FlexShares Trust

N-CSRS 1 d923109dncsrs.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, 2015

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).

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FlexShares^® Trust

Semiannual Report

April 30, 2015

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

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^® Ready Access Variable Income Fund

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Table of Contents



Statements of Assets and Liabilities			2

Statements of Operations			7

Statements of Changes in Net Assets			11

Financial Highlights			20

Schedules of Investments			26
FlexShares^® Morningstar US Market Factor Tilt Index Fund			26
FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund			60
FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund			100
FlexShares^® Morningstar Global Upstream Natural Resources Index Fund			136
FlexShares^® STOXX^® Global Broad Infrastructure Index Fund			141
FlexShares^® Global Quality Real Estate Index Fund			146
FlexShares^® Quality Dividend Index Fund			151
FlexShares^® Quality Dividend Defensive Index Fund			156
FlexShares^® Quality Dividend Dynamic Index Fund			161
FlexShares^® International Quality Dividend Index Fund			166
FlexShares^® International Quality Dividend Defensive Index Fund			172
FlexShares^® International Quality Dividend Dynamic Index Fund			179
FlexShares^® iBoxx 3-Year Target Duration TIPS Index Fund			185
FlexShares^® iBoxx 5-Year Target Duration TIPS Index Fund			186
FlexShares^® Disciplined Duration MBS Index Fund			187
FlexShares^® Credit-Scored US Corporate Bond Index Fund			189
FlexShares^® Ready Access Variable Income Fund			194

Notes to the Financial Statements			200

Fund Expenses			231

Approval of Advisory Agreement			234

Supplemental Information			236

For More Information			241

LOGO

FlexShares^® Trust

Statements of Assets and Liabilities April 30, 2015 (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^® Morningstar Global Upstream Natural Resources Index Fund

ASSETS
Securities, at cost	$	602,655,287	$	534,979,800	$	219,257,534		$	2,815,330,958
Affiliate securities, at cost		345,225		—		—			—
Repurchase Agreements, at cost		—		—		—			—

Securities, at value		771,843,539		557,055,858		236,772,799			2,584,956,179
Affiliate securities, at value		448,044		—		—			—
Repurchase Agreements, at value		—		—		—			—
Cash		4,221,535		1,135,018		368,553			12,642,395
Cash segregated at broker*		236,591		940,350		349,164			1,759,493
Foreign cash†		—		2,539,566		1,592,536			18,498,416
Restricted cash**		—		—		—			6,907
Unrealized appreciation on forward foreign currency contracts		—		69,528		68,580			555,330
Receivables:
Dividends and interest		531,524		2,606,073		291,593			8,867,728
Capital shares issued		—		—		—			332
Investment adviser		26,230		17,622		7,741			110,215
Securities sold		20,629,803		—		31,445			—
Variation margin		—		20,374		58,729			1,077,329

Total Assets		797,937,266		564,384,389		239,541,140			2,628,474,324


LIABILITIES
Unrealized depreciation on forward foreign currency contracts		—		33,632		47,215			527,245
Payables:
Due to Custodian		—		142		—			—
Deferred compensation (Note 7)		21,283		12,890		6,199			97,581
Investment advisory fees		174,080		191,977		125,360			1,005,016
Trustee fees (Note 7)		4,947		4,732		1,542			12,634
Securities purchased		22,148,196		146,923		6,737			—
Deferred India capital gains tax		—		—		48,119			—
Due to Authorized Participant		—		—		—			6,907
Variation margin		30,403		—		—			—
Other		1,500		40,000		—			21,000

Total Liabilities		22,380,409		430,296		235,172			1,670,383

Net Assets	$	775,556,857	$	563,954,093	$	239,305,968		$	2,626,803,941


NET ASSETS CONSIST OF:
Paid-in capital	$	599,115,741	$	536,818,779	$	230,595,777		$	2,916,747,468
Undistributed (accumulated) net investment income (loss)		3,955,235		3,864,817		50,340			22,714,156
Undistributed (accumulated) net realized gain (loss) on investments and foreign currency transactions		3,142,755		1,040,739		(8,887,577	)		(83,833,985	)
Net unrealized appreciation (depreciation) on:
Investments		169,291,071		22,076,058		17,467,146			(230,374,779	)
Futures contracts		52,055		80,928		57,866			1,064,986
Forward foreign currency contracts and foreign currency translations		—		72,772		22,416			486,095

Net Assets	$	775,556,857	$	563,954,093	$	239,305,968		$	2,626,803,941


Shares Outstanding (unlimited number of shares authorized $0.0001 par value)		8,750,001		9,000,001		4,400,001			82,550,001
Net Asset Value	$	88.64	$	62.66	$	54.39		$	31.82

† Cost of foreign cash	$	—	$	2,470,703	$	1,587,003		$	17,927,414

*	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^® STOXX^® Global Broad Infrastructure Index Fund			FlexShares^® Global Quality Real Estate Index Fund			FlexShares^® Quality Dividend Index Fund		FlexShares^® Quality Dividend Defensive Index Fund

ASSETS
Securities, at cost	$	306,415,076		$	85,102,867		$	590,005,878	$	164,484,464
Affiliate securities, at cost		—			—			—		—
Repurchase Agreements, at cost		—			—			—		—

Securities, at value		326,096,741			90,602,295			652,677,634		181,319,155
Affiliate securities, at value		—			—			—		—
Repurchase Agreements, at value		—			—			—		—
Cash		994,892			509,036			3,080,367		759,015
Cash segregated at broker*		173,799			74,208			599,513		195,823
Foreign cash†		1,134,021			411,931			—		—
Restricted cash**		—			10,309			—		—
Unrealized appreciation on forward foreign currency contracts		102,988			26,915			—		—
Receivables:
Dividends and interest		946,113			218,902			761,596		199,579
Capital shares issued		—			—			—		—
Investment adviser		9,239			2,738			17,465		5,835
Securities sold		43,835			31			—		—
Variation margin		19,621			14,909			12,821		7,483

Total Assets		329,521,249			91,871,274			657,149,396		182,486,890


LIABILITIES
Unrealized depreciation on forward foreign currency contracts		51,480			25,118			—		—
Payables:
Due to Custodian		—			—			—		—
Deferred compensation (Note 7)		3,824			827			11,367		2,290
Investment advisory fees		124,025			32,896			200,270		55,636
Trustee fees (Note 7)		5,415			1,911			6,098		3,545
Securities purchased		43,615			—			—		—
Deferred India capital gains tax		—			—			—		—
Due to Authorized Participant		—			10,309			—		—
Variation margin		—			—			—		—
Other		8,000			6,000			5,500		2,250

Total Liabilities		236,359			77,061			223,235		63,721

Net Assets	$	329,284,890		$	91,794,213		$	656,926,161	$	182,423,169


NET ASSETS CONSIST OF:
Paid-in capital	$	310,914,280		$	85,934,612		$	578,686,706	$	163,950,383
Undistributed (accumulated) net investment income (loss)		1,033,347			353,349			1,591,043		395,537
Undistributed (accumulated) net realized gain (loss) on investments and foreign currency transactions		(2,433,640	)		(21,477	)		13,914,694		1,223,168
Net unrealized appreciation (depreciation) on:
Investments		19,681,665			5,499,428			62,671,756		16,834,691
Futures contracts		34,448			17,594			61,962		19,390
Forward foreign currency contracts and foreign currency translations		54,790			10,707			—		—

Net Assets	$	329,284,890		$	91,794,213		$	656,926,161	$	182,423,169


Shares Outstanding (unlimited number of shares authorized $0.0001 par value)		7,100,001			1,600,001			17,850,001		5,000,001
Net Asset Value	$	46.38		$	57.37		$	36.80	$	36.48

† Cost of foreign cash	$	1,123,370		$	402,063		$	—	$	—

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

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

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			3

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	$	93,476,566		$	368,296,521		$	101,128,728		$	69,836,175
Affiliate securities, at cost		—			—			—			—
Repurchase Agreements, at cost		—			—			—			—

Securities, at value		103,147,457			374,361,831			103,740,519			72,600,719
Affiliate securities, at value		—			—			—			—
Repurchase Agreements, at value		—			—			—			—
Cash		828,225			35,201			175,114			139,385
Cash segregated at broker*		101,325			360,099			75,967			32,425
Foreign cash†		—			2,497,423			1,063,139			279,836
Restricted cash**		—			—			—			—
Unrealized appreciation on forward foreign currency contracts		—			7,093			207,040			11,497
Receivables:
Dividends and interest		110,131			1,490,703			437,762			297,070
Capital shares issued		—			2,467			—			—
Investment adviser		3,747			11,970			2,643			3,481
Securities sold		12,205			—			23,699			—
Variation margin		8,288			34,380			—			—

Total Assets		104,211,378			378,801,167			105,725,883			73,364,413


LIABILITIES
Unrealized depreciation on forward foreign currency contracts		—			10,580			127,039			20,237
Payables:
Due to Custodian		—			—			23,699			—
Deferred compensation (Note 7)		1,561			4,907			1,371			775
Investment advisory fees		31,906			142,576			45,538			27,830
Trustee fees (Note 7)		2,186			7,063			1,272			2,706
Securities purchased		—			—			—			—
Deferred India capital gains tax		—			—			—			—
Due to Authorized Participant		—			—			—			—
Variation margin		—			—			15,226			4,944
Other		750			35,000			10,000			—

Total Liabilities		36,403			200,126			224,145			56,492

Net Assets	$	104,174,975		$	378,601,041		$	105,501,738		$	73,307,921


NET ASSETS CONSIST OF:
Paid-in capital	$	94,965,172		$	380,807,637		$	104,268,576		$	73,339,460
Undistributed (accumulated) net investment income (loss)		258,692			2,833,058			939,273			554,739
Undistributed (accumulated) net realized gain (loss) on investments and foreign currency transactions		(736,579	)		(11,292,076	)		(2,395,493	)		(3,343,878	)
Net unrealized appreciation (depreciation) on:
Investments		9,670,891			6,065,310			2,611,791			2,764,544
Futures contracts		16,799			131,818			(15,531	)		(5,042	)
Forward foreign currency contracts and foreign currency translations		—			55,294			93,122			(1,902	)

Net Assets	$	104,174,975		$	378,601,041		$	105,501,738		$	73,307,921


Shares Outstanding (unlimited number of shares authorized $0.0001 par value)		2,850,001			14,300,001			4,100,001			2,700,001
Net Asset Value	$	36.55		$	26.48		$	25.73		$	27.15

† Cost of foreign cash	$	—		$	2,436,437		$	1,053,124		$	273,347

*	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^® 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	$	2,142,085,138		$	430,978,999		$	16,878,158		$	4,972,460
Affiliate securities, at cost		—			—			—			—
Repurchase Agreements, at cost		—			—			—			—

Securities, at value		2,140,801,106			434,122,039			16,970,716			5,028,827
Affiliate securities, at value		—			—			—			—
Repurchase Agreements, at value		—			—			—			—
Cash		150,948			45,438			2,523,710			8,961
Cash segregated at broker*		—			—			—			—
Foreign cash†		—			—			—			—
Restricted cash**		—			—			—			—
Unrealized appreciation on forward foreign currency contracts		—			—			—			—
Receivables:
Dividends and interest		4,643,981			1,006,804			48,999			42,026
Capital shares issued		1,228,602			—			—			—
Investment adviser		87,981			24,970			633			350
Securities sold		—			—			—			182,970
Variation margin		—			—			—			—

Total Assets		2,146,912,618			435,199,251			19,544,058			5,263,134


LIABILITIES
Unrealized depreciation on forward foreign currency contracts		—			—			—			—
Payables:
Due to Custodian		—			—			—			—
Deferred compensation (Note 7)		76,773			22,950			102			34
Investment advisory fees		353,085			71,286			2,767			923
Trustee fees (Note 7)		11,208			2,020			531			316
Securities purchased		1,233,592			—			1,881,466			182,789
Deferred India capital gains tax		—			—			—			—
Due to Authorized Participant		—			—			—			—
Variation margin		—			—			—			—
Other		—			—			1,200			—

Total Liabilities		1,674,658			96,256			1,886,066			184,062

Net Assets	$	2,145,237,960		$	435,102,995		$	17,657,992		$	5,079,072


NET ASSETS CONSIST OF:
Paid-in capital	$	2,199,672,352		$	442,742,013		$	17,568,048		$	5,000,050
Undistributed (accumulated) net investment income (loss)		(18,549,233	)		(2,164,888	)		(28,758	)		9,576
Undistributed (accumulated) net realized gain (loss) on investments and foreign currency transactions		(34,601,127	)		(8,617,170	)		26,144			13,079
Net unrealized appreciation (depreciation) on:
Investments		(1,284,032	)		3,143,040			92,558			56,367
Futures contracts		—			—			—			—
Forward foreign currency contracts and foreign currency translations		—			—			—			—

Net Assets	$	2,145,237,960		$	435,102,995		$	17,657,992		$	5,079,072


Shares Outstanding (unlimited number of shares authorized $0.0001 par value)		87,304,000			17,400,001			700,001			100,001
Net Asset Value	$	24.57		$	25.01		$	25.23		$	50.79

† 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			5

Statements of Assets and Liabilities (cont.)


	FlexShares^® Ready Access Variable Income Fund

ASSETS
Securities, at cost	$	94,169,773
Affiliate securities, at cost		—
Repurchase Agreements, at cost		5,300,000

Securities, at value		94,367,465
Affiliate securities, at value		—
Repurchase Agreements, at value		5,300,000
Cash		40,271
Cash segregated at broker*		—
Foreign cash†		—
Restricted cash**		—
Unrealized appreciation on forward foreign currency contracts		—
Receivables:
Dividends and interest		292,495
Capital shares issued		—
Investment adviser		3,042
Securities sold		2,004,712
Variation margin		—

Total Assets		102,007,985


LIABILITIES
Unrealized depreciation on forward foreign currency contracts		—
Payables:
Due to Custodian		—
Deferred compensation (Note 7)		1,750
Investment advisory fees		20,957
Trustee fees (Note 7)		1,292
Securities purchased		—
Deferred India capital gains tax		—
Due to Authorized Participant		—
Variation margin		—
Other		350

Total Liabilities		24,349

Net Assets	$	101,983,636


NET ASSETS CONSIST OF:
Paid-in capital	$	101,693,554
Undistributed (accumulated) net investment income (loss)		48,724
Undistributed (accumulated) net realized gain (loss) on investments and foreign currency transactions		43,666
Net unrealized appreciation (depreciation) on:
Investments		197,692
Futures contracts		—
Forward foreign currency contracts and foreign currency translations		—

Net Assets	$	101,983,636

Shares Outstanding (unlimited number of shares authorized $0.0001 par value)		1,350,001
Net Asset Value	$	75.54

† 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

FlexShares^® Trust

Statements of Operations

For the six months ended April 30, 2015 (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^® Morningstar Global Upstream Natural Resources Index Fund

INVESTMENT INCOME
Dividend income	$	7,783,287		$	8,717,878		$	1,889,658		$	41,554,568
Dividend income received from affiliate		4,019			—			—			—
Interest income		—			—			6			—
Foreign withholding tax on dividends		(1,491	)		(653,445	)		(163,868	)		(2,079,254	)
Foreign withholding tax on interest		—			—			—			—

Total Investment Income		7,785,815			8,064,433			1,725,796			39,475,314


EXPENSES
Deferred compensation (Note 7)		1,002			752			322			3,746
Investment advisory fees		1,022,876			1,155,527			750,248			6,090,315
Trustee fees (Note 7)		23,203			17,171			8,049			82,431

Total Gross Expenses Before Fees Reimbursed		1,047,081			1,173,450			758,619			6,176,492


Less:
Deferred compensation reimbursed (Note 7)		(1,002	)		(752	)		(322	)		(3,746	)
Trustee fees reimbursed (Note 7)		(23,203	)		(17,171	)		(8,049	)		(82,431	)

Total Net Expenses		1,022,876			1,155,527			750,248			6,090,315

Net Investment Income (Loss)		6,762,939			6,908,906			975,548			33,384,999


NET REALIZED GAIN (LOSS) ON:
Investments in Affiliated Securities		1,143			—			—			—
Investments in securities		2,601,242			(7,786,998	)		(6,243,351	)⁽¹⁾		(84,729,725	)
In-kind redemptions of investments		1,926,208			15,213,687			1,662,566			31,186,686
Futures contracts		755,552			708,050			182,927			1,421,518
Foreign currency transactions		—			(654,920	)		(143,131	)		(1,735,883	)

Net Realized Gain (Loss)		5,284,145			7,479,819			(4,540,989	)		(53,857,404	)


NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON:
Investments in securities		19,539,633	⁽²⁾		17,853,044			13,804,590	⁽³⁾		(34,546,809	)
Futures contracts		(142,980	)		94,016			33,756			1,333,932
Forward foreign currency contracts		—			102,047			38,221			78,339
Translation of other assets and liabilities denominated in foreign currencies		—			158,251			19,302			682,628

Net Change in Unrealized Appreciation (Depreciation)		19,396,653			18,207,358			13,895,869			(32,451,910	)

Net Realized and Unrealized Gain (Loss)		24,680,798			25,687,177			9,354,880			(86,309,314	)

Net Increase (Decrease) in Net Assets Resulting from Operations	$	31,443,737		$	32,596,083		$	10,330,428		$	(52,924,315	)

⁽¹⁾

Net of India capital gains tax of $102,769.

⁽²⁾

Includes $41,065 change in unrealized appreciation on investments in affiliates.

⁽³⁾

Net of deferred India capital gains tax of $223,062.

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			7

Statements of Operations (cont.)


	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

INVESTMENT INCOME
Dividend income	$	3,672,882		$	1,318,344		$	10,954,386		$	2,623,166
Dividend income received from affiliate		—			—			—			—
Interest income		—			121			—			—
Foreign withholding tax on dividends		(132,274	)		(30,288	)		—			—
Foreign withholding tax on interest		—			—			—			—

Total Investment Income		3,540,608			1,288,177			10,954,386			2,623,166


EXPENSES
Deferred compensation (Note 7)		355			91			866			197
Investment advisory fees		661,578			167,661			1,218,210			311,086
Trustee fees (Note 7)		9,016			3,142			20,725			6,286

Total Gross Expenses Before Fees Reimbursed		670,949 .00			170,894.00			1,239,801.00			317,569.00


Less:
Deferred compensation reimbursed (Note 7)		(355	)		(91	)		(866	)		(197	)
Trustee fees reimbursed (Note 7)		(9,016	)		(3,142	)		(20,725	)		(6,286	)

Total Net Expenses		661,578			167,661			1,218,210			311,086

Net Investment Income (Loss)		2,879,030			1,120,516			9,736,176			2,312,080


NET REALIZED GAIN (LOSS) ON:
Investments in Affiliated Securities		—			—			—			—
Investments in securities		(1,981,448	)		3,279			(1,827,704	)		(982,972	)
In-kind redemptions of investments		—			—			15,481,091			2,192,770
Futures contracts		344,141			89,877			535,620			253,711
Foreign currency transactions		(233,416	)		(8,321	)		—			—

Net Realized Gain (Loss)		(1,870,723	)		84,835			14,189,007			1,463,509


NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON:
Investments in securities		6,135,287			2,172,606			4,553,789			5,045,097
Futures contracts		22,343			(5,331	)		(96,190	)		(88,386	)
Forward foreign currency contracts		106,124			(799	)		—			—
Translation of other assets and liabilities denominated in foreign currencies		17,392			12,111			—			—

Net Change in Unrealized Appreciation (Depreciation)		6,281,146			2,178,587			4,457,599			4,956,711

Net Realized and Unrealized Gain (Loss)		4,410,423			2,263,422			18,646,606			6,420,220

Net Increase (Decrease) in Net Assets Resulting from Operations	$	7,289,453		$	3,383,938		$	28,382,782		$	8,732,300

See Accompanying Notes to the Financial Statements.


8		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	$	1,652,072		$	6,967,163		$	2,172,748		$	1,453,861
Dividend income received from affiliate		—			—			—			—
Interest income		—			—			—			—
Foreign withholding tax on dividends		—			(536,799	)		(186,119	)		(105,007	)
Foreign withholding tax on interest		—			—			—			—

Total Investment Income		1,652,072			6,430,364			1,986,629			1,348,854


EXPENSES
Deferred compensation (Note 7)		132			450			119			135
Investment advisory fees		190,083			794,313			256,349			181,674
Trustee fees (Note 7)		4,443			10,375			4,204			3,226

Total Gross Expenses Before Fees Reimbursed		194,658			805,138			260,672			185,035


Less:
Deferred compensation reimbursed (Note 7)		(132	)		(450	)		(119	)		(135	)
Trustee fees reimbursed (Note 7)		(4,443	)		(10,375	)		(4,204	)		(3,226	)

Total Net Expenses		190,083			794,313			256,349			181,674

Net Investment Income (Loss)		1,461,989			5,636,051			1,730,280			1,167,180


NET REALIZED GAIN (LOSS) ON:
Investments in Affiliated Securities		—			—			—			—
Investments in securities		(1,023,624	)		(10,653,613	)		(3,817,066	)		(2,434,334	)
In-kind redemptions of investments		392,247			1,474,090			1,966,800			(708,502	)
Futures contracts		67,895			(379,579	)		(11,584	)		(22,647	)
Foreign currency transactions		—			(453,757	)		(185,957	)		(30,341	)

Net Realized Gain (Loss)		(563,482	)		(10,012,859	)		(2,047,807	)		(3,195,824	)


NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON:
Investments in securities		2,387,208			12,574,304			4,345,066			4,737,217
Futures contracts		2,932			121,790			(49,108	)		(37,270	)
Forward foreign currency contracts		—			7,471			171,111			(8,740	)
Translation of other assets and liabilities denominated in foreign currencies		—			88,206			20,251			14,135

Net Change in Unrealized Appreciation (Depreciation)		2,390,140			12,791,771			4,487,320			4,705,342

Net Realized and Unrealized Gain (Loss)		1,826,658			2,778,912			2,439,513			1,509,518

Net Increase (Decrease) in Net Assets Resulting from Operations	$	3,288,647		$	8,414,963		$	4,169,793		$	2,676,698

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			9

Statements of Operations (cont.)


										FlexShares^® Credit-Scored US Corporate Bond 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			November 12, 2014* through April 30, 2015			FlexShares^® Ready Access Variable Income Fund

INVESTMENT INCOME
Dividend income	$	—		$	—		$	—		$	—		$	—
Dividend income received from affiliate		—			—			—			—			—
Interest income		(13,935,434	)		(1,652,367	)		104,034			58,429			364,258
Foreign withholding tax on dividends		—			—			—			—			—
Foreign withholding tax on interest		—			—			—			—			—

Total Investment Income		(13,935,434	)		(1,652,367	)		104,034			58,429			364,258


EXPENSES
Deferred compensation (Note 7)		2,883			445			10			4			106
Investment advisory fees		2,148,423			387,375			11,123			5,150			115,646
Trustee fees (Note 7)		50,854			29,036			1,350			1,151			4,189

Total Gross Expenses Before Fees Reimbursed		2,202,160.00			416,856.00			12,483.00			6,305.00			119,941.00


Less:
Deferred compensation reimbursed (Note 7)		(2,883	)		(445	)		(10	)		(4	)		(106	)
Trustee fees reimbursed (Note 7)		(50,854	)		(29,036	)		(1,350	)		(1,151	)		(4,189	)

Total Net Expenses		2,148,423			387,375			11,123			5,150			115,646

Net Investment Income (Loss)		(16,083,857	)		(2,039,742	)		92,911			53,279			248,612


NET REALIZED GAIN (LOSS) ON:
Investments in Affiliated Securities		—			—			—			—			—
Investments in securities		(7,321,077	)		(444,952	)		26,144			13,079			43,999
In-kind redemptions of investments		(2,289,725	)		(98,537	)		—			—			—
Futures contracts		—			—			—			—			—
Foreign currency transactions		—			—			—			—			—

Net Realized Gain (Loss)		(9,610,802	)		(543,489	)		26,144			13,079			43,999


NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON:
Investments in securities		12,331,963			6,563,203			77,989			56,367			42,144
Futures contracts		—			—			—			—			—
Forward foreign currency contracts		—			—			—			—			—
Translation of other assets and liabilities denominated in foreign currencies		—			—			—			—			—

Net Change in Unrealized Appreciation (Depreciation)		12,331,963			6,563,203			77,989			56,367			42,144

Net Realized and Unrealized Gain (Loss)		2,721,161			6,019,714			104,133			69,446			86,143

Net Increase (Decrease) in Net Assets Resulting from Operations	$	(13,362,696	)	$	3,979,972		$	197,044		$	122,725		$	334,755

*	Commencement of investment operations.

See Accompanying Notes to the Financial Statements.


10		FLEXSHARES SEMIANNUAL REPORT

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, 2015 (Unaudited)			Year Ended October 31, 2014			Six Months Ended April 30, 2015 (Unaudited)			Year Ended October 31, 2014

OPERATIONS
Net investment income (loss)	$	6,762,939		$	8,819,844		$	6,908,906		$	15,372,801
Net realized gain (loss)		5,284,145			(1,133,000	)		7,479,819			(5,498,324	)
Net change in unrealized appreciation (depreciation)		19,396,653			69,374,426			18,207,358			(21,520,699	)


Net Increase (Decrease) in Net Assets
Resulting from Operations		31,443,737			77,061,270			32,596,083			(11,646,222	)


DISTRIBUTIONS TO SHAREHOLDERS
Net investment income		(10,104,239	)		(5,137,367	)		(16,879,469	)		(4,185,751	)
Net realized gain		—			—			—			—
Tax return of capital		—			—			—			—

Total distributions		(10,104,239	)		(5,137,367	)		(16,879,469	)		(4,185,751	)


CAPITAL TRANSACTIONS⁽¹⁾
Proceeds from shares issued		17,343,851			221,443,354			48,190,221			349,980,534
Cost of shares redeemed		(4,386,976	)		—			(143,845,995	)		—

Net Increase (Decrease) from Capital Transactions		12,956,875			221,443,354			(95,655,774	)		349,980,534

Total Increase (Decrease) in Net Assets		34,296,373			293,367,257			(79,939,160	)		334,148,561


NET ASSETS
Beginning of Period	$	741,260,484		$	447,893,227		$	643,893,253		$	309,744,692

End of Period	$	775,556,857		$	741,260,484		$	563,954,093		$	643,893,253

Undistributed (accumulated) net investment income (loss) included in end of period net assets	$	3,955,235		$	7,296,535		$	3,864,817		$	13,835,380


SHARE TRANSACTIONS
Beginning of period		8,600,001			5,850,001			10,600,001			5,000,001
Shares issued		—			—			—			2,400,000
Shares issued in-kind		200,000			2,750,000			800,000			3,200,000
Shares redeemed		—			—			—			—
Shares redeemed in-kind		(50,000	)		—			(2,400,000	)		—

Shares Outstanding, End of Period		8,750,001			8,600,001			9,000,001			10,600,001

⁽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.


FLEXSHARES SEMIANNUAL REPORT			11

Statements of Changes in Net Assets (cont.)


	FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund						FlexShares^® Morningstar Global Upstream Natural Resources Index Fund
	Six Months Ended April 30, 2015 (Unaudited)			Year Ended October 31, 2014			Six Months Ended April 30, 2015 (Unaudited)			Year Ended October 31, 2014

OPERATIONS
Net investment income (loss)	$	975,548		$	4,477,656		$	33,384,999		$	65,998,775
Net realized gain (loss)		(4,540,989	)		(2,471,226	)		(53,857,404	)		(8,479,550	)
Net change in unrealized appreciation (depreciation)		13,895,869			1,026,577			(32,451,910	)		(142,566,948	)


Net Increase (Decrease) in Net Assets
Resulting from Operations		10,330,428			3,033,007			(52,924,315	)		(85,047,723	)


DISTRIBUTIONS TO SHAREHOLDERS
Net investment income		(4,902,676	)		(1,505,217	)		(68,313,771	)		(54,468,059	)
Net realized gain		—			—			—			—
Tax return of capital		—			—			—			—

Total distributions		(4,902,676	)		(1,505,217	)		(68,313,771	)		(54,468,059	)


CAPITAL TRANSACTIONS⁽¹⁾
Proceeds from shares issued		—			98,193,500			281,758,667			325,868,149
Cost of shares redeemed		(24,602,410	)		—			(408,554,154	)		(76,050,178	)

Net Increase (Decrease) from Capital Transactions		(24,602,410	)		98,193,500			(126,795,487	)		249,817,971

Total Increase (Decrease) in Net Assets		(19,174,658	)		99,721,290			(248,033,573	)		110,302,189


NET ASSETS
Beginning of Period	$	258,480,626		$	158,759,336		$	2,874,837,514		$	2,764,535,325

End of Period	$	239,305,968		$	258,480,626		$	2,626,803,941		$	2,874,837,514

Undistributed (accumulated) net investment income (loss) included in end of period net assets	$	50,340		$	3,977,468		$	22,714,156		$	57,642,928


SHARE TRANSACTIONS
Beginning of period		4,900,001			3,000,001			86,650,001			79,650,001
Shares issued		—			1,200,000			—			100,000
Shares issued in-kind		—			700,000			9,000,000			9,150,000
Shares redeemed		—			—			—			—
Shares redeemed in-kind		(500,000	)		—			(13,100,000	)		(2,250,000	)

Shares Outstanding, End of Period		4,400,001			4,900,001			82,550,001			86,650,001

⁽¹⁾

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

See Accompanying Notes to the Financial Statements.


12		FLEXSHARES SEMIANNUAL REPORT

Statements of Changes in Net Assets (cont.)


	FlexShares^® STOXX^® Global Broad Infrastructure Index Fund						FlexShares^® Global Quality Real Estate Index Fund
	Six Months Ended April 30, 2015 (Unaudited)			Year Ended October 31, 2014			Six Months Ended April 30, 2015 (Unaudited)			November 5, 2013* through October 31, 2014

OPERATIONS
Net investment income (loss)	$	2,879,030		$	5,051,271		$	1,120,516		$	659,052
Net realized gain (loss)		(1,870,723	)		(665,902	)		84,835			(90,876	)
Net change in unrealized appreciation (depreciation)		6,281,146			13,331,185			2,178,587			3,349,142


Net Increase (Decrease) in Net Assets
Resulting from Operations		7,289,453			17,716,554			3,383,938			3,917,318


DISTRIBUTIONS TO SHAREHOLDERS
Net investment income		(2,366,523	)		(4,427,436	)		(977,467	)		(464,407	)
Net realized gain		—			—			—			—
Tax return of capital		—			—			—			—

Total distributions		(2,366,523	)		(4,427,436	)		(977,467	)		(464,407	)


CAPITAL TRANSACTIONS⁽¹⁾
Proceeds from shares issued		83,698,231			223,212,079			31,384,603			49,550,178
Cost of shares redeemed		—			—			—			—

Net Increase from Capital Transactions		83,698,231			223,212,079			31,384,603			49,550,178

Total Increase (Decrease) in Net Assets		88,621,161			236,501,197			33,791,074			53,003,089


NET ASSETS
Beginning of Period	$	240,663,729		$	4,162,532		$	58,003,139		$	5,000,050	⁽²⁾

End of Period	$	329,284,890		$	240,663,729		$	91,794,213		$	58,003,139

Undistributed (accumulated) net investment income (loss) included in end of period net assets	$	1,033,347		$	520,840		$	353,349		$	210,300


SHARE TRANSACTIONS
Beginning of period		5,250,001			100,001			1,050,001			100,001	⁽²⁾
Shares issued		—			1,200,000			—			50,000
Shares issued in-kind		1,850,000			3,950,000			550,000			900,000
Shares redeemed		—			—			—			—
Shares redeemed in-kind		—			—			—			—

Shares Outstanding, End of Period		7,100,001			5,250,001			1,600,001			1,050,001

*	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			13

Statements of Changes in Net Assets (cont.)


	FlexShares^® Quality Dividend Index Fund						FlexShares^® Quality Dividend Defensive Index Fund
	Six Months Ended April 30, 2015 (Unaudited)			Year Ended October 31, 2014			Six Months Ended April 30, 2015 (Unaudited)			Year Ended October 31, 2014

OPERATIONS
Net investment income (loss)	$	9,736,176		$	12,918,700		$	2,312,080		$	1,821,756
Net realized gain (loss)		14,189,007			7,547,300			1,463,509			(168,571	)
Net change in unrealized appreciation (depreciation)		4,457,599			41,275,178			4,956,711			8,785,877


Net Increase (Decrease) in Net Assets
Resulting from Operations		28,382,782			61,741,178			8,732,300			10,439,062


DISTRIBUTIONS TO SHAREHOLDERS
Net investment income		(8,971,079	)		(12,965,734	)		(2,088,071	)		(1,852,047	)
Net realized gain		—			—			—			—
Tax return of capital		—			—			—			—

Total distributions		(8,971,079	)		(12,965,734	)		(2,088,071	)		(1,852,047	)


CAPITAL TRANSACTIONS⁽¹⁾
Proceeds from shares issued		141,607,669			292,690,060			64,064,573			69,891,485
Cost of shares redeemed		(90,759,791	)		(37,729,053	)		(10,747,604	)		—

Net Increase from Capital Transactions		50,847,878			254,961,007			53,316,969			69,891,485

Total Increase (Decrease) in Net Assets		70,259,581			303,736,451			59,961,198			78,478,500


NET ASSETS
Beginning of Period	$	586,666,580		$	282,930,129		$	122,461,971		$	43,983,471

End of Period	$	656,926,161		$	586,666,580		$	182,423,169		$	122,461,971

Undistributed (accumulated) net investment income (loss) included in end of period net assets	$	1,591,043		$	825,946		$	395,537		$	171,528


SHARE TRANSACTIONS
Beginning of period		16,400,001			8,800,001			3,500,001			1,400,001
Shares issued		—			—			—			—
Shares issued in-kind		3,900,000			8,700,000			1,800,000			2,100,000
Shares redeemed		—			—			—			—
Shares redeemed in-kind		(2,450,000	)		(1,100,000	)		(300,000	)		—

Shares Outstanding, End of Period		17,850,001			16,400,001			5,000,001			3,500,001

⁽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.


14		FLEXSHARES SEMIANNUAL REPORT

Statements of Changes in Net Assets (cont.)


	FlexShares^® Quality Dividend Dynamic Index Fund						FlexShares^® International Quality Dividend Index Fund
	Six Months Ended April 30, 2015 (Unaudited)			Year Ended October 31, 2014			Six Months Ended April 30, 2015 (Unaudited)			Year Ended October 31, 2014

OPERATIONS
Net investment income (loss)	$	1,461,989		$	1,544,401		$	5,636,051		$	7,850,467
Net realized gain (loss)		(563,482	)		(108,699	)		(10,012,859	)		(1,130,268	)
Net change in unrealized appreciation (depreciation)		2,390,140			5,994,736			12,791,771			(10,654,790	)


Net Increase (Decrease) in Net Assets
Resulting from Operations		3,288,647			7,430,438			8,414,963			(3,934,591	)


DISTRIBUTIONS TO SHAREHOLDERS
Net investment income		(1,390,832	)		(1,419,125	)		(3,554,435	)		(7,109,283	)
Net realized gain		—			—			—			—
Tax return of capital		—			—			—			—

Total distributions		(1,390,832	)		(1,419,125	)		(3,554,435	)		(7,109,283	)


CAPITAL TRANSACTIONS⁽¹⁾
Proceeds from shares issued		10,932,297			74,314,467			68,773,404			264,919,148
Cost of shares redeemed		(1,805,865	)		—			(24,518,205	)		—

Net Increase from Capital Transactions		9,126,432			74,314,467			44,255,199			264,919,148

Total Increase (Decrease) in Net Assets		11,024,247			80,325,780			49,115,727			253,875,274


NET ASSETS
Beginning of Period	$	93,150,728		$	12,824,948		$	329,485,314		$	75,610,040

End of Period	$	104,174,975		$	93,150,728		$	378,601,041		$	329,485,314

Undistributed (accumulated) net investment income (loss) included in end of period net assets	$	258,692		$	187,535		$	2,833,058		$	751,442


SHARE TRANSACTIONS
Beginning of period		2,600,001			400,001			12,600,001			2,800,001
Shares issued		—			—			—			—
Shares issued in-kind		300,000			2,200,000			2,700,000			9,800,000
Shares redeemed		—			—			—			—
Shares redeemed in-kind		(50,000	)		—			(1,000,000	)		—

Shares Outstanding, End of Period		2,850,001			2,600,001			14,300,001			12,600,001

⁽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.


FLEXSHARES SEMIANNUAL REPORT			15

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, 2015 (Unaudited)			Year Ended October 31, 2014			Six Months Ended April 30, 2015 (Unaudited)			Year Ended October 31, 2014

OPERATIONS
Net investment income (loss)	$	1,730,280		$	1,731,390		$	1,167,180		$	851,755
Net realized gain (loss)		(2,047,807	)		(348,829	)		(3,195,824	)		(142,413	)
Net change in unrealized appreciation (depreciation)		4,487,320			(2,635,094	)		4,705,342			(2,419,337	)


Net Increase (Decrease) in Net Assets
Resulting from Operations		4,169,793			(1,252,533	)		2,676,698			(1,709,995	)


DISTRIBUTIONS TO SHAREHOLDERS
Net investment income		(958,892	)		(1,562,896	)		(747,520	)		(704,632	)
Net realized gain		—			—			—			—
Tax return of capital		—			—			—			—

Total distributions		(958,892	)		(1,562,896	)		(747,520	)		(704,632	)


CAPITAL TRANSACTIONS⁽¹⁾
Proceeds from shares issued		70,968,150			53,257,610			34,604,517			108,156,225
Cost of shares redeemed		(35,118,067	)		—			(77,170,831	)		—

Net Increase (Decrease) from Capital Transactions		35,850,083			53,257,610			(42,566,314	)		108,156,225

Total Increase (Decrease) in Net Assets		39,060,984			50,442,181			(40,637,136	)		105,741,598


NET ASSETS
Beginning of Period	$	66,440,754		$	15,998,573		$	113,945,057		$	8,203,459

End of Period	$	105,501,738		$	66,440,754		$	73,307,921		$	113,945,057

Undistributed (accumulated) net investment income (loss) included in end of period net assets	$	939,273		$	167,885		$	554,739		$	135,079


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

Shares Outstanding, End of Period		4,100,001			2,600,001			2,700,001			4,300,001

⁽¹⁾

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

See Accompanying Notes to the Financial Statements.


16		FLEXSHARES SEMIANNUAL REPORT

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, 2015 (Unaudited)			Year Ended October 31, 2014			Six Months Ended April 30, 2015 (Unaudited)			Year Ended October 31, 2014

OPERATIONS
Net investment income (loss)	$	(16,083,857	)	$	8,609,827		$	(2,039,742	)	$	2,689,387
Net realized gain (loss)		(9,610,802	)		(6,869,474	)		(543,489	)		(1,579,199	)
Net change in unrealized appreciation (depreciation)		12,331,963			(7,566,272	)		6,563,203			(3,749,437	)


Net Increase (Decrease) in Net Assets
Resulting from Operations		(13,362,696	)		(5,825,919	)		3,979,972			(2,639,249	)


DISTRIBUTIONS TO SHAREHOLDERS
Net investment income		(1,721,740	)		(8,720,353	)		(124,497	)		(2,845,439	)
Net realized gain		—			—			—			—
Tax return of capital		—			(7,550,019	)		—			(841,862	)

Total distributions		(1,721,740	)		(16,270,372	)		(124,497	)		(3,687,301	)


CAPITAL TRANSACTIONS⁽¹⁾
Proceeds from shares issued		73,426,730			329,980,079			132,873,407			26,541,661
Cost of shares redeemed		(159,977,164	)		(36,029,197	)		(9,961,327	)		(101,362,830	)

Net Increase (Decrease) from Capital Transactions		(86,550,434	)		293,950,882			122,912,080			(74,821,169	)

Total Increase (Decrease) in Net Assets		(101,634,870	)		271,854,591			126,767,555			(81,147,719	)


NET ASSETS
Beginning of Period	$	2,246,872,830		$	1,975,018,239		$	308,335,440		$	389,483,159

End of Period	$	2,145,237,960		$	2,246,872,830		$	435,102,995		$	308,335,440

Undistributed (accumulated) net investment income (loss) included in end of period net assets	$	(18,549,233	)	$	(743,636	)	$	(2,164,888	)	$	(649	)


SHARE TRANSACTIONS
Beginning of period		90,854,000			79,104,000			12,400,001			15,400,001
Shares issued		—			—			50,000			—
Shares issued in-kind		3,000,000			13,200,000			5,350,000			1,050,000
Shares redeemed		—			—			—			—
Shares redeemed in-kind		(6,550,000	)		(1,450,000	)		(400,000	)		(4,050,000	)

Shares Outstanding, End of Period		87,304,000			90,854,000			17,400,001			12,400,001

⁽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^® Disciplined Duration MBS Index Fund						FlexShares^® Credit-Scored US Corporate Bond Index Fund			FlexShares^® Ready Access Variable Income Fund
	Six Months Ended April 30, 2015 (Unaudited)			September 3, 2014* through October 31, 2014			November 12, 2014* through April 30, 2015			Six Months Ended April 30, 2015 (Unaudited)			Year Ended October 31, 2014

OPERATIONS
Net investment income (loss)	$	92,911		$	17,976		$	53,279		$	248,612		$	322,260
Net realized gain (loss)		26,144			1,988			13,079			43,999			151,546
Net change in unrealized appreciation (depreciation)		77,989			14,569			56,367			42,144			70,175


Net Increase (Decrease) in Net Assets
Resulting from Operations		197,044			34,533			122,725			334,755			543,981


DISTRIBUTIONS TO SHAREHOLDERS
Net investment income		(127,754	)		(11,891	)		(43,703	)		(232,046	)		(311,734	)
Net realized gain		(1,988	)		—			—			(119,613	)		—
Tax return of capital		—			—			—			—			—

Total distributions		(129,742	)		(11,891	)		(43,703	)		(351,659	)		(311,734	)


CAPITAL TRANSACTIONS⁽¹⁾
Proceeds from shares issued		12,566,023			—			—			30,160,851			37,737,037
Cost of shares redeemed		—			—			—			(3,771,183	)		(3,781,738	)

Net Increase from Capital Transactions		12,566,023			—			—			26,389,668			33,955,299

Total Increase (Decrease) in Net Assets		12,633,325			22,642			79,022			26,372,764			34,187,546


NET ASSETS
Beginning of Period	$	5,024,667		$	5,002,025	⁽²⁾	$	5,000,050	⁽²⁾	$	75,610,872		$	41,423,326

End of Period	$	17,657,992		$	5,024,667		$	5,079,072		$	101,983,636		$	75,610,872

Undistributed (accumulated) net investment income (loss) included in end of period net assets	$	(28,758	)	$	6,085		$	9,576		$	48,724		$	32,158


SHARE TRANSACTIONS
Beginning of period		200,001			200,001	⁽²⁾		100,001	⁽²⁾		1,000,001			550,001
Shares issued		500,000			—			—			400,000			500,000
Shares issued in-kind		—			—			—			—			—
Shares redeemed		—			—			—			(50,000	)		—
Shares redeemed in-kind		—			—			—			—			(50,000	)

Shares Outstanding, End of Period		700,001			200,001			100,001			1,350,001			1,000,001

*	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

[THIS PAGE INTENTIONALLY LEFT BLANK]


FLEXSHARES SEMIANNUAL REPORT			19

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, 2015 (Unaudited)	$	86.19	$	0.78	^(a)	$	2.84		$	3.62		$	(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, 2015 (Unaudited)		60.74		0.74	^(a)		2.98			3.72			(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, 2015 (Unaudited)		52.75		0.21	^(a)		2.43			2.64			(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^® Morningstar Global Upstream Natural Resources Index Fund
Six Months ended April 30, 2015 (Unaudited)		33.18		0.41	^(a)		(0.91	)		(0.50	)		(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, 2015 (Unaudited)		45.84		0.46	^(a)		0.46			0.92			(0.38	)		—		—		(0.38	)
Year ended October 31, 2014		41.62		1.73	^(a)		3.65			5.38			(1.16	)		—		—		(1.16	)
For the period 10/08/13* through 10/31/13		40.00		0.01	^(a)		1.61			1.62			—			—		—		—

*	Commencement of investment operations.

(a)

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

(b)

Not annualized for periods less than one year.

(c)

Annualized for periods less than one year.

(d)

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

(e)

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

(f)

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

(g)

The amount shown for a share outstanding throughout the period is 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.

See Accompanying Notes to the Financial Statements.


20		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)


$	88.64		4.19	%		4.20	%		0.28	%		0.27	%		1.78	%		1.79	%		21	%	$	775,557
	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


	62.66		6.35			5.82			0.43			0.42			2.50			2.51			7			563,954
	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


	54.39		5.22			4.73			0.66			0.65			0.84			0.85			9			239,306
	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


	31.82		(1.46	)		(1.40	)		0.49			0.48			2.62			2.63			9			2,626,804
	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			0.82			1			103,268


	46.38		2.02			1.40			0.48			0.47			2.04			2.05			10			329,285
	45.84		13.02			13.62			0.48			0.47			3.87			3.88			17			240,664
	41.62		4.05			4.20			0.52			0.47			0.32			0.37			1			4,163

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			21

Financial Highlights (cont.)


			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^® Global Quality Real Estate Index Fund
Six Months ended April 30, 2015 (Unaudited)	$	55.24	$	0.86	^(a)	$	2.04		$	2.90		$	(0.77	)	$	—	$	—	$	(0.77	)
For the period 11/05/13* through 10/31/14		50.00		1.65	^(a)		4.67			6.32			(1.08	)		—		—		(1.08	)

FlexShares^® Quality Dividend Index Fund
Six Months ended April 30, 2015 (Unaudited)		35.77		0.54	^(a)		0.99			1.53			(0.50	)		—		—		(0.50	)
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	)

FlexShares^® Quality Dividend Defensive Index Fund
Six Months ended April 30, 2015 (Unaudited)		34.99		0.49	^(a)		1.44			1.93			(0.44	)		—		—		(0.44	)
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, 2015 (Unaudited)		35.83		0.51	^(a)		0.69			1.20			(0.48	)		—		—		(0.48	)
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, 2015 (Unaudited)		26.15		0.42	^(a)		0.17			0.59			(0.26	)		—		—		(0.26	)
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, 2015 (Unaudited)		25.55		0.39	^(a)		(0.02	)^(g)		0.37			(0.19	)		—		—		(0.19	)
Year ended October 31, 2014		26.66		1.23	^(a)		(1.32	)		(0.09	)		(1.02	)		—		—		(1.02	)
For the period 04/12/13* through 10/31/13		25.00		0.44	^(a)		1.58			2.02			(0.36	)		—		—		(0.36	)

*	Commencement of investment operations.

(a)

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

(b)

Not annualized for periods less than one year.

(c)

Annualized for periods less than one year.

(d)

(e)

(f)

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

(g)

(h)

Per share amount is less than $0.005.

See Accompanying Notes to the Financial Statements.


22		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)


$	57.37		5.26	%		4.76	%		0.46	%		0.45	%		3.00	%		3.01	%		30	%	$	91,794
	55.24		12.79			13.51			0.47			0.45			3.16			3.18			44			58,003


	36.80		4.29			4.35			0.38			0.37			2.95			2.96			42			656,926
	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


	36.48		5.51			5.68			0.38			0.37			2.74			2.75			37			182,423
	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


	36.55		3.34			3.51			0.38			0.37			2.84			2.85			41			104,175
	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


	26.48		2.31			1.57			0.48			0.47			3.33			3.34			43			378,601
	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


	25.73		1.49			0.35			0.48			0.47			3.16			3.17			40			105,502
	25.55		(0.51	)		(0.33	)		0.48			0.47			4.58			4.59			69			66,441
	26.66		8.20			8.85			0.49			0.47			3.16			3.18			27			15,999

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			23

Financial Highlights (cont.)


			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^® International Quality Dividend Dynamic Index Fund
Six Months ended April 30, 2015 (Unaudited)	$	26.50	$	0.39	^(a)	$	0.71		$	1.10		$	(0.45	)	$	—		$	—		$	(0.45	)
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, 2015 (Unaudited)		24.73		(0.18	)^(a)		0.04			(0.14	)		(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			—			—			—			—

FlexShares^® iBoxx 5-Year Target Duration TIPS Index Fund
Six Months ended April 30, 2015 (Unaudited)		24.87		(0.13	)^(a)		0.28			0.15			(0.01	)		—			—			(0.01	)
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, 2015 (Unaudited)		25.12		0.21	^(a)		0.22			0.43			(0.32	)		0.00	^(h)		—			(0.32	)
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
For the period 11/12/14* through 04/30/15 (Unaudited)		50.00		0.53	^(a)		0.70			1.23			(0.44	)		—			—			(0.44	)

FlexShares^® Ready Access Variable Income Fund
Six Months ended April 30, 2015 (Unaudited)		75.61		0.20	^(a)		0.04			0.24			(0.20	)		(0.11	)		—			(0.31	)
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.

See Accompanying Notes to the Financial Statements.


24		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)


$	27.15		4.26	%		2.98	%		0.48	%		0.47	%		3.01	%		3.02	%		47	%	$	73,308
	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


	24.57		(0.57	)		(0.53	)		0.21			0.20			(1.50	)		(1.50	)		31			2,145,238
	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


	25.01		0.60			0.64			0.22			0.20			(1.07	)		(1.05	)		76			435,103
	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


	25.23		1.75			1.87			0.22			0.20			1.65			1.67			116			17,658
	25.12		0.72			0.76			0.27			0.20			2.18			2.26			23			5,025


	50.79		2.46			2.76			0.27			0.22			2.23			2.28			39			5,079


	75.54		0.32			0.12			0.26			0.25			0.53			0.54			26			101,984
	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			25

Schedule of Investments

FlexShares^® Morningstar US Market Factor Tilt Index Fund

April 30, 2015 (Unaudited)


	Shares		Value
COMMON STOCKS – 99.6%
Aerospace & Defense – 2.2%
AAR Corp.		11,025	$	333,396
Aerojet Rocketdyne Holdings, Inc.*		4,900		96,334
Aerovironment, Inc.*		1,400		35,840
American Science & Engineering, Inc.		700		26,194
Astronics Corp.*		1,050		70,675
B/E Aerospace, Inc.		2,100		125,559
The Boeing Co.		13,825		1,981,675
Cubic Corp.		1,225		60,735
Curtiss-Wright Corp.		4,550		332,423
DigitalGlobe, Inc.*		4,025		129,484
Ducommun, Inc.*		2,800		85,120
Engility Holdings, Inc.		4,900		136,563
Esterline Technologies Corp.*		3,150		350,563
Exelis, Inc.		58,450		1,433,194
General Dynamics Corp.		5,425		744,961
HEICO Corp.		2,975		166,124
Hexcel Corp.		5,600		280,840
Honeywell International, Inc.		15,925		1,607,151
Huntington Ingalls Industries, Inc.		2,450		322,395
The KEYW Holding Corp.*		3,325		32,086
Kratos Defense & Security Solutions, Inc.*		8,750		47,863
L-3 Communications Holdings, Inc.		1,750		201,093
Lockheed Martin Corp.		6,825		1,273,545
Moog, Inc., Class A*		4,200		293,496
National Presto Industries, Inc.		1,050		65,709
Northrop Grumman Corp.		4,900		754,796
Orbital ATK, Inc.		3,500		256,060
Precision Castparts Corp.		2,275		470,220
Raytheon Co.		8,575		891,800
Rockwell Collins, Inc.		2,450		238,459
Sparton Corp.*		1,925		49,607
Spirit AeroSystems Holdings, Inc., Class A*		7,350		374,042
TASER International, Inc.*		4,550		137,365
Teledyne Technologies, Inc.*		2,275		238,807
Textron, Inc.		4,725		207,806
TransDigm Group, Inc.		700		148,491
Triumph Group, Inc.		15,750		933,030


	Shares		Value
Aerospace & Defense – (continued)
United Technologies Corp.		17,500	$	1,990,625
Vectrus, Inc.*		2,800		71,568
				16,995,694
Air Freight & Logistics – 0.5%
Air Transport Services Group, Inc.*		15,400		143,528
Atlas Air Worldwide Holdings, Inc.*		7,875		383,827
C.H. Robinson Worldwide, Inc.		3,500		225,365
Echo Global Logistics, Inc.*		1,050		30,345
Expeditors International of Washington, Inc.		3,325		152,385
FedEx Corp.		5,775		979,267
Forward Air Corp.		2,450		123,406
Hub Group, Inc., Class A*		2,100		83,790
Park-Ohio Holdings Corp.		2,450		113,509
United Parcel Service, Inc., Class B		14,700		1,477,791
UTi Worldwide, Inc.*		350		3,160
XPO Logistics, Inc.*		2,975		144,288
				3,860,661
Airlines – 0.8%
Alaska Air Group, Inc.		5,075		325,104
Allegiant Travel Co.		1,225		188,356
American Airlines Group, Inc.		20,475		988,635
Delta Air Lines, Inc.		23,450		1,046,808
Hawaiian Holdings, Inc.*		15,225		351,393
JetBlue Airways Corp.*		79,100		1,623,923
Republic Airways Holdings, Inc.*		12,950		158,508
SkyWest, Inc.		17,675		241,264
Southwest Airlines Co.		12,600		511,056
Spirit Airlines, Inc.*		3,500		239,645
United Continental Holdings, Inc.*		9,975		595,907
				6,270,599
Auto Components – 1.0%
American Axle & Manufacturing Holdings, Inc.*		17,325		431,912
Autoliv, Inc.		2,275		270,088
BorgWarner, Inc.		4,550		269,360
Cooper Tire & Rubber Co.		15,575		661,782
Cooper-Standard Holding, Inc.*		875		53,392

See Accompanying Notes to the Financial Statements.


26		FLEXSHARES SEMIANNUAL REPORT

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


	Shares		Value
COMMON STOCKS – (continued)
Auto Components – (continued)
Dana Holding Corp.		52,325	$	1,128,650
Delphi Automotive PLC		5,075		421,225
Dorman Products, Inc.*		1,750		81,952
Drew Industries, Inc.		1,575		89,255
Federal-Mogul Holdings Corp.*		11,025		142,222
Fuel Systems Solutions, Inc.*		3,850		42,735
Gentex Corp.		7,350		127,522
Gentherm, Inc.*		3,150		166,099
The Goodyear Tire & Rubber Co.		8,925		253,158
Johnson Controls, Inc.		19,425		978,632
Lear Corp.		1,750		194,303
Modine Manufacturing Co.*		20,650		253,789
Motorcar Parts of America, Inc.*		1,925		56,268
Remy International, Inc.		9,800		218,050
Standard Motor Products, Inc.		2,625		99,225
Stoneridge, Inc.*		7,175		86,387
Superior Industries International, Inc.		2,100		39,060
Tenneco, Inc.*		18,900		1,104,705
Tower International, Inc.*		5,775		149,342
TRW Automotive Holdings Corp.*		1,750		183,855
Visteon Corp.*		2,450		248,430
				7,751,398
Automobiles – 0.7%
Ford Motor Co.		120,225		1,899,555
General Motors Co.		41,125		1,441,843
Harley-Davidson, Inc.		5,425		304,939
Tesla Motors, Inc.*		2,100		474,705
Thor Industries, Inc.		14,525		873,969
Winnebago Industries, Inc.		7,700		159,467
				5,154,478
Banks – 7.8%
1st Source Corp.		4,025		125,258
Ameris Bancorp		3,500		87,465
Associated Banc-Corp		45,325		852,563
Banc of California, Inc.		5,600		69,440
BancFirst Corp.		1,225		70,707
The Bancorp, Inc.*		875		8,522
BancorpSouth, Inc.		6,475		156,760
Bank of America Corp.		228,375		3,638,014


	Shares		Value
Banks – (continued)
Bank of Hawaii Corp.		3,675	$	221,933
Bank of the Ozarks, Inc.		5,600		217,056
BankUnited, Inc.		31,850		1,046,591
Banner Corp.		2,625		118,702
BB&T Corp.		22,750		871,097
BBCN Bancorp, Inc.		22,050		312,889
Berkshire Hills Bancorp, Inc.		7,350		205,873
BOK Financial Corp.		700		45,633
Boston Private Financial Holdings, Inc.		5,425		71,339
Bryn Mawr Bank Corp.		2,800		84,252
Capital Bank Financial Corp., Class A*		3,850		104,412
Cardinal Financial Corp.		5,425		111,918
Cathay General Bancorp		6,300		180,054
Central Pacific Financial Corp.		3,150		72,135
Chemical Financial Corp.		8,225		254,152
CIT Group, Inc.		7,350		330,970
Citigroup, Inc.		94,325		5,029,409
Citizens Financial Group, Inc.		9,975		259,849
City Holding Co.		3,325		152,850
City National Corp./California		1,575		146,790
CoBiz Financial, Inc.		5,250		63,052
Columbia Banking System, Inc.		7,525		223,492
Comerica, Inc.		3,850		182,528
Commerce Bancshares, Inc./Montreal		1,050		44,845
Community Bank System, Inc.		5,250		183,487
Community Trust Bancorp, Inc.		3,850		123,508
Cullen/Frost Bankers, Inc.		1,925		140,409
Customers Bancorp, Inc.*		6,825		172,058
CVB Financial Corp.		14,175		221,839
Eagle Bancorp, Inc.*		1,925		70,955
East West Bancorp, Inc.		2,450		99,445
Fifth Third Bancorp		30,800		616,000
Financial Institutions, Inc.		3,500		82,425
First BanCorp/Puerto Rico*		36,575		219,816
First Citizens BancShares, Inc./North Carolina, Class A		2,625		630,892
First Commonwealth Financial Corp.		25,900		233,618
First Financial Bancorp		17,325		299,029
First Financial Bankshares, Inc.		3,500		101,360

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			27

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


	Shares		Value
COMMON STOCKS – (continued)
Banks – (continued)
First Financial Corp./Indiana		2,100	$	71,295
First Horizon National Corp.		67,025		955,106
First Interstate BancSystem, Inc., Class A		7,175		194,155
First Merchants Corp.		9,625		217,236
First Midwest Bancorp, Inc./Illinois		6,125		104,738
First NBC Bank Holding Co.*		4,200		147,756
First Niagara Financial Group, Inc.		114,100		1,037,740
First Republic Bank/California		2,800		163,212
FirstMerit Corp.		52,325		1,013,535
Flushing Financial Corp.		9,275		177,709
FNB Corp./Pennsylvania		51,975		689,708
Fulton Financial Corp.		49,875		606,480
Glacier Bancorp, Inc.		4,725		124,457
Hancock Holding Co.		22,925		667,347
Hanmi Financial Corp.		2,625		55,860
Hilltop Holdings, Inc.*		22,750		457,503
Home BancShares, Inc./Arizona		4,200		138,096
HomeTrust Bancshares, Inc.*		700		10,948
Huntington Bancshares, Inc./Ohio		18,375		199,553
IBERIABANK Corp.		9,625		599,734
Independent Bank Corp./Massachusetts		7,175		299,341
Independent Bank Corp./Michigan		4,375		57,925
Independent Bank Group, Inc.		875		33,688
International Bancshares Corp.		17,500		454,650
Investors Bancorp, Inc.		12,950		153,328
JPMorgan Chase & Co.		113,400		7,173,684
KeyCorp		25,900		374,255
Lakeland Financial Corp.		2,975		116,174
LegacyTexas Financial Group, Inc.		2,975		75,714
M&T Bank Corp.		2,625		314,134
MB Financial, Inc.		7,525		226,728
National Penn Bancshares, Inc.		37,800		393,120
NBT Bancorp, Inc.		11,900		287,385
OFG Bancorp		14,000		197,260
Old National Bancorp/Indiana		24,500		334,670
Opus Bank		1,400		43,820
PacWest Bancorp		5,075		228,883
Park National Corp.		2,800		231,168
Pinnacle Financial Partners, Inc.		3,150		150,098


	Shares		Value
Banks – (continued)
The PNC Financial Services Group, Inc.		16,100	$	1,476,853
Popular, Inc.*		32,900		1,066,947
PrivateBancorp, Inc.		6,300		233,541
Prosperity Bancshares, Inc.		2,625		140,018
Regions Financial Corp.		32,375		318,246
Renasant Corp.		8,225		244,365
S&T Bancorp, Inc.		7,350		197,715
Sandy Spring Bancorp, Inc.		6,300		164,178
Signature Bank/New York*		1,400		187,726
Simmons First National Corp., Class A		1,750		76,563
South State Corp.		2,100		142,212
Southside Bancshares, Inc.		3,151		86,078
Southwest Bancorp, Inc.		1,400		24,122
State Bank Financial Corp.		2,800		56,028
Sterling Bancorp/Delaware		22,750		295,295
Stock Yards Bancorp, Inc.		2,450		85,260
SunTrust Banks, Inc.		15,050		624,575
Susquehanna Bancshares, Inc.		56,175		754,992
SVB Financial Group*		1,575		209,097
Synovus Financial Corp.		11,725		324,314
TCF Financial Corp.		48,125		753,638
Texas Capital Bancshares, Inc.*		2,800		147,448
Tompkins Financial Corp.		2,625		136,894
TowneBank/Virginia		13,300		220,115
TriCo Bancshares		1,225		28,567
Trustmark Corp.		15,925		379,015
U.S. Bancorp/Minnesotta		47,425		2,033,110
UMB Financial Corp.		2,450		121,986
Umpqua Holdings Corp.		15,225		258,977
Union Bankshares Corp.		14,700		319,872
United Bankshares, Inc./West Virginia		17,675		664,227
United Community Banks, Inc./Georgia		4,725		87,932
Valley National Bancorp		52,500		495,075
Washington Trust Bancorp, Inc.		2,975		110,135
Webster Financial Corp.		27,825		996,970
Wells Fargo & Co.		142,800		7,868,280
WesBanco, Inc.		9,625		303,284
Westamerica Bancorp		2,625		114,319
Western Alliance Bancorp*		7,175		221,851

See Accompanying Notes to the Financial Statements.


28		FLEXSHARES SEMIANNUAL REPORT

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


	Shares		Value
COMMON STOCKS – (continued)
Banks – (continued)
Wilshire Bancorp, Inc.		19,600	$	206,780
Wintrust Financial Corp.		14,175		690,890
Zions Bancorp		4,375		123,966
				60,325,040
Beverages – 1.1%
The Boston Beer Co., Inc., Class A*		700		173,460
Brown-Forman Corp., Class B		2,800		252,644
Coca-Cola Bottling Co. Consolidated		525		59,325
The Coca-Cola Co.		84,700		3,435,432
Coca-Cola Enterprises, Inc.		4,200		186,522
Constellation Brands, Inc., Class A*		2,800		324,632
Dr. Pepper Snapple Group, Inc.		3,675		274,081
Molson Coors Brewing Co., Class B		4,550		334,471
Monster Beverage Corp.*		3,325		455,891
PepsiCo, Inc.		31,675		3,012,926
				8,509,384
Biotechnology – 2.5%
ACADIA Pharmaceuticals, Inc.*		4,725		161,453
Achillion Pharmaceuticals, Inc.*		5,075		44,406
Acorda Therapeutics, Inc.*		2,100		63,147
Agenus, Inc.*		1,050		6,940
Agios Pharmaceuticals, Inc.*		700		64,638
Alexion Pharmaceuticals, Inc.*		3,850		651,535
Alkermes PLC*		2,275		125,967
Alnylam Pharmaceuticals, Inc.*		2,450		249,581
AMAG Pharmaceuticals, Inc.*		1,400		71,358
Amgen, Inc.		16,275		2,569,985
Anacor Pharmaceuticals, Inc.*		3,325		175,194
Arena Pharmaceuticals, Inc.*		13,125		57,225
ARIAD Pharmaceuticals, Inc.*		6,650		57,655
Array BioPharma, Inc.*		4,375		27,344
Arrowhead Research Corp.*		2,100		14,490
BioCryst Pharmaceuticals, Inc.*		3,500		32,515
Biogen, Inc.*		4,725		1,766,819
BioMarin Pharmaceutical, Inc.*		3,500		392,175
Bluebird Bio, Inc.*		1,750		233,082


	Shares		Value
Biotechnology – (continued)
Catalyst Pharmaceutical Partners, Inc.*		3,325	$	10,507
Celgene Corp.*		16,800		1,815,408
Celldex Therapeutics, Inc.*		5,075		121,800
Cepheid, Inc.*		4,025		225,802
Chimerix, Inc.*		1,925		65,450
Clovis Oncology, Inc.*		9,100		731,276
Dyax Corp.*		10,850		259,423
Dynavax Technologies Corp.*		525		10,560
Emergent Biosolutions, Inc.*		1,750		51,957
Enanta Pharmaceuticals, Inc.*		175		5,992
Epizyme, Inc.*		1,225		19,980
Exact Sciences Corp.*		5,775		120,697
Exelixis, Inc.*		7,000		17,990
Five Prime Therapeutics, Inc.*		350		7,021
Geron Corp.*		10,675		38,643
Gilead Sciences, Inc.*		31,150		3,130,886
Halozyme Therapeutics, Inc.*		3,850		57,250
Heron Therapeutics, Inc.*		4,375		47,250
Idera Pharmaceuticals, Inc.*		1,225		3,442
ImmunoGen, Inc.*		3,150		26,051
Immunomedics, Inc.*		4,200		15,120
Incyte Corp.*		5,075		493,087
Infinity Pharmaceuticals, Inc.*		11,725		148,556
Inovio Pharmaceuticals, Inc.*		2,100		17,136
Insmed, Inc.*		1,575		31,563
Insys Therapeutics, Inc.*		175		9,200
Intercept Pharmaceuticals, Inc.*		175		44,242
Intrexon Corp.*		2,275		88,338
Ironwood Pharmaceuticals, Inc.*		6,825		93,230
Isis Pharmaceuticals, Inc.*		3,850		218,372
Karyopharm Therapeutics, Inc.*		1,050		28,518
Keryx Biopharmaceuticals, Inc.*		6,475		69,024
KYTHERA Biopharmaceuticals, Inc.*		525		22,937
Lexicon Pharmaceuticals, Inc.*		11,550		11,550
Ligand Pharmaceuticals, Inc.*		1,575		122,283
MacroGenics, Inc.*		1,050		30,041
Medivation, Inc.*		1,400		169,036
Merrimack Pharmaceuticals, Inc.*		9,800		108,780
MiMedx Group, Inc.*		700		6,580
Momenta Pharmaceuticals, Inc.*		350		6,108
Myriad Genetics, Inc.*		4,375		144,506

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			29

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


	Shares		Value
COMMON STOCKS – (continued)
Biotechnology – (continued)
Navidea Biopharmaceuticals, Inc.*		700	$	945
Neurocrine Biosciences, Inc.*		4,550		155,110
NewLink Genetics Corp.*		1,750		78,050
Novavax, Inc.*		14,700		113,631
OPKO Health, Inc.*		10,150		139,664
Orexigen Therapeutics, Inc.*		5,425		35,642
Organovo Holdings, Inc.*		3,675		16,685
Osiris Therapeutics, Inc.*		1,575		23,893
OvaScience, Inc.*		525		12,991
PDL BioPharma, Inc.		50,050		333,834
Peregrine Pharmaceuticals, Inc.*		3,850		5,044
Pharmacyclics, Inc.*		1,400		358,680
Portola Pharmaceuticals, Inc.*		1,400		49,966
Progenics Pharmaceuticals, Inc.*		3,500		17,325
PTC Therapeutics, Inc.*		1,400		82,250
Puma Biotechnology, Inc.*		875		158,008
Raptor Pharmaceutical Corp.*		3,325		33,649
Receptos, Inc.*		1,925		283,630
Regeneron Pharmaceuticals, Inc.*		1,575		720,500
Regulus Therapeutics, Inc.*		1,575		19,766
Repligen Corp.*		1,575		46,478
Rigel Pharmaceuticals, Inc.*		2,800		11,928
Sangamo BioSciences, Inc.*		4,900		60,613
Sarepta Therapeutics, Inc.*		1,575		19,215
Seattle Genetics, Inc.*		2,625		90,143
Stemline Therapeutics, Inc.*		3,150		43,754
Synageva BioPharma Corp.*		1,575		144,837
Synergy Pharmaceuticals, Inc.*		175		613
Synta Pharmaceuticals Corp.*		7,525		16,931
TG Therapeutics, Inc.*		1,575		21,987
United Therapeutics Corp.*		1,925		307,403
Vanda Pharmaceuticals, Inc.*		1,575		14,411
Vertex Pharmaceuticals, Inc.*		5,775		711,942
ZIOPHARM Oncology, Inc.*		1,575		13,876
				19,554,495
Building Products – 0.3%
A.O. Smith Corp.		4,200		268,380
AAON, Inc.		3,500		83,895
Allegion PLC		175		10,701
American Woodmark Corp.*		1,050		53,235


	Shares		Value
Building Products – (continued)
Apogee Enterprises, Inc.		2,275	$	119,710
Armstrong World Industries, Inc.*		2,100		114,954
Builders FirstSource, Inc.*		3,675		46,893
Continental Building Products, Inc.*		700		15,407
Fortune Brands Home & Security, Inc.		2,625		117,075
Gibraltar Industries, Inc.*		7,525		124,614
Griffon Corp.		6,825		114,728
Insteel Industries, Inc.		1,050		21,273
Lennox International, Inc.		2,450		259,602
Masco Corp.		7,350		194,701
Masonite International Corp.*		350		23,170
NCI Building Systems, Inc.*		525		8,127
Nortek, Inc.*		1,050		88,851
Owens Corning		4,025		155,607
Patrick Industries, Inc.*		1,750		105,105
PGT, Inc.*		1,750		19,810
Ply Gem Holdings, Inc.*		5,950		80,801
Quanex Building Products Corp.		2,975		57,418
Simpson Manufacturing Co., Inc.		2,800		91,784
Trex Co., Inc.*		2,275		106,743
Universal Forest Products, Inc.		1,575		87,129
USG Corp.*		2,800		74,312
				2,444,025
Capital Markets – 2.2%
Actua Corp.*		2,450		35,451
Affiliated Managers Group, Inc.*		1,050		237,436
Ameriprise Financial, Inc.		3,675		460,404
Arlington Asset Investment Corp., Class A		6,475		140,378
Artisan Partners Asset Management, Inc., Class A		9,100		407,589
The Bank of New York Mellon Corp.		26,250		1,111,425
BGC Partners, Inc., Class A		47,075		472,398
BlackRock, Inc.		2,975		1,082,721
Calamos Asset Management, Inc., Class A		4,375		54,119
The Charles Schwab Corp.		24,500		747,250
Cohen & Steers, Inc.		1,400		53,004
Cowen Group, Inc., Class A*		28,875		161,411
Diamond Hill Investment Group, Inc.		350		63,770

See Accompanying Notes to the Financial Statements.


30		FLEXSHARES SEMIANNUAL REPORT

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


	Shares		Value
COMMON STOCKS – (continued)
Capital Markets – (continued)
ETRADE Financial Corp.		12,250	$	352,677
Eaton Vance Corp.		2,450		100,646
Evercore Partners, Inc., Class A		1,750		84,420
FBR & Co.*		3,500		75,110
Federated Investors, Inc., Class B		8,050		276,920
Financial Engines, Inc.		2,450		103,316
Franklin Resources, Inc.		10,675		550,403
FXCM, Inc., Class A		3,500		7,035
GAMCO Investors, Inc., Class A		525		40,588
The Goldman Sachs Group, Inc.		12,250		2,406,145
Greenhill & Co., Inc.		525		20,764
HFF, Inc., Class A		2,800		109,732
Interactive Brokers Group, Inc., Class A		8,225		279,239
INTL. FCStone, Inc.*		1,925		61,792
Invesco Ltd.		10,150		420,413
Investment Technology Group, Inc.*		9,800		279,202
Janus Capital Group, Inc.		16,275		291,322
KCG Holdings, Inc., Class A*		21,350		274,134
Legg Mason, Inc.		2,450		128,993
LPL Financial Holdings, Inc.		1,050		42,494
Manning & Napier, Inc.		3,150		33,485
Moelis & Co., Class A		1,400		37,870
Morgan Stanley		43,575		1,625,783
Northern Trust Corp.^‡		6,125		448,044
NorthStar Asset Management Group, Inc.		8,225		172,972
Piper Jaffray Cos.*		4,200		211,890
Raymond James Financial, Inc.		1,750		98,928
RCS Capital Corp., Class A		9,975		85,685
Safeguard Scientifics, Inc.*		5,775		103,892
SEI Investments Co.		3,150		143,829
State Street Corp.		9,450		728,784
Stifel Financial Corp.*		20,300		1,072,653
T. Rowe Price Group, Inc.		4,200		340,956
TD Ameritrade Holding Corp.		4,375		158,594
TPG Specialty Lending, Inc.		7,875		143,010
Virtus Investment Partners, Inc.		350		46,767
Waddell & Reed Financial, Inc., Class A		2,625		129,465


	Shares		Value
Capital Markets – (continued)
Walter Investment Management Corp.*		12,775	$	224,968
WisdomTree Investments, Inc.		7,700		146,608
				16,886,884
Chemicals – 2.3%
A. Schulman, Inc.		7,700		326,865
Air Products & Chemicals, Inc.		4,375		627,506
Airgas, Inc.		875		88,620
Albemarle Corp.		2,800		167,160
American Vanguard Corp.		175		1,909
Ashland, Inc.		1,225		154,791
Axalta Coating Systems Ltd.*		1,225		37,583
Axiall Corp.		3,500		142,800
Balchem Corp.		1,925		100,908
Cabot Corp.		18,550		792,827
Calgon Carbon Corp.		4,375		97,081
Celanese Corp.		4,550		301,938
CF Industries Holdings, Inc.		1,400		402,458
Chemtura Corp.*		8,050		242,546
Cytec Industries, Inc.		4,900		270,921
The Dow Chemical Co.		32,200		1,642,200
E.I. du Pont de Nemours & Co.		19,250		1,409,100
Eastman Chemical Co.		4,200		320,124
Ecolab, Inc.		5,600		627,088
Ferro Corp.*		9,975		134,563
Flotek Industries, Inc.*		2,450		35,010
FMC Corp.		3,850		228,343
FutureFuel Corp.		1,050		11,413
HB Fuller Co.		2,625		109,646
Huntsman Corp.		5,250		121,012
Innophos Holdings, Inc.		1,750		92,470
Innospec, Inc.		6,650		290,605
International Flavors & Fragrances, Inc.		1,225		140,569
Intrepid Potash, Inc.*		4,725		59,204
Koppers Holdings, Inc.		1,400		31,472
Kraton Performance Polymers, Inc.*		7,350		165,669
Kronos Worldwide, Inc.		6,825		91,796
LSB Industries, Inc.*		2,275		96,483
LyondellBasell Industries N.V., Class A		12,075		1,250,004

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			31

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


	Shares		Value
COMMON STOCKS – (continued)
Chemicals – (continued)
Minerals Technologies, Inc.		2,625	$	177,791
Monsanto Co.		10,325		1,176,637
The Mosaic Co.		5,250		231,000
NewMarket Corp.		175		78,208
Olin Corp.		23,975		707,982
OM Group, Inc.		3,150		94,626
OMNOVA Solutions, Inc.*		12,425		99,276
PolyOne Corp.		8,050		314,353
PPG Industries, Inc.		2,800		620,368
Praxair, Inc.		6,650		810,835
Quaker Chemical Corp.		1,575		131,072
Rayonier Advanced Materials, Inc.		3,325		55,561
Rentech, Inc.*		28,525		34,230
RPM International, Inc.		2,275		108,154
The Scotts Miracle-Gro Co., Class A		2,800		180,628
Senomyx, Inc.*		2,625		15,199
Sensient Technologies Corp.		5,075		331,702
The Sherwin-Williams Co.		1,925		535,150
Sigma-Aldrich Corp.		2,100		291,732
Stepan Co.		5,075		258,470
Tredegar Corp.		1,400		28,658
Trinseo S.A.*		3,150		71,725
Tronox Ltd., Class A		10,675		223,641
The Valspar Corp.		1,225		99,348
W.R. Grace & Co.*		1,050		101,556
Westlake Chemical Corp.		875		68,233
Zep, Inc.		1,575		31,311
				17,490,130
Commercial Services & Supplies – 1.2%
ABM Industries, Inc.		13,825		443,091
ACCO Brands Corp.*		31,500		247,905
The ADT Corp.		3,500		131,600
ARC Document Solutions, Inc.*		4,725		40,351
Brady Corp., Class A		14,000		372,820
The Brink’s Co.		12,775		338,154
CECO Environmental Corp.		4,550		53,644
Cintas Corp.		2,275		181,886
Clean Harbors, Inc.*		2,625		145,031
Copart, Inc.*		1,925		68,472


	Shares		Value
Commercial Services & Supplies – (continued)
Covanta Holding Corp.		9,800	$	198,842
Deluxe Corp.		4,900		317,275
Ennis, Inc.		6,475		99,585
G&K Services, Inc., Class A		1,400		98,840
Healthcare Services Group, Inc.		5,250		158,917
Herman Miller, Inc.		5,425		148,699
HNI Corp.		3,500		163,240
InnerWorkings, Inc.*		875		5,539
Interface, Inc.		3,150		68,449
KAR Auction Services, Inc.		5,425		201,864
Kimball International, Inc., Class B		8,925		90,321
Knoll, Inc.		4,375		99,619
Matthews International Corp., Class A		6,650		322,725
McGrath RentCorp		1,050		34,766
Mobile Mini, Inc.		2,800		107,912
MSA Safety, Inc.		1,575		72,040
Multi-Color Corp.		1,925		120,852
Performant Financial Corp.*		5,600		16,632
Pitney Bowes, Inc.		11,900		266,203
Quad/Graphics, Inc.		5,425		116,855
R.R. Donnelley & Sons Co.		60,550		1,127,441
Republic Services, Inc.		6,650		270,190
Rollins, Inc.		2,450		60,760
SP Plus Corp.*		875		19,915
Steelcase, Inc., Class A		11,900		209,083
Stericycle, Inc.*		2,100		280,203
Team, Inc.*		700		27,356
Tetra Tech, Inc.		18,375		498,146
Tyco International PLC		7,700		303,226
U.S. Ecology, Inc.		1,750		82,093
UniFirst Corp.		1,400		158,522
United Stationers, Inc.		11,375		461,939
Viad Corp.		1,575		41,848
Waste Connections, Inc.		1,925		91,264
Waste Management, Inc.		10,150		502,730
West Corp.		12,425		384,554
				9,251,399
Communications Equipment – 1.5%
ADTRAN, Inc.		3,325		55,228
Alliance Fiber Optic Products, Inc.		2,625		48,195
ARRIS Group, Inc.*		8,400		282,870

See Accompanying Notes to the Financial Statements.


32		FLEXSHARES SEMIANNUAL REPORT

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


	Shares		Value
COMMON STOCKS – (continued)
Communications Equipment – (continued)
Aruba Networks, Inc.*		5,425	$	133,509
Bel Fuse, Inc., Class B		1,400		28,742
Black Box Corp.		5,425		107,957
Brocade Communications Systems, Inc.		25,375		286,737
CalAmp Corp.*		1,925		37,942
Calix, Inc.*		2,450		18,105
Ciena Corp.*		6,125		130,462
Cisco Systems, Inc.		152,425		4,394,413
CommScope Holding Co., Inc.*		2,800		82,628
Comtech Telecommunications Corp.		700		20,230
EchoStar Corp., Class A*		2,100		105,000
Emulex Corp.*		21,525		172,631
F5 Networks, Inc.*		1,050		128,121
Finisar Corp.*		31,325		636,837
Harmonic, Inc.*		12,950		90,780
Harris Corp.		2,800		224,672
Infinera Corp.*		8,400		157,920
InterDigital, Inc.		2,975		162,792
Ixia*		8,225		98,536
JDS Uniphase Corp.*		8,575		108,560
Juniper Networks, Inc.		10,150		268,265
Motorola Solutions, Inc.		3,675		219,581
NETGEAR, Inc.*		10,500		317,835
Oclaro, Inc.*		19,250		36,960
Palo Alto Networks, Inc.*		1,925		284,361
Plantronics, Inc.		2,625		139,834
Polycom, Inc.*		11,725		153,011
QUALCOMM, Inc.		33,600		2,284,800
Ruckus Wireless, Inc.*		175		2,044
ShoreTel, Inc.*		9,625		66,990
Sonus Networks, Inc.*		3,675		29,106
Ubiquiti Networks, Inc.		875		24,999
ViaSat, Inc.*		2,100		126,252
				11,466,905
Construction & Engineering – 0.4%
AECOM*		7,350		231,966
Aegion Corp.*		7,350		135,387
Argan, Inc.		1,925		62,197
Chicago Bridge & Iron Co. N.V.		3,850		183,452


	Shares		Value
Construction & Engineering – (continued)
Comfort Systems USA, Inc.		3,325	$	68,794
Dycom Industries, Inc.*		2,450		112,651
EMCOR Group, Inc.		5,600		249,928
Fluor Corp.		3,150		189,441
Furmanite Corp.*		2,100		15,330
Granite Construction, Inc.		2,100		72,891
Great Lakes Dredge & Dock Corp.*		1,225		7,105
Jacobs Engineering Group, Inc.*		3,500		150,010
KBR, Inc.		9,975		174,263
MasTec, Inc.*		22,750		408,135
MYR Group, Inc.*		4,725		138,537
Northwest Pipe Co.*		875		21,210
Orion Marine Group, Inc.*		2,625		22,103
Primoris Services Corp.		2,800		53,844
Quanta Services, Inc.*		5,950		172,015
Tutor Perini Corp.*		14,000		296,800
				2,766,059
Construction Materials – 0.1%
Eagle Materials, Inc.		1,575		131,339
Headwaters, Inc.*		7,350		129,213
Martin Marietta Materials, Inc.		1,750		249,638
U.S. Concrete, Inc.*		2,450		88,935
Vulcan Materials Co.		3,150		269,388
				868,513
Consumer Finance – 0.8%
Ally Financial, Inc.*		16,450		360,090
American Express Co.		19,075		1,477,359
Capital One Financial Corp.		15,750		1,273,387
Cash America International, Inc.		8,575		222,264
Consumer Portfolio Services, Inc.*		4,900		31,311
Credit Acceptance Corp.*		875		206,675
Discover Financial Services		12,775		740,567
Encore Capital Group, Inc.*		7,000		283,080
Ezcorp, Inc., Class A*		17,850		164,220
First Cash Financial Services, Inc.*		875		42,297
Green Dot Corp., Class A*		8,050		129,605
JG Wentworth Co., Class A*		4,200		42,252
Nelnet, Inc., Class A		5,075		227,208
PRA Group, Inc.*		3,675		201,298
Santander Consumer USA Holdings, Inc.		2,975		73,453

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			33

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


	Shares		Value
COMMON STOCKS – (continued)
Consumer Finance – (continued)
SLM Corp.*		6,125	$	62,414
Springleaf Holdings, Inc.*		1,750		87,500
Synchrony Financial*		875		27,256
World Acceptance Corp.*		2,975		251,745
				5,903,981
Containers & Packaging – 0.5%
AEP Industries, Inc.*		350		17,535
AptarGroup, Inc.		875		54,311
Avery Dennison Corp.		1,750		97,282
Ball Corp.		2,275		167,008
Bemis Co., Inc.		4,025		181,125
Berry Plastics Group, Inc.*		34,125		1,167,757
Crown Holdings, Inc.*		3,675		199,405
Graphic Packaging Holding Co.		20,300		286,230
Greif, Inc., Class A		7,350		299,586
MeadWestvaco Corp.		3,675		179,340
Myers Industries, Inc.		2,275		36,787
Owens-Illinois, Inc.*		3,150		75,317
Packaging Corp. of America		2,800		193,732
Rock-Tenn Co., Class A		3,675		231,452
Sealed Air Corp.		3,850		175,560
Silgan Holdings, Inc.		4,200		226,254
Sonoco Products Co.		1,750		78,208
				3,666,889
Distributors – 0.1%
Core-Mark Holding Co., Inc.		2,975		156,812
Genuine Parts Co.		3,150		283,028
LKQ Corp.*		7,875		213,176
Pool Corp.		3,850		249,827
VOXX International Corp.*		9,100		86,723
				989,566
Diversified Consumer Services – 0.4%
American Public Education, Inc.*		5,950		165,945
Apollo Education Group, Inc.*		30,975		519,915
Ascent Capital Group, Inc., Class A*		1,225		49,049
Bridgepoint Education, Inc.*		4,025		35,299
Bright Horizons Family Solutions, Inc.*		2,625		131,985


	Shares		Value
Diversified Consumer Services – (continued)
Capella Education Co.		1,400	$	75,642
Career Education Corp.*		9,275		38,955
Carriage Services, Inc.		2,800		66,192
Chegg, Inc.*		14,875		110,521
DeVry Education Group, Inc.		4,900		148,176
Graham Holdings Co., Class B		175		179,013
Grand Canyon Education, Inc.*		3,850		174,328
H&R Block, Inc.		5,075		153,468
Houghton Mifflin Harcourt Co.*		3,325		76,010
ITT Educational Services, Inc.*		7,175		37,884
K12, Inc.*		9,100		147,147
LifeLock, Inc.*		1,750		25,568
Regis Corp.*		12,250		202,370
Service Corp. International		8,575		237,356
ServiceMaster Global Holdings, Inc.*		700		24,192
Sotheby’s		3,675		156,959
Steiner Leisure Ltd.*		2,800		135,072
Strayer Education, Inc.*		1,400		71,008
Weight Watchers International, Inc.*		10,325		88,279
				3,050,333
Diversified Financial Services – 1.2%
Berkshire Hathaway, Inc., Class B*		39,025		5,510,720
CBOE Holdings, Inc.		3,850		216,639
CME Group, Inc.		7,350		668,189
FNFV Group*		1,400		20,930
Gain Capital Holdings, Inc.		3,500		34,580
Intercontinental Exchange, Inc.		2,450		550,206
Leucadia National Corp.		9,625		228,791
MarketAxess Holdings, Inc.		2,975		255,404
McGraw Hill Financial, Inc.		5,250		547,575
Moody’s Corp.		4,025		432,768
MSCI, Inc.		2,275		139,207
The NASDAQ OMX Group, Inc.		1,750		85,103
PHH Corp.*		17,150		430,808
PICO Holdings, Inc.*		6,475		116,615
Voya Financial, Inc.		6,825		288,971
				9,526,506

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)
Diversified Telecommunication Services – 1.8%
8x8, Inc.*		6,475	$	56,527
AT&T, Inc.		154,000		5,334,560
Atlantic Tele-Network, Inc.		1,925		127,088
CenturyLink, Inc.		17,500		629,300
Cincinnati Bell, Inc.*		6,650		22,809
Cogent Communications Holdings, Inc.		2,975		104,095
Consolidated Communications Holdings, Inc.		2,450		51,621
FairPoint Communications, Inc.*		2,625		51,765
Frontier Communications Corp.		20,825		142,859
General Communication, Inc., Class A*		3,675		58,285
Globalstar, Inc.*		5,425		14,051
IDT Corp., Class B		2,625		44,704
inContact, Inc.*		4,200		43,470
Inteliquent, Inc.		1,925		36,594
Iridium Communications, Inc.*		22,050		224,249
Level 3 Communications, Inc.*		5,250		293,685
Lumos Networks Corp.		1,925		27,220
ORBCOMM, Inc.*		2,975		17,910
Premiere Global Services, Inc.*		14,175		144,727
Verizon Communications, Inc.		126,000		6,355,440
Vonage Holdings Corp.*		25,550		118,297
Windstream Holdings, Inc.		1,546		18,055
				13,917,311
Electric Utilities – 1.9%
ALLETE, Inc.		8,575		431,322
American Electric Power Co., Inc.		14,525		826,037
Cleco Corp.		5,075		275,826
Duke Energy Corp.		19,250		1,493,222
Edison International		8,225		501,231
El Paso Electric Co.		13,300		494,893
The Empire District Electric Co.		4,025		94,869
Entergy Corp.		6,125		472,727
Eversource Energy		8,750		426,650
Exelon Corp.		21,175		720,374
FirstEnergy Corp.		10,150		364,487
Great Plains Energy, Inc.		4,200		109,956
Hawaiian Electric Industries, Inc.		31,150		974,995
IDACORP, Inc.		15,925		960,755


	Shares		Value
Electric Utilities – (continued)
ITC Holdings Corp.		2,450	$	88,200
MGE Energy, Inc.		3,150		130,662
NextEra Energy, Inc.		9,275		936,126
NRG Yield, Inc., Class A		1,225		60,270
OGE Energy Corp.		7,525		245,917
Otter Tail Corp.		3,150		94,217
Pepco Holdings, Inc.		7,175		186,407
Pinnacle West Capital Corp.		2,625		160,650
PNM Resources, Inc.		26,775		743,810
Portland General Electric Co.		21,350		750,666
PPL Corp.		20,475		696,764
The Southern Co.		29,575		1,310,173
UIL Holdings Corp.		17,500		872,900
Unitil Corp.		2,800		95,760
Westar Energy, Inc.		2,800		105,420
Xcel Energy, Inc.		13,475		456,937
				15,082,223
Electrical Equipment – 0.7%
Acuity Brands, Inc.		1,750		292,163
AMETEK, Inc.		3,850		201,817
AZZ, Inc.		1,400		64,946
The Babcock & Wilcox Co.		4,375		141,400
Capstone Turbine Corp.*		45,850		28,803
Eaton Corp. PLC		13,475		926,137
Emerson Electric Co.		11,200		658,896
Encore Wire Corp.		1,225		55,137
EnerSys		4,900		332,710
Enphase Energy, Inc.*		1,750		21,998
Franklin Electric Co., Inc.		2,275		82,264
FuelCell Energy, Inc.*		7,700		9,471
Generac Holdings, Inc.*		20,825		868,194
General Cable Corp.		17,675		288,279
GrafTech International Ltd.*		45,325		219,373
Hubbell, Inc., Class B		700		76,181
Plug Power, Inc.*		8,050		20,447
Polypore International, Inc.*		2,800		163,968
Powell Industries, Inc.		525		17,425
Power Solutions International, Inc.*		350		22,330
PowerSecure International, Inc.*		5,600		73,416
Regal Beloit Corp.		1,925		150,535
Rockwell Automation, Inc.		2,450		290,570

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)
Electrical Equipment – (continued)
Sensata Technologies Holding N.V.*		2,450	$	135,264
SolarCity Corp.*		1,225		73,561
TCP International Holdings Ltd.*		2,975		11,097
Thermon Group Holdings, Inc.*		875		20,361
				5,246,743
Electronic Equipment, Instruments & Components – 1.4%
Amphenol Corp., Class A		6,475		358,521
Anixter International, Inc.*		6,300		444,780
Arrow Electronics, Inc.*		2,275		135,840
Avnet, Inc.		3,675		156,665
AVX Corp.		14,525		200,009
Badger Meter, Inc.		1,225		76,219
Belden, Inc.		3,500		293,825
Benchmark Electronics, Inc.*		16,275		382,951
CDW Corp.		1,050		40,236
Checkpoint Systems, Inc.		875		9,065
Cognex Corp.*		6,475		290,663
Coherent, Inc.*		1,575		94,500
Corning, Inc.		25,200		527,436
CTS Corp.		5,950		106,743
Daktronics, Inc.		1,225		13,144
Dolby Laboratories, Inc., Class A		875		35,227
DTS, Inc.*		350		12,547
Electro Scientific Industries, Inc.		10,150		57,855
Fabrinet*		8,575		155,293
FARO Technologies, Inc.*		875		34,851
FEI Co.		2,275		171,671
Flextronics International Ltd.*		12,775		147,232
FLIR Systems, Inc.		2,975		91,898
GSI Group, Inc.*		2,625		34,860
II-VI, Inc.*		1,575		28,019
Ingram Micro, Inc., Class A*		9,800		246,568
Insight Enterprises, Inc.*		12,425		355,604
InvenSense, Inc.*		4,025		60,053
IPG Photonics Corp.*		2,450		217,021
Itron, Inc.*		1,225		43,929
Jabil Circuit, Inc.		1,750		39,410
Knowles Corp.*		27,125		519,986
Littelfuse, Inc.		1,575		154,334
Maxwell Technologies, Inc.*		1,050		5,880


	Shares		Value
Electronic Equipment, Instruments & Components – (continued)
Mercury Systems, Inc.*		2,975	$	41,085
Mesa Laboratories, Inc.		175		14,856
Methode Electronics, Inc.		2,975		126,319
MTS Systems Corp.		1,050		74,109
National Instruments Corp.		1,575		45,045
Newport Corp.*		3,675		70,082
OSI Systems, Inc.*		1,225		82,332
Park Electrochemical Corp.		875		19,005
PC Connection, Inc.		3,325		80,764
Plexus Corp.*		9,975		429,424
RealD, Inc.*		3,675		45,129
Rofin-Sinar Technologies, Inc.*		1,225		28,984
Rogers Corp.*		1,400		101,794
Sanmina Corp.*		27,300		555,009
ScanSource, Inc.*		8,750		348,688
SYNNEX Corp.		8,400		642,600
TE Connectivity Ltd.		8,575		570,666
Tech Data Corp.*		12,775		720,127
Trimble Navigation Ltd.*		4,900		124,607
TTM Technologies, Inc.*		14,525		135,809
Universal Display Corp.*		1,400		61,698
Vishay Intertechnology, Inc.		42,175		534,779
Zebra Technologies Corp., Class A*		4,550		418,964
				10,814,710
Energy Equipment & Services – 1.9%
Atwood Oceanics, Inc.		20,125		671,772
Baker Hughes, Inc.		13,125		898,537
Basic Energy Services, Inc.*		3,325		33,882
Bristow Group, Inc.		9,800		608,874
C&J Energy Services Ltd.*		9,100		158,795
Cameron International Corp.*		6,650		364,553
CARBO Ceramics, Inc.		4,900		216,727
Core Laboratories N.V.		1,050		137,844
Diamond Offshore Drilling, Inc.		1,925		64,430
Dresser-Rand Group, Inc.*		1,225		101,271
Dril-Quip, Inc.*		1,225		97,657
Ensco PLC, Class A		10,150		276,892
Era Group, Inc.*		1,575		34,933
Exterran Holdings, Inc.		5,250		194,617
FMC Technologies, Inc.*		4,550		200,655

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)
Energy Equipment & Services – (continued)
Forum Energy Technologies, Inc.*		17,150	$	398,909
Frank’s International N.V.		10,150		211,120
Geospace Technologies Corp.*		4,900		105,840
Gulfmark Offshore, Inc., Class A		11,375		170,739
Halliburton Co.		16,450		805,227
Helix Energy Solutions Group, Inc.*		7,000		115,360
Helmerich & Payne, Inc.		3,325		259,250
Hercules Offshore, Inc.*		64,400		51,848
Hornbeck Offshore Services, Inc.*		11,725		267,916
ION Geophysical Corp.*		3,675		8,379
Key Energy Services, Inc.*		50,050		122,122
Matrix Service Co.*		8,050		176,858
Nabors Industries Ltd.		10,150		169,505
National Oilwell Varco, Inc.		8,575		466,566
Natural Gas Services Group, Inc.*		875		22,181
Newpark Resources, Inc.*		25,375		260,348
Noble Corp. PLC		11,725		202,960
Nuverra Environmental Solutions, Inc.*		7,350		29,841
Oceaneering International, Inc.		2,800		154,308
Oil States International, Inc.*		17,500		832,825
Parker Drilling Co.*		38,675		145,031
Patterson-UTI Energy, Inc.		48,125		1,075,594
PHI, Inc. (Non-Voting)*		3,675		115,138
Pioneer Energy Services Corp.*		6,650		49,543
RigNet, Inc.*		525		19,667
RPC, Inc.		4,900		77,959
Schlumberger Ltd.		27,825		2,632,523
SEACOR Holdings, Inc.*		875		63,578
Superior Energy Services, Inc.		5,600		142,800
Tesco Corp.		13,125		168,788
TETRA Technologies, Inc.*		27,300		197,106
Tidewater, Inc.		16,625		460,346
Unit Corp.*		17,500		609,700
Weatherford International PLC*		26,600		387,030
				15,038,344
Food & Staples Retailing – 1.6%
The Andersons, Inc.		6,825		291,359


	Shares		Value
Food & Staples Retailing – (continued)
Casey’s General Stores, Inc.		2,800	$	230,104
The Chefs’ Warehouse, Inc.*		525		9,560
Costco Wholesale Corp.		9,975		1,426,924
CVS Health Corp.		24,850		2,467,356
Diplomat Pharmacy, Inc.*		525		18,805
The Fresh Market, Inc.*		2,275		79,943
Ingles Markets, Inc., Class A		2,625		109,882
The Kroger Co.		12,075		832,088
PriceSmart, Inc.		875		70,403
Rite Aid Corp.*		43,575		335,963
SpartanNash Co.		9,275		279,827
Sprouts Farmers Market, Inc.*		1,575		50,376
SUPERVALU, Inc.*		51,100		449,169
Sysco Corp.		11,725		434,177
United Natural Foods, Inc.*		3,325		224,305
Walgreens Boots Alliance, Inc.		18,550		1,538,352
Wal-Mart Stores, Inc.		45,150		3,523,958
Weis Markets, Inc.		1,750		77,613
Whole Foods Market, Inc.		5,600		267,456
				12,717,620
Food Products – 1.4%
Archer-Daniels-Midland Co.		15,575		761,306
B&G Foods, Inc.		2,275		69,160
Boulder Brands, Inc.*		1,750		16,695
Bunge Ltd.		4,200		362,754
Calavo Growers, Inc.		1,400		70,910
Cal-Maine Foods, Inc.		8,400		375,564
Campbell Soup Co.		3,500		156,485
ConAgra Foods, Inc.		10,850		392,227
Darling Ingredients, Inc.*		11,375		155,382
Dean Foods Co.		25,550		415,187
Diamond Foods, Inc.*		2,625		73,605
Flowers Foods, Inc.		1,750		39,095
Fresh Del Monte Produce, Inc.		9,275		342,526
General Mills, Inc.		11,900		658,546
The Hain Celestial Group, Inc.*		4,725		284,634
The Hershey Co.		2,450		225,204
Hormel Foods Corp.		2,800		152,180
Ingredion, Inc.		1,400		111,160
J&J Snack Foods Corp.		1,225		127,804
The JM Smucker Co.		2,450		284,004
Kellogg Co.		4,900		310,317

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)
Food Products – (continued)
Keurig Green Mountain, Inc.		2,100	$	244,377
Kraft Foods Group, Inc.		12,950		1,097,512
Lancaster Colony Corp.		1,400		125,524
Landec Corp.*		2,275		32,328
McCormick & Co., Inc. (Non-Voting)		2,450		184,485
Mead Johnson Nutrition Co.		4,025		386,078
Mondelez International, Inc., Class A		35,000		1,342,950
Omega Protein Corp.*		6,125		78,278
Pilgrim’s Pride Corp.		4,550		112,385
Pinnacle Foods, Inc.		4,550		184,503
Post Holdings, Inc.*		2,800		131,432
Sanderson Farms, Inc.		6,125		460,110
Snyder’s-Lance, Inc.		3,675		108,523
Tootsie Roll Industries, Inc.		2,100		65,069
TreeHouse Foods, Inc.*		2,625		213,308
Tyson Foods, Inc., Class A		8,750		345,625
The WhiteWave Foods Co.*		7,700		338,569
				10,835,801
Gas Utilities – 0.5%
AGL Resources, Inc.		3,500		175,945
Atmos Energy Corp.		2,625		141,750
Chesapeake Utilities Corp.		2,450		117,061
The Laclede Group, Inc.		12,250		636,142
National Fuel Gas Co.		1,400		90,230
New Jersey Resources Corp.		23,450		715,459
Northwest Natural Gas Co.		2,275		106,243
ONE Gas, Inc.		3,500		146,895
Piedmont Natural Gas Co., Inc.		4,900		183,456
Questar Corp.		2,800		65,632
South Jersey Industries, Inc.		2,100		110,775
Southwest Gas Corp.		4,025		221,375
UGI Corp.		4,550		158,386
WGL Holdings, Inc.		14,000		770,140
				3,639,489
Health Care Equipment & Supplies – 1.8%
Abaxis, Inc.		1,400		89,600
Abbott Laboratories		32,550		1,510,971
ABIOMED, Inc.*		2,450		154,889


	Shares		Value
Health Care Equipment & Supplies – (continued)
Accuray, Inc.*		4,025	$	32,723
Alere, Inc.*		8,050		382,214
Align Technology, Inc.*		3,500		205,940
Analogic Corp.		875		73,937
AngioDynamics, Inc.*		2,800		46,732
Anika Therapeutics, Inc.*		875		29,855
AtriCure, Inc.*		1,050		23,110
Baxter International, Inc.		11,025		757,858
Becton Dickinson and Co.		3,850		542,349
Boston Scientific Corp.*		25,725		458,419
C.R. Bard, Inc.		1,400		233,212
Cantel Medical Corp.		2,800		125,412
Cardiovascular Systems, Inc.*		1,400		43,820
Cerus Corp.*		4,025		17,871
CONMED Corp.		4,725		237,337
The Cooper Cos., Inc.		700		124,649
Cyberonics, Inc.*		1,750		106,592
Cynosure, Inc., Class A*		1,750		58,485
DENTSPLY International, Inc.		2,100		107,100
DexCom, Inc.*		5,075		342,918
Edwards Lifesciences Corp.*		2,450		310,292
Endologix, Inc.*		2,450		38,122
GenMark Diagnostics, Inc.*		175		1,680
Globus Medical, Inc., Class A*		4,900		117,061
Greatbatch, Inc.*		4,025		217,028
Haemonetics Corp.*		2,800		113,484
HeartWare International, Inc.*		700		52,997
Hill-Rom Holdings, Inc.		6,125		305,882
Hologic, Inc.*		6,475		218,466
ICU Medical, Inc.*		875		73,824
IDEXX Laboratories, Inc.*		1,050		131,638
Insulet Corp.*		2,800		83,580
Integra LifeSciences Holdings Corp.*		3,325		195,443
Intuitive Surgical, Inc.*		525		260,389
Invacare Corp.		2,800		56,196
Masimo Corp.*		3,850		129,976
Medtronic PLC		28,000		2,084,600
Merit Medical Systems, Inc.*		3,850		74,728
Natus Medical, Inc.*		2,625		98,989
Neogen Corp.*		2,275		101,329
NuVasive, Inc.*		3,500		156,555
NxStage Medical, Inc.*		3,850		70,571

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)
Health Care Equipment & Supplies – (continued)
OraSure Technologies, Inc.*		1,575	$	9,923
Orthofix International N.V.*		4,725		152,665
Quidel Corp.*		1,225		28,543
ResMed, Inc.		2,625		167,843
Rockwell Medical, Inc.*		1,750		16,993
RTI Surgical, Inc.*		8,050		45,080
Sirona Dental Systems, Inc.*		1,225		113,619
The Spectranetics Corp.*		3,500		89,775
St. Jude Medical, Inc.		5,075		355,504
STAAR Surgical Co.*		1,225		10,841
STERIS Corp.		5,075		337,488
Stryker Corp.		5,775		532,686
SurModics, Inc.*		875		22,068
Symmetry Surgical, Inc.*		1,925		14,880
Tandem Diabetes Care, Inc.*		5,600		74,760
Teleflex, Inc.		2,100		258,216
Thoratec Corp.*		175		7,019
Tornier N.V.*		2,625		67,909
Unilife Corp.*		6,300		21,105
Varian Medical Systems, Inc.*		1,750		155,488
Vascular Solutions, Inc.*		1,925		61,716
West Pharmaceutical Services, Inc.		5,075		270,396
Wright Medical Group, Inc.*		2,275		57,717
Zeltiq Aesthetics, Inc.*		525		16,118
Zimmer Holdings, Inc.		3,325		365,218
				13,852,393
Health Care Providers & Services – 2.8%
Acadia Healthcare Co., Inc.*		3,150		215,775
Aceto Corp.		3,850		74,613
Addus HomeCare Corp.*		875		23,485
Aetna, Inc.		8,750		935,112
Air Methods Corp.*		1,925		87,972
Alliance HealthCare Services, Inc.*		3,150		67,000
Almost Family, Inc.*		1,750		75,740
Amedisys, Inc.*		4,550		126,535
AmerisourceBergen Corp.		4,025		460,057
AMN Healthcare Services, Inc.*		5,600		127,736
Amsurg Corp.*		13,125		823,200
Anthem, Inc.		6,825		1,030,097


	Shares		Value
Health Care Providers & Services – (continued)
Bio-Reference Laboratories, Inc.*		2,275	$	75,348
BioScrip, Inc.*		8,400		39,480
BioTelemetry, Inc.*		2,100		16,821
Brookdale Senior Living, Inc.*		7,000		253,610
Capital Senior Living Corp.*		2,275		59,537
Cardinal Health, Inc.		7,350		619,899
Centene Corp.*		6,125		379,689
Chemed Corp.		2,275		262,194
Cigna Corp.		5,600		697,984
Civitas Solutions, Inc.*		1,400		26,250
Community Health Systems, Inc.*		3,675		197,274
CorVel Corp.*		700		25,018
DaVita HealthCare Partners, Inc.*		3,500		283,850
The Ensign Group, Inc.		3,150		132,646
Envision Healthcare Holdings, Inc.*		2,275		86,359
ExamWorks Group, Inc.*		3,675		150,491
Express Scripts Holding Co.*		21,000		1,814,400
Five Star Quality Care, Inc.*		15,750		66,937
Hanger, Inc.*		10,675		238,479
HCA Holdings, Inc.*		7,700		569,877
Health Net, Inc.*		21,700		1,142,505
HealthSouth Corp.		6,825		308,626
Healthways, Inc.*		4,375		76,125
Henry Schein, Inc.*		1,750		239,925
Humana, Inc.		2,975		492,660
IPC Healthcare, Inc.*		525		25,683
Kindred Healthcare, Inc.		26,775		614,486
Laboratory Corp. of America Holdings*		2,275		271,999
LHC Group, Inc.*		2,625		84,158
LifePoint Hospitals, Inc.*		12,600		943,488
Magellan Health, Inc.*		6,475		409,868
McKesson Corp.		4,900		1,094,660
MEDNAX, Inc.*		3,675		260,117
Molina Healthcare, Inc.*		3,150		186,575
National HealthCare Corp.		2,275		144,008
Omnicare, Inc.		1,925		169,362
Owens & Minor, Inc.		16,975		572,397
Patterson Cos., Inc.		2,625		123,257
PharMerica Corp.*		9,100		260,806
The Providence Service Corp.*		2,100		89,292
Quest Diagnostics, Inc.		3,675		262,469

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)
Health Care Providers & Services – (continued)
Select Medical Holdings Corp.		29,225	$	425,224
Team Health Holdings, Inc.*		2,625		156,371
Tenet Healthcare Corp.*		2,275		108,882
Triple-S Management Corp., Class B*		7,000		131,040
U.S. Physical Therapy, Inc.		1,050		49,518
UnitedHealth Group, Inc.		20,825		2,319,905
Universal American Corp.*		5,775		57,692
Universal Health Services, Inc., Class B		1,225		143,264
VCA, Inc.*		4,725		240,833
WellCare Health Plans, Inc.*		3,325		257,455
				21,706,115
Health Care Technology – 0.2%
Allscripts Healthcare Solutions, Inc.*		8,225		109,392
athenahealth, Inc.*		1,050		128,793
Cerner Corp.*		7,700		552,937
Computer Programs & Systems, Inc.		175		9,158
HealthStream, Inc.*		525		15,194
HMS Holdings Corp.*		525		8,930
IMS Health Holdings, Inc.*		1,400		38,626
MedAssets, Inc.*		3,500		70,840
Medidata Solutions, Inc.*		3,675		196,355
Omnicell, Inc.*		3,150		111,920
Veeva Systems, Inc., Class A*		1,050		27,878
Vocera Communications, Inc.*		3,675		41,858
				1,311,881
Hotels, Restaurants & Leisure – 1.8%
Aramark		1,750		53,777
Belmond Ltd., Class A*		3,500		43,120
BJ’s Restaurants, Inc.*		1,925		90,090
Bloomin’ Brands, Inc.		37,100		840,686
Bob Evans Farms, Inc.		1,225		52,699
Boyd Gaming Corp.*		17,150		226,380
Bravo Brio Restaurant Group, Inc.*		4,200		61,866
Brinker International, Inc.		5,250		290,692
Buffalo Wild Wings, Inc.*		1,400		223,020


	Shares		Value
Hotels, Restaurants & Leisure – (continued)
Caesars Entertainment Corp.*		13,650	$	129,538
Carnival Corp.		9,450		415,516
The Cheesecake Factory, Inc.		2,800		140,364
Chipotle Mexican Grill, Inc.*		525		326,203
Choice Hotels International, Inc.		2,625		157,159
Churchill Downs, Inc.		875		104,274
Cracker Barrel Old Country Store, Inc.		2,275		301,392
Darden Restaurants, Inc.		3,150		200,875
Denny’s Corp.*		10,150		105,662
Diamond Resorts International, Inc.*		2,625		84,026
DineEquity, Inc.		1,225		118,127
Domino’s Pizza, Inc.		2,625		283,106
Dunkin’ Brands Group, Inc.		2,100		109,431
El Pollo Loco Holdings, Inc.*		525		13,745
Fiesta Restaurant Group, Inc.*		1,575		79,616
Hilton Worldwide Holdings, Inc.*		6,300		182,448
Hyatt Hotels Corp., Class A*		875		50,794
International Speedway Corp., Class A		1,400		50,904
Interval Leisure Group, Inc.		2,100		52,059
Isle of Capri Casinos, Inc.*		2,800		39,816
Jack in the Box, Inc.		3,325		288,510
Jamba, Inc.*		175		2,758
Krispy Kreme Doughnuts, Inc.*		3,850		68,530
La Quinta Holdings, Inc.*		700		16,856
Las Vegas Sands Corp.		7,175		379,414
Life Time Fitness, Inc.*		10,675		763,263
The Marcus Corp.		3,850		74,575
Marriott International, Inc., Class A		4,725		378,236
Marriott Vacations Worldwide Corp.		2,975		244,575
McDonald’s Corp.		20,300		1,959,965
MGM Resorts International*		6,825		144,349
Morgans Hotel Group Co.*		1,925		13,186
Norwegian Cruise Line Holdings Ltd.*		2,450		118,849
Panera Bread Co., Class A*		350		63,868
Papa John’s International, Inc.		2,800		171,836
Penn National Gaming, Inc.*		5,425		87,234
Pinnacle Entertainment, Inc.*		4,200		154,392
Popeyes Louisiana Kitchen, Inc.*		1,575		87,696

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)
Hotels, Restaurants & Leisure – (continued)
Potbelly Corp.*		700	$	10,507
Red Robin Gourmet Burgers, Inc.*		1,050		78,845
Royal Caribbean Cruises Ltd.		2,275		154,836
Ruby Tuesday, Inc.*		19,600		142,688
Ruth’s Hospitality Group, Inc.		3,150		45,833
Scientific Games Corp., Class A*		14,525		184,032
SeaWorld Entertainment, Inc.		1,575		33,390
Six Flags Entertainment Corp.		2,800		131,656
Sonic Corp.		4,375		125,344
Starbucks Corp.		31,850		1,579,123
Starwood Hotels & Resorts Worldwide, Inc.		3,150		270,743
Texas Roadhouse, Inc.		4,375		147,000
Vail Resorts, Inc.		2,450		243,065
The Wendy’s Co.		16,625		168,245
Wyndham Worldwide Corp.		2,625		224,175
Wynn Resorts Ltd.		1,575		174,935
Yum! Brands, Inc.		8,225		707,021
				14,266,915
Household Durables – 1.1%
Beazer Homes USA, Inc.*		7,350		128,698
Cavco Industries, Inc.*		525		34,424
Dr. Horton, Inc.		9,625		244,475
Ethan Allen Interiors, Inc.		875		21,192
Flexsteel Industries, Inc.		1,575		56,716
Garmin Ltd.		2,450		110,715
GoPro, Inc., Class A*		525		26,292
Harman International Industries, Inc.		1,400		182,532
Helen of Troy Ltd.*		7,700		674,597
Hovnanian Enterprises, Inc., Class A*		51,100		159,432
iRobot Corp.*		1,750		56,735
Jarden Corp.*		3,325		170,173
KB Home		25,200		365,148
La-Z-Boy, Inc.		4,375		114,669
Leggett & Platt, Inc.		2,100		89,187
Lennar Corp., Class A		4,025		184,345
LGI Homes, Inc.*		4,200		69,174
Libbey, Inc.		5,775		227,246
M/I Homes, Inc.*		6,650		150,024
MDC Holdings, Inc.		13,125		352,275
Meritage Homes Corp.*		10,850		464,054
Mohawk Industries, Inc.*		1,750		303,625


	Shares		Value
Household Durables – (continued)
NACCO Industries, Inc., Class A		1,400	$	68,572
Newell Rubbermaid, Inc.		5,600		213,528
NVR, Inc.*		175		232,136
PulteGroup, Inc.		7,875		151,988
The Ryland Group, Inc.		14,350		591,507
Skullcandy, Inc.*		3,850		41,619
Standard Pacific Corp.*		40,950		331,695
Taylor Morrison Home Corp., Class A*		10,150		187,978
Tempur Sealy International, Inc.*		4,025		245,163
Toll Brothers, Inc.*		5,775		205,244
TRI Pointe Homes, Inc.*		44,975		642,243
Tupperware Brands Corp.		16,275		1,088,147
Universal Electronics, Inc.*		2,450		132,153
WCI Communities, Inc.*		3,675		85,444
Whirlpool Corp.		2,100		368,760
William Lyon Homes, Class A*		3,500		75,775
ZAGG, Inc.*		7,000		58,310
				8,905,990
Household Products – 1.1%
Central Garden & Pet Co., Class A*		8,400		82,320
Church & Dwight Co., Inc.		2,975		241,481
The Clorox Co.		2,800		297,080
Colgate-Palmolive Co.		18,200		1,224,496
Energizer Holdings, Inc.		1,225		167,359
HRG Group, Inc.*		32,550		407,851
Kimberly-Clark Corp.		7,350		806,222
The Procter & Gamble Co.		58,275		4,633,445
Spectrum Brands Holdings, Inc.		1,925		176,003
WD-40 Co.		1,225		99,176
				8,135,433
Independent Power and Renewable Electricity Producers – 0.2%
AES Corp.		12,600		166,950
Calpine Corp.*		6,475		141,220
Dynegy, Inc.*		33,250		1,106,227
NRG Energy, Inc.		11,550		291,522
Ormat Technologies, Inc.		2,625		96,049
Pattern Energy Group, Inc.		1,575		45,644
				1,847,612
Industrial Conglomerates – 1.5%
3M Co.		13,650		2,134,723

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)
Industrial Conglomerates – (continued)
Carlisle Cos., Inc.		1,400	$	135,100
Danaher Corp.		12,425		1,017,359
General Electric Co.		305,025		8,260,077
Raven Industries, Inc.		1,400		27,916
Roper Technologies, Inc.		2,275		382,587
				11,957,762
Insurance – 4.4%
ACE Ltd.		11,025		1,179,565
Aflac, Inc.		15,050		948,752
Alleghany Corp.*		350		165,732
Allied World Assurance Co. Holdings AG		2,275		93,593
The Allstate Corp.		11,900		828,954
Ambac Financial Group, Inc.*		4,025		92,615
American Equity Investment Life Holding Co.		21,700		584,815
American Financial Group, Inc.		1,225		77,420
American International Group, Inc.		43,575		2,452,837
American National Insurance Co.		2,625		262,657
AMERISAFE, Inc.		1,575		71,174
AmTrust Financial Services, Inc.		9,625		572,399
Aon PLC		6,475		623,089
Arch Capital Group Ltd.*		4,375		265,475
Argo Group International Holdings Ltd.		8,575		420,089
Arthur J Gallagher & Co.		1,750		83,703
Aspen Insurance Holdings Ltd.		21,000		981,330
Assurant, Inc.		2,275		139,821
Assured Guaranty Ltd.		7,700		200,123
Axis Capital Holdings Ltd.		3,325		173,099
Brown & Brown, Inc.		3,325		106,234
The Chubb Corp.		7,700		757,295
Cincinnati Financial Corp.		4,550		230,412
CNA Financial Corp.		3,850		155,155
CNO Financial Group, Inc.		15,400		261,800
Employers Holdings, Inc.		2,800		68,348
Endurance Specialty Holdings Ltd.		13,825		834,753
Enstar Group Ltd.*		3,325		472,283
Erie Indemnity Co., Class A		350		28,962
Everest Re Group Ltd.		1,400		250,474


	Shares		Value
Insurance – (continued)
FBL Financial Group, Inc., Class A		2,800	$	163,156
Federated National Holding Co.		3,325		95,760
Fidelity & Guaranty Life		5,250		117,495
First American Financial Corp.		31,850		1,108,061
FNF Group		6,650		239,333
Genworth Financial, Inc., Class A*		21,350		187,667
Greenlight Capital Re Ltd., Class A*		10,850		329,731
The Hanover Insurance Group, Inc.		13,300		911,981
The Hartford Financial Services Group, Inc.		11,025		449,489
HCC Insurance Holdings, Inc.		1,575		89,712
HCI Group, Inc.		2,450		106,771
Horace Mann Educators Corp.		11,725		398,298
Infinity Property & Casualty Corp.		2,275		168,691
Kemper Corp.		16,100		606,487
Lincoln National Corp.		7,000		395,430
Loews Corp.		13,300		553,812
Maiden Holdings Ltd.		15,750		228,847
Markel Corp.*		350		259,224
Marsh & McLennan Cos., Inc.		11,550		648,648
MBIA, Inc.*		54,075		473,156
Meadowbrook Insurance Group, Inc.		16,275		138,989
Mercury General Corp.		11,025		605,714
MetLife, Inc.		30,275		1,552,805
Montpelier Re Holdings Ltd.		12,600		480,186
National Western Life Insurance Co., Class A		875		209,659
The Navigators Group, Inc.*		2,625		204,881
Old Republic International Corp.		15,225		232,790
OneBeacon Insurance Group Ltd., Class A		10,675		160,979
PartnerRe Ltd.		2,275		291,200
The Phoenix Cos., Inc.*		1,575		53,723
Primerica, Inc.		5,600		258,832
Principal Financial Group, Inc.		6,650		339,948
ProAssurance Corp.		2,800		125,860
The Progressive Corp.		15,575		415,230
Prudential Financial, Inc.		14,700		1,199,520
Reinsurance Group of America, Inc.		1,050		96,201

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)
Insurance – (continued)
RenaissanceRe Holdings Ltd.		1,575	$	161,422
RLI Corp.		2,975		147,739
Safety Insurance Group, Inc.		3,150		183,173
Selective Insurance Group, Inc.		15,050		405,447
StanCorp Financial Group, Inc.		12,950		933,436
Stewart Information Services Corp.		2,975		108,588
Symetra Financial Corp.		29,925		710,719
Third Point Reinsurance Ltd.*		19,075		257,131
Torchmark Corp.		3,850		216,024
The Travelers Cos., Inc.		10,150		1,026,267
United Fire Group, Inc.		5,775		172,499
United Insurance Holdings Corp.		3,850		64,026
Universal Insurance Holdings, Inc.		7,525		180,751
Unum Group		5,425		185,318
Validus Holdings Ltd.		26,425		1,105,358
W.R. Berkley Corp.		2,450		120,025
White Mountains Insurance Group Ltd.		175		118,295
Willis Group Holdings PLC		4,550		221,266
XL Group PLC		6,475		240,093
				33,838,801
Internet & Catalog Retail – 0.9%
Amazon.com, Inc.*		8,050		3,395,329
EVINE Live, Inc.*		5,250		31,290
Expedia, Inc.		2,100		197,883
FTD Cos., Inc.*		700		19,978
Groupon, Inc.*		8,750		60,550
HomeAway, Inc.*		4,025		112,499
HSN, Inc.		1,575		98,311
Lands’ End, Inc.*		1,750		51,415
Liberty Interactive Corp., Class A*		11,200		322,112
Liberty TripAdvisor Holdings, Inc., Class A*		3,500		103,985
Netflix, Inc.*		1,225		681,712
Nutrisystem, Inc.		3,150		60,008
Orbitz Worldwide, Inc.*		2,625		30,765
Overstock.com, Inc.*		2,100		45,087
PetMed Express, Inc.		700		11,081
The Priceline Group, Inc.*		1,050		1,299,701
Shutterfly, Inc.*		1,400		62,664


	Shares		Value
Internet & Catalog Retail – (continued)
TripAdvisor, Inc.*		2,275	$	183,115
Wayfair, Inc., Class A*		3,325		106,799
				6,874,284
Internet Software & Services – 2.3%
Akamai Technologies, Inc.*		3,150		232,407
Angie’s List, Inc.*		11,375		66,771
AOL, Inc.*		3,675		146,632
Bankrate, Inc.*		14,875		184,450
Benefitfocus, Inc.*		350		12,092
Blucora, Inc.*		13,125		179,419
Brightcove, Inc.*		175		1,211
Carbonite, Inc.*		700		7,168
ChannelAdvisor Corp.*		1,225		12,532
Cimpress N.V.*		2,450		205,653
comScore, Inc.*		2,450		128,282
Constant Contact, Inc.*		2,100		73,185
Cornerstone OnDemand, Inc.*		1,750		50,102
CoStar Group, Inc.*		1,400		286,202
Dealertrack Technologies, Inc.*		2,450		96,309
Demandware, Inc.*		1,750		107,800
DHI Group, Inc.*		4,375		33,250
EarthLink Holdings Corp.		33,425		158,100
eBay, Inc.*		23,275		1,356,001
Endurance International Group Holdings, Inc.*		1,925		35,304
Envestnet, Inc.*		1,925		98,675
Equinix, Inc. (REIT)		1,400		358,302
Facebook, Inc., Class A*		43,225		3,404,833
Gogo, Inc.*		1,575		33,295
Google, Inc., Class A*		5,600		3,073,112
Google, Inc., Class C*		6,650		3,573,311
IAC/InterActiveCorp		1,050		73,311
Internap Corp.*		2,975		27,965
Intralinks Holdings, Inc.*		5,250		51,450
j2 Global, Inc.		4,725		327,773
LendingClub Corp.*		1,575		27,484
LinkedIn Corp., Class A*		2,100		529,473
Liquidity Services, Inc.*		7,000		65,520
LivePerson, Inc.*		350		3,290
LogMeIn, Inc.*		1,575		101,083
Marketo, Inc.*		875		24,894
MercadoLibre, Inc.		350		49,815

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)
Internet Software & Services – (continued)
Millennial Media, Inc.*		19,250	$	29,837
Monster Worldwide, Inc.*		26,950		158,736
NIC, Inc.		2,625		44,625
Pandora Media, Inc.*		4,900		87,416
Perficient, Inc.*		8,925		184,123
Rackspace Hosting, Inc.*		1,925		103,758
RetailMeNot, Inc.*		1,225		22,516
Rocket Fuel, Inc.*		8,050		64,481
SciQuest, Inc.*		350		5,380
Shutterstock, Inc.*		700		47,243
SPS Commerce, Inc.*		700		45,682
Stamps.com, Inc.*		1,050		64,985
Textura Corp.*		175		4,580
Twitter, Inc.*		10,325		402,262
VeriSign, Inc.*		2,625		166,714
Web.com Group, Inc.*		15,575		286,113
WebMD Health Corp.*		3,500		154,525
XO Group, Inc.*		2,275		36,992
Xoom Corp.*		1,750		30,923
Yahoo!, Inc.*		19,600		834,274
Yelp, Inc.*		1,050		41,360
Zillow Group, Inc., Class A*		1,225		119,609
				18,132,590
IT Services – 2.9%
Accenture PLC, Class A		12,775		1,183,604
Acxiom Corp.*		3,675		64,165
Alliance Data Systems Corp.*		1,050		312,175
Automatic Data Processing, Inc.		11,200		946,848
Blackhawk Network Holdings, Inc.*		2,975		109,391
Booz Allen Hamilton Holding Corp.		9,275		255,062
Broadridge Financial Solutions, Inc.		2,450		132,104
CACI International, Inc., Class A*		7,175		633,122
Cardtronics, Inc.*		2,800		105,644
Cass Information Systems, Inc.		525		27,442
Ciber, Inc.*		2,975		10,502
Cognizant Technology Solutions Corp., Class A*		12,775		747,848
Computer Sciences Corp.		3,500		225,575


	Shares		Value
IT Services – (continued)
Convergys Corp.		26,775	$	607,257
CoreLogic, Inc.*		6,300		246,393
CSG Systems International, Inc.		9,275		270,088
Datalink Corp.*		2,100		24,276
DST Systems, Inc.		2,100		241,668
EPAM Systems, Inc.*		1,750		113,242
Euronet Worldwide, Inc.*		3,500		204,680
EVERTEC, Inc.		3,675		76,183
ExlService Holdings, Inc.*		1,050		36,151
Fidelity National Information Services, Inc.		5,950		371,815
Fiserv, Inc.*		5,950		461,720
FleetCor Technologies, Inc.*		1,575		253,402
Forrester Research, Inc.		350		12,176
Gartner, Inc.*		1,750		145,215
Genpact Ltd.*		5,775		126,241
Global Cash Access Holdings, Inc.*		18,375		135,975
Global Payments, Inc.		1,225		122,843
Heartland Payment Systems, Inc.		2,275		115,797
IGATE Corp.*		4,375		208,075
International Business Machines Corp.		25,725		4,406,435
Jack Henry & Associates, Inc.		1,750		116,393
Leidos Holdings, Inc.		19,600		816,144
Lionbridge Technologies, Inc.*		14,525		80,614
ManTech International Corp., Class A		5,775		168,803
MasterCard, Inc., Class A		20,825		1,878,623
MAXIMUS, Inc.		5,250		336,053
MoneyGram International, Inc.*		8,400		65,100
Net 1 UEPS Technologies, Inc.*		11,900		162,673
NeuStar, Inc., Class A*		15,925		477,750
Paychex, Inc.		7,875		381,071
Science Applications International Corp.		3,850		192,885
ServiceSource International, Inc.*		11,025		39,359
Sykes Enterprises, Inc.*		10,850		271,576
Syntel, Inc.*		2,275		102,421
TeleTech Holdings, Inc.		4,025		104,409
Teradata Corp.*		2,100		92,379
Total System Services, Inc.		4,375		173,075
Unisys Corp.*		9,450		205,727

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)
IT Services – (continued)
Vantiv, Inc., Class A*		2,625	$	102,638
VeriFone Systems, Inc.*		6,475		231,611
Virtusa Corp.*		1,575		62,685
Visa, Inc., Class A		41,650		2,750,983
The Western Union Co.		15,400		312,312
WEX, Inc.*		1,400		157,794
Xerox Corp.		34,475		396,463
				22,612,655
Leisure Products – 0.2%
Arctic Cat, Inc.		3,675		130,426
Black Diamond, Inc.*		7,350		66,223
Brunswick Corp.		4,725		236,439
Callaway Golf Co.		5,950		57,596
Hasbro, Inc.		2,625		185,824
LeapFrog Enterprises, Inc.*		24,150		54,579
Mattel, Inc.		5,950		167,552
Nautilus, Inc.*		350		5,884
Polaris Industries, Inc.		1,050		143,808
Smith & Wesson Holding Corp.*		16,450		244,529
Sturm Ruger & Co., Inc.		6,125		335,711
				1,628,571
Life Sciences Tools & Services – 0.5%
Accelerate Diagnostics, Inc.*		1,575		35,910
Affymetrix, Inc.*		7,525		91,278
Agilent Technologies, Inc.		7,875		325,789
Bio-Rad Laboratories, Inc., Class A*		525		70,586
Bio-Techne Corp.		2,625		251,895
Bruker Corp.*		4,375		82,950
Cambrex Corp.*		3,500		134,715
Charles River Laboratories International, Inc.*		4,200		290,472
Fluidigm Corp.*		1,925		72,110
Illumina, Inc.*		2,625		483,656
Mettler-Toledo International, Inc.*		700		221,907
NeoGenomics, Inc.*		3,675		16,648
Pacific Biosciences of California, Inc.*		175		903
PAREXEL International Corp.*		3,675		233,638
PerkinElmer, Inc.		1,750		89,705


	Shares		Value
Life Sciences Tools & Services – (continued)
Quintiles Transnational Holdings, Inc.*		1,050	$	69,174
Sequenom, Inc.*		10,675		47,397
Thermo Fisher Scientific, Inc.		7,875		989,730
VWR Corp.*		6,125		162,558
Waters Corp.*		1,400		175,266
				3,846,287
Machinery – 2.3%
Accuride Corp.*		5,250		21,420
Actuant Corp., Class A		5,775		137,560
AGCO Corp.		2,625		135,214
Alamo Group, Inc.		700		43,246
Albany International Corp., Class A		3,150		123,480
Allison Transmission Holdings, Inc.		1,050		32,214
Altra Industrial Motion Corp.		1,575		41,533
American Railcar Industries, Inc.		2,625		139,230
Astec Industries, Inc.		1,400		58,912
Barnes Group, Inc.		6,650		266,665
Blount International, Inc.		13,650		180,999
Briggs & Stratton Corp.		11,200		218,960
Caterpillar, Inc.		15,575		1,353,156
Chart Industries, Inc.*		2,275		92,251
CIRCOR International, Inc.		1,925		105,182
CLARCOR, Inc.		3,675		238,875
Colfax Corp.*		2,100		104,139
Columbus McKinnon Corp.		2,100		53,256
Crane Co.		3,150		192,496
Cummins, Inc.		3,500		483,910
Deere & Co.		10,325		934,619
Donaldson Co., Inc.		1,400		52,318
Douglas Dynamics, Inc.		1,750		38,062
Dover Corp.		3,325		251,769
EnPro Industries, Inc.		1,400		89,614
ESCO Technologies, Inc.		1,225		44,957
Federal Signal Corp.		5,425		85,281
Flowserve Corp.		3,850		225,340
FreightCar America, Inc.		1,050		27,394
Global Brass & Copper Holdings, Inc.		4,900		74,676
The Gorman-Rupp Co.		1,400		37,954
Graco, Inc.		700		50,134

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)
Machinery – (continued)
Graham Corp.		350	$	8,190
The Greenbrier Cos., Inc.		2,450		141,340
Harsco Corp.		7,000		112,560
Hillenbrand, Inc.		15,050		442,319
Hyster-Yale Materials Handling, Inc.		2,975		218,186
IDEX Corp.		1,225		91,887
Illinois Tool Works, Inc.		8,050		753,319
Ingersoll-Rand PLC		6,125		403,270
ITT Corp.		5,600		222,040
John Bean Technologies Corp.		4,550		175,584
Joy Global, Inc.		1,575		67,158
Kadant, Inc.		2,800		142,688
Kennametal, Inc.		24,150		855,152
L.B. Foster Co., Class A		700		29,911
Lincoln Electric Holdings, Inc.		1,750		117,005
Lindsay Corp.		350		27,717
Lydall, Inc.*		3,325		89,243
The Manitowoc Co., Inc.		7,350		145,016
Meritor, Inc.*		30,800		404,096
The Middleby Corp.*		2,625		266,018
Mueller Industries, Inc.		14,875		521,220
Mueller Water Products, Inc., Class A		12,250		114,660
Navistar International Corp.*		3,850		115,346
NN, Inc.		3,150		79,254
Nordson Corp.		700		55,755
Oshkosh Corp.		4,025		216,706
PACCAR, Inc.		6,825		446,014
Pall Corp.		2,100		204,372
Parker-Hannifin Corp.		3,325		396,872
Pentair PLC		4,725		293,659
Proto Labs, Inc.*		700		49,000
RBC Bearings, Inc.		1,400		102,186
Rexnord Corp.*		3,675		97,351
Snap-on, Inc.		1,225		183,199
SPX Corp.		1,750		134,750
Standex International Corp.		1,575		127,370
Stanley Black & Decker, Inc.		4,025		397,268
Sun Hydraulics Corp.		1,750		68,093
Tennant Co.		1,225		78,755
Terex Corp.		33,600		922,656


	Shares		Value
Machinery – (continued)
The Timken Co.		2,800	$	110,012
Titan International, Inc.		13,300		138,187
The Toro Co.		4,375		293,300
TriMas Corp.*		14,700		414,099
Trinity Industries, Inc.		7,350		199,112
Valmont Industries, Inc.		700		88,214
Wabash National Corp.*		19,950		279,699
WABCO Holdings, Inc.*		1,225		152,451
Wabtec Corp.		2,100		197,505
Watts Water Technologies, Inc., Class A		1,925		105,009
Woodward, Inc.		4,550		214,078
Xylem, Inc.		2,625		97,178
				17,540,845
Marine – 0.0%^†
Eagle Bulk Shipping, Inc.*		8,575		71,858
Kirby Corp.*		1,225		96,199
Matson, Inc.		3,325		134,663
				302,720
Media – 2.6%
AMC Entertainment Holdings, Inc., Class A		3,325		99,949
AMC Networks, Inc., Class A*		1,400		105,616
Cablevision Systems Corp., Class A		4,550		90,909
Carmike Cinemas, Inc.*		2,975		89,785
CBS Corp. (Non-Voting), Class B		9,100		565,383
Central European Media Enterprises Ltd., Class A*		23,450		64,487
Charter Communications, Inc., Class A*		1,575		294,619
Cinemark Holdings, Inc.		4,200		179,046
Clear Channel Outdoor Holdings, Inc., Class A		15,400		175,252
Comcast Corp., Class A		53,725		3,103,156
CTC Media, Inc.		7,000		24,430
Cumulus Media, Inc., Class A*		2,275		5,187
DIRECTV*		14,875		1,349,237
Discovery Communications, Inc., Class A*		5,425		175,553
Discovery Communications, Inc., Class C*		1,750		52,902

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)
Media – (continued)
DISH Network Corp., Class A*		4,375	$	296,012
DreamWorks Animation SKG, Inc., Class A*		4,200		109,452
The E.W. Scripps Co., Class A		6,650		154,879
Entravision Communications Corp., Class A		16,450		107,583
Gannett Co., Inc.		3,150		108,108
Global Eagle Entertainment, Inc.*		10,675		136,320
Gray Television, Inc.*		16,275		215,806
Harte-Hanks, Inc.		8,225		55,848
The Interpublic Group of Cos., Inc.		7,700		160,468
John Wiley & Sons, Inc., Class A		4,900		278,712
Journal Media Group, Inc.*		1		6
Lee Enterprises, Inc.*		14,700		44,100
Liberty Media Corp.*		6,300		239,913
Lions Gate Entertainment Corp.		3,850		119,388
Live Nation Entertainment, Inc.*		8,575		214,889
Loral Space & Communications, Inc.*		700		48,300
The Madison Square Garden Co., Class A*		2,100		168,630
The McClatchy Co., Class A*		7,700		10,703
Media General, Inc.*		4,200		70,938
Meredith Corp.		9,100		473,564
Morningstar, Inc.		350		26,561
National CineMedia, Inc.		1,750		26,670
The New York Times Co., Class A		11,375		152,311
News Corp., Class A*		12,775		201,590
Nexstar Broadcasting Group, Inc., Class A		1,925		112,536
Omnicom Group, Inc.		4,375		331,450
Regal Entertainment Group, Class A		8,575		188,650
Rentrak Corp.*		700		33,180
Scholastic Corp.		3,325		135,128
Scripps Networks Interactive, Inc., Class A		2,100		146,706
Sinclair Broadcast Group, Inc., Class A		21,700		664,888
Sirius XM Holdings, Inc.*		46,900		185,255
Sizmek, Inc.*		5,600		38,976


	Shares		Value
Media – (continued)
Starz, Class A*		6,650	$	261,545
Time Warner Cable, Inc.		5,775		898,128
Time Warner, Inc.		18,550		1,565,806
Townsquare Media, Inc., Class A*		1,575		21,515
Twenty-First Century Fox, Inc., Class A		37,100		1,264,368
Viacom, Inc., Class B		7,175		498,304
The Walt Disney Co.		33,075		3,595,914
World Wrestling Entertainment, Inc., Class A		3,325		44,622
				19,783,233
Metals & Mining – 0.7%
A.M. Castle & Co.*		12,250		48,020
AK Steel Holding Corp.*		46,375		235,585
Alcoa, Inc.		23,625		317,047
Allegheny Technologies, Inc.		3,150		107,068
Carpenter Technology Corp.		4,025		174,081
Century Aluminum Co.*		4,550		58,649
Cliffs Natural Resources, Inc.		9,275		55,093
Coeur Mining, Inc.*		47,075		245,731
Commercial Metals Co.		36,575		607,145
Compass Minerals International, Inc.		2,625		231,866
Freeport-McMoRan, Inc.		33,425		777,800
Globe Specialty Metals, Inc.		4,900		97,608
Gold Resource Corp.		10,850		36,564
Hecla Mining Co.		20,475		61,835
Horsehead Holding Corp.*		3,150		47,093
Kaiser Aluminum Corp.		2,450		196,907
Materion Corp.		2,625		104,974
McEwen Mining, Inc.*		30,275		30,275
Molycorp, Inc.*		62,125		57,329
Newmont Mining Corp.		10,675		282,781
Noranda Aluminum Holding Corp.		15,750		52,605
Nucor Corp.		7,875		384,773
Reliance Steel & Aluminum Co.		2,800		181,216
Royal Gold, Inc.		1,750		112,928
RTI International Metals, Inc.*		1,925		72,476
Southern Copper Corp.		5,600		182,448
Steel Dynamics, Inc.		7,000		154,910

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)
Metals & Mining – (continued)
Stillwater Mining Co.*		9,100	$	122,213
SunCoke Energy, Inc.		4,725		82,829
TimkenSteel Corp.		1,400		40,866
U.S. Silica Holdings, Inc.		2,450		91,508
United States Steel Corp.		6,475		155,530
Worthington Industries, Inc.		14,175		383,150
				5,790,903
Multiline Retail – 0.7%
Big Lots, Inc.		4,375		199,369
Burlington Stores, Inc.*		4,725		243,668
Dillard’s, Inc., Class A		525		69,085
Dollar General Corp.		6,825		496,246
Dollar Tree, Inc.*		5,600		427,896
Family Dollar Stores, Inc.		2,450		191,443
Fred’s, Inc., Class A		10,675		180,087
J.C. Penney Co., Inc.*		97,475		809,042
Kohl’s Corp.		5,425		388,701
Macy’s, Inc.		9,800		633,374
Nordstrom, Inc.		3,150		238,014
Sears Holdings Corp.*		1,225		48,927
Target Corp.		17,500		1,379,525
Tuesday Morning Corp.*		4,900		77,518
				5,382,895
Multi-Utilities – 1.0%
Alliant Energy Corp.		2,800		169,316
Ameren Corp.		7,350		300,909
Avista Corp.		17,850		582,267
Black Hills Corp.		5,075		250,147
CenterPoint Energy, Inc.		14,875		311,929
CMS Energy Corp.		6,475		219,697
Consolidated Edison, Inc.		8,575		527,791
Dominion Resources, Inc.		12,775		915,712
DTE Energy Co.		5,075		404,122
Integrys Energy Group, Inc.		2,275		166,302
MDU Resources Group, Inc.		8,750		195,037
NiSource, Inc.		5,425		235,553
NorthWestern Corp.		5,075		264,357
PG&E Corp.		12,600		666,792
Public Service Enterprise Group, Inc.		15,225		632,447


	Shares		Value
Multi-Utilities – (continued)
SCANA Corp.		4,900	$	259,602
Sempra Energy		4,550		483,074
TECO Energy, Inc.		4,200		79,590
Vectren Corp.		24,325		1,050,110
Wisconsin Energy Corp.		3,850		189,112
				7,903,866
Oil, Gas & Consumable Fuels – 6.3%
Abraxas Petroleum Corp.*		28,350		107,730
Alon USA Energy, Inc.		6,125		98,551
Alpha Natural Resources, Inc.*		525		425
Anadarko Petroleum Corp.		11,375		1,070,387
Antero Resources Corp.*		2,100		93,051
Apache Corp.		13,300		909,720
Approach Resources, Inc.*		13,125		115,106
Arch Coal, Inc.*		33,950		33,074
Bill Barrett Corp.*		17,500		203,000
Bonanza Creek Energy, Inc.*		1,925		53,053
Cabot Oil & Gas Corp.		7,525		254,495
Callon Petroleum Co.*		19,250		172,095
Carrizo Oil & Gas, Inc.*		3,850		214,560
Cheniere Energy, Inc.*		4,900		374,801
Chesapeake Energy Corp.		20,125		317,371
Chevron Corp.		58,800		6,530,328
Cimarex Energy Co.		1,750		217,700
Clayton Williams Energy, Inc.*		700		38,969
Clean Energy Fuels Corp.*		25,025		246,997
Cloud Peak Energy, Inc.*		175		1,136
Cobalt International Energy, Inc.*		9,625		102,987
Comstock Resources, Inc.		5,425		29,132
Concho Resources, Inc.*		2,625		332,482
ConocoPhillips Co.		39,725		2,698,122
CONSOL Energy, Inc.		3,325		107,996
Continental Resources, Inc.*		2,100		110,523
CVR Energy, Inc.		875		35,035
Delek U.S. Holdings, Inc.		15,225		562,107
Denbury Resources, Inc.		14,350		126,423
Devon Energy Corp.		12,425		847,509
Diamondback Energy, Inc.*		2,625		216,746
Eclipse Resources Corp.*		875		5,539
Emerald Oil, Inc.*		350		224
Energen Corp.		1,925		137,002
Energy XXI Ltd.		32,550		142,243

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)
Oil, Gas & Consumable Fuels – (continued)
EOG Resources, Inc.		11,550	$	1,142,872
EP Energy Corp., Class A*		2,275		33,602
EQT Corp.		3,325		299,050
EXCO Resources, Inc.		350		721
Exxon Mobil Corp.		120,575		10,534,638
Gastar Exploration, Inc.*		4,900		17,787
Goodrich Petroleum Corp.*		5,425		20,995
Gran Tierra Energy, Inc.*		91,175		339,171
Green Plains, Inc.		11,025		343,318
Gulfport Energy Corp.*		1,750		85,645
Halcon Resources Corp.*		92,050		137,154
Hess Corp.		5,600		430,640
HollyFrontier Corp.		4,550		176,449
Jones Energy, Inc., Class A*		5,425		55,660
Kinder Morgan, Inc.		33,775		1,450,636
Kosmos Energy Ltd.*		3,325		32,518
Laredo Petroleum, Inc.*		7,350		116,130
Magnum Hunter Resources Corp.*		67,025		146,785
Marathon Oil Corp.		23,450		729,295
Marathon Petroleum Corp.		8,225		810,738
Matador Resources Co.*		4,375		121,275
Memorial Resource Development Corp.*		1,400		28,266
Midstates Petroleum Co., Inc.*		175		201
Murphy Oil Corp.		5,250		249,953
Newfield Exploration Co.*		4,900		192,276
Noble Energy, Inc.		7,700		390,544
Northern Oil and Gas, Inc.*		20,825		184,093
Oasis Petroleum, Inc.*		41,125		737,783
Occidental Petroleum Corp.		24,850		1,990,485
ONEOK, Inc.		4,550		218,855
Pacific Ethanol, Inc.*		8,225		98,371
Par Petroleum Corp.*		6,650		160,930
Parsley Energy, Inc., Class A*		3,325		57,656
PBF Energy, Inc., Class A		26,425		749,942
PDC Energy, Inc.*		2,100		119,154
Peabody Energy Corp.		97,125		459,401
Penn Virginia Corp.*		23,625		157,815
PetroQuest Energy, Inc.*		14,700		39,396
Phillips 66		16,100		1,276,891
Pioneer Natural Resources Co.		2,800		483,784


	Shares		Value
Oil, Gas & Consumable Fuels – (continued)
QEP Resources, Inc.		5,075	$	114,188
Range Resources Corp.		2,800		177,968
Renewable Energy Group, Inc.*		15,050		138,611
Resolute Energy Corp.*		27,475		34,069
REX American Resources Corp.*		1,225		77,445
Rex Energy Corp.*		19,250		96,250
Rice Energy, Inc.*		1,400		34,482
Rosetta Resources, Inc.*		15,225		347,587
RSP Permian, Inc.*		2,275		66,021
Sanchez Energy Corp.*		16,975		249,363
SandRidge Energy, Inc.*		135,100		255,339
SemGroup Corp., Class A		2,975		250,465
SM Energy Co.		2,275		131,882
Solazyme, Inc.*		8,225		31,666
Southwestern Energy Co.*		7,700		215,831
Spectra Energy Corp.		14,700		547,575
Stone Energy Corp.*		2,975		50,783
Swift Energy Co.*		6,825		20,612
Synergy Resources Corp.*		3,500		41,930
Targa Resources Corp.		1,750		183,698
Tesoro Corp.		3,325		285,385
TransAtlantic Petroleum Ltd.*		10,675		61,915
Triangle Petroleum Corp.*		24,150		144,176
Ultra Petroleum Corp.*		45,500		774,865
Valero Energy Corp.		14,875		846,388
W&T Offshore, Inc.		5,600		36,008
Warren Resources, Inc.*		175		189
Western Refining, Inc.		4,550		200,428
Westmoreland Coal Co.*		2,800		79,576
Whiting Petroleum Corp.*		6,475		245,467
The Williams Cos., Inc.		14,350		734,577
World Fuel Services Corp.		21,875		1,214,063
WPX Energy, Inc.*		4,550		62,563
				48,878,859
Paper & Forest Products – 0.6%
Boise Cascade Co.*		11,200		388,640
Clearwater Paper Corp.*		5,950		380,622
Domtar Corp.		19,075		824,422
International Paper Co.		11,200		601,664
KapStone Paper and Packaging Corp.		7,175		200,541
Louisiana-Pacific Corp.*		43,575		664,083

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)
Paper & Forest Products – (continued)
Mercer International, Inc.*		11,200	$	160,160
Neenah Paper, Inc.		2,975		179,898
PH Glatfelter Co.		12,775		316,820
Resolute Forest Products, Inc.*		9,800		151,116
Schweitzer-Mauduit International, Inc.		9,100		402,311
Wausau Paper Corp.		2,275		21,203
				4,291,480
Personal Products – 0.3%
Avon Products, Inc.		11,900		97,223
Coty, Inc., Class A*		2,800		66,948
Elizabeth Arden, Inc.*		8,225		115,726
The Estee Lauder Cos., Inc., Class A		4,550		369,869
Herbalife Ltd.*		2,275		94,458
Inter Parfums, Inc.		1,925		58,096
Medifast, Inc.*		1,050		31,500
Nu Skin Enterprises, Inc., Class A		18,550		1,049,003
Revlon, Inc., Class A*		2,275		88,975
USANA Health Sciences, Inc.*		700		79,618
				2,051,416
Pharmaceuticals – 3.4%
AbbVie, Inc.		33,250		2,149,945
AcelRx Pharmaceuticals, Inc.*		5,250		20,947
Actavis PLC*		7,525		2,128,521
Akorn, Inc.*		2,275		94,731
BioDelivery Sciences International, Inc.*		5,600		45,136
Bristol-Myers Squibb Co.		35,875		2,286,314
Catalent, Inc.*		21,000		604,170
Depomed, Inc.*		4,900		113,974
Eli Lilly & Co.		21,175		1,521,847
Endo International PLC*		3,149		264,721
Forest Laboratories, Inc.* ^		652		—
Horizon Pharma PLC*		5,775		162,393
Hospira, Inc.*		3,150		274,963
Impax Laboratories, Inc.*		4,375		198,013
Jazz Pharmaceuticals PLC*		1,225		218,907
Johnson & Johnson		57,925		5,746,160
Lannett Co., Inc.*		1,750		100,625


	Shares		Value
Pharmaceuticals – (continued)
Mallinckrodt PLC*		4,200	$	475,356
The Medicines Co.*		2,975		76,190
Merck & Co., Inc.		59,500		3,543,820
Mylan N.V.*		7,350		531,111
Nektar Therapeutics*		5,775		54,978
Omeros Corp.*		3,325		66,899
Pacira Pharmaceuticals, Inc.*		2,275		155,792
Perrigo Co. PLC		2,800		513,184
Pfizer, Inc.		129,150		4,382,060
POZEN, Inc.*		1,575		12,317
Prestige Brands Holdings, Inc.*		3,500		137,375
Sagent Pharmaceuticals, Inc.*		1,400		32,634
SciClone Pharmaceuticals, Inc.*		4,025		32,884
Supernus Pharmaceuticals, Inc.*		350		4,480
Tetraphase Pharmaceuticals, Inc.*		875		30,870
TherapeuticsMD, Inc.*		4,025		26,082
Theravance, Inc.		4,200		68,250
VIVUS, Inc.*		32,900		73,367
XenoPort, Inc.*		1,050		6,227
Zoetis, Inc.		10,150		450,863
				26,606,106
Professional Services – 0.6%
Acacia Research Corp.		4,375		48,212
The Advisory Board Co.*		2,100		108,969
CBIZ, Inc.*		8,750		79,100
The Corporate Executive Board Co.		2,275		190,713
The Dun & Bradstreet Corp.		700		89,369
Equifax, Inc.		2,450		237,478
Exponent, Inc.		1,225		108,547
FTI Consulting, Inc.*		12,075		496,403
GP Strategies Corp.*		1,400		45,626
Heidrick & Struggles International, Inc.		1,400		33,684
Hill International, Inc.*		9,100		35,035
Huron Consulting Group, Inc.*		1,575		95,477
ICF International, Inc.*		4,900		188,650
IHS, Inc., Class A*		1,225		153,701
Insperity, Inc.		1,750		84,280
Kelly Services, Inc., Class A		3,150		51,723
Kforce, Inc.		3,500		79,590
Korn/Ferry International		13,650		430,385

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)
Professional Services – (continued)
ManpowerGroup, Inc.		2,100	$	179,193
Mistras Group, Inc.*		175		3,143
Navigant Consulting, Inc.*		16,275		235,337
Nielsen N.V.		5,950		267,393
On Assignment, Inc.*		12,600		423,990
Resources Connection, Inc.		2,800		44,128
Robert Half International, Inc.		2,975		164,964
RPX Corp.*		15,750		245,070
Towers Watson & Co., Class A		1,050		133,250
TriNet Group, Inc.*		1,575		55,157
TrueBlue, Inc.*		2,450		70,511
Verisk Analytics, Inc., Class A*		3,500		262,640
WageWorks, Inc.*		1,575		79,380
				4,721,098
Real Estate Investment Trusts (REITs) – 5.0%
Acadia Realty Trust		6,300		194,670
AG Mortgage Investment Trust, Inc.		7,175		137,903
Agree Realty Corp.		1,400		43,092
Alexander’s, Inc.		350		150,927
Alexandria Real Estate Equities, Inc.		2,450		226,331
American Assets Trust, Inc.		2,625		104,475
American Campus Communities, Inc.		3,150		126,441
American Capital Agency Corp.		11,900		245,556
American Capital Mortgage Investment Corp.		21,000		368,340
American Homes 4 Rent, Class A		45,500		768,495
American Realty Capital Properties, Inc.		19,425		175,408
American Residential Properties, Inc.*		9,100		170,716
American Tower Corp.		8,400		794,052
Annaly Capital Management, Inc.		36,925		371,835
Anworth Mortgage Asset Corp.		33,950		172,466
Apartment Investment & Management Co., Class A		4,025		151,863
Apollo Commercial Real Estate Finance, Inc.		10,150		173,463
Apollo Residential Mortgage, Inc.		9,450		149,877


	Shares		Value
Real Estate Investment Trusts (REITs) – (continued)
Ares Commercial Real Estate Corp.		4,725	$	53,629
ARMOUR Residential REIT, Inc.		132,650		397,950
Ashford Hospitality Trust, Inc.		16,625		150,622
Associated Estates Realty Corp.		16,975		483,787
AvalonBay Communities, Inc.		3,325		546,430
BioMed Realty Trust, Inc.		2,800		58,100
Blackstone Mortgage Trust, Inc., Class A		23,625		725,996
Boston Properties, Inc.		4,375		578,856
Brandywine Realty Trust		14,000		204,120
Brixmor Property Group, Inc.		1,400		32,830
Camden Property Trust		2,100		157,668
Campus Crest Communities, Inc.		13,825		87,512
Capstead Mortgage Corp.		32,375		377,169
CBL & Associates Properties, Inc.		5,950		107,159
Cedar Realty Trust, Inc.		7,350		51,376
Chatham Lodging Trust		6,475		178,969
Chesapeake Lodging Trust		5,075		161,131
Chimera Investment Corp.		66,500		1,010,135
Colony Capital, Inc., Class A		32,025		829,768
Columbia Property Trust, Inc.		6,125		160,659
Communications Sales & Leasing, Inc.*		1,855		55,798
CoreSite Realty Corp.		2,275		109,382
Corporate Office Properties Trust		7,350		193,966
Corrections Corp. of America		2,975		109,450
Cousins Properties, Inc.		37,275		363,058
Crown Castle International Corp.		7,350		613,945
CubeSmart		12,775		294,719
CyrusOne, Inc.		2,450		79,576
CYS Investments, Inc.		52,500		468,300
DCT Industrial Trust, Inc.		5,775		190,806
DDR Corp.		9,450		161,122
DiamondRock Hospitality Co.		16,975		230,181
Digital Realty Trust, Inc.		2,625		166,451
Douglas Emmett, Inc.		1,925		54,862
Duke Realty Corp.		9,800		194,138
DuPont Fabros Technology, Inc.		5,250		163,537
Dynex Capital, Inc.		1,925		15,400
EastGroup Properties, Inc.		1,225		70,070
Education Realty Trust, Inc.		3,850		129,437
Empire State Realty Trust, Inc., Class A		6,475		116,550

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)
Real Estate Investment Trusts (REITs) – (continued)
EPR Properties		4,725	$	272,491
Equity Commonwealth*		9,625		242,646
Equity LifeStyle Properties, Inc.		1,400		73,948
Equity One, Inc.		5,775		142,238
Equity Residential		9,275		685,051
Essex Property Trust, Inc.		1,050		233,047
Excel Trust, Inc.		15,925		252,411
Extra Space Storage, Inc.		3,325		219,217
Federal Realty Investment Trust		1,925		257,315
FelCor Lodging Trust, Inc.		11,725		130,265
First Industrial Realty Trust, Inc.		8,575		169,185
First Potomac Realty Trust		175		1,876
Franklin Street Properties Corp.		3,500		41,335
Gaming and Leisure Properties, Inc.		4,900		174,930
General Growth Properties, Inc.		13,300		364,420
The GEO Group, Inc.		6,300		245,700
Getty Realty Corp.		1,050		18,238
Gladstone Commercial Corp.		175		3,117
Government Properties Income Trust		175		3,647
Gramercy Property Trust, Inc.		9,625		263,147
Hannon Armstrong Sustainable Infrastructure Capital, Inc.		2,975		56,525
Hatteras Financial Corp.		29,575		534,125
HCP, Inc.		9,625		387,791
Health Care REIT, Inc.		8,225		592,365
Healthcare Realty Trust, Inc.		7,175		183,680
Healthcare Trust of America, Inc., Class A		5,425		140,453
Hersha Hospitality Trust		12,075		77,642
Highwoods Properties, Inc.		4,725		203,364
Home Properties, Inc.		1,925		141,603
Hospitality Properties Trust		4,375		131,600
Host Hotels & Resorts, Inc.		12,950		260,813
Hudson Pacific Properties, Inc.		4,900		147,784
Inland Real Estate Corp.		2,975		30,613
Invesco Mortgage Capital, Inc.		42,350		652,190
Investors Real Estate Trust		2,100		15,057
Iron Mountain, Inc.		3,500		120,715
iStar Financial, Inc.*		21,525		291,449
Kilroy Realty Corp.		1,400		99,386


	Shares		Value
Real Estate Investment Trusts (REITs) – (continued)
Kimco Realty Corp.		10,500	$	253,050
Kite Realty Group Trust		5,425		142,135
Lamar Advertising Co., Class A		1,400		81,144
LaSalle Hotel Properties		5,775		211,885
Lexington Realty Trust		4,025		37,312
Liberty Property Trust		2,100		73,164
LTC Properties, Inc.		2,800		121,688
The Macerich Co.		3,150		257,544
Mack-Cali Realty Corp.		5,075		91,096
Medical Properties Trust, Inc.		59,150		826,917
MFA Financial, Inc.		119,175		925,990
Mid-America Apartment Communities, Inc.		1,750		130,568
Monmouth Real Estate Investment Corp.		4,900		50,617
National Health Investors, Inc.		2,625		175,140
National Retail Properties, Inc.		3,150		120,960
New Residential Investment Corp.		59,500		1,013,880
New York Mortgage Trust, Inc.		26,075		203,646
New York REIT, Inc.		4,550		44,954
Newcastle Investment Corp.		16,275		86,746
NorthStar Realty Finance Corp.		13,475		252,791
Omega Healthcare Investors, Inc.		5,250		189,473
Outfront Media, Inc.		5,600		160,832
Parkway Properties, Inc.		2,100		34,167
Pebblebrook Hotel Trust		5,950		255,493
Pennsylvania Real Estate Investment Trust		18,900		427,329
PennyMac Mortgage Investment Trust		17,500		366,625
Piedmont Office Realty Trust, Inc., Class A		10,500		183,540
Plum Creek Timber Co., Inc.		1,225		51,695
Post Properties, Inc.		4,200		240,114
Potlatch Corp.		1,050		38,756
Prologis, Inc.		11,200		450,240
PS Business Parks, Inc.		1,050		80,168
Public Storage		3,850		723,454
QTS Realty Trust, Inc., Class A		875		31,736
RAIT Financial Trust		17,675		114,534
Ramco-Gershenson Properties Trust		3,850		67,298
Rayonier, Inc.		2,275		58,217

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)
Real Estate Investment Trusts (REITs) – (continued)
Realty Income Corp.		4,900	$	230,160
Redwood Trust, Inc.		5,600		96,264
Regency Centers Corp.		2,800		175,784
Resource Capital Corp.		42,175		185,992
Retail Opportunity Investments Corp.		5,950		99,841
Retail Properties of America, Inc., Class A		7,000		105,770
Rexford Industrial Realty, Inc.		175		2,601
RLJ Lodging Trust		7,000		207,690
Rouse Properties, Inc.		2,450		42,802
Ryman Hospitality Properties, Inc.		4,900		282,436
Sabra Health Care REIT, Inc.		3,675		109,809
Saul Centers, Inc.		1,400		70,448
Select Income REIT		7,000		162,330
Senior Housing Properties Trust		1,050		21,494
Simon Property Group, Inc.		7,175		1,302,191
SL Green Realty Corp.		1,575		192,717
Sovran Self Storage, Inc.		3,150		275,121
Spirit Realty Capital, Inc.		20,125		227,211
STAG Industrial, Inc.		3,850		83,661
Starwood Property Trust, Inc.		5,775		138,658
Strategic Hotels & Resorts, Inc.*		80,850		945,945
Summit Hotel Properties, Inc.		11,025		145,199
Sun Communities, Inc.		3,325		206,350
Sunstone Hotel Investors, Inc.		16,975		264,471
Tanger Factory Outlet Centers, Inc.		4,025		135,160
Taubman Centers, Inc.		1,050		75,611
Terreno Realty Corp.		1,575		33,516
Two Harbors Investment Corp.		4,200		44,100
UDR, Inc.		6,650		217,921
Universal Health Realty Income Trust		2,275		112,977
Urstadt Biddle Properties, Inc., Class A		875		18,156
Ventas, Inc.		5,425		373,783
Vornado Realty Trust		3,675		380,326
Washington Real Estate Investment Trust		4,900		121,128
Weingarten Realty Investors		1,400		45,864
Western Asset Mortgage Capital Corp.		5,425		79,259


	Shares		Value
Real Estate Investment Trusts (REITs) – (continued)
Weyerhaeuser Co.		10,500	$	330,855
				38,640,402
Real Estate Management & Development – 0.2%
Alexander & Baldwin, Inc.		1,925		77,924
Altisource Portfolio Solutions S.A.*		2,275		55,169
CBRE Group, Inc., Class A*		6,300		241,542
Forest City Enterprises, Inc., Class A*		6,300		149,688
Forestar Group, Inc.*		11,725		173,061
The Howard Hughes Corp.*		875		129,911
Jones Lang LaSalle, Inc.		875		145,302
Kennedy-Wilson Holdings, Inc.		4,375		108,413
RE/MAX Holdings, Inc., Class A		175		5,913
Realogy Holdings Corp.*		2,275		107,858
The St. Joe Co.*		26,600		464,170
				1,658,951
Road & Rail – 0.8%
AMERCO		700		225,428
ArcBest Corp.		2,975		106,207
Avis Budget Group, Inc.*		4,725		255,811
Celadon Group, Inc.		4,200		108,528
Con-way, Inc.		4,900		201,390
CSX Corp.		19,600		707,364
Genesee & Wyoming, Inc., Class A*		1,225		113,864
Heartland Express, Inc.		2,800		58,576
Hertz Global Holdings, Inc.*		12,425		258,937
J.B. Hunt Transport Services, Inc.		1,225		106,820
Kansas City Southern		1,750		179,357
Knight Transportation, Inc.		4,900		141,610
Landstar System, Inc.		2,275		141,755
Marten Transport Ltd.		3,675		81,806
Norfolk Southern Corp.		5,950		600,058
Old Dominion Freight Line, Inc.*		2,800		199,164
Quality Distribution, Inc.*		6,650		65,968
Roadrunner Transportation Systems, Inc.*		8,225		201,266
Ryder System, Inc.		3,150		300,384
Saia, Inc.*		2,100		85,575
Swift Transportation Co.*		9,100		220,220
Union Pacific Corp.		18,025		1,914,796

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)
Road & Rail – (continued)
Werner Enterprises, Inc.		3,675	$	98,747
YRC Worldwide, Inc.*		6,825		106,470
				6,480,101
Semiconductors & Semiconductor Equipment – 2.4%
Advanced Energy Industries, Inc.*		8,050		196,903
Advanced Micro Devices, Inc.*		24,500		55,370
Altera Corp.		6,125		255,290
Amkor Technology, Inc.*		37,450		263,273
Analog Devices, Inc.		5,600		346,304
Applied Materials, Inc.		24,150		477,928
Applied Micro Circuits Corp.*		6,650		35,710
Atmel Corp.		24,675		187,036
Avago Technologies Ltd.		4,900		572,712
Broadcom Corp., Class A		8,225		363,586
Brooks Automation, Inc.		5,075		54,607
Cabot Microelectronics Corp.*		1,925		91,052
Cavium, Inc.*		4,025		260,780
CEVA, Inc.*		875		18,112
Cirrus Logic, Inc.*		19,250		650,265
Cree, Inc.*		1,050		33,264
Cypress Semiconductor Corp.*		20,475		272,727
Diodes, Inc.*		8,575		229,124
Entegris, Inc.*		13,125		174,694
Entropic Communications, Inc.*		2,800		8,456
Exar Corp.*		1,750		17,272
Fairchild Semiconductor International, Inc.*		9,275		168,480
First Solar, Inc.*		1,575		93,980
FormFactor, Inc.*		6,475		51,606
Freescale Semiconductor Ltd.*		3,325		129,974
Inphi Corp.*		1,750		37,537
Integrated Device Technology, Inc.*		11,025		200,545
Integrated Silicon Solution, Inc.		4,550		84,402
Intel Corp.		142,625		4,642,444
Intersil Corp., Class A		9,450		126,158
IXYS Corp.		1,225		13,855
KLA-Tencor Corp.		2,275		133,770
Kulicke & Soffa Industries, Inc.*		8,925		134,857
Lam Research Corp.		3,150		238,077
Lattice Semiconductor Corp.*		11,900		70,567


	Shares		Value
Semiconductors & Semiconductor Equipment – (continued)
Linear Technology Corp.		3,325	$	153,382
Magnachip Semiconductor Corp.*		10,675		58,499
Marvell Technology Group Ltd.		10,500		147,105
Maxim Integrated Products, Inc.		6,475		212,574
MaxLinear, Inc., Class A*		525		4,478
Micrel, Inc.		5,250		71,400
Microchip Technology, Inc.		2,625		125,094
Micron Technology, Inc.*		32,550		915,632
Microsemi Corp.*		27,825		928,242
MKS Instruments, Inc.		3,850		134,019
Monolithic Power Systems, Inc.		3,150		163,265
Nanometrics, Inc.*		700		10,822
NVIDIA Corp.		9,625		213,627
OmniVision Technologies, Inc.*		15,750		439,346
ON Semiconductor Corp.*		9,450		108,864
PDF Solutions, Inc.*		700		12,649
Photronics, Inc.*		7,700		67,529
PMC-Sierra, Inc.*		18,025		151,951
Power Integrations, Inc.		1,750		86,608
Qorvo, Inc.*		9,100		599,781
Rambus, Inc.*		10,500		145,320
Rudolph Technologies, Inc.*		1,225		15,717
Semtech Corp.*		1,400		32,606
Silicon Laboratories, Inc.*		2,100		108,507
Skyworks Solutions, Inc.		3,150		290,588
SunEdison, Inc.*		10,850		274,722
SunPower Corp.*		3,325		107,032
Synaptics, Inc.*		2,450		207,564
Teradyne, Inc.		6,300		114,975
Tessera Technologies, Inc.		4,550		164,301
Texas Instruments, Inc.		23,275		1,261,738
Ultra Clean Holdings, Inc.*		4,200		25,242
Ultratech, Inc.*		1,400		27,944
Veeco Instruments, Inc.*		2,100		61,971
Xcerra Corp.*		14,525		142,781
Xilinx, Inc.		4,550		197,288
				18,473,880
Software – 3.1%
ACI Worldwide, Inc.*		8,925		205,543
Activision Blizzard, Inc.		9,625		219,594
Adobe Systems, Inc.*		9,450		718,767

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)
Software – (continued)
Advent Software, Inc.		1,925	$	83,564
ANSYS, Inc.*		2,450		210,308
Aspen Technology, Inc.*		5,425		240,816
Autodesk, Inc.*		4,550		258,576
Blackbaud, Inc.		3,150		159,169
Bottomline Technologies de, Inc.*		2,100		56,196
BroadSoft, Inc.*		875		27,685
CA, Inc.		9,450		300,226
Cadence Design Systems, Inc.*		4,375		81,594
Callidus Software, Inc.*		2,975		36,741
CDK Global, Inc.		1,750		83,860
Citrix Systems, Inc.*		1,925		129,283
CommVault Systems, Inc.*		700		32,025
Digimarc Corp.		700		16,380
Ebix, Inc.		8,225		224,460
Electronic Arts, Inc.*		6,125		355,801
Ellie Mae, Inc.*		2,275		125,125
EnerNOC, Inc.*		1,400		15,470
Epiq Systems, Inc.		4,725		84,625
ePlus, Inc.*		1,750		145,180
FactSet Research Systems, Inc.		700		110,173
Fair Isaac Corp.		2,450		216,727
Fleetmatics Group PLC*		2,275		103,694
Fortinet, Inc.*		7,875		297,202
Gigamon, Inc.*		175		5,150
Glu Mobile, Inc.*		4,025		27,209
Guidewire Software, Inc.*		3,325		166,084
Imperva, Inc.*		1,575		71,851
Informatica Corp.*		1,050		50,474
Interactive Intelligence Group, Inc.*		700		30,786
Intuit, Inc.		6,125		614,521
Jive Software, Inc.*		3,150		16,947
Manhattan Associates, Inc.*		5,950		312,732
Mentor Graphics Corp.		29,050		695,167
Microsoft Corp.		173,075		8,418,368
MicroStrategy, Inc., Class A*		875		159,355
Model N, Inc.*		700		8,225
Monotype Imaging Holdings, Inc.		2,275		73,733
NetScout Systems, Inc.*		3,500		143,850
NetSuite, Inc.*		700		66,899
Nuance Communications, Inc.*		8,225		126,089


	Shares		Value
Software – (continued)
Oracle Corp.		68,775	$	2,999,966
Pegasystems, Inc.		2,800		60,312
Progress Software Corp.*		2,975		78,540
Proofpoint, Inc.*		2,275		122,805
PROS Holdings, Inc.*		875		19,451
PTC, Inc.*		6,300		241,542
Qlik Technologies, Inc.*		4,725		164,383
Qualys, Inc.*		1,050		51,996
RealPage, Inc.*		875		17,360
Red Hat, Inc.*		3,500		263,410
Rovi Corp.*		27,650		511,802
Salesforce.com, Inc.*		12,250		892,045
Seachange International, Inc.*		875		5,871
ServiceNow, Inc.*		2,275		170,307
Silver Spring Networks, Inc.*		8,575		83,349
SolarWinds, Inc.*		4,725		230,486
Solera Holdings, Inc.		1,225		59,437
Splunk, Inc.*		1,925		127,714
SS&C Technologies Holdings, Inc.		3,325		200,065
Symantec Corp.		19,250		479,806
Synchronoss Technologies, Inc.*		2,975		136,493
Synopsys, Inc.*		3,150		147,672
Tableau Software, Inc., Class A*		875		85,610
Take-Two Interactive Software, Inc.*		7,525		178,343
Tangoe, Inc.*		700		9,576
Telenav, Inc.*		1,750		14,630
TiVo, Inc.*		2,625		29,006
Tyler Technologies, Inc.*		2,275		277,436
The Ultimate Software Group, Inc.*		1,400		232,708
Varonis Systems, Inc.*		175		5,031
VASCO Data Security International, Inc.*		2,450		62,279
Verint Systems, Inc.*		4,200		258,006
VirnetX Holding Corp.*		2,100		13,566
VMware, Inc., Class A*		1,925		169,593
Workday, Inc., Class A*		1,400		127,694
Zix Corp.*		2,800		11,928
Zynga, Inc., Class A*		25,550		62,598
				24,129,040

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)
Specialty Retail – 3.2%
Aaron’s, Inc.		20,475	$	696,150
Abercrombie & Fitch Co., Class A		14,700		330,456
Advance Auto Parts, Inc.		1,575		225,225
Aeropostale, Inc.*		23,100		71,379
American Eagle Outfitters, Inc.		8,750		139,212
America’s Car-Mart, Inc.*		2,275		116,798
ANN, Inc.*		13,825		523,414
Asbury Automotive Group, Inc.*		7,875		661,736
Ascena Retail Group, Inc.*		41,300		619,087
AutoNation, Inc.*		2,275		140,026
AutoZone, Inc.*		700		470,862
Barnes & Noble, Inc.*		5,600		122,640
bebe stores, inc.		12,425		41,127
Bed Bath & Beyond, Inc.*		4,725		332,923
Best Buy Co., Inc.		7,175		248,614
Big 5 Sporting Goods Corp.		3,325		45,353
Brown Shoe Co., Inc.		4,200		124,740
The Buckle, Inc.		1,225		54,880
Cabela’s, Inc.*		14,525		766,048
CarMax, Inc.*		4,725		321,820
The Cato Corp., Class A		2,625		103,267
Chico’s FAS, Inc.		7,525		126,871
The Children’s Place, Inc.		5,425		329,080
Christopher & Banks Corp.*		1,225		7,276
Citi Trends, Inc.*		2,275		51,824
Conn’s, Inc.*		7,700		215,369
CST Brands, Inc.		4,550		189,780
Destination Maternity Corp.		3,500		41,265
Dick’s Sporting Goods, Inc.		2,275		123,442
DSW, Inc., Class A		3,850		139,639
Express, Inc.*		26,075		425,023
The Finish Line, Inc., Class A		14,700		360,591
Five Below, Inc.*		2,625		88,515
Foot Locker, Inc.		3,325		197,671
Francesca’s Holdings Corp.*		2,275		38,516
GameStop Corp., Class A		3,150		121,401
The Gap, Inc.		5,600		221,984
Genesco, Inc.*		7,700		520,443
GNC Holdings, Inc., Class A		1,750		75,338
Group 1 Automotive, Inc.		6,125		483,753
Guess?, Inc.		13,825		253,136
Haverty Furniture Cos, Inc.		1,050		22,533


	Shares		Value
Specialty Retail – (continued)
Hibbett Sports, Inc.*		350	$	16,380
The Home Depot, Inc.		28,175		3,014,162
Kirkland’s, Inc.*		3,325		78,936
L Brands, Inc.		5,950		531,692
Lithia Motors, Inc., Class A		2,275		226,886
Lowe’s Cos., Inc.		22,050		1,518,363
Lumber Liquidators Holdings, Inc.*		1,750		48,108
MarineMax, Inc.*		2,275		50,232
Mattress Firm Holding Corp.*		1,575		93,051
The Men’s Wearhouse, Inc.		5,250		297,098
Monro Muffler Brake, Inc.		2,625		157,211
Murphy USA, Inc.*		11,725		765,994
Office Depot, Inc.*		155,400		1,432,788
O’Reilly Automotive, Inc.*		2,450		533,684
Outerwall, Inc.		5,775		383,633
Penske Automotive Group, Inc.		4,200		205,002
The Pep Boys-Manny Moe & Jack*		4,725		43,281
Pier 1 Imports, Inc.		27,300		345,345
Rent-A-Center, Inc.		17,325		512,820
Restoration Hardware Holdings, Inc.*		1,925		165,877
Ross Stores, Inc.		5,075		501,816
Sally Beauty Holdings, Inc.*		6,125		191,161
Select Comfort Corp.*		4,200		129,444
Shoe Carnival, Inc.		3,675		95,954
Signet Jewelers Ltd.		1,575		211,255
Sonic Automotive, Inc., Class A		11,725		273,779
Sportsman’s Warehouse Holdings, Inc.*		2,800		26,964
Stage Stores, Inc.		7,875		152,066
Staples, Inc.		18,200		297,024
Stein Mart, Inc.		3,675		43,475
Tiffany & Co.		2,450		214,326
Tile Shop Holdings, Inc.*		1,400		18,158
Tilly’s, Inc., Class A*		2,625		35,018
The TJX Cos., Inc.		15,225		982,622
Tractor Supply Co.		3,675		316,271
Ulta Salon Cosmetics & Fragrance, Inc.*		1,575		237,967
Urban Outfitters, Inc.*		1,575		63,063
Vitamin Shoppe, Inc.*		1,575		65,961

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)
Specialty Retail – (continued)
Williams-Sonoma, Inc.		1,575	$	115,810
Zumiez, Inc.*		1,575		49,943
				24,631,827
Technology Hardware, Storage & Peripherals – 2.9%
3D Systems Corp.*		3,325		83,424
Apple, Inc.		122,675		15,352,776
Cray, Inc.*		2,800		78,652
Diebold, Inc.		5,600		194,712
Eastman Kodak Co.*		13,475		261,011
Electronics For Imaging, Inc.*		3,325		138,752
EMC Corp.		44,800		1,205,568
Hewlett-Packard Co.		55,825		1,840,550
Immersion Corp.*		875		9,476
Lexmark International, Inc., Class A		18,725		831,203
NCR Corp.*		3,675		100,842
NetApp, Inc.		9,275		336,219
Nimble Storage, Inc.*		1,400		34,244
QLogic Corp.*		26,775		393,592
Quantum Corp.*		75,250		151,253
SanDisk Corp.		4,550		304,577
Seagate Technology PLC		9,100		534,352
Silicon Graphics International Corp.*		875		7,096
Super Micro Computer, Inc.*		2,800		80,556
Violin Memory, Inc.*		175		597
Western Digital Corp.		4,725		461,822
				22,401,274
Textiles, Apparel & Luxury Goods – 0.8%
Carter’s, Inc.		1,400		139,804
Coach, Inc.		7,875		300,904
Columbia Sportswear Co.		2,100		131,670
Crocs, Inc.*		4,025		53,130
Deckers Outdoor Corp.*		2,625		194,250
Fossil Group, Inc.*		525		44,089
G-III Apparel Group Ltd.*		5,425		603,151
Hanesbrands, Inc.		5,600		174,048
Iconix Brand Group, Inc.*		6,300		165,753
Kate Spade & Co.*		7,875		257,513
lululemon athletica, Inc.*		2,625		167,055
Michael Kors Holdings Ltd.*		2,275		140,731
Movado Group, Inc.		525		15,372
NIKE, Inc., Class B		15,575		1,539,433


	Shares		Value
Textiles, Apparel & Luxury Goods – (continued)
Oxford Industries, Inc.		700	$	55,615
Perry Ellis International, Inc.*		1,225		29,302
PVH Corp.		2,100		217,035
Quiksilver, Inc.*		5,950		9,877
Ralph Lauren Corp.		1,400		186,774
Sequential Brands Group, Inc.*		700		8,680
Skechers USA, Inc., Class A*		3,675		330,456
Steven Madden Ltd.*		3,150		122,913
Tumi Holdings, Inc.*		3,675		85,958
Under Armour, Inc., Class A*		3,150		244,283
Unifi, Inc.*		3,150		111,164
Vera Bradley, Inc.*		875		12,460
VF Corp.		8,225		595,737
Vince Holding Corp.*		875		16,126
Wolverine World Wide, Inc.		6,475		198,977
				6,152,260
Thrifts & Mortgage Finance – 0.6%
Astoria Financial Corp.		12,775		168,247
Beneficial Bancorp, Inc.*		4,200		48,720
BofI Holding, Inc.*		1,225		112,467
Brookline Bancorp, Inc.		14,875		160,204
Capitol Federal Financial, Inc.		7,175		86,100
Dime Community Bancshares, Inc.		13,650		217,308
Essent Group Ltd.*		2,450		61,127
EverBank Financial Corp.		12,250		227,482
Federal Agricultural Mortgage Corp., Class C		3,675		115,542
Flagstar Bancorp, Inc.*		8,925		153,331
HomeStreet, Inc.*		4,550		94,094
Hudson City Bancorp, Inc.		5,950		55,335
LendingTree, Inc.*		350		19,261
MGIC Investment Corp.*		26,250		273,525
Nationstar Mortgage Holdings, Inc.*		12,600		316,260
New York Community Bancorp, Inc.		7,875		135,371
Northfield Bancorp, Inc.		4,200		60,606
Northwest Bancshares, Inc.		3,850		47,394
Ocwen Financial Corp.*		34,825		295,664
Oritani Financial Corp.		700		10,430
PennyMac Financial Services, Inc., Class A*		5,075		95,816
People’s United Financial, Inc.		5,775		87,260
Provident Financial Services, Inc.		14,875		267,750
Radian Group, Inc.		16,100		287,546

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)
Thrifts & Mortgage Finance– (continued)
Stonegate Mortgage Corp.*		3,150	$	33,831
TFS Financial Corp.		1,925		28,144
TrustCo Bank Corp.		16,275		108,554
United Financial Bancorp, Inc.		1,925		24,544
Walker & Dunlop, Inc.*		7,875		150,728
Washington Federal, Inc.		27,125		585,900
WSFS Financial Corp.		1,225		87,183
				4,415,724
Tobacco – 0.8%
Altria Group, Inc.		42,700		2,137,135
Lorillard, Inc.		7,175		501,245
Philip Morris International, Inc.		30,975		2,585,483
Reynolds American, Inc.		7,175		525,928
Universal Corp.		8,050		378,592
Vector Group Ltd.		9,100		201,565
				6,329,948
Trading Companies & Distributors – 0.5%
Air Lease Corp.		5,775		223,088
Applied Industrial Technologies, Inc.		1,750		73,097
Beacon Roofing Supply, Inc.*		4,725		140,427
CAI International, Inc.*		4,725		112,549
DXP Enterprises, Inc.*		1,400		63,070
Fastenal Co.		3,325		141,711
GATX Corp.		13,475		733,040
H&E Equipment Services, Inc.		1,750		43,260
HD Supply Holdings, Inc.*		3,150		103,950
Kaman Corp.		4,375		182,481
MRC Global, Inc.*		35,000		511,000
MSC Industrial Direct Co., Inc., Class A		1,750		124,355
Rush Enterprises, Inc., Class A*		9,975		260,747
TAL International Group, Inc.*		9,975		384,437
Titan Machinery, Inc.*		5,775		84,604
United Rentals, Inc.*		2,625		253,523
Veritiv Corp.*		2,100		83,454
W.W. Grainger, Inc.		1,050		260,852
Watsco, Inc.		2,275		273,660
WESCO International, Inc.*		1,400		100,996
				4,154,301


	Shares		Value
Transportation Infrastructure – 0.0%^†
Wesco Aircraft Holdings, Inc.*		17,500	$	274,400
Water Utilities – 0.1%
American States Water Co.		3,675		141,083
American Water Works Co., Inc.		3,150		171,738
Aqua America, Inc.		2,975		79,790
California Water Service Group		3,500		83,545
Connecticut Water Service, Inc.		1,050		37,800
SJW Corp.		875		25,594
				539,550
Wireless Telecommunication Services – 0.2%
Boingo Wireless, Inc.*		3,500		28,910
Leap Wireless International, Inc.* ^		12,069		—
NTELOS Holdings Corp.		5,775		33,553
SBA Communications Corp., Class A*		2,100		243,222
Shenandoah Telecommunications Co.		3,150		108,549
Spok Holdings, Inc.		2,625		49,415
Sprint Corp.*		30,275		155,311
Telephone & Data Systems, Inc.		31,500		841,365
T-Mobile U.S., Inc.*		5,075		172,753
United States Cellular Corp.*		4,900		180,957
				1,814,035
Total Common Stocks (Cost $603,000,512)				772,291,583
	No. of Warrants
WARRANTS – 0.0%^†
Magnum Hunter Resources Corp., expiring 04/15/16 at 8.50 USD* ^		2,849		—
Total Warrants (Cost $–)				—
Total Investment Securities (Cost $603,000,512) – 99.6%				772,291,583
Other assets less liabilities – 0.4%				3,265,274
NET ASSETS – 100.0%			$	775,556,857

See Accompanying Notes to the Financial Statements.


58		FLEXSHARES SEMIANNUAL REPORT

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

*	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 April 30, 2015, the value of these securities amounted to $0 or 0.00% of net assets.

^†	Amount represents less than 0.05%.

Percentages shown are based on Net Assets.

Abbreviations:

REIT – Real Estate Investment Trust

USD – US Dollar

As of April 30, 2015, 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	$	175,118,835
Aggregate gross unrealized depreciation		(5,435,818	)
Net unrealized appreciation	$	169,683,017
Federal income tax cost of investments	$	602,608,566

Investment in a company which was affiliated for the period ending April 30, 2015, was as follows:

Security

Value
October 31, 2014

Purchases
at Cost

Sales at Cost

Value
April 30, 2015

Dividend
Income

Realized

Gain

Northern Trust Corp.

399,126

9,147

1,294

448,044

4,019

1,143

Futures Contracts

FlexShares^® Morningstar US Market Factor Tilt Index Fund had the following open long futures contracts as of April 30, 2015:


	Number of Contracts		Expiration Date		Notional Amount at Value		Unrealized Appreciation
E-mini S&P 400^® Index Futures Contracts		4		06/19/15	$	598,600	$	6,835
E-mini S&P 500^® Index Futures Contracts		17		06/19/15		1,767,065		36,005
Russell 2000^® Mini Index Futures Contracts		11		06/19/15		1,338,040		9,215
							$	52,055

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			59

Schedule of Investments

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

April 30, 2015 (Unaudited)


	Shares		Value
COMMON STOCKS – 98.8%
Aerospace & Defense – 1.0%
Airbus Group N.V.		15,707	$	1,091,230
BAE Systems PLC		87,211		680,829
Bombardier, Inc., Class A		800		1,664
Bombardier, Inc., Class B		34,642		69,785
CAE, Inc.		7,384		91,260
Chemring Group PLC		39,249		129,679
Cobham PLC		38,790		177,043
Elbit Systems Ltd.		412		32,618
Finmeccanica SpA*		9,150		117,397
Kongsberg Gruppen ASA		2,303		49,510
MacDonald Dettwiler & Associates Ltd.		250		19,769
Meggitt PLC		21,066		171,578
MTU Aero Engines AG		4,484		442,512
QinetiQ Group PLC		63,647		198,162
Rolls-Royce Holdings PLC* ^		6,871,635		10,560
Rolls-Royce Holdings PLC*		48,735		783,386
Saab AB, Class B		3,693		95,572
Safran S.A.		6,660		486,952
Senior PLC		34,426		166,437
Singapore Technologies Engineering Ltd.		47,000		128,451
Thales S.A.		3,378		205,310
Ultra Electronics Holdings PLC		5,403		144,141
Zodiac Aerospace		4,510		165,609
				5,459,454
Air Freight & Logistics – 0.6%
Bollore S.A.		6,600		37,740
Cia de Distribucion Integral
Logista Holdings SAU*		8,095		172,800
CTT-Correios de Portugal S.A.		6,883		77,706
CWT Ltd.		700		1,015
Deutsche Post AG (Registered)		26,066		863,250
Financiere de L’Odet		39		45,436
Freightways Ltd.		5,961		27,730
Kerry Logistics Network Ltd.		26,000		41,996
Kintetsu World Express, Inc.		800		37,035
Konoike Transport Co., Ltd.		7,600		81,290
Mainfreight Ltd.		3,192		37,425


	Shares		Value
Air Freight & Logistics – (continued)
Mitsui-Soko Holdings Co., Ltd.		13,000	$	45,734
Oesterreichische Post AG		1,006		48,862
Panalpina Welttransport Holding AG (Registered)		795		110,905
PostNL N.V.*		105,120		526,178
Royal Mail PLC		12,166		87,442
Singapore Post Ltd.		5,000		7,210
TNT Express N.V.		96,653		825,280
Toll Holdings Ltd.		25,369		179,688
Yamato Holdings Co., Ltd.		9,100		204,478
Yusen Logistics Co., Ltd.		2,100		25,708
				3,484,908
Airlines – 0.2%
Aegean Airlines S.A.*		2,412		20,271
Aer Lingus Group PLC		79,187		205,861
Air France-KLM*		26,752		231,122
Air New Zealand Ltd.		2,717		5,585
ANA Holdings, Inc.		35,000		97,042
Cathay Pacific Airways Ltd.		27,000		69,598
Deutsche Lufthansa AG (Registered)*		5,746		79,840
easyJet PLC		2,212		61,629
International Consolidated Airlines Group S.A.*		19,872		166,434
Japan Airlines Co., Ltd.		5,000		167,126
Norwegian Air Shuttle ASA*		532		22,309
Qantas Airways Ltd.*		22,594		60,413
Singapore Airlines Ltd.		18,100		166,713
Virgin Australia Holdings Ltd.*		108,255		43,547
				1,397,490
Auto Components – 1.7%
Aisin Seiki Co., Ltd.		4,500		206,443
Akebono Brake Industry Co., Ltd.		14,500		51,011
ARB Corp. Ltd.		1,725		17,116
Brembo SpA		2,982		119,291
Bridgestone Corp.		18,000		755,227
Calsonic Kansei Corp.		6,000		43,720
Cie Generale des Etablissements Michelin		4,960		553,959
Continental AG*		2,805		662,103

See Accompanying Notes to the Financial Statements.


60		FLEXSHARES SEMIANNUAL REPORT

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


	Shares		Value
COMMON STOCKS – (continued)
Auto Components – (continued)
Daido Metal Co., Ltd.		4,000	$	43,653
Denso Corp.		11,900		593,061
Eagle Industry Co., Ltd.		6,600		134,019
ElringKlinger AG		2,512		69,371
Exedy Corp.		7,500		185,385
F.C.C. Co., Ltd.		6,800		110,862
Faurecia		11,589		550,349
GKN PLC		44,733		241,496
G-Tekt Corp.		2,800		26,978
HI-LEX Corp.		3,164		101,659
Keihin Corp.		7,500		123,465
Koito Manufacturing Co., Ltd.		2,000		70,527
KYB Co., Ltd.		51,000		194,334
Leoni AG		6,385		411,897
Linamar Corp.		2,133		126,193
Magna International, Inc.		11,256		565,007
Martinrea International, Inc.		18,374		182,792
Mitsuba Corp.		6,700		142,488
Musashi Seimitsu Industry Co., Ltd.		4,200		89,426
Nexteer Automotive Group Ltd.		46,000		51,928
NGK Spark Plug Co., Ltd.		5,500		154,884
NHK Spring Co., Ltd.		2,100		24,146
Nifco, Inc.		200		7,111
Nippon Seiki Co., Ltd.		3,000		60,191
Nissan Shatai Co., Ltd.		1,000		12,911
Nissin Kogyo Co., Ltd.		6,800		112,509
NOK Corp.		800		25,370
Nokian Renkaat Oyj		3,803		124,051
Pirelli & C. SpA		8,062		139,573
Plastic Omnium S.A.		10,992		306,757
Press Kogyo Co., Ltd.		20,000		89,245
Sanden Holdings Corp.		22,000		103,134
Showa Corp.		8,700		92,256
Stanley Electric Co., Ltd.		3,800		85,831
Sumitomo Electric Industries Ltd.		22,900		324,929
Sumitomo Riko Co., Ltd.		7,600		66,048
Sumitomo Rubber Industries Ltd.		4,000		74,237
Tachi-S Co., Ltd.		3,900		59,997
Takata Corp.		8,300		102,857
Tokai Rika Co., Ltd.		2,600		63,745
Topre Corp.		10,000		161,695
Toyo Tire & Rubber Co., Ltd.		2,700		51,735
Toyoda Gosei Co., Ltd.		200		4,648


	Shares		Value
Auto Components – (continued)
Toyota Industries Corp.		4,500	$	256,455
TPR Co., Ltd.		5,600		147,873
TS Tech Co., Ltd.		1,100		32,861
Unipres Corp.		9,300		192,264
Valeo S.A.		1,846		296,421
Xinyi Glass Holdings Ltd.		10,000		6,683
The Yokohama Rubber Co., Ltd.		5,000		53,856
Yorozu Corp.		2,200		44,930
				9,702,963
Automobiles – 2.8%
Bayerische Motoren Werke AG		8,733		1,038,269
Bayerische Motoren Werke AG (Preference)		1,878		172,287
Daihatsu Motor Co., Ltd.		4,200		60,928
Daimler AG (Registered)		26,227		2,537,123
Fiat Chrysler Automobiles N.V.*		22,435		335,613
Fuji Heavy Industries Ltd.		15,200		511,176
Honda Motor Co., Ltd.		42,800		1,445,443
Isuzu Motors Ltd.		19,200		255,663
Mazda Motor Corp.		15,300		300,899
Mitsubishi Motors Corp.		20,600		190,559
Nissan Motor Co., Ltd.		63,000		658,586
Peugeot S.A.*		17,205		325,816
Piaggio & C SpA		4,425		13,447
Porsche Automobil Holding SE (Preference)		3,642		348,113
Renault S.A.		4,953		522,263
Suzuki Motor Corp.		9,700		314,701
Toyota Motor Corp.		72,900		5,091,487
Volkswagen AG		766		195,101
Volkswagen AG (Preference)		4,603		1,193,794
Yamaha Motor Co., Ltd.		5,800		137,209
				15,648,477
Banks – 11.2%
The 77 Bank Ltd.		1,000		5,791
The Aichi Bank Ltd.		1,200		62,873
The Akita Bank Ltd.		33,000		102,031
Aktia Bank Oyj		4,665		57,083
Alpha Bank AE*		69,491		24,217
The Aomori Bank Ltd.		31,000		102,582
Aozora Bank Ltd.		35,000		131,027
Ashikaga Holdings Co., Ltd.		18,800		78,706
Australia & New Zealand Banking Group Ltd.		70,909		1,901,043

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			61

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


	Shares		Value
COMMON STOCKS – (continued)
Banks – (continued)
The Awa Bank Ltd.		6,000	$	35,748
Banca Carige SpA*		1,547,333		126,572
Banca Monte dei Paschi di Siena SpA*		81,717		50,637
Banca Popolare dell’Emilia Romagna SC*		17,778		147,317
Banca Popolare di Milano Scarl*		157,321		163,241
Banca Popolare di Sondrio Scarl		33,870		154,772
Banco Bilbao Vizcaya Argentaria S.A.		162,558		1,639,389
Banco BPI S.A. (Registered)*		15,225		24,908
Banco Comercial Portugues S.A., Class R*		941,037		93,954
Banco de Sabadell S.A.*		141,710		380,627
Banco Espirito Santo S.A. (Registered)* ^		48,647		545
Banco Popolare SC*		9,352		148,912
Banco Popular Espanol S.A.		45,172		236,282
Banco Popular Español S.A.^		171		895
Banco Santander S.A.		372,723		2,821,675
Banco Santander S.A.* ^		8,102		61,336
Bank Hapoalim BM		31,696		158,734
Bank Leumi Le-Israel BM*		45,406		176,627
The Bank of East Asia Ltd.		37,881		164,697
Bank of Georgia Holdings PLC		7,636		210,754
Bank of Ireland*		577,485		223,250
The Bank of Iwate Ltd.		3,600		161,845
The Bank of Kyoto Ltd.		13,000		142,199
Bank of Montreal		17,916		1,165,853
The Bank of Nagoya Ltd.		10,000		36,851
The Bank of Nova Scotia		32,763		1,799,564
The Bank of Okinawa Ltd.		400		16,947
Bank of Queensland Ltd.		13,965		143,414
Bank of the Ryukyus Ltd.		5,561		81,693
The Bank of Yokohama Ltd.		36,000		229,712
Bankia S.A.*		105,808		147,848
Bankinter S.A.		17,075		129,610
Banque Cantonale Vaudoise (Registered)		273		160,554
Barclays PLC		435,860		1,710,019
Bendigo & Adelaide Bank Ltd.		13,772		131,330
Berner Kantonalbank AG (Registered)		259		55,289


	Shares		Value
Banks – (continued)
BNP Paribas S.A.		27,364	$	1,730,605
CaixaBank S.A.		48,764		245,126
Canadian Imperial Bank of Commerce		10,847		867,581
Canadian Western Bank		1,676		43,407
The Chiba Bank Ltd.		23,000		189,889
The Chugoku Bank Ltd.		1,000		16,111
comdirect bank AG		411		4,370
Commerzbank AG*		26,653		362,723
Commonwealth Bank of Australia		42,570		2,983,996
Credit Agricole S.A.		27,768		432,660
Credito Emiliano SpA		4,982		41,814
Credito Valtellinese SC*		97,451		122,303
Dah Sing Banking Group Ltd.		24,640		53,723
Dah Sing Financial Holdings Ltd.		5,340		37,581
The Daishi Bank Ltd.		8,000		30,283
Danske Bank A/S		18,543		526,220
DBS Group Holdings Ltd.		46,858		746,091
Deutsche Postbank AG		611		25,182
DNB ASA		26,642		473,761
The Eighteenth Bank Ltd.		28,000		91,719
Erste Group Bank AG		6,123		174,135
Eurobank Ergasias S.A.*		304,426		46,052
FIBI Holdings Ltd.		1,717		27,663
The Fukui Bank Ltd.		36,000		81,223
Fukuoka Financial Group, Inc.		22,000		126,849
The Gunma Bank Ltd.		2,000		14,222
The Hachijuni Bank Ltd.		15,000		117,448
Hang Seng Bank Ltd.		22,500		439,193
The Higashi-Nippon Bank Ltd.		29,000		102,749
The Higo Bank Ltd.		8,000		51,542
The Hiroshima Bank Ltd.		17,000		99,724
The Hokkoku Bank Ltd.		17,000		61,795
The Hokuetsu Bank Ltd.		30,000		60,416
Hokuhoku Financial Group, Inc.		32,000		76,744
HSBC Holdings PLC		511,683		5,096,197
The Hyakugo Bank Ltd.		23,000		113,395
The Hyakujushi Bank Ltd.		10,000		34,512
ING Groep N.V. (CVA)*		103,455		1,599,206
Intesa Sanpaolo SpA		311,908		1,054,118
Intesa Sanpaolo SpA (Retirement Savings Plan)		10,035		30,676
Israel Discount Bank Ltd., Class A*		3,293		5,789

See Accompanying Notes to the Financial Statements.


62		FLEXSHARES SEMIANNUAL REPORT

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


	Shares		Value
COMMON STOCKS – (continued)
Banks – (continued)
The Iyo Bank Ltd.		6,000	$	75,006
The Joyo Bank Ltd.		23,000		126,080
The Juroku Bank Ltd.		19,000		75,892
Jyske Bank A/S (Registered)*		1,814		88,957
The Kagoshima Bank Ltd.		7,000		50,598
Kansai Urban Banking Corp.		5,900		64,685
KBC Groep N.V.*		7,200		475,042
The Keiyo Bank Ltd.		5,000		29,749
The Kiyo Bank Ltd.		19,200		276,280
Laurentian Bank of Canada		7,568		301,720
Liechtensteinische Landesbank AG		3,696		149,513
Lloyds Banking Group PLC		1,518,123		1,805,256
Luzerner Kantonalbank AG (Registered)		162		62,594
The Minato Bank Ltd.		29,000		71,488
Mitsubishi UFJ Financial Group, Inc.		326,000		2,331,607
The Miyazaki Bank Ltd.		45,000		179,368
Mizrahi Tefahot Bank Ltd.*		4,192		46,913
Mizuho Financial Group, Inc.		596,300		1,139,582
The Musashino Bank Ltd.		3,200		116,454
The Nanto Bank Ltd.		23,468		85,110
National Australia Bank Ltd.		60,681		1,759,891
National Bank of Canada		9,006		362,471
National Bank of Greece S.A.*		60,673		84,984
Natixis S.A.		26,799		221,799
The Nishi-Nippon City Bank Ltd.		18,000		57,608
Nordea Bank AB		73,905		939,926
North Pacific Bank Ltd.		6,000		23,765
The Ogaki Kyoritsu Bank Ltd.		35,000		118,158
The Oita Bank Ltd.		18,000		70,694
Oversea-Chinese Banking Corp. Ltd.		84,294		679,672
Piraeus Bank S.A.*		63,248		28,066
Raiffeisen Bank International AG		2,526		42,429
Resona Holdings, Inc.		54,300		291,170
Royal Bank of Canada		36,174		2,392,486
Royal Bank of Scotland Group PLC*		74,681		388,483
The San-In Godo Bank Ltd.		6,000		57,608
Senshu Ikeda Holdings, Inc.		15,100		67,002


	Shares		Value
Banks – (continued)
Seven Bank Ltd.		19,000	$	102,724
The Shiga Bank Ltd.		1,000		5,281
The Shikoku Bank Ltd.		45,000		96,265
Shinsei Bank Ltd.		37,000		76,059
The Shizuoka Bank Ltd.		8,000		88,510
Skandinaviska Enskilda Banken AB, Class A		38,071		482,364
Societe Generale S.A.		19,142		958,903
Spar Nord Bank A/S		12,203		131,924
Sparebank 1 Nord Norge		15,002		87,995
SpareBank 1 SMN		7,238		64,595
St. Galler Kantonalbank AG (Registered)		649		246,432
Standard Chartered PLC		66,245		1,089,281
Sumitomo Mitsui Financial Group, Inc.		33,500		1,467,427
Sumitomo Mitsui Trust Holdings, Inc.		80,000		354,508
Suruga Bank Ltd.		4,500		99,799
Svenska Handelsbanken AB, Class A		13,276		612,737
Swedbank AB, Class A		22,371		520,807
Sydbank A/S		14,405		541,377
The Tochigi Bank Ltd.		16,000		86,505
The Toho Bank Ltd.		22,732		96,308
TOMONY Holdings, Inc.		31,700		150,725
The Toronto-Dominion Bank		46,081		2,119,060
TSB Banking Group PLC(a) *		15,492		79,778
UniCredit SpA		117,450		848,876
Unione di Banche Italiane SCPA		24,480		195,584
United Overseas Bank Ltd.		36,044		666,428
Valiant Holding AG (Registered)		3,172		284,901
Westpac Banking Corp.		79,796		2,294,759
The Yamagata Bank Ltd.		13,000		58,010
Yamaguchi Financial Group, Inc.		8,000		100,410
The Yamanashi Chuo Bank Ltd.		17,000		79,410
Zuger Kantonalbank AG		4		20,450
				63,284,044
Beverages – 1.7%
A.G.Barr PLC		10,780		103,373
Anheuser-Busch InBev N.V.		21,384		2,609,445
Asahi Group Holdings Ltd.		9,800		315,734

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			63

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


	Shares		Value
COMMON STOCKS – (continued)
Beverages – (continued)
Britvic PLC		13,584	$	151,763
C&C Group PLC		30,903		125,147
Carlsberg A/S, Class B		2,836		258,476
Coca-Cola Amatil Ltd.		11,766		95,310
Coca-Cola East Japan Co., Ltd.		2,606		48,823
Coca-Cola HBC AG*		4,146		87,861
Coca-Cola West Co., Ltd.		1,000		15,927
Corby Spirit and Wine Ltd.		638		12,383
Cott Corp.		22,702		197,172
Davide Campari-Milano SpA		6,897		53,403
Diageo PLC		64,695		1,800,994
Heineken Holding N.V.		2,700		188,306
Heineken N.V.		6,315		497,887
Ito En Ltd.		200		4,161
Kirin Holdings Co., Ltd.		16,738		221,831
Molson Coors Canada, Inc., Class B		620		45,413
Pernod-Ricard S.A.		5,852		727,878
Remy Cointreau S.A.		2,228		167,746
Royal Unibrew A/S		626		119,936
SABMiller PLC		24,975		1,329,111
Sapporo Holdings Ltd.		2,000		7,838
Suntory Beverage & Food Ltd.		3,000		128,102
Takara Holdings, Inc.		3,000		22,437
Treasury Wine Estates Ltd.		20,813		91,439
				9,427,896
Biotechnology – 0.4%
3-D Matrix Ltd.*		600		7,536
Abcam PLC		7,151		57,749
Actelion Ltd. (Registered)*		3,087		408,569
CK Life Sciences International Holdings, Inc.		48,000		5,511
CSL Ltd.		13,165		944,727
Genmab A/S*		3,247		250,594
Genus PLC		10,486		217,060
Grifols S.A.		2,331		99,374
Grifols S.A. (Preference), Class B		3,952		129,088
Japan Tissue Engineering Co., Ltd.*		418		5,023
Mesoblast Ltd.*		14,771		41,942
Pacific Edge Ltd.*		46,742		26,690


	Shares		Value
Biotechnology – (continued)
PeptiDream, Inc.*		100	$	9,986
ProMetic Life Sciences, Inc.*		40,800		80,505
Sirtex Medical Ltd.		4,157		69,675
Swedish Orphan Biovitrum AB*		7,900		126,773
Takara Bio, Inc.		200		2,255
				2,483,057
Building Products – 0.7%
Aica Kogyo Co., Ltd.		1,500		34,482
Asahi Glass Co., Ltd.		18,000		121,233
Assa Abloy AB, Class B		8,776		509,617
Belimo Holding AG (Registered)		21		50,769
Central Glass Co., Ltd.		45,000		207,947
Cie de Saint-Gobain		11,488		523,926
Daikin Industries Ltd.		5,800		392,773
Geberit AG (Registered)		1,037		368,910
GWA Group Ltd.		7,794		15,369
James Halstead PLC		4,475		22,900
Kingspan Group PLC		2,446		48,568
Lindab International AB		2,940		25,667
LIXIL Group Corp.		6,100		127,587
Nibe Industrier AB, Class B		4,233		112,740
Nichias Corp.		18,000		108,900
Nippon Sheet Glass Co., Ltd.*		181,000		184,524
Nitto Boseki Co., Ltd.		9,000		34,445
Noritz Corp.		5,600		96,164
Okabe Co., Ltd.		11,400		100,120
Rockwool International A/S, Class B		82		10,860
Sankyo Tateyama, Inc.		4,600		86,180
Sanwa Holdings Corp.		8,000		60,567
Sekisui Jushi Corp.		5,000		66,892
Takara Standard Co., Ltd.		5,752		46,912
Takasago Thermal Engineering Co., Ltd.		1,200		15,613
Tarkett S.A.		3,998		107,609
TOTO Ltd.		6,000		85,234
Uponor Oyj		6,174		95,265
Wienerberger AG		3,084		50,092
				3,711,865
Capital Markets – 2.4%
3i Group PLC		32,080		249,699

See Accompanying Notes to the Financial Statements.


64		FLEXSHARES SEMIANNUAL REPORT

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


	Shares		Value
COMMON STOCKS – (continued)
Capital Markets – (continued)
Aberdeen Asset Management PLC		22,926	$	167,385
AGF Management Ltd., Class B		14,922		95,107
Alaris Royalty Corp.		1,680		48,198
Allied Properties HK Ltd.		266,000		65,203
Anima Holding SpA(a) *		40,450		361,250
ARA Asset Management Ltd.		15,200		19,853
Ashmore Group PLC		16,969		80,630
Avanza Bank Holding AB		807		34,695
Azimut Holding SpA		3,015		88,853
Brederode S.A.		3,253		135,126
Brewin Dolphin Holdings PLC		22,578		117,761
BT Investment Management Ltd.		6,705		50,506
Canaccord Genuity Group, Inc.		20,386		116,636
CI Financial Corp.		3,917		114,672
Close Brothers Group PLC		6,232		146,529
Credit Suisse Group AG (Registered)*		39,331		1,041,102
Daiwa Securities Group, Inc.		45,000		376,034
Deutsche Bank AG (Registered)		35,702		1,149,169
Dundee Corp., Class A*		2,815		27,005
EFG International AG*		7,120		104,874
Financiere de Tubize S.A.		179		10,659
GAM Holding AG*		39,401		893,661
Gimv N.V.		2,702		125,802
Gluskin Sheff + Associates, Inc.		1,600		37,541
Guoco Group Ltd.		3,000		36,769
Haitong International Securities Group Ltd.		84,000		93,741
Hargreaves Lansdown PLC		4,568		86,344
Henderson Group PLC		12,382		53,145
ICAP PLC		24,310		207,899
Ichigo Group Holdings Co., Ltd.		9,700		26,830
Ichiyoshi Securities Co., Ltd.		7,100		76,535
IGM Financial, Inc.		3,285		123,752
Intermediate Capital Group PLC		73,307		594,253
Investec PLC		20,123		193,275
IOOF Holdings Ltd.		11,826		94,024
IP Group PLC*		35,046		106,098
Jafco Co., Ltd.		300		11,344
Julius Baer Group Ltd.*		5,222		275,229
Jupiter Fund Management PLC		20,322		134,882
kabu.com Securities Co., Ltd.		2,000		14,741


	Shares		Value
Capital Markets – (continued)
Kyokuto Securities Co., Ltd.		2,700	$	40,725
Leonteq AG*		590		101,262
Macquarie Group Ltd.		7,265		446,789
Magellan Financial Group Ltd.		4,385		69,035
Man Group PLC		75,215		222,851
Marusan Securities Co., Ltd.		13,700		138,294
Matsui Securities Co., Ltd.		1,300		12,178
Mediobanca SpA		19,731		192,795
Monex Group, Inc.		41,800		114,568
Nomura Holdings, Inc.		89,300		577,126
Okasan Securities Group, Inc.		4,000		30,618
Paris Orleans S.A.		2,313		58,575
Partners Group Holding AG		542		170,369
Perpetual Ltd.		2,507		107,096
Platinum Asset Management Ltd.		10,774		64,245
Rathbone Brothers PLC		3,559		117,043
Ratos AB, Class B		11,263		76,680
SBI Holdings, Inc.		5,200		69,568
Schroders PLC		2,457		122,600
Schroders PLC (Non-Voting)		1,249		46,929
Sprott, Inc.		1,700		3,719
Sun Hung Kai & Co., Ltd.		181,996		189,717
SVG Capital PLC*		16,077		123,334
Tetragon Financial Group Ltd.		9,832		96,550
Tokai Tokyo Financial Holdings, Inc.		2,200		17,023
Tullett Prebon PLC		42,128		231,899
UBS Group AG*		100,002		2,013,062
UOB-Kay Hian Holdings Ltd.		36,518		42,182
Value Partners Group Ltd.		68,000		126,330
Vontobel Holding AG (Registered)		6,985		310,146
VZ Holding AG		178		37,998
				13,758,117
Chemicals – 3.6%
ADEKA Corp.		4,200		59,418
Agrium, Inc.		4,259		439,525
Air Liquide S.A.		9,352		1,223,992
Air Water, Inc.		3,000		53,372
Akzo Nobel N.V.		6,390		489,909
Alent PLC		16,912		93,614
Arkema S.A.		14,866		1,198,050
Asahi Kasei Corp.		33,000		312,158

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			65

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


	Shares		Value
COMMON STOCKS – (continued)
Chemicals – (continued)
BASF SE		23,086	$	2,314,760
Borregaard ASA		5,792		44,773
C Uyemura & Co., Ltd.		1,100		54,508
Canexus Corp.		18,300		30,217
Chr Hansen Holding A/S		4,097		198,391
Chugoku Marine Paints Ltd.		15,000		130,860
Clariant AG (Registered)*		7,130		156,770
Croda International PLC		3,512		153,007
Daicel Corp.		6,000		72,650
Dainichiseika Color & Chemicals
Manufacturing Co., Ltd.		10,000		54,316
Denki Kagaku Kogyo KK		2,000		8,189
DIC Corp.		8,000		24,334
DuluxGroup Ltd.		21,085		105,273
Elementis PLC		39,331		184,046
EMS-Chemie Holding AG (Registered)		114		47,941
Essentra PLC		18,222		269,106
Evonik Industries AG		3,249		125,366
Frutarom Industries Ltd.		1,635		69,610
FUCHS PETROLUB SE
(Preference)		3,214		136,071
Fujimori Kogyo Co., Ltd.		2,200		69,399
Givaudan S.A. (Registered)*		225		423,151
Hexpol AB		574		61,453
Hitachi Chemical Co., Ltd.		1,700		33,028
Ihara Chemical Industry Co., Ltd.		5,600		73,094
Incitec Pivot Ltd.		52,165		164,169
Israel Chemicals Ltd.		6,739		47,179
The Israel Corp. Ltd.		37		13,636
Johnson Matthey PLC		5,311		273,008
JSP Corp.		2,500		47,422
JSR Corp.		3,900		66,841
K+S AG (Registered)		6,010		197,456
Kaneka Corp.		1,000		6,986
Kansai Paint Co., Ltd.		6,000		107,445
Kemira Oyj		5,578		65,442
Koninklijke DSM N.V.		4,377		249,892
Kumiai Chemical Industry Co., Ltd.		5,000		44,247
Kuraray Co., Ltd.		9,600		130,439
Kureha Corp.		26,000		119,713


	Shares		Value
Chemicals – (continued)
Lanxess AG		19,864	$	1,065,631
Lenzing AG		485		32,907
Linde AG		4,952		969,959
Lintec Corp.		1,800		44,327
Methanex Corp.		3,396		203,578
Mitsubishi Chemical Holdings Corp.		45,500		284,133
Mitsubishi Gas Chemical Co., Inc.		11,000		61,770
Mitsui Chemicals, Inc.		11,000		36,492
Nihon Nohyaku Co., Ltd.		11,100		117,057
Nihon Parkerizing Co., Ltd.		2,000		22,813
Nippon Kayaku Co., Ltd.		3,000		36,400
Nippon Paint Holdings Co., Ltd.		3,000		101,028
Nippon Shokubai Co., Ltd.		1,000		13,871
Nippon Soda Co., Ltd.		25,198		157,501
The Nippon Synthetic Chemical Industry Co., Ltd.		9,000		63,324
Nissan Chemical Industries Ltd.		3,800		75,543
Nitto Denko Corp.		4,500		289,433
NOF Corp.		8,000		61,770
Novozymes A/S, Class B		6,887		318,291
Nufarm Ltd.		44,119		253,684
Nuplex Industries Ltd.		15,434		39,482
Orica Ltd.		10,665		169,923
Potash Corp. of Saskatchewan, Inc.		20,861		678,574
Sakata INX Corp.		7,100		67,636
Sanyo Chemical Industries Ltd.		10,000		77,964
Shin-Etsu Chemical Co., Ltd.		11,000		676,067
Showa Denko KK		30,000		41,113
Sika AG		64		220,369
Solvay S.A.		1,351		199,224
Sumitomo Bakelite Co., Ltd.		47,000		215,225
Sumitomo Chemical Co., Ltd.		45,000		253,823
Symrise AG		2,612		159,398
Syngenta AG (Registered)		2,311		775,513
Synthomer PLC		42,022		206,195
T Hasegawa Co., Ltd.		4,600		67,576
Taiyo Holdings Co., Ltd.		900		31,098
Takasago International Corp.		23,000		106,668
Teijin Ltd.		11,000		37,411
Tessenderlo Chemie N.V.*		786		25,850
Tikkurila Oyj		2,026		41,795

See Accompanying Notes to the Financial Statements.


66		FLEXSHARES SEMIANNUAL REPORT

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


	Shares		Value
COMMON STOCKS – (continued)
Chemicals – (continued)
Toagosei Co., Ltd.		49,000	$	218,242
Tokai Carbon Co., Ltd.		11,000		32,356
Tokuyama Corp.*		66,000		147,806
Toray Industries, Inc.		36,000		313,312
Tosoh Corp.		23,000		123,774
Toyo Ink SC Holdings Co., Ltd.		8,000		38,172
Toyobo Co., Ltd.		2,000		3,058
Ube Industries Ltd.		15,000		24,944
Umicore S.A.		3,835		190,650
Victrex PLC		7,112		216,183
Wacker Chemie AG		136		17,007
Yara International ASA		5,829		298,895
Zeon Corp.		5,000		45,041
				20,214,082
Commercial Services & Supplies – 1.2%
AA PLC*		11,968		76,768
Aeon Delight Co., Ltd.		2,300		61,022
Aggreko PLC		7,155		181,535
Babcock International Group PLC		12,278		190,380
Berendsen PLC		9,888		157,728
Bilfinger SE		10,532		528,005
Black Diamond Group Ltd.		1,700		23,761
Brambles Ltd.		37,152		317,358
Caverion Corp.		1,496		14,735
Dai Nippon Printing Co., Ltd.		17,000		176,506
Daiseki Co., Ltd.		2,500		44,706
De La Rue PLC		19,386		163,704
Downer EDI Ltd.		7,322		25,584
Duskin Co., Ltd.		200		3,433
Edenred		5,281		141,461
G4S PLC		31,817		143,262
HomeServe PLC		39,815		233,729
Intrum Justitia AB		3,964		124,801
ISS A/S		2,459		83,037
Kaba Holding AG (Registered), Class B*		285		187,384
Kokuyo Co., Ltd.		5,600		51,054
Lassila & Tikanoja Oyj		6,414		125,776
Loomis AB, Class B		6,080		194,406
Mineral Resources Ltd.		42,646		218,641
Mitie Group PLC		75,725		333,401


	Shares		Value
Commercial Services & Supplies – (continued)
Mitsubishi Pencil Co., Ltd.		900	$	34,294
Moshi Moshi Hotline, Inc.		2,100		22,760
Nissha Printing Co., Ltd.		5,600		108,285
Okamura Corp.		4,600		35,902
Oyo Corp.		1,100		14,523
Park24 Co., Ltd.		2,200		43,993
PayPoint PLC		4,015		52,569
Pilot Corp.		1,300		70,285
Progressive Waste Solutions Ltd.		824		23,722
Prosegur Cia de Seguridad S.A.		19,123		110,356
Recall Holdings Ltd.		20,504		118,060
Regus PLC		38,932		149,273
Rentokil Initial PLC		84,249		173,878
Ritchie Bros Auctioneers, Inc.		166		4,184
RPS Group PLC		31,365		102,666
Sato Holdings Corp.		1,100		25,544
Secom Co., Ltd.		5,000		354,809
Securitas AB, Class B		11,901		177,866
Serco Group PLC		139,519		286,446
Societe BIC S.A.		1,133		193,675
Sohgo Security Services Co., Ltd.		1,000		32,631
Tomra Systems ASA		10,885		105,809
Toppan Forms Co., Ltd.		7,100		85,732
Toppan Printing Co., Ltd.		12,000		100,978
Transcontinental, Inc., Class A		11,501		176,420
Transfield Services Ltd.*		130,028		148,199
Transpacific Industries Group Ltd.		105,891		63,894
				6,618,930
Communications Equipment – 0.4%
Alcatel-Lucent*		73,467		259,401
Ei Towers SpA*		231		14,004
Hitachi Kokusai Electric, Inc.		1,000		13,972
Japan Radio Co., Ltd.		5,000		18,885
Nokia Oyj		98,710		668,634
Pace PLC		59,047		376,573
Sierra Wireless, Inc.*		2,800		97,991
Spirent Communications PLC		29,594		39,908
Telefonaktiebolaget LM Ericsson, Class A		1,434		15,052
Telefonaktiebolaget LM Ericsson, Class B		80,371		880,194
VTech Holdings Ltd.		2,500		34,801
				2,419,415

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			67

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


	Shares		Value
COMMON STOCKS – (continued)
Construction & Engineering – 1.9%
Abengoa S.A., Class B		101,461	$	329,594
ACS Actividades de Construccion y Servicios S.A.		5,687		200,895
Aecon Group, Inc.		6,221		67,333
AF Gruppen ASA*		5,941		81,994
Arcadis N.V.		5,278		167,285
Badger Daylighting Ltd.		2,361		58,360
Balfour Beatty PLC		154,596		576,358
Boskalis Westminster N.V.		1,299		67,685
Bouygues S.A.		5,266		217,917
Cardno Ltd.		26,281		71,723
Carillion PLC		98,469		493,916
Chiyoda Corp.		4,000		36,333
Chudenko Corp.		2,300		43,974
Cie d’Entreprises CFE		638		69,025
CIMIC Group Ltd.		1,935		32,188
COMSYS Holdings Corp.		2,000		28,027
Eiffage S.A.		8,509		519,072
Electra Ltd.		552		67,618
Ellaktor S.A.*		30,686		68,770
Ferrovial S.A.		13,807		314,070
FLSmidth & Co. A/S		10,409		445,274
Fomento de Construcciones y Contratas S.A.*		14,310		183,922
Galliford Try PLC		18,938		438,291
Hazama Ando Corp.		5,600		31,914
Hibiya Engineering Ltd.		2,500		33,175
HOCHTIEF AG		1,184		91,836
Interserve PLC		28,810		256,567
JGC Corp.		5,928		123,618
Kajima Corp.		18,000		86,187
Kandenko Co., Ltd.		7,000		44,163
Keller Group PLC		13,614		209,213
Kier Group PLC		11,034		274,865
Kinden Corp.		2,000		28,144
Kumagai Gumi Co., Ltd.		6,000		19,203
Kyowa Exeo Corp.		3,900		45,821
Kyudenko Corp.		4,000		52,845
Maeda Corp.		8,000		58,160
Maeda Road Construction Co., Ltd.		2,000		33,041
Mirait Holdings Corp.		14,200		161,140


	Shares		Value
Construction & Engineering – (continued)
Monadelphous Group Ltd.		25,112	$	196,486
Mota-Engil SGPS S.A.		7,840		27,128
NCC AB, Class A		1,880		61,869
NCC AB, Class B		590		19,346
Nippo Corp.		2,000		33,475
Nippon Densetsu Kogyo Co., Ltd.		7,300		122,795
The Nippon Road Co., Ltd.		15,000		81,349
Nishimatsu Construction Co., Ltd.		13,000		48,124
Obayashi Corp.		16,000		107,362
Obrascon Huarte Lain S.A.		10,158		236,302
OCI N.V.*		3,828		114,121
Okumura Corp.		14,000		67,385
Outotec Oyj		3,963		27,755
Peab AB		40,472		341,695
Penta-Ocean Construction Co., Ltd.		14,500		54,525
Raito Kogyo Co., Ltd.		6,100		48,323
Salini Impregilo SpA*		51,065		224,192
Sanki Engineering Co., Ltd.		7,100		56,838
Shimizu Corp.		10,000		72,282
SHO-BOND Holdings Co., Ltd.		600		26,473
Skanska AB, Class B		10,802		240,609
SNC-Lavalin Group, Inc.		4,500		161,610
Sumitomo Mitsui Construction Co., Ltd.		27,700		38,656
Sweco AB, Class B		1,854		24,423
Taikisha Ltd.		7,100		190,745
Taisei Corp.		30,000		174,229
Toda Corp.		9,000		37,227
Toenec Corp.		5,000		24,860
Tokyu Construction Co., Ltd.		11,100		65,392
Toshiba Plant Systems & Services Corp.		3,800		52,997
Totetsu Kogyo Co., Ltd.		1,200		27,105
Toyo Engineering Corp.		25,000		70,611
United Engineers Ltd.		33,300		66,623
Veidekke ASA		7,529		92,420
Vinci S.A.		12,396		761,468
WSP Global, Inc.		2,172		77,107
YIT Oyj		28,278		201,212
Yokogawa Bridge Holdings Corp.		1,000		11,381
Yurtec Corp.		11,000		70,594
				10,486,610

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)
Construction Materials – 0.5%
Adelaide Brighton Ltd.		8,560	$	30,518
Boral Ltd.		29,121		145,395
Brickworks Ltd.		2,458		28,306
Buzzi Unicem SpA		811		13,114
Buzzi Unicem SpA (Retirement Savings Plan)		5,135		51,096
Cementir Holding SpA		10,424		73,821
CRH PLC		20,027		563,612
CSR Ltd.		57,945		166,820
Fletcher Building Ltd.		17,552		111,048
HeidelbergCement AG		3,735		288,155
Holcim Ltd. (Registered)*		6,492		523,850
Imerys S.A.		632		48,100
Italcementi SpA		5,741		41,107
James Hardie Industries PLC (CDI)		12,738		146,788
Lafarge S.A.		4,862		355,925
RHI AG		3,198		92,061
Sumitomo Osaka Cement Co., Ltd.		3,000		9,802
Taiheiyo Cement Corp.		37,000		116,871
Titan Cement Co. S.A.		1,053		26,549
Vicat		2,303		165,728
				2,998,666
Consumer Finance – 0.2%
Acom Co., Ltd.*		3,300		11,030
AEON Financial Service Co., Ltd.		1,700		43,541
Aiful Corp.*		10,300		35,719
Cembra Money Bank AG		4,628		307,496
Credit Saison Co., Ltd.		5,300		100,756
FlexiGroup Ltd.		25,249		67,911
Hitachi Capital Corp.		600		13,673
Hong Leong Finance Ltd.		14,000		28,009
International Personal Finance PLC		16,121		123,300
J Trust Co., Ltd.		800		8,236
Jaccs Co., Ltd.		27,000		142,366
Orient Corp.*		8,000		12,969
Pocket Card Co., Ltd.		8,800		36,621
Provident Financial PLC		4,278		198,213
				1,129,840
Containers & Packaging – 0.4%
Amcor Ltd.		35,101		374,590


	Shares		Value
Containers & Packaging – (continued)
BillerudKorsnas AB		7,306	$	126,515
Cascades, Inc.		21,771		125,818
CCL Industries, Inc., Class B		696		79,705
DS Smith PLC		33,080		177,823
FP Corp.		600		21,509
Fuji Seal International, Inc.		3,200		95,864
Huhtamaki Oyj		3,814		122,102
Intertape Polymer Group, Inc.		2,867		38,890
Pact Group Holdings Ltd.		43,895		142,643
Rengo Co., Ltd.		35,000		153,547
Rexam PLC		17,561		156,389
RPC Group PLC		25,315		233,806
Smurfit Kappa Group PLC		5,302		162,520
Toyo Seikan Group Holdings Ltd.		5,500		87,415
Winpak Ltd.		1,210		39,170
				2,138,306
Distributors – 0.2%
Breville Group Ltd.		3,137		19,052
Canon Marketing Japan, Inc.		3,700		69,505
D’ieteren S.A./N.V.		4,689		182,927
Doshisha Co., Ltd.		5,400		81,494
Inchcape PLC		18,632		238,224
Jardine Cycle & Carriage Ltd.		2,000		61,017
Paltac Corp.		9,100		130,869
Uni-Select, Inc.		6,273		217,516
				1,000,604
Diversified Consumer Services – 0.1%
Benesse Holdings, Inc.		1,300		40,737
Dignity PLC		5,150		160,660
EnerCare, Inc.		1,424		17,352
G8 Education Ltd.		24,984		71,139
Invocare Ltd.		13,140		138,984
Navitas Ltd.		2,131		7,782
Slater & Gordon Ltd.		23,816		119,096
				555,750
Diversified Financial Services – 1.4%
Ackermans & van Haaren N.V.		607		74,139
ASX Ltd.		6,938		230,659
Banca IFIS SpA		3,735		76,799
Banque Nationale de Belgique		46		171,801

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)
Diversified Financial Services – (continued)
Bolsas y Mercados Espanoles SHMSF S.A.		5,401	$	242,235
Callidus Capital Corp.*		947		12,509
Century Tokyo Leasing Corp.		600		19,052
Challenger Ltd.		22,888		127,634
Coface S.A.*		14,468		180,117
Corp. Financiera Alba S.A.		1,679		85,491
Deutsche Boerse AG		4,817		401,102
Element Financial Corp.*		10,629		151,812
Eurazeo S.A.		3,375		241,698
EXOR SpA		2,589		119,845
FFP*		1,031		85,064
Fimalac		68		6,688
First Pacific Co., Ltd.		34,000		32,986
Fuyo General Lease Co., Ltd.		5,200		213,136
Goldin Financial Holdings Ltd.*		60,000		239,964
GRENKELEASING AG		331		44,137
Groupe Bruxelles Lambert S.A.*		2,802		245,970
HAL Trust		1,891		313,564
Heartland New Zealand Ltd.		119,238		119,832
Hong Kong Exchanges and Clearing Ltd.		29,386		1,124,464
IBJ Leasing Co., Ltd.		6,938		155,956
IG Group Holdings PLC		13,277		150,373
Industrivarden AB, Class A		6,357		136,194
Industrivarden AB, Class C		6,552		136,370
Investment AB Kinnevik, Class A		1,003		34,893
Investment AB Kinnevik, Class B		5,897		203,385
Investment AB Latour, Class B		1,793		55,033
Investor AB, Class A		1,980		78,983
Investor AB, Class B		10,865		442,649
Japan Exchange Group, Inc.		6,200		180,814
Japan Securities Finance Co., Ltd.		5,400		35,513
KBC Ancora*		1,377		51,791
L E Lundbergforetagen AB, Class B		678		31,853
London Stock Exchange Group PLC		5,066		198,444
Mitsubishi UFJ Lease & Finance Co., Ltd.		11,000		59,380
Onex Corp.		3,078		184,617
ORIX Corp.		31,500		488,149
OzForex Group Ltd.		13,843		24,676


	Shares		Value
Diversified Financial Services – (continued)
Pacific Century Regional Developments Ltd.*		49,000	$	16,462
Pargesa Holding S.A.		70		5,099
Ricoh Leasing Co., Ltd.		3,400		99,156
Rowsley Ltd.*		222,000		31,845
Singapore Exchange Ltd.		28,400		182,679
SNS REAAL N.V.* ^		2,857		—
Sofina S.A.		46		5,214
TMX Group Ltd.		425		18,867
Wendel S.A.		2,172		266,748
Wuestenrot & Wuerttembergische AG		1,177		24,485
Zenkoku Hosho Co., Ltd.		1,600		59,230
				7,919,556
Diversified Telecommunication Services – 2.4%
B Communications Ltd.*		3,058		50,352
BCE, Inc.		6,931		304,363
Belgacom S.A.		4,052		151,220
Bezeq The Israeli Telecommunication Corp. Ltd.		43,777		82,959
BT Group PLC		204,393		1,431,515
Cable & Wireless Communications PLC		341,187		353,391
Chorus Ltd.*		29,075		67,516
Colt Group S.A.*		14,363		32,888
Deutsche Telekom AG (Registered)		85,113		1,571,276
Elisa Oyj		4,533		138,618
Hellenic Telecommunications Organization S.A.		4,754		43,149
HKT Trust & HKT Ltd.		87,400		117,042
Hutchison Telecommunications Hong Kong Holdings Ltd.		178,000		82,442
iiNET Ltd.		4,441		34,818
Iliad S.A.		867		204,359
Inmarsat PLC		15,796		244,202
Jazztel PLC*		6,911		99,744
Koninklijke KPN N.V.		88,843		329,421
M2 Group Ltd.		20,762		179,809
Manitoba Telecom Services, Inc.		700		15,008
Nippon Telegraph & Telephone Corp.		9,500		641,748
Orange S.A.		50,629		836,234

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)
Diversified Telecommunication Services – (continued)
PCCW Ltd.		32,035	$	21,367
Portugal Telecom SGPS S.A. (Registered)		8,587		5,514
Singapore Telecommunications Ltd.		226,000		755,864
Spark New Zealand Ltd.		32,757		74,070
Swisscom AG (Registered)		723		429,834
TalkTalk Telecom Group PLC		5,820		32,708
TDC A/S		19,760		150,425
Telecom Italia SpA*		266,941		316,769
Telecom Italia SpA (Retirement Savings Plan)*		148,005		142,628
Telefonica Deutschland Holding AG*		23,802		148,266
Telefonica S.A.		122,340		1,869,882
Telenor ASA		19,848		448,559
TeliaSonera AB		59,762		372,155
Telstra Corp. Ltd.		116,012		570,073
TELUS Corp.		4,974		171,364
TPG Telecom Ltd.		7,176		50,601
Vivendi S.A.		34,591		868,827
				13,440,980
Electric Utilities – 1.2%
Acciona S.A.*		1,068		81,020
Alpiq Holding AG (Registered)*		506		44,016
AusNet Services		32,218		37,483
BKW AG		3,920		153,762
Cheung Kong Infrastructure Holdings Ltd.		19,000		161,292
Chubu Electric Power Co., Inc.		19,600		259,843
The Chugoku Electric Power Co., Inc.		9,606		140,634
CLP Holdings Ltd.		46,500		407,640
Contact Energy Ltd.		4,950		21,406
EDP – Energias de Portugal S.A.		75,691		302,961
Electricite de France S.A.		6,075		154,731
Elia System Operator S.A./N.V.		468		20,736
Emera, Inc.		2,000		67,137
Endesa S.A.		5,606		111,408
Enel SpA		175,739		834,172
Fortis, Inc.		5,997		194,429
Fortum Oyj		13,070		259,227


	Shares		Value
Electric Utilities – (continued)
HK Electric Investments & HK Electric Investments Ltd.(a)		61,500	$	41,893
Hokkaido Electric Power Co., Inc.*		3,500		32,318
Hokuriku Electric Power Co.		2,700		40,025
Iberdrola S.A.		136,689		915,478
Infratil Ltd.		24,925		59,207
The Kansai Electric Power Co., Inc.*		19,400		195,670
Kyushu Electric Power Co., Inc.*		11,300		120,582
Mighty River Power Ltd.		31,509		72,208
The Okinawa Electric Power Co., Inc.		4,700		178,307
Power Assets Holdings Ltd.		39,000		394,722
Public Power Corp. S.A.*		1,519		10,196
Red Electrica Corp. S.A.		2,432		204,416
Romande Energie Holding S.A. (Registered)		58		71,068
Shikoku Electric Power Co., Inc.*		5,000		68,020
Spark Infrastructure Group		8,516		13,098
SSE PLC		29,509		701,533
Terna Rete Elettrica Nazionale SpA		35,416		167,234
Tohoku Electric Power Co., Inc.		14,000		176,302
Tokyo Electric Power Co., Inc.*		52,615		215,437
TrustPower Ltd.		2,903		17,240
Verbund AG		973		16,523
				6,963,374
Electrical Equipment – 1.1%
ABB Ltd. (Registered)*		60,238		1,323,191
Alstom S.A.*		6,355		199,640
Areva S.A.*		5,877		51,037
Cosel Co., Ltd.		700		8,277
Daihen Corp.		16,000		78,349
Fuji Electric Co., Ltd.		24,000		113,512
Fujikura Ltd.		4,000		19,153
Furukawa Electric Co., Ltd.		14,000		25,737
Futaba Corp.		3,400		56,908
Gamesa Corp. Tecnologica S.A.*		18,099		243,776
GS Yuasa Corp.		21,000		99,148
HellermannTyton Group PLC		18,238		96,694
Johnson Electric Holdings Ltd.		10,500		39,081
Legrand S.A.		8,032		464,773

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)
Electrical Equipment – (continued)
Mabuchi Motor Co., Ltd.		2,000	$	119,829
Mitsubishi Electric Corp.		52,000		679,602
Nidec Corp.		5,655		423,404
Nissin Electric Co., Ltd.		8,000		52,478
Nitto Kogyo Corp.		4,600		83,413
OSRAM Licht AG		7,635		403,473
Prysmian SpA		4,606		94,451
Schneider Electric SE		13,174		986,700
SGL Carbon SE*		7,292		118,930
Somfy S.A.		231		69,630
Ushio, Inc.		400		5,268
Vestas Wind Systems A/S		6,855		311,975
				6,168,429
Electronic Equipment, Instruments & Components – 1.4%
Ai Holdings Corp.		2,900		53,119
Alps Electric Co., Ltd.		5,500		137,282
Amano Corp.		12,000		155,628
Anritsu Corp.		30,500		219,696
Avigilon Corp.*		1,976		33,965
Axis Communications AB		3,695		150,272
Azbil Corp.		300		7,922
Barco N.V.		1,067		71,977
Canon Electronics, Inc.		4,600		92,676
Celestica, Inc.*		28,111		341,858
Citizen Holdings Co., Ltd.		3,800		29,944
Domino Printing Sciences PLC		6,630		93,226
Electrocomponents PLC		37,215		138,514
Enplas Corp.		1,800		72,800
Evertz Technologies Ltd.		300		4,084
FIH Mobile Ltd.*		23,000		12,285
Halma PLC		13,226		144,816
Hamamatsu Photonics KK		3,400		99,440
Hexagon AB, Class B		7,630		283,075
Hirose Electric Co., Ltd.		945		133,297
Hitachi High-Technologies Corp.		1,000		29,163
Hitachi Ltd.		135,000		924,254
Horiba Ltd.		300		11,344
Hoya Corp.		11,400		442,111
Ibiden Co., Ltd.		5,100		89,496
Ingenico		1,831		229,999
Iriso Electronics Co., Ltd.		600		41,915


	Shares		Value
Electronic Equipment, Instruments & Components – (continued)
Japan Aviation Electronics Industry Ltd.		2,044	$	49,294
Japan Cash Machine Co., Ltd.		700		10,336
Japan Display, Inc.*		12,700		52,638
Keyence Corp.		1,200		644,573
Kyocera Corp.		8,200		429,700
Laird PLC		34,430		190,265
Mitsumi Electric Co., Ltd.		4,900		36,688
Murata Manufacturing Co., Ltd.		5,100		723,214
Nichicon Corp.		9,600		89,285
Nippon Chemi-Con Corp.*		30,000		90,750
Nippon Electric Glass Co., Ltd.		6,000		34,445
The Nippon Signal Co., Ltd.		13,900		133,924
Nohmi Bosai Ltd.		2,000		25,269
Oki Electric Industry Co., Ltd.		28,000		57,558
Omron Corp.		4,800		221,409
Oxford Instruments PLC		2,593		37,059
Premier Farnell PLC		44,273		129,610
Renishaw PLC		1,617		62,222
Ryosan Co., Ltd.		1,400		33,459
Shimadzu Corp.		3,000		35,297
Spectris PLC		3,906		128,875
Taiyo Yuden Co., Ltd.		2,500		37,060
TDK Corp.		3,200		231,303
Topcon Corp.		1,400		36,383
Truly International Holdings Ltd.		286,000		135,046
Venture Corp. Ltd.		16,000		102,072
Yaskawa Electric Corp.		5,500		76,293
Yokogawa Electric Corp.		8,000		93,724
				7,971,909
Energy Equipment & Services – 0.9%
Akastor ASA*		44,323		86,464
Amec Forster Wheeler PLC		6,525		92,051
Archer Ltd.*		64,778		23,984
Bourbon S.A.		3,910		76,893
BW Offshore Ltd.		30,924		22,981
Calfrac Well Services Ltd.		21,404		177,417
Canadian Energy Services & Technology Corp.		13,327		67,006
Canyon Services Group, Inc.		18,115		122,935
Enerflex Ltd.		4,840		64,653
Ensign Energy Services, Inc.		33,154		263,316

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)
Energy Equipment & Services – (continued)
Ezion Holdings Ltd.		17,280	$	15,720
Ezra Holdings Ltd.*		209,040		69,441
Farstad Shipping ASA		6,275		30,977
Fred Olsen Energy ASA		7,272		65,140
Hilong Holding Ltd.		130,000		49,309
Hunting PLC		38,162		343,369
Japan Drilling Co., Ltd.		100		3,376
John Wood Group PLC		10,233		108,428
Mullen Group Ltd.		7,524		129,950
Newalta Corp.		1,663		22,558
Pacc Offshore Services Holdings Ltd.*		61,000		23,027
Pacific Radiance Ltd.		41,000		21,822
Pason Systems, Inc.		3,018		54,118
Petrofac Ltd.		6,392		85,852
Petroleum Geo-Services ASA		54,315		359,529
Precision Drilling Corp.		5,828		42,245
Prosafe SE		52,258		185,856
Saipem SpA*		7,023		93,334
SBM Offshore N.V.*		43,145		558,398
Schoeller-Bleckmann Oilfield Equipment AG		202		14,260
Seadrill Ltd.		10,483		137,222
Secure Energy Services, Inc.		4,100		57,747
ShawCor Ltd.		2,274		76,692
Solstad Offshore ASA		2,776		17,830
SPT Energy Group, Inc.		292,000		65,926
Subsea 7 S.A.		11,275		125,161
Technip S.A.		2,991		204,010
Tecnicas Reunidas S.A.		6,492		302,333
Tenaris S.A.		12,736		196,088
TGS Nopec Geophysical Co. ASA		2,456		62,382
Transocean Ltd.		4,800		90,336
Trican Well Service Ltd.		30,064		126,585
Trinidad Drilling Ltd.		39,948		167,213
				4,903,934
Food & Staples Retailing – 1.6%
Aeon Co., Ltd.		16,413		204,494
Ain Pharmaciez, Inc.		1,400		49,662
Alimentation Couche-Tard, Inc., Class B		12,197		465,022


	Shares		Value
Food & Staples Retailing – (continued)
Arcs Co., Ltd.		2,918	$	61,325
Axfood AB		352		5,539
Belc Co., Ltd.		2,600		75,934
Booker Group PLC		21,140		47,041
Carrefour S.A.*		16,211		559,308
Casino Guichard Perrachon S.A.		1,395		123,490
Cocokara fine, Inc.		2,800		85,401
Colruyt S.A.		509		24,063
Cosmos Pharmaceutical Corp.		100		13,429
CREATE SD HOLDINGS Co., Ltd.		2,300		100,134
Dairy Farm International Holdings Ltd.		4,500		42,480
Delhaize Group S.A.		2,161		174,566
Distribuidora Internacional de Alimentacion S.A.		23,314		187,469
Empire Co., Ltd., Class A		801		57,645
FamilyMart Co., Ltd.		700		30,183
George Weston Ltd.		1,938		159,456
Greggs PLC		4,992		91,214
Heiwado Co., Ltd.		5,900		141,892
ICA Gruppen AB		1,371		50,848
Inageya Co., Ltd.		6,098		68,690
Itochu-Shokuhin Co., Ltd.		300		10,567
J Sainsbury PLC		38,616		161,473
The Jean Coutu Group PJC, Inc., Class A		254		4,924
Jeronimo Martins SGPS S.A.		192		2,802
Kato Sangyo Co., Ltd.		2,900		61,698
Kesko Oyj, Class A		1,178		44,907
Kesko Oyj, Class B		802		32,901
Koninklijke Ahold N.V.		22,052		427,489
Kusuri No Aoki Co., Ltd.		800		59,029
Lawson, Inc.		2,300		165,672
Life Corp.		1,900		33,389
Loblaw Cos. Ltd.		6,851		346,891
Matsumotokiyoshi Holdings Co., Ltd.		500		18,258
Metcash Ltd.		16,694		17,447
METRO AG		5,238		189,906
Metro, Inc.		6,216		179,000
Mitsubishi Shokuhin Co., Ltd.		2,200		46,585
The North West Co., Inc.		5,501		112,450
Rallye S.A.		6,284		234,730

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)
Food & Staples Retailing – (continued)
Rami Levy Chain Stores Hashikma Marketing 2006 Ltd.		375	$	15,247
San-A Co., Ltd.		2,300		96,482
Seven & i Holdings Co., Ltd.		18,300		791,364
Shufersal Ltd.*		3,578		8,193
Sligro Food Group N.V.		1,953		75,271
Sonae SGPS S.A.		18,183		25,306
Sugi Holdings Co., Ltd.		200		9,760
Sundrug Co., Ltd.		200		10,044
Tesco PLC		217,047		737,139
Tsuruha Holdings, Inc.		1,600		116,587
United Super Markets Holdings, Inc.*		10,840		93,662
UNY Group Holdings Co., Ltd.		3,900		22,063
Valor Co., Ltd.		7,000		149,570
Welcia Holdings Co., Ltd.		900		39,333
Wesfarmers Ltd.		28,382		978,505
WM Morrison Supermarkets PLC		48,460		139,112
Woolworths Ltd.		32,139		747,307
Yaoko Co., Ltd.		1,800		64,001
				9,088,349
Food Products – 3.3%
a2 Milk Co., Ltd.*		42,362		16,771
AAK AB		442		27,948
Agrana Beteiligungs AG		349		31,677
Ajinomoto Co., Inc.		14,000		311,306
Ariake Japan Co., Ltd.		800		26,607
Aryzta AG*		2,970		200,663
Associated British Foods PLC		9,777		429,259
Austevoll Seafood ASA		11,712		68,076
Australian Agricultural Co., Ltd.*		12,274		15,683
Bakkafrost P/F		2,107		49,491
Barry Callebaut AG (Registered)*		38		46,035
Bumitama Agri Ltd.		52,000		38,670
C.P. Pokphand Co., Ltd.		317,384		47,089
Calbee, Inc.		3,200		130,492
China Fishery Group Ltd.*		201,600		29,071
Chocoladefabriken Lindt & Sprungli AG		17		93,265
Chocoladefabriken Lindt & Sprungli AG (Registered)		4		257,295


	Shares		Value
Food Products – (continued)
Cloetta AB, Class B*		21,532	$	66,269
Dairy Crest Group PLC		27,980		196,545
Danone S.A.		15,814		1,143,142
Del Monte Pacific Ltd.*		61,213		19,410
Dydo Drinco, Inc.		100		4,136
Ebro Foods S.A.		6,114		118,455
Emmi AG (Registered)*		432		143,055
Ezaki Glico Co., Ltd.		500		20,807
First Resources Ltd.		18,000		24,189
Fuji Oil Co., Ltd.		1,600		23,317
Fujicco Co., Ltd.		2,000		33,726
Fujiya Co., Ltd.*		6,000		9,777
Glanbia PLC		2,208		40,948
Golden Agri-Resources Ltd.		319,000		101,151
GrainCorp Ltd., Class A		45,775		357,801
Greencore Group PLC		51,558		281,035
Hokuto Corp.		600		10,780
House Foods Group, Inc.		2,400		48,975
Indofood Agri Resources Ltd.		77,000		42,437
Itoham Foods, Inc.		13,132		71,108
J-Oil Mills, Inc.		14,000		47,380
Kagome Co., Ltd.		500		7,826
Kameda Seika Co., Ltd.		200		8,147
Kerry Group PLC, Class A		4,701		345,193
Kewpie Corp.		1,000		24,300
Kikkoman Corp.		4,000		114,816
KWS Saat SE		116		34,972
Leroy Seafood Group ASA		1,715		56,897
Maple Leaf Foods, Inc.		300		5,734
Marine Harvest ASA		10,429		127,396
Marudai Food Co., Ltd.		16,000		57,625
Maruha Nichiro Corp.		4,400		61,071
Megmilk Snow Brand Co., Ltd.		9,614		115,445
MEIJI Holdings Co., Ltd.		1,300		149,043
Mitsui Sugar Co., Ltd.		12,000		43,319
Morinaga & Co., Ltd.		32,000		107,763
Morinaga Milk Industry Co., Ltd.		46,000		170,669
Nestle S.A. (Registered)		83,329		6,483,813
NH Foods Ltd.		4,000		87,440
Nichirei Corp.		7,000		37,261
Nippon Flour Mills Co., Ltd.		26,000		128,403
Nippon Suisan Kaisha Ltd.		55,100		167,598
The Nisshin Oillio Group Ltd.		7,000		25,737

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)
Food Products – (continued)
Nisshin Seifun Group, Inc.		7,090	$	83,182
Nissin Foods Holdings Co., Ltd.		700		33,576
Origin Enterprises PLC		5,998		53,970
Orkla ASA		21,735		170,465
Osem Investments Ltd.		1,461		31,150
Petra Foods Ltd.		5,000		14,647
Prima Meat Packers Ltd.		19,000		54,299
Raisio Oyj, Class V		10,844		48,119
Riken Vitamin Co., Ltd.		800		28,512
Sakata Seed Corp.		2,800		48,550
Salmar ASA		2,788		45,323
Saputo, Inc.		7,290		215,164
Schouw & Co.		3,233		165,534
Showa Sangyo Co., Ltd.		13,000		53,121
Suedzucker AG		17,813		269,265
SunOpta, Inc.*		3,508		36,115
Super Group Ltd.		12,000		13,499
Tate & Lyle PLC		9,708		88,990
Toyo Suisan Kaisha Ltd.		2,800		98,036
Unilever N.V. (CVA)		43,657		1,911,054
Unilever PLC		35,550		1,565,738
Vilmorin & Cie S.A.		38		3,170
Viscofan S.A.		2,899		184,351
Vitasoy International Holdings Ltd.		78,000		142,694
Wilmar International Ltd.		52,000		127,983
Yakult Honsha Co., Ltd.		2,700		169,892
Yamazaki Baking Co., Ltd.		1,000		17,857
				18,658,565
Gas Utilities – 0.5%
APA Group		37,153		281,322
Enagas S.A.		4,185		129,032
Gas Natural SDG S.A.		8,643		212,632
Hong Kong & China Gas Co., Ltd.		153,360		366,031
Osaka Gas Co., Ltd.		46,000		195,732
Rubis S.C.A.		2,604		176,913
Saibu Gas Co., Ltd.		33,000		77,488
Shizuoka Gas Co., Ltd.		14,700		95,936
Snam SpA		52,527		274,048
Superior Plus Corp.		31,196		357,225
Toho Gas Co., Ltd.		8,000		48,600
Tokyo Gas Co., Ltd.		57,000		329,845


	Shares		Value
Gas Utilities – (continued)
Valener, Inc.		8,473	$	118,500
				2,663,304
Health Care Equipment & Supplies – 0.7%
Ansell Ltd.		1,947		40,066
Asahi Intecc Co., Ltd.		1,400		86,454
BioMerieux		852		91,747
Biosensors International Group Ltd.*		11,000		6,851
Carl Zeiss Meditec AG		2,388		60,702
Cochlear Ltd.		785		51,781
Coloplast A/S, Class B		3,309		270,285
DiaSorin SpA		2,388		108,962
Draegerwerk AG & Co. KGaA		787		69,262
Draegerwerk AG & Co. KGaA (Preference)		178		20,614
Elekta AB, Class B		13,489		126,000
Essilor International S.A.		5,401		658,165
Fisher & Paykel Healthcare Corp. Ltd.		7,536		37,294
Fukuda Denshi Co., Ltd.		1,863		106,951
Getinge AB, Class B		4,302		104,686
GN Store Nord A/S		2,532		54,632
Hogy Medical Co., Ltd.		700		33,693
Mani, Inc.		800		53,681
Nagaileben Co., Ltd.		500		9,029
Nakanishi, Inc.		1,700		63,216
Nihon Kohden Corp.		1,200		31,537
Nikkiso Co., Ltd.		3,000		28,102
Nipro Corp.		800		7,674
Olympus Corp.*		5,600		203,092
Paramount Bed Holdings Co., Ltd.		2,900		78,637
Sartorius AG		480		79,443
Sartorius Stedim Biotech		198		50,398
Smith & Nephew PLC		25,653		440,346
Sonova Holding AG (Registered)		1,218		168,744
Sorin SpA*		34,803		109,976
Straumann Holding AG (Registered)		856		243,031
Sysmex Corp.		4,800		266,332
Terumo Corp.		9,000		232,389
William Demant Holding A/S*		324		26,611
				4,020,383

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)
Health Care Providers & Services – 0.8%
Al Noor Hospitals Group PLC		2,464	$	34,003
Alfresa Holdings Corp.		3,200		48,052
Amplifon SpA		3,837		29,968
As One Corp.		2,700		86,525
BML, Inc.		200		6,092
Catamaran Corp.*		6,237		370,166
Celesio AG		1,746		51,847
Ebos Group Ltd.		5,057		36,692
Extendicare, Inc.		15,230		99,081
Fagron		1,000		44,133
Fresenius Medical Care AG & Co. KGaA		6,335		534,034
Fresenius SE & Co. KGaA		10,671		638,883
Japara Healthcare Ltd.		25,050		54,533
Korian-Medica		3,015		102,739
Medipal Holdings Corp.		2,900		39,767
Message Co., Ltd.		700		21,614
Metlifecare Ltd.		2,748		10,168
Miraca Holdings, Inc.		1,200		60,266
Nichii Gakkan Co.		3,600		33,452
Orpea		2,465		162,277
Primary Health Care Ltd.		22,487		87,974
Raffles Medical Group Ltd.		7,109		21,629
Ramsay Health Care Ltd.		3,152		155,607
Religare Health Trust		96,700		77,751
Rhoen-Klinikum AG		3,646		100,974
Ryman Healthcare Ltd.		3,931		24,392
Ship Healthcare Holdings, Inc.		8,000		195,872
Sigma Pharmaceuticals Ltd.		214,361		147,097
Sonic Healthcare Ltd.		12,782		200,325
Summerset Group Holdings Ltd.		11,084		29,283
Suzuken Co., Ltd.		1,980		62,128
Synergy Health PLC*		5,498		187,146
Toho Holdings Co., Ltd.		13,600		237,179
Tokai Corp./Gifu		2,300		77,070
Town Health International Medical Group Ltd.		274,000		89,081
UDG Healthcare PLC		25,343		207,387
Vital KSK Holdings, Inc.		5,700		42,201
				4,407,388


	Shares		Value
Health Care Technology – 0.0%^†
M3, Inc.		2,800	$	53,019
Hotels, Restaurants & Leisure – 1.7%
Accor S.A.		3,737		205,145
Accordia Golf Co., Ltd.		7,100		72,382
Accordia Golf Trust*		146,800		89,772
Ainsworth Game Technology Ltd.		3,266		7,213
Amaya, Inc.*		3,490		81,340
Ardent Leisure Group		47,643		74,593
Aristocrat Leisure Ltd.		7,483		49,106
Atom Corp.		4,200		27,516
Autogrill SpA*		6,590		63,358
Betfair Group PLC		4,995		179,006
Betsson AB*		3,531		147,704
Bwin.Party Digital Entertainment PLC		171,768		220,806
Cafe de Coral Holdings Ltd.		6,000		22,526
Carnival PLC		4,366		200,545
Colowide Co., Ltd.		3,500		48,345
Compass Group PLC		44,896		798,260
Crown Resorts Ltd.		10,127		103,920
Domino’s Pizza Enterprises Ltd.		2,058		59,460
Domino’s Pizza Group PLC		8,780		106,525
Doutor Nichires Holdings Co., Ltd.		2,700		51,035
Echo Entertainment Group Ltd.		18,462		66,111
Enterprise Inns PLC*		99,688		179,239
Flight Centre Travel Group Ltd.		659		22,574
Fuji Kyuko Co., Ltd.		5,000		47,004
Fujita Kanko, Inc.		2,000		7,905
Galaxy Entertainment Group Ltd.		56,000		270,928
Genting Singapore PLC		138,000		106,791
Great Canadian Gaming Corp.*		4,004		78,179
Greene King PLC		12,190		155,577
GuocoLeisure Ltd.		13,000		9,029
HIS Co., Ltd.		800		26,807
The Hongkong & Shanghai Hotels Ltd.		26,000		38,172
Ichibanya Co., Ltd.		500		22,520
Imperial Hotel Ltd.		100		2,209
InterContinental Hotels Group PLC		5,774		248,804
J D Wetherspoon PLC		11,839		138,453
Kappa Create Holdings Co., Ltd.*		6,700		62,202
KFC Holdings Japan Ltd.		3,000		56,405

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)
Hotels, Restaurants & Leisure – (continued)
Kingston Financial Group Ltd.		216,000	$	59,914
Kisoji Co., Ltd.		1,100		18,228
Ladbrokes PLC		75,597		119,194
Macau Legend Development Ltd.*		60,000		22,758
Mandarin Oriental International Ltd.		30,000		48,750
Marston’s PLC		124,528		302,936
McDonald’s Holdings Co. Japan Ltd.		800		17,348
Melco Crown Entertainment Ltd.		14,100		97,958
Melco International Development Ltd.		21,000		35,654
Merlin Entertainments PLC(a)		28,101		188,456
MGM China Holdings Ltd.		35,600		67,515
Millennium & Copthorne Hotels PLC		4,198		37,321
Mitchells & Butlers PLC*		40,809		262,141
MOS Food Services, Inc.		2,100		43,204
NagaCorp Ltd.		110,000		79,330
Ohsho Food Service Corp.		1,504		53,351
OPAP S.A.		8,569		76,336
Oriental Land Co., Ltd.		5,600		379,417
OUE Ltd.		21,000		35,038
Paddy Power PLC		688		61,482
PGM Holdings K K		400		4,255
Plenus Co., Ltd.		1,000		19,621
Rank Group PLC		1,756		5,154
Regal Hotels International Holdings Ltd.		52,000		32,269
Resorttrust, Inc.		600		15,693
Restaurant Brands International, Inc.*		3,458		140,547
The Restaurant Group PLC		18,201		190,199
Rezidor Hotel Group AB		3,130		13,307
Round One Corp.		14,866		79,131
Royal Holdings Co., Ltd.		1,600		29,468
Saizeriya Co., Ltd.		1,300		26,528
Sands China Ltd.		59,200		242,493
Shangri-La Asia Ltd.		32,000		48,715
SJM Holdings Ltd.		64,672		82,351
SKYCITY Entertainment Group Ltd.		17,155		54,856
Sodexo S.A.		3,423		346,435


	Shares		Value
Hotels, Restaurants & Leisure – (continued)
SSP Group PLC*		17,401	$	79,768
St. Marc Holdings Co., Ltd.		1,400		47,088
Tabcorp Holdings Ltd.		32,341		124,229
Tatts Group Ltd.		37,968		120,987
Thomas Cook Group PLC*		37,027		81,881
Tokyo Dome Corp.		13,000		55,620
Tokyotokeiba Co., Ltd.		9,000		22,111
Toridoll.corp		1,600		22,555
Tsui Wah Holdings Ltd.		46,000		15,549
TUI AG		51,278		961,811
Unibet Group PLC (SDR)		2,774		162,281
WATAMI Co., Ltd.		1,400		13,793
Whitbread PLC		4,156		335,623
William Hill PLC		21,038		116,777
Wynn Macau Ltd.		42,800		87,133
Yoshinoya Holdings Co., Ltd.		4,900		55,932
Zensho Holdings Co., Ltd.		3,600		33,753
				9,821,710
Household Durables – 1.2%
Alpine Electronics, Inc.		12,600		257,538
Barratt Developments PLC		21,245		169,608
Bellway PLC		5,247		160,621
Berkeley Group Holdings PLC		3,209		124,223
Bovis Homes Group PLC		33,795		484,289
Casio Computer Co., Ltd.		4,500		91,564
Chofu Seisakusho Co., Ltd.		200		4,788
Clarion Co., Ltd.		13,000		36,283
Crest Nicholson Holdings PLC		39,477		272,149
De’ Longhi		2,341		52,963
Dorel Industries, Inc., Class B		6,978		204,515
Electrolux AB		5,402		161,924
Fiskars Oyj Abp		2,910		58,890
Forbo Holding AG (Registered)*		80		97,342
Fujitsu General Ltd.		4,000		57,658
Haseko Corp.		3,900		38,814
Husqvarna AB, Class A		8,933		66,380
Husqvarna AB, Class B		6,333		46,908
Iida Group Holdings Co., Ltd.		5,800		78,613
JM AB		3,656		108,800
Man Wah Holdings Ltd.		127,600		165,938
Nikon Corp.		9,800		139,380
Nobia AB		7,206		77,796

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)
Household Durables – (continued)
PanaHome Corp.		18,000	$	131,461
Panasonic Corp.		58,700		845,649
Persimmon PLC*		6,628		173,155
Pioneer Corp.*		15,600		30,113
Pressance Corp.		2,200		70,686
Redrow PLC		56,778		324,060
Rinnai Corp.		400		30,484
Sangetsu Co., Ltd.		7,156		110,805
SEB S.A.		1,406		130,325
Sekisui Chemical Co., Ltd.		9,000		120,707
Sekisui House Ltd.		15,700		244,874
Sharp Corp.*		46,000		99,941
Sony Corp.*		27,000		822,274
Starts Corp., Inc.		2,700		42,529
Sumitomo Forestry Co., Ltd.		500		5,824
Takamatsu Construction Group Co., Ltd.		2,600		60,856
Tamron Co., Ltd.		4,800		113,191
Taylor Wimpey PLC		108,529		277,192
Techtronic Industries Co., Ltd.		43,000		152,835
Token Corp.		2,710		137,006
TomTom N.V.*		5,274		46,924
				6,927,875
Household Products – 0.6%
Earth Chemical Co., Ltd.		400		14,707
Henkel AG & Co. KGaA		3,240		328,894
Henkel AG & Co. KGaA (Preference)		5,028		587,076
Lion Corp.		5,000		30,626
Pigeon Corp.		2,400		63,575
PZ Cussons PLC		18,809		103,479
Reckitt Benckiser Group PLC		16,924		1,515,223
Svenska Cellulosa AB S.C.A., Class A		3,160		80,113
Svenska Cellulosa AB S.C.A., Class B		14,020		354,935
Unicharm Corp.		9,800		246,986
				3,325,614


	Shares		Value
Independent Power and Renewable Electricity Producers – 0.1%
Algonquin Power & Utilities Corp.		6,486	$	52,638
Capital Power Corp.		4,489		92,096
Drax Group PLC		7,311		44,974
EDP Renovaveis S.A.		11,312		79,261
Electric Power Development Co., Ltd.		2,800		94,527
Enel Green Power SpA		27,902		54,371
Energy World Corp. Ltd.*		63,841		21,904
Innergex Renewable Energy, Inc.		13,594		125,923
Northland Power, Inc.		180		2,564
TransAlta Corp.		11,427		113,209
TransAlta Renewables, Inc.		4,100		42,210
				723,677
Industrial Conglomerates – 1.1%
CIR-Compagnie Industriali Riunite SpA*		40,226		48,185
Daetwyler Holding AG		334		47,378
DCC PLC		2,320		148,279
Discount Investment Corp. Ltd. (Registered)		4,442		7,938
Gallant Venture Ltd.*		142,000		26,265
Hopewell Holdings Ltd.		3,500		13,479
Hutchison Whampoa Ltd.		59,000		869,265
Jardine Matheson Holdings Ltd.		6,300		390,222
Jardine Strategic Holdings Ltd.		5,400		185,922
Katakura Industries Co., Ltd.		1,200		12,946
Keihan Electric Railway Co., Ltd.		10,000		57,993
Keppel Corp. Ltd.		36,100		237,660
Koninklijke Philips N.V.		24,105		692,963
Nisshinbo Holdings, Inc.		2,000		20,841
NWS Holdings Ltd.		31,394		53,463
Rheinmetall AG		7,929		408,836
Seibu Holdings, Inc.		2,500		72,595
Sembcorp Industries Ltd.		20,600		70,297
Shun Tak Holdings Ltd.		322,000		187,355
Siemens AG (Registered)		20,340		2,222,447
Smiths Group PLC		9,407		165,524
TOKAI Holdings Corp.		2,995		12,714
Toshiba Corp.		115,000		462,422
				6,414,989

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)
Insurance – 4.8%
Admiral Group PLC		6,397	$	153,161
Aegon N.V.		50,068		396,373
Ageas		5,408		203,129
AIA Group Ltd.		317,600		2,122,482
Allianz SE (Registered)		12,141		2,076,062
Amlin PLC		4,931		34,767
AMP Ltd.		85,554		434,576
Assicurazioni Generali SpA		32,493		636,447
Aviva PLC		99,962		809,559
AXA S.A.		48,288		1,223,678
Baloise Holding AG (Registered)*		1,531		199,852
Beazley PLC		108,270		469,203
Brit PLC(a)		25,200		108,085
Catlin Group Ltd.^		7,091		77,206
CNP Assurances		8,145		146,349
The Dai-ichi Life Insurance Co., Ltd.		27,000		445,375
Delta Lloyd N.V.		45,602		861,790
Direct Line Insurance Group PLC		33,689		165,203
esure Group PLC		9,090		30,480
Euler Hermes Group		2,835		309,734
Fairfax Financial Holdings Ltd.		598		325,351
FBD Holdings PLC		6,869		74,084
Gjensidige Forsikring ASA		5,777		100,506
Great-West Lifeco, Inc.		7,022		214,559
Grupo Catalana Occidente S.A.		6,567		211,267
Hannover Rueck SE		1,318		134,456
Harel Insurance Investments & Financial Services Ltd.		4,300		20,088
Helvetia Holding AG (Registered)		1,383		786,785
Hiscox Ltd.		11,458		145,091
Industrial Alliance Insurance & Financial Services, Inc.		2,726		98,822
Insurance Australia Group Ltd.		64,783		296,877
Intact Financial Corp.		4,231		324,612
Jardine Lloyd Thompson Group PLC		258		4,215
Just Retirement Group PLC		45,817		122,512
Lancashire Holdings Ltd.		37,725		371,033
Legal & General Group PLC		153,812		614,564
Manulife Financial Corp.		49,637		899,920
Mapfre S.A.		42,119		156,787
Mediolanum SpA		2,092		17,640


	Shares		Value
Insurance – (continued)
Menorah Mivtachim Holdings Ltd.		4,176	$	41,460
MS&AD Insurance Group Holdings, Inc.		12,500		359,583
Muenchener Rueckversicherungs- Gesellschaft AG (Registered)		4,726		926,221
nib holdings Ltd.		22,426		64,563
Old Mutual PLC		115,745		417,819
Phoenix Group Holdings		10,446		135,406
The Phoenix Holdings Ltd.		7,846		23,332
Power Corp of Canada		10,486		286,985
Power Financial Corp.		5,402		166,442
Prudential PLC		67,006		1,677,405
QBE Insurance Group Ltd.		30,619		330,865
RSA Insurance Group PLC		31,007		203,751
Sampo Oyj, Class A		12,468		605,783
SCOR SE		4,726		170,151
Societa Cattolica di Assicurazioni SCRL		30,510		260,512
Sompo Japan Nipponkoa Holdings, Inc.		9,700		318,551
Sony Financial Holdings, Inc.		3,000		54,149
St. James’s Place PLC		15,737		215,841
Standard Life PLC		59,571		428,342
Steadfast Group Ltd.		67,315		80,173
Storebrand ASA*		4,565		16,151
Sun Life Financial, Inc.		16,247		517,892
Suncorp Group Ltd.		36,406		376,600
Swiss Life Holding AG (Registered)*		768		182,553
Swiss Re AG*		9,497		842,353
T&D Holdings, Inc.		13,600		197,119
Talanx AG		2,161		68,916
Tokio Marine Holdings, Inc.		19,700		806,800
Topdanmark A/S*		8,057		241,468
Tryg A/S		70		7,594
Unipol Gruppo Finanziario SpA		5,898		31,036
Unipol Gruppo Finanziario SpA (Preference)		4,637		24,400
UnipolSai SpA		41,310		116,003
UnipolSai SpA (Retirement Savings Plan)		32		8,563
UnipolSai SpA (Retirement Savings Plan), Class B		1,364		3,842

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)
Insurance – (continued)
UNIQA Insurance Group AG		873	$	8,599
Vienna Insurance Group AG Wiener Versicherung Gruppe		580		23,098
Zurich Insurance Group AG*		4,005		1,237,963
				27,300,964
Internet & Catalog Retail – 0.2%
AO World PLC*		20,713		59,364
ASKUL Corp.		1,400		32,780
ASOS PLC*		1,589		91,791
Belluna Co., Ltd.		9,900		48,065
Home Retail Group PLC		79,634		204,248
N Brown Group PLC		17,231		90,746
Ocado Group PLC*		41,540		227,258
Rakuten, Inc.		18,500		324,102
Start Today Co., Ltd.		600		14,866
Trade Me Group Ltd.		106		308
Yoox SpA*		4,588		144,979
				1,238,507
Internet Software & Services – 0.3%
carsales.com Ltd.		3,812		28,383
COOKPAD, Inc.		1,800		77,012
Dena Co., Ltd.		4,000		80,020
F@N Communications, Inc.		2,200		18,476
GMO internet, Inc.		7,600		95,961
Gree, Inc.		2,000		12,902
Gurunavi, Inc.		1,800		33,693
Infomart Corp.		4,900		48,808
Internet Initiative Japan, Inc.		4,400		74,528
Just Eat PLC*		10,533		74,264
Kakaku.com, Inc.		4,900		76,118
Mixi, Inc.		1,200		47,380
Moneysupermarket.com Group PLC		22,607		97,415
Net Entertainment NE AB, Class B*		1,963		73,815
Opera Software ASA		2,978		29,007
Perion Network Ltd.*		548		1,918
SUNeVision Holdings Ltd.		337,000		117,389
Telecity Group PLC		18,233		248,954
United Internet AG (Registered)		3,151		141,852


	Shares		Value
Internet Software & Services – (continued)
Yahoo Japan Corp.		31,900	$	130,884
				1,508,779
IT Services – 0.8%
Altran Technologies S.A.		7,420		80,759
Amadeus IT Holding S.A., Class A		10,319		472,116
Atea ASA		12,835		143,075
Atos SE		4,025		315,039
Bechtle AG		1,336		98,521
Cap Gemini S.A.		4,874		434,194
CGI Group, Inc., Class A*		5,762		241,564
Computacenter PLC		13,191		141,088
Computershare Ltd.		13,593		131,981
DH Corp.		2,110		73,652
Digital Garage, Inc.		1,900		27,356
DTS Corp.		3,900		79,519
Econocom Group S.A./N.V.		16,498		144,253
Fujitsu Ltd.		54,000		357,924
IRESS Ltd.		6,581		54,036
IT Holdings Corp.		2,300		45,762
Itochu Techno-Solutions Corp.		1,200		27,425
NEC Networks & System Integration Corp.		4,200		90,619
NET One Systems Co., Ltd.		8,000		57,491
Nihon Unisys Ltd.		13,500		128,829
Nomura Research Institute Ltd.		1,500		59,476
NS Solutions Corp.		1,500		50,514
NTT Data Corp.		4,500		202,306
Obic Co., Ltd.		900		37,754
Optimal Payments PLC*		12,180		55,591
Otsuka Corp.		900		41,589
Quindell PLC*		70,758		138,912
SCSK Corp.		400		11,732
Sopra Steria Group		2,690		237,465
Tieto Oyj		219		5,261
TKC Corp.		1,800		43,154
Transcosmos, Inc.		6,800		164,673
Wirecard AG		8,785		387,953
Worldline S.A.(a) *		7,863		176,042
				4,757,625
Leisure Products – 0.2%
Amer Sports Oyj		1,390		34,858

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)
Leisure Products – (continued)
Bandai Namco Holdings, Inc.		6,100	$	125,497
BRP, Inc.*		6,733		148,807
Fields Corp.		2,200		34,929
Heiwa Corp.		1,900		39,724
Mizuno Corp.		4,000		20,757
Sankyo Co., Ltd.		900		34,106
Sega Sammy Holdings, Inc.		5,800		81,279
Shimano, Inc.		1,900		271,655
Tomy Co., Ltd.		3,700		22,540
Universal Entertainment Corp.		3,200		53,454
Yamaha Corp.		1,900		34,596
				902,202
Life Sciences Tools & Services – 0.2%
Eurofins Scientific SE		711		200,532
Gerresheimer AG		2,656		150,863
Lonza Group AG (Registered)*		1,942		275,889
MorphoSys AG*		2,162		156,090
QIAGEN N.V.*		4,700		111,907
				895,281
Machinery – 3.2%
Aalberts Industries N.V.		5,765		178,780
Aida Engineering Ltd.		9,500		108,599
Alfa Laval AB		9,541		178,015
Amada Holdings Co., Ltd.		8,000		81,156
ANDRITZ AG		2,652		155,123
Asahi Diamond Industrial Co., Ltd.		2,500		30,856
Atlas Copco AB, Class A		18,890		589,298
Atlas Copco AB, Class B		10,800		300,577
ATS Automation Tooling Systems, Inc.*		5,484		60,262
Bodycote PLC		14,446		152,735
Bradken Ltd.		41,466		74,897
Bucher Industries AG (Registered)		542		136,411
Burckhardt Compression Holding AG		141		61,553
Cargotec Oyj, Class B		613		24,790
CKD Corp.		11,400		104,883
COSCO Corp. Singapore Ltd.		202,000		92,265
Daifuku Co., Ltd.		4,800		64,457


	Shares		Value
Machinery – (continued)
Danieli & C Officine Meccaniche SpA		3,394	$	82,756
Danieli & C Officine Meccaniche SpA (Retirement Savings Plan)		10,005		185,880
DMG Mori Seiki AG		6,230		219,169
DMG Mori Seiki Co., Ltd.		2,000		32,941
Duerr AG		5,312		546,665
Ebara Corp.		6,000		26,874
FANUC Corp.		5,200		1,152,586
Fenner PLC		56,225		182,312
Fincantieri SpA*		88,645		80,707
Fuji Machine Manufacturing Co., Ltd.		8,800		108,759
Fujitec Co., Ltd.		3,000		32,916
Furukawa Co., Ltd.		18,000		31,436
GEA Group AG		4,097		198,212
Georg Fischer AG (Registered)		870		616,122
Glory Ltd.		200		5,565
Harmonic Drive Systems, Inc.		1,500		31,838
Hexagon Composites ASA		11,116		35,846
Hino Motors Ltd.		5,000		65,597
Hitachi Construction Machinery Co., Ltd.		5,100		90,902
Hitachi Koki Co., Ltd.		600		4,959
Hitachi Zosen Corp.		39,300		217,731
Hoshizaki Electric Co., Ltd.		1,300		76,911
IHI Corp.		45,000		207,571
IMI PLC		2,363		45,464
Industria Macchine Automatiche SpA		1,057		53,891
Interpump Group SpA		5,865		98,712
Iseki & Co., Ltd.		13,000		27,049
The Japan Steel Works Ltd.		3,000		13,863
JTEKT Corp.		4,600		78,800
Kawasaki Heavy Industries Ltd.		45,000		232,389
KION Group AG		3,581		160,467
Kitz Corp.		17,000		86,797
Komatsu Ltd.		24,100		487,558
Komori Corp.		13,800		172,399
Kone Oyj, Class B		8,192		353,137
Konecranes Oyj		2,579		83,923
Krones AG		627		69,387
Kubota Corp.		28,087		440,422

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)
Machinery – (continued)
KUKA AG		2,565	$	183,317
Kurita Water Industries Ltd.		3,400		88,644
Kyokuto Kaihatsu Kogyo Co., Ltd.		8,200		91,340
Makino Milling Machine Co., Ltd.		20,000		183,839
Makita Corp.		3,300		166,282
MAN SE		1,307		141,784
MAN SE (Preference)		183		19,692
Max Co., Ltd.		1,000		11,298
Meidensha Corp.		32,000		106,426
Melrose Industries PLC		7,409		30,229
Metka S.A.		8,753		81,408
Metso Oyj		3,333		94,976
Minebea Co., Ltd.		6,000		92,705
Mitsubishi Heavy Industries Ltd.		81,119		452,604
Mitsui Engineering & Shipbuilding Co., Ltd.		7,000		12,635
Miura Co., Ltd.		3,300		37,283
Morgan Advanced Materials PLC		45,422		234,605
Nabtesco Corp.		2,300		63,521
Nachi-Fujikoshi Corp.		9,000		52,946
NGK Insulators Ltd.		8,000		180,764
Nippon Sharyo Ltd.		5,000		14,456
Nitta Corp.		5,600		154,425
NKT Holding A/S		4,778		303,468
NSK Ltd.		10,000		157,600
NTN Corp.		9,000		49,336
Obara Group, Inc.		1,400		82,945
OC Oerlikon Corp. AG (Registered)*		10,743		141,038
Oiles Corp.		1,020		19,510
OKUMA Corp.		12,000		130,960
OSG Corp.		1,500		31,223
Palfinger AG		794		23,773
Rational AG		283		99,749
Rotork PLC		1,036		37,589
Ryobi Ltd.		37,000		121,818
Sandvik AB		25,621		322,167
Schindler Holding AG		1,352		229,735
Schindler Holding AG (Registered)		909		151,451
Sembcorp Marine Ltd.		29,000		65,026
Semperit AG Holding		2,683		122,798
SFS Group AG*		2,824		215,515


	Shares		Value
Machinery – (continued)
Shima Seiki Manufacturing Ltd.		900	$	15,613
Shinmaywa Industries Ltd.		11,000		114,624
SKF AB, Class A		1,368		33,568
SKF AB, Class B		8,497		207,583
SMC Corp.		1,400		423,264
Spirax-Sarco Engineering PLC		2,133		110,858
Star Micronics Co., Ltd.		5,200		85,124
Sulzer AG (Registered)		1,807		202,899
Sumitomo Heavy Industries Ltd.		8,000		50,138
Tadano Ltd.		1,000		14,532
Takeuchi Manufacturing Co., Ltd.		1,700		82,535
Takuma Co., Ltd.		13,181		101,774
THK Co., Ltd.		2,500		63,508
Toshiba Machine Co., Ltd.		18,245		81,414
Trelleborg AB, Class B		5,977		116,958
Tsubakimoto Chain Co.		9,000		73,928
Tsukishima Kikai Co., Ltd.		3,000		30,108
Union Tool Co.		500		15,146
Vallourec S.A.		22,325		525,342
Vard Holdings Ltd.*		108,000		52,184
Vesuvius PLC		61,717		431,444
Volvo AB, Class A		11,679		160,702
Volvo AB, Class B		37,950		521,734
Wartsila Oyj Abp		4,727		217,170
The Weir Group PLC		6,166		178,141
Yangzijiang Shipbuilding Holdings Ltd.		19,000		21,015
Zardoya Otis S.A.		6,623		85,420
				17,850,776
Marine – 0.3%
AP Moeller – Maersk A/S, Class A		92		177,369
AP Moeller – Maersk A/S, Class B		182		360,994
D/S Norden A/S*		4,883		98,100
Iino Kaiun Kaisha Ltd.		4,300		22,709
Kawasaki Kisen Kaisha Ltd.		12,000		31,085
Kuehne + Nagel International AG (Registered)		1,218		182,784
Mitsui OSK Lines Ltd.		37,000		130,785
MMA Offshore Ltd.		111,431		61,524
Neptune Orient Lines Ltd.*		11,000		9,426
Nippon Yusen KK		48,000		151,617

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)
Marine – (continued)
NS United Kaiun Kaisha Ltd.		16,000	$	38,640
Orient Overseas International Ltd.		1,000		6,154
Pacific Basin Shipping Ltd.		123,000		45,702
SITC International Holdings Co., Ltd.		283,000		209,936
Stolt-Nielsen Ltd.		1,829		34,102
Wilh Wilhelmsen Holding ASA, Class A		3,116		75,052
Wilh Wilhelmsen Holding ASA, Class B		3,039		71,786
				1,707,765
Media – 2.2%
Adways, Inc.		700		5,908
Aimia, Inc.		3,183		35,213
Altice S.A.*		2,058		217,649
Amalgamated Holdings Ltd.		8,073		79,595
APN News & Media Ltd.*		168,362		124,828
Asatsu-DK, Inc.		4,100		113,061
Asian Pay Television Trust		186,900		126,994
Atresmedia Corp. de Medios de Comunicacion S.A.		3,386		54,864
Avex Group Holdings, Inc.		7,273		112,495
Axel Springer SE		507		28,375
Cineplex, Inc.		714		28,472
Cineworld Group PLC		18,614		139,764
Cogeco Cable, Inc.		3,318		189,314
Cogeco, Inc.		1,210		54,064
Corus Entertainment, Inc., Class B		15,618		239,186
CTS Eventim AG & Co. KGaA		4,192		143,152
CyberAgent, Inc.		1,100		52,946
Daiichikosho Co., Ltd.		300		9,664
Daily Mail & General Trust PLC, Class A		8,809		121,564
Dentsu, Inc.		6,600		307,746
Entertainment One Ltd.		14,555		70,457
Euromoney Institutional Investor PLC		3,489		61,660
Eutelsat Communications S.A.		3,843		133,839
Fairfax Media Ltd.		159,284		131,289
Fuji Media Holdings, Inc.		1,200		16,816
GFK SE		861		32,996


	Shares		Value
Media – (continued)
Hakuhodo DY Holdings, Inc.		1,900	$	20,402
Havas S.A.		14,494		120,835
IMAX Corp.*		2,048		76,513
Informa PLC		15,617		133,677
ITV PLC		94,725		369,162
JCDecaux S.A.		530		20,958
Kabel Deutschland Holding AG*		276		37,113
Kinepolis Group N.V.		1,030		39,876
Lagardere S.C.A.		24,855		797,939
Mediaset Espana Comunicacion S.A.*		9,296		126,198
Mediaset SpA*		11,276		58,299
Metropole Television S.A.		2,968		61,860
Modern Times Group MTG AB, Class B		2,186		72,646
Nippon Television Holdings, Inc.		1,500		25,896
NOS SGPS S.A.		7,692		56,025
Numericable-SFR SAS*		2,038		113,054
Pearson PLC		21,240		430,856
ProSiebenSat.1 Media AG (Registered)		5,241		269,503
Publicis Groupe S.A.		4,434		371,943
Quebecor, Inc., Class B		196		5,369
REA Group Ltd.		912		33,974
Reed Elsevier N.V.		20,277		489,305
Reed Elsevier PLC		32,424		539,134
Rightmove PLC		3,666		178,307
RTL Group S.A.		774		72,940
Sanoma Oyj		23,042		121,198
Schibsted ASA		2,560		159,433
SES S.A. (FDR)		8,641		302,584
Seven West Media Ltd.		196,941		196,502
Seven West Media Ltd.* ^		149,019		146,923
Shaw Communications, Inc., Class B		11,025		251,038
Shochiku Co., Ltd.		3,000		25,746
Singapore Press Holdings Ltd.		47,000		148,677
Sky Network Television Ltd.		7,095		33,977
SKY Perfect JSAT Holdings, Inc.		6,800		42,617
Sky PLC		29,385		486,345
Societe Television Francaise 1		12,527		219,190
Southern Cross Media Group Ltd.		150,074		126,657
Tamedia AG (Registered)		346		60,196
Technicolor S.A. (Registered)*		60,933		413,290

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)
Media – (continued)
Telenet Group Holding N.V.*		2,131	$	127,848
Television Broadcasts Ltd.		2,700		17,608
Ten Network Holdings Ltd.*		52,210		8,442
Thomson Reuters Corp.		10,082		412,603
Toei Co., Ltd.		13,000		96,139
Toho Co., Ltd.		4,100		102,132
Tokyo Broadcasting System Holdings, Inc.		3,400		44,919
TV Asahi Holdings Corp.		3,100		57,405
UBM PLC		31,447		272,801
Village Roadshow Ltd.		17,182		76,299
Wolters Kluwer N.V.		7,515		243,533
Wowow, Inc.		2,352		78,223
WPP PLC		33,303		780,982
				12,207,002
Metals & Mining – 3.6%
Acacia Mining PLC		18,407		81,721
Acerinox S.A.		7,320		107,124
Agnico Eagle Mines Ltd.		6,681		201,437
Aichi Steel Corp.		18,000		86,789
Alamos Gold, Inc.		12,989		89,435
Alumina Ltd.		89,081		108,556
AMAG Austria Metall AG(a)		2,064		74,010
Anglo American PLC		32,001		543,412
Antofagasta PLC		10,443		125,417
APERAM S.A.*		4,512		172,508
ArcelorMittal		27,122		289,236
Arrium Ltd.		582,530		80,407
Asahi Holdings, Inc.		3,800		71,669
AuRico Gold, Inc.		26,743		92,952
Aurubis AG		8,416		534,995
B2Gold Corp.*		49,355		77,012
Barrick Gold Corp.		34,425		445,642
BHP Billiton Ltd.		80,061		2,018,845
BHP Billiton PLC		54,003		1,295,460
BlueScope Steel Ltd.		19,530		53,915
Boliden AB		8,561		186,489
Capstone Mining Corp.*		56,276		78,055
Centamin PLC		256,442		250,245
Centerra Gold, Inc.		17,325		89,253


	Shares		Value
Metals & Mining – (continued)
China Gold International Resources Corp. Ltd.*		44,670	$	74,496
Daido Steel Co., Ltd.		5,000		23,941
Detour Gold Corp.*		14,519		152,832
Dominion Diamond Corp.		9,040		177,479
Dowa Holdings Co., Ltd.		4,000		36,133
Eldorado Gold Corp.		15,211		75,474
Eramet*		186		15,290
Evraz PLC		15,815		46,104
Ferrexpo PLC		19,871		23,819
First Majestic Silver Corp.*		7,159		34,753
First Quantum Minerals Ltd.		18,271		278,760
Fortescue Metals Group Ltd.		40,097		68,629
Franco-Nevada Corp.		4,803		248,388
Fresnillo PLC		3,538		39,119
Glencore PLC*		289,413		1,379,854
Goldcorp, Inc.		18,917		354,679
G-Resources Group Ltd.*		3,194,398		105,090
Hitachi Metals Ltd.		3,040		47,783
HudBay Minerals, Inc.		15,733		154,959
IAMGOLD Corp.*		38,667		86,193
Iluka Resources Ltd.		15,021		96,678
Imperial Metals Corp.*		3,680		39,770
Independence Group NL		56,468		262,781
JFE Holdings, Inc.		13,500		305,716
KAZ Minerals PLC*		18,115		72,686
Kinross Gold Corp.*		40,324		97,543
Kobe Steel Ltd.		84,000		153,021
Kyoei Steel Ltd.		1,500		24,442
Labrador Iron Ore Royalty Corp.		16,465		195,745
Lonmin PLC*		50,183		111,128
Lucara Diamond Corp.		61,699		103,405
Lundin Mining Corp.*		7,758		38,430
Maruichi Steel Tube Ltd.		1,000		25,445
Mitsubishi Materials Corp.		39,000		141,439
Mitsui Mining & Smelting Co., Ltd.		30,000		71,697
Mytilineos Holdings S.A.*		14,650		100,959
Nakayama Steel Works Ltd.*		34,000		26,707
Nevsun Resources Ltd.		51,889		203,915
New Gold, Inc.*		46,650		155,981
Newcrest Mining Ltd.*		16,020		182,587

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)
Metals & Mining – (continued)
Nippon Light Metal Holdings Co., Ltd.		105,600	$	164,131
Nippon Steel & Sumitomo Metal Corp.		181,205		473,946
Nisshin Steel Co., Ltd.		18,200		244,248
Norsk Hydro ASA		36,731		173,480
Northern Star Resources Ltd.		129,871		226,383
NOVAGOLD Resources, Inc.*		18,000		68,656
NV Bekaert S.A.		8,988		261,909
OceanaGold Corp.*		1,000		1,899
Osaka Steel Co., Ltd.		1,700		31,494
OSAKA Titanium Technologies Co., Ltd.		1,000		21,618
Outokumpu Oyj*		8,221		49,837
OZ Minerals Ltd.		32,294		119,463
Pacific Metals Co., Ltd.*		22,000		67,285
Pan American Silver Corp.		9,734		92,820
PanAust Ltd.		107,115		147,430
Petra Diamonds Ltd.*		16,906		41,049
Polyus Gold International Ltd.		13,384		38,616
Pretium Resources, Inc.*		8,692		49,874
Primero Mining Corp.*		7,334		26,944
Randgold Resources Ltd.		2,621		199,941
Regis Resources Ltd.*		62,707		62,072
Rio Tinto Ltd.		11,722		528,393
Rio Tinto PLC		32,542		1,442,757
Salzgitter AG		2,198		75,490
Sandfire Resources NL		20,638		80,089
Sanyo Special Steel Co., Ltd.		17,000		82,677
SEMAFO, Inc.*		17,791		54,493
Sherritt International Corp.		13,810		28,504
Silver Wheaton Corp.		8,311		163,304
Sims Metal Management Ltd.		10,737		91,378
Sirius Resources NL*		24,327		55,645
SSAB AB, Class A*		14,585		88,205
SSAB AB, Class B*		11,270		58,561
Sumitomo Metal Mining Co., Ltd.		15,000		221,547
Tahoe Resources, Inc.		754		10,614
Teck Resources Ltd., Class B		19,153		289,212
ThyssenKrupp AG		12,258		327,734
Toho Titanium Co., Ltd.*		5,700		48,679
Toho Zinc Co., Ltd.		37,000		143,152


	Shares		Value
Metals & Mining – (continued)
Tokyo Steel Manufacturing Co., Ltd.		23,300	$	162,382
Topy Industries Ltd.		34,000		81,825
Torex Gold Resources, Inc.*		52,463		48,511
Toyo Kohan Co., Ltd.		12,000		57,358
Turquoise Hill Resources Ltd.*		16,776		70,082
UACJ Corp.		4,000		11,665
Vedanta Resources PLC		1,197		11,561
voestalpine AG		3,527		147,891
Western Areas Ltd.		7,243		21,081
Yamana Gold, Inc.		29,196		111,120
Yamato Kogyo Co., Ltd.		200		4,731
Yodogawa Steel Works Ltd.		3,000		12,183
				20,082,353
Multiline Retail – 0.5%
Canadian Tire Corp. Ltd., Class A		1,847		194,863
Debenhams PLC		253,898		350,184
Dollarama, Inc.		4,302		246,062
Don Quijote Holdings Co., Ltd.		1,000		76,210
Fuji Co., Ltd.		800		14,346
H2O Retailing Corp.		1,815		32,760
Harvey Norman Holdings Ltd.		5,640		19,574
Hudson’s Bay Co.		4,000		87,084
Isetan Mitsukoshi Holdings Ltd.		10,800		175,442
Izumi Co., Ltd.		700		27,785
J Front Retailing Co., Ltd.		7,600		126,635
Kintetsu Department Store Co., Ltd.*		18,000		49,336
Lifestyle International Holdings Ltd.		4,000		7,483
Marks & Spencer Group PLC		38,520		327,648
Marui Group Co., Ltd.		5,500		59,839
Matsuya Co., Ltd.		1,500		22,687
Myer Holdings Ltd.		151,654		165,071
Next PLC		3,646		411,820
Parco Co., Ltd.		1,700		16,109
Poundland Group PLC		23,582		113,502
Ryohin Keikaku Co., Ltd.		500		79,761
Sanyo Electric Railway Co., Ltd.		9,000		35,272
Sears Canada, Inc.*		5,515		41,798
Seria Co., Ltd.		1,200		38,406
Stockmann Oyj Abp, Class B*		7,775		61,988
Takashimaya Co., Ltd.		11,000		102,950

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)
Multiline Retail – (continued)
The Warehouse Group Ltd.		5,317	$	11,173
				2,895,788
Multi-Utilities – 0.9%
A2A SpA		25,745		29,772
ACEA SpA		3,890		52,438
AGL Energy Ltd.		14,941		179,010
Atco Ltd., Class I		1,916		72,337
Canadian Utilities Ltd., Class A		4,756		153,920
Centrica PLC		126,470		496,377
DUET Group		14,729		29,392
E.ON SE		51,169		800,430
GDF Suez		38,738		790,240
Hera SpA		8,603		22,712
Iren SpA		112,016		164,933
Just Energy Group, Inc.		10,900		58,313
National Grid PLC		96,098		1,298,095
REN – Redes Energeticas Nacionais SGPS S.A.*		50,520		157,942
RWE AG		13,501		337,215
RWE AG (Non-Voting) (Preference)		1,032		19,509
Suez Environnement Co.		6,405		130,624
Telecom Plus PLC		3,504		41,301
Veolia Environnement S.A.*		9,813		208,044
				5,042,604
Oil, Gas & Consumable Fuels – 5.7%
Advantage Oil & Gas Ltd.*		21,122		130,263
Afren PLC*		257,677		13,068
Africa Oil Corp.*		39,060		84,166
AltaGas Ltd.		3,921		132,723
ARC Resources Ltd.		9,007		183,598
Athabasca Oil Corp.*		28,270		51,580
Avance Gas Holding Ltd.(a)		2,772		43,775
AWE Ltd.*		19,364		21,917
Bankers Petroleum Ltd.*		72,614		215,219
Baytex Energy Corp.		4,111		79,997
Beach Energy Ltd.		357,177		312,713
Bellatrix Exploration Ltd.*		57,244		179,116
BG Group PLC		82,028		1,490,618
Birchcliff Energy Ltd.*		25,993		187,128


	Shares		Value
Oil, Gas & Consumable Fuels – (continued)
Bonavista Energy Corp.		6,700	$	45,967
Bonterra Energy Corp.		1,564		49,803
BP PLC		484,664		3,501,340
Brightoil Petroleum Holdings Ltd.*		160,147		51,239
Cairn Energy PLC*		80,335		220,243
Caltex Australia Ltd.		2,755		76,990
Cameco Corp.		9,675		169,497
Canadian Natural Resources Ltd.		28,150		931,710
Canadian Oil Sands Ltd.		12,876		139,364
Cardinal Energy Ltd.		6,900		91,259
Cenovus Energy, Inc.		21,666		406,579
Cosmo Oil Co., Ltd.*		2,000		2,975
Crescent Point Energy Corp.		11,095		288,630
Crew Energy, Inc.*		7,783		34,377
Delek Group Ltd.		19		5,296
Det Norske Oljeselskap ASA*		1,072		7,817
DNO ASA*		5,536		10,395
Dragon Oil PLC		12,456		118,775
Enbridge Income Fund Holdings, Inc.		6,169		197,968
Enbridge, Inc.		22,219		1,156,764
Encana Corp.		19,724		278,945
Energy Resources of Australia Ltd.*		1,430		1,511
Enerplus Corp.		6,241		78,628
Eni SpA		70,314		1,353,618
EnQuest PLC*		120,759		97,428
ERG SpA		11,889		170,924
Exmar N.V.		2,989		31,527
Freehold Royalties Ltd.		6,485		95,408
Galp Energia SGPS S.A.		9,699		132,484
Gaztransport Et Technigaz S.A.		3,631		216,863
Genel Energy PLC*		1,199		11,571
Gibson Energy, Inc.		1,283		29,468
Gulf Keystone Petroleum Ltd.*		70,415		43,284
Hellenic Petroleum S.A.*		2,655		13,209
Hoegh LNG Holdings Ltd.		387		5,213
Husky Energy, Inc.		10,989		244,775
Idemitsu Kosan Co., Ltd.		4,100		79,622
Imperial Oil Ltd.		7,808		342,811
Inpex Corp.		23,500		296,524
Inter Pipeline Ltd.		6,137		160,107
Itochu Enex Co., Ltd.		8,300		75,114
James Fisher & Sons PLC		4,096		72,765

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)
Oil, Gas & Consumable Fuels – (continued)
Japan Petroleum Exploration Co., Ltd.		200	$	7,713
JX Holdings, Inc.		65,300		285,220
Kelt Exploration Ltd.*		5,800		44,580
Keyera Corp.		3,870		135,694
Koninklijke Vopak N.V.		2,062		108,227
KrisEnergy Ltd.*		59,000		23,608
Legacy Oil + Gas, Inc.*		65,500		156,281
Lightstream Resources Ltd.		45,513		50,727
Liquefied Natural Gas Ltd.*		33,534		120,612
Lundin Petroleum AB*		2,324		37,572
MEG Energy Corp.*		3,480		66,856
Motor Oil Hellas Corinth Refineries S.A.		13,939		121,831
Naphtha Israel Petroleum Corp. Ltd.*		5,509		31,268
Neste Oil Oyj		3,273		88,975
New Hope Corp. Ltd.		2,558		4,419
NewOcean Energy Holdings Ltd.		274,000		152,710
Nippon Gas Co., Ltd.		2,000		50,004
Nostrum Oil & Gas PLC*		18,156		171,593
NuVista Energy Ltd.*		8,513		62,833
OMV AG		646		21,535
Ophir Energy PLC*		44,047		96,119
Origin Energy Ltd.		30,872		310,223
Pacific Rubiales Energy Corp.		10,717		36,099
Painted Pony Petroleum Ltd.*		7,575		46,716
Paramount Resources Ltd., Class A*		1,591		46,880
Parex Resources, Inc.*		7,102		56,757
Parkland Fuel Corp.		6,533		142,068
Paz Oil Co., Ltd.		140		21,385
Pembina Pipeline Corp.		7,931		274,941
Pengrowth Energy Corp.		8,351		27,923
Penn West Petroleum Ltd.		19,216		47,594
Peyto Exploration & Development Corp.		5,332		154,380
PrairieSky Royalty Ltd.		3,925		107,356
Premier Oil PLC*		137,758		371,321
Raging River Exploration, Inc.*		10,400		81,139
Repsol S.A.		24,255		500,500
RMP Energy, Inc.*		24,455		65,415


	Shares		Value
Oil, Gas & Consumable Fuels – (continued)
Royal Dutch Shell PLC, Class A		108,411	$	3,431,139
Royal Dutch Shell PLC, Class B		64,477		2,075,336
San-Ai Oil Co., Ltd.		10,000		67,018
Santos Ltd.		26,217		171,633
Saras SpA*		69,316		134,373
Showa Shell Sekiyu KK		10,200		98,701
Soco International PLC		28,497		79,440
Spartan Energy Corp.*		28,181		79,337
Statoil ASA		27,230		574,556
Suncor Energy, Inc.		38,980		1,264,416
Surge Energy, Inc.		6,135		22,235
Talisman Energy, Inc.		26,649		211,872
TonenGeneral Sekiyu KK		12,000		115,217
TORC Oil & Gas Ltd.		11,685		101,294
Total Gabon		124		41,268
TOTAL S.A.		56,065		3,046,004
Tourmaline Oil Corp.*		3,421		117,606
TransCanada Corp.		19,178		886,661
Trilogy Energy Corp.		5,989		45,539
Tullow Oil PLC		10,052		63,937
United Energy Group Ltd.*		768,000		118,899
Veresen, Inc.		3,731		55,876
Vermilion Energy, Inc.		2,252		107,984
Washington H Soul Pattinson & Co., Ltd.		3,833		44,896
Whitecap Resources, Inc.		9,900		122,192
Whitehaven Coal Ltd.*		74,920		97,504
Woodside Petroleum Ltd.		17,687		488,969
				32,257,644
Paper & Forest Products – 0.4%
Canfor Corp.*		300		5,922
Canfor Pulp Products, Inc.		8,058		102,517
Daio Paper Corp.		3,745		39,681
Hokuetsu Kishu Paper Co., Ltd.		28,800		156,912
Holmen AB, Class B		194		6,412
Interfor Corp.*		14,409		205,444
KuangChi Science Ltd.*		55,000		25,899
Metsa Board Oyj		6,595		39,019
Mondi PLC		11,480		233,402
Nippon Paper Industries Co., Ltd.		4,700		82,280
Norbord, Inc.		4,820		96,858
Oji Holdings Corp.		30,000		133,868

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)
Paper & Forest Products – (continued)
Semapa-Sociedade de Investimento e Gestao		16,338	$	234,154
Stella-Jones, Inc.		2,228		79,997
Stora Enso Oyj, Class R		16,248		171,689
UPM-Kymmene Oyj		12,871		233,790
West Fraser Timber Co., Ltd.		2,760		141,458
Western Forest Products, Inc.		47,047		71,080
				2,060,382
Personal Products – 0.5%
Aderans Co., Ltd.		7,800		73,131
Beiersdorf AG		2,565		224,073
Dr Ci:Labo Co., Ltd.		900		33,843
Euglena Co., Ltd.*		3,900		61,627
Fancl Corp.		2,500		32,569
Kao Corp.		13,500		648,546
Kobayashi Pharmaceutical Co., Ltd.		1,200		84,232
Kose Corp.		200		13,002
L’Oreal S.A.*		6,623		1,264,978
Mandom Corp.		1,300		50,188
Milbon Co., Ltd.		2,440		77,480
Noevir Holdings Co., Ltd.		1,900		40,677
Oriflame Cosmetics S.A. (SDR)		10,352		178,642
Pola Orbis Holdings, Inc.		900		46,703
Shiseido Co., Ltd.		9,000		162,635
				2,992,326
Pharmaceuticals – 6.7%
Almirall S.A.		5,963		112,255
Astellas Pharma, Inc.		56,600		884,212
AstraZeneca PLC		32,483		2,244,574
Bayer AG (Registered)*		21,808		3,174,360
BTG PLC*		16,868		187,156
Chugai Pharmaceutical Co., Ltd.		5,200		158,820
Concordia Healthcare Corp.		1,261		88,075
Cosmo Pharmaceuticals S.A.*		286		48,140
Daiichi Sankyo Co., Ltd.		16,200		282,319
Dechra Pharmaceuticals PLC		5,092		80,051
Eisai Co., Ltd.		6,800		456,402
Galenica AG (Registered)		282		263,971
GlaxoSmithKline PLC		124,189		2,890,385


	Shares		Value
Pharmaceuticals – (continued)
GW Pharmaceuticals PLC*		12,098	$	111,364
H Lundbeck A/S*		500		9,715
Haw Par Corp. Ltd.		3,200		21,598
Hikma Pharmaceuticals PLC		2,711		85,281
Hisamitsu Pharmaceutical Co., Inc.		1,200		51,843
Ipsen S.A.		2,653		152,416
JCR Pharmaceuticals Co., Ltd.		600		14,605
Kaken Pharmaceutical Co., Ltd.		1,000		35,807
Kissei Pharmaceutical Co., Ltd.		1,400		41,765
KYORIN Holdings, Inc.		1,000		23,030
Kyowa Hakko Kirin Co., Ltd.		9,000		132,063
Meda AB, Class A		5,406		90,830
Merck KGaA		3,600		390,449
Mitsubishi Tanabe Pharma Corp.		4,600		78,223
Mochida Pharmaceutical Co., Ltd.		500		34,261
Nichi-iko Pharmaceutical Co., Ltd.		5,500		116,278
Nippon Shinyaku Co., Ltd.		2,000		66,683
Novartis AG (Registered)		60,219		6,212,153
Novo Nordisk A/S, Class B		51,120		2,906,778
Ono Pharmaceutical Co., Ltd.		2,200		238,439
Orion Oyj, Class A		1,866		60,282
Orion Oyj, Class B		1,450		47,525
Otsuka Holdings Co., Ltd.		9,100		288,467
Recordati SpA		2,678		53,325
Roche Holding AG		19,082		5,482,832
Rohto Pharmaceutical Co., Ltd.		1,000		14,406
Sanofi S.A.		30,647		3,131,944
Santen Pharmaceutical Co., Ltd.		9,500		125,508
Sawai Pharmaceutical Co., Ltd.		700		40,010
Seikagaku Corp.		1,800		30,444
Shionogi & Co., Ltd.		7,600		250,539
Shire PLC		14,348		1,176,330
Stada Arzneimittel AG		10,832		398,545
Sumitomo Dainippon Pharma Co., Ltd.		3,800		42,836
Taisho Pharmaceutical Holdings Co., Ltd.		1,400		98,270
Takeda Pharmaceutical Co., Ltd.		19,600		1,008,416
Teva Pharmaceutical Industries Ltd.		22,737		1,388,771
Torii Pharmaceutical Co., Ltd.		700		18,601
Towa Pharmaceutical Co., Ltd.		900		47,606
Tsumura & Co.		900		21,096
UCB S.A.*		3,106		223,861

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)
Pharmaceuticals – (continued)
The United Laboratories International Holdings Ltd.*		18,000	$	12,169
Valeant Pharmaceuticals International, Inc.*		8,422		1,819,152
Virbac S.A.		281		73,082
ZERIA Pharmaceutical Co., Ltd.		3,100		49,348
				37,587,666
Professional Services – 0.7%
Adecco S.A. (Registered)*		5,788		473,839
AF AB, Class B		8,046		109,363
Bureau Veritas S.A.		5,588		131,651
Capita PLC		17,373		305,425
DKSH Holding AG*		2,910		229,688
en-japan, Inc.		500		7,479
Experian PLC		27,585		495,130
Hays PLC		74,091		175,116
Intertek Group PLC		3,873		155,462
McMillan Shakespeare Ltd.		10,384		95,008
Meitec Corp.		2,400		77,313
Michael Page International PLC		26,309		215,696
Morneau Shepell, Inc.		3,100		45,582
Nihon M&A Center, Inc.		2,700		94,197
Randstad Holding N.V.		3,264		194,943
Recruit Holdings Co., Ltd.		1,900		64,143
SAI Global Ltd.		14,655		45,659
Seek Ltd.		7,421		95,116
SGS S.A. (Registered)		136		264,190
Stantec, Inc.		2,156		58,009
Teleperformance		4,612		345,996
Temp Holdings Co., Ltd.		1,900		60,729
Veda Group Ltd.		18,430		33,289
WS Atkins PLC		11,976		247,167
Yumeshin Holdings Co., Ltd.		7,500		51,203
				4,071,393
Real Estate Investment Trusts (REITs) – 2.3%
Abacus Property Group		65,317		151,980
Activia Properties, Inc.		5		45,417
Advance Residence Investment Corp.		20		47,096
AEON REIT Investment Corp.		54		74,500


	Shares		Value
Real Estate Investment Trusts (REITs) – (continued)
AIMS AMP Capital Industrial REIT		78,000	$	90,098
Allied Properties Real Estate Investment Trust		122		4,029
Altarea S.C.A.		778		151,865
Argosy Property Ltd.		33,123		28,623
Artis Real Estate Investment Trust		5,865		72,051
Ascendas Hospitality Trust		82,000		43,645
Ascendas Real Estate Investment Trust		74,000		137,994
Ascott Residence Trust		21,600		20,792
Befimmo S.A.		2,409		166,337
Beni Stabili SpA SIIQ		50,234		41,345
Big Yellow Group PLC		5,819		59,735
Boardwalk Real Estate Investment Trust		307		15,400
The British Land Co. PLC		31,341		400,959
Brookfield Canada Office Properties		200		4,678
BWP Trust		20,265		48,591
Cache Logistics Trust		25,000		22,272
Calloway Real Estate Investment Trust		780		19,673
Cambridge Industrial Trust		187,340		99,006
Canadian Apartment Properties REIT		444		10,693
Canadian Real Estate Investment Trust		100		3,766
CapitaCommercial Trust		58,000		74,221
CapitaMall Trust		86,000		142,192
CapitaRetail China Trust		37,540		49,173
CDL Hospitality Trusts		4,000		5,179
Champion REIT		51,000		27,635
Charter Hall Group		13,598		55,021
Charter Hall Retail REIT		36,384		123,688
Chartwell Retirement Residences		346		3,459
Cofinimmo S.A.		1,464		161,375
Comforia Residential REIT, Inc.		49		107,278
Cominar Real Estate Investment Trust, Class U		1,600		25,257
Crombie Real Estate Investment Trust		1,400		15,303
Cromwell Property Group		255,361		222,565
Daiwa House REIT Investment Corp.		4		17,849

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)
Real Estate Investment Trusts (REITs) – (continued)
Daiwa House Residential Investment Corp.		34	$	74,125
Daiwa Office Investment Corp.		2		10,546
Derwent London PLC		4,117		217,642
Dexus Property Group		25,565		148,813
DNZ Property Fund Ltd.		34,981		54,065
Dream Global Real Estate Investment Trust		5,589		46,650
Dream Office Real Estate Investment Trust		507		11,586
Eurocommercial Properties N.V. (CVA)		4,095		187,125
Far East Hospitality Trust		32,000		19,810
Federation Centres		57,630		134,094
First Real Estate Investment Trust		81,000		88,672
Fonciere des Murs S.C.A.*		11,230		318,370
Fonciere Des Regions		1,665		157,522
Fortune Real Estate Investment Trust		21,000		21,430
Frasers Centrepoint Trust		47,000		73,451
Frasers Commercial Trust		51,764		59,011
Frontier Real Estate Investment Corp.		11		53,773
Fukuoka REIT Corp.		4		7,277
Gecina S.A.		279		38,235
Global One Real Estate Investment Corp.		12		42,166
GLP J-Reit		44		45,151
Goodman Group		46,533		229,393
Goodman Property Trust		52,532		47,194
The GPT Group		44,371		156,439
Granite Real Estate Investment Trust		3,074		106,185
Great Portland Estates PLC		14,762		180,917
Green REIT PLC		51,019		90,042
Grivalia Properties REIC		1,179		9,380
Growthpoint Properties Australia Ltd.		30,545		76,373
H&R Real Estate Investment Trust		1,437		27,465
Hammerson PLC		13,860		142,493
Hankyu Reit, Inc.		25		31,838
Hansteen Holdings PLC		63,126		114,276
Heiwa Real Estate REIT, Inc.		47		37,939
ICADE		687		59,699


	Shares		Value
Real Estate Investment Trusts (REITs) – (continued)
Ichigo Real Estate Investment Corp.		150	$	112,560
Industrial & Infrastructure Fund Investment Corp.		6		28,930
Intu Properties PLC		33,210		175,052
Investa Office Fund		34,581		101,466
Invincible Investment Corp.		157		82,127
Japan Excellent, Inc.		66		87,305
Japan Hotel REIT Investment Corp.		138		101,825
Japan Logistics Fund, Inc.		15		31,838
Japan Prime Realty Investment Corp.		18		64,753
Japan Real Estate Investment Corp.		30		141,890
Japan Rental Housing Investments, Inc.		27		19,065
Japan Retail Fund Investment Corp.		52		110,805
Kenedix Office Investment Corp.		6		32,489
Kenedix Residential Investment Corp.		25		72,700
Keppel REIT		3,160		2,934
Kiwi Property Group Ltd.		2,741		2,702
Klepierre		10,961		531,826
Land Securities Group PLC		24,604		472,249
The Link REIT		56,801		352,847
Lippo Malls Indonesia Retail Trust		482,000		131,003
Londonmetric Property PLC		13,999		35,496
Mapletree Commercial Trust		4,000		4,651
Mapletree Industrial Trust		5,070		6,163
Mapletree Logistics Trust		5,067		4,705
Mercialys S.A.		1,703		42,231
MID Reit, Inc.		33		98,032
Mirvac Group		88,203		139,836
Morguard Real Estate Investment Trust		9,384		134,184
Mori Hills REIT Investment Corp.		20		27,526
Mori Trust Sogo Reit, Inc.		15		29,581
Nippon Accommodations Fund, Inc.		8		31,152
Nippon Building Fund, Inc.		40		198,880
Nippon Prologis REIT, Inc.		30		64,929
Nomura Real Estate Office Fund, Inc.		5		22,938
Nomura Real Estate Residential Fund, Inc.		10		56,489

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)
Real Estate Investment Trusts (REITs) – (continued)
Northern Property Real Estate Investment Trust		1,729	$	35,829
Novion Property Group		75,470		147,032
Orix JREIT, Inc.		43		63,600
OUE Hospitality Trust		143,500		105,630
Parkway Life Real Estate Investment Trust		29,000		53,641
Precinct Properties New Zealand Ltd.		22,735		19,992
Premier Investment Corp.		28		155,595
Property for Industry Ltd.		45,300		54,665
Pure Industrial Real Estate Trust		21,619		90,670
Redefine International PLC		27,826		25,080
Regal Real Estate Investment Trust		56,000		16,689
Reit 1 Ltd.		25,522		76,689
RioCan Real Estate Investment Trust		4,163		102,627
Segro PLC		30,608		201,788
Sekisui House SI Residential Investment Corp.		40		44,422
Shaftesbury PLC		14,973		193,282
Shopping Centres Australasia Property Group		72,460		121,735
Starhill Global REIT		29,000		19,157
Stockland		71,386		249,997
Suntec Real Estate Investment Trust		63,000		84,187
Tokyu REIT, Inc.		40		53,848
Top REIT, Inc.		8		34,495
Unibail-Rodamco SE		2,633		727,276
United Urban Investment Corp.		84		133,577
Vital Healthcare Property Trust		47,607		60,530
Warehouses De Pauw S.C.A.		601		47,667
Wereldhave N.V.		2,092		134,135
Westfield Corp.		47,903		357,054
Workspace Group PLC		7,149		92,724
				12,966,659
Real Estate Management & Development – 2.8%
Aeon Mall Co., Ltd.		2,190		40,993
Africa Israel Properties Ltd.		2,839		44,013
Airport City Ltd.*		5,200		54,923
Allreal Holding AG (Registered)*		1,119		160,164
Amot Investments Ltd.		8,298		28,091


	Shares		Value
Real Estate Management & Development – (continued)
Ascendas India Trust		132,000	$	89,193
Aspial Corp. Ltd.		169,000		49,122
Atrium European Real Estate Ltd.*		1,234		6,056
Atrium Ljungberg AB, Class B		1,034		15,082
Aveo Group		21,223		46,369
Azrieli Group		639		27,553
Bayside Land Corp.		252		83,156
Brookfield Asset Management, Inc., Class A		15,382		825,072
Bukit Sembawang Estates Ltd.		23,500		91,371
CA Immobilien Anlagen AG*		6,707		122,127
Capital & Counties Properties PLC		22,950		139,310
CapitaLand Ltd.		90,000		250,727
Castellum AB		1,191		18,570
Chinese Estates Holdings Ltd.		7,000		21,719
City Developments Ltd.		2,300		18,528
Citycon Oyj*		15,390		49,908
CK Hutchison Holdings Ltd.		37,000		804,332
CLS Holdings PLC*		4,338		122,262
Conwert Immobilien Invest SE*		3,153		39,889
Countrywide PLC		13,288		107,207
Daejan Holdings PLC		701		58,441
Daibiru Corp.		400		3,958
Daikyo, Inc.		2,000		3,025
Daito Trust Construction Co., Ltd.		1,500		175,169
Daiwa House Industry Co., Ltd.		16,500		369,240
Deutsche Annington Immobilien SE		8,000		269,515
Deutsche Euroshop AG		3,840		191,759
Deutsche Wohnen AG		8,072		212,107
Emperor International Holdings Ltd.		148,000		36,660
Fabege AB		12,557		191,430
Far East Consortium International Ltd.		231,000		109,671
Far East Orchard Ltd.		26,876		34,900
Fastighets AB Balder, Class B*		7,006		124,928
First Capital Realty, Inc.		1,846		30,481
FirstService Corp.		704		45,905
Foxtons Group PLC		11,073		37,436
Fragrance Group Ltd.		287,000		44,419
Gazit-Globe Ltd.		475		6,284
Global Logistic Properties Ltd.		105,000		217,999
Goldcrest Co., Ltd.		1,000		19,763
Grainger PLC		22,537		73,458

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)
Real Estate Management & Development – (continued)
Great Eagle Holdings Ltd.		8,281	$	30,608
GuocoLand Ltd.		20,000		28,689
Hang Lung Group Ltd.		16,000		84,839
Hang Lung Properties Ltd.		47,000		159,170
Heiwa Real Estate Co., Ltd.		4,900		66,865
Hemfosa Fastigheter AB*		4,925		113,831
Henderson Land Development Co., Ltd.		31,627		254,203
HKR International Ltd.		118,400		67,211
Ho Bee Land Ltd.		8,000		14,012
Hufvudstaden AB, Class A		6,032		83,433
Hulic Co., Ltd.		8,800		94,787
Hysan Development Co., Ltd.		19,000		88,000
IMMOFINANZ AG*		1,419		4,258
Inmobiliaria Colonial S.A.*		105,686		72,477
Jerusalem Economy Ltd.		3,682		14,094
Jerusalem Oil Exploration*		1,144		43,524
Jowa Holdings Co., Ltd.		2,000		81,390
K Wah International Holdings Ltd.		280,365		162,407
Kabuki-Za Co., Ltd.		1,000		41,740
Kenedix, Inc.		6,700		26,818
Kerry Properties Ltd.		11,500		47,032
Killam Properties, Inc.		5,663		50,587
Klovern AB, Class A		13,379		14,981
Kowloon Development Co., Ltd.		118,000		151,018
Kungsleden AB		33,087		240,713
Langham Hospitality Investments and Langham Hospitality Investments Ltd.		135,000		60,959
LEG Immobilien AG*		3,618		281,115
Lend Lease Group		12,738		161,256
Leopalace21 Corp.*		7,900		45,814
Melcor Developments Ltd.		2,483		35,690
Melisron Ltd.		1,917		73,528
Mitsubishi Estate Co., Ltd.		30,382		716,708
Mitsui Fudosan Co., Ltd.		24,000		714,264
Mobimo Holding AG (Registered)*		675		150,288
Morguard Corp.		1,505		192,615
New World Development Co., Ltd.		92,533		122,961
Nexity S.A.		4,117		180,703
Nomura Real Estate Holdings, Inc.		5,800		118,355


	Shares		Value
Real Estate Management & Development – (continued)
Norstar Holdings, Inc.		2,107	$	57,477
NTT Urban Development Corp.		3,200		33,612
Open House Co., Ltd.		3,600		92,504
Oxley Holdings Ltd.		92,000		35,423
Polytec Asset Holdings Ltd.		95,000		13,482
PSP Swiss Property AG (Registered)*		2,925		272,238
Raysum Co., Ltd.*		628		6,087
Relo Holdings, Inc.		227		18,703
Sagax AB, Class B		12,152		84,042
Savills PLC		29,301		373,060
Sinarmas Land Ltd.		32,000		17,032
Sino Land Co., Ltd.		104,742		185,129
Sponda Oyj		28,892		126,133
St. Modwen Properties PLC		27,954		186,869
Sumitomo Real Estate Sales Co., Ltd.		1,100		30,058
Sumitomo Realty & Development Co., Ltd.		9,000		349,110
Sun Frontier Fudousan Co., Ltd.		1,000		9,610
Sun Hung Kai Properties Ltd.		45,435		756,747
Sunshine 100 China Holdings Ltd.(a) *		196,000		97,100
Swire Pacific Ltd.		42,500		107,578
Swire Pacific Ltd., Class A		19,000		257,136
Swire Properties Ltd.		45,800		157,765
Swiss Prime Site AG (Registered)*		4,029		353,489
TAG Immobilien AG		22,206		284,661
TOC Co., Ltd.		2,600		19,901
Tokyo Tatemono Co., Ltd.		14,000		102,131
Tokyu Fudosan Holdings Corp.		16,400		122,243
UK Commercial Property Trust Ltd.		67,970		95,783
The UNITE Group PLC		26,179		240,981
UOL Group Ltd.		9,289		55,963
Wallenstam AB, Class B		4,663		78,514
The Wharf Holdings Ltd.		26,000		188,011
Wheelock & Co., Ltd.		24,000		135,619
Wheelock Properties Singapore Ltd.		28,000		40,587
Wihlborgs Fastigheter AB		6,325		122,329
Wing Tai Holdings Ltd.		22,000		32,554
Yoma Strategic Holdings Ltd.*		118,666		45,691
				15,588,580

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)
Road & Rail – 1.5%
Asciano Ltd.		27,135	$	141,472
Aurizon Holdings Ltd.		52,652		201,417
Canadian National Railway Co.		21,960		1,412,329
Canadian Pacific Railway Ltd.		4,680		888,785
Central Japan Railway Co.		3,700		663,353
ComfortDelGro Corp. Ltd.		36,000		83,440
DSV A/S		5,807		201,675
East Japan Railway Co.		7,900		699,428
Firstgroup PLC*		253,935		388,479
Fukuyama Transporting Co., Ltd.		5,000		28,453
Go-Ahead Group PLC		5,461		207,287
Hankyu Hanshin Holdings, Inc.		27,000		163,349
Hitachi Transport System Ltd.		4,700		76,036
Keikyu Corp.		10,000		79,636
Keio Corp.		17,000		131,545
Keisei Electric Railway Co., Ltd.		3,000		35,623
Kintetsu Group Holdings Co., Ltd.		51,000		181,123
MTR Corp. Ltd.		46,166		227,520
Nagoya Railroad Co., Ltd.		14,000		55,452
Nankai Electric Railway Co., Ltd.		15,000		71,948
National Express Group PLC		76,482		337,909
Nippon Express Co., Ltd.		16,000		92,254
Nippon Konpo Unyu Soko Co., Ltd.		12,000		211,782
Nishi-Nippon Railroad Co., Ltd.		1,000		4,387
Northgate PLC		8,493		84,183
Odakyu Electric Railway Co., Ltd.		17,000		171,463
Sankyu, Inc.		13,669		64,421
Seino Holdings Co., Ltd.		2,000		23,030
Senko Co., Ltd.		16,000		101,345
Sixt SE		3,557		170,991
Sixt SE (Preference)		5,358		197,529
SMRT Corp. Ltd.		17,000		21,626
Sotetsu Holdings, Inc.		1,000		4,755
Stagecoach Group PLC		834		4,654
Tobu Railway Co., Ltd.		20,000		95,429
Tokyu Corp.		33,000		220,331
TransForce, Inc.		2,300		51,744
Transport International Holdings Ltd.		47,200		117,648
West Japan Railway Co.		4,900		271,922
				8,185,753


	Shares		Value
Semiconductors & Semiconductor Equipment – 0.9%
Advantest Corp.		2,300	$	27,234
AIXTRON SE*		12,268		81,478
ams AG		5,405		295,663
ARM Holdings PLC		38,436		658,001
ASM International N.V.		5,014		243,868
ASM Pacific Technology Ltd.		5,000		55,992
ASML Holding N.V.		9,379		1,016,387
CSR PLC		11,056		149,515
Dialog Semiconductor PLC*		4,862		220,975
Disco Corp.		300		27,476
EZchip Semiconductor Ltd.*		1,400		27,244
Imagination Technologies Group PLC*		14,747		44,532
Infineon Technologies AG		30,017		355,864
Melexis N.V.		996		61,484
Micronics Japan Co., Ltd.		1,200		36,901
Nordic Semiconductor ASA*		4,579		34,940
Nuflare Technology, Inc.		1,000		42,868
REC Silicon ASA*		169,025		47,328
Rohm Co., Ltd.		2,200		153,322
Sanken Electric Co., Ltd.		10,475		80,267
SCREEN Holdings Co., Ltd.		9,000		61,369
Shindengen Electric Manufacturing Co., Ltd.		19,000		97,644
Shinko Electric Industries Co., Ltd.		19,100		153,062
STMicroelectronics N.V.		15,663		124,964
Sumco Corp.		600		9,150
Tokyo Electron Ltd.		4,500		248,182
Tokyo Seimitsu Co., Ltd.		10,400		225,433
Tower Semiconductor Ltd.*		9,626		146,739
Ulvac, Inc.*		10,100		172,680
Xinyi Solar Holdings Ltd.		222,000		78,190
				4,978,752
Software – 1.0%
Allot Communications Ltd.*		3,000		26,610
AVEVA Group PLC		4,095		106,414
Capcom Co., Ltd.		10,700		200,284
COLOPL, Inc.		1,000		20,657
Computer Modelling Group Ltd.		1,600		17,582
Constellation Software, Inc.		380		148,392
Dassault Systemes		3,556		274,146
The Descartes Systems Group, Inc.*		4,000		59,872

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)
Software – (continued)
Fidessa Group PLC		4,237	$	145,460
Fuji Soft, Inc.		3,900		79,486
Gemalto N.V.		1,865		173,664
GungHo Online Entertainment, Inc.		6,700		27,546
IGG, Inc.		68,000		59,305
Justsystems Corp.*		3,600		22,743
Koei Tecmo Holdings Co., Ltd.		1,200		18,290
Konami Corp.		1,500		27,689
Micro Focus International PLC		12,335		238,275
Monitise PLC*		137,710		29,099
Nexon Co., Ltd.		2,100		26,726
NICE-Systems Ltd.		1,452		88,199
Nintendo Co., Ltd.		2,600		441,481
NSD Co., Ltd.		6,380		92,818
OBIC Business Consultants Ltd.		1,000		37,603
Open Text Corp.		3,844		193,461
Oracle Corp.		200		9,142
Playtech PLC		4,162		52,575
The Sage Group PLC		34,650		258,787
SAP SE		23,465		1,786,131
Silverlake Axis Ltd.		47,000		45,064
SimCorp A/S		4,729		163,314
Software AG		3,343		97,134
Square Enix Holdings Co., Ltd.		1,800		38,055
Temenos Group AG (Registered)*		6,989		254,376
Trend Micro, Inc.		2,500		84,921
UBISOFT Entertainment*		10,643		196,004
Xero Ltd.*		1,674		25,363
				5,566,668
Specialty Retail – 1.4%
ABC-Mart, Inc.		400		22,863
Adastria Holdings Co., Ltd.		1,110		33,716
Alpen Co., Ltd.		2,600		42,453
AOKI Holdings, Inc.		8,800		122,143
Aoyama Trading Co., Ltd.		500		17,318
AP Eagers Ltd.		1,953		13,710
Autobacs Seven Co., Ltd.		1,400		21,877
AutoCanada, Inc.		1,200		39,579
Automotive Holdings Group Ltd.		41,063		138,299
Bic Camera, Inc.		4,100		40,907
Chiyoda Co., Ltd.		2,800		60,155


	Shares		Value
Specialty Retail – (continued)
Chow Sang Sang Holdings International Ltd.		68,000	$	156,684
Chow Tai Fook Jewellery Group Ltd.		16,000		19,404
Clas Ohlson AB, Class B		5,888		100,832
DCM Holdings Co., Ltd.		16,100		134,402
Delek Automotive Systems Ltd.		1,942		23,573
Dixons Carphone PLC		37,502		244,529
Dufry AG (Registered)*		2,149		317,453
Dunelm Group PLC		6,623		91,703
EDION Corp.		21,300		155,563
Esprit Holdings Ltd.		30,800		29,246
Fast Retailing Co., Ltd.		1,400		553,297
FF Group*		230		6,933
Fielmann AG		1,325		90,390
Geo Holdings Corp.		4,100		44,710
Giordano International Ltd.		280,000		140,160
Gulliver International Co., Ltd.		10,200		79,609
Halfords Group PLC		18,769		131,179
Hennes & Mauritz AB, Class B		23,679		942,300
Hikari Tsushin, Inc.		400		26,740
Howden Joinery Group PLC		18,688		133,887
Inditex S.A.		29,485		947,405
JB Hi-Fi Ltd.		9,404		145,307
Jin Co., Ltd.		900		34,746
Joshin Denki Co., Ltd.		6,000		48,082
Joyful Honda Co., Ltd.		2,100		82,126
JUMBO S.A.		730		7,517
Kathmandu Holdings Ltd.		10,675		11,622
Kingfisher PLC		46,792		252,611
Komeri Co., Ltd.		1,300		29,407
K’s Holdings Corp.		700		23,398
Leon’s Furniture Ltd.		900		11,458
L’Occitane International S.A.		8,750		25,795
Luk Fook Holdings International Ltd.		63,672		199,613
Mekonomen AB		1,344		33,397
Michael Hill International Ltd.		24,521		22,029
Nishimatsuya Chain Co., Ltd.		9,400		87,268
Nitori Holdings Co., Ltd.		2,200		169,499
OSIM International Ltd.		10,000		15,326
Pal Co., Ltd.		1,700		54,692
Pets at Home Group PLC		33,504		134,382

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)
Specialty Retail – (continued)
Premier Investments Ltd.		9,895	$	99,900
RONA, Inc.		13,711		179,757
Sa Sa International Holdings Ltd.		26,000		13,250
Sanrio Co., Ltd.		1,200		32,289
Shimachu Co., Ltd.		1,400		36,208
Shimamura Co., Ltd.		500		49,971
Sports Direct International PLC*		3,304		31,429
Super Retail Group Ltd.		39,234		305,745
SuperGroup PLC*		1,528		24,186
T-Gaia Corp.		3,400		46,197
Tsutsumi Jewelry Co., Ltd.		500		11,899
United Arrows Ltd.		200		6,159
USS Co., Ltd.		3,500		61,887
VT Holdings Co., Ltd.		19,400		97,430
WH Smith PLC		11,791		260,019
Workman Co., Ltd.		1,200		64,026
World Duty Free SpA*		9,479		106,323
Xebio Co., Ltd.		7,200		126,648
Yamada Denki Co., Ltd.		23,500		96,419
Yellow Hat Ltd.		4,800		106,252
				8,067,288
Technology Hardware, Storage & Peripherals – 0.6%
Blackberry Ltd.*		12,242		123,810
Brother Industries Ltd.		9,300		149,133
Canon, Inc.		28,300		1,012,859
FUJIFILM Holdings Corp.		13,500		511,594
Hitachi Maxell Ltd.		9,400		152,150
Japan Digital Laboratory Co., Ltd.		4,716		71,763
Konica Minolta, Inc.		9,200		102,171
Logitech International S.A. (Registered)		11,233		169,652
NEC Corp.		72,000		241,865
Neopost S.A.		2,207		106,230
Ricoh Co., Ltd.		17,400		181,750
Riso Kagaku Corp.		3,800		62,905
Seiko Epson Corp.		9,200		161,521
Toshiba TEC Corp.		5,000		27,785
Wacom Co., Ltd.		16,500		86,174
Wincor Nixdorf AG		6,527		248,341
Yunbo Digital Synergy Group Ltd.*		46,000		27,358
				3,437,061


	Shares		Value
Textiles, Apparel & Luxury Goods – 1.3%
adidas AG		5,050	$	415,467
Asics Corp.		3,500		89,789
Brunello Cucinelli SpA		820		15,179
Burberry Group PLC		11,703		313,651
Christian Dior SE		1,537		301,400
Cie Financiere Richemont S.A. (Registered)		14,041		1,253,634
Delta-Galil Industries Ltd.		1,795		55,981
Descente Ltd.		2,800		36,009
Gerry Weber International AG		1,179		38,716
Gildan Activewear, Inc.		8,038		253,765
Global Brands Group Holding Ltd.*		528,000		108,309
Gunze Ltd.		2,000		5,398
Hermes International		766		289,304
HUGO BOSS AG		1,160		143,242
The Japan Wool Textile Co., Ltd.		13,000		97,769
Kering		1,935		357,872
Li & Fung Ltd.		186,000		189,812
Luxottica Group SpA		4,277		282,763
LVMH Moet Hennessy Louis Vuitton SE		6,954		1,220,275
Moncler SpA		3,061		54,537
Onward Holdings Co., Ltd.		1,000		6,727
Pacific Textiles Holdings Ltd.		61,000		84,679
Pandora A/S		3,168		327,978
Puma SE		125		25,472
Safilo Group SpA*		5,889		85,918
Salvatore Ferragamo SpA		939		29,293
Samsonite International S.A.		27,300		99,850
Seiko Holdings Corp.		34,000		181,549
Seiren Co., Ltd.		14,700		128,734
Stella International Holdings Ltd.		14,000		37,930
The Swatch Group AG		765		343,266
The Swatch Group AG (Registered)		2,277		200,869
Ted Baker PLC		3,254		142,617
Texwinca Holdings Ltd.		138,000		134,063
Tod’s SpA		231		21,277
TSI Holdings Co., Ltd.		4,800		32,890
Wacoal Holdings Corp.		3,000		33,417
Yondoshi Holdings, Inc.		1,400		30,838

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)
Textiles, Apparel & Luxury Goods – (continued)
Yue Yuen Industrial Holdings Ltd.		12,500	$	47,574
				7,517,813
Thrifts & Mortgage Finance – 0.2%
Aareal Bank AG		5,046		218,256
Equitable Group, Inc.		2,467		124,445
First National Financial Corp.		2,172		40,472
Genworth MI Canada, Inc.		1,000		29,020
Home Capital Group, Inc.		1,940		76,271
The Paragon Group of Cos. PLC		73,449		482,079
				970,543
Tobacco – 0.9%
British American Tobacco PLC		48,590		2,682,544
Imperial Tobacco Group PLC		26,281		1,289,164
Japan Tobacco, Inc.		27,800		978,239
Swedish Match AB		4,950		152,228
				5,102,175
Trading Companies & Distributors – 1.5%
AddTech AB, Class B		4,329		56,897
Ashtead Group PLC		11,252		194,702
BayWa AG		3,035		114,099
Brenntag AG		4,056		244,746
Bunzl PLC		8,505		240,358
Cramo Oyj		6,345		118,380
Diploma PLC		9,677		118,226
Finning International, Inc.		4,951		101,043
Grafton Group PLC		20,187		255,624
Hanwa Co., Ltd.		45,000		186,889
Inaba Denki Sangyo Co., Ltd.		2,870		104,085
Inabata & Co., Ltd.		4,600		48,472
Indutrade AB		3,354		163,877
ITOCHU Corp.		43,300		535,506
Iwatani Corp.		6,992		47,501
Japan Pulp & Paper Co., Ltd.		9,000		24,743
Kanamoto Co., Ltd.		1,123		32,891
Kanematsu Corp.		79,000		124,768
Kuroda Electric Co., Ltd.		4,500		80,847
Marubeni Corp.		48,000		298,340
MISUMI Group, Inc.		2,700		101,868
Mitani Corp.		2,800		60,226


	Shares		Value
Trading Companies & Distributors – (continued)
Mitsubishi Corp.		39,600	$	857,222
Mitsui & Co., Ltd.		41,300		579,967
MonotaRO Co., Ltd.		400		13,872
Nagase & Co., Ltd.		4,900		65,145
Nippon Steel & Sumikin Bussan Corp.		26,000		89,296
Nishio Rent All Co., Ltd.		1,100		31,345
Noble Group Ltd.		184,900		120,749
Ramirent Oyj		14,674		112,963
Rexel S.A.		60,202		1,135,341
Richelieu Hardware Ltd.		424		22,053
Russel Metals, Inc.		13,011		296,474
Seven Group Holdings Ltd.		1,044		6,061
SIG PLC		119,320		355,912
Sojitz Corp.		32,000		62,839
Sumitomo Corp.		24,800		293,965
Summit Ascent Holdings Ltd.*		56,000		32,728
Toromont Industries Ltd.		3,049		79,066
Toyota Tsusho Corp.		5,600		144,598
Travis Perkins PLC		8,608		274,885
Trusco Nakayama Corp.		3,300		111,406
Wajax Corp.		3,829		80,705
Wakita & Co., Ltd.		2,000		19,938
Wolseley PLC		7,217		429,433
Yamazen Corp.		6,900		61,637
Yuasa Trading Co., Ltd.		3,500		77,446
				8,609,134
Transportation Infrastructure – 0.5%
Abertis Infraestructuras S.A.		11,570		213,465
Aeroports de Paris		1,353		166,544
Ansaldo STS SpA		8,217		87,380
ASTM SpA		7,835		111,588
Atlantia SpA		9,318		262,494
Auckland International Airport Ltd.		8,195		28,763
BBA Aviation PLC		44,787		236,281
Flughafen Wien AG		215		19,273
Flughafen Zuerich AG (Registered)		228		177,528
Fraport AG Frankfurt Airport Services Worldwide		267		16,937
Groupe Eurotunnel SE (Registered)		16,769		268,610
Hamburger Hafen und Logistik AG		2,488		54,838

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)
Transportation Infrastructure – (continued)
Hong Kong Aircraft Engineering Co., Ltd.		2,800	$	30,651
Hutchison Port Holdings Trust, Class U		198,100		133,717
Japan Airport Terminal Co., Ltd.		500		28,370
Kamigumi Co., Ltd.		10,000		100,192
Macquarie Atlas Roads Group		32,243		82,907
Mitsubishi Logistics Corp.		3,000		46,503
Port of Tauranga Ltd.		3,261		41,611
Qube Holdings Ltd.		17,123		37,681
SATS Ltd.		19,000		45,759
SIA Engineering Co., Ltd.		5,000		15,817
Societa Iniziative Autostradali e Servizi SpA		1,647		19,028
The Sumitomo Warehouse Co., Ltd.		11,000		62,413
Sydney Airport		31,972		135,925
Transurban Group		47,314		370,204
Westshore Terminals Investment Corp.		134		3,530
				2,798,009
Water Utilities – 0.1%
The Athens Water Supply & Sewage Co. S.A.		4,959		27,784
Hyflux Ltd.		15,000		10,928
Pennon Group PLC		10,244		135,071
Severn Trent PLC		6,123		199,952
United Utilities Group PLC		17,371		259,207
				632,942
Wireless Telecommunication Services – 1.4%
Cellcom Israel Ltd.*		6,261		28,860
Drillisch AG		2,592		120,158
Freenet AG		26,941		877,436
Japan Communications, Inc.*		9,700		36,070
KDDI Corp.		46,900		1,113,027
M1 Ltd.		7,000		18,814
Millicom International Cellular S.A. (SDR)		1,532		119,436
Mobistar S.A.*		6,133		116,830
NTT DOCOMO, Inc.		38,300		680,099
Okinawa Cellular Telephone Co.		2,600		79,736


	Shares		Value
Wireless Telecommunication Services – (continued)
Partner Communications Co., Ltd.*		4,710	$	11,971
Rogers Communications, Inc., Class B		10,460		372,199
SmarTone Telecommunications Holdings Ltd.		45,240		82,645
SoftBank Corp.		24,541		1,539,067
StarHub Ltd.		9,000		28,742
Tele2 AB, Class B		11,905		158,822
Vodafone Group PLC		676,783		2,397,827
				7,781,739
Total Common Stocks (Cost $534,937,315)				556,955,702
	No. of Rights
RIGHTS – 0.0%^†
Cofinimmo S.A., expiring 05/06/15 at 95.00 EUR*		1,464		869
Constellation Software, Inc., expiring 09/15/15 at 115.00 CAD*		380		113
Haitong International Securities Group Ltd., expiring 05/15/15 at 3.50 HKD* ^		84,000		55,811
Optimal Payments PLC, expiring 05/01/15 at 166.00 GBP*		20,300		43,363
UnipolSai SpA, expiring 05/15/15 at 228.27 EUR* ^		42,674		—
UnipolSai SpA, expiring 05/15/15 at 2.24 EUR* ^		42,674		—
Total Rights (Cost $42,485)				100,156
Total Investment Securities (Cost $534,979,800) – 98.8%				557,055,858
Other assets less liabilities – 1.2%				6,898,235
NET ASSETS – 100.0%			$	563,954,093

*	Non-income producing security.

^	Security fair valued in accordance with procedures adopted by the Board of Trustees. At April 30, 2015, the value of these securities amounted to $353,276 or 0.06% of net assets.

^†	Amount represents less than 0.05%.

^(a)

Securities exempt from registration under 144A of the Securities Act of 1933. These securities may be resold in transactions exempt

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			97

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

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.

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

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, 2015, 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	$	50,452,126
Aggregate gross unrealized depreciation		(30,466,117	)
Net unrealized appreciation	$	19,986,009
Federal income tax cost of investments	$	537,069,849

Futures Contracts

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund had the following open long futures contracts as of April 30, 2015:


	Number of Contracts		Expiration Date		Notional Amount at Value		Unrealized Appreciation (Depreciation)
EURO STOXX 50^® Index Futures Contracts		54		06/19/15	$	2,158,986	$	(11,119	)
FTSE 100^® Index Futures Contracts		14		06/19/15		1,490,740		40,091
Hang Seng Index Futures Contract		1		05/28/15		181,295		1,364
Nikkei 225 Index Futures Contracts		16		06/11/15		1,306,259		37,430
S&P Toronto Stock Exchange 60^® Index Futures Contracts		6		06/18/15		876,483		23,228
SPI 200^® Index Futures Contracts		6		06/18/15		681,125		(10,066	)
							$	80,928

Forward Foreign Currency Contracts

FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund had the following outstanding contracts as of April 30, 2015:


Contracts to Receive		Counterparty	In Exchange For		Receipt Date		Unrealized Appreciation (Depreciation)
CHF	61,230	UBS AG	USD	60,972		06/17/15	$	4,490
CHF	278,696	Bank of New York	USD	290,000		06/17/15		7,958
DKK	459,137	Morgan Stanley	USD	65,364		06/17/15		3,688
EUR	296,107	Citibank N.A.	USD	320,000		06/17/15		11,994
EUR	221,198	Morgan Stanley	USD	234,320		06/17/15		13,687
EUR	258,078	UBS AG	USD	280,000		06/17/15		9,357
GBP	214,375	Morgan Stanley	USD	317,229		06/17/15		12,110
JPY	19,136,923	Morgan Stanley	USD	157,971		06/17/15		2,023
SEK	1,056,112	Morgan Stanley	USD	122,366		06/17/15		4,221
USD	30,772	Morgan Stanley	AUD	40,410		06/17/15		(1,022	)
USD	29,398	Morgan Stanley	CAD	37,576		06/17/15		(1,605	)
USD	260,000	Citibank N.A.	CHF	253,003		06/17/15		(10,489	)

See Accompanying Notes to the Financial Statements.


98		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	130,000	Citibank N.A.	GBP	87,169		06/17/15	$	(3,916	)
USD	90,000	Citibank N.A.	HKD	698,468		06/17/15		(112	)
USD	20,127	Morgan Stanley	HKD	156,306		06/17/15		(39	)
USD	180,318	Citibank N.A.	ILS	722,552		06/17/15		(6,711	)
USD	64,618	Morgan Stanley	NOK	533,926		06/17/15		(6,144	)
USD	70,299	Morgan Stanley	SGD	97,959		06/17/15		(3,594	)
							$	35,896

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, 2015:


Australia	6.0	%
Austria	0.2
Belgium	1.2
Canada	8.8
Denmark	1.6
Finland	0.9
France	8.3
Germany	7.8
Greece	0.1
Hong Kong	3.0
Ireland	0.4
Israel	0.6
Italy	2.2
Japan	20.8
Netherlands	2.5
New Zealand	0.2
Norway	0.9
Portugal	0.2
Singapore	1.6
Spain	2.8
Sweden	2.7
Switzerland	7.4
United Kingdom	18.6
Other¹	1.2
	100.0	%

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

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			99

Schedule of Investments

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund

April 30, 2015 (Unaudited)


	Shares		Value
COMMON STOCKS – 98.9%
Aerospace & Defense – 0.1%
Aselsan Elektronik Sanayi ve Ticaret A/S		1,645	$	8,578
AviChina Industry & Technology Co., Ltd., Class H		92,000		104,686
Embraer S.A.		23,200		181,946
Korea Aerospace Industries Ltd.		930		56,911
				352,121
Air Freight & Logistics – 0.1%
Hyundai Glovis Co., Ltd.		579		127,466
Integer.pl S.A.*		265		11,014
Kerry TJ Logistics Co., Ltd.		6,000		7,964
POS Malaysia Bhd		44,300		63,312
Sinotrans Ltd., Class H		92,000		70,622
				280,378
Airlines – 0.6%
Air China Ltd., Class H		88,000		106,266
AirAsia Bhd		41,900		26,706
AirAsia X Bhd*		69,000		7,943
Asiana Airlines, Inc.*		11,233		80,475
China Airlines Ltd.*		139,000		73,980
China Eastern Airlines Corp. Ltd., Class H*		52,000		40,185
China Southern Airlines Co., Ltd., Class H		550,000		538,565
Eva Airways Corp.*		51,627		40,710
Garuda Indonesia Persero Tbk PT*		449,616		20,638
Grupo Aeromexico SAB de CV*		49,700		87,973
Hanjin Kal Corp.		3,954		121,534
Korean Air Lines Co., Ltd.*		1,390		59,386
Latam Airlines Group S.A.*		11,772		112,654
Pegasus Hava Tasimaciligi A/S*		763		7,530
Thai Airways International PCL (NVDR)*		90,620		34,637
Turk Hava Yollari AO*		25,544		84,792
				1,443,974
Auto Components – 1.1%
Actron Technology Corp.		3,000		11,853


	Shares		Value
Auto Components – (continued)
Apollo Tyres Ltd.		7,111	$	19,402
Astra Otoparts Tbk PT		86,500		20,720
AtlasBX Co., Ltd.*		2,018		75,863
Balkrishna Industries Ltd.		4,918		60,090
Bharat Forge Ltd.		3,546		70,052
Bosch Ltd.		313		110,898
Brisa Bridgestone Sabanci Sanayi ve Ticaret A/S		5,506		18,400
Cheng Shin Rubber Industry Co., Ltd.		64,400		154,345
Dae Won Kang Up Co., Ltd.		3,874		23,598
Depo Auto Parts Ind Co., Ltd.		9,000		41,582
Exide Industries Ltd.		15,469		41,781
Federal Corp.		14,040		8,298
Global & Yuasa Battery Co., Ltd.		2,101		107,794
Halla Holdings Corp.		1,850		119,594
Halla Visteon Climate Control Corp.		1,655		62,371
Hankook Tire Co., Ltd.		2,753		115,821
Hota Industrial Manufacturing Co., Ltd.		18,537		46,908
Hu Lane Associate, Inc.		8,000		40,750
Hyundai Mobis Co., Ltd.		2,706		596,986
Hyundai Wia Corp.		629		89,480
Kenda Rubber Industrial Co., Ltd.		15,365		30,102
Kumho Tire Co., Inc.*		1,940		17,681
Macauto Industrial Co., Ltd.		5,000		20,081
Mahle-Metal Leve S.A.		2,700		18,384
Minth Group Ltd.		20,000		50,212
Motherson Sumi Systems Ltd.		7,375		58,539
Nan Kang Rubber Tire Co., Ltd.		4,000		4,121
Nexen Tire Corp.		650		7,913
Pyeong Hwa Automotive Co., Ltd.*		3,392		56,322
S&T Motiv Co., Ltd.		2,070		122,423
SL Corp.		3,654		63,911
Sri Trang Agro-Industry PCL (NVDR)		103,038		40,321
Sungwoo Hitech Co., Ltd.		2,406		25,362
Tong Yang Industry Co., Ltd.		33,400		39,697
Tung Thih Electronic Co., Ltd.		6,000		27,428

See Accompanying Notes to the Financial Statements.


100		FLEXSHARES SEMIANNUAL REPORT

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


	Shares		Value
COMMON STOCKS – (continued)
Auto Components – (continued)
Weifu High-Technology Group Co., Ltd., Class B		14,100	$	65,960
Xinchen China Power Holdings Ltd.*		58,000		27,986
Xingda International Holdings Ltd.		296,000		96,233
				2,609,262
Automobiles – 1.9%
Astra International Tbk PT		824,100		435,494
Bajaj Auto Ltd.		3,355		102,932
Brilliance China Automotive Holdings Ltd.		126,000		237,333
Byd Co., Ltd., Class H		25,000		152,074
China Motor Corp.		4,000		3,396
Chongqing Changan Automobile Co., Ltd., Class B		31,300		102,568
Dongfeng Motor Group Co., Ltd., Class H		104,000		173,621
DRB-Hicom Bhd		22,700		11,983
Ford Otomotiv Sanayi A/S		2,839		35,074
Geely Automobile Holdings Ltd.		200,000		113,015
Great Wall Motor Co., Ltd., Class H		39,500		301,429
Guangzhou Automobile Group Co., Ltd., Class H		92,000		100,295
Hero MotoCorp Ltd.		3,989		146,264
Hyundai Motor Co.		5,625		886,777
Hyundai Motor Co. (Preference)		3,258		364,680
Jiangling Motors Corp. Ltd., Class B		4,900		26,304
Kandi Technologies Group, Inc.*		4,351		52,517
Kia Motors Corp.		10,464		484,155
Mahindra & Mahindra Ltd.		3,709		66,863
Mahindra & Mahindra Ltd. (GDR)		9,087		163,566
Oriental Holdings Bhd		3,900		8,552
Sanyang Motor Co., Ltd.*		14,000		12,457
Ssangyong Motor Co.*		2,570		24,333
TAN Chong Motor Holdings Bhd		101,500		85,498
Tata Motors Ltd.		9,620		76,980


	Shares		Value
Automobiles – (continued)
Tata Motors Ltd. (ADR)		3,631	$	149,561
Tata Motors Ltd., Class A		15,255		74,624
Tofas Turk Otomobil Fabrikasi A/S		5,005		30,683
TVS Motor Co., Ltd.		6,454		23,945
UMW Holdings Bhd		17,700		52,879
Yulon Motor Co., Ltd.		27,000		35,308
Yulon Nissan Motor Co., Ltd.		2,000		20,799
				4,555,959
Banks – 14.0%
Affin Holdings Bhd		15,210		12,428
Agricultural Bank of China Ltd., Class H		848,000		479,186
Akbank TAS		38,442		111,943
Akbank TAS (ADR)		18,738		108,493
Albaraka Turk Katilim Bankasi A/S		106,600		68,937
Alior Bank S.A.*		1,395		34,014
Allahabad Bank*		36,024		58,561
Alliance Financial Group Bhd		36,900		49,110
AMMB Holdings Bhd		75,200		137,034
Andhra Bank		29,311		35,257
Attijariwafa Bank		3,301		122,412
Banco Bradesco S.A.		29,880		300,190
Banco Bradesco S.A. (Preference)		99,139		1,063,768
Banco de Bogota S.A.		1,029		26,972
Banco de Chile		950,478		109,241
Banco de Credito e Inversiones		1,041		51,899
Banco do Brasil S.A.		33,000		288,181
Banco do Estado do Rio Grande do Sul S.A. (Preference), Class B		58,000		219,503
Banco Santander Brasil S.A.		18,400		99,882
Banco Santander Chile		2,176,418		117,172
Bancolombia S.A.		9,868		107,495
Bancolombia S.A. (Preference)		15,227		172,090
Bangkok Bank PCL (NVDR)		21,300		119,536
Bank Bukopin Tbk PT		1,232,000		66,055
Bank Central Asia Tbk PT		485,800		505,007
Bank Danamon Indonesia Tbk PT		128,400		39,325

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			101

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


	Shares		Value
COMMON STOCKS – (continued)
Banks – (continued)
Bank Handlowy w Warszawie S.A.		1,046	$	33,040
Bank Mandiri Persero Tbk PT		370,000		306,847
Bank Millennium S.A.		14,808		30,075
Bank Negara Indonesia Persero Tbk PT		284,300		140,916
Bank of Ayudhya PCL (NVDR)		70,000		85,469
Bank of China Ltd., Class H		3,144,000		2,161,940
Bank of Chongqing Co., Ltd., Class H		147,077		158,061
Bank of Communications Co., Ltd., Class H		340,000		349,600
Bank of India*		4,806		16,390
Bank of the Philippine Islands		27,208		61,895
Bank Otkritie Financial Corp. PJSC*		9,584		186,145
Bank Pan Indonesia Tbk PT*		119,500		11,985
Bank Pekao S.A.		4,949		257,110
Bank Pembangunan Daerah Jawa Barat Dan Banten Tbk PT		845,300		57,060
Bank Rakyat Indonesia Persero Tbk PT		436,000		391,013
Bank Tabungan Negara Persero Tbk PT		1,362,600		117,207
Bank Zachodni WBK S.A.*		1,199		123,518
Banque Centrale Populaire		3,053		70,288
Banregio Grupo Financiero SAB de CV*		18,200		104,241
Barclays Africa Group Ltd.		14,323		228,307
BBVA Banco Continental S.A.		14,986		20,285
BDO Unibank, Inc.		53,290		130,443
BIMB Holdings Bhd		20,880		23,451
BMCE Bank		376		8,521
BNK Financial Group, Inc.		8,759		131,140
BOC Hong Kong Holdings Ltd.		146,000		567,903
Canara Bank		3,605		21,474
Capitec Bank Holdings Ltd.		1,287		60,280
Central Bank of India*		12,441		20,489
Chang Hwa Commercial Bank Ltd.		187,583		114,843
China Banking Corp.		61,341		62,953


	Shares		Value
Banks – (continued)
China CITIC Bank Corp. Ltd., Class H		337,000	$	306,516
China Construction Bank Corp., Class H		2,855,300		2,781,202
China Development Financial Holding Corp.		493,000		206,047
China Everbright Bank Co., Ltd., Class H		206,000		140,059
China Merchants Bank Co., Ltd., Class H		184,399		557,873
China Minsheng Banking Corp. Ltd., Class H		242,100		355,444
Chongqing Rural Commercial Bank Co., Ltd., Class H		776,000		694,792
CIMB Group Holdings Bhd		201,511		333,824
City Union Bank Ltd.		32,330		48,051
Commercial International Bank Egypt SAE		35,389		256,580
Corp. Bank		34,080		30,557
Corpbanca S.A.		5,872,737		66,518
Credicorp Ltd.		2,600		396,630
Credit Agricole Egypt SAE		6,376		17,557
CTBC Financial Holding Co., Ltd.		537,775		419,670
DGB Financial Group, Inc.		5,977		67,743
E.Sun Financial Holding Co., Ltd.		216,444		148,414
EnTie Commercial Bank Co., Ltd.		8,000		4,375
Far Eastern International Bank		23,024		8,495
Federal Bank Ltd.		23,970		49,589
First Financial Holding Co., Ltd.		296,296		186,721
Getin Holding S.A.*		107,475		64,025
Getin Noble Bank S.A.*		68,856		34,150
Grupo Aval Acciones y Valores (Preference)		226,683		114,303
Grupo Elektra SAB de CV		1,780		46,504
Grupo Financiero Banorte SAB de CV, Class O		94,200		536,467
Grupo Financiero Inbursa SAB de CV, Class O		93,600		223,201
Grupo Financiero Santander Mexico SAB de CV, Class B		71,200		144,895
Hana Financial Group, Inc.		11,161		330,041
Harbin Bank Co., Ltd., Class H(a)		953,000		374,996

See Accompanying Notes to the Financial Statements.


102		FLEXSHARES SEMIANNUAL REPORT

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


	Shares		Value
COMMON STOCKS – (continued)
Banks – (continued)
Hong Leong Bank Bhd		17,800	$	70,370
Hong Leong Financial Group Bhd		12,700		57,768
Hua Nan Financial Holdings Co., Ltd.		228,955		140,920
Huishang Bank Corp., Ltd., Class H		46,000		24,747
ICICI Bank Ltd.		35,085		182,924
ICICI Bank Ltd. (ADR)		4,390		47,983
IDBI Bank Ltd.		16,095		18,879
Indian Bank		20,237		44,575
Industrial & Commercial Bank of China Ltd., Class H		2,935,100		2,552,211
Industrial Bank of Korea		8,877		122,556
ING Bank Slaski S.A.		989		38,912
Intercorp Financial Services, Inc.*		845		25,257
Itau Unibanco Holding S.A.		12,100		139,961
Itau Unibanco Holding S.A. (Preference)		109,680		1,411,297
Itausa – Investimentos Itau S.A.		15,481		53,839
Itausa – Investimentos Itau S.A. (Preference)		125,890		447,051
The Jammu & Kashmir Bank Ltd.		70,170		106,114
JB Financial Group Co., Ltd.		22,225		143,882
The Karur Vysya Bank Ltd.		13,817		104,767
Kasikornbank PCL (NVDR)		46,200		294,312
KB Financial Group, Inc.		16,038		612,646
Kiatnakin Bank PCL (NVDR)		115,200		129,301
King’s Town Bank Co., Ltd.		26,000		26,700
Komercni banka A/S		632		140,739
Krung Thai Bank PCL (NVDR)		144,400		87,608
Kwangju Bank*		8,338		62,224
LH Financial Group PCL (NVDR)		290,449		15,859
Malayan Banking Bhd		181,573		469,546
mBank S.A.*		582		75,211
Mega Financial Holding Co., Ltd.		381,002		339,625
Metropolitan Bank & Trust Co.		2,502		5,225
Nedbank Group Ltd.		9,266		199,004
Oriental Bank of Commerce		15,507		49,745
OTP Bank PLC		8,337		185,020


	Shares		Value
Banks – (continued)
Philippine National Bank*		10,223	$	17,781
Powszechna Kasa Oszczednosci Bank Polski S.A.		34,598		346,066
Public Bank Bhd		103,400		565,557
RHB Capital Bhd		18,667		41,407
Rizal Commercial Banking Corp.		47,280		48,522
Sberbank of Russia		443,017		660,365
Sberbank of Russia (Preference)*		50,146		48,601
Sekerbank TAS*		127,136		85,069
Shinhan Financial Group Co., Ltd.		16,672		687,409
The Siam Commercial Bank PCL (NVDR)		60,700		292,774
SinoPac Financial Holdings Co., Ltd.		314,767		142,861
Sociedad Matriz del Banco de Chile S.A., Class B		210,189		64,171
Standard Bank Group Ltd.		45,227		660,466
State Bank of India		44,500		188,993
State Bank of India (GDR)		1,914		80,866
Syndicate Bank		38,603		60,352
Ta Chong Bank Ltd.*		70,162		25,200
Taichung Commercial Bank Co., Ltd.		32,925		11,772
Taishin Financial Holding Co., Ltd.		326,945		149,989
Taiwan Business Bank*		46,467		15,324
Taiwan Cooperative Financial Holding Co., Ltd.		233,141		125,987
Thanachart Capital PCL (NVDR)		28,100		28,982
Tisco Financial Group PCL (NVDR)		28,820		39,560
TMB Bank PCL (NVDR)		608,000		47,954
Turkiye Garanti Bankasi A/S		40,505		128,852
Turkiye Garanti Bankasi A/S (ADR)		52,477		168,451
Turkiye Halk Bankasi A/S		25,455		128,933
Turkiye Is Bankasi, Class C		59,890		134,773
Turkiye Sinai Kalkinma Bankasi A/S		12,762		9,637
Turkiye Vakiflar Bankasi TAO, Class D		30,940		54,937

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			103

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


	Shares		Value
COMMON STOCKS – (continued)
Banks – (continued)
UCO Bank		15,547	$	15,433
Union Bank of India		5,963		13,500
Union Bank of Taiwan*		27,695		9,947
Union Bank of the Philippines		82,471		122,234
Vijaya Bank		86,000		61,540
VTB Bank OJSC*		141,429,052		179,563
VTB Bank OJSC (GDR)		32,047		79,605
Yapi ve Kredi Bankasi A/S		29,834		46,728
				33,518,758
Beverages – 1.3%
Ambev S.A.		182,409		1,153,190
Anadolu Efes Biracilik ve Malt Sanayii A/S*		7,183		60,414
Arca Continental SAB de CV		13,600		83,446
Carlsberg Brewery Malaysia Bhd, Class B		4,600		17,307
Cia Cervecerias Unidas S.A.		3,548		38,616
Coca-Cola Femsa SAB de CV		17,739		141,730
Coca-Cola Icecek A/S		2,912		49,365
Distell Group Ltd.		563		7,581
Embotelladora Andina S.A. (Preference), Class B		1,848		5,863
Emperador, Inc.		80,700		20,986
Fomento Economico Mexicano SAB de CV*		77,712		703,617
Fraser & Neave Holdings Bhd		6,300		32,796
Guinness Anchor Bhd		3,500		14,348
Hey Song Corp.		19,500		24,545
Hite Jinro Co., Ltd.		590		12,494
Lotte Chilsung Beverage Co., Ltd.		44		97,605
LT Group, Inc.*		162,500		54,373
Muhak Co., Ltd.*		751		25,360
Organizacion Cultiba SAB de CV		22,700		30,442
Tibet 5100 Water Resources Holdings Ltd.		131,000		50,364
Tsingtao Brewery Co., Ltd., Class H		14,000		89,135
United Breweries Ltd.		2,435		35,746
United Spirits Ltd.*		1,549		81,216


	Shares		Value
Beverages – (continued)
Vina Concha y Toro S.A.		60,860	$	124,106
Yantai Changyu Pioneer Wine Co., Ltd., Class B		20,571		95,011
				3,049,656
Biotechnology – 0.2%
Biocon Ltd.		5,764		41,078
Cell Biotech Co., Ltd.		1,000		53,918
China Biologic Products, Inc.*		400		38,256
Green Cross Corp.		214		35,334
Medigen Biotechnology Corp.*		4,099		17,734
Medy-Tox, Inc.		156		54,076
Naturalendo Tech Co., Ltd.*		704		22,394
PharmaEngine, Inc.*		2,065		18,677
Seegene, Inc.*		1,252		41,811
Taigen Biopharmaceuticals Holdings Ltd.*		16,000		14,811
Taiwan Liposome Co., Ltd.*		2,340		17,191
ViroMed Co., Ltd.*		1,391		150,519
				505,799
Building Products – 0.2%
Arwana Citramulia Tbk PT		403,500		16,187
China Lesso Group Holdings Ltd.		28,000		20,663
Dynasty Ceramic PCL (NVDR)		172,800		21,177
IS Dongseo Co., Ltd.		630		47,955
Kajaria Ceramics Ltd.		4,439		53,825
KCC Corp.		179		91,838
LG Hausys Ltd.		278		43,308
Sung Kwang Bend Co., Ltd.		5,978		87,551
Sunspring Metal Corp.		21,000		41,004
Taiwan Glass Industry Corp.		26,000		18,677
Trakya Cam Sanayii A/S		18,097		21,783
Xxentria Technology Materials Corp.		7,653		25,113
				489,081
Capital Markets – 1.1%
Administradora de Fondos de Pensiones Habitat S.A.		19,789		30,446
Brait SE*		12,065		91,374
Capital Securities Corp.		29,000		10,747
CETIP S.A. – Mercados Organizados		6,304		72,141

See Accompanying Notes to the Financial Statements.


104		FLEXSHARES SEMIANNUAL REPORT

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


	Shares		Value
COMMON STOCKS – (continued)
Capital Markets – (continued)
China Bills Finance Corp.		71,000	$	27,588
China Cinda Asset Management Co., Ltd., Class H*		177,000		105,499
China Everbright Ltd.		36,000		119,595
China Galaxy Securities Co., Ltd., Class H		48,500		79,716
Citadel Capital SAE*		87,421		26,581
CITIC Securities Co., Ltd., Class H		44,000		195,842
Coronation Fund Managers Ltd.		8,546		65,045
Daewoo Securities Co., Ltd.		9,354		147,029
Daishin Securities Co., Ltd.		4,210		55,571
Daishin Securities Co., Ltd. (Preference)		4,660		36,124
Egypt Kuwait Holding Co. SAE		27,785		18,338
Egyptian Financial Group-Hermes Holding Co.*		31,116		58,317
Grupo Financiero Interacciones S.A. de CV, Class O		9,100		57,417
Guotai Junan International Holdings Ltd.		43,600		72,112
Haitong Securities Co., Ltd., Class H		44,400		145,782
HMC Investment Securities Co., Ltd.		6,610		84,167
Hyundai Securities Co., Ltd.		6,570		68,335
Investec Ltd.		9,247		87,465
KIWOOM Securities Co., Ltd.		188		13,399
Korea Investment Holdings Co., Ltd.		2,025		130,341
Macquarie Korea Infrastructure Fund		14,065		103,782
Masterlink Securities Corp.		28,268		10,568
Meritz Securities Co., Ltd.		9,230		54,157
Mirae Asset Securities Co., Ltd.		787		43,608
NH Investment & Securities Co., Ltd.		4,706		65,629
OSK Holdings Bhd		143,500		84,613
President Securities Corp.		43,000		25,764
Religare Enterprises Ltd.*		3,905		22,410
Samsung Securities Co., Ltd.		1,948		119,024
Shinyoung Securities Co., Ltd.*		860		49,498


	Shares		Value
Capital Markets – (continued)
Waterland Financial Holdings Co., Ltd.		57,656	$	17,376
Yuanta Financial Holding Co., Ltd.		332,625		193,867
				2,589,267
Chemicals – 3.1%
Aeci Ltd.		15,224		164,869
AK Holdings, Inc.		208		16,493
Alexandria Mineral Oils Co.		958		5,902
Alpek SAB de CV		14,100		18,982
Asia Plastic Recycling Holding Ltd.		34,812		33,532
Asia Polymer Corp.		16,000		11,833
Asian Paints Ltd.		12,733		152,850
Batu Kawan Bhd		4,500		22,971
Bayer CropScience Ltd.		562		33,343
Berger Paints India Ltd.		9,474		31,421
Bloomage BioTechnology Corp. Ltd.		17,500		40,639
Braskem S.A. (Preference), Class A		13,200		54,797
Castrol India Ltd.		2,653		18,506
China BlueChemical Ltd., Class H		573,100		255,823
China Lumena New Materials Corp.* ^		888,000		—
China Man-Made Fiber Corp.*		342,000		122,837
China Petrochemical Development Corp.*		38,700		14,595
China Steel Chemical Corp.		5,000		24,326
China Synthetic Rubber Corp.		27,000		28,828
Ciech S.A.		3,128		50,823
Coromandel International Ltd.		4,734		17,128
Cydsa SAB de CV		32,200		53,705
Dongyue Group Ltd.		354,000		150,713
Eternal Materials Co., Ltd.		20,600		23,542
Everlight Chemical Industrial Corp.		46,562		42,722
Formosa Chemicals & Fibre Corp.		119,980		306,355
Formosa Plastics Corp.		157,440		405,604
Formosan Rubber Group, Inc.		22,000		23,634
Fufeng Group Ltd.		312,600		244,800

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			105

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


	Shares		Value
COMMON STOCKS – (continued)
Chemicals – (continued)
Godrej Industries Ltd.		3,377	$	19,202
Grand Pacific Petrochemical		272,000		174,962
Grupa Azoty S.A.		1,225		27,832
Gubre Fabrikalari TAS		34,735		92,838
Hansol Chemical Co., Ltd.		1,000		67,537
Hanwha Chemical Corp.		3,940		63,216
Hanwha Corp.		1,676		66,055
Ho Tung Chemical Corp.*		240,177		69,482
Huabao International Holdings Ltd.		65,000		73,209
Huchems Fine Chemical Corp.		1,440		35,597
Hyosung Corp.		1,351		149,971
Indorama Ventures PCL (NVDR)		54,200		40,611
Kolon Industries, Inc.		792		47,801
Korea Petro Chemical Ind		889		144,297
Kumho Petrochemical Co., Ltd.		490		39,401
LCY Chemical Corp.		167,000		109,603
LG Chem Ltd.		1,853		471,893
LG Chem Ltd. (Preference)		179		30,724
Lotte Chemical Corp.		639		149,617
Mexichem SAB de CV		41,000		117,281
Namhae Chemical Corp.		3,200		29,343
Nan Ya Plastics Corp.		182,010		448,696
Ocean Plastics Co., Ltd.*		22,000		27,513
OCI Co., Ltd.		660		61,382
OCI Materials Co., Ltd.		998		94,773
Omnia Holdings Ltd.		6,785		93,125
Oriental Union Chemical Corp.		18,000		16,133
Petkim Petrokimya Holding A/S		8,463		11,895
Petronas Chemicals Group Bhd		106,400		175,367
Phosagro OAO*		3,124		123,168
PhosAgro OAO (GDR)		8,397		102,863
PI Industries Ltd.		6,000		62,182
Pidilite Industries Ltd.		3,715		33,167
PTT Global Chemical PCL (NVDR)		72,800		141,890
Samsung Fine Chemicals Co., Ltd.		2,337		94,941
San Fang Chemical Industry Co., Ltd.		50,669		92,153
Scientex Bhd		32,500		60,684
Shinkong Synthetic Fibers Corp.		85,000		30,946


	Shares		Value
Chemicals – (continued)
Sidi Kerir Petrochemicals Co.		5,418	$	10,481
Sinofert Holdings Ltd.*		321,700		88,818
Sinopec Shanghai Petrochemical Co., Ltd., Class H		372,000		225,087
SK Chemicals Co., Ltd.		593		38,556
SKC Co., Ltd.		952		37,654
Sociedad Quimica y Minera de Chile S.A. (Preference), Class B		4,339		95,149
Solar Applied Materials Technology Co.		78,000		68,510
Soulbrain Co., Ltd.		3,006		116,090
Supreme Industries Ltd.		1,939		20,846
Swancor Ind Co., Ltd.		7,338		59,660
Synthos S.A.*		18,496		24,189
Taekwang Industrial Co., Ltd.		18		20,166
Taiwan Fertilizer Co., Ltd.		26,000		47,881
TSRC Corp.		18,900		21,815
Unid Co., Ltd.		888		53,512
UPC Technology Corp.		231,000		91,266
UPL Ltd.		4,887		37,752
Uralkali PJSC*		33,585		98,334
Uralkali PJSC (GDR)		3,864		57,226
USI Corp.		16,000		8,646
Yingde Gases Group Co., Ltd.		32,000		28,032
Yung Chi Paint & Varnish Manufacturing Co., Ltd.		12,000		35,186
				7,347,779
Commercial Services & Supplies – 0.2%
China Everbright International Ltd.		100,000		187,327
Cleanaway Co., Ltd.		1,000		6,204
Eastern Media International Corp.		116,000		40,338
KD Holding Corp.		3,000		17,240
KEPCO Plant Service & Engineering Co., Ltd.		386		35,035
KRUK S.A.*		1,838		78,020
S-1 Corp.		596		44,533
Taiwan Secom Co., Ltd.		11,165		33,613
Taiwan Sogo Shin Kong SEC		24,240		32,688
YC Co., Ltd.		38,428		18,884
				493,882

See Accompanying Notes to the Financial Statements.


106		FLEXSHARES SEMIANNUAL REPORT

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


	Shares		Value
COMMON STOCKS – (continued)
Communications Equipment – 0.3%
Accton Technology Corp.		138,000	$	71,870
Advanced Ceramic X Corp.		4,000		19,722
Alpha Networks, Inc.		117,000		87,867
BYD Electronic International Co., Ltd.		43,000		64,907
China All Access Holdings Ltd.		198,000		69,481
CyberTAN Technology, Inc.		26,000		20,587
D-Link Corp.		65,280		33,891
Gemtek Technology Corp.		63,000		46,798
Sercomm Corp.		10,000		22,432
Unizyx Holding Corp.		136,000		71,939
Wistron NeWeb Corp.		7,861		20,919
Zinwell Corp.		79,000		77,256
ZTE Corp., Class H		21,400		72,197
				679,866
Construction & Engineering – 1.9%
Aveng Ltd.*		130,163		116,488
BES Engineering Corp.		227,000		55,886
Budimex S.A.		1,240		60,469
CH Karnchang PCL (NVDR)		42,637		32,658
China Communications Construction Co., Ltd., Class H		178,000		325,634
China Machinery Engineering Corp., Class H		223,200		297,172
China Railway Construction Corp. Ltd., Class H		78,000		156,178
China Railway Group Ltd., Class H		158,000		222,594
China Singyes Solar Technologies Holdings Ltd.*		27,000		44,378
China State Construction International Holdings Ltd.		60,000		115,957
Chung Hsin Electric & Machinery Manufacturing Corp.		24,500		17,639
Concord New Energy Group Ltd.*		1,300,000		105,662
Continental Holdings Corp.		59,850		21,790
CTCI Corp.		18,000		31,679
Daelim Industrial Co., Ltd.		1,278		98,950
Daewoo Engineering & Construction Co., Ltd.*		2,670		17,758


	Shares		Value
Construction & Engineering – (continued)
Dialog Group Bhd		129,788	$	59,036
Engineers India Ltd.		7,896		22,818
Gamuda Bhd		81,000		118,947
GMR Infrastructure Ltd.		95,787		22,244
Grana y Montero SAA		47,566		76,867
GS Engineering & Construction Corp.*		2,060		61,973
Hyundai Development Co-Engineering & Construction		2,030		108,507
Hyundai Engineering & Construction Co., Ltd.		2,996		145,049
IJM Corp. Bhd		68,100		140,158
Impulsora del Desarrollo y El Empleo en America Latina SAB de CV*		32,349		71,202
IRB Infrastructure Developers Ltd.		14,927		54,864
Italian-Thai Development PCL (NVDR)*		135,443		31,226
KEPCO Engineering & Construction Co., Inc.		146		5,679
Kumho Industrial Co., Ltd.*		1,866		33,943
Kuo Toong International Co., Ltd.		19,000		32,260
Larsen & Toubro Ltd.		2,313		59,394
Larsen & Toubro Ltd. (GDR)		6,664		170,265
Malaysia Marine and Heavy Engineering Holdings Bhd		4,800		1,644
Malaysian Resources Corp. Bhd		153,100		56,744
Metallurgical Corp. of China Ltd., Class H		902,000		534,138
Murray & Roberts Holdings Ltd.		127,114		139,807
Pembangunan Perumahan Persero Tbk PT*		221,700		67,130
Promotora y Operadora de Infraestructura SAB de CV*		9,400		107,941
Rich Development Co., Ltd.		151,467		65,283
Samsung Engineering Co., Ltd.*		784		28,413
Sinopec Engineering Group Co., Ltd., Class H		51,500		55,745
Sino-Thai Engineering & Construction PCL (NVDR)		41,571		26,356
Taeyoung Engineering & Construction Co., Ltd.*		7,920		44,328
Tekfen Holding A/S*		37,997		71,018
TTCL PCL (NVDR)		26,100		25,336

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			107

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


	Shares		Value
COMMON STOCKS – (continued)
Construction & Engineering – (continued)
Voltas Ltd.		11,827	$	52,343
Waskita Karya Persero Tbk PT* ^		257,500		34,168
WCT Holdings Bhd		95,551		49,097
Wijaya Karya Persero Tbk PT		122,000		28,094
Wilson Bayly Holmes-Ovcon Ltd.		12,554		116,918
				4,439,827
Construction Materials – 1.7%
ACC Ltd.		1,496		33,769
Akcansa Cimento A/S		3,896		23,957
Ambuja Cements Ltd.		27,252		99,715
Anhui Conch Cement Co., Ltd., Class H		49,000		199,132
Asia Cement China Holdings Corp.*		154,000		88,810
Asia Cement Corp.		92,020		116,580
BBMG Corp., Class H		347,000		430,664
Cementos Argos S.A.		17,080		68,899
Cementos Argos S.A. (Preference)		5,307		19,948
Cemex Latam Holdings S.A.*		9,876		54,738
Cemex SAB de CV*		471,728		454,503
CHC Resources Corp.		6,000		16,319
Chia Hsin Cement Corp.		31,000		14,373
China National Building Material Co., Ltd., Class H		102,000		124,224
China Resources Cement Holdings Ltd.		60,170		38,425
China Shanshui Cement Group Ltd.^		541,000		439,017
Cimsa Cimento Sanayi ve Ticaret A/S		3,966		24,314
CSG Holding Co., Ltd., Class B		258,700		309,393
Goldsun Development & Construction Co., Ltd.		84,000		28,662
Grupo Argos S.A.		13,974		112,158
Grupo Argos S.A. (Preference)		6,306		49,877
Hanil Cement Co., Ltd.		160		22,463
Holcim Indonesia Tbk PT		21,500		2,571
Huaxin Cement Co., Ltd., Class B		85,302		113,196
Indocement Tunggal Prakarsa Tbk PT		54,100		87,645


	Shares		Value
Construction Materials – (continued)
Konya Cimento Sanayii A/S		54	$	6,137
Lafarge Malaysia Bhd		9,800		26,553
Nuh Cimento Sanayi A/S		12,646		49,636
PPC Ltd.		19,288		27,457
The Ramco Cements Ltd.		4,924		23,750
Semen Indonesia Persero Tbk PT		112,500		108,486
Shree Cement Ltd.		241		38,676
The Siam Cement PCL (NVDR)		12,000		195,844
Siam City Cement PCL (NVDR)		3,700		41,192
Southeast Cement Co., Ltd.		46,000		26,360
Ssangyong Cement Industrial Co., Ltd.*		6,601		103,756
Taiwan Cement Corp.		133,000		189,342
TCC International Holdings Ltd.		18,100		7,659
TPI Polene PCL (NVDR)		377,200		33,183
Ultratech Cement Ltd.		1,101		46,320
Union Andina de Cementos SAA		72,058		56,493
Universal Cement Corp.		24,480		26,178
				3,980,374
Consumer Finance – 0.3%
AEON Credit Service M Bhd		2,300		9,596
AEON Thana Sinsap Thailand PCL (NVDR)		26,500		81,192
Bajaj Finance Ltd.		679		43,235
Credit China Holdings Ltd.		196,000		46,780
Gentera SAB de CV*		50,368		85,876
KB Capital Co., Ltd.		3,052		63,773
Mahindra & Mahindra Financial Services Ltd.		9,206		38,794
Muthoot Finance Ltd.		21,567		62,309
Samsung Card Co., Ltd.		1,569		60,155
Shriram Transport Finance Co., Ltd.		4,426		67,583
SKS Microfinance Ltd.*		11,591		85,781
Srisawad Power 1979 PCL (NVDR)		53,040		67,175
Taiwan Acceptance Corp.		11,000		29,632
				741,881
Containers & Packaging – 0.4%
Cheng Loong Corp.		275,000		119,425
CPMC Holdings Ltd.		149,000		115,722

See Accompanying Notes to the Financial Statements.


108		FLEXSHARES SEMIANNUAL REPORT

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


	Shares		Value
COMMON STOCKS – (continued)
Containers & Packaging – (continued)
Great China Metal Industry		73,000	$	80,089
Greatview Aseptic Packaging
Co., Ltd.		143,000		86,341
Klabin S.A.		17,600		108,568
Klabin S.A. (Preference)		75,900		92,627
Lock & Lock Co., Ltd.		1,890		22,832
Nampak Ltd.		24,426		87,132
Sansung Life & Science Co., Ltd.*		1,054		81,508
Taiwan Hon Chuan Enterprise Co., Ltd.		91,160		169,961
Vitro SAB de CV*		22,900		49,897
				1,014,102
Distributors – 0.2%
Dah Chong Hong Holdings Ltd.		238,000		148,920
Dogus Otomotiv Servis ve Ticaret A/S		16,516		80,260
GOLFZONYUWONHOLDINGS Co., Ltd.		1,027		12,694
Imperial Holdings Ltd.		6,875		114,710
Inter Cars S.A.		820		58,585
Test Rite International Co., Ltd.		23,000		15,733
				430,902
Diversified Consumer Services – 0.2%
Abril Educacao S.A.*		2,700		11,101
Daekyo Co., Ltd.		4,590		37,251
Estacio Participacoes S.A.		10,900		64,948
Fu Shou Yuan International Group Ltd.		51,000		27,371
Kroton Educacional S.A.		55,552		204,867
Lung Yen Life Service Corp.		5,000		13,322
MegaStudy Co., Ltd.^		1,455		91,752
Ser Educacional S.A.		4,200		19,620
				470,232
Diversified Financial Services – 1.8%
African Bank Investments Ltd.* ^		61,875		1,604
Alexander Forbes Group Holdings Ltd.*		79,088		65,156
Ayala Corp.		7,950		139,254


	Shares		Value
Diversified Financial Services – (continued)
BM&FBovespa S.A. – Bolsa de Valores Mercadorias e Futuros		73,700	$	303,494
Bolsa Mexicana de Valores SAB de CV		38,500		73,963
Bursa Malaysia Bhd		3,200		7,853
Chailease Holding Co., Ltd.		28,600		78,537
Corp. Financiera Colombiana S.A.		7,367		115,740
Far East Horizon Ltd.		73,000		77,416
FirstRand Ltd.		122,360		581,602
Fubon Financial Holding Co., Ltd.		257,000		554,682
Grupo BTG Pactual		10,000		99,198
Grupo de Inversiones Suramericana S.A.		10,791		167,825
Grupo de Inversiones Suramericana S.A. (Preference)		4,194		64,492
GT Capital Holdings, Inc.		2,600		73,335
Haci Omer Sabanci Holding A/S		33,767		123,322
Hankook Tire Worldwide Co., Ltd.		130		2,577
IFCI Ltd.		163,299		86,258
Inversiones La Construccion S.A.		2,984		38,199
JSE Ltd.		8,898		99,041
L&T Finance Holdings Ltd.		12,753		12,660
Meritz Financial Group, Inc.		2,333		29,924
Metro Pacific Investments Corp.		336,600		34,242
Moscow Exchange MICEX-RTS OAO		414,624		618,846
NICE Holdings Co., Ltd.*		4,780		88,064
Power Finance Corp. Ltd.		12,264		51,294
Premium Leisure Corp.		941,000		34,445
PSG Group Ltd.		3,057		49,897
Reliance Capital Ltd.		5,803		36,897
Remgro Ltd.		18,262		404,307
RMB Holdings Ltd.		27,015		162,052
Rural Electrification Corp. Ltd.		13,258		65,032
Warsaw Stock Exchange		3,751		51,030
				4,392,238

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			109

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


	Shares		Value
COMMON STOCKS – (continued)
Diversified Telecommunication Services – 1.5%
Alibaba Health Information
Technology Ltd.*		100,000	$	154,816
APT Satellite Holdings Ltd.		30,500		47,848
Asia Pacific Telecom Co., Ltd.		67,899		29,265
Asia Satellite Telecommunications Holdings Ltd.		4,000		14,140
China Communications Services Corp. Ltd., Class H		772,000		436,240
China Telecom Corp. Ltd., Class H		544,000		404,957
China Unicom Hong Kong Ltd.*		224,000		420,769
Chunghwa Telecom Co., Ltd.		144,000		465,487
CITIC Telecom International Holdings Ltd.		20,625		8,515
Jasmine International PCL (NVDR)		133,100		22,207
KT Corp.*		2,684		79,744
LG Uplus Corp.		9,317		93,431
Maroc Telecom		5,994		79,588
Netia S.A.		35,576		58,059
O2 Czech Republic A/S		8,677		71,144
Oi S.A.*		8,101		15,262
Oi S.A. (Preference)*		9,110		17,314
Orange Polska S.A.		30,455		86,072
Rostelecom OJSC		26,056		40,026
Rostelecom OJSC (ADR)		933		8,779
Rostelecom OJSC (Preference)*		29,982		34,149
SK Broadband Co., Ltd.*		2,669		11,938
Tata Communications Ltd.		5,003		34,300
Telecom Egypt Co.		12,996		16,811
Telefonica Brasil S.A.		500		6,982
Telefonica Brasil S.A. (Preference)		11,800		194,565
Telekom Malaysia Bhd		42,688		88,816
Telekomunikasi Indonesia Persero Tbk PT		1,827,500		368,672
Telkom S.A. SOC Ltd.*		10,533		72,239
Thaicom PCL (NVDR)		21,800		24,303
TIME dotCom Bhd		39,486		67,630
True Corp. PCL (NVDR)*		347,216		128,501
Turk Telekomunikasyon A/S		16,390		45,277


	Shares		Value
Diversified Telecommunication Services – (continued)
XL Axiata Tbk PT		87,000	$	27,082
				3,674,928
Electric Utilities – 1.7%
Centrais Eletricas Brasileiras S.A.		8,800		21,361
Centrais Eletricas Brasileiras S.A. (Preference), Class B		7,400		21,615
CESC Ltd.		3,856		33,263
CEZ A/S		6,020		156,291
Cia de Transmissao de Energia Eletrica Paulista (Preference)		4,339		60,071
Cia Energetica de Minas Gerais		1,577		7,698
Cia Energetica de Minas Gerais (Preference)		33,571		162,871
Cia Energetica do Ceara (Preference), Class A		4,459		63,264
Cia Paranaense de Energia		200		1,478
Cia Paranaense de Energia (Preference)		4,500		49,651
CPFL Energia S.A.		8,668		56,562
E.CL S.A.		50,932		82,856
EDP – Energias do Brasil S.A.		74,690		279,927
Enea S.A.		11,420		51,577
Energa S.A.		10,669		73,933
Enersis S.A.		801,862		280,100
Equatorial Energia S.A.		16,829		178,051
First Philippine Holdings Corp.		55,880		116,453
Inter Rao UES JSC*		1,363,924		31,985
Inter RAO UES JSC*		2,690,680		63,098
Interconexion Electrica S.A. ESP		46,544		159,049
Isagen S.A. ESP		81,730		110,522
Korea Electric Power Corp.		10,412		455,039
Light S.A.		22,800		130,609
Luz del Sur SAA		7,464		25,485
Manila Electric Co.		13,100		76,605
PGE Polska Grupa Energetyczna S.A.		30,538		175,574
Reliance Infrastructure Ltd.		4,824		31,482
RusHydro JSC*		34,537,358		400,673
RusHydro JSC (ADR)		8,452		10,227
Tata Power Co., Ltd.		39,352		46,963

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)
Electric Utilities – (continued)
Tauron Polska Energia S.A.		53,289	$	71,168
Tenaga Nasional Bhd		110,600		445,940
Torrent Power Ltd.		14,274		37,104
Transmissora Alianca de Energia Eletrica S.A.		11,000		72,660
Zespol Elektrowni Patnow Adamow Konin S.A.		8,319		56,012
				4,097,217
Electrical Equipment – 0.8%
ABB India Ltd.		1,456		30,623
AcBel Polytech, Inc.		31,000		30,569
Alstom T&D India Ltd.		2,883		23,569
Amara Raja Batteries Ltd.		2,733		34,200
Bharat Heavy Electricals Ltd.		23,410		87,739
Bizlink Holding, Inc.		8,599		37,062
Boer Power Holdings Ltd.		28,000		54,113
China High Speed Transmission Equipment Group Co., Ltd.*		104,000		94,190
Crompton Greaves Ltd.		12,473		33,129
Dongfang Electric Corp. Ltd., Class H		113,800		258,985
Doosan Heavy Industries & Construction Co., Ltd.		2,034		57,870
ElSwedy Electric Co.*		3,080		19,122
Havells India Ltd.		11,245		49,537
Iljin Holdings Co., Ltd.		8,000		49,776
Jiangnan Group Ltd.		260,000		83,523
Korea Electric Terminal Co., Ltd.		1,809		123,525
LS Corp.		968		48,851
LS Industrial Systems Co., Ltd.		1,013		55,942
Shanghai Electric Group Co., Ltd., Class H		104,000		106,266
Shihlin Electric & Engineering Corp.		26,000		35,189
Suzlon Energy Ltd.*		368,804		138,196
Tech Pro Technology Development Ltd.*		119,600		97,209
Teco Electric and Machinery Co., Ltd.		83,000		80,897
Voltronic Power Technology Corp.		1,200		14,948


	Shares		Value
Electrical Equipment – (continued)
Walsin Lihwa Corp.*		76,000	$	22,458
Xinjiang Goldwind Science & Technology Co., Ltd., Class H		52,000		121,159
Zhuzhou CSR Times Electric Co., Ltd., Class H		21,000		179,625
				1,968,272
Electronic Equipment, Instruments & Components – 3.3%
AAC Technologies Holdings, Inc.		32,000		169,884
Asia Optical Co., Inc.*		32,000		39,757
AU Optronics Corp.		353,000		178,079
BenQ Materials Corp.		55,000		51,990
Career Technology MFG. Co., Ltd.		102,000		101,747
Cheng Uei Precision Industry Co., Ltd.		11,000		21,694
Chimei Materials Technology Corp.		4,950		5,342
Chin-Poon Industrial Co., Ltd.		12,000		23,118
Chroma ATE, Inc.		13,000		31,411
Compeq Manufacturing Co., Ltd.		76,000		48,266
Coretronic Corp.		18,000		24,509
Daeduck Electronics Co.		13,257		117,606
DataTec Ltd.		60,452		312,470
Delta Electronics Thailand PCL (NVDR)		21,000		53,193
Delta Electronics, Inc.		71,000		428,884
Digital China Holdings Ltd.		253,000		392,337
Dynapack International Technology Corp.		12,000		29,191
E Ink Holdings, Inc.*		19,000		8,654
Elite Material Co., Ltd.		83,000		138,758
Eson Precision Ind Co., Ltd.		13,650		18,251
Firich Enterprises Co., Ltd.		5,716		20,624
FLEXium Interconnect, Inc.		68,163		242,597
Flytech Technology Co., Ltd.		8,799		36,631
Genius Electronic Optical Co., Ltd.*		9,178		26,312
GeoVision, Inc.		5,500		19,216
Hana Microelectronics PCL (NVDR)		62,900		84,910
HannStar Display Corp.		105,925		21,444
HannsTouch Solution, Inc.*		69,000		14,081

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)
Electronic Equipment, Instruments & Components – (continued)
Hollysys Automation Technologies Ltd.		1,700	$	37,349
Holy Stone Enterprise Co., Ltd.		59,200		84,665
Hon Hai Precision Industry Co., Ltd.		488,380		1,467,085
Ichia Technologies, Inc.		33,000		28,123
Innolux Corp.		289,489		150,293
ITEQ Corp.		90,000		74,936
Jentech Precision Industrial Co., Ltd.		7,000		15,382
Ju Teng International Holdings Ltd.		240,000		150,791
KCE Electronics PCL (NVDR)		22,300		36,530
KH Vatec Co., Ltd.		4,521		91,727
Kingboard Chemical Holdings Ltd.		5,800		10,596
Kingboard Laminates Holdings Ltd.		321,000		165,239
Largan Precision Co., Ltd.		4,000		402,273
LG Display Co., Ltd.		9,280		258,403
LG Innotek Co., Ltd.		507		47,295
Lotes Co., Ltd.		7,000		29,028
Lumax International Corp. Ltd.		4,000		8,150
Merry Electronics Co., Ltd.		6,300		14,502
MIN AIK Technology Co., Ltd.		6,000		22,530
Nan Ya Printed Circuit Board Corp.		3,000		5,358
Pan-International Industrial Corp.		39,396		24,055
Partron Co., Ltd.		11,823		124,627
PAX Global Technology Ltd.*		75,000		109,339
Posiflex Technologies, Inc.		6,030		32,782
Redington India Ltd.		25,145		47,250
Samart Corp. PCL (NVDR)		49,200		44,775
Samsung Electro-Mechanics Co., Ltd.		2,380		149,860
Samsung SDI Co., Ltd.		1,878		210,224
SFA Engineering Corp.		909		43,584
Simplo Technology Co., Ltd.		13,000		64,733
Sinbon Electronics Co., Ltd.		59,000		103,644
Sunny Optical Technology Group Co., Ltd.		33,000		73,909


	Shares		Value
Electronic Equipment, Instruments & Components – (continued)
Suprema, Inc.*		2,000	$	43,377
Synnex Technology International Corp.		50,000		71,018
Taiflex Scientific Co., Ltd.		56,000		83,746
Taiwan PCB Techvest Co., Ltd.		90,662		148,015
Test Research, Inc.		20,280		41,320
Tong Hsing Electronic Industries Ltd.		4,000		12,852
Tongda Group Holdings Ltd.		330,000		59,178
TPK Holding Co., Ltd.		4,000		24,946
Tripod Technology Corp.		18,000		35,264
TXC Corp.		88,000		114,648
Unimicron Technology Corp.		45,000		26,889
Vivotek, Inc.		4,138		12,403
Wah Lee Industrial Corp.		64,000		119,950
Wasion Group Holdings Ltd.		73,100		115,622
Wintek Corp.* ^		64,000		3,824
WPG Holdings Ltd.		43,000		53,915
WT Microelectronics Co., Ltd.		30,087		47,450
Yageo Corp.		30,256		62,436
Zhen Ding Technology Holding Ltd.		3,150		11,005
				7,877,851
Energy Equipment & Services – 0.2%
Bumi Armada Bhd		70,200		23,456
China Oilfield Services Ltd., Class H		72,000		148,623
Dayang Enterprise Holdings Bhd		26,400		19,495
Honghua Group Ltd.		301,000		41,551
Perisai Petroleum Teknologi Bhd*		109,700		16,941
SapuraKencana Petroleum Bhd		150,000		112,032
Scomi Energy Services Bhd*		42,000		5,307
UMW Oil & Gas Corp. Bhd		35,300		21,706
Wah Seong Corp. Bhd		27,782		10,297
				399,408
Food & Staples Retailing – 1.5%
Almacenes Exito S.A.		7,064		76,361
Big C Supercenter PCL (NVDR)		11,200		75,425
BIM Birlesik Magazalar A/S		8,982		166,200
Cencosud S.A.		46,303		119,970

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)
Food & Staples Retailing – (continued)
China Resources Enterprise Ltd.		48,000	$	147,385
Cia Brasileira de Distribuicao (Preference)		6,102		205,499
Clicks Group Ltd.		10,495		80,133
Controladora Comercial Mexicana SAB de CV		48,700		156,617
Cosco Capital, Inc.		166,100		30,624
CP ALL PCL (NVDR)		177,320		225,920
Dongsuh Co., Inc.		1,121		34,718
E-Mart Co., Ltd.		832		171,910
Eurocash S.A.		2,904		29,441
Grupo Comercial Chedraui S.A. de CV		9,800		29,373
GS Retail Co., Ltd.		360		13,030
Hyundai Greenfood Co., Ltd.		930		16,440
Magnit OJSC		2,082		455,226
Massmart Holdings Ltd.		2,232		28,004
Matahari Putra Prima Tbk PT		95,800		29,267
Migros Ticaret A/S*		852		6,816
Organizacion Soriana SAB de CV, Class B		6,900		16,791
Pick’n Pay Holdings Ltd.		32,123		69,183
Pick’n Pay Stores Ltd.		14,390		68,724
President Chain Store Corp.		23,000		170,476
Puregold Price Club, Inc.		47,000		41,902
Raia Drogasil S.A.		9,400		106,661
Robinsons Retail Holdings, Inc.		20,030		39,133
Shoprite Holdings Ltd.		18,184		258,856
The SPAR Group Ltd.		8,157		130,308
Sun Art Retail Group Ltd.		94,500		97,412
Taiwan TEA Corp.		72,000		41,024
Wal-Mart de Mexico SAB de CV		211,400		498,743
				3,637,572
Food Products – 2.7%
Alicorp SAA*		20,193		39,094
Astra Agro Lestari Tbk PT		14,000		21,979
AVI Ltd.		11,978		81,819
Binggrae Co., Ltd.		468		37,501
Biostime International Holdings Ltd.		6,500		29,854


	Shares		Value
Food Products – (continued)
BRF S.A.		26,600	$	572,879
Britannia Industries Ltd.		1,101		38,099
Charoen Pokphand Foods PCL (NVDR)		98,400		66,565
Charoen Pokphand Indonesia Tbk PT		332,000		72,611
China Agri-Industries Holdings Ltd.		59,705		34,123
China Foods Ltd.*		10,789		8,087
China Huishan Dairy Holdings Co., Ltd.		222,000		47,544
China Huiyuan Juice Group Ltd.*		100,500		39,286
China Mengniu Dairy Co., Ltd.		52,000		263,316
China Modern Dairy Holdings Ltd.*		66,000		26,907
China Yurun Food Group Ltd.*		132,000		45,810
CJ CheilJedang Corp.		358		139,760
Daesang Corp.		945		40,991
Dongwon F&B Co., Ltd.		79		25,940
Dongwon Industries Co., Ltd.		73		21,314
Dutch Lady Milk Industries Bhd		2,600		34,749
Felda Global Ventures Holdings Bhd		49,300		28,654
Genting Plantations Bhd		7,400		20,591
GFPT PCL (NVDR)		79,000		28,278
Great Wall Enterprise Co., Ltd.		33,800		27,591
Gruma SAB de CV, Class B		6,400		77,075
Grupo Bimbo SAB de CV*		70,700		189,627
Grupo Lala SAB de CV		30,900		62,500
Grupo Nutresa S.A.		9,240		95,879
Hap Seng Plantations Holdings Bhd		22,200		16,207
Ichitan Group PCL (NVDR)		72,000		48,269
IJM Plantations Bhd		26,800		26,337
Illovo Sugar Ltd.		72,593		130,904
Indofood CBP Sukses Makmur Tbk PT		37,500		38,187
Indofood Sukses Makmur Tbk PT		202,000		105,188
Industrias Bachoco SAB de CV*		7,300		32,572
IOI Corp. Bhd		114,100		139,041
Japfa Comfeed Indonesia Tbk PT		146,000		6,195

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)
Food Products – (continued)
JBS S.A.		28,700	$	146,991
Juhayna Food Industries		19,333		23,615
Keck Seng Malaysia Bhd		13,100		20,304
Kernel Holding S.A.		16,597		160,263
Khon Kaen Sugar Industry PCL (NVDR)		248,640		36,657
Kuala Lumpur Kepong Bhd		19,200		119,356
Kulim Malaysia Bhd		10,300		7,519
Lien Hwa Industrial Corp.		47,000		32,458
Lotte Confectionery Co., Ltd.		26		45,233
Lotte Food Co., Ltd.		68		48,209
M Dias Branco S.A.		1,300		37,192
Maeil Dairy Industry Co., Ltd.		546		22,512
Marfrig Global Foods S.A.*		28,600		39,099
Mayora Indah Tbk PT		19,417		38,235
Namchow Chemical Industrial Co., Ltd.		11,000		24,496
Nestle India Ltd.		1,015		105,033
Nestle Malaysia Bhd		2,200		45,773
Nippon Indosari Corpindo Tbk PT		135,000		11,873
Nong Shim Holdings Co., Ltd.*		536		55,250
NongShim Co., Ltd.		87		19,883
Oceana Group Ltd.		5,071		45,094
Orion Corp.		148		172,989
Ottogi Corp.		59		38,746
Perusahaan Perkebunan London Sumatra Indonesia Tbk PT		325,700		35,805
Pioneer Foods Ltd.		6,970		108,519
PPB Group Bhd		19,700		84,851
QL Resources Bhd		38,100		42,684
RCL Foods Ltd.		21,615		31,728
Salim Ivomas Pratama Tbk PT		1,522,300		75,161
Samlip General Foods Co., Ltd.		181		43,730
Samyang Holdings Corp.		1,064		101,239
Sao Martinho S.A.		4,800		60,755
Sarawak Oil Palms Bhd		9,200		12,787
Shenguan Holdings Group Ltd.		414,000		130,324
Standard Foods Corp.		10,627		26,371
Tata Global Beverages Ltd.		18,149		40,604
Tenwow International Holdings Ltd.		213,000		78,043


	Shares		Value
Food Products – (continued)
Thai Union Frozen Products PCL (NVDR)		83,600	$	51,735
Thai Vegetable Oil PCL (NVDR)		136,470		90,663
Tiga Pilar Sejahtera Food Tbk		204,600		27,780
Tiger Brands Ltd.		6,255		162,180
Tingyi Cayman Islands Holding Corp.		78,000		164,832
Tongaat Hulett Ltd.		4,353		48,233
TSH Resources Bhd		31,050		19,703
Ulker Biskuvi Sanayi A/S		4,632		35,409
Uni-President China Holdings Ltd.		64,000		51,770
Uni-President Enterprises Corp.		173,078		284,263
United Plantations Bhd		2,500		18,181
Universal Robina Corp.		37,970		185,714
Want Want China Holdings Ltd.		246,600		270,743
Wei Chuan Foods Corp.		14,000		10,994
YuanShengTai Dairy Farm Ltd.*		882,000		122,893
				6,475,797
Forest Products & Paper – 0.0%^†
Nirvikara Paper Mills Ltd.* ^		546		410
Gas Utilities – 0.6%
Aygaz A/S		2,804		10,272
China Gas Holdings Ltd.		75,640		134,082
China Oil & Gas Group Ltd.		420,000		59,062
China Resources Gas Group Ltd.		32,000		111,467
China Tian Lun Gas Holdings Ltd.*		34,500		34,940
E1 Corp.		746		49,687
Empresa de Energia de Bogota S.A. ESP		40,772		29,139
ENN Energy Holdings Ltd.		32,000		231,191
GAIL India Ltd.		13,346		75,708
Gas Malaysia Bhd		37,600		28,188
Great Taipei Gas Co., Ltd.		31,000		24,192
Gujarat Gas Co., Ltd.*		4,000		44,739
Gujarat State Petronet Ltd.		21,707		41,046
Indraprastha Gas Ltd.		4,015		26,028
Infraestructura Energetica Nova SAB de CV		6,400		37,198
Korea District Heating Corp.		801		48,194
Korea Gas Corp.		1,087		46,999
KyungDong City Gas Co., Ltd.*		609		67,604

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)
Gas Utilities – (continued)
Perusahaan Gas Negara Persero Tbk PT		408,900	$	129,334
Petronas Gas Bhd		22,800		145,449
Samchully Co., Ltd.		758		90,861
Towngas China Co., Ltd.		28,000		30,091
Zhongyu Gas Holdings Ltd.*		92,000		26,468
				1,521,939
Health Care Equipment & Supplies – 0.2%
Ginko International Co., Ltd.		1,000		14,693
Hartalega Holdings Bhd		4,700		10,769
InBody Co., Ltd.		1,000		29,851
i-SENS, Inc.*		628		28,998
Kossan Rubber Industries		27,300		45,992
Lifetech Scientific Corp.*		128,000		23,780
Microlife Corp.		8,000		18,755
Microport Scientific Corp.*		37,000		20,717
Osstem Implant Co., Ltd.*		1,800		78,750
PW Medtech Group Ltd.*		62,000		26,636
Shandong Weigao Group
Medical Polymer Co., Ltd., Class H		64,000		59,284
St. Shine Optical Co., Ltd.		2,000		35,460
Suheung Co., Ltd.		550		20,984
Supermax Corp. Bhd		39,500		22,403
Top Glove Corp. Bhd		29,400		46,228
				483,300
Health Care Providers & Services – 0.8%
Apollo Hospitals Enterprise Ltd.		3,324		59,512
Bangkok Chain Hospital PCL (NVDR)		88,000		21,890
Bangkok Dusit Medical Services PCL (NVDR)		122,400		75,003
Banmedica S.A.*		38,954		82,123
Bumrungrad Hospital PCL (NVDR)		12,200		59,399
Chabiotech Co., Ltd.*		5,399		82,849
CHC Healthcare Group		13,000		26,063
China Pioneer Pharma Holdings Ltd.		46,000		35,786
Diagnosticos da America S.A.		7,800		25,748


	Shares		Value
Health Care Providers & Services – (continued)
Fortis Healthcare Ltd.*		9,651	$	23,522
IHH Healthcare Bhd		102,800		170,876
Jintian Pharmaceutical Group Ltd.		257,000		137,267
KPJ Healthcare Bhd		25,006		29,910
Life Healthcare Group Holdings Ltd.		36,977		126,214
Mediclinic International Ltd.		16,556		174,669
Medipost Co., Ltd.*		802		66,434
Netcare Ltd.		38,388		133,791
Odontoprev S.A.		28,200		99,390
Qualicorp S.A.*		8,094		65,609
Selcuk Ecza Deposu Ticaret ve Sanayi A/S		59,330		61,655
Shanghai Pharmaceuticals Holding Co., Ltd., Class H		30,900		96,473
Siloam International Hospitals Tbk PT*		22,800		24,977
Sinopharm Group Co., Ltd., Class H		50,400		239,934
				1,919,094
Hotels, Restaurants & Leisure – 0.9%
Ajisen China Holdings Ltd.		63,000		39,176
Alsea SAB de CV*		52,600		157,757
The Ambassador Hotel		24,000		22,334
AmRest Holdings SE*		1,235		44,810
Berjaya Sports Toto Bhd		22,783		20,854
Bloomberry Resorts Corp.		166,100		41,777
Central Plaza Hotel PCL		1,600		1,626
Central Plaza Hotel PCL (NVDR)		33,100		33,637
China LotSynergy Holdings Ltd.		880,000		86,284
China Travel International Investment Hong Kong Ltd.		150,200		67,047
Famous Brands Ltd.		6,936		70,775
Formosa International Hotels Corp.		1,210		12,939
Genting Bhd		86,000		211,287
Genting Malaysia Bhd		115,600		139,571
Gourmet Master Co., Ltd.		2,000		8,555
Grand Korea Leisure Co., Ltd.		1,040		37,399
Haichang Holdings Ltd.(a)*		134,000		31,118
Hana Tour Service, Inc.		1,066		126,786

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)
Hotels, Restaurants & Leisure – (continued)
Indian Hotels Co., Ltd.*		40,334	$	69,345
Jollibee Foods Corp.		16,350		73,067
Jubilant Foodworks Ltd.*		3,345		78,534
Kangwon Land, Inc.		3,960		135,386
Magnum Bhd		12,300		9,428
Melco Crown Philippines Resorts Corp.*		173,100		35,296
Minor International PCL (NVDR)		66,550		66,621
Orbis S.A.		1,808		27,578
Paradise Co., Ltd.		1,338		31,141
REXLot Holdings Ltd.		2,446,986		183,102
Shangri-La Hotels Malaysia Bhd		10,300		18,393
Sun International Ltd.		11,828		130,981
TA Enterprise Bhd		382,700		76,293
Tsogo Sun Holdings Ltd.		30,115		69,770
Wowprime Corp.*		1,133		10,488
				2,169,155
Household Durables – 1.1%
Ability Enterprise Co., Ltd.		149,000		85,140
Altek Corp.*		28,000		30,628
AmTRAN Technology Co., Ltd.		238,000		136,384
Arcelik A/S		8,719		46,933
Corp. GEO SAB de CV* ^		93,100		61
Coway Co., Ltd.		2,200		185,317
Cyrela Brazil Realty S.A. Empreendimentos e Participacoes		82,952		323,615
Ez Tec Empreendimentos e Participacoes S.A.		17,435		110,224
Haier Electronics Group Co., Ltd.		44,000		126,872
Hanssem Co., Ltd.		405		74,993
Hyundai Livart Furniture Co., Ltd.		1,800		63,302
Kinpo Electronics, Inc.*		51,000		21,981
LG Electronics, Inc.		4,331		244,023
LG Electronics, Inc. (Preference)		690		18,763
LiHOM-CUCHEN Co., Ltd.*		3,349		39,676
MRV Engenharia e Participacoes S.A.		107,500		292,134
Oriental Weavers		51,705		71,695
Skyworth Digital Holdings Ltd.		53,872		48,165


	Shares		Value
Household Durables – (continued)
Steinhoff International Holdings Ltd.		84,495	$	534,129
Taiwan Sanyo Electric Co .,Ltd.		5,950		5,955
Tatung Co., Ltd.*		36,000		9,568
Welling Holding Ltd.		360,000		93,818
Whirlpool of India Ltd.*		4,000		44,103
Zeng Hsing Industrial Co., Ltd.		4,000		24,293
				2,631,772
Household Products – 0.4%
Hindustan Unilever Ltd.		29,819		399,222
Kimberly-Clark de Mexico SAB de CV, Class A		59,600		132,036
LG Household & Health Care Ltd.		361		265,362
LG Household & Health Care Ltd. (Preference)		64		21,463
NVC Lighting Holding Ltd.^		170,000		38,601
Unilever Indonesia Tbk PT		58,900		193,569
Vinda International Holdings Ltd.		2,000		4,479
				1,054,732
Independent Power and Renewable Electricity Producers – 1.3%
Aboitiz Power Corp.		71,937		69,385
Adani Power Ltd.*		22,211		15,019
AES Gener S.A.		89,312		51,453
AES Tiete S.A.		18,332		87,349
AES Tiete S.A. (Preference)		31,740		180,869
Aksa Enerji Uretim A/S*		62,088		62,897
Beijing Jingneng Clean Energy Co., Ltd., Class H		674,000		334,776
China Longyuan Power Group Corp. Ltd., Class H		104,000		129,612
China Power International Development Ltd.		86,000		55,587
China Power New Energy Development Co., Ltd.*		440,000		43,710
China Resources Power Holdings Co., Ltd.		72,000		217,826
Cia Energetica de Sao Paulo (Preference), Class B		9,100		56,681
Colbun S.A.		380,209		115,027
CPFL Energias Renovaveis S.A.*		7,600		32,868

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)
Independent Power and Renewable Electricity Producers – (continued)
Datang International Power Generation Co., Ltd., Class H		123,500	$	72,655
E.ON Russia JSC*		4,388,252		267,941
Edegel SAA		22,666		25,531
Electricity Generating PCL (NVDR)		7,900		36,307
Empresa Nacional de Electricidad S.A.		138,470		213,322
Energy Development Corp.		273,600		49,768
First Gen Corp.		84,039		53,032
Glow Energy PCL (NVDR)		19,000		49,279
Huadian Fuxin Energy Corp. Ltd., Class H		188,000		101,626
Huadian Power International Corp. Ltd., Class H		82,300		91,207
Huaneng Power International, Inc., Class H		122,000		174,710
Huaneng Renewables Corp. Ltd., Class H		384,000		168,439
Jaiprakash Power Ventures Ltd.*		249,660		33,804
JSW Energy Ltd.		24,223		43,667
NHPC Ltd.		43,444		13,509
NTPC Ltd.		49,126		116,250
Ratchaburi Electricity Generating Holding PCL (NVDR)		21,400		38,950
Reliance Power Ltd.*		14,713		13,123
SPCG PCL (NVDR)		43,600		36,041
Taiwan Cogeneration Corp.		53,000		52,436
Tractebel Energia S.A.		6,400		75,437
				3,180,093
Industrial Conglomerates – 1.8%
Aboitiz Equity Ventures, Inc.		81,670		103,899
Aditya Birla Nuvo Ltd.		952		23,502
Akfen Holding A/S		37,612		94,341
Alfa SAB de CV, Class A		116,300		235,842
Alliance Global Group, Inc.		103,200		58,865
AntarChile S.A.		4,897		61,647
Beijing Enterprises Holdings Ltd.		22,000		201,518
Berjaya Corp. Bhd		777,700		94,988
Berli Jucker PCL		200		224


	Shares		Value
Industrial Conglomerates – (continued)
Berli Jucker PCL (NVDR)		13,300	$	14,928
The Bidvest Group Ltd.		11,772		317,710
Boustead Holdings Bhd		35,900		46,570
Cahya Mata Sarawak Bhd		15,700		22,350
CITIC Ltd.		224,000		449,090
CJ Corp.		488		86,948
Daesang Holdings Co., Ltd.		2,470		64,054
DMCI Holdings, Inc.		136,650		46,031
Dogan Sirketler Grubu Holding A/S*		84,971		19,375
Doosan Corp.		204		23,692
Enka Insaat ve Sanayi A/S		16,578		35,633
Far Eastern New Century Corp.		117,663		129,473
Grupo Carso SAB de CV		22,400		92,220
HAP Seng Consolidated Bhd		30,700		39,824
Harim Holdings Co., Ltd.*		7,498		35,602
Hong Leong Industries Bhd		36,000		50,338
Hosken Consolidated Investments Ltd.		15,020		196,165
Jaiprakash Associates Ltd.*		150,618		48,850
JG Summit Holdings, Inc.		103,490		166,170
KAP Industrial Holdings Ltd.		76,957		35,401
KOC Holding A/S		27,695		130,962
LG Corp.		3,962		246,516
MMC Corp. Bhd		19,700		14,879
Quinenco S.A.		5,791		12,593
Reunert Ltd.		17,100		86,743
Samsung Techwin Co., Ltd.*		886		22,894
San Miguel Corp.		19,620		30,181
Shanghai Industrial Holdings Ltd.		14,000		55,992
Siemens Ltd.		2,046		43,835
Sigdo Koppers S.A.		94,568		141,637
Sime Darby Bhd		125,983		320,485
SK Holdings Co., Ltd.		1,014		174,991
SM Investments Corp.		13,220		267,339
Turkiye Sise ve Cam Fabrikalari A/S		8,622		11,023
Yazicilar Holding A/S, Class A		823		7,368
				4,362,688
Insurance – 3.5%
Anadolu Hayat Emeklilik A/S		9,693		20,110
Bajaj Finserv Ltd.		2,163		48,865

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)
Insurance – (continued)
Bangkok Insurance PCL (NVDR)		980	$	10,881
Bangkok Life Assurance PCL (NVDR)		11,340		17,200
BB Seguridade Participacoes S.A.		28,000		324,343
Cathay Financial Holding Co., Ltd.		307,962		539,984
China Life Insurance Co., Ltd.		106,662		113,189
China Life Insurance Co., Ltd., Class H		290,000		1,412,371
China Pacific Insurance Group Co., Ltd., Class H		104,200		568,646
China Taiping Insurance Holdings Co., Ltd.*		45,090		168,408
Discovery Ltd.		18,061		199,521
Dongbu Insurance Co., Ltd.		1,823		93,021
Hanwha General Insurance Co., Ltd.*		4,748		21,703
Hanwha Life Insurance Co., Ltd.		6,870		50,820
Hyundai Marine & Fire Insurance Co., Ltd.		2,660		70,966
Korean Reinsurance Co.		2,535		28,140
Liberty Holdings Ltd.		3,013		41,782
LIG Insurance Co., Ltd.		1,290		29,903
Long Bon International Co., Ltd.		122,000		97,995
LPI Capital Bhd		12,306		49,963
Max India Ltd.		7,260		48,956
Mercuries & Associates Holding Ltd.		118,520		82,623
Meritz Fire & Marine Insurance Co., Ltd.		1,700		22,677
MMI Holdings Ltd.		42,167		119,382
New China Life Insurance Co., Ltd., Class H		30,137		187,211
Panin Financial Tbk PT*		4,464,000		112,612
People’s Insurance Co. Group of China Ltd., Class H		220,300		153,192
PICC Property & Casualty Co., Ltd., Class H		131,634		292,779
Ping An Insurance Group Co. of China Ltd., Class H		101,500		1,458,764
Porto Seguro S.A.		3,700		45,882


	Shares		Value
Insurance – (continued)
Powszechny Zaklad Ubezpieczen S.A.		2,175	$	283,212
Qualitas Controladora SAB de CV*		20,900		39,185
Rand Merchant Insurance Holdings Ltd.		24,644		96,505
Samsung Fire & Marine Insurance Co., Ltd.		1,343		353,916
Samsung Fire & Marine Insurance Co., Ltd. (Preference)		84		13,595
Samsung Life Insurance Co., Ltd.		2,351		230,275
Sanlam Ltd.		72,449		466,404
Santam Ltd.		665		13,015
Shin Kong Financial Holding Co., Ltd.		294,615		95,717
Sul America S.A.		54,661		257,535
Tongyang Life Insurance		230		3,165
				8,284,413
Internet & Catalog Retail – 0.1%
B2W Cia Digital*		5,926		53,647
CJ O Shopping Co., Ltd.		100		22,388
GS Home Shopping, Inc.		85		18,951
Hyundai Home Shopping Network Corp.		189		23,801
Interpark Corp.		1,402		27,464
Interpark Holdings Corp.		3,713		30,965
				177,216
Internet Software & Services – 2.3%
Ahnlab, Inc.		620		28,571
Daou Technology, Inc.		4,256		74,639
Daum Kakao Corp.		949		95,520
HC International, Inc.*		12,000		18,887
Info Edge India Ltd.		3,225		39,049
Just Dial Ltd.		1,636		27,567
NAVER Corp.		1,098		665,765
Pacific Online Ltd.		46,000		24,688
PChome Online, Inc.		4,333		73,712
SINA Corp.*		2,600		114,387
Sohu.com, Inc.*		1,200		79,740
Tencent Holdings Ltd.		200,024		4,152,140

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)
Internet Software & Services – (continued)
Tian Ge Interactive Holdings Ltd.(a)		112,000	$	85,685
				5,480,350
IT Services – 1.7%
AGTech Holdings Ltd.*		204,000		23,424
Chinasoft International Ltd.* ^		190,000		108,590
Cielo S.A.		34,416		475,665
CMC Ltd.		1,152		34,065
Datasonic Group Bhd		61,000		18,155
EOH Holdings Ltd.		8,647		116,801
HCL Technologies Ltd.		20,150		279,353
Hexaware Technologies Ltd.		9,883		43,810
Hi Sun Technology China Ltd.*		204,000		82,114
Infosys Ltd.		27,432		838,854
Infosys Ltd. (ADR)		8,432		261,223
Kginicis Co., Ltd.		650		14,188
Mindtree Ltd.		2,484		47,686
Mphasis Ltd.		8,245		51,269
My EG Services Bhd		61,800		43,901
Persistent Systems Ltd.		3,894		43,268
Posco ICT Co., Ltd.		4,391		22,201
SK C&C Co., Ltd.		761		180,667
SONDA S.A.		15,472		36,546
Systex Corp.		16,000		30,928
Tata Consultancy Services Ltd.		17,991		697,858
Tech Mahindra Ltd.		9,196		89,962
TravelSky Technology Ltd., Class H		91,000		177,042
Vakrangee Ltd.		20,282		33,976
Wipro Ltd.		24,579		208,427
				3,959,973
Leisure Products – 0.1%
Giant Manufacturing Co., Ltd.		11,000		95,001
Johnson Health Tech Co., Ltd.		9,045		23,509
KMC Kuei Meng International, Inc.		2,000		9,339
Merida Industry Co., Ltd.		7,350		55,198
Topkey Corp.		2,192		9,877
				192,924


	Shares		Value
Life Sciences Tools & Services – 0.0%^†
Divi’s Laboratories Ltd.		817	$	22,169
Machinery – 1.2%
AIA Engineering Ltd.		1,599		28,967
Airtac International Group		4,280		35,077
Ashok Leyland Ltd.*		61,007		66,852
China Conch Venture Holdings Ltd.		39,000		105,159
China International Marine Containers Group Co., Ltd., Class H		13,400		36,218
China Yuchai International Ltd.		4,500		90,720
CIMC Enric Holdings Ltd.		20,000		22,216
Coastal Contracts Bhd		19,900		16,874
CSBC Corp. Taiwan		55,000		29,991
CSR Corp. Ltd., Class H		66,000		127,723
Cummins India Ltd.		2,089		28,354
Daewoo Shipbuilding & Marine Engineering Co., Ltd.		3,567		60,393
Doosan Engine Co., Ltd.*		1,060		6,882
Doosan Infracore Co., Ltd.*		4,930		54,727
Eicher Motors Ltd.		276		66,014
Famur S.A.		13,030		10,398
Haitian International Holdings Ltd.		30,000		74,776
Hanjin Heavy Industries & Construction Co., Ltd.*		14,677		85,160
Hiwin Technologies Corp.		7,302		55,911
Hy-Lok Corp.*		601		19,062
Hyundai Elevator Co., Ltd.*		455		32,427
Hyundai Heavy Industries Co., Ltd.*		1,647		215,093
Hyundai Mipo Dockyard Co., Ltd.*		502		41,911
Hyundai Rotem Co., Ltd.*		540		9,596
Jain Irrigation Systems Ltd.		30,018		26,939
King Slide Works Co., Ltd.		3,000		47,362
Kinik Co.		10,000		21,289
Lonking Holdings Ltd.		641,000		159,606
Nak Sealing Technologies Corp.		6,000		21,942
Otokar Otomotiv ve Savunma Sanayi A/S		706		25,467
Rechi Precision Co., Ltd.		21,969		23,851

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)
Machinery – (continued)
Samsung Heavy Industries Co., Ltd.		6,678	$	113,065
Sany Heavy Equipment International Holdings Co., Ltd.*		306,000		86,457
Shanghai Zhenhua Heavy Industries Co., Ltd., Class B*		93,800		74,946
Shin Zu Shing Co., Ltd.		52,000		144,322
Sinotruk Hong Kong Ltd.		11,000		7,862
SKF India Ltd.		1,144		25,448
Syncmold Enterprise Corp.		47,000		102,361
Thermax Ltd.		2,214		34,183
TK Corp.*		847		8,533
Turk Traktor ve Ziraat Makineleri A/S		564		16,845
United Tractors Tbk PT		66,000		108,960
WEG S.A.		21,720		116,746
Weichai Power Co., Ltd., Class H		25,000		99,501
Yungtay Engineering Co., Ltd.		11,000		25,322
Zoomlion Heavy Industry Science and Technology Co., Ltd., Class H		412,000		287,560
				2,899,068
Marine – 0.7%
China COSCO Holdings Co., Ltd., Class H*		309,693		286,074
China Shipping Container Lines Co., Ltd., Class H*		464,000		262,795
China Shipping Development Co., Ltd., Class H*		134,000		112,543
Chinese Maritime Transport Ltd.		8,000		8,490
Evergreen Marine Corp. Taiwan Ltd.		80,000		54,464
Grindrod Ltd.		52,512		71,590
Hanjin Shipping Co., Ltd.*		7,003		49,321
Hyundai Merchant Marine Co., Ltd.*		2,970		26,431
Korea Line Corp.*		1,439		31,143
Malaysian Bulk Carriers Bhd		25,400		8,558
MISC Bhd		40,800		104,821
Pan Ocean Co., Ltd.*		18,000		52,220


	Shares		Value
Marine – (continued)
Precious Shipping PCL (NVDR)		15,700	$	6,477
Shih Wei Navigation Co., Ltd.		78,484		46,000
Sincere Navigation Corp.		13,000		10,357
Sinotrans Shipping Ltd.*		77,500		21,697
Taiwan Navigation Co., Ltd.		26,000		17,276
Thoresen Thai Agencies PCL (NVDR)		66,519		27,039
Trencor Ltd.		54,107		297,684
U-Ming Marine Transport Corp.		7,000		10,525
Wan Hai Lines Ltd.		13,000		14,432
Wisdom Marine Lines Co., Ltd.*		18,192		23,879
Yang Ming Marine Transport Corp.*		41,000		21,487
				1,565,303
Media – 1.9%
Astro Malaysia Holdings Bhd		66,600		58,718
BEC World PCL (NVDR)		50,000		61,050
Cheil Worldwide, Inc.*		3,550		76,000
CJ CGV Co., Ltd.		643		47,625
CJ E&M Corp.*		570		31,265
CJ Hellovision Co., Ltd.		10,647		115,707
Cyfrowy Polsat S.A.		10,613		73,868
Dish TV India Ltd.*		17,517		20,753
Global City Holdings N.V.*		2,153		23,683
Global Mediacom Tbk PT		276,500		33,063
Grupo Televisa SAB*		103,400		751,625
Hyundai Hy Communications & Networks Co., Ltd.		3,530		17,518
KT Skylife Co., Ltd.		520		8,465
Loen Entertainment, Inc.		236		11,822
Major Cineplex Group PCL (NVDR)		20,200		20,528
Media Nusantara Citra Tbk PT		139,500		23,730
Media Prima Bhd		101,500		47,879
Megacable Holdings SAB de CV*		11,400		47,386
MNC Investama Tbk PT		3,535,400		73,367
MNC Sky Vision Tbk PT*		53,000		6,542
Multiplus S.A.		4,800		53,137
Naspers Ltd., Class N		15,564		2,435,626
Phoenix Satellite Television Holdings Ltd.		20,000		7,921

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)
Media – (continued)
SBS Media Holdings Co., Ltd.		15,440	$	76,624
SM Entertainment Co.*		1,662		48,759
Smiles S.A.		3,400		58,612
Star Publications Malaysia Bhd		20,000		13,983
Sun TV Network Ltd.		2,095		11,449
Surya Citra Media Tbk PT		172,049		38,491
TV18 Broadcast Ltd.*		39,466		21,686
TVN S.A.*		7,248		34,140
VGI Global Media PCL (NVDR)		33,696		4,641
Viva China Holdings Ltd.*		392,000		57,148
Wisdom Holdings Group		71,000		62,287
YG Entertainment, Inc.		1,335		58,531
Zee Entertainment Enterprises Ltd.		22,098		108,568
				4,642,197
Metals & Mining – 3.8%
African Rainbow Minerals Ltd.		4,543		41,227
Alrosa AO		80,667		106,937
Aluminum Corp. of China Ltd., Class H*		144,000		92,889
Aneka Tambang Persero Tbk PT*		417,800		25,624
Angang Steel Co., Ltd., Class H		120,000		100,166
Anglo American Platinum Ltd.*		1,911		52,290
AngloGold Ashanti Ltd.*		15,796		178,145
ArcelorMittal South Africa Ltd.*		24,451		40,369
Assore Ltd.		1,586		15,301
Bradespar S.A.		4,292		15,170
Bradespar S.A. (Preference)		69,445		279,026
Bumi Resources Minerals Tbk PT*		1,298,000		15,321
CAP S.A.		10,152		36,232
China Hongqiao Group Ltd.		12,500		11,692
China Metal Products		89,725		93,750
China Metal Recycling Holdings Ltd.* ^		51,000		—
China Molybdenum Co., Ltd., Class H		152,400		152,771
China Steel Corp.		457,981		385,065
China Zhongwang Holdings Ltd.		26,800		16,320


	Shares		Value
Metals & Mining – (continued)
Chinalco Mining Corp. International*		128,000	$	16,349
Chun Yuan Steel		63,000		23,965
Chung Hung Steel Corp.*		90,000		20,630
Cia Siderurgica Nacional S.A.		28,100		77,018
Dongkuk Steel Mill Co., Ltd.*		17,132		102,281
Eregli Demir ve Celik Fabrikalari TAS		57,421		96,591
Ezz Steel*		5,211		8,796
Feng Hsin Iron & Steel Co.		26,000		35,486
Fosun International Ltd.		77,000		192,720
Gerdau S.A.		4,800		12,196
Gerdau S.A. (Preference)		35,182		118,249
Gloria Material Technology Corp.		39,900		29,834
Gold Fields Ltd.		31,242		141,836
Grupa Kety S.A.		1,119		98,270
Grupo Mexico SAB de CV		151,000		465,556
Grupo Simec SAB de CV*		8,200		22,004
Hanson International Tbk PT*		934,935		51,210
Harmony Gold Mining Co., Ltd.*		44,963		85,743
Hindalco Industries Ltd.		32,860		66,532
Hindustan Zinc Ltd.		6,592		17,581
Honbridge Holdings Ltd.*		164,000		56,492
Hyundai Hysco Co., Ltd.		304		18,887
Hyundai Steel Co.		2,736		200,861
Impala Platinum Holdings Ltd.*		21,112		116,542
Industrias CH SAB de CV*		18,700		76,183
Industrias Penoles SAB de CV		5,500		93,169
Jastrzebska Spolka Weglowa S.A.*		1,645		6,541
Jiangxi Copper Co., Ltd., Class H		45,000		93,354
Jindal Steel & Power Ltd.		17,708		38,921
JSW Steel Ltd.		4,295		63,037
Kardemir Karabuk Demir Celik Sanayi ve Ticaret A/S, Class A*		8,180		7,339
Kardemir Karabuk Demir Celik Sanayi ve Ticaret A/S, Class D*		29,128		20,035
KGHM Polska Miedz S.A.		4,852		169,997
KISWIRE Ltd.		1,913		124,559
Korea Zinc Co., Ltd.		353		157,236

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)
Metals & Mining – (continued)
Koza Altin Isletmeleri A/S		14,453	$	150,465
Krakatau Steel Persero Tbk PT*		1,237,000		33,400
Kumba Iron Ore Ltd.		3,348		44,849
Magnitogorsk Iron & Steel Works OJSC*		206,987		60,664
Magnitogorsk Iron & Steel Works OJSC (GDR)		16,812		62,541
Metalurgica Gerdau S.A.		10,716		29,836
Metalurgica Gerdau S.A. (Preference)		83,408		272,274
Minera Frisco SAB de CV*		12,600		10,450
MMC Norilsk Nickel OJSC*		974		182,001
MMC Norilsk Nickel OJSC (ADR)		12,120		227,614
MMG Ltd.		88,000		37,806
MOIL Ltd.		9,107		36,348
Nickel Asia Corp.		50,532		25,816
NMDC Ltd.		36,222		73,140
North Mining Shares Co., Ltd.*		840,000		41,181
Northam Platinum Ltd.*		40,263		164,438
Novolipetsk Steel OJSC*		29,448		38,975
Poongsan Corp.		6,434		173,754
POSCO		2,605		612,369
POSCO Chemtech Co., Ltd.^		267		34,097
Press Metal Bhd		24,700		19,627
Royal Bafokeng Platinum Ltd.*		5,164		22,369
Seah Besteel Corp.		761		26,053
SeAH Steel Corp.		750		56,950
Sesa Sterlite Ltd.		47,753		157,773
Severstal OAO*		3,213		36,032
Severstal PAO (GDR)		4,939		54,724
Shougang Fushan Resources Group Ltd.		702,000		180,229
Sibanye Gold Ltd.		29,805		70,199
Stalprodukt S.A.		663		80,636
Steel Authority of India Ltd.		38,744		42,364
STP & I PCL (NVDR)		49,060		24,258
TA Chen Stainless Pipe*		64,900		43,654
Tata Steel Ltd.		12,806		72,654
Timah Persero Tbk PT		237,504		14,933
Ton Yi Industrial Corp.		19,000		15,013
Tung Ho Steel Enterprise Corp.		25,000		19,591


	Shares		Value
Metals & Mining – (continued)
Usinas Siderurgicas de Minas Gerais S.A.		13,721	$	76,679
Usinas Siderurgicas de Minas Gerais S.A. (Preference), Class A		44,597		90,263
Vale Indonesia Tbk PT		68,500		14,770
Vale S.A.		61,300		465,006
Vale S.A. (Preference)		66,619		399,396
Volcan Cia Minera SAA, Class B		74,876		14,616
YC INOX Co., Ltd.		99,000		80,652
Yeong Guan Energy Technology Group Co., Ltd.		9,178		62,333
Yieh Phui Enterprise Co., Ltd.		55,080		17,355
Young Poong Corp.		29		35,709
Zijin Mining Group Co., Ltd., Class H^		178,000		68,663
				9,158,814
Multiline Retail – 0.8%
Aeon Co. M Bhd		15,200		13,871
El Puerto de Liverpool SAB de CV*		9,100		99,839
The Eslite Spectrum Corp.		1,000		5,322
Far Eastern Department Stores Ltd.		21,012		16,912
Golden Eagle Retail Group Ltd.		26,000		38,977
Grupo Sanborns SAB de CV		12,500		19,953
Hyundai Department Store Co., Ltd.		578		78,720
Intime Retail Group Co., Ltd.		27,500		30,866
Lojas Americanas S.A.		4,375		18,994
Lojas Americanas S.A. (Preference)		22,572		128,400
Lojas Renner S.A.		4,900		171,914
Lotte Shopping Co., Ltd.		446		107,756
Maoye International Holdings Ltd.		441,000		97,859
Marisa Lojas S.A.		5,300		25,254
Matahari Department Store Tbk PT		64,100		86,538
Mitra Adiperkasa Tbk PT		80,200		34,493
Multipolar Tbk PT		906,895		56,320
New World Department Store China Ltd.		171,000		49,197

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)
Multiline Retail – (continued)
Parkson Holdings Bhd*		14,038	$	8,474
Parkson Retail Group Ltd.		182,000		46,256
Poya International Co., Ltd.		4,040		43,334
Robinson Department Store PCL (NVDR)		19,300		27,371
SACI Falabella		42,972		335,199
Shinsegae Co., Ltd.		308		57,894
Springland International Holdings Ltd.		324,000		124,565
Taiwan FamilyMart Co., Ltd.		2,000		15,608
Woolworths Holdings Ltd.		37,494		280,731
				2,020,617
Multi-Utilities – 0.1%
Tianjin Development Hldgs Ltd.		56,000		53,102
YTL Corp. Bhd		176,400		82,714
YTL Power International Bhd		55,860		25,095
				160,911
Oil, Gas & Consumable Fuels – 6.9%
Adaro Energy Tbk PT		645,200		43,553
AK Transneft OAO (Preference)*		482		1,133,488
The Bangchak Petroleum PCL (NVDR)		10,400		11,200
Banpu PCL (NVDR)		37,800		33,253
Bashneft OAO*		7,922		329,689
Bashneft OAO (Preference)*		4,167		137,959
Bharat Petroleum Corp. Ltd.		7,494		90,231
Cairn India Ltd.		21,956		73,786
China Coal Energy Co., Ltd., Class H		153,000		100,866
China Petroleum & Chemical Corp., Class H		996,236		933,110
China Shenhua Energy Co., Ltd., Class H		131,619		342,159
CNOOC Ltd.		699,000		1,184,967
Coal India Ltd.		19,633		112,129
Cosan S.A. Industria e Comercio		4,400		42,605
Ecopetrol S.A.*		205,862		176,724
Empresas COPEC S.A.		20,768		238,391
Energy Absolute PCL (NVDR)		60,600		48,256
Energy Earth PCL (NVDR)		81,000		11,991
Essar Oil Ltd.*		11,219		19,209


	Shares		Value
Oil, Gas & Consumable Fuels – (continued)
Esso Thailand PCL (NVDR)*		355,100	$	70,018
Exxaro Resources Ltd.		4,802		39,055
Formosa Petrochemical Corp.		48,000		123,816
Gazprom OAO		328,112		976,265
Gazprom OAO (ADR)		73,857		437,529
The Great Eastern Shipping Co., Ltd.		17,277		92,607
Grupa Lotos S.A.*		29,152		248,702
GS Holdings Corp.		2,129		99,698
Gujarat Mineral Development Corp. Ltd.		25,548		40,646
Hankook Shell Oil Co., Ltd.		56		25,701
Hindustan Petroleum Corp. Ltd.		3,954		38,917
Indian Oil Corp. Ltd.		11,043		62,800
Indo Tambangraya Megah Tbk PT		13,100		12,734
Inner Mongolia Yitai Coal Co., Ltd., Class B		28,800		43,834
IRPC PCL (NVDR)		293,800		40,997
Kunlun Energy Co., Ltd.		116,022		138,158
Lubelski Wegiel Bogdanka S.A.		1,075		26,208
Lukoil OAO*		14,967		767,532
Lukoil OAO (ADR)		5,205		266,496
Medco Energi Internasional Tbk PT		117,500		29,007
MOL Hungarian Oil & Gas PLC		1,778		98,892
NOVATEK OAO*		23,111		221,301
Oil & Natural Gas Corp. Ltd.		29,986		143,521
Oil India Ltd.		3,776		27,216
PetroChina Co., Ltd., Class H		836,000		1,074,235
Petroleo Brasileiro S.A.*		122,200		580,634
Petroleo Brasileiro S.A. (Preference)*		147,863		643,408
Petron Corp.		52,500		11,613
Petronas Dagangan Bhd		10,000		60,087
Petronet LNG Ltd.		11,664		32,073
Polski Koncern Naftowy Orlen S.A.		12,881		244,407
Polskie Gornictwo Naftowe i Gazownictwo S.A.		77,952		140,392
PTT Exploration & Production PCL		469		1,665
PTT Exploration & Production PCL (NVDR)		53,921		191,377
PTT PCL (NVDR)		34,800		375,817
Reliance Industries Ltd.		28,653		389,025

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)
Oil, Gas & Consumable Fuels – (continued)
Reliance Industries Ltd. (GDR)(a)		10,280	$	276,532
Rosneft OAO*		35,926		178,621
Rosneft OAO (GDR)		8,454		41,763
Sasol Ltd.		21,835		877,754
Semirara Mining and Power Corp.		12,450		46,272
Shell Refining Co. Federation of Malaya Bhd*		34,300		46,324
Sinopec Kantons Holdings Ltd.		36,000		32,604
SK Gas Ltd.		270		24,229
SK Innovation Co., Ltd.*		2,465		271,334
S-Oil Corp.		1,939		132,764
Sugih Energy Tbk PT*		5,647,700		172,100
Surgutneftegas OAO*		187,437		139,516
Surgutneftegas OAO (ADR)		3,307		23,976
Surgutneftegas OAO (Preference)*		211,682		159,409
Surgutneftegas OAO (Preference) (ADR)		12,172		91,290
Tambang Batubara Bukit Asam Persero Tbk PT		27,500		19,836
Tatneft OAO*		19,747		111,903
Tatneft OAO (ADR)		6,646		228,224
Tatneft OAO (Preference)*		3,554		11,498
Thai Oil PCL (NVDR)		45,200		80,212
Tupras Turkiye Petrol Rafinerileri A/S*		5,062		122,806
Ultrapar Participacoes S.A.		13,200		303,564
Yanchang Petroleum International Ltd.*		1,480,000		67,783
Yanzhou Coal Mining Co., Ltd., Class H		56,000		55,992
				16,396,255
Paper & Forest Products – 0.5%
Chung Hwa Pulp Corp.*		90,000		32,325
Duratex S.A.		34,199		97,042
Empresas CMPC S.A.		49,982		140,232
Fibria Celulose S.A.*		10,000		141,378
Hansol Holdings Co., Ltd.*		8,525		64,017
Indah Kiat Pulp & Paper Corp. Tbk PT		907,300		78,394
Jaya Tiasa Holdings Bhd		35,400		16,102


	Shares		Value
Paper & Forest Products – (continued)
Lee & Man Paper Manufacturing Ltd.		59,000	$	33,568
Long Chen Paper Co., Ltd.		145,038		64,170
Mondi Ltd.		4,420		88,636
Nine Dragons Paper Holdings Ltd.		56,000		45,877
Pfleiderer Grajewo S.A.*		2,557		20,900
Sappi Ltd.*		20,544		83,852
Shihlin Paper Corp.*		8,000		10,292
Superb Summit International Group Ltd.* ^		395,000		74,402
Suzano Papel e Celulose S.A. (Preference), Class A		13,582		68,339
Ta Ann Holdings Bhd		11,100		11,687
YFY, Inc.		31,000		13,209
				1,084,422
Personal Products – 0.7%
Amorepacific Corp.^		132		478,254
Amorepacific Corp. (Preference)^		24		41,888
AMOREPACIFIC Group^		104		158,134
Chlitina Holding Ltd.		9,000		55,541
Colgate-Palmolive India Ltd.		786		24,604
Dabur India Ltd.		24,631		97,686
EIS Eczacibasi Ilac ve Sinai ve Finansal Yatirimlar Sanayi ve Ticaret A/S		24,251		25,746
Emami Ltd.		1,351		19,784
Godrej Consumer Products Ltd.		4,977		82,415
Grape King Bio Ltd.		8,000		43,623
Hengan International Group Co., Ltd.		27,500		339,885
Hypermarcas S.A.*		13,600		90,242
Korea Kolmar Co., Ltd.*		1,030		69,852
Korea Kolmar Holdings Co., Ltd.		1,000		49,440
Marico Ltd.		4,975		31,464
Microbio Co., Ltd.*		35,365		30,485
Natura Cosmeticos S.A.		6,400		60,414
				1,699,457
Pharmaceuticals – 2.1%
Adcock Ingram Holdings Ltd.*		5,712		25,325
Ajanta Pharma Ltd.		2,580		51,303

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)
Pharmaceuticals – (continued)
Alembic Pharmaceuticals Ltd.		5,526	$	41,183
Aspen Pharmacare Holdings Ltd.*		12,366		374,409
Aurobindo Pharma Ltd.		3,962		80,198
Beijing Tong Ren Tang Chinese Medicine Co., Ltd.		34,000		57,550
Bukwang Pharmaceutical Co., Ltd.		1,237		28,502
Cadila Healthcare Ltd.		1,230		32,956
Celltrion, Inc.*		2,790		223,044
Center Laboratories, Inc.*		4,500		13,092
China Medical System Holdings Ltd.		39,000		68,932
China Shineway Pharmaceutical Group Ltd.		31,000		52,792
China Traditional Chinese Medicine Co., Ltd.*		68,000		53,251
Chong Kun Dang Pharmaceutical Corp.		1,073		71,767
Cipla Ltd.		13,869		138,876
Consun Pharmaceutical Group Ltd.		39,000		31,195
CSPC Pharmaceutical Group Ltd.		82,100		85,371
Daewoong Pharmaceutical Co., Ltd.		452		27,280
Dawnrays Pharmaceutical Holdings Ltd.		36,000		30,421
Dong-A Socio Holdings Co., Ltd.		267		38,232
Dong-A ST Co., Ltd.		569		65,817
Dr Reddy’s Laboratories Ltd.		1,961		102,203
Dr. Reddy’s Laboratories Ltd. (ADR)		1,456		75,683
Genomma Lab Internacional SAB de CV, Class B*		85,600		100,864
GlaxoSmithKline Pharmaceuticals Ltd.*		690		34,583
Glenmark Pharmaceuticals Ltd.		4,184		58,648
Green Cross Holdings Corp.		2,280		62,105
Guangzhou Baiyunshan Pharmaceutical Holdings Co., Ltd., Class H		22,000		84,297
Hanmi Pharm Co., Ltd.*		613		215,865


	Shares		Value
Pharmaceuticals – (continued)
Hanmi Science Co., Ltd.*		1,743	$	69,915
Hua Han Bio-Pharmaceutical Holdings Ltd., Class H		108,960		29,942
Huons Co., Ltd.		664		41,748
Ilyang Pharmaceutical Co., Ltd.*		1,310		39,838
Kalbe Farma Tbk PT		886,300		122,732
Komipharm International Co., Ltd.*		3,041		69,784
Kwang Dong Pharmaceutical Co., Ltd.		3,838		59,253
LG Life Sciences Ltd.*		812		42,721
Lijun International Pharmaceutical Holding Co., Ltd,		68,000		30,179
Livzon Pharmaceutical Group, Inc., Class H		8,400		60,688
Lotus Pharmaceutical Co., Ltd.*		8,000		25,155
Luye Pharma Group Ltd.*		52,500		67,461
Piramal Enterprises Ltd.		3,018		44,575
Richter Gedeon Nyrt		42,766		720,864
Sanofi India Ltd.		1,139		59,534
ScinoPharm Taiwan Ltd.		9,568		16,058
Shanghai Fosun Pharmaceutical Group Co., Ltd., Class H		12,500		47,654
Sihuan Pharmaceutical Holdings Group Ltd.^		141,000		80,222
Sino Biopharmaceutical Ltd.		112,000		128,311
Sun Pharma Advanced Research Co., Ltd.*		6,621		41,520
Sun Pharmaceutical Industries Ltd.		32,907		486,416
Tempo Scan Pacific Tbk PT		21,000		3,289
Tong Ren Tang Technologies Co., Ltd., Class H		55,000		96,218
Torrent Pharmaceuticals Ltd.		1,906		36,066
TTY Biopharm Co., Ltd.		28,686		63,786
TWi Pharmaceuticals, Inc.*		3,000		20,081
Whanin Pharmaceutical Co., Ltd.		2,000		40,205
Wockhardt Ltd.		3,395		68,841
Yuhan Corp.		282		60,767
YungShin Global Holding Corp.		13,000		23,643
				5,023,210

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)
Professional Services – 0.0%^†
Sporton International, Inc.		6,120	$	34,870
Real Estate Investment Trusts (REITs) – 0.8%
Axis Real Estate Investment Trust		47,200		47,975
Capital Property Fund		54,889		62,803
CapitaMalls Malaysia Trust		116,900		48,907
Emira Property Fund		46,823		71,080
Emlak Konut Gayrimenkul Yatirim Ortakligi A/S		80,499		92,982
Fibra Uno Administracion S.A. de CV		79,200		197,370
Fortress Income Fund Ltd.		15,574		39,052
Fortress Income Fund Ltd., Class A		35,290		47,373
Fountainhead Property Trust		12,733		10,639
Growthpoint Properties Ltd.		107,577		251,123
Hyprop Investments Ltd.		7,010		71,823
IGB Real Estate Investment Trust		33,800		13,002
KLCCP Stapled Group		9,500		18,832
Mexico Real Estate Management S.A. de CV*		241,690		365,975
Pavilion Real Estate Investment Trust		22,500		9,855
PLA Administradora Industrial S de RL de CV*		72,649		143,303
Prologis Property Mexico S.A. de CV*		45,868		81,190
Redefine Properties Ltd.		123,668		124,742
Resilient Property Income Fund Ltd.		11,449		95,251
S.A. Corporate Real Estate Fund Nominees Pty Ltd.		154,323		64,279
Sunway Real Estate Investment Trust		39,400		18,917
Torunlar Gayrimenkul Yatirim Ortakligi A/S		48,092		73,168
Vukile Property Fund Ltd.		54,165		86,393
				2,036,034
Real Estate Management & Development – 4.0%
Agile Property Holdings Ltd.		33,750		28,302
Agung Podomoro Land Tbk PT		2,233,400		72,020
Alam Sutera Realty Tbk PT		3,383,900		160,548


	Shares		Value
Real Estate Management & Development – (continued)
Aliansce Shopping Centers S.A.		8,900	$	50,242
Attacq Ltd.*		48,664		101,430
Ayala Land, Inc.		215,700		187,218
Bangkok Land PCL (NVDR)		71,000		3,295
Beijing Properties Holdings Ltd.*		370,800		38,749
Belle Corp.		581,100		54,417
BR Malls Participacoes S.A.		17,800		97,456
BR Properties S.A.		20,100		73,723
Bumi Serpong Damai Tbk PT		242,500		34,890
Carnival Group International Holdings Ltd.*		409,223		83,944
Cathay Real Estate Development Co., Ltd.		23,000		14,457
Central China Real Estate Ltd.		244,000		72,717
Central Pattana PCL (NVDR)		68,500		87,274
China Merchants Land Ltd.		414,000		132,460
China Merchants Property Development Co., Ltd., Class B^		72,300		212,670
China Oceanwide Holdings Ltd.		126,000		19,669
China Overseas Grand Oceans Group Ltd.		264,000		158,717
China Overseas Land & Investment Ltd.		160,000		669,836
China Resources Land Ltd.		97,777		356,360
China SCE Property Holdings Ltd.*		370,800		77,498
China South City Holdings Ltd.		78,000		34,516
China Vast Industrial Urban Development Co., Ltd.(a) *		144,000		60,564
Chong Hong Construction Co., Ltd.		6,300		14,379
Cie Generale Immobiliere^		297		22,180
CIFI Holdings Group Co., Ltd.		726,000		224,792
Ciputra Development Tbk PT		501,500		53,197
Colour Life Services Group Co., Ltd.*		47,000		65,972
Country Garden Holdings Co., Ltd.		183,470		99,414
DLF Ltd.		20,038		43,048
Douja Promotion Groupe Addoha S.A.		4,779		15,261
Eastern & Oriental Bhd		33,440		18,309
Echo Investment S.A.*		38,151		71,881

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)
Real Estate Management & Development – (continued)
Evergrande Real Estate Group Ltd.		266,000	$	252,234
Fantasia Holdings Group Co., Ltd.		418,500		68,570
Farglory Land Development Co., Ltd.		20,261		24,246
Franshion Properties China Ltd.		130,000		52,663
Globe Trade Centre S.A.*		19,035		32,647
Glorious Property Holdings Ltd.*		747,000		114,684
Goldin Properties Holdings Ltd.*		44,000		106,947
Greentown China Holdings Ltd.		18,000		22,386
Guangzhou R&F Properties Co., Ltd., Class H		318,000		406,980
Heliopolis Co. for Housing and Construction SAE		2,221		17,820
Hemaraj Land and Development PCL (NVDR)		249,700		32,723
Highwealth Construction Corp.		10,500		27,496
Hongkong Land Holdings Ltd.		46,000		372,600
Hopson Development Holdings Ltd.*		16,000		18,826
Huaku Development Co., Ltd.		68,000		155,868
Huang Hsiang Construction Corp.		41,000		59,440
Hung Poo Real Estate Development Corp.		96,000		85,418
Hung Sheng Construction Ltd.*		156,000		112,062
Hydoo International Holding Ltd.		362,000		71,455
Iguatemi Empresa de Shopping Centers S.A.		5,900		52,940
IOI Properties Group Bhd		100,100		60,147
Jiangsu Future Land Co., Ltd., Class B^		162,800		82,540
Joy City Property Ltd.*		186,000		38,874
Kaisa Group Holdings Ltd.* ^		66,000		13,283
KEE TAI Properties Co., Ltd.		112,000		73,506
Kindom Construction Corp.		117,000		105,822
Korea Real Estate Investment & Trust Co., Ltd. (REIT)*		10,789		32,558
KrisAssets Holdings Bhd* ^		17,100		—
KSL Holdings BHD		167,396		90,243
KWG Property Holding Ltd.		46,418		47,130


	Shares		Value
Real Estate Management & Development – (continued)
Land & Houses PCL (NVDR)		78,900	$	22,857
Lippo Karawaci Tbk PT		702,000		64,175
Longfor Properties Co., Ltd.		47,000		81,859
LPN Development PCL (NVDR)		46,700		24,366
Mah Sing Group Bhd		90,088		53,372
MBK PCL (NVDR)		212,000		91,321
Medinet Nasr Housing*		4,206		18,009
Megaworld Corp.		413,000		49,156
Mingfa Group International Co., Ltd.*		36,000		12,772
Multiplan Empreendimentos Imobiliarios S.A.		2,600		45,514
New World China Land Ltd.		110,000		74,789
Pakuwon Jati Tbk PT		730,000		24,667
Palm Hills Developments SAE*		33,158		11,733
Parque Arauco S.A.		49,683		101,371
The Phoenix Mills Ltd.		8,000		45,879
Poly Property Group Co., Ltd.		51,000		32,833
Powerlong Real Estate Holdings Ltd.*		114,000		24,856
Prince Housing & Development Corp.		40,197		17,391
Pruksa Real Estate PCL (NVDR)		8,300		6,924
Quality Houses PCL (NVDR)		352,625		33,161
Radium Life Tech Co., Ltd.*		13,633		7,122
Redco Properties Group Ltd.(a)		56,000		31,500
Renhe Commercial Holdings Co., Ltd.*		1,776,000		99,670
Road King Infrastructure Ltd.		97,000		97,862
Robinsons Land Corp.		31,900		21,455
Ruentex Development Co., Ltd.		23,820		42,388
Sansiri PCL (NVDR)		1,614,200		92,548
Selangor Properties Bhd		10,100		15,597
Shanghai Industrial Urban Development Group Ltd.*		134,000		38,725
Shanghai Lujiazui Finance & Trade Zone Development Co., Ltd., Class B		53,900		164,341
Shenzhen Investment Ltd.		96,266		53,032
Shimao Property Holdings Ltd.		53,000		125,540
Shining Building Business Co., Ltd.*		38,610		22,945
Shui On Land Ltd.		122,666		39,722

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)
Real Estate Management & Development – (continued)
Sino-Ocean Land Holdings Ltd.		135,267	$	113,084
Sinyi Realty, Inc.		9,223		10,646
SM Prime Holdings, Inc.		217,100		90,974
Sobha Ltd.		2,976		18,362
SOHO China Ltd.		57,500		43,694
SP Setia Bhd Group		14,872		14,239
Summarecon Agung Tbk PT		313,000		42,981
Sunac China Holdings Ltd.		65,000		85,703
Sunway Bhd		42,533		45,262
Supalai PCL (NVDR)		8,600		5,218
Talaat Moustafa Group		43,834		57,794
Tian An China Investment Co., Ltd.		270,000		178,696
TICON Industrial Connection PCL (NVDR)		88,430		40,238
Times Property Holdings Ltd.		154,000		70,730
Tropicana Corp. Bhd*		105,100		32,166
UEM Sunrise Bhd		46,300		16,770
Unitech Ltd.*		166,584		40,390
UOA Development Bhd		34,700		22,019
Vista Land & Lifescapes, Inc.		1,004,500		169,184
Wanda Hotel Development Co., Ltd.*		28,000		6,105
WHA Corp. PCL (NVDR)		39,409		50,210
Wuzhou International Holdings Ltd.		410,000		71,938
Yida China Holdings Ltd.*		334,000		139,613
Yuexiu Property Co., Ltd.		324,520		79,548
Yuzhou Properties Co., Ltd.		322,200		93,528
Zall Development Group Ltd.		219,000		79,676
Zhuguang Holdings Group Co., Ltd.*		44,000		8,912
				9,460,645
Road & Rail – 0.2%
BTS Group Holdings PCL (NVDR)		299,840		84,135
CAR, Inc.*		16,000		37,899
CJ Korea Express Co., Ltd.*		357		68,103
Evergreen International Storage & Transport Corp.		41,000		23,963


	Shares		Value
Road & Rail – (continued)
Guangshen Railway Co., Ltd., Class H		182,000	$	120,924
JSL S.A.		6,400		24,712
Localiza Rent a Car S.A.		5,320		62,654
				422,390
Semiconductors & Semiconductor Equipment – 4.3%
A-DATA Technology Co., Ltd.		64,131		102,083
Advanced Semiconductor Engineering, Inc.		244,000		347,365
ALI Corp.		42,000		31,953
Ardentec Corp.		115,468		108,584
Chipbond Technology Corp.		23,000		50,016
ChipMOS Technologies, Inc.		8,000		11,807
Elan Microelectronics Corp.*		11,000		18,102
Elite Advanced Laser Corp.		8,000		34,872
Elite Semiconductor Memory Technology, Inc.		22,000		31,032
eMemory Technology, Inc.		3,000		34,138
Eo Technics Co., Ltd.		400		41,306
Epistar Corp.		42,436		66,510
E-Ton Solar Tech Co., Ltd.*		38,000		19,976
Eugene Technology Co., Ltd.		1,668		25,051
Everlight Electronics Co., Ltd.		10,000		23,183
Faraday Technology Corp.		34,000		46,960
GCL-Poly Energy Holdings Ltd.*		413,000		125,214
GemVax & Kael Co., Ltd.*		3,106		60,411
Gigasolar Materials Corp.		1,380		23,972
Gigastorage Corp.*		31,000		27,178
Gintech Energy Corp.*		32,000		20,479
Global Mixed Mode Technology, Inc.		5,000		14,285
Global Unichip Corp.		7,000		18,445
Greatek Electronics, Inc.		13,000		17,510
Green Energy Technology, Inc.*		15,000		9,624
Hanergy Thin Film Power Group Ltd.*		343,293		319,769
Hermes Microvision, Inc.		1,000		70,855
Holtek Semiconductor, Inc.		19,000		34,928
Inotera Memories, Inc.*		91,000		105,631
King Yuan Electronics Co., Ltd.		40,000		36,505
Kinsus Interconnect Technology Corp.		10,000		30,660

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)
Semiconductors & Semiconductor Equipment – (continued)
Koh Young Technology, Inc.		1,153	$	47,647
Landing International Development Ltd.*		325,000		7,925
LEENO Industrial, Inc.		1,098		47,116
Lextar Electronics Corp.		55,000		49,925
Macronix International*		181,000		43,970
MediaTek, Inc.		55,000		709,365
Motech Industries, Inc.		12,000		15,438
Nanya Technology Corp.*		18,000		40,319
Neo Solar Power Corp.		23,914		21,512
Novatek Microelectronics Corp.		22,000		115,653
Orient Semiconductor Electronics Ltd.*		74,000		39,143
Parade Technologies Ltd.		2,400		23,901
Phison Electronics Corp.		4,000		37,158
Pixart Imaging, Inc.		12,000		36,871
Powertech Technology, Inc.		24,000		44,511
Radiant Opto-Electronics Corp.		22,330		73,641
Realtek Semiconductor Corp.		17,070		53,507
Richtek Technology Corp.		5,000		28,407
Semiconductor Manufacturing International Corp.*		900,000		99,856
Seoul Semiconductor Co., Ltd.*		1,489		26,946
Shunfeng International Clean Energy Ltd.*		34,000		24,038
Sigurd Microelectronics Corp.		114,000		108,134
Silicon Works Co., Ltd.		3,319		126,165
Siliconware Precision Industries Co., Ltd.		127,000		209,828
Sino-American Silicon Products, Inc.*		17,000		25,118
Sitronix Technology Corp.		14,000		50,741
SK Hynix, Inc.		23,008		990,503
Sonix Technology Co., Ltd.		17,000		25,700
Taiwan Semiconductor Manufacturing Co., Ltd.		960,200		4,608,810
Taiwan Surface Mounting Technology Co., Ltd.		72,920		96,668
Topco Scientific Co., Ltd.		46,920		96,365
Transcend Information, Inc.		3,000		11,559
United Microelectronics Corp.		494,000		235,499
Unity Opto Technology Co., Ltd.		25,000		27,183


	Shares		Value
Semiconductors & Semiconductor Equipment – (continued)
Vanguard International Semiconductor Corp.		30,000	$	46,333
Via Technologies, Inc.*		25,000		7,469
Win Semiconductors Corp.		22,000		28,698
Winbond Electronics Corp.*		156,000		51,956
Wonik IPS Co., Ltd.*		2,519		28,315
				10,270,297
Software – 0.5%
Actoz Soft Co., Ltd.*		355		10,117
Asseco Poland S.A.		2,197		36,932
Boyaa Interactive International Ltd.		26,000		26,868
Brogent Technologies, Inc.*		2,000		25,436
CD Projekt S.A.*		7,867		45,099
Com2uSCorp*		270		45,588
Cyberlink Corp.		7,240		21,394
Cyient Ltd.		8,187		62,026
Devsisters Co., Ltd.*		1,612		46,315
Hancom, Inc.		2,016		37,894
International Games System Co., Ltd.		9,000		37,321
Kingdee International Software Group Co., Ltd.*		186,000		110,864
Kingsoft Corp. Ltd.		23,000		90,354
NCSoft Corp.		490		93,475
Neowiz Games Corp.*		1,456		29,677
NetDragon Websoft, Inc.		18,000		55,618
NHN Entertainment Corp.*		512		30,233
Oracle Financial Services Software Ltd.		654		34,141
Soft-World International Corp.		11,000		31,464
SundayToz Corp.*		2,000		25,373
TOTVS S.A.		14,300		168,364
Webzen, Inc.*		1,800		71,110
WeMade Entertainment Co., Ltd.*		828		30,432
X-Legend Entertainment Co., Ltd.		5,000		26,203
XPEC Entertainment, Inc.		5,992		29,348
				1,221,646
Specialty Retail – 0.8%
Ace Hardware Indonesia Tbk PT		662,500		32,965
Baoxin Auto Group Ltd.		15,000		11,882

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)
Specialty Retail – (continued)
BerMaz Motor Sdn Bhd*		39,200	$	44,467
China Harmony Auto Holding Ltd.		111,000		140,340
China Yongda Automobiles Services Holdings Ltd.		179,000		145,488
China ZhengTong Auto Services Holdings Ltd.		302,500		207,231
Cia Hering		16,100		95,557
The Foschini Group Ltd.		5,621		82,838
GOME Electrical Appliances Holding Ltd.		418,447		107,430
Hengdeli Holdings Ltd.		606,800		136,216
Home Product Center PCL (NVDR)		105,064		22,947
Hotai Motor Co., Ltd.		9,000		156,044
Hotel Shilla Co., Ltd.		1,373		137,044
Italtile Ltd.		101,157		98,990
Kolao Holdings		1,207		22,631
LOTTE Himart Co., Ltd.		231		15,343
Mr. Price Group Ltd.		9,465		201,346
National Petroleum Co., Ltd.		27,000		33,192
Senao International Co., Ltd.		1,000		1,528
Seobu T&D*		547		12,068
Shinsegae International Co., Ltd.		150		14,972
Siam Global House PCL (NVDR)		41,066		12,084
Super Group Ltd.*		41,023		123,486
Truworths International Ltd.		17,741		128,679
Via Varejo S.A.		5,000		31,210
Zhongsheng Group Holdings Ltd.		17,500		16,030
				2,032,008
Technology Hardware, Storage & Peripherals – 4.3%
Acer, Inc.*		111,858		73,413
Adlink Technology, Inc.		7,490		23,600
Advantech Co., Ltd.		14,292		118,299
ASROCK, Inc.		4,000		9,730
Asustek Computer, Inc.		27,000		286,962
Aten International Co., Ltd.		26,000		77,000
Casetek Holdings Ltd.		4,000		24,358
Catcher Technology Co., Ltd.		25,000		293,868
Chicony Electronics Co., Ltd.		19,230		55,569


	Shares		Value
Technology Hardware, Storage & Peripherals – (continued)
Clevo Co.		18,322	$	28,985
CMC Magnetics Corp.*		353,000		43,915
Compal Electronics, Inc.		179,000		163,652
Coolpad Group Ltd.		732,000		273,869
Elitegroup Computer Systems Co., Ltd.		100,530		100,609
Ennoconn Corp.		4,000		38,072
Foxconn Technology Co., Ltd.		34,335		98,097
Getac Technology Corp.		98,000		60,318
Gigabyte Technology Co., Ltd.		18,000		21,923
HTC Corp.*		25,000		103,262
IEI Integration Corp.		20,034		35,782
Inventec Corp.		96,000		68,021
KONA I Co., Ltd.		1,266		41,334
Lenovo Group Ltd.		246,000		425,279
Lite-On Technology Corp.		91,730		116,212
Micro-Star International Co., Ltd.		23,000		27,562
Pegatron Corp.		65,000		193,773
Primax Electronics Ltd.		9,000		11,931
Qisda Corp.		83,000		36,451
Quanta Computer, Inc.		103,000		258,963
Quanta Storage, Inc.		62,000		66,604
Ritek Corp.*		205,000		20,951
Samsung Electronics Co., Ltd.		4,382		5,763,637
Samsung Electronics Co., Ltd. (Preference)		817		830,718
Sindoh Co., Ltd.		1,740		112,970
TCL Communication Technology Holdings Ltd.		178,000		190,145
TSC Auto ID Technology Co., Ltd.		3,000		25,664
Wistron Corp.		95,645		81,666
				10,203,164
Textiles, Apparel & Luxury Goods – 1.2%
361 Degrees International Ltd.		175,000		67,732
Aksa Akrilik Kimya Sanayii A/S		25,433		102,677
Alpargatas S.A. (Preference)		19,284		64,429
ANTA Sports Products Ltd.		32,000		70,513
Arvind Ltd.		14,306		57,233
Bata India Ltd.		1,012		16,239
Belle International Holdings Ltd.		181,000		232,813
Billion Industrial Holdings Ltd.		70,000		30,705

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)
Textiles, Apparel & Luxury Goods – (continued)
Bosideng International Holdings Ltd.		946,000	$	165,983
Boyner Perakende ve Tekstil Yatirimlari A/S*		415		9,897
CCC S.A.		506		26,708
China Dongxiang Group Co., Ltd.		237,000		58,095
China Lilang Ltd.		127,000		132,060
Citychamp Watch & Jewellery Group Ltd.		248,000		31,035
Cosmo Lady China Holdings Co., Ltd.(a) *		73,000		61,405
Daphne International Holdings Ltd.		292,000		81,371
Eclat Textile Co., Ltd.		5,382		72,402
Feng TAY Enterprise Co., Ltd.		17,305		107,076
Formosa Taffeta Co., Ltd.		23,000		27,411
Grendene S.A.		9,674		57,385
Guararapes Confeccoes S.A.		200		5,420
Handsome Co., Ltd.		910		29,966
Hansae Co., Ltd.		1,390		53,422
HOSA International Ltd.*		180,000		92,657
Huvis Corp.*		4,897		48,193
Lealea Enterprise Co., Ltd.*		3,150		1,147
LF Corp.		952		31,349
Li Ning Co., Ltd.*		155,833		86,449
Li Peng Enterprise Co., Ltd.*		94,083		34,867
LPP S.A.		35		74,188
Makalot Industrial Co., Ltd.		7,143		55,976
Nan Liu Enterprise Co., Ltd.		6,000		37,125
Nien Hsing Textile Co., Ltd.		17,546		16,443
Peak Sport Products Co., Ltd.		283,000		96,023
Pou Chen Corp.		93,000		130,727
Rajesh Exports Ltd.		29,345		107,604
Ruentex Industries Ltd.		17,140		42,142
Shenzhou International Group Holdings Ltd.		26,000		122,601
Shinkong Textile Co., Ltd.		15,000		19,738
Tainan Spinning Co., Ltd.		48,075		27,941
Taiwan Paiho Ltd.		24,000		65,278
Texhong Textile Group Ltd.		93,500		112,063


	Shares		Value
Textiles, Apparel & Luxury Goods – (continued)
Toung Loong Textile Manufacturing		7,000	$	27,771
XTEP International Holdings Ltd.		240,312		87,430
Youngone Corp.		640		39,284
Youngone Holdings Co., Ltd.		315		30,266
				2,949,239
Thrifts & Mortgage Finance – 0.6%
Dewan Housing Finance Corp. Ltd.		15,007		105,485
GRUH Finance Ltd.		12,575		48,882
Housing Development Finance Corp. Ltd.		58,655		1,080,475
Indiabulls Housing Finance Ltd.		6,896		64,454
LIC Housing Finance Ltd.		8,105		54,878
Malaysia Building Society Bhd		47,030		27,467
				1,381,641
Tobacco – 0.5%
British American Tobacco Malaysia Bhd		4,400		82,749
Eastern Tobacco		425		10,861
Gudang Garam Tbk PT		22,000		84,860
ITC Ltd.		75,093		381,111
KT&G Corp.		4,640		411,627
Souza Cruz S.A.		15,300		135,703
				1,106,911
Trading Companies & Distributors – 0.5%
Adani Enterprises Ltd.		6,485		68,837
AKR Corporindo Tbk PT		54,500		21,863
Barloworld Ltd.		8,015		63,752
CITIC Resources Holdings Ltd.*		808,000		144,897
Daewoo International Corp.		1,760		51,552
Hyundai Corp.		3,642		115,681
iMarketKorea, Inc.		1,530		39,035
Invicta Holdings Ltd.		10,014		61,083
LG International Corp.		9,252		355,149
Samsung C&T Corp.		5,247		279,971
SK Networks Co., Ltd.		5,207		38,616
Yinson Holdings Bhd		20,500		16,750
				1,257,186

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)
Transportation Infrastructure – 1.0%
Adani Ports & Special Economic Zone Ltd.		15,420	$	77,094
Airports of Thailand PCL (NVDR)		16,100		141,635
Arteris S.A.		2,800		7,469
Bangkok Expressway PCL (NVDR)		105,700		125,051
Beijing Capital International Airport Co., Ltd., Class H		54,000		57,615
CCR S.A.		36,100		199,215
China Merchants Holdings International Co., Ltd.		43,948		199,863
China Resources and Transportation Group Ltd.*		400,000		9,495
COSCO International Holdings Ltd.		96,000		56,229
COSCO Pacific Ltd.		84,553		132,865
EcoRodovias Infraestrutura e Logistica S.A.		27,280		80,683
Grupo Aeroportuario del Centro Norte Sab de CV*		22,600		112,729
Grupo Aeroportuario del Pacifico SAB de CV, Class B		31,900		226,838
Grupo Aeroportuario del Sureste SAB de CV, Class B		8,100		114,506
Gujarat Pipavav Port Ltd.*		28,094		98,018
IL&FS Transportation Networks Ltd.		29,862		79,268
International Container Terminal Services, Inc.		29,270		72,304
Jasa Marga Persero Tbk PT		69,500		33,242
Jiangsu Expressway Co., Ltd., Class H		40,000		55,114
Malaysia Airports Holdings Bhd		31,527		57,097
OHL Mexico SAB de CV*		27,500		55,337
Shenzhen International Holdings Ltd.		59,662		112,533
TAV Havalimanlari Holding A/S*		5,572		48,948
Tianjin Port Development Holdings Ltd.		128,400		41,413
Westports Holdings Bhd		27,200		34,368
Yuexiu Transport Infrastructure Ltd.		208,000		153,226


	Shares		Value
Transportation Infrastructure – (continued)
Zhejiang Expressway Co., Ltd., Class H		68,000	$	108,257
				2,490,412
Water Utilities – 0.4%
Aguas Andinas S.A., Class A		94,292		55,773
Beijing Enterprises Water Group Ltd.*		194,000		167,941
China Water Affairs Group Ltd.		134,000		85,056
Cia de Saneamento Basico do Estado de Sao Paulo		14,200		84,280
Cia de Saneamento de Minas Gerais-COPASA		19,000		116,444
CT Environmental Group Ltd.		39,400		55,406
Eastern Water Resources Development and Management PCL (NVDR)		49,700		16,735
Guangdong Investment Ltd.		88,000		131,469
Inversiones Aguas Metropolitanas S.A.		51,545		84,017
Kangda International Environmental Co., Ltd.(a) *		102,000		56,190
Manila Water Co., Inc.		73,600		40,907
TTW PCL (NVDR)		42,200		14,466
VA Tech Wabag Ltd.		4,000		44,081
				952,765
Wireless Telecommunication Services – 3.9%
Advanced Info Service PCL (NVDR)		41,600		302,867
America Movil SAB de CV		1,317,833		1,382,099
Axiata Group Bhd		110,100		208,360
Bharti Airtel Ltd.		26,540		159,244
Bharti Infratel Ltd.		18,381		116,135
China Mobile Ltd.		237,105		3,386,275
DiGi.Com Bhd		130,408		220,062
ENTEL Chile S.A.		2,178		24,632
Far EasTone Telecommunications Co., Ltd.		65,000		155,146
Global Telecom Holding SAE*		105,211		44,676
Globe Telecom, Inc.		1,060		51,941
Idea Cellular Ltd.		46,694		128,654
Indosat Tbk PT*		17,000		5,246
Intouch Holdings PCL (NVDR)		56,000		130,805
Maxis Bhd		79,608		155,126

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)
Wireless Telecommunication Services – (continued)
MegaFon OAO*		3,165	$	53,804
Mobile TeleSystems OJSC*		34,129		175,310
MTN Group Ltd.		64,809		1,295,513
Orascom Telecom Media and Technology Holding SAE*		65,405		8,229
Philippine Long Distance Telephone Co.		3,555		221,140
Reliance Communications Ltd.*		27,150		25,861
Sistema JSFC*		927,290		286,871
Sistema JSFC (GDR)		2,108		15,915
Taiwan Mobile Co., Ltd.		63,200		222,869
Tim Participacoes S.A.		36,000		115,837
Total Access Communication PCL (NVDR)		31,000		81,579
Tower Bersama Infrastructure Tbk PT		55,500		36,286
Turkcell Iletisim Hizmetleri A/S		31,990		142,303
Vodacom Group Ltd.		14,660		181,825
				9,334,610
Total Common Stocks (Cost $219,255,836)				236,760,683
	Principal Amount
CORPORATE BOND – 0.0%^†
Independent Power and Renewable Electricity Producers – 0.0%^†
NTPC Ltd. 8.49%, due 03/25/25		INR 49,126		9,885
Total Corporate Bond (Cost $–)				9,885
	No. of Rights
RIGHTS – 0.0%^†
Northam Platinum Ltd., expiring 05/15/15 at 4100.00 ZAR*		11,361		199
Palm Hills Developments SAE, expiring 05/21/15 at 2.00 EGP*		20,263		1,567
Total Rights (Cost $1,698)				1,766


	No. of Warrants		Value
WARRANTS – 0.0%^†
Srisawad Power 1979 PCL, expiring 12/12/15 at 60.00 THB* ^		2,080	$	—
Thoresen Thai Agencies PCL, expiring 02/28/19 at 18.50 THB*		6,335		465
Total Warrants (Cost $–)				465
Total Investment Securities (Cost $219,257,534) – 98.9%				236,772,799
Other assets less liabilities – 1.1%				2,533,169
NET ASSETS – 100.0%			$	239,305,968

*	Non-income producing security.

^	Security fair valued in accordance with procedures adopted by the Board of Trustees. At April 30, 2015, the value of these securities amounted to $1,984,360 or 0.83% of net assets.

^†	Amount represents less than 0.05%.

^(a)

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.

Percentages shown are based on Net Assets.

Abbreviations:

ADR – American Depositary Receipt

BRL – Brazilian Real

EGP – Egyptian Pound

GDR – Global Depositary Receipt

HKD – Hong Kong Dollar

INR – Indian Rupee

KRW – Korean Won

MXN – Mexican Peso

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

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			133

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

As of April 30, 2015, 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	$	38,276,159
Aggregate gross unrealized depreciation		(22,233,940	)
Net unrealized appreciation	$	16,042,219
Federal income tax cost of investments	$	220,730,580

Futures Contracts

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund had the following open long futures contracts as of April 30, 2015:


	Number of Contracts		Expiration Date		Notional Amount at Value		Unrealized Appreciation (Depreciation)
FTSE/JSE Top 40 Index Futures Contracts		5		06/18/15	$	203,008	$	8,780
Hang Seng Index Futures Contracts		3		05/28/15		543,887		4,092
MSCI Emerging Markets Mini Index Futures Contracts		23		06/19/15		1,194,505		46,036
MSCI Taiwan Index Futures Contracts		7		05/28/15		253,680		(3,456	)
S&P Toronto Stock Exchange 60^® Index Futures Contract		1		06/18/15		146,081		5,322
SGX S&P CNX Nifty Index Futures Contracts		9		05/28/15		148,617		(1,969	)
SPI 200^® Index Futures Contract		1		06/18/15		113,521		(939	)
							$	57,866

Forward Foreign Currency Contracts

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund had the following outstanding contracts as of April 30, 2015:


Contracts to Receive		Counterparty	In Exchange For			Receipt Date		Unrealized Appreciation (Depreciation)
BRL	361,800	Morgan Stanley		USD	110,000		06/17/15	$	8,797
HKD	3,984,403	Morgan Stanley		USD	513,050		06/17/15		991
INR	7,181,966	Morgan Stanley		USD	115,000		06/17/15		(3,015	)
INR	2,389,044	Citibank N.A.		USD	37,358		06/17/15		(107	)
KRW	79,026,000	Morgan Stanley		USD	69,208		06/17/15		4,417
MXN	488,153	UBS AG		USD	31,430		06/17/15		246
RUB	11,766,550	Morgan Stanley		USD	181,205		06/17/15		43,015
TWD	9,465,117	Morgan Stanley		USD	298,067		06/17/15		11,017
ZAR	26,054	Goldman Sachs		USD	2,066		06/17/15		97
USD	124,004	Morgan Stanley		BRL	411,360		06/17/15		(11,066	)
USD	200,000	Morgan Stanley		KRW	224,621,200		06/17/15		(9,267	)
USD	115,000	Morgan Stanley		RUB	7,104,700		06/17/15		(20,385	)
USD	125,000	Morgan Stanley		TWD	3,931,250		06/17/15		(3,375	)
								$	21,365

See Accompanying Notes to the Financial Statements.


134		FLEXSHARES SEMIANNUAL REPORT

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

FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund invested, as a percentage of net assets, in companies domiciled in the following countries as of April 30, 2015:


Brazil	7.3	%
Chile	1.3
China	26.4
Colombia	0.7
Czech Republic	0.1
Egypt	0.3
Hungary	0.4
India	6.7
Indonesia	2.3
Malaysia	3.3
Mexico	3.9
Morocco	0.1
Peru	0.3
Philippines	1.4
Poland	1.7
Russia	4.2
South Africa	7.1
South Korea	14.4
Taiwan	13.0
Thailand	2.5
Turkey	1.5
Other¹	1.1
	100.0	%

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

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			135

Schedule of Investments

FlexShares^® Morningstar Global Upstream Natural Resources Index Fund

April 30, 2015 (Unaudited)


	Shares		Value
COMMON STOCKS – 98.4%
Chemicals – 20.2%
Agrium, Inc.		455,676	$	47,025,387
CF Industries Holdings, Inc.		140,335		40,342,103
Incitec Pivot Ltd.		5,160,689		16,241,268
Israel Chemicals Ltd.		1,309,243		9,165,853
K+S AG (Registered)		505,206		16,598,304
Monsanto Co.		1,061,593		120,979,138
The Mosaic Co.		865,124		38,065,456
Potash Corp. of Saskatchewan, Inc.		2,502,916		81,415,802
The Scotts Miracle-Gro Co., Class A		117,221		7,561,927
Sociedad Quimica y Minera de Chile S.A. (ADR)		301,168		6,577,509
Sociedad Quimica y Minera de Chile S.A. (Preference), Class B		29,032		636,638
Syngenta AG (Registered)		282,321		94,739,804
Taiwan Fertilizer Co., Ltd.		2,452,000		4,515,536
Uralkali PJSC (GDR)		1,210,188		17,922,884
Yara International ASA		581,152		29,799,898
				531,587,507
Food Products – 7.6%
Archer-Daniels-Midland Co.		1,634,490		79,893,871
Bunge Ltd.		391,287		33,795,458
Charoen Pokphand Foods PCL		12,800		8,659
Charoen Pokphand Foods PCL (NVDR)		9,563,000		6,469,131
Charoen Pokphand Indonesia Tbk PT		24,104,600		5,271,864
CJ CheilJedang Corp.		29,718		11,601,663
Felda Global Ventures Holdings Bhd		5,262,500		3,058,648
Golden Agri-Resources Ltd.		24,765,000		7,852,705
GrainCorp Ltd., Class A		629,031		4,916,829
IOI Corp. Bhd		9,740,905		11,870,147
Kuala Lumpur Kepong Bhd		1,651,072		10,263,859
PPB Group Bhd		1,672,300		7,202,887
Tongaat Hulett Ltd.		300,482		3,329,488
Wilmar International Ltd.		6,197,826		15,254,171
				200,789,380


	Shares		Value
Household Durables – 0.1%
Sumitomo Forestry Co., Ltd.		330,200	$	3,846,401
Machinery – 0.2%
Kurita Water Industries Ltd.		202,010		5,266,743
Metals & Mining – 28.9%
Agnico Eagle Mines Ltd.		349,454		10,536,273
Alcoa, Inc.		2,010,918		26,986,520
Alumina Ltd.		4,678,934		5,701,837
Anglo American PLC		2,763,774		46,931,887
Antofagasta PLC		680,212		8,169,143
Barrick Gold Corp.		2,063,750		26,715,872
BHP Billiton Ltd.		5,147,818		129,809,112
Boliden AB		510,159		11,113,058
Eldorado Gold Corp.		988,949		4,906,983
First Quantum Minerals Ltd.		1,066,546		16,272,256
Franco-Nevada Corp.		235,371		12,172,251
Freeport-McMoRan, Inc.		1,966,341		45,756,755
Glencore PLC*		20,295,743		96,765,370
Goldcorp, Inc.		1,378,585		25,847,402
Grupo Mexico SAB de CV		7,821,808		24,115,828
Impala Platinum Holdings Ltd.*		1,038,479		5,732,582
KGHM Polska Miedz S.A.		288,925		10,122,902
MMC Norilsk Nickel OJSC (ADR)		1,045,997		19,643,824
Newcrest Mining Ltd.*		1,267,968		14,451,586
Newmont Mining Corp.		775,970		20,555,445
Norsk Hydro ASA		2,283,333		10,784,131
Randgold Resources Ltd.		133,731		10,201,572
Rio Tinto PLC		2,471,547		109,576,622
Royal Gold, Inc.		89,154		5,753,108
Sesa Sterlite Ltd. (ADR)		642,239		8,439,020
Silver Wheaton Corp.		516,470		10,148,182
Southern Copper Corp.		201,422		6,562,329
Sumitomo Metal Mining Co., Ltd.		830,031		12,259,378
Teck Resources Ltd., Class B		1,223,391		18,473,330
Yamana Gold, Inc.		1,479,296		5,630,179
				760,134,737

See Accompanying Notes to the Financial Statements.


136		FLEXSHARES SEMIANNUAL REPORT

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


	Shares		Value
COMMON STOCKS – (continued)
Multi-Utilities – 1.2%
Suez Environnement Co.		582,803	$	11,885,690
Veolia Environnement S.A.*		861,956		18,274,162
				30,159,852
Oil, Gas & Consumable Fuels – 31.6%
Anadarko Petroleum Corp.		236,093		22,216,351
Apache Corp.		198,120		13,551,408
BG Group PLC		1,796,288		32,642,269
BP PLC		9,047,978		65,364,960
California Resources Corp.		1,047		9,733
Canadian Natural Resources Ltd.		559,689		18,524,608
Cenovus Energy, Inc.		440,817		8,272,256
Chevron Corp.		845,312		93,880,351
China Petroleum & Chemical Corp., Class H		11,945,400		11,188,482
CNOOC Ltd.		9,500,112		16,104,897
ConocoPhillips Co.		538,226		36,556,310
Cosan S.A. Industria e Comercio		515,690		4,993,460
Devon Energy Corp.		163,449		11,148,856
Eni SpA		1,304,290		25,108,950
EOG Resources, Inc.		231,140		22,871,303
Exxon Mobil Corp.		1,423,162		124,341,664
Gazprom OAO (ADR)		3,497,207		20,717,454
Hess Corp.		123,825		9,522,143
Lukoil OAO (ADR)		267,462		13,694,513
Marathon Oil Corp.		350,012		10,885,373
Noble Energy, Inc.		175,006		8,876,304
Occidental Petroleum Corp.		354,965		28,432,697
PetroChina Co., Ltd., Class H		10,620,000		13,646,388
Petroleo Brasileiro S.A. (Preference)*		305,600		1,329,781
Petroleo Brasileiro S.A. (Preference) (ADR)*		1,314,939		11,413,671
Pioneer Natural Resources Co.		79,248		13,692,469
Repsol S.A.		469,555		9,689,234
Royal Dutch Shell PLC, Class A		1,893,697		60,200,634
Sasol Ltd.		341,757		13,738,425
Statoil ASA		642,239		13,551,324


	Shares		Value
Oil, Gas & Consumable Fuels – (continued)
Suncor Energy, Inc.		792,480	$	25,706,121
TOTAL S.A.		1,040,130		56,510,124
Woodside Petroleum Ltd.		391,287		10,817,398
				829,199,911
Paper & Forest Products – 2.8%
Boise Cascade Co.*		67,691		2,348,878
Canfor Corp.*		148,590		2,933,157
Duratex S.A.		638,669		1,812,265
Interfor Corp.*		120,523		1,718,417
International Paper Co.		645,541		34,678,463
Louisiana-Pacific Corp.*		209,677		3,195,478
Stella-Jones, Inc.		74,295		2,667,566
UPM-Kymmene Oyj		929,513		16,883,781
West Fraser Timber Co., Ltd.		128,778		6,600,238
Western Forest Products, Inc.		737,997		1,114,992
				73,953,235
Real Estate Investment Trusts (REITs) – 1.7%
Plum Creek Timber Co., Inc.		285,623		12,053,291
Rayonier, Inc.		257,556		6,590,858
Weyerhaeuser Co.		810,641		25,543,298
				44,187,447
Trading Companies & Distributors – 0.4%
Noble Group Ltd.		14,693,931		9,595,901
Water Utilities – 3.7%
Aguas Andinas S.A., Class A		5,984,901		3,540,002
American States Water Co.		77,597		2,978,949
American Water Works Co., Inc.		368,173		20,072,792
Aqua America, Inc.		345,059		9,254,482
Cia de Saneamento Basico do Estado de Sao Paulo		2,418		14,351
Cia de Saneamento Basico do Estado de Sao Paulo (ADR)		938,964		5,530,498
Cia de Saneamento de Minas Gerais-COPASA		13,772		84,403
Inversiones Aguas Metropolitanas S.A.		997,204		1,625,417
Manila Water Co., Inc.		2,641,600		1,468,215
Pennon Group PLC		759,470		10,013,851

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			137

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


	Shares		Value
COMMON STOCKS – (continued)
Water Utilities – (continued)
Severn Trent PLC		549,783	$	17,953,679
TTW PCL (NVDR)		3,302,000		1,131,885
United Utilities Group PLC		1,512,316		22,566,541
				96,235,065
Total Common Stocks (Cost $2,815,330,958)				2,584,956,179

Total Investment Securities (Cost $2,815,330,958) – 98.4%				2,584,956,179
Other assets less liabilities –1.6%				41,847,762
NET ASSETS – 100.0%			$	2,626,803,941

*	Non-income producing security.

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

NOK – Norwegian Krone

NVDR – Non-Voting Depositary Receipt

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, 2015, 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	$	147,068,410
Aggregate gross unrealized depreciation		(379,511,447	)
Net unrealized depreciation	$	(232,443,037	)
Federal income tax cost of investments	$	2,817,399,216

Futures Contracts

FlexShares^® Morningstar Global Upstream Natural Resources Index Fund had the following open long futures contracts as of April 30, 2015:


	Number of Contracts		Expiration Date		Notional Amount at Value		Unrealized Appreciation (Depreciation)
E-mini S&P 500^® Index Futures Contracts		72		06/19/15	$	7,484,040	$	81,417
EURO STOXX 50^® Index Futures Contracts		43		06/19/15		1,719,193		(2,399	)
FTSE 100^® Index Futures Contracts		70		06/19/15		7,453,698		218,832
FTSE/JSE Top 40 Index Futures Contracts		35		06/18/15		1,421,059		55,746
Hang Seng Index Futures Contracts		5		05/28/15		906,478		6,819
MSCI Emerging Markets Mini Index Futures Contracts		75		06/19/15		3,895,125		331,333
S&P Toronto Stock Exchange 60^® Index Futures Contracts		86		06/18/15		12,562,923		404,506
SPI 200^® Index Futures Contracts		26		06/18/15		2,951,542		(31,268	)
							$	1,064,986

See Accompanying Notes to the Financial Statements.


138		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, 2015:


Contracts to Receive		Counterparty	In Exchange For			Receipt Date		Unrealized Appreciation (Depreciation)
AUD	813,295	Morgan Stanley		USD	619,316		06/17/15	$	20,558
CAD	4,541,800	Morgan Stanley		USD	3,553,318		06/17/15		194,042
CHF	2,223,839	Bank of New York		USD	2,250,000		06/17/15		127,539
EUR	706,774	Morgan Stanley		USD	748,699		06/17/15		43,734
EUR	1,311,079	Morgan Stanley		USD	1,400,000		06/17/15		69,981
GBP	1,603,850	Morgan Stanley		USD	2,373,345		06/17/15		90,598
KRW	144,666,700	Morgan Stanley		USD	126,693		06/17/15		8,085
USD	330,233	Morgan Stanley		BRL	1,095,480		06/17/15		(29,469	)
USD	1,300,000	Goldman Sachs		CAD	1,592,972		06/17/15		(14,334	)
USD	1,350,000	Bank of Montreal		CHF	1,354,927		06/17/15		(98,573	)
USD	1,875,744	UBS AG		CHF	1,883,675		06/17/15		(138,120	)
USD	550,000	Bank of Montreal		GBP	369,389		06/17/15		(17,480	)
USD	1,500,000	Bank of Montreal		GBP	1,014,068		06/17/15		(57,881	)
USD	412,399	Morgan Stanley		HKD	3,202,734		06/17/15		(796	)
USD	276,874	Citibank N.A.		INR	17,705,910		06/17/15		793
USD	475,000	Bank of Montreal		JPY	57,552,425		06/17/15		(6,166	)
USD	1,260,401	Morgan Stanley		JPY	152,687,427		06/17/15		(16,139	)
USD	571,563	Morgan Stanley		NOK	4,722,683		06/17/15		(54,346	)
USD	156,413	Morgan Stanley		RUB	10,156,665		06/17/15		(37,130	)
USD	516,115	Morgan Stanley		SGD	719,181		06/17/15		(26,387	)
USD	651,832	Goldman Sachs		ZAR	8,218,280		06/17/15		(30,424	)
								$	28,085

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			139

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, 2015:


Australia	6.9	%
Brazil	1.0
Canada	12.4
Chile	0.5
China	1.6
Finland	0.6
France	3.3
Germany	0.6
India	0.3
Indonesia	0.2
Israel	0.4
Italy	1.0
Japan	0.8
Malaysia	1.2
Mexico	0.9
Norway	2.1
Philippines	0.1
Poland	0.4
Russia	2.7
Singapore	1.2
South Africa	0.9
South Korea	0.4
Spain	0.4
Sweden	0.4
Switzerland	3.6
Taiwan	0.2
Thailand	0.3
United Kingdom	18.3
United States	35.7
Other¹	1.6
	100.0	%

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

See Accompanying Notes to the Financial Statements.


140		FLEXSHARES SEMIANNUAL REPORT

Schedule of Investments

FlexShares^® STOXX^® Global Broad Infrastructure Index Fund

April 30, 2015 (Unaudited)


	Shares		Value
COMMON STOCKS – 99.0%
Air Freight & Logistics – 3.3%
bpost S.A.		23,359	$	669,424
CTT-Correios de Portugal S.A.		25,986		293,370
Deutsche Post AG (Registered)		224,076		7,420,916
Oesterreichische Post AG		7,526		365,540
PostNL N.V.*		100,820		504,654
Royal Mail PLC		133,480		959,371
Singapore Post Ltd.		383,400		552,863
				10,766,138
Commercial Services & Supplies – 2.2%
China Everbright International Ltd.		568,000		1,064,018
Clean Harbors, Inc.*		4,402		243,210
Cleanaway Co., Ltd.		14,000		86,854
Daiseki Co., Ltd.		14,200		253,932
Koentec Co., Ltd.		2,766		7,870
Progressive Waste Solutions Ltd.		28,684		825,768
Republic Services, Inc.		24,282		986,578
Stericycle, Inc.*		8,094		1,079,982
Transpacific Industries Group Ltd.		405,278		244,542
Waste Connections, Inc.		11,712		555,266
Waste Management, Inc.		41,500		2,055,495
				7,403,515
Construction & Engineering – 0.3%
Fomento de Construcciones y Contratas S.A.*		33,938		436,195
Promotora y Operadora de Infraestructura SAB de CV*		42,600		489,178
				925,373
Diversified Financial Services – 0.1%
Metro Pacific Investments Corp.		2,982,000		303,356
Diversified Telecommunication Services – 16.1%
AT&T, Inc.		352,444		12,208,660
BCE, Inc.		57,033		2,504,508
BT Group PLC		556,298		3,896,165
CenturyLink, Inc.		38,908		1,399,132
Chunghwa Telecom Co., Ltd.		233,304		754,166
Chunghwa Telecom Co., Ltd. (ADR)		1,984		63,845


	Shares		Value
Diversified Telecommunication Services – (continued)
Deutsche Telekom AG (Registered)		214,605	$	3,961,836
Nippon Telegraph & Telephone Corp.		50,900		3,438,419
Swisscom AG (Registered)		1,562		928,631
Telecom Italia SpA*		730,306		866,627
Telefonica S.A.		289,680		4,427,556
Telstra Corp. Ltd.		846,604		4,160,138
Verizon Communications, Inc.		283,432		14,296,310
				52,905,993
Electric Utilities – 10.7%
American Electric Power Co., Inc.		42,316		2,406,511
Duke Energy Corp.		61,486		4,769,469
Edison International		28,684		1,748,003
Enel SpA		900,280		4,273,314
Exelon Corp.		74,408		2,531,360
Iberdrola S.A.		808,832		5,417,175
NextEra Energy, Inc.		38,482		3,883,988
PPL Corp.		58,078		1,976,394
The Southern Co.		77,390		3,428,377
SSE PLC		141,148		3,355,585
Xcel Energy, Inc.		45,724		1,550,501
				35,340,677
Energy Equipment & Services – 0.0%^†
Newalta Corp.		12,378		167,901
Gas Utilities – 1.3%
APA Group		159,750		1,209,627
Enagas S.A.		33,512		1,033,240
Petronas Gas Bhd		85,200		543,519
Snam SpA		309,276		1,613,580
				4,399,966
Health Care Providers & Services – 3.5%
Bangkok Dusit Medical Services PCL (NVDR)		2,176,800		1,333,880
Community Health Systems, Inc.*		10,508		564,069
HCA Holdings, Inc.*		30,104		2,227,997

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			141

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


	Shares		Value
COMMON STOCKS – (continued)
Health Care Providers & Services – (continued)
Healthscope Ltd.		243,104	$	544,565
HealthSouth Corp.		9,798		443,065
Life Healthcare Group Holdings Ltd.		232,454		793,437
LifePoint Hospitals, Inc.*		5,112		382,787
Mediclinic International Ltd.		111,470		1,176,033
Netcare Ltd.		304,538		1,061,387
Ramsay Health Care Ltd.		32,555		1,607,171
Tenet Healthcare Corp.*		8,378		400,971
Universal Health Services, Inc., Class B		8,852		1,035,241
				11,570,603
Industrial Conglomerates – 0.1%
Beijing Enterprises Holdings Ltd.		45,500		416,777
Internet Software & Services – 0.4%
Equinix, Inc. (REIT)		3,869		990,193
Telecity Group PLC		13,916		190,009
				1,180,202
Media – 5.8%
Comcast Corp., Class A		148,912		8,601,157
DIRECTV*		31,753		2,880,156
DISH Network Corp., Class A*		15,336		1,037,634
Liberty Global PLC*		44,020		2,220,809
SES S.A. (FDR)		22,294		780,673
Sirius XM Holdings, Inc.*		161,464		637,783
Time Warner Cable, Inc.		19,475		3,028,752
				19,186,964
Multi-Utilities – 10.4%
Centrica PLC		707,018		2,774,946
Consolidated Edison, Inc.		24,708		1,520,777
Dominion Resources, Inc.		49,984		3,582,853
E.ON SE		276,332		4,322,628
GDF Suez		227,200		4,634,792
National Grid PLC		543,860		7,346,479
PG&E Corp.		41,890		2,216,819
Public Service Enterprise Group, Inc.		45,452		1,888,076
Sempra Energy		21,381		2,270,021
Suez Environnement Co.		72,420		1,476,934


	Shares		Value
Multi-Utilities – (continued)
Veolia Environnement S.A.*		102,950	$	2,182,623
				34,216,948
Oil, Gas & Consumable Fuels – 8.7%
Enbridge, Inc.		117,860		6,136,018
Inter Pipeline Ltd.		46,008		1,200,291
Keyera Corp.		23,856		836,462
Kinder Morgan, Inc.		128,794		5,531,702
Koninklijke Vopak N.V.		9,514		499,357
ONEOK, Inc.		19,028		915,247
Pembina Pipeline Corp.		47,286		1,639,248
Plains GP Holdings LP, Class A		18,034		530,200
Spectra Energy Corp.		58,220		2,168,695
Targa Resources Corp.		4,857		509,839
TransCanada Corp.		98,690		4,562,757
Veresen, Inc.		40,470		606,089
The Williams Cos., Inc.		67,166		3,438,228
				28,574,133
Real Estate Investment Trusts (REITs) – 1.8%
American Tower Corp.		28,116		2,657,806
Corrections Corp. of America		11,076		407,486
Crown Castle International Corp.		22,891		1,912,085
Digital Realty Trust, Inc.		9,624		610,258
DuPont Fabros Technology, Inc.		4,828		150,392
The GEO Group, Inc.		6,248		243,672
				5,981,699
Road & Rail – 18.4%
Aurizon Holdings Ltd.		493,450		1,887,662
Canadian National Railway Co.		171,536		11,032,119
Canadian Pacific Railway Ltd.		39,334		7,469,969
Central Japan Railway Co.		48,200		8,641,523
ComfortDelGro Corp. Ltd.		511,200		1,184,843
CSX Corp.		88,892		3,208,112
East Japan Railway Co.		92,600		8,198,354
Kansas City Southern		9,372		960,536
Keisei Electric Railway Co., Ltd.		142,000		1,686,154
MTR Corp. Ltd.		360,990		1,779,067
Norfolk Southern Corp.		27,122		2,735,254
Tobu Railway Co., Ltd.		233,000		1,111,749
Union Pacific Corp.		78,242		8,311,648
West Japan Railway Co.		44,900		2,491,693
				60,698,683

See Accompanying Notes to the Financial Statements.


142		FLEXSHARES SEMIANNUAL REPORT

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


	Shares		Value
COMMON STOCKS – (continued)
Transportation Infrastructure – 6.9%
Abertis Infraestructuras S.A.		84,064	$	1,550,969
Aeroports de Paris		8,260		1,016,743
Airports of Thailand PCL (NVDR)		113,800		1,001,122
Atlantia SpA		97,838		2,756,158
Auckland International Airport Ltd.		220,973		775,576
CCR S.A.		198,800		1,097,061
China Merchants Holdings International Co., Ltd.		221,277		1,006,304
COSCO Pacific Ltd.		392,435		616,664
Flughafen Zuerich AG (Registered)		994		773,960
Groupe Eurotunnel SE (Registered)		115,446		1,849,244
Grupo Aeroportuario del Sureste SAB de CV, Class B		52,560		743,017
International Container Terminal Services, Inc.		433,100		1,069,863
Japan Airport Terminal Co., Ltd.		17,500		992,939
Jiangsu Expressway Co., Ltd., Class H		284,000		391,312
Sydney Airport		536,192		2,279,546
Tianjin Port Development Holdings Ltd.		568,000		183,199
Transurban Group		465,839		3,644,911
Westshore Terminals Investment Corp.		14,058		370,354
Zhejiang Expressway Co., Ltd., Class H		284,000		452,134
				22,571,076
Water Utilities – 3.1%
Aguas Andinas S.A., Class A		768,788		454,730
American Water Works Co., Inc.		16,580		903,942
Aqua America, Inc.		13,206		354,185
Beijing Enterprises Water Group Ltd.*		1,136,000		983,410
California Water Service Group		4,544		108,465
China Water Affairs Group Ltd.		284,000		180,267
Cia de Saneamento Basico do Estado de Sao Paulo		89,200		529,421
Cia de Saneamento de Minas Gerais-COPASA		14,200		87,026


	Shares		Value
Water Utilities – (continued)
Guangdong Investment Ltd.		568,000	$	848,576
Manila Water Co., Inc.		312,400		173,634
Pennon Group PLC		94,239		1,242,571
Severn Trent PLC		55,948		1,827,034
United Utilities Group PLC		163,442		2,438,856
				10,132,117
Wireless Telecommunication Services – 5.9%
China Mobile Ltd.		367,500		5,248,544
KDDI Corp.		127,800		3,032,941
SBA Communications Corp., Class A*		9,230		1,069,019
SoftBank Corp.		65,200		4,088,961
Tower Bersama Infrastructure Tbk PT		198,800		129,977
Vodafone Group PLC		1,632,858		5,785,178
				19,354,620
Total Common Stocks (Cost $306,415,076)				326,096,741

Total Investment Securities (Cost $306,415,076) – 99.0%				326,096,741
Other assets less liabilities – 1.0%				3,188,149
NET ASSETS – 100.0%			$	329,284,890

*	Non-income producing security.

^†	Amount represents less than 0.05%.

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

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

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			143

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

USD – US Dollar

ZAR – South African Rand

As of April 30, 2015, 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	$	25,251,583
Aggregate gross unrealized depreciation		(5,863,459	)
Net unrealized appreciation	$	19,388,124
Federal income tax cost of investments	$	306,708,617

Futures Contracts

FlexShares^® STOXX^® Global Broad Infrastructure Index Fund had the following open long futures contracts as of April 30, 2015:


	Number of Contracts		Expiration Date		Notional Amount at Value		Unrealized Appreciation (Depreciation)
E-mini S&P^® 500 Index Futures Contracts		14		06/19/15	$	1,455,230	$	21,355
EURO STOXX 50^® Index Futures Contracts		16		06/19/15		639,700		(4,785	)
FTSE 100^® Index Futures Contracts		3		06/19/15		319,444		5,886
Nikkei 225 Index Futures Contracts		5		06/11/15		408,206		7,482
S&P Toronto Stock Exchange 60^® Index Futures Contracts		2		06/18/15		292,161		4,510
							$	34,448

Forward Foreign Currency Contracts

FlexShares^® STOXX^® Global Broad Infrastructure Index Fund had the following outstanding contracts as of April 30, 2015:


Contracts to Receive		Counterparty	In Exchange For			Receipt Date		Unrealized Appreciation (Depreciation)
AUD	163,000	Morgan Stanley		USD	124,123		06/17/15	$	4,120
CAD	202,425	Morgan Stanley		USD	158,369		06/17/15		8,649
EUR	64,983	Morgan Stanley		USD	68,838		06/17/15		4,021
HKD	349,130	Morgan Stanley		USD	44,955		06/17/15		87
INR	40,593,722	Morgan Stanley		USD	650,000		06/17/15		(17,038	)
INR	64,245,563	Citibank N.A.		USD	1,004,633		06/17/15		(2,878	)
JPY	77,541,454	Morgan Stanley		USD	640,088		06/17/15		8,196
KRW	25,340,480	Morgan Stanley		USD	22,192		06/17/15		1,416
RUB	19,950,058	Morgan Stanley		USD	307,231		06/17/15		72,931
USD	108,221	Morgan Stanley		BRL	359,000		06/17/15		(9,658	)
USD	116,507	UBS AG		CHF	117,000		06/17/15		(8,579	)
USD	85,619	Morgan Stanley		GBP	57,859		06/17/15		(3,268	)
USD	630,000	Morgan Stanley		JPY	74,927,752		06/17/15		3,568
USD	90,423	Morgan Stanley		SGD	126,000		06/17/15		(4,623	)
USD	116,469	Goldman Sachs		ZAR	1,468,444		06/17/15		(5,436	)
								$	51,508

See Accompanying Notes to the Financial Statements.


144		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, 2015:


Australia	4.7	%
Austria	0.1
Belgium	0.2
Brazil	0.5
Canada	11.4
Chile	0.1
China	3.4
France	3.4
Germany	4.8
Hong Kong	0.6
Indonesia	0.0	^†
Italy	2.9
Japan	10.3
Luxembourg	0.2
Malaysia	0.2
Mexico	0.4
Netherlands	0.3
New Zealand	0.2
Philippines	0.5
Portugal	0.1
Singapore	0.5
South Africa	0.9
South Korea	0.0	^†
Spain	3.9
Switzerland	0.5
Taiwan	0.3
Thailand	0.7
United Kingdom	9.1
United States	38.8
Other¹	1.0
	100.0	%

^†	Amount represents less than 0.05%.

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

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			145

Schedule of Investments

FlexShares^® Global Quality Real Estate Index Fund

April 30, 2015 (Unaudited)


	Shares		Value
COMMON STOCKS – 98.7%
Capital Markets – 0.4%
HFF, Inc., Class A		2,640	$	103,461
Tricon Capital Group, Inc.		25,888		235,744
				339,205
Diversified Financial Services – 0.1%
Corp. Financiera Alba S.A.		1,920		97,762
Hotels, Restaurants & Leisure – 0.2%
Kyoritsu Maintenance Co., Ltd.		4,380		211,918
Household Durables – 2.0%
Barratt Developments PLC		171,488		1,369,060
Misawa Homes Co., Ltd.		22,400		198,786
Sumitomo Forestry Co., Ltd.		20,200		235,304
				1,803,150
Real Estate Investment Trusts (REITs) – 70.4%
Acadia Realty Trust		9,824		303,562
Advance Residence Investment Corp.		192		452,123
AIMS AMP Capital Industrial REIT		1,900		2,195
Alexander’s, Inc.		384		165,588
Alexandria Real Estate Equities, Inc.		12,096		1,117,428
American Tower Corp.		2,895		273,664
ANF Immobilier		2,080		54,539
Apartment Investment & Management Co., Class A		25,376		957,436
Ashford Hospitality Trust, Inc.		1,061		9,613
Associated Estates Realty Corp.		10,848		309,168
AvalonBay Communities, Inc.		22,688		3,728,546
Big Yellow Group PLC		24,736		253,927
BioMed Realty Trust, Inc.		34,688		719,776
Boardwalk Real Estate Investment Trust		5,248		263,256
The British Land Co. PLC		8,288		106,032
BWP Trust		93,280		223,667
Canadian Apartment Properties REIT		12,000		288,991
CapitaCommercial Trust		352,000		450,447
CapitaRetail China Trust		181,200		237,350
Chesapeake Lodging Trust		8,288		263,144
Columbia Property Trust, Inc.		15,680		411,286


	Shares		Value
Real Estate Investment Trusts (REITs) – (continued)
Corrections Corp. of America		18,144	$	667,518
Daiwa House REIT Investment Corp.		8		35,698
Daiwa Office Investment Corp.		37		195,095
Derwent London PLC		16,608		877,969
DiamondRock Hospitality Co.		31,584		428,279
Digital Realty Trust, Inc.		192		12,175
Dream Global Real Estate Investment Trust		28,224		235,579
Duke Realty Corp.		59,744		1,183,529
DuPont Fabros Technology, Inc.		10,336		321,966
EPR Properties		9,024		520,414
Equity Lifestyle Properties, Inc.		13,248		699,759
Equity Residential		38,656		2,855,132
Extra Space Storage, Inc.		18,400		1,213,112
Federation Centres		251,776		585,836
FelCor Lodging Trust, Inc.		23,136		257,041
First Real Estate Investment Trust		218,400		239,085
Fonciere des Murs S.C.A.*		7,936		224,985
Fonciere Des Regions		4,453		421,290
Frasers Centrepoint Trust		89,600		140,026
Frasers Commercial Trust		100,617		114,704
The GEO Group, Inc.		11,744		458,016
Getty Realty Corp.		9,792		170,087
Global One Real Estate Investment Corp.		64		224,885
The GPT Group		293,984		1,036,503
Granite Real Estate Investment Trust		6,976		240,971
Great Portland Estates PLC		59,840		733,374
H&R Real Estate Investment Trust		15,584		297,849
Hankyu REIT, Inc.		192		244,512
Hansteen Holdings PLC		101,504		183,752
Highwoods Properties, Inc.		4,843		208,443
Hospitality Properties Trust		24,576		739,246
Host Hotels & Resorts, Inc.		121,464		2,446,285
Hudson Pacific Properties, Inc.		11,136		335,862
Investa Office Fund		103,520		303,743
Iron Mountain, Inc.		27,776		957,994
Japan Hotel REIT Investment Corp.		128		94,446
Japan Logistics Fund, Inc.		160		339,601
Japan Rental Housing Investments, Inc.		288		203,359

See Accompanying Notes to the Financial Statements.


146		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Global Quality Real Estate Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Real Estate Investment Trusts (REITs) – (continued)
Kenedix Residential Investment Corp.		96	$	279,168
Kilroy Realty Corp.		14,656		1,040,429
Kimco Realty Corp.		72,416		1,745,226
Land Securities Group PLC		130,624		2,507,198
LaSalle Hotel Properties		17,056		625,785
The Link REIT		385,000		2,391,613
LTC Properties, Inc.		6,176		268,409
Mapletree Commercial Trust		240,000		279,038
Mapletree Greater China Commercial Trust		370,400		296,421
Mapletree Industrial Trust		221,200		268,870
Mapletree Logistics Trust		164,200		152,479
Mercialys S.A.		12,832		318,205
National Health Investors, Inc.		4,704		313,851
National Retail Properties, Inc.		20,896		802,406
Nippon Prologis REIT, Inc.		258		558,386
Omega Healthcare Investors, Inc.		2,772		100,041
Parkway Life Real Estate Investment Trust		45,800		84,716
Pebblebrook Hotel Trust		11,872		509,784
Piedmont Office Realty Trust, Inc., Class A		1,827		31,936
Post Properties, Inc.		8,736		499,437
Precinct Properties New Zealand Ltd.		158,048		138,981
PS Business Parks, Inc.		2,944		224,774
Public Storage		22,272		4,185,132
Regency Centers Corp.		15,424		968,319
Retail Opportunity Investments Corp.		1,578		26,479
RioCan Real Estate Investment Trust		25,056		617,686
RLJ Lodging Trust		19,040		564,917
Ryman Hospitality Properties, Inc.		990		57,064
Scentre Group		859,488		2,535,425
Select Income REIT		8,736		202,588
Shaftesbury PLC		48,800		629,945
Simon Property Group, Inc.		10,208		1,852,650
SL Green Realty Corp.		16,832		2,059,563
Societe Fonciere Lyonnaise S.A.		2,176		101,446
Sovran Self Storage, Inc.		5,568		486,309
Starhill Global REIT		140,800		93,013
Strategic Hotels & Resorts, Inc.*		8,671		101,451


	Shares		Value
Real Estate Investment Trusts (REITs) – (continued)
Sunlight Real Estate Investment Trust		416,000	$	210,384
Sunstone Hotel Investors, Inc.		34,703		540,673
United Urban Investment Corp.		160		254,433
Universal Health Realty Income Trust		3,840		190,694
Urban Edge Properties		2,140		48,428
Urstadt Biddle Properties, Inc., Class A		9,184		190,568
Vornado Realty Trust		4,106		424,930
Weingarten Realty Investors		20,224		662,538
Wereldhave N.V.		377		24,172
Weyerhaeuser Co.		89,440		2,818,254
Workspace Group PLC		21,152		274,345
				64,598,417
Real Estate Management & Development – 25.3%
Airport City Ltd.*		11,648		123,028
Allreal Holding AG (Registered)*		2,144		306,874
CA Immobilien Anlagen AG*		12,448		226,665
CBRE Group, Inc., Class A*		4,554		174,600
Chinese Estates Holdings Ltd.		65,500		203,231
Citycon Oyj*		9,889		32,069
CK Hutchison Holdings Ltd.		227,000		4,934,687
Daejan Holdings PLC		1,312		109,380
Daibiru Corp.		16,000		158,302
Daito Trust Construction Co., Ltd.		9,900		1,156,117
Deutsche Annington Immobilien SE		35,867		1,208,335
Deutsche Wohnen AG		25,760		676,893
Fabege AB		7,917		120,694
Far East Consortium International Ltd.		297,664		141,321
First Capital Realty, Inc.		18,880		311,744
Forest City Enterprises, Inc., Class A*		25,568		607,496
Frasers Centrepoint Ltd.		25,800		36,911
Gazit-Globe Ltd.		4,192		55,462
Goldcrest Co., Ltd.		7,200		142,291
Heiwa Real Estate Co., Ltd.		9,600		131,000
HKR International Ltd.		204,800		116,256
Ho Bee Land Ltd.		54,400		95,284
Industrial Buildings Corp. Ltd.		61,440		67,184
Intershop Holding AG		448		191,269
Jones Lang LaSalle, Inc.		7,840		1,301,910
Klovern AB, Class A		12,586		14,093
Klovern AB, Class B		26,048		28,854
Kowloon Development Co., Ltd.		5,000		6,399

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			147

FlexShares^® Global Quality Real Estate Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Real Estate Management & Development – (continued)
Kungsleden AB		13,618	$	99,073
Lend Lease Group		91,936		1,163,858
Leopalace21 Corp.*		51,200		296,923
Melcor Developments Ltd.		6,976		100,270
Mobimo Holding AG (Registered)*		1,024		227,993
Morguard Corp.		544		69,623
Nitsba Holdings 1995 Ltd.*		7,680		130,193
Nomura Real Estate Holdings, Inc.		17,400		355,067
Norstar Holdings, Inc.		3,104		84,674
NTT Urban Development Corp.		25,600		268,900
PATRIZIA Immobilien AG*		9,600		189,543
PSP Swiss Property AG (Registered)*		7,232		673,103
Quintain Estates & Development PLC*		76,960		113,538
Relo Holdings, Inc.		3,400		280,137
Sagax AB, Class B		12,736		88,081
Sim Lian Group Ltd.		102,400		66,099
Sinarmas Land Ltd.		277,200		147,541
Sponda Oyj		43,008		187,758
The St. Joe Co.*		10,592		184,830
Sumitomo Realty & Development Co., Ltd.		32,000		1,241,280
Swire Pacific Ltd., Class A		96,000		1,299,214
Swire Pacific Ltd., Class B		162,500		411,326
Swire Properties Ltd.		64,000		220,458
TAI Cheung Holdings Ltd.		128,000		112,293
Takara Leben Co., Ltd.		38,400		235,849
Tokyu Fudosan Holdings Corp.		22,400		166,966
The Unite Group PLC		23,360		215,032
UOL Group Ltd.		95,306		574,189
Wallenstam AB, Class B		3,388		57,046
Wheelock & Co., Ltd.		160,000		904,124
Wing Tai Holdings Ltd.		166,400		246,230
Yanlord Land Group Ltd.		163,200		148,470
				23,238,030


	Shares		Value
Road & Rail – 0.3%
Sotetsu Holdings, Inc.		66,000	$	313,813
Total Common Stocks (Cost $85,102,867)				90,602,295

Total Investment Securities (Cost $85,102,867) – 98.7%				90,602,295
Other assets less liabilities – 1.3%				1,191,918
NET ASSETS – 100.0%			$	91,794,213

*	Non-income producing security.

Percentages shown are based on Net Assets.

Abbreviations:

AUD – Australian Dollar

CAD – Canadian Dollar

CHF – Swiss Franc

EUR – Euro

GBP – British Pound

HKD – Hong Kong Dollar

ILS – Israeli Shekel

JPY – Japanese Yen

REIT – Real Estate Investment Trust

SEK – Swedish Krona

SGD – Singapore Dollar

USD – US Dollar

As of April 30, 2015, 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	$	6,156,798
Aggregate gross unrealized depreciation		(807,667	)
Net unrealized appreciation	$	5,349,131
Federal income tax cost of investments	$	85,253,164

See Accompanying Notes to the Financial Statements.


148		FLEXSHARES SEMIANNUAL REPORT

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, 2015:


	Number of Contracts		Expiration Date		Notional Amount at Value		Unrealized Appreciation (Depreciation)
E-mini MSCI EAFE Index Futures Contract		1		06/19/15	$	94,710	$	4,735
E-mini S&P^® 500 Index Futures Contracts		7		06/19/15		727,615		8,223
EURO STOXX 50^® Index Futures Contract		1		06/19/15		39,981		28
FTSE 100^® Index Futures Contract		1		06/19/15		106,482		3,730
Nikkei 225 Index Futures Contracts		2		06/11/15		163,282		4,457
SPI 200^® Index Futures Contract		1		06/18/15		113,521		(3,579	)
							$	17,594

Forward Foreign Currency Contracts

FlexShares^® Global Quality Real Estate Index Fund had the following outstanding contracts as of April 30, 2015:


Contracts to Receive		Counterparty	In Exchange For			Receipt Date		Unrealized Appreciation (Depreciation)
CAD	153,148	Morgan Stanley		USD	119,817		06/17/15	$	6,543
CHF	37,352	UBS AG		USD	37,195		06/17/15		2,739
EUR	117,527	Bank of Montreal		USD	125,000		06/17/15		6,771
GBP	29,122	Morgan Stanley		USD	43,094		06/17/15		1,645
HKD	613,090	Morgan Stanley		USD	78,944		06/17/15		152
ILS	110,844	Citibank N.A.		USD	27,662		06/17/15		1,030
JPY	13,571,965	Morgan Stanley		USD	112,034		06/17/15		1,435
SGD	179,895	Morgan Stanley		USD	129,101		06/17/15		6,600
USD	9,138	Morgan Stanley		AUD	12,000		06/17/15		(303	)
USD	225,988	Morgan Stanley		EUR	213,333		06/17/15		(13,201	)
USD	100,000	Citibank N.A.		HKD	776,138		06/17/15		(132	)
USD	332,873	Morgan Stanley		SEK	2,872,953		06/17/15		(11,482	)
								$	1,797

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			149

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, 2015:


Australia	6.4	%
Austria	0.3
Canada	2.9
Finland	0.2
France	1.2
Germany	2.3
Hong Kong	11.9
Israel	0.5
Japan	9.0
Netherlands	0.0	^†
New Zealand	0.2
Singapore	4.0
Spain	0.1
Sweden	0.5
Switzerland	1.5
United Kingdom	8.0
United States	49.7
Other¹	1.3
	100.0	%

^†	Amount represents less than 0.05%.

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

See Accompanying Notes to the Financial Statements.


150		FLEXSHARES SEMIANNUAL REPORT

Schedule of Investments

FlexShares^® Quality Dividend Index Fund

April 30, 2015 (Unaudited)


	Shares		Value
COMMON STOCKS – 99.4%
Aerospace & Defense – 1.9%
The Boeing Co.		14,744	$	2,113,405
Exelis, Inc.		21,558		528,602
Lockheed Martin Corp.		28,203		5,262,680
Northrop Grumman Corp.		12,960		1,996,358
Raytheon Co.		24,990		2,598,960
				12,500,005
Air Freight & Logistics – 1.4%
United Parcel Service, Inc., Class B		91,749		9,223,527
Auto Components – 0.0%^†
Autoliv, Inc.		1,644		195,176
Banks – 7.1%
Bank of America Corp.		138,873		2,212,247
Bank of Hawaii Corp.		32,130		1,940,331
Citigroup, Inc.		28,560		1,522,819
Fifth Third Bancorp		13,566		271,320
JPMorgan Chase & Co.		272,034		17,208,871
Wells Fargo & Co.		431,613		23,781,876
				46,937,464
Beverages – 1.1%
The Coca-Cola Co.		47,481		1,925,829
Dr. Pepper Snapple Group, Inc.		49,980		3,727,508
PepsiCo, Inc.		14,637		1,392,272
				7,045,609
Biotechnology – 0.1%
Amgen, Inc.		714		112,748
Gilead Sciences, Inc.*		7,854		789,405
				902,153
Capital Markets – 0.7%
Ameriprise Financial, Inc.		7,824		980,191
Federated Investors, Inc., Class B		70,686		2,431,598
Invesco Ltd.		24,633		1,020,299
Waddell & Reed Financial, Inc., Class A		1,428		70,429
				4,502,517


	Shares		Value
Chemicals – 2.9%
The Dow Chemical Co.		52,122	$	2,658,222
E.I. du Pont de Nemours & Co.		58,191		4,259,581
LyondellBasell Industries N.V., Class A		62,475		6,467,412
Olin Corp.		119,595		3,531,640
The Scotts Miracle-Gro Co., Class A		29,631		1,911,496
				18,828,351
Commercial Services & Supplies – 1.6%
Deluxe Corp.		33,558		2,172,880
KAR Auction Services, Inc.		27,489		1,022,866
Pitney Bowes, Inc.		131,376		2,938,881
R.R. Donnelley & Sons Co.		172,788		3,217,312
Waste Management, Inc.		20,349		1,007,886
West Corp.		12,728		393,932
				10,753,757
Communications Equipment – 2.1%
Cisco Systems, Inc.		274,176		7,904,494
Harris Corp.		10,710		859,371
QUALCOMM, Inc.		78,183		5,316,444
				14,080,309
Consumer Finance – 0.5%
Navient Corp.		149,226		2,915,876
SLM Corp.*		15,010		152,952
				3,068,828
Containers & Packaging – 1.2%
Avery Dennison Corp.		52,836		2,937,153
Greif, Inc., Class A		8,211		334,681
MeadWestvaco Corp.		28,560		1,393,728
Packaging Corp. of America		13,938		964,370
Sonoco Products Co.		56,406		2,520,784
				8,150,716
Distributors – 0.2%
Genuine Parts Co.		12,138		1,090,599
Diversified Consumer Services – 0.2%
H&R Block, Inc.		36,057		1,090,364

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			151

FlexShares^® Quality Dividend Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Diversified Telecommunication Services – 2.0%
AT&T, Inc.		253,827	$	8,792,567
CenturyLink, Inc.		25,704		924,316
Frontier Communications Corp.		367,353		2,520,042
Windstream Holdings, Inc.		63,665		743,607
				12,980,532
Electric Utilities – 2.5%
American Electric Power Co., Inc.		60,333		3,431,138
Duke Energy Corp.		32,487		2,520,017
Entergy Corp.		46,053		3,554,370
Hawaiian Electric Industries, Inc.		27,132		849,232
Pepco Holdings, Inc.		21,777		565,766
Pinnacle West Capital Corp.		31,773		1,944,508
The Southern Co.		71,043		3,147,205
Westar Energy, Inc.		4,816		181,322
				16,193,558
Electrical Equipment – 0.9%
Emerson Electric Co.		103,530		6,090,670
Electronic Equipment, Instruments & Components – 0.1%
AVX Corp.		43,554		599,739
Energy Equipment & Services – 1.7%
Helmerich & Payne, Inc.		57,477		4,481,482
National Oilwell Varco, Inc.		69,615		3,787,752
Noble Corp. PLC		3,213		55,617
RPC, Inc.		50,694		806,541
Schlumberger Ltd.		20,349		1,925,219
				11,056,611
Food & Staples Retailing – 0.3%
Sysco Corp.		30,968		1,146,745
Wal-Mart Stores, Inc.		10,710		835,916
				1,982,661
Food Products – 1.4%
Archer-Daniels-Midland Co.		4,320		211,161
ConAgra Foods, Inc.		15,351		554,939
General Mills, Inc.		27,846		1,540,998
Kellogg Co.		57,120		3,617,409
Kraft Foods Group, Inc.		36,057		3,055,831
				8,980,338


	Shares		Value
Gas Utilities – 0.5%
AGL Resources, Inc.		61,404	$	3,086,779
Health Care Equipment & Supplies – 0.3%
Abbott Laboratories		47,124		2,187,496
Health Care Providers & Services – 1.7%
AmerisourceBergen Corp.		40,341		4,610,976
Anthem, Inc.		6,708		1,012,438
Cardinal Health, Inc.		43,911		3,703,454
Owens & Minor, Inc.		16,422		553,750
UnitedHealth Group, Inc.		10,710		1,193,094
				11,073,712
Hotels, Restaurants & Leisure – 2.2%
Brinker International, Inc.		13,104		725,568
Cracker Barrel Old Country Store, Inc.		17,136		2,270,177
Darden Restaurants, Inc.		41,769		2,663,609
Las Vegas Sands Corp.		53,193		2,812,846
McDonald’s Corp.		54,621		5,273,658
Six Flags Entertainment Corp.		9,282		436,440
Wynn Resorts Ltd.		1,078		119,733
				14,302,031
Household Durables – 0.7%
Garmin Ltd.		2,856		129,063
Leggett & Platt, Inc.		43,911		1,864,900
Tupperware Brands Corp.		38,199		2,553,985
				4,547,948
Household Products – 2.0%
The Clorox Co.		30,702		3,257,482
Kimberly-Clark Corp.		37,485		4,111,730
The Procter & Gamble Co.		68,187		5,421,548
				12,790,760
Industrial Conglomerates – 3.8%
3M Co.		77,826		12,171,208
General Electric Co.		474,096		12,838,520
				25,009,728
Insurance – 3.6%
Aflac, Inc.		19,278		1,215,285
AmTrust Financial Services, Inc.		56,049		3,333,234

See Accompanying Notes to the Financial Statements.


152		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Quality Dividend Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Insurance – (continued)
Cincinnati Financial Corp.		2,856	$	144,628
Erie Indemnity Co., Class A		29,988		2,481,507
First American Financial Corp.		15,708		546,481
FNF Group		10,080		362,779
Mercury General Corp.		14,280		784,543
MetLife, Inc.		36,771		1,885,985
Old Republic International Corp.		29,631		453,058
PartnerRe Ltd.		27,846		3,564,288
Principal Financial Group, Inc.		52,122		2,664,477
Prudential Financial, Inc.		29,274		2,388,758
Validus Holdings Ltd.		88,179		3,688,528
				23,513,551
Internet Software & Services – 0.1%
IAC/InterActiveCorp		12,138		847,475
IT Services – 5.3%
Accenture PLC, Class A		94,605		8,765,153
Automatic Data Processing, Inc.		15,351		1,297,774
Booz Allen Hamilton Holding Corp.		80,682		2,218,755
Broadridge Financial Solutions, Inc.		59,976		3,233,906
International Business Machines Corp.		51,051		8,744,526
Leidos Holdings, Inc.		52,836		2,200,091
Paychex, Inc.		60,690		2,936,789
Visa, Inc., Class A		10,353		683,816
The Western Union Co.		191,709		3,887,858
Xerox Corp.		79,968		919,632
				34,888,300
Leisure Products – 0.5%
Hasbro, Inc.		48,195		3,411,724
Machinery – 1.3%
Caterpillar, Inc.		99,246		8,622,493
Media – 0.7%
Cablevision Systems Corp., Class A		9,912		198,042
Comcast Corp., Class A		13,566		783,572
Gannett Co., Inc.		19,458		667,799
Omnicom Group, Inc.		12,495		946,621


	Shares		Value
Media – (continued)
Regal Entertainment Group, Class A		25,704	$	565,488
Time, Inc.		27,489		627,574
The Walt Disney Co.		9,639		1,047,952
				4,837,048
Metals & Mining – 0.6%
Nucor Corp.		80,325		3,924,680
Multiline Retail – 1.4%
Kohl’s Corp.		2,580		184,857
Macy’s, Inc.		40,341		2,607,239
Target Corp.		77,469		6,106,881
				8,898,977
Multi-Utilities – 2.8%
Ameren Corp.		26,775		1,096,169
CenterPoint Energy, Inc.		60,333		1,265,183
Consolidated Edison, Inc.		57,477		3,537,709
DTE Energy Co.		31,773		2,530,084
Integrys Energy Group, Inc.		44,982		3,288,184
Public Service Enterprise Group, Inc.		92,463		3,840,913
Vectren Corp.		71,400		3,082,338
				18,640,580
Oil, Gas & Consumable Fuels – 9.1%
Chevron Corp.		68,544		7,612,497
ConocoPhillips Co.		71,043		4,825,240
CVR Energy, Inc.		81,396		3,259,096
Exxon Mobil Corp.		198,135		17,311,055
HollyFrontier Corp.		82,467		3,198,070
Kinder Morgan, Inc.		44,268		1,901,311
Marathon Petroleum Corp.		9,288		915,518
Occidental Petroleum Corp.		37,485		3,002,548
ONEOK, Inc.		77,826		3,743,431
PBF Energy, Inc., Class A		17,493		496,451
Phillips 66		85,323		6,766,967
Spectra Energy Corp.		49,623		1,848,457
Targa Resources Corp.		14,280		1,498,972
Western Refining, Inc.		77,112		3,396,784
				59,776,397

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			153

FlexShares^® Quality Dividend Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Paper & Forest Products – 1.0%
Domtar Corp.		70,329	$	3,039,619
International Paper Co.		69,258		3,720,540
				6,760,159
Pharmaceuticals – 8.6%
Bristol-Myers Squibb Co.		39,878		2,541,425
Eli Lilly & Co.		24,336		1,749,028
Johnson & Johnson		89,964		8,924,429
Merck & Co., Inc.		341,292		20,327,351
Pfizer, Inc.		666,519		22,614,990
				56,157,223
Real Estate Investment Trusts (REITs) – 5.8%
Annaly Capital Management, Inc.		168,861		1,700,430
BioMed Realty Trust, Inc.		17,493		362,980
CBL & Associates Properties, Inc.		34,986		630,098
Chimera Investment Corp.		40,267		611,656
Columbia Property Trust, Inc.		105,672		2,771,777
Communications Sales & Leasing, Inc.*		76,398		2,298,052
Corrections Corp. of America		84,966		3,125,899
Digital Realty Trust, Inc.		40,698		2,580,660
EPR Properties		40,341		2,326,465
Gaming and Leisure Properties, Inc.		25,704		917,633
The GEO Group, Inc.		77,826		3,035,214
HCP, Inc.		83,181		3,351,362
Hospitality Properties Trust		61,761		1,857,771
Invesco Mortgage Capital, Inc.		62,475		962,115
Iron Mountain, Inc.		62,832		2,167,076
Lamar Advertising Co., Class A		32,130		1,862,255
Liberty Property Trust		17,493		609,456
MFA Financial, Inc.		106,386		826,619
National Health Investors, Inc.		11,067		738,390
Omega Healthcare Investors, Inc.		59,976		2,164,534
Outfront Media, Inc.		6,372		183,004
Realty Income Corp.		15,351		721,036
Retail Properties of America, Inc., Class A		11,052		166,996
Ryman Hospitality Properties, Inc.		31,076		1,791,221
Senior Housing Properties Trust		20,706		423,852
WP Carey, Inc.		3,424		217,355
				38,403,906


	Shares		Value
Road & Rail – 0.1%
Landstar System, Inc.		5,042	$	314,167
Semiconductors & Semiconductor Equipment – 2.1%
KLA-Tencor Corp.		3,927		230,907
Linear Technology Corp.		45,339		2,091,488
Maxim Integrated Products, Inc.		20,349		668,058
Texas Instruments, Inc.		142,086		7,702,482
Xilinx, Inc.		67,830		2,941,109
				13,634,044
Software – 1.3%
CA, Inc.		114,954		3,652,088
Microsoft Corp.		63,189		3,073,513
Oracle Corp.		38,556		1,681,813
Symantec Corp.		8,211		204,659
				8,612,073
Specialty Retail – 3.1%
Abercrombie & Fitch Co., Class A		126,378		2,840,977
Best Buy Co., Inc.		42,870		1,485,445
Foot Locker, Inc.		22,848		1,358,314
GameStop Corp., Class A		84,966		3,274,590
Guess?, Inc.		173,145		3,170,285
The Home Depot, Inc.		46,053		4,926,750
Staples, Inc.		201,348		3,285,999
				20,342,360
Technology Hardware, Storage & Peripherals – 4.9%
Apple, Inc.		176,358		22,071,204
Diebold, Inc.		13,566		471,690
Hewlett-Packard Co.		31,058		1,023,982
Lexmark International, Inc., Class A		69,615		3,090,210
Seagate Technology PLC		46,410		2,725,195
Western Digital Corp.		31,773		3,105,493
				32,487,774
Textiles, Apparel & Luxury Goods – 1.0%
Coach, Inc.		68,187		2,605,425
Hanesbrands, Inc.		116,148		3,609,880
				6,215,305
Thrifts & Mortgage Finance – 0.1%
New York Community Bancorp, Inc.		29,274		503,220

See Accompanying Notes to the Financial Statements.


154		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Quality Dividend Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Thrifts & Mortgage Finance – (continued)
People’s United Financial, Inc.		18,207	$	275,108
				778,328
Tobacco – 4.9%
Altria Group, Inc.		200,991		10,059,599
Lorillard, Inc.		12,152		848,939
Philip Morris International, Inc.		224,910		18,773,238
Reynolds American, Inc.		36,526		2,677,356
				32,359,132
Total Common Stocks (Cost $590,005,878)				652,677,634

Total Investment Securities (Cost $590,005,878) – 99.4%				652,677,634
Other assets less liabilities – 0.6%				4,248,527
NET ASSETS – 100.0%			$	656,926,161

*	Non-income producing security.

^†	Amount represents less than 0.05%.

Percentages shown are based on Net Assets.

Abbreviation:

REIT – Real Estate Investment Trust

As of April 30, 2015, 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	$	66,625,686
Aggregate gross unrealized depreciation		(5,246,545	)
Net unrealized appreciation	$	61,379,141
Federal income tax cost of investments	$	591,298,493

Futures Contracts

FlexShares^® Quality Dividend Index Fund had the following open long futures contracts as of April 30, 2015:


	Number of Contracts		Expiration Date		Notional Amount at Value		Unrealized Appreciation
E-mini S&P 500^® Index Futures Contracts		41		06/19/15	$	4,261,745	$	61,962

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			155

Schedule of Investments

FlexShares^® Quality Dividend Defensive Index Fund

April 30, 2015 (Unaudited)


	Shares		Value
COMMON STOCKS – 99.4%
Aerospace & Defense – 2.1%
Exelis, Inc.		15,550	$	381,286
L-3 Communications Holdings, Inc.		896		102,959
Lockheed Martin Corp.		10,000		1,866,000
Northrop Grumman Corp.		4,800		739,392
Raytheon Co.		7,500		780,000
Vectrus, Inc.*		798		20,397
				3,890,034
Air Freight & Logistics – 1.7%
C.H. Robinson Worldwide, Inc.		3,300		212,487
United Parcel Service, Inc., Class B		29,200		2,935,476
				3,147,963
Airlines – 0.1%
Delta Air Lines, Inc.		3,726		166,329
Auto Components – 0.1%
Delphi Automotive PLC		1,602		132,966
Remy International, Inc.		450		10,012
				142,978
Banks – 5.3%
Bank of America Corp.		13,100		208,683
Bank of Hawaii Corp.		18,700		1,129,293
BankUnited, Inc.		960		31,546
BOK Financial Corp.		4,000		260,760
Citigroup, Inc.		6,200		330,584
Cullen/Frost Bankers, Inc.		1,000		72,940
FNB Corp./Pennsylvania		234		3,105
JPMorgan Chase & Co.		15,000		948,900
U.S. Bancorp/Minnesotta		3,500		150,045
Wells Fargo & Co.		117,400		6,468,740
				9,604,596
Beverages – 2.3%
The Coca-Cola Co.		3,800		154,128
Dr. Pepper Snapple Group, Inc.		15,400		1,148,532
PepsiCo, Inc.		30,900		2,939,208
				4,241,868
Capital Markets – 0.6%
Federated Investors, Inc., Class B		29,400		1,011,360


	Shares		Value
Chemicals – 2.2%
The Dow Chemical Co.		2,144	$	109,344
E.I. du Pont de Nemours & Co.		4,900		358,680
LyondellBasell Industries N.V., Class A		17,700		1,832,304
Olin Corp.		35,400		1,045,362
The Scotts Miracle-Gro Co., Class A		11,700		754,767
				4,100,457
Commercial Services & Supplies – 1.4%
KAR Auction Services, Inc.		4,500		167,445
Pitney Bowes, Inc.		34,600		774,002
R.R. Donnelley & Sons Co.		54,800		1,020,376
Republic Services, Inc.		5,800		235,654
Waste Management, Inc.		5,700		282,321
West Corp.		3,700		114,515
				2,594,313
Communications Equipment – 1.3%
Cisco Systems, Inc.		66,700		1,922,961
Harris Corp.		5,900		473,416
				2,396,377
Consumer Finance – 0.9%
Navient Corp.		41,300		807,002
Santander Consumer USA Holdings, Inc.		34,400		849,336
SLM Corp.*		3,300		33,627
				1,689,965
Containers & Packaging – 1.2%
Bemis Co., Inc.		22,300		1,003,500
Greif, Inc., Class A		300		12,228
Packaging Corp. of America		2,214		153,187
Sonoco Products Co.		21,100		942,959
				2,111,874
Distributors – 0.2%
Genuine Parts Co.		4,100		368,385
Diversified Consumer Services – 0.1%
H&R Block, Inc.		4,200		127,008

See Accompanying Notes to the Financial Statements.


156		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Quality Dividend Defensive Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Diversified Financial Services – 0.0%^†
FNFV Group*		2,321	$	34,699
Diversified Telecommunication Services – 1.8%
AT&T, Inc.		69,400		2,404,016
CenturyLink, Inc.		2,400		86,304
Frontier Communications Corp.		88,500		607,110
Windstream Holdings, Inc.		17,766		207,507
				3,304,937
Electric Utilities – 2.6%
American Electric Power Co., Inc.		13,500		767,745
Duke Energy Corp.		15,500		1,202,335
Entergy Corp.		13,000		1,003,340
Hawaiian Electric Industries, Inc.		6,100		190,930
Pepco Holdings, Inc.		10,500		272,790
Pinnacle West Capital Corp.		5,800		354,960
The Southern Co.		19,800		877,140
				4,669,240
Electrical Equipment – 0.8%
Emerson Electric Co.		25,450		1,497,223
Energy Equipment & Services – 1.4%
Helmerich & Payne, Inc.		15,900		1,239,723
Noble Corp. PLC		5,600		96,936
RPC, Inc.		75,400		1,199,614
Schlumberger Ltd.		900		85,149
				2,621,422
Food & Staples Retailing – 0.9%
Safeway, Inc.^		16,900		8,988
Sysco Corp.		2,450		90,724
Wal-Mart Stores, Inc.		19,000		1,482,950
				1,582,662
Food Products – 1.3%
Archer-Daniels-Midland Co.		3,906		190,925
Campbell Soup Co.		15,900		710,889
General Mills, Inc.		5,600		309,904
Kellogg Co.		8,700		550,971
Kraft Foods Group, Inc.		7,000		593,250
				2,355,939
Gas Utilities – 0.5%
AGL Resources, Inc.		16,600		834,482


	Shares		Value
Health Care Equipment & Supplies – 0.2%
Abbott Laboratories		9,800	$	454,916
Health Care Providers & Services – 3.0%
Anthem, Inc.		7,700		1,162,161
Cardinal Health, Inc.		11,700		986,778
Owens & Minor, Inc.		3,300		111,276
UnitedHealth Group, Inc.		29,700		3,308,580
				5,568,795
Hotels, Restaurants & Leisure – 2.8%
Brinker International, Inc.		14,700		813,939
Cracker Barrel Old Country Store, Inc.		4,200		556,416
Darden Restaurants, Inc.		11,400		726,978
Domino’s Pizza, Inc.		3,500		377,475
Las Vegas Sands Corp.		18,500		978,280
McDonald’s Corp.		17,600		1,699,280
Six Flags Entertainment Corp.		900		42,318
				5,194,686
Household Durables – 0.7%
Garmin Ltd.		1,100		49,709
Leggett & Platt, Inc.		13,100		556,357
Tupperware Brands Corp.		10,900		728,774
				1,334,840
Household Products – 1.9%
The Clorox Co.		8,100		859,410
Kimberly-Clark Corp.		15,700		1,722,133
The Procter & Gamble Co.		10,200		811,002
				3,392,545
Industrial Conglomerates – 1.8%
3M Co.		3,800		594,282
General Electric Co.		101,400		2,745,912
				3,340,194
Insurance – 5.6%
Allied World Assurance Co. Holdings AG		18,000		740,520
American National Insurance Co.		250		25,015
AmTrust Financial Services, Inc.		17,600		1,046,672
Arthur J Gallagher & Co.		267		12,771
Cincinnati Financial Corp.		3,000		151,920

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			157

FlexShares^® Quality Dividend Defensive Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Insurance – (continued)
Erie Indemnity Co., Class A		8,400	$	695,100
Everest Re Group Ltd.		4,200		751,422
First American Financial Corp.		3,500		121,765
FNF Group		6,972		250,922
HCC Insurance Holdings, Inc.		21,700		1,236,032
Marsh & McLennan Cos., Inc.		7,800		438,048
Mercury General Corp.		2,800		153,832
Old Republic International Corp.		7,100		108,559
PartnerRe Ltd.		5,300		678,400
ProAssurance Corp.		14,600		656,270
The Progressive Corp.		15,100		402,566
The Travelers Cos., Inc.		12,400		1,253,764
Validus Holdings Ltd.		19,700		824,051
Willis Group Holdings PLC		13,500		656,505
				10,204,134
Internet Software & Services – 0.0%^†
IAC/InterActiveCorp		300		20,946
IT Services – 7.1%
Accenture PLC, Class A		25,900		2,399,635
Automatic Data Processing, Inc.		3,800		321,252
Booz Allen Hamilton Holding Corp.		17,750		488,125
Broadridge Financial Solutions, Inc.		21,600		1,164,672
Fidelity National Information Services, Inc.		3,177		198,531
International Business Machines Corp.		34,900		5,978,021
Leidos Holdings, Inc.		14,700		612,108
Paychex, Inc.		13,600		658,104
Visa, Inc., Class A		3,000		198,150
The Western Union Co.		41,900		849,732
				12,868,330
Leisure Products – 0.7%
Hasbro, Inc.		15,100		1,068,929
Mattel, Inc.		7,500		211,200
				1,280,129
Media – 0.9%
Cablevision Systems Corp., Class A		19,900		397,602


	Shares		Value
Media – (continued)
Comcast Corp., Class A		1,300	$	75,088
Gannett Co., Inc.		4,680		160,618
John Wiley & Sons, Inc., Class A		864		49,144
Meredith Corp.		2,520		131,141
Omnicom Group, Inc.		982		74,396
Regal Entertainment Group, Class A		7,100		156,200
Time Warner Cable, Inc.		1,323		205,753
The Walt Disney Co.		3,400		369,648
				1,619,590
Metals & Mining – 0.7%
Compass Minerals International, Inc.		2,800		247,324
Nucor Corp.		22,400		1,094,464
				1,341,788
Multiline Retail – 1.8%
Kohl’s Corp.		13,900		995,935
Macy’s, Inc.		9,300		601,059
Target Corp.		21,000		1,655,430
				3,252,424
Multi-Utilities – 2.8%
Ameren Corp.		3,500		143,290
CenterPoint Energy, Inc.		45,300		949,941
CMS Energy Corp.		9,950		337,603
Consolidated Edison, Inc.		17,400		1,070,970
Integrys Energy Group, Inc.		9,400		687,140
PG&E Corp.		552		29,212
Public Service Enterprise Group, Inc.		21,000		872,340
TECO Energy, Inc.		7,800		147,810
Vectren Corp.		13,800		595,746
Wisconsin Energy Corp.		5,800		284,896
				5,118,948
Oil, Gas & Consumable Fuels – 9.1%
Chevron Corp.		26,100		2,898,666
ConocoPhillips Co.		21,600		1,467,072
CVR Energy, Inc.		17,800		712,712
Exxon Mobil Corp.		92,400		8,072,988
HollyFrontier Corp.		10,000		387,800
Kinder Morgan, Inc.		9,500		408,025

See Accompanying Notes to the Financial Statements.


158		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Quality Dividend Defensive Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Oil, Gas & Consumable Fuels – (continued)
Occidental Petroleum Corp.		1,500	$	120,150
ONEOK, Inc.		20,500		986,050
PBF Energy, Inc., Class A		4,000		113,520
Spectra Energy Corp.		12,900		480,525
Targa Resources Corp.		8,600		902,742
Teekay Corp.		476		23,662
				16,573,912
Paper & Forest Products – 0.4%
Domtar Corp.		17,600		760,672
Pharmaceuticals – 8.9%
Bristol-Myers Squibb Co.		14,950		952,763
Eli Lilly & Co.		4,771		342,892
Johnson & Johnson		25,900		2,569,280
Merck & Co., Inc.		93,800		5,586,728
Pfizer, Inc.		202,000		6,853,860
				16,305,523
Real Estate Investment Trusts (REITs) – 5.7%
Annaly Capital Management, Inc.		31,600		318,212
BioMed Realty Trust, Inc.		66,000		1,369,500
Communications Sales & Leasing, Inc.*		21,107		634,892
Corrections Corp. of America		21,700		798,343
Digital Realty Trust, Inc.		7,400		469,234
EPR Properties		6,500		374,855
Gaming and Leisure Properties, Inc.		6,200		221,340
The GEO Group, Inc.		20,700		807,300
HCP, Inc.		22,100		890,409
Health Care REIT, Inc.		6,700		482,534
Highwoods Properties, Inc.		2,022		87,027
Home Properties, Inc.		5,600		411,936
Hospitality Properties Trust		17,500		526,400
Invesco Mortgage Capital, Inc.		21,300		328,020
Iron Mountain, Inc.		17,100		589,779
Medical Properties Trust, Inc.		1,950		27,261
MFA Financial, Inc.		10,300		80,031
National Health Investors, Inc.		12,300		820,656
National Retail Properties, Inc.		13,400		514,560
Omega Healthcare Investors, Inc.		12,600		454,734


	Shares		Value
Real Estate Investment Trusts (REITs) – (continued)
Realty Income Corp.		3,200	$	150,304
WP Carey, Inc.		300		19,044
				10,376,371
Road & Rail – 0.1%
Landstar System, Inc.		1,760		109,666
Semiconductors & Semiconductor Equipment – 1.4%
Linear Technology Corp.		5,300		244,489
Maxim Integrated Products, Inc.		5,700		187,131
Texas Instruments, Inc.		37,700		2,043,717
				2,475,337
Software – 2.9%
CA, Inc.		26,900		854,613
CDK Global, Inc.		908		43,511
Microsoft Corp.		74,900		3,643,136
Oracle Corp.		5,400		235,548
Symantec Corp.		18,300		456,128
				5,232,936
Specialty Retail – 2.5%
Best Buy Co., Inc.		8,894		308,177
Foot Locker, Inc.		3,096		184,057
GameStop Corp., Class A		19,600		755,384
Guess?, Inc.		54,200		992,402
The Home Depot, Inc.		11,200		1,198,176
L Brands, Inc.		1,142		102,049
Rent-A-Center, Inc.		3,066		90,754
Staples, Inc.		51,900		847,008
				4,478,007
Technology Hardware, Storage & Peripherals – 4.4%
Apple, Inc.		50,300		6,295,045
Diebold, Inc.		1,600		55,632
Hewlett-Packard Co.		8,511		280,608
Lexmark International, Inc., Class A		14,400		639,216
Seagate Technology PLC		5,900		346,448
Western Digital Corp.		3,550		346,977
				7,963,926
Textiles, Apparel & Luxury Goods – 0.5%
Coach, Inc.		26,300		1,004,923

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			159

FlexShares^® Quality Dividend Defensive Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Thrifts & Mortgage Finance – 0.2%
New York Community Bancorp, Inc.		7,200	$	123,768
People’s United Financial, Inc.		17,300		261,403
				385,171
Tobacco – 4.5%
Altria Group, Inc.		64,000		3,203,200
Lorillard, Inc.		13,150		918,659
Philip Morris International, Inc.		43,800		3,655,986
Reynolds American, Inc.		5,300		388,490
				8,166,335
Total Common Stocks (Cost $164,484,464)				181,319,155

Total Investment Securities (Cost $164,484,464) – 99.4%				181,319,155
Other assets less liabilities – 0.6%				1,104,014
NET ASSETS – 100.0%			$	182,423,169

*	Non-income producing security.

^	Security fair valued in accordance with procedures adopted by the Board of Trustees. At April 30, 2015, the value of these securities amounted to $8,988 or 0.00% of net assets.

^†	Amount represents less than 0.05%.

Percentages shown are based on Net Assets.

Abbreviation:

REIT – Real Estate Investment Trust

As of April 30, 2015, 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	$	17,928,898
Aggregate gross unrealized depreciation		(1,078,809	)
Net unrealized appreciation	$	16,850,089
Federal income tax cost of investments	$	164,469,066

Futures Contracts

FlexShares^® Quality Dividend Defensive Index Fund had the following open long futures contracts as of April 30, 2015:


	Number of Contracts		Expiration Date		Notional Amount at Value		Unrealized Appreciation
E-mini S&P 500^® Index Futures Contracts		10		06/19/15	$	1,039,450	$	19,390

See Accompanying Notes to the Financial Statements.


160		FLEXSHARES SEMIANNUAL REPORT

Schedule of Investments

FlexShares^® Quality Dividend Dynamic Index Fund

April 30, 2015 (Unaudited)


	Shares		Value
COMMON STOCKS – 99.0%
Aerospace & Defense – 1.6%
Exelis, Inc.		1,308	$	32,072
Lockheed Martin Corp.		5,814		1,084,893
Northrop Grumman Corp.		2,842		437,782
Raytheon Co.		606		63,024
Vectrus, Inc.*		72		1,840
				1,619,611
Air Freight & Logistics – 1.6%
United Parcel Service, Inc., Class B		16,872		1,696,142
Auto Components – 0.1%
Autoliv, Inc.		76		9,023
Cooper Tire & Rubber Co.		965		41,003
Dana Holding Corp.		841		18,140
Johnson Controls, Inc.		396		19,950
				88,116
Banks – 8.3%
Bank of America Corp.		14,592		232,450
Citigroup, Inc.		5,643		300,885
Fifth Third Bancorp		4,959		99,180
JPMorgan Chase & Co.		59,451		3,760,870
Regions Financial Corp.		42,009		412,948
Webster Financial Corp.		796		28,521
Wells Fargo & Co.		69,426		3,825,373
				8,660,227
Beverages – 0.6%
The Coca-Cola Co.		5,643		228,880
Dr. Pepper Snapple Group, Inc.		4,011		299,140
PepsiCo, Inc.		855		81,328
				609,348
Biotechnology – 0.5%
Gilead Sciences, Inc.*		4,902		492,700
Capital Markets – 2.1%
Ameriprise Financial, Inc.		5,073		635,546
BlackRock, Inc.		627		228,190
Federated Investors, Inc., Class B		14,535		500,004
Invesco Ltd.		11,343		469,827


	Shares		Value
Capital Markets – (continued)
Janus Capital Group, Inc.		9,006	$	161,207
Waddell & Reed Financial, Inc., Class A		3,306		163,052
				2,157,826
Chemicals – 2.9%
The Dow Chemical Co.		10,203		520,353
E.I. du Pont de Nemours & Co.		12,939		947,135
Huntsman Corp.		3,819		88,028
LyondellBasell Industries N.V., Class A		7,923		820,189
Olin Corp.		21,090		622,787
				2,998,492
Commercial Services & Supplies – 1.8%
Deluxe Corp.		8,322		538,850
KAR Auction Services, Inc.		2,907		108,169
Pitney Bowes, Inc.		25,707		575,066
R.R. Donnelley & Sons Co.		31,008		577,369
Waste Management, Inc.		174		8,618
West Corp.		2,755		85,267
				1,893,339
Communications Equipment – 1.8%
Cisco Systems, Inc.		56,601		1,631,807
Harris Corp.		2,451		196,668
QUALCOMM, Inc.		171		11,628
				1,840,103
Consumer Finance – 0.5%
Navient Corp.		26,106		510,111
Containers & Packaging – 0.8%
Avery Dennison Corp.		11,058		614,714
MeadWestvaco Corp.		3,477		169,678
Packaging Corp. of America		1,422		98,388
				882,780
Diversified Telecommunication Services – 1.6%
AT&T, Inc.		30,780		1,066,219
CenturyLink, Inc.		4,218		151,679
Frontier Communications Corp.		53,523		367,168

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			161

FlexShares^® Quality Dividend Dynamic Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Diversified Telecommunication Services – (continued)
Windstream Holdings, Inc.		9,025	$	105,412
				1,690,478
Electric Utilities – 2.3%
American Electric Power Co., Inc.		12,426		706,667
Duke Energy Corp.		2,508		194,546
Entergy Corp.		5,928		457,523
Hawaiian Electric Industries, Inc.		3,762		117,751
Pinnacle West Capital Corp.		6,327		387,212
The Southern Co.		6,840		303,012
Westar Energy, Inc.		5,985		225,335
				2,392,046
Electrical Equipment – 1.4%
Eaton Corp. PLC		5,358		368,255
Emerson Electric Co.		18,297		1,076,413
Rockwell Automation, Inc.		350		41,510
				1,486,178
Electronic Equipment, Instruments & Components – 0.8%
AVX Corp.		8,379		115,379
Corning, Inc.		11,628		243,374
TE Connectivity Ltd.		464		30,879
Vishay Intertechnology, Inc.		35,568		451,002
				840,634
Energy Equipment & Services – 1.8%
Helmerich & Payne, Inc.		9,519		742,197
National Oilwell Varco, Inc.		14,649		797,052
Noble Corp. PLC		8,778		151,947
Schlumberger Ltd.		1,767		167,176
				1,858,372
Food & Staples Retailing – 0.1%
Wal-Mart Stores, Inc.		1,425		111,221
Food Products – 0.4%
Kraft Foods Group, Inc.		4,332		367,137
Gas Utilities – 0.6%
AGL Resources, Inc.		12,882		647,578


	Shares		Value
Health Care Equipment & Supplies – 0.8%
Hill-Rom Holdings, Inc.		7,068	$	352,976
Medtronic PLC		6,897		513,482
				866,458
Health Care Providers & Services – 1.3%
Anthem, Inc.		6,384		963,537
Cardinal Health, Inc.		2,451		206,718
HealthSouth Corp.		2,451		110,834
Owens & Minor, Inc.		1,425		48,051
				1,329,140
Hotels, Restaurants & Leisure – 1.9%
Cracker Barrel Old Country Store, Inc.		2,964		392,671
Darden Restaurants, Inc.		7,752		494,345
Las Vegas Sands Corp.		9,063		479,252
Royal Caribbean Cruises Ltd.		2,565		174,574
Six Flags Entertainment Corp.		1,710		80,404
Starwood Hotels & Resorts Worldwide, Inc.		1,539		132,277
Wyndham Worldwide Corp.		2,508		214,183
				1,967,706
Household Durables – 1.1%
Garmin Ltd.		969		43,789
Leggett & Platt, Inc.		9,519		404,272
Newell Rubbermaid, Inc.		2,320		88,462
Tupperware Brands Corp.		6,840		457,322
Whirlpool Corp.		667		117,125
				1,110,970
Household Products – 0.2%
The Procter & Gamble Co.		3,021		240,200
Industrial Conglomerates – 3.1%
3M Co.		10,716		1,675,875
General Electric Co.		58,482		1,583,693
				3,259,568
Insurance – 2.8%
Aflac, Inc.		10,716		675,537
Assured Guaranty Ltd.		21,603		561,462
Cincinnati Financial Corp.		1,083		54,843
Erie Indemnity Co., Class A		516		42,699

See Accompanying Notes to the Financial Statements.


162		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Quality Dividend Dynamic Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Insurance – (continued)
Lincoln National Corp.		10,830	$	611,787
Mercury General Corp.		912		50,105
MetLife, Inc.		6,669		342,053
Old Republic International Corp.		5,073		77,566
Principal Financial Group, Inc.		7,695		393,369
Prudential Financial, Inc.		1,197		97,675
				2,907,096
Internet & Catalog Retail – 0.4%
HSN, Inc.		5,871		366,468
Internet Software & Services – 0.1%
IAC/InterActiveCorp		1,425		99,494
IT Services – 3.8%
Accenture PLC, Class A		14,364		1,330,825
Broadridge Financial Solutions, Inc.		13,167		709,965
International Business Machines Corp.		1,539		263,615
Leidos Holdings, Inc.		290		12,076
Paychex, Inc.		9,804		474,415
Visa, Inc., Class A		1,824		120,475
The Western Union Co.		28,272		573,356
Xerox Corp.		45,030		517,845
				4,002,572
Leisure Products – 0.7%
Brunswick Corp.		3,249		162,580
Hasbro, Inc.		8,436		597,184
				759,764
Machinery – 1.8%
Caterpillar, Inc.		9,576		831,963
Cummins, Inc.		513		70,928
The Manitowoc Co., Inc.		4,332		85,470
Terex Corp.		14,592		400,696
The Timken Co.		8,835		347,127
Trinity Industries, Inc.		5,244		142,060
				1,878,244
Media – 1.2%
Cablevision Systems Corp., Class A		7,296		145,774


	Shares		Value
Media – (continued)
Comcast Corp., Class A		2,337	$	134,985
Gannett Co., Inc.		1,440		49,421
The Interpublic Group of Cos., Inc.		5,757		119,976
Meredith Corp.		184		9,575
Omnicom Group, Inc.		6,669		505,244
Regal Entertainment Group, Class A		3,876		85,272
The Walt Disney Co.		1,368		148,729
				1,198,976
Metals & Mining – 1.3%
Nucor Corp.		14,649		715,750
Steel Dynamics, Inc.		11,742		259,850
U.S. Silica Holdings, Inc.		9,291		347,019
				1,322,619
Multiline Retail – 0.1%
Macy’s, Inc.		1,510		97,591
Multi-Utilities – 2.6%
CenterPoint Energy, Inc.		4,332		90,842
Consolidated Edison, Inc.		7,296		449,069
DTE Energy Co.		5,643		449,352
Integrys Energy Group, Inc.		6,726		491,671
Public Service Enterprise Group, Inc.		14,535		603,784
Vectren Corp.		14,079		607,790
				2,692,508
Oil, Gas & Consumable Fuels – 8.9%
Chevron Corp.		17,841		1,981,421
ConocoPhillips Co.		15,789		1,072,389
CVR Energy, Inc.		14,364		575,135
Exxon Mobil Corp.		9,633		841,635
Kinder Morgan, Inc.		6,441		276,641
Marathon Petroleum Corp.		7,011		691,074
Occidental Petroleum Corp.		4,047		324,165
ONEOK, Inc.		14,877		715,584
PBF Energy, Inc., Class A		4,161		118,089
Phillips 66		7,467		592,208
Spectra Energy Corp.		3,591		133,765
Teekay Corp.		75		3,728
Tesoro Corp.		6,897		591,969
Valero Energy Corp.		13,509		768,662

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			163

FlexShares^® Quality Dividend Dynamic Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Oil, Gas & Consumable Fuels – (continued)
Western Refining, Inc.		13,338	$	587,539
				9,274,004
Paper & Forest Products – 1.0%
Domtar Corp.		12,255		529,661
International Paper Co.		10,374		557,291
				1,086,952
Pharmaceuticals – 8.7%
Bristol-Myers Squibb Co.		7,859		500,854
Eli Lilly & Co.		1,549		111,327
Johnson & Johnson		15,675		1,554,960
Merck & Co., Inc.		50,331		2,997,714
Pfizer, Inc.		113,772		3,860,284
				9,025,139
Real Estate Investment Trusts (REITs) – 5.6%
Annaly Capital Management, Inc.		21,546		216,968
CBL & Associates Properties, Inc.		6,384		114,976
Chimera Investment Corp.		136		2,066
Columbia Property Trust, Inc.		12,198		319,954
Communications Sales & Leasing, Inc.*		10,830		325,766
Corrections Corp. of America		11,856		436,182
Digital Realty Trust, Inc.		5,301		336,136
EPR Properties		5,301		305,709
Gaming and Leisure Properties, Inc.		3,591		128,199
The GEO Group, Inc.		13,623		531,297
HCP, Inc.		14,820		597,098
Hospitality Properties Trust		11,799		354,914
Host Hotels & Resorts, Inc.		20,349		409,829
Iron Mountain, Inc.		4,731		163,172
Lamar Advertising Co., Class A		3,648		211,438
LaSalle Hotel Properties		8,208		301,151
Liberty Property Trust		2,451		85,393
The Macerich Co.		1,290		105,470
MFA Financial, Inc.		2,337		18,158
Omega Healthcare Investors, Inc.		8,151		294,170
Ryman Hospitality Properties, Inc.		7,866		453,396
Senior Housing Properties Trust		4,161		85,176
				5,796,618


	Shares		Value
Semiconductors & Semiconductor Equipment – 2.1%
KLA-Tencor Corp.		1,254	$	73,735
Linear Technology Corp.		7,980		368,118
Maxim Integrated Products, Inc.		4,104		134,734
Texas Instruments, Inc.		24,966		1,353,407
Xilinx, Inc.		6,783		294,111
				2,224,105
Software – 2.1%
CA, Inc.		17,271		548,700
Microsoft Corp.		25,479		1,239,298
Oracle Corp.		8,493		370,465
				2,158,463
Specialty Retail – 4.1%
Abercrombie & Fitch Co., Class A		21,090		474,103
Best Buy Co., Inc.		13,680		474,012
GameStop Corp., Class A		14,478		557,982
Guess?, Inc.		31,179		570,888
The Home Depot, Inc.		14,535		1,554,954
Staples, Inc.		42,408		692,099
				4,324,038
Technology Hardware, Storage & Peripherals – 5.9%
Apple, Inc.		28,386		3,552,508
Diebold, Inc.		2,850		99,094
Hewlett-Packard Co.		31,464		1,037,368
Lexmark International, Inc., Class A		8,664		384,595
Seagate Technology PLC		7,923		465,239
Western Digital Corp.		6,327		618,401
				6,157,205
Textiles, Apparel & Luxury Goods – 0.7%
Coach, Inc.		11,799		450,840
Hanesbrands, Inc.		10,356		321,864
				772,704
Thrifts & Mortgage Finance – 0.3%
New York Community Bancorp, Inc.		9,690		166,571
People’s United Financial, Inc.		1,254		18,948
Radian Group, Inc.		8,721		155,757
				341,276

See Accompanying Notes to the Financial Statements.


164		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Quality Dividend Dynamic Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Tobacco – 4.8%
Altria Group, Inc.		32,091	$	1,606,155
Lorillard, Inc.		2,755		192,464
Philip Morris International, Inc.		36,195		3,021,197
Reynolds American, Inc.		3,074		225,324
				5,045,140
Total Common Stocks (Cost $93,476,566)				103,147,457

Total Investment Securities (Cost $93,476,566) – 99.0%				103,147,457
Other assets less liabilities – 1.0%				1,027,518
NET ASSETS – 100.0%			$	104,174,975

*	Non-income producing security.

Percentages shown are based on Net Assets.

Abbreviation:

REIT – Real Estate Investment Trust

As of April 30, 2015, 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	$	10,994,186
Aggregate gross unrealized depreciation		(1,389,092	)
Net unrealized appreciation	$	9,605,094
Federal income tax cost of investments	$	93,542,363

Futures Contracts

FlexShares^® Quality Dividend Dynamic Index Fund had the following open long futures contracts as of April 30, 2015:


	Number of Contracts		Expiration Date		Notional Amount at Value		Unrealized Appreciation
E-mini S&P 500^® Index Futures Contracts		9		06/19/15	$	935,505	$	16,799

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			165

Schedule of Investments

FlexShares^® International Quality Dividend Index Fund

April 30, 2015 (Unaudited)


	Shares		Value
COMMON STOCKS – 98.9%
Air Freight & Logistics – 1.6%
bpost S.A.		104,533	$	2,995,714
Deutsche Post AG (Registered)		57,200		1,894,341
Toll Holdings Ltd.		166,309		1,177,962
				6,068,017
Auto Components – 0.8%
Bridgestone Corp.		43,200		1,812,544
Valeo S.A.		8,580		1,377,732
				3,190,276
Automobiles – 2.3%
Daihatsu Motor Co., Ltd.		143,000		2,074,438
Fuji Heavy Industries Ltd.		57,200		1,923,635
Tofas Turk Otomobil Fabrikasi A/S		417,345		2,558,533
Toyota Motor Corp.		28,600		1,997,483
				8,554,089
Banks – 12.9%
Aozora Bank Ltd.		858,000		3,212,033
Australia & New Zealand Banking Group Ltd.		131,131		3,515,571
Banco Santander S.A.* ^		575		4,353
Banco Santander S.A.		26,485		200,503
Bank Handlowy w Warszawie S.A.		14,872		469,759
Bank of China Ltd., Class H		3,575,000		2,458,313
Canadian Imperial Bank of Commerce		42,902		3,431,452
China CITIC Bank Corp. Ltd., Class H		1,573,000		1,430,710
China Construction Bank Corp., Class H		7,293,000		7,103,739
Commonwealth Bank of Australia		159,016		11,146,419
Hang Seng Bank Ltd.		14,300		279,132
HSBC Holdings PLC		177,440		1,767,245
Royal Bank of Canada		34,892		2,307,697
Skandinaviska Enskilda Banken AB, Class A		241,241		3,056,554
Skandinaviska Enskilda Banken AB, Class C		177,178		2,181,214


	Shares		Value
Banks – (continued)
Swedbank AB, Class A		52,624	$	1,225,111
Westpac Banking Corp.		172,458		4,959,517
				48,749,322
Capital Markets – 3.3%
Banca Generali SpA		96,525		3,240,506
CI Financial Corp.		108,108		3,164,920
Coronation Fund Managers Ltd.		188,331		1,433,415
Daiwa Securities Group, Inc.		322,000		2,690,733
IGM Financial, Inc.		24,882		937,351
Macquarie Group Ltd.		14,729		905,816
				12,372,741
Chemicals – 2.6%
Akzo Nobel N.V.		2,972		227,857
BASF SE		42,115		4,222,737
EMS-Chemie Holding AG (Registered)		123		51,726
Kuraray Co., Ltd.		14,300		194,299
Methanex Corp.		17,732		1,062,969
PTT Global Chemical PCL (NVDR)		228,800		445,940
Shin-Etsu Chemical Co., Ltd.		14,300		878,888
Synthos S.A.*		2,242,526		2,932,787
				10,017,203
Commercial Services & Supplies – 0.7%
Dai Nippon Printing Co., Ltd.		9,000		93,445
Edenred		97,240		2,604,743
				2,698,188
Communications Equipment – 0.5%
Nokia Oyj		150,364		1,018,524
Telefonaktiebolaget LM Ericsson, Class A		90,570		950,674
				1,969,198
Construction & Engineering – 1.7%
ACS Actividades de Construccion y Servicios S.A.		43,724		1,544,565
CIMIC Group Ltd.		167,739		2,790,294
HOCHTIEF AG		6,292		488,036
Vinci S.A.		25,883		1,589,955
				6,412,850

See Accompanying Notes to the Financial Statements.


166		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® International Quality Dividend Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Construction Materials – 0.2%
Taiwan Cement Corp.		439,000	$	624,972
Diversified Financial Services – 1.5%
Eurazeo S.A.		3,361		240,696
Investor AB, Class A		64,924		2,589,854
Investor AB, Class B		66,566		2,711,952
				5,542,502
Diversified Telecommunication Services – 2.0%
Bezeq The Israeli Telecommunication Corp. Ltd.		1,649,219		3,125,312
Maroc Telecom		14,802		196,540
O2 Czech Republic A/S		95,709		784,732
Telefonica S.A.		232,997		3,561,197
				7,667,781
Electric Utilities – 2.9%
Cia Energetica de Minas Gerais		672,100		3,280,887
Cia Energetica de Minas Gerais (Preference)		480,700		2,332,134
EDP – Energias de Portugal S.A.		712,426		2,851,560
Fortum Oyj		128,557		2,549,765
Red Electrica Corp. S.A.		500		42,026
				11,056,372
Electrical Equipment – 1.4%
Mitsubishi Electric Corp.		144,000		1,881,975
Vestas Wind Systems A/S		72,501		3,299,558
				5,181,533
Electronic Equipment, Instruments & Components – 1.7%
Delta Electronics Thailand PCL (NVDR)		165,900		420,223
Hoya Corp.		71,500		2,772,888
Omron Corp.		71,500		3,298,070
				6,491,181
Energy Equipment & Services – 1.2%
Amec Forster Wheeler PLC		198,198		2,796,052
Ensco PLC, Class A		21,691		591,730
TGS Nopec Geophysical Co. ASA		48,334		1,227,673
				4,615,455


	Shares		Value
Food & Staples Retailing – 1.3%
Koninklijke Ahold N.V.		131,274	$	2,544,814
Lawson, Inc.		31,400		2,261,787
				4,806,601
Food Products – 3.0%
Nestle S.A. (Registered)		47,619		3,705,225
Tate & Lyle PLC		321,035		2,942,836
Unilever N.V. (CVA)		109,681		4,801,207
				11,449,268
Gas Utilities – 1.1%
Empresa de Energia de Bogota S.A. ESP		1,289,717		921,745
Enagas S.A.		95,095		2,931,963
Gas Natural SDG S.A.		11,726		288,479
				4,142,187
Health Care Equipment & Supplies – 0.1%
Coloplast A/S, Class B		2,641		215,721
Hotels, Restaurants & Leisure – 1.6%
OPAP S.A.		56,485		503,190
Sands China Ltd.		572,000		2,343,007
SJM Holdings Ltd.		1,859,936		2,368,367
Wynn Macau Ltd.		400,400		815,145
				6,029,709
Household Durables – 0.3%
Panasonic Corp.		72,000		1,037,252
Household Products – 0.0%^†
Svenska Cellulosa AB S.C.A., Class A		143		3,625
Independent Power and Renewable Electricity Producers – 1.4%
AES Tiete S.A.		614,900		2,929,902
AES Tiete S.A. (Preference)		443,300		2,526,132
				5,456,034
Industrial Conglomerates – 0.1%
Siemens AG (Registered)		2,550		278,625
Insurance – 6.5%
Admiral Group PLC		79,508		1,903,625
Allianz SE (Registered)		23,881		4,083,554

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			167

FlexShares^® International Quality Dividend Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Insurance – (continued)
Amlin PLC		199,056	$	1,403,466
The Dai-ichi Life Insurance Co., Ltd.		69,100		1,139,830
Gjensidige Forsikring ASA		112,684		1,960,437
Great-West Lifeco, Inc.		15,301		467,525
Insurance Australia Group Ltd.		342,628		1,570,140
Legal & General Group PLC		340,483		1,360,417
Mapfre S.A.		101,029		376,077
Mediolanum SpA		157,532		1,328,332
Muenchener Rueckversicherungs-Gesellschaft AG (Registered)		16,005		3,136,727
Power Financial Corp.		35,607		1,097,092
Swiss Re AG*		5,577		494,662
Zurich Insurance Group AG*		14,014		4,331,790
				24,653,674
Internet Software & Services – 0.1%
Kakaku.com, Inc.		14,300		222,142
Yahoo Japan Corp.		28,600		117,344
				339,486
Leisure Products – 0.4%
Bandai Namco Holdings, Inc.		71,500		1,470,987
Machinery – 3.0%
Atlas Copco AB, Class B		8,965		249,507
FANUC Corp.		6,900		1,529,393
Hino Motors Ltd.		200,200		2,626,506
IMI PLC		23,166		445,716
Kawasaki Heavy Industries Ltd.		150,000		774,630
Komatsu Ltd.		42,900		867,894
Metso Oyj		75,665		2,156,119
Minebea Co., Ltd.		15,000		231,762
Turk Traktor ve Ziraat Makineleri A/S		83,941		2,507,107
				11,388,634
Media – 2.6%
BEC World PCL (NVDR)		143,000		174,602
Lagardere S.C.A.		102,657		3,295,675
ProSiebenSat.1 Media AG (Registered)		64,064		3,294,302
Sky PLC		4,790		79,278


	Shares		Value
Media – (continued)
UBM PLC		347,347	$	3,013,219
				9,857,076
Metals & Mining – 3.2%
Antofagasta PLC		20,878		250,738
Eregli Demir ve Celik Fabrikalari TAS		1,459,386		2,454,904
Fortescue Metals Group Ltd.		1,399,112		2,394,703
Kobe Steel Ltd.		143,000		260,500
Kumba Iron Ore Ltd.		137,852		1,846,612
MMC Norilsk Nickel OJSC (ADR)		163,290		3,064,132
Rio Tinto PLC		45,116		2,000,229
				12,271,818
Oil, Gas & Consumable Fuels – 7.5%
Baytex Energy Corp.		23,993		466,885
BP PLC		150,350		1,086,168
Canadian Oil Sands Ltd.		195,723		2,118,414
Cenovus Energy, Inc.		34,892		654,774
Crescent Point Energy Corp.		28,886		751,453
Ecopetrol S.A.*		1,391,676		1,194,696
Eni SpA		238,147		4,584,579
Gazprom OAO (ADR)		50,623		299,891
Indo Tambangraya Megah Tbk PT		1,287,000		1,251,009
Neste Oil Oyj		17,160		466,487
Royal Dutch Shell PLC, Class A		26,455		837,284
Royal Dutch Shell PLC, Class B		178,178		5,735,056
Showa Shell Sekiyu KK		286,096		2,768,439
Surgutneftegas OAO (Preference) (ADR)		408,516		3,063,870
TOTAL S.A.		6,578		357,382
Vermilion Energy, Inc.		59,917		2,873,048
				28,509,435
Paper & Forest Products – 0.0%^†
Mondi PLC		8,171		166,126
Personal Products – 0.2%
Kao Corp.		14,300		686,978
Pharmaceuticals – 6.4%
Bayer AG (Registered)*		2,586		376,417
GlaxoSmithKline PLC		472,686		11,001,331

See Accompanying Notes to the Financial Statements.


168		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® International Quality Dividend Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Pharmaceuticals – (continued)
Novartis AG (Registered)		25,311	$	2,611,066
Novo Nordisk A/S, Class B		4,410		250,761
Orion Oyj, Class A		82,657		2,670,272
Orion Oyj, Class B		87,158		2,856,698
Roche Holding AG		13,728		3,947,404
Sanofi S.A.		4,308		440,253
				24,154,202
Real Estate Investment Trusts (REITs) – 2.1%
Gecina S.A.		5,148		705,499
Hui Xian Real Estate Investment Trust		5,148,000		2,871,619
Japan Retail Fund Investment Corp.		143		304,713
Unibail-Rodamco SE		11,440		3,159,906
Westfield Corp.		141,713		1,056,285
				8,098,022
Real Estate Management & Development – 4.6%
Daito Trust Construction Co., Ltd.		28,700		3,351,571
Evergrande Real Estate Group Ltd.		6,864,000		6,508,763
KWG Property Holding Ltd.		4,220,544		4,285,259
Ruentex Development Co., Ltd.		1,861,000		3,311,712
				17,457,305
Semiconductors & Semiconductor Equipment – 0.9%
Radiant Opto-Electronics Corp.		847,800		2,795,918
Taiwan Semiconductor Manufacturing Co., Ltd.		143,000		686,378
				3,482,296
Software – 0.8%
COLOPL, Inc.		4,500		92,956
GungHo Online Entertainment, Inc.		286,000		1,175,833
Oracle Corp.		1,200		54,851
The Sage Group PLC		234,377		1,750,469
				3,074,109
Specialty Retail – 0.6%
Hennes & Mauritz AB, Class B		27,885		1,109,676
Sanrio Co., Ltd.		14,300		384,775
Truworths International Ltd.		8,866		64,307


	Shares		Value
Specialty Retail – (continued)
USS Co., Ltd.		42,900	$	758,556
				2,317,314
Technology Hardware, Storage & Peripherals – 1.4%
Asustek Computer, Inc.		162,000		1,721,772
Inventec Corp.		3,003,000		2,127,771
Samsung Electronics Co., Ltd.		805		1,058,815
Seiko Epson Corp.		14,300		251,060
				5,159,418
Textiles, Apparel & Luxury Goods – 1.2%
HUGO BOSS AG		5,434		671,015
Li & Fung Ltd.		858,000		875,584
Ruentex Industries Ltd.		1,287,000		3,164,341
				4,710,940
Tobacco – 4.0%
British American Tobacco Malaysia Bhd		48,800		917,766
British American Tobacco PLC		178,249		9,840,725
Imperial Tobacco Group PLC		57,057		2,798,820
Japan Tobacco, Inc.		42,900		1,509,584
				15,066,895
Transportation Infrastructure – 1.9%
EcoRodovias Infraestrutura e Logistica S.A.		743,600		2,199,274
Hopewell Highway Infrastructure Ltd.		643,500		320,457
Hutchison Port Holdings Trust, Class U		1,515,800		1,023,165
Jiangsu Expressway Co., Ltd., Class H		2,002,000		2,758,476
SIA Engineering Co., Ltd.		243,100		769,007
				7,070,379
Water Utilities – 0.1%
United Utilities Group PLC		16,230		242,182
Wireless Telecommunication Services – 5.2%
Advanced Info Service PCL (NVDR)		42,900		312,331
Intouch Holdings PCL (NVDR)		1,188,240		2,775,504
MegaFon OAO (Registered) (GDR)		9,581		162,877

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			169

FlexShares^® International Quality Dividend Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Wireless Telecommunication Services – (continued)
Mobile TeleSystems OJSC (ADR)		342,961	$	4,142,969
StarHub Ltd.		271,700		867,684
Tele2 AB, Class B		235,387		3,140,241
Vodacom Group Ltd.		237,523		2,945,956
Vodafone Group PLC		1,469,468		5,206,291
				19,553,853
Total Common Stocks (Cost $368,296,521)				374,361,831

Total Investment Securities (Cost $368,296,521) – 98.9%				374,361,831
Other assets less liabilities – 1.1%				4,239,210
NET ASSETS – 100.0%			$	378,601,041

*	Non-income producing security.

^	Security fair valued in accordance with procedures adopted by the Board of Trustees. At April 30, 2015, the value of these securities amounted to $4,353 or 0.00% of net assets.

^†	Amount represents less than 0.05%.

Percentages shown are based on Net Assets.

Abbreviations:

ADR – American Depositary Receipt

CVA – Dutch Certificate

EUR – Euro

GBP – British Pound

GDR – Global Depositary Receipt

INR – Indian Rupee

JPY – Japanese Yen

NVDR – Non-Voting Depositary Receipt

REIT – Real Estate Investment Trust

USD – US Dollar

As of April 30, 2015, 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	$	23,832,561
Aggregate gross unrealized depreciation		(18,308,288	)
Net unrealized appreciation	$	5,524,273
Federal income tax cost of investments	$	368,837,558

Futures Contracts

FlexShares^® International Quality Dividend Index Fund had the following open long futures contracts as of April 30, 2015:


	Number of Contracts		Expiration Date		Notional Amount at Value		Unrealized Appreciation (Depreciation)
E-mini MSCI EAFE Index Futures Contracts		13		06/19/15	$	1,231,230	$	53,886
MSCI Emerging Markets Mini Index Futures Contracts		19		06/19/15		986,765		98,817
SGX S&P CNX Nifty Index Futures Contracts		123		05/28/15		2,031,099		(20,885	)
							$	131,818

Forward Foreign Currency Contracts

FlexShares^® International Quality Dividend Index Fund had the following outstanding contracts as of April 30, 2015:


Contracts to Receive		Counterparty	In Exchange For			Receipt Date		Unrealized Appreciation (Depreciation)
EUR	73,000	Morgan Stanley		USD	77,330		06/17/15	$	4,517
GBP	36,000	Morgan Stanley		USD	53,272		06/17/15		2,034
INR	236,212,901	Citibank N.A.		USD	3,693,753		06/17/15		(10,580	)
JPY	5,127,000	Morgan Stanley		USD	42,322		06/17/15		542
								$	(3,487	)

See Accompanying Notes to the Financial Statements.


170		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, 2015:


Australia	7.8	%
Belgium	0.8
Brazil	3.5
Canada	5.1
China	7.3
Colombia	0.6
Czech Republic	0.2
Denmark	1.0
Finland	3.1
France	3.6
Germany	4.9
Greece	0.1
Hong Kong	1.8
Indonesia	0.3
Israel	0.8
Italy	2.4
Japan	12.3
Malaysia	0.2
Morocco	0.1
Netherlands	2.0
Norway	0.8
Poland	0.9
Portugal	0.8
Russia	2.8
Singapore	0.7
South Africa	1.7
South Korea	0.3
Spain	2.4
Sweden	4.6
Switzerland	4.0
Taiwan	3.8
Thailand	1.1
Turkey	2.0
United Kingdom	15.1
Other¹	1.1
	100.0	%

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

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			171

Schedule of Investments

FlexShares^® International Quality Dividend Defensive Index Fund

April 30, 2015 (Unaudited)


	Shares		Value
COMMON STOCKS – 98.3%
Air Freight & Logistics – 1.2%
bpost S.A.		27,522	$	788,727
Deutsche Post AG (Registered)		12,920		427,883
				1,216,610
Auto Components – 0.1%
Nokian Renkaat Oyj		4,305		140,426
Automobiles – 1.5%
Daihatsu Motor Co., Ltd.		25,100		364,115
Fuji Heavy Industries Ltd.		28,300		951,729
Toyota Motor Corp.		4,100		286,352
				1,602,196
Banks – 13.8%
Aozora Bank Ltd.		244,000		913,445
Australia & New Zealand Banking Group Ltd.		30,265		811,393
Banco de Credito e Inversiones		2,446		121,944
Banco Santander S.A.* ^		2,226		16,852
Banco Santander S.A.		85,330		645,985
Banque Cantonale Vaudoise (Registered)		410		241,125
Canadian Imperial Bank of Commerce		8,569		685,378
China CITIC Bank Corp. Ltd., Class H		110,000		100,050
Commercial International Bank Egypt SAE		70,835		513,573
Commonwealth Bank of Australia		44,444		3,115,356
HSBC Holdings PLC		57,933		576,994
Industrial & Commercial Bank of China Ltd., Class H		436,000		379,123
National Bank of Canada		9,827		395,514
Royal Bank of Canada		38,458		2,543,546
Skandinaviska Enskilda Banken AB, Class C		35,301		434,586
Sumitomo Mitsui Financial Group, Inc.		28,700		1,257,169
Swedbank AB, Class A		18,002		419,095
Westpac Banking Corp.		48,462		1,393,662
				14,564,790


	Shares		Value
Capital Markets – 3.4%
Banca Generali SpA		25,330	$	850,371
Coronation Fund Managers Ltd.		39,032		297,078
Guoco Group Ltd.		43,000		527,019
IGM Financial, Inc.		7,572		285,251
Macquarie Korea Infrastructure Fund		127,787		942,906
Partners Group Holding AG		2,055		645,957
				3,548,582
Chemicals – 1.6%
BASF SE		1,196		119,919
Chr Hansen Holding A/S		293		14,188
The Israel Corp. Ltd.		617		227,395
Nippon Paint Holdings Co., Ltd.		9,600		323,289
Sinopec Shanghai Petrochemical Co., Ltd., Class H		212,000		128,275
Synthos S.A.*		498,847		652,395
Uralkali PJSC (GDR)		9,959		147,493
Yara International ASA		1,356		69,532
				1,682,486
Commercial Services & Supplies – 2.1%
Dai Nippon Printing Co., Ltd.		3,000		31,148
Edenred		22,550		604,041
KEPCO Plant Service & Engineering Co., Ltd.		9,186		833,767
Societe BIC S.A.		4,510		770,939
				2,239,895
Communications Equipment – 0.6%
Telefonaktiebolaget LM Ericsson, Class A		60,222		632,124
Construction & Engineering – 0.9%
ACS Actividades de Construccion y Servicios S.A.		7,662		270,663
CIMIC Group Ltd.		15,416		256,441
Taisei Corp.		41,000		238,113
Vinci S.A.		2,050		125,929
				891,146
Construction Materials – 0.2%
Lafarge Malaysia Bhd		73,800		199,964

See Accompanying Notes to the Financial Statements.


172		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® International Quality Dividend Defensive Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Consumer Finance – 0.4%
Provident Financial PLC		10,045	$	465,415
Containers & Packaging – 0.3%
Amcor Ltd.		33,950		362,307
Diversified Financial Services – 1.0%
Investor AB, Class A		26,487		1,056,581
Diversified Telecommunication Services – 2.4%
Belgacom S.A.		8,036		299,903
Bezeq The Israeli Telecommunication Corp. Ltd.		459,528		870,817
Maroc Telecom		920		12,216
O2 Czech Republic A/S		56,261		461,292
Spark New Zealand Ltd.		94,259		213,139
TDC A/S		55,478		422,333
Telstra Corp. Ltd.		60,771		298,623
				2,578,323
Electric Utilities – 1.4%
Cia Energetica de Minas Gerais (Preference)		90,289		438,040
EDP – Energias de Portugal S.A.		67,032		268,303
Fortum Oyj		36,770		729,286
				1,435,629
Electronic Equipment, Instruments & Components – 1.2%
Largan Precision Co., Ltd.		13,000		1,307,386
Energy Equipment & Services – 1.4%
Amec Forster Wheeler PLC		50,392		710,898
TGS Nopec Geophysical Co. ASA		30,586		776,878
				1,487,776
Food & Staples Retailing – 0.6%
J Sainsbury PLC		18,163		75,948
Lawson, Inc.		8,200		590,658
				666,606
Food Products – 3.2%
IOI Corp. Bhd		114,800		139,894
Nestle S.A. (Registered)		13,290		1,034,092
Tate & Lyle PLC		89,800		823,171


	Shares		Value
Food Products – (continued)
Unilever N.V. (CVA)		30,665	$	1,342,338
				3,339,495
Gas Utilities – 1.1%
Empresa de Energia de Bogota S.A. ESP		378,061		270,196
Enagas S.A.		3,565		109,916
Gas Natural SDG S.A.		5,851		143,944
Snam SpA		128,064		668,146
				1,192,202
Health Care Technology – 0.2%
M3, Inc.		11,700		221,544
Hotels, Restaurants & Leisure – 2.4%
OPAP S.A.		10,314		91,881
Oriental Land Co., Ltd.		15,800		1,070,497
Sands China Ltd.		164,000		671,771
SJM Holdings Ltd.		502,000		639,227
				2,473,376
Independent Power and Renewable Electricity Producers – 1.5%
AES Tiete S.A.		168,100		800,970
AES Tiete S.A. (Preference)		135,300		771,003
				1,571,973
Industrial Conglomerates – 0.9%
HAP Seng Consolidated Bhd		582,200		755,233
Siemens AG (Registered)		1,354		147,945
				903,178
Insurance – 5.8%
Admiral Group PLC		34,469		825,276
Amlin PLC		1,386		9,772
Euler Hermes Group		1,804		197,094
Gjensidige Forsikring ASA		47,150		820,299
Great-West Lifeco, Inc.		6,191		189,168
Insurance Australia Group Ltd.		105,821		484,939
Muenchener Rueckversicherungs-Gesellschaft AG (Registered)		5,359		1,050,279
Power Financial Corp.		8,487		261,494
Sampo Oyj, Class A		16,154		784,875
SCOR SE		5,207		187,469

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			173

FlexShares^® International Quality Dividend Defensive Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Insurance – (continued)
Tryg A/S		820	$	88,957
Zurich Insurance Group AG*		3,978		1,229,618
				6,129,240
Internet Software & Services – 0.7%
Kakaku.com, Inc.		49,200		764,292
IT Services – 0.5%
Cielo S.A.		29,680		410,209
Infosys Ltd. (ADR)		3,280		101,614
				511,823
Machinery – 2.2%
Hino Motors Ltd.		60,700		796,348
Kone Oyj, Class B		17,671		761,754
Metso Oyj		990		28,211
Turk Traktor ve Ziraat Makineleri A/S		23,799		710,816
				2,297,129
Media – 3.4%
Lagardere S.C.A.		30,755		987,351
Multiplus S.A.		8,200		90,775
ProSiebenSat.1 Media AG (Registered)		7,831		402,686
Reed Elsevier N.V.		33,309		803,781
Shaw Communications, Inc., Class B		16,333		371,900
Sky PLC		54,978		909,930
				3,566,423
Metals & Mining – 3.0%
Antofagasta PLC		22,480		269,978
Eregli Demir ve Celik Fabrikalari TAS		419,799		706,165
Fortescue Metals Group Ltd.		381,997		653,821
Kumba Iron Ore Ltd.		41,328		553,614
MMC Norilsk Nickel OJSC (ADR)		53,836		1,011,040
				3,194,618
Multiline Retail – 0.0%^†
Marks & Spencer Group PLC		4,879		41,500


	Shares		Value
Multi-Utilities – 0.9%
E.ON SE		23,985	$	375,195
GDF Suez		25,258		515,253
				890,448
Oil, Gas & Consumable Fuels – 7.4%
Baytex Energy Corp.		7,727		150,362
BP PLC		63,509		458,806
Canadian Oil Sands Ltd.		20,459		221,439
Crescent Point Energy Corp.		9,020		234,650
Ecopetrol S.A.*		845,420		725,758
Eni SpA		67,389		1,297,309
Indo Tambangraya Megah Tbk PT		512,500		498,168
Royal Dutch Shell PLC, Class A		10,906		345,168
Royal Dutch Shell PLC, Class B		39,359		1,266,857
Showa Shell Sekiyu KK		12,300		119,022
Statoil ASA		20,285		428,016
Surgutneftegas OAO (Preference) (ADR)		150,352		1,127,640
TOTAL S.A.		5,740		311,853
Vermilion Energy, Inc.		12,956		621,246
				7,806,294
Pharmaceuticals – 7.0%
Astellas Pharma, Inc.		33,600		524,904
Bayer AG (Registered)*		646		94,031
GlaxoSmithKline PLC		135,710		3,158,525
Novartis AG (Registered)		7,764		800,929
Orion Oyj, Class B		23,921		784,037
Roche Holding AG		3,802		1,093,242
Sanofi S.A.		1,599		163,409
Santen Pharmaceutical Co., Ltd.		1,100		14,532
Teva Pharmaceutical Industries Ltd.		12,411		758,061
				7,391,670
Professional Services – 0.3%
Bureau Veritas S.A.		14,145		333,250
Real Estate Investment Trusts (REITs) – 1.2%
Gecina S.A.		1,025		140,469
The GPT Group		40,631		143,253
Hui Xian Real Estate Investment Trust		820,000		457,406

See Accompanying Notes to the Financial Statements.


174		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® International Quality Dividend Defensive Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Real Estate Investment Trusts (REITs) – (continued)
The Link REIT		20,500	$	127,346
RioCan Real Estate Investment Trust		17,394		428,801
				1,297,275
Real Estate Management & Development – 3.9%
Country Garden Holdings Co., Ltd.		999,533		541,602
Daito Trust Construction Co., Ltd.		8,100		945,914
Evergrande Real Estate Group Ltd.		2,118,000		2,008,386
Ruentex Development Co., Ltd.		369,000		656,648
				4,152,550
Semiconductors & Semiconductor Equipment – 0.7%
Radiant Opto-Electronics Corp.		174,120		574,222
Taiwan Semiconductor Manufacturing Co., Ltd.		38,000		182,394
				756,616
Software – 0.6%
COLOPL, Inc.		24,100		497,829
GungHo Online Entertainment, Inc.		32,800		134,851
				632,680
Specialty Retail – 2.3%
Fast Retailing Co., Ltd.		2,400		948,508
Hennes & Mauritz AB, Class B		26,612		1,059,018
Sanrio Co., Ltd.		16,400		441,280
				2,448,806
Technology Hardware, Storage & Peripherals – 2.4%
Asustek Computer, Inc.		83,000		882,143
Canon, Inc.		13,400		479,587
Inventec Corp.		1,091,000		773,026
Lite-On Technology Corp.		114,264		144,761
Samsung Electronics Co., Ltd.		178		234,123
				2,513,640
Textiles, Apparel & Luxury Goods – 1.6%
Grendene S.A.		12,300		72,962
HUGO BOSS AG		5,617		693,613


	Shares		Value
Textiles, Apparel & Luxury Goods – (continued)
Ruentex Industries Ltd.		364,000	$	894,965
				1,661,540
Tobacco – 4.2%
British American Tobacco PLC		41,149		2,271,743
Imperial Tobacco Group PLC		20,413		1,001,320
Japan Tobacco, Inc.		28,700		1,009,908
Swedish Match AB		4,256		130,886
				4,413,857
Transportation Infrastructure – 1.3%
CCR S.A.		8,200		45,251
EcoRodovias Infraestrutura e Logistica S.A.		179,800		531,777
Hutchison Port Holdings Trust, Class U		411,100		277,492
SIA Engineering Co., Ltd.		147,600		466,909
				1,321,429
Wireless Telecommunication Services – 5.5%
Advanced Info Service PCL (NVDR)		31,300		227,878
DiGi.Com Bhd		139,400		235,236
Freenet AG		13,332		434,207
Mobile TeleSystems OJSC (ADR)		104,296		1,259,896
Sistema JSFC (GDR)		59,017		445,578
Tele2 AB, Class B		66,584		888,281
Vodafone Group PLC		661,690		2,344,353
				5,835,429
Total Common Stocks (Cost $101,128,728)				103,740,519

Total Investment Securities (Cost $101,128,728) – 98.3%				103,740,519
Other assets less liabilities – 1.7%				1,761,219
NET ASSETS – 100.0%			$	105,501,738

*	Non-income producing security.

^	Security fair valued in accordance with procedures adopted by the Board of Trustees. At April 30, 2015, the value of these securities amounted to $16,852 or 0.02% of net assets.

^†	Amount represents less than 0.05%.

Percentages shown are based on Net Assets.

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			175

FlexShares^® International Quality Dividend Defensive Index Fund (cont.)

Abbreviations:

ADR – American Depositary Receipt

AUD – Australian Dollar

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

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, 2015, 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	$	6,081,936
Aggregate gross unrealized depreciation		(3,618,669	)
Net unrealized appreciation	$	2,463,267
Federal income tax cost of investments	$	101,277,252

Futures Contracts

FlexShares^® International Quality Dividend Defensive Index Fund had the following open long futures contracts as of April 30, 2015:


	Number of Contracts		Expiration Date		Notional Amount at Value		Unrealized Appreciation (Depreciation)
E-mini MSCI EAFE Index Futures Contracts		2		06/19/15	$	189,420	$	(824	)
MSCI Emerging Markets Mini Index Futures Contract		1		06/19/15		51,935		368
SGX S&P CNX Nifty Index Futures Contracts		88		05/28/15		1,453,144		(15,075	)
							$	(15,531	)

Forward Foreign Currency Contracts

FlexShares^® International Quality Dividend Defensive Index Fund had the following outstanding contracts as of April 30, 2015:


Contracts to Receive		Counterparty	In Exchange For			Receipt Date		Unrealized Appreciation (Depreciation)
AUD	321,945	Morgan Stanley		USD	250,000		06/17/15	$	3,296
CAD	171,072	Goldman Sachs		USD	140,000		06/17/15		1,148
CHF	177,599	UBS AG		USD	176,851		06/17/15		13,023
CHF	178,054	Bank of Montreal		USD	180,000		06/17/15		10,360
DKK	549,791	Morgan Stanley		USD	78,270		06/17/15		4,416
EUR	225,651	Bank of Montreal		USD	240,000		06/17/15		12,999
EUR	148,848	Bank of Montreal		USD	160,000		06/17/15		6,889
GBP	451,802	Bank of Montreal		USD	665,000		06/17/15		29,088
INR	146,348,000	Citibank N.A.		USD	2,288,501		06/17/15		(6,555	)
JPY	24,076,000	Morgan Stanley		USD	198,742		06/17/15		2,545
NOK	1,622,080	Bank of Montreal		USD	200,000		06/17/15		14,978
NZD	430,522	Bank of Montreal		USD	315,000		06/17/15		11,326
RUB	13,621,000	Morgan Stanley		USD	209,764		06/17/15		49,794
RUB	11,979,320	Societe Generale		USD	200,000		06/17/15		28,274
RUB	7,695,000	Bank of New York		USD	150,000		06/17/15		(3,366	)
RUB	2,906,605	Societe Generale		USD	50,000		06/17/15		5,388

See Accompanying Notes to the Financial Statements.


176		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® International Quality Dividend Defensive Index Fund (cont.)


Contracts to Receive		Counterparty	In Exchange For			Receipt Date		Unrealized Appreciation (Depreciation)
SEK	1,814,022	Bank of Montreal		USD	210,000		06/17/15	$	7,431
USD	125,000	Bank of Montreal		AUD	164,912		06/17/15		(4,747	)
USD	48,735	Morgan Stanley		AUD	64,000		06/17/15		(1,618	)
USD	154,675	Morgan Stanley		CAD	197,704		06/17/15		(8,447	)
USD	270,000	UBS AG		CHF	258,254		06/17/15		(6,104	)
USD	265,000	Bank of Montreal		DKK	1,853,662		06/17/15		(13,783	)
USD	171,954	Morgan Stanley		EUR	162,325		06/17/15		(10,044	)
USD	315,000	Morgan Stanley		EUR	293,074		06/17/15		(13,595	)
USD	250,000	Goldman Sachs		GBP	167,635		06/17/15		(7,531	)
USD	326,242	Morgan Stanley		GBP	220,466		06/17/15		(12,454	)
USD	389,836	Morgan Stanley		HKD	3,027,508		06/17/15		(753	)
USD	280,000	Citibank N.A.		INR	17,818,528		06/17/15		2,163
USD	220,000	Citibank N.A.		INR	14,099,580		06/17/15		151
USD	265,000	Citibank N.A.		INR	16,753,379		06/17/15		3,771
USD	160,000	Bank of Montreal		JPY	19,329,440		06/17/15		(1,603	)
USD	115,000	Bank of New York		NOK	896,223		06/17/15		(3,779	)
USD	394,991	Morgan Stanley		NZD	539,171		06/17/15		(13,688	)
USD	25,000	Bank of New York		RUB	1,372,500		06/17/15		(1,154	)
USD	322,603	Morgan Stanley		SEK	2,784,307		06/17/15		(11,127	)
USD	100,000	Bank of Montreal		SEK	867,810		06/17/15		(4,017	)
USD	2,153	Morgan Stanley		SGD	3,000		06/17/15		(110	)
USD	165,000	Societe Generale		TWD	5,131,335		06/17/15		(2,564	)
								$	80,001

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			177

FlexShares^® International Quality Dividend Defensive Index Fund (cont.)

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, 2015:


Australia	7.1	%
Belgium	1.0
Brazil	3.0
Canada	6.1
Chile	0.1
China	3.4
Colombia	0.9
Czech Republic	0.4
Denmark	0.5
Egypt	0.5
Finland	3.1
France	4.1
Germany	3.5
Greece	0.1
Hong Kong	1.9
India	0.1
Indonesia	0.5
Israel	1.8
Italy	2.7
Japan	12.3
Malaysia	1.3
Morocco	0.0	^†
Netherlands	2.0
New Zealand	0.2
Norway	2.0
Poland	0.6
Portugal	0.3
Russia	3.8
Singapore	0.7
South Africa	0.8
South Korea	1.9
Spain	1.1
Sweden	4.4
Switzerland	4.8
Taiwan	5.1
Thailand	0.2
Turkey	1.3
United Kingdom	14.7
Other¹	1.7
	100.0	%

^†	Amount represents less than 0.05%.

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

See Accompanying Notes to the Financial Statements.


178		FLEXSHARES SEMIANNUAL REPORT

Schedule of Investments

FlexShares^® International Quality Dividend Dynamic Index Fund

April 30, 2015 (Unaudited)


	Shares		Value
COMMON STOCKS – 99.0%
Air Freight & Logistics – 0.3%
Toll Holdings Ltd.		33,156	$	234,843
Auto Components – 4.0%
Aisin Seiki Co., Ltd.		5,400		247,731
Cie Generale des Etablissements Michelin		2,268		253,302
Continental AG*		2,727		643,692
Faurecia		3,348		158,993
GKN PLC		95,337		514,687
Nokian Renkaat Oyj		5,265		171,740
Plastic Omnium S.A.		5,022		140,150
Sumitomo Rubber Industries Ltd.		10,800		200,441
Valeo S.A.		3,726		598,302
				2,929,038
Automobiles – 4.1%
Daihatsu Motor Co., Ltd.		16,200		235,006
Daimler AG (Registered)		8,721		843,644
Fuji Heavy Industries Ltd.		18,900		635,607
Porsche Automobil Holding SE (Preference)		2,052		196,136
Tofas Turk Otomobil Fabrikasi A/S		83,592		512,461
Toyota Motor Corp.		5,400		377,147
Yamaha Motor Co., Ltd.		8,100		191,619
				2,991,620
Banks – 13.0%
Agricultural Bank of China Ltd., Class H		243,000		137,314
Australia & New Zealand Banking Group Ltd.		23,355		626,138
Banco Santander S.A.* ^		2,832		21,439
Banco Santander S.A.		130,302		986,443
Bank Handlowy w Warszawie S.A.		16,956		535,586
Bank of China Ltd., Class H		1,242,000		854,049
China CITIC Bank Corp. Ltd., Class H		729,000		663,056
China Construction Bank Corp., Class H		1,296,000		1,262,368
Commonwealth Bank of Australia		30,105		2,110,246


	Shares		Value
Banks – (continued)
HSBC Holdings PLC		41,364	$	411,972
Royal Bank of Canada		1,107		73,215
Societe Generale S.A.		6,750		338,136
Sumitomo Mitsui Trust Holdings, Inc.		54,000		239,293
Swedbank AB, Class A		24,273		565,087
The Toronto-Dominion Bank		864		39,732
Westpac Banking Corp.		24,408		701,921
				9,565,995
Beverages – 0.5%
Anheuser-Busch InBev N.V.		162		19,769
Coca-Cola Amatil Ltd.		21,762		176,282
Kirin Holdings Co., Ltd.		13,900		184,218
				380,269
Biotechnology – 0.2%
Grifols S.A. (Preference), Class B		4,104		134,053
Building Products – 0.8%
Cie de Saint-Gobain		4,671		213,027
TOTO Ltd.		27,000		383,555
				596,582
Capital Markets – 4.1%
Aberdeen Asset Management PLC		23,679		172,883
Ashmore Group PLC		28,917		137,403
Banca Generali SpA		15,741		528,452
CI Financial Corp.		5,373		157,297
Daiwa Securities Group, Inc.		81,000		676,861
Henderson Group PLC		43,443		186,463
IGM Financial, Inc.		15,228		573,667
Macquarie Group Ltd.		3,078		189,293
Nomura Holdings, Inc.		37,800		244,293
Schroders PLC (Non-Voting)		4,536		170,434
				3,037,046
Chemicals – 3.4%
BASF SE		9,180		920,449
Methanex Corp.		10,476		627,998
Mitsubishi Chemical Holdings Corp.		32,400		202,327

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			179

FlexShares^® International Quality Dividend Dynamic Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Chemicals – (continued)
Sumitomo Chemical Co., Ltd.		27,000	$	152,294
Synthos S.A.*		449,739		588,171
				2,491,239
Commercial Services & Supplies – 0.0%^†
Dai Nippon Printing Co., Ltd.		1,000		10,383
Communications Equipment – 0.4%
Nokia Oyj		9,288		62,914
Telefonaktiebolaget LM Ericsson, Class B		21,006		230,050
				292,964
Construction & Engineering – 1.8%
CIMIC Group Ltd.		31,401		522,347
HOCHTIEF AG		6,939		538,220
Vinci S.A.		4,725		290,250
				1,350,817
Construction Materials – 0.7%
Siam City Cement PCL (NVDR)		43,200		480,946
Distributors – 0.3%
Inchcape PLC		14,823		189,523
Diversified Financial Services – 0.5%
Industrivarden AB, Class A		9,801		209,979
Industrivarden AB, Class C		7,182		149,483
				359,462
Diversified Telecommunication Services – 2.5%
Belgacom S.A.		4,320		161,222
Bezeq The Israeli Telecommunication Corp. Ltd.		304,668		577,354
Elisa Oyj		5,130		156,874
Telefonica S.A.		52,612		804,138
TeliaSonera AB		23,868		148,633
				1,848,221
Electric Utilities – 0.8%
CEZ A/S		6,804		176,645
EDP – Energias de Portugal S.A.		101,358		405,696
				582,341


	Shares		Value
Electrical Equipment – 1.5%
Mitsubishi Electric Corp.		54,000	$	705,741
Schneider Electric SE		4,860		364,002
				1,069,743
Electronic Equipment, Instruments & Components – 1.7%
Hexagon AB, Class B		2,160		80,137
Hoya Corp.		16,200		628,263
Omron Corp.		8,100		373,627
Spectris PLC		4,050		133,626
				1,215,653
Energy Equipment & Services – 0.5%
Amec Forster Wheeler PLC		27,567		388,898
Food & Staples Retailing – 3.3%
Casino Guichard Perrachon S.A.		1,782		157,749
Delhaize Group S.A.		1,458		117,778
Distribuidora Internacional de Alimentacion S.A.		72,711		584,674
Kesko Oyj, Class B		3,807		156,176
Koninklijke Ahold N.V.		32,697		633,848
METRO AG (Preference)		6,669		174,157
Seven & i Holdings Co., Ltd.		8,100		350,276
Wesfarmers Ltd.		6,696		230,853
				2,405,511
Food Products – 0.8%
Nestle S.A. (Registered)		7,560		588,242
Gas Utilities – 0.3%
Empresa de Energia de Bogota S.A. ESP		232,605		166,240
Gas Natural SDG S.A.		1,701		41,847
				208,087
Health Care Providers & Services – 0.3%
Medipal Holdings Corp.		13,500		185,122
Household Durables – 0.2%
Berkeley Group Holdings PLC		3,888		150,507
Independent Power and Renewable Electricity Producers – 1.4%
AES Tiete S.A.		113,400		540,333
AES Tiete S.A. (Preference)		86,400		492,348
				1,032,681

See Accompanying Notes to the Financial Statements.


180		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® International Quality Dividend Dynamic Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Industrial Conglomerates – 1.0%
Siemens AG (Registered)		6,966	$	761,139
Insurance – 7.9%
Ageas		4,401		165,305
Allianz SE (Registered)		8,370		1,431,236
AXA S.A.		16,335		413,949
Baloise Holding AG (Registered)*		81		10,573
CNP Assurances		7,830		140,690
The Dai-ichi Life Insurance Co., Ltd.		40,500		668,062
Manulife Financial Corp.		19,899		360,770
Mapfre S.A.		45,495		169,354
Mediolanum SpA		70,038		590,570
Muenchener Rueckversicherungs-Gesellschaft AG (Registered)		2,511		492,116
Old Mutual PLC		63,126		227,874
T&D Holdings, Inc.		45,900		665,276
Zurich Insurance Group AG*		1,458		450,674
				5,786,449
Machinery – 4.5%
Hino Motors Ltd.		40,500		531,336
Hitachi Construction Machinery Co., Ltd.		8,100		144,375
IMI PLC		17,280		332,469
JTEKT Corp.		27,000		462,522
Komatsu Ltd.		27,000		546,227
Metso Oyj		14,094		401,617
Mitsubishi Heavy Industries Ltd.		27,000		150,647
NGK Insulators Ltd.		27,000		610,078
NSK Ltd.		5,400		85,104
OC Oerlikon Corp. AG (Registered)*		5,400		70,893
				3,335,268
Marine – 0.2%
Seaspan Corp.		8,100		160,542
Media – 1.3%
Informa PLC		17,469		149,529
Lagardere S.C.A.		9,423		302,514
UBM PLC		26,298		228,134
WPP PLC		11,961		280,495
				960,672


	Shares		Value
Metals & Mining – 2.4%
Antofagasta PLC		13,986	$	167,968
BHP Billiton PLC		10,314		247,419
Kumba Iron Ore Ltd.		21,438		287,175
MMC Norilsk Nickel OJSC (ADR)		31,995		600,866
Teck Resources Ltd., Class B		25,272		381,610
voestalpine AG		2,457		103,024
				1,788,062
Multi-Utilities – 0.8%
E.ON SE		18,009		281,712
GDF Suez		13,500		275,395
				557,107
Oil, Gas & Consumable Fuels – 6.7%
BP PLC		78,624		568,000
Canadian Natural Resources Ltd.		5,805		192,134
Cenovus Energy, Inc.		5,373		100,828
China Shenhua Energy Co., Ltd., Class H		67,500		175,474
Crescent Point Energy Corp.		5,724		148,907
Eni SpA		47,304		910,652
Gazprom OAO (ADR)		40,851		242,001
Indo Tambangraya Megah Tbk PT		337,500		328,062
Royal Dutch Shell PLC, Class A		15,039		475,975
Royal Dutch Shell PLC, Class B		26,433		850,805
Suncor Energy, Inc.		14,904		483,449
TOTAL S.A.		2,997		162,827
TransCanada Corp.		6,642		307,081
				4,946,195
Paper & Forest Products – 1.1%
Mondi PLC		15,255		310,153
Oji Holdings Corp.		27,000		120,481
Stora Enso Oyj, Class R		37,260		389,918
				820,552
Personal Products – 0.7%
Kao Corp.		10,800		518,837
Pharmaceuticals – 6.0%
AstraZeneca PLC		11,529		796,654
Bayer AG (Registered)*		648		94,323
GlaxoSmithKline PLC		57,240		1,332,208

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			181

FlexShares^® International Quality Dividend Dynamic Index Fund (cont.)


	Shares		Value
COMMON STOCKS – (continued)
Pharmaceuticals – (continued)
Novartis AG (Registered)		4,995	$	515,281
Orion Oyj, Class B		15,957		523,008
Roche Holding AG		3,645		1,035,072
Sanofi S.A.		945		96,573
				4,393,119
Professional Services – 0.4%
Adecco S.A. (Registered)*		2,295		187,882
Randstad Holding N.V.		2,349		140,295
				328,177
Real Estate Investment Trusts (REITs) – 2.0%
Gecina S.A.		1,350		185,008
Hui Xian Real Estate Investment Trust		972,000		542,194
Klepierre		3,510		170,305
Redefine Properties Ltd.		163,809		165,232
RioCan Real Estate Investment Trust		7,047		173,724
Unibail-Rodamco SE		891		246,108
				1,482,571
Real Estate Management & Development – 3.8%
Agile Property Holdings Ltd.		270,000		226,418
Evergrande Real Estate Group Ltd.		1,350,000		1,280,133
KWG Property Holding Ltd.		621,236		630,762
Ruentex Development Co., Ltd.		351,000		624,616
				2,761,929
Semiconductors & Semiconductor Equipment – 1.0%
Infineon Technologies AG		17,874		211,903
Radiant Opto-Electronics Corp.		54,000		178,084
STMicroelectronics N.V.		22,329		178,148
Taiwan Semiconductor Manufacturing Co., Ltd.		27,000		129,596
				697,731
Technology Hardware, Storage & Peripherals – 2.6%
Brother Industries Ltd.		32,400		519,559
Canon, Inc.		10,800		386,533
Inventec Corp.		459,000		325,224
Samsung Electronics Co., Ltd.		135		177,565


	Shares		Value
Technology Hardware, Storage & Peripherals – (continued)
Seiko Epson Corp.		27,000	$	474,028
				1,882,909
Textiles, Apparel & Luxury Goods – 0.8%
Ruentex Industries Ltd.		243,570		598,864
Tobacco – 2.6%
British American Tobacco PLC		34,398		1,899,036
Transportation Infrastructure – 1.0%
Abertis Infraestructuras S.A.		28,377		523,552
Hutchison Port Holdings Trust, Class U		278,100		187,717
				711,269
Wireless Telecommunication Services – 4.8%
Freenet AG		4,806		156,526
Intouch Holdings PCL (NVDR)		224,100		523,455
Sistema JSFC (GDR)		84,500		637,975
Total Access Communication PCL (NVDR)		189,000		497,369
Vodacom Group Ltd.		29,808		369,703
Vodafone Group PLC		368,469		1,305,477
				3,490,505
Total Common Stocks (Cost $69,836,175)				72,600,719

Total Investment Securities (Cost $69,836,175) – 99.0%				72,600,719
Other assets less liabilities – 1.0%				707,202
NET ASSETS – 100.0%			$	73,307,921

*	Non-income producing security.

^	Security fair valued in accordance with procedures adopted by the Board of Trustees. At April 30, 2015, the value of these securities amounted to $21,439 or 0.03% of net assets.

^†	Amount represents less than 0.05%.

Percentages shown are based on Net Assets.

Abbreviations:

ADR – American Depositary Receipt

CAD – Canadian Dollar

CHF – Swiss Franc

CZK – Czech Koruna

EUR – Euro

See Accompanying Notes to the Financial Statements.


182		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® International Quality Dividend Dynamic Index Fund (cont.)

GBP – British Pound

GDR – Global Depositary Receipt

HKD – Hong Kong Dollar

INR – Indian Rupee

JPY – Japanese Yen

MXN – Mexican Peso

NVDR – Non-Voting Depositary Receipt

REIT – Real Estate Investment Trust

SEK – Swedish Krona

USD – US Dollar

As of April 30, 2015, 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	$	4,689,460
Aggregate gross unrealized depreciation		(2,158,223	)
Net unrealized appreciation	$	2,531,237
Federal income tax cost of investments	$	70,069,482

Futures Contracts

FlexShares^® International Quality Dividend Dynamic Index Fund had the following open long futures contracts as of April 30, 2015:


	Number of Contracts		Expiration Date		Notional Amount at Value		Unrealized Appreciation (Depreciation)
E-mini MSCI EAFE Index Futures Contract		1		06/19/15	$	94,710	$	128
MSCI Emerging Markets Mini Index Futures Contracts		2		06/19/15		103,870		(434	)
SGX S&P CNX Nifty Index Futures Contracts		27		05/28/15		445,851		(4,736	)
							$	(5,042	)

Forward Foreign Currency Contracts

FlexShares^® International Quality Dividend Dynamic Index Fund had the following outstanding contracts as of April 30, 2015:


Contracts to Receive		Counterparty	In Exchange For		Receipt Date		Unrealized Appreciation (Depreciation)
CHF	76,182	Bank of Montreal	USD	80,000		06/17/15	$	1,447
CZK	1,275,260	Bank of Montreal	USD	50,000		06/17/15		2,125
EUR	37,165	Bank of Montreal	USD	40,000		06/17/15		1,670
GBP	80,484	Bank of Montreal	USD	120,000		06/17/15		3,645
INR	30,567,200	Citibank N.A.	USD	477,991		06/17/15		(1,369	)
JPY	10,232,300	Morgan Stanley	USD	84,466		06/17/15		1,082
MXN	1,477,373	Bank of Montreal	USD	97,000		06/17/15		(1,133	)
SEK	260,077	Bank of Montreal	USD	30,000		06/17/15		1,173
USD	110,000	Bank of Montreal	CAD	134,266		06/17/15		(781	)
USD	49,125	UBS AG	CHF	49,333		06/17/15		(3,618	)
USD	53,042	Societe Generale	CZK	1,366,833		06/17/15		(2,826	)
USD	34,792	Morgan Stanley	EUR	32,843		06/17/15		(2,032	)
USD	71,358	Morgan Stanley	GBP	48,222		06/17/15		(2,724	)
USD	74,968	Morgan Stanley	HKD	582,213		06/17/15		(145	)
USD	100,000	Bank of Montreal	JPY	11,918,600		06/17/15		355
USD	95,043	UBS AG	MXN	1,476,150		06/17/15		(745	)
USD	141,018	Morgan Stanley	SEK	1,217,088		06/17/15		(4,864	)
							$	(8,740	)

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			183

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, 2015:


Australia	6.5	%
Austria	0.1
Belgium	0.6
Brazil	1.4
Canada	4.9
China	8.1
Colombia	0.2
Czech Republic	0.2
Finland	2.5
France	6.4
Germany	9.2
Indonesia	0.5
Israel	0.8
Italy	2.8
Japan	16.5
Netherlands	1.1
Poland	1.5
Portugal	0.6
Russia	2.0
Singapore	0.3
South Africa	1.1
South Korea	0.2
Spain	4.5
Sweden	1.9
Switzerland	3.9
Taiwan	2.5
Thailand	2.1
Turkey	0.7
United Kingdom	15.9
Other¹	1.0
	100.0	%

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

See Accompanying Notes to the Financial Statements.


184		FLEXSHARES SEMIANNUAL REPORT

Schedule of Investments

FlexShares^® iBoxx 3-Year Target Duration TIPS Index Fund

April 30, 2015 (Unaudited)


	Principal Amount		Value
U.S. TREASURY OBLIGATIONS – 99.8%
U.S. Treasury Inflation Index Notes
2.50%, due 07/15/16	$	62,626,594	$	65,793,630
2.38%, due 01/15/17		54,090,854		57,355,755
0.13%, due 04/15/17		501,033,019		511,288,163
2.63%, due 07/15/17		173,058,116		188,105,556
1.63%, due 01/15/18		200,615,013		214,252,269
0.13%, due 04/15/18		553,860,462		566,235,920
1.38%, due 07/15/18		177,869,062		190,806,041
2.13%, due 01/15/19		43,571,877		48,045,820
0.13%, due 04/15/19		135,126,018		137,934,369
1.88%, due 07/15/19		44,856,245		49,612,311
1.38%, due 01/15/20		55,450,788		60,154,624
0.13%, due 04/15/20		50,144,567		51,216,648
				2,140,801,106
Total U.S. Treasury Obligations (Cost $2,142,085,138)				2,140,801,106

Total Investment Securities (Cost $2,142,085,138) – 99.8%				2,140,801,106
Other assets less liabilities – 0.2%				4,436,854
NET ASSETS – 100.0%			$	2,145,237,960

Percentages shown are based on Net Assets.

As of April 30, 2015, 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	$	12,030,380
Aggregate gross unrealized depreciation		(13,411,060	)
Net unrealized depreciation	$	(1,380,680	)
Federal income tax cost of investments	$	2,142,181,786

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			185

Schedule of Investments

FlexShares^® iBoxx 5-Year Target Duration TIPS Index Fund

April 30, 2015 (Unaudited)


	Principal Amount		Value
U.S. TREASURY OBLIGATIONS – 99.8%
U.S. Treasury Inflation Index Notes
1.38%, due 07/15/18	$	8,621,929	$	9,249,029
2.13%, due 01/15/19		8,531,801		9,407,843
0.13%, due 04/15/19		26,498,499		27,049,223
1.88%, due 07/15/19		9,215,516		10,192,628
1.38%, due 01/15/20		42,819,523		46,451,861
0.13%, due 04/15/20		37,696,879		38,502,831
1.25%, due 07/15/20		72,442,927		78,846,145
1.13%, due 01/15/21		81,699,293		87,988,273
0.63%, due 07/15/21		77,485,516		81,190,200
0.13%, due 01/15/22		22,649,390		22,840,268
0.13%, due 07/15/22		22,151,014		22,403,738
				434,122,039
Total U.S. Treasury Obligations (Cost $430,978,999)				434,122,039

Total Investment Securities (Cost $430,978,999) – 99.8%				434,122,039
Other assets less liabilities – 0.2%				980,956
NET ASSETS – 100.0%			$	435,102,995

Percentages shown are based on Net Assets.

As of April 30, 2015, 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	$	4,051,937
Aggregate gross unrealized depreciation		(924,292	)
Net unrealized appreciation	$	3,127,645
Federal income tax cost of investments	$	430,994,394

See Accompanying Notes to the Financial Statements.


186		FLEXSHARES SEMIANNUAL REPORT

Schedule of Investments

FlexShares^® Disciplined Duration MBS Index Fund

April 30, 2015 (Unaudited)


	Principal Amount		Value
U.S. GOVERNMENT & AGENCY SECURITIES – 96.1%
Federal Home Loan Mortgage Corp.
4.00%, due 06/01/19	$	54,974	$	58,039
4.50%, due 07/01/19		92,397		96,809
5.00%, due 07/01/20		115,207		120,953
2.50%, due 04/01/28		53,901		55,368
2.50%, due 11/01/28		38,252		39,284
6.00%, due 04/01/34		157,399		180,977
5.50%, due 07/01/38		16,484		18,602
5.50%, due 12/01/38		45,846		51,715
5.00%, due 02/01/39		53,241		59,121
6.50%, due 04/01/39		125,698		145,464
5.00%, due 05/01/39		275,846		308,764
5.00%, due 08/01/39		22,214		24,871
5.00%, due 09/01/39		32,272		35,836
4.50%, due 10/01/39		57,635		62,776
4.00%, due 02/01/40		31,116		33,340
5.50%, due 06/01/40		138,331		156,089
4.50%, due 03/01/41		107,673		117,541
5.50%, due 04/01/41		73,648		83,267
3.00%, due 03/01/43		55,806		56,831
4.00%, due 06/01/44		41,168		43,911
4.50%, due 09/01/44		288,479		314,291
4.50%, due 12/01/44		222,360		242,391
3.50%, due 05/15/45 TBA		250,000		261,557
6.00%, due 05/15/45 TBA		80,000		91,135
Federal National Mortgage Association
4.50%, due 11/01/18		117,557		123,029
4.00%, due 07/01/19		52,175		55,071
5.00%, due 07/01/19		377,599		400,315
4.50%, due 04/01/20		68,352		71,988
5.00%, due 09/01/20		153,356		165,577
5.00%, due 11/01/21		65,769		69,884
5.50%, due 04/01/22		308,335		336,761
5.00%, due 12/01/23		67,791		75,422
5.00%, due 07/01/24		304,488		338,766
5.00%, due 02/01/25		182,090		202,590
2.50%, due 06/01/27		48,347		49,702
2.50%, due 08/01/27		81,566		83,860
2.50%, due 12/01/27		293,419		301,662
3.00%, due 03/01/28		83,286		87,495
2.50%, due 06/01/28		67,780		69,643
3.00%, due 06/01/28		103,606		109,143


	Principal Amount		Value
3.00%, due 07/01/28	$	80,704	$	84,908
2.50%, due 09/01/28		244,292		250,994
3.00%, due 11/01/28		75,766		79,713
3.00%, due 05/25/30 TBA		45,000		47,093
6.50%, due 09/01/34		120,875		146,382
6.00%, due 11/01/35		98,122		112,913
5.50%, due 02/01/37		34,359		39,501
6.00%, due 08/01/37		180,613		207,764
5.50%, due 09/01/38		85,740		96,985
5.00%, due 01/01/39		33,359		37,114
5.50%, due 01/01/40		97,321		110,601
4.50%, due 04/01/40		55,919		61,048
5.50%, due 04/01/40		22,980		26,421
3.50%, due 11/01/40		241,474		253,593
3.50%, due 01/01/41		70,688		74,236
3.50%, due 02/01/41		139,716		146,724
4.00%, due 02/01/41		66,987		71,850
4.50%, due 02/01/41		94,303		103,432
5.50%, due 04/01/41		35,757		40,649
4.50%, due 06/01/41		70,772		78,379
4.50%, due 08/01/41		101,285		110,921
5.50%, due 09/01/41		135,774		153,524
4.00%, due 01/01/42		163,760		175,211
4.50%, due 01/01/42		365,417		400,363
2.50%, due 11/01/42		141,786		139,428
2.50%, due 03/01/43		147,189		144,741
3.00%, due 05/01/43		428,657		437,521
3.00%, due 06/01/43		178,617		182,169
3.50%, due 07/01/43		102,083		107,176
4.00%, due 08/01/43		78,129		83,515
4.00%, due 09/01/43		180,966		195,832
4.50%, due 09/01/43		230,446		252,705
3.00%, due 11/01/43		86,225		87,900
5.00%, due 06/01/44		119,581		133,671
4.00%, due 02/01/45		315,363		337,541
3.00%, due 03/01/45		124,653		127,026
4.00%, due 04/01/45		99,861		108,109
3.00%, due 05/25/45 TBA		200,000		203,520
6.00%, due 05/25/45 TBA		290,000		331,458
6.50%, due 05/25/45 TBA		140,000		161,558
Government National Mortgage Association
2.50%, due 12/20/28		132,467		136,338
5.50%, due 06/15/33		318,517		364,759
6.00%, due 03/15/39		48,366		55,315

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			187

FlexShares^® Disciplined Duration MBS Index Fund (cont.)


	Principal Amount		Value
U.S. GOVERNMENT & AGENCY SECURITIES – (continued)
5.00%, due 04/15/39	$	83,841	$	94,022
5.00%, due 09/15/39		102,267		116,377
5.50%, due 09/15/39		67,721		76,527
4.00%, due 09/20/39		88,014		94,530
5.00%, due 11/15/39		6,167		6,913
5.50%, due 12/15/39		191,692		216,618
4.00%, due 08/15/40		62,358		67,543
4.00%, due 10/15/40		50,669		54,945
5.50%, due 01/20/41		90,609		103,220
4.00%, due 03/15/41		12,062		13,066
5.50%, due 09/20/41		346,432		394,743
3.50%, due 01/15/42		65,274		68,923
5.50%, due 02/20/42		89,536		100,685
3.50%, due 08/20/42		110,417		116,850
3.00%, due 12/20/42		71,693		74,089
3.50%, due 12/20/42		36,079		38,643
5.50%, due 02/20/43		52,395		58,939
3.50%, due 03/15/43		81,598		86,412
3.00%, due 03/20/43		299,868		309,890
3.50%, due 06/15/43		435,054		462,407
5.00%, due 01/20/44		22,637		25,242
4.00%, due 09/15/44		173,803		187,955
3.50%, due 10/15/44		156,208		164,941
3.50%, due 10/20/44		46,893		49,562
4.00%, due 12/15/44		284,046		307,174
3.00%, due 12/20/44		122,728		126,689
3.50%, due 12/20/44		145,728		154,021
3.00%, due 01/20/45		148,467		153,268
4.00%, due 01/20/45		149,355		162,475
3.50%, due 02/20/45		395,934		420,032
3.00%, due 03/20/45		174,635		180,288
2.50%, due 05/15/45 TBA		50,000		49,467
3.00%, due 05/15/45 TBA		125,000		128,533
3.50%, due 05/15/45 TBA		175,000		184,625
6.00%, due 05/15/45 TBA		370,000		420,661
Total U.S. Government & Agency Securities (Cost $16,878,158)				16,970,716

Total Investment Securities (Cost $16,878,158) – 96.1%				16,970,716
Other assets less liabilities – 3.9%				687,276
NET ASSETS – 100.0%			$	17,657,992

Percentages shown are based on Net Assets.

Abbreviation:

TBA – To Be Announced; Security is subject to delayed delivery

As of April 30, 2015, 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	$	111,251
Aggregate gross unrealized depreciation		(18,693	)
Net unrealized appreciation	$	92,558
Federal income tax cost of investments	$	16,878,158

See Accompanying Notes to the Financial Statements.


188		FLEXSHARES SEMIANNUAL REPORT

Schedule of Investments

FlexShares^® Credit-Scored US Corporate Bond Index Fund

April 30, 2015 (Unaudited)


	Principal Amount		Value
CORPORATE BONDS – 99.0%
Aerospace & Defense – 1.9%
The Boeing Co.
4.88%, due 02/15/20	$	10,000	$	11,432
Honeywell International, Inc.
5.00%, due 02/15/19		20,000		22,438
Northrop Grumman Corp.
3.25%, due 08/01/23		20,000		20,500
Raytheon Co.
3.13%, due 10/15/20		20,000		21,020
United Technologies Corp.
4.50%, due 04/15/20		20,000		22,490
				97,880
Air Freight & Logistics – 0.4%
FedEx Corp.
3.20%, due 02/01/25		20,000		20,014
Banks – 21.3%
Bank of America Corp.
2.60%, due 01/15/19		170,000		172,775
4.20%, due 08/26/24		40,000		40,488
Bank of Montreal
2.55%, due 11/06/22		20,000		19,816
BNP Paribas S.A.
5.00%, due 01/15/21		30,000		33,816
Citigroup, Inc.
1.55%, due 08/14/17		15,000		15,007
2.50%, due 09/26/18		120,000		122,398
4.00%, due 08/05/24		50,000		51,003
Fifth Third Bancorp
5.45%, due 01/15/17		50,000		53,397
HSBC Holdings PLC
4.00%, due 03/30/22		10,000		10,713
JPMorgan Chase & Co.
1.63%, due 05/15/18		90,000		90,030
2.20%, due 10/22/19		100,000		100,052
3.38%, due 05/01/23		50,000		49,962
KeyCorp
5.10%, due 03/24/21		50,000		56,612
Lloyds Bank PLC
6.38%, due 01/21/21		15,000		18,055


	Principal Amount		Value
Banks – (continued)
The PNC Financial Services Group, Inc.
3.90%, due 04/29/24	$	50,000	$	52,001
U.S. Bancorp/Minnesota
2.95%, due 07/15/22		20,000		20,095
Wells Fargo & Co.
2.13%, due 04/22/19		150,000		151,669
4.48%, due 01/16/24		20,000		21,651
				1,079,540
Beverages – 1.9%
Anheuser-Busch InBev Worldwide, Inc.
5.00%, due 04/15/20		20,000		22,753
The Coca-Cola Co.
1.15%, due 04/01/18		50,000		50,052
PepsiCo, Inc.
3.60%, due 03/01/24		20,000		21,258
				94,063
Biotechnology – 1.2%
Amgen, Inc.
2.70%, due 05/01/22		20,000		19,860
Gilead Sciences, Inc.
2.05%, due 04/01/19		40,000		40,591
				60,451
Capital Markets – 14.6%
The Bank of New York Mellon Corp.
3.65%, due 02/04/24		50,000		53,206
BlackRock, Inc.
6.25%, due 09/15/17		20,000		22,352
Credit Suisse
6.00%, due 02/15/18		115,000		127,501
Deutsche Bank AG
3.70%, due 05/30/24		50,000		50,845
The Goldman Sachs Group, Inc.
5.63%, due 01/15/17		100,000		106,712
2.63%, due 01/31/19		50,000		50,960
4.00%, due 03/03/24		80,000		83,812
Morgan Stanley
6.63%, due 04/01/18		150,000		170,036
3.75%, due 02/25/23		20,000		20,739

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			189

FlexShares^® Credit-Scored US Corporate Bond Index Fund (cont.)


	Principal Amount		Value
CORPORATE BONDS – (continued)
Capital Markets – (continued)
Nomura Holdings, Inc.
2.75%, due 03/19/19	$	50,000	$	51,010
				737,173
Chemicals – 1.8%
E.I. du Pont de Nemours & Co.
4.25%, due 04/01/21		50,000		55,172
Ecolab, Inc.
4.35%, due 12/08/21		10,000		11,004
LYB International Finance B.V.
4.00%, due 07/15/23		25,000		26,503
				92,679
Commercial Services & Supplies – 0.9%
Republic Services, Inc.
3.80%, due 05/15/18		45,000		47,752
Communications Equipment – 0.6%
Cisco Systems, Inc.
2.13%, due 03/01/19		30,000		30,550
Consumer Finance – 4.9%
American Express Co.
1.55%, due 05/22/18		60,000		60,002
Capital One Financial Corp.
3.50%, due 06/15/23		60,000		61,186
Caterpillar Financial Services Corp.
2.00%, due 03/05/20		35,000		35,148
Discover Financial Services
3.85%, due 11/21/22		50,000		51,438
John Deere Capital Corp.
3.35%, due 06/12/24		20,000		20,869
Toyota Motor Credit Corp.
4.50%, due 06/17/20		20,000		22,350
				250,993
Diversified Financial Services – 2.2%
General Electric Capital Corp.
1.63%, due 04/02/18		60,000		60,686
4.65%, due 10/17/21		20,000		22,730
Shell International Finance B.V.
2.00%, due 11/15/18		25,000		25,481
				108,897


	Principal Amount		Value
Diversified Telecommunication Services – 2.4%
AT&T, Inc.
2.30%, due 03/11/19	$	70,000	$	70,585
Verizon Communications, Inc.
3.45%, due 03/15/21		50,000		52,164
				122,749
Electric Utilities – 0.8%
Duke Energy Carolinas LLC
3.90%, due 06/15/21		10,000		10,972
Public Service Electric & Gas Co.
2.38%, due 05/15/23		30,000		29,641
				40,613
Electrical Equipment – 0.6%
Eaton Corp.
2.75%, due 11/02/22		30,000		30,099
Energy Equipment & Services – 0.3%
Ensco PLC
4.50%, due 10/01/24		15,000		14,806
Food & Staples Retailing – 2.2%
CVS Health Corp.
2.25%, due 08/12/19		50,000		50,726
Sysco Corp.
3.00%, due 10/02/21		20,000		20,601
Walgreen Co.
5.25%, due 01/15/19		20,000		22,343
Walgreens Boots Alliance, Inc.
3.30%, due 11/18/21		20,000		20,465
				114,135
Health Care Equipment & Supplies – 2.0%
Baxter International, Inc.
5.38%, due 06/01/18		40,000		44,403
Becton Dickinson and Co.
3.13%, due 11/08/21		20,000		20,519
Zimmer Holdings, Inc.
2.70%, due 04/01/20		35,000		35,367
				100,289
Health Care Providers & Services – 1.5%
Medco Health Solutions, Inc.
7.13%, due 03/15/18		30,000		34,427

See Accompanying Notes to the Financial Statements.


190		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Credit-Scored US Corporate Bond Index Fund (cont.)


	Principal Amount		Value
CORPORATE BONDS – (continued)
Health Care Providers & Services – (continued)
UnitedHealth Group, Inc.
2.88%, due 12/15/21	$	40,000	$	40,914
				75,341
Hotels, Restaurants & Leisure – 0.3%
McDonald’s Corp.
2.63%, due 01/15/22		15,000		15,132
Household Products – 0.4%
The Procter & Gamble Co.
3.10%, due 08/15/23		20,000		21,013
Insurance – 2.8%
Aflac, Inc.
3.63%, due 06/15/23		10,000		10,572
American International Group, Inc.
5.85%, due 01/16/18		80,000		89,189
Marsh & McLennan Cos., Inc.
3.50%, due 03/10/25		30,000		30,799
Prudential Financial, Inc.
5.20%, due 03/15/44(a)		10,000		10,312
				140,872
Internet & Catalog Retail – 0.3%
Amazon.com, Inc.
2.60%, due 12/05/19		15,000		15,309
IT Services – 0.3%
International Business Machines Corp.
8.38%, due 11/01/19		10,000		12,829
Media – 5.2%
21st Century Fox America, Inc.
4.50%, due 02/15/21		15,000		16,615
CBS Corp.
2.30%, due 08/15/19		15,000		15,022
Comcast Corp.
5.15%, due 03/01/20		30,000		34,311
DIRECTV Holdings LLC/DIRECTV Financing Co., Inc.
5.00%, due 03/01/21		50,000		55,395
Omnicom Group, Inc.
4.45%, due 08/15/20		10,000		10,954


	Principal Amount		Value
Media – (continued)
Time Warner Cable, Inc.
5.85%, due 05/01/17	$	20,000	$	21,452
Time Warner, Inc.
4.88%, due 03/15/20		30,000		33,595
Viacom, Inc.
2.50%, due 09/01/18		25,000		25,457
The Walt Disney Co.
1.85%, due 05/30/19		50,000		50,505
				263,306
Metals & Mining – 1.5%
BHP Billiton Finance USA Ltd.
3.25%, due 11/21/21		35,000		36,494
Rio Tinto Finance USA Ltd.
9.00%, due 05/01/19		30,000		37,759
				74,253
Multi-Utilities – 0.4%
Dominion Resources, Inc.
4.45%, due 03/15/21		20,000		22,116
Oil, Gas & Consumable Fuels – 11.3%
Anadarko Petroleum Corp.
6.38%, due 09/15/17		20,000		22,237
BP Capital Markets PLC
1.38%, due 11/06/17		15,000		15,048
4.50%, due 10/01/20		60,000		67,052
3.81%, due 02/10/24		30,000		31,442
Canadian Natural Resources Ltd.
3.45%, due 11/15/21		10,000		10,219
Chevron Corp.
2.43%, due 06/24/20		50,000		51,697
ConocoPhillips Co.
2.40%, due 12/15/22		30,000		29,566
Enterprise Products Operating LLC
3.35%, due 03/15/23		30,000		30,239
EOG Resources, Inc.
2.45%, due 04/01/20		25,000		25,483
Husky Energy, Inc.
7.25%, due 12/15/19		10,000		11,904
Kinder Morgan Energy Partners LP
2.65%, due 02/01/19		30,000		30,076
Kinder Morgan, Inc.
3.05%, due 12/01/19		50,000		50,550

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			191

FlexShares^® Credit-Scored US Corporate Bond Index Fund (cont.)


	Principal Amount		Value
CORPORATE BONDS – (continued)
Oil, Gas & Consumable Fuels – (continued)
Marathon Oil Corp.
2.80%, due 11/01/22	$	15,000	$	14,612
Occidental Petroleum Corp.
1.50%, due 02/15/18		30,000		30,032
Plains All American Pipeline LP/PAA Finance Corp.
2.60%, due 12/15/19		20,000		20,220
Suncor Energy, Inc.
3.60%, due 12/01/24		15,000		15,424
Total Capital S.A.
4.13%, due 01/28/21		30,000		33,012
TransCanada PipeLines Ltd.
1.88%, due 01/12/18		50,000		50,506
Valero Energy Corp.
9.38%, due 03/15/19		30,000		37,522
				576,841
Pharmaceuticals – 3.0%
AbbVie, Inc.
2.00%, due 11/06/18		10,000		10,037
2.90%, due 11/06/22		20,000		19,806
Actavis Funding SCS
3.45%, due 03/15/22		20,000		20,352
Merck & Co., Inc.
2.75%, due 02/10/25		25,000		24,796
Teva Pharmaceutical Finance Co. B.V.
3.65%, due 11/10/21		23,000		24,000
Wyeth LLC
6.45%, due 02/01/24		40,000		50,534
				149,525
Real Estate Investment Trusts (REITs) – 2.6%
American Tower Corp.
5.90%, due 11/01/21		10,000		11,449
Boston Properties LP
5.63%, due 11/15/20		30,000		34,863
ERP Operating LP
4.63%, due 12/15/21		20,000		22,240
HCP, Inc.
2.63%, due 02/01/20		40,000		40,232
Realty Income Corp.
4.65%, due 08/01/23		10,000		10,889


	Principal Amount		Value
Real Estate Investment Trusts (REITs) – (continued)
Simon Property Group LP
3.75%, due 02/01/24	$	15,000	$	15,802
				135,475
Road & Rail – 1.0%
Burlington Northern Santa Fe LLC
3.05%, due 03/15/22		50,000		51,356
Semiconductors & Semiconductor Equipment – 0.9%
Intel Corp.
1.35%, due 12/15/17		10,000		10,056
KLA-Tencor Corp.
4.13%, due 11/01/21		35,000		36,459
				46,515
Software – 1.6%
Oracle Corp.
5.00%, due 07/08/19		30,000		33,718
2.50%, due 10/15/22		50,000		49,426
				83,144
Specialty Retail – 0.4%
Lowe’s Cos., Inc.
3.75%, due 04/15/21		20,000		21,768
Technology Hardware, Storage & Peripherals – 2.8%
Apple, Inc.
2.85%, due 05/06/21		50,000		51,796
2.40%, due 05/03/23		10,000		9,750
EMC Corp.
2.65%, due 06/01/20		25,000		25,637
Hewlett-Packard Co.
2.75%, due 01/14/19		10,000		10,263
4.05%, due 09/15/22		25,000		26,222
Seagate HDD Cayman
3.75%, due 11/15/18		20,000		20,943
				144,611
Tobacco – 1.8%
Altria Group, Inc.
2.85%, due 08/09/22		70,000		69,767
Philip Morris International, Inc.
3.60%, due 11/15/23		20,000		21,283
				91,050

See Accompanying Notes to the Financial Statements.


192		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Credit-Scored US Corporate Bond Index Fund (cont.)


	Principal Amount		Value
CORPORATE BONDS – (continued)
Trading Companies & Distributors – 0.5%
Air Lease Corp.
4.25%, due 09/15/24	$	25,000	$	25,750
Wireless Telecommunication Services – 0.4%
Vodafone Group PLC
1.25%, due 09/26/17		20,000		19,938
Total Corporate Bonds (Cost $4,972,460)				5,028,827
Total Investment Securities (Cost $4,972,460) – 99.0%				5,028,827
Other assets less liabilities – 1.0%				50,245
NET ASSETS – 100.0%			$	5,079,072

^(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 April 30, 2015.

Percentages shown are based on Net Assets.

Abbreviation:

REIT – Real Estate Investment Trust

As of April 30, 2015, 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	$	59,542
Aggregate gross unrealized depreciation		(3,318	)
Net unrealized appreciation	$	56,224
Federal income tax cost of investments	$	4,972,603

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			193

Schedule of Investments

FlexShares^® Ready Access Variable Income Fund

April 30, 2015 (Unaudited)


	Principal Amount		Value
ASSET-BACKED SECURITY – 0.1%
American Express Credit Account Master Trust
0.59%, due 05/15/18	$	100,000	$	100,069
Total Asset-Backed Security (Cost $99,995)				100,069
CORPORATE BONDS – 86.7%
Aerospace & Defense – 1.5%
Honeywell International, Inc.
0.31%, due 11/17/15(b)		1,500,000		1,500,408
Banks – 6.6%
Australia & New Zealand Banking Group Ltd.
1.25%, due 01/10/17		450,000		451,689
The Bank of Tokyo-Mitsubishi UFJ Ltd.
0.87%, due 09/09/16(a) (b)		250,000		250,645
Banque Federative du Credit Mutuel S.A.
1.13%, due 01/20/17(a) (b)		1,000,000		1,007,300
Barclays Bank PLC
0.84%, due 02/17/17(b)		1,000,000		1,003,083
Cooperatieve Centrale Raiffeisen-Boerenleenbank BA
2.25%, due 07/31/15		1,250,000		1,256,017
0.75%, due 03/18/16(b)		750,000		752,742
Sumitomo Mitsui Banking Corp.
0.70%, due 01/10/17(b)		2,000,000		1,999,028
				6,720,504
Communications Equipment – 0.8%
Cisco Systems, Inc.
0.76%, due 03/01/19(b)		823,000		831,865
Consumer Finance – 9.7%
American Express Credit Corp.
0.75%, due 08/15/19(b)		1,090,000		1,087,925
American Honda Finance Corp.
0.45%, due 07/14/17(b)		1,000,000		999,362
1.20%, due 07/14/17		89,000		89,148


	Principal Amount		Value
Consumer Finance – (continued)
Capital One N.A./Virginia
1.65%, due 02/05/18	$	1,000,000	$	995,751
Caterpillar Financial Services Corp.
0.70%, due 11/06/15		996,000		997,654
Ford Motor Credit Co. LLC
1.10%, due 03/12/19(b)		1,000,000		997,891
John Deere Capital Corp.
1.05%, due 12/15/16		858,000		861,934
1.95%, due 12/13/18		13,000		13,246
Nissan Motor Acceptance Corp.
0.81%, due 03/03/17(a) (b)		503,000		504,593
PACCAR Financial Corp.
0.70%, due 11/16/15		395,000		395,678
Synchrony Financial
1.88%, due 08/15/17		900,000		901,769
Toyota Motor Credit Corp.
0.55%, due 05/17/16(b)		78,000		78,205
0.46%, due 05/16/17(b)		928,000		927,514
1.45%, due 01/12/18		1,000,000		1,006,882
				9,857,552
Data Processing & Outsourced Services – 0.2%
MasterCard, Inc.
2.00%, due 04/01/19		191,000		194,334
Diversified Banks – 18.1%
Bank of America Corp.
0.87%, due 08/25/17(b)		1,000,000		1,003,054
Bank of Montreal
0.52%, due 09/24/15(b)		750,000		750,677
0.80%, due 11/06/15		1,250,000		1,252,791
The Bank of Nova Scotia
0.67%, due 03/15/16(b)		309,000		309,944
2.90%, due 03/29/16		1,000,000		1,022,059
BNP Paribas S.A.
0.75%, due 03/17/17(b)		743,000		744,404
Canadian Imperial Bank of Commerce
2.35%, due 12/11/15		2,000,000		2,023,118

See Accompanying Notes to the Financial Statements.


194		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Ready Access Variable Income Fund (cont.)


	Principal Amount		Value
CORPORATE BONDS – (continued)
Diversified Banks – (continued)
Commonwealth Bank of Australia
0.67%, due 03/12/18(a) (b)	$	1,000,000	$	1,000,405
Lloyds Bank PLC
0.79%, due 03/16/18(b)		1,000,000		1,001,831
National Bank of Canada
1.50%, due 06/26/15		1,475,000		1,477,714
Royal Bank of Canada
0.80%, due 10/30/15		1,057,000		1,059,423
0.78%, due 03/06/20(b)		1,000,000		1,002,119
Svenska Handelsbanken AB
0.73%, due 09/23/16(b)		1,000,000		1,004,436
The Toronto-Dominion Bank
0.72%, due 09/09/16(b)		728,000		731,157
U.S. Bancorp/Minnesota
0.68%, due 04/25/19(b)		843,000		842,086
U.S. Bank N.A./Ohio
1.38%, due 09/11/17		1,000,000		1,005,399
Wells Fargo & Co.
2.15%, due 01/30/20		1,000,000		1,000,539
Wells Fargo Bank N.A.
0.56%, due 07/20/15(b)		500,000		500,252
Westpac Banking Corp.
0.69%, due 11/25/16(b)		753,000		755,720
				18,487,128
Diversified Capital Markets – 4.2%
Credit Suisse
1.75%, due 01/29/18		1,000,000		1,002,687
Deutsche Bank AG
3.25%, due 01/11/16		1,281,000		1,303,366
JPMorgan Chase & Co.
3.40%, due 06/24/15		1,870,000		1,878,062
1.18%, due 01/25/18(b)		116,000		117,207
				4,301,322
Diversified Metals & Mining – 1.3%
Freeport-McMoRan, Inc.
2.30%, due 11/14/17		570,000		572,885


	Principal Amount		Value
Diversified Metals & Mining – (continued)
Glencore Funding LLC
1.42%, due 05/27/16(a) (b)	$	743,000	$	745,535
				1,318,420
Drug Retail – 0.1%
Walgreens Boots Alliance, Inc.
1.75%, due 11/17/17		81,000		81,717
Electric Utilities – 2.3%
Duke Energy Indiana, Inc.
0.63%, due 07/11/16(b)		928,000		929,135
Electricite de France S.A.
0.74%, due 01/20/17(a) (b)		399,000		399,776
Georgia Power Co.
0.63%, due 11/15/15		14,000		14,011
The Southern Co.
1.30%, due 08/15/17		1,000,000		1,001,944
				2,344,866
Fertilizers & Agricultural Chemicals – 0.8%
Monsanto Co.
1.15%, due 06/30/17		825,000		827,749
Food Retail – 0.9%
The Kroger Co.
0.80%, due 10/17/16(b)		938,000		940,591
Health Care Distributors – 0.3%
McKesson Corp.
0.95%, due 12/04/15		297,000		297,655
Home Improvement Retail – 0.3%
The Home Depot, Inc.
2.00%, due 06/15/19		303,000		308,093
Household Appliances – 1.0%
Whirlpool Corp.
1.65%, due 11/01/17		1,000,000		1,006,020
Household Products – 1.3%
Kimberly-Clark Corp.
1.90%, due 05/22/19		334,000		336,893

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			195

FlexShares^® Ready Access Variable Income Fund (cont.)


	Principal Amount		Value
CORPORATE BONDS – (continued)
Household Products – (continued)
The Procter & Gamble Co.
0.55%, due 11/01/19(b)	$	1,000,000	$	1,002,885
				1,339,778
Hypermarkets & Super Centers – 0.6%
Costco Wholesale Corp.
0.65%, due 12/07/15		240,000		240,503
Wal-Mart Stores, Inc.
1.50%, due 10/25/15		115,000		115,667
1.00%, due 04/21/17		209,000		209,962
				566,132
Integrated Oil & Gas – 4.0%
Chevron Corp.
1.96%, due 03/03/20		1,000,000		1,005,121
Exxon Mobil Corp.
0.31%, due 03/15/17(b)		1,000,000		1,000,404
Total Capital S.A.
3.00%, due 06/24/15		2,100,000		2,107,707
				4,113,232
Integrated Telecommunication Services – 1.2%
AT&T, Inc.
0.64%, due 02/12/16(b)		268,000		268,021
Verizon Communications, Inc.
1.80%, due 09/15/16(b)		958,000		972,930
				1,240,951
Internet Retail – 1.1%
Amazon.com, Inc.
0.65%, due 11/27/15		1,153,000		1,153,566
Investment Banking & Brokerage – 2.2%
The Goldman Sachs Group, Inc.
1.60%, due 11/23/15		965,000		969,970
Morgan Stanley
1.51%, due 02/25/16(b)		847,000		852,818
2.50%, due 01/24/19		377,000		382,732
				2,205,520


	Principal Amount		Value
Managed Health Care – 0.9%
UnitedHealth Group, Inc.
0.85%, due 10/15/15	$	878,000	$	879,752
Movies & Entertainment – 1.4%
The Walt Disney Co.
1.10%, due 12/01/17		464,000		465,257
0.57%, due 05/30/19(b)		928,000		931,538
				1,396,795
Oil & Gas Exploration & Production – 0.7%
Canadian Natural Resources Ltd.
1.75%, due 01/15/18		176,000		175,359
Marathon Oil Corp.
0.90%, due 11/01/15		573,000		574,533
				749,892
Oil & Gas Refining & Marketing – 1.0%
BP Capital Markets PLC
0.70%, due 11/06/15		209,000		209,211
0.90%, due 09/26/18(b)		835,000		838,457
				1,047,668
Oil & Gas Storage & Transportation – 0.6%
TransCanada PipeLines Ltd.
0.95%, due 06/30/16(b)		581,000		582,826
Oil, Gas & Consumable Fuels – 1.2%
Petrobras Global Finance B.V.
1.88%, due 05/20/16(b)		250,000		242,500
Sinopec Group Overseas Development 2014 Ltd.
1.05%, due 04/10/17(a) (b)		1,000,000		999,054
				1,241,554
Other Diversified Financial Services – 2.7%
Citigroup, Inc.
0.80%, due 03/10/17(b)		928,000		927,711
General Electric Capital Corp.
0.93%, due 07/12/16(b)		343,000		345,532
0.79%, due 01/14/19(b)		928,000		932,498
2.20%, due 01/09/20		350,000		354,942

See Accompanying Notes to the Financial Statements.


196		FLEXSHARES SEMIANNUAL REPORT

FlexShares^® Ready Access Variable Income Fund (cont.)


	Principal Amount		Value
CORPORATE BONDS – (continued)
Other Diversified Financial Services – (continued)
ING Bank N.V.
1.21%, due 03/07/16(a) (b)	$	200,000	$	201,079
				2,761,762
Packaged Foods & Meats – 2.0%
General Mills, Inc.
0.58%, due 01/29/16(b)		1,000,000		1,000,110
Kellogg Co.
1.13%, due 05/15/15		1,000,000		1,000,046
				2,000,156
Pharmaceuticals – 4.7%
Eli Lilly & Co.
1.25%, due 03/01/18		2,000,000		2,006,156
GlaxoSmithKline Capital, Inc.
0.70%, due 03/18/16		2,000,000		2,004,350
Johnson & Johnson
1.13%, due 11/21/17		785,000		788,780
				4,799,286
Property & Casualty Insurance – 2.0%
Berkshire Hathaway Finance Corp.
0.42%, due 01/10/17(b)		1,000,000		1,001,187
0.58%, due 01/12/18(b)		1,000,000		1,003,281
				2,004,468
Railroads – 1.0%
Canadian National Railway Co.
0.43%, due 11/14/17(b)		1,000,000		999,341
Regional Banks – 1.5%
Branch Banking & Trust Co.
0.69%, due 12/01/16(b)		1,000,000		1,001,614
Manufacturers & Traders Trust Co.
1.40%, due 07/25/17		500,000		501,018
				1,502,632
Restaurants – 1.0%
McDonald’s Corp.
0.75%, due 05/29/15		100,000		100,032


	Principal Amount		Value
Restaurants – (continued)
Starbucks Corp.
0.88%, due 12/05/16	$	928,000	$	929,996
				1,030,028
Semiconductors – 0.9%
Texas Instruments, Inc.
0.88%, due 03/12/17		928,000		930,162
Special Purpose Banks – 2.7%
The Korea Development Bank
0.90%, due 01/22/17(b)		1,767,000		1,766,875
Nederlandse Waterschapsbank N.V.
0.49%, due 02/14/18(a) (b)		1,000,000		1,005,374
				2,772,249
Specialized Finance – 1.1%
Shell International Finance B.V.
0.47%, due 11/15/16(b)		1,064,000		1,066,339
Systems Software – 0.8%
Microsoft Corp.
1.85%, due 02/12/20		850,000		857,338
Technology Hardware, Storage & Peripherals – 1.0%
Apple, Inc.
0.33%, due 05/03/16(b)		478,000		478,451
0.58%, due 05/06/19(b)		557,000		559,981
				1,038,432
Thrifts & Mortgage Finance – 0.1%
Abbey National Treasury Services PLC
0.78%, due 03/13/17(b)		78,000		78,089
Tobacco – 0.0%^†
Reynolds American, Inc.
1.05%, due 10/30/15		51,000		51,008
Wireless Telecommunication Services – 0.9%
Vodafone Group PLC
0.64%, due 02/19/16(b)		963,000		963,840
Total Corporate Bonds (Cost $88,192,455)				88,391,020

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			197

FlexShares^® Ready Access Variable Income Fund (cont.)


	Principal Amount		Value
MUNICIPAL BONDS – 2.8%
DeKalb County Housing Authority, Multi-Family Housing Authority, Oak Grove Elementary School Project, Revenue Bonds
0.50%, due 05/01/16	$	928,000	$	927,954
Illinois Sports Facilities Authority, Refunding
3.00%, due 06/15/15		1,000,000		1,002,930
New Jersey Economic Development Authority, Revenue Bonds, Refunding, School Facilities
3.64%, due 12/15/15		930,000		946,182
Total Municipal Bonds (Cost $2,878,824)				2,877,066
Commercial Paper – 2.9%
Ecolab, Inc.
0.29%, due 07/07/15		1,000,000		999,460
Mondelez International, Inc.
0.21%, due 05/12/15		1,000,000		999,930
Wyndham Worldwide Corp.
0.41%, due 05/07/15		1,000,000		999,920
Total Commercial Paper (Cost $2,998,499)				2,999,310
Repurchase Agreements (c) – 5.2%
RBS Securities, Inc., dated 04/30/15, repurchase price $3,300,028, 0.30%, 05/01/15		3,300,000		3,300,000
SG America Securities LLC, dated 04/30/15, repurchase price $2,000,022, 0.40%, 05/01/15		2,000,000		2,000,000
Total Repurchase Agreements (Cost $5,300,000)				5,300,000
Total Investment Securities (Cost $99,469,773) – 97.7%				99,667,465
Other assets less liabilities – 2.3%				2,316,171
NET ASSETS – 100.0%			$	101,983,636

^†	Amount represents less than 0.05%.

^(a)

^(b)

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 April 30, 2015.

^(c)

The nature and terms of the collateral received for the repurchase agreements are as follows:


Name	Fair Market Value		Coupon Rate			Maturity Date
U.S. Government Agency Mortgage Security	$	3,127,308		1.38	%		04/30/20
Various Corporate Bonds	$	2,406,506		2.25% – 9.00%			04/15/16 – 05/24/41

Percentages shown are based on Net Assets.

As of April 30, 2015, 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	$	220,952
Aggregate gross unrealized depreciation		(23,591	)
Net unrealized appreciation	$	197,361
Federal income tax cost of investments	$	99,470,104

See Accompanying Notes to the Financial Statements.


198		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, 2015:


Australia	2.1	%
Canada	11.2
France	4.2
Germany	1.3
Japan	2.2
Netherlands	4.4
South Korea	1.7
Sweden	1.0
Switzerland	1.0
United Kingdom	5.0
United States	63.6
Other¹	2.3
	100.0	%

¹	Includes any non-fixed-income securities and net other assets (liabilities).

See Accompanying Notes to the Financial Statements.


FLEXSHARES SEMIANNUAL REPORT			199

Notes to the Financial Statements April 30, 2015 (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 seventeen operational exchange-traded funds as of April 30, 2015 (each a “Fund” and collectively, the “Funds”). The FlexShares^® Morningstar Global Upstream Natural Resources Index Fund, FlexShares^® STOXX^® Global Broad Infrastructure Index Fund, FlexShares^® Global Quality Real Estate 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 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^® 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 Credit-Scored US Corporate Bond Index Fund commenced operations on November 12, 2014.

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 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, FlexShares International Quality Dividend Dynamic Index Fund, and the FlexShares Credit-Scored US Corporate Bond Index Fund seek to track Underlying Indexes developed by Northern Trust Investments, Inc. (“NTI” or “Investment Adviser”), a subsidiary of Northern Trust Corporation. The FlexShares Disciplined Duration MBS Index Fund seeks to track an Underlying Index sponsored by Merrill Lynch, Pierce, Fenner & Smith Inc.

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 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 (“GAAP”). The preparation of financial statements in conformity with 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.


200		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)

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 “Board”). 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. Such circumstances include, for example, 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 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 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 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 the mean between the bid and asked quotes based upon quotes furnished by primary 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, however, may be valued on the basis of evaluated prices provided by independent pricing services when such prices are believed to reflect the fair market value 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, which according to NTI approximates fair value.

Foreign securities are generally priced at the closing price or last sales price reported on the foreign exchange on which


FLEXSHARES SEMIANNUAL REPORT			201

Notes to the Financial Statements (cont.)

they are principally traded. 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 determined 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 an Index Provider to an Index Fund may adversely affect the Index Fund’s ability to track its Underlying Index.

Exchange-traded financial futures and options are valued at the settlement price as established by the exchange on which they are traded. Over-the-counter options and swaps are valued at broker-provided bid prices. 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 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, as well as independent control personnel from Northern Trust’s Legal and NTI’s Compliance and Risk Management groups. 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’s oversight.

The Northern Trust Asset Management PVC is responsible for making the determination of the fair value of a security. In making its determination, the Northern Trust Asset Management PVC considers factors that it deems appropriate to the determination of the fair value of the security. Such factors include, but are not limited to, the type of

security; the current financial position of the issuer; the cost of the investment; information as to any transactions or offers with respect to a security; market value of a similar freely-traded security; and news events. NTI monitors markets and the issuer’s circumstances that affect a security’s valuation to determine the continued appropriateness of a security’s fair valuation. The Northern Trust Asset Management PVC will review if the markets and issuer’s circumstances relevant to the valuation of a fair valued security change materially.

Various inputs are used in determining the value of each Fund’s investments. These inputs are summarized in three levels listed below:

•

Level 1—Quoted prices in active markets for identical assets on the measurement date.

•

Level 2—Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).

•

Level 3—Significant unobservable inputs (including the Funds’ own assumptions in determining the fair value of investments).

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For example, short-term debt securities may be valued at amortized cost. 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, 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.


202		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)

The following is a summary of the valuations as of April 30, 2015 for each Fund based upon the three levels defined above. During the period ended April 30, 2015, there were two 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*	$	772,291,583		$	—		$	—	$	772,291,583
Warrants		—			—			—		—
Total Investments	$	772,291,583		$	—		$	—	$	772,291,583

Other Financial Instruments
Assets
Futures Contracts	$	52,055		$	—		$	—	$	52,055
Total Other Financial Instruments	$	52,055		$	—		$	—	$	52,055

	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	$	5,448,894		$	10,560		$	—	$	5,459,454
Banks		63,221,268			62,231			545		63,284,044
Insurance		27,223,758			77,206			—		27,300,964
Media		12,060,079			146,923			—		12,207,002
Other*		448,704,238			—			—		448,704,238
Rights		44,345			55,811			—		100,156
Total Investments	$	556,702,582		$	352,731		$	545	$	557,055,858

Other Financial Instruments
Assets
Futures Contracts	$	102,113		$	—		$	—	$	102,113
Forward Foreign Currency Contracts		—			69,528			—		69,528
Liabilities
Futures Contracts		(21,185	)		—			—		(21,185	)
Forward Foreign Currency Contracts		—			(33,632	)		—		(33,632	)
Total Other Financial Instruments	$	80,928		$	35,896		$	—	$	116,824


FLEXSHARES SEMIANNUAL REPORT			203

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 10/31/2014	$	609
Total gain or loss (realized/unrealized included in earnings)		(64	)
Purchases		—
Sales		—
Transfers into Level 3		—
Transfers out of Level 3		—
Balance as of 4/30/2015	$	545
The amount of change in net unrealized appreciation (depreciation) on investment in Level 3 securities still held at 4/30/2015.	$	(64	)


Common Stock	Fair Value at 4/30/2015	Valuation Techniques		Unobservable Inputs	Sensitivity¹
Banco Espirito Santo S.A.	$545		Consensus Pricing	Distressed/Defaulted Market Discount, Estimated Recovery Value	1


	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
Construction & Engineering	$	4,405,659		$	34,168		$	—	$	4,439,827
Construction Materials		3,541,357			439,017			—		3,980,374
Diversified Consumer Services		378,480			91,752			—		470,232
Diversified Financial Services		4,390,634			1,604			—		4,392,238
Electronic Equipment, Instruments & Components		7,874,027			3,824			—		7,877,851
Forest Products & Paper		—			410			—		410
Household Durables		2,631,711			—			61		2,631,772
Household Products		1,016,131			38,601			—		1,054,732
IT Services		3,851,383			108,590			—		3,959,973
Metals & Mining		9,056,054			102,760			—		9,158,814
Paper & Forest Products		1,010,020			74,402			—		1,084,422
Personal Products		1,021,181			678,276			—		1,699,457
Pharmaceuticals		4,942,988			80,222			—		5,023,210
Real Estate Management & Development		9,129,972			330,673			—		9,460,645
Other*		181,526,726			—			—		181,526,726
Corporate Bond*		—			9,885			—		9,885
Rights		1,766			—			—		1,766
Warrants		465			—			—		465
Total Investments	$	234,778,554		$	1,994,184		$	61	$	236,772,799

Other Financial Instruments
Assets
Futures Contracts	$	64,230		$	—		$	—	$	64,230
Forward Foreign Currency Contracts		—			68,580			—		68,580
Liabilities
Futures Contracts		(6,364	)		—			—		(6,364	)
Forward Foreign Currency Contracts		—			(47,215	)		—		(47,215	)
Total Other Financial Instruments	$	57,866		$	21,365		$	—	$	79,231


204		FLEXSHARES SEMIANNUAL REPORT

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 10/31/2014	$	69
Total gain or loss (realized/unrealized included in earnings)		(8	)
Purchases		—
Sales		—
Transfers into Level 3		—
Transfers out of Level 3		—
Balance as of 4/30/2015	$	61
The amount of change in net unrealized appreciation (depreciation) on investment in Level 3 securities still held at 4/30/2015.	$	(8	)


Common Stock	Fair Value at 4/30/2015	Valuation Techniques		Unobservable Inputs	Sensitivity¹
Corp. GEO SAB de CV	$61		Consensus Pricing	Distressed/Defaulted Market Discount, Estimated Recovery Value	1


	Level 1 — Quoted Prices*			Level 2 — Other Significant Observable Inputs*			Level 3 — Significant Unobservable Inputs		Total
FlexShares Morningstar Global Upstream Natural Resources Index
Investments
Common Stocks*	$	2,584,956,179		$	—		$	—	$	2,584,956,179
Total Investments	$	2,584,956,179		$	—		$	—	$	2,584,956,179

Other Financial Instruments
Assets
Futures Contracts	$	1,098,653		$	—		$	—	$	1,098,653
Forward Foreign Currency Contracts		—			555,330			—		555,330
Liabilities
Futures Contracts		(33,667	)		—			—		(33,667	)
Forward Foreign Currency Contracts		—			(527,245	)		—		(527,245	)
Total Other Financial Instruments	$	1,064,986		$	28,085		$	—	$	1,093,071


FLEXSHARES SEMIANNUAL REPORT			205

Notes to the Financial Statements (cont.)


	Level 1 — Quoted Prices			Level 2 — Other Significant Observable Inputs			Level 3 — Significant Unobservable Inputs		Total
FlexShares STOXX^® Global Broad Infrastructure Index
Investments
Common Stocks*	$	326,096,741		$	—		$	—	$	326,096,741
Total Investments	$	326,096,741		$	—		$	—	$	326,096,741

Other Financial Instruments
Assets
Futures Contracts	$	39,233		$	—		$	—	$	39,233
Forward Foreign Currency Contracts		—			102,988			—		102,988
Liabilities
Futures Contracts		(4,785	)		—			—		(4,785	)
Forward Foreign Currency Contracts		—			(51,480	)		—		(51,480	)
Total Other Financial Instruments	$	34,448		$	51,508		$	—	$	85,956

	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*	$	90,602,295		$	—		$	—	$	90,602,295
Total Investments	$	90,602,295		$	—		$	—	$	90,602,295

Other Financial Instruments
Assets
Futures Contracts	$	21,173		$	—		$	—	$	21,173
Forward Foreign Currency Contracts		—			26,915			—		26,915
Liabilities
Futures Contracts		(3,579	)		—			—		(3,579	)
Forward Foreign Currency Contracts		—			(25,118	)		—		(25,118	)
Total Other Financial Instruments	$	17,594		$	1,797		$	—	$	19,391


206		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 Quality Dividend Index
Investments
Common Stocks*	$	652,677,634	$	—	$	—	$	652,677,634
Total Investments	$	652,677,634	$	—	$	—	$	652,677,634

Other Financial Instruments
Assets
Futures Contracts	$	61,962	$	—	$	—	$	61,962
Total Other Financial Instruments	$	61,962	$	—	$	—	$	61,962

	Level 1 — Quoted Prices*		Level 2 — Other Significant Observable Inputs*		Level 3 — Significant Unobservable Inputs		Total
FlexShares Quality Dividend Defensive Index
Investments
Common Stocks
Food & Staples Retailing	$	1,573,674	$	8,988	$	—	$	1,582,662
Other*		179,736,493		—		—		179,736,493
Total Investments	$	181,310,167	$	8,988	$	—	$	181,319,155

Other Financial Instruments
Assets
Futures Contracts	$	19,390	$	—	$	—	$	19,390
Total Other Financial Instruments	$	19,390	$	—	$	—	$	19,390

	Level 1 — Quoted Prices*		Level 2 — Other Significant Observable Inputs*		Level 3 — Significant Unobservable Inputs		Total
FlexShares Quality Dividend Dynamic Index
Investments
Common Stocks*	$	103,147,457	$	—	$	—	$	103,147,457
Total Investments	$	103,147,457	$	—	$	—	$	103,147,457

Other Financial Instruments
Assets
Futures Contracts	$	16,799	$	—	$	—	$	16,799
Total Other Financial Instruments	$	16,799	$	—	$	—	$	16,799


FLEXSHARES SEMIANNUAL REPORT			207

Notes to the Financial Statements (cont.)


	Level 1 — Quoted Prices*			Level 2 — Other Significant Observable Inputs*			Level 3 — Significant Unobservable Inputs		Total
FlexShares International Quality Dividend Index
Investments
Common Stocks
Banks	$	48,744,969		$	4,353		$	—	$	48,749,322
Other*		325,612,509			—			—		325,612,509
Total Investments	$	374,357,478		$	4,353		$	—	$	374,361,831

Other Financial Instruments
Assets
Futures Contracts	$	152,703		$	—		$	—	$	152,703
Forward Foreign Currency Contracts		—			7,093			—		7,093
Liabilities
Futures Contracts		(20,885	)		—			—		(20,885	)
Forward Currency Contracts		—			(10,580	)		—		(10,580	)
Total Other Financial Instruments	$	131,818		$	(3,487	)	$	—	$	128,331

	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
Banks	$	14,547,938		$	16,852		$	—	$	14,564,790
Other*		89,175,729			—			—		89,175,729
Total Investments	$	103,723,667		$	16,852		$	—	$	103,740,519

Other Financial Instruments
Assets
Futures Contracts	$	368		$	—		$	—	$	368
Forward Foreign Currency Contracts		—			207,040			—		207,040
Liabilities
Futures Contracts		(15,899	)		—			—		(15,899	)
Forward Foreign Currency Contracts		—			(127,039	)		—		(127,039	)
Total Other Financial Instruments	$	(15,531	)	$	80,001		$	—	$	64,470


208		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 International Quality Dividend Dynamic Index
Investments
Common Stocks
Banks	$	9,544,556		$	21,439		$	—	$	9,565,995
Other*		63,034,724			—			—		63,034,724
Total Investments	$	72,579,280		$	21,439		$	—	$	72,600,719

Other Financial Instruments
Assets
Futures Contracts	$	128		$	—		$	—	$	128
Forward Foreign Currency Contracts		—			11,497			—		11,497
Liabilities
Futures Contracts		(5,170	)		—			—		(5,170	)
Forward Foreign Currency Contracts		—			(20,237	)		—		(20,237	)
Total Other Financial Instruments	$	(5,042	)	$	(8,740	)	$	—	$	(13,782	)

	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	$	—		$	2,140,801,106		$	—	$	2,140,801,106
Total Investments	$	—		$	2,140,801,106		$	—	$	2,140,801,106

	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	$	—		$	434,122,039		$	—	$	434,122,039
Total Investments	$	—		$	434,122,039		$	—	$	434,122,039

	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	$	—		$	16,970,716		$	—	$	16,970,716
Total Investments	$	—		$	16,970,716		$	—	$	16,970,716


FLEXSHARES SEMIANNUAL REPORT			209

Notes to the Financial Statements (cont.)


	Level 1 — Quoted Prices*		Level 2 — Other Significant Observable Inputs*		Level 3 — Significant Unobservable Inputs		Total
FlexShares Credit-Scored U.S. Corporate Bond Index
Investments
Corporate Bonds*	$	—	$	5,028,827	$	—	$	5,028,827
Total Investments	$	—	$	5,028,827	$	—	$	5,028,827

	Level 1 — Quoted Prices*		Level 2 — Other Significant Observable Inputs*		Level 3 — Significant Unobservable Inputs		Total
FlexShares Ready Access Variable Income
Investments
Asset-Backed Security	$	—	$	100,069	$	—	$	100,069
Corporate Bonds*		—		88,391,020		—		88,391,020
Municipal Bonds		—		2,877,066		—		2,877,066
Commercial Paper		—		2,999,310		—		2,999,310
Repurchase Agreements		—		5,300,000		—		5,300,000
Total Investments	$	—	$	99,667,465	$	—	$	99,667,465

*	See Schedules of Investments for segregation by industry type.

During the period ended April 30, 2015, the FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund changed classification of securities with an aggregated market value of $62,832 or 0.01% of the Fund’s net assets from Level 2 to Level 1 due to securities being valued at unadjusted quoted market prices.

^b	During the period ended April 30, 2015, the FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund changed classification of security with a market value of $77,206 or 0.01% of the Fund’s net assets from Level 1 to Level 2 due to security being valued with other observable inputs.

During the period ended April 30, 2015, the FlexShares Morningstar Emerging Markets Factor Tilt Index Fund changed classification of securities with an aggregated market value of $1,893,534 or 0.79% of the Fund’s net assets from Level 2 to Level 1 due to securities being valued at unadjusted quoted market prices.

During the period ended April 30, 2015, the FlexShares Morningstar Emerging Markets Factor Tilt Index Fund changed classification of securities with an aggregated market value of $1,802,297 or 0.75% of the Fund’s net assets from Level 1 to Level 2 due to securities being valued with other observable inputs.

The unobservable inputs are reviewed and compared to publicly available information for reasonableness. Values are reviewed based on available restructuring and recovery information. Values are compared to historical averages and general sector trends are taken into account. In general, an increase (decrease) in recovery or reduction (increase) in dilution would, in isolation, result in a significantly higher (lower) fair value measurement.

The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:

Foreign Securities

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 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


210		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)

(“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 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 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

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


FLEXSHARES SEMIANNUAL REPORT			211

Notes to the Financial Statements (cont.)

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.

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.


212		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)

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, 2015, only the FlexShares Ready Access Variable Income Fund had entered into repurchase agreements, as reflected in its Schedule of Investments.

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, 2015, 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.

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


FLEXSHARES SEMIANNUAL REPORT			213

Notes to the Financial Statements (cont.)

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 Statement of Operations.

Forward Foreign Currency Exchange Contracts

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 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 or for purposes of hedging against declines in the value of an Index Fund’s assets that are denominated in a foreign currency. 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 (e.g., for potential income or capital gain). 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 financial statements.

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 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, 2015, 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 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

All of the Funds in the Trust have adopted Financial Accounting Standards Update (“ASU”) No. 2011-11 “Disclosures about Offsetting Assets and Liabilities” which was subsequently clarified in ASU 2013-01 “Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” ASU 2013-01 limits the scope of the new statement of assets and liabilities offsetting disclosures to derivatives, repurchase


214		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)

agreements and securities lending transactions to the extent that they are (1) offset in the financial statements or (2) subject to an enforceable master netting arrangement or similar agreement. Both ASU 2011-11 and ASU 2013-01 are effective prospectively for interim and annual periods beginning on or after January 1, 2013.

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 Statement of Assets and Liabilities across transactions between the fund and the applicable counterparty. 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 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 Statement 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 Fund	Foreign Currency Contracts — Bank of New York	$	7,958	$	—		$	—	$	7,958
	Foreign Currency Contracts — Citibank N.A.		11,994		(11,994	)		—		—
	Foreign Currency Contracts — Morgan Stanley		35,729		(12,404	)		—		23,325
	Foreign Currency Contracts — UBS AG		13,847		—			—		13,847
	Total	$	69,528	$	(24,398	)	$	—	$	45,130
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund	Foreign Currency Contracts — Citibank N.A.	$	—	$	—		$	—	$	—
	Foreign Currency Contracts — Goldman Sachs		97		—			—		97
	Foreign Currency Contracts — Morgan Stanley		68,237		(47,108	)		—		21,129
	Foreign Currency Contracts — UBS AG		246		—			—		246
	Total	$	68,580	$	(47,108	)	$	—	$	21,472
FlexShares Morningstar Global Upstream Natural Resources Index Fund	Foreign Currency Contracts — Bank of Montreal	$	—	$	—		$	—	$	—
	Foreign Currency Contracts — Bank of New York		127,539		—			—		127,539
	Foreign Currency Contracts — Citibank N.A.		793		—			—		793
	Foreign Currency Contracts — Goldman Sachs		—		—			—		—
	Foreign Currency Contracts — Morgan Stanley		426,998		(164,267	)		—		262,731
	Foreign Currency Contracts — UBS AG		—		—			—		—
	Total	$	555,330	$	(164,267	)	$	—	$	391,063


FLEXSHARES SEMIANNUAL REPORT			215

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 STOXX^® Global Infrastructure Index Fund	Foreign Currency Contracts — Citibank N.A.	$	—	$	—		$	—		$	—
	Foreign Currency Contracts — Goldman Sachs		—		—			—			—
	Foreign Currency Contracts — Morgan Stanley		102,988		(34,587	)		—			68,401
	Foreign Currency Contracts — UBS AG		—		—			—			—
	Total	$	102,988	$	(34,587	)	$	—		$	68,401
FlexShares Global Quality Real Estate Index Fund	Foreign Currency Contracts — Bank of Montreal	$	6,771	$	—		$	—		$	6,771
	Foreign Currency Contracts — Citibank N.A.		1,030		(132	)		—			898
	Foreign Currency Contracts — Morgan Stanley		16,375		(16,375	)		—			—
	Foreign Currency Contracts — UBS AG		2,739		—			—			2,739
	Total	$	26,915	$	(16,507	)	$	—		$	10,408
FlexShares International Quality Dividend Index Fund	Foreign Currency Contracts — Citibank N.A.	$	—	$	—		$	—		$	—
	Foreign Currency Contracts — Morgan Stanley		7,093		—			—			7,093
	Total	$	7,093	$	—		$	—		$	7,093
FlexShares International Quality Dividend Defensive Index Fund	Foreign Currency Contracts — Bank of Montreal	$	93,071	$	(24,150	)	$	—		$	68,921
	Foreign Currency Contracts — Bank of New York		—		—			—			—
	Foreign Currency Contracts — Citibank N.A.		6,085		(6,085	)		—			—
	Foreign Currency Contracts — Goldman Sachs		1,148		(1,148	)		—			—
	Foreign Currency Contracts — Morgan Stanley		60,051		(60,051	)		—			—
	Foreign Currency Contracts — Societe Generale		33,662		(2,564	)		—			31,098
	Foreign Currency Contracts — UBS AG		13,023		(6,104	)		—			6,919
	Total	$	207,040	$	(100,102	)	$	—		$	106,938
FlexShares International Quality Dividend Dynamic Index Fund	Foreign Currency Contracts — Bank of Montreal	$	10,415	$	(1,914	)	$	—		$	8,501
	Foreign Currency Contracts — Citibank N.A.		—		—			—			—
	Foreign Currency Contracts — Morgan Stanley		1,082		(1,082	)		—			—
	Foreign Currency Contracts — Societe Generale		—		—			—			—
	Foreign Currency Contracts — UBS AG		—		—			—			—
	Total	$	11,497	$	(2,996	)	$	—		$	8,501
FlexShares Ready Access Variable Income Fund	Repurchase Agreements — RBS Securities, Inc.	$	3,300,000	$	—		$	(3,300,000	)	$	—
	Repurchase Agreements — SG Americas Sercurities LLC		2,000,000		—			(2,000,000	)		—
	Total	$	5,300,000	$	—		$	(5,300,000	)	$	—


216		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 Fund	Foreign Currency Contracts — Bank of New York	$	—		$	—	$	—	$	—
	Foreign Currency Contracts — Citibank N.A.		(21,228	)		11,994		—		(9,234	)
	Foreign Currency Contracts — Morgan Stanley		(12,404	)		12,404		—		—
	Foreign Currency Contracts — UBS AG		—			—		—		—
	Total	$	(33,632	)	$	24,398	$	—	$	(9,234	)
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund	Foreign Currency Contracts — Citibank N.A.	$	(107	)	$	—	$	—	$	(107	)
	Foreign Currency Contracts — Goldman Sachs		—			—		—		—
	Foreign Currency Contracts — Morgan Stanley		(47,108	)		47,108		—		—
	Foreign Currency Contracts — UBS AG		—			—		—		—
	Total	$	(47,215	)	$	47,108	$	—	$	(107	)
FlexShares Morningstar Global Upstream Natural Resources Index Fund	Foreign Currency Contracts — Bank of Montreal	$	(180,100	)	$	—	$	—	$	(180,100	)
	Foreign Currency Contracts — Bank of New York		—			—		—		—
	Foreign Currency Contracts — Citibank N.A.		—			—		—		—
	Foreign Currency Contracts — Goldman Sachs		(44,758	)		—		—		(44,758	)
	Foreign Currency Contracts — Morgan Stanley		(164,267	)		164,267		—		—
	Foreign Currency Contracts — UBS AG		(138,120	)		—		—		(138,120	)
	Total	$	(527,245	)	$	164,267	$	—	$	(362,978	)
FlexShares STOXX^® Global Infrastructure Index Fund	Foreign Currency Contracts — Citibank N.A.	$	(2,878	)	$	—	$	—	$	(2,878	)
	Foreign Currency Contracts — Goldman Sachs		(5,436	)		—		—		(5,436	)
	Foreign Currency Contracts — Morgan Stanley		(34,587	)		34,587		—		—
	Foreign Currency Contracts — UBS AG		(8,579	)		—		—		(8,579	)
	Total	$	(51,480	)	$	34,587	$	—	$	(16,893	)
FlexShares Global Quality Real Estate Index Fund	Foreign Currency Contracts — Bank of Montreal	$	—		$	—	$	—	$	—
	Foreign Currency Contracts — Citibank N.A.		(132	)		132		—		—
	Foreign Currency Contracts — Morgan Stanley		(24,986	)		16,375		—		(8,611	)
	Foreign Currency Contracts — UBS AG		—			—		—		—
	Total	$	(25,118	)	$	16,507	$	—	$	(8,611	)
FlexShares International Quality Dividend Index Fund	Foreign Currency Contracts — Citibank N.A.	$	(10,580	)	$	—	$	—	$	(10,580	)
	Foreign Currency Contracts — Morgan Stanley		—			—		—		—
	Total	$	(10,580	)	$	—	$	—	$	(10,580	)


FLEXSHARES SEMIANNUAL REPORT			217

Notes to the Financial Statements (cont.)


					Gross Amounts Not Offset in the Statement of Assets and Liabilities
		Gross Amounts of Liabilities presented in Statements of Assets and Liabilities			Financial Instruments		Cash Collateral Pledged		Net Amount
FlexShares International Quality Dividend Defensive Index Fund	Foreign Currency Contracts — Bank of Montreal	$	(24,150	)	$	24,150	$	—	$	—
	Foreign Currency Contracts — Bank of New York		(8,299	)		—		—		(8,299	)
	Foreign Currency Contracts — Citibank N.A.		(6,555	)		6,085		—		(470	)
	Foreign Currency Contracts — Goldman Sachs		(7,531	)		1,148		—		(6,383	)
	Foreign Currency Contracts — Morgan Stanley		(71,836	)		60,051		—		(11,785	)
	Foreign Currency Contracts — Societe Generale		(2,564	)		2,564		—		—
	Foreign Currency Contracts — UBS AG		(6,104	)		6,104		—		—
	Total	$	(127,039	)	$	100,102	$	—	$	(26,937	)
FlexShares International Quality Dividend Dynamic Index Fund	Foreign Currency Contracts — Bank of Montreal	$	(1,914	)	$	1,914	$	—	$	—
	Foreign Currency Contracts — Citibank N.A.		(1,369	)		—		—		(1,369	)
	Foreign Currency Contracts — Morgan Stanley		(9,765	)		1,082		—		(8,683	)
	Foreign Currency Contracts — Societe Generale		(2,826	)		—		—		(2,826	)
	Foreign Currency Contracts — UBS AG		(4,363	)		—		—		(4,363	)
	Total	$	(20,237	)	$	2,996	$	—	$	(17,241	)

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, 2015

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

52,055

Equity Index Futures Contracts

UBS
AG

Assets — Unrealized appreciation on futures contracts

FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund

102,113

Equity Index Futures Contracts

UBS
AG

Liabilities — Unrealized depreciation on futures contracts

FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund

(21,185

)

Foreign Currency Contracts

Bank of
New
York,
Citibank
N.A.,
Morgan
Stanley
and
UBS
AG

Assets — Unrealized appreciation on forward foreign currency contracts

FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund

69,528


218		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

Citibank
N.A. and
Morgan
Stanley

Liabilities — Unrealized depreciation on forward foreign currency contracts

FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund

(33,632

)

Equity Index Futures Contracts

UBS AG

Assets — Unrealized appreciation on futures contracts

FlexShares Morningstar Emerging Markets Factor Tilt Index Fund

64,230

Equity Index Futures Contracts

UBS AG

Liabilities — Unrealized depreciation on futures contracts

FlexShares Morningstar Emerging Markets Factor Tilt Index Fund

(6,364

)

Foreign Currency Contracts

Goldman
Sachs,
Morgan
Stanley
and UBS
AG

Assets — Unrealized appreciation on forward foreign currency contracts

FlexShares Morningstar Emerging Markets Factor Tilt Index Fund

68,580

Foreign Currency Contracts

Citibank
N.A. and
Morgan
Stanley

Liabilities — Unrealized depreciation on forward foreign currency contracts

FlexShares Morningstar Emerging Markets Factor Tilt Index Fund

(47,215

)

Equity Index Futures Contracts

UBS AG

Assets — Unrealized appreciation on futures contracts

FlexShares Morningstar Global Upstream Natural Resources Index Fund

1,098,653

Equity Index Futures Contracts

UBS AG

Liabilities — Unrealized depreciation on futures contracts

FlexShares Morningstar Global Upstream Natural Resources Index Fund

(33,667

)

Foreign Currency Contracts

Bank of
New
York,
Citibank
N.A. and
Morgan
Stanley

Assets — Unrealized appreciation on forward foreign currency contracts

FlexShares Morningstar Global Upstream Natural Resources Index Fund

555,330

Foreign Currency Contracts

Bank of
Montreal,
Goldman
Sachs,
Morgan
Stanley
and UBS
AG

Liabilities — Unrealized depreciation on forward foreign currency contracts

FlexShares Morningstar Global Upstream Natural Resources Index Fund

(527,245

)

Equity Index Futures Contracts

Citibank
N.A.

Assets — Unrealized appreciation on futures contracts

FlexShares STOXX^® Global Broad Infrastructure Index Fund

39,233

Equity Index Futures Contracts

Citibank
N.A.

Liabilities — Unrealized depreciation on futures contracts

FlexShares STOXX^® Global Broad Infrastructure Index Fund

(4,785

)


FLEXSHARES SEMIANNUAL REPORT			219

Notes to the Financial Statements (cont.)

Derivatives by risk type

Counterparty

Statements of Assets
and Liabilities Location

Fund

Value

Foreign Currency Contracts

Morgan
Stanley

Assets — Unrealized appreciation on forward foreign currency contracts

FlexShares STOXX^® Global Broad Infrastructure Index Fund

102,988

Foreign Currency Contracts

Citibank
N.A.,
Goldman
Sachs,
Morgan
Stanley
and UBS
AG

Liabilities — Unrealized depreciation on forward foreign currency contracts

FlexShares STOXX^® Global Broad Infrastructure Index Fund

(51,480

)

Equity Index Futures Contracts

Citibank
N.A.

Assets — Unrealized appreciation on futures contracts

FlexShares Global Quality Real Estate Index Fund

21,173

Equity Index Futures Contracts

Citibank
N.A.

Liabilities — Unrealized depreciation on futures contracts

FlexShares Global Quality Real Estate Index Fund

(3,579

)

Foreign Currency Contracts

Bank of
Montreal,
Citibank
N.A.,
Morgan
Stanley
and UBS
AG

Assets — Unrealized appreciation on forward foreign currency contracts

FlexShares Global Quality Real Estate Index Fund

26,915

Foreign Currency Contracts

Citibank
N.A. and
Morgan
Stanley

Liabilities — Unrealized depreciation on forward foreign currency contracts

FlexShares Global Quality Real Estate Index Fund

(25,118

)

Equity Index Futures Contracts

Citibank
N.A.

Assets — Unrealized appreciation on futures contracts

FlexShares Quality Dividend Index Fund

61,962

Equity Index Futures Contracts

Citibank
N.A.

Assets — Unrealized appreciation on futures contracts

FlexShares Quality Dividend Defensive Index Fund

19,390

Equity Index Futures Contracts

Citibank
N.A.

Assets — Unrealized appreciation on futures contracts

FlexShares Quality Dividend Dynamic Index Fund

16,799

Equity Index Futures Contracts

Citibank
N.A.

Assets — Unrealized appreciation on futures contracts

FlexShares International Quality Dividend Index Fund

152,703

Equity Index Futures Contracts

Citibank
N.A.

Liabilities — Unrealized depreciation on futures contracts

FlexShares International Quality Dividend Index Fund

(20,885

)

Foreign Currency Contracts

Morgan
Stanley

Assets — Unrealized appreciation on forward foreign currency contracts

FlexShares International Quality Dividend Index Fund

7,093

Foreign Currency Contracts

Citibank
N.A.

Liabilities — Unrealized depreciation on forward foreign currency contracts

FlexShares International Quality Dividend Index Fund

(10,580

)

Equity Index Futures Contracts

Citibank
N.A.

Assets — Unrealized appreciation on futures contracts

FlexShares International Quality Dividend Defensive Index Fund

368


220		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)

Derivatives by risk type

Counterparty

Statements of Assets
and Liabilities Location

Fund

Value

Equity Index Futures Contracts

Citibank
N.A.

Liabilities — Unrealized depreciation on futures contracts

FlexShares International Quality Dividend Defensive Index Fund

(15,899

)

Foreign Currency Contracts

Bank of
Montreal,
Citibank
N.A.,
Goldman
Sachs,
Morgan
Stanley,
Societe
Generale
and UBS
AG

Assets — Unrealized appreciation on forward foreign currency contracts

FlexShares International Quality Dividend Defensive Index Fund

207,040

Foreign Currency Contracts

Bank of
Montreal,
Bank of
New
York,
Citibank
N.A.,
Goldman
Sachs,
Morgan
Stanley,
Societe
Generale
and UBS
AG

Liabilities — Unrealized depreciation on forward foreign currency contracts

FlexShares International Quality Dividend Defensive Index Fund

(127,039

)

Equity Index Futures Contracts

Citibank
N.A.

Assets — Unrealized appreciation on futures contracts

FlexShares International Quality Dividend Dynamic Index Fund

128

Equity Index Futures Contracts

Citibank
N.A.

Liabilities — Unrealized depreciation on futures contracts

FlexShares International Quality Dividend Dynamic Index Fund

(5,170

)

Foreign Currency Contracts

Bank of
Montreal
and
Morgan
Stanley

Assets — Unrealized appreciation on forward foreign currency contracts

FlexShares International Quality Dividend Dynamic Index Fund

11,497

Foreign Currency Contracts

Bank of
Montreal,
Citibank
N.A.,
Morgan
Stanley,
Societe
Generale
and UBS
AG

Liabilities — Unrealized depreciation on forward foreign currency contracts

FlexShares International Quality Dividend Dynamic Index Fund

(20,237

)


FLEXSHARES SEMIANNUAL REPORT			221

Notes to the Financial Statements (cont.)

The Effect of Derivative Instruments on the Statements of Operations for the Period Ended April 30, 2015


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	$	755,552		$	(142,980	)
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		708,050			94,016
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		(281,441	)		102,047
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		182,927			33,756
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		(16,677	)		38,221
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		1,421,518			1,333,932
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		(733,579	)		78,339


222		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
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	$	344,141		$	22,343
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		(128,073	)		106,124
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		89,877			(5,331	)
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		25,295			(799	)
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		535,620			(96,190	)
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		253,711			(88,386	)
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		67,895			2,932
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		(379,579	)		121,790


FLEXSHARES SEMIANNUAL REPORT			223

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 Index Fund	$	(56,630	)	$	7,471
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		(11,584	)		(49,108	)
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		(72,675	)		171,111
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		(22,647	)		(37,270	)
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		15,889			(8,740	)

At April 30, 2015, 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		—	$	—		32	$	115,741
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund		18		151,320		97		69,019
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund		13		147,799		49		53,129
FlexShares Morningstar Global Upstream Natural Resources Index Fund		21		1,061,807		412		93,189
FlexShares STOXX^® Global Broad Infrastructure Index Fund		15		277,845		40		77,869


224		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)


	Foreign Exchange Contracts				Equity Contracts
Fund	Number of Trades		Average Notional Amount		Number of Trades		Average Notional Amount
FlexShares Global Quality Real Estate Index Fund		12	$	111,737		13	$	95,815
FlexShares Quality Dividend Index Fund		—		—		41		103,945
FlexShares Quality Dividend Defensive Index Fund		—		—		10		103,945
FlexShares Quality Dividend Dynamic Index Fund		—		—		9		103,945
FlexShares International Quality Dividend Index Fund		4		966,669		155		27,414
FlexShares International Quality Dividend Defensive Index Fund		38		265,219		91		18,621
FlexShares International Quality Dividend Dynamic Index Fund		17		100,518		30		21,481

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, 2014, 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 Financial Accounting Standards Board (“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 Morningstar Global Upstream Natural Resources Index Fund, FlexShares STOXX Global 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


FLEXSHARES SEMIANNUAL REPORT			225

Notes to the Financial Statements (cont.)

International Quality Dividend Dynamic Index Fund may hold the securities of real estate investment trusts (“REITs”). Distributions from such investments may be comprised of return of capital, capital gains and income. The actual character of amounts received during the year is not known until after the REIT’s fiscal year end. The Fund records the character of distributions received from REITs during the year based on estimates available. The characterization of distributions received by the Fund may be subsequently revised based on information received from the REITs after their tax reporting periods concluded.

All foreign taxes are recorded in accordance with the applicable foreign tax regulations and rates that exist in the foreign markets in which a Fund invests. These foreign taxes, if any, are paid by the Funds and disclosed in the Statements of Operations. Foreign taxes payable, if any, are reflected in the Funds’ Statements of Assets and Liabilities.

Expenses directly attributable to a Fund are charged to that Fund, while expenses which are attributable to more than one Fund are allocated among the respective Funds based upon relative net assets or another reasonable basis.

4. Investment Advisory Fees

NTI serves as the Investment Adviser of the Funds pursuant to the Investment Advisory Agreement. The Investment Adviser is responsible for making investment decisions for the Funds and for placing purchase and sale orders for portfolio securities, subject to the general supervision of the Trust’s Board.

As compensation for its advisory services and assumption of Fund expenses, NTI is entitled to a unitary management fee, computed daily and payable monthly, at the annual rates set forth in the table below (expressed as a percentage of each Fund’s respective average daily net assets).

From the unitary management fee, NTI pays most of the expenses of the Fund, including the cost of transfer agency, custody, fund administration, legal, audit and other services (“Covered Expenses”). Covered Expenses do not include the 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 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	%
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 Ready Access Variable Income Fund		0.25	%


226		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)

The Investment Adviser may voluntarily waive any portion of its advisory fee from time to time, and may discontinue or modify any such voluntary waiver in the future at its discretion.

Amounts voluntarily waived by the Investment Adviser may not be recouped by the Investment Adviser. As of April 30, 2015, no advisory fees had been waived.

5. Administration Fees

JPMorgan Chase Bank, N.A. (“the Administrator”) serves as administrator of the Funds. The Administrator provides certain administrative services to the Funds. For these services, the Administrator is entitled to certain fees and reasonable out-of-pocket expenses. These fees and expenses are Covered Expenses as defined above.

6. Custodian Fees

JPMorgan Chase Bank, N.A. (the “Custodian”) acts as custodian for the Funds in accordance with a Global Custody Agreement. The Custodian holds cash, securities and other assets of the Funds as required by the 1940 Act. As compensation for the services rendered under the agreement, the Custodian is entitled to fees and reasonable out-of-pocket expenses. These fees and expenses are Covered Expenses as defined above.

7. Trustees Fees

The Trust compensates each Trustee who is not an officer, director or employee of Northern Trust Corporation, or its subsidiaries, for his or her services as a Trustee of the Trust and as a member of Board committees.

NTI has contractually agreed with each Fund to reimburse the fees and expenses of the Trust’s independent trustees and their independent legal counsel paid by each Fund until at least March 1, 2016. After this date, NTI and each Fund may mutually agree to extend the contractual arrangement. The Board 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 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.


FLEXSHARES SEMIANNUAL REPORT			227

Notes to the Financial Statements (cont.)

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, 2015		As of October 31, 2014
FlexShares Morningstar US Market Factor Tilt Index Fund	$	1,500	$	7,500
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund		40,000		60,000
FlexShares Morningstar Emerging Market Factor Tilt Index Fund		—		25,000
FlexShares Morningstar Global Upstream Natural Resources Index Fund		21,000		24,000
FlexShares STOXX^® Global Broad Infrastructure Index Fund		8,000		12,000
FlexShares Global Quality Real Estate Index Fund		6,000		20,000
FlexShares Quality Dividend Index Fund		5,500		19,000
FlexShares Quality Dividend Defensive Index Fund		2,250		10,000
FlexShares Quality Dividend Dynamic Index Fund		750		5,000
FlexShares International Quality Dividend Index Fund		35,000		95,000
FlexShares International Quality Dividend Defensive Index Fund		10,000		30,000
FlexShares International Quality Dividend Dynamic Index Fund		—		55,000
FlexShares Disciplined Duration MBS Index Fund		1,200		400
FlexShares Ready Access Variable Income Fund		350		700

10. Investment Transactions

For the six months ended April 30, 2015, 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, 2015, were as follows:


Fund	Purchases		Sales
FlexShares Morningstar US Market Factor Tilt Index Fund	$	163,489,508	$	159,402,905
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund		39,361,600		72,737,081
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund		21,671,158		41,798,952
FlexShares Morningstar Global Upstream Natural Resources Index Fund		233,496,033		295,626,601
FlexShares STOXX^® Global Broad Infrastructure Index Fund		31,602,680		27,258,401
FlexShares Global Quality Real Estate Index Fund		22,938,771		22,338,946
FlexShares Quality Dividend Index Fund		274,984,740		271,721,086
FlexShares Quality Dividend Defensive Index Fund		65,014,793		59,999,711
FlexShares Quality Dividend Dynamic Index Fund		41,766,812		41,496,215
FlexShares International Quality Dividend Index Fund		154,238,318		143,948,843
FlexShares International Quality Dividend Defensive Index Fund		47,759,291		41,722,535
FlexShares International Quality Dividend Dynamic Index Fund		35,490,051		36,133,361
FlexShares iBoxx 3-Year Target Duration TIPS Index Fund		688,264,853		682,162,534
FlexShares iBoxx 5-Year Target Duration TIPS Index Fund		296,290,039		293,930,005


228		FLEXSHARES SEMIANNUAL REPORT

Notes to the Financial Statements (cont.)


Fund	Purchases		Sales
FlexShares Disciplined Duration MBS Index Fund	$	24,660,151	$	12,682,669
FlexShares Credit-Scored US Corporate Bond Index Fund		2,037,456		1,963,482
FlexShares Ready Access Variable Income Fund*		32,531,751		17,433,071

*	Include $2,499,824 in purchases and $2,502,969 in sales in U.S. Government Securities.

11. In-Kind Transactions

During the six-month period ended April 30, 2015, the Funds received securities in exchange for subscriptions of shares (subscriptions-in-kind). For the six-month period ended April 30, 2015, 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	$	17,163,706
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund		36,843,832
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund		—
FlexShares Morningstar Global Upstream Natural Resources Index Fund		270,540,248
FlexShares STOXX^® Global Broad Infrastructure Index Fund		80,013,185
FlexShares Global Quality Real Estate Index Fund		30,267,586
FlexShares Quality Dividend Index Fund		134,067,508
FlexShares Quality Dividend Defensive Index Fund		60,118,033
FlexShares Quality Dividend Dynamic Index Fund		10,404,990
FlexShares International Quality Dividend Index Fund		60,518,864
FlexShares International Quality Dividend Defensive Index Fund		59,673,746
FlexShares International Quality Dividend Dynamic Index Fund		32,283,729
FlexShares iBoxx 3-YearTarget Duration TIPS Index Fund		73,073,226


Fund	Fair Value
FlexShares iBoxx 5-Year Target Duration TIPS Index Fund	$	131,151,095
FlexShares Disciplined Duration MBS Index Fund		—
FlexShares Credit-Scored US Corporate Bond Index Fund		4,908,691
FlexShares Ready Access Variable Income Fund		—

During the six-month period ended April 30, 2015, 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 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, and the FlexShares iBoxx 5-Year Target Duration TIPS Index 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 April 30, 2015, the fair value and realized gains (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	$	4,334,726	$	1,926,208
FlexShares Morningstar Developed Markets ex-US Factor Tilt Index Fund		109,695,839		15,213,687
FlexShares Morningstar Emerging Markets Factor Tilt Index Fund		9,205,103		1,662,566
FlexShares Morningstar Global Upstream Natural Resources Index Fund		388,441,229		31,186,686


FLEXSHARES SEMIANNUAL REPORT			229

Notes to the Financial Statements (cont.)


Fund	Fair Value		Net Realized Gains(Losses)
FlexShares Quality Dividend Index Fund	$	85,153,376	$	15,481,091
FlexShares Quality Dividend Defensive Index Fund		10,171,533		2,192,770
FlexShares Quality Dividend Dynamic Index Fund		1,734,407		392,247
FlexShares International Quality Dividend Index Fund		21,889,668		1,474,090
FlexShares International Quality Dividend Defensive Index Fund		29,795,060		1,966,800
FlexShares International Quality Dividend Dynamic Index Fund		71,755,451		(708,502	)
FlexShares iBoxx 3-Year Target Duration TIPS Index Fund		159,351,208		(2,289,725	)
FlexShares iBoxx 5-Year Target Duration TIPS Index Fund		9,927,046		(98,537	)

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.


230		FLEXSHARES SEMIANNUAL REPORT

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, 2015.

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 2015.

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 04/30/15		Expenses Paid During the Period*		Annualized Expense Ratio During Period
FlexShares^® Morningstar US Market Factor Tilt Index Fund
Actual	$	1,000.00	$	1,041.90	$	1.37		0.27	%
Hypothetical	$	1,000.00	$	1,023.46	$	1.35		0.27	%
FlexShares^® Morningstar Developed Markets ex-US Factor Tilt Index Fund
Actual	$	1,000.00	$	1,063.50	$	2.15		0.42	%
Hypothetical	$	1,000.00	$	1,022.71	$	2.11		0.42	%
FlexShares^® Morningstar Emerging Markets Factor Tilt Index Fund
Actual	$	1,000.00	$	1,052.20	$	3.31		0.65	%
Hypothetical	$	1,000.00	$	1,021.57	$	3.26		0.65	%


FLEXSHARES SEMIANNUAL REPORT			231

Fund Expenses (cont.)


	Beginning Account Value		Ending Account Value 04/30/15		Expenses Paid During the Period*		Annualized Expense Ratio During Period
FlexShares^® Morningstar Global Upstream Natural Resources Index Fund
Actual	$	1,000.00	$	985.40	$	2.36		0.48	%
Hypothetical	$	1,000.00	$	1,022.41	$	2.41		0.48	%
FlexShares^® STOXX^® Global Broad Infrastructure Index Fund
Actual	$	1,000.00	$	1,020.20	$	2.35		0.47	%
Hypothetical	$	1,000.00	$	1,022.46	$	2.36		0.47	%
FlexShares^® Global Quality Real Estate Index Fund
Actual	$	1,000.00	$	1,052.60	$	2.29		0.45	%
Hypothetical	$	1,000.00	$	1,022.56	$	2.26		0.45	%
FlexShares^® Quality Dividend Index Fund
Actual	$	1,000.00	$	1,042.90	$	1.87		0.37	%
Hypothetical	$	1,000.00	$	1,022.96	$	1.86		0.37	%
FlexShares^® Quality Dividend Defensive Index Fund
Actual	$	1,000.00	$	1,055.10	$	1.89		0.37	%
Hypothetical	$	1,000.00	$	1,022.96	$	1.86		0.37	%
FlexShares^® Quality Dividend Dynamic Index Fund
Actual	$	1,000.00	$	1,033.40	$	1.87		0.37	%
Hypothetical	$	1,000.00	$	1,022.96	$	1.86		0.37	%
FlexShares^® International Quality Dividend Index Fund
Actual	$	1,000.00	$	1,023.10	$	2.36		0.47	%
Hypothetical	$	1,000.00	$	1,022.46	$	2.36		0.47	%
FlexShares^® International Quality Dividend Defensive Index Fund
Actual	$	1,000.00	$	1,014.90	$	2.35		0.47	%
Hypothetical	$	1,000.00	$	1,022.46	$	2.36		0.47	%
FlexShares^® International Quality Dividend Dynamic Index Fund
Actual	$	1,000.00	$	1,042.60	$	2.38		0.47	%
Hypothetical	$	1,000.00	$	1,022.46	$	2.36		0.47	%
FlexShares^® iBoxx 3-Year Target Duration TIPS Index Fund
Actual	$	1,000.00	$	994.30	$	0.99		0.20	%
Hypothetical	$	1,000.00	$	1,023.80	$	1.00		0.20	%
FlexShares^® iBoxx 5-Year Target Duration TIPS Index Fund
Actual	$	1,000.00	$	1,006.00	$	0.99		0.20	%
Hypothetical	$	1,000.00	$	1,023.80	$	1.00		0.20	%


232		FLEXSHARES SEMIANNUAL REPORT

Fund Expenses (cont.)


	Beginning Account Value		Ending Account Value 04/30/15		Expenses Paid During the Period*		Annualized Expense Ratio During Period
FlexShares^® Disciplined Duration MBS Index Fund
Actual	$	1,000.00	$	1,017.50	$	1.00		0.20	%
Hypothetical	$	1,000.00	$	1,023.80	$	1.00		0.20	%
FlexShares^® Credit-Scored US Corporate Bond Index Fund^(a)
Actual	$	1,000.00	$	1,024.60	$	1.03		0.22	%
Hypothetical	$	1,000.00	$	1,023.70	$	1.10		0.22	%
FlexShares^® Ready Access Variable Income Fund
Actual	$	1,000.00	$	1,003.20	$	1.24		0.25	%
Hypothetical	$	1,000.00	$	1,023.55	$	1.25		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 12, 2014. 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 169 divided by 365 (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 181 divided by 365 (to reflect the one-half year period).


FLEXSHARES SEMIANNUAL REPORT			233

Approval of Advisory Agreement

The Board of Trustees (the “Board”) of the FlexShares Trust (the “Trust”) oversees the management of the Trust and each separate series of the Trust covered in this report and, as required by law, determines whether to approve the Trust’s investment advisory and ancillary services agreement (the “Advisory Agreement”) with Northern Trust Investments, Inc. (“NTI”), an indirect subsidiary of the Northern Trust Corporation.

*****

The Board, including all of the Independent Trustees who are not parties to the Advisory Agreement or interested persons of any such party (the “Independent Trustees”), met on September 25, 2014 (the “September Meeting”) to consider whether to approve the Advisory Agreement for the FlexShares^® Credit-Scored US Corporate Bond Index Fund (the “Credit-Scored Fund”).

In advance of, and in preparation for, the Trustees’ consideration of the Advisory Agreement at the September Meeting, the Trustees received written materials relating to the Advisory Agreement and had the opportunity to ask questions and request further information in connection with their consideration. At the Meeting, the Trustees considered the verbal presentations by NTI and discussed all of the information that had been provided. Among other things, the Board considered comparisons with other funds in relevant peer universes and peer groups that had been objectively determined solely by Lipper, Inc. (“Lipper”), an independent provider of fund data.

The Independent Trustees met with their independent legal counsel separately from the “interested” Trustee of the Trust and officers and employees of the Trust and NTI to consider approval of the Advisory Agreement. After evaluating all the materials, the Trustees, including the Independent Trustees, concluded that the Advisory Agreement for the Credit-Scored Fund was in the best interest of the Credit-Scored Fund and its shareholders and approved the Advisory Agreement.

In approving the Advisory Agreement, the Board, including the Independent Trustees advised by independent legal counsel, considered the factors they deemed relevant, including, but not limited to: (1) the nature, extent and

quality of the services that NTI is expected to provide to the Credit-Scored Fund; (2) the anticipated fees and projected expenses for the Credit-Scored Fund; (3) the projected profits to be realized by NTI and its affiliates from the relationship with the Credit-Scored Fund; (4) the extent to which economies of scale would be realized if the Credit-Scored Fund grew and whether the fee levels in the Advisory Agreement reflected these economies of scale; and (5) other benefits that NTI and its affiliates may realize as a result of their relationship with the Credit-Scored Fund. In their deliberations, the Trustees did not identify any single factor which alone was responsible for the Board’s decision to approve the Advisory Agreement.

The material factors and conclusions that formed the basis for the Trustees reaching their determinations to approve the Advisory Agreement are separately discussed below.

Nature, Quality and Extent of the Services

The Trustees examined the nature, quality and extent of the services to be provided by NTI to the Credit-Scored Fund. They evaluated information regarding NTI’s organizational structure and the experience and professional qualifications of NTI’s key personnel. They also considered NTI’s responsibilities under the Advisory Agreement to perform securities trading services and ancillary services, including among other things, filing reports with the Securities and Exchange Commission, periodically updating the Credit-Scored Fund’s registration statement and establishing and maintaining the Credit-Scored Fund’s website to comply with regulatory requirements. The Trustees also considered the quality of NTI’s resources that would be made available to the Credit-Scored Fund. The Trustees noted NTI’s and its affiliates’ financial positions, stability, and commitment to continuing to grow the exchange-traded fund business. The Board also considered the operation and strength of NTI’s compliance program. The Trustees concluded that they were satisfied with the nature, quality and extent of the investment management services proposed to be provided by NTI to the Credit-Scored Fund. They further determined that there was a reasonable basis on which to conclude that the Credit-Scored Fund would benefit from the services proposed to be provided by NTI under the Advisory Agreement.


234		FLEXSHARES SEMIANNUAL REPORT

Approval of Advisory Agreement (cont.)

Performance

The Trustees considered that, because the Credit-Scored Fund had not yet commenced investment operations, meaningful data relating to its performance was not available and could not be a factor in the initial approval of the Advisory Agreement.

Fees and Expenses

The Trustees considered the proposed unitary fee structure and the Credit-Scored Fund’s projected expenses. They noted that under the Advisory Agreement, NTI would be responsible for most expenses of the Credit-Scored Fund, including the cost of transfer agency, custody, fund administration, legal, audit and other services. The Trustees considered that NTI would not be responsible under the Advisory Agreement for the Credit-Scored Fund’s advisory fees, 12b-1 fees (to the extent applicable), interest, taxes, brokerage and other trading expenses, fees and expenses of the Trust’s Independent Trustees and independent legal counsel to the Trust’s Independent Trustees, litigation expenses and other extraordinary expenses. The Trustees also considered, however, the proposed agreement between the Credit-Scored Fund and NTI, whereby NTI agreed to reimburse certain fees and expenses of the Credit-Scored Fund for at least one year from the effective date of the Credit-Scored Fund’s prospectus.

The Trustees considered comparative fee data for the Credit-Scored Fund, which included fees and expenses paid by comparable ETFs selected by Lipper, an independent data service. The Trustees noted that the Credit-Scored Fund’s total expense ratio was ranked third compared to five other comparable funds. They also considered that the Credit-Scored Fund’s projected expenses were slightly lower than the median expenses of the comparable ETFs that Lipper had selected. The Board also considered that the Credit-Scored Fund’s contractual advisory fee and projected actual advisory fee were equal to its expense group median. The Trustees also noted that NTI did not manage any other accounts pursuing investment strategies similar to those of the Credit-Scored Fund.

Projected Profits of NTI

The Trustees examined NTI’s projected profits in serving as the Credit-Scored Fund’s investment adviser. The Trustees noted information provided by NTI with respect to the length of time it would take to become profitable with respect to the Credit-Scored Fund. The Trustees also considered NTI’s projection of asset levels in the Credit-Scored Fund.

Economies of Scale

The Trustees further considered whether NTI may realize economies of scale in managing and supporting the Credit-Scored Fund. In this regard, the Trustees considered that the management fee did not contain any breakpoints. The Trustees determined that in light of the unitary fee structure, the fact that NTI will not initially make any profit from its services to the Credit-Scored Fund, as well as the significant investment NTI was making into the Credit-Scored Fund, that breakpoints were not necessary at the present time.

Other Benefits to NTI

In addition to considering the profits that may be realized by NTI, the Trustees considered information regarding the direct and indirect benefits that NTI may receive as a result of its relationship with the Credit-Scored Fund, including any compensation to be paid to NTI’s affiliates. The Trustees also considered that some of the Credit-Scored Fund’s expected shareholders may have other client relationships with NTI’s affiliates.

For the foregoing reasons, the Board, including a majority of the Independent Trustees, determined that the Advisory Agreement was fair and reasonable in light of the services to be provided, fees to be charged and such other matters as the Trustees considered relevant in the exercise of their reasonable business judgment.


FLEXSHARES SEMIANNUAL REPORT			235

Supplemental Information

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 the Notes to the Financial Statements, 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 and the FlexShares iBoxx 5-Year Target Duration TIPS 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 may be adversely impacted by events affecting 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.

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, and the FlexShares


236		FLEXSHARES SEMIANNUAL REPORT

Supplemental Information (cont.)

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 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 Morningstar Global Upstream Natural Resources Index Fund, FlexShares STOXX^® Global Broad Infrastructure Index Fund, FlexShares Global Quality Real Estate Index Fund, FlexShares iBoxx 3-Year Target Duration TIPS Index Fund, FlexShares iBoxx 5-Year Target Duration TIPS Index Fund, FlexShares Credit-Scored US Corporate Bond Index Fund, and the FlexShares Ready Access Variable Income Fund 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.

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 Morningstar Global Upstream Natural Resources Index Fund, FlexShares STOXX^® Global Broad Infrastructure Index Fund, and the FlexShares Global Quality Real Estate Index Fund 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, and the FlexShares Global Quality Real Estate 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.


FLEXSHARES SEMIANNUAL REPORT			237

Supplemental Information (cont.)

The following risk applies only to the FlexShares Morningstar Global Upstream Natural Resources Index Fund:

Global Natural Resource Industry Risk

The 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.

The following risks apply to the FlexShares Global Quality Real Estate 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.


238		FLEXSHARES SEMIANNUAL REPORT

Supplemental Information (cont.)

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 risks apply to the FlexShares Disciplined Duration MBS Index Fund, FlexShares Credit-Scored US 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 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.

The following risk applies to the FlexShares Disciplined Duration MBS Index Fund:

Mortgage Backed Pass-Through Securities Risk

The Fund is subject to the risk of investing in mortgage-backed securities issued by a U.S. Agency. These securities may not be backed by the full faith and credit of the U.S. government. Mortgage-backed securities are subject to Credit (or Default) Risk,


FLEXSHARES SEMIANNUAL REPORT			239

Supplemental Information (cont.)

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:

Corporate Bond Risk

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 risk applies to the 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.


240		FLEXSHARES SEMIANNUAL REPORT

For More Information

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			241

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^® Global Upstream Natural Resources Index^SM, Morningstar^® US Market Factor Tilt Index^SM, Morningstar^® Developed Markets ex-US Factor Tilt Index^SM and Morningstar^® Emerging Markets Factor Tilt Index^SM 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 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 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.

FS00041-0615

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, 2015

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, 2015



By:		/s/ Randal Rein
		Randal Rein
		Treasurer and Principal Financial Officer
		July 7, 2015