motorola Solutions, Inc.		16,675		1,253,793
				3,593,192
Consumer Finance – 0.7%
Navient Corp.(a)		101,315		1,384,976
Containers & Packaging – 0.9%
Bemis Co., Inc.(a)		5,520		276,993
International Paper Co.(a)		6,440		278,659
Packaging Corp. of America(a)		3,220		208,914
Sonoco Products Co.		24,265		1,137,786
				1,902,352
Distributors – 0.6%
Genuine Parts Co.(a)		12,420		1,191,947
Diversified Consumer Services – 0.1%
H&R Block, Inc.(a)		8,970		181,553
Diversified Financial Services – 0.5%
MarketAxess Holdings, Inc.		8,280		1,016,453

See Accompanying Notes to the Financial Statements.


186		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Quality Dividend Defensive Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Diversified Telecommunication Services – 2.0%
CenturyLink, Inc.(a)		36,685	$	1,135,401
Verizon Communications, Inc.		59,570		3,034,496
				4,169,897
Electric Utilities – 3.9%
American Electric Power Co., Inc.		23,920		1,518,920
Duke Energy Corp.		14,145		1,114,343
Entergy Corp.		4,830		363,119
Exelon Corp.		11,500		403,535
FirstEnergy Corp.		33,810		1,101,868
PG&E Corp.		9,315		542,133
Pinnacle West Capital Corp.		15,755		1,144,601
PPL Corp.		13,800		519,432
The Southern Co.(a)		18,400		921,840
Xcel Energy, Inc.		10,005		400,500
				8,030,291
Electrical Equipment – 0.8%
Emerson Electric Co.		31,165		1,702,544
Electronic Equipment, Instruments & Components – 0.1%
National Instruments Corp.(a)		7,590		209,256
Energy Equipment & Services – 2.1%
Frank’s International N.V.		71,990		1,198,634
Helmerich & Payne, Inc.(a)		4,025		266,133
National Oilwell Varco, Inc.(a)		37,145		1,338,706
Noble Corp. PLC(a)		126,615		1,421,886
				4,225,359
Food & Staples Retailing – 2.3%
CVS Health Corp.		1,380		138,690
Wal-Mart Stores, Inc.(a)		68,655		4,590,960
				4,729,650
Food Products – 1.9%
Cal-Maine Foods, Inc.(a)		19,780		1,004,033
Flowers Foods, Inc.(a)		62,100		1,189,836
General Mills, Inc.		28,980		1,777,633
				3,971,502
Gas Utilities – 0.1%
AGL Resources, Inc.		4,485		295,382


	Shares		Value
Health Care Providers & Services – 4.5%
Anthem, Inc.		12,190	$	1,715,986
Cardinal Health, Inc.		15,410		1,209,069
Quest Diagnostics, Inc.		3,795		285,270
UnitedHealth Group, Inc.		45,425		5,981,564
				9,191,889
Hotels, Restaurants & Leisure – 3.6%
Brinker International, Inc.(a)		19,550		905,556
Cracker Barrel Old Country Store, Inc.		1,725		252,557
Darden Restaurants, Inc.(a)		17,135		1,066,654
Dunkin’ Brands Group, Inc.		4,945		229,942
McDonald’s Corp.		17,710		2,240,138
Papa John’s International, Inc.(a)		12,765		722,371
Six Flags Entertainment Corp.(a)		3,910		234,796
Yum! Brands, Inc.		21,275		1,692,639
				7,344,653
Household Durables – 0.8%
Garmin Ltd.(a)		6,555		279,439
Leggett & Platt, Inc.		5,635		277,749
Tupperware Brands Corp.(a)		19,895		1,155,303
				1,712,491
Household Products – 1.6%
The Clorox Co.		8,855		1,108,912
Kimberly-Clark Corp.		7,360		921,398
The Procter & Gamble Co.		14,950		1,197,794
				3,228,104
Industrial Conglomerates – 0.0%^†
3M Co.		230		38,497
Insurance – 4.2%
Allied World Assurance Co. Holdings AG		6,095		216,860
American National Insurance Co.		2,070		240,368
AmTrust Financial Services, Inc.(a)		32,315		803,028
Assurant, Inc.(a)		3,450		291,766
Cincinnati Financial Corp.(a)		4,945		326,419

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			187

FlexShares^® Quality Dividend Defensive Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Insurance – (continued)
Erie Indemnity Co., Class A		10,350	$	976,937
Everest Re Group Ltd.		5,750		1,063,175
First American Financial Corp.(a)		5,520		198,830
FNF Group		32,085		1,023,512
Mercury General Corp.(a)		4,025		212,923
Old Republic International Corp.		13,570		250,909
ProAssurance Corp.		19,205		916,655
The Progressive Corp.		36,570		1,192,182
Validus Holdings Ltd.		22,540		1,038,869
				8,752,433
Internet Software & Services – 0.4%
j2 Global, Inc.(a)		13,110		832,747
IT Services – 6.5%
Accenture PLC, Class A		8,625		973,935
Automatic Data Processing, Inc.		9,775		864,501
Broadridge Financial Solutions, Inc.		5,060		302,790
International Business Machines Corp.		45,885		6,696,457
Jack Henry & Associates, Inc.		12,535		1,015,711
Leidos Holdings, Inc.		18,860		935,645
Paychex, Inc.(a)		6,900		359,628
The Western Union Co.(a)		55,085		1,101,700
Xerox Corp.		115,000		1,104,000
				13,354,367
Media – 1.7%
Comcast Corp., Class A		7,935		482,131
Regal Entertainment Group, Class A(a)		11,500		239,775
Viacom, Inc., Class A(a)		24,840		1,091,221
Viacom, Inc., Class B(a)		29,440		1,204,096
The Walt Disney Co.		5,520		569,995
				3,587,218
Multiline Retail – 2.1%
Kohl’s Corp.(a)		23,115		1,023,995
Macy’s, Inc.		25,875		1,024,391
Target Corp.(a)		29,900		2,377,050
				4,425,436


	Shares			Value
Multi-Utilities – 2.2%
Ameren Corp.		7,245		$	347,760
CenterPoint Energy, Inc.		14,605			313,277
CMS Energy Corp.(a)		2,875			116,955
Consolidated Edison, Inc.		5,980			446,108
Dominion Resources, Inc.		12,190			871,219
Public Service Enterprise Group, Inc.		28,520			1,315,628
SCANA Corp.(a)		15,870			1,090,110
					4,501,057
Oil, Gas & Consumable Fuels – 5.6%
California Resources Corp.		—	^#		1
Chevron Corp.		29,555			3,019,930
CVR Energy, Inc.(a)		35,765			868,374
Exxon Mobil Corp.		52,900			4,676,360
HollyFrontier Corp.		27,255			970,278
Murphy Oil Corp.(a)		13,340			476,772
Occidental Petroleum Corp.		2,645			202,739
ONEOK, Inc.(a)		11,155			403,253
Spectra Energy Corp.(a)		12,880			402,758
Western Refining, Inc.(a)		8,395			224,650
The Williams Cos., Inc.		19,435			376,845
					11,621,960
Paper & Forest Products – 0.5%
Domtar Corp.(a)		29,210			1,128,674
Pharmaceuticals – 7.5%
Eli Lilly & Co.		20,700			1,563,471
Johnson & Johnson		36,570			4,098,766
Merck & Co., Inc.		122,360			6,710,222
Pfizer, Inc.		92,690			3,031,890
					15,404,349
Real Estate Investment Trusts (REITs) – 6.0%
CBL & Associates Properties, Inc.		21,965			256,551
Chimera Investment Corp.		17,940			254,748
Communications Sales & Leasing, Inc.		11,040			256,459
Corrections Corp. of America		32,545			990,019
Crown Castle International Corp.		16,445			1,428,742
Digital Realty Trust, Inc.		4,140			364,237

See Accompanying Notes to the Financial Statements.


188		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Quality Dividend Defensive Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Real Estate Investment Trusts (REITs) – (continued)
EPR Properties(a)		16,560	$	1,090,973
The GEO Group, Inc.(a)		6,785		217,323
Hospitality Properties Trust		42,435		1,085,912
Iron Mountain, Inc.(a)		10,695		390,688
Liberty Property Trust		35,305		1,232,144
MFA Financial, Inc.		28,635		197,868
National Health Investors, Inc.		4,140		281,893
National Retail Properties, Inc.		6,900		301,944
Outfront Media, Inc.		11,960		259,412
Realty Income Corp.(a)		5,980		354,016
Retail Properties of America, Inc., Class A(a)		69,115		1,105,149
Senior Housing Properties Trust		13,800		242,604
Spirit Realty Capital, Inc.		22,425		256,318
STORE Capital Corp.		7,705		197,787
Ventas, Inc.(a)		6,555		407,197
Welltower, Inc.(a)		6,785		471,015
WP Carey, Inc.(a)		4,600		281,014
Xenia Hotels & Resorts, Inc.		28,865		443,944
				12,367,957
Semiconductors & Semiconductor Equipment – 2.8%
KLA-Tencor Corp.		7,935		554,974
Linear Technology Corp.		6,670		296,682
Maxim Integrated Products, Inc.		8,510		303,977
QUALCOMM, Inc.		32,660		1,649,983
Texas Instruments, Inc.		51,290		2,925,582
				5,731,198
Software – 1.3%
Activision Blizzard, Inc.		37,720		1,300,208
CA, Inc.		37,375		1,108,543
Symantec Corp.		14,720		245,014
				2,653,765
Specialty Retail – 4.2%
American Eagle Outfitters, Inc.(a)		69,000		987,390
DSW, Inc., Class A(a)		9,545		234,520
GameStop Corp., Class A(a)		34,385		1,127,828
The Home Depot, Inc.		38,410		5,142,715


	Shares		Value
Specialty Retail – (continued)
L Brands, Inc.		5,175	$	405,151
Staples, Inc.		76,590		781,218
				8,678,822
Technology Hardware, Storage & Peripherals – 3.6%
Apple, Inc.		51,290		4,807,925
HP, Inc.		113,275		1,389,884
Seagate Technology PLC		8,165		177,752
Western Digital Corp.(a)		24,495		1,000,988
				7,376,549
Thrifts & Mortgage Finance – 0.1%
New York Community Bancorp, Inc.		14,720		221,242
Tobacco – 4.4%
Altria Group, Inc.		85,215		5,343,833
Philip Morris International, Inc.		36,570		3,588,248
Vector Group Ltd.		8,165		176,364
				9,108,445
Total Common Stocks (Cost $191,240,342)				204,944,894
	No. of Rights
RIGHTS – 0.0%^†
Safeway, Inc. (Casa Ley subsidiary)* ^		8,450		412
Safeway, Inc. (PDC subsidiary)* ^		8,450		8,576
Total Rights (Cost $–)				8,988
	Principal Amount
SECURITIES LENDING REINVESTMENTS(b) – 19.8%
CERTIFICATES OF DEPOSITS – 2.9%
Chiba Bank Ltd., New York Branch
0.61%, due 06/27/2016	$	1,000,000		1,000,000
Credit Suisse AG, New York
0.63%, due 05/03/2016		1,600,000		1,600,000

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			189

FlexShares^® Quality Dividend Defensive Index Fund (cont.)


	Principal Amount		Value
SECURITIES LENDING REINVESTMENTS(b) – (continued)
CERTIFICATES OF DEPOSITS – (continued)
Mizuho Corporate Bank Ltd., London
0.72%, due 06/30/2016	$	1,500,000	$	1,498,860
Norinchukin Bank, New York
0.60%, due 06/13/2016		1,000,000		1,000,000
State Street Bank & Trust Co., Series Cd
0.54%, due 05/20/2016		1,000,000		1,000,056
Total Certificates of Deposits (Cost $6,098,289)				6,098,916

COMMERCIAL PAPERS – 0.9%
Abbey National Treasury Services PLC
0.63%, due 05/13/2016		800,000		799,846
ABN Amro Funding USA LLC
0.62%, due 05/17/2016		1,000,000		999,742
Total Commercial Papers (Cost $1,799,588)				1,799,588

MASTER DEMAND NOTE – 0.7%
Natixis Financial Products LLC
0.64%, due 05/02/2016		1,500,000		1,500,000
Total Master Demand Note (Cost $1,500,000)				1,500,000

MONEY MARKET FUNDS(c) – 6.4%
BlackRock Cash Funds – Prime, Institutional Class
0.46%		2,000,000		2,000,000
BlackRock Liquidity Funds, TempFund, Institutional Class
0.42%		2,000,000		2,000,000
Dreyfus Cash Advantage Fund, Institutional Class
0.37%		2,000,000		2,000,000
Fidelity Money Market Portfolio, Institutional Class
0.38%		2,000,000		2,000,000


	Principal Amount		Value
MONEY MARKET FUNDS(c) – (continued)
Fidelity Prime Money Market Portfolio, Institutional Class
0.44%	$	2,000,000	$	2,000,000
Morgan Stanley Liquidity Funds – Prime, Institutional Class
0.39%		3,000,000		3,000,000
Total Money Market Funds (Cost $13,000,000)				13,000,000

REPURCHASE AGREEMENTS – 8.9%
Citigroup Global Markets, Inc., 0.31%, dated 04/29/2016, due 05/02/2016, repurchase price $13,411,314, collateralized by various U.S. Treasury Securities, ranging from 0.00% – 6.63%, maturing 11/15/2026 – 02/15/2046; U.S. Government Agency Mortgage Securities, ranging from 2.00% – 8.00%, maturing 07/20/2026 – 04/20/2046; total market value $13,680,577		13,410,967		13,410,967
Credit Suisse Securities USA LLC, 0.44%, dated 04/29/2016, due 05/02/2016, repurchase price $5,000,183, collateralized by various Common Stocks; total market value $5,555,623		5,000,000		5,000,000
Total Repurchase Agreements (Cost $18,410,967)				18,410,967
Total Securities Lending Reinvestments (Cost $40,808,844)				40,809,471
Total Investment Securities (Cost $232,049,186) – 119.1%				245,763,353
Liabilities in excess of other assets – (19.1%)				(39,412,484	)
NET ASSETS – 100.0%			$	206,350,869

See Accompanying Notes to the Financial Statements.


190		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Quality Dividend Defensive Index Fund (cont.)

*	Non-income producing security.

^	Security fair valued in accordance with procedures adopted by the Board of Trustees. At 04/30/2016, the value of these securities amounted to $8,988 or 0.00% of net assets.

^†	Amount represents less than 0.05%.

^#	Amount represents less than one share.

^(a)

The security or a portion of this security is on loan at 04/30/2016. The total value of securities on loan at 04/30/2016 was $40,571,864, which was collateralized in the form of cash with a value of $40,805,451; $698,312 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 8.88%, and maturity dates ranging from 05/19/2016 –05/15/2045; a total value of $41,503,763.

^(b)

The security was purchased with cash collateral held from securities on loan at 04/30/2016. The total value of securities purchased was $40,809,471.

^(c)

Represents 7-day effective yield as of 04/30/2016.

Percentages shown are based on Net Assets.

Abbreviation:

REIT — Real Estate Investment Trust

As of April 30, 2016, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:



Aggregate gross unrealized appreciation	$	17,997,366
Aggregate gross unrealized depreciation		(4,194,798	)
Net unrealized appreciation	$	13,802,568
Federal income tax cost of investments	$	231,960,785

Futures Contracts

FlexShares^® Quality Dividend Defensive Index Fund had the following open long futures contracts as of April 30, 2016:


	Number of Contracts		Expiration Date		Notional Amount at Value		Unrealized Appreciation
E-mini S&P 500^® Index Futures Contracts		13		06/17/2016	$	1,338,415	$	34,676

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			191

Schedule of Investments

FlexShares^® Quality Dividend Dynamic Index Fund

April 30, 2016 (Unaudited)


	Shares		Value
COMMON STOCKS – 99.0%
Aerospace & Defense – 3.5%
The Boeing Co.		7,800	$	1,051,440
Lockheed Martin Corp.		3,180		738,969
				1,790,409
Air Freight & Logistics – 1.7%
United Parcel Service, Inc., Class B		8,460		888,892
Auto Components – 0.1%
The Goodyear Tire & Rubber Co.		2,160		62,575
Automobiles – 0.5%
Ford Motor Co.		19,020		257,911
Banks – 7.6%
Bank of America Corp.		6,600		96,096
Citigroup, Inc.		1,440		66,643
JPMorgan Chase & Co.		29,040		1,835,327
People’s United Financial, Inc.(a)		3,900		60,450
Regions Financial Corp.		8,310		77,948
Wells Fargo & Co.		35,250		1,761,795
				3,898,259
Beverages – 0.7%
The Coca-Cola Co.		4,710		211,008
PepsiCo, Inc.		1,230		126,641
				337,649
Biotechnology – 1.1%
Amgen, Inc.		3,420		541,386
Building Products – 0.8%
Lennox International, Inc.(a)		990		133,601
Masco Corp.		9,420		289,288
				422,889
Capital Markets – 2.7%
Ameriprise Financial, Inc.		780		74,802
Artisan Partners Asset Management, Inc., Class A(a)		8,640		279,159
BlackRock, Inc.		300		106,899
Federated Investors, Inc., Class B		8,220		259,752
Invesco Ltd.		9,690		300,487


	Shares		Value
Capital Markets – (continued)
Waddell & Reed Financial, Inc., Class A(a)		10,230	$	208,078
WisdomTree Investments, Inc.		12,990		141,461
				1,370,638
Chemicals – 2.1%
Celanese Corp.(a)		1,170		82,719
The Dow Chemical Co.		5,880		309,347
E.I. du Pont de Nemours & Co.		4,590		302,527
LyondellBasell Industries N.V., Class A(a)		4,770		394,336
				1,088,929
Commercial Services & Supplies – 1.3%
Deluxe Corp.		360		22,601
KAR Auction Services, Inc.(a)		1,800		67,680
Pitney Bowes, Inc.(a)		12,930		271,142
R.R. Donnelley & Sons Co.		17,700		307,980
				669,403
Communications Equipment – 1.2%
Cisco Systems, Inc.		21,120		580,589
Juniper Networks, Inc.		2,610		61,074
				641,663
Consumer Finance – 0.7%
Navient Corp.		24,540		335,462
Containers & Packaging – 0.9%
Avery Dennison Corp.		3,870		281,001
International Paper Co.(a)		2,370		102,550
Packaging Corp. of America(a)		1,200		77,856
				461,407
Diversified Telecommunication Services – 2.0%
CenturyLink, Inc.(a)		9,240		285,978
Verizon Communications, Inc.		14,460		736,592
				1,022,570
Electric Utilities – 1.0%
American Electric Power Co., Inc.		2,580		163,830
PPL Corp.		3,360		126,471
The Southern Co.		4,680		234,468
				524,769

See Accompanying Notes to the Financial Statements.


192		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Quality Dividend Dynamic Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Electrical Equipment – 1.1%
Eaton Corp. PLC		2,370	$	149,950
Emerson Electric Co.		8,040		439,225
				589,175
Energy Equipment & Services – 1.5%
Helmerich & Payne, Inc.(a)		1,140		75,377
National Oilwell Varco, Inc.(a)		9,090		327,603
Noble Corp. PLC(a)		30,690		344,649
Schlumberger Ltd.		300		24,102
				771,731
Food & Staples Retailing – 0.1%
CVS Health Corp.		330		33,165
Wal-Mart Stores, Inc.		390		26,079
				59,244
Food Products – 0.6%
Cal-Maine Foods, Inc.(a)		4,860		246,693
Ingredion, Inc.		630		72,507
				319,200
Health Care Equipment & Supplies – 0.5%
Cantel Medical Corp.		4,080		273,319
Health Care Providers & Services – 2.5%
Anthem, Inc.		2,070		291,394
Cardinal Health, Inc.		1,950		152,997
HealthSouth Corp.(a)		1,380		57,215
UnitedHealth Group, Inc.		6,060		797,981
				1,299,587
Hotels, Restaurants & Leisure – 2.6%
Darden Restaurants, Inc.(a)		4,080		253,980
McDonald’s Corp.		4,320		546,437
Six Flags Entertainment Corp.		1,080		64,854
Starbucks Corp.		6,480		364,370
Starwood Hotels & Resorts Worldwide, Inc.		1,200		98,256
				1,327,897
Household Durables – 0.8%
Garmin Ltd.(a)		1,410		60,109
Leggett & Platt, Inc.(a)		1,500		73,935


	Shares		Value
Household Durables – (continued)
Tupperware Brands Corp.		4,860	$	282,220
				416,264
Household Products – 0.6%
The Procter & Gamble Co.		3,960		317,275
Independent Power and Renewable Electricity Producers – 0.6%
NRG Yield, Inc., Class A		20,010		302,751
Industrial Conglomerates – 2.4%
3M Co.		7,530		1,260,371
Insurance – 3.5%
Aflac, Inc.		5,190		357,954
AmTrust Financial Services, Inc.(a)		6,150		152,828
Assured Guaranty Ltd.		10,050		259,994
Cincinnati Financial Corp.		1,140		75,251
Lincoln National Corp.		5,250		228,113
MetLife, Inc.		4,830		217,833
Old Republic International Corp.		3,180		58,798
Principal Financial Group, Inc.		7,020		299,614
Prudential Financial, Inc.		2,310		179,348
				1,829,733
Internet Software & Services – 0.4%
j2 Global, Inc.(a)		3,270		207,710
IT Services – 4.6%
Accenture PLC, Class A		3,150		355,698
Broadridge Financial Solutions, Inc.		1,140		68,218
Computer Sciences Corp.		8,700		288,231
Global Payments, Inc.		1		43
International Business Machines Corp.		6,960		1,015,742
Leidos Holdings, Inc.		5,520		273,847
Paychex, Inc.(a)		1,710		89,125
The Western Union Co.(a)		13,890		277,800
Xerox Corp.		2,490		23,904
				2,392,608
Leisure Products – 0.2%
Hasbro, Inc.(a)		930		78,715
Machinery – 1.1%
Caterpillar, Inc.		2,910		226,165

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			193

FlexShares^® Quality Dividend Dynamic Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Machinery – (continued)
Cummins, Inc.(a)		2,520	$	294,916
Terex Corp.		2,460		58,769
				579,850
Media – 3.5%
Comcast Corp., Class A		1,980		120,305
The Interpublic Group of Cos., Inc.		3,420		78,455
Omnicom Group, Inc.		1,230		102,053
Regal Entertainment Group, Class A(a)		2,670		55,670
Sinclair Broadcast Group, Inc., Class A(a)		8,100		259,767
TEGNA, Inc.(a)		10,290		240,374
Time Warner, Inc.		6,450		484,653
Viacom, Inc., Class B(a)		7,380		301,842
The Walt Disney Co.		1,740		179,672
				1,822,791
Metals & Mining – 1.9%
Nucor Corp.(a)		6,510		324,068
Reliance Steel & Aluminum Co.		4,110		304,017
Steel Dynamics, Inc.		13,140		331,259
				959,344
Multi-Utilities – 0.8%
NiSource, Inc.		3,900		88,569
Public Service Enterprise Group, Inc.		6,810		314,145
				402,714
Oil, Gas & Consumable Fuels – 8.1%
Chevron Corp.		7,200		735,696
CVR Energy, Inc.(a)		8,670		210,508
Exxon Mobil Corp.		8,640		763,776
HollyFrontier Corp.(a)		8,070		287,292
Marathon Petroleum Corp.		8,490		331,789
Murphy Oil Corp.(a)		3,000		107,220
Occidental Petroleum Corp.		9,270		710,545
ONEOK, Inc.(a)		2,670		96,520
Phillips 66		2,760		226,624
Spectra Energy Corp.(a)		3,390		106,005
Tesoro Corp.		960		76,502
Valero Energy Corp.		6,150		362,051
Western Refining, Inc.(a)		1,980		52,985


	Shares		Value
Oil, Gas & Consumable Fuels – (continued)
The Williams Cos., Inc.		4,710	$	91,327
				4,158,840
Paper & Forest Products – 0.5%
Domtar Corp.(a)		7,200		278,208
Personal Products – 0.6%
Nu Skin Enterprises, Inc., Class A(a)		8,130		331,460
Pharmaceuticals – 7.2%
Eli Lilly & Co.		4,080		308,162
Johnson & Johnson		8,970		1,005,358
Merck & Co., Inc.		29,970		1,643,555
Pfizer, Inc.		22,950		750,694
				3,707,769
Professional Services – 0.5%
ManpowerGroup, Inc.		3,330		256,510
Real Estate Investment Trusts (REITs) – 5.9%
CBL & Associates Properties, Inc.(a)		5,040		58,867
Chimera Investment Corp.(a)		4,290		60,918
Columbia Property Trust, Inc.		2,610		58,203
Communications Sales & Leasing, Inc.		3,120		72,478
Corrections Corp. of America		8,220		250,052
EPR Properties(a)		3,960		260,885
The GEO Group, Inc.(a)		1,800		57,654
Hospitality Properties Trust		10,440		267,160
Host Hotels & Resorts, Inc.(a)		15,390		243,470
Iron Mountain, Inc.(a)		2,640		96,439
Lamar Advertising Co., Class A(a)		4,500		279,180
LaSalle Hotel Properties(a)		10,020		239,478
Liberty Property Trust		8,700		303,630
MFA Financial, Inc.		7,950		54,934
National Health Investors, Inc.(a)		900		61,281
Outfront Media, Inc.		2,820		61,166
RLJ Lodging Trust		10,560		222,499
Ryman Hospitality Properties, Inc.		4,950		255,073
Senior Housing Properties Trust		3,810		66,980
WP Carey, Inc.		1,110		67,810
				3,038,157

See Accompanying Notes to the Financial Statements.


194		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Quality Dividend Dynamic Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Semiconductors & Semiconductor Equipment – 3.7%
Broadcom Ltd.		1,410	$	205,508
KLA-Tencor Corp.		3,960		276,962
Linear Technology Corp.(a)		1,650		73,392
Maxim Integrated Products, Inc.		2,190		78,227
NVIDIA Corp.(a)		3,000		106,590
QUALCOMM, Inc.		7,950		401,634
Texas Instruments, Inc.		12,540		715,282
Xilinx, Inc.		1,590		68,497
				1,926,092
Software – 1.7%
Activision Blizzard, Inc.		9,300		320,571
Blackbaud, Inc.		960		59,299
CA, Inc.		8,940		265,161
Fair Isaac Corp.		2,130		227,292
				872,323
Specialty Retail – 4.7%
Best Buy Co., Inc.(a)		8,550		274,284
GameStop Corp., Class A(a)		8,520		279,456
The Home Depot, Inc.		12,810		1,715,131
L Brands, Inc.		1,260		98,646
Lithia Motors, Inc., Class A(a)		510		42,340
				2,409,857
Technology Hardware, Storage & Peripherals – 4.4%
Apple, Inc.		18,240		1,709,818
HP, Inc.		27,930		342,701
Seagate Technology PLC		2,220		48,329
Western Digital Corp.(a)		3,750		153,244
				2,254,092
Thrifts & Mortgage Finance – 0.1%
New York Community Bancorp, Inc.		4,080		61,322
Tobacco – 4.4%
Altria Group, Inc.		9,330		585,084
Philip Morris International, Inc.		16,590		1,627,811
Vector Group Ltd.		2,460		53,136
				2,266,031
Total Common Stocks (Cost $49,611,932)				51,085,751


	Principal Amount		Value
SECURITIES LENDING REINVESTMENTS(b) – 16.5%
CERTIFICATE OF DEPOSIT – 0.8%
Credit Suisse AG, New York 0.63%, due 05/03/2016	$	400,000	$	400,000
Total Certificate of Deposit (Cost $400,000)				400,000

COMMERCIAL PAPER – 1.0%
Abbey National Treasury Services PLC 0.63%, due 05/13/2016		500,000		499,904
Total Commercial Paper (Cost $499,904)				499,904

MASTER DEMAND NOTE – 0.8%
Natixis Financial Products LLC 0.64%, due 05/02/2016		400,000		400,000
Total Master Demand Note (Cost $400,000)				400,000

MONEY MARKET FUNDS(c) – 8.1%
BlackRock Cash Funds – Prime, Institutional Class 0.46%		700,000		700,000
BlackRock Liquidity Funds, TempFund, Institutional Class 0.42%		700,000		700,000
Dreyfus Cash Advantage Fund, Institutional Class 0.37%		700,000		700,000
Fidelity Money Market Portfolio, Institutional Class 0.38%		700,000		700,000
Fidelity Prime Money Market Portfolio, Institutional Class 0.44%		700,000		700,000
Morgan Stanley Liquidity Funds –Prime, Institutional Class 0.39%		700,000		700,000
Total Money Market Funds (Cost $4,200,000)				4,200,000

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			195

FlexShares^® Quality Dividend Dynamic Index Fund (cont.)


	Principal Amount		Value

SECURITIES LENDING REINVESTMENTS – (continued)
REPURCHASE AGREEMENTS – 5.8%
Citigroup Global Markets, Inc., 0.31%, dated 04/29/2016, due 05/02/2016, repurchase price $2,003,137, collateralized by various U.S. Treasury Securities, ranging from 0.00% – 6.63%, maturing 11/15/2026 – 02/15/2046; U.S. Government Agency Mortgage Securities, ranging from 2.00% – 8.00%, maturing 07/20/2026 – 04/20/2046; total market value $2,043,355	$	2,003,086	$	2,003,086
Credit Suisse Securities USA LLC, 0.44%, dated 04/29/2016, due 05/02/2016, repurchase price $1,000,037, collateralized by various Common Stocks; total market value $1,111,125		1,000,000		1,000,000
Total Repurchase Agreements (Cost $3,003,086)				3,003,086
Total Securities Lending Reinvestments (Cost $8,502,990)				8,502,990
Total Investment Securities (Cost $58,114,922) – 115.5%				59,588,741
Liabilities in excess of other assets – (15.5%)				(8,011,709	)
NET ASSETS – 100.0%			$	51,577,032

^(a)

The security or a portion of this security is on loan at 04/30/2016. The total value of securities on loan at 04/30/2016 was $8,569,234, which was collateralized in the form of cash with a value of $8,502,272; $268,858 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 4.75%, and maturity dates ranging from 05/19/2016 – 05/15/2045; a total value of $8,771,130.

^(b)

The security was purchased with cash collateral held from securities on loan at 04/30/2016. The total value of securities purchased was $8,502,990.

^(c)

Represents 7-day effective yield as of 04/30/2016.

Percentages shown are based on Net Assets.

Abbreviation:

REIT – Real Estate Investment Trust

As of April 30, 2016, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:



Aggregate gross unrealized appreciation	$	3,815,906
Aggregate gross unrealized depreciation		(2,316,080	)
Net unrealized appreciation	$	1,499,826
Federal income tax cost of investments	$	58,088,915

Futures Contracts

FlexShares^® Quality Dividend Dynamic Index Fund had the following open long futures contracts as of April 30, 2016:


	Number of Contracts		Expiration Date		Notional Amount at Value		Unrealized Appreciation
E-mini S&P 500^® Index Futures Contracts		4		06/17/2016	$	411,820	$	10,646

See Accompanying Notes to the Financial Statements.


196		FLEXSHARES SEMIANNUAL REPORT

Schedule of Investments

FlexShares^® International Quality Dividend Index Fund

April 30, 2016 (Unaudited)


	Shares		Value
COMMON STOCKS – 98.0%
Air Freight & Logistics – 0.8%
bpost S.A.		99,468	$	2,806,559
Auto Components – 0.6%
Bridgestone Corp.		57,200		2,200,432
Automobiles – 1.3%
Fuji Heavy Industries Ltd.		88,900		3,087,550
Toyota Motor Corp.		29,200		1,543,033
				4,630,583
Banks – 12.5%
Aozora Bank Ltd.		810,000		2,960,045
Australia & New Zealand Banking Group Ltd.		3,240		60,010
Banco Santander Chile		2,524,446		121,510
Bank of China Ltd., Class H		4,212,000		1,721,245
BOC Hong Kong Holdings Ltd.		634,000		1,900,235
Canadian Imperial Bank of Commerce		45,198		3,656,686
Commonwealth Bank of Australia		179,982		10,149,032
HSBC Holdings PLC		191,322		1,268,211
Intercorp Financial Services, Inc.		102,384		2,917,944
KBC Groep N.V.		49,896		2,801,985
National Australia Bank Ltd.		136,242		2,827,028
Royal Bank of Canada		79,704		4,958,116
Skandinaviska Enskilda Banken AB, Class A		266,004		2,543,177
Skandinaviska Enskilda Banken AB, Class C(a)		218,700		2,184,969
Swedbank AB, Class A		50,382		1,087,718
Westpac Banking Corp.		209,142		4,955,788
				46,113,699
Beverages – 0.1%
Anheuser-Busch InBev S.A./N.V.(a)		3,078		381,094
Capital Markets – 3.5%
Banca Generali SpA		91,692		2,723,154
CI Financial Corp.		115,182		2,554,491
Coronation Fund Managers Ltd.(a)		443,880		2,317,257


	Shares		Value
Capital Markets – (continued)
Daiwa Securities Group, Inc.		148,000	$	893,851
IGM Financial, Inc.		93,474		2,947,647
Macquarie Group Ltd.		18,144		879,259
Partners Group Holding AG(a)		1,134		467,324
				12,782,983
Chemicals – 1.9%
BASF SE		49,410		4,083,094
EMS-Chemie Holding AG (Registered)(a)		162		80,155
Kuraray Co., Ltd.		32,400		425,762
Synthos S.A.		2,308,500		2,459,709
				7,048,720
Commercial Services & Supplies – 0.8%
Edenred(a)		149,850		2,955,481
Communications Equipment – 0.4%
Nokia Oyj (SIGMA X MTF)		177,228		1,045,388
Telefonaktiebolaget LM Ericsson, Class A		74,196		612,254
				1,657,642
Construction & Engineering – 0.8%
CIMIC Group Ltd.		106,758		2,915,896
Construction Materials – 0.2%
Indocement Tunggal Prakarsa Tbk PT		340,200		508,830
Taiwan Cement Corp.		324,000		330,499
				839,329
Diversified Financial Services – 1.2%
Banca Mediolanum SpA		199,098		1,638,445
Rural Electrification Corp. Ltd.		1,043,766		2,807,295
				4,445,740
Diversified Telecommunication Services – 4.9%
Bezeq The Israeli Telecommunication Corp. Ltd.		1,180,170		2,520,015
Maroc Telecom		26,892		371,108
O2 Czech Republic A/S		197,802		2,010,264
TalkTalk Telecom Group PLC(a)		851,310		3,334,702

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			197

FlexShares^® International Quality Dividend Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Diversified Telecommunication Services – (continued)
Telefonica S.A.		156,168	$	1,703,172
Telenor ASA		175,284		3,017,052
Telia Co. AB		468,018		2,237,283
Vivendi S.A.		145,314		2,789,457
				17,983,053
Electric Utilities – 2.6%
CEZ A/S(a)		164,430		3,212,697
Endesa S.A.		18,954		398,034
Energa S.A.		706,482		2,300,810
Fortum Oyj(a)		195,534		2,947,246
SSE PLC		23,976		530,349
				9,389,136
Electrical Equipment – 1.1%
Mitsubishi Electric Corp.		104,000		1,164,465
Vestas Wind Systems A/S		42,444		3,037,173
				4,201,638
Electronic Equipment, Instruments & Components – 1.7%
Innolux Corp.		9,234,000		2,862,989
Omron Corp.		77,900		2,591,934
Synnex Technology International Corp.		648,000		643,922
				6,098,845
Food & Staples Retailing – 1.7%
Distribuidora Internacional de Alimentacion S.A.* (a)		144,342		801,151
Koninklijke Ahold N.V.(a)		130,734		2,844,988
Wm Morrison Supermarkets PLC(a)		964,386		2,699,725
				6,345,864
Food Products – 1.7%
Nestle S.A. (Registered)		46,818		3,492,422
Orkla ASA		316,224		2,760,753
				6,253,175
Gas Utilities – 1.0%
Empresa de Energia de Bogota S.A. ESP		1,247,562		809,139
Enagas S.A.		90,234		2,749,614
				3,558,753


	Shares		Value
Health Care Equipment & Supplies – 0.8%
Hoya Corp.		78,100	$	3,110,277
Hotels, Restaurants & Leisure – 1.3%
Sands China Ltd.(a)		702,400		2,517,238
SJM Holdings Ltd.(a)		3,564,000		2,398,299
				4,915,537
Household Durables – 1.6%
Berkeley Group Holdings PLC		54,756		2,402,351
Casio Computer Co., Ltd.(a)		129,600		2,561,840
Panasonic Corp.		97,200		903,366
				5,867,557
Independent Power and Renewable Electricity Producers – 0.9%
E.ON Russia JSC		77,234,634		3,151,118
Insurance – 6.4%
Admiral Group PLC(a)		105,138		2,860,089
Allianz SE (Registered)		29,160		4,951,314
BB Seguridade Participacoes S.A.		356,400		3,090,150
The Dai-ichi Life Insurance Co., Ltd.		81,000		1,036,394
Direct Line Insurance Group PLC		480,816		2,549,033
Gjensidige Forsikring ASA		127,494		2,183,390
Legal & General Group PLC		385,722		1,260,614
Power Corp. of Canada		32,562		792,604
Power Financial Corp.		35,802		942,925
Sompo Japan Nipponkoa Holdings, Inc.		32,400		890,436
Tokio Marine Holdings, Inc.		7,200		248,243
UnipolSai SpA		1,216,944		2,840,619
				23,645,811
Internet Software & Services – 0.2%
Kakaku.com, Inc.(a)		14,000		260,778
Tencent Holdings Ltd.		16,200		331,844
Yahoo Japan Corp.		32,400		150,198
				742,820
Leisure Products – 1.2%
Bandai Namco Holdings, Inc.		81,000		1,771,485
Sankyo Co., Ltd.		64,800		2,525,501
				4,296,986

See Accompanying Notes to the Financial Statements.


198		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® International Quality Dividend Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Machinery – 3.8%
FANUC Corp.		18,000	$	2,776,672
Hino Motors Ltd.		240,000		2,427,029
IMI PLC(a)		20,574		281,798
Kawasaki Heavy Industries Ltd.		247,000		729,492
Komatsu Ltd.		46,100		821,437
Metso Oyj(a)		89,910		2,161,517
Minebea Co., Ltd.		225,000		1,932,567
Turk Traktor ve Ziraat Makineleri A/S		97,200		2,883,685
				14,014,197
Marine – 0.1%
Seaspan Corp.		32,400		547,884
Media – 1.3%
Multiplus S.A.		356,400		3,882,310
ProSiebenSat.1 Media SE		20,736		1,057,349
				4,939,659
Metals & Mining – 3.8%
Anglo American PLC		127,494		1,425,771
BHP Billiton PLC		112,104		1,532,348
China Molybdenum Co., Ltd., Class H^		13,122,000		2,199,067
Eregli Demir ve Celik Fabrikalari TAS		2,291,652		3,829,945
Rio Tinto PLC		49,410		1,665,118
Severstal PAO		290,628		3,266,518
				13,918,767
Multi-Utilities – 1.1%
Engie S.A.(a)		40,824		673,312
RWE AG*		225,180		3,364,435
				4,037,747
Oil, Gas & Consumable Fuels – 8.3%
BP PLC		973,134		5,327,971
Ecopetrol S.A.		2,048,166		1,016,041
Eni SpA		266,490		4,334,185
Husky Energy, Inc.		76,302		963,065
Origin Energy Ltd.		37,098		155,429
Repsol S.A.		263,088		3,448,697


	Shares		Value
Oil, Gas & Consumable Fuels – (continued)
Royal Dutch Shell PLC, Class A(a)		205,578	$	5,358,986
Royal Dutch Shell PLC, Class B		129,924		3,399,216
Showa Shell Sekiyu KK		307,800		3,302,532
Surgutneftegas OAO (Preference)		172,118		111,761
Surgutneftegas OAO (Preference) (ADR)		406,008		2,578,151
TOTAL S.A.(a)		9,883		497,265
				30,493,299
Paper & Forest Products – 1.2%
Fibria Celulose S.A.		243,000		2,133,679
UPM-Kymmene Oyj		124,578		2,379,993
				4,513,672
Personal Products – 1.7%
Kao Corp.		16,200		926,017
Unilever N.V. (CVA)(a)		123,282		5,417,178
				6,343,195
Pharmaceuticals – 6.5%
Bayer AG (Registered)		1,782		205,632
GlaxoSmithKline PLC		513,216		10,968,910
Novartis AG (Registered)		31,266		2,387,763
Novo Nordisk A/S, Class B		8,262		461,395
Orion Oyj, Class A(a)		75,492		2,593,078
Orion Oyj, Class B		70,794		2,469,816
Roche Holding AG – Genusschein		16,848		4,262,535
Sanofi(a)		7,128		588,710
				23,937,839
Professional Services – 0.8%
Adecco S.A. (Registered)		45,684		2,943,127
Real Estate Investment Trusts (REITs) – 3.2%
Hui Xian Real Estate Investment Trust		5,346,000		2,555,725
Japan Retail Fund Investment Corp.		116		288,496
Klepierre		62,532		2,941,834
Link REIT		227,500		1,382,796
Redefine Properties Ltd.		526,986		456,722
RioCan Real Estate Investment Trust		13,558		295,275
Smart Real Estate Investment Trust		31,104		836,326
Unibail-Rodamco SE		11,502		3,082,673
				11,839,847

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			199

FlexShares^® International Quality Dividend Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Real Estate Management & Development – 2.2%
Daito Trust Construction Co., Ltd.		20,700	$	2,997,771
Evergrande Real Estate Group Ltd.(a)		4,050,000		3,007,270
KWG Property Holding Ltd.		3,321,000		2,157,717
				8,162,758
Road & Rail – 0.7%
Aurizon Holdings Ltd.		779,382		2,539,733
Semiconductors & Semiconductor Equipment – 1.8%
MediaTek, Inc.		76,000		541,965
Nanya Technology Corp.		2,071,000		2,420,758
Novatek Microelectronics Corp.		631,000		2,210,740
STMicroelectronics N.V.(a)		130,896		804,180
Taiwan Semiconductor Manufacturing Co., Ltd.		162,000		753,418
				6,731,061
Software – 0.1%
Oracle Corp.		4,400		243,039
Specialty Retail – 0.5%
Hennes & Mauritz AB, Class B* (a)		33,858		1,204,926
USS Co., Ltd.		46,200		757,370
				1,962,296
Technology Hardware, Storage & Peripherals – 1.1%
Canon, Inc.		56,500		1,643,329
Compal Electronics, Inc.		2,754,000		1,622,361
Samsung Electronics Co., Ltd.		648		708,057
				3,973,747
Textiles, Apparel & Luxury Goods – 1.8%
HUGO BOSS AG(a)		31,428		2,004,621
Li & Fung Ltd.(a)		4,212,000		2,611,731
Ruentex Industries Ltd.		1,458,000		2,038,750
				6,655,102
Tobacco – 3.9%
British American Tobacco PLC		195,858		11,964,246
Japan Tobacco, Inc.		55,500		2,349,783
				14,314,029


	Shares		Value
Transportation Infrastructure – 0.8%
Hopewell Highway Infrastructure Ltd.(a)		486,000	$	242,461
Jiangsu Expressway Co., Ltd., Class H		1,944,000		2,561,192
				2,803,653
Wireless Telecommunication Services – 2.1%
Advanced Info Service PCL (NVDR)		145,863		651,435
MegaFon PJSC		95,094		1,087,922
StarHub Ltd.(a)		810,000		1,994,792
Turkcell Iletisim Hizmetleri A/S*		189,702		821,456
Vodacom Group Ltd.(a)		259,524		3,028,840
Vodafone Group PLC		40,338		129,528
				7,713,973
Total Common Stocks (Cost $372,794,130)				360,967,352
	Principal Amount
SECURITIES LENDING REINVESTMENTS(b) – 3.6%
CERTIFICATE OF DEPOSIT – 0.1%
Credit Suisse AG, New York 0.63%, due 05/03/2016	$	600,000		600,000
Total Certificate of Deposit (Cost $600,000)				600,000

MASTER DEMAND NOTE – 0.1%
Natixis Financial Products LLC 0.64%, due 05/02/2016		400,000		400,000
Total Master Demand Note (Cost $400,000)				400,000

MONEY MARKET FUNDS(c) – 1.2%
BlackRock Cash Funds – Prime, Institutional Class 0.46%		700,000		700,000
BlackRock Liquidity Funds, TempFund, Institutional Class 0.42%		700,000		700,000
Dreyfus Cash Advantage Fund, Institutional Class 0.37%		700,000		700,000

See Accompanying Notes to the Financial Statements.


200		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® International Quality Dividend Index Fund (cont.)


	Principal Amount		Value
SECURITIES LENDING REINVESTMENTS(b) – (continued)
MONEY MARKET FUNDS(c) – (continued)
Fidelity Money Market Portfolio, Institutional Class 0.38%	$	700,000	$	700,000
Fidelity Prime Money Market Portfolio, Institutional Class 0.44%		700,000		700,000
Morgan Stanley Liquidity Funds – Prime, Institutional Class 0.39%		700,000		700,000
Total Money Market Funds (Cost $4,200,000)				4,200,000

REPURCHASE AGREEMENTS – 2.2%
Citigroup Global Markets, Inc., 0.31%, dated 04/29/2016, due 05/02/2016, repurchase price $6,917,834, collateralized by various U.S. Treasury Securities, ranging from 0.00% – 6.63%, maturing 11/15/2026 – 02/15/2046; U.S. Government Agency Mortgage Securities, ranging from 2.00% – 8.00%, maturing 07/20/2026 – 04/20/2046; total market value $7,056,725		6,917,655		6,917,655


	Principal Amount		Value
REPURCHASE AGREEMENTS – (continued)
Credit Suisse Securities USA LLC, 0.44%, dated 04/29/2016, due 05/02/2016, repurchase price $1,000,037, collateralized by various Common Stocks; total market value $1,111,125	$	1,000,000	$	1,000,000
Total Repurchase Agreements (Cost $7,917,655)				7,917,655
Total Securities Lending Reinvestments (Cost $13,117,655)				13,117,655
Total Investment Securities (Cost $385,911,785) – 101.6%				374,085,007
Liabilities in excess of other assets – (1.6%)				(6,052,943	)
NET ASSETS – 100.0%			$	368,032,064

*	Non-income producing security.

^	Security fair valued in accordance with procedures adopted by the Board of Trustees. At 04/30/2016, the value of these securities amounted to $2,199,067 or 0.60% of net assets.

^(a)

The security or a portion of this security is on loan at 04/30/2016. The total value of securities on loan at 04/30/2016 was $39,930,715, which was collateralized in the form of cash with a value of $13,117,655; $3,706,199 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 7.63%, and maturity dates ranging from 05/15/2016 – 11/15/2045 and $25,540,032 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 8.25%, and maturity dates ranging from 06/08/2016 – 07/22/2068; a total value of $42,363,886.

^(b)

The security was purchased with cash collateral held from securities on loan at 04/30/2016. The total value of securities purchased was $13,117,655.

^(c)

Represents 7-day effective yield as of 04/30/2016.

Percentages shown are based on Net Assets.

Abbreviations:

ADR – American Depositary Receipt

AUD – Australian Dollar

BRL – Brazilian Real

CAD – Canadian Dollar

CHF – Swiss Franc

CVA – Dutch Certificate

EUR – Euro

GBP – British Pound

HKD – Hong Kong Dollar

INR – Indian Rupee

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			201

FlexShares^® International Quality Dividend Index Fund (cont.)

JPY – Japanese Yen

KRW – Korean Won

MTF – Multilateral Trading Facility

NVDR – Non-Voting Depositary Receipt

PJSC – Public Joint Stock Company

REIT – Real Estate Investment Trust

RUB – Russian Ruble

SEK – Swedish Krona

TWD – Taiwan Dollar

USD – US Dollar

As of April 30, 2016, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:



Aggregate gross unrealized appreciation	$	20,804,744
Aggregate gross unrealized depreciation		(33,978,994	)
Net unrealized depreciation	$	(13,174,250	)
Federal income tax cost of investments	$	387,259,257

Futures Contracts

FlexShares^® International Quality Dividend Index Fund had the following open long futures contracts as of April 30, 2016:


	Number of Contracts		Expiration Date		Notional Amount at Value		Unrealized Appreciation (Depreciation)
EURO STOXX 50^® Index Futures Contracts		41		06/17/2016	$	1,397,980	$	(9,876	)
FTSE 100^® Index Futures Contracts		15		06/17/2016		1,364,994		10,148
Hang Seng Index Futures Contracts		7		05/30/2016		940,919		(19,429	)
Mini MSCI Emerging Markets Index Futures Contracts		3		06/17/2016		125,760		(1,326	)
MSCI Taiwan Index Futures Contracts		24		05/30/2016		730,560		(21,369	)
Nikkei 225 Index Futures Contracts		5		06/09/2016		377,354		(19,029	)
S&P Toronto Stock Exchange 60^® Index Futures Contracts		6		06/16/2016		779,530		28,730
SGX NIFTY 50 Index Futures Contracts		20		05/26/2016		315,700		(1,874	)
SPI 200^® Index Futures Contracts		7		06/16/2016		698,607		15,066
							$	(18,959	)

Forward Foreign Currency Contracts

FlexShares^® International Quality Dividend Index Fund had the following outstanding contracts as of April 30, 2016:


Contracts to Receive		Counterparty	In Exchange For		Receipt Date		Unrealized Appreciation (Depreciation)
CAD	128,918	Bank of Montreal	USD	97,029		06/15/2016	$	5,892
EUR	407,879	Morgan Stanley	USD	454,716		06/15/2016		13,078
GBP	115,437	Bank of New York	USD	165,569		06/15/2016		3,557
HKD	1,120,626	Societe Generale	USD	144,539		06/15/2016		(17	)
JPY	18,302,383	Bank of New York	USD	161,323		06/15/2016		9,936
SEK	337,877	Morgan Stanley	USD	40,621		06/15/2016		1,563
TWD	2,266,680	Morgan Stanley	USD	68,870		06/15/2016		1,439
USD	129,536	Citibank N.A.	AUD	172,584		06/15/2016		(1,929	)
USD	27,288	Morgan Stanley	BRL	102,881		06/15/2016		(2,101	)
USD	17,485	Citibank N.A.	CHF	17,194		06/15/2016		(488	)
USD	150,000	The Toronto-Dominion Bank	EUR	132,511		06/15/2016		(1,976	)
USD	300,000	The Toronto-Dominion Bank	GBP	206,684		06/15/2016		(2,810	)
USD	120,000	Citibank N.A.	HKD	929,934		06/15/2016		70
USD	10,022	Bank of New York	INR	681,458		06/15/2016		(165	)
USD	115,000	The Toronto-Dominion Bank	JPY	12,778,915		06/15/2016		(4,575	)
USD	100,000	Morgan Stanley	KRW	116,541,625		06/15/2016		(2,215	)
USD	81,922	Citibank N.A.	RUB	6,015,908		06/15/2016		(9,966	)
							$	9,293

See Accompanying Notes to the Financial Statements.


202		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® International Quality Dividend Index Fund (cont.)

FlexShares^® International Quality Dividend Index Fund invested, as a percentage of net assets, in companies domiciled in the following countries as of April 30, 2016:


Australia	6.6	%
Belgium	1.6
Brazil	2.5
Canada	4.9
Chile	0.0	^†
China	4.2
Colombia	0.5
Czech Republic	1.4
Denmark	0.9
Finland	3.7
France	3.9
Germany	4.3
Hong Kong	2.9
India	0.8
Indonesia	0.1
Israel	0.7
Italy	3.1
Japan	13.5
Morocco	0.1
Netherlands	2.2
Norway	2.2
Peru	0.8
Poland	1.3
Russia	2.8
Singapore	0.5
South Africa	1.6
South Korea	0.2
Spain	2.5
Sweden	2.7
Switzerland	3.7
Taiwan	3.6
Thailand	0.2
Turkey	2.0
United Kingdom	16.0
Other¹	2.0
	100.0	%

^†	Amount represents less than 0.05%.

¹	Includes any non-equity securities, securities lending reinvestments and net other assets (liabilities).

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			203

Schedule of Investments

FlexShares^® International Quality Dividend Defensive Index Fund

April 30, 2016 (Unaudited)


	Shares		Value
COMMON STOCKS – 97.9%
Air Freight & Logistics – 1.0%
bpost S.A.		15,350	$	433,111
Deutsche Post AG (Registered)		4,575		134,353
				567,464
Airlines – 0.7%
Japan Airlines Co., Ltd.		11,400		421,180
Auto Components – 0.1%
Nokian Renkaat Oyj		2,100		77,497
Automobiles – 1.1%
Fuji Heavy Industries Ltd.		11,900		413,294
Toyota Motor Corp.		4,200		221,943
				635,237
Banks – 13.5%
Aozora Bank Ltd.		125,000		456,797
Australia & New Zealand Banking Group Ltd.		18,050		334,316
Bank Hapoalim BM		4,550		23,430
Banque Cantonale Vaudoise (Registered)		150		103,521
BMCE Bank		4,725		105,804
Canadian Imperial Bank of Commerce		6,925		560,258
China Everbright Bank Co., Ltd., Class H(a)		100,000		45,506
Commercial International Bank Egypt SAE		35,700		181,637
Commonwealth Bank of Australia		26,525		1,495,722
HSBC Holdings PLC		30,125		199,689
Industrial & Commercial Bank of China Ltd., Class H		150,000		81,408
Intercorp Financial Services, Inc.		15,775		449,587
Intesa Sanpaolo SpA (Retirement Savings Plan)		37,700		99,141
Komercni banka A/S		325		66,872
Mitsubishi UFJ Financial Group, Inc.		2,500		12,152
National Bank of Canada		4,475		160,194
Nordea Bank AB		49,475		480,723


	Shares		Value
Banks – (continued)
Royal Bank of Canada		23,750	$	1,477,407
Skandinaviska Enskilda Banken AB, Class C		34,025		339,934
Swedbank AB, Class A		8,125		175,414
Westpac Banking Corp.		32,700		774,853
				7,624,365
Beverages – 0.1%
Anheuser-Busch InBev S.A./N.V.(a)		500		61,906
Capital Markets – 2.8%
Banca Generali SpA		13,925		413,557
CI Financial Corp.		7,475		165,780
Coronation Fund Managers Ltd.(a)		78,875		411,763
IGM Financial, Inc.		3,650		115,101
Partners Group Holding AG(a)		1,150		473,918
				1,580,119
Chemicals – 0.5%
BASF SE		175		14,461
Israel Chemicals Ltd.		27,725		137,715
Synthos S.A.		121,550		129,512
Yara International ASA		350		14,013
				295,701
Commercial Services & Supplies – 1.6%
Edenred(a)		22,200		437,849
KEPCO Plant Service & Engineering Co., Ltd.		1,050		69,576
Societe BIC S.A.		2,725		386,858
				894,283
Communications Equipment – 0.5%
Telefonaktiebolaget LM Ericsson, Class A		33,775		278,706
Construction & Engineering – 0.2%
Vinci S.A.(a)		1,250		93,403
Diversified Financial Services – 0.8%
Rural Electrification Corp. Ltd.		161,925		435,511

See Accompanying Notes to the Financial Statements.


204		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® International Quality Dividend Defensive Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Diversified Telecommunication Services – 5.3%
Bezeq The Israeli Telecommunication Corp. Ltd.		183,650	$	392,147
Maroc Telecom		31,725		437,803
O2 Czech Republic A/S		38,500		391,276
Proximus SADP(a)		3,675		123,644
Spark New Zealand Ltd.		51,375		133,278
TalkTalk Telecom Group PLC(a)		131,400		514,712
Telenor ASA		28,625		492,704
Telia Co. AB		6,725		32,148
Telstra Corp. Ltd.		13,800		56,449
Vivendi S.A.(a)		21,875		419,914
				2,994,075
Electric Utilities – 3.1%
CEZ A/S		1,500		29,308
Cia Energetica de Minas Gerais (Preference)		212,500		420,591
Endesa S.A.		22,150		465,150
Energa S.A.		108,475		353,272
Fortum Oyj(a)		30,275		456,329
				1,724,650
Electronic Equipment, Instruments & Components – 1.0%
Innolux Corp.		1,275,000		395,312
Murata Manufacturing Co., Ltd.		500		69,139
Synnex Technology International Corp.		100,000		99,370
				563,821
Food & Staples Retailing – 1.1%
METRO AG		7,550		213,331
Wm Morrison Supermarkets PLC		148,775		416,484
				629,815
Food Products – 3.0%
Nestle S.A. (Registered)		13,925		1,038,745
NH Foods Ltd.(a)		10,000		227,207
Orkla ASA		47,900		418,185
				1,684,137
Gas Utilities – 0.7%
Empresa de Energia de Bogota S.A. ESP		194,200		125,954


	Shares		Value
Gas Utilities – (continued)
Enagas S.A.		3,250	$	99,034
Snam SpA		25,225		153,991
				378,979
Health Care Technology – 0.4%
M3, Inc.		7,500		210,991
Hotels, Restaurants & Leisure – 2.1%
Oriental Land Co., Ltd.(a)		6,200		440,394
Sands China Ltd.(a)		110,000		394,215
SJM Holdings Ltd.(a)		550,000		370,108
				1,204,717
Household Durables – 0.7%
Berkeley Group Holdings PLC		8,475		371,830
Independent Power and Renewable Electricity Producers – 0.8%
E.ON Russia JSC		11,735,250		478,790
Industrial Conglomerates – 1.1%
HAP Seng Consolidated Bhd		217,500		426,481
Quinenco S.A.		28,600		56,295
Siemens AG (Registered)		1,050		109,582
				592,358
Insurance – 5.5%
Admiral Group PLC		15,525		422,330
Direct Line Insurance Group PLC		63,200		335,053
Dongbu Insurance Co., Ltd.		2,525		155,347
Euler Hermes Group		1,250		118,830
Gjensidige Forsikring ASA		24,050		411,867
Jardine Lloyd Thompson Group PLC		13,525		171,777
Medibank Pvt Ltd.		46,575		111,607
Muenchener Rueckversicherungs-Gesellschaft AG (Registered)		1,375		255,048
Sampo Oyj, Class A		9,950		434,538
SCOR SE(a)		3,125		106,428
Tryg A/S		16,350		308,718
Zurich Insurance Group AG*		1,250		279,995
				3,111,538

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			205

FlexShares^® International Quality Dividend Defensive Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Internet Software & Services – 0.8%
Kakaku.com, Inc.(a)		22,500	$	419,108
Tencent Holdings Ltd.		2,500		51,211
				470,319
IT Services – 0.5%
Otsuka Corp.		5,600		278,443
Leisure Products – 0.7%
Sankyo Co., Ltd.		10,600		413,122
Machinery – 3.3%
FANUC Corp.		2,500		385,649
Hino Motors Ltd.		35,000		353,942
Kone Oyj, Class B(a)		5,725		261,236
MAN SE (Preference)		950		102,127
Metso Oyj(a)		450		10,818
Minebea Co., Ltd.(a)		32,000		274,854
SKF AB, Class A		2,875		52,824
Turk Traktor ve Ziraat Makineleri A/S		14,850		440,563
				1,882,013
Media – 2.4%
Multiplus S.A.		55,000		599,122
ProSiebenSat.1 Media SE		3,150		160,622
RELX N.V.(a)		26,975		452,778
Shaw Communications, Inc., Class B(a)		7,175		133,006
				1,345,528
Metals & Mining – 4.7%
Agnico Eagle Mines Ltd.(a)		3,650		172,826
Anglo American PLC		19,575		218,908
Barrick Gold Corp.		12,200		236,578
Eregli Demir ve Celik Fabrikalari TAS		352,350		588,868
Franco-Nevada Corp.		2,383		167,605
Gold Fields Ltd.(a)		26,275		119,843
Goldcorp, Inc.		9,375		189,207
Polymetal International PLC		44,400		461,145
Severstal PAO		7,337		82,464
Severstal PAO (GDR)		38,275		444,756
				2,682,200


	Shares		Value
Multiline Retail – 0.1%
Marks & Spencer Group PLC		2,425	$	15,044
Next PLC		175		13,036
				28,080
Multi-Utilities – 1.2%
Engie S.A.(a)		12,175		200,803
RWE AG*		33,550		501,273
				702,076
Oil, Gas & Consumable Fuels – 5.9%
BP PLC		30,725		168,221
Ecopetrol S.A.		315,075		156,300
Eni SpA		41,600		676,581
Husky Energy, Inc.		11,875		149,883
Repsol S.A.		7,375		96,675
Royal Dutch Shell PLC, Class A(a)		27,599		719,448
Royal Dutch Shell PLC, Class B		21,350		558,583
Showa Shell Sekiyu KK		10,000		107,295
Surgutneftegas OAO (Preference)		25,407		16,497
Surgutneftegas OAO (Preference) (ADR)		63,430		402,781
Tatneft PAO (Preference)		17,075		50,685
TonenGeneral Sekiyu KK		5,000		48,928
TOTAL S.A.(a)		1,575		79,246
Vermilion Energy, Inc.		3,250		111,957
				3,343,080
Paper & Forest Products – 0.6%
Fibria Celulose S.A.		37,500		329,271
Personal Products – 1.5%
Unilever N.V. (CVA)		19,650		863,448
Pharmaceuticals – 7.9%
Astellas Pharma, Inc.		27,500		384,761
Bayer AG (Registered)		275		31,733
Eisai Co., Ltd.		1,000		63,882
GlaxoSmithKline PLC		79,325		1,695,405
Novartis AG (Registered)		4,975		379,938
Novo Nordisk A/S, Class B		1,375		76,787
Orion Oyj, Class A		5,725		196,648
Orion Oyj, Class B		11,050		385,505

See Accompanying Notes to the Financial Statements.


206		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® International Quality Dividend Defensive Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Pharmaceuticals – (continued)
Roche Holding AG –Genusschein		2,400	$	607,199
Sanofi		1,125		92,915
Shionogi & Co., Ltd.		10,500		553,778
				4,468,551
Real Estate Investment Trusts (REITs) – 3.2%
Fortress Income Fund Ltd., Class A(a)		101,300		114,296
Gecina S.A.		700		101,260
The GPT Group		38,725		148,652
H&R Real Estate Investment Trust		7,625		133,434
Hui Xian Real Estate Investment Trust		825,000		394,402
Klepierre		9,425		443,402
Link REIT		12,500		75,978
RioCan Real Estate Investment Trust		11,950		260,255
Smart Real Estate Investment Trust		4,475		120,324
				1,792,003
Real Estate Management & Development – 2.1%
Azrieli Group Ltd.		2,825		112,319
Chinese Estates Holdings Ltd.		50,000		124,272
Daito Trust Construction Co., Ltd.		3,200		463,423
Evergrande Real Estate Group Ltd.(a)		625,000		464,085
				1,164,099
Road & Rail – 0.7%
Aurizon Holdings Ltd.		89,625		292,057
BTS Group Holdings PCL (NVDR)		470,000		123,790
				415,847
Semiconductors & Semiconductor Equipment – 0.8%
Novatek Microelectronics Corp.		100,000		350,355
Taiwan Semiconductor Manufacturing Co., Ltd.		25,000		116,268
				466,623


	Shares		Value
Specialty Retail – 1.5%
ABC-Mart, Inc.(a)		2,500	$	167,297
Fast Retailing Co., Ltd.		400		109,108
Hennes & Mauritz AB, Class B* (a)		15,475		550,719
Nitori Holdings Co., Ltd.		500		48,040
				875,164
Technology Hardware, Storage & Peripherals – 1.6%
Asustek Computer, Inc.		13,000		114,268
Canon, Inc.		7,500		218,141
Compal Electronics, Inc.		675,000		397,637
Pegatron Corp.		50,000		105,882
Samsung Electronics Co., Ltd.		75		81,951
				917,879
Textiles, Apparel & Luxury Goods – 1.4%
HUGO BOSS AG(a)		5,125		326,896
Li & Fung Ltd.(a)		650,000		403,045
Ruentex Industries Ltd.		50,000		69,916
				799,857
Thrifts & Mortgage Finance – 0.8%
Indiabulls Housing Finance Ltd.		43,325		452,813
Tobacco – 4.3%
British American Tobacco PLC		22,900		1,398,877
Imperial Brands PLC		5,250		285,980
Japan Tobacco, Inc.		17,500		740,922
				2,425,779
Transportation Infrastructure – 1.5%
Auckland International Airport Ltd.		103,800		446,380
Jiangsu Expressway Co., Ltd., Class H		100,000		131,749
SIA Engineering Co., Ltd.		90,000		253,785
				831,914
Wireless Telecommunication Services – 2.7%
Advanced Info Service PCL (NVDR)		22,517		100,563
DiGi.Com Bhd		95,000		107,001
Freenet AG		5,825		177,933

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			207

FlexShares^® International Quality Dividend Defensive Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Wireless Telecommunication Services – (continued)
Intouch Holdings PCL (NVDR)		67,500	$	101,936
MegaFon PJSC		12,340		141,176
MegaFon PJSC (Registered) (GDR)		560		6,440
StarHub Ltd.(a)		95,000		233,957
Tele2 AB, Class B		11,250		107,417
Total Access Communication PCL (NVDR)		442,500		427,552
Turkcell Iletisim Hizmetleri A/S*		29,550		127,959
Vodafone Group PLC		1,825		5,860
				1,537,794
Total Common Stocks (Cost $56,471,059)				55,396,976
	Principal Amount
SECURITIES LENDING REINVESTMENTS(b) – 3.6%
MONEY MARKET FUNDS(c) – 1.1%
BlackRock Cash Funds – Prime, Institutional Class 0.46%	$	100,000		100,000
BlackRock Liquidity Funds, TempFund, Institutional Class 0.42%		100,000		100,000
Dreyfus Cash Advantage Fund, Institutional Class 0.37%		100,000		100,000
Fidelity Money Market Portfolio, Institutional Class 0.38%		100,000		100,000
Fidelity Prime Money Market Portfolio, Institutional Class 0.44%		100,000		100,000
Morgan Stanley Liquidity Funds – Prime, Institutional Class 0.39%		100,000		100,000
Total Money Market Funds (Cost $600,000)				600,000


	Principal Amount		Value
REPURCHASE AGREEMENTS – 2.5%
Citigroup Global Markets, Inc., 0.31%, dated 04/29/2016, due 05/02/2016, repurchase price $915,536, collateralized by various U.S. Treasury Securities, ranging from 0.00% – 6.63%, maturing 11/15/2026 –02/15/2046; U.S. Government Agency Mortgage Securities, ranging from 2.00% – 8.00%, maturing 07/20/2026 –04/20/2046; total market value $933,917	$	915,512	$	915,512
Credit Suisse Securities USA LLC, 0.44%, dated 04/29/2016, due 05/02/2016, repurchase price $540,020, collateralized by various Common Stocks; total market value $600,007		540,000		540,000
Total Repurchase Agreements (Cost $1,455,512)				1,455,512
Total Securities Lending Reinvestments (Cost $2,055,512)				2,055,512
Total Investment Securities (Cost $58,526,571) – 101.5%				57,452,488
Liabilities in excess of other assets – (1.5%)				(876,255	)
NET ASSETS – 100.0%			$	56,576,233

*	Non-income producing security.

^(a)

The security or a portion of this security is on loan at 04/30/2016. The total value of securities on loan at 04/30/2016 was $6,420,713, which was collateralized in the form of cash with a value of $2,055,512; $1,011,842 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 7.63%, and maturity dates ranging from 05/15/2016 – 11/15/2045 and $3,786,186 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 8.25%, and maturity dates ranging from 06/08/2016 – 07/22/2068; a total value of $6,853,540.

^(b)

The security was purchased with cash collateral held from securities on loan at 04/30/2016. The total value of securities purchased was $2,055,512.

^(c)

Represents 7-day effective yield as of 04/30/2016.

Percentages shown are based on Net Assets.

See Accompanying Notes to the Financial Statements.


208		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® International Quality Dividend Defensive Index Fund (cont.)

Abbreviations:

ADR – American Depositary Receipt

AUD – Australian Dollar

BRL – Brazilian Real

CAD – Canadian Dollar

CHF – Swiss Franc

CVA – Dutch Certificate

DKK – Danish Krone

EUR – Euro

GBP – British Pound

GDR – Global Depositary Receipt

HKD – Hong Kong Dollar

ILS – Israeli Shekel

INR – Indian Rupee

JPY – Japanese Yen

NOK – Norwegian Krone

NVDR – Non-Voting Depositary Receipt

NZD – New Zealand Dollar

PJSC – Public Joint Stock Company

REIT – Real Estate Investment Trust

RUB – Russian Ruble

SEK – Swedish Krona

SGD – Singapore Dollar

TWD – Taiwan Dollar

USD – US Dollar

As of April 30, 2016, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:



Aggregate gross unrealized appreciation	$	3,932,188
Aggregate gross unrealized depreciation		(5,216,884	)
Net unrealized depreciation	$	(1,284,696	)
Federal income tax cost of investments	$	58,737,184

Futures Contracts

FlexShares^® International Quality Dividend Defensive Index Fund had the following open long futures contracts as of April 30, 2016:


	Number of Contracts		Expiration Date		Notional Amount at Value		Unrealized Appreciation
Mini MSCI EAFE Index Futures Contracts		11		06/17/2016	$	914,045	$	27,380
Mini MSCI Emerging Markets Index Futures Contracts		5		06/17/2016		209,600		7,892
							$	35,272

Forward Foreign Currency Contracts

FlexShares^® International Quality Dividend Defensive Index Fund had the following outstanding contracts as of April 30, 2016:


Contracts to Receive		Counterparty	In Exchange For			Receipt Date		Unrealized Appreciation (Depreciation)
AUD	703	Bank of New York		USD	534		06/15/2016	$	1
BRL	1,548	Citibank N.A.		USD	422		06/15/2016		20
CAD	78,068	Bank of Montreal		USD	58,757		06/15/2016		3,568
DKK	1,609	Societe Generale		USD	240		06/15/2016		8
EUR	50,867	Morgan Stanley		USD	56,708		06/15/2016		1,631
GBP	21,869	Bank of New York		USD	31,366		06/15/2016		674
HKD	460,197	Societe Generale		USD	59,357		06/15/2016		(7	)
ILS	2,413	Citibank N.A.		USD	622		06/15/2016		25
INR	552,980	Bank of New York		USD	8,133		06/15/2016		133
JPY	2,090,717	Bank of New York		USD	18,428		06/15/2016		1,135
NZD	6,964	BNP Paribas S.A.		USD	4,692		06/15/2016		166
RUB	249,204	Goldman Sachs & Co.		USD	3,618		06/15/2016		188
SEK	24,597	Societe Generale		USD	3,000		06/15/2016		71
SGD	3,000	JPMorgan Chase & Co.		USD	2,203		06/15/2016		27
TWD	1,414,973	Morgan Stanley		USD	42,992		06/15/2016		898
USD	528	Citibank N.A.		AUD	703		06/15/2016		(8	)
USD	410	Morgan Stanley		BRL	1,548		06/15/2016		(31	)
USD	131,090	Citibank N.A.		CHF	128,905		06/15/2016		(3,655	)
USD	243	Bank of New York		DKK	1,609		06/15/2016		(5	)
USD	31,109	Societe Generale		GBP	21,869		06/15/2016		(931	)

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			209

FlexShares^® International Quality Dividend Defensive Index Fund (cont.)


Contracts to Receive		Counterparty	In Exchange For			Receipt Date		Unrealized Appreciation (Depreciation)
USD	629	Citibank N.A.		ILS	2,413		06/15/2016	$	(18	)
USD	8,188	Morgan Stanley		INR	552,980		06/15/2016		(79	)
USD	18,752	The Toronto-Dominion Bank		JPY	2,090,717		06/15/2016		(811	)
USD	52,383	Bank of New York		NOK	444,338		06/15/2016		(2,786	)
USD	4,643	JPMorgan Chase & Co.		NZD	6,964		06/15/2016		(215	)
USD	3,394	Citibank N.A.		RUB	249,204		06/15/2016		(413	)
USD	2,957	Morgan Stanley		SEK	24,597		06/15/2016		(114	)
USD	2,176	Societe Generale		SGD	3,000		06/15/2016		(54	)
USD	43,842	Citibank N.A.		TWD	1,414,973		06/15/2016		(48	)
								$	(630	)

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, 2016:


Australia	5.7	%
Belgium	1.1
Brazil	2.4
Canada	7.3
Chile	0.1
China	2.1
Colombia	0.5
Czech Republic	0.9
Denmark	0.7
Egypt	0.3
Finland	3.2
France	4.4
Germany	3.6
Hong Kong	2.4
India	1.6
Israel	1.2
Italy	2.4
Japan	13.3
Malaysia	0.9
Morocco	0.9
Netherlands	2.3
New Zealand	1.0
Norway	2.4
Peru	0.8
Poland	0.8
Russia	2.9
Singapore	0.9
South Africa	1.1
South Korea	0.5
Spain	1.2
Sweden	3.6
Switzerland	5.1
Taiwan	2.9
Thailand	1.3
Turkey	2.0
United Kingdom	14.1
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.


210		FLEXSHARES SEMIANNUAL REPORT

Schedule of Investments

FlexShares^® International Quality Dividend Dynamic Index Fund

April 30, 2016 (Unaudited)


	Shares		Value
COMMON STOCKS – 98.3%
Auto Components – 3.5%
Cie Generale des Etablissements Michelin		696	$	72,661
Continental AG		1,116		245,161
Faurecia		756		31,232
GKN PLC		8,268		33,756
Nokian Renkaat Oyj		6,744		248,875
Plastic Omnium S.A.		937		31,037
Sumitomo Rubber Industries Ltd.(a)		4,800		76,265
Valeo S.A.		1,560		247,375
				986,362
Automobiles – 1.4%
Fuji Heavy Industries Ltd.		6,000		208,383
Tofas Turk Otomobil Fabrikasi A/S		4,392		34,799
Toyota Motor Corp.		2,200		116,256
Yamaha Motor Co., Ltd.(a)		1,200		20,760
				380,198
Banks – 9.8%
Agricultural Bank of China Ltd., Class H		108,000		39,122
Australia & New Zealand Banking Group Ltd.		11,148		206,479
Banco Bilbao Vizcaya Argentaria S.A.		25,821		176,942
Banco Santander S.A.		51,612		261,342
Bank Handlowy w Warszawie S.A.		1,128		21,856
Bank of China Ltd., Class H		312,000		127,500
Canadian Imperial Bank of Commerce		288		23,300
Commonwealth Bank of Australia		13,548		763,960
HSBC Holdings PLC		18,072		119,793
Industrial & Commercial Bank of China Ltd., Class H		12,000		6,513
ING Groep N.V. (CVA)		9,792		119,947
Mitsubishi UFJ Financial Group, Inc.		1,200		5,833
National Bank of Canada		816		29,211
Natixis S.A.		5,664		31,249
Royal Bank of Canada		288		17,916


	Shares		Value
Banks – (continued)
Skandinaviska Enskilda Banken AB, Class A		16,428	$	157,063
Societe Generale S.A.		2,796		109,682
Sumitomo Mitsui Trust Holdings, Inc.		24,000		77,297
Swedbank AB, Class A		3,468		74,872
The Toronto-Dominion Bank		168		7,491
Westpac Banking Corp.		15,684		371,645
				2,749,013
Beverages – 0.3%
Anheuser-Busch InBev S.A./N.V.(a)		180		22,286
Coca-Cola Amatil Ltd.		8,388		55,051
				77,337
Building Products – 0.3%
Cie de Saint-Gobain		1,824		83,554
Capital Markets – 4.3%
Aberdeen Asset Management PLC		7,704		33,710
Brait SE*		20,616		231,402
CI Financial Corp.		2,184		48,436
Daiwa Securities Group, Inc.		6,000		36,237
Henderson Group PLC		77,208		289,089
IGM Financial, Inc.		9,912		312,569
Macquarie Group Ltd.		1,464		70,945
Nomura Holdings, Inc.		32,400		145,020
Schroders PLC (Non-Voting)		888		25,431
UBS Group AG (Registered)		480		8,313
				1,201,152
Chemicals – 2.4%
BASF SE		4,308		356,000
Kuraray Co., Ltd.		2,400		31,538
Sumitomo Chemical Co., Ltd.		14,000		66,209
Synthos S.A.		193,284		205,944
				659,691
Communications Equipment – 0.9%
Nokia Oyj (SIGMA X MTF)		28,812		169,949
Telefonaktiebolaget LM Ericsson, Class B		8,388		67,962
				237,911

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			211

FlexShares^® International Quality Dividend Dynamic Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Construction & Engineering – 1.9%
ACS Actividades de Construccion y Servicios S.A.		1,224	$	40,480
CIMIC Group Ltd.		11,988		327,430
HOCHTIEF AG		312		40,005
Vinci S.A.(a)		1,836		137,191
				545,106
Distributors – 0.8%
Imperial Holdings Ltd.		4,212		44,265
Inchcape PLC		17,604		174,715
				218,980
Diversified Financial Services – 0.1%
Groupe Bruxelles Lambert S.A.		420		37,103
Diversified Telecommunication Services – 2.3%
Elisa Oyj		2,640		98,604
Proximus SADP(a)		1,860		62,579
TalkTalk Telecom Group PLC(a)		58,752		230,140
Telefonica S.A.		17,544		191,335
Telia Co. AB		15,084		72,107
				654,765
Electric Utilities – 1.6%
CEZ A/S(a)		15,720		307,143
EDP – Energias de Portugal S.A.		10,656		37,884
Energa S.A.		34,416		112,083
				457,110
Electrical Equipment – 2.1%
Gamesa Corp. Tecnologica S.A.		1,800		35,450
Mitsubishi Electric Corp.		22,000		246,329
Vestas Wind Systems A/S		4,092		292,812
				574,591
Electronic Equipment, Instruments & Components – 1.1%
Hexagon AB, Class B		1,008		40,232
Omron Corp.		6,000		199,636
Synnex Technology International Corp.		36,000		35,773
WPG Holdings Ltd.		24,000		25,672
				301,313


	Shares		Value
Food & Staples Retailing – 3.6%
Distribuidora Internacional de Alimentacion S.A.* (a)		35,532	$	197,216
Koninklijke Ahold N.V.(a)		792		17,235
METRO AG(a)		9,540		303,214
Seven & i Holdings Co., Ltd.		3,000		127,380
Wesfarmers Ltd.		3,096		101,053
Wm Morrison Supermarkets PLC(a)		94,968		265,856
				1,011,954
Food Products – 0.9%
Nestle S.A. (Registered)		3,432		256,013
Gas Utilities – 0.3%
Empresa de Energia de Bogota S.A. ESP		44,172		28,649
Gas Natural SDG S.A.		3,192		66,410
				95,059
Health Care Equipment & Supplies – 1.5%
Hoya Corp.		7,200		286,735
Sartorius Stedim Biotech		216		82,507
Sysmex Corp.(a)		600		39,254
				408,496
Health Care Providers & Services – 0.3%
Medipal Holdings Corp.		4,800		78,912
Hotels, Restaurants & Leisure – 2.8%
InterContinental Hotels Group PLC		864		34,540
OPAP S.A.		30,300		229,047
Sands China Ltd.(a)		76,800		275,233
SJM Holdings Ltd.(a)		360,000		242,253
				781,073
Household Durables – 1.2%
Berkeley Group Holdings PLC		1,668		73,181
Sekisui Chemical Co., Ltd.		19,200		248,894
				322,075
Independent Power and Renewable Electricity Producers – 1.1%
E.ON Russia JSC		7,768,632		316,955

See Accompanying Notes to the Financial Statements.


212		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® International Quality Dividend Dynamic Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Industrial Conglomerates – 1.3%
Koninklijke Philips N.V.		3,588	$	98,628
Siemens AG (Registered)		2,532		264,251
				362,879
Insurance – 7.8%
Ageas		2,196		86,170
Allianz SE (Registered)		3,600		611,273
AXA S.A.(a)		7,800		196,676
BB Seguridade Participacoes S.A.		30,000		260,114
CNP Assurances		1,872		31,872
The Dai-ichi Life Insurance Co., Ltd.		3,600		46,062
Manulife Financial Corp.		7,728		114,137
Mapfre S.A.		12,816		32,513
MMI Holdings Ltd.(a)		16,404		27,381
Old Mutual PLC		18,468		50,185
Power Corp. of Canada		8,448		205,636
Power Financial Corp.		1,704		44,879
St. James’s Place PLC(a)		2,544		32,310
T&D Holdings, Inc.		3,600		36,389
UnipolSai SpA		121,824		284,364
Zurich Insurance Group AG*		588		131,710
				2,191,671
Internet Software & Services – 0.1%
Tencent Holdings Ltd.(a)		1,200		24,581
Machinery – 3.6%
Hino Motors Ltd.		18,000		182,027
Hitachi Construction Machinery Co., Ltd.		9,600		158,632
JTEKT Corp.		3,600		48,148
Komatsu Ltd.		12,000		213,823
Metso Oyj(a)		6,720		161,555
NGK Insulators Ltd.		10,000		216,272
NSK Ltd.		3,600		33,175
				1,013,632
Marine – 0.1%
Seaspan Corp.		1,200		20,292
Media – 2.0%
Multiplus S.A.		36,000		392,152
Pearson PLC		3,204		37,783


	Shares		Value
Media – (continued)
WPP PLC		5,004	$	116,993
				546,928
Metals & Mining – 5.2%
Anglo American PLC		5,460		61,059
BHP Billiton PLC		8,544		116,788
Boliden AB		17,292		301,763
China Hongqiao Group Ltd.(a)		48,000		35,209
China Molybdenum Co., Ltd., Class H^		1,440,000		241,324
Eregli Demir ve Celik Fabrikalari TAS		227,604		380,385
MMC Norilsk Nickel PJSC		70		10,183
MMC Norilsk Nickel PJSC (ADR)		12,324		181,779
voestalpine AG		3,504		126,339
				1,454,829
Multi-Utilities – 1.9%
Engie S.A.(a)		5,628		92,823
RWE AG*		17,700		264,457
RWE AG (Non-Voting) (Preference)		16,752		183,331
				540,611
Oil, Gas & Consumable Fuels – 8.3%
BP PLC		51,576		282,382
Canadian Natural Resources Ltd.		2,712		81,581
Crescent Point Energy Corp.		2,664		44,960
Ecopetrol S.A.		72,684		36,056
Eni SpA		21,444		348,764
Inter Pipeline Ltd.(a)		1,920		41,125
Origin Energy Ltd.		10,764		45,098
Repsol S.A.		24,516		321,369
Royal Dutch Shell PLC, Class A		6,689		174,368
Royal Dutch Shell PLC, Class B		5,076		132,804
Suncor Energy, Inc.		9,192		270,271
Surgutneftegas OAO (Preference)		105,703		68,636
Surgutneftegas OAO (Preference) (ADR)		32,088		203,759
TOTAL S.A.		5,246		263,954
				2,315,127

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			213

FlexShares^® International Quality Dividend Dynamic Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Paper & Forest Products – 1.2%
Mondi PLC		1,752	$	33,570
UPM-Kymmene Oyj		15,360		293,444
				327,014
Personal Products – 0.9%
Kose Corp.		2,600		249,320
Pharmaceuticals – 5.3%
AstraZeneca PLC		1,020		58,692
Bayer AG (Registered)		348		40,157
GlaxoSmithKline PLC		38,688		826,874
Novartis AG (Registered)		2,412		184,203
Novo Nordisk A/S, Class B		396		22,115
Orion Oyj, Class B		552		19,258
Roche Holding AG – BR		336		86,060
Roche Holding AG – Genusschein		672		170,016
Sanofi(a)		948		78,296
				1,485,671
Professional Services – 0.9%
Adecco S.A. (Registered)		3,084		198,682
Randstad Holding N.V.		1,044		56,087
				254,769
Real Estate Investment Trusts (REITs) – 0.9%
Hui Xian Real Estate Investment Trust		120,000		57,368
Klepierre		1,596		75,084
Unibail-Rodamco SE		456		122,213
				254,665
Real Estate Management & Development – 3.3%
Evergrande Real Estate Group Ltd.(a)		396,000		294,044
KWG Property Holding Ltd.		378,000		245,594
Land & Houses PCL (NVDR)		104,400		25,256
NTT Urban Development Corp.		10,800		105,380
Shimao Property Holdings Ltd.		192,000		266,323
				936,597
Semiconductors & Semiconductor Equipment – 1.2%
Infineon Technologies AG		4,272		60,795
MediaTek, Inc.		6,000		42,787


	Shares		Value
Semiconductors & Semiconductor Equipment – (continued)
Novatek Microelectronics Corp.		36,000	$	126,128
Siliconware Precision Industries Co., Ltd.		24,000		35,643
STMicroelectronics N.V.(a)		5,016		30,816
Taiwan Semiconductor Manufacturing Co., Ltd.		8,000		37,206
				333,375
Specialty Retail – 0.1%
Hotai Motor Co., Ltd.		3,000		29,672
Technology Hardware, Storage & Peripherals – 2.0%
Brother Industries Ltd.		2,400		28,644
Canon, Inc.		4,800		139,610
Catcher Technology Co., Ltd.		3,000		21,114
Compal Electronics, Inc.		432,000		254,488
Inventec Corp.		36,000		23,830
Samsung Electronics Co., Ltd.		36		39,337
Seiko Epson Corp.(a)		2,400		41,408
				548,431
Textiles, Apparel & Luxury Goods – 0.7%
Ruentex Industries Ltd.		144,000		201,358
Tobacco – 3.7%
British American Tobacco PLC		14,712		898,702
Japan Tobacco, Inc.		3,100		131,249
				1,029,951
Transportation Infrastructure – 0.1%
Abertis Infraestructuras S.A.(a)		2,316		39,060
Wireless Telecommunication Services – 3.2%
Freenet AG		2,268		69,279
Intouch Holdings PCL (NVDR)		15,600		23,559
Mobile TeleSystems PJSC (ADR)		17,148		158,791
MTN Group Ltd.		11,244		118,191
SoftBank Group Corp.		1,400		78,351
Turkcell Iletisim Hizmetleri A/S*		7,272		31,490
Vodacom Group Ltd.(a)		13,332		155,594
Vodafone Group PLC		80,736		259,248
				894,503
Total Common Stocks (Cost $28,872,693)				27,489,659

See Accompanying Notes to the Financial Statements.


214		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® International Quality Dividend Dynamic Index Fund (cont.)


	Principal Amount		Value
SECURITIES LENDING REINVESTMENTS(b) – 2.3%
MONEY MARKET FUNDS(c) – 1.8%
BlackRock Cash Funds – Prime, Institutional Class 0.46%	$	100,000	$	100,000
Dreyfus Cash Advantage Fund, Institutional Class 0.37%		100,000		100,000
Fidelity Money Market Portfolio, Institutional Class 0.38%		100,000		100,000
Fidelity Prime Money Market Portfolio, Institutional Class 0.44%		100,000		100,000
Morgan Stanley Liquidity Funds – Prime, Institutional Class 0.39%		100,000		100,000
Total Money Market Funds (Cost $500,000)				500,000

REPURCHASE AGREEMENT – 0.5%
Citigroup Global Markets, Inc., 0.31%, dated 04/29/2016, due 05/02/2016, repurchase price $153,144, collateralized by various U.S. Treasury Securities, ranging from 0.00% – 6.63%, maturing 11/15/2026 – 02/15/2046; U.S. Government Agency Mortgage Securities, ranging from 2.00% – 8.00%, maturing 07/20/2026 – 04/20/2046; total market value $156,219		153,141		153,141
Total Repurchase Agreements (Cost $153,141)				153,141
Total Securities Lending Reinvestments (Cost $653,141)				653,141
Total Investment Securities (Cost $29,525,834) – 100.6%				28,142,800
Liabilities in excess of other assets – (0.6%)				(180,030	)
NET ASSETS – 100.0%			$	27,962,770

*	Non-income producing security.

^	Security fair valued in accordance with procedures adopted by the Board of Trustees. At 04/30/2016, the value of these securities amounted to $241,324 or 0.86% of net assets.

^(a)

The security or a portion of this security is on loan at 04/30/2016. The total value of securities on loan at 04/30/2016 was $2,656,423, which was collateralized in the form of cash with a value of $653,141; $198,773 of collateral in the form of U.S. Government Treasury Securities, interest rates ranging from 0.00% – 7.63%, and maturity dates ranging from 05/15/2016 – 11/15/2045 and $1,967,647 of collateral in the form of Foreign Government Fixed Income Securities, interest rates ranging from 0.00% – 8.25%, and maturity dates ranging from 06/08/2016 – 07/22/2068; a total value of $2,819,561.

^(b)

The security was purchased with cash collateral held from securities on loan at 04/30/2016. The total value of securities purchased was $653,141.

^(c)

Represents 7-day effective yield as of 04/30/2016.

Percentages shown are based on Net Assets.

Abbreviations:

ADR – American Depositary Receipt

AUD – Australian Dollar

CAD – Canadian Dollar

CHF – Swiss Franc

CZK – Czech Koruna

CVA – Dutch Certificate

EUR – Euro

GBP – British Pound

HKD – Hong Kong Dollar

JPY – Japanese Yen

MTF – Multilateral Trading Facility

NVDR – Non-Voting Depositary Receipt

PJSC – Public Joint Stock Company

REIT – Real Estate Investment Trust

SEK – Swedish Krona

TWD – Taiwan Dollar

USD – US Dollar

As of April 30, 2016, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:



Aggregate gross unrealized appreciation	$	1,245,180
Aggregate gross unrealized depreciation		(2,863,392	)
Net unrealized depreciation	$	(1,618,212	)
Federal income tax cost of investments	$	29,761,012

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			215

FlexShares^® International Quality Dividend Dynamic Index Fund (cont.)

Futures Contracts

FlexShares^® International Quality Dividend Dynamic Index Fund had the following open long futures contracts as of April 30, 2016:


	Number of Contracts		Expiration Date		Notional Amount at Value		Unrealized Appreciation
Mini MSCI EAFE Index Futures Contracts		4		06/17/2016	$	332,380	$	12,049
Mini MSCI Emerging Markets Index Futures Contracts		2		06/17/2016		83,840		3,614
							$	15,663

Forward Foreign Currency Contracts

FlexShares^® International Quality Dividend Dynamic Index Fund had the following outstanding contracts as of April 30, 2016:


Contracts to Receive		Counterparty	In Exchange For			Receipt Date		Unrealized Appreciation (Depreciation)
AUD	356	Citibank N.A.		USD	267		06/15/2016	$	4
CAD	84,528	Goldman Sachs & Co.		USD	64,070		06/15/2016		3,412
CHF	2,910	Citibank N.A.		USD	2,960		06/15/2016		83
CZK	91,573	The Toronto-Dominion Bank		USD	3,811		06/15/2016		71
EUR	21,187	Morgan Stanley		USD	23,620		06/15/2016		679
GBP	20,271	Bank of New York		USD	29,075		06/15/2016		624
HKD	194,231	Societe Generale		USD	25,052		06/15/2016		(3	)
JPY	3,209,928	Bank of New York		USD	28,293		06/15/2016		1,743
SEK	126,891	Societe Generale		USD	15,478		06/15/2016		364
TWD	2,600,000	Morgan Stanley		USD	78,997		06/15/2016		1,650
USD	271	Bank of New York		AUD	356		06/15/2016		—	^†
USD	63,619	Bank of Montreal		CAD	84,528		06/15/2016		(3,863	)
USD	3,006	Bank of New York		CHF	2,910		06/15/2016		(35	)
USD	3,770	Morgan Stanley		CZK	91,573		06/15/2016		(112	)
USD	23,846	Bank of New York		EUR	21,187		06/15/2016		(453	)
USD	28,836	Societe Generale		GBP	20,271		06/15/2016		(863	)
USD	25,067	JPMorgan Chase & Co.		HKD	194,231		06/15/2016		17
USD	28,790	The Toronto-Dominion Bank		JPY	3,209,928		06/15/2016		(1,246	)
USD	15,255	Morgan Stanley		SEK	126,891		06/15/2016		(587	)
USD	80,108	Morgan Stanley		TWD	2,600,000		06/15/2016		(540	)
								$	945

^†	Amount is less than $0.50.

See Accompanying Notes to the Financial Statements.


216		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® International Quality Dividend Dynamic Index Fund (cont.)

FlexShares^® International Quality Dividend Dynamic Index Fund invested, as a percentage of net assets, in companies domiciled in the following countries as of April 30, 2016:


Australia	6.9	%
Austria	0.5
Belgium	0.7
Brazil	2.3
Canada	4.4
China	4.9
Colombia	0.2
Czech Republic	1.1
Denmark	1.1
Finland	3.6
France	6.1
Germany	8.7
Greece	0.8
Hong Kong	1.9
Italy	2.3
Japan	13.3
Netherlands	1.0
Poland	1.2
Portugal	0.1
Russia	3.4
South Africa	2.1
South Korea	0.1
Spain	4.9
Sweden	2.6
Switzerland	3.7
Taiwan	3.0
Thailand	0.2
Turkey	1.6
United Kingdom	15.6
Other¹	1.7
	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			217

Schedule of Investments

FlexShares^® iBoxx 3-Year Target Duration TIPS Index Fund

April 30, 2016 (Unaudited)


	Principal Amount		Value
U.S. TREASURY OBLIGATIONS – 99.8%
U.S. Treasury Inflation Index Notes
2.63%, due 07/15/2017	$	33,651,087	$	35,291,577
1.63%, due 01/15/2018		39,067,818		40,740,432
0.13%, due 04/15/2018		467,317,912		475,094,316
1.38%, due 07/15/2018		149,935,166		157,877,082
2.13%, due 01/15/2019		148,384,497		159,837,955
0.13%, due 04/15/2019		461,003,934		470,909,018
1.88%, due 07/15/2019		244,220,050		265,035,755
1.38%, due 01/15/2020		43,700,609		46,701,683
0.13%, due 04/15/2020		106,807,655		108,977,228
1.25%, due 07/15/2020		74,067,138		79,477,490
Total U.S. Treasury Obligations (Cost $1,820,391,715)				1,839,942,536

Total Investment Securities (Cost $1,820,391,715) – 99.8%				1,839,942,536
Other assets less liabilities – 0.2%				3,661,400
NET ASSETS – 100.0%			$	1,843,603,936

Percentages shown are based on Net Assets.

As of April 30, 2016, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:



Aggregate gross unrealized appreciation	$	20,457,089
Aggregate gross unrealized depreciation		(971,247	)
Net unrealized appreciation	$	19,485,842
Federal income tax cost of investments	$	1,820,456,694

See Accompanying Notes to the Financial Statements.


218		FLEXSHARES SEMIANNUAL REPORT

Schedule of Investments

FlexShares^® iBoxx 5-Year Target Duration TIPS Index Fund

April 30, 2016 (Unaudited)


	Principal Amount		Value
U.S. TREASURY OBLIGATIONS – 99.8%
U.S. Treasury Inflation Index Notes
1.88%, due 07/15/2019	$	10,202,164	$	11,071,729
1.38%, due 01/15/2020		12,585,512		13,449,803
0.13%, due 04/15/2020		32,082,392		32,734,078
1.25%, due 07/15/2020		69,588,796		74,672,021
1.13%, due 01/15/2021		78,551,682		83,841,557
0.13%, due 04/15/2021		31,702,943		32,426,401
0.63%, due 07/15/2021		74,513,181		78,174,625
0.13%, due 01/15/2022		85,437,834		86,732,771
0.13%, due 07/15/2022		25,670,799		26,126,119
0.13%, due 01/15/2023		25,523,054		25,762,363
0.38%, due 07/15/2023		25,315,092		26,104,217
0.63%, due 01/15/2024		25,223,100		26,326,533
Total U.S. Treasury Obligations (Cost $507,748,190)				517,422,217

Total Investment Securities (Cost $507,748,190) – 99.8%				517,422,217
Other assets less liabilities – 0.2%				891,638
NET ASSETS – 100.0%			$	518,313,855

Percentages shown are based on Net Assets.

As of April 30, 2016, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:



Aggregate gross unrealized appreciation	$	8,946,511
Aggregate gross unrealized depreciation		—
Net unrealized appreciation	$	8,946,511
Federal income tax cost of investments	$	508,475,706

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			219

Schedule of Investments

FlexShares^® Disciplined Duration MBS Index Fund

April 30, 2016 (Unaudited)


	Principal Amount		Value
U.S. GOVERNMENT & AGENCY SECURITIES – 98.2%
Federal Home Loan Mortgage Corp.
4.50%, due 01/01/2018	$	134,619	$	138,405
4.50%, due 08/01/2018		127,651		131,295
4.00%, due 06/01/2019		29,091		30,211
4.50%, due 07/01/2019		55,766		57,438
4.50%, due 02/01/2020		320,074		331,658
5.00%, due 07/01/2020		67,182		69,629
5.00%, due 05/01/2023		585,442		612,536
4.00%, due 04/01/2025		689,219		716,265
2.50%, due 10/01/2027		186,725		192,999
2.50%, due 04/01/2028		46,519		48,024
2.50%, due 11/01/2028		33,885		34,982
3.00%, due 06/01/2029		144,333		151,661
6.00%, due 04/01/2034		122,946		141,625
5.50%, due 07/01/2038		11,629		13,043
5.50%, due 12/01/2038		35,627		40,008
5.00%, due 02/01/2039		38,794		42,653
6.50%, due 04/01/2039		82,935		95,142
5.00%, due 05/01/2039		217,793		241,899
5.00%, due 08/01/2039		16,867		18,704
5.00%, due 09/01/2039		23,499		25,845
4.50%, due 10/01/2039		44,017		48,056
4.00%, due 02/01/2040		25,108		26,884
5.50%, due 06/01/2040		107,999		120,297
3.50%, due 12/01/2040		244,814		257,064
4.00%, due 01/01/2041		172,718		185,826
4.50%, due 03/01/2041		82,524		90,388
5.50%, due 04/01/2041		52,787		58,932
4.50%, due 08/01/2041		238,673		260,780
4.00%, due 04/01/2042		195,214		209,599
3.00%, due 03/01/2043		50,556		51,902
3.00%, due 06/01/2043		261,590		268,500
4.00%, due 06/01/2044		32,498		34,719
4.50%, due 09/01/2044		232,253		252,849
4.50%, due 12/01/2044		169,216		184,266
3.00%, due 07/01/2045		144,587		148,317
3.00%, due 04/01/2046		350,000		359,031
6.00%, due 05/15/2046 TBA		80,000		90,721
Federal National Mortgage Association
5.00%, due 01/01/2018		224,636		231,923
4.50%, due 10/01/2018		200,565		206,414


	Principal Amount		Value
4.50%, due 11/01/2018	$	66,337	$	68,266
4.00%, due 12/01/2018		130,228		135,636
4.00%, due 07/01/2019		28,571		29,758
5.00%, due 07/01/2019		226,217		237,260
4.50%, due 10/01/2019		205,522		211,476
4.00%, due 03/01/2020		228,309		237,790
4.50%, due 04/01/2020		46,681		48,678
5.00%, due 09/01/2020		105,985		112,739
4.50%, due 11/01/2020		304,327		314,594
5.00%, due 11/01/2021		114,995		119,828
5.50%, due 04/01/2022		204,230		217,971
5.00%, due 12/01/2023		51,183		56,601
5.00%, due 07/01/2024		228,664		252,867
5.00%, due 02/01/2025		139,464		154,226
2.50%, due 06/01/2027		40,741		42,088
2.50%, due 08/01/2027		69,626		71,927
2.50%, due 12/01/2027		62,080		64,284
2.50%, due 12/01/2027		182,691		188,734
3.00%, due 03/01/2028		70,333		73,830
2.50%, due 06/01/2028		58,716		60,714
3.00%, due 06/01/2028		87,115		91,620
3.00%, due 07/01/2028		66,315		69,683
2.50%, due 08/01/2028		123,124		127,736
2.50%, due 09/01/2028		111,258		114,909
2.50%, due 09/01/2028		100,968		104,544
3.00%, due 11/01/2028		65,197		68,507
3.00%, due 09/01/2030		145,196		152,209
3.00%, due 11/01/2030		209,117		218,672
3.00%, due 05/25/2031 TBA		245,000		255,926
6.00%, due 08/01/2034		364,508		420,035
6.50%, due 09/01/2034		369,957		450,658
6.00%, due 10/01/2034		254,886		290,763
6.00%, due 11/01/2035		77,358		89,508
5.50%, due 02/01/2037		28,670		32,762
6.00%, due 08/01/2037		143,050		165,739
5.50%, due 09/01/2038		64,250		72,324
5.00%, due 01/01/2039		24,535		27,132
5.50%, due 01/01/2040		69,702		78,419
5.50%, due 04/01/2040		104,595		118,501
4.50%, due 04/01/2040		42,500		46,375
3.50%, due 11/01/2040		188,310		197,720
3.50%, due 01/01/2041		61,177		64,235
4.50%, due 02/01/2041		73,015		79,493
3.50%, due 02/01/2041		119,361		125,331
4.00%, due 02/01/2041		219,777		235,611

See Accompanying Notes to the Financial Statements.


220		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Disciplined Duration MBS Index Fund (cont.)


	Principal Amount		Value
U.S. GOVERNMENT & AGENCY SECURITIES – (continued)
4.00%, due 02/01/2041	$	56,239	$	60,265
4.50%, due 04/01/2041		296,090		323,232
5.50%, due 04/01/2041		16,907		18,929
4.50%, due 06/01/2041		60,050		66,244
4.50%, due 08/01/2041		82,334		90,010
5.50%, due 08/01/2041		264,174		300,290
5.50%, due 09/01/2041		98,784		111,005
4.00%, due 01/01/2042		126,190		135,234
3.50%, due 01/01/2042		206,791		217,153
4.50%, due 01/01/2042		87,925		95,954
4.50%, due 01/01/2042		185,123		202,184
3.50%, due 02/01/2042		178,991		187,935
3.50%, due 04/01/2042		145,342		152,635
3.50%, due 08/01/2042		234,306		245,966
2.50%, due 11/01/2042		131,350		130,748
3.00%, due 02/01/2043		468,361		481,678
2.50%, due 02/01/2043		145,899		145,232
2.50%, due 03/01/2043		135,058		134,439
3.00%, due 05/01/2043		20,282		20,909
3.00%, due 05/01/2043		178,835		184,097
3.00%, due 05/01/2043		19,927		20,480
3.00%, due 05/01/2043		167,226		171,981
2.50%, due 05/01/2043		169,419		168,642
3.00%, due 06/01/2043		160,137		164,571
3.50%, due 07/01/2043		90,137		94,671
3.50%, due 07/01/2043		154,856		162,598
3.50%, due 08/01/2043		152,053		159,635
4.00%, due 08/01/2043		62,992		67,457
4.50%, due 09/01/2043		153,461		167,737
4.00%, due 09/01/2043		168,428		181,745
3.00%, due 11/01/2043		78,390		80,554
5.00%, due 03/01/2044		156,745		177,291
5.00%, due 05/01/2044		222,240		246,440
5.00%, due 06/01/2044		95,824		106,319
4.50%, due 10/01/2044		368,781		403,208
4.00%, due 02/01/2045		167,672		179,183
3.00%, due 02/01/2045		179,098		183,807
4.00%, due 02/01/2045		102,488		109,545
3.00%, due 03/01/2045		119,868		123,019
3.00%, due 04/01/2045		170,498		174,981
4.00%, due 04/01/2045		92,598		99,927
3.00%, due 05/01/2045		285,898		293,415
4.00%, due 09/01/2045		187,160		200,134
4.00%, due 11/01/2045		174,049		187,984
3.00%, due 04/01/2046		249,445		256,004
6.50%, due 05/25/2046 TBA		140,000		160,382


	Principal Amount		Value
Government National Mortgage Association
2.50%, due 12/20/2028	$	113,696	$	117,586
6.00%, due 03/15/2033		412,222		476,966
5.50%, due 06/15/2033		460,904		527,612
5.50%, due 06/15/2033		171,363		196,214
6.00%, due 12/15/2033		264,503		305,581
5.50%, due 03/20/2036		569,196		636,589
5.50%, due 03/15/2038		237,122		265,725
6.00%, due 03/15/2039		39,331		45,373
5.00%, due 04/15/2039		232,906		257,025
5.00%, due 04/15/2039		67,499		75,221
5.00%, due 05/15/2039		191,831		213,676
5.00%, due 06/15/2039		430,471		482,485
5.00%, due 09/15/2039		368,631		414,000
5.50%, due 09/15/2039		50,387		56,460
4.00%, due 09/20/2039		69,507		74,774
5.00%, due 11/15/2039		4,595		5,117
5.50%, due 12/15/2039		142,405		159,584
4.00%, due 08/15/2040		46,549		50,245
4.00%, due 10/15/2040		42,207		45,370
5.50%, due 01/20/2041		74,081		82,814
4.00%, due 03/15/2041		9,784		10,521
5.50%, due 09/20/2041		270,294		300,260
3.50%, due 01/15/2042		52,147		55,129
5.50%, due 02/20/2042		69,061		75,779
3.50%, due 08/20/2042		90,370		95,774
3.50%, due 12/20/2042		30,082		31,884
3.00%, due 12/20/2042		63,023		65,469
5.50%, due 02/20/2043		40,229		44,428
3.00%, due 02/20/2043		124,082		129,093
3.50%, due 03/15/2043		74,291		78,770
3.00%, due 03/20/2043		264,170		274,432
3.00%, due 05/15/2043		348,400		362,204
3.50%, due 06/15/2043		233,467		247,426
3.50%, due 06/15/2043		150,022		158,963
5.00%, due 01/20/2044		14,941		16,261
4.00%, due 08/15/2044		276,860		298,583
3.50%, due 08/20/2044		209,554		222,012
4.00%, due 09/15/2044		87,559		93,866
3.50%, due 10/15/2044		152,624		161,769
3.50%, due 10/20/2044		36,050		38,193
4.00%, due 12/15/2044		166,676		178,683
3.50%, due 12/20/2044		113,373		119,901
3.00%, due 12/20/2044		105,680		109,639
3.00%, due 01/20/2045		130,063		134,936
4.00%, due 01/20/2045		141,731		153,204

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			221

FlexShares^® Disciplined Duration MBS Index Fund (cont.)


	Principal Amount		Value
U.S. GOVERNMENT & AGENCY SECURITIES – (continued)
3.50%, due 02/20/2045	$	154,925	$	163,842
3.50%, due 02/20/2045		178,410		189,248
3.00%, due 03/15/2045		247,708		257,481
3.00%, due 03/20/2045		160,181		166,183
3.50%, due 04/20/2045		186,786		197,557
4.00%, due 06/20/2045		194,642		208,023
3.00%, due 07/20/2045		143,433		148,807
3.50%, due 07/20/2045		186,317		197,062
3.50%, due 12/20/2045		464,697		491,646
3.00%, due 12/20/2045		221,346		229,639
3.00%, due 01/20/2046		296,923		308,048
4.00%, due 03/20/2046		498,465		534,135
3.50%, due 04/20/2046		300,000		317,381
Total U.S. Government & Agency Securities (Cost $31,512,271)				31,618,666

Total Investment Securities (Cost $31,512,271) – 98.2%				31,618,666
Other assets less liabilities – 1.8%				578,106
NET ASSETS – 100.0%			$	32,196,772

Percentages shown are based on Net Assets.

Abbreviation:

TBA – To Be Announced; Security is subject to delayed delivery

As of April 30, 2016, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:



Aggregate gross unrealized appreciation	$	182,561
Aggregate gross unrealized depreciation		(76,166	)
Net unrealized appreciation	$	106,395
Federal income tax cost of investments	$	31,512,271

See Accompanying Notes to the Financial Statements.


222		FLEXSHARES SEMIANNUAL REPORT

Schedule of Investments

FlexShares^® Credit-Scored US Corporate Bond Index Fund

April 30, 2016 (Unaudited)


	Principal Amount		Value
CORPORATE BONDS – 98.6%
Aerospace & Defense – 1.3%
The Boeing Co.
4.88%, due 02/15/2020	$	10,000	$	11,262
L-3 Communications Corp.
4.75%, due 07/15/2020		20,000		21,416
Lockheed Martin Corp.
3.35%, due 09/15/2021		50,000		53,423
3.55%, due 01/15/2026		70,000		75,191
Northrop Grumman Corp.
3.25%, due 08/01/2023		20,000		21,104
Raytheon Co.
3.13%, due 10/15/2020		20,000		21,277
United Technologies Corp.
4.50%, due 04/15/2020		80,000		89,022
				292,695
Air Freight & Logistics – 0.2%
FedEx Corp.
3.20%, due 02/01/2025		20,000		20,691
United Parcel Service, Inc.
2.45%, due 10/01/2022		30,000		31,065
				51,756
Auto Components – 0.4%
Delphi Automotive PLC
3.15%, due 11/19/2020		80,000		81,574
Banks – 24.5%
Bank of America Corp.
2.60%, due 01/15/2019		370,000		376,677
4.20%, due 08/26/2024		320,000		326,463
4.00%, due 01/22/2025		105,000		105,350
Bank of Montreal
2.55%, due 11/06/2022		20,000		20,337
The Bank of Nova Scotia
2.05%, due 06/05/2019		80,000		80,722
Barclays Bank PLC
5.14%, due 10/14/2020		200,000		215,377
BB&T Corp.
2.45%, due 01/15/2020		80,000		81,995
BNP Paribas S.A.
5.00%, due 01/15/2021		90,000		100,925


	Principal Amount		Value
Banks – (continued)
Citigroup, Inc.
2.50%, due 09/26/2018	$	300,000	$	305,499
3.30%, due 04/27/2025		200,000		201,948
4.40%, due 06/10/2025		120,000		124,085
Citizens Financial Group, Inc.
4.30%, due 12/03/2025		60,000		62,027
Commonwealth Bank of Australia
2.40%, due 11/02/2020		78,000		79,203
Fifth Third Bancorp
2.88%, due 07/27/2020		120,000		122,028
3.50%, due 03/15/2022		60,000		62,637
HSBC Holdings PLC
4.00%, due 03/30/2022		110,000		116,668
JPMorgan Chase & Co.
2.20%, due 10/22/2019		475,000		481,432
3.38%, due 05/01/2023		260,000		263,321
3.13%, due 01/23/2025		230,000		230,882
3.30%, due 04/01/2026		150,000		152,081
KeyCorp
5.10%, due 03/24/2021		100,000		111,528
Lloyds Bank PLC
1.75%, due 05/14/2018		150,000		150,139
6.38%, due 01/21/2021		15,000		17,594
Mitsubishi UFJ Financial Group, Inc.
2.95%, due 03/01/2021		200,000		204,407
MUFG Americas Holdings Corp.
2.25%, due 02/10/2020		100,000		100,185
The PNC Financial Services Group, Inc.
3.90%, due 04/29/2024		50,000		53,101
PNC Funding Corp.
3.30%, due 03/08/2022		230,000		242,842
Royal Bank of Canada
2.35%, due 10/30/2020		50,000		50,875
Sumitomo Mitsui Banking Corp.
1.95%, due 07/23/2018		250,000		251,208
Sumitomo Mitsui Financial Group, Inc.
3.78%, due 03/09/2026		100,000		104,637
U.S. Bancorp/Minnesota
2.95%, due 07/15/2022		100,000		103,104

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			223

FlexShares^® Credit-Scored US Corporate Bond Index Fund (cont.)


	Principal Amount		Value
CORPORATE BONDS – (continued)
Banks – (continued)
Wells Fargo & Co.
2.13%, due 04/22/2019	$	200,000	$	203,701
4.48%, due 01/16/2024		330,000		357,577
3.55%, due 09/29/2025		100,000		104,904
Westpac Banking Corp.
2.60%, due 11/23/2020		100,000		102,298
				5,667,757
Beverages – 2.4%
Anheuser-Busch InBev Finance, Inc.
1.90%, due 02/01/2019		200,000		202,948
3.30%, due 02/01/2023		100,000		104,311
Anheuser-Busch InBev Worldwide, Inc.
5.00%, due 04/15/2020		40,000		44,593
The Coca-Cola Co.
1.15%, due 04/01/2018		100,000		100,472
PepsiCo, Inc.
3.60%, due 03/01/2024		100,000		109,872
				562,196
Biotechnology – 2.3%
Amgen, Inc.
2.20%, due 05/22/2019		100,000		102,189
2.70%, due 05/01/2022		70,000		71,722
Biogen, Inc.
3.63%, due 09/15/2022		100,000		106,854
Celgene Corp.
2.13%, due 08/15/2018		100,000		101,407
Gilead Sciences, Inc.
2.05%, due 04/01/2019		40,000		40,874
3.50%, due 02/01/2025		100,000		106,314
				529,360
Capital Markets – 9.6%
The Bank of New York Mellon Corp.
3.65%, due 02/04/2024		150,000		161,366
BlackRock, Inc.
5.00%, due 12/10/2019		40,000		44,777
Credit Suisse AG
1.70%, due 04/27/2018		230,000		229,910


	Principal Amount		Value
Capital Markets – (continued)
Deutsche Bank AG
3.70%, due 05/30/2024	$	50,000	$	50,107
The Goldman Sachs Group, Inc.
2.90%, due 07/19/2018		250,000		256,183
2.63%, due 01/31/2019		200,000		204,230
3.63%, due 01/22/2023		150,000		155,680
4.00%, due 03/03/2024		210,000		221,939
3.50%, due 01/23/2025		55,000		55,721
Morgan Stanley
6.63%, due 04/01/2018		150,000		163,706
2.50%, due 01/24/2019		200,000		203,487
3.75%, due 02/25/2023		200,000		208,766
3.88%, due 01/27/2026		100,000		103,974
State Street Corp.
2.55%, due 08/18/2020		150,000		154,628
				2,214,474
Chemicals – 1.9%
CF Industries, Inc.
6.88%, due 05/01/2018		35,000		38,155
The Dow Chemical Co.
4.25%, due 11/15/2020		150,000		163,710
E.I. du Pont de Nemours & Co.
4.25%, due 04/01/2021		100,000		110,034
LYB International Finance B.V.
4.00%, due 07/15/2023		50,000		53,406
Monsanto Co.
3.38%, due 07/15/2024		20,000		20,576
Praxair, Inc.
4.50%, due 08/15/2019		50,000		54,603
				440,484
Commercial Services & Supplies – 0.7%
Republic Services, Inc.
3.80%, due 05/15/2018		145,000		151,826
Communications Equipment – 0.4%
Cisco Systems, Inc.
2.13%, due 03/01/2019		30,000		30,786
3.00%, due 06/15/2022		30,000		31,832
3.50%, due 06/15/2025		20,000		21,959
				84,577

See Accompanying Notes to the Financial Statements.


224		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Credit-Scored US Corporate Bond Index Fund (cont.)


	Principal Amount		Value
CORPORATE BONDS – (continued)
Consumer Finance – 5.9%
American Express Co.
1.55%, due 05/22/2018	$	210,000	$	210,597
3.63%, due 12/05/2024		60,000		60,348
Capital One Financial Corp.
3.50%, due 06/15/2023		200,000		203,095
Discover Financial Services
3.75%, due 03/04/2025		40,000		39,722
General Motors Financial Co., Inc.
4.38%, due 09/25/2021		350,000		370,541
HSBC Finance Corp.
6.68%, due 01/15/2021		50,000		57,504
HSBC USA, Inc.
1.70%, due 03/05/2018		100,000		100,128
2.75%, due 08/07/2020		100,000		101,845
John Deere Capital Corp.
2.80%, due 03/04/2021		20,000		20,814
3.35%, due 06/12/2024		20,000		21,228
Synchrony Financial
3.00%, due 08/15/2019		100,000		101,540
Toyota Motor Credit Corp.
4.50%, due 06/17/2020		70,000		77,692
				1,365,054
Containers & Packaging – 0.1%
International Paper Co.
7.95%, due 06/15/2018		30,000		33,791
Diversified Financial Services – 1.7%
Berkshire Hathaway, Inc.
2.20%, due 03/15/2021		65,000		66,792
Intercontinental Exchange, Inc.
2.75%, due 12/01/2020		100,000		103,109
National Rural Utilities Cooperative Finance Corp.
2.85%, due 01/27/2025		60,000		61,300
Shell International Finance B.V.
2.13%, due 05/11/2020		110,000		111,546
3.25%, due 05/11/2025		55,000		56,953
				399,700


	Principal Amount		Value
Diversified Telecommunication Services – 4.7%
AT&T, Inc.
2.30%, due 03/11/2019	$	60,000	$	61,401
2.80%, due 02/17/2021		300,000		307,215
3.00%, due 02/15/2022		60,000		61,450
3.80%, due 03/15/2022		50,000		53,029
Verizon Communications, Inc.
2.55%, due 06/17/2019		50,000		51,588
2.63%, due 02/21/2020		100,000		103,130
3.00%, due 11/01/2021		300,000		311,405
3.50%, due 11/01/2024		120,000		125,319
				1,074,537
Electric Utilities – 1.8%
Duke Energy Carolinas LLC
3.90%, due 06/15/2021		60,000		65,770
Exelon Corp.
2.85%, due 06/15/2020		110,000		112,362
MidAmerican Energy Co.
3.50%, due 10/15/2024		50,000		53,747
Pacific Gas & Electric Co.
2.95%, due 03/01/2026		100,000		102,602
Public Service Electric & Gas Co.
2.38%, due 05/15/2023		30,000		30,223
Virginia Electric & Power Co.
3.15%, due 01/15/2026		50,000		52,651
				417,355
Electrical Equipment – 0.1%
Eaton Corp.
2.75%, due 11/02/2022		30,000		30,404
Energy Equipment & Services – 0.5%
Halliburton Co.
2.70%, due 11/15/2020		30,000		30,424
3.25%, due 11/15/2021		30,000		31,007
3.80%, due 11/15/2025		50,000		51,627
				113,058
Food & Staples Retailing – 1.9%
CVS Health Corp.
4.00%, due 12/05/2023		100,000		110,268
3.38%, due 08/12/2024		100,000		105,271
The Kroger Co.
2.30%, due 01/15/2019		40,000		40,829

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			225

FlexShares^® Credit-Scored US Corporate Bond Index Fund (cont.)


	Principal Amount		Value
CORPORATE BONDS – (continued)
Food & Staples Retailing – (continued)
Walgreen Co.
5.25%, due 01/15/2019	$	56,000	$	60,717
Walgreens Boots Alliance, Inc.
3.80%, due 11/18/2024		20,000		20,908
Wal-Mart Stores, Inc.
4.25%, due 04/15/2021		90,000		101,306
				439,299
Food Products – 0.3%
General Mills, Inc.
2.20%, due 10/21/2019		30,000		30,698
Tyson Foods, Inc.
4.50%, due 06/15/2022		24,000		26,594
				57,292
Health Care Equipment & Supplies – 0.8%
Abbott Laboratories
2.55%, due 03/15/2022		40,000		39,852
Becton Dickinson and Co.
3.13%, due 11/08/2021		50,000		51,744
Stryker Corp.
3.50%, due 03/15/2026		80,000		84,058
				175,654
Health Care Providers & Services – 2.1%
Aetna, Inc.
2.75%, due 11/15/2022		50,000		50,590
Anthem, Inc.
2.25%, due 08/15/2019		50,000		50,234
Cardinal Health, Inc.
3.75%, due 09/15/2025		50,000		53,711
Express Scripts Holding Co.
2.25%, due 06/15/2019		30,000		30,372
3.90%, due 02/15/2022		50,000		52,665
McKesson Corp.
2.28%, due 03/15/2019		60,000		61,038
Medco Health Solutions, Inc.
7.13%, due 03/15/2018		30,000		32,976
UnitedHealth Group, Inc.
2.70%, due 07/15/2020		15,000		15,640
2.88%, due 12/15/2021		40,000		41,802
3.35%, due 07/15/2022		100,000		106,166
				495,194


	Principal Amount		Value
Hotels, Restaurants & Leisure – 0.3%
McDonald’s Corp.
2.75%, due 12/09/2020	$	10,000	$	10,391
2.63%, due 01/15/2022		15,000		15,513
3.38%, due 05/26/2025		50,000		52,562
				78,466
Household Products – 0.2%
The Procter & Gamble Co.
3.10%, due 08/15/2023		50,000		53,845
Industrial Conglomerates – 0.3%
General Electric Co.
2.70%, due 10/09/2022		60,000		62,022
Insurance – 2.4%
Aflac, Inc.
2.40%, due 03/16/2020		100,000		102,897
3.63%, due 06/15/2023		10,000		10,592
American International Group, Inc.
3.38%, due 08/15/2020		90,000		93,200
Berkshire Hathaway Finance Corp.
2.90%, due 10/15/2020		50,000		52,922
Chubb INA Holdings, Inc.
3.15%, due 03/15/2025		70,000		72,740
Marsh & McLennan Cos., Inc.
3.50%, due 03/10/2025		30,000		30,569
3.75%, due 03/14/2026		20,000		20,702
MetLife, Inc.
3.60%, due 04/10/2024		80,000		84,207
Prudential Financial, Inc.
4.50%, due 11/15/2020		60,000		65,818
5.20%, due 03/15/2024		10,000		9,924
				543,571
Internet & Catalog Retail – 0.1%
Amazon.com, Inc.
3.30%, due 12/05/2021		30,000		32,322
Internet Software & Services – 2.3%
Alibaba Group Holding Ltd.
2.50%, due 11/28/2019		200,000		201,376
Baidu, Inc.
2.75%, due 06/09/2019		200,000		203,599
eBay, Inc.
3.45%, due 08/01/2024		120,000		121,538
				526,513

See Accompanying Notes to the Financial Statements.


226		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Credit-Scored US Corporate Bond Index Fund (cont.)


	Principal Amount		Value
CORPORATE BONDS – (continued)
IT Services – 1.8%
Fiserv, Inc.
3.50%, due 10/01/2022	$	30,000	$	31,467
International Business Machines Corp.
1.88%, due 05/15/2019		100,000		101,635
8.38%, due 11/01/2019		10,000		12,301
3.63%, due 02/12/2024		100,000		108,467
Visa, Inc.
2.80%, due 12/14/2022		150,000		156,602
				410,472
Machinery – 0.2%
Ingersoll-Rand Luxembourg Finance S.A.
3.55%, due 11/01/2024		50,000		51,910
Media – 4.9%
21st Century Fox America, Inc.
4.50%, due 02/15/2021		100,000		111,056
CBS Corp.
2.30%, due 08/15/2019		100,000		101,440
Comcast Corp.
5.70%, due 05/15/2018		100,000		109,308
3.60%, due 03/01/2024		100,000		108,577
3.15%, due 03/01/2026		50,000		52,426
Discovery Communications LLC
3.30%, due 05/15/2022		20,000		19,902
Omnicom Group, Inc.
4.45%, due 08/15/2020		170,000		186,556
Time Warner Cable, Inc.
4.13%, due 02/15/2021		150,000		160,449
Time Warner, Inc.
4.70%, due 01/15/2021		80,000		88,863
3.55%, due 06/01/2024		60,000		62,606
Viacom, Inc.
2.50%, due 09/01/2018		75,000		75,825
The Walt Disney Co.
3.00%, due 02/13/2026		60,000		63,539
				1,140,547
Metals & Mining – 1.0%
BHP Billiton Finance USA Ltd.
3.25%, due 11/21/2021		90,000		94,343
3.85%, due 09/30/2023		35,000		37,349


	Principal Amount		Value
Metals & Mining – (continued)
Rio Tinto Finance USA Ltd.
9.00%, due 05/01/2019	$	30,000	$	36,009
Rio Tinto Finance USA PLC
3.50%, due 03/22/2022		50,000		52,062
				219,763
Multiline Retail – 0.1%
Target Corp.
3.50%, due 07/01/2024		30,000		32,914
Multi-Utilities – 0.4%
Dominion Resources, Inc.
4.45%, due 03/15/2021		60,000		65,164
Sempra Energy
3.55%, due 06/15/2024		30,000		31,076
				96,240
Oil, Gas & Consumable Fuels – 6.2%
BP Capital Markets PLC
2.24%, due 05/10/2019		100,000		101,703
4.50%, due 10/01/2020		100,000		110,432
3.81%, due 02/10/2024		110,000		117,205
Chevron Corp.
3.19%, due 06/24/2023		150,000		157,370
ConocoPhillips Co.
2.40%, due 12/15/2022		30,000		29,161
Enbridge Energy Partners LP
5.88%, due 10/15/2025		50,000		52,770
Enterprise Products Operating LLC
3.35%, due 03/15/2023		80,000		81,344
3.75%, due 02/15/2025		100,000		103,374
EOG Resources, Inc.
2.45%, due 04/01/2020		75,000		75,471
Exxon Mobil Corp.
2.73%, due 03/01/2023		60,000		61,460
2.71%, due 03/06/2025		80,000		81,707
Marathon Oil Corp.
3.85%, due 06/01/2025		35,000		31,330
Marathon Petroleum Corp.
3.63%, due 09/15/2024		50,000		47,972
Occidental Petroleum Corp.
2.70%, due 02/15/2023		70,000		70,519
ONEOK Partners LP
3.38%, due 10/01/2022		40,000		37,718

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			227

FlexShares^® Credit-Scored US Corporate Bond Index Fund (cont.)


	Principal Amount		Value
CORPORATE BONDS – (continued)
Oil, Gas & Consumable Fuels – (continued)
Plains All American Pipeline LP/PAA Finance Corp.
2.60%, due 12/15/2019	$	20,000	$	19,202
Suncor Energy, Inc.
3.60%, due 12/01/2024		30,000		30,508
Total Capital Canada Ltd.
2.75%, due 07/15/2023		130,000		131,540
TransCanada PipeLines Ltd.
3.80%, due 10/01/2020		50,000		52,475
3.75%, due 10/16/2023		40,000		41,083
				1,434,344
Pharmaceuticals – 2.9%
AbbVie, Inc.
3.20%, due 11/06/2022		40,000		41,352
3.60%, due 05/14/2025		140,000		146,971
Actavis Funding SCS
2.35%, due 03/12/2018		100,000		101,141
GlaxoSmithKline Capital, Inc.
5.65%, due 05/15/2018		60,000		65,503
Merck & Co., Inc.
2.75%, due 02/10/2025		65,000		66,989
Novartis Capital Corp.
3.40%, due 05/06/2024		100,000		107,790
Pfizer, Inc.
6.20%, due 03/15/2019		30,000		34,031
Sanofi
4.00%, due 03/29/2021		30,000		32,919
Teva Pharmaceutical Finance Co. B.V.
3.65%, due 11/10/2021		23,000		24,167
Wyeth LLC
6.45%, due 02/01/2024		40,000		50,780
				671,643
Real Estate Investment Trusts (REITs) – 2.8%
American Tower Corp.
5.90%, due 11/01/2021		10,000		11,466
Boston Properties LP
3.70%, due 11/15/2018		100,000		104,849
5.63%, due 11/15/2020		70,000		79,715
ERP Operating LP
4.63%, due 12/15/2021		60,000		67,495


	Principal Amount		Value
Real Estate Investment Trusts (REITs) – (continued)
HCP, Inc.
2.63%, due 02/01/2020	$	45,000	$	44,658
Realty Income Corp.
4.65%, due 08/01/2023		10,000		10,791
Simon Property Group LP
4.38%, due 03/01/2021		100,000		110,596
3.75%, due 02/01/2024		45,000		48,782
Ventas Realty LP/Ventas Capital Corp.
4.00%, due 04/30/2019		130,000		136,554
Welltower, Inc.
3.75%, due 03/15/2023		30,000		30,379
				645,285
Road & Rail – 0.9%
Burlington Northern Santa Fe LLC
3.05%, due 03/15/2022		100,000		105,831
CSX Corp.
3.70%, due 10/30/2020		70,000		74,752
Norfolk Southern Corp.
3.00%, due 04/01/2022		30,000		30,936
				211,519
Semiconductors & Semiconductor Equipment – 1.0%
Intel Corp.
3.70%, due 07/29/2025		100,000		110,097
QUALCOMM, Inc.
2.25%, due 05/20/2020		120,000		123,121
				233,218
Software – 1.4%
Microsoft Corp.
1.63%, due 12/06/2018		40,000		40,797
2.70%, due 02/12/2025		100,000		102,898
Oracle Corp.
2.50%, due 10/15/2022		100,000		102,141
2.95%, due 05/15/2025		83,000		85,554
				331,390
Specialty Retail – 0.8%
AutoZone, Inc.
4.00%, due 11/15/2020		20,000		21,673
The Home Depot, Inc.
2.63%, due 06/01/2022		100,000		103,581

See Accompanying Notes to the Financial Statements.


228		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Credit-Scored US Corporate Bond Index Fund (cont.)


	Principal Amount		Value
CORPORATE BONDS – (continued)
Specialty Retail – (continued)
Lowe’s Cos., Inc.
2.50%, due 04/15/2026	$	60,000	$	59,491
				184,745
Technology Hardware, Storage & Peripherals – 2.8%
Apple, Inc.
2.25%, due 02/23/2021		25,000		25,573
2.85%, due 05/06/2021		110,000		115,678
2.40%, due 05/03/2023		230,000		231,239
3.45%, due 05/06/2024		120,000		128,289
EMC Corp.
2.65%, due 06/01/2020		100,000		93,708
HP, Inc.
4.38%, due 09/15/2021		25,000		26,360
4.05%, due 09/15/2022		25,000		25,978
				646,825
Thrifts & Mortgage Finance – 0.4%
Abbey National Treasury Services PLC
3.05%, due 08/23/2018		100,000		103,145
Tobacco – 1.3%
Altria Group, Inc.
2.85%, due 08/09/2022		110,000		114,286
Philip Morris International, Inc.
3.60%, due 11/15/2023		60,000		65,224
Reynolds American, Inc.
3.25%, due 06/12/2020		54,000		56,679
4.45%, due 06/12/2025		50,000		55,476
				291,665
Wireless Telecommunication Services – 0.5%
America Movil SAB de CV
5.00%, due 10/16/2019		100,000		110,414
Total Corporate Bonds (Cost $22,335,651)				22,790,815

Total Investment Securities (Cost $22,335,651) – 98.6%				22,790,815
Other assets less liabilities – 1.4%				324,011
NET ASSETS – 100.0%			$	23,114,826

Percentages shown are based on Net Assets.

Abbreviation:

REIT – Real Estate Investment Trust

As of April 30, 2016, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:



Aggregate gross unrealized appreciation	$	459,762
Aggregate gross unrealized depreciation		(4,695	)
Net unrealized appreciation	$	455,067
Federal income tax cost of investments	$	22,335,748

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			229

Schedule of Investments

FlexShares^® Credit-Scored US Long Corporate Bond Index Fund

April 30, 2016 (Unaudited)


	Principal Amount		Value
CORPORATE BONDS – 98.3%
Aerospace & Defense – 2.2%
Honeywell International, Inc.
5.70%, due 03/15/2037	$	20,000	$	25,640
Lockheed Martin Corp.
3.60%, due 03/01/2035		75,000		75,793
Northrop Grumman Corp.
3.85%, due 04/15/2045		30,000		30,516
Raytheon Co.
4.88%, due 10/15/2040		15,000		17,847
United Technologies Corp.
5.70%, due 04/15/2040		65,000		82,615
				232,411
Air Freight & Logistics – 1.0%
FedEx Corp.
3.90%, due 02/01/2035		75,000		73,609
United Parcel Service, Inc.
4.88%, due 11/15/2040		30,000		36,007
				109,616
Auto Components – 0.3%
BorgWarner, Inc.
4.38%, due 03/15/2045		30,000		29,233
Automobiles – 1.1%
General Motors Co.
5.00%, due 04/01/2035		55,000		55,150
5.20%, due 04/01/2045		40,000		40,087
6.75%, due 04/01/2046		15,000		18,166
				113,403
Banks – 10.2%
Bank of America Corp.
4.25%, due 10/22/2026		50,000		51,211
5.00%, due 01/21/2044		70,000		78,330
Citigroup, Inc.
6.00%, due 10/31/2033		70,000		79,223
8.13%, due 07/15/2039		17,000		26,147
5.30%, due 05/06/2044		30,000		32,208
4.65%, due 07/30/2045		50,000		53,690
Fifth Third Bancorp
8.25%, due 03/01/2038		20,000		28,903


	Principal Amount		Value
Banks – (continued)
HSBC Holdings PLC
6.10%, due 01/14/2042	$	75,000	$	95,455
JPMorgan Chase & Co.
4.13%, due 12/15/2026		60,000		62,751
6.40%, due 05/15/2038		90,000		121,880
4.95%, due 06/01/2045		50,000		54,292
Wells Fargo & Co.
4.10%, due 06/03/2026		50,000		52,663
4.30%, due 07/22/2027		25,000		26,700
5.38%, due 11/02/2043		130,000		148,438
5.61%, due 01/15/2044		100,000		117,408
4.65%, due 11/04/2044		50,000		51,952
				1,081,251
Beverages – 3.6%
Anheuser-Busch InBev Finance, Inc.
4.70%, due 02/01/2036		65,000		71,224
4.90%, due 02/01/2046		140,000		159,158
Anheuser-Busch InBev Worldwide, Inc.
3.75%, due 07/15/2042		85,000		82,894
PepsiCo, Inc.
4.60%, due 07/17/2045		30,000		34,752
4.45%, due 04/14/2046		35,000		39,164
				387,192
Biotechnology – 2.6%
Amgen, Inc.
5.15%, due 11/15/2041		90,000		102,861
Biogen, Inc.
5.20%, due 09/15/2045		30,000		34,320
Gilead Sciences, Inc.
4.60%, due 09/01/2035		30,000		32,965
4.80%, due 04/01/2044		40,000		45,346
4.50%, due 02/01/2045		60,000		64,120
				279,612
Capital Markets – 5.4%
Credit Suisse USA, Inc.
7.13%, due 07/15/2032		20,000		25,853

See Accompanying Notes to the Financial Statements.


230		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Credit-Scored US Long Corporate Bond Index Fund (cont.)


	Principal Amount		Value
CORPORATE BONDS – (continued)
Capital Markets – (continued)
The Goldman Sachs Group, Inc.
6.13%, due 02/15/2033	$	190,000	$	233,298
6.75%, due 10/01/2037		90,000		109,439
5.15%, due 05/22/2045		50,000		51,608
Morgan Stanley
6.38%, due 07/24/2042		60,000		79,568
4.30%, due 01/27/2045		75,000		76,482
				576,248
Chemicals – 2.5%
The Dow Chemical Co.
7.38%, due 11/01/2029		20,000		26,194
4.25%, due 10/01/2034		30,000		30,077
4.38%, due 11/15/2042		25,000		24,739
4.63%, due 10/01/2044		50,000		51,130
LYB International Finance B.V.
4.88%, due 03/15/2044		60,000		62,899
Monsanto Co.
4.20%, due 07/15/2034		30,000		28,957
Potash Corp of Saskatchewan, Inc.
5.88%, due 12/01/2036		30,000		36,305
				260,301
Commercial Services & Supplies – 0.4%
Republic Services, Inc.
6.20%, due 03/01/2040		20,000		25,070
Waste Management, Inc.
4.10%, due 03/01/2045		15,000		15,401
				40,471
Communications Equipment – 0.7%
Cisco Systems, Inc.
5.90%, due 02/15/2039		35,000		46,390
5.50%, due 01/15/2040		20,000		25,564
				71,954
Diversified Financial Services – 1.4%
Berkshire Hathaway, Inc.
4.50%, due 02/11/2043		40,000		44,621
Shell International Finance B.V.
4.38%, due 05/11/2045		100,000		106,706
				151,327


	Principal Amount		Value
Diversified Telecommunication Services – 11.5%
AT&T, Inc.
4.50%, due 05/15/2035	$	105,000	$	105,934
6.30%, due 01/15/2038		50,000		59,828
5.35%, due 09/01/2040		55,000		59,443
5.55%, due 08/15/2041		45,000		50,056
4.35%, due 06/15/2045		95,000		89,403
4.75%, due 05/15/2046		130,000		131,511
British Telecommunications PLC
9.63%, due 12/15/2030		60,000		96,682
Deutsche Telekom International Finance B.V.
8.75%, due 06/15/2030		50,000		75,922
Orange S.A.
9.00%, due 03/01/2031		25,000		39,159
Verizon Communications, Inc.
5.05%, due 03/15/2034		75,000		82,560
4.40%, due 11/01/2034		150,000		153,346
4.86%, due 08/21/2046		175,000		188,315
4.67%, due 03/15/2055		95,000		92,276
				1,224,435
Electric Utilities – 3.1%
Exelon Corp.
5.10%, due 06/15/2045		30,000		34,126
Florida Power & Light Co.
4.13%, due 02/01/2042		20,000		21,953
Georgia Power Co.
4.30%, due 03/15/2042		30,000		32,397
Pacific Gas & Electric Co.
6.05%, due 03/01/2034		50,000		66,592
Progress Energy, Inc.
7.75%, due 03/01/2031		80,000		111,162
South Carolina Electric & Gas Co.
4.35%, due 02/01/2042		30,000		31,444
Southern California Edison Co.
4.65%, due 10/01/2043		30,000		35,210
				332,884
Electrical Equipment – 0.2%
Eaton Corp.
4.00%, due 11/02/2032		20,000		20,541

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			231

FlexShares^® Credit-Scored US Long Corporate Bond Index Fund (cont.)


	Principal Amount		Value
CORPORATE BONDS – (continued)
Energy Equipment & Services – 1.4%
Baker Hughes, Inc.
5.13%, due 09/15/2040	$	35,000	$	36,132
Diamond Offshore Drilling, Inc.
4.88%, due 11/01/2043		20,000		14,567
Halliburton Co.
6.70%, due 09/15/2038		20,000		23,957
4.50%, due 11/15/2041		20,000		18,939
5.00%, due 11/15/2045		40,000		41,071
National Oilwell Varco, Inc.
3.95%, due 12/01/2042		20,000		14,954
				149,620
Food & Staples Retailing – 3.3%
CVS Health Corp.
4.88%, due 07/20/2035		60,000		67,470
5.13%, due 07/20/2045		50,000		58,667
Sysco Corp.
4.85%, due 10/01/2045		20,000		21,918
Walgreen Co.
4.40%, due 09/15/2042		30,000		29,089
Wal-Mart Stores, Inc.
5.25%, due 09/01/2035		85,000		106,389
6.50%, due 08/15/2037		30,000		42,071
4.30%, due 04/22/2044		25,000		28,162
				353,766
Food Products – 0.3%
Mondelez International, Inc.
6.50%, due 02/09/2040		10,000		12,709
Tyson Foods, Inc.
5.15%, due 08/15/2044		20,000		22,978
				35,687
Health Care Equipment & Supplies – 1.1%
Abbott Laboratories
5.30%, due 05/27/2040		35,000		40,078
Medtronic, Inc.
4.38%, due 03/15/2035		30,000		33,475
St Jude Medical, Inc.
4.75%, due 04/15/2043		10,000		10,637
Stryker Corp.
4.63%, due 03/15/2046		30,000		33,219
				117,409


	Principal Amount		Value
Health Care Providers & Services – 1.0%
Aetna, Inc.
6.75%, due 12/15/2037	$	30,000	$	39,282
Cigna Corp.
5.38%, due 02/15/2042		30,000		33,401
McKesson Corp.
4.88%, due 03/15/2044		30,000		33,661
				106,344
Hotels, Restaurants & Leisure – 1.3%
McDonald’s Corp.
4.70%, due 12/09/2035		50,000		54,631
6.30%, due 03/01/2038		40,000		51,815
4.60%, due 05/26/2045		30,000		32,741
				139,187
Household Products – 0.3%
The Procter & Gamble Co.
5.80%, due 08/15/2034		20,000		26,830
Independent Power and Renewable Electricity Producers – 0.6%
Exelon Generation Co. LLC
6.25%, due 10/01/2039		30,000		32,764
Southern Power Co.
5.15%, due 09/15/2041		30,000		31,434
				64,198
Industrial Conglomerates – 1.4%
General Electric Co.
6.75%, due 03/15/2032		15,000		20,766
4.13%, due 10/09/2042		30,000		32,091
4.50%, due 03/11/2044		35,000		39,428
Koninklijke Philips N.V.
5.00%, due 03/15/2042		35,000		36,941
Tyco International Finance S.A.
5.13%, due 09/14/2045		20,000		21,430
				150,656
Insurance – 3.4%
The Allstate Corp.
5.55%, due 05/09/2035		20,000		24,459
American International Group, Inc.
3.88%, due 01/15/2035		60,000		55,815
4.50%, due 07/16/2044		30,000		29,098

See Accompanying Notes to the Financial Statements.


232		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Credit-Scored US Long Corporate Bond Index Fund (cont.)


	Principal Amount		Value
CORPORATE BONDS – (continued)
Insurance – (continued)
Aon PLC
4.75%, due 05/15/2045	$	40,000	$	41,420
The Chubb Corp.
6.00%, due 05/11/2037		20,000		26,104
Chubb INA Holdings, Inc.
3.35%, due 05/03/2026		20,000		21,098
MetLife, Inc.
6.38%, due 06/15/2034		90,000		113,171
Prudential Financial, Inc.
5.70%, due 12/14/2036		30,000		34,678
The Travelers Cos., Inc.
4.60%, due 08/01/2043		15,000		17,049
				362,892
Internet & Catalog Retail – 0.2%
Amazon.com, Inc.
4.95%, due 12/05/2044		15,000		17,595
Internet Software & Services – 0.2%
eBay, Inc.
4.00%, due 07/15/2042		30,000		24,381
IT Services – 0.8%
International Business Machines Corp.
4.00%, due 06/20/2042		30,000		31,278
Visa, Inc.
4.30%, due 12/14/2045		45,000		49,582
				80,860
Machinery – 0.4%
Deere & Co.
3.90%, due 06/09/2042		25,000		25,812
Illinois Tool Works, Inc.
3.90%, due 09/01/2042		20,000		20,584
				46,396
Media – 7.7%
21st Century Fox America, Inc.
6.20%, due 12/15/2034		40,000		49,363
6.40%, due 12/15/2035		40,000		50,574
6.15%, due 02/15/2041		60,000		74,400
4.75%, due 09/15/2044		30,000		32,173
CBS Corp.
4.60%, due 01/15/2045		20,000		19,690


	Principal Amount		Value
Media – (continued)
Comcast Corp.
5.65%, due 06/15/2035	$	40,000	$	50,249
6.45%, due 03/15/2037		40,000		53,958
4.60%, due 08/15/2045		25,000		28,421
Discovery Communications LLC
4.88%, due 04/01/2043		30,000		27,004
NBCUniversal Media LLC
6.40%, due 04/30/2040		75,000		103,407
Time Warner Cable, Inc.
4.50%, due 09/15/2042		115,000		108,136
Time Warner, Inc.
7.63%, due 04/15/2031		50,000		65,937
6.10%, due 07/15/2040		50,000		60,700
Viacom, Inc.
4.85%, due 12/15/2034		70,000		63,121
The Walt Disney Co.
4.13%, due 06/01/2044		30,000		32,677
				819,810
Metals & Mining – 1.4%
BHP Billiton Finance USA Ltd.
4.13%, due 02/24/2042		50,000		49,884
Nucor Corp.
5.20%, due 08/01/2043		20,000		21,704
Rio Tinto Finance USA PLC
4.75%, due 03/22/2042		50,000		52,024
Southern Copper Corp.
5.25%, due 11/08/2042		30,000		25,983
				149,595
Multiline Retail – 0.5%
Target Corp.
4.00%, due 07/01/2042		50,000		53,050
Multi-Utilities – 3.2%
Berkshire Hathaway Energy Co.
6.50%, due 09/15/2037		50,000		67,750
4.50%, due 02/01/2045		90,000		100,275
Consolidated Edison Co. of New York, Inc.
4.63%, due 12/01/2054		20,000		22,134
Dominion Resources, Inc.
5.95%, due 06/15/2035		80,000		94,451
NiSource Finance Corp.
5.65%, due 02/01/2045		50,000		60,223
				344,833

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			233

FlexShares^® Credit-Scored US Long Corporate Bond Index Fund (cont.)


	Principal Amount		Value
CORPORATE BONDS – (continued)
Oil, Gas & Consumable Fuels – 6.6%
Enterprise Products Operating LLC
6.88%, due 03/01/2033	$	70,000	$	82,072
6.45%, due 09/01/2040		60,000		68,231
EOG Resources, Inc.
3.90%, due 04/01/2035		25,000		23,918
Exxon Mobil Corp.
4.11%, due 03/01/2046		25,000		26,704
Marathon Petroleum Corp.
4.75%, due 09/15/2044		20,000		16,776
Occidental Petroleum Corp.
4.63%, due 06/15/2045		20,000		22,131
ONEOK Partners LP
6.13%, due 02/01/2041		20,000		19,010
Phillips 66
4.65%, due 11/15/2034		20,000		21,151
5.88%, due 05/01/2042		45,000		52,670
4.88%, due 11/15/2044		30,000		32,557
Plains All American Pipeline LP/PAA Finance Corp.
4.70%, due 06/15/2044		50,000		40,422
Suncor Energy, Inc.
6.50%, due 06/15/2038		85,000		100,395
TransCanada PipeLines Ltd.
4.63%, due 03/01/2034		40,000		40,900
5.00%, due 10/16/2043		95,000		96,537
Valero Energy Corp.
6.63%, due 06/15/2037		50,000		56,357
				699,831
Pharmaceuticals – 3.4%
AbbVie, Inc.
4.50%, due 05/14/2035		85,000		88,698
4.40%, due 11/06/2042		50,000		51,718
AstraZeneca PLC
6.45%, due 09/15/2037		20,000		26,829
GlaxoSmithKline Capital, Inc.
5.38%, due 04/15/2034		30,000		35,392
Johnson & Johnson
4.38%, due 12/05/2033		30,000		34,680
Merck & Co., Inc.
3.70%, due 02/10/2045		40,000		41,011
Novartis Capital Corp.
3.70%, due 09/21/2042		30,000		31,074


	Principal Amount		Value
Pharmaceuticals – (continued)
Pfizer, Inc.
4.40%, due 05/15/2044	$	30,000	$	34,212
Wyeth LLC
6.50%, due 02/01/2034		10,000		13,416
				357,030
Real Estate Investment Trusts (REITs) – 0.3%
Simon Property Group LP
6.75%, due 02/01/2040		20,000		27,860
Road & Rail – 2.4%
Burlington Northern Santa Fe LLC
6.15%, due 05/01/2037		40,000		51,861
4.55%, due 09/01/2044		40,000		44,575
4.70%, due 09/01/2045		15,000		17,151
CSX Corp.
6.15%, due 05/01/2037		60,000		75,621
Norfolk Southern Corp.
4.84%, due 10/01/2041		40,000		44,753
Union Pacific Corp.
4.75%, due 09/15/2041		20,000		22,890
				256,851
Semiconductors & Semiconductor Equipment – 1.2%
Applied Materials, Inc.
5.85%, due 06/15/2041		15,000		18,121
Intel Corp.
4.80%, due 10/01/2041		20,000		22,702
4.90%, due 07/29/2045		30,000		34,433
QUALCOMM, Inc.
4.65%, due 05/20/2035		20,000		21,139
4.80%, due 05/20/2045		35,000		35,518
				131,913
Software – 3.8%
Microsoft Corp.
3.50%, due 02/12/2035		130,000		130,462
3.75%, due 02/12/2045		40,000		39,928
4.45%, due 11/03/2045		25,000		27,814
Oracle Corp.
4.30%, due 07/08/2034		150,000		160,588
6.50%, due 04/15/2038		30,000		40,761
				399,553

See Accompanying Notes to the Financial Statements.


234		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Credit-Scored US Long Corporate Bond Index Fund (cont.)


	Principal Amount		Value

CORPORATE BONDS – (continued)
Specialty Retail – 1.6%
The Home Depot, Inc.
5.88%, due 12/16/2036	$	35,000	$	46,096
4.40%, due 03/15/2045		40,000		44,958
4.25%, due 04/01/2046		25,000		27,647
Lowe’s Cos., Inc.
6.65%, due 09/15/2037		20,000		27,635
4.38%, due 09/15/2045		25,000		28,117
				174,453
Technology Hardware, Storage & Peripherals – 1.7%
Apple, Inc.
4.50%, due 02/23/2036		35,000		38,227
3.85%, due 05/04/2043		55,000		53,986
4.38%, due 05/13/2045		60,000		63,725
HP, Inc.
6.00%, due 09/15/2041		30,000		28,319
				184,257
Tobacco – 2.1%
Altria Group, Inc.
10.20%, due 02/06/2039		30,000		54,986
5.38%, due 01/31/2044		40,000		49,839
Philip Morris International, Inc.
4.38%, due 11/15/2041		50,000		54,284
Reynolds American, Inc.
5.85%, due 08/15/2045		50,000		61,609
				220,718
Trading Companies & Distributors – 0.2%
W.W. Grainger, Inc.
4.60%, due 06/15/2045		20,000		22,942
Wireless Telecommunication Services – 0.3%
New Cingular Wireless Services, Inc.
8.75%, due 03/01/2031		20,000		29,551
Total Corporate Bonds (Cost $9,970,816)				10,458,947

Total Investment Securities (Cost $9,970,816) – 98.3%				10,458,947
Other assets less liabilities – 1.7%				182,844
NET ASSETS – 100.0%			$	10,641,791

Percentages shown are based on Net Assets.

Abbreviation:

REIT – Real Estate Investment Trust

As of April 30, 2016, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:



Aggregate gross unrealized appreciation	$	501,951
Aggregate gross unrealized depreciation		(19,638	)
Net unrealized appreciation	$	482,313
Federal income tax cost of investments	$	9,976,634

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			235

Schedule of Investments

FlexShares^® Ready Access Variable Income Fund

April 30, 2016 (Unaudited)


	Principal Amount		Value
ASSET-BACKED SECURITIES – 8.4%
AmeriCredit Automobile Receivables Trust, Series 2015-3, Class A2A
1.07%, due 01/08/2019	$	987,460	$	987,479
BMW Vehicle Lease Trust, Series 2015-2, Class A2A
1.07%, due 01/22/2018		949,000		949,664
CARDS II Trust, Series 2015-2A, Class A
0.95%, due 07/15/2020(a) (b)		1,000,000		997,406
CNH Equipment Trust, Series 2015-C, Class A2A
1.10%, due 12/17/2018		949,000		949,077
Ford Credit Auto Lease Trust, Series 2015-B, Class A2A
1.04%, due 05/15/2018		949,000		949,529
GM Financial Automobile Leasing Trust, Series 2015-3, Class A2A
1.17%, due 06/20/2018		949,000		948,219
Santander Drive Auto Receivables Trust, Series 2015-4, Class A2A
1.20%, due 12/17/2018		656,928		657,282
Santander Drive Auto Receivables Trust, Series 2015-5, Class A2A
1.12%, due 12/17/2018		817,786		817,955
World Omni Auto Receivables Trust, Series 2015-B, Class A2B
0.83%, due 07/15/2019(a)		949,000		949,018
Total Asset-Backed Securities (Cost $8,206,924)				8,205,629

CORPORATE BONDS – 75.2%
Banks – 4.5%
Australia & New Zealand Banking Group Ltd.
1.25%, due 01/10/2017		450,000		451,245


	Principal Amount		Value

Banks – (continued)
Banque Federative du Credit Mutuel S.A.
1.48%, due 01/20/2017(a) (b)	$	1,000,000	$	1,002,722

Barclays Bank PLC
1.20%, due 02/17/2017(a)		1,000,000		1,000,987
Sumitomo Mitsui Banking Corp.
1.06%, due 01/10/2017(a)		2,000,000		1,998,978
				4,453,932
Communications Equipment – 1.7%
Cisco Systems, Inc.
1.40%, due 02/28/2018		949,000		956,267
1.14%, due 03/01/2019(a)		685,000		686,829
				1,643,096
Consumer Finance – 8.3%
American Express Credit Corp.
1.11%, due 08/15/2019(a)		938,000		920,143
American Honda Finance Corp.
1.13%, due 10/07/2016(a)		949,000		950,897
0.80%, due 07/14/2017(a)		860,000		859,792
Capital One N.A./Virginia
1.65%, due 02/05/2018		700,000		697,424
Ford Motor Credit Co. LLC
1.46%, due 03/12/2019(a)		1,000,000		986,952
John Deere Capital Corp.
1.05%, due 12/15/2016		736,000		737,525
1.95%, due 12/13/2018		13,000		13,243
Nissan Motor Acceptance Corp.
1.18%, due 03/03/2017(a) (b)		432,000		432,152
Synchrony Financial
1.88%, due 08/15/2017		50,000		50,018
1.88%, due 08/15/2017		772,000		772,282
Toyota Motor Credit Corp.
0.91%, due 05/17/2016(a)		66,000		66,017
0.82%, due 05/16/2017(a)		799,000		798,791
1.45%, due 01/12/2018		860,000		864,569
				8,149,805

See Accompanying Notes to the Financial Statements.


236		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Ready Access Variable Income Fund (cont.)


	Principal Amount		Value
CORPORATE BONDS – (continued)
Data Processing & Outsourced Services – 0.2%
MasterCard, Inc.
2.00%, due 04/01/2019	$	164,000	$	167,733
Diversified Banks – 16.2%
Bank of America Corp.
1.24%, due 08/25/2017(a)		860,000		857,661
BNP Paribas S.A.
1.12%, due 03/17/2017(a)		640,000		639,866
Commonwealth Bank of Australia
1.03%, due 03/12/2018(a) (b)		860,000		855,899
1.43%, due 11/02/2018(a) (b)		949,000		947,053
KeyBank N.A.
1.12%, due 11/25/2016(a)		1,000,000		1,001,074
Lloyds Bank PLC
1.16%, due 03/16/2018(a)		1,000,000		993,573
National Australia Bank Ltd.
1.41%, due 01/14/2019(a) (b)		1,000,000		998,073
National Bank of Canada
1.47%, due 12/14/2018(a)		1,000,000		1,001,733
2.10%, due 12/14/2018		1,000,000		1,011,432
Royal Bank of Canada
1.16%, due 03/06/2020(a)		860,000		846,927
Svenska Handelsbanken AB
1.09%, due 09/23/2016(a)		1,000,000		1,001,364
The Toronto-Dominion Bank
1.10%, due 09/09/2016(a)		627,000		627,966
U.S. Bancorp/Minnesota
1.04%, due 04/25/2019(a)		726,000		719,898
U.S. Bank N.A./Ohio
1.38%, due 09/11/2017		1,000,000		1,003,778
Wells Fargo & Co.
2.15%, due 01/30/2020		243,000		245,914
Wells Fargo Bank N.A.
1.17%, due 09/07/2017(a)		1,000,000		1,001,524
1.65%, due 01/22/2018		500,000		504,227
Westpac Banking Corp.
1.06%, due 11/25/2016(a)		648,000		649,004
1.36%, due 11/23/2018(a)		949,000		948,258
				15,855,224


	Principal Amount		Value
Diversified Capital Markets – 0.3%
Credit Suisse AG
1.75%, due 01/29/2018	$	300,000	$	301,133
Diversified Metals & Mining – 0.7%
Glencore Funding LLC
1.80%, due 05/27/2016 (a) (b)		640,000		639,200
Drug Retail – 1.0%
Walgreens Boots Alliance, Inc.
1.07%, due 05/18/2016(a)		931,000		931,156
1.75%, due 11/17/2017		69,000		69,366
				1,000,522
Electric Utilities – 2.0%
Duke Energy Indiana LLC
0.98%, due 07/11/2016(a)		799,000		799,251
Electricite de France S.A.
1.09%, due 01/20/2017(a) (b)		342,000		341,506
The Southern Co.
1.30%, due 08/15/2017		860,000		859,749
				2,000,506
Fertilizers & Agricultural Chemicals – 0.7%
Monsanto Co.
1.15%, due 06/30/2017		711,000		710,420
Food Retail – 0.8%
The Kroger Co.
1.16%, due 10/17/2016(a)		806,000		806,917
Home Improvement Retail – 0.3%
The Home Depot, Inc.
2.00%, due 06/15/2019		261,000		267,178
Household Appliances – 0.9%
Whirlpool Corp.
1.65%, due 11/01/2017		860,000		862,643
Household Products – 1.9%
Kimberly-Clark Corp.
1.40%, due 02/15/2019		769,000		776,006
1.90%, due 05/22/2019		288,000		293,784

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			237

FlexShares^® Ready Access Variable Income Fund (cont.)


	Principal Amount		Value
CORPORATE BONDS – (continued)
Household Products – (continued)
The Procter & Gamble Co.
0.91%, due 11/01/2019(a)	$	846,000	$	843,700
				1,913,490
Hypermarkets & Super Centers – 0.2%
Wal-Mart Stores, Inc.
1.00%, due 04/21/2017		180,000		180,551
Industrial Conglomerates – 1.0%
General Electric Co.
2.90%, due 01/09/2017		157,000		159,248
1.14%, due 01/14/2019(a)		799,000		798,685
				957,933
Integrated Oil & Gas – 4.5%
Chevron Corp.
1.96%, due 03/03/2020		717,000		726,431
Exxon Mobil Corp.
0.67%, due 03/15/2017(a)		860,000		859,826
1.23%, due 02/28/2018(a)		949,000		957,155
Total Capital International S.A.
1.50%, due 02/17/2017		1,898,000		1,906,885
				4,450,297
Integrated Telecommunication Services – 1.5%
AT&T, Inc.
2.95%, due 05/15/2016		475,000		475,360
Verizon Communications, Inc.
2.16%, due 09/15/2016(a)		944,000		948,483
				1,423,843
Investment Banking & Brokerage – 0.3%
Morgan Stanley
2.50%, due 01/24/2019		324,000		329,649
IT Consulting & Other Services – 1.9%
International Business Machines Corp.
1.07%, due 08/18/2017(a)		1,875,000		1,880,963
Managed Health Care – 0.8%
UnitedHealth Group, Inc.
1.08%, due 01/17/2017(a)		806,000		807,299


	Principal Amount		Value
Movies & Entertainment – 0.8%
The Walt Disney Co.
0.95%, due 05/30/2019(a)	$	799,000	$	796,662
Multi-Utilities – 1.0%
Dominion Resources, Inc.
1.95%, due 08/15/2016		949,000		951,832
Oil & Gas Exploration & Production – 0.2%
Canadian Natural Resources Ltd.
1.75%, due 01/15/2018		176,000		173,105
Oil & Gas Refining & Marketing – 1.7%
BP Capital Markets PLC
2.25%, due 11/01/2016		949,000		955,513
1.26%, due 09/26/2018(a)		710,000		705,720
				1,661,233
Oil & Gas Storage & Transportation – 0.5%
TransCanada PipeLines Ltd.
1.31%, due 06/30/2016(a)		500,000		500,232
Oil, Gas & Consumable Fuels – 1.0%
Sinopec Group Overseas Development 2014 Ltd.
1.41%, due 04/10/2017(a) (b)		1,000,000		1,000,104
Other Diversified Financial Services – 2.5%
Citigroup, Inc.
1.18%, due 03/10/2017(a)		562,000		561,504
Siemens Financieringsmaatschappij N.V.
0.91%, due 05/25/2018(a) (b)		1,000,000		996,517
1.45%, due 05/25/2018(b)		860,000		865,151
				2,423,172
Pharmaceuticals – 4.5%
AstraZeneca PLC
1.15%, due 11/16/2018(a)		949,000		952,392
1.75%, due 11/16/2018		949,000		961,705
Eli Lilly & Co.
1.25%, due 03/01/2018		913,000		919,478

See Accompanying Notes to the Financial Statements.


238		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Ready Access Variable Income Fund (cont.)


	Principal Amount		Value
CORPORATE BONDS – (continued)
Pharmaceuticals – (continued)
Johnson & Johnson
1.13%, due 11/21/2017	$	35,000	$	35,177
1.13%, due 11/21/2017		640,000		643,250
0.91%, due 03/01/2019(a)		949,000		952,758
				4,464,760
Property & Casualty Insurance – 1.9%
Berkshire Hathaway Finance Corp.
0.93%, due 01/12/2018(a)		860,000		859,934
1.32%, due 03/15/2019(a)		949,000		957,462
				1,817,396
Railroads – 0.9%
Canadian National Railway Co.
0.79%, due 11/14/2017(a)		860,000		859,435
Regional Banks – 1.0%
Branch Banking & Trust Co.
1.07%, due 12/01/2016(a)		1,000,000		1,001,320
Restaurants – 0.3%
Starbucks Corp.
0.88%, due 12/05/2016		325,000		325,537
Semiconductors – 0.2%
Texas Instruments, Inc.
0.88%, due 03/12/2017		173,000		173,048
Soft Drinks – 1.9%
PepsiCo, Inc.
1.00%, due 10/13/2017		949,000		951,024
1.21%, due 02/22/2019(a)		949,000		956,149
				1,907,173
Special Purpose Banks – 2.8%
The Korea Development Bank
1.26%, due 01/22/2017(a)		1,767,000		1,767,212
Nederlandse Waterschapsbank N.V.
0.85%, due 02/14/2018(a) (b)		1,000,000		1,000,784
				2,767,996


	Principal Amount		Value
Specialized Finance – 1.9%
Shell International Finance B.V.
1.20%, due 11/10/2018(a)	$	1,044,000	$	1,041,254
2.13%, due 05/11/2020		860,000		872,086
				1,913,340
Systems Software – 0.8%
Microsoft Corp.
1.85%, due 02/12/2020		732,000		747,891
Technology Hardware, Storage & Peripherals – 1.5%
Apple, Inc.
1.44%, due 02/22/2019(a)		949,000		960,723
0.93%, due 05/06/2019(a)		478,000		476,453
				1,437,176
Thrifts & Mortgage Finance – 0.1%
Abbey National Treasury Services PLC
1.14%, due 03/13/2017(a)		66,000		65,951
Total Corporate Bonds (Cost $73,659,219)				73,789,697

MUNICIPAL BONDS – 1.0%
Riverside California Pension, Obligation Refunding, Revenue Bonds, Series A
0.75%, due 06/01/2016		1,000,000		999,780
Total Municipal Bonds (Cost $1,000,000)				999,780

COMMERCIAL PAPERS – 5.1%
Catholic Health Initiatives
0.41%, due 05/20/2016(c)		1,000,000		999,770
Electricite de France S.A.
0.75%, due 05/25/2016(b) (c)		1,000,000		999,476
ENI Finance USA, Inc.
0.49%, due 06/07/2016(b) (c)		1,000,000		999,485
Humana, Inc.
0.72%, due 05/09/2016(b) (c)		1,000,000		999,820

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			239

FlexShares^® Ready Access Variable Income Fund (cont.)


	Principal Amount		Value
COMMERCIAL PAPERS – (continued)
Idaho Housing & Finance Association
0.36%, due 05/04/2016(c)	$	1,000,000	$	999,960
Total Commercial Papers (Cost $4,997,628)				4,998,511

REPURCHASE AGREEMENT – 6.1%
SG America Securities LLC, 0.64%, dated 04/29/2016, due 05/02/2016, repurchase price $6,000,320, collateralized by various Corporate Bonds, ranging from 2.40% – 10.63%, maturing 02/06/2017 – 06/05/2115; total market value $6,441,462		6,000,000		6,000,000
Total Repurchase Agreements (Cost $6,000,000)				6,000,000

U.S. TREASURY OBLIGATIONS – 2.2%
U.S. Treasury Bills
0.22%, due 09/08/2016(c)		500,000		499,603
0.34%, due 10/13/2016(c)		1,700,000		1,697,350
Total U.S. Treasury Obligations (Cost $2,196,299)				2,196,953
Total Investment Securities (Cost $96,060,070) – 98.0%				96,190,570
Other assets less liabilities – 2.0%				1,926,811
NET ASSETS – 100.0%			$	98,117,381

^(a)

Variable/Floating Rate Security – Interest rate changes on these instruments are based on changes in a designated rate. The rates shown are those in effect on 04/30/2016.

^(b)

^(c)

Yield to maturity.

Percentages shown are based on Net Assets.

As of April 30, 2016, the gross unrealized appreciation (depreciation) of investments based on the aggregate cost of investments for federal income tax purposes was as follows:



Aggregate gross unrealized appreciation	$	228,312
Aggregate gross unrealized depreciation		(97,812	)
Net unrealized appreciation	$	130,500
Federal income tax cost of investments	$	96,060,070

See Accompanying Notes to the Financial Statements.


240		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Ready Access Variable Income Fund (cont.)

FlexShares^® Ready Access Variable Income Fund invested, as a percentage of net assets, in companies domiciled in the following countries as of April 30, 2016:


Australia	4.9	%
Canada	6.1
France	5.0
Japan	2.0
Netherlands	4.9
South Korea	1.8
Sweden	1.0
Switzerland	0.3
United Kingdom	6.8
United States	65.2
Other¹	2.0
	100.0	%

¹	Includes any non-fixed-income securities and net other assets (liabilities).

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			241

Notes to the Financial Statements April 30, 2016 (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-two operational exchange-traded funds as of April 30, 2016 (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^® Disciplined Duration MBS 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^® 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 are diversified series of the Trust, pursuant to the 1940 Act.

The FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund and FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund commenced operations on November 9, 2015. The FlexShares Real Assets Allocation Index Fund commenced operations on November 23, 2015.

Each Fund, except the FlexShares Ready Access Variable Income 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^® Global Broad Infrastructure Index Fund seeks to track an Underlying Index 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 Merrill Lynch, Pierce, Fenner & Smith Inc.

The FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund and FlexShares Real Assets Allocation Index Fund are each fund of funds that seeks its investment objective by investing primarily in the shares of other FlexShares ETFs (each an “Underlying Fund”), so the Fund’s investment performance is directly related to the performance of its Underlying Fund(s).


242		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)

The FlexShares Ready Access Variable Income Fund is actively managed and does not seek to replicate the performance of a specified index. The Fund seeks maximum current income consistent with the preservation of capital and liquidity. Each Fund, except the FlexShares Ready Access Variable Income 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 within the scope of Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) 2013-08, follows accounting and reporting guidance under 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 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 of the Trust. The Funds’ investments are

valued using readily available 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 include, periods when trading in a security is suspended, the exchange or market on which a security trades closes early, the trading volume in a security is limited, corporate actions and announcements take place, or regulatory news affecting an issuer is released, such as government approvals. Additionally, the Trust, in its discretion, may make adjustments to the prices of securities held by a Fund if an event occurs after the publication of market values normally used by a Fund but before the time as of which the Fund calculates its NAV, depending on the nature and significance of the event, consistent with applicable regulatory guidance and the Trust’s fair value procedures. Other events that can trigger fair valuing of foreign securities include, for example, significant fluctuations in general market indicators, government actions, or natural disasters.

The use of fair valuation involves the risk that the values used by the Funds to price their investments may be higher or lower than the values used by other investment companies and investors to price the same investments. Fair value pricing involves subjective judgments and it is possible that a fair value determination for a portfolio security may be materially different than the value that could be realized upon the sale of such security. In addition, fair value pricing could result in a difference between the prices used to calculate a Fund’s NAV and the prices used by an Index Fund’s Underlying Index. This difference may adversely affect an Index Fund’s ability to track its Underlying Index. The portfolio securities 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


FLEXSHARES SEMIANNUAL REPORT			243

Notes to the Financial Statements (cont.)

Real Assets Allocation Index Fund, FlexShares International Quality Dividend Index Fund, FlexShares International Quality Dividend Defensive Index Fund and FlexShares International Quality Dividend Dynamic Index Fund are primarily 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, 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 they approximate 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 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, 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.

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.

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


244		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)

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. Generally, 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. The results of such back testing and fair valued securities are reported quarterly to the Board of Trustees.

The following is a summary of the valuations as of April 30, 2016 for each Fund based upon the three levels defined above. During the period ended April 30, 2016, there was one 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
Investments
Common Stocks*	$	739,065,423	$	—	$	—	$	739,065,423
Rights		—		—		—		—
Securities Lending Reinvestments
Bank Note		—		3,000,000		—		3,000,000
Certificates of Deposits		—		72,201,773		—		72,201,773
Commercial Papers		—		17,994,650		—		17,994,650
Master Demand Note		—		2,500,000		—		2,500,000
Money Market Funds		35,500,000		—		—		35,500,000
Repurchase Agreements		—		25,209,542		—		25,209,542
Time Deposit		—		3,000,000		—		3,000,000
Total Investments	$	774,565,423	$	123,905,965	$	—	$	898,471,388

Other Financial Instruments
Assets
Futures Contracts	$	420,520	$	—	$	—	$	420,520
Total Other Financial Instruments	$	420,520	$	—	$	—	$	420,520


FLEXSHARES SEMIANNUAL REPORT			245

Notes to the Financial Statements (cont.)


	Level 1 — Quoted Prices*^a			Level 2 — Other Significant Observable Inputs*^b			Level 3 — Significant Unobservable Inputs		Total
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index
Investments
Common Stocks
Aerospace & Defense	$	4,927,471		$	4,428		$	—	$	4,931,899
Banks		69,455,303			11,426			557		69,467,286
Commercial Services & Supplies		7,631,872			5,683			—		7,637,555
Diversified Financial Services		6,920,932			35,270			—		6,956,202
Oil, Gas & Consumable Fuels		33,590,649			54,078			—		33,644,727
Other*		487,683,962			—			—		487,683,962
Right		26,784			—			—		26,784
Warrant		18,137			—			—		18,137
Securities Lending Reinvestments
Certificates of Deposits		—			2,499,620			—		2,499,620
Master Demand Note		—			500,000			—		500,000
Money Market Funds		10,000,000			—			—		10,000,000
Repurchase Agreements		—			9,237,970			—		9,237,970
Total Investments	$	620,255,110		$	12,348,475		$	557	$	632,604,142

Other Financial Instruments
Assets
Futures Contracts	$	57,876		$	—		$	—	$	57,876
Forward Foreign Currency Contracts		—			157,967			—		157,967
Liabilities
Futures Contracts		(71,689	)		—			—		(71,689	)
Forward Foreign Currency Contracts		—			(129,030	)		—		(129,030	)
Total Other Financial Instruments	$	(13,813	)	$	28,937		$	—	$	15,124

The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:


Balance as of 10/31/2015	$	537
Total gain or loss (realized/unrealized included in earnings)		20
Purchases		—
Sales		—
Transfers into Level 3		—
Transfers out of Level 3		—
Balance as of 04/30/2016	$	557
The amount of change in net unrealized appreciation (depreciation) on investment in Level 3 securities still held at 04/30/2016.	$	20

Common Stock

Fair Value at
04/30/2016

Valuation
Techniques

Unobservable Inputs

Sensitivity¹

Banco Espirito Santo S.A.

557

Consensus
Pricing

Distressed/Defaulted Market Discount, Estimated Recovery Value


246		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)


	Level 1 — Quoted Prices*^c		Level 2 — Other Significant Observable Inputs*^d			Level 3 — Significant Unobservable Inputs		Total
FlexShares Morningstar Emerging Markets Factor Tilt Index
Investments
Common Stocks
Auto Components	$	4,767,289	$	117,151		$	—	$	4,884,440
Chemicals		8,418,681		167,094			—		8,585,775
Construction & Engineering		4,878,578		140,297			—		5,018,875
Construction Materials		4,394,469		438,675			—		4,833,144
Diversified Financial Services		4,055,774		1,353			—		4,057,127
Electronic Equipment, Instruments & Components		8,751,490		3,631			—		8,755,121
Food Products		6,988,558		72,349			—		7,060,907
Health Care Providers & Services		1,498,456		10,630			—		1,509,086
Hotels, Restaurants & Leisure		1,388,344		1,764			—		1,390,108
Household Durables		4,389,709		19,237			—		4,408,946
Industrial Conglomerates		5,366,651		215			—		5,366,866
Insurance		6,483,094		1,872			—		6,484,966
Internet Software & Services		4,677,771		27,020			—		4,704,791
Marine		737,577		2,378			—		739,955
Metals & Mining		11,522,949		104,950			—		11,627,899
Oil, Gas & Consumable Fuels		17,220,210		1,010			—		17,221,220
Paper & Forest Products		1,029,204		74,344			—		1,103,548
Pharmaceuticals		4,195,549		63,121			—		4,258,670
Real Estate Management & Development		14,680,181		309,966			—		14,990,147
Semiconductors & Semiconductor Equipment		8,613,335		24,540			—		8,637,875
Transportation Infrastructure		3,106,432		60,601			—		3,167,033
Other*		129,163,091		—			—		129,163,091
Corporate Bond*		—		9,183			—		9,183
Rights		722		3,186			—		3,908
Warrant		265		—			—		265
Securities Lending Reinvestments
Money Market Funds		600,000		—			—		600,000
Repurchase Agreements		—		996,788			—		996,788
Total Investments	$	256,928,379	$	2,651,355		$	—	$	259,579,734

Other Financial Instruments
Assets
Futures Contracts	$	110,648	$	—		$	—	$	110,648
Forward Foreign Currency Contracts		—		8,323			—		8,323
Liabilities
Forward Foreign Currency Contracts		—		(5,428	)		—		(5,428	)
Total Other Financial Instruments	$	110,648	$	2,895		$	—	$	113,543


FLEXSHARES SEMIANNUAL REPORT			247

Notes to the Financial Statements (cont.)

The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:


Balance as of 10/31/2015	$	56
Total gain or loss (realized/unrealized included in earnings)		464
Purchases		—
Sales		(520	)
Transfers into Level 3		—
Transfers out of Level 3		—
Balance as of 04/30/2016	$	—
The amount of change in net unrealized appreciation (depreciation) on investment in Level 3 securities still held at 04/30/2016.	$	—


	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
Investments
Exchange Traded Fund	$	2,889,466	$	—		$	—	$	2,889,466
Total Investments	$	2,889,466	$	—		$	—	$	2,889,466

Other Financial Instruments
Assets
Forward Foreign Currency Contracts	$	—	$	1,619		$	—	$	1,619
Liabilities
Forward Foreign Currency Contracts		—		(48,947	)		—		(48,947	)
Total Other Financial Instruments	$	—	$	(47,328	)	$	—	$	(47,328	)

	Level 1 — Quoted Prices*		Level 2 — Other Significant Observable Inputs*			Level 3 — Significant Unobservable Inputs		Total
FlexShares Currency Hedged Morningstar EM Factor Tilt Index
Investments
Exchange Traded Fund	$	27,373,419	$	—		$	—	$	27,373,419
Total Investments	$	27,373,419	$	—		$	—	$	27,373,419

Other Financial Instruments
Assets
Forward Foreign Currency Contracts	$	—	$	12,442		$	—	$	12,442
Liabilities
Forward Foreign Currency Contracts		—		(229,898	)		—		(229,898	)
Total Other Financial Instruments	$	—	$	(217,456	)	$	—	$	(217,456	)


248		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)


	Level 1 — Quoted Prices*			Level 2 — Other Significant Observable Inputs*			Level 3 — Significant Unobservable Inputs		Total
FlexShares US Quality Large Cap Index
Investments
Common Stocks*	$	3,851,649		$	—		$	—	$	3,851,649
Total Investments	$	3,851,649		$	—		$	—	$	3,851,649


	Level 1 — Quoted Prices*			Level 2 — Other Significant Observable Inputs*^e			Level 3 — Significant Unobservable Inputs		Total
FlexShares Morningstar Global Upstream Natural Resources Index
Investments
Common Stocks
Chemicals	$	284,789,686		$	3,168,127		$	—	$	287,957,813
Other*		1,603,557,622			—			—		1,603,557,622
Securities Lending Reinvestments
Bank Note		—			2,000,000			—		2,000,000
Certificates of Deposits		—			53,701,290			—		53,701,290
Commercial Papers		—			13,996,168			—		13,996,168
Master Demand Note		—			2,800,000			—		2,800,000
Money Market Funds		22,800,000			—			—		22,800,000
Repurchase Agreements		—			41,057,004			—		41,057,004
Time Deposit		—			3,000,000			—		3,000,000
Total Investments	$	1,911,147,308		$	119,722,589		$	—	$	2,030,869,897

Other Financial Instruments
Assets
Futures Contracts	$	611,184		$	—		$	—	$	611,184
Forward Foreign Currency Contracts		—			174,036			—		174,036
Liabilities
Futures Contracts		(2,514	)		—			—		(2,514	)
Forward Foreign Currency Contracts		—			(295,736	)		—		(295,736	)
Total Other Financial Instruments	$	608,670		$	(121,700	)	$	—	$	486,970


FLEXSHARES SEMIANNUAL REPORT			249

Notes to the Financial Statements (cont.)


	Level 1 — Quoted Prices*^f			Level 2 — Other Significant Observable Inputs*			Level 3 — Significant Unobservable Inputs		Total
FlexShares STOXX^® Global Broad Infrastructure Index
Investments
Common Stocks*	$	616,356,603		$	—		$	—	$	616,356,603
Securities Lending Reinvestments
Certificates of Deposits		—			13,100,305			—		13,100,305
Commercial Papers		—			1,699,607			—		1,699,607
Master Demand Note		—			2,000,000			—		2,000,000
Money Market Funds		10,200,000			—			—		10,200,000
Repurchase Agreements		—			13,912,310			—		13,912,310
Total Investments	$	626,556,603		$	30,712,222		$	—	$	657,268,825

Other Financial Instruments
Assets
Futures Contracts	$	85,547		$	—		$	—	$	85,547
Forward Foreign Currency Contracts		—			119,337			—		119,337
Liabilities
Futures Contracts		(32,179	)		—			—		(32,179	)
Forward Foreign Currency Contracts		—			(77,534	)		—		(77,534	)
Total Other Financial Instruments	$	53,368		$	41,803		$	—	$	95,171

	Level 1 — Quoted Prices*			Level 2 — Other Significant Observable Inputs*			Level 3 — Significant Unobservable Inputs		Total
FlexShares Global Quality Real Estate Index
Investments
Common Stocks*	$	190,346,798		$	—		$	—	$	190,346,798
Securities Lending Reinvestments
Certificates of Deposits		—			1,899,620			—		1,899,620
Master Demand Note		—			400,000			—		400,000
Money Market Funds		6,500,000			—			—		6,500,000
Repurchase Agreements		—			8,236,585			—		8,236,585
Total Investments	$	196,846,798		$	10,536,205		$	—	$	207,383,003

Other Financial Instruments
Assets
Futures Contracts	$	34,893		$	—		$	—	$	34,893
Forward Foreign Currency Contracts		—			15,775			—		15,775
Liabilities
Futures Contracts		(16,214	)		—			—		(16,214	)
Forward Foreign Currency Contracts		—			(24,929	)		—		(24,929	)
Total Other Financial Instruments	$	18,679		$	(9,154	)	$	—	$	9,525


250		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)


	Level 1 — Quoted Prices*		Level 2 — Other Significant Observable Inputs*		Level 3 — Significant Unobservable Inputs		Total
FlexShares Real Assets Allocation Index
Investments
Exchange Traded Funds	$	1,296,823	$	—	$	—	$	1,296,823
Total Investments	$	1,296,823	$	—	$	—	$	1,296,823

	Level 1 — Quoted Prices*		Level 2 — Other Significant Observable Inputs*		Level 3 — Significant Unobservable Inputs		Total
FlexShares Quality Dividend Index
Investments
Common Stocks*	$	1,255,720,527	$	—	$	—	$	1,255,720,527
Securities Lending Reinvestments
Certificates of Deposits		—		91,898,858		—		91,898,858
Commercial Papers		—		16,996,057		—		16,996,057
Master Demand Note		—		6,500,000		—		6,500,000
Money Market Funds		22,500,000		—		—		22,500,000
Repurchase Agreements		—		67,868,586		—		67,868,586
Time Deposit		—		5,000,000		—		5,000,000
Total Investments	$	1,278,220,527	$	188,263,501	$	—	$	1,466,484,028

Other Financial Instruments
Assets
Futures Contracts	$	211,971	$	—	$	—	$	211,971
Total Other Financial Instruments	$	211,971	$	—	$	—	$	211,971


FLEXSHARES SEMIANNUAL REPORT			251

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 Defensive Index
Investments
Common Stocks*	$	204,944,894	$	—	$	—	$	204,944,894
Rights		—		8,988		—		8,988
Securities Lending Reinvestments
Certificates of Deposits		—		6,098,916		—		6,098,916
Commercial Papers		—		1,799,588		—		1,799,588
Master Demand Note		—		1,500,000		—		1,500,000
Money Market Funds		13,000,000		—		—		13,000,000
Repurchase Agreements		—		18,410,967		—		18,410,967
Total Investments	$	217,944,894	$	27,818,459	$	—	$	245,763,353

Other Financial Instruments
Assets
Futures Contracts	$	34,676	$	—	$	—	$	34,676
Total Other Financial Instruments	$	34,676	$	—	$	—	$	34,676

	Level 1 — Quoted Prices*		Level 2 — Other Significant Observable Inputs*		Level 3 — Significant Unobservable Inputs		Total
FlexShares Quality Dividend Dynamic Index
Investments
Common Stocks*	$	51,085,751	$	—	$	—	$	51,085,751
Securities Lending Reinvestments
Certificate of Deposit		—		400,000		—		400,000
Commercial Paper		—		499,904		—		499,904
Master Demand Note		—		400,000		—		400,000
Money Market Funds		4,200,000		—		—		4,200,000
Repurchase Agreements		—		3,003,086		—		3,003,086
Total Investments	$	55,285,751	$	4,302,990	$	—	$	59,588,741

Other Financial Instruments
Assets
Futures Contracts	$	10,646	$	—	$	—	$	10,646
Total Other Financial Instruments	$	10,646	$	—	$	—	$	10,646


252		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)


	Level 1 — Quoted Prices*			Level 2 — Other Significant Observable Inputs*^g			Level 3 — Significant Unobservable Inputs		Total
FlexShares International Quality Dividend Index
Investments
Common Stocks
Metals & Mining	$	11,719,700		$	2,199,067		$	—	$	13,918,767
Other*		347,048,585			—			—		347,048,585
Securities Lending Reinvestments
Certificate of Deposit		—			600,000			—		600,000
Master Demand Note		—			400,000			—		400,000
Money Market Funds		4,200,000			—			—		4,200,000
Repurchase Agreements		—			7,917,655			—		7,917,655
Total Investments	$	362,968,285		$	11,116,722		$	—	$	374,085,007

Other Financial Instruments
Assets
Futures Contracts	$	53,944		$	—		$	—	$	53,944
Forward Foreign Currency Contracts		—			35,535			—		35,535
Liabilities
Futures Contracts		(72,903	)		—			—		(72,903	)
Forward Foreign Currency Contracts		—			(26,242	)		—		(26,242	)
Total Other Financial Instruments	$	(18,959	)	$	9,293		$	—	$	(9,666	)


	Level 1 — Quoted Prices*			Level 2 — Other Significant Observable Inputs*			Level 3 — Significant Unobservable Inputs		Total
FlexShares International Quality Dividend Defensive Index
Investments
Common Stocks*	$	55,396,976		$	—		$	—	$	55,396,976
Securities Lending Reinvestments
Money Market Funds		600,000			—			—		600,000
Repurchase Agreements		—			1,455,512			—		1,455,512
Total Investments	$	55,996,976		$	1,455,512		$	—	$	57,452,488

Other Financial Instruments
Assets
Futures Contracts	$	35,272		$	—		$	—	$	35,272
Forward Foreign Currency Contracts		—			8,545			—		8,545
Liabilities
Forward Foreign Currency Contracts		—			(9,175	)		—		(9,175	)
Total Other Financial Instruments	$	35,272		$	(630	)	$	—	$	34,642


FLEXSHARES SEMIANNUAL REPORT			253

Notes to the Financial Statements (cont.)


	Level 1 — Quoted Prices*		Level 2 — Other Significant Observable Inputs*^h			Level 3 — Significant Unobservable Inputs		Total
FlexShares International Quality Dividend Dynamic Index
Investments
Common Stocks
Metals & Mining	$	1,213,505	$	241,324		$	—	$	1,454,829
Other*		26,034,830		—			—		26,034,830
Securities Lending Reinvestments
Money Market Funds		500,000		—			—		500,000
Repurchase Agreement		—		153,141			—		153,141
Total Investments	$	27,748,335	$	394,465		$	—	$	28,142,800

Other Financial Instruments
Assets
Futures Contracts	$	15,663	$	—		$	—	$	15,663
Forward Foreign Currency Contracts		—		8,647			—		8,647
Liabilities
Forward Foreign Currency Contracts		—		(7,702	)		—		(7,702	)
Total Other Financial Instruments	$	15,663	$	945		$	—	$	16,608

	Level 1 — Quoted Prices*		Level 2 — Other Significant Observable Inputs*			Level 3 — Significant Unobservable Inputs		Total
FlexShares iBoxx 3-Year Target Duration TIPS Index
Investments
U.S. Treasury Obligations	$	—	$	1,839,942,536		$	—	$	1,839,942,536
Total Investments	$	—	$	1,839,942,536		$	—	$	1,839,942,536

	Level 1 — Quoted Prices*		Level 2 — Other Significant Observable Inputs*			Level 3 — Significant Unobservable Inputs		Total
FlexShares iBoxx 5-Year Target Duration TIPS Index
Investments
U.S. Treasury Obligations	$	—	$	517,422,217		$	—	$	517,422,217
Total Investments	$	—	$	517,422,217		$	—	$	517,422,217


254		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)


	Level 1 — Quoted Prices*		Level 2 — Other Significant Observable Inputs*		Level 3 — Significant Unobservable Inputs		Total
FlexShares Disciplined Duration MBS Index
Investments
U.S. Government & Agency Securities	$	—	$	31,618,666	$	—	$	31,618,666
Total Investments	$	—	$	31,618,666	$	—	$	31,618,666

	Level 1 — Quoted Prices*		Level 2 — Other Significant Observable Inputs*		Level 3 — Significant Unobservable Inputs		Total
FlexShares Credit-Scored US Corporate Bond Index
Investments
Corporate Bonds*	$	—	$	22,790,815	$	—	$	22,790,815
Total Investments	$	—	$	22,790,815	$	—	$	22,790,815

	Level 1 — Quoted Prices*		Level 2 — Other Significant Observable Inputs*		Level 3 — Significant Unobservable Inputs		Total
FlexShares Credit-Scored US Long Corporate Bond Index
Investments
Corporate Bonds*	$	—	$	10,458,947	$	—	$	10,458,947
Total Investments	$	—	$	10,458,947	$	—	$	10,458,947

	Level 1 — Quoted Prices*		Level 2 — Other Significant Observable Inputs*		Level 3 — Significant Unobservable Inputs		Total
FlexShares Ready Access Variable Income
Investments
Asset-Backed Securities	$	—	$	8,205,629	$	—	$	8,205,629
Corporate Bonds*		—		73,789,697		—		73,789,697
Municipal Bonds		—		999,780		—		999,780
Commercial Papers		—		4,998,511		—		4,998,511
Repurchase Agreement		—		6,000,000		—		6,000,000
U.S. Treasury Obligations		—		2,196,953		—		2,196,953
Total Investments	$	—	$	96,190,570	$	—	$	96,190,570

*	See Schedules of Investments for segregation by industry type.

During the period ended April 30, 2016, the FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund changed classification of security with a market value of $24,687 or 0.00% of the Fund’s net assets from Level 2 to Level 1 due to security being valued at unadjusted quoted market prices.


FLEXSHARES SEMIANNUAL REPORT			255

Notes to the Financial Statements (cont.)

During the period ended April 30, 2016, the FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund changed classification of securities with an aggregated market value of $95,031 or 0.02% of the Fund’s net assets from Level 1 to Level 2 due to securities being valued with other observable inputs.

c	During the period ended April 30, 2016, the FlexShares Morningstar Emerging Markets Factor Tilt Index Fund changed classification of security with a market value of $56,314 or 0.02% of the Fund’s net assets from Level 2 to Level 1 due to security being valued at unadjusted quoted market prices.

During the period ended April 30, 2016, the FlexShares Morningstar Emerging Markets Factor Tilt Index Fund changed classification of securities with an aggregated market value of $835,596 or 0.32% of the Fund’s net assets from Level 1 to Level 2 due to securities being valued with other observable inputs.

e	During the period ended April 30, 2016, the FlexShares Morningstar Global Upstream Natural Resources Index Fund changed classification of security with a market value of $3,168,127 or 0.17% 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, 2016, the FlexShares STOXX^® Global Broad Infrastructure Index Fund changed classification of security with a market value of $835,280 or 0.13% of the Fund’s net assets from Level 2 to Level 1 due to security being valued at unadjusted quoted market prices.

g	During the period ended April 30, 2016, the FlexShares International Quality Dividend Index Fund changed classification of security with a market value of $2,199,067 or 0.60% of the Fund’s net assets from Level 1 to Level 2 due to security being valued with other observable inputs.

h	During the period ended April 30, 2016, the FlexShares International Quality Dividend Dynamic Index Fund changed classification of security with a market value of $241,324 or 0.86% of the Fund’s net assets from Level 1 to Level 2 due to security being valued with other observable inputs.

The significant unobservable inputs used in the fair value measurement is the price to earnings multiple along with liquidity discounts. Significant increases in the price to earnings multiple in isolation would result in a significantly higher (lower) fair value measurement while an increase (decrease) in liquidity discounts in isolation would result in a significantly lower (higher) 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 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 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.


256		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)

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 securities of U.S. companies, 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 investments 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 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 may invest in inflation-indexed securities.

Inflation-indexed securities 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 inflation-indexed bonds 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 U.S. Treasury inflation-indexed bonds, even during a period of deflation.

The value of inflation-indexed bonds 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 inflation-indexed bonds. 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 inflation-indexed bonds. Any increase in the principal amount of an inflation-indexed bond 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 bond’s inflation measure.

The periodic adjustment of U.S. inflation-indexed bonds 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.


FLEXSHARES SEMIANNUAL REPORT			257

Notes to the Financial Statements (cont.)

Mortgage-Backed Pass-Through Securities

The FlexShares Disciplined Duration MBS Index Fund invests primarily in U.S. agency mortgage-backed pass-through securities (“MBS”), a category of pass-through securities backed by pools of mortgages and issued by one of the following U.S. government agencies: the Federal National Mortgage Association (FNMA or Fannie Mae), the Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac) or the Government National Mortgage Association (GNMA or Ginnie Mae) (each a “US Agency”). Under normal circumstances, the Fund will invest at least 80% of its total assets in the securities of its Underlying Index and in “to-be announced transactions” (“TBA transactions”) that represent securities in its Underlying Index. In a TBA transaction, the buyer and seller agree upon general trade parameters such as agency, coupon rate, settlement date, par amount and price. The actual pools delivered generally are determined two days prior to settlement.

Pending settlement of such contracts, the Fund will invest in liquid, short-term instruments.

Mortgage Dollar Rolls

The FlexShares Disciplined Duration MBS Index Fund 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, the 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, 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. At April 30, 2016, only the FlexShares Ready Access Variable Income Fund had entered into repurchase agreements, as reflected in its Schedule of Investments under the caption “Repurchase Agreements.”

As of the period ended April 30, 2016 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


258		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)

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 Fund invested cash collateral for loans of portfolio securities in repurchase agreements, as reflected in the respective Schedule of Investments under the caption “Securities Lending Reinvestments.”

Securities Lending

Each Fund may lend securities to banks, brokers and dealers or other qualified institutions. In exchange, the Fund is required to receive minimum initial collateral value as follows:


Type of Loan	Minimum 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. Securities lending may represent no more than one-third of the value

of the 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 the 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 irrevocable bank letters of credit (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 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 ASU 2014-11, Balance Sheet (Topic) 860: Repurchase to-Maturity Transactions, Repurchase Financings, and Disclosures, liabilities under the outstanding securities lending


FLEXSHARES SEMIANNUAL REPORT			259

Notes to the Financial Statements (cont.)

transactions as of April 30, 2016, which were comprised of cash, were as follow:


Fund
FlexShares Morningstar US Market Factor Tilt Index Fund	$	159,364,590
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund		22,236,682
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund		1,596,788
FlexShares Morningstar Global Upstream Natural Resources Index Fund		139,326,422
FlexShares STOXX^® Global Broad Infrastructure Index Fund		40,906,610
FlexShares Global Quality Real Estate Index Fund		17,035,443
FlexShares Quality Dividend Index Fund		210,724,143
FlexShares Quality Dividend Defensive Index Fund		40,805,451
FlexShares Quality Dividend Dynamic Index Fund		8,502,272
FlexShares International Quality Dividend Index Fund		13,117,655
FlexShares International Quality Dividend Defensive Index Fund		2,055,512
FlexShares International Quality Dividend Dynamic Index Fund		653,141

At April 30, 2016, 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”. As of April 30, 2016, 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 Quality Dividend Dynamic Index Fund had open futures contracts.

The use of futures contracts involves, to varying degrees, elements of market and counterparty risk which may exceed the amounts recognized in the Statements of Assets and Liabilities. Futures contracts present the following risks: imperfect correlation between the change in market value of a Fund’s securities and the price of futures contracts; the possible inability to close a futures contract when desired; losses due to unanticipated market movements which potentially are unlimited; and the possible inability of NTI to correctly predict the direction of securities prices, interest rates, currency exchange rates and other economic factors. Futures markets are highly volatile and the use of futures may increase the volatility of a Fund’s NAV. As a result of the low margin deposits normally required in futures trading, a relatively small price movement in a futures contract may result in substantial losses to a Fund. Futures contracts may be illiquid, and exchanges may limit fluctuations in futures contract prices during a single day. Foreign exchanges or boards of trade generally do not offer the same protection as U.S. exchanges.


260		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)

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 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.

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 realized gains or losses, if any, in “Net realized gain (loss) on foreign currency transactions” and 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


FLEXSHARES SEMIANNUAL REPORT			261

Notes to the Financial Statements (cont.)

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, 2016, 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, FlexShares International Quality Dividend Defensive Index Fund, and the FlexShares International Quality Dividend Dynamic 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, FlexShares International Quality Dividend Defensive Index Fund, FlexShares International Quality Dividend Dynamic Index Fund, and the FlexShares Ready Access Variable Income Fund that are subject to master netting arrangements or similar agreements in the Statements of Assets and Liabilities. The following table presents the gross and net amounts of these assets and liabilities:


				Gross Amounts Not Offset in the Statement of Assets and Liabilities
		Gross Amounts of Assets presented in Statements of Assets and Liabilities		Financial Instruments			Cash Collateral Received		Net Amount
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund	Foreign Currency Contracts — Bank of Montreal	$	27,234	$	—		$	—	$	27,234
	Foreign Currency Contracts — Bank of New York		83,761		(3,347	)		—		80,414
	Foreign Currency Contracts — Citibank N.A.		2		(2	)		—		—
	Foreign Currency Contracts — Morgan Stanley		27,501		—			—		27,501
	Foreign Currency Contracts — Societe Generale		2,182		(2,182	)		—		—
	Foreign Currency Contracts — The Toronto-Dominion Bank		17,287		(17,287	)		—		—
	Total	$	157,967	$	(22,818	)	$	—	$	135,149


262		FLEXSHARES SEMIANNUAL REPORT

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 Morningstar Emerging Markets Factor Tilt Index Fund	Foreign Currency Contracts — Bank of New York	$	1,707	$	—		$	—	$	1,707
	Foreign Currency Contracts — Citibank N.A.		545		—			—		545
	Foreign Currency Contracts — Morgan Stanley		6,071		(5,424	)		—		647
	Foreign Currency Contracts — Societe Generale		—		—			—		—
	Total	$	8,323	$	(5,424	)	$	—	$	2,899
FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund	Foreign Currency Contracts — The Toronto-Dominion Bank	$	1,619	$	(1,619	)	$	—	$	—
	Total	$	1,619	$	(1,619	)	$	—	$	—
FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund	Foreign Currency Contracts — Citibank N.A.	$	9,046	$	(9,046	)	$	—	$	—
	Foreign Currency Contracts — The Toronto-Dominion Bank		3,396		(3,396	)		—		—
	Total	$	12,442	$	(12,442	)	$	—	$	—
FlexShares Morningstar Global Upstream Natural Resources Index Fund	Foreign Currency Contracts — Bank of Montreal	$	—	$	—		$	—	$	—
	Foreign Currency Contracts — Bank of New York		96,121		(42,065	)		—		54,056
	Foreign Currency Contracts — Citibank N.A.		13,022		(13,022	)		—		—
	Foreign Currency Contracts — Morgan Stanley		59,103		(59,103	)		—		—
	Foreign Currency Contracts — Societe Generale		70		(70	)		—		—
	Foreign Currency Contracts — The Toronto-Dominion Bank		5,720		(5,720	)		—		—
	Total	$	174,036	$	(119,980	)	$	—	$	54,056
FlexShares STOXX^® Global Broad Infrastructure Index Fund	Foreign Currency Contracts — Bank of Montreal	$	—	$	—		$	—	$	—
	Foreign Currency Contracts — Bank of New York		84,891		(15,299	)		—		69,592
	Foreign Currency Contracts — Citibank N.A.		13,137		(6,712	)		—		6,425
	Foreign Currency Contracts — Goldman Sachs & Co.		—		—			—		—
	Foreign Currency Contracts — JPMorgan Chase & Co.		1,144		(1,144	)		—		—
	Foreign Currency Contracts — Morgan Stanley		20,153		(20,153	)		—		—
	Foreign Currency Contracts — Societe Generale		12		(12	)		—		—
	Foreign Currency Contracts — The Toronto-Dominion Bank		—		—			—		—
	Total	$	119,337	$	(43,320	)	$	—	$	76,017
FlexShares Global Quality Real Estate Index Fund	Foreign Currency Contracts — Bank of America	$	11,914	$	(6	)	$	—	$	11,908
	Foreign Currency Contracts — Bank of Montreal		—		—			—		—
	Foreign Currency Contracts — Bank of New York		484		(484	)		—		—
	Foreign Currency Contracts — Citibank N.A.		1,805		(1,805	)		—		—
	Foreign Currency Contracts — Morgan Stanley		1,572		(762	)		—		810
	Foreign Currency Contracts — Societe Generale		—		—			—		—
	Foreign Currency Contracts — The Toronto-Dominion Bank		—		—			—		—
	Total	$	15,775	$	(3,057	)	$	—	$	12,718


FLEXSHARES SEMIANNUAL REPORT			263

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 International Quality Dividend Index Fund	Foreign Currency Contracts — Bank of Montreal	$	5,892	$	—		$	—	$	5,892
	Foreign Currency Contracts — Bank of New York		13,493		(165	)		—		13,328
	Foreign Currency Contracts — Citibank N.A.		70		(70	)		—		—
	Foreign Currency Contracts — Morgan Stanley		16,080		(4,316	)		—		11,764
	Foreign Currency Contracts — Societe Generale		—		—			—		—
	Foreign Currency Contracts — The Toronto-Dominion Bank		—		—			—		—
	Total	$	35,535	$	(4,551	)	$	—	$	30,984
FlexShares International Quality Dividend Defensive Index Fund	Foreign Currency Contracts — Bank of Montreal	$	3,568	$	—		$	—	$	3,568
	Foreign Currency Contracts — Bank of New York		1,943		(1,943	)		—		—
	Foreign Currency Contracts — BNP Paribas S.A.		166		—			—		166
	Foreign Currency Contracts — Citibank N.A.		45		(45	)		—		—
	Foreign Currency Contracts — Goldman Sachs & Co.		188		—			—		188
	Foreign Currency Contracts — JPMorgan Chase & Co.		27		(27	)		—		—
	Foreign Currency Contracts — Morgan Stanley		2,529		(224	)		—		2,305
	Foreign Currency Contracts — Societe Generale		79		(79	)		—		—
	Foreign Currency Contracts — The Toronto-Dominion Bank		—		—			—		—
	Total	$	8,545	$	(2,318	)	$	—	$	6,227
FlexShares International Quality Dividend Dynamic Index Fund	Foreign Currency Contracts — Bank of Montreal	$	—	$	—		$	—	$	—
	Foreign Currency Contracts — Bank of New York		2,367		(488	)		—		1,879
	Foreign Currency Contracts — Citibank N.A.		87		—			—		87
	Foreign Currency Contracts — Goldman Sachs & Co.		3,412		—			—		3,412
	Foreign Currency Contracts — JPMorgan Chase & Co.		17		—			—		17
	Foreign Currency Contracts — Morgan Stanley		2,329		(1,239	)		—		1,090
	Foreign Currency Contracts — Societe Generale		364		(364	)		—		—
	Foreign Currency Contracts — The Toronto-Dominion Bank		71		(71	)		—		—
	Total	$	8,647	$	(2,162	)	$	—	$	6,485
FlexShares Ready Access Variable Income Fund	Repurchase Agreements — SG Americas Securities LLC	$	6,000,000	$	(6,000,000	)	$	—	$	—
	Total	$	6,000,000	$	(6,000,000	)	$	—	$	—


264		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)


					Gross Amounts Not Offset in the Statement of Assets and Liabilities
		Gross Amounts of Liabilities presented in Statements of Assets and Liabilities			Financial Instruments		Cash Collateral Pledged		Net Amount
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund	Foreign Currency Contracts — Bank of Montreal	$	—		$	—	$	—	$	—
	Foreign Currency Contracts — Bank of New York		(3,347	)		3,347		—		—
	Foreign Currency Contracts — Citibank N.A.		(10,852	)		2		—		(10,850	)
	Foreign Currency Contracts — Morgan Stanley		—			—		—		—
	Foreign Currency Contracts — Societe Generale		(5,670	)		2,182		—		(3,488	)
	Foreign Currency Contracts — The Toronto-Dominion Bank		(109,161	)		17,287		—		(91,874	)
	Total	$	(129,030	)	$	22,818	$	—	$	(106,212	)
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund	Foreign Currency Contracts — Bank of New York	$	—		$	—	$	—	$	—
	Foreign Currency Contracts — Citibank N.A.		—			—		—		—
	Foreign Currency Contracts — Morgan Stanley		(5,424	)		5,424		—		—
	Foreign Currency Contracts — Societe Generale		(4	)		—		—		(4	)
	Total	$	(5,428	)	$	5,424	$	—	$	(4	)
FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund	Foreign Currency Contracts — The Toronto-Dominion Bank	$	(48,947	)	$	1,619	$	—	$	(47,328	)
	Total	$	(48,947	)	$	1,619	$	—	$	(47,328	)
FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund	Foreign Currency Contracts — Citibank N.A.	$	(140,042	)	$	9,046	$	—	$	(130,996	)
	Foreign Currency Contracts — The Toronto-Dominion Bank		(89,856	)		3,396		—		(86,460	)
	Total	$	(229,898	)	$	12,442	$	—	$	(217,456	)
FlexShares Morningstar Global Upstream Natural Resources Index Fund	Foreign Currency Contracts — Bank of Montreal	$	(1,883	)	$	—	$	—	$	(1,883	)
	Foreign Currency Contracts — Bank of New York		(42,065	)		42,065		—		—
	Foreign Currency Contracts — Citibank N.A.		(36,835	)		13,022		—		(23,813	)
	Foreign Currency Contracts — Morgan Stanley		(148,204	)		59,103		—		(89,101	)
	Foreign Currency Contracts — Societe Generale		(3,867	)		70		—		(3,797	)
	Foreign Currency Contracts — The Toronto-Dominion Bank		(62,882	)		5,720		—		(57,162	)
	Total	$	(295,736	)	$	119,980	$	—	$	(175,756	)
FlexShares STOXX^® Global Broad Infrastructure Index Fund	Foreign Currency Contracts — Bank of Montreal	$	(1,679	)	$	—	$	—	$	(1,679	)
	Foreign Currency Contracts — Bank of New York		(15,299	)		15,299		—		—
	Foreign Currency Contracts — Citibank N.A.		(6,712	)		6,712		—		—
	Foreign Currency Contracts — Goldman Sachs & Co.		(198	)		—		—		(198	)
	Foreign Currency Contracts — JPMorgan Chase & Co.		(4,117	)		1,144		—		(2,973	)
	Foreign Currency Contracts — Morgan Stanley		(30,231	)		20,153		—		(10,078	)
	Foreign Currency Contracts — Societe Generale		(2,261	)		12		—		(2,249	)
	Foreign Currency Contracts — The Toronto-Dominion Bank		(17,037	)		—		—		(17,037	)
	Total	$	(77,534	)	$	43,320	$	—	$	(34,214	)


FLEXSHARES SEMIANNUAL REPORT			265

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 Global Quality Real Estate Index Fund	Foreign Currency Contracts — Bank of America	$	(6	)	$	6	$	—	$	—
	Foreign Currency Contracts — Bank of Montreal		(3,201	)		—		—		(3,201	)
	Foreign Currency Contracts — Bank of New York		(9,356	)		484		—		(8,872	)
	Foreign Currency Contracts — Citibank N.A.		(2,778	)		1,805		—		(973	)
	Foreign Currency Contracts — Morgan Stanley		(762	)		762		—		—
	Foreign Currency Contracts — Societe Generale		(1	)		—		—		(1	)
	Foreign Currency Contracts — The Toronto-Dominion Bank		(8,825	)		—		—		(8,825	)
	Total	$	(24,929	)	$	3,057	$	—	$	(21,872	)
FlexShares International Quality Dividend Index Fund	Foreign Currency Contracts — Bank of Montreal	$	—		$	—	$	—	$	—
	Foreign Currency Contracts — Bank of New York		(165	)		165		—		—
	Foreign Currency Contracts — Citibank N.A.		(12,383	)		70		—		(12,313	)
	Foreign Currency Contracts — Morgan Stanley		(4,316	)		4,316		—		—
	Foreign Currency Contracts — Societe Generale		(17	)		—		—		(17	)
	Foreign Currency Contracts — The Toronto-Dominion Bank		(9,361	)		—		—		(9,361	)
	Total	$	(26,242	)	$	4,551	$	—	$	(21,691	)
FlexShares International Quality Dividend Defensive Index Fund	Foreign Currency Contracts — Bank of Montreal	$	—		$	—	$	—	$	—
	Foreign Currency Contracts — Bank of New York		(2,791	)		1,943		—		(848	)
	Foreign Currency Contracts — BNP Paribas S.A.		—			—		—		—
	Foreign Currency Contracts — Citibank N.A.		(4,142	)		45		—		(4,097	)
	Foreign Currency Contracts — Goldman Sachs & Co.		—			—		—		—
	Foreign Currency Contracts — JPMorgan Chase & Co.		(215	)		27		—		(188	)
	Foreign Currency Contracts — Morgan Stanley		(224	)		224		—		—
	Foreign Currency Contracts — Societe Generale		(992	)		79		—		(913	)
	Foreign Currency Contracts — The Toronto-Dominion Bank		(811	)		—		—		(811	)
	Total	$	(9,175	)	$	2,318	$	—	$	(6,857	)
FlexShares International Quality Dividend Dynamic Index Fund	Foreign Currency Contracts — Bank of Montreal	$	(3,863	)	$	—	$	—	$	(3,863	)
	Foreign Currency Contracts — Bank of New York		(488	)		488		—		—
	Foreign Currency Contracts — Citibank N.A.		—			—		—		—
	Foreign Currency Contracts — Goldman Sachs & Co.		—			—		—		—
	Foreign Currency Contracts — JPMorgan Chase & Co.		—			—		—		—
	Foreign Currency Contracts — Morgan Stanley		(1,239	)		1,239		—		—
	Foreign Currency Contracts — Societe Generale		(866	)		364		—		(502	)
	Foreign Currency Contracts — The Toronto-Dominion Bank		(1,246	)		71		—		(1,175	)
	Total	$	(7,702	)	$	2,162	$	—	$	(5,540	)


266		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)

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, 2016

Derivatives by risk type

Counterparty

Statements of Assets
and Liabilities Location

Fund

Value

Equity Index Futures Contracts

UBS
AG

Assets — Unrealized appreciation on futures contracts

FlexShares Morningstar US Market Factor Tilt Index Fund

420,520

Equity Index Futures Contracts

UBS
AG

Assets — Unrealized appreciation on futures contracts

FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund

57,876

Equity Index Futures Contracts

UBS
AG

Liabilities — Unrealized depreciation on futures contracts

FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund

(71,689

)

Foreign Currency Contracts

Bank of
Montreal,
Bank of
New
York,
Citibank
N.A.,
Morgan
Stanley,
Societe
Generale
and The
Toronto-
Dominion
Bank

Assets — Unrealized appreciation on forward foreign currency contracts

FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund

157,967

Foreign Currency Contracts

Bank of
New
York,
Citibank
N.A.,
Societe
Generale
and The
Toronto-
Dominion
Bank

Liabilities — Unrealized depreciation on forward foreign currency contracts

FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund

(129,030

)

Equity Index Futures Contracts

UBS
AG

Assets — Unrealized appreciation on futures contracts

FlexShares Morningstar Emerging Markets Factor Tilt Index Fund

110,648

Foreign Currency Contracts

Bank of
New
York,
Citibank
N.A. and
Morgan
Stanley

Assets — Unrealized appreciation on forward foreign currency contracts

FlexShares Morningstar Emerging Markets Factor Tilt Index Fund

8,323


FLEXSHARES SEMIANNUAL REPORT			267

Notes to the Financial Statements (cont.)

Derivatives by risk type

Counterparty

Statements of Assets
and Liabilities Location

Fund

Value

Foreign Currency Contracts

Morgan
Stanley
and
Societe
Generale

Liabilities — Unrealized depreciation on forward foreign currency contracts

FlexShares Morningstar Emerging Markets Factor Tilt Index Fund

(5,428

)

Foreign Currency Contracts

The
Toronto-
Dominion
Bank

Assets — Unrealized appreciation on forward foreign currency contracts

FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund

1,619

Foreign Currency Contracts

The
Toronto-
Dominion
Bank

Liabilities — Unrealized depreciation on forward foreign currency contracts

FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund

(48,947

)

Foreign Currency Contracts

Citibank
N.A. and
The
Toronto-
Dominion
Bank

Assets — Unrealized appreciation on forward foreign currency contracts

FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund

12,442

Foreign Currency Contracts

Citibank
N.A. and
The
Toronto-
Dominion
Bank

Liabilities — Unrealized depreciation on forward foreign currency contracts

FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund

(229,898

)

Equity Index Futures Contracts

UBS
AG

Assets — Unrealized appreciation on futures contracts

FlexShares Morningstar Global Upstream Natural Resources Index Fund

611,184

Equity Index Futures Contracts

UBS
AG

Liabilities — Unrealized depreciation on futures contracts

FlexShares Morningstar Global Upstream Natural Resources Index Fund

(2,514

)

Foreign Currency Contracts

Bank of
New
York,
Citibank
N.A.,
Morgan
Stanley,
Societe
Generale
and The
Toronto-
Dominion
Bank

Assets — Unrealized appreciation on forward foreign currency contracts

FlexShares Morningstar Global Upstream Natural Resources Index Fund

174,036


268		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)

Derivatives by risk type

Counterparty

Statements of Assets
and Liabilities Location

Fund

Value

Foreign Currency Contracts

Bank of
Montreal,
Bank of
New
York,
Citibank
N.A.,
Morgan
Stanley,
Societe
Generale
and The
Toronto-
Dominion
Bank

Liabilities — Unrealized depreciation on forward foreign currency contracts

FlexShares Morningstar Global Upstream Natural Resources Index Fund

(295,736

)

Equity Index Futures Contracts

Citibank
N.A.

Assets — Unrealized appreciation on futures contracts

FlexShares STOXX^® Global Broad Infrastructure Index Fund

85,547

Equity Index Futures Contracts

Citibank
N.A.

Liabilities — Unrealized depreciation on futures contracts

FlexShares STOXX^® Global Broad Infrastructure Index Fund

(32,179

)

Foreign Currency Contracts

Bank of
New
York,
Citibank
N.A.,
JPMorgan
Chase &
Co.,
Morgan
Stanley
and
Societe
Generale

Assets — Unrealized appreciation on forward foreign currency contracts

FlexShares STOXX^® Global Broad Infrastructure Index Fund

119,337


FLEXSHARES SEMIANNUAL REPORT			269

Notes to the Financial Statements (cont.)

Derivatives by risk type

Counterparty

Statements of Assets
and Liabilities Location

Fund

Value

Foreign Currency Contracts

Bank of
Montreal,
Bank of
New
York,
Citibank
N.A.,
Goldman
Sachs &
Co.,
JPMorgan
Chase &
Co.,
Morgan
Stanley,
Societe
Generale
and The
Toronto-
Dominion
Bank

Liabilities — Unrealized depreciation on forward foreign currency contracts

FlexShares STOXX^® Global Broad Infrastructure Index Fund

(77,534

)

Equity Index Futures Contracts

Citibank
N.A.

Assets — Unrealized appreciation on futures contracts

FlexShares Global Quality Real Estate Index Fund

34,893

Equity Index Futures Contracts

Citibank
N.A.

Liabilities — Unrealized depreciation on futures contracts

FlexShares Global Quality Real Estate Index Fund

(16,214

)

Foreign Currency Contracts

Bank of
America,
Bank of
New
York,
Citibank
N.A. and
Morgan
Stanley

Assets — Unrealized appreciation on forward foreign currency contracts

FlexShares Global Quality Real Estate Index Fund

15,775


270		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)

Derivatives by risk type

Counterparty

Statements of Assets
and Liabilities Location

Fund

Value

Foreign Currency Contracts

Bank of
America,
Bank of
Montreal,
Bank of
New
York,
Citibank
N.A.,
Morgan
Stanley,
Societe
Generale
and The
Toronto-
Dominion
Bank

Liabilities — Unrealized depreciation on forward foreign currency contracts

FlexShares Global Quality Real Estate Index Fund

(24,929

)

Equity Index Futures Contracts

Citibank
N.A.

Assets — Unrealized appreciation on futures contracts

FlexShares Quality Dividend Index Fund

211,971

Equity Index Futures Contracts

Citibank
N.A.

Assets — Unrealized appreciation on futures contracts

FlexShares Quality Dividend Defensive Index Fund

34,676

Equity Index Futures Contracts

Citibank
N.A.

Assets — Unrealized appreciation on futures contracts

FlexShares Quality Dividend Dynamic Index Fund

10,646

Equity Index Futures Contracts

Citibank
N.A.

Assets — Unrealized appreciation on futures contracts

FlexShares International Quality Dividend Index Fund

53,944

Equity Index Futures Contracts

Citibank
N.A.

Liabilities — Unrealized depreciation on futures contracts

FlexShares International Quality Dividend Index Fund

(72,903

)

Foreign Currency Contracts

Bank of
Montreal,
Bank of
New
York,
Citibank
N.A. and
Morgan
Stanley

Assets — Unrealized appreciation on forward foreign currency contracts

FlexShares International Quality Dividend Index Fund

35,535


FLEXSHARES SEMIANNUAL REPORT			271

Notes to the Financial Statements (cont.)

Derivatives by risk type

Counterparty

Statements of Assets
and Liabilities Location

Fund

Value

Foreign Currency Contracts

Bank of
New
York,
Citibank
N.A.,
Morgan
Stanley,
Societe
Generale
and The
Toronto-
Dominion
Bank

Liabilities — Unrealized depreciation on forward foreign currency contracts

FlexShares International Quality Dividend Index Fund

(26,242

)

Equity Index Futures Contracts

Citibank
N.A.

Assets — Unrealized appreciation on futures contracts

FlexShares International Quality Dividend Defensive Index Fund

35,272

Foreign Currency Contracts

Bank of
Montreal,
Bank of
New
York,
BNP
Paribas
S.A.,
Citibank
N.A.,
Goldman
Sachs &
Co.,
JPMorgan
Chase &
Co.,
Morgan
Stanley
and
Societe
Generale

Assets — Unrealized appreciation on forward foreign currency contracts

FlexShares International Quality Dividend Defensive Index Fund

8,545


272		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)

Derivatives by risk type

Counterparty

Statements of Assets
and Liabilities Location

Fund

Value

Foreign Currency Contracts

Bank of
New
York,
Citibank
N.A.,
JPMorgan
Chase &
Co.,
Morgan
Stanley,
Societe
Generale
and The
Toronto-
Dominion
Bank

Liabilities — Unrealized depreciation on forward foreign currency contracts

FlexShares International Quality Dividend Defensive Index Fund

(9,175

)

Equity Index Futures Contracts

Citibank
N.A.

Assets — Unrealized appreciation on futures contracts

FlexShares International Quality Dividend Dynamic Index Fund

15,663

Foreign Currency Contracts

Bank of
New
York,
Citibank
N.A.,
Goldman
Sachs &
Co.,
JPMorgan
Chase &
Co.,
Morgan
Stanley,
Societe
Generale
and The
Toronto-
Dominion
Bank

Assets — Unrealized appreciation on forward foreign currency contracts

FlexShares International Quality Dividend Dynamic Index Fund

8,647


FLEXSHARES SEMIANNUAL REPORT			273

Notes to the Financial Statements (cont.)

Derivatives by risk type

Counterparty

Statements of Assets
and Liabilities Location

Fund

Value

Foreign Currency Contracts

Bank of
Montreal,
Bank of
New
York,
Morgan
Stanley,
Societe
Generale
and The
Toronto-
Dominion
Bank

Liabilities — Unrealized depreciation on forward foreign currency contracts

FlexShares International Quality Dividend Dynamic Index Fund

(7,702

)

The Effect of Derivative Instruments on the Statements of Operations for the Period Ended April 30, 2016


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	$	632,535		$	89,473
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		(104,022	)		(324,897	)
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		59,936			41,314
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		(1,597	)		(15,688	)


274		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)


Derivatives by risk type	Location of Gain or (Loss) on Derivatives on the Statements of Operations	Fund	Realized Gain or (Loss) on Derivatives			Change in Unrealized Appreciation or (Depreciation) on Derivatives
Foreign Currency Contracts	Net realized gain (loss) on Foreign currency transactions, Net change in unrealized appreciation (depreciation) on Forward foreign currency contracts	FlexShares Morningstar Emerging Markets Factor Tilt Index Fund	$	21,360		$	7,597
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		(125,612	)		(47,328	)
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		(1,128,798	)		(217,456	)
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		1,558,691			42,379
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		(91,427	)		(224,965	)
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		(180,352	)		(367,821	)
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		56,183			(84,115	)


FLEXSHARES SEMIANNUAL REPORT			275

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 Global Quality Real Estate Index Fund	$	17,046		$	(68,550	)
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		(10,208	)		(13,485	)
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		170,261			(47,221	)
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		101,345			(89,788	)
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		35,668			(41,476	)
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		42,897			(145,680	)
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		(104,808	)		(166,335	)
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		(205,684	)		63,557


276		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)


Derivatives by risk type	Location of Gain or (Loss) on Derivatives on the Statements of Operations	Fund	Realized Gain or (Loss) on Derivatives			Change in Unrealized Appreciation or (Depreciation) on Derivatives
Foreign Currency Contracts	Net realized gain (loss) on Foreign currency transactions, Net change in unrealized appreciation (depreciation) on Forward foreign currency contracts	FlexShares International Quality Dividend Defensive Index Fund	$	29,095		$	(61,924	)
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		(44,714	)		28,738
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 Dynamic Index Fund		(10,092	)		(10,548	)

At April 30, 2016, 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		Average Notional Amount
FlexShares Morningstar US Market Factor Tilt Index Fund		—	$	—		111	$	108,546
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund		23		321,966		107		59,304
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund		7		49,466		59		41,920
FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund		13		219,877		—		—
FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund		29		883,953		—		—
FlexShares Morningstar Global Upstream Natural Resources Index Fund		22		854,989		254		82,955
FlexShares STOXX^® Global Broad Infrastructure Index Fund		26		393,321		74		78,961
FlexShares Global Quality Real Estate Index Fund		14		94,904		28		89,693
FlexShares Quality Dividend Index Fund		—		—		104		102,955
FlexShares Quality Dividend Defensive Index Fund		—		—		13		102,955
FlexShares Quality Dividend Dynamic Index Fund		—		—		4		102,955
FlexShares International Quality Dividend Index Fund		17		128,466		128		52,589
FlexShares International Quality Dividend Defensive Index Fund		29		20,394		16		70,228
FlexShares International Quality Dividend Dynamic Index Fund		20		27,210		6		69,370


FLEXSHARES SEMIANNUAL REPORT			277

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 October 31, 2015, 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.

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 Morningstar Global Upstream Natural Resources Index Fund, FlexShares STOXX Global 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 Credit-Scored US Corporate Bond Index Fund, and FlexShares Credit-Scored US Long Corporate Bond Index Fund may hold the securities of real estate investment trusts (“REITs”). Distributions from such investments may be comprised of return of capital, capital gains and income. The actual character of amounts received during the year is not known until after the REIT’s fiscal year end. The Fund records the character of distributions received from REITs during the year based on estimates available. The characterization of distributions received by the Fund may be subsequently revised based on information received from the REITs after their tax reporting periods concluded.

All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign markets in which a Fund invests. These foreign taxes, if any, are paid by the Funds and disclosed in the Statements of Operations. Foreign taxes payable, if any, are reflected in the Funds’ Statements of Assets and Liabilities.

Expenses directly attributable to a Fund are charged to that Fund, while expenses which are attributable to more than one Fund are allocated among the respective Funds based upon relative net assets or another reasonable basis.

4. Investment Advisory Fees

NTI serves as the Investment Adviser of the Funds pursuant to the Investment Advisory Agreement. The Investment Adviser is responsible for making investment decisions for


278		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)

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 fee payments under the Investment Advisory Agreement, interest expenses, brokerage commissions and other trading expenses, fees and expenses of the independent trustees and their independent legal counsel, taxes and other extraordinary costs such as litigation and other expenses not incurred in the ordinary course of business.

The 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		0.27	%
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund		0.42	%
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund		0.65	%
FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund		0.47	%
FlexShares Currency Hedged Morningstar Factor Tilt Index Fund		0.70	%
FlexShares US Quality Large Cap Index Fund		0.32	%
FlexShares Morningstar Global Upstream Natural Resources Index Fund		0.48	%
FlexShares STOXX^® Global Broad Infrastructure Index Fund		0.47	%
FlexShares Global Quality Real Estate Index Fund		0.45	%


Fund	Unitary Management Fee
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	%
FlexShares iBoxx 3-Year Target Duration TIPS Index Fund		0.20	%
FlexShares iBoxx 5-Year Target Duration TIPS Index Fund		0.20	%
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	%

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, 2017 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). 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.


FLEXSHARES SEMIANNUAL REPORT			279

Notes to the Financial Statements (cont.)

AFFE are expenses incurred indirectly by the Fund through its ownership of shares in other investment companies. Because AFFE are not direct expenses of the Fund, they are not reflected on the Fund’s financial statements.

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 April 30, 2016, 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.

As of the period ended April 30, 2016, JPMorgan Chase Bank, N.A. voluntarily reimbursed expenses of the FlexShares Disciplined Duration MBS Index Fund in the amount of $28,006. The reimbursed amount is stated in the Statements of Operations under the caption “Investment advisory fees reimbursed.”

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, 2017. 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 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


280		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)

institutions) in exchange for the deposit or delivery of a basket of assets (securities and/or cash), in large blocks known as Creation Units, each of which is comprised of a specified number of shares.

Retail investors may only purchase and sell fund shares on a national securities exchange through a broker-dealer and such transactions may be subject to customary commission rates imposed by the broker-dealer.

Authorized Participants may pay transaction fees to offset transfer and other transaction costs associated with the issuance and redemption of Creation Units. Transaction fees remaining in the Funds were as follows:


Fund	As of April 30, 2016		As of October 31, 2015
FlexShares Morningstar US Market Factor Tilt Index Fund	$	1,500	$	0
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund		40,000		20,000
FlexShares Morningstar Emerging Market Factor Tilt Index Fund		25,000		0
FlexShares US Quality Large Cap Index Fund		500		500
FlexShares Morningstar Global Upstream Natural Resources Index Fund		48,000		9,000
FlexShares STOXX^® Global Broad Infrastructure Index Fund		16,000		12,000
FlexShares Global Quality Real Estate Index Fund		6,000		12,000
FlexShares Quality Dividend Index Fund		25,750		5,500
FlexShares Quality Dividend Defensive Index Fund		6,750		0
FlexShares Quality Dividend Dynamic Index Fund		3,750		0
FlexShares International Quality Dividend Index Fund		20,000		15,000
FlexShares International Quality Dividend Dynamic Index Fund		10,000		15,000
FlexShares Disciplined Duration MBS Index Fund		400		800


Fund	As of April 30, 2016		As of October 31, 2015
FlexShares Credit-Scored US Corporate Bond Index Fund	$	1,000	$	1,000
FlexShares Credit-Scored US Long Corporate Bond Index Fund		1,000		500
FlexShares Ready Access Variable Income Fund		1,050		350

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-YearTarget Duration TIPS Index Fund and the FlexShares iBoxx 5-YearTarget Duration TIPS Index Fund do not charge creation unit transaction fees.

10. Investment Transactions

For the six month ended April 30, 2016, 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, 2016, were as follows:


Fund	Purchases		Sales
FlexShares Morningstar US Market Factor Tilt Index Fund	$	100,678,316	$	111,644,758
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund		109,951,426		104,504,676
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund		84,328,002		46,940,671
FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund		87,801		180,259
FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund		230,328		1,342,131


FLEXSHARES SEMIANNUAL REPORT			281

Notes to the Financial Statements (cont.)


Fund	Purchases		Sales
FlexShares US Quality Large Cap Index Fund	$	885,205	$	885,827
FlexShares Morningstar Global Upstream Natural Resources Index Fund		304,164,884		378,233,253
FlexShares STOXX^® Global Broad Infrastructure Index Fund		62,494,648		53,841,214
FlexShares Global Quality Real Estate Index Fund		43,083,667		40,814,950
FlexShares Real Assets Allocation Index Fund		71,395		28,752
FlexShares Quality Dividend Index Fund		343,171,441		345,312,848
FlexShares Quality Dividend Defensive Index Fund		74,189,588		73,511,616
FlexShares Quality Dividend Dynamic Index Fund		20,224,564		20,160,227
FlexShares International Quality Dividend Index Fund		125,736,544		131,102,243
FlexShares International Quality Dividend Defensive Index Fund		22,885,411		26,610,224
FlexShares International Quality Dividend Dynamic Index Fund		10,865,733		11,847,708
FlexShares iBoxx 3-Year Target Duration TIPS Index Fund		629,398,820		624,776,322
FlexShares iBoxx 5-Year Target Duration TIPS Index Fund		192,443,747		191,645,942
FlexShares Disciplined Duration MBS Index Fund		24,440,244		15,754,260
FlexShares Credit-Scored US Corporate Bond Index Fund*		16,210,701		6,234,063
FlexShares Credit-Scored US Long Corporate Bond Index Fund**		8,119,389		3,074,992
FlexShares Ready Access Variable Income Fund***		28,659,297		27,359,184

*	Include $828,860 in purchases and $826,688 in sales in U.S. Government Securities.

**	Include $402,416 in purchases and $399,202 in sales in U.S. Government Securities.

***	Include $3,988,164 in purchases and $4,890,849 in sales in U.S. Government Securities.

For the period ended April 30, 2016, the following funds engaged in purchases and/or sales of securities from an affiliated entity:


Fund	Purchases		Sales		Net Realized Gains (Losses)
FlexShares Morningstar US Market Factor Tilt Index Fund	$	199,334	$	—	$	—
FlexShares STOXX^® Global Broad Infrastructure Index Fund		—		175,998		(58,739	)
FlexShares Global Quality Real Estate Index Fund		14,313		—		—
FlexShares Quality Dividend Index Fund		—		23,336		102

11. In-Kind Transactions

During the six-month period ended April 30, 2016, the Funds received securities in exchange for subscriptions of shares (subscriptions-in-kind). For the six-month period ended April 30, 2016, 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	$	8,125,528
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund		50,879,581
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund		19,990,655
FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund		3,029,218
FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund		25,563,086
FlexShares US Quality Large Cap Index Fund		1,283,037
FlexShares Morningstar Global Upstream Natural Resources Index Fund		212,040,099
FlexShares STOXX^® Global Broad Infrastructure Index Fund		127,384,182


282		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)


Fund	Fair Value
FlexShares Global Quality Real Estate Index Fund	$	52,678,469
FlexShares Real Assets Allocation Index Fund		2,456,964
FlexShares Quality Dividend Index Fund		540,421,878
FlexShares Quality Dividend Defensive Index Fund		27,272,401
FlexShares International Quality Dividend Index Fund		15,944,257
FlexShares International Quality Dividend Dynamic Index Fund		14,189,140
FlexShares iBoxx 3-YearTarget Duration TIPS Index Fund		23,279,312
FlexShares iBoxx 5-Year Target Duration TIPS Index Fund		126,021,663

During the six-month period ended April 30, 2016, the FlexShares Morningstar US Market Factor Tilt Index Fund, FlexShares Morningstar Global Upstream Natural Resources 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, FlexShares iBoxx 5-Year Target Duration TIPS Index and FlexShares Ready Access Variable Income Fund 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 six month period ended April 30, 2016, 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	$	4,244,869	$	1,787,417
FlexShares Morningstar Global Upstream Natural Resources Index Fund		398,394,136		7,815,531
FlexShares Real Assets Allocation Index Fund		1,115,167		(133,957	)


Fund	Fair Value		Net Realized Gains (Losses)
FlexShares Quality Dividend Index Fund	$	24,626,329	$	3,247,468
FlexShares Quality Dividend Defensive Index Fund		13,260,146		1,818,088
FlexShares Quality Dividend Dynamic Index Fund		19,697,917		1,242,821
FlexShares International Quality Dividend Index Fund		62,712,801		594,122
FlexShares International Quality Dividend Defensive Index Fund		25,301,993		(1,432,948	)
FlexShares International Quality Dividend Dynamic Index Fund		19,047,184		(1,391,496	)
FlexShares iBoxx 3-Year Target Duration TIPS Index Fund		183,031,797		(516,868	)
FlexShares iBoxx 5-Year Target Duration TIPS Index Fund		53,733,932		(43,716	)
FlexShares Ready Access Variable Income Fund		3,295,514		(1,161	)

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. 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.


FLEXSHARES SEMIANNUAL REPORT			283

Fund Expenses (Unaudited)

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, 2016.

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, 2016.

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 04/30/16		Expenses Paid During the Period*		Annualized Expense Ratio During Period
FlexShares^® Morningstar US Market Factor Tilt Index Fund
Actual	$	1,000.00	$	1,003.10	$	1.34		0.27	%
Hypothetical	$	1,000.00	$	1,023.52	$	1.36		0.27	%
FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund
Actual	$	1,000.00	$	992.50	$	2.08		0.42	%
Hypothetical	$	1,000.00	$	1,022.77	$	2.11		0.42	%
FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund
Actual	$	1,000.00	$	1,001.00	$	3.23		0.65	%
Hypothetical	$	1,000.00	$	1,021.63	$	3.27		0.65	%


284		FLEXSHARES SEMIANNUAL REPORT

Fund Expenses (cont.)


	Beginning Account Value		Ending Account Value 04/30/16		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	$	936.10	$	0.23		0.05	%
Hypothetical	$	1,000.00	$	1,024.61	$	0.25		0.05	%
FlexShares^® Currency Hedged Morningstar EM Factor Tilt Index Fund^(a)
Actual	$	1,000.00	$	985.80	$	0.28		0.06	%
Hypothetical	$	1,000.00	$	1,024.57	$	0.30		0.06	%
FlexShares^® US Quality Large Cap Index Fund
Actual	$	1,000.00	$	976.30	$	1.57		0.32	%
Hypothetical	$	1,000.00	$	1,023.27	$	1.61		0.32	%
FlexShares^® Morningstar Global Upstream Natural Resources Index Fund
Actual	$	1,000.00	$	1,107.70	$	2.52		0.48	%
Hypothetical	$	1,000.00	$	1,022.48	$	2.41		0.48	%
FlexShares^® STOXX^® Global Broad Infrastructure Index Fund
Actual	$	1,000.00	$	1,033.50	$	2.38		0.47	%
Hypothetical	$	1,000.00	$	1,022.53	$	2.36		0.47	%
FlexShares^® Global Quality Real Estate Index Fund
Actual	$	1,000.00	$	1,033.60	$	2.28		0.45	%
Hypothetical	$	1,000.00	$	1,022.63	$	2.26		0.45	%
FlexShares^® Real Assets Allocation Index Fund^(b)
Actual	$	1,000.00	$	1,053.90	$	0.45		0.10	%
Hypothetical	$	1,000.00	$	1,024.37	$	0.50		0.10	%
FlexShares^® Quality Dividend Index Fund
Actual	$	1,000.00	$	1,022.40	$	1.86		0.37	%
Hypothetical	$	1,000.00	$	1,023.02	$	1.86		0.37	%
FlexShares^® Quality Dividend Defensive Index Fund
Actual	$	1,000.00	$	1,018.90	$	1.86		0.37	%
Hypothetical	$	1,000.00	$	1,023.02	$	1.86		0.37	%
FlexShares^® Quality Dividend Dynamic Index Fund
Actual	$	1,000.00	$	997.10	$	1.84		0.37	%
Hypothetical	$	1,000.00	$	1,023.02	$	1.86		0.37	%
FlexShares^® International Quality Dividend Index Fund
Actual	$	1,000.00	$	997.90	$	2.33		0.47	%
Hypothetical	$	1,000.00	$	1,022.53	$	2.36		0.47	%
FlexShares^® International Quality Dividend Defensive Index Fund
Actual	$	1,000.00	$	1,019.00	$	2.36		0.47	%
Hypothetical	$	1,000.00	$	1,022.53	$	2.36		0.47	%


FLEXSHARES SEMIANNUAL REPORT			285

Fund Expenses (cont.)


	Beginning Account Value		Ending Account Value 04/30/16		Expenses Paid During the Period*		Annualized Expense Ratio During Period
FlexShares^® International Quality Dividend Dynamic Index Fund
Actual	$	1,000.00	$	993.30	$	2.33		0.47	%
Hypothetical	$	1,000.00	$	1,022.53	$	2.36		0.47	%
FlexShares^® iBoxx 3-Year Target Duration TIPS Index Fund
Actual	$	1,000.00	$	1,014.40	$	1.00		0.20	%
Hypothetical	$	1,000.00	$	1,023.87	$	1.01		0.20	%
FlexShares^® iBoxx 5-Year Target Duration TIPS Index Fund
Actual	$	1,000.00	$	1,029.30	$	1.01		0.20	%
Hypothetical	$	1,000.00	$	1,023.87	$	1.01		0.20	%
FlexShares^® Disciplined Duration MBS Index Fund^(c)
Actual	$	1,000.00	$	1,015.80	$	—		—	%
Hypothetical	$	1,000.00	$	1,024.86	$	—		—	%
FlexShares^® Credit-Scored US Corporate Bond Index Fund
Actual	$	1,000.00	$	1,032.70	$	1.11		0.22	%
Hypothetical	$	1,000.00	$	1,023.77	$	1.11		0.22	%
FlexShares^® Credit-Scored US Long Corporate Bond Index Fund
Actual	$	1,000.00	$	1,082.80	$	1.14		0.22	%
Hypothetical	$	1,000.00	$	1,023.77	$	1.11		0.22	%
FlexShares^® Ready Access Variable Income Fund
Actual	$	1,000.00	$	1,006.00	$	1.25		0.25	%
Hypothetical	$	1,000.00	$	1,023.62	$	1.26		0.25	%

*	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)

The Fund commenced operations on November 9, 2015. Actual Expenses Paid During the Period are equal to the Fund’s annualized net expense ratio, multiplied by the average account value over the period, multiplied by 173 divided by 366 (to reflect the actual days in the period). Hypothetical Expenses Paid During the Period are equal to the Fund’s annualized net expense ratio, multiplied by the average account value over the period, multiplied by 182 divided by 366 (to reflect the one-half year period). Annualized net expense ratio and expenses paid during the period do not include fees and expenses of the Underlying Fund(s) in which the Fund invests.

(b)

The Fund commenced operations on November 23, 2015. Actual Expenses Paid During the Period are equal to the Fund’s annualized net expense ratio, multiplied by the average account value over the period, multiplied by 159 divided by 366 (to reflect the actual days in the period). Hypothetical Expenses Paid During the Period are equal to the Fund’s annualized net expense ratio, multiplied by the average account value over the period, multiplied by 182 divided by 366 (to reflect the one-half year period). Annualized net expense ratio and expenses paid during the period do not include fees and expenses of the Underlying Fund(s) in which the Fund invests.

(c)

The Fund’s expenses in the table above reflected voluntary reimbursement by JPMorgan Chase Bank, N.A. Without this reimbursement, the corresponding table above would have read as follows:

Beginning
Account
Value

Ending
Account
Value
04/30/16

Expenses Paid
During the
Period**

Annualized
Expense Ratio
During Period

FlexShares^® Disciplined Duration MBS Index Fund

Actual

1,000.00

1,015.80

1.00

0.20

Hypothetical

1,000.00

1,023.87

1.01

0.20

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).


286		FLEXSHARES SEMIANNUAL REPORT

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:

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.

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.

The following risks apply to each Fund as disclosed:

Concentration Risk

Each of the Index Funds, except the FlexShares iBoxx 3-Year Target Duration TIPS Index Fund, the FlexShares iBoxx 5-Year Target Duration TIPS Index Fund, and the FlexShares Disciplined Duration MBS Index Fund are 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. The Credit-Scored US Corporate Bond Index Fund and Credit-Scored US Long Corporate Bond Index Fund may be adversely impacted by events affecting the U.S. financials sector. The U.S. financials sector can be significantly affected by changes in interest rates, government regulation, the rate of corporate and consumer debt defaults, price competition, the availability and cost of capital funds and fallout from the housing and sub-prime mortgage crisis. This sector has experienced significant losses in the recent past, and the impact of more stringent capital requirements and of recent or future regulation on any individual financial company, or on the sector as a whole cannot be predicted.


FLEXSHARES SEMIANNUAL REPORT			287

Supplemental Information (cont.)

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, and the FlexShares Ready Access Variable Income 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 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 (which is also an Underlying Fund of the FlexShares Real Assets Allocation Index Fund) 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 Disciplined Duration MBS 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 is 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.

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


288		FLEXSHARES SEMIANNUAL REPORT

Supplemental Information (cont.)

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 subject to more abrupt or erratic market movements 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 investment in companies whose securities are believed to be undervalued, relative to their underlying profitability, may not appreciate in value as anticipated.

Global Natural Resource 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. 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.

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.


FLEXSHARES SEMIANNUAL REPORT			289

Supplemental Information (cont.)

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):

Interest Rate Risk

The Fund is 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.

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 to the FlexShares Currency Hedged Morningstar DM ex-US Factor Tilt Index Fund, FlexShares Currency Hedged Morningstar EM Factor Tilt Index Fund, and the FlexShares Real Assets Allocation Index 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.


290		FLEXSHARES SEMIANNUAL REPORT

Supplemental Information (cont.)

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 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 a 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.

Corporate Bond Risk

The FlexShares Credit-Scored US Corporate Bond Index Fund and 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.

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, and the FlexShares Ready Access Variable Income 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


FLEXSHARES SEMIANNUAL REPORT			291

Supplemental Information (cont.)

circumstances, the value of the obligation will decrease and the Fund will suffer from the inability to invest in higher yielding securities.

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 and the FlexShares Ready Access Variable Income Fund:

U.S. Government Securities Risk

The Fund is subject to the risk that the U.S. government will not provide financial support to its agencies, instrumentalities or sponsored enterprises if it is not obligated to do so by law. Many U.S. government securities that may be purchased by the Fund are not backed by the full faith and credit of the United States. It is possible that the issuers of such securities will not have the funds to meet their payment obligations in the future.

Mortgage Related and Other Asset-Backed Risks

The Fund is subject to the risks of investing in mortgage-related and other asset-backed securities, including Interest Rate/Maturity Risk, Debt Extension Risk and Prepayment (or Call) Risk.

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 Credit-Scored US Corporate Bond Index Fund and FlexShares Ready Access Variable Income Fund:

Financial Sector Risk

The Fund is subject to the risk that the Fund will be impacted by events affecting the U.S. and 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 competition, the availability and cost of capital funds and fallout from the housing and sub-prime mortgage crisis. 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.

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.


292		FLEXSHARES SEMIANNUAL REPORT

For More Information (Unaudited)

Portfolio Holdings

FlexShares^® Trust files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on 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.


FLEXSHARES SEMIANNUAL REPORT			293

LOGO

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 Index^SM, Morningstar^® Developed Markets ex-US Factor Tilt Index^SM, Morningstar^® Emerging Markets Factor Tilt Index^SM, Morningstar^® Developed Markets ex-US Factor Tilt Hedged Index^SM, Morningstar^® Emerging Markets Factor Tilt Hedged Index^SM, Morningstar^® Global Upstream Natural Resources Index^SM and 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^® Global Broad Infrastructure Index and the related trademarks for use in connection with the FlexShares^® STOXX^® Global Broad Infrastructure Index Fund. 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 Index^SM, Northern Trust Quality Dividend Index^SM, Northern Trust Quality Dividend Dynamic Index^SM, Northern Trust Quality Dividend Defensive Index^SM, Northern Trust International Quality Dividend Index^SM, Northern Trust Quality Dividend Dynamic Index^SM, Northern Trust International Quality Dividend Defensive Index^SM, Northern Trust Global Quality Real Estate Index^SM, and Northern Trust Credit-Scored US Corporate Bond Index^SM , Northern Trust Credit-Scored US Long Corporate Bond Index^SM, Northern Trust Real Assets Allocation Index^SM are service marks of NTI and have been licensed for use by FlexShares Trust. “BofA Merrill Lynch” and “The BofA Merrill Lynch Constrained Duration US Mortgage Backed Securities Index^SM” are trademarks of Merrill Lynch, Pierce, Fenner & Smith Incorporated or its affiliates and have been licensed for use by NTI.

FS00041-0616

Item 2. Code Of Ethics.

Not applicable for this reporting period.

Item 3. Audit Committee Financial Expert.

Not applicable for this reporting period.

Item 4. Principal Accountant Fees and Services.

Not applicable for this reporting period.

Item 5. Audit Committee of Listed Registrants.

Not applicable for this reporting period.

Item 6. Investments

(a)	Schedule I – Investments in Securities of Unaffiliated Issuers

The complete schedule of investments is included in the report to shareholders in Item 1 of this 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. Purchase 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. 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.

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/ Shundrawn A. Thomas
		Shundrawn A. Thomas
		President
		July 7, 2016

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/ Shundrawn A. Thomas
		Shundrawn A. Thomas
		President
		July 7, 2016

By:		/s/ Randal Rein
		Randal Rein
		Treasurer and Principal Financial Officer
		July 7, 2016