Fund Description: FlexShares Credit-Scored US Corporate Bond 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 Credit-Scored US Corporate Bond Index Fund seeks investment results that correspond generally to the price and yield performance, before fees and expenses, of the Northern Trust Credit-Scored US Corporate Bond Index. INDEX DESCRIPTION: The Northern Trust Credit-Scored US Corporate Bond Index reflects the performance of a portfolio of US-dollar denominated bonds of companies that are considered by the Index Provider to have higher credit quality, lower risk of default and the potential for higher yield, price appreciation and liquidity relative to the universe of securities comprising the Northern Trust US Investment-Grade Corporate Bond Index (the Parent Index), pursuant to the Index’s index methodology. The Index is designed to outperform the Parent Index on a risk-adjusted basis, as measured by a combination of yield return and price appreciation. Securities included in the Index are component securities of the Parent Index. The Index begins with the Parent Index and then follows a rules-based methodology to select and calculate optimal weights for securities in the Index based on liquidity and security issuers’ fundamental factors. In order to be eligible for inclusion in the Index, a bond must have $500 million or greater outstanding principal at the time of index rebalance and be issued by the top 80% of issuers represented in the Parent Index based on the issuers’ respective total outstanding market capitalization of debt. The Parent Index is market capitalization-weighted based on total outstanding debt issuance and is comprised of US dollar denominated, investment grade bonds. 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., an indirect subsidiary of Northern Trust Corporation, serves as the Investment Adviser of the Fund.