Fund Description: FlexShares STOXX US ESG Impact Index Fund is an exchange-traded index fund or Index ETF which is a separate investment portfolio of the FlexShares Trust, an open-end investment management company. INVESTMENT OBJECTIVE: The FlexShares STOXX US ESG Impact Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the STOXX USA ESG Impact Index. INDEX DESCRIPTION: The STOXX USA ESG Impact Index is an optimized index designed to provide broad market exposure that is tilted toward U.S. companies that score better with respect to a small set of environmental, social and governance (ESG) characteristics and to provide the potential for attractive risk-adjusted performance relative to the STOXX USA 900 Index, as determined by STOXX Ltd. (the Index Provider) in accordance with its methodology and analytical findings. The Index Provider assigns an ESG score to each eligible U.S. company in the STOXX Global 1800 Index through a proprietary model based on select ESG criteria. The STOXX Global 1800 Index is comprised of the 1800 largest companies in the global developed markets, including the U.S. The bottom 50% of companies based on their ESG scores are excluded from the Index. The weights of the remaining eligible companies in the Index are then adjusted. The maximum weight that can be assigned to a single company is limited to 5% at time of each index rebalancing or reconstitution. The Index’s five largest constituents (by weighting) were Apple, Inc., Microsoft Corp., Exxon Mobil Corp., Johnson & Johnson Co. and General Electric Co. which may change over time. FUND STRATEGY: A passive or indexing approach is used to try to achieve the Fund’s investment objective. Unlike many investment companies, the Fund does not try to beat the index it tracks and does not seek temporary defensive positions when markets decline or appear overvalued. Representative sampling is a strategy used to manage the Fund by investing in a representative sample of securities that collectively has an investment profile close to the Index. Securities selected are expected to have, in the aggregate, investment characteristics (based on factors such as market capitalization and industry weightings), fundamental characteristics (such as return variability and yield) and liquidity measures similar to those of the Index. The Fund may or may not hold all of the securities that are included in the Index. Under normal circumstances, the Fund will invest at least 80% of its total assets in the securities of the Index. The Fund may also invest up to 20% of its assets in cash and cash equivalents, including shares of money market funds, futures contracts and options on futures contracts, as well as securities not included in the Index. FUND MANAGEMENT: Northern Trust Investments, Inc. (NTI), an indirect subsidiary of Northern Trust Corp. serves as the Investment Adviser of the Fund.