UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number 811-5344
William Blair Funds
(Exact name of registrant as specified in charter)
150 North Riverside Plaza, Chicago, IL | 60606 | |
(Address of principal executive offices) | (Zip Code) |
Stephanie G. Braming, Principal Executive Officer
William Blair Funds
150 North Riverside Plaza, Chicago, IL 60606
(Name and address of agent for service)
Registrant’s telephone number, including area code: 312-236-1600
Date of fiscal year end: December 31
Date of reporting period: December 31, 2021
Item 1. December 31, 2021 Annual Reports transmitted to shareholders.
December 31, 2021 | |||
William Blair Funds Annual Report | |||
Table of Contents | |
December 31, 2021 | William Blair Funds | 1 |
The views expressed in the commentary for each Fund reflect those of the portfolio management team only through the end of the period of the report as stated on the cover. The portfolio management team’s views are subject to change at any time based on market and other conditions and should not be construed as a recommendation. Statements involving predictions, assessments, analyses, or outlook for individual securities, industries, market sectors, and/or markets involve risks and uncertainties, and there is no guarantee they will come to pass.
This report is submitted for the general information of the shareholders of William Blair Funds. It is not authorized for distribution to prospective Fund investors unless accompanied or preceded by the Fund’s prospectus. Please carefully consider a Fund’s investment objectives, risks, charges, and expenses before investing. This and other information is contained in the Fund’s prospectus, which you may obtain by calling 1-800-742-7272. Read it carefully before you invest or send money.
2 | Annual Report | December 31, 2021 |
U.S. Growth Market Review and Outlook
U.S. equity indices generally had positive returns for the full-year period ended December 31, 2021. First quarter market performance was supported by improvement in corporate earnings growth, positive economic data, robust job growth and massive stimulus distributed to U.S. households and businesses. Manufacturing activity, gross domestic product (GDP), and job growth continued to increase into the second quarter and corporations reported healthy earnings. While corporate earnings reports continued to exhibit strength in the third quarter, U.S. economic data was mixed, in part due to supply chain disruptions and rising COVID-19 cases stemming from the Delta variant.
Omicron, a new COVID-19 variant, emerged during the fourth quarter and quickly became the dominant strain across the country, resulting in some delays in the reopening of businesses and increased market volatility. While new cases in the U.S. reached record highs, data suggested that the variant has a lower risk of severe disease, easing concerns of the severity of its impact. U.S. economic data was somewhat mixed in the fourth quarter as job growth and gross domestic product (GDP) increased, while manufacturing activity slowed.
President Biden signed the $1.2 trillion bipartisan Infrastructure Investment and Jobs Act in November 2021, creating further stimulus likely to benefit U.S. companies. The Federal Open Market Committee (FOMC) voted to maintain the current federal funds target rate, however, the Fed announced plans to accelerate the tapering of its asset purchases in the near term, paving the way for potential rate increases sooner than previously expected. Persistent inflation pressures and potential rate increases, coupled with concerns regarding the sustainability of economic strength, led to the flattening of the U.S. yield curve in the fourth quarter. Amid these cross currents, corporate earnings were robust, supporting fourth quarter equity performance. The magnitude of returns varied across size and style dimensions in both the quarter and full year periods.
Despite disruptions caused by the Omicron variant, U.S. economic health is expected to persist through 2022. As the labor market continues to strengthen, consumer confidence and spending are expected to increase. However, some uncertainty remains surrounding vaccine efficacy and the spread of new COVID-19 variants. While there are early indications that labor shortages, some inflationary pressures and supply chain disruptions may be peaking, we believe that these factors are likely to remain a headwind into 2022. In addition, congressional leadership is expected to shift as Republicans appear likely to regain at least one house of Congress, creating the potential for political gridlock.
As we monitor economic developments and navigate through the business model implications of continued COVID-19 disruption, we remain focused on bottom-up, fundamental analysis. We seek to identify quality companies with superior management, high barriers to entry and differentiated products or services that we believe are underappreciated by the market. Our investment philosophy leads us to companies with durable businesses, whose stock prices are not reflective of our long-term fundamental expectations, that we believe can outperform over a market cycle.
December 31, 2021 | William Blair Funds | 3 |
U.S. Value Market Review and Outlook
The U.S. economic backdrop of 2021 was, for the most part, a disappointment which failed to meet many predictions. Earlier in the year, it was widely expected that, by the fall, business activity would be supported by: (i) an increase in labor availability, made possible by the end of many stimulus programs and a return of children to school; (ii) easing of the global supply chain shortage; (iii) a multi-trillion dollar Federal investment package; and (iv) a decrease in COVID-19 infections due to increased vaccination rates. Yet, as we know, reality played out much differently in 2021. The Labor Force Participation Rate showed little, if any, improvement in this period, and as of the date of this report remains significantly below Pre-COVID-19 levels. Similar optimism regarding the ability to source critical components fell so short that, by the end of the third quarter’s earnings season, companies that missed estimates for this reason were, in our view, largely given a pass by the market. And, after much political turmoil, the Biden administration was able to enact only a fraction of its original infrastructure and social spending goals. Lastly, of course, the fight against COVID-19 was significantly curtailed at the end of November with the discovery and subsequent rapid spread of the Omicron variant.
Despite these unexpected setbacks, equity markets held up remarkably well with most major indices posting positive performance for the year. In the small cap sector, however, the results among style indices were not even; the Russell 2000 Value Index returned 28.3%, while the Russell 2000 Growth Index returned approximately 5.0%. This is a continuation of the outperformance of small cap value shares that began in November 2020 after the announcement of effective coronavirus vaccines and the Presidential elections. Moreover, within the small cap value benchmark we saw a pronounced shift in investor preference for higher quality stocks with cheaper valuations in the back half of 2021. We attribute this shift to the Federal Reserve’s signaling in November of an upcoming pivot to a less accommodative monetary policy. In short, we are likely entering a new interest rate environment that no longer supports sky high valuations and cheap debt, particularly for money losing operations.
Entering 2022, the biggest uncertainty in our view is how the market will react to the stated intention of the U.S. Federal Reserve (the “Fed”) to raise short-term interest rates and reduce bond purchases and just how aggressive those actions will ultimately be. Given Chairman Jerome Powell’s acknowledgement that inflation is more persistent than previously thought combined with a recent CPI reading of 7%, there is reasonable concern that the Fed is “behind the curve” and may have to act more boldly than the currently anticipated three rate hikes in 2022. The fourth quarter of 2018 when the Fed’s attempt to reduce Quantitative Easing caused a 20% decline in the equity markets is still on many investors’ minds. We have also begun to wonder if raising short term rates might inadvertently cause the U.S. dollar to increase relative to other currencies, which may cap the yield on longer duration bonds, and, in turn, could potentially invert the yield curve and trigger a recession. For the moment, political risk such as increased taxes or financial regulation appears to be mollified by Congressional gridlock. This situation is, however, fluid and could change when we least expect it. While election years always have potential implications for the markets, 2022 could have an increased impact because of recent inflationary trends. In any event, 2022 is likely to be a more volatile year for investors, particularly given the upcoming mid-term elections which, in our view, are shaping up to be more acrimonious than usual.
4 | Annual Report | December 31, 2021 |
December 31, 2021 | William Blair Funds | 5 |
Growth Fund
Performance Highlights (Unaudited)
Average Annual Total Returns through 12/31/2021
Since | ||||||||||||||||||||
1 Year | 3 Year | 5 Year | 10 Year | Inception(a) | ||||||||||||||||
Class N | 22.09 | % | 29.88 | % | 23.42 | % | 17.39 | % | — | % | ||||||||||
Class I | 22.54 | 30.27 | 23.77 | 17.75 | — | |||||||||||||||
Class R6 | 22.55 | — | — | — | 25.99 | |||||||||||||||
Russell 3000® Growth Index | 25.85 | 33.21 | 24.56 | 19.39 | 28.71 | |||||||||||||||
S&P 500® Index | 28.71 | 26.07 | 18.47 | 16.55 | 22.17 |
(a) | Since inception is for the period from May 2, 2019 (Commencement of Operations) to December 31, 2021. |
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are average annual total returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272, or visit our Web site at www.williamblairfunds.com. From time to time, the investment adviser may waive fees or reimburse expenses for the Fund. Without these waivers/reimbursements, performance would be lower. Class N shares are not subject to a sales load. Class I shares are not subject to a sales load or distribution (Rule 12b-1) fees. Class R6 shares are not subject to a sales load, distribution (Rule 12b-1) fees, or sub-transfer agent fees.
The performance highlights and graph presented above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The Russell 3000® Growth Index consists of large, medium, and small capitalization companies with above average price-to-book ratios and forecasted growth rates. The index is weighted by market capitalization and large/medium/small companies make up approximately 80%/15%/5% of the index.
The S&P 500® Index indicates broad larger capitalization equity market performance.
This report identifies the Fund’s investments on December 31, 2021. These holdings are subject to change. Not all stocks in the Fund performed the same, nor is there any guarantee that these stocks will perform as well in the future. Market forecasts provided in this report may not necessarily come to pass.
Sector Diversification (Unaudited)
The sector diversification shown is based on the total long-term securities.
6 | Annual Report | December 31, 2021 |
Growth Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks | |||||||||
Information Technology—37.7% | |||||||||
* | Adobe, Inc. | 14,868 | $ | 8,431 | |||||
* | Advanced Micro Devices, Inc. | 87,556 | 12,599 | ||||||
* | Alarm.com Holdings, Inc. | 20,078 | 1,703 | ||||||
Azenta, Inc. | 24,314 | 2,507 | |||||||
Fidelity National Information Services, Inc. | 50,704 | 5,534 | |||||||
* | Grid Dynamics Holdings, Inc. | 104,816 | 3,980 | ||||||
Mastercard, Inc. | 37,742 | 13,562 | |||||||
Microsoft Corporation | 100,054 | 33,650 | |||||||
* | MongoDB, Inc. | 5,811 | 3,076 | ||||||
National Instruments Corporation | 109,329 | 4,774 | |||||||
* | Nice, Ltd.—ADR | 18,723 | 5,684 | ||||||
* | PayPal Holdings, Inc. | 46,637 | 8,795 | ||||||
* | Pure Storage, Inc. | 265,380 | 8,638 | ||||||
Texas Instruments, Inc. | 39,860 | 7,512 | |||||||
* | Verra Mobility Corporation | 253,307 | 3,909 | ||||||
* | Workday, Inc. | 22,493 | 6,145 | ||||||
130,499 | |||||||||
Consumer Discretionary—14.1% | |||||||||
* | Amazon.com, Inc. | 7,349 | 24,504 | ||||||
* | Bright Horizons Family Solutions, Inc. | 37,488 | 4,719 | ||||||
* | Burlington Stores, Inc. | 16,817 | 4,902 | ||||||
* | Etsy, Inc. | 12,750 | 2,791 | ||||||
* | Farfetch, Ltd.† | 69,638 | 2,328 | ||||||
* | Overstock.com, Inc. | 26,008 | 1,535 | ||||||
* | Revolve Group, Inc. | 41,004 | 2,298 | ||||||
* | Rush Street Interactive, Inc. | 148,723 | 2,454 | ||||||
* | Skyline Champion Corporation | 40,580 | 3,205 | ||||||
48,736 | |||||||||
Health Care—13.0% | |||||||||
Agilent Technologies, Inc. | 17,283 | 2,759 | |||||||
* | Certara, Inc. | 96,367 | 2,739 | ||||||
* | HealthEquity, Inc. | 38,970 | 1,724 | ||||||
* | Horizon Therapeutics plc† | 48,925 | 5,272 | ||||||
* | Penumbra, Inc. | 10,550 | 3,031 | ||||||
STERIS plc† | 24,526 | 5,970 | |||||||
Stryker Corporation | 32,108 | 8,586 | |||||||
UnitedHealth Group, Inc. | 21,180 | 10,636 | |||||||
Zoetis, Inc. | 16,986 | 4,145 | |||||||
44,862 | |||||||||
Communication Services—10.9% | |||||||||
* | Alphabet, Inc. Class “A” | 9,278 | 26,879 | ||||||
Warner Music Group Corporation | 92,428 | 3,991 | |||||||
* | ZipRecruiter, Inc. | 122,188 | 3,047 | ||||||
* | Zynga, Inc. | 579,927 | 3,712 | ||||||
37,629 | |||||||||
Industrials—10.3% | |||||||||
* | ACV Auctions, Inc. | 108,143 | 2,037 | ||||||
BWX Technologies, Inc. | 80,440 | 3,852 | |||||||
* | Clarivate plc† | 105,940 | 2,492 | ||||||
* | Copart, Inc. | 44,435 | 6,737 | ||||||
* | CoStar Group, Inc. | 46,214 | 3,652 |
Issuer | Shares or Principal Amount | Value | |||||||
Common Stocks—(continued) | |||||||||
Industrials—(continued) | |||||||||
* | Energy Recovery, Inc. | 133,897 | $ | 2,878 | |||||
Fortive Corporation | 60,574 | 4,621 | |||||||
* | Kornit Digital, Ltd.† | 18,765 | 2,857 | ||||||
The Brink’s Co. | 60,616 | 3,975 | |||||||
* | Trex Co., Inc. | 18,783 | 2,536 | ||||||
35,637 | |||||||||
Consumer Staples—3.7% | |||||||||
The Coca-Cola Co. | 118,071 | 6,991 | |||||||
The Estee Lauder Cos., Inc. | 15,503 | 5,739 | |||||||
12,730 | |||||||||
Financials—3.3% | |||||||||
Aon plc† | 14,741 | 4,431 | |||||||
Ares Management Corporation | 53,245 | 4,327 | |||||||
Bridge Investment Group Holdings, Inc. | 105,644 | 2,638 | |||||||
11,396 | |||||||||
Energy—2.6% | |||||||||
Cameco Corporation† | 200,443 | 4,372 | |||||||
* | Green Plains, Inc. | 72,095 | 2,506 | ||||||
New Fortress Energy, Inc. | 93,063 | 2,246 | |||||||
9,124 | |||||||||
Materials—1.5% | |||||||||
Ball Corporation | 54,516 | 5,248 | |||||||
Real Estate—1.1% | |||||||||
SBA Communications Corporation | 9,700 | 3,774 | |||||||
Total Common Stocks—98.2% (cost $172,059) | 339,635 | ||||||||
Repurchase Agreement | |||||||||
Fixed Income Clearing Corporation, 0.000% dated 12/31/21, due 1/3/22, repurchase price $2,309, collateralized by U.S. Treasury Bond, 2.875%, due 11/15/46, valued at $2,355 | $2,309 | 2,309 | |||||||
Total Repurchase Agreement—0.7% (cost $2,309) | 2,309 | ||||||||
Total Investments—98.9% (cost $174,368) | 341,944 | ||||||||
Cash and other assets, less liabilities—1.1% | 3,756 | ||||||||
Net assets—100.0% | $ | 345,700 |
ADR = American Depository Receipt
* = Non-income producing security
† = U.S. listed foreign security
See accompanying Notes to Financial Statements.
December 31, 2021 | William Blair Funds | 7 |
8 | Annual Report | December 31, 2021 |
Large Cap Growth Fund
Performance Highlights (Unaudited)
Average Annual Total Returns through 12/31/2021 | ||||||||||||||||||||
1 Year | 3 Year | 5 Year | 10 Year | Since Inception(a) | ||||||||||||||||
Class N | 28.03 | % | 33.39 | % | 26.66 | % | 20.40 | % | — | % | ||||||||||
Class I | 28.39 | 33.72 | 27.00 | 20.72 | — | |||||||||||||||
Class R6 | 28.42 | — | — | — | 29.75 | |||||||||||||||
Russell 1000® Growth Index | 27.60 | 34.08 | 25.32 | 19.79 | 29.63 |
(a) | Since inception is for the period from May 2, 2019 (Commencement of Operations) to December 31, 2021. |
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are average annual total returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272, or visit our Web site at www.williamblairfunds.com. From time to time, the investment adviser may waive fees or reimburse expenses for the Fund. Without these waivers/reimbursements, performance would be lower. Class N shares are not subject to a sales load. Class I shares are not subject to a sales load or distribution (Rule 12b-1) fees. Class R6 shares are not subject to a sales load, distribution (Rule 12b-1) fees, or sub-transfer agent fees.
The performance highlights and graph presented above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The Russell 1000® Growth Index consists of large capitalization companies with above average price-to-book ratios and forecasted growth rates.
This report identifies the Fund’s investments on December 31, 2021. These holdings are subject to change. Not all stocks in the Fund performed the same, nor is there any guarantee that these stocks will perform as well in the future. Market forecasts provided in this report may not necessarily come to pass.
Sector Diversification (Unaudited)
The sector diversification shown is based on the total long-term securities.
December 31, 2021 | William Blair Funds | 9 |
Large Cap Growth Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks | |||||||||
Information Technology—43.5% | |||||||||
Accenture plc† | 95,480 | $ | 39,581 | ||||||
* | Adobe, Inc. | 46,520 | 26,380 | ||||||
* | Advanced Micro Devices, Inc. | 244,998 | 35,255 | ||||||
* | Guidewire Software, Inc. | 122,220 | 13,876 | ||||||
Intuit, Inc. | 46,520 | 29,923 | |||||||
Lam Research Corporation | 32,050 | 23,049 | |||||||
Mastercard, Inc. | 114,820 | 41,257 | |||||||
Microsoft Corporation | 403,910 | 135,843 | |||||||
NVIDIA Corporation | 112,500 | 33,087 | |||||||
* | PayPal Holdings, Inc. | 185,880 | 35,053 | ||||||
* | salesforce.com, Inc. | 116,590 | 29,629 | ||||||
Texas Instruments, Inc. | 128,410 | 24,201 | |||||||
* | Unity Software, Inc. | 99,020 | 14,159 | ||||||
481,293 | |||||||||
Consumer Discretionary—16.1% | |||||||||
* | Amazon.com, Inc. | 26,635 | 88,810 | ||||||
* | Marriott International, Inc. | 160,350 | 26,496 | ||||||
NIKE, Inc. | 204,110 | 34,019 | |||||||
Starbucks Corporation | 245,000 | 28,658 | |||||||
177,983 | |||||||||
Communication Services—13.5% | |||||||||
* | Alphabet, Inc. Class “A” | 26,190 | 75,874 | ||||||
* | Alphabet, Inc. Class “C” | 5,640 | 16,320 | ||||||
* | Live Nation Entertainment, Inc. | 230,190 | 27,551 | ||||||
* | Netflix, Inc. | 49,620 | 29,893 | ||||||
149,638 | |||||||||
Health Care—9.7% | |||||||||
* | ABIOMED, Inc. | 54,698 | 19,646 | ||||||
Stryker Corporation | 91,830 | 24,557 | |||||||
UnitedHealth Group, Inc. | 71,720 | 36,014 | |||||||
Zoetis, Inc. | 108,520 | 26,482 | |||||||
106,699 | |||||||||
Industrials—6.4% | |||||||||
* | Copart, Inc. | 167,980 | 25,469 | ||||||
* | CoStar Group, Inc. | 67,630 | 5,345 | ||||||
Equifax, Inc. | 78,570 | 23,004 | |||||||
Fortive Corporation | 223,670 | 17,064 | |||||||
70,882 | |||||||||
Consumer Staples—5.8% | |||||||||
Costco Wholesale Corporation | 67,520 | 38,331 | |||||||
The Estee Lauder Cos., Inc. | 70,950 | 26,266 | |||||||
64,597 | |||||||||
Financials—2.9% | |||||||||
Apollo Global Management, Inc. | 448,120 | 32,457 | |||||||
Materials—1.5% | |||||||||
Linde plc† | 46,520 | 16,116 | |||||||
Total Common Stocks—99.4% (cost $713,428) | 1,099,665 |
Issuer | Principal Amount | Value | |||||||
Repurchase Agreement | |||||||||
Fixed Income Clearing Corporation, 0.000% dated 12/31/21, due 1/3/22, repurchase price $8,575, collateralized by U.S. Treasury Bond, 1.875%, due 02/15/41, valued at $8,747 | $8,575 | $ | 8,575 | ||||||
Total Repurchase Agreement—0.8% (cost $8,575) | 8,575 | ||||||||
Total Investments—100.2% (cost $722,003) | 1,108,240 | ||||||||
Liabilities, plus cash and other assets—(0.2)% | (2,220 | ) | |||||||
Net assets—100.0% | $ | 1,106,020 |
† = U.S. listed foreign security
* = Non-income producing security
See accompanying Notes to Financial Statements.
10 | Annual Report | December 31, 2021 |
December 31, 2021 | William Blair Funds | 11 |
Mid Cap Growth Fund
Performance Highlights (Unaudited)
Average Annual Total Returns through 12/31/2021 | ||||||||||||||||||||
1 Year | 3 Year | 5 Year | 10 Year | Since Inception(a) | ||||||||||||||||
Class N | 8.10 | % | 23.08 | % | 17.36 | % | 13.09 | % | — | % | ||||||||||
Class I | 8.38 | 23.36 | 17.66 | 13.38 | — | |||||||||||||||
Class R6 | 8.44 | — | — | — | 16.55 | |||||||||||||||
Russell Midcap® Growth Index | 12.73 | 27.46 | 19.83 | 16.63 | 21.30 |
(a) | Since inception is for the period from May 2, 2019 (Commencement of Operations) to December 31, 2021. |
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are average annual total returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272, or visit our Web site at www.williamblairfunds.com. Investing in medium capitalization companies involves special risks, including higher volatility and lower liquidity. Medium capitalization stocks are also more sensitive to purchase/sale transactions and changes in the issuer’s financial condition. From time to time, the investment adviser may waive fees or reimburse expenses for the Fund. Without these waivers/reimbursements, performance would be lower. Class N shares are not subject to a sales load. Class I shares are not subject to a sales load or distribution (Rule 12b-1) fees. Class R6 shares are not subject to a sales load, distribution (Rule 12b-1) fees, or sub-transfer agent fees.
The performance highlights and graph presented above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The Russell Midcap® Growth Index is an index that is constructed to provide a comprehensive and unbiased barometer of the mid-cap growth market.
This report identifies the Fund’s investments on December 31, 2021. These holdings are subject to change. Not all stocks in the Fund performed the same, nor is there any guarantee that these stocks will perform as well in the future. Market forecasts provided in this report may not necessarily come to pass.
Sector Diversification (Unaudited)
The sector diversification shown is based on the total long-term securities.
12 | Annual Report | December 31, 2021 |
Mid Cap Growth Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks | |||||||||
Information Technology—31.6% | |||||||||
* | Anaplan, Inc. | 13,935 | $ | 639 | |||||
* | Cadence Design Systems, Inc. | 12,135 | 2,261 | ||||||
Dolby Laboratories, Inc. | 6,955 | 662 | |||||||
* | Dynatrace, Inc. | 23,005 | 1,388 | ||||||
* | EPAM Systems, Inc. | 1,760 | 1,177 | ||||||
* | Euronet Worldwide, Inc. | 8,170 | 974 | ||||||
* | Guidewire Software, Inc. | 4,117 | 467 | ||||||
MKS Instruments, Inc. | 7,110 | 1,238 | |||||||
* | MongoDB, Inc. | 2,225 | 1,178 | ||||||
* | Nice, Ltd.—ADR | 3,930 | 1,193 | ||||||
* | Palo Alto Networks, Inc. | 2,345 | 1,306 | ||||||
Pegasystems, Inc. | 7,445 | 833 | |||||||
* | Pure Storage, Inc. | 50,025 | 1,628 | ||||||
* | SolarEdge Technologies, Inc. | 1,990 | 558 | ||||||
* | Teledyne Technologies, Inc. | 2,760 | 1,206 | ||||||
16,708 | |||||||||
Health Care—19.4% | |||||||||
* | 10X Genomics, Inc. | 3,455 | 515 | ||||||
* | ABIOMED, Inc. | 3,318 | 1,192 | ||||||
Agilent Technologies, Inc. | 7,405 | 1,182 | |||||||
* | Align Technology, Inc. | 1,270 | 834 | ||||||
Bio-Techne Corporation | 1,627 | 842 | |||||||
* | Charles River Laboratories International, Inc. | 2,500 | 942 | ||||||
* | Horizon Therapeutics plc† | 11,485 | 1,238 | ||||||
* | IDEXX Laboratories, Inc. | 1,420 | 935 | ||||||
* | Mettler-Toledo International, Inc. | 560 | 950 | ||||||
STERIS plc† | 3,230 | 786 | |||||||
* | Veeva Systems, Inc. | 3,210 | 820 | ||||||
10,236 | |||||||||
Industrials—16.2% | |||||||||
* | Axon Enterprise, Inc. | 4,465 | 701 | ||||||
* | Builders FirstSource, Inc. | 11,645 | 998 | ||||||
BWX Technologies, Inc. | 21,214 | 1,016 | |||||||
* | Clarivate plc† | 37,670 | 886 | ||||||
* | Copart, Inc. | 13,972 | 2,118 | ||||||
* | CoStar Group, Inc. | 19,165 | 1,515 | ||||||
Equifax, Inc. | 2,695 | 789 | |||||||
* | Generac Holdings, Inc. | 1,535 | 540 | ||||||
8,563 | |||||||||
Consumer Discretionary—12.2% | |||||||||
Advance Auto Parts, Inc. | 2,703 | 648 | |||||||
* | Aptiv plc† | 5,595 | 923 | ||||||
* | Bright Horizons Family Solutions, Inc. | 8,325 | 1,048 | ||||||
* | Burlington Stores, Inc. | 4,490 | 1,309 | ||||||
* | Chipotle Mexican Grill, Inc. | 479 | 837 | ||||||
* | Etsy, Inc. | 4,604 | 1,008 | ||||||
* | Farfetch, Ltd.† | 19,375 | 648 | ||||||
6,421 |
Issuer | Shares or Principal Amount | Value | |||||||
Common Stocks—(continued) | |||||||||
Communication Services—5.3% | |||||||||
Cable One, Inc. | 181 | $ | 319 | ||||||
* | Live Nation Entertainment, Inc. | 6,549 | 784 | ||||||
* | Take-Two Interactive Software, Inc. | 3,590 | 638 | ||||||
Warner Music Group Corporation | 24,790 | 1,070 | |||||||
2,811 | |||||||||
Materials—5.0% | |||||||||
Ball Corporation | 10,485 | 1,010 | |||||||
Vulcan Materials Co. | 7,930 | 1,646 | |||||||
2,656 | |||||||||
Financials—4.0% | |||||||||
Ares Management Corporation | 10,435 | 848 | |||||||
PacWest Bancorp | 13,910 | 628 | |||||||
Western Alliance Bancorp | 6,155 | 663 | |||||||
2,139 | |||||||||
Real Estate—3.0% | |||||||||
SBA Communications Corporation | 1,995 | 776 | |||||||
* | Zillow Group, Inc. | 12,680 | 810 | ||||||
1,586 | |||||||||
Energy—1.1% | |||||||||
New Fortress Energy, Inc. | 23,593 | 570 | |||||||
Total Common Stocks—97.8% (cost $37,472) | 51,690 | ||||||||
Repurchase Agreement | |||||||||
Fixed Income Clearing Corporation, 0.000% dated 12/31/21, due 1/3/22, repurchase price $1,232, collateralized by U.S. Treasury Bond, 2.875%, due 11/15/46, valued at $1,257 | $1,232 | 1,232 | |||||||
Total Repurchase Agreement—2.3% (cost $1,232) | 1,232 | ||||||||
Total Investments—100.1% (cost $38,704) | 52,922 | ||||||||
Liabilities, plus cash and other assets—(0.1)% | (72 | ) | |||||||
Net assets—100.0% | $ | 52,850 |
ADR = American Depository Receipt
* = Non-income producing security
† = U.S. listed foreign security
See accompanying Notes to Financial Statements.
December 31, 2021 | William Blair Funds | 13 |
14 | Annual Report | December 31, 2021 |
Small-Mid Cap Core Fund
Performance Highlights (Unaudited)
Average Annual Total Returns through 12/31/2021 | ||||||||
1 Year | Since Inception(a) | |||||||
Class I | 26.63 | % | 24.30 | % | ||||
Class R6 | 26.71 | 24.34 | ||||||
Russell 2500TM Index | 18.18 | 21.08 |
(a) | Since inception is for the period from October 1, 2019 (Commencement of Operations) to December 31, 2021. |
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are average annual total returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272, or visit our Web site at www.williamblairfunds.com. Investing in smaller and medium capitalization companies involves special risks, including higher volatility and lower liquidity. Smaller and medium capitalization stocks are also more sensitive to purchase/sale transactions and changes in the issuer’s financial condition. From time to time, the investment adviser may waive fees or reimburse expenses for the Fund. Without these waivers/reimbursements, performance would be lower. Class I shares are not subject to a sales load or distribution (Rule 12b-1) fees. Class R6 shares are not subject to a sales load, distribution (Rule 12b-1) fees, or sub-transfer agent fees.
The performance highlights and graph presented above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The Russell 2500TMIndex measures the performance of those Russell 2500 companies with above average price-to-book ratios and forecasted growth rates.
This report identifies the Fund’s investments on December 31, 2021. These holdings are subject to change. Not all stocks in the Fund performed the same, nor is there any guarantee that these stocks will perform as well in the future. Market forecasts provided in this report may not necessarily come to pass.
Sector Diversification (Unaudited)
The sector diversification shown is based on the total long-term securities.
December 31, 2021 | William Blair Funds | 15 |
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks | |||||||||
Industrials—18.6% | |||||||||
* | Axon Enterprise, Inc. | 6,557 | $ | 1,030 | |||||
* | Builders FirstSource, Inc. | 35,797 | 3,068 | ||||||
BWX Technologies, Inc. | 22,919 | 1,097 | |||||||
* | Casella Waste Systems, Inc. | 7,194 | 615 | ||||||
* | Chart Industries, Inc. | 4,539 | 724 | ||||||
Douglas Dynamics, Inc. | 12,836 | 501 | |||||||
* | Energy Recovery, Inc. | 33,917 | 729 | ||||||
* | IAA, Inc. | 16,501 | 835 | ||||||
* | Kornit Digital, Ltd.† | 6,245 | 951 | ||||||
Lincoln Electric Holdings, Inc. | 6,870 | 958 | |||||||
Luxfer Holdings plc† | 27,468 | 530 | |||||||
* | Mercury Systems, Inc. | 9,662 | 532 | ||||||
Owens Corning | 12,948 | 1,172 | |||||||
* | Stem, Inc. | 28,485 | 540 | ||||||
The Brink’s Co. | 19,785 | 1,297 | |||||||
* | Trex Co., Inc. | 9,291 | 1,255 | ||||||
* | WillScot Mobile Mini Holdings Corporation | 33,641 | 1,374 | ||||||
17,208 | |||||||||
Financials—14.9% | |||||||||
Ares Management Corporation | 18,226 | 1,481 | |||||||
East West Bancorp, Inc. | 23,562 | 1,854 | |||||||
* | Encore Capital Group, Inc. | 15,873 | 986 | ||||||
Glacier Bancorp, Inc. | 15,466 | 877 | |||||||
Hannon Armstrong Sustainable Infrastructure Capital, Inc. | 9,752 | 518 | |||||||
LPL Financial Holdings, Inc. | 6,046 | 968 | |||||||
PacWest Bancorp | 38,858 | 1,755 | |||||||
Virtu Financial, Inc. | 56,730 | 1,635 | |||||||
Voya Financial, Inc. | 11,051 | 733 | |||||||
Western Alliance Bancorp | 18,299 | 1,970 | |||||||
Wintrust Financial Corporation | 11,607 | 1,054 | |||||||
13,831 | |||||||||
Health Care—14.3% | |||||||||
* | Acadia Healthcare Co., Inc. | 14,611 | 887 | ||||||
* | Certara, Inc. | 28,593 | 813 | ||||||
Chemed Corporation | 1,375 | 727 | |||||||
* | Codexis, Inc. | 30,515 | 954 | ||||||
* | Globus Medical, Inc. | 15,484 | 1,118 | ||||||
* | Hanger, Inc. | 38,203 | 693 | ||||||
* | Horizon Therapeutics plc† | 6,828 | 736 | ||||||
* | LHC Group, Inc. | 7,421 | 1,018 | ||||||
* | Ligand Pharmaceuticals, Inc. | 5,223 | 807 | ||||||
* | Merit Medical Systems, Inc. | 22,744 | 1,417 | ||||||
Owens & Minor, Inc. | 50,281 | 2,187 | |||||||
* | Penumbra, Inc. | 3,353 | 963 | ||||||
STERIS plc† | 3,951 | 962 | |||||||
13,282 | |||||||||
Consumer Discretionary—14.0% | |||||||||
Aramark | 28,183 | 1,039 | |||||||
* | Boot Barn Holdings, Inc. | 13,352 | 1,643 | ||||||
* | Bright Horizons Family Solutions, Inc. | 5,801 | 730 | ||||||
* | Burlington Stores, Inc. | 4,635 | 1,351 | ||||||
* | Callaway Golf Co. | 22,862 | 627 | ||||||
* | Fox Factory Holding Corporation | 6,393 | 1,087 | ||||||
* | Grand Canyon Education, Inc. | 9,065 | 777 | ||||||
* | Leslie’s, Inc. | 42,200 | 999 |
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Consumer Discretionary—(continued) | |||||||||
* | National Vision Holdings, Inc. | 23,490 | $ | 1,127 | |||||
* | Overstock.com, Inc. | 12,365 | 730 | ||||||
* | Skyline Champion Corporation | 17,319 | 1,368 | ||||||
Wyndham Hotels & Resorts, Inc. | 17,190 | 1,541 | |||||||
13,019 | |||||||||
Information Technology—12.1% | |||||||||
* | Alarm.com Holdings, Inc. | 9,418 | 799 | ||||||
Azenta, Inc. | 11,327 | 1,168 | |||||||
* | Coupa Software, Inc. | 5,760 | 910 | ||||||
Entegris, Inc. | 5,425 | 752 | |||||||
* | Euronet Worldwide, Inc. | 6,711 | 800 | ||||||
* | Momentive Global, Inc. | 36,529 | 773 | ||||||
* | Nice, Ltd.—ADR | 4,223 | 1,282 | ||||||
Power Integrations, Inc. | 8,377 | 778 | |||||||
* | Pure Storage, Inc. | 37,629 | 1,225 | ||||||
* | SolarEdge Technologies, Inc. | 3,219 | 903 | ||||||
* | Verra Mobility Corporation | 80,551 | 1,243 | ||||||
* | Wolfspeed, Inc. | 5,361 | 599 | ||||||
11,232 | |||||||||
Energy—6.0% | |||||||||
Cameco Corporation | 61,491 | 1,341 | |||||||
* | Denbury, Inc. | 18,577 | 1,423 | ||||||
* | Green Plains, Inc. | 25,716 | 894 | ||||||
New Fortress Energy, Inc. | 32,541 | 785 | |||||||
Whitecap Resources, Inc. | 194,557 | 1,156 | |||||||
5,599 | |||||||||
Real Estate—4.9% | |||||||||
Acadia Realty Trust | 55,107 | 1,203 | |||||||
Americold Realty Trust | 23,611 | 774 | |||||||
Equity LifeStyle Properties, Inc. | 14,469 | 1,268 | |||||||
Healthcare Realty Trust, Inc. | 21,236 | 672 | |||||||
Pebblebrook Hotel Trust | 26,375 | 590 | |||||||
4,507 | |||||||||
Materials—4.8% | |||||||||
* | Century Aluminum Co. | 57,851 | 958 | ||||||
Crown Holdings, Inc. | 13,337 | 1,475 | |||||||
Eagle Materials, Inc. | 5,537 | 922 | |||||||
Martin Marietta Materials, Inc. | 2,400 | 1,057 | |||||||
4,412 | |||||||||
Consumer Staples—4.4% | |||||||||
Inter Parfums, Inc. | 11,213 | 1,199 | |||||||
* | Performance Food Group Co. | 25,107 | 1,152 | ||||||
Primo Water Corporation | 37,061 | 654 | |||||||
Spectrum Brands Holdings, Inc. | 10,945 | 1,113 | |||||||
4,118 | |||||||||
Communication Services—2.7% | |||||||||
Cable One, Inc. | 326 | 575 | |||||||
* | Live Nation Entertainment, Inc. | 4,881 | 584 | ||||||
* | ZipRecruiter, Inc. | 53,244 | 1,328 | ||||||
2,487 | |||||||||
Utilities—1.2% | |||||||||
IDACORP, Inc. | 9,995 | 1,133 | |||||||
Total Common Stocks—97.9% (cost $77,014) | 90,828 |
See accompanying Notes to Financial Statements.
16 | Annual Report | December 31, 2021 |
Small-Mid Cap Core Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Principal Amount | Value | |||||||
Repurchase Agreement | |||||||||
Fixed Income Clearing Corporation, 0.000% dated 12/31/21, due 1/3/22, repurchase price $2,074, collateralized by U.S. Treasury Bond, 1.875%, due 02/15/41, valued at $2,116. | $2,074 | $ | 2,074 | ||||||
Total Repurchase Agreement—2.2% (cost $2,074) | 2,074 | ||||||||
Total Investments—100.1% (cost $79,088) | 92,902 | ||||||||
Liabilities, plus cash and other assets—(0.1)% | (122 | ) | |||||||
Net assets—100.0% | $ | 92,780 |
ADR = American Depository Receipt
* = Non-income producing security
† = U.S. listed foreign security
See accompanying Notes to Financial Statements.
December 31, 2021 | William Blair Funds | 17 |
18 | Annual Report | December 31, 2021 |
Small-Mid Cap Growth Fund
Performance Highlights (Unaudited)
Average Annual Total Returns through 12/31/2021 | ||||||||||||||||||||
1 Year | 3 Year | 5 Year | 10 Year | Since Inception(a) | ||||||||||||||||
Class N | 8.27 | % | 23.08 | % | 18.56 | % | 16.18 | % | — | % | ||||||||||
Class I | 8.56 | 23.40 | 18.86 | 16.46 | — | |||||||||||||||
Class R6 | 8.60 | — | — | — | 18.02 | |||||||||||||||
Russell 2500TM Growth Index | 5.04 | 25.09 | 17.65 | 15.75 | 19.46 |
(a) | Since inception is for the period from May 2, 2019 (Commencement of Operations) to December 31, 2021. |
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are average annual total returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272, or visit our Web site at www.williamblairfunds.com. Investing in smaller and medium capitalization companies involves special risks, including higher volatility and lower liquidity. Smaller and medium capitalization stocks are also more sensitive to purchase/sale transactions and changes in the issuer’s financial condition. From time to time, the investment adviser may waive fees or reimburse expenses for the Fund. Without these waivers/reimbursements, performance would be lower. Class N shares are not subject to a sales load. Class I shares are not subject to a sales load or distribution (Rule 12b-1) fees. Class R6 shares are not subject to a sales load, distribution (Rule 12b-1) fees, or sub-transfer agent fees.
The performance highlights and graph presented above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The Russell 2500TM Growth Index measures the performance of those Russell 2500 companies with above average price-to-book ratios and forecasted growth rates.
This report identifies the Fund’s investments on December 31, 2021. These holdings are subject to change. Not all stocks in the Fund performed the same, nor is there any guarantee that these stocks will perform as well in the future. Market forecasts provided in this report may not necessarily come to pass.
Sector Diversification (Unaudited)
The sector diversification shown is based on the total long-term securities.
December 31, 2021 | William Blair Funds | 19 |
Small-Mid Cap Growth Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks | |||||||||
Health Care—24.2% | |||||||||
* | 10X Genomics, Inc. | 211,671 | $ | 31,531 | |||||
* | ABIOMED, Inc. | 151,370 | 54,368 | ||||||
* | Acadia Healthcare Co., Inc. | 685,883 | 41,633 | ||||||
* | Amedisys, Inc. | 154,831 | 25,064 | ||||||
Bio-Techne Corporation | 116,420 | 60,229 | |||||||
* | Blueprint Medicines Corporation | 311,450 | 33,359 | ||||||
* | Certara, Inc. | 803,747 | 22,843 | ||||||
* | Charles River Laboratories International, Inc. | 171,060 | 64,452 | ||||||
Chemed Corporation | 81,006 | 42,855 | |||||||
* | Halozyme Therapeutics, Inc. | 906,582 | 36,454 | ||||||
* | HealthEquity, Inc. | 649,002 | 28,712 | ||||||
* | Horizon Therapeutics plc† | 402,872 | 43,413 | ||||||
* | Insmed, Inc. | 836,323 | 22,781 | ||||||
* | Inspire Medical Systems, Inc. | 154,813 | 35,616 | ||||||
* | Ligand Pharmaceuticals, Inc. | 218,003 | 33,673 | ||||||
* | Merit Medical Systems, Inc. | 471,671 | 29,385 | ||||||
* | Pacific Biosciences of California, Inc. | 954,997 | 19,539 | ||||||
* | Penumbra, Inc. | 209,509 | 60,196 | ||||||
* | Twist Bioscience Corporation | 288,199 | 22,304 | ||||||
* | Veracyte, Inc. | 709,092 | 29,215 | ||||||
737,622 | |||||||||
Information Technology—23.9% | |||||||||
* | Alarm.com Holdings, Inc. | 477,079 | 40,461 | ||||||
* | Avalara, Inc. | 303,734 | 39,215 | ||||||
Azenta, Inc. | 612,308 | 63,135 | |||||||
* | Dynatrace, Inc. | 1,044,086 | 63,010 | ||||||
Entegris, Inc. | 295,358 | 40,931 | |||||||
* | Euronet Worldwide, Inc. | 466,183 | 55,555 | ||||||
* | Guidewire Software, Inc. | 332,324 | 37,729 | ||||||
MKS Instruments, Inc. | 125,125 | 21,793 | |||||||
National Instruments Corporation | 859,285 | 37,525 | |||||||
* | Nice, Ltd.—ADR | 199,066 | 60,436 | ||||||
* | Novanta, Inc.† | 185,388 | 32,689 | ||||||
Pegasystems, Inc. | 226,837 | 25,365 | |||||||
* | Pure Storage, Inc. | 2,337,103 | 76,073 | ||||||
* | SolarEdge Technologies, Inc. | 165,659 | 46,479 | ||||||
* | Varonis Systems, Inc. | 631,870 | 30,823 | ||||||
* | Wolfspeed, Inc. | 209,332 | 23,397 | ||||||
* | Workiva, Inc. | 267,321 | 34,883 | ||||||
729,499 | |||||||||
Industrials—16.9% | |||||||||
* | Axon Enterprise, Inc. | 336,650 | 52,854 | ||||||
* | Builders FirstSource, Inc. | 1,199,575 | 102,816 | ||||||
BWX Technologies, Inc. | 1,133,009 | 54,248 | |||||||
* | Chart Industries, Inc. | 124,588 | 19,871 | ||||||
HEICO Corporation | 185,592 | 23,852 | |||||||
* | Kornit Digital, Ltd.† | 146,182 | 22,256 | ||||||
Lincoln Electric Holdings, Inc. | 180,934 | 25,235 | |||||||
* | Mercury Systems, Inc. | 588,177 | 32,385 | ||||||
Ritchie Bros Auctioneers, Inc. | 568,824 | 34,818 | |||||||
* | Stem, Inc. | 832,464 | 15,792 | ||||||
The Brink’s Co. | 792,507 | 51,965 | |||||||
* | Trex Co., Inc. | 590,280 | 79,705 | ||||||
515,797 |
Issuer | Shares or Principal Amount | Value | |||||||
Common Stocks—(continued) | |||||||||
Consumer Discretionary—12.8% | |||||||||
* | Bright Horizons Family Solutions, Inc. | 353,833 | $ | 44,540 | |||||
* | Burlington Stores, Inc. | 182,674 | 53,251 | ||||||
* | Fox Factory Holding Corporation | 297,605 | 50,623 | ||||||
* | Helen of Troy, Ltd.† | 94,527 | 23,109 | ||||||
* | Leslie’s, Inc. | 2,090,330 | 49,457 | ||||||
* | National Vision Holdings, Inc. | 783,766 | 37,613 | ||||||
* | Overstock.com, Inc. | 460,837 | 27,194 | ||||||
* | Revolve Group, Inc. | 653,335 | 36,613 | ||||||
Wyndham Hotels & Resorts, Inc. | 740,767 | 66,410 | |||||||
388,810 | |||||||||
Financials—4.6% | |||||||||
Ares Management Corporation | 551,640 | 44,832 | |||||||
Virtu Financial, Inc. | 1,770,602 | 51,046 | |||||||
Western Alliance Bancorp | 416,731 | 44,861 | |||||||
140,739 | |||||||||
Materials—4.2% | |||||||||
Crown Holdings, Inc. | 627,293 | 69,391 | |||||||
Martin Marietta Materials, Inc. | 129,619 | 57,100 | |||||||
126,491 | |||||||||
Energy—3.5% | |||||||||
Cameco Corporation | 2,129,446 | 46,443 | |||||||
* | Denbury, Inc. | 554,769 | 42,490 | ||||||
New Fortress Energy, Inc. | 739,908 | 17,862 | |||||||
106,795 | |||||||||
Communication Services—3.3% | |||||||||
Cable One, Inc. | 20,203 | 35,627 | |||||||
* | Live Nation Entertainment, Inc. | 269,620 | 32,271 | ||||||
* | Zynga, Inc. | 5,220,372 | 33,410 | ||||||
101,308 | |||||||||
Consumer Staples—2.8% | |||||||||
* | Celsius Holdings, Inc. | 311,800 | 23,251 | ||||||
* | Performance Food Group Co. | 907,221 | 41,632 | ||||||
* | The Beauty Health Co. | 900,076 | 21,746 | ||||||
86,629 | |||||||||
Real Estate—1.1% | |||||||||
FirstService Corporation | 174,013 | 34,188 | |||||||
Total Common Stocks—97.3% (cost $2,188,910) | 2,967,878 | ||||||||
Repurchase Agreement | |||||||||
Fixed Income Clearing Corporation, 0.000% dated 12/31/21, due 1/3/22, repurchase price $81,541, collateralized by U.S. Treasury Bond, 1.875% - 3.125%, due 02/15/41 - 08/15/44, valued at $83,172 | $81,541 | 81,541 | |||||||
Total Repurchase Agreement—2.7% (cost $81,541) | 81,541 | ||||||||
Total Investments—100.0% (cost $2,270,451) | 3,049,419 | ||||||||
Liabilities, plus cash and other assets—(0.0)% | (1,357 | ) | |||||||
Net assets—100.0% | $ | 3,048,062 |
ADR = American Depository Receipt
* = Non-income producing security
† = U.S. listed foreign security
See accompanying Notes to Financial Statements.
20 | Annual Report | December 31, 2021 |
December 31, 2021 | William Blair Funds | 21 |
Small Cap Growth Fund
Performance Highlights (Unaudited)
Average Annual Total Returns through 12/31/2021 | ||||||||||||||||||||
1 Year | 3 Year | 5 Year | 10 Year | Since Inception(a) | ||||||||||||||||
Class N | 12.91 | % | 24.06 | % | 18.81 | % | 17.42 | % | — | % | ||||||||||
Class I | 13.22 | 24.37 | 19.11 | 17.71 | — | |||||||||||||||
Class R6 | 13.31 | — | — | — | 19.69 | |||||||||||||||
Russell 2000® Growth Index | 2.83 | 21.17 | 14.53 | 14.14 | 16.08 |
(a) | Since inception is for the period from May 2, 2019 (Commencement of Operations) to December 31, 2021. |
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are average annual total returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272, or visit our Web site at www.williamblairfunds.com. Investing in smaller companies involves special risks, including higher volatility and lower liquidity. Smaller capitalization stocks are also more sensitive to purchase/sale transactions and changes in the issuer’s financial condition. From time to time, the investment adviser may waive fees or reimburse expenses for the Fund. Without these waivers/reimbursements, performance would be lower. Class N shares are not subject to a sales load. Class I shares are not subject to a sales load or distribution (Rule 12b-1) fees. Class R6 shares are not subject to a sales load, distribution (Rule 12b-1) fees, or sub-transfer agent fees.
The performance highlights and graph presented above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The Russell 2000® Growth Index is an unmanaged composite of the smallest 2000 stocks of the Russell 3000® Growth Index.
This report identifies the Fund’s investments on December 31, 2021. These holdings are subject to change. Not all stocks in the Fund performed the same, nor is there any guarantee that these stocks will perform as well in the future. Market forecasts provided in this report may not necessarily come to pass.
Sector Diversification (Unaudited)
The sector diversification shown is based on the total long-term securities.
22 | Annual Report | December 31, 2021 |
Small Cap Growth Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks | |||||||||
Industrials—22.6% | |||||||||
* | ACV Auctions, Inc. | 306,860 | $ | 5,781 | |||||
Albany International Corporation | 104,175 | 9,214 | |||||||
* | Builders FirstSource, Inc. | 179,400 | 15,376 | ||||||
BWX Technologies, Inc. | 237,609 | 11,377 | |||||||
* | Casella Waste Systems, Inc. | 139,700 | 11,933 | ||||||
Douglas Dynamics, Inc. | 172,263 | 6,729 | |||||||
* | Ducommun, Inc. | 265,426 | 12,414 | ||||||
* | Energy Recovery, Inc. | 377,306 | 8,108 | ||||||
* | IAA, Inc. | 145,070 | 7,344 | ||||||
* | Kornit Digital, Ltd.† | 61,490 | 9,362 | ||||||
Lincoln Electric Holdings, Inc. | 51,340 | 7,160 | |||||||
Luxfer Holdings plc† | 489,236 | 9,447 | |||||||
* | Mercury Systems, Inc. | 96,596 | 5,319 | ||||||
* | Montrose Environmental Group, Inc. | 175,548 | 12,378 | ||||||
Ritchie Bros Auctioneers, Inc. | 145,965 | 8,935 | |||||||
* | Stem, Inc. | 284,556 | 5,398 | ||||||
The Brink’s Co. | 211,486 | 13,867 | |||||||
160,142 | |||||||||
Health Care—22.5% | |||||||||
* | Acadia Healthcare Co., Inc. | 136,529 | 8,287 | ||||||
* | Aerie Pharmaceuticals, Inc. | 531,771 | 3,733 | ||||||
* | Amicus Therapeutics, Inc. | 728,630 | 8,416 | ||||||
* | Axogen, Inc. | 468,734 | 4,392 | ||||||
* | Blueprint Medicines Corporation | 70,740 | 7,577 | ||||||
* | Butterfly Network, Inc. | 297,959 | 1,993 | ||||||
* | Certara, Inc. | 273,903 | 7,784 | ||||||
* | Codexis, Inc. | 295,331 | 9,235 | ||||||
* | CryoLife, Inc. | 275,362 | 5,604 | ||||||
* | Halozyme Therapeutics, Inc. | 201,780 | 8,114 | ||||||
* | Hanger, Inc. | 439,000 | 7,959 | ||||||
* | Health Catalyst, Inc. | 236,018 | 9,351 | ||||||
* | HealthEquity, Inc. | 100,475 | 4,445 | ||||||
* | Insmed, Inc. | 254,920 | 6,944 | ||||||
* | Inspire Medical Systems, Inc. | 39,700 | 9,133 | ||||||
* | LHC Group, Inc. | 59,313 | 8,140 | ||||||
* | Ligand Pharmaceuticals, Inc. | 69,848 | 10,789 | ||||||
* | Merit Medical Systems, Inc. | 177,900 | 11,083 | ||||||
* | Pacific Biosciences of California, Inc. | 251,040 | 5,136 | ||||||
* | Twist Bioscience Corporation | 62,446 | 4,833 | ||||||
US Physical Therapy, Inc. | 54,207 | 5,180 | |||||||
* | Veracyte, Inc. | 150,440 | 6,198 | ||||||
* | Vericel Corporation | 131,640 | 5,173 | ||||||
159,499 | |||||||||
Information Technology—22.2% | |||||||||
* | Alarm.com Holdings, Inc. | 98,500 | 8,354 | ||||||
American Software, Inc. | 275,220 | 7,202 | |||||||
Azenta, Inc. | 141,695 | 14,610 | |||||||
* | BTRS Holdings, Inc. | 348,940 | 2,729 | ||||||
Computer Services, Inc. | 112,269 | 5,973 | |||||||
* | Euronet Worldwide, Inc. | 60,600 | 7,222 | ||||||
* | Grid Dynamics Holdings, Inc. | 341,635 | 12,972 | ||||||
* | LiveRamp Holdings, Inc. | 157,010 | 7,529 | ||||||
* | Novanta, Inc.† | 39,400 | 6,947 |
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Information Technology—(continued) | |||||||||
* | PDF Solutions, Inc. | 323,189 | $ | 10,274 | |||||
Power Integrations, Inc. | 58,210 | 5,407 | |||||||
* | PROS Holdings, Inc. | 193,130 | 6,661 | ||||||
* | Pure Storage, Inc. | 441,446 | 14,369 | ||||||
* | SiTime Corporation | 24,115 | 7,054 | ||||||
* | Upland Software, Inc. | 173,130 | 3,106 | ||||||
* | Varonis Systems, Inc. | 140,800 | 6,868 | ||||||
* | Verra Mobility Corporation | 724,609 | 11,181 | ||||||
* | Vertex, Inc. | 251,873 | 3,997 | ||||||
* | WNS Holdings, Ltd.—ADR | 93,732 | 8,269 | ||||||
* | Workiva, Inc. | 54,630 | 7,129 | ||||||
157,853 | |||||||||
Consumer Discretionary—9.3% | |||||||||
* | Boot Barn Holdings, Inc. | 91,833 | 11,300 | ||||||
* | National Vision Holdings, Inc. | 195,286 | 9,372 | ||||||
* | Overstock.com, Inc. | 126,560 | 7,468 | ||||||
* | Revolve Group, Inc. | 149,367 | 8,371 | ||||||
* | Rush Street Interactive, Inc. | 300,590 | 4,960 | ||||||
* | Skyline Champion Corporation | 142,680 | 11,269 | ||||||
* | The Cheesecake Factory, Inc. | 168,950 | 6,614 | ||||||
Winmark Corporation | 28,360 | 7,041 | |||||||
66,395 | |||||||||
Consumer Staples—4.7% | |||||||||
* | Celsius Holdings, Inc. | 79,740 | 5,946 | ||||||
* | Performance Food Group Co. | 162,980 | 7,479 | ||||||
* | The Beauty Health Co. | 559,120 | 13,509 | ||||||
* | Vital Farms, Inc. | 346,850 | 6,264 | ||||||
33,198 | |||||||||
Communication Services—4.3% | |||||||||
* | Gogo, Inc. | 651,620 | 8,816 | ||||||
* | QuinStreet, Inc. | 267,785 | 4,871 | ||||||
* | Ziff Davis Inc | 86,593 | 9,600 | ||||||
* | ZipRecruiter, Inc. | 290,440 | 7,244 | ||||||
30,531 | |||||||||
Energy—4.2% | |||||||||
Cameco Corporation | 474,910 | 10,358 | |||||||
* | Denbury, Inc. | 92,979 | 7,121 | ||||||
* | Green Plains, Inc. | 205,670 | 7,149 | ||||||
Whitecap Resources, Inc. | 923,850 | 5,488 | |||||||
30,116 | |||||||||
Financials—3.3% | |||||||||
* | Encore Capital Group, Inc. | 152,113 | 9,448 | ||||||
* | Open Lending Corporation | 175,007 | 3,934 | ||||||
PacWest Bancorp | 219,990 | 9,937 | |||||||
23,319 | |||||||||
Real Estate—2.7% | |||||||||
Colliers International Group, Inc. | 69,938 | 10,396 | |||||||
FirstService Corporation | 43,427 | 8,532 | |||||||
18,928 |
See accompanying Notes to Financial Statements.
December 31, 2021 | William Blair Funds | 23 |
Small Cap Growth Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Shares or Principal Amount | Value | |||||||
Common Stocks—(continued) | |||||||||
Materials—2.2% | |||||||||
* | Century Aluminum Co. | 365,079 | $ | 6,045 | |||||
Orion Engineered Carbons S.A.† | 528,697 | 9,707 | |||||||
15,752 | |||||||||
Total Common Stocks—98.0% (cost $520,355) | 695,733 | ||||||||
Repurchase Agreement | |||||||||
Fixed Income Clearing Corporation, 0.000% dated 12/31/21, due 1/3/22, repurchase price $2,303, collateralized by U.S. Treasury Bond, 2.875%, due 11/15/46, valued at $2,349. | $ | 2,303 | 2,303 | ||||||
Total Repurchase Agreement—0.3% (cost $2,303) | 2,303 | ||||||||
Total Investments—98.3% (cost $522,658) | 698,036 | ||||||||
Cash and other assets, less liabilities—1.7% | 12,042 | ||||||||
Net assets—100.0% | $ | 710,078 |
ADR = American Depository Receipt
* = Non-income producing security
† = U.S. listed foreign security
See accompanying Notes to Financial Statements.
24 | Annual Report | December 31, 2021 |
December 31, 2021 | William Blair Funds | 25 |
Small Cap Value Fund
Performance Highlights (Unaudited)
Average Annual Total Returns through 12/31/2021 | ||||||||||||||||||||||||
2-Month Period(b) | 1 Year | 3 Year | 5 Year | 10 Year | Since Inception(a) | |||||||||||||||||||
Class N | 4.24 | % | — | % | — | % | — | % | — | % | 8.59 | % | ||||||||||||
Class I | 4.31 | 29.49 | 18.86 | 10.33 | 13.03 | — | ||||||||||||||||||
Class R6 | 4.33 | — | — | — | — | 8.77 | ||||||||||||||||||
Russell 2000® | ||||||||||||||||||||||||
Value Index | 0.52 | 28.27 | 17.99 | 9.07 | 12.03 | 7.39 |
(a) | Since inception is for the period from July 17, 2021 (Commencement of Operations) to December 31, 2021. |
(b) | For the period from November 1, 2021 to December 31, 2021. |
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are average annual total returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272, or visit our Web site at www.williamblairfunds.com. Investing in smaller companies involves special risks, including higher volatility and lower liquidity. Smaller capitalization stocks are also more sensitive to purchase/sale transactions and changes in the issuer’s financial condition. From time to time, the investment adviser may waive fees or reimburse expenses for the Fund. Without these waivers/reimbursements, performance would be lower. Class N shares are not subject to a sales load. Class I shares are not subject to a sales load or distribution (Rule 12b-1) fees. Class R6 shares are not subject to a sales load, distribution (Rule 12b-1) fees, or sub-transfer agent fees.
The performance highlights and graph presented above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The Russell 2000® Value Index consists of small-capitalization companies with below average price-to-book ratios and forecasted growth rates.
This report identifies the Fund’s investments on December 31, 2021. These holdings are subject to change. Not all stocks in the Fund performed the same, nor is there any guarantee that these stocks will perform as well in the future. Market forecasts provided in this report may not necessarily come to pass.
Sector Diversification (Unaudited)
The sector diversification shown is based on the total long-term securities.
26 | Annual Report | December 31, 2021 |
Small Cap Value Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks | |||||||||
Financials—21.4% | |||||||||
Ameris Bancorp | 408,786 | $ | 20,308 | ||||||
Argo Group International Holdings, Ltd.† . | 447,327 | 25,994 | |||||||
Atlantic Union Bankshares Corporation | 556,827 | 20,764 | |||||||
Banc of California, Inc. | 1,120,286 | 21,980 | |||||||
Berkshire Hills Bancorp, Inc. | 724,800 | 20,606 | |||||||
Compass Diversified Holdings | 731,440 | 22,367 | |||||||
ConnectOne Bancorp, Inc. | 902,924 | 29,535 | |||||||
Dime Community Bancshares, Inc. | 639,816 | 22,496 | |||||||
Eastern Bankshares, Inc. | 1,125,554 | 22,702 | |||||||
Enterprise Financial Services Corporation . | 421,984 | 19,871 | |||||||
First Bancorp | 401,457 | 18,355 | |||||||
First Merchants Corporation | 498,629 | 20,888 | |||||||
MGIC Investment Corporation | 1,419,547 | 20,470 | |||||||
Pacific Premier Bancorp, Inc. | 523,063 | 20,938 | |||||||
PJT Partners, Inc. | 300,812 | 22,287 | |||||||
* | PRA Group, Inc. | 575,405 | 28,891 | ||||||
Seacoast Banking Corporation of Florida | 585,875 | 20,734 | |||||||
Simmons First National Corporation | 697,149 | 20,622 | |||||||
* | Texas Capital Bancshares, Inc. | 388,196 | 23,389 | ||||||
Veritex Holdings, Inc. | 508,660 | 20,235 | |||||||
443,432 | |||||||||
Industrials—18.6% | |||||||||
ABM Industries, Inc. | 490,823 | 20,050 | |||||||
Albany International Corporation | 260,480 | 23,040 | |||||||
Astec Industries, Inc. | 231,793 | 16,056 | |||||||
Brady Corporation | 211,752 | 11,413 | |||||||
* | CBIZ, Inc. | 602,658 | 23,576 | ||||||
Deluxe Corporation | 625,391 | 20,081 | |||||||
GrafTech International, Ltd. | 1,849,081 | 21,875 | |||||||
Granite Construction, Inc. | 472,699 | 18,294 | |||||||
* | Great Lakes Dredge & Dock Corporation | 1,321,261 | 20,770 | ||||||
* | Harsco Corporation | 1,066,483 | 17,821 | ||||||
Hillenbrand, Inc. | 454,968 | 23,654 | |||||||
* | Hub Group, Inc. | 303,302 | 25,550 | ||||||
ICF International, Inc. | 223,189 | 22,888 | |||||||
Kaman Corporation | 469,977 | 20,280 | |||||||
* | KAR Auction Services, Inc. | 1,285,907 | 20,086 | ||||||
Marten Transport, Ltd. | 928,554 | 15,934 | |||||||
MillerKnoll, Inc. | 530,172 | 20,777 | |||||||
* | PGT Innovations, Inc. | 361,894 | 8,139 | ||||||
* | SP Plus Corporation | 476,894 | 13,458 | ||||||
Werner Enterprises, Inc. | 422,310 | 20,127 | |||||||
383,869 | |||||||||
Information Technology—14.8% | |||||||||
Advanced Energy Industries, Inc. | 169,984 | 15,479 | |||||||
AudioCodes, Ltd.† | 341,187 | 11,853 | |||||||
Belden, Inc. | 521,158 | 34,256 | |||||||
Benchmark Electronics, Inc. | 742,503 | 20,122 | |||||||
* | Cognyte Software, Ltd.† | 980,824 | 15,370 | ||||||
* | Conduent, Inc. | 3,304,446 | 17,646 | ||||||
CSG Systems International, Inc. | 404,727 | 23,320 | |||||||
* | Knowles Corporation | 1,024,556 | 23,923 | ||||||
Kulicke & Soffa Industries, Inc. | 325,000 | 19,675 | |||||||
Methode Electronics, Inc. | 521,671 | 25,651 | |||||||
* | NetScout Systems, Inc. | 687,802 | 22,752 | ||||||
Progress Software Corporation | 497,428 | 24,011 |
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Information Technology—(continued) | |||||||||
* | Tower Semiconductor, Ltd.† | 818,210 | $ | 32,467 | |||||
* | Verint Systems, Inc. | 384,849 | 20,208 | ||||||
306,733 | |||||||||
Consumer Discretionary—12.6% | |||||||||
* | Adient plc† | 437,069 | 20,927 | ||||||
* | Bloomin’ Brands, Inc. | 1,089,616 | 22,860 | ||||||
Cracker Barrel Old Country Store, Inc. | 134,370 | 17,285 | |||||||
* | Designer Brands, Inc. | 1,730,347 | 24,588 | ||||||
* | El Pollo Loco Holdings, Inc. | 790,397 | 11,216 | ||||||
La-Z-Boy, Inc. | 389,817 | 14,154 | |||||||
Oxford Industries, Inc. | 295,908 | 30,041 | |||||||
Standard Motor Products, Inc. | 510,645 | 26,753 | |||||||
* | Taylor Morrison Home Corporation | 587,557 | 20,541 | ||||||
* | Tri Pointe Homes, Inc. | 746,678 | 20,825 | ||||||
* | Universal Electronics, Inc. | 328,523 | 13,387 | ||||||
* | Urban Outfitters, Inc. | 510,755 | 14,996 | ||||||
Winnebago Industries, Inc. | 303,554 | 22,742 | |||||||
260,315 | |||||||||
Real Estate—7.7% | |||||||||
Brandywine Realty Trust | 997,111 | 13,381 | |||||||
CatchMark Timber Trust, Inc. | 1,248,675 | 10,876 | |||||||
Empire State Realty Trust, Inc. | 1,575,955 | 14,026 | |||||||
Four Corners Property Trust, Inc. | 559,742 | 16,462 | |||||||
Kite Realty Group Trust | 1,210,857 | 26,372 | |||||||
Pebblebrook Hotel Trust | 726,463 | 16,251 | |||||||
Physicians Realty Trust | 797,795 | 15,023 | |||||||
Retail Opportunity Investments Corporation | 416,329 | 8,160 | |||||||
* | Sunstone Hotel Investors, Inc. | 1,307,303 | 15,335 | ||||||
UMH Properties, Inc. | 848,742 | 23,196 | |||||||
159,082 | |||||||||
Health Care—6.4% | |||||||||
* | ANI Pharmaceuticals, Inc. | 229,821 | 10,590 | ||||||
* | Hanger, Inc. | 877,581 | 15,911 | ||||||
* | Lantheus Holdings, Inc. | 1,117,220 | 32,276 | ||||||
* | ModivCare, Inc. | 128,863 | 19,109 | ||||||
* | NextGen Healthcare, Inc. | 568,063 | 10,106 | ||||||
* | NuVasive, Inc. | 73,081 | 3,835 | ||||||
Owens & Minor, Inc. | 534,549 | 23,253 | |||||||
The Ensign Group, Inc. | 211,721 | 17,776 | |||||||
132,856 | |||||||||
Materials—5.8% | |||||||||
Greif, Inc. | 313,730 | 18,940 | |||||||
Kaiser Aluminum Corporation | 202,682 | 19,040 | |||||||
Materion Corporation | 277,024 | 25,469 | |||||||
Minerals Technologies, Inc. | 247,981 | 18,140 | |||||||
Myers Industries, Inc. | 863,472 | 17,278 | |||||||
* | Orion Engineered Carbons S.A.† | 1,185,561 | 21,767 | ||||||
120,634 | |||||||||
Consumer Staples—5.0% | |||||||||
Cal-Maine Foods, Inc. | 519,931 | 19,232 | |||||||
* | Central Garden & Pet Co. | 384,838 | 18,414 | ||||||
Edgewell Personal Care Co. | 487,993 | 22,306 | |||||||
* | Landec Corporation | 195,741 | 2,173 |
See accompanying Notes to Financial Statements.
December 31, 2021 | William Blair Funds | 27 |
Small Cap Value Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Shares or Principal Amount | Value | |||||||
Common Stocks—(continued) | |||||||||
Consumer Staples—(continued) | |||||||||
Spectrum Brands Holdings, Inc. | 232,556 | $ | 23,656 | ||||||
* | TreeHouse Foods, Inc. | 459,046 | 18,605 | ||||||
104,386 | |||||||||
Energy—2.5% | |||||||||
* | Dril-Quip, Inc. | 485,194 | 9,548 | ||||||
* | Earthstone Energy, Inc. | 825,844 | 9,035 | ||||||
* | Expro Group Holdings N.V.† | 536,245 | 7,695 | ||||||
Matador Resources Co. | 695,115 | 25,664 | |||||||
51,942 | |||||||||
Communication Services—2.0% | |||||||||
John Wiley & Sons, Inc. | 417,907 | 23,934 | |||||||
Telephone and Data Systems, Inc. | 831,023 | 16,745 | |||||||
40,679 | |||||||||
Utilities—1.6% | |||||||||
NorthWestern Corporation | 299,472 | 17,118 | |||||||
Spire, Inc. | 248,110 | 16,182 | |||||||
33,300 | |||||||||
Total Common Stocks—98.4% (cost $1,605,480) | 2,037,228 | ||||||||
Repurchase Agreement | |||||||||
Fixed Income Clearing Corporation, 0.000% dated 12/31/21, due 1/3/22, repurchase price $34,495, collateralized by U.S. Treasury Bond, 2.875% - 3.125%, due 08/15/44 - 11/15/46, valued at $35,185. | $34,495 | 34,495 | |||||||
Total Repurchase Agreement—1.7% (cost $34,495) | 34,495 | ||||||||
Total Investments—100.1% (cost $1,639,975) | 2,071,723 | ||||||||
Liabilities, plus cash and other assets—(0.1)% | (2,325 | ) | |||||||
Net assets—100.0% | $ | 2,069,398 |
* = Non-income producing security
† = U.S. listed foreign security
See accompanying Notes to Financial Statements.
28 | Annual Report | December 31, 2021 |
Global Markets Review and Outlook
Global equities advanced in the fourth quarter of 2021 to close out a strong calendar year despite heightened concerns surrounding rising coronavirus cases, higher inflation, and global supply chain disruptions (the MSCI ACWI IMI gained +6.10% for the quarter and +18.22% for the year). Volatility picked up in December as the new and highly infectious Omicron variant weighed on investor sentiment. Developed markets meaningfully outperformed emerging markets driven by strength within the US and weakness within China.
US equities rallied +9.25% for the quarter and +25.62% for the year (as measured by the MSCI USA IMI index) as strong corporate earnings overshadowed a slowdown in economic activity. A handful of mega-cap technology companies that have remained resilient throughout the pandemic accounted for a significant portion of equity market outperformance. Investor sentiment was further bolstered as President Biden signed the long awaited $1.2 trillion bipartisan infrastructure bill into law. The bill emphasizes the need to upgrade roads and bridges in the US, while also seeking to address climate change. From a monetary policy perspective, the U.S. Federal Reserve Bank announced an accelerated taper pace amid higher than expected inflation. Specifically, the central bank will double the pace at which it tapers bond purchases to $30 billion a month and projected three quarter-point interest rate increases in 2022, another three in 2023, and two more in 2024.
European equities advanced +5.24% for the quarter and +16.13% for the year (as measured by the MSCI Europe IMI Index) even as several major countries reintroduced lockdown measures amid a spike in new coronavirus cases. Austria took a stricter stance as the country reimposed a full lockdown for three weeks and announced a legal requirement for the population over the age of 14 to be vaccinated by February 2022. In Germany, coalition talks concluded, and Olaf Scholz of the German Social Democrats will become the country’s next chancellor, replacing Angela Merkel.
Emerging markets declined -0.98% for the quarter and -0.28% for the year (as measured by the MSCI Emerging Markets IMI Index) primarily due to weakness within China, Russia, and Turkey. Chinese equities declined in the fourth quarter to close out an egregious year of underperformance relative to global equities (-6.15% for the quarter and -21.21% for the year, as measured by the MSCI China IMI Index). In Turkey, the Lira plunged in the fourth quarter as the central bank cut its key interest rates for a third time to boost economic growth despite rising inflation. Conversely, Taiwan remained resilient (+9.16% for the quarter and +27.71% for year, as measured by the MSCI Taiwan IMI Index) primarily due to strength within semiconductor related names.
December 31, 2021 | William Blair Funds | 29 |
30 | Annual Report | December 31, 2021 |
Global Leaders Fund
Performance Highlights (Unaudited)
Average Annual Total Returns through 12/31/2021 | ||||||||||||||||||||
1 Year | 3 Year | 5 Year | 10 Year | Since Inception(a) | ||||||||||||||||
Class N | 16.55 | % | 26.34 | % | 19.25 | % | 13.84 | % | — | % | ||||||||||
Class I | 16.78 | 26.66 | 19.55 | 14.15 | — | |||||||||||||||
Class R6 | 16.90 | 26.74 | 19.62 | — | 13.76 | |||||||||||||||
MSCI ACW IMI (net) | 18.22 | 20.20 | 14.12 | 11.84 | 11.26 |
(a) | Since inception is for the period from December 19, 2012 (Commencement of Operations) to December 31, 2021. |
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are average annual total returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272, or visit our Web site at www.williamblairfunds.com. Investing in smaller and medium capitalization companies involves special risks, including higher volatility and lower liquidity. Smaller and medium capitalization stocks are also more sensitive to purchase/sale transactions and changes in the issuer’s financial condition. International investing involves special risk considerations, including currency fluctuations, lower liquidity, economic and political risk. From time to time, the investment adviser may waive fees or reimburse expenses for the Fund. Without these waivers/reimbursements, performance would be lower. Class N shares are not subject to a sales load. Class I shares are not subject to a sales load or distribution (Rule 12b-1) fees. Class R6 shares are not subject to a sales load, distribution (Rule 12b-1) fees, or sub-transfer agent fees.
The performance highlights and graph presented above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The Morgan Stanley Capital International (MSCI) All Country World (ACW) Investable Market Index (IMI) (net) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market of developed and emerging markets. This index approximates the minimum possible dividend reinvestment by deducting for the highest possible withholding tax rates of those markets.
This report identifies the Fund’s investments on December 31, 2021. These holdings are subject to change. Not all stocks in the Fund performed the same, nor is there any guarantee that these stocks will perform as well in the future. Market forecasts provided in this report may not necessarily come to pass.
Sector Diversification (Unaudited)
The sector diversification shown is based on the total long-term securities.
December 31, 2021 | William Blair Funds | 31 |
Global Leaders Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks | |||||||||
Western Hemisphere—51.4% | |||||||||
Canada—1.3% | |||||||||
* | Lululemon Athletica, Inc. (Textiles, apparel & luxury goods) | 4,872 | $ | 1,907 | |||||
United States—50.1% | |||||||||
* | Adobe, Inc. (Software) | 3,116 | 1,767 | ||||||
* | Align Technology, Inc. (Health care equipment & supplies) | 2,177 | 1,431 | ||||||
* | Alphabet, Inc. Class “A” (Interactive Media & Services) | 1,554 | 4,502 | ||||||
* | Amazon.com, Inc. (Internet & direct marketing retail) | 1,095 | 3,651 | ||||||
* | Autodesk, Inc. (Software) | 6,944 | 1,953 | ||||||
BlackRock, Inc. (Capital markets) | 2,247 | 2,057 | |||||||
* | Charles River Laboratories International, Inc. (Life sciences tools & services) | 6,580 | 2,479 | ||||||
* | CoStar Group, Inc. (Professional services) | 19,603 | 1,549 | ||||||
Ecolab, Inc. (Chemicals) | 5,353 | 1,256 | |||||||
* | Edwards Lifesciences Corporation (Health care equipment & supplies) | 14,938 | 1,935 | ||||||
Fidelity National Information Services, Inc. (IT services) | 7,406 | 808 | |||||||
* | IDEXX Laboratories, Inc. (Health care equipment & supplies) | 3,098 | 2,040 | ||||||
Intercontinental Exchange, Inc. (Capital markets) | 14,499 | 1,983 | |||||||
* | Intuitive Surgical, Inc. (Health care equipment & supplies) | 4,824 | 1,733 | ||||||
Mastercard, Inc. Class “A” (IT services) | 10,112 | 3,634 | |||||||
* | Meta Platforms, Inc. Class “A” (Interactive Media & Services) | 9,933 | 3,341 | ||||||
Microsoft Corporation (Software) | 14,335 | 4,821 | |||||||
NextEra Energy, Inc. (Electric utilities) | 18,836 | 1,759 | |||||||
NIKE, Inc. Class “B” (Textiles, apparel & luxury goods) | 13,887 | 2,315 | |||||||
* | PayPal Holdings, Inc. (IT services) | 10,161 | 1,916 | ||||||
Prologis, Inc. (Equity REIT) | 9,309 | 1,567 | |||||||
Roper Technologies, Inc. (Industrial conglomerates) | 3,333 | 1,639 | |||||||
* | salesforce.com, Inc. (Software) | 12,018 | 3,054 | ||||||
* | Synopsys, Inc. (Software) | 5,963 | 2,197 | ||||||
The Estee Lauder Cos., Inc. Class “A” (Personal products) | 5,800 | 2,147 | |||||||
Thermo Fisher Scientific, Inc. (Life sciences tools & services) | 3,784 | 2,525 | |||||||
* | Ulta Beauty, Inc. (Specialty retail) | 5,435 | 2,241 | ||||||
Union Pacific Corporation (Road & rail) | 9,524 | 2,400 | |||||||
UnitedHealth Group, Inc. (Health care providers & services) | 4,740 | 2,380 | |||||||
* | Veeva Systems, Inc. Class “A” (Health care technology) | 2,944 | 752 | ||||||
* | Workday, Inc. Class “A” (Software) | 7,734 | 2,113 | ||||||
Zoetis, Inc. (Pharmaceuticals) | 8,648 | 2,110 | |||||||
72,055 |
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Europe—23.3% | |||||||||
Denmark—3.2% | |||||||||
DSV A/S (Air freight & logistics) | 9,732 | $ | 2,276 | ||||||
Novo Nordisk A/S Class “B” (Pharmaceuticals) | 20,676 | 2,326 | |||||||
4,602 | |||||||||
France—3.8% | |||||||||
* | Airbus SE (Aerospace & defense) | 23,825 | 3,048 | ||||||
LVMH Moet Hennessy Louis Vuitton SE (Textiles, apparel & luxury goods) | 2,910 | 2,408 | |||||||
5,456 | |||||||||
Germany—3.9% | |||||||||
Infineon Technologies AG (Semiconductors & semiconductor equipment) | 63,777 | 2,960 | |||||||
MTU Aero Engines AG (Aerospace & defense) | 8,634 | 1,763 | |||||||
Rational AG (Machinery) | 867 | 889 | |||||||
5,612 | |||||||||
Ireland—2.4% | |||||||||
* | Aptiv plc (Auto components)† | 12,733 | 2,100 | ||||||
* | Ryanair Holdings plc—ADR (Airlines) | 13,540 | 1,386 | ||||||
3,486 | |||||||||
Netherlands—1.4% | |||||||||
* | Adyen N.V. (IT services) | 748 | 1,969 | ||||||
Sweden—5.4% | |||||||||
Atlas Copco AB Class “A” (Machinery) | 39,337 | 2,725 | |||||||
Evolution AB (Hotels, restaurants & leisure) | 5,116 | 728 | |||||||
Hexagon AB Class “B” (Electronic equipment, instruments & components) | 191,364 | 3,042 | |||||||
Indutrade AB (Machinery) | 40,723 | 1,249 | |||||||
7,744 | |||||||||
Switzerland—3.2% | |||||||||
Lonza Group AG (Life sciences tools & services) | 2,726 | 2,278 | |||||||
Partners Group Holding AG (Capital markets) | 1,383 | 2,296 | |||||||
4,574 | |||||||||
Emerging Asia—6.5% | |||||||||
China—1.8% | |||||||||
Shenzhou International Group Holdings, Ltd. (Textiles, apparel & luxury goods) | 47,300 | 909 | |||||||
Tencent Holdings, Ltd. (Interactive Media & Services) | 29,900 | 1,752 | |||||||
2,661 | |||||||||
India—2.5% | |||||||||
HDFC Bank, Ltd.—ADR (Banks) | 27,378 | 1,781 | |||||||
Reliance Industries, Ltd. (Oil, gas & consumable fuels) | 56,015 | 1,785 | |||||||
3,566 | |||||||||
Taiwan—2.2% | |||||||||
Taiwan Semiconductor Manufacturing Co., Ltd.—ADR (Semiconductors & semiconductor equipment) | 26,139 | 3,145 |
See accompanying Notes to Financial Statements.
32 | Annual Report | December 31, 2021 |
Global Leaders Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Asia—5.7% | |||||||||
Australia—3.9% | |||||||||
Aristocrat Leisure, Ltd. (Hotels, restaurants & leisure) | 65,719 | $ | 2,083 | ||||||
* | Atlassian Corporation plc Class “A” (Software)† | 5,952 | 2,270 | ||||||
CSL, Ltd. (Biotechnology) | 6,235 | 1,319 | |||||||
5,672 | |||||||||
Hong Kong—1.2% | |||||||||
AIA Group, Ltd. (Insurance) | 164,400 | 1,657 | |||||||
New Zealand—0.6% | |||||||||
Fisher & Paykel Healthcare Corp., Ltd. (Health care equipment & supplies) | 38,151 | 856 | |||||||
United Kingdom—4.4% | |||||||||
* | Compass Group plc (Hotels, restaurants & leisure) | 116,559 | 2,605 | ||||||
Experian plc (Professional services) | 40,350 | 1,983 | |||||||
Halma plc (Electronic equipment, instruments & components) | 15,208 | 659 | |||||||
Rentokil Initial plc (Commercial services & supplies) | 141,189 | 1,116 | |||||||
6,363 | |||||||||
Japan—4.2% | |||||||||
Daikin Industries, Ltd. (Building products) | 7,700 | 1,747 | |||||||
Keyence Corporation (Electronic equipment, instruments & components) | 3,300 | 2,074 | |||||||
Nihon M&A Center Holdings, Inc. (Professional services) | 56,400 | 1,383 | |||||||
SMC Corporation (Machinery) | 1,200 | 809 | |||||||
6,013 | |||||||||
Emerging Latin America—1.9% | |||||||||
Argentina—1.9% | |||||||||
* | Globant S.A. (IT services)† | 5,592 | 1,756 | ||||||
* | MercadoLibre, Inc. (Internet & direct marketing retail) | 777 | 1,047 | ||||||
2,803 | |||||||||
Total Common Stocks—97.4% (cost $71,505) | 140,141 |
Issuer | Principal Amount | Value | |||||||
Repurchase Agreement | |||||||||
Fixed Income Clearing Corporation, 0.000% dated 12/31/21, due 1/3/22, repurchase price $3,694, collateralized by U.S. Treasury Bond, 3.125%, due 08/15/44, valued at $3,768 | $3,694 | $ | 3,694 | ||||||
Total Repurchase Agreement—2.6% (cost $3,694) | 3,694 | ||||||||
Total Investments—100.0% (cost $75,199) | 143,835 | ||||||||
Liabilities, plus cash and other assets—(0.0)% | (53 | ) | |||||||
Net assets—100.0% | $ | 143,782 |
ADR = American Depository Receipt
REIT = Real Estate Investment Trust
* = Non-income producing security
† = U.S. listed foreign security
At December 31, 2021, the Fund’s Portfolio of Investments includes the following industry categories (as a percentage of long-term investments):
Information Technology | 28.7 | % | ||
Industrials | 18.5 | % | ||
Health Care | 17.2 | % | ||
Consumer Discretionary | 15.7 | % | ||
Financials | 7.0 | % | ||
Communication Services | 6.8 | % | ||
Consumer Staples | 1.5 | % | ||
Energy | 1.3 | % | ||
Utilities | 1.3 | % | ||
Real Estate | 1.1 | % | ||
Materials | 0.9 | % | ||
Total | 100.0 | % |
At December 31, 2021, the Fund’s Portfolio of Investments includes the following currency categories (as a percentage of long-term investments):
U.S. Dollar | 62.4 | % | ||
Euro | 9.3 | % | ||
Swedish Krona | 5.5 | % | ||
British Pound Sterling | 4.5 | % | ||
Japanese Yen | 4.3 | % | ||
Danish Krone | 3.3 | % | ||
Swiss Franc | 3.3 | % | ||
Hong Kong Dollar | 3.1 | % | ||
Australian Dollar | 2.4 | % | ||
Indian Rupee | 1.3 | % | ||
All Other Currencies | 0.6 | % | ||
Total | 100.0 | % |
See accompanying Notes to Financial Statements.
December 31, 2021 | William Blair Funds | 33 |
34 | Annual Report | December 31, 2021 |
International Leaders Fund
Performance Highlights (Unaudited)
Average Annual Total Returns through 12/31/2021 | ||||||||||||||||
1 Year | 3 Year | 5 Year | Since Inception | |||||||||||||
Class N(a) | 9.93 | % | 22.26 | % | 15.64 | % | 11.46 | % | ||||||||
Class I(a) | 10.17 | 22.54 | 15.95 | 11.73 | ||||||||||||
MSCI ACW Ex-U.S. IMI (net)(a) | 8.53 | 13.62 | 9.83 | 7.24 | ||||||||||||
Class R6(b) | 10.22 | 22.62 | 16.01 | 11.83 | ||||||||||||
MSCI ACW Ex-U.S. IMI (net)(b) | 8.53 | 13.62 | 9.83 | 6.98 |
(a) | Since inception is for the period from August 16, 2012 (Commencement of Operations) to December 31, 2021. |
(b) | Since inception is for the period from November 2, 2012 (Commencement of Operations) to December 31, 2021. |
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are average annual total returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272, or visit our Web site at www.williamblairfunds.com. Investing in smaller and medium capitalization companies involves special risks, including higher volatility and lower liquidity. Smaller and medium capitalization stocks are also more sensitive to purchase/sale transactions and changes in the issuer’s financial condition. International investing involves special risk considerations, including currency fluctuations, lower liquidity, economic and political risk. From time to time the investment adviser may waive fees or reimburse expenses for the Fund. Without these waivers/reimbursements, performance would be lower. Class N shares are not subject to a sales load. Class I shares are not subject to a sales load or distribution (Rule 12b-1) fees. Class R6 shares are not subject to a sales load, distribution (Rule 12b-1) fees, or sub-transfer agent fees.
The performance highlights presented above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The Morgan Stanley Capital International (MSCI) All Country World (ACW) Ex-U.S. Investable Market Index (IMI) (net) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the United States. This index approximates the minimum possible dividend reinvestment by deducting for the highest possible withholding tax rates of those markets.
This report identifies the Fund’s investments on December 31, 2021. These holdings are subject to change. Not all stocks in the Fund performed the same, nor is there any guarantee that these stocks will perform as well in the future. Market forecasts provided in this report may not necessarily come to pass.
Sector Diversification (Unaudited)
The sector diversification shown is based on the total long-term securities.
December 31, 2021 | William Blair Funds | 35 |
International Leaders Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks | |||||||||
Europe, Mid-East—55.3% | |||||||||
Denmark—6.7% | |||||||||
Chr Hansen Holding A/S (Chemicals) | 108,923 | $ | 8,594 | ||||||
Coloplast A/S Class “B” (Health care equipment & supplies) | 109,768 | 19,342 | |||||||
DSV A/S (Air freight & logistics) | 78,615 | 18,384 | |||||||
Novo Nordisk A/S Class “B” (Pharmaceuticals) | 263,534 | 29,654 | |||||||
Orsted A/S (Electric utilities) | 93,071 | 11,900 | |||||||
87,874 | |||||||||
Finland—1.1% | |||||||||
Neste Oyj (Oil, gas & consumable fuels) | 290,614 | 14,346 | |||||||
France—12.6% | |||||||||
* | Airbus SE (Aerospace & defense) | 289,756 | 37,066 | ||||||
L’Oreal S.A. (Personal products) | 45,772 | 21,728 | |||||||
LVMH Moet Hennessy Louis Vuitton SE (Textiles, apparel & luxury goods) | 54,766 | 45,329 | |||||||
Safran S.A. (Aerospace & defense) | 212,145 | 26,003 | |||||||
Sartorius Stedim Biotech (Life sciences tools & services) | 34,658 | 19,035 | |||||||
Teleperformance (Professional services) | 33,801 | 15,085 | |||||||
164,246 | |||||||||
Germany—3.7% | |||||||||
Infineon Technologies AG (Semiconductors & semiconductor equipment) | 664,581 | 30,840 | |||||||
Rational AG (Machinery) | 17,273 | 17,707 | |||||||
48,547 | |||||||||
Ireland—4.9% | |||||||||
* | ICON plc (Life sciences tools & services)† | 59,488 | �� | 18,424 | |||||
Kingspan Group plc (Building products) | 231,593 | 27,685 | |||||||
* | Ryanair Holdings plc—ADR (Airlines) | 180,896 | 18,511 | ||||||
64,620 | |||||||||
Israel—0.8% | |||||||||
* | Wix.com, Ltd. (IT services)† | 69,241 | 10,925 | ||||||
Netherlands—4.7% | |||||||||
* | Adyen N.V. (IT services) | 9,812 | 25,822 | ||||||
ASML Holding N.V. (Semiconductors & semiconductor equipment) | 43,646 | 35,116 | |||||||
60,938 | |||||||||
Norway—1.3% | |||||||||
TOMRA Systems ASA (Commercial services & supplies) | 231,117 | 16,560 | |||||||
Spain—1.7% | |||||||||
* | Amadeus IT Group S.A. (IT services) | 326,927 | 22,198 | ||||||
Sweden—7.9% | |||||||||
Atlas Copco AB Class “A” (Machinery) | 426,804 | 29,558 | |||||||
EQT AB (Capital markets) | 228,132 | 12,446 | |||||||
Hexagon AB Class “B” (Electronic equipment, instruments & components) | 1,880,998 | 29,903 | |||||||
Indutrade AB (Machinery) | 419,403 | 12,866 | |||||||
Nibe Industrier AB Class “B” (Building products) | 1,203,795 | 18,218 | |||||||
102,991 |
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Europe, Mid-East—(continued) | |||||||||
Switzerland—9.9% | |||||||||
Lonza Group AG (Life sciences tools & services) | 40,354 | $ | 33,729 | ||||||
Partners Group Holding AG (Capital markets) | 16,647 | 27,632 | |||||||
Sika AG (Chemicals) | 54,320 | 22,665 | |||||||
Straumann Holding AG (Health care equipment & supplies) | 21,067 | 44,784 | |||||||
128,810 | |||||||||
United Kingdom—12.7% | |||||||||
Ashtead Group plc (Trading companies & distributors) | 389,857 | 31,355 | |||||||
* | Compass Group plc (Hotels, restaurants & leisure) | 707,215 | 15,804 | ||||||
Experian plc (Professional services) | 539,640 | 26,529 | |||||||
Halma plc (Electronic equipment, instruments & components) | 328,837 | 14,243 | |||||||
London Stock Exchange Group plc (Capital markets) | 198,277 | 18,599 | |||||||
Rentokil Initial plc (Commercial services & supplies) | 1,743,649 | 13,783 | |||||||
Segro plc (Equity REIT) | 1,175,189 | 22,850 | |||||||
Spirax-Sarco Engineering plc (Machinery) | 79,215 | 17,209 | |||||||
* | Trainline plc (Hotels, restaurants & leisure) | 1,308,328 | 4,941 | ||||||
165,313 | |||||||||
Emerging Asia—12.1% | |||||||||
China—4.3% | |||||||||
* | Alibaba Group Holding, Ltd. (Internet & direct marketing retail) | 1,011,556 | 15,425 | ||||||
Foshan Haitian Flavouring & Food Co., Ltd. Class “A” (Food products) | 516,872 | 8,524 | |||||||
Tencent Holdings, Ltd. (Interactive Media & Services) | 391,600 | 22,941 | |||||||
* | Wuxi Biologics Cayman, Inc. (Life sciences tools & services) | 856,500 | 10,166 | ||||||
57,056 | |||||||||
India—4.2% | |||||||||
Housing Development Finance Corporation, Ltd. (Thrifts & mortgage finance) | 679,296 | 23,641 | |||||||
Reliance Industries, Ltd. (Oil, gas & consumable fuels) | 970,380 | 30,918 | |||||||
54,559 | |||||||||
Indonesia—0.9% | |||||||||
* | Sea, Ltd.—ADR (Entertainment) | 51,362 | 11,490 | ||||||
Taiwan—2.7% | |||||||||
Taiwan Semiconductor Manufacturing Co., Ltd. (Semiconductors & semiconductor equipment) | 1,595,000 | 35,455 | |||||||
Japan—8.8% | |||||||||
Asahi Intecc Co., Ltd. (Health care equipment & supplies) | 241,000 | 5,177 | |||||||
Daikin Industries, Ltd. (Building products) | 104,600 | 23,724 |
See accompanying Notes to Financial Statements.
36 | Annual Report | December 31, 2021 |
International Leaders Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Shares or Principal Amount | Value | |||||||
Common Stocks—(continued) | |||||||||
Japan—(continued) | |||||||||
Hoya Corporation (Health care equipment & supplies) | 154,700 | $ | 23,011 | ||||||
Keyence Corporation (Electronic equipment, instruments & components) | 49,000 | 30,789 | |||||||
M3, Inc. (Health care technology) | 95,800 | 4,825 | |||||||
Nihon M&A Center Holdings, Inc. (Professional services) | 400,400 | 9,819 | |||||||
SMC Corporation (Machinery) | 26,500 | 17,875 | |||||||
115,220 | |||||||||
Asia—5.2% | |||||||||
Australia—3.1% | |||||||||
Aristocrat Leisure, Ltd. (Hotels, restaurants & leisure) | 745,572 | 23,634 | |||||||
* | Atlassian Corporation plc Class “A” (Software)† | 43,813 | 16,706 | ||||||
40,340 | |||||||||
Hong Kong—1.4% | |||||||||
AIA Group, Ltd. (Insurance) | 1,841,600 | 18,563 | |||||||
New Zealand—0.7% | |||||||||
Fisher & Paykel Healthcare Corp., Ltd. (Health care equipment & supplies) | 406,310 | 9,117 | |||||||
Canada—3.4% | |||||||||
Canadian National Railway Co. (Road & rail) | 233,936 | 28,735 | |||||||
* | Lululemon Athletica, Inc. (Textiles, apparel & luxury goods) | 40,245 | 15,754 | ||||||
44,489 | |||||||||
Emerging Latin America—1.0% | |||||||||
Argentina—1.0% | |||||||||
* | MercadoLibre, Inc. (Internet & direct marketing retail) | 9,482 | 12,786 | ||||||
Total Common Stocks—98.5% (cost $859,902) | 1,286,443 | ||||||||
Repurchase Agreement | |||||||||
Fixed Income Clearing Corporation, 0.000% dated 12/31/21, due 1/3/22, repurchase price $21,283, collateralized by U.S. Treasury Bond, 1.875%, due 02/15/41, valued at $21,709 | $21,283 | 21,283 | |||||||
Total Repurchase Agreement—1.6% (cost $21,283) | 21,283 | ||||||||
Total Investments—100.1% (cost $881,185) | 1,307,726 | ||||||||
Liabilities, plus cash and other assets—(0.1)% | (996 | ) | |||||||
Net assets—100.0% | $ | 1,306,730 |
ADR = American Depository Receipt
REIT = Real Estate Investment Trust
* = Non-income producing security
† = U.S. listed foreign security
At December 31, 2021, the Fund’s Portfolio of Investments includes the following industry categories (as a percentage of long-term investments):
Industrials | 31.6 | % | ||
Information Technology | 19.6 | % | ||
Health Care | 16.9 | % | ||
Consumer Discretionary | 10.4 | % | ||
Financials | 7.8 | % | ||
Energy | 3.5 | % | ||
Communication Services | 2.7 | % | ||
Materials | 2.4 | % | ||
Consumer Staples | 2.4 | % | ||
Real Estate | 1.8 | % | ||
Utilities | 0.9 | % | ||
Total | 100.0 | % |
At December 31, 2021, the Fund’s Portfolio of Investments includes the following currency categories (as a percentage of long-term investments):
Euro | 26.3 | % | ||
British Pound Sterling | 12.9 | % | ||
Swiss Franc | 10.0 | % | ||
Japanese Yen | 9.0 | % | ||
U.S. Dollar | 8.1 | % | ||
Swedish Krona | 8.0 | % | ||
Danish Krone | 6.8 | % | ||
Hong Kong Dollar | 5.2 | % | ||
Indian Rupee | 4.2 | % | ||
New Taiwan Dollar | 2.8 | % | ||
Canadian Dollar | 2.2 | % | ||
Australian Dollar | 1.8 | % | ||
Norwegian Krone | 1.3 | % | ||
All Other Currencies | 1.4 | % | ||
Total | 100.0 | % |
See accompanying Notes to Financial Statements.
December 31, 2021 | William Blair Funds | 37 |
38 | Annual Report | December 31, 2021 |
International Growth Fund
Performance Highlights (Unaudited)
Average Annual Total Returns through 12/31/2021 | ||||||||||||||||||||
1 Year | 3 Year | 5 Year | 10 Year | Since Inception(a) | ||||||||||||||||
Class N | 8.68 | % | 23.06 | % | 14.56 | % | 10.49 | % | — | % | ||||||||||
Class I | 9.01 | 23.42 | 14.90 | 10.82 | — | |||||||||||||||
Class R6 | 9.09 | — | — | — | 19.56 | |||||||||||||||
MSCI ACW Ex-U.S. IMI (net) | 8.53 | 13.62 | 9.83 | 7.57 | 10.14 |
(a) | Since inception is for the period from May 2, 2019 (Commencement of Operations) to December 31, 2021. |
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are average annual total returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272, or visit our Web site at www.williamblairfunds.com. Investing in smaller and medium capitalization companies involves special risks, including higher volatility and lower liquidity. Smaller and medium capitalization stocks are also more sensitive to purchase/sale transactions and changes in the issuer’s financial condition. International investing involves special risk considerations, including currency fluctuations, lower liquidity, economic and political risk. From time to time, the investment adviser may waive fees or reimburse expenses for the Fund. Without these waivers/reimbursements, performance would be lower. Class N shares are not subject to a sales load. Class I shares are not subject to a sales load or distribution (Rule 12b-1) fees. Class R6 shares are not subject to a sales load, distribution (Rule 12b-1) fees, or sub-transfer agent fees.
The performance highlights and graph presented above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The Morgan Stanley Capital International (MSCI) All Country World (ACW) Ex-U.S. Investable Market Index (IMI) (net) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the United States. This index approximates the minimum possible dividend reinvestment by deducting for the highest possible withholding tax rates of those markets.
This report identifies the Fund’s investments on December 31, 2021. These holdings are subject to change. Not all stocks in the Fund performed the same, nor is there any guarantee that these stocks will perform as well in the future. Market forecasts provided in this report may not necessarily come to pass.
Sector Diversification (Unaudited)
The sector diversification shown is based on the total long-term securities.
December 31, 2021 | William Blair Funds | 39 |
International Growth Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks | |||||||||
Europe, Mid-East—48.5% | |||||||||
Belgium—0.3% | |||||||||
Warehouses De Pauw CVA (Equity REIT) | 149,957 | $ | 7,201 | ||||||
Denmark—3.9% | |||||||||
Chr Hansen Holding A/S (Chemicals) | 60,079 | 4,740 | |||||||
Coloplast A/S Class “B” (Health care equipment & supplies) | 52,335 | 9,222 | |||||||
DSV A/S (Air freight & logistics) | 161,106 | 37,674 | |||||||
* | Genmab A/S (Biotechnology) | 33,049 | 13,306 | ||||||
Netcompany Group A/S (Software) | 45,868 | 4,947 | |||||||
Orsted A/S (Electric utilities) | 75,563 | 9,662 | |||||||
Royal Unibrew A/S (Beverages) | 34,758 | 3,923 | |||||||
83,474 | |||||||||
Finland—0.7% | |||||||||
Neste Oyj (Oil, gas & consumable fuels) | 315,613 | 15,580 | |||||||
France—10.7% | |||||||||
* | Airbus SE (Aerospace & defense) | 275,833 | 35,285 | ||||||
Dassault Systemes SE (Software) | 345,536 | 20,578 | |||||||
Hermes International (Textiles, apparel & luxury goods) | 7,222 | 12,629 | |||||||
Kering S.A. (Textiles, apparel & luxury goods) | 32,380 | 26,060 | |||||||
L’Oreal S.A. (Personal products) | 48,340 | 22,947 | |||||||
LVMH Moet Hennessy Louis Vuitton SE (Textiles, apparel & luxury goods) | 44,487 | 36,822 | |||||||
Safran S.A. (Aerospace & defense) | 169,347 | 20,757 | |||||||
Sartorius Stedim Biotech (Life sciences tools & services) | 30,415 | 16,704 | |||||||
Teleperformance (Professional services) | 64,549 | 28,808 | |||||||
* | Worldline S.A. (IT services) | 128,377 | 7,163 | ||||||
227,753 | |||||||||
Germany—5.3% | |||||||||
Carl Zeiss Meditec AG (Health care equipment & supplies) | 49,486 | 10,414 | |||||||
CompuGroup Medical SE & Co. KgaA (Health care technology) | 52,130 | 4,223 | |||||||
* | CTS Eventim AG & Co. KGaA (Entertainment) | 105,296 | 7,716 | ||||||
* | HelloFresh SE (Food & staples retailing) | 124,292 | 9,557 | ||||||
* | Hypoport SE (Diversified financial services) | 5,785 | 3,366 | ||||||
Infineon Technologies AG (Semiconductors & semiconductor equipment) | 521,785 | 24,214 | |||||||
KION Group AG (Machinery) | 76,121 | 8,361 | |||||||
MTU Aero Engines AG (Aerospace & defense) | 110,832 | 22,637 | |||||||
Nemetschek SE (Software) | 44,274 | 5,686 | |||||||
Puma SE (Textiles, apparel & luxury goods) | 132,637 | 16,233 | |||||||
112,407 |
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Europe, Mid-East—(continued) | |||||||||
Ireland—2.6% | |||||||||
* | ICON plc (Life sciences tools & services)† | 71,795 | $ | 22,235 | |||||
Kingspan Group plc (Building products) | 158,593 | 18,959 | |||||||
* | Ryanair Holdings plc—ADR (Airlines) | 134,530 | 13,766 | ||||||
54,960 | |||||||||
Israel—1.0% | |||||||||
* | Inmode, Ltd. (Health care equipment & supplies)† | 92,143 | 6,503 | ||||||
* | Nice, Ltd.—ADR (Software) | 23,606 | 7,167 | ||||||
* | Wix.com, Ltd. (IT services)† | 41,998 | 6,627 | ||||||
20,297 | |||||||||
Italy—0.8% | |||||||||
Amplifon SpA (Health care providers & services) | 112,576 | 6,081 | |||||||
* | Brunello Cucinelli SpA (Textiles, apparel & luxury goods) | 66,186 | 4,574 | ||||||
Moncler SpA (Textiles, apparel & luxury goods) | 80,724 | 5,884 | |||||||
16,539 | |||||||||
Luxembourg—1.0% | |||||||||
Eurofins Scientific SE (Life sciences tools & services) | 124,241 | 15,390 | |||||||
Tenaris S.A. (Energy equipment & services) | 434,332 | 4,554 | |||||||
19,944 | |||||||||
Netherlands—4.3% | |||||||||
* | Adyen N.V. (IT services) | 9,205 | 24,224 | ||||||
ASML Holding N.V. (Semiconductors & semiconductor equipment) | 60,089 | 48,346 | |||||||
BE Semiconductor Industries N.V. (Semiconductors & semiconductor equipment) | 40,144 | 3,429 | |||||||
Euronext N.V. (Capital markets) | 64,477 | 6,699 | |||||||
IMCD N.V. (Trading companies & distributors) | 35,243 | 7,812 | |||||||
90,510 | |||||||||
Norway—0.7% | |||||||||
* | AutoStore Holdings, Ltd. (Machinery) | 667,950 | 2,638 | ||||||
TOMRA Systems ASA (Commercial services & supplies) | 159,074 | 11,398 | |||||||
14,036 | |||||||||
Spain—1.5% | |||||||||
* | Amadeus IT Group S.A. (IT services) | 356,919 | 24,235 | ||||||
EDP Renovaveis S.A. (Independent power & renewable electricity producers) | 318,840 | 7,949 | |||||||
32,184 |
See accompanying Notes to Financial Statements.
40 | Annual Report | December 31, 2021 |
International Growth Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Europe, Mid-East—(continued) | |||||||||
Sweden—7.9% | |||||||||
AddTech AB Class “B” (Trading companies & distributors) | 198,465 | $ | 4,744 | ||||||
Atlas Copco AB Class “A” (Machinery) | 575,706 | 39,871 | |||||||
Beijer Ref AB (Trading companies & distributors) | 292,518 | 6,406 | |||||||
* | BICO Group AB (Life sciences tools & services) | 93,226 | 2,866 | ||||||
EQT AB (Capital markets) | 225,710 | 12,314 | |||||||
Evolution AB (Hotels, restaurants & leisure) | 108,827 | 15,490 | |||||||
* | Hemnet Group AB (Interactive Media & Services) | 155,560 | 2,880 | ||||||
Hexagon AB Class “B” (Electronic equipment, instruments & components) | 1,593,895 | 25,339 | |||||||
Indutrade AB (Machinery) | 317,223 | 9,731 | |||||||
Investment AB Latour Class “B” (Industrial conglomerates) | 194,761 | 7,947 | |||||||
Lifco AB Class “B” (Industrial conglomerates) | 258,747 | 7,751 | |||||||
Nibe Industrier AB Class “B” (Building products) | 788,165 | 11,928 | |||||||
Nolato AB Class “B” (Industrial conglomerates) | 437,326 | 5,222 | |||||||
Sweco AB Class “B” (Construction & engineering) | 197,438 | 3,719 | |||||||
Thule Group AB (Leisure products) | 87,920 | 5,332 | |||||||
Vitrolife AB (Biotechnology) | 112,044 | 6,944 | |||||||
168,484 | |||||||||
Switzerland—7.8% | |||||||||
Bachem Holding AG Class “B” (Life sciences tools & services) | 5,112 | 4,017 | |||||||
Belimo Holding AG (Building products) | 8,499 | 5,410 | |||||||
Lonza Group AG (Life sciences tools & services) | 36,512 | 30,518 | |||||||
Partners Group Holding AG (Capital markets) | 16,482 | 27,359 | |||||||
Siegfried Holding AG (Life sciences tools & services) | 5,409 | 5,280 | |||||||
SIG Combibloc Group AG (Containers & packaging) | 247,915 | 6,927 | |||||||
Sika AG (Chemicals) | 94,943 | 39,615 | |||||||
Softwareone Holding AG (Electronic equipment, instruments & components) . | 122,538 | 2,657 | |||||||
Straumann Holding AG (Health care equipment & supplies) | 11,354 | 24,136 | |||||||
Tecan Group AG (Life sciences tools & services) | 12,596 | 7,679 | |||||||
VAT Group AG (Machinery) | 20,983 | 10,464 | |||||||
* | Zur Rose Group AG (Food & staples retailing) | 8,417 | 2,175 | ||||||
166,237 |
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Emerging Asia—18.1% | |||||||||
China—7.1% | |||||||||
Aier Eye Hospital Group Co., Ltd. Class “A” (Health care providers & services) | 679,112 | $ | 4,505 | ||||||
* | Alibaba Group Holding, Ltd. (Internet & direct marketing retail) | 909,884 | 13,874 | ||||||
Centre Testing International Group Co., Ltd. Class “A” (Professional services) | 1,176,700 | 4,961 | |||||||
Chacha Food Co., Ltd. Class “A” (Food products) | 372,142 | 3,583 | |||||||
Foshan Haitian Flavouring & Food Co., Ltd. Class “A” (Food products) | 342,265 | 5,645 | |||||||
Hangzhou Tigermed Consulting Co., Ltd. Class “A” (Life sciences tools & services) | 298,270 | 5,981 | |||||||
* | JD.com, Inc. Class “A” (Internet & direct marketing retail) | 264,300 | 9,287 | ||||||
Li Ning Co., Ltd. (Textiles, apparel & luxury goods) | 1,731,500 | 18,953 | |||||||
NAURA Technology Group Co., Ltd. Class “A” (Semiconductors & semiconductor equipment) | 142,413 | 7,754 | |||||||
Ping An Insurance Group Co. of China, Ltd. Class “H” (Insurance) | 2,169,500 | 15,622 | |||||||
Proya Cosmetics Co., Ltd. Class “A” (Personal products) | 141,299 | 4,618 | |||||||
Shenzhen Mindray Bio-Medical Electronics Co., Ltd. Class “A” (Health care equipment & supplies) | 103,850 | 6,205 | |||||||
Silergy Corporation (Semiconductors & semiconductor equipment) | 27,000 | 4,904 | |||||||
Tencent Holdings, Ltd. (Interactive Media & Services) | 383,500 | 22,466 | |||||||
* | Weimob, Inc. (Software) | 1,203,000 | 1,217 | ||||||
WuXi AppTec Co., Ltd. Class “A” (Life sciences tools & services) | 278,936 | 5,190 | |||||||
* | Wuxi Biologics Cayman, Inc. (Life sciences tools & services) | 1,325,000 | 15,727 | ||||||
150,492 | |||||||||
India—4.4% | |||||||||
Apollo Hospitals Enterprise, Ltd. (Health care providers & services) | 55,507 | 3,752 | |||||||
Crompton Greaves Consumer Electricals, Ltd. (Household durables) | 685,171 | 4,027 | |||||||
Dr. Lal PathLabs, Ltd. (Health care providers & services) | 126,985 | 6,519 | |||||||
Havells India, Ltd. (Electrical equipment) . | 262,791 | 4,928 | |||||||
HDFC Bank, Ltd. (Banks) | 1,015,925 | 20,241 | |||||||
Info Edge India, Ltd. (Interactive Media & Services) | 56,401 | 4,221 | |||||||
* | InterGlobe Aviation, Ltd. (Airlines) | 252,112 | 6,832 | ||||||
Pidilite Industries, Ltd. (Chemicals) | 127,617 | 4,228 | |||||||
Reliance Industries, Ltd. (Oil, gas & consumable fuels) | 1,071,915 | 34,154 | |||||||
Voltas, Ltd. (Construction & engineering) | 219,961 | 3,610 | |||||||
92,512 |
See accompanying Notes to Financial Statements.
December 31, 2021 | William Blair Funds | 41 |
International Growth Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Emerging Asia—(continued) | |||||||||
Indonesia—1.9% | |||||||||
Bank Central Asia Tbk PT (Banks) | 51,627,100 | $ | 26,443 | ||||||
* | Sea, Ltd.—ADR (Entertainment) | 66,057 | 14,778 | ||||||
41,221 | |||||||||
South Korea—0.9% | |||||||||
Kakao Corporation (Interactive Media & Services) | 110,456 | 10,453 | |||||||
Samsung SDI Co., Ltd. (Electronic equipment, instruments & components) | 17,518 | 9,653 | |||||||
20,106 | |||||||||
Taiwan—3.7% | |||||||||
�� | Airtac International Group (Machinery) | 116,713 | 4,303 | ||||||
ASMedia Technology, Inc. (Semiconductors & semiconductor equipment) | 55,000 | 3,618 | |||||||
Globalwafers Co., Ltd. (Semiconductors & semiconductor equipment) | 125,000 | 4,012 | |||||||
MediaTek, Inc. (Semiconductors & semiconductor equipment) | 661,000 | 28,431 | |||||||
momo.com, Inc. (Internet & direct marketing retail) | 65,000 | 3,818 | |||||||
Taiwan Semiconductor Manufacturing Co., Ltd.—ADR (Semiconductors & semiconductor equipment) | 277,503 | 33,386 | |||||||
77,568 | |||||||||
Thailand—0.1% | |||||||||
Carabao Group PCL Class “F” (Beverages) | 637,100 | 2,279 | |||||||
United Kingdom—12.1% | |||||||||
3i Group plc (Capital markets) | 425,833 | 8,352 | |||||||
Ashtead Group plc (Trading companies & distributors) | 502,269 | 40,396 | |||||||
AVEVA Group plc (Software) | 122,505 | 5,644 | |||||||
Big Yellow Group plc (Equity REIT) | 228,819 | 5,287 | |||||||
* | Ceres Power Holdings plc (Electrical equipment) | 161,737 | 2,181 | ||||||
* | Compass Group plc (Hotels, restaurants & leisure) | 1,081,076 | 24,159 | ||||||
Croda International plc (Chemicals) | 160,234 | 21,949 | |||||||
CVS Group plc (Health care providers & services) | 130,407 | 3,954 | |||||||
Diploma plc (Trading companies & distributors) | 114,299 | 5,220 | |||||||
Experian plc (Professional services) | 427,965 | 21,039 | |||||||
Halma plc (Electronic equipment, instruments & components) | 413,349 | 17,904 | |||||||
Intermediate Capital Group plc (Capital markets) | 329,523 | 9,786 | |||||||
Intertek Group plc (Professional services) . | 99,120 | 7,553 | |||||||
London Stock Exchange Group plc (Capital markets) | 176,658 | 16,571 | |||||||
Renishaw plc (Electronic equipment, instruments & components) | 48,840 | 3,160 |
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
United Kingdom—(continued) | |||||||||
Rentokil Initial plc (Commercial services & supplies) | 1,642,517 | $ | 12,984 | ||||||
Rotork plc (Machinery) | 1,630,705 | 7,884 | |||||||
Segro plc (Equity REIT) | 834,238 | 16,221 | |||||||
Softcat plc (IT services) | 166,720 | 4,071 | |||||||
Spirax-Sarco Engineering plc (Machinery) . | 74,675 | 16,223 | |||||||
* | Trainline plc (Hotels, restaurants & leisure) | 480,989 | 1,816 | ||||||
* | Trustpilot Group plc (Interactive Media & Services) | 870,264 | 3,856 | ||||||
256,210 | |||||||||
Japan—10.1% | |||||||||
Asahi Intecc Co., Ltd. (Health care equipment & supplies) | 227,600 | 4,889 | |||||||
* | BASE, Inc. (IT services) | 209,100 | 1,120 | ||||||
Benefit One, Inc. (Professional services) | 154,500 | 6,628 | |||||||
* | Bengo4.com, Inc. (Interactive Media & Services) | 27,000 | 1,429 | ||||||
Daikin Industries, Ltd. (Building products) | 98,800 | 22,409 | |||||||
Disco Corporation (Semiconductors & semiconductor equipment) | 9,800 | 2,995 | |||||||
Food & Life Cos., Ltd. (Hotels, restaurants & leisure) | 117,300 | 4,436 | |||||||
GMO Payment Gateway, Inc. (IT services) | 39,500 | 4,928 | |||||||
Harmonic Drive Systems, Inc. (Machinery) | 65,300 | 2,759 | |||||||
Hoya Corporation (Health care equipment & supplies) | 108,700 | 16,168 | |||||||
Keyence Corporation (Electronic equipment, instruments & components) | 42,600 | 26,768 | |||||||
M3, Inc. (Health care technology) | 164,300 | 8,274 | |||||||
MISUMI Group, Inc. (Machinery) | 167,600 | 6,877 | |||||||
MonotaRO Co., Ltd. (Trading companies & distributors) | 299,600 | 5,399 | |||||||
Nihon M&A Center Holdings, Inc. (Professional services) | 340,900 | 8,360 | |||||||
Olympus Corporation (Health care equipment & supplies) | 980,100 | 22,575 | |||||||
Omron Corporation (Electronic equipment, instruments & components) | 183,800 | 18,311 | |||||||
Rakus Co., Ltd. (Software) | 174,400 | 4,700 | |||||||
* | SHIFT, Inc. (IT services) | 26,200 | 5,435 | ||||||
SMC Corporation (Machinery) | 33,400 | 22,529 | |||||||
SMS Co., Ltd. (Professional services) | 80,000 | 3,151 | |||||||
TechnoPro Holdings, Inc. (Professional services) | 204,900 | 6,217 | |||||||
TIS, Inc. (IT services) | 279,600 | 8,325 | |||||||
214,682 |
See accompanying Notes to Financial Statements.
42 | Annual Report | December 31, 2021 |
International Growth Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Canada—3.4% | |||||||||
* | Canada Goose Holdings, Inc. (Textiles, apparel & luxury goods) | 130,233 | $ | 4,826 | |||||
Canadian National Railway Co. (Road & rail) | 292,659 | 35,949 | |||||||
Enghouse Systems, Ltd. (Software) | 53,254 | 2,039 | |||||||
* | Kinaxis, Inc. (Software) | 37,936 | 5,318 | ||||||
* | Lululemon Athletica, Inc. (Textiles, apparel & luxury goods) | 44,653 | 17,479 | ||||||
* | Nuvei Corporation (IT services) | 55,654 | 3,608 | ||||||
Toromont Industries, Ltd. (Trading companies & distributors) | 40,324 | 3,646 | |||||||
72,865 | |||||||||
Asia—3.2% | |||||||||
Australia—1.8% | |||||||||
Aristocrat Leisure, Ltd. (Hotels, restaurants & leisure) | 362,506 | 11,491 | |||||||
* | Atlassian Corporation plc Class “A” (Software)† | 51,643 | 19,691 | ||||||
Netwealth Group, Ltd. (Capital markets) | 265,930 | 3,423 | |||||||
Pro Medicus, Ltd. (Health care technology) | 87,711 | 3,984 | |||||||
38,589 | |||||||||
Hong Kong—1.4% | |||||||||
AIA Group, Ltd. (Insurance) | 2,939,600 | 29,632 | |||||||
Emerging Latin America—1.7% | |||||||||
Argentina—0.9% | |||||||||
* | Globant S.A. (IT services)† | 24,959 | 7,839 | ||||||
* | MercadoLibre, Inc. (Internet & direct marketing retail) | 8,026 | 10,822 | ||||||
18,661 | |||||||||
Brazil—0.5% | |||||||||
B3 S.A. - Brasil Bolsa Balcao (Capital markets) | 2,081,100 | 4,162 | |||||||
* | Locaweb Servicos de Internet S.A. (IT services) | 1,331,193 | 3,145 | ||||||
Notre Dame Intermedica Participacoes S.A. (Health care providers & services) | 295,100 | 3,198 | |||||||
10,505 | |||||||||
Mexico—0.2% | |||||||||
Grupo Aeroportuario del Sureste S.A.B. de C.V.—ADR (Transportation infrastructure) | 20,682 | 4,264 | |||||||
Uruguay—0.1% | |||||||||
* | Dlocal, Ltd. (IT services)† | 81,154 | 2,896 | ||||||
Emerging Europe—0.6% | |||||||||
Poland—0.2% | |||||||||
* | Allegro.eu S.A. (Internet & direct marketing retail) | 364,919 | 3,519 |
Issuer | Shares or Principal Amount | Value | |||||||
Common Stocks—(continued) | |||||||||
Emerging Europe—(continued) | |||||||||
Russia—0.4% | |||||||||
* | Yandex N.V. Class “A” (Interactive Media & Services)† | 146,744 | $ | 8,878 | |||||
Total Common Stocks—97.7% (cost $1,160,495) | 2,074,485 | ||||||||
Repurchase Agreement | |||||||||
Fixed Income Clearing Corporation, 0.000% dated 12/31/21, due 1/3/22, repurchase price $47,785, collateralized by U.S. Treasury Note, 2.875%, due 11/15/46, valued at $48,740 | $47,785 | 47,785 | |||||||
Total Repurchase Agreement—2.3% (cost $47,785) | 47,785 | ||||||||
Total Investments—100.0% (cost $1,208,280) | 2,122,270 | ||||||||
Cash and other assets, less liabilities—0.0% | 627 | ||||||||
Net assets—100.0% | $ | 2,122,897 |
ADR = American Depository Receipt
REIT = Real Estate Investment Trust
* = Non-income producing security
† = U.S. listed foreign security
See accompanying Notes to Financial Statements.
December 31, 2021 | William Blair Funds | 43 |
International Growth Fund
Portfolio of Investments, December 31, 2021
At December 31, 2021, the Fund’s Portfolio of Investments includes the following industry categories (as a percentage of long-term investments):
Industrials | 28.4 | % | ||
Information Technology | 21.5 | % | ||
Health Care | 14.3 | % | ||
Consumer Discretionary | 12.1 | % | ||
Financials | 8.9 | % | ||
Materials | 3.7 | % | ||
Communication Services | 3.7 | % | ||
Consumer Staples | 2.6 | % | ||
Energy | 2.6 | % | ||
Real Estate | 1.4 | % | ||
Utilities | 0.8 | % | ||
Total | 100.0 | % |
At December 31, 2021, the Fund’s Portfolio of Investments includes the following currency categories (as a percentage of long-term investments):
Euro | 26.1 | % | ||
British Pound Sterling | 12.4 | % | ||
Japanese Yen | 10.4 | % | ||
U.S. Dollar | 8.7 | % | ||
Swedish Krona | 8.1 | % | ||
Swiss Franc | 8.0 | % | ||
Hong Kong Dollar | 6.1 | % | ||
Indian Rupee | 4.5 | % | ||
Danish Krone | 4.0 | % | ||
Canadian Dollar | 2.4 | % | ||
New Taiwan Dollar | 2.4 | % | ||
Chinese Yuan Renminbi | 2.3 | % | ||
Indonesian Rupiah | 1.3 | % | ||
All Other Currencies | 3.3 | % | ||
Total | 100.0 | % |
See accompanying Notes to Financial Statements.
44 | Annual Report | December 31, 2021 |
December 31, 2021 | William Blair Funds | 45 |
Institutional International Growth Fund
Performance Highlights (Unaudited)
Average Annual Total Returns through 12/31/2021 | ||||||||||||||||
1 Year | 3 Year | 5 Year | 10 Year | |||||||||||||
Institutional International Growth Fund | 9.39 | % | 23.74 | % | 15.15 | % | 11.01 | % | ||||||||
MSCI ACW Ex-U.S. IMI (net) | 8.53 | 13.62 | 9.83 | 7.57 |
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are average annual total returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272, or visit our Web site at www.williamblairfunds.com. From time to time, the investment adviser may waive fees or reimburse expenses for the Fund. Without these waivers/reimbursements, performance would be lower. Investing in smaller and medium capitalization companies involves special risks, including higher volatility and lower liquidity. Smaller and medium capitalization stocks are also more sensitive to purchase/sale transactions and changes in the issuer’s financial condition. International investing involves special risk considerations, including currency fluctuations, lower liquidity, economic and political risk. Shares of the Fund are not subject to a sales load, distribution (Rule 12b-1) fees, or sub-transfer agent fees.
The performance highlights and graph presented above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The Morgan Stanley Capital International (MSCI) All Country World (ACW) Ex-U.S. Investable Market Index (IMI) (net) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the United States. This index approximates the minimum possible dividend reinvestment by deducting for the highest possible withholding tax rates of those markets.
This report identifies the Fund’s investments on December 31, 2021. These holdings are subject to change. Not all stocks in the Fund performed the same, nor is there any guarantee that these stocks will perform as well in the future. Market forecasts provided in this report may not necessarily come to pass.
Sector Diversification (Unaudited)
The sector diversification shown is based on the total long-term securities.
46 | Annual Report | December 31, 2021 |
Institutional International Growth Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks | |||||||||
Europe, Mid-East—48.6% | |||||||||
Belgium—0.3% | |||||||||
Warehouses De Pauw CVA (Equity REIT) . | 90,641 | $ | 4,353 | ||||||
Denmark—3.9% | |||||||||
Chr Hansen Holding A/S (Chemicals) | 36,314 | 2,866 | |||||||
Coloplast A/S Class “B” (Health care equipment & supplies) | 31,634 | 5,574 | |||||||
DSV A/S (Air freight & logistics) | 97,380 | 22,772 | |||||||
* | Genmab A/S (Biotechnology) | 19,976 | 8,043 | ||||||
Netcompany Group A/S (Software) | 27,725 | 2,990 | |||||||
Orsted A/S (Electric utilities) | 45,674 | 5,840 | |||||||
Royal Unibrew A/S (Beverages) | 21,009 | 2,371 | |||||||
50,456 | |||||||||
Finland—0.7% | |||||||||
Neste Oyj (Oil, gas & consumable fuels) | 190,771 | 9,418 | |||||||
France—10.7% | |||||||||
* | Airbus SE (Aerospace & defense) | 166,726 | 21,328 | ||||||
Dassault Systemes SE (Software) | 208,857 | 12,438 | |||||||
Hermes International (Textiles, apparel & luxury goods) | 4,365 | 7,633 | |||||||
Kering S.A. (Textiles, apparel & luxury goods) | 19,572 | 15,752 | |||||||
L’Oreal S.A. (Personal products) | 29,219 | 13,870 | |||||||
LVMH Moet Hennessy Louis Vuitton SE (Textiles, apparel & luxury goods) | 26,890 | 22,257 | |||||||
Safran S.A. (Aerospace & defense) | 102,361 | 12,546 | |||||||
Sartorius Stedim Biotech (Life sciences tools & services) | 18,384 | 10,097 | |||||||
Teleperformance (Professional services) | 39,017 | 17,413 | |||||||
* | Worldline S.A. (IT services) | 77,597 | 4,330 | ||||||
137,664 | |||||||||
Germany—5.3% | |||||||||
Carl Zeiss Meditec AG (Health care equipment & supplies) | 29,911 | 6,295 | |||||||
CompuGroup Medical SE & Co. KgaA (Health care technology) | 31,510 | 2,552 | |||||||
* | CTS Eventim AG & Co. KGaA (Entertainment) | 63,645 | 4,663 | ||||||
* | HelloFresh SE (Food & staples retailing) | 75,128 | 5,777 | ||||||
* | Hypoport SE (Diversified financial services) | 3,496 | 2,034 | ||||||
Infineon Technologies AG (Semiconductors & semiconductor equipment) | 315,391 | 14,636 | |||||||
KION Group AG (Machinery) | 46,011 | 5,054 | |||||||
MTU Aero Engines AG (Aerospace & defense) | 66,992 | 13,683 | |||||||
Nemetschek SE (Software) | 26,761 | 3,437 | |||||||
Puma SE (Textiles, apparel &luxury goods) | 80,172 | 9,812 | |||||||
67,943 |
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Europe, Mid-East—(continued) | |||||||||
Ireland—2.6% | |||||||||
* | ICON plc (Life sciences tools & services)† | 43,396 | $ | 13,440 | |||||
Kingspan Group plc (Building products) | 95,861 | 11,459 | |||||||
* | Ryanair Holdings plc—ADR (Airlines) | 81,316 | 8,321 | ||||||
33,220 | |||||||||
Israel—1.0% | |||||||||
* | Inmode, Ltd. (Health care equipment & supplies)† | 55,695 | 3,931 | ||||||
* | Nice, Ltd.—ADR (Software) | 14,268 | 4,332 | ||||||
* | Wix.com, Ltd. (IT services)† | 25,385 | 4,005 | ||||||
12,268 | |||||||||
Italy—0.8% | |||||||||
Amplifon SpA (Health care providers & services) | 68,046 | 3,676 | |||||||
* | Brunello Cucinelli SpA (Textiles, apparel & luxury goods) | 40,006 | 2,765 | ||||||
Moncler SpA (Textiles, apparel & luxury goods) | 48,793 | 3,556 | |||||||
9,997 | |||||||||
Luxembourg—1.0% | |||||||||
Eurofins Scientific SE (Life sciences tools & services) | 75,097 | 9,302 | |||||||
Tenaris S.A. (Energy equipment & services) | 262,530 | 2,753 | |||||||
12,055 | |||||||||
Netherlands—4.3% | |||||||||
* | Adyen N.V. (IT services) | 5,564 | 14,642 | ||||||
ASML Holding N.V. (Semiconductors & semiconductor equipment) | 36,320 | 29,222 | |||||||
BE Semiconductor Industries N.V. (Semiconductors & semiconductor equipment) | 24,265 | 2,073 | |||||||
Euronext N.V. (Capital markets) | 38,973 | 4,049 | |||||||
IMCD N.V. (Trading companies & distributors) | 21,303 | 4,722 | |||||||
54,708 | |||||||||
Norway—0.7% | |||||||||
* | AutoStore Holdings, Ltd. (Machinery) | 403,470 | 1,594 | ||||||
TOMRA Systems ASA (Commercial services & supplies) | 96,151 | 6,889 | |||||||
8,483 | |||||||||
Spain—1.5% | |||||||||
* | Amadeus IT Group S.A. (IT services) | 215,738 | 14,649 | ||||||
EDP Renovaveis S.A. (Independent power & renewable electricity producers) | 192,721 | 4,805 | |||||||
19,454 |
See accompanying Notes to Financial Statements.
December 31, 2021 | William Blair Funds | 47 |
Institutional International Growth Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Europe, Mid-East—(continued) | |||||||||
Sweden—8.0% | |||||||||
AddTech AB Class “B” (Trading companies & distributors) | 119,961 | $ | 2,868 | ||||||
Atlas Copco AB Class “A” (Machinery) | 347,983 | 24,099 | |||||||
Beijer Ref AB (Trading companies & distributors) | 176,811 | 3,872 | |||||||
* | BICO Group AB (Life sciences tools & services) | 56,814 | 1,747 | ||||||
EQT AB (Capital markets) | 136,429 | 7,443 | |||||||
Evolution AB (Hotels, restaurants & leisure) | 65,780 | 9,363 | |||||||
* | Hemnet Group AB (Interactive Media & Services) | 94,801 | 1,755 | ||||||
Hexagon AB Class “B” (Electronic equipment, instruments & components) | 963,422 | 15,316 | |||||||
Indutrade AB (Machinery) | 191,744 | 5,882 | |||||||
Investment AB Latour Class “B” (Industrial conglomerates) | 117,722 | 4,803 | |||||||
Lifco AB Class “B” (Industrial conglomerates) | 155,945 | 4,672 | |||||||
Nibe Industrier AB Class “B” (Building products) | 476,403 | 7,210 | |||||||
Nolato AB Class “B” (Industrial conglomerates) | 264,340 | 3,156 | |||||||
Sweco AB Class “B” (Construction & engineering) | 119,341 | 2,248 | |||||||
Thule Group AB (Leisure products) | 53,143 | 3,223 | |||||||
Vitrolife AB (Biotechnology) | 67,725 | 4,197 | |||||||
101,854 | |||||||||
Switzerland—7.8% | |||||||||
Bachem Holding AG Class “B” (Life sciences tools & services) | 3,090 | 2,428 | |||||||
Belimo Holding AG (Building products) | 5,040 | 3,208 | |||||||
Lonza Group AG (Life sciences tools & services) | 22,070 | 18,447 | |||||||
Partners Group Holding AG (Capital markets) | 9,962 | 16,536 | |||||||
Siegfried Holding AG (Life sciences tools & services) | 3,270 | 3,192 | |||||||
SIG Combibloc Group AG (Containers & packaging) | 149,851 | 4,187 | |||||||
Sika AG (Chemicals) | 57,388 | 23,945 | |||||||
* | Softwareone Holding AG (Electronic equipment, instruments & components) | 74,677 | 1,619 | ||||||
Straumann Holding AG (Health care equipment & supplies) | 6,863 | 14,589 | |||||||
Tecan Group AG (Life sciences tools & services) | 7,613 | 4,641 | |||||||
VAT Group AG (Machinery) | 12,683 | 6,325 | |||||||
* | Zur Rose Group AG (Food & staples retailing) | 5,087 | 1,315 | ||||||
100,432 |
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Emerging Asia—18.1% | |||||||||
China—7.1% | |||||||||
Aier Eye Hospital Group Co., Ltd. Class “A” (Health care providers & services) | 410,427 | $ | 2,723 | ||||||
* | Alibaba Group Holding, Ltd. (Internet & direct marketing retail) | 550,000 | 8,387 | ||||||
Centre Testing International Group Co., Ltd. Class “A” (Professional services) | 711,200 | 2,998 | |||||||
Chacha Food Co., Ltd. Class “A” (Food products) | 224,900 | 2,165 | |||||||
Foshan Haitian Flavouring & Food Co., Ltd. Class “A” (Food products) | 206,912 | 3,412 | |||||||
Hangzhou Tigermed Consulting Co., Ltd. Class “A” (Life sciences tools & services) | 180,300 | 3,615 | |||||||
* | JD.com, Inc. Class “A” (Internet & direct marketing retail) | 159,750 | 5,614 | ||||||
Li Ning Co., Ltd. (Textiles, apparel & luxury goods) | 1,046,500 | 11,455 | |||||||
NAURA Technology Group Co., Ltd. Class “A” (Semiconductors & semiconductor equipment) | 86,100 | 4,688 | |||||||
Ping An Insurance Group Co. of China, Ltd. Class “H” (Insurance) | 1,311,500 | 9,444 | |||||||
Proya Cosmetics Co., Ltd. Class “A” (Personal products) | 85,400 | 2,791 | |||||||
Shenzhen Mindray Bio-Medical Electronics Co., Ltd. Class “A” (Health care equipment & supplies) | 62,800 | 3,752 | |||||||
Silergy Corporation (Semiconductors & semiconductor equipment) | 17,000 | 3,088 | |||||||
Tencent Holdings, Ltd. (Interactive Media & Services) | 231,800 | 13,579 | |||||||
* | Weimob, Inc. (Software) | 733,000 | 742 | ||||||
WuXi AppTec Co., Ltd. Class “A” (Life sciences tools & services) | 168,656 | 3,138 | |||||||
* | Wuxi Biologics Cayman, Inc. (Life sciences tools & services) | 801,000 | 9,507 | ||||||
91,098 | |||||||||
India—4.4% | |||||||||
Apollo Hospitals Enterprise, Ltd. (Health care providers & services) | 33,551 | 2,268 | |||||||
Crompton Greaves Consumer Electricals, Ltd. (Household durables) | 414,148 | 2,434 | |||||||
Dr. Lal PathLabs, Ltd. (Health care providers & services) | 76,755 | 3,940 | |||||||
Havells India, Ltd. (Electrical equipment) | .158,843 | 2,979 | |||||||
HDFC Bank, Ltd. (Banks) | 614,071 | 12,234 | |||||||
Info Edge India, Ltd. (Interactive Media & Services) | 34,091 | 2,551 | |||||||
* | InterGlobe Aviation, Ltd. (Airlines) | 152,388 | 4,130 | ||||||
Pidilite Industries, Ltd. (Chemicals) | 77,137 | 2,556 | |||||||
Reliance Industries, Ltd. (Oil, gas & consumable fuels) | 647,913 | 20,644 | |||||||
Voltas, Ltd. (Construction & engineering) | .132,954 | 2,182 | |||||||
55,918 |
See accompanying Notes to Financial Statements.
48 | Annual Report | December 31, 2021 |
Institutional International Growth Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Emerging Asia—(continued) | |||||||||
Indonesia—1.9% | |||||||||
Bank Central Asia Tbk PT (Banks) | 31,205,730 | $ | 15,983 | ||||||
* | Sea, Ltd.—ADR (Entertainment) | 39,928 | 8,933 | ||||||
24,916 | |||||||||
South Korea—0.9% | |||||||||
* | Kakao Corporation (Interactive Media & Services) | 66,765 | 6,318 | ||||||
Samsung SDI Co., Ltd. (Electronic equipment, instruments & components) | 10,589 | 5,835 | |||||||
12,153 | |||||||||
Taiwan—3.7% | |||||||||
Airtac International Group (Machinery) | 70,204 | 2,588 | |||||||
ASMedia Technology, Inc. (Semiconductors & semiconductor equipment) | 33,000 | 2,171 | |||||||
Globalwafers Co., Ltd. (Semiconductors & semiconductor equipment) | 76,000 | 2,439 | |||||||
MediaTek, Inc. (Semiconductors & semiconductor equipment) | 400,000 | 17,205 | |||||||
momo.com, Inc. (Internet & direct marketing retail) | 39,000 | 2,291 | |||||||
Taiwan Semiconductor Manufacturing Co., Ltd.—ADR (Semiconductors & semiconductor equipment) | 167,735 | 20,180 | |||||||
46,874 | |||||||||
Thailand—0.1% | |||||||||
Carabao Group PCL Class “F” (Beverages) | 388,300 | 1,389 | |||||||
United Kingdom—12.1% | |||||||||
3i Group plc (Capital markets) | 257,393 | 5,048 | |||||||
Ashtead Group plc (Trading companies & distributors) | 303,594 | 24,417 | |||||||
AVEVA Group plc (Software) | 74,047 | 3,412 | |||||||
Big Yellow Group plc (Equity REIT) | 138,309 | 3,196 | |||||||
* | Ceres Power Holdings plc (Electrical equipment) | 98,566 | 1,329 | ||||||
* | Compass Group plc (Hotels, restaurants & leisure) | 653,451 | 14,603 | ||||||
Croda International plc (Chemicals) | 96,852 | 13,267 | |||||||
CVS Group plc (Health care providers & services) | 78,824 | 2,390 | |||||||
Diploma plc (Trading companies & distributors) | 69,088 | 3,155 | |||||||
Experian plc (Professional services) | 258,681 | 12,717 | |||||||
Halma plc (Electronic equipment, instruments & components) | 249,847 | 10,822 | |||||||
Intermediate Capital Group plc (Capital markets) | 199,179 | 5,915 | |||||||
Intertek Group plc (Professional services) . | 59,913 | 4,566 | |||||||
London Stock Exchange Group plc (Capital markets) | 106,780 | 10,016 | |||||||
Renishaw plc (Electronic equipment, instruments & components) | 29,764 | 1,926 | |||||||
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
United Kingdom—(continued) | |||||||||
Rentokil Initial plc (Commercial services & supplies) | 992,811 | $ | 7,848 | ||||||
Rotork plc (Machinery) | 985,672 | 4,765 | |||||||
Segro plc (Equity REIT) | 504,251 | 9,804 | |||||||
Softcat plc (IT services) | 100,773 | 2,461 | |||||||
Spirax-Sarco Engineering plc (Machinery) . | 45,137 | 9,806 | |||||||
* | Trainline plc (Hotels, restaurants & leisure) | 269,251 | 1,017 | ||||||
* | Trustpilot Group plc (Interactive Media & Services) | 526,027 | 2,331 | ||||||
154,811 | |||||||||
Japan—10.1% | |||||||||
Asahi Intecc Co., Ltd. (Health care equipment & supplies) | 137,600 | 2,956 | |||||||
* | BASE, Inc. (IT services) | 127,400 | 682 | ||||||
Benefit One, Inc. (Professional services) | 93,400 | 4,007 | |||||||
* | Bengo4.com, Inc. (Interactive Media & Services) | 16,400 | 868 | ||||||
Daikin Industries, Ltd. (Building products) | 59,700 | 13,541 | |||||||
Disco Corporation (Semiconductors & semiconductor equipment) | 5,900 | 1,803 | |||||||
Food & Life Cos., Ltd. (Hotels, restaurants & leisure) | 70,900 | 2,681 | |||||||
GMO Payment Gateway, Inc. (IT services) | 23,900 | 2,981 | |||||||
Harmonic Drive Systems, Inc. (Machinery) | 39,800 | 1,682 | |||||||
Hoya Corporation (Health care equipment & supplies) | 65,700 | 9,772 | |||||||
Keyence Corporation (Electronic equipment, instruments & components) | 25,800 | 16,212 | |||||||
M3, Inc. (Health care technology) | 99,300 | 5,001 | |||||||
MISUMI Group, Inc. (Machinery) | 101,300 | 4,157 | |||||||
MonotaRO Co., Ltd. (Trading companies & distributors) | 181,100 | 3,264 | |||||||
Nihon M&A Center Holdings, Inc. (Professional services) | 206,000 | 5,052 | |||||||
Olympus Corporation (Health care equipment & supplies) | 592,400 | 13,645 | |||||||
Omron Corporation (Electronic equipment, instruments & components) | 111,100 | 11,068 | |||||||
Rakus Co., Ltd. (Software) | 105,400 | 2,840 | |||||||
* | SHIFT, Inc. (IT services) | 15,800 | 3,277 | ||||||
SMC Corporation (Machinery) | 20,200 | 13,625 | |||||||
SMS Co., Ltd. (Professional services) | 48,900 | 1,926 | |||||||
TechnoPro Holdings, Inc. (Professional services) | 123,900 | 3,759 | |||||||
TIS, Inc. (IT services) | 169,000 | 5,032 | |||||||
129,831 | |||||||||
Canada—3.4% | |||||||||
* | Canada Goose Holdings, Inc. (Textiles, apparel & luxury goods) | 78,719 | 2,917 | ||||||
Canadian National Railway Co. (Road & rail) | 176,896 | 21,729 | |||||||
Enghouse Systems, Ltd. (Software) | 32,454 | 1,243 | |||||||
* | Kinaxis, Inc. (Software) | 22,930 | 3,214 |
See accompanying Notes to Financial Statements.
December 31, 2021 | William Blair Funds | 49 |
Institutional International Growth Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Canada—(continued) | |||||||||
* | Lululemon Athletica, Inc. (Textiles, apparel & luxury goods) | 26,991 | $ | 10,566 | |||||
* | Nuvei Corporation (IT services) | 33,631 | 2,180 | ||||||
Toromont Industries, Ltd. (Trading companies & distributors) | 24,374 | 2,204 | |||||||
44,053 | |||||||||
Asia—3.2% | |||||||||
Australia—1.8% | |||||||||
Aristocrat Leisure, Ltd. (Hotels, restaurants & leisure) | 219,115 | 6,946 | |||||||
* | Atlassian Corporation plc Class “A” (Software)† | 31,215 | 11,902 | ||||||
Netwealth Group, Ltd. (Capital markets) | 160,740 | 2,069 | |||||||
Pro Medicus, Ltd. (Health care technology) | 53,017 | 2,408 | |||||||
23,325 | |||||||||
Hong Kong—1.4% | |||||||||
AIA Group, Ltd. (Insurance) | 1,776,863 | 17,911 | |||||||
Emerging Latin America—1.7% | |||||||||
Argentina—0.9% | |||||||||
* | Globant S.A. (IT services)† | 15,086 | 4,738 | ||||||
* | MercadoLibre, Inc. (Internet & direct marketing retail) | 4,851 | 6,541 | ||||||
11,279 | |||||||||
Brazil—0.5% | |||||||||
B3 S.A. - Brasil Bolsa Balcao (Capital markets) | 1,257,900 | 2,516 | |||||||
* | Locaweb Servicos de Internet S.A. (IT services) | 804,586 | 1,901 | ||||||
Notre Dame Intermedica Participacoes S.A. (Health care providers & services) | 178,400 | 1,933 | |||||||
6,350 | |||||||||
Mexico—0.2% | |||||||||
Grupo Aeroportuario del Sureste S.A.B. de C.V.—ADR (Transportation infrastructure) | 12,501 | 2,577 | |||||||
Uruguay—0.1% | |||||||||
* | Dlocal, Ltd. (IT services)† | 49,457 | 1,765 | ||||||
Emerging Europe—0.6% | |||||||||
Poland—0.2% | |||||||||
* | Allegro.eu S.A. (Internet & direct marketing retail) | 220,574 | 2,128 | ||||||
Russia—0.4% | |||||||||
* | Yandex N.V. Class “A” (Interactive Media & Services)† | 88,699 | 5,366 | ||||||
Total Common Stocks—97.8% (cost $701,950) | 1,254,049 |
Issuer | Principal Amount | Value | |||||||
Common Stocks—(continued) | |||||||||
Repurchase Agreement | |||||||||
Fixed Income Clearing Corporation, 0.000% dated 12/31/21, due 1/3/22, repurchase price $29,470, collateralized by U.S. Treasury Bond, 3.125%, due 08/15/44, valued at $30,059. | $29,470 | $ | 29,470 | ||||||
Total Repurchase Agreement—2.3% (cost $29,470) | 29,470 | ||||||||
Total Investments—100.1% (cost $731,420) | 1,283,519 | ||||||||
Liabilities, plus cash and other assets—(0.1)% | (1,676 | ) | |||||||
Net assets—100.0% | $ | 1,281,843 |
ADR = American Depository Receipt
REIT = Real Estate Investment Trust
* = Non-income producing security
† = U.S. listed foreign security
At December 31, 2021, the Fund’s Portfolio of Investments includes the following industry categories (as a percentage of long-term investments):
Industrials | 28.4 | % | ||
Information Technology | 21.5 | % | ||
Health Care | 14.3 | % | ||
Consumer Discretionary | 12.1 | % | ||
Financials | 8.9 | % | ||
Materials | 3.7 | % | ||
Communication Services | 3.7 | % | ||
Consumer Staples | 2.6 | % | ||
Energy | 2.6 | % | ||
Real Estate | 1.4 | % | ||
Utilities | 0.8 | % | ||
Total | 100.0 | % |
At December 31, 2021, the Fund’s Portfolio of Investments includes the⭧following currency categories (as a percentage of long-term investments):
Euro | 26.1 | % | ||
British Pound Sterling | 12.4 | % | ||
Japanese Yen | 10.4 | % | ||
U.S. Dollar | 8.7 | % | ||
Swedish Krona | 8.1 | % | ||
Swiss Franc | 8.0 | % | ||
Hong Kong Dollar | 6.1 | % | ||
Indian Rupee | 4.5 | % | ||
Danish Krone | 4.0 | % | ||
Canadian Dollar | 2.4 | % | ||
New Taiwan Dollar | 2.4 | % | ||
Chinese Yuan Renminbi | 2.3 | % | ||
Indonesian Rupiah | 1.3 | % | ||
All Other Currencies | 3.3 | % | ||
Total | 100.0 | % |
See accompanying Notes to Financial Statements.
50 | Annual Report | December 31, 2021 |
December 31, 2021 | William Blair Funds | 51 |
International Small Cap Growth Fund
Performance Highlights (Unaudited)
Average Annual Total Returns through 12/31/2021 | ||||||||||||||||
1 Year | 3 Year | 5 Year | 10 Year | |||||||||||||
Class N | 10.87 | % | 24.05 | % | 13.76 | % | 10.74 | % | ||||||||
Class I | 11.17 | 24.40 | 14.10 | 11.06 | ||||||||||||
Class R6 | 11.27 | 24.53 | 14.21 | 11.20 | ||||||||||||
MSCI ACW Ex-U.S. Small Cap Index (net) | 12.93 | 16.45 | 11.21 | 9.46 |
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are average annual total returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272, or visit our Web site at www.williamblairfunds.com. From time to time, the investment adviser may waive fees or reimburse expenses for the Fund. Without these waivers/reimbursements, performance would be lower. Investing in smaller companies involves special risks, including higher volatility and lower liquidity. Smaller capitalization stocks are also more sensitive to purchase/sale transactions and changes in the issuer’s financial condition. International investing involves special risk considerations, including currency fluctuations, lower liquidity, economic and political risk. Class N shares are not subject to a sales load. Class I shares are not subject to a sales load or distribution (Rule 12b-1) fees. Class R6 shares are not subject to a sales load, distribution (Rule 12b-1) fees, or sub-transfer agent fees.
The performance highlights and graph presented above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The Morgan Stanley Capital International (MSCI) All Country World (ACW) Ex-U.S. Small Cap Index (net) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of small capitalization developed and emerging markets, excluding the United States. This index approximates the minimum possible dividend reinvestment by deducting for the highest possible withholding tax rates of those markets.
This report identifies the Fund’s investments on December 31, 2021. These holdings are subject to change. Not all stocks in the Fund performed the same, nor is there any guarantee that these stocks will perform as well in the future. Market forecasts provided in this report may not necessarily come to pass.
Sector Diversification (Unaudited)
The sector diversification shown is based on the total long-term securities.
52 | Annual Report | December 31, 2021 |
International Small Cap Growth Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks | |||||||||
Europe, Mid-East—44.4% | |||||||||
Belgium—2.5% | |||||||||
Melexis N.V. (Semiconductors & semiconductor equipment) | 49,994 | $ | 5,965 | ||||||
Warehouses De Pauw CVA (Equity REIT) | 80,013 | 3,842 | |||||||
9,807 | |||||||||
Finland—1.0% | |||||||||
* | Musti Group Oyj (Specialty retail) | 106,106 | 3,740 | ||||||
Germany—3.1% | |||||||||
CompuGroup Medical SE & Co. KgaA (Health care technology) | 35,709 | 2,892 | |||||||
* | CTS Eventim AG & Co. KGaA (Entertainment) | 37,447 | 2,744 | ||||||
* | Hypoport SE (Diversified financial services) | 7,413 | 4,313 | ||||||
* | Westwing Group AG (Internet & direct marketing retail) | 85,606 | 2,158 | ||||||
12,107 | |||||||||
Israel—2.4% | |||||||||
* | Inmode, Ltd. (Health care equipment & supplies)† | 115,797 | 8,173 | ||||||
* | NEOGAMES S.A. (Hotels, restaurants & leisure)† | 38,770 | 1,077 | ||||||
9,250 | |||||||||
Italy—2.8% | |||||||||
Amplifon SpA (Health care providers & services) | 57,886 | 3,127 | |||||||
* | Ariston Holding N.V. (Household durables) | 191,694 | 2,213 | ||||||
* | Brunello Cucinelli SpA (Textiles, apparel & luxury goods) | 38,693 | 2,674 | ||||||
Carel Industries SpA (Building products) | 86,411 | 2,617 | |||||||
10,631 | |||||||||
Netherlands—0.5% | |||||||||
BE Semiconductor Industries N.V. (Semiconductors & semiconductor equipment) | 23,175 | 1,979 | |||||||
Norway—1.8% | |||||||||
* | AutoStore Holdings, Ltd. (Machinery) | 424,116 | 1,675 | ||||||
TOMRA Systems ASA (Commercial services & supplies) | 72,312 | 5,182 | |||||||
6,857 | |||||||||
Spain—0.8% | |||||||||
EDP Renovaveis S.A. (Independent power & renewable electricity producers) | 118,085 | 2,944 | |||||||
Sweden—23.9% | |||||||||
AddTech AB Class “B” (Trading companies & distributors) | 330,630 | 7,903 | |||||||
Arjo AB Class “B” (Health care equipment & supplies) | 531,351 | 6,515 | |||||||
Beijer Ref AB (Trading companies & distributors) | 414,100 | 9,069 |
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Europe, Mid-East—(continued) | |||||||||
Sweden—(continued) | |||||||||
* | BICO Group AB (Life sciences tools & services) | 108,233 | $ | 3,328 | |||||
Biotage AB (Life sciences tools & services) | 146,955 | 4,261 | |||||||
Fortnox AB (Software) | 44,937 | 2,909 | |||||||
* | Hemnet Group AB (Interactive Media & Services) | 141,368 | 2,617 | ||||||
Investment AB Latour Class “B” (Industrial conglomerates) | 204,722 | 8,353 | |||||||
Lagercrantz Group AB Class “B” (Electronic equipment, instruments & components) | 217,121 | 3,198 | |||||||
Lifco AB Class “B” (Industrial conglomerates) | 252,370 | 7,560 | |||||||
MIPS AB (Leisure products) | 83,742 | 11,001 | |||||||
Nolato AB Class “B” (Industrial conglomerates) | 507,817 | 6,064 | |||||||
* | Sdiptech AB Class “B” (Commercial services & supplies) | 94,916 | 4,953 | ||||||
Sweco AB Class “B” (Construction & engineering) | 295,447 | 5,565 | |||||||
Vitrolife AB (Biotechnology) | 133,843 | 8,295 | |||||||
91,591 | |||||||||
Switzerland—5.6% | |||||||||
Belimo Holding AG (Building products) | 7,181 | 4,571 | |||||||
Kardex Holding AG (Machinery) | 20,053 | 6,602 | |||||||
* | Siegfried Holding AG (Life sciences tools & services) | 4,566 | 4,457 | ||||||
* | Softwareone Holding AG (Electronic equipment, instruments & components) | 148,754 | 3,226 | ||||||
* | Zur Rose Group AG (Food & staples retailing) | 9,941 | 2,569 | ||||||
21,425 | |||||||||
Japan—15.6% | |||||||||
* | BASE, Inc. (IT services) | 229,600 | 1,230 | ||||||
BayCurrent Consulting, Inc. (Professional services) | 14,500 | 5,610 | |||||||
Benefit One, Inc. (Professional services) | 197,600 | 8,477 | |||||||
* | Bengo4.com, Inc. (Interactive Media & Services) | 36,300 | 1,922 | ||||||
Food & Life Cos., Ltd. (Hotels, restaurants & leisure) | 133,000 | 5,030 | |||||||
Harmonic Drive Systems, Inc. (Machinery) | 58,400 | 2,467 | |||||||
* | Hennge KK (IT services) | 68,200 | 1,149 | ||||||
Japan Elevator Service Holdings Co., Ltd. (Commercial services & supplies) | 195,800 | 3,656 | |||||||
JINS Holdings, Inc. (Specialty retail) | 67,800 | 4,132 | |||||||
* | Plaid, Inc. (Software) | 82,500 | 1,531 | ||||||
Rakus Co., Ltd. (Software) | 201,600 | 5,433 | |||||||
* | SHIFT, Inc. (IT services) | 26,300 | 5,455 | ||||||
SMS Co., Ltd. (Professional services) | 169,000 | 6,655 | |||||||
TechnoPro Holdings, Inc. (Professional services) | 226,500 | 6,872 | |||||||
59,619 |
See accompanying Notes to Financial Statements.
December 31, 2021 | William Blair Funds | 53 |
International Small Cap Growth Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Emerging Asia—14.3% | |||||||||
China—2.1% | |||||||||
Chacha Food Co., Ltd. Class “A” (Food products) | 356,100 | $ | 3,429 | ||||||
Changzhou Xingyu Automotive Lighting Systems Co., Ltd. Class “A” (Auto components) | 53,462 | 1,713 | |||||||
Proya Cosmetics Co., Ltd. Class “A” (Personal products) | 91,244 | 2,982 | |||||||
8,124 | |||||||||
India—6.3% | |||||||||
* | Aavas Financiers, Ltd. (Thrifts & mortgage finance) | 88,256 | 3,087 | ||||||
* | Affle India, Ltd. (Media) | 97,252 | 1,476 | ||||||
* | AU Small Finance Bank, Ltd. (Banks) | 371,752 | 5,197 | ||||||
IndiaMart InterMesh, Ltd. (Trading companies & distributors) | 18,498 | 1,611 | |||||||
Indian Energy Exchange Ltd. (Capital markets) | 838,002 | 2,850 | |||||||
Info Edge India, Ltd. (Interactive Media & Services) | 44,017 | 3,294 | |||||||
Motherson Sumi Systems, Ltd. (Auto components) | 2,242,908 | 6,683 | |||||||
24,198 | |||||||||
Indonesia—0.5% | |||||||||
Ace Hardware Indonesia Tbk PT (Specialty retail) | 23,099,400 | 2,074 | |||||||
Malaysia—0.5% | |||||||||
MR DIY Group M Bhd (Specialty retail) | 2,148,500 | 1,862 | |||||||
South Korea—1.1% | |||||||||
* | Koh Young Technology, Inc. (Semiconductors & semiconductor equipment) | 210,745 | 4,202 | ||||||
Taiwan—3.8% | |||||||||
ASPEED Technology, Inc. (Semiconductors & semiconductor equipment) | 46,000 | 5,927 | |||||||
momo.com, Inc. (Internet & direct marketing retail) | 60,800 | 3,571 | |||||||
Voltronic Power Technology Corporation (Electrical equipment) | 87,451 | 4,884 | |||||||
14,382 | |||||||||
United Kingdom—14.1% | |||||||||
AVEVA Group plc (Software) | 36,273 | 1,671 | |||||||
* | Beazley plc (Insurance) | 540,262 | 3,410 | ||||||
Burford Capital, Ltd. (Diversified financial services) | 194,451 | 2,029 | |||||||
* | Ceres Power Holdings plc (Electrical equipment) | 37,583 | 507 | ||||||
CVS Group plc (Health care providers & services) | 114,778 | 3,480 | |||||||
Diploma plc (Trading companies & distributors) | 88,749 | 4,053 | |||||||
dotdigital group plc (Software) | 833,079 | 2,230 | |||||||
Ideagen plc (Software) | 685,002 | 2,550 |
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
United Kingdom—(continued) | |||||||||
IntegraFin Holdings plc (Capital markets) | 686,308 | $ | 5,207 | ||||||
* | Moonpig Group plc (Internet & direct marketing retail) | 138,502 | 703 | ||||||
Renishaw plc (Electronic equipment, instruments & components) | 38,523 | 2,492 | |||||||
Rotork plc (Machinery) | 790,047 | 3,820 | |||||||
Safestore Holdings plc (Equity REIT) | 488,361 | 9,314 | |||||||
Softcat plc (IT services) | 271,512 | 6,630 | |||||||
* | Trainline plc (Hotels, restaurants & leisure) | 397,153 | 1,500 | ||||||
* | Trustpilot Group plc (Interactive Media & Services) | 995,931 | 4,414 | ||||||
54,010 | |||||||||
Emerging Latin America—3.8% | |||||||||
Brazil—2.2% | |||||||||
Arezzo Industria e Comercio S.A. (Textiles, apparel & luxury goods) | 207,600 | 2,861 | |||||||
* | Locaweb Servicos de Internet S.A. (IT services) | 335,200 | 792 | ||||||
Pet Center Comercio e Participacoes S.A. (Specialty retail) | 867,092 | 2,548 | |||||||
TOTVS S.A. (Software) | 444,900 | 2,288 | |||||||
8,489 | |||||||||
Mexico—1.6% | |||||||||
Grupo Aeroportuario del Centro Norte S.A.B. de C.V. (Transportation infrastructure) | 918,700 | 6,174 | |||||||
Canada—2.3% | |||||||||
* | Canada Goose Holdings, Inc. (Textiles, apparel & luxury goods) | 48,964 | 1,815 | ||||||
Enghouse Systems, Ltd. (Software) | 69,378 | 2,656 | |||||||
* | Kinaxis, Inc. (Software) | 30,210 | 4,235 | ||||||
8,706 | |||||||||
Asia—2.2% | |||||||||
Australia—2.2% | |||||||||
* | Nanosonics, Ltd. (Health care equipment & supplies) | 408,258 | 1,874 | ||||||
Netwealth Group, Ltd. (Capital markets) | 154,710 | 1,991 | |||||||
Pro Medicus, Ltd. (Health care technology) | 99,708 | 4,530 | |||||||
8,395 | |||||||||
Emerging Mid-East, Africa—1.7% | |||||||||
South Africa—1.0% | |||||||||
Clicks Group, Ltd. (Food & staples retailing) | 203,019 | 4,020 | |||||||
United Arab Emirates—0.7% | |||||||||
* | Network International Holdings plc (IT services) | 669,359 | 2,646 | ||||||
Total Common Stocks—98.4% (cost $288,368) | 377,232 |
See accompanying Notes to Financial Statements.
54 | Annual Report | December 31, 2021 |
International Small Cap Growth Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Principal Amount | Value | |||||||
Repurchase Agreement | |||||||||
Fixed Income Clearing Corporation, 0.000% dated 12/31/21, due 1/3/22, repurchase price $6,117, collateralized by U.S. Treasury Bond, 3.125%, due 08/15/44, valued at $6,239. | $6,117 | $ | 6,117 | ||||||
Total Repurchase Agreement—1.6% (cost $6,117) | 6,117 | ||||||||
Total Investments—100.0% (cost $294,485) | 383,349 | ||||||||
Cash and other assets, less liabilities—0.0% | 162 | ||||||||
Net assets—100.0% | $ | 383,511 |
REIT = Real Estate Investment Trust
* = Non-income producing security
† = U.S. listed foreign security
At December 31, 2021, the Fund’s Portfolio of Investments includes the following industry categories (as a percentage of long-term investments):
Industrials | 33.1 | % | ||
Information Technology | 18.7 | % | ||
Consumer Discretionary | 15.2 | % | ||
Health Care | 13.5 | % | ||
Financials | 7.4 | % | ||
Communication Services | 4.4 | % | ||
Real Estate | 3.5 | % | ||
Consumer Staples | 3.4 | % | ||
Utilities | 0.8 | % | ||
Total | 100.0 | % |
At December 31, 2021, the Fund’s Portfolio of Investments includes the following currency categories (as a percentage of long-term investments):
Swedish Krona | 24.3 | % | ||
Japanese Yen | 15.8 | % | ||
British Pound Sterling | 15.0 | % | ||
Euro | 10.9 | % | ||
Indian Rupee | 6.4 | % | ||
Swiss Franc | 5.7 | % | ||
New Taiwan Dollar | 3.8 | % | ||
U.S. Dollar | 2.9 | % | ||
Brazilian Real | 2.3 | % | ||
Australian Dollar | 2.2 | % | ||
Chinese Yuan Renminbi | 2.2 | % | ||
Canadian Dollar | 1.8 | % | ||
Norwegian Krone | 1.8 | % | ||
Mexican Peso | 1.6 | % | ||
South Korean Won | 1.1 | % | ||
South African Rand | 1.1 | % | ||
All Other Currencies | 1.1 | % | ||
Total | 100.0 | % |
See accompanying Notes to Financial Statements.
December 31, 2021 | William Blair Funds | 55 |
56 | Annual Report | December 31, 2021 |
Emerging Markets Leaders Fund
Performance Highlights (Unaudited)
Average Annual Total Returns through 12/31/2021 | ||||||||||||||||
1 Year | 3 Year | 5 Year | 10 Year | |||||||||||||
Class N | (7.69 | )% | 14.55 | % | 11.87 | % | 6.36 | % | ||||||||
Class I | (7.48 | ) | 14.84 | 12.15 | 6.65 | |||||||||||
Class R6 | (7.35 | ) | 14.91 | 12.23 | 6.74 | |||||||||||
MSCI Emerging Markets Index (net) | (2.54 | ) | 10.94 | 9.87 | 5.49 |
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are average annual total returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272, or visit our Web site at www.williamblairfunds.com. International investing involves special risk considerations, including currency fluctuations, lower liquidity, economic and political risk. These risks may be magnified when investing in emerging markets. From time to time, the investment adviser may waive fees or reimburse expenses for the Fund. Without these waivers/reimbursements, performance would be lower. Class N shares are not subject to a sales load. Class I shares are not subject to a sales load or distribution (Rule 12b-1) fees. Class R6 shares are not subject to a sales load, distribution (Rule 12b-1) fees, or sub-transfer agent fees.
The performance highlights and graph presented above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The Morgan Stanley Capital International (MSCI) Emerging Markets Index (net) is a free float-adjusted market-capitalization-weighted index that is designed to measure equity market performance of emerging markets. This index approximates the minimum possible dividend reinvestment by deducting for the highest possible withholding tax rates of those markets.
This report identifies the Fund’s investments on December 31, 2021. These holdings are subject to change. Not all stocks in the Fund performed the same, nor is there any guarantee that these stocks will perform as well in the future. Market forecasts provided in this report may not necessarily come to pass.
Sector Diversification (Unaudited)
The sector diversification shown is based on the total long-term securities.
December 31, 2021 | William Blair Funds | 57 |
Emerging Markets Leaders Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks | |||||||||
Emerging Asia—70.3% | |||||||||
China—20.7% | |||||||||
Aier Eye Hospital Group Co., Ltd. Class “A” (Health care providers & services) | 521,986 | $ | 3,463 | ||||||
* | Alibaba Group Holding, Ltd. (Internet & direct marketing retail) | 1,174,328 | 17,907 | ||||||
China Tourism Group Duty Free Corporation, Ltd. Class “A” (Specialty retail) | 193,856 | 6,674 | |||||||
Foshan Haitian Flavouring & Food Co., Ltd. Class “A” (Food products) | 478,001 | 7,883 | |||||||
Kweichow Moutai Co., Ltd. Class “A” (Beverages) | 21,859 | 7,031 | |||||||
Midea Group Co., Ltd. Class “A” (Household durables) | 720,700 | 8,346 | |||||||
Ping An Insurance Group Co. of China, Ltd. Class “H” (Insurance) | 1,017,500 | 7,327 | |||||||
Shenzhou International Group Holdings, Ltd. (Textiles, apparel & luxury goods) | 195,200 | 3,753 | |||||||
Tencent Holdings, Ltd. (Interactive Media & Services) | 415,900 | 24,364 | |||||||
TravelSky Technology, Ltd. Class “H” (IT services) | 2,760,000 | 4,644 | |||||||
Zhangzhou Pientzehuang Pharmaceutical Co., Ltd. Class “A” (Pharmaceuticals) | 99,300 | 6,811 | |||||||
Total China | 98,203 | ||||||||
India—22.8% | |||||||||
Asian Paints, Ltd. (Chemicals) | 141,827 | 6,457 | |||||||
Bajaj Finance, Ltd. (Consumer finance) | 65,199 | 6,112 | |||||||
Britannia Industries, Ltd. (Food products) | 119,877 | 5,828 | |||||||
Havells India, Ltd. (Electrical equipment) | 291,690 | 5,470 | |||||||
HDFC Bank, Ltd. (Banks) | 614,720 | 12,247 | |||||||
Housing Development Finance Corporation, Ltd. (Thrifts & mortgage finance) | 214,905 | 7,479 | |||||||
Infosys, Ltd. (IT services) | 637,535 | 16,235 | |||||||
* | InterGlobe Aviation, Ltd. (Airlines) | 279,240 | 7,567 | ||||||
Motherson Sumi Systems, Ltd. (Auto components) | 3,215,871 | 9,582 | |||||||
Reliance Industries, Ltd. (Oil, gas & consumable fuels) | 635,674 | 20,254 | |||||||
UPL, Ltd. (Chemicals) | 1,055,429 | 10,634 | |||||||
107,865 | |||||||||
Indonesia—3.4% | |||||||||
Bank Central Asia Tbk PT (Banks) | 21,429,100 | 10,976 | |||||||
* | Sea, Ltd.—ADR (Entertainment) | 22,944 | 5,133 | ||||||
16,109 | |||||||||
South Korea—8.0% | |||||||||
* | Coupang, Inc. (Internet & direct marketing retail) | 167,331 | 4,916 | ||||||
Douzone Bizon Co., Ltd. (Software) | 77,501 | 4,759 | |||||||
* | Kakao Corporation (Interactive Media & Services) | 69,137 | 6,543 | ||||||
* | KakaoBank Corporation (Banks) | 72,892 | 3,618 | ||||||
LG Household & Health Care, Ltd. (Personal products) | 8,526 | 7,868 | |||||||
NAVER Corporation (Interactive Media & Services) | 31,191 | 9,931 | |||||||
37,635 |
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Emerging Asia—(continued) | |||||||||
Taiwan—15.4% | |||||||||
Airtac International Group (Machinery) | 131,000 | $ | 4,830 | ||||||
E.Sun Financial Holding Co., Ltd. (Banks) | 5,401,267 | 5,476 | |||||||
eMemory Technology, Inc. (Semiconductors & semiconductor equipment) | 79,000 | 6,253 | |||||||
MediaTek, Inc. (Semiconductors & semiconductor equipment) | 351,000 | 15,097 | |||||||
Taiwan Semiconductor Manufacturing Co., Ltd.—ADR (Semiconductors & semiconductor equipment) | 343,585 | 41,337 | |||||||
72,993 | |||||||||
Emerging Latin America—18.9% | |||||||||
Argentina—5.8% | |||||||||
* | Globant S.A. (IT services)† | 38,958 | 12,236 | ||||||
* | MercadoLibre, Inc. (Internet & direct marketing retail) | 11,243 | 15,160 | ||||||
27,396 | |||||||||
Brazil—6.6% | |||||||||
B3 S.A. - Brasil Bolsa Balcao (Capital markets) | 3,022,400 | 6,045 | |||||||
* | Locaweb Servicos de Internet S.A. (IT services) | 1,392,200 | 3,289 | ||||||
Raia Drogasil S.A. (Food & staples retailing) | 722,300 | 3,151 | |||||||
* | Rumo S.A. (Road & rail) | 2,924,900 | 9,326 | ||||||
TOTVS S.A. (Software) | 1,013,100 | 5,209 | |||||||
WEG S.A. (Electrical equipment) | 749,300 | 4,437 | |||||||
31,457 | |||||||||
Mexico—5.0% | |||||||||
Grupo Aeroportuario del Pacifico S.A.B. de C.V. Class “B” (Transportation infrastructure) | 929,700 | 12,840 | |||||||
Wal-Mart de Mexico S.A.B. de C.V. (Food & staples retailing) | 2,894,000 | 10,773 | |||||||
23,613 | |||||||||
Peru—0.9% | |||||||||
Credicorp, Ltd. (Banks)† | 34,488 | 4,210 | |||||||
Uruguay—0.6% | |||||||||
* | Dlocal, Ltd. (IT services)† | 84,774 | 3,026 | ||||||
Emerging Europe, Mid-East, Africa—9.7% | |||||||||
Poland—0.9% | |||||||||
* | Allegro.eu S.A. (Internet & direct marketing retail) | 428,755 | 4,135 | ||||||
Russia—4.0% | |||||||||
HeadHunter Group plc—ADR (Professional services) | 183,540 | 9,377 | |||||||
* | Yandex N.V. Class “A” (Interactive Media & Services)† | 161,420 | 9,766 | ||||||
19,143 | |||||||||
South Africa—3.8% | |||||||||
Capitec Bank Holdings, Ltd. (Banks) | 88,570 | 11,338 | |||||||
Clicks Group, Ltd. (Food & staples retailing) | 335,209 | 6,637 | |||||||
17,975 |
See accompanying Notes to Financial Statements.
58 | Annual Report | December 31, 2021 |
Emerging Markets Leaders Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Shares or | |||||||||
Principal | |||||||||
Issuer | Amount | Value | |||||||
Common Stocks—(continued) | |||||||||
Emerging Europe, Mid-East, Africa—(continued) | |||||||||
United Arab Emirates—1.0% | |||||||||
* | Network International Holdings plc (IT services) | 1,131,599 | $ | 4,476 | |||||
Total Common Stocks—98.9% (cost $428,088) | 468,236 | ||||||||
Repurchase Agreement | |||||||||
Fixed Income Clearing Corporation, 0.000% dated 12/31/21, due 1/3/22, repurchase price $11,053, collateralized by U.S. Treasury Bond, 1.875%, due 02/15/41, valued at $11,274. | $11,053 | 11,053 | |||||||
Total Repurchase Agreement—2.3% (cost $11,053) | 11,053 | ||||||||
Total Investments—101.2% (cost $439,141) | 479,289 | ||||||||
Liabilities, plus cash and other assets—(1.2)% | (5,604 | ) | |||||||
Net assets—100.0% | $ | 473,685 |
ADR = American Depository Receipt
* = Non-income producing security
† = U.S. listed foreign security
At December 31, 2021, the Fund’s Portfolio of Investments includes the following industry categories (as a percentage of long-term investments): | ||||
Information Technology | 24.9 | % | ||
Financials | 16.0 | % | ||
Consumer Discretionary | 15.1 | % | ||
Communication Services | 11.9 | % | ||
Industrials | 11.5 | % | ||
Consumer Staples | 10.5 | % | ||
Energy | 4.3 | % | ||
Materials | 3.6 | % | ||
Health Care | 2.2 | % | ||
Total | 100.0 | % | ||
At December 31, 2021, the Fund’s Portfolio of Investments includes the following currency categories (as a percentage of long-term investments): | ||||
Indian Rupee | 23.0 | % | ||
U.S. Dollar | 22.5 | % | ||
Hong Kong Dollar | 12.4 | % | ||
Chinese Yuan Renminbi | 8.6 | % | ||
South Korean Won | 7.0 | % | ||
New Taiwan Dollar | 6.8 | % | ||
Brazilian Real | 6.7 | % | ||
Mexican Peso | 5.0 | % | ||
South African Rand | 3.8 | % | ||
Indonesian Rupiah | 2.4 | % | ||
All Other Currencies | 1.8 | % | ||
Total | 100.0 | % |
See accompanying Notes to Financial Statements.
December 31, 2021 | William Blair Funds | 59 |
60 | Annual Report | December 31, 2021 |
Emerging Markets Growth Fund
Performance Highlights (Unaudited)
Average Annual Total Returns through 12/31/2021 | ||||||||||||||||
1 Year | 3 Year | 5 Year | 10 Year | |||||||||||||
Class N | 2.97 | % | 22.75 | % | 16.58 | % | 8.88 | % | ||||||||
Class I | 3.25 | 23.07 | 16.88 | 9.16 | ||||||||||||
R6 Class | 3.37 | 23.17 | 17.00 | 9.30 | ||||||||||||
MSCI Emerging Markets IMI (net) | (0.28 | ) | 11.57 | 10.06 | 5.71 |
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are average annual total returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272, or visit our Web site at www.williamblairfunds.com. From time to time, the investment adviser may waive fees or reimburse expenses for the Fund. Without these waivers/reimbursements, performance would be lower. International investing involves special risk considerations, including currency fluctuations, lower liquidity, economic and political risk. These risks may be magnified when investing in emerging markets. Class N shares are not subject to a sales load. Class I shares are not subject to a sales load or distribution (Rule 12b-1) fees. Class R6 shares are not subject to a sales load, distribution (Rule 12b-1) fees, or sub-transfer agent fees.
The performance highlights and graph presented above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The Morgan Stanley Capital International (MSCI) Emerging Markets Investable Market Index (IMI) (net) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of emerging markets. This index approximates the minimum possible dividend reinvestment by deducting for the highest possible withholding tax rates of those markets.
This report identifies the Fund’s investments on December 31, 2021. These holdings are subject to change. Not all stocks in the Fund performed the same, nor is there any guarantee that these stocks will perform as well in the future. Market forecasts provided in this report may not necessarily come to pass.
Sector Diversification (Unaudited)
The sector diversification shown is based on the total long-term securities.
December 31, 2021 | William Blair Funds | 61 |
Emerging Markets Growth Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks | |||||||||
Emerging Asia—86.1% | |||||||||
China—22.1% | |||||||||
ANTA Sports Products, Ltd. (Textiles, apparel & luxury goods) | 381,000 | $ | 5,712 | ||||||
Bank of Ningbo Co., Ltd. Class “A” (Banks) | 852,400 | 5,120 | |||||||
Centre Testing International Group Co., Ltd. Class “A” (Professional services) | 905,500 | 3,818 | |||||||
China Meidong Auto Holdings, Ltd. (Specialty retail) | 952,000 | 4,908 | |||||||
China Merchants Bank Co., Ltd. Class “H” (Banks) | 1,877,000 | 14,575 | |||||||
China Tourism Group Duty Free Corporation, Ltd. Class “A” (Specialty retail) | 75,658 | 2,605 | |||||||
Contemporary Amperex Technology Co., Ltd. Class “A” (Electrical equipment) | 241,200 | 22,253 | |||||||
East Money Information Co., Ltd. Class “A” (Capital markets) | 912,500 | 5,313 | |||||||
* | JD.com, Inc. Class “A” (Internet & direct marketing retail) | 354,550 | 12,459 | ||||||
* | Kingdee International Software Group Co., Ltd. (Software) | 626,000 | 1,927 | ||||||
Li Ning Co., Ltd. (Textiles, apparel & luxury goods) | 1,156,500 | 12,659 | |||||||
* | Meituan Class “B” (Internet & direct marketing retail) | 230,400 | 6,660 | ||||||
NAURA Technology Group Co., Ltd. Class “A” (Semiconductors & semiconductor equipment) | 59,600 | 3,245 | |||||||
NetEase, Inc. (Entertainment) | 224,100 | 4,527 | |||||||
Proya Cosmetics Co., Ltd. Class “A” (Personal products) | 85,600 | 2,798 | |||||||
Shenzhen Inovance Technology Co., Ltd. Class “A” (Machinery) | 692,064 | 7,449 | |||||||
Shenzhou International Group Holdings, Ltd. (Textiles, apparel & luxury goods) | 313,000 | 6,017 | |||||||
Silergy Corporation (Semiconductors & semiconductor equipment) | 135,000 | 24,519 | |||||||
Sungrow Power Supply Co., Ltd. Class “A” (Electrical equipment) | 196,993 | 4,507 | |||||||
Suzhou Maxwell Technologies Co., Ltd. Class “A” (Electrical equipment) | 46,392 | 4,675 | |||||||
Tencent Holdings, Ltd. (Interactive Media & Services) | 561,160 | 32,874 | |||||||
Wuliangye Yibin Co., Ltd. Class “A” (Beverages) | 135,094 | 4,720 | |||||||
WuXi AppTec Co., Ltd. Class “H” (Life sciences tools & services) | 411,560 | 7,125 | |||||||
* | Wuxi Biologics Cayman, Inc. (Life sciences tools & services) | 793,500 | 9,418 | ||||||
Wuxi Lead Intelligent Equipment Co., Ltd. Class “A” (Electronic equipment, instruments & components) | 420,905 | 4,911 | |||||||
Zhangzhou Pientzehuang Pharmaceutical Co., Ltd. Class “A” (Pharmaceuticals) | 63,029 | 4,323 |
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Emerging Asia—(continued) | |||||||||
China—(continued) | |||||||||
Zhejiang Jingsheng Mechanical & Electrical Co., Ltd. Class “A” (Semiconductors & semiconductor equipment) | 443,490 | $ | 4,836 | ||||||
Zhongsheng Group Holdings, Ltd. (Specialty retail) | 872,000 | 6,799 | |||||||
230,752 | |||||||||
India—24.0% | |||||||||
Aarti Industries, Ltd. (Chemicals) | 252,796 | 3,407 | |||||||
* | Affle India, Ltd. (Media) | 174,909 | 2,654 | ||||||
* | Amber Enterprises India, Ltd. (Household durables) | 62,829 | 2,808 | ||||||
* | APL Apollo Tubes, Ltd. (Metals & mining) | 312,253 | 4,196 | ||||||
Apollo Hospitals Enterprise, Ltd. (Health care providers & services) | 136,296 | 9,213 | |||||||
Asian Paints, Ltd. (Chemicals) | 172,172 | 7,838 | |||||||
Astral Poly Technik, Ltd. (Building products) | 127,410 | 3,922 | |||||||
Atul, Ltd. (Chemicals) | 21,684 | 2,636 | |||||||
Bajaj Finance, Ltd. (Consumer finance) | 88,876 | 8,331 | |||||||
Balkrishna Industries, Ltd. (Auto components) | 122,155 | 3,812 | |||||||
Coforge, Ltd. (IT services) | 64,222 | 5,071 | |||||||
Computer Age Management Services, Ltd. (IT services) | 91,778 | 3,299 | |||||||
Crompton Greaves Consumer Electricals, Ltd. (Household durables) | 686,627 | 4,036 | |||||||
Dabur India, Ltd. (Personal products) | 484,334 | 3,776 | |||||||
Divi’s Laboratories, Ltd. (Life sciences tools & services) | 85,663 | 5,390 | |||||||
Dixon Technologies India, Ltd. (Household durables) | 77,553 | 5,746 | |||||||
Dr. Lal PathLabs, Ltd. (Health care providers & services) | 78,462 | 4,028 | |||||||
Escorts, Ltd. (Machinery) | 132,047 | 3,382 | |||||||
* | Godrej Properties, Ltd. (Real estate management & development) | 125,459 | 3,159 | ||||||
Gujarat Gas, Ltd. (Gas utilities) | 275,341 | 2,351 | |||||||
Havells India, Ltd. (Electrical equipment) | 319,373 | 5,990 | |||||||
HDFC Bank, Ltd. (Banks) | 796,869 | 15,876 | |||||||
Hindustan Unilever, Ltd. (Household products) | 112,855 | 3,584 | |||||||
Housing Development Finance Corporation, Ltd. (Thrifts & mortgage finance) | 373,354 | 12,993 | |||||||
Indian Energy Exchange Ltd. (Capital markets) | 1,140,936 | 3,880 | |||||||
Indraprastha Gas, Ltd. (Gas utilities) | 355,601 | 2,248 | |||||||
Info Edge India, Ltd. (Interactive Media & Services) | 66,700 | 4,992 | |||||||
JK Cement, Ltd. (Construction materials) | 62,108 | 2,816 | |||||||
Kajaria Ceramics, Ltd. (Building products) | 200,153 | 3,460 |
See accompanying Notes to Financial Statements.
62 | Annual Report | December 31, 2021 |
Emerging Markets Growth Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Emerging Asia—(continued) | |||||||||
India—(continued) | |||||||||
Larsen & Toubro Infotech, Ltd. (IT services) | 58,782 | $ | 5,800 | ||||||
Metropolis Healthcare, Ltd. (Health care providers & services) | 69,467 | 3,216 | |||||||
Minda Industries, Ltd. (Auto components) | 152,548 | 2,504 | |||||||
Nestle India, Ltd. (Food products) | 12,274 | 3,251 | |||||||
PI Industries, Ltd. (Chemicals) | 71,518 | 2,917 | |||||||
Pidilite Industries, Ltd. (Chemicals) | 170,692 | 5,656 | |||||||
Polycab India, Ltd. (Electrical equipment) | 81,397 | 2,697 | |||||||
Reliance Industries, Ltd. (Oil, gas & consumable fuels) | 931,469 | 29,679 | |||||||
SRF, Ltd. (Chemicals) | 237,328 | 7,720 | |||||||
Tata Consultancy Services, Ltd. (IT services) | 377,572 | 18,997 | |||||||
Tata Consumer Products, Ltd. (Food products) | 341,058 | 3,412 | |||||||
Tata Elxsi, Ltd. (Software) | 68,436 | 5,413 | |||||||
Trent, Ltd. (Multiline retail) | 180,185 | 2,579 | |||||||
UPL, Ltd. (Chemicals) | 473,645 | 4,772 | |||||||
Varun Beverages, Ltd. (Beverages) | 274,126 | 3,253 | |||||||
Voltas, Ltd. (Construction & engineering) | 191,858 | 3,149 | |||||||
249,909 | |||||||||
Indonesia—3.2% | |||||||||
Bank Central Asia Tbk PT (Banks) | 25,615,095 | 13,120 | |||||||
* | Bank Jago Tbk PT (Banks) | 3,398,500 | 3,815 | ||||||
Bank Rakyat Indonesia Persero Tbk PT (Banks) | 19,022,951 | 5,486 | |||||||
* | Sea, Ltd.—ADR (Entertainment) | 50,000 | 11,185 | ||||||
33,606 | |||||||||
Philippines—0.3% | |||||||||
International Container Terminal Services, Inc. (Transportation infrastructure) | 852,800 | 3,345 | |||||||
South Korea—12.4% | |||||||||
Chunbo Co., Ltd. (Chemicals) | 9,413 | 2,761 | |||||||
Ecopro BM Co., Ltd. (Electrical equipment) | 5,707 | 2,404 | |||||||
* | Hansol Chemical Co., Ltd. (Chemicals) | 15,222 | 3,912 | ||||||
* | JYP Entertainment Corporation (Entertainment) | 76,753 | 3,274 | ||||||
* | Kakao Corporation (Interactive Media & Services) | 182,556 | 17,277 | ||||||
* | KakaoBank Corporation (Banks) | 107,034 | 5,312 | ||||||
* | LEENO Industrial, Inc. (Semiconductors & semiconductor equipment) | 27,889 | 4,652 | ||||||
* | NAVER Corporation (Interactive Media & Services) | 50,056 | 15,938 | ||||||
* | NICE Information Service Co., Ltd. (Professional services) | 52,250 | 791 | ||||||
* | PI Advanced Materials Co., Ltd. (Chemicals) | 65,378 | 3,030 |
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Emerging Asia—(continued) | |||||||||
South Korea—(continued) | |||||||||
* | Samsung Biologics Co., Ltd. (Life sciences tools & services) | 7,301 | $ | 5,546 | |||||
Samsung Electronics Co., Ltd. (Technology hardware, storage & peripherals) | 813,879 | 53,608 | |||||||
* | Samsung SDI Co., Ltd. (Electronic equipment, instruments & components) | 19,336 | 10,654 | ||||||
129,159 | |||||||||
Taiwan—23.3% | |||||||||
Accton Technology Corporation (Communications equipment) | 320,000 | 3,007 | |||||||
Advantech Co., Ltd. (Technology hardware, storage & peripherals) | 294,766 | 4,224 | |||||||
Airtac International Group (Machinery) | 60,852 | 2,243 | |||||||
ASMedia Technology, Inc. (Semiconductors & semiconductor equipment) | 52,000 | 3,421 | |||||||
ASPEED Technology, Inc. (Semiconductors & semiconductor equipment) | 105,000 | 13,530 | |||||||
Chailease Holding Co., Ltd. (Diversified financial services) | 1,405,800 | 13,389 | |||||||
Chroma ATE, Inc. (Electronic equipment, instruments & components) | 454,000 | 3,282 | |||||||
E.Sun Financial Holding Co., Ltd. (Banks) | 7,701,646 | 7,808 | |||||||
Elite Material Co., Ltd. (Electronic equipment, instruments & components) . | 432,000 | 4,341 | |||||||
eMemory Technology, Inc. (Semiconductors & semiconductor equipment) | 86,000 | 6,807 | |||||||
Feng TAY Enterprise Co., Ltd. (Textiles, apparel & luxury goods) | 383,000 | 3,205 | |||||||
Globalwafers Co., Ltd. (Semiconductors & semiconductor equipment) | 120,000 | 3,852 | |||||||
Lotes Co., Ltd. (Electronic equipment, instruments & components) | 167,459 | 4,606 | |||||||
MediaTek, Inc. (Semiconductors & semiconductor equipment) | 984,000 | 42,323 | |||||||
momo.com, Inc. (Internet & direct marketing retail) | 84,600 | 4,969 | |||||||
Parade Technologies, Ltd. (Semiconductors & semiconductor equipment) | 131,000 | 10,014 | |||||||
Poya International Co., Ltd. (Multiline retail) | 270 | 4 | |||||||
Realtek Semiconductor Corporation (Semiconductors & semiconductor equipment) | 425,000 | 8,910 | |||||||
Sinbon Electronics Co., Ltd. (Electronic equipment, instruments & components) | 390,000 | 4,003 | |||||||
Taiwan Semiconductor Manufacturing Co., Ltd. (Semiconductors & semiconductor equipment) | 931,000 | 20,695 | |||||||
Taiwan Semiconductor Manufacturing Co., Ltd.—ADR (Semiconductors & semiconductor equipment) | 558,267 | 67,165 |
See accompanying Notes to Financial Statements.
December 31, 2021 | William Blair Funds | 63 |
Emerging Markets Growth Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Emerging Asia—(continued) | |||||||||
Taiwan—(continued) | |||||||||
Voltronic Power Technology Corporation (Electrical equipment) | 105,586 | $ | 5,896 | ||||||
Wiwynn Corporation (Technology hardware, storage & peripherals) | 113,000 | 4,554 | |||||||
242,248 | |||||||||
Thailand—0.3% | |||||||||
Com7 PCL Class “F” (Specialty retail) | 1,382,500 | 3,383 | |||||||
Vietnam—0.5% | |||||||||
Hoa Phat Group JSC (Metals & mining) | 2,512,901 | 5,116 | |||||||
Emerging Europe, Mid-East, Africa—6.6% | |||||||||
Hungary—0.9% | |||||||||
* | OTP Bank Nyrt (Banks) | 182,480 | 9,336 | ||||||
Kazakhstan—0.4% | |||||||||
Kaspi.KZ JSC—GDR (Consumer finance) | 39,051 | 4,530 | |||||||
Kenya—0.3% | |||||||||
Safaricom plc (Wireless telecommunication services) | 7,825,154 | 2,628 | |||||||
Poland—0.8% | |||||||||
* | Dino Polska S.A. (Food & staples retailing) | 95,808 | 8,734 | ||||||
Russia—2.7% | |||||||||
TCS Group Holding plc—GDR (Banks) | 175,807 | 14,824 | |||||||
*Yandex N.V. Class “A” (Interactive Media & Services)† | 226,690 | 13,714 | |||||||
28,538 | |||||||||
South Africa—1.5% | |||||||||
Capitec Bank Holdings, Ltd. (Banks) | 86,973 | 11,133 | |||||||
Clicks Group, Ltd. (Food & staples retailing) | 202,404 | 4,008 | |||||||
15,141 | |||||||||
Emerging Latin America—6.4% | |||||||||
Argentina—2.3% | |||||||||
* | Globant S.A. (IT services)† | 33,365 | 10,480 | ||||||
* | MercadoLibre, Inc. (Internet & direct marketing retail) | 10,150 | 13,686 | ||||||
24,166 | |||||||||
Brazil—2.5% | |||||||||
Localiza Rent a Car S.A. (Road & rail) | 385,200 | 3,665 | |||||||
* | Locaweb Servicos de Internet S.A. (IT services) | 758,200 | 1,791 | ||||||
Patria Investments, Ltd. Class “A” (Capital markets)† | 181,749 | 2,944 |
Shares or | |||||||||
Principal | |||||||||
Issuer | Amount | Value | |||||||
Common Stocks—(continued) | |||||||||
Emerging Latin America—(continued) | |||||||||
Brazil—(continued) | |||||||||
Pet Center Comercio e Participacoes S.A. (Specialty retail) | 563,991 | $ | 1,658 | ||||||
Raia Drogasil S.A. (Food & staples retailing) | 1,006,600 | 4,391 | |||||||
TOTVS S.A. (Software) | 812,300 | 4,177 | |||||||
Vinci Partners Investments, Ltd. Class “A” (Capital markets)† | 204,919 | 2,193 | |||||||
WEG S.A. (Electrical equipment) | 889,740 | 5,268 | |||||||
26,087 | |||||||||
Mexico—1.2% | |||||||||
Wal-Mart de Mexico S.A.B. de C.V. (Food & staples retailing) | 3,197,000 | 11,901 | |||||||
Uruguay—0.4% | |||||||||
* | Dlocal, Ltd. (IT services)† | 122,715 | 4,380 | ||||||
Total Common Stocks—99.1% (cost $729,901) | 1,032,959 | ||||||||
Repurchase Agreement | |||||||||
Fixed Income Clearing Corporation, 0.000% dated 12/31/21, due 1/3/22, repurchase price $13,127, collateralized by U.S. Treasury Bond, 1.875%, due 02/15/41, valued at $13,389 | $ | 13,127 | 13,127 | ||||||
Total Repurchase Agreement—1.3% (cost $13,127) | 13,127 | ||||||||
Total Investments—100.4% (cost $743,028) | 1,046,086 | ||||||||
Liabilities, plus cash and other assets—(0.4)% | (4,248 | ) | |||||||
Net assets—100.0% | $ | 1,041,838 |
ADR = American Depository Receipt
GDR = Global Depository Receipt
* = Non-income producing security
† = U.S. listed foreign security
See accompanying Notes to Financial Statements.
64 | Annual Report | December 31, 2021 |
Emerging Markets Growth Fund
Portfolio of Investments, December 31, 2021
At December 31, 2021, the Fund’s Portfolio of Investments includes the following industry categories (as a percentage of long-term investments): | ||||
Information Technology | 36.0 | % | ||
Financials | 15.5 | % | ||
Communication Services | 10.6 | % | ||
Consumer Discretionary | 10.3 | % | ||
Industrials | 8.6 | % | ||
Materials | 5.5 | % | ||
Consumer Staples | 5.2 | % | ||
Health Care | 4.7 | % | ||
Energy | 2.9 | % | ||
Utilities | 0.4 | % | ||
Real Estate | 0.3 | % | ||
Total | 100.0 | % | ||
At December 31, 2021, the Fund’s Portfolio of Investments includes the following currency categories (as a percentage of long-term investments): | ||||
Indian Rupee | 24.2 | % | ||
New Taiwan Dollar | 19.3 | % | ||
U.S. Dollar | 14.0 | % | ||
South Korean Won | 12.5 | % | ||
Hong Kong Dollar | 12.2 | % | ||
Chinese Yuan Renminbi | 7.8 | % | ||
Indonesian Rupiah | 2.2 | % | ||
Brazilian Real | 2.0 | % | ||
South African Rand | 1.5 | % | ||
Mexican Peso | 1.2 | % | ||
All Other Currencies | 3.1 | % | ||
Total | 100.0 | % |
See accompanying Notes to Financial Statements.
December 31, 2021 | William Blair Funds | 65 |
66 | Annual Report | December 31, 2021 |
Emerging Markets Small Cap Growth Fund
Performance Highlights (Unaudited)
Average Annual Total Returns through 12/31/2021 | ||||||||||||||||||||
1 Year | 3 Year | 5 Year | 10 Year | Since Inception(a) | ||||||||||||||||
Class N | 15.23 | % | 22.41 | % | 14.45 | % | 12.02 | % | — | % | ||||||||||
Class I | 15.51 | 22.69 | 14.76 | 12.33 | — | |||||||||||||||
Class R6 | 15.58 | 22.77 | 14.84 | — | 10.34 | |||||||||||||||
MSCI Emerging Markets Small Cap Index (net) | 18.75 | 16.46 | 11.47 | 7.42 | 6.03 |
(a) | Since inception is for the period from December 20, 2012 (Commencement of Operations) to December 31, 2021. |
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are average annual total returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272, or visit our Web site at www.williamblairfunds.com. From time to time, the investment adviser may waive fees or reimburse expenses for the Fund. Without these waivers/reimbursements, performance would be lower. International investing involves special risk considerations, including currency fluctuations, lower liquidity, economic and political risk. These risks may be magnified when investing in emerging markets. Smaller capitalization stocks are also more sensitive to purchase/sale transactions and changes in the issuer’s financial condition. Class N shares are not subject to a sales load. Class I shares are not subject to a sales load or distribution (Rule 12b-1) fees. Class R6 shares are not subject to a sales load, distribution (Rule 12b-1) fees, or sub-transfer agent fees.
The performance highlights and graph presented above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The Morgan Stanley Capital International (MSCI) Emerging Markets Small Cap Index (net) is a free float-adjusted market capitalization index that is designed to measure the equity market performance of emerging markets. This index approximates the minimum possible dividend reinvestment by deducting for the highest possible withholding tax rates of those markets.
This report identifies the Fund’s investments on December 31, 2021. These holdings are subject to change. Not all stocks in the Fund performed the same, nor is there any guarantee that these stocks will perform as well in the future. Market forecasts provided in this report may not necessarily come to pass.
Sector Diversification (Unaudited)
The sector diversification shown is based on the total long-term securities.
December 31, 2021 | William Blair Funds | 67 |
Emerging Markets Small Cap Growth Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks | |||||||||
Emerging Asia—82.5% | |||||||||
Cambodia—0.1% | |||||||||
NagaCorp, Ltd. (Hotels, restaurants & leisure) | 840,000 | $ | 733 | ||||||
China—10.6% | |||||||||
By-health Co., Ltd. Class “A” (Personal products) | 504,900 | 2,136 | |||||||
Centre Testing International Group Co., Ltd. Class “A” (Professional services) | 2,503,105 | 10,553 | |||||||
Chacha Food Co., Ltd. Class “A” (Food products) | 591,071 | 5,691 | |||||||
Changzhou Xingyu Automotive Lighting Systems Co., Ltd. Class “A” (Auto components) | 156,617 | 5,019 | |||||||
China Lesso Group Holdings, Ltd. (Building products) | 1,254,000 | 1,801 | |||||||
China Meidong Auto Holdings, Ltd. (Specialty retail) | 960,000 | 4,949 | |||||||
CIFI Ever Sunshine Services Group, Ltd. (Real estate management & development) | 3,104,000 | 4,809 | |||||||
Estun Automation Co., Ltd. Class “A” (Machinery) | 450,800 | 1,835 | |||||||
Jiumaojiu International Holdings, Ltd. (Hotels, restaurants & leisure) | 1,328,000 | 2,333 | |||||||
JNBY Design, Ltd. (Textiles, apparel & luxury goods) | 699,000 | 1,112 | |||||||
Proya Cosmetics Co., Ltd. Class “A” (Personal products) | 343,545 | 11,229 | |||||||
* | Weimob, Inc. (Software) | 1,506,000 | 1,524 | ||||||
52,991 | |||||||||
India—36.2% | |||||||||
Aarti Industries, Ltd. (Chemicals) | 571,518 | 7,703 | |||||||
* | Aavas Financiers, Ltd. (Thrifts & mortgage finance) | 70,280 | 2,458 | ||||||
* | Affle India, Ltd. (Media) | 176,809 | 2,683 | ||||||
* | Amber Enterprises India, Ltd. (Household durables) | 55,862 | 2,497 | ||||||
* | APL Apollo Tubes, Ltd. (Metals & mining) | 380,086 | 5,108 | ||||||
Apollo Hospitals Enterprise, Ltd. (Health care providers & services) | 31,075 | 2,101 | |||||||
Astral Poly Technik, Ltd. (Building products) | 274,533 | 8,450 | |||||||
Atul, Ltd. (Chemicals) | 28,790 | 3,500 | |||||||
* | AU Small Finance Bank Ltd. (Banks) | 390,953 | 5,465 | ||||||
Balkrishna Industries, Ltd. (Auto components) | 79,346 | 2,476 | |||||||
Bata India, Ltd. (Textiles, apparel & luxury goods) | 84,740 | 2,133 | |||||||
Berger Paints India, Ltd. (Chemicals) | 115,323 | 1,198 | |||||||
Cholamandalam Investment and Finance Co., Ltd. (Consumer finance) | 631,107 | 4,417 | |||||||
* | Clean Science & Technology, Ltd. (Chemicals) | 77,665 | 2,604 | ||||||
Coforge, Ltd. (IT services) | 37,371 | 2,951 |
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Emerging Asia—(continued) | |||||||||
India—(continued) | |||||||||
Computer Age Management Services, Ltd. (IT services) | 60,483 | $ | 2,174 | ||||||
Crompton Greaves Consumer Electricals, Ltd. (Household durables) | 455,016 | 2,674 | |||||||
Dixon Technologies India, Ltd. (Household durables) | 73,691 | 5,460 | |||||||
Dr. Lal PathLabs, Ltd. (Health care providers & services) | 99,116 | 5,088 | |||||||
Endurance Technologies, Ltd. (Auto components) | 58,228 | 1,320 | |||||||
Firstsource Solutions, Ltd. (IT services) | 972,955 | 2,395 | |||||||
* | Godrej Properties, Ltd. (Real estate management & development) | 190,150 | 4,788 | ||||||
Havells India, Ltd. (Electrical equipment) | 182,448 | 3,422 | |||||||
IndiaMart InterMesh Ltd. (Trading companies & distributors) | 8,155 | 710 | |||||||
Indian Energy Exchange Ltd. (Capital markets) | 748,423 | 2,545 | |||||||
JK Cement, Ltd. (Construction materials) | 92,838 | 4,209 | |||||||
Kajaria Ceramics, Ltd. (Building products) | 257,886 | 4,458 | |||||||
Kansai Nerolac Paints, Ltd. (Chemicals) | 198,639 | 1,565 | |||||||
KEC International, Ltd. (Construction & engineering) | 123,816 | 798 | |||||||
KEI Industries, Ltd. (Electrical equipment) | 323,223 | 5,083 | |||||||
Larsen & Toubro Infotech Ltd. (IT services) | 73,853 | 7,287 | |||||||
Laurus Labs Ltd. (Pharmaceuticals) | 263,001 | 1,909 | |||||||
Metropolis Healthcare, Ltd. (Health care providers & services) | 93,514 | 4,330 | |||||||
Minda Industries, Ltd. (Auto components) | 87,742 | 1,440 | |||||||
Motherson Sumi Systems, Ltd. (Auto components) | 461,744 | 1,376 | |||||||
Navin Fluorine International, Ltd. (Chemicals) | 26,943 | 1,515 | |||||||
* | Oberoi Realty, Ltd. (Real estate management & development) | 514,572 | 5,953 | ||||||
PI Industries, Ltd. (Chemicals) | 41,906 | 1,709 | |||||||
Pidilite Industries, Ltd. (Chemicals) | 25,569 | 847 | |||||||
Polycab India, Ltd. (Electrical equipment) | 122,961 | 4,074 | |||||||
Radico Khaitan, Ltd. (Beverages) | 512,071 | 8,494 | |||||||
Relaxo Footwears, Ltd. (Textiles, apparel & luxury goods) | 314,048 | 5,513 | |||||||
SRF, Ltd. (Chemicals) | 178,392 | 5,803 | |||||||
Sundram Fasteners, Ltd. (Auto components) | 161,800 | �� | 1,974 | ||||||
Tata Elxsi, Ltd. (Software) | 51,445 | 4,069 | |||||||
Trent, Ltd. (Multiline retail) | 517,485 | 7,406 | |||||||
* | V-Mart Retail, Ltd. (Multiline retail) | 70,826 | 3,553 | ||||||
Varun Beverages, Ltd. (Beverages) | 727,288 | 8,630 | |||||||
Vinati Organics, Ltd. (Chemicals) | 100,582 | 2,688 | |||||||
181,003 |
See accompanying Notes to Financial Statements.
68 | Annual Report | December 31, 2021 |
Emerging Markets Small Cap Growth Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Emerging Asia—(continued) | |||||||||
Indonesia—1.3% | |||||||||
PT Bank Tabungan Pensiunan Nasional Syariah Tbk (Banks) | 25,451,900 | $ | 6,393 | ||||||
Malaysia—2.6% | |||||||||
Inari Amertron Bhd (Electronic equipment, instruments & components) | 8,499,700 | 8,161 | |||||||
MR DIY Group M Bhd (Specialty retail) | 3,639,800 | 3,154 | |||||||
UWC BHD (Machinery) | 1,271,100 | 1,895 | |||||||
13,210 | |||||||||
Philippines—2.7% | |||||||||
International Container Terminal Services, Inc. (Transportation infrastructure) | 1,823,910 | 7,154 | |||||||
Wilcon Depot, Inc. (Specialty retail) | 10,647,600 | 6,368 | |||||||
13,522 | |||||||||
South Korea—8.8% | |||||||||
Chunbo Co., Ltd. (Chemicals) | 11,626 | 3,409 | |||||||
* | Doosan Fuel Cell Co., Ltd. (Electrical equipment) | 18,733 | 756 | ||||||
* | F&F Co., Ltd. (Textiles, apparel & luxury goods) | 19,497 | 15,499 | ||||||
Hansol Chemical Co., Ltd. (Chemicals) | 33,791 | 8,684 | |||||||
LEENO Industrial, Inc. (Semiconductors & semiconductor equipment) | 49,499 | 8,257 | |||||||
* | NHN KCP Corporation (IT services) | 85,136 | 2,174 | ||||||
NICE Information Service Co., Ltd. (Professional services) | 168,474 | 2,551 | |||||||
* | PI Advanced Materials Co., Ltd. (Chemicals) | 58,761 | 2,724 | ||||||
44,054 | |||||||||
Taiwan—17.1% | |||||||||
Airtac International Group (Machinery) | 67,158 | 2,476 | |||||||
Alchip Technologies, Ltd. (Semiconductors & semiconductor equipment) | 91,000 | 3,355 | |||||||
ASMedia Technology, Inc. (Semiconductors & semiconductor equipment) | 41,000 | 2,697 | |||||||
ASPEED Technology, Inc. (Semiconductors & semiconductor equipment) | 144,000 | 18,555 | |||||||
Elite Material Co., Ltd. (Electronic equipment, instruments & components) | 695,000 | 6,983 | |||||||
eMemory Technology, Inc. (Semiconductors & semiconductor equipment) | 83,000 | 6,570 | |||||||
Lotes Co., Ltd. (Electronic equipment, instruments & components) | 333,831 | 9,182 | |||||||
Makalot Industrial Co., Ltd. (Textiles, apparel & luxury goods) | 436,000 | 3,893 | |||||||
momo.com, Inc. (Internet & direct marketing retail) | 116,600 | 6,848 | |||||||
Parade Technologies, Ltd. (Semiconductors & semiconductor equipment) | 132,000 | 10,091 | |||||||
RichWave Technology Corporation (Semiconductors & semiconductor equipment) | 22,000 | 217 |
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Emerging Asia—(continued) | |||||||||
Taiwan—(continued) | |||||||||
Sinbon Electronics Co., Ltd. (Electronic equipment, instruments & components) | 745,000 | $ | 7,647 | ||||||
Sporton International, Inc. (Professional services) | 152,500 | 1,196 | |||||||
Voltronic Power Technology Corporation (Electrical equipment) | 100,507 | 5,613 | |||||||
85,323 | |||||||||
Thailand—2.5% | |||||||||
Carabao Group PCL Class “F” (Beverages) | 119,800 | 429 | |||||||
Com7 PCL Class “F” (Specialty retail) | 3,635,300 | 8,896 | |||||||
Muangthai Capital PCL (Consumer finance) | 1,907,800 | 3,355 | |||||||
12,680 | |||||||||
Vietnam—0.6% | |||||||||
Hoa Phat Group JSC (Metals & mining) | 1,420,020 | 2,891 | |||||||
Emerging Europe, Mid-East, Africa—9.3% | |||||||||
Greece—0.5% | |||||||||
Terna Energy S.A. (Independent power & renewable electricity producers) | 163,027 | 2,521 | |||||||
Kenya—1.0% | |||||||||
Safaricom plc (Wireless telecommunication services) | 14,464,000 | 4,858 | |||||||
Lithuania—0.1% | |||||||||
* | Baltic Classifieds Group plc (Interactive Media & Services) | 193,444 | 662 | ||||||
Poland—2.3% | |||||||||
* | Dino Polska S.A. (Food & staples retailing) | 107,866 | 9,833 | ||||||
ING Bank Slaski S.A. (Banks) | 26,459 | 1,754 | |||||||
11,587 | |||||||||
Romania—0.5% | |||||||||
Banca Transilvania S.A. (Banks) | 4,220,491 | 2,505 | |||||||
Russia—2.7% | |||||||||
* | Cian plc—ADR (Interactive Media & Services) | 286,509 | 3,533 | ||||||
HeadHunter Group plc—ADR (Professional services) | 171,284 | 8,751 | |||||||
TCS Group Holding plc—GDR (Banks) | 15,162 | 1,278 | |||||||
13,562 | |||||||||
South Africa—1.7% | |||||||||
Clicks Group, Ltd. (Food & staples retailing) | 68,963 | 1,366 | |||||||
Transaction Capital, Ltd. (Consumer finance) | 2,463,431 | 6,961 | |||||||
8,327 | |||||||||
United Arab Emirates—0.5% | |||||||||
Abu Dhabi National Oil Co. for Distribution PJSC (Specialty retail) | 2,263,312 | 2,631 |
See accompanying Notes to Financial Statements.
December 31, 2021 | William Blair Funds | 69 |
Emerging Markets Small Cap Growth Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Shares or Principal Amount | Value | |||||||
Common Stocks—(continued) | |||||||||
Emerging Latin America—8.3% | |||||||||
Brazil—5.1% | |||||||||
* | Aeris Industria E Comercio De Equipamentos Para Geracao De Energia S.A. (Electrical equipment) | 643,400 | $ | 757 | |||||
Arezzo Industria e Comercio S.A. (Textiles, apparel & luxury goods) | 166,400 | 2,293 | |||||||
* | Azul S.A.—ADR (Airlines) | 83,835 | 1,107 | ||||||
Cyrela Brazil Realty S.A. Empreendimentos e Participacoes (Household durables) | 153,300 | 434 | |||||||
* | Grupo SBF S.A. (Specialty retail) | 264,900 | 1,070 | ||||||
* | Infracommerce CXAAS S.A. (Interactive Media & Services) | 665,600 | 2,091 | ||||||
* | Locaweb Servicos de Internet S.A. (IT services) | 1,296,678 | 3,064 | ||||||
Pet Center Comercio e Participacoes S.A. (Specialty retail) | 1,588,306 | 4,668 | |||||||
* | Sequoia Logistica e Transportes S.A. (Air freight & logistics) | 656,400 | 1,666 | ||||||
TOTVS S.A. (Software) | 1,612,600 | 8,292 | |||||||
25,442 | |||||||||
Mexico—2.4% | |||||||||
Grupo Aeroportuario del Centro Norte S.A.B. de C.V. (Transportation infrastructure) | 684,299 | 4,599 | |||||||
Grupo Aeroportuario del Sureste S.A.B. de C.V. Class “B” (Transportation infrastructure) | 370,790 | 7,644 | |||||||
12,243 | |||||||||
Uruguay—0.8% | |||||||||
* | Dlocal, Ltd. (IT services)† | 107,563 | 3,839 | ||||||
Total Common Stocks—100.1% (cost $407,007) | 500,977 | ||||||||
Repurchase Agreement | |||||||||
Fixed Income Clearing Corporation, 0.000% dated 12/31/21, due 1/3/22, repurchase price $2,343, collateralized by U.S. Treasury Bond, 1.875%, due 02/15/41, valued at $2,390. | $ | 2,343 | 2,343 | ||||||
Total Repurchase Agreement—0.5% (cost $2,343) | 2,343 | ||||||||
Total Investments—100.6% (cost $409,350) | 503,320 | ||||||||
Liabilities, plus cash and other assets—(0.6)% | (2,912 | ) | |||||||
Net assets—100.0% | $ | 500,408 |
ADR = American Depository Receipt
GDR = Global Depository Receipt
* = Non-income producing security
† = U.S. listed foreign security
At December 31, 2021, the Fund’s Portfolio of Investments includes the following industry categories (as a percentage of long-term investments):
Information Technology | 23.9% | |
Consumer Discretionary | 21.5% | |
Industrials | 17.4% | |
Materials | 11.2% | |
Consumer Staples | 9.5% | |
Financials | 7.4% | |
Real Estate | 3.1% | |
Communication Services | 2.8% | |
Health Care | 2.7% | |
Utilities | 0.5% | |
Total | 100.0% |
At December 31, 2021, the Fund’s Portfolio of Investments includes the following currency categories (as a percentage of long-term investments):
Indian Rupee | 36.1% | |
New Taiwan Dollar | 17.0% | |
South Korean Won | 8.8% | |
Chinese Yuan Renminbi | 7.3% | |
Brazilian Real | 4.9% | |
U.S. Dollar | 3.7% | |
Hong Kong Dollar | 3.5% | |
Philippine Peso | 2.7% | |
Malaysian Ringgit | 2.6% | |
Thai Baht | 2.5% | |
Mexican Peso | 2.4% | |
Polish Zloty | 2.3% | |
South African Rand | 1.7% | |
Indonesian Rupiah | 1.3% | |
All Other Currencies | 3.2% | |
Total | 100.0% |
See accompanying Notes to Financial Statements.
70 | Annual Report | December 31, 2021 |
December 31, 2021 | William Blair Funds | 71 |
China Growth Fund
Performance Highlights (Unaudited)
Average Annual Total Returns through 12/31/2021 | ||||
Since Inception(a) | ||||
Class I | (4.40 | )% | ||
Class R6 | (4.40 | ) | ||
MSCI China All Shares Index (net) | (3.21 | ) |
(a) | Since inception is for the period from August 27, 2021 (Commencement of Operations) to December 31, 2021. |
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are average annual total returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272, or visit our Web site at www.williamblairfunds.com. From time to time, the investment adviser may waive fees or reimburse expenses for the Fund. Without these waivers/reimbursements, performance would be lower. International investing involves special risk considerations, including currency fluctuations, lower liquidity, economic and political risk. These risks may be magnified when investing in emerging markets. Smaller capitalization stocks are also more sensitive to purchase/sale transactions and changes in the issuer’s financial condition. Class I shares are not subject to a sales load or distribution (Rule 12b-1) fees. Class R6 shares are not subject to a sales load, distribution (Rule 12b-1) fees, or sub-transfer agent fees.
The performance highlights and graph presented above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The MSCI China All Shares Index (net) captures large and mid-cap representation across China A-shares, B-shares, H-shares, Red-chips, P-chips, and foreign listings. The index aims to reflect the opportunity set of China share classes listed in Hong Kong, Shanghai, Shenzhen, and outside of China. The Index is unmanaged, does not incur fees or expenses, and cannot be invested in directly.
This report identifies the Fund’s investments on December 31, 2021. These holdings are subject to change. Not all stocks in the Fund performed the same, nor is there any guarantee that these stocks will perform as well in the future. Market forecasts provided in this report may not necessarily come to pass.
Sector Diversification (Unaudited)
The sector diversification shown is based on the total long-term securities.
72 | Annual Report | December 31, 2021 |
China Growth Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks | |||||||||
Emerging Asia—96.1% | |||||||||
China—96.1% | |||||||||
Aier Eye Hospital Group Co., Ltd. Class “A” (Health care providers & services) | 20,968 | $ | 139 | ||||||
* | Alibaba Group Holding, Ltd. (Internet & direct marketing retail) | 14,200 | 217 | ||||||
* | Angelalign Technology, Inc. (Health care equipment & supplies) | 1,400 | 45 | ||||||
ANTA Sports Products, Ltd. (Textiles, apparel & luxury goods) | 7,000 | 105 | |||||||
Bank of Ningbo Co., Ltd. Class “A” (Banks) | 25,190 | 151 | |||||||
Beijing Kingsoft Office Software, Inc. Class “A” (Software) | 2,151 | 89 | |||||||
Changzhou Xingyu Automotive Lighting Systems Co., Ltd. Class “A” (Auto components) | 4,034 | 129 | |||||||
China Meidong Auto Holdings, Ltd. (Specialty retail) | 20,000 | 103 | |||||||
China Merchants Bank Co., Ltd. Class “H” (Banks) | 42,500 | 330 | |||||||
China Tourism Group Duty Free Corporation, Ltd. Class “A” (Specialty retail) | 8,400 | 289 | |||||||
Contemporary Amperex Technology Co., Ltd. Class “A” (Electrical equipment) | 3,700 | 341 | |||||||
Country Garden Services Holdings Co., Ltd. (Real estate management & development) | 12,000 | 72 | |||||||
East Money Information Co., Ltd. Class “A” (Capital markets) | 16,600 | 97 | |||||||
Ecovacs Robotics Co., Ltd. Class “A” (Household durables) | 3,600 | 85 | |||||||
Estun Automation Co., Ltd. Class “A” (Machinery) | 8,000 | 33 | |||||||
Foshan Haitian Flavouring & Food Co., Ltd. Class “A” (Food products) | 16,100 | 265 | |||||||
Hangzhou Tigermed Consulting Co., Ltd. Class “A” (Life sciences tools & services) | 5,117 | 103 | |||||||
* | Hua Hong Semiconductor, Ltd. (Semiconductors & semiconductor equipment) | 13,000 | 72 | ||||||
* | JD.com, Inc. Class “A” (Internet & direct marketing retail) | 6,250 | 220 | ||||||
Jiangsu Hengli Hydraulic Co., Ltd. Class “A” (Machinery) | 7,600 | 98 | |||||||
Juewei Food Co., Ltd. Class “A” (Food products) | 5,700 | 61 | |||||||
* | Kingdee International Software Group Co., Ltd. (Software) | 24,000 | 74 | ||||||
Kweichow Moutai Co., Ltd. Class “A” (Beverages) | 1,100 | 354 | |||||||
Li Ning Co., Ltd. (Textiles, apparel & luxury goods) | 11,000 | 120 | |||||||
Maxscend Microelectronics Co., Ltd. Class “A” (Electronic equipment, instruments & components) | 3,300 | 169 |
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Emerging Asia—(continued) | |||||||||
China—(continued) | |||||||||
* | Meituan Class “B” (Internet & direct marketing retail) | 5,200 | $ | 150 | |||||
Midea Group Co., Ltd. Class “A” (Household durables) | 1,800 | 21 | |||||||
NAURA Technology Group Co., Ltd. Class “A” (Semiconductors & semiconductor equipment) | 2,300 | 125 | |||||||
NetEase, Inc. (Entertainment) | 8,800 | 178 | |||||||
Ovctek China, Inc. Class “A” (Health care equipment & supplies) | 8,000 | 72 | |||||||
Proya Cosmetics Co., Ltd. Class “A” (Personal products) | 2,600 | 85 | |||||||
Sangfor Technologies, Inc. Class “A” (Software) | 3,600 | 108 | |||||||
SG Micro Corporation Class “A” (Semiconductors & semiconductor equipment) | 2,700 | 131 | |||||||
Shanghai M&G Stationery, Inc. Class “A” (Commercial services & supplies) | 8,200 | 83 | |||||||
Shenzhen Inovance Technology Co., Ltd. Class “A” (Machinery) | 21,300 | 229 | |||||||
Shenzhou International Group Holdings, Ltd. (Textiles, apparel & luxury goods) | 5,000 | 96 | |||||||
Sungrow Power Supply Co., Ltd. Class “A” (Electrical equipment) | 3,900 | 89 | |||||||
Suzhou Maxwell Technologies Co., Ltd. Class “A” (Electrical equipment) | 700 | 71 | |||||||
Tencent Holdings, Ltd. (Interactive Media & Services) | 9,500 | 557 | |||||||
* | Topchoice Medical Corporation Class “A” (Health care providers & services) | 2,300 | 72 | ||||||
Will Semiconductor Co., Ltd. Shanghai Class “A” (Semiconductors & semiconductor equipment) | 3,200 | 156 | |||||||
Wuliangye Yibin Co., Ltd. Class “A” (Beverages) | 6,100 | 213 | |||||||
WuXi AppTec Co., Ltd. Class “H” (Life sciences tools & services) | 3,900 | 67 | |||||||
* | Wuxi Biologics Cayman, Inc. (Life sciences tools & services) | 16,500 | 196 | ||||||
Wuxi Lead Intelligent Equipment Co., Ltd. Class “A” (Electronic equipment, instruments & components) | 8,600 | 100 | |||||||
Yonyou Network Technology Co., Ltd. Class “A” (Software) | 15,200 | 86 | |||||||
Zhangzhou Pientzehuang Pharmaceutical Co., Ltd. Class “A” (Pharmaceuticals) | 2,300 | 158 | |||||||
Zhejiang Jingsheng Mechanical & Electrical Co., Ltd. Class “A” (Semiconductors & semiconductor equipment) | 6,000 | 65 | |||||||
Zhongsheng Group Holdings, Ltd. (Specialty retail) | 9,000 | 70 | |||||||
6,939 |
See accompanying Notes to Financial Statements.
December 31, 2021 | William Blair Funds | 73 |
China Growth Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Shares or Principal Amount | Value | ||||||
Common Stocks—(continued) | ||||||||
Asia—2.8% | ||||||||
Hong Kong—2.8% | ||||||||
AIA Group, Ltd. (Insurance) | 11,000 | $ | 111 | |||||
Hong Kong Exchanges and Clearing, Ltd. (Diversified financial services) | 1,600 | 94 | ||||||
205 | ||||||||
Total Common Stocks—98.9% (cost $7,575) | 7,144 | |||||||
Repurchase Agreement | ||||||||
Fixed Income Clearing Corporation, 0.000% dated 12/31/21, due 1/3/22, repurchase price $116, collateralized by U.S. Treasury Bond, 2.875%, due 11/15/46, valued at $119. | $116 | 116 | ||||||
Total Repurchase Agreement—1.6% (cost $116) | 116 | |||||||
Total Investments—100.5% (cost $7,691) | 7,260 | |||||||
Liabilities, plus cash and other assets—(0.5)% | (35 | ) | ||||||
Net assets—100.0% | $ | 7,225 |
* = Non-income producing security
At December 31, 2021, the Fund’s Portfolio of Investments includes the following industry categories (as a percentage of long-term investments):
Consumer Discretionary | 22.4% | |
Information Technology | 16.5% | |
Consumer Staples | 13.7% | |
Industrials | 13.2% | |
Health Care | 11.9% | |
Financials | 11.0% | |
Communication Services | 10.3% | |
Real Estate | 1.0% | |
Total | 100.0% |
At December 31, 2021, the Fund’s Portfolio of Investments includes the following currency categories (as a percentage of long-term investments):
Chinese Yuan Renminbi | 59.7% | |
Hong Kong Dollar | 40.3% | |
Total | 100.0% |
See accompanying Notes to Financial Statements.
74 | Annual Report | December 31, 2021 |
Fixed Income Market Review and Outlook
Calendar year 2021 started and ended with periods of rising interest rates and rate volatility, while the mid-year period offered a period of relative calm for the market. U.S. economic growth outpaced expectations in the first quarter, aiding a move higher in U.S. Treasury yields rebounding from all-time lows touched in 2020. Yield volatility, as measured by the ICE BofAML Option Volatility Estimate (MOVE) Index, also moved higher as the curve flattened into year end. Heading into year-end, short-term yields rose as investors priced in a less-accommodative Federal Reserve (Fed) policy stance and longer-term yields fell on disinflationary pressures from a potentially hawkish U.S. Federal Reserve Bank and the resurgence of COVID-19-related risks. Supported by favorable trends in economic and labor data, in November the U.S. Federal Reserve began to reduce the amount of their periodic asset purchases and subsequently accelerated the pace of reductions on the possibility for “higher and more persistent and widespread” inflation and “fast approaching” maximum employment.
In this environment duration was the biggest driver of performance differentials across the market, with the notable exception being U.S. Treasury Inflation-Protected Securities (TIPS), which led performance with a total return of +5.96% on higher inflation expectations. 2021 was only one of four calendar years since 1976 (the start date for the Bloomberg U.S. Aggregate Bond Index) with a negative total return for the fixed income market, down -1.54% as measured by the Bloomberg U.S. Aggregate Bond Index, surpassed only by 2013 (-2.02%) and 1994 (-2.92%). The yield-to-worst for the index ended 2021 at 1.75%, up from 1.12% at the beginning of the year, a record calendar year growth rate of +56%. The U.S. Treasury sector weighed heaviest on index performance, followed by Agency and Government-Related debt. The Agency Mortgage-Backed Securities (MBS) and Investment Grade (IG) corporate bond segments were down -1.04% each during the period, while the shorter-duration Asset-Backed Securities (ABS) sector lost the least with a total return of -0.34%. Within IG corporate debt, Utilities lagged, followed by Financials, while Industrials outperformed. Within investment grade rated debt, the BBB segment outperformed, while below-investment grade corporate debt generated positive performance of +5.28%. In terms of maturity, the 7-10 year segment of the index underperformed the most, followed closely by bonds in the 10+ year segment, while the 1-3 year segment outperformed the 3-5 year segment.
In summary, 2021 was a strong year of growth for the U.S. economy and corporate earnings. After an enthusiastic economic start to the year there was a brief summer mirage of loosening COVID-19 restrictions before Omicron made its destructive and disruptive way through the population and economy. Despite the logistical challenges, consumer demand was strong throughout the year, pushing November imports 4.6% higher year over year and driving November’s trade deficit to $80.4 billion, which was close to September’s record level of $84.4 billion. Supportive factors for the consumer included: credit card delinquencies remaining at multi-year lows and the labor market adding jobs to push the unemployment rate to 3.9%. For the year, monthly new vehicle purchases averaged over 15 million per month while strongly fluctuating throughout the year, touching multi-year highs and lows. and touched multi-year highs in the beginning of the year before settling at multi-year lows given limited availability. This dynamic also expressed itself in a measure of used car prices, the Manheim Index, which climbed 47% year-over-year, illustrating the interaction between the economic recovery, supply-chain disruptions (i.e. semi-conductors), and inflationary pressures. Markit PMIs (Purchasing Managers Index) readings remained in expansionary territory (50+) during the year with manufacturing PMIs running higher. This was driven in part by consumers reallocating a larger share of spending on goods as they have been limited in their ability to spend in the services segments. Housing market activity continued to show signs of strength supported by factors including higher home prices, easier and cheaper financing options, a structural shortage in housing stock versus population growth and a spike in demand from COVID-19-related relocations.
The market has begun to price in multiple rate hikes in 2022 in response to the Fed’s shift in language regarding inflation (the pivot from “transitory”) and the acceleration of the timeline for the reduction of its asset purchase program. We expect the Federal Open Markets Committee to continue to be data-dependent in setting policy. We believe that more economic data is needed for the Fed to determine the pace of rate hikes for 2022. With the uncertainty surrounding inflation dynamics, we expect TIPS to continue to exhibit elevated volatility and we remain tactical in our positioning.
Spread sectors appear attractive versus U.S. Treasuries (medium/longer-term) given the favorable fundamental backdrop. However, in the near-term we expect continued volatility and could see a broader risk-off scenario driven by risks related to COVID-19 omicron variant.
We are cautious on Agency MBS due to technical headwinds to the sector that may arise from reduced Fed purchasing as well as the valuation impact that has arisen from elevated prepayments. Pre-payment speeds remain an area of focus given greater refinancing activity driven by factors such as higher home prices, lower interest rates, and new technology. We view Agency Collateralized Mortgage Obligations (CMO) and multi-family Commercial Mortgage-Backed Securities (CMBS) as well positioned to benefit from the fundamental demand for housing in a supply-constrained environment, while also providing a better pre-payment profile. We believe certain ABS offer attractive total return potential as households and consumers continue to demonstrate financial stability and access to credit.
Within the corporate sector, historically tight spread levels and valuations remain supported by sound fundamentals. However, we believe security selection will continue to be critical as market volatility has increased and we expect this dynamic to continue.
December 31, 2021 | William Blair Funds | 75 |
76 | Annual Report | December 31, 2021 |
Bond Fund
Performance Highlights (Unaudited)
Average Annual Total Returns through 12/31/2021 | ||||||||||||||||
1 Year(a) | 3 Year | 5 Year | 10 Year | |||||||||||||
Class N | (1.66 | )% | 5.54 | % | 3.56 | % | 3.37 | % | ||||||||
Class I | (1.41 | ) | 5.71 | 3.75 | 3.56 | |||||||||||
Class R6 | (1.40 | ) | 5.79 | 3.82 | 3.64 | |||||||||||
Bloomberg U.S. Aggregate Index | (1.54 | ) | 4.79 | 3.57 | 2.90 |
(a) | The impact of the Voluntary Payment from Adviser was 0.05% for Class N, Class I and Class R6. |
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are average annual total returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272, or visit our Web site at www.williamblairfunds.com. From time to time, the investment adviser may waive fees or reimburse expenses for the Fund. Without these waivers/reimbursements, performance would be lower. Class N shares are not subject to a sales load. Class I shares are not subject to a sales load or distribution (Rule 12b-1) fees. Class R6 shares are not subject to a sales load, distribution (Rule 12b-1) fees, or sub-transfer agent fees.
The performance highlights and graph presented above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The Bloomberg U.S. Aggregate Index indicates broad intermediate government/corporate bond market performance.
This report identifies the Fund’s investments on December 31, 2021. These holdings are subject to change. Not all investments in the Fund performed the same, nor is there any guarantee that these investments will perform as well in the future. Market forecasts provided in this report may not necessarily come to pass.
Sector Diversification (Unaudited)
The sector diversification shown is based on the total investments.
December 31, 2021 | William Blair Funds | 77 |
Bond Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Principal Amount | Value | |||||||
U.S. Government and U.S. Government Agency—33.3% | |||||||||
U.S. Treasury Inflation Indexed Notes/Bonds—1.0% | |||||||||
U.S. Treasury Inflation Indexed Bond, 0.125%, due 7/15/31 | $1,264 | $ | 1,423 | ||||||
U.S. Treasury Inflation Indexed Bond, 0.250%, due 2/15/50 | 1,291 | 1,567 | |||||||
Total U.S. Treasury Inflation Indexed Notes/Bonds | 2,990 | ||||||||
U.S. Treasury—11.8% | |||||||||
U.S. Treasury Bond, 1.125%, due 5/15/40 | 6,700 | 5,893 | |||||||
U.S. Treasury Bond, 2.000%, due 11/15/41 | 2,800 | 2,842 | |||||||
U.S. Treasury Bond, 2.375%, due 11/15/49 | 2,267 | 2,502 | |||||||
U.S. Treasury Bond, 2.000%, due 8/15/51 | 2,800 | 2,868 | |||||||
U.S. Treasury Note, 0.625%, due 7/31/26(a) | 4,300 | 4,184 | |||||||
U.S. Treasury Note, 1.125%, due 2/28/27 | 850 | 844 | |||||||
U.S. Treasury Note, 1.250%, due 6/30/28 | 2,475 | 2,452 | |||||||
U.S. Treasury Note, 0.625%, due 5/15/30 | 2,100 | 1,966 | |||||||
U.S. Treasury Note, 0.625%, due 8/15/30 | 4,250 | 3,969 | |||||||
U.S. Treasury Note, 1.125%, due 2/15/31 | 3,220 | 3,129 | |||||||
U.S. Treasury Strip Principal, 0.000%, due 8/15/27 | 4,750 | 4,416 | |||||||
Total U.S. Treasury | 35,065 | ||||||||
Federal Home Loan Mortgage Corp. (FHLMC)—6.0% | |||||||||
#G02210, 7.000%, due 12/1/28 | 19 | 21 | |||||||
#G02183, 6.500%, due 3/1/30 | 2 | 3 | |||||||
#G01400, 7.000%, due 4/1/32 | 253 | 294 | |||||||
#G01728, 7.500%, due 7/1/32 | 39 | 46 | |||||||
#C01385, 6.500%, due 8/1/32 | 32 | 37 | |||||||
#C01623, 5.500%, due 9/1/33 | 37 | 42 | |||||||
#A15039, 5.500%, due 10/1/33 | 2 | 2 | |||||||
#A17603, 5.500%, due 1/1/34 | 859 | 975 | |||||||
#G01843, 6.000%, due 6/1/35 | 7 | 8 | |||||||
#A62858, 6.500%, due 7/1/37 | 35 | 39 | |||||||
#G03170, 6.500%, due 8/1/37 | 77 | 91 | |||||||
#A78138, 5.500%, due 6/1/38 | 94 | 106 | |||||||
#G04466, 5.500%, due 7/1/38 | 6,877 | 7,975 | |||||||
#G60366, 6.000%, due 10/1/39 | 6,701 | 7,858 | |||||||
#C03665, 9.000%, due 4/1/41 | 158 | 188 | |||||||
Total FHLMC Mortgage Obligations | 17,685 | ||||||||
Federal National Mortgage Association (FNMA)—12.0% | |||||||||
#735104, 7.000%, due 5/1/22 | — | (b) | — | (b) | |||||
#255956, 5.500%, due 10/1/25 | 4 | 4 | |||||||
2018-M2, Tranche A1, 2.802%, due 1/25/28 | 406 | 414 | |||||||
#252925, 7.500%, due 12/1/29 | — | (b) | — | (b) |
Issuer | Principal Amount | Value | |||||||
U.S. Government and U.S. Government Agency—(continued) | |||||||||
Federal National Mortgage Association (FNMA)—(continued) | |||||||||
#AD0729, 7.500%, due 12/1/30 | $1,744 | $ | 1,990 | ||||||
#535977, 6.500%, due 4/1/31 | 3 | 3 | |||||||
#253907, 7.000%, due 7/1/31 | 1 | 1 | |||||||
#MA4448, 1.500%, due 10/1/31 | 3,229 | 3,268 | |||||||
#587849, 6.500%, due 11/1/31 | 3 | 4 | |||||||
#545437, 7.000%, due 2/1/32 | 21 | 23 | |||||||
#254548, 5.500%, due 12/1/32 | 15 | 17 | |||||||
#AD0725, 7.000%, due 12/1/32 | 825 | 973 | |||||||
#555340, 5.500%, due 4/1/33 | 128 | 147 | |||||||
#741850, 5.500%, due 9/1/33 | 213 | 241 | |||||||
#555800, 5.500%, due 10/1/33 | 17 | 20 | |||||||
#756153, 5.500%, due 11/1/33 | 187 | 212 | |||||||
#CA2754, 4.500%, due 11/1/33 | 428 | 464 | |||||||
#763798, 5.500%, due 3/1/34 | 34 | 39 | |||||||
#725228, 6.000%, due 3/1/34 | 1,769 | 2,015 | |||||||
#725611, 5.500%, due 6/1/34 | 41 | 46 | |||||||
#745563, 5.500%, due 8/1/34 | 236 | 268 | |||||||
#AL6413, 8.000%, due 8/1/34 | 185 | 207 | |||||||
#745092, 6.500%, due 7/1/35 | 130 | 146 | |||||||
#AL6412, 7.500%, due 9/1/35 | 334 | 378 | |||||||
#AD0979, 7.500%, due 10/1/35 | 25 | 29 | |||||||
#888305, 7.000%, due 3/1/36 | 4 | 4 | |||||||
#895637, 6.500%, due 5/1/36 | 24 | 28 | |||||||
#893318, 6.500%, due 8/1/36 | 5 | 5 | |||||||
#AL6411, 7.000%, due 12/1/37 | 811 | 927 | |||||||
#AL0904, 5.500%, due 1/1/38 | 48 | 54 | |||||||
#986856, 6.500%, due 9/1/38 | 47 | 54 | |||||||
#991911, 7.000%, due 11/1/38 | 39 | 42 | |||||||
#AD0752, 7.000%, due 1/1/39 | 282 | 344 | |||||||
#FM2467, 6.000%, due 1/1/39 | 2,965 | 3,490 | |||||||
#AC1619, 5.500%, due 8/1/39 | 147 | 168 | |||||||
#AD7137, 5.500%, due 7/1/40 | 1,932 | 2,211 | |||||||
#AL9226, 5.500%, due 12/1/41 | 7,649 | 8,832 | |||||||
#BM5121, 5.500%, due 12/1/48 | 7,294 | 8,555 | |||||||
Total FNMA Mortgage Obligations | 35,623 | ||||||||
Government National Mortgage Association (GNMA)—0.5% | |||||||||
2021-160, Tranche MA, 1.000%, due 1/20/50 | 1,595 | 1,587 | |||||||
Collateralized Mortgage Obligation—2.0% | |||||||||
Seasoned Credit Risk Transfer Trust, 2018-3, Tranche MA, 3.500%, due 8/25/57, VRN | 1,365 | 1,417 | |||||||
Seasoned Credit Risk Transfer Trust, 2018-4, Tranche MA, 3.500%, due 3/25/58 | 841 | 874 | |||||||
Seasoned Credit Risk Transfer Trust, 2019-2, Tranche MA, 3.500%, due 8/25/58 | 1,029 | 1,075 | |||||||
Seasoned Credit Risk Transfer Trust, 2021-3, Tranche TT, 2.000%, due 3/25/61 | 1,393 | 1,404 | |||||||
Seasoned Loans Structured Transaction Trust, 2019-3, Tranche A1C, 2.750%, due 11/25/29 | 1,143 | 1,180 | |||||||
Total Collateralized Mortgage Obligation | 5,950 |
See accompanying Notes to Financial Statements.
78 | Annual Report | December 31, 2021 |
Bond Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Principal Amount | Value | |||||||
Commercial Mortgage-Backed Securities—3.6% | |||||||||
JP Morgan Chase Commercial Mortgage Securities Trust—144A, 2021-NYAH, Tranche B, 1M USD LIBOR + 1.090%, 1.200%, 6/15/38, VRN | $ | 3,065 | $ | 3,058 | |||||
JP Morgan Chase Commercial Mortgage Securities Trust—144A, 2021-NYAH, Tranche D, 1M USD LIBOR + 1.540%, 1.650%, 6/15/38, VRN | 1,780 | 1,774 | |||||||
Med Trust—144A, 2021-MDLN, Tranche C, 1M USD LIBOR + 1.800%, 1.910%, 11/15/38, VRN | 3,555 | 3,554 | |||||||
Med Trust—144A, 2021-MDLN, Tranche D, 1M USD LIBOR + 2.000%, 2.110%, 11/15/38, VRN | 1,775 | 1,775 | |||||||
FRESB Mortgage Trust, 2021-SB91, Tranche A5H, 1.200%, 7/25/41, VRN | 629 | 626 | |||||||
Total Commercial Mortgage-Backed Securities | 10,787 | ||||||||
Asset-Backed Securities—5.0% | |||||||||
Automobile—3.7% | |||||||||
Carmax Auto Owner Trust, 2021-1, Tranche D, 1.280%, 7/15/27 | 500 | 493 | |||||||
World Omni Auto Receivables Trust, 2021-A, Tranche B, 0.640%, 12/15/26 | 974 | 955 | |||||||
Santander Consumer Auto Receivables Trust—144A, 2020-BA, Tranche A3, 0.460%, 8/15/24 | 965 | 965 | |||||||
Canadian Pacer Auto Receivables Trust—144A, 2021-1A, Tranche A1, 0.121%, 10/19/22 | 1,045 | 1,046 | |||||||
GreatAmerica Leasing Receivables Funding LLC—144A, 2021-2, Tranche A4, 1.040%, 9/15/27 | 1,093 | 1,079 | |||||||
Tesla Auto Lease Trust—144A, 2019-A, Tranche E, 5.480%, 5/22/23 | 1,650 | 1,697 | |||||||
Tesla Auto Lease Trust—144A, 2019-A, Tranche D, 3.370%, 1/20/23 | 1,750 | 1,783 | |||||||
GM Financial Automobile Leasing Trust, 2020-1, Tranche D, 2.280%, 6/20/24 | 3,050 | 3,082 | |||||||
Total Automobile | 11,100 | ||||||||
Other—0.6% | |||||||||
CNH Equipment Trust, 2021-C, Tranche A3, 0.810%, 12/15/26 | 1,260 | 1,252 | |||||||
GreatAmerica Leasing Receivables Funding LLC—144A, 2021-2, Tranche A1, 0.149%, 10/17/22 | 665 | 665 | |||||||
Total Other | 1,917 | ||||||||
Credit Card—0.7% | |||||||||
Capital One Multi-Asset Execution Trust, 2021-A3, Tranche A3, 1.040%, 11/16/26 | 1,940 | 1,932 | |||||||
Total Asset-Backed Securities | 14,949 |
Issuer | Principal Amount | Value | |||||||
Corporate Obligations—54.8% | |||||||||
Financials—15.3% | |||||||||
AerCap Ireland Capital DAC, 1.150%, due 10/29/23 | $3,000 | $ | 2,987 | ||||||
Banco Inbursa S.A. Institucion de Banca Multiple—144A, 4.125%, due 6/6/24 | 2,000 | 2,082 | |||||||
Bank of America Corporation, 5.875%, due 2/7/42 | 2,000 | 2,853 | |||||||
Blackstone Private Credit Fund—144A, 2.350%, due 11/22/24 | 2,675 | 2,675 | |||||||
Boston Properties L.P., 2.550%, due 4/1/32 | 3,200 | 3,184 | |||||||
Brookfield Finance I UK plc, 2.340%, due 1/30/32 | 2,425 | 2,366 | |||||||
Citigroup, Inc., 5.875%, due 1/30/42 | 2,000 | 2,840 | |||||||
ERP Operating L.P., 4.500%, due 6/1/45 | 2,500 | 3,169 | |||||||
Itau Unibanco Holding S.A.—144A, 5 year CMT + 3.446%, 3.875%, due 4/15/31, VRN | 1,250 | 1,199 | |||||||
JPMorgan Chase & Co., SOFR + 3.125%, 4.600%, due 2/1/25, VRN | 3,000 | 3,083 | |||||||
OneMain Finance Corporation, 5.625%, due 3/15/23 | 1,475 | 1,542 | |||||||
Owl Rock Capital Corporation, 3.750%, due 7/22/25 | 1,275 | 1,322 | |||||||
Owl Rock Capital Corporation, 2.875%, due 6/11/28 | 1,725 | 1,696 | |||||||
Royal Bank of Canada, SOFR + 0.590%, 0.639%, due 11/2/26, VRN | 3,990 | 3,988 | |||||||
Simon Property Group L.P., 3.300%, due 1/15/26 | 2,750 | 2,914 | |||||||
The Bank of Nova Scotia, SOFR + 0.545%, 0.595%, due 3/2/26, VRN | 3,100 | 3,103 | |||||||
The Goldman Sachs Group, Inc., SOFR + 0.505%, 0.657%, due 9/10/24, VRN | 3,000 | 2,976 | |||||||
Wells Fargo & Co., 4.480%, due 1/16/24 | 1,500 | 1,594 | |||||||
Total Financials | 45,573 | ||||||||
Industrials—6.6% | |||||||||
CNH Industrial Capital LLC, 1.950%, due 7/2/23 | 1,750 | 1,774 | |||||||
FedEx Corporation, 3.250%, due 4/1/26 | 1,900 | 2,030 | |||||||
Flowserve Corporation, 2.800%, due 1/15/32 | 1,700 | 1,658 | |||||||
Johnson Controls International plc, 1.750%, due 9/15/30 | 2,100 | 2,003 | |||||||
Owens Corning, 7.000%, due 12/1/36 | 2,000 | 2,833 | |||||||
Republic Services, Inc., 2.900%, due 7/1/26 | 2,500 | 2,617 |
See accompanying Notes to Financial Statements.
December 31, 2021 | William Blair Funds | 79 |
Bond Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Principal Amount | Value | |||||||
Corporate Obligations—(continued) | |||||||||
Industrials—(continued) | |||||||||
Sealed Air Corp.—144A, 1.573%, due 10/15/26 | $1,000 | $ | 971 | ||||||
The Boeing Co., 2.196%, due 2/4/26 | 1,715 | 1,715 | |||||||
Xylem, Inc., 3.250%, due 11/1/26 | 2,225 | 2,379 | |||||||
Yum! Brands, Inc., 6.875%, due 11/15/37 | 1,250 | 1,588 | |||||||
Total Industrials | 19,568 | ||||||||
Consumer Discretionary—5.9% | |||||||||
Brunswick Corporation, 0.850%, due 8/18/24 | 3,200 | 3,157 | |||||||
Brunswick Corporation, 2.400%, due 8/18/31 | 1,600 | 1,538 | |||||||
Dana, Inc., 4.250%, due 9/1/30 | 500 | 508 | |||||||
Ford Motor Credit Co. LLC, 3M USD LIBOR + 1.235%, 1.391%, due 2/15/23, VRN | 700 | 699 | |||||||
General Motors Financial Co., Inc., SOFR + 0.760%, 0.810%, due 3/8/24, VRN | 1,475 | 1,482 | |||||||
General Motors Financial Co., Inc., SOFR + 0.620%, 0.669%, due 10/15/24, VRN | 1,150 | 1,149 | |||||||
Hyatt Hotels Corporation, 1.300%, due 10/1/23 | 1,770 | 1,770 | |||||||
Las Vegas Sands Corporation, 3.900%, due 8/8/29 | 1,600 | 1,614 | |||||||
Lennar Corporation, 4.500%, due 4/30/24 | 2,450 | 2,606 | |||||||
Meritage Homes Corporation, 5.125%, due 6/6/27 | 1,000 | 1,103 | |||||||
The Goodyear Tire & Rubber Co., 5.250%, due 4/30/31 | 1,000 | 1,088 | |||||||
Wolverine World Wide, Inc.—144A, 4.000%, due 8/15/29 | 1,000 | 974 | |||||||
Total Consumer Discretionary | 17,688 | ||||||||
Health Care—5.4% | |||||||||
AbbVie, Inc., 4.700%, due 5/14/45 | 2,250 | 2,807 | |||||||
Centene Corporation, 2.450%, due 7/15/28 | 1,300 | 1,282 | |||||||
Gilead Sciences, Inc., 1.200%, due 10/1/27 | 1,600 | 1,549 | |||||||
HCA, Inc., 5.375%, due 2/1/25 | 3,000 | 3,301 | |||||||
Laboratory Corporation of America Holdings, 3.250%, due 9/1/24 | 3,144 | 3,295 | |||||||
Mozart Debt Merger Sub, Inc.—144A, 3.875%, due 4/1/29 | 1,000 | 998 | |||||||
Thermo Fisher Scientific, Inc., 1.215%, due 10/18/24 | 2,900 | 2,899 | |||||||
Total Health Care | 16,131 |
Issuer | Principal Amount | Value | |||||||
Corporate Obligations—(continued) | |||||||||
Consumer Staples—4.8% | |||||||||
Altria Group, Inc., 6.200%, due 2/14/59 | $1,750 | $ | 2,303 | ||||||
Avery Dennison Corporation, 0.850%, due 8/15/24 | 1,500 | 1,479 | |||||||
Fresenius Medical Care U.S. Finance III, Inc.—144A, 2.375%, due 2/16/31 | 1,800 | 1,724 | |||||||
Grupo Bimbo S.A.B. de C.V.—144A, 3.875%, due 6/27/24 | 2,000 | 2,109 | |||||||
JDE Peet’s N.V.—144A, 0.800%, due 9/24/24 | 250 | 245 | |||||||
JDE Peet’s N.V.—144A, 1.375%, due 1/15/27 | 850 | 819 | |||||||
The Kroger Co., 8.000%, due 9/15/29 | 2,000 | 2,782 | |||||||
TreeHouse Foods, Inc., 4.000%, due 9/1/28 | 1,400 | 1,346 | |||||||
United Rentals North America, Inc., 5.250%, due 1/15/30 | 1,250 | 1,355 | |||||||
Total Consumer Staples | 14,162 | ||||||||
Communication Services—4.7% | |||||||||
Activision Blizzard, Inc., 2.500%, due 9/15/50 | 2,600 | 2,293 | |||||||
AT&T, Inc., 5.700%, due 3/1/57 | 2,100 | 2,901 | |||||||
Comcast Corporation, 4.950%, due 10/15/58 | 1,800 | 2,504 | |||||||
Motorola Solutions, Inc., 4.600%, due 2/23/28 | 2,750 | 3,110 | |||||||
Verizon Communications, Inc., SOFR + 0.790%, 0.840%, due 3/20/26, VRN | 3,000 | 3,038 | |||||||
Total Communication Services | 13,846 | ||||||||
Information Technology—4.6% | |||||||||
Analog Devices, Inc., SOFR + 0.250%, 0.300%, due 10/1/24, VRN | 750 | 751 | |||||||
Corning, Inc., 5.850%, due 11/15/68 | 2,150 | 3,192 | |||||||
FLIR Systems, Inc., 2.500%, due 8/1/30 | 2,500 | 2,511 | |||||||
HP, Inc., 2.200%, due 6/17/25 | 1,150 | 1,175 | |||||||
HP, Inc.—144A, 2.650%, due 6/17/31 | 1,850 | 1,828 | |||||||
Oracle Corporation, 3.950%, due 3/25/51 | 1,350 | 1,409 | |||||||
Roper Technologies, Inc., 4.200%, due 9/15/28 | 2,500 | 2,811 | |||||||
Total Information Technology | 13,677 | ||||||||
Real Estate—2.8% | |||||||||
American Tower Corporation, 4.000%, due 6/1/25 | 2,500 | 2,678 | |||||||
Jones Lang LaSalle, Inc., 4.400%, due 11/15/22 | 2,500 | 2,553 | |||||||
Public Storage, 1.850%, due 5/1/28 | 3,100 | 3,099 | |||||||
Total Real Estate | 8,330 |
See accompanying Notes to Financial Statements.
80 | Annual Report | December 31, 2021 |
Bond Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Principal Amount | Value | |||||||
Corporate Obligations—(continued) | |||||||||
Energy—1.8% | |||||||||
Baker Hughes Holdings LLC, 1.231%, due 12/15/23 | $ | 250 | $ | 251 | |||||
ConocoPhillips, 6.500%, due 2/1/39 | 1,800 | 2,625 | |||||||
Enbridge, Inc., 0.550%, due 10/4/23 | 575 | 570 | |||||||
S.A. Global Sukuk Ltd.—144A, 2.694%, due 6/17/31 | 1,800 | 1,809 | |||||||
Total Energy | 5,255 | ||||||||
Materials—1.7% | |||||||||
Ecolab, Inc., 0.900%, due 12/15/23 | 1,000 | 1,002 | |||||||
Orbia Advance Corp S.A.B. de C.V. —144A, 5.875%, due 9/17/44 | 1,550 | 1,905 | |||||||
Suzano Austria GmbH, 3.125%, due 1/15/32 | 2,420 | 2,342 | |||||||
Total Basic Materials | 5,249 | ||||||||
Utilities—1.2% | |||||||||
NextEra Energy Capital Holdings, Inc., SOFR + 0.400%, 0.450%, due 11/3/23, VRN | 2,500 | 2,500 | |||||||
NextEra Energy Capital Holdings, Inc., 1.900%, due 6/15/28 | 1,000 | 991 | |||||||
Total Utilities | 3,491 | ||||||||
Total Corporate Obligations | 162,970 | ||||||||
Total Long-Term Investments—96.7% (cost $279,641) | 287,606 | ||||||||
Repurchase Agreement—2.1% | |||||||||
Fixed Income Clearing Corporation, 0.000% dated 12/31/21, due 1/3/22, repurchase price $6,309, collateralized by U.S. Treasury Bond, 3.125%, due 8/15/44, valued at $6,435 | 6,309 | 6,309 | |||||||
Total Repurchase Agreement—2.1% (cost $6,309) | 6,309 |
Issuer | Principal Amount | Value | |||||||
Commercial Paper—0.8% | |||||||||
Sherwin Williams Co., 0.101%, due 1/3/22 | $2,360 | $ | 2,360 | ||||||
Total Commercial Paper—0.8% (cost $2,360) | 2,360 | ||||||||
Total Investments—99.6% (cost $288,310) | 296,275 | ||||||||
Securities Sold , Not Yet Purchased | |||||||||
U.S. Government Agency—(5.2)% | |||||||||
Federal National Mortgage Association (FNMA)—(5.2)% | |||||||||
TBA, 2.500%, due 1/1/52 | (7,500 | ) | (7,656 | ) | |||||
TBA, 3.000%, due 1/1/52 | (5,000 | ) | (5,183 | ) | |||||
TBA, 2.000%, due 1/1/52 | (2,500 | ) | (2,494 | ) | |||||
Total Securities Sold , Not Yet Purchased—(5.2)% (proceeds $15,314) | (15,333 | ) | |||||||
Cash and other assets, less liabilities—5.6% | 16,380 | ||||||||
Net assets—100.0% | $ | 297,322 |
The obligations of certain U.S. Government-sponsored securities are neither issued nor guaranteed by the U.S. Treasury.
144A = Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
LIBOR = London Interbank Offered Rate
SOFR = Secured Overnight Financing Rate
TBA = To Be Announced—TBAs are mortgage-backed securities traded under delayed delivery commitments, settling after December 31, 2021. The term TBA comes from the fact that the specific mortgage-backed security that will be delivered to fulfill a TBA trade is not designated at the time the trade is made.
VRN = Variable Rate Note
(a) Security, or a portion of security, is segregated as collateral for the centrally cleared credit default swaps, aggregating a total of $1,009 (in thousands).
(b) Amount is less than the minimum amount disclosed.
Centrally Cleared Credit Default Swaps | ||||||||||||||||||||||||
Reference Entity | Buy/Sell Protection | Fixed Rate | Payment Frequency | Maturity Date | Cleared Exchange | Notional Amount (in thousands) | Upfront Payment Paid (Received) | Value | Unrealized Appreciation (Depreciation) | |||||||||||||||
CDX.NA.HY- 34 | Buy | 5.000% | 3M | June 2025 | ICE | $ | 9,200 | $ | (907) | $ | (767) | $ | 140 | |||||||||||
CDX.NA.HY- 35 | Buy | 5.000% | 3M | December 2025 | ICE | 5,000 | (501) | (443) | 58 | |||||||||||||||
CDX.NA.IG- 35 | Buy | 1.000% | 3M | December 2030 | ICE | 15,000 | (186) | (226) | (40) | |||||||||||||||
Total net unrealized appreciation (depreciation) on swaps | $158 |
See accompanying Notes to Financial Statements.
December 31, 2021 | William Blair Funds | 81 |
82 | Annual Report | December 31, 2021 |
Short Duration Bond Fund (formerly known as Income Fund)
Performance Highlights (Unaudited)
Average Annual Total Returns through 12/31/2021 | ||||||||||||||||||||
1 Year(b) | 3 Year | 5 Year | 10 Year | Since Inception(a) | ||||||||||||||||
Class N | (1.62 | )% | 2.83 | % | 1.81 | % | 1.92 | % | — | % | ||||||||||
Class I | (1.49 | ) | 2.99 | 1.98 | 2.13 | — | ||||||||||||||
Class R6 | (1.44 | ) | — | — | — | 2.28 | ||||||||||||||
Bloomberg 1-3 Year U.S. Government/Credit Index | (0.47 | ) | 2.28 | 1.85 | 1.39 | 2.04 | ||||||||||||||
Bloomberg U.S. Intermediate Government/Credit Bond Index | | | (1.44 | ) | | | 3.86 | | | | 2.91 | | | | 2.38 | | | | 3.40 | |
(a) | Since inception is for the period from May 2, 2019 (Commencement of Operations) to December 31, 2021. |
(b) | The impact of the Voluntary Payment from Adviser was 0.16% for Class N, Class I and Class R6. |
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are average annual total returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272, or visit our Web site at www.williamblairfunds.com. From time to time, the investment adviser may waive fees or reimburse expenses for the Fund. Without these waivers/reimbursements, performance would be lower. Class N shares are not subject to a sales load. Class I shares are not subject to a sales load or distribution (Rule 12b-1) fees. Class R6 shares are not subject to a sales load, distribution (Rule 12b-1) fees, or sub-transfer agent fees.
The performance highlights and graph presented above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The Bloomberg 1-3 Year U.S. Government/Credit Index measures the return on the investment grade 1-3 year bond market.
The Bloomberg U.S. Intermediate Government/Credit Bond Index indicates broad intermediate government/corporate bond market performance.
On November 10, 2021, the Fund’s Benchmark changed from the Bloomberg U.S. Intermediate Government/Credit Bond Index to the Bloomberg 1-3 Year U.S. Government/Credit Index.
This report identifies the Fund’s investments on December 31, 2021. These holdings are subject to change. Not all investments in the Fund performed the same, nor is there any guarantee that these investments will perform as well in the future. Market forecasts provided in this report may not necessarily come to pass.
Sector Diversification (Unaudited)
The sector diversification shown is based on the total investments.
December 31, 2021 | William Blair Funds | 83 |
Short Duration Bond Fund (formerly known as Income Fund)
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Principal Amount | Value | |||||||
U.S. Government and U.S. Government Agency—34.4% | |||||||||
U.S. Treasury Inflation Indexed Notes/Bonds—0.5% | |||||||||
U.S. Treasury Inflation Indexed Bond, 0.125%, due 7/15/31 | $165 | $ | 186 | ||||||
U.S. Treasury—6.5% | |||||||||
U.S. Treasury Bill, 0.044%, due 3/17/22 | 230 | 230 | |||||||
U.S. Treasury Bond, 2.000%, due 11/15/41 | 85 | 86 | |||||||
U.S. Treasury Floating Rate Note, 3M Treasury money market yield + 0.049%, 0.134%, due 1/31/23 VRN(a) | 900 | 900 | |||||||
U.S. Treasury Note, 2.500%, due 2/15/22 | 200 | 201 | |||||||
U.S. Treasury Note, 0.375%, due 9/15/24 | 500 | 493 | |||||||
U.S. Treasury Note, 0.250%, due 7/31/25 | 450 | 437 | |||||||
U.S. Treasury Note, 0.625%, due 7/31/26 | 200 | 195 | |||||||
Total U.S. Treasury | 2,542 | ||||||||
Federal Home Loan Mortgage Corp. (FHLMC)—5.1% | |||||||||
#J13022, 4.000%, due 9/1/25 | 104 | 109 | |||||||
#G14150, 4.500%, due 4/1/26 | 31 | 33 | |||||||
#J16051, 4.500%, due 7/1/26 | 262 | 279 | |||||||
#G15030, 4.000%, due 3/1/29 | 189 | 203 | |||||||
#A17603, 5.500%, due 1/1/34 | 249 | 282 | |||||||
#G01705, 5.500%, due 6/1/34 | 512 | 586 | |||||||
#A45790, 7.500%, due 5/1/35 | 55 | 61 | |||||||
#G05875, 5.500%, due 2/1/40 | 44 | 51 | |||||||
#C03665, 9.000%, due 4/1/41 | 77 | 91 | |||||||
FHR 5113, Tranche CE, 1.000%, due 1/25/43 | 273 | 274 | |||||||
Total FHLMC Mortgage Obligations | 1,969 | ||||||||
Federal National Mortgage Association (FNMA)—15.6% | |||||||||
FNR G93-19 SH, 1M USD LIBOR + 56.169%, 11.234%, due 4/25/23, VRN | 2 | 2 | |||||||
#255956, 5.500%, due 10/1/25 | 11 | 12 | |||||||
#AL2853, 4.500%, due 6/1/26 | 153 | 161 | |||||||
#AJ6954, 4.000%, due 11/1/26 | 52 | 55 | |||||||
#256639, 5.000%, due 2/1/27 | 3 | 3 | |||||||
#806458, 8.000%, due 6/1/28 | 50 | 55 | |||||||
#880155, 8.500%, due 7/1/29 | 8 | 8 | |||||||
#745519, 8.500%, due 5/1/32 | 37 | 39 | |||||||
#654674, 6.500%, due 9/1/32 | 25 | 28 | |||||||
#AD0725, 7.000%, due 12/1/32 | 352 | 415 | |||||||
#254693, 5.500%, due 4/1/33 | 3 | 3 | |||||||
#711736, 5.500%, due 6/1/33 | 41 | 46 | |||||||
#555531, 5.500%, due 6/1/33 | 25 | 29 | |||||||
#555591, 5.500%, due 7/1/33 | 4 | 5 | |||||||
#725424, 5.500%, due 4/1/34 | 27 | 31 | |||||||
#AL6413, 8.000%, due 8/1/34 | 90 | 101 | |||||||
#AL6412, 7.500%, due 9/1/35 | 251 | 283 | |||||||
#888884, 5.500%, due 12/1/35 | 65 | 74 | |||||||
#928658, 6.500%, due 9/1/37 | 9 | 10 | |||||||
#991911, 7.000%, due 11/1/38 | 25 | 27 |
Issuer | Principal Amount | Value | |||||||
U.S. Government and U.S. Government Agency—(continued) | |||||||||
Federal National Mortgage Association (FNMA)—(continued) | |||||||||
#FM2467, 6.000%, due 1/1/39 | $ | 329 | $ | 388 | |||||
#AL9226, 5.500%, due 12/1/41 | 1,443 | 1,666 | |||||||
#BM1328, 6.000%, due 1/1/42 | 1,030 | 1,199 | |||||||
#BM5121, 5.500%, due 12/1/48 | 1,199 | 1,406 | |||||||
Total FNMA Mortgage Obligations | 6,046 | ||||||||
Government National Mortgage Association (GNMA)—0.6% | |||||||||
2021-160, Tranche MA, 1.000%, due 1/20/50 | 233 | 231 | |||||||
Collateralized Mortgage Obligation—6.1% | |||||||||
Seasoned Credit Risk Transfer Trust, 2018-3, Tranche MA, 3.500%, due 8/25/57 VRN | 404 | 419 | |||||||
Seasoned Credit Risk Transfer Trust, 2018-2, Tranche M55D, 4.000%, due 11/25/57 | 306 | 326 | |||||||
Seasoned Credit Risk Transfer Trust, 2018-4, Tranche MA, 3.500%, due 3/25/58 | 443 | 461 | |||||||
Seasoned Credit Risk Transfer Trust, 2019-2, Tranche MA, 3.500%, due 8/25/58 | 100 | 104 | |||||||
Seasoned Credit Risk Transfer Trust, 2021-3, Tranche TT, 2.000%, due 3/25/61 | 198 | 199 | |||||||
Seasoned Loans Structured Transaction Trust, 2018-1, Tranche A1, 3.500%, due 6/25/28 | 307 | 316 | |||||||
Seasoned Loans Structured Transaction Trust, 2019-3, Tranche A1C, 2.750%, due 11/25/29 | 529 | 546 | |||||||
Total Collateralized Mortgage Obligation | 2,371 | ||||||||
Commercial Mortgage-Backed Securities—4.4% | |||||||||
JP Morgan Chase Commercial Mortgage Securities Trust—144A, 2021-NYAH, Tranche B, 1M USD LIBOR + 1.090%, 1.200%, 6/15/38, VRN | 555 | 554 | |||||||
JP Morgan Chase Commercial Mortgage Securities Trust—144A, 2021-NYAH, Tranche C, 1M USD LIBOR + 1.290%, 1.400%, 6/15/38, VRN | 200 | 200 | |||||||
Med Trust—144A, 2021-MDLN, Tranche B, 1M USD LIBOR + 1.450%, 1.560%, 11/15/38, VRN | 950 | 949 | |||||||
Total Commercial Mortgage-Backed Securities | 1,703 | ||||||||
Asset-Backed Securities—16.4% | |||||||||
Automobile—11.7% | |||||||||
Canadian Pacer Auto Receivables Trust—144A, 2021-1A, Tranche A1, 0.121%, 10/19/22 | 160 | 160 | |||||||
Carmax Auto Owner Trust, 2021-1, Tranche C, 0.940%, 12/15/26 | 550 | 541 | |||||||
Carvana Auto Receivables Trust, 2021-P3, Tranche A3, 0.700%, 11/10/26 | 550 | 543 |
See accompanying Notes to Financial Statements.
84 | Annual Report | December 31, 2021 |
Short Duration Bond Fund (formerly known as Income Fund)
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Principal Amount | Value | |||||||
Asset-Backed Securities—(continued) | |||||||||
Automobile—(continued) | |||||||||
Enterprise Fleet Financing LLC—144A, 2021-3, Tranche A2, 0.770%, 8/20/27 | $250 | $ | 249 | ||||||
GM Financial Automobile Leasing Trust, 2020-1, Tranche C, 2.040%, 12/20/23 | 950 | 957 | |||||||
JPMorgan Chase Bank NA - CACLN—144A, 2021-3, Tranche B, 0.760%, 2/26/29 | 403 | 401 | |||||||
Nissan Auto Lease Trust, 2021-A, Tranche A3, 0.520%, 8/15/24 | 855 | 851 | |||||||
Santander Consumer Auto Receivables Trust—144A, 2020-BA, Tranche A3, 0.460%, 8/15/24 | 143 | 143 | |||||||
Tesla Auto Lease Trust—144A, 2019-A, Tranche C, 2.680%, 1/20/23 | 700 | 709 | |||||||
Total Automobile | 4,554 | ||||||||
Other—4.7% | |||||||||
CCG Receivables Trust—144A, 2021-2, Tranche A2, 0.540%, 3/14/29 | 370 | 368 | |||||||
GreatAmerica Leasing Receivables Funding LLC—144A, 2021-2, Tranche A1, 0.149%, 10/17/22 | 96 | 96 | |||||||
GreatAmerica Leasing Receivables Funding LLC—144A, 2021-1, Tranche A3, 0.340%, 8/15/24 | 600 | 595 | |||||||
GreatAmerica Leasing Receivables Funding LLC—144A, 2021-2, Tranche A3, 0.670%, 7/15/25 | 335 | 332 | |||||||
Verizon Owner Trust, 2020-A, Tranche C, 2.060%, 7/22/24 | 425 | 430 | |||||||
Total Other | 1,821 | ||||||||
Total Asset-Backed Securities | 6,375 | ||||||||
Corporate Obligations—42.8% | |||||||||
Financials—24.7% | |||||||||
Bank of America Corporation, SOFR + 0.910%, 0.981%, due 9/25/25, VRN | 700 | 692 | |||||||
Brookfield Finance, Inc., 4.250%, due 6/2/26 | 550 | 605 | |||||||
Canadian Imperial Bank of Commerce, SOFR + 0.800%, 0.850%, due 3/17/23, VRN | 400 | 402 | |||||||
Capital One Financial Corporation, 4.200%, due 10/29/25 | 300 | 326 | |||||||
Citigroup, Inc., SOFR + 0.770%, 0.820%, due 6/9/27, VRN | 625 | 630 | |||||||
Credit Suisse AG, SOFR + 0.450%, 0.500%, due 2/4/22, VRN | 250 | 250 | |||||||
JPMorgan Chase & Co., SOFR + 3.125%, 4.600%, due 2/1/25, VRN | 350 | 360 |
Issuer | Principal Amount | Value | |||||||
Corporate Obligations—(continued) | |||||||||
Financials—(continued) | |||||||||
JPMorgan Chase & Co., SOFR + 0.765%, 0.815%, due 9/22/27, VRN | $400 | $ | 402 | ||||||
KeyBank NA, SOFR + 0.340%, 0.390%, due 1/3/24, VRN | 350 | 350 | |||||||
Morgan Stanley, SOFR + 0.745%, 0.864%, due 10/21/25, VRN | 550 | 543 | |||||||
New York Life Global Funding—144A, SOFR + 0.480%, 0.530%, due 6/9/26, VRN | 600 | 602 | |||||||
Owl Rock Capital Corporation, 2.875%, due 6/11/28 | 250 | 246 | |||||||
Royal Bank of Canada, SOFR + 0.340%, 0.389%, due 10/7/24, VRN | 925 | 925 | |||||||
Simon Property Group L.P., 3.300%, due 1/15/26 | 550 | 583 | |||||||
Skandinaviska Enskilda Banken AB—144A, 0.850%, due 9/2/25 | 500 | 490 | |||||||
The Bank of Nova Scotia, SOFR + 0.545%, 0.595%, due 3/2/26, VRN | 675 | 675 | |||||||
The Charles Schwab Corporation, SOFR + 0.520%, 0.570%, due 5/13/26, VRN | 470 | 471 | |||||||
The Goldman Sachs Group, Inc., SOFR + 0.810%, 0.860%, due 3/9/27, VRN | 600 | 604 | |||||||
Wells Fargo & Co., 4.480%, due 1/16/24 | 400 | 425 | |||||||
Total Financials | 9,581 | ||||||||
Consumer Discretionary—4.1% | |||||||||
American Honda Finance Corporation, 1.200%, due 7/8/25 | 450 | 449 | |||||||
Brunswick Corporation, 0.850%, due 8/18/24 | 250 | 246 | |||||||
Hyatt Hotels Corporation, 1.300%, due 10/1/23 | 250 | 250 | |||||||
Toyota Motor Credit Corporation, SOFR + 0.330%, 0.379%, due 1/11/24, VRN | 650 | 650 | |||||||
Total Consumer Discretionary | 1,595 | ||||||||
Consumer Staples—2.5% | |||||||||
JDE Peet’s N.V.—144A, 0.800%, due 9/24/24 | 250 | 245 | |||||||
The Hershey Co., 0.900%, due 6/1/25 | 525 | 519 | |||||||
The Kroger Co., 8.000%, due 9/15/29 | 150 | 208 | |||||||
Total Consumer Staples | 972 | ||||||||
Information Technology—2.3% | |||||||||
Analog Devices, Inc., SOFR + 0.250%, 0.300%, due 10/1/24, VRN | 125 | 125 | |||||||
HP, Inc.—144A, 1.450%, due 6/17/26 | 350 | 344 | |||||||
Intuit, Inc., 0.950%, due 7/15/25 | 450 | 444 | |||||||
Total Information Technology | 913 |
See accompanying Notes to Financial Statements.
December 31, 2021 | William Blair Funds | 85 |
Short Duration Bond Fund (formerly known as Income Fund)
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Principal Amount | Value | |||||||
Corporate Obligations—(continued) | |||||||||
Energy—2.0% | |||||||||
Baker Hughes Holdings LLC, 1.231%, due 12/15/23 | $100 | $ | 101 | ||||||
ConocoPhillips Co., 4.950%, due 3/15/26 | 400 | 452 | |||||||
Enbridge, Inc., 0.550%, due 10/4/23 | 75 | 74 | |||||||
S.A. Global Sukuk Ltd.—144A, 1.602%, due 6/17/26 | 175 | 172 | |||||||
Total Energy | 799 | ||||||||
Communication Services—2.0% | |||||||||
AT&T, Inc., 4.125%, due 2/17/26 | 350 | 382 | |||||||
Comcast Corporation, 3.950%, due 10/15/25 | 350 | 383 | |||||||
Total Communication Services | 765 | ||||||||
Industrials—1.5% | |||||||||
Caterpillar Financial Services Corporation, SOFR + 0.245%, 0.295%, due 5/17/24, VRN | 350 | 350 | |||||||
Sealed Air Corp.—144A, 1.573%, due 10/15/26 | 250 | 243 | |||||||
Total Industrials | 593 | ||||||||
Health Care—1.5% | |||||||||
GlaxoSmithKline Capital plc, 0.534%, due 10/1/23 | 300 | 299 | |||||||
HCA, Inc., 5.375%, due 2/1/25 | 250 | 275 | |||||||
Total Health Care | 574 | ||||||||
Materials—1.0% | |||||||||
Ecolab, Inc., 0.900%, due 12/15/23 | 100 | 100 | |||||||
Fibria Overseas Finance, Ltd., 5.500%, due 1/17/27 | 250 | 280 | |||||||
Total Basic Materials | 380 | ||||||||
Utilities—0.8% | |||||||||
The Southern Co., SOFR + 0.370%, 0.420%, due 5/10/23, VRN | 300 | 299 | |||||||
Real Estate—0.4% | |||||||||
Public Storage, SOFR + 0.470%, 0.520%, due 4/23/24, VRN | 175 | 175 | |||||||
Total Corporate Obligations | 16,646 | ||||||||
Total Long-Term Investments—98.0% (cost $37,884) | 38,069 |
Issuer | Principal Amount | Value | |||||||
Repurchase Agreement | |||||||||
Fixed Income Clearing Corporation, 0.000% dated 12/31/21, due 1/3/22, repurchase price $130, collateralized by U.S. Treasury Note, 1.000%, due 7/31/28, valued at $133. | $130 | $ | 130 | ||||||
Total Repurchase Agreement—0.3% (cost $130) | 130 | ||||||||
�� | |||||||||
Commercial Paper—1.3% | |||||||||
The Stanley Works, 0.081%, due 1/3/22 | 500 | 500 | |||||||
Total Commercial Paper—1.3% (cost $500) | 500 | ||||||||
Total Investments—99.6% (cost $38,514) | 38,699 | ||||||||
Securities Sold, Not Yet Purchased | |||||||||
U.S. Government Agency—(10.5)% | |||||||||
Federal National Mortgage Association (FNMA)—(10.5)% | |||||||||
TBA, 2.000%, due 1/1/52 | (500 | ) | (499 | ) | |||||
TBA, 2.500%, due 1/1/52 | (2,500 | ) | (2,552 | ) | |||||
TBA, 3.000%, due 1/1/52 | (1,000 | ) | (1,036 | ) | |||||
Total FNMA Mortgage Obligations | (4,087 | ) | |||||||
Total Securities Sold, Not Yet Purchased—(10.5)% (proceeds $4,082) | (4,087 | ) | |||||||
Cash and other assets, less liabilities—10.9% | 4,230 | ||||||||
Net assets—100.0% | $ | 38,842 |
The obligations of certain U.S. Government-sponsored securities are neither issued nor guaranteed by the U.S. Treasury.
144A = Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
LIBOR = London Interbank Offered Rate
SOFR = Secured Overnight Financing Rate
TBA = To Be Announced —TBAs are mortgage-backed securities traded under delayed delivery commitments, settling after December 31, 2021. The term TBA comes from the fact that the specific mortgage-backed security that will be delivered to fulfill a TBA trade is not designated at the time the trade is made.
VRN = Variable Rate Note
(a) Security, or a portion of security, is segregated as collateral for the centrally cleared credit default swap, aggregating a total of $199 (in thousands).
Centrally Cleared Credit Default Swaps | ||||||||||||||||||||||||||||
Reference Entity | Buy/Sell Protection | Fixed Rate | Payment Frequency | Maturity Date | Cleared Exchange | Notional Amount (in thousands) | Upfront Payment Paid (Received) | Value | Unrealized Appreciation (Depreciation) | |||||||||||||||||||
CDX.NA.HY-34 | Buy | 5.000% | 3M | June 2025 | ICE | $4,600 | $(454) | $(384) | $70 |
See accompanying Notes to Financial Statements.
86 | Annual Report | December 31, 2021 |
December 31, 2021 | William Blair Funds | 87 |
Ultra-Short Duration Bond Fund (formerly known as Low Duration Fund)
Performance Highlights (Unaudited)
Average Annual Total Returns through 12/31/2021
1 Year(a) | 3 Year | 5 Year | 10 Year | |||||||||||||
Class N | (0.73 | )% | 1.75 | % | 1.38 | % | 1.14 | % | ||||||||
Class I | (0.47 | ) | 1.91 | 1.55 | 1.31 | |||||||||||
Class R6 | (0.42 | ) | 1.96 | 1.60 | 1.38 | |||||||||||
ICE BofAML 1-Year US Treasury Note Index | (0.07 | ) | 1.55 | 1.42 | 0.86 |
(a) | The impact of the Voluntary Payment from Adviser was 0.16% for Class N, Class I and Class R6. |
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are average annual total returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272, or visit our Web site at www.williamblairfunds.com. From time to time, the investment adviser may waive fees or reimburse expenses for the Fund. Without these waivers/reimbursements, performance would be lower. Class N shares are not subject to a sales load. Class I shares are not subject to a sales load or distribution (Rule 12b-1) fees. Class R6 shares are not subject to a sales load, distribution (Rule 12b-1) fees, or sub-transfer agent fees.
The performance highlights and graph presented above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The ICE BofAML 1-Year US Treasury Note Index is comprised of a single U.S. Treasury Note issue purchased at the beginning of the month and held for a full month. Each month the index is rebalanced and the issue selected is the outstanding U.S. Treasury Note that matures closest to, but not beyond one year from the rebalancing date.
This report identifies the Fund’s investments on December 31, 2021. These holdings are subject to change. Not all investments in the Fund performed the same, nor is there any guarantee that these investments will perform as well in the future. Market forecasts provided in this report may not necessarily come to pass.
Sector Diversification (Unaudited)
The sector diversification shown is based on the total investments.
88 | Annual Report | December 31, 2021 |
Ultra-Short Duration Bond Fund (formerly known as Low Duration Fund)
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Principal Amount | Value | ||||||
U.S. Government and U.S. Government Agency—40.9% | ||||||||
U.S. Treasury—8.8% | ||||||||
U.S. Treasury Bill, 0.044%, due 3/17/22 | $ | 515 | $ | 515 | ||||
U.S. Treasury Bill, 0.049%, due 4/21/22 | 515 | 515 | ||||||
U.S. Treasury Bill, 0.075%, due 7/14/22 | 515 | 515 | ||||||
U.S. Treasury Note, 2.500%, due 1/15/22 | 2,300 | 2,302 | ||||||
U.S. Treasury Note, 0.199%, due 4/30/22 | 500 | 500 | ||||||
U.S. Treasury Note, 0.125%, due 8/31/22 | 260 | 260 | ||||||
U.S. Treasury Note, 0.125%, due 1/31/23 | 1,125 | 1,121 | ||||||
U.S. Treasury Note, 0.119%, due 4/30/23 | 2,500 | 2,500 | ||||||
U.S. Treasury Note, 0.125%, due 7/31/23 | 1,125 | 1,116 | ||||||
Total U.S. Treasury | 9,344 | |||||||
Federal Home Loan Mortgage Corp. (FHLMC)—8.9% | ||||||||
#G12725, 6.000%, due 6/1/22 | 3 | 3 | ||||||
K023, Tranche A2, 2.307%, due 8/25/22 | 1,250 | 1,261 | ||||||
K028, Tranche A2, 3.111%, due 2/25/23 | 504 | 515 | ||||||
K029, Tranche A2, 3.320%, due 2/25/23, VRN | 1,442 | 1,478 | ||||||
K726, Tranche A2, 2.905%, due 4/25/24 | 861 | 892 | ||||||
#C00351, 8.000%, due 7/1/24 | 11 | 11 | ||||||
#G00363, 8.000%, due 6/1/25 | 20 | 21 | ||||||
#C80329, 8.000%, due 8/1/25 | 3 | 4 | ||||||
#G14643, 4.000%, due 8/1/26 | 49 | 52 | ||||||
#G14550, 4.500%, due 9/1/26 | 267 | 279 | ||||||
#G15360, 4.500%, due 11/1/26 | 111 | 117 | ||||||
#G04821, 8.500%, due 7/1/31 | 890 | 1,058 | ||||||
#G02454, 6.500%, due 7/1/32 | 381 | 426 | ||||||
4427, Tranche MA, 3.000%, due 2/15/34 | 1,676 | 1,732 | ||||||
#G06085, 6.500%, due 9/1/38 | 28 | 33 | ||||||
#G60680, 6.500%, due 9/1/39 | 445 | 516 | ||||||
#G61050, 5.500%, due 3/1/41 | 223 | 256 | ||||||
FHR 5113, Tranche CE, 1.000%, due 1/25/43 | 777 | 778 | ||||||
Total FHLMC Mortgage Obligations | 9,432 | |||||||
Federal National Mortgage Association (FNMA)—20.7% | ||||||||
#323933, 7.000%, due 9/1/29 | 166 | 189 | ||||||
#880993, 6.000%, due 1/1/22 | — | (a) | — | (a) | ||||
#888982, 6.000%, due 12/1/22 | 6 | 6 | ||||||
#AM2182, 2.160%, due 1/1/23 | 675 | 682 | ||||||
#AN1746, 2.150%, due 9/1/23 | 1,019 | 1,034 | ||||||
#995395, 6.000%, due 12/1/23 | 2 | 2 | ||||||
#190988, 9.000%, due 6/1/24 | — | (a) | — | (a) |
Issuer | Principal Amount | Value | ||||||
U.S. Government and U.S. Government Agency—(continued) | ||||||||
Federal National Mortgage Association (FNMA)—(continued) | ||||||||
#AL8529, 6.000%, due 11/1/24 | $ | 827 | $ | 852 | ||||
#AL2853, 4.500%, due 6/1/26 | 487 | 509 | ||||||
#AL9730, 4.500%, due 2/1/27 | 871 | 913 | ||||||
#AL9870, 6.500%, due 2/1/28 | 373 | 411 | ||||||
#AL4502, 4.000%, due 11/1/28 | 328 | 351 | ||||||
#AL9857, 4.000%, due 2/1/29 | 2,375 | 2,502 | ||||||
#555933, 7.000%, due 6/1/32 | 219 | 243 | ||||||
#555866, 7.500%, due 3/1/33 | 129 | 148 | ||||||
#745409, 7.000%, due 4/1/33 | 299 | 331 | ||||||
#CA2754, 4.500%, due 11/1/33 | 70 | 76 | ||||||
#725228, 6.000%, due 3/1/34 | 567 | 646 | ||||||
#AL6413, 8.000%, due 8/1/34 | 105 | 117 | ||||||
#AD0720, 5.500%, due 12/1/34 | 157 | 178 | ||||||
#AL6412, 7.500%, due 9/1/35 | 418 | 472 | ||||||
#886762, 7.000%, due 9/1/36 | 139 | 163 | ||||||
#AD0731, 7.500%, due 8/1/37 | 1,233 | 1,457 | ||||||
#888530, 7.500%, due 8/1/37 | 1,156 | 1,383 | ||||||
#AL6411, 7.000%, due 12/1/37 | 811 | 927 | ||||||
#AD0100, 7.000%, due 12/1/38 | 337 | 404 | ||||||
#FM2467, 6.000%, due 1/1/39 | 1,318 | 1,551 | ||||||
#AL9226, 5.500%, due 12/1/41 | 1,948 | 2,250 | ||||||
#BM1328, 6.000%, due 1/1/42 | 990 | 1,153 | ||||||
#AL6276, 5.500%, due 10/1/43 | 107 | 121 | ||||||
#BM5121, 5.500%, due 12/1/48 | 791 | 928 | ||||||
#CA5837, 6.000%, due 7/1/49 | 1,116 | 1,309 | ||||||
2021-58, Tranche F, SOFR30A + 0.200%, 0.248%, due 9/25/61, VRN | 664 | 659 | ||||||
Total FNMA Mortgage Obligations | 21,967 | |||||||
Government National Mortgage Association (GNMA)—1.7% | ||||||||
2021-160, Tranche MA, 1.000%, due 1/20/50 | 1,842 | 1,832 | ||||||
Collateralized Mortgage Obligation—0.8% | ||||||||
Seasoned Loans Structured Transaction Trust, 3.500%, due 6/25/28 | 820 | 843 | ||||||
Commercial Mortgage-Backed Securities—4.5% | ||||||||
JP Morgan Chase Commercial Mortgage Securities Trust—144A, 2021-NYAH, Tranche A, 1M USD LIBOR + 0.760%, 0.870%, 6/15/38, VRN | 1,895 | 1,893 | ||||||
Med Trust—144A, 2021-MDLN, Tranche A, 1M USD LIBOR + 0.950%, 1.060%, 11/15/38, VRN | 2,000 | 2,001 | ||||||
Med Trust—144A, 2021-MDLN, Tranche B, 1M USD LIBOR + 1.450%, 1.560%, 11/15/38, VRN | 885 | 884 | ||||||
Total Commercial Mortgage-Backed Securities | 4,778 |
See accompanying Notes to Financial Statements.
December 31, 2021 | William Blair Funds | 89 |
Ultra-Short Duration Bond Fund (formerly known as Low Duration Fund)
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Principal Amount | Value | ||||||
Asset-Backed Securities—14.7% | ||||||||
Automobile—8.7% | ||||||||
Canadian Pacer Auto Receivables Trust—144A, 2021-1A, Tranche A1, 0.121%, 10/19/22 | $ | 447 | $ | 447 | ||||
Canadian Pacer Auto Receivables Trust—144A, 2021-1A, Tranche A2A, 0.240%, 10/19/23 | 570 | 569 | ||||||
CarMax Auto Owner Trust, 2020-1, Tranche C, 2.340%, 11/17/25 | 600 | 612 | ||||||
Carvana Auto Receivables Trust, 2021-P3, Tranche A3, 0.700%, 11/10/26 | 1,450 | 1,432 | ||||||
Enterprise Fleet Financing LLC—144A, 2021-3, Tranche A2, 0.770%, 8/20/27 | 700 | 696 | ||||||
GM Financial Automobile Leasing Trust, 2020-1, Tranche C, 2.040%, 12/20/23 | 1,400 | 1,411 | ||||||
JPMorgan Chase Bank NA - CACLN—144A, 2021-3, Tranche B, 0.760%, 2/26/29 | 1,083 | 1,077 | ||||||
Mercedes-Benz Auto Lease Trust, 2020-B, Tranche A2, 0.310%, 2/15/23 | 103 | 103 | ||||||
Tesla Auto Lease Trust—144A, 2019-A, Tranche C, 2.680%, 1/20/23 | 1,625 | 1,646 | ||||||
Volkswagen Auto Loan Enhanced Trust, 2021-1, Tranche A2, 0.490%, 10/21/24 | 1,215 | 1,215 | ||||||
Total Automobile | 9,208 | |||||||
Credit Card—0.4% | ||||||||
American Express Credit Account Master Trust, 2017-5, Tranche B, 1M USD LIBOR + 0.580%, 0.690%, 2/18/25, VRN | 450 | 451 | ||||||
Other—5.6% | ||||||||
CCG Receivables Trust—144A, 2021-2, Tranche A2, 0.540%, 3/14/29 | 1,025 | 1,019 | ||||||
CNH Equipment Trust, 2021-C, Tranche A2, 0.330%, 1/15/25 | 965 | 963 | ||||||
GreatAmerica Leasing Receivables Funding LLC—144A, 2021-2, Tranche A2, 0.380%, 3/15/24 | 1,425 | 1,420 | ||||||
GreatAmerica Leasing Receivables Funding LLC—144A, 2021-2, Tranche A3, 0.670%, 7/15/25 | 475 | 470 | ||||||
Kubota Credit Owner Trust—144A, 2020-2A, Tranche A2, 0.410%, 6/15/23 | 735 | 735 |
Issuer | Principal Amount | Value | ||||||
Asset-Backed Securities—(continued) | ||||||||
Other—(continued) | ||||||||
Verizon Owner Trust, 2020-A, Tranche C, 2.060%, 7/22/24 | $ | 1,250 | $ | 1,266 | ||||
Total Other | 5,873 | |||||||
Total Asset-Backed Securities | 15,532 | |||||||
Corporate Obligations—39.2% | ||||||||
Financials—29.6% | ||||||||
Bank of America Corporation, SOFR + 0.970%, 1.020%, due 7/22/27, VRN | 1,850 | 1,883 | ||||||
Bank of Montreal, SOFR + 0.680%, 0.730%, due 3/10/23, VRN | 2,000 | 2,008 | ||||||
Canadian Imperial Bank of Commerce, SOFR + 0.400%, 0.450%, due 12/14/23, VRN | 1,900 | 1,900 | ||||||
Citigroup, Inc., SOFR + 0.770%, 0.820%, due 6/9/27, VRN | 1,250 | 1,260 | ||||||
Credit Suisse AG, 0.520%, due 8/9/23 | 950 | 943 | ||||||
JPMorgan Chase & Co., SOFR + 0.885%, 0.934%, due 4/22/27, VRN | 1,075 | 1,090 | ||||||
JPMorgan Chase & Co., SOFR + 0.765%, 0.815%, due 9/22/27, VRN | 1,525 | 1,532 | ||||||
KeyBank NA, SOFR + 0.340%, 0.390%, due 1/3/24, VRN | 2,000 | 1,999 | ||||||
Met Tower Global Funding—144A, SOFR + 0.550%, 0.599%, due 1/17/23, VRN | 1,481 | 1,486 | ||||||
New York Life Global Funding—144A, SOFR + 0.480%, 0.530%, due 6/9/26, VRN | 1,750 | 1,755 | ||||||
Royal Bank of Canada, SOFR + 0.525%, 0.574%, due 1/20/26, VRN | 1,500 | 1,498 | ||||||
Royal Bank of Canada, SOFR + 0.340%, 0.389%, due 10/7/24, VRN | 1,875 | 1,875 | ||||||
The Bank of New York Mellon Corporation, SOFR + 0.200%, 0.250%, due 10/25/24, VRN | 2,080 | 2,074 | ||||||
The Bank of Nova Scotia, SOFR + 0.545%, 0.595%, due 3/2/26, VRN | 980 | 981 | ||||||
The Bank of Nova Scotia, SOFR + 0.260%, 0.310%, due 9/15/23, VRN | 1,300 | 1,298 | ||||||
The Charles Schwab Corporation, SOFR + 0.520%, 0.570%, due 5/13/26, VRN | 2,500 | 2,509 |
See accompanying Notes to Financial Statements.
90 | Annual Report | December 31, 2021 |
Ultra-Short Duration Bond Fund (formerly known as Low Duration Fund)
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Principal Amount | Value | ||||||
Corporate Obligations—(continued) | ||||||||
Financials—(continued) | ||||||||
The Goldman Sachs Group, Inc., SOFR + 0.810%, 0.860%, due 3/9/27, VRN | $ | 1,300 | $ | 1,308 | ||||
The Toronto-Dominion Bank, SOFR + 0.355%, 0.405%, due 3/4/24, VRN | 2,700 | 2,701 | ||||||
Truist Financial Corporation, SOFR + 0.400%, 0.450%, due 6/9/25, VRN | 1,305 | 1,302 | ||||||
Total Financials | 31,402 | |||||||
Consumer Discretionary—2.6% | ||||||||
BMW US Capital LLC Co.—144A, SOFR + 0.530%, 0.580%, due 4/1/24, VRN | 500 | 503 | ||||||
Toyota Motor Credit Corporation, SOFR + 0.330%, 0.379%, due 1/11/24, VRN | 2,275 | 2,275 | ||||||
Total Consumer Discretionary | 2,778 | |||||||
Industrials—2.6% | ||||||||
Caterpillar Financial Services Corporation, SOFR + 0.245%, 0.295%, due 5/17/24, VRN | 2,750 | 2,751 | ||||||
Real Estate—1.9% | ||||||||
Public Storage, SOFR + 0.470%, 0.520%, due 4/23/24, VRN | 2,005 | 2,003 | ||||||
Utilities—1.3% | ||||||||
Florida Power & Light Co., SOFR + 0.250%, 0.300%, due 5/10/23, VRN | 1,375 | 1,371 | ||||||
Information Technology—1.2% | ||||||||
Analog Devices, Inc., SOFR + 0.250%, 0.300%, due 10/1/24, VRN | 325 | 326 | ||||||
Intuit, Inc., 0.650%, due 7/15/23 | 1,000 | 997 | ||||||
Total Information Technology | 1,323 | |||||||
Total Corporate Obligations | 41,628 | |||||||
Total Long-Term Investments—99.3% (cost $105,766) | 105,356 | |||||||
Total Investments—99.3% (cost $105,766) | 105,356 |
Issuer | Principal Amount | Value | ||||||
Securities Sold, Not Yet Purchased | ||||||||
U.S. Government Agency—(10.6)% | ||||||||
Federal National Mortgage Association (FNMA)—(10.6)% | ||||||||
TBA, 2.000%, due 1/1/52 | $(1,500 | ) | $ | (1,496 | ) | |||
TBA, 2.500%, due 1/1/52 | (7,500 | ) | (7,656 | ) | ||||
TBA, 3.000%, due 1/1/52 | (2,000 | ) | (2,073 | ) | ||||
Total FNMA Mortgage Obligations | (11,225 | ) | ||||||
Total Securities Sold, Not Yet Purchased—(10.6)% (proceeds $11,211) | (11,225 | ) | ||||||
Cash and other assets, less liabilities—11.3% | 12,020 | |||||||
Net assets—100.0% | $ | 106,151 |
The obligations of certain U.S. Government-sponsored securities are neither issued nor guaranteed by the U.S. Treasury.
144A = Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
LIBOR = London Interbank Offered Rate
SOFR = Secured Overnight Financing Rate
TBA = To Be Announced—TBAs are mortgage-backed securities traded under delayed delivery commitments, settling after December 31, 2021. The term TBA comes from the fact that the specific mortgage-backed security that will be delivered to fulfill a TBA trade is not designated at the time the trade is made.
VRN = Variable Rate Note
(a) Amount is less than the minimum amount disclosed.
See accompanying Notes to Financial Statements.
December 31, 2021 | William Blair Funds | 91 |
Emerging Markets Debt Market Review and Outlook
2021 was a very volatile year for emerging markets (EM) debt investors. In the beginning of the year, optimism about vaccine rollouts and the approval of a $1.9 trillion fiscal package in the United States shored up expectations for a sharp global economic recovery. A positive combination of improving global growth prospects and favorable liquidity conditions sustained investor sentiment, leading to higher equity and commodity prices and tighter credit spreads during most of the first half of the year.
However, market conditions deteriorated for EM debt investors in the second half of 2021 as sentiment weakened on a combination of increased concerns about the strength of the global economy, persistently high inflation, global supply-chain disruptions, rising energy prices, and late in the year resurgence of COVID-19 related concerns. In the United States, bond yields rose sharply, and the U.S. dollar strengthened as strong inflationary pressures led investors to anticipate an earlier start to monetary policy normalization.
In this environment, the credit spread of the J.P. Morgan Emerging Markets Bond Index Global Diversified (the “Index”), after compressing by 12 bps during the first half of the year, widened by 29 bps in the second half, ending the year at 369 bps, for a net increase of 17 bps during the year. In 2021 the Index returned -1.80%, in U.S. dollar terms. Despite the overall negative market environment for most the year, high-yielding countries outperformed high-grade countries over the period, reflecting to a large extent their lower sensitivity to rising U.S. Treasury yields.
While we retain a constructive medium- to long-term outlook for EM debt, we anticipate that investors will continue to experience several headwinds in the near term, including concerns about disruptions created by the COVID-19 pandemic, rising energy prices, persistently high inflation, and monetary policy tightening globally. Despite these headwinds, we believe EM debt offers attractive value to investors with medium- to long-term focus and willingness to tolerate short-term periods of higher volatility.
We believe the fundamentals for EM debt should continue to improve in 2022. We estimate that gross domestic product (GDP) growth in EM countries will reach 4.8% in 2022, below the 7% growth rate seen in 2021 but above pre-COVID-19 trend levels. Meanwhile, we believe EM fiscal accounts should improve to -5.5% of GDP in 2022, from -6% in 2021 and -7.7% in 2020. At 1.6% of GDP, EM countries have maintained strong basic balance levels, highlighting the resilience of EM external accounts even during the pandemic.
EM government debt as a percentage of GDP should stabilize at just over 60%. Inflation in EM is expected to decline to 4.2% in 2022 from 4.3% in 2021. We anticipate that EM exports will increase by 7.9% in 2022 compared to 2021, reflecting improvements in global trade and high commodity prices.
In the EM corporate credit space, we believe that fundamentals remain solid, although we don’t expect further improvement. At an aggregate level, in our view, balance sheets and maturity profiles remain healthy, despite a slight increase in capital expenditures. But we believe year-over-year comparisons will become less favorable into 2022 given the strong growth rates of last year.
We believe that technical conditions should remain supportive in 2022 as debt supply remains constrained because of declining net refinancing needs, which occurred due to improved fiscal accounts and prefinancing activities. We also expect inflows to EM debt portfolios to continue to recover as allocations to the asset class by global investors are well below peak levels and not in line with the size of the opportunity set, especially in the context of very attractive relative valuations versus developed market credit. However, this overall positive technical backdrop should be partly offset in the near term by seasonally high net debt issuance in the beginning of the year.
In our view, EM debt appears attractively valued on both an absolute and relative basis, as spreads have remained wider than historical levels. EM sovereign high-yield spreads appear very compelling, as they are at heightened levels compared with their 10-year averages. EM sovereign high-yield spreads are particularly attractive versus U.S. high-yield levels. EM credit spreads are well above developed market credit spreads and significantly wider than their 10-year averages.
In this overall environment, we expect EM debt credit spreads to remain stable in the next few months before resuming their long-term compression trend once the aforementioned headwinds start to dissipate later in the year, reflecting an improving fundamental picture, supportive technical conditions, and attractive valuations.
92 | Annual Report | December 31, 2021 |
December 31, 2021 | William Blair Funds | 93 |
Emerging Markets Debt Fund
Medium-Risk Countries
In medium-risk countries, off-benchmark corporate debt positions in Brazil and Guatemala and an overweight position in Jamaica added the most to performance during the year, while overweight positions in Bahrain, Oman, and Mexico detracted the most.
Our diverse corporate positions contributed to security selection in Brazil. Performance was led by investments in an iron ore/steel producer and two consumer sector companies. Performance was offset by an oil and gas investment affected by an abrupt government intervention in the company’s management.
In Guatemala, our overweight position in select corporate credit contributed to performance. Two positions in the utility sector—one in distribution and the other focused on renewable energy—outperformed benchmark sovereign debt in 2021. In our view, the positions continue to offer attractive yields and display improving fundamentals.
In Jamaica, our off-benchmark position in selected corporate credit in the financial sector contributed positively to performance.
In Bahrain, our overweight position underperformed despite higher oil prices and an increase in the domestic value-added tax (VAT) rate. We believe this should help restore some credibility in the fiscal reform program. Our positioning, however, was focused on the long end of the curve, which has been negatively impacted by a steepening of the curve.
Our overweight position in Oman generated alpha due to the country level outperformance that was driven by a strong fiscal consolidation effort. However, this was more than offset by negative security selection as the long end bonds where our positioning has been concentrated underperformed as curve steepened significantly throughout the year on sizeable issuance.
Lastly, in Mexico underperformance was driven primarily by a corporate position in a leasing company.
Lower-Risk Countries
In lower-risk countries, underweight positions in Malaysia and overweight positions in India and Indonesia contributed the most to performance, while off-benchmark positions in China and overweight positions in Romania and the UAE detracted the most.
In Malaysia, the outperformance was attributed mostly to our overweighting a short-dated quasi-sovereign issue while underweighting the rest of the sovereign curve.
In India, positions in off-benchmark corporate credit worked well following the growth rebound of the Indian economy. This offered some cushion to bond prices despite market risk-off during the year.
In Indonesia, overweight positions in quasi-sovereign bonds contributed to performance as quasi-sovereign bonds outperformed sovereign bonds during the period. Moreover, positions in off-benchmark corporate credit also contributed to performance.
In China, performance was hurt by overweight positions in corporate credit. Because Chinese corporate credit risk appeared oversold earlier in the fourth quarter, we increased our exposure to the segment. However, the lack of support measures from the government and the slow, drawn out process of some default cases in the Chinese property sector resulted in further underperformance. We expect volatility to remain but ultimately prove to offer good entry points as the sector resets.
In Romania, sentiment was hit by a collapse in the ruling government coalition. This damaged investor sentiment as the market had been optimistic that the technocrats were expected to continue along the fiscal consolidation path. In our view, sentiment is likely to remain weak until a new coalition is in place that can restore market confidence.
Lastly, In the UAE, our underweight position in sovereign bonds hurt performance. As large oil exporter, the UAE’s economy benefited from rising oil prices; this shielded the country somewhat from the volatility seen elsewhere across emerging markets during 2021.
Please refer to the Emerging Markets Debt Market Review and Outlook relating to the Fund on page 92.
94 | Annual Report | December 31, 2021 |
Emerging Markets Debt Fund
Performance Highlights (Unaudited)
Average Annual Total Returns through 12/31/2021 | ||||
Since Inception(a) | ||||
Class I | (1.39 | )% | ||
Class R6 | (1.32 | ) | ||
JPMorgan EMBI Global Diversified | (0.22 | ) |
(a) | Since inception is for the period from May 25, 2021 (Commencement of Operations) to December 31, 2021. |
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are average annual total returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272, or visit our Web site at www.williamblairfunds.com. From time to time, the investment adviser may waive fees or reimburse expenses for the Fund. Without these waivers/reimbursements, performance would be lower. Class I shares are not subject to a sales load or distribution (Rule 12b-1) fees. Class R6 shares are not subject to a sales load, distribution (Rule 12b-1) fees, or sub-transfer agent fees.
The performance highlights and graph presented above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The JP Morgan Emerging Markets Bond Index (EMBI) Global Diversified tracks the total return of U.S.-dollar denominated debt instruments issued by sovereign and quasi-sovereign entities.
This report identifies the Fund’s investments on December 31, 2021. These holdings are subject to change. Not all investments in the Fund performed the same, nor is there any guarantee that these investments will perform as well in the future. Market forecasts provided in this report may not necessarily come to pass.
Sector Diversification (Unaudited)
The sector diversification shown is based on the total investments.
December 31, 2021 | William Blair Funds | 95 |
Emerging Markets Debt Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Principal Amount | Value | |||||||
Foreign Government Bonds—61.5% | |||||||||
Albania—0.4% | |||||||||
Albania Government International Bond—144A, 3.500%, due 11/23/31 | EUR | 200 | $ | 224 | |||||
Angola—1.8% | |||||||||
Angolan Government International Bond, 8.000%, due 11/26/29 | $ | 500 | 493 | ||||||
Angolan Government International Bond, 9.500%, due 11/12/25 | 250 | 267 | |||||||
Angolan Government International Bond, 9.125%, due 11/26/49 | 200 | 191 | |||||||
951 | |||||||||
Argentina—0.7% | |||||||||
Argentine Republic Government International Bond, 2.500%, due 7/9/41, VRN(a) | 475 | 168 | |||||||
Argentine Republic Government International Bond, 2.000%, due 1/9/38, VRN(a) | 300 | 115 | |||||||
Argentine Republic Government International Bond, 0.500%, due 7/9/30, VRN(a) | 275 | 97 | |||||||
380 | |||||||||
Bahrain—2.1% | |||||||||
Bahrain Government International Bond, 7.500%, due 9/20/47 | 400 | 405 | |||||||
Bahrain Government International Bond, 5.450%, due 9/16/32 | 400 | 387 | |||||||
Bahrain Government International Bond, 6.250%, due 1/25/51 | 300 | 274 | |||||||
1,066 | |||||||||
Bermuda—0.4% | |||||||||
Bermuda Government International Bond, 3.375%, due 8/20/50 | 200 | 200 | |||||||
Bolivia—0.4% | |||||||||
Bolivian Government International Bond, 4.500%, due 3/20/28 | 200 | 183 | |||||||
Brazil—1.7% | |||||||||
Brazilian Government International Bond, 5.625%, due 2/21/47 | 200 | 199 | |||||||
Brazilian Government International Bond, 5.625%, due 1/7/41 | 500 | 512 | |||||||
Brazilian Government International Bond, 3.750%, due 9/12/31 | 200 | 188 | |||||||
899 | |||||||||
Cameroon—0.5% | |||||||||
Republic of Cameroon—144A, 5.950%, due 7/7/32 | EUR | 250 | 266 | ||||||
Chile—1.4% | |||||||||
Chile Government International Bond, 3.250%, due 9/21/71 | $ | 200 | 184 | ||||||
Chile Government International Bond, 2.550%, due 7/27/33 | 550 | 535 | |||||||
719 |
Issuer | Principal Amount | Value | |||||||
Foreign Government Bonds—(continued) | |||||||||
Colombia—2.4% | |||||||||
Colombia Government International Bond, 6.125%, due 1/18/41 | $ | 830 | $ | 854 | |||||
Colombia Government International Bond, 5.625%, due 2/26/44 | 200 | 194 | |||||||
Colombia Government International Bond, 5.200%, due 5/15/49 | 200 | 184 | |||||||
1,232 | |||||||||
Costa Rica—0.7% | |||||||||
Costa Rica Government International Bond, 5.625%, due 4/30/43 | 400 | 342 | |||||||
Dominican Republic—2.3% | |||||||||
Dominican Republic International Bond, 4.875%, due 9/23/32 | 200 | 203 | |||||||
Dominican Republic International Bond, 6.400%, due 6/5/49 | 150 | 158 | |||||||
Dominican Republic International Bond, 5.875%, due 1/30/60 | 700 | 672 | |||||||
Dominican Republic International Bond, 6.850%, due 1/27/45 | 150 | 165 | |||||||
1,198 | |||||||||
Ecuador—2.0% | |||||||||
Ecuador Government International Bond, 5.000%, due 7/31/30, VRN(a) | 400 | 330 | |||||||
Ecuador Government International Bond, 1.000%, due 7/31/35, VRN(a) | 400 | 261 | |||||||
Ecuador Government International Bond, 0.500%, due 7/31/40, VRN(a) | 450 | 260 | |||||||
Ecuador Government International Bond, 0.000%, due 7/31/30 | 275 | 153 | |||||||
1,004 | |||||||||
Egypt—4.1% | |||||||||
Egypt Government International Bond, 4.750%, due 4/16/26 | EUR | 300 | 329 | ||||||
Egypt Government International Bond, 6.375%, due 4/11/31 | 150 | 157 | |||||||
Egypt Government International Bond, 3.875%, due 2/16/26 | $ | 250 | 234 | ||||||
Egypt Government International Bond, 8.875%, due 5/29/50 | 750 | 679 | |||||||
Egypt Government International Bond—144A, 5.800%, due 9/30/27 | 250 | 240 | |||||||
Egypt Government International Bond—144A, 7.300%, due 9/30/33 | 250 | 230 | |||||||
Egypt Government International Bond—144A, 8.750%, due 9/30/51 | 250 | 223 | |||||||
2,092 | |||||||||
El Salvador—0.6% | |||||||||
El Salvador Government International Bond, 7.625%, due 2/1/41 | 300 | 165 | |||||||
El Salvador Government International Bond, 9.500%, due 7/15/52 | 200 | 122 | |||||||
287 | |||||||||
Gabon—0.5% | |||||||||
Gabon Government International Bond—144A, 7.000%, due 11/24/31 | 250 | 244 |
See accompanying Notes to Financial Statements.
96 | Annual Report | December 31, 2021 |
Emerging Markets Debt Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Principal Amount | Value | |||||||
Foreign Government Bonds—(continued) | |||||||||
Ghana—1.9% | |||||||||
Ghana Government International Bond, 7.750%, due 4/7/29 | $ | 500 | $ | 417 | |||||
Ghana Government International Bond, 8.625%, due 4/7/34 | 400 | 324 | |||||||
Ghana Government International Bond, 8.125%, due 1/18/26 | 250 | 231 | |||||||
972 | |||||||||
Guatemala—0.4% | |||||||||
Guatemala Government Bond, 6.125%, due 6/1/50 | 200 | 229 | |||||||
Hungary—0.5% | |||||||||
Hungary Government International Bond, 3.125%, due 9/21/51 | 250 | 246 | |||||||
Indonesia—2.4% | |||||||||
Indonesia Government International Bond, 4.750%, due 2/11/29 | 300 | 349 | |||||||
Indonesia Government International Bond, 4.450%, due 4/15/70 | 250 | 297 | |||||||
Indonesia Government International Bond, 3.400%, due 9/18/29 | 550 | 594 | |||||||
1,240 | |||||||||
Iraq—1.6% | |||||||||
Iraq International Bond, 5.800%, due 1/15/28 | 203 | 194 | |||||||
Iraq International Bond, 6.752%, due 3/9/23 | 600 | 608 | |||||||
802 | |||||||||
Ivory Coast—0.4% | |||||||||
Ivory Coast Government International Bond, 6.625%, due 3/22/48 | EUR | 200 | 226 | ||||||
Jamaica—0.4% | |||||||||
Jamaica Government International Bond, 6.750%, due 4/28/28 | $ | 200 | 229 | ||||||
Jordan—0.4% | |||||||||
Jordan Government International Bond, 7.375%, due 10/10/47 | 200 | 202 | |||||||
Kenya—0.4% | |||||||||
Republic of Kenya Government International Bond, 8.250%, due 2/28/48 | 200 | 203 | |||||||
Lebanon—0.6% | |||||||||
Lebanon Government International Bond, 7.150%, due 11/20/31(b) | 1,200 | 120 | |||||||
Lebanon Government International Bond, 6.850%, due 3/23/27(b) | 600 | 60 | |||||||
Lebanon Government International Bond, 5.800%, due 4/14/20(b) | 1,400 | 145 | |||||||
325 | |||||||||
Macedonia—0.9% | |||||||||
North Macedonia Government International Bond, 1.625%, due 3/10/28 | EUR | 200 | 213 | ||||||
North Macedonia Government International Bond, 3.675%, due 6/3/26 | 200 | 240 | |||||||
453 |
Issuer | Principal Amount | Value | |||||||
Foreign Government Bonds—(continued) | |||||||||
Mexico—1.2% | |||||||||
Mexico Government International Bond, 6.050%, due 1/11/40 | $200 | $ | 249 | ||||||
Mexico Government International Bond, 3.750%, due 4/19/71 | 400 | 358 | |||||||
607 | |||||||||
Mongolia—0.4% | |||||||||
Mongolia Government International Bond—144A, 4.450%, due 7/7/31 | 200 | 189 | |||||||
Morocco—0.4% | |||||||||
Morocco Government International Bond, 4.000%, due 12/15/50 | 200 | 181 | |||||||
Nigeria—1.6% | |||||||||
Nigeria Government International Bond, 7.696%, due 2/23/38 | 200 | 184 | |||||||
Nigeria Government International Bond—144A, 6.125%, due 9/28/28 | 225 | 216 | |||||||
Nigeria Government International Bond—144A, 7.375%, due 9/28/33 | 250 | 238 | |||||||
Nigeria Government International Bond—144A, 8.250%, due 9/28/51 | 225 | 210 | |||||||
848 | |||||||||
Oman—1.6% | |||||||||
Oman Government International Bond, 6.000%, due 8/1/29 | 200 | 215 | |||||||
Oman Government International Bond, 6.750%, due 1/17/48 | 600 | 609 | |||||||
824 | |||||||||
Pakistan—1.7% | |||||||||
Pakistan Government International Bond, 8.250%, due 4/15/24 | 200 | 212 | |||||||
Pakistan Government International Bond, 8.875%, due 4/8/51 | 200 | 198 | |||||||
Pakistan Government International Bond, 6.000%, due 4/8/26 | 250 | 249 | |||||||
Pakistan Government International Bond—144A, 6.000%, due 4/8/26 | 200 | 200 | |||||||
859 | |||||||||
Panama—1.8% | |||||||||
Panama Government International Bond, 4.500%, due 5/15/47 | 450 | 496 | |||||||
Panama Government International Bond, 4.500%, due 4/1/56 | 400 | 441 | |||||||
937 | |||||||||
Paraguay—0.5% | |||||||||
Paraguay Government International Bond, 4.700%, due 3/27/27 | 250 | 277 | |||||||
Peru—1.0% | |||||||||
Peruvian Government International Bond, 3.230%, due 7/28/21 | 280 | 241 | |||||||
Peruvian Government International Bond, 3.000%, due 1/15/34 | 200 | 199 | |||||||
Peruvian Government International Bond, 3.600%, due 1/15/72 | 100 | 97 | |||||||
537 |
See accompanying Notes to Financial Statements.
December 31, 2021 | William Blair Funds | 97 |
Emerging Markets Debt Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Principal Amount | Value | |||||||
Foreign Government Bonds—(continued) | |||||||||
Philippines—1.5% | |||||||||
Philippine Government International Bond, 3.700%, due 2/2/42 | $ | 700 | $ | 763 | |||||
Qatar—1.9% | |||||||||
Qatar Government International Bond, 9.750%, due 6/15/30 | 200 | 313 | |||||||
Qatar Government International Bond, 4.400%, due 4/16/50 | 550 | 681 | |||||||
994 | |||||||||
Romania—1.9% | |||||||||
Romanian Government International Bond, 4.625%, due 4/3/49 | EUR | 650 | 839 | ||||||
Romanian Government International Bond, 3.500%, due 4/3/34 | 100 | 119 | |||||||
958 | |||||||||
Russia—1.4% | |||||||||
Russian Foreign Bond, 5.100%, due 3/28/35 | $ | 400 | 471 | ||||||
Russian Foreign Bond, 5.625%, due 4/4/42 | 200 | 259 | |||||||
730 | |||||||||
Saudi Arabia—2.2% | |||||||||
Saudi Government International Bond, 3.750%, due 1/21/55 | 200 | 214 | |||||||
Saudi Government International Bond, 2.250%, due 2/2/33 | 400 | 391 | |||||||
Saudi Government International Bond, 3.450%, due 2/2/61 | 500 | 504 | |||||||
1,109 | |||||||||
Serbia—0.8% | |||||||||
Serbia International Bond—144A, 1.000%, due 9/23/28 | EUR | 400 | 429 | ||||||
South Africa—0.7% | |||||||||
Republic of South Africa Government International Bond, 5.650%, due 9/27/47 | $ | 200 | 191 | ||||||
Republic of South Africa Government International Bond, 5.750%, due 9/30/49 | 200 | 192 | |||||||
383 | |||||||||
Sri Lanka—1.7% | |||||||||
Sri Lanka Government International Bond, 7.850%, due 3/14/29 | 1,000 | 502 | |||||||
Sri Lanka Government International Bond, 5.750%, due 1/18/22 | 250 | 223 | |||||||
Sri Lanka Government International Bond, 5.875%, due 7/25/22 | 200 | 134 | |||||||
859 | |||||||||
Tunisia—0.5% | |||||||||
Banque Centrale de Tunisie International Bond, 5.625%, due 2/17/24 | EUR | 300 | 265 | ||||||
Turkey—1.0% | |||||||||
Turkey Government International Bond, 4.875%, due 4/16/43 | $ | 450 | 345 | ||||||
Turkey Government International Bond, 5.750%, due 5/11/47 | 200 | 162 | |||||||
507 |
Issuer | Principal Amount | Value | |||||||
Foreign Government Bonds—(continued) | |||||||||
Ukraine—3.6% | |||||||||
Ukraine Government International Bond, 0.000%, due 5/31/40, VRN(a) | $450 | $ | 408 | ||||||
Ukraine Government International Bond, 7.750%, due 9/1/22 | 400 | 395 | |||||||
Ukraine Government International Bond, 7.253%, due 3/15/33 | 750 | 658 | |||||||
Ukraine Government International Bond, 9.750%, due 11/1/28 | 400 | 402 | |||||||
1,863 | |||||||||
Uruguay—1.3% | |||||||||
Uruguay Government International Bond, 4.975%, due 4/20/55 | 510 | 668 | |||||||
Zambia—0.9% | |||||||||
Zambia Government International Bond, 8.500%, due 4/14/24 | 400 | 314 | |||||||
Zambia Government International Bond, 8.970%, due 7/30/27 | 200 | 154 | |||||||
468 | |||||||||
Total Foreign Government Bonds—61.5% (cost $33,363) | 31,669 | ||||||||
Foreign Corporate Bonds—30.8% | |||||||||
Azerbaijan—0.9% | |||||||||
State Oil Co. of the Azerbaijan Republic, 6.950%, due 3/18/30 | 400 | 482 | |||||||
Brazil—1.3% | |||||||||
Atento Luxco 1 S.A., 8.000%, due 2/10/26 | 250 | 266 | |||||||
MV24 Capital BV, 6.748%, due 6/1/34 | 181 | 186 | |||||||
Petrorio Luxembourg S.a.r.l., 6.125%, due 6/9/26 | 200 | 199 | |||||||
651 | |||||||||
Chile—1.6% | |||||||||
Banco de Chile—144A, 2.990%, due 12/9/31 | 200 | 197 | |||||||
CAP S.A., 3.900%, due 4/27/31 | 250 | 235 | |||||||
Kenbourne Invest S.A., 4.700%, due 1/22/28 | 200 | 195 | |||||||
VTR Finance N.V., 6.375%, due 7/15/28 | 200 | 209 | |||||||
836 | |||||||||
China—3.1% | |||||||||
China Evergrande Group, 9.500%, due 3/29/24(b) | 300 | 45 | |||||||
CNAC HK Finbridge Co., Ltd., 4.875%, due 3/14/25 | 200 | 217 | |||||||
CNAC HK Finbridge Co., Ltd., 3.000%, due 9/22/30 | 200 | 202 | |||||||
Huarong Finance 2017 Co., Ltd., 5 year CMT + 6.983%, 4.000%, due 11/7/22, VRN(c) | 200 | 198 |
See accompanying Notes to Financial Statements.
98 | Annual Report | December 31, 2021 |
Emerging Markets Debt Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Principal Amount | Value | |||||||
Foreign Corporate Bonds—(continued) | |||||||||
China (continued) | |||||||||
Lee & Man Paper Manufacturing, Ltd., 5 year CMT + 8.280%, 5.500%, due 5/29/24, VRN(c) | $200 | $ | 201 | ||||||
Sinochem Offshore Capital Co., Ltd., 2.375%, due 9/23/31 | 300 | 290 | |||||||
Sinopec Group Overseas Development 2015, Ltd., 4.100%, due 4/28/45 | 200 | 225 | |||||||
West China Cement, Ltd., 4.950%, due 7/8/26 | 200 | 190 | |||||||
Yuzhou Group Holdings Co., Ltd., 7.850%, due 8/12/26 | 200 | 55 | |||||||
1,623 | |||||||||
Colombia—1.5% | |||||||||
Bancolombia S.A., 5 year CMT + 2.929%, 4.875%, due 10/18/27, VRN | 200 | 199 | |||||||
Canacol Energy Ltd.—144A, 5.750%, due 11/24/28 | 200 | 199 | |||||||
Gran Colombia Gold Corp.—144A, 6.875%, due 8/9/26 | 200 | 198 | |||||||
SierraCol Energy Andina LLC—144A, 6.000%, due 6/15/28 | 200 | 188 | |||||||
784 | |||||||||
Dominican Republic—0.5% | |||||||||
Empresa Generadora de Electricidad Haina S.A.—144A, 5.625%, due 11/8/28 | 250 | 251 | |||||||
Ghana—0.7% | |||||||||
Kosmos Energy Ltd.—144A, 7.750%, due 5/1/27 | 200 | 191 | |||||||
Tullow Oil plc, 7.000%, due 3/1/25 | 200 | 164 | |||||||
355 | |||||||||
Guatemala—1.2% | |||||||||
Banco Industrial S.A., 5 year CMT + 4.442%, 4.875%, due 1/29/31, VRN | 200 | 198 | |||||||
Energuate Trust, 5.875%, due 5/3/27 | 200 | 207 | |||||||
Investment Energy Resources Ltd.—144A, 6.250%, due 4/26/29 | 200 | 215 | |||||||
620 | |||||||||
India—1.5% | |||||||||
Continuum Energy Levante, 4.500%, due 2/9/27 | 199 | 203 | |||||||
Export-Import Bank of India, 2.250%, due 1/13/31 | 200 | 188 | |||||||
Periama Holdings LLC, 5.950%, due 4/19/26 | 200 | 212 | |||||||
Vedanta Resources Finance II plc, 9.250%, due 4/23/26 | 200 | 188 | |||||||
791 |
Issuer | Principal Amount | Value | |||||||
Foreign Corporate Bonds—(continued) | |||||||||
Indonesia—2.6% | |||||||||
Nickel Mines Ltd.—144A, 6.500%, due 4/1/24 | $200 | $ | 199 | ||||||
Perusahaan Penerbit SBSN Indonesia III, 2.800%, due 6/23/30 | 300 | 309 | |||||||
PT Bank Tabungan Negara Persero Tbk, 4.200%, due 1/23/25 | 200 | 204 | |||||||
PT Pertamina Persero, 2.300%, due 2/9/31 | 200 | 191 | |||||||
PT Pertamina Persero, 3.100%, due 8/27/30 | 200 | 204 | |||||||
PT Pertamina Persero, 6.000%, due 5/3/42 | 200 | 245 | |||||||
1,352 | |||||||||
Jamaica—0.4% | |||||||||
Sagicor Financial Co., Ltd.—144A, 5.300%, due 5/13/28 | 200 | 205 | |||||||
Kazakhstan—1.1% | |||||||||
KazMunayGas National Co. JSC, 5.750%, due 4/19/47 | 450 | 550 | |||||||
Malaysia—3.4% | |||||||||
1MDB Global Investments, Ltd., 4.400%, due 3/9/23 | 1,200 | 1,204 | |||||||
Dua Capital, Ltd., 2.780%, due 5/11/31 | 300 | 298 | |||||||
Petronas Capital, Ltd., 4.550%, due 4/21/50 | 200 | 248 | |||||||
1,750 | |||||||||
Mexico—3.3% | |||||||||
BBVA Bancomer S.A., 5 year CMT + 2.650%, 5.125%, due 1/18/33, VRN | 200 | 206 | |||||||
Credito Real S.A.B. de C.V. SOFOM ER, 5.000%, due 2/1/27 | EUR | 200 | 133 | ||||||
Petroleos Mexicanos, 7.690%, due 1/23/50 | $ | 500 | 480 | ||||||
Petroleos Mexicanos, 6.950%, due 1/28/60 | 500 | 441 | |||||||
Petroleos Mexicanos, 6.750%, due 9/21/47 | 238 | 210 | |||||||
Unifin Financiera S.A. DE Co., 8.375%, due 1/27/28 | 300 | 247 | |||||||
1,717 | |||||||||
Mongolia—0.4% | |||||||||
Development Bank of Mongolia, 7.250%, due 10/23/23 | 200 | 210 | |||||||
Nigeria—0.9% | |||||||||
Fidelity Bank plc—144A, 7.625%, due 10/28/26 | 200 | 196 | |||||||
SEPLAT Energy plc, 7.750%, due 4/1/26 | 250 | 249 | |||||||
445 | |||||||||
Peru—0.4% | |||||||||
Minsur S.A.—144A, 4.500%, due 10/28/31 | 200 | 203 |
See accompanying Notes to Financial Statements.
December 31, 2021 | William Blair Funds | 99 |
Emerging Markets Debt Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Principal Amount | Value | |||||||
Foreign Corporate Bonds—(continued) | |||||||||
Qatar—1.2% | |||||||||
Qatar Petroleum —144A, 2.250%, due 7/12/31 | $600 | $ | 593 | ||||||
Russia—0.5% | |||||||||
Credit Bank of Moscow Via CBOM Finance plc—144A, 5 year CMT + 6.561%, 7.625%, due 4/4/27, VRN(c) | 250 | 233 | |||||||
South Africa—0.4% | |||||||||
Liquid Telecommunications Financing plc, 5.500%, due 9/4/26 | 200 | 206 | |||||||
Supranational—0.4% | |||||||||
The African Export-Import Bank—144A, 3.798%, due 5/17/31 | 200 | 204 | |||||||
Trinidad—0.4% | |||||||||
Trinidad Generation UnLtd, 5.250%, due 11/4/27 | 200 | 204 | |||||||
Turkey—0.5% | |||||||||
Turkiye Ihracat Kredi Bankasi A.S.—144A, 5.750%, due 7/6/26 | 300 | 273 | |||||||
United Arab Emirates—1.8% | |||||||||
Abu Dhabi Government International Bond, 2.700%, due 9/2/70 | 450 | 408 | |||||||
Emirate of Dubai Government International Bonds, 3.900%, due 9/9/50 | 200 | 191 | |||||||
Sharjah Sukuk Program, Ltd., 3.234%, due 10/23/29 | 300 | 303 | |||||||
902 | |||||||||
Uzbekistan—0.8% | |||||||||
Ipoteka-Bank ATIB, 5.500%, due 11/19/25 | 200 | 203 | |||||||
Uzbekneftegaz JSC—144A, 4.750%, due 11/16/28 | 200 | 193 | |||||||
396 | |||||||||
Total Foreign Corporate Bonds—30.8% (cost $16,095) | 15,836 | ||||||||
Foreign Municipal Bonds—1.1% | |||||||||
Argentina—1.1% | |||||||||
Provincia de Buenos Aires, 3.900%, due 9/1/37, VRN(a) | 400 | 170 | |||||||
Provincia de Buenos Aires—144A, 3.900%, due 9/1/37, VRN(a) | 50 | 21 | |||||||
Provincia de Buenos Aires—144A, 3.500%, due 9/1/37, VRN(a) | 200 | 79 | |||||||
Provincia de Cordoba, 5.000%, due 6/1/27, VRN(a) | 150 | 94 | |||||||
Provincia de Entre Rios Argentina, 5.000%, due 8/8/28, VRN(a) | 150 | 104 | |||||||
Provincia de Neuquen Argentina, 4.625%, due 4/27/30, VRN(a) | 200 | 120 | |||||||
588 | |||||||||
Total Foreign Municipal Bonds—1.1% (cost $639) | 588 |
Issuer | Principal Amount | Value | |||||||
Repurchase Agreement | |||||||||
Fixed Income Clearing Corporation, 0.000% dated 12/31/21, due 1/3/22, repurchase price $2,483, collateralized by U.S. Treasury Bond, 1.875%, due 02/15/41, valued at $2,533 | $2,483 | $ | 2,483 | ||||||
Total Repurchase Agreement—4.8% (cost $2,483) | 2,483 | ||||||||
Total Investments in Securities—98.2% (cost $52,580) | 50,576 | ||||||||
Total Investments—98.2% (cost $52,580) | 50,576 | ||||||||
Cash and other assets, less liabilities—1.8% | 918 | ||||||||
Net assets—100.0% | $ | 51,494 |
(a) Variable/Floating interest rate security. Certain variable/floating interest rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description above. Rate presented is as of December 31, 2021.
(b) = Defaulted security.
(c) Security is perpetual in nature and has no stated maturity.
144A = Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
VRN = Variable Rate Note
At December 31, 2021, the Fund’s Portfolio of Investments includes the following industry categories (as a percentage of long-term investments):
Sovereign | 68.8 | % | ||
Corporate | ||||
Financials | 4.0 | % | ||
Energy | 3.7 | % | ||
Materials | 3.4 | % | ||
Communication Services | 1.3 | % | ||
Quasi-Sovereign | 1.3 | % | ||
Utilities | 0.9 | % | ||
Consumer Discretionary | 0.5 | % | ||
Quasi-Sovereign | 14.9 | % | ||
Sub Sovereign | 0.8 | % | ||
Supranational | 0.4 | % | ||
Total | 100.0 | % | ||
At December 31, 2021, the Fund’s Portfolio of Investments includes the following currency categories (as a percentage of long-term investments): | ||||
U.S. Dollar | 92.8 | % | ||
Euro | 7.2 | % | ||
Total | 100.0 | % |
See accompanying Notes to Financial Statements.
100 | Annual Report | December 31, 2021 |
Emerging Markets Debt Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Foreign Currency Contract
Settlement Date | Deliver/Receive | Counterparty | Local Currency (in thousands) | USD (Base) Purchased or Sold | Current Value | Net Unrealized Appreciation (Depreciation) | |||||||||||||
Sold | |||||||||||||||||||
3/16/22 | Euro | Citibank N.A. London | 3,145 | $3,560 | $3,586 | $ | (26) |
Centrally Cleared Interest Rate Swaps
Floating Rate Reference | Pay/Receive Floating Rate | Fixed Rate | Payment Frequency | Maturity Date | Cleared Exchange | Notional Amount (in thousands) | Upfront Payment Paid (Received) | Value | Unrealized Appreciation (Depreciation) | |||||||||||||||||
3 Month USD LIBOR | Receive | 1.774% | 6M | February 2071 | LCH | $477 | $(22 | ) | $(50 | ) | $ | (28 | ) | |||||||||||||
3 Month USD LIBOR | Receive | 0.750% | 6M | June 2036 | LCH | 1,720 | 186 | 211 | 25 | |||||||||||||||||
3 Month USD LIBOR | Receive | 1.250% | 6M | June 2051 | LCH | 644 | 77 | 73 | (4 | ) | ||||||||||||||||
6 Month EURIBOR | Receive | (0.250)% | 1Y | June 2026 | LCH | EUR 483 | (3 | ) | 6 | 9 | ||||||||||||||||
6 Month EURIBOR | Receive | (0.250)% | 1Y | June 2028 | LCH | EUR 675 | 10 | 18 | 8 | |||||||||||||||||
6 Month EURIBOR | Receive | 0.000% | 1Y | June 2031 | LCH | EUR 320 | (4 | ) | 10 | 14 | ||||||||||||||||
6 Month EURIBOR | Receive | 0.000% | 1Y | June 2036 | LCH | EUR 270 | 20 | 21 | 1 | |||||||||||||||||
6 Month EURIBOR | Receive | 0.250% | 1Y | June 2041 | LCH | EUR 670 | 16 | 41 | 25 | |||||||||||||||||
3 Month USD LIBOR | Receive | 0.500% | 6M | June 2026 | LCH | $651 | 12 | 23 | 11 | |||||||||||||||||
3 Month USD LIBOR | Pay | 0.500% | 6M | June 2028 | LCH | 1,742 | (96 | ) | (102 | ) | (6 | ) | ||||||||||||||
3 Month USD LIBOR | Pay | 1.000% | 6M | June 2041 | LCH | 2,952 | (389 | ) | (377 | ) | 12 | |||||||||||||||
$ | 67 | |||||||||||||||||||||||||
Centrally Cleared Credit Default Swaps | ||||||||||||||||||||||||||
Reference Entity | Buy/Sell Protection | Fixed Rate | Payment Frequency | Maturity Date | Cleared Exchange | Notional Amount (in thousands) | Upfront Payment Paid (Received) | Value | Unrealized Appreciation (Depreciation) | |||||||||||||||||
Russian Federation | Buy | 1.000% | 3M | June 2026 | ICE | $400 | $(1 | ) | $3 | $ | 4 | |||||||||||||||
Republic of South Africa | Buy | 1.000% | 3M | June 2026 | ICE | 600 | 27 | 22 | (5 | ) | ||||||||||||||||
Kingdom of Saudi Arabia | Buy | 1.000% | 3M | June 2026 | ICE | 400 | (8 | ) | (9 | ) | (1 | ) | ||||||||||||||
Republic of Colombia | Buy | 1.000% | 3M | December 2031 | ICE | 800 | 98 | 111 | 13 | |||||||||||||||||
$ | 11 | |||||||||||||||||||||||||
Total net unrealized appreciation (depreciation) on swaps | $ | 78 |
See accompanying Notes to Financial Statements.
December 31, 2021 | William Blair Funds | 101 |
102 | Annual Report | December 31, 2021 |
Macro Allocation Fund
and others have. Accordingly, there have, for example, been multiple central bank rate increases already across Latin America, Russia, and a first increase in South Africa. In some countries—Brazil and Chile included—the speed of rate tightening has increased in recent months. So far there is scant indication of consumer price inflation having peaked in these places, though we believe Brazil may be closest to this point. In addition, the rise in inflation has in most cases been faster than central banks have been raising rates, meaning that real interest rates (based on historic inflation) have in general fallen rather than increased. In this regard, even in the emerging world, there is some acknowledgement that the world is presently witnessing an unusually sharp price surge, influenced by the combined impact of supply constraints and demand rebound on energy, commodities, and goods that are a result of the emergence from the worst economic effects of 2020. Even in Latin America and Russia, there is apparently a belief that some of this effect will fall back out of consumer prices as supply and demand normalize, hence policy rates should rise but not fully match increases in respective countries’ consumer price indices. If this is correct, then real interest rates across much of the emerging world should rise as price increases moderate and nominal monetary policy rates stay high or rise higher, as is expected by market participants.
This prognosis is the rationale behind a significant part of our currency strategy in portfolios, where our largest long positions are in those currencies whose central banks are leading the way—and/or expected to do so—in respect of monetary tightening, and where the currencies themselves are also quite deeply fundamentally undervalued in our view. These currency opportunities (in Brazil, Russia, Chile, Colombia) have yet to be rewarded and accordingly remain wide (attractive). We further increased our exposure to the Chilean peso and the Brazilian real in the quarter. Political risk exists in both countries, with Chile having just had a presidential election and Brazil scheduled for one in 2022. Populist leaders in both countries present challenges to ESG-oriented institutional quality and the business climate, but, importantly, the monetary institutions—which are central to our valuation case—remain highly robust and independent of political interference. Hence, we have taken advantage of the potential opportunities presented by undervaluation and monetary tightening.
The high yield (real estate) market in China was rocked by a payment default on the bonds of one of the country’s largest property developers, Evergrande, which in turn was part of the fallout of the government’s efforts to reduce leverage and indebtedness in parts of its economy and financial system, and also to tighten regulations in other areas. Although China has a huge credit market, this episode has not introduced contagion outside of real estate, which is a significant part of the high yield market but a very small part of total corporate credit. We maintained a small long exposure to the broad China equity market during the fourth quarter. The exposure initially comprised small cap stocks only, which fared much better than large cap exposures that are more exposed to government regulation. We then sought to capitalize on this significant weakness by increasing our overall China exposure via large cap stocks. Overall, our equity exposure to China has been of benefit to the Fund in 2021. There remains a risk that, in their regulatory enthusiasm, the authorities may at some point trigger a more significant hit to growth expectations, and accordingly, influence a wider adverse market movement. But we have expected a slowdown in China’s growth rate for a long time and it remains reflected in our valuation assumptions for that equity market. Furthermore, from a global perspective, some slowdown in China acts as a counterweight to the economic rebounds seen in other parts of the world in the last year and more.
We retained a modest exposure to the Turkish lira during most of the year, which was a performance drag on the portfolio. While we believe the lira remains deeply undervalued, the exposure within the Fund was much smaller than the valuation picture would justify because of Turkey’s continued push for inappropriately easy monetary policy (in sharp contrast to the rest of the world) in the face of very high inflation. This push increasingly appeared to be aimed at fuelling an economic boom—via a weak currency and a current account surplus—to, in part, boost the popularity of its president. As this low rate/weak currency strategy became more aggressive, and with the independence of the central bank severely compromised, we exited the small lira exposure as it further depreciated. In the medium term, we expect the country’s monetary institutions to outlast President Erdogan, and that the substantial pessimism afflicting the currency at present, coupled with its very considerable fundamental attractiveness, may ultimately provide a renewed investment opportunity, but a full and appropriate exploitation of this may ultimately be dependent on President Erdogan’s exit from his current position of influence and power.
As indicated above, the exposures within the Fund are a combination of instruments, including exchange-traded funds, physical baskets of securities, and derivatives. The decision on what instrument to use is a function of liquidity, cost, precision, tax treatment, and transparency. Derivatives are used both to gain desired exposures and hedge away undesired exposures. The performance of the Fund will be predominantly dictated by the macro exposures themselves (such as long Brazil equity) as opposed to the instrument used to gain the exposure (exchange-traded fund or physical basket of securities vs. derivative).
December 31, 2021 | William Blair Funds | 103 |
Macro Allocation Fund
Performance Highlights (Unaudited)
Average Annual Total Returns through 12/31/2021 | ||||||||||||||||||||
1 Year | 3 Year | 5 Year | 10 Year | Since Inception(a) | ||||||||||||||||
Class N | 1.15 | % | 0.50 | % | 1.03 | % | 2.92 | % | — | % | ||||||||||
Class I | 1.41 | 0.75 | 1.31 | 3.19 | — | |||||||||||||||
Class R6 | 1.48 | 0.83 | 1.39 | — | 0.98 | |||||||||||||||
ICE BofAML US 3-Month Treasury Bill Index | 0.05 | 0.99 | 1.14 | 0.62 | 0.75 |
(a) | Since inception is for the period from October 21, 2013 (Commencement of Operations) to December 31, 2021. |
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are average annual total returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272, or visit our Web site at www.williamblairfunds.com. The Fund involves a high level of risk and may not be appropriate for everyone. You could lose money by investing in the Fund. There can be no assurance that the Fund’s investment objective will be achieved or that the Fund’s investment strategies will be successful. The Fund is not a complete investment program. From time to time, the investment adviser may waive fees or reimburse expenses for the Fund. Without these waivers/reimbursements, performance would be lower. Class N shares are not subject to a sales load. Class I shares are not subject to a sales load or distribution (Rule 12b-1) fees. Class R6 shares are not subject to a sales load, distribution (Rule 12b-1) fees, or sub-transfer agent fees.
The performance highlights and graph presented above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The ICE BofAML US 3-Month Treasury Bill Index measures total return on cash, including price and interest income, based on short-term government Treasury Bills of about 90-day maturity. The Index is unmanaged, does not incur fees or expenses, and cannot be invested in directly.
This report identifies the Fund’s investments on December 31, 2021. These holdings are subject to change. Not all investments in the Fund performed the same, nor is there any guarantee that these investments will perform as well in the future. Market forecasts provided in this report may not necessarily come to pass.
Portfolio Allocation (Unaudited)
The table below provides the allocation of the Fund’s holdings as a percent of net assets as of December 31, 2021.
Category | % of net assets | |||
Equity Exchange-Traded Funds | 68.0 | |||
Fixed Income Exchange-Traded Funds | 4.1 | |||
Common Stocks | 3.6 | |||
Foreign Government Bonds | 12.6 | |||
Preferred Stocks | 0.2 | |||
Repurchase Agreement | 1.8 | |||
U.S. Government | 7.4 | |||
Cash and other assets, less liabilities | 2.3 | |||
Total | 100.0% |
104 | Annual Report | December 31, 2021 |
Macro Allocation Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Exchange-Traded Funds—72.1% | |||||||||
Equity Exchange-Traded Funds—68.0% | |||||||||
Financial Select Sector SPDR Fund | 48,600 | $ | 1,898 | ||||||
iShares Core S&P 500 ETF | 78,400 | 37,396 | |||||||
iShares MSCI Brazil ETF | 137,900 | 3,871 | |||||||
iShares MSCI India ETF | 14,900 | 683 | |||||||
SPDR S&P 500 ETF Trust | 89,800 | 42,652 | |||||||
Utilities Select Sector SPDR Fund | 7,200 | 515 | |||||||
Vanguard S&P 500 ETF | 85,700 | 37,414 | |||||||
Vietnam Enterprise Investments, Ltd. Class “C” | 380,599 | 3,941 | |||||||
Total Equity Exchange-Traded Funds | 128,370 | ||||||||
Fixed Income Exchange-Traded Funds—4.1% | |||||||||
iShares iBoxx $ Investment Grade Corporate Bond ETF | 43,400 | 5,751 | |||||||
SPDR Bloomberg Barclays High Yield Bond ETF | 19,100 | 2,074 | |||||||
Total Fixed Income Exchange-Traded Funds | 7,825 | ||||||||
Total Exchange-Traded Funds—72.1% (cost $113,488) | 136,195 | ||||||||
Common Stocks—3.6% | |||||||||
Emerging Asia—2.8% | |||||||||
Philippines—2.8% | |||||||||
Ayala Corporation (Industrial conglomerates) | 30,135 | 491 | |||||||
Ayala Land, Inc. (Real estate management & development) | 829,572 | 597 | |||||||
Bank of the Philippine Islands (Banks) | 191,378 | 346 | |||||||
BDO Unibank, Inc. (Banks) | 207,177 | 491 | |||||||
Globe Telecom, Inc. (Wireless telecommunication services) | 2,838 | 185 | |||||||
GT Capital Holdings, Inc. (Industrial conglomerates) | 10,669 | 113 | |||||||
International Container Terminal Services, Inc. (Transportation infrastructure) | 107,001 | 420 | |||||||
JG Summit Holdings, Inc. (Industrial conglomerates) | 309,655 | 322 | |||||||
Jollibee Foods Corporation (Hotels, restaurants & leisure) | 47,736 | 203 | |||||||
Manila Electric Co. (Electric utilities) | 24,563 | 142 | |||||||
Metro Pacific Investments Corporation (Diversified financial services) | 1,306,184 | 100 | |||||||
Metropolitan Bank & Trust Co. (Banks) | 190,547 | 208 | |||||||
PLDT, Inc. (Wireless telecommunication services) | 8,113 | 288 | |||||||
SM Investments Corporation (Industrial conglomerates) | 25,320 | 468 | |||||||
SM Prime Holdings, Inc. (Real estate management & development) | 1,065,550 | 708 | |||||||
Universal Robina Corporation (Food products) | 94,844 | 238 | |||||||
5,320 |
Shares or | |||||||||
Principal | |||||||||
Issuer | Amount | Value | |||||||
Common Stocks (continued) | |||||||||
Emerging Latin America—0.8% | |||||||||
Chile—0.8% | |||||||||
Banco de Chile (Banks) | 2,728,516 | $ | 213 | ||||||
Banco de Credito e Inversiones S.A. (Banks) | 3,053 | 89 | |||||||
Banco Santander Chile (Banks) | 3,942,983 | 159 | |||||||
Cencosud S.A. (Food & staples retailing) | 90,355 | 151 | |||||||
Cencosud Shopping S.A. (Real estate management & development) | 29,528 | 35 | |||||||
Cia Cervecerias Unidas S.A. (Beverages) | 9,497 | 77 | |||||||
Colbun S.A. (Independent power & renewable electricity producers) | 482,425 | 39 | |||||||
Empresas CMPC S.A. (Paper & forest products) | 64,728 | 109 | |||||||
Empresas COPEC S.A. (Oil, gas &consumable fuels) | 23,030 | 178 | |||||||
Enel Americas S.A. (Electric utilities) | 1,278,509 | 140 | |||||||
Enel Chile S.A. (Electric utilities) | 1,687,130 | 59 | |||||||
Falabella S.A. (Multiline retail) | 45,490 | 148 | |||||||
1,397 | |||||||||
Total Common Stocks—3.6% (cost $6,836) | 6,717 | ||||||||
Foreign Government Bonds—12.6% | |||||||||
Brazil—3.8% | |||||||||
Brazil Notas do Tesouro Nacional Serie F, 10.000%, due 1/1/25 | BRL | 40,820 | 7,209 | ||||||
7,209 | |||||||||
Malaysia—6.1% | |||||||||
Malaysia Government Bond, 3.480%, due 3/15/23 | MYR | 47,080 | 11,461 | ||||||
South Africa—2.7% | |||||||||
Republic of South Africa Government Bond, 7.000%, due 2/28/31 | ZAR | 96,173 | 5,085 | ||||||
5,085 | |||||||||
Total Foreign Government Bonds—12.6% (cost $25,147) | 23,755 | ||||||||
Preferred Stock—0.2% | |||||||||
Emerging Latin America—0.2% | |||||||||
Chile—0.2% | |||||||||
Sociedad Quimica y Minera de Chile S.A. Class “B” (Chemicals) | 8,310 | 424 | |||||||
Total Preferred Stock—0.2% (cost $418) | 424 | ||||||||
Repurchase Agreement—1.8% | |||||||||
Fixed Income Clearing Corporation, 0.000% dated 12/31/21, due 1/3/22, repurchase price $3,472, collateralized by U.S. Treasury Bond, 1.875%, due 2/15/41, valued at $3,542 | $ | 3,472 | 3,472 | ||||||
Total Repurchase Agreement—1.8% (cost $3,472) | 3,472 |
See accompanying Notes to Financial Statements.
December 31, 2021 | William Blair Funds | 105 |
Macro Allocation Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Issuer | Principal Amount | Value | |||||||
U.S. Government—7.4% | |||||||||
U.S. Treasury Bill, 0.057%, due 4/21/22(a) | 1,500 | $ | 1,500 | ||||||
U.S. Treasury Bill, 0.043%, due 5/19/22(a) | 1,500 | 1,499 | |||||||
U.S. Treasury Bill, 0.066%, due 6/16/22(a) | 1,500 | 1,499 | |||||||
U.S. Treasury Bill, 0.073%, due 7/14/22(a) | 1,500 | 1,499 | |||||||
U.S. Treasury Bill, 0.069%, due 8/11/22(a)(b) | 1,500 | 1,498 | |||||||
U.S. Treasury Bill, 0.073%, due 9/8/22(a) | 1,500 | 1,498 | |||||||
U.S. Treasury Bill, 0.089%, due 10/6/22(a)(b) | 1,500 | 1,497 | |||||||
U.S. Treasury Bill, 0.165%, due 11/3/22(a)(b) | 1,500 | 1,497 | |||||||
U.S. Treasury Bill, 0.255%, due 12/1/22(a) | 1,500 | 1,496 | |||||||
U.S. Treasury Bill, 0.384%, due 12/29/22(a) | 500 | 498 | |||||||
Total U.S. Government—7.4% (cost $13,988) | 13,981 | ||||||||
Total Investments in Securities—97.7% (cost $163,349) | 184,544 | ||||||||
Cash and other assets, less liabilities—2.3% | 4,252 | ||||||||
Net assets—100.0% | $ | 188,796 |
(a) Security, or portion of security, is segregated as collateral for centrally cleared swaps and to cover initial margin requirements on open futures contracts aggregating a total value of $11,712 (in thousands).
(b) Security, or portion of security, is pledged as collateral for OTC swap contracts aggregating a total value of $961 (in thousands).
See accompanying Notes to Financial Statements.
106 | Annual Report | December 31, 2021 |
Macro Allocation Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Forward Foreign Currency Contracts
Settlement Date | Deliver/Receive | Counterparty | Local Currency (in thousands) | USD (Base) Purchased or Sold | Current Value | Net Unrealized Appreciation (Depreciation) | |||||||||||||
Purchased | |||||||||||||||||||
1/19/22 | Brazilian Real | Citibank N.A. London | 86,201 | $ | 15,400 | $ | 15,424 | $ | 24 | ||||||||||
1/19/22 | Chilean Peso | Citibank N.A. London | 10,638,984 | 12,505 | 12,462 | (43 | ) | ||||||||||||
1/19/22 | Chinese Yuan Renminbi | Citibank N.A. London | 2,682 | 421 | 422 | 1 | |||||||||||||
1/19/22 | Colombian Peso | Citibank N.A. London | 64,972,338 | 16,563 | 15,951 | (612 | ) | ||||||||||||
1/19/22 | Czech Koruna | Citibank N.A. London | 9,407 | 428 | 430 | 2 | |||||||||||||
1/19/22 | Hong Kong Dollar | Citibank N.A. London | 3,352 | 430 | 430 | — | |||||||||||||
1/19/22 | Indian Rupee | Citibank N.A. London | 230,675 | 3,046 | 3,091 | 45 | |||||||||||||
1/19/22 | Indonesian Rupiah | Citibank N.A. London | 37,392,466 | 2,626 | 2,626 | — | |||||||||||||
1/19/22 | Israeli Shekel | Citibank N.A. London | 2,102 | 676 | 676 | — | |||||||||||||
1/19/22 | Mexican Peso | Citibank N.A. London | 200,761 | 9,525 | 9,781 | 256 | |||||||||||||
1/19/22 | New Turkish Lira | Citibank N.A. London | 103,805 | 7,395 | 7,744 | 349 | |||||||||||||
1/19/22 | Philippine Peso | Citibank N.A. London | 244,837 | 4,864 | 4,768 | (96 | ) | ||||||||||||
1/19/22 | Russian Ruble | Citibank N.A. London | 1,518,598 | 20,421 | 20,211 | (210 | ) | ||||||||||||
1/19/22 | Singapore Dollar | Citibank N.A. London | 33,693 | 24,702 | 25,000 | 298 | |||||||||||||
1/19/22 | South Korean Won | Citibank N.A. London | 1,902,630 | 1,617 | 1,599 | (18 | ) | ||||||||||||
1/19/22 | Taiwan Dollar | Citibank N.A. London | 129,563 | 4,691 | 4,679 | (12 | ) | ||||||||||||
1/19/22 | Thai Baht | Citibank N.A. London | 8,478 | 255 | 254 | (1 | ) | ||||||||||||
3/16/22 | Australian Dollar | Citibank N.A. London | 801 | 581 | 583 | 2 | |||||||||||||
3/16/22 | Canadian Dollar | Citibank N.A. London | 263 | 206 | 207 | 1 | |||||||||||||
3/16/22 | Euro | Citibank N.A. London | 503 | 570 | 573 | 3 | |||||||||||||
3/16/22 | Japanese Yen | Citibank N.A. London | 1,793,048 | 15,823 | 15,597 | (226 | ) | ||||||||||||
3/16/22 | New Zealand Dollar | Citibank N.A. London | 1,422 | 971 | 973 | 2 | |||||||||||||
3/16/22 | Norwegian Krone | Citibank N.A. London | 52,333 | 5,805 | 5,935 | 130 | |||||||||||||
3/16/22 | Swedish Krona | Citibank N.A. London | 43,264 | 4,780 | 4,791 | 11 | |||||||||||||
3/16/22 | Swiss Franc | Citibank N.A. London | 433 | 474 | 476 | 2 | |||||||||||||
$ | (92 | ) | |||||||||||||||||
Sold | �� | ||||||||||||||||||
1/19/22 | Brazilian Real | Citibank N.A. London | 2,208 | 395 | 395 | — | |||||||||||||
1/19/22 | Chilean Peso | Citibank N.A. London | 273,569 | 322 | 320 | 2 | |||||||||||||
1/19/22 | Chinese Yuan Renminbi | Citibank N.A. London | 40,175 | 6,315 | 6,314 | 1 | |||||||||||||
1/19/22 | Colombian Peso | Citibank N.A. London | 2,083,509 | 520 | 512 | 8 | |||||||||||||
1/19/22 | Czech Koruna | Citibank N.A. London | 221,085 | 9,809 | 10,105 | (296 | ) | ||||||||||||
1/19/22 | Hong Kong Dollar | Citibank N.A. London | 76,812 | 9,853 | 9,851 | 2 | |||||||||||||
1/19/22 | Indian Rupee | Citibank N.A. London | 16,654 | 223 | 223 | — | |||||||||||||
1/19/22 | Indonesian Rupiah | Citibank N.A. London | 197,170,976 | 13,689 | 13,851 | (162 | ) | ||||||||||||
1/19/22 | Israeli Shekel | Citibank N.A. London | 54,420 | 17,550 | 17,505 | 45 | |||||||||||||
1/19/22 | Mexican Peso | Citibank N.A. London | 7,895 | 385 | 385 | — | |||||||||||||
1/19/22 | New Turkish Lira | Citibank N.A. London | 103,805 | 7,219 | 7,744 | (525 | ) | ||||||||||||
1/19/22 | Philippine Peso | Citibank N.A. London | 14,748 | 288 | 287 | 1 | |||||||||||||
1/19/22 | Russian Ruble | Citibank N.A. London | 48,748 | 652 | 649 | 3 | |||||||||||||
1/19/22 | Singapore Dollar | Citibank N.A. London | 1,475 | 1,090 | 1,094 | (4 | ) | ||||||||||||
1/19/22 | South African Rand | Citibank N.A. London | 22,651 | 1,434 | 1,418 | 16 | |||||||||||||
1/19/22 | South Korean Won | Citibank N.A. London | 237,698 | 199 | 200 | (1 | ) | ||||||||||||
1/19/22 | Thai Baht | Citibank N.A. London | 200,128 | 5,971 | 5,990 | (19 | ) | ||||||||||||
3/16/22 | Australian Dollar | Citibank N.A. London | 19,144 | 13,699 | 13,931 | (232 | ) | ||||||||||||
3/16/22 | British Pound Sterling | Citibank N.A. London | 631 | 834 | 854 | (20 | ) | ||||||||||||
3/16/22 | Canadian Dollar | Citibank N.A. London | 26,178 | 20,626 | 20,692 | (66 | ) | ||||||||||||
3/16/22 | Euro | Citibank N.A. London | 11,563 | 13,090 | 13,184 | (94 | ) | ||||||||||||
3/16/22 | Japanese Yen | Citibank N.A. London | 56,101 | 488 | 488 | — | |||||||||||||
3/16/22 | New Zealand Dollar | Citibank N.A. London | 44,211 | 29,978 | 30,247 | (269 | ) | ||||||||||||
3/16/22 | Swedish Krona | Citibank N.A. London | 3,403 | 376 | 377 | (1 | ) | ||||||||||||
3/16/22 | Swiss Franc | Citibank N.A. London | 10,091 | 10,941 | 11,095 | (154 | ) | ||||||||||||
$ | (1,765 | ) | |||||||||||||||||
Total net unrealized appreciation (depreciation) on forward foreign currency contracts | $ | (1,857 | ) |
See accompanying Notes to Financial Statements.
December 31, 2021 | William Blair Funds | 107 |
Macro Allocation Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Futures Contracts
Number of Contracts | Description | Expiration Date | Local Currency | Notional Value (Local, in Thousands) | Notional Amount (USD) | Notional Value (USD) | Net Unrealized Appreciation (Depreciation) | |||||||||||||||
Long | ||||||||||||||||||||||
32 | CAC 40 Index | January 2022 | Euro | 2,286 | $ | 2,527 | $ | 2,602 | $ | 75 | ||||||||||||
39 | IBEX 35 Index | January 2022 | Euro | 3,387 | 3,667 | 3,856 | 189 | |||||||||||||||
64 | OMXS 30 Index | January 2022 | Swedish Krona | 15,483 | 1,640 | 1,714 | 74 | |||||||||||||||
13 | FTSE Taiwan Index | January 2022 | U.S. Dollar | 834 | 823 | 834 | 11 | |||||||||||||||
229 | MSCI Singapore ETS Index | January 2022 | Singapore Dollar | 7,789 | 5,722 | 5,780 | 58 | |||||||||||||||
211 | FTSE KLCI Index | January 2022 | Malaysian Ringgit | 16,442 | 3,896 | 3,947 | 51 | |||||||||||||||
12 | KOSPI 200 Index | March 2022 | South Korean Won | 1,182,750 | 981 | 995 | 14 | |||||||||||||||
44 | SPI 200 Index | March 2022 | Australian Dollar | 8,082 | 5,823 | 5,880 | 57 | |||||||||||||||
5 | DAX Index | March 2022 | Euro | 1,982 | 2,240 | 2,257 | 17 | |||||||||||||||
71 | E-Mini Russell 1000 Index | March 2022 | U.S. Dollar | 5,859 | 5,686 | 5,859 | 173 | |||||||||||||||
141 | FTSE 100 Index | March 2022 | British Pound Sterling | 10,327 | 13,687 | 13,978 | 291 | |||||||||||||||
12 | FTSE MIB Index | March 2022 | Euro | 1,635 | 1,813 | 1,861 | 48 | |||||||||||||||
115 | MSCI China Index | March 2022 | U.S. Dollar | 5,338 | 5,452 | 5,338 | (114 | ) | ||||||||||||||
106 | MSCI Indonesia Index | March 2022 | U.S. Dollar | 1,739 | 1,729 | 1,739 | 10 | |||||||||||||||
191 | MSCI World Energy Index | March 2022 | U.S. Dollar | 5,862 | 5,789 | 5,862 | 73 | |||||||||||||||
5 | SWISS Markets Index | March 2022 | Swiss Franc | 640 | 682 | 702 | 20 | |||||||||||||||
89 | U.S. 5 Year Treasury Note | March 2022 | U.S. Dollar | 10,767 | 10,722 | 10,767 | 45 | |||||||||||||||
$ | 1,092 | |||||||||||||||||||||
Short | ||||||||||||||||||||||
3 | Amsterdam Index | January 2022 | Euro | 479 | $ | 540 | $ | 545 | $ | (5 | ) | |||||||||||
63 | Euro-Bobl | March 2022 | Euro | 8,394 | 9,623 | 9,557 | 66 | |||||||||||||||
4 | Euro-Bund | March 2022 | Euro | 685 | 794 | 781 | 13 | |||||||||||||||
31 | Euro-Buxl 30YR Bond | March 2022 | Euro | 6,409 | 7,650 | 7,297 | 353 | |||||||||||||||
7 | NIKKEI 225 | March 2022 | Japanese Yen | 100,660 | 870 | 875 | (5 | ) | ||||||||||||||
27 | FTSE/JSE Top 40 Index | March 2022 | South African Rand | 18,088 | 1,116 | 1,135 | (19 | ) | ||||||||||||||
37 | E-Mini Russell 1000 Index | March 2022 | U.S. Dollar | 5,689 | 5,532 | 5,689 | (157 | ) | ||||||||||||||
288 | EURO STOXX 50 Index | March 2022 | Euro | 12,348 | 13,682 | 14,058 | (376 | ) | ||||||||||||||
76 | MSCI Emerging Markets Index | March 2022 | U.S. Dollar | 4,660 | 4,698 | 4,660 | 38 | |||||||||||||||
4 | MSCI Hong Kong Index | March 2022 | U.S. Dollar | 279 | 280 | 279 | 1 | |||||||||||||||
164 | MSCI Mexico Index | March 2022 | U.S. Dollar | 4,677 | 4,347 | 4,677 | (330 | ) | ||||||||||||||
23 | NASDAQ 100 E-Mini Index | March 2022 | U.S. Dollar | 7,508 | 7,512 | 7,508 | 4 | |||||||||||||||
415 | S&P 500 E Mini Index | March 2022 | U.S. Dollar | 98,739 | 96,686 | 98,739 | (2,053 | ) | ||||||||||||||
9 | S&P E-Mini Com Ser Index | March 2022 | U.S. Dollar | 914 | 901 | 914 | (13 | ) | ||||||||||||||
5 | XAK Technology | March 2022 | U.S. Dollar | 875 | 862 | 875 | (13 | ) | ||||||||||||||
9 | XAY Consumer Discretionary | March 2022 | U.S. Dollar | 1,858 | 1,848 | 1,858 | (10 | ) | ||||||||||||||
27 | 10YR Canada Bond | March 2022 | Canadian Dollar | 3,851 | 2,966 | 3,044 | (78 | ) | ||||||||||||||
68 | U.S. 10 Year Treasury Note | March 2022 | U.S. Dollar | 8,872 | $ | 8,772 | 8,872 | (100 | ) | |||||||||||||
$ | (2,684 | ) | ||||||||||||||||||||
Total net unrealized appreciation (depreciation) on futures contracts | $ | (1,592 | ) |
See accompanying Notes to Financial Statements.
108 | Annual Report | December 31, 2021 |
Macro Allocation Fund
Portfolio of Investments, December 31, 2021 (all dollar amounts in thousands)
Centrally Cleared Interest Rate Swap
Floating Rate Reference | Pay/Receive Floating Rate | Fixed Rate | Payment Frequency | Maturity Date | Cleared Exchange | Notional Amount (in thousands) | Upfront Payment Paid (Received) | Value | Unrealized Appreciation (Depreciation) | |||||||||||||
Brazil CDI ON Deposit Rate | Pay | 9.985% | Maturity | January 2025 | CME | BRL 43,258 | $—(a) | $(51) | $ | (51 | ) |
Total Return Swaps
Reference Entity | Pay/Receive Floating/Fixed Rate | Floating/ Fixed Rate | Maturity Dates | Counterparty | Notional Amount (in thousands) | Market Value | Unrealized Appreciation (Depreciation) | |||||||||||
CSI 500 Net Total Return Index
| Pay
| (1,140) bp
| Sep 2022
| Credit Suisse International | $1,921 | $88 | $ | 88 | ||||||||||
MSCI Philippines Index Future
| Pay
| 0 bp
| Mar 2022
| Goldman Sachs International | 197 | 1 | 1 | |||||||||||
RTS Index Future
| Pay
| 0 bp
| Mar 2022
| Credit Suisse International | 2,169 | 88 | 88 | |||||||||||
$ | 177 |
Centrally Cleared Credit Default Swaps
Reference Entity | Buy/Sell Protection | Fixed Rate | Payment Frequency | Maturity Date | Cleared Exchange | Notional Amount (in thousands) | Upfront Payment Paid (Received) | Value | Unrealized Appreciation (Depreciation) | |||||||||||||
ITRAXX-EUROPE S36V1-5Y | Sell | 1.000% | 3M | December 2026 | ICE | EUR 3,506 | $105 | $105 | $ | — | ||||||||||||
Total net unrealized appreciation (depreciation) on swaps | $ | 126 |
(a) Amount is less than the minimum amount disclosed.
See accompanying Notes to Financial Statements.
December 31, 2021 | William Blair Funds | 109 |
Statements of Assets and Liabilities
As of December 31, 2021 (dollar amounts in thousands)
Growth Fund | Large Cap Growth Fund | Mid Cap Growth Fund | Small-Mid Cap Core Fund | |||||||||||||
Assets | ||||||||||||||||
Investments in securities, at cost | $ | 174,368 | $ | 722,003 | $ | 38,704 | $ | 79,088 | ||||||||
Investments in securities, at value | $ | 341,944 | $ | 1,108,240 | $ | 52,922 | $ | 92,902 | ||||||||
Receivable for securities sold | 4,003 | — | — | — | ||||||||||||
Receivable for fund shares sold | 101 | 3,493 | 26 | 57 | ||||||||||||
Receivable from Adviser | — | 101 | 22 | 15 | ||||||||||||
Dividend and interest receivable | 23 | 106 | 3 | 30 | ||||||||||||
Total assets | 346,071 | 1,111,940 | 52,973 | 93,004 | ||||||||||||
Liabilities | ||||||||||||||||
Payable for securities purchased | — | 4,828 | — | 34 | ||||||||||||
Payable for fund shares redeemed | 41 | 327 | 8 | 47 | ||||||||||||
Management fee payable | 220 | 548 | 39 | 68 | ||||||||||||
Distribution fee payable | 8 | 41 | 1 | — | ||||||||||||
Other payables and accrued expenses | 102 | 176 | 75 | 75 | ||||||||||||
Total liabilities | 371 | 5,920 | 123 | 224 | ||||||||||||
Net assets | $ | 345,700 | $ | 1,106,020 | $ | 52,850 | $ | 92,780 | ||||||||
Capital | ||||||||||||||||
Composition of net assets | ||||||||||||||||
Paid in capital | $ | 171,727 | $ | 714,283 | $ | 26,391 | $ | 85,874 | ||||||||
Total distributable earnings (loss) | 173,973 | 391,737 | 26,459 | 6,906 | ||||||||||||
Net assets | $ | 345,700 | $ | 1,106,020 | $ | 52,850 | $ | 92,780 | ||||||||
Class N shares | ||||||||||||||||
Net assets | $ | 36,807 | $ | 203,014 | $ | 5,480 | — | |||||||||
Shares outstanding | 3,115,619 | 8,291,254 | 412,173 | — | ||||||||||||
Net asset value per share | $ | 11.81 | $ | 24.49 | $ | 13.29 | — | |||||||||
Class I shares | ||||||||||||||||
Net assets | $ | 293,900 | $ | 669,060 | $ | 46,694 | $ | 61,433 | ||||||||
Shares outstanding | 19,716,658 | 25,560,484 | 3,182,135 | 3,767,058 | ||||||||||||
Net asset value per share | $ | 14.91 | $ | 26.18 | $ | 14.67 | $ | 16.31 | ||||||||
Class R6 shares | ||||||||||||||||
Net assets | $ | 14,993 | $ | 233,946 | $ | 676 | $ | 31,347 | ||||||||
Shares outstanding | 1,002,620 | 8,944,511 | 46,007 | 1,920,994 | ||||||||||||
Net asset value per share | $ | 14.95 | $ | 26.16 | $ | 14.69 | $ | 16.32 |
See accompanying Notes to Financial Statements.
110 | Annual Report | December 31, 2021 |
Statements of Operations
For the Year Ended December 31, 2021 (all amounts in thousands)
Growth Fund | Large Cap Growth Fund | Mid Cap Growth Fund | Small-Mid Cap Core Fund | |||||||||||||
Investment income | ||||||||||||||||
Dividends | $ | 1,776 | $ | 4,936 | $ | 276 | $ | 461 | ||||||||
Less foreign tax withheld | (2 | ) | — | — | (3 | ) | ||||||||||
Total income | 1,774 | 4,936 | 276 | 458 | ||||||||||||
Expenses | ||||||||||||||||
Investment advisory fees | 2,449 | 5,062 | 741 | 526 | ||||||||||||
Distribution fees | 89 | 414 | 14 | — | ||||||||||||
Custodian fees | 51 | 56 | 56 | 74 | ||||||||||||
Transfer agent fees | 73 | 183 | 14 | 1 | ||||||||||||
Sub-transfer agent fees | ||||||||||||||||
Class N | 45 | 223 | 7 | — | ||||||||||||
Class I | 161 | 400 | 99 | 36 | ||||||||||||
Professional fees | 49 | 84 | 33 | 31 | ||||||||||||
Registration fees | 44 | 78 | 53 | 32 | ||||||||||||
Shareholder reporting fees | 17 | 46 | 4 | 2 | ||||||||||||
Trustee fees | 21 | 49 | 6 | 2 | ||||||||||||
Other expenses | 23 | 52 | 12 | 8 | ||||||||||||
Total expenses before expense limitation | 3,022 | 6,647 | 1,039 | 712 | ||||||||||||
Expenses waived or reimbursed by the Adviser | ||||||||||||||||
Class N | (5 | ) | (248 | ) | (16 | ) | — | |||||||||
Class I | — | (472 | ) | (223 | ) | (117 | ) | |||||||||
Class R6 | — | (128 | ) | (1 | ) | (49 | ) | |||||||||
Total expenses waived or reimbursed by the Adviser | (5 | ) | (848 | ) | (240 | ) | (166 | ) | ||||||||
Net expenses | 3,017 | 5,799 | 799 | 546 | ||||||||||||
Net investment income (loss) | (1,243 | ) | (863 | ) | (523 | ) | (88 | ) | ||||||||
Realized and unrealized gain (loss) | ||||||||||||||||
Net realized gain (loss) on transactions from: | ||||||||||||||||
Investments in securities | 38,774 | 54,657 | 22,029 | 6,597 | ||||||||||||
Total net realized gain (loss) | 38,774 | 54,657 | 22,029 | 6,597 | ||||||||||||
Change in net unrealized appreciation (depreciation) of: | ||||||||||||||||
Investments in securities | 27,119 | 154,591 | (13,963 | ) | 6,181 | |||||||||||
Change in net unrealized appreciation (depreciation) | 27,119 | 154,591 | (13,963 | ) | 6,181 | |||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 64,650 | $ | 208,385 | $ | 7,543 | $ | 12,690 |
See accompanying Notes to Financial Statements.
December 31, 2021 | William Blair Funds | 111 |
Statements of Changes in Net Assets
For the Years Ended December 31, 2021 and 2020 (all amounts in thousands)
Growth Fund | Large Cap Growth Fund | Mid Cap Growth Fund | Small-Mid Cap Core Fund | |||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Operations | ||||||||||||||||||||||||||||||||
Net investment income (loss) | $ | (1,243 | ) | $ | (660 | ) | $ | (863 | ) | $ | 1,218 | $ | (523 | ) | $ | (342 | ) | $ | (88 | ) | $ | 6 | ||||||||||
Net realized gain (loss) on investments, and other assets and liabilities | 38,774 | 42,176 | 54,657 | 34,530 | 22,029 | 6,414 | 6,597 | (13,678 | ) | |||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments, and other assets and liabilities | 27,119 | 40,608 | 154,591 | 144,802 | (13,963 | ) | 12,060 | 6,181 | 7,247 | |||||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 64,650 | 82,124 | 208,385 | 180,550 | 7,543 | 18,132 | 12,690 | (6,425 | ) | |||||||||||||||||||||||
Distributions to shareholders | ||||||||||||||||||||||||||||||||
Class N | (4,767 | ) | (4,769 | ) | (8,639 | ) | (5,187 | ) | (243 | ) | (466 | ) | — | — | ||||||||||||||||||
Class I | (31,377 | ) | (27,747 | ) | (27,171 | ) | (14,681 | ) | (1,877 | ) | (5,249 | ) | — | — | ||||||||||||||||||
Class R6 | (1,576 | ) | (1,332 | ) | (9,649 | ) | (6,012 | ) | (27 | ) | (42 | ) | — | — | ||||||||||||||||||
Total distributions | (37,720 | ) | (33,848 | ) | (45,459 | ) | (25,880 | ) | (2,147 | ) | (5,757 | ) | — | — | ||||||||||||||||||
Capital stock transactions | ||||||||||||||||||||||||||||||||
Proceeds from sale of shares | 24,728 | 28,188 | 419,690 | 494,318 | 8,991 | 11,489 | 56,055 | 266,207 | ||||||||||||||||||||||||
Shares issued in reinvestment of income dividends and capital gain distributions | 36,511 | 32,736 | 43,442 | 22,621 | 2,127 | 5,537 | — | — | ||||||||||||||||||||||||
Less cost of shares redeemed | (39,720 | ) | (65,536 | ) | (232,907 | ) | (262,574 | ) | (47,634 | ) | (18,977) | (6,010 | ) | (236,325 | ) | |||||||||||||||||
Net increase (decrease) in net assets resulting from capital share transactions | 21,519 | (4,612 | ) | 230,225 | 254,365 | (36,516 | ) | (1,951 | ) | 50,045 | 29,882 | |||||||||||||||||||||
Increase (decrease) in net assets | 48,449 | 43,664 | 393,151 | 409,035 | (31,120 | ) | 10,424 | 62,735 | 23,457 | |||||||||||||||||||||||
Net assets | ||||||||||||||||||||||||||||||||
Beginning of period | 297,251 | 253,587 | 712,869 | 303,834 | 83,970 | 73,546 | 30,045 | 6,588 | ||||||||||||||||||||||||
End of period | $ | 345,700 | $ | 297,251 | $ | 1,106,020 | $ | 712,869 | $ | 52,850 | $ | 83,970 | $ | 92,780 | $ | 30,045 |
See accompanying Notes to Financial Statements.
112 | Annual Report | December 31, 2021 |
Statements of Assets and Liabilities
As of December 31, 2021 (dollar amounts in thousands)
Small-Mid Cap Growth Fund | Small Cap Growth Fund | Small Cap Value Fund | ||||||||||
Assets | ||||||||||||
Investments in securities, at cost | $ | 2,270,451 | $ | 522,658 | $ | 1,639,975 | ||||||
Investments in securities, at value | $ | 3,049,419 | $ | 698,036 | $ | 2,071,723 | ||||||
Receivable for securities sold | — | 11,706 | 216 | |||||||||
Receivable for fund shares sold | 8,294 | 3,137 | 874 | |||||||||
Receivable from Adviser | 153 | 15 | 1 | |||||||||
Dividend and interest receivable | 140 | 85 | 1,855 | |||||||||
Total assets | 3,058,006 | 712,979 | 2,074,669 | |||||||||
Liabilities | ||||||||||||
Payable for securities purchased | 532 | 1,341 | 3,493 | |||||||||
Payable for fund shares redeemed | 6,133 | 622 | 222 | |||||||||
Management fee payable | 2,575 | 673 | 1,280 | |||||||||
Distribution fee payable | 49 | 38 | 1 | |||||||||
Other payables and accrued expenses | 655 | 227 | 275 | |||||||||
Total liabilities | 9,944 | 2,901 | 5,271 | |||||||||
Net assets | $ | 3,048,062 | $ | 710,078 | $ | 2,069,398 | ||||||
Capital | ||||||||||||
Composition of net assets | ||||||||||||
Paid in capital | $ | 2,201,766 | $ | 528,201 | $ | 1,576,264 | ||||||
Total distributable earnings (loss) | 846,296 | 181,877 | 493,134 | |||||||||
Net assets | $ | 3,048,062 | $ | 710,078 | $ | 2,069,398 | ||||||
Class N shares | ||||||||||||
Net assets | $ | 232,166 | $ | 179,739 | $ | 3,313 | ||||||
Shares outstanding | 7,194,528 | 5,633,876 | 98,511 | |||||||||
Net asset value per share | $ | 32.27 | $ | 31.90 | $ | 33.63 | ||||||
Class I shares | ||||||||||||
Net assets | $ | 2,487,862 | $ | 402,629 | $ | 1,059,157 | ||||||
Shares outstanding | 71,654,175 | 10,731,683 | 31,539,710 | |||||||||
Net asset value per share | $ | 34.72 | $ | 37.52 | $ | 33.58 | ||||||
Class R6 shares | ||||||||||||
Net assets | $ | 328,034 | $ | 127,710 | $ | 1,006,928 | ||||||
Shares outstanding | 9,427,981 | 3,396,173 | 29,987,845 | |||||||||
Net asset value per share | $ | 34.79 | $ | 37.60 | $ | 33.58 |
See accompanying Notes to Financial Statements.
December 31, 2021 | William Blair Funds | 113 |
Statements of Operations
For the Year Ended December 31, 2021 (all amounts in thousands)
Small Cap Value Fund | ||||||||||||||||||||
Small-Mid Cap Growth Fund | Small Cap Growth Fund | Period Ended December 31, 2021 (a) | Year Ended October 31, 2021 | |||||||||||||||||
Investment income | ||||||||||||||||||||
Dividends | $ | 11,454 | $ | 2,394 | $ | 4,704 | $ | 26,013 | ||||||||||||
Less foreign tax withheld | (150 | ) | (40 | ) | — | (14 | ) | |||||||||||||
Interest | — | — | — | 2 | ||||||||||||||||
Total income | 11,304 | 2,354 | 4,704 | 26,001 | ||||||||||||||||
Expenses | ||||||||||||||||||||
Investment advisory fees | 34,175 | 8,111 | 2,579 | 13,395 | ||||||||||||||||
Distribution fees | 699 | 476 | 3 | 7 | ||||||||||||||||
Administration fees | — | — | — | 524 | ||||||||||||||||
Custodian fees | 75 | 57 | 7 | 85 | ||||||||||||||||
Transfer agent fees | 198 | 89 | 24 | 95 | ||||||||||||||||
Sub-transfer agent fees | ||||||||||||||||||||
Class N | 393 | 284 | 2 | 4 | (b) | |||||||||||||||
Class I | 3,480 | 403 | 78 | 1,690 | ||||||||||||||||
Professional fees | 291 | 85 | 20 | 88 | ||||||||||||||||
Registration fees | 87 | 51 | 10 | 51 | ||||||||||||||||
Shareholder reporting fees | 118 | 39 | 16 | 44 | ||||||||||||||||
Trustee fees | 242 | 48 | — | 33 | ||||||||||||||||
Other expenses | 177 | 53 | 15 | 38 | ||||||||||||||||
Total expenses before expense limitation | 39,935 | 9,696 | 2,754 | 16,054 | ||||||||||||||||
Expenses waived or reimbursed by the Adviser | ||||||||||||||||||||
Class N | (211 | ) | (108 | ) | (1 | ) | (1 | )(b) | ||||||||||||
Class I | (1,630 | ) | (9 | ) | — | — | ||||||||||||||
Class R6 | — | — | — | — | (b) | |||||||||||||||
Total expenses waived or reimbursed by the Adviser | (1,841 | ) | (117 | ) | (1 | ) | (1 | ) | ||||||||||||
Net expenses | 38,094 | 9,579 | 2,753 | 16,053 | ||||||||||||||||
Net investment income (loss) | (26,790 | ) | (7,225 | ) | 1,951 | 9,948 | ||||||||||||||
Realized and unrealized gain (loss) | ||||||||||||||||||||
Net realized gain (loss) on transactions from: | ||||||||||||||||||||
Investments in securities | 563,362 | 132,217 | 61,233 | 239,708 | ||||||||||||||||
Redemptions in-kind | 169,211 | — | — | — | ||||||||||||||||
Total net realized gain (loss) | 732,573 | 132,217 | 61,233 | 239,708 | ||||||||||||||||
Change in net unrealized appreciation (depreciation) of: | ||||||||||||||||||||
Investments in securities | (416,628 | ) | (38,580 | ) | 23,828 | 449,268 | ||||||||||||||
Change in net unrealized appreciation (depreciation) | (416,628 | ) | (38,580 | ) | 23,828 | 449,268 | ||||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 289,155 | $ | 86,412 | $ | 87,012 | $ | 698,924 |
(a) | For the period from November 1, 2021 to December 31, 2021. |
(b) | For the period from July 17, 2021 (Commencement of Operations) to October 31, 2021. |
See accompanying Notes to Financial Statements.
114 | Annual Report | December 31, 2021 |
Statements of Changes in Net Assets
For the Years Ended December 31, 2021 and 2020 (all amounts in thousands)
Small Cap Value Fund | ||||||||||||||||||||||||||||||
Small-Mid Cap Growth Fund | Small Cap Growth Fund | Period Ended December 31, | Year Ended October 31, | Year Ended October 31, | ||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 (a) | 2021 | 2020 | ||||||||||||||||||||||||
Operations | ||||||||||||||||||||||||||||||
Net investment income (loss) | $ | (26,790 | ) | $ | (20,276 | ) | $ | (7,225 | ) | $ | (4,664 | ) | $ | 1,951 | $ | 9,948 | $ | 3,431 | ||||||||||||
Net realized gain (loss) on investments, and other assets and liabilities | 732,573 | 172,271 | 132,217 | 88,364 | 61,233 | 239,708 | 5,972 | |||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments, and other assets and liabilities | (416,628 | ) | 703,070 | (38,580 | ) | 88,533 | 23,828 | 449,268 | (116,875 | ) | ||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 289,155 | 855,065 | 86,412 | 172,233 | 87,012 | 698,924 | (107,472 | ) | ||||||||||||||||||||||
Distributions to shareholders | ||||||||||||||||||||||||||||||
Class N | (21,416 | ) | (5,612 | ) | (32,137 | ) | (18,482 | ) | (117 | ) | — | (b) | — | |||||||||||||||||
Class I | (214,965 | ) | (51,667 | ) | (64,470 | ) | (35,006 | ) | (40,018 | ) | (184,473 | ) | (41,314 | ) | ||||||||||||||||
Class R6 | (27,879 | ) | (1,737 | ) | (18,771 | ) | (9,448 | ) | (38,470 | ) | — | (b) | — | |||||||||||||||||
Total distributions | (264,260 | ) | (59,016 | ) | (115,378 | ) | (62,936 | ) | (78,605 | ) | (184,473 | ) | (41,314 | ) | ||||||||||||||||
Capital stock transactions | ||||||||||||||||||||||||||||||
Proceeds from sale of shares | 760,395 | 829,348 | 138,428 | 113,709 | 156,798 | 1,256,445 | 484,278 | |||||||||||||||||||||||
Shares issued in connection with reorganization - See Note 1(b) | — | — | — | — | — | 45,734 | — | |||||||||||||||||||||||
Shares issued in reinvestment of income dividends and capital gain distributions | 258,615 | 58,002 | 113,063 | 62,018 | 77,431 | 181,788 | 40,801 | |||||||||||||||||||||||
Less cost of shares redeemed | (1,572,925 | ) | (1,012,131 | ) | (187,055 | ) | (280,953 | ) | (193,465 | ) | (1,159,600 | ) | (103,715 | ) | ||||||||||||||||
Net increase (decrease) in net assets resulting from capital share transactions | (553,915 | ) | (124,781 | ) | 64,436 | (105,226 | ) | 40,764 | 324,367 | 421,364 | ||||||||||||||||||||
Increase (decrease) in net assets | (529,020 | ) | 671,268 | 35,470 | 4,071 | 49,171 | 838,818 | 272,578 | ||||||||||||||||||||||
Net assets | ||||||||||||||||||||||||||||||
Beginning of period | 3,577,082 | 2,905,814 | 674,608 | 670,537 | 2,020,227 | 1,181,409 | 908,831 | |||||||||||||||||||||||
End of period | $ | 3,048,062 | $ | 3,577,082 | $ | 710,078 | $ | 674,608 | $ | 2,069,398 | $ | 2,020,227 | $ | 1,181,409 |
(a) | For the period from November 1, 2021 to December 31, 2021. |
(b) | For the period from July 17, 2021 (Commencement of Operations) to October 31, 2021. |
See accompanying Notes to Financial Statements.
December 31, 2021 | William Blair Funds | 115 |
Statements of Assets and Liabilities
As of December 31, 2021 (dollar amounts in thousands)
Global Leaders Fund | International Leaders Fund | International Growth Fund | Institutional International Growth Fund | |||||||||||||
Assets | ||||||||||||||||
Investments in securities, at cost | $ | 75,199 | $ | 881,185 | $ | 1,208,280 | $ | 731,420 | ||||||||
Investments in securities, at value | $ | 143,835 | $ | 1,307,726 | $ | 2,122,270 | $ | 1,283,519 | ||||||||
Foreign currency, at value (cost $ —; $517; $1,321; $40) | — | 518 | 1,330 | 41 | ||||||||||||
Receivable for fund shares sold | 73 | 2,354 | 1,713 | 114 | ||||||||||||
Receivable from Adviser | 19 | 115 | 10 | — | ||||||||||||
Dividend and interest receivable | 106 | 989 | 3,060 | 1,598 | ||||||||||||
Total assets | 144,033 | 1,311,702 | 2,128,383 | 1,285,272 | ||||||||||||
Liabilities | ||||||||||||||||
Payable for securities purchased | 48 | 2,194 | — | — | ||||||||||||
Payable for fund shares redeemed | 4 | 163 | 983 | 959 | ||||||||||||
Management fee payable | 102 | 923 | 1,828 | 1,026 | ||||||||||||
Distribution fee payable | 3 | 10 | 62 | — | ||||||||||||
Foreign capital gains tax liability | — | 1,409 | 1,911 | 1,163 | ||||||||||||
Other payables and accrued expenses | 94 | 273 | 702 | 281 | ||||||||||||
Total liabilities | 251 | 4,972 | 5,486 | 3,429 | ||||||||||||
Net assets | $ | 143,782 | $ | 1,306,730 | $ | 2,122,897 | $ | 1,281,843 | ||||||||
Capital | ||||||||||||||||
Composition of net assets | ||||||||||||||||
Paid in capital | $ | 73,982 | $ | 889,964 | $ | 1,125,250 | $ | 740,121 | ||||||||
Total distributable earnings (loss) | 69,800 | 416,766 | 997,647 | 541,722 | ||||||||||||
Net assets | $ | 143,782 | $ | 1,306,730 | $ | 2,122,897 | $ | 1,281,843 | ||||||||
Class N shares | ||||||||||||||||
Net assets | $ | 13,709 | $ | 47,234 | $ | 293,481 | — | |||||||||
Shares outstanding | 715,217 | 1,945,483 | 7,810,602 | — | ||||||||||||
Net asset value per share | $ | 19.17 | $ | 24.28 | $ | 37.57 | — | |||||||||
Class I shares | ||||||||||||||||
Net assets | $ | 124,488 | $ | 591,500 | $ | 1,702,775 | — | |||||||||
Shares outstanding | 6,455,622 | 24,232,476 | 44,017,084 | — | ||||||||||||
Net asset value per share | $ | 19.28 | $ | 24.41 | $ | 38.68 | — | |||||||||
Institutional/Class R6 shares | ||||||||||||||||
Net assets | $ | 5,585 | $ | 667,996 | $ | 126,641 | $ | 1,281,843 | ||||||||
Shares outstanding | 289,412 | 27,362,717 | 3,270,537 | 67,346,461 | ||||||||||||
Net asset value per share | $ | 19.30 | $ | 24.41 | $ | 38.72 | $ | 19.03 |
See accompanying Notes to Financial Statements.
116 | Annual Report | December 31, 2021 |
Statements of Operations
For the Year Ended December 31, 2021 (all amounts in thousands)
Global Leaders Fund | International Leaders Fund | International Growth Fund | Institutional International Growth Fund | ||||||||||||||||
Investment income | |||||||||||||||||||
Dividends | $ | 854 | $ | 9,038 | $ | 18,864 | $ | 10,657 | |||||||||||
Less foreign tax withheld | (54 | ) | (1,054 | ) | (1,900 | ) | (1,094 | ) | |||||||||||
Other income | — | 164 | 1,271 | 828 | |||||||||||||||
Total income | 800 | 8,148 | 18,235 | 10,391 | |||||||||||||||
Expenses | |||||||||||||||||||
Investment advisory fees | 1,161 | 10,420 | 23,538 | 12,625 | |||||||||||||||
Distribution fees | 32 | 88 | 749 | — | |||||||||||||||
Custodian fees | 59 | 197 | 349 | 237 | |||||||||||||||
Transfer agent fees | 9 | 54 | 111 | 35 | |||||||||||||||
Sub-transfer agent fees | |||||||||||||||||||
Class N | 18 | 51 | 467 | — | |||||||||||||||
Class I | 97 | 433 | 1,590 | — | |||||||||||||||
Professional fees | 61 | 167 | 276 | 196 | |||||||||||||||
Registration fees | 37 | 123 | 39 | 22 | |||||||||||||||
Shareholder reporting fees | 6 | 27 | 70 | 10 | |||||||||||||||
Trustee fees | 9 | 76 | 157 | 91 | |||||||||||||||
Other expenses | 12 | 69 | 120 | 54 | |||||||||||||||
Total expenses before expense limitation | 1,501 | 11,705 | 27,466 | 13,270 | |||||||||||||||
Expenses waived or reimbursed by the Adviser | |||||||||||||||||||
Class N | (30 | ) | (54 | ) | (50 | ) | — | ||||||||||||
Class I | (205 | ) | (478 | ) | — | — | |||||||||||||
Institutional/Class R6 | (6 | ) | (396 | ) | — | — | |||||||||||||
Total expenses waived or reimbursed by the Adviser | (241 | ) | (928 | ) | (50 | ) | — | ||||||||||||
Net expenses | 1,260 | 10,777 | 27,416 | 13,270 | |||||||||||||||
Net investment income (loss) | (460 | ) | (2,629 | ) | (9,181 | ) | (2,879 | ) | |||||||||||
Realized and unrealized gain (loss) | |||||||||||||||||||
Net realized gain (loss) on transactions from: | |||||||||||||||||||
Investments in securities (net of foreign capital gains tax paid $—; $73; $ — ; $29) | 9,128 | 39,232 | 332,992 | 172,780 | |||||||||||||||
Foreign currency transactions | (1 | ) | (142 | ) | (282 | ) | (233 | ) | |||||||||||
Total net realized gain (loss) | 9,127 | 39,090 | 332,710 | 172,547 | |||||||||||||||
Change in net unrealized appreciation (depreciation) of: | |||||||||||||||||||
Investments in securities (net of foreign capital gains tax accrual $—; $447; $1,468; $737) | 12,193 | 79,849 | (123,979 | ) | (51,441 | ) | |||||||||||||
Foreign currency translations | (7 | ) | (38 | ) | (221 | ) | (151 | ) | |||||||||||
Change in net unrealized appreciation (depreciation) | 12,186 | 79,811 | (124,200 | ) | (51,592 | ) | |||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 20,853 | $ | 116,272 | $ | 199,329 | $ | 118,076 |
See accompanying Notes to Financial Statements.
December 31, 2021 | William Blair Funds | 117 |
Statements of Changes in Net Assets
For the Years Ended December 31, 2021 and 2020 (all amounts in thousands)
Global Leaders Fund | International Leaders Fund | International Growth Fund | Institutional International Growth Fund | |||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Operations | ||||||||||||||||||||||||||||||||
Net investment income (loss) | $ | (460 | ) | $ | (101 | ) | $ | (2,629 | ) | $ | 449 | $ | (9,181 | ) | $ | (5,712 | ) | $ | (2,879 | ) | $ | (553 | ) | |||||||||
Net realized gain (loss) on investments, and other assets and liabilities | 9,127 | 24,259 | 39,090 | 8,912 | 332,710 | 74,910 | 172,547 | 258,776 | ||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments, and other assets and liabilities | 12,186 | 7,605 | 79,811 | 191,243 | (124,200 | ) | 491,289 | (51,592 | ) | 130,546 | ||||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 20,853 | 31,763 | 116,272 | 200,604 | 199,329 | 560,487 | 118,076 | 388,769 | ||||||||||||||||||||||||
Distributions to shareholders | ||||||||||||||||||||||||||||||||
Class N | (737 | ) | (1,323 | ) | (1,210 | ) | (140 | ) | (31,606 | ) | (2,350 | ) | — | — | ||||||||||||||||||
Class I | (6,705 | ) | (12,213 | ) | (16,237 | ) | (2,856 | ) | (181,589 | ) | (21,253 | ) | — | — | ||||||||||||||||||
Institutional/Class R6 | (299 | ) | (323 | ) | (18,646 | ) | (5,774 | ) | (13,865 | ) | (1,273 | ) | (181,394 | ) | (151,353 | ) | ||||||||||||||||
Total distributions | (7,741 | ) | (13,859 | ) | (36,093 | ) | (8,770 | ) | (227,060 | ) | (24,876 | ) | (181,394 | ) | (151,353 | ) | ||||||||||||||||
Capital stock transactions | ||||||||||||||||||||||||||||||||
Proceeds from sale of shares | 13,948 | 17,101 | 383,722 | 390,602 | 199,696 | 345,376 | 48,760 | 148,064 | ||||||||||||||||||||||||
Shares issued in reinvestment of income dividends and capital gain distributions | 7,707 | 13,852 | 35,670 | 8,654 | 211,018 | 23,253 | 181,112 | 150,369 | ||||||||||||||||||||||||
Less cost of shares redeemed | (13,167 | ) | (98,384 | ) | (293,194 | ) | (144,641 | ) | (572,736 | ) | (700,649 | ) | (211,193 | ) | (1,102,278 | ) | ||||||||||||||||
Net increase (decrease) in net assets resulting from capital share transactions | 8,488 | (67,431 | ) | 126,198 | 254,615 | (162,022 | ) | (332,020 | ) | 18,679 | (803,845 | ) | ||||||||||||||||||||
Increase (decrease) in net assets | 21,600 | (49,527 | ) | 206,377 | 446,449 | (189,753 | ) | 203,591 | (44,639 | ) | (566,429 | ) | ||||||||||||||||||||
Net assets | ||||||||||||||||||||||||||||||||
Beginning of period | 122,182 | 171,709 | 1,100,353 | 653,904 | 2,312,650 | 2,109,059 | 1,326,482 | 1,892,911 | ||||||||||||||||||||||||
End of period | $ | 143,782 | $ | 122,182 | $ | 1,306,730 | $ | 1,100,353 | $ | 2,122,897 | $ | 2,312,650 | $ | 1,281,843 | $ | 1,326,482 |
See accompanying Notes to Financial Statements.
118 | Annual Report | December 31, 2021 |
Statements of Assets and Liabilities
As of December 31, 2021 (dollar amounts in thousands)
International Small Cap Growth Fund | Emerging Markets Leaders Fund | Emerging Markets Growth Fund | Emerging Markets Small Cap Growth Fund | |||||||||||||
Assets | ||||||||||||||||
Investments in securities, at cost | $ | 294,485 | $ | 439,141 | $ | 743,028 | $ | 409,350 | ||||||||
Investments in securities, at value | $ | 383,349 | $ | 479,289 | $ | 1,046,086 | $ | 503,320 | ||||||||
Foreign currency, at value (cost $264; $227; $3,544; $1,254) | 268 | 227 | 3,552 | 1,256 | ||||||||||||
Receivable for securities sold | — | — | — | 3,068 | ||||||||||||
Receivable for fund shares sold | 32 | 120 | 4,293 | 164 | ||||||||||||
Receivable from Adviser | — | 43 | — | 11 | ||||||||||||
Dividend and interest receivable | 545 | 213 | 902 | 135 | ||||||||||||
Total assets | 384,194 | 479,892 | 1,054,833 | 507,954 | ||||||||||||
Liabilities | ||||||||||||||||
Payable for securities purchased | — | 3,021 | 3,747 | 458 | ||||||||||||
Payable for fund shares redeemed | 191 | 22 | 181 | 517 | ||||||||||||
Management fee payable | 324 | 432 | 967 | 472 | ||||||||||||
Distribution fee payable | 1 | — | 6 | 1 | ||||||||||||
Foreign capital gains tax liability | — | 2,520 | 7,565 | 5,681 | ||||||||||||
Other payables and accrued expenses | 167 | 212 | 529 | 417 | ||||||||||||
Total liabilities | 683 | 6,207 | 12,995 | 7,546 | ||||||||||||
Net assets | $ | 383,511 | $ | 473,685 | $ | 1,041,838 | $ | 500,408 | ||||||||
Capital | ||||||||||||||||
Composition of net assets | ||||||||||||||||
Paid in capital | $ | 298,616 | $ | 441,980 | $ | 755,260 | $ | 401,854 | ||||||||
Total distributable earnings (loss) | 84,895 | 31,705 | 286,578 | 98,554 | ||||||||||||
Net assets | $ | 383,511 | $ | 473,685 | $ | 1,041,838 | $ | 500,408 | ||||||||
Class N shares | ||||||||||||||||
Net assets | $ | 3,540 | $ | 2,096 | $ | 28,565 | $ | 4,262 | ||||||||
Shares outstanding | 213,737 | 184,943 | 1,836,994 | 181,229 | ||||||||||||
Net asset value per share | $ | 16.56 | $ | 11.33 | $ | 15.55 | $ | 23.52 | ||||||||
Class I shares | ||||||||||||||||
Net assets | $ | 136,573 | $ | 42,750 | $ | 190,985 | $ | 171,994 | ||||||||
Shares outstanding | 8,127,972 | 3,771,771 | 12,046,848 | 7,229,505 | ||||||||||||
Net asset value per share | $ | 16.80 | $ | 11.33 | $ | 15.85 | $ | 23.79 | ||||||||
Class R6 shares | ||||||||||||||||
Net assets | $ | 243,398 | $ | 428,839 | $ | 822,288 | $ | 324,152 | ||||||||
Shares outstanding | 14,392,725 | 37,883,768 | 51,273,233 | 13,597,285 | ||||||||||||
Net asset value per share | $ | 16.91 | $ | 11.32 | $ | 16.04 | $ | 23.84 |
See accompanying Notes to Financial Statements.
December 31, 2021 | William Blair Funds | 119 |
Statements of Operations
For the Year Ended December 31, 2021 (all amounts in thousands)
International Small Cap Growth Fund | Emerging Markets Leaders Fund | Emerging Markets Growth Fund | Emerging Markets Small Cap Growth Fund | ||||||||||||||||
Investment income | |||||||||||||||||||
Dividends | $ | 3,185 | $ | 3,611 | $ | 12,525 | $ | 3,709 | |||||||||||
Less foreign tax withheld | (368 | ) | (458 | ) | (1,829 | ) | (490 | ) | |||||||||||
Other income | 102 | — | — | — | |||||||||||||||
Total income | 2,919 | 3,153 | 10,696 | 3,219 | |||||||||||||||
Expenses | |||||||||||||||||||
Investment advisory fees | 3,684 | 3,729 | 13,039 | 4,811 | |||||||||||||||
Distribution fees | 8 | 6 | 82 | 10 | |||||||||||||||
Custodian fees | 132 | 124 | 350 | 275 | |||||||||||||||
Transfer agent fees | 22 | 17 | 61 | 27 | |||||||||||||||
Sub-transfer agent fees | |||||||||||||||||||
Class N | 4 | 3 | 42 | 5 | |||||||||||||||
Class I | 133 | 44 | 167 | 128 | |||||||||||||||
Professional fees | 111 | 90 | 187 | 158 | |||||||||||||||
Registration fees | 47 | 48 | 68 | 52 | |||||||||||||||
Shareholder reporting fees | 16 | 9 | 19 | 16 | |||||||||||||||
Trustee fees | 23 | 20 | 80 | 22 | |||||||||||||||
Other expenses | 24 | 27 | 70 | 24 | |||||||||||||||
Total expenses before expense limitation | 4,204 | 4,117 | 14,165 | 5,528 | |||||||||||||||
Expenses waived or reimbursed by the Adviser | |||||||||||||||||||
Class N | — | (4 | ) | — | (2 | ) | |||||||||||||
Class I | — | (73 | ) | — | (10 | ) | |||||||||||||
Class R6 | — | (276 | ) | — | — | ||||||||||||||
Total expenses waived or reimbursed by the Adviser | — | (353 | ) | — | (12 | ) | |||||||||||||
Net expenses | 4,204 | 3,764 | 14,165 | 5,516 | |||||||||||||||
Net investment income (loss) | (1,285 | ) | (611 | ) | (3,469 | ) | (2,297 | ) | |||||||||||
Realized and unrealized gain (loss) | |||||||||||||||||||
Net realized gain (loss) on transactions from: | |||||||||||||||||||
Investments in securities (net of foreign capital gains tax paid $—; $640; $2,240; $2,941) | 51,053 | 30,377 | 193,390 | 57,784 | |||||||||||||||
Foreign currency transactions | (88 | ) | (37 | ) | (983 | ) | (420 | ) | |||||||||||
Total net realized gain (loss) | 50,965 | 30,340 | 192,407 | 57,364 | |||||||||||||||
Change in net unrealized appreciation (depreciation) of: | |||||||||||||||||||
Investments in securities (net of foreign capital gains tax accrual $—; $1,052; $4,675; $5,159) | (13,204 | ) | (58,107 | ) | (147,119 | ) | (1,756 | ) | |||||||||||
Foreign currency translations | (51 | ) | 1 | (6 | ) | 5 | |||||||||||||
Change in net unrealized appreciation (depreciation) | (13,255 | ) | (58,106 | ) | (147,125 | ) | (1,751 | ) | |||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 36,425 | $ | (28,377 | ) | $ | 41,813 | $ | 53,316 |
See accompanying Notes to Financial Statements.
120 | Annual Report | December 31, 2021 |
Statements of Changes in Net Assets
For the Years Ended December 31, 2021 and 2020 (all amounts in thousands)
International Small Cap Growth Fund | Emerging Markets Leaders Fund | Emerging Markets Growth Fund | Emerging Markets Small Cap Growth Fund | |||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||||||||
Operations | ||||||||||||||||||||||||||||||||
Net investment income (loss) | $ | (1,285 | ) | $ | (46 | ) | $ | (611 | ) | $ | 75 | $ | (3,469 | ) | $ | (2,057 | ) | $ | (2,297 | ) | $ | (188 | ) | |||||||||
Net realized gain (loss) on investments, and other assets and liabilities | 50,965 | 32,819 | 30,340 | 8,003 | 192,407 | 74,647 | 57,364 | 46,512 | ||||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments, and other assets and liabilities | (13,255 | ) | 41,601 | (58,106 | ) | 49,105 | (147,125 | ) | 265,671 | (1,751 | ) | 29,571 | ||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 36,425 | 74,374 | (28,377 | ) | 57,183 | 41,813 | 338,261 | 53,316 | 75,895 | |||||||||||||||||||||||
Distributions to shareholders | ||||||||||||||||||||||||||||||||
Class N | (504 | ) | (63 | ) | (114 | ) | (15 | ) | (5,480 | ) | (531 | ) | (333 | ) | — | |||||||||||||||||
Class I | (20,759 | ) | (3,008 | ) | (3,247 | ) | (621 | ) | (30,440 | ) | (4,443 | ) | (13,825 | ) | (65 | ) | ||||||||||||||||
Class R6 | (34,265 | ) | (4,066 | ) | (32,392 | ) | (2,293 | ) | (144,353 | ) | (42,354 | ) | (26,855 | ) | (129 | ) | ||||||||||||||||
Total distributions | (55,528 | ) | (7,137 | ) | (35,753 | ) | (2,929 | ) | (180,273 | ) | (47,328 | ) | (41,013 | ) | (194 | ) | ||||||||||||||||
Capital stock transactions | ||||||||||||||||||||||||||||||||
Proceeds from sale of shares | 65,065 | 42,647 | 407,452 | 61,028 | 303,585 | 318,162 | 242,540 | 71,699 | ||||||||||||||||||||||||
Shares issued in reinvestment of income dividends and capital gain distributions | 49,466 | 6,416 | 35,512 | 2,899 | 167,335 | 44,146 | 40,338 | 191 | ||||||||||||||||||||||||
Less cost of shares redeemed | (48,798 | ) | (88,485 | ) | (167,286 | ) | (94,327 | ) | (486,358 | ) | (247,697 | ) | (102,182 | ) | (117,803 | ) | ||||||||||||||||
Net increase (decrease) in net assets resulting from capital share transactions | 65,733 | (39,422 | ) | 275,678 | (30,400 | ) | (15,438 | ) | 114,611 | 180,696 | (45,913 | ) | ||||||||||||||||||||
Increase (decrease) in net assets | 46,630 | 27,815 | 211,548 | 23,854 | (153,898 | ) | 405,544 | 192,999 | 29,788 | |||||||||||||||||||||||
Net assets | ||||||||||||||||||||||||||||||||
Beginning of period | 336,881 | 309,066 | 262,137 | 238,283 | 1,195,736 | 790,192 | 307,409 | 277,621 | ||||||||||||||||||||||||
End of period | $ | 383,511 | $ | 336,881 | $ | 473,685 | $ | 262,137 | $ | 1,041,838 | $ | 1,195,736 | $ | 500,408 | $ | 307,409 |
See accompanying Notes to Financial Statements.
December 31, 2021 | William Blair Funds | 121 |
Statements of Assets and Liabilities
As of December 31, 2021 (dollar amounts in thousands)
China Growth Fund | Bond Fund | Short Duration Bond Fund (a) | Ultra-Short Duration Bond Fund (b) | ||||||||||||||||
Assets | |||||||||||||||||||
Investments in securities, at cost | $ | 7,691 | $ | 288,310 | $ | 38,514 | $ | 105,766 | |||||||||||
Investments in securities, at value | $ | 7,260 | $ | 296,275 | $ | 38,699 | $ | 105,356 | |||||||||||
Cash | — | — | 13 | — | |||||||||||||||
Receivable for securities sold | — | 15,314 | 4,082 | 13,212 | |||||||||||||||
Receivable for fund shares sold | — | 39 | 12 | 199 | |||||||||||||||
Receivable from Adviser | 16 | 6 | 116 | 35 | |||||||||||||||
Dividend and interest receivable | — | 1,642 | 121 | 188 | |||||||||||||||
Total assets | 7,276 | 313,276 | 43,043 | 118,990 | |||||||||||||||
Liabilities | |||||||||||||||||||
Security sold, not yet purchased, at value (proceeds $—; $15,314; $4,082; $11,211) | — | 15,333 | 4,087 | 11,225 | |||||||||||||||
Payable for variation margin on centrally cleared swaps | — | 15 | 3 | — | |||||||||||||||
Payable for fund shares redeemed | — | 412 | 16 | 70 | |||||||||||||||
Payable to custodian | — | — | — | 1,415 | |||||||||||||||
Management fee payable | 6 | 76 | 8 | 29 | |||||||||||||||
Distribution fee payable | — | 5 | 2 | 2 | |||||||||||||||
Distributions payable to shareholders | — | — | — | 8 | |||||||||||||||
Other payables and accrued expenses | 45 | 113 | 85 | 90 | |||||||||||||||
Total liabilities | 51 | 15,954 | 4,201 | 12,839 | |||||||||||||||
Net assets | $ | 7,225 | $ | 297,322 | $ | 38,842 | $ | 106,151 | |||||||||||
Capital | |||||||||||||||||||
Composition of net assets | |||||||||||||||||||
Paid in capital | $ | 7,696 | $ | 308,950 | $ | 45,745 | $ | 138,308 | |||||||||||
Total distributable earnings (loss) | (471 | ) | (11,628 | ) | (6,903 | ) | (32,157 | ) | |||||||||||
Net assets | $ | 7,225 | $ | 297,322 | $ | 38,842 | $ | 106,151 | |||||||||||
Class N shares | |||||||||||||||||||
Net assets | $ | — | $ | 36,369 | $ | 14,380 | $ | 12,497 | |||||||||||
Shares outstanding | — | 3,502,518 | 1,704,380 | 1,482,163 | |||||||||||||||
Net asset value per share | $ | — | $ | 10.38 | $ | 8.44 | $ | 8.43 | |||||||||||
Class I shares | |||||||||||||||||||
Net assets | $ | 5,538 | $ | 211,636 | $ | 24,241 | $ | 76,364 | |||||||||||
Shares outstanding | 580,424 | 20,631,404 | 2,892,828 | 9,063,406 | |||||||||||||||
Net asset value per share | $ | 9.54 | $ | 10.26 | $ | 8.38 | $ | 8.43 | |||||||||||
Class R6 shares | |||||||||||||||||||
Net assets | $ | 1,687 | $ | 49,317 | $ | 221 | $ | 17,290 | |||||||||||
Shares outstanding | 176,782 | 4,812,713 | 26,320 | 2,051,385 | |||||||||||||||
Net asset value per share | $ | 9.54 | $ | 10.25 | $ | 8.38 | $ | 8.43 |
(a) | Formerly known as Income Fund. |
(b) | Formerly known as Low Duration Fund. |
See accompanying Notes to Financial Statements.
122 | Annual Report | December 31, 2021 |
Statements of Operations
For the Year Ended December 31, 2021 (all amounts in thousands)
China Growth Fund (a) | Bond Fund | Short Duration Bond Fund (b) | Ultra-Short Duration Bond Fund (c) | ||||||||||||||||
Investment income | |||||||||||||||||||
Dividends | $ | 1 | $ | — | $ | — | $ | — | |||||||||||
Interest | — | 7,243 | 846 | 1,268 | |||||||||||||||
Total income | 1 | 7,243 | 846 | 1,268 | |||||||||||||||
Expenses | |||||||||||||||||||
Investment advisory fees | 15 | 966 | 165 | 439 | |||||||||||||||
Distribution fees | — | 59 | 28 | 23 | |||||||||||||||
Custodian fees | 17 | 87 | 86 | 99 | |||||||||||||||
Transfer agent fees | 3 | 94 | 11 | 14 | |||||||||||||||
Sub-transfer agent fees | |||||||||||||||||||
Class N | — | 51 | 25 | 19 | |||||||||||||||
Class I | — | 175 | 16 | 49 | |||||||||||||||
Professional fees | 34 | 57 | 120 | 79 | |||||||||||||||
Registration fees | 2 | 56 | 48 | 59 | |||||||||||||||
Shareholder reporting fees | — | 12 | 8 | 5 | |||||||||||||||
Trustee fees | — | 22 | 5 | 11 | |||||||||||||||
Other expenses | — | 21 | 11 | 16 | |||||||||||||||
Total expenses before expense limitation | 71 | 1,600 | 523 | 813 | |||||||||||||||
Expenses waived or reimbursed by the Adviser | |||||||||||||||||||
Class N | — | (35 | ) | (61 | ) | (34 | ) | ||||||||||||
Class I | (34 | ) | (77 | ) | (86 | ) | (145 | ) | |||||||||||
Class R6 | (22 | ) | (4 | ) | (1 | ) | (39 | ) | |||||||||||
Total expenses waived or reimbursed by the Adviser | (56 | ) | (116 | ) | (148 | ) | (218 | ) | |||||||||||
Net expenses | 15 | 1,484 | 375 | 595 | |||||||||||||||
Net investment income (loss) | (14 | ) | 5,759 | 471 | 673 | ||||||||||||||
Realized and unrealized gain (loss) | |||||||||||||||||||
Net realized gain (loss) on transactions from: | |||||||||||||||||||
Investments in securities | (35 | ) | 5,170 | 634 | 125 | ||||||||||||||
Swaps | — | (1,864 | ) | (576 | ) | — | |||||||||||||
Foreign currency transactions | (4 | ) | — | — | — | ||||||||||||||
Total net realized gain (loss) | (39 | ) | 3,306 | 58 | 125 | ||||||||||||||
Change in net unrealized appreciation (depreciation) of: | |||||||||||||||||||
Investments in securities | (431 | ) | (14,888 | ) | (1,834 | ) | (1,638 | ) | |||||||||||
Swaps | — | 1,036 | 394 | — | |||||||||||||||
Change in net unrealized appreciation (depreciation) | (431 | ) | (13,852 | ) | (1,440 | ) | (1,638 | ) | |||||||||||
Voluntary Payment from Adviser | — | 163 | 64 | 179 | |||||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | (484 | ) | $ | (4,624 | ) | $ | (847 | ) | $ | (661 | ) |
(a) | For the period from August 27, 2021 (Commencement of Operations) to December 31, 2021. |
(b) | Formerly known as Income Fund. |
(c) | Formerly known as Low Duration Fund. |
See accompanying Notes to Financial Statements.
December 31, 2021 | William Blair Funds | 123 |
Statements of Changes in Net Assets
For the Years Ended December 31, 2021 and 2020 (all amounts in thousands)
China Growth Fund | Bond Fund | Short Duration Bond Fund (b) | Ultra-Short Duration Bond Fund (c) | |||||||||||||||||||||||||
2021(a) | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||||
Operations | ||||||||||||||||||||||||||||
Net investment income (loss) | $ | (14 | ) | $ | 5,759 | $ | 6,928 | $ | 471 | $ | 829 | $ | 673 | $ | 1,343 | |||||||||||||
Net realized gain (loss) on investments, and other assets and liabilities | (39 | ) | 3,306 | 3,824 | 58 | 161 | 125 | (409 | ) | |||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments, and other assets and liabilities | (431 | ) | (13,852 | ) | 9,883 | (1,440 | ) | 1,281 | (1,638 | ) | 1,479 | |||||||||||||||||
Voluntary Payment from Adviser | — | 163 | — | 64 | — | 179 | — | |||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | (484 | ) | (4,624 | ) | 20,635 | (847 | ) | 2,271 | (661 | ) | 2,413 | |||||||||||||||||
Distributions to shareholders | ||||||||||||||||||||||||||||
Class N | — | (1,001 | ) | (1,089 | ) | (293 | ) | (546 | ) | (289 | ) | (189 | ) | |||||||||||||||
Class I | — | (6,706 | ) | (7,496 | ) | (621 | ) | (1,009 | ) | (2,083 | ) | (1,833 | ) | |||||||||||||||
Class R6 | — | (1,464 | ) | (1,641 | ) | (3 | ) | (2 | ) | (566 | ) | (1,168 | ) | |||||||||||||||
Total distributions | — | (9,171 | ) | (10,226 | ) | (917 | ) | (1,557 | ) | (2,938 | ) | (3,190 | ) | |||||||||||||||
Capital stock transactions | ||||||||||||||||||||||||||||
Proceeds from sale of shares | 7,722 | 86,812 | 95,911 | 11,056 | 33,540 | 83,213 | 166,102 | |||||||||||||||||||||
Shares issued in reinvestment of income dividends and capital gain distributions | — | 8,015 | 8,711 | 868 | 1,470 | 2,652 | 2,649 | |||||||||||||||||||||
Less cost of shares redeemed | (13 | ) | (104,430 | ) | (76,446 | ) | (39,640 | ) | (18,745 | ) | (134,495 | ) | (86,109 | ) | ||||||||||||||
Net increase (decrease) in net assets resulting from capital share transactions | 7,709 | (9,603 | ) | 28,176 | (27,716 | ) | 16,265 | (48,630 | ) | 82,642 | ||||||||||||||||||
Increase (decrease) in net assets | 7,225 | (23,398 | ) | 38,585 | (29,480 | ) | 16,979 | (52,229 | ) | 81,865 | ||||||||||||||||||
Net assets | ||||||||||||||||||||||||||||
Beginning of period | — | 320,720 | 282,135 | 68,322 | 51,343 | 158,380 | 76,515 | |||||||||||||||||||||
End of period | $ | 7,225 | $ | 297,322 | $ | 320,720 | $ | 38,842 | $ | 68,322 | $ | 106,151 | $ | 158,380 |
(a) | For the period from August 27, 2021 (Commencement of Operations) to December 31, 2021. |
(b) | Formerly known as Income Fund. |
(c) | Formerly known as Low Duration Fund. |
See accompanying Notes to Financial Statements.
124 | Annual Report | December 31, 2021 |
Statements of Assets and Liabilities
As of December 31, 2021 (dollar amounts in thousands)
Emerging Markets Debt Fund | Macro Allocation Fund | |||||||
Assets | ||||||||
Investments in securities, at cost | $ | 52,580 | $ | 163,349 | ||||
Investments in securities, at value | $ | 50,576 | $ | 184,544 | ||||
Cash | 1 | 297 | ||||||
Foreign currency, at value (cost $—; $9) | — | 9 | ||||||
Segregated cash at broker | 234 | — | ||||||
Receivable for securities sold | — | 5,110 | ||||||
Receivable for fund shares sold | — | 15 | ||||||
Receivable for futures variation margin | — | 392 | ||||||
Receivable for variation margin on centrally cleared swaps | — | 1 | ||||||
Receivable from Adviser | 34 | — | ||||||
Dividend and interest receivable | 818 | 782 | ||||||
Unrealized appreciation on swap contracts | — | 177 | ||||||
Unrealized appreciation on forward foreign currency contracts | — | 1,204 | ||||||
Total assets | 51,663 | 192,531 | ||||||
Liabilities | ||||||||
Payable for variation margin on centrally cleared swaps | 2 | — | ||||||
Payable for fund shares redeemed | 18 | 312 | ||||||
Unrealized depreciation on forward foreign currency contracts | 26 | 3,061 | ||||||
Management fee payable | 28 | 164 | ||||||
Distribution fee payable | — | 1 | ||||||
Other payables and accrued expenses | 95 | 197 | ||||||
Total liabilities | 169 | 3,735 | ||||||
Net assets | $ | 51,494 | $ | 188,796 | ||||
Capital | ||||||||
Composition of net assets | ||||||||
Paid in capital | $ | 53,738 | $ | 367,861 | ||||
Total distributable earnings (loss) | (2,244 | ) | (179,065 | ) | ||||
Net assets | $ | 51,494 | $ | 188,796 | ||||
Class N shares | ||||||||
Net assets | $ | — | $ | 6,673 | ||||
Shares outstanding | — | 616,762 | ||||||
Net asset value per share | $ | — | $ | 10.82 | ||||
Class I shares | ||||||||
Net assets | $ | 1,484 | $ | 67,139 | ||||
Shares outstanding | 154,717 | 6,251,838 | ||||||
Net asset value per share | $ | 9.59 | $ | 10.74 | ||||
Class R6 shares | ||||||||
Net assets | $ | 50,010 | $ | 114,984 | ||||
Shares outstanding | 5,217,308 | 10,708,228 | ||||||
Net asset value per share | $ | 9.59 | $ | 10.74 |
See accompanying Notes to Financial Statements.
December 31, 2021 | William Blair Funds | 125 |
Statements of Operations
For the Year Ended December 31, 2021 (all amounts in thousands)
Emerging Markets Debt Fund (a) | Macro Allocation Fund | ||||||||
Investment income | |||||||||
Dividends | $ | — | $ | 3,123 | |||||
Less foreign tax withheld | — | (150 | ) | ||||||
Interest | 1,371 | 1,667 | |||||||
Less foreign tax withheld | (1 | ) | — | ||||||
Total income | 1,370 | 4,640 | |||||||
Expenses | |||||||||
Investment advisory fees | 169 | 2,000 | |||||||
Distribution fees | — | 18 | |||||||
Custodian fees | 63 | 247 | |||||||
Transfer agent fees | 4 | 10 | |||||||
Sub-transfer agent fees | |||||||||
Class N | — | 9 | |||||||
Class I | 1 | 116 | |||||||
Professional fees | 57 | 68 | |||||||
Registration fees | 3 | 68 | |||||||
Shareholder reporting fees | 2 | 9 | |||||||
Trustee fees | 3 | 23 | |||||||
Other expenses | 2 | 77 | |||||||
Total expenses before expense limitation | 304 | 2,645 | |||||||
Expenses waived or reimbursed by the Adviser | |||||||||
Class N | — | (7 | ) | ||||||
Class I | (4 | ) | (93 | ) | |||||
Class R6 | (130 | ) | (38 | ) | |||||
Total expenses waived or reimbursed by the Adviser | (134 | ) | (138 | ) | |||||
Net expenses | 170 | 2,507 | |||||||
Net investment income (loss) | 1,200 | 2,133 | |||||||
Realized and unrealized gain (loss) | |||||||||
Net realized gain (loss) on transactions from: | |||||||||
Investments in securities | (268 | ) | 71,688 | ||||||
Futures contracts | — | (31,194 | ) | ||||||
Swaps | (145 | ) | 1,416 | ||||||
Forward foreign currency contracts | 187 | (1,781 | ) | ||||||
Foreign currency transactions | (1 | ) | 19 | ||||||
Total net realized gain (loss) | (227 | ) | 40,148 | ||||||
Change in net unrealized appreciation (depreciation) of: | |||||||||
Investments in securities | (2,004 | ) | (36,845 | ) | |||||
Futures contracts | — | 4,447 | |||||||
Swaps | 78 | (446 | ) | ||||||
Forward foreign currency contracts | (26 | ) | (2,669 | ) | |||||
Foreign currency translations | (2 | ) | (71 | ) | |||||
Change in net unrealized appreciation (depreciation) | (1,954 | ) | (35,584 | ) | |||||
Net increase (decrease) in net assets resulting from operations | $ | (981 | ) | $ | 6,697 |
(a) | For the period from May 25, 2021 (Commencement of Operations) to December 31, 2021. |
See accompanying Notes to Financial Statements.
126 | Annual Report | December 31, 2021 |
Statements of Changes in Net Assets
For the Years Ended December 31, 2021 and 2020 (all amounts in thousands)
Emerging Markets | ||||||||||||||
Debt Fund (a) | Macro Allocation Fund | |||||||||||||
2021 | 2021 | 2020 | ||||||||||||
Operations | ||||||||||||||
Net investment income (loss) | $ | 1,200 | $ | 2,133 | $ | 3,426 | ||||||||
Net realized gain (loss) on investments, and other assets and liabilities | (227 | ) | 40,148 | (31,014 | ) | |||||||||
Change in net unrealized appreciation(depreciation) on investments, and other assets and liabilities | (1,954 | ) | (35,584 | ) | (7,205 | ) | ||||||||
Net increase (decrease) in net assets resulting from operations | (981 | ) | 6,697 | (34,793 | ) | |||||||||
Distributions to shareholders | ||||||||||||||
Class N | — | (149 | ) | (79 | ) | |||||||||
Class I | (35 | ) | (1,803 | ) | (2,289 | ) | ||||||||
Class R6 | (1,228 | ) | (2,923 | ) | (2,567 | ) | ||||||||
Total distributions | (1,263 | ) | (4,875 | ) | (4,935 | ) | ||||||||
Capital stock transactions | ||||||||||||||
Proceeds from sale of shares | 52,600 | 17,989 | 75,968 | |||||||||||
Shares issued in reinvestment of income dividends and capital gain distributions | 1,275 | 4,799 | 4,686 | |||||||||||
Less cost of shares redeemed | (137 | ) | (189,529 | ) | (438,011 | ) | ||||||||
Net increase (decrease) in net assets resulting from capital share transactions | 53,738 | (166,741 | ) | (357,357 | ) | |||||||||
Increase (decrease) in net assets | 51,494 | (164,919 | ) | (397,085 | ) | |||||||||
Net assets | ||||||||||||||
Beginning of period | — | 353,715 | 750,800 | |||||||||||
End of period | $ | 51,494 | $ | 188,796 | $ | 353,715 |
(a) | For the period from May 25, 2021 (Commencement of Operations) to December 31, 2021. |
See accompanying Notes to Financial Statements.
December 31, 2021 | William Blair Funds | 127 |
(1) Organization
(a) Description of the Trust
William Blair Funds (the “Trust”) is a Delaware statutory trust registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as an open-end management investment company. As of the date of this report, the Trust has the following twenty-one funds (the “Funds”) available for sale, each with its own investment objective and policies. For each Fund, the number of shares authorized is unlimited.
U.S. Equity Funds Growth Large Cap Growth Mid Cap Growth Small-Mid Cap Core Small-Mid Cap Growth Small Cap Growth Small Cap Value | Global Equity Fund Global Leaders International Equity Funds International Leaders International Growth Institutional International Growth International Small Cap Growth Emerging Markets Leaders Emerging Markets Growth Emerging Markets Small Cap Growth China Growth | Fixed Income Funds Bond Short Duration Bond Ultra-Short Duration Bond
Emerging Markets Debt Fund Emerging Markets Debt
Multi-Asset and Alternative Fund Macro Allocation |
On October 27, 2021, the Board of Trustees approved a change in the Small Cap Value Fund’s fiscal year end from October 31 to December 31. As a result, with respect to the Small Cap Value Fund, this report covers the results of operations for the period from November 1, 2021 to December 31, 2021.
William Blair Investment Management, LLC (the “Adviser”) serves as the Trust’s investment adviser. William Blair & Company, L.L.C. (“WBC” or the “Distributor”), an affiliate of the Adviser, serves as the Trust’s principal underwriter and distributor.
(b) Reorganization of Small Cap Value Fund
In connection with the Adviser’s acquisition of Investment Counselors of Maryland, LLC (“ICM”), the Board of Trustees of the Trust and the Board of Trustees of The Advisors’ Inner Circle Fund (“AIC”) approved a reorganization of the ICM Small Company Portfolio (“Predecessor Fund”), a series of AIC advised by ICM, into the Small Cap Value Fund (“SCV Fund”) (the “Reorganization”), pursuant to which the SCV Fund acquired all assets and assumed all liabilities of the Predecessor Fund in exchange for Class I shares of the SCV Fund. The tax-free reorganization occurred on July 16, 2021. The SCV Fund is the surviving entity for legal and tax purposes and has maintained a tax year end of December 31. The Predecessor Fund is the accounting survivor for financial reporting purposes. As a result, the statement of changes in net assets and Class I financial highlights for the periods prior to the merger date reflect the operations of the Predecessor Fund. The performance and accounting history for Class N and Class R6 shares of the reorganized SCV Fund began effective July 17, 2021. Effective July 17, 2021, the reorganized SCV Fund is managed by William V. Heaphy, CFA, and Gary J. Merwitz, former employees of ICM, who are now employees of the Adviser.
The following is a summary of shares outstanding, net assets, net asset value per share and unrealized appreciation (depreciation) immediately before and after the tax-free reorganization (dollar amounts are in thousands):
Before Reorganization | After Reorganization | |||||||||||
Small Cap Value Fund | ICM Small Company Portfolio | Small Cap Value Fund | ||||||||||
Class N | ||||||||||||
Shares outstanding | 317,775 | (a) | N/A | 317,775 | ||||||||
Net assets | $ | 10,216 | N/A | $ | 10,216 | |||||||
Net asset value | $ | 32.15 | (a) | N/A | $ | 32.15 | ||||||
Class I / Institutional Class | ||||||||||||
Shares outstanding | 760,891 | (b) | 59,609,442 | 60,370,333 | ||||||||
Net assets | $ | 24,461 | $ | 1,916,342 | $ | 1,940,803 | ||||||
Net asset value | $ | 32.15 | (b) | $ | 32.15 | $ | 32.15 |
128 | Annual Report | December 31, 2021 |
Notes to Financial Statements
Before Reorganization | After Reorganization | |||||||||||
Small Cap Value Fund | ICM Small Company Portfolio | Small Cap Value Fund | ||||||||||
Class R6 | ||||||||||||
Shares outstanding | 343,951 | (c) | N/A | 343,951 | ||||||||
Net assets | $ | 11,057 | N/A | $ | 11,057 | |||||||
Net asset value | $ | 32.15 | (c) | N/A | $ | 32.15 | ||||||
Total | ||||||||||||
Net assets | $ | 45,734 | $ | 1,916,342 | $ | 1,962,076 | ||||||
Cost of long-term investments | $ | 46,200 | $ | 1,499,746 | $ | 1,545,946 | ||||||
Unrealized appreciation (depreciation) | $ | (834 | ) | $ | 398,015 | $ | 397,181 |
(a) | Reflects a 0.454985-for-1 stock split which occurred immediately prior to the reorganization on July 16, 2021. |
(b) | Reflects a 0.474218-for-1 stock split which occurred immediately prior to the reorganization on July 16, 2021. |
(c) | Reflects a 0.473845-for-1 stock split which occurred immediately prior to the reorganization on July 16, 2021. |
Assuming the reorganization had been completed on November 1, 2020, the SCV Fund’s results of operations for the year ended October 31, 2021 would have been as follows (in thousands):
Net investment income | $ | 10,239 | ||
Net realized and unrealized gain (loss) on investments | 706,989 | |||
Net increase in net assets resulting from operations | $ | 717,228 |
Because the combined investment portfolios have been managed as a single portfolio since the reorganization was completed, it is not practical to separate the amounts of revenue and earnings to the SCV Fund that have been included in its Statement of Operations since the reorganization.
For financial reporting purposes, assets received and shares issued by the SCV Fund were recorded at fair value; however, the cost basis of the investments from the Predecessor Fund was carried forward to align ongoing reporting of the SCV Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes.
(c) Share Classes
Each Fund is comprised of Class N, Class I and Class R6 shares, except the Small-Mid Cap Core, China Growth and Emerging Markets Debt Funds, which are comprised of Class I and Class R6 shares, and Institutional International Growth Fund, which does not offer multiple classes of shares.
Class N shares are available to the general public, either directly through the Trust’s distributor or through a select number of financial intermediaries. Class N shares are sold without any sales load and carry an annual 12b-1 distribution fee at a fixed rate (0.25% for the U.S. Equity, Global Equity, International Equity and Multi-Asset and Alternative Funds and 0.15% for the Fixed Income Funds as discussed in Note 4(b) – Transactions with Affiliates – Underwriting Distribution Services and Shareholder Administration Agreements) and a sub-transfer agent fee that is not a fixed rate and varies by Fund and class, as discussed below.
Class I shares are available to certain retirement and deferred compensation plans, clients of certain financial intermediaries, and asset-based fee advisory clients of William Blair. The minimum initial investment for a Class I account is $500,000, subject to certain exceptions. Class I shares do not carry any sales load or distribution fees and generally have lower ongoing expenses than Class N shares. Class I shares have a sub-transfer agent fee that is not a fixed rate and varies by Fund and class, as discussed below.
Class R6 shares are available to certain retirement and deferred compensation plans, clients of certain financial intermediaries, asset-based fee advisory clients of William Blair, and additional types of investors, provided that neither the investor nor the financial intermediary requires the Funds to make any type of servicing or administrative payment. The minimum initial investment for a Class R6 account is $1 million, subject to certain exceptions.
December 31, 2021 | William Blair Funds | 129 |
Notes to Financial Statements
Shares of the Institutional International Growth Fund require a minimum initial investment of $5 million, subject to certain exceptions.
Class R6 shares and the Institutional International Growth Fund do not carry any sales load, distribution fees or sub-transfer agent fees. Class R6 shares of a Fund generally have lower ongoing expenses than the Fund’s Class N and Class I shares.
Sub-transfer agent fees: For Class N and Class I shares, the Funds may reimburse WBC for fees paid to intermediaries such as banks, broker-dealers, financial advisers or other financial institutions for sub-administration, sub-transfer agency and other services provided to investors whose shares of record are held in omnibus, other group accounts, retirement plans or accounts traded through registered securities clearing agents. These fees may vary based on, for example, the nature of services provided, but generally range up to 0.15% of the assets of the class serviced or maintained by the intermediary or up to $15 per sub-account maintained by the intermediary, depending on the method by which the intermediary charges for the services.
(d) Fund Objectives
The investment objectives of the Funds are as follows:
U.S. Equity Funds | Long-term capital appreciation. | |
Global Equity Fund | Long-term capital appreciation. | |
International Equity Funds | Long-term capital appreciation. | |
Bond Fund | Outperform the Bloomberg U.S. Aggregate Index by maximizing total return through a combination of income and capital appreciation. | |
Short Duration Bond Fund | High level of current income with relative stability of principal. | |
Ultra-Short Duration Bond Fund | Maximize total return. Total return includes both income and capital appreciation. | |
Emerging Markets Debt Fund | Provide attractive risk-adjusted returns relative to the Fund’s benchmark through investments in hard currency denominated debt issued in emerging market countries. | |
Macro Allocation Fund | Maximize long-term risk-adjusted total return. |
(2) Significant Accounting Policies
The following is a summary of the Trust’s significant accounting policies in effect during the periods covered by the financial statements, which are in accordance with U.S. generally accepted accounting principles (“US GAAP”), which includes the accounting and reporting guidelines under Accounting Standards Topic 946, Financial Services—Investment Companies.
(a) Investment income and transactions
Investment income, realized and unrealized gains and losses, and certain Fund level expenses and expense reductions, if any, are allocated based on the relative net assets of each class, except for certain class-specific expenses, which are charged directly to the appropriate class. Differences in class expenses may result in the payment of different per share dividends by class. All share classes of the Funds have equal rights with respect to voting, subject to class specific arrangements.
Dividend income and expenses are recorded on the ex-dividend date, except for those dividends from certain foreign securities that are recorded when the information is available.
Interest income is recorded on an accrual basis, adjusted for amortization of premium or accretion of discount. Variable rate bonds and floating rate notes earn interest at coupon rates that fluctuate at specific time intervals. The interest rates shown in the Portfolio of Investments for the Bond, Short Duration Bond, Ultra-Short Duration Bond, Emerging Markets Debt and Macro Allocation Funds were the rates in effect on December 31, 2021. Put bonds may be redeemed at the discretion of the holder on specified dates prior to maturity.
Premiums and discounts are amortized and accreted, respectively, on a straight-line basis for short-term investments and on an effective interest method for long-term investments.
Paydown gains and losses on mortgage-backed and asset-backed securities are treated as an adjustment to interest income. For the year ended December 31, 2021, the Bond, Short Duration Bond and Ultra-Short Duration Bond Funds recognized a reduction
130 | Annual Report | December 31, 2021 |
Notes to Financial Statements
of interest income and a corresponding increase in net realized gain of $3,719, $682 and $2,260, respectively (in thousands). This reclassification had no effect on the net increase (decrease) in net assets resulting from operations, net asset value or the net assets of the Funds.
The Funds do not isolate the portion of operations resulting from fluctuations in foreign currency exchange rates on investments from the fluctuations arising from changes in the value of securities held. Such currency fluctuations are included with the net realized and unrealized gain or loss from investments.
Reported net realized foreign currency gains or losses arise from disposition of foreign currency, the difference in the foreign exchange rates between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the ex-date or accrual date and the U.S. dollar equivalent of the amounts actually received or paid. Net unrealized foreign exchange gains and losses arise from changes (due to the changes in the exchange rate) in the value of foreign currency and other assets and liabilities denominated in foreign currencies held at period end.
For financial reporting purposes, security and shareholder transactions are recorded on trade date in accordance with US GAAP. Realized gains and losses from securities transactions are recognized on a specifically identified cost basis.
Awards from class action litigation may be recorded as a reduction of cost. If the Funds no longer own the applicable securities, the proceeds are recorded as realized gains.
(b) Share Valuation and Distributions to Shareholders
Shares are sold and redeemed on a continuous basis at net asset value. The net asset value per share is determined separately for each class by dividing the Fund’s net assets attributable to that class by the number of shares of the class outstanding as of the close of regular trading on the New York Stock Exchange (the “NYSE”), which is generally 4:00 p.m. Eastern time, on each day the NYSE is open.
Distributions from net investment income, if any, for all Equity and Multi-Asset and Alternative Funds are declared and paid at least annually. Distributions from net investment income for the Fixed Income Funds and Emerging Markets Debt Fund are declared daily and paid monthly. Capital gain distributions, if any, for all Funds, are declared and paid at least annually in December and/or January. Distributions payable to shareholders are recorded on the ex-dividend date.
For the period from November 1, 2020 to July 16, 2021, the Predecessor Fund distributed its net investment income quarterly, and distributed its net realized gains at least annually. In connection with the Reorganization, the Predecessor Fund also distributed all of its net realized gains on July 13, 2021. Effective July 17, 2021, the Small Cap Value Fund pays distributions in accordance with the aforementioned policy.
(c) Foreign Currency Translation
The Funds may invest in securities denominated in foreign currencies. As such, assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the current exchange rate on the date of valuation. The values of foreign investments, open forward foreign currency contracts, and cash denominated in foreign currencies are translated into U.S. dollars using a spot market rate of exchange as of the time of the determination of each Fund’s net asset value, typically 4:00 p.m. Eastern time on days when there is regular trading on the NYSE. Payables and receivables for securities transactions, dividends, interest income and tax reclaims are translated into U.S. dollars using a spot market rate of exchange as of 4:00 p.m. Eastern time. Settlement of purchases and sales and dividend and interest receipts are translated into U.S. dollars using a spot market rate of exchange as of 11:00 a.m. Eastern time.
(d) Investment in REITs
With respect to the Funds, dividend income is recorded based on the income included in distributions received from the REIT investments using published REIT reclassifications including some management estimates when actual amounts are not available. Distributions received in excess of this estimated amount are recorded as a reduction of the cost of investments or reclassified to capital gains. The actual amounts of income, return of capital, and capital gains are only determined by each REIT after its fiscal year-end, and may differ from the estimated amounts.
December 31, 2021 | William Blair Funds | 131 |
Notes to Financial Statements
(e) Master Limited Partnerships
The Funds may invest in master limited partnerships (“MLP”). MLPs are limited partnerships or limited liability companies, whose partnership units or limited liability interests are listed and traded on a U.S. securities exchange, and are treated as publicly traded partnerships for federal income tax purposes. To qualify to be treated as a partnership for tax purposes, an MLP must receive at least 90% of its income from qualifying sources as set forth in Section 7704(d) of the Internal Revenue Code of 1986, as amended (the “Code”). These qualifying sources include activities such as the exploration, development, mining, production, processing, refining, transportation, storage and marketing of mineral or natural resources. MLPs generally have two classes of owners, the general partner and limited partners. MLPs that are formed as limited liability companies generally have two analogous classes of owners, the managing member and the members. For purposes of this section, references to general partners also apply to managing members and references to limited partners also apply to members. The general partner is typically owned by a major energy company, an investment fund, the direct management of the MLP or is an entity owned by one or more of such parties. The general partner may be structured as a private or publicly traded corporation or other entity. The general partner typically controls the operations and management of the MLP through an equity interest of as much as 2% in the MLP plus, in many cases, ownership of common units and subordinated units. Limited partners own the remainder of the MLP through ownership of common units and have a limited role in the MLP’s operations and management.
(f) Income Taxes
Each Fund intends to comply with the provisions of Subchapter M of the Code, in order to qualify as regulated investment companies. Each Fund intends to make the requisite distributions of income and capital gains to its shareholders sufficient to relieve it from all, or substantially all, federal income and excise taxes. No provision for federal income and excise taxes has been made.
Certain Funds may be subject to foreign income taxes imposed on realized gains on securities of issuers from certain foreign countries. Such taxes, if applicable, are included within net realized gain (loss) on transactions from investments in securities in the Statement of Operations.
Management evaluates tax positions taken or expected to be taken in the course of preparing the Funds’ tax returns to determine whether it is “more likely than not” that each tax position would be sustained upon examination by a taxing authority based on the technical merits of the positions. Tax positions not deemed to meet the “more likely than not” threshold would be recorded as a tax benefit or expense in the current year. Management has evaluated all of the uncertain tax positions of the Funds and has determined that no liability is required to be recorded in the financial statements.
The statute of limitations on the Funds’ tax returns for the prior three years remains open and the returns are subject to examination.
Adjustments to the cost of investments for tax purposes may be due to the deferred loss associated with current and prior year wash sales, income recognition from investments in real estate investment trusts, and the Funds’ election to mark-to-market their investments in Passive Foreign Investment Companies (“PFICs”). The cost of investments, including derivatives, for federal income tax purposes and related gross unrealized appreciation (depreciation) and net unrealized appreciation/(depreciation) at December 31, 2021, were as follows (in thousands):
Fund | Cost of Investments | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation/ (Depreciation) | ||||||||||||
Growth | $ | 174,801 | $ | 171,313 | $ | 4,170 | $ | 167,143 | ||||||||
Large Cap Growth | 723,503 | 386,530 | 1,793 | 384,737 | ||||||||||||
Mid Cap Growth | 39,037 | 15,317 | 1,432 | 13,885 | ||||||||||||
Small-Mid Cap Core | 79,656 | 14,947 | 1,701 | 13,246 | ||||||||||||
Small-Mid Cap Growth | 2,281,953 | 859,965 | 92,499 | 767,466 | ||||||||||||
Small Cap Growth | 533,898 | 196,945 | 32,807 | 164,138 | ||||||||||||
Small Cap Value | 1,639,112 | 479,920 | 47,309 | 432,611 | ||||||||||||
Global Leaders | 75,853 | 68,235 | 253 | 67,982 | ||||||||||||
International Leaders | 889,495 | 450,088 | 31,857 | 418,231 | ||||||||||||
International Growth | 1,224,268 | 933,842 | 35,840 | 898,002 | ||||||||||||
Institutional International Growth | 744,900 | 560,504 | 21,885 | 538,619 |
132 | Annual Report | December 31, 2021 |
Notes to Financial Statements
Fund | Cost of Investments | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation/ (Depreciation) | ||||||||||||
International Small Cap Growth | 296,323 | 107,531 | 20,505 | 87,026 | ||||||||||||
Emerging Markets Leaders | 447,772 | 62,242 | 30,725 | 31,517 | ||||||||||||
Emerging Markets Growth | 751,588 | 313,606 | 19,108 | 294,498 | ||||||||||||
Emerging Markets Small Cap Growth | 414,856 | 115,628 | 27,164 | 88,464 | ||||||||||||
China Growth | 7,698 | 164 | 602 | (438 | ) | |||||||||||
Bond | 289,632 | 9,466 | 2,871 | 6,595 | ||||||||||||
Short Duration Bond | 38,862 | 6 | 182 | (176 | ) | |||||||||||
Ultra-Short Duration Bond | 105,766 | 229 | 654 | (425 | ) | |||||||||||
Emerging Markets Debt | 52,686 | 386 | 2,443 | (2,057 | ) | |||||||||||
Macro Allocation | 164,860 | 24,672 | 4,384 | 20,288 |
In addition, the Funds may periodically record reclassifications among certain capital accounts to reflect differences between financial reporting and income tax basis distributions. The reclassifications were reported in order to reflect the tax treatment for certain permanent differences that exist between income tax regulations and US GAAP. The reclassifications generally relate to the tax treatment of net operating losses, redemptions in-kind, and utilization of earnings and profits distributed to shareholders on redemption of shares. These reclassifications have no impact on the net asset values or the net assets of the Funds. Accordingly, at December 31, 2021, the following reclassifications were recorded (in thousands):
Fund | Paid in Capital | Total Distributable Earnings (Loss) | ||||||
Growth | $ | 2,606 | $ | (2,606 | ) | |||
Large Cap Growth | 5,950 | (5,950 | ) | |||||
Mid Cap Growth | 8,551 | (8,551 | ) | |||||
Small-Mid Cap Core | (127 | ) | 127 | |||||
Small-Mid Cap Growth | 447,594 | (447,594 | ) | |||||
Small Cap Growth | 13,574 | (13,574 | ) | |||||
Small Cap Value | 2,946 | (2,946 | ) | |||||
Global Leaders | 434 | (434 | ) | |||||
International Leaders | 5,952 | (5,952 | ) | |||||
International Growth | 40,570 | (40,570 | ) | |||||
Institutional International Growth | 18,405 | (18,405 | ) | |||||
International Small Cap Growth | 3,603 | (3,603 | ) | |||||
Emerging Markets Leaders | 4,912 | (4,912 | ) | |||||
Emerging Markets Growth | 40,507 | (40,507 | ) | |||||
Emerging Markets Small Cap Growth | 1,714 | (1,714 | ) | |||||
China Growth | (14 | ) | 14 | |||||
Bond | 4 | (4 | ) | |||||
Short Duration Bond | (1 | ) | 1 | |||||
Ultra-Short Duration Bond | — | — | ||||||
Emerging Markets Debt | — | — | ||||||
Macro Allocation | (482 | ) | 482 |
The timing and characterization of certain income and capital gain distributions are determined annually in accordance with federal income tax regulations that may differ from US GAAP. As a result, net investment income or loss and net realized gain or loss for a reporting period may differ from the amount distributed during such period.
December 31, 2021 | William Blair Funds | 133 |
Notes to Financial Statements
Distributions from net realized gains for book purposes may include short-term capital gains, which are included as ordinary income for tax purposes. The tax character of distributions paid during 2021 and 2020 was as follows (in thousands):
Distributions Paid in 2021 | ||||||||||||||||||||||||
Ordinary Income | Long-Term Capital Gains | |||||||||||||||||||||||
Fund | Class N | Class I | Class R6 | Class N | Class I | Class R6 | ||||||||||||||||||
Growth | $ | 910 | $ | 5,989 | $ | 301 | $ | 3,857 | $ | 25,388 | $ | 1,275 | ||||||||||||
Large Cap Growth | 192 | 602 | 219 | 8,447 | 26,569 | 9,430 | ||||||||||||||||||
Mid Cap Growth | 93 | 714 | 10 | 150 | 1,163 | 17 | ||||||||||||||||||
Small-Mid Cap Core | N/A | — | — | N/A | — | — | ||||||||||||||||||
Small-Mid Cap Growth | 4,167 | 41,826 | 5,424 | 17,249 | 173,139 | 22,455 | ||||||||||||||||||
Small Cap Growth | 9,052 | 18,160 | 5,287 | 23,085 | 46,310 | 13,484 | ||||||||||||||||||
Small Cap Value (a) | 17 | 8,093 | 8,154 | 100 | 31,925 | 30,316 | ||||||||||||||||||
Global Leaders | 9 | 83 | 4 | 728 | 6,622 | 295 | ||||||||||||||||||
International Leaders | 2 | 1,050 | 1,464 | 1,208 | 15,187 | 17,182 | ||||||||||||||||||
International Growth | 3,311 | 19,023 | 1,452 | 28,295 | 162,566 | 12,413 | ||||||||||||||||||
Institutional International Growth | N/A | N/A | 19,074 | N/A | N/A | 162,320 | ||||||||||||||||||
International Small Cap Growth | 46 | 2,186 | 3,804 | 458 | 18,573 | 30,461 | ||||||||||||||||||
Emerging Markets Leaders | 1 | 204 | 2,279 | 113 | 3,043 | 30,113 | ||||||||||||||||||
Emerging Markets Growth | 4 | 21 | 830 | 5,476 | 30,419 | 143,523 | ||||||||||||||||||
Emerging Markets Small Cap Growth | — | — | — | 333 | 13,825 | 26,855 | ||||||||||||||||||
China Growth | N/A | — | — | N/A | — | — | ||||||||||||||||||
Bond | 1,001 | 6,706 | 1,464 | — | — | — | ||||||||||||||||||
Short Duration Bond | 293 | 621 | 3 | — | — | — | ||||||||||||||||||
Ultra-Short Duration Bond | 289 | 2,083 | 566 | — | — | — | ||||||||||||||||||
Emerging Markets Debt | N/A | 35 | 1,228 | N/A | — | — | ||||||||||||||||||
Macro Allocation | 149 | 1,803 | 2,923 | — | — | — | ||||||||||||||||||
Distributions Paid in 2020 | ||||||||||||||||||||||||
Ordinary Income | Long-Term Capital Gains | |||||||||||||||||||||||
Fund | Class N | Class I | Institutional/ Class R6 | Class N | Class I | Institutional/ Class R6 | ||||||||||||||||||
Growth | $ | 15 | $ | 89 | $ | 4 | $ | 4,754 | $ | 27,658 | $ | 1,328 | ||||||||||||
Large Cap Growth | 258 | 1,349 | 612 | 4,929 | 13,332 | 5,400 | ||||||||||||||||||
Mid Cap Growth | 86 | 967 | 8 | 380 | 4,282 | 34 | ||||||||||||||||||
Small-Mid Cap Core | N/A | — | — | N/A | — | — | ||||||||||||||||||
Small-Mid Cap Growth | — | — | — | 5,612 | 51,667 | 1,737 | ||||||||||||||||||
Small Cap Growth | 4,713 | 8,926 | 2,409 | 13,769 | 26,080 | 7,039 | ||||||||||||||||||
Small Cap Value | N/A | 76,786 | (b) | N/A | N/A | 107,687 | (b) | N/A | ||||||||||||||||
Global Leaders | — | 25 | 2 | 1,323 | 12,188 | 321 | ||||||||||||||||||
International Leaders | — | 178 | 558 | 140 | 2,678 | 5,216 | ||||||||||||||||||
International Growth | 431 | 8,798 | 572 | 1,919 | 12,455 | 701 | ||||||||||||||||||
Institutional International Growth | N/A | N/A | 962 | N/A | N/A | 150,391 | ||||||||||||||||||
International Small Cap Growth | — | 55 | 253 | 63 | 2,953 | 3,813 | ||||||||||||||||||
Emerging Markets Leaders | — | 105 | 456 | 15 | 516 | 1,837 | ||||||||||||||||||
Emerging Markets Growth | — | 61 | 1,303 | 531 | 4,382 | 41,051 | ||||||||||||||||||
Emerging Markets Small Cap Growth | — | 65 | 129 | — | — | — | ||||||||||||||||||
Bond | 1,089 | 7,496 | 1,641 | — | — | — | ||||||||||||||||||
Short Duration Bond | 546 | 1,009 | 2 | — | — | — | ||||||||||||||||||
Ultra-Short Duration Bond | 189 | 1,833 | 1,168 | — | — | — | ||||||||||||||||||
Macro Allocation | 79 | 2,289 | 2,567 | — | — | — |
(a) | For the period from November 1, 2021 to December 31, 2021. |
(b) | For the year ended October 31, 2021. For the year ended October 31, 2020, the tax character of distributions paid was $4,004 and $37,310 of ordinary income and long-term capital gains, respectively. |
134 | Annual Report | December 31, 2021 |
Notes to Financial Statements
As of December 31, 2021, the components of distributable earnings on a tax basis were as follows (in thousands):
Fund | Undistributed Ordinary Income | Accumulated Capital and Other Losses | Undistributed Long-Term Capital Gains | Net Unrealized Appreciation/ (Depreciation) | Total | |||||||||||||||
Growth | $ | — | $ | (715 | ) | $ | 7,545 | $ | 167,143 | $ | 173,973 | |||||||||
Large Cap Growth | — | (1,904 | ) | 8,904 | 384,737 | 391,737 | ||||||||||||||
Mid Cap Growth | 775 | — | 11,799 | 13,885 | 26,459 | |||||||||||||||
Small-Mid Cap Core | — | (6,340 | ) | — | 13,246 | 6,906 | ||||||||||||||
Small-Mid Cap Growth | — | (1,783 | ) | 80,613 | 767,466 | 846,296 | ||||||||||||||
Small Cap Growth | — | (3,077 | ) | 20,816 | 164,138 | 181,877 | ||||||||||||||
Small Cap Value | 8,235 | — | 52,288 | 432,611 | 493,134 | |||||||||||||||
Global Leaders | 4 | — | 1,814 | 67,982 | 69,800 | |||||||||||||||
International Leaders | — | (1,890 | ) | 1,828 | 416,828 | 416,766 | ||||||||||||||
International Growth | — | (6,800 | ) | 108,482 | 895,965 | 997,647 | ||||||||||||||
Institutional International Growth | — | (3,248 | ) | 7,522 | 537,448 | 541,722 | ||||||||||||||
International Small Cap Growth | — | (2,130 | ) | — | 87,025 | 84,895 | ||||||||||||||
Emerging Markets Leaders | — | (703 | ) | 3,410 | 28,998 | 31,705 | ||||||||||||||
Emerging Markets Growth | — | (1,382 | ) | 1,017 | 286,943 | 286,578 | ||||||||||||||
Emerging Markets Small Cap Growth | — | (967 | ) | 16,732 | 82,789 | 98,554 | ||||||||||||||
China Growth | — | (33 | ) | — | (438 | ) | (471 | ) | ||||||||||||
Bond | — | (18,223 | ) | — | 6,595 | (11,628 | ) | |||||||||||||
Short Duration Bond | 174 | (6,901 | ) | — | (176 | ) | (6,903 | ) | ||||||||||||
Ultra-Short Duration Bond | 21 | (31,745 | ) | — | (425 | ) | (32,149 | ) | ||||||||||||
Emerging Markets Debt | 63 | (248 | ) | — | (2,059 | ) | (2,244 | ) | ||||||||||||
Macro Allocation | — | (199,306 | ) | — | 20,241 | (179,065 | ) |
As of December 31, 2021, the Funds may have unused capital loss carryforwards available for federal income tax purposes to be applied against future capital gains, if any. Under current law, the Funds may carry forward net capital losses indefinitely to use to offset capital gains realized in future years. The following table details the Funds’ available capital loss carryforwards as of December 31, 2021, and the capital loss carryforwards utilized by the Funds in 2021 (in thousands):
Capital Loss | ||||||||||||||||
Available Capital Loss Carryforwards | Carryforwards | |||||||||||||||
Fund | Short Term | Long Term | Total | Utilized in 2021 | ||||||||||||
Small-Mid Cap Core | $ | 6,340 | $ | — | $ | 6,340 | $ | 6,466 | ||||||||
China Growth | 28 | — | 28 | — | ||||||||||||
Bond | 10,865 | 7,041 | 17,906 | 1,898 | ||||||||||||
Short Duration Bond | 2,762 | 4,139 | 6,901 | 9 | ||||||||||||
Ultra-Short Duration Bond | 14,426 | 17,319 | 31,745 | — | ||||||||||||
Emerging Markets Debt | 248 | — | 248 | — | ||||||||||||
Macro Allocation | 196,808 | — | 196,808 | 39,838 |
In order to meet certain excise tax distribution requirements, the Funds are required to measure and distribute annually, net capital gains realized during a twelve month period ending October 31 and net investment income earned during a twelve month period ending December 31. In connection with this, the Funds are permitted for tax purposes to defer into their next fiscal year qualified late year losses. Qualified late year capital losses are any short term or long term capital losses incurred between November 1 and the end of their fiscal year, December 31, 2021. Qualified late year ordinary losses are comprised of losses related to swaps, foreign currency and PFICs incurred between November 1 and the end of their fiscal year, December 31, 2021.
As of December 31, 2021, the following Funds deferred, on a tax basis, qualified late year losses of (in thousands):
Qualified Late Year Losses | ||||||||
Fund | Ordinary Income | Net Capital | ||||||
Growth | $ | — | $ | 715 | ||||
Large Cap Growth | — | 1,904 | ||||||
Small-Mid Cap Growth | — | 1,783 |
December 31, 2021 | William Blair Funds | 135 |
Notes to Financial Statements
Qualified Late Year Losses | ||||||||
Fund | Ordinary Income | Net Capital | ||||||
Small Cap Growth | — | 3,077 | ||||||
International Leaders | 1,890 | — | ||||||
International Growth | — | 6,800 | ||||||
Institutional International Growth | — | 3,248 | ||||||
International Small Cap Growth | 47 | 2,083 | ||||||
Emerging Markets Leaders | 703 | — | ||||||
Emerging Markets Growth | 1,382 | — | ||||||
Emerging Markets Small Cap Growth | 967 | — | ||||||
China Growth | 5 | — | ||||||
Bond | 317 | — | ||||||
Macro Allocation | 2,498 | — |
(g) Repurchase Agreements
In a repurchase agreement, a Fund buys a security at one price and at the time of sale, the seller agrees to repurchase the security at a mutually agreed upon time and price (usually within seven days). The repurchase agreement thereby determines the yield during the purchaser’s holding period, while the seller’s obligation to repurchase is secured by the value of the underlying collateral. The Adviser monitors, on an ongoing basis, the value of the underlying collateral to ensure that the value always equals or exceeds the repurchase price plus accrued interest. Repurchase agreements may involve certain risks in the event of a default or insolvency of the other party to the agreement, including possible delays or restrictions upon a Fund’s ability to dispose of the underlying collateral. The risk to a Fund is limited to the ability of the seller to pay the agreed upon sum on the delivery date. In the event of default, a repurchase agreement provides that a Fund is entitled to sell the underlying collateral. The loss, if any, to a Fund will be the difference between the proceeds from the sale and the repurchase price. However, if bankruptcy proceedings are commenced with respect to the seller of the security, disposition of the collateral by the Fund may be delayed or limited. The Funds have master repurchase agreements which allow the Funds to offset amounts owed to a counterparty with amounts owed from the same counterparty, including any collateral, in the event the counterparty defaults. Each Fund’s outstanding repurchase agreements, if any, and related collateral, are shown on the Fund’s Portfolio of Investments. Although no definitive creditworthiness criteria are used, the Adviser reviews the creditworthiness of the banks and non-bank dealers with which a Fund enters into repurchase agreements to evaluate those risks. A Fund may, for tax purposes, deem repurchase agreements collateralized by U.S. Government securities to be investments in U.S. Government securities.
(h) TBA Securities
The Fixed Income Funds may invest in mortgage pass-through securities eligible to be sold in the “to-be announced” market (“TBAs”). TBAs provide for the forward or delayed delivery of the underlying instrument with settlement in up to 180 days. The term TBA comes from the fact that the specific mortgage-backed security that will be delivered to fulfill a TBA trade is not designated at the time the trade is made, but rather is generally announced 48 hours before the settlement date. A Fund generally has the ability to close out a TBA obligation on or before the settlement date, rather than take delivery of the security. When a Fund sells TBAs, it incurs risks similar to those incurred in short sales. For example, when a Fund sells TBAs without owning or having the right to obtain the deliverable securities it incurs a risk of loss because it could have to purchase the securities at a price that is higher than the price at which it sold the securities.
(i) Securities Sold, Not Yet Purchased
A Fund may sell a security it does not own (known as selling a security short) in anticipation of a decline in the fair value of that security. When a Fund sells a security short, it must borrow the security sold short and deliver it to the broker through which it made the short sale. A gain, limited to the price at which the fund sold the security short, or a loss, unlimited in size, will be recognized upon the termination of the short sale. A Fund is also subject to the risk that it may be unable to acquire a security to terminate a short position except at a price substantially in excess of the price at which it sold the security short.
(j) Use of Estimates
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements. Actual results may differ from those estimates.
136 | Annual Report | December 31, 2021 |
Notes to Financial Statements
(k) Indemnification
In the normal course of business, the Funds have entered into contracts in which the Funds agree to indemnify the other party or parties against various potential costs or liabilities. The Funds’ maximum exposure under these arrangements is unknown. No claim has been made for indemnification pursuant to any such agreement of the Funds.
(l) Redemption In-Kind
In accordance with the Trust’s prospectus, the Funds may distribute portfolio securities rather than cash as payment for a redemption of Fund shares (in-kind redemption). For financial reporting purposes, the Fund recognizes a gain or loss on the transfer of securities depending on the value of those securities on the date of redemption. Gains and losses realized on in-kind redemptions may not be recognized for tax purposes and are reclassified from accumulated net realized gain (loss) to capital paid in excess of par value. During the year ended December 31, 2021, the Small-Mid Cap Growth Fund redeemed $439,582 (in thousands) of fund shares in-kind rather than with cash and recognized net realized gains of $169,211 (in thousands) on the securities distributed to shareholders.
(3) Valuation
(a) Investment Valuation
The value of U.S. equity securities, including exchange-traded funds, is determined by valuing securities traded on national securities markets or in the over-the-counter markets at the last sale price or, if applicable, the official closing price or, in the absence of a recent sale on the date of determination, at the mean between the last reported bid and ask prices.
The value of foreign equity securities is generally determined based upon the last sale price on the foreign exchange or market on which it is primarily traded and in the currency of that market as of the close of the appropriate exchange or, if there have been no sales during that day, at the mean between the last reported bid and ask prices. The Board of Trustees has determined that the passage of time between when the foreign exchanges or markets close and when the Funds compute their net asset values could cause the value of foreign equity securities to no longer be representative or accurate and, as a result, may necessitate that such securities be fair valued. Accordingly, for foreign equity securities, the Funds may use an independent pricing service to fair value price the security as of the close of regular trading on the NYSE. As a result, a Fund’s value for a foreign security may be different from the last sale price (or the mean between the last reported bid and ask prices). As of December 31, 2021, fair valuation estimates for foreign equity securities were not obtained.
Fixed income securities are generally valued using evaluated prices provided by an independent pricing service. The evaluated prices are formed using various market inputs that the pricing service believes accurately represent the market value of a security at a particular point in time. The pricing service determines evaluated prices for fixed income securities using inputs including, but not limited to, recent transaction prices for such securities, dealer quotes, transaction prices for other securities with similar characteristics, collateral characteristics, credit quality, payment history, liquidity and market conditions.
Repurchase agreements are valued at cost, which approximates fair value.
Option contracts on securities, currencies and other financial instruments traded on one or more exchanges are valued at their most recent sale price on the exchange on which they are traded most extensively. Option contracts on foreign indices are valued at the settlement price. If there were no sales that day or if no settlement price is available, such option contracts are valued at the mean between the last reported bid and ask prices. Option contracts traded in the Over-the-Counter (“OTC”) market shall be valued by an independent pricing service. Futures contracts are valued at the most recent settlement price on the exchange on which they are traded most extensively, or if no settlement price is available, at the last sale price as of the close of the exchange. Forward foreign currency contracts are valued on the basis of the value of the underlying currencies at the prevailing currency exchange rate as supplied by an independent pricing service.
Swaps that are centrally cleared through an exchange are valued at the most recent settlement price provided by the exchange on which they are cleared. Total return swaps on equities, equity baskets, indices and other financial instruments are valued by an independent pricing service, or if unavailable, based on the security’s or instrument’s underlying reference asset. All other swap contracts are valued by an independent pricing service. Depending on the product and the terms of the transaction, the independent pricing service may use a series of techniques, including simulation pricing models. The pricing models use inputs that are observed from actively quoted markets such as issuer details, indices, spreads, interest rates, yield curves, dividends and exchange rates.
Securities, and other assets, for which a market price is not available or is deemed unreliable (e.g., securities affected by unusual or extraordinary events, such as natural disasters or securities affected by market or economic events, such as bankruptcy filings),
December 31, 2021 | William Blair Funds | 137 |
Notes to Financial Statements
or the value of which is affected by a significant valuation event, are valued at a fair value as determined in good faith by, or under the direction of, the Board of Trustees and in accordance with the Valuation Procedures approved by the Board of Trustees. The value of these fair valued securities may be different from the last sale price (or the mean between the last reported bid and ask prices), and there is no guarantee that a fair valued security will be sold at the price at which a Fund is carrying the security.
(b) Fair Value Measurements
Fair value is defined as the price that a Fund would receive upon selling a security in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. Various inputs are used in determining the value of a Fund’s investments. A three-tier hierarchy of inputs is used to classify fair value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in the three broad levels listed below:
• | Level 1—Quoted prices (unadjusted) in active markets for an identical security. | |
• | Level 2—Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants would use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, and others. In addition, other observable inputs such as foreign exchange rates, benchmark securities indices and foreign futures contracts may be utilized in the valuation of certain foreign securities when significant events occur between the last sale on the foreign securities exchange and the time at which the net asset value of the Fund is calculated. | |
• | Level 3—Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in pricing an investment, and are based on the best information available. |
The inputs or methodology used for valuing an investment are not necessarily an indication of the risk associated with investing in those securities.
A description of the valuation methodologies applied to the Funds’ major categories of assets and liabilities measured at fair value on a recurring basis is as follows:
Exchange-Traded Securities
Securities traded on a national securities exchange (or reported on the NASDAQ national market), including exchange-traded funds, are stated at the last reported sales price on the day of valuation. Other securities traded in the over-the-counter market and listed securities for which no sale was reported on that date are stated at the mean between the last reported bid and ask prices. To the extent these securities are actively traded and valuation adjustments are not applied, they are categorized as Level 1 of the fair value hierarchy. Securities traded on inactive markets or valued by reference to similar instruments are generally categorized as Level 2 of the fair value hierarchy.
Fixed Income Securities
Fixed income securities including corporate, convertible and municipal bonds and notes, U.S. government agency obligations, U.S. treasury obligations, sovereign issues, bank loans, convertible preferred securities, asset-backed securities, non-U.S. bonds and commercial paper are generally valued using evaluated prices provided by an independent pricing service. The evaluated prices are formed using various market inputs that the pricing service believes accurately represent the fair value of a security at a particular point in time. The pricing service determines evaluated prices for fixed income securities using inputs including, but not limited to, recent transaction prices for such securities, dealer quotes, transaction prices for other securities with similar characteristics, collateral characteristics, credit quality, payment history, liquidity and market conditions. Securities that use similar valuation techniques and observable inputs as described above are categorized as Level 2 of the fair value hierarchy.
Repurchase Agreements
Repurchase agreements are valued at cost, which approximates fair value. Repurchase agreements are categorized as Level 2 of the fair value hierarchy.
Derivative Instruments
Listed derivatives, such as certain options and futures contracts, that are actively traded are valued based on quoted prices from the exchange on which they are traded most extensively and are categorized as Level 1 of the fair value hierarchy. OTC derivative
138 | Annual Report | December 31, 2021 |
Notes to Financial Statements
contracts include forward foreign currency contracts, swap and certain option contracts related to interest rates, foreign currencies, the credit standing of reference entities, equity prices, or commodity prices. Depending on the product and the terms of the transaction, the fair value of OTC derivative products can be modeled by independent pricing services taking into account the counterparties’ creditworthiness and using a series of techniques, including simulation models. Many pricing models do not entail material subjectivity because the methodologies employed do not necessitate significant judgments and the pricing inputs are observed from actively quoted markets, as is the case of forward foreign currency contracts and interest rate swaps. A substantial majority of OTC derivative products valued by a Fund using pricing models fall into this category and are categorized as Level 2 of the fair value hierarchy.
As of December 31, 2021, the value of investments in securities and other financial instruments, segregated by their hierarchical input levels used in determining fair value and by security class or other financial instruments, are shown below (in thousands).
Large Cap | Mid Cap | Small-Mid | ||||||||||||||||||
Investments in securities | Growth | Growth | Growth | Cap Core | ||||||||||||||||
Level 1—Quoted prices | ||||||||||||||||||||
Common Stocks | $ | 339,635 | $ | 1,099,665 | $ | 51,690 | $ | 90,828 | ||||||||||||
Level 2—Other significant observable inputs | ||||||||||||||||||||
Repurchase Agreements | 2,309 | 8,575 | 1,232 | 2,074 | ||||||||||||||||
Level 3—Significant unobservable inputs | ||||||||||||||||||||
None | — | — | — | — | ||||||||||||||||
Total investments in securities | $ | 341,944 | $ | 1,108,240 | $ | 52,922 | $ | 92,902 | ||||||||||||
Small-Mid | Small Cap | Small Cap | Global | |||||||||||||||||
Investments in securities | Cap Growth | Growth | Value | Leaders | ||||||||||||||||
Level 1—Quoted prices | ||||||||||||||||||||
Common Stocks | $ | 2,967,878 | $ | 695,733 | $ | 2,037,228 | $ | 140,141 | ||||||||||||
Level 2—Other significant observable inputs | ||||||||||||||||||||
Repurchase Agreements | 81,541 | 2,303 | 34,495 | 3,694 | ||||||||||||||||
Level 3—Significant unobservable inputs | ||||||||||||||||||||
None | — | — | — | — | ||||||||||||||||
Total investments in securities | $ | 3,049,419 | $ | 698,036 | $ | 2,071,723 | $ | 143,835 | ||||||||||||
Institutional | International | |||||||||||||||||||
International | International | International | Small Cap | |||||||||||||||||
Investments in securities | Leaders | Growth | Growth | Growth | ||||||||||||||||
Level 1—Quoted prices | ||||||||||||||||||||
Common Stocks | $ | 1,286,443 | $ | 2,072,206 | $ | 1,252,660 | $ | 377,232 | ||||||||||||
Level 2—Other significant observable inputs | ||||||||||||||||||||
Common Stocks | — | 2,279 | 1,389 | — | ||||||||||||||||
Repurchase Agreements | 21,283 | 47,785 | 29,470 | 6,117 | ||||||||||||||||
Level 3—Significant unobservable inputs | ||||||||||||||||||||
None | — | — | — | — | ||||||||||||||||
Total investments in securities | $ | 1,307,726 | $ | 2,122,270 | $ | 1,283,519 | $ | 383,349 | ||||||||||||
Emerging | ||||||||||||||||||||
Emerging | Emerging | Markets | ||||||||||||||||||
Markets | Markets | Small Cap | China | |||||||||||||||||
Investments in securities | Leaders | Growth | Growth | Growth | ||||||||||||||||
Level 1—Quoted prices | ||||||||||||||||||||
Common Stocks | $ | 468,236 | $ | 1,029,576 | $ | 488,297 | $ | 7,144 | ||||||||||||
Level 2—Other significant observable inputs | ||||||||||||||||||||
Common Stocks | — | 3,383 | 12,680 | — | ||||||||||||||||
Repurchase Agreements | 11,053 | 13,127 | 2,343 | 116 | ||||||||||||||||
Level 3—Significant unobservable inputs | ||||||||||||||||||||
None | — | — | — | — | ||||||||||||||||
Total investments in securities | $ | 479,289 | $ | 1,046,086 | $ | 503,320 | $ | 7,260 |
December 31, 2021 | William Blair Funds | 139 |
Notes to Financial Statements
Short | Ultra-Short | Emerging | ||||||||||||||||||
Duration | Duration | Markets | Macro | |||||||||||||||||
Investments in securities | Bond | Bond | Bond | Debt | Allocation | |||||||||||||||
Assets | ||||||||||||||||||||
Level 1—Quoted prices | ||||||||||||||||||||
Exchange-Traded Funds | $ | — | $ | — | $ | — | $ | — | $ | 136,195 | ||||||||||
Common Stocks | — | — | — | — | 6,717 | |||||||||||||||
Preferred Stocks | — | — | — | — | 424 | |||||||||||||||
Level 2—Other significant observable inputs | ||||||||||||||||||||
Asset-Backed Securities | 14,949 | 6,375 | 15,532 | — | — | |||||||||||||||
Commercial Mortgage-Backed Securities | 10,787 | 1,703 | 4,778 | — | — | |||||||||||||||
Commercial Paper | 2,360 | 500 | — | — | — | |||||||||||||||
Corporate Obligations | 162,970 | 16,646 | 41,628 | — | — | |||||||||||||||
Foreign Corporate Obligations | — | — | — | 15,836 | — | |||||||||||||||
Foreign Government Bonds | — | — | — | 31,669 | 23,755 | |||||||||||||||
Foreign Municipal Bonds | — | — | — | 588 | — | |||||||||||||||
Repurchase Agreements | 6,309 | 130 | — | 2,483 | 3,472 | |||||||||||||||
U.S. Government and U.S. Government Agency | 98,900 | 13,345 | 43,418 | — | 13,981 | |||||||||||||||
Level 3—Significant unobservable inputs | ||||||||||||||||||||
None | — | — | — | — | — | |||||||||||||||
Liabilities | ||||||||||||||||||||
Level 1—Quoted prices | ||||||||||||||||||||
None | — | — | — | — | — | |||||||||||||||
Level 2—Other significant observable inputs | ||||||||||||||||||||
None | — | — | — | — | — | |||||||||||||||
Level 3—Significant unobservable inputs | ||||||||||||||||||||
None | — | — | — | — | — | |||||||||||||||
Total investments in securities | $ | 296,275 | $ | 38,699 | $ | 105,356 | $ | 50,576 | $ | 184,544 | ||||||||||
Other financial instruments | ||||||||||||||||||||
Assets | ||||||||||||||||||||
Level 1—Quoted prices | ||||||||||||||||||||
Futures Contracts | $ | — | $ | — | $ | — | $ | — | $ | 1,681 | ||||||||||
Level 2—Other significant observable inputs | ||||||||||||||||||||
Forward Foreign Currency Contracts | — | — | — | — | 1,204 | |||||||||||||||
Swaps | 198 | 70 | — | 122 | 177 | |||||||||||||||
Level 3—Significant unobservable inputs | ||||||||||||||||||||
None | — | — | — | — | — | |||||||||||||||
Liabilities | ||||||||||||||||||||
Level 1—Quoted prices | ||||||||||||||||||||
Futures Contracts | — | — | — | — | (3,273 | ) | ||||||||||||||
Level 2—Other significant observable inputs | ||||||||||||||||||||
Forward Foreign Currency Contracts | — | — | — | (26 | ) | (3,061 | ) | |||||||||||||
Swaps | (40 | ) | — | — | (44 | ) | (51 | ) | ||||||||||||
U.S. Government Agency | (15,333 | ) | (4,087 | ) | (11,225 | ) | — | — | ||||||||||||
Level 3—Significant unobservable inputs | ||||||||||||||||||||
None | — | — | — | — | — | |||||||||||||||
Total other financial instruments | $ | (15,175 | ) | $ | (4,017 | ) | $ | (11,225 | ) | $ | 52 | $ | (3,323 | ) |
See Portfolio of Investments for Sector Classification.
140 | Annual Report | December 31, 2021 |
Notes to Financial Statements
(4) Transactions with Affiliates
(a) Management and Expense Limitation Agreements
Each Fund has a management agreement with the Adviser for investment management, clerical, bookkeeping and administrative services. Each Fund pays the Adviser an annual management fee, which is accrued daily and paid monthly, based on a specified percentage of the Fund’s average daily net assets. Each Fund’s annual management fee rate is as follows:
U.S. Equity Funds | ||||
Growth | 0.75 | % | ||
Large Cap Growth | 0.60 | % | ||
Mid Cap Growth | 0.90 | % | ||
Small-Mid Cap Core | 0.90 | % | ||
Small-Mid Cap Growth | 1.00 | % | ||
Small Cap Growth | 1.10 | % | ||
Small Cap Value2 | 0.75 | % | ||
Fixed Income Funds | ||||
Bond | 0.30 | % | ||
Short Duration Bond1: | ||||
First $250 million | 0.25 | % | ||
In excess of $250 million | 0.20 | % | ||
Ultra-Short Duration Bond | 0.30 | % | ||
Emerging Markets Debt Fund | ||||
Emerging Markets Debt | 0.65 | % | ||
Multi-Asset and Alternative Fund | ||||
Macro Allocation | 0.80 | % | ||
Global Equity Fund | ||||
Global Leaders | 0.85 | % |
International Equity Funds | ||||
International Leaders | 0.85 | % | ||
International Growth: | ||||
First $250 million | 1.10 | % | ||
Next $2.25 billion | 1.00 | % | ||
Next $2.5 billion | 0.975 | % | ||
Next $5 billion | 0.95 | % | ||
Next $5 billion | 0.925 | % | ||
In excess of $15 billion | 0.90 | % | ||
Institutional International Growth: | ||||
First $500 million | 1.00 | % | ||
Next $500 million | 0.95 | % | ||
Next $1.5 billion | 0.90 | % | ||
Next $2.5 billion | 0.875 | % | ||
Next $5 billion | 0.85 | % | ||
Next $5 billion | 0.825 | % | ||
In excess of $15 billion | 0.80 | % | ||
International Small Cap Growth | 1.00 | % | ||
Emerging Markets Leaders | 1.10 | % | ||
Emerging Markets Growth | 1.10 | % | ||
Emerging Markets Small Cap Growth | 1.10 | % | ||
China Growth | 1.00 | % |
1 | Prior to November 1, 2021, the Short Duration Bond Fund paid a management fee that also included a charge of 5% of gross income. |
2 | For the period from November 1, 2020 to July 16, 2021, the Predecessor Fund had an investment advisory agreement with ICM for investment advisory services at a fee calculated at an annual rate of 0.70% of the Predecessor Fund’s average daily net assets. Effective July 17, 2021, the management fee paid to the Adviser was 0.75%. |
December 31, 2021 | William Blair Funds | 141 |
Notes to Financial Statements
The Funds have also entered into an Amended and Restated Expense Limitation Agreement with the Adviser. Under the terms of the agreement, the Adviser will waive its management fee and/or reimburse a Fund for certain operating expenses, subject to certain excluded expenses, in excess of the agreed upon rate through April 30, 2022. Excluded expenses include interest expenses, taxes, brokerage commissions, acquired fund fees and expenses, dividend and interest expenses on short sales, other investment-related costs and extraordinary expenses, such as litigation and other expenses not incurred in the ordinary course of a Fund’s business. The amount the Adviser owes a Fund as of the reporting date is recorded as Receivable from Adviser in the Statements of Assets and Liabilities. The Adviser reimburses the Funds on a monthly basis. The Adviser will waive fees and/or reimburse expenses to the extent that the total operating expenses for the stated class of the Funds, subject to certain excluded expenses, exceed the following rates (as a percentage of average daily net assets):
Class N | Class I | Institutional/Class R6 | ||||||||||||||||||||||
Effective | Effective | Effective | Effective | Effective | Effective | |||||||||||||||||||
May 1, 2021 | May 1, 2020 | May 1, 2021 | May 1, 2020 | May 1, 2021 | May 1, 2020 | |||||||||||||||||||
through | through | through | through | through | through | |||||||||||||||||||
April 30, | April 30, | April 30, | April 30, | April 30, | April 30, | |||||||||||||||||||
Fund | 2022 | 2021 | 2022 | 2021 | 2022 | 2021 | ||||||||||||||||||
Growth | 1.20 | % | 1.20 | % | 0.95 | % | 0.95 | % | 0.90 | % | 0.90 | % | ||||||||||||
Large Cap Growth | 0.90 | % | 0.90 | % | 0.65 | % | 0.65 | % | 0.60 | % | 0.60 | % | ||||||||||||
Mid Cap Growth | 1.20 | % | 1.20 | % | 0.95 | % | 0.95 | % | 0.90 | % | 0.90 | % | ||||||||||||
Small-Mid Cap Core | N/A | N/A | 0.95 | % | 0.95 | % | 0.90 | % | 0.90 | % | ||||||||||||||
Small-Mid Cap Growth | 1.35 | % | 1.35 | % | 1.10 | % | 1.10 | % | 1.05 | % | 1.05 | % | ||||||||||||
Small Cap Growth | 1.50 | % | 1.50 | % | 1.25 | % | 1.25 | % | 1.20 | % | 1.20 | % | ||||||||||||
Small Cap Value | 1.15 | %1 | N/A | 0.89 | %1 | N/A | 0.85 | %1 | N/A | |||||||||||||||
Global Leaders | 1.15 | % | 1.15 | % | 0.90 | % | 0.90 | % | 0.85 | % | 0.85 | % | ||||||||||||
International Leaders | 1.15 | % | 1.15 | % | 0.90 | % | 0.90 | % | 0.85 | % | 0.85 | % | ||||||||||||
International Growth | 1.45 | % | 1.45 | % | 1.20 | % | 1.20 | % | 1.15 | % | 1.15 | % | ||||||||||||
Institutional International Growth | N/A | N/A | N/A | N/A | 1.05 | % | 1.05 | % | ||||||||||||||||
International Small Cap Growth | 1.55 | % | 1.55 | % | 1.30 | % | 1.30 | % | 1.25 | % | 1.25 | % | ||||||||||||
Emerging Markets Leaders | 1.40 | % | 1.40 | % | 1.15 | % | 1.15 | % | 1.10 | % | 1.10 | % | ||||||||||||
Emerging Markets Growth | 1.60 | % | 1.60 | % | 1.35 | % | 1.35 | % | 1.30 | % | 1.30 | % | ||||||||||||
Emerging Markets Small Cap Growth | 1.55 | % | 1.55 | % | 1.30 | % | 1.30 | % | 1.25 | % | 1.25 | % | ||||||||||||
China Growth | N/A | N/A | 1.05 | %3 | N/A | 1.00 | %3 | N/A | ||||||||||||||||
Bond | 0.60 | % | 0.60 | % | 0.45 | % | 0.45 | % | 0.40 | % | 0.40 | % | ||||||||||||
Short Duration Bond | 0.45 | %2 | 0.85 | % | 0.30 | %2 | 0.70 | % | 0.25 | %2 | 0.65 | % | ||||||||||||
Ultra-Short Duration Bond | 0.55 | % | 0.55 | % | 0.40 | % | 0.40 | % | 0.35 | % | 0.35 | % | ||||||||||||
Emerging Markets Debt | N/A | N/A | 0.70 | %4 | N/A | 0.65 | %4 | N/A | ||||||||||||||||
Macro Allocation | 1.25 | % | 1.25 | % | 1.00 | % | 1.00 | % | 0.95 | % | 0.95 | % |
1 | Effective July 17, 2021 through April 30, 2023. |
2 | Effective November 1, 2021 through April 30, 2023. Prior to November 1, 2021, the rates were 0.85%, 0.70% and 0.65% for Class N, Class I and Class R6, respectively. |
3 | Effective August 27, 2021 (Commencement of Operations) through April 30, 2023. |
4 | Effective May 25, 2021 (Commencement of Operations) through April 30, 2023. |
The fee waivers and/or expense reimbursements received by each class are reported in the Statements of Operations.
The Adviser is entitled to recoupment of previously waived fees and reimbursed expenses for a period of three years subsequent to a fund’s commencement of operations to the extent that such recoupment does not cause the fund’s annual operating expenses (after the recoupment is taken into account) to exceed both (1) the expense limit in place when such amounts were waived or reimbursed and (2) the fund’s current expense limitation. The total amounts available for recoupment as of December 31, 2021 were as follows (in thousands):
Available for | Expiration of | |||||
Fund | Recoupment | Recoupment | ||||
Small-Mid Cap Core | $573 | October 1, 2022 | ||||
China Growth | 56 | August 27, 2024 | ||||
Emerging Markets Debt | 134 | May 25, 2024 |
142 | Annual Report | December 31, 2021 |
Notes to Financial Statements
(b) Underwriting and Distribution Services Agreements
Pursuant to separate Underwriting and Distribution Agreements, WBC is the principal underwriter and distributor for the continuous offering of shares of the Trust and acts as agent of the Trust in the sale of its shares. The Underwriting Agreement provides that the Distributor will use its best efforts to distribute the Trust’s shares. The Distributor is not compensated under the Underwriting Agreement.
Each Fund, except the Small-Mid Cap Core, China Growth, Emerging Markets Debt and Institutional International Growth Funds, has a Distribution Agreement with WBC for distribution services to the Funds’ Class N shares. Each Fund pays WBC an annual fee, payable monthly, based on a specified percentage of its average daily net assets of Class N shares. The annual rate expressed as a percentage of average daily net assets for Class N is 0.25% for all Funds except the Bond, Short Duration Bond and Ultra-Short Duration Bond Funds, which is 0.15%. Pursuant to the Distribution Agreement, WBC enters into related selling group agreements with various firms at various rates for sales of the Funds’ Class N shares.
(c) Administration Agreement
For the period from November 1, 2020 to July 16, 2021, the Predecessor Fund and the SEI Investments Distribution Co. were parties to a Distribution Agreement. SEI Investments Distribution Co. received no fees under the agreement. Effective July 17, 2021, the Small Cap Value Fund was subject to the aforementioned Underwriting and Distribution Agreements.
(d) Voluntary Payment from Adviser
During the year ended December 31, 2021, the Adviser performed a review of trading activity and noted certain funds may have been negatively impacted. As a result, the Adviser made a voluntary payment to the Bond, Short Duration Bond and Ultra-Short Duration Bond Funds of $163, $64 and $179, respectively (in thousands).
(5) Investment Transactions
Investment transactions, excluding U.S. government securities and short-term securities, for the year ended December 31, 2021, were as follows (in thousands):
Fund | Purchases | Sales | ||||||
Growth | $ | 95,380 | $ | 118,167 | ||||
Large Cap Growth | 403,023 | 218,825 | ||||||
Mid Cap Growth | 37,220 | 74,722 | ||||||
Small-Mid Cap Core | 74,745 | 26,070 | ||||||
Small-Mid Cap Growth | 1,278,474 | 1,740,203 | ||||||
Small Cap Growth | 348,206 | 410,556 | ||||||
Small Cap Value (a) | 147,665 | 188,854 | ||||||
Global Leaders | 23,602 | 24,795 | ||||||
International Leaders | 302,243 | 214,645 | ||||||
International Growth | 438,123 | 873,870 | ||||||
Institutional International Growth | 244,002 | 428,615 | ||||||
International Small Cap Growth | 192,999 | 185,092 | ||||||
Emerging Markets Leaders | 366,359 | 133,361 | ||||||
Emerging Markets Growth | 600,513 | 799,741 | ||||||
Emerging Markets Small Cap Growth | 460,009 | 326,741 | ||||||
China Growth (b) | 7,761 | 152 | ||||||
Bond | 263,956 | 239,899 | ||||||
Short Duration Bond | 55,672 | 71,957 | ||||||
Ultra-Short Duration Bond | 313,064 | 304,383 | ||||||
Emerging Markets Debt (c) | 77,311 | 27,338 | ||||||
Macro Allocation | 144,622 | 282,724 |
(a) | For the period from November 1, 2021 to December 31, 2021. |
(b) | For the period from August 27, 2021 (Commencement of Operations) to December 31, 2021. |
(c) | For the period from May 25, 2021 (Commencement of Operations) to December 31, 2021. |
December 31, 2021 | William Blair Funds | 143 |
Notes to Financial Statements
Investment transactions in U.S. government securities, excluding short-term securities, for the year ended December 31, 2021, were as follows (in thousands):
Fund | Purchases | Sales | ||||||
Bond | $ | 56,651 | $ 57,268 | |||||
Short Duration Bond | 6,591 | 9,760 | ||||||
Ultra-Short Duration Bond | 7,000 | 19,236 | ||||||
Macro Allocation | — | — |
(6) Financial Derivative Instruments
Each Fund may use derivative instruments to maintain liquidity, to provide hedging, or in anticipation of changes in the composition of its portfolio holdings or as otherwise provided in each Fund’s prospectus. The Macro Allocation Fund may also use derivative instruments to implement its investment strategy and obtain desired investment exposures, including by taking long or short positions indirectly through derivative instruments such as, but not limited to, futures, swaps, options and forward foreign currency contracts. Such long and short positions may be intended to enhance expected return, reduce expected risk, or both. For additional information regarding the asset class exposures the Macro Allocation Fund typically seeks through futures, swaps, options and forward foreign currency contracts, see the Fund’s principal investment strategy disclosure in its prospectus. The derivative instruments held as of December 31, 2021, as disclosed in each Fund’s Portfolios of Investments, are representative of each Fund’s derivative instrument trading activity during the year ended December 31, 2021.
Derivative transactions carry counterparty risk as they are based on contracts between a Fund and the applicable counterparty. For exchange-traded or cleared derivative contracts, such counterparty risk is limited due to the role of the exchange or clearinghouse. OTC derivative contracts, however, are exposed to counterparty risk in the amount of unrealized gains, net of collateral held, for the duration of the contract.
The Macro Allocation Fund is subject to certain netting arrangements through International Swaps and Derivatives Association, Inc. Master Agreements and Credit Support Annexes (“ISDAs”). The ISDAs maintain provisions for general obligations, representations, agreements, collateral and events of default or termination. The ISDAs cover certain OTC derivative securities entered into by the Macro Allocation Fund with various counterparties and allow the Macro Allocation Fund to close out and net its total exposure to a counterparty in the event of a default.
Futures Contracts
A futures contract provides for the future sale by one party and purchase by another party of a specified amount of a specific financial instrument for a specified price at a designated date, time and place. An index futures contract is an agreement pursuant to which the parties agree to take or make delivery of an amount of cash equal to the difference between the value of the index at the close of the last trading day of the contract and the price at which the index futures contract was originally written. A futures contract can be closed out prior to delivery by entering into an offsetting transaction in a matching futures contract. Although the value of an index might be a function of the value of certain specified securities, no physical delivery of those securities is made. If the offsetting purchase price is less than the original sale price, a Fund realizes a gain; if it is more, a Fund realizes a loss. Conversely, if the offsetting sale price is more than the original purchase price, a Fund realizes a gain; if it is less, a Fund realizes a loss. The transaction costs must also be included in these calculations. There can be no assurance, however, that a Fund will be able to enter into an offsetting transaction with respect to a particular futures contract at a particular time. If a Fund is not able to enter into an offsetting transaction, a Fund will continue to be required to maintain the margin deposits on the futures contract.
Upon entering into a futures contract, a Fund is required to pledge to the broker an amount of cash, U.S. government securities, or other liquid assets equal to a certain percentage of the contract amount (“initial margin deposit”). Futures contracts are marked to market daily and an appropriate payable or receivable for the change in value (“variation margin”) is recorded by a Fund and a cash payment is either made to or received from the broker each day. Gains or losses on futures contracts are recognized but not considered realized until the contracts expire or are closed and are included in the Statement of Operations.
Options
The purchase or sale of an option by a Fund involves the payment or receipt of a premium by the investor and the corresponding right or obligation, as the case may be, either to purchase or sell the underlying security, commodity, or other instrument for a specific price at a certain time or during a certain period. Purchasing options involves the risk that the underlying instrument
144 | Annual Report | December 31, 2021 |
Notes to Financial Statements
will not change price in the manner expected, so the investor loses its premium. Writing options involves potentially greater risk because the investor is exposed to the extent of the actual price movement in the underlying security rather than only the amount of the premium paid (which could result in a potentially unlimited loss). OTC options also involve counterparty credit risk. Purchased options are shown as an asset in the Statement of Assets and Liabilities and are included in Investments in securities. Premiums received for written options are shown as a liability in the Statement of Assets and Liabilities. Realized gains and losses on the sale, expiration or assignment of an option are disclosed in the Statement of Operations.
Forward Foreign Currency Contracts
The Global Equity, International Equity, Emerging Markets Debt and Multi-Asset and Alternative Funds may enter into forward foreign currency contracts. When entering into a forward foreign currency contract, a Fund agrees to receive or deliver a fixed quantity of foreign currency for an agreed-upon price on an agreed future date. A Fund’s net equity therein, representing unrealized gain or loss on the contracts as measured by the difference between the forward foreign exchange rates at the dates of entry into the contracts and the forward rates at the reporting date, is included in the Statement of Assets and Liabilities as unrealized appreciation/depreciation on forward foreign currency contracts. Realized and unrealized gains and losses are included in the Statement of Operations. These instruments may involve market risk, credit risk, or both kinds of risks in excess of the amount recognized in the Statement of Assets and Liabilities. Risks arise from the possible inability of counterparties to meet the terms of their contracts and from the price movements in currencies.
Swap Contracts
Swap agreements may include total return, interest rate, securities index, commodity, security, currency exchange rate, credit default index, volatility and variance swaps. Cleared swaps are transacted through futures commission merchants that are members of central clearing houses with the clearing house serving as a central counterparty similar to transactions in futures contracts. In a standard “swap” transaction, two parties agree to exchange the returns (or differentials in rates of return) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or “swapped” between the parties are calculated with respect to a “notional amount” (i.e., the change in the value of a particular dollar amount invested, for example, at a particular interest rate, in a particular foreign currency, or in a “basket” of securities representing a particular index). Swap agreements are subject to the risk that the counterparty to the swap will default on its obligation to pay a Fund and the risk that a Fund will not be able to meet its obligations to pay the counterparty to the swap. Swap agreements may also involve fees, commissions or other costs that may reduce a Fund’s gains from a swap agreement or may cause a Fund to lose money. To the extent permitted by its investment policies and restrictions, a Fund may invest in the following types of swaps:
Credit Default Swaps—A Fund may invest in credit default swaps as a means of “buying” credit protection (i.e., attempting to mitigate the risk of default or credit quality deterioration in some portion of a Fund’s holdings) or “selling” credit protection (i.e., attempting to gain exposure to an underlying issuer’s credit quality characteristics without directly investing in that issuer). A credit default swap is a contract between a buyer and a seller of protection against a pre-defined credit event (e.g., a ratings downgrade or default) on an underlying reference obligation, which may be a single debt instrument or baskets or indices of securities. Under current regulatory requirements, a Fund may be a buyer or seller of a credit default swap. As a seller of protection on credit default swap agreements, a Fund will generally receive from the buyer of protection a fixed rate of income throughout the term of the swap provided that there is no credit event. A Fund adds leverage to its portfolio because the Fund is subject to investment exposure on the notional amount of the swap. The maximum potential amount of future payments that a Fund as a seller of protection could be required to make under a credit default swap agreement equals the notional amount of the agreement. Notional amounts of each individual credit default swap agreement outstanding as of the period end for which a Fund is the seller of protection are disclosed in the Fund’s Portfolio of Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the same Fund for the same referenced entity or entities. For credit default swap contracts on credit indices, the quoted market prices and resulting values serve as an indicator of the payment performance risk. Increasing market values, in absolute terms when compared to the notional amount of the swap, typically represent deterioration of the referenced entities’ credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the swap.
Interest Rate Swap—A Fund may invest in interest rate swaps to gain or mitigate exposure to changes in interest rates. Interest rate swap agreements involve a commitment between parties to pay either a fixed interest rate or a floating interest rate based on a notional amount of principal. The parties make payments at predetermined intervals throughout the life of the swap. As a payer, a Fund would make the fixed payment and receive the floating payment. As a receiver, a Fund would make the floating payment and receive the fixed payment.
December 31, 2021 | William Blair Funds | 145 |
Notes to Financial Statements
Total Return Swap—A Fund may invest in total return swaps to gain or mitigate exposure to an underlying security, or securities. Total return swap agreements may involve commitments to pay interest in exchange for the return on the underlying security, or securities. At maturity, a net cash flow is exchanged between the parties based on the total return of the underlying security, or securities, less a financing rate. As a receiver in the transaction, a Fund would receive a payment for a positive return and would make a payment for a negative return. As a payer in the transaction, a Fund would make a payment for a positive return and would receive a payment for a negative return.
Variance Swap—A Fund may invest in variance swaps in order to gain or mitigate its exposure to an underlying reference entity such as a broad based index. A variance swap is an agreement between two parties to exchange cash flows based on the measured variance of a reference entity. The payer agrees to exchange the fixed rate, which is the variance strike price of the reference entity, to the receiver for the floating rate, which is the realized variance price of the reference entity. At the time the trade is originated, the agreed upon variance strike price is generally set so that the fair value of the swap is near zero. At maturity, a net cash flow is exchanged between the parties based on the difference between the final realized variance price of the swap and the variance strike price multiplied by the notional, or vega amount. As a receiver of the floating rate, a Fund would receive a payment if the final realized variance price is greater than the variance strike price and would make a payment if the final realized variance price is less than the variance strike price. As a payer of the floating rate, a Fund would receive a payment if the final realized variance price is less than the variance strike price and would make a payment if the final realized variance price is greater than the variance strike price.
The following table presents the value of financial derivative instruments, by Fund and primary risk exposure, as of December 31,2021, and their respective location in the Statements of Assets and Liabilities (in thousands):
Assets | Liabilities | |||||||||||
Fund and Primary Risk Exposure | Statements of Assets and Liabilities | Value | Statements of Assets and Liabilities | Value | ||||||||
Bond | ||||||||||||
Credit | Receivable for variation margin on centrally cleared swaps(1) | $ | 198 | Payable for variation margin on centrally cleared swaps(1) | $ | 40 | ||||||
Short Duration Bond | ||||||||||||
Credit | Receivable for variation margin on centrally cleared swaps(1) | 70 | Payable for variation margin on centrally cleared swaps(1) | — | ||||||||
Emerging Markets Debt | ||||||||||||
Credit | Receivable for variation margin on centrally cleared swaps(1) | 17 | Payable for variation margin on centrally cleared swaps(1) | 6 | ||||||||
Currency | Unrealized appreciation on forward foreign currency contracts | — | Unrealized depreciation on forward foreign currency contracts) | 26 | ||||||||
Interest rate | Receivable for variation margin on centrally cleared swaps(1) | 105 | Payable for variation margin on centrally cleared swaps(1) | 38 | ||||||||
Macro Allocation | ||||||||||||
Currency | Unrealized appreciation on forward foreign currency contracts | 1,204 | Unrealized depreciation on forward foreign currency contracts | 3,061 | ||||||||
Equity | Receivable for futures variation margin(1) | 1,204 | Payable for futures variation margin(1) | 3,095 | ||||||||
Equity | Unrealized appreciation on swap contracts | 177 | Unrealized depreciation on swap contracts | — | ||||||||
Interest rate | Receivable for futures variation margin(1) | 477 | Payable for futures variation margin(1) | 178 | ||||||||
Interest rate | Receivable for variation margin on centrally cleared swaps(1) | — | Payable for variation margin on centrally cleared swaps(1) | 51 |
(1) | The table above includes cumulative appreciation/(depreciation) on futures contracts and centrally cleared swaps as reported in the applicable Fund’s Portfolio of Investments. Receivable/payable for variation margin on futures contracts and centrally cleared swaps as reported in the applicable Fund’s Statement of Assets and Liabilities represents the current day’s variation margin. |
146 | Annual Report | December 31, 2021 |
Notes to Financial Statements
The following table indicates the effect of derivatives, by Fund and primary risk exposure, in the Statements of Operations for the year ended December 31, 2021 (in thousands):
Net Realized Gain (Loss) | Change in Net Unrealized Appreciation (Depreciation) | |||||||||||
Fund and Primary Risk Exposure | Statements of Operations | Value | Statements of Operations | Value | ||||||||
Bond | ||||||||||||
Credit | Swaps | $ | (1,864 | ) | Swaps | $ | 1,036 | |||||
Short Duration Bond | ||||||||||||
Credit | Swaps | (576 | ) | Swaps | 394 | |||||||
Emerging Markets Debt | ||||||||||||
Credit | Swaps | 12 | Swaps | 11 | ||||||||
Currency | Forward foreign currency contracts | 187 | Forward foreign currency contracts | (26 | ) | |||||||
Interest rate | Swaps | (157 | ) | Swaps | 67 | |||||||
Macro Allocation | ||||||||||||
Credit | Swaps | 85 | Swaps | (43 | ) | |||||||
Currency | Forward foreign currency contracts | (1,781 | ) | Forward foreign currency contracts | (2,669 | ) | ||||||
Currency | Options(1) | 115 | Options(1) | — | ||||||||
Equity | Futures contracts | (31,533 | ) | Futures contracts | 4,131 | |||||||
Equity | Options(1) | (50 | ) | Options(1) | — | |||||||
Equity | Swaps | 2,898 | Swaps | (92 | ) | |||||||
Interest rate | Futures contracts | 339 | Futures contracts | 316 | ||||||||
Interest rate | Swaps | (1,567 | ) | Swaps | (311 | ) |
(1) | Purchased options are included in Investments in securities. |
The following table is a summary by counterparty of the derivative instruments and collateral pledged/(received) included in the Fund’s Statement of Assets and Liabilities at December 31, 2021 (in thousands):
Financial Derivative Assets | Financial Derivative Liabilities | ||||||||||||||||||||||||||||||||||||
Counterparty | Forward Foreign Currency Contracts | Swaps | Total | Forward Foreign Currency Contracts | Swaps | Total | Net Market Value | Collateral Pledged (Received) | Net Exposure | ||||||||||||||||||||||||||||
Macro Allocation | |||||||||||||||||||||||||||||||||||||
Citibank N.A. | $ | 1,204 | $ | — | $ | 1,204 | $ (3,061 | ) | $ | — | $ | (3,061 | ) | $ | (1,857 | ) | $961 | $ | (896 | ) | |||||||||||||||||
Credit Suisse | — | 176 | 176 | — | — | — | 176 | — | 176 | ||||||||||||||||||||||||||||
Goldman Sachs | — | 1 | 1 | — | — | — | 1 | — | 1 | ||||||||||||||||||||||||||||
$ | 1,204 | $ | 177 | $ | 1,381 | $ (3,061 | ) | $ | — | $ | (3,061 | ) | |||||||||||||||||||||||||
Emerging Markets Debt | |||||||||||||||||||||||||||||||||||||
Citibank N.A. | $— | $— | $— | $(26 | ) | $ | — | $(26 | ) | $(26 | ) | $— | $(26 | ) | |||||||||||||||||||||||
$— | $— | $— | $(26 | ) | $ | — | $(26 | ) |
The net exposure represents the amount due from/(due to) the counterparty in the event of default. Any net exposure is generally due to changes in market value of the underlying derivative instruments on the last day of the period as timing of collateral movement occurs the following day.
December 31, 2021 | William Blair Funds | 147 |
Notes to Financial Statements
(7) Fund Share Transactions
The following tables summarize the activity in capital shares of each Fund for the year ended December 31, 2021 (in thousands):
Class N | ||||||||||||||||||||||||||||||||
Dollars | Shares | |||||||||||||||||||||||||||||||
Fund | Sales | Reinvest | Redemptions | Total | Sales | Reinvest | Redemptions | Total | ||||||||||||||||||||||||
Growth | $ | 3,638 | $ | 4,724 | $ | 9,192 | $ | (830 | ) | 280 | 412 | 758 | (66 | ) | ||||||||||||||||||
Large Cap Growth | 65,433 | 8,488 | 41,026 | 32,895 | 2,867 | 356 | 1,830 | 1,393 | ||||||||||||||||||||||||
Mid Cap Growth | 267 | 225 | 1,283 | (791 | ) | 20 | 18 | 97 | (59 | ) | ||||||||||||||||||||||
Small-Mid Cap Growth | 36,098 | 21,174 | 142,815 | (85,543 | ) | 1,030 | 694 | 4,074 | (2,350 | ) | ||||||||||||||||||||||
Small Cap Growth | 31,616 | 31,635 | 54,012 | 9,239 | 821 | 1,043 | 1,468 | 396 | ||||||||||||||||||||||||
Small Cap Value (a) | 198 | 114 | 6,875 | (6,563 | ) | 5 | 4 | 203 | (194 | ) | ||||||||||||||||||||||
Global Leaders | 815 | 709 | 870 | 654 | 41 | 38 | 45 | 34 | ||||||||||||||||||||||||
International Leaders | 36,810 | 1,209 | 11,899 | 26,120 | 1,526 | 51 | 495 | 1,082 | ||||||||||||||||||||||||
International Growth | 18,167 | 30,895 | 37,544 | 11,518 | 440 | 847 | 933 | 354 | ||||||||||||||||||||||||
International Small Cap Growth | 502 | 443 | 332 | 613 | 27 | 28 | 19 | 36 | ||||||||||||||||||||||||
Emerging Markets Leaders | 6,412 | 95 | 5,943 | 564 | 494 | 9 | 454 | 49 | ||||||||||||||||||||||||
Emerging Markets Growth | 33,625 | 4,793 | 22,748 | 15,670 | 1,723 | 313 | 1,209 | 827 | ||||||||||||||||||||||||
Emerging Markets Small Cap Growth | 247 | 333 | 516 | 64 | 10 | 15 | 22 | 3 | ||||||||||||||||||||||||
Bond | 10,521 | 987 | 12,973 | (1,465 | ) | 998 | 94 | 1,239 | (147 | ) | ||||||||||||||||||||||
Short Duration Bond | 2,649 | 282 | 10,569 | (7,638 | ) | 307 | 33 | 1,233 | (893 | ) | ||||||||||||||||||||||
Ultra-Short Duration Bond | 13,344 | 285 | 14,478 | (849 | ) | 1,554 | 33 | 1,694 | (107 | ) | ||||||||||||||||||||||
Macro Allocation | 893 | 145 | 1,983 | (945 | ) | 81 | 13 | 179 | (85 | ) | ||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||
Dollars | Shares | |||||||||||||||||||||||||||||||
Fund | Sales | Reinvest | Redemptions | Total | Sales | Reinvest | Redemptions | Total | ||||||||||||||||||||||||
Growth | $ | 19,229 | $ | 30,211 | $ | 28,892 | $ | 20,548 | 1,245 | 2,088 | 1,918 | 1,415 | ||||||||||||||||||||
Large Cap Growth | 277,571 | 25,384 | 122,960 | 179,995 | 11,137 | 996 | 5,236 | 6,897 | ||||||||||||||||||||||||
Mid Cap Growth. | 8,724 | 1,875 | 46,351 | (35,752 | ) | 592 | 134 | 3,013 | (2,287 | ) | ||||||||||||||||||||||
Small-Mid Cap Core | 34,907 | — | 5,431 | 29,476 | 2,343 | — | 359 | 1,984 | ||||||||||||||||||||||||
Small-Mid Cap Growth | 487,031 | 209,644 | 1,385,928 | (689,253 | ) | 13,062 | 6,384 | 37,145 | (17,699 | ) | ||||||||||||||||||||||
Small Cap Growth | 84,017 | 63,719 | 121,526 | 26,210 | 1,948 | 1,786 | 2,923 | 811 | ||||||||||||||||||||||||
Small Cap Value (a) | 23,757 | 39,018 | 155,752 | (92,977 | ) | 709 | 1,209 | 4,486 | (2,568 | ) | ||||||||||||||||||||||
Global Leaders | 11,174 | 6,699 | 12,223 | 5,650 | 580 | 358 | 629 | 309 | ||||||||||||||||||||||||
International Leaders | 277,059 | 16,022 | 125,675 | 167,406 | 11,454 | 677 | 5,165 | 6,966 | ||||||||||||||||||||||||
International Growth | 114,128 | 173,395 | 481,271 | (193,748 | ) | 2,731 | 4,615 | 11,607 | (4,261 | ) | ||||||||||||||||||||||
International Small Cap Growth | 20,954 | 18,099 | 42,075 | (3,022 | ) | 1,120 | 1,121 | 2,340 | (99 | ) | ||||||||||||||||||||||
Emerging Markets Leaders | 73,454 | 3,030 | 90,773 | (14,289 | ) | 5,753 | 274 | 6,949 | (922 | ) | ||||||||||||||||||||||
Emerging Markets Growth | 167,716 | 29,260 | 91,992 | 104,984 | 8,926 | 1,876 | 4,848 | 5,954 | ||||||||||||||||||||||||
Emerging Markets Small Cap Growth | 38,960 | 13,160 | 39,950 | 12,170 | 1,569 | 569 | 1,663 | 475 | ||||||||||||||||||||||||
China Growth (b) | 5,955 | — | 13 | 5,942 | 581 | — | 1 | 580 | ||||||||||||||||||||||||
Bond | 71,548 | 5,569 | 88,221 | (11,104 | ) | 6,872 | 536 | 8,501 | (1,093 | ) | ||||||||||||||||||||||
Short Duration Bond | 8,255 | 583 | 29,071 | (20,233 | ) | 969 | 68 | 3,423 | (2,386 | ) | ||||||||||||||||||||||
Ultra-Short Duration Bond | 57,876 | 1,978 | 84,985 | (25,131 | ) | 6,748 | 232 | 9,965 | (2,985 | ) | ||||||||||||||||||||||
Emerging Markets Debt (c) | 1,531 | 35 | 26 | 1,540 | 154 | 4 | 3 | 155 | ||||||||||||||||||||||||
Macro Allocation | 16,639 | 1,737 | 123,374 | (104,998 | ) | 1,501 | 162 | 11,191 | (9,528 | ) |
(a) | The Small Cap Value Fund figures reflect the fiscal period from November 1, 2021 to December 31, 2021. |
(b) | For the period from August 27, 2021 (Commencement of Operations) to December 31, 2021. |
(c) | For the period from May 25, 2021 (Commencement of Operations) to December 31, 2021. |
148 | Annual Report | December 31, 2021 |
Notes to Financial Statements
Institutional/Class R6 | ||||||||||||||||||||||||||||||||
Dollars | Shares | |||||||||||||||||||||||||||||||
Fund | Sales | Reinvest | Redemptions | Total | Sales | Reinvest | Redemptions | Total | ||||||||||||||||||||||||
Growth | $ | 1,861 | $ | 1,576 | $ | 1,636 | $ | 1,801 | 122 | 109 | 109 | 122 | ||||||||||||||||||||
Large Cap Growth | 76,686 | 9,570 | 68,921 | 17,335 | 3,270 | 376 | 3,039 | 607 | ||||||||||||||||||||||||
Mid Cap Growth | — | 27 | — | 27 | — | 2 | — | 2 | ||||||||||||||||||||||||
Small-Mid Cap Core | 21,148 | — | 579 | 20,569 | 1,409 | — | 38 | 1,371 | ||||||||||||||||||||||||
Small-Mid Cap Growth | 237,266 | 27,797 | 44,182 | 220,881 | 6,258 | 845 | 1,178 | 5,925 | ||||||||||||||||||||||||
Small Cap Growth | 22,795 | 17,709 | 11,517 | 28,987 | 538 | 495 | 263 | 770 | ||||||||||||||||||||||||
Small Cap Value (a) | 132,843 | 38,299 | 30,838 | 140,304 | 3,809 | 1,187 | 877 | 4,119 | ||||||||||||||||||||||||
Global Leaders | 1,959 | 299 | 74 | 2,184 | 108 | 16 | 4 | 120 | ||||||||||||||||||||||||
International Leaders | 69,853 | 18,439 | 155,620 | (67,328 | ) | 2,934 | 779 | 6,494 | (2,781 | ) | ||||||||||||||||||||||
International Growth | 67,401 | 6,728 | 53,921 | 20,208 | 1,592 | 179 | 1,254 | 517 | ||||||||||||||||||||||||
Institutional International Growth | 48,760 | 181,112 | 211,193 | 18,679 | 2,286 | 9,812 | 9,861 | 2,237 | ||||||||||||||||||||||||
International Small Cap Growth | 43,609 | 30,924 | 6,391 | 68,142 | 2,217 | 1,903 | 343 | 3,777 | ||||||||||||||||||||||||
Emerging Markets Leaders | 327,586 | 32,387 | 70,570 | 289,403 | 25,256 | 2,931 | 5,236 | 22,951 | ||||||||||||||||||||||||
Emerging Markets Growth | 102,244 | 133,282 | 371,618 | (136,092 | ) | 5,116 | 8,447 | 18,743 | (5,180 | ) | ||||||||||||||||||||||
Emerging Markets Small Cap Growth | 203,333 | 26,845 | 61,716 | 168,462 | 8,175 | 1,159 | 2,519 | 6,815 | ||||||||||||||||||||||||
China Growth (b) | 1,767 | — | — | 1,767 | 177 | — | — | 177 | ||||||||||||||||||||||||
Bond | 4,743 | 1,459 | 3,236 | 2,966 | 455 | 141 | 311 | 285 | ||||||||||||||||||||||||
Short Duration Bond | 152 | 3 | — | 155 | 18 | — | — | 18 | ||||||||||||||||||||||||
Ultra-Short Duration Bond | 11,993 | 389 | 35,032 | (22,650 | ) | 1,404 | 45 | 4,090 | (2,641 | ) | ||||||||||||||||||||||
Emerging Markets Debt (c) | 51,069 | 1,240 | 111 | 52,198 | 5,101 | 127 | 11 | 5,217 | ||||||||||||||||||||||||
Macro Allocation | 457 | 2,917 | 64,172 | (60,798 | ) | 41 | 273 | 5,724 | (5,410 | ) | ||||||||||||||||||||||
Net Change in Net Assets Relating to Fund Share Activity | ||||||||||||||||||||||||||||||||
Dollars | Shares | |||||||||||||||||||||||||||||||
Fund | Sales | Reinvest | Redemptions | Total | Sales | Reinvest | Redemptions | Total | ||||||||||||||||||||||||
Growth | $ | 24,728 | $ | 36,511 | $ | 39,720 | $ | 21,519 | 1,647 | 2,609 | 2,785 | 1,471 | ||||||||||||||||||||
Large Cap Growth | 419,690 | 43,442 | 232,907 | 230,225 | 17,274 | 1,728 | 10,105 | 8,897 | ||||||||||||||||||||||||
Mid Cap Growth | 8,991 | 2,127 | 47,634 | (36,516 | ) | 612 | 154 | 3,110 | (2,344 | ) | ||||||||||||||||||||||
Small-Mid Cap Core | 56,055 | — | 6,010 | 50,045 | 3,752 | —- | 397 | 3,355 | ||||||||||||||||||||||||
Small-Mid Cap Growth | 760,395 | 258,615 | 1,572,925 | (553,915 | ) | 20,350 | 7,923 | 42,397 | (14,124 | ) | ||||||||||||||||||||||
Small Cap Growth | 138,428 | 113,063 | 187,055 | 64,436 | 3,307 | 3,324 | 4,654 | 1,977 | ||||||||||||||||||||||||
Small Cap Value (a) | 156,798 | 77,431 | 193,465 | 40,764 | 4,523 | 2,400 | 5,566 | 1,357 | ||||||||||||||||||||||||
Global Leaders | 13,948 | 7,707 | 13,167 | 8,488 | 729 | 412 | 678 | 463 | ||||||||||||||||||||||||
International Leaders | 383,722 | 35,670 | 293,194 | 126,198 | 15,914 | 1,507 | 12,154 | 5,267 | ||||||||||||||||||||||||
International Growth | 199,696 | 211,018 | 572,736 | (162,022 | ) | 4,763 | 5,641 | 13,794 | (3,390 | ) | ||||||||||||||||||||||
Institutional International Growth | 48,760 | 181,112 | 211,193 | 18,679 | 2,286 | 9,812 | 9,861 | 2,237 | ||||||||||||||||||||||||
International Small Cap Growth | 65,065 | 49,466 | 48,798 | 65,733 | 3,364 | 3,052 | 2,702 | 3,714 | ||||||||||||||||||||||||
Emerging Markets Leaders | 407,452 | 35,512 | 167,286 | 275,678 | 31,503 | 3,214 | 12,639 | 22,078 | ||||||||||||||||||||||||
Emerging Markets Growth | 303,585 | 167,335 | 486,358 | (15,438 | ) | 15,765 | 10,636 | 24,800 | 1,601 | |||||||||||||||||||||||
Emerging Markets Small Cap Growth | 242,540 | 40,338 | 102,182 | 180,696 | 9,754 | 1,743 | 4,204 | 7,293 | ||||||||||||||||||||||||
China Growth (b) | 7,722 | — | 13 | 7,709 | 758 | — | 1 | 757 | ||||||||||||||||||||||||
Bond | 86,812 | 8,015 | 104,430 | (9,603 | ) | 8,325 | 771 | 10,051 | (955 | ) | ||||||||||||||||||||||
Short Duration Bond | 11,056 | 868 | 39,640 | (27,716 | ) | 1,294 | 101 | 4,656 | (3,261 | ) | ||||||||||||||||||||||
Ultra-Short Duration Bond | 83,213 | 2,652 | 134,495 | (48,630 | ) | 9,706 | 310 | 15,749 | (5,733 | ) | ||||||||||||||||||||||
Emerging Markets Debt (c) | 52,600 | 1,275 | 137 | 53,738 | 5,255 | 131 | 14 | 5,372 | ||||||||||||||||||||||||
Macro Allocation | 17,989 | 4,799 | 189,529 | (166,741 | ) | 1,623 | 448 | 17,094 | (15,023 | ) |
(a) | The Small Cap Value Fund figures reflect the fiscal period from November 1, 2021 to December 31, 2021. |
(b) | For the period from August 27, 2021 (Commencement of Operations) to December 31, 2021. |
(c) | For the period from May 25, 2021 (Commencement of Operations) to December 31, 2021. |
December 31, 2021 | William Blair Funds | 149 |
Notes to Financial Statements
The following tables summarize the activity in capital shares of each Fund for the year ended December 31, 2020 (in thousands):
Class N | ||||||||||||||||||||||||||||||||
Dollars | Shares | |||||||||||||||||||||||||||||||
Fund | Sales | Reinvest | Redemptions | Total | Sales | Reinvest | Redemptions | Total | ||||||||||||||||||||||||
Growth | $ | 2,054 | $ | 4,719 | $ | 9,133 | $ | (2,360 | ) | 199 | 428 | 907 | (280 | ) | ||||||||||||||||||
Large Cap Growth | 103,916 | 5,098 | 72,994 | 36,020 | 6,564 | 257 | 4,199 | 2,622 | ||||||||||||||||||||||||
Mid Cap Growth | 580 | 436 | 1,290 | (274 | ) | 58 | 34 | 118 | (26 | ) | ||||||||||||||||||||||
Small-Mid Cap Growth | 52,389 | 5,571 | 146,798 | (88,838 | ) | 2,096 | 172 | 5,868 | (3,600 | ) | ||||||||||||||||||||||
Small Cap Growth | 33,285 | 18,183 | 79,823 | (28,355 | ) | 1,253 | 536 | 3,063 | (1,274 | ) | ||||||||||||||||||||||
Global Leaders | 1,294 | 1,318 | 1,082 | 1,530 | 79 | 76 | 71 | 84 | ||||||||||||||||||||||||
International Leaders | 13,189 | 140 | 7,585 | 5,744 | 660 | 6 | 420 | 246 | ||||||||||||||||||||||||
International Growth | 35,689 | 2,302 | 270,854 | (232,863 | ) | 1,431 | 60 | 10,703 | (9,212 | ) | ||||||||||||||||||||||
International Small Cap Growth | 156 | 57 | 1,156 | (943 | ) | 12 | 3 | 101 | (86 | ) | ||||||||||||||||||||||
Emerging Markets Leaders | 4,442 | 16 | 4,880 | (422 | ) | 432 | 1 | 474 | (41 | ) | ||||||||||||||||||||||
Emerging Markets Growth | 11,134 | 382 | 3,715 | 7,801 | 677 | 21 | 259 | 439 | ||||||||||||||||||||||||
Emerging Markets Small Cap Growth | 97 | — | 1,036 | (939 | ) | 5 | — | 67 | (62 | ) | ||||||||||||||||||||||
Bond | 17,987 | 1,085 | 12,752 | 6,320 | 1,685 | 102 | 1,228 | 559 | ||||||||||||||||||||||||
Short Duration Bond | 9,681 | 538 | 7,582 | 2,637 | 1,117 | 62 | 875 | 304 | ||||||||||||||||||||||||
Ultra-Short Duration Bond | 21,451 | 185 | 9,322 | 12,314 | 2,468 | 21 | 1,074 | 1,415 | ||||||||||||||||||||||||
Macro Allocation | 1,054 | 78 | 6,566 | (5,434 | ) | 97 | 7 | 602 | (498 | ) | ||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||
Dollars | Shares | |||||||||||||||||||||||||||||||
Fund | Sales | Reinvest | Redemptions | Total | Sales | Reinvest | Redemptions | Total | ||||||||||||||||||||||||
Growth | $ | 14,750 | $ | 26,685 | $ | 54,977 | $ | (13,542 | ) | 1,235 | 1,980 | 4,530 | (1,315 | ) | ||||||||||||||||||
Large Cap Growth | 219,016 | 11,860 | 185,086 | 45,790 | 12,682 | 563 | 9,216 | 4,029 | ||||||||||||||||||||||||
Mid Cap Growth | 10,548 | 5,059 | 17,687 | (2,080 | ) | 885 | 363 | 1,472 | (224 | ) | ||||||||||||||||||||||
Small-Mid Cap Core | 265,306 | — | 236,282 | 29,024 | 24,899 | — | 23,271 | 1,628 | ||||||||||||||||||||||||
Small-Mid Cap Growth | 704,716 | 50,709 | 850,114 | (94,689 | ) | 25,299 | 1,466 | 31,213 | (4,448 | ) | ||||||||||||||||||||||
Small Cap Growth | 53,293 | 34,928 | 185,988 | (97,767 | ) | 1,750 | 902 | 6,319 | (3,667 | ) | ||||||||||||||||||||||
Global Leaders | 12,040 | 12,211 | 46,586 | (22,335 | ) | 853 | 705 | 3,092 | (1,534 | ) | ||||||||||||||||||||||
International Leaders | 216,096 | 2,810 | 68,924 | 149,982 | 10,917 | 125 | 3,796 | 7,246 | ||||||||||||||||||||||||
International Growth | 272,612 | 19,944 | 417,516 | (124,960 | ) | 10,406 | 512 | 13,740 | (2,822 | ) | ||||||||||||||||||||||
International Small Cap Growth | 23,282 | 2,718 | 51,685 | (25,685 | ) | 1,680 | 158 | 3,837 | (1,999 | ) | ||||||||||||||||||||||
Emerging Markets Leaders | 15,739 | 590 | 10,915 | 5,414 | 1,480 | 45 | 1,115 | 410 | ||||||||||||||||||||||||
Emerging Markets Growth | 28,566 | 4,194 | 18,435 | 14,325 | 1,793 | 230 | 1,249 | 774 | ||||||||||||||||||||||||
Emerging Markets Small Cap Growth | 17,451 | 62 | 44,837 | (27,324 | ) | 1,057 | 3 | 2,759 | (1,699 | ) | ||||||||||||||||||||||
Bond | 71,936 | 5,973 | 59,078 | 18,831 | 6,799 | 567 | 5,669 | 1,697 | ||||||||||||||||||||||||
Short Duration Bond | 23,843 | 930 | 11,163 | 13,610 | 2,754 | 108 | 1,297 | 1,565 | ||||||||||||||||||||||||
Ultra-Short Duration Bond | 111,572 | 1,820 | 46,902 | 66,490 | 12,854 | 210 | 5,414 | 7,650 | ||||||||||||||||||||||||
Macro Allocation | 46,704 | 2,087 | 218,856 | (170,065 | ) | 4,300 | 192 | 20,335 | (15,843 | ) |
150 | Annual Report | December 31, 2021 |
Notes to Financial Statements
Institutional/Class R6 | ||||||||||||||||||||||||||||||||
Dollars | Shares | |||||||||||||||||||||||||||||||
Fund | Sales | Reinvest | Redemptions | Total | Sales | Reinvest | Redemptions | Total | ||||||||||||||||||||||||
Growth | $ | 11,384 | $ | 1,332 | $ | 1,426 | $ | 11,290 | 868 | 99 | 105 | 862 | ||||||||||||||||||||
Large Cap Growth | 171,386 | 5,663 | 4,494 | 172,555 | 8,196 | 269 | 225 | 8,240 | ||||||||||||||||||||||||
Mid Cap Growth | 361 | 42 | — | 403 | 29 | 3 | — | 32 | ||||||||||||||||||||||||
Small-Mid Cap Core | 901 | — | 43 | 858 | 93 | — | 5 | 88 | ||||||||||||||||||||||||
Small-Mid Cap Growth | 72,243 | 1,722 | 15,219 | 58,746 | 2,470 | 50 | 497 | 2,023 | ||||||||||||||||||||||||
Small Cap Growth | 27,131 | 8,907 | 15,142 | 20,896 | 748 | 230 | 466 | 512 | ||||||||||||||||||||||||
Global Leaders | 3,767 | 323 | 50,716 | (46,626 | ) | 263 | 19 | 3,336 | (3,054 | ) | ||||||||||||||||||||||
International Leaders | 161,317 | 5,704 | 68,132 | 98,889 | 8,186 | 253 | 3,738 | 4,701 | ||||||||||||||||||||||||
International Growth | 37,075 | 1,007 | 12,279 | 25,803 | 1,104 | 26 | 414 | 716 | ||||||||||||||||||||||||
Institutional International Growth | 148,064 | 150,369 | 1,102,278 | (803,845 | ) | 8,792 | 7,511 | 60,324 | (44,021 | ) | ||||||||||||||||||||||
International Small Cap Growth | 19,209 | 3,641 | 35,644 | (12,794 | ) | 1,297 | 210 | 2,453 | (946 | ) | ||||||||||||||||||||||
Emerging Markets Leaders | 40,847 | 2,293 | 78,532 | (35,392 | ) | 3,598 | 175 | 7,041 | (3,268 | ) | ||||||||||||||||||||||
Emerging Markets Growth | 278,462 | 39,570 | 225,547 | 92,485 | 18,092 | 2,152 | 14,653 | 5,591 | ||||||||||||||||||||||||
Emerging Markets Small Cap Growth | 54,151 | 129 | 71,930 | (17,650 | ) | 3,232 | 6 | 4,178 | (940 | ) | ||||||||||||||||||||||
Bond | 5,988 | 1,653 | 4,616 | 3,025 | 568 | 157 | 437 | 288 | ||||||||||||||||||||||||
Short Duration Bond | 16 | 2 | — | 18 | 2 | — | — | 2 | ||||||||||||||||||||||||
Ultra-Short Duration Bond | 33,079 | 644 | 29,885 | 3,838 | 3,815 | 74 | 3,442 | 447 | ||||||||||||||||||||||||
Macro Allocation | 28,210 | 2,521 | 212,589 | (181,858 | ) | 2,528 | 232 | 19,934 | (17,174 | ) | ||||||||||||||||||||||
Net Change in Net Assets Relating to Fund Share Activity | ||||||||||||||||||||||||||||||||
Dollars | Shares | |||||||||||||||||||||||||||||||
Fund | Sales | Reinvest | Redemptions | Total | Sales | Reinvest | Redemptions | Total | ||||||||||||||||||||||||
Growth | $ | 28,188 | $ | 32,736 | $ | 65,536 | $ | (4,612 | ) | 2,302 | 2,507 | 5,542 | (733 | ) | ||||||||||||||||||
Large Cap Growth | 494,318 | 22,621 | 262,574 | 254,365 | 27,442 | 1,089 | 13,640 | 14,891 | ||||||||||||||||||||||||
Mid Cap Growth | 11,489 | 5,537 | 18,977 | (1,951 | ) | 972 | 400 | 1,590 | (218 | ) | ||||||||||||||||||||||
Small-Mid Cap Core | 266,207 | — | 236,325 | 29,882 | 24,992 | — | 23,276 | 1,716 | ||||||||||||||||||||||||
Small-Mid Cap Growth | 829,348 | 58,002 | 1,012,131 | (124,781 | ) | 29,865 | 1,688 | 37,578 | (6,025 | ) | ||||||||||||||||||||||
Small Cap Growth | 113,709 | 62,018 | 280,953 | (105,226 | ) | 3,751 | 1,668 | 9,848 | (4,429 | ) | ||||||||||||||||||||||
Global Leaders | 17,101 | 13,852 | 98,384 | (67,431 | ) | 1,195 | 800 | 6,499 | (4,504 | ) | ||||||||||||||||||||||
International Leaders | 390,602 | 8,654 | 144,641 | 254,615 | 19,763 | 384 | 7,954 | 12,193 | ||||||||||||||||||||||||
International Growth | 345,376 | 23,253 | 700,649 | (332,020 | ) | 12,941 | 598 | 24,857 | (11,318 | ) | ||||||||||||||||||||||
Institutional International Growth | 148,064 | 150,369 | 1,102,278 | (803,845 | ) | 8,792 | 7,511 | 60,324 | (44,021 | ) | ||||||||||||||||||||||
International Small Cap Growth | 42,647 | 6,416 | 88,485 | (39,422 | ) | 2,989 | 371 | 6,391 | (3,031 | ) | ||||||||||||||||||||||
Emerging Markets Leaders | 61,028 | 2,899 | 94,327 | (30,400 | ) | 5,510 | 221 | 8,630 | (2,899 | ) | ||||||||||||||||||||||
Emerging Markets Growth | 318,162 | 44,146 | 247,697 | 114,611 | 20,562 | 2,403 | 16,161 | 6,804 | ||||||||||||||||||||||||
Emerging Markets Small Cap Growth | 71,699 | 191 | 117,803 | (45,913 | ) | 4,294 | 9 | 7,004 | (2,701 | ) | ||||||||||||||||||||||
Bond | 95,911 | 8,711 | 76,446 | 28,176 | 9,052 | 826 | 7,334 | 2,544 | ||||||||||||||||||||||||
Short Duration Bond | 33,540 | 1,470 | 18,745 | 16,265 | 3,873 | 170 | 2,172 | 1,871 | ||||||||||||||||||||||||
Ultra-Short Duration Bond | 166,102 | 2,649 | 86,109 | 82,642 | 19,137 | 305 | 9,930 | 9,512 | ||||||||||||||||||||||||
Macro Allocation | 75,968 | 4,686 | 438,011 | (357,357 | ) | 6,925 | 431 | 40,871 | (33,515 | ) |
December 31, 2021 | William Blair Funds | 151 |
Notes to Financial Statements
The following tables summarize the activity in capital shares of the Small Cap Value Fund for the years ended October 31, 2021 and 2020 (dollar amounts in thousands):
2021 | ||||||||||||||||||||||||||||||||||||||||
Dollars | Shares | |||||||||||||||||||||||||||||||||||||||
Sales | Issued in Reorga- nization | Reinvest | Redemptions | Total | Sales | Issued in Reorga- nization | Reinvest | Redemptions | Total | |||||||||||||||||||||||||||||||
Class N (a) | $ | 715 | $ | 10,216 | $ | — | $ | 1,521 | $ | 9,410 | 21,895 | 317,775 | — | 46,864 | 292,806 | |||||||||||||||||||||||||
Class I | 398,983 | 24,461 | 181,788 | 1,146,946 | (541,714 | ) | 12,568,399 | 760,891 | 5,519,000 | 34,394,651 | (15,546,361 | ) | ||||||||||||||||||||||||||||
Class R6 (a) | 856,747 | 11,057 | — | 11,133 | 856,671 | 25,855,620 | 343,951 | — | 330,341 | 25,869,230 | ||||||||||||||||||||||||||||||
$ | 1,256,445 | $ | 45,734 | $ | 181,788 | $ | 1,159,600 | $ | 324,367 | |||||||||||||||||||||||||||||||
2020 | ||||||||||||||||||||||||||||||||||||||||
Dollars | Shares | |||||||||||||||||||||||||||||||||||||||
Sales | Reinvest | Redemptions | Total | Sales | Reinvest | Redemptions | Total | |||||||||||||||||||||||||||||||||
Class I | $ | 484,278 | $ | 40,801 | $ | 103,715 | $ | 421,364 | 21,049,717 | 1,428,054 | 4,338,309 | 18,139,462 |
(a) | For the period from July 17, 2021 (Commencement of Operations) to October 31, 2021. |
(8) Subsequent Events
On February 14, 2022, the Bond, Short Duration Bond and Ultra-Short Duration Bond Funds announced that the Board of Trustees, upon the recommendation of the Adviser, had approved the redemption of all shares of each of the Bond, Short Duration Bond and Ultra-Short Duration Bond Funds outstanding on or before April 15, 2022, and the subsequent termination of the Bond, Short Duration Bond and Ultra-Short Duration Bond Funds.
The Funds have evaluated subsequent events through the date of issuance of the Funds’ financial statements and have determined there are no other impacts to the Funds’ financial statements.
152 | Annual Report | December 31, 2021 |
Financial Highlights — For a share outstanding throughout each period
Growth Fund
Class N | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 11.15 | $ | 9.45 | $ | 7.91 | $ | 10.27 | $ | 11.41 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.08 | ) | (0.05 | ) | (0.03 | ) | (0.04 | ) | (0.02 | ) | ||||||||||
Net realized and unrealized gain (loss) on investments | 2.49 | 3.43 | 2.54 | 0.75 | 2.78 | |||||||||||||||
Total from investment operations | 2.41 | 3.38 | 2.51 | 0.71 | 2.76 | |||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | — | — | — | — | — | |||||||||||||||
Net realized gain | 1.75 | 1.68 | 0.97 | 3.07 | 3.90 | |||||||||||||||
Total distributions | 1.75 | 1.68 | 0.97 | 3.07 | 3.90 | |||||||||||||||
Net asset value, end of year | $ | 11.81 | $ | 11.15 | $ | 9.45 | $ | 7.91 | $ | 10.27 | ||||||||||
Total return (%) | 22.09 | 35.97 | 31.97 | 5.10 | 24.35 | |||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.21 | 1.26 | 1.24 | 1.22 | 1.20 | |||||||||||||||
Expenses, net of waivers and reimbursements | 1.20 | 1.20 | 1.20 | 1.20 | 1.20 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | (0.67 | ) | (0.55 | ) | (0.35 | ) | (0.36 | ) | (0.14 | ) | ||||||||||
Net investment income (loss), net of waivers and reimbursements | (0.66 | ) | (0.49 | ) | (0.31 | ) | (0.34 | ) | (0.14 | ) | ||||||||||
Class N net assets at the end of the year (in thousands) | $ | 36,807 | $ | 35,494 | $ | 32,710 | $ | 38,370 | $ | 34,886 | ||||||||||
Portfolio turnover rate (%) | 30 | 46 | 39 | 46 | 38 | |||||||||||||||
Class I | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 13.64 | $ | 11.25 | $ | 9.25 | $ | 11.51 | $ | 12.39 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.05 | ) | (0.03 | ) | (0.00 | )^ | (0.01 | ) | 0.02 | |||||||||||
Net realized and unrealized gain (loss) on investments | 3.07 | 4.10 | 2.97 | 0.82 | 3.02 | |||||||||||||||
Total from investment operations | 3.02 | 4.07 | 2.97 | 0.81 | 3.04 | |||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | — | — | — | 0.00 | ^ | 0.02 | ||||||||||||||
Net realized gain | 1.75 | 1.68 | 0.97 | 3.07 | 3.90 | |||||||||||||||
Total distributions | 1.75 | 1.68 | 0.97 | 3.07 | 3.92 | |||||||||||||||
Net asset value, end of year | $ | 14.91 | $ | 13.64 | $ | 11.25 | $ | 9.25 | $ | 11.51 | ||||||||||
Total return (%) | 22.54 | 36.35 | 32.32 | 5.42 | 24.64 | |||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses | 0.89 | 0.93 | 0.92 | 0.91 | 0.92 | |||||||||||||||
Net investment income (loss) | (0.35 | ) | (0.23 | ) | (0.03 | ) | (0.06 | ) | 0.12 | |||||||||||
Class I net assets at the end of the year (in thousands) | $ | 293,900 | $ | 249,716 | $ | 220,660 | $ | 187,306 | $ | 318,848 | ||||||||||
Portfolio turnover rate (%) | 30 | 46 | 39 | 46 | 38 |
^ | Amount is less than $0.005 per share. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
December 31, 2021 | William Blair Funds | 153 |
Financial Highlights — For a share outstanding throughout each period
Growth Fund
Class R6 | ||||||||||||
Years Ended December 31, | ||||||||||||
2021 | 2020 | 2019(a) | ||||||||||
Net asset value, beginning of year | $ | 13.67 | $ | 11.26 | $ | 11.06 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income (loss) | (0.04 | ) | (0.03 | ) | (0.00 | )^ | ||||||
Net realized and unrealized gain (loss) on investments | 3.07 | 4.12 | 1.17 | |||||||||
Total from investment operations | 3.03 | 4.09 | 1.17 | |||||||||
Less distributions from: | ||||||||||||
Net investment income | — | — | — | |||||||||
Net realized gain | 1.75 | 1.68 | 0.97 | |||||||||
Total distributions | 1.75 | 1.68 | 0.97 | |||||||||
Net asset value, end of year | $ | 14.95 | $ | 13.67 | $ | 11.26 | ||||||
Total return (%)* | 22.55 | 36.50 | 10.75 | |||||||||
Ratios to average daily net assets (%)**: | ||||||||||||
Expenses | 0.84 | 0.87 | 0.88 | |||||||||
Net investment income (loss) | (0.29 | ) | (0.23 | ) | (0.06 | ) | ||||||
Class R6 net assets at the end of the year (in thousands) | $ | 14,993 | $ | 12,041 | $ | 217 | ||||||
Portfolio turnover rate (%)* | 30 | 46 | 39 |
(a) | For the period from May 2, 2019 (Commencement of Operations) to December 31, 2019. |
* | Rates are not annualized for periods less than a year. |
** | Rates are annualized for periods less than a year. |
^ | Amount is less than $0.005 per share. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
154 | Annual Report | December 31, 2021 |
Financial Highlights — For a share outstanding throughout each period
Large Cap Growth Fund
Class N | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 20.03 | $ | 15.27 | $ | 11.99 | $ | 13.35 | $ | 10.26 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.07 | ) | 0.01 | 0.00 | ^ | (0.02 | ) | (0.02 | ) | |||||||||||
Net realized and unrealized gain (loss) on investments | 5.65 | 5.52 | 4.29 | 0.81 | 3.19 | |||||||||||||||
Total from investment operations | 5.58 | 5.53 | 4.29 | 0.79 | 3.17 | |||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | — | 0.00 | ^ | 0.01 | — | — | ||||||||||||||
Net realized gain | 1.12 | 0.77 | 1.00 | 2.15 | 0.08 | |||||||||||||||
Total distributions | 1.12 | 0.77 | 1.01 | 2.15 | 0.08 | |||||||||||||||
Net asset value, end of year | $ | 24.49 | $ | 20.03 | $ | 15.27 | $ | 11.99 | $ | 13.35 | ||||||||||
Total return (%) | 28.03 | 36.30 | 36.00 | 4.96 | 30.88 | |||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.05 | 1.09 | 1.12 | 1.21 | 1.19 | |||||||||||||||
Expenses, net of waivers and reimbursements | 0.90 | 0.90 | 0.95 | 1.05 | 1.05 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | (0.46 | ) | (0.15 | ) | (0.14 | ) | (0.33 | ) | (0.27 | ) | ||||||||||
Net investment income (loss), net of waivers and reimbursements | (0.31 | ) | 0.04 | 0.03 | (0.17 | ) | (0.13 | ) | ||||||||||||
Class N net assets at the end of the year (in thousands) | $ | 203,014 | $ | 138,152 | $ | 65,314 | $ | 41,361 | $ | 25,604 | ||||||||||
Portfolio turnover rate (%) | 26 | 35 | 37 | 47 | 29 | |||||||||||||||
Class I | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 21.29 | $ | 16.19 | $ | 12.66 | $ | 13.97 | $ | 10.70 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.02 | ) | 0.06 | 0.04 | 0.01 | 0.02 | ||||||||||||||
Net realized and unrealized gain (loss) on investments | 6.03 | 5.85 | 4.54 | 0.85 | 3.33 | |||||||||||||||
Total from investment operations | 6.01 | 5.91 | 4.58 | 0.86 | 3.35 | |||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | — | 0.04 | 0.05 | 0.02 | — | |||||||||||||||
Net realized gain | 1.12 | 0.77 | 1.00 | 2.15 | 0.08 | |||||||||||||||
Total distributions | 1.12 | 0.81 | 1.05 | 2.17 | 0.08 | |||||||||||||||
Net asset value, end of year | $ | 26.18 | $ | 21.29 | $ | 16.19 | $ | 12.66 | $ | 13.97 | ||||||||||
Total return (%) | 28.39 | 36.59 | 36.35 | 5.21 | 31.29 | |||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 0.75 | 0.80 | 0.81 | 0.90 | 0.90 | |||||||||||||||
Expenses, net of waivers and reimbursements | 0.65 | 0.65 | 0.70 | 0.80 | 0.80 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | (0.17 | ) | 0.16 | 0.16 | (0.01 | ) | 0.03 | |||||||||||||
Net investment income (loss), net of waivers and reimbursements | (0.07 | ) | 0.31 | 0.27 | 0.09 | 0.13 | ||||||||||||||
Class I net assets at the end of the year (in thousands) | $ | 669,060 | $ | 397,370 | $ | 236,930 | $ | 137,599 | $ | 177,959 | ||||||||||
Portfolio turnover rate (%) | 26 | 35 | 37 | 47 | 29 |
^ | Amount is less than $0.005 per share. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
December 31, 2021 | William Blair Funds | 155 |
Financial Highlights — For a share outstanding throughout each period
Large Cap Growth Fund
Class R6 | ||||||||||||
Years Ended December 31, | ||||||||||||
2021 | 2020 | 2019(a) | ||||||||||
Net asset value, beginning of year | $ | 21.27 | $ | 16.17 | $ | 15.12 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income (loss) | (0.00 | )^ | 0.01 | 0.04 | ||||||||
Net realized and unrealized gain (loss) on investments | 6.01 | 5.91 | 2.07 | |||||||||
Total from investment operations | 6.01 | 5.92 | 2.11 | |||||||||
Less distributions from: | ||||||||||||
Net investment income | 0.00 | ^ | 0.05 | 0.06 | ||||||||
Net realized gain | 1.12 | 0.77 | 1.00 | |||||||||
Total distributions | 1.12 | 0.82 | 1.06 | |||||||||
Net asset value, end of year | $ | 26.16 | $ | 21.27 | $ | 16.17 | ||||||
Total return (%)* | 28.42 | 36.70 | 14.13 | |||||||||
Ratios to average daily net assets (%)**: | ||||||||||||
Expenses, before waivers and reimbursements | 0.67 | 0.70 | 0.71 | |||||||||
Expenses, net of waivers and reimbursements | 0.60 | 0.60 | 0.60 | |||||||||
Net investment income (loss), before waivers and reimbursements | (0.08 | ) | (0.03 | ) | 0.22 | |||||||
Net investment income (loss), net of waivers and reimbursements | (0.01 | ) | 0.07 | 0.33 | ||||||||
Class R6 net assets at the end of the year (in thousands) | $ | 233,946 | $ | 177,347 | $ | 1,590 | ||||||
Portfolio turnover rate (%)* | 26 | 35 | 37 |
(a) | For the period from May 2, 2019 (Commencement of Operations) to December 31, 2019. |
* | Rates are not annualized for periods less than a year. |
** | Rates are annualized for periods less than a year. |
^ | Amount is less than $0.005 per share. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
156 | Annual Report | December 31, 2021 |
Financial Highlights — For a share outstanding throughout each period
Mid Cap Growth Fund
Class N | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 12.89 | $ | 10.99 | $ | 8.87 | $ | 10.92 | $ | 10.69 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.12 | ) | (0.08 | ) | (0.05 | ) | (0.06 | ) | (0.08 | ) | ||||||||||
Net realized and unrealized gain (loss) on investments | 1.13 | 3.01 | 3.22 | 0.03 | 2.29 | |||||||||||||||
Total from investment operations | 1.01 | 2.93 | 3.17 | (0.03 | ) | 2.21 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | — | — | — | — | — | |||||||||||||||
Net realized gain | 0.61 | 1.03 | 1.05 | 2.02 | 1.98 | |||||||||||||||
Total distributions | 0.61 | 1.03 | 1.05 | 2.02 | 1.98 | |||||||||||||||
Net asset value, end of year | $ | 13.29 | $ | 12.89 | $ | 10.99 | $ | 8.87 | $ | 10.92 | ||||||||||
Total return (%) | 8.10 | 26.80 | 36.02 | (1.20 | ) | 20.88 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.48 | 1.54 | 1.51 | 1.57 | 1.49 | |||||||||||||||
Expenses, net of waivers and reimbursements | 1.20 | 1.20 | 1.20 | 1.23 | 1.30 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | (1.14 | ) | (1.06 | ) | (0.79 | ) | (0.85 | ) | (0.84 | ) | ||||||||||
Net investment income (loss), net of waivers and reimbursements | (0.86 | ) | (0.72 | ) | (0.48 | ) | (0.51 | ) | (0.65 | ) | ||||||||||
Class N net assets at the end of the year (in thousands) | $ | 5,480 | $ | 6,074 | $ | 5,465 | $ | 4,944 | $ | 6,166 | ||||||||||
Portfolio turnover rate (%) | 47 | 45 | 43 | 58 | 59 | |||||||||||||||
Class I | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 14.13 | $ | 11.93 | $ | 9.55 | $ | 11.57 | $ | 11.20 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.09 | ) | (0.06 | ) | (0.03 | ) | (0.03 | ) | (0.05 | ) | ||||||||||
Net realized and unrealized gain (loss) on investments | 1.24 | 3.29 | 3.46 | 0.03 | 2.40 | |||||||||||||||
Total from investment operations | 1.15 | 3.23 | 3.43 | — | 2.35 | |||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | — | — | — | — | — | |||||||||||||||
Net realized gain | 0.61 | 1.03 | 1.05 | 2.02 | 1.98 | |||||||||||||||
Total distributions | 0.61 | 1.03 | 1.05 | 2.02 | 1.98 | |||||||||||||||
Net asset value, end of year | $ | 14.67 | $ | 14.13 | $ | 11.93 | $ | 9.55 | $ | 11.57 | ||||||||||
Total return (%) | 8.38 | 27.21 | 36.17 | (0.86 | ) | 21.18 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.24 | 1.29 | 1.28 | 1.31 | 1.23 | |||||||||||||||
Expenses, net of waivers and reimbursements | 0.95 | 0.95 | 0.95 | 0.98 | 1.05 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | (0.91 | ) | (0.80 | ) | (0.56 | ) | (0.58 | ) | (0.58 | ) | ||||||||||
Net investment income (loss), net of waivers and reimbursements | (0.62 | ) | (0.46 | ) | (0.23 | ) | (0.25 | ) | (0.40 | ) | ||||||||||
Class I net assets at the end of the year (in thousands) | $ | 46,694 | $ | 77,273 | $ | 67,936 | $ | 51,173 | $ | 71,369 | ||||||||||
Portfolio turnover rate (%) | 47 | 45 | 43 | 58 | 59 |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
December 31, 2021 | William Blair Funds | 157 |
Financial Highlights — For a share outstanding throughout each period
Mid Cap Growth Fund
Class R6 | ||||||||||||
Years Ended December 31, | ||||||||||||
2021 | 2020 | 2019(a) | ||||||||||
Net asset value, beginning of year | $ | 14.14 | $ | 11.94 | $ | 11.93 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income (loss) | (0.08 | ) | (0.06 | ) | (0.01 | ) | ||||||
Net realized and unrealized gain (loss) on investments | 1.24 | 3.29 | 1.07 | |||||||||
Total from investment operations | 1.16 | 3.23 | 1.06 | |||||||||
Less distributions from: | ||||||||||||
Net investment income | — | — | — | |||||||||
Net realized gain | 0.61 | 1.03 | 1.05 | |||||||||
Total distributions | 0.61 | 1.03 | 1.05 | |||||||||
Net asset value, end of year | $ | 14.69 | $ | 14.14 | $ | 11.94 | ||||||
Total return (%)* | 8.44 | 27.18 | 9.10 | |||||||||
Ratios to average daily net assets (%)**: | ||||||||||||
Expenses, before waivers and reimbursements | 1.11 | 1.16 | 1.14 | |||||||||
Expenses, net of waivers and reimbursements | 0.90 | 0.90 | 0.90 | |||||||||
Net investment income (loss), before waivers and reimbursements | (0.78 | ) | (0.70 | ) | (0.41 | ) | ||||||
Net investment income (loss), net of waivers and reimbursements | (0.57 | ) | (0.44 | ) | (0.17 | ) | ||||||
Class R6 net assets at the end of the year (in thousands) | $ | 676 | $ | 623 | $ | 145 | ||||||
Portfolio turnover rate (%)* | 47 | 45 | 43 |
(a) | For the period from May 2, 2019 (Commencement of Operations) to December 31, 2019. |
* | Rates are not annualized for periods less than a year. |
** | Rates are annualized for periods less than a year. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
158 | Annual Report | December 31, 2021 |
Financial Highlights — For a share outstanding throughout each period
Small-Mid Cap Core Fund
Class I | ||||||||||||
Years Ended December 31, | ||||||||||||
2021 | 2020 | 2019(a) | ||||||||||
Net asset value, beginning of year | $ | 12.88 | $ | 10.68 | $ | 10.00 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income (loss) | (0.03 | ) | 0.00 | ^ | 0.02 | |||||||
Net realized and unrealized gain (loss) on investments | 3.46 | 2.20 | 0.67 | |||||||||
Total from investment operations | 3.43 | 2.20 | 0.69 | |||||||||
Less distributions from: | ||||||||||||
Net investment income | — | — | 0.01 | |||||||||
Net realized gain | — | — | — | |||||||||
Total distributions | — | — | 0.01 | |||||||||
Net asset value, end of year | $ | 16.31 | $ | 12.88 | $ | 10.68 | ||||||
Total return (%)* | 26.63 | 20.60 | 6.87 | |||||||||
Ratios to average daily net assets (%)**: | ||||||||||||
Expenses, before waivers and reimbursements | 1.25 | 1.22 | 3.92 | |||||||||
Expenses, net of waivers and reimbursements | 0.95 | 0.95 | 0.95 | |||||||||
Net investment income (loss), before waivers and reimbursements | (0.47 | ) | (0.27 | ) | (2.23 | ) | ||||||
Net investment income (loss), net of waivers and reimbursements | (0.17 | ) | 0.00 | 0.74 | ||||||||
Class I net assets at the end of the year (in thousands) | $ | 61,433 | $ | 22,958 | $ | 1,655 | ||||||
Portfolio turnover rate (%)* | 45 | 244 | 12 | |||||||||
Class R6 | ||||||||||||
Years Ended December 31, | ||||||||||||
2021 | 2020 | 2019(a) | ||||||||||
Net asset value, beginning of year | $ | 12.88 | $ | 10.68 | $ | 10.00 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income (loss) | (0.02 | ) | 0.01 | 0.01 | ||||||||
Net realized and unrealized gain (loss) on investments | 3.46 | 2.19 | 0.68 | |||||||||
Total from investment operations | 3.44 | 2.20 | 0.69 | |||||||||
Less distributions from: | ||||||||||||
Net investment income | — | 0.00^ | 0.01 | |||||||||
Net realized gain | — | — | — | |||||||||
Total distributions | — | 0.00 | ^ | 0.01 | ||||||||
Net asset value, end of year | $ | 16.32 | $ | 12.88 | $ | 10.68 | ||||||
Total return (%)* | 26.71 | 20.60 | 6.88 | |||||||||
Ratios to average daily net assets (%)**: | ||||||||||||
Expenses, before waivers and reimbursements | 1.16 | 1.07 | 3.92 | |||||||||
Expenses, net of waivers and reimbursements | 0.90 | 0.90 | 0.90 | |||||||||
Net investment income (loss), before waivers and reimbursements | (0.37 | ) | (0.11 | ) | (2.71 | ) | ||||||
Net investment income (loss), net of waivers and reimbursements | (0.11 | ) | 0.06 | 0.31 | ||||||||
Class R6 net assets at the end of the year (in thousands) | $ | 31,347 | $ | 7,087 | $ | 4,933 | ||||||
Portfolio turnover rate (%)* | 45 | 244 | 12 |
(a) | For the period from October 1, 2019 (Commencement of Operations) to December 31, 2019. |
* | Rates are not annualized for periods less than a year. |
** | Rates are annualized for periods less than a year. |
^ | Amount is less than $0.005 per share. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
December 31, 2021 | William Blair Funds | 159 |
Financial Highlights — For a share outstanding throughout each period
Small-Mid Cap Growth Fund
Class N | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 32.96 | $ | 25.41 | $ | 20.97 | $ | 23.36 | $ | 19.20 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.36 | ) | (0.24 | ) | (0.20 | ) | (0.18 | ) | (0.16 | ) | ||||||||||
Net realized and unrealized gain (loss) on investments | 2.90 | 8.37 | 6.56 | (0.25 | ) | 5.62 | ||||||||||||||
Total from investment operations | 2.54 | 8.13 | 6.36 | (0.43 | ) | 5.46 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | — | — | — | — | — | |||||||||||||||
Net realized gain | 3.23 | 0.58 | 1.92 | 1.96 | 1.30 | |||||||||||||||
Total distributions | 3.23 | 0.58 | 1.92 | 1.96 | 1.30 | |||||||||||||||
Net asset value, end of year | $ | 32.27 | $ | 32.96 | $ | 25.41 | $ | 20.97 | $ | 23.36 | ||||||||||
Total return (%) | 8.27 | 32.04 | 30.41 | (2.29 | ) | 28.57 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.43 | 1.45 | 1.43 | 1.44 | 1.43 | |||||||||||||||
Expenses, net of waivers and reimbursements | 1.35 | 1.35 | 1.35 | 1.35 | 1.35 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | (1.10 | ) | (1.01 | ) | (0.88 | ) | (0.81 | ) | (0.82 | ) | ||||||||||
Net investment income (loss), net of waivers and reimbursements | (1.02 | ) | (0.91 | ) | (0.80 | ) | (0.72 | ) | (0.74 | ) | ||||||||||
Class N net assets at the end of the year (in thousands) | $ | 232,166 | $ | 314,572 | $ | 334,017 | $ | 424,865 | $ | 228,828 | ||||||||||
Portfolio turnover rate (%) | 38 | 55 | 56 | 46 | 64 | |||||||||||||||
Class I | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 35.13 | $ | 26.99 | $ | 22.12 | $ | 24.48 | $ | 20.02 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.29 | ) | (0.19 | ) | (0.14 | ) | (0.12 | ) | (0.11 | ) | ||||||||||
Net realized and unrealized gain (loss) on investments | 3.11 | 8.91 | 6.93 | (0.28 | ) | 5.87 | ||||||||||||||
Total from investment operations | 2.82 | 8.72 | 6.79 | (0.40 | ) | 5.76 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | — | — | — | — | — | |||||||||||||||
Net realized gain | 3.23 | 0.58 | 1.92 | 1.96 | 1.30 | |||||||||||||||
Total distributions | 3.23 | 0.58 | 1.92 | 1.96 | 1.30 | |||||||||||||||
Net asset value, end of year | $ | 34.72 | $ | 35.13 | $ | 26.99 | $ | 22.12 | $ | 24.48 | ||||||||||
Total return (%) | 8.56 | 32.35 | 30.77 | (2.06 | ) | 28.90 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.16 | 1.17 | 1.16 | 1.16 | 1.16 | |||||||||||||||
Expenses, net of waivers and reimbursements | 1.10 | 1.10 | 1.10 | 1.10 | 1.10 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | (0.83 | ) | (0.73 | ) | (0.59 | ) | (0.53 | ) | (0.55 | ) | ||||||||||
Net investment income (loss), net of waivers and reimbursements | (0.77 | ) | (0.66 | ) | (0.53 | ) | (0.47 | ) | (0.49 | ) | ||||||||||
Class I net assets at the end of the year (in thousands) | $ | 2,487,862 | $ | 3,139,290 | $ | 2,531,823 | $ | 1,979,105 | $ | 1,576,180 | ||||||||||
Portfolio turnover rate (%) | 38 | 55 | 56 | 46 | 64 |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
160 | Annual Report | December 31, 2021 |
Financial Highlights — For a share outstanding throughout each period
Small-Mid Cap Growth Fund
Class R6 | |||||||||||||
Years Ended December 31, | |||||||||||||
2021 | 2020 | 2019(a) | |||||||||||
Net asset value, beginning of year | $ | 35.18 | $ | 27.01 | $ | 26.76 | |||||||
Income (loss) from investment operations: | |||||||||||||
Net investment income (loss) | (0.26 | ) | (0.17 | ) | (0.09 | ) | |||||||
Net realized and unrealized gain (loss) on investments | 3.10 | 8.92 | 2.26 | ||||||||||
Total from investment operations | 2.84 | 8.75 | 2.17 | ||||||||||
Less distributions from: | |||||||||||||
Net investment income | — | — | — | ||||||||||
Net realized gain | 3.23 | 0.58 | 1.92 | ||||||||||
Total distributions | 3.23 | 0.58 | 1.92 | ||||||||||
Net asset value, end of year | $ | 34.79 | $ | 35.18 | $ | 27.01 | |||||||
Total return (%)* | 8.60 | 32.44 | 8.17 | ||||||||||
Ratios to average daily net assets (%)**: | |||||||||||||
Expenses | 1.03 | 1.05 | 1.05 | ||||||||||
Net investment income (loss) | (0.69 | ) | (0.61 | ) | (0.46 | ) | |||||||
Class R6 net assets at the end of the year (in thousands) | $ | 328,034 | $ | 123,220 | $ | 39,974 | |||||||
Portfolio turnover rate (%)* | 38 | 55 | 56 |
(a) | For the period from May 2, 2019 (Commencement of Operations) to December 31, 2019. |
* | Rates are not annualized for periods less than a year. |
** | Rates are annualized for periods less than a year. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
December 31, 2021 | William Blair Funds | 161 |
Financial Highlights — For a share outstanding throughout each period
Small Cap Growth Fund
Class N | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 34.49 | $ | 27.75 | $ | 23.23 | $ | 26.87 | $ | 25.24 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.45 | ) | (0.29 | ) | (0.24 | ) | (0.27 | ) | (0.25 | ) | ||||||||||
Net realized and unrealized gain (loss) on investments | 4.56 | 10.86 | 5.40 | (0.10 | ) | 6.88 | ||||||||||||||
Total from investment operations | 4.11 | 10.57 | 5.16 | (0.37 | ) | 6.63 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | — | — | — | — | — | |||||||||||||||
Net realized gain | 6.70 | 3.83 | 0.64 | 3.27 | 5.00 | |||||||||||||||
Total distributions | 6.70 | 3.83 | 0.64 | 3.27 | 5.00 | |||||||||||||||
Net asset value, end of year | $ | 31.90 | $ | 34.49 | $ | 27.75 | $ | 23.23 | $ | 26.87 | ||||||||||
Total return (%) | 12.91 | 38.32 | 22.26 | (2.14 | ) | 26.70 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.56 | 1.58 | 1.54 | 1.55 | 1.54 | |||||||||||||||
Expenses, net of waivers and reimbursements | 1.50 | 1.50 | 1.50 | 1.50 | 1.50 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | (1.24 | ) | (1.10 | ) | (0.92 | ) | (0.94 | ) | (0.93 | ) | ||||||||||
Net investment income (loss), net of waivers and reimbursements | (1.18 | ) | (1.02 | ) | (0.88 | ) | (0.89 | ) | (0.89 | ) | ||||||||||
Class N net assets at the end of the year (in thousands) | $ | 179,739 | $ | 180,635 | $ | 180,706 | $ | 169,074 | $ | 146,291 | ||||||||||
Portfolio turnover rate (%) | 49 | 71 | 51 | 74 | 81 | |||||||||||||||
Class I | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 39.36 | $ | 31.19 | $ | 25.99 | $ | 29.61 | $ | 27.34 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.41 | ) | (0.24 | ) | (0.19 | ) | (0.21 | ) | (0.20 | ) | ||||||||||
Net realized and unrealized gain (loss) on investments | 5.27 | 12.24 | 6.03 | (0.14 | ) | 7.47 | ||||||||||||||
Total from investment operations | 4.86 | 12.00 | 5.84 | (0.35 | ) | 7.27 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | — | — | — | — | — | |||||||||||||||
Net realized gain | 6.70 | 3.83 | 0.64 | 3.27 | 5.00 | |||||||||||||||
Total distributions | 6.70 | 3.83 | 0.64 | 3.27 | 5.00 | |||||||||||||||
Net asset value, end of year | $ | 37.52 | $ | 39.36 | $ | 31.19 | $ | 25.99 | $ | 29.61 | ||||||||||
Total return (%) | 13.22 | 38.68 | 22.51 | (1.88 | ) | 26.99 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.25 | 1.30 | 1.27 | 1.25 | 1.25 | |||||||||||||||
Expenses, net of waivers and reimbursements | 1.25 | 1.25 | 1.25 | 1.25 | 1.25 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | (0.93 | ) | (0.82 | ) | (0.65 | ) | (0.65 | ) | (0.64 | ) | ||||||||||
Net investment income (loss), net of waivers and reimbursements | (0.93 | ) | (0.77 | ) | (0.63 | ) | (0.65 | ) | (0.64 | ) | ||||||||||
Class I net assets at the end of the year (in thousands) | $ | 402,629 | $ | 390,511 | $ | 423,881 | $ | 410,233 | $ | 343,119 | ||||||||||
Portfolio turnover rate (%) | 49 | 71 | 51 | 74 | 81 |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
162 | Annual Report | December 31, 2021 |
Financial Highlights — For a share outstanding throughout each period
Small Cap Growth Fund
Class R6 | ||||||||||||
Years Ended December 31, | ||||||||||||
2021 | 2020 | 2019(a) | ||||||||||
Net asset value, beginning of year | $ | 39.40 | $ | 31.20 | $ | 31.00 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income (loss) | (0.37 | ) | (0.23 | ) | (0.11 | ) | ||||||
Net realized and unrealized gain (loss) on investments | 5.27 | 12.26 | 0.95 | |||||||||
Total from investment operations | 4.90 | 12.03 | 0.84 | |||||||||
Less distributions from: | ||||||||||||
Net investment income | — | — | — | |||||||||
Net realized gain | 6.70 | 3.83 | 0.64 | |||||||||
Total distributions | 6.70 | 3.83 | 0.64 | |||||||||
Net asset value, end of year | $ | 37.60 | $ | 39.40 | $ | 31.20 | ||||||
Total return (%)* | 13.31 | 38.76 | 2.75 | |||||||||
Ratios to average daily net assets (%)**: | ||||||||||||
Expenses | 1.16 | 1.19 | 1.18 | |||||||||
Net investment income (loss) | (0.84 | ) | (0.71 | ) | (0.51 | ) | ||||||
Class R6 net assets at the end of the year (in thousands) | $ | 127,710 | $ | 103,462 | $ | 65,950 | ||||||
Portfolio turnover rate (%)* | 49 | 71 | 51 |
(a) | For the period from May 2, 2019 (Commencement of Operations) to December 31, 2019. |
* | Rates are not annualized for periods less than a year. |
** | Rates are annualized for periods less than a year. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
December 31, 2021 | William Blair Funds | 163 |
Financial Highlights — For a share outstanding throughout each period
Small Cap Value Fund
Class N | ||||||||||
Period Ended December 31, | Period Ended October 31, | |||||||||
2021(b) | 2021(a) | |||||||||
Net asset value, beginning of year | $ | 33.49 | $ | 32.15 | ||||||
Income (loss) from investment operations: | ||||||||||
Net investment income (loss) | 0.00 | ^ | 0.05 | |||||||
Net realized and unrealized gain (loss) on investments | 1.37 | 1.29 | ||||||||
Total from investment operations | 1.37 | 1.34 | ||||||||
Less distributions from: | ||||||||||
Net investment income | — | — | ||||||||
Net realized gain | 1.23 | — | ||||||||
Total distributions | 1.23 | — | ||||||||
Net asset value, end of year | $ | 33.63 | $ | 33.49 | ||||||
Total return (%)* | 4.24 | 4.17 | ||||||||
Ratios to average daily net assets (%)**: | ||||||||||
Expenses, before waivers and reimbursements | 1.26 | 1.17 | ||||||||
Expenses, net of waivers and reimbursements | 1.15 | 1.15 | ||||||||
Net investment income (loss), before waivers and reimbursements | (0.05 | ) | 0.51 | |||||||
Net investment income (loss), net of waivers and reimbursements | 0.06 | 0.53 | ||||||||
Class N net assets at the end of the year (in thousands) | $ | 3,313 | $ | 9,805 | ||||||
Portfolio turnover rate (%)* | 7 | 35 |
Class I | ||||||||||||||||||||||||||
Period Ended December 31, | Year Ended October 31, | |||||||||||||||||||||||||
2021(b) | 2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||||
Net asset value, beginning of year | $ | 33.52 | $ | 23.79 | $ | 28.84 | $ | 31.53 | $ | 35.04 | $ | 27.27 | ||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||
Net investment income (loss) | 0.03 | 0.18 | 0.09 | 0.18 | 0.06 | 0.06 | ||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 1.35 | 12.91 | (3.89 | ) | 1.59 | (1.00 | ) | 8.61 | ||||||||||||||||||
Total from investment operations | 1.38 | 13.09 | (3.80 | ) | 1.77 | (0.94 | ) | 8.67 | ||||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||||
Net investment income | 0.09 | 0.11 | 0.07 | 0.15 | 0.09 | 0.03 | ||||||||||||||||||||
Net realized gain | 1.23 | 3.25 | 1.18 | 4.31 | 2.48 | 0.87 | ||||||||||||||||||||
Total distributions | 1.32 | 3.36 | 1.25 | 4.46 | 2.57 | 0.90 | ||||||||||||||||||||
Net asset value, end of year | $ | 33.58 | $ | 33.52 | $ | 23.79 | $ | 28.84 | $ | 31.53 | $ | 35.04 | ||||||||||||||
Total return (%)* | 4.31 | 55.32 | (13.91 | ) | 8.60 | (3.06 | ) | 32.07 | ||||||||||||||||||
Ratios to average daily net assets (%)**: | ||||||||||||||||||||||||||
Expenses | 0.82 | 0.86 | 0.89 | 0.93 | 0.93 | 0.95 | ||||||||||||||||||||
Net investment income (loss) | 0.55 | 0.52 | 0.37 | 0.63 | 0.16 | 0.17 | ||||||||||||||||||||
Class I net assets at the end of the year (in thousands) | $ | 1,059,157 | $ | 1,143,150 | $ | 1,181,409 | $ | 908,831 | $ | 738,558 | $ | 768,329 | ||||||||||||||
Portfolio turnover rate (%)* | 7 | 35 | 27 | 31 | 31 | 30 |
(a) | For the period from July 17, 2021 (Commencement of Operations) to October 31, 2021. (b) For the period from November 1, 2021 to December 31, 2021. |
* | Rates are not annualized for periods less than a year. |
** | Rates are annualized for periods less than a year. |
^ | Amount is less than $0.005 per share. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
164 | Annual Report | December 31, 2021 |
Financial Highlights — For a share outstanding throughout each period
Small Cap Value Fund
Class R6 | ||||||||||
Period Ended December 31, | Period Ended October 31, | |||||||||
2021(b) | 2021(a) | |||||||||
Net asset value, beginning of year | $ | 33.53 | $ | 32.15 | ||||||
Income (loss) from investment operations: | ||||||||||
Net investment income (loss) | 0.03 | 0.06 | ||||||||
Net realized and unrealized gain (loss) on investments | 1.35 | 1.32 | ||||||||
Total from investment operations | 1.38 | 1.38 | ||||||||
Less distributions from: | ||||||||||
Net investment income | 0.10 | — | ||||||||
Net realized gain | 1.23 | — | ||||||||
Total distributions | 1.33 | — | ||||||||
Net asset value, end of year | $ | 33.58 | $ | 33.53 | ||||||
Total return (%)* | 4.33 | 4.26 | ||||||||
Ratios to average daily net assets (%)**: | ||||||||||
Expenses | 0.78 | 0.78 | ||||||||
Net investment income (loss) | 0.59 | 0.64 | ||||||||
Class R6 net assets at the end of the year (in thousands) | $1,006,928 | $867,272 | ||||||||
Portfolio turnover rate (%)* | 7 | 35 |
(a) | For the period from July 17, 2021 (Commencement of Operations) to October 31, 2021. |
(b) | For the period from November 1, 2021 to December 31, 2021. |
* | Rates are not annualized for periods less than a year. |
** | Rates are annualized for periods less than a year. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
December 31, 2021 | William Blair Funds | 165 |
Financial Highlights — For a share outstanding throughout each period
Global Leaders Fund
Class N | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 17.41 | $ | 14.92 | $ | 11.47 | $ | 14.53 | $ | 11.60 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.11 | ) | (0.06 | ) | 0.01 | 0.02 | 0.05 | |||||||||||||
Net realized and unrealized gain (loss) on investments | 2.96 | 4.74 | 3.61 | (1.12 | ) | 3.46 | ||||||||||||||
Total from investment operations | 2.85 | 4.68 | 3.62 | (1.10 | ) | 3.51 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | — | — | 0.03 | — | 0.10 | |||||||||||||||
Net realized gain | 1.09 | 2.19 | 0.14 | 1.96 | 0.48 | |||||||||||||||
Total distributions | 1.09 | 2.19 | 0.17 | 1.96 | 0.58 | |||||||||||||||
Net asset value, end of year | $ | 19.17 | $ | 17.41 | $ | 14.92 | $ | 11.47 | $ | 14.53 | ||||||||||
Total return (%) | 16.55 | 31.50 | 31.57 | (8.23 | ) | 30.31 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.38 | 1.45 | 1.39 | 1.47 | 1.63 | |||||||||||||||
Expenses, net of waivers and reimbursements | 1.15 | 1.15 | 1.20 | 1.33 | 1.37 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | (0.79 | ) | (0.67 | ) | (0.10 | ) | (0.01 | ) | 0.09 | |||||||||||
Net investment income (loss), net of waivers and reimbursements | (0.56 | ) | (0.37 | ) | 0.09 | 0.13 | 0.35 | |||||||||||||
Class N net assets at the end of the year (in thousands) | $ | 13,709 | $ | 11,861 | $ | 8,910 | $ | 7,225 | $ | 7,761 | ||||||||||
Portfolio turnover rate (%) | 18 | 27 | 27 | 49 | 41 | |||||||||||||||
Class I | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 17.47 | $ | 14.93 | $ | 11.47 | $ | 14.56 | $ | 11.62 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.06 | ) | (0.01 | ) | 0.05 | 0.06 | 0.09 | |||||||||||||
Net realized and unrealized gain (loss) on investments | 2.96 | 4.74 | 3.61 | (1.13 | ) | 3.47 | ||||||||||||||
Total from investment operations | 2.90 | 4.73 | 3.66 | (1.07 | ) | 3.56 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | — | 0.00 | ^ | 0.06 | 0.06 | 0.14 | ||||||||||||||
Net realized gain | 1.09 | 2.19 | 0.14 | 1.96 | 0.48 | |||||||||||||||
Total distributions | 1.09 | 2.19 | 0.20 | 2.02 | 0.62 | |||||||||||||||
Net asset value, end of year | $ | 19.28 | $ | 17.47 | $ | 14.93 | $ | 11.47 | $ | 14.56 | ||||||||||
Total return (%) | 16.78 | 31.86 | 31.96 | (8.06 | ) | 30.69 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.07 | 1.12 | 1.07 | 1.15 | 1.33 | |||||||||||||||
Expenses, net of waivers and reimbursements | 0.90 | 0.90 | 0.95 | 1.07 | 1.07 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | (0.49 | ) | (0.31 | ) | 0.22 | 0.31 | 0.39 | |||||||||||||
Net investment income (loss), net of waivers and reimbursements | (0.32 | ) | (0.09 | ) | 0.34 | 0.39 | 0.65 | |||||||||||||
Class I net assets at the end of the year (in thousands) | $ | 124,488 | $ | 107,375 | $ | 114,666 | $ | 83,790 | $ | 60,067 | ||||||||||
Portfolio turnover rate (%) | 18 | 27 | 27 | 49 | 41 |
^ | Amount is less than $0.005 per share. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
166 | Annual Report | December 31, 2021 |
Financial Highlights — For a share outstanding throughout each period
Global Leaders Fund
Class R6 | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 17.47 | $ | 14.93 | $ | 11.47 | $ | 14.56 | $ | 11.62 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.05 | ) | 0.02 | 0.06 | 0.07 | 0.10 | ||||||||||||||
Net realized and unrealized gain (loss) on investments | 2.97 | 4.72 | 3.61 | (1.13 | ) | 3.47 | ||||||||||||||
Total from investment operations | 2.92 | 4.74 | 3.67 | (1.06 | ) | 3.57 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | — | 0.01 | 0.07 | 0.07 | 0.15 | |||||||||||||||
Net realized gain | 1.09 | 2.19 | 0.14 | 1.96 | 0.48 | |||||||||||||||
Total distributions | 1.09 | 2.20 | 0.21 | 2.03 | 0.63 | |||||||||||||||
Net asset value, end of year | $ | 19.30 | $ | 17.47 | $ | 14.93 | $ | 11.47 | $ | 14.56 | ||||||||||
Total return (%) | 16.90 | 31.91 | 32.02 | (7.99 | ) | 30.78 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 0.99 | 1.06 | 1.01 | 1.08 | 1.10 | |||||||||||||||
Expenses, net of waivers and reimbursements | 0.85 | 0.85 | 0.90 | 1.00 | 1.00 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | (0.40 | ) | (0.10 | ) | 0.32 | 0.39 | 0.65 | |||||||||||||
Net investment income (loss), net of waivers and reimbursements | (0.26 | ) | 0.11 | 0.43 | 0.47 | 0.75 | ||||||||||||||
Class R6 net assets at the end of the year (in thousands) | $ | 5,585 | $ | 2,946 | $ | 48,133 | $ | 79,685 | $ | 143,521 | ||||||||||
Portfolio turnover rate (%) | 18 | 27 | 27 | 49 | 41 |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
December 31, 2021 | William Blair Funds | 167 |
Financial Highlights — For a share outstanding throughout each period
International Leaders Fund
Class N | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 22.69 | $ | 18.08 | $ | 13.80 | $ | 16.37 | $ | 12.88 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.12 | ) | (0.04 | ) | 0.09 | 0.13 | 0.11 | |||||||||||||
Net realized and unrealized gain (loss) on investments | 2.35 | 4.82 | 4.25 | (2.19 | ) | 3.70 | ||||||||||||||
Total from investment operations | 2.23 | 4.78 | 4.34 | (2.06 | ) | 3.81 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.00 | ^ | — | 0.06 | 0.06 | 0.20 | ||||||||||||||
Net realized gain | 0.64 | 0.17 | — | 0.45 | 0.12 | |||||||||||||||
Total distributions | 0.64 | 0.17 | 0.06 | 0.51 | 0.32 | |||||||||||||||
Net asset value, end of year | $ | 24.28 | $ | 22.69 | $ | 18.08 | $ | 13.80 | $ | 16.37 | ||||||||||
Total return (%) | 9.93 | 26.45 | 31.46 | (12.70 | ) | 29.65 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.30 | 1.31 | 1.32 | 1.39 | 1.59 | |||||||||||||||
Expenses, net of waivers and reimbursements | 1.15 | 1.15 | 1.18 | 1.28 | 1.35 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | (0.65 | ) | (0.39 | ) | 0.44 | 0.70 | 0.48 | |||||||||||||
Net investment income (loss), net of waivers and reimbursements | (0.50 | ) | (0.23 | ) | 0.58 | 0.81 | 0.72 | |||||||||||||
Class N net assets at the end of the year (in thousands) | $ | 47,234 | $ | 19,586 | $ | 11,163 | $ | 8,715 | $ | 9,651 | ||||||||||
Portfolio turnover rate (%) | 18 | 34 | 20 | 33 | 41 | |||||||||||||||
Class I | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 22.80 | $ | 18.13 | $ | 13.84 | $ | 16.44 | $ | 12.92 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.06 | ) | (0.00 | )^ | 0.12 | 0.17 | 0.16 | |||||||||||||
Net realized and unrealized gain (loss) on investments | 2.36 | 4.85 | 4.27 | (2.19 | ) | 3.71 | ||||||||||||||
Total from investment operations | 2.30 | 4.85 | 4.39 | (2.02 | ) | 3.87 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.05 | 0.01 | 0.10 | 0.13 | 0.23 | |||||||||||||||
Net realized gain | 0.64 | 0.17 | — | 0.45 | 0.12 | |||||||||||||||
Total distributions | 0.69 | 0.18 | 0.10 | 0.58 | 0.35 | |||||||||||||||
Net asset value, end of year | $ | 24.41 | $ | 22.80 | $ | 18.13 | $ | 13.84 | $ | 16.44 | ||||||||||
Total return (%) | 10.17 | 26.77 | 31.76 | (12.45 | ) | 30.05 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 0.99 | 1.01 | 1.01 | 1.07 | 1.28 | |||||||||||||||
Expenses, net of waivers and reimbursements | 0.90 | 0.90 | 0.93 | 1.03 | 1.05 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | (0.33 | ) | (0.11 | ) | 0.64 | 1.02 | 0.86 | |||||||||||||
Net investment income (loss), net of waivers and reimbursements | (0.24 | ) | (0.00 | ) | 0.72 | 1.06 | 1.09 | |||||||||||||
Class I net assets at the end of the year (in thousands) | $ | 591,500 | $ | 393,596 | $ | 181,617 | $ | 76,382 | $ | 60,279 | ||||||||||
Portfolio turnover rate (%) | 18 | 34 | 20 | 33 | 41 |
^ | Amount is less than $0.005 per share. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
168 | Annual Report | December 31, 2021 |
Financial Highlights — For a share outstanding throughout each period
International Leaders Fund
Class R6 | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 22.80 | $ | 18.12 | $ | 13.83 | $ | 16.43 | $ | 12.92 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.04 | ) | 0.02 | 0.14 | 0.18 | 0.18 | ||||||||||||||
Net realized and unrealized gain (loss) on investments | 2.35 | 4.85 | 4.26 | (2.19 | ) | 3.70 | ||||||||||||||
Total from investment operations | 2.31 | 4.87 | 4.40 | (2.01 | ) | 3.88 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.06 | 0.02 | 0.11 | 0.14 | 0.25 | |||||||||||||||
Net realized gain | 0.64 | 0.17 | — | 0.45 | 0.12 | |||||||||||||||
Total distributions | 0.70 | 0.19 | 0.11 | 0.59 | 0.37 | |||||||||||||||
Net asset value, end of year | $ | 24.41 | $ | 22.80 | $ | 18.12 | $ | 13.83 | $ | 16.43 | ||||||||||
Total return (%) | 10.22 | 26.88 | 31.83 | (12.38 | ) | 30.08 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 0.91 | 0.92 | 0.93 | 0.99 | 1.03 | |||||||||||||||
Expenses, net of waivers and reimbursements | 0.85 | 0.85 | 0.88 | 0.95 | 0.95 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | (0.24 | ) | 0.03 | 0.80 | 1.07 | 1.10 | ||||||||||||||
Net investment income (loss), net of waivers and reimbursements | (0.18 | ) | 0.10 | 0.85 | 1.11 | 1.18 | ||||||||||||||
Class R6 net assets at the end of the year (in thousands) | $ | 667,996 | $ | 687,171 | $ | 461,124 | $ | 324,902 | $ | 308,898 | ||||||||||
Portfolio turnover rate (%) | 18 | 34 | 20 | 33 | 41 |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
December 31, 2021 | William Blair Funds | 169 |
Financial Highlights — For a share outstanding throughout each period
International Growth Fund
Class N | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 38.75 | $ | 29.68 | $ | 23.04 | $ | 30.41 | $ | 23.86 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.28 | ) | (0.16 | ) | 0.09 | 0.16 | 0.21 | |||||||||||||
Net realized and unrealized gain (loss) on investments | 3.51 | 9.55 | 6.87 | (5.56 | ) | 6.73 | ||||||||||||||
Total from investment operations | 3.23 | 9.39 | 6.96 | (5.40 | ) | 6.94 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | — | 0.06 | 0.32 | 0.12 | 0.39 | |||||||||||||||
Net realized gain | 4.41 | 0.26 | — | 1.85 | — | |||||||||||||||
Total distributions | 4.41 | 0.32 | 0.32 | 1.97 | 0.39 | |||||||||||||||
Net asset value, end of year | $ | 37.57 | $ | 38.75 | $ | 29.68 | $ | 23.04 | $ | 30.41 | ||||||||||
Total return (%) | 8.68 | 31.64 | 30.24 | (18.00 | ) | 29.11 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.46 | 1.47 | 1.45 | 1.46 | 1.47 | |||||||||||||||
Expenses, net of waivers and reimbursements | 1.45 | 1.45 | 1.45 | 1.45 | 1.45 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | (0.68 | ) | (0.56 | ) | 0.34 | 0.54 | 0.76 | |||||||||||||
Net investment income (loss), net of waivers and reimbursements | (0.67 | ) | (0.54 | ) | 0.34 | 0.55 | 0.78 | |||||||||||||
Class N net assets at the end of the year (in thousands) | $ | 293,481 | $ | 288,976 | $ | 494,788 | $ | 456,533 | $ | 763,740 | ||||||||||
Portfolio turnover rate (%) | 19 | 27 | 34 | 78 | 82 | |||||||||||||||
Class I | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 39.65 | $ | 30.38 | $ | 23.56 | $ | 31.13 | $ | 24.42 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.15 | ) | (0.08 | ) | 0.18 | 0.26 | 0.30 | |||||||||||||
Net realized and unrealized gain (loss) on investments | 3.59 | 9.79 | 7.03 | (5.70 | ) | 6.89 | ||||||||||||||
Total from investment operations | 3.44 | 9.71 | 7.21 | (5.44 | ) | 7.19 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | — | 0.18 | 0.39 | 0.28 | 0.48 | |||||||||||||||
Net realized gain | 4.41 | 0.26 | — | 1.85 | — | |||||||||||||||
Total distributions | 4.41 | 0.44 | 0.39 | 2.13 | 0.48 | |||||||||||||||
Net asset value, end of year | $ | 38.68 | $ | 39.65 | $ | 30.38 | $ | 23.56 | $ | 31.13 | ||||||||||
Total return (%) | 9.01 | 31.99 | 30.66 | (17.73 | ) | 29.49 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses | 1.14 | 1.16 | 1.14 | 1.13 | 1.14 | |||||||||||||||
Net investment income (loss) | (0.36 | ) | (0.24 | ) | 0.65 | 0.86 | 1.08 | |||||||||||||
Class I net assets at the end of the year (in thousands) | $ | 1,702,775 | $ | 1,914,460 | $ | 1,552,355 | $ | 1,646,811 | $ | 2,375,326 | ||||||||||
Portfolio turnover rate (%) | 19 | 27 | 34 | 78 | 82 |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
170 | Annual Report | December 31, 2021 |
Financial Highlights — For a share outstanding throughout each period
International Growth Fund
Class R6 | ||||||||||||
Years Ended December 31, | ||||||||||||
2021 | 2020 | 2019(a) | ||||||||||
Net asset value, beginning of year | $ | 39.66 | $ | 30.37 | $ | 27.56 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income (loss) | (0.11 | ) | (0.07 | ) | (0.05 | ) | ||||||
Net realized and unrealized gain (loss) on investments | 3.58 | 9.83 | 3.27 | |||||||||
Total from investment operations | 3.47 | 9.76 | 3.22 | |||||||||
Less distributions from: | ||||||||||||
Net investment income | — | 0.21 | 0.41 | |||||||||
Net realized gain | 4.41 | 0.26 | — | |||||||||
Total distributions | 4.41 | 0.47 | 0.41 | |||||||||
Net asset value, end of year | $ | 38.72 | $ | 39.66 | $ | 30.37 | ||||||
Total return (%)* | 9.09 | 32.16 | 11.71 | |||||||||
Ratios to average daily net assets (%)**: | ||||||||||||
Expenses | 1.06 | 1.07 | 1.06 | |||||||||
Net investment income (loss) | (0.25 | ) | (0.23 | ) | (0.26 | ) | ||||||
Class R6 net assets at end of year (in thousands) | $ | 126,641 | $ | 109,214 | $ | 61,916 | ||||||
Portfolio turnover rate (%)* | 19 | 27 | 34 |
(a) | For the period from May 2, 2019 (Commencement of Operations) to December 31, 2019. |
* | Rates are not annualized for periods less than a year. |
** | Rates are annualized for periods less than a year. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
December 31, 2021 | William Blair Funds | 171 |
Financial Highlights — For a share outstanding throughout each period
Institutional International Growth Fund
Institutional | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 20.37 | $ | 17.35 | $ | 13.40 | $ | 18.08 | $ | 14.55 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.05 | ) | (0.01 | ) | 0.12 | 0.18 | 0.21 | |||||||||||||
Net realized and unrealized gain (loss) on investments | 1.86 | 5.60 | 4.00 | (3.29 | ) | 4.07 | ||||||||||||||
Total from investment operations | 1.81 | 5.59 | 4.12 | (3.11 | ) | 4.28 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | — | 0.02 | 0.17 | 0.17 | 0.44 | |||||||||||||||
Net realized gain | 3.15 | 2.55 | — | 1.40 | 0.31 | |||||||||||||||
Total distributions | 3.15 | 2.57 | 0.17 | 1.57 | 0.75 | |||||||||||||||
Net asset value, end of year | $ | 19.03 | $ | 20.37 | $ | 17.35 | $ | 13.40 | $ | 18.08 | ||||||||||
Total return (%) | 9.39 | 32.47 | 30.75 | (17.50 | ) | 29.53 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses | 1.01 | 1.00 | 0.99 | 0.97 | 0.97 | |||||||||||||||
Net investment income (loss) | (0.22 | ) | (0.04 | ) | 0.77 | 1.01 | 1.22 | |||||||||||||
Net assets at the end of the year (in thousands) | $ | 1,281,843 | $ | 1,326,482 | $ | 1,892,911 | $ | 1,784,435 | $ | 2,330,299 | ||||||||||
Portfolio turnover rate (%) | 19 | 31 | 35 | 82 | 84 |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
172 | Annual Report | December 31, 2021 |
Financial Highlights — For a share outstanding throughout each period
International Small Cap Growth Fund
Class N | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 17.45 | $ | 13.85 | $ | 10.36 | $ | 15.49 | $ | 12.87 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.12 | ) | (0.05 | ) | 0.05 | 0.04 | 0.12 | |||||||||||||
Net realized and unrealized gain (loss) on investments | 1.91 | 4.01 | 3.45 | (3.78 | ) | 3.98 | ||||||||||||||
Total from investment operations | 1.79 | 3.96 | 3.50 | (3.74 | ) | 4.10 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | — | — | 0.01 | 0.08 | 0.32 | |||||||||||||||
Net realized gain | 2.68 | 0.36 | — | 1.31 | 1.16 | |||||||||||||||
Total distributions | 2.68 | 0.36 | 0.01 | 1.39 | 1.48 | |||||||||||||||
Net asset value, end of year | $ | 16.56 | $ | 17.45 | $ | 13.85 | $ | 10.36 | $ | 15.49 | ||||||||||
Total return (%) | 10.87 | 28.68 | 33.81 | (24.48 | ) | 32.17 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.46 | 1.52 | 1.48 | 1.48 | 1.62 | |||||||||||||||
Expenses, net of waivers and reimbursements | 1.46 | 1.52 | 1.48 | 1.48 | 1.47 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | (0.67 | ) | (0.36 | ) | 0.45 | 0.29 | 0.70 | |||||||||||||
Net investment income (loss), net of waivers and reimbursements | (0.67 | ) | (0.36 | ) | 0.45 | 0.29 | 0.85 | |||||||||||||
Class N net assets at the end of the year (in thousands) | $ | 3,540 | $ | 3,101 | $ | 3,650 | $ | 3,440 | $ | 6,275 | ||||||||||
Portfolio turnover rate (%) | 52 | 63 | 38 | 88 | 64 | |||||||||||||||
Class I | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 17.66 | $ | 13.98 | $ | 10.45 | $ | 15.65 | $ | 13.00 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.07 | ) | (0.01 | ) | 0.09 | 0.09 | 0.14 | |||||||||||||
Net realized and unrealized gain (loss) on investments | 1.93 | 4.06 | 3.48 | (3.84 | ) | 4.07 | ||||||||||||||
Total from investment operations | 1.86 | 4.05 | 3.57 | (3.75 | ) | 4.21 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.04 | 0.01 | 0.04 | 0.14 | 0.40 | |||||||||||||||
Net realized gain | 2.68 | 0.36 | — | 1.31 | 1.16 | |||||||||||||||
Total distributions | 2.72 | 0.37 | 0.04 | 1.45 | 1.56 | |||||||||||||||
Net asset value, end of year | $ | 16.80 | $ | 17.66 | $ | 13.98 | $ | 10.45 | $ | 15.65 | ||||||||||
Total return (%) | 11.17 | 29.04 | 34.22 | (24.29 | ) | 32.70 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.19 | 1.25 | 1.21 | 1.18 | 1.31 | |||||||||||||||
Expenses, net of waivers and reimbursements | 1.19 | 1.25 | 1.21 | 1.18 | 1.16 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | (0.40 | ) | (0.05 | ) | 0.75 | 0.60 | 0.77 | |||||||||||||
Net investment income (loss), net of waivers and reimbursements | (0.40 | ) | (0.05 | ) | 0.75 | 0.60 | 0.92 | |||||||||||||
Class I net assets at the end of the year (in thousands) | $ | 136,573 | $ | 145,283 | $ | 142,951 | $ | 165,451 | $ | 338,920 | ||||||||||
Portfolio turnover rate (%) | 52 | 63 | 38 | 88 | 64 |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
December 31, 2021 | William Blair Funds | 173 |
Financial Highlights — For a share outstanding throughout each period
International Small Cap Growth Fund
Class R6 | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 17.76 | $ | 14.05 | $ | 10.50 | $ | 15.73 | $ | 13.07 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.06 | ) | 0.00 | ^ | 0.11 | 0.10 | 0.15 | |||||||||||||
Net realized and unrealized gain (loss) on investments | 1.95 | 4.09 | 3.49 | (3.85 | ) | 4.08 | ||||||||||||||
Total from investment operations | 1.89 | 4.09 | 3.60 | (3.75 | ) | 4.23 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.06 | 0.02 | 0.05 | 0.17 | 0.41 | |||||||||||||||
Net realized gain | 2.68 | 0.36 | — | 1.31 | 1.16 | |||||||||||||||
Total distributions | 2.74 | 0.38 | 0.05 | 1.48 | 1.57 | |||||||||||||||
Net asset value, end of year | $ | 16.91 | $ | 17.76 | $ | 14.05 | $ | 10.50 | $ | 15.73 | ||||||||||
Total return (%) | 11.27 | 29.23 | 34.32 | (24.19 | ) | 32.70 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses | 1.10 | 1.14 | 1.12 | 1.08 | 1.08 | |||||||||||||||
Net investment income (loss) | (0.31 | ) | 0.02 | 0.86 | 0.67 | 0.99 | ||||||||||||||
Class R6 net assets at the end of the year (in thousands) | $ | 243,398 | $ | 188,497 | $ | 162,465 | $ | 171,833 | $ | 256,558 | ||||||||||
Portfolio turnover rate (%) | 52 | 63 | 38 | 88 | 64 |
^ | Amount is less than $0.005 per share. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
174 | Annual Report | December 31, 2021 |
Financial Highlights — For a share outstanding throughout each period
Emerging Markets Leaders Fund
Class N | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 13.26 | $ | 10.51 | $ | 8.26 | $ | 11.06 | $ | 7.84 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.06 | ) | (0.02 | ) | 0.03 | 0.03 | 0.01 | |||||||||||||
Net realized and unrealized gain (loss) on investments | (0.98 | ) | 2.88 | 2.28 | (1.97 | ) | 3.26 | |||||||||||||
Total from investment operations | (1.04 | ) | 2.86 | 2.31 | (1.94 | ) | 3.27 | |||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.01 | — | 0.04 | 0.07 | 0.05 | |||||||||||||||
Net realized gain | 0.88 | 0.11 | 0.02 | 0.79 | — | |||||||||||||||
Total distributions | 0.89 | 0.11 | 0.06 | 0.86 | 0.05 | |||||||||||||||
Net asset value, end of year | $ | 11.33 | $ | 13.26 | $ | 10.51 | $ | 8.26 | $ | 11.06 | ||||||||||
Total return (%) | (7.69 | ) | 27.23 | 27.98 | (17.73 | ) | 41.68 | |||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.56 | 1.63 | 1.62 | 1.60 | 1.62 | |||||||||||||||
Expenses, net of waivers and reimbursements | 1.40 | 1.40 | 1.45 | 1.58 | 1.47 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | (0.64 | ) | (0.45 | ) | 0.17 | 0.27 | (0.01 | ) | ||||||||||||
Net investment income (loss), net of waivers and reimbursements | (0.48 | ) | (0.22 | ) | 0.34 | 0.29 | 0.14 | |||||||||||||
Class N net assets at the end of the year (in thousands) | $ | 2,096 | $ | 1,803 | $ | 1,856 | $ | 2,239 | $ | 2,766 | ||||||||||
Portfolio turnover rate (%) | 40 | 47 | 33 | 52 | 59 | |||||||||||||||
Class I | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 13.28 | $ | 10.52 | $ | 8.27 | $ | 11.09 | $ | 7.87 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.04 | ) | (0.00 | )^ | 0.06 | 0.06 | 0.02 | |||||||||||||
Net realized and unrealized gain (loss) on investments | (0.98 | ) | 2.89 | 2.29 | (1.97 | ) | 3.27 | |||||||||||||
Total from investment operations | (1.02 | ) | 2.89 | 2.35 | (1.91 | ) | 3.29 | |||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.05 | 0.02 | 0.08 | 0.12 | 0.07 | |||||||||||||||
Net realized gain | 0.88 | 0.11 | 0.02 | 0.79 | — | |||||||||||||||
Total distributions | 0.93 | 0.13 | 0.10 | 0.91 | 0.07 | |||||||||||||||
Net asset value, end of year | $ | 11.33 | $ | 13.28 | $ | 10.52 | $ | 8.27 | $ | 11.09 | ||||||||||
Total return (%) | (7.48 | ) | 27.52 | 28.36 | (17.45 | ) | 41.89 | |||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.28 | 1.33 | 1.29 | 1.27 | 1.40 | |||||||||||||||
Expenses, net of waivers and reimbursements | 1.15 | 1.15 | 1.20 | 1.27 | 1.25 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | (0.40 | ) | (0.21 | ) | 0.53 | 0.58 | 0.09 | |||||||||||||
Net investment income (loss), net of waivers and reimbursements | (0.27 | ) | (0.03 | ) | 0.62 | 0.58 | 0.24 | |||||||||||||
Class I net assets at the end of the year (in thousands) | $ | 42,750 | $ | 62,319 | $ | 45,090 | $ | 34,786 | $ | 47,666 | ||||||||||
Portfolio turnover rate (%) | 40 | 47 | 33 | 52 | 59 |
^ | Amount is less than $0.005 per share. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
December 31, 2021 | William Blair Funds | 175 |
Financial Highlights — For a share outstanding throughout each period
Emerging Markets Leaders Fund
Class R6 | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 13.26 | $ | 10.51 | $ | 8.26 | $ | 11.09 | $ | 7.86 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.02 | ) | 0.00 | ^ | 0.06 | 0.07 | 0.03 | |||||||||||||
Net realized and unrealized gain (loss) on investments | (0.98 | ) | 2.89 | 2.29 | (1.98 | ) | 3.28 | |||||||||||||
Total from investment operations | (1.00 | ) | 2.89 | 2.35 | (1.91 | ) | 3.31 | |||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.06 | 0.03 | 0.08 | 0.13 | 0.08 | |||||||||||||||
Net realized gain | 0.88 | 0.11 | 0.02 | 0.79 | — | |||||||||||||||
Total distributions | 0.94 | 0.14 | 0.10 | 0.92 | 0.08 | |||||||||||||||
Net asset value, end of year | $ | 11.32 | $ | 13.26 | $ | 10.51 | $ | 8.26 | $ | 11.09 | ||||||||||
Total return (%) | (7.35 | ) | 27.50 | 28.45 | (17.46 | ) | 42.15 | |||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.20 | 1.26 | 1.23 | 1.20 | 1.19 | |||||||||||||||
Expenses, net of waivers and reimbursements | 1.10 | 1.10 | 1.15 | 1.20 | 1.19 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | (0.26 | ) | (0.11 | ) | 0.57 | 0.71 | 0.33 | |||||||||||||
Net investment income (loss), net of waivers and reimbursements | (0.16 | ) | 0.05 | 0.65 | 0.71 | 0.33 | ||||||||||||||
Class R6 net assets at the end of the year (in thousands) | $ | 428,839 | $ | 198,015 | $ | 191,337 | $ | 161,889 | $ | 427,480 | ||||||||||
Portfolio turnover rate (%) | 40 | 47 | 33 | 52 | 59 |
^ | Amount is less than $0.005 per share. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
176 | Annual Report | December 31, 2021 |
Financial Highlights — For a share outstanding throughout each period
Emerging Markets Growth Fund
Class N | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 18.42 | $ | 13.67 | $ | 11.14 | $ | 16.20 | $ | 10.99 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.13 | ) | (0.09 | ) | 0.11 | 0.01 | (0.02 | ) | ||||||||||||
Net realized and unrealized gain (loss) on investments | 0.62 | 5.60 | 2.98 | (3.49 | ) | 5.35 | ||||||||||||||
Total from investment operations | 0.49 | 5.51 | 3.09 | (3.48 | ) | 5.33 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | — | — | 0.16 | 0.11 | 0.12 | |||||||||||||||
Net realized gain | 3.36 | 0.76 | 0.40 | 1.47 | — | |||||||||||||||
Total distributions | 3.36 | 0.76 | 0.56 | 1.58 | 0.12 | |||||||||||||||
Net asset value, end of year | $ | 15.55 | $ | 18.42 | $ | 13.67 | $ | 11.14 | $ | 16.20 | ||||||||||
Total return (%) | 2.97 | 40.43 | 27.89 | (21.61 | ) | 48.53 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.55 | 1.55 | 1.51 | 1.52 | 1.65 | |||||||||||||||
Expenses, net of waivers and reimbursements | 1.55 | 1.55 | 1.51 | 1.52 | 1.50 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | (0.65 | ) | (0.60 | ) | 0.84 | 0.09 | (0.29 | ) | ||||||||||||
Net investment income (loss), net of waivers and reimbursements | (0.65 | ) | (0.60 | ) | 0.84 | 0.09 | (0.14 | ) | ||||||||||||
Class N net assets at the end of the year (in thousands) | $ | 28,565 | $ | 18,606 | $ | 7,804 | $ | 7,103 | $ | 10,479 | ||||||||||
Portfolio turnover rate (%) | 52 | 77 | 79 | 113 | 91 | |||||||||||||||
Class I | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 18.66 | $ | 13.82 | $ | 11.25 | $ | 16.36 | $ | 11.10 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.07 | ) | (0.05 | ) | 0.14 | 0.05 | 0.01 | |||||||||||||
Net realized and unrealized gain (loss) on investments | 0.62 | 5.66 | 3.02 | (3.52 | ) | 5.40 | ||||||||||||||
Total from investment operations | 0.55 | 5.61 | 3.16 | (3.47 | ) | 5.41 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | — | 0.01 | 0.19 | 0.17 | 0.15 | |||||||||||||||
Net realized gain | 3.36 | 0.76 | 0.40 | 1.47 | — | |||||||||||||||
Total distributions | 3.36 | 0.77 | 0.59 | 1.64 | 0.15 | |||||||||||||||
Net asset value, end of year | $ | 15.85 | $ | 18.66 | $ | 13.82 | $ | 11.25 | $ | 16.36 | ||||||||||
Total return (%) | 3.25 | 40.72 | 28.29 | (21.37 | ) | 48.83 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.27 | 1.30 | 1.26 | 1.27 | 1.42 | |||||||||||||||
Expenses, net of waivers and reimbursements | 1.27 | 1.30 | 1.26 | 1.27 | 1.27 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | (0.37 | ) | (0.33 | ) | 1.06 | 0.34 | (0.07 | ) | ||||||||||||
Net investment income (loss), net of waivers and reimbursements | (0.37 | ) | (0.33 | ) | 1.06 | 0.34 | 0.08 | |||||||||||||
Class I net assets at the end of the year (in thousands) | $ | 190,985 | $ | 113,697 | $ | 73,496 | $ | 79,427 | $ | 129,481 | ||||||||||
Portfolio turnover rate (%) | 52 | 77 | 79 | 113 | 91 |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
December 31, 2021 | William Blair Funds | 177 |
Financial Highlights — For a share outstanding throughout each period
Emerging Markets Growth Fund
Class R6 | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 18.84 | $ | 13.94 | $ | 11.35 | $ | 16.49 | $ | 11.18 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.05 | ) | (0.03 | ) | 0.15 | 0.07 | 0.02 | |||||||||||||
Net realized and unrealized gain (loss) on investments | 0.63 | 5.71 | 3.04 | (3.56 | ) | 5.46 | ||||||||||||||
Total from investment operations | 0.58 | 5.68 | 3.19 | (3.49 | ) | 5.48 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.02 | 0.02 | 0.20 | 0.18 | 0.17 | |||||||||||||||
Net realized gain | 3.36 | 0.76 | 0.40 | 1.47 | — | |||||||||||||||
Total distributions | 3.38 | 0.78 | 0.60 | 1.65 | 0.17 | |||||||||||||||
Net asset value, end of year | $ | 16.04 | $ | 18.84 | $ | 13.94 | $ | 11.35 | $ | 16.49 | ||||||||||
Total return (%) | 3.37 | 40.90 | 28.28 | (21.29 | ) | 49.06 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses | 1.17 | 1.20 | 1.19 | 1.19 | 1.17 | |||||||||||||||
Net investment income (loss) | (0.27 | ) | (0.22 | ) | 1.17 | 0.46 | 0.17 | |||||||||||||
Class R6 net assets at the end of the year (in thousands) | $ | 822,288 | $ | 1,063,433 | $ | 708,892 | $ | 654,441 | $ | 1,178,853 | ||||||||||
Portfolio turnover rate (%) | 52 | 77 | 79 | 113 | 91 |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
178 | Annual Report | December 31, 2021 |
Financial Highlights — For a share outstanding throughout each period
Emerging Markets Small Cap Growth Fund
Class N | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 22.22 | $ | 16.80 | $ | 13.96 | $ | 18.66 | $ | 13.73 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.20 | ) | (0.06 | ) | 0.00 | ^ | (0.02 | ) | 0.01 | |||||||||||
Net realized and unrealized gain (loss) on investments | 3.53 | 5.48 | 2.84 | (4.38 | ) | 5.46 | ||||||||||||||
Total from investment operations | 3.33 | 5.42 | 2.84 | (4.40 | ) | 5.47 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | — | — | — | — | 0.50 | |||||||||||||||
Net realized gain | 2.03 | — | — | 0.30 | 0.04 | |||||||||||||||
Total distributions | 2.03 | — | — | 0.30 | 0.54 | |||||||||||||||
Net asset value, end of year | $ | 23.52 | $ | 22.22 | $ | 16.80 | $ | 13.96 | $ | 18.66 | ||||||||||
Total return (%) | 15.23 | 32.26 | 20.34 | (23.57 | ) | 40.09 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.60 | 1.77 | 1.71 | 1.70 | 1.83 | |||||||||||||||
Expenses, net of waivers and reimbursements | 1.55 | 1.55 | 1.55 | 1.58 | 1.64 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | (0.88 | ) | (0.58 | ) | (0.14 | ) | (0.22 | ) | (0.11 | ) | ||||||||||
Net investment income (loss), net of waivers and reimbursements | (0.83 | ) | (0.36 | ) | 0.02 | (0.10 | ) | 0.08 | ||||||||||||
Class N net assets at the end of the year (in thousands) | $ | 4,262 | $ | 3,947 | $ | 4,025 | $ | 8,977 | $ | 15,082 | ||||||||||
Portfolio turnover rate (%) | 76 | 119 | 142 | 187 | 183 | |||||||||||||||
Class I | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 22.40 | $ | 16.90 | $ | 14.03 | $ | 18.73 | $ | 13.77 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.14 | ) | (0.02 | ) | 0.04 | 0.03 | 0.08 | |||||||||||||
Net realized and unrealized gain (loss) on investments | 3.56 | 5.53 | 2.86 | (4.41 | ) | 5.47 | ||||||||||||||
Total from investment operations | 3.42 | 5.51 | 2.90 | (4.38 | ) | 5.55 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | — | 0.01 | 0.03 | 0.02 | 0.55 | |||||||||||||||
Net realized gain | 2.03 | — | — | 0.30 | 0.04 | |||||||||||||||
Total distributions | 2.03 | 0.01 | 0.03 | 0.32 | 0.59 | |||||||||||||||
Net asset value, end of year | $ | 23.79 | $ | 22.40 | $ | 16.90 | $ | 14.03 | $ | 18.73 | ||||||||||
Total return (%) | 15.51 | 32.60 | 20.58 | (23.31 | ) | 40.53 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.31 | 1.45 | 1.40 | 1.38 | 1.50 | |||||||||||||||
Expenses, net of waivers and reimbursements | 1.30 | 1.30 | 1.30 | 1.33 | 1.31 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | (0.59 | ) | (0.25 | ) | 0.18 | 0.13 | 0.30 | |||||||||||||
Net investment income (loss), net of waivers and reimbursements | (0.58 | ) | (0.10 | ) | 0.28 | 0.18 | 0.49 | |||||||||||||
Class I net assets at the end of the year (in thousands) | $ | 171,994 | $ | 151,302 | $ | 142,885 | $ | 169,770 | $ | 282,620 | ||||||||||
Portfolio turnover rate (%) | 76 | 119 | 142 | 187 | 183 |
^ | Amount is less than $0.005 per share. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
December 31, 2021 | William Blair Funds | 179 |
Financial Highlights — For a share outstanding throughout each period
Emerging Markets Small Cap Growth Fund
Class R6 | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 22.44 | $ | 16.93 | $ | 14.06 | $ | 18.76 | $ | 13.79 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.12 | ) | (0.00 | )^ | 0.05 | 0.05 | 0.10 | |||||||||||||
Net realized and unrealized gain (loss) on investments | 3.56 | 5.53 | 2.86 | (4.41 | ) | 5.47 | ||||||||||||||
Total from investment operations | 3.44 | 5.53 | 2.91 | (4.36 | ) | 5.57 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.01 | 0.02 | 0.04 | 0.04 | 0.56 | |||||||||||||||
Net realized gain | 2.03 | — | — | 0.30 | 0.04 | |||||||||||||||
Total distributions | 2.04 | 0.02 | 0.04 | 0.34 | 0.60 | |||||||||||||||
Net asset value, end of year | $ | 23.84 | $ | 22.44 | $ | 16.93 | $ | 14.06 | $ | 18.76 | ||||||||||
Total return (%) | 15.58 | 32.66 | 20.69 | (23.24 | ) | 40.62 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.23 | 1.36 | 1.33 | 1.30 | 1.29 | |||||||||||||||
Expenses, net of waivers and reimbursements | 1.23 | 1.25 | 1.25 | 1.25 | 1.25 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | (0.49 | ) | (0.14 | ) | 0.27 | 0.22 | 0.53 | |||||||||||||
Net investment income (loss), net of waivers and reimbursements | (0.49 | ) | (0.03 | ) | 0.35 | 0.27 | 0.57 | |||||||||||||
Class R6 net assets at the end of the year (in thousands) | $ | 324,152 | $ | 152,160 | $ | 130,711 | $ | 98,188 | $ | 166,927 | ||||||||||
Portfolio turnover rate (%) | 76 | 119 | 142 | 187 | 183 |
^ | Amount is less than $0.005 per share. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
180 | Annual Report | December 31, 2021 |
Financial Highlights — For a share outstanding throughout each period
China Growth Fund
Class I | |||||
Period Ended December 31, | |||||
2021(a) | |||||
Net asset value, beginning of year | $10.00 | ||||
Income (loss) from investment operations: | |||||
Net investment income (loss) | (0.04 | ) | |||
Net realized and unrealized gain (loss) on investments | (0.42 | ) | |||
Total from investment operations | (0.46 | ) | |||
Less distributions from: | |||||
Net investment income | — | ||||
Net realized gain | — | ||||
Total distributions | — | ||||
Net asset value, end of year | $9.54 | ||||
Total return (%)* | (4.40 | ) | |||
Ratios to average daily net assets (%)**: | |||||
Expenses, before waivers and reimbursements | 4.74 | ||||
Expenses, net of waivers and reimbursements | 1.05 | ||||
Net investment income (loss), before waivers and reimbursements | (4.69 | ) | |||
Net investment income (loss), net of waivers and reimbursements | (1.00 | ) | |||
Class I net assets at the end of the year (in thousands) | $5,538 | ||||
Portfolio turnover rate (%)* | 4 | ||||
Class R6 | |||||
Period Ended December 31, | |||||
2021(a) | |||||
Net asset value, beginning of year | $10.00 | ||||
Income (loss) from investment operations: | |||||
Net investment income (loss) | (0.03 | ) | |||
Net realized and unrealized gain (loss) on investments | (0.43 | ) | |||
Total from investment operations | (0.46 | ) | |||
Less distributions from: | |||||
Net investment income | — | ||||
Net realized gain | — | ||||
Total distributions | — | ||||
Net asset value, end of year | $9.54 | ||||
Total return (%)* | (4.40 | ) | |||
Ratios to average daily net assets (%)**: | |||||
Expenses, before waivers and reimbursements | 4.72 | ||||
Expenses, net of waivers and reimbursements | 1.00 | ||||
Net investment income (loss), before waivers and reimbursements | (4.61 | ) | |||
Net investment income (loss), net of waivers and reimbursements | (0.89 | ) | |||
Class R6 net assets at the end of the year (in thousands) | $1,687 | ||||
Portfolio turnover rate (%)* | 4 |
(a) | For the period from August 27, 2021 (Commencement of Operations) to December 31, 2021. |
* | Rates are not annualized for periods less than a year. |
** | Rates are annualized for periods less than a year. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
December 31, 2021 | William Blair Funds | 181 |
Financial Highlights — For a share outstanding throughout each period
Bond Fund
Class N | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 10.83 | $ | 10.41 | $ | 9.75 | $ | 10.41 | $ | 10.41 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.17 | 0.24 | 0.30 | 0.31 | 0.27 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.35 | ) | 0.54 | 0.77 | (0.56 | ) | 0.12 | |||||||||||||
Total from investment operations | (0.18 | ) | 0.78 | 1.07 | (0.25 | ) | 0.39 | |||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.27 | 0.36 | 0.41 | 0.41 | 0.39 | |||||||||||||||
Net realized gain | — | — | — | — | — | |||||||||||||||
Total distributions | 0.27 | 0.36 | 0.41 | 0.41 | 0.39 | |||||||||||||||
Net asset value, end of year | $ | 10.38 | $ | 10.83 | $ | 10.41 | $ | 9.75 | $ | 10.41 | ||||||||||
Total return (%) | (1.66 | )† | 7.63 | 11.09 | (2.42 | ) | 3.83 | |||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 0.69 | 0.79 | 0.69 | 0.69 | 0.82 | |||||||||||||||
Expenses, net of waivers and reimbursements | 0.60 | 0.60 | 0.60 | 0.62 | 0.65 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | 1.56 | 2.04 | 2.90 | 3.01 | 2.40 | |||||||||||||||
Net investment income (loss), net of waivers and reimbursements | 1.65 | 2.23 | 2.99 | 3.08 | 2.57 | |||||||||||||||
Class N net assets at the end of the year (in thousands) | $ | 36,369 | $ | 39,522 | $ | 32,176 | $ | 70,253 | $ | 83,662 | ||||||||||
Portfolio turnover rate (%) | 93 | 71 | 58 | 40 | 17 | |||||||||||||||
Class I | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 10.71 | $ | 10.30 | $ | 9.65 | $ | 10.31 | $ | 10.30 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.19 | 0.25 | 0.31 | 0.32 | 0.29 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.34 | ) | 0.54 | 0.76 | (0.56 | ) | 0.13 | |||||||||||||
Total from investment operations | (0.15 | ) | 0.79 | 1.07 | (0.24 | ) | 0.42 | |||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.30 | 0.38 | 0.42 | 0.42 | 0.41 | |||||||||||||||
Net realized gain | — | — | — | — | — | |||||||||||||||
Total distributions | 0.30 | 0.38 | 0.42 | 0.42 | 0.41 | |||||||||||||||
Net asset value, end of year | $ | 10.26 | $ | 10.71 | $ | 10.30 | $ | 9.65 | $ | 10.31 | ||||||||||
Total return (%) | (1.41 | )† | 7.73 | 11.22 | (2.31 | ) | 4.16 | |||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 0.48 | 0.55 | 0.47 | 0.46 | 0.60 | |||||||||||||||
Expenses, net of waivers and reimbursements | 0.45 | 0.45 | 0.45 | 0.46 | 0.43 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | 1.77 | 2.29 | 3.10 | 3.24 | 2.62 | |||||||||||||||
Net investment income (loss), net of waivers and reimbursements | 1.80 | 2.39 | 3.12 | 3.24 | 2.79 | |||||||||||||||
Class I net assets at the end of the year (in thousands) | $ | 211,636 | $ | 232,716 | $ | 206,304 | $ | 281,442 | $ | 384,464 | ||||||||||
Portfolio turnover rate (%) | 93 | 71 | 58 | 40 | 17 |
† | The impact of the Voluntary Payment from Adviser was 0.05%. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
182 | Annual Report | December 31, 2021 |
Financial Highlights — For a share outstanding throughout each period
Bond Fund
Class R6 | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 10.71 | $ | 10.30 | $ | 9.64 | $ | 10.30 | $ | 10.29 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.19 | 0.26 | 0.32 | 0.33 | 0.30 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.34 | ) | 0.53 | 0.76 | (0.56 | ) | 0.13 | |||||||||||||
Total from investment operations | (0.15 | ) | 0.79 | 1.08 | (0.23 | ) | 0.43 | |||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.31 | 0.38 | 0.42 | 0.43 | 0.42 | |||||||||||||||
Net realized gain | — | — | — | — | — | |||||||||||||||
Total distributions | 0.31 | 0.38 | 0.42 | 0.43 | 0.42 | |||||||||||||||
Net asset value, end of year | $ | 10.25 | $ | 10.71 | $ | 10.30 | $ | 9.64 | $ | 10.30 | ||||||||||
Total return (%) | (1.40 | )† | 7.79 | 11.39 | (2.26 | ) | 4.24 | |||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 0.41 | 0.46 | 0.41 | 0.38 | 0.37 | |||||||||||||||
Expenses, net of waivers and reimbursements | 0.40 | 0.40 | 0.40 | 0.38 | 0.35 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | 1.83 | 2.39 | 3.17 | 3.32 | 2.85 | |||||||||||||||
Net investment income (loss), net of waivers and reimbursements | 1.84 | 2.45 | 3.18 | 3.32 | 2.87 | |||||||||||||||
Class R6 net assets at the end of the year (in thousands) | $ | 49,317 | $ | 48,482 | $ | 43,655 | $ | 70,851 | $ | 91,629 | ||||||||||
Portfolio turnover rate (%) | 93 | 71 | 58 | 40 | 17 |
† | The impact of the Voluntary Payment from Adviser was 0.05%. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
December 31, 2021 | William Blair Funds | 183 |
Financial Highlights — For a share outstanding throughout each period
Short Duration Bond Fund (formerly known as Income Fund)
Class N | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 8.71 | $ | 8.57 | $ | 8.36 | $ | 8.72 | $ | 8.86 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.07 | 0.12 | 0.17 | 0.17 | 0.16 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.21 | ) | 0.25 | 0.32 | (0.25 | ) | (0.03 | ) | ||||||||||||
Total from investment operations | (0.14 | ) | 0.37 | 0.49 | (0.08 | ) | 0.13 | |||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.13 | 0.23 | 0.28 | 0.28 | 0.27 | |||||||||||||||
Net realized gain | — | — | — | — | — | |||||||||||||||
Total distributions | 0.13 | 0.23 | 0.28 | 0.28 | 0.27 | |||||||||||||||
Net asset value, end of year | $ | 8.44 | $ | 8.71 | $ | 8.57 | $ | 8.36 | $ | 8.72 | ||||||||||
Total return (%) | (1.62 | )† | 4.34 | 5.92 | (0.86 | ) | 1.46 | |||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.11 | 1.03 | 0.98 | 0.91 | 0.88 | |||||||||||||||
Expenses, net of waivers and reimbursements | 0.78 | 0.85 | 0.85 | 0.85 | 0.85 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | 0.43 | 1.16 | 1.85 | 1.96 | 1.77 | |||||||||||||||
Net investment income (loss), net of waivers and reimbursements | 0.76 | 1.34 | 1.98 | 2.02 | 1.80 | |||||||||||||||
Class N net assets at the end of the year (in thousands) | $ | 14,380 | $ | 22,610 | $ | 19,662 | $ | 22,422 | $ | 39,625 | ||||||||||
Portfolio turnover rate (%) | 111 | 57 | 114 | 97 | 37 | |||||||||||||||
Class I | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 8.65 | $ | 8.52 | $ | 8.30 | $ | 8.66 | $ | 8.80 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.08 | 0.12 | 0.18 | 0.19 | 0.18 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.21 | ) | 0.25 | 0.33 | (0.25 | ) | (0.03 | ) | ||||||||||||
Total from investment operations | (0.13 | ) | 0.37 | 0.51 | (0.06 | ) | 0.15 | |||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.14 | 0.24 | 0.29 | 0.30 | 0.29 | |||||||||||||||
Net realized gain | — | — | — | — | — | |||||||||||||||
Total distributions | 0.14 | 0.24 | 0.29 | 0.30 | 0.29 | |||||||||||||||
Net asset value, end of year | $ | 8.38 | $ | 8.65 | $ | 8.52 | $ | 8.30 | $ | 8.66 | ||||||||||
Total return (%) | (1.49 | )† | 4.39 | 6.24 | (0.69 | ) | 1.68 | |||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 0.87 | 0.78 | 0.74 | 0.65 | 0.62 | |||||||||||||||
Expenses, net of waivers and reimbursements | 0.63 | 0.70 | 0.70 | 0.65 | 0.62 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | 0.67 | 1.35 | 2.10 | 2.22 | 2.03 | |||||||||||||||
Net investment income (loss), net of waivers and reimbursements | 0.91 | 1.43 | 2.14 | 2.22 | 2.03 | |||||||||||||||
Class I net assets at the end of the year (in thousands) | $ | 24,241 | $ | 45,641 | $ | 31,629 | $ | 34,793 | $ | 51,153 | ||||||||||
Portfolio turnover rate (%) | 111 | 57 | 114 | 97 | 37 |
† | The impact of the Voluntary Payment from Adviser was 0.16%. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
184 | Annual Report | December 31, 2021 |
Financial Highlights — For a share outstanding throughout each period
Short Duration Bond Fund (formerly known as Income Fund)
Class R6 | ||||||||||||
Years Ended December 31, | ||||||||||||
2021 | 2020 | 2019(a) | ||||||||||
Net asset value, beginning of year | $ | 8.65 | $ | 8.52 | $ | 8.45 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income (loss) | 0.07 | 0.13 | 0.09 | |||||||||
Net realized and unrealized gain (loss) on investments | (0.19 | ) | 0.24 | 0.18 | ||||||||
Total from investment operations | (0.12 | ) | 0.37 | 0.27 | ||||||||
Less distributions from: | ||||||||||||
Net investment income | 0.15 | 0.24 | 0.20 | |||||||||
Net realized gain | — | — | — | |||||||||
Total distributions | 0.15 | 0.24 | 0.20 | |||||||||
Net asset value, end of year | $ | 8.38 | $ | 8.65 | $ | 8.52 | ||||||
Total return (%)* | (1.44 | )† | 4.44 | 3.18 | ||||||||
Ratios to average daily net assets (%)**: | ||||||||||||
Expenses, before of waivers and reimbursements | 0.82 | 0.73 | 0.71 | |||||||||
Expenses, net waivers and reimbursements | 0.58 | 0.65 | 0.65 | |||||||||
Net investment income (loss), before of waivers and reimbursements | 0.57 | 1.47 | 1.46 | |||||||||
Net investment income (loss), net waivers and reimbursements | 0.81 | 1.55 | 1.52 | |||||||||
Class R6 net assets at end of year (in thousands) | $ | 221 | $ | 71 | $ | 52 | ||||||
Portfolio turnover rate (%)* | 111 | 57 | 114 |
(a) | For the period from May 2, 2019 (Commencement of Operations) to December 31, 2019. |
* | Rates are not annualized for periods less than a year. |
** | Rates are annualized for periods less than a year. |
† | The impact of the Voluntary Payment from Adviser was 0.16%. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
December 31, 2021 | William Blair Funds | 185 |
Financial Highlights — For a share outstanding throughout each period
Ultra-Short Duration Bond Fund (formerly known as Low Duration Fund)
Class N | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 8.65 | $ | 8.68 | $ | 8.70 | $ | 8.92 | $ | 9.07 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.03 | 0.08 | 0.19 | 0.17 | 0.11 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.09 | ) | 0.14 | 0.11 | (0.10 | ) | (0.04 | ) | ||||||||||||
Total from investment operations | (0.06 | ) | 0.22 | 0.30 | 0.07 | 0.07 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.16 | 0.25 | 0.32 | 0.29 | 0.22 | |||||||||||||||
Net realized gain | — | — | — | — | — | |||||||||||||||
Total distributions | 0.16 | 0.25 | 0.32 | 0.29 | 0.22 | |||||||||||||||
Net asset value, end of year | $ | 8.43 | $ | 8.65 | $ | 8.68 | $ | 8.70 | $ | 8.92 | ||||||||||
Total return (%) | (0.73 | )† | 2.56 | 3.48 | 0.80 | 0.84 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 0.76 | 0.84 | 0.75 | 0.72 | 0.79 | |||||||||||||||
Expenses, net of waivers and reimbursements | 0.55 | 0.55 | 0.55 | 0.58 | 0.61 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | 0.09 | 0.60 | 1.96 | 1.83 | 1.04 | |||||||||||||||
Net investment income (loss), net of waivers and reimbursements | 0.30 | 0.89 | 2.16 | 1.97 | 1.22 | |||||||||||||||
Class N net assets at the end of the year (in thousands) | $ | 12,497 | $ | 13,736 | $ | 1,513 | $ | 1,661 | $ | 1,979 | ||||||||||
Portfolio turnover rate (%) | 210 | 72 | 183 | 122 | 109 | |||||||||||||||
Class I | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 8.64 | $ | 8.67 | $ | 8.70 | $ | 8.91 | $ | 9.07 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.04 | 0.10 | 0.20 | 0.19 | 0.13 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.08 | ) | 0.13 | 0.10 | (0.09 | ) | (0.05 | ) | ||||||||||||
Total from investment operations | (0.04 | ) | 0.23 | 0.30 | 0.10 | 0.08 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.17 | 0.26 | 0.33 | 0.31 | 0.24 | |||||||||||||||
Net realized gain | — | — | — | — | — | |||||||||||||||
Total distributions | 0.17 | 0.26 | 0.33 | 0.31 | 0.24 | |||||||||||||||
Net asset value, end of year | $ | 8.43 | $ | 8.64 | $ | 8.67 | $ | 8.70 | $ | 8.91 | ||||||||||
Total return (%) | (0.47 | )† | 2.72 | 3.52 | 1.12 | 0.91 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 0.54 | 0.60 | 0.53 | 0.46 | 0.59 | |||||||||||||||
Expenses, net of waivers and reimbursements | 0.40 | 0.40 | 0.40 | 0.39 | 0.41 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | 0.32 | 0.98 | 2.19 | 2.05 | 1.27 | |||||||||||||||
Net investment income (loss), net of waivers and reimbursements | 0.46 | 1.18 | 2.32 | 2.12 | 1.45 | |||||||||||||||
Class I net assets at the end of the year (in thousands) | $ | 76,364 | $ | 104,093 | $ | 38,156 | $ | 56,120 | $ | 131,186 | ||||||||||
Portfolio turnover rate (%) | 210 | 72 | 183 | 122 | 109 |
† | The impact of the Voluntary Payment from Adviser was 0.16%. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
186 | Annual Report | December 31, 2021 |
Financial Highlights — For a share outstanding throughout each period
Ultra-Short Duration Bond Fund (formerly known as Low Duration Fund)
Class R6 | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 8.64 | $ | 8.68 | $ | 8.70 | $ | 8.91 | $ | 9.07 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.05 | 0.12 | 0.21 | 0.19 | 0.14 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | (0.09 | ) | 0.11 | 0.11 | (0.09 | ) | (0.05 | ) | ||||||||||||
Total from investment operations | (0.04 | ) | 0.23 | 0.32 | 0.10 | 0.09 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.17 | 0.27 | 0.34 | 0.31 | 0.25 | |||||||||||||||
Net realized gain | — | — | — | — | — | |||||||||||||||
Total distributions | 0.17 | 0.27 | 0.34 | 0.31 | 0.25 | |||||||||||||||
Net asset value, end of year | $ | 8.43 | $ | 8.64 | $ | 8.68 | $ | 8.70 | $ | 8.91 | ||||||||||
Total return (%) | (0.42 | )† | 2.65 | 3.69 | 1.15 | 0.96 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 0.49 | 0.53 | 0.50 | 0.42 | 0.40 | |||||||||||||||
Expenses, net of waivers and reimbursements | 0.35 | 0.35 | 0.35 | 0.35 | 0.37 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | 0.40 | 1.19 | 2.22 | 2.10 | 1.48 | |||||||||||||||
Net investment income (loss), net of waivers and reimbursements | 0.54 | 1.37 | 2.37 | 2.17 | 1.51 | |||||||||||||||
Class R6 net assets at the end of the year (in thousands) | $ | 17,290 | $ | 40,551 | $ | 36,846 | $ | 47,585 | $ | 99,912 | ||||||||||
Portfolio turnover rate (%) | 210 | 72 | 183 | 122 | 109 |
† | The impact of the Voluntary Payment from Adviser was 0.16%. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
December 31, 2021 | William Blair Funds | 187 |
Financial Highlights — For a share outstanding throughout each period
Emerging Markets Debt Fund
Class I | |||||
Period Ended December 31, | |||||
2021(a) | |||||
Net asset value, beginning of year | $10.00 | ||||
Income (loss) from investment operations: | |||||
Net investment income (loss) | 0.27 | ||||
Net realized and unrealized gain (loss) on investments | (0.40 | ) | |||
Total from investment operations | (0.13 | ) | |||
Less distributions from: | |||||
Net investment income | 0.28 | ||||
Net realized gain | — | ||||
Total distributions | 0.28 | ||||
Net asset value, end of year | $9.59 | ||||
Total return (%)* | (1.39 | ) | |||
Ratios to average daily net assets (%)**: | |||||
Expenses, before waivers and reimbursements | 1.24 | ||||
Expenses, net of waivers and reimbursements | 0.70 | ||||
Net investment income (loss), before waivers and reimbursements | 4.02 | ||||
Net investment income (loss), net of waivers and reimbursements | 4.56 | ||||
Class I net assets at end of year (in thousands) | $1,484 | ||||
Portfolio turnover rate (%)* | 72 | ||||
Class R6 | |||||
Period Ended December 31, | |||||
2021(a) | |||||
Net asset value, beginning of year | $10.00 | ||||
Income (loss) from investment operations: | |||||
Net investment income (loss) | 0.28 | ||||
Net realized and unrealized gain (loss) on investments | (0.41 | ) | |||
Total from investment operations | (0.13 | ) | |||
Less distributions from: | |||||
Net investment income | 0.28 | ||||
Net realized gain | — | ||||
Total distributions | 0.28 | ||||
Net asset value, end of year | $9.59 | ||||
Total return (%)* | (1.32 | ) | |||
Ratios to average daily net assets (%)**: | |||||
Expenses, before waivers and reimbursements | 1.17 | ||||
Expenses, net of waivers and reimbursements | 0.65 | ||||
Net investment income (loss), before waivers and reimbursements | 4.10 | ||||
Net investment income (loss), net of waivers and reimbursements | 4.62 | ||||
Class R6 net assets at end of year (in thousands) | $50,010 | ||||
Portfolio turnover rate (%)* | 72 |
(a) | For the period from May 25, 2021 (Commencement of Operations) to December 31, 2021. |
* | Rates are not annualized for periods less than a year. |
** | Rates are annualized for periods less than a year. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
188 | Annual Report | December 31, 2021 |
Financial Highlights — For a share outstanding throughout each period
Macro Allocation Fund
Class N | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 10.93 | $ | 11.44 | $ | 11.41 | $ | 11.84 | $ | 11.34 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.07 | 0.04 | 0.08 | 0.08 | 0.06 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.06 | (0.44 | ) | 0.37 | (0.24 | ) | 0.51 | |||||||||||||
Total from investment operations | 0.13 | (0.40 | ) | 0.45 | (0.16 | ) | 0.57 | |||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.24 | 0.11 | 0.42 | 0.27 | 0.07 | |||||||||||||||
Net realized gain | — | — | — | — | — | |||||||||||||||
Total distributions | 0.24 | 0.11 | 0.42 | 0.27 | 0.07 | |||||||||||||||
Net asset value, end of year | $ | 10.82 | $ | 10.93 | $ | 11.44 | $ | 11.41 | $ | 11.84 | ||||||||||
Total return (%) | 1.15 | (3.49 | ) | 3.97 | (1.30 | ) | 5.06 | |||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.39 | 1.36 | 1.22 | 1.30 | 1.52 | |||||||||||||||
Expenses, net of waivers and reimbursements | 1.28 | 1.26 | 1.22 | 1.30 | 1.37 | |||||||||||||||
Expenses (excluding interest or short dividend expense), net of waivers and reimbursements | 1.25 | 1.25 | 1.21 | 1.28 | 1.31 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | 0.54 | 0.26 | 0.70 | 0.66 | 0.35 | |||||||||||||||
Net investment income (loss), net of waivers and reimbursements | 0.65 | 0.36 | 0.70 | 0.66 | 0.50 | |||||||||||||||
Class N net assets at the end of the year (in thousands) | $ | 6,673 | $ | 7,674 | $ | 13,717 | $ | 43,463 | $ | 41,483 | ||||||||||
Portfolio turnover rate (%) | 70 | 29 | 31 | 36 | 43 | |||||||||||||||
Class I | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 10.85 | $ | 11.35 | $ | 11.38 | $ | 11.88 | $ | 11.38 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.08 | 0.06 | 0.13 | 0.11 | 0.11 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.08 | (0.42 | ) | 0.34 | (0.24 | ) | 0.51 | |||||||||||||
Total from investment operations | 0.16 | (0.36 | ) | 0.47 | (0.13 | ) | 0.62 | |||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.27 | 0.14 | 0.50 | 0.37 | 0.12 | |||||||||||||||
Net realized gain | — | — | — | — | — | |||||||||||||||
Total distributions | 0.27 | 0.14 | 0.50 | 0.37 | 0.12 | |||||||||||||||
Net asset value, end of year | $ | 10.74 | $ | 10.85 | $ | 11.35 | $ | 11.38 | $ | 11.88 | ||||||||||
Total return (%) | 1.41 | (3.15 | ) | 4.14 | (1.08 | ) | 5.50 | |||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.12 | 1.04 | 0.97 | 0.99 | 1.17 | |||||||||||||||
Expenses, net of waivers and reimbursements | 1.03 | 1.01 | 0.97 | 0.99 | 1.02 | |||||||||||||||
Expenses (excluding interest or short dividend expense), net of waivers and reimbursements | 1.00 | 1.00 | 0.96 | 0.97 | 0.96 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | 0.66 | 0.56 | 1.09 | 0.95 | 0.75 | |||||||||||||||
Net investment income (loss), net of waivers and reimbursements | 0.75 | 0.59 | 1.09 | 0.95 | 0.90 | |||||||||||||||
Class I net assets at the end of the year (in thousands) | $ | 67,139 | $ | 171,153 | $ | 358,935 | $ | 486,543 | $ | 780,075 | ||||||||||
Portfolio turnover rate (%) | 70 | 29 | 31 | 36 | 43 |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
December 31, 2021 | William Blair Funds | 189 |
Financial Highlights — For a share outstanding throughout each period
Macro Allocation Fund
Class R6 | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||
Net asset value, beginning of year | $ | 10.85 | $ | 11.36 | $ | 11.38 | $ | 11.89 | $ | 11.40 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.10 | 0.08 | 0.14 | 0.13 | 0.12 | |||||||||||||||
Net realized and unrealized gain (loss) on investments | 0.07 | (0.44 | ) | 0.34 | (0.24 | ) | 0.51 | |||||||||||||
Total from investment operations | 0.17 | (0.36 | ) | 0.48 | (0.11 | ) | 0.63 | |||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.28 | 0.15 | 0.50 | 0.40 | 0.14 | |||||||||||||||
Net realized gain | — | — | — | — | — | |||||||||||||||
Total distributions | 0.28 | 0.15 | 0.50 | 0.40 | 0.14 | |||||||||||||||
Net asset value, end of year | $ | 10.74 | $ | 10.85 | $ | 11.36 | $ | 11.38 | $ | 11.89 | ||||||||||
Total return (%) | 1.48 | (3.13 | ) | 4.29 | (0.94 | ) | 5.51 | |||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.01 | 0.93 | 0.89 | 0.91 | 0.92 | |||||||||||||||
Expenses, net of waivers and reimbursements | 0.98 | 0.93 | 0.89 | 0.91 | 0.92 | |||||||||||||||
Expenses (excluding interest or short dividend expense), net of waivers and reimbursements | 0.95 | 0.92 | 0.88 | 0.89 | 0.86 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | 0.91 | 0.70 | 1.23 | 1.10 | 1.04 | |||||||||||||||
Net investment income (loss), net of waivers and reimbursements | 0.94 | 0.70 | 1.23 | 1.10 | 1.04 | |||||||||||||||
Class R6 net assets at the end of the year (in thousands) | $ | 114,984 | $ | 174,888 | $ | 378,148 | $ | 391,812 | $ | 487,082 | ||||||||||
Portfolio turnover rate (%) | 70 | 29 | 31 | 36 | 43 |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
190 | Annual Report | December 31, 2021 |
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and the Board of Trustees of William Blair Funds
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities of William Blair Funds (the “Trust”) (comprising Growth Fund, Large Cap Growth Fund, Mid Cap Growth Fund, Small-Mid Cap Core Fund, Small-Mid Cap Growth Fund, Small Cap Growth Fund, Small Cap Value Fund, Global Leaders Fund, International Leaders Fund, International Growth Fund, Institutional International Growth Fund, International Small Cap Growth Fund, Emerging Markets Leaders Fund, Emerging Markets Growth Fund, Emerging Markets Small Cap Growth Fund, China Growth Fund, Bond Fund, Short Duration Bond Fund (formerly Income Fund), Ultra-Short Duration Bond Fund (formerly Low Duration Fund), Emerging Markets Debt Fund, and Macro Allocation Fund (collectively referred to as the “Funds”)), including the portfolios of investments, as of December 31, 2021, and the related statements of operations and changes in net assets, and the financial highlights for each of the periods indicated in the table below and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds comprising William Blair Funds at December 31, 2021, the results of their operations, changes in net assets and financial highlights for each of the periods indicated in the table below, in conformity with U.S. generally accepted accounting principles.
Funds comprising William Blair Funds | Statement of operations | Statement of changes in net assets | Financial highlights |
Growth Fund Large Cap Growth Fund Mid Cap Growth Fund Small-Mid Cap Growth Fund Small Cap Growth Fund Global Leaders Fund International Leaders Fund International Growth Fund Institutional International Growth Fund International Small Cap Growth Fund Emerging Markets Leaders Fund Emerging Markets Growth Fund Emerging Markets Small Cap Growth Fund Bond Fund Short Duration Bond Fund (formerly Income Fund) Ultra-Short Duration Bond Fund (formerly Low Duration Fund) Macro Allocation Fund | For the year ended December 31, 2021 | For each of the two years in the period ended December 31, 2021 | For each of the five years in the period ended December 31, 2021 |
Small-Mid Cap Core Fund | For the year ended December 31, 2021 | For each of the two years in the period ended December 31, 2021 | For each of the two years in the period ended December 31, 2021 and the period from October 1, 2019 (commencement of operations) through December 31, 2019 |
Emerging Markets Debt Fund | For the period from May 25, 2021 (commencement of operations) through December 31, 2021 | ||
China Growth Fund | For the period from August 27, 2021 (commencement of operations) through December 31, 2021 | ||
Small Cap Value Fund | For the period from November 1, 2021 through December 31, 2021 and for the year ended October 31, 2021 |
December 31, 2021 | William Blair Funds | 191 |
The statement of changes in net assets for the year ended October 31, 2020 and the financial highlights for each of the four years in the period ended October 31, 2020 for the Small Cap Value Fund were audited by other auditors whose report dated December 21, 2020, expressed an unqualified opinion on the statement of changes in net assets and the financial highlights.
Basis for Opinion
These financial statements are the responsibility of the Trust’s management. Our responsibility is to express an opinion on each of the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2021, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more William Blair investment companies since 1989.
Chicago, Illinois
February 25, 2022
192 | Annual Report | December 31, 2021 |
APPROVAL OF THE MANAGEMENT AGREEMENT FOR THE WILLIAM BLAIR CHINA GROWTH FUND
On April 28, 2021, the Board of Trustees (the “Board”) of William Blair Funds (the “Trust”), including the Trustees who are not interested persons of the Trust as defined by the Investment Company Act of 1940, as amended (the “Independent Trustees”), approved the management agreement between the Trust, on behalf of the William Blair China Growth Fund (the “Fund”), and William Blair Investment Management, LLC (the “Adviser”). The Independent Trustees met independently of Trust management and the interested Trustees of the Trust to consider the approval of the management agreement. The Independent Trustees reviewed materials provided by the Adviser and Broadridge for the approval of the management agreement and were assisted by independent legal counsel in making their determination. The Board determined that, given the totality of the information provided with respect to the management agreement, the Board had received sufficient information to consider the approval of the management agreement. The Board considered the following factors in making its determination, but did not identify any single factor or group of factors as all important or controlling and considered all factors together.
Nature, Quality and Extent of Services. In evaluating the nature, quality and extent of the services expected to be provided by the Adviser to the Fund, the Board noted that the Adviser is a quality firm with a reputation for integrity and honesty that employs high quality people. The Board considered biographical information about the Fund’s portfolio managers and financial information regarding the Adviser. The Board considered the proposed portfolio management team members’ previous experience investing in China. The Board also considered the Adviser’s experience in managing new funds and investing in China. Based upon all relevant factors, the Board concluded that the nature, quality and extent of the services to be provided by the Adviser to the Fund were expected to be satisfactory.
Fees and Expenses. The Board reviewed the proposed advisory fee for the Fund and reviewed information comparing the advisory fee to a peer group and a peer universe of institutional funds provided by Broadridge. The Broadridge peer group consisted of the Fund and six other (no-load) institutional China region funds with no Rule 12b-1 fees, as classified by Broadridge. The Broadridge peer universe consisted of the Fund, the Fund’s Broadridge peer group and all other institutional China region funds, excluding outliers. In considering the information, the Board noted that the proposed advisory fee for the Fund was below the average contractual management fee, and same as the median contractual management fee of the peer group. The Board also considered that the Adviser had proposed to limit total operating expenses, including waiving advisory fees for each share class of the Fund until April 30, 2023. On the basis of the information provided, the Board concluded that the proposed advisory fee was reasonable in light of the nature, quality and extent of services expected to be provided by the Adviser.
Profitability. With respect to the estimated profitability of the Management Agreement to the Adviser, the Board considered the proposed advisory fee, that the Fund was newly organized, the amount of assets under management that the Adviser initially expected in the Fund and the Adviser’s agreement to limit total expenses until April 30, 2023. The Board considered that the Adviser will be incurring all expenses related to the organization of the Fund. The Board concluded that the expected profits to be realized by the Adviser were not expected to be unreasonable.
Economies of Scale. The Board considered the extent to which economies of scale would be realized as the Fund grows and whether fee levels reflect these economies of scale for the benefit of investors. In considering whether fee levels reflect economies of scale for the benefit of Fund investors, the Board reviewed the Fund’s advisory fee compared to peer funds and the Fund’s estimated expense ratios giving effect to the Adviser’s agreement to limit total expenses until April 30, 2023, and concluded that the advisory fee was reasonable.
Other Benefits to the Adviser. The Board considered benefits to be derived by the Adviser from its relationship with the Fund, including receipt of research from brokerage firms; for Class I shares, reimbursement of some intermediary fees in the nature of sub-transfer agency fees and favorable media coverage. The Board concluded that, after taking into account these benefits, the proposed advisory fee was reasonable.
Conclusion. Based upon all of the information considered and the conclusions reached, the Board determined that the terms of the Management Agreement are fair and reasonable and that the approval of the Management Agreement is in the best interests of the Fund.
December 31, 2021 | William Blair Funds | 193 |
Trustees and Officers (Unaudited).† The trustees and officers of the William Blair Funds, their year of birth, their principal occupations during the last five years, their affiliations, if any, with William Blair, and other significant affiliations are set forth below. The address of each officer and trustee is 150 North Riverside Plaza, Chicago, Illinois 60606.
Name and Year of Birth | Position(s) Held with Trust | Term of Office(1) and Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Trust Complex Overseen by Trustee* | Other Directorships Held by Trustee During Past 5 Years** | |||||
Interested Trustees | ||||||||||
Stephanie G. Braming, CFA, 1970(2) | Chairman of the Board and President, previously Senior Vice President | Chairman of the Board and President since 2018, and Senior Vice President 2014 to 2018 | Global Head of Investment Management since 2017, portfolio manager (2014 to 2017) and Partner, William Blair | 21 | Chairman, William Blair SICAV | |||||
Cissie Citardi, 1975(2) | Trustee | Since 2021 | General Counsel (since 2021), Deputy General Counsel (May 2020 to December 2020) and Partner, William Blair; formerly, General Counsel, PineBridge Investments (2016-2020) | 21 | Director, William Blair SICAV | |||||
Non-Interested Trustees | ||||||||||
Vann A. Avedisian, 1964 | Trustee | Since 2012 | Co-founder and Partner, Newbond Holdings (real estate operations) (since 2021); formerly, Principal, Highgate Holdings (hotel investments) (2009-2021); co-founder and Managing Director, Oxford Capital Partners Inc. (1994 to 2006) | 21 | Potbelly Sandwich Works (2001 to 2015 and since 2021) | |||||
Kathleen T. Barr, 1955 | Trustee | Since 2013 | Retired; Chairman of the Governing Council, Independent Directors Council (since 2020); formerly, President, Productive Capital Management, Inc. (registered investment adviser to public entities) and Owner, KT Barr Consulting, LLC (mutual fund and investment management consulting) (2010 to 2013); prior thereto, Chief Administrative Officer, Senior Vice President and Senior Managing Director of Allegiant Asset Management Company (merged with PNC Capital Advisors, LLC in 2009) (2004 to 2010) | 21 | Muzinich BDC, Inc. (since 2019); Board of Governors, Investment Company Institute (since 2019); Professionally Managed Portfolios (since 2018) |
† | William Blair Investment Management, LLC and William Blair & Company, L.L.C. are collectively referred to in this section as “William Blair”, each of which is a wholly owned subsidiary of WBC Holdings, L.P., which is wholly owned by certain William Blair employees (employee owners are referred to as ‘partners’). |
* | The number shown does not include four additional series of the Trust that are in existence, but not currently offered to the public. |
** | Includes directorships of public companies and other registered investment companies held during the past five years. |
194 | Annual Report | December 31, 2021 |
Name and Year of Birth | Position(s) Held with Trust | Term of Office(1) and Length of Time Served | Principal Occupation(s) During Past 5 Years | Number of Portfolios in Trust Complex Overseen by Trustee* | Other Directorships Held by Trustee During Past 5 Years** | |||||
Daniel N. Leib, 1966(3) | Trustee | Since 2016 | Chief Executive Officer, Donnelley Financial Solutions, Inc. (since 2016); formerly, Executive Vice President and Chief Financial Officer (2011 to 2016) and Group Chief Financial Officer (2009 to 2011), R.R. Donnelley & Sons Company | 21 | Donnelley Financial Solutions, Inc. (since 2016) | |||||
Dorri C. McWhorter, 1973 | Trustee | Since 2019 | President and Chief Executive Officer, YMCA of Metropolitan Chicago (since 2021); formerly, Chief Executive Officer, YWCA Metropolitan Chicago (2013 to 2021); Partner, Crowe LLP (2008 to 2013)(4) | 21 | Skyway Concession Company, LLC (since 2018); Illinois CPA Society (since 2017); Lifeway Foods, Inc. (since 2020); American Institute of Certified Public Accountants (2013 to 2016); Chicago Finance Exchange (2009 to 2017) | |||||
Thomas J. Skelly, 1951 | Trustee | Since 2007 | Advisory Board Member for various U.S. companies (since 2005); formerly, Managing Partner of various divisions at Accenture (1994 to 2004) | 21 | Mutual Trust Financial Group (provider of insurance and investment products) | |||||
Steven R. Zenz, 1954 | Trustee | Since 2018 | Consultant, Steven R. Zenz Consulting LLC (merger and acquisition transactions and SEC reporting and filings) (since 2011); formerly, Partner, KPMG LLP (1987 to 2010)(5) | 21 | Engine Media Holdings, Inc. (media group supporting esports, news streaming and gaming) (2020 to 2021); Frankly Inc. (technology products/services for media industry) (2016 to 2020); Insignia Systems, Inc. (in-store advertising services for consumer packaged goods manufacturers) (2013 to 2019) |
(1) | Each Trustee serves until the election and qualification of a successor, or until death, resignation or retirement, or removal as provided in the Trust’s Declaration of Trust. Retirement for Independent Trustees occurs no later than at the conclusion of the calendar year that occurs after the earlier of (a) the Independent Trustee’s 75th birthday or (b) the 17th anniversary of the date that the Independent Trustee became a member of the Board of Trustees. |
(2) | Ms. Braming and Ms. Citardi are interested persons of the Trust because they are partners of William Blair, and with respect to Ms. Braming also due to her position as an officer of the Trust. |
(3) | The Trust and William Blair use Donnelley Financial Solutions, Inc. (“DFS’’) for financial printing and other services. DFS is a public company. The Trust and William Blair in the aggregate paid DFS approximately $188,000 and $214,000 in 2019 and 2020, respectively, for the services provided. DFS’s revenue was approximately $900 million in 2019 and $895 million in 2020. Mr. Leib, as the Chief Executive Officer of DFS, is not directly involved in any of the services provided to the Trust or William Blair and his compensation is not materially affected by the fees DFS receives from the Trust and William Blair. |
(4) | As a former partner of the audit firm Crowe LLP (formerly, Crowe Horwath LLP), Ms. McWhorter received distributions of her capital in the firm over time and those distributions were completed in March 2021. The Trust and William Blair made no payments to Crowe LLP over the past three years. |
(5) | The Trust engages KPMG to provide foreign tax services in Taiwan. KPMG does not provide audit or audit-related services to the Trust. Mr. Zenz is a former partner of KPMG and receives pension/retirement funds from KPMG. |
December 31, 2021 | William Blair Funds | 195 |
Name and Year of Birth | Position(s) Held with Trust | Term of Office and Length of Time Served(1) | Principal Occupation(s) During Past 5 Years | |||
Officers | ||||||
Alaina Anderson, CFA, 1975 | Senior Vice President | Since 2021 | Partner, William Blair | |||
Marcelo Assalin, CFA, 1973 | Senior Vice President | Since 2020 | Partner, William Blair (since 2022); formerly, Associate, William Blair; formerly, NN Investment Partners (2013-2020) | |||
Thomas Clarke, 1968 | Senior Vice President | Since 2011 | Partner, William Blair | |||
Daniel Crowe, CFA, 1972 | Senior Vice President | Since 2016 | Partner, William Blair | |||
Robert J. Duwa, CFA, 1967 | Senior Vice President | Since 2019 | Partner, William Blair | |||
Simon Fennell, 1969 | Senior Vice President | Since 2013 | Partner, William Blair | |||
Andrew G. Flynn, CFA, 1961 | Senior Vice President | Since 2013 | Partner, William Blair | |||
David C. Fording, CFA, 1967 | Senior Vice President | Since 2006 | Partner, William Blair | |||
James S. Golan, CFA, 1961 | Senior Vice President | Since 2005 | Partner, William Blair | |||
William V. Heaphy, CFA, 1967 | Senior Vice President | Since 2021 | Associate, William Blair (since 2021); formerly, Principal, Investment Counselors of Maryland, LLC (1994-2021) | |||
James E. Jones, CFA, 1977 | Senior Vice President | Since 2019 | Partner, William Blair | |||
Kenneth J. McAtamney, 1966 | Senior Vice President | Since 2008 | Partner, William Blair | |||
Todd M. McClone, CFA, 1968 | Senior Vice President | Since 2005 | Partner, William Blair | |||
D.J. Neiman, CFA, 1975 | Senior Vice President | Since 2021 | Partner, William Blair | |||
Casey K. Preyss, CFA, 1976 | Senior Vice President | Since 2015 | Partner, William Blair | |||
David P. Ricci, CFA, 1958 | Senior Vice President | Since 2006 | Partner, William Blair | |||
Lisa D. Rusch, 1970 | Senior Vice President Vice President | Since 2020 2018-2020 | Partner, William Blair (since 2020); formerly, Associate, William Blair | |||
Hugo Scott-Gall, 1971 | Senior Vice President | Since 2021 | Partner, William Blair (since 2018); formerly, Managing Director, Goldman Sachs (1998-2018) | |||
Ward D. Sexton, CFA, 1974 | Senior Vice President | Since 2016 | Partner, William Blair |
196 | Annual Report | December 31, 2021 |
Name and Year of Birth | Position(s) Held with Trust | Term of Office and Length of Time Served(1) | Principal Occupation(s) During Past 5 Years | |||
Andrew Siepker, CFA, 1981 | Senior Vice President | Since 2022 | Partner, William Blair (since 2019); formerly, Associate, William Blair | |||
Brian D. Singer, CFA, 1960 | Senior Vice President | Since 2011 | Partner, William Blair | |||
Mark C. Thompson, CFA, 1976 | Senior Vice President | Since 2020 | Partner, William Blair | |||
Vivian Lin Thurston, CFA, 1972 | Senior Vice President | Since 2021 | Partner, William Blair | |||
Dan Zelazny, 1971 | Senior Vice President | Since 2019 | Associate, William Blair (since 2019); formerly, Managing Director, AQR Capital Management (2011-2019) | |||
Matthew Fleming, CFA, 1973 | Vice President | Since 2022 | Associate, William Blair (since 2021); formerly, Investment Counselors of Maryland, LLC (2008-2021) | |||
Kathleen M. Lynch, CFA, 1971 | Vice President | Since 2020 | Associate, William Blair | |||
Vesta Marks, CFA, CAIA, 1978 | Vice President | Since 2021 | Associate, William Blair (since 2021); formerly, Managing Director, Tortoise Capital Advisors (2018-2021), Executive Director, Palmer Square Capital Management LLC (2015-2018) | |||
Gary J. Merwitz, 1970 | Vice President | Since 2021 | Associate, William Blair (since 2021); formerly, Principal, Investment Counselors of Maryland, LLC (2004-2021) | |||
Marco Ruijer, CFA, 1975 | Vice President | Since 2020 | Associate, William Blair (since 2020); formerly, NN Investment Partners (2013-2020) | |||
John M. Raczek, 1970 | Treasurer Assistant Treasurer | Since 2019 2010-2019 | Associate, William Blair | |||
Andrew T. Pfau, 1970 | Secretary | Since 2009 | Associate, William Blair | |||
David M. Cihak, 1982 | Assistant Treasurer | Since 2019 | Associate, William Blair | |||
Walter R. Randall, Jr., 1960 | Chief Compliance Officer and Assistant Secretary | Since 2009 | Associate, William Blair |
(1) | The Trust’s officers, except the Chief Compliance Officer, are elected annually by the Board of Trustees. The Trust’s Chief Compliance Officer is designated by the Board of Trustees and may only be removed by action of the Board of Trustees, including a majority of independent trustees. Length of Time Served for all officers indicates the year the individual became an officer of the Trust. |
The Statement of Additional Information for the William Blair Funds includes additional information about the trustees and is available without charge by calling 1-800-635-2886 (in Massachusetts 1-800-635-2840) or by writing the Fund.
December 31, 2021 | William Blair Funds | 197 |
(Unaudited)
Proxy Voting
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities and information regarding how the Funds voted proxies relating to portfolio securities for the most recent 12-month period ended June 30 are available without charge, upon request, by calling 1-800-635-2886 (in Massachusetts 1-800-635-2840), at www.williamblairfunds.com and on the SEC’s website at http://www.sec.gov.
Quarterly Portfolio Schedules
Each Fund files its complete schedule of portfolio holdings with the SEC for the first and third fiscal quarters of each fiscal year (quarters ended March 31 and September 30) on Form N-PORT. The Funds’ Forms N-PORT are available on the SEC’s website at http://www.sec.gov.
Additional Federal Income Tax Information: (unaudited)
Under Section 852(b)(3)(C) of the Code, the Funds hereby designate the following amounts as capital gain dividends for the fiscal year ended December 31, 2021 (in thousands):
Fund | Capital Gain Dividend | ||||
Growth | $ | 33,127 | |||
Large Cap Growth | 50,399 | ||||
Mid Cap Growth | 9,883 | ||||
Small-Mid Cap Growth | 494,676 | ||||
Small Cap Growth | 96,453 | ||||
Small Cap Value | 66,686 | ||||
Global Leaders | 8,080 | ||||
International Leaders | 39,526 | ||||
International Growth | 243,841 | ||||
Institutional International Growth | 180,725 | ||||
International Small Cap Growth | 53,095 | ||||
Emerging Markets Leaders | 38,180 | ||||
Emerging Markets Growth | 222,451 | ||||
Emerging Markets Small Cap Growth | 43,773 |
198 | Annual Report | December 31, 2021 |
Useful Information About Your Report (Unaudited)
Please refer to this information when reviewing the Expense Example for each Fund.
Expense Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees, distribution (12b-1) fees (for Class N shares, as applicable), and other Fund expenses. The example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare the Fund’s 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period from July 1, 2021 to December 31, 2021.
Actual Expenses
In each example, the first line for each share class in the table provides information about the actual account values and actual expenses. These expenses reflect the effect of any expense cap applicable to the share class during the period. Without this expense cap, the costs shown in the table would have been higher. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During the Period” to estimate the expenses you paid on your account during the period.
Hypothetical Example for Comparison Purposes
In each example, the second line for each share class in the table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses. This is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate your actual ending account balance or the expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund to the costs of investing in other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds.
Please note that the expenses shown in both examples are meant to highlight your ongoing costs only and do not reflect any transactional costs or account type fees, such as IRA administration fees. These fees are discussed in the prospectus. Therefore, the second line of each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative costs of owning different funds. In addition, if these transactional costs or account fees were included, your costs would have been higher.
December 31, 2021 | William Blair Funds | 199 |
Expense Example | Beginning Account Value 7/1/2021 | Ending Account Value 12/31/2021 | Expenses Paid During the Period (a) | Annualized Expense Ratio | ||||||||||||
Growth Fund | ||||||||||||||||
Class N-actual return | $ | 1,000.00 | $ | 1,079.51 | $ | 6.29 | 1.20 | % | ||||||||
Class N-hypothetical 5% return | $ | 1,000.00 | $ | 1,043.95 | $ | 6.18 | 1.20 | |||||||||
Class I-actual return | $ | 1,000.00 | $ | 1,081.81 | $ | 4.67 | 0.89 | |||||||||
Class I-hypothetical 5% return | $ | 1,000.00 | $ | 1,045.51 | $ | 4.59 | 0.89 | |||||||||
Class R6-actual return | $ | 1,000.00 | $ | 1,081.51 | $ | 4.41 | 0.84 | |||||||||
Class R6-hypothetical 5% return | $ | 1,000.00 | $ | 1,045.77 | $ | 4.33 | 0.84 | |||||||||
Large Cap Growth Fund | ||||||||||||||||
Class N-actual return | $ | 1,000.00 | $ | 1,121.33 | $ | 4.81 | 0.90 | |||||||||
Class N-hypothetical 5% return | $ | 1,000.00 | $ | 1,045.46 | $ | 4.64 | 0.90 | |||||||||
Class I-actual return | $ | 1,000.00 | $ | 1,123.05 | $ | 3.48 | 0.65 | |||||||||
Class I-hypothetical 5% return | $ | 1,000.00 | $ | 1,046.72 | $ | 3.35 | 0.65 | |||||||||
Class R6-actual return | $ | 1,000.00 | $ | 1,123.18 | $ | 3.21 | 0.60 | |||||||||
Class R6-hypothetical 5% return | $ | 1,000.00 | $ | 1,046.98 | $ | 3.10 | 0.60 | |||||||||
Mid Cap Growth Fund | ||||||||||||||||
Class N-actual return | $ | 1,000.00 | $ | 1,043.73 | $ | 6.18 | 1.20 | |||||||||
Class N-hypothetical 5% return | $ | 1,000.00 | $ | 1,043.95 | $ | 6.18 | 1.20 | |||||||||
Class I-actual return | $ | 1,000.00 | $ | 1,046.01 | $ | 4.90 | 0.95 | |||||||||
Class I-hypothetical 5% return | $ | 1,000.00 | $ | 1,045.21 | $ | 4.90 | 0.95 | |||||||||
Class R6-actual return | $ | 1,000.00 | $ | 1,045.97 | $ | 4.64 | 0.90 | |||||||||
Class R6-hypothetical 5% return | $ | 1,000.00 | $ | 1,045.46 | $ | 4.64 | 0.90 | |||||||||
Small-Mid Cap Core Fund | ||||||||||||||||
Class I-actual return | $ | 1,000.00 | $ | 1,070.21 | $ | 4.96 | 0.95 | |||||||||
Class I-hypothetical 5% return | $ | 1,000.00 | $ | 1,045.21 | $ | 4.90 | 0.95 | |||||||||
Class R6-actual return | $ | 1,000.00 | $ | 1,070.16 | $ | 4.70 | 0.90 | |||||||||
Class R6-hypothetical 5% return | $ | 1,000.00 | $ | 1,045.46 | $ | 4.64 | 0.90 | |||||||||
Small-Mid Cap Growth Fund | ||||||||||||||||
Class N-actual return | $ | 1,000.00 | $ | 1,002.10 | $ | 6.81 | 1.35 | |||||||||
Class N-hypothetical 5% return | $ | 1,000.00 | $ | 1,043.19 | $ | 6.95 | 1.35 | |||||||||
Class I-actual return | $ | 1,000.00 | $ | 1,003.57 | $ | 5.56 | 1.10 | |||||||||
Class I-hypothetical 5% return | $ | 1,000.00 | $ | 1,044.45 | $ | 5.67 | 1.10 | |||||||||
Class R6-actual return | $ | 1,000.00 | $ | 1,003.81 | $ | 5.20 | 1.03 | |||||||||
Class R6-hypothetical 5% return | $ | 1,000.00 | $ | 1,044.81 | $ | 5.31 | 1.03 | |||||||||
Small Cap Growth Fund | ||||||||||||||||
Class N-actual return | $ | 1,000.00 | $ | 1,000.60 | $ | 7.56 | 1.50 | |||||||||
Class N-hypothetical 5% return | $ | 1,000.00 | $ | 1,042.44 | $ | 7.72 | 1.50 | |||||||||
Class I-actual return | $ | 1,000.00 | $ | 1,001.90 | $ | 6.31 | 1.25 | |||||||||
Class I-hypothetical 5% return | $ | 1,000.00 | $ | 1,043.70 | $ | 6.44 | 1.25 | |||||||||
Class R6-actual return | $ | 1,000.00 | $ | 1,002.33 | $ | 5.85 | 1.16 | |||||||||
Class R6-hypothetical 5% return | $ | 1,000.00 | $ | 1,044.15 | $ | 5.98 | 1.16 | |||||||||
Small Cap Value Fund | ||||||||||||||||
Class N-actual return (b) | $ | 1,000.00 | $ | 1,042.44 | $ | 1.96 | 1.15 | |||||||||
Class N-hypothetical 5% return (6 month period) | $ | 1,000.00 | $ | 1,048.08 | $ | 5.94 | 1.15 | |||||||||
Class I-actual return (b) | $ | 1,000.00 | $ | 1,043.08 | $ | 1.40 | 0.82 | |||||||||
Class I-hypothetical 5% return (6 month period) | $ | 1,000.00 | $ | 1,048.63 | $ | 4.23 | 0.82 | |||||||||
Class R6-actual return (b) | $ | 1,000.00 | $ | 1,043.28 | $ | 1.33 | 0.78 | |||||||||
Class R6-hypothetical 5% return (6 month period) | $ | 1,000.00 | $ | 1,048.70 | $ | 4.03 | 0.78 | |||||||||
Global Leaders Fund | ||||||||||||||||
Class N-actual return | $ | 1,000.00 | $ | 1,051.91 | $ | 5.95 | 1.15 | |||||||||
Class N-hypothetical 5% return | $ | 1,000.00 | $ | 1,044.20 | $ | 5.93 | 1.15 | |||||||||
Class I-actual return | $ | 1,000.00 | $ | 1,052.70 | $ | 4.66 | 0.90 | |||||||||
Class I-hypothetical 5% return | $ | 1,000.00 | $ | 1,045.46 | $ | 4.64 | 0.90 | |||||||||
Class R6-actual return | $ | 1,000.00 | $ | 1,053.21 | $ | 4.40 | 0.85 | |||||||||
Class R6-hypothetical 5% return | $ | 1,000.00 | $ | 1,045.72 | $ | 4.38 | 0.85 |
200 | Annual Report | December 31, 2021 |
Fund Expenses (Unaudited)
Expense Example | Beginning Account Value 7/1/2021 | Ending Account Value 12/31/2021 | Expenses Paid During the Period (a) | Annualized Expense Ratio | ||||||||||||
International Leaders Fund | ||||||||||||||||
Class N-actual return | $ | 1,000.00 | $ | 1,035.02 | $ | 5.90 | 1.15 | % | ||||||||
Class N-hypothetical 5% return | $ | 1,000.00 | $ | 1,044.20 | $ | 5.93 | 1.15 | |||||||||
Class I-actual return | $ | 1,000.00 | $ | 1,036.30 | $ | 4.62 | 0.90 | |||||||||
Class I-hypothetical 5% return | $ | 1,000.00 | $ | 1,045.46 | $ | 4.64 | 0.90 | |||||||||
Class R6-actual return | $ | 1,000.00 | $ | 1,036.32 | $ | 4.36 | 0.85 | |||||||||
Class R6-hypothetical 5% return | $ | 1,000.00 | $ | 1,045.72 | $ | 4.38 | 0.85 | |||||||||
International Growth Fund | ||||||||||||||||
Class N-actual return | $ | 1,000.00 | $ | 1,003.66 | $ | 7.32 | 1.45 | |||||||||
Class N-hypothetical 5% return | $ | 1,000.00 | $ | 1,042.69 | $ | 7.47 | 1.45 | |||||||||
Class I-actual return | $ | 1,000.00 | $ | 1,005.19 | $ | 5.76 | 1.14 | |||||||||
Class I-hypothetical 5% return | $ | 1,000.00 | $ | 1,044.25 | $ | 5.87 | 1.14 | |||||||||
Class R6-actual return | $ | 1,000.00 | $ | 1,005.68 | $ | 5.36 | 1.06 | |||||||||
Class R6-hypothetical 5% return | $ | 1,000.00 | $ | 1,044.66 | $ | 5.46 | 1.06 | |||||||||
Institutional International Growth Fund | ||||||||||||||||
Institutional Class-actual return | $ | 1,000.00 | $ | 1,008.24 | $ | 5.11 | 1.01 | |||||||||
Institutional Class-hypothetical 5% return | $ | 1,000.00 | $ | 1,044.91 | $ | 5.21 | 1.01 | |||||||||
International Small Cap Growth Fund | ||||||||||||||||
Class N-actual return | $ | 1,000.00 | $ | 1,033.47 | $ | 7.48 | 1.46 | |||||||||
Class N-hypothetical 5% return | $ | 1,000.00 | $ | 1,042.64 | $ | 7.52 | 1.46 | |||||||||
Class I-actual return | $ | 1,000.00 | $ | 1,034.89 | $ | 6.10 | 1.19 | |||||||||
Class I-hypothetical 5% return | $ | 1,000.00 | $ | 1,044.00 | $ | 6.13 | 1.19 | |||||||||
Class R6-actual return | $ | 1,000.00 | $ | 1,035.15 | $ | 5.64 | 1.10 | |||||||||
Class R6-hypothetical 5% return | $ | 1,000.00 | $ | 1,044.45 | $ | 5.67 | 1.10 | |||||||||
Emerging Markets Leaders Fund | ||||||||||||||||
Class N-actual return | $ | 1,000.00 | $ | 890.24 | $ | 6.67 | 1.40 | |||||||||
Class N-hypothetical 5% return | $ | 1,000.00 | $ | 1,042.94 | $ | 7.21 | 1.40 | |||||||||
Class I-actual return | $ | 1,000.00 | $ | 891.02 | $ | 5.48 | 1.15 | |||||||||
Class I-hypothetical 5% return | $ | 1,000.00 | $ | 1,044.20 | $ | 5.93 | 1.15 | |||||||||
Class R6-actual return | $ | 1,000.00 | $ | 891.56 | $ | 5.24 | 1.10 | |||||||||
Class R6-hypothetical 5% return | $ | 1,000.00 | $ | 1,044.45 | $ | 5.67 | 1.10 | |||||||||
Emerging Markets Growth Fund | ||||||||||||||||
Class N-actual return | $ | 1,000.00 | $ | 932.96 | $ | 7.55 | 1.55 | |||||||||
Class N-hypothetical 5% return | $ | 1,000.00 | $ | 1,042.19 | $ | 7.98 | 1.55 | |||||||||
Class I-actual return | $ | 1,000.00 | $ | 934.34 | $ | 6.19 | 1.27 | |||||||||
Class I-hypothetical 5% return | $ | 1,000.00 | $ | 1,043.60 | $ | 6.54 | 1.27 | |||||||||
Class R6-actual return | $ | 1,000.00 | $ | 934.95 | $ | 5.71 | 1.17 | |||||||||
Class R6-hypothetical 5% return | $ | 1,000.00 | $ | 1,044.10 | $ | 6.03 | 1.17 | |||||||||
Emerging Markets Small Cap Growth Fund | ||||||||||||||||
Class N-actual return | $ | 1,000.00 | $ | 1,014.87 | $ | 7.87 | 1.55 | |||||||||
Class N-hypothetical 5% return | $ | 1,000.00 | $ | 1,042.19 | $ | 7.98 | 1.55 | |||||||||
Class I-actual return | $ | 1,000.00 | $ | 1,015.88 | $ | 6.61 | 1.30 | |||||||||
Class I-hypothetical 5% return | $ | 1,000.00 | $ | 1,043.45 | $ | 6.70 | 1.30 | |||||||||
Class R6-actual return | $ | 1,000.00 | $ | 1,016.29 | $ | 6.25 | 1.23 | |||||||||
Class R6-hypothetical 5% return | $ | 1,000.00 | $ | 1,043.80 | $ | 6.34 | 1.23 | |||||||||
China Growth Fund | ||||||||||||||||
Class I-actual return (c) | $ | 1,000.00 | $ | 956.00 | $ | 3.49 | 1.05 | |||||||||
Class I-hypothetical 5% return (6 month period) | $ | 1,000.00 | $ | 1,046.43 | $ | 5.42 | 1.05 | |||||||||
Class R6-actual return (c) | $ | 1,000.00 | $ | 956.00 | $ | 3.32 | 1.00 | |||||||||
Class R6-hypothetical 5% return (6 month period) | $ | 1,000.00 | $ | 1,046.60 | $ | 5.16 | 1.00 | |||||||||
Bond Fund | ||||||||||||||||
Class N-actual return | $ | 1,000.00 | $ | 995.62 | $ | 3.02 | 0.60 | |||||||||
Class N-hypothetical 5% return | $ | 1,000.00 | $ | 1,046.98 | $ | 3.10 | 0.60 | |||||||||
Class I-actual return | $ | 1,000.00 | $ | 996.83 | $ | 2.26 | 0.45 | |||||||||
Class I-hypothetical 5% return | $ | 1,000.00 | $ | 1,047.73 | $ | 2.32 | 0.45 | |||||||||
Class R6-actual return | $ | 1,000.00 | $ | 997.63 | $ | 2.01 | 0.40 | |||||||||
Class R6-hypothetical 5% return | $ | 1,000.00 | $ | 1,047.98 | $ | 2.06 | 0.40 |
December 31, 2021 | William Blair Funds | 201 |
Fund Expenses (Unaudited)
Expense Example | Beginning Account Value 7/1/2021 | Ending Account Value 12/31/2021 | Expenses Paid During the Period (a) | Annualized Expense Ratio | ||||||||||||
Short Duration Bond Fund | ||||||||||||||||
Class N-actual return | $ | 1,000.00 | $992.05 | $ | 3.60 | 0.72 | % | |||||||||
Class N-hypothetical 5% return | $ | 1,000.00 | $1,046.39 | $ | 3.70 | 0.72 | ||||||||||
Class I-actual return | $ | 1,000.00 | $992.70 | $ | 2.85 | 0.57 | ||||||||||
Class I-hypothetical 5% return | $ | 1,000.00 | $1,047.14 | $ | 2.92 | 0.57 | ||||||||||
Class R6-actual return | $ | 1,000.00 | $992.94 | $ | 2.60 | 0.52 | ||||||||||
Class R6-hypothetical 5% return | $ | 1,000.00 | $1,047.40 | $ | 2.67 | 0.52 | ||||||||||
Ultra-Short Duration Bond Fund | ||||||||||||||||
Class N-actual return | $ | 1,000.00 | $992.19 | $ | 2.76 | 0.55 | ||||||||||
Class N-hypothetical 5% return | $ | 1,000.00 | $1,047.23 | $ | 2.84 | 0.55 | ||||||||||
Class I-actual return | $ | 1,000.00 | $994.11 | $ | 2.01 | 0.40 | ||||||||||
Class I-hypothetical 5% return | $ | 1,000.00 | $1,047.98 | $ | 2.06 | 0.40 | ||||||||||
Class R6-actual return | $ | 1,000.00 | $994.37 | $ | 1.76 | 0.35 | ||||||||||
Class R6-hypothetical 5% return | $ | 1,000.00 | $1,048.24 | $ | 1.81 | 0.35 | ||||||||||
Emerging Markets Debt Fund | ||||||||||||||||
Class I-actual return | $ | 1,000.00 | $982.36 | $ | 3.50 | 0.70 | ||||||||||
Class I-hypothetical 5% return | $ | 1,000.00 | $1,046.47 | $ | 3.61 | 0.70 | ||||||||||
Class R6-actual return | $ | 1,000.00 | $982.98 | $ | 3.25 | 0.65 | ||||||||||
Class R6-hypothetical 5% return | $ | 1,000.00 | $1,046.72 | $ | 3.35 | 0.65 | ||||||||||
Macro Allocation Fund | ||||||||||||||||
Class N-actual return | $ | 1,000.00 | $974.05 | $ | 6.37 | 1.28 | ||||||||||
Class N-hypothetical 5% return | $ | 1,000.00 | $1,043.55 | $ | 6.59 | 1.28 | ||||||||||
Class I-actual return | $ | 1,000.00 | $975.42 | $ | 5.13 | 1.03 | ||||||||||
Class I-hypothetical 5% return | $ | 1,000.00 | $1,044.81 | $ | 5.31 | 1.03 | ||||||||||
Class R6-actual return | $ | 1,000.00 | $975.27 | $ | 4.88 | 0.98 | ||||||||||
Class R6-hypothetical 5% return | $ | 1,000.00 | $1,045.06 | $ | 5.05 | 0.98 |
(a) | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by the number of days in the period, 184 and divided by 365 (to reflect the one-half year period). |
(b) | The Small Cap Value Fund figures reflect the fiscal period from November 1, 2021 to December 31, 2021. |
(c) | For the period August 27, 2021 (Commencement of Operations) to December 31, 2021. |
202 | Annual Report | December 31, 2021 |
BOARD OF TRUSTEES (as of February 25, 2022) | |
Vann A. Avedisian Co-founder and Partner, Newbond Holdings Kathleen T. Barr Retired Senior Managing Director, PNC Capital Advisors, LLC Stephanie G. Braming, CFA, Chairman and President Partner, William Blair Cissie Citardi Partner, William Blair Daniel N. Leib Chief Executive Officer, Donnelley Financial Solutions, Inc. Dorri C. McWhorter President and Chief Executive Officer, YMCA of Metropolitan Chicago Thomas J. Skelly Retired Managing Partner, Accenture Steven R. Zenz Retired Partner, KPMG LLP | |
Officers | |
Alaina Anderson, CFA, Senior Vice President Marcelo Assalin, CFA, Senior Vice President Thomas Clarke, Senior Vice President Daniel Crowe, CFA, Senior Vice President Robert J. Duwa, CFA, Senior Vice President Simon Fennell, Senior Vice President Andrew G. Flynn, CFA, Senior Vice President David C. Fording, CFA, Senior Vice President James S. Golan, CFA, Senior Vice President William V. Heaphy, CFA, Senior Vice President James E. Jones, CFA, Senior Vice President Kenneth J. McAtamney, Senior Vice President Todd M. McClone, CFA, Senior Vice President D.J. Neiman, CFA, Senior Vice President Casey K. Preyss, CFA, Senior Vice President David P. Ricci, CFA, Senior Vice President Lisa D. Rusch, Senior Vice President Hugo Scott-Gall, Senior Vice President Ward D. Sexton, CFA, Senior Vice President Andrew Siepker, CFA, Senior Vice President Brian D. Singer, CFA, Senior Vice President Mark C. Thompson, CFA, Senior Vice President Vivian Lin Thurston, CFA, Senior Vice President Dan Zelazny, Senior Vice President Matthew Fleming, CFA, Vice President Kathleen M. Lynch, CFA, Vice President Vesta Marks, CFA, CAIA, Vice President Gary J. Merwitz, Vice President Marco Ruijer, CFA, Vice President John M. Raczek, Treasurer Andrew T. Pfau, Secretary David M. Cihak, Assistant Treasurer Walter R. Randall, Jr., Chief Compliance Officer and Assistant Secretary Investment Adviser William Blair Investment Management, LLC Distributor William Blair & Company, L.L.C. Independent Registered Public Accounting Firm Ernst & Young LLP Transfer Agent DST Asset Manager Solutions, Inc. For customer assistance, call 1-800-635-2886 P.O. Box 219137 Kansas City, Missouri 64121-9137 |
December 31, 2021 | William Blair Funds | 203 |
William Blair Funds | |||||
U.S. EQUITY | GLOBAL EQUITY | FIXED INCOME | |||
Growth Fund | Global Leaders Fund | Bond Fund | |||
Large Cap Growth Fund | INTERNATIONAL EQUITY | Short Duration Bond Fund | |||
Mid Cap Growth Fund | Ultra-Short Duration Bond Fund | ||||
Small-Mid Cap Core Fund | International Leaders Fund | ||||
Small-Mid Cap Growth Fund | International Growth Fund | EMERGING MARKETS DEBT | |||
Small Cap Growth Fund | Institutional International Growth Fund | ||||
Small Cap Value Fund | International Small Cap Growth Fund | Emerging Markets Debt Fund | |||
Emerging Markets Leaders Fund | |||||
Emerging Markets Growth Fund | MULTI-ASSET AND ALTERNATIVE | ||||
Emerging Markets Small Cap Growth Fund | |||||
China Growth Fund | Macro Allocation Fund |
© | William Blair & Company, L.L.C., distributor | |||
+1 800 742 7272 | 150 North Riverside Plaza | |||
williamblairfunds.com | Chicago, Illinois 60606 | 00103188 |
Item 2. | Code of Ethics |
(a) As of the end of the period covered by this report, the Registrant has adopted a code of ethics (the “Code”) that applies to its principal executive officer and principal financial officer (the “Covered Officers”).
(b) No disclosures are required pursuant to this Item 2(b).
(c) During the period covered by the report, the Registrant did not make any amendment to a provision of the Code.
(d) During the period covered by the report, the Registrant did not grant any waivers, including implicit waivers, from the provisions of the Code.
(e) Not applicable.
(f) A copy of the Code is filed as Exhibit 13(a)(1) to this Form N-CSR.
Item 3. | Audit Committee Financial Expert |
The Registrant’s Board of Trustees has determined that the Registrant has at least one “audit committee financial expert” (as defined in Item 3 of Form N-CSR) serving on its Audit Committee. Mr. Daniel N. Leib, the Registrant’s audit committee financial expert, is “independent” for purposes of Item 3 to Form N-CSR.
An “audit committee financial expert” is not an “expert” for any purpose, including for purposes of Section 11 of the Securities Act of 1933, as a result of being designated as an “audit committee financial expert.” Further, the designation of a person as an “audit committee financial expert” does not mean that the person has any greater duties, obligations, or liability than those imposed on the person without the “audit committee financial expert” designation. Similarly, the designation of a person as an “audit committee financial expert” does not affect the duties, obligations, or liability of any other member of the audit committee or Board of Trustees.
Item 4. | Principal Accountant Fees and Services |
Audit Fees
For the fiscal years ended December 31, 2020 and 2021, Ernst & Young LLP, the Registrant’s principal accountant (“E&Y”), billed the Registrant $508,300 and $587,100, respectively, for professional services rendered for the audit of the Registrant’s annual financial statements or services that are normally provided in connection with statutory and regulatory filings.
Audit-Related Fees
For the fiscal years ended December 31, 2020 and 2021, E&Y billed the Registrant $0 and $0, respectively, for assurance and related services that are reasonably related to the performance of the audit of the Registrant’s financial statements and that are not reported above. For the fiscal years ended December 31, 2020 and 2021, E&Y provided no audit-related services to William Blair Investment Management, LLC, the Registrant’s investment adviser (“William Blair”), or any of its control affiliates that were for engagements directly related to the Registrant’s operations and financial reporting.
Tax Fees
For the fiscal years ended December 31, 2020 and 2021, E&Y billed the Registrant $341,754 and $158,125, respectively, for professional services rendered for tax compliance, tax advice and tax planning. Such services consisted of preparation of tax returns, year-end distribution review, qualifying dividend income analysis and review of year-end tax reporting. For the fiscal years ended December 31, 2020 and 2021, E&Y did not bill William Blair and its control affiliates for any services that were for engagements directly related to the Registrant’s operations and financial reporting.
All Other Fees
For the fiscal years ended December 31, 2020 and 2021, E&Y did not bill the Registrant for products and services other than the services reported above. For the fiscal year ended December 31, 2020 and 2021, E&Y provided no other services to William Blair or any of its control affiliates that were for engagements directly related to the Registrant’s operations and financial reporting.
Audit Committee Pre-Approval Policies and Procedures
Pursuant to the Registrant’s Audit Committee Charter (the “Charter”), the Audit Committee is responsible for pre-approving any engagement of the principal accountant to provide non-prohibited services to the Registrant, including the fees and other compensation to be paid to the principal accountant, to the extent required by Rule 2-01(c)(7) of Regulation S-X. Pursuant to the Charter, the Audit Committee is also responsible for pre-approving any engagement of the principal accountant, including the fees and other compensation to be paid to the principal accountant, to provide non-audit services to the Registrant’s investment adviser (or any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the Registrant), if the engagement relates directly to the operations and financial reporting of the Registrant, to the extent required by Rule 2-01(c)(7) of Regulation S-X. The Chair of the Audit Committee may grant the pre-approval referenced above for non-prohibited and non-audit services. All such delegated pre-approvals will be presented to the Audit Committee no later than the next Audit Committee meeting. None of the Audit-Related and Tax Services billed by E&Y for the fiscal years ended December 31, 2020 and 2021 discussed above were approved by the Audit Committee pursuant to a waiver of these Pre-Approval Policies and Procedures.
Non-Audit Fees
For the fiscal years ended December 31, 2020 and 2021, E&Y billed the Trust $341,754 and $158,125, respectively, in non-audit fees (tax services). For the same periods, E&Y billed the Adviser and its control affiliates $0 and $0, respectively, in non-audit fees.
Item 5. | Audit Committee of Listed Registrants |
Not applicable to this Registrant, insofar as the Registrant is not a listed company.
Item 6. | Schedule of Investments |
See Schedule of Investments in Item 1.
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies |
Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.
Item 8. | Portfolio Managers of Closed-End Management Investment Companies |
Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.
Item 9. | Purchase of Equity Securities by Closed-End Management Investment Companies and Affiliated Purchasers |
Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.
Item 10. | Submission of Matters to a Vote of Security Holders |
There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees since the Registrant last provided disclosure in response to this item.
Item 11. |
Controls and Procedures
(a) The Registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the Registrant’s Disclosure Controls and Procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c)) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3 (b) under the 1940 Act (17 CFR 270.30a-3(b) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended to date (17 CFR 240.13a-15(b) or 240.15d-15(b)).
(b) There were no changes in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.
Item 12. | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies |
Not applicable to this Registrant, insofar as the Registrant is not a closed-end management investment company.
Item 13. | Exhibits |
13. (a) (1) Code of Ethics required by Item 2 is filed as an exhibit hereto.
13. (a) (2) (1)
13. (a) (2) (2)
13. (a) (3)
Not applicable to this Registrant.
13. (a) (4)
Not applicable to this filing.
13. (b)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
William Blair Funds | ||
/s/ Stephanie G. Braming | ||
By: | Stephanie G. Braming | |
President (Principal Executive Officer) |
Date: February 25, 2022
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
/s/ Stephanie G. Braming | ||
By: | Stephanie G. Braming | |
President (Principal Executive Officer) |
Date: February 25, 2022
/s/ John M. Raczek | ||
By: | John M. Raczek | |
Treasurer (Principal Financial Officer) |
Date: February 25, 2022