William Blair Funds NCSRS Certified semi-annual shareholder report (management investment company)

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: June 30, 2022

Item 1. June 30, 2022 Semiannual Reports transmitted to shareholders.









			June 30, 2022
William Blair Funds Semiannual Report

Table of Contents

U.S. Growth & Core Market Review and Outlook	3

U.S. Value Market Review and Outlook	4

Growth Fund
An Overview from the Portfolio Manager	5
Portfolio of Investments	7

Large Cap Growth Fund
An Overview from the Portfolio Managers	8
Portfolio of Investments	10

Mid Cap Growth Fund
An Overview from the Portfolio Managers	11
Portfolio of Investments	13

Mid Cap Value Fund
An Overview from the Portfolio Managers	14
Portfolio of Investments	16

Small-Mid Cap Core Fund
An Overview from the Portfolio Managers	17
Portfolio of Investments	19

Small-Mid Cap Growth Fund
An Overview from the Portfolio Managers	21
Portfolio of Investments	23

Small Cap Growth Fund
An Overview from the Portfolio Managers	24
Portfolio of Investments	26

Small Cap Value Fund
An Overview from the Portfolio Managers	28
Portfolio of Investments	30

Global Markets Review and Outlook	32

Global Leaders Fund
An Overview from the Portfolio Managers	34
Portfolio of Investments	36

International Leaders Fund
An Overview from the Portfolio Managers	38
Portfolio of Investments	40

International Growth Fund
An Overview from the Portfolio Managers	42
Portfolio of Investments	45

Institutional International Growth Fund
An Overview from the Portfolio Managers	49
Portfolio of Investments	52

International Small Cap Growth Fund
An Overview from the Portfolio Managers	56
Portfolio of Investments	58

Emerging Markets Leaders Fund
An Overview from the Portfolio Managers	61
Portfolio of Investments	63

June 30, 2022

William Blair Funds

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.

Semiannual Report

June 30, 2022

U.S. Growth & Core Market Review and Outlook

Following the first quarter of 2022 equity market decline, performance of U.S. equity indices worsened during the second quarter. Using the S&P 500 Index as a proxy for U.S. equity market performance, it was the weakest first half of a year since 1970.

In a volatile first quarter, the Omicron wave, inflation concerns, and the invasion of Ukraine weighed on equity valuations. Elevated inflation drove expectations for faster monetary tightening by the Federal Open Market Committee (FOMC) and corresponded with a rise in 10-year U.S. Treasury bond yields and U.S. mortgage rates. During March, the FOMC increased the target federal funds rate by 25 basis points for the first increase in this cycle.

The second quarter was characterized by tightening financial conditions and weakening economic data. The Consumer Price Index hit a multi-decade high and the Federal Reserve (Fed) implemented two additional rate increases. In total, the Fed raised rates by 150 basis points year-to-date, and signaled further increases for the balance of the year. With record-high gas prices, elevated mortgage rates, lower asset prices and higher food costs, consumer sentiment declined in the second quarter. Other economic data points, including U.S. manufacturing trends and housing-related indicators, also weakened. While these dynamics pressured stock prices, U.S. corporate earnings remained solid.

Recent data points suggest a slow-down in economic activity relative to the extremely strong levels experienced in 2021. Supply chain disruptions present continued challenges as over-ordering amid shortages is now yielding excessive inventories in some pockets of the economy. U.S. consumers are increasingly feeling the pressures of inflation, dampening real income and confidence, while a supportive labor market and healthy post-COVID demand for experiential purchases remain bright spots.

With the backdrop of inflationary pressures and rising interest rates, equity market weakness year-to-date has been driven primarily by valuation compression while corporate earnings have exhibited resilience thus far. It is broadly anticipated that in the coming quarters, corporate earnings will begin to reflect the challenges observed in other parts of the economy.

As investor focus shifts from higher rates to the potential for an economic slowdown, we believe it is increasingly likely that investors will differentiate among stocks on the basis of quality attributes, such as the durability of margins and earnings, and growth, as fewer companies will exhibit that characteristic. In our view, companies with these attributes are in a better position than many of their peers to navigate turbulence. We believe our philosophy of identifying durable growth businesses whose stocks present attractive risk/reward opportunities should add value in this economic environment.

June 30, 2022

William Blair Funds

U.S. Value Market Review and Outlook

The first half of 2022 was historically challenging for U.S. small cap investors, as the 23.43% decline in the Russell 2000 Index was its worst quarterly decline ever. Small cap value shares, which declined 17.3%, fared somewhat better, but the loss was nonetheless severe. The markets were weak throughout the first half of 2022 as the Federal Reserve (Fed) became increasingly hawkish even as the economy began to show increasing strains such as declining consumer confidence and manufacturing activity. The watershed moment in the second quarter was the June Consumer Price Index reading of 8.6%, a 40 year high, followed by the Fed’s aggressive 75 basis point increase in its policy rate. The market has concluded that the Fed is willing to induce an economic recession to cool inflation. In our view, the near-term trajectory of the stock market will depend on the level and direction of inflation. As discussed above, the Fed has put its price stability mandate ahead of its employment mandate. Thus, the longer inflation remains elevated, the more likely it becomes in our view that the Fed’s actions will result in a recession for the U.S. economy. The good news is that, in our view, there are growing signs that inflation has peaked and that the Fed’s recent rate moves and future signaling are beginning to work. Even oil and agricultural commodity prices, which are beyond the Fed’s control, have begun to ease as of late.

During this period of economic uncertainty, we are comforted by the historically low valuation of the Small Cap Value Fund’s holdings, which trade at just 10.2x estimated earnings for the next twelve months. We agree with the growing number of commentators arguing that earnings estimates for many companies are too high, but much of this is already discounted in current prices. If estimates prove to be 30% too high, this still leaves the portfolio trading for just 14.3x earnings, a level in line with the historical average for small cap value shares. Of course, one can never be certain what exactly is priced into the market, but the upcoming reporting season is likely to give us a clearer picture.

Semiannual Report

June 30, 2022

	Growth Fund

	The Growth Fund seeks long-term capital appreciation.

	AN OVERVIEW FROM THE PORTFOLIO MANAGER

David C. Fording, CFA	The William Blair Growth Fund (Class N shares) (the “Fund”) posted a 28.54% decrease, net of fees, for the six months ended June 30, 2022. By comparison, the Fund’s benchmark index, the Russell 3000^®Growth Index (the “Index”), decreased 28.15%. For the year-to-date period, style factors and stock-specific dynamics were largely offsetting. From a style standpoint, our emphasis on longer duration growth companies was a headwind as companies with lower growth characteristics outperformed during the period. From a stock-specific perspective, Information Technology holdings PayPal Holdings and Advanced Micro Devices, as well as not owning Apple, detracted from relative returns. Shares of PayPal declined due to forward looking revenue guidance that was below expectations, driven in part by e-commerce spending headwinds. Stock selection in Consumer Discretionary, including our positions in Farfetch and Burlington Stores, and Industrials, including our position in Kornit Digital, also dampened performance. Among top contributors were UnitedHealth (Health Care), New Fortress (Energy), Coca-Cola (Consumer Staples) and Mastercard (Information Technology). Positive stock selection in Communication Services, including our position in Zynga and not owning Meta Platforms, also added value during the period. Shares of Meta Platforms lagged due to slowing advertising revenue growth; thus, not owning this laggard resulted in a tailwind to relative performance. Please refer to the U.S. Growth & Core Market Review and Outlook relating to the Fund on page 3.

June 30, 2022

William Blair Funds

Growth Fund

Performance Highlights (Unaudited)

Average Annual Total Returns through 6/30/2022

	Year to Date			1 Year			3 Year			5 Year			10 Year			Since Inception(a)
Class N		(28.54	)%		(22.85	)%		8.56	%		12.97	%		12.54	%		—	%
Class I		(28.44	)		(22.58	)		8.87			13.29			12.89			—
Class R6		(28.36	)		(22.52	)		8.98			—			—			9.36
Russell 3000^® Growth Index		(28.15	)		(19.78	)		11.84			13.63			14.41			11.46
S&P 500^®Index		(19.96	)		(10.62	)		10.60			11.31			12.96			10.36


(a)	Since inception is for the period from May 2, 2019 (Commencement of Operations) to June 30, 2022.

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 June 30, 2022. 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.

Semiannual Report

June 30, 2022

Growth Fund

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)



	Issuer	Shares		Value

	Common Stocks
	Information Technology—35.6%
*	Adobe, Inc.		13,866	$	5,076
*	Advanced Micro Devices, Inc.		53,884		4,121
*	Dynatrace, Inc.		54,015		2,130
	Fidelity National Information Services, Inc.		47,287		4,335
	Mastercard, Inc.		33,762		10,651
	Microsoft Corporation		88,325		22,685
*	MongoDB, Inc.		5,491		1,425
	National Instruments Corporation		101,961		3,184
*	Nice, Ltd.—ADR		13,143		2,529
	NVIDIA Corporation		33,666		5,103
*	PayPal Holdings, Inc.		43,495		3,038
*	Pure Storage, Inc.		153,195		3,939
	Texas Instruments, Inc.		32,157		4,941
*	Verra Mobility Corporation		236,237		3,711
*	Workday, Inc.		20,977		2,928
					79,796
	Health Care—14.9%
	Agilent Technologies, Inc.		16,118		1,914
	Azenta, Inc.		22,676		1,635
*	HealthEquity, Inc.		36,344		2,231
*	Horizon Therapeutics plc†		39,546		3,154
*	Intuitive Surgical, Inc.		13,959		2,802
*	Penumbra, Inc.		9,955		1,240
	STERIS plc†		15,821		3,261
	Stryker Corporation		17,276		3,437
	UnitedHealth Group, Inc.		14,561		7,479
*	Veeva Systems, Inc.		13,229		2,620
	Zoetis, Inc.		20,796		3,575
					33,348
	Consumer Discretionary—12.8%
*	Amazon.com, Inc.		135,280		14,368
*	Bright Horizons Family Solutions, Inc.		34,962		2,955
*	Burlington Stores, Inc.		15,683		2,136
*	Etsy, Inc.		14,461		1,059
*	Farfetch, Ltd.†		126,695		907
	NIKE, Inc.		37,479		3,830
*	Overstock.com, Inc.		24,256		607
*	Revolve Group, Inc.		44,008		1,140
*	Skyline Champion Corporation		37,845		1,795
					28,797
	Communication Services—11.1%
*	Alphabet, Inc. Class “A”		7,966		17,360
*	Take-Two Interactive Software, Inc.		23,031		2,822
	Warner Music Group Corporation		127,039		3,094
*	ZipRecruiter, Inc.		115,511		1,712
					24,988
	Industrials—6.9%
*	ACV Auctions, Inc.		100,855		659
*	Copart, Inc.		41,440		4,503
*	CoStar Group, Inc.		43,099		2,604
*	Energy Recovery, Inc.		124,874		2,425
*	Kornit Digital, Ltd.†		19,671		623
	The Brink’s Co.		56,531		3,432
*	Trex Co., Inc.		20,465		1,114
					15,360

	Issuer	Shares or Principal Amount		Value

	Common Stocks—(continued)
	Consumer Staples—5.7%
*	Performance Food Group Co.		73,913	$	3,399
	The Coca-Cola Co.		98,998		6,228
	The Estee Lauder Cos., Inc.		12,523		3,189
					12,816
	Energy—4.0%
	Cameco Corporation		192,384		4,044
*	Green Plains, Inc.		67,237		1,827
	New Fortress Energy, Inc.		80,964		3,203
					9,074
	Financials—3.3%
	Aon plc†		11,264		3,038
	Ares Management Corporation		49,657		2,823
	Bridge Investment Group Holdings, Inc.		98,524		1,433
					7,294
	Real Estate—2.0%
	SBA Communications Corporation		9,047		2,895
*	Zillow Group, Inc.		46,852		1,488
					4,383
	Materials—1.8%
	Ball Corporation		57,375		3,946
	Total Common Stocks—98.1% (cost $158,474)				219,802

	Repurchase Agreement
	Fixed Income Clearing Corporation, 0.240% dated 6/30/22, due 7/1/22, repurchase price $4,963, collateralized by U.S. Treasury Note, 1.250%, due 06/30/28, valued at $5,062		$4,963		4,963
	Total Repurchase Agreement—2.2% (cost $4,963)				4,963
	Total Investments—100.3% (cost $163,437)				224,765
	Liabilities, plus cash and other assets—(0.3)%				(709	)
	Net assets—100.0%			$	224,056

ADR = American Depository Receipt

* = Non-income producing security

† = U.S. listed foreign security

See accompanying Notes to Financial Statements.

June 30, 2022

William Blair Funds

	Large Cap Growth Fund

	The Large Cap Growth Fund seeks long-term capital appreciation.

	AN OVERVIEW FROM THE PORTFOLIO MANAGERS

James S. Golan, CFA David P. Ricci, CFA	The William Blair Large Cap Growth Fund (Class N shares) (the “Fund”) posted a 31.81% decrease, net of fees, for the six months ended June 30, 2022. By comparison, the Fund’s benchmark index, the Russell 1000^®Growth Index (the “Index”), decreased 28.07%. The Fund underperformed the Index during the period. Trailing returns on a year-to-date basis were driven by a combination of style factors and stock-specific dynamics. From a style standpoint, our emphasis on longer duration growth companies was a headwind as companies with lower growth characteristics outperformed during the period. From a stock-specific perspective, selection in Information Technology, including our positions in PayPal Holdings, Unity Software and Advanced Micro Devices, as well as not owning Apple, detracted from relative returns. Shares of PayPal declined due to forward looking revenue guidance that was below expectations, driven in part by e-commerce spending headwinds. Other top detractors were Netflix (Communication Services) and Amazon.com (Consumer Discretionary). Netflix reported a decline in subscribers and announced related business initiatives in hope of re-igniting subscriber growth. Top contributors for the year-to-date period included UnitedHealth (Health Care) and Mastercard (Information Technology), largely due to the reasons outlined above. Other notable outperformers included Costco (Consumer Staples), Marriott (Consumer Discretionary) and Linde (Materials). Our decision to not own Meta Platforms (Communication Services) also aided relative returns as shares lagged due to slowing advertising revenue growth. Please refer to the U.S. Growth & Core Market Review and Outlook relating to the Fund on page 3.

Semiannual Report

June 30, 2022

Large Cap Growth Fund

Performance Highlights (Unaudited)

Average Annual Total Returns through 6/30/2022
	Year to Date			1 Year			3 Year			5 Year			10 Year			Since Inception(a)
Class N		(31.81	)%		(23.54	)%		9.25	%		14.62	%		14.56	%		—	%
Class I		(31.74	)		(23.34	)		9.52			14.89			14.85			—
Class R6		(31.73	)		(23.32	)		9.56			—			—			10.41
Russell 1000^® Growth Index		(28.07	)		(18.77	)		12.58			14.29			14.80			12.17

(a)	Since inception is for the period from May 2, 2019 (Commencement of Operations) to June 30, 2022.

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.

Sector Diversification (Unaudited)

The sector diversification shown is based on the total long-term securities.

June 30, 2022

William Blair Funds

Large Cap Growth Fund

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)



	Issuer	Shares		Value

	Common Stocks
	Information Technology—40.7%
	Accenture plc†		126,290	$	35,064
*	Adobe, Inc.		66,060		24,182
*	Advanced Micro Devices, Inc.		159,088		12,166
*	Guidewire Software, Inc.		173,670		12,329
	Intuit, Inc.		73,070		28,164
	Lam Research Corporation		40,650		17,323
	Mastercard, Inc.		183,510		57,894
	Microsoft Corporation		573,890		147,392
	NVIDIA Corporation		184,840		28,020
*	PayPal Holdings, Inc.		334,320		23,349
*	salesforce.com, Inc.		148,980		24,588
	Texas Instruments, Inc.		129,290		19,865
*	Unity Software, Inc.		220,050		8,102
					438,438
	Consumer Discretionary—15.8%
*	Amazon.com, Inc.		784,100		83,279
	Marriott International, Inc.		241,900		32,901
	NIKE, Inc.		245,070		25,046
	Starbucks Corporation		381,700		29,158
					170,384
	Health Care—13.0%
*	ABIOMED, Inc.		77,738		19,241
	Stryker Corporation		130,460		25,952
	UnitedHealth Group, Inc.		111,140		57,085
*	Veeva Systems, Inc.		26,980		5,343
	Zoetis, Inc.		188,670		32,431
					140,052
	Communication Services—10.9%
*	Alphabet, Inc. Class “A”		37,200		81,068
*	Alphabet, Inc. Class “C”		4,330		9,472
*	Live Nation Entertainment, Inc.		327,150		27,016
					117,556
	Industrials—7.1%
*	Copart, Inc.		298,090		32,390
*	CoStar Group, Inc.		396,620		23,960
	Equifax, Inc.		110,300		20,161
					76,511
	Consumer Staples—6.4%
	Costco Wholesale Corporation		95,540		45,791
	The Estee Lauder Cos., Inc.		88,920		22,645
					68,436
	Financials—2.4%
	Apollo Global Management, Inc.		539,150		26,138
	Materials—2.2%
	Linde plc†		83,910		24,126
	Total Common Stocks—98.5% (cost $1,090,689)				1,061,641


Issuer	Principal Amount		Value

Repurchase Agreement
Fixed Income Clearing Corporation, 0.240% dated 6/30/22, due 7/1/22, repurchase price $13,037, collateralized by U.S. Treasury Bond, 3.000%, due 02/15/49, valued at $13,297		$13,037	$	13,037
Total Repurchase Agreement—1.2% (cost $13,037)				13,037
Total Investments—99.7% (cost $1,103,726)				1,074,678
Cash and other assets, less liabilities—0.3%				2,964
Net assets—100.0%			$	1,077,642

† = U.S. listed foreign security

* = Non-income producing security

See accompanying Notes to Financial Statements.

Semiannual Report

June 30, 2022

	Mid Cap Growth Fund

	The Mid Cap Growth Fund seeks long-term capital appreciation.

	AN OVERVIEW FROM THE PORTFOLIO MANAGERS

Daniel Crowe, CFA James E. Jones, CFA	The William Blair Mid Cap Growth Fund (Class N shares) (the “Fund”) posted a 32.05% decrease, net of fees, for the six months ended June 30, 2022. By comparison, the Fund’s benchmark index, the Russell Midcap^®Growth Index (the “Index”), decreased 31.00%. The Fund modestly trailed the Index in the year-to-date period. Relative performance was driven by both style factors and stock-specific dynamics. From a style perspective, similar to second quarter dynamics, our emphasis on longer duration growth companies was a headwind. From a stock-specific perspective, our top individual detractors included Coupa Software (Information Technology), Align Technology (Health Care) and Burlington Stores (Consumer Discretionary). Coupa Software, provider of a cloud-based business spend management platform, reported a slowdown of demand in Europe, primarily due to the ongoing Russia/Ukraine crisis. Stock selection in Consumer Discretionary, including our positions in Farfetch and Etsy, was also a detractor. Farfetch is a leading e-commerce marketplace focused on the luxury market whose shares were pressured by macro-related issues, including the company’s exposure to consumers in Europe and China, and difficult year-over-year comparisons. Conversely, our top individual contributors included New Fortress Energy (Energy), BWX Technologies (Industrials) and Veeva Systems (Health Care). New Fortress Energy develops, finances and constructs liquified natural gas assets and related infrastructure. The company announced a number of project milestones and shares were further supported by a strong backdrop to sign new deals. Shares of BWX Technologies advanced for the reasons outlined above. Stock selection in Information Technology, including our positions in SolarEdge Technologies and Teledyne Technologies, contributed positively to relative returns. Please refer to the U.S. Growth & Core Market Review and Outlook relating to the Fund on page 3.

June 30, 2022

William Blair Funds

Mid Cap Growth Fund

Performance Highlights (Unaudited)

Average Annual Total Returns through 6/30/2022
	Year to Date			1 Year			3 Year			5 Year			10 Year			Since Inception(a)
Class N		(32.05	)%		(29.08	)%		(0.19	)%		6.54	%		8.06	%		—	%
Class I		(31.97	)		(28.84	)		0.07			6.81			8.34			—
Class R6		(31.93	)		(28.80	)		0.14			—			—			0.76
Russell Midcap^® Growth Index		(31.00	)		(29.57	)		4.25			8.88			11.50			4.67

(a)	Since inception is for the period from May 2, 2019 (Commencement of Operations) to June 30, 2022.

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.

Sector Diversification (Unaudited)

The sector diversification shown is based on the total long-term securities.

Semiannual Report

June 30, 2022

Mid Cap Growth Fund

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)



	Issuer	Shares		Value

	Common Stocks
	Information Technology—29.8%
*	Cadence Design Systems, Inc.		8,360	$	1,254
*	Coupa Software, Inc.		5,488		313
*	Dynatrace, Inc.		28,670		1,131
*	EPAM Systems, Inc.		2,565		756
*	Euronet Worldwide, Inc.		9,820		988
*	Guidewire Software, Inc.		4,012		285
	MKS Instruments, Inc.		6,955		714
*	MongoDB, Inc.		1,815		471
*	Nice, Ltd.—ADR		3,830		737
*	Palo Alto Networks, Inc.		2,295		1,134
*	Pure Storage, Inc.		33,895		872
*	SolarEdge Technologies, Inc.		3,220		881
*	Teledyne Technologies, Inc.		2,680		1,005
					10,541
	Health Care—19.6%
*	ABIOMED, Inc.		3,233		800
	Agilent Technologies, Inc.		6,325		751
*	Align Technology, Inc.		1,240		293
*	Charles River Laboratories International, Inc.		2,440		522
*	DexCom, Inc.		8,800		656
*	Horizon Therapeutics plc†		11,190		893
*	IDEXX Laboratories, Inc.		1,385		486
*	Mettler-Toledo International, Inc.		545		626
	STERIS plc†		2,145		442
*	Veeva Systems, Inc.		7,290		1,444
					6,913
	Industrials—17.0%
*	Axon Enterprise, Inc.		6,300		587
*	Builders FirstSource, Inc.		11,375		611
	BWX Technologies, Inc.		20,679		1,139
*	Clarivate plc†		53,005		734
*	Copart, Inc.		11,897		1,293
*	CoStar Group, Inc.		21,805		1,317
*	Generac Holdings, Inc.		1,500		316
					5,997
	Consumer Discretionary—8.9%
*	Aptiv plc†		5,455		486
*	Bright Horizons Family Solutions, Inc.		8,120		686
*	Burlington Stores, Inc.		4,385		597
*	Chipotle Mexican Grill, Inc.		704		920
*	Etsy, Inc.		4,479		328
*	Farfetch, Ltd.†		18,920		136
					3,153
	Energy—5.5%
	Cameco Corporation		21,770		458
	Hess Corporation		7,205		763
	New Fortress Energy, Inc.		18,658		738
					1,959

	Issuer	Shares or Principal Amount		Value

	Common Stocks—(continued)
	Communication Services—5.0%
	Cable One, Inc.		176	$	227
*	Live Nation Entertainment, Inc.		6,379		527
*	Take-Two Interactive Software, Inc.		3,495		428
	Warner Music Group Corporation		23,505		573
					1,755
	Materials—4.5%
	Crown Holdings, Inc.		6,495		599
	Vulcan Materials Co.		7,065		1,004
					1,603
	Financials—3.7%
	Ares Management Corporation		5,880		334
	PacWest Bancorp		13,555		362
	Western Alliance Bancorp		8,470		598
					1,294
	Real Estate—2.9%
	SBA Communications Corporation		1,940		621
*	Zillow Group, Inc.		12,390		393
					1,014
	Consumer Staples—1.3%
*	Performance Food Group Co.		10,210		469
	Total Common Stocks—98.2% (cost $38,052)				34,698

	Repurchase Agreement
	Fixed Income Clearing Corporation, 0.240% dated 6/30/22, due 7/1/22, repurchase price $692, collateralized by U.S. Treasury Bond, 3.000%, due 02/15/49, valued at $705		$692		692
	Total Repurchase Agreement—1.9% (cost $692)				692
	Total Investments—100.1% (cost $38,744)				35,390
	Liabilities, plus cash and other assets—(0.1)%				(50	)
	Net assets—100.0%			$	35,340

ADR = American Depository Receipt

* = Non-income producing security

† = U.S. listed foreign security

See accompanying Notes to Financial Statements.

June 30, 2022

William Blair Funds

	Mid Cap Value Fund

	The Mid Cap Value Fund seeks long-term capital appreciation.

	AN OVERVIEW FROM THE PORTFOLIO MANAGERS

William Heaphy, CFA Matthew Fleming, CFA	The William Blair Mid Cap Value Fund (Class I shares) (the “Fund”) posted a 12.60% decrease, net of fees, for the period from inception on March 16, 2022 to June 30, 2022. By comparison, the Fund’s benchmark index, the Russell Midcap^®Value Index (the “Index”), decreased 10.57%. The Fund’s sector allocation was a headwind to relative performance in the partial period. A small cash holding, an overweight to the Health Care sector, and an underweight to the Communication Services sector were offset by an above Index allocation to the Information Technology sector and underweight to the Energy and Utilities sectors. Positively impacting performance for the partial period were the Fund’s investments in the Consumer Staples sector. The Fund’s investments in brewer Molson Coors Beveridge Company and food ingredient manufacturer Ingredion Inc. were both strong contributors as these companies reported solid earnings as their strong pricing power has allowed them to maintain margins in the current inflationary environment. On the negative side, the Fund’s investments in the Industrials segment were the worst performers and negatively impacted relative performance. Airline Alaska Air Group, Inc. and agricultural equipment manufacturer AGCO Corporation were large detractors to relative performance for the partial period. The Fund was also significantly underweight Energy shares, which was a large drag on relative performance as oil and natural gas prices spiked on the heels of the Russian invasion of Ukraine. An underweight position to the richly valued yet defensive Utilities sector also detracted from relative performance for the partial period. Please refer to the U.S. Value Market Review and Outlook relating to the Fund on page 4.

Semiannual Report

June 30, 2022

Mid Cap Value Fund

Performance Highlights (Unaudited)

Average Annual Total Returns through 6/30/2022
	Since Inception(a)
Class I		(12.60	)%
Class R6		(12.60	)
Russell Midcap^®Value Index		(10.57	)

(a)	Since inception is for the period from March 16, 2022 (Commencement of Operations) to June 30, 2022.

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 Midcap^® Value Index measures the performance of the mid-cap value segment of the U.S. equity universe. It includes those Russell Midcap companies with lower price-to-book ratios and lower forecasted growth values.

Sector Diversification (Unaudited)

The sector diversification shown is based on the total long-term securities.

June 30, 2022

William Blair Funds

Mid Cap Value Fund

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)



	Issuer	Shares		Value

	Common Stocks
	Financials—16.7%
*	Arch Capital Group, Ltd.†		700	$	32
	Comerica, Inc.		326		24
	East West Bancorp, Inc.		368		24
	Huntington Bancshares, Inc.		1,942		24
	Invesco, Ltd.†		1,306		21
	SLM Corporation		1,960		31
	Synovus Financial Corporation		590		21
	The Hartford Financial Services Group, Inc.		398		26
	Willis Towers Watson plc†		132		26
					229
	Industrials—16.2%
	Acuity Brands, Inc.		200		31
	AGCO Corporation		246		24
*	Alaska Air Group, Inc.		533		21
	Flowserve Corporation		590		17
	Knight-Swift Transportation Holdings, Inc.		592		28
	MSC Industrial Direct Co., Inc.		250		19
	Regal Rexnord Corporation		293		33
	Snap-on, Inc.		135		27
	The Timken Co.		420		22
					222
	Information Technology—14.0%
*	Check Point Software Technologies, Ltd.†		243		30
	Cognizant Technology Solutions Corporation		358		24
*	DXC Technology Co.		876		26
*	F5, Inc.		142		22
*	Flex, Ltd.†		1,540		22
	Hewlett Packard Enterprise Co.		1,897		25
	Jabil, Inc.		451		23
	Skyworks Solutions, Inc.		213		20
					192
	Health Care—13.4%
	AmerisourceBergen Corporation		170		24
*	Centene Corporation		439		37
	Encompass Health Corporation		408		23
*	Henry Schein, Inc.		359		28
*	Hologic, Inc.		396		27
	Laboratory Corporation of America Holdings		104		24
	Viatris, Inc.		2,020		21
					184
	Consumer Discretionary—9.7%
	Brunswick Corporation		287		19
	LKQ Corporation		577		29
*	Mohawk Industries, Inc.		162		20
	Ralph Lauren Corporation		260		23
	Toll Brothers, Inc.		495		22
	Whirlpool Corporation		131		20
					133



	Issuer	Shares		Value

	Common Stocks—(continued)
	Materials—9.0%
*	Axalta Coating Systems, Ltd.†		977	$	22
	Crown Holdings, Inc.		262		24
	Huntsman Corporation		988		28
	Sealed Air Corporation		481		28
	Westlake Corporation		218		21
					123
	Real Estate—7.7%
	Camden Property Trust		183		25
	Duke Realty Corporation		617		34
	Highwoods Properties, Inc.		611		21
	Host Hotels & Resorts, Inc.		1,676		26
					106
	Consumer Staples—6.0%
	Ingredion, Inc.		301		27
	Molson Coors Brewing Co.		590		32
	Tyson Foods, Inc.		271		23
					82
	Energy—2.3%
	Diamondback Energy, Inc.		266		32
	Utilities—2.3%
	Entergy Corporation		274		31
	Communication Services—1.3%
*	Warner Bros Discovery, Inc.		1,345		18
	Total Common Stocks—98.6% (cost $1,563)				1,352
	Total Investments—98.6% (cost $1,563)				1,352
	Cash and other assets, less liabilities—1.4%				20
	Net assets—100.0%			$	1,372

* = Non-income producing security

† = U.S. listed foreign security

See accompanying Notes to Financial Statements.

Semiannual Report

June 30, 2022

	Small-Mid Cap Core Fund

	The Small-Mid Cap Core Fund seeks long-term capital appreciation.

	AN OVERVIEW FROM THE PORTFOLIO MANAGERS

Daniel Crowe, CFA Ward D. Sexton, CFA	The William Blair Small-Mid Cap Core Fund (Class I shares) (the “Fund”) posted a 21.77% decrease, net of fees, for the six months ended June 30, 2022. By comparison, the Fund’s benchmark index, the Russell 2500™ Index (the “Index”), decreased 21.81%. The Fund modestly trailed its Index in the year-to-date period, driven by a combination of style factors and stock-specific dynamics. From a style perspective, while our typical underweight to companies without earnings was a modest tailwind, our underweight to the cheapest stocks in the Index was an offsetting headwind. Notably, among companies with earnings, there was minimal performance differentiation on quality factors, which did not provide their typical down-market benefit. From a stock perspective, our top detractors included Kornit Digital (Industrials), Coupa Software (Information Technology), Trex Company (Industrials) and Builders FirstSource (Industrials). Kornit Digital, a manufacturer of innovative digital textile printers and inks, experienced macro-related headwinds that impacted orders. Coupa Software, a provider of a cloud-based business spending management platform, reported a slowdown of demand in Europe, primarily due to the ongoing Russia/Ukraine crisis. Stock selection in Consumer Discretionary, including our position in Burlington Stores, also detracted from relative returns. Conversely, our top contributors included New Fortress Energy (Energy), Whitecap Resources (Energy), CF Industries (Materials), BWX Technologies (Industrials) and Mercury Systems (Industrials). New Fortress Energy develops, finances and constructs liquified natural gas assets and related infrastructure. The company announced a number of project milestones and shares were further supported by a strong backdrop to sign new deals. Whitecap Resources is a Canadian exploration & production company that sources a portion of its production from tertiary oil recovery (CO2 injections), which lowers its carbon footprint. A number of accretive acquisitions by the company, a material share buyback and a dividend raise all contributed to outperformance in the period. Please refer to the U.S. Growth & Core Market Review and Outlook relating to the Fund on page 3.

June 30, 2022

William Blair Funds

Small-Mid Cap Core Fund

Performance Highlights (Unaudited)

Average Annual Total Returns through 6/30/2022
	Year to Date			1 Year			Since Inception(a)
Class I		(21.77	)%		(16.27	)%		9.29	%
Class R6		(21.75	)		(16.26	)		9.33
Russell 2500^TMIndex		(21.81	)		(21.00	)		6.96

(a)	Since inception is for the period from October 1, 2019 (Commencement of Operations) to June 30, 2022.

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 2500^TMIndex measures the performance of those Russell 2500 companies with above average price-to-book ratios and forecasted growth rates.

Sector Diversification (Unaudited)

The sector diversification shown is based on the total long-term securities.

Semiannual Report

June 30, 2022

Small-Mid Cap Core Fund

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)



	Issuer	Shares		Value

	Common Stocks
	Industrials—20.0%
*	Axon Enterprise, Inc.		19,148	$	1,784
*	Builders FirstSource, Inc.		37,916		2,036
	BWX Technologies, Inc.		37,661		2,075
*	Casella Waste Systems, Inc.		22,198		1,613
*	Chart Industries, Inc.		12,312		2,061
	Douglas Dynamics, Inc.		21,093		606
*	Energy Recovery, Inc.		64,235		1,247
*	Kornit Digital, Ltd.†		18,560		588
	Lincoln Electric Holdings, Inc.		11,290		1,393
*	Mercury Systems, Inc.		36,717		2,362
	Owens Corning		14,483		1,076
*	Shoals Technologies Group, Inc.		72,184		1,190
*	Stem, Inc.		110,453		791
	The Brink’s Co.		29,417		1,786
*	Trex Co., Inc.		22,786		1,240
*	WillScot Mobile Mini Holdings Corporation		55,279		1,792
					23,640
	Health Care—16.7%
*	Acadia Healthcare Co., Inc.		27,589		1,866
	Azenta, Inc.		16,679		1,203
*	Certara, Inc.		46,985		1,008
	Chemed Corporation		2,866		1,345
*	Globus Medical, Inc.		29,290		1,644
*	Halozyme Therapeutics, Inc.		29,203		1,285
*	Hanger, Inc.		50,969		730
*	Horizon Therapeutics plc†		11,219		895
*	Ligand Pharmaceuticals, Inc.		8,582		766
*	Merit Medical Systems, Inc.		37,373		2,028
	Owens & Minor, Inc.		86,774		2,729
*	Penumbra, Inc.		5,509		686
*	Repligen Corporation		7,485		1,216
*	Sotera Health Co.		54,634		1,070
	STERIS plc†		6,043		1,246
					19,717
	Financials—12.7%
	Ares Management Corporation		25,483		1,449
	Columbia Banking System, Inc.		43,711		1,252
	East West Bancorp, Inc.		29,629		1,920
	Hannon Armstrong Sustainable Infrastructure Capital, Inc.		32,843		1,244
	LPL Financial Holdings, Inc.		8,452		1,559
	PacWest Bancorp		63,851		1,702
	Virtu Financial, Inc.		81,973		1,919
	Western Alliance Bancorp		33,754		2,383
	Wintrust Financial Corporation		19,073		1,529
					14,957
	Information Technology—11.9%
*	Alarm.com Holdings, Inc.		15,475		957
*	Coupa Software, Inc.		15,148		865
*	Dynatrace, Inc.		28,145		1,110
	Entegris, Inc.		8,913		821
*	Euronet Worldwide, Inc.		16,873		1,697
	MKS Instruments, Inc.		7,829		804
*	Nice, Ltd.—ADR		5,889		1,133
	Power Integrations, Inc.		15,801		1,185
*	Pure Storage, Inc.		47,626		1,225
*	SolarEdge Technologies, Inc.		5,702		1,561
*	Verra Mobility Corporation		132,362		2,079
*	Wolfspeed, Inc.		8,809		559
					13,996



	Issuer	Shares		Value

	Common Stocks—(continued)
	Consumer Discretionary—10.2%
	Aramark		46,311	$	1,418
*	Boot Barn Holdings, Inc.		9,954		686
*	Bright Horizons Family Solutions, Inc.		9,532		806
*	Burlington Stores, Inc.		6,338		863
*	Fox Factory Holding Corporation		10,505		846
*	Leslie’s, Inc.		69,343		1,053
*	National Vision Holdings, Inc.		60,945		1,676
*	Overstock.com, Inc.		16,178		405
*	Petco Health & Wellness Co., Inc.		69,160		1,019
*	Revolve Group, Inc.		29,684		769
*	Skyline Champion Corporation		28,459		1,349
	Wyndham Hotels & Resorts, Inc.		18,360		1,207
					12,097
	Energy—7.9%
	Cameco Corporation		100,352		2,110
*	Denbury, Inc.		23,501		1,410
*	Green Plains, Inc.		41,967		1,140
	New Fortress Energy, Inc.		37,320		1,477
*	TechnipFMC plc†		212,538		1,430
	Whitecap Resources, Inc.		257,289		1,793
					9,360
	Real Estate—5.4%
	Americold Realty Trust		45,890		1,379
	Equity LifeStyle Properties, Inc.		23,775		1,675
	Healthcare Realty Trust, Inc.		75,811		2,062
	Pebblebrook Hotel Trust		43,339		718
*	The Howard Hughes Corporation		7,187		489
					6,323
	Materials—4.5%
*	Century Aluminum Co.		70,161		517
	CF Industries Holdings, Inc.		20,674		1,773
	Crown Holdings, Inc.		21,915		2,020
	Eagle Materials, Inc.		9,098		1,000
					5,310
	Consumer Staples—4.1%
	Inter Parfums, Inc.		15,619		1,141
*	Performance Food Group Co.		29,575		1,360
	Primo Water Corporation		60,898		815
	Spectrum Brands Holdings, Inc.		17,986		1,475
					4,791
	Communication Services—2.3%
	Cable One, Inc.		773		997
*	Live Nation Entertainment, Inc.		8,020		662
*	ZipRecruiter, Inc.		70,179		1,040
					2,699
	Utilities—1.6%
	IDACORP, Inc.		18,313		1,940
	Total Common Stocks—97.3% (cost $133,302)				114,830

See accompanying Notes to Financial Statements.

June 30, 2022

William Blair Funds

Small-Mid Cap Core Fund

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)


Issuer	Principal Amount		Value

Repurchase Agreement
Fixed Income Clearing Corporation, 0.240% dated 6/30/22, due 7/1/22, repurchase price $3,125, collateralized by U.S. Treasury Note, 1.625%, due 05/15/31, valued at $3,188		$3,125	$	3,125
Total Repurchase Agreement—2.6% (cost $3,125)				3,125
Total Investments—99.9% (cost $136,427)				117,955
Cash and other assets, less liabilities—0.1%				124
Net assets—100.0%			$	118,079

ADR = American Depository Receipt

* = Non-income producing security

† = U.S. listed foreign security

See accompanying Notes to Financial Statements.

Semiannual Report

June 30, 2022

	Small-Mid Cap Growth Fund

	The Small-Mid Cap Growth Fund seeks long-term capital appreciation.

	AN OVERVIEW FROM THE PORTFOLIO MANAGERS

Daniel Crowe, CFA James E. Jones, CFA	The William Blair Small-Mid Cap Growth Fund (Class N shares) (the “Fund”) posted a 28.60% decrease, net of fees, for the six months ended June 30, 2022. By comparison, the Fund’s benchmark index, the Russell 2500™ Growth Index (the “Index”), decreased 29.45%. The Fund modestly outperformed its Index in the year-to-date period, driven by a combination of style factors and stock-specific dynamics. From a style perspective, our typical underweight to companies without earnings was a modest tailwind. Notably, among companies with earnings, there was minimal performance differentiation on quality factors, which did not provide their typical down-market benefit. From a stock-specific perspective, our top individual contributors were BWX Technologies (Industrials), Mercury Systems (Industrials), Acadia Healthcare (Health Care), New Fortress (Energy) and HealthEquity (Health Care). Shares of BWX Technologies advanced for the reasons outlined above. Mercury Systems, a provider of sensor processing subsystems, reported strong organic revenue growth and orders against a more supportive backdrop for defense spending. Conversely, our top individual detractors included Trex Company (Industrials), Coupa Software (Information Technology), Revolve Group (Consumer Discretionary), Penumbra (Health Care) and Kornit Digital (Industrials). Shares of Trex, the industry leader in composite residential decking, were pressured by higher-than-expected sales and marketing expense forecasts and concerns that higher interest rates could dampen demand. Coupa Software, provider of a cloud-based business spend management platform, reported a slowdown of demand in Europe, primarily due to the ongoing Russia/Ukraine crisis. Please refer to the U.S. Growth & Core Market Review and Outlook relating to the Fund on page 3.

June 30, 2022

William Blair Funds

Small-Mid Cap Growth Fund

Performance Highlights (Unaudited)

Average Annual Total Returns through 6/30/2022
	Year to Date			1 Year			3 Year			5 Year			10 Year			Since Inception(a)
Class N		(28.60	)%		(28.45	)%		2.32	%		7.60	%		11.78	%		—	%
Class I		(28.51	)		(28.26	)		2.57			7.86			12.06			—
Class R6		(28.49	)		(28.21	)		2.63			—			—			3.43
Russell 2500^TM Growth Index		(29.45	)		(31.81	)		3.68			7.53			10.88			4.07

(a)	Since inception is for the period from May 2, 2019 (Commencement of Operations) to June 30, 2022.

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 2500^TM Growth Index measures the performance of those Russell 2500 companies with above average price-to-book ratios and forecasted growth rates.

Sector Diversification (Unaudited)

The sector diversification shown is based on the total long-term securities.

Semiannual Report

June 30, 2022

Small-Mid Cap Growth Fund

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)



	Issuer	Shares		Value

	Common Stocks
	Information Technology—22.7%
*	Alarm.com Holdings, Inc.		425,741	$	26,336
*	Avalara, Inc.		380,549		26,867
	Cognex Corporation		440,247		18,719
*	Coupa Software, Inc.		223,609		12,768
*	Dynatrace, Inc.		1,073,286		42,330
	Entegris, Inc.		315,376		29,056
*	Euronet Worldwide, Inc.		451,480		45,414
*	Guidewire Software, Inc.		320,755		22,770
	MKS Instruments, Inc.		194,765		19,989
	National Instruments Corporation		965,848		30,164
*	Nice, Ltd.—ADR		149,468		28,765
*	Novanta, Inc.†		179,054		21,714
*	PagerDuty, Inc.		797,309		19,757
*	Pure Storage, Inc.		1,121,848		28,843
*	SolarEdge Technologies, Inc.		177,241		48,507
*	Varonis Systems, Inc.		968,432		28,395
*	Wolfspeed, Inc.		202,213		12,831
*	Workiva, Inc.		165,892		10,947
					474,172
	Health Care—21.5%
*	ABIOMED, Inc.		129,433		32,036
*	Acadia Healthcare Co., Inc.		638,780		43,201
	Azenta, Inc.		523,316		37,731
*	Blueprint Medicines Corporation		193,004		9,749
*	Certara, Inc.		775,535		16,643
*	Charles River Laboratories International, Inc.		165,037		35,313
	Chemed Corporation		77,684		36,464
*	Globus Medical, Inc.		233,195		13,091
*	Halozyme Therapeutics, Inc.		738,877		32,510
*	HealthEquity, Inc.		470,708		28,897
*	Horizon Therapeutics plc†		288,306		22,995
*	Insmed, Inc.		645,551		12,730
*	Inspire Medical Systems, Inc.		111,542		20,375
*	Insulet Corporation		106,546		23,221
*	Merit Medical Systems, Inc.		455,026		24,694
*	Penumbra, Inc.		158,021		19,677
*	Repligen Corporation		135,300		21,973
*	Twist Bioscience Corporation		505,773		17,682
					448,982
	Industrials—20.5%
	Advanced Drainage Systems, Inc.		186,000		16,753
*	Axon Enterprise, Inc.		392,948		36,611
*	Builders FirstSource, Inc.		940,115		50,484
	BWX Technologies, Inc.		1,093,252		60,227
*	Casella Waste Systems, Inc.		279,461		20,311
*	Chart Industries, Inc.		221,544		37,082
	HEICO Corporation		179,156		18,880
	Lincoln Electric Holdings, Inc.		174,735		21,555
*	Mercury Systems, Inc.		758,501		48,795
	Ritchie Bros Auctioneers, Inc.		341,503		22,218
*	Shoals Technologies Group, Inc.		945,768		15,586
*	Stem, Inc.		803,329		5,752
	The Brink’s Co.		710,416		43,129
*	Trex Co., Inc.		569,221		30,977
					428,360
	Consumer Discretionary—12.9%
*	Bright Horizons Family Solutions, Inc.		238,501		20,158
*	Burlington Stores, Inc.		123,961		16,887
*	Fox Factory Holding Corporation		287,006		23,115

	Issuer	Shares or Principal Amount		Value

	Common Stocks—(continued)
	Consumer Discretionary—(continued)
*	Helen of Troy, Ltd.†		4,502	$	731
*	Leslie’s, Inc.		2,016,774		30,615
*	National Vision Holdings, Inc.		1,259,162		34,627
*	Overstock.com, Inc.		503,901		12,602
*	Petco Health & Wellness Co., Inc.		1,426,100		21,021
*	Planet Fitness, Inc.		245,400		16,690
	Pool Corporation		65,082		22,859
*	Revolve Group, Inc.		1,010,992		26,195
	Wyndham Hotels & Resorts, Inc.		680,245		44,706
					270,206
	Energy—5.7%
	Cameco Corporation		1,911,062		40,171
*	Denbury, Inc.		534,685		32,076
	New Fortress Energy, Inc.		735,212		29,092
	Whitecap Resources, Inc.		2,565,700		17,883
					119,222
	Materials—5.1%
	CF Industries Holdings, Inc.		395,631		33,918
	Crown Holdings, Inc.		582,287		53,669
	Martin Marietta Materials, Inc.		65,496		19,599
					107,186
	Financials—4.4%
	Ares Management Corporation		528,540		30,053
	Virtu Financial, Inc.		1,279,536		29,954
	Western Alliance Bancorp		468,082		33,046
					93,053
	Consumer Staples—3.2%
*	Celsius Holdings, Inc.		267,258		17,441
*	Performance Food Group Co.		821,795		37,786
*	The Beauty Health Co.		868,022		11,163
					66,390
	Communication Services—1.9%
	Cable One, Inc.		19,646		25,330
*	Live Nation Entertainment, Inc.		183,060		15,117
					40,447
	Real Estate—1.0%
	FirstService Corporation		167,968		20,358
	Total Common Stocks—98.9% (cost $2,136,540)				2,068,376

	Repurchase Agreement
	Fixed Income Clearing Corporation, 0.240% dated 6/30/22, due 7/1/22, repurchase price $51,493, collateralized by U.S. Treasury Note, 1.625%, due 05/15/31, valued at $52,522		$51,492		51,492
	Total Repurchase Agreement—2.4% (cost $51,492)				51,492	��
	Total Investments—101.3% (cost $2,188,032)				2,119,868
	Liabilities, plus cash and other assets—(1.3)%				(28,199	)
	Net assets—100.0%			$	2,091,669

ADR = American Depository Receipt

* = Non-income producing security

† = U.S. listed foreign security

See accompanying Notes to Financial Statements.

June 30, 2022

William Blair Funds

	Small Cap Growth Fund

	The Small Cap Growth Fund seeks long-term capital appreciation.

	AN OVERVIEW FROM THE PORTFOLIO MANAGERS

Ward D. Sexton, CFA Mark C. Thompson, CFA	The William Blair Small Cap Growth Fund (Class N shares) (the “Fund”) posted a 27.96% decrease, net of fees, for the six months ended June 30, 2022. By comparison, the Fund’s benchmark index, the Russell 2000^®Growth Index (the “Index”), decreased 29.45%. The Fund outperformed the Index in the year-to-date period, driven by a combination of style factors and stock-specific dynamics. From a style perspective, our typical valuation sensitivity was a modest tailwind as the more attractively valued stocks in the Index outperformed during the period. From a stock-specific perspective, selection in Information Technology, including our position in Verra Mobility, contributed positively to relative returns. Our top individual contributors included BWX Technologies (Industrials), Gogo (Communication Services), Acadia Healthcare (Health Care) and Mercury Systems (Industrials). Shares of BWX Technologies advanced for the reasons outlined above. Gogo, a provider of telecommunication services to the business aviation market, reported strong earnings results across all important metrics. Conversely, our top individual detractors included Kornit Digital (Industrials), Health Catalyst (Health Care), Codexis (Health Care), Montrose Environmental Group (Industrials) and Overstock.com (Consumer Discretionary). Kornit Digital, a manufacturer of innovative digital textile printers and inks, experienced macro-related headwinds that impacted orders. We liquidated our position in Health Catalyst, a provider of healthcare software solutions, during the period as we believe the market downturn is likely to slow future booking for the company, delaying the path of sustainable profit generation. Please refer to the U.S. Growth & Core Market Review and Outlook relating to the Fund on page 3.

Semiannual Report

June 30, 2022

Small Cap Growth Fund

Performance Highlights (Unaudited)

Average Annual Total Returns through 6/30/2022
	Year to Date			1 Year			3 Year			5 Year			10 Year			Since Inception(a)
Class N		(27.96	)%		(27.92	)%		4.95	%		8.11	%		12.63	%		—	%
Class I		(27.88	)		(27.74	)		5.21			8.39			12.91			—
Class R6		(27.85	)		(27.68	)		5.29			—			—			4.96
Russell 2000^® Growth Index		(29.45	)		(33.43	)		1.40			4.80			9.30			1.57

(a)	Since inception is for the period from May 2, 2019 (Commencement of Operations) to June 30, 2022.

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.

Sector Diversification (Unaudited)

The sector diversification shown is based on the total long-term securities.

June 30, 2022

William Blair Funds

Small Cap Growth Fund

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)



	Issuer	Shares		Value

	Common Stocks
	Health Care—24.2%
*	Acadia Healthcare Co., Inc.		113,229	$	7,658
*	Amicus Therapeutics, Inc.		718,590		7,718
*	Artivion, Inc.		14,550		275
*	Axogen, Inc.		462,234		3,786
	Azenta, Inc.		139,815		10,081
*	Blueprint Medicines Corporation		43,880		2,216
*	Certara, Inc.		315,013		6,760
*	Codexis, Inc.		291,311		3,047
*	Globus Medical, Inc.		74,370		4,175
*	Halozyme Therapeutics, Inc.		198,880		8,751
*	Hanger, Inc.		359,665		5,150
*	HealthEquity, Inc.		111,295		6,832
*	Insmed, Inc.		136,770		2,697
*	Inspire Medical Systems, Inc.		39,040		7,131
*	Ligand Pharmaceuticals, Inc.		80,348		7,169
*	Merit Medical Systems, Inc.		175,520		9,525
	Owens & Minor, Inc.		175,230		5,511
*	Penumbra, Inc.		39,470		4,915
*	Pulmonx Corporation		197,001		2,900
*	Treace Medical Concepts, Inc.		231,080		3,314
*	Twist Bioscience Corporation		94,366		3,299
*	Veracyte, Inc.		148,450		2,954
*	Vericel Corporation		129,930		3,272
					119,136
	Industrials—21.1%
*	ACV Auctions, Inc.		302,590		1,979
	Albany International Corporation		102,855		8,104
*	Builders FirstSource, Inc.		91,750		4,927
	BWX Technologies, Inc.		234,209		12,903
*	Casella Waste Systems, Inc.		137,620		10,002
	Douglas Dynamics, Inc.		169,843		4,881
*	Ducommun, Inc.		147,682		6,356
*	Energy Recovery, Inc.		372,116		7,227
*	IAA, Inc.		55,849		1,830
*	Kornit Digital, Ltd.†		87,190		2,764
	Lincoln Electric Holdings, Inc.		50,720		6,257
	Luxfer Holdings plc†		482,386		7,294
*	Mercury Systems, Inc.		147,476		9,487
*	Montrose Environmental Group, Inc.		172,978		5,840
*	Stem, Inc.		482,466		3,454
	The Brink’s Co.		174,236		10,578
					103,883
	Information Technology—19.6%
*	Alarm.com Holdings, Inc.		97,160		6,010
	American Software, Inc.		271,250		4,383
*	BTRS Holdings, Inc.		344,190		1,714
	Computer Services, Inc.		110,579		4,087
*	Coupa Software, Inc.		77,220		4,409
*	Euronet Worldwide, Inc.		59,830		6,018
*	Grid Dynamics Holdings, Inc.		295,928		4,978
*	Novanta, Inc.†		38,750		4,699
*	PagerDuty, Inc.		162,410		4,025



	Issuer	Shares		Value

	Common Stocks—(continued)
	Information Technology—(continued)
*	PDF Solutions, Inc.		223,787	$	4,814
	Power Integrations, Inc.		57,270		4,296
*	PROS Holdings, Inc.		190,330		4,992
*	Pure Storage, Inc.		187,166		4,812
*	SiTime Corporation		29,575		4,822
*	Upland Software, Inc.		107,526		1,561
*	Varonis Systems, Inc.		189,960		5,570
*	Verra Mobility Corporation		714,459		11,224
*	Vertex, Inc.		331,019		3,751
*	WNS Holdings, Ltd.—ADR		92,312		6,890
*	Workiva, Inc.		53,850		3,554
					96,609
	Consumer Discretionary—9.3%
*	Boot Barn Holdings, Inc.		49,174		3,389
*	Fox Factory Holding Corporation		52,430		4,223
*	National Vision Holdings, Inc.		293,478		8,071
*	Overstock.com, Inc.		229,650		5,743
*	Revolve Group, Inc.		166,227		4,307
*	Rush Street Interactive, Inc.		394,340		1,841
*	Skyline Champion Corporation		159,270		7,553
	The Cheesecake Factory, Inc.		200,590		5,300
	Winmark Corporation		27,920		5,460
					45,887
	Energy—7.6%
	Cameco Corporation		468,140		9,840
	ChampionX Corporation		168,960		3,354
*	Denbury, Inc.		91,609		5,496
*	Green Plains, Inc.		185,462		5,039
*	TechnipFMC plc†		1,061,880		7,146
	Whitecap Resources, Inc.		910,920		6,349
					37,224
	Consumer Staples—4.6%
*	Celsius Holdings, Inc.		78,360		5,114
*	Performance Food Group Co.		160,700		7,389
*	The Beauty Health Co.		551,360		7,090
*	Vital Farms, Inc.		341,910		2,992
					22,585
	Communication Services—3.6%
*	Gogo, Inc.		266,120		4,308
*	QuinStreet, Inc.		264,155		2,657
*	Ziff Davis Inc		85,503		6,373
*	ZipRecruiter, Inc.		286,350		4,244
					17,582
	Materials—2.9%
	Ardagh Metal Packaging S.A.†		696,080		4,246
*	Century Aluminum Co.		231,930		1,709
	Orion Engineered Carbons S.A.†		521,187		8,094
					14,049

See accompanying Notes to Financial Statements.

Semiannual Report

June 30, 2022

Small Cap Growth Fund

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)

Issuer	Shares or Principal Amount		Value

Common Stocks—(continued)
Real Estate—2.6%
Colliers International Group, Inc.		52,228	$	5,730
FirstService Corporation		59,697		7,235
				12,965
Financials—2.0%
PacWest Bancorp		181,500		4,839
Wintrust Financial Corporation		61,540		4,932
				9,771
Total Common Stocks—97.5% (cost $499,005)				479,691

Repurchase Agreement
Fixed Income Clearing Corporation, 0.240% dated 6/30/22, due 7/1/22, repurchase price $12,729, collateralized by U.S. Treasury Note, 1.625%, due 05/15/31, valued at $12,984		$12,729		12,729
Total Repurchase Agreement—2.6% (cost $12,729)				12,729
Total Investments—100.1% (cost $511,734)				492,420
Liabilities, plus cash and other assets—(0.1)%				(528	)
Net assets—100.0%			$	491,892

ADR = American Depository Receipt

* = Non-income producing security

† = U.S. listed foreign security

See accompanying Notes to Financial Statements.

June 30, 2022

William Blair Funds

	Small Cap Value Fund

	The Small Cap Value Fund seeks long-term capital appreciation.

	AN OVERVIEW FROM THE PORTFOLIO MANAGERS

William Heaphy, CFA Gary Merwitz	The William Blair Small Cap Value Fund (Class N shares) (the “Fund”) posted a 15.37% decrease, net of fees, for the six months ended June 30, 2022. By comparison, the Fund’s benchmark index, the Russell 2000^®Value Index (the “Index”), decreased 17.31%. The Fund’s relative outperformance was driven by the combination of stock selection and style observations during the period. From a style perspective, the value indices have continued to witness a pronounced shift in investor preference for higher quality stocks with cheaper valuations which provided the Fund with a tailwind in the first half of 2022 despite a difficult equity market. At the sector level, the Fund’s Health Care holdings were the largest contributor to relative performance in the first half of 2022. A lack of exposure to the biotechnology subsector was a major contributor to this result, but several of the Fund’s Health Care holdings posted impressive returns, including health care supplier Lantheus Holdings. The Fund also benefitted from substantial outperformance from its Materials sector investments, which declined a modest 8.7% for the first half of 2022 versus a much larger 20.4% fall for the Index constituents. Much of this outperformance came from our industrial packaging companies which gained 9.9% collectively. These companies have reported solid earnings as their strong pricing power has allowed them to maintain margins in the current inflationary environment. The Fund also benefitted from very little exposure to commodity metals and chemical companies that struggled late in the second quarter as fears of weakening global growth increased. On the negative side, the Fund’s Energy sector holdings struggled during the first half of 2022 to keep pace with the Index constituents. The Fund was significantly underweight Energy shares in the first half of the year, which was a large drag on relative performance as oil and natural gas prices spiked. However, this trend reversed abruptly in the last two weeks of June when commodities plunged. While the Fund’s holdings in exploration and production stocks held up relative to the Index, the Fund’s Energy equipment and services companies holdings underperformed. The Fund’s exposure to companies serving the offshore drilling market was the cause of this relative underperformance as the market favored companies benefitting from the increase in onshore shale drilling which is ramping up faster. An underweight position to the richly valued yet defensive Utilities sector also detracted from relative performance for the first half of 2022. Please refer to the U.S. Value Market Review and Outlook relating to the Fund on page 4.


28	Semiannual Report	June 30, 2022

Small Cap Value Fund

Performance Highlights (Unaudited)

Average Annual Total Returns through 6/30/2022

	Year to Date			1 Year			3 Year			5 Year			10 Year			Since Inception(a)
Class N		(15.37	)%		—	%		—	%		—	%		—	%		(8.10	)%
Class I		(15.25	)		(12.36	)		6.64			6.22			10.35			—
Class R6		(15.19	)		—			—			—			—			(7.75	)
Russell 2000^® Value Index		(17.31	)		(16.28	)		6.18			4.89			9.05			(11.20	)


(a)	Since inception is for the period from July 17, 2021 (Commencement of Operations) to June 30, 2022.

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.

Sector Diversification (Unaudited)

The sector diversification shown is based on the total long-term securities.

June 30, 2022

William Blair Funds

Small Cap Value Fund

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)



	Issuer	Shares		Value

	Common Stocks
	Financials—22.5%
	Ameris Bancorp		343,335	$	13,795
	Argo Group International Holdings, Ltd.†		351,322		12,950
	Atlantic Union Bankshares Corporation		402,084		13,639
	Banc of California, Inc.		808,956		14,254
	Berkshire Hills Bancorp, Inc.		523,377		12,964
	Brightsphere Investment Group, Inc.		520,792		9,379
	Compass Diversified Holdings		634,471		13,590
	ConnectOne Bancorp, Inc.		453,352		11,084
	Dime Community Bancshares, Inc.		462,010		13,699
	Eastern Bankshares, Inc.		812,761		15,004
	Enterprise Financial Services Corporation		304,714		12,646
	First Bancorp		289,892		10,117
	First Merchants Corporation		360,059		12,825
	MGIC Investment Corporation		1,023,594		12,897
	Old National Bancorp		902,500		13,348
	Pacific Premier Bancorp, Inc.		377,703		11,044
	PJT Partners, Inc.		48,054		3,377
*	PRA Group, Inc.		415,499		15,108
	Seacoast Banking Corporation of Florida		423,059		13,978
	Simmons First National Corporation		561,718		11,942
*	Texas Capital Bancshares, Inc.		280,316		14,756
	Veritex Holdings, Inc.		367,303		10,747
	Washington Federal, Inc.		404,625		12,147
					285,290
	Industrials—21.2%
	ABM Industries, Inc.		354,422		15,389
	Albany International Corporation		188,092		14,820
	Armstrong World Industries, Inc.		167,907		12,586
	Astec Industries, Inc.		130,276		5,313
	Brady Corporation		295,410		13,955
*	CBIZ, Inc.		410,610		16,408
	Deluxe Corporation		451,594		9,786
	Federal Signal Corporation		428,830		15,266
	GrafTech International, Ltd.		1,335,219		9,440
	Granite Construction, Inc.		386,154		11,252
*	Great Lakes Dredge & Dock Corporation		1,055,725		13,840
*	Harsco Corporation		770,106		5,475
	Hillenbrand, Inc.		328,532		13,457
	*Hub Group, Inc.		226,033		16,035
	ICF International, Inc.		85,811		8,152
	Kaman Corporation		139,735		4,367
*	KAR Auction Services, Inc.		624,627		9,226
	Marten Transport, Ltd.		670,508		11,278
	MillerKnoll, Inc.		484,618		12,731
	Mueller Water Products, Inc.		544,854		6,391
*	PGT Innovations, Inc.		619,045		10,301
*	SP Plus Corporation		344,364		10,579
	Terex Corporation		413,183		11,309
	Werner Enterprises, Inc.		304,949		11,753
					269,109



	Issuer	Shares		Value

	Common Stocks—(continued)
	Information Technology—12.9%
	Advanced Energy Industries, Inc.		122,745	$	8,958
	AudioCodes, Ltd.†		455,159		10,032
	Belden, Inc.		376,327		20,047
*	Cognyte Software, Ltd.†		1,192,969		5,070
*	Conduent, Inc.		2,386,136		10,308
	CSG Systems International, Inc.		217,897		13,004
*	Knowles Corporation		739,830		12,821
	Kulicke & Soffa Industries, Inc.		234,682		10,047
	Maximus, Inc.		189,302		11,833
	Methode Electronics, Inc.		376,698		13,953
*	NetScout Systems, Inc.		496,661		16,812
*	Plexus Corporation		179,116		14,061
	Progress Software Corporation		359,192		16,271
					163,217
	Consumer Discretionary—11.7%
*	Adient plc†		326,970		9,688
	Bloomin’ Brands, Inc.		688,405		11,441
	Carter’s, Inc.		171,094		12,059
	Cracker Barrel Old Country Store, Inc.		97,028		8,101
	Designer Brands, Inc.		809,445		10,572
*	El Pollo Loco Holdings, Inc.		621,574		6,116
	La-Z-Boy, Inc.		527,163		12,499
	Oxford Industries, Inc.		159,638		14,166
	Standard Motor Products, Inc.		411,785		18,526
*	Taylor Morrison Home Corporation		424,275		9,911
*	Tri Pointe Homes, Inc.		539,176		9,096
*	Universal Electronics, Inc.		237,226		6,066
*	Urban Outfitters, Inc.		480,239		8,961
	Winnebago Industries, Inc.		219,195		10,644
					147,846
	Real Estate—6.2%
	Brandywine Realty Trust		720,012		6,941
	CareTrust REIT, Inc.		210,636		3,884
	CatchMark Timber Trust, Inc.		194,326		1,955
	Empire State Realty Trust, Inc.		1,258,988		8,851
	Four Corners Property Trust, Inc.		404,189		10,747
	Kite Realty Group Trust		874,358		15,118
	Pebblebrook Hotel Trust		629,135		10,425
*	Sunstone Hotel Investors, Inc.		1,047,178		10,388
	UMH Properties, Inc.		612,875		10,823
					79,132
	Materials—6.1%
	Greif, Inc.		226,544		14,132
	Kaiser Aluminum Corporation		146,357		11,575
	Materion Corporation		200,039		14,749
	Minerals Technologies, Inc.		179,067		10,984
	Myers Industries, Inc.		567,359		12,896
	Orion Engineered Carbons S.A.†		856,092		13,295
					77,631

See accompanying Notes to Financial Statements.

Semiannual Report

June 30, 2022

Small Cap Value Fund

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)

	Issuer	Shares or Principal Amount		Value

	Common Stocks—(continued)
	Health Care—5.2%
*	ANI Pharmaceuticals, Inc.		211,822	$	6,285
*	Hanger, Inc.		633,700		9,074
*	Lantheus Holdings, Inc.		295,106		19,486
*	ModivCare, Inc.		111,723		9,441
*	NextGen Healthcare, Inc.		410,198		7,154
*	NuVasive, Inc.		52,772		2,594
	Owens & Minor, Inc.		385,997		12,140
					66,174
	Energy—4.9%
*	Dril-Quip, Inc.		426,348		11,000
*	Earthstone Energy, Inc.		596,341		8,140
*	Expro Group Holdings N.V.†		833,906		9,607
	Matador Resources Co.		431,861		20,120
	SM Energy Co.		407,370		13,928
					62,795
	Consumer Staples—4.9%
	Cal-Maine Foods, Inc.		286,258		14,144
*	Central Garden & Pet Co.		277,891		11,119
	Edgewell Personal Care Co.		382,420		13,201
	Spectrum Brands Holdings, Inc.		117,841		9,665
*	TreeHouse Foods, Inc.		331,477		13,862
					61,991
	Utilities—2.2%
	NorthWestern Corporation		240,117		14,150
	Spire, Inc.		178,311		13,261
					27,411
	Communication Services—1.1%
	John Wiley & Sons, Inc.		301,770		14,413
	Total Common Stocks—98.9% (cost $1,300,140)				1,255,009

	Repurchase Agreement
	Fixed Income Clearing Corporation, 0.240% dated 6/30/22, due 7/1/22, repurchase price $9,674, collateralized by U.S. Treasury Note, 1.625%, due 05/15/31, valued at $9,868		$9,674		9,674
	Total Repurchase Agreement—0.8% (cost $9,674)				9,674
	Total Investments—99.7% (cost $1,309,814)				1,264,683
	Cash and other assets, less liabilities—0.3%				4,017
	Net assets—100.0%			$	1,268,700

REIT = Real Estate Investment Trust

† = U.S. listed foreign security

* = Non-income producing security

See accompanying Notes to Financial Statements.

June 30, 2022

William Blair Funds

Global Markets Review and Outlook

Financial markets remained turbulent through the second quarter of 2022 as heightened inflationary pressures, the prospect for more aggressive interest rate hikes, and the ongoing war in Ukraine continued to weigh on investor sentiment. Global equities declined further (the MSCI ACWI IMI returned -15.83% in the second quarter and -20.44% for the six months ended June 30, 2022, in USD terms). Growth equities continued to underperform value-oriented equities (the MSCI ACWI IMI Growth declined 20.10% for the second quarter and 27.95% for the six months ended June 30, 2022, while the MSCI ACWI IMI Value declined 11.88% for the second quarter and 12.83% for the six months ended June 30, 2022). This was evident from a global sector perspective as Information Technology (-21.67% for the second quarter and -29.8% for the six months ended June 30, 2022, measured by the MSCI AC World IMI) and Consumer Discretionary (-20.09% for the second quarter and -29.38% for the six months ended June 30, 2022, measured by the MSCI AC World IMI) declined while energy stocks continued to stay positive on a year-to-date basis (-5.77% for the second quarter and +15.57% for the six months ended June 30, 2022, measured by the MSCI AC World IMI) on strong crude oil prices. The underperformance of growth equities has been highly correlated to inflationary pressures and rapid increase in interest rates, which has led to significant multiple contraction for growth and long-duration companies in particular.

Developed markets declined (-16.31% for the second quarter and -20.76% for the six months ended June 30, 2022) as measured by the MSCI World IMI. U.S. equities declined (-16.85% for the second quarter and -21.33% for the six months ended June 30, 2022, measured by the MSCI USA IMI) as U.S. yields hit levels that haven’t been seen in nearly a decade. In June, headline inflation surged to 8.6% year-on-year, hitting yet another 40-year high, modestly higher than consensus. The Federal Reserve approved an interest rate increase of 0.75%, noting this type of front-loading rate hikes provides optionality and alluded to a potential 0.50%-0.75% increase in July.

European equities also declined (-15.22% for the second quarter and -21.97% for the six months ended June 30, 2022) as measured by the MSCI Europe IMI. Within the U.K. (-11.88% for the second quarter and -12.91% for the six months ended June 30, 2022, measured by the MSCI United Kingdom IMI), inflation hit a new record in June of 9.1% year-on-year. Similarly, Europe ex-U.K. also declined (-16.32% for the second quarter and -24.72% for the six months ended June 30, 2022, measured by the MSCI Europe ex-U.K. IMI) with intensifying inflation, hawkish interest rate expectations and recessionary fears looming. Growth in Germany and France slowed, and estimates of French, German, and Euro Zone purchasing managers index readings came in weaker than expected in June, further fueling recessionary fears.

Emerging markets declined (-12.10% for the second quarter and -17.94% for the six months ended June 30, 2022 as measured by the MSCI EM IMI) broadly across countries. Chinese equities rallied (+3.28% for the second quarter and -11.46% for the six months ended June 30, 2022, measured by the MSCI China IMI) as COVID lockdowns continued to ease, for the time being, leading to accelerated demand. The prospect of government stimulus to help offset headwinds to growth also bolstered investor sentiment. Nevertheless, the regulatory overhang and heightened geopolitical risks remain in the forefront. Conversely, Latin America returns sharply reversed from the first quarter (-22.42% for the second quarter and -1.99% for the six months ended June 30, 2022, measured by the MSCI EM Latin America IMI) as global inflation takes its toll. Brazil (-25.21% for the second quarter and +0.36% for the six months ended June 30, 2022, measured by the MSCI Brazil IMI) declined amid soaring inflation and the Selic policy rate spiking to 13.25% in June from 2% in early 2021.

Financial markets remained turbulent through the second quarter of 2022 as inflationary pressures, the prospect for more aggressive interest rate hikes and the ongoing war in Ukraine continued to weigh on investor sentiment. Looking to the balance of this year, we expect a number of these macroeconomic and market trends to persist at least for the near future, however we feel the market impacts of these factors are waning and the potential for a deep or prolonged recession is still unlikely.

As we discussed in the prior shareholder report commentary, the previous two years have been unique in many ways. Our assessment of a post-pandemic world has changed based on the implications of Russia’s invasion of Ukraine where the risk of higher prices and lower growth have increased from our original forecasts. We now expect U.S. inflation to peak later this summer and to roll over much more gradually than previously expected. Within Europe, we expect the peak to come later, as compared to the U.S., as energy and commodity prices continue to drive inflation. We also continue to monitor wage growth, which remains a key variable but remains negative in real terms and has not added to inflationary pressure at this point.

We expect growth to continue to slow, settling to levels below our earlier projections. In our view, European growth is most at risk, and will likely be materially lower, approaching zero sequentially as the impacts of the war will limit the European economy’s ability to reach its pre-COVID GDP trajectories this year. Within the U.S., we expect growth to increase +2-3% for the year, but sequential growth will also fall to near-zero. While the probability of a recession will increase, we believe a deep or prolonged recession remains unlikely.

Semiannual Report

June 30, 2022

Global Markets Review and Outlook

The rising rate and strong dollar backdrop can be problematic for emerging markets, but every cycle is unique, and our outlook remains region and country specific. The major Latin America and the Middle East countries are actually well-positioned for the environment in our view. In Asia, India may be more vulnerable given their commodity dependence, and generally high market valuation. We have begun to see some easing of the COVID lockdowns in China that will likely lead to accelerating demand, however the low vaccination rate amongst the older population and potential for a resurgence and its effect on growth remains in the forefront. The regulatory overhang and heightened geopolitical risks continue to weigh on sentiment, though the recent regulatory cycle has peaked. Conversely, we think the government’s focus on stable economic growth will lead to moderate fiscal stimulus and potential for monetary easing, in stark contrast to many other major countries. Valuations in China appear far more attractive.

Corporate earnings growth, especially outside the U.S., is widely expected to decelerate throughout much of 2022, yet we have seen very few negative revisions. Given the persistent inflation and macro-economic uncertainty, we expect that to change with second quarter corporate reports and the related outlook commentary for the balance of the year. While some of that expected deceleration has been reflected in multiple contraction, negative earnings revisions may continue to put further downward pressure on multiples.

We’ve created a framework that combines the growth and inflation influences with corporate profit growth and stock valuations so we can understand portfolio positioning and risks. While our base case is that we avoid a deep recession and inflation ultimately proves manageable, we are broadening out the growth and valuation profiles of our strategies to create more balance in this time of economic uncertainty.

For at least the balance of this year, we will focus our research on companies that can manage input costs and pricing power, protecting their growth and margins. Higher quality companies should be able to demonstrate their leadership, and with the valuation contraction of quality, we think this will be fruitful for us. Markets are likely to focus on visibility of growth, relative changes to growth rates, and lower duration equities.

Longer term, we believe the outlook for equity investing may be shifting as well, with increased risk that the growth, inflation, and interest rate environment may be different than what we have experienced in the recent past. Thus, the backdrop for growth equities and risk assets may continue to be under some pressure.

While the foregoing may seem to present a style headwind, we will continue to focus on innovation and disruption, which has arguably accelerated, and our unique approach as equity investors. We have continued to see a dynamic shifting of corporate winners and losers. We believe the durability or improvements in corporate competitive advantage remain underappreciated. While the precise value of those anticipated advantages will need to be recalibrated slightly, we believe that our continued understanding of companies that have differentiated, durable competitive advantages will remain integral to our growth investment strategy.

We continue to see the ongoing shift towards digitalization across myriad industries, particularly accelerating in the industrial side of the economy. We reflect on what 4G did for the consumer side of the economy, and what 5G could do for industrials, healthcare, and other sectors.

In addition, in the last decade we have seen a unique concentration of winners, both within entire industries as well as individual companies. We think this may be at risk of shifting back into something more balanced, similar to what we have seen in decades prior. We are also interested in industries that fit into this notion of a shifting opportunity set, including those that have not experienced much growth recently but could benefit from the environment we are likely to be in. Examples may include banks and natural resource companies in different parts of the world.

Last, we believe we have the advantage of breadth. Our investment eligibility list has always been inclusive of high-quality, high-return companies with varying growth rates across several industries and countries. We expect to identify similarly diverse growth opportunities in the future.

June 30, 2022

William Blair Funds

	Global Leaders Fund

	The Global Leaders Fund seeks long-term capital appreciation.

	AN OVERVIEW FROM THE PORTFOLIO MANAGERS

Andrew G. Flynn, CFA Kenneth J. McAtamney Hugo Scott-Gall	The William Blair Global Leaders Fund (Class N shares) (the “Fund”) posted a 30.99% decrease, net of fees, for the six months ended June 30, 2022. By comparison, the Fund’s benchmark index, the MSCI All Country World IMI (net) (the “Index”), decreased 20.44%. Underperformance versus the Index was largely due to style headwinds amid strong outperformance of low-valuation stocks. From an attribution perspective, stock selection was weak across most sectors, especially Health Care and Industrials. Within Health Care, Align Technology (“Align”), the maker of Invisalign clear aligners for the orthodontics market, weighed on relative performance. Align is the technology leader in the orthodontics space, with a strong track record of innovation in clear aligners and the digital orthodontics ecosystem such as intraoral scanners. Since Align’s U.S. patent expirations in 2017-2018, competition from traditional orthodontic players has only reinforced the company’s long-standing claim that clear aligners are a highly effective way of treating malocclusion for mild, moderate, and complex cases. As a result, the adoption of clear aligners is accelerating and appears to be nearing an inflection point. The share price came under pressure after the company reported first quarter results below expectations, primarily driven by lockdowns in China, waning consumer confidence driven by increasing inflationary pressures and supply chain disruptions, and the military conflict in Ukraine and resulting fallout across Europe. An overweight allocation and weaker stock selection within Information Technology also hampered performance. Within Information Technology, Infineon Technologies (“Infineon”), a leading semiconductor company based in Germany, hampered relative performance. Infineon is a leader in structural opportunities in automotive and power markets. We believe that this should continue to enable superior growth driven by content gains and supportive regulation. Despite solid quarterly earnings, Infineon’s share price softened alongside semiconductor peers as a part of the broad style rotation early in the period. Management also reiterated that supply constraints continue to limit overall growth, but shortages have started to ease. Partially offsetting these effects was the benefit of underweighting within Communication Services and overweighting within Health Care. Positive stock selection within the specialty retail industry within Consumer Discretionary was primarily driven by Ulta Beauty. We believe that Ulta Beauty is well-positioned to expand share in the structurally attractive beauty category, benefiting from strong customer engagement due to its well-managed loyalty program, a continued shift away from department stores, and an expanding portfolio of products, including a higher mix of more profitable prestige brands and skincare products. The company has strong digital capabilities, coupled with an attractive retail experience that continues to drive in-store traffic, making Ulta Beauty’s business more defensible against disruption from online competitors. The share price strengthened on strong fourth-quarter results as top-line growth was primarily driven by better-than-expected holiday sales and a rational promotional environment. From a regional perspective, overweighting within Developed Asia ex-Japan was also beneficial, especially given strength from AIA. AIA is the leading life insurer across Asia ex-Japan. We believe it should continue to benefit from strong secular growth as a result of rising affluence, low insurance penetration, and favorable demographics given its strong brand and distribution. AIA is also a key beneficiary of China’s liberalization of the life insurance industry. Its competitive advantages include business process (strong underwriting), brand distinction (well-known, established in Shanghai in 1919), and culture. Eased border restrictions with Hong Kong and a broader reopening within China, increasing U.S. yields, and rising awareness of the value of insurance protection post-pandemic position AIA as a strong recovery opportunity. Please refer to the Global Markets Review and Outlook relating to the Fund beginning on page 32.


34	Semiannual Report	June 30, 2022

Global Leaders Fund

Performance Highlights (Unaudited)

Average Annual Total Returns through 6/30/2022

	Year to Date			1 Year			3 Year			5 Year			10 Year			Since Inception(a)
Class N		(30.99	)%		(27.40	)%		4.87	%		7.87	%		8.79	%		—	%
Class I		(30.86	)		(27.22	)		5.12			8.15			9.09			—
Class R6		(30.83	)		(27.15	)		5.21			8.23			—			8.72
MSCI ACW IMI (net)		(20.44	)		(16.52	)		5.98			6.70			8.71			8.02


(a)	Since inception is for the period from December 19, 2012 (Commencement of Operations) to June 30, 2022.

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.

Sector Diversification (Unaudited)

The sector diversification shown is based on the total long-term securities.

June 30, 2022

William Blair Funds

Global Leaders Fund

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)



	Issuer	Shares		Value

	Common Stocks

	Western Hemisphere—52.9%
	Canada—1.3%
*	Lululemon Athletica, Inc. (Textiles, apparel & luxury goods)		4,655	$	1,269
	United States—51.6%
*	Adobe, Inc. (Software)		2,977		1,090
*	Align Technology, Inc. (Health care equipment & supplies)		2,080		492
*	Alphabet, Inc. Class “A” (Interactive Media & Services)		1,485		3,236
*	Amazon.com, Inc. (Internet & direct marketing retail)		22,947		2,437
*	Autodesk, Inc. (Software)		6,634		1,141
	BlackRock, Inc. (Capital markets)		2,147		1,308
*	Charles River Laboratories International, Inc. (Life sciences tools & services)		6,287		1,345
*	CoStar Group, Inc. (Professional services)		18,729		1,131
	Ecolab, Inc. (Chemicals)		5,115		786
*	Edwards Lifesciences Corporation (Health care equipment & supplies)		14,272		1,357
	Fidelity National Information Services, Inc. (IT services)		7,078		649
*	IDEXX Laboratories, Inc. (Health care equipment & supplies)		2,960		1,038
	Intercontinental Exchange, Inc. (Capital markets)		13,852		1,303
*	Intuitive Surgical, Inc. (Health care equipment & supplies)		4,609		925
	Mastercard, Inc. Class “A” (IT services)		9,661		3,048
*	Meta Platforms, Inc. Class “A” (Interactive Media & Services)		9,369		1,511
	Microsoft Corporation (Software)		13,696		3,518
	NextEra Energy, Inc. (Electric utilities)		18,002		1,394
	NIKE, Inc. Class “B” (Textiles, apparel & luxury goods)		13,268		1,356
*	PayPal Holdings, Inc. (IT services)		9,711		678
	Prologis, Inc. (Equity REIT)		5,941		699
	Roper Technologies, Inc. (Industrial conglomerates)		3,184		1,257
*	salesforce.com, Inc. (Software)		13,048		2,153
*	SVB Financial Group (Banks)		2,095		827
*	Synopsys, Inc. (Software)		5,697		1,730
	The Estee Lauder Cos., Inc. Class “A” (Personal products)		5,543		1,412
	Thermo Fisher Scientific, Inc. (Life sciences tools & services)		3,615		1,964
*	Ulta Beauty, Inc. (Specialty retail)		5,195		2,003
	Union Pacific Corporation (Road & rail)		9,099		1,941
	UnitedHealth Group, Inc. (Health care providers & services)		4,529		2,326
*	Veeva Systems, Inc. Class “A” (Health care technology)		2,813		557
*	Workday, Inc. Class “A” (Software)		8,433		1,177
	Zoetis, Inc. (Pharmaceuticals)		8,265		1,421
					49,210



	Issuer	Shares		Value

	Common Stocks—(continued)

	Europe—23.9%
	Denmark—3.6%
	DSV A/S (Air freight & logistics)		9,298	$	1,298
	Novo Nordisk A/S Class “B” (Pharmaceuticals)		19,755		2,191
					3,489
	France—4.6%
	Airbus SE (Aerospace & defense)		28,013		2,714
	LVMH Moet Hennessy Louis Vuitton SE (Textiles, apparel & luxury goods)		2,780		1,695
					4,409
	Germany—3.9%
	Infineon Technologies AG (Semiconductors & semiconductor equipment)		60,934		1,475
	MTU Aero Engines AG (Aerospace & defense)		9,719		1,769
	Rational AG (Machinery)		828		481
					3,725
	Ireland—2.3%
*	Aptiv plc (Auto components)†		14,625		1,303
*	Ryanair Holdings plc—ADR (Airlines)		12,936		870
					2,173
	Netherlands—1.5%
*	Adyen N.V. (IT services)		979		1,424
	Sweden—5.3%
	Atlas Copco AB Class “A” (Machinery)		150,335		1,404
	Evolution AB (Hotels, restaurants & leisure)		11,302		1,028
	Hexagon AB Class “B” (Electronic equipment, instruments & components)		182,833		1,899
	Indutrade AB (Machinery)		38,908		709
					5,040
	Switzerland—2.7%
	Lonza Group AG (Life sciences tools & services)		2,605		1,389
	Partners Group Holding AG (Capital markets)		1,322		1,191
					2,580

	Asia—6.1%
	Australia—3.8%
	Aristocrat Leisure, Ltd. (Hotels, restaurants & leisure)		62,789		1,490
*	Atlassian Corporation plc Class “A” (Software)†		5,688		1,066
	CSL, Ltd. (Biotechnology)		5,957		1,106
					3,662
	Hong Kong—1.8%
	AIA Group, Ltd. (Insurance)		157,200		1,704
	New Zealand—0.5%
	Fisher & Paykel Healthcare Corp., Ltd. (Health care equipment & supplies)		41,225		515

See accompanying Notes to Financial Statements.

Semiannual Report

June 30, 2022

Global Leaders Fund

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)



	Issuer	Shares		Value

	Common Stocks—(continued)

	Emerging Asia—5.5%
	India—3.4%
	HDFC Bank, Ltd.—ADR (Banks)		26,158	$	1,438
*	Reliance Industries, Ltd. (Oil, gas & consumable fuels)		53,534		1,755
					3,193
	Taiwan—2.1%
	Taiwan Semiconductor Manufacturing Co., Ltd.—ADR (Semiconductors & semiconductor equipment)		24,974		2,041

	United Kingdom—5.2%
	Compass Group plc (Hotels, restaurants & leisure)		120,275		2,460
	Experian plc (Professional services)		38,552		1,129
	Halma plc (Electronic equipment, instruments & components)		14,530		355
	Rentokil Initial plc (Commercial services & supplies)		179,934		1,040
					4,984

	Japan—3.0%
	Daikin Industries, Ltd. (Building products)		7,400		1,187
	Keyence Corporation (Electronic equipment, instruments & components)		3,200		1,094
	Nihon M&A Center Holdings, Inc. (Professional services)		53,900		573
					2,854

	Emerging Latin America—1.5%
	Argentina—1.5%
*	Globant S.A. (IT services)†		5,343		930
*	MercadoLibre, Inc. (Internet & direct marketing retail)		742		472
					1,402
	Total Common Stocks—98.1% (cost $70,474)				93,674


Issuer	Principal Amount		Value

Repurchase Agreement
Fixed Income Clearing Corporation, 0.240% dated 6/30/22, due 7/1/22, repurchase price $630, collateralized by U.S. Treasury Note, 1.625%, due 05/15/31, valued at $643		$630	$	630
Total Repurchase Agreement—0.7% (cost $630)				630
Total Investments—98.8% (cost $71,104)				94,304
Cash and other assets, less liabilities—1.2%				1,129
Net assets—100.0%			$	95,433

ADR = American Depository Receipt

REIT = Real Estate Investment Trust

* = Non-income producing security

† = U.S. listed foreign security

At June 30, 2022, the Fund’s Portfolio of Investments includes the following industry categories (as a percentage of long-term investments):

Information Technology	28.6	%
Health Care	17.7	%
Industrials	17.3	%
Consumer Discretionary	16.6	%
Financials	8.3	%
Communication Services	5.1	%
Energy	1.9	%
Consumer Staples	1.5	%
Utilities	1.5	%
Materials	0.8	%
Real Estate	0.7	%
Total	100.0	%

At June 30, 2022, the Fund’s Portfolio of Investments includes the following currency categories (as a percentage of long-term investments):

U.S. Dollar	62.6	%
Euro	10.2	%
Swedish Krona	5.4	%
British Pound Sterling	5.3	%
Danish Krone	3.7	%
Japanese Yen	3.0	%
Australian Dollar	2.8	%
Swiss Franc	2.8	%
Indian Rupee	1.9	%
Hong Kong Dollar	1.8	%
All Other Currencies	0.5	%
Total	100.0	%

See accompanying Notes to Financial Statements.

June 30, 2022

William Blair Funds

	International Leaders Fund

	The International Leaders Fund seeks long-term capital appreciation.

	AN OVERVIEW FROM THE PORTFOLIO MANAGERS

Simon Fennell Kenneth J. McAtamney Alaina Anderson, CFA	The William Blair International Leaders Fund (Class N shares) (the “Fund”) posted a 31.18% decrease, net of fees, for the six months ended June 30, 2022. By comparison, the Fund’s benchmark index, the MSCI All Country World ex-U.S. IMI (net) (the “Index”), decreased 19.08%. Underperformance versus the Index was primarily driven by negative stock selection across most sectors. The Industrials and Health Care sectors were the largest sources of relative returns. Within the Industrials sector, Kingspan and Ashtead were the largest sources of underperformance. Kingspan is a leading building materials company that has developed a differentiated technology within insulated panels. We believe it should continue to gain market share globally given the strong value proposition it offers customers. The primary advantage of its insulation products is energy efficiency, improved durability, reduced maintenance costs, and faster construction times. We expect that these “green” products also stand to benefit from existing and future legislation from nations looking to reduce their carbon footprint. While recent results were strong, with revenue up 48% year-over-year and ahead of consensus, the company signaled a slowdown in orders amid economic weakness. Kingspan was one of the top-performing stocks in our portfolio last year, and we trimmed back the position prior to the deterioration in outlook. With a P/E multiple of 16 times, the company is trading near decade-low multiples. Ashtead, which operates under the Sunbelt brand, rents a broad range of construction and industrial equipment from general tools to specialty equipment. The rental business is simple, with the rental provider offering customers homogenous products. While simplistic, Ashtead has the key benefit of scale in a largely fragmented market. The benefits of scale are significant. Ashtead is able to buy equipment cheaper than the competition, it has a large and well-invested fleet to meet customer needs, and it has a wide-reaching and growing distribution network, ensuring that equipment is closer to the customer. These advantages have driven growth in cash flow, in turn driving further investment that has resulted in share gains and greater scale. The company’s recent results were above consensus, with rental revenue up 22%. Despite these results, the stock is down year-to-date as valuations have compressed. Within the Health Care sector, Lonza was the largest detractor to performance. Lonza is a leader in custom manufacturing of biopharmaceuticals and specialty ingredients. It is a premier contract development and manufacturing company with technical expertise in biologics, high-potency active pharma ingredients, and cell and gene therapies. As a preferred global partner to the biopharma industry, Lonza has enduring relationships that span the lifecycle of its partners’ portfolios of pharmaceuticals. It has a pipeline of more than 800 drugs and in our view is well positioned to sustainably grow faster than the industry. Demand remains strong. The level of cash on hand at biotech companies is expected to be very robust for the next two to three years, and the company’s pipeline is tilted toward later stages of development. We trimmed the position in the second quarter at higher levels, and despite strong corporate performance, the Stock declined as valuations have compressed. Straumann, the global leader in esthetic dentistry, also detracted from performance. The categories that the company participates in–implants, clear aligners, and digital dentistry–are growing well above global dental market rates. Straumann is more than just a products company. As a total solution provider, it offers training, support, and a wide range of services to the dental industry all over the world. In addition, the company is investing in technology and expanding capacity to make clear aligners a second long-term growth pillar. Straumann was the best performing stock in our portfolio last year, and we trimmed the position earlier this year. Recent results have been strong, with revenue up 27% in the second quarter. Despite those results, the stock declined as valuations have compressed. Partially offsetting these effects was an underweight to the Consumer Discretionary, an underweight to Emerging Middle East and Africa, and an overweight to U.K. Please refer to the Global Markets Review and Outlook relating to the Fund beginning on page 32.


38	Semiannual Report	June 30, 2022

International Leaders Fund

Performance Highlights (Unaudited)

Average Annual Total Returns through 6/30/2022

	Year to Date			1 Year			3 Year			5 Year			Since Inception
Class N(a)		(31.18	)%		(28.77	)%		1.42	%		4.32	%		6.73	%
Class I(a)		(31.09	)		(28.59	)		1.67			4.58			7.00
MSCI ACW ex-U.S. IMI (net)(a)		(19.08	)		(19.86	)		1.55			2.50			4.60
Class R6(b)		(31.09	)		(28.59	)		1.71			4.64			6.99
MSCI ACW ex-U.S. IMI (net)(b)		(19.08	)		(19.86	)		1.55			2.50			4.30


(a)	Since inception is for the period from August 16, 2012 (Commencement of Operations) to June 30, 2022.
(b)	Since inception is for the period from November 2, 2012 (Commencement of Operations) to June 30, 2022.

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.

Sector Diversification (Unaudited)

The sector diversification shown is based on the total long-term securities.

June 30, 2022

William Blair Funds

International Leaders Fund

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)



	Issuer	Shares		Value

	Common Stocks

	Europe—49.9%
	Belgium—1.4%
	KBC Group N.V. (Banks)		242,949	$	13,631
	Denmark—7.3%
	Chr Hansen Holding A/S (Chemicals)		188,637		13,730
	Coloplast A/S Class “B” (Health care equipment & supplies)		79,093		9,008
	DSV A/S (Air freight & logistics)		88,698		12,387
	Novo Nordisk A/S Class “B” (Pharmaceuticals)		199,382		22,114
	Orsted A/S (Electric utilities)		134,574		14,067
					71,306
	Finland—1.4%
	Neste Oyj (Oil, gas & consumable fuels)		309,929		13,719
	France—14.7%
	Airbus SE (Aerospace & defense)		343,671		33,296
	Dassault Systemes SE (Software)		196,643		7,236
	L’Oreal S.A. (Personal products)		37,202		12,838
	LVMH Moet Hennessy Louis Vuitton SE (Textiles, apparel & luxury goods)		40,853		24,904
	Safran S.A. (Aerospace & defense)		259,715		25,641
	Sartorius Stedim Biotech (Life sciences tools & services)		36,962		11,593
	Teleperformance (Professional services)		27,970		8,597
	Vinci S.A. (Construction & engineering)		222,348		19,796
					143,901
	Germany—1.8%
	Infineon Technologies AG (Semiconductors & semiconductor equipment)		529,519		12,813
	Rational AG (Machinery)		8,773		5,098
					17,911
	Ireland—4.8%
*	ICON plc (Life sciences tools & services)†		107,554		23,307
	Kingspan Group plc (Building products)		174,065		10,470
*	Ryanair Holdings plc—ADR (Airlines)		192,919		12,974
					46,751
	Luxembourg—1.2%
	Tenaris S.A. (Energy equipment & services)		918,034		11,804
	Netherlands—3.4%
*	Adyen N.V. (IT services)		10,464		15,221
	ASML Holding N.V. (Semiconductors & semiconductor equipment)		37,699		18,009
					33,230
	Norway—0.5%
	TOMRA Systems ASA (Commercial services & supplies)		284,549		5,278
	Spain—2.7%
*	Amadeus IT Group S.A. (IT services)		471,889		26,289



	Issuer	Shares		Value

	Common Stocks—(continued)

	Europe—(continued)
	Sweden—4.5%
	Atlas Copco AB Class “A” (Machinery)		1,180,537	$	11,029
	EQT AB (Capital markets)		243,294		4,980
	Evolution AB (Hotels, restaurants & leisure)		79,684		7,245
	Hexagon AB Class “B” (Electronic equipment, instruments & components)		1,590,645		16,521
	Indutrade AB (Machinery)		247,876		4,520
					44,295
	Switzerland—6.2%
	Lonza Group AG (Life sciences tools & services)		40,341		21,509
	Partners Group Holding AG (Capital markets)		12,694		11,438
	Sika AG (Chemicals)		47,079		10,849
	Straumann Holding AG (Health care equipment & supplies)		141,134		16,950
					60,746

	United Kingdom—18.9%
	Ashtead Group plc (Trading companies & distributors)		254,078		10,636
	AstraZeneca plc (Pharmaceuticals)		204,917		26,940
	Bunzl plc (Trading companies & distributors)		563,822		18,662
	Compass Group plc (Hotels, restaurants & leisure)		1,281,901		26,216
	Diageo plc (Beverages)		435,709		18,725
	Experian plc (Professional services)		463,419		13,573
	Halma plc (Electronic equipment, instruments & components)		212,450		5,196
	Linde plc (Chemicals)†		55,189		15,868
	London Stock Exchange Group plc (Capital markets)		193,164		17,946
	Rentokil Initial plc (Commercial services & supplies)		2,694,314		15,566
	Segro plc (Equity REIT)		775,903		9,226
	Spirax-Sarco Engineering plc (Machinery)		57,199		6,878
					185,432

	Emerging Asia—8.4%
	India—6.4%
	Housing Development Finance Corporation, Ltd. (Thrifts & mortgage finance)		534,819		14,588
	Infosys, Ltd. (IT services)		785,793		14,522
*	Reliance Industries, Ltd. (Oil, gas & consumable fuels)		1,034,874		33,927
					63,037
	Taiwan—2.0%
	Taiwan Semiconductor Manufacturing Co., Ltd. (Semiconductors & semiconductor equipment)		1,203,000		19,259

See accompanying Notes to Financial Statements.

Semiannual Report

June 30, 2022

International Leaders Fund

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)



	Issuer	Shares		Value

	Common Stocks—(continued)

	Canada—8.0%
	Canadian National Railway Co. (Road & rail)		249,485	$	28,063
	Dollarama, Inc. (Multiline retail)		157,455		9,067
	Intact Financial Corporation (Insurance)		53,303		7,518
*	Lululemon Athletica, Inc. (Textiles, apparel & luxury goods)		50,473		13,760
	The Toronto-Dominion Bank (Banks)		298,032		19,544
					77,952

	Asia—5.7%
	Australia—3.7%
	Aristocrat Leisure, Ltd. (Hotels, restaurants & leisure)		1,136,541		26,971
*	Atlassian Corporation plc Class “A” (Software)†		50,219		9,411
					36,382
	Hong Kong—1.5%
	AIA Group, Ltd. (Insurance)		1,324,800		14,359
	New Zealand—0.5%
	Fisher & Paykel Healthcare Corp., Ltd. (Health care equipment & supplies)		433,313		5,407

	Japan—4.4%
	Asahi Intecc Co., Ltd. (Health care equipment & supplies)		257,100		3,881
	Daikin Industries, Ltd. (Building products)		69,500		11,141
	Hoya Corporation (Health care equipment & supplies)		120,300		10,272
	Keyence Corporation (Electronic equipment, instruments & components)		38,900		13,297
	Nihon M&A Center Holdings, Inc. (Professional services)		426,900		4,540
					43,131

	Emerging Latin America—1.8%
	Argentina—1.2%
*	Globant S.A. (IT services)†		28,305		4,925
*	MercadoLibre, Inc. (Internet & direct marketing retail)		10,112		6,440
					11,365
	Brazil—0.6%
	B3 S.A. - Brasil Bolsa Balcao (Capital markets)		2,942,600		6,163
	Total Common Stocks—97.1% (cost $955,122)				951,348


Issuer	Principal Amount		Value

Repurchase Agreement
Fixed Income Clearing Corporation, 0.240% dated 6/30/22, due 7/1/22, repurchase price $22,523, collateralized by U.S. Treasury Note, 1.250%, due 06/30/28, valued at $22,973		$22,523	$	22,523
Total Repurchase Agreement—2.3% (cost $22,523)				22,523
Total Investments—99.4% (cost $977,645)				973,871
Cash and other assets, less liabilities—0.6%				6,220
Net assets—100.0%			$	980,091

ADR = American Depository Receipt

REIT = Real Estate Investment Trust

* = Non-income producing security

† = U.S. listed foreign security

At June 30, 2022, the Fund’s Portfolio of Investments includes the following industry categories (as a percentage of long-term investments):

Industrials	27.1	%
Information Technology	17.1	%
Health Care	15.9	%
Consumer Discretionary	12.0	%
Financials	11.6	%
Energy	6.2	%
Materials	4.3	%
Consumer Staples	3.3	%
Utilities	1.5	%
Real Estate	1.0	%
Total	100.0	%

At June 30, 2022, the Fund’s Portfolio of Investments includes the following currency categories (as a percentage of long-term investments):

Euro	28.5	%
British Pound Sterling	17.8	%
U.S. Dollar	9.1	%
Danish Krone	7.5	%
Canadian Dollar	6.8	%
Indian Rupee	6.6	%
Swiss Franc	6.4	%
Swedish Krona	4.7	%
Japanese Yen	4.5	%
Australian Dollar	2.8	%
New Taiwan Dollar	2.0	%
Hong Kong Dollar	1.5	%
All Other Currencies	1.8	%
Total	100.0	%

See accompanying Notes to Financial Statements.

June 30, 2022

William Blair Funds

	International Growth Fund

	The International Growth Fund seeks long-term capital appreciation.

	AN OVERVIEW FROM THE PORTFOLIO MANAGERS

Simon Fennell Kenneth J. McAtamney Andrew Siepker, CFA	The William Blair International Growth Fund (Class N shares) (the “Fund”) posted a 30.69% decrease, net of fees, for the six months June 30, 2022. By comparison, the Fund’s benchmark index, the MSCI All Country World ex-U.S. IMI (net) (the “Index”), decreased 19.08%. Underperformance versus the Index was primarily driven by negative stock selection across most sectors. The Industrials and Health Care sectors were the largest sources of negative relative returns. Within the Industrials sector, Ashtead and Atlas Copco detracted from relative results. Ashtead, which operates under the Sunbelt brand, rents a broad range of construction and industrial equipment from general tools to specialty equipment. The rental business is simple, with the rental provider offering customers homogenous products. While simplistic, Ashtead has the key benefit of scale in a largely fragmented market. The benefits of scale are significant. Ashtead is able to buy equipment cheaper than the competition, it has a large and well-invested fleet to meet customer needs, and it has a wide-reaching and growing distribution network, ensuring that equipment is closer to the customer. These advantages have driven growth in cash flow, in turn driving further investment that has resulted in share gains and greater scale. The company’s recent results were above consensus with rental revenue up 22%. Despite these results, the stock is down year-to-date as valuations have compressed. Atlas Copco is a well-managed, consistently profitable provider of compressors, vacuum solutions, and air treatment systems within the Industrials sector. The company reported solid quarterly results even though supply chain constraints impacted growth. New orders were up 26%, but operating profit margins fell short of expectations as supply chain constraints and COVID-related labor challenges weighed on profits. We believe the company continues to offer a sustainable growth profile with an envied business model and strong competitive advantages. The near term will likely be choppy, but backlogs are swelling as deliveries significantly lag orders. As a result, near-term growth may be held back but we believe that the length of the upcycle will likely be extended. Within the Health Care sector, Straumann was the largest detractor to performance. Straumann is the global leader in esthetic dentistry. The categories that the company participates in–implants, clear aligners, and digital dentistry–are growing well above global dental market rates. Straumann is more than just a products company. As a total solution provider, it offers training, support, and a wide range of services to the dental industry all over the world. In addition, the company is investing in technology and expanding capacity to make clear aligners a second long-term growth pillar. Straumann was the best-performing stock in our portfolio last year, and we trimmed the position in the second quarter. Recent results have been strong, with revenue up 27% in the quarter. Despite those results, the stock declined as valuations have compressed. Lonza was an additional source of underperformance. Lonza is a leader in custom manufacturing of biopharmaceuticals and specialty ingredients. It is a premier contract development and manufacturing company with technical expertise in biologics, high-potency active pharma ingredients, and cell and gene therapies. As a preferred global partner to the biopharma industry, Lonza has enduring relationships that span the lifecycle of its partners’ portfolios of pharmaceuticals. It has a pipeline of more than 800 drugs and in our view is well

Semiannual Report

June 30, 2022

International Growth Fund

positioned to sustainably grow faster than the industry. Demand remains strong. The level of cash on hand at biotech companies is expected to be very robust for the next two to three years, and the company’s pipeline is tilted toward later stages of development. We trimmed the position earlier in the quarter at higher levels, and despite strong corporate performance, the stock declined as valuations have compressed.

Partially offsetting these effects was an overweight to Health Care, an underweight to Emerging Middle East and Africa, and positive stock selection within the Energy sector. Within Energy, Reliance Industries added to relative results. Reliance is an Indian conglomerate with diverse businesses in energy, telecom, and retail. It benefited from the COVID reopening in India, leading to positive operating leverage across its businesses and record earnings. Reliance’s ongoing transformation from an asset- and capex-heavy cyclical energy business to more diversified, end-consumer business with a large and expanding total addressable market, is underappreciated in our view. We believe that the market underestimates the monetization potential at Jio, its telecom and digital services business with strong ecosystem benefits as a dominant provider of connectivity, content, and commerce.

Please refer to the Global Markets Review and Outlook relating to the Fund beginning on page 32.

June 30, 2022

William Blair Funds

International Growth Fund

Performance Highlights (Unaudited)

Average Annual Total Returns through 6/30/2022

	Year to Date			1 Year			3 Year			5 Year			10 Year			Since Inception(a)
Class N		(30.69	)%		(30.44	)%		2.69	%		3.64	%		5.73	%		—	%
Class I		(30.58	)		(30.22	)		3.00			3.97			6.05			—
Class R6		(30.58	)		(30.18	)		3.07			—			—			3.59
MSCI ACW ex-U.S. IMI (net)		(19.08	)		(19.86	)		1.55			2.50			5.01			1.47


(a)	Since inception is for the period from May 2, 2019 (Commencement of Operations) to June 30, 2022.

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.

Sector Diversification (Unaudited)

The sector diversification shown is based on the total long-term securities.

Semiannual Report

June 30, 2022

International Growth Fund

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)



	Issuer	Shares		Value

	Common Stocks

	Europe, Mid-East—43.4%
	Belgium—1.3%
	KBC Group N.V. (Banks)		299,153	$	16,785
	Warehouses De Pauw CVA (Equity REIT)		91,580		2,879
					19,664
	Denmark—5.3%
	Chr Hansen Holding A/S (Chemicals)		68,035		4,952
	Coloplast A/S Class “B” (Health care equipment & supplies)		52,069		5,931
	DSV A/S (Air freight & logistics)		115,834		16,177
*	Genmab A/S (Biotechnology)		32,880		10,641
	Novo Nordisk A/S Class “B” (Pharmaceuticals)		251,887		27,937
	Orsted A/S (Electric utilities)		75,178		7,858
	Royal Unibrew A/S (Beverages)		52,027		4,606
					78,102
	Finland—1.0%
	Neste Oyj (Oil, gas & consumable fuels)		314,003		13,899
	France—11.4%
	Airbus SE (Aerospace & defense)		262,497		25,432
	Capgemini SE (IT services)		48,127		8,244
	Dassault Systemes SE (Software)		343,771		12,650
	Hermes International (Textiles, apparel & luxury goods)		7,186		8,035
	Kering S.A. (Textiles, apparel & luxury goods)		11,412		5,861
	L’Oreal S.A. (Personal products)		48,093		16,596
	LVMH Moet Hennessy Louis Vuitton SE (Textiles, apparel & luxury goods)		28,228		17,208
	Safran S.A. (Aerospace & defense)		200,065		19,752
	Sartorius Stedim Biotech (Life sciences tools & services)		30,260		9,491
	Teleperformance (Professional services)		39,950		12,279
	Thales S.A. (Aerospace & defense)		111,724		13,704
	Vinci S.A. (Construction & engineering)		208,263		18,543
					167,795
	Germany—3.7%
	Carl Zeiss Meditec AG (Health care equipment & supplies)		36,547		4,362
	CompuGroup Medical SE & Co. KgaA (Health care technology)		47,871		2,039
*	CTS Eventim AG & Co. KGaA (Entertainment)		104,758		5,489
	Infineon Technologies AG (Semiconductors & semiconductor equipment)		484,836		11,732
	MTU Aero Engines AG (Aerospace & defense)		130,819		23,813
	Nemetschek SE (Software)		44,050		2,666
	Puma SE (Textiles, apparel & luxury goods)		64,019		4,216
					54,317



	Issuer	Shares		Value

	Common Stocks—(continued)

	Europe, Mid-East—(continued)
	Ireland—2.7%
*	ICON plc (Life sciences tools & services)†		108,374	$	23,485
	Kingspan Group plc (Building products)		157,783		9,491
*	Ryanair Holdings plc—ADR (Airlines)		107,455		7,226
					40,202
	Israel—0.7%
*	Inmode, Ltd. (Health care equipment & supplies)†		91,673		2,054
	Mizrahi Tefahot Bank, Ltd. (Banks)		98,649		3,262
*	Nice, Ltd.—ADR (Software)		23,485		4,520
					9,836
	Italy—1.0%
	Amplifon SpA (Health care providers & services)		112,002		3,433
	Brunello Cucinelli SpA (Textiles, apparel & luxury goods)		65,849		2,966
	FinecoBank Banca Fineco SpA (Banks)		430,505		5,152
	Moncler SpA (Textiles, apparel & luxury goods)		80,311		3,445
					14,996
	Luxembourg—1.3%
	Eurofins Scientific SE (Life sciences tools & services)		123,607		9,725
	Tenaris S.A. (Energy equipment & services)		706,680		9,087
					18,812
	Netherlands—3.2%
*	Adyen N.V. (IT services)		9,158		13,321
	ASML Holding N.V. (Semiconductors & semiconductor equipment)		43,779		20,913
	BE Semiconductor Industries N.V. (Semiconductors & semiconductor equipment)		39,939		1,920
	Euronext N.V. (Capital markets)		64,147		5,237
	IMCD N.V. (Trading companies & distributors)		35,064		4,812
					46,203
	Norway—0.2%
*	AutoStore Holdings, Ltd. (Machinery)		664,541		944
	Gjensidige Forsikring ASA (Insurance)		110,733		2,243
					3,187
	Spain—2.1%
*	Amadeus IT Group S.A. (IT services)		414,989		23,119
	EDP Renovaveis S.A. (Independent power & renewable electricity producers)		317,211		7,486
					30,605

See accompanying Notes to Financial Statements.

June 30, 2022

William Blair Funds

International Growth Fund

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)



	Issuer	Shares		Value

	Common Stocks—(continued)

	Europe, Mid-East—(continued)
	Sweden—3.8%
	Atlas Copco AB Class “A” (Machinery)		1,182,554	$	11,048
	Beijer Ref AB (Trading companies & distributors)		234,680		3,209
	EQT AB (Capital markets)		224,558		4,597
	Evolution AB (Hotels, restaurants & leisure)		75,329		6,849
	Hemnet Group AB (Interactive Media & Services)		154,767		1,902
	Hexagon AB Class “B” (Electronic equipment, instruments & components)		1,048,729		10,892
	Indutrade AB (Machinery)		224,325		4,091
	Investment AB Latour Class “B” (Industrial conglomerates)		149,431		2,955
	Lifco AB Class “B” (Industrial conglomerates)		257,425		4,133
	Sweco AB Class “B” (Construction & engineering)		196,431		2,041
	Thule Group AB (Leisure products)		87,471		2,149
	Vitrolife AB (Biotechnology)		76,180		1,752
					55,618
	Switzerland—5.7%
	Bachem Holding AG Class “B” (Life sciences tools & services)		25,425		1,767
	Belimo Holding AG (Building products)		8,457		2,977
	Galenica AG (Health care providers & services)		55,162		4,235
	Lonza Group AG (Life sciences tools & services)		40,175		21,420
	Partners Group Holding AG (Capital markets)		16,398		14,776
*	Siegfried Holding AG (Life sciences tools & services)		5,381		3,438
*	SIG Group AG (Containers & packaging)		305,681		6,731
	Sika AG (Chemicals)		53,713		12,378
	Straumann Holding AG (Health care equipment & supplies)		86,990		10,447
*	Tecan Group AG (Life sciences tools & services)		12,532		3,639
*	VAT Group AG (Machinery)		10,564		2,519
					84,327

	United Kingdom—15.7%
	3i Group plc (Capital markets)		423,660		5,717
	Ashtead Group plc (Trading companies & distributors)		256,276		10,728
	AstraZeneca plc (Pharmaceuticals)		207,973		27,342
	AVEVA Group plc (Software)		67,582		1,852
	Beazley plc (Insurance)		462,832		2,811
	Big Yellow Group plc (Equity REIT)		227,651		3,636
	Bunzl plc (Trading companies & distributors)		209,547		6,936
	Compass Group plc (Hotels, restaurants & leisure)		1,295,633		26,497



	Issuer	Shares		Value

	Common Stocks—(continued)

	United Kingdom—(continued)
	Croda International plc (Chemicals)		159,417	$	12,559
	CVS Group plc (Health care providers & services)		129,741		2,615
	Diageo plc (Beverages)		283,828		12,198
	Diploma plc (Trading companies & distributors)		113,715		3,084
	Experian plc (Professional services)		425,779		12,470
	Greggs plc (Hotels, restaurants & leisure)		144,370		3,177
	Halma plc (Electronic equipment, instruments & components)		297,845		7,284
	Intermediate Capital Group plc (Capital markets)		327,840		5,224
	Intertek Group plc (Professional services)		98,615		5,049
	Linde plc (Chemicals)†		80,213		23,064
	London Stock Exchange Group plc (Capital markets)		247,830		23,025
	Renishaw plc (Electronic equipment, instruments & components)		48,590		2,110
	Rentokil Initial plc (Commercial services & supplies)		2,012,616		11,628
	Rotork plc (Machinery)		1,622,380		4,752
	Segro plc (Equity REIT)		695,200		8,266
	Softcat plc (IT services)		165,867		2,659
	Spirax-Sarco Engineering plc (Machinery)		53,564		6,441
					231,124

	Emerging Asia—13.9%
	China—2.5%
	Chacha Food Co., Ltd. Class “A” (Food products)		370,342		3,150
	Foshan Haitian Flavouring & Food Co., Ltd. Class “A” (Food products)		374,591		5,056
	Li Ning Co., Ltd. (Textiles, apparel & luxury goods)		1,723,500		15,968
	Proya Cosmetics Co., Ltd. Class “A” (Personal products)		196,678		4,853
	Shenzhen Inovance Technology Co., Ltd. Class “A” (Machinery)		602,592		5,929
	Silergy Corporation (Semiconductors & semiconductor equipment)		28,000		2,256
					37,212
	India—6.8%
	Apollo Hospitals Enterprise, Ltd. (Health care providers & services)		55,223		2,566
	Crompton Greaves Consumer Electricals, Ltd. (Household durables)		681,672		2,943
	Havells India, Ltd. (Electrical equipment)		261,449		3,609
	HDFC Bank, Ltd. (Banks)		1,010,739		17,201
	Info Edge India, Ltd. (Interactive Media & Services)		56,112		2,693
	Infosys, Ltd. (IT services)		985,725		18,217
*	InterGlobe Aviation, Ltd. (Airlines)		250,826		5,112
	Petronet LNG, Ltd. (Oil, gas & consumable fuels)		1,303,137		3,549
	Pidilite Industries, Ltd. (Chemicals)		126,964		3,357

See accompanying Notes to Financial Statements.

Semiannual Report

June 30, 2022

International Growth Fund

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)



	Issuer	Shares		Value

	Common Stocks—(continued)

	Emerging Asia—(continued)
	India—(continued)
	Reliance Industries, Ltd. (Oil, gas & consumable fuels)		1,066,444	$	34,962
	UPL, Ltd. (Chemicals)		365,141		2,930
	Voltas, Ltd. (Construction & engineering)		282,087		3,466
					100,605
	Indonesia—1.7%
	Bank Central Asia Tbk PT (Banks)		51,363,400		24,996
	South Korea—0.4%
	Samsung SDI Co., Ltd. (Electronic equipment, instruments & components)		13,818		5,662
	Taiwan—2.5%
	Airtac International Group (Machinery)		116,713		3,890
	Globalwafers Co., Ltd. (Semiconductors & semiconductor equipment)		125,000		1,904
	MediaTek, Inc. (Semiconductors & semiconductor equipment)		658,000		14,407
	Taiwan Semiconductor Manufacturing Co., Ltd.—ADR (Semiconductors & semiconductor equipment)		194,048		15,863
					36,064

	Canada—7.7%
	Canadian National Railway Co. (Road & rail)		233,119		26,222
	Canadian Pacific Railway, Ltd. (Road & rail)		258,682		18,066
	CCL Industries, Inc. Class “B” (Containers & packaging)		78,762		3,723
	Dollarama, Inc. (Multiline retail)		146,044		8,410
	Intact Financial Corporation (Insurance)		95,969		13,537
*	Kinaxis, Inc. (Software)		37,742		4,074
*	Lululemon Athletica, Inc. (Textiles, apparel & luxury goods)		44,427		12,111
	Parkland Corporation (Oil, gas & consumable fuels)		169,511		4,604
	The Toronto-Dominion Bank (Banks)		266,590		17,482
	Toromont Industries, Ltd. (Trading companies & distributors)		64,990		5,255
					113,484

	Japan—6.8%
	Asahi Intecc Co., Ltd. (Health care equipment & supplies)		226,400		3,417
	Benefit One, Inc. (Professional services)		153,700		2,066
	Daikin Industries, Ltd. (Building products)		75,900		12,167
	Disco Corporation (Semiconductors & semiconductor equipment)		9,700		2,302
	Food & Life Cos., Ltd. (Hotels, restaurants & leisure)		116,700		2,491
	GMO Payment Gateway, Inc. (IT services)		39,400		2,773
	Harmonic Drive Systems, Inc. (Machinery)		65,000		1,895
	Hoya Corporation (Health care equipment & supplies)		108,100		9,230



	Issuer	Shares		Value

	Common Stocks—(continued)

	Japan—(continued)
	Keyence Corporation (Electronic equipment, instruments & components)		33,600	$	11,486
	M3, Inc. (Health care technology)		163,600		4,700
	MISUMI Group, Inc. (Machinery)		166,600		3,512
	MonotaRO Co., Ltd. (Trading companies & distributors)		298,000		4,428
	Nihon M&A Center Holdings, Inc. (Professional services)		339,100		3,606
	Olympus Corporation (Health care equipment & supplies)		846,000		17,000
	Rakus Co., Ltd. (Software)		173,500		2,045
*	SHIFT, Inc. (IT services)		26,000		3,384
	SMS Co., Ltd. (Professional services)		79,500		1,567
	TechnoPro Holdings, Inc. (Professional services)		203,800		4,081
	TIS, Inc. (IT services)		278,100		7,287
					99,437

	Asia—4.9%
	Australia—1.6%
	Aristocrat Leisure, Ltd. (Hotels, restaurants & leisure)		360,656		8,559
*	Atlassian Corporation plc Class “A” (Software)†		51,379		9,628
	Netwealth Group, Ltd. (Capital markets)		264,572		2,221
	Pro Medicus, Ltd. (Health care technology)		87,262		2,545
					22,953
	Hong Kong—2.6%
	AIA Group, Ltd. (Insurance)		3,536,800		38,335
	Singapore—0.7%
	DBS Group Holdings, Ltd. (Banks)		510,900		10,914

	Emerging Latin America—2.5%
	Argentina—0.6%
*	Globant S.A. (IT services)†		24,833		4,321
*	MercadoLibre, Inc. (Internet & direct marketing retail)		7,983		5,084
					9,405
	Brazil—0.4%
	B3 S.A. - Brasil Bolsa Balcao (Capital markets)		2,070,600		4,337
*	Locaweb Servicos de Internet S.A. (IT services)		1,324,393		1,422
					5,759
	Mexico—1.3%
	Grupo Aeroportuario del Sureste S.A.B. de C.V.—ADR (Transportation infrastructure)		27,719		5,444
	Wal-Mart de Mexico S.A.B. de C.V. (Food & staples retailing)		4,014,700		13,815
					19,259

See accompanying Notes to Financial Statements.

June 30, 2022

William Blair Funds

International Growth Fund

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)

	Issuer	Shares or Principal Amount		Value

	Common Stocks—(continued)

	Emerging Latin America—(continued)
	Uruguay—0.2%
*	Dlocal, Ltd. (IT services)†		80,740	$	2,119

	Emerging Mid-East—0.3%
	United Arab Emirates—0.3%
	First Abu Dhabi Bank PJSC (Banks)		959,042		4,903
	Total Common Stocks—95.2% (cost $1,212,712)				1,399,794

	Repurchase Agreement
	Fixed Income Clearing Corporation, 0.240% dated 6/30/22, due 7/1/22, repurchase price $64,810, collateralized by U.S. Treasury Bond 3.000%, due 02/15/49 and U.S. Treasury Note, 1.625%, due 05/15/31, valued at $66,106		$64,810		64,810
	Total Repurchase Agreement—4.4% (cost $64,810)				64,810
	Total Investments—99.6% (cost $1,277,522)				1,464,604
	Cash and other assets, less liabilities—0.4%				5,889
	Net assets—100.0%			$	1,470,493

ADR = American Depository Receipt

REIT = Real Estate Investment Trust

* = Non-income producing security

† = U.S. listed foreign security

At June 30, 2022, the Fund’s Portfolio of Investments includes the following industry categories (as a percentage of long-term investments):

Industrials	25.5	%
Information Technology	16.6	%
Financials	15.9	%
Health Care	15.4	%
Consumer Discretionary	9.7	%
Materials	5.0	%
Energy	4.7	%
Consumer Staples	4.3	%
Utilities	1.1	%
Real Estate	1.1	%
Communication Services	0.7	%
Total	100.0	%

At June 30, 2022, the Fund’s Portfolio of Investments includes the following currency categories (as a percentage of long-term investments):

Euro	26.8	%
British Pound Sterling	14.9	%
U.S. Dollar	9.5	%
Indian Rupee	7.2	%
Japanese Yen	7.1	%
Swiss Franc	6.0	%
Canadian Dollar	5.9	%
Danish Krone	5.6	%
Swedish Krona	4.0	%
Hong Kong Dollar	3.9	%
Indonesian Rupiah	1.8	%
New Taiwan Dollar	1.6	%
Chinese Yuan Renminbi	1.4	%
All Other Currencies	4.3	%
Total	100.0	%

See accompanying Notes to Financial Statements.

Semiannual Report

June 30, 2022

	Institutional International Growth Fund

	The Institutional International Growth Fund seeks long-term capital appreciation.

	AN OVERVIEW FROM THE PORTFOLIO MANAGERS

Simon Fennell Kenneth J. McAtamney Andrew Siepker, CFA	The William Blair Institutional International Growth Fund (the “Fund”) posted a 30.64% decrease, net of fees, for the six months ended June 30, 2022. By comparison, the Fund’s benchmark index, the MSCI All Country World ex-U.S. IMI (net) (the “Index”), decreased 19.08%. Underperformance versus the Index was primarily driven by negative stock selection across most sectors. The Industrials and Health Care sectors were the largest sources of negative relative returns. Within the Industrials sector, Ashtead and Atlas Copco detracted from relative results. Ashtead, which operates under the Sunbelt brand, rents a broad range of construction and industrial equipment from general tools to specialty equipment. The rental business is simple, with the rental provider offering customers homogenous products. While simplistic, Ashtead has the key benefit of scale in a largely fragmented market. The benefits of scale are significant. Ashtead is able to buy equipment cheaper than the competition, it has a large and well-invested fleet to meet customer needs, and it has a wide-reaching and growing distribution network, ensuring that equipment is closer to the customer. These advantages have driven growth in cash flow, in turn driving further investment that has resulted in share gains and greater scale. The company’s recent results were above consensus with rental revenue up 22%. Despite these results, the stock is down year-to-date as the P/E multiple has contracted from 25 times at the beginning of the year to 11 times at the end of the second quarter, one standard deviation below its 10-year average. Atlas Copco is a well-managed, consistently profitable provider of compressors, vacuum solutions, and air treatment systems within the industrials sector. The company reported solid quarterly results even though supply chain constraints impacted growth. New orders were up 26%, but operating profit margins fell short of expectations as supply chain constraints and COVID-related labor challenges weighed on profits. We believe the company continues to offer a sustainable growth profile with an envied business model and strong competitive advantages. The near term will likely be choppy, but backlogs are swelling as deliveries significantly lag orders. As a result, near-term growth will be held back but we believe that the length of the upcycle will likely be extended. Within the Health Care sector, Straumann was the largest detractor to performance. Straumann is the global leader in esthetic dentistry. The categories that the company participates in–implants, clear aligners, and digital dentistry–are growing well above global dental market rates. Straumann is more than just a products company. As a total solution provider, it offers training, support, and a wide range of services to the dental industry all over the world. In addition, the company is investing in technology and expanding capacity to make clear aligners a second long-term growth pillar. Straumann was the best-performing stock in our portfolio last year, and we trimmed the position in the second quarter. Recent results have been strong, with revenue up 27% in the quarter. Despite those results, P/E multiples have compressed significantly, from 58 times to 33 times this year. Lonza was an additional source of underperformance. Lonza is a leader in custom manufacturing of biopharmaceuticals and specialty ingredients. It is a premier contract development and manufacturing company with technical expertise in biologics, high-potency active pharma ingredients, and cell and gene therapies. As a preferred global partner to the biopharma industry, Lonza has enduring relationships that span the lifecycle of its partners’ portfolios of pharmaceuticals. It has a pipeline of more than 800 drugs and in our view is well positioned to sustainably grow faster than the industry. Demand remains strong. The level of


June 30, 2022	William Blair Funds	49

Institutional International Growth Fund

cash on hand at biotech companies is expected to be very robust for the next two to three years, and the company’s pipeline is tilted toward later stages of development. We trimmed the position earlier in the quarter at higher levels, and despite strong corporate performance, the company’s P/E multiple has contracted from 57 times to 33 times this year.

Partially offsetting these effects was an overweight to Health Care, an underweight to Emerging Middle East and Africa, and positive stock selection within the Energy sector. Within Energy, Reliance Industries added to relative results. Reliance is an Indian conglomerate with diverse businesses in energy, telecom, and retail. It benefited from the COVID reopening in India, leading to positive operating leverage across its businesses and record earnings. Reliance’s ongoing transformation from an asset- and capital expenditure-heavy cyclical energy business to more diversified, end-consumer business with a large and expanding total addressable market, is underappreciated in our view. We believe that the market underestimates the monetization potential at Jio, its telecom and digital services business with strong ecosystem benefits as a dominant provider of connectivity, content, and commerce.

Please refer to the Global Markets Review and Outlook relating to the Fund beginning on page 32.

Semiannual Report

June 30, 2022

Institutional International Growth Fund

Performance Highlights (Unaudited)

Average Annual Total Returns through 6/30/2022

	Year to Date			1 Year			3 Year			5 Year			10 Year
Institutional International Growth Fund		(30.64	)%		(30.06	)%		3.25	%		4.17	%		6.20	%
MSCI ACW ex-U.S. IMI (net)		(19.08	)		(19.86	)		1.55			2.50			5.01

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.

Sector Diversification (Unaudited)

The sector diversification shown is based on the total long-term securities.


June 30, 2022	William Blair Funds	51

Institutional International Growth Fund

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)



	Issuer	Shares		Value

	Common Stocks

	Europe, Mid-East—44.2%
	Belgium—1.4%
	KBC Group N.V. (Banks)		193,592	$	10,862
	Warehouses De Pauw CVA (Equity REIT)		59,265		1,863
					12,725
	Denmark—5.4%
	Chr Hansen Holding A/S (Chemicals)		44,028		3,205
	Coloplast A/S Class “B” (Health care equipment & supplies)		33,695		3,838
	DSV A/S (Air freight & logistics)		74,960		10,469
*	Genmab A/S (Biotechnology)		21,278		6,886
	Novo Nordisk A/S Class “B” (Pharmaceuticals)		163,005		18,079
	Orsted A/S (Electric utilities)		48,650		5,085
	Royal Unibrew A/S (Beverages)		33,668		2,981
					50,543
	Finland—1.0%
	Neste Oyj (Oil, gas & consumable fuels)		203,202		8,995
	France—11.6%
	Airbus SE (Aerospace & defense)		169,682		16,439
	Capgemini SE (IT services)		31,144		5,335
	Dassault Systemes SE (Software)		222,466		8,187
	Hermes International (Textiles, apparel & luxury goods)		4,650		5,200
	Kering S.A. (Textiles, apparel & luxury goods)		7,376		3,788
	L’Oreal S.A. (Personal products)		31,123		10,740
	LVMH Moet Hennessy Louis Vuitton SE (Textiles, apparel & luxury goods)		18,267		11,135
	Safran S.A. (Aerospace & defense)		129,469		12,782
	Sartorius Stedim Biotech (Life sciences tools & services)		19,582		6,142
	Teleperformance (Professional services)		25,824		7,937
	Thales S.A. (Aerospace & defense)		72,220		8,859
	Vinci S.A. (Construction & engineering)		134,774		11,999
					108,543
	Germany—3.8%
	Carl Zeiss Meditec AG (Health care equipment & supplies)		23,651		2,823
	CompuGroup Medical SE & Co. KgaA (Health care technology)		30,979		1,319
*	CTS Eventim AG & Co. KGaA (Entertainment)		67,792		3,552
	Infineon Technologies AG (Semiconductors & semiconductor equipment)		313,754		7,592
	MTU Aero Engines AG (Aerospace & defense)		84,657		15,410
	Nemetschek SE (Software)		28,506		1,726
	Puma SE (Textiles, apparel & luxury goods)		41,383		2,725
					35,147



	Issuer	Shares		Value

	Common Stocks—(continued)

	Europe, Mid-East—(continued)
	Ireland—2.8%
*	ICON plc (Life sciences tools & services)†		70,132	$	15,198
	Kingspan Group plc (Building products)		102,107		6,142
*	Ryanair Holdings plc—ADR (Airlines)		69,461		4,671
					26,011
	Israel—0.7%
*	Inmode, Ltd. (Health care equipment & supplies)†		59,325		1,329
	Mizrahi Tefahot Bank, Ltd. (Banks)		63,839		2,111
*	Nice, Ltd.—ADR (Software)		15,198		2,925
					6,365
	Italy—1.0%
	Amplifon SpA (Health care providers & services)		72,480		2,222
	Brunello Cucinelli SpA (Textiles, apparel & luxury goods)		42,613		1,919
	FinecoBank Banca Fineco SpA (Banks)		278,595		3,334
	Moncler SpA (Textiles, apparel & luxury goods)		51,972		2,229
					9,704
	Luxembourg—1.3%
	Eurofins Scientific SE (Life sciences tools & services)		79,990		6,294
	Tenaris S.A. (Energy equipment & services)		457,317		5,880
					12,174
	Netherlands—3.2%
*	Adyen N.V. (IT services)		5,927		8,621
	ASML Holding N.V. (Semiconductors & semiconductor equipment)		28,331		13,534
	BE Semiconductor Industries N.V. (Semiconductors & semiconductor equipment)		25,846		1,242
	Euronext N.V. (Capital markets)		41,512		3,389
	IMCD N.V. (Trading companies & distributors)		22,691		3,114
					29,900
	Norway—0.2%
*	AutoStore Holdings, Ltd. (Machinery)		430,047		611
	Gjensidige Forsikring ASA (Insurance)		71,659		1,452
					2,063
	Spain—2.1%
*	Amadeus IT Group S.A. (IT services)		268,554		14,961
	EDP Renovaveis S.A. (Independent power & renewable electricity producers)		205,278		4,845
					19,806

See accompanying Notes to Financial Statements.

Semiannual Report

June 30, 2022

Institutional International Growth Fund

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)



	Issuer	Shares		Value

	Common Stocks—(continued)

	Europe, Mid-East—(continued)
	Sweden—3.9%
	Atlas Copco AB Class “A” (Machinery)		765,272	$	7,149
	Beijer Ref AB (Trading companies & distributors)		151,870		2,077
	EQT AB (Capital markets)		145,319		2,975
	Evolution AB (Hotels, restaurants & leisure)		48,748		4,432
	Hemnet Group AB (Interactive Media & Services)		100,155		1,231
	Hexagon AB Class “B” (Electronic equipment, instruments & components)		678,670		7,049
	Indutrade AB (Machinery)		145,169		2,647
	Investment AB Latour Class “B” (Industrial conglomerates)		96,702		1,912
	Lifco AB Class “B” (Industrial conglomerates)		166,589		2,675
	Sweco AB Class “B” (Construction & engineering)		127,117		1,321
	Thule Group AB (Leisure products)		56,606		1,391
	Vitrolife AB (Biotechnology)		49,299		1,133
					35,992
	Switzerland—5.8%
	Bachem Holding AG Class “B” (Life sciences tools & services)		16,453		1,143
	Belimo Holding AG (Building products)		5,370		1,890
	Galenica AG (Health care providers & services)		35,697		2,741
	Lonza Group AG (Life sciences tools & services)		25,999		13,862
	Partners Group Holding AG (Capital markets)		10,612		9,562
	Siegfried Holding AG (Life sciences tools & services)		3,482		2,225
*	SIG Group AG (Containers & packaging)		197,817		4,356
	Sika AG (Chemicals)		34,759		8,010
	Straumann Holding AG (Health care equipment & supplies)		56,294		6,761
	Tecan Group AG (Life sciences tools & services)		8,110		2,355
	VAT Group AG (Machinery)		6,836		1,630
					54,535

	United Kingdom—16.0%
	3i Group plc (Capital markets)		274,165		3,699
	Ashtead Group plc (Trading companies & distributors)		165,845		6,943
	AstraZeneca plc (Pharmaceuticals)		134,586		17,694
	AVEVA Group plc (Software)		43,735		1,198
	Beazley plc (Insurance)		299,515		1,819
	Big Yellow Group plc (Equity REIT)		147,321		2,353
	Bunzl plc (Trading companies & distributors)		135,605		4,488
	Compass Group plc (Hotels, restaurants & leisure)		838,449		17,147
	Croda International plc (Chemicals)		103,164		8,128



	Issuer	Shares		Value

	Common Stocks—(continued)

	United Kingdom—(continued)
	CVS Group plc (Health care providers & services)		83,960	$	1,692
	Diageo plc (Beverages)		183,675		7,894
	Diploma plc (Trading companies & distributors)		73,589		1,996
	Experian plc (Professional services)		275,537		8,070
	Greggs plc (Hotels, restaurants & leisure)		93,427		2,056
	Halma plc (Electronic equipment, instruments & components)		192,746		4,714
	Intermediate Capital Group plc (Capital markets)		212,157		3,381
	Intertek Group plc (Professional services)		63,817		3,267
	Linde plc (Chemicals)†		51,896		14,922
	London Stock Exchange Group plc (Capital markets)		160,379		14,900
	Renishaw plc (Electronic equipment, instruments & components)		31,444		1,366
	Rentokil Initial plc (Commercial services & supplies)		1,302,434		7,525
	Rotork plc (Machinery)		1,049,899		3,075
	Segro plc (Equity REIT)		449,888		5,349
	Softcat plc (IT services)		107,339		1,721
	Spirax-Sarco Engineering plc (Machinery)		34,663		4,168
					149,565

	Emerging Asia—14.2%
	China—2.6%
	Chacha Food Co., Ltd. Class “A” (Food products)		239,700		2,038
	Foshan Haitian Flavouring & Food Co., Ltd. Class “A” (Food products)		242,363		3,271
	Li Ning Co., Ltd. (Textiles, apparel & luxury goods)		1,115,500		10,335
	Proya Cosmetics Co., Ltd. Class “A” (Personal products)		127,240		3,140
	Shenzhen Inovance Technology Co., Ltd. Class “A” (Machinery)		389,500		3,833
	Silergy Corporation (Semiconductors & semiconductor equipment)		18,000		1,450
					24,067
	India—7.0%
	Apollo Hospitals Enterprise, Ltd. (Health care providers & services)		35,737		1,660
	Crompton Greaves Consumer Electricals, Ltd. (Household durables)		441,134		1,905
	Havells India, Ltd. (Electrical equipment)		169,193		2,336
	HDFC Bank, Ltd. (Banks)		654,085		11,132
	Info Edge India, Ltd. (Interactive Media & Services)		36,312		1,743
	Infosys, Ltd. (IT services)		637,897		11,789
*	InterGlobe Aviation, Ltd. (Airlines)		162,318		3,308
	Petronet LNG, Ltd. (Oil, gas & consumable fuels)		843,306		2,296
	Pidilite Industries, Ltd. (Chemicals)		82,163		2,172

See accompanying Notes to Financial Statements.

June 30, 2022

William Blair Funds

Institutional International Growth Fund

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)



	Issuer	Shares		Value

	Common Stocks—(continued)

	Emerging Asia—(continued)
	India—(continued)
	Reliance Industries, Ltd. (Oil, gas & consumable fuels)		690,133	$	22,625
	UPL, Ltd. (Chemicals)		236,296		1,896
	Voltas, Ltd. (Construction & engineering)		182,548		2,243
					65,105
	Indonesia—1.7%
	Bank Central Asia Tbk PT (Banks)		33,239,030		16,176
	South Korea—0.4%
	Samsung SDI Co., Ltd. (Electronic equipment, instruments & components)		8,942		3,664
	Taiwan—2.5%
	Airtac International Group (Machinery)		75,204		2,506
	Globalwafers Co., Ltd. (Semiconductors & semiconductor equipment)		81,000		1,234
	MediaTek, Inc. (Semiconductors & semiconductor equipment)		426,000		9,327
	Taiwan Semiconductor Manufacturing Co., Ltd.—ADR (Semiconductors & semiconductor equipment)		125,575		10,266
					23,333

	Canada—7.9%
	Canadian National Railway Co. (Road & rail)		150,691		16,950
	Canadian Pacific Railway, Ltd. (Road & rail)		167,402		11,691
	CCL Industries, Inc. Class “B” (Containers & packaging)		50,912		2,406
	Dollarama, Inc. (Multiline retail)		94,510		5,442
	Intact Financial Corporation (Insurance)		62,105		8,760
*	Kinaxis, Inc. (Software)		24,424		2,637
*	Lululemon Athletica, Inc. (Textiles, apparel & luxury goods)		28,750		7,838
	Parkland Corporation (Oil, gas & consumable fuels)		109,697		2,979
	The Toronto-Dominion Bank (Banks)		172,519		11,313
	Toromont Industries, Ltd. (Trading companies & distributors)		42,057		3,401
					73,417

	Japan—6.9%
	Asahi Intecc Co., Ltd. (Health care equipment & supplies)		146,500		2,211
	Benefit One, Inc. (Professional services)		99,400		1,336
	Daikin Industries, Ltd. (Building products)		49,100		7,871
	Disco Corporation (Semiconductors & semiconductor equipment)		6,300		1,495
	Food & Life Cos., Ltd. (Hotels, restaurants & leisure)		75,500		1,612



	Issuer	Shares		Value

	Common Stocks—(continued)

	Japan—(continued)
	GMO Payment Gateway, Inc. (IT services)		25,500	$	1,795
	Harmonic Drive Systems, Inc. (Machinery)		42,100		1,227
	Hoya Corporation (Health care equipment & supplies)		70,000		5,977
	Keyence Corporation (Electronic equipment, instruments & components)		21,700		7,418
	M3, Inc. (Health care technology)		105,900		3,042
	MISUMI Group, Inc. (Machinery)		107,800		2,272
	MonotaRO Co., Ltd. (Trading companies & distributors)		192,800		2,865
	Nihon M&A Center Holdings, Inc. (Professional services)		219,500		2,334
	Olympus Corporation (Health care equipment & supplies)		547,500		11,002
	Rakus Co., Ltd. (Software)		112,300		1,324
*	SHIFT, Inc. (IT services)		16,900		2,200
	SMS Co., Ltd. (Professional services)		51,500		1,015
	TechnoPro Holdings, Inc. (Professional services)		131,900		2,641
	TIS, Inc. (IT services)		180,000		4,716
					64,353

	Asia—5.0%
	Australia—1.6%
	Aristocrat Leisure, Ltd. (Hotels, restaurants & leisure)		233,393		5,538
*	Atlassian Corporation plc Class “A” (Software)†		33,249		6,231
	Netwealth Group, Ltd. (Capital markets)		171,214		1,437
	Pro Medicus, Ltd. (Health care technology)		56,470		1,647
					14,853
	Hong Kong—2.7%
	AIA Group, Ltd. (Insurance)		2,288,863		24,809
	Singapore—0.7%
	DBS Group Holdings, Ltd. (Banks)		330,600		7,063

	Emerging Latin America—2.5%
	Argentina—0.7%
*	Globant S.A. (IT services)†		16,070		2,796
*	MercadoLibre, Inc. (Internet & direct marketing retail)		5,166		3,290
					6,086
	Brazil—0.4%
	B3 S.A. - Brasil Bolsa Balcao (Capital markets)		1,339,900		2,806
*	Locaweb Servicos de Internet S.A. (IT services)		857,086		921
					3,727

See accompanying Notes to Financial Statements.

Semiannual Report

June 30, 2022

Institutional International Growth Fund

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)

	Issuer	Shares or Principal Amount		Value

	Common Stocks—(continued)

	Emerging Latin America—(continued)
	Mexico—1.3%
	Grupo Aeroportuario del Sureste S.A.B. de C.V.—ADR (Transportation infrastructure)		17,938	$	3,523
	Wal-Mart de Mexico S.A.B. de C.V. (Food & staples retailing)		2,598,100		8,940
					12,463
	Uruguay—0.1%
*	Dlocal, Ltd. (IT services)†		52,250		1,372

	Emerging Mid-East—0.4%
	United Arab Emirates—0.4%
	First Abu Dhabi Bank PJSC (Banks)		620,630		3,173
	Total Common Stocks—97.1% (cost $793,697)				905,729

	Repurchase Agreement
	Fixed Income Clearing Corporation, 0.240% dated 6/30/22, due 7/1/22, repurchase price $24,449, collateralized by U.S. Treasury Note, 1.625%, due 05/15/31, valued at $24,938		$24,449		24,449
	Total Repurchase Agreement—2.6% (cost $24,449)				24,449
	Total Investments—99.7% (cost $818,146)				930,178
	Cash and other assets, less liabilities—0.3%				2,763
	Net assets—100.0%			$	932,941

ADR = American Depository Receipt

REIT = Real Estate Investment Trust

* = Non-income producing security

† = U.S. listed foreign security

At June 30, 2022, the Fund’s Portfolio of Investments includes the following industry categories (as a percentage of long-term investments):

Industrials	25.5%
Information Technology	16.6%
Financials	15.9%
Health Care	15.4%
Consumer Discretionary	9.7%
Materials	5.0%
Energy	4.7%
Consumer Staples	4.3%
Utilities	1.1%
Real Estate	1.1%
Communication Services	0.7%
Total	100.0%

At June 30, 2022, the Fund’s Portfolio of Investments includes the following currency categories (as a percentage of long-term investments):

Euro	26.8%
British Pound Sterling	14.9%
U.S. Dollar	9.5%
Indian Rupee	7.2%
Japanese Yen	7.1%
Swiss Franc	6.0%
Canadian Dollar	5.9%
Danish Krone	5.6%
Swedish Krona	4.0%
Hong Kong Dollar	3.9%
Indonesian Rupiah	1.8%
New Taiwan Dollar	1.6%
Chinese Yuan Renminbi	1.4%
All Other Currencies	4.3%
Total	100.0%

See accompanying Notes to Financial Statements.

June 30, 2022

William Blair Funds

	International Small Cap Growth Fund

	The International Small Cap Growth Fund seeks long-term capital appreciation.

	AN OVERVIEW FROM THE PORTFOLIO MANAGERS

Simon Fennell Andrew G. Flynn, CFA D.J. Neiman, CFA	The William Blair International Small Cap Growth Fund (Class N shares) (the “Fund”) posted a 38.95% decrease, net of fees, for the six months June 30, 2022. By comparison, the Fund’s benchmark index, the MSCI All Country World ex-U.S. Small Cap Index (net) (the “Index”), decreased 22.92%. Six-month underperformance versus the Index was primarily driven by style headwinds amid strong outperformance of low-valuation stocks. From an attribution perspective, stock selection was weakest within Industrials and Health Care, which was partially offset by positive stock selection within Consumer Staples and Energy. Industrials stock selection was hampered, primarily driven by Benefit One. Benefit One is a provider of HR-related services, in the form of outsourced fringe benefits. A structural tightening of the Japanese labor market has increased the need for employers to attract hires using the types of services offered by Benefit One. We believe that future regulatory changes should also drive increased demand. As the business has a fixed cost base and low variable costs, operating leverage is high, supporting a rate of profit growth at the top end of the peer group. The share price declined on lower-than-consensus operating profit, primarily due to an increase in costs in the fringe benefits segment of the business. Health Care stock selection was also weaker due to InMode. InMode, the Israeli-based medical device company, has developed proprietary minimally invasive and non-invasive technologies for various aesthetic applications including fat reduction, skin tightening, and muscle toning. While the company is currently focusing on the large total-available-market for the medical aesthetics market, the products are applicable in a wide array of indications, such as women’s health, ENT (ear, nose & throat), and ophthalmology, which could significantly expand the targeted market going forward. Even after a strong run in 2021 and continued strength in earnings into 2022, the share price has been hampered by valuation compression and headwinds to growth such as supply chain disruptions and challenges from Ukraine/Russia/China. Despite the difficult backdrop for small-cap healthcare in particular, we remain constructive on InMode’s fundamental outlook. Partially offsetting these effects was positive stock selection within Consumer Staples and Energy, coupled with the positive effect of an underweight allocation to materials. Positive stock selection within Consumer Staples was bolstered by Proya Cosmetics. Proya is a leading domestic Chinese beauty company with differentiated positioning in channels, brands, products, and regions (lower-tier cities), as well as solid execution. We expect Proya to be one of the key beneficiaries of the domestic substitution trend within China’s cosmetics and beauty industry, which is currently dominated by overseas brands, and to continue gaining share in this highly fragmented market. The share price strengthened after the company reported strong fiscal 2021 gains primarily attributed to its continued new product launches and expansion into increased online purchases. Energy stock selection was also positive, driven by Parkland Corp. Parkland is a Canadian fuel retail company and benefits from a vertically integrated fuel downstream business model with large economies of scale. We expect the company should be able to achieve top-line organic growth in the low- to mid-single digits augmented by value-accretive mergers & acquisitions activity and steady margin improvement. The share price strengthened alongside rising commodity crude prices in the second quarter coupled with solid first quarter results with upbeat guidance for the second half of 2022. Please refer to the Global Markets Review and Outlook relating to the Fund beginning on page 32.


56	Semiannual Report	June 30, 2022

International Small Cap Growth Fund

Performance Highlights (Unaudited)

Average Annual Total Returns through 6/30/2022

	Year to Date			1 Year			3 Year			5 Year			10 Year
Class N		(38.95	)%		(36.91	)%		(0.62	)%		(0.05	)%		4.78	%
Class I		(38.87	)		(36.74	)		(0.35	)		0.24			5.08
Class R6		(38.79	)		(36.64	)		(0.21	)		0.34			5.22
MSCI ACW ex-U.S. Small Cap Index (net)		(22.92	)		(22.45	)		2.94			2.55			6.22

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.

Sector Diversification (Unaudited)

The sector diversification shown is based on the total long-term securities.

June 30, 2022

William Blair Funds

International Small Cap Growth Fund

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)



	Issuer	Shares		Value

	Common Stocks

	Europe, Mid-East—33.2%
	Belgium—1.7%
	Melexis N.V. (Semiconductors & semiconductor equipment)		40,483	$	2,904
	Warehouses De Pauw CVA (Equity REIT)		37,908		1,192
					4,096
	Denmark—1.1%
	Royal Unibrew A/S (Beverages)		30,306		2,683
	Finland—1.5%
*	Musti Group Oyj (Specialty retail)		105,321		1,881
	Valmet Oyj (Machinery)		70,402		1,727
					3,608
	Germany—2.7%
	CompuGroup Medical SE & Co. KgaA (Health care technology)		32,748		1,395
*	CTS Eventim AG & Co. KGaA (Entertainment)		67,759		3,550
	Siltronic AG (Semiconductors & semiconductor equipment)		19,416		1,443
					6,388
	Israel—1.7%
*	Inmode, Ltd. (Health care equipment & supplies)†		147,376		3,303
	Maytronics, Ltd. (Household durables)		43,021		605
					3,908
	Italy—4.3%
	Amplifon SpA (Health care providers & services)		33,164		1,017
	Ariston Holding N.V. (Household durables)		433,532		3,550
	Azimut Holding SpA (Capital markets)		45,775		796
	Brembo SpA (Auto components)		141,523		1,375
	Brunello Cucinelli SpA (Textiles, apparel & luxury goods)		38,465		1,732
	Carel Industries SpA (Building products)		85,750		1,704
					10,174
	Netherlands—0.8%
	BE Semiconductor Industries N.V. (Semiconductors & semiconductor equipment)		37,793		1,817
	Norway—1.8%
*	AutoStore Holdings, Ltd. (Machinery)		416,862		592
	Gjensidige Forsikring ASA (Insurance)		97,758		1,980
	TOMRA Systems ASA (Commercial services & supplies)		82,594		1,532
					4,104
	Spain—1.7%
	EDP Renovaveis S.A. (Independent power & renewable electricity producers)		117,212		2,766
*	Solaria Energia y Medio Ambiente S.A. (Independent power & renewable electricity producers)		61,067		1,296
					4,062



	Issuer	Shares		Value

	Common Stocks—(continued)

	Europe, Mid-East—(continued)
	Sweden—11.7%
	AddTech AB Class “B” (Trading companies & distributors)		134,192	$	1,750
	Arjo AB Class “B” (Health care equipment & supplies)		186,648		1,180
	Beijer Ref AB (Trading companies & distributors)		166,465		2,276
	Biotage AB (Life sciences tools & services)		145,871		2,581
	Bravida Holding AB (Commercial services & supplies)		16,455		143
	Bufab AB (Trading companies & distributors)		47,652		1,234
	Fortnox AB (Software)		445,470		2,047
	Hemnet Group AB (Interactive Media & Services)		114,889		1,412
	Investment AB Latour Class “B” (Industrial conglomerates)		98,549		1,949
	Lagercrantz Group AB Class “B” (Electronic equipment, instruments & components)		215,462		1,745
	Lifco AB Class “B” (Industrial conglomerates)		138,984		2,232
	MIPS AB (Leisure products)		60,615		2,644
	Nolato AB Class “B” (Industrial conglomerates)		213,467		1,148
*	Sdiptech AB Class “B” (Commercial services & supplies)		70,643		1,634
	Sweco AB Class “B” (Construction & engineering)		162,722		1,691
	Vitrolife AB (Biotechnology)		80,285		1,846
					27,512
	Switzerland—4.2%
	Galenica AG (Health care providers & services)		46,102		3,540
	Kardex Holding AG (Machinery)		19,905		3,307
*	Siegfried Holding AG (Life sciences tools & services)		4,538		2,899
					9,746

	Emerging Asia—16.7%
	China—3.6%
	Chacha Food Co., Ltd. Class “A” (Food products)		491,600		4,181
	Proya Cosmetics Co., Ltd. Class “A” (Personal products)		173,444		4,279
					8,460
	India—7.4%
*	Aavas Financiers, Ltd. (Thrifts & mortgage finance)		86,701		2,231
*	Affle India, Ltd. (Media)		60,557		817
*	AU Small Finance Bank, Ltd. (Banks)		731,686		5,476
	Info Edge India, Ltd. (Interactive Media & Services)		43,428		2,084

See accompanying Notes to Financial Statements.

Semiannual Report

June 30, 2022

International Small Cap Growth Fund

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)



	Issuer	Shares		Value

	Common Stocks—(continued)

	Emerging Asia—(continued)
	India—(continued)
*	Motherson Sumi Wiring India, Ltd. (Auto components)		2,222,488	$	1,978
	Samvardhana Motherson International, Ltd. (Auto components)		2,555,955		3,813
	UPL, Ltd. (Chemicals)		126,131		1,012
					17,411
	Indonesia—1.2%
	Ace Hardware Indonesia Tbk PT (Specialty retail)		22,834,900		1,181
	Bank Negara Indonesia Persero Tbk PT (Banks)		3,302,500		1,740
					2,921
	Malaysia—0.6%
	MR DIY Group M Bhd (Specialty retail)		3,155,900		1,482
	South Korea—0.7%
	Koh Young Technology, Inc. (Semiconductors & semiconductor equipment)		154,466		1,677
	Taiwan—3.2%
	ASPEED Technology, Inc. (Semiconductors & semiconductor equipment)		17,600		1,125
	Tripod Technology Corporation (Electronic equipment, instruments & components)		775,000		2,906
	Voltronic Power Technology Corporation (Electrical equipment)		69,451		3,375
					7,406

	Japan—16.2%
	BayCurrent Consulting, Inc. (Professional services)		14,400		3,831
	Benefit One, Inc. (Professional services)		193,500		2,601
	Food & Life Cos., Ltd. (Hotels, restaurants & leisure)		132,100		2,820
	GMO Payment Gateway, Inc. (IT services)		25,200		1,774
	Harmonic Drive Systems, Inc. (Machinery)		101,600		2,962
	Japan Elevator Service Holdings Co., Ltd. (Commercial services & supplies)		194,200		2,021
	JINS Holdings, Inc. (Specialty retail)		38,500		1,209
	Meitec Corporation (Professional services)		145,800		2,350
	Rakus Co., Ltd. (Software)		200,300		2,360
	SCSK Corporation (IT services)		156,300		2,645
*	SHIFT, Inc. (IT services)		26,100		3,397
	SMS Co., Ltd. (Professional services)		193,600		3,815
	TechnoPro Holdings, Inc. (Professional services)		224,900		4,504
	TIS, Inc. (IT services)		74,000		1,939
					38,228



	Issuer	Shares		Value

	Common Stocks—(continued)

	United Kingdom—13.6%
	AVEVA Group plc (Software)		30,198	$	828
	Beazley plc (Insurance)		806,842		4,901
	Burford Capital, Ltd. (Diversified financial services)		193,094		1,892
	CVS Group plc (Health care providers & services)		64,726		1,305
	Diploma plc (Trading companies & distributors)		121,837		3,304
	Greggs plc (Hotels, restaurants & leisure)		72,108		1,587
	IntegraFin Holdings plc (Capital markets)		415,246		1,136
*	Kin & Carta plc (IT services)		342,279		731
	Pets at Home Group plc (Specialty retail)		456,273		1,706
	Renishaw plc (Electronic equipment, instruments & components)		68,495		2,975
	Rotork plc (Machinery)		1,057,475		3,097
	Safestore Holdings plc (Equity REIT)		323,533		4,179
	Softcat plc (IT services)		269,437		4,320
					31,961

	Emerging Latin America—7.3%
	Brazil—2.9%
	Arezzo Industria e Comercio S.A. (Textiles, apparel & luxury goods)		244,200		3,245
	Pet Center Comercio e Participacoes S.A. (Specialty retail)		857,092		1,626
	TOTVS S.A. (Software)		438,400		1,949
					6,820
	Mexico—4.4%
	Grupo Aeroportuario del Centro Norte S.A.B. de C.V. (Transportation infrastructure)		912,800		5,831
	Grupo Aeroportuario del Sureste S.A.B. de C.V. Class “B” (Transportation infrastructure)		161,530		3,184
	Regional S.A.B. de C.V. (Banks)		307,800		1,462
					10,477

	Canada—4.9%
	EQB, Inc. (Thrifts & mortgage finance)		45,371		1,874
*	Kinaxis, Inc. (Software)		30,021		3,241
	Parkland Corporation (Oil, gas & consumable fuels)		166,990		4,535
	Richelieu Hardware, Ltd. (Trading companies & distributors)		72,453		1,896
					11,546

	Emerging Europe, Mid-East, Africa—3.1%
	Greece—0.5%
	JUMBO S.A. (Specialty retail)		85,584		1,243
	South Africa—2.0%
	Clicks Group, Ltd. (Food & staples retailing)		201,648		3,388
	The Bidvest Group, Ltd. (Industrial conglomerates)		99,980		1,288
					4,676

See accompanying Notes to Financial Statements.

June 30, 2022

William Blair Funds

International Small Cap Growth Fund

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)

	Issuer	Shares or Principal Amount			Value

	Common Stocks—(continued)

	Emerging Europe, Mid-East, Africa—(continued)
	United Arab Emirates—0.6%
*	Network International Holdings plc (IT services)		577,547		$	1,327

	Asia—2.4%
	Australia—1.4%
	Domino’s Pizza Enterprises, Ltd. (Hotels, restaurants & leisure)		7,416			348
	Netwealth Group, Ltd. (Capital markets)		94,475	��		793
	Pro Medicus, Ltd. (Health care technology)		69,779			2,035
						3,176
	New Zealand—1.0%
	Mainfreight, Ltd. (Air freight & logistics)		54,458			2,377
	Total Common Stocks—97.4% (cost $268,782)					229,286

	Repurchase Agreement
	Fixed Income Clearing Corporation, 0.240% dated 6/30/22, due 7/1/22, repurchase price $6,440, collateralized by U.S. Treasury Note, 1.625%, due 05/15/31, valued at $6,568		$6,439			6,439
	Total Repurchase Agreement—2.7% (cost $6,439)					6,439
	Total Investments—100.1% (cost $275,221)					235,725
	Liabilities, plus cash and other assets—(0.1)%					(292	)
	Net assets—100.0%				$	235,433

REIT = Real Estate Investment Trust

* = Non-income producing security

† = U.S. listed foreign security

At June 30, 2022, the Fund’s Portfolio of Investments includes the following industry categories (as a percentage of long-term investments):

Industrials	30.4%
Information Technology	18.8%
Consumer Discretionary	14.8%
Financials	10.6%
Health Care	9.2%
Consumer Staples	6.3%
Communication Services	3.4%
Real Estate	2.3%
Energy	2.0%
Utilities	1.8%
Materials	0.4%
Total	100.0%

At June 30, 2022, the Fund’s Portfolio of Investments includes the following currency categories (as a percentage of long-term investments):

Japanese Yen	16.7%
British Pound Sterling	14.5%
Euro	13.7%
Swedish Krona	12.0%
Indian Rupee	7.6%
Canadian Dollar	5.0%
Mexican Peso	4.6%
Swiss Franc	4.3%
Chinese Yuan Renminbi	3.7%
New Taiwan Dollar	3.2%
Brazilian Real	3.0%
South African Rand	2.0%
Norwegian Krone	1.8%
U.S. Dollar	1.4%
Australian Dollar	1.4%
Indonesian Rupiah	1.3%
Danish Krone	1.2%
New Zealand Dollar	1.0%
All Other Currencies	1.6%
Total	100.0%

See accompanying Notes to Financial Statements.

Semiannual Report

June 30, 2022

	Emerging Markets Leaders Fund

	The Emerging Markets Leaders Fund seeks long-term capital appreciation.

	AN OVERVIEW FROM THE PORTFOLIO MANAGERS

Todd M. McClone, CFA Kenneth J. McAtamney Hugo Scott-Gall	The William Blair Emerging Markets Leaders Fund (Class N shares) (the “Fund”) posted a 23.48% decrease, net of fees, for the six months ended June 30, 2022. By comparison, the Fund’s benchmark index, the MSCI Emerging Markets Index (net) (the “Index”), decreased 17.63%. Six-month underperformance versus the Index was driven by negative stock selection effect within Communication Services, Consumer Discretionary, and Information Technology. Within Communication Services, Yandex, a Russian internet platform, and SEA, a Southeast Asia gaming and e-commerce company, dragged down relative performance. Within Consumer Discretionary, e-commerce names were notable detractors; in particular, MercadoLibre and Coupang were dragged down by performance in the second quarter. Globant and Mediatek, within the IT services and semiconductor industries, respectively, weighed on the Information Technology sector’s relative performance. Yandex fell sharply along with Russian equities on the back of the country’s invasion of Ukraine. We exited the position in February 2022. SEA underperformed amid market rotation and weaker fundamental results, with slowing growth in the core gaming segment and continued investments into new markets, which added to investor concerns about Indian market restrictions and management’s capital-allocation discipline. Mediatek continued robust financial results; however, the share price declined as broader consumer weakness and slower incremental 5G adoption suggest rising risk to 2022-2023 expectations. Partially offsetting these effects was positive stock selection within the Energy sector, coupled with the overweight allocation to Consumer Staples and Industrials. Within Energy, Reliance Industries bolstered relative performance as the company delivered very strong results, benefiting from robust retail trends amid India reopening, rising gas prices, and wireless tariff increases. We believe that Reliance’s transformation from an asset-heavy, cyclical energy business to more diversified, end-consumer businesses with large and expanding total addressable markets is under-appreciated and will continue to drive strong growth and returns over the long term while the commodity business will continue to provide earnings support in the near term. Please refer to the Global Markets Review and Outlook relating to the Fund beginning on page 32.


June 30, 2022	William Blair Funds	61

Emerging Markets Leaders Fund

Performance Highlights (Unaudited)

Average Annual Total Returns through 6/30/2022

	Year to Date			1 Year			3 Year			5 Year			10 Year
Class N		(23.48	)%		(31.88	)%		(0.48	)%		2.22	%		2.87	%
Class I		(23.30	)		(31.66	)		(0.22	)		2.49			3.16
Class R6		(23.23	)		(31.56	)		(0.13	)		2.55			3.25
MSCI Emerging Markets Index (net)		(17.63	)		(25.28	)		0.57			2.18			3.06

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.

Sector Diversification (Unaudited)

The sector diversification shown is based on the total long-term securities.

Semiannual Report

June 30, 2022

Emerging Markets Leaders Fund

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)



	Issuer	Shares		Value

	Common Stocks

	Emerging Asia—73.3%
	China—33.2%
*	Alibaba Group Holding, Ltd. (Internet & direct marketing retail)		1,123,628	$	16,024
	China Merchants Bank Co., Ltd. Class “H” (Banks)		2,017,000		13,495
*	China Tourism Group Duty Free Corporation, Ltd. Class “A” (Specialty retail)		352,056		12,250
	Foshan Haitian Flavouring & Food Co., Ltd. Class “A” (Food products)		570,701		7,703
	JD.com, Inc. Class “A” (Internet & direct marketing retail)		142,054		4,577
	Kweichow Moutai Co., Ltd. Class “A” (Beverages)		39,059		11,932
	Midea Group Co., Ltd. Class “A” (Household durables)		909,300		8,203
	Shenzhen Inovance Technology Co., Ltd. Class “A” (Machinery)		523,100		5,147
	Shenzhou International Group Holdings, Ltd. (Textiles, apparel & luxury goods)		211,200		2,558
	Silergy Corporation (Semiconductors & semiconductor equipment)		28,000		2,255
	Suzhou Maxwell Technologies Co., Ltd. Class “A” (Electrical equipment)		112,200		8,228
	Tencent Holdings, Ltd. (Interactive Media & Services)		451,400		20,387
	TravelSky Technology, Ltd. Class “H” (IT services)		2,971,000		5,770
	Wuxi Lead Intelligent Equipment Co., Ltd. Class “A” (Machinery)		786,169		7,420
*	Zhangzhou Pientzehuang Pharmaceutical Co., Ltd. Class “A” (Pharmaceuticals)		107,800		5,745
					131,694
	India—22.1%
	Asian Paints, Ltd. (Chemicals)		84,060		2,854
	Bajaj Finance, Ltd. (Consumer finance)		84,800		5,790
	Britannia Industries, Ltd. (Food products)		93,334		4,067
	Havells India, Ltd. (Electrical equipment)		211,314		2,917
	HDFC Bank, Ltd. (Banks)		667,188		11,355
	Housing Development Finance Corporation, Ltd. (Thrifts & mortgage finance)		233,247		6,362
	Infosys, Ltd. (IT services)		691,950		12,788
*	InterGlobe Aviation, Ltd. (Airlines)		303,074		6,177
*	Motherson Sumi Wiring India, Ltd. (Auto components)		931,670		829
*	Reliance Industries, Ltd. (Oil, gas & consumable fuels)		766,267		25,121
*	UPL, Ltd. (Chemicals)		1,145,512		9,190
					87,450
	Indonesia—5.5%
	Bank Central Asia Tbk PT (Banks)		28,834,500		14,033
	Bank Rakyat Indonesia Persero Tbk PT (Banks)		22,642,300		6,307
*	Sea, Ltd.—ADR (Entertainment)		24,903		1,665
					22,005



	Issuer	Shares		Value

	Common Stocks—(continued)

	Emerging Asia—(continued)
	South Korea—0.8%
	Kakao Corporation (Interactive Media & Services)		60,891	$	3,278
	Taiwan—10.5%
*	Airtac International Group (Machinery)		182,000		6,066
*	E.Sun Financial Holding Co., Ltd. (Banks)		5,003,267		4,880
	eMemory Technology, Inc. (Semiconductors & semiconductor equipment)		61,000		2,123
	MediaTek, Inc. (Semiconductors & semiconductor equipment)		247,000		5,408
	Taiwan Semiconductor Manufacturing Co., Ltd.—ADR (Semiconductors & semiconductor equipment)		283,060		23,140
					41,617
	Thailand—1.2%
	Bangkok Dusit Medical Services PCL Class “F” (Health care providers & services)		6,536,600		4,622

	Emerging Latin America—20.6%
	Argentina—4.0%
*	Globant S.A. (IT services)†		47,592		8,281
*	MercadoLibre, Inc. (Internet & direct marketing retail)		12,203		7,772
					16,053
	Brazil—7.6%
	B3 S.A. - Brasil Bolsa Balcao (Capital markets)		3,798,600		7,955
*	Locaweb Servicos de Internet S.A. (IT services)		1,511,000		1,623
	Raia Drogasil S.A. (Food & staples retailing)		783,900		2,876
	Rumo S.A. (Road & rail)		1,628,800		4,970
	TOTVS S.A. (Software)		1,265,200		5,623
	WEG S.A. (Electrical equipment)		1,376,400		6,957
					30,004
	Mexico—7.0%
	Grupo Aeroportuario del Pacifico S.A.B. de C.V. Class “B” (Transportation infrastructure)		1,058,700		14,801
	Wal-Mart de Mexico S.A.B. de C.V. (Food & staples retailing)		3,742,800		12,879
					27,680
	Peru—1.4%
	Credicorp, Ltd. (Banks)†		46,180		5,537
	Uruguay—0.6%
*	Dlocal, Ltd. (IT services)†		92,009		2,415

	Emerging Mid-East, Africa—4.3%
	South Africa—4.1%
	Capitec Bank Holdings, Ltd. (Banks)		85,222		10,383
	Clicks Group, Ltd. (Food & staples retailing)		363,819		6,112
					16,495

See accompanying Notes to Financial Statements.

June 30, 2022

William Blair Funds

Emerging Markets Leaders Fund

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)

	Issuer	Shares or Principal Amount		Value

	Common Stocks—(continued)

	Emerging Mid-East, Africa—(continued)
	United Arab Emirates—0.2%
*	Network International Holdings plc (IT services)		309,044	$	710
	Total Common Stocks—98.2% (cost $431,390)				389,560

	Repurchase Agreement
	Fixed Income Clearing Corporation, 0.240% dated 6/30/22, due 7/1/22, repurchase price $3,263, collateralized by U.S. Treasury Note, 1.625%, due 05/15/31, valued at $3,328		$3,263		3,263
	Total Repurchase Agreement—0.8% (cost $3,263)				3,263
	Total Investments—99.0% (cost $434,653)				392,823
	Cash and other assets, less liabilities—1.0%				3,793
	Net assets—100.0%			$	396,616

ADR = American Depository Receipt

* = Non-income producing security

† = U.S. listed foreign security

At June 30, 2022, the Fund’s Portfolio of Investments includes the following industry categories (as a percentage of long-term investments):

Financials	22.1%
Information Technology	18.0%
Industrials	16.1%
Consumer Discretionary	13.4%
Consumer Staples	11.7%
Communication Services	6.5%
Energy	6.4%
Materials	3.1%
Health Care	2.7%
Total	100.0%

At June 30, 2022, the Fund’s Portfolio of Investments includes the following currency categories (as a percentage of long-term investments):

Indian Rupee	22.5%
Chinese Yuan Renminbi	17.1%
Hong Kong Dollar	16.1%
U.S. Dollar	12.5%
Brazilian Real	7.7%
Mexican Peso	7.1%
New Taiwan Dollar	5.3%
Indonesian Rupiah	5.2%
South African Rand	4.3%
Thai Baht	1.2%
All Other Currencies	1.0%
Total	100.0%

See accompanying Notes to Financial Statements.

Semiannual Report

June 30, 2022

	Emerging Markets Growth Fund

	The Emerging Markets Growth Fund seeks long-term capital appreciation.

	AN OVERVIEW FROM THE PORTFOLIO MANAGERS

Todd M. McClone, CFA Casey K. Preyss, CFA Vivian Lin Thurston, CFA	The William Blair Emerging Markets Growth Fund (Class N shares) (the “Fund”) posted a 28.04% decrease, net of fees, for the six months ended June 30, 2022. By comparison, the Fund’s benchmark index, the MSCI Emerging Markets IMI (net) (the “Index”), decreased 17.94%. Six-month underperformance versus the Index was driven by negative stock selection effect within Information Technology, Financials, Consumer Discretionary, and Communication Services. Information Technology was dragged down by semiconductor names, in particular- Silergy and Mediatek. Silergy is the market leader in China for analog semiconductors and in our view remains a beneficiary of structural growth in demand from automobile, cloud, and 5G end-markets, as well as a localization trend. The stock price weakened amid a deteriorated demand backdrop. Mediatek, a Taiwanese semiconductor design company, continued to deliver strong results on the back of stable 5G pricing and continued market share gain; however, unit growth expectations are decelerating amid broader consumer weakness and slower incremental 5G adoption. Within the Financials sector, TCS Group and OTP Bank hindered relative results. TCS Group, the leading Russian digital financial services company, and OTP Bank, the largest bank in Hungary with exposure to Eastern Europe, fell sharply due to the Russia–Ukraine conflict. We exited both positions in the wake of Russia’s invasion of Ukraine. MercadoLibre was the main detractor within the Consumer Discretionary sector, dragged down by the share underperformance in the second quarter. Within Communication Services, internet platforms Yandex of Russia and Kakao of Korea detracted the most. We sold Yandex to eliminate Russia exposure. Kakao’s share price declined amid market concerns related to increasing labor cost and management’s focus on content investments. Partially offsetting these effects was positive stock selection within the energy sector bolstered by strong relative performance from Reliance Industries. The company delivered very strong results in the first quarter, benefiting from robust retail trends amid India reopening, rising gas prices, and wireless tariff increases. We believe that the company’s transformation from an asset-heavy, cyclical energy business to more diversified, end-consumer businesses with large and expanding total addressable markets is under-appreciated and will continue to drive strong growth and returns over the long term while commodity business will continue to provide earnings support in the near term. Please refer to the Global Markets Review and Outlook relating to the Fund beginning on page 32.

June 30, 2022

William Blair Funds

Emerging Markets Growth Fund

Performance Highlights (Unaudited)

Average Annual Total Returns through 6/30/2022
	Year to Date			1 Year			3 Year			5 Year			10 Year
Class N		(28.04	)%		(32.86	)%		4.75	%		4.55	%		4.64	%
Class I		(27.95	)		(32.68	)		5.03			4.82			4.90
Class R6		(27.93	)		(32.62	)		5.11			4.91			5.03
MSCI Emerging Markets IMI (net)		(17.94	)		(24.75	)		1.15			2.33			3.20

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.

Sector Diversification (Unaudited)

The sector diversification shown is based on the total long-term securities.

Semiannual Report

June 30, 2022

Emerging Markets Growth Fund

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)



Issuer	Shares		Value

Common Stocks

Emerging Asia—75.4%
China—25.0%
ANTA Sports Products, Ltd. (Textiles, apparel & luxury goods)		361,000	$	4,435
Bank of Chengdu Co., Ltd. Class “A” (Banks)		2,188,835		5,421
Bank of Ningbo Co., Ltd. Class “A” (Banks)		1,788,700		9,568
Chacha Food Co., Ltd. Class “A” (Food products)		330,472		2,811
China Meidong Auto Holdings, Ltd. (Specialty retail)		1,036,000		3,261
China Merchants Bank Co., Ltd. Class “H” (Banks)		1,715,000		11,475
China Tourism Group Duty Free Corporation, Ltd. Class “A” (Specialty retail)		228,000		7,933
East Money Information Co., Ltd. Class “A” (Capital markets)		1,452,740		5,512
Huaneng Lancang River Hydropower, Inc. Class “A” (Independent power & renewable electricity producers)		2,447,900		2,556
Inner Mongolia Yili Industrial Group Co., Ltd. Class “A” (Food products)		684,700		3,984
JD.com, Inc. Class “A” (Internet & direct marketing retail)		510,921		16,460
Jiumaojiu International Holdings, Ltd. (Hotels, restaurants & leisure)		1,730,000		4,597
Kweichow Moutai Co., Ltd. Class “A” (Beverages)		37,774		11,539
Li Ning Co., Ltd. (Textiles, apparel & luxury goods)		1,097,000		10,164
Longshine Technology Group Co., Ltd. Class “A” (Software)		473,500		1,782
NARI Technology Co., Ltd. Class “A” (Electrical equipment)		627,120		2,529
NAURA Technology Group Co., Ltd. Class “A” (Semiconductors & semiconductor equipment)		56,800		2,351
NetEase, Inc. (Entertainment)		899,900		16,526
Proya Cosmetics Co., Ltd. Class “A” (Personal products)		228,820		5,646
Shenzhen Inovance Technology Co., Ltd. Class “A” (Machinery)		721,464		7,099
Silergy Corporation (Semiconductors & semiconductor equipment)		31,000		2,497
Suzhou Maxwell Technologies Co., Ltd. Class “A” (Electrical equipment)		69,307		5,083
Tencent Holdings, Ltd. (Interactive Media & Services)		288,960		13,051
Wuxi Lead Intelligent Equipment Co., Ltd. Class “A” (Machinery)		542,800		5,123
Yunnan Botanee Bio-Technology Group Co., Ltd. Class “A” (Personal products)		175,820		5,713
Yunnan Energy New Material Co., Ltd. Class “A” (Chemicals)		64,100		2,398
Zhangzhou Pientzehuang Pharmaceutical Co., Ltd. Class “A” (Pharmaceuticals)		71,500		3,810



	Issuer	Shares		Value

	Common Stocks—(continued)

	Emerging Asia—(continued)
	China—(continued)
	Zhejiang Jingsheng Mechanical & Electrical Co., Ltd. Class “A” (Semiconductors & semiconductor equipment)		420,890	$	4,250
	Zhongsheng Group Holdings, Ltd. (Specialty retail)		526,000		3,710
					181,284
	India—19.3%
	Aarti Industries, Ltd. (Chemicals)		122,737		1,083
*	Affle India, Ltd. (Media)		88,205		1,190
*	Amber Enterprises India, Ltd. (Household durables)		34,521		978
*	APL Apollo Tubes, Ltd. (Metals & mining)		204,389		2,192
	Apollo Hospitals Enterprise, Ltd. (Health care providers & services)		83,015		3,857
	Asian Paints, Ltd. (Chemicals)		54,959		1,866
	Astral, Ltd. (Building products)		51,426		1,076
	Atul, Ltd. (Chemicals)		8,098		820
	Bajaj Finance, Ltd. (Consumer finance)		77,451		5,288
	Bata India, Ltd. (Textiles, apparel & luxury goods)		84,498		1,779
*	Clean Science & Technology, Ltd. (Chemicals)		28,157		533
	Computer Age Management Services, Ltd. (IT services)		62,374		1,784
	Crompton Greaves Consumer Electricals, Ltd. (Household durables)		246,091		1,063
	Dabur India, Ltd. (Personal products)		289,397		1,817
	Dixon Technologies India, Ltd. (Household durables)		23,178		1,046
	Escorts Kubota, Ltd. (Machinery)		69,597		1,273
*	Godrej Properties, Ltd. (Real estate management & development)		71,119		1,063
	Havells India, Ltd. (Electrical equipment)		133,164		1,838
	HDFC Bank, Ltd. (Banks)		664,063		11,301
	Hindustan Unilever, Ltd. (Personal products)		75,075		2,110
	Housing Development Finance Corporation, Ltd. (Thrifts & mortgage finance)		275,829		7,524
	Indian Energy Exchange Ltd. (Capital markets)		321,861		646
	Info Edge India, Ltd. (Interactive Media & Services)		16,298		782
	Infosys, Ltd. (IT services)		304,489		5,627
	JK Cement, Ltd. (Construction materials)		25,850		688
	Jubilant Foodworks, Ltd. (Hotels, restaurants & leisure)		124,927		811
	Kajaria Ceramics, Ltd. (Building products)		89,677		1,074
	KEI Industries, Ltd. (Electrical equipment)		155,753		2,269

See accompanying Notes to Financial Statements.

June 30, 2022

William Blair Funds

Emerging Markets Growth Fund

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)



	Issuer	Shares		Value

	Common Stocks—(continued)

	Emerging Asia—(continued)
	India—(continued)
	Minda Industries, Ltd. (Auto components)		191,524	$	2,241
	Nestle India, Ltd. (Food products)		9,008		1,974
	Pidilite Industries, Ltd. (Chemicals)		60,503		1,600
	Polycab India, Ltd. (Electrical equipment)		38,619		1,079
	Reliance Industries, Ltd. (Oil, gas & consumable fuels)		1,112,663		36,477
	SRF, Ltd. (Chemicals)		194,032		5,523
	Sun Pharmaceutical Industries, Ltd. (Pharmaceuticals)		244,639		2,574
	Tata Consultancy Services, Ltd. (IT services)		174,515		7,214
	Tata Consumer Products, Ltd. (Food products)		243,645		2,174
	Tata Elxsi, Ltd. (Software)		35,489		3,640
	Trent, Ltd. (Multiline retail)		166,863		2,296
	UPL, Ltd. (Chemicals)		531,989		4,268
	Varun Beverages, Ltd. (Beverages)		390,203		3,903
	Voltas, Ltd. (Construction & engineering)		151,903		1,867
					140,208
	Indonesia—5.7%
	Bank Central Asia Tbk PT (Banks)		40,520,095		19,720
	Bank Rakyat Indonesia Persero Tbk PT (Banks)		50,617,051		14,100
	PT Astra International Tbk (Automobiles)		9,781,600		4,350
	PT United Tractors Tbk (Oil, gas & consumable fuels)		1,711,100		3,262
					41,432
	Philippines—0.9%
	BDO Unibank, Inc. (Banks)		1,717,780		3,452
	International Container Terminal Services, Inc. (Transportation infrastructure)		1,045,980		3,500
					6,952
	South Korea—5.0%
	Chunbo Co., Ltd. (Chemicals)		1,882		302
	JYP Entertainment Corporation (Entertainment)		72,836		2,707
	Kakao Corporation (Interactive Media & Services)		34,840		1,876
	LEENO Industrial, Inc. (Semiconductors & semiconductor equipment)		16,247		1,627
	NAVER Corporation (Interactive Media & Services)		9,990		1,846
*	Samsung Biologics Co., Ltd. (Life sciences tools & services)		6,929		4,216
	Samsung Electronics Co., Ltd. (Technology hardware, storage & peripherals)		488,705		21,454
	Samsung SDI Co., Ltd. (Electronic equipment, instruments & components)		5,097		2,088
					36,116



Issuer	Shares		Value

Common Stocks—(continued)

Emerging Asia—(continued)
Taiwan—17.0%
Accton Technology Corporation (Communications equipment)		122,000	$	979
Advantech Co., Ltd. (Technology hardware, storage & peripherals)		330,766		3,849
Airtac International Group (Machinery)		157,852		5,261
ASMedia Technology, Inc. (Semiconductors & semiconductor equipment)		41,000		1,537
ASPEED Technology, Inc. (Semiconductors & semiconductor equipment)		36,300		2,320
Chailease Holding Co., Ltd. (Diversified financial services)		1,567,190		10,990
Chroma ATE, Inc. (Electronic equipment, instruments & components)		371,000		1,909
E Ink Holdings, Inc. (Electronic equipment, instruments & components)		321,000		2,035
E.Sun Financial Holding Co., Ltd. (Banks)		12,342,646		12,038
Elite Material Co., Ltd. (Electronic equipment, instruments & components)		271,000		1,627
eMemory Technology, Inc. (Semiconductors & semiconductor equipment)		46,000		1,601
Feng TAY Enterprise Co., Ltd. (Textiles, apparel & luxury goods)		409,000		2,414
Lotes Co., Ltd. (Electronic equipment, instruments & components)		112,459		2,527
MediaTek, Inc. (Semiconductors & semiconductor equipment)		233,000		5,101
Parade Technologies, Ltd. (Semiconductors & semiconductor equipment)		62,000		2,398
Realtek Semiconductor Corporation (Semiconductors & semiconductor equipment)		88,000		1,074
Sinbon Electronics Co., Ltd. (Electronic equipment, instruments & components)		370,000		3,161
Taiwan Semiconductor Manufacturing Co., Ltd.—ADR (Semiconductors & semiconductor equipment)		509,241		41,630
Taiwan Semiconductor Manufacturing Co., Ltd. (Semiconductors & semiconductor equipment)		884,000		14,152
Voltronic Power Technology Corporation (Electrical equipment)		100,586		4,888
Wiwynn Corporation (Technology hardware, storage & peripherals)		68,000		1,594
				123,085
Thailand—2.3%
Bangkok Dusit Medical Services PCL Class “F” (Health care providers & services)		6,409,400		4,532
Bumrungrad Hospital PCL (Health care providers & services)		534,100		2,704
Com7 PCL Class “F” (Specialty retail)		1,568,900		1,331
Kasikornbank PCL (Banks)		1,851,600		7,882
				16,449

See accompanying Notes to Financial Statements.

Semiannual Report

June 30, 2022

Emerging Markets Growth Fund

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)



	Issuer	Shares		Value

	Common Stocks—(continued)

	Emerging Asia—(continued)
	Vietnam—0.2%
	Hoa Phat Group JSC (Metals & mining)		1,372,541	$	1,316

	Emerging Latin America—10.2%
	Argentina—1.4%
*	Globant S.A. (IT services)†		31,662		5,509
*	MercadoLibre, Inc. (Internet & direct marketing retail)		7,114		4,531
					10,040
	Brazil—4.7%
	B3 S.A. - Brasil Bolsa Balcao (Capital markets)		1,332,200		2,790
	Itau Unibanco Holding S.A.—ADR (Banks)		3,070,003		13,140
	Localiza Rent a Car S.A. (Road & rail)		370,000		3,705
	Patria Investments, Ltd. Class “A” (Capital markets)†		172,473		2,280
	Raia Drogasil S.A. (Food & staples retailing)		871,400		3,197
	TOTVS S.A. (Software)		770,900		3,426
	Vinci Partners Investments, Ltd. Class “A” (Capital markets)†		195,411		2,091
	WEG S.A. (Electrical equipment)		717,741		3,627
					34,256
	Chile—0.2%
	Sociedad Quimica y Minera de Chile S.A.—ADR (Chemicals)		18,802		1,571
	Mexico—2.2%
	Wal-Mart de Mexico S.A.B. de C.V. (Food & staples retailing)		4,500,400		15,487
	Peru—1.3%
	Credicorp, Ltd. (Banks)†		79,980		9,590
	Uruguay—0.4%
*	Dlocal, Ltd. (IT services)†		116,452		3,057

	Emerging Europe, Mid-East, Africa—8.6%
	Kenya—0.1%
	Safaricom plc (Wireless telecommunication services)		3,332,094		704
	Poland—0.4%
*	Dino Polska S.A. (Food & staples retailing)		41,523		2,956
	Qatar—1.9%
	Qatar Islamic Bank S.A.Q. (Banks)		690,485		4,218
	Qatar National Bank QPSC (Banks)		1,722,418		9,450
					13,668
	Saudi Arabia—0.4%
	Dr Sulaiman Al Habib Medical Services Group Co. (Health care providers & services)		46,927		2,424

Issuer	Shares or Principal Amount		Value

Common Stocks—(continued)

Emerging Europe, Mid-East, Africa—(continued)
South Africa—4.4%
Capitec Bank Holdings, Ltd. (Banks)		138,709	$	16,900
Clicks Group, Ltd. (Food & staples retailing)		301,246		5,061
Shoprite Holdings, Ltd. (Food & staples retailing)		407,968		4,962
The Bidvest Group, Ltd. (Industrial conglomerates)		404,155		5,206
				32,129
United Arab Emirates—1.4%
First Abu Dhabi Bank PJSC (Banks)		1,988,775		10,168
Total Common Stocks—94.2% (cost $671,409)				682,892

Repurchase Agreement
Fixed Income Clearing Corporation, 0.240% dated 6/30/22, due 7/1/22, repurchase price $14,469, collateralized by U.S. Treasury Note, 1.625%, due 05/15/31, valued at $14,758	$	14,469		14,469
Total Repurchase Agreement—2.0% (cost $14,469)				14,469
Total Investments—96.2% (cost $685,878)				697,361
Cash and other assets, less liabilities—3.8%				27,896
Net assets—100.0%			$	725,257

ADR = American Depository Receipt

* = Non-income producing security

† = U.S. listed foreign security

See accompanying Notes to Financial Statements.

June 30, 2022

William Blair Funds

Emerging Markets Growth Fund

Portfolio of Investments, June 30, 2022 (unaudited)

At June 30, 2022, the Fund’s Portfolio of Investments includes the following industry categories (as a percentage of long-term investments):

Financials	28.7	%
Information Technology	22.5	%
Consumer Discretionary	10.7	%
Consumer Staples	10.7	%
Industrials	8.3	%
Energy	5.8	%
Communication Services	5.7	%
Health Care	3.5	%
Materials	3.5	%
Utilities	0.4	%
Real Estate	0.2	%
Total	100.0	%

At June 30, 2022, the Fund’s Portfolio of Investments includes the following currency categories (as a percentage of long-term investments):

Indian Rupee	20.5	%
Chinese Yuan Renminbi	13.9	%
New Taiwan Dollar	12.3	%
Hong Kong Dollar	12.3	%
U.S. Dollar	12.2	%
Indonesian Rupiah	6.1	%
South Korean Won	5.3	%
South African Rand	5.1	%
Brazilian Real	2.4	%
Thai Baht	2.4	%
Mexican Peso	2.3	%
Qatari Rial	2.0	%
UAE Dirham	1.5	%
Philippine Peso	1.0	%
All Other Currencies	0.7	%
Total	100.0	%

See accompanying Notes to Financial Statements.

Semiannual Report

June 30, 2022

	Emerging Markets Small Cap Growth Fund

	The Emerging Markets Small Cap Growth Fund seeks long-term capital appreciation.

	AN OVERVIEW FROM THE PORTFOLIO MANAGERS

Todd M. McClone, CFA Casey K. Preyss, CFA D.J. Neiman, CFA	The William Blair Emerging Markets Small Cap Growth Fund (Class N shares) (the “Fund”) posted a 27.08% decrease, net of fees, for the six months ended June 30, 2022. By comparison, the Fund’s benchmark index, the MSCI Emerging Markets Small Cap Index (net) (the “Index”), decreased 20.03%. Six-month underperformance versus the Index was driven by a negative stock selection effect within Consumer Discretionary, Materials, Industrials, and Information Technology. Within Consumer Discretionary, F&F New and Momo.com were the most notable detractors. F&F New is a Korean fashion brand with a strong and diverse brand portfolio including Major League Baseball and Discovery and a strong presence in China. Weaker sales amid COVID lockdowns and deteriorated consumer sentiment drove the share price underperformance. Momo.com is a Taiwanese e-commerce services company offering TV shopping and internet shopping services. A key beneficiary of COVID lockdowns, e-commerce growth in Taiwan has decelerated from 35% year-over-year to 17% year-over-year amid the country’s post-lockdown reopening. We believe that increased spending will be needed to secure growth, negatively impacting margins. Hansol Chemical hampered relative results in the Materials sector. The company supplies a mix of components and consumables to large tech hardware customers. The company delivered weaker-than-expected results against cost pressure from higher oil and liquid natural gas prices, the fall in NB-latex price, and overall weaker end-market demand. Within Industrials, HeadHunter, a Russian online job recruitment platform, fell along with Russian equities on the back of the country’s invasion of Ukraine. Information Technology was dragged down by ASPEED Technology and Parade Technologies. Both semiconductor companies’ stock declines were primarily driven by the decelerating semiconductor cycle and softer demand outlook. Partially offsetting these negative effects was the positive stock selection effect within Consumer Staples coupled with the overweighting allocation to Consumer Staples and underweighting allocation to Health Care. Within the Consumer Staples sector, Varun Beverages, Proya Cosmetics, and Yunnan Botanee Bio-tech were the most notable contributors to relative performance amid the strong stock performance in the second quarter. Please refer to the Global Markets Review and Outlook relating to the Fund beginning on page 32.

June 30, 2022

William Blair Funds

Emerging Markets Small Cap Growth Fund

Performance Highlights (Unaudited)

Average Annual Total Returns through 6/30/2022
	Year to Date			1 Year			3 Year			5 Year			10 Year			Since Inception(a)
Class N		(27.08	)%		(26.00	)%		7.10	%		3.71	%		7.10	%		—	%
Class I		(26.99	)		(25.83	)		7.36			3.97			7.39			—
Class R6		(26.97	)		(25.78	)		7.42			4.04			—			6.21
MSCI Emerging Markets Small Cap Index (net)		(20.03	)		(20.72	)		5.78			3.48			4.31			3.26

(a)	Since inception is for the period from December 20, 2012 (Commencement of Operations) to June 30, 2022.

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.

Sector Diversification (Unaudited)

The sector diversification shown is based on the total long-term securities.

Semiannual Report

June 30, 2022

Emerging Markets Small Cap Growth Fund

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)



	Issuer	Shares		Value

	Common Stocks

	Emerging Asia—70.6%
	Cambodia—0.5%
*	NagaCorp, Ltd. (Hotels, restaurants & leisure)		2,068,000	$	1,692
	China—20.3%
	By-health Co., Ltd. Class “A” (Personal products)		840,776		2,719
	Centre Testing International Group Co., Ltd. Class “A” (Professional services)		1,125,305		3,902
	Chacha Food Co., Ltd. Class “A” (Food products)		709,871		6,037
	China Meidong Auto Holdings, Ltd. (Specialty retail)		1,150,000		3,620
	CIFI Ever Sunshine Services Group, Ltd. (Real estate management & development)		2,238,000		2,852
	Ecovacs Robotics Co., Ltd. Class “A” (Household durables)		162,000		2,950
	Estun Automation Co., Ltd. Class “A” (Machinery)		405,000		1,482
	Huaneng Lancang River Hydropower, Inc. Class “A” (Independent power & renewable electricity producers)		2,816,700		2,941
	Jiumaojiu International Holdings, Ltd. (Hotels, restaurants & leisure)		2,679,000		7,118
	Longshine Technology Group Co., Ltd. Class “A” (Software)		725,400		2,730
	Proya Cosmetics Co., Ltd. Class “A” (Personal products)		494,349		12,198
	Suzhou Maxwell Technologies Co., Ltd. Class “A” (Electrical equipment)		119,923		8,794
	Yunnan Botanee Bio-Technology Group Co., Ltd. Class “A” (Personal products)		236,700		7,691
	Zhongsheng Group Holdings, Ltd. (Specialty retail)		468,500		3,305
					68,339
	India—28.0%
	Aarti Industries, Ltd. (Chemicals)		60,428		533
*	Aavas Financiers, Ltd. (Thrifts & mortgage finance)		101,578		2,614
*	Affle India, Ltd. (Media)		193,791		2,613
*	Amber Enterprises India, Ltd. (Household durables)		44,384		1,258
*	APL Apollo Tubes, Ltd. (Metals & mining)		237,719		2,550
	Apollo Hospitals Enterprise, Ltd. (Health care providers & services)		28,305		1,315
	Astral Poly Technik, Ltd. (Building products)		119,535		2,500
	Atul, Ltd. (Chemicals)		14,213		1,440
*	AU Small Finance Bank Ltd. (Banks)		814,914		6,099
	Balkrishna Industries, Ltd. (Auto components)		22,071		603
	Bata India, Ltd. (Textiles, apparel & luxury goods)		58,546		1,233



	Issuer	Shares		Value

	Common Stocks—(continued)

	Emerging Asia—(continued)
	India—(continued)
	Carborundum Universal, Ltd. (Chemicals)		218,443	$	1,977
	Central Depository Services India, Ltd. (Capital markets)		124,234		1,751
	Century Plyboards India, Ltd. (Paper & forest products)		264,281		1,758
	Cholamandalam Investment and Finance Co., Ltd. (Consumer finance)		534,858		4,203
*	Clean Science & Technology, Ltd. (Chemicals)		70,747		1,339
	Computer Age Management Services, Ltd. (IT services)		44,510		1,273
	Dixon Technologies India, Ltd. (Household durables)		45,239		2,041
	Fine Organic Industries, Ltd. (Chemicals)		39,174		2,374
*	Godrej Properties, Ltd. (Real estate management & development)		50,921		761
	Havells India, Ltd. (Electrical equipment)		24,740		342
	KEI Industries, Ltd. (Electrical equipment)		353,447		5,148
	Laurus Labs, Ltd. (Pharmaceuticals)		129,484		762
*	Max Healthcare Institute, Ltd. (Health care providers & services)		376,571		1,748
	Minda Industries, Ltd. (Auto components)		131,184		1,535
	Navin Fluorine International, Ltd. (Chemicals)		24,544		1,138
*	Oberoi Realty, Ltd. (Real estate management & development)		228,910		2,116
	PI Industries, Ltd. (Chemicals)		13,256		427
	Pidilite Industries, Ltd. (Chemicals)		23,138		612
	Polycab India, Ltd. (Electrical equipment)		112,009		3,130
	Radico Khaitan, Ltd. (Beverages)		142,402		1,572
	Relaxo Footwears, Ltd. (Textiles, apparel & luxury goods)		70,682		866
	SRF, Ltd. (Chemicals)		180,811		5,147
	Sundram Fasteners, Ltd. (Auto components)		74,156		675
	Trent, Ltd. (Multiline retail)		471,387		6,486
	Tube Investments of India, Ltd. (Auto components)		165,697		3,881
*	V-Mart Retail, Ltd. (Multiline retail)		30,357		957
	Varun Beverages, Ltd. (Beverages)		1,198,275		11,987
	Vinati Organics, Ltd. (Chemicals)		91,621		2,291
	VIP Industries, Ltd. (Textiles, apparel & luxury goods)		397,672		3,144
					94,199
	Indonesia—4.0%
	PT Bank Negara Indonesia Persero Tbk (Banks)		11,031,900		5,813
	PT Bank Tabungan Pensiunan Nasional Syariah Tbk (Banks)		27,331,100		5,174
	PT United Tractors Tbk (Oil, gas & consumable fuels)		1,251,100		2,385
					13,372

See accompanying Notes to Financial Statements.

June 30, 2022

William Blair Funds

Emerging Markets Small Cap Growth Fund

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)



	Issuer	Shares		Value

	Common Stocks—(continued)

	Emerging Asia—(continued)
	Malaysia—0.9%
	MR DIY Group M Bhd (Specialty retail)		4,973,400	$	2,336
	UWC BHD (Machinery)		1,150,200		858
					3,194
	Philippines—3.6%
	International Container Terminal Services, Inc. (Transportation infrastructure)		1,979,350		6,624
*	TDCX, Inc.—ADR (IT services)		123,354		1,141
	Wilcon Depot, Inc. (Specialty retail)		9,752,700		4,221
					11,986
	South Korea—2.3%
	Chunbo Co., Ltd. (Chemicals)		11,646		1,866
	F&F Co., Ltd. (Textiles, apparel & luxury goods)		37,649		3,900
	LEENO Industrial, Inc. (Semiconductors & semiconductor equipment)		19,723		1,975
	NICE Information Service Co., Ltd. (Professional services)		11,787		131
					7,872
	Taiwan—7.2%
	Airtac International Group (Machinery)		131,158		4,371
	ASMedia Technology, Inc. (Semiconductors & semiconductor equipment)		12,000		450
	ASPEED Technology, Inc. (Semiconductors & semiconductor equipment)		20,900		1,336
	Elite Material Co., Ltd. (Electronic equipment, instruments & components)		96,000		576
	eMemory Technology, Inc. (Semiconductors & semiconductor equipment)		8,000		279
	Lotes Co., Ltd. (Electronic equipment, instruments & components)		265,831		5,972
	Parade Technologies, Ltd. (Semiconductors & semiconductor equipment)		34,000		1,315
	Sinbon Electronics Co., Ltd. (Electronic equipment, instruments & components)		680,000		5,809
	Voltronic Power Technology Corporation (Electrical equipment)		88,507		4,301
					24,409
	Thailand—3.8%
	Bumrungrad Hospital PCL (Health care providers & services)		1,479,900		7,493
	Carabao Group PCL Class “F” (Beverages)		108,500		327
	Com7 PCL Class “F” (Specialty retail)		5,671,100		4,812
	Muangthai Capital PCL (Consumer finance)		269,200		325
					12,957
	Vietnam—0.0%
	Hoa Phat Group JSC (Metals & mining)		26		—	^(a)



	Issuer	Shares		Value

	Common Stocks—(continued)

	Emerging Latin America—15.2%
	Brazil—8.4%
	Arezzo Industria e Comercio S.A. (Textiles, apparel & luxury goods)		440,100	$	5,849
*	Azul S.A.—ADR (Airlines)		75,858		539
*	CI&T, Inc. Class “A” (IT services)†		61,250		618
	Cyrela Brazil Realty S.A. Empreendimentos e Participacoes (Household durables)		1,090,300		2,463
	Grupo SBF S.A. (Specialty retail)		1,070,600		3,872
*	Infracommerce CXAAS S.A. (IT services)		811,200		694
*	Locaweb Servicos de Internet S.A. (IT services)		1,549,578		1,664
	Lojas Quero Quero S (Specialty retail)		1,092,100		1,189
	Pet Center Comercio e Participacoes S.A. (Specialty retail)		1,858,406		3,526
*	Sequoia Logistica e Transportes S.A. (Air freight & logistics)		1,114,500		1,165
	TOTVS S.A. (Software)		1,478,200		6,570
					28,149
	Mexico—5.9%
	Banco del Bajio S.A. (Banks)		2,225,800		4,479
	Grupo Aeroportuario del Centro Norte S.A.B. de C.V. (Transportation infrastructure)		820,199		5,240
	Grupo Aeroportuario del Sureste S.A.B. de C.V. Class “B” (Transportation infrastructure)		437,355		8,621
	Regional S.A.B. de C.V. (Banks)		324,100		1,539
					19,879
	Uruguay—0.9%
*	Dlocal, Ltd. (IT services)†		116,849		3,067

	Emerging Europe, Mid-East, Africa—12.1%
	Greece—1.4%
	Terna Energy S.A. (Independent power & renewable electricity producers)		264,752		4,761
	Kazakhstan—0.6%
	Kaspi.KZ JSC—GDR (Consumer finance)		40,954		1,864
	Lithuania—0.3%
*	Baltic Classifieds Group plc (Interactive Media & Services)		699,798		1,111
	Poland—2.5%
*	Dino Polska S.A. (Food & staples retailing)		98,256		6,994
	ING Bank Slaski S.A. (Banks)		33,921		1,290
					8,284
	Romania—0.9%
	Banca Transilvania S.A. (Banks)		6,542,961		3,092

See accompanying Notes to Financial Statements.

Semiannual Report

June 30, 2022

Emerging Markets Small Cap Growth Fund

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)

Issuer	Shares or Principal Amount		Value

Common Stocks—(continued)

Emerging Europe, Mid-East, Africa—(continued)
Saudi Arabia—2.6%
Dr Sulaiman Al Habib Medical Services Group Co. (Health care providers & services)		105,509	$	5,450
Mouwasat Medical Services Co. (Health care providers & services)		58,706		3,332
				8,782
South Africa—3.1%
Clicks Group, Ltd. (Food & staples retailing)		62,820		1,055
The Bidvest Group, Ltd. (Industrial conglomerates)		271,585		3,499
Transaction Capital, Ltd. (Consumer finance)		2,616,412		5,904
				10,458
United Arab Emirates—0.7%
Abu Dhabi National Oil Co. for Distribution PJSC (Specialty retail)		2,089,223		2,400
Total Common Stocks—97.9% (cost $362,227)				329,867

Repurchase Agreement
Fixed Income Clearing Corporation, 0.240% dated 6/30/22, due 7/1/22, repurchase price $2,701, collateralized by U.S. Treasury Note, 1.625%, due 05/15/31, valued at $2,755	$	2,701		2,701
Total Repurchase Agreement—0.8% (cost $2,701)				2,701
Total Investments—98.7% (cost $364,928)				332,568
Cash and other assets, less liabilities—1.3%				4,399
Net assets—100.0%			$	336,967

ADR = American Depository Receipt

GDR = Global Depository Receipt

* = Non-income producing security

(a) Amount is less than the minimum amount disclosed.

† = U.S. listed foreign security

At June 30, 2022, the Fund’s Portfolio of Investments includes the following industry categories (as a percentage of long-term investments):

Consumer Discretionary	23.1	%
Industrials	18.4	%
Consumer Staples	15.3	%
Financials	13.4	%
Information Technology	10.8	%
Materials	7.1	%
Health Care	6.1	%
Utilities	2.3	%
Real Estate	1.7	%
Communication Services	1.1	%
Energy	0.7	%
Total	100.0	%

At June 30, 2022, the Fund’s Portfolio of Investments includes the following currency categories (as a percentage of long-term investments):

Indian Rupee	28.6	%
Chinese Yuan Renminbi	15.6	%
Brazilian Real	8.2	%
New Taiwan Dollar	7.4	%
Mexican Peso	6.0	%
South African Rand	5.8	%
Hong Kong Dollar	5.6	%
Indonesian Rupiah	4.1	%
Thai Baht	3.9	%
Philippine Peso	3.3	%
Polish Zloty	2.5	%
South Korean Won	2.4	%
U.S. Dollar	2.2	%
Euro	1.4	%
All Other Currencies	3.0	%
Total	100.0	%

See accompanying Notes to Financial Statements

June 30, 2022

William Blair Funds

	China Growth Fund

	The China Growth Fund seeks long-term capital appreciation.

	AN OVERVIEW FROM THE PORTFOLIO MANAGERS

Vivian Lin Thurston, CFA Casey K. Preyss, CFA	The William Blair China Growth Fund (Class I shares) (the “Fund”) posted a 18.72% decrease, net of fees, for the six months ended June 30, 2022. By comparison, the Fund’s benchmark index, the MSCI China All Shares Index (net) (the “Index”), decreased 11.77%. Six-month underperformance versus the Index was primarily driven by style headwinds amid strong outperformance of low-valuation stocks. From a sector perspective, the portfolio’s lack of exposure to Energy and overweight to Information Technology were particularly detrimental. Style headwinds also drove negative stock selection across sectors, which was particularly acute in the Information Technology and Industrials sectors. Underperformance within Information Technology was driven by the portfolio’s exposure to technology hardware, particularly semiconductor manufacturers Silergy and Will Semiconductor. Silergy is the market leader in China for analog semiconductors and remains a beneficiary of structural growth in demand from automobile, cloud, and 5G end-markets as well as a localization trend. Will Semiconductor produces image sensors for smartphones, automotive, and other uses. Will Semiconductor is taking market share at the lower end of the technology spectrum as competitors on the leading edge reduce capacity. The stock price for the industry weakened against a deteriorated demand backdrop and rising costs. Underperformance in Industrials was primarily driven by exposure to Contemporary Amperex Technology Ltd. (CATL). CATL manufactures batteries primarily for use in electric vehicles (“EV”), with a small amount used by utility companies and other large power users for stationary power storage. There are significant tailwinds for EV adoption in China and we believe CATL is well positioned to exploit the opportunity given its status as a domestic champion. Performance year-to-date has been pressured by increased costs for the raw materials used in battery production and headwinds for long-duration growth companies trading at high near-term valuations. Partially offsetting those effects was an overweight in Consumer Staples anchored by Kweichow Moutai. Kweichow Moutai is the leader in the Baijiu industry, with the highest brand equity and strongest heritage. In 2022, Kweichow Moutai introduced new products, established the iMoutai e-commerce platform, expanded the distribution channel, and adopted a more proactive marketing strategy. This, combined with recovery in restocking and price increases, drove the share price higher. Please refer to the Global Markets Review and Outlook relating to the Fund beginning on page 32.

Semiannual Report

June 30, 2022

China Growth Fund

Performance Highlights (Unaudited)

Average Annual Total Returns through 6/30/2022

	Year to Date			Since Inception(a)
Class I		(18.72	)%		(22.30	)%
Class R6		(18.72	)		(22.30	)
MSCI China All Shares Index (net)		(11.77	)		(14.60	)


(a)	Since inception is for the period from August 27, 2021 (Commencement of Operations) to June 30, 2022.

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.

Sector Diversification (Unaudited)

The sector diversification shown is based on the total long-term securities.

June 30, 2022

William Blair Funds

China Growth Fund

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)



	Issuer	Shares		Value

	Common Stocks

	Emerging Asia—95.8%
	China—94.9%
	Aier Eye Hospital Group Co., Ltd. Class “A” (Health care providers & services)		13,268	$	89
*	Alibaba Group Holding, Ltd. (Internet & direct marketing retail)		13,600		194
	Bank of Chengdu Co., Ltd. Class “A” (Banks)		13,300		33
	Bank of Ningbo Co., Ltd. Class “A�� (Banks)		18,190		97
	Beijing Kingsoft Office Software, Inc. Class “A” (Software)		1,522		45
	China Meidong Auto Holdings, Ltd. (Specialty retail)		8,000		25
	China Merchants Bank Co., Ltd. Class “H” (Banks)		21,500		144
	China Tourism Group Duty Free Corporation, Ltd. Class “A” (Specialty retail)		5,400		188
	Chongqing Zhifei Biological Products Co., Ltd. Class “A” (Biotechnology)		1,200		20
	Contemporary Amperex Technology Co., Ltd. Class “A” (Electrical equipment)		1,400		112
	East Money Information Co., Ltd. Class “A” (Capital markets)		25,320		96
	Ecovacs Robotics Co., Ltd. Class “A” (Household durables)		2,300		42
	Foshan Haitian Flavouring & Food Co., Ltd. Class “A” (Food products)		11,210		151
	Hangzhou Tigermed Consulting Co., Ltd. Class “A” (Life sciences tools & services)		2,217		38
	Inner Mongolia Yili Industrial Group Co., Ltd. Class “A” (Food products)		10,300		60
	JD.com, Inc. Class “A” (Internet & direct marketing retail)		4,252		137
	Jiangsu Hengli Hydraulic Co., Ltd. Class “A” (Machinery)		4,900		45
	Jiumaojiu International Holdings, Ltd. (Hotels, restaurants & leisure)		14,000		37
	Juewei Food Co., Ltd. Class “A” (Food products)		3,600		31
	Kweichow Moutai Co., Ltd. Class “A” (Beverages)		700		214
	Li Ning Co., Ltd. (Textiles, apparel & luxury goods)		7,000		65
	Maxscend Microelectronics Co., Ltd. Class “A” (Electronic equipment, instruments & components)		1,600		32
*	Meituan Class “B” (Internet & direct marketing retail)		4,100		101
	NAURA Technology Group Co., Ltd. Class “A” (Semiconductors & semiconductor equipment)		1,400		58
	NetEase, Inc. (Entertainment)		5,600		103
	Ovctek China, Inc. Class “A” (Health care equipment & supplies)		5,200		44



	Issuer	Shares		Value

	Common Stocks—(continued)

	Emerging Asia—(continued)
	China—(continued)
	Proya Cosmetics Co., Ltd. Class “A” (Personal products)		2,420	$	60
	SG Micro Corporation Class “A” (Semiconductors & semiconductor equipment)		1,950		53
	Shanghai M&G Stationery, Inc. Class “A” (Commercial services & supplies)		3,600		30
	Shenzhen Inovance Technology Co., Ltd. Class “A” (Machinery)		7,100		70
	Shenzhen Mindray Bio-Medical Electronics Co., Ltd. Class “A” (Health care equipment & supplies)		600		28
	Shenzhou International Group Holdings, Ltd. (Textiles, apparel & luxury goods)		2,000		24
	Silergy Corporation (Semiconductors & semiconductor equipment)		1,000		81
	Suzhou Maxwell Technologies Co., Ltd. Class “A” (Electrical equipment)		820		60
	Tencent Holdings, Ltd. (Interactive Media & Services)		6,500		294
*	Topchoice Medical Corporation Class “A” (Health care providers & services)		1,500		39
	Will Semiconductor Co., Ltd. Shanghai Class “A” (Semiconductors & semiconductor equipment)		1,600		41
	Wuliangye Yibin Co., Ltd. Class “A” (Beverages)		3,000		91
	WuXi AppTec Co., Ltd. Class “H” (Life sciences tools & services)		4,100		55
*	Wuxi Biologics Cayman, Inc. (Life sciences tools & services)		5,500		50
	Wuxi Lead Intelligent Equipment Co., Ltd. Class “A” (Machinery)		4,300		41
	Yonyou Network Technology Co., Ltd. Class “A” (Software)		9,800		32
	Yunnan Botanee Bio-Technology Group Co., Ltd. Class “A” (Personal products)		1,400		45
	Yunnan Energy New Material Co., Ltd. Class “A” (Chemicals)		1,600		60
	Zhangzhou Pientzehuang Pharmaceutical Co., Ltd. Class “A” (Pharmaceuticals)		1,500		80
	Zhejiang Jingsheng Mechanical & Electrical Co., Ltd. Class “A” (Semiconductors & semiconductor equipment)		3,800		38
	Zhongsheng Group Holdings, Ltd. (Specialty retail)		6,500		46
					3,519
	Taiwan—0.9%
*	Airtac International Group (Machinery)		1,000		33

See accompanying Notes to Financial Statements.

Semiannual Report

June 30, 2022

China Growth Fund

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)



Issuer	Shares		Value

Common Stocks—(continued)

Asia—3.3%
Hong Kong—3.3%
AIA Group, Ltd. (Insurance)		7,800	$	85
Hong Kong Exchanges and Clearing, Ltd. (Capital markets)		800		39
				124
Total Common Stocks—99.1% (cost $4,353)				3,676
Total Investments—99.1% (cost $4,353)				3,676
Cash and other assets, less liabilities—0.9%				34
Net assets—100.0%			$	3,710

* = Non-income producing security

At June 30, 2022, the Fund’s Portfolio of Investments includes the following industry categories (as a percentage of long-term investments):

Consumer Discretionary		23.5%
Consumer Staples		17.7%
Financials		13.4%
Health Care		12.1%
Communication Services		10.8%
Industrials		10.6%
Information Technology		10.3%
Materials		1.6%
Total		100.0%

At June 30, 2022, the Fund’s Portfolio of Investments includes the following currency categories (as a percentage of long-term investments):

Chinese Yuan Renminbi		58.8%
Hong Kong Dollar		38.1%
New Taiwan Dollar		3.1%
Total		100.0%

See accompanying Notes to Financial Statements.

June 30, 2022

William Blair Funds

Emerging Markets Debt Market Review and Outlook

Emerging Markets (EM) Debt faced strong headwinds during the first half of the year as the Russia-Ukraine conflict created significant uncertainties for global investors. Moreover, a negative combination of factors—including rising inflationary pressures, the continuation of global supply-chain disruptions, ongoing monetary policy normalization, higher global rates, and rising economic growth risks—all weighed on investor sentiment. This led to outflows from EM Debt portfolios, widening EM Debt credit spreads, higher EM local bond yields, and to a lesser extent, weaker EM currencies—all amid high levels of market volatility.

In this environment, the credit spread of the J.P. Morgan Emerging Markets Bond Index Global Diversified (EMBIGD) widened by 175 basis points (bps) to 542 bps, producing a negative total return of 20.31% during the first half of 2022. There was broad weakness in credits across the investable universe with less than 140 bps of performance separating the returns of the high yield and investment grade segments. Regionally, the most negative, and direct, impact of the war in Ukraine was felt in the performance of the CEE-region, and later, high-yield, high-beta countries took the lead in the sell-off during the second quarter. Countries in the Middle East led returns in the first half by losing the least, followed by those in Asia and Latin America.

While the near-term outlook for global economic growth remains clouded by a combination of recession fears, still-strong inflationary pressures, and prospects of faster monetary policy tightening globally, we now expect an improvement in investor sentiment during the summer and have recently upgraded our medium-term views of EM Debt.

We expect inflationary pressures to start to dissipate soon, particularly in the United States, where a combination of stabilizing energy and food prices, improving global supply chain dynamics, a strong U.S. dollar, and softening economic conditions should drive inflation lower in the coming months. Declining inflation should allow for a less aggressive Federal Reserve hiking cycle, in turn leading to lower U.S. Treasury yields and reduced risks of an economic recession.

In EMs, we believe the fundamental backdrop remains constructive despite less favorable near-term fiscal and debt dynamics driven by softer economic conditions. External accounts should remain well supported by high commodity prices in most countries. While there are pockets of fundamental weaknesses, especially among some energy- and food- importing countries, overall, we believe the asset class is well positioned to withstand a period of weaker global growth. It is important to note that central banks in emerging markets have been preemptively hiking interest rates, and real interest-rate levels are significantly higher than they are in advanced economies, supporting local currencies and adding to the positive fundamental landscape.

We believe EM Debt valuations remain compelling on both an absolute and relative basis, with spreads remaining wider than their historical levels. EM sovereign high-yield spreads appear compelling, particularly relative to U.S. high-yield levels. In the distressed credit space, which now represents approximately 14% of the EMBIGD, we believe current prices are overestimating probabilities of credit events and underestimating potential restructuring and recovery values. Overall, we believe current valuations overcompensate investors for credit risks and volatility, and EM debt currently offers value to investors with a medium-to long-term horizon and a willingness to tolerate a period of higher volatility.

Notwithstanding the foregoing, we believe volatility should remain elevated in the near term because of still-challenging technical market conditions. While the supply of new debt remains constrained because of declining net refinancing needs, which occurred due to improved fiscal accounts and prefinancing activities last year, the recent pickup in outflows from dedicated EM Debt portfolios should continue to pressure bond prices, especially in the context of reduced liquidity during the summer months. However, we expect outflows to stabilize in the next few months, which—together with lower net debt issuance, reduced long investor positioning, and high investor cash levels—should add to a more positive technical condition picture in the coming months.

Semiannual Report

June 30, 2022

	Emerging Markets Debt Fund

	The Emerging Markets Debt Fund seeks to provide attractive risk-adjusted returns relative to the Fund’s benchmark through investments in hard currency denominated debt issued in emerging market countries.

	AN OVERVIEW FROM THE PORTFOLIO MANAGERS

Marcelo Assalin, CFA Marco Ruijer, CFA	The William Blair Emerging Markets Debt Fund (Class I shares) (the “Fund”) posted a 20.65% decrease, net of fees, for the six months ended June 30, 2022. By comparison, the Fund’s benchmark index, the JPMorgan EMBI Global Diversified (the “Index”), decreased 20.31%. The Fund modestly underperformed the Index during the period. Positioning in higher-risk countries detracted the most from alpha in the period. Specifically, overweight positions in Ukraine, Sri Lanka, and Egypt detracted the most. Partially mitigating the negative attribution impact was an overweight position in Argentina and underweight positions in Russia and Belarus, which contributed the most to performance during the period. In Russia, our underweight position generated positive alpha following the military attack on Ukraine that began in February 2022. Bonds were marked down sharply as widescale financial and economic sanctions were placed on Russia, which we believe are likely to severely weaken its domestic economy and ultimately lead to a sovereign default. J.P. Morgan decided to remove all Russian bonds from the Index at the end of March 2022, and the Fund also sold the last of its U.S.-dollar-denominated Russian sovereign bonds during that same month. In Belarus, security selection (i.e., only holding the lower-priced bonds in the Index) and our underweight position in the country contributed to outperformance versus the Index as the country’s performance lagged the broader market. Belarus’s decision to allow Russia to host nuclear weapons and its support of Russia’s invasion of Ukraine weakened sentiment toward the country, prompting our decision to sell our Belarus holdings during March 2022. J.P. Morgan also decided to remove all Belarusian bonds from the Index at the end of March 2022. In Argentina, performance was driven primarily by our underweight of sovereign bonds and overweight of higher-quality provincial bonds. In addition, our basis positions and sovereign credit default swap hedges performed well in an environment in which Argentine bonds slid. Although higher-risk countries underperformed generally, Argentina was also plagued by domestic concerns as confidence in the government eroded. Rollover rates of domestic debt were low, raising concerns about near-term financing and the possibility that a funding mistake could occur sooner than many had thought. In Ukraine, our overweight exposure detracted from performance as the country came under military attack from Russia. Ukrainian officials have confirmed that they remain committed to servicing their external debt obligations for as long as possible, evidenced by a coupon payment paid to international investors following the attack. Moreover, Ukraine has received sizable financial support from both multilateral and bilateral organizations, which we believe should enable debt servicing to continue in the near term. However, given the extent of the uncertainty around the military invasion and its deep impact on Ukraine’s economy, the size of our overweight relative to the Index has been significantly eroded. In Sri Lanka, underperformance was driven by our overweight position as the country suspended servicing of its external debt and defaulted in April 2022. Sri Lanka is in discussions with the International Monetary Fund (IMF) for assistance and is in the early stages of debt restructuring. In Egypt, external bonds remained under pressure against a very unsupportive global macroeconomic backdrop and signs that the country’s external buffers are thinning. Fundamentally, there were signs of improvement, with Gulf Cooperation Council (GCC) countries making substantial financial commitments and Egypt having discussions with the IMF about a funded arrangement progressing.

June 30, 2022

William Blair Funds

Emerging Markets Debt Fund

In medium-risk countries, positioning drove slightly negative attribution impacts. In particular overweight positions in Trinidad and Tobago (now in the lower-risk countries group), Mongolia, and Guatemala contributed the most to relative performance. Conversely, underweight positions in Mexico, South Africa, and Brazil detracted the most from relative performance.

In Trinidad & Tobago, performance was primarily driven by our position in a state-owned entity called Heritage Petroleum. The entity performed an asset liability management optimization, paying approximately seven points above market price to retire outstanding holding company bonds and issue bonds from the operating company. The new bonds performed well in contrast to most bonds in the Index, which were down in the first half of the year.

In Mongolia, we reduced our positioning in the country’s sovereign debt after a slowdown of export activity into China due to COVID-related lockdowns. Our focus on shorter-duration debt also helped performance through security selection.

In Guatemala, the primary driver of outperformance was the use of corporate debt, which outperformed the sovereign in the first half of the year.

In Mexico, underperformance was driven primarily by an idiosyncratic issue with one of our corporate positions. Without this issue, the country was a relative outperformer in the first half of the year as it stood to benefit from higher oil prices and continued capital investment as companies continued to re-shore to North America.

In South Africa, we increased our positioning through the primary and secondary markets over the period. However, South African bonds failed to perform amid challenging global conditions. Labor and political tensions domestically also weighed on sentiment. Nevertheless, South Africa continued to experience fiscal tailwinds, which allowed us to remain comfortable with our exposure.

In Brazil, underperformance was driven by our underweight position in the country’s sovereign debt and the use of corporate debt, which was also impacted by idiosyncratic security selection issues.

Positioning in lower-risk countries contributed the most to alpha. Specifically overweight positions in Indonesia, Malaysia, and Georgia contributed the most. Conversely, underweight positions in China, Saudi Arabia, and United Arab Emirates (UAE) detracted the most from performance.

In Indonesia, outperformance was driven by our overweight positions in both sovereign bonds and quasi-sovereign bonds, given that spreads in those bonds were more insulated from the challenges of the environment than the rest of the Index. Indonesian assets have been better supported due to the country’s relatively strong economic growth and better terms of trade.

In Malaysia, our overweight position in a short-duration quasi-sovereign bond and underweight position in the rest of the curve contributed to performance as the longer-duration Malaysian quasi sovereign bonds sold off during the first half of the year.

We have an overweight in Georgia expressed through the national rail company which is a quasi-sovereign entity. This positioning benefitted our performance in the first half of the year. In spite of the conflict in Ukraine, forecasts for Georgia economic growth have increased due to upward revisions to external inflow. The country is using the re-routing of business, trade and labour flows in a beneficial way.

In China, performance was hurt by overweight positions in corporate credit. Because Chinese corporate credit risk appeared oversold, we increased our exposure to the segment—admittedly prematurely. Further hampering returns was the relative lack of typical support measures from the government. The overly drawn-out default process for some of the companies in the Chinese property sector also drove underperformance. We expect volatility to remain elevated but believe that these positions could ultimately be good entry points as the sector resets.

In Saudi Arabia and UAE, our underweight exposure detracted from performance. In a period of extreme market volatility as seen in the first half of the year, spreads only widened marginally due to strong fundamentals in the GCC countries and elevated oil prices. Our position in long-dated bonds also hurt performance due to their sensitivity to the upward move in U.S. Treasury yields during the first half of the year.

Please refer to the Emerging Markets Debt Review and Outlook relating to the Fund on page 80.

Semiannual Report

June 30, 2022

Emerging Markets Debt Fund

Performance Highlights (Unaudited)

Average Annual Total Returns through 6/30/2022

	Year to Date			1 Year			Since Inception(a)
Class I		(20.65	)%		(22.04	)%		(19.96	)%
Class R6		(20.62	)		(21.96	)		(19.89	)
JPMorgan EMBI Global Diversified		(20.31	)		(21.22	)		(18.83	)


(a)	Since inception is for the period from May 25, 2021 (Commencement of Operations) to June 30, 2022.

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 June 30, 2022. 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.

June 30, 2022

William Blair Funds

Emerging Markets Debt Fund

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)


Issuer	Principal Amount		Value

Foreign Government Bonds—59.7%
Angola—2.7%
Angolan Government International Bond, 8.000%, due 11/26/29	$	500	$	397
Angolan Government International Bond, 9.125%, due 11/26/49		825		583
Angolan Government International Bond—144A, 8.750%, due 4/14/32		250		200
				1,180
Argentina—1.4%
Argentine Republic Government International Bond, 0.500%, due 7/9/30, VRN(a)		575		126
Argentine Republic Government International Bond, 1.125%, due 7/9/35, VRN(a)		340		71
Argentine Republic Government International Bond, 1.500%, due 1/9/38, VRN(a)	EUR	320		77
Argentine Republic Government International Bond, 2.000%, due 1/9/38, VRN(a)	$	710		205
Argentine Republic Government International Bond, 2.500%, due 7/9/41, VRN(a)		475		122
				601
Armenia—0.3%
Republic of Armenia International Bond, 3.600%, due 2/2/31		200		139
Bahrain—0.9%
Bahrain Government International Bond, 5.250%, due 1/25/33		200		162
Bahrain Government International Bond, 6.250%, due 1/25/51		300		222
				384
Brazil—1.1%
Brazilian Government International Bond, 4.750%, due 1/14/50		280		190
Brazilian Government International Bond, 5.625%, due 2/21/47		400		309
				499
Cameroon—0.4%
Republic of Cameroon—144A, 5.950%, due 7/7/32	EUR	250		194
Chile—1.4%
Chile Government International Bond, 2.550%, due 7/27/33	$	275		224
Chile Government International Bond, 4.340%, due 3/7/42		450		402
				626


Issuer	Principal Amount		Value

Foreign Government Bonds—(continued)
Colombia—1.7%
Colombia Government International Bond, 4.125%, due 2/22/42	$	300	$	188
Colombia Government International Bond, 5.000%, due 6/15/45		830		554
				742
Costa Rica—0.4%
Costa Rica Government International Bond, 7.000%, due 4/4/44		200		171
Dominican Republic—3.4%
Dominican Republic International Bond, 4.500%, due 1/30/30		320		255
Dominican Republic International Bond, 4.875%, due 9/23/32		1,030		790
Dominican Republic International Bond, 5.875%, due 1/30/60		400		273
Dominican Republic International Bond—144A, 6.000%, due 2/22/33		200		166
				1,484
Ecuador—2.3%
Ecuador Government International Bond, 0.000%, due 7/31/30		410		176
Ecuador Government International Bond, 0.500%, due 7/31/40, VRN(a)		160		67
Ecuador Government International Bond, 1.000%, due 7/31/35, VRN(a)		1,390		679
Ecuador Government International Bond, 5.000%, due 7/31/30, VRN(a)		120		78
				1,000
Egypt—2.9%
Egypt Government International Bond, 4.750%, due 4/16/26	EUR	200		157
Egypt Government International Bond, 6.375%, due 4/11/31		250		164
Egypt Government International Bond, 7.500%, due 2/16/61	$	250		138
Egypt Government International Bond, 7.625%, due 5/29/32		250		162
Egypt Government International Bond, 8.875%, due 5/29/50		550		330
Egypt Government International Bond—144A, 7.300%, due 9/30/33		250		159
Egypt Government International Bond—144A, 8.750%, due 9/30/51		250		149
				1,259
El Salvador—0.6%
El Salvador Government International Bond, 7.125%, due 1/20/50		150		45
El Salvador Government International Bond, 7.625%, due 2/1/41		650		201
El Salvador Government International Bond, 8.250%, due 4/10/32		110		37
				283

See accompanying Notes to Financial Statements.

Semiannual Report

June 30, 2022

Emerging Markets Debt Fund

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)


Issuer	Principal Amount		Value

Foreign Government Bonds—(continued)
Gabon—0.7%
Gabon Government International Bond, 7.000%, due 11/24/31	$	450	$	325
Ghana—1.9%
Ghana Government International Bond, 7.750%, due 4/7/29		300		147
Ghana Government International Bond, 8.625%, due 4/7/34		400		191
Ghana Government International Bond, 8.750%, due 3/11/61		550		256
Ghana Government International Bond, 8.950%, due 3/26/51		500		234
				828
Hungary—0.3%
Hungary Government International Bond, 3.125%, due 9/21/51		200		132
Indonesia—3.4%
Indonesia Government International Bond, 3.400%, due 9/18/29		550		509
Indonesia Government International Bond, 4.450%, due 4/15/70		250		213
Indonesia Government International Bond, 4.750%, due 2/11/29		300		303
Indonesia Government International Bond, 5.125%, due 1/15/45		500		478
				1,503
Iraq—1.3%
Iraq International Bond, 6.752%, due 3/9/23		600		584
Ivory Coast—0.3%
Ivory Coast Government International Bond, 6.625%, due 3/22/48	EUR	200		140
Jamaica—0.5%
Jamaica Government International Bond, 7.875%, due 7/28/45	$	200		211
Kenya—1.0%
Republic of Kenya Government International Bond, 8.250%, due 2/28/48		700		427
Lebanon—0.5%
Lebanon Government International Bond, 5.800%, due 4/14/20(b)		1,400		92
Lebanon Government International Bond, 6.850%, due 3/23/27(b)		600		35
Lebanon Government International Bond, 7.150%, due 11/20/31(b)		1,200		81
				208
Mexico—0.9%
Mexico Government International Bond, 3.750%, due 4/19/71		600		379
Mongolia—0.4%
Mongolia Government International Bond, 5.625%, due 5/1/23		200		196


Issuer	Principal Amount		Value

Foreign Government Bonds—(continued)
Morocco—0.3%
Morocco Government International Bond, 4.000%, due 12/15/50	$	200	$	121
Mozambique—0.3%
Mozambique International Bond, 5.000%, due 9/15/31, VRN(a)		200		145
Nigeria—2.3%
Nigeria Government International Bond, 7.625%, due 11/28/47		750		448
Nigeria Government International Bond, 7.696%, due 2/23/38		400		248
Nigeria Government International Bond—144A, 7.375%, due 9/28/33		250		162
Nigeria Government International Bond—144A, 8.250%, due 9/28/51		225		139
				997
Oman—2.0%
Oman Government International Bond, 6.750%, due 1/17/48		1,000		860
Pakistan—1.7%
Pakistan Government International Bond, 6.875%, due 12/5/27		200		134
Pakistan Government International Bond, 8.875%, due 4/8/51		800		476
Pakistan Government International Bond—144A, 6.000%, due 4/8/26		200		134
				744
Panama—1.4%
Panama Government International Bond, 4.500%, due 4/1/56		400		318
Panama Government International Bond, 4.500%, due 1/19/63		400		310
				628
Paraguay—1.1%
Paraguay Government International Bond, 5.400%, due 3/30/50		600		463
Peru—1.1%
Peruvian Government International Bond, 3.000%, due 1/15/34		200		164
Peruvian Government International Bond, 3.230%, due 7/28/21		400		246
Peruvian Government International Bond, 3.600%, due 1/15/72		100		67
				477
Philippines—1.4%
Philippine Government International Bond, 3.700%, due 2/2/42		500		413
Philippine Government International Bond, 5.000%, due 1/13/37		200		199
				612
Qatar—2.2%
Qatar Government International Bond, 4.400%, due 4/16/50		1,000		959

See accompanying Notes to Financial Statements.

June 30, 2022

William Blair Funds

Emerging Markets Debt Fund

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)


Issuer	Principal Amount		Value

Foreign Government Bonds—(continued)
Romania—1.4%
Romanian Government International Bond, 2.875%, due 4/13/42	EUR	200	$	122
Romanian Government International Bond, 3.375%, due 1/28/50		780		483
				605
Saudi Arabia—2.3%
Saudi Government International Bond, 2.250%, due 2/2/33	$	400		332
Saudi Government International Bond, 3.250%, due 11/17/51		200		150
Saudi Government International Bond, 3.450%, due 2/2/61		500		376
Saudi Government International Bond, 3.750%, due 1/21/55		200		164
				1,022
Senegal—0.6%
Senegal Government International Bond, 6.750%, due 3/13/48		400		253
Serbia—0.6%
Serbia International Bond, 1.500%, due 6/26/29	EUR	200		151
Serbia International Bond, 2.050%, due 9/23/36		200		122
				273
South Africa—2.2%
Republic of South Africa Government International Bond, 5.000%, due 10/12/46	$	200		130
Republic of South Africa Government International Bond, 5.650%, due 9/27/47		200		136
Republic of South Africa Government International Bond, 5.750%, due 9/30/49		800		548
Republic of South Africa Government International Bond, 7.300%, due 4/20/52		200		160
				974
Sri Lanka—1.2%
Sri Lanka Government International Bond, 5.750%, due 4/18/23		400		124
Sri Lanka Government International Bond, 6.850%, due 11/3/25		400		120
Sri Lanka Government International Bond, 7.850%, due 3/14/29		1,000		280
				524
Tunisia—0.6%
Banque Centrale de Tunisie International Bond, 5.625%, due 2/17/24	EUR	400		243
Turkey—1.9%
Turkey Government International Bond, 4.375%, due 7/8/27		100		87
Turkey Government International Bond, 4.875%, due 4/16/43	$	450		265
Turkey Government International Bond, 5.750%, due 5/11/47		200		123


Issuer	Principal Amount		Value

Foreign Government Bonds—(continued)
Turkey (continued)
Turkey Government International Bond, 5.950%, due 1/15/31	$	200	$	145
Turkey Government International Bond, 8.600%, due 9/24/27		250		226
				846
Ukraine—1.0%
Ukraine Government International Bond, 0.000%, due 5/31/40, VRN(a)		280		69
Ukraine Government International Bond, 6.876%, due 5/21/29		200		48
Ukraine Government International Bond, 7.253%, due 3/15/33		1,400		343
				460
United Arab Emirates—1.2%
Abu Dhabi Government International Bond, 2.700%, due 9/2/70		450		301
United Arab Emirates Government International Bond, 4.951%, due 7/7/52		200		203
				504
Uruguay—0.8%
Uruguay Government International Bond, 4.975%, due 4/20/55		350		344
Uzbekistan—0.6%
Republic of Uzbekistan International Bond, 3.900%, due 10/19/31		400		283
Zambia—0.8%
Zambia Government International Bond, 8.500%, due 4/14/24		400		240
Zambia Government International Bond, 8.970%, due 7/30/27		200		116
				356
Total Foreign Government Bonds—59.7% (cost $33,881)				26,188

Foreign Corporate Bonds—29.2%
Azerbaijan—0.4%
State Oil Co. of the Azerbaijan Republic, 6.950%, due 3/18/30		200		189
Brazil—1.0%
Atento Luxco 1 S.A., 8.000%, due 2/10/26		150		106
MV24 Capital BV, 6.748%, due 6/1/34		178		159
Petrorio Luxembourg S.a.r.l., 6.125%, due 6/9/26		200		184
				449
Chile—2.5%
CAP S.A., 3.900%, due 4/27/31		250		196
Celulosa Arauco y Constitucion S.A., 4.250%, due 4/30/29		200		180

See accompanying Notes to Financial Statements.

Semiannual Report

June 30, 2022

Emerging Markets Debt Fund

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)


Issuer	Principal Amount		Value

Foreign Corporate Bonds—(continued)
Chile (continued)
Empresa Nacional del Petroleo, 5.250%, due 11/6/29	$	450	$	425
Kenbourne Invest S.A., 4.700%, due 1/22/28		200		154
VTR Finance N.V., 6.375%, due 7/15/28		200		145
				1,100
China—2.4%
China Evergrande Group, 9.500%, due 3/29/24(b)		300		25
CNAC HK Finbridge Co., Ltd., 3.000%, due 9/22/30		200		174
CNAC HK Finbridge Co., Ltd., 4.875%, due 3/14/25		200		203
Enn Energy holdings, Ltd.—144A, 4.625%, due 5/17/27		200		201
Huarong Finance 2017 Co., Ltd., 4.250%, due 11/7/27		200		179
Sinochem Offshore Capital Co., Ltd., 2.375%, due 9/23/31		300		243
Yuzhou Group Holdings Co., Ltd., 7.850%, due 8/12/26(b)		200		13
				1,038
Colombia—0.8%
Canacol Energy Ltd.—144A, 5.750%, due 11/24/28		200		162
Gran Tierra Energy International Holdings, Ltd., 6.250%, due 2/15/25		200		171
				333
Dominican Republic—0.9%
Aeropuertos Dominicanos Siglo XXI S.A., 6.750%, due 3/30/29		200		181
Empresa Generadora de Electricidad Haina S.A.—144A, 5.625%, due 11/8/28		250		213
				394
Georgia—0.4%
Georgian Railway JSC, 4.000%, due 6/17/28		200		154
Ghana—0.4%
Tullow Oil plc, 7.000%, due 3/1/25		200		165
Guatemala—0.8%
Energuate Trust, 5.875%, due 5/3/27		200		187
Investment Energy Resources Ltd.—144A, 6.250%, due 4/26/29		200		170
				357
India—1.1%
Continuum Energy Levante, 4.500%, due 2/9/27		197		154
Export-Import Bank of India, 2.250%, due 1/13/31		200		158
Periama Holdings LLC, 5.950%, due 4/19/26		200		178
				490


Issuer	Principal Amount		Value

Foreign Corporate Bonds—(continued)
Indonesia—2.9%
Medco Laurel Tree Pte, Ltd., 6.950%, due 11/12/28	$	200	$	166
Nickel Mines Ltd.—144A, 6.500%, due 4/1/24		200		187
Perusahaan Penerbit SBSN Indonesia III—144A, 4.700%, due 6/6/32		200		196
PT Pertamina Persero, 2.300%, due 2/9/31		200		162
PT Pertamina Persero, 3.100%, due 8/27/30		400		347
PT Pertamina Persero, 6.000%, due 5/3/42		200		193
				1,251
Kazakhstan—2.6%
KazMunayGas National Co. JSC, 3.500%, due 4/14/33		1,600		1,146
Malaysia—3.6%
1MDB Global Investments, Ltd., 4.400%, due 3/9/23		1,200		1,162
Dua Capital, Ltd., 2.780%, due 5/11/31		300		246
Petronas Capital, Ltd., 4.550%, due 4/21/50		200		191
				1,599
Mexico—3.6%
BBVA Bancomer S.A., 5 year CMT + 2.650%, 5.125%, due 1/18/33, VRN		200		170
Credito Real S.A.B. de C.V. SOFOM ER, 5.000%, due 2/1/27	EUR	200		12
Petroleos Mexicanos, 6.700%, due 2/16/32	$	330		250
Petroleos Mexicanos, 6.750%, due 9/21/47		538		329
Petroleos Mexicanos, 6.950%, due 1/28/60		500		308
Petroleos Mexicanos, 7.690%, due 1/23/50		500		334
Petroleos Mexicanos—144A, 8.750%, due 6/2/29		200		178
				1,581
Mongolia—0.4%
Development Bank of Mongolia, 7.250%, due 10/23/23		200		193
Nigeria—0.5%
SEPLAT Energy plc, 7.750%, due 4/1/26		250		222
Panama—0.4%
Aeropuerto Internacional de Tocumen S.A., 5.125%, due 8/11/61		250		196

See accompanying Notes to Financial Statements.

June 30, 2022

William Blair Funds

Emerging Markets Debt Fund

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)


Issuer	Principal Amount		Value

Foreign Corporate Bonds—(continued)
Peru—0.9%
Corporation Financiera de Desarrollo S.A., 2.400%, due 9/28/27	$	200	$	169
Fondo MIVIVIENDA S.A.—144A, 4.625%, due 4/12/27		250		241
				410
Trinidad And Tobago—0.5%
Heritage Petrol Co., Ltd.—144A, 9.000%, due 8/12/29		200		207
Turkey—0.6%
Turkiye Ihracat Kredi Bankasi A.S.—144A, 5.750%, due 7/6/26		300		251
United Arab Emirates—2.1%
DP World, Ltd., 4.700%, due 9/30/49		200		163
Emirate of Dubai Government International Bonds, 3.900%, due 9/9/50		200		143
Finance Department Government of Sharjah, 3.625%, due 3/10/33		300		255
MAF Global Securities, Ltd., 5 year CMT + 3.539%, 6.375%, due 3/20/26, VRN(c)		200		192
Shelf Drilling Holdings, Ltd., 8.250%, due 2/15/25		200		157
				910
Uzbekistan—0.4%
Ipoteka-Bank ATIB, 5.500%, due 11/19/25		200		176
Total Foreign Corporate Bonds—29.2% (cost $15,100)				12,811

Foreign Municipal Bonds—1.2%
Argentina—1.2%
Provincia de Buenos Aires, 3.900%, due 9/1/37, VRN(a)		400		121
Provincia de Buenos Aires—144A, 3.500%, due 9/1/37, VRN(a)		200		56
Provincia de Buenos Aires—144A, 3.900%, due 9/1/37, VRN(a)		50		15
Provincia de Cordoba, 6.875%, due 12/10/25, VRN(a)		200		152
Provincia del Chubut Argentina, 7.750%, due 7/26/30, VRN(a)		227		179
				523
Total Foreign Municipal Bonds—1.2% (cost $647)				523

Repurchase Agreement
Fixed Income Clearing Corporation, 0.240% dated 6/30/22, due 7/1/22, repurchase price $3,343, collateralized by U.S. Treasury Note, 1.250%, due 06/30/28, valued at $3,410		3,343		3,343



Issuer	Value

Repurchase Agreement—(continued)
Total Repurchase Agreement—7.7% (cost $3,343)	$	3,343
Total Investments in Securities—97.8% (cost $52,971)		42,865
Total Investments—97.8% (cost $52,971)		42,865
Cash and other assets, less liabilities—2.2%		983
Net assets—100.0%	$	43,848

(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 June 30, 2022.

(b) = Defaulted securities.

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.

SOFR = Secured Overnight Financing Rate

VRN = Variable Rate Note

At June 30, 2022, the Fund’s Portfolio of Investments includes the following industry categories (as a percentage of long-term investments):

Sovereign		67.8%
Quasi-Sovereign		19.8%
Corporate
Energy		4.3%
Financials		1.9%
Materials		1.9%
Utilities		1.5%
Communication Services		0.8%
Industrials		0.4%
Consumer Discretionary		0.3%
Sub Sovereign		1.3%
Total		100.0%

At June 30, 2022, the Fund’s Portfolio of Investments includes the following currency categories (as a percentage of long-term investments):

U.S. Dollar		95.1%
Euro		4.9%
Total		100.0%

See accompanying Notes to Financial Statements.

Semiannual Report

June 30, 2022

Emerging Markets Debt Fund

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)

Forward Foreign Currency Contracts

Settlement Date	Deliver/Receive	Counterparty	Local Currency (in thousands)	USD (Base) Purchased or Sold		Current Value		Net Unrealized Appreciation (Depreciation)
Bought
9/21/22	Euro	Citibank N.A. London	176		$ 187		$ 185		$	(2	)
Sold
9/21/22	Euro	Citibank N.A. London	2,171		2,335		2,288			47
Total net unrealized appreciation (depreciation) on forward foreign currency contracts									$	45

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)
6 Month EURIBOR	Receive	(0.250)%	1Y	June 2026	LCH		EUR 157		$(2)		$ 12		$	14
6 Month EURIBOR	Receive	(0.250)%	1Y	June 2028	LCH		EUR 722		43		91			48
6 Month EURIBOR	Receive	0.000%	1Y	June 2031	LCH		EUR 166		(2)		30			32
6 Month EURIBOR	Receive	0.000%	1Y	June 2036	LCH		EUR 347		48		104			56
6 Month EURIBOR	Receive	0.250%	1Y	June 2041	LCH		EUR 620		16		208			192
12 Month USD SOFR	Receive	1.500%	1Y	December 2031	LCH		$1,910		113		184			71
12 Month USD SOFR	Receive	1.650%	1Y	December 2041	LCH		442		62		75			13
12 Month USD SOFR	Receive	1.600%	1Y	December 2051	LCH		569		37		113			76
12 Month USD SOFR	Pay	1.250%	1Y	December 2026	LCH		2,753		(56)		(158)			(102	)
12 Month USD SOFR	Pay	1.100%	1Y	December 2024	LCH		2,660		(35)		(102)			(67	)
12 Month USD SOFR	Pay	1.600%	1Y	December 2036	LCH		1,097		(146)		(154)			(8	)
12 Month USD SOFR	Pay	1.400%	1Y	December 2028	LCH		2,641		(81)		(195)			(114	)
													$	211

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)
Kingdom of Saudi Arabia	Buy	1.000%	3M	June 2026	ICE		$400		$(8)		$(5)		$	3
Republic of Argentina	Buy	5.000%	3M	December 2023	ICE		200		32		59			27
Republic of Argentina	Buy	1.000%	3M	December 2025	ICE		500		306		371			65
Republic of Argentina	Buy	5.000%	3M	June 2026	ICE		250		143		172			29
Republic of Argentina	Sell	5.000%	3M	December 2031	ICE		500		(293)		(358)			(65	)
Republic of Argentina	Sell	5.000%	3M	June 2032	ICE		100		(63)		(72)			(9	)
Republic of Argentina	Sell	5.000%	3M	December 2024	ICE		250		(103)		(146)			(43	)
Republic of Turkey	Sell	1.000%	3M	June 2024	ICE		250	��	(31)		(35)			(4	)
													$	3
Total net unrealized appreciation (depreciation) on swaps													$	214

See accompanying Notes to Financial Statements.

June 30, 2022

William Blair Funds

Macro Allocation Fund (In Liquidation)

Portfolio of Investments, June 30, 2022 (all dollar amounts in thousands) (unaudited)


Issuer	Principal Amount		Value

Repurchase Agreement
Fixed Income Clearing Corporation, 0.240% dated 6/30/22, due 7/1/22, repurchase price $22,881, collateralized by U.S. Treasury Note, 0.875% - 1.625%, due 11/15/30 - 05/15/31, valued at $23,338	$	22,881	$	22,881
Total Repurchase Agreement—101.2% (cost $22,881)				22,881
Liabilities, plus cash and other assets—(1.2)%				(280	)
Net assets—100.0%			$	22,601

Upon recommendation of William Blair Investment Management, LLC (the “Adviser”), the Board of Trustees determined that it was in the best interest of Macro Allocation Fund to redeem all shares of Macro Allocation Fund outstanding on or before July 29, 2022, and then to terminate Macro Allocation Fund. All outstanding shares of Macro Allocation Fund were redeemed on July 29, 2022.

See accompanying Notes to Financial Statements.

Semiannual Report

June 30, 2022

Statements of Assets and Liabilities

As of June 30, 2022 (dollar amounts in thousands) (unaudited)

	Growth Fund		Large Cap Growth Fund			Mid Cap Growth Fund		Mid Cap Value Fund
Assets
Investments in securities, at cost	$	163,437	$	1,103,726		$	38,744	$	1,563
Investments in securities, at value	$	224,765	$	1,074,678		$	35,390	$	1,352
Cash		—		—			—		34
Receivable for securities sold		—		6,482			—		21
Receivable for fund shares sold		110		2,608			33		—
Receivable from Adviser		2		117			15		9
Dividend and interest receivable		67		242			—		2
Total assets		224,944		1,084,127			35,438		1,418
Liabilities
Payable for securities purchased		591		5,420			—		24
Payable for fund shares redeemed		62		342			—		—
Management fee payable		145		549			27		1
Distribution fee payable		5		28			1		—
Other payables and accrued expenses		85		146			70		21
Total liabilities		888		6,485			98		46
Net assets	$	224,056	$	1,077,642		$	35,340	$	1,372
Capital
Composition of net assets
Paid in capital	$	144,232	$	1,117,150		$	25,494	$	1,584
Total distributable earnings (loss)		79,824		(39,508	)		9,846		(212	)
Net assets	$	224,056	$	1,077,642		$	35,340	$	1,372

Class N shares
Net assets	$	25,185	$	128,452		$	3,384		—
Shares outstanding		2,982,937		7,692,880			374,643		—
Net asset value per share	$	8.44	$	16.70		$	9.03		—
Class I shares
Net assets	$	187,817	$	739,937		$	31,494	$	48
Shares outstanding		17,606,014		41,400,865			3,155,328		5,424
Net asset value per share	$	10.67	$	17.87		$	9.98	$	8.74
Class R6 shares
Net assets	$	11,054	$	209,253		$	462	$	1,324
Shares outstanding		1,032,533		11,714,073			46,219		151,490
Net asset value per share	$	10.71	$	17.86		$	10.00	$	8.74

See accompanying Notes to Financial Statements.

June 30, 2022

William Blair Funds

Statements of Operations

For the Period Ended June 30, 2022 (all amounts in thousands) (unaudited)

	Growth Fund			Large Cap Growth Fund			Mid Cap Growth Fund			Mid Cap Value Fund (a)
Investment income
Dividends	$	807		$	3,518		$	71			$	9
Interest		1			2			—				—
Total income		808			3,520			71				9
Expenses
Investment advisory fees		1,032			3,321			187				3
Distribution fees		38			208			5				—
Custodian fees		32			30			29				17
Transfer agent fees		38			59			4				1
Sub-transfer agent fees
Class N		21			124			3				—
Class I		76			376			42				—
Professional fees		21			38			14				11
Registration fees		32			64			29				2
Shareholder reporting fees		7			18			1				—
Trustee fees		11			30			3				—
Other expenses		9			20			5				—
Total expenses before expense limitation		1,317			4,288			322				34
Expenses waived or reimbursed by the Adviser
Class N		(7	)		(121	)		(10	)			—
Class I		—			(365	)		(108	)			(1	)
Class R6		—			(50	)		(1	)			(31	)
Total expenses waived or reimbursed by the Adviser		(7	)		(536	)		(119	)			(32	)
Net expenses		1,310			3,752			203				2
Net investment income (loss)		(502	)		(232	)		(132	)			7
Realized and unrealized gain (loss)
Net realized gain (loss) on transactions from:
Investments in securities		12,601			(15,728	)		1,091				(8	)
Total net realized gain (loss)		12,601			(15,728	)		1,091				(8	)
Change in net unrealized appreciation (depreciation) of:
Investments in securities		(106,248	)		(415,285	)		(17,572	)			(211	)
Change in net unrealized appreciation (depreciation)		(106,248	)		(415,285	)		(17,572	)			(211	)
Net increase (decrease) in net assets resulting from operations	$	(94,149	)	$	(431,245	)	$	(16,613	)		$	(212	)

(a)	For the period from March 16, 2022 (Commencement of Operations) to June 30, 2022.

See accompanying Notes to Financial Statements.

Semiannual Report

June 30, 2022

Statements of Changes in Net Assets

For the Period Ended June 30, 2022 (unaudited) and the Year Ended December 31, 2021 (all amounts in thousands)

	Growth Fund						Large Cap Growth Fund						Mid Cap Growth Fund						Mid Cap Value Fund
	2022			2021			2022			2021			2022			2021			2022 (a)
*Operations*
Net investment income (loss)	$	(502	)	$	(1,243	)	$	(232	)	$	(863	)	$	(132	)	$	(523	)	$	7
Net realized gain (loss) on investments, and other assets and liabilities		12,601			38,774			(15,728	)		54,657			1,091			22,029			(8	)
Change in net unrealized appreciation (depreciation) on investments, and other assets and liabilities		(106,248	)		27,119			(415,285	)		154,591			(17,572	)		(13,963	)		(211	)
Net increase (decrease) in net assets resulting from operations		(94,149	)		64,650			(431,245	)		208,385			(16,613	)		7,543			(212	)
Distributions to shareholders
Class N		—			(4,767	)		—			(8,639	)		—			(243	)		—
Class I		—			(31,377	)		—			(27,171	)		—			(1,877	)		—
Class R6		—			(1,576	)		—			(9,649	)		—			(27	)		—
Total distributions		—			(37,720	)		—			(45,459	)		—			(2,147	)		—
Capital stock transactions
Proceeds from sale of shares		11,719			24,728			604,815			419,690			2,815			8,991			1,584
Shares issued in reinvestment of income dividends and capital gain distributions		—			36,511			—			43,442			—			2,127			—
Less cost of shares redeemed		(39,214	)		(39,720	)		(201,948	)		(232,907	)		(3,712	)		(47,634	)		—
Net increase (decrease) in net assets resulting from capital share transactions		(27,495	)		21,519			402,867			230,225			(897	)		(36,516	)		1,584
Increase (decrease) in net assets		(121,644	)		48,449			(28,378	)		393,151			(17,510	)		(31,120	)		1,372
Net assets
Beginning of period		345,700			297,251			1,106,020			712,869			52,850			83,970			—
End of period	$	224,056		$	345,700		$	1,077,642		$	1,106,020		$	35,340		$	52,850		$	1,372

(a)	For the period from March 16, 2022 (Commencement of Operations) to June 30, 2022.

See accompanying Notes to Financial Statements.

June 30, 2022

William Blair Funds

Statements of Assets and Liabilities

As of June 30, 2022 (dollar amounts in thousands) (unaudited)

	Small-Mid Cap Core Fund			Small-Mid Cap Growth Fund			Small Cap Growth Fund			Small Cap Value Fund
Assets
Investments in securities, at cost	$	136,427		$	2,188,032		$	511,734		$	1,309,814
Investments in securities, at value	$	117,955		$	2,119,868		$	492,420		$	1,264,683
Receivable for securities sold		1,363			4,666			7,967			5,820
Receivable for fund shares sold		2			4,402			432			294
Receivable from Adviser		30			111			20			56
Dividend and interest receivable		38			209			118			1,167
Total assets		119,388			2,129,256			500,957			1,272,020
Liabilities
Payable for securities purchased		1,150			10,714			7,926			1,962
Payable for fund shares redeemed		7			24,342			461			355
Management fee payable		91			1,812			467			820
Distribution fee payable		—			31			24			1
Other payables and accrued expenses		61			688			187			182
Total liabilities		1,309			37,587			9,065			3,320
Net assets	$	118,079		$	2,091,669		$	491,892		$	1,268,700
Capital
Composition of net assets
Paid in capital	$	141,798		$	2,091,928		$	508,544		$	998,530
Total distributable earnings (loss)		(23,719	)		(259	)		(16,652	)		270,170
Net assets	$	118,079		$	2,091,669		$	491,892		$	1,268,700
Class N shares
Net assets		—		$	142,341		$	109,837		$	2,592
Shares outstanding		—			6,177,971			4,779,705			91,047
Net asset value per share		—		$	23.04		$	22.98		$	28.46
Class I shares
Net assets	$	89,264		$	1,624,862		$	285,790		$	872,616
Shares outstanding		6,995,018			65,463,168			10,562,505			30,658,422
Net asset value per share	$	12.76		$	24.82		$	27.06		$	28.46
Class R6 shares
Net assets	$	28,815		$	324,466		$	96,265		$	393,492
Shares outstanding		2,256,215			13,040,665			3,548,354			13,818,824
Net asset value per share	$	12.77		$	24.88		$	27.13		$	28.48

See accompanying Notes to Financial Statements.

Semiannual Report

June 30, 2022

Statements of Operations

For the Period Ended June 30, 2022 (all amounts in thousands) (unaudited)

	Small-Mid Cap Core Fund			Small-Mid Cap Growth Fund			Small Cap Growth Fund			Small Cap Value Fund
Investment income
Dividends	$	521		$	5,326		$	1,253		$	10,103
Less foreign tax withheld		(7	)		(53	)		(54	)		(20	)
Interest		1			8			3			2
Total income		515			5,281			1,202			10,085
Expenses
Investment advisory fees		573			12,393			3,251			5,304
Distribution fees		—			223			174			4
Custodian fees		34			49			37			34
Transfer agent fees		2			120			46			28
Sub-transfer agent fees
Class N		—			141			104			2
Class I		50			1,429			191			656
Professional fees		15			83			34			64
Registration fees		15			45			37			15
Shareholder reporting fees		—			59			21			31
Trustee fees		2			113			24			64
Other expenses		16			49			15			54
Total expenses before expense limitation		707			14,704			3,934			6,256
Expenses waived or reimbursed by the Adviser
Class N		—			(89	)		(50	)		(1	)
Class I		(91	)		(848	)		(58	)		(171	)
Class R6		(20	)		—			—			—
Total expenses waived or reimbursed by the Adviser		(111	)		(937	)		(108	)		(172	)
Net expenses		596			13,767			3,826			6,084
Net investment income (loss)		(81	)		(8,486	)		(2,624	)		4,001
Realized and unrealized gain (loss)
Net realized gain (loss) on transactions from:
Investments in securities		1,742			5,133			(1,213	)		48,723
Redemptions in-kind		—			3,930			—			201,191
Total net realized gain (loss)		1,742			9,063			(1,213	)		249,914
Change in net unrealized appreciation (depreciation) of:
Investments in securities		(32,286	)		(847,132	)		(194,692	)		(476,879	)
Change in net unrealized appreciation (depreciation)		(32,286	)		(847,132	)		(194,692	)		(476,879	)
Net increase (decrease) in net assets resulting from operations	$	(30,625	)	$	(846,555	)	$	(198,529	)	$	(222,964	)

See accompanying Notes to Financial Statements.

June 30, 2022

William Blair Funds

Statements of Changes in Net Assets

For the Period Ended June 30, 2022 (unaudited) and the Year Ended December 31, 2021 (all amounts in thousands)

																			Small Cap Value Fund
	Small-Mid Cap Core Fund						Small-Mid Cap Growth Fund						Small Cap Growth Fund						Period Ended June 30,			Period Ended December 31,			Year Ended October 31,
	2022			2021			2022			2021			2022			2021			2022			2021 (a)			2021
Operations
Net investment income (loss)	$	(81	)	$	(88	)	$	(8,486	)	$	(26,790	)	$	(2,624	)	$	(7,225	)	$	4,001		$	1,951		$	9,948
Net realized gain (loss) on investments, and other assets and liabilities		1,742			6,597			9,063			732,573			(1,213	)		132,217			249,914			61,233			239,708
Change in net unrealized appreciation (depreciation) on investments, and other assets and liabilities		(32,286	)		6,181			(847,132	)		(416,628	)		(194,692	)		(38,580	)		(476,879	)		23,828			449,268
Net increase (decrease) in net assets resulting from operations		(30,625	)		12,690			(846,555	)		289,155			(198,529	)		86,412			(222,964	)		87,012			698,924
Distributions to shareholders
Class N		—			—			—			(21,416	)		—			(32,137	)		—			(117	)		—	^(b)
Class I		—			—			—			(214,965	)		—			(64,470	)		—			(40,018	)		(184,473	)
Class R6		—			—			—			(27,879	)		—			(18,771	)		—			(38,470	)		—	^(b)
Total distributions		—			—			—			(264,260	)		—			(115,378	)		—			(78,605	)		(184,473	)
Capital stock transactions
Proceeds from sale of shares		71,501			56,055			319,373			760,395			83,407			138,428			104,754			156,798			1,256,445
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			—			113,063			—			77,431			181,788
Less cost of shares redeemed		(15,577	)		(6,010	)		(429,211	)		(1,572,925	)		(103,064	)		(187,055	)		(682,488	)		(193,465	)		(1,159,600	)
Net increase (decrease) in net assets resulting from capital share transactions		55,924			50,045			(109,838	)		(553,915	)		(19,657	)		64,436			(577,734	)		40,764			324,367
Increase (decrease) in net assets		25,299			62,735			(956,393	)		(529,020	)		(218,186	)		35,470			(800,698	)		49,171			838,818
Net assets
Beginning of period		92,780			30,045			3,048,062			3,577,082			710,078			674,608			2,069,398			2,020,227			1,181,409
End of period	$	118,079		$	92,780		$	2,091,669		$	3,048,062		$	491,892		$	710,078		$	1,268,700		$	2,069,398		$	2,020,227

(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.

Semiannual Report

June 30, 2022

Statements of Assets and Liabilities

As of June 30, 2022 (dollar amounts in thousands) (unaudited)

	Global Leaders Fund		International Leaders Fund			International Growth Fund		Institutional International Growth Fund
Assets
Investments in securities, at cost	$	71,104	$	977,645		$	1,277,522	$	818,146
Investments in securities, at value	$	94,304	$	973,871		$	1,464,604	$	930,178
Foreign currency, at value (cost $9; $227; $579; $293)		9		227			579		294
Receivable for securities sold		1,076		—			169		110
Receivable for fund shares sold		14		5,717			2,036		107
Receivable from Adviser		20		87			149		—
Dividend and interest receivable		184		2,459			5,978		3,404
Total assets		95,607		982,361			1,473,515		934,093
Liabilities
Payable for fund shares redeemed		21		792			761		20
Management fee payable		70		704			1,165		709
Distribution fee payable		2		7			42		—
Foreign capital gains tax liability		2		540			109		8
Other payables and accrued expenses		79		227			945		415
Total liabilities		174		2,270			3,022		1,152
Net assets	$	95,433	$	980,091		$	1,470,493	$	932,941
Capital
Composition of net assets
Paid in capital	$	69,578	$	1,000,350		$	1,119,902	$	780,597
Total distributable earnings (loss)		25,855		(20,259	)		350,591		152,344
Net assets	$	95,433	$	980,091		$	1,470,493	$	932,941

Class N shares
Net assets	$	8,673	$	34,735		$	195,767		—
Shares outstanding		655,329		2,078,992			7,516,637		—
Net asset value per share	$	13.23	$	16.71		$	26.04		—
Class I shares
Net assets	$	83,133	$	386,886		$	1,193,559		—
Shares outstanding		6,236,195		23,004,090			44,459,016		—
Net asset value per share	$	13.33	$	16.82		$	26.85		—
Institutional/Class R6 shares
Net assets	$	3,627	$	558,470		$	81,167	$	932,941
Shares outstanding		271,772		33,193,200			3,019,407		70,683,628
Net asset value per share	$	13.34	$	16.82		$	26.88	$	13.20

See accompanying Notes to Financial Statements.

June 30, 2022

William Blair Funds

Statements of Operations

For the Period Ended June 30, 2022 (all amounts in thousands) (unaudited)

	Global Leaders Fund			International Leaders Fund				International Growth Fund				Institutional International Growth Fund
Investment income
Dividends	$	688			$	11,670			$	18,461			$	11,215
Less foreign tax withheld		(49	)			(1,290	)			(2,119	)			(1,345	)
Other income		—				4				6,390				2,812
Total income		639				10,384				22,732				12,682
Expenses
Investment advisory fees		491				4,860				8,384				4,942
Distribution fees		14				50				290				—
Custodian fees		40				106				228				113
Transfer agent fees		5				30				53				17
Sub-transfer agent fees
Class N		8				28				157				—
Class I		38				271				706				—
Professional fees		23				61				92				66
Registration fees		23				47				34				12
Shareholder reporting fees		2				14				37				4
Trustee fees		4				41				77				44
Other expenses		7				24				33				18
Total expenses before expense limitation		655				5,532				10,091				5,216
Expenses waived or reimbursed by the Adviser
Class N		(15	)			(29	)			(73	)			—
Class I		(103	)			(285	)			(192	)			—
Institutional/Class R6		(4	)			(183	)			—				—
Total expenses waived or reimbursed by the Adviser		(122	)			(497	)			(265	)			—
Net expenses		533				5,035				9,826				5,216
Net investment income (loss)		106				5,349				12,906				7,466
Realized and unrealized gain (loss)
Net realized gain (loss) on transactions from:
Investments in securities (net of foreign capital gains tax paid $— ; $140; $— ; $—)		1,398				(12,332	)			65,689				42,418
Foreign currency transactions		(3	)			(512	)			(347	)			(248	)
Total net realized gain (loss)		1,395				(12,844	)			65,342				42,170
Change in net unrealized appreciation (depreciation) of:
Investments in securities (net of foreign capital gains tax accrual $2; $(869); $(1,802); $(1,155))		(45,438	)			(429,446	)			(725,106	)			(438,912	)
Foreign currency translations		(8	)			(84	)			(198	)			(102	)
Change in net unrealized appreciation (depreciation)		(45,446	)			(429,530	)			(725,304	)			(439,014	)
Net increase (decrease) in net assets resulting from operations	$	(43,945	)		$	(437,025	)		$	(647,056	)		$	(389,378	)

See accompanying Notes to Financial Statements.

Semiannual Report

June 30, 2022

Statements of Changes in Net Assets

For the Period Ended June 30, 2022 (unaudited) and the Year Ended December 31, 2021 (all amounts in thousands)

	Global Leaders Fund						International Leaders Fund						International Growth Fund						Institutional International Growth Fund
	2022			2021			2022			2021			2022			2021			2022			2021
Operations
Net investment income (loss)	$	106		$	(460	)	$	5,349		$	(2,629	)	$	12,906		$	(9,181	)	$	7,466		$	(2,879	)
Net realized gain (loss) on investments, and other assets and liabilities		1,395			9,127			(12,844	)		39,090			65,342			332,710			42,170			172,547
Change in net unrealized appreciation (depreciation) on investments, and other assets and liabilities		(45,446	)		12,186			(429,530	)		79,811			(725,304	)		(124,200	)		(439,014	)		(51,592	)
Net increase (decrease) in net assets resulting from operations		(43,945	)		20,853			(437,025	)		116,272			(647,056	)		199,329			(389,378	)		118,076
Distributions to shareholders
Class N		—			(737	)		—			(1,210	)		—			(31,606	)		—			—
Class I		—			(6,705	)		—			(16,237	)		—			(181,589	)		—			—
Institutional/Class R6		—			(299	)		—			(18,646	)		—			(13,865	)		—			(181,394	)
Total distributions		—			(7,741	)		—			(36,093	)		—			(227,060	)		—			(181,394	)
Capital stock transactions
Proceeds from sale of shares		3,523			13,948			279,562			383,722			153,639			199,696			119,961			48,760
Shares issued in reinvestment of income dividends and capital gain distributions		—			7,707			—			35,670			—			211,018			—			181,112
Less cost of shares redeemed		(7,927	)		(13,167	)		(169,176	)		(293,194	)		(158,987	)		(572,736	)		(79,485	)		(211,193	)
Net increase (decrease) in net assets resulting from capital share transactions		(4,404	)		8,488			110,386			126,198			(5,348	)		(162,022	)		40,476			18,679
Increase (decrease)in net assets		(48,349	)		21,600			(326,639	)		206,377			(652,404	)		(189,753	)		(348,902	)		(44,639	)
Net assets
Beginning of period		143,782			122,182			1,306,730			1,100,353			2,122,897			2,312,650			1,281,843			1,326,482
End of period	$	95,433		$	143,782		$	980,091		$	1,306,730		$	1,470,493		$	2,122,897		$	932,941		$	1,281,843

See accompanying Notes to Financial Statements.

June 30, 2022

William Blair Funds

Statements of Assets and Liabilities

As of June 30, 2022 (dollar amounts in thousands) (unaudited)

	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	$	275,221		$	434,653		$	685,878		$	364,928
Investments in securities, at value	$	235,725		$	392,823		$	697,361		$	332,568
Foreign currency, at value (cost $27; $2,121; $3,360; $2,473)		27			2,121			3,350			2,452
Receivable for securities sold		2,232			1,389			20,163			2,653
Receivable for fund shares sold		96			128			3,544			351
Receivable from Adviser		—			40			34			32
Dividend and interest receivable		678			1,499			2,474			329
Total assets		238,758			398,000			726,926			338,385
Liabilities
Payable for securities purchased		2,865			—			—			455
Payable for fund shares redeemed		108			25			45			325
Management fee payable		202			312			567			318
Distribution fee payable		—			—			4			1
Foreign capital gains tax liability		—			714			449			—
Other payables and accrued expenses		150			333			604			319
Total liabilities		3,325			1,384			1,669			1,418
Net assets	$	235,433		$	396,616		$	725,257		$	336,967
Capital
Composition of net assets
Paid in capital	$	299,841		$	477,796		$	725,803		$	370,973
Total distributable earnings (loss)		(64,408	)		(81,180	)		(546	)		(34,006	)
Net assets	$	235,433		$	396,616		$	725,257		$	336,967

Class N shares
Net assets	$	1,874		$	937		$	18,168		$	3,237
Shares outstanding		185,319			107,992			1,623,683			188,810
Net asset value per share	$	10.11		$	8.67		$	11.19		$	17.15
Class I shares
Net assets	$	91,547		$	43,103		$	194,090		$	124,190
Shares outstanding		8,910,476			4,957,495			16,994,477			7,150,079
Net asset value per share	$	10.27		$	8.69		$	11.42		$	17.37
Class R6 shares
Net assets	$	142,012		$	352,576		$	512,999		$	209,540
Shares outstanding		13,726,511			40,593,291			44,386,709			12,036,532
Net asset value per share	$	10.35		$	8.69		$	11.56		$	17.41

See accompanying Notes to Financial Statements.

100

Semiannual Report

June 30, 2022

Statements of Operations

For the Period Ended June 30, 2022 (all amounts in thousands) (unaudited)

	International Small Cap Growth Fund				Emerging Markets Leaders Fund				Emerging Markets Growth Fund				Emerging Markets Small Cap Growth Fund
Investment income
Dividends		$	3,164			$	4,757			$	8,358			$	4,094
Less foreign tax withheld			(358	)			(520	)			(964	)			(463	)
Other income			5				1				2				—
Total income			2,811				4,238				7,396				3,631
Expenses
Investment advisory fees			1,448				2,226				4,497				2,299
Distribution fees			3				2				28				5
Custodian fees			73				98				252				206
Transfer agent fees			11				10				30				19
Sub-transfer agent fees
Class N			1				1				15				3
Class I			58				17				97				67
Professional fees			37				44				90				85
Registration fees			26				33				46				25
Shareholder reporting fees			9				4				7				9
Trustee fees			12				12				39				14
Other expenses			10				10				20				13
Total expenses before expense limitation			1,688				2,457				5,121				2,745
Expenses waived or reimbursed by the Adviser
Class N			—				(1	)			(8	)			(2	)
Class I			—				(28	)			(30	)			(51	)
Class R6			—				(189	)			—				(38	)
Total expenses waived or reimbursed by the Adviser			—				(218	)			(38	)			(91	)
Net expenses			1,688				2,239				5,083				2,654
Net investment income (loss)			1,123				1,999				2,313				977
Realized and unrealized gain (loss)
Net realized gain (loss) on transactions from:
Investments in securities (net of foreign capital gains tax paid $— ; $389; $698; $1,603)			(21,894	)			(34,752	)			(4,168	)			(12,527	)
Foreign currency transactions			(139	)			(165	)			(852	)			(325	)
Total net realized gain (loss)			(22,033	)			(34,917	)			(5,020	)			(12,852	)
Change in net unrealized appreciation (depreciation) of:
Investments in securities (net of foreign capital gains tax accrual $—; $(2,025); $(7,221); $(5,681))			(128,360	)			(79,953	)			(284,354	)			(120,649	)
Foreign currency translations			(33	)			(14	)			(63	)			(36	)
Change in net unrealized appreciation (depreciation)			(128,393	)			(79,967	)			(284,417	)			(120,685	)
Net increase (decrease) in net assets resulting from operations		$	(149,303	)		$	(112,885	)		$	(287,124	)		$	(132,560	)

See accompanying Notes to Financial Statements.

June 30, 2022

William Blair Funds

101

Statements of Changes in Net Assets

For the Period Ended June 30, 2022 (unaudited) and 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
		2022			2021			2022			2021			2022			2021			2022			2021
Operations
Net investment income (loss)	$	1,123		$	(1,285	)	$	1,999		$	(611	)	$	2,313		$	(3,469	)	$	977		$	(2,297	)
Net realized gain (loss) on investments, and other assets and liabilities		(22,033	)		50,965			(34,917	)		30,340			(5,020	)		192,407			(12,852	)		57,364
Change in net unrealized appreciation (depreciation) on investments, and other assets and liabilities		(128,393	)		(13,255	)		(79,967	)		(58,106	)		(284,417	)		(147,125	)	��	(120,685	)		(1,751	)
Net increase (decrease) in net assets resulting from operations		(149,303	)		36,425			(112,885	)		(28,377	)		(287,124	)		41,813			(132,560	)		53,316
Distributions to shareholders
Class N		—			(504	)		—			(114	)		—			(5,480	)		—			(333	)
Class I		—			(20,759	)		—			(3,247	)		—			(30,440	)		—			(13,825	)
Class R6		—			(34,265	)		—			(32,392	)		—			(144,353	)		—			(26,855	)
Totaldistributions		—			(55,528	)		—			(35,753	)		—			(180,273	)		—			(41,013	)
*Capital stock transactions*
Proceeds from sale of shares		24,344			65,065			65,827			407,452			178,572			303,585			66,110			242,540
Shares issued in reinvestment of income dividends and capital gain distributions		—			49,466			—			35,512			—			167,335			—			40,338
Less cost of shares redeemed		(23,119	)		(48,798	)		(30,011	)		(167,286	)		(208,029	)		(486,358	)		(96,991	)		(102,182	)
Net increase (decrease) in net assets resulting from capital share transactions		1,225			65,733			35,816			275,678			(29,457	)		(15,438	)		(30,881	)		180,696
Increase (decrease) in net assets		(148,078	)		46,630			(77,069	)		211,548			(316,581	)		(153,898	)		(163,441	)		192,999
Net assets
Beginning of period		383,511			336,881			473,685			262,137			1,041,838			1,195,736			500,408			307,409
End of period	$	235,433		$	383,511		$	396,616		$	473,685		$	725,257		$	1,041,838		$	336,967		$	500,408

See accompanying Notes to Financial Statements.

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Statements of Assets and Liabilities

As of June 30, 2022 (dollar amounts in thousands) (unaudited)

	China Growth Fund			Emerging Markets Debt Fund			Macro Allocation Fund (In Liquidation)
*Assets*
Investments in securities, at cost	$	4,353		$	49,628			$	—
Repurchase agreement, at cost		—			3,343				22,881
Investments in securities, at value	$	3,676		$	39,522			$	—
Repurchase agreement, at value		—			3,343				22,881
Cash		32			—				—
Foreign currency, at value (cost $6; $—; $—)		6			—				—
Segregated cash at broker		—			337				—
Receivable for securities sold		—			162				—
Receivable for fund shares sold		—			25				1
Receivable for variation margin on centrally cleared swaps		—			2				—
Receivable from Adviser		13			22				29
Dividend and interest receivable		1			882				—
Unrealized appreciation on forward foreign currency contracts		—			47				—
Total assets		3,728			44,342				22,911
*Liabilities*
Payable for securities purchased		—			415				—
Payable for fund shares redeemed		—			20				165
Unrealized depreciation on forward foreign currency contracts		—			2				—
Management fee payable		3			24				20
Distribution fee payable		—			—				1
Other payables and accrued expenses		15			33				124
Total liabilities		18			494				310
Net assets	$	3,710		$	43,848			$	22,601
*Capital*
Composition of net assets
Paid in capital	$	5,752		$	58,553			$	202,859
Total distributable earnings (loss)		(2,042	)		(14,705	)			(180,258	)
Net assets	$	3,710		$	43,848			$	22,601

Class N shares
Net assets		—			—			$	3,826
Shares outstanding		—			—				357,799
Net asset value per share		—			—			$	10.69
Class I shares
Net assets	$	2,350		$	883			$	18,647
Shares outstanding		302,404			119,712				1,755,082
Net asset value per share	$	7.77		$	7.38			$	10.62
Class R6 shares
Net assets	$	1,360		$	42,965			$	128
Shares outstanding		175,048			5,825,953				12,063
Net asset value per share	$	7.77		$	7.37			$	10.62

See accompanying Notes to Financial Statements.

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Statements of Operations

For the Period Ended June 30, 2022 (all amounts in thousands) (unaudited)

				Emerging			Macro
	China			Markets			Allocation
	Growth			Debt			Fund (In
	Fund			Fund			Liquidation)
*Investment income*
Dividends	$	41		$	—		$	475
Less foreign tax withheld		(1	)		—			(16	)
Interest		—			1,570			62
Total income		40			1,570			521

Expenses
Investment advisory fees		26			154			531
Distribution fees		—			—			6
Custodian fees		40			60			105
Transfer agent fees		1			1			12
Sub-transfer agent fees
Class N		—			—			3
Class I		1			—			24
Professional fees		18			21			15
Registration fees		8			17			7
Shareholder reporting fees		—			1			2
Trustee fees		—			2			12
Other expenses		1			3			18
Interest expense		—			—			28
Total expenses before expense limitation		95			259			763
Expenses waived or reimbursed by the Adviser
Class N		—			—			(7	)
Class I		(49	)		(3	)		(49	)
Class R6		(18	)		(101	)		(30	)
Total expenses waived or reimbursed by the Adviser		(67	)		(104	)		(86	)
Net expenses		28			155			677
Net investment income (loss)		12			1,415			(156	)
Realized and unrealized gain (loss)
Net realized gain (loss) on transactions from:
Investments in securities		(1,332	)		(5,169	)		7,983
Options		—			—			(2,753	)
Futures contracts		—			—			14,239
Swaps		—			471			(2,085	)
Forward foreign currency contracts		—			150			(496	)
Foreign currency transactions		(5	)		3			(100	)
Total net realized gain (loss)		(1,337	)		(4,545	)		16,788
Change in net unrealized appreciation (depreciation) of:
Investments in securities		(246	)		(8,102	)		(21,195	)
Futures contracts		—			—			1,592
Swaps		—			136			(126	)
Forward foreign currency contracts		—			71			1,857
Foreign currency translations		—			14			47
Change in net unrealized appreciation (depreciation)		(246	)		(7,881	)		(17,825	)
Net increase (decrease) in net assets resulting from operations	$	(1,571	)	$	(11,011	)	$	(1,193	)

See accompanying Notes to Financial Statements.

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Statements of Changes in Net Assets

For the Period Ended June 30, 2022 (unaudited) and the Year Ended December 31, 2021 (all amounts in thousands)

	China Growth Fund						Emerging Markets Debt Fund						Macro Allocation Fund (In Liquidation)
	2022			2021(a)			2022			2021(b)			2022			2021
*Operations*
Net investment income (loss)	$	12		$	(14	)	$	1,415		$	1,200		$	(156	)	$	2,133
Net realized gain (loss) on investments, and other assets and liabilities		(1,337	)		(39	)		(4,545	)		(227	)		16,788			40,148
Change in net unrealized appreciation (depreciation) on investments, and other assets and liabilities		(246	)		(431	)		(7,881	)		(1,954	)		(17,825	)		(35,584	)
Net increase (decrease) in net assets resulting from operations		(1,571	)		(484	)		(11,011	)		(981	)		(1,193	)		6,697
*Distributions to shareholders*
Class N		—			—			—			—			—			(149	)
Class I		—			—			(41	)		(35	)		—			(1,803	)
Class R6		—			—			(1,409	)		(1,228	)		—			(2,923	)
Total distributions		—			—			(1,450	)		(1,263	)		—			(4,875	)
*Capital stock transactions*
Proceeds from sale of shares		134			7,722			4,218			52,600			4,407			17,989
Shares issued in reinvestment of income dividends and capital gain distributions		—			—			1,435			1,275			—			4,799
Less cost of shares redeemed		(2,078	)		(13	)		(838	)		(137	)		(169,409	)		(189,529	)
Net increase (decrease) in net assets resulting from capital share transactions		(1,944	)		7,709			4,815			53,738			(165,002	)		(166,741	)
Increase (decrease) in net assets		(3,515	)		7,225			(7,646	)		51,494			(166,195	)		(164,919	)
*Net assets*
Beginning of period		7,225			—			51,494			—			188,796			353,715
End of period	$	3,710		$	7,225		$	43,848		$	51,494		$	22,601		$	188,796

(a)	For the period from August 27, 2021 (Commencement of Operations) to December 31, 2021.
(b)	For the period from May 25, 2021 (Commencement of Operations) to December 31, 2021.

See accompanying Notes to Financial Statements.

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Notes to Financial Statements (information as of June 30, 2022 is unaudited)

(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 nineteen 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

Mid Cap Value

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

Emerging Markets Debt Fund

Emerging Markets Debt

Multi-Asset and Alternative Fund

Macro Allocation

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.

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

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Notes to Financial Statements (information as of June 30, 2022 is unaudited)

	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 Mid Cap Value, 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 all Funds as discussed in Note 4(b) – Transactions with Affiliates – Underwriting and Distribution Services 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.

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Notes to Financial Statements (information as of June 30, 2022 is unaudited)

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.
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 Emerging Markets Debt Fund were the rates in effect on June 30, 2022. 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.

For the period ended June 30, 2022, the International Growth and Institutional International Growth Funds received European Union tax reclaim payments, including interest, of $6,383 and $2,800, respectively (in thousands), relating to amounts withheld on dividends received by the Funds during the fiscal years ended December 31, 2009 through 2014. The amounts withheld on dividends were not previously passed through to the Funds’ shareholders in the years the dividends were received by the Funds. The payments received are included within other income in the Statement of Operations.

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.

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Notes to Financial Statements (information as of June 30, 2022 is unaudited)

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 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.

(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,

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Notes to Financial Statements (information as of June 30, 2022 is unaudited)

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 June 30, 2022, were as follows (in thousands):

Fund	Cost of Investments		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Net Unrealized Appreciation/ (Depreciation)
Growth	$	164,027	$	87,176	$	26,438	$	60,738
Large Cap Growth		1,112,998		82,609		120,929		(38,320	)
Mid Cap Growth		39,078		5,373		9,061		(3,688	)
Mid Cap Value		1,563		6		217		(211	)
Small-Mid Cap Core		138,009		3,105		23,159		(20,054	)
Small-Mid Cap Growth		2,201,557		286,245		367,934		(81,689	)
Small Cap Growth		524,030		74,990		106,600		(31,610	)
Small Cap Value		1,308,670		125,368		169,355		(43,987	)
Global Leaders		71,745		27,507		4,948		22,559
International Leaders		987,878		91,402		105,409		(14,007	)
International Growth		1,293,408		276,773		105,577		171,196
Institutional International Growth		832,463		159,012		61,297		97,715

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Notes to Financial Statements (information as of June 30, 2022 is unaudited)

Fund	Cost of Investments		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Net Unrealized Appreciation/ (Depreciation)
International Small Cap Growth		277,484		13,667		55,426		(41,759	)
Emerging Markets Leaders		445,494		15,646		68,317		(52,671	)
Emerging Markets Growth		701,023		55,753		59,415		(3,662	)
Emerging Markets Small Cap Growth		374,442		20,522		62,396		(41,874	)
China Growth		4,399		62		785		(723	)
Emerging Markets Debt		53,458		269		10,615		(10,344	)
Macro Allocation		22,881		—		—		—

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		—
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
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		—
Macro Allocation		2,498		—

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Notes to Financial Statements (information as of June 30, 2022 is unaudited)

(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) 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.

(i) 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.

(j) 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.

(k) 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 period ended June 30, 2022, the Small-Mid Cap Growth and Small Cap Value Funds redeemed $19,912 and $579,643 (in thousands), respectively, of fund shares in-kind rather than with cash and recognized net realized gains of $3,930 and $201,191 (in thousands), respectively, 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.

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Notes to Financial Statements (information as of June 30, 2022 is unaudited)

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 June 30, 2022, 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), 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.

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113

Notes to Financial Statements (information as of June 30, 2022 is unaudited)

•

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 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.

114

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Notes to Financial Statements (information as of June 30, 2022 is unaudited)

As of June 30, 2022, 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).

Investments in securities	Growth		Large Cap Growth		Mid Cap Growth		Mid Cap Value
Level 1—Quoted prices
Common Stocks	$	219,802	$	1,061,641	$	34,698	$	1,352
Level 2—Other significant observable inputs
Repurchase Agreements		4,963		13,037		692		—
Level 3—Significant unobservable inputs
None		—		—		—		—
Total investments in securities	$	224,765	$	1,074,678	$	35,390	$	1,352

Investments in securities	Small-Mid Cap Core		Small-Mid Cap Growth		Small Cap Growth		Small Cap Value
Level 1—Quoted prices
Common Stocks	$	114,830	$	2,068,376	$	479,691	$	1,255,009
Level 2—Other significant observable inputs
Repurchase Agreements		3,125		51,492		12,729		9,674
Level 3—Significant unobservable inputs
None		—		—		—		—
Total investments in securities	$	117,955	$	2,119,868	$	492,420	$	1,264,683

Investments in securities	Global Leaders		International Leaders		International Growth		Institutional International Growth
Level 1—Quoted prices
Common Stocks	$	93,674	$	951,348	$	1,399,794	$	905,729
Level 2—Other significant observable inputs
Repurchase Agreements		630		22,523		64,810		24,449
Level 3—Significant unobservable inputs
None		—		—		—		—
Total investments in securities	$	94,304	$	973,871	$	1,464,604	$	930,178

Investments in securities	International Small Cap Growth		Emerging Markets Leaders		Emerging Markets Growth		Emerging Markets Small Cap Growth
Level 1—Quoted prices
Common Stocks	$	229,286	$	384,938	$	666,443	$	316,910
Level 2—Other significant observable inputs
Common Stocks		—		4,622		16,449		12,957
Repurchase Agreements		6,439		3,263		14,469		2,701
Level 3—Significant unobservable inputs
None		—		—		—		—
Total investments in securities	$	235,725	$	392,823	$	697,361	$	332,568

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115

Notes to Financial Statements (information as of June 30, 2022 is unaudited)

Investments in securities	China Growth		Emerging Markets Debt			Macro Allocation
Assets
Level 1—Quoted prices
Common Stocks	$	3,676	$	—		$	—
Level 2—Other significant observable inputs
Foreign Corporate Obligations		—		12,811			—
Foreign Government Bonds		—		26,188			—
Foreign Municipal Bonds		—		523			—
Repurchase Agreements		—		3,343			22,881
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	$	3,676	$	42,865		$	22,881
Other financial instruments
Assets
Level 1—Quoted prices
None	$	—	$	—		$	—
Level 2—Other significant observable inputs
Forward Foreign Currency Contracts		—		47			—
Swaps		—		626			—
Level 3—Significant unobservable inputs
None		—		—			—
Liabilities
Level 1—Quoted prices
None		—		—			—
Level 2—Other significant observable inputs
Forward Foreign Currency Contracts		—		(2	)		—
Swaps		—		(412	)		—
Level 3—Significant unobservable inputs
None		—		—			—
Total other financial instruments	$	—	$	259		$	—

See Portfolio of Investments for Sector Classification.

116

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Notes to Financial Statements (information as of June 30, 2022 is unaudited)

(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	%
Mid Cap Value	0.70	%
Small-Mid Cap Core	0.90	%
Small-Mid Cap Growth	1.00	%
Small Cap Growth	1.10	%
Small Cap Value	0.75	%

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 Fund¹:
First $3 billion	0.94	%
Next $2 billion	0.90	%
Next $5 billion	0.85	%
Next $5 billion	0.825	%
In excess of $15 billion	0.80	%
Institutional International Growth Fund²:
First $1.875 billion	0.94	%
Next $625 million	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 Leaders³	0.94	%
Emerging Markets Growth⁴	0.94	%
Emerging Markets Small Cap Growth	1.10	%
China Growth⁵	0.94	%

1	Prior to May 1, 2022, the International Growth Fund paid a management fee at a rate of 1.10% of the first $250 million of the Fund’s average daily net assets; plus 1.00% of the next $2.25 billion of the Fund’s average daily net assets; plus 0.975% of the next $2.5 billion of the Fund’s average daily net assets; plus 0.95% of the next $5 billion of the Fund’s average daily net assets; plus 0.925% of the next $5 billion of the Fund’s average daily net assets; plus 0.90% of the Fund’s average daily net assets over $15 billion. Effective May 1, 2022, the management fee paid to the Adviser was reduced to 0.94% of the first $3 billion of the Fund’s average daily net assets; plus 0.90% of the next $2 billion of the Fund’s average daily net assets; plus 0.85% of the next $5 billion of the Fund’s average daily net assets; plus 0.825% of the next $5 billion of the Fund’s average daily net assets; plus 0.80% of the Fund’s average daily net assets over $15 billion.
2	Prior to May 1, 2022, the Institutional International Growth Fund paid a management fee at a rate of 1.00% of the first $500 million of the Fund’s average daily net assets; plus 0.95% of the next $500 million of the Fund’s average daily net assets; plus 0.90% of the next $1.5 billion of the Fund’s average daily net assets; plus 0.875% of the next $2.5 billion of the Fund’s average daily net assets; plus 0.85% of the next $5 billion of the Fund’s average daily net assets; plus 0.825% of the next $5 billion of the Fund’s average daily net assets; plus 0.80% of the Fund’s average daily net assets over $15 billion. Effective May 1, 2022, the management fee paid to the Adviser was reduced to 0.94% of the first $1.875 billion of the Fund’s average daily net assets; plus 0.90% of the next $625 million of the Fund’s average daily net assets; plus 0.875% of the next $2.5 billion of the Fund’s average daily net assets; plus 0.85% of the next $5 billion of the Fund’s average daily net assets; plus 0.825% of the next $5 billion of the Fund’s average daily net assets; plus 0.80% of the Fund’s average daily net assets over $15 billion.
3	Prior to May 1, 2022, the Emerging Markets Leaders Fund paid a management fee at a rate of 1.10% of the Fund’s average daily net assets. Effective May 1, 2022, the management fee paid to the Adviser was reduced to 0.94%.
4	Prior to May 1, 2022, the Emerging Markets Growth Fund paid a management fee at a rate of 1.10% of the Fund’s average daily net assets. Effective May 1, 2022, the management fee paid to the Adviser was reduced to 0.94%.
5	Prior to May 1, 2022, the China Growth Fund paid a management fee at a rate of 1.00% of the Fund’s average daily net assets. Effective May 1, 2022, the management fee paid to the Adviser was reduced to 0.94%.

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117

Notes to Financial Statements (information as of June 30, 2022 is unaudited)

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, 2023. 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
Fund	Effective May 1, 2022 through April 30, 2023			Effective May 1, 2021 through April 30, 2022			Effective May 1, 2022 through April 30, 2023			Effective May 1, 2021 through April 30, 2022			Effective May 1, 2022 through April 30, 2023			Effective May 1, 2021 through April 30, 2022
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	%
Mid Cap Value		N/A			N/A			0.75	%²		0.75	%¹		0.70	%²		0.70	%¹
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	%		1.15	%³		0.89	%		0.89	%		0.85	%		0.85	%³
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		1.24	%		1.45	%		0.99	%		1.20	%		0.94	%		1.15	%
Institutional International Growth		N/A			N/A			N/A			N/A			0.94	%		1.05	%
International Small Cap Growth		1.55	%		1.55	%		1.30	%		1.30	%		1.25	%		1.25	%
Emerging Markets Leaders		1.24	%		1.40	%		0.99	%		1.15	%		0.94	%		1.10	%
Emerging Markets Growth		1.24	%		1.60	%		0.99	%		1.35	%		0.94	%		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			0.99	%		1.05	%⁴		0.94	%		1.00	%⁴
Emerging Markets Debt		N/A			N/A			0.70	%		0.70	%⁵		0.65	%		0.65	%⁵
Macro Allocation		1.25	%		1.25	%		1.00	%		1.00	%		0.95	%		0.95	%

1	Effective March 16, 2022 (Commencement of Operations).
2	Effective through April 30, 2024.
3	Effective July 17, 2021 (Commencement of Operations).
4	Effective August 27, 2021 (Commencement of Operations).
5	Effective May 25, 2021 (Commencement of Operations).

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 June 30, 2022 were as follows (in thousands):

Fund	Available for Recoupment		Expiration of Recoupment
Mid Cap Value		$ 32	March 16, 2025
Small-Mid Cap Core		684	October 1, 2022
China Growth		123	August 27, 2024
Emerging Markets Debt		238	May 25, 2024

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Notes to Financial Statements (information as of June 30, 2022 is unaudited)

(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 Mid Cap Value, 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. 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.

(5) Investment Transactions

Investment transactions, excluding short-term securities, for the period ended June 30, 2022, were as follows (in thousands):

Fund	Purchases		Sales
Growth	$	37,645	$	63,660
Large Cap Growth		526,821		133,833
Mid Cap Growth		7,931		8,389
Mid Cap Value (a)		1,633		63
Small-Mid Cap Core		88,777		34,230
Small-Mid Cap Growth		584,087		645,521
Small Cap Growth		141,225		161,202
Small Cap Value		225,149		780,404
Global Leaders		5,885		8,316
International Leaders		447,124		339,712
International Growth		421,612		434,759
Institutional International Growth		333,421		283,882
International Small Cap Growth		90,182		87,873
Emerging Markets Leaders		122,453		84,787
Emerging Markets Growth		399,982		454,980
Emerging Markets Small Cap Growth		207,775		241,632
China Growth		1,276		3,165
Emerging Markets Debt		36,083		31,127
Macro Allocation		7,292		161,220

(a)	For the period from March 16, 2022 (Commencement of Operations) to June 30, 2022.

(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 June 30, 2022, as disclosed in each Fund’s Portfolios of Investments, are representative of each Fund’s derivative instrument trading activity during the period ended June 30, 2022.

June 30, 2022

William Blair Funds

119

Notes to Financial Statements (information as of June 30, 2022 is unaudited)

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 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.

120

Semiannual Report

June 30, 2022

Notes to Financial Statements (information as of June 30, 2022 is unaudited)

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.

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.

June 30, 2022

William Blair Funds

121

Notes to Financial Statements (information as of June 30, 2022 is unaudited)

The following table presents the value of financial derivative instruments, by Fund and primary risk exposure, as of June 30, 2022, 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

Emerging Markets Debt

Credit

Receivable for variation margin on centrally cleared swaps⁽¹⁾

$124

Payable for variation margin on centrally cleared swaps⁽¹⁾

$121

Currency

Unrealized appreciation on forward foreign currency contracts

Unrealized depreciation on forward foreign currency contracts)

Interest rate

Receivable for variation margin on centrally cleared swaps⁽¹⁾

502

Payable for variation margin on centrally cleared swaps⁽¹⁾

291

⁽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.

The following table indicates the effect of derivatives, by Fund and primary risk exposure, in the Statements of Operations for the period ended June 30, 2022 (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
Emerging Markets Debt
Credit	Swaps		$ 251		Swaps		$ (8	)
Currency	Forward foreign currency contracts		150		Forward foreign currency contracts		71
Interest rate	Swaps		220		Swaps		144
Macro Allocation
Credit	Swaps		(56	)	Swaps		—
Currency	Forward foreign currency contracts		(496	)	Forward foreign currency contracts		1,857
Equity	Futures contracts		13,351		Futures contracts		1,891
Equity	Options		(2,753	)	Options		—
Equity	Swaps		(1,641	)	Swaps		(177	)
Interest rate	Futures contracts		888		Futures contracts		(299	)
Interest rate	Swaps		(388	)	Swaps		51

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 June 30, 2022 (in thousands):

	Financial Derivative Assets				Financial Derivative Liabilities
Counterparty	Forward Foreign Currency Contracts		Total		Forward Foreign Currency Contracts		Total		Net Market Value		Collateral Pledged (Received)		Net Exposure
Emerging Markets Debt
Citibank N.A.		$47		$47		$(2)		$(2)		$45		$—		$45
		$47		$47		$(2)		$(2)

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.

122

Semiannual Report

June 30, 2022

Notes to Financial Statements (information as of June 30, 2022 is unaudited)

(7) Fund Share Transactions

The following tables summarize the activity in capital shares of each Fund for the period ended June 30, 2022 (in thousands):

	Class N
	Dollars									Shares
Fund	Sales		Reinvest		Redemptions		Total			Sales		Reinvest		Redemptions		Total
Growth	$	2,920	$	—	$	4,130	$	(1,210	)		262		—		395		(133	)
Large Cap Growth		38,158		—		46,936		(8,778	)		1,826		—		2,424		(598	)
Mid Cap Growth		88		—		521		(433	)		9		—		46		(37	)
Small-Mid Cap Growth		10,287		—		37,670		(27,383	)		370		—		1,387		(1,017	)
Small Cap Growth		23,504		—		45,275		(21,771	)		832		—		1,686		(854	)
Small Cap Value		157		—		400		(243	)		5		—		13		(8	)
Global Leaders		214		—		1,117		(903	)		12		—		72		(60	)
International Leaders		12,019		—		9,086		2,933			587		—		453		134
International Growth		4,338		—		13,039		(8,701	)		142		—		436		(294	)
International Small Cap Growth		12		—		402		(390	)		—		—		29		(29	)
Emerging Markets Leaders		2,844		—		3,616		(772	)		288		—		365		(77	)
Emerging Markets Growth		6,391		—		9,365		(2,974	)		474		—		687		(213	)
Emerging Markets Small Cap Growth		517		—		333		184			24		—		16		8
Macro Allocation		471		—		3,290		(2,819	)		43		—		302		(259	)

	Class I
	Dollars									Shares
Fund	Sales		Reinvest		Redemptions		Total			Sales		Reinvest		Redemptions		Total
Growth	$	7,832	$	—	$	34,501	$	(26,669	)		605		—		2,716		(2,111	)
Large Cap Growth		487,615		—		133,456		354,159			22,449		—		6,608		15,841
Mid Cap Growth		2,717		—		3,184		(467	)		238		—		265		(27	)
Mid Cap Value (a)		54		—		—		54			5		—		—		5
Small-Mid Cap Core		66,064		—		15,096		50,968			4,257		—		1,029		3,228
Small-Mid Cap Growth		198,807		—		376,148		(177,341	)		6,760		—		12,951		(6,191	)
Small Cap Growth		43,030		—		46,187		(3,157	)		1,329		—		1,498		(169	)
Small Cap Value		59,657		—		86,783		(27,126	)		1,895		—		2,777		(882	)
Global Leaders		3,297		—		6,526		(3,229	)		209		—		429		(220	)
International Leaders		103,814		—		131,984		(28,170	)		5,278	��	—		6,506		(1,228	)
International Growth		146,031		—		135,139		10,892			4,803		—		4,361		442
International Small Cap Growth		22,249		—		12,625		9,624			1,819		—		1,037		782
Emerging Markets Leaders		21,874		—		10,630		11,244			2,307		—		1,122		1,185
Emerging Markets Growth		136,387		—		70,389		65,998			10,366		—		5,419		4,947
Emerging Markets Small Cap Growth		22,600		—		23,734		(1,134	)		1,096		—		1,176		(80	)
China Growth		6		—		1,956		(1,950	)		1		—		279		(278	)
Emerging Markets Debt		354		40		648		(254	)		41		5		81		(35	)
Macro Allocation		3,936		—		51,784		(47,848	)		362		—		4,859		(4,497	)

(a)	For the period from March 16, 2022 (Commencement of Operations) to June 30, 2022.


June 30, 2022	William Blair Funds	123

Notes to Financial Statements (information as of June 30, 2022 is unaudited)

	Institutional/Class R6
	Dollars									Shares
Fund	Sales		Reinvest		Redemptions		Total			Sales		Reinvest		Redemptions		Total
Growth	$	967	$	—	$	583	$	384			76		—		46		30
Large Cap Growth		79,042		—		21,556		57,486			3,800		—		1,031		2,769
Mid Cap Growth		10		—		7		3			1		—		1		—
Mid Cap Value (a)		1,530		—		—		1,530			151		—		—		151
Small-Mid Cap Core		5,437		—		481		4,956			367		—		32		335
Small-Mid Cap Growth		110,279		—		15,393		94,886			4,133		—		520		3,613
Small Cap Growth		16,873		—		11,602		5,271			517		—		365		152
Small Cap Value		44,940		—		595,305		(550,365	)		1,439		—		17,608		(16,169	)
Global Leaders		12		—		284		(272	)		1		—		18		(17	)
International Leaders		163,729		—		28,106		135,623			7,338		—		1,508		5,830
International Growth		3,270		—		10,809		(7,539	)		99		—		351		(252	)
Institutional International Growth		119,961		—		79,485		40,476			8,566		—		5,228		3,338
International Small Cap Growth		2,083		—		10,092		(8,009	)		160		—		826		(666	)
Emerging Markets Leaders		41,109		—		15,765		25,344			4,286		—		1,577		2,709
Emerging Markets Growth		35,794		—		128,275		(92,481	)		2,633		—		9,519		(6,886	)
Emerging Markets Small Cap Growth		42,993		—		72,924		(29,931	)		2,100		—		3,660		(1,560	)
China Growth		128		—		122		6			15		—		17		(2	)
Emerging Markets Debt		3,864		1,395		190		5,069			464		168		23		609
Macro Allocation		—		—		114,335		(114,335	)		—		—		10,696		(10,696	)

	Net Change in Net Assets Relating to Fund Share Activity
	Dollars									Shares
Fund	Sales		Reinvest		Redemptions		Total			Sales		Reinvest		Redemptions		Total
Growth	$	11,719	$	—	$	39,214	$	(27,495	)		943		—		3,157		(2,214	)
Large Cap Growth		604,815		—		201,948		402,867			28,075		—		10,063		18,012
Mid Cap Growth		2,815		—		3,712		(897	)		248		—		312		(64	)
Mid Cap Value (a)		1,584		—		—		1,584			156		—		—		156
Small-Mid Cap Core		71,501		—		15,577		55,924			4,624		—		1,061		3,563
Small-Mid Cap Growth		319,373		—		429,211		(109,838	)		11,263		—		14,858		(3,595	)
Small Cap Growth		83,407		—		103,064		(19,657	)		2,678		—		3,549		(871	)
Small Cap Value		104,754		—		682,488		(577,734	)		3,339		—		20,398		(17,059	)
Global Leaders		3,523		—		7,927		(4,404	)		222		—		519		(297	)
International Leaders		279,562		—		169,176		110,386			13,203		—		8,467		4,736
International Growth		153,639		—		158,987		(5,348	)		5,044		—		5,148		(104	)
Institutional International Growth		119,961		—		79,485		40,476			8,566		—		5,228		3,338
International Small Cap Growth		24,344		—		23,119		1,225			1,979		—		1,892		87
Emerging Markets Leaders		65,827		—		30,011		35,816			6,881		—		3,064		3,817
Emerging Markets Growth		178,572		—		208,029		(29,457	)		13,473		—		15,625		(2,152	)
Emerging Markets Small Cap Growth		66,110		—		96,991		(30,881	)		3,220		—		4,852		(1,632	)
China Growth		134		—		2,078		(1,944	)		16		—		296		(280	)
Emerging Markets Debt		4,218		1,435		838		4,815			505		173		104		574
Macro Allocation		4,407		—		169,409		(165,002	)		405		—		15,857		(15,452	)

(a)	For the period from March 16, 2022 (Commencement of Operations) to June 30, 2022.


124	Semiannual Report	June 30, 2022

Notes to Financial Statements (information as of June 30, 2022 is unaudited)

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
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
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.


June 30, 2022	William Blair Funds	125

Notes to Financial Statements (information as of June 30, 2022 is unaudited)

	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
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
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.


126	Semiannual Report	June 30, 2022

Notes to Financial Statements (information as of June 30, 2022 is unaudited)

The following tables summarize the activity in capital shares of the Small Cap Value Fund for the year ended October 31, 2021 (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

(a)	For the period from July 17, 2021 (Commencement of Operations) to October 31, 2021.

(8) Subsequent Events

Upon recommendation of the Adviser, the Board of Trustees determined that it was in the best interest of Macro Allocation Fund to redeem all shares of Macro Allocation Fund outstanding on or before July 29, 2022, and then to terminate Macro Allocation Fund. All outstanding shares of Macro Allocation Fund were redeemed on July 29, 2022.

The Board of Trustees approved a change to the investment objective of Emerging Markets Debt Fund. Effective October 3, 2022, the investment objective of Emerging Markets Debt Fund will change to “The Emerging Markets Debt Fund seeks to provide attractive risk-adjusted returns relative to the Fund’s benchmark.”

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.

June 30, 2022

William Blair Funds

127

Financial Highlights — For a share outstanding throughout each period

Growth Fund

	Class N
	(unaudited) Period Ended June 30,				Years Ended December 31,
	2022				2021			2020			2019			2018			2017
Net asset value, beginning of year		$	11.81		$	11.15		$	9.45		$	7.91		$	10.27		$	11.41
Income (loss) from investment operations:
Net investment income (loss)			(0.03	)		(0.08	)		(0.05	)		(0.03	)		(0.04	)		(0.02	)
Net realized and unrealized gain (loss) on investments			(3.34	)		2.49			3.43			2.54			0.75			2.78
Total from investment operations			(3.37	)		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		$	8.44		$	11.81		$	11.15		$	9.45		$	7.91		$	10.27
Total return (%)*			(28.54	)		22.09			35.97			31.97			5.10			24.35
Ratios to average daily net assets (%)**:
Expenses, before waivers and reimbursements			1.24			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			1.20
Net investment income (loss), before waivers and reimbursements			(0.65	)		(0.67	)		(0.55	)		(0.35	)		(0.36	)		(0.14	)
Net investment income (loss), net of waivers and reimbursements			(0.61	)		(0.66	)		(0.49	)		(0.31	)		(0.34	)		(0.14	)
Class N net assets at the end of the year (in thousands)		$	25,185		$	36,807		$	35,494		$	32,710		$	38,370		$	34,886
Portfolio turnover rate (%)*			15			30			46			39			46			38

	Class I
	(unaudited) Period Ended June 30,				Years Ended December 31,
	2022				2021			2020			2019			2018			2017
Net asset value, beginning of year		$	14.91		$	13.64		$	11.25		$	9.25		$	11.51		$	12.39
Income (loss) from investment operations:
Net investment income (loss)			(0.02	)		(0.05	)		(0.03	)		(0.00	)^		(0.01	)		0.02
Net realized and unrealized gain (loss) on investments			(4.22	)		3.07			4.10			2.97			0.82			3.02
Total from investment operations			(4.24	)		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		$	10.67		$	14.91		$	13.64		$	11.25		$	9.25		$	11.51
Total return (%)*			(28.44	)		22.54			36.35			32.32			5.42			24.64
Ratios to average daily net assets (%)**:
Expenses			0.92			0.89			0.93			0.92			0.91			0.92
Net investment income (loss)			(0.34	)		(0.35	)		(0.23	)		(0.03	)		(0.06	)		0.12
Class I net assets at the end of the year (in thousands)		$	187,817		$	293,900		$	249,716		$	220,660		$	187,306		$	318,848
Portfolio turnover rate (%)*			15			30			46			39			46			38

*	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.


128	Semiannual Report	June 30, 2022

Financial Highlights — For a share outstanding throughout each period

Growth Fund

	Class R6
	(unaudited) Period Ended June 30,				Years Ended December 31,
	2022				2021			2020			2019(a)
Net asset value, beginning of year		$	14.95		$	13.67		$	11.26		$	11.06
Income (loss) from investment operations:
Net investment income (loss)			(0.02	)		(0.04	)		(0.03	)		(0.00	)^
Net realized and unrealized gain (loss) on investments			(4.22	)		3.07			4.12			1.17
Total from investment operations			(4.24	)		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		$	10.71		$	14.95		$	13.67		$	11.26
Total return (%)*			(28.36	)		22.55			36.50			10.75
Ratios to average daily net assets (%)**:
Expenses			0.86			0.84			0.87			0.88
Net investment income (loss)			(0.27	)		(0.29	)		(0.23	)		(0.06	)
Class R6 net assets at the end of the year (in thousands)		$	11,054		$	14,993		$	12,041		$	217
Portfolio turnover rate (%)*			15			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.


June 30, 2022	William Blair Funds	129

Financial Highlights — For a share outstanding throughout each period

Large Cap Growth Fund

	Class N
	(unaudited) Period Ended June 30,				Years Ended December 31,
	2022				2021			2020			2019			2018			2017
Net asset value, beginning of year		$	24.49		$	20.03		$	15.27		$	11.99		$	13.35		$	10.26
Income (loss) from investment operations:
Net investment income (loss)			(0.03	)		(0.07	)		0.01			0.00	^		(0.02	)		(0.02	)
Net realized and unrealized gain (loss) on investments			(7.76	)		5.65			5.52			4.29			0.81			3.19
Total from investment operations			(7.79	)		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		$	16.70		$	24.49		$	20.03		$	15.27		$	11.99		$	13.35
Total return (%)*			(31.81	)		28.03			36.30			36.00			4.96			30.88
Ratios to average daily net assets (%)**:
Expenses, before waivers and reimbursements			1.05			1.05			1.09			1.12			1.21			1.19
Expenses, net of waivers and reimbursements			0.90			0.90			0.90			0.95			1.05			1.05
Net investment income (loss), before waivers and reimbursements			(0.42	)		(0.46	)		(0.15	)		(0.14	)		(0.33	)		(0.27	)
Net investment income (loss), net of waivers and reimbursements			(0.27	)		(0.31	)		0.04			0.03			(0.17	)		(0.13	)
Class N net assets at the end of the year (in thousands)		$	128,452		$	203,014		$	138,152		$	65,314		$	41,361		$	25,604
Portfolio turnover rate (%)*			13			26			35			37			47			29

	Class I
	(unaudited) Period Ended June 30,				Years Ended December 31,
	2022				2021			2020			2019			2018			2017
Net asset value, beginning of year		$	26.18		$	21.29		$	16.19		$	12.66		$	13.97		$	10.70
Income (loss) from investment operations:
Net investment income (loss)			(0.00	)^		(0.02	)		0.06			0.04			0.01			0.02
Net realized and unrealized gain (loss) on investments			(8.31	)		6.03			5.85			4.54			0.85			3.33
Total from investment operations			(8.31	)		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		$	17.87		$	26.18		$	21.29		$	16.19		$	12.66		$	13.97
Total return (%)*			(31.74	)		28.39			36.59			36.35			5.21			31.29
Ratios to average daily net assets (%)**:
Expenses, before waivers and reimbursements			0.75			0.75			0.80			0.81			0.90			0.90
Expenses, net of waivers and reimbursements			0.65			0.65			0.65			0.70			0.80			0.80
Net investment income (loss), before waivers and reimbursements			(0.11	)		(0.17	)		0.16			0.16			(0.01	)		0.03
Net investment income (loss), net of waivers and reimbursements			(0.01	)		(0.07	)		0.31			0.27			0.09			0.13
Class I net assets at the end of the year (in thousands)		$	739,937		$	669,060		$	397,370		$	236,930		$	137,599		$	177,959
Portfolio turnover rate (%)*			13			26			35			37			47			29

*	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.


130	Semiannual Report	June 30, 2022

Financial Highlights — For a share outstanding throughout each period

Large Cap Growth Fund

	Class R6
	(unaudited) Period Ended June 30,				Years Ended December 31,
	2022				2021			2020			2019(a)
Net asset value, beginning of year		$	26.16		$	21.27		$	16.17		$	15.12
Income (loss) from investment operations:
Net investment income (loss)			(0.00	)^		(0.00	)^		0.01			0.04
Net realized and unrealized gain (loss) on investments			(8.30	)		6.01			5.91			2.07
Total from investment operations			(8.30	)		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		$	17.86		$	26.16		$	21.27		$	16.17
Total return (%)*			(31.73	)		28.42			36.70			14.13
Ratios to average daily net assets (%)**:
Expenses, before waivers and reimbursements			0.65			0.67			0.70			0.71
Expenses, net of waivers and reimbursements			0.60			0.60			0.60			0.60
Net investment income (loss), before waivers and reimbursements			(0.02	)		(0.08	)		(0.03	)		0.22
Net investment income (loss), net of waivers and reimbursements			0.03			(0.01	)		0.07			0.33
Class R6 net assets at the end of the year (in thousands)		$	209,253		$	233,946		$	177,347		$	1,590
Portfolio turnover rate (%)*			13			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.


June 30, 2022	William Blair Funds	131

Financial Highlights — For a share outstanding throughout each period

Mid Cap Growth Fund

	Class N
	(unaudited) Period Ended June 30,				Years Ended December 31,
	2022				2021			2020			2019			2018			2017
Net asset value, beginning of year		$	13.29		$	12.89		$	10.99		$	8.87		$	10.92		$	10.69
Income (loss) from investment operations:
Net investment income (loss)			(0.05	)		(0.12	)		(0.08	)		(0.05	)		(0.06	)		(0.08	)
Net realized and unrealized gain (loss) on investments			(4.21	)		1.13			3.01			3.22			0.03			2.29
Total from investment operations			(4.26	)		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		$	9.03		$	13.29		$	12.89		$	10.99		$	8.87		$	10.92
Total return (%)*			(32.05	)		8.10			26.80			36.02			(1.20	)		20.88
Ratios to average daily net assets (%)**:
Expenses, before waivers and reimbursements			1.69			1.48			1.54			1.51			1.57			1.49
Expenses, net of waivers and reimbursements			1.20			1.20			1.20			1.20			1.23			1.30
Net investment income (loss), before waivers and reimbursements			(1.35	)		(1.14	)		(1.06	)		(0.79	)		(0.85	)		(0.84	)
Net investment income (loss), net of waivers and reimbursements			(0.86	)		(0.86	)		(0.72	)		(0.48	)		(0.51	)		(0.65	)
Class N net assets at the end of the year (in thousands)		$	3,384		$	5,480		$	6,074		$	5,465		$	4,944		$	6,166
Portfolio turnover rate (%)*			20			47			45			43			58			59

	Class I
	(unaudited) Period Ended June 30,				Years Ended December 31,
	2022				2021			2020			2019			2018			2017
Net asset value, beginning of year		$	14.67		$	14.13		$	11.93		$	9.55		$	11.57		$	11.20
Income (loss) from investment operations:
Net investment income (loss)			(0.04	)		(0.09	)		(0.06	)		(0.03	)		(0.03	)		(0.05	)
Net realized and unrealized gain (loss) on investments			(4.65	)		1.24			3.29			3.46			0.03			2.40
Total from investment operations			(4.69	)		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		$	9.98		$	14.67		$	14.13		$	11.93		$	9.55		$	11.57
Total return (%)*			(31.97	)		8.38			27.21			36.17			(0.86	)		21.18
Ratios to average daily net assets (%)**:
Expenses, before waivers and reimbursements			1.53			1.24			1.29			1.28			1.31			1.23
Expenses, net of waivers and reimbursements			0.95			0.95			0.95			0.95			0.98			1.05
Net investment income (loss), before waivers and reimbursements			(1.19	)		(0.91	)		(0.80	)		(0.56	)		(0.58	)		(0.58	)
Net investment income (loss), net of waivers and reimbursements			(0.61	)		(0.62	)		(0.46	)		(0.23	)		(0.25	)		(0.40	)
Class I net assets at the end of the year (in thousands)		$	31,494		$	46,694		$	77,273		$	67,936		$	51,173		$	71,369
Portfolio turnover rate (%)*			20			47			45			43			58			59

*	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.


132	Semiannual Report	June 30, 2022

Financial Highlights — For a share outstanding throughout each period

Mid Cap Growth Fund

	Class R6
	(unaudited) Period Ended June 30,				Years Ended December 31,
	2022				2021			2020			2019(a)
Net asset value, beginning of year		$	14.69		$	14.14		$	11.94		$	11.93
Income (loss) from investment operations:
Net investment income (loss)			(0.03	)		(0.08	)		(0.06	)		(0.01	)
Net realized and unrealized gain (loss) on investments			(4.66	)		1.24			3.29			1.07
Total from investment operations			(4.69	)		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		$	10.00		$	14.69		$	14.14		$	11.94
Total return (%)*			(31.93	)		8.44			27.18			9.10
Ratios to average daily net assets (%)**:
Expenses, before waivers and reimbursements			1.31			1.11			1.16			1.14
Expenses, net of waivers and reimbursements			0.90			0.90			0.90			0.90
Net investment income (loss), before waivers and reimbursements			(0.96	)		(0.78	)		(0.70	)		(0.41	)
Net investment income (loss), net of waivers and reimbursements			(0.55	)		(0.57	)		(0.44	)		(0.17	)
Class R6 net assets at the end of the year (in thousands)		$	462		$	676		$	623		$	145
Portfolio turnover rate (%)*			20			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.


June 30, 2022	William Blair Funds	133

Financial Highlights — For a share outstanding throughout each period

Mid Cap Value Fund

	Class I
	(unaudited) Period Ended June 30,
	2022(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			(1.30	)
Total from investment operations			(1.26	)
Less distributions from:
Net investment income			—
Net realized gain			—
Total distributions			—
Net asset value, end of year		$	8.74
Total return (%)*			(12.60	)
Ratios to average daily net assets (%)**:
Expenses, before waivers and reimbursements			7.90
Expenses, net of waivers and reimbursements			0.75
Net investment income (loss), before waivers and reimbursements			(5.77	)
Net investment income (loss), net of waivers and reimbursements			1.38
Class I net assets at the end of the year (in thousands)		$	48
Portfolio turnover rate (%)*			4

	Class R6
	(unaudited) Period Ended June 30,
	2022(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			(1.30	)
Total from investment operations			(1.26	)
Less distributions from:
Net investment income			—
Net realized gain			—
Total distributions			—
Net asset value, end of year		$	8.74
Total return (%)*			(12.60	)
Ratios to average daily net assets (%)**:
Expenses, before waivers and reimbursements			7.91
Expenses, net of waivers and reimbursements			0.70
Net investment income (loss), before waivers and reimbursements			(5.78	)
Net investment income (loss), net of waivers and reimbursements			1.43
Class R6 net assets at the end of the year (in thousands)		$	1,324
Portfolio turnover rate (%)*			4

(a)	For the period from March 16, 2022 (Commencement of Operations) to June 30, 2022.
*	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.


134	Semiannual Report	June 30, 2022

Financial Highlights — For a share outstanding throughout each period

Small-Mid Cap Core Fund

	Class I
	(unaudited) Period Ended June 30,				Years Ended December 31,
	2022				2021			2020			2019(a)
Net asset value, beginning of year		$	16.31		$	12.88		$	10.68		$	10.00
Income (loss) from investment operations:
Net investment income (loss)			(0.01	)		(0.03	)		0.00	^		0.02
Net realized and unrealized gain (loss) on investments			(3.54	)		3.46			2.20			0.67
Total from investment operations			(3.55	)		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		$	12.76		$	16.31		$	12.88		$	10.68
Total return (%)*			(21.77	)		26.63			20.60			6.87
Ratios to average daily net assets (%)**:
Expenses, before waivers and reimbursements			1.14			1.25			1.22			3.92
Expenses, net of waivers and reimbursements			0.95			0.95			0.95			0.95
Net investment income (loss), before waivers and reimbursements			(0.33	)		(0.47	)		(0.27	)		(2.23	)
Net investment income (loss), net of waivers and reimbursements			(0.14	)		(0.17	)		0.00			0.74
Class I net assets at the end of the year (in thousands)		$	89,264		$	61,433		$	22,958		$	1,655
Portfolio turnover rate (%)*			29			45			244			12

	Class R6
	(unaudited) Period Ended June 30,				Years Ended December 31,
	2022				2021			2020			2019(a)
Net asset value, beginning of year		$	16.32		$	12.88		$	10.68		$	10.00
Income (loss) from investment operations:
Net investment income (loss)			(0.01	)		(0.02	)		0.01			0.01
Net realized and unrealized gain (loss) on investments			(3.54	)		3.46			2.19			0.68
Total from investment operations			(3.55	)		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		$	12.77		$	16.32		$	12.88		$	10.68
Total return (%)*			(21.75	)		26.71			20.60			6.88
Ratios to average daily net assets (%)**:
Expenses, before waivers and reimbursements			1.03			1.16			1.07			3.92
Expenses, net of waivers and reimbursements			0.90			0.90			0.90			0.90
Net investment income (loss), before waivers and reimbursements			(0.23	)		(0.37	)		(0.11	)		(2.71	)
Net investment income (loss), net of waivers and reimbursements			(0.10	)		(0.11	)		0.06			0.31
Class R6 net assets at the end of the year (in thousands)		$	28,815		$	31,347		$	7,087		$	4,933
Portfolio turnover rate (%)*			29			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.


June 30, 2022	William Blair Funds	135

Financial Highlights — For a share outstanding throughout each period

Small-Mid Cap Growth Fund

	Class N
	(unaudited) Period Ended June 30,				Years Ended December 31,
	2022				2021			2020			2019			2018			2017
Net asset value, beginning of year		$	32.27		$	32.96		$	25.41		$	20.97		$	23.36		$	19.20
Income (loss) from investment operations:
Net investment income (loss)			(0.13	)		(0.36	)		(0.24	)		(0.20	)		(0.18	)		(0.16	)
Net realized and unrealized gain (loss) on investments			(9.10	)		2.90			8.37			6.56			(0.25	)		5.62
Total from investment operations			(9.23	)		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		$	23.04		$	32.27		$	32.96		$	25.41		$	20.97		$	23.36
Total return (%)*			(28.60	)		8.27			32.04			30.41			(2.29	)		28.57
Ratios to average daily net assets (%)**:
Expenses, before waivers and reimbursements			1.45			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			1.35
Net investment income (loss), before waivers and reimbursements			(1.03	)		(1.10	)		(1.01	)		(0.88	)		(0.81	)		(0.82	)
Net investment income (loss), net of waivers and reimbursements			(0.93	)		(1.02	)		(0.91	)		(0.80	)		(0.72	)		(0.74	)
Class N net assets at the end of the year (in thousands)		$	142,341		$	232,166		$	314,572		$	334,017		$	424,865		$	228,828
Portfolio turnover rate (%)*			26			38			55			56			46			64

	Class I
	(unaudited) Period Ended June 30,				Years Ended December 31,
	2022				2021			2020			2019			2018			2017
Net asset value, beginning of year		$	34.72		$	35.13		$	26.99		$	22.12		$	24.48		$	20.02
Income (loss) from investment operations:
Net investment income (loss)			(0.10	)		(0.29	)		(0.19	)		(0.14	)		(0.12	)		(0.11	)
Net realized and unrealized gain (loss) on investments			(9.80	)		3.11			8.91			6.93			(0.28	)		5.87
Total from investment operations			(9.90	)		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		$	24.82		$	34.72		$	35.13		$	26.99		$	22.12		$	24.48
Total return (%)*			(28.51	)		8.56			32.35			30.77			(2.06	)		28.90
Ratios to average daily net assets (%)**:
Expenses, before waivers and reimbursements			1.18			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			1.10
Net investment income (loss), before waivers and reimbursements			(0.76	)		(0.83	)		(0.73	)		(0.59	)		(0.53	)		(0.55	)
Net investment income (loss), net of waivers and reimbursements			(0.68	)		(0.77	)		(0.66	)		(0.53	)		(0.47	)		(0.49	)
Class I net assets at the end of the year (in thousands)		$	1,624,862		$	2,487,862		$	3,139,290		$	2,531,823		$	1,979,105		$	1,576,180
Portfolio turnover rate (%)*			26			38			55			56			46			64

*	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.


136	Semiannual Report	June 30, 2022

Financial Highlights — For a share outstanding throughout each period

Small-Mid Cap Growth Fund

	Class R6
	(unaudited) Period Ended June 30,				Years Ended December 31,
	2022				2021			2020			2019(a)
Net asset value, beginning of year		$	34.79		$	35.18		$	27.01		$	26.76
Income (loss) from investment operations:
Net investment income (loss)			(0.09	)		(0.26	)		(0.17	)		(0.09	)
Net realized and unrealized gain (loss) on investments			(9.82	)		3.10			8.92			2.26
Total from investment operations			(9.91	)		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		$	24.88		$	34.79		$	35.18		$	27.01
Total return (%)*			(28.49	)		8.60			32.44			8.17
Ratios to average daily net assets (%)**:
Expenses			1.04			1.03			1.05			1.05
Net investment income (loss)			(0.60	)		(0.69	)		(0.61	)		(0.46	)
Class R6 net assets at the end of the year (in thousands)		$	324,466		$	328,034		$	123,220		$	39,974
Portfolio turnover rate (%)*			26			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.


June 30, 2022	William Blair Funds	137

Financial Highlights — For a share outstanding throughout each period

Small Cap Growth Fund

	Class N
	(unaudited) Period Ended June 30,				Years Ended December 31,
		2022			2021			2020			2019			2018			2017
Net asset value, beginning of year		$	31.90		$	34.49		$	27.75		$	23.23		$	26.87		$	25.24
Income (loss) from investment operations:
Net investment income (loss)			(0.15	)		(0.45	)		(0.29	)		(0.24	)		(0.27	)		(0.25	)
Net realized and unrealized gain (loss) on investments			(8.77	)		4.56			10.86			5.40			(0.10	)		6.88
Total from investment operations			(8.92	)		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		$	22.98		$	31.90		$	34.49		$	27.75		$	23.23		$	26.87
Total return (%)*			(27.96	)		12.91			38.32			22.26			(2.14	)		26.70
Ratios to average daily net assets (%)**:
Expenses, before waivers and reimbursements			1.57			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			1.50
Net investment income (loss), before waivers and reimbursements			(1.17	)		(1.24	)		(1.10	)		(0.92	)		(0.94	)		(0.93	)
Net investment income (loss), net of waivers and reimbursements			(1.10	)		(1.18	)		(1.02	)		(0.88	)		(0.89	)		(0.89	)
Class N net assets at the end of the year (in thousands)		$	109,837		$	179,739		$	180,635		$	180,706		$	169,074		$	146,291
Portfolio turnover rate (%)*			27			49			71			51			74			81

	Class I
	(unaudited) Period Ended June 30,				Years Ended December 31,
		2022			2021			2020			2019			2018			2017
Net asset value, beginning of year		$	37.52		$	39.36		$	31.19		$	25.99		$	29.61		$	27.34
Income (loss) from investment operations:
Net investment income (loss)			(0.13	)		(0.41	)		(0.24	)		(0.19	)		(0.21	)		(0.20	)
Net realized and unrealized gain (loss) on investments			(10.33	)		5.27			12.24			6.03			(0.14	)		7.47
Total from investment operations			(10.46	)		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		$	27.06		$	37.52		$	39.36		$	31.19		$	25.99		$	29.61
Total return (%)*			(27.88	)		13.22			38.68			22.51			(1.88	)		26.99
Ratios to average daily net assets (%)**:
Expenses, before waivers and reimbursements			1.28			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			1.25
Net investment income (loss), before waivers and reimbursements			(0.87	)		(0.93	)		(0.82	)		(0.65	)		(0.65	)		(0.64	)
Net investment income (loss), net of waivers and reimbursements			(0.84	)		(0.93	)		(0.77	)		(0.63	)		(0.65	)		(0.64	)
Class I net assets at the end of the year (in thousands)		$	285,790		$	402,629		$	390,511		$	423,881		$	410,233		$	343,119
Portfolio turnover rate (%)*			27			49			71			51			74			81

*	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.

138

Semiannual Report

June 30, 2022

Financial Highlights — For a share outstanding throughout each period

Small Cap Growth Fund

	Class R6
	(unaudited) Period Ended June 30,				Years Ended December 31,
		2022			2021			2020			2019(a)
Net asset value, beginning of year		$	37.60		$	39.40		$	31.20		$	31.00
Income (loss) from investment operations:
Net investment income (loss)			(0.12	)		(0.37	)		(0.23	)		(0.11	)
Net realized and unrealized gain (loss) on investments			(10.35	)		5.27			12.26			0.95
Total from investment operations			(10.47	)		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		$	27.13		$	37.60		$	39.40		$	31.20
Total return (%)*			(27.85	)		13.31			38.76			2.75
Ratios to average daily net assets (%)**:
Expenses			1.17			1.16			1.19			1.18
Net investment income (loss)			(0.76	)		(0.84	)		(0.71	)		(0.51	)
Class R6 net assets at the end of the year (in thousands)		$	96,265		$	127,710		$	103,462		$	65,950
Portfolio turnover rate (%)*			27			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.

June 30, 2022

William Blair Funds

139

Financial Highlights — For a share outstanding throughout each period

Small Cap Value Fund

	Class N
	(unaudited)
	Period Ended				Period Ended				Period Ended
	June 30,				December 31,				October 31,
			2022				2021(b)				2021(a)
Net asset value, beginning of year		$	33.63			$	33.49			$	32.15
Income (loss) from investment operations:
Net investment income (loss)			0.04				0.00	^			0.05
Net realized and unrealized gain (loss) on investments			(5.21	)			1.37				1.29
Total from investment operations			(5.17	)			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		$	28.46			$	33.63			$	33.49
Total return (%)*			(15.37	)			4.24				4.17
Ratios to average daily net assets (%)**:
Expenses, before waivers and reimbursements			1.22				1.26				1.17
Expenses, net of waivers and reimbursements			1.15				1.15				1.15
Net investment income (loss), before waivers and reimbursements			0.19				(0.05	)			0.51
Net investment income (loss), net of waivers and reimbursements			0.26				0.06				0.53
Class N net assets at the end of the year (in thousands)		$	2,592			$	3,313			$	9,805
Portfolio turnover rate (%)*			17				7				35

	Class I
	(unaudited) Period Ended June 30,				Period Ended December 31,										Year Ended October 31,
		2022				2021(b)		2021		2020			2019		2018			2017
Net asset value, beginning of year		$	33.58			$	33.52	$	23.79	$	28.84		$	31.53	$	35.04		$	27.27
Income (loss) from investment operations:
Net investment income (loss)			0.08				0.03		0.18		0.09			0.18		0.06			0.06
Net realized and unrealized gain (loss) on investments			(5.20	)			1.35		12.91		(3.89	)		1.59		(1.00	)		8.61
Total from investment operations			(5.12	)			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		$	28.46			$	33.58	$	33.52	$	23.79		$	28.84	$	31.53		$	35.04
Total return (%)*			(15.25	)			4.31		55.32		(13.91	)		8.60		(3.06	)		32.07
Ratios to average daily net assets (%)**:
Expenses, before waivers and reimbursements			0.92				0.82		0.86		0.89			0.93		0.93			0.95
Expenses, net of waivers and reimbursements			0.89				0.82		0.86		0.89			0.93		0.93			0.95
Net investment income (loss), before waivers and reimbursements			0.50				0.55		0.52		0.37			0.63		0.16			0.17
Net investment income (loss), net of waivers and reimbursements			0.53				0.55		0.52		0.37			0.63		0.16			0.17
Class I net assets at the end of the year (in thousands)		$	872,616			$	1,059,157	$	1,143,150	$	1,181,409		$	908,831	$	738,558		$	768,329
Portfolio turnover rate (%)*			17				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.

140

Semiannual Report

June 30, 2022

Financial Highlights — For a share outstanding throughout each period

Small Cap Value Fund

	Class R6
	(unaudited)
	Period Ended				Period Ended			Period Ended
	June 30,				December 31,			October 31,
		2022				2021(b)			2021(a)
Net asset value, beginning of year		$	33.58			$	33.53		$	32.15
Income (loss) from investment operations:
Net investment income (loss)			0.10				0.03			0.06
Net realized and unrealized gain (loss) on investments			(5.20	)			1.35			1.32
Total from investment operations			(5.10	)			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		$	28.48			$	33.58		$	33.53
Total return (%)*			(15.19	)			4.33			4.26
Ratios to average daily net assets (%)**:
Expenses			0.79				0.78			0.78
Net investment income (loss)			0.65				0.59			0.64
Class R6 net assets at the end of the year (in thousands)		$	393,492			$	1,006,928		$	867,272
Portfolio turnover rate (%)*			17				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.

June 30, 2022

William Blair Funds

141

Financial Highlights — For a share outstanding throughout each period

Global Leaders Fund

	Class N
	(unaudited) Period Ended June 30,				Years Ended December 31,
		2022			2021			2020			2019			2018			2017
Net asset value, beginning of year		$	19.17		$	17.41		$	14.92		$	11.47		$	14.53		$	11.60
Income (loss) from investment operations:
Net investment income (loss)			(0.00	)^		(0.11	)		(0.06	)		0.01			0.02			0.05
Net realized and unrealized gain (loss) on investments			(5.94	)		2.96			4.74			3.61			(1.12	)		3.46
Total from investment operations			(5.94	)		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		$	13.23		$	19.17		$	17.41		$	14.92		$	11.47		$	14.53
Total return (%)*			(30.99	)		16.55			31.50			31.57			(8.23	)		30.31
Ratios to average daily net assets (%)**:
Expenses, before waivers and reimbursements			1.44			1.38			1.45			1.39			1.47			1.63
Expenses, net of waivers and reimbursements			1.15			1.15			1.15			1.20			1.33			1.37
Net investment income (loss), before waivers and reimbursements			(0.35	)		(0.79	)		(0.67	)		(0.10	)		(0.01	)		0.09
Net investment income (loss), net of waivers and reimbursements			(0.06	)		(0.56	)		(0.37	)		0.09			0.13			0.35
Class N net assets at the end of the year (in thousands)		$	8,673		$	13,709		$	11,861		$	8,910		$	7,225		$	7,761
Portfolio turnover rate (%)*			6			18			27			27			49			41

	Class I
	(unaudited) Period Ended June 30,				Years Ended December 31,
		2022			2021			2020			2019			2018			2017
Net asset value, beginning of year		$	19.28		$	17.47		$	14.93		$	11.47		$	14.56		$	11.62
Income (loss) from investment operations:
Net investment income (loss)			0.02			(0.06	)		(0.01	)		0.05			0.06			0.09
Net realized and unrealized gain (loss) on investments			(5.97	)		2.96			4.74			3.61			(1.13	)		3.47
Total from investment operations			(5.95	)		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		$	13.33		$	19.28		$	17.47		$	14.93		$	11.47		$	14.56
Total return (%)*			(30.86	)		16.78			31.86			31.96			(8.06	)		30.69
Ratios to average daily net assets (%)**:
Expenses, before waivers and reimbursements			1.11			1.07			1.12			1.07			1.15			1.33
Expenses, net of waivers and reimbursements			0.90			0.90			0.90			0.95			1.07			1.07
Net investment income (loss), before waivers and reimbursements			0.00			(0.49	)		(0.31	)		0.22			0.31			0.39
Net investment income (loss), net of waivers and reimbursements			0.21			(0.32	)		(0.09	)		0.34			0.39			0.65
Class I net assets at the end of the year (in thousands)		$	83,133		$	124,488		$	107,375		$	114,666		$	83,790		$	60,067
Portfolio turnover rate (%)*			6			18			27			27			49			41

*	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.

142

Semiannual Report

June 30, 2022

Financial Highlights — For a share outstanding throughout each period

Global Leaders Fund

	Class R6
	(unaudited) Period Ended June 30,				Years Ended December 31,
		2022			2021			2020			2019		2018			2017
Net asset value, beginning of year		$	19.30		$	17.47		$	14.93		$	11.47	$	14.56		$	11.62
Income (loss) from investment operations:
Net investment income (loss)			0.02			(0.05	)		0.02			0.06		0.07			0.10
Net realized and unrealized gain (loss) on investments			(5.98	)		2.97			4.72			3.61		(1.13	)		3.47
Total from investment operations			(5.96	)		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		$	13.34		$	19.30		$	17.47		$	14.93	$	11.47		$	14.56
Total return (%)*			(30.83	)		16.90			31.91			32.02		(7.99	)		30.78
Ratios to average daily net assets (%)**:
Expenses, before waivers and reimbursements			1.03			0.99			1.06			1.01		1.08			1.10
Expenses, net of waivers and reimbursements			0.85			0.85			0.85			0.90		1.00			1.00
Net investment income (loss), before waivers and reimbursements			0.07			(0.40	)		(0.10	)		0.32		0.39			0.65
Net investment income (loss), net of waivers and reimbursements			0.25			(0.26	)		0.11			0.43		0.47			0.75
Class R6 net assets at the end of the year (in thousands)		$	3,627		$	5,585		$	2,946		$	48,133	$	79,685		$	143,521
Portfolio turnover rate (%)*			6			18			27			27		49			41

*	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.

June 30, 2022

William Blair Funds

143

Financial Highlights — For a share outstanding throughout each period

International Leaders Fund

	Class N
	(unaudited) Period Ended June 30,				Years Ended December 31,
		2022			2021			2020			2019		2018			2017
Net asset value, beginning of year		$	24.28		$	22.69		$	18.08		$	13.80	$	16.37		$	12.88
Income (loss) from investment operations:
Net investment income (loss)			0.07			(0.12	)		(0.04	)		0.09		0.13			0.11
Net realized and unrealized gain (loss) on investments			(7.64	)		2.35			4.82			4.25		(2.19	)		3.70
Total from investment operations			(7.57	)		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		$	16.71		$	24.28		$	22.69		$	18.08	$	13.80		$	16.37
Total return (%)*			(31.18	)		9.93			26.45			31.46		(12.70	)		29.65
Ratios to average daily net assets (%)**:
Expenses, before waivers and reimbursements			1.29			1.30			1.31			1.32		1.39			1.59
Expenses, net of waivers and reimbursements			1.15			1.15			1.15			1.18		1.28			1.35
Net investment income (loss), before waivers and reimbursements			0.54			(0.65	)		(0.39	)		0.44		0.70			0.48
Net investment income (loss), net of waivers and reimbursements			0.68			(0.50	)		(0.23	)		0.58		0.81			0.72
Class N net assets at the end of the year (in thousands)		$	34,735		$	47,234		$	19,586		$	11,163	$	8,715		$	9,651
Portfolio turnover rate (%)*			33			18			34			20		33			41

	Class I
	(unaudited) Period Ended June 30,				Years Ended December 31,
		2022			2021			2020			2019		2018			2017
Net asset value, beginning of year		$	24.41		$	22.80		$	18.13		$	13.84	$	16.44		$	12.92
Income (loss) from investment operations:
Net investment income (loss)			0.09			(0.06	)		(0.00	)^		0.12		0.17			0.16
Net realized and unrealized gain (loss) on investments			(7.68	)		2.36			4.85			4.27		(2.19	)		3.71
Total from investment operations			(7.59	)		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		$	16.82		$	24.41		$	22.80		$	18.13	$	13.84		$	16.44
Total return (%)*			(31.09	)		10.17			26.77			31.76		(12.45	)		30.05
Ratios to average daily net assets (%)**:
Expenses, before waivers and reimbursements			1.02			0.99			1.01			1.01		1.07			1.28
Expenses, net of waivers and reimbursements			0.90			0.90			0.90			0.93		1.03			1.05
Net investment income (loss), before waivers and reimbursements			0.74			(0.33	)		(0.11	)		0.64		1.02			0.86
Net investment income (loss), net of waivers and reimbursements			0.86			(0.24	)		(0.00	)		0.72		1.06			1.09
Class I net assets at the end of the year (in thousands)		$	386,886		$	591,500		$	393,596		$	181,617	$	76,382		$	60,279
Portfolio turnover rate (%)*			33			18			34			20		33			41

*	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.

144

Semiannual Report

June 30, 2022

Financial Highlights — For a share outstanding throughout each period

International Leaders Fund

	Class R6
	(unaudited) Period Ended June 30,				Years Ended December 31,
		2022			2021			2020		2019		2018			2017
Net asset value, beginning of year		$	24.41		$	22.80		$	18.12	$	13.83	$	16.43		$	12.92
Income (loss) from investment operations:
Net investment income (loss)			0.10			(0.04	)		0.02		0.14		0.18			0.18
Net realized and unrealized gain (loss) on investments			(7.69	)		2.35			4.85		4.26		(2.19	)		3.70
Total from investment operations			(7.59	)		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		$	16.82		$	24.41		$	22.80	$	18.12	$	13.83		$	16.43
Total return (%)*			(31.09	)		10.22			26.88		31.83		(12.38	)		30.08
Ratios to average daily net assets (%)**:
Expenses, before waivers and reimbursements			0.91			0.91			0.92		0.93		0.99			1.03
Expenses, net of waivers and reimbursements			0.85			0.85			0.85		0.88		0.95			0.95
Net investment income (loss), before waivers and reimbursements			0.94			(0.24	)		0.03		0.80		1.07			1.10
Net investment income (loss), net of waivers and reimbursements			1.00			(0.18	)		0.10		0.85		1.11			1.18
Class R6 net assets at the end of the year (in thousands)		$	558,470		$	667,996		$	687,171	$	461,124	$	324,902		$	308,898
Portfolio turnover rate (%)*			33			18			34		20		33			41

*	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.

June 30, 2022

William Blair Funds

145

Financial Highlights — For a share outstanding throughout each period

International Growth Fund

	Class N
	(unaudited) Period Ended June 30,				Years Ended December 31,
		2022			2021			2020			2019		2018			2017
Net asset value, beginning of year		$	37.57		$	38.75		$	29.68		$	23.04	$	30.41		$	23.86
Income (loss) from investment operations:
Net investment income (loss)			0.19			(0.28	)		(0.16	)		0.09		0.16			0.21
Net realized and unrealized gain (loss) on investments			(11.72	)		3.51			9.55			6.87		(5.56	)		6.73
Total from investment operations			(11.53	)		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		$	26.04		$	37.57		$	38.75		$	29.68	$	23.04		$	30.41
Total return (%)*			(30.69	)		8.68			31.64			30.24		(18.00	)		29.11
Ratios to average daily net assets (%)**:
Expenses, before waivers and reimbursements			1.44			1.46			1.47			1.45		1.46			1.47
Expenses, net of waivers and reimbursements			1.38			1.45			1.45			1.45		1.45			1.45
Net investment income (loss), before waivers and reimbursements			1.22			(0.68	)		(0.56	)		0.34		0.54			0.76
Net investment income (loss), net of waivers and reimbursements			1.28			(0.67	)		(0.54	)		0.34		0.55			0.78
Class N net assets at the end of the year (in thousands)		$	195,767		$	293,481		$	288,976		$	494,788	$	456,533		$	763,740
Portfolio turnover rate (%)*			28			19			27			34		78			82

	Class I
	(unaudited) Period Ended June 30,				Years Ended December 31,
		2022			2021			2020			2019		2018			2017
Net asset value, beginning of year		$	38.68		$	39.65		$	30.38		$	23.56	$	31.13		$	24.42
Income (loss) from investment operations:
Net investment income (loss)			0.24			(0.15	)		(0.08	)		0.18		0.26			0.30
Net realized and unrealized gain (loss) on investments			(12.07	)		3.59			9.79			7.03		(5.70	)		6.89
Total from investment operations			(11.83	)		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		$	26.85		$	38.68		$	39.65		$	30.38	$	23.56		$	31.13
Total return (%)*			(30.58	)		9.01			31.99			30.66		(17.73	)		29.49
Ratios to average daily net assets (%)**:
Expenses, before waivers and reimbursements			1.16			1.14			1.16			1.14		1.13			1.14
Expenses, net of waivers and reimbursements			1.13			1.14			1.16			1.14		1.13			1.14
Net investment income (loss), before waivers and reimbursements			1.54			(0.36	)		(0.24	)		0.65		0.86			1.08
Net investment income (loss), net of waivers and reimbursements			1.57			(0.36	)		(0.24	)		0.65		0.86			1.08
Class I net assets at the end of the year (in thousands)		$	1,193,559		$	1,702,775		$	1,914,460		$	1,552,355	$	1,646,811		$	2,375,326
Portfolio turnover rate (%)*			28			19			27			34		78			82

*	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.

146

Semiannual Report

June 30, 2022

Financial Highlights — For a share outstanding throughout each period

International Growth Fund

	Class R6
	(unaudited)
	Period Ended
	June 30,				Years Ended December 31,
		2022				2021			2020			2019(a)
Net asset value, beginning of year		$	38.72			$	39.66		$	30.37		$	27.56
Income (loss) from investment operations:
Net investment income (loss)			0.24				(0.11	)		(0.07	)		(0.05	)
Net realized and unrealized gain (loss) on investments			(12.08	)			3.58			9.83			3.27
Total from investment operations			(11.84	)			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		$	26.88			$	38.72		$	39.66		$	30.37
Total return (%)*			(30.58	)			9.09			32.16			11.71
Ratios to average daily net assets (%)**:
Expenses			1.06				1.06			1.07			1.06
Net investment income (loss)			1.56				(0.25	)		(0.23	)		(0.26	)
Class R6 net assets at the end of the year (in thousands)		$	81,167			$	126,641		$	109,214		$	61,916
Portfolio turnover rate (%)*			28				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.
**	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.

June 30, 2022

William Blair Funds

147

Financial Highlights — For a share outstanding throughout each period

Institutional International Growth Fund

	Institutional
	(unaudited) Period Ended June 30,				Years Ended December 31,
		2022			2021			2020			2019		2018			2017
Net asset value, beginning of year		$	19.03		$	20.37		$	17.35		$	13.40	$	18.08		$	14.55
Income (loss) from investment operations:
Net investment income (loss)			0.11			(0.05	)		(0.01	)		0.12		0.18			0.21
Net realized and unrealized gain (loss) on investments			(5.94	)		1.86			5.60			4.00		(3.29	)		4.07
Total from investment operations			(5.83	)		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		$	13.20		$	19.03		$	20.37		$	17.35	$	13.40		$	18.08
Total return (%)*			(30.64	)		9.39			32.47			30.75		(17.50	)		29.53
Ratios to average daily net assets (%)**:
Expenses			1.01			1.01			1.00			0.99		0.97			0.97
Net investment income (loss)			1.45			(0.22	)		(0.04	)		0.77		1.01			1.22
Net assets at the end of the year (in thousands)		$	932,941		$	1,281,843		$	1,326,482		$	1,892,911	$	1,784,435		$	2,330,299
Portfolio turnover rate (%)*			31			19			31			35		82			84

*	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.

148

Semiannual Report

June 30, 2022

Financial Highlights — For a share outstanding throughout each period

International Small Cap Growth Fund

	Class N
	(unaudited) Period Ended June 30,				Years Ended December 31,
		2022			2021			2020			2019		2018			2017
Net asset value, beginning of year		$	16.56		$	17.45		$	13.85		$	10.36	$	15.49		$	12.87
Income (loss) from investment operations:
Net investment income (loss)			0.03			(0.12	)		(0.05	)		0.05		0.04			0.12
Net realized and unrealized gain (loss) on investments			(6.48	)		1.91			4.01			3.45		(3.78	)		3.98
Total from investment operations			(6.45	)		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		$	10.11		$	16.56		$	17.45		$	13.85	$	10.36		$	15.49
Total return (%)*			(38.95	)		10.87			28.68			33.81		(24.48	)		32.17
Ratios to average daily net assets (%)**:
Expenses, before waivers and reimbursements			1.49			1.46			1.52			1.48		1.48			1.62
Expenses, net of waivers and reimbursements			1.49			1.46			1.52			1.48		1.48			1.47
Net investment income (loss), before waivers and reimbursements			0.43			(0.67	)		(0.36	)		0.45		0.29			0.70
Net investment income (loss), net of waivers and reimbursements			0.43			(0.67	)		(0.36	)		0.45		0.29			0.85
Class N net assets at the end of the year (in thousands)		$	1,874		$	3,540		$	3,101		$	3,650	$	3,440		$	6,275
Portfolio turnover rate (%)*			33			52			63			38		88			64

	Class I
	(unaudited) Period Ended June 30,				Years Ended December 31,
		2022			2021			2020			2019		2018			2017
Net asset value, beginning of year		$	16.80		$	17.66		$	13.98		$	10.45	$	15.65		$	13.00
Income (loss) from investment operations:
Net investment income (loss)			0.05			(0.07	)		(0.01	)		0.09		0.09			0.14
Net realized and unrealized gain (loss) on investments			(6.58	)		1.93			4.06			3.48		(3.84	)		4.07
Total from investment operations			(6.53	)		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		$	10.27		$	16.80		$	17.66		$	13.98	$	10.45		$	15.65
Total return (%)*			(38.87	)		11.17			29.04			34.22		(24.29	)		32.70
Ratios to average daily net assets (%)**:
Expenses, before waivers and reimbursements			1.23			1.19			1.25			1.21		1.18			1.31
Expenses, net of waivers and reimbursements			1.23			1.19			1.25			1.21		1.18			1.16
Net investment income (loss), before waivers and reimbursements			0.73			(0.40	)		(0.05	)		0.75		0.60			0.77
Net investment income (loss), net of waivers and reimbursements			0.73			(0.40	)		(0.05	)		0.75		0.60			0.92
Class I net assets at the end of the year (in thousands)		$	91,547		$	136,573		$	145,283		$	142,951	$	165,451		$	338,920
Portfolio turnover rate (%)*			33			52			63			38		88			64

*	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.

June 30, 2022

William Blair Funds

149

Financial Highlights — For a share outstanding throughout each period

International Small Cap Growth Fund

	Class R6
	(unaudited) Period Ended June 30,				Years Ended December 31,
		2022				2021			2020			2019		2018			2017
Net asset value, beginning of year		$	16.91			$	17.76		$	14.05		$	10.50	$	15.73		$	13.07
Income (loss) from investment operations:
Net investment income (loss)			0.05				(0.06	)		0.00	^		0.11		0.10			0.15
Net realized and unrealized gain (loss) on investments			(6.61	)			1.95			4.09			3.49		(3.85	)		4.08
Total from investment operations			(6.56	)			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		$	10.35			$	16.91		$	17.76		$	14.05	$	10.50		$	15.73
Total return (%)*			(38.79	)			11.27			29.23			34.32		(24.19	)		32.70
Ratios to average daily net assets (%)**:
Expenses			1.12				1.10			1.14			1.12		1.08			1.08
Net investment income (loss)			0.81				(0.31	)		0.02			0.86		0.67			0.99
Class R6 net assets at the end of the year (in thousands)		$	142,012			$	243,398		$	188,497		$	162,465	$	171,833		$	256,558
Portfolio turnover rate (%)*			33				52			63			38		88			64

*	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.

150

Semiannual Report

June 30, 2022

Financial Highlights — For a share outstanding throughout each period

Emerging Markets Leaders Fund

	Class N
	(unaudited) Period Ended June 30,				Years Ended December 31,
		2022			2021			2020			2019		2018			2017
Net asset value, beginning of year		$	11.33		$	13.26		$	10.51		$	8.26	$	11.06		$	7.84
Income (loss) from investment operations:
Net investment income (loss)			0.02			(0.06	)		(0.02	)		0.03		0.03			0.01
Net realized and unrealized gain (loss) on investments			(2.68	)		(0.98	)		2.88			2.28		(1.97	)		3.26
Total from investment operations			(2.66	)		(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		$	8.67		$	11.33		$	13.26		$	10.51	$	8.26		$	11.06
Total return (%)*			(23.48	)		(7.69	)		27.23			27.98		(17.73	)		41.68
Ratios to average daily net assets (%)**:
Expenses, before waivers and reimbursements			1.56			1.56			1.63			1.62		1.60			1.62
Expenses, net of waivers and reimbursements			1.35			1.40			1.40			1.45		1.58			1.47
Net investment income (loss), before waivers and reimbursements			0.20			(0.64	)		(0.45	)		0.17		0.27			(0.01	)
Net investment income (loss), net of waivers and reimbursements			0.41			(0.48	)		(0.22	)		0.34		0.29			0.14
Class N net assets at the end of the year (in thousands)		$	937		$	2,096		$	1,803		$	1,856	$	2,239		$	2,766
Portfolio turnover rate (%)*			21			40			47			33		52			59

	Class I
	(unaudited) Period Ended June 30,				Years Ended December 31,
		2022			2021			2020			2019		2018			2017
Net asset value, beginning of year		$	11.33		$	13.28		$	10.52		$	8.27	$	11.09		$	7.87
Income (loss) from investment operations:
Net investment income (loss)			0.05			(0.04	)		(0.00	)^		0.06		0.06			0.02
Net realized and unrealized gain (loss) on investments			(2.69	)		(0.98	)		2.89			2.29		(1.97	)		3.27
Total from investment operations			(2.64	)		(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		$	8.69		$	11.33		$	13.28		$	10.52	$	8.27		$	11.09
Total return (%)*			(23.30	)		(7.48	)		27.52			28.36		(17.45	)		41.89
Ratios to average daily net assets (%)**:
Expenses, before waivers and reimbursements			1.23			1.28			1.33			1.29		1.27			1.40
Expenses, net of waivers and reimbursements			1.10			1.15			1.15			1.20		1.27			1.25
Net investment income (loss), before waivers and reimbursements			0.84			(0.40	)		(0.21	)		0.53		0.58			0.09
Net investment income (loss), net of waivers and reimbursements			0.97			(0.27	)		(0.03	)		0.62		0.58			0.24
Class I net assets at the end of the year (in thousands)		$	43,103		$	42,750		$	62,319		$	45,090	$	34,786		$	47,666
Portfolio turnover rate (%)*			21			40			47			33		52			59

*	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.

June 30, 2022

William Blair Funds

151

Financial Highlights — For a share outstanding throughout each period

Emerging Markets Leaders Fund

	Class R6
	(unaudited) Period Ended June 30,				Years Ended December 31,
		2022			2021			2020			2019		2018			2017
Net asset value, beginning of year		$	11.32		$	13.26		$	10.51		$	8.26	$	11.09		$	7.86
Income (loss) from investment operations:
Net investment income (loss)			0.05			(0.02	)		0.00	^		0.06		0.07			0.03
Net realized and unrealized gain (loss) on investments			(2.68	)		(0.98	)		2.89			2.29		(1.98	)		3.28
Total from investment operations			(2.63	)		(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		$	8.69		$	11.32		$	13.26		$	10.51	$	8.26		$	11.09
Total return (%)*			(23.23	)		(7.35	)		27.50			28.45		(17.46	)		42.15
Ratios to average daily net assets (%)**:
Expenses, before waivers and reimbursements			1.15			1.20			1.26			1.23		1.20			1.19
Expenses, net of waivers and reimbursements			1.05			1.10			1.10			1.15		1.20			1.19
Net investment income (loss), before waivers and reimbursements			0.84			(0.26	)		(0.11	)		0.57		0.71			0.33
Net investment income (loss), net of waivers and reimbursements			0.94			(0.16	)		0.05			0.65		0.71			0.33
Class R6 net assets at the end of the year (in thousands)		$	352,576		$	428,839		$	198,015		$	191,337	$	161,889		$	427,480
Portfolio turnover rate (%)*			21			40			47			33		52			59

*	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.

152

Semiannual Report

June 30, 2022

Financial Highlights — For a share outstanding throughout each period

Emerging Markets Growth Fund

	Class N
	(unaudited) Period Ended June 30,				Years Ended December 31,
		2022			2021			2020			2019		2018			2017
Net asset value, beginning of year		$	15.55		$	18.42		$	13.67		$	11.14	$	16.20		$	10.99
Income (loss) from investment operations:
Net investment income (loss)			0.02			(0.13	)		(0.09	)		0.11		0.01			(0.02	)
Net realized and unrealized gain (loss) on investments			(4.38	)		0.62			5.60			2.98		(3.49	)		5.35
Total from investment operations			(4.36	)		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		$	11.19		$	15.55		$	18.42		$	13.67	$	11.14		$	16.20
Total return (%)*			(28.04	)		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			1.55			1.51		1.52			1.65
Expenses, net of waivers and reimbursements			1.48			1.55			1.55			1.51		1.52			1.50
Net investment income (loss), before waivers and reimbursements			0.19			(0.65	)		(0.60	)		0.84		0.09			(0.29	)
Net investment income (loss), net of waivers and reimbursements			0.26			(0.65	)		(0.60	)		0.84		0.09			(0.14	)
Class N net assets at the end of the year (in thousands)		$	18,168		$	28,565		$	18,606		$	7,804	$	7,103		$	10,479
Portfolio turnover rate (%)*			51			52			77			79		113			91

	Class I
	(unaudited) Period Ended June 30,				Years Ended December 31,
		2022			2021			2020			2019		2018			2017
Net asset value, beginning of year		$	15.85		$	18.66		$	13.82		$	11.25	$	16.36		$	11.10
Income (loss) from investment operations:
Net investment income (loss)			0.04			(0.07	)		(0.05	)		0.14		0.05			0.01
Net realized and unrealized gain (loss) on investments			(4.47	)		0.62			5.66			3.02		(3.52	)		5.40
Total from investment operations			(4.43	)		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		$	11.42		$	15.85		$	18.66		$	13.82	$	11.25		$	16.36
Total return (%)*			(27.95	)		3.25			40.72			28.29		(21.37	)		48.83
Ratios to average daily net assets (%)**:
Expenses, before waivers and reimbursements			1.26			1.27			1.30			1.26		1.27			1.42
Expenses, net of waivers and reimbursements			1.23			1.27			1.30			1.26		1.27			1.27
Net investment income (loss), before waivers and reimbursements			0.54			(0.37	)		(0.33	)		1.06		0.34			(0.07	)
Net investment income (loss), net of waivers and reimbursements			0.57			(0.37	)		(0.33	)		1.06		0.34			0.08
Class I net assets at the end of the year (in thousands)		$	194,090		$	190,985		$	113,697		$	73,496	$	79,427		$	129,481
Portfolio turnover rate (%)*			51			52			77			79		113			91

*	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.

June 30, 2022

William Blair Funds

153

Financial Highlights — For a share outstanding throughout each period

Emerging Markets Growth Fund

	Class R6
	(unaudited) Period Ended June 30,				Years Ended December 31,
		2022			2021			2020			2019		2018			2017
Net asset value, beginning of year		$	16.04		$	18.84		$	13.94		$	11.35	$	16.49		$	11.18
Income (loss) from investment operations:
Net investment income (loss)			0.04			(0.05	)		(0.03	)		0.15		0.07			0.02
Net realized and unrealized gain (loss) on investments			(4.52	)		0.63			5.71			3.04		(3.56	)		5.46
Total from investment operations			(4.48	)		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		$	11.56		$	16.04		$	18.84		$	13.94	$	11.35		$	16.49
Total return (%)*			(27.93	)		3.37			40.90			28.28		(21.29	)		49.06
Ratios to average daily net assets (%)**:
Expenses			1.17			1.17			1.20			1.19		1.19			1.17
Net investment income (loss)			0.54			(0.27	)		(0.22	)		1.17		0.46			0.17
Class R6 net assets at the end of the year (in thousands)		$	512,999		$	822,288		$	1,063,433		$	708,892	$	654,441		$	1,178,853
Portfolio turnover rate (%)*			51			52			77			79		113			91

*	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.

154

Semiannual Report

June 30, 2022

Financial Highlights — For a share outstanding throughout each period

Emerging Markets Small Cap Growth Fund

	Class N
	(unaudited) Period Ended June 30,				Years Ended December 31,
		2022			2021			2020			2019			2018			2017
Net asset value, beginning of year		$	23.52		$	22.22		$	16.80		$	13.96		$	18.66		$	13.73
Income (loss) from investment operations:
Net investment income (loss)			0.02			(0.20	)		(0.06	)		0.00	^		(0.02	)		0.01
Net realized and unrealized gain (loss) on investments			(6.39	)		3.53			5.48			2.84			(4.38	)		5.46
Total from investment operations			(6.37	)		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		$	17.15		$	23.52		$	22.22		$	16.80		$	13.96		$	18.66
Total return (%)*			(27.08	)		15.23			32.26			20.34			(23.57	)		40.09
Ratios to average daily net assets (%)**:
Expenses, before waivers and reimbursements			1.66			1.60			1.77			1.71			1.70			1.83
Expenses, net of waivers and reimbursements			1.55			1.55			1.55			1.55			1.58			1.64
Net investment income (loss), before waivers and reimbursements			0.10			(0.88	)		(0.58	)		(0.14	)		(0.22	)		(0.11	)
Net investment income (loss), net of waivers and reimbursements			0.21			(0.83	)		(0.36	)		0.02			(0.10	)		0.08
Class N net assets at the end of the year (in thousands)		$	3,237		$	4,262		$	3,947		$	4,025		$	8,977		$	15,082
Portfolio turnover rate (%)*			51			76			119			142			187			183

	Class I
	(unaudited) Period Ended June 30,				Years Ended December 31,
		2022			2021			2020			2019			2018			2017
Net asset value, beginning of year		$	23.79		$	22.40		$	16.90		$	14.03		$	18.73		$	13.77
Income (loss) from investment operations:
Net investment income (loss)			0.04			(0.14	)		(0.02	)		0.04			0.03			0.08
Net realized and unrealized gain (loss) on investments			(6.46	)		3.56			5.53			2.86			(4.41	)		5.47
Total from investment operations			(6.42	)		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		$	17.37		$	23.79		$	22.40		$	16.90		$	14.03		$	18.73
Total return (%)*			(26.99	)		15.51			32.60			20.58			(23.31	)		40.53
Ratios to average daily net assets (%)**:
Expenses, before waivers and reimbursements			1.37			1.31			1.45			1.40			1.38			1.50
Expenses, net of waivers and reimbursements			1.30			1.30			1.30			1.30			1.33			1.31
Net investment income (loss), before waivers and reimbursements			0.37			(0.59	)		(0.25	)		0.18			0.13			0.30
Net investment income (loss), net of waivers and reimbursements			0.44			(0.58	)		(0.10	)		0.28			0.18			0.49
Class I net assets at the end of the year (in thousands)		$	124,190		$	171,994		$	151,302		$	142,885		$	169,770		$	282,620
Portfolio turnover rate (%)*			51			76			119			142			187			183

*	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.

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William Blair Funds

155

Financial Highlights — For a share outstanding throughout each period

Emerging Markets Small Cap Growth Fund

	Class R6
	(unaudited) Period Ended June 30,				Years Ended December 31,
		2022			2021			2020			2019		2018			2017
Net asset value, beginning of year		$	23.84		$	22.44		$	16.93		$	14.06	$	18.76		$	13.79
Income (loss) from investment operations:
Net investment income (loss)			0.05			(0.12	)		(0.00	)^		0.05		0.05			0.10
Net realized and unrealized gain (loss) on investments			(6.48	)		3.56			5.53			2.86		(4.41	)		5.47
Total from investment operations			(6.43	)		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		$	17.41		$	23.84		$	22.44		$	16.93	$	14.06		$	18.76
Total return (%)*			(26.97	)		15.58			32.66			20.69		(23.24	)		40.62
Ratios to average daily net assets (%)**:
Expenses, before waivers and reimbursements			1.28			1.23			1.36			1.33		1.30			1.29
Expenses, net of waivers and reimbursements			1.25			1.23			1.25			1.25		1.25			1.25
Net investment income (loss), before waivers and reimbursements			0.46			(0.49	)		(0.14	)		0.27		0.22			0.53
Net investment income (loss), net of waivers and reimbursements			0.49			(0.49	)		(0.03	)		0.35		0.27			0.57
Class R6 net assets at the end of the year (in thousands)		$	209,540		$	324,152		$	152,160		$	130,711	$	98,188		$	166,927
Portfolio turnover rate (%)*			51			76			119			142		187			183

*	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.

156

Semiannual Report

June 30, 2022

Financial Highlights — For a share outstanding throughout each period

China Growth Fund

	Class I
	(unaudited)
	Period Ended				Period Ended
	June 30,				December 31,
		2022				2021(a)
Net asset value, beginning of year		$	9.54			$	10.00
Income (loss) from investment operations:
Net investment income (loss)			0.02				(0.04	)
Net realized and unrealized gain (loss) on investments			(1.79	)			(0.42	)
Total from investment operations			(1.77	)			(0.46	)
Less distributions from:
Net investment income			—				—
Net realized gain			—				—
Total distributions			—				—
Net asset value, end of year		$	7.77			$	9.54
Total return (%)*			(18.72	)			(4.40	)
Ratios to average daily net assets (%)**:
Expenses, before waivers and reimbursements			3.58				4.74
Expenses, net of waivers and reimbursements			1.03				1.05
Net investment income (loss), before waivers and reimbursements			(2.12	)			(4.69	)
Net investment income (loss), net of waivers and reimbursements			0.43				(1.00	)
Class I net assets at the end of the year (in thousands)		$	2,350			$	5,538
Portfolio turnover rate (%)*			24				4

	Class R6
	(unaudited)
	Period Ended				Period Ended
	June 30,				December 31,
		2022				2021(a)
Net asset value, beginning of year		$	9.54			$	10.00
Income (loss) from investment operations:
Net investment income (loss)			0.03				(0.03	)
Net realized and unrealized gain (loss) on investments			(1.80	)			(0.43	)
Total from investment operations			(1.77	)			(0.46	)
Less distributions from:
Net investment income			—				—
Net realized gain			—				—
Total distributions			—				—
Net asset value, end of year		$	7.77			$	9.54
Total return (%)*			(18.72	)			(4.40	)
Ratios to average daily net assets (%)**:
Expenses, before waivers and reimbursements			3.55				4.72
Expenses, net of waivers and reimbursements			0.98				1.00
Net investment income (loss), before waivers and reimbursements			(1.89	)			(4.61	)
Net investment income (loss), net of waivers and reimbursements			0.68				(0.89	)
Class R6 net assets at the end of the year (in thousands)		$	1,360			$	1,687
Portfolio turnover rate (%)*			24				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.

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William Blair Funds

157

Financial Highlights — For a share outstanding throughout each period

Emerging Markets Debt Fund

	Class I
	(unaudited)
	Period Ended				Period Ended
	June 30,				December 31,
		2022				2021(a)
Net asset value, beginning of year		$	9.59			$	10.00
Income (loss) from investment operations:
Net investment income (loss)			0.25				0.27
Net realized and unrealized gain (loss) on investments			(2.21	)			(0.40	)
Total from investment operations			(1.96	)			(0.13	)
Less distributions from:
Net investment income			0.25				0.28
Net realized gain			—			��	—
Total distributions			0.25				0.28
Net asset value, end of year		$	7.38			$	9.59
Total return (%)*			(20.65	)			(1.39	)
Ratios to average daily net assets (%)**:
Expenses, before waivers and reimbursements			1.16				1.24
Expenses, net of waivers and reimbursements			0.70				0.70
Net investment income (loss), before waivers and reimbursements			5.43				4.02
Net investment income (loss), net of waivers and reimbursements			5.89				4.56
Class I net assets at the end of the year (in thousands)		$	883			$	1,484
Portfolio turnover rate (%)*			70				72

	Class R6
	(unaudited)
	Period Ended				Period Ended
	June 30,				December 31,
		2022				2021(a)
Net asset value, beginning of year		$	9.59			$	10.00
Income (loss) from investment operations:
Net investment income (loss)			0.25				0.28
Net realized and unrealized gain (loss) on investments			(2.21	)			(0.41	)
Total from investment operations			(1.96	)			(0.13	)
Less distributions from:
Net investment income			0.26				0.28
Net realized gain			—				—
Total distributions			0.26				0.28
Net asset value, end of year		$	7.37			$	9.59
Total return (%)*			(20.62	)			(1.32	)
Ratios to average daily net assets (%)**:
Expenses, before waivers and reimbursements			1.09				1.17
Expenses, net of waivers and reimbursements			0.65				0.65
Net investment income (loss), before waivers and reimbursements			5.52				4.10
Net investment income (loss), net of waivers and reimbursements			5.96				4.62
Class R6 net assets at the end of the year (in thousands)		$	42,965			$	50,010
Portfolio turnover rate (%)*			70				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.

158

Semiannual Report

June 30, 2022

Financial Highlights — For a share outstanding throughout each period

Macro Allocation Fund (In Liquidation)

	Class N
	(unaudited) Period Ended June 30,				Years Ended December 31,
		2022			2021		2020			2019		2018			2017
Net asset value, beginning of year		$	10.82		$	10.93	$	11.44		$	11.41	$	11.84		$	11.34
Income (loss) from investment operations:
Net investment income (loss)			(0.04	)		0.07		0.04			0.08		0.08			0.06
Net realized and unrealized gain (loss) on investments			(0.09	)		0.06		(0.44	)		0.37		(0.24	)		0.51
Total from investment operations			(0.13	)		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		$	10.69		$	10.82	$	10.93		$	11.44	$	11.41		$	11.84
Total return (%)*			(1.11	)		1.15		(3.49	)		3.97		(1.30	)		5.06
Ratios to average daily net assets (%)**:
Expenses, before waivers and reimbursements			1.60			1.39		1.36			1.22		1.30			1.52
Expenses, net of waivers and reimbursements			1.27			1.28		1.26			1.22		1.30			1.37
Expenses, (excluding div/int expense), net of waivers and reimbursements			1.25			1.25		1.25			1.21		1.28			1.31
Net investment income (loss), before waivers and reimbursements			(1.10	)		0.54		0.26			0.70		0.66			0.35
Net investment income (loss), net of waivers and reimbursements			(0.77	)		0.65		0.36			0.70		0.66			0.50
Class N net assets at the end of the year (in thousands)		$	3,826		$	6,673	$	7,674		$	13,717	$	43,463		$	41,483
Portfolio turnover rate (%)*			8			70		29			31		36			43

	Class I
	(unaudited) Period Ended June 30,				Years Ended December 31,
		2022			2021		2020			2019		2018			2017
Net asset value, beginning of year		$	10.74		$	10.85	$	11.35		$	11.38	$	11.88		$	11.38
Income (loss) from investment operations:
Net investment income (loss)			(0.02	)		0.08		0.06			0.13		0.11			0.11
Net realized and unrealized gain (loss) on investments			(0.10	)		0.08		(0.42	)		0.34		(0.24	)		0.51
Total from investment operations			(0.12	)		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		$	10.62		$	10.74	$	10.85		$	11.35	$	11.38		$	11.88
Total return (%)*			(1.03	)		1.41		(3.15	)		4.14		(1.08	)		5.50
Ratios to average daily net assets (%)**:
Expenses, before waivers and reimbursements			1.23			1.12		1.04			0.97		0.99			1.17
Expenses, net of waivers and reimbursements			1.02			1.03		1.01			0.97		0.99			1.02
Expenses, (excluding div/int expense), net of waivers and reimbursements			1.00			1.00		1.00			0.96		0.97			0.96
Net investment income (loss), before waivers and reimbursements			(0.60	)		0.66		0.56			1.09		0.95			0.75
Net investment income (loss), net of waivers and reimbursements			(0.39	)		0.75		0.59			1.09		0.95			0.90
Class I net assets at the end of the year (in thousands)		$	18,647		$	67,139	$	171,153		$	358,935	$	486,543		$	780,075
Portfolio turnover rate (%)*			8			70		29			31		36			43

*	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.

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William Blair Funds

159

Financial Highlights — For a share outstanding throughout each period

Macro Allocation Fund (In Liquidation)

	Class R6
	(unaudited) Period Ended June 30,				Years Ended December 31,
		2022			2021		2020			2019		2018			2017
Net asset value, beginning of year		$	10.74		$	10.85	$	11.36		$	11.38	$	11.89		$	11.40
Income (loss) from investment operations:
Net investment income (loss)			(0.00	)^		0.10		0.08			0.14		0.13			0.12
Net realized and unrealized gain (loss) on investments			(0.12	)		0.07		(0.44	)		0.34		(0.24	)		0.51
Total from investment operations			(0.12	)		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		$	10.62		$	10.74	$	10.85		$	11.36	$	11.38		$	11.89
Total return (%)*			(1.03	)		1.48		(3.13	)		4.29		(0.94	)		5.51
Ratios to average daily net assets (%)**:
Expenses, before waivers and reimbursements			1.06			1.01		0.93			0.89		0.91			0.92
Expenses, net of waivers and reimbursements			0.97			0.98		0.93			0.89		0.91			0.92
Expenses, (excluding div/int expense), net of waivers and reimbursements			0.95			0.95		0.92			0.88		0.89			0.86
Net investment income (loss), before waivers and reimbursements			(0.17	)		0.91		0.70			1.23		1.10			1.04
Net investment income (loss), net of waivers and reimbursements			(0.08	)		0.94		0.70			1.23		1.10			1.04
Class R6 net assets at the end of the year (in thousands)		$	128		$	114,984	$	174,888		$	378,148	$	391,812		$	487,082
Portfolio turnover rate (%)*			8			70		29			31		36			43

*	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.

160

Semiannual Report

June 30, 2022

RENEWAL OF THE MANAGEMENT AGREEMENT

On April 27, 2022, the Board of Trustees (the “Board”) of the 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 renewal for an additional one-year term of the Trust’s Management Agreement with William Blair Investment Management, LLC (the “Adviser”) on behalf of each of the William Blair Funds (each, a “Fund” and collectively, the “Funds”) (with the exception of the China Growth Fund, for which the Management Agreement was approved for an initial two-year term by the Board on April 28, 2021, and the Mid Cap Value Fund and the Emerging Markets ex China Growth Fund, for which the Management Agreement was approved for an initial two-year term by the Board on November 30, 2021). In deciding to approve the renewal of the Management Agreement, the Board did not identify any single factor or group of factors as all important or controlling and considered all factors together. The Board did not allot a particular weight to any one factor or group of factors.

The information in this summary outlines the Board’s considerations associated with its renewal of the Management Agreement. In connection with its deliberations regarding the continuation of the Management Agreement, the Board considered such information and factors as it believed to be necessary to evaluate the terms of the Management Agreement. As described below, the Board considered the nature, quality and extent of the services performed by the Adviser under the Management Agreement; the investment performance of each Fund and the Adviser; comparative management fees and expense ratios as prepared by an independent provider (Broadridge); the estimated profitability realized by the Adviser; the extent to which the Adviser realizes economies of scale as a Fund grows; and whether fall-out benefits are being realized by the Adviser. In addition, the Independent Trustees discussed the renewal of the Management Agreement with Trust management and in private sessions with independent legal counsel at which no representatives of the Adviser were present.

The Board, including the Independent Trustees, considered the renewal of the Management Agreement pursuant to a process that concluded at the Board’s April 27, 2022 meeting. In preparation for the review process, the Independent Trustees considered the type and nature of information to be requested, and independent legal counsel sent a formal request for information to the Adviser. The Adviser provided extensive information in response to the request. After reviewing the information received, the Independent Trustees requested supplemental information, which the Adviser provided. The Independent Trustees also received a memorandum from legal counsel advising them of their duties and responsibilities in connection with the consideration of the Management Agreement. The Independent Trustees reviewed comparative performance for a performance peer universe and peer group of funds and comparative management fees and expense ratios for an expense peer group and an expense peer universe of funds provided by Broadridge for each Fund. In addition, the Independent Trustees considered: (1) the nature, quality and extent of the services provided by the Adviser; (2) information comparing the performance of each Fund to one or more relevant securities indexes; (3) information comparing management fees of each Fund to fees charged by the Adviser to other funds and client accounts with similar investment strategies; (4) the estimated allocated direct or indirect costs of services provided and estimated profits realized by the Adviser for both the Trust as a whole and each Fund individually; and (5) information describing other benefits to the Adviser and its affiliate, William Blair & Company, L.L.C. (the “Distributor,” and collectively with the Adviser, “William Blair”), resulting from their relationship with the Funds. The Independent Trustees also noted that they receive information from the Adviser regarding the Funds throughout the year in connection with regular Board meetings, including presentations from portfolio managers. In addition, the Adviser made a presentation to the Board regarding the contract review information, including addressing the supplemental information requests, and answered questions from the Independent Trustees. The Board, including the Independent Trustees, determined that, given the totality of the information provided with respect to the Management Agreement, the Board had received sufficient information to renew the Management Agreement. The Independent Trustees noted that in evaluating the Management Agreement, they were taking into account their accumulated experience as Board members in working with the Adviser on matters relating to the Funds. Based on their review, the Independent Trustees concluded that it was in the best interest of each Fund to renew the Management Agreement and, accordingly, recommended to the Board of the Trust the renewal of the Management Agreement for each Fund. The Board considered the recommendation of the Independent Trustees along with other factors that the Board deemed relevant.

Nature, Quality and Extent of Services. In evaluating the nature, quality and extent of the services provided by the Adviser to the Funds, the Board noted that the Adviser is a quality firm with a reputation for integrity and honesty that employs high-quality people and has a long association with the Funds. The Board believes that a long-term relationship with a capable, conscientious adviser is in the best interests of shareholders and that shareholders have invested in the Funds knowing that the Adviser manages the Funds and knowing the management fees. The Board considered the Adviser’s fundamental research approach in actively managed, process oriented investing. The Board considered biographical information about the Trust’s officers, other Adviser personnel and the Funds’ portfolio managers, including information on the portfolio managers’ personal investments in the Fund(s) they manage. The Board also considered the administrative services performed by the Adviser, financial information regarding the Adviser, the Adviser’s execution quality and use of soft dollars, risk management oversight, compliance program and the expense limitations proposed for each of the Funds’ share classes. The Board also considered the nature, quality and extent of

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161

services that the Adviser provides to the Funds compared to the services that the Adviser provides to other clients. The Board noted that the Adviser pays the compensation of all of the officers of the Trust. Based upon all relevant factors, the Board concluded that the nature, quality and extent of the services provided by the Adviser to each Fund were appropriate.

Performance. The Board reviewed information on the annualized net total returns of Class I shares of the Funds (except for the Institutional International Growth Fund, which does not have share classes) for the one-, three-, five- and ten-year periods ended December 31, 2021, as applicable, along with annualized total return information for a Morningstar performance peer universe of funds and one or more benchmark securities indexes. The Morningstar performance peer universe for each Fund included all funds in the same Morningstar category as the Fund. For purposes of this report, Class I shares were used for comparison purposes for all Funds (except for the Institutional International Growth Fund, which does not have share classes) as the Board noted that Class I shares represent the largest percentage of assets in the Trust. In evaluating performance, the Board recognized that the performance data reflects a snapshot of a period as of a particular date and that selecting a different performance period could produce different results.

The Board considered that the Adviser seeks to provide superior performance over the long term and was committed to managing each Fund consistently with the Fund’s stated investment strategies and that at times relative performance will be affected by whether the market environment favors or disfavors particular investments, styles and/or market capitalizations. The Board considered that the Adviser had managed the Funds consistent with their respective investment strategies. Based on the information provided, the Board considered the following with respect to the total returns of each Fund.

Growth Fund. The Board considered that the Fund’s total return was above the average of its Morningstar performance peer universe for the one-, three- and five-year periods ended December 31, 2021. The Board also considered that the Fund underperformed the benchmark (Russell 3000^®Growth Index) for the one-, three- and five-year periods ended December 31, 2021.

Large Cap Growth Fund. The Board considered that the Fund’s total return was above the average of its Morningstar performance peer universe for the one-, three- and five-year periods ended December 31, 2021. The Board also considered that the Fund outperformed the benchmark (Russell 1000^®Growth Index) for the one- and five-year periods and underperformed the benchmark for the three-year period ended December 31, 2021.

Mid Cap Growth Fund. The Board considered that the Fund’s total return was below the average of its Morningstar performance peer universe and the benchmark (Russell Midcap^®Growth Index) for the one-, three- and five-year periods ended December 31, 2021. The Board considered the Adviser’s view that the Fund’s relative underperformance for the three- and five-year periods was the result of stock specific issues and style headwinds.

Small-Mid Cap Core Fund. The Board considered that the Fund’s total return was above the average of its Morningstar performance peer universe and the benchmark (Russell 2500™ Index) for the one-year period ended December 31, 2021.

Small-Mid Cap Growth Fund. The Board considered that the Fund’s total return was below the average of its Morningstar performance peer universe for the one-, three- and five-year periods ended December 31, 2021. The Board also considered that the Fund outperformed the benchmark (Russell 2500™ Growth Index) for the one- and five-year periods and underperformed the benchmark for the three-year period ended December 31, 2021. The Board also considered that the Fund’s underperformance was largely attributable to calendar year 2020, when the Fund lagged the return of the benchmark.

Small Cap Growth Fund. The Board considered that the Fund’s total return was above the average of its Morningstar performance peer universe for the one- and five-year periods and below the average of its Morningstar performance peer universe for the three-year period ended December 31, 2021. The Board also considered that the Fund outperformed the benchmark (Russell 2000^®Growth Index) for the one-, three- and five-year periods ended December 31, 2021.

Small Cap Value Fund. The Board considered that the Fund’s total return was below the average of its Morningstar performance peer universe for the one-year period and above the average of its Morningstar performance peer universe for the three- and five-year periods ended December 31, 2021. The Board also considered that the Fund outperformed the benchmark (Russell 2000^®Value Index) for the one-, three- and five-year periods ended December 31, 2021. The Board also considered that the Fund is the performance and accounting survivor of the reorganization of the ICM Small Company Portfolio with the Fund, which was completed on July 16, 2021.

Global Leaders Fund. The Board considered that the Fund’s total return was above the average of its Morningstar performance peer universe for the one-, three- and five-year periods ended December 31, 2021. The Board also considered that the Fund underperformed the benchmark (MSCI All Country World IMI (net) Index) for the one-year period and outperformed the benchmark for the three- and five-year periods ended December 31, 2021.

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International Leaders Fund. The Board considered that the Fund’s total return was above the average of its Morningstar performance peer universe and the benchmark (MSCI All Country World Ex-U.S. IMI (net) Index) for the one-, three- and five-year periods ended December 31, 2021.

International Growth Fund. The Board considered that the Fund’s total return was above the average of its Morningstar performance peer universe and the benchmark (MSCI All Country World Ex-U.S. IMI (net) Index) for the one-, three- and five-year periods ended December 31, 2021.

Institutional International Growth Fund. The Board considered that the Fund’s total return was above the average of its Morningstar performance peer universe and the benchmark (MSCI All Country World Ex-U.S. IMI (net) Index) for the one-, three- and five-year periods ended December 31, 2021.

International Small Cap Growth Fund. The Board considered that the Fund’s total return was above the average of its Morningstar performance peer universe for the one- and three-year periods and below the average of its Morningstar performance peer universe for the five-year period ended December 31, 2021. The Board also considered that the Fund underperformed the benchmark (MSCI All Country World Ex-U.S. Small Cap (net) Index) for the one-year period and outperformed the benchmark for the three- and five-year periods ended December 31, 2021.

Emerging Markets Leaders Fund. The Board considered that the Fund’s total return was below the average of its Morningstar performance peer universe and the benchmark (MSCI Emerging Markets (net) Index) for the one-year period and above the average of its Morningstar performance peer universe and the benchmark for the three- and five-year periods ended December 31, 2021.

Emerging Markets Growth Fund. The Board considered that the Fund’s total return was above the average of its Morningstar performance peer universe and the benchmark (MSCI Emerging Markets IMI (net) Index) for the one-, three- and five-year periods ended December 31, 2021.

Emerging Markets Small Cap Growth Fund. The Board considered that the Fund’s total return was above the average of its Morningstar performance peer universe for the one-, three- and five-year periods ended December 31, 2021. The Board also considered that the Fund underperformed the benchmark (MSCI Emerging Markets Small Cap (net) Index) for the one-year period and outperformed the benchmark for the three- and five-year periods ended December 31, 2021.

Emerging Markets Debt Fund. The Board considered that the Fund commenced operations on May 25, 2021, which provided a limited period of time to evaluate investment performance.

Macro Allocation Fund. The Board considered that the Fund’s total return was below the average of its Morningstar performance peer universe for the one-, three- and five-year periods ended December 31, 2021. The Board also considered that the Fund outperformed the benchmark (ICE BofAML 3-Month US Treasury Bill Index) for the one- and five-year periods and underperformed the benchmark for the three-year period ended December 31, 2021. The Board considered that it had approved the liquidation and termination of the Fund and that the renewal of the Management Agreement with respect to the Fund would allow the Fund to operate until completion of the liquidation and termination.

Management Fees. The Board reviewed each Fund’s management fee and reviewed information comparing the management fee to those of an expense peer group and an expense peer universe of funds provided by Broadridge for Class I shares of the Funds (except for the Institutional International Growth Fund, which does not have share classes). The Broadridge expense peer group for Class I (the “Broadridge Expense Group”) of each Fund other than the Institutional International Growth Fund, and the expense peer group for the Institutional International Growth Fund, consisted of a group of institutional funds with a similar investment strategy and asset size, as classified by Broadridge. The Broadridge expense peer universe for each Fund consisted of the Fund’s Broadridge expense peer group and all other no-load funds with an investment strategy as classified by Broadridge similar to the Fund’s. In considering the Broadridge information and giving effect to the contractual management fee reductions proposed by the Adviser for the International Growth Fund, the Emerging Markets Leaders Fund and the Emerging Markets Growth Fund, the Board noted that the contractual management fees for the Growth Fund, the Large Cap Growth Fund, the Small Cap Value Fund, the Emerging Markets Leaders Fund, the Emerging Markets Growth Fund, the Emerging Markets Small Cap Growth Fund, the Emerging Markets Debt Fund and the Macro Allocation Fund were below the average contractual management fees of their respective Broadridge Expense Groups. The Board also noted that the contractual management fees for the Mid Cap Growth Fund, the Small-Mid Cap Core Fund, the Small-Mid Cap Growth Fund, the Small Cap Growth Fund, the Global Leaders Fund, the International Leaders Fund, the International Growth Fund, the Institutional International Growth Fund and the International Small Cap Growth Fund were above the average contractual management fees of their respective Broadridge Expense Groups.

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In considering the management fee for the Institutional International Growth Fund, which does not have share classes, the Board noted that the contractual management fee for the Fund giving effect to the proposed contractual management fee reduction proposed by the Adviser was above the average contractual management fee of its Broadridge expense peer group.

The Board noted the current and proposed contractual expense limitations for the share classes of the Funds. The Board considered that the Adviser proposed to contractually limit operating expenses until April 30, 2023 for each share class of the Funds. The Board considered the amount of management fees waived and other expenses reimbursed by the Adviser on behalf of the Funds in 2021.

For each Fund, the Board also reviewed amounts charged by the Adviser to other pooled investment vehicles, including other registered funds for which the Adviser acts as a sub-adviser, and the Adviser’s fee schedule for institutional accounts. With respect to other pooled investment vehicles and institutional accounts, the Board considered the Adviser’s statements to the effect that the level of services provided to the Funds and the regulatory responsibilities associated with sponsoring registered investment companies were greater as compared to the work involved for other pooled investment vehicles, including other registered funds for which the Adviser acts as a sub-adviser, and institutional accounts. In addition, the Board considered the Adviser’s statements to the effect that institutional accounts are distributed differently, operate under different investment and regulatory structures and have different business risks as compared to the Funds and that there are responsibilities and duties involved in sponsoring a registered fund that are not present in sub-advising a registered fund.

On the basis of all the information provided, the Board concluded that each Fund’s management fee, coupled with the applicable expense limitations, was reasonable.

Profitability. With respect to the profitability of the Management Agreement to the Adviser, the Board considered the overall fees paid under the Management Agreement, including the estimated allocated costs of the services provided, management fees waived and other expenses reimbursed, if any, and profits realized by the Adviser from its relationship with the Trust as a whole and each Fund individually. The Board concluded that the estimated profits realized by the Adviser were not unreasonable.

Economies of Scale. The Board considered the extent to which economies of scale would be realized as the Funds grow and whether fee levels reflect these economies of scale for the benefit of investors. The Board noted the Adviser’s statements to the effect that the resources required for the Adviser’s fundamental investment process typically increase as a Fund increases in size. The Board also considered that certain of the Funds were part of investment strategies that were capacity constrained by the Adviser so that opportunities for economies of scale were limited. The Board further considered that of the Funds that are subject to capacity constraints, the International Growth Fund, Institutional International Growth Fund, International Small Cap Growth Fund and Emerging Markets Small Cap Growth Fund are closed to investors, except as noted in each Fund’s prospectus.

In considering whether fee levels reflect economies of scale for the benefit of Fund investors, the Board considered each Fund’s asset size, management fee breakpoints for applicable Funds, the expense limitations in place for each Fund and the proposed reduction in management fees and/or expense limits for certain Funds and each Fund’s expense ratios. The Board concluded that in the aggregate the Funds’ fee levels reasonably reflect appropriate recognition of economies of scale.

Other Benefits. The Board considered benefits derived by the Adviser and its affiliates from their relationship with the Funds, including (1) receipt of research from brokerage firms; (2) soft dollars, which pertain primarily to the Funds investing in equity securities; (3) reimbursement of some intermediary fees in the nature of sub-transfer agency fees; (4) fees from Class N shares of the Funds to the Distributor pursuant to the Rule 12b-1 Plan, nearly all of which are paid to third parties; and (5) favorable media coverage. The Board determined that management fees were reasonable in light of these benefits.

Conclusion. Based upon all of the information considered and the conclusions reached, the Board determined that the terms of the Management Agreement continue to be fair and reasonable and that the continuation of the Management Agreement is in the best interests of each Fund.

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APPROVAL OF THE MANAGEMENT AGREEMENT FOR THE WILLIAM BLAIR MID CAP VALUE FUND

On November 30, 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 Mid Cap Value Fund (the “Fund”), and William Blair Investment Management, LLC (the “Adviser”). 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 that the Adviser also manages other series of the Trust and that the Board is familiar with the background and experience of the Fund’s portfolio managers. The Board considered the extensive information it receives from the Adviser in connection with the annual contract renewal process including financial information regarding the Adviser. The Board considered the previous experience of the Fund’s portfolio management team members with value-style investments in mid-cap companies. The Board also considered the Adviser’s experience in managing new funds and investing in the proposed Fund’s asset class and that the Adviser serves as investment adviser to the other series of the Trust. 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 Fund’s advisory fee to a peer group and a peer universe of institutional funds provided by Broadridge. The Broadridge peer group for the Fund consisted of the Fund and 11 other (no-load) institutional multi-cap value funds with no Rule 12b-1 fees, as classified by Broadridge. The Broadridge peer universe for the Fund consisted of the Fund, the Fund’s Broadridge peer group and all other institutional multi-cap value funds, excluding outliers.

In considering the information, the Board noted that the proposed advisory fee for the Fund was equal to the median and above the average 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, 2024. On the basis of the information provided, the Board concluded that the proposed advisory fee for the Fund 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 with respect to the Fund, the Board considered the Fund’s proposed advisory fee, that the Fund was newly organized, the Adviser’s agreement to limit total expenses until April 30, 2024 for Class I and Class R6 shares. The Board also considered that the Adviser will be incurring all expenses related to the organization of the Fund.

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, 2024, and concluded that the advisory fee for the Fund was reasonable.

Other Benefits to the Adviser. The Board considered benefits to be derived by the Adviser from its relationship with the Trust based on information provided during the annual contract renewal process, 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 for the Fund was reasonable.

Conclusion. Based upon 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.

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REVIEW OF LIQUIDITY RISK MANAGEMENT PROGRAM

The Board of Trustees (the “Board”) of William Blair Funds previously approved the William Blair Funds Liquidity Risk Management Program Policy (the “Policy”) under Rule 22e-4 under the 1940 Act (the “Liquidity Rule”), which sets forth the terms of the William Blair Liquidity Risk Management Program (the “Program”). The Program (through the Policy) seeks to assess, manage and review each Fund’s liquidity risk. For purposes of the Program, the Policy and the Liquidity Rule, “liquidity risk” is defined as the risk that a Fund could not meet requests to redeem shares issued by a Fund without significant dilution of remaining investors’ interest in the Funds. Among other things, the Liquidity Rule requires that a written report be provided to the Board on an annual basis that addresses the operation of the Program and assesses the adequacy and effectiveness of its implementation, including, if applicable, the operation of any highly liquid investment minimum (“HLIM”) established for a Fund and any material changes to the Program.

The Board designated the Liquidity Risk Management Committee of William Blair Investment Management, LLC, the Funds’ investment adviser, to be the administrator for the Program (the “Program Administrator”). On February 23, 2022, the Board of Trustees reviewed the Program Administrator’s written report (the “Report”) concerning the operation of the Program and the Policy as well as the adequacy and effectiveness of the Program’s and Policy’s implementation for the period from January 1, 2021 through December 31, 2021 (the “Program Reporting Period”). There were no material changes to the Program or to the Policy during the Program Reporting Period.

The Report summarized the operation of the Program and the Policy and the information and factors considered by the Program Administrator in assessing whether the Program and the Policy have been adequately and effectively implemented with respect to each Fund. Such information and factors included, among other things: (1) the liquidity risk framework used to assess, manage, and periodically review each Fund’s liquidity risk and the results of this assessment; (2) the classification of each of the Funds’ respective investments into one of four liquidity categories that reflect an estimate of their liquidity under normal and reasonably foreseeable stressed conditions; (3) whether a Fund invested primarily in “Highly Liquid Investments” (as defined under the Liquidity Rule) and whether an HLIM should be established for any Fund; (4) whether a Fund invested more than 15% of its assets in “Illiquid Investments” (as defined under the Liquidity Rule); (5) specific liquidity events arising during the Program Reporting Period, including the impact on Fund liquidity caused by extended non-U.S. market closures; and (6) the nature and quality of the services provided by the service provider engaged to assist with determining liquidity classifications for the Funds. Based on this review, the Report concluded that the Program and the Policy meet the requirements of the Liquidity Rule and are operating effectively.

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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	19	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)	19	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)	19	Potbelly Sandwich Works (2001 to 2015 and since 2021)⁽³⁾

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)	19	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 two 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.

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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⁽⁴⁾	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	19	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)⁽⁵⁾	19	Highland Funds (since 2022); Skyway Concession Company, LLC (since 2018); Illinois CPA Society (since 2017); Lifeway Foods, Inc. (since 2020); Green Thumb Industries (since 2022)

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)	19	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)⁽⁶⁾	19	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)	On February 9, 2021, Potbelly Corporation (“Potbelly”) entered into a securities purchase agreement with accredited purchasers, pursuant to which Potbelly agreed to issue and sell to the purchasers in a private placement an aggregate of (i) 3,249,668 shares of Potbelly’s common stock, par value $0.01 per share and (ii) warrants to purchase an aggregate of 1,299,861 shares of common stock, for an aggregate purchase price of $15.9 million (the “Offering”). The Offering closed on February 12, 2021. WBC acted as the sole placement agent for the Offering and received fees from Potbelly of approximately $1,025,000.
(4)	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 $214,000 and $252,000 in 2020 and 2021, respectively, for the services provided. DFS’s revenue was approximately $895 million in 2020 and $993 million in 2021. 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.
(5)	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.
(6)	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.

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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 (2020-2021); NN Investment Partners (formerly, ING Investment Management) (2013-2020)

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 International (1998-2018)

Ward D. Sexton, CFA, 1974	Senior Vice President	Since 2016	Partner, William Blair

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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

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)

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 (formerly, ING Investment Management) (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.

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(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 December 31 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

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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 January 1, 2022 to June 30, 2022.

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.

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Fund Expenses (Unaudited)

Expense Example	Beginning Account Value 1/1/2022	Ending Account Value 6/30/2022	Expenses Paid During the Period (a)	Annualized Expense Ratio
Growth Fund
Class N-actual return	$1,000.00	$714.65	$5.10	1.20	%
Class N-hypothetical 5% return	$1,000.00	$1,044.05	$6.08	1.20
Class I-actual return	$1,000.00	$715.63	$3.91	0.92
Class I-hypothetical 5% return	$1,000.00	$1,045.44	$4.67	0.92
Class R6-actual return	$1,000.00	$716.39	$3.66	0.86
Class R6-hypothetical 5% return	$1,000.00	$1,045.74	$4.36	0.86
Large Cap Growth Fund
Class N-actual return	$1,000.00	$681.91	$3.75	0.90
Class N-hypothetical 5% return	$1,000.00	$1,045.54	$4.56	0.90
Class I-actual return	$1,000.00	$682.58	$2.71	0.65
Class I-hypothetical 5% return	$1,000.00	$1,046.78	$3.30	0.65
Class R6-actual return	$1,000.00	$682.72	$2.50	0.60
Class R6-hypothetical 5% return	$1,000.00	$1,047.02	$3.05	0.60
Mid Cap Growth Fund
Class N-actual return	$1,000.00	$679.46	$5.00	1.20
Class N-hypothetical 5% return	$1,000.00	$1,044.05	$6.08	1.20
Class I-actual return	$1,000.00	$680.30	$3.96	0.95
Class I-hypothetical 5% return	$1,000.00	$1,045.29	$4.82	0.95
Class R6-actual return	$1,000.00	$680.74	$3.75	0.90
Class R6-hypothetical 5% return	$1,000.00	$1,045.54	$4.56	0.90
Mid Cap Value Fund
Class I-actual return (b)	$1,000.00	$874.00	$2.06	0.75
Class I-hypothetical 5% return (6 month period)	$1,000.00	$1,046.28	$3.81	0.75
Class R6-actual return (b)	$1,000.00	$874.00	$1.92	0.70
Class R6-hypothetical 5% return (6 month period)	$1,000.00	$1,046.53	$3.55	0.70
Small-Mid Cap Core Fund
Class I-actual return	$1,000.00	$782.34	$4.20	0.95
Class I-hypothetical 5% return	$1,000.00	$1,045.29	$4.82	0.95
Class R6-actual return	$1,000.00	$782.48	$3.98	0.90
Class R6-hypothetical 5% return	$1,000.00	$1,045.54	$4.56	0.90
Small-Mid Cap Growth Fund
Class N-actual return	$1,000.00	$713.98	$5.74	1.35
Class N-hypothetical 5% return	$1,000.00	$1,043.31	$6.84	1.35
Class I-actual return	$1,000.00	$714.86	$4.68	1.10
Class I-hypothetical 5% return	$1,000.00	$1,044.55	$5.58	1.10
Class R6-actual return	$1,000.00	$715.15	$4.42	1.04
Class R6-hypothetical 5% return	$1,000.00	$1,044.84	$5.27	1.04
Small Cap Growth Fund
Class N-actual return	$1,000.00	$720.38	$6.40	1.50
Class N-hypothetical 5% return	$1,000.00	$1,042.56	$7.60	1.50
Class I-actual return	$1,000.00	$721.22	$5.33	1.25
Class I-hypothetical 5% return	$1,000.00	$1,043.80	$6.33	1.25
Class R6-actual return	$1,000.00	$721.54	$4.99	1.17
Class R6-hypothetical 5% return	$1,000.00	$1,044.20	$5.93	1.17
Small Cap Value Fund
Class N-actual return	$1,000.00	$846.27	$5.26	1.15
Class N-hypothetical 5% return	$1,000.00	$1,044.30	$5.83	1.15
Class I-actual return	$1,000.00	$847.53	$4.08	0.89
Class I-hypothetical 5% return	$1,000.00	$1,045.59	$4.51	0.89
Class R6-actual return	$1,000.00	$848.12	$3.62	0.79
Class R6-hypothetical 5% return	$1,000.00	$1,046.08	$4.01	0.79
Global Leaders Fund
Class N-actual return	$1,000.00	$690.14	$4.82	1.15
Class N-hypothetical 5% return	$1,000.00	$1,044.30	$5.83	1.15
Class I-actual return	$1,000.00	$691.39	$3.77	0.90
Class I-hypothetical 5% return	$1,000.00	$1,045.54	$4.56	0.90
Class R6-actual return	$1,000.00	$691.71	$3.57	0.85
Class R6-hypothetical 5% return	$1,000.00	$1,045.78	$4.31	0.85

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William Blair Funds

173

Fund Expenses (Unaudited)

Expense Example	Beginning Account Value 1/1/2022	Ending Account Value 6/30/2022	Expenses Paid During the Period (a)	Annualized Expense Ratio
International Leaders Fund
Class N-actual return	$1,000.00	$688.22	$4.81	1.15	%
Class N-hypothetical 5% return	$1,000.00	$1,044.30	$5.83	1.15
Class I-actual return	$1,000.00	$689.06	$3.77	0.90
Class I-hypothetical 5% return	$1,000.00	$1,045.54	$4.56	0.90
Class R6-actual return	$1,000.00	$689.06	$3.56	0.85
Class R6-hypothetical 5% return	$1,000.00	$1,045.78	$4.31	0.85
International Growth Fund
Class N-actual return	$1,000.00	$693.11	$5.79	1.38
Class N-hypothetical 5% return	$1,000.00	$1,043.16	$6.99	1.38
Class I-actual return	$1,000.00	$694.16	$4.75	1.13
Class I-hypothetical 5% return	$1,000.00	$1,044.40	$5.73	1.13
Class R6-actual return	$1,000.00	$694.21	$4.45	1.06
Class R6-hypothetical 5% return	$1,000.00	$1,044.74	$5.37	1.06
Institutional International Growth Fund
Institutional Class-actual return	$1,000.00	$693.64	$4.24	1.01
Institutional Class-hypothetical 5% return	$1,000.00	$1,044.99	$5.12	1.01
International Small Cap Growth Fund
Class N-actual return	$1,000.00	$610.51	$5.95	1.49
Class N-hypothetical 5% return	$1,000.00	$1,042.61	$7.55	1.49
Class I-actual return	$1,000.00	$611.31	$4.91	1.23
Class I-hypothetical 5% return	$1,000.00	$1,043.90	$6.23	1.23
Class R6-actual return	$1,000.00	$612.06	$4.48	1.12
Class R6-hypothetical 5% return	$1,000.00	$1,044.45	$5.68	1.12
Emerging Markets Leaders Fund
Class N-actual return	$1,000.00	$765.23	$5.91	1.35
Class N-hypothetical 5% return	$1,000.00	$1,043.31	$6.84	1.35
Class I-actual return	$1,000.00	$766.99	$4.82	1.10
Class I-hypothetical 5% return	$1,000.00	$1,044.55	$5.58	1.10
Class R6-actual return	$1,000.00	$767.67	$4.60	1.05
Class R6-hypothetical 5% return	$1,000.00	$1,044.79	$5.32	1.05
Emerging Markets Growth Fund
Class N-actual return	$1,000.00	$719.61	$6.31	1.48
Class N-hypothetical 5% return	$1,000.00	$1,042.66	$7.50	1.48
Class I-actual return	$1,000.00	$720.50	$5.25	1.23
Class I-hypothetical 5% return	$1,000.00	$1,043.90	$6.23	1.23
Class R6-actual return	$1,000.00	$720.70	$4.99	1.17
Class R6-hypothetical 5% return	$1,000.00	$1,044.20	$5.93	1.17
Emerging Markets Small Cap Growth Fund
Class N-actual return	$1,000.00	$729.17	$6.65	1.55
Class N-hypothetical 5% return	$1,000.00	$1,042.31	$7.85	1.55
Class I-actual return	$1,000.00	$730.14	$5.58	1.30
Class I-hypothetical 5% return	$1,000.00	$1,043.55	$6.59	1.30
Class R6-actual return	$1,000.00	$730.29	$5.36	1.25
Class R6-hypothetical 5% return	$1,000.00	$1,043.80	$6.33	1.25
China Growth Fund
Class I-actual return	$1,000.00	$812.76	$4.63	1.03
Class I-hypothetical 5% return	$1,000.00	$1,044.89	$5.22	1.03
Class R6-actual return	$1,000.00	$812.76	$4.40	0.98
Class R6-hypothetical 5% return	$1,000.00	$1,045.14	$4.97	0.98
Emerging Markets Debt Fund
Class I-actual return	$1,000.00	$793.54	$3.11	0.70
Class I-hypothetical 5% return	$1,000.00	$1,046.53	$3.55	0.70
Class R6-actual return	$1,000.00	$793.76	$2.89	0.65
Class R6-hypothetical 5% return	$1,000.00	$1,046.78	$3.30	0.65

174

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Fund Expenses (Unaudited)

Expense Example	Beginning Account Value 1/1/2022	Ending Account Value 6/30/2022	Expenses Paid During the Period (a)	Annualized Expense Ratio
Macro Allocation Fund (In Liquidation)
Class N-actual return	$1,000.00	$988.90	$6.26	1.27	%
Class N-hypothetical 5% return	$1,000.00	$1,043.70	$6.44	1.27
Class I-actual return	$1,000.00	$989.75	$5.03	1.02
Class I-hypothetical 5% return	$1,000.00	$1,044.94	$5.17	1.02
Class R6-actual return	$1,000.00	$989.75	$4.79	0.97
Class R6-hypothetical 5% return	$1,000.00	$1,045.19	$4.92	0.97

(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, 181 and divided by 365 (to reflect the one-half year period).
(b)	For the period March 16, 2022 (Commencement of Operations) to June 30, 2022.

June 30, 2022

William Blair Funds

175

BOARD OF TRUSTEES (as of August 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

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

Mark C. Thompson, CFA, Senior Vice President

Vivian Lin Thurston, CFA, Senior Vice President

Dan Zelazny, Senior Vice President

Matthew Fleming, CFA, 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 64121-913

176

Semiannual Report

June 30, 2022


William Blair Funds

U.S. EQUITY	GLOBAL EQUITY	EMERGING MARKETS DEBT
Growth Fund	Global Leaders Fund	EMERGING MARKETS DEBT
Large Cap Growth Fund	INTERNATIONAL EQUITY	Emerging Markets Debt Fund
Mid Cap Growth Fund	INTERNATIONAL EQUITY
Mid Cap Value Fund	International Leaders Fund	MULTI-ASSET AND ALTERNATIVE
Small-Mid Cap Core Fund	International Growth Fund	MULTI-ASSET AND ALTERNATIVE
Small-Mid Cap Growth Fund	Institutional International Growth Fund	Macro Allocation Fund
Small Cap Growth Fund	International Small Cap Growth Fund
Small Cap Value Fund	Emerging Markets Leaders Fund
	Emerging Markets Growth Fund
	Emerging Markets Small Cap Growth Fund
	China Growth 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

Not applicable to this filing.

Item 3.

Audit Committee Financial Expert

Not applicable to this filing.

Item 4.

Principal Accountant Fees and Services

Not applicable to this filing.

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

Not applicable to this filing.

13. (a) (2) (1)

Certification of Principal Executive Officer Required by Rule 30a-2(a) of the Investment Company Act of 1940 is filed as an exhibit hereto.

13. (a) (2) (2)

Certification of Principal Financial Officer Required by Rule 30a-2(a) of the Investment Company Act of 1940 is filed as an exhibit hereto.

13. (a) (3)

Not applicable to this Registrant.

13. (a) (4)

Not applicable to this filing.

13. (b)

Certifications of the Principal Executive Officer and Principal Financial Officer of the issuer as required by Rule 30a-2(b) of the Investment Company Act of 1940 are filed as exhibits hereto.

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: August 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: August 25, 2022

/s/ John M. Raczek

By:

John M. Raczek

Treasurer

(Principal Financial Officer)

Date: August 25, 2022

William Blair Funds N-CSRSCertified semi-annual shareholder report (management investment company)