Fund Description: FlexShares STOXX Global 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 Global ESG Impact Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the STOXX Global ESG Impact Index. INDEX DESCRIPTION: The STOXX Global ESG Impact Index is an optimized index designed to provide broad market exposure that is tilted toward global 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 Global 1800 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 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 Index’s five largest constituents (by weighting) were Apple, Inc., Microsoft Corp., Johnson & Johnson Co., General Electric Co. and Exxon Mobil Corp. The top five countries (by weighting) represented in the Index were the United States (55.6%), Japan (9.4%), Great Britain (8.8%), France (4.8%) and Switzerland (4.6%). The Index is governed by published, objective rules for security selection, exclusion, rebalancing and adjustments for corporate actions and is reconstituted on a quarterly basis. The composition of the Index will 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 and in American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) (collectively Depositary Receipts) based on the securities in 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, options on futures contracts and forward currency contracts, as well as securities not included in the Index. The Fund may enter into forward foreign currency exchange contracts in order to facilitate local settlements or to protect against currency exposure in connection with their distributions to shareholders. The Fund does not expect to engage in currency transactions for speculative purposes or for purposes of hedging against declines in the value of its assets that are denominated in a foreign currency. FUND MANAGEMENT: Northern Trust Investments, Inc. (NTI), an indirect subsidiary of Northern Trust Corp. serves as the Investment Adviser of the Fund.