Fund Description: FlexShares US Quality Large Cap 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 US Quality Large Cap Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust Quality Large Cap Index. INDEX DESCRIPTION: The Northern Trust Quality Large Cap Index is designed to measure the performance of companies that exhibit certain quality, valuation and momentum characteristics within a universe of publicly-traded US large capitalization equity securities. The universe is comprised of the 600 largest companies in the Northern Trust 1250 Index, a float-adjusted market capitalization weighted index comprised of the 1250 largest U.S. domiciled companies by market capitalization. Eligible securities are selected and the relative weightings of the securities are determined to optimize exposure to (i) companies that exhibit financial strength and stability relative to the broader universe of eligible securities, as measured through a proprietary scoring model; (ii) securities trading at lower valuations; and (iii) securities with positive momentum. The Index is reconstituted on a quarterly basis. 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 used by investing in a representative sample of securities that collectively has an investment profile similar 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. Replication is an indexing strategy in which a fund invests in substantially all of the securities in its index in approximately the same proportions as in the index. The Fund generally will invest under normal circumstances at least 80% of its total assets in the securities of 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 and options on futures, as well as securities not included in the Index, but which is believed will help the Fund track its Index. FUND MANAGEMENT: Northern Trust Investments, Inc., a subsidiary of Northern Trust Corporation, serves as the Investment Adviser of the Fund.