Fund Description: FlexShares Global Upstream Natural Resources 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 Global Upstream Natural Resources Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Morningstar Global Upstream Natural Resources Index. INDEX DESCRIPTION: The Morningstar Global Upstream Natural Resources Index reflects the performance of a selection of equity securities that are traded in or are issued by companies domiciled in global developed or emerging markets including the U.S. The companies included in the Index have significant business operations in the ownership, management and/or production of natural resources in energy, agriculture, precious or industrial metals, timber and water resources sectors, as determined by the Index Provider pursuant to its index methodology. In addition to tracking the performance of the Index, the Fund's Investment Adviser seeks to minimize portfolio turnover and tax inefficiencies. As of commencement of operation, the Index comprised of 118 stocks and its three largest constituents (by weighting) were Potash Corp. of Saskatchewan Inc., Exxon Mobil Corp. and BHP Billiton Ltd. The top five countries (by weighting) represented in the Index were the United States, Canada, the United Kingdom, Australia and Russia, and in the aggregate represented 76.51% of the Index. The Index is governed by published, objective rules for security selection, exclusion, rebalancing and adjustments for corporate actions and is reconstituted on an annual basis. The Fund’s Index Provider, Morningstar, Inc., determines the composition and relative weightings of the securities in the Index and publishes information regarding the market value of the Index. 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. Funds that employ a representative sampling strategy may incur tracking error risk to a greater extent than a fund that seeks to replicate an index. The Fund generally will invest under normal circumstances at least 80% of its total assets in the securities of the Index and in American Depositary Receipts and Global Depositary Receipts based on the securities in its 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, forward currency contracts, options and total return swaps, as well as securities not included in the Index. FUND MANAGEMENT: Northern Trust Investments, Inc. (NTI), an indirect subsidiary of Northern Trust Corporation, serves as the Investment Adviser of the Fund.