Fund Description: FlexShares Emerging Markets Quality Low Volatility 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 Developed Markets ex-US Quality Low Volatility Index Fund seeks to provide investment returns that closely correspond to the price and yield performance of the Northern Trust Emerging Markets Quality Low Volatility Index. INDEX DESCRIPTION: The Northern Trust Emerging Markets Quality Low Volatility Index is designed to reflect the performance of a selection of companies that, in aggregate, possess lower overall absolute volatility characteristics relative to a broad universe of securities domiciled in emerging market countries, The Parent Index is a subset of the Northern Trust Global Index, limited to those securities domiciled in emerging markets and designated as Large/Mid cap by the Index Provider. In addition, the Index looks to select companies from the Parent Index that exhibit financial strength and stability (i.e., quality) characteristics. The Underlying Index seeks to enhance risk-return characteristics and have lower volatility relative to the broader emerging equity market. To derive the Index, the Index Provider ranks all constituents of the Parent Index using a Northern Trust proprietary quality factor. This factor is designed to measure companies based on their strength in profitability, management expertise and cash flow. FUND STRATEGY: A passive or indexing approach is usedto 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 similar to 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 (exclusive of collateral held from securities lending) in the securities of the Index and in American Depositary Receipts (ADRs) and Global Depositary Receipts (GDRs) 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 is non-diversified. FUND MANAGEMENT: Northern Trust Investments, Inc. serves as the Investment Adviser of the Fund.