UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act File Number 811-5344
William Blair Funds
(Exact name of registrant as specified in charter)
150 North Riverside Plaza, Chicago, IL | 60606 | |
(Address of principal executive offices) | (Zip Code) |
Stephanie G. Braming, Principal Executive Officer
William Blair Funds
150 North Riverside Plaza, Chicago, IL 60606
(Name and address of agent for service)
Registrant’s telephone number, including area code: 312-236-1600
Date of fiscal year end: December 31
Date of reporting period: December 31, 2023
Item 1. December 31, 2023 Annual Reports transmitted to shareholders.
December 31, 2023 | |||
William Blair Funds Annual Report | |||
Table of Contents | |
December 31, 2023 | William Blair Funds | 1 |
The views expressed in the commentary for each Fund reflect those of the portfolio management team only through the end of the period of the report as stated on the cover. The portfolio management team’s views are subject to change at any time based on market and other conditions and should not be construed as a recommendation. Statements involving predictions, assessments, analyses, or outlook for individual securities, industries, market sectors, and/or markets involve risks and uncertainties, and there is no guarantee they will come to pass.
This report is submitted for the general information of the shareholders of William Blair Funds. It is not authorized for distribution to prospective Fund investors unless accompanied or preceded by the Fund’s prospectus. Please carefully consider a Fund’s investment objectives, risks, charges, and expenses before investing. This and other information is contained in the Fund’s prospectus, which you may obtain by calling 1-800-742-7272. Read it carefully before you invest or send money.
2 | Annual Report | December 31, 2023 |
U.S. Growth & Core Market Review and Outlook
U.S. equity indices had positive returns for the year ended December 31, 2023.
During the first half of the year, there was a wide range of performance across style and size dimensions. Despite investors’ concerns regarding regional bank failures and higher interest rates, positive developments such as robust jobs growth and moderating inflation rates provided a strong counterbalance for the market. Against this backdrop, the U.S. economy produced solid growth in the first half of the year as Gross Domestic Product (GDP) grew at an annualized rate of 2.1% in the second quarter, modestly below the first quarter’s expansion of 2.2%.
Mid-year, a brief equity market rally was fueled by optimism that the Federal Reserve (Fed) had guided the economy to a soft landing and policy tightening would soon come to an end. That enthusiasm, along with stock prices, faded as fears of persistent inflation caused investors to price in the prospect of an extended period of higher interest rates. U.S. Treasury yields marched higher, reaching multi-year highs, and the U.S. dollar strengthened as investors digested the Fed’s interest rate moves and forward-looking commentary.
U.S. equity indices advanced in the fourth quarter, with notable strength in November and December. This followed inflation data indicating continued moderation and a pivot to dovish comments from the Fed, which led to the belief that the Fed had reached peak interest rates, potentially leading to earlier rate cuts in 2024 than previously anticipated. In turn, U.S. Treasury yields retreated and stocks rallied over the final two months of the year.
Moderating U.S. inflation rates and the prospect of easing Fed policy has increased sentiment for a soft landing for the U.S. economy. However, the cumulative effect of the Fed’s two-year rate-hiking cycle is still unfolding. The transition to higher interest rates, and subsequently increased borrowing costs for consumers and businesses, may lead to slower than expected economic growth. Moderation in consumer spending and more limited pricing power for corporations, as inflation eases, pose potential headwinds for topline growth.
Against this backdrop, companies with strong balance sheets, durable business models, sustainable cash flow, and the ability to self-fund growth are likely to be in an advantaged position relative to peers. We believe our philosophy of identifying durable businesses whose stocks present attractive risk/reward opportunities should serve us well in a variety of economic environments, as it has historically.
December 31, 2023 | William Blair Funds | 3 |
U.S. Value Market Review and Outlook
2023 was a year characterized by uncertainty in which investors faced an environment with little conviction nor a clear direction. After rising sharply in the second and third quarters, interest rates peaked in the fourth quarter fueled by the potential for a more accommodative Fed policy in 2024, which allowed investors to enjoy a broad-based relief rally in the fourth quarter. Similar to interest rates, oil prices peaked in late September and declined sharply throughout the fourth quarter. In the fourth quarter investors bid up cyclicals, small caps and lower quality names which had been lagging substantially in the first three quarters.
While we were pleased to witness the market rally in the fourth quarter, we are concerned that perhaps investors may be too optimistic in the near-term. For example, while the Fed specifically cited the potential for three future rate cuts, several datapoints suggest that the market is discounting six in 2024. Further, it seems inconsistent for the market to expect six rates cuts while at the same time expecting 11% earnings growth for the S&P 500 index. Said another way, if that many cuts do occur in 2024, it is probable that the economy will have significantly deteriorated.
Despite this caution (and the recent market increase), small-to-mid cap stocks trade at a discount to larger peers and we believe they are attractively valued on their own long-term history. We are also encouraged by the recent uptick in merger activity, a trend which typically favors smaller and mid-sized companies. Lastly, as always, we strive to identify high quality companies whose stock prices already reflect an excessive amount of skepticism. Therefore, in an environment where growth may be slowing and earnings estimates could be too high, we believe the Fund is well positioned. Historically, these periods have also provided fertile ground to find attractive investments and we are prepared to act quickly should the opportunity arise.
4 | Annual Report | December 31, 2023 |
December 31, 2023 | William Blair Funds | 5 |
Growth Fund
Performance Highlights (Unaudited)
Average Annual Total Returns through 12/31/2023
1 Year | 3 Year | 5 Year | 10 Year | Since Inception(a) | ||||||||||||||||
Class N | 37.76 | % | 5.77 | % | 16.25 | % | 11.92 | % | — | % | ||||||||||
Class I | 38.15 | 6.06 | 16.57 | 12.25 | — | |||||||||||||||
Class R6 | 38.19 | 6.12 | — | — | 13.50 | |||||||||||||||
Russell 3000® Growth Index | 41.21 | 8.08 | 18.85 | 14.33 | 15.60 | |||||||||||||||
S&P 500® Index | 26.29 | 10.00 | 15.69 | 12.03 | 12.94 |
(a) | Since inception is for the period from May 2, 2019 (Commencement of Operations) to December 31, 2023. |
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are average annual total returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272, or visit our Web site at www.williamblairfunds.com. From time to time, the investment adviser may waive fees or reimburse expenses for the Fund. Without these waivers/reimbursements, performance would be lower. Class N shares are not subject to a sales load. Class I shares are not subject to a sales load or distribution (Rule 12b-1) fees. Class R6 shares are not subject to a sales load, distribution (Rule 12b-1) fees, or sub-transfer agent fees.
The performance highlights and graph presented above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The Russell 3000® Growth Index consists of large, medium, and small capitalization companies with above average price-to-book ratios and forecasted growth rates. The index is weighted by market capitalization and large/medium/small companies make up approximately 80%/15%/5% of the index.
The S&P 500® Index indicates broad larger capitalization equity market performance.
This report identifies the Fund’s investments on December 31, 2023. These holdings are subject to change. Not all stocks in the Fund performed the same, nor is there any guarantee that these stocks will perform as well in the future. Market forecasts provided in this report may not necessarily come to pass.
Sector Diversification (Unaudited)
The sector diversification shown is based on the total long-term securities.
6 | Annual Report | December 31, 2023 |
Growth Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks | |||||||||
Information Technology—34.5% | |||||||||
* | Advanced Micro Devices, Inc. | 43,596 | $ | 6,426 | |||||
* | Dynatrace, Inc. | 57,413 | 3,140 | ||||||
Microsoft Corp. | 63,473 | 23,868 | |||||||
* | MongoDB, Inc. | 3,927 | 1,606 | ||||||
* | Nice Ltd.—ADR | 13,960 | 2,785 | ||||||
NVIDIA Corp. | 22,505 | 11,145 | |||||||
* | Palo Alto Networks, Inc. | 27,491 | 8,107 | ||||||
Power Integrations, Inc. | 18,480 | 1,517 | |||||||
* | Pure Storage, Inc. | 83,588 | 2,981 | ||||||
* | ServiceNow, Inc. | 8,324 | 5,881 | ||||||
Texas Instruments, Inc. | 25,488 | 4,345 | |||||||
* | Tyler Technologies, Inc. | 7,409 | 3,098 | ||||||
* | Vertex, Inc. | 68,484 | 1,845 | ||||||
* | Workday, Inc. | 13,073 | 3,609 | ||||||
* | Workiva, Inc. | 22,961 | 2,331 | ||||||
82,684 | |||||||||
Health Care—13.8% | |||||||||
Abbott Laboratories | 41,707 | 4,591 | |||||||
* | HealthEquity, Inc. | 23,372 | 1,550 | ||||||
* | Intuitive Surgical, Inc. | 17,478 | 5,896 | ||||||
* | Repligen Corp. | 15,047 | 2,705 | ||||||
* | Treace Medical Concepts, Inc. | 149,338 | 1,904 | ||||||
UnitedHealth Group, Inc. | 18,173 | 9,568 | |||||||
* | Veeva Systems, Inc. | 12,500 | 2,407 | ||||||
Zoetis, Inc. | 22,513 | 4,443 | |||||||
33,064 | |||||||||
Consumer Discretionary—12.6% | |||||||||
* | Amazon.com, Inc. | 116,810 | 17,748 | ||||||
* | Bright Horizons Family Solutions, Inc. | 27,720 | 2,613 | ||||||
* | Five Below, Inc. | 16,678 | 3,555 | ||||||
NIKE, Inc. | 35,758 | 3,882 | |||||||
* | Skyline Champion Corp. | 31,353 | 2,328 | ||||||
30,126 | |||||||||
Communication Services—8.9% | |||||||||
* | Alphabet, Inc. | 122,143 | 17,062 | ||||||
Warner Music Group Corp. | 89,166 | 3,191 | |||||||
* | ZipRecruiter, Inc. | 68,284 | 949 | ||||||
21,202 | |||||||||
Financials—8.7% | |||||||||
Apollo Global Management, Inc. | 35,672 | 3,324 | |||||||
Carlyle Group, Inc. | 77,524 | 3,154 | |||||||
Everest Group Ltd.† | 7,420 | 2,624 | |||||||
Mastercard, Inc. | 27,548 | 11,750 | |||||||
20,852 |
Shares or | |||||||||
Principal | |||||||||
Issuer | Amount | Value | |||||||
Common Stocks—(continued) | |||||||||
Industrials—7.8% | |||||||||
* | ACV Auctions, Inc. | 204,822 | $ | 3,103 | |||||
Brink’s Co. | 44,826 | 3,942 | |||||||
* | Chart Industries, Inc. | 15,982 | 2,179 | ||||||
* | Copart, Inc. | 106,445 | 5,216 | ||||||
* | Kornit Digital Ltd.† | 70,053 | 1,342 | ||||||
* | Verra Mobility Corp. | 121,692 | 2,803 | ||||||
18,585 | |||||||||
Consumer Staples—6.0% | |||||||||
Coca-Cola Co. | 80,746 | 4,758 | |||||||
Estee Lauder Cos., Inc. | 9,926 | 1,452 | |||||||
Lancaster Colony Corp. | 15,791 | 2,627 | |||||||
* | Performance Food Group Co. | 47,086 | 3,256 | ||||||
* | Vital Farms, Inc. | 138,398 | 2,172 | ||||||
14,265 | |||||||||
Energy—4.1% | |||||||||
Cameco Corp. | 86,277 | 3,718 | |||||||
* | Green Plains, Inc. | 62,677 | 1,581 | ||||||
New Fortress Energy, Inc. | 82,644 | 3,118 | |||||||
Whitecap Resources, Inc. | 226,335 | 1,522 | |||||||
9,939 | |||||||||
Real Estate—1.2% | |||||||||
* | CoStar Group, Inc. | 32,640 | 2,852 | ||||||
Materials—1.0% | |||||||||
Crown Holdings, Inc. | 26,318 | 2,424 | |||||||
Total Common Stocks—98.6% (cost $124,885) | 235,993 | ||||||||
Repurchase Agreement | |||||||||
Fixed Income Clearing Corporation, 2.300% dated 12/29/23, due 01/02/24, repurchase price $2,735, collateralized by U.S. Treasury Note, 4.375%, due 08/15/26, valued at $2,789 | $2,734 | 2,734 | |||||||
Total Repurchase Agreement—1.1% (cost $2,734) | 2,734 | ||||||||
Total Investments—99.7% (cost $127,619) | 238,727 | ||||||||
Cash and other assets, less liabilities—0.3% | 665 | ||||||||
Net assets—100.0% | $ | 239,392 |
ADR = American Depository Receipt
* = Non-income producing security
† = U.S. listed foreign security
See accompanying Notes to Financial Statements.
December 31, 2023 | William Blair Funds | 7 |
8 | Annual Report | December 31, 2023 |
Large Cap Growth Fund
Performance Highlights (Unaudited)
Average Annual Total Returns through 12/31/2023
1 Year | 3 Year | 5 Year | 10 Year | Since Inception(a) | ||||||||||||||||
Class N | 40.11 | % | 6.52 | % | 17.51 | % | 14.40 | % | — | % | ||||||||||
Class I | 40.48 | 6.80 | 17.80 | 14.70 | — | |||||||||||||||
Class R6 | 40.56 | 6.86 | — | — | 14.79 | |||||||||||||||
Russell 1000® Growth Index | 42.68 | 8.86 | 19.50 | 14.86 | 16.27 |
(a) | Since inception is for the period from May 2, 2019 (Commencement of Operations) to December 31, 2023. |
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are average annual total returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272, or visit our Web site at www.williamblairfunds.com. From time to time, the investment adviser may waive fees or reimburse expenses for the Fund. Without these waivers/reimbursements, performance would be lower. Class N shares are not subject to a sales load. Class I shares are not subject to a sales load or distribution (Rule 12b-1) fees. Class R6 shares are not subject to a sales load, distribution (Rule 12b-1) fees, or sub-transfer agent fees.
The performance highlights and graph presented above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The Russell 1000® Growth Index consists of large capitalization companies with above average price-to-book ratios and forecasted growth rates.
This report identifies the Fund’s investments on December 31, 2023. These holdings are subject to change. Not all stocks in the Fund performed the same, nor is there any guarantee that these stocks will perform as well in the future. Market forecasts provided in this report may not necessarily come to pass.
Sector Diversification (Unaudited)
The sector diversification shown is based on the total long-term securities.
December 31, 2023 | William Blair Funds | 9 |
Large Cap Growth Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks | |||||||||
Information Technology—39.9% | |||||||||
Accenture PLC† | 170,740 | $ | 59,914 | ||||||
* | Advanced Micro Devices, Inc. | 250,358 | 36,905 | ||||||
Intuit, Inc. | 76,700 | 47,940 | |||||||
Lam Research Corp. | 44,050 | 34,503 | |||||||
Microsoft Corp. | 608,630 | 228,869 | |||||||
NVIDIA Corp. | 187,710 | 92,958 | |||||||
* | Palo Alto Networks, Inc. | 134,850 | 39,765 | ||||||
* | Salesforce, Inc. | 166,680 | 43,860 | ||||||
* | ServiceNow, Inc. | 55,060 | 38,899 | ||||||
Texas Instruments, Inc. | 164,490 | 28,039 | |||||||
651,652 | |||||||||
Consumer Discretionary—15.7% | |||||||||
* | Amazon.com, Inc. | 921,600 | 140,028 | ||||||
* | Chipotle Mexican Grill, Inc. | 17,780 | 40,662 | ||||||
NIKE, Inc. | 223,560 | 24,272 | |||||||
* | O’Reilly Automotive, Inc. | 30,020 | 28,521 | ||||||
Starbucks Corp. | 234,390 | 22,504 | |||||||
255,987 | |||||||||
Communication Services—11.2% | |||||||||
* | Alphabet, Inc. | 1,110,320 | 155,101 | ||||||
* | Live Nation Entertainment, Inc. | 300,612 | 28,137 | ||||||
183,238 | |||||||||
Health Care—10.5% | |||||||||
Agilent Technologies, Inc. | 117,000 | 16,266 | |||||||
* | Intuitive Surgical, Inc. | 128,310 | 43,287 | ||||||
UnitedHealth Group, Inc. | 119,800 | 63,071 | |||||||
* | Veeva Systems, Inc. | 79,810 | 15,365 | ||||||
Zoetis, Inc. | 167,840 | 33,127 | |||||||
171,116 | |||||||||
Financials—8.6% | |||||||||
Apollo Global Management, Inc. | 309,351 | 28,828 | |||||||
Carlyle Group, Inc. | 696,300 | 28,332 | |||||||
Mastercard, Inc. | 195,800 | 83,511 | |||||||
140,671 | |||||||||
Consumer Staples—4.9% | |||||||||
Costco Wholesale Corp. | 72,110 | 47,598 | |||||||
* | Monster Beverage Corp. | 579,110 | 33,363 | ||||||
80,961 | |||||||||
Materials—4.0% | |||||||||
Linde PLC† | 88,300 | 36,266 | |||||||
Martin Marietta Materials, Inc. | 57,870 | 28,872 | |||||||
65,138 | |||||||||
Industrials—3.0% | |||||||||
* | Copart, Inc. | 727,220 | 35,634 | ||||||
* | Uber Technologies, Inc. | 232,370 | 14,307 | ||||||
49,941 | |||||||||
Real Estate—1.6% | |||||||||
* | CoStar Group, Inc. | 296,830 | 25,940 | ||||||
Total Common Stocks—99.4% (cost $1,134,334) | 1,624,644 |
Issuer | Principal Amount | Value | |||||||
Repurchase Agreement | |||||||||
Fixed Income Clearing Corporation, 2.300% dated 12/29/23, due 01/02/24, repurchase price $7,344, collateralized by U.S. Treasury Inflation-Indexed Note, 0.125%, due 07/15/31, valued at $7,489 | $7,342 | $ | 7,342 | ||||||
Total Repurchase Agreement—0.5% (cost $7,342) | 7,342 | ||||||||
Total Investments—99.9% (cost $1,141,676) | 1,631,986 | ||||||||
Cash and other assets, less liabilities—0.1% | 2,116 | ||||||||
Net assets—100.0% | $ | 1,634,102 |
† = U.S. listed foreign security
* = Non-income producing security
See accompanying Notes to Financial Statements.
10 | Annual Report | December 31, 2023 |
December 31, 2023 | William Blair Funds | 11 |
Mid Cap Value Fund
Performance Highlights (Unaudited)
Average Annual Total Returns through 12/31/2023 | ||||||||
1 Year | Since Inception(a) | |||||||
Class I. | 13.21 | % | 2.82 | % | ||||
Class R6 | 13.14 | 2.87 | ||||||
Russell Midcap® Value Index | 12.71 | 3.22 |
(a) | Since inception is for the period from March 16, 2022 (Commencement of Operations) to December 31, 2023. |
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.
This report identifies the Fund’s investments on December 31, 2023. These holdings are subject to change. Not all stocks in the Fund performed the same, nor is there any guarantee that these stocks will perform as well in the future. Market forecasts provided in this report may not necessarily come to pass.
Sector Diversification (Unaudited)
The sector diversification shown is based on the total long-term securities.
12 | Annual Report | December 31, 2023 |
Mid Cap Value Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks | |||||||||
Industrials—17.8% | |||||||||
Acuity Brands, Inc. | 146 | $ | 30 | ||||||
AGCO Corp. | 218 | 26 | |||||||
* | Alaska Air Group, Inc. | 662 | 26 | ||||||
Allegion PLC† | 187 | 24 | |||||||
Flowserve Corp. | 684 | 28 | |||||||
ITT, Inc. | 122 | 14 | |||||||
Johnson Controls International PLC† | 378 | 22 | |||||||
Knight-Swift Transportation Holdings, Inc. | 430 | 25 | |||||||
Snap-on, Inc. | 120 | 35 | |||||||
Timken Co. | 372 | 30 | |||||||
260 | |||||||||
Consumer Discretionary—12.5% | |||||||||
Advance Auto Parts, Inc. | 345 | 21 | |||||||
BorgWarner, Inc. | 710 | 26 | |||||||
Brunswick Corp. | 262 | 25 | |||||||
LKQ Corp. | 511 | 25 | |||||||
Ralph Lauren Corp. | 231 | 33 | |||||||
Toll Brothers, Inc. | 309 | 32 | |||||||
Whirlpool Corp. | 165 | 20 | |||||||
182 | |||||||||
Information Technology—12.4% | |||||||||
Amdocs Ltd.† | 288 | 25 | |||||||
* | Check Point Software Technologies Ltd.† | 186 | 28 | ||||||
Cognizant Technology Solutions Corp. | 366 | 28 | |||||||
* | Flex Ltd.† | 906 | 28 | ||||||
Hewlett Packard Enterprise Co. | 1,493 | 25 | |||||||
Jabil, Inc. | 164 | 21 | |||||||
Skyworks Solutions, Inc. | 229 | 26 | |||||||
181 | |||||||||
Financials—11.9% | |||||||||
* | Arch Capital Group Ltd.† | 264 | 20 | ||||||
East West Bancorp, Inc. | 348 | 25 | |||||||
Hartford Financial Services Group, Inc. | 330 | 26 | |||||||
Huntington Bancshares, Inc. | 1,571 | 20 | |||||||
Invesco Ltd.† | 1,440 | 26 | |||||||
KKR & Co., Inc. | 339 | 28 | |||||||
Willis Towers Watson PLC† | 117 | 28 | |||||||
173 | |||||||||
Health Care—11.5% | |||||||||
Cencora, Inc. | 138 | 28 | |||||||
* | Centene Corp. | 336 | 25 | ||||||
Encompass Health Corp. | 361 | 24 | |||||||
* | Envista Holdings Corp. | 805 | 19 | ||||||
* | Henry Schein, Inc. | 196 | 15 | ||||||
* | Hologic, Inc. | 139 | 10 | ||||||
Laboratory Corp. of America Holdings | 115 | 26 | |||||||
Viatris, Inc. | 1,789 | 20 | |||||||
167 |
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Materials—7.3% | |||||||||
* | Axalta Coating Systems Ltd.† | 827 | $ | 28 | |||||
Crown Holdings, Inc. | 298 | 27 | |||||||
Huntsman Corp. | 987 | 25 | |||||||
PPG Industries, Inc. | 181 | 27 | |||||||
107 | |||||||||
Energy—6.9% | |||||||||
APA Corp. | 636 | 23 | |||||||
Coterra Energy, Inc. | 777 | 20 | |||||||
Diamondback Energy, Inc. | 163 | 25 | |||||||
Phillips 66 | 240 | 32 | |||||||
100 | |||||||||
Real Estate—6.7% | |||||||||
Camden Property Trust | 186 | 18 | |||||||
Host Hotels & Resorts, Inc. | 1,485 | 29 | |||||||
Regency Centers Corp. | 378 | 25 | |||||||
VICI Properties, Inc. | 773 | 25 | |||||||
97 | |||||||||
Consumer Staples—5.1% | |||||||||
Ingredion, Inc. | 266 | 29 | |||||||
Molson Coors Beverage Co. | 403 | 24 | |||||||
Tyson Foods, Inc. | 404 | 22 | |||||||
75 | |||||||||
Utilities—3.4% | |||||||||
Entergy Corp. | 243 | 25 | |||||||
PPL Corp. | 939 | 25 | |||||||
50 | |||||||||
Communication Services—0.9% | |||||||||
* | Warner Bros Discovery, Inc. | 1,193 | 14 | ||||||
Total Common Stocks—96.4% (cost $1,332) | 1,406 | ||||||||
Total Investments—96.4% (cost $1,332) | 1,406 | ||||||||
Cash and other assets, | |||||||||
less liabilities—3.6% | 52 | ||||||||
Net assets—100.0% | $ | 1,458 |
* = Non-income producing security
† = U.S. listed foreign security
See accompanying Notes to Financial Statements.
December 31, 2023 | William Blair Funds | 13 |
14 | Annual Report | December 31, 2023 |
Small-Mid Cap Core Fund
Performance Highlights (Unaudited)
Average Annual Total Returns through 12/31/2023 | ||||||||||||
1 Year | 3 Year | Since Inception(a) | ||||||||||
Class I | 13.26 | % | 5.94 | % | 10.56 | % | ||||||
Class R6 | 13.30 | 5.98 | 10.59 | |||||||||
Russell 2500TM Index | 17.42 | 4.24 | 9.57 |
(a) | Since inception is for the period from October 1, 2019 (Commencement of Operations) to December 31, 2023. |
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are average annual total returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272, or visit our Web site at www.williamblairfunds.com. Investing in smaller and medium capitalization companies involves special risks, including higher volatility and lower liquidity. Smaller and medium capitalization stocks are also more sensitive to purchase/sale transactions and changes in the issuer’s financial condition. From time to time, the investment adviser may waive fees or reimburse expenses for the Fund. Without these waivers/reimbursements, performance would be lower. Class I shares are not subject to a sales load or distribution (Rule 12b-1) fees. Class R6 shares are not subject to a sales load, distribution (Rule 12b-1) fees, or sub-transfer agent fees.
The performance highlights and graph presented above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The Russell 2500TMIndex measures the performance of those Russell 2500 companies with above average price-to-book ratios and forecasted growth rates.
This report identifies the Fund’s investments on December 31, 2023. These holdings are subject to change. Not all stocks in the Fund performed the same, nor is there any guarantee that these stocks will perform as well in the future. Market forecasts provided in this report may not necessarily come to pass.
Sector Diversification (Unaudited)
The sector diversification shown is based on the total long-term securities.
December 31, 2023 | William Blair Funds | 15 |
Small-Mid Cap Core Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks | |||||||||
Industrials—22.8% | |||||||||
* | ACV Auctions, Inc. | 179,544 | $ | 2,720 | |||||
* | Atkore, Inc. | 10,397 | 1,664 | ||||||
* | Axon Enterprise, Inc. | 12,645 | 3,267 | ||||||
Brink’s Co. | 34,565 | 3,040 | |||||||
* | Builders FirstSource, Inc. | 17,889 | 2,986 | ||||||
BWX Technologies, Inc. | 61,904 | 4,750 | |||||||
* | Casella Waste Systems, Inc. | 43,896 | 3,751 | ||||||
* | Chart Industries, Inc. | 19,313 | 2,633 | ||||||
* | ExlService Holdings, Inc. | 69,237 | 2,136 | ||||||
* | GXO Logistics, Inc. | 47,244 | 2,889 | ||||||
Lincoln Electric Holdings, Inc. | 6,671 | 1,451 | |||||||
* | Mercury Systems, Inc. | 91,745 | 3,355 | ||||||
* | Shoals Technologies Group, Inc. | 78,091 | 1,214 | ||||||
Tecnoglass, Inc.† | 33,391 | 1,526 | |||||||
* | Trex Co., Inc. | 22,422 | 1,856 | ||||||
* | Verra Mobility Corp. | 135,950 | 3,131 | ||||||
* | WillScot Mobile Mini Holdings Corp. | 55,203 | 2,457 | ||||||
44,826 | |||||||||
Health Care—14.8% | |||||||||
* | Acadia Healthcare Co., Inc. | 27,411 | 2,131 | ||||||
* | Avantor, Inc. | 50,355 | 1,150 | ||||||
Bio-Techne Corp. | 25,499 | 1,968 | |||||||
* | Certara, Inc. | 87,337 | 1,536 | ||||||
Chemed Corp. | 5,926 | 3,465 | |||||||
Encompass Health Corp. | 54,911 | 3,664 | |||||||
* | Globus Medical, Inc. | 33,983 | 1,811 | ||||||
* | Insulet Corp. | 14,407 | 3,126 | ||||||
* | Merit Medical Systems, Inc. | 52,452 | 3,984 | ||||||
* | Neogen Corp. | 113,682 | 2,286 | ||||||
* | Repligen Corp. | 7,310 | 1,314 | ||||||
* | Sotera Health Co. | 85,237 | 1,436 | ||||||
* | Veradigm, Inc. | 118,473 | 1,243 | ||||||
29,114 | |||||||||
Financials—12.9% | |||||||||
* | BRP Group, Inc. | 7,777 | 187 | ||||||
Carlyle Group, Inc. | 94,817 | 3,858 | |||||||
Columbia Banking System, Inc. | 109,232 | 2,914 | |||||||
East West Bancorp, Inc. | 44,894 | 3,230 | |||||||
* | Euronet Worldwide, Inc. | 10,495 | 1,065 | ||||||
Everest Group Ltd.† | 7,875 | 2,785 | |||||||
Tradeweb Markets, Inc. | 27,035 | 2,457 | |||||||
Virtu Financial, Inc. | 128,933 | 2,612 | |||||||
Western Alliance Bancorp | 56,575 | 3,722 | |||||||
Wintrust Financial Corp. | 26,082 | 2,419 | |||||||
25,249 | |||||||||
Consumer Discretionary—11.9% | |||||||||
ADT, Inc. | 233,334 | 1,591 | |||||||
* | Boot Barn Holdings, Inc. | 13,612 | 1,045 | ||||||
* | Bright Horizons Family Solutions, Inc. | 40,032 | 3,773 | ||||||
* | Garrett Motion, Inc. | 178,351 | 1,725 | ||||||
* | Grand Canyon Education, Inc. | 15,954 | 2,106 | ||||||
Installed Building Products, Inc. | 9,349 | 1,709 | |||||||
* | National Vision Holdings, Inc. | 110,614 | 2,315 | ||||||
Pool Corp. | 7,655 | 3,052 | |||||||
* | Revolve Group, Inc. | 40,592 | 673 | ||||||
Signet Jewelers Ltd.† | 20,736 | 2,224 | |||||||
* | Skyline Champion Corp. | 41,148 | 3,056 | ||||||
23,269 |
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Information Technology—10.0% | |||||||||
* | Alarm.com Holdings, Inc. | 21,162 | $ | 1,367 | |||||
* | Ambarella, Inc.† | 15,920 | 976 | ||||||
* | Calix, Inc. | 36,589 | 1,598 | ||||||
* | Clearwater Analytics Holdings, Inc. | 92,001 | 1,843 | ||||||
Cognex Corp. | 29,770 | 1,243 | |||||||
* | Dynatrace, Inc. | 48,534 | 2,654 | ||||||
Entegris, Inc. | 14,775 | 1,770 | |||||||
* | JFrog Ltd.† | 48,377 | 1,674 | ||||||
* | Lattice Semiconductor Corp. | 19,666 | 1,357 | ||||||
* | Nice Ltd.—ADR | 12,980 | 2,590 | ||||||
* | Onto Innovation, Inc. | 8,494 | 1,299 | ||||||
* | Pure Storage, Inc. | 33,696 | 1,202 | ||||||
19,573 | |||||||||
Materials—7.9% | |||||||||
Berry Global Group, Inc. | 47,839 | 3,224 | |||||||
CF Industries Holdings, Inc. | 31,953 | 2,540 | |||||||
Crown Holdings, Inc. | 34,302 | 3,159 | |||||||
Eagle Materials, Inc. | 12,441 | 2,523 | |||||||
FMC Corp. | 19,919 | 1,256 | |||||||
Sylvamo Corp. | 58,313 | 2,864 | |||||||
15,566 | |||||||||
Real Estate—6.3% | |||||||||
Agree Realty Corp. | 35,190 | 2,215 | |||||||
Americold Realty Trust, Inc. | 105,083 | 3,181 | |||||||
Equity LifeStyle Properties, Inc. | 43,790 | 3,089 | |||||||
Healthcare Realty Trust, Inc. | 146,318 | 2,521 | |||||||
Pebblebrook Hotel Trust | 90,524 | 1,447 | |||||||
12,453 | |||||||||
Energy—6.1% | |||||||||
Cameco Corp. | 62,884 | 2,710 | |||||||
* | Green Plains, Inc. | 50,667 | 1,278 | ||||||
New Fortress Energy, Inc. | 89,349 | 3,371 | |||||||
TechnipFMC PLC† | 144,563 | 2,912 | |||||||
Whitecap Resources, Inc. | 246,444 | 1,657 | |||||||
11,928 | |||||||||
Consumer Staples—3.9% | |||||||||
Inter Parfums, Inc. | 17,670 | 2,544 | |||||||
Lancaster Colony Corp. | 14,380 | 2,393 | |||||||
Primo Water Corp. | 177,468 | 2,671 | |||||||
7,608 | |||||||||
Utilities—1.5% | |||||||||
IDACORP, Inc. | 29,198 | 2,871 | |||||||
Communication Services—1.0% | |||||||||
* | Live Nation Entertainment, Inc. | 10,968 | 1,026 | ||||||
* | ZipRecruiter, Inc. | 64,508 | 897 | ||||||
1,923 | |||||||||
Total Common Stocks—99.1% (cost $177,590) | 194,380 |
See accompanying Notes to Financial Statements.
16 | Annual Report | December 31, 2023 |
Small-Mid Cap Core Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Principal Amount | Value | ||||||
Repurchase Agreement | ||||||||
Fixed Income Clearing Corporation, 2.300% dated 12/29/23, due 01/02/24, repurchase price $1,865, collateralized by U.S. Treasury Note, 3.875%, due 12/31/27, valued at $1,902 | $1,864 | $ | 1,864 | |||||
Total Repurchase Agreement—0.9% (cost $1,864) | 1,864 | |||||||
Total Investments—100.0% (cost $179,454) | 196,244 | |||||||
Liabilities, plus cash and other assets—(0.0)% | (64 | ) | ||||||
Net assets—100.0% | $ | 196,180 |
ADR = American Depository Receipt
* = Non-income producing security
† = U.S. listed foreign security
See accompanying Notes to Financial Statements.
December 31, 2023 | William Blair Funds | 17 |
18 | Annual Report | December 31, 2023 |
Small-Mid Cap Growth Fund
Performance Highlights (Unaudited)
Average Annual Total Returns through 12/31/2023 | ||||||||||||||||||||
1 Year | 3 Year | 5 Year | 10 Year | Since Inception(a) | ||||||||||||||||
Class N | 17.64 | % | (0.69 | )% | 11.02 | % | 9.82 | % | — | % | ||||||||||
Class I | 17.93 | (0.44 | ) | 11.30 | 10.10 | — | ||||||||||||||
Class R6 | 17.95 | (0.39 | ) | — | — | 7.73 | ||||||||||||||
Russell 2500TM Growth Index | 18.93 | (2.68 | ) | 11.43 | 8.78 | 7.65 |
(a) | Since inception is for the period from May 2, 2019 (Commencement of Operations) to December 31, 2023. |
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are average annual total returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272, or visit our Web site at www.williamblairfunds.com. Investing in smaller and medium capitalization companies involves special risks, including higher volatility and lower liquidity. Smaller and medium capitalization stocks are also more sensitive to purchase/sale transactions and changes in the issuer’s financial condition. From time to time, the investment adviser may waive fees or reimburse expenses for the Fund. Without these waivers/reimbursements, performance would be lower. Class N shares are not subject to a sales load. Class I shares are not subject to a sales load or distribution (Rule 12b-1) fees. Class R6 shares are not subject to a sales load, distribution (Rule 12b-1) fees, or sub-transfer agent fees.
The performance highlights and graph presented above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The Russell 2500TM Growth Index measures the performance of those Russell 2500 companies with above average price-to-book ratios and forecasted growth rates.
This report identifies the Fund’s investments on December 31, 2023. These holdings are subject to change. Not all stocks in the Fund performed the same, nor is there any guarantee that these stocks will perform as well in the future. Market forecasts provided in this report may not necessarily come to pass.
Sector Diversification (Unaudited)
The sector diversification shown is based on the total long-term securities.
December 31, 2023 | William Blair Funds | 19 |
Small-Mid Cap Growth Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks | |||||||||
Health Care—25.4% | |||||||||
* | Acadia Healthcare Co., Inc. | 419,280 | $ | 32,603 | |||||
* | Amicus Therapeutics, Inc. | 1,712,900 | 24,306 | ||||||
Bio-Techne Corp. | 359,000 | 27,701 | |||||||
* | Blueprint Medicines Corp. | 277,604 | 25,606 | ||||||
* | Certara, Inc. | 832,083 | 14,636 | ||||||
* | Charles River Laboratories International, Inc. | 71,237 | 16,841 | ||||||
Chemed Corp. | 75,066 | 43,895 | |||||||
Encompass Health Corp. | 704,717 | 47,019 | |||||||
* | Evolent Health, Inc. | 726,000 | 23,980 | ||||||
* | Globus Medical, Inc. | 235,395 | 12,544 | ||||||
* | HealthEquity, Inc. | 333,308 | 22,098 | ||||||
* | Insmed, Inc. | 615,951 | 19,088 | ||||||
* | Inspire Medical Systems, Inc. | 121,342 | 24,685 | ||||||
* | Insulet Corp. | 136,346 | 29,584 | ||||||
* | Merit Medical Systems, Inc. | 474,426 | 36,037 | ||||||
* | Neogen Corp. | 1,131,900 | 22,763 | ||||||
* | Penumbra, Inc. | 142,786 | 35,916 | ||||||
* | Repligen Corp. | 148,700 | 26,736 | ||||||
* | Twist Bioscience Corp. | 552,373 | 20,361 | ||||||
506,399 | |||||||||
Industrials—19.9% | |||||||||
Advanced Drainage Systems, Inc. | 266,700 | 37,509 | |||||||
* | Axon Enterprise, Inc. | 159,358 | 41,167 | ||||||
Brink’s Co. | 360,738 | 31,727 | |||||||
* | Builders FirstSource, Inc. | 179,456 | 29,958 | ||||||
BWX Technologies, Inc. | 631,052 | 48,420 | |||||||
* | Casella Waste Systems, Inc. | 311,261 | 26,600 | ||||||
* | Chart Industries, Inc. | 168,755 | 23,006 | ||||||
* | ExlService Holdings, Inc. | 501,200 | 15,462 | ||||||
HEICO Corp. | 207,356 | 29,536 | |||||||
* | Mercury Systems, Inc. | 857,492 | 31,358 | ||||||
Regal Rexnord Corp. | 93,100 | 13,781 | |||||||
* | Shoals Technologies Group, Inc. | 747,930 | 11,623 | ||||||
* | SiteOne Landscape Supply, Inc. | 100,300 | 16,299 | ||||||
* | Trex Co., Inc. | 324,421 | 26,859 | ||||||
* | WillScot Mobile Mini Holdings Corp. | 304,600 | 13,555 | ||||||
396,860 | |||||||||
Information Technology—18.0% | |||||||||
* | Alarm.com Holdings, Inc. | 328,841 | 21,250 | ||||||
* | Ambarella, Inc.† | 213,600 | 13,092 | ||||||
* | Clearwater Analytics Holdings, Inc. | 924,669 | 18,521 | ||||||
Cognex Corp. | 422,147 | 17,620 | |||||||
* | Dynatrace, Inc. | 710,286 | 38,845 | ||||||
Entegris, Inc. | 145,776 | 17,467 | |||||||
* | Guidewire Software, Inc. | 377,455 | 41,158 | ||||||
* | Lattice Semiconductor Corp. | 213,500 | 14,729 | ||||||
* | Nice Ltd. —ADR | 158,568 | 31,636 | ||||||
* | Novanta, Inc.† | 148,654 | 25,035 | ||||||
* | SPS Commerce, Inc. | 84,600 | 16,399 | ||||||
* | Super Micro Computer, Inc. | 84,600 | 24,048 | ||||||
* | Tenable Holdings, Inc. | 558,188 | 25,710 | ||||||
* | Tyler Technologies, Inc. | 78,100 | 32,655 | ||||||
* | Varonis Systems, Inc. | 480,932 | 21,777 | ||||||
359,942 | |||||||||
Consumer Discretionary—9.6% | |||||||||
* | Bright Horizons Family Solutions, Inc. | 268,278 | 25,283 | ||||||
* | Burlington Stores, Inc. | 89,761 | 17,457 | ||||||
* | Five Below, Inc. | 186,400 | 39,733 | ||||||
* | National Vision Holdings, Inc. | 1,293,276 | 27,068 | ||||||
Pool Corp. | 106,800 | 42,582 | |||||||
* | Revolve Group, Inc. | 815,092 | 13,514 | ||||||
* | TopBuild Corp. | 69,700 | 26,086 | ||||||
191,723 |
Issuer | Shares or Principal Amount | Value | |||||||
Common Stocks—(continued) | |||||||||
Financials—8.0% | |||||||||
Carlyle Group, Inc. | 1,110,300 | $ | 45,178 | ||||||
* | Euronet Worldwide, Inc. | 98,280 | 9,974 | ||||||
Everest Group Ltd.† | 55,400 | 19,588 | |||||||
* | Flywire Corp. | 820,603 | 18,997 | ||||||
Tradeweb Markets, Inc. | 298,680 | 27,144 | |||||||
Virtu Financial, Inc. | 968,836 | 19,629 | |||||||
Western Alliance Bancorp | 292,716 | 19,258 | |||||||
159,768 | |||||||||
Consumer Staples—6.2% | |||||||||
* | elf Beauty, Inc. | 300,100 | 43,317 | ||||||
* | Freshpet, Inc. | 505,179 | 43,829 | ||||||
Lancaster Colony Corp. | 220,030 | 36,611 | |||||||
123,757 | |||||||||
Energy—5.7% | |||||||||
Cameco Corp. | 572,162 | 24,660 | |||||||
* | Kosmos Energy Ltd. | 2,348,900 | 15,761 | ||||||
New Fortress Energy, Inc. | 871,612 | 32,886 | |||||||
Noble Corp. PLC† | 298,000 | 14,352 | |||||||
TechnipFMC PLC† | 585,900 | 11,800 | |||||||
Whitecap Resources, Inc. | 2,181,800 | 14,668 | |||||||
114,127 | |||||||||
Materials—3.8% | |||||||||
CF Industries Holdings, Inc. | 336,531 | 26,754 | |||||||
Crown Holdings, Inc. | 340,687 | 31,374 | |||||||
Eagle Materials, Inc. | 86,400 | 17,526 | |||||||
75,654 | |||||||||
Communication Services—1.2% | |||||||||
* | Live Nation Entertainment, Inc. | 261,000 | 24,430 | ||||||
Real Estate—1.1% | |||||||||
FirstService Corp. | 128,968 | 20,904 | |||||||
Total Common Stocks—98.9% (cost $1,661,590) | 1,973,564 | ||||||||
Rights | |||||||||
Health Care—0.0% | |||||||||
* | Abiomed, Inc. CVR** | 80,133 | — | ||||||
Total Rights—0.0% (cost $82) | — | ||||||||
Repurchase Agreement | |||||||||
Fixed Income Clearing Corporation, 2.300% dated 12/29/23, due 01/02/24, repurchase price $27,828, collateralized by U.S. Treasury Note, 3.875%, due 12/31/27, valued at $28,377 | $27,820 | 27,820 | |||||||
Total Repurchase Agreement—1.4% (cost $27,820) | 27,820 | ||||||||
Total Investments—100.3% (cost $1,689,492) | 2,001,384 | ||||||||
Liabilities, plus cash and other assets—(0.3)% | (6,189 | ) | |||||||
Net assets—100.0% | $ | 1,995,195 |
ADR = American Depository Receipt
CVR = Contingent Value Right
* = Non-income producing security
** = Fair valued pursuant to the Fund’s Valuation Procedures. This holding represents 0.00% of the Fund’s net assets at December 31, 2023.
† = U.S. listed foreign security
See accompanying Notes to Financial Statements.
20 | Annual Report | December 31, 2023 |
December 31, 2023 | William Blair Funds | 21 |
Small-Mid Cap Value Fund
Performance Highlights (Unaudited)
Average Annual Total Returns through 12/31/2023 | ||||
Since Inception(a) | ||||
Class I | 6.45 | % | ||
Class R6 | 6.50 | |||
Russell 2500® Value Index | 10.56 |
(a) | Since inception is for the period from August 17, 2023 (Commencement of Operations) to December 31, 2023. |
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® Value Index measures the performance of the small to mid-cap value segment of the U.S. equity universe. It includes those Russell 2500® companies with lower price-to-book ratios and lower forecasted growth values.
This report identifies the Fund’s investments on December 31, 2023. These holdings are subject to change. Not all stocks in the Fund performed the same, nor is there any guarantee that these stocks will perform as well in the future. Market forecasts provided in this report may not necessarily come to pass.
Sector Diversification (Unaudited)
The sector diversification shown is based on the total long-term securities.
22 | Annual Report | December 31, 2023 |
Small-Mid Cap Value Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks | |||||||||
Industrials—22.5% | |||||||||
ABM Industries, Inc. | 483 | $ | 22 | ||||||
Acuity Brands, Inc. | 116 | 24 | |||||||
AGCO Corp. | 170 | 21 | |||||||
* | Alaska Air Group, Inc. | 519 | 20 | ||||||
Allegion PLC† | 136 | 17 | |||||||
Armstrong World Industries, Inc. | 228 | 22 | |||||||
Flowserve Corp. | 598 | 25 | |||||||
Hillenbrand, Inc. | 417 | 20 | |||||||
* | Hub Group, Inc. | 309 | 28 | ||||||
Knight-Swift Transportation Holdings, Inc. | 357 | 21 | |||||||
Korn Ferry | 296 | 17 | |||||||
Maximus, Inc. | 267 | 22 | |||||||
MillerKnoll, Inc. | 547 | 15 | |||||||
* | OPENLANE, Inc. | 927 | 14 | ||||||
Rush Enterprises, Inc. | 141 | 7 | |||||||
Snap-on, Inc. | 78 | 22 | |||||||
Terex Corp. | 312 | 18 | |||||||
Timken Co. | 245 | 20 | |||||||
355 | |||||||||
Consumer Discretionary—14.7% | |||||||||
* | Adient PLC† | 465 | 17 | ||||||
Advance Auto Parts, Inc. | 276 | 17 | |||||||
Bloomin’ Brands, Inc. | 733 | 21 | |||||||
BorgWarner, Inc. | 558 | 20 | |||||||
Brunswick Corp. | 206 | 20 | |||||||
Carter’s, Inc. | 301 | 23 | |||||||
Cracker Barrel Old Country Store, Inc. | 178 | 14 | |||||||
LKQ Corp. | 408 | 19 | |||||||
Ralph Lauren Corp. | 184 | 26 | |||||||
* | Taylor Morrison Home Corp. | 460 | 24 | ||||||
Whirlpool Corp. | 130 | 16 | |||||||
Winnebago Industries, Inc. | 220 | 16 | |||||||
233 | |||||||||
Information Technology—12.7% | |||||||||
Amdocs Ltd.† | 226 | 20 | |||||||
Belden, Inc. | 236 | 18 | |||||||
* | Check Point Software Technologies Ltd.† | 149 | 23 | ||||||
Hewlett Packard Enterprise Co. | 1,134 | 19 | |||||||
* | IPG Photonics Corp. | 199 | 22 | ||||||
Jabil, Inc. | 129 | 16 | |||||||
Kulicke & Soffa Industries, Inc. | 352 | 19 | |||||||
Methode Electronics, Inc. | 119 | 3 | |||||||
* | Perficient, Inc. | 263 | 17 | ||||||
* | Qorvo, Inc. | 189 | 21 | ||||||
* | Verint Systems, Inc. | 830 | 23 | ||||||
201 | |||||||||
Materials—10.4% | |||||||||
* | Axalta Coating Systems Ltd.† | 799 | 27 | ||||||
Commercial Metals Co. | 414 | 21 | |||||||
Crown Holdings, Inc. | 240 | 22 | |||||||
Greif, Inc. | 261 | 17 | |||||||
Huntsman Corp. | 776 | 20 | |||||||
Minerals Technologies, Inc. | 254 | 18 | |||||||
Orion SA† | 768 | 21 | |||||||
Silgan Holdings, Inc. | 418 | 19 | |||||||
165 |
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Real Estate—9.3% | |||||||||
Camden Property Trust | 128 | $ | 13 | ||||||
Elme Communities | 900 | 13 | |||||||
Empire State Realty Trust, Inc. | 1,966 | 19 | |||||||
Four Corners Property Trust, Inc. | 697 | 18 | |||||||
Host Hotels & Resorts, Inc. | 1,128 | 22 | |||||||
Kite Realty Group Trust | 932 | 21 | |||||||
Regency Centers Corp. | 297 | 20 | |||||||
STAG Industrial, Inc. | 551 | 21 | |||||||
147 | |||||||||
Financials—8.5% | |||||||||
Ameris Bancorp | 412 | 22 | |||||||
Eastern Bankshares, Inc. | 1,225 | 17 | |||||||
Invesco Ltd.† | 1,148 | 20 | |||||||
Pacific Premier Bancorp, Inc. | 632 | 18 | |||||||
Pinnacle Financial Partners, Inc. | 262 | 23 | |||||||
* | Texas Capital Bancshares, Inc. | 241 | 16 | ||||||
Webster Financial Corp. | 355 | 18 | |||||||
134 | |||||||||
Health Care—6.9% | |||||||||
Encompass Health Corp. | 317 | 21 | |||||||
* | Envista Holdings Corp. | 640 | 15 | ||||||
Laboratory Corp. of America Holdings | 92 | 21 | |||||||
* | Lantheus Holdings, Inc. | 265 | 17 | ||||||
* | QuidelOrtho Corp. | 254 | 19 | ||||||
Viatris, Inc. | 1,501 | 16 | |||||||
109 | |||||||||
Energy—4.9% | |||||||||
* | Expro Group Holdings NV† | 1,022 | 16 | ||||||
Matador Resources Co. | 421 | 24 | |||||||
PBF Energy, Inc. | 339 | 15 | |||||||
SM Energy Co. | 587 | 23 | |||||||
78 | |||||||||
Consumer Staples—4.9% | |||||||||
Ingredion, Inc. | 210 | 23 | |||||||
Molson Coors Beverage Co. | 317 | 20 | |||||||
Spectrum Brands Holdings, Inc. | 218 | 17 | |||||||
* | TreeHouse Foods, Inc. | 437 | 18 | ||||||
78 | |||||||||
Utilities—2.2% | |||||||||
Northwestern Energy Group, Inc. | 289 | 15 | |||||||
Spire, Inc. | 306 | 19 | |||||||
34 | |||||||||
Communication Services—0.9% | |||||||||
John Wiley & Sons, Inc. | 437 | 14 | |||||||
Total Common Stocks—97.9% (cost $1,458) | 1,548 | ||||||||
Total Investments—97.9% (cost $1,458) | 1,548 | ||||||||
Cash and other assets, less liabilities—2.1% | 33 | ||||||||
Net assets—100.0% | $ | 1,581 |
* = Non-income producing security
† = U.S. listed foreign security
See accompanying Notes to Financial Statements.
December 31, 2023 | William Blair Funds | 23 |
24 | Annual Report | December 31, 2023 |
Small Cap Growth Fund
Performance Highlights (Unaudited)
Average Annual Total Returns through 12/31/2023
1 Year | 3 Year | 5 Year | 10 Year | Since Inception(a) | ||||||||||||||||
Class N | 16.06 | % | 0.91 | % | 11.69 | % | 9.65 | % | — | % | ||||||||||
Class I | 16.35 | 1.17 | 11.96 | 9.92 | — | |||||||||||||||
Class R6 | 16.44 | 1.24 | — | — | 8.75 | |||||||||||||||
Russell 2000® Growth Index | 18.66 | (3.50 | ) | 9.22 | 7.16 | 5.80 |
(a) | Since inception is for the period from May 2, 2019 (Commencement of Operations) to December 31, 2023. |
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are average annual total returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272, or visit our Web site at www.williamblairfunds.com. Investing in smaller companies involves special risks, including higher volatility and lower liquidity. Smaller capitalization stocks are also more sensitive to purchase/sale transactions and changes in the issuer’s financial condition. From time to time, the investment adviser may waive fees or reimburse expenses for the Fund. Without these waivers/reimbursements, performance would be lower. Class N shares are not subject to a sales load. Class I shares are not subject to a sales load or distribution (Rule 12b-1) fees. Class R6 shares are not subject to a sales load, distribution (Rule 12b-1) fees, or sub-transfer agent fees.
The performance highlights and graph presented above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The Russell 2000® Growth Index is an unmanaged composite of the smallest 2000 stocks of the Russell 3000® Growth Index.
This report identifies the Fund’s investments on December 31, 2023. These holdings are subject to change. Not all stocks in the Fund performed the same, nor is there any guarantee that these stocks will perform as well in the future. Market forecasts provided in this report may not necessarily come to pass.
Sector Diversification (Unaudited)
The sector diversification shown is based on the total long-term securities.
December 31, 2023 | William Blair Funds | 25 |
Small Cap Growth Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks | |||||||||
Health Care—22.6% | |||||||||
* | Acadia Healthcare Co., Inc. | 122,829 | $ | 9,551 | |||||
* | Alignment Healthcare, Inc. | 765,502 | 6,591 | ||||||
* | Amicus Therapeutics, Inc. | 831,140 | 11,794 | ||||||
* | BioLife Solutions, Inc. | 521,000 | 8,466 | ||||||
* | Blueprint Medicines Corp. | 86,150 | 7,946 | ||||||
* | Certara, Inc. | 439,613 | 7,733 | ||||||
Encompass Health Corp. | 228,090 | 15,218 | |||||||
* | Globus Medical, Inc. | 176,400 | 9,400 | ||||||
* | Insmed, Inc. | 319,570 | 9,903 | ||||||
* | Inspire Medical Systems, Inc. | 53,330 | 10,849 | ||||||
* | Ligand Pharmaceuticals, Inc. | 56,980 | 4,070 | ||||||
* | Merit Medical Systems, Inc. | 171,890 | 13,057 | ||||||
* | Mirum Pharmaceuticals, Inc. | 189,120 | 5,583 | ||||||
* | OmniAb, Inc. | 1,015,049 | 6,263 | ||||||
* | OmniAb, Inc. 12.50 Earnout (Acquired 11/02/22, Cost $0)**# | 23,037 | — | ||||||
* | OmniAb, Inc. 15.00 Earnout (Acquired 11/02/22, Cost $0)**# | 23,037 | — | ||||||
* | Sotera Health Co. | 267,060 | 4,500 | ||||||
* | Treace Medical Concepts, Inc. | 788,890 | 10,058 | ||||||
* | Twist Bioscience Corp. | 205,196 | 7,564 | ||||||
* | Veracyte, Inc. | 223,580 | 6,151 | ||||||
* | Veradigm, Inc. | 501,558 | 5,261 | ||||||
* | Vericel Corp. | 253,940 | 9,043 | ||||||
169,001 | |||||||||
Industrials—19.7% | |||||||||
* | ACV Auctions, Inc. | 588,690 | 8,919 | ||||||
Albany International Corp. | 120,605 | 11,846 | |||||||
* | Atkore, Inc. | 71,790 | 11,486 | ||||||
Brink’s Co. | 212,296 | 18,671 | |||||||
BWX Technologies, Inc. | 177,347 | 13,608 | |||||||
* | Casella Waste Systems, Inc. | 196,910 | 16,828 | ||||||
* | Chart Industries, Inc. | 45,696 | 6,230 | ||||||
Douglas Dynamics, Inc. | 256,033 | 7,599 | |||||||
* | Ducommun, Inc. | 133,042 | 6,926 | ||||||
* | Energy Recovery, Inc. | 142,356 | 2,682 | ||||||
* | Kornit Digital Ltd.† | 247,085 | 4,734 | ||||||
* | Mercury Systems, Inc. | 271,006 | 9,911 | ||||||
* | Montrose Environmental Group, Inc. | 178,088 | 5,722 | ||||||
* | Shoals Technologies Group, Inc. | 269,940 | 4,195 | ||||||
* | Verra Mobility Corp. | 485,929 | 11,191 | ||||||
* | WNS Holdings Ltd.—ADR | 103,790 | 6,559 | ||||||
147,107 | |||||||||
Information Technology—18.7% | |||||||||
* | Alarm.com Holdings, Inc. | 146,450 | 9,464 | ||||||
* | Ambarella, Inc.† | 89,840 | 5,506 | ||||||
* | Calix, Inc. | 132,920 | 5,807 | ||||||
* | Clearwater Analytics Holdings, Inc. | 343,651 | 6,883 | ||||||
* | Guidewire Software, Inc. | 107,070 | 11,675 | ||||||
* | JFrog Ltd.† | 315,470 | 10,919 | ||||||
* | Novanta, Inc.† | 58,660 | 9,879 | ||||||
* | Onto Innovation, Inc. | 68,100 | 10,413 | ||||||
* | PDF Solutions, Inc. | 197,081 | 6,334 | ||||||
Power Integrations, Inc. | 73,840 | 6,063 | |||||||
* | PROS Holdings, Inc. | 208,400 | 8,084 | ||||||
* | SiTime Corp. | 33,145 | 4,047 |
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Information Technology—(continued) | |||||||||
* | SPS Commerce, Inc. | 42,660 | $ | 8,269 | |||||
* | Super Micro Computer, Inc. | 27,490 | 7,814 | ||||||
* | Varonis Systems, Inc. | 226,740 | 10,267 | ||||||
* | Vertex, Inc. | 367,493 | 9,900 | ||||||
* | Workiva, Inc. | 84,510 | 8,580 | ||||||
139,904 | |||||||||
Consumer Discretionary—11.4% | |||||||||
* | Boot Barn Holdings, Inc. | 76,554 | 5,876 | ||||||
Cheesecake Factory, Inc. | 228,910 | 8,014 | |||||||
Golden Entertainment, Inc. | 160,810 | 6,421 | |||||||
* | Grand Canyon Education, Inc. | 58,770 | 7,760 | ||||||
Installed Building Products, Inc. | 40,610 | 7,424 | |||||||
* | National Vision Holdings, Inc. | 458,892 | 9,605 | ||||||
* | OneSpaWorld Holdings Ltd.† | 470,540 | 6,635 | ||||||
* | Revolve Group, Inc. | 147,437 | 2,444 | ||||||
Signet Jewelers Ltd.† | 72,610 | 7,788 | |||||||
* | Skyline Champion Corp. | 176,810 | 13,130 | ||||||
Winmark Corp. | 24,200 | 10,105 | |||||||
85,202 | |||||||||
Financials—6.9% | |||||||||
* | BRP Group, Inc. | 29,134 | 700 | ||||||
* | Donnelley Financial Solutions, Inc. | 134,560 | 8,392 | ||||||
* | Euronet Worldwide, Inc. | 80,820 | 8,202 | ||||||
* | Flywire Corp. | 171,070 | 3,960 | ||||||
* | Goosehead Insurance, Inc. | 53,162 | 4,030 | ||||||
StepStone Group, Inc. | 183,380 | 5,837 | |||||||
Virtu Financial, Inc. | 418,850 | 8,486 | |||||||
Western Alliance Bancorp | 184,525 | 12,140 | |||||||
51,747 | |||||||||
Energy—5.1% | |||||||||
ChampionX Corp. | 292,910 | 8,556 | |||||||
* | Green Plains, Inc. | 279,332 | 7,045 | ||||||
New Fortress Energy, Inc. | 264,190 | 9,968 | |||||||
TechnipFMC PLC† | 308,090 | 6,205 | |||||||
Whitecap Resources, Inc. | 905,800 | 6,089 | |||||||
37,863 | |||||||||
Consumer Staples—3.9% | |||||||||
* | elf Beauty, Inc. | 93,940 | 13,560 | ||||||
* | Vita Coco Co., Inc. | 212,910 | 5,461 | ||||||
* | Vital Farms, Inc. | 648,580 | 10,176 | ||||||
29,197 | |||||||||
Materials—3.5% | |||||||||
Balchem Corp. | 65,230 | 9,703 | |||||||
Orion SA† | 272,067 | 7,545 | |||||||
Sylvamo Corp. | 187,890 | 9,227 | |||||||
26,475 | |||||||||
Communication Services—2.3% | |||||||||
* | Gogo, Inc. | 579,660 | 5,872 | ||||||
* | QuinStreet, Inc. | 461,925 | 5,922 | ||||||
* | ZipRecruiter, Inc. | 422,540 | 5,873 | ||||||
17,667 |
See accompanying Notes to Financial Statements.
26 | Annual Report | December 31, 2023 |
Small Cap Growth Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Shares or Principal Amount | Value | |||||||
Common Stocks—(continued) | |||||||||
Real Estate—2.0% | |||||||||
Colliers International Group, Inc. | 37,048 | $ | 4,687 | ||||||
FirstService Corp. | 62,147 | 10,074 | |||||||
14,761 | |||||||||
Total Common Stocks—96.1% (cost $609,202) | 718,924 | ||||||||
Exchange-Traded Fund | |||||||||
Exchange-Traded Fund—1.0% | |||||||||
iShares Russell 2000 Growth ETF | 29,870 | 7,534 | |||||||
Total Exchange-Traded Fund—1.0% (cost $6,767) | 7,534 | ||||||||
Repurchase Agreement | |||||||||
Fixed Income Clearing Corporation, 2.300% dated 12/29/23, due 01/02/24, repurchase price $23,475, collateralized by U.S. Treasury Inflation – Indexed Note, 0.125%, due 07/15/31 and U.S. Treasury Note, 3.875%, due 12/31/27, valued at $23,939 | $23,469 | 23,469 | |||||||
Total Repurchase Agreement—3.2% (cost $23,469) | 23,469 | ||||||||
Total Investments—100.3% (cost $639,438) | 749,927 | ||||||||
Liabilities, plus cash and other assets—(0.3)% | (2,016 | ) | |||||||
Net assets—100.0% | $ | 747,911 |
ADR = American Depository Receipt
* = Non-income producing security
** = Fair valued pursuant to the Fund’s Valuation Procedures. These holdings represent 0.00% of the Fund’s net assets at December 31, 2023.
# = Investment in securities not registered under the Securities Act of 1933 (excluding securities acquired pursuant to Rule 144A and Regulation S). The value of such restricted securities represents 0.00% of the Fund’s net assets at December 31, 2023.
† = U.S. listed foreign security
See accompanying Notes to Financial Statements.
December 31, 2023 | William Blair Funds | 27 |
28 | Annual Report | December 31, 2023 |
Small Cap Value Fund
Performance Highlights (Unaudited)
Average Annual Total Returns through 12/31/2023
1 Year | 3 Year | 5 Year | 10 Year | Since Inception(a) | ||||||||||||||||
Class N | 10.59 | % | — | % | — | % | — | % | 2.58 | % | ||||||||||
Class I | 10.86 | 8.46 | 10.60 | 7.74 | — | |||||||||||||||
Class R6 | 10.96 | — | — | — | 2.94 | |||||||||||||||
Russell 2000® Value Index | 14.65 | 7.94 | 10.00 | 6.76 | 2.12 |
(a) | Since inception is for the period from July 17, 2021 (Commencement of Operations) to December 31, 2023. |
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are average annual total returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272, or visit our Web site at www.williamblairfunds.com. Investing in smaller companies involves special risks, including higher volatility and lower liquidity. Smaller capitalization stocks are also more sensitive to purchase/sale transactions and changes in the issuer’s financial condition. From time to time, the investment adviser may waive fees or reimburse expenses for the Fund. Without these waivers/reimbursements, performance would be lower. Class N shares are not subject to a sales load. Class I shares are not subject to a sales load or distribution (Rule 12b-1) fees. Class R6 shares are not subject to a sales load, distribution (Rule 12b-1) fees, or sub-transfer agent fees.
The performance highlights and graph presented above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The Russell 2000® Value Index consists of small-capitalization companies with below average price-to-book ratios and forecasted growth rates.
This report identifies the Fund’s investments on December 31, 2023. These holdings are subject to change. Not all stocks in the Fund performed the same, nor is there any guarantee that these stocks will perform as well in the future. Market forecasts provided in this report may not necessarily come to pass.
Sector Diversification (Unaudited)
The sector diversification shown is based on the total long-term securities.
December 31, 2023 | William Blair Funds | 29 |
Small Cap Value Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks | |||||||||
Industrials—22.9% | |||||||||
ABM Industries, Inc. | 324,305 | $ | 14,539 | ||||||
Albany International Corp. | 151,178 | 14,849 | |||||||
Armstrong World Industries, Inc. | 175,276 | 17,233 | |||||||
Brady Corp. | 270,375 | 15,868 | |||||||
* | CBIZ, Inc. | 230,396 | 14,420 | ||||||
* | Conduent, Inc. | 2,526,544 | 9,222 | ||||||
CSG Systems International, Inc. | 242,480 | 12,902 | |||||||
Deluxe Corp. | 509,825 | 10,936 | |||||||
GrafTech International Ltd. | 1,784,138 | 3,907 | |||||||
Granite Construction, Inc. | 411,398 | 20,924 | |||||||
* | Great Lakes Dredge & Dock Corp. | 966,214 | 7,420 | ||||||
Hillenbrand, Inc. | 311,657 | 14,913 | |||||||
* | Hub Group, Inc. | 165,376 | 15,205 | ||||||
Korn Ferry | 188,035 | 11,160 | |||||||
Marten Transport Ltd. | 596,266 | 12,510 | |||||||
Maximus, Inc. | 173,198 | 14,524 | |||||||
MillerKnoll, Inc. | 340,611 | 9,087 | |||||||
* | OPENLANE, Inc. | 559,484 | 8,286 | ||||||
* | PGT Innovations, Inc. | 328,979 | 13,389 | ||||||
Rush Enterprises, Inc. | 99,657 | 5,013 | |||||||
* | SP Plus Corp. | 176,974 | 9,070 | ||||||
Terex Corp. | 206,817 | 11,884 | |||||||
* | Thermon Group Holdings, Inc. | 283,129 | 9,221 | ||||||
* | Titan Machinery, Inc. | 367,506 | 10,614 | ||||||
Werner Enterprises, Inc. | 293,910 | 12,453 | |||||||
299,549 | |||||||||
Financials—17.9% | |||||||||
Ameris Bancorp | 312,661 | 16,587 | |||||||
Atlantic Union Bankshares Corp. | 271,361 | 9,916 | |||||||
Banc of California, Inc. | 717,004 | 9,629 | |||||||
Brightsphere Investment Group, Inc. | 475,299 | 9,107 | |||||||
Compass Diversified Holdings | 680,663 | 15,281 | |||||||
Eastern Bankshares, Inc. | 992,118 | 14,088 | |||||||
Enterprise Financial Services Corp. | 276,567 | 12,349 | |||||||
First Bancorp | 267,962 | 9,917 | |||||||
First Merchants Corp. | 326,904 | 12,122 | |||||||
Hancock Whitney Corp. | 236,940 | 11,513 | |||||||
MGIC Investment Corp. | 726,050 | 14,005 | |||||||
Old National Bancorp | 824,090 | 13,919 | |||||||
Pacific Premier Bancorp, Inc. | 332,858 | 9,689 | |||||||
Pinnacle Financial Partners, Inc. | 173,577 | 15,139 | |||||||
* | PRA Group, Inc. | 419,739 | 10,997 | ||||||
Seacoast Banking Corp. of Florida | 373,039 | 10,617 | |||||||
Stellar Bancorp, Inc. | 390,759 | 10,879 | |||||||
* | Texas Capital Bancshares, Inc. | 250,152 | 16,167 | ||||||
WaFd, Inc. | 370,318 | 12,206 | |||||||
234,127 | |||||||||
Consumer Discretionary—13.7% | |||||||||
* | Adient PLC† | 296,234 | 10,771 | ||||||
Bloomin’ Brands, Inc. | 624,900 | 17,591 | |||||||
Carter’s, Inc. | 211,706 | 15,855 | |||||||
Cracker Barrel Old Country Store, Inc. | 121,469 | 9,363 | |||||||
Designer Brands, Inc. | 341,240 | 3,020 | |||||||
* | El Pollo Loco Holdings, Inc. | 559,889 | 4,938 |
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Consumer Discretionary—(continued) | |||||||||
La-Z-Boy, Inc. | 480,090 | $ | 17,725 | ||||||
Monro, Inc. | 321,479 | 9,432 | |||||||
Oxford Industries, Inc. | 124,094 | 12,409 | |||||||
Standard Motor Products, Inc. | 371,736 | 14,799 | |||||||
Steven Madden Ltd. | 356,384 | 14,968 | |||||||
* | Taylor Morrison Home Corp. | 309,314 | 16,502 | ||||||
* | Tri Pointe Homes, Inc. | 453,438 | 16,052 | ||||||
* | Universal Electronics, Inc. | 210,464 | 1,976 | ||||||
Winnebago Industries, Inc. | 196,477 | 14,319 | |||||||
179,720 | |||||||||
Information Technology—10.3% | |||||||||
ADTRAN Holdings, Inc. | 1,440,072 | 10,570 | |||||||
AudioCodes Ltd.† | 553,134 | 6,676 | |||||||
Belden, Inc. | 165,861 | 12,813 | |||||||
* | Cognyte Software Ltd.† | 1,091,823 | 7,020 | ||||||
* | Diodes, Inc. | 159,434 | 12,838 | ||||||
* | Knowles Corp. | 886,635 | 15,880 | ||||||
Kulicke & Soffa Industries, Inc. | 281,323 | 15,394 | |||||||
Methode Electronics, Inc. | 84,931 | 1,930 | |||||||
* | NetScout Systems, Inc. | 444,180 | 9,750 | ||||||
* | Perficient, Inc. | 217,968 | 14,347 | ||||||
Progress Software Corp. | 217,871 | 11,830 | |||||||
* | Verint Systems, Inc. | 557,180 | 15,061 | ||||||
134,109 | |||||||||
Real Estate—9.0% | |||||||||
CareTrust REIT, Inc. | 624,099 | 13,967 | |||||||
Elme Communities | 656,503 | 9,585 | |||||||
Empire State Realty Trust, Inc. | 1,481,412 | 14,355 | |||||||
Four Corners Property Trust, Inc. | 436,861 | 11,053 | |||||||
Kite Realty Group Trust | 772,018 | 17,648 | |||||||
Pebblebrook Hotel Trust | 861,647 | 13,769 | |||||||
STAG Industrial, Inc. | 372,458 | 14,623 | |||||||
Sunstone Hotel Investors, Inc. | 950,580 | 10,200 | |||||||
UMH Properties, Inc. | 793,298 | 12,153 | |||||||
117,353 | |||||||||
Materials—7.2% | |||||||||
Commercial Metals Co. | 269,971 | 13,509 | |||||||
* | Ecovyst, Inc. | 1,309,262 | 12,792 | ||||||
Greif, Inc. | 180,403 | 11,833 | |||||||
Minerals Technologies, Inc. | 218,012 | 15,546 | |||||||
Myers Industries, Inc. | 640,226 | 12,516 | |||||||
Orion SA† | 577,893 | 16,025 | |||||||
Ryerson Holding Corp. | 334,777 | 11,610 | |||||||
93,831 | |||||||||
Energy—6.2% | |||||||||
* | Dril-Quip, Inc. | 489,532 | 11,391 | ||||||
* | Expro Group Holdings NV† | 742,820 | 11,826 | ||||||
Matador Resources Co. | 218,576 | 12,428 | |||||||
PBF Energy, Inc. | 283,825 | 12,477 | |||||||
Permian Resources Corp. | 1,317,797 | 17,922 | |||||||
SM Energy Co. | 396,407 | 15,349 | |||||||
81,393 |
See accompanying Notes to Financial Statements.
30 | Annual Report | December 31, 2023 |
Small Cap Value Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Shares or Principal Amount | Value | |||||||
Common Stocks—(continued) | |||||||||
Consumer Staples—5.0% | |||||||||
Cal-Maine Foods, Inc. | 266,050 | $ | 15,269 | ||||||
* | Central Garden & Pet Co. | 344,784 | 15,184 | ||||||
Edgewell Personal Care Co. | 255,128 | 9,345 | |||||||
Spectrum Brands Holdings, Inc. | 154,903 | 12,357 | |||||||
* | TreeHouse Foods, Inc. | 308,318 | 12,780 | ||||||
64,935 | |||||||||
Health Care—4.4% | |||||||||
* | ANI Pharmaceuticals, Inc. | 193,870 | 10,690 | ||||||
* | Avanos Medical, Inc. | 475,317 | 10,661 | ||||||
* | Integer Holdings Corp. | 184,674 | 18,298 | ||||||
* | Lantheus Holdings, Inc. | 216,248 | 13,407 | ||||||
* | ModivCare, Inc. | 101,960 | 4,485 | ||||||
57,541 | |||||||||
Utilities—1.7% | |||||||||
Northwestern Energy Group, Inc. | 218,303 | 11,110 | |||||||
Spire, Inc. | 181,970 | 11,344 | |||||||
22,454 | |||||||||
Communication Services—0.8% | |||||||||
John Wiley & Sons, Inc. | 338,924 | 10,757 | |||||||
Total Common Stocks—99.1% (cost $1,191,292) | 1,295,769 | ||||||||
Repurchase Agreement | |||||||||
Fixed Income Clearing Corporation, 2.300% dated 12/29/23, due 01/02/24, repurchase price $9,689, collateralized by U.S. Treasury Note, 3.875%, due 12/31/27, valued at $9,881 | $9,687 | 9,687 | |||||||
Total Repurchase Agreement—0.7% (cost $9,687) | 9,687 | ||||||||
Total Investments—99.8% (cost $1,200,979) | 1,305,456 | ||||||||
Cash and other assets, less liabilities—0.2% | 2,590 | ||||||||
Net assets—100.0% | $ | 1,308,046 |
REIT = Real Estate Investment Trust
* = Non-income producing security
† = U.S. listed foreign security
See accompanying Notes to Financial Statements.
December 31, 2023 | William Blair Funds | 31 |
Global Markets Review and Outlook
Global equities advanced in the fourth quarter (the MSCI ACWI IMI returned +11.14% for the fourth quarter and +21.58% year-to-date as of December 31, 2023, in USD terms), on speculation that major central banks have sufficiently raised rates to stifle inflation. From a global sector perspective, leading was Information Technology (+17.39% for the fourth quarter and +49.74% year-to-date as of December 31, 2023, as measured by the MSCI ACWI IMI). Alternatively, Energy (-3.00% for the fourth quarter and +5.41% year-to-date as of December 31, 2023, as measured by the MSCI ACWI IMI) lagged during the period. Growth equities outperformed value-oriented equities (the MSCI ACWI IMI Growth returned +12.64% for the fourth quarter and +31.49% year-to-date as of December 31, 2023, while the MSCI ACWI IMI Value returned +9.53% for the fourth quarter and +12.20% year-to-date as of December 31, 2023).
U.S. equities gained during the period (+12.00% for the fourth quarter and +25.64% year-to-date as of December 31, 2023, as measured by the MSCI USA IMI) following a dovish pivot from the Federal Reserve at the December policy meeting. Inflationary pressures continued to ease, and consumer expenditures climbed, showing resilience despite pricing pressure. Importantly, all four major indexes posted gains during the fourth quarter, indicative of broadening market performance, with strength expanding beyond large cap technology that dominated performance for most of the year.
European equities advanced for the fourth quarter (+11.42% for the fourth quarter and +19.52% year-to-date as of December 31, 2023, as measured by the MSCI Europe IMI) similarly fueled on optimism for central bank pivots. Italy and Spain continued their strong performance seen throughout the year (+13.23% for the fourth quarter and +35.86% year-to-date as of December 31, 2023, as measured by MSCI Italy IMI and +12.17% for the fourth quarter and +30.38% year-to-date as of December 31, 2023, as measured by MSCI Spain IMI). Within Germany, PPI data showed signs of disinflation, coming in below expectations and 10-year Bund yield fell below 2%. U.K. equities advanced (+7.73% for the fourth quarter and +14.41% year-to-date as of December 31, 2023, as measured by the MSCI United Kingdom IMI) with the focus on U.K. inflation print which slowed across the board.
Emerging markets posted positive returns (+8.02% for the fourth quarter and +11.67% year-to-date as of December 31, 2023, as measured by the MSCI EM IMI) hindered by continued weakness within China. Chinese equities declined (-4.16% for the fourth quarter and -11.82% year-to-date as of December 31, 2023, as measured by the MSCI China IMI index) amid weaker economic growth and ongoing crisis in the property market. Conversely, Taiwan, Korea, and India were among the top performers within Asia ex-Japan. Latin America returns surged (+17.32% for the fourth quarter and +32.90% year-to-date as of December 31, 2023, as measured by the MSCI EM Latin America IMI), with notable strength from Argentina (+35.68% for the fourth quarter and +65.71% year-to-date as of December 31, 2023, as measured by MSCI Argentina), Brazil (+17.59% for the fourth quarter and +32.64% year-to-date as of December 31, 2023, as measured by MSCI Brazil IMI), and Mexico (+18.54% for the fourth quarter and +41.45% year-to-date as of December 31, 2023, as measured by MSCI Mexico IMI). EMEA lagged (+7.64% for the fourth quarter and +9.03% year-to-date as of December 31, 2023, as measured by the MSCI EM EMEA IMI), despite strong returns from Poland (+36.34% for the fourth quarter and +50.87% year-to-date as of December 31, 2023, as measured by MSCI Poland IMI).
Albeit far from smooth, global markets surpassed expectations in 2023. Growth equities rebounded during the year, led primarily by strength in Information Technology and Communication Services. While markets wrestled with interpretations of inflationary data and central banks’ tone on monetary policy, we believe 2024 is shaping up to be a “normal” expansionary year. Importantly, we believe 2024 may prove to be the very first post-COVID year, with healthy levels of economic growth and inflation, as the economic distortions from the pandemic have normalized. We expect a continuation of broad growth particularly from the U.S., a bit less in Europe, and potential for accelerated strength in Japan.
We believe that inflation post-pandemic was primarily driven by the supply side, following the massive shocks that permeated it in the aftermath of what was a very abrupt medically driven closure of global economies. This in turn led to massive distortions in the supply chains of many goods and increasingly services, resulting in the bouts of inflation that we have experienced: housing in the U.S., energy in Europe, and food prices in Japan, to highlight a few. These supply shocks tend to go away over time as suppliers, companies, and demand adjust. We have been experiencing that in the last several months, and we now believe the lofty levels of inflation are increasingly in the rearview mirror.
We expect developed markets to grow by 2%-plus on a sustainable basis with inflation of 2%-2.5%—a healthy outlook. And while that level of inflation is meaningfully higher than we experienced for the last decade, it should be very manageable and allow central banks to ease monetary policy accordingly. We expect real rates of 1%-1.5% to be sustained eventually.
32 | Annual Report | December 31, 2023 |
Global Markets Review and Outlook
With that as a backdrop and as reflected in an economic expansion, we expect accelerating corporate profit growth in most major markets. The U.S. has the highest expected growth of the large developed markets (about 12%), but expectations feel elevated compared to our economic outlook. Japan on the other hand could see further upside to growth expectations (9%) on top of an already strong growth year in 2023, in our view. We believe that Europe should be able to achieve expectations of healthy, albeit lower, profit growth of roughly 6%. Emerging market aggregate earnings growth was negative last year; however, we believe that emerging markets have the potential for the largest rebound in 2024.
Regional valuations are aligned with these growth expectations with the U.S. the highest, above its pre-COVID peak, at 19.3 times next twelve months P/E. This compares to 14.2 times for Japan and 12.7 times for Europe. Emerging markets lag at 11.9 times. Our expectations for realized profit growth versus consensus estimates, combined with these valuation differentials, suggest international markets could be set up for better performance than the U.S.
As we discussed last quarter, Japan continues to be an area where we see potential for acceleration of growth. Government initiatives have been undertaken to increase growth and improve corporate performance. For example, the Tokyo Stock Exchange has been leading reforms by incentivizing all companies trading below their book value to devise a plan to improve capital efficiency; and more recently, the new NISA, Nippon Individual Savings Account, will provide retail investors a tax-exempt investment program beginning in January 2024. These and other developments make us believe that the improvement in Japanese corporate performance can persist and is an area of focus for us.
Within China, the acceleration of economic growth following the abandonment of COVID restrictions failed to materialize compared to what was experienced in many other large economies. While economic growth remains at relatively low levels, we would be remiss to write off China in terms of its future growth potential. For example, automobile exports rose ninefold in just three years. Importantly, more than half of this growth was driven by electric vehicles. We believe that China should continue to close its technological gap in other key areas such as semiconductors, artificial intelligence, quantum computing, material sciences, and healthcare. Government policy and investability issues will remain key to market sentiment.
More broadly, on the back of potentially decreasing interest rates in the U.S. and the likelihood for the dollar to weaken rather than strengthen, we believe international and emerging markets equities are likely beneficiaries. To the extent that we expect growth differentials and interest rate differentials to moderate, the dominance of the dollar should subside, thus paving the way for better international equity performance.
December 31, 2023 | William Blair Funds | 33 |
34 | Annual Report | December 31, 2023 |
Global Leaders Fund
Performance Highlights (Unaudited)
Average Annual Total Returns through 12/31/2023
1 Year | 3 Year | 5 Year | 10 Year | |||||||||||||
Class N | 22.67 | % | 0.27 | % | 11.77 | % | 8.36 | % | ||||||||
Class I | 22.99 | 0.52 | 12.06 | 8.66 | ||||||||||||
Class R6 | 23.13 | 0.58 | 12.12 | 8.73 | ||||||||||||
MSCI ACW IMI (net) | 21.58 | 5.46 | 11.49 | 7.77 |
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are average annual total returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272, or visit our Web site at www.williamblairfunds.com. Investing in smaller and medium capitalization companies involves special risks, including higher volatility and lower liquidity. Smaller and medium capitalization stocks are also more sensitive to purchase/sale transactions and changes in the issuer’s financial condition. International investing involves special risk considerations, including currency fluctuations, lower liquidity, economic and political risk. From time to time, the investment adviser may waive fees or reimburse expenses for the Fund. Without these waivers/reimbursements, performance would be lower. Class N shares are not subject to a sales load. Class I shares are not subject to a sales load or distribution (Rule 12b-1) fees. Class R6 shares are not subject to a sales load, distribution (Rule 12b-1) fees, or sub-transfer agent fees.
The performance highlights and graph presented above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The Morgan Stanley Capital International (MSCI) All Country World (ACW) Investable Market Index (IMI) (net) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market of developed and emerging markets. This index approximates the minimum possible dividend reinvestment by deducting for the highest possible withholding tax rates of those markets.
This report identifies the Fund’s investments on December 31, 2023. These holdings are subject to change. Not all stocks in the Fund performed the same, nor is there any guarantee that these stocks will perform as well in the future. Market forecasts provided in this report may not necessarily come to pass.
Sector Diversification (Unaudited)
The sector diversification shown is based on the total long-term securities.
December 31, 2023 | William Blair Funds | 35 |
Global Leaders Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks | |||||||||
Western Hemisphere—52.0% | |||||||||
Canada—2.6% | |||||||||
Canadian Pacific Kansas City Ltd. (Ground transportation) | 20,654 | $ | 1,633 | ||||||
* | Lululemon Athletica, Inc. (Textiles, apparel & luxury goods) | 2,014 | 1,030 | ||||||
2,663 | |||||||||
United States—49.4% | |||||||||
* | Alphabet, Inc. (Interactive media & services) | 26,029 | 3,636 | ||||||
* | Amazon.com, Inc. (Broadline retail) | 18,954 | 2,880 | ||||||
Applied Materials, Inc. (Semiconductors & semiconductor equipment) | 4,760 | 771 | |||||||
* | Autodesk, Inc. (Software) | 5,992 | 1,459 | ||||||
Booz Allen Hamilton Holding Corp. (Professional services) | 11,251 | 1,439 | |||||||
Chevron Corp. (Oil, gas & consumable fuels) | 11,712 | 1,747 | |||||||
* | Copart, Inc. (Commercial services & supplies) | 30,815 | 1,510 | ||||||
Crown Holdings, Inc. (Containers & packaging) | 15,688 | 1,445 | |||||||
* | IDEXX Laboratories, Inc. (Health care equipment & supplies) | 2,445 | 1,357 | ||||||
Intercontinental Exchange, Inc. (Capital markets) | 11,442 | 1,470 | |||||||
* | Intuitive Surgical, Inc. (Health care equipment & supplies) | 3,838 | 1,295 | ||||||
Mastercard, Inc. (Financial services) | 7,980 | 3,404 | |||||||
* | Meta Platforms, Inc. (Interactive media & services) | 7,287 | 2,579 | ||||||
Microsoft Corp. (Software) | 16,063 | 6,040 | |||||||
* | Monster Beverage Corp. (Beverages) | 17,155 | 988 | ||||||
Murphy USA, Inc. (Specialty retail) | 4,669 | 1,665 | |||||||
* | O’Reilly Automotive, Inc. (Specialty retail) | 518 | 492 | ||||||
Old Dominion Freight Line, Inc. (Ground transportation) | 3,730 | 1,512 | |||||||
Prologis, Inc. (Industrial REITs) | 4,907 | 654 | |||||||
Roper Technologies, Inc. (Software) | 2,075 | 1,131 | |||||||
* | Salesforce, Inc. (Software) | 6,139 | 1,615 | ||||||
* | Synopsys, Inc. (Software) | 3,700 | 1,905 | ||||||
Thermo Fisher Scientific, Inc. (Life sciences tools & services) | 1,450 | 770 | |||||||
* | Ulta Beauty, Inc. (Specialty retail) | 4,159 | 2,038 | ||||||
UnitedHealth Group, Inc. (Health care providers & services) | 4,594 | 2,419 | |||||||
Vulcan Materials Co. (Construction materials) | 4,679 | 1,062 | |||||||
Watsco, Inc. (Trading companies & distributors) | 2,326 | 997 | |||||||
Zoetis, Inc. (Pharmaceuticals) | 6,827 | 1,347 | |||||||
49,627 |
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Europe—29.0% | |||||||||
Denmark—3.9% | |||||||||
DSV AS (Air freight & logistics) | 8,509 | $ | 1,494 | ||||||
Novo Nordisk AS (Pharmaceuticals) | 23,730 | 2,453 | |||||||
3,947 | |||||||||
France—8.6% | |||||||||
Airbus SE (Aerospace & defense) | 16,850 | 2,600 | |||||||
Dassault Systemes SE (Software) | 36,556 | 1,785 | |||||||
Hermes International SCA (Textiles, apparel & luxury goods) | 775 | 1,642 | |||||||
LVMH Moet Hennessy Louis Vuitton SE (Textiles, apparel & luxury goods) | 1,540 | 1,247 | |||||||
TotalEnergies SE (Oil, gas & consumable fuels) | 7,650 | 520 | |||||||
Vinci SA (Construction & engineering) | 6,953 | 873 | |||||||
8,667 | |||||||||
Germany—2.8% | |||||||||
Infineon Technologies AG (Semiconductors & semiconductor equipment) | 34,294 | 1,431 | |||||||
MTU Aero Engines AG (Aerospace & defense) | 6,274 | 1,352 | |||||||
2,783 | |||||||||
Ireland—5.1% | |||||||||
* | ICON PLC (Life sciences tools & services)† | 2,698 | 764 | ||||||
Linde PLC (Chemicals)† | 3,460 | 1,421 | |||||||
* | Ryanair Holdings PLC—ADR (Passenger airlines) | 9,241 | 1,232 | ||||||
Trane Technologies PLC (Building products)† | 6,991 | 1,705 | |||||||
5,122 | |||||||||
Italy—0.9% | |||||||||
Ferrari NV (Automobiles)† | 2,571 | 870 | |||||||
Netherlands—1.4% | |||||||||
ASML Holding NV (Semiconductors & semiconductor equipment) | 1,861 | 1,401 | |||||||
Sweden—4.3% | |||||||||
Atlas Copco AB (Machinery) | 124,179 | 2,137 | |||||||
Evolution AB (Hotels, restaurants & leisure) | 9,944 | 1,185 | |||||||
Indutrade AB (Machinery) | 38,213 | 992 | |||||||
4,314 | |||||||||
Switzerland—2.0% | |||||||||
Partners Group Holding AG (Capital markets) | 780 | 1,125 | |||||||
Zurich Insurance Group AG (Insurance) | 1,643 | 859 | |||||||
1,984 |
See accompanying Notes to Financial Statements.
36 | Annual Report | December 31, 2023 |
Global Leaders Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
United Kingdom—8.1% | |||||||||
Ashtead Group PLC (Trading companies & distributors) | 19,401 | $ | 1,351 | ||||||
Compass Group PLC (Hotels, restaurants & leisure) | 64,681 | 1,769 | |||||||
Diageo PLC (Beverages) | 26,322 | 958 | |||||||
Experian PLC (Professional services) | 19,433 | 793 | |||||||
Halma PLC (Electronic equipment, instruments & components) | 40,898 | 1,191 | |||||||
Rentokil Initial PLC (Commercial services & supplies) | 194,584 | 1,093 | |||||||
Spirax-Sarco Engineering PLC (Machinery) | 7,632 | 1,022 | |||||||
8,177 | |||||||||
Emerging Asia—6.5% | |||||||||
India—2.6% | |||||||||
HDFC Bank Ltd.—ADR (Banks) | 20,875 | 1,401 | |||||||
Reliance Industries Ltd. (Oil, gas & consumable fuels) | 39,669 | 1,233 | |||||||
2,634 | |||||||||
Taiwan—3.9% | |||||||||
MediaTek, Inc. (Semiconductors & semiconductor equipment) | 47,000 | 1,554 | |||||||
Taiwan Semiconductor Manufacturing Co. Ltd.— ADR (Semiconductors & semiconductor equipment) | 22,592 | 2,350 | |||||||
3,904 | |||||||||
Japan—1.5% | |||||||||
Keyence Corp. (Electronic equipment, instruments & components) | 3,400 | 1,498 | |||||||
Asia—1.1% | |||||||||
Hong Kong—1.1% | |||||||||
AIA Group Ltd. (Insurance) | 126,000 | 1,098 | |||||||
Emerging Latin America—1.0% | |||||||||
Brazil—1.0% | |||||||||
* | MercadoLibre, Inc. (Broadline retail) | 613 | 963 | ||||||
Total Common Stocks—99.2% (cost $62,726) | 99,652 |
Issuer | Principal Amount | Value | |||||||
Repurchase Agreement | |||||||||
Fixed Income Clearing Corporation, 2.300% dated 12/29/23, due 01/02/24, repurchase price $526, collateralized by U.S. Treasury Bond, 4.375%, due 05/15/41, valued at $536 | $526 | $ | 526 | ||||||
Total Repurchase Agreement—0.5% (cost $526) | 526 | ||||||||
Total Investments—99.7% (cost $63,252) | 100,178 | ||||||||
Cash and other assets, less liabilities—0.3% | 277 | ||||||||
Net assets—100.0% | $ | 100,455 |
ADR = American Depository Receipt
REIT = Real Estate Investment Trust
* = Non-income producing security
† = U.S. listed foreign security
At December 31, 2023, the Fund’s Portfolio of Investments includes the following industry categories (as a percentage of long-term investments):
Information Technology | 24.3 | % | ||
Industrials | 23.8 | % | ||
Consumer Discretionary | 15.8 | % | ||
Health Care | 10.4 | % | ||
Financials | 9.4 | % | ||
Communication Services | 6.2 | % | ||
Materials | 3.9 | % | ||
Energy | 3.5 | % | ||
Consumer Staples | 2.0 | % | ||
Real Estate | 0.7 | % | ||
Total | 100.0 | % |
At December 31, 2023, the Fund’s Portfolio of Investments includes the following currency categories (as a percentage of long-term investments):
U.S. Dollar | 63.2 | % | ||
Euro | 12.9 | % | ||
British Pound Sterling | 8.2 | % | ||
Swedish Krona | 4.3 | % | ||
Danish Krone | 4.0 | % | ||
Swiss Franc | 2.0 | % | ||
New Taiwan Dollar | 1.6 | % | ||
Japanese Yen | 1.5 | % | ||
Indian Rupee | 1.2 | % | ||
Hong Kong Dollar | 1.1 | % | ||
Total | 100.0 | % |
See accompanying Notes to Financial Statements.
December 31, 2023 | William Blair Funds | 37 |
38 | Annual Report | December 31, 2023 |
International Leaders Fund
Positive selection in Materials came from Shin-Etsu Chemical. Shin-Etsu has two core business: polyvinyl chloride (“PVC”) production and semiconductor wafer manufacturing. PVC is a widely used material, but the bulk of demand is for housing/construction-related products such as white PVC pipes seen in home improvement stores. Semiconductor wafers are the base ingredient for computers chips. In our view, Shin-Etsu has a clear scale advantage across its business units, giving it a superior cost advantage relative to its competitors. Manufacturing expertise is its other competitive advantage, with both skill and efficiency leading to overall better products and better corporate results. The stock had a strong fourth quarter as margins have been holding up better than expected and on the positive outlook for the semiconductor industry going forward. Management noted an inflection point in wafer demand, consistent with other segments in the semiconductor value chain.
Novo Nordisk was the primary driver of positive selection within Health Care. The stock rallied this year as the total addressable market for its glucagon-like peptide-1 (“GLP-1”) drugs continued to rise after trials showed positive results in treating diabetes, obesity, and cardiovascular disease. We believe the company will remain a top player in the GLP-1 space well into the 2030s, providing a long runway for growth. We trimmed the position in the fourth quarter on stock price strength.
From a regional perspective, allocation was positive due to an overweight in Europe and underweight in China. Selection effect was negative mostly within China. Following the abandonment of strict COVID policies in China late last year, our belief was that China would see a resurgence in domestic consumer spending, similar to what other countries experienced when they removed COVID restrictions. As such, our exposure within China was exposed to domestic consumption in companies such as Alibaba, Kweichow Moutai, and China Tourism Group Duty Free. However, this consumption story did not unfold as anticipated, and selection effect was negatively impacted.
Please refer to the Global Markets Review and Outlook relating to the Fund beginning on page 32.
December 31, 2023 | William Blair Funds | 39 |
International Leaders Fund
Performance Highlights (Unaudited)
Average Annual Total Return 12/31/2023
1 Year | 3 Year | 5 Year | 10 Year | |||||||||||||
Class N | 12.77 | % | (4.03 | )% | 8.00 | % | 5.64 | % | ||||||||
Class I | 13.09 | (3.80 | ) | 8.26 | 5.90 | |||||||||||
Class R6 | 13.20 | (3.74 | ) | 8.33 | 5.98 | |||||||||||
MSCI ACW ex-U.S. IMI (net) | 15.62 | 1.53 | 7.18 | 3.97 |
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are average annual total returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272, or visit our Web site at www.williamblairfunds.com. Investing in smaller and medium capitalization companies involves special risks, including higher volatility and lower liquidity. Smaller and medium capitalization stocks are also more sensitive to purchase/sale transactions and changes in the issuer’s financial condition. International investing involves special risk considerations, including currency fluctuations, lower liquidity, economic and political risk. From time to time the investment adviser may waive fees or reimburse expenses for the Fund. Without these waivers/reimbursements, performance would be lower. Class N shares are not subject to a sales load. Class I shares are not subject to a sales load or distribution (Rule 12b-1) fees. Class R6 shares are not subject to a sales load, distribution (Rule 12b-1) fees, or sub-transfer agent fees.
The performance highlights presented above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The Morgan Stanley Capital International (MSCI) All Country World (ACW) ex-U.S. Investable Market Index (IMI) (net) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the United States. This index approximates the minimum possible dividend reinvestment by deducting for the highest possible withholding tax rates of those markets.
This report identifies the Fund’s investments on December 31, 2023. 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.
40 | Annual Report | December 31, 2023 |
International Leaders Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks | |||||||||
Europe—46.3% | |||||||||
Denmark—4.2% | |||||||||
DSV AS (Air freight & logistics) | 83,281 | $ | 14,621 | ||||||
Novo Nordisk AS (Pharmaceuticals) | 300,047 | 31,019 | |||||||
45,640 | |||||||||
France—15.5% | |||||||||
Airbus SE (Aerospace & defense) | 133,743 | 20,638 | |||||||
Capgemini SE (IT services) | 67,121 | 13,986 | |||||||
Dassault Systemes SE (Software) | 389,964 | 19,043 | |||||||
L’Oreal SA (Personal care products) | 44,364 | 22,071 | |||||||
LVMH Moet Hennessy Louis Vuitton SE (Textiles, apparel & luxury goods) | 19,916 | 16,129 | |||||||
Safran SA (Aerospace & defense) | 102,374 | 18,021 | |||||||
Schneider Electric SE (Electrical equipment) | 90,552 | 18,172 | |||||||
Thales SA (Aerospace & defense) | 64,367 | 9,518 | |||||||
TotalEnergies SE (Oil, gas & consumable fuels) | 189,158 | 12,863 | |||||||
Vinci SA (Construction & engineering) | 144,580 | 18,148 | |||||||
168,589 | |||||||||
Germany—1.8% | |||||||||
Infineon Technologies AG (Semiconductors & semiconductor equipment) | 455,911 | 19,025 | |||||||
Ireland—6.5% | |||||||||
CRH PLC (Construction materials)† | 194,811 | 13,473 | |||||||
* | ICON PLC (Life sciences tools & services)† | 83,333 | 23,589 | ||||||
Kingspan Group PLC (Building products) | 159,170 | 13,776 | |||||||
Linde PLC (Chemicals)† | 47,526 | 19,520 | |||||||
70,358 | |||||||||
Italy—2.3% | |||||||||
Ferrari NV (Automobiles)† | 41,135 | 13,921 | |||||||
Moncler SpA (Textiles, apparel & luxury goods) | 176,613 | 10,860 | |||||||
24,781 | |||||||||
Netherlands—4.4% | |||||||||
ASML Holding NV (Semiconductors & semiconductor equipment) | 44,874 | 33,770 | |||||||
BE Semiconductor Industries NV (Semiconductors & semiconductor equipment) | 91,353 | 13,761 | |||||||
47,531 | |||||||||
Spain—4.1% | |||||||||
Amadeus IT Group SA (Hotels, restaurants & leisure) | 300,113 | 21,495 | |||||||
Industria de Diseno Textil SA (Specialty retail) | 527,048 | 22,942 | |||||||
44,437 | |||||||||
Sweden—3.6% | |||||||||
Atlas Copco AB (Machinery) | 1,376,517 | 23,686 | |||||||
Evolution AB (Hotels, restaurants & leisure) | 127,471 | 15,194 | |||||||
38,880 |
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Europe—(continued) | |||||||||
Switzerland—3.9% | |||||||||
Partners Group Holding AG (Capital markets) | 8,815 | $ | 12,714 | ||||||
Straumann Holding AG (Health care equipment & supplies) | 81,890 | 13,203 | |||||||
Zurich Insurance Group AG (Insurance) | 31,473 | 16,450 | |||||||
42,367 | |||||||||
United Kingdom—13.4% | |||||||||
Ashtead Group PLC (Trading companies & distributors) | 238,558 | 16,609 | |||||||
AstraZeneca PLC (Pharmaceuticals) | 177,174 | 23,939 | |||||||
BAE Systems PLC (Aerospace & defense) | 273,150 | 3,866 | |||||||
Compass Group PLC (Hotels, restaurants & leisure) | 824,099 | 22,542 | |||||||
Experian PLC (Professional services) | 435,113 | 17,759 | |||||||
Haleon PLC (Personal care products) | 1,301,687 | 5,337 | |||||||
Halma PLC (Electronic equipment, instruments & components) | 378,873 | 11,030 | |||||||
London Stock Exchange Group PLC (Capital markets) | 205,008 | 24,234 | |||||||
Rentokil Initial PLC (Commercial services & supplies) | 1,651,404 | 9,279 | |||||||
Spirax-Sarco Engineering PLC (Machinery) | 75,961 | 10,171 | |||||||
144,766 | |||||||||
Emerging Asia—13.1% | |||||||||
China—2.3% | |||||||||
Kweichow Moutai Co. Ltd. (Beverages) | 61,271 | 14,841 | |||||||
* | PDD Holdings, Inc.—ADR (Broadline retail) | 69,482 | 10,166 | ||||||
25,007 | |||||||||
India—5.8% | |||||||||
HDFC Bank Ltd. (Banks) | 1,050,885 | 21,578 | |||||||
Infosys Ltd. (IT services) | 737,827 | 13,678 | |||||||
Reliance Industries Ltd. (Oil, gas & consumable fuels) | 886,120 | 27,548 | |||||||
62,804 | |||||||||
Taiwan—5.0% | |||||||||
MediaTek, Inc. (Semiconductors & semiconductor equipment) | 542,000 | 17,925 | |||||||
Taiwan Semiconductor Manufacturing Co. Ltd. (Semiconductors & semiconductor equipment) | 1,850,000 | 35,746 | |||||||
53,671 | |||||||||
Japan—12.1% | |||||||||
Daiichi Sankyo Co. Ltd. (Pharmaceuticals) | 448,400 | 12,314 | |||||||
Hoya Corp. (Health care equipment & supplies) | 204,100 | 25,513 | |||||||
ITOCHU Corp. (Trading companies & distributors) | 132,500 | 5,419 | |||||||
Keyence Corp. (Electronic equipment, instruments & components) | 34,500 | 15,200 |
See accompanying Notes to Financial Statements.
December 31, 2023 | William Blair Funds | 41 |
International Leaders Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Japan—(continued) | |||||||||
Lasertec Corp. (Semiconductors & semiconductor equipment) | 43,200 | $ | 11,388 | ||||||
Mitsui & Co. Ltd. (Trading companies & distributors) | 134,300 | 5,046 | |||||||
Shin-Etsu Chemical Co. Ltd. (Chemicals) | 669,500 | 28,095 | |||||||
SMC Corp. (Machinery) | 9,700 | 5,212 | |||||||
Tokyo Electron Ltd. (Semiconductors & semiconductor equipment) | 128,300 | 22,980 | |||||||
131,167 | |||||||||
Canada—9.5% | |||||||||
Canadian Pacific Kansas City Ltd. (Ground transportation) | 262,121 | 20,723 | |||||||
Constellation Software, Inc. (Software) | 4,584 | 11,365 | |||||||
Dollarama, Inc. (Broadline retail) | 305,789 | 22,037 | |||||||
Intact Financial Corp. (Insurance) | 91,362 | 14,056 | |||||||
* | Lululemon Athletica, Inc. (Textiles, apparel & luxury goods) | 42,461 | 21,710 | ||||||
Toronto-Dominion Bank (Banks) | 201,753 | 13,037 | |||||||
102,928 | |||||||||
Emerging Latin America—2.4% | |||||||||
Brazil—2.4% | |||||||||
B3 SA - Brasil Bolsa Balcao (Capital markets) | 2,816,200 | 8,435 | |||||||
* | MercadoLibre, Inc. (Broadline retail) | 11,538 | 18,133 | ||||||
26,568 | |||||||||
Asia—1.1% | |||||||||
Hong Kong—1.1% | |||||||||
AIA Group Ltd. (Insurance) | 1,417,600 | 12,354 | |||||||
Total Common Stocks—97.9% (cost $809,515) | 1,060,873 |
Issuer | Principal Amount | Value | |||||||
Repurchase Agreement | |||||||||
Fixed Income Clearing Corporation, 2.300% dated 12/29/23, due 01/02/24, repurchase price $24,321, collateralized by U.S. Treasury Note, 3.875%, due 12/31/2027 and U.S. Treasury Bond, 4.375%, due 05/15/2041, valued at $24,801 | $24,314 | $ | 24,314 | ||||||
Total Repurchase Agreement—2.2% (cost $24,314) | 24,314 | ||||||||
Total Investments—100.1% (cost $833,829) | 1,085,187 | ||||||||
Liabilities, plus cash and other assets—(0.1)% | (1,251 | ) | |||||||
Net assets—100.0% | $ | 1,083,936 |
ADR = American Depository Receipt
† = U.S. listed foreign security
* = Non-income producing security
At December 31, 2023, the Fund’s Portfolio of Investments includes the following industry categories (as a percentage of long-term investments):
Information Technology | 22.5 | % | ||
Industrials | 21.7 | % | ||
Consumer Discretionary | 18.4 | % | ||
Health Care | 12.2 | % | ||
Financials | 11.6 | % | ||
Materials | 5.8 | % | ||
Consumer Staples | 4.0 | % | ||
Energy | 3.8 | % | ||
Total | 100.0 | % |
At December 31, 2023, the Fund’s Portfolio of Investments includes the following currency categories (as a percentage of long-term investments):
Euro | 28.7 | % | ||
British Pound Sterling | 13.6 | % | ||
U.S. Dollar | 13.3 | % | ||
Japanese Yen | 12.4 | % | ||
Indian Rupee | 5.9 | % | ||
Canadian Dollar | 5.7 | % | ||
New Taiwan Dollar | 5.0 | % | ||
Danish Krone | 4.3 | % | ||
Swiss Franc | 4.0 | % | ||
Swedish Krona | 3.7 | % | ||
Chinese Yuan Renminbi | 1.4 | % | ||
Hong Kong Dollar | 1.2 | % | ||
All Other Currencies | 0.8 | % | ||
Total | 100.0 | % |
See accompanying Notes to Financial Statements.
42 | Annual Report | December 31, 2023 |
December 31, 2023 | William Blair Funds | 43 |
International Growth Fund
differentiated grassroots marketing approach, and highly productive small-store format. The stock benefitted from results that beat expectations as well as stronger-than-anticipated economic growth in the U.S. The position was trimmed during the fourth quarter after the recent move in the stock price and an increasing valuation.
MercadoLibre is the leading e-commerce platform in Latin America that has a best-in-class ecosystem of services such as logistics and payments, allowing the company to exploit attractive growth opportunities of the large and underpenetrated total addressable market. Latin America was one of the best performing regions in 2023 as many countries began to ease interest rates amid decreasing inflation rates. Results throughout the year were better than expected with revenue growth accelerating and margins expanding.
Shin-Etsu Chemical helped drive positive selection in Materials. Shin-Etsu has two core businesses: polyvinyl chloride (“PVC”) production and semiconductor wafer manufacturing. PVC is a widely used material, but the bulk of demand is for housing/construction-related products such as white PVC pipes seen in home improvement stores. Semiconductor wafers are the base ingredient for computers chips. In our view, Shin-Etsu has a clear scale advantage across its business units, giving it a superior cost advantage relative to its competitors. Manufacturing expertise is its other competitive advantage, with both skill and efficiency leading to overall better products and better corporate results. The stock had a strong fourth quarter as margins have been holding up better-than-expected and on the positive outlook for the semiconductor industry going forward. Management noted an inflection point in wafer demand, consistent with other segments in the semiconductor value chain.
Please refer to the Global Markets Review and Outlook relating to the Fund beginning on page 32.
44 | Annual Report | December 31, 2023 |
International Growth Fund
Performance Highlights (Unaudited)
Average Annual Total Returns through 12/31/2023 | ||||||||||||||||||||
1 Year | 3 Year | 5 Year | 10 Year | Since Inception(a) | ||||||||||||||||
Class N | 15.12 | % | (3.65 | )% | 8.93 | % | 4.29 | % | — | % | ||||||||||
Class I | 15.38 | (3.40 | ) | 9.23 | 4.60 | — | ||||||||||||||
Class R6 | 15.47 | (3.34 | ) | — | — | 6.36 | ||||||||||||||
MSCI ACW ex-U.S. IMI (net) | 15.62 | 1.53 | 7.18 | 3.97 | 4.86 |
(a) | Since inception is for the period from May 2, 2019 (Commencement of Operations) to December 31, 2023. |
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are average annual total returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272, or visit our Web site at www.williamblairfunds.com. Investing in smaller and medium capitalization companies involves special risks, including higher volatility and lower liquidity. Smaller and medium capitalization stocks are also more sensitive to purchase/sale transactions and changes in the issuer’s financial condition. International investing involves special risk considerations, including currency fluctuations, lower liquidity, economic and political risk. From time to time, the investment adviser may waive fees or reimburse expenses for the Fund. Without these waivers/reimbursements, performance would be lower. Class N shares are not subject to a sales load. Class I shares are not subject to a sales load or distribution (Rule 12b-1) fees. Class R6 shares are not subject to a sales load, distribution (Rule 12b-1) fees, or sub-transfer agent fees.
The performance highlights and graph presented above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The Morgan Stanley Capital International (MSCI) All Country World (ACW) ex-U.S. Investable Market Index (IMI) (net) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the United States. This index approximates the minimum possible dividend reinvestment by deducting for the highest possible withholding tax rates of those markets.
This report identifies the Fund’s investments on December 31, 2023. These holdings are subject to change. Not all stocks in the Fund performed the same, nor is there any guarantee that these stocks will perform as well in the future. Market forecasts provided in this report may not necessarily come to pass.
Sector Diversification (Unaudited)
The sector diversification shown is based on the total long-term securities.
December 31, 2023 | William Blair Funds | 45 |
International Growth Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks | |||||||||
Europe, Mid-East—38.3% | |||||||||
Belgium—0.2% | |||||||||
Warehouses De Pauw CVA (Industrial REITs) | 74,281 | $ | 2,337 | ||||||
Denmark—2.9% | |||||||||
DSV AS (Air freight & logistics) | 75,581 | 13,269 | |||||||
Novo Nordisk AS (Pharmaceuticals) | 273,723 | 28,298 | |||||||
41,567 | |||||||||
Finland—0.3% | |||||||||
Metso OYJ (Machinery) | 229,193 | 2,320 | |||||||
Valmet OYJ (Machinery) | 73,288 | 2,113 | |||||||
4,433 | |||||||||
France—11.4% | |||||||||
Airbus SE (Aerospace & defense) | 130,491 | 20,136 | |||||||
Capgemini SE (IT services) | 44,527 | 9,278 | |||||||
Dassault Systemes SE (Software) | 406,764 | 19,864 | |||||||
Hermes International SCA (Textiles, apparel & luxury goods) | 5,513 | 11,678 | |||||||
L’Oreal SA (Personal care products) | 27,214 | 13,539 | |||||||
LVMH Moet Hennessy Louis Vuitton SE (Textiles, apparel & luxury goods) | 15,852 | 12,838 | |||||||
Publicis Groupe SA (Media) | 94,607 | 8,773 | |||||||
Safran SA (Aerospace & defense) | 97,668 | 17,193 | |||||||
SEB SA (Household durables) | 18,503 | 2,308 | |||||||
* | SES-imagotag SA (Electronic equipment, instruments & components) | 16,413 | 2,460 | ||||||
Thales SA (Aerospace & defense) | 99,755 | 14,751 | |||||||
TotalEnergies SE (Oil, gas & consumable fuels) | 244,504 | 16,627 | |||||||
Vinci SA (Construction & engineering) | 110,379 | 13,855 | |||||||
163,300 | |||||||||
Germany—3.0% | |||||||||
CTS Eventim AG & Co. KGaA (Entertainment) | 84,956 | 5,871 | |||||||
Hannover Rueck SE (Insurance) | 41,826 | 9,987 | |||||||
Infineon Technologies AG (Semiconductors & semiconductor equipment) | 246,817 | 10,299 | |||||||
MTU Aero Engines AG (Aerospace & defense) | 52,411 | 11,297 | |||||||
Nemetschek SE (Software) | 35,627 | 3,087 | |||||||
Siltronic AG (Semiconductors & semiconductor equipment) | 21,686 | 2,118 | |||||||
42,659 | |||||||||
Ireland—4.7% | |||||||||
CRH PLC (Construction materials)† | 109,010 | 7,539 | |||||||
* | ICON PLC (Life sciences tools & services)† | 48,662 | 13,775 | ||||||
Kingspan Group PLC (Building products) | 185,029 | 16,014 | |||||||
Linde PLC (Chemicals)† | 40,166 | 16,497 | |||||||
* | Ryanair Holdings PLC—ADR (Passenger airlines) | 96,512 | 12,871 | ||||||
66,696 |
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Europe, Mid-East—(continued) | |||||||||
Israel—0.3% | |||||||||
* | Nice Ltd.—ADR (Software) | 24,931 | $ | 4,974 | |||||
Italy—1.7% | |||||||||
Azimut Holding SpA (Capital markets) | 82,531 | 2,154 | |||||||
Brembo SpA (Automobile components) | 128,528 | 1,575 | |||||||
Brunello Cucinelli SpA (Textiles, apparel & luxury goods) | 53,468 | 5,230 | |||||||
Ferrari NV (Automobiles)† | 26,222 | 8,874 | |||||||
Moncler SpA (Textiles, apparel & luxury goods) | 76,325 | 4,693 | |||||||
Stevanato Group SpA (Life sciences tools & services)† | 62,566 | 1,707 | |||||||
24,233 | |||||||||
Netherlands—3.1% | |||||||||
ASML Holding NV (Semiconductors & semiconductor equipment) | 36,914 | 27,780 | |||||||
BE Semiconductor Industries NV (Semiconductors & semiconductor equipment) | 53,115 | 8,001 | |||||||
IMCD NV (Trading companies & distributors) | 35,752 | 6,218 | |||||||
JDE Peet’s NV (Food products) | 84,573 | 2,275 | |||||||
44,274 | |||||||||
Norway—0.4% | |||||||||
* | AutoStore Holdings Ltd. (Machinery) | 1,378,971 | 2,712 | ||||||
Gjensidige Forsikring ASA (Insurance) | 132,409 | 2,443 | |||||||
5,155 | |||||||||
Spain—1.5% | |||||||||
Amadeus IT Group SA (Hotels, restaurants & leisure) | 155,112 | 11,110 | |||||||
Industria de Diseno Textil SA (Specialty retail) | 251,296 | 10,938 | |||||||
22,048 | |||||||||
Sweden—4.2% | |||||||||
Atlas Copco AB (Machinery) | 812,737 | 13,985 | |||||||
Beijer Ref AB (Trading companies & distributors) | 362,785 | 4,852 | |||||||
Evolution AB (Hotels, restaurants & leisure) | 90,735 | 10,815 | |||||||
Fortnox AB (Software) | 402,438 | 2,405 | |||||||
Hemnet Group AB (Interactive media & services) | 125,219 | 2,997 | |||||||
Hexagon AB (Electronic equipment, instruments & components) | 738,094 | 8,851 | |||||||
Indutrade AB (Machinery) | 213,592 | 5,544 | |||||||
Lifco AB (Industrial conglomerates) | 209,408 | 5,133 | |||||||
Nibe Industrier AB (Building products) | 477,052 | 3,349 | |||||||
Sweco AB (Construction & engineering) | 158,888 | 2,128 | |||||||
60,059 |
See accompanying Notes to Financial Statements.
46 | Annual Report | December 31, 2023 |
International Growth Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Europe, Mid-East—(continued) | |||||||||
Switzerland—4.6% | |||||||||
Belimo Holding AG (Building products) | 6,747 | $ | 3,721 | ||||||
Galenica AG (Health care providers & services) | 44,717 | 3,868 | |||||||
Partners Group Holding AG (Capital markets) | 4,471 | 6,448 | |||||||
Siegfried Holding AG (Life sciences tools & services) | 3,641 | 3,721 | |||||||
SIG Group AG (Containers & packaging) | 247,898 | 5,703 | |||||||
Sika AG (Chemicals) | 36,317 | 11,818 | |||||||
Straumann Holding AG (Health care equipment & supplies) | 39,060 | 6,298 | |||||||
Tecan Group AG (Life sciences tools & services) | 12,114 | 4,946 | |||||||
VAT Group AG (Machinery) | 16,849 | 8,444 | |||||||
Zurich Insurance Group AG (Insurance) | 22,292 | 11,652 | |||||||
66,619 | |||||||||
Japan—15.9% | |||||||||
Ajinomoto Co., Inc. (Food products) | 166,000 | 6,405 | |||||||
BayCurrent Consulting, Inc. (Professional services) | 80,300 | 2,820 | |||||||
Chugai Pharmaceutical Co. Ltd. (Pharmaceuticals) | 302,300 | 11,453 | |||||||
Daiichi Sankyo Co. Ltd. (Pharmaceuticals) | 371,300 | 10,196 | |||||||
Daikin Industries Ltd. (Building products) | 38,800 | 6,325 | |||||||
Disco Corp. (Semiconductors & semiconductor equipment) | 31,400 | 7,790 | |||||||
Harmonic Drive Systems, Inc. (Machinery) | 99,200 | 2,927 | |||||||
Hoya Corp. (Health care equipment & supplies) | 120,900 | 15,112 | |||||||
Internet Initiative Japan, Inc. (Diversified telecommunication services) | 81,300 | 1,663 | |||||||
ITOCHU Corp. (Trading companies & distributors) | 172,400 | 7,051 | |||||||
Japan Elevator Service Holdings Co. Ltd. (Commercial services & supplies) | 133,000 | 2,205 | |||||||
Japan Exchange Group, Inc. (Capital markets) | 404,500 | 8,558 | |||||||
Keyence Corp. (Electronic equipment, instruments & components) | 45,800 | 20,178 | |||||||
Lasertec Corp. (Semiconductors & semiconductor equipment) | 35,100 | 9,253 | |||||||
MatsukiyoCocokara & Co. (Consumer staples distribution & retail) | 231,300 | 4,096 | |||||||
Mitsui & Co. Ltd. (Trading companies & distributors) | 173,700 | 6,527 | |||||||
MonotaRO Co. Ltd. (Trading companies & distributors) | 370,200 | 4,042 | |||||||
Nomura Research Institute Ltd. (IT services) | 61,600 | 1,792 |
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Japan—(continued) | |||||||||
Pan Pacific International Holdings Corp. (Broadline retail) | 459,300 | $ | 10,958 | ||||||
Rakus Co. Ltd. (Software) | 140,400 | 2,601 | |||||||
SCREEN Holdings Co. Ltd. (Semiconductors & semiconductor equipment) | 49,500 | 4,188 | |||||||
* | SHIFT, Inc. (IT services) | 14,100 | 3,582 | ||||||
Shin-Etsu Chemical Co. Ltd. (Chemicals) | 380,000 | 15,947 | |||||||
SMC Corp. (Machinery) | 8,000 | 4,298 | |||||||
SMS Co. Ltd. (Professional services) | 64,600 | 1,328 | |||||||
Sumitomo Mitsui Financial Group, Inc. (Banks) | 312,500 | 15,248 | |||||||
Sundrug Co. Ltd. (Consumer staples distribution & retail) | 90,100 | 2,896 | |||||||
TechnoPro Holdings, Inc. (Professional services) | 165,700 | 4,366 | |||||||
TIS, Inc. (IT services) | 149,900 | 3,303 | |||||||
Tokio Marine Holdings, Inc. (Insurance) | 529,800 | 13,260 | |||||||
Tokyo Electron Ltd. (Semiconductors & semiconductor equipment) | 74,100 | 13,272 | |||||||
Tsuruha Holdings, Inc. (Consumer staples distribution & retail) | 41,200 | 3,777 | |||||||
227,417 | |||||||||
Emerging Asia—14.2% | |||||||||
China—0.9% | |||||||||
Airtac International Group (Machinery) | 94,713 | 3,117 | |||||||
Kweichow Moutai Co. Ltd. (Beverages) | 37,599 | 9,107 | |||||||
12,224 | |||||||||
India—5.7% | |||||||||
Apollo Hospitals Enterprise Ltd. (Health care providers & services) | 44,917 | 3,081 | |||||||
Asian Paints Ltd. (Chemicals) | 137,161 | 5,596 | |||||||
Britannia Industries Ltd. (Food products) | 47,137 | 3,025 | |||||||
Havells India Ltd. (Electrical equipment) | 212,661 | 3,496 | |||||||
HDFC Bank Ltd. (Banks) | 819,606 | 16,829 | |||||||
Infosys Ltd. (IT services) | 347,710 | 6,446 | |||||||
* | InterGlobe Aviation Ltd. (Passenger airlines) | 106,203 | 3,771 | ||||||
Mahindra & Mahindra Ltd. (Automobiles) | 266,906 | 5,533 | |||||||
Max Healthcare Institute Ltd. (Health care providers & services) | 325,904 | 2,687 | |||||||
Nestle India Ltd. (Food products) | 7,484 | 2,396 | |||||||
Reliance Industries Ltd. (Oil, gas & consumable fuels) | 596,597 | 18,547 | |||||||
Titan Co. Ltd. (Textiles, apparel & luxury goods) | 91,644 | 4,059 | |||||||
Varun Beverages Ltd. (Beverages) | 209,820 | 3,119 | |||||||
Voltas Ltd. (Construction & engineering) | 229,452 | 2,698 | |||||||
81,283 |
See accompanying Notes to Financial Statements.
December 31, 2023 | William Blair Funds | 47 |
International Growth Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Emerging Asia—(continued) | |||||||||
Indonesia—1.2% | |||||||||
Bank Central Asia Tbk. PT (Banks) | 29,142,600 | $ | 17,792 | ||||||
South Korea—2.4% | |||||||||
Samsung Electronics Co. Ltd. (Technology hardware, storage & peripherals) | 369,432 | 22,517 | |||||||
SK Hynix, Inc. (Semiconductors & semiconductor equipment) | 108,884 | 11,963 | |||||||
34,480 | |||||||||
Taiwan—4.0% | |||||||||
Alchip Technologies Ltd. (Semiconductors & semiconductor equipment) | 33,000 | 3,521 | |||||||
Global Unichip Corp. (Semiconductors & semiconductor equipment) | 70,000 | 3,969 | |||||||
Globalwafers Co. Ltd. (Semiconductors & semiconductor equipment) | 159,000 | 3,041 | |||||||
MediaTek, Inc. (Semiconductors & semiconductor equipment) | 370,000 | 12,237 | |||||||
Taiwan Semiconductor Manufacturing Co. Ltd.—ADR (Semiconductors & semiconductor equipment) | 310,449 | 32,287 | |||||||
Unimicron Technology Corp. (Electronic equipment, instruments & components) | 360,000 | 2,064 | |||||||
57,119 | |||||||||
United Kingdom—13.8% | |||||||||
3i Group PLC (Capital markets) | 458,293 | 14,143 | |||||||
Ashtead Group PLC (Trading companies & distributors) | 168,774 | 11,750 | |||||||
AstraZeneca PLC (Pharmaceuticals) | 147,978 | 19,994 | |||||||
BAE Systems PLC (Aerospace & defense) | 677,075 | 9,584 | |||||||
Beazley PLC (Insurance) | 474,310 | 3,156 | |||||||
Big Yellow Group PLC (Specialized REITs) | 184,963 | �� | 2,881 | ||||||
Compass Group PLC (Hotels, restaurants & leisure) | 615,954 | 16,849 | |||||||
ConvaTec Group PLC (Health care equipment & supplies) | 2,302,823 | 7,168 | |||||||
Diploma PLC (Trading companies & distributors) | 133,188 | 6,081 | |||||||
Experian PLC (Professional services) | 186,888 | 7,628 | |||||||
Greggs PLC (Hotels, restaurants & leisure) | 117,121 | 3,884 | |||||||
Haleon PLC (Personal care products) | 2,214,006 | 9,077 | |||||||
Halma PLC (Electronic equipment, instruments & components) | 397,769 | 11,580 | |||||||
Intermediate Capital Group PLC (Capital markets) | 265,071 | 5,678 | |||||||
London Stock Exchange Group PLC (Capital markets) | 179,015 | 21,162 | |||||||
RELX PLC (Professional services) | 284,067 | 11,261 | |||||||
Rentokil Initial PLC (Commercial services & supplies) | 1,948,200 | 10,946 | |||||||
Rotork PLC (Machinery) | 963,176 | 3,973 |
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
United Kingdom—(continued) | |||||||||
Softcat PLC (IT services) | 134,690 | $ | 2,335 | ||||||
Spectris PLC (Electronic equipment, instruments & components) | 86,272 | 4,156 | |||||||
Spirax-Sarco Engineering PLC (Machinery) | 56,574 | 7,575 | |||||||
SSE PLC (Electric utilities) | 163,726 | 3,873 | |||||||
Weir Group PLC (Machinery) | 117,504 | 2,825 | |||||||
197,559 | |||||||||
Canada—8.1% | |||||||||
Alimentation Couche-Tard, Inc. (Consumer staples distribution & retail) | 169,197 | 9,964 | |||||||
Boyd Group Services, Inc. (Commercial services & supplies) | 12,831 | 2,697 | |||||||
Canadian National Railway Co. (Ground transportation) | 101,405 | 12,746 | |||||||
Canadian Pacific Kansas City Ltd. (Ground transportation) | 211,379 | 16,711 | |||||||
CCL Industries, Inc. (Containers & packaging) | 78,530 | 3,532 | |||||||
Constellation Software, Inc. (Software) | 2,865 | 7,103 | |||||||
Dollarama, Inc. (Broadline retail) | 184,081 | 13,266 | |||||||
Intact Financial Corp. (Insurance) | 75,045 | 11,546 | |||||||
* | Kinaxis, Inc. (Software) | 22,951 | 2,576 | ||||||
* | Lululemon Athletica, Inc. (Textiles, apparel & luxury goods) | 22,246 | 11,374 | ||||||
Parkland Corp. (Oil, gas & consumable fuels) | 137,893 | 4,445 | |||||||
TFI International, Inc. (Ground transportation) | 20,160 | 2,742 | |||||||
Toromont Industries Ltd. (Trading companies & distributors) | 86,244 | 7,557 | |||||||
Toronto-Dominion Bank (Banks) | 163,157 | 10,542 | |||||||
116,801 | |||||||||
Emerging Latin America—3.4% | |||||||||
Argentina—0.3% | |||||||||
* | Globant SA (IT services)† | 20,202 | 4,808 | ||||||
Brazil—1.9% | |||||||||
B3 SA - Brasil Bolsa Balcao (Capital markets) | 2,232,700 | 6,687 | |||||||
* | MercadoLibre, Inc. (Broadline retail) | 6,743 | 10,597 | ||||||
Raia Drogasil SA (Consumer staples distribution & retail) | 689,264 | 4,172 | |||||||
Rumo SA (Ground transportation) | 612,100 | 2,892 | |||||||
WEG SA (Electrical equipment) | 408,900 | 3,107 | |||||||
27,455 | |||||||||
Mexico—1.0% | |||||||||
Grupo Aeroportuario del Sureste SAB de CV—ADR (Transportation infrastructure) | 10,292 | 3,029 | |||||||
Wal-Mart de Mexico SAB de CV (Consumer staples distribution & retail) | 2,471,000 | 10,388 | |||||||
13,417 |
See accompanying Notes to Financial Statements.
48 | Annual Report | December 31, 2023 |
International Growth Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Shares or Principal Amount | Value | |||||||
Common Stocks—(continued) | |||||||||
Emerging Latin America—(continued) | |||||||||
Peru—0.2% | |||||||||
Credicorp Ltd. (Banks)† | 18,490 | $ | 2,772 | ||||||
Asia—2.2% | |||||||||
Australia—0.6% | |||||||||
Pro Medicus Ltd. (Health care technology) | 70,984 | 4,635 | |||||||
Steadfast Group Ltd. (Insurance) | 1,015,595 | 4,028 | |||||||
8,663 | |||||||||
Hong Kong—0.9% | |||||||||
AIA Group Ltd. (Insurance) | 791,600 | 6,899 | |||||||
Techtronic Industries Co. Ltd. (Machinery) | 536,000 | 6,387 | |||||||
13,286 | |||||||||
Singapore—0.7% | |||||||||
DBS Group Holdings Ltd. (Banks) | 364,300 | 9,223 | |||||||
Emerging Africa—0.5% | |||||||||
South Africa—0.5% | |||||||||
Bid Corp. Ltd. (Consumer staples distribution & retail) | 218,983 | 5,108 | |||||||
Clicks Group Ltd. (Consumer staples distribution & retail) | 123,750 | 2,203 | |||||||
7,311 | |||||||||
Total Common Stocks—96.4% (cost $1,001,445) | 1,379,964 | ||||||||
Repurchase Agreement | |||||||||
Fixed Income Clearing Corporation, 2.300% dated 12/29/23, due 01/02/24, repurchase price $46,365, collateralized by U.S. Treasury Note, 3.875%, due 12/31/27, valued at $47,280 | $ | 46,353 | 46,353 | ||||||
Total Repurchase Agreement—3.3% (cost $46,353) | 46,353 | ||||||||
Total Investments—99.7% (cost $1,047,798) | 1,426,317 | ||||||||
Cash and other assets, less liabilities—0.3% | 4,787 | ||||||||
Net assets—100.0% | $ | 1,431,104 |
ADR = American Depository Receipt
REIT = Real Estate Investment Trust
* = Non-income producing security
† = U.S. listed foreign security
At December 31, 2023, the Fund’s Portfolio of Investments includes the following industry categories (as a percentage of long-term investments):
Industrials | 26.5 | % | ||
Information Technology | 21.4 | % | ||
Financials | 14.5 | % | ||
Consumer Discretionary | 11.3 | % | ||
Health Care | 9.9 | % | ||
Consumer Staples | 6.6 | % | ||
Materials | 4.8 | % | ||
Energy | 2.9 | % | ||
Communication Services | 1.4 | % | ||
Real Estate | 0.4 | % | ||
Utilities | 0.3 | % | ||
Total | 100.0 | % |
At December 31, 2023, the Fund’s Portfolio of Investments includes the following currency categories (as a percentage of long-term investments):
Euro | 22.4 | % | ||
Japanese Yen | 16.5 | % | ||
British Pound Sterling | 14.3 | % | ||
U.S. Dollar | 10.7 | % | ||
Canadian Dollar | 6.4 | % | ||
Indian Rupee | 5.9 | % | ||
Swiss Franc | 4.8 | % | ||
Swedish Krona | 4.4 | % | ||
Danish Krone | 3.0 | % | ||
South Korean Won | 2.5 | % | ||
New Taiwan Dollar | 2.0 | % | ||
Indonesian Rupiah | 1.3 | % | ||
Brazilian Real | 1.2 | % | ||
All Other Currencies | 4.6 | % | ||
Total | 100.0 | % |
See accompanying Notes to Financial Statements.
December 31, 2023 | William Blair Funds | 49 |
50 | Annual Report | December 31, 2023 |
Institutional International Growth Fund
The stock benefitted from results that beat expectations as well as stronger-than-anticipated economic growth in the U.S. The position was trimmed during the fourth quarter after the recent move in the stock price and an increasing valuation.
MercadoLibre is the leading e-commerce platform in Latin America that has a best-in-class ecosystem of services such as logistics and payments, allowing the company to exploit attractive growth opportunities of the large and underpenetrated total addressable market. Latin America was one of the best performing regions in 2023 as many countries began to ease interest rates amid decreasing inflation rates. Results throughout the year were better than expected with revenue growth accelerating and margins expanding.
Shin-Etsu Chemical helped drive positive selection in Materials. Shin-Etsu has two core businesses: polyvinyl chloride (“PVC”) production and semiconductor wafer manufacturing. PVC is a widely used material, but the bulk of demand is for housing/construction-related products such as white PVC pipes seen in home improvement stores. Semiconductor wafers are the base ingredient for computers chips. In our view, Shin-Etsu has a clear scale advantage across its business units, giving it a superior cost advantage relative to its competitors. Manufacturing expertise is its other competitive advantage, with both skill and efficiency leading to overall better products and better corporate results. The stock had a strong fourth quarter as margins have been holding up better-than-expected and on the positive outlook for the semiconductor industry going forward. Management noted an inflection point in wafer demand, consistent with other segments in the semiconductor value chain.
Please refer to the Global Markets Review and Outlook relating to the Fund beginning on page 32.
December 31, 2023 | William Blair Funds | 51 |
Institutional International Growth Fund
Performance Highlights (Unaudited)
Average Annual Total Returns through 12/31/2023
1 Year | 3 Year | 5 Year | 10 Year | |||||||||||||
Institutional International Growth Fund | 15.20 | % | (3.32 | )% | 9.38 | % | 4.75 | % | ||||||||
MSCI ACW ex-U.S. IMI (net) | 15.62 | 1.53 | 7.18 | 3.97 |
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are average annual total returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272, or visit our Web site at www.williamblairfunds.com. From time to time, the investment adviser may waive fees or reimburse expenses for the Fund. Without these waivers/reimbursements, performance would be lower. Investing in smaller and medium capitalization companies involves special risks, including higher volatility and lower liquidity. Smaller and medium capitalization stocks are also more sensitive to purchase/sale transactions and changes in the issuer’s financial condition. International investing involves special risk considerations, including currency fluctuations, lower liquidity, economic and political risk. Shares of the Fund are not subject to a sales load, distribution (Rule 12b-1) fees, or sub-transfer agent fees.
The performance highlights and graph presented above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The Morgan Stanley Capital International (MSCI) All Country World (ACW) ex-U.S. Investable Market Index (IMI) (net) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of developed and emerging markets, excluding the United States. This index approximates the minimum possible dividend reinvestment by deducting for the highest possible withholding tax rates of those markets.
This report identifies the Fund’s investments on December 31, 2023. These holdings are subject to change. Not all stocks in the Fund performed the same, nor is there any guarantee that these stocks will perform as well in the future. Market forecasts provided in this report may not necessarily come to pass.
Sector Diversification (Unaudited)
The sector diversification shown is based on the total long-term securities.
52 | Annual Report | December 31, 2023 |
Institutional International Growth Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks | |||||||||
Europe, Mid-East—38.4% | |||||||||
Belgium—0.2% | |||||||||
Warehouses De Pauw CVA (Industrial REITs) | 48,417 | $ | 1,523 | ||||||
Denmark—2.9% | |||||||||
DSV AS (Air freight & logistics) | 49,264 | 8,649 | |||||||
Novo Nordisk AS (Pharmaceuticals) | 177,858 | 18,387 | |||||||
27,036 | |||||||||
Finland—0.3% | |||||||||
Metso OYJ (Machinery) | 149,389 | 1,512 | |||||||
Valmet OYJ (Machinery) | 47,769 | 1,377 | |||||||
2,889 | |||||||||
France—11.4% | |||||||||
Airbus SE (Aerospace & defense) | 85,055 | 13,125 | |||||||
Capgemini SE (IT services) | 29,023 | 6,048 | |||||||
Dassault Systemes SE (Software) | 265,130 | 12,947 | |||||||
Hermes International SCA (Textiles, apparel & luxury goods) | 3,593 | 7,611 | |||||||
L’Oreal SA (Personal care products) | 17,738 | 8,825 | |||||||
LVMH Moet Hennessy Louis Vuitton SE (Textiles, apparel & luxury goods) | 10,333 | 8,368 | |||||||
Publicis Groupe SA (Media) | 61,312 | 5,686 | |||||||
Safran SA (Aerospace & defense) | 63,660 | 11,206 | |||||||
SEB SA (Household durables) | 12,060 | 1,504 | |||||||
* | SES-imagotag SA (Electronic equipment, instruments & components) | 10,698 | 1,604 | ||||||
Thales SA (Aerospace & defense) | 65,021 | 9,615 | |||||||
TotalEnergies SE (Oil, gas & consumable fuels) | 159,369 | 10,838 | |||||||
Vinci SA (Construction & engineering) | 71,945 | 9,030 | |||||||
106,407 | |||||||||
Germany—3.0% | |||||||||
CTS Eventim AG & Co. KGaA (Entertainment) | 55,296 | 3,821 | |||||||
Hannover Rueck SE (Insurance) | 27,262 | 6,510 | |||||||
Infineon Technologies AG (Semiconductors & semiconductor equipment) | 160,876 | 6,713 | |||||||
MTU Aero Engines AG (Aerospace & defense) | 34,162 | 7,364 | |||||||
Nemetschek SE (Software) | 23,118 | 2,003 | |||||||
Siltronic AG (Semiconductors & semiconductor equipment) | 14,135 | 1,380 | |||||||
27,791 | |||||||||
Ireland—4.7% | |||||||||
CRH PLC (Construction materials)† | 71,053 | 4,914 | |||||||
* | ICON PLC (Life sciences tools & services)† | 31,718 | 8,979 | ||||||
Kingspan Group PLC (Building products) | 120,603 | 10,438 | |||||||
Linde PLC (Chemicals)† | 26,180 | 10,752 | |||||||
* | Ryanair Holdings PLC—ADR (Passenger airlines) | 62,907 | 8,389 | ||||||
43,472 |
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Europe, Mid-East—(continued) | |||||||||
Israel—0.3% | |||||||||
* | Nice Ltd.—ADR (Software) | 16,227 | $ | 3,238 | |||||
Italy—1.7% | |||||||||
Azimut Holding SpA (Capital markets) | 53,794 | 1,404 | |||||||
Brembo SpA (Automobile components) | 83,775 | 1,027 | |||||||
Brunello Cucinelli SpA (Textiles, apparel & luxury goods) | 34,694 | 3,393 | |||||||
Ferrari NV (Automobiles)† | 17,091 | 5,784 | |||||||
Moncler SpA (Textiles, apparel & luxury goods) | 49,526 | 3,045 | |||||||
Stevanato Group SpA (Life sciences tools & services)† | 40,781 | 1,113 | |||||||
15,766 | |||||||||
Netherlands—3.1% | |||||||||
ASML Holding NV (Semiconductors & semiconductor equipment) | 24,061 | 18,107 | |||||||
BE Semiconductor Industries NV (Semiconductors & semiconductor equipment) | 34,582 | 5,209 | |||||||
IMCD NV (Trading companies & distributors) | 23,303 | 4,053 | |||||||
JDE Peet’s NV (Food products) | 55,125 | 1,483 | |||||||
28,852 | |||||||||
Norway—0.4% | |||||||||
* | AutoStore Holdings Ltd. (Machinery) | 898,820 | 1,767 | ||||||
Gjensidige Forsikring ASA (Insurance) | 86,304 | 1,593 | |||||||
3,360 | |||||||||
Spain—1.5% | |||||||||
Amadeus IT Group SA (Hotels, restaurants & leisure) | 101,103 | 7,241 | |||||||
Industria de Diseno Textil SA (Specialty retail) | 163,796 | 7,130 | |||||||
14,371 | |||||||||
Sweden—4.2% | |||||||||
Atlas Copco AB (Machinery) | 529,746 | 9,115 | |||||||
Beijer Ref AB (Trading companies & distributors) | 235,403 | 3,149 | |||||||
Evolution AB (Hotels, restaurants & leisure) | 59,141 | 7,049 | |||||||
Fortnox AB (Software) | 262,311 | 1,568 | |||||||
Hemnet Group AB (Interactive media & services) | 81,619 | 1,953 | |||||||
Hexagon AB (Electronic equipment, instruments & components) | 481,093 | 5,769 | |||||||
Indutrade AB (Machinery) | 139,220 | 3,614 | |||||||
Lifco AB (Industrial conglomerates) | 135,879 | 3,330 | |||||||
Nibe Industrier AB (Building products) | 310,945 | 2,183 | |||||||
Sweco AB (Construction & engineering) | 103,564 | 1,387 | |||||||
39,117 |
See accompanying Notes to Financial Statements.
December 31, 2023 | William Blair Funds | 53 |
Institutional International Growth Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Europe, Mid-East—(continued) | |||||||||
Switzerland—4.7% | |||||||||
Belimo Holding AG (Building products) | 4,378 | $ | 2,414 | ||||||
Galenica AG (Health care providers & services) | 29,016 | 2,510 | |||||||
Partners Group Holding AG (Capital markets) | 2,910 | 4,197 | |||||||
Siegfried Holding AG (Life sciences tools & services) | 2,363 | 2,415 | |||||||
SIG Group AG (Containers & packaging) | 161,351 | 3,712 | |||||||
Sika AG (Chemicals) | 23,672 | 7,703 | |||||||
Straumann Holding AG (Health care equipment & supplies) | 25,423 | 4,099 | |||||||
Tecan Group AG (Life sciences tools & services) | 7,861 | 3,210 | |||||||
VAT Group AG (Machinery) | 10,982 | 5,504 | |||||||
Zurich Insurance Group AG (Insurance) | 14,530 | 7,595 | |||||||
43,359 | |||||||||
Japan—15.9% | |||||||||
Ajinomoto Co., Inc. (Food products) | 108,200 | 4,174 | |||||||
BayCurrent Consulting, Inc. (Professional services) | 52,400 | 1,840 | |||||||
Chugai Pharmaceutical Co. Ltd. (Pharmaceuticals) | 197,000 | 7,464 | |||||||
Daiichi Sankyo Co. Ltd. (Pharmaceuticals) | 242,000 | 6,646 | |||||||
Daikin Industries Ltd. (Building products) | 25,300 | 4,124 | |||||||
Disco Corp. (Semiconductors & semiconductor equipment) | 20,500 | 5,086 | |||||||
Harmonic Drive Systems, Inc. (Machinery) | 64,700 | 1,909 | |||||||
Hoya Corp. (Health care equipment & supplies) | 78,800 | 9,850 | |||||||
Internet Initiative Japan, Inc. (Diversified telecommunication services) | 51,200 | 1,047 | |||||||
ITOCHU Corp. (Trading companies & distributors) | 112,400 | 4,597 | |||||||
Japan Elevator Service Holdings Co. Ltd. (Commercial services & supplies) | 86,700 | 1,438 | |||||||
Japan Exchange Group, Inc. (Capital markets) | 263,600 | 5,577 | |||||||
Keyence Corp. (Electronic equipment, instruments & components) | 29,900 | 13,173 | |||||||
Lasertec Corp. (Semiconductors & semiconductor equipment) | 22,900 | 6,037 | |||||||
MatsukiyoCocokara & Co. (Consumer staples distribution & retail) | 150,800 | 2,671 | |||||||
Mitsui & Co. Ltd. (Trading companies & distributors) | 113,200 | 4,253 | |||||||
MonotaRO Co. Ltd. (Trading companies & distributors) | 240,200 | 2,623 | |||||||
Nomura Research Institute Ltd. (IT services) | 40,000 | 1,163 |
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Japan—(continued) | |||||||||
Pan Pacific International Holdings Corp. (Broadline retail) | 299,400 | $ | 7,143 | ||||||
Rakus Co. Ltd. (Software) | 91,500 | 1,695 | |||||||
SCREEN Holdings Co. Ltd. (Semiconductors & semiconductor equipment) | 32,300 | 2,733 | |||||||
* | SHIFT, Inc. (IT services) | 9,200 | 2,337 | ||||||
Shin-Etsu Chemical Co. Ltd. (Chemicals) | 246,900 | 10,361 | |||||||
SMC Corp. (Machinery) | 5,000 | 2,687 | |||||||
SMS Co. Ltd. (Professional services) | 42,100 | 866 | |||||||
Sumitomo Mitsui Financial Group, Inc. (Banks) | 203,700 | 9,939 | |||||||
Sundrug Co. Ltd. (Consumer staples distribution & retail) | 58,800 | 1,890 | |||||||
TechnoPro Holdings, Inc. (Professional services) | 107,500 | 2,832 | |||||||
TIS, Inc. (IT services) | 97,300 | 2,144 | |||||||
Tokio Marine Holdings, Inc. (Insurance) | 345,400 | 8,645 | |||||||
Tokyo Electron Ltd. (Semiconductors & semiconductor equipment) | 48,300 | 8,651 | |||||||
Tsuruha Holdings, Inc. (Consumer staples distribution & retail) | 26,900 | 2,466 | |||||||
148,061 | |||||||||
Emerging Asia—14.2% | |||||||||
China—0.9% | |||||||||
Airtac International Group (Machinery) | 61,204 | 2,014 | |||||||
Kweichow Moutai Co. Ltd. (Beverages) | 24,500 | 5,935 | |||||||
7,949 | |||||||||
India—5.7% | |||||||||
Apollo Hospitals Enterprise Ltd. (Health care providers & services) | 29,145 | 1,999 | |||||||
Asian Paints Ltd. (Chemicals) | 89,275 | 3,642 | |||||||
Britannia Industries Ltd. (Food products) | 30,724 | 1,972 | |||||||
Havells India Ltd. (Electrical equipment) | 137,990 | 2,268 | |||||||
HDFC Bank Ltd. (Banks) | 534,223 | 10,969 | |||||||
Infosys Ltd. (IT services) | 226,316 | 4,196 | |||||||
* | InterGlobe Aviation Ltd. (Passenger airlines) | 69,224 | 2,458 | ||||||
Mahindra & Mahindra Ltd. (Automobiles) | 173,970 | 3,607 | |||||||
Max Healthcare Institute Ltd. (Health care providers & services) | 212,426 | 1,751 | |||||||
Nestle India Ltd. (Food products) | 4,878 | 1,562 | |||||||
Reliance Industries Ltd. (Oil, gas & consumable fuels) | 388,865 | 12,089 | |||||||
Titan Co. Ltd. (Textiles, apparel & luxury goods) | 59,465 | 2,634 | |||||||
Varun Beverages Ltd. (Beverages) | 136,761 | 2,033 | |||||||
Voltas Ltd. (Construction & engineering) | 149,558 | 1,758 | |||||||
52,938 |
See accompanying Notes to Financial Statements.
54 | Annual Report | December 31, 2023 |
Institutional International Growth Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Emerging Asia—(continued) | |||||||||
Indonesia—1.2% | |||||||||
Bank Central Asia Tbk. PT (Banks) | 18,995,230 | $ | 11,597 | ||||||
South Korea—2.4% | |||||||||
Samsung Electronics Co. Ltd. (Technology hardware, storage & peripherals) | 240,797 | 14,677 | |||||||
SK Hynix, Inc. (Semiconductors & semiconductor equipment) | 70,971 | 7,797 | |||||||
22,474 | |||||||||
Taiwan—4.0% | |||||||||
Alchip Technologies Ltd. (Semiconductors & semiconductor equipment) | 21,000 | 2,241 | |||||||
Global Unichip Corp. (Semiconductors & semiconductor equipment) | 46,000 | 2,608 | |||||||
Globalwafers Co. Ltd. (Semiconductors & semiconductor equipment) | 104,000 | 1,989 | |||||||
MediaTek, Inc. (Semiconductors & semiconductor equipment) | 241,000 | 7,970 | |||||||
Taiwan Semiconductor Manufacturing Co. Ltd.—ADR (Semiconductors & semiconductor equipment) | 202,352 | 21,045 | |||||||
Unimicron Technology Corp. (Electronic equipment, instruments & components) | 235,000 | 1,348 | |||||||
37,201 | |||||||||
United Kingdom—13.9% | |||||||||
3i Group PLC (Capital markets) | 297,785 | 9,189 | |||||||
Ashtead Group PLC (Trading companies & distributors) | 110,007 | 7,659 | |||||||
AstraZeneca PLC (Pharmaceuticals) | 96,453 | 13,032 | |||||||
BAE Systems PLC (Aerospace & defense) | 441,321 | 6,247 | |||||||
Beazley PLC (Insurance) | 307,768 | 2,048 | |||||||
Big Yellow Group PLC (Specialized REITs) | 120,560 | 1,878 | |||||||
Compass Group PLC (Hotels, restaurants & leisure) | 401,482 | 10,982 | |||||||
ConvaTec Group PLC (Health care equipment & supplies) | 1,500,991 | 4,672 | |||||||
Diploma PLC (Trading companies & distributors) | 86,689 | 3,958 | |||||||
Experian PLC (Professional services) | 121,815 | 4,972 | |||||||
Greggs PLC (Hotels, restaurants & leisure) | 75,997 | 2,520 | |||||||
Haleon PLC (Personal care products) | 1,443,099 | 5,917 | |||||||
Halma PLC (Electronic equipment, instruments & components) | 259,267 | 7,548 | |||||||
Intermediate Capital Group PLC (Capital markets) | 172,529 | 3,696 | |||||||
London Stock Exchange Group PLC (Capital markets) | 116,683 | 13,793 | |||||||
RELX PLC (Professional services) | 185,156 | 7,340 | |||||||
Rentokil Initial PLC (Commercial services & supplies) | 1,269,846 | 7,135 |
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
United Kingdom—(continued) | |||||||||
Rotork PLC (Machinery) | 624,981 | $ | 2,578 | ||||||
Softcat PLC (IT services) | 87,792 | 1,522 | |||||||
Spectris PLC (Electronic equipment, instruments & components) | 55,980 | 2,696 | |||||||
Spirax-Sarco Engineering PLC (Machinery) | 36,875 | 4,938 | |||||||
SSE PLC (Electric utilities) | 106,238 | 2,513 | |||||||
Weir Group PLC (Machinery) | 76,589 | 1,842 | |||||||
128,675 | |||||||||
Canada—8.2% | |||||||||
Alimentation Couche-Tard, Inc. (Consumer staples distribution & retail) | 110,284 | 6,494 | |||||||
Boyd Group Services, Inc. (Commercial services & supplies) | 8,363 | 1,757 | |||||||
Canadian National Railway Co. (Ground transportation) | 66,096 | 8,308 | |||||||
Canadian Pacific Kansas City Ltd. (Ground transportation) | 137,778 | 10,893 | |||||||
CCL Industries, Inc. (Containers & packaging) | 51,186 | 2,302 | |||||||
Constellation Software, Inc. (Software) | 1,867 | 4,629 | |||||||
Dollarama, Inc. (Broadline retail) | 119,985 | 8,647 | |||||||
Intact Financial Corp. (Insurance) | 48,914 | 7,525 | |||||||
* | Kinaxis, Inc. (Software) | 14,959 | 1,679 | ||||||
* | Lululemon Athletica, Inc. (Textiles, apparel & luxury goods) | 14,500 | 7,414 | ||||||
Parkland Corp. (Oil, gas & consumable fuels) | 89,475 | 2,884 | |||||||
TFI International, Inc. (Ground transportation) | 13,100 | 1,782 | |||||||
Toromont Industries Ltd. (Trading companies & distributors) | 56,214 | 4,925 | |||||||
Toronto-Dominion Bank (Banks) | 106,346 | 6,872 | |||||||
76,111 | |||||||||
Emerging Latin America—3.4% | |||||||||
Argentina—0.3% | |||||||||
* | Globant SA (IT services)† | 13,108 | 3,119 | ||||||
Brazil—1.9% | |||||||||
B3 SA - Brasil Bolsa Balcao (Capital markets) | 1,453,200 | 4,353 | |||||||
* | MercadoLibre, Inc. (Broadline retail) | 4,395 | 6,907 | ||||||
Raia Drogasil SA (Consumer staples distribution & retail) | 447,200 | 2,707 | |||||||
Rumo SA (Ground transportation) | 397,200 | 1,876 | |||||||
WEG SA (Electrical equipment) | 265,300 | 2,016 | |||||||
17,859 | |||||||||
Mexico—1.0% | |||||||||
Grupo Aeroportuario del Sureste SAB de CV—ADR (Transportation infrastructure) | 6,708 | 1,974 | |||||||
Wal-Mart de Mexico SAB de CV (Consumer staples distribution & retail) | 1,610,600 | 6,771 | |||||||
8,745 |
See accompanying Notes to Financial Statements.
December 31, 2023 | William Blair Funds | 55 |
Institutional International Growth Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Shares or Principal Amount | Value | |||||||
Common Stocks—(continued) | |||||||||
Emerging Latin America—(continued) | |||||||||
Peru—0.2% | |||||||||
Credicorp Ltd. (Banks)† | 12,052 | $ | 1,807 | ||||||
Asia—2.2% | |||||||||
Australia—0.6% | |||||||||
Pro Medicus Ltd. (Health care technology) | 46,060 | 3,008 | |||||||
Steadfast Group Ltd. (Insurance) | 661,970 | 2,625 | |||||||
5,633 | |||||||||
Hong Kong—0.9% | |||||||||
AIA Group Ltd. (Insurance) | 516,063 | 4,497 | |||||||
Techtronic Industries Co. Ltd. (Machinery) | 349,000 | 4,159 | |||||||
8,656 | |||||||||
Singapore—0.7% | |||||||||
DBS Group Holdings Ltd. (Banks) | 237,400 | 6,010 | |||||||
Emerging Africa—0.5% | |||||||||
South Africa—0.5% | |||||||||
Bid Corp. Ltd. (Consumer staples distribution & retail) | 142,531 | 3,325 | |||||||
Clicks Group Ltd. (Consumer staples distribution & retail) | 80,661 | 1,436 | |||||||
4,761 | |||||||||
Total Common Stocks—96.7% (cost $661,685) | 898,777 | ||||||||
Repurchase Agreement | |||||||||
Fixed Income Clearing Corporation, 2.300% dated 12/29/23, due 01/02/24, repurchase price $32,155, collateralized by U.S. Treasury Note, 3.875%, due 12/31/27, valued at $32,790 | $ | 32,147 | 32,147 | ||||||
Total Repurchase Agreement—3.5% (cost $32,147) | 32,147 | ||||||||
Total Investments—100.2% (cost $693,832) | 930,924 | ||||||||
Liabilities, plus cash and other assets—(0.2)% | (1,450 | ) | |||||||
Net assets—100.0% | $ | 929,474 |
ADR = American Depository Receipt
REIT = Real Estate Investment Trust
* = Non-income producing security
† = U.S. listed foreign security
At December 31, 2023, the Fund’s Portfolio of Investments includes the following industry categories (as a percentage of long-term investments):
| |
Industrials | 26.5% |
Information Technology | 21.4% |
Financials | 14.5% |
Consumer Discretionary | 11.3% |
Health Care | 9.9% |
Consumer Staples | 6.6% |
Materials | 4.8% |
Energy | 2.9% |
Communication Services | 1.4% |
Real Estate | 0.4% |
Utilities | 0.3% |
Total | 100.0% |
At December 31, 2023, the Fund’s Portfolio of Investments includes the following currency categories (as a percentage of long-term investments):
| |
Euro | 22.4% |
Japanese Yen | 16.5% |
British Pound Sterling | 14.3% |
U.S. Dollar | 10.7% |
Canadian Dollar | 6.4% |
Indian Rupee | 5.9% |
Swiss Franc | 4.8% |
Swedish Krona | 4.4% |
Danish Krone | 3.0% |
South Korean Won | 2.5% |
New Taiwan Dollar | 2.0% |
Indonesian Rupiah | 1.3% |
Brazilian Real | 1.2% |
All Other Currencies | 4.6% |
Total | 100.0% |
See accompanying Notes to Financial Statements.
56 | Annual Report | December 31, 2023 |
December 31, 2023 | William Blair Funds | 57 |
International Small Cap Growth Fund
Performance Highlights (Unaudited)
Average Annual Total Returns through 12/31/2023
1 Year | 3 Year | 5 Year | 10 Year | |||||||||||||
Class N | 14.42 | % | (6.30 | )% | 7.21 | % | 3.08 | % | ||||||||
Class I | 14.70 | (6.06 | ) | 7.50 | 3.37 | |||||||||||
Class R6 | 14.76 | (5.99 | ) | 7.60 | 3.47 | |||||||||||
MSCI ACW ex-U.S. Small Cap Index (net) | 15.66 | 1.49 | 7.89 | 4.88 |
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are average annual total returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272, or visit our Web site at www.williamblairfunds.com. From time to time, the investment adviser may waive fees or reimburse expenses for the Fund. Without these waivers/reimbursements, performance would be lower. Investing in smaller companies involves special risks, including higher volatility and lower liquidity. Smaller capitalization stocks are also more sensitive to purchase/sale transactions and changes in the issuer’s financial condition. International investing involves special risk considerations, including currency fluctuations, lower liquidity, economic and political risk. Class N shares are not subject to a sales load. Class I shares are not subject to a sales load or distribution (Rule 12b-1) fees. Class R6 shares are not subject to a sales load, distribution (Rule 12b-1) fees, or sub-transfer agent fees.
The performance highlights and graph presented above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The Morgan Stanley Capital International (MSCI) All Country World (ACW) ex-U.S. Small Cap Index (net) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of small capitalization developed and emerging markets, excluding the United States. This index approximates the minimum possible dividend reinvestment by deducting for the highest possible withholding tax rates of those markets.
This report identifies the Fund’s investments on December 31, 2023. 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.
58 | Annual Report | December 31, 2023 |
International Small Cap Growth Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks | |||||||||
Europe—32.1% | |||||||||
Belgium—1.3% | |||||||||
Azelis Group NV (Trading companies & distributors) | 12,982 | $ | 318 | ||||||
D’ieteren Group (Distributors) | 14,778 | 2,886 | |||||||
3,204 | |||||||||
Finland—1.1% | |||||||||
Musti Group OYJ (Specialty retail) | 51,815 | 1,494 | |||||||
Valmet OYJ (Machinery) | 41,665 | 1,201 | |||||||
2,695 | |||||||||
France—3.7% | |||||||||
Dassault Aviation SA (Aerospace & defense) | 19,359 | 3,830 | |||||||
Remy Cointreau SA (Beverages) | 6,859 | 871 | |||||||
SEB SA (Household durables) | 10,520 | 1,312 | |||||||
* | SES-imagotag SA (Electronic equipment, instruments & components) | 19,464 | 2,918 | ||||||
�� | 8,931 | ||||||||
Germany—3.8% | |||||||||
CTS Eventim AG & Co. KGaA (Entertainment) | 49,446 | 3,417 | |||||||
Nemetschek SE (Software) | 19,097 | 1,655 | |||||||
Siltronic AG (Semiconductors & semiconductor equipment) | 41,908 | 4,092 | |||||||
9,164 | |||||||||
Italy—4.8% | |||||||||
Ariston Holding NV (Household durables) | 361,636 | 2,501 | |||||||
Azimut Holding SpA (Capital markets) | 60,032 | 1,567 | |||||||
Brunello Cucinelli SpA (Textiles, apparel & luxury goods) | 32,086 | 3,139 | |||||||
Carel Industries SpA (Building products) | 80,404 | 2,201 | |||||||
Sanlorenzo SpA (Leisure products) | 12,834 | 600 | |||||||
Stevanato Group SpA (Life sciences tools & services)† | 59,557 | 1,625 | |||||||
11,633 | |||||||||
Jersey—0.3% | |||||||||
JTC PLC (Capital markets) | 58,567 | 609 | |||||||
Netherlands—2.4% | |||||||||
BE Semiconductor Industries NV (Semiconductors & semiconductor equipment) | 35,203 | 5,303 | |||||||
JDE Peet’s NV (Food products) | 20,775 | 558 | |||||||
5,861 | |||||||||
Norway—1.4% | |||||||||
* | AutoStore Holdings Ltd. (Machinery) | 828,708 | 1,629 | ||||||
Gjensidige Forsikring ASA (Insurance) | 93,410 | 1,724 | |||||||
3,353 |
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Europe—(continued) | |||||||||
Sweden—9.8% | |||||||||
AddTech AB (Trading companies & distributors) | 136,540 | $ | 2,997 | ||||||
Beijer Ref AB (Trading companies & distributors) | 185,572 | 2,482 | |||||||
Bravida Holding AB (Commercial services & supplies) | 105,116 | 845 | |||||||
Bufab AB (Trading companies & distributors) | 43,241 | 1,657 | |||||||
Fortnox AB (Software) | 458,522 | 2,740 | |||||||
Hemnet Group AB (Interactive media & services) | 80,953 | 1,938 | |||||||
Lagercrantz Group AB (Electronic equipment, instruments & components) | 179,730 | 2,407 | |||||||
Lifco AB (Industrial conglomerates) | 115,934 | 2,841 | |||||||
MIPS AB (Leisure products) | 32,448 | 1,173 | |||||||
* | Sdiptech AB (Commercial services & supplies) | 58,927 | 1,576 | ||||||
Sweco AB (Construction & engineering) | 135,737 | 1,818 | |||||||
Vitec Software Group AB (Software) | 16,640 | 966 | |||||||
23,440 | |||||||||
Switzerland—3.5% | |||||||||
Galenica AG (Health care providers & services) | 22,784 | 1,971 | |||||||
Kardex Holding AG (Machinery) | 14,065 | 3,646 | |||||||
Siegfried Holding AG (Life sciences tools & services) | 2,664 | 2,722 | |||||||
8,339 | |||||||||
Japan—17.8% | |||||||||
AZ-COM MARUWA Holdings, Inc. (Air freight & logistics) | 168,200 | 1,824 | |||||||
BayCurrent Consulting, Inc. (Professional services) | 69,300 | 2,433 | |||||||
Fukuoka Financial Group, Inc. (Banks) | 83,300 | 1,966 | |||||||
Internet Initiative Japan, Inc. (Diversified telecommunication services) | 49,000 | 1,002 | |||||||
Japan Elevator Service Holdings Co. Ltd. (Commercial services & supplies) | 212,900 | 3,530 | |||||||
* | Kokusai Electric Corp. (Semiconductors & semiconductor equipment) | 98,600 | 2,143 | ||||||
Kotobuki Spirits Co. Ltd. (Food products) | 101,300 | 1,553 | |||||||
MEITEC Group Holdings, Inc. (Professional services) | 183,800 | 3,685 | |||||||
PAL GROUP Holdings Co. Ltd. (Specialty retail) | 122,600 | 2,142 | |||||||
Prestige International, Inc. (Commercial services & supplies) | 168,800 | 718 | |||||||
Rakus Co. Ltd. (Software) | 125,000 | 2,316 | |||||||
SBI Sumishin Net Bank Ltd. (Banks) | 65,700 | 721 | |||||||
Senko Group Holdings Co. Ltd. (Air freight & logistics) | 45,800 | 371 | |||||||
* | SHIFT, Inc. (IT services) | 12,100 | 3,074 |
See accompanying Notes to Financial Statements.
December 31, 2023 | William Blair Funds | 59 |
International Small Cap Growth Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Japan—(continued) | |||||||||
SIGMAXYZ Holdings, Inc. (Professional services) | 89,800 | $ | 924 | ||||||
SMS Co. Ltd. (Professional services) | 168,600 | 3,467 | |||||||
Socionext, Inc. (Semiconductors & semiconductor equipment) | 69,500 | 1,262 | |||||||
Sundrug Co. Ltd. (Consumer staples distribution & retail) | 82,000 | 2,636 | |||||||
TechnoPro Holdings, Inc. (Professional services) | 156,500 | 4,123 | |||||||
TIS, Inc. (IT services) | 82,600 | 1,820 | |||||||
Yamazaki Baking Co. Ltd. (Food products) | 54,000 | 1,232 | |||||||
42,942 | |||||||||
Emerging Asia—16.3% | |||||||||
China—1.4% | |||||||||
Proya Cosmetics Co. Ltd. (Personal care products) | 151,091 | 2,108 | |||||||
Silergy Corp. (Semiconductors & semiconductor equipment) | 82,000 | 1,336 | |||||||
3,444 | |||||||||
India—8.4% | |||||||||
AU Small Finance Bank Ltd. (Banks) | 375,991 | 3,547 | |||||||
Cholamandalam Investment & Finance Co. Ltd. (Consumer finance) | 121,360 | 1,838 | |||||||
Home First Finance Co. India Ltd. (Financial services) | 82,781 | 927 | |||||||
Max Healthcare Institute Ltd. (Health care providers & services) | 233,331 | 1,924 | |||||||
Motherson Sumi Wiring India Ltd. (Automobile components) | 2,595,482 | 1,924 | |||||||
Polycab India Ltd. (Electrical equipment) | 40,255 | 2,661 | |||||||
Sundaram Finance Ltd. (Consumer finance) | 26,527 | 1,113 | |||||||
Tube Investments of India Ltd. (Automobile components) | 51,586 | 2,194 | |||||||
Varun Beverages Ltd. (Beverages) | 274,297 | 4,077 | |||||||
20,205 | |||||||||
Indonesia—0.5% | |||||||||
Bank Negara Indonesia Persero Tbk. PT (Banks) | 3,630,900 | 1,268 | |||||||
Taiwan—5.5% | |||||||||
ASMedia Technology, Inc. (Semiconductors & semiconductor equipment) | 31,000 | 1,833 | |||||||
ASPEED Technology, Inc. (Semiconductors & semiconductor equipment) | 22,600 | 2,297 | |||||||
Global Unichip Corp. (Semiconductors & semiconductor equipment) | 46,000 | 2,608 | |||||||
Innodisk Corp. (Technology hardware, storage & peripherals) | 184,000 | 1,871 | |||||||
Lotes Co. Ltd. (Electronic equipment, instruments & components) | 36,000 | 1,255 | |||||||
Parade Technologies Ltd. (Semiconductors & semiconductor equipment) | 31,000 | 1,212 |
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Emerging Asia—(continued) | |||||||||
Taiwan—(continued) | |||||||||
Voltronic Power Technology Corp. (Electrical equipment) | 36,451 | $ | 2,031 | ||||||
13,107 | |||||||||
Thailand—0.5% | |||||||||
Tisco Financial Group PCL (Banks) | 409,600 | 1,197 | |||||||
Emerging Latin America—9.2% | |||||||||
Brazil—3.4% | |||||||||
Multiplan Empreendimentos Imobiliarios SA (Real estate management & development) | 297,200 | 1,739 | |||||||
Rumo SA (Ground transportation) | 397,800 | 1,880 | |||||||
TOTVS SA (Software) | 365,700 | 2,536 | |||||||
Vivara Participacoes SA (Textiles, apparel & luxury goods) | 274,600 | 1,936 | |||||||
8,091 | |||||||||
Mexico—5.8% | |||||||||
Arca Continental SAB de CV (Beverages) | 106,200 | 1,157 | |||||||
Corp. Inmobiliaria Vesta SAB de CV (Real estate management & development) | 747,000 | 2,962 | |||||||
Corp. Inmobiliaria Vesta SAB de CV—ADR (Real estate management & development) | 6,060 | 240 | |||||||
Grupo Aeroportuario del Centro Norte SAB de CV (Transportation infrastructure) | 347,500 | 3,675 | |||||||
Grupo Aeroportuario del Sureste SAB de CV (Transportation infrastructure) | 82,770 | 2,432 | |||||||
Qualitas Controladora SAB de CV (Insurance) | 216,100 | 2,188 | |||||||
Regional SAB de CV (Banks) | 146,500 | 1,401 | |||||||
14,055 | |||||||||
United Kingdom—8.3% | |||||||||
Beazley PLC (Insurance) | 572,854 | 3,812 | |||||||
Burford Capital Ltd. (Financial services) | 161,072 | 2,490 | |||||||
Diploma PLC (Trading companies & distributors) | 90,621 | 4,138 | |||||||
Greggs PLC (Hotels, restaurants & leisure) | 75,845 | 2,515 | |||||||
Renishaw PLC (Electronic equipment, instruments & components) | 23,043 | 1,051 | |||||||
Rotork PLC (Machinery) | 825,280 | 3,404 | |||||||
Softcat PLC (IT services) | 143,176 | 2,482 | |||||||
19,892 | |||||||||
Canada—7.5% | |||||||||
Boyd Group Services, Inc. (Commercial services & supplies) | 13,905 | 2,922 | |||||||
EQB, Inc. (Banks) | 26,764 | 1,762 | |||||||
* | Kinaxis, Inc. (Software) | 25,043 | 2,811 | ||||||
North West Co., Inc. (Consumer staples distribution & retail) | 122,164 | 3,620 |
See accompanying Notes to Financial Statements.
60 | Annual Report | December 31, 2023 |
International Small Cap Growth Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Shares or Principal Amount | Value | |||||||
Common Stocks—(continued) | |||||||||
Canada—(continued) | |||||||||
Parkland Corp. (Oil, gas & consumable fuels) | 107,287 | $ | 3,458 | ||||||
Richelieu Hardware Ltd. (Trading companies & distributors) | 48,427 | 1,754 | |||||||
Stella-Jones, Inc. (Paper & forest products) | 31,223 | 1,817 | |||||||
18,144 | |||||||||
Asia—4.6% | |||||||||
Australia—3.0% | |||||||||
Pro Medicus Ltd. (Health care technology) | 58,208 | 3,801 | |||||||
Steadfast Group Ltd. (Insurance) | 847,520 | 3,361 | |||||||
7,162 | |||||||||
New Zealand—1.3% | |||||||||
Mainfreight Ltd. (Air freight & logistics) | 70,560 | 3,091 | |||||||
Singapore—0.3% | |||||||||
Sheng Siong Group Ltd. (Consumer staples distribution & retail) | 643,800 | 781 | |||||||
Emerging Europe, Africa—3.1% | |||||||||
Greece—1.0% | |||||||||
JUMBO SA (Specialty retail) | 91,655 | 2,542 | |||||||
Poland—1.0% | |||||||||
* | Dino Polska SA (Consumer staples distribution & retail) | 19,682 | 2,304 | ||||||
South Africa—1.1% | |||||||||
Bidvest Group Ltd. (Industrial conglomerates) | 83,400 | 1,150 | |||||||
Clicks Group Ltd. (Consumer staples distribution & retail) | 80,170 | 1,428 | |||||||
2,578 | |||||||||
Total Common Stocks—98.9% (cost $194,330) | 238,032 | ||||||||
Repurchase Agreement | |||||||||
Fixed Income Clearing Corporation, 2.300% dated 12/29/23, due 01/02/24, repurchase price $2,514, collateralized by U.S. Treasury Note, 3.875%, due 12/31/27, valued at $2,564 | $2,514 | 2,514 | |||||||
Total Repurchase Agreement—1.0% (cost $2,514) | 2,514 | ||||||||
Total Investments—99.9% (cost $196,844) | 240,546 | ||||||||
Cash and other assets, less liabilities—0.1% | 200 | ||||||||
Net assets—100.0% | $ | 240,746 |
ADR = American Depository Receipt
* = Non-income producing security
† = U.S. listed foreign security
At December 31, 2023, the Fund’s Portfolio of Investments includes the following industry categories (as a percentage of long-term investments):
Industrials | 32.3 | % | ||
Information Technology | 21.8 | % | ||
Financials | 13.2 | % | ||
Consumer Discretionary | 11.1 | % | ||
Consumer Staples | 9.4 | % | ||
Health Care | 5.1 | % | ||
Communication Services | 2.7 | % | ||
Real Estate | 2.1 | % | ||
Energy | 1.5 | % | ||
Materials | 0.8 | % | ||
Total | 100.0 | % |
At December 31, 2023, the Fund’s Portfolio of Investments includes the following currency categories (as a percentage of long-term investments):
Japanese Yen | 18.0 | % | ||
Euro | 17.8 | % | ||
Swedish Krona | 9.9 | % | ||
British Pound Sterling | 8.6 | % | ||
Indian Rupee | 8.5 | % | ||
Canadian Dollar | 7.6 | % | ||
New Taiwan Dollar | 6.1 | % | ||
Mexican Peso | 5.8 | % | ||
Swiss Franc | 3.5 | % | ||
Brazilian Real | 3.4 | % | ||
Australian Dollar | 3.0 | % | ||
Norwegian Krone | 1.4 | % | ||
New Zealand Dollar | 1.3 | % | ||
South African Rand | 1.1 | % | ||
All Other Currencies | 4.0 | % | ||
Total | 100.0 | % |
See accompanying Notes to Financial Statements.
December 31, 2023 | William Blair Funds | 61 |
62 | Annual Report | December 31, 2023 |
Emerging Markets Leaders Fund
a chain of pharmacies, offering skin care, personal care, and cosmetics products in Brazil. The stock outperformed on strong fundamental performance as it continues to take market share and consolidates the fragmented Brazilian pharmacy market. Its operating leverage and cost efficiencies have continued to drive margin expansion and double-digit growth.
Within Information Technology, MediaTek was the strongest performer. MediaTek is a Taiwanese semiconductor company specializing in chips used in wireless communication and mobile devices. MediaTek also benefited from the easing destocking trend. We believe the company is at the end of the cyclical trough in terms of revenue growth, and management’s recently increased guidance of higher growth confirms that thesis. Additionally, improved pricing power alongside a less aggressive competitive backdrop is evidenced by resilient gross margins in the recent period.
Please refer to the Global Markets Review and Outlook relating to the Fund beginning on page 32.
December 31, 2023 | William Blair Funds | 63 |
Emerging Markets Leaders Fund
Performance Highlights (Unaudited)
Average Annual Total Returns through 12/31/2023 | ||||||||||||||||
1 Year | 3 Year | 5 Year | 10 Year | |||||||||||||
Class N | 5.85 | % | (10.29 | )% | 3.29 | % | 1.95 | % | ||||||||
Class I | 6.13 | (10.03 | ) | 3.57 | 2.25 | |||||||||||
Class R6 | 6.22 | (9.98 | ) | 3.63 | 2.30 | |||||||||||
MSCI Emerging Markets Index (net) | 9.83 | (5.08 | ) | 3.68 | 2.66 |
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are average annual total returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272, or visit our Web site at www.williamblairfunds.com. International investing involves special risk considerations, including currency fluctuations, lower liquidity, economic and political risk. These risks may be magnified when investing in emerging markets. From time to time, the investment adviser may waive fees or reimburse expenses for the Fund. Without these waivers/reimbursements, performance would be lower. Class N shares are not subject to a sales load. Class I shares are not subject to a sales load or distribution (Rule 12b-1) fees. Class R6 shares are not subject to a sales load, distribution (Rule 12b-1) fees, or sub-transfer agent fees.
The performance highlights and graph presented above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The Morgan Stanley Capital International (MSCI) Emerging Markets Index (net) is a free float-adjusted market-capitalization-weighted index that is designed to measure equity market performance of emerging markets. This index approximates the minimum possible dividend reinvestment by deducting for the highest possible withholding tax rates of those markets.
This report identifies the Fund’s investments on December 31, 2023. 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.
64 | Annual Report | December 31, 2023 |
Emerging Markets Leaders Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks | |||||||||
Emerging Asia—76.5% | |||||||||
China—20.5% | |||||||||
Airtac International Group (Machinery) | 148,000 | $ | 4,871 | ||||||
Alibaba Group Holding Ltd. (Broadline retail) | 710,528 | 6,879 | |||||||
ANTA Sports Products Ltd. (Textiles, apparel & luxury goods) | 243,000 | 2,357 | |||||||
Contemporary Amperex Technology Co. Ltd. (Electrical equipment) | 124,120 | 2,844 | |||||||
Kweichow Moutai Co. Ltd. (Beverages) | 32,159 | 7,790 | |||||||
Midea Group Co. Ltd. (Household durables) | 652,695 | 5,004 | |||||||
* | PDD Holdings, Inc.—ADR (Broadline retail) | 26,022 | 3,807 | ||||||
Shenzhen Inovance Technology Co. Ltd. (Machinery) | 337,800 | 2,993 | |||||||
Silergy Corp. (Semiconductors & semiconductor equipment) | 213,000 | 3,470 | |||||||
Tencent Holdings Ltd. (Interactive media & services) | 227,700 | 8,561 | |||||||
Zhangzhou Pientzehuang Pharmaceutical Co. Ltd. (Pharmaceuticals) | 96,600 | 3,281 | |||||||
51,857 | |||||||||
India—23.3% | |||||||||
Apollo Hospitals Enterprise Ltd. (Health care providers & services) | 32,669 | 2,241 | |||||||
Asian Paints Ltd. (Chemicals) | 75,186 | 3,067 | |||||||
Bajaj Finance Ltd. (Consumer finance) | 14,237 | 1,251 | |||||||
Britannia Industries Ltd. (Food products) | 35,065 | 2,250 | |||||||
Havells India Ltd. (Electrical equipment) | 136,668 | 2,246 | |||||||
HDFC Bank Ltd. (Banks) | 569,519 | 11,694 | |||||||
Hindustan Unilever Ltd. (Personal care products) | 75,665 | 2,418 | |||||||
Infosys Ltd. (IT services) | 213,866 | 3,965 | |||||||
* | InterGlobe Aviation Ltd. (Passenger airlines) | 160,698 | 5,707 | ||||||
Kotak Mahindra Bank Ltd. (Banks) | 172,385 | 3,944 | |||||||
Mahindra & Mahindra Ltd. (Automobiles) | 180,348 | 3,739 | |||||||
Pidilite Industries Ltd. (Chemicals) | 79,874 | 2,601 | |||||||
Reliance Industries Ltd. (Oil, gas & consumable fuels) | 279,028 | 8,675 | |||||||
Tata Consumer Products Ltd. (Food products) | 63,264 | 828 | |||||||
Titan Co. Ltd. (Textiles, apparel & luxury goods) | 49,952 | 2,213 | |||||||
Varun Beverages Ltd. (Beverages) | 155,720 | 2,315 | |||||||
59,154 | |||||||||
Indonesia—6.8% | |||||||||
Bank Central Asia Tbk. PT (Banks) | 16,232,800 | 9,910 | |||||||
Bank Rakyat Indonesia Persero Tbk. PT (Banks) | 13,109,900 | 4,875 | |||||||
Telkom Indonesia Persero Tbk. PT (Diversified telecommunication services) | 9,280,600 | 2,381 | |||||||
17,166 |
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Emerging Asia—(continued) | |||||||||
South Korea—8.7% | |||||||||
Samsung Electronics Co. Ltd. (Technology hardware, storage & peripherals) | 261,175 | $ | 15,919 | ||||||
SK Hynix, Inc. (Semiconductors & semiconductor equipment) | 56,655 | 6,225 | |||||||
22,144 | |||||||||
Taiwan—14.4% | |||||||||
Advantech Co. Ltd. (Technology hardware, storage & peripherals) | 173,000 | 2,097 | |||||||
ASPEED Technology, Inc. (Semiconductors & semiconductor equipment) | 17,000 | 1,728 | |||||||
eMemory Technology, Inc. (Semiconductors & semiconductor equipment) | 32,000 | 2,555 | |||||||
MediaTek, Inc. (Semiconductors & semiconductor equipment) | 204,000 | 6,747 | |||||||
Taiwan Semiconductor Manufacturing Co. Ltd.—ADR (Semiconductors & semiconductor equipment) | 196,639 | 20,450 | |||||||
Voltronic Power Technology Corp. (Electrical equipment) | 52,000 | 2,897 | |||||||
36,474 | |||||||||
Thailand—2.8% | |||||||||
Airports of Thailand PCL (Transportation infrastructure) | 1,935,300 | 3,388 | |||||||
Bangkok Dusit Medical Services PCL (Health care providers & services) | 4,546,900 | 3,697 | |||||||
7,085 | |||||||||
Emerging Latin America—20.2% | |||||||||
Argentina—1.6% | |||||||||
* | Globant SA (IT services)† | 17,046 | 4,057 | ||||||
Brazil—14.0% | |||||||||
B3 SA - Brasil Bolsa Balcao (Capital markets) | 1,320,600 | 3,956 | |||||||
Banco BTG Pactual SA (Capital markets) | 546,700 | 4,233 | |||||||
* | MercadoLibre, Inc. (Broadline retail) | 4,997 | 7,853 | ||||||
Raia Drogasil SA (Consumer staples distribution & retail) | 694,784 | 4,205 | |||||||
Rumo SA (Ground transportation) | 863,000 | 4,077 | |||||||
TOTVS SA (Software) | 746,000 | 5,174 | |||||||
WEG SA (Electrical equipment) | 808,600 | 6,144 | |||||||
35,642 | |||||||||
Mexico—4.6% | |||||||||
Grupo Aeroportuario del Pacifico SAB de CV (Transportation infrastructure) | 170,700 | 2,994 | |||||||
Grupo Financiero Banorte SAB de CV (Banks) | 265,400 | 2,674 | |||||||
Wal-Mart de Mexico SAB de CV (Consumer staples distribution & retail) | 1,426,700 | 5,998 | |||||||
11,666 |
See accompanying Notes to Financial Statements.
December 31, 2023 | William Blair Funds | 65 |
Emerging Markets Leaders Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Emerging Europe, Mid-East, Africa—4.6% | |||||||||
Saudi Arabia—2.4% | |||||||||
Saudi Arabian Oil Co. (Oil, gas & consumable fuels) | 696,856 | $ | 6,142 | ||||||
South Africa—0.8% | |||||||||
Capitec Bank Holdings Ltd. (Banks) | 18,068 | 2,001 | |||||||
Turkey—0.7% | |||||||||
BIM Birlesik Magazalar AS (Consumer staples distribution & retail) | 180,688 | 1,844 | |||||||
United Arab Emirates—0.7% | |||||||||
Abu Dhabi National Oil Co. for Distribution PJSC (Specialty retail) | 1,757,279 | 1,770 | |||||||
Asia—1.4% | |||||||||
Hong Kong—1.4% | |||||||||
AIA Group Ltd. (Insurance) | 397,400 | 3,463 | |||||||
Total Common Stocks—102.7% (cost $216,846) | 260,465 | ||||||||
Total Investments—102.7% (cost $216,846) | 260,465 | ||||||||
Liabilities, plus cash and other assets—(2.7)% | (6,880 | ) | |||||||
Net assets—100.0% | $ | 253,585 |
ADR = American Depository Receipt
* = Non-income producing security
† = U.S. listed foreign security
At December 31, 2023, the Fund’s Portfolio of Investments includes the following industry categories (as a percentage of long-term investments):
Information Technology | 27.8 | % | ||
Financials | 18.4 | % | ||
Industrials | 14.7 | % | ||
Consumer Discretionary | 12.9 | % | ||
Consumer Staples | 10.6 | % | ||
Energy | 5.7 | % | ||
Communication Services | 4.2 | % | ||
Health Care | 3.5 | % | ||
Materials | 2.2 | % | ||
Total | 100.0 | % |
At December 31, 2023, the Fund’s Portfolio of Investments includes the following currency categories (as a percentage of long-term investments):
Indian Rupee | 22.7 | % | ||
U.S. Dollar | 13.9 | % | ||
Brazilian Real | 10.7 | % | ||
New Taiwan Dollar | 9.3 | % | ||
South Korean Won | 8.5 | % | ||
Chinese Yuan Renminbi | 8.4 | % | ||
Hong Kong Dollar | 8.2 | % | ||
Indonesian Rupiah | 6.6 | % | ||
Mexican Peso | 4.5 | % | ||
South African Rand | 3.1 | % | ||
Thai Baht | 2.7 | % | ||
All Other Currencies | 1.4 | % | ||
Total | 100.0 | % |
See accompanying Notes to Financial Statements.
66 | Annual Report | December 31, 2023 |
December 31, 2023 | William Blair Funds | 67 |
Emerging Markets Growth Fund
Performance Highlights (Unaudited)
Average Annual Total Returns through 12/31/2023 | ||||||||||||||||
1 Year | 3 Year | 5 Year | 10 Year | |||||||||||||
Class N | 9.99 | % | (8.94 | )% | 6.28 | % | 3.48 | % | ||||||||
Class I | 10.23 | (8.71 | ) | 6.55 | 3.74 | |||||||||||
Class R6 | 10.26 | (8.65 | ) | 6.62 | 3.83 | |||||||||||
MSCI Emerging Markets IMI (net) | 11.67 | (3.71 | ) | 4.45 | 3.00 |
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are average annual total returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272, or visit our Web site at www.williamblairfunds.com. From time to time, the investment adviser may waive fees or reimburse expenses for the Fund. Without these waivers/reimbursements, performance would be lower. International investing involves special risk considerations, including currency fluctuations, lower liquidity, economic and political risk. These risks may be magnified when investing in emerging markets. Class N shares are not subject to a sales load. Class I shares are not subject to a sales load or distribution (Rule 12b-1) fees. Class R6 shares are not subject to a sales load, distribution (Rule 12b-1) fees, or sub-transfer agent fees.
The performance highlights and graph presented above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The Morgan Stanley Capital International (MSCI) Emerging Markets Investable Market Index (IMI) (net) is a free float-adjusted market capitalization weighted index that is designed to measure the equity market performance of emerging markets. This index approximates the minimum possible dividend reinvestment by deducting for the highest possible withholding tax rates of those markets.
This report identifies the Fund’s investments on December 31, 2023. 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.
68 | Annual Report | December 31, 2023 |
Emerging Markets Growth Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks | |||||||||
Emerging Asia—77.3% | |||||||||
China—13.3% | |||||||||
Airtac International Group (Machinery) | 230,852 | $ | 7,597 | ||||||
ANTA Sports Products Ltd. (Textiles, apparel & luxury goods) | 231,000 | 2,241 | |||||||
Huaming Power Equipment Co. Ltd. (Machinery) | 519,600 | 1,030 | |||||||
Huaneng Lancang River Hydropower, Inc. (Independent power & renewable electricity producers) | 2,422,600 | 2,934 | |||||||
Kweichow Moutai Co. Ltd. (Beverages) | 66,574 | 16,126 | |||||||
NetEase, Inc. (Entertainment) | 859,500 | 15,476 | |||||||
* | PDD Holdings, Inc.—ADR (Broadline retail) | 141,147 | 20,651 | ||||||
Proya Cosmetics Co. Ltd. (Personal care products) | 236,488 | 3,299 | |||||||
Shenzhen Inovance Technology Co. Ltd. (Machinery) | 245,163 | 2,172 | |||||||
Tencent Holdings Ltd. (Interactive media & services) | 879,160 | 33,056 | |||||||
Wuliangye Yibin Co. Ltd. (Beverages) | 108,399 | 2,135 | |||||||
Zhangzhou Pientzehuang Pharmaceutical Co. Ltd. (Pharmaceuticals) | 85,206 | 2,894 | |||||||
109,611 | |||||||||
India—27.1% | |||||||||
ABB India Ltd. (Electrical equipment) | 112,773 | 6,330 | |||||||
APL Apollo Tubes Ltd. (Metals & mining) | 189,079 | 3,490 | |||||||
Apollo Hospitals Enterprise Ltd. (Health care providers & services) | 77,010 | 5,282 | |||||||
Asian Paints Ltd. (Chemicals) | 74,608 | 3,044 | |||||||
Astral Ltd. (Building products) | 96,831 | 2,224 | |||||||
Bajaj Finance Ltd. (Consumer finance) | 91,060 | 8,005 | |||||||
Bharat Electronics Ltd. (Aerospace & defense) | 2,677,109 | 5,903 | |||||||
Britannia Industries Ltd. (Food products) | 50,686 | 3,253 | |||||||
Central Depository Services India Ltd. (Capital markets) | 119,895 | 2,631 | |||||||
CG Power & Industrial Solutions Ltd. (Electrical equipment) | 672,313 | 3,652 | |||||||
Cholamandalam Investment & Finance Co. Ltd. (Consumer finance) | 205,145 | 3,106 | |||||||
Coforge Ltd. (IT services) | 43,782 | 3,307 | |||||||
Cummins India Ltd. (Machinery) | 124,767 | 2,949 | |||||||
Dixon Technologies India Ltd. (Household durables) | 69,268 | 5,456 | |||||||
Escorts Kubota Ltd. (Machinery) | 60,030 | 2,156 | |||||||
* | Godrej Properties Ltd. (Real estate management & development) | 108,676 | 2,621 | ||||||
Havells India Ltd. (Electrical equipment) | 124,220 | 2,042 | |||||||
HDFC Bank Ltd. (Banks) | 1,073,338 | 22,039 | |||||||
HDFC Life Insurance Co. Ltd. (Insurance) | 249,338 | 1,936 | |||||||
Indian Hotels Co. Ltd. (Hotels, restaurants & leisure) | 847,809 | 4,464 | |||||||
* | InterGlobe Aviation Ltd. (Passenger airlines) | 80,561 | 2,861 |
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Emerging Asia—(continued) | |||||||||
India—(continued) | |||||||||
Jindal Stainless Ltd. (Metals & mining) | 181,213 | $ | 1,241 | ||||||
Kajaria Ceramics Ltd. (Building products) | 142,536 | 2,240 | |||||||
* | Kaynes Technology India Ltd. (Electronic equipment, instruments & components) | 65,035 | 2,040 | ||||||
KEI Industries Ltd. (Electrical equipment) | 126,739 | 4,944 | |||||||
KPIT Technologies Ltd. (Software) | 335,367 | 6,127 | |||||||
Macrotech Developers Ltd. (Real estate management & development) | 309,713 | 3,807 | |||||||
Mahindra & Mahindra Ltd. (Automobiles) | 196,361 | 4,071 | |||||||
Max Healthcare Institute Ltd. (Health care providers & services) | 494,406 | 4,076 | |||||||
Motherson Sumi Wiring India Ltd. (Automobile components) | 2,699,323 | 2,001 | |||||||
Nestle India Ltd. (Food products) | 16,866 | 5,400 | |||||||
NTPC Ltd. (Independent power & renewable electricity producers) | 3,181,948 | 11,873 | |||||||
Oberoi Realty Ltd. (Real estate management & development) | 152,496 | 2,615 | |||||||
Pidilite Industries Ltd. (Chemicals) | 66,068 | 2,152 | |||||||
Polycab India Ltd. (Electrical equipment) | 71,745 | 4,742 | |||||||
Reliance Industries Ltd. (Oil, gas & consumable fuels) | 629,285 | 19,564 | |||||||
Tata Consultancy Services Ltd. (IT services) | 49,967 | 2,282 | |||||||
Tata Consumer Products Ltd. (Food products) | 272,258 | 3,563 | |||||||
Tata Motors Ltd. (Automobiles) | 472,215 | 4,423 | |||||||
Titagarh Rail System Ltd. (Machinery) | 287,427 | 3,605 | |||||||
Titan Co. Ltd. (Textiles, apparel & luxury goods) | 170,737 | 7,563 | |||||||
Trent Ltd. (Specialty retail) | 164,166 | 6,019 | |||||||
Tube Investments of India Ltd. (Automobile components) | 88,631 | 3,770 | |||||||
TVS Motor Co. Ltd. (Automobiles) | 122,730 | 2,991 | |||||||
UNO Minda Ltd. (Automobile components) | 564,828 | 4,677 | |||||||
Varun Beverages Ltd. (Beverages) | 674,678 | 10,029 | |||||||
222,566 | |||||||||
Indonesia—5.4% | |||||||||
Bank Central Asia Tbk. PT (Banks) | 38,219,695 | 23,333 | |||||||
Bank Rakyat Indonesia Persero Tbk. PT (Banks) | 51,020,251 | 18,971 | |||||||
Mitra Adiperkasa Tbk. PT (Broadline retail) | 15,557,100 | 1,809 | |||||||
44,113 | |||||||||
Philippines—1.1% | |||||||||
BDO Unibank, Inc. (Banks) | 2,189,854 | 5,161 | |||||||
International Container Terminal Services, Inc. (Transportation infrastructure) | 855,950 | 3,815 | |||||||
8,976 |
See accompanying Notes to Financial Statements.
December 31, 2023 | William Blair Funds | 69 |
Emerging Markets Growth Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Emerging Asia—(continued) | |||||||||
South Korea—8.7% | |||||||||
JYP Entertainment Corp. (Entertainment) | 28,472 | $ | 2,239 | ||||||
Orion Corp. (Food products) | 22,577 | 2,035 | |||||||
* | Samsung Biologics Co. Ltd. (Life sciences tools & services) | 3,555 | 2,098 | ||||||
Samsung Electronics Co. Ltd. (Technology hardware, storage & peripherals) | 784,398 | 47,811 | |||||||
SK Hynix, Inc. (Semiconductors & semiconductor equipment) | 157,565 | 17,311 | |||||||
71,494 | |||||||||
Taiwan—20.6% | |||||||||
Accton Technology Corp. (Communications equipment) | 363,000 | 6,186 | |||||||
Advantech Co. Ltd. (Technology hardware, storage & peripherals) | 216,409 | 2,623 | |||||||
Alchip Technologies Ltd. (Semiconductors & semiconductor equipment) | 118,000 | 12,592 | |||||||
ASMedia Technology, Inc. (Semiconductors & semiconductor equipment) | 56,000 | 3,312 | |||||||
ASPEED Technology, Inc. (Semiconductors & semiconductor equipment) | 63,300 | 6,435 | |||||||
Delta Electronics, Inc. (Electronic equipment, instruments & components) | 631,000 | 6,445 | |||||||
E.Sun Financial Holding Co. Ltd. (Banks) | 3,576,723 | 3,007 | |||||||
Elite Material Co. Ltd. (Electronic equipment, instruments & components) | 541,000 | 6,734 | |||||||
eMemory Technology, Inc. (Semiconductors & semiconductor equipment) | 58,000 | 4,630 | |||||||
Faraday Technology Corp. (Semiconductors & semiconductor equipment) | 209,000 | 2,431 | |||||||
Global Unichip Corp. (Semiconductors & semiconductor equipment) | 96,000 | 5,443 | |||||||
Innodisk Corp. (Technology hardware, storage & peripherals) | 192,000 | 1,952 | |||||||
Lotes Co. Ltd. (Electronic equipment, instruments & components) | 152,132 | 5,304 | |||||||
MediaTek, Inc. (Semiconductors & semiconductor equipment) | 419,000 | 13,857 | |||||||
Sinbon Electronics Co. Ltd. (Electronic equipment, instruments & components) | 249,000 | 2,426 | |||||||
Taiwan Semiconductor Manufacturing Co. Ltd. (Semiconductors & semiconductor equipment) | 598,000 | 11,554 | |||||||
Taiwan Semiconductor Manufacturing Co. Ltd.—ADR (Semiconductors & semiconductor equipment) | 563,558 | 58,610 | |||||||
Tripod Technology Corp. (Electronic equipment, instruments & components) | 572,000 | 3,634 | |||||||
Unimicron Technology Corp. (Electronic equipment, instruments & components) | 803,000 | 4,605 | |||||||
Voltronic Power Technology Corp. (Electrical equipment) | 35,586 | 1,983 | |||||||
Wiwynn Corp. (Technology hardware, storage & peripherals) | 103,000 | 6,125 | |||||||
169,888 |
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Emerging Asia—(continued) | |||||||||
Thailand—1.1% | |||||||||
Bangkok Dusit Medical Services PCL (Health care providers & services) | 3,364,100 | $ | 2,735 | ||||||
Bumrungrad Hospital PCL (Health care providers & services) | 574,000 | 3,733 | |||||||
Central Pattana PCL (Real estate management & development) | 1,322,600 | 2,713 | |||||||
9,181 | |||||||||
Emerging Latin America—14.9% | |||||||||
Argentina—0.5% | |||||||||
* | Globant SA (IT services)† | 16,033 | 3,816 | ||||||
Brazil—8.5% | |||||||||
Banco BTG Pactual SA (Capital markets) | 861,500 | 6,670 | |||||||
Itau Unibanco Holding SA—ADR (Banks) | 1,273,457 | 8,850 | |||||||
Localiza Rent a Car SA (Ground transportation) | 226,600 | 2,967 | |||||||
* | MercadoLibre, Inc. (Broadline retail) | 14,985 | 23,550 | ||||||
Multiplan Empreendimentos Imobiliarios SA (Real estate management & development) | 428,100 | 2,505 | |||||||
* | NU Holdings Ltd. (Banks)† | 343,243 | 2,859 | ||||||
Patria Investments Ltd. (Capital markets)† | 120,472 | 1,868 | |||||||
Raia Drogasil SA (Consumer staples distribution & retail) | 1,005,388 | 6,085 | |||||||
Rumo SA (Ground transportation) | 808,300 | 3,819 | |||||||
TOTVS SA (Software) | 715,100 | 4,960 | |||||||
Vinci Partners Investments Ltd. (Capital markets)† | 155,512 | 1,703 | |||||||
WEG SA (Electrical equipment) | 503,541 | 3,826 | |||||||
69,662 | |||||||||
Mexico—5.9% | |||||||||
* | Alsea SAB de CV (Hotels, restaurants & leisure) | 507,600 | 1,924 | ||||||
Arca Continental SAB de CV (Beverages) | 657,400 | 7,161 | |||||||
Corp. Inmobiliaria Vesta SAB de CV (Real estate management & development) | 853,600 | 3,385 | |||||||
Corp. Inmobiliaria Vesta SAB de CV—ADR (Real estate management & development) | 22,220 | 880 | |||||||
Fomento Economico Mexicano SAB de CV—ADR (Beverages) | 97,908 | 12,762 | |||||||
Grupo Aeroportuario del Centro Norte SAB de CV (Transportation infrastructure) | 217,300 | 2,298 | |||||||
Grupo Financiero Banorte SAB de CV (Banks) | 846,400 | 8,528 | |||||||
Prologis Property Mexico SA de CV (Industrial REITs) | 1,005,900 | 4,769 | |||||||
Wal-Mart de Mexico SAB de CV (Consumer staples distribution & retail) | 1,656,500 | 6,964 | |||||||
48,671 |
See accompanying Notes to Financial Statements.
70 | Annual Report | December 31, 2023 |
Emerging Markets Growth Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Emerging Europe, Mid-East, Africa—6.5% | |||||||||
Poland—0.6% | |||||||||
* | Dino Polska SA (Consumer staples distribution & retail) | 44,226 | $ | 5,178 | |||||
Saudi Arabia—3.5% | |||||||||
Aldrees Petroleum & Transport Services Co. (Oil, gas & consumable fuels) | 63,589 | 2,998 | |||||||
Alinma Bank (Banks) | 252,283 | 2,607 | |||||||
Arabian Contracting Services Co. (Media) | 14,561 | 920 | |||||||
Arabian Internet & Communications Services Co. (IT services) | 32,774 | 3,026 | |||||||
Bupa Arabia for Cooperative Insurance Co. (Insurance) | 47,528 | �� | 2,702 | ||||||
Dr Sulaiman Al Habib Medical Services Group Co. (Health care providers & services) | 43,555 | 3,296 | |||||||
Elm Co. (IT services) | 25,536 | 5,550 | |||||||
Leejam Sports Co. JSC (Hotels, restaurants & leisure) | 63,623 | 3,431 | |||||||
Riyadh Cables Group Co. (Electrical equipment) | 98,258 | 2,416 | |||||||
Saudia Dairy & Foodstuff Co. (Food products) | 22,074 | 1,960 | |||||||
28,906 | |||||||||
South Africa—0.9% | |||||||||
Bid Corp. Ltd. (Consumer staples distribution & retail) | 107,705 | 2,512 | |||||||
Bidvest Group Ltd. (Industrial conglomerates) | 153,185 | 2,113 | |||||||
Clicks Group Ltd. (Consumer staples distribution & retail) | 129,252 | 2,301 | |||||||
6,926 | |||||||||
Turkey—0.3% | |||||||||
BIM Birlesik Magazalar AS (Consumer staples distribution & retail) | 258,186 | 2,635 | |||||||
United Arab Emirates—1.2% | |||||||||
Emaar Properties PJSC (Real estate management & development) | 2,618,926 | 5,648 | |||||||
Emirates Central Cooling Systems Corp. (Water utilities) | 3,917,247 | 1,770 | |||||||
Salik Co. PJSC (Transportation infrastructure) | 3,124,481 | 2,646 | |||||||
10,064 | |||||||||
Asia—1.4% | |||||||||
Hong Kong—1.4% | |||||||||
AIA Group Ltd. (Insurance) | 1,345,800 | 11,728 | |||||||
Total Common Stocks—100.1% (cost $662,749) | 823,415 |
Issuer | Shares or Principal Amount | Value | |||||||
Rights | |||||||||
Emerging Latin America—0.0% | |||||||||
Brazil—0.0% | |||||||||
* | Localiza Rent a Car SA, Expiring 2/5/24 (Ground transportation) | 813 | $ | 3 | |||||
Total Rights—0.0% (cost $0) | 3 | ||||||||
Repurchase Agreement | |||||||||
Fixed Income Clearing Corporation, 2.300% dated 12/29/23, due 01/02/24, repurchase price $9,422, collateralized by U.S. Treasury Note, 3.875%, due 12/31/27, valued at $9,608 | $9,419 | 9,419 | |||||||
Total Repurchase Agreement—1.1% (cost $9,419) | 9,419 | ||||||||
Total Investments—101.2% (cost $672,168) | 832,837 | ||||||||
Liabilities, plus cash and other assets—(1.2)% | (9,996 | ) | |||||||
Net assets—100.0% | $ | 822,841 |
ADR = American Depository Receipt
REIT = Real Estate Investment Trust
* = Non-income producing security
† = U.S. listed foreign security
See accompanying Notes to Financial Statements.
December 31, 2023 | William Blair Funds | 71 |
Emerging Markets Growth Fund
Portfolio of Investments, December 31, 2023
At December 31, 2023, the Fund’s Portfolio of Investments includes the following industry categories (as a percentage of long-term investments):
Information Technology | 31.8 | % | ||
Financials | 16.5 | % | ||
Consumer Discretionary | 12.0 | % | ||
Consumer Staples | 11.3 | % | ||
Industrials | 9.8 | % | ||
Communication Services | 6.3 | % | ||
Real Estate | 3.5 | % | ||
Health Care | 2.9 | % | ||
Energy | 2.7 | % | ||
Utilities | 2.0 | % | ||
Materials | 1.2 | % | ||
Total | 100.0 | % |
At December 31, 2023, the Fund’s Portfolio of Investments includes the following currency categories (as a percentage of long-term investments):
Indian Rupee | 27.0 | % | ||
U.S. Dollar | 16.5 | % | ||
New Taiwan Dollar | 14.4 | % | ||
South Korean Won | 8.7 | % | ||
Hong Kong Dollar | 7.6 | % | ||
Indonesian Rupiah | 5.4 | % | ||
South African Rand | 4.4 | % | ||
Mexican Peso | 4.3 | % | ||
Brazilian Real | 3.7 | % | ||
Chinese Yuan Renminbi | 3.7 | % | ||
UAE Dirham | 1.2 | % | ||
Thai Baht | 1.1 | % | ||
Philippine Peso | 1.1 | % | ||
All Other Currencies | 0.9 | % | ||
Total | 100.0 | % |
See accompanying Notes to Financial Statements.
72 | Annual Report | December 31, 2023 |
December 31, 2023 | William Blair Funds | 73 |
Emerging Markets ex China Growth Fund
Bank Central Asia is the highest quality bank in Indonesia with a strong deposit franchise and benefits from a structural growth opportunity underpinned by positive demographics and financial under penetration. The bank continued to deliver healthy loan growth in line with management 2023 guidance and very high credit quality. The stock has lagged amid expectations of lowering interest rates and earnings coupled with high valuation. Within Energy, Reliance Industries detracted from relative performance due to its diversified business model, lower exposure to energy commodities and elevated capital expenditures over the past years, driven by large telecom spends which should be reduced in the coming year. We believe Reliance’s transformation from an asset-heavy, cyclical energy business to a more diversified, end-consumer businesses with a large and expanding total addressable market will continue to drive strong growth and returns over the long term, while the legacy energy 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.
74 | Annual Report | December 31, 2023 |
Emerging Markets ex China Growth Fund
Performance Highlights (Unaudited)
Average Annual Total Returns through 12/31/2023
1 Year | Since Inception(a) | |||||||
Class I | 24.75 | % | 11.86 | % | ||||
Class R6 | 24.75 | 11.95 | ||||||
MSCI Emerging Markets ex-China IMI (net) | 21.64 | 13.53 |
(a) | Since inception is for the period from July 29, 2022 (Commencement of Operations) to December 31, 2023. |
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 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 ex-China IMI Index (net) is a free float-adjusted market capitalization index that is designed to measure equity market performance of emerging markets excluding China. This series approximates the minimum possible dividend reinvestment.
This report identifies the Fund’s investments on December 31, 2023. These holdings are subject to change. Not all stocks in the Fund performed the same, nor is there any guarantee that these stocks will perform as well in the future. Market forecasts provided in this report may not necessarily come to pass.
Sector Diversification (Unaudited)
The sector diversification shown is based on the total long-term securities.
December 31, 2023 | William Blair Funds | 75 |
Emerging Markets ex China Growth Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks | |||||||||
Emerging Asia—70.3% | |||||||||
India—27.8% | |||||||||
ABB India Ltd. (Electrical equipment) | 2,864 | $ | 161 | ||||||
APL Apollo Tubes Ltd. (Metals & mining) | 5,599 | 103 | |||||||
Apollo Hospitals Enterprise Ltd. (Health care providers & services) | 2,492 | 171 | |||||||
Asian Paints Ltd. (Chemicals) | 2,749 | 112 | |||||||
AU Small Finance Bank Ltd. (Banks) | 13,937 | 131 | |||||||
Bajaj Finance Ltd. (Consumer finance) | 1,446 | 127 | |||||||
Bharat Electronics Ltd. (Aerospace & defense) | 65,784 | 145 | |||||||
Bikaji Foods International Ltd. (Food products) | 15,071 | 99 | |||||||
Central Depository Services India Ltd. (Capital markets) | 3,408 | 75 | |||||||
CG Power & Industrial Solutions Ltd. (Electrical equipment) | 20,298 | 110 | |||||||
Cholamandalam Investment & Finance Co. Ltd. (Consumer finance) | 7,434 | 113 | |||||||
Coforge Ltd. (IT services) | 1,174 | 89 | |||||||
Computer Age Management Services Ltd. (Professional services) | 2,098 | 67 | |||||||
Craftsman Automation Ltd. (Machinery) | 1,146 | 74 | |||||||
Cummins India Ltd. (Machinery) | 4,425 | 105 | |||||||
Dixon Technologies India Ltd. (Household durables) | 2,073 | 163 | |||||||
Havells India Ltd. (Electrical equipment) | 5,907 | 97 | |||||||
HDFC Bank Ltd. (Banks) | 26,675 | 548 | |||||||
Home First Finance Co. India Ltd. (Financial services) | 6,251 | 70 | |||||||
Indian Hotels Co. Ltd. (Hotels, restaurants & leisure) | 29,291 | 154 | |||||||
* | InterGlobe Aviation Ltd. (Passenger airlines) | 4,640 | 165 | ||||||
Jindal Stainless Ltd. (Metals & mining) | 20,824 | 143 | |||||||
* | Kaynes Technology India Ltd. (Electronic equipment, instruments & components) | 2,097 | 66 | ||||||
KEI Industries Ltd. (Electrical equipment) | 4,883 | 190 | |||||||
KPIT Technologies Ltd. (Software) | 12,351 | 226 | |||||||
Macrotech Developers Ltd. (Real estate management & development) | 9,587 | 118 | |||||||
Mahindra & Mahindra Ltd. (Automobiles) | 5,363 | 111 | |||||||
Max Healthcare Institute Ltd. (Health care providers & services) | 18,394 | 152 | |||||||
Nestle India Ltd. (Food products) | 530 | 170 | |||||||
NTPC Ltd. (Independent power & renewable electricity producers) | 67,524 | 252 | |||||||
Polycab India Ltd. (Electrical equipment) | 2,084 | 138 | |||||||
Reliance Industries Ltd. (Oil, gas & consumable fuels) | 5,372 | 167 | |||||||
Tata Elxsi Ltd. (Software) | 1,189 | 125 | |||||||
Tata Motors Ltd. (Automobiles) | 12,220 | 114 | |||||||
Titagarh Rail System Ltd. (Machinery) | 16,538 | 207 | |||||||
Titan Co. Ltd. (Textiles, apparel & luxury goods) | 3,881 | 172 |
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Emerging Asia—(continued) | |||||||||
India—(continued) | |||||||||
Trent Ltd. (Specialty retail) | 6,759 | $ | 248 | ||||||
* | Triveni Turbine Ltd. (Electrical equipment) | 19,962 | 101 | ||||||
Tube Investments of India Ltd. (Automobile components) | 2,785 | 118 | |||||||
UNO Minda Ltd. (Automobile components) | 17,678 | 146 | |||||||
Varun Beverages Ltd. (Beverages) | 18,149 | 270 | |||||||
6,113 | |||||||||
Indonesia—5.4% | |||||||||
Bank Central Asia Tbk. PT (Banks) | 942,400 | 575 | |||||||
Bank Rakyat Indonesia Persero Tbk. PT (Banks) | 1,089,100 | 405 | |||||||
Indofood CBP Sukses Makmur Tbk. PT (Food products) | 102,400 | 70 | |||||||
Mitra Adiperkasa Tbk. PT (Broadline retail) | 1,141,200 | 133 | |||||||
1,183 | |||||||||
Philippines—1.3% | |||||||||
BDO Unibank, Inc. (Banks) | 67,518 | 159 | |||||||
International Container Terminal Services, Inc. (Transportation infrastructure) | 29,360 | 131 | |||||||
290 | |||||||||
South Korea—9.2% | |||||||||
JYP Entertainment Corp. (Entertainment) | 1,024 | 81 | |||||||
NAVER Corp. (Interactive media & services) | 458 | 80 | |||||||
Samsung Electronics Co. Ltd. (Technology hardware, storage & peripherals) | 24,615 | 1,500 | |||||||
SK Hynix, Inc. (Semiconductors & semiconductor equipment) | 3,344 | 367 | |||||||
2,028 | |||||||||
Taiwan—25.6% | |||||||||
Accton Technology Corp. (Communications equipment) | 16,000 | 273 | |||||||
Alchip Technologies Ltd. (Semiconductors & semiconductor equipment) | 2,500 | 267 | |||||||
ASMedia Technology, Inc. (Semiconductors & semiconductor equipment) | 2,000 | 118 | |||||||
ASPEED Technology, Inc. (Semiconductors & semiconductor equipment) | 2,100 | 213 | |||||||
Chroma ATE, Inc. (Electronic equipment, instruments & components) | 15,000 | 104 | |||||||
Elite Material Co. Ltd. (Electronic equipment, instruments & components) | 8,000 | 100 | |||||||
eMemory Technology, Inc. (Semiconductors & semiconductor equipment) | 3,300 | 263 | |||||||
Faraday Technology Corp. (Semiconductors & semiconductor equipment) | 9,000 | 105 | |||||||
Global Unichip Corp. (Semiconductors & semiconductor equipment) | 3,100 | 176 |
See accompanying Notes to Financial Statements.
76 | Annual Report | December 31, 2023 |
Emerging Markets ex China Growth Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Emerging Asia—(continued) | |||||||||
Taiwan—(continued) | |||||||||
Innodisk Corp. (Technology hardware, storage & peripherals) | 9,900 | $ | 101 | ||||||
Lotes Co. Ltd. (Electronic equipment, instruments & components) | 4,103 | 143 | |||||||
MediaTek, Inc. (Semiconductors & semiconductor equipment) | 9,000 | 298 | |||||||
Parade Technologies Ltd. (Semiconductors & semiconductor equipment) | 3,000 | 117 | |||||||
Sinbon Electronics Co. Ltd. (Electronic equipment, instruments & components) | 12,000 | 117 | |||||||
Taiwan Semiconductor Manufacturing Co. Ltd. (Semiconductors & semiconductor equipment) | 136,000 | 2,628 | |||||||
Tripod Technology Corp. (Electronic equipment, instruments & components) | 19,400 | 123 | |||||||
Unimicron Technology Corp. (Electronic equipment, instruments & components) | 17,500 | 100 | |||||||
Voltronic Power Technology Corp. (Electrical equipment) | 2,600 | 145 | |||||||
Wiwynn Corp. (Technology hardware, storage & peripherals) | 4,000 | 238 | |||||||
5,629 | |||||||||
Thailand—1.0% | |||||||||
Bangkok Dusit Medical Services PCL (Health care providers & services) | 120,300 | 98 | |||||||
Bumrungrad Hospital PCL (Health care providers & services) | 20,500 | 133 | |||||||
231 | |||||||||
Emerging Latin America—18.6% | |||||||||
Argentina—1.3% | |||||||||
Arcos Dorados Holdings, Inc. (Hotels, restaurants & leisure)† | 11,648 | 147 | |||||||
* | Globant SA (IT services)† | 529 | 126 | ||||||
273 | |||||||||
Brazil—10.4% | |||||||||
B3 SA - Brasil Bolsa Balcao (Capital markets) | 43,000 | 129 | |||||||
Banco BTG Pactual SA (Capital markets) | 29,400 | 228 | |||||||
Itau Unibanco Holding SA—ADR (Banks) | 41,112 | 286 | |||||||
Localiza Rent a Car SA (Ground transportation) | 6,000 | 78 | |||||||
* | MercadoLibre, Inc. (Broadline retail) | 401 | 630 | ||||||
Multiplan Empreendimentos Imobiliarios SA (Real estate management & development) | 27,900 | 163 | |||||||
Raia Drogasil SA (Consumer staples distribution & retail) | 29,716 | 180 | |||||||
Rumo SA (Ground transportation) | 32,200 | 152 | |||||||
TOTVS SA (Software) | 27,900 | 193 |
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Emerging Latin America—(continued) | |||||||||
Brazil—(continued) | |||||||||
Vivara Participacoes SA (Textiles, apparel & luxury goods) | 15,700 | $ | 111 | ||||||
WEG SA (Electrical equipment) | 19,300 | 147 | |||||||
2,297 | |||||||||
Mexico—6.9% | |||||||||
* | Alsea SAB de CV (Hotels, restaurants & leisure) | 40,800 | 155 | ||||||
Arca Continental SAB de CV (Beverages) | 10,600 | 115 | |||||||
Corp. Inmobiliaria Vesta SAB de CV (Real estate management & development) | 71,600 | 284 | |||||||
Fomento Economico Mexicano SAB de CV—ADR (Beverages) | 2,041 | 266 | |||||||
Grupo Aeroportuario del Centro Norte SAB de CV (Transportation infrastructure) | 9,200 | 97 | |||||||
Grupo Financiero Banorte SAB de CV (Banks) | 16,400 | 165 | |||||||
Qualitas Controladora SAB de CV (Insurance) | 21,500 | 218 | |||||||
Wal-Mart de Mexico SAB de CV (Consumer staples distribution & retail) | 50,100 | 211 | |||||||
1,511 | |||||||||
Emerging Europe, Mid-East, Africa—10.8% | |||||||||
Greece—0.4% | |||||||||
JUMBO SA (Specialty retail) | 3,072 | 85 | |||||||
Lithuania—0.5% | |||||||||
Baltic Classifieds Group PLC (Interactive media & services) | 33,782 | 102 | |||||||
Poland—0.6% | |||||||||
* | Dino Polska SA (Consumer staples distribution & retail) | 1,192 | 140 | ||||||
Saudi Arabia—6.3% | |||||||||
Al Hammadi Holding (Health care providers & services) | 4,781 | 76 | |||||||
Aldrees Petroleum & Transport Services Co. (Oil, gas & consumable fuels) | 3,463 | 163 | |||||||
Arabian Contracting Services Co. (Media) | 1,914 | 121 | |||||||
Arabian Internet & Communications Services Co. (IT services) | 974 | 90 | |||||||
Bupa Arabia for Cooperative Insurance Co. (Insurance) | 1,955 | 111 | |||||||
Dr Sulaiman Al Habib Medical Services Group Co. (Health care providers & services) | 2,262 | 171 | |||||||
Elm Co. (IT services) | 677 | 147 | |||||||
Leejam Sports Co. JSC (Hotels, restaurants & leisure) | 3,315 | 179 | |||||||
National Medical Care Co. (Health care providers & services) | 1,771 | 82 |
See accompanying Notes to Financial Statements.
December 31, 2023 | William Blair Funds | 77 |
Emerging Markets ex China Growth Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Shares or Principal Amount | Value | |||||||
Common Stocks—(continued) | |||||||||
Emerging Europe, Mid-East, Africa—(continued) | |||||||||
Saudi Arabia—(continued) | |||||||||
Riyadh Cables Group Co. (Electrical equipment) | 4,739 | $ | 117 | ||||||
Saudia Dairy & Foodstuff Co. (Food products) | 1,528 | 136 | |||||||
1,393 | |||||||||
South Africa—0.9% | |||||||||
Bidvest Group Ltd. (Industrial conglomerates) | 7,855 | 108 | |||||||
Naspers Ltd. (Broadline retail) | 505 | 87 | |||||||
195 | |||||||||
Turkey—0.4% | |||||||||
BIM Birlesik Magazalar AS (Consumer staples distribution & retail) | 8,270 | 84 | |||||||
United Arab Emirates—1.7% | |||||||||
Air Arabia PJSC (Passenger airlines) | 125,010 | 96 | |||||||
Emaar Properties PJSC (Real estate management & development) | 75,672 | 163 | |||||||
Salik Co. PJSC (Transportation infrastructure) | 148,968 | 126 | |||||||
385 | |||||||||
Total Common Stocks—99.7% (cost $17,587) | 21,939 | ||||||||
Rights | |||||||||
Emerging Latin America—0.0% | |||||||||
Brazil—0.0% | |||||||||
* | Localiza Rent a Car SA, Expiring 2/5/24 (Ground transportation) | 21 | —(a | ) | |||||
Total Rights—0.0% (cost $0) | —(a | ) | |||||||
Repurchase Agreement | |||||||||
Fixed Income Clearing Corporation, 2.300% dated 12/29/23, due 01/02/24, repurchase price $222, collateralized by U.S. Treasury Note, 0.500%, due 05/31/27, valued at $226 | $222 | 222 | |||||||
Total Repurchase Agreement—1.0% (cost $222) | 222 | ||||||||
Total Investments—100.7% (cost $17,809) | 22,161 | ||||||||
Liabilities, plus cash and other assets—(0.7)% | (151 | ) | |||||||
Net assets—100.0% | $ | 22,010 |
ADR = American Depository Receipt
* = Non-income producing security
† = U.S. listed foreign security
(a) Amount is less than the minimum amount disclosed.
At December 31, 2023, the Fund’s Portfolio of Investments includes the following industry categories (as a percentage of long-term investments):
Information Technology | 38.5 | % | ||
Financials | 15.2 | % | ||
Industrials | 12.6 | % | ||
Consumer Discretionary | 12.6 | % | ||
Consumer Staples | 7.9 | % | ||
Health Care | 4.0 | % | ||
Real Estate | 3.3 | % | ||
Communication Services | 1.7 | % | ||
Materials | 1.6 | % | ||
Energy | 1.5 | % | ||
Utilities | 1.1 | % | ||
Total | 100.0 | % |
At December 31, 2023, the Fund’s Portfolio of Investments includes the following currency categories (as a percentage of long-term investments):
Indian Rupee | 27.9 | % | ||
New Taiwan Dollar | 25.7 | % | ||
South Korean Won | 9.2 | % | ||
South African Rand | 7.2 | % | ||
U.S. Dollar | 6.6 | % | ||
Brazilian Real | 6.3 | % | ||
Mexican Peso | 5.7 | % | ||
Indonesian Rupiah | 5.4 | % | ||
UAE Dirham | 1.8 | % | ||
Philippine Peso | 1.3 | % | ||
Thai Baht | 1.0 | % | ||
All Other Currencies | 1.9 | % | ||
Total | 100.0 | % |
See accompanying Notes to Financial Statements.
78 | Annual Report | December 31, 2023 |
December 31, 2023 | William Blair Funds | 79 |
Emerging Markets Small Cap Growth Fund
Performance Highlights (Unaudited)
Average Annual Total Returns through 12/31/2023
1 Year | 3 Year | 5 Year | 10 Year | |||||||||||||
Class N | 21.93 | % | 0.33 | % | 9.96 | % | 5.73 | % | ||||||||
Class I | 22.25 | 0.59 | 10.23 | 6.02 | ||||||||||||
Class R6 | 22.37 | 0.65 | 10.30 | 6.09 | ||||||||||||
MSCI Emerging Markets Small Cap Index (net) | 23.92 | 6.45 | 9.92 | 5.34 |
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are average annual total returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272, or visit our Web site at www.williamblairfunds.com. From time to time, the investment adviser may waive fees or reimburse expenses for the Fund. Without these waivers/reimbursements, performance would be lower. International investing involves special risk considerations, including currency fluctuations, lower liquidity, economic and political risk. These risks may be magnified when investing in emerging markets. Smaller capitalization stocks are also more sensitive to purchase/sale transactions and changes in the issuer’s financial condition. Class N shares are not subject to a sales load. Class I shares are not subject to a sales load or distribution (Rule 12b-1) fees. Class R6 shares are not subject to a sales load, distribution (Rule 12b-1) fees, or sub-transfer agent fees.
The performance highlights and graph presented above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The Morgan Stanley Capital International (MSCI) Emerging Markets Small Cap Index (net) is a free float-adjusted market capitalization index that is designed to measure the equity market performance of emerging markets. This index approximates the minimum possible dividend reinvestment by deducting for the highest possible withholding tax rates of those markets.
This report identifies the Fund’s investments on December 31, 2023. 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.
80 | Annual Report | December 31, 2023 |
Emerging Markets Small Cap Growth Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks | |||||||||
Emerging Asia—64.2% | |||||||||
China—5.2% | |||||||||
Airtac International Group (Machinery) | 108,158 | $ | 3,560 | ||||||
Huaming Power Equipment Co. Ltd. (Machinery) | 580,800 | 1,151 | |||||||
Huaneng Lancang River Hydropower, Inc. (Independent power & renewable electricity producers) | 3,251,112 | 3,938 | |||||||
Proya Cosmetics Co. Ltd. (Personal care products) | 378,388 | 5,278 | |||||||
Shenzhen Envicool Technology Co. Ltd. (Machinery) | 747,600 | 2,883 | |||||||
Yankershop Food Co. Ltd. (Food products) | 191,200 | 1,864 | |||||||
Zhejiang Shuanghuan Driveline Co. Ltd. (Automobile components) | 414,100 | 1,512 | |||||||
20,186 | |||||||||
India—38.3% | |||||||||
ABB India Ltd. (Electrical equipment) | 85,582 | 4,804 | |||||||
* | Amber Enterprises India Ltd. (Household durables) | 66,006 | 2,481 | ||||||
APL Apollo Tubes Ltd. (Metals & mining) | 227,022 | 4,191 | |||||||
Astral Ltd. (Building products) | 141,711 | 3,254 | |||||||
AU Small Finance Bank Ltd. (Banks) | 192,086 | 1,812 | |||||||
Bikaji Foods International Ltd. (Food products) | 252,860 | 1,662 | |||||||
Cera Sanitaryware Ltd. (Building products) | 11,715 | 1,105 | |||||||
CG Power & Industrial Solutions Ltd. (Electrical equipment) | 1,092,799 | 5,936 | |||||||
* | Chalet Hotels Ltd. (Hotels, restaurants & leisure) | 143,009 | 1,200 | ||||||
Cholamandalam Investment & Finance Co. Ltd. (Consumer finance) | 182,531 | 2,764 | |||||||
Coforge Ltd. (IT services) | 66,665 | 5,035 | |||||||
Craftsman Automation Ltd. (Machinery) | 31,100 | 2,016 | |||||||
Dixon Technologies India Ltd. (Household durables) | 97,353 | 7,668 | |||||||
Escorts, Ltd. (Machinery) | 32,516 | 1,168 | |||||||
* | Godrej Properties Ltd. (Real estate management & development) | 217,763 | 5,252 | ||||||
Home First Finance Co. India Ltd. (Financial services) | 152,018 | 1,702 | |||||||
JB Chemicals & Pharmaceuticals Ltd. (Pharmaceuticals) | 74,445 | 1,449 | |||||||
Jindal Stainless Ltd. (Metals & mining) | 768,374 | 5,263 | |||||||
* | Kaynes Technology India Ltd. (Electronic equipment, instruments & components) | 50,340 | 1,579 | ||||||
KEC International Ltd. (Construction & engineering) | 56,863 | 401 | |||||||
KEI Industries Ltd. (Electrical equipment) | 240,478 | 9,381 | |||||||
KPIT Technologies Ltd. (Software) | 336,028 | 6,139 | |||||||
* | Lemon Tree Hotels Ltd. (Hotels, restaurants & leisure) | 1,437,963 | 2,073 | ||||||
Macrotech Developers Ltd. (Real estate management & development) | 599,568 | 7,371 |
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Emerging Asia—(continued) | |||||||||
India—(continued) | |||||||||
Max Healthcare Institute Ltd. (Health care providers & services) | 379,004 | $ | 3,125 | ||||||
Metro Brands Ltd. (Specialty retail) | 183,069 | 2,781 | |||||||
Narayana Hrudayalaya Ltd. (Health care providers & services) | 145,293 | 2,095 | |||||||
Oberoi Realty Ltd. (Real estate management & development) | 264,327 | 4,533 | |||||||
* | PG Electroplast Ltd. (Electronic equipment, instruments & components) | 63,377 | 1,805 | ||||||
Polycab India Ltd. (Electrical equipment) | 144,608 | 9,558 | |||||||
Radico Khaitan Ltd. (Beverages) | 151,310 | 3,022 | |||||||
Ramkrishna Forgings Ltd. (Metals & mining) | 472,555 | 4,134 | |||||||
Solar Industries India Ltd. (Chemicals) | 22,247 | 1,801 | |||||||
Sundram Fasteners Ltd. (Automobile components) | 126,533 | 1,897 | |||||||
Titagarh Rail System Ltd. (Machinery) | 480,322 | 6,024 | |||||||
Trent Ltd. (Specialty retail) | 139,493 | 5,114 | |||||||
* | Triveni Turbine Ltd. (Electrical equipment) | 551,564 | 2,802 | ||||||
Tube Investments of India Ltd. (Automobile components) | 49,633 | 2,111 | |||||||
UNO Minda Ltd. (Automobile components) | 390,665 | 3,235 | |||||||
Varun Beverages Ltd. (Beverages) | 494,975 | 7,358 | |||||||
Venus Pipes & Tubes Ltd. (Metals & mining) | 125,403 | 2,114 | |||||||
149,215 | |||||||||
Indonesia—3.3% | |||||||||
Bank Negara Indonesia Persero Tbk. PT (Banks) | 18,699,500 | 6,528 | |||||||
Map Aktif Adiperkasa PT (Specialty retail) | 8,009,100 | 426 | |||||||
Mitra Adiperkasa Tbk. PT (Broadline retail) | 50,231,900 | 5,840 | |||||||
12,794 | |||||||||
Philippines—0.7% | |||||||||
International Container Terminal Services, Inc. (Transportation infrastructure) | 582,650 | 2,597 | |||||||
South Korea—0.2% | |||||||||
* | LEENO Industrial, Inc. (Semiconductors & semiconductor equipment) | 3,253 | 512 | ||||||
Orion Corp. (Food products) | 4,441 | 400 | |||||||
912 | |||||||||
Taiwan—16.3% | |||||||||
Alchip Technologies Ltd. (Semiconductors & semiconductor equipment) | 44,000 | 4,695 | |||||||
ASMedia Technology, Inc. (Semiconductors & semiconductor equipment) | 83,000 | 4,909 | |||||||
ASPEED Technology, Inc. (Semiconductors & semiconductor equipment) | 57,900 | 5,886 |
See accompanying Notes to Financial Statements.
December 31, 2023 | William Blair Funds | 81 |
Emerging Markets Small Cap Growth Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Emerging Asia—(continued) | |||||||||
Taiwan—(continued) | |||||||||
Elite Material Co. Ltd. (Electronic equipment, instruments & components) | 165,000 | $ | 2,054 | ||||||
eMemory Technology, Inc. (Semiconductors & semiconductor equipment) | 37,000 | 2,954 | |||||||
Faraday Technology Corp. (Semiconductors & semiconductor equipment) | 438,000 | 5,095 | |||||||
Global Unichip Corporation (Semiconductors & semiconductor equipment) | 116,000 | 6,577 | |||||||
Great Tree Pharmacy Co. Ltd. (Consumer staples distribution & retail) | 316,160 | 3,600 | |||||||
Innodisk Corp. (Technology hardware, storage & peripherals) | 268,000 | 2,725 | |||||||
Lotes Co. Ltd. (Electronic equipment, instruments & components) | 121,669 | 4,242 | |||||||
Nanya Technology Corp. (Semiconductors & semiconductor equipment) | 1,531,000 | 3,891 | |||||||
Sinbon Electronics Co. Ltd. (Electronic equipment, instruments & components) | 301,000 | 2,932 | |||||||
Tripod Technology Corp. (Electronic equipment, instruments & components) | 664,000 | 4,219 | |||||||
Voltronic Power Technology Corp. (Electrical equipment) | 60,507 | 3,371 | |||||||
Wiwynn Corp. (Technology hardware, storage & peripherals) | 108,000 | 6,422 | |||||||
63,572 | |||||||||
Thailand—0.2% | |||||||||
Bumrungrad Hospital PCL (Health care providers & services) | 147,300 | 958 | |||||||
Emerging Latin America—22.7% | |||||||||
Argentina—1.6% | |||||||||
Arcos Dorados Holdings, Inc. (Hotels, restaurants & leisure)† | 483,057 | 6,130 | |||||||
Brazil—13.0% | |||||||||
* | Azul SA–ADR (Passenger airlines) | 187,200 | 1,814 | ||||||
Companhia Paranaense de Energia (Electric utilities) | 1,399,000 | 2,733 | |||||||
Cury Construtora e Incorporadora SA (Household durables) | 1,241,500 | 4,598 | |||||||
Cyrela Brazil Realty SA Empreendimentos e Participacoes (Household durables) | 1,946,500 | 9,649 | |||||||
Grupo SBF SA (Specialty retail) | 404,700 | 977 | |||||||
Iguatemi SA (Real estate management & development) | 578,000 | 2,901 | |||||||
Multiplan Empreendimentos Imobiliarios SA (Real estate management & development) | 1,491,600 | 8,727 | |||||||
* | Oncoclinicas do Brasil Servicos Medicos SA (Health care providers & services) | 1,010,000 | 2,703 | ||||||
Smartfit Escola de Ginastica e Danca SA (Hotels, restaurants & leisure) | 800,800 | 4,291 | |||||||
TOTVS SA (Software) | 1,036,400 | 7,188 | |||||||
Vivara Participacoes SA (Textiles, apparel & luxury goods) | 723,500 | 5,101 | |||||||
50,682 |
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Emerging Latin America—(continued) | |||||||||
Mexico—8.1% | |||||||||
* | Alsea SAB de CV (Hotels, restaurants & leisure) | 1,495,300 | $ | 5,667 | |||||
Banco del Bajio SA (Banks) | 962,000 | 3,212 | |||||||
Corp. Inmobiliaria Vesta SAB de CV (Real estate management & development) | 1,582,200 | 6,274 | |||||||
Corp. Inmobiliaria Vesta SAB de CV–ADR (Real estate management & development) | 14,970 | 593 | |||||||
Grupo Aeroportuario del Centro Norte SAB de CV (Transportation infrastructure) | 48,299 | 511 | |||||||
Prologis Property Mexico SA de CV (Industrial REITs) | 1,598,100 | 7,576 | |||||||
Qualitas Controladora SAB de CV (Insurance) | 479,200 | 4,851 | |||||||
Regional SAB de CV (Banks) | 298,900 | 2,859 | |||||||
31,543 | |||||||||
Emerging Europe, Mid-East—13.3% | |||||||||
Georgia—0.1% | |||||||||
Bank of Georgia Group PLC (Banks) | 5,517 | 280 | |||||||
Greece—0.7% | |||||||||
JUMBO SA (Specialty retail) | 102,064 | 2,830 | |||||||
Kazakhstan—1.1% | |||||||||
Kaspi.KZ JSC–GDR (Consumer finance) | 48,611 | 4,472 | |||||||
Poland—1.4% | |||||||||
* | Dino Polska SA (Consumer staples distribution & retail) | 45,906 | 5,375 | ||||||
Saudi Arabia—7.8% | |||||||||
Al Hammadi Holding (Health care providers & services) | 87,277 | 1,390 | |||||||
Aldrees Petroleum & Transport Services Co. (Oil, gas & consumable fuels) | 80,152 | 3,779 | |||||||
Arabian Internet & Communications Services Co. (IT services) | 10,846 | 1,001 | |||||||
Bupa Arabia for Cooperative Insurance Co. (Insurance) | 47,772 | 2,716 | |||||||
Dallah Healthcare Co. (Health care providers & services) | 49,813 | 2,279 | |||||||
Elm Co. (IT services) | 23,509 | 5,109 | |||||||
Leejam Sports Co. JSC (Hotels, restaurants & leisure) | 70,147 | 3,782 | |||||||
National Medical Care Co. (Health care providers & services) | 44,592 | 2,074 | |||||||
Riyadh Cables Group Co. (Electrical equipment) | 145,366 | 3,574 | |||||||
Saudia Dairy & Foodstuff Co. (Food products) | 53,297 | 4,733 | |||||||
30,437 |
See accompanying Notes to Financial Statements.
82 | Annual Report | December 31, 2023 |
Emerging Markets Small Cap Growth Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Shares or Principal Amount | Value | |||||||
Common Stocks—(continued) | |||||||||
Emerging Europe, Mid-East—(continued) | |||||||||
United Arab Emirates—2.2% | |||||||||
Air Arabia PJSC (Passenger airlines) | 4,476,589 | $ | 3,437 | ||||||
Emirates Central Cooling Systems Corp. (Water utilities) | 5,309,534 | 2,400 | |||||||
Salik Co. PJSC (Transportation infrastructure) | 3,306,646 | 2,800 | |||||||
8,637 | |||||||||
Total Common Stocks–100.2% (cost $300,409) | 390,620 | ||||||||
Repurchase Agreement | |||||||||
Fixed Income Clearing Corporation, 2.300% dated 12/29/23, due 01/02/24, repurchase price $5,673, collateralized by U.S. Treasury Bond, 4.375%, due 05/15/41, valued at $5,785 | $5,671 | 5,671 | |||||||
Total Repurchase Agreement–1.5% (cost $5,671) | 5,671 | ||||||||
Total Investments–101.7% (cost $306,080) | 396,291 | ||||||||
Liabilities, plus cash and other assets—(1.7)% | (6,579 | ) | |||||||
Net assets—100.0% | $ | 389,712 |
ADR = American Depository Receipt
GDR = Global Depository Receipt
REIT = Real Estate Investment Trust
* = Non-income producing security
† = U.S. listed foreign security
At December 31, 2023, the Fund’s Portfolio of Investments includes the following industry categories (as a percentage of long-term investments):
Information Technology | 21.7 | % | ||
Consumer Discretionary | 20.3 | % | ||
Industrials | 18.5 | % | ||
Real Estate | 11.1 | % | ||
Consumer Staples | 8.5 | % | ||
Financials | 8.0 | % | ||
Materials | 4.5 | % | ||
Health Care | 4.1 | % | ||
Utilities | 2.3 | % | ||
Energy | 1.0 | % | ||
Total | 100.0 | % |
At December 31, 2023, the Fund’s Portfolio of Investments includes the following currency categories (as a percentage of long-term investments):
Indian Rupee | 38.2 | % | ||
New Taiwan Dollar | 17.2 | % | ||
Brazilian Real | 12.5 | % | ||
Mexican Peso | 7.9 | % | ||
South African Rand | 7.8 | % | ||
Chinese Yuan Renminbi | 4.3 | % | ||
U.S. Dollar | 3.3 | % | ||
Indonesian Rupiah | 3.3 | % | ||
UAE Dirham | 2.2 | % | ||
Polish Zloty | 1.4 | % | ||
All Other Currencies | 1.9 | % | ||
Total | 100.0 | % |
See accompanying Notes to Financial Statements.
December 31, 2023 | William Blair Funds | 83 |
84 | Annual Report | December 31, 2023 |
China Growth Fund
Performance Highlights (Unaudited)
Average Annual Total Return 12/31/2023 | ||||||||
1 Year | Since Inception(a) | |||||||
Class I | (24.28 | )% | (26.26 | )% | ||||
Class R6 | (24.38 | ) | (26.32 | ) | ||||
MSCI China All Shares Index (net) | (11.53 | ) | (16.59 | ) |
(a) | Since inception is for the period from August 27, 2021 (Commencement of Operations) to December 31, 2023. |
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are average annual total returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272, or visit our Web site at www.williamblairfunds.com. From time to time, the investment adviser may waive fees or reimburse expenses for the Fund. Without these waivers/reimbursements, performance would be lower. International investing involves special risk considerations, including currency fluctuations, lower liquidity, economic and political risk. These risks may be magnified when investing in emerging markets. Smaller capitalization stocks are also more sensitive to purchase/sale transactions and changes in the issuer’s financial condition. Class I shares are not subject to a sales load or distribution (Rule 12b-1) fees. Class R6 shares are not subject to a sales load, distribution (Rule 12b-1) fees, or sub-transfer agent fees.
The performance highlights and graph presented above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The MSCI China All Shares Index (net) captures large and mid-cap representation across China A-shares, B-shares, H-shares, Red-chips, P-chips, and foreign listings. The index aims to reflect the opportunity set of China share classes listed in Hong Kong, Shanghai, Shenzhen, and outside of China. The Index is unmanaged, does not incur fees or expenses, and cannot be invested in directly.
This report identifies the Fund’s investments on December 31, 2023. These holdings are subject to change. Not all stocks in the Fund performed the same, nor is there any guarantee that these stocks will perform as well in the future. Market forecasts provided in this report may not necessarily come to pass.
Sector Diversification (Unaudited)
The sector diversification shown is based on the total long-term securities.
December 31, 2023 | William Blair Funds | 85 |
China Growth Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Shares | Value | |||||||
Common Stcocks | |||||||||
Emerging Asia—93.6% | |||||||||
China—93.6% | |||||||||
Aier Eye Hospital Group Co. Ltd. (Health care providers & services) | 16,248 | $ | 36 | ||||||
Airtac International Group (Machinery) | 2,000 | 66 | |||||||
Alibaba Group Holding Ltd. (Broadline retail) | 7,100 | 69 | |||||||
Bank of Chengdu Co. Ltd. (Banks) | 11,900 | 19 | |||||||
Bank of Ningbo Co. Ltd. (Banks) | 7,090 | 20 | |||||||
Beijing Kingsoft Office Software, Inc. (Software) | 649 | 29 | |||||||
Beijing Roborock Technology Co. Ltd. (Household durables) | 444 | 18 | |||||||
China Tourism Group Duty Free Corp. Ltd. (Specialty retail) | 1,400 | 16 | |||||||
Chongqing Zhifei Biological Products Co. Ltd. (Biotechnology) | 2,600 | 22 | |||||||
Contemporary Amperex Technology Co. Ltd. (Electrical equipment) | 2,340 | 54 | |||||||
East Money Information Co. Ltd. (Capital markets) | 16,244 | 32 | |||||||
Eastroc Beverage Group Co. Ltd. (Beverages) | 1,000 | 26 | |||||||
Estun Automation Co. Ltd. (Machinery) | 6,500 | 17 | |||||||
Fuyao Glass Industry Group Co. Ltd. (Automobile components) | 5,600 | 27 | |||||||
* | Giant Biogene Holding Co. Ltd. (Personal care products) | 5,400 | 25 | ||||||
Hisense Home Appliances Group Co. Ltd. (Household durables) | 8,000 | 17 | |||||||
Huaming Power Equipment Co. Ltd. (Machinery) | 11,400 | 23 | |||||||
Huaneng Lancang River Hydropower, Inc. (Independent power & renewable electricity producers) | 50,900 | 62 | |||||||
Hundsun Technologies, Inc. (Software) | 4,100 | 17 | |||||||
Inner Mongolia Yili Industrial Group Co. Ltd. (Food products) | 3,900 | 15 | |||||||
Jiangsu Hengli Hydraulic Co. Ltd. (Machinery) | 1,800 | 14 | |||||||
* | Kuaishou Technology (Interactive media & services) | 3,300 | 22 | ||||||
Kweichow Moutai Co. Ltd. (Beverages) | 600 | 145 | |||||||
Maxscend Microelectronics Co. Ltd. (Electronic equipment, instruments & components) | 1,200 | 24 | |||||||
* | Meituan (Hotels, restaurants & leisure) | 2,510 | 26 | ||||||
Midea Group Co. Ltd. (Household durables) | 3,900 | 30 | |||||||
MINISO Group Holding Ltd. (Broadline retail) | 2,200 | 11 | |||||||
NAURA Technology Group Co. Ltd. (Semiconductors & semiconductor equipment) | 1,800 | 62 | |||||||
NetEase, Inc. (Entertainment) | 6,300 | 113 | |||||||
* | PDD Holdings, Inc.–ADR (Broadline retail) | 553 | 81 |
Issuer | Shares | Value | |||||||
Common Stocks—(continued) | |||||||||
Emerging Asia—(continued) | |||||||||
China—(continued) | |||||||||
Proya Cosmetics Co. Ltd. (Personal care products) | 1,588 | $ | 22 | ||||||
Shenzhen Inovance Technology Co. Ltd. (Machinery) | 3,500 | 31 | |||||||
Shenzhen Mindray Bio-Medical Electronics Co. Ltd. (Health care equipment & supplies) | 600 | 24 | |||||||
Silergy Corp. (Semiconductors & semiconductor equipment) | 3,900 | 64 | |||||||
Sunresin New Materials Co. Ltd. (Chemicals) | 2,200 | 16 | |||||||
SUPCON Technology Co. Ltd. (Electronic equipment, instruments & components) | 4,125 | 26 | |||||||
Tencent Holdings Ltd. (Interactive media & services) | 4,900 | 184 | |||||||
Topsports International Holdings Ltd. (Specialty retail) | 18,000 | 14 | |||||||
Weichai Power Co. Ltd. (Machinery) | 27,000 | 45 | |||||||
Will Semiconductor Co. Ltd. Shanghai (Semiconductors & semiconductor equipment) | 1,600 | 24 | |||||||
Wuliangye Yibin Co. Ltd. (Beverages) | 2,200 | 43 | |||||||
Zhangzhou Pientzehuang Pharmaceutical Co. Ltd. (Pharmaceuticals) | 1,100 | 37 | |||||||
Zhejiang Jingsheng Mechanical & Electrical Co. Ltd. (Semiconductors & semiconductor equipment) | 4,300 | 27 | |||||||
Zhejiang Shuanghuan Driveline Co. Ltd. (Automobile components) | 3,900 | 14 | |||||||
Zhongji Innolight Co. Ltd. (Communications equipment) | 1,200 | 19 | |||||||
1,728 | |||||||||
Asia—4.0% | |||||||||
Hong Kong—4.0% | |||||||||
AIA Group Ltd. (Insurance) | 6,200 | 54 | |||||||
Hong Kong Exchanges & Clearing Ltd. (Capital markets) | 600 | 21 | |||||||
75 | |||||||||
Total Common Stocks—97.6% (cost $2,026) | 1,803 | ||||||||
Total Investments—97.6% (cost $2,026) | 1,803 | ||||||||
Cash and other assets, less liabilities—2.4% | 44 | ||||||||
Net assets—100.0% | $ | 1,847 |
ADR = American Depository Receipt
* = Non-income producing security
See accompanying Notes to Financial Statements.
86 | Annual Report | December 31, 2023 |
China Growth Fund
Portfolio of Investments, December 31, 2023
At December 31, 2023, the Fund’s Portfolio of Investments includes the following industry categories (as a percentage of long-term investments):
Consumer Discretionary | 17.9 | % | ||
Communication Services | 17.8 | % | ||
Information Technology | 16.1 | % | ||
Consumer Staples | 15.3 | % | ||
Industrials | 13.8 | % | ||
Financials | 8.1 | % | ||
Health Care | 6.7 | % | ||
Utilities | 3.4 | % | ||
Materials | 0.9 | % | ||
Total | 100.0 | % |
At December 31, 2023, the Fund’s Portfolio of Investments includes the following currency categories (as a percentage of long-term investments):
Chinese Yuan Renminbi | 53.5 | % | ||
Hong Kong Dollar | 34.8 | % | ||
New Taiwan Dollar | 7.2 | % | ||
U.S. Dollar | 4.5 | % | ||
Total | 100.0 | % |
See accompanying Notes to Financial Statements.
December 31, 2023 | William Blair Funds | 87 |
Emerging Markets Debt Market Review and Outlook
Emerging markets (“EM”) debt performed strongly in 2023 amid supportive market sentiment driven by improving prospects for global economic growth, inflation, interest rates and global liquidity conditions. Investors became increasingly optimistic about the trajectory of global policy rates as the global disinflationary process gained momentum. Further evidence of a global economic soft landing also contributed to the positive sentiment, supporting the performance of asset prices during the year. Improving economic activity in China and resilience growth dynamics in EM countries also helped underpin sentiment towards EM debt.
In this environment, the credit spread of the J.P. Morgan Emerging Markets Bond Index Global Diversified (EMBIGD) tightened by 68 basis points (“bps”), to 384 bps, producing a positive total return of 11.09% for the full year.
We anticipate a strong 2024 for the asset class on the back of a significant improvement in the global macroeconomic backdrop, characterized by still-resilient economic growth, lower global rates, and improving global liquidity conditions.
While it appears likely that the global economy will continue to gradually decelerate, we believe growth should remain close to its long-term potential. In such an environment, we believe central banks in advanced economies have likely reached the end of their interest rate hiking cycles, with monetary policy easing becoming a predominant theme in 2024.
Many EM central banks have already started cutting policy rates, and we expect this process to continue into 2024. Recall that in the global fight against inflation, EM central banks hiked interest rates sooner and faster than their counterparts in the developed world. As a result of such a timely and assertive policy reaction, inflation started to decrease sooner and faster in EM countries.
In our opinion, easier global monetary conditions will be one of the factors supporting economic growth in EM in 2024.
In this context, we believe credit fundamentals should remain well supported in most EM countries. We expect real gross domestic product (“GDP”) growth for our investment universe to be 3.5% in 2024, only marginally lower than in 2023. We also expect stable fiscal and debt dynamics. In our opinion, the budget-balance deficit and total government debt should remain relatively stable at approximately 5.4% and 58.6% of GDP, respectively. From an external account perspective, we expect a basic balance (current account plus foreign direct investments) surplus of approximately 1% of GDP in 2024.
We also believe market technical conditions should gradually improve as developed market central banks approach the end of their monetary-tightening cycles. We anticipate inflows to dedicated EM debt portfolios in 2024 as investors look for opportunities to increase interest-rate duration exposure to potentially benefit from attractive real and nominal yields. And, while we do expect a pickup in activity in the primary bond market, we believe net debt issuance should remain in negative territory (in both the sovereign and corporate credit spaces) as issuers seek alternative sources of funding. High investor cash levels, defensive positioning, and multi-year low foreign ownership of EM local bond markets should also add to a more constructive technical picture in 2024, in our opinion.
Importantly, we believe EM debt valuations continue to overcompensate investors for credit risks, currency and local rate risks, and volatility, and currently offer attractive value to investors with a medium- to long-term horizon and a willingness to tolerate a period of higher volatility.
EM debt credit spreads appear compelling on both an absolute and relative basis, with current levels remaining wider than their historical levels. While EM sovereign high-grade credit spreads appear unattractive, high-yield credit spreads appear compelling, particularly relative to U.S. corporate high-yield levels. In the distressed credit space, we believe current prices continue to overestimate the probability of credit default and underestimating potential restructuring and recovery values.
All in all, we anticipate a benign global macroeconomic backdrop and solid EM credit fundamentals underpinning a positive outlook for EM debt portfolios in 2024.
88 | Annual Report | December 31, 2023 |
December 31, 2023 | William Blair Funds | 89 |
Emerging Markets Debt Fund
In medium-risk countries, the top contributors to relative performance were positions in Dominican Republic, Jordan, and Romania. Conversely, the top detractors from relative performance were positions in Costa Rica, Armenia, and Guatemala.
In the Dominican Republic, outperformance was the result of our investment in local currency instruments, which outperformed U.S.-dollar-denominated bonds. In July we participated in a new Dominican Republic local currency issuance that rose more than 5% on the first day of trading, which helped performance.
In Jordan, we have benefited from an underweight position as investors became concerned about the secondary impact of the Gaza conflict on Jordan’s economy. Although Jordan continues to enjoy a strong relationship with the IMF and is on track to deliver strong fiscal consolidation, it remains unclear how the regional conflicts will impact the country in 2024, and sentiment has weakened in line with this uncertainty.
In Romania, we benefited from our exclusive positioning in the long end of the curve. This positioning was assisted by a strong rally in euro- and U.S.-dollar denominated yields, optimism around domestic fiscal consolidation, and a stronger growth path (stemming from the fact that the central bank looks set to cut interest rates sharply in 2024 following a drop in inflation).
In Costa Rica, our overweight position in the short end of the curve led to underperformance as longer-duration bonds outperformed.
In Armenia, our overweight position at the beginning of the quarter detracted from performance as geopolitical tensions with Azerbaijan continue to weigh on investor sentiment.
In Guatemala, our overweight position was impacted by volatility created by political instability in the country. Political noise has increased following President Juan José Arevalo’s win in the August elections, as some branches of government have taken an aggressive stance toward Arevalo’s Semilla party, raising some concerns about the stability of the transition period.
In low-risk countries, the top contributors to relative performance were positions in China, Saudi Arabia, and United Arab Emirates. Conversely, the top detractors from relative performance were positions in Jamaica, Bermuda, and India.
In China, corporate credit positions contributed positively to our performance in 2023. Positions across Financials, Utilities, and Information Technology performed positively as improving Chinese economic activity supported investor sentiment during the year.
In Saudi Arabia and United Arab Emirates, underweight positions in long-dated securities contributed to performance given these countries’ high sensitivity to rising U.S. Treasury yields during the year. A corporate position in a Saudi real estate company also contributed to performance.
As for Jamaica, it outperformed in 2023. The country has been on a consistently improving fiscal trajectory since engaging in an IMF program early last decade. Fiscal and debt dynamics improved, and Jamaica has not needed to issue securities in international capital markets over the past years. Consequently, Jamaica now has shorter-maturity bonds and thus less sensitivity to fluctuations in interest rates. The strong fundamental trajectory and shorter duration helped Jamaica outperform during the quarter. However, we do not have a position in Jamaica because we think valuations are too tight, and the underweight hurt our performance during the year.
Our overweight position in Bermuda led to underperformance. We were overweight bonds in Bermuda because we preferred valuations and fundamentals there relative to those of other low-risk sovereign credit. Bermuda has similar valuations to Peru and Chile, but a stronger fundamental trajectory with less institutional uncertainty.
In India, our exposure to local currency supranational bonds detracted from performance as the Indian rupee depreciated against the U.S. dollar, in line with broad U.S. dollar strength on the back of robust U.S. economic data. Despite declining core inflation in India, headline inflation increased due to higher food prices, contributing to underperformance in local currency supranational bonds.
Please refer to the Emerging Markets Debt Review and Outlook relating to the Fund on page 88.
90 | Annual Report | December 31, 2023 |
Emerging Markets Debt Fund
Performance Highlights (Unaudited)
Average Annual Total Return 12/31/2023 | ||||||||
1 Year | Since Inception(a) | |||||||
Class I | 13.41 | % | (2.79 | )% | ||||
Class R6 | 13.48 | (2.75 | ) | |||||
JPMorgan EMBI Global Diversified | 11.09 | (3.51 | ) |
(a) | Since inception is for the period from May 25, 2021 (Commencement of Operations) to December 31, 2023. |
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are average annual total returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272, or visit our Web site at www.williamblairfunds.com. From time to time, the investment adviser may waive fees or reimburse expenses for the Fund. Without these waivers/reimbursements, performance would be lower. Class I shares are not subject to a sales load or distribution (Rule 12b-1) fees. Class R6 shares are not subject to a sales load, distribution (Rule 12b-1) fees, or sub-transfer agent fees.
The performance highlights and graph presented above do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares.
The JP Morgan Emerging Markets Bond Index (EMBI) Global Diversified tracks the total return of U.S.-dollar denominated debt instruments issued by sovereign and quasi-sovereign entities.
This report identifies the Fund’s investments on December 31, 2023. These holdings are subject to change. Not all investments in the Fund performed the same, nor is there any guarantee that these investments will perform as well in the future. Market forecasts provided in this report may not necessarily come to pass.
Sector Diversification (Unaudited)
The sector diversification shown is based on the total investments.
December 31, 2023 | William Blair Funds | 91 |
Emerging Markets Debt Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Principal Amount | Value | |||||||
Foreign Government Bonds—63.1% | |||||||||
Angola—2.1% | |||||||||
Angolan Government International Bond, 9.125%, due 11/26/49 | $ | 1,400 | $ | 1,143 | |||||
Argentina—1.5% | |||||||||
Argentine Government International Bond, | |||||||||
0.750%, due 7/9/30 (a) | 1,030 | 411 | |||||||
3.500%, due 7/9/41 (a) | 785 | 266 | |||||||
3.750%, due 1/9/38 (a) | EUR | 320 | 120 | ||||||
797 | |||||||||
Azerbaijan—0.3% | |||||||||
Republic of Azerbaijan International Bond, 3.500%, due 9/1/32 | $ | 200 | 173 | ||||||
Bahamas—0.3% | |||||||||
Bahamas Government International Bond, 6.000%, due 11/21/28 | 200 | 176 | |||||||
Bahrain—2.2% | |||||||||
Bahrain Government International Bond, | |||||||||
5.250%, due 1/25/33 | 200 | 178 | |||||||
6.250%, due 1/25/51 | 300 | 247 | |||||||
7.000%, due 1/26/26 | 200 | 204 | |||||||
7.000%, due 10/12/28 | 500 | 520 | |||||||
1,149 | |||||||||
Benin—0.4% | |||||||||
Benin Government International Bond, 6.875%, due 1/19/52 | EUR | 250 | 217 | ||||||
Bermuda—0.6% | |||||||||
Bermuda Government International Bond, 3.375%, due 8/20/50 | $ | 460 | 321 | ||||||
Brazil—1.5% | |||||||||
Brazilian Government International Bond, 4.750%, due 1/14/50 | 480 | 369 | |||||||
Brazil Notas do Tesouro Nacional Serie F, | |||||||||
10.000%, due 1/1/25 | BRL | 560 | 115 | ||||||
10.000%, due 1/1/33 | 1,610 | 325 | |||||||
809 | |||||||||
Chile—0.5% | |||||||||
Chile Government International Bond, 3.250%, due 9/21/71 | $ | 400 | 267 | ||||||
Colombia—2.2% | |||||||||
Colombia Government International Bond, | |||||||||
3.250%, due 4/22/32 | 200 | 159 | |||||||
4.125%, due 2/22/42 | 330 | 235 | |||||||
4.125%, due 5/15/51 | 300 | 199 | |||||||
5.000%, due 6/15/45 | 740 | 571 | |||||||
1,164 | |||||||||
Costa Rica—0.6% | |||||||||
Costa Rica Government International Bond, 4.375%, due 4/30/25 | 340 | 336 | |||||||
Dominican Republic—1.9% | |||||||||
Dominican Republic International Bond, | |||||||||
4.875%, due 9/23/32 | 230 | 209 | |||||||
5.300%, due 1/21/41 | 250 | 216 | |||||||
5.875%, due 1/30/60 | 310 | 268 | |||||||
11.250%, due 9/15/35 (b) | DOP | 18,000 | 332 | ||||||
1,025 |
Issuer | Principal Amount | Value | |||||||
Foreign Government Bonds—(continued) | |||||||||
Ecuador—1.4% | |||||||||
Ecuador Government International Bond, | |||||||||
0.000%, due 7/31/30 | $ | 480 | $ | 136 | |||||
2.500%, due 7/31/40 (a) | 1,300 | 409 | |||||||
3.500%, due 7/31/35 (a) | 380 | 135 | |||||||
6.000%, due 7/31/30 (a) | 110 | 51 | |||||||
731 | |||||||||
Egypt—3.1% | |||||||||
Egypt Government International Bond, | |||||||||
7.300%, due 9/30/33 (b) | 250 | 165 | |||||||
7.500%, due 2/16/61 | 650 | 378 | |||||||
8.150%, due 11/20/59 | 200 | 122 | |||||||
8.750%, due 9/30/51 (b) | 250 | 157 | |||||||
8.750%, due 9/30/51 | 250 | 157 | |||||||
8.875%, due 5/29/50 | 1,025 | 651 | |||||||
1,630 | |||||||||
El Salvador—1.3% | |||||||||
El Salvador Government International Bond, | |||||||||
7.125%, due 1/20/50 | 150 | 106 | |||||||
7.625%, due 2/1/41 | 700 | 522 | |||||||
8.625%, due 2/28/29 | 60 | 54 | |||||||
682 | |||||||||
Ethiopia—0.2% | |||||||||
Ethiopia International Bond, 6.625%, due 12/11/24 | 200 | 133 | |||||||
Gabon—1.2% | |||||||||
Gabon Government International Bond, | |||||||||
6.950%, due 6/16/25 | 200 | 190 | |||||||
7.000%, due 11/24/31 | 550 | 456 | |||||||
646 | |||||||||
Ghana—1.9% | |||||||||
Ghana Government International Bond, | |||||||||
0.000%, due 4/7/25 (c) | 350 | 132 | |||||||
6.375%, due 2/11/27 (c) | 600 | 266 | |||||||
7.750%, due 4/7/29 (c) | 500 | 215 | |||||||
8.625%, due 4/7/34 (c) | 400 | 172 | |||||||
8.950%, due 3/26/51 (c) | 550 | 236 | |||||||
1,021 | |||||||||
Guatemala—1.6% | |||||||||
Guatemala Government Bond, | |||||||||
3.700%, due 10/7/33 | 755 | 628 | |||||||
4.650%, due 10/7/41 | 280 | 228 | |||||||
856 | |||||||||
Hungary—1.6% | |||||||||
Hungary Government International Bond, | |||||||||
3.125%, due 9/21/51 | 600 | 405 | |||||||
6.750%, due 9/25/52 (b) | 400 | 448 | |||||||
853 | |||||||||
Indonesia—0.4% | |||||||||
Indonesia Government International Bond, 6.500%, due 6/15/25 | IDR | 3,500,000 | 227 | ||||||
Iraq—0.2% | |||||||||
Iraq International Bond, 5.800%, due 1/15/28 | $ | 141 | 131 |
See accompanying Notes to Financial Statements.
92 | Annual Report | December 31, 2023 |
Emerging Markets Debt Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Principal Amount | Value | |||||||
Foreign Government Bonds—(continued) | |||||||||
Ivory Coast—0.5% | |||||||||
Ivory Coast Government International Bond, 6.625%, due 3/22/48 | EUR | 300 | $ | 263 | |||||
Jamaica—0.4% | |||||||||
Jamaica Government International Bond, 9.625%, due 11/3/30 | JMD | 36,000 | 235 | ||||||
Jordan—0.3% | |||||||||
Jordan Government International Bond, 5.850%, due 7/7/30 | $ | 200 | 185 | ||||||
Kenya—1.3% | |||||||||
Kenya Government International Bond, 6.875%, due 6/24/24 | 700 | 679 | |||||||
Lebanon—0.6% | |||||||||
Lebanon Government International Bond, | |||||||||
5.800%, due 4/14/20 (c) | 1,400 | 84 | |||||||
6.600%, due 11/27/26 (c) | 800 | 47 | |||||||
6.650%, due 4/22/24 (c) | 268 | 16 | |||||||
6.750%, due 11/29/27 (c) | 776 | 46 | |||||||
6.850%, due 3/23/27 (c) | 600 | 35 | |||||||
7.150%, due 11/20/31 (c) | 1,200 | 72 | |||||||
8.200%, due 5/17/33 (c) | 600 | 36 | |||||||
336 | |||||||||
Mexico—1.2% | |||||||||
Mexico Government International Bond, 6.350%, due 2/9/35 | 600 | 628 | |||||||
Mongolia—0.7% | |||||||||
Mongolia Government International Bond, | |||||||||
4.450%, due 7/7/31 | 200 | 168 | |||||||
8.650%, due 1/19/28 (b) | 200 | 210 | |||||||
378 | |||||||||
Morocco—0.3% | |||||||||
Morocco Government International Bond, 4.000%, due 12/15/50 | 200 | 144 | |||||||
Mozambique—0.6% | |||||||||
Mozambique International Bond, 9.000%, due 9/15/31 (a) | 400 | 339 | |||||||
Nigeria—0.8% | |||||||||
Nigeria Government International Bond, 8.250%, due 9/28/51 | 500 | 410 | |||||||
Oman—1.2% | |||||||||
Oman Government International Bond, | |||||||||
5.625%, due 1/17/28 | 400 | 407 | |||||||
6.750%, due 1/17/48 | 200 | 209 | |||||||
616 | |||||||||
Pakistan—1.9% | |||||||||
Pakistan Government International Bond, | |||||||||
6.000%, due 4/8/26 | 300 | 211 | |||||||
6.875%, due 12/5/27 | 400 | 271 | |||||||
8.250%, due 4/15/24 | 200 | 189 | |||||||
8.875%, due 4/8/51 | 550 | 330 | |||||||
1,001 | |||||||||
Panama—2.8% | |||||||||
Panama Government International Bond, | |||||||||
2.252%, due 9/29/32 | 200 | 146 | |||||||
3.870%, due 7/23/60 | 710 | 424 | |||||||
4.500%, due 5/15/47 | 200 | 142 | |||||||
4.500%, due 4/1/56 | 200 | 134 |
Issuer | Principal Amount | Value | |||||||
Foreign Government Bonds—(continued) | |||||||||
Panama—(continued) | |||||||||
4.500%, due 1/19/63 | $ | 600 | $ | 392 | |||||
6.400%, due 2/14/35 | 270 | 263 | |||||||
1,501 | |||||||||
Paraguay—2.1% | |||||||||
Paraguay Government International Bond, | |||||||||
2.739%, due 1/29/33 | 1,060 | 869 | |||||||
3.849%, due 6/28/33 | 300 | 265 | |||||||
1,134 | |||||||||
Peru—1.0% | |||||||||
Peruvian Government International Bond, | |||||||||
2.783%, due 1/23/31 | 200 | 174 | |||||||
3.230%, due 7/28/21 | 230 | 143 | |||||||
3.600%, due 1/15/72 | 300 | 211 | |||||||
528 | |||||||||
Philippines—0.8% | |||||||||
Philippines Government International Bond, 3.700%, due 2/2/42 | 500 | 427 | |||||||
Poland—1.6% | |||||||||
Poland Government International Bond, 5.500%, due 4/4/53 | 800 | 832 | |||||||
Qatar—3.4% | |||||||||
Qatar Government International Bond, | |||||||||
4.400%, due 4/16/50 | 1,750 | 1,615 | |||||||
5.103%, due 4/23/48 | 200 | 202 | |||||||
1,817 | |||||||||
Romania—1.2% | |||||||||
Romania Government International Bond, | |||||||||
2.875%, due 4/13/42 | EUR | 100 | 75 | ||||||
3.375%, due 1/28/50 | 430 | 322 | |||||||
7.625%, due 1/17/53 (b) | $ | 200 | 223 | ||||||
620 | |||||||||
Saudi Arabia—1.0% | |||||||||
Saudi Government International Bond, 3.450%, due 2/2/61 | 800 | 561 | |||||||
Senegal—0.3% | |||||||||
Senegal Government International Bond, 5.375%, due 6/8/37 | EUR | 200 | 163 | ||||||
Serbia—0.3% | |||||||||
Serbia International Bond, 2.050%, due 9/23/36 | 200 | 153 | |||||||
South Africa—2.7% | |||||||||
South Africa Government International Bond, | |||||||||
4.300%, due 10/12/28 | $ | 400 | 374 | ||||||
5.750%, due 9/30/49 | 650 | 518 | |||||||
8.750%, due 2/28/48 | ZAR | 13,400 | 539 | ||||||
1,431 | |||||||||
Sri Lanka—1.7% | |||||||||
Sri Lanka Government International Bond, | |||||||||
5.750%, due 4/18/23 (c) | $ | 400 | 204 | ||||||
6.350%, due 6/28/24 (c) | 400 | 202 | |||||||
6.850%, due 11/3/25 (c) | 400 | 204 | |||||||
7.550%, due 3/28/30 (c) | 200 | 100 | |||||||
7.850%, due 3/14/29 (c) | 400 | 200 | |||||||
910 |
See accompanying Notes to Financial Statements.
December 31, 2023 | William Blair Funds | 93 |
Emerging Markets Debt Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Principal Amount | Value | |||||||
Foreign Government Bonds—(continued) | |||||||||
Suriname—0.4% | |||||||||
Suriname Government International Bond, 7.950%, due 7/15/33 (b) | $ | 250 | $ | 216 | |||||
Trinidad And Tobago—0.4% | |||||||||
Trinidad and Tobago Government International Bond, 5.950%, due 1/14/31 (b) | 200 | 207 | |||||||
Tunisia—0.9% | |||||||||
Tunisian Republic, | |||||||||
5.625%, due 2/17/24 | EUR | 100 | 107 | ||||||
5.750%, due 1/30/25 | $ | 200 | 163 | ||||||
6.375%, due 7/15/26 | EUR | 300 | 229 | ||||||
499 | |||||||||
Turkey—1.6% | |||||||||
Turkiye Government International Bond, | |||||||||
4.875%, due 10/9/26 | $ | 200 | 192 | ||||||
4.875%, due 4/16/43 | 400 | 292 | |||||||
9.375%, due 1/19/33 | 200 | 226 | |||||||
Turkiye Government Bond, 12.600%, due 10/1/25 | TRY | 5,000 | 120 | ||||||
830 | |||||||||
Ukraine—1.2% | |||||||||
Ukraine Government International Bond, | |||||||||
7.253%, due 3/15/35 (c) | $ | 1,300 | 301 | ||||||
7.750%, due 8/1/41 (a)(c) | 600 | 267 | |||||||
9.750%, due 11/1/30 (c) | 200 | 57 | |||||||
625 | |||||||||
United Arab Emirates—0.6% | |||||||||
Abu Dhabi Government International Bond, 3.000%, due 9/15/51 | 450 | 321 | |||||||
Uruguay—0.5% | |||||||||
Uruguay Government International Bond, | |||||||||
4.975%, due 4/20/55 | 200 | 195 | |||||||
9.750%, due 7/20/33 | UYU | 3,788 | 98 | ||||||
293 | |||||||||
Uzbekistan—0.3% | |||||||||
Republic of Uzbekistan International Bond, 3.900%, due 10/19/31 | $ | 200 | 168 | ||||||
Venezuela—0.5% | |||||||||
Venezuela Government International Bond, | |||||||||
8.250%, due 10/13/24 (c) | 800 | 115 | |||||||
11.950%, due 8/5/31 (c) | 800 | 144 | |||||||
259 | |||||||||
Zambia—1.0% | |||||||||
Zambia Government International Bond, | |||||||||
5.375%, due 9/20/22 (c) | 250 | 139 | |||||||
8.500%, due 4/14/24 (c) | 200 | 124 | |||||||
8.970%, due 7/30/27 (c) | 400 | 247 | |||||||
510 | |||||||||
Total Foreign Government Bonds—63.1% (cost $33,516) | 33,706 | ||||||||
Foreign Corporate Bonds—30.6% | |||||||||
Brazil—2.7% | |||||||||
Aegea Finance SARL, 9.000%, due 1/20/31 (b) | 200 | 213 | |||||||
Azul Secured Finance LLP, 10.875%, due 5/28/30 (b) | 175 | 145 |
Issuer | Principal Amount | Value | |||||||
Foreign Corporate Bonds—(continued) | |||||||||
Brazil—(continued) | |||||||||
Banco do Brasil SA, 10 year CMT + 4.398%, 6.250%, due 4/15/24 (d)(e) | $ | 200 | $ | 194 | |||||
CSN Resources SA, 8.875%, due 12/5/30 (b) | 200 | 208 | |||||||
ERO Copper Corp., 6.500%, due 2/15/30 | 200 | 177 | |||||||
Hidrovias International Finance SARL, 4.950%, due 2/8/31 | 200 | 157 | |||||||
Minerva Luxembourg SA, 4.375%, due 3/18/31 | 200 | 164 | |||||||
Petrorio Luxembourg Trading SARL, 6.125%, due 6/9/26 | 200 | 196 | |||||||
1,454 | |||||||||
Chile—2.4% | |||||||||
CAP SA, 3.900%, due 4/27/31 | 250 | 191 | |||||||
Corp. Nacional del Cobre de Chile, | |||||||||
3.750%, due 1/15/31 | 400 | 361 | |||||||
3.700%, due 1/30/50 | 200 | 144 | |||||||
Empresa Nacional del Petroleo, 5.250%, due 11/6/29 | 450 | 435 | |||||||
Inversiones CMPC SA, 3.000%, due 4/6/31 | 200 | 170 | |||||||
1,301 | |||||||||
China—1.5% | |||||||||
China Evergrande Group, 9.500%, due 3/29/24 (c) | 300 | 3 | |||||||
China Oil & Gas Group Ltd., 4.700%, due 6/30/26 | 200 | 177 | |||||||
ENN Clean Energy International Investment Ltd., 3.375%, due 5/12/26 | 200 | 187 | |||||||
Sinochem Offshore Capital Co. Ltd., 2.375%, due 9/23/31 | 500 | 407 | |||||||
Yuzhou Group Holdings Co. Ltd., 7.850%, due 8/12/26 (c) | 200 | 12 | |||||||
786 | |||||||||
Colombia—0.7% | |||||||||
Corp. Andina de Fomento, 6.770%, due 5/24/28 | COP | 1,000,000 | 216 | ||||||
SierraCol Energy Andina LLC, 6.000%, due 6/15/28 | $ | 200 | 167 | ||||||
383 | |||||||||
Costa Rica—0.4% | |||||||||
Instituto Costarricense de Electricidad, 6.375%, due 5/15/43 | 250 | 222 | |||||||
Czech Republic—0.4% | |||||||||
Energo-Pro AS, 8.500%, due 2/4/27 | 200 | 196 | |||||||
Dominican Republic—0.4% | |||||||||
Empresa Generadora de Electricidad Haina SA, 5.625%, due 11/8/28 (b) | 250 | 227 | |||||||
Hong Kong—0.3% | |||||||||
Standard Chartered PLC, 5 year CMT + 3.135%, 4.300%, due 8/19/28 (d)(e) | 200 | 159 |
See accompanying Notes to Financial Statements.
94 | Annual Report | December 31, 2023 |
Emerging Markets Debt Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Principal Amount | Value | |||||||
Foreign Corporate Bonds—(continued) | |||||||||
Hungary—0.4% | |||||||||
Magyar Export-Import Bank Zrt, 6.125%, due 12/4/27 | $ | 200 | $ | 203 | |||||
India—2.0% | |||||||||
European Bank for Reconstruction & Development, 6.300%, due 10/26/27 | INR | 20,000 | 235 | ||||||
International Bank for Reconstruction & Development, 6.850%, due 4/24/28 | INR | 20,000 | 238 | ||||||
Network i2i Ltd., 5 year CMT + 4.274%, 5.650%, due 1/15/25 (d)(e) | $ | 200 | 197 | ||||||
Periama Holdings LLC, 5.950%, due 4/19/26 | 200 | 197 | |||||||
ReNew Wind Energy AP2/ReNew Power Pvt Ltd., 4.500%, due 7/14/28 | 200 | 178 | |||||||
1,045 | |||||||||
Indonesia—2.7% | |||||||||
European Bank for Reconstruction & Development, 6.000%, due 1/17/30 | IDR | 3,500,000 | 225 | ||||||
Medco Maple Tree Pte. Ltd., 8.960%, due 4/27/29 (b) | $ | 250 | 255 | ||||||
Pertamina Persero PT, | |||||||||
6.000%, due 5/3/42 | 200 | 209 | |||||||
2.300%, due 2/9/31 | 200 | 168 | |||||||
3.100%, due 8/27/30 | 400 | 359 | |||||||
Perusahaan Penerbit SBSN Indonesia III, 4.700%, due 6/6/32 (b) | 200 | 200 | |||||||
1,416 | |||||||||
Kazakhstan—0.6% | |||||||||
KazMunayGas National Co. JSC, 3.500%, due 4/14/33 | 400 | 332 | |||||||
Malaysia—1.2% | |||||||||
Dua Capital Ltd., 2.780%, due 5/11/31 | 550 | 479 | |||||||
Petronas Capital Ltd., 4.550%, due 4/21/50 | 200 | 184 | |||||||
663 | |||||||||
Mexico—5.3% | |||||||||
Banco Nacional de Comercio Exterior SNC, 5 year CMT + 2.000%, 2.720%, due 8/11/31 (e) | 220 | 185 | |||||||
BBVA Bancomer SA, 5 year CMT + 2.650%, 5.125%, due 1/18/33 (e) | 200 | 180 | |||||||
Credito Real SAB de CV SOFOM ER, 5.000%, due 2/1/27 (c) | EUR | 200 | 24 | ||||||
Grupo Axo SAPI de CV, 5.750%, due 6/8/26 | $ | 200 | 183 | ||||||
Orbia Advance Corp. SAB de CV, 1.875%, due 5/11/26 | 200 | 183 | |||||||
Petroleos Mexicanos, | |||||||||
6.700%, due 2/16/32 | 230 | 190 | |||||||
7.690%, due 1/23/50 | 250 | 178 | |||||||
4.750%, due 2/26/29 | EUR | 200 | 181 | ||||||
6.490%, due 1/23/27 | $ | 200 | 187 | ||||||
5.950%, due 1/28/31 | 1,000 | 794 | |||||||
6.750%, due 9/21/47 | 808 | 529 | |||||||
2,814 |
Issuer | Principal Amount | Value | |||||||
Foreign Corporate Bonds—(continued) | |||||||||
Nigeria—0.3% | |||||||||
SEPLAT Energy PLC, 7.750%, due 4/1/26 | $ | 200 | $ | 183 | |||||
Paraguay—0.4% | |||||||||
Telefonica Celular del Paraguay SA, 5.875%, due 4/15/27 | 200 | 195 | |||||||
Peru—1.4% | |||||||||
Banco Internacional del Peru SAA Interbank, 5 year CMT + 3.711%, 4.000%, due 7/8/30 (e) | 200 | 191 | |||||||
Corp. Financiera de Desarrollo SA, 2.400%, due 9/28/27 | 420 | 373 | |||||||
InRetail Consumer, 3.250%, due 3/22/28 | 200 | 178 | |||||||
742 | |||||||||
Saudi Arabia—0.5% | |||||||||
Gaci First Investment Co., 5.125%, due 2/14/53 | 300 | 271 | |||||||
South Africa—0.3% | |||||||||
Stillwater Mining Co., 4.000%, due 11/16/26 | 200 | 177 | |||||||
Supranational—0.9% | |||||||||
Gabon Blue Bond Master Trust, 6.097%, due 8/1/38 (b) | 500 | 491 | |||||||
Thailand—0.3% | |||||||||
Bangkok Bank PCL, 5 year CMT + 2.150%, 3.466%, due 9/23/36 (e) | 200 | 167 | |||||||
Trinidad And Tobago—0.8% | |||||||||
Heritage Petroleum Co. Ltd., | |||||||||
9.000%, due 8/12/29 (b) | 200 | 210 | |||||||
9.000%, due 8/12/29 | 200 | 209 | |||||||
419 | |||||||||
Turkey—2.7% | |||||||||
Hazine Mustesarligi Varlik Kiralama AS, 7.250%, due 2/24/27 | 200 | 203 | |||||||
Istanbul Metropolitan Municipality, 10.500%, due 12/6/28 (b) | 200 | 212 | |||||||
TAV Havalimanlari Holding AS, 8.500%, due 12/7/28 (b) | 200 | 204 | |||||||
Turkiye Ihracat Kredi Bankasi AS, | |||||||||
5.750%, due 7/6/26 | 200 | 194 | |||||||
9.375%, due 1/31/26 (b) | 200 | 209 | |||||||
Turkiye Vakiflar Bankasi TAO, 9.000%, due 10/12/28 (b) | 200 | 210 | |||||||
WE Soda Investments Holding PLC, 9.500%, due 10/6/28 (b) | 200 | 207 | |||||||
1,439 | |||||||||
United Arab Emirates—1.8% | |||||||||
Emirates NBD Bank PJSC, 2.625%, due 2/18/25 | 200 | 194 | |||||||
GEMS MENASA Cayman Ltd./GEMS Education Delaware LLC, 7.125%, due 7/31/26 | 200 | 196 | |||||||
MAF Global Securities Ltd., 5 year CMT + 3.539%, 6.375%, due 3/20/26 (d)(e) | 200 | 196 |
See accompanying Notes to Financial Statements.
December 31, 2023 | William Blair Funds | 95 |
Emerging Markets Debt Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Issuer | Principal Amount | Value | |||||||
Foreign Corporate Bonds—(continued) | |||||||||
United Arab Emirates—(continued) | |||||||||
Shelf Drilling Holdings Ltd., 9.625%, due 4/15/29 (b) | $ | 200 | $ | 194 | |||||
Sobha Sukuk Ltd., 8.750%, due 7/17/28 | 200 | 199 | |||||||
979 | |||||||||
Venezuela—0.2% | |||||||||
Petroleos de Venezuela SA, | |||||||||
6.000%, due 11/15/26 (c) | 250 | 27 | |||||||
9.750%, due 5/17/35 (c) | 530 | 65 | |||||||
92 | |||||||||
Total Foreign Corporate Bonds—30.6% (cost $16,830) | 16,356 | ||||||||
Foreign Municipal Bonds—0.3% | |||||||||
Argentina—0.3% | |||||||||
Provincia de Buenos Aires, | |||||||||
6.375%, due 9/1/37 (a) | 170 | 65 | |||||||
6.375%, due 9/1/37 (a)(b) | 50 | 19 | |||||||
5.500%, due 9/1/37 (a)(b) | 200 | 58 | |||||||
142 | |||||||||
Total Foreign Municipal Bonds—0.3% (cost $191) | 142 | ||||||||
Repurchase Agreement | |||||||||
Fixed Income Clearing Corporation, 2.300% dated 12/29/23, due 01/02/24, repurchase price $1,351, collateralized by U.S. Treasury Note, 3.875%, due 12/31/27, valued at $1,378 | �� | 1,351 | 1,351 | ||||||
Total Repurchase Agreement—2.5% (cost $1,351) | 1,351 | ||||||||
U.S. Government—1.8% | |||||||||
U.S. Treasury Bill, | |||||||||
5.260%, due 2/15/24 (f) | 760 | 755 | |||||||
5.287%, due 4/25/24 | 220 | 217 | |||||||
Total U.S. Government—1.8% (cost $971) | 972 | ||||||||
Total Investments in Securities—98.3% (cost $52,859) | 52,527 | ||||||||
Total Investments—98.3% (cost $52,859) | 52,527 | ||||||||
Cash and other assets, less liabilities—1.7% | 909 | ||||||||
Net assets—100.0% | $ | 53,436 |
(a) Variable/Floating interest rate security. Certain variable/floating interest rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description above. Rate presented is as of December 31, 2023.
(b) 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.
(c) Security is currently in default and/or non-income producing.
(d) Security has perpetual maturity. Date shown represents the next contractual call date.
(e) Floating Rate Bond. Rate shown is as of December 31, 2023.
(f) Security, or portion of security, is segregated as collateral to cover initial margin requirements on centrally cleared swaps aggregating a total value of $477 (in thousands).
CMT = Constant Maturity Treasury
EURIBOR = Euro Interbank Offered Rate
SOFR = Secured Overnight Financing Rate
TIIE = Interbank Equilibrium Interest Rate
At December 31, 2023, the Fund’s Portfolio of Investments includes the following currency categories (as a percentage of long-term investments):
U.S. Dollar | 90.7 | % | ||
Euro | 3.6 | % | ||
South African Rand | 1.1 | % | ||
All Other Currencies | 4.6 | % | ||
Total | 100.0 | % | ||
At December 31, 2023, the Fund’s Portfolio of Investments includes the following industry categories (as a percentage of long-term investments): | ||||
Sovereign | 69.1 | % | ||
Corporate | ||||
Financials | 3.4 | % | ||
Materials | 3.0 | % | ||
Utilities | 2.2 | % | ||
Energy | 1.9 | % | ||
Consumer Discretionary | 1.0 | % | ||
Communication Services | 0.8 | % | ||
Industrials | 0.7 | % | ||
Consumer Staples | 0.7 | % | ||
Quasi-Sovereign | 13.7 | % | ||
Supranational | 2.8 | % | ||
Sub Sovereign | 0.7 | % | ||
Total | 100.0 | % | ||
See accompanying Notes to Financial Statements.
96 | Annual Report | December 31, 2023 |
Emerging Markets Debt Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Forward Foreign Currency Contracts
Settlement Date | Deliver/Receive | Counterparty | Local Currency (in thousands) | USD (Base) Purchased or Sold | Current Value | Net Unrealized Appreciation (Depreciation) | |||||||||||||
Sold | |||||||||||||||||||
3/20/24 | Euro | Citibank N.A. | 1,764 | $1,913 | $1,953 | $ | (40 | ) | |||||||||||
Total net unrealized appreciation (depreciation) on forward foreign currency contracts | $ | (40 | ) |
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) | |||||||||||||||||
1-Day USD SOFR | Receive | 3.500% | 1Y | June 2063 | LCH | $ | 52 | $ | — | $ | (4 | ) | $ | (4 | ) | |||||||||||
1-Day USD SOFR | Receive | 3.750% | 1Y | June 2048 | LCH | $ | 1,190 | 46 | (55 | ) | (101 | ) | ||||||||||||||
EUR 6M EURIBOR | Receive | 3.500% | 1Y | September 2028 | LCH | EUR | 90 | (1 | ) | (4 | ) | (3 | ) | |||||||||||||
EUR 6M EURIBOR | Receive | 3.250% | 1Y | September 2030 | LCH | EUR | 161 | 1 | (9 | ) | (10 | ) | ||||||||||||||
EUR 6M EURIBOR | Receive | 3.250% | 1Y | September 2033 | LCH | EUR | 174 | 1 | (12 | ) | (13 | ) | ||||||||||||||
EUR 6M EURIBOR | Receive | 3.250% | 1Y | September 2038 | LCH | EUR | 515 | (2 | ) | (47 | ) | (45 | ) | |||||||||||||
EUR 6M EURIBOR | Receive | 3.000% | 1Y | September 2048 | LCH | EUR | 248 | 5 | (28 | ) | (33 | ) | ||||||||||||||
1-Day USD SOFR | Pay | 4.500% | 1Y | June 2026 | LCH | $ | 3,643 | (20 | ) | 35 | 55 | |||||||||||||||
1-Day USD SOFR | Pay | 4.250% | 1Y | June 2028 | LCH | $ | 4,170 | (11 | ) | 92 | 103 | |||||||||||||||
1-Day USD SOFR | Pay | 4.000% | 1Y | June 2030 | LCH | $ | 474 | (15 | ) | 10 | 25 | |||||||||||||||
1-Day USD SOFR | Pay | 4.000% | 1Y | June 2033 | LCH | $ | 489 | (24 | ) | 17 | 41 | |||||||||||||||
1-Day USD SOFR | Pay | 4.000% | 1Y | June 2043 | LCH | $ | 1,441 | (58 | ) | 92 | 150 | |||||||||||||||
MXN 28D TIIE | Pay | 10.650% | 28D | October 2025 | LCH | MXN | 10,000 | — | 8 | 8 | ||||||||||||||||
$ | 173 |
See accompanying Notes to Financial Statements.
December 31, 2023 | William Blair Funds | 97 |
Emerging Markets Debt Fund
Portfolio of Investments, December 31, 2023 (all dollar amounts in thousands)
Centrally Cleared Credit Default Swaps
Reference Entity | Buy/Sell Protection | Fixed Rate | Payment Frequency | Maturity Date | Cleared Exchange | Notional Amount (in thousands) | Upfront Payment Paid (Received) | Value | Unrealized Appreciation (Depreciation) | |||||||||||||||||
Kingdom of Saudi Arabia | Buy | 1.000% | 3M | June 2026 | ICE | $ | 400 | $ | (8 | ) | $ | (7 | ) | $ | 1 | |||||||||||
Argentine Republic | Buy | 1.000% | 3M | December 2025 | ICE | 500 | 304 | 264 | (40 | ) | ||||||||||||||||
Argentine Republic | Buy | 1.000% | 3M | June 2027 | ICE | 250 | 205 | 156 | (49 | ) | ||||||||||||||||
Argentine Republic | Buy | 5.000% | 3M | June 2033 | ICE | 250 | 186 | 152 | (34 | ) | ||||||||||||||||
Republic of South Africa | Buy | 1.000% | 3M | June 2028 | ICE | 450 | 30 | 15 | (15 | ) | ||||||||||||||||
Argentine Republic | Buy | 5.000% | 3M | June 2026 | ICE | 300 | 168 | 157 | (11 | ) | ||||||||||||||||
Republic of Panama | Buy | 1.000% | 3M | December 2033 | ICE | 270 | 27 | 25 | (2 | ) | ||||||||||||||||
Argentine Republic | Sell | 5.000% | 3M | December 2031 | ICE | 500 | (293 | ) | (302 | ) | (9 | ) | ||||||||||||||
Argentine Republic | Sell | 5.000% | 3M | June 2032 | ICE | 100 | (63 | ) | (61 | ) | 2 | |||||||||||||||
Argentine Republic | Sell | 5.000% | 3M | June 2027 | ICE | 250 | (190 | ) | (140 | ) | 50 | |||||||||||||||
Republic of Colombia | Sell | 1.000% | 3M | June 2033 | ICE | 100 | (20 | ) | (11 | ) | 9 | |||||||||||||||
Argentine Republic | Sell | 5.000% | 3M | June 2025 | ICE | 150 | (68 | ) | (59 | ) | 9 | |||||||||||||||
Argentine Republic | Sell | 5.000% | 3M | June 2028 | ICE | 150 | (96 | ) | (86 | ) | 10 | |||||||||||||||
Argentine Republic | Sell | 5.000% | 3M | June 2024 | ICE | 50 | (11 | ) | (7 | ) | 4 | |||||||||||||||
$ | (75 | ) | ||||||||||||||||||||||||
Total net unrealized appreciation (depreciation) on swaps | $ | 98 |
Currency Legend
BRL Brazilian Real
COP Colombian Peso
DOP Dominican Peso
EUR Euro
IDR Indonesian Rupiah
INR Indian Rupee
JMD Jamaican Dollar
MXN Mexican Peso
TRY Turkish Lira
USD U.S. Dollar
UYU Uruguayan Peso
ZAR South African Rand
See accompanying Notes to Financial Statements.
98 | Annual Report | December 31, 2023 |
Statements of Assets and Liabilities
As of December 31, 2023 (dollar amounts in thousands)
Growth Fund | Large Cap Growth Fund | Mid Cap Value Fund | Small-Mid Cap Core Fund | |||||||||||||
Assets | ||||||||||||||||
Investments in securities, at cost | $ | 127,619 | $ | 1,141,676 | $ | 1,332 | $ | 179,454 | ||||||||
Investments in securities, at value | $ | 238,727 | $ | 1,631,986 | $ | 1,406 | $ | 196,244 | ||||||||
Cash | — | — | 67 | — | ||||||||||||
Receivable for securities sold | 641 | — | — | — | ||||||||||||
Receivable for fund shares sold | 267 | 3,542 | — | 202 | ||||||||||||
Receivable from Adviser | 2 | 166 | 11 | 27 | ||||||||||||
Dividend and interest receivable | 25 | 1,275 | 3 | 114 | ||||||||||||
Total assets | 239,662 | 1,636,969 | 1,487 | 196,587 | ||||||||||||
Liabilities | ||||||||||||||||
Payable for securities purchased | — | — | — | 32 | ||||||||||||
Payable for fund shares redeemed | 51 | 1,717 | — | 163 | ||||||||||||
Management fee payable | 152 | 818 | 1 | 140 | ||||||||||||
Distribution fee payable | 7 | 33 | — | — | ||||||||||||
Other payables and accrued expenses | 60 | 299 | 28 | 72 | ||||||||||||
Total liabilities | 270 | 2,867 | 29 | 407 | ||||||||||||
Net assets | $ | 239,392 | $ | 1,634,102 | $ | 1,458 | $ | 196,180 | ||||||||
Capital | ||||||||||||||||
Composition of net assets | ||||||||||||||||
Paid in capital | $ | 126,668 | $ | 1,219,423 | $ | 1,449 | $ | 193,556 | ||||||||
Total distributable earnings (loss) | 112,724 | 414,679 | 9 | 2,624 | ||||||||||||
Net assets | $ | 239,392 | $ | 1,634,102 | $ | 1,458 | $ | 196,180 | ||||||||
Class N shares | ||||||||||||||||
Net assets | $ | 30,789 | $ | 158,351 | — | — | ||||||||||
Shares outstanding | 3,174,613 | 6,899,307 | — | — | ||||||||||||
Net asset value per share | $ | 9.70 | $ | 22.95 | — | — | ||||||||||
Class I shares | ||||||||||||||||
Net assets | $ | 164,166 | $ | 1,106,857 | $ | 85 | $ | 101,972 | ||||||||
Shares outstanding | 12,851,879 | 44,915,616 | 8,349 | 6,671,090 | ||||||||||||
Net asset value per share | $ | 12.77 | $ | 24.64 | $ | 10.25 | $ | 15.29 | ||||||||
Class R6 shares | ||||||||||||||||
Net assets | $ | 44,437 | $ | 368,894 | $ | 1,373 | $ | 94,208 | ||||||||
Shares outstanding | 3,462,181 | 14,973,894 | 133,977 | 6,155,811 | ||||||||||||
Net asset value per share | $ | 12.84 | $ | 24.64 | $ | 10.25 | $ | 15.30 |
See accompanying Notes to Financial Statements.
December 31, 2023 | William Blair Funds | 99 |
Statements of Operations
For the Year Ended December 31, 2023 (all amounts in thousands)
Growth Fund | Large Cap Growth Fund | Mid Cap Value Fund | Small-Mid Cap Core Fund | |||||||||||||
Investment income | ||||||||||||||||
Dividends | $ | 1,638 | $ | 11,081 | $ | 34 | $ | 1,934 | ||||||||
Less foreign tax withheld | (16 | ) | — | — | (25 | ) | ||||||||||
Interest | 79 | 225 | 1 | 75 | ||||||||||||
Total income | 1,701 | 11,306 | 35 | 1,984 | ||||||||||||
Expenses | ||||||||||||||||
Investment advisory fees | 1,644 | 8,535 | 11 | 1,431 | ||||||||||||
Distribution fees | 71 | 360 | — | — | ||||||||||||
Custodian fees | 68 | 63 | 59 | 71 | ||||||||||||
Transfer agent fees | 69 | 202 | 1 | 9 | ||||||||||||
Sub-transfer agent fees | ||||||||||||||||
Class N | 40 | 193 | — | — | ||||||||||||
Class I | 67 | 1,222 | — | 137 | ||||||||||||
Professional fees | 42 | 144 | 29 | 40 | ||||||||||||
Registration fees | 46 | 73 | 37 | 40 | ||||||||||||
Shareholder reporting fees | 11 | 80 | 1 | 2 | ||||||||||||
Trustee fees | 19 | 115 | — | 14 | ||||||||||||
Other expenses | 9 | 57 | 4 | 6 | ||||||||||||
Total expenses before expense limitation | 2,086 | 11,044 | 142 | 1,750 | ||||||||||||
Expenses waived or reimbursed by the Adviser | ||||||||||||||||
Class N | (17 | ) | (195 | ) | — | — | ||||||||||
Class I | — | (1,237 | ) | (7 | ) | (199 | ) | |||||||||
Class R6 | — | (165 | ) | (123 | ) | (74 | ) | |||||||||
Total expenses waived or reimbursed by the Adviser | (17 | ) | (1,597 | ) | (130 | ) | (273 | ) | ||||||||
Net expenses | 2,069 | 9,447 | 12 | 1,477 | ||||||||||||
Net investment income (loss) | (368 | ) | 1,859 | 23 | 507 | |||||||||||
Realized and unrealized gain (loss) | ||||||||||||||||
Net realized gain (loss) on transactions from: | ||||||||||||||||
Investments in securities | 22,560 | (43,131 | ) | (34 | ) | (3,377 | ) | |||||||||
Total net realized gain (loss) | 22,560 | (43,131 | ) | (34 | ) | (3,377 | ) | |||||||||
Change in net unrealized appreciation (depreciation) of: | ||||||||||||||||
Investments in securities | 47,607 | 516,549 | 179 | 22,648 | ||||||||||||
Change in net unrealized appreciation (depreciation) | 47,607 | 516,549 | 179 | 22,648 | ||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 69,799 | $ | 475,277 | $ | 168 | $ | 19,778 |
See accompanying Notes to Financial Statements.
100 | Annual Report | December 31, 2023 |
Statements of Changes in Net Assets
For the Years Ended December 31, 2023 and 2022 (all amounts in thousands)
Growth Fund | Large Cap Growth Fund | Mid Cap Value Fund | Small-Mid Cap Core Fund | |||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 (a) | 2023 | 2022 | |||||||||||||||||||||||||
Operations | ||||||||||||||||||||||||||||||||
Net investment income (loss) | $ | (368 | ) | $ | (790 | ) | $ | 1,859 | $ | 1,184 | $ | 23 | $ | 18 | $ | 507 | $ | (56 | ) | |||||||||||||
Net realized gain (loss) on investments, and other assets and liabilities | 22,560 | 7,497 | (43,131 | ) | (30,976 | ) | (34 | ) | (34 | ) | (3,377 | ) | (4,236 | ) | ||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments, and other assets and liabilities | 47,607 | (104,075 | ) | 516,549 | (412,476 | ) | 179 | (105 | ) | 22,648 | (19,672 | ) | ||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 69,799 | (97,368 | ) | 475,277 | (442,268 | ) | 168 | (121 | ) | 19,778 | (23,964 | ) | ||||||||||||||||||||
Distributions to shareholders | ||||||||||||||||||||||||||||||||
Class N | (3,790 | ) | (1,055 | ) | — | (1,004 | ) | — | — | — | — | |||||||||||||||||||||
Class I | (14,632 | ) | (4,820 | ) | — | (5,758 | ) | (1 | ) | (1 | ) | (151 | ) | — | ||||||||||||||||||
Class R6 | (3,966 | ) | (1,050 | ) | — | (2,071 | ) | (21 | ) | (15 | ) | (180 | ) | — | ||||||||||||||||||
Total distributions | (22,388 | ) | (6,925 | ) | — | (8,833 | ) | (22 | ) | (16 | ) | (331 | ) | — | ||||||||||||||||||
Capital stock transactions | ||||||||||||||||||||||||||||||||
Proceeds from sale of shares | 19,855 | 36,716 | 537,063 | 808,663 | 133 | 1,661 | 59,829 | 109,055 | ||||||||||||||||||||||||
Shares issued in reinvestment of income dividends and capital gain distributions | 21,140 | 6,664 | — | 8,463 | 22 | 16 | 317 | — | ||||||||||||||||||||||||
Less cost of shares redeemed | (38,022 | ) | (95,779 | ) | (451,258 | ) | (399,025 | ) | (350 | ) | (33 | ) | (27,634 | ) | (33,650 | ) | ||||||||||||||||
Net increase (decrease) in net assets resulting from capital share transactions | 2,973 | (52,399 | ) | 85,805 | 418,101 | (195 | ) | 1,644 | 32,512 | 75,405 | ||||||||||||||||||||||
Increase (decrease) in net assets | 50,384 | (156,692 | ) | 561,082 | (33,000 | ) | (49 | ) | 1,507 | 51,959 | 51,441 | |||||||||||||||||||||
Net assets | ||||||||||||||||||||||||||||||||
Beginning of period | 189,008 | 345,700 | 1,073,020 | 1,106,020 | 1,507 | — | 144,221 | 92,780 | ||||||||||||||||||||||||
End of period | $ | 239,392 | $ | 189,008 | $ | 1,634,102 | $ | 1,073,020 | $ | 1,458 | $ | 1,507 | $ | 196,180 | $ | 144,221 |
(a) | For the period from March 16, 2022 (Commencement of Operations) to December 31, 2022. |
See accompanying Notes to Financial Statements.
December 31, 2023 | William Blair Funds | 101 |
Statements of Assets and Liabilities
As of December 31, 2023 (dollar amounts in thousands)
Small-Mid Cap Growth Fund | Small-Mid Cap Value Fund | Small Cap Growth Fund | Small Cap Value Fund | |||||||||||||
Assets | ||||||||||||||||
Investments in securities, at cost | $ | 1,689,492 | $ | 1,458 | $ | 639,438 | $ | 1,200,979 | ||||||||
Investments in securities, at value | $ | 2,001,384 | $ | 1,548 | $ | 749,927 | $ | 1,305,456 | ||||||||
Cash | — | 44 | — | — | ||||||||||||
Receivable for securities sold | — | 1 | — | 1,171 | ||||||||||||
Receivable for fund shares sold | 1,301 | — | 2,912 | 1,126 | ||||||||||||
Receivable from Adviser | 176 | 14 | 90 | 9 | ||||||||||||
Dividend and interest receivable | 294 | 3 | 199 | 1,641 | ||||||||||||
Total assets | 2,003,155 | 1,610 | 753,128 | 1,309,403 | ||||||||||||
Liabilities | ||||||||||||||||
Payable for securities purchased | — | — | 4,043 | — | ||||||||||||
Payable for fund shares redeemed | 5,900 | — | 415 | 322 | ||||||||||||
Management fee payable | 1,557 | 1 | 573 | 816 | ||||||||||||
Distribution fee payable | 22 | — | 26 | 1 | ||||||||||||
Other payables and accrued expenses | 481 | 28 | 160 | 218 | ||||||||||||
Total liabilities | 7,960 | 29 | 5,217 | 1,357 | ||||||||||||
Net assets | $ | 1,995,195 | $ | 1,581 | $ | 747,911 | $ | 1,308,046 | ||||||||
Capital | ||||||||||||||||
Composition of net assets | ||||||||||||||||
Paid in capital | $ | 1,720,543 | $ | 1,512 | $ | 648,441 | $ | 1,215,449 | ||||||||
Total distributable earnings (loss) | 274,652 | 69 | 99,470 | 92,597 | ||||||||||||
Net assets | $ | 1,995,195 | $ | 1,581 | $ | 747,911 | $ | 1,308,046 | ||||||||
Class N shares | ||||||||||||||||
Net assets | $ | 107,791 | — | $ | 122,370 | $ | 2,591 | |||||||||
Shares outstanding | 4,158,450 | — | 4,472,231 | 87,005 | ||||||||||||
Net asset value per share | $ | 25.92 | — | $ | 27.36 | $ | 29.78 | |||||||||
Class I shares | ||||||||||||||||
Net assets | $ | 1,437,622 | $ | 84 | $ | 445,483 | $ | 813,809 | ||||||||
Shares outstanding | 50,811,162 | 7,959 | 13,649,541 | 27,368,479 | ||||||||||||
Net asset value per share | $ | 28.29 | $ | 10.60 | $ | 32.64 | $ | 29.74 | ||||||||
Class R6 shares | ||||||||||||||||
Net assets | $ | 449,782 | $ | 1,497 | $ | 180,058 | $ | 491,646 | ||||||||
Shares outstanding | 15,840,815 | 141,179 | 5,496,978 | 16,538,070 | ||||||||||||
Net asset value per share | $ | 28.39 | $ | 10.60 | $ | 32.76 | $ | 29.73 |
See accompanying Notes to Financial Statements.
102 | Annual Report | December 31, 2023 |
Statements of Operations
For the Year Ended December 31, 2023 (all amounts in thousands)
Small-Mid Cap Growth Fund | Small-Mid Cap Value Fund (a) | Small Cap Growth Fund | Small Cap Value Fund | |||||||||||||
Investment income | ||||||||||||||||
Dividends | $ | 12,577 | $ | 13 | $ | 3,727 | $ | 22,932 | ||||||||
Less foreign tax withheld | (237 | ) | — | (89 | ) | (59 | ) | |||||||||
Interest | 969 | — | 430 | 458 | ||||||||||||
Total income | 13,309 | 13 | 4,068 | 23,331 | ||||||||||||
Expenses | ||||||||||||||||
Investment advisory fees | 19,280 | 5 | 6,283 | 9,365 | ||||||||||||
Distribution fees | 274 | — | 295 | 6 | ||||||||||||
Custodian fees | 81 | 23 | 80 | 67 | ||||||||||||
Transfer agent fees | 177 | 3 | 99 | 70 | ||||||||||||
Sub-transfer agent fees | ||||||||||||||||
Class N | 151 | — | 162 | 2 | ||||||||||||
Class I | 2,014 | — | 435 | 988 | ||||||||||||
Professional fees | 191 | 29 | 112 | 128 | ||||||||||||
Registration fees | 51 | 2 | 68 | 54 | ||||||||||||
Shareholder reporting fees | 174 | — | 61 | 34 | ||||||||||||
Trustee fees | 194 | — | 55 | 118 | ||||||||||||
Other expenses | 59 | 1 | 23 | 33 | ||||||||||||
Total expenses before expense limitation | 22,646 | 63 | 7,673 | 10,865 | ||||||||||||
Expenses waived or reimbursed by the Adviser | ||||||||||||||||
Class N | (128 | ) | — | (154 | ) | — | ||||||||||
Class I | (1,701 | ) | (3 | ) | (405 | ) | (210 | ) | ||||||||
Class R6 | (129 | ) | (55 | ) | (59 | ) | — | |||||||||
Total expenses waived or reimbursed by the Adviser | (1,958 | ) | (58 | ) | (618 | ) | (210 | ) | ||||||||
Net expenses | 20,688 | 5 | 7,055 | 10,655 | ||||||||||||
Net investment income (loss) | (7,379 | ) | 8 | (2,987 | ) | 12,676 | ||||||||||
Realized and unrealized gain (loss) | ||||||||||||||||
Net realized gain (loss) on transactions from: | ||||||||||||||||
Investments in securities | 122,239 | (22 | ) | 27,255 | 17,717 | |||||||||||
Foreign currency transactions | 5 | — | 1 | — | ||||||||||||
Total net realized gain (loss) | 122,244 | (22 | ) | 27,256 | 17,717 | |||||||||||
Change in net unrealized appreciation (depreciation) of: | ||||||||||||||||
Investments in securities | 212,044 | 90 | 71,883 | 98,036 | ||||||||||||
Change in net unrealized appreciation (depreciation) | 212,044 | 90 | 71,883 | 98,036 | ||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 326,909 | $ | 76 | $ | 96,152 | $ | 128,429 |
(a) | For the period from August 17, 2023 (Commencement of Operations) to December 31, 2023. |
See accompanying Notes to Financial Statements.
December 31, 2023 | William Blair Funds | 103 |
Statements of Changes in Net Assets
For the Years Ended December 31, 2023 and 2022 (all amounts in thousands)
Small-Mid Cap Growth Fund | Small-Mid Cap Value Fund | Small Cap Growth Fund | Small Cap Value Fund | |||||||||||||||||||||||||
2023 | 2022 | 2023 (a) | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||
Operations | ||||||||||||||||||||||||||||
Net investment income (loss) | $ | (7,379 | ) | $ | (14,658 | ) | $ | 8 | $ | (2,987 | ) | $ | (4,622 | ) | $ | 12,676 | $ | 10,262 | ||||||||||
Net realized gain (loss) on investments, and other assets and liabilities | 122,244 | 12,027 | (22 | ) | 27,256 | (12,492 | ) | 17,717 | 254,754 | |||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments, and other assets and liabilities | 212,044 | (679,120 | ) | 90 | 71,883 | (136,772 | ) | 98,036 | (425,307 | ) | ||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 326,909 | (681,751 | ) | 76 | 96,152 | (153,886 | ) | 128,429 | (160,291 | ) | ||||||||||||||||||
Distributions to shareholders | ||||||||||||||||||||||||||||
Class N | (8,769 | ) | (3,897 | ) | — | (2,238 | ) | (4,693 | ) | (77 | ) | (187 | ) | |||||||||||||||
Class I | (107,708 | ) | (49,427 | ) | — | (6,617 | ) | (10,353 | ) | (26,503 | ) | (54,725 | ) | |||||||||||||||
Class R6 | (32,457 | ) | (12,748 | ) | (7 | ) | (2,645 | ) | (3,839 | ) | (16,439 | ) | (33,495 | ) | ||||||||||||||
Total distributions | (148,934 | ) | (66,072 | ) | (7 | ) | (11,500 | ) | (18,885 | ) | (43,019 | ) | (88,407 | ) | ||||||||||||||
Capital stock transactions | ||||||||||||||||||||||||||||
Proceeds from sale of shares | 275,386 | 509,350 | 1,755 | 254,864 | 137,373 | 147,911 | 229,728 | |||||||||||||||||||||
Shares issued in reinvestment of income dividends and capital gain distributions | 144,458 | 64,751 | 7 | 11,299 | 18,519 | 35,896 | 86,757 | |||||||||||||||||||||
Less cost of shares redeemed | (614,949 | ) | (862,015 | ) | (250 | ) | (132,741 | ) | (163,362 | ) | (175,379 | ) | (922,977 | ) | ||||||||||||||
Net increase (decrease) in net assets resulting from capital share transactions | (195,105 | ) | (287,914 | ) | 1,512 | 133,422 | (7,470 | ) | 8,428 | (606,492 | ) | |||||||||||||||||
Increase (decrease) in net assets | (17,130 | ) | (1,035,737 | ) | 1,581 | 218,074 | (180,241 | ) | 93,838 | (855,190 | ) | |||||||||||||||||
Net assets | ||||||||||||||||||||||||||||
Beginning of period | 2,012,325 | 3,048,062 | — | 529,837 | 710,078 | 1,214,208 | 2,069,398 | |||||||||||||||||||||
End of period | $ | 1,995,195 | $ | 2,012,325 | $ | 1,581 | $ | 747,911 | $ | 529,837 | $ | 1,308,046 | $ | 1,214,208 |
(a) | For the period from August 17, 2023 (Commencement of Operations) to December 31, 2023. |
See accompanying Notes to Financial Statements.
104 | Annual Report | December 31, 2023 |
Statements of Assets and Liabilities
As of December 31, 2023 (dollar amounts in thousands)
Global Leaders Fund | International Leaders Fund | International Growth Fund | Institutional International Growth Fund | |||||||||||||
Assets | ||||||||||||||||
Investments in securities, at cost | $ | 63,252 | $ | 833,829 | $ | 1,047,798 | $ | 693,832 | ||||||||
Investments in securities, at value | $ | 100,178 | $ | 1,085,187 | $ | 1,426,317 | $ | 930,924 | ||||||||
Cash | 5 | — | 54 | 33 | ||||||||||||
Foreign currency, at value (cost $— ; $65; $79; $48) | — | 65 | 78 | 48 | ||||||||||||
Receivable for securities sold | — | 1,691 | 375 | 246 | ||||||||||||
Receivable for fund shares sold | 261 | 795 | 6,850 | 60 | ||||||||||||
Receivable from Adviser | 19 | 80 | 128 | 43 | ||||||||||||
Dividend and interest receivable | 132 | 1,683 | 3,765 | 2,077 | ||||||||||||
Total assets | 100,595 | 1,089,501 | 1,437,567 | 933,431 | ||||||||||||
Liabilities | ||||||||||||||||
Payable for securities purchased | — | 1,799 | 2,996 | 1,960 | ||||||||||||
Payable for fund shares redeemed | — | 1,639 | 140 | — | ||||||||||||
Management fee payable | 71 | 765 | 1,147 | 722 | ||||||||||||
Distribution fee payable | 2 | 7 | 61 | — | ||||||||||||
Foreign capital gains tax liability | 19 | 1,110 | 1,744 | 1,125 | ||||||||||||
Other payables and accrued expenses | 48 | 245 | 375 | 150 | ||||||||||||
Total liabilities | 140 | 5,565 | 6,463 | 3,957 | ||||||||||||
Net assets | $ | 100,455 | $ | 1,083,936 | $ | 1,431,104 | $ | 929,474 | ||||||||
Capital | ||||||||||||||||
Composition of net assets | ||||||||||||||||
Paid in capital | $ | 61,715 | $ | 954,119 | $ | 1,038,218 | $ | 702,398 | ||||||||
Total distributable earnings (loss) | 38,740 | 129,817 | 392,886 | 227,076 | ||||||||||||
Net assets | $ | 100,455 | $ | 1,083,936 | $ | 1,431,104 | $ | 929,474 | ||||||||
Class N shares | ||||||||||||||||
Net assets | $ | 8,253 | $ | 34,162 | $ | 292,273 | — | |||||||||
Shares outstanding | 542,434 | 1,756,199 | 10,539,619 | — | ||||||||||||
Net asset value per share | $ | 15.21 | $ | 19.45 | $ | 27.73 | — | |||||||||
Class I shares | ||||||||||||||||
Net assets | $ | 76,915 | $ | 413,373 | $ | 992,759 | — | |||||||||
Shares outstanding | 5,001,430 | 21,086,084 | 34,621,741 | — | ||||||||||||
Net asset value per share | $ | 15.38 | $ | 19.60 | $ | 28.67 | — | |||||||||
Institutional/Class R6 shares | ||||||||||||||||
Net assets | $ | 15,287 | $ | 636,401 | $ | 146,072 | $ | 929,474 | ||||||||
Shares outstanding | 993,561 | 32,443,134 | 5,089,557 | 64,532,154 | ||||||||||||
Net asset value per share | $ | 15.39 | $ | 19.62 | $ | 28.70 | $ | 14.40 |
See accompanying Notes to Financial Statements.
December 31, 2023 | William Blair Funds | 105 |
Statements of Operations
For the Year Ended December 31, 2023 (all amounts in thousands)
Global Leaders Fund | International Leaders Fund | International Growth Fund | Institutional International Growth Fund | |||||||||||||
Investment income | ||||||||||||||||
Dividends | $ | 981 | $ | 16,853 | $ | 25,975 | $ | 15,584 | ||||||||
Less foreign tax withheld | (71 | ) | (2,018 | ) | (2,759 | ) | (1,654 | ) | ||||||||
Interest | 46 | 520 | 500 | 352 | ||||||||||||
Other | — | — | 1,801 | — | ||||||||||||
Total income | 956 | 15,355 | 25,517 | 14,282 | ||||||||||||
Expenses | ||||||||||||||||
Investment advisory fees | 836 | 9,143 | 13,723 | 8,349 | ||||||||||||
Distribution fees | 23 | 89 | 742 | — | ||||||||||||
Custodian fees | 76 | 169 | 323 | 218 | ||||||||||||
Transfer agent fees | 9 | 65 | 100 | 34 | ||||||||||||
Sub-transfer agent fees | ||||||||||||||||
Class N | 11 | 37 | 424 | — | ||||||||||||
Class I | 64 | 544 | 1,039 | — | ||||||||||||
Professional fees | 41 | 127 | 176 | 131 | ||||||||||||
Registration fees | 49 | 84 | 54 | 25 | ||||||||||||
Shareholder reporting fees | 6 | 45 | 72 | 5 | ||||||||||||
Trustee fees | 9 | 100 | 138 | 87 | ||||||||||||
Other expenses | 7 | 40 | 44 | 30 | ||||||||||||
Total expenses before expense limitation | 1,131 | 10,443 | 16,835 | 8,879 | ||||||||||||
Expenses waived or reimbursed by the Adviser | ||||||||||||||||
Class N | (25 | ) | (39 | ) | (460 | ) | — | |||||||||
Class I | (176 | ) | (579 | ) | (1,161 | ) | — | |||||||||
Institutional/Class R6 | (30 | ) | (371 | ) | (95 | ) | (531 | ) | ||||||||
Total expenses waived or reimbursed by the Adviser | (231 | ) | (989 | ) | (1,716 | ) | (531 | ) | ||||||||
Net expenses | 900 | 9,454 | 15,119 | 8,348 | ||||||||||||
Net investment income (loss) | 56 | 5,901 | 10,398 | 5,934 | ||||||||||||
Realized and unrealized gain (loss) | ||||||||||||||||
Net realized gain (loss) on transactions from: | ||||||||||||||||
Investments in securities (net of foreign capital gains tax paid $— ; $222; $201; $133) | 9,175 | (47,580 | ) | 59,694 | 26,633 | |||||||||||
Redemptions in-kind | — | 5,580 | — | — | ||||||||||||
Foreign currency transactions | (11 | ) | (441 | ) | (410 | ) | (155 | ) | ||||||||
Total net realized gain (loss) | 9,164 | (42,441 | ) | 59,284 | 26,478 | |||||||||||
Change in net unrealized appreciation (depreciation) of: | ||||||||||||||||
Investments in securities (net of foreign capital gains tax accrual $7; $397; $1,123; $725) | 10,664 | 162,500 | 136,422 | 95,560 | ||||||||||||
Foreign currency translations | 5 | 74 | (161 | ) | 16 | |||||||||||
Change in net unrealized appreciation (depreciation) | 10,669 | 162,574 | 136,261 | 95,576 | ||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 19,889 | $ | 126,034 | $ | 205,943 | $ | 127,988 |
See accompanying Notes to Financial Statements.
106 | Annual Report | December 31, 2023 |
Statements of Changes in Net Assets
For the Years Ended December 31, 2023 and 2022 (all amounts in thousands)
Global Leaders Fund | International Leaders Fund | International Growth Fund | Institutional International Growth Fund | |||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||
Operations | ||||||||||||||||||||||||||||||||
Net investment income (loss) | $ | 56 | $ | (75 | ) | $ | 5,901 | $ | 4,996 | $ | 10,398 | $ | 11,837 | $ | 5,934 | $ | 7,223 | |||||||||||||||
Net realized gain (loss) on investments, and other assets and liabilities | 9,164 | 707 | (42,441 | ) | (68,687 | ) | 59,284 | 62,630 | 26,478 | 44,969 | ||||||||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments, and other assets and liabilities | 10,669 | (42,397 | ) | 162,574 | (337,406 | ) | 136,261 | (671,912 | ) | 95,576 | (410,590 | ) | ||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 19,889 | (41,765 | ) | 126,034 | (401,097 | ) | 205,943 | (597,445 | ) | 127,988 | (358,398 | ) | ||||||||||||||||||||
Distributions to shareholders | ||||||||||||||||||||||||||||||||
Class N | (535 | ) | (174 | ) | (64 | ) | (68 | ) | (9,793 | ) | (23,255 | ) | — | — | ||||||||||||||||||
Class I | (4,850 | ) | (1,502 | ) | (1,847 | ) | (631 | ) | (36,328 | ) | (74,123 | ) | — | — | ||||||||||||||||||
Institutional/Class R6 | (998 | ) | (296 | ) | (3,151 | ) | (1,130 | ) | (5,134 | ) | (11,497 | ) | (22,859 | ) | (56,236 | ) | ||||||||||||||||
Total distributions | (6,383 | ) | (1,972 | ) | (5,062 | ) | (1,829 | ) | (51,255 | ) | (108,875 | ) | (22,859 | ) | (56,236 | ) | ||||||||||||||||
Capital stock transactions | ||||||||||||||||||||||||||||||||
Proceeds from sale of shares | 4,333 | 14,887 | 149,041 | 455,376 | 146,640 | 539,922 | 59,867 | 142,332 | ||||||||||||||||||||||||
Shares issued in reinvestment of income dividends and capital gain distributions | 6,321 | 1,954 | 4,693 | 1,814 | 49,407 | 104,297 | 22,254 | 56,157 | ||||||||||||||||||||||||
Less cost of shares redeemed | (15,264 | ) | (25,327 | ) | (194,991 | ) | (356,773 | ) | (354,267 | ) | (626,160 | ) | (166,508 | ) | (156,966 | ) | ||||||||||||||||
Net increase (decrease) in net assets resulting from capital share transactions | (4,610 | ) | (8,486 | ) | (41,257 | ) | 100,417 | (158,220 | ) | 18,059 | (84,387 | ) | 41,523 | |||||||||||||||||||
Increase (decrease) in net assets | 8,896 | (52,223 | ) | 79,715 | (302,509 | ) | (3,532 | ) | (688,261 | ) | 20,742 | (373,111 | ) | |||||||||||||||||||
Net assets | ||||||||||||||||||||||||||||||||
Beginning of period | 91,559 | 143,782 | 1,004,221 | 1,306,730 | 1,434,636 | 2,122,897 | 908,732 | 1,281,843 | ||||||||||||||||||||||||
End of period | $ | 100,455 | $ | 91,559 | $ | 1,083,936 | $ | 1,004,221 | $ | 1,431,104 | $ | 1,434,636 | $ | 929,474 | $ | 908,732 |
See accompanying Notes to Financial Statements.
December 31, 2023 | William Blair Funds | 107 |
Statements of Assets and Liabilities
As of December 31, 2023 (dollar amounts in thousands)
International Small Cap Growth Fund | Emerging Markets Leaders Fund | Emerging Markets Growth Fund | Emerging Markets ex China Growth Fund | |||||||||||||
Assets | ||||||||||||||||
Investments in securities, at cost | $ | 196,844 | $ | 216,846 | $ | 672,168 | $ | 17,809 | ||||||||
Investments in securities, at value | $ | 240,546 | $ | 260,465 | $ | 832,837 | $ | 22,161 | ||||||||
Foreign currency, at value (cost $1,454; $7; $ — ; $1) | 1,454 | 7 | — | 1 | ||||||||||||
Receivable for securities sold | 1,255 | 2,897 | 373 | 62 | ||||||||||||
Receivable for fund shares sold | 15 | 164 | 343 | — | ||||||||||||
Receivable from Adviser | 82 | 42 | 129 | 19 | ||||||||||||
Dividend and interest receivable | 484 | 270 | 1,690 | 35 | ||||||||||||
Total assets | 243,836 | 263,845 | 835,372 | 22,278 | ||||||||||||
Liabilities | ||||||||||||||||
Payable for securities purchased | 2,294 | 1,668 | 455 | 3 | ||||||||||||
Payable for fund shares redeemed | 68 | 44 | 3,891 | — | ||||||||||||
Payable to custodian | — | 7,294 | 309 | — | ||||||||||||
Management fee payable | 197 | 207 | 633 | 17 | ||||||||||||
Distribution fee payable | — | — | 3 | — | ||||||||||||
Foreign capital gains tax liability | 424 | 927 | 6,857 | 182 | ||||||||||||
Other payables and accrued expenses | 107 | 120 | 383 | 66 | ||||||||||||
Total liabilities | 3,090 | 10,260 | 12,531 | 268 | ||||||||||||
Net assets | $ | 240,746 | $ | 253,585 | $ | 822,841 | $ | 22,010 | ||||||||
Capital | ||||||||||||||||
Composition of net assets | ||||||||||||||||
Paid in capital | $ | 259,122 | $ | 336,238 | $ | 805,530 | $ | 19,068 | ||||||||
Total distributable earnings (loss) | (18,376 | ) | (82,653 | ) | 17,311 | 2,942 | ||||||||||
Net assets | $ | 240,746 | $ | 253,585 | $ | 822,841 | $ | 22,010 | ||||||||
Class N shares | ||||||||||||||||
Net assets | $ | 1,547 | $ | 1,007 | $ | 13,748 | — | |||||||||
Shares outstanding | 126,679 | 115,448 | 1,210,982 | — | ||||||||||||
Net asset value per share | $ | 12.21 | $ | 8.72 | $ | 11.35 | — | |||||||||
Class I shares | ||||||||||||||||
Net assets | $ | 103,520 | $ | 13,772 | $ | 173,377 | $ | 2,841 | ||||||||
Shares outstanding | 8,351,646 | 1,572,879 | 14,945,199 | 244,069 | ||||||||||||
Net asset value per share | $ | 12.40 | $ | 8.76 | $ | 11.60 | $ | 11.64 | ||||||||
Class R6 shares | ||||||||||||||||
Net assets | $ | 135,679 | $ | 238,806 | $ | 635,716 | $ | 19,169 | ||||||||
Shares outstanding | 10,876,748 | 27,298,325 | 54,128,408 | 1,645,345 | ||||||||||||
Net asset value per share | $ | 12.47 | $ | 8.75 | $ | 11.74 | $ | 11.65 |
See accompanying Notes to Financial Statements.
108 | Annual Report | December 31, 2023 |
Statements of Operations
For the Year Ended December 31, 2023 (all amounts in thousands)
International Small Cap Growth Fund | Emerging Markets Leaders Fund | Emerging Markets Growth Fund | Emerging Markets ex China Growth Fund | |||||||||||||
Investment income | ||||||||||||||||
Dividends | $ | 4,556 | $ | 6,543 | $ | 14,897 | $ | 365 | ||||||||
Less foreign tax withheld | (521 | ) | (696 | ) | (1,894 | ) | (54 | ) | ||||||||
Interest | 106 | 67 | 184 | 6 | ||||||||||||
Total income | 4,141 | 5,914 | 13,187 | 317 | ||||||||||||
Expenses | ||||||||||||||||
Investment advisory fees | 2,318 | 2,811 | 6,992 | 172 | ||||||||||||
Distribution fees | 4 | 3 | 37 | — | ||||||||||||
Custodian fees | 143 | 213 | 538 | 121 | ||||||||||||
Transfer agent fees | 21 | 22 | 84 | 2 | ||||||||||||
Sub-transfer agent fees | ||||||||||||||||
Class N | 2 | 1 | 20 | — | ||||||||||||
Class I | 99 | 21 | 225 | 1 | ||||||||||||
Professional fees | 70 | 81 | 173 | 74 | ||||||||||||
Registration fees | 48 | 54 | 93 | 37 | ||||||||||||
Shareholder reporting fees | 26 | 9 | 29 | 2 | ||||||||||||
Trustee fees | 22 | 33 | 67 | 1 | ||||||||||||
Other expenses | 12 | 16 | 23 | 4 | ||||||||||||
Total expenses before expense limitation | 2,765 | 3,264 | 8,281 | 414 | ||||||||||||
Expenses waived or reimbursed by the Adviser | ||||||||||||||||
Class N | (2 | ) | (2 | ) | (33 | ) | — | |||||||||
Class I | (80 | ) | (39 | ) | (379 | ) | (20 | ) | ||||||||
Class R6 | (41 | ) | (398 | ) | (743 | ) | (221 | ) | ||||||||
Total expenses waived or reimbursed by the Adviser | (123 | ) | (439 | ) | (1,155 | ) | (241 | ) | ||||||||
Net expenses | 2,642 | 2,825 | 7,126 | 173 | ||||||||||||
Net investment income (loss) | 1,499 | 3,089 | 6,061 | 144 | ||||||||||||
Realized and unrealized gain (loss) | ||||||||||||||||
Net realized gain (loss) on transactions from: | ||||||||||||||||
Investments in securities (net of foreign capital gains tax paid $—; $620; $657; $—) | (17,085 | ) | (45,610 | ) | (75,642 | ) | (388 | ) | ||||||||
Foreign currency transactions | (101 | ) | (258 | ) | (652 | ) | (24 | ) | ||||||||
Total net realized gain (loss) | (17,186 | ) | (45,868 | ) | (76,294 | ) | (412 | ) | ||||||||
Change in net unrealized appreciation (depreciation) of: | ||||||||||||||||
Investments in securities (net of foreign capital gains tax accrual $349; $104; $5,856; $173) | 48,170 | 60,477 | 141,389 | 4,330 | ||||||||||||
Foreign currency translations | 22 | 4 | 7 | — | ||||||||||||
Change in net unrealized appreciation (depreciation) | 48,192 | 60,481 | 141,396 | 4,330 | ||||||||||||
Net increase (decrease) in net assets resulting from operations | $ | 32,505 | $ | 17,702 | $ | 71,163 | $ | 4,062 |
See accompanying Notes to Financial Statements.
December 31, 2023 | William Blair Funds | 109 |
Statements of Changes in Net Assets
For the Years Ended December 31, 2023 and 2022 (all amounts in thousands)
International Small Cap Growth Fund | Emerging Markets Leaders Fund | Emerging Markets Growth Fund | Emerging Markets ex China Growth Fund | |||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | 2023 | 2022(a) | |||||||||||||||||||||||||
Operations | ||||||||||||||||||||||||||||||||
Net investment income (loss) | $ | 1,499 | $ | 908 | $ | 3,089 | $ | 2,435 | $ | 6,061 | $ | 3,619 | $ | 144 | $ | 27 | ||||||||||||||||
Net realized gain (loss) on investments, and other assets and liabilities | (17,186 | ) | (40,464 | ) | (45,868 | ) | (73,852 | ) | (76,294 | ) | (56,336 | ) | (412 | ) | (827 | ) | ||||||||||||||||
Change in net unrealized appreciation (depreciation) on investments, and other assets and liabilities | 48,192 | (93,778 | ) | 60,481 | (55,424 | ) | 141,396 | (283,138 | ) | 4,330 | (160 | ) | ||||||||||||||||||||
Net increase (decrease) in net assets resulting from operations | 32,505 | (133,334 | ) | 17,702 | (126,841 | ) | 71,163 | (335,855 | ) | 4,062 | (960 | ) | ||||||||||||||||||||
Distributions to shareholders | ||||||||||||||||||||||||||||||||
Class N | (10 | ) | — | (8 | ) | (9 | ) | (42 | ) | (24 | ) | — | — | |||||||||||||||||||
Class I | (911 | ) | (202 | ) | (107 | ) | (289 | ) | (900 | ) | (278 | ) | (23 | ) | — | |||||||||||||||||
Class R6 | (1,252 | ) | (406 | ) | (2,141 | ) | (3,110 | ) | (3,523 | ) | (716 | ) | (161 | ) | — | |||||||||||||||||
Total distributions | (2,173 | ) | (608 | ) | (2,256 | ) | (3,408 | ) | (4,465 | ) | (1,018 | ) | (184 | ) | — | |||||||||||||||||
Capital stock transactions | ||||||||||||||||||||||||||||||||
Proceeds from sale of shares | 12,992 | 43,756 | 27,336 | 100,114 | 302,358 | 313,584 | 5,287 | 19,590 | ||||||||||||||||||||||||
Shares issued in reinvestment of income dividends and capital gain distributions | 1,806 | 513 | 2,253 | 3,401 | 3,848 | 956 | 184 | — | ||||||||||||||||||||||||
Less cost of shares redeemed | (39,334 | ) | (58,888 | ) | (143,543 | ) | (94,858 | ) | (220,197 | ) | (349,371 | ) | (372 | ) | (5,597 | ) | ||||||||||||||||
Net increase (decrease) in net assets resulting from capital share transactions | (24,536 | ) | (14,619 | ) | (113,954 | ) | 8,657 | 86,009 | (34,831 | ) | 5,099 | 13,993 | ||||||||||||||||||||
Increase (decrease) in net assets | 5,796 | (148,561 | ) | (98,508 | ) | (121,592 | ) | 152,707 | (371,704 | ) | 8,977 | 13,033 | ||||||||||||||||||||
Net assets | ||||||||||||||||||||||||||||||||
Beginning of period | 234,950 | 383,511 | 352,093 | 473,685 | 670,134 | 1,041,838 | 13,033 | — | ||||||||||||||||||||||||
End of period | $ | 240,746 | $ | 234,950 | $ | 253,585 | $ | 352,093 | $ | 822,841 | $ | 670,134 | $ | 22,010 | $ | 13,033 |
(a) | For the period from July 29, 2022 (Commencement of Operations) to December 31, 2022. |
See accompanying Notes to Financial Statements.
110 | Annual Report | December 31, 2023 |
Statements of Assets and Liabilities
As of December 31, 2023 (dollar amounts in thousands)
Emerging Markets Small Cap Growth Fund | China Growth Fund | Emerging Markets Debt Fund | ||||||||||
Assets | ||||||||||||
Investments in securities, at cost | $ | 306,080 | $ | 2,026 | $ | 52,859 | ||||||
Investments in securities, at value | $ | 396,291 | $ | 1,803 | $ | 52,527 | ||||||
Cash | — | 68 | — | |||||||||
Foreign currency, at value (cost $2,718; $—; $—) | 2,718 | — | — | |||||||||
Receivable for securities sold | 1,743 | — | — | |||||||||
Receivable for fund shares sold | 781 | — | 46 | |||||||||
Receivable for variation margin on centrally cleared swaps | — | — | 13 | |||||||||
Receivable from Adviser | 74 | 11 | 23 | |||||||||
Dividend and interest receivable | 352 | — | 960 | |||||||||
Total assets | 401,959 | 1,882 | 53,569 | |||||||||
Liabilities | ||||||||||||
Payable for securities purchased | 4,809 | — | — | |||||||||
Payable for fund shares redeemed | 38 | — | 22 | |||||||||
Payable to custodian | — | 1 | — | |||||||||
Unrealized depreciation on forward foreign currency contracts | — | — | 40 | |||||||||
Management fee payable | 359 | 1 | 29 | |||||||||
Distribution fee payable | 1 | — | — | |||||||||
Foreign capital gains tax liability | 6,790 | — | — | |||||||||
Other payables and accrued expenses | 250 | 33 | 42 | |||||||||
Total liabilities | 12,247 | 35 | 133 | |||||||||
Net assets | $ | 389,712 | $ | 1,847 | $ | 53,436 | ||||||
Capital | ||||||||||||
Composition of net assets | ||||||||||||
Paid in capital | $ | 370,646 | $ | 4,922 | $ | 64,510 | ||||||
Total distributable earnings (loss) | 19,066 | (3,075 | ) | (11,074 | ) | |||||||
Net assets | $ | 389,712 | $ | 1,847 | $ | 53,436 | ||||||
Class N shares | ||||||||||||
Net assets | $ | 3,857 | — | — | ||||||||
Shares outstanding | 196,150 | — | — | |||||||||
Net asset value per share | $ | 19.66 | — | — | ||||||||
Class I shares | ||||||||||||
Net assets | $ | 134,297 | $ | 160 | $ | 3,205 | ||||||
Shares outstanding | 6,726,789 | 32,901 | 406,261 | |||||||||
Net asset value per share | $ | 19.96 | $ | 4.87 | $ | 7.89 | ||||||
Class R6 shares | ||||||||||||
Net assets | $ | 251,558 | $ | 1,687 | $ | 50,231 | ||||||
Shares outstanding | 12,566,167 | 347,921 | 6,371,602 | |||||||||
Net asset value per share | $ | 20.02 | $ | 4.85 | $ | 7.88 |
See accompanying Notes to Financial Statements.
December 31, 2023 | William Blair Funds | 111 |
Statements of Operations
For the Year Ended December 31, 2023 (all amounts in thousands)
Emerging Markets Small Cap Growth Fund | China Growth Fund | Emerging Markets Debt Fund | ||||||||||
Investment income | ||||||||||||
Dividends | $ | 6,298 | $ | 28 | $ | — | ||||||
Less foreign tax withheld | (694 | ) | (1 | ) | — | |||||||
Interest | 63 | — | 3,723 | |||||||||
Less foreign tax withheld | — | — | (8 | ) | ||||||||
Total income | 5,667 | 27 | 3,715 | |||||||||
Expenses | ||||||||||||
Investment advisory fees | 3,872 | 15 | 314 | |||||||||
Distribution fees | 9 | — | — | |||||||||
Custodian fees | 446 | 66 | 110 | |||||||||
Transfer agent fees | 58 | 1 | 3 | |||||||||
Sub-transfer agent fees | ||||||||||||
Class N | 4 | — | — | |||||||||
Class I | 130 | — | 2 | |||||||||
Professional fees | 148 | 33 | 83 | |||||||||
Registration fees | 56 | 37 | 37 | |||||||||
Shareholder reporting fees | 26 | 1 | 8 | |||||||||
Trustee fees | 32 | — | 4 | |||||||||
Other expenses | 14 | 4 | 13 | |||||||||
Total expenses before expense limitation | 4,795 | 157 | 574 | |||||||||
Expenses waived or reimbursed by the Adviser | ||||||||||||
Class N | (9 | ) | — | — | ||||||||
Class I | (280 | ) | (33 | ) | (10 | ) | ||||||
Class R6 | (392 | ) | (109 | ) | (242 | ) | ||||||
Total expenses waived or reimbursed by the Adviser | (681 | ) | (142 | ) | (252 | ) | ||||||
Net expenses | 4,114 | 15 | 322 | |||||||||
Net investment income (loss) | 1,553 | 12 | 3,393 | |||||||||
Realized and unrealized gain (loss) | ||||||||||||
Net realized gain (loss) on transactions from: | ||||||||||||
Investments in securities (net of foreign capital gains tax paid $1,806; $—; $2) | (5,251 | ) | (869 | ) | (2,914 | ) | ||||||
Swaps | — | — | (494 | ) | ||||||||
Forward foreign currency contracts | — | — | 40 | |||||||||
Foreign currency transactions | (508 | ) | (1 | ) | 2 | |||||||
Total net realized gain (loss) | (5,759 | ) | (870 | ) | (3,366 | ) | ||||||
Change in net unrealized appreciation (depreciation) of: | ||||||||||||
Investments in securities (net of foreign capital gains tax accrual $4,754; $—; $—) | 76,207 | 386 | 6,119 | |||||||||
Swaps | — | — | 110 | |||||||||
Forward foreign currency contracts | — | — | (34 | ) | ||||||||
Foreign currency translations | 12 | — | (1 | ) | ||||||||
Change in net unrealized appreciation (depreciation) | 76,219 | 386 | 6,194 | |||||||||
Net increase (decrease) in net assets resulting from operations | $ | 72,013 | $ | (472 | ) | $ | 6,221 |
See accompanying Notes to Financial Statements.
112 | Annual Report | December 31, 2023 |
Statements of Changes in Net Assets
For the Years Ended December 31, 2023 and 2022 (all amounts in thousands)
Emerging Markets Small Cap Growth Fund | China Growth Fund | Emerging Markets Debt Fund | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Operations | ||||||||||||||||||||||||
Net investment income (loss) | $ | 1,553 | $ | 857 | $ | 12 | $ | 13 | $ | 3,393 | $ | 2,779 | ||||||||||||
Net realized gain (loss) on investments, and other assets and liabilities | (5,759 | ) | (56,248 | ) | (870 | ) | (1,957 | ) | (3,366 | ) | (7,193 | ) | ||||||||||||
Change in net unrealized appreciation (depreciation) on investments, and other assets and liabilities | 76,219 | (81,085 | ) | 386 | (178 | ) | 6,194 | (4,510 | ) | |||||||||||||||
Net increase (decrease) in net assets resulting from operations | 72,013 | (136,476 | ) | (472 | ) | (2,122 | ) | 6,221 | (8,924 | ) | ||||||||||||||
Distributions to shareholders | ||||||||||||||||||||||||
Class N | (2 | ) | (145 | ) | — | — | — | — | ||||||||||||||||
Class I | (344 | ) | (5,030 | ) | (1 | ) | — | (119 | )(a) | (75 | )(b) | |||||||||||||
Class R6 | (781 | ) | (9,975 | ) | (9 | ) | (1 | ) | (3,169 | )(a) | (3,077 | )(b) | ||||||||||||
Total distributions | (1,127 | ) | (15,150 | ) | (10 | ) | (1 | ) | (3,288 | ) | (3,152 | ) | ||||||||||||
Capital stock transactions | ||||||||||||||||||||||||
Proceeds from sale of shares | 66,177 | 121,609 | 1,544 | 420 | 4,429 | 4,347 | ||||||||||||||||||
Shares issued in reinvestment of income dividends and capital gain distributions | 1,113 | 14,983 | 10 | 1 | 3,279 | 3,151 | ||||||||||||||||||
Less cost of shares redeemed | (71,137 | ) | (162,701 | ) | (1,172 | ) | (3,576 | ) | (3,031 | ) | (1,090 | ) | ||||||||||||
Net increase (decrease) in net assets resulting from capital share transactions | (3,847 | ) | (26,109 | ) | 382 | (3,155 | ) | 4,677 | 6,408 | |||||||||||||||
Increase (decrease) in net assets | 67,039 | (177,735 | ) | (100 | ) | (5,278 | ) | 7,610 | (5,668 | ) | ||||||||||||||
Net assets | ||||||||||||||||||||||||
Beginning of period | 322,673 | 500,408 | 1,947 | 7,225 | 45,826 | 51,494 | ||||||||||||||||||
End of period | $ | 389,712 | $ | 322,673 | $ | 1,847 | $ | 1,947 | $ | 53,436 | $ | 45,826 |
(a) | Included in the distribution is a tax return of capital in the amount of $7 and $186 (in thousands) for Class I and Class R6, respectively. |
(b) | Included in the distribution is a tax return of capital in the amount of $1 and $118 (in thousands) for Class I and Class R6, respectively. |
See accompanying Notes to Financial Statements.
December 31, 2023 | William Blair Funds | 113 |
(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 | Global Equity Fund | Emerging Markets Debt Fund | ||
Growth Large Cap Growth Mid Cap Value Small-Mid Cap Core Small-Mid Cap Growth Small-Mid Cap Value Small Cap Growth Small Cap Value | Global Leaders
International Equity Funds International Leaders International Growth Institutional International Growth International Small Cap Growth Emerging Markets Leaders Emerging Markets Growth Emerging Markets ex China Growth Emerging Markets Small Cap Growth China Growth | Emerging Markets Debt |
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) Share Classes
Each Fund is comprised of Class N, Class I and Class R6 shares, except the Mid Cap Value, Small-Mid Cap Core, Small-Mid Cap Value, Emerging Markets ex China Growth, China Growth and Emerging Markets Debt Funds, which are comprised of Class I and Class R6 shares. Institutional International Growth Fund 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.
Institutional shares are available only to investors of Institutional International Growth Fund and comprise all of the outstanding shares of this Fund. Institutional shares require a minimum initial investment of $5 million, subject to certain exceptions.
Class R6 shares and Institutional shares of 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.
114 | Annual Report | December 31, 2023 |
Notes to Financial Statements
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.
(c) 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. |
(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 December 31, 2023. 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 year ended December 31, 2023, the International Growth Fund received tax reclaim payments from certain member countries of the European Union, including interest, of $1,801 (in thousands), relating to amounts withheld on dividends received by the Fund during the fiscal years ended December 31, 2018 through 2020. The amounts withheld on dividends were not previously passed through to the Fund’s shareholders in the years the dividends were received by the Fund. 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.
December 31, 2023 | William Blair Funds | 115 |
Notes to Financial Statements
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 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.
(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) 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 accrued and included within change in net unrealized appreciation (depreciation) and 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’ U.S. federal and state tax returns for the prior three years remains open and the returns are subject to examination.
116 | Annual Report | December 31, 2023 |
Notes to Financial Statements
Adjustments to the cost of investments for tax purposes may be due to the deferred loss associated with current and prior year wash sales, income recognition from investments in real estate investment trusts, and the Funds’ election to mark-to-market their investments in Passive Foreign Investment Companies (“PFICs”). The cost of investments, including derivatives, for federal income tax purposes and related gross unrealized appreciation (depreciation) and net unrealized appreciation/(depreciation) at December 31, 2023, were as follows (in thousands):
Fund | Cost of Investments | Gross Unrealized Appreciation | Gross Unrealized Depreciation | Net Unrealized Appreciation/ (Depreciation) | ||||||||||||
Growth | $ | 130,036 | $ | 112,675 | $ | 3,984 | $ | 108,691 | ||||||||
Large Cap Growth | 1,166,862 | 490,310 | 25,186 | 465,124 | ||||||||||||
Mid Cap Value | 1,339 | 168 | 101 | 67 | ||||||||||||
Small-Mid Cap Core | 181,914 | 25,706 | 11,376 | 14,330 | ||||||||||||
Small-Mid Cap Growth | 1,726,732 | 398,892 | 124,240 | 274,652 | ||||||||||||
Small-Mid Cap Value | 1,461 | 125 | 38 | 87 | ||||||||||||
Small Cap Growth | 652,849 | 140,666 | 43,588 | 97,078 | ||||||||||||
Small Cap Value | 1,204,607 | 226,121 | 125,272 | 100,849 | ||||||||||||
Global Leaders | 63,734 | 37,438 | 994 | 36,444 | ||||||||||||
International Leaders | 846,812 | 262,106 | 23,731 | 238,375 | ||||||||||||
International Growth | 1,062,091 | 390,562 | 26,336 | 364,226 | ||||||||||||
Institutional International Growth | 707,077 | 244,366 | 20,519 | 223,847 | ||||||||||||
International Small Cap Growth | 200,389 | 51,586 | 11,429 | 40,157 | ||||||||||||
Emerging Markets Leaders | 231,393 | 52,304 | 23,232 | 29,072 | ||||||||||||
Emerging Markets Growth | 686,974 | 180,276 | 34,413 | 145,863 | ||||||||||||
Emerging Markets ex China Growth | 17,964 | 4,407 | 210 | 4,197 | ||||||||||||
Emerging Markets Small Cap Growth | 308,899 | 92,693 | 5,301 | 87,392 | ||||||||||||
China Growth | 2,271 | 17 | 485 | (468 | ) | |||||||||||
Emerging Markets Debt | 53,351 | 2,720 | 3,544 | (824 | ) |
In addition, the Funds may periodically record reclassifications among certain capital accounts to reflect differences between financial reporting and income tax basis distributions. The reclassifications were reported in order to reflect the tax treatment for certain permanent differences that exist between income tax regulations and US GAAP. The reclassifications generally relate to the tax treatment of net operating losses, redemptions in-kind, and utilization of earnings and profits distributed to shareholders on redemption of shares. These reclassifications have no impact on the net asset values or the net assets of the Funds. Accordingly, at December 31, 2023, the following reclassifications were recorded (in thousands):
Fund | Paid in Capital | Total Distributable Earnings (Loss) | ||||||
Growth | $ | 1,461 | $ | (1,461 | ) | |||
Large Cap Growth | 1 | (1 | ) | |||||
Mid Cap Value | 1 | (1 | ) | |||||
Small-Mid Cap Core | — | — | ||||||
Small-Mid Cap Growth | (5 | ) | 5 | |||||
Small-Mid Cap Value | — | — | ||||||
Small Cap Growth | (2,971 | ) | 2,971 | |||||
Small Cap Value | 2,604 | (2,604 | ) | |||||
Global Leaders | 410 | (410 | ) | |||||
International Leaders | 4,993 | (4,993 | ) | |||||
International Growth | 5,358 | (5,358 | ) | |||||
Institutional International Growth | 601 | (601 | ) | |||||
International Small Cap Growth | — | — |
December 31, 2023 | William Blair Funds | 117 |
Notes to Financial Statements
Fund | Paid in Capital | Total Distributable Earnings (Loss) | ||||||
Emerging Markets Leaders | $ | — | $ | — | ||||
Emerging Markets Growth | 1 | (1 | ) | |||||
Emerging Markets ex China Growth | (18 | ) | 18 | |||||
Emerging Markets Small Cap Growth | 3 | (3 | ) | |||||
China Growth | (1 | ) | 1 | |||||
Emerging Markets Debt | (194 | ) | 194 |
The timing and characterization of certain income and capital gain distributions are determined annually in accordance with federal income tax regulations that may differ from US GAAP. As a result, net investment income or loss and net realized gain or loss for a reporting period may differ from the amount distributed during such period.
Distributions from net realized gains for book purposes may include short-term capital gains, which are included as ordinary income for tax purposes. The tax character of distributions paid during 2023 and 2022 was as follows (in thousands):
Distributions Paid in 2023 | ||||||||||||||||||||||||
Ordinary Income | Long-Term Capital Gains | |||||||||||||||||||||||
Fund | Class N | Class I | Institutional/ Class R6 | Class N | Class I | Institutional/ Class R6 | ||||||||||||||||||
Growth | $ | — | $ | — | $ | — | $ | 3,790 | $ | 14,632 | $ | 3,966 | ||||||||||||
Large Cap Growth | — | — | — | — | — | �� | — | |||||||||||||||||
Mid Cap Value | N/A | 1 | 21 | N/A | — | — | ||||||||||||||||||
Small-Mid Cap Core | N/A | 151 | 180 | N/A | — | — | ||||||||||||||||||
Small-Mid Cap Growth | — | — | — | 8,769 | 107,708 | 32,457 | ||||||||||||||||||
Small-Mid Cap Value | N/A | — | 7 | N/A | — | — | ||||||||||||||||||
Small Cap Growth | — | — | — | 2,238 | 6,617 | 2,645 | ||||||||||||||||||
Small Cap Value | 24 | 9,550 | 6,214 | 53 | 16,953 | 10,225 | ||||||||||||||||||
Global Leaders | — | 31 | 14 | 535 | 4,819 | 984 | ||||||||||||||||||
International Leaders | 64 | 1,847 | 3,151 | — | — | — | ||||||||||||||||||
International Growth | 1,965 | 9,345 | 1,373 | 7,828 | 26,983 | 3,761 | ||||||||||||||||||
Institutional International Growth | N/A | N/A | 8,111 | N/A | N/A | 14,748 | ||||||||||||||||||
International Small Cap Growth | 10 | 911 | 1,252 | — | — | — | ||||||||||||||||||
Emerging Markets Leaders | 8 | 107 | 2,141 | — | — | — | ||||||||||||||||||
Emerging Markets Growth | 42 | 900 | 3,523 | — | — | — | ||||||||||||||||||
Emerging Markets ex China Growth | N/A | 23 | 161 | N/A | — | — | ||||||||||||||||||
Emerging Markets Small Cap Growth | 2 | 344 | 781 | — | — | — | ||||||||||||||||||
China Growth | N/A | 1 | 9 | N/A | — | — | ||||||||||||||||||
Emerging Markets Debt (a) | N/A | 119 | 3,169 | N/A | — | — | ||||||||||||||||||
Distributions Paid in 2022 | ||||||||||||||||||||||||
Ordinary Income | Long-Term Capital Gains | |||||||||||||||||||||||
Fund | Class N | Class I | Institutional/ Class R6 | Class N | Class I | Institutional/ Class R6 | ||||||||||||||||||
Growth | $ | — | $ | — | $ | — | $ | 1,055 | $ | 4,820 | $ | 1,050 | ||||||||||||
Large Cap Growth | — | 801 | 396 | 1,004 | 4,957 | 1,675 | ||||||||||||||||||
Mid Cap Value | N/A | 1 | 15 | N/A | — | — | ||||||||||||||||||
Small-Mid Cap Core | N/A | — | — | N/A | — | — | ||||||||||||||||||
Small-Mid Cap Growth | — | — | — | 3,897 | 49,427 | 12,748 | ||||||||||||||||||
Small Cap Growth | — | — | — | 4,693 | 10,353 | 3,839 | ||||||||||||||||||
Small Cap Value | 27 | 9,580 | 6,246 | 160 | 45,145 | 27,249 | ||||||||||||||||||
Global Leaders | — | 51 | 19 | 174 | 1,451 | 277 | ||||||||||||||||||
International Leaders | — | — | — | 68 | 631 | 1,130 |
118 | Annual Report | December 31, 2023 |
Notes to Financial Statements
Distributions Paid in 2022 | ||||||||||||||||||||||||
Ordinary Income | Long-Term Capital Gains | |||||||||||||||||||||||
Fund | Class N | Class I | Institutional/ Class R6 | Class N | Class I | Institutional/ Class R6 | ||||||||||||||||||
International Growth | $ | 196 | $ | 2,305 | $ | 457 | $ | 23,059 | $ | 71,818 | $ | 11,040 | ||||||||||||
Institutional International Growth | N/A | N/A | 3,768 | N/A | N/A | 52,468 | ||||||||||||||||||
International Small Cap Growth | — | 202 | 406 | — | — | — | ||||||||||||||||||
Emerging Markets Leaders | — | — | — | 9 | 289 | 3,110 | ||||||||||||||||||
Emerging Markets Growth | — | — | — | 24 | 278 | 716 | ||||||||||||||||||
Emerging Markets ex China Growth | N/A | — | — | N/A | — | — | ||||||||||||||||||
Emerging Markets Small Cap Growth | — | — | — | 145 | 5,030 | 9,975 | ||||||||||||||||||
China Growth | N/A | — | 1 | N/A | — | — | ||||||||||||||||||
Emerging Markets Debt (b) | N/A | 75 | 3,077 | N/A | — | — |
(a) | Included in the distribution is a tax return of capital in the amount of $7 and $186 (in thousands) for Class I and Class R6, respectively. |
(b) | Included in the distribution is a tax return of capital in the amount of $1 and $118 (in thousands) for Class I and Class R6, respectively. |
As of December 31, 2023, the components of distributable earnings on a tax basis were as follows (in thousands):
Fund | Undistributed Ordinary Income | Accumulated Capital and Other Losses | Undistributed Long-Term Capital Gain | Net Unrealized Appreciation/ (Depreciation) | Total | |||||||||||||||
Growth | $ | — | $ | — | $ | 4,033 | $ | 108,691 | $ | 112,724 | ||||||||||
Large Cap Growth | 1,858 | (52,303 | ) | — | 465,124 | 414,679 | ||||||||||||||
Mid Cap Value | — | (58 | ) | — | 67 | 9 | ||||||||||||||
Small-Mid Cap Core | 29 | (11,735 | ) | — | 14,330 | 2,624 | ||||||||||||||
Small-Mid Cap Growth | — | — | — | 274,652 | 274,652 | |||||||||||||||
Small-Mid Cap Value | — | (18 | ) | — | 87 | 69 | ||||||||||||||
Small Cap Growth | — | — | 2,392 | 97,078 | 99,470 | |||||||||||||||
Small Cap Value | — | (8,252 | ) | — | 100,849 | 92,597 | ||||||||||||||
Global Leaders | — | — | 2,315 | 36,425 | 38,740 | |||||||||||||||
International Leaders | 1,052 | (108,554 | ) | — | 237,319 | 129,817 | ||||||||||||||
International Growth | 8,112 | — | 22,766 | 362,008 | 392,886 | |||||||||||||||
Institutional International Growth | 3,296 | — | 1,109 | 222,671 | 227,076 | |||||||||||||||
International Small Cap Growth | 899 | (59,007 | ) | — | 39,732 | (18,376 | ) | |||||||||||||
Emerging Markets Leaders | 504 | (111,294 | ) | — | 28,137 | (82,653 | ) | |||||||||||||
Emerging Markets Growth | 1,070 | (122,717 | ) | — | 138,958 | 17,311 | ||||||||||||||
Emerging Markets ex China Growth | — | (1,072 | ) | — | 4,014 | 2,942 | ||||||||||||||
Emerging Markets Small Cap Growth | — | (61,543 | ) | — | 80,609 | 19,066 | ||||||||||||||
China Growth | 1 | (2,607 | ) | — | (469 | ) | (3,075 | ) | ||||||||||||
Emerging Markets Debt | — | (10,254 | ) | — | (820 | ) | (11,074 | ) |
As of December 31, 2023, 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, 2023, and the capital loss carryforwards utilized by the Funds in 2023 (in thousands):
Available Capital Loss Carryforwards | Capital Loss Carryforwards | |||||||||||||||
Fund | Short Term | Long Term | Total | Utilized in 2023 | ||||||||||||
Large Cap Growth | $ | 24,430 | $ | 27,873 | $ | 52,303 | $ | — | ||||||||
Mid Cap Value | 58 | — | 58 | — | ||||||||||||
Small-Mid Cap Core | 8,340 | 3,395 | 11,735 | 441 | ||||||||||||
Small-Mid Cap Value | 18 | — | 18 | — | ||||||||||||
Small Cap Growth | — | — | — | 13,269 | ||||||||||||
International Leaders | 91,124 | 17,430 | 108,554 | — | ||||||||||||
International Small Cap Growth | 27,373 | 31,634 | 59,007 | — | ||||||||||||
Emerging Markets Leaders | 48,895 | 62,399 | 111,294 | — | ||||||||||||
Emerging Markets Growth | 102,342 | 20,375 | 122,717 | — | ||||||||||||
Emerging Markets ex China Growth | 1,072 | — | 1,072 | — | ||||||||||||
Emerging Markets Small Cap Growth | 61,388 | — | 61,388 | — | ||||||||||||
China Growth | 1,953 | 654 | 2,607 | — | ||||||||||||
Emerging Markets Debt | 6,186 | 3,981 | 10,167 | — |
December 31, 2023 | William Blair Funds | 119 |
Notes to Financial Statements
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. 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.
As of December 31, 2023, the following Funds deferred, on a tax basis, qualified late year losses of (in thousands):
Qualified Late Year Losses | ||||||||
Fund | Ordinary Income | Net Capital | ||||||
Small Cap Value | $ | — | $ | 8,252 | ||||
Emerging Markets Small Cap Growth | 155 | — | ||||||
Emerging Markets Debt | 87 | — |
(e) 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.
(f) 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.
(g) 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.
(h) 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 Funds recognize 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), a component of distributable earnings (loss), to capital paid in excess of par value. During the year ended December 31, 2023, the International Leaders Fund redeemed $22,968 (in thousands) of Fund shares in-kind rather than with cash and recognized net realized gains of $5,580 (in thousands) on the securities distributed to shareholders.
120 | Annual Report | December 31, 2023 |
Notes to Financial Statements
(3) Valuation
(a) Investment Valuation
The value of U.S. equity securities, including exchange-traded funds, is determined by valuing securities traded on national securities markets or in the over-the-counter markets at the last sale price or, if applicable, the official closing price or, in the absence of a recent sale on the date of determination, at the mean between the last reported bid and ask prices.
The value of foreign equity securities is generally determined based upon the last sale price on the foreign exchange or market on which it is primarily traded and in the currency of that market as of the close of the appropriate exchange or, if there have been no sales during that day, at the mean between the last reported bid and ask prices. The Adviser has determined that the passage of time between when the foreign exchanges or markets close and when the Funds compute their net asset values could cause the value of foreign equity securities to no longer be representative or accurate and, as a result, may necessitate that such securities be fair valued. Accordingly, for foreign equity securities, the Funds may use an independent pricing service to fair value price the security as of the close of regular trading on the NYSE. As a result, a Fund’s value for a foreign security may be different from the last sale price (or the mean between the last reported bid and ask prices). As of December 31, 2023, 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.
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.
Securities, and other assets, for which a market quotation 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. Pursuant to Rule 2a-5 under the 1940 Act, the Board of Trustees has designated the Adviser as the valuation designee to perform fair value determinations for the Funds. The value of these fair valued securities may be different from the last sale price (or the mean between the last reported bid and ask prices), and there is no guarantee that a fair valued security will be sold at the price at which a Fund is carrying the security.
(b) Fair Value Measurements
Fair value is defined as the price that a Fund would receive upon selling a security in an orderly transaction to an independent buyer in the principal or most advantageous market for the investment. Various inputs are used in determining the value of a Fund’s investments. A three-tier hierarchy of inputs is used to classify fair value measurements for disclosure purposes. The three-tier hierarchy of inputs is summarized in the three broad levels listed below:
• | Level 1—Quoted prices (unadjusted) in active markets for an identical security. | |
• | Level 2—Prices determined using other significant observable inputs. Observable inputs are inputs that other market participants would use in pricing a security. These may include quoted prices for similar securities, interest rates, prepayment speeds, credit risk, and others. In addition, other observable inputs such as foreign exchange rates, benchmark securities indices and foreign futures contracts may be utilized in the valuation of certain foreign securities when significant events occur between the last sale on the foreign securities exchange and the time at which the net asset value of the Fund is calculated. | |
• | Level 3—Prices determined using significant unobservable inputs. In situations where quoted prices or observable inputs are unavailable (for example, when there is little or no market activity for an investment), unobservable inputs may be used. Unobservable inputs reflect the Fund’s own assumptions about the factors market participants would use in pricing an investment, and are based on the best information available. |
December 31, 2023 | William Blair Funds | 121 |
Notes to Financial Statements
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 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
Forward foreign currency contracts and swaps are valued using pricing inputs observed from actively quoted markets and are categorized within Level 2 of the fair value hierarchy.
As of December 31, 2023, 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 Value | Small-Mid Cap Core | ||||||||||||
Level 1 | ||||||||||||||||
Common Stocks | $ | 235,993 | $ | 1,624,644 | $ | 1,406 | $ | 194,380 | ||||||||
Level 2 | ||||||||||||||||
Repurchase Agreements | 2,734 | 7,342 | — | 1,864 | ||||||||||||
Level 3 | ||||||||||||||||
None | — | — | — | — | ||||||||||||
Total investments in securities | $ | 238,727 | $ | 1,631,986 | $ | 1,406 | $ | 196,244 | ||||||||
Investments in securities | Small-Mid Cap Growth | Small-Mid Cap Value | Small Cap Growth | Small Cap Value | ||||||||||||
Level 1 | ||||||||||||||||
Common Stocks | $ | 1,973,564 | $ | 1,548 | $ | 718,924 | $ | 1,295,769 | ||||||||
Exchange-Traded Funds | — | — | 7,534 | — | ||||||||||||
Level 2 | ||||||||||||||||
Repurchase Agreements | 27,820 | — | 23,469 | 9,687 | ||||||||||||
Level 3 | ||||||||||||||||
Common Stocks | — | — | — | — | ||||||||||||
Rights | — | — | — | — | ||||||||||||
Total investments in securities | $ | 2,001,384 | $ | 1,548 | $ | 749,927 | $ | 1,305,456 |
122 | Annual Report | December 31, 2023 |
Notes to Financial Statements
Investments in securities | Global Leaders | International Leaders | International Growth | Institutional International Growth | ||||||||||||
Level 1 | ||||||||||||||||
Common Stocks | $ | 99,652 | $ | 1,060,873 | $ | 1,379,964 | $ | 898,777 | ||||||||
Level 2 | ||||||||||||||||
Repurchase Agreements | 526 | 24,314 | 46,353 | 32,147 | ||||||||||||
Level 3 | ||||||||||||||||
None | — | — | — | — | ||||||||||||
Total investments in securities | $ | 100,178 | $ | 1,085,187 | $ | 1,426,317 | $ | 930,924 | ||||||||
Investments in securities | International Small Cap Growth | Emerging Markets Leaders | Emerging Markets Growth | Emerging Markets ex China Growth | ||||||||||||
Level 1 | ||||||||||||||||
Common Stocks | $ | 236,835 | $ | 253,380 | $ | 814,234 | $ | 21,708 | ||||||||
Rights | — | — | 3 | — | ||||||||||||
Level 2 | ||||||||||||||||
Common Stocks | 1,197 | 7,085 | 9,181 | 231 | ||||||||||||
Repurchase Agreements | 2,514 | — | 9,419 | 222 | ||||||||||||
Level 3 | ||||||||||||||||
None | — | — | — | — | ||||||||||||
Total investments in securities | $ | 240,546 | $ | 260,465 | $ | 832,837 | $ | 22,161 | ||||||||
Investments in securities | Emerging Markets Small Cap Growth | China Growth | Emerging Markets Debt | |||||||||||||
Level 1 | ||||||||||||||||
Common Stocks | $ | 389,662 | $ | 1,803 | $ | — | ||||||||||
Level 2 | ||||||||||||||||
Common Stocks | 958 | — | — | |||||||||||||
Foreign Corporate Bonds | — | — | 16,356 | |||||||||||||
Foreign Government Bonds | — | — | 33,706 | |||||||||||||
Foreign Municipal Bonds | — | — | 142 | |||||||||||||
Repurchase Agreements | 5,671 | — | 1,351 | |||||||||||||
U.S. Government | — | — | 972 | |||||||||||||
Level 3 | ||||||||||||||||
None | — | — | — | |||||||||||||
Total investments in securities | $ | 396,291 | $ | 1,803 | $ | 52,527 |
December 31, 2023 | William Blair Funds | 123 |
Notes to Financial Statements
Investments in securities | Emerging Markets Small Cap Growth | China Growth | Emerging Markets Debt | |||||||||
Other financial instruments | ||||||||||||
Assets | ||||||||||||
Level 1 | ||||||||||||
None | $ | — | $ | — | $ | — | ||||||
Level 2 | ||||||||||||
Swaps | — | — | 467 | |||||||||
Level 3 | ||||||||||||
None | — | — | — | |||||||||
Liabilities | ||||||||||||
Level 1 | ||||||||||||
None | — | — | — | |||||||||
Level 2 | ||||||||||||
Forward Foreign Currency Contracts | — | — | (40 | ) | ||||||||
Swaps | — | — | (369 | ) | ||||||||
Level 3 | ||||||||||||
None | — | — | — | |||||||||
Total other financial instruments | $ | — | $ | — | $ | 58 |
See Portfolio of Investments for Sector Classification.
The fair value estimates for the Level 3 securities in the Small-Mid Cap Growth and Small Cap Growth Funds were determined in good faith by the Adviser pursuant to the Fund’s Valuation Procedures. There were various factors considered in reaching the fair value determination, including, but not limited to, the following: the type of security, the extent of public trading of the security, information obtained for the security, and analysis of the company’s performance and market trends that influence its performance. The Level 3 securities represented 0.00% and 0.00% as a percentage of net assets in the Small-Mid Cap Growth and Small Cap Growth Funds, respectively.
124 | Annual Report | December 31, 2023 |
Notes to Financial Statements
(4) Transactions with Affiliates
(a) Management and Expense Limitation Agreements
Each Fund has a management agreement with the Adviser for investment management, clerical, bookkeeping and administrative services. Each Fund pays the Adviser an annual management fee, which is accrued daily and paid monthly, based on a specified percentage of the Fund’s average daily net assets. Each Fund’s annual management fee rate is as follows:
U.S. Equity Funds | ||||
Growth | 0.75 | % | ||
Large Cap Growth | 0.60 | % | ||
Mid Cap Value | 0.70 | % | ||
Small-Mid Cap Core | 0.90 | % | ||
Small-Mid Cap Growth1 | 0.94 | % | ||
Small-Mid Cap Value | 0.80 | % | ||
Small Cap Growth2 | 0.94 | % | ||
Small Cap Value | 0.75 | % | ||
Emerging Markets Debt Fund | ||||
Emerging Markets Debt | 0.65 | % | ||
Global Equity Fund | ||||
Global Leaders | 0.85 | % |
International Equity Funds | ||||
International Leaders | 0.85 | % | ||
International Growth: | ||||
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: | ||||
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 Leaders | 0.94 | % | ||
Emerging Markets Growth | 0.94 | % | ||
Emerging Markets ex China Growth | 0.94 | % | ||
Emerging Markets Small Cap Growth | 1.10 | % | ||
China Growth | 0.94 | % |
1 | Prior to May 1, 2023, the Small-Mid Cap Growth Fund paid a management fee at a rate of 1.00% of the Fund’s average daily net assets. Effective May 1, 2023, the management fee paid to the Adviser was reduced to 0.94%. |
2 | Prior to May 1, 2023, the Small Cap Growth Fund paid a management fee at a rate of 1.10% of the Fund’s average daily net assets. Effective May 1, 2023, the management fee paid to the Adviser was reduced to 0.94%. |
December 31, 2023 | William Blair Funds | 125 |
Notes to Financial Statements
The Funds have also entered into an Amended and Restated Expense Limitation Agreement with the Adviser. Under the terms of the agreement, the Adviser will waive its management fee and/or reimburse a Fund for certain operating expenses, subject to certain excluded expenses, in excess of the agreed upon rate through April 30, 2024. 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, 2023 through April 30, 2024 | Effective May 1, 2022 through April 30, 2023 | Effective May 1, 2023 through April 30, 2024 | Effective May 1, 2022 through April 30, 2023 | Effective May 1, 2023 through April 30, 2024 | Effective May 1, 2022 through April 30, 2023 | ||||||||||||||||||
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 Value | N/A | N/A | 0.75 | % | 0.75 | % | 0.70 | % | 0.70 | % | ||||||||||||||
Small-Mid Cap Core | N/A | N/A | 0.95 | % | 0.95 | % | 0.90 | % | 0.90 | % | ||||||||||||||
Small-Mid Cap Growth | 1.24 | % | 1.35 | % | 0.99 | % | 1.10 | % | 0.94 | % | 1.05 | % | ||||||||||||
Small-Mid Cap Value | N/A | N/A | 0.85 | %1,2 | N/A | 0.80 | %1,2 | N/A | ||||||||||||||||
Small Cap Growth | 1.24 | % | 1.50 | % | 0.99 | % | 1.25 | % | 0.94 | % | 1.20 | % | ||||||||||||
Small Cap Value | 1.15 | % | 1.15 | % | 0.89 | % | 0.89 | % | 0.85 | % | 0.85 | % | ||||||||||||
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 | % | 1.24 | % | 0.99 | % | 0.99 | % | 0.94 | % | 0.94 | % | ||||||||||||
Institutional International Growth | N/A | N/A | N/A | N/A | 0.94 | % | 0.94 | % | ||||||||||||||||
International Small Cap Growth | 1.35 | % | 1.55 | % | 1.10 | % | 1.30 | % | 1.05 | % | 1.25 | % | ||||||||||||
Emerging Markets Leaders | 1.24 | % | 1.24 | % | 0.99 | % | 0.99 | % | 0.94 | % | 0.94 | % | ||||||||||||
Emerging Markets Growth | 1.24 | % | 1.24 | % | 0.99 | % | 0.99 | % | 0.94 | % | 0.94 | % | ||||||||||||
Emerging Markets ex China Growth | N/A | N/A | 0.99 | % | 0.99 | %3 | 0.94 | % | 0.94 | %3 | ||||||||||||||
Emerging Markets Small Cap Growth | 1.40 | % | 1.55 | % | 1.15 | % | 1.30 | % | 1.10 | % | 1.25 | % | ||||||||||||
China Growth | N/A | N/A | 0.99 | % | 0.99 | % | 0.94 | % | 0.94 | % | ||||||||||||||
Emerging Markets Debt | N/A | N/A | 0.70 | % | 0.70 | % | 0.65 | % | 0.65 | % |
1 | Effective August 17, 2023 (Commencement of Operations). |
2 | Effective through April 30, 2025. |
3 | Effective July 29, 2022 (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 December 31, 2023 were as follows (in thousands):
Fund | Available for Recoupment | Expiration of Recoupment | ||||
Mid Cap Value | $222 | March 16, 2025 | ||||
Small-Mid Cap Value | 58 | August 17, 2026 | ||||
Emerging Markets ex China Growth | 357 | July 29, 2025 | ||||
China Growth | 360 | August 27, 2024 | ||||
Emerging Markets Debt | 640 | May 25, 2024 |
126 | Annual Report | December 31, 2023 |
Notes to Financial Statements
(b) Underwriting and Distribution Services Agreements
Pursuant to separate Underwriting and Distribution Agreements, WBC is the principal underwriter and distributor for the continuous offering of shares of the Trust and acts as agent of the Trust in the sale of its shares. The Underwriting Agreement provides that the Distributor will use its best efforts to distribute the Trust’s shares. The Distributor is not compensated under the Underwriting Agreement.
Each Fund, except the Mid Cap Value, Small-Mid Cap Core, Small-Mid Cap Value, Emerging Markets ex China Growth, 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.
(5) Investment Transactions
Investment transactions, excluding U.S. government securities and short-term securities, for the year ended December 31, 2023, were as follows (in thousands):
Fund | Purchases | Sales | ||||||
Growth | $ | 79,441 | $ | 102,005 | ||||
Large Cap Growth | 691,696 | 601,220 | ||||||
Mid Cap Value | 476 | 707 | ||||||
Small-Mid Cap Core | 98,158 | 64,685 | ||||||
Small-Mid Cap Growth | 961,705 | 1,283,070 | ||||||
Small-Mid Cap Value (a) | 1,990 | 510 | ||||||
Small Cap Growth | 451,243 | 336,881 | ||||||
Small Cap Value | 327,712 | 337,077 | ||||||
Global Leaders | 34,912 | 45,352 | ||||||
International Leaders | 520,988 | 562,947 | ||||||
International Growth | 598,203 | 842,735 | ||||||
Institutional International Growth | 386,127 | 508,181 | ||||||
International Small Cap Growth | 83,467 | 106,325 | ||||||
Emerging Markets Leaders | 129,075 | 233,486 | ||||||
Emerging Markets Growth | 520,567 | 427,678 | ||||||
Emerging Markets ex China Growth | 14,904 | 9,898 | ||||||
Emerging Markets Small Cap Growth | 410,363 | 417,409 | ||||||
China Growth | 1,907 | 1,556 | ||||||
Emerging Markets Debt | 52,575 | 47,550 |
(a) | For the period from August 17, 2023 (Commencement of Operations) to December 31, 2023. |
(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 derivative instruments held as of December 31, 2023 as disclosed in each Fund’s Portfolios of Investments, are representative of each Fund’s derivative instrument trading activity during the year ended December 31, 2023.
December 31, 2023 | William Blair Funds | 127 |
Notes to Financial Statements
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 Emerging Markets Debt 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 Emerging Markets Debt Fund with various counterparties and allow the Emerging Markets Debt Fund to close out and net its total exposure to a counterparty in the event of a default.
Forward Foreign Currency Contracts
The Global Equity, International Equity and Emerging Markets Debt Funds may enter into forward foreign currency contracts. When entering into a forward foreign currency contract, a Fund agrees to receive or deliver a fixed quantity of foreign currency for an agreed-upon price on an agreed future date. A Fund’s net equity therein, representing unrealized gain or loss on the contracts as measured by the difference between the forward foreign exchange rates at the dates of entry into the contracts and the forward rates at the reporting date, is included in the Statement of Assets and Liabilities as unrealized appreciation/depreciation on forward foreign currency contracts. Realized and unrealized gains and losses are included in the Statement of Operations. These instruments may involve market risk, credit risk, or both kinds of risks in excess of the amount recognized in the Statement of Assets and Liabilities. Risks arise from the possible inability of counterparties to meet the terms of their contracts and from the price movements in currencies.
Swap Contracts
Swap agreements may include total return, interest rate, securities index, commodity, security, currency exchange rate, credit default index, volatility and variance swaps. Cleared swaps are transacted through futures commission merchants that are members of central clearing houses with the clearing house serving as a central counterparty similar to transactions in futures contracts. In a standard “swap” transaction, two parties agree to exchange the returns (or differentials in rates of return) earned or realized on particular predetermined investments or instruments. The gross returns to be exchanged or “swapped” between the parties are calculated with respect to a “notional amount” (i.e., the change in the value of a particular dollar amount invested, for example, at a particular interest rate, in a particular foreign currency, or in a “basket” of securities representing a particular index). Swap agreements are subject to the risk that the counterparty to the swap will default on its obligation to pay a Fund and the risk that a Fund will not be able to meet its obligations to pay the counterparty to the swap. Swap agreements may also involve fees, commissions or other costs that may reduce a Fund’s gains from a swap agreement or may cause a Fund to lose money. To the extent permitted by its investment policies and restrictions, a Fund may invest in the following types of swaps:
Credit Default Swaps—A Fund may invest in credit default swaps as a means of “buying” credit protection (i.e., attempting to mitigate the risk of default or credit quality deterioration in some portion of a Fund’s holdings) or “selling” credit protection (i.e., attempting to gain exposure to an underlying issuer’s credit quality characteristics without directly investing in that issuer). A credit default swap is a contract between a buyer and a seller of protection against a pre-defined credit event (e.g., a ratings downgrade or default) on an underlying reference obligation, which may be a single debt instrument or baskets or indices of securities. Under current regulatory requirements, a Fund may be a buyer or seller of a credit default swap. As a seller of protection on credit default swap agreements, a Fund will generally receive from the buyer of protection a fixed rate of income throughout the term of the swap provided that there is no credit event. A Fund adds leverage to its portfolio because the Fund is subject to investment exposure on the notional amount of the swap. The maximum potential amount of future payments that a Fund as a seller of protection could be required to make under a credit default swap agreement equals the notional amount of the agreement. Notional amounts of each individual credit default swap agreement outstanding as of the period end for which a Fund is the seller of protection are disclosed in the Fund’s Portfolio of Investments. These potential amounts would be partially offset by any recovery values of the respective referenced obligations, upfront payments received upon entering into the agreement, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the same Fund for the same referenced entity or entities. For credit default swap contracts on credit indices, the quoted market prices and resulting values serve as an indicator of the payment performance risk. Increasing market values, in absolute terms when compared to the notional amount of the swap, typically represent deterioration of the referenced entities’ credit soundness and a greater likelihood or risk of default or other credit event occurring as defined under the terms of the swap.
128 | Annual Report | December 31, 2023 |
Notes to Financial Statements
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.
The following table presents the value of financial derivative instruments, by Fund and primary risk exposure, as of December 31, 2023, 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) | $85 | Payable for variation margin on centrally cleared swaps(1) | $160 | ||||||||
Currency | Unrealized appreciation on forward foreign currency contracts | — | Unrealized depreciation on forward foreign currency contracts | 40 | ||||||||
Interest rate | Receivable for variation margin on centrally cleared swaps(1) | 382 | Payable for variation margin on centrally cleared swaps(1) | 209 |
(1) | The table above includes cumulative appreciation/(depreciation) on centrally cleared swaps as reported in the Fund’s Portfolio of Investments. Receivable/payable for variation margin on centrally cleared swaps as reported in the 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 year ended December 31, 2023 (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 | $ (98 | ) | Swaps | $(84 | ) | ||||||
Currency | Forward foreign currency contracts | 40 | Forward foreign currency contracts | (34 | ) | |||||||
Interest rate | Swaps | (396 | ) | Swaps | 194 |
The following table is a summary by counterparty of the derivative instruments and collateral pledged/(received) included in the Fund’s Statement of Assets and Liabilities at December 31, 2023 (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. | $ | — | $ | — | $ | (40 | ) | $ | (40 | ) | $ | (40 | ) | $ | — | $ | (40 | ) | ||||||||||
$ | — | $ | — | $ | (40 | ) | $ | (40 | ) |
December 31, 2023 | William Blair Funds | 129 |
Notes to Financial Statements
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.
(7) Fund Share Transactions
The following tables summarize the activity in capital shares of each Fund for the year ended December 31, 2023 (in thousands):
Class N | ||||||||||||||||||||||||||||||||
Dollars | Shares | |||||||||||||||||||||||||||||||
Fund | Sales | Reinvest | Redemptions | Total | Sales | Reinvest | Redemptions | Total | ||||||||||||||||||||||||
Growth | $ | 4,252 | $ | 3,599 | $ | 6,032 | $ | 1,819 | 434 | 376 | 634 | 176 | ||||||||||||||||||||
Large Cap Growth | 16,848 | — | 39,379 | (22,531 | ) | 875 | — | 2,050 | (1,175 | ) | ||||||||||||||||||||||
Small-Mid Cap Growth | 8,860 | 8,508 | 28,569 | (11,201 | ) | 346 | 333 | 1,122 | (443 | ) | ||||||||||||||||||||||
Small Cap Growth | 11,663 | 2,189 | 21,123 | (7,271 | ) | 449 | 81 | 819 | (289 | ) | ||||||||||||||||||||||
Small Cap Value | 464 | 75 | 783 | (244 | ) | 17 | 3 | 28 | (8 | ) | ||||||||||||||||||||||
Global Leaders | 881 | 503 | 2,660 | (1,276 | ) | 59 | 34 | 179 | (86 | ) | ||||||||||||||||||||||
International Leaders | 4,849 | 64 | 10,929 | (6,016 | ) | 264 | 3 | 593 | (326 | ) | ||||||||||||||||||||||
International Growth | 5,950 | 9,672 | 56,886 | (41,264 | ) | 224 | 356 | 2,138 | (1,558 | ) | ||||||||||||||||||||||
International Small Cap Growth | 24 | 9 | 327 | (294 | ) | 2 | 1 | 29 | (26 | ) | ||||||||||||||||||||||
Emerging Markets Leaders | 2,038 | 8 | 2,171 | (125 | ) | 239 | 1 | 257 | (17 | ) | ||||||||||||||||||||||
Emerging Markets Growth | 11,707 | 35 | 14,091 | (2,349 | ) | 1,100 | 3 | 1,308 | (205 | ) | ||||||||||||||||||||||
Emerging Markets Small Cap Growth | 1,822 | 2 | 1,721 | 103 | 101 | — | 95 | 6 | ||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||
Dollars | Shares | |||||||||||||||||||||||||||||||
Fund | Sales | Reinvest | Redemptions | Total | Sales | Reinvest | Redemptions | Total | ||||||||||||||||||||||||
Growth | $ | 4,742 | $ | 13,575 | $ | 25,017 | $ | (6,700 | ) | 391 | 1,078 | 2,022 | (553 | ) | ||||||||||||||||||
Large Cap Growth | 354,428 | — | 269,597 | 84,831 | 17,533 | — | 12,664 | 4,869 | ||||||||||||||||||||||||
Mid Cap Value | 1 | 1 | — | 2 | — | — | — | — | ||||||||||||||||||||||||
Small-Mid Cap Core | 18,885 | 141 | 16,079 | 2,947 | 1,309 | 9 | 1,124 | 194 | ||||||||||||||||||||||||
Small-Mid Cap Growth | 193,616 | 103,605 | 503,290 | (206,069 | ) | 6,954 | 3,716 | 18,125 | (7,455 | ) | ||||||||||||||||||||||
Small-Mid Cap Value (a) | 80 | — | — | 80 | 8 | — | — | 8 | ||||||||||||||||||||||||
Small Cap Growth | 177,891 | 6,557 | 92,150 | 92,298 | 5,831 | 204 | 3,022 | 3,013 | ||||||||||||||||||||||||
Small Cap Value | 108,222 | 25,229 | 130,635 | 2,816 | 3,800 | 856 | 4,638 | 18 | ||||||||||||||||||||||||
Global Leaders | 2,164 | 4,820 | 10,335 | (3,351 | ) | 145 | 319 | 706 | (242 | ) | ||||||||||||||||||||||
International Leaders | 115,369 | 1,802 | 117,724 | (553 | ) | 6,260 | 94 | 6,470 | (116 | ) | ||||||||||||||||||||||
International Growth | 133,882 | 35,091 | 264,406 | (95,433 | ) | 4,850 | 1,249 | 9,621 | (3,522 | ) | ||||||||||||||||||||||
International Small Cap Growth | 11,022 | 861 | 19,435 | (7,552 | ) | 971 | 71 | 1,711 | (669 | ) | ||||||||||||||||||||||
Emerging Markets Leaders | 3,079 | 105 | 19,943 | (16,759 | ) | 359 | 12 | 2,366 | (1,995 | ) | ||||||||||||||||||||||
Emerging Markets Growth | 79,866 | 856 | 97,685 | (16,963 | ) | 7,251 | 75 | 8,913 | (1,587 | ) | ||||||||||||||||||||||
Emerging Markets ex China Growth | 2,593 | 23 | 130 | 2,486 | 253 | 2 | 12 | 243 | ||||||||||||||||||||||||
Emerging Markets Small Cap Growth | 36,577 | 332 | 35,416 | 1,493 | 2,081 | 17 | 1,994 | 104 | ||||||||||||||||||||||||
China Growth | 525 | 1 | 754 | (228 | ) | 89 | — | 135 | (46 | ) | ||||||||||||||||||||||
Emerging Markets Debt | 4,154 | 119 | 2,113 | 2,160 | 560 | 16 | 294 | 282 |
(a) | For the period from August 17, 2023 (Commencement of Operations) to December 31, 2023. |
130 | Annual Report | December 31, 2023 |
Notes to Financial Statements
Institutional/Class R6 | ||||||||||||||||||||||||||||||||
Dollars | Shares | |||||||||||||||||||||||||||||||
Fund | Sales | Reinvest | Redemptions | Total | Sales | Reinvest | Redemptions | Total | ||||||||||||||||||||||||
Growth | $ | 10,861 | $ | 3,966 | $ | 6,973 | $ | 7,854 | 848 | 313 | 558 | 603 | ||||||||||||||||||||
Large Cap Growth | 165,787 | — | 142,282 | 23,505 | 7,783 | — | 6,409 | 1,374 | ||||||||||||||||||||||||
Mid Cap Value | 132 | 21 | 350 | (197 | ) | 14 | 2 | 38 | (22 | ) | ||||||||||||||||||||||
Small-Mid Cap Core | 40,944 | 176 | 11,555 | 29,565 | 2,767 | 12 | 812 | 1,967 | ||||||||||||||||||||||||
Small-Mid Cap Growth | 72,910 | 32,345 | 83,090 | 22,165 | 2,602 | 1,156 | 3,008 | 750 | ||||||||||||||||||||||||
Small-Mid Cap Value (a) | 1,675 | 7 | 250 | 1,432 | 167 | 1 | 27 | 141 | ||||||||||||||||||||||||
Small Cap Growth | 65,310 | 2,553 | 19,468 | 48,395 | 2,121 | 79 | 640 | 1,560 | ||||||||||||||||||||||||
Small Cap Value | 39,225 | 10,592 | 43,961 | 5,856 | 1,364 | 359 | 1,549 | 174 | ||||||||||||||||||||||||
Global Leaders | 1,288 | 998 | 2,269 | 17 | 88 | 66 | 153 | 1 | ||||||||||||||||||||||||
International Leaders | 28,823 | 2,827 | 66,338 | (34,688 | ) | 1,538 | 147 | 3,627 | (1,942 | ) | ||||||||||||||||||||||
International Growth | 6,808 | 4,644 | 32,975 | (21,523 | ) | 251 | 165 | 1,201 | (785 | ) | ||||||||||||||||||||||
Institutional International Growth | 59,867 | 22,254 | 166,508 | (84,387 | ) | 4,360 | 1,576 | 12,298 | (6,362 | ) | ||||||||||||||||||||||
International Small Cap Growth | 1,946 | 936 | 19,572 | (16,690 | ) | 166 | 77 | 1,670 | (1,427 | ) | ||||||||||||||||||||||
Emerging Markets Leaders | 22,219 | 2,140 | 121,429 | (97,070 | ) | 2,652 | 251 | 14,260 | (11,357 | ) | ||||||||||||||||||||||
Emerging Markets Growth | 210,785 | 2,957 | 108,421 | 105,321 | 18,636 | 257 | 9,641 | 9,252 | ||||||||||||||||||||||||
Emerging Markets ex China Growth | 2,694 | 161 | 242 | 2,613 | 272 | 14 | 24 | 262 | ||||||||||||||||||||||||
Emerging Markets Small Cap Growth | 27,778 | 779 | 34,000 | (5,443 | ) | 1,540 | 40 | 1,885 | (305 | ) | ||||||||||||||||||||||
China Growth | 1,019 | 9 | 418 | 610 | 197 | 2 | 74 | 125 | ||||||||||||||||||||||||
Emerging Markets Debt | 275 | 3,160 | 918 | 2,517 | 37 | 421 | 125 | 333 | ||||||||||||||||||||||||
Net Change in Net Assets Relating to Fund Share Activity | ||||||||||||||||||||||||||||||||
Dollars | Shares | |||||||||||||||||||||||||||||||
Fund | Sales | Reinvest | Redemptions | Total | Sales | Reinvest | Redemptions | Total | ||||||||||||||||||||||||
Growth | $ | 19,855 | $ | 21,140 | $ | 38,022 | $ | 2,973 | 1,673 | 1,767 | 3,214 | 226 | ||||||||||||||||||||
Large Cap Growth | 537,063 | — | 451,258 | 85,805 | 26,191 | — | 21,123 | 5,068 | ||||||||||||||||||||||||
Mid Cap Value | 133 | 22 | 350 | (195 | ) | 14 | 2 | 38 | (22 | ) | ||||||||||||||||||||||
Small-Mid Cap Core | 59,829 | 317 | 27,634 | 32,512 | 4,076 | 21 | 1,936 | 2,161 | ||||||||||||||||||||||||
Small-Mid Cap Growth | 275,386 | 144,458 | 614,949 | (195,105 | ) | 9,902 | 5,205 | 22,255 | (7,148 | ) | ||||||||||||||||||||||
Small-Mid Cap Value (a) | 1,755 | 7 | 250 | 1,512 | 175 | 1 | 27 | 149 | ||||||||||||||||||||||||
Small Cap Growth | 254,864 | 11,299 | 132,741 | 133,422 | 8,401 | 364 | 4,481 | 4,284 | ||||||||||||||||||||||||
Small Cap Value | 147,911 | 35,896 | 175,379 | 8,428 | 5,181 | 1,218 | 6,215 | 184 | ||||||||||||||||||||||||
Global Leaders | 4,333 | 6,321 | 15,264 | (4,610 | ) | 292 | 419 | 1,038 | (327 | ) | ||||||||||||||||||||||
International Leaders | 149,041 | 4,693 | 194,991 | (41,257 | ) | 8,062 | 244 | 10,690 | (2,384 | ) | ||||||||||||||||||||||
International Growth | 146,640 | 49,407 | 354,267 | (158,220 | ) | 5,325 | 1,770 | 12,960 | (5,865 | ) | ||||||||||||||||||||||
Institutional International Growth | 59,867 | 22,254 | 166,508 | (84,387 | ) | 4,360 | 1,576 | 12,298 | (6,362 | ) | ||||||||||||||||||||||
International Small Cap Growth | 12,992 | 1,806 | 39,334 | (24,536 | ) | 1,139 | 149 | 3,410 | (2,122 | ) | ||||||||||||||||||||||
Emerging Markets Leaders | 27,336 | 2,253 | 143,543 | (113,954 | ) | 3,250 | 264 | 16,883 | (13,369 | ) | ||||||||||||||||||||||
Emerging Markets Growth | 302,358 | 3,848 | 220,197 | 86,009 | 26,987 | 335 | 19,862 | 7,460 | ||||||||||||||||||||||||
Emerging Markets ex China Growth | 5,287 | 184 | 372 | 5,099 | 525 | 16 | 36 | 505 | ||||||||||||||||||||||||
Emerging Markets Small Cap Growth | 66,177 | 1,113 | 71,137 | (3,847 | ) | 3,722 | 57 | 3,974 | (195 | ) | ||||||||||||||||||||||
China Growth | 1,544 | 10 | 1,172 | 382 | 286 | 2 | 209 | 79 | ||||||||||||||||||||||||
Emerging Markets Debt | 4,429 | 3,279 | 3,031 | 4,677 | 597 | 437 | 419 | 615 |
(a) | For the period from August 17, 2023 (Commencement of Operations) to December 31, 2023. |
December 31, 2023 | William Blair Funds | 131 |
Notes to Financial Statements
The following tables summarize the activity in capital shares of each Fund for the year ended December 31, 2022 (in thousands):
Class N | ||||||||||||||||||||||||||||||||
Dollars | Shares | |||||||||||||||||||||||||||||||
Fund | Sales | Reinvest | Redemptions | Total | Sales | Reinvest | Redemptions | Total | ||||||||||||||||||||||||
Growth | $ | 3,300 | $ | 1,034 | $ | 5,457 | $ | (1,123 | ) | 306 | 128 | 551 | (117 | ) | ||||||||||||||||||
Large Cap Growth | 66,244 | 986 | 69,880 | (2,650 | ) | 3,478 | 59 | 3,754 | (217 | ) | ||||||||||||||||||||||
Small-Mid Cap Growth | 16,581 | 3,843 | 88,421 | (67,997 | ) | 628 | 158 | 3,380 | (2,594 | ) | ||||||||||||||||||||||
Small Cap Growth | 27,063 | 4,597 | 53,914 | (22,254 | ) | 973 | 190 | 2,036 | (873 | ) | ||||||||||||||||||||||
Small Cap Value | 438 | 182 | 729 | (109 | ) | 13 | 7 | 24 | (4 | ) | ||||||||||||||||||||||
Global Leaders | 224 | 165 | 1,635 | (1,246 | ) | 14 | 12 | 113 | (87 | ) | ||||||||||||||||||||||
International Leaders | 18,462 | 68 | 15,537 | 2,993 | 960 | 4 | 827 | 137 | ||||||||||||||||||||||||
International Growth | 156,713 | 22,957 | 61,189 | 118,481 | 5,684 | 905 | 2,302 | 4,287 | ||||||||||||||||||||||||
International Small Cap Growth | 29 | — | 761 | (732 | ) | 3 | — | 64 | (61 | ) | ||||||||||||||||||||||
Emerging Markets Leaders | 3,090 | 9 | 3,673 | (574 | ) | 317 | 1 | 371 | (53 | ) | ||||||||||||||||||||||
Emerging Markets Growth | 10,620 | 20 | 15,860 | (5,220 | ) | 873 | 2 | 1,296 | (421 | ) | ||||||||||||||||||||||
Emerging Markets Small Cap Growth | 584 | 145 | 521 | 208 | 27 | 9 | 27 | 9 | ||||||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||
Dollars | Shares | |||||||||||||||||||||||||||||||
Fund | Sales | Reinvest | Redemptions | Total | Sales | Reinvest | Redemptions | Total | ||||||||||||||||||||||||
Growth | $ | 11,551 | $ | 4,580 | $ | 86,472 | $ | (70,341 | ) | 938 | 443 | 7,693 | (6,312 | ) | ||||||||||||||||||
Large Cap Growth | 606,323 | 5,568 | 281,678 | 330,213 | 28,937 | 313 | 14,763 | 14,487 | ||||||||||||||||||||||||
Mid Cap Value (a) | 108 | 1 | 32 | 77 | 11 | — | 3 | 8 | ||||||||||||||||||||||||
Small-Mid Cap Core | 71,963 | — | 27,550 | 44,413 | 4,695 | — | 1,985 | 2,710 | ||||||||||||||||||||||||
Small-Mid Cap Growth | 280,513 | 48,171 | 693,533 | (364,849 | ) | 9,846 | 1,832 | 25,066 | (13,388 | ) | ||||||||||||||||||||||
Small Cap Growth | 79,330 | 10,263 | 90,795 | (1,202 | ) | 2,593 | 357 | 3,045 | (95 | ) | ||||||||||||||||||||||
Small Cap Value | 109,607 | 53,312 | 295,065 | (132,146 | ) | 3,575 | 1,928 | 9,693 | (4,190 | ) | ||||||||||||||||||||||
Global Leaders | 4,757 | 1,493 | 22,285 | (16,035 | ) | 315 | 110 | 1,638 | (1,213 | ) | ||||||||||||||||||||||
International Leaders | 230,076 | 617 | 286,493 | (55,800 | ) | 12,574 | 35 | 15,639 | (3,030 | ) | ||||||||||||||||||||||
International Growth | 293,273 | 71,737 | 528,810 | (163,800 | ) | 10,345 | 2,738 | 18,956 | (5,873 | ) | ||||||||||||||||||||||
International Small Cap Growth | 40,252 | 182 | 30,096 | 10,338 | 3,553 | 16 | 2,676 | 893 | ||||||||||||||||||||||||
Emerging Markets Leaders | 26,985 | 283 | 27,281 | (13 | ) | 2,914 | 34 | 3,152 | (204 | ) | ||||||||||||||||||||||
Emerging Markets Growth | 190,957 | 269 | 130,228 | 60,998 | 15,421 | 25 | 10,961 | 4,485 | ||||||||||||||||||||||||
Emerging Markets ex China Growth (b) | 10 | — | — | 10 | 1 | — | — | 1 | ||||||||||||||||||||||||
Emerging Markets Small Cap Growth | 44,207 | 4,873 | 59,722 | (10,642 | ) | 2,315 | 292 | 3,214 | (607 | ) | ||||||||||||||||||||||
China Growth | 12 | — | 3,449 | (3,437 | ) | 2 | — | 503 | (501 | ) | ||||||||||||||||||||||
Emerging Markets Debt | 415 | 74 | 708 | (219 | ) | 49 | 9 | 89 | (31 | ) |
(a) | For the period from March 16, 2022 (Commencement of Operations) to December 31, 2022. |
(b) | For the period from July 29, 2022 (Commencement of Operations) to December 31, 2022. |
132 | Annual Report | December 31, 2023 |
Notes to Financial Statements
Institutional/Class R6 | ||||||||||||||||||||||||||||||||
Dollars | Shares | |||||||||||||||||||||||||||||||
Fund | Sales | Reinvest | Redemptions | Total | Sales | Reinvest | Redemptions | Total | ||||||||||||||||||||||||
Growth | $ | 21,865 | $ | 1,050 | $ | 3,850 | $ | 19,065 | 2,107 | 101 | 352 | 1,856 | ||||||||||||||||||||
Large Cap Growth | 136,096 | 1,909 | 47,467 | 90,538 | 6,978 | 107 | 2,430 | 4,655 | ||||||||||||||||||||||||
Mid Cap Value (a) | 1,553 | 15 | 1 | 1,567 | 154 | 2 | — | 156 | ||||||||||||||||||||||||
Small-Mid Cap Core | 37,092 | — | 6,100 | 30,992 | 2,713 | — | 445 | 2,268 | ||||||||||||||||||||||||
Small-Mid Cap Growth | 212,256 | 12,737 | 80,061 | 144,932 | 8,130 | 483 | 2,950 | 5,663 | ||||||||||||||||||||||||
Small Cap Growth | 30,980 | 3,659 | 18,653 | 15,986 | 1,018 | 127 | 604 | 541 | ||||||||||||||||||||||||
Small Cap Value | 119,683 | 33,263 | 627,183 | (474,237 | ) | 3,861 | 1,203 | 18,688 | (13,624 | ) | ||||||||||||||||||||||
Global Leaders | 9,906 | 296 | 1,407 | 8,795 | 782 | 22 | 100 | 704 | ||||||||||||||||||||||||
International Leaders | 206,838 | 1,129 | 54,743 | 153,224 | 9,990 | 63 | 3,031 | 7,022 | ||||||||||||||||||||||||
International Growth | 89,936 | 9,603 | 36,161 | 63,378 | 3,526 | 366 | 1,288 | 2,604 | ||||||||||||||||||||||||
Institutional International Growth | 142,332 | 56,157 | 156,966 | 41,523 | 10,211 | 4,307 | 10,970 | 3,548 | ||||||||||||||||||||||||
International Small Cap Growth | 3,475 | 331 | 28,031 | (24,225 | ) | 295 | 30 | 2,414 | (2,089 | ) | ||||||||||||||||||||||
Emerging Markets Leaders | 70,039 | 3,109 | 63,904 | 9,244 | 7,781 | 374 | 7,384 | 771 | ||||||||||||||||||||||||
Emerging Markets Growth | 112,007 | 667 | 203,283 | (90,609 | ) | 9,621 | 62 | 16,080 | (6,397 | ) | ||||||||||||||||||||||
Emerging Markets ex China Growth (b) | 19,580 | — | 5,597 | 13,983 | 1,970 | — | 587 | 1,383 | ||||||||||||||||||||||||
Emerging Markets Small Cap Growth | 76,818 | 9,965 | 102,458 | (15,675 | ) | 4,023 | 595 | 5,344 | (726 | ) | ||||||||||||||||||||||
China Growth | 408 | 1 | 127 | 282 | 64 | — | 18 | 46 | ||||||||||||||||||||||||
Emerging Markets Debt | 3,932 | 3,077 | 382 | 6,627 | 473 | 398 | 49 | 822 | ||||||||||||||||||||||||
Net Change in Net Assets Relating to Fund Share Activity | ||||||||||||||||||||||||||||||||
Dollars | Shares | |||||||||||||||||||||||||||||||
Fund | Sales | Reinvest | Redemptions | Total | Sales | Reinvest | Redemptions | Total | ||||||||||||||||||||||||
Growth | $ | 36,716 | $ | 6,664 | $ | 95,779 | $ | (52,399 | ) | 3,351 | 672 | 8,596 | (4,573 | ) | ||||||||||||||||||
Large Cap Growth | 808,663 | 8,463 | 399,025 | 418,101 | 39,393 | 479 | 20,947 | 18,925 | ||||||||||||||||||||||||
Mid Cap Value (a) | 1,661 | 16 | 33 | 1,644 | 165 | 2 | 3 | 164 | ||||||||||||||||||||||||
Small-Mid Cap Core | 109,055 | — | 33,650 | 75,405 | 7,408 | — | 2,430 | 4,978 | ||||||||||||||||||||||||
Small-Mid Cap Growth | 509,350 | 64,751 | 862,015 | (287,914 | ) | 18,604 | 2,473 | 31,396 | (10,319 | ) | ||||||||||||||||||||||
Small Cap Growth | 137,373 | 18,519 | 163,362 | (7,470 | ) | 4,584 | 674 | 5,685 | (427 | ) | ||||||||||||||||||||||
Small Cap Value | 229,728 | 86,757 | 922,977 | (606,492 | ) | 7,449 | 3,138 | 28,405 | (17,818 | ) | ||||||||||||||||||||||
Global Leaders | 14,887 | 1,954 | 25,327 | (8,486 | ) | 1,111 | 144 | 1,851 | (596 | ) | ||||||||||||||||||||||
International Leaders | 455,376 | 1,814 | 356,773 | 100,417 | 23,524 | 102 | 19,497 | 4,129 | ||||||||||||||||||||||||
International Growth | 539,922 | 104,297 | 626,160 | 18,059 | 19,555 | 4,009 | 22,546 | 1,018 | ||||||||||||||||||||||||
Institutional International Growth | 142,332 | 56,157 | 156,966 | 41,523 | 10,211 | 4,307 | 10,970 | 3,548 | ||||||||||||||||||||||||
International Small Cap Growth | 43,756 | 513 | 58,888 | (14,619 | ) | 3,851 | 46 | 5,154 | (1,257 | ) | ||||||||||||||||||||||
Emerging Markets Leaders | 100,114 | 3,401 | 94,858 | 8,657 | 11,012 | 409 | 10,907 | 514 | ||||||||||||||||||||||||
Emerging Markets Growth | 313,584 | 956 | 349,371 | (34,831 | ) | 25,915 | 89 | 28,337 | (2,333 | ) | ||||||||||||||||||||||
Emerging Markets ex China Growth (b) | 19,590 | — | 5,597 | 13,993 | 1,971 | — | 587 | 1,384 | ||||||||||||||||||||||||
Emerging Markets Small Cap Growth | 121,609 | 14,983 | 162,701 | (26,109 | ) | 6,365 | 896 | 8,585 | (1,324 | ) | ||||||||||||||||||||||
China Growth | 420 | 1 | 3,576 | (3,155 | ) | 66 | — | 521 | (455 | ) | ||||||||||||||||||||||
Emerging Markets Debt | 4,347 | 3,151 | 1,090 | 6,408 | 522 | 407 | 138 | 791 |
(a) | For the period from March 16, 2022 (Commencement of Operations) to December 31, 2022. |
(b) | For the period from July 29, 2022 (Commencement of Operations) to December 31, 2022. |
(8) Subsequent Events
The Funds have evaluated subsequent events through the date of issuance of the Funds’ financial statements and have determined there is no impact to the Funds’ financial statements.
December 31, 2023 | William Blair Funds | 133 |
Financial Highlights — For a share outstanding throughout each period
Growth Fund
Class N | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net asset value, beginning of year | $ | 7.95 | $ | 11.81 | $ | 11.15 | $ | 9.45 | $ | 7.91 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.04 | ) | (0.05 | ) | (0.08 | ) | (0.05 | ) | (0.03 | ) | ||||||||||
Net realized and unrealized gain (loss) on investments | 3.03 | (3.44 | ) | 2.49 | 3.43 | 2.54 | ||||||||||||||
Total from investment operations | 2.99 | (3.49 | ) | 2.41 | 3.38 | 2.51 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | — | — | — | — | — | |||||||||||||||
Net realized gain | 1.24 | 0.37 | 1.75 | 1.68 | 0.97 | |||||||||||||||
Total distributions | 1.24 | 0.37 | 1.75 | 1.68 | 0.97 | |||||||||||||||
Net asset value, end of year | $ | 9.70 | $ | 7.95 | $ | 11.81 | $ | 11.15 | $ | 9.45 | ||||||||||
Total return (%) | 37.76 | (29.65 | ) | 22.09 | 35.97 | 31.97 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.26 | 1.24 | 1.21 | 1.26 | 1.24 | |||||||||||||||
Expenses, net of waivers and reimbursements | 1.20 | 1.20 | 1.20 | 1.20 | 1.20 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | (0.49 | ) | (0.60 | ) | (0.67 | ) | (0.55 | ) | (0.35 | ) | ||||||||||
Net investment income (loss), net of waivers and reimbursements | (0.43 | ) | (0.56 | ) | (0.66 | ) | (0.49 | ) | (0.31 | ) | ||||||||||
Class N net assets at the end of the year (in thousands) | $ | 30,789 | $ | 23,829 | $ | 36,807 | $ | 35,494 | $ | 32,710 | ||||||||||
Portfolio turnover rate (%) | 37 | 41 | 30 | 46 | 39 | |||||||||||||||
Class I | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net asset value, beginning of year | $ | 10.15 | $ | 14.91 | $ | 13.64 | $ | 11.25 | $ | 9.25 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.02 | ) | (0.04 | ) | (0.05 | ) | (0.03 | ) | (0.00 | )^ | ||||||||||
Net realized and unrealized gain (loss) on investments | 3.88 | (4.35 | ) | 3.07 | 4.10 | 2.97 | ||||||||||||||
Total from investment operations | 3.86 | (4.39 | ) | 3.02 | 4.07 | 2.97 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | — | — | — | — | — | |||||||||||||||
Net realized gain | 1.24 | 0.37 | 1.75 | 1.68 | 0.97 | |||||||||||||||
Total distributions | 1.24 | 0.37 | 1.75 | 1.68 | 0.97 | |||||||||||||||
Net asset value, end of year | $ | 12.77 | $ | 10.15 | $ | 14.91 | $ | 13.64 | $ | 11.25 | ||||||||||
Total return (%) | 38.15 | (29.52 | ) | 22.54 | 36.35 | 32.32 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses | 0.91 | 0.92 | 0.89 | 0.93 | 0.92 | |||||||||||||||
Net investment income (loss) | (0.14 | ) | (0.29 | ) | (0.35 | ) | (0.23 | ) | (0.03 | ) | ||||||||||
Class I net assets at the end of the year (in thousands) | $ | 164,166 | $ | 136,051 | $ | 293,900 | $ | 249,716 | $ | 220,660 | ||||||||||
Portfolio turnover rate (%) | 37 | 41 | 30 | 46 | 39 |
^ | Amount is less than $0.005 per share. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
134 | Annual Report | December 31, 2023 |
Financial Highlights — For a share outstanding throughout each period
Growth Fund
Class R6 | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019(a) | ||||||||||||||||
Net asset value, beginning of year | $ | 10.19 | $ | 14.95 | $ | 13.67 | $ | 11.26 | $ | 11.06 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.01 | ) | (0.02 | ) | (0.04 | ) | (0.03 | ) | (0.00 | )^ | ||||||||||
Net realized and unrealized gain (loss) on investments | 3.90 | (4.37 | ) | 3.07 | 4.12 | 1.17 | ||||||||||||||
Total from investment operations | 3.89 | (4.39 | ) | 3.03 | 4.09 | 1.17 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | — | — | — | — | — | |||||||||||||||
Net realized gain | 1.24 | 0.37 | 1.75 | 1.68 | 0.97 | |||||||||||||||
Total distributions | 1.24 | 0.37 | 1.75 | 1.68 | 0.97 | |||||||||||||||
Net asset value, end of year | $ | 12.84 | $ | 10.19 | $ | 14.95 | $ | 13.67 | $ | 11.26 | ||||||||||
Total return (%)* | 38.19 | (29.44 | ) | 22.55 | 36.50 | 10.75 | ||||||||||||||
Ratios to average daily net assets (%)**: | ||||||||||||||||||||
Expenses | 0.87 | 0.87 | 0.84 | 0.87 | 0.88 | |||||||||||||||
Net investment income (loss) | (0.10 | ) | (0.18 | ) | (0.29 | ) | (0.23 | ) | (0.06 | ) | ||||||||||
Class R6 net assets at the end of the year (in thousands) | $ | 44,437 | $ | 29,128 | $ | 14,993 | $ | 12,041 | $ | 217 | ||||||||||
Portfolio turnover rate (%)* | 37 | 41 | 30 | 46 | 39 |
(a) | For the period from May 2, 2019 (Commencement of Operations) to December 31, 2019. |
* | Rates are not annualized for periods less than a year. |
** | Rates are annualized for periods less than a year. |
^ | Amount is less than $0.005 per share. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
December 31, 2023 | William Blair Funds | 135 |
Financial Highlights — For a share outstanding throughout each period
Large Cap Growth Fund
Class N | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net asset value, beginning of year | $ | 16.38 | $ | 24.49 | $ | 20.03 | $ | 15.27 | $ | 11.99 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.02 | ) | (0.03 | ) | (0.07 | ) | 0.01 | 0.00 | ^ | |||||||||||
Net realized and unrealized gain (loss) on investments | 6.59 | (7.96 | ) | 5.65 | 5.52 | 4.29 | ||||||||||||||
Total from investment operations | 6.57 | (7.99 | ) | 5.58 | 5.53 | 4.29 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | — | — | — | 0.00 | ^ | 0.01 | ||||||||||||||
Net realized gain | — | 0.12 | 1.12 | 0.77 | 1.00 | |||||||||||||||
Total distributions | — | 0.12 | 1.12 | 0.77 | 1.01 | |||||||||||||||
Net asset value, end of year | $ | 22.95 | $ | 16.38 | $ | 24.49 | $ | 20.03 | $ | 15.27 | ||||||||||
Total return (%) | 40.11 | (32.61 | ) | 28.03 | 36.30 | 36.00 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.04 | 1.03 | 1.05 | 1.09 | 1.12 | |||||||||||||||
Expenses, net of waivers and reimbursements | 0.90 | 0.90 | 0.90 | 0.90 | 0.95 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | (0.24 | ) | (0.28 | ) | (0.46 | ) | (0.15 | ) | (0.14 | ) | ||||||||||
Net investment income (loss), net of waivers and reimbursements | (0.10 | ) | (0.15 | ) | (0.31 | ) | 0.04 | 0.03 | ||||||||||||
Class N net assets at the end of the year (in thousands) | $ | 158,351 | $ | 132,225 | $ | 203,014 | $ | 138,152 | $ | 65,314 | ||||||||||
Portfolio turnover rate (%) | 43 | 29 | 26 | 35 | 37 | |||||||||||||||
Class I | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net asset value, beginning of year | $ | 17.54 | $ | 26.18 | $ | 21.29 | $ | 16.19 | $ | 12.66 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.03 | 0.03 | (0.02 | ) | 0.06 | 0.04 | ||||||||||||||
Net realized and unrealized gain (loss) on investments | 7.07 | (8.53 | ) | 6.03 | 5.85 | 4.54 | ||||||||||||||
Total from investment operations | 7.10 | (8.50 | ) | 6.01 | 5.91 | 4.58 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | — | 0.02 | — | 0.04 | 0.05 | |||||||||||||||
Net realized gain | — | 0.12 | 1.12 | 0.77 | 1.00 | |||||||||||||||
Total distributions | — | 0.14 | 1.12 | 0.81 | 1.05 | |||||||||||||||
Net asset value, end of year | $ | 24.64 | $ | 17.54 | $ | 26.18 | $ | 21.29 | $ | 16.19 | ||||||||||
Total return (%) | 40.48 | (32.46 | ) | 28.39 | 36.59 | 36.35 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 0.78 | 0.79 | 0.75 | 0.80 | 0.81 | |||||||||||||||
Expenses, net of waivers and reimbursements | 0.65 | 0.65 | 0.65 | 0.65 | 0.70 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | 0.02 | (0.01 | ) | (0.17 | ) | 0.16 | 0.16 | |||||||||||||
Net investment income (loss), net of waivers and reimbursements | 0.15 | 0.13 | (0.07 | ) | 0.31 | 0.27 | ||||||||||||||
Class I net assets at the end of the year (in thousands) | $ | 1,106,857 | $ | 702,441 | $ | 669,060 | $ | 397,370 | $ | 236,930 | ||||||||||
Portfolio turnover rate (%) | 43 | 29 | 26 | 35 | 37 |
^ | Amount is less than $0.005 per share. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
136 | Annual Report | December 31, 2023 |
Financial Highlights — For a share outstanding throughout each period
Large Cap Growth Fund
Class R6 | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019(a) | ||||||||||||||||
Net asset value, beginning of year | $ | 17.53 | $ | 26.16 | $ | 21.27 | $ | 16.17 | $ | 15.12 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.04 | 0.04 | (0.00 | )^ | 0.01 | 0.04 | ||||||||||||||
Net realized and unrealized gain (loss) on investments | 7.07 | (8.52 | ) | 6.01 | 5.91 | 2.07 | ||||||||||||||
Total from investment operations | 7.11 | (8.48 | ) | 6.01 | 5.92 | 2.11 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | — | 0.03 | 0.00 | ^ | 0.05 | 0.06 | ||||||||||||||
Net realized gain | — | 0.12 | 1.12 | 0.77 | 1.00 | |||||||||||||||
Total distributions | — | 0.15 | 1.12 | 0.82 | 1.06 | |||||||||||||||
Net asset value, end of year | $ | 24.64 | $ | 17.53 | $ | 26.16 | $ | 21.27 | $ | 16.17 | ||||||||||
Total return (%)* | 40.56 | (32.41 | ) | 28.42 | 36.70 | 14.13 | ||||||||||||||
Ratios to average daily net assets (%)**: | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 0.65 | 0.66 | 0.67 | 0.70 | 0.71 | |||||||||||||||
Expenses, net of waivers and reimbursements | 0.60 | 0.60 | 0.60 | 0.60 | 0.60 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | 0.14 | 0.13 | (0.08 | ) | (0.03 | ) | 0.22 | |||||||||||||
Net investment income (loss), net of waivers and reimbursements | 0.19 | 0.19 | (0.01 | ) | 0.07 | 0.33 | ||||||||||||||
Class R6 net assets at the end of the year (in thousands) | $ | 368,894 | $ | 238,354 | $ | 233,946 | $ | 177,347 | $ | 1,590 | ||||||||||
Portfolio turnover rate (%)* | 43 | 29 | 26 | 35 | 37 |
(a) | For the period from May 2, 2019 (Commencement of Operations) to December 31, 2019. |
* | Rates are not annualized for periods less than a year. |
** | Rates are annualized for periods less than a year. |
^ | Amount is less than $0.005 per share. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
December 31, 2023 | William Blair Funds | 137 |
Financial Highlights — For a share outstanding throughout each period
Mid Cap Value Fund
Class I | ||||||||||
Years Ended December 31, | ||||||||||
2023 | 2022(a) | |||||||||
Net asset value, beginning of year | $ | 9.19 | $ | 10.00 | ||||||
Income (loss) from investment operations: | ||||||||||
Net investment income (loss) | 0.14 | 0.12 | ||||||||
Net realized and unrealized gain (loss) on investments | 1.07 | (0.83 | ) | |||||||
Total from investment operations | 1.21 | (0.71 | ) | |||||||
Less distributions from: | ||||||||||
Net investment income | 0.15 | 0.10 | ||||||||
Net realized gain | — | — | ||||||||
Total distributions | 0.15 | 0.10 | ||||||||
Net asset value, end of year | $ | 10.25 | $ | 9.19 | ||||||
Total return (%)* | 13.21 | (7.13 | ) | |||||||
Ratios to average daily net assets (%)**: | ||||||||||
Expenses, before waivers and reimbursements | 9.08 | 8.52 | ||||||||
Expenses, net of waivers and reimbursements | 0.75 | 0.75 | ||||||||
Net investment income (loss), before waivers and reimbursements | (6.85 | ) | (6.14 | ) | ||||||
Net investment income (loss), net of waivers and reimbursements | 1.48 | 1.63 | ||||||||
Class I net assets at the end of the year (in thousands) | $ | 85 | $ | 76 | ||||||
Portfolio turnover rate (%)* | 32 | 21 | ||||||||
Class R6 | ||||||||||
Years Ended December 31, | ||||||||||
2023 | 2022(a) | |||||||||
Net asset value, beginning of year | $ | 9.19 | $ | 10.00 | ||||||
Income (loss) from investment operations: | ||||||||||
Net investment income (loss) | 0.14 | 0.11 | ||||||||
Net realized and unrealized gain (loss) on investments | 1.08 | (0.82 | ) | |||||||
Total from investment operations | 1.22 | (0.71 | ) | |||||||
Less distributions from: | ||||||||||
Net investment income | 0.16 | 0.10 | ||||||||
Net realized gain | — | — | ||||||||
Total distributions | 0.16 | 0.10 | ||||||||
Net asset value, end of year | $ | 10.25 | $ | 9.19 | ||||||
Total return (%)* | 13.14 | (7.01 | ) | |||||||
Ratios to average daily net assets (%)**: | ||||||||||
Expenses, before waivers and reimbursements | 9.02 | 8.52 | ||||||||
Expenses, net of waivers and reimbursements | 0.70 | 0.70 | ||||||||
Net investment income (loss), before waivers and reimbursements | (6.82 | ) | (6.35 | ) | ||||||
Net investment income (loss), net of waivers and reimbursements | 1.50 | 1.47 | ||||||||
Class R6 net assets at the end of the year (in thousands) | $ | 1,373 | $ | 1,431 | ||||||
Portfolio turnover rate (%)* | 32 | 21 |
(a) | For the period from March 16, 2022 (Commencement of Operations) to December 31, 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.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
138 | Annual Report | December 31, 2023 |
Financial Highlights — For a share outstanding throughout each period
Small-Mid Cap Core Fund
Class I | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019(a) | ||||||||||||||||
Net asset value, beginning of year | $ | 13.52 | $ | 16.31 | $ | 12.88 | $ | 10.68 | $ | 10.00 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.04 | (0.01 | ) | (0.03 | ) | 0.00 | ^ | 0.02 | ||||||||||||
Net realized and unrealized gain (loss) on investments | 1.75 | (2.78 | ) | 3.46 | 2.20 | 0.67 | ||||||||||||||
Total from investment operations | 1.79 | (2.79 | ) | 3.43 | 2.20 | 0.69 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.02 | — | — | — | 0.01 | |||||||||||||||
Net realized gain | — | — | — | — | — | |||||||||||||||
Total distributions | 0.02 | — | — | — | 0.01 | |||||||||||||||
Net asset value, end of year | $ | 15.29 | $ | 13.52 | $ | 16.31 | $ | 12.88 | $ | 10.68 | ||||||||||
Total return (%)* | 13.26 | (17.11 | ) | 26.63 | 20.60 | 6.87 | ||||||||||||||
Ratios to average daily net assets (%)**: | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.16 | 1.21 | 1.25 | 1.22 | 3.92 | |||||||||||||||
Expenses, net of waivers and reimbursements | 0.95 | 0.95 | 0.95 | 0.95 | 0.95 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | 0.09 | (0.32 | ) | (0.47 | ) | (0.27 | ) | (2.23 | ) | |||||||||||
Net investment income (loss), net of waivers and reimbursements | 0.30 | (0.06 | ) | (0.17 | ) | 0.00 | 0.74 | |||||||||||||
Class I net assets at the end of the year (in thousands) | $ | 101,972 | $ | 87,540 | $ | 61,433 | $ | 22,958 | $ | 1,655 | ||||||||||
Portfolio turnover rate (%)* | 41 | 50 | 45 | 244 | 12 | |||||||||||||||
Class R6 | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019(a) | ||||||||||||||||
Net asset value, beginning of year | $ | 13.53 | $ | 16.32 | $ | 12.88 | $ | 10.68 | $ | 10.00 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.05 | 0.00 | ^ | (0.02 | ) | 0.01 | 0.01 | |||||||||||||
Net realized and unrealized gain (loss) on investments | 1.75 | (2.79 | ) | 3.46 | 2.19 | 0.68 | ||||||||||||||
Total from investment operations | 1.80 | (2.79 | ) | 3.44 | 2.20 | 0.69 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.03 | — | — | 0.00 | ^ | 0.01 | ||||||||||||||
Net realized gain | — | — | — | — | — | |||||||||||||||
Total distributions | 0.03 | — | — | 0.00 | ^ | 0.01 | ||||||||||||||
Net asset value, end of year | $ | 15.30 | $ | 13.53 | $ | 16.32 | $ | 12.88 | $ | 10.68 | ||||||||||
Total return (%)* | 13.30 | (17.10 | ) | 26.71 | 20.60 | 6.88 | ||||||||||||||
Ratios to average daily net assets (%)**: | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.01 | 1.05 | 1.16 | 1.07 | 3.92 | |||||||||||||||
Expenses, net of waivers and reimbursements | 0.90 | 0.90 | 0.90 | 0.90 | 0.90 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | 0.24 | (0.14 | ) | (0.37 | ) | (0.11 | ) | (2.71 | ) | |||||||||||
Net investment income (loss), net of waivers and reimbursements | 0.35 | 0.01 | (0.11 | ) | 0.06 | 0.31 | ||||||||||||||
Class R6 net assets at the end of the year (in thousands) | $ | 94,208 | $ | 56,681 | $ | 31,347 | $ | 7,087 | $ | 4,933 | ||||||||||
Portfolio turnover rate (%)* | 41 | 50 | 45 | 244 | 12 |
(a) | For the period from October 1, 2019 (Commencement of Operations) to December 31, 2019. |
* | Rates are not annualized for periods less than a year. |
** | Rates are annualized for periods less than a year. |
^ | Amount is less than $0.005 per share. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
December 31, 2023 | William Blair Funds | 139 |
Financial Highlights — For a share outstanding throughout each period
Small-Mid Cap Growth Fund
Class N | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net asset value, beginning of year | $ | 23.96 | $ | 32.27 | $ | 32.96 | $ | 25.41 | $ | 20.97 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.16 | ) | (0.23 | ) | (0.36 | ) | (0.24 | ) | (0.20 | ) | ||||||||||
Net realized and unrealized gain (loss) on investments | 4.35 | (7.22 | ) | 2.90 | 8.37 | 6.56 | ||||||||||||||
Total from investment operations | 4.19 | (7.45 | ) | 2.54 | 8.13 | 6.36 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | — | — | — | — | — | |||||||||||||||
Net realized gain | 2.23 | 0.86 | 3.23 | 0.58 | 1.92 | |||||||||||||||
Total distributions | 2.23 | 0.86 | 3.23 | 0.58 | 1.92 | |||||||||||||||
Net asset value, end of year | $ | 25.92 | $ | 23.96 | $ | 32.27 | $ | 32.96 | $ | 25.41 | ||||||||||
Total return (%) | 17.64 | (23.11 | ) | 8.27 | 32.04 | 30.41 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.39 | 1.43 | 1.43 | 1.45 | 1.43 | |||||||||||||||
Expenses, net of waivers and reimbursements | 1.28 | 1.35 | 1.35 | 1.35 | 1.35 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | (0.72 | ) | (0.96 | ) | (1.10 | ) | (1.01 | ) | (0.88 | ) | ||||||||||
Net investment income (loss), net of waivers and reimbursements | (0.61 | ) | (0.88 | ) | (1.02 | ) | (0.91 | ) | (0.80 | ) | ||||||||||
Class N net assets at the end of the year (in thousands) | $ | 107,791 | $ | 110,241 | $ | 232,166 | $ | 314,572 | $ | 334,017 | ||||||||||
Portfolio turnover rate (%) | 49 | 49 | 38 | 55 | 56 | |||||||||||||||
Class I | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net asset value, beginning of year | $ | 25.91 | $ | 34.72 | $ | 35.13 | $ | 26.99 | $ | 22.12 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.10 | ) | (0.18 | ) | (0.29 | ) | (0.19 | ) | (0.14 | ) | ||||||||||
Net realized and unrealized gain (loss) on investments | 4.71 | (7.77 | ) | 3.11 | 8.91 | 6.93 | ||||||||||||||
Total from investment operations | 4.61 | (7.95 | ) | 2.82 | 8.72 | 6.79 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | — | — | — | — | — | |||||||||||||||
Net realized gain | 2.23 | 0.86 | 3.23 | 0.58 | 1.92 | |||||||||||||||
Total distributions | 2.23 | 0.86 | 3.23 | 0.58 | 1.92 | |||||||||||||||
Net asset value, end of year | $ | 28.29 | $ | 25.91 | $ | 34.72 | $ | 35.13 | $ | 26.99 | ||||||||||
Total return (%) | 17.93 | (22.92 | ) | 8.56 | 32.35 | 30.77 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.14 | 1.17 | 1.16 | 1.17 | 1.16 | |||||||||||||||
Expenses, net of waivers and reimbursements | 1.03 | 1.10 | 1.10 | 1.10 | 1.10 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | (0.47 | ) | (0.70 | ) | (0.83 | ) | (0.73 | ) | (0.59 | ) | ||||||||||
Net investment income (loss), net of waivers and reimbursements | (0.36 | ) | (0.63 | ) | (0.77 | ) | (0.66 | ) | (0.53 | ) | ||||||||||
Class I net assets at the end of the year (in thousands) | $ | 1,437,622 | $ | 1,509,931 | $ | 2,487,862 | $ | 3,139,290 | $ | 2,531,823 | ||||||||||
Portfolio turnover rate (%) | 49 | 49 | 38 | 55 | 56 |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
140 | Annual Report | December 31, 2023 |
Financial Highlights — For a share outstanding throughout each period
Small-Mid Cap Growth Fund
Class R6 | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019(a) | ||||||||||||||||
Net asset value, beginning of year | $ | 25.99 | $ | 34.79 | $ | 35.18 | $ | 27.01 | $ | 26.76 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.09 | ) | (0.15 | ) | (0.26 | ) | (0.17 | ) | (0.09 | ) | ||||||||||
Net realized and unrealized gain (loss) on investments | 4.72 | (7.79 | ) | 3.10 | 8.92 | 2.26 | ||||||||||||||
Total from investment operations | 4.63 | (7.94 | ) | 2.84 | 8.75 | 2.17 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | — | — | — | — | — | |||||||||||||||
Net realized gain | 2.23 | 0.86 | 3.23 | 0.58 | 1.92 | |||||||||||||||
Total distributions | 2.23 | 0.86 | 3.23 | 0.58 | 1.92 | |||||||||||||||
Net asset value, end of year | $ | 28.39 | $ | 25.99 | $ | 34.79 | $ | 35.18 | $ | 27.01 | ||||||||||
Total return (%)* | 17.95 | (22.84 | ) | 8.60 | 32.44 | 8.17 | ||||||||||||||
Ratios to average daily net assets (%)**: | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.01 | 1.05 | 1.03 | 1.05 | 1.05 | |||||||||||||||
Expenses, net of waivers and reimbursements | 0.97 | 1.05 | 1.03 | 1.05 | 1.05 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | (0.36 | ) | (0.55 | ) | (0.69 | ) | (0.61 | ) | (0.46 | ) | ||||||||||
Net investment income (loss), net of waivers and reimbursements | (0.32 | ) | (0.55 | ) | (0.69 | ) | (0.61 | ) | (0.46 | ) | ||||||||||
Class R6 net assets at the end of the year (in thousands) | $ | 449,782 | $ | 392,153 | $ | 328,034 | $ | 123,220 | $ | 39,974 | ||||||||||
Portfolio turnover rate (%)* | 49 | 49 | 38 | 55 | 56 |
(a) | For the period from May 2, 2019 (Commencement of Operations) to December 31, 2019. |
* | Rates are not annualized for periods less than a year. |
** | Rates are annualized for periods less than a year. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
December 31, 2023 | William Blair Funds | 141 |
Financial Highlights — For a share outstanding throughout each period
Small-Mid Cap Value Fund
Class I | |||||
Period Ended December 31, | |||||
2023(a) | |||||
Net asset value, beginning of year | $ | 10.00 | |||
Income (loss) from investment operations: | |||||
Net investment income (loss) | 0.05 | ||||
Net realized and unrealized gain (loss) on investments | 0.60 | ||||
Total from investment operations | 0.65 | ||||
Less distributions from: | |||||
Net investment income | 0.05 | ||||
Net realized gain | — | ||||
Total distributions | 0.05 | ||||
Net asset value, end of year | $ | 10.60 | |||
Total return (%)* | 6.45 | ||||
Ratios to average daily net assets (%)**: | |||||
Expenses, before waivers and reimbursements | 10.69 | ||||
Expenses, net of waivers and reimbursements | 0.85 | ||||
Net investment income (loss), before waivers and reimbursements | (8.48 | ) | |||
Net investment income (loss), net of waivers and reimbursements | 1.36 | ||||
Class I net assets at the end of the year (in thousands) | $ | 84 | |||
Portfolio turnover rate (%)* | 33 | ||||
Class R6 | |||||
Period Ended December 31, | |||||
2023(a) | |||||
Net asset value, beginning of year | $ | 10.00 | |||
Income (loss) from investment operations: | |||||
Net investment income (loss) | 0.05 | ||||
Net realized and unrealized gain (loss) on investments | 0.60 | ||||
Total from investment operations | 0.65 | ||||
Less distributions from: | |||||
Net investment income | 0.05 | ||||
Net realized gain | — | ||||
Total distributions | 0.05 | ||||
Net asset value, end of year | $ | 10.60 | |||
Total return (%)* | 6.50 | ||||
Ratios to average daily net assets (%)**: | |||||
Expenses, before waivers and reimbursements | 10.66 | ||||
Expenses, net of waivers and reimbursements | 0.80 | ||||
Net investment income (loss), before waivers and reimbursements | (8.49 | ) | |||
Net investment income (loss), net of waivers and reimbursements | 1.37 | ||||
Class R6 net assets at the end of the year (in thousands) | $ | 1,497 | |||
Portfolio turnover rate (%)* | 33 |
(a) | For the period from August 17, 2023 (Commencement of Operations) to December 31, 2023. |
* | Rates are not annualized for periods less than a year. |
** | Rates are annualized for periods less than a year. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
142 | Annual Report | December 31, 2023 |
Financial Highlights — For a share outstanding throughout each period
Small Cap Growth Fund
Class N | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net asset value, beginning of year | $ | 24.01 | $ | 31.90 | $ | 34.49 | $ | 27.75 | $ | 23.23 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.18 | ) | (0.27 | ) | (0.45 | ) | (0.29 | ) | (0.24 | ) | ||||||||||
Net realized and unrealized gain (loss) on investments | 4.03 | (6.61 | ) | 4.56 | 10.86 | 5.40 | ||||||||||||||
Total from investment operations | 3.85 | (6.88 | ) | 4.11 | 10.57 | 5.16 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | — | — | — | — | — | |||||||||||||||
Net realized gain | 0.50 | 1.01 | 6.70 | 3.83 | 0.64 | |||||||||||||||
Total distributions | 0.50 | 1.01 | 6.70 | 3.83 | 0.64 | |||||||||||||||
Net asset value, end of year | $ | 27.36 | $ | 24.01 | $ | 31.90 | $ | 34.49 | $ | 27.75 | ||||||||||
Total return (%) | 16.06 | (21.59 | ) | 12.91 | 38.32 | 22.26 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.46 | 1.55 | 1.56 | 1.58 | 1.54 | |||||||||||||||
Expenses, net of waivers and reimbursements | 1.33 | 1.50 | 1.50 | 1.50 | 1.50 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | (0.83 | ) | (1.08 | ) | (1.24 | ) | (1.10 | ) | (0.92 | ) | ||||||||||
Net investment income (loss), net of waivers and reimbursements | (0.70 | ) | (1.03 | ) | (1.18 | ) | (1.02 | ) | (0.88 | ) | ||||||||||
Class N net assets at the end of the year (in thousands) | $ | 122,370 | $ | 114,324 | $ | 179,739 | $ | 180,635 | $ | 180,706 | ||||||||||
Portfolio turnover rate (%) | 55 | 45 | 49 | 71 | 51 | |||||||||||||||
Class I | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net asset value, beginning of year | $ | 28.49 | $ | 37.52 | $ | 39.36 | $ | 31.19 | $ | 25.99 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.13 | ) | (0.24 | ) | (0.41 | ) | (0.24 | ) | (0.19 | ) | ||||||||||
Net realized and unrealized gain (loss) on investments | 4.78 | (7.78 | ) | 5.27 | 12.24 | 6.03 | ||||||||||||||
Total from investment operations | 4.65 | (8.02 | ) | 4.86 | 12.00 | 5.84 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | — | — | — | — | — | |||||||||||||||
Net realized gain | 0.50 | 1.01 | 6.70 | 3.83 | 0.64 | |||||||||||||||
Total distributions | 0.50 | 1.01 | 6.70 | 3.83 | 0.64 | |||||||||||||||
Net asset value, end of year | $ | 32.64 | $ | 28.49 | $ | 37.52 | $ | 39.36 | $ | 31.19 | ||||||||||
Total return (%) | 16.35 | (21.39 | ) | 13.22 | 38.68 | 22.51 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.18 | 1.28 | 1.25 | 1.30 | 1.27 | |||||||||||||||
Expenses, net of waivers and reimbursements | 1.07 | 1.25 | 1.25 | 1.25 | 1.25 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | (0.54 | ) | (0.81 | ) | (0.93 | ) | (0.82 | ) | (0.65 | ) | ||||||||||
Net investment income (loss), net of waivers and reimbursements | (0.43 | ) | (0.78 | ) | (0.93 | ) | (0.77 | ) | (0.63 | ) | ||||||||||
Class I net assets at the end of the year (in thousands) | $ | 445,483 | $ | 303,016 | $ | 402,629 | $ | 390,511 | $ | 423,881 | ||||||||||
Portfolio turnover rate (%) | 55 | 45 | 49 | 71 | 51 |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
December 31, 2023 | William Blair Funds | 143 |
Financial Highlights — For a share outstanding throughout each period
Small Cap Growth Fund
Class R6 | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019(a) | ||||||||||||||||
Net asset value, beginning of year | $ | 28.57 | $ | 37.60 | $ | 39.40 | $ | 31.20 | $ | 31.00 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.12 | ) | (0.21 | ) | (0.37 | ) | (0.23 | ) | (0.11 | ) | ||||||||||
Net realized and unrealized gain (loss) on investments | 4.81 | (7.81 | ) | 5.27 | 12.26 | 0.95 | ||||||||||||||
Total from investment operations | 4.69 | (8.02 | ) | 4.90 | 12.03 | 0.84 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | — | — | — | — | — | |||||||||||||||
Net realized gain | 0.50 | 1.01 | 6.70 | 3.83 | 0.64 | |||||||||||||||
Total distributions | 0.50 | 1.01 | 6.70 | 3.83 | 0.64 | |||||||||||||||
Net asset value, end of year | $ | 32.76 | $ | 28.57 | $ | 37.60 | $ | 39.40 | $ | 31.20 | ||||||||||
Total return (%)* | 16.44 | (21.35 | ) | 13.31 | 38.76 | 2.75 | ||||||||||||||
Ratios to average daily net assets (%)**: | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.06 | 1.18 | 1.16 | 1.19 | 1.18 | |||||||||||||||
Expenses, net of waivers and reimbursements | 1.02 | 1.18 | 1.16 | 1.19 | 1.18 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | (0.42 | ) | (0.70 | ) | (0.84 | ) | (0.71 | ) | (0.51 | ) | ||||||||||
Net investment income (loss), net of waivers and reimbursements | (0.38 | ) | (0.70 | ) | (0.84 | ) | (0.71 | ) | (0.51 | ) | ||||||||||
Class R6 net assets at the end of the year (in thousands) | $ | 180,058 | $ | 112,497 | $ | 127,710 | $ | 103,462 | $ | 69,950 | ||||||||||
Portfolio turnover rate (%)* | 55 | 45 | 49 | 71 | 51 |
(a) | For the period from May 2, 2019 (Commencement of Operations) to December 31, 2019. |
* | Rates are not annualized for periods less than a year. |
** | Rates are annualized for periods less than a year. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
144 | Annual Report | December 31, 2023 |
Financial Highlights — For a share outstanding throughout each period
Small Cap Value Fund
Class N | ||||||||||||||||||
Years Ended December 31, | Period Ended December 31, | Period Ended October 31, | ||||||||||||||||
2023 | 2022 | 2021(b) | 2021(a) | |||||||||||||||
Net asset value, beginning of year | $ | 27.76 | $ | 33.63 | $ | 33.49 | $ | 32.15 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||
Net investment income (loss) | 0.21 | 0.15 | 0.00 | ^ | 0.05 | |||||||||||||
Net realized and unrealized gain (loss) on investments | 2.72 | (3.98 | ) | 1.37 | 1.29 | |||||||||||||
Total from investment operations | 2.93 | (3.83 | ) | 1.37 | 1.34 | |||||||||||||
Less distributions from: | ||||||||||||||||||
Net investment income | 0.18 | 0.12 | — | — | ||||||||||||||
Net realized gain | 0.73 | 1.92 | 1.23 | — | ||||||||||||||
Total distributions | 0.91 | 2.04 | 1.23 | — | ||||||||||||||
Net asset value, end of year | $ | 29.78 | $ | 27.76 | $ | 33.63 | $ | 33.49 | ||||||||||
Total return (%)* | 10.59 | (11.36 | ) | 4.24 | 4.17 | |||||||||||||
Ratios to average daily net assets (%)**: | ||||||||||||||||||
Expenses, before waivers and reimbursements | 1.11 | 1.15 | 1.26 | 1.17 | ||||||||||||||
Expenses, net of waivers and reimbursements | 1.11 | 1.15 | 1.15 | 1.15 | ||||||||||||||
Net investment income (loss), before waivers and reimbursements | 0.76 | 0.48 | (0.05 | ) | 0.51 | |||||||||||||
Net investment income (loss), net of waivers and reimbursements | 0.76 | 0.48 | 0.06 | 0.53 | ||||||||||||||
Class N net assets at the end of the year (in thousands) | $ | 2,591 | $ | 2,648 | $ | 3,313 | $ | 9,805 | ||||||||||
Portfolio turnover rate (%)* | 27 | 25 | 7 | 35 |
Class I | ||||||||||||||||||||||||||
Years Ended December 31, | Period Ended December 31, | Years Ended October 31, | ||||||||||||||||||||||||
2023 | 2022 | 2021(b) | 2021 | 2020 | 2019 | |||||||||||||||||||||
Net asset value, beginning of year | $ | 27.72 | $ | 33.58 | $ | 33.52 | $ | 23.79 | $ | 28.84 | $ | 31.53 | ||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||
Net investment income (loss) | 0.28 | 0.22 | 0.03 | 0.18 | 0.09 | 0.18 | ||||||||||||||||||||
Net realized and unrealized gain (loss) on investments | 2.72 | (3.96 | ) | 1.35 | 12.91 | (3.89 | ) | 1.59 | ||||||||||||||||||
Total from investment operations | 3.00 | (3.74 | ) | 1.38 | 13.09 | (3.80 | ) | 1.77 | ||||||||||||||||||
Less distributions from: | ||||||||||||||||||||||||||
Net investment income | 0.25 | 0.20 | 0.09 | 0.11 | 0.07 | 0.15 | ||||||||||||||||||||
Net realized gain | 0.73 | 1.92 | 1.23 | 3.25 | 1.18 | 4.31 | ||||||||||||||||||||
Total distributions | 0.98 | 2.12 | 1.32 | 3.36 | 1.25 | 4.46 | ||||||||||||||||||||
Net asset value, end of year | $ | 29.74 | $ | 27.72 | $ | 33.58 | $ | 33.52 | $ | 23.79 | $ | 28.84 | ||||||||||||||
Total return (%)* | 10.86 | (11.12 | ) | 4.31 | 55.32 | (13.91 | ) | 8.60 | ||||||||||||||||||
Ratios to average daily net assets (%)**: | ||||||||||||||||||||||||||
Expenses, before waivers and reimbursements | 0.92 | 0.94 | 0.82 | 0.86 | 0.89 | 0.93 | ||||||||||||||||||||
Expenses, net of waivers and reimbursements | 0.89 | 0.89 | 0.82 | 0.86 | 0.89 | 0.93 | ||||||||||||||||||||
Net investment income (loss), before waivers and reimbursements | 0.95 | 0.67 | 0.55 | 0.52 | 0.37 | 0.63 | ||||||||||||||||||||
Net investment income (loss), net of waivers and reimbursements | 0.98 | 0.72 | 0.55 | 0.52 | 0.37 | 0.63 | ||||||||||||||||||||
Class I net assets at the end of the year (in thousands) | $ | 813,809 | $ | 758,104 | $ | 1,059,157 | $ | 1,143,150 | $ | 1,181,409 | $ | 908,831 | ||||||||||||||
Portfolio turnover rate (%)* | 27 | 25 | 7 | 35 | 27 | 31 |
(a) | For the period from July 17, 2021 (Commencement of Operations) to October 31, 2021. |
(b) | For the period from November 1, 2021 to December 31, 2021. |
* | Rates are not annualized for periods less than a year. |
** | Rates are annualized for periods less than a year. |
^ | Amount is less than $0.005 per share. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
December 31, 2023 | William Blair Funds | 145 |
Financial Highlights — For a share outstanding throughout each period
Small Cap Value Fund
Class R6 | ||||||||||||||||||
Years Ended December 31, | Period Ended December 31, | Period Ended October 31, | ||||||||||||||||
2023 | 2022 | 2021(b) | 2021(a) | |||||||||||||||
Net asset value, beginning of year | $ | 27.71 | $ | 33.58 | $ | 33.53 | $ | 32.15 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||
Net investment income (loss) | 0.30 | 0.26 | 0.03 | 0.06 | ||||||||||||||
Net realized and unrealized gain (loss) on investments | 2.73 | (3.98 | ) | 1.35 | 1.32 | |||||||||||||
Total from investment operations | 3.03 | (3.72 | ) | 1.38 | 1.38 | |||||||||||||
Less distributions from: | ||||||||||||||||||
Net investment income | 0.28 | 0.23 | 0.10 | — | ||||||||||||||
Net realized gain | 0.73 | 1.92 | 1.23 | — | ||||||||||||||
Total distributions | 1.01 | 2.15 | 1.33 | — | ||||||||||||||
Net asset value, end of year | $ | 29.73 | $ | 27.71 | $ | 33.58 | $ | 33.53 | ||||||||||
Total return (%)* | 10.96 | (11.06 | ) | 4.33 | 4.26 | |||||||||||||
Ratios to average daily net assets (%)**: | ||||||||||||||||||
Expenses | 0.79 | 0.81 | 0.78 | 0.78 | ||||||||||||||
Net investment income (loss) | 1.08 | 0.85 | 0.59 | 0.64 | ||||||||||||||
Class R6 net assets at the end of the year (in thousands) | $ | 491,646 | $ | 453,456 | $ | 1,006,928 | $ | 867,272 | ||||||||||
Portfolio turnover rate (%)* | 27 | 25 | 7 | 35 |
(a) | For the period from July 17, 2021 (Commencement of Operations) to October 31, 2021. |
(b) | For the period from November 1, 2021 to December 31, 2021. |
* | Rates are not annualized for periods less than a year. |
** | Rates are annualized for periods less than a year. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
146 | Annual Report | December 31, 2023 |
Financial Highlights — For a share outstanding throughout each period
Global Leaders Fund
Class N | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net asset value, beginning of year | $ | 13.24 | $ | 19.17 | $ | 17.41 | $ | 14.92 | $ | 11.47 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.02 | ) | (0.04 | ) | (0.11 | ) | (0.06 | ) | 0.01 | |||||||||||
Net realized and unrealized gain (loss) on investments | 3.01 | (5.61 | ) | 2.96 | 4.74 | 3.61 | ||||||||||||||
Total from investment operations | 2.99 | (5.65 | ) | 2.85 | 4.68 | 3.62 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | — | — | — | — | 0.03 | |||||||||||||||
Net realized gain | 1.02 | 0.28 | 1.09 | 2.19 | 0.14 | |||||||||||||||
Total distributions | 1.02 | 0.28 | 1.09 | 2.19 | 0.17 | |||||||||||||||
Net asset value, end of year | $ | 15.21 | $ | 13.24 | $ | 19.17 | $ | 17.41 | $ | 14.92 | ||||||||||
Total return (%) | 22.67 | (29.49 | ) | 16.55 | 31.50 | 31.57 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.42 | 1.45 | 1.38 | 1.45 | 1.39 | |||||||||||||||
Expenses, net of waivers and reimbursements | 1.15 | 1.15 | 1.15 | 1.15 | 1.20 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | (0.43 | ) | (0.60 | ) | (0.79 | ) | (0.67 | ) | (0.10 | ) | ||||||||||
Net investment income (loss), net of waivers and reimbursements | (0.16 | ) | (0.30 | ) | (0.56 | ) | (0.37 | ) | 0.09 | |||||||||||
Class N net assets at the end of the year (in thousands) | $ | 8,253 | $ | 8,317 | $ | 13,709 | $ | 11,861 | $ | 8,910 | ||||||||||
Portfolio turnover rate (%) | 36 | 15 | 18 | 27 | 27 | |||||||||||||||
Class I | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net asset value, beginning of year | $ | 13.35 | $ | 19.28 | $ | 17.47 | $ | 14.93 | $ | 11.47 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.01 | (0.01 | ) | (0.06 | ) | (0.01 | ) | 0.05 | ||||||||||||
Net realized and unrealized gain (loss) on investments | 3.05 | (5.63 | ) | 2.96 | 4.74 | 3.61 | ||||||||||||||
Total from investment operations | 3.06 | (5.64 | ) | 2.90 | 4.73 | 3.66 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.01 | 0.01 | — | 0.00 | ^ | 0.06 | ||||||||||||||
Net realized gain | 1.02 | 0.28 | 1.09 | 2.19 | 0.14 | |||||||||||||||
Total distributions | 1.03 | 0.29 | 1.09 | 2.19 | 0.20 | |||||||||||||||
Net asset value, end of year | $ | 15.38 | $ | 13.35 | $ | 19.28 | $ | 17.47 | $ | 14.93 | ||||||||||
Total return (%) | 22.99 | (29.28 | ) | 16.78 | 31.86 | 31.96 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.14 | 1.12 | 1.07 | 1.12 | 1.07 | |||||||||||||||
Expenses, net of waivers and reimbursements | 0.90 | 0.90 | 0.90 | 0.90 | 0.95 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | (0.17 | ) | (0.27 | ) | (0.49 | ) | (0.31 | ) | 0.22 | |||||||||||
Net investment income (loss), net of waivers and reimbursements | 0.07 | (0.05 | ) | (0.32 | ) | (0.09 | ) | 0.34 | ||||||||||||
Class I net assets at the end of the year (in thousands) | $ | 76,915 | $ | 69,987 | $ | 124,488 | $ | 107,375 | $ | 114,666 | ||||||||||
Portfolio turnover rate (%) | 36 | 15 | 18 | 27 | 27 |
^ | Amount is less than $0.005 per share. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
December 31, 2023 | William Blair Funds | 147 |
Financial Highlights — For a share outstanding throughout each period
Global Leaders Fund
Class R6 | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net asset value, beginning of year | $ | 13.35 | $ | 19.30 | $ | 17.47 | $ | 14.93 | $ | 11.47 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.02 | (0.01 | ) | (0.05 | ) | 0.02 | 0.06 | |||||||||||||
Net realized and unrealized gain (loss) on investments | 3.05 | (5.64 | ) | 2.97 | 4.72 | 3.61 | ||||||||||||||
Total from investment operations | 3.07 | (5.65 | ) | 2.92 | 4.74 | 3.67 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.01 | 0.02 | — | 0.01 | 0.07 | |||||||||||||||
Net realized gain | 1.02 | 0.28 | 1.09 | 2.19 | 0.14 | |||||||||||||||
Total distributions | 1.03 | 0.30 | 1.09 | 2.20 | 0.21 | |||||||||||||||
Net asset value, end of year | $ | 15.39 | $ | 13.35 | $ | 19.30 | $ | 17.47 | $ | 14.93 | ||||||||||
Total return (%) | 23.13 | (29.30 | ) | 16.90 | 31.91 | 32.02 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.05 | 1.05 | 0.99 | 1.06 | 1.01 | |||||||||||||||
Expenses, net of waivers and reimbursements | 0.85 | 0.85 | 0.85 | 0.85 | 0.90 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | (0.08 | ) | (0.30 | ) | (0.40 | ) | (0.10 | ) | 0.32 | |||||||||||
Net investment income (loss), net of waivers and reimbursements | 0.12 | (0.10 | ) | (0.26 | ) | 0.11 | 0.43 | |||||||||||||
Class R6 net assets at the end of the year (in thousands) | $ | 15,287 | $ | 13,255 | $ | 5,585 | $ | 2,946 | $ | 48,133 | ||||||||||
Portfolio turnover rate (%) | 36 | 15 | 18 | 27 | 27 |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
148 | Annual Report | December 31, 2023 |
Financial Highlights — For a share outstanding throughout each period
International Leaders Fund
Class N | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net asset value, beginning of year | $ | 17.28 | $ | 24.28 | $ | 22.69 | $ | 18.08 | $ | 13.80 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.05 | 0.04 | (0.12 | ) | (0.04 | ) | 0.09 | |||||||||||||
Net realized and unrealized gain (loss) on investments | 2.16 | (7.01 | ) | 2.35 | 4.82 | 4.25 | ||||||||||||||
Total from investment operations | 2.21 | (6.97 | ) | 2.23 | 4.78 | 4.34 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.04 | — | 0.00 | ^ | — | 0.06 | ||||||||||||||
Net realized gain | — | 0.03 | 0.64 | 0.17 | — | |||||||||||||||
Total distributions | 0.04 | 0.03 | 0.64 | 0.17 | 0.06 | |||||||||||||||
Net asset value, end of year | $ | 19.45 | $ | 17.28 | $ | 24.28 | $ | 22.69 | $ | 18.08 | ||||||||||
Total return (%) | 12.77 | (28.70 | ) | 9.93 | 26.45 | 31.46 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.26 | 1.26 | 1.30 | 1.31 | 1.32 | |||||||||||||||
Expenses, net of waivers and reimbursements | 1.15 | 1.15 | 1.15 | 1.15 | 1.18 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | 0.17 | 0.09 | (0.65 | ) | (0.39 | ) | 0.44 | |||||||||||||
Net investment income (loss), net of waivers and reimbursements | 0.28 | 0.20 | (0.50 | ) | (0.23 | ) | 0.58 | |||||||||||||
Class N net assets at the end of the year (in thousands) | $ | 34,162 | $ | 35,966 | $ | 47,234 | $ | 19,586 | $ | 11,163 | ||||||||||
Portfolio turnover rate (%) | 50 | 55 | 18 | 34 | 20 | |||||||||||||||
Class I | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net asset value, beginning of year | $ | 17.41 | $ | 24.41 | $ | 22.80 | $ | 18.13 | $ | 13.84 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.10 | 0.08 | (0.06 | ) | (0.00 | )^ | 0.12 | |||||||||||||
Net realized and unrealized gain (loss) on investments | 2.18 | (7.05 | ) | 2.36 | 4.85 | 4.27 | ||||||||||||||
Total from investment operations | 2.28 | (6.97 | ) | 2.30 | 4.85 | 4.39 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.09 | — | 0.05 | 0.01 | 0.10 | |||||||||||||||
Net realized gain | — | 0.03 | 0.64 | 0.17 | — | |||||||||||||||
Total distributions | 0.09 | 0.03 | 0.69 | 0.18 | 0.10 | |||||||||||||||
Net asset value, end of year | $ | 19.60 | $ | 17.41 | $ | 24.41 | $ | 22.80 | $ | 18.13 | ||||||||||
Total return (%) | 13.09 | (28.55 | ) | 10.17 | 26.77 | 31.76 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.04 | 1.04 | 0.99 | 1.01 | 1.01 | |||||||||||||||
Expenses, net of waivers and reimbursements | 0.90 | 0.90 | 0.90 | 0.90 | 0.93 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | 0.39 | 0.28 | (0.33 | ) | (0.11 | ) | 0.64 | |||||||||||||
Net investment income (loss), net of waivers and reimbursements | 0.53 | 0.42 | (0.24 | ) | (0.00 | ) | 0.72 | |||||||||||||
Class I net assets at the end of the year (in thousands) | $ | 413,373 | $ | 369,171 | $ | 591,500 | $ | 393,596 | $ | 181,617 | ||||||||||
Portfolio turnover rate (%) | 50 | 55 | 18 | 34 | 20 |
^ | Amount is less than $0.005 per share. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
December 31, 2023 | William Blair Funds | 149 |
Financial Highlights — For a share outstanding throughout each period
International Leaders Fund
Class R6 | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net asset value, beginning of year | $ | 17.42 | $ | 24.41 | $ | 22.80 | $ | 18.12 | $ | 13.83 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.11 | 0.09 | (0.04 | ) | 0.02 | 0.14 | ||||||||||||||
Net realized and unrealized gain (loss) on investments | 2.19 | (7.05 | ) | 2.35 | 4.85 | 4.26 | ||||||||||||||
Total from investment operations | 2.30 | (6.96 | ) | 2.31 | 4.87 | 4.40 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.10 | — | 0.06 | 0.02 | 0.11 | |||||||||||||||
Net realized gain | — | 0.03 | 0.64 | 0.17 | — | |||||||||||||||
Total distributions | 0.10 | 0.03 | 0.70 | 0.19 | 0.11 | |||||||||||||||
Net asset value, end of year | $ | 19.62 | $ | 17.42 | $ | 24.41 | $ | 22.80 | $ | 18.12 | ||||||||||
Total return (%) | 13.20 | (28.51 | ) | 10.22 | 26.88 | 31.83 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 0.91 | 0.92 | 0.91 | 0.92 | 0.93 | |||||||||||||||
Expenses, net of waivers and reimbursements | 0.85 | 0.85 | 0.85 | 0.85 | �� | 0.88 | ||||||||||||||
Net investment income (loss), before waivers and reimbursements | 0.52 | 0.44 | (0.24 | ) | 0.03 | 0.80 | ||||||||||||||
Net investment income (loss), net of waivers and reimbursements | 0.58 | 0.51 | (0.18 | ) | 0.10 | 0.85 | ||||||||||||||
Class R6 net assets at the end of the year (in thousands) | $ | 636,401 | $ | 599,084 | $ | 667,996 | $ | 687,171 | $ | 461,124 | ||||||||||
Portfolio turnover rate (%) | 50 | 55 | 18 | 34 | 20 |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
150 | Annual Report | December 31, 2023 |
Financial Highlights — For a share outstanding throughout each period
International Growth Fund
Class N | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net asset value, beginning of year | $ | 24.92 | $ | 37.57 | $ | 38.75 | $ | 29.68 | $ | 23.04 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.14 | 0.11 | (0.28 | ) | (0.16 | ) | 0.09 | |||||||||||||
Net realized and unrealized gain (loss) on investments | 3.61 | (10.78 | ) | 3.51 | 9.55 | 6.87 | ||||||||||||||
Total from investment operations | 3.75 | (10.67 | ) | 3.23 | 9.39 | 6.96 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.19 | 0.02 | — | 0.06 | 0.32 | |||||||||||||||
Net realized gain | 0.75 | 1.96 | 4.41 | 0.26 | — | |||||||||||||||
Total distributions | 0.94 | 1.98 | 4.41 | 0.32 | 0.32 | |||||||||||||||
Net asset value, end of year | $ | 27.73 | $ | 24.92 | $ | 37.57 | $ | 38.75 | $ | 29.68 | ||||||||||
Total return (%) | 15.12 | (28.51 | ) | 8.68 | 31.64 | 30.24 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.39 | 1.40 | 1.46 | 1.47 | 1.45 | |||||||||||||||
Expenses, net of waivers and reimbursements | 1.24 | 1.31 | 1.45 | 1.45 | 1.45 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | 0.36 | 0.30 | (0.68 | ) | (0.56 | ) | 0.34 | |||||||||||||
Net investment income (loss), net of waivers and reimbursements | 0.51 | 0.39 | (0.67 | ) | (0.54 | ) | 0.34 | |||||||||||||
Class N net assets at the end of the year (in thousands) | $ | 292,273 | $ | 301,485 | $ | 293,481 | $ | 288,976 | $ | 494,788 | ||||||||||
Portfolio turnover rate (%) | 42 | 50 | 19 | 27 | 34 | |||||||||||||||
Class I | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net asset value, beginning of year | $ | 25.74 | $ | 38.68 | $ | 39.65 | $ | 30.38 | $ | 23.56 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.21 | 0.24 | (0.15 | ) | (0.08 | ) | 0.18 | |||||||||||||
Net realized and unrealized gain (loss) on investments | 3.73 | (11.16 | ) | 3.59 | 9.79 | 7.03 | ||||||||||||||
Total from investment operations | 3.94 | (10.92 | ) | 3.44 | 9.71 | 7.21 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.26 | 0.06 | — | 0.18 | 0.39 | |||||||||||||||
Net realized gain | 0.75 | 1.96 | 4.41 | 0.26 | — | |||||||||||||||
Total distributions | 1.01 | 2.02 | 4.41 | 0.44 | 0.39 | |||||||||||||||
Net asset value, end of year | $ | 28.67 | $ | 25.74 | $ | 38.68 | $ | 39.65 | $ | 30.38 | ||||||||||
Total return (%) | 15.38 | (28.33 | ) | 9.01 | 31.99 | 30.66 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.10 | 1.12 | 1.14 | 1.16 | 1.14 | |||||||||||||||
Expenses, net of waivers and reimbursements | 0.99 | 1.06 | 1.14 | 1.16 | 1.14 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | 0.65 | 0.76 | (0.36 | ) | (0.24 | ) | 0.65 | |||||||||||||
Net investment income (loss), net of waivers and reimbursements | 0.76 | 0.82 | (0.36 | ) | (0.24 | ) | 0.65 | |||||||||||||
Class I net assets at the end of the year (in thousands) | $ | 992,759 | $ | 981,813 | $ | 1,702,775 | $ | 1,914,460 | $ | 1,552,355 | ||||||||||
Portfolio turnover rate (%) | 42 | 50 | 19 | 27 | 34 |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
December 31, 2023 | William Blair Funds | 151 |
Financial Highlights — For a share outstanding throughout each period
International Growth Fund
Class R6 | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019(a) | ||||||||||||||||
Net asset value, beginning of year | $ | 25.76 | $ | 38.72 | $ | 39.66 | $ | 30.37 | $ | 27.56 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.23 | 0.21 | (0.11 | ) | (0.07 | ) | (0.05 | ) | ||||||||||||
Net realized and unrealized gain (loss) on investments | 3.73 | (11.13 | ) | 3.58 | 9.83 | 3.27 | ||||||||||||||
Total from investment operations | 3.96 | (10.92 | ) | 3.47 | 9.76 | 3.22 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.27 | 0.08 | — | 0.21 | 0.41 | |||||||||||||||
Net realized gain | 0.75 | 1.96 | 4.41 | 0.26 | — | |||||||||||||||
Total distributions | 1.02 | 2.04 | 4.41 | 0.47 | 0.41 | |||||||||||||||
Net asset value, end of year | $ | 28.70 | $ | 25.76 | $ | 38.72 | $ | 39.66 | $ | 30.37 | ||||||||||
Total return (%)* | 15.47 | (28.30 | ) | 9.09 | 32.16 | 11.71 | ||||||||||||||
Ratios to average daily net assets (%)**: | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.00 | 1.03 | 1.06 | 1.07 | 1.06 | |||||||||||||||
Expenses, net of waivers and reimbursements | 0.94 | 1.01 | 1.06 | 1.07 | 1.06 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | 0.76 | 0.69 | (0.25 | ) | (0.23 | ) | (0.26 | ) | ||||||||||||
Net investment income (loss), net of waivers and reimbursements | 0.82 | 0.71 | (0.25 | ) | (0.23 | ) | (0.26 | ) | ||||||||||||
Class R6 net assets at the end of the year (in thousands) | $ | 146,072 | $ | 151,338 | $ | 126,641 | $ | 109,214 | $ | 61,916 | ||||||||||
Portfolio turnover rate (%)* | 42 | 50 | 19 | 27 | 34 |
(a) | For the period from May 2, 2019 (Commencement of Operations) to December 31, 2019. |
* | Rates are not annualized for periods less than a year. |
** | Rates are annualized for periods less than a year. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
152 | Annual Report | December 31, 2023 |
Financial Highlights — For a share outstanding throughout each period
Institutional International Growth Fund
Institutional | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net asset value, beginning of year | $ | 12.82 | $ | 19.03 | $ | 20.37 | $ | 17.35 | $ | 13.40 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.09 | 0.11 | (0.05 | ) | (0.01 | ) | 0.12 | |||||||||||||
Net realized and unrealized gain (loss) on investments | 1.85 | (5.47 | ) | 1.86 | 5.60 | 4.00 | ||||||||||||||
Total from investment operations | 1.94 | (5.36 | ) | 1.81 | 5.59 | 4.12 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.13 | 0.06 | — | 0.02 | 0.17 | |||||||||||||||
Net realized gain | 0.23 | 0.79 | 3.15 | 2.55 | — | |||||||||||||||
Total distributions | 0.36 | 0.85 | 3.15 | 2.57 | 0.17 | |||||||||||||||
Net asset value, end of year | $ | 14.40 | $ | 12.82 | $ | 19.03 | $ | 20.37 | $ | 17.35 | ||||||||||
Total return (%) | 15.20 | (28.28 | ) | 9.39 | 32.47 | 30.75 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.00 | 1.01 | 1.01 | 1.00 | 0.99 | |||||||||||||||
Expenses, net of waivers and reimbursements | 0.94 | 0.98 | 1.01 | 1.00 | 0.99 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | 0.61 | 0.71 | (0.22 | ) | (0.04 | ) | 0.77 | |||||||||||||
Net investment income (loss), net of waivers and reimbursements | 0.67 | 0.74 | (0.22 | ) | (0.04 | ) | 0.77 | |||||||||||||
Net assets at the end of the year (in thousands) | $ | 929,474 | $ | 908,732 | $ | 1,281,843 | $ | 1,326,482 | $ | 1,892,911 | ||||||||||
Portfolio turnover rate (%) | 44 | 55 | 19 | 31 | 35 |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
December 31, 2023 | William Blair Funds | 153 |
Financial Highlights — For a share outstanding throughout each period
International Small Cap Growth Fund
Class N | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net asset value, beginning of year | $ | 10.74 | $ | 16.56 | $ | 17.45 | $ | 13.85 | $ | 10.36 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.04 | 0.00 | ^ | (0.12 | ) | (0.05 | ) | 0.05 | ||||||||||||
Net realized and unrealized gain (loss) on investments | 1.51 | (5.82 | ) | 1.91 | 4.01 | 3.45 | ||||||||||||||
Total from investment operations | 1.55 | (5.82 | ) | 1.79 | 3.96 | 3.50 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.08 | — | — | — | 0.01 | |||||||||||||||
Net realized gain | — | — | 2.68 | 0.36 | — | |||||||||||||||
Total distributions | 0.08 | — | 2.68 | 0.36 | 0.01 | |||||||||||||||
Net asset value, end of year | $ | 12.21 | $ | 10.74 | $ | 16.56 | $ | 17.45 | $ | 13.85 | ||||||||||
Total return (%) | 14.42 | (35.14 | ) | 10.87 | 28.68 | 33.81 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.53 | 1.49 | 1.46 | 1.52 | 1.48 | |||||||||||||||
Expenses, net of waivers and reimbursements | 1.42 | 1.49 | 1.46 | 1.52 | 1.48 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | 0.28 | 0.04 | (0.67 | ) | (0.36 | ) | 0.45 | |||||||||||||
Net investment income (loss), net of waivers and reimbursements | 0.39 | 0.04 | (0.67 | ) | (0.36 | ) | 0.45 | |||||||||||||
Class N net assets at the end of the year (in thousands) | $ | 1,547 | $ | 1,638 | $ | 3,540 | $ | 3,101 | $ | 3,650 | ||||||||||
Portfolio turnover rate (%) | 37 | 51 | 52 | 63 | 38 | |||||||||||||||
Class I | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net asset value, beginning of year | $ | 10.90 | $ | 16.80 | $ | 17.66 | $ | 13.98 | $ | 10.45 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.07 | 0.03 | (0.07 | ) | (0.01 | ) | 0.09 | |||||||||||||
Net realized and unrealized gain (loss) on investments | 1.54 | (5.91 | ) | 1.93 | 4.06 | 3.48 | ||||||||||||||
Total from investment operations | 1.61 | (5.88 | ) | 1.86 | 4.05 | 3.57 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.11 | 0.02 | 0.04 | 0.01 | 0.04 | |||||||||||||||
Net realized gain | — | — | 2.68 | 0.36 | — | |||||||||||||||
Total distributions | 0.11 | 0.02 | 2.72 | 0.37 | 0.04 | |||||||||||||||
Net asset value, end of year | $ | 12.40 | $ | 10.90 | $ | 16.80 | $ | 17.66 | $ | 13.98 | ||||||||||
Total return (%) | 14.70 | (34.99 | ) | 11.17 | 29.04 | 34.22 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.25 | 1.23 | 1.19 | 1.25 | 1.21 | |||||||||||||||
Expenses, net of waivers and reimbursements | 1.17 | 1.23 | 1.19 | 1.25 | 1.21 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | 0.54 | 0.28 | (0.40 | ) | (0.05 | ) | 0.75 | |||||||||||||
Net investment income (loss), net of waivers and reimbursements | 0.62 | 0.28 | (0.40 | ) | (0.05 | ) | 0.75 | |||||||||||||
Class I net assets at the end of the year (in thousands) | $ | 103,520 | $ | 98,330 | $ | 136,573 | $ | 145,283 | $ | 142,951 | ||||||||||
Portfolio turnover rate (%) | 37 | 51 | 52 | 63 | 38 |
^ | Amount is less than $0.005 per share. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
154 | Annual Report | December 31, 2023 |
Financial Highlights — For a share outstanding throughout each period
International Small Cap Growth Fund
Class R6 | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net asset value, beginning of year | $ | 10.97 | $ | 16.91 | $ | 17.76 | $ | 14.05 | $ | 10.50 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.08 | 0.05 | (0.06 | ) | 0.00 | ^ | 0.11 | |||||||||||||
Net realized and unrealized gain (loss) on investments | 1.54 | (5.96 | ) | 1.95 | 4.09 | 3.49 | ||||||||||||||
Total from investment operations | 1.62 | (5.91 | ) | 1.89 | 4.09 | 3.60 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.12 | 0.03 | 0.06 | 0.02 | 0.05 | |||||||||||||||
Net realized gain | — | — | 2.68 | 0.36 | — | |||||||||||||||
Total distributions | 0.12 | 0.03 | 2.74 | 0.38 | 0.05 | |||||||||||||||
Net asset value, end of year | $ | 12.47 | $ | 10.97 | $ | 16.91 | $ | 17.76 | $ | 14.05 | ||||||||||
Total return (%) | 14.76 | (34.94 | ) | 11.27 | 29.23 | 34.32 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.15 | 1.14 | 1.10 | 1.14 | 1.12 | |||||||||||||||
Expenses, net of waivers and reimbursements | 1.12 | 1.14 | 1.10 | 1.14 | 1.12 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | 0.64 | 0.38 | (0.31 | ) | 0.02 | 0.86 | ||||||||||||||
Net investment income (loss), net of waivers and reimbursements | 0.67 | 0.38 | (0.31 | ) | 0.02 | 0.86 | ||||||||||||||
Class R6 net assets at the end of the year (in thousands) | $ | 135,679 | $ | 134,982 | $ | 243,398 | $ | 188,497 | $ | 162,465 | ||||||||||
Portfolio turnover rate (%) | 37 | 51 | 52 | 63 | 38 |
^ | Amount is less than $0.005 per share. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
December 31, 2023 | William Blair Funds | 155 |
Financial Highlights — For a share outstanding throughout each period
Emerging Markets Leaders Fund
Class N | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net asset value, beginning of year | $ | 8.29 | $ | 11.33 | $ | 13.26 | $ | 10.51 | $ | 8.26 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.05 | 0.02 | (0.06 | ) | (0.02 | ) | 0.03 | |||||||||||||
Net realized and unrealized gain (loss) on investments | 0.43 | (2.98 | ) | (0.98 | ) | 2.88 | 2.28 | |||||||||||||
Total from investment operations | 0.48 | (2.96 | ) | (1.04 | ) | 2.86 | 2.31 | |||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.05 | — | 0.01 | — | 0.04 | |||||||||||||||
Net realized gain | — | 0.08 | 0.88 | 0.11 | 0.02 | |||||||||||||||
Total distributions | 0.05 | 0.08 | 0.89 | 0.11 | 0.06 | |||||||||||||||
Net asset value, end of year | $ | 8.72 | $ | 8.29 | $ | 11.33 | $ | 13.26 | $ | 10.51 | ||||||||||
Total return (%) | 5.85 | (26.11 | ) | (7.69 | ) | 27.23 | 27.98 | |||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.46 | 1.48 | 1.56 | 1.63 | 1.62 | |||||||||||||||
Expenses, net of waivers and reimbursements | 1.24 | 1.29 | 1.40 | 1.40 | 1.45 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | 0.41 | 0.05 | (0.64 | ) | (0.45 | ) | 0.17 | |||||||||||||
Net investment income (loss), net of waivers and reimbursements | 0.63 | 0.24 | (0.48 | ) | (0.22 | ) | 0.34 | |||||||||||||
Class N net assets at the end of the year (in thousands) | $ | 1,007 | $ | 1,092 | $ | 2,096 | $ | 1,803 | $ | 1,856 | ||||||||||
Portfolio turnover rate (%) | 44 | 42 | 40 | 47 | 33 | |||||||||||||||
Class I | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net asset value, beginning of year | $ | 8.32 | $ | 11.33 | $ | 13.28 | $ | 10.52 | $ | 8.27 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.09 | 0.06 | (0.04 | ) | (0.00 | )^ | 0.06 | |||||||||||||
Net realized and unrealized gain (loss) on investments | 0.42 | (2.99 | ) | (0.98 | ) | 2.89 | 2.29 | |||||||||||||
Total from investment operations | 0.51 | (2.93 | ) | (1.02 | ) | 2.89 | 2.35 | |||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.07 | — | 0.05 | 0.02 | 0.08 | |||||||||||||||
Net realized gain | — | 0.08 | 0.88 | 0.11 | 0.02 | |||||||||||||||
Total distributions | 0.07 | 0.08 | 0.93 | 0.13 | 0.10 | |||||||||||||||
Net asset value, end of year | $ | 8.76 | $ | 8.32 | $ | 11.33 | $ | 13.28 | $ | 10.52 | ||||||||||
Total return (%) | 6.13 | (25.84 | ) | (7.48 | ) | 27.52 | 28.36 | |||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.18 | 1.19 | 1.28 | 1.33 | 1.29 | |||||||||||||||
Expenses, net of waivers and reimbursements | 0.99 | 1.05 | 1.15 | 1.15 | 1.20 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | 0.82 | 0.46 | (0.40 | ) | (0.21 | ) | 0.53 | |||||||||||||
Net investment income (loss), net of waivers and reimbursements | 1.01 | 0.60 | (0.27 | ) | (0.03 | ) | 0.62 | |||||||||||||
Class I net assets at the end of the year (in thousands) | $ | 13,772 | $ | 29,682 | $ | 42,750 | $ | 62,319 | $ | 45,090 | ||||||||||
Portfolio turnover rate (%) | 44 | 42 | 40 | 47 | 33 |
^ | Amount is less than $0.005 per share. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
156 | Annual Report | December 31, 2023 |
Financial Highlights — For a share outstanding throughout each period
Emerging Markets Leaders Fund
Class R6 | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net asset value, beginning of year | $ | 8.31 | $ | 11.32 | $ | 13.26 | $ | 10.51 | $ | 8.26 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.09 | 0.06 | (0.02 | ) | 0.00 | ^ | 0.06 | |||||||||||||
Net realized and unrealized gain (loss) on investments | 0.42 | (2.99 | ) | (0.98 | ) | 2.89 | 2.29 | |||||||||||||
Total from investment operations | 0.51 | (2.93 | ) | (1.00 | ) | 2.89 | 2.35 | |||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.07 | — | 0.06 | 0.03 | 0.08 | |||||||||||||||
Net realized gain | — | 0.08 | 0.88 | 0.11 | 0.02 | |||||||||||||||
Total distributions | 0.07 | 0.08 | 0.94 | 0.14 | 0.10 | |||||||||||||||
Net asset value, end of year | $ | 8.75 | $ | 8.31 | $ | 11.32 | $ | 13.26 | $ | 10.51 | ||||||||||
Total return (%) | 6.22 | (25.86 | ) | (7.35 | ) | 27.50 | 28.45 | |||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.08 | 1.11 | 1.20 | 1.26 | 1.23 | |||||||||||||||
Expenses, net of waivers and reimbursements | 0.94 | 1.00 | 1.10 | 1.10 | 1.15 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | 0.90 | 0.50 | (0.26 | ) | (0.11 | ) | 0.57 | |||||||||||||
Net investment income (loss), net of waivers and reimbursements | 1.04 | 0.61 | (0.16 | ) | 0.05 | 0.65 | ||||||||||||||
Class R6 net assets at the end of the year (in thousands) | $ | 238,806 | $ | 321,319 | $ | 428,839 | $ | 198,015 | $ | 191,337 | ||||||||||
Portfolio turnover rate (%) | 44 | 42 | 40 | 47 | 33 |
^ | Amount is less than $0.005 per share. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
December 31, 2023 | William Blair Funds | 157 |
Financial Highlights — For a share outstanding throughout each period
Emerging Markets Growth Fund
Class N | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net asset value, beginning of year | $ | 10.35 | $ | 15.55 | $ | 18.42 | $ | 13.67 | $ | 11.14 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.06 | 0.02 | (0.13 | ) | (0.09 | ) | 0.11 | |||||||||||||
Net realized and unrealized gain (loss) on investments | 0.97 | (5.20 | ) | 0.62 | 5.60 | 2.98 | ||||||||||||||
Total from investment operations | 1.03 | (5.18 | ) | 0.49 | 5.51 | 3.09 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.03 | — | — | — | 0.16 | |||||||||||||||
Net realized gain | — | 0.02 | 3.36 | 0.76 | 0.40 | |||||||||||||||
Total distributions | 0.03 | 0.02 | 3.36 | 0.76 | 0.56 | |||||||||||||||
Net asset value, end of year | $ | 11.35 | $ | 10.35 | $ | 15.55 | $ | 18.42 | $ | 13.67 | ||||||||||
Total return (%) | 9.99 | (33.33 | ) | 2.97 | 40.43 | 27.89 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.46 | 1.50 | 1.55 | 1.55 | 1.51 | |||||||||||||||
Expenses, net of waivers and reimbursements | 1.24 | 1.36 | 1.55 | 1.55 | 1.51 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | 0.38 | 0.07 | (0.65 | ) | (0.60 | ) | 0.84 | |||||||||||||
Net investment income (loss), net of waivers and reimbursements | 0.60 | 0.21 | (0.65 | ) | (0.60 | ) | 0.84 | |||||||||||||
Class N net assets at the end of the year (in thousands) | $ | 13,748 | $ | 14,664 | $ | 28,565 | $ | 18,606 | $ | 7,804 | ||||||||||
Portfolio turnover rate (%) | 58 | 92 | 52 | 77 | 79 |
Class I | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net asset value, beginning of year | $ | 10.58 | $ | 15.85 | $ | 18.66 | $ | 13.82 | $ | 11.25 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.09 | 0.05 | (0.07 | ) | (0.05 | ) | 0.14 | |||||||||||||
Net realized and unrealized gain (loss) on investments | 0.99 | (5.30 | ) | 0.62 | 5.66 | 3.02 | ||||||||||||||
Total from investment operations | 1.08 | (5.25 | ) | 0.55 | 5.61 | 3.16 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.06 | — | — | 0.01 | 0.19 | |||||||||||||||
Net realized gain | — | 0.02 | 3.36 | 0.76 | 0.40 | |||||||||||||||
Total distributions | 0.06 | 0.02 | 3.36 | 0.77 | 0.59 | |||||||||||||||
Net asset value, end of year | $ | 11.60 | $ | 10.58 | $ | 15.85 | $ | 18.66 | $ | 13.82 | ||||||||||
Total return (%) | 10.23 | (33.14 | ) | 3.25 | 40.72 | 28.29 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.20 | 1.24 | 1.27 | 1.30 | 1.26 | |||||||||||||||
Expenses, net of waivers and reimbursements | 0.99 | 1.11 | 1.27 | 1.30 | 1.26 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | 0.61 | 0.32 | (0.37 | ) | (0.33 | ) | 1.06 | |||||||||||||
Net investment income (loss), net of waivers and reimbursements | 0.82 | 0.45 | (0.37 | ) | (0.33 | ) | 1.06 | |||||||||||||
Class I net assets at the end of the year (in thousands) | $ | 173,377 | $ | 174,884 | $ | 190,985 | $ | 113,697 | $ | 73,496 | ||||||||||
Portfolio turnover rate (%) | 58 | 92 | 52 | 77 | 79 |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
158 | Annual Report | December 31, 2023 |
Financial Highlights — For a share outstanding throughout each period
Emerging Markets Growth Fund
Class R6 | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net asset value, beginning of year | $ | 10.71 | $ | 16.04 | $ | 18.84 | $ | 13.94 | $ | 11.35 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.09 | 0.06 | (0.05 | ) | (0.03 | ) | 0.15 | |||||||||||||
Net realized and unrealized gain (loss) on investments | 1.01 | (5.37 | ) | 0.63 | 5.71 | 3.04 | ||||||||||||||
Total from investment operations | 1.10 | (5.31 | ) | 0.58 | 5.68 | 3.19 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.07 | — | 0.02 | 0.02 | 0.20 | |||||||||||||||
Net realized gain | — | 0.02 | 3.36 | 0.76 | 0.40 | |||||||||||||||
Total distributions | 0.07 | 0.02 | 3.38 | 0.78 | 0.60 | |||||||||||||||
Net asset value, end of year | $ | 11.74 | $ | 10.71 | $ | 16.04 | $ | 18.84 | $ | 13.94 | ||||||||||
Total return (%) | 10.26 | (33.13 | ) | 3.37 | 40.90 | 28.28 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.08 | 1.14 | 1.17 | 1.20 | 1.19 | |||||||||||||||
Expenses, net of waivers and reimbursements | 0.94 | 1.06 | 1.17 | 1.20 | 1.19 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | 0.68 | 0.41 | (0.27 | ) | (0.22 | ) | 1.17 | |||||||||||||
Net investment income (loss), net of waivers and reimbursements | 0.82 | 0.49 | (0.27 | ) | (0.22 | ) | 1.17 | |||||||||||||
Class R6 net assets at the end of the year (in thousands) | $ | 635,716 | $ | 480,586 | $ | 822,288 | $ | 1,063,433 | $ | 708,892 | ||||||||||
Portfolio turnover rate (%) | 58 | 92 | 52 | 77 | 79 |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
December 31, 2023 | William Blair Funds | 159 |
Financial Highlights — For a share outstanding throughout each period
Emerging Markets ex China Growth Fund
Class I | |||||||||
Years Ended December 31, | |||||||||
2023 | 2022(a) | ||||||||
Net asset value, beginning of year | $ | 9.41 | $ | 10.00 | |||||
Income (loss) from investment operations: | |||||||||
Net investment income (loss) | 0.08 | 0.02 | |||||||
Net realized and unrealized gain (loss) on investments | 2.25 | (0.61 | ) | ||||||
Total from investment operations | 2.33 | (0.59 | ) | ||||||
Less distributions from: | |||||||||
Net investment income | 0.10 | — | |||||||
Net realized gain | — | — | |||||||
Total distributions | 0.10 | — | |||||||
Net asset value, end of year | $ | 11.64 | $ | 9.41 | |||||
Total return (%)* | 24.75 | (5.90 | ) | ||||||
Ratios to average daily net assets (%)**: | |||||||||
Expenses, before waivers and reimbursements | 2.35 | 2.77 | |||||||
Expenses, net of waivers and reimbursements | 0.99 | 0.99 | |||||||
Net investment income (loss), before waivers and reimbursements | (0.58 | ) | (1.40 | ) | |||||
Net investment income (loss), net of waivers and reimbursements | 0.78 | 0.38 | |||||||
Class I net assets at the end of the year (in thousands) | $ | 2,841 | $ | 9 | |||||
Portfolio turnover rate (%)* | 55 | 64 | |||||||
Class R6 | |||||||||
Years Ended December 31, | |||||||||
2023 | 2022(a) | ||||||||
Net asset value, beginning of year | $ | 9.42 | $ | 10.00 | |||||
Income (loss) from investment operations: | |||||||||
Net investment income (loss) | 0.08 | 0.02 | |||||||
Net realized and unrealized gain (loss) on investments | 2.25 | (0.60 | ) | ||||||
Total from investment operations | 2.33 | (0.58 | ) | ||||||
Less distributions from: | |||||||||
Net investment income | 0.10 | — | |||||||
Net realized gain | — | — | |||||||
Total distributions | 0.10 | — | |||||||
Net asset value, end of year | $ | 11.65 | $ | 9.42 | |||||
Total return (%)* | 24.75 | (5.80 | ) | ||||||
Ratios to average daily net assets (%)**: | |||||||||
Expenses, before waivers and reimbursements | 2.26 | 2.78 | |||||||
Expenses, net of waivers and reimbursements | 0.94 | 0.94 | |||||||
Net investment income (loss), before waivers and reimbursements | (0.53 | ) | (1.42 | ) | |||||
Net investment income (loss), net of waivers and reimbursements | 0.79 | 0.42 | |||||||
Class R6 net assets at the end of the year (in thousands) | $ | 19,169 | $ | 13,024 | |||||
Portfolio turnover rate (%)* | 55 | 64 |
(a) | For the period from July 29, 2022 (Commencement of Operations) to December 31, 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.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
160 | Annual Report | December 31, 2023 |
Financial Highlights — For a share outstanding throughout each period
Emerging Markets Small Cap Growth Fund
Class N | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net asset value, beginning of year | $ | 16.13 | $ | 23.52 | $ | 22.22 | $ | 16.80 | $ | 13.96 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.03 | (0.01 | ) | (0.20 | ) | (0.06 | ) | 0.00 | ^ | |||||||||||
Net realized and unrealized gain (loss) on investments | 3.51 | (6.59 | ) | 3.53 | 5.48 | 2.84 | ||||||||||||||
Total from investment operations | 3.54 | (6.60 | ) | 3.33 | 5.42 | 2.84 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.01 | — | — | — | — | |||||||||||||||
Net realized gain | — | 0.79 | 2.03 | — | — | |||||||||||||||
Total distributions | 0.01 | 0.79 | 2.03 | — | — | |||||||||||||||
Net asset value, end of year | $ | 19.66 | $ | 16.13 | $ | 23.52 | $ | 22.22 | $ | 16.80 | ||||||||||
Total return (%) | 21.93 | (28.12 | ) | 15.23 | 32.26 | 20.34 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.70 | 1.69 | 1.60 | 1.77 | 1.71 | |||||||||||||||
Expenses, net of waivers and reimbursements | 1.45 | 1.55 | 1.55 | 1.55 | 1.55 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | (0.07 | ) | (0.18 | ) | (0.88 | ) | (0.58 | ) | (0.14 | ) | ||||||||||
Net investment income (loss), net of waivers and reimbursements | 0.18 | (0.04 | ) | (0.83 | ) | (0.36 | ) | 0.02 | ||||||||||||
Class N net assets at the end of the year (in thousands) | $ | 3,857 | $ | 3,069 | $ | 4,262 | $ | 3,947 | $ | 4,025 | ||||||||||
Portfolio turnover rate (%) | 117 | 101 | 76 | 119 | 142 | |||||||||||||||
Class I | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net asset value, beginning of year | $ | 16.37 | $ | 23.79 | $ | 22.40 | $ | 16.90 | $ | 14.03 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.07 | 0.04 | (0.14 | ) | (0.02 | ) | 0.04 | |||||||||||||
Net realized and unrealized gain (loss) on investments | 3.57 | (6.67 | ) | 3.56 | 5.53 | 2.86 | ||||||||||||||
Total from investment operations | 3.64 | (6.63 | ) | 3.42 | 5.51 | 2.90 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.05 | — | — | 0.01 | 0.03 | |||||||||||||||
Net realized gain | — | 0.79 | 2.03 | — | — | |||||||||||||||
Total distributions | 0.05 | 0.79 | 2.03 | 0.01 | 0.03 | |||||||||||||||
Net asset value, end of year | $ | 19.96 | $ | 16.37 | $ | 23.79 | $ | 22.40 | $ | 16.90 | ||||||||||
Total return (%) | 22.25 | (27.93 | ) | 15.51 | 32.60 | 20.58 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.43 | 1.40 | 1.31 | 1.45 | 1.40 | |||||||||||||||
Expenses, net of waivers and reimbursements | 1.20 | 1.30 | 1.30 | 1.30 | 1.30 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | 0.18 | 0.11 | (0.59 | ) | (0.25 | ) | 0.18 | |||||||||||||
Net investment income (loss), net of waivers and reimbursements | 0.41 | 0.21 | (0.58 | ) | (0.10 | ) | 0.28 | |||||||||||||
Class I net assets at the end of the year (in thousands) | $ | 134,297 | $ | 108,401 | $ | 171,994 | $ | 151,302 | $ | 142,885 | ||||||||||
Portfolio turnover rate (%) | 117 | 101 | 76 | 119 | 142 |
^ | Amount is less than $0.005 per share. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
December 31, 2023 | William Blair Funds | 161 |
Financial Highlights — For a share outstanding throughout each period
Emerging Markets Small Cap Growth Fund
Class R6 | ||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||
2023 | 2022 | 2021 | 2020 | 2019 | ||||||||||||||||
Net asset value, beginning of year | $ | 16.41 | $ | 23.84 | $ | 22.44 | $ | 16.93 | $ | 14.06 | ||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | 0.08 | 0.05 | (0.12 | ) | (0.00) | ^ | 0.05 | |||||||||||||
Net realized and unrealized gain (loss) on investments | 3.59 | (6.69 | ) | 3.56 | 5.53 | 2.86 | ||||||||||||||
Total from investment operations | 3.67 | (6.64 | ) | 3.44 | 5.53 | 2.91 | ||||||||||||||
Less distributions from: | ||||||||||||||||||||
Net investment income | 0.06 | — | 0.01 | 0.02 | 0.04 | |||||||||||||||
Net realized gain | — | 0.79 | 2.03 | — | — | |||||||||||||||
Total distributions | 0.06 | 0.79 | 2.04 | 0.02 | 0.04 | |||||||||||||||
Net asset value, end of year | $ | 20.02 | $ | 16.41 | $ | 23.84 | $ | 22.44 | $ | 16.93 | ||||||||||
Total return (%) | 22.37 | (27.91 | ) | 15.58 | 32.66 | 20.69 | ||||||||||||||
Ratios to average daily net assets (%): | ||||||||||||||||||||
Expenses, before waivers and reimbursements | 1.32 | 1.31 | 1.23 | 1.36 | 1.33 | |||||||||||||||
Expenses, net of waivers and reimbursements | 1.15 | 1.25 | 1.23 | 1.25 | 1.25 | |||||||||||||||
Net investment income (loss), before waivers and reimbursements | 0.29 | 0.18 | (0.49 | ) | (0.14 | ) | 0.27 | |||||||||||||
Net investment income (loss), net of waivers and reimbursements | 0.46 | 0.24 | (0.49 | ) | (0.03 | ) | 0.35 | |||||||||||||
Class R6 net assets at the end of the year (in thousands) | $ | 251,558 | $ | 211,203 | $ | 324,152 | $ | 152,160 | $ | 130,711 | ||||||||||
Portfolio turnover rate (%) | 117 | 101 | 76 | 119 | 142 |
^ | Amount is less than $0.005 per share. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
162 | Annual Report | December 31, 2023 |
Financial Highlights — For a share outstanding throughout each period
China Growth Fund
Class I | ||||||||||||
Years Ended December 31, | ||||||||||||
2023 | 2022 | 2021(a) | ||||||||||
Net asset value, beginning of year | $ | 6.46 | $ | 9.54 | $ | 10.00 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income (loss) | 0.05 | 0.03 | (0.04 | ) | ||||||||
Net realized and unrealized gain (loss) on investments | (1.62 | ) | (3.11 | ) | (0.42 | ) | ||||||
Total from investment operations | (1.57 | ) | (3.08 | ) | (0.46 | ) | ||||||
Less distributions from: | ||||||||||||
Net investment income | 0.02 | — | — | |||||||||
Net realized gain | — | — | — | |||||||||
Total distributions | 0.02 | — | — | |||||||||
Net asset value, end of year | $ | 4.87 | $ | 6.46 | $ | 9.54 | ||||||
Total return (%)* | (24.28 | ) | (32.43 | ) | (4.40 | ) | ||||||
Ratios to average daily net assets (%)**: | ||||||||||||
Expenses, before waivers and reimbursements | 9.78 | 5.31 | 4.74 | |||||||||
Expenses, net of waivers and reimbursements | 0.99 | 1.01 | 1.05 | |||||||||
Net investment income (loss), before waivers and reimbursements | (7.93 | ) | (3.90 | ) | (4.69 | ) | ||||||
Net investment income (loss), net of waivers and reimbursements | 0.86 | 0.40 | (1.00 | ) | ||||||||
Class I net assets at the end of the year (in thousands) | $ | 160 | $ | 509 | $ | 5,538 | ||||||
Portfolio turnover rate (%)* | 97 | 36 | 4 |
Class R6 | ||||||||||||
Years Ended December 31, | ||||||||||||
2023 | 2022 | 2021(a) | ||||||||||
Net asset value, beginning of year | $ | 6.45 | $ | 9.54 | $ | 10.00 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income (loss) | 0.04 | 0.02 | (0.03 | ) | ||||||||
Net realized and unrealized gain (loss) on investments | (1.61 | ) | (3.11 | ) | (0.43 | ) | ||||||
Total from investment operations | (1.57 | ) | (3.09 | ) | (0.46 | ) | ||||||
Less distributions from: | ||||||||||||
Net investment income | 0.03 | 0.00 | ^ | — | ||||||||
Net realized gain | — | — | — | |||||||||
Total distributions | 0.03 | 0.00 | ^ | — | ||||||||
Net asset value, end of year | $ | 4.85 | $ | 6.45 | $ | 9.54 | ||||||
Total return (%)* | (24.38 | ) | (32.49 | ) | (4.40 | ) | ||||||
Ratios to average daily net assets (%)**: | ||||||||||||
Expenses, before waivers and reimbursements | 9.75 | 5.27 | 4.72 | |||||||||
Expenses, net of waivers and reimbursements | 0.94 | 0.96 | 1.00 | |||||||||
Net investment income (loss), before waivers and reimbursements | (8.08 | ) | (4.01 | ) | (4.61 | ) | ||||||
Net investment income (loss), net of waivers and reimbursements | 0.73 | 0.30 | (0.89 | ) | ||||||||
Class R6 net assets at the end of the year (in thousands) | $ | 1,687 | $ | 1,438 | $ | 1,687 | ||||||
Portfolio turnover rate (%)* | 97 | 36 | 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. |
^ | Amount is less than $0.005 per share. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
December 31, 2023 | William Blair Funds | 163 |
Financial Highlights — For a share outstanding throughout each period
Emerging Markets Debt Fund
Class I | ||||||||||||
Years Ended December 31, | ||||||||||||
2023 | 2022 | 2021(a) | ||||||||||
Net asset value, beginning of year | $ | 7.44 | $ | 9.59 | $ | 10.00 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income (loss) | 0.52 | 0.48 | 0.27 | |||||||||
Net realized and unrealized gain (loss) on investments | 0.44 | (2.10 | ) | (0.40 | ) | |||||||
Total from investment operations | 0.96 | (1.62 | ) | (0.13 | ) | |||||||
Less distributions from: | ||||||||||||
Net investment income | 0.48 | 0.51 | 0.28 | |||||||||
Net realized gain | — | — | — | |||||||||
Return of capital | 0.03 | 0.02 | — | |||||||||
Total distributions | 0.51 | 0.53 | 0.28 | |||||||||
Net asset value, end of year | $ | 7.89 | $ | 7.44 | $ | 9.59 | ||||||
Total return (%)* | 13.41 | (16.93 | ) | (1.39 | ) | |||||||
Ratios to average daily net assets (%)**: | ||||||||||||
Expenses, before waivers and reimbursements | 1.26 | 1.28 | 1.24 | |||||||||
Expenses, net of waivers and reimbursements | 0.70 | 0.70 | 0.70 | |||||||||
Net investment income (loss), before waivers and reimbursements | 6.42 | 5.39 | 4.02 | |||||||||
Net investment income (loss), net of waivers and reimbursements | 6.98 | 5.97 | 4.56 | |||||||||
Class I net assets at the end of the year (in thousands) | $ | 3,205 | $ | 923 | $ | 1,484 | ||||||
Portfolio turnover rate (%)* | 106 | 118 | 72 |
Class R6 | ||||||||||||
Years Ended December 31, | ||||||||||||
2023 | 2022 | 2021(a) | ||||||||||
Net asset value, beginning of year | $ | 7.44 | $ | 9.59 | $ | 10.00 | ||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income (loss) | 0.53 | 0.48 | 0.28 | |||||||||
Net realized and unrealized gain (loss) on investments | 0.42 | (2.09 | ) | (0.41 | ) | |||||||
Total from investment operations | 0.95 | (1.61 | ) | (0.13 | ) | |||||||
Less distributions from: | ||||||||||||
Net investment income | 0.48 | 0.52 | 0.28 | |||||||||
Net realized gain | — | — | — | |||||||||
Return of capital | 0.03 | 0.02 | — | |||||||||
Total distributions | 0.51 | 0.54 | 0.28 | |||||||||
Net asset value, end of year | $ | 7.88 | $ | 7.44 | $ | 9.59 | ||||||
Total return (%)* | 13.48 | (16.95 | ) | (1.32 | ) | |||||||
Ratios to average daily net assets (%)**: | ||||||||||||
Expenses, before waivers and reimbursements | 1.17 | 1.20 | 1.17 | |||||||||
Expenses, net of waivers and reimbursements | 0.65 | 0.65 | 0.65 | |||||||||
Net investment income (loss), before waivers and reimbursements | 6.52 | 5.50 | 4.10 | |||||||||
Net investment income (loss), net of waivers and reimbursements | 7.04 | 6.05 | 4.62 | |||||||||
Class R6 net assets at the end of the year (in thousands) | $ | 50,231 | $ | 44,903 | $ | 50,010 | ||||||
Portfolio turnover rate (%)* | 106 | 118 | 72 |
(a) | For the period from May 25, 2021 (Commencement of Operations) to December 31, 2021. |
* | Rates are not annualized for periods less than a year. |
** | Rates are annualized for periods less than a year. |
Note: Net investment income (loss) per share is based on the average shares outstanding during the year.
Performance cited represents past performance. Past performance does not guarantee future results and current performance may be lower or higher than the data quoted. Results shown are annual returns, which assume reinvestment of dividends and capital gains. Investment returns and principal will fluctuate and you may have a gain or loss when you sell shares. For the most current month-end performance information, please call 1-800-742-7272 or visit our Web site at www.williamblairfunds.com.
164 | Annual Report | December 31, 2023 |
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Shareholders and the Board of Trustees of William Blair Funds
Opinion on the Financial Statements
We have audited the accompanying statements of assets and liabilities of William Blair Funds (the “Trust”) (comprising Growth Fund, Large Cap Growth Fund, Mid Cap Value Fund, Small-Mid Cap Core Fund, Small-Mid Cap Growth Fund, Small-Mid Cap Value Fund, Small Cap Growth Fund, Small Cap Value Fund, Global Leaders Fund, International Leaders Fund, International Growth Fund, Institutional International Growth Fund, International Small Cap Growth Fund, Emerging Markets Leaders Fund, Emerging Markets Growth Fund, Emerging Markets ex China Growth Fund, Emerging Markets Small Cap Growth Fund, China Growth Fund, and Emerging Markets Debt Fund (collectively referred to as the “Funds”)), including the portfolios of investments, as of December 31, 2023, and the related statements of operations and changes in net assets, and the financial highlights for each of the periods indicated in the table below and the related notes (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds comprising William Blair Funds at December 31, 2023, the results of their operations, changes in net assets and financial highlights for each of the periods indicated in the table below, in conformity with U.S. generally accepted accounting principles.
Funds comprising the William Blair Funds | Statements of operations | Statements of changes in net assets | Financial highlights |
Growth Fund Large Cap Growth Fund Small-Mid Cap Growth Fund Small Cap Growth Fund Global Leaders Fund International Leaders Fund International Growth Fund Institutional International Growth Fund International Small Cap Growth Fund Emerging Markets Leaders Fund Emerging Markets Growth Fund Emerging Markets Small Cap Growth Fund | For the year ended December 31, 2023 | For each of the two years in the period ended December 31, 2023 | For each of the five years in the period ended December 31, 2023 |
Small-Mid Cap Core Fund | For the year ended December 31, 2023 | For each of the two years in the period ended December 31, 2023 | For each of the four years in the period ended December 31, 2023 and the period from October 1, 2019 (commencement of operations) through December 31, 2019 |
China Growth Fund | For the year ended December 31, 2023 | For each of the two years in the period ended December 31, 2023 | For each of the two years in the period ended December 31, 2023 and the period from August 27, 2021 (commencement of operations) through December 31, 2021 |
Emerging Markets Debt Fund | For the year ended December 31, 2023 | For each of the two years in the period ended December 31, 2023 | For each of the two years in the period ended December 31, 2023 and the period from May 25, 2021 (commencement of operations) through December 31, 2021 |
December 31, 2023 | William Blair Funds | 165 |
Funds comprising the William Blair Funds | Statements of operations | Statements of changes in net assets | Financial highlights |
Small Cap Value Fund | For the year ended December 31, 2023 | For each of the two years in the period ended December 31, 2023 | For each of the two years in the period ended December 31, 2023 and the period from November 1, 2021 through December 31, 2021 and the year ended October 31, 2021 |
Mid Cap Value Fund | For the year ended December 31, 2023 | For the year ended December 31, 2023 and the period from March 16, 2022 (commencement of operations) through December 31, 2022 | |
Emerging Markets ex China Growth Fund | For the year ended December 31, 2023 | For the year ended December 31, 2023 and the period from July 29, 2022 (commencement of operations) through December 31, 2022 | |
Small-Mid Cap Value Fund | For the period from August 17, 2023 (commencement of operations) through December 31, 2023 |
The financial highlights for each of the two years in the period ended October 31, 2020 for the Small Cap Value Fund were audited by other auditors whose report dated December 21, 2020, expressed an unqualified opinion on the financial statements and financial highlights.
Basis for Opinion
These financial statements are the responsibility of the Trust’s management. Our responsibility is to express an opinion on each of the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Trust in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Trust is not required to have, nor were we engaged to perform, an audit of the Trust’s internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the Trust’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2023, by correspondence with the custodian and brokers, when replies were not received from brokers, we performed other auditing procedures. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
We have served as the auditor of one or more William Blair investment companies since 1989.
Chicago, Illinois
February 23, 2024
166 | Annual Report | December 31, 2023 |
APPROVAL OF THE MANAGEMENT AGREEMENT FOR THE WILLIAM BLAIR
SMALL-MID CAP VALUE FUND
On April 26, 2023, 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 Small-Mid Cap Value Fund (the “Fund”), and William Blair Investment Management, LLC (the “Adviser”). The Independent Trustees met independently of Trust management and the interested Trustees of the Trust to consider the approval of the management agreement. The Independent Trustees reviewed materials provided by the Adviser and Broadridge for the approval of the management agreement and were assisted by independent legal counsel in making their determination. The Board determined that, given the totality of the information provided with respect to the management agreement, the Board had received sufficient information to consider the approval of the management agreement. The Board considered the following factors in making its determination, but did not identify any single factor or group of factors as all important or controlling and considered all factors together.
Nature, Quality and Extent of Services. In evaluating the nature, quality and extent of the services expected to be provided by the Adviser to the Fund, the Board noted that the Adviser is a quality firm with a reputation for integrity and honesty that employs high quality people. The Board considered 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 small-cap and 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 an expense peer group and an expense peer universe of institutional funds provided by Broadridge. The Broadridge expense peer group for the Fund consisted of the Fund (which Broadridge classified as a mid-cap value fund), 12 (no-load) institutional small-cap core funds and 2 (no-load) institutional small-cap value funds, as classified by Broadridge. The Broadridge expense peer universe for the Fund consisted of the Fund, the Fund’s Broadridge expense peer group and all other institutional mid-cap value, small-cap core and small-cap value funds, excluding outliers.
In considering the information, the Board noted that the proposed advisory fee for the Fund was below the median and the average contractual management fees of the expense 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, 2025. 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 and had no assets, the Adviser’s agreement to limit total expenses until April 30, 2025 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, 2025, 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, 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.
December 31, 2023 | William Blair Funds | 167 |
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; Chair Emeritus, Independent Directors Council (since 2022); formerly, Chairman of the Governing Council, Independent Directors Council (2020 to 2022); 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) and Muzinich Corporate Lending Income Fund, Inc. (since 2023); 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’). |
* | Includes directorships of public companies and other registered investment companies held during the past five years. |
168 | Annual Report | December 31, 2023 |
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 (2022); LanzaTech Global (since 2023) | |||||
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 $252,000 and $295,000 in 2021 and 2022, respectively, for the services provided. DFS’s revenue was approximately $993 million in 2021 and $834 million in 2022. 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. |
December 31, 2023 | William Blair Funds | 169 |
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 | |||
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) | |||
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 | |||
Andrew Siepker, CFA, 1981 | Senior Vice President | Since 2022 | Partner, William Blair (since 2019); formerly, Associate, William Blair | |||
170 | Annual Report | December 31, 2023 |
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 | |||
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 | Partner, William Blair (since 2024); formerly, Associate, William Blair (2019-2023); formerly, Managing Director, AQR Capital Management (2011-2019) | |||
Nicholas Zimmerman, CFA, 1980 | Senior Vice President | Since 2023 | Partner, William Blair (since 2022); formerly, Associate, William Blair | |||
Paul Birchenough, 1982 | Vice President | Since 2024 | Associate, William Blair (since 2024); formerly, Newton Investment Managers (2020-2024); formerly, AXA Investment Managers (2011-2020) | |||
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) | |||
Ian Smith, 1978 | Vice President | Since 2024 | Associate, William Blair (since 2024); formerly, Newton Investment Managers (2020-2024); formerly, AXA Investment Managers (2012-2020) | |||
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 | |||
Daniel Carey, 1977 | Chief Legal Officer and Assistant Secretary | Since 2023 | Associate, William Blair |
(1) | The Trust’s Officers, except the Chief Compliance Officer, are elected annually by the Board of Trustees. The Trust’s Chief Compliance Officer is designated by the Board of Trustees and may only be removed by action of the Board of Trustees, including a majority of Independent Trustees. Length of Time Served for all Officers indicates the year the individual became an Officer of the Trust. |
The Statement of Additional Information for the William Blair Funds includes additional information about the trustees and is available without charge by calling 1-800-635-2886 (in Massachusetts 1-800-635-2840) or by writing the Fund.
December 31, 2023 | William Blair Funds | 171 |
(Unaudited)
Proxy Voting
A description of the policies and procedures that the Funds use to determine how to vote proxies relating to portfolio securities and information regarding how the Funds voted proxies relating to portfolio securities for the most recent 12-month period ended June 30 are available without charge, upon request, by calling 1-800-635-2886 (in Massachusetts 1-800-635-2840), at www.williamblairfunds.com and on the SEC’s website at http://www.sec.gov.
Quarterly Portfolio Schedules
Each Fund files its complete schedule of portfolio holdings with the SEC for the first and third fiscal quarters of each fiscal year (quarters ended March 31 and September 30) on Form N-PORT. The Funds’ Forms N-PORT are available on the SEC’s website at http://www.sec.gov.
Additional Federal Income Tax Information:
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, 2023 (in thousands):
Fund | Capital Gain Dividend | |||
Growth | $ | 24,248 | ||
Small-Mid Cap Growth | 151,303 | |||
Small Cap Growth | 11,518 | |||
Small Cap Value | 29,835 | |||
Global Leaders | 6,749 | |||
International Growth | 43,927 | |||
Institutional International Growth | 15,350 | |||
172 | Annual Report | December 31, 2023 |
Useful Information About Your Report (Unaudited)
Please refer to this information when reviewing the Expense Example for each Fund.
Expense Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs and (2) ongoing costs, including management fees, distribution (12b-1) fees (for Class N shares, as applicable), and other Fund expenses. The example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. To do so, compare the Fund’s 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of other funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period from July 1, 2023 to December 31, 2023.
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. These fees are discussed in the prospectus. Therefore, the second line of each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative costs of owning different funds. In addition, if these transactional costs or account fees were included, your costs would have been higher.
December 31, 2023 | William Blair Funds | 173 |
Expense Example | Beginning Account Value 7/1/2023 | Ending Account Value 12/31/2023 | Expenses Paid During the Period (a) | Annualized Expense Ratio | ||||||
Growth Fund | ||||||||||
Class N-actual return | $1,000.00 | $1,095.21 | $6.34 | 1.20 | % | |||||
Class N-hypothetical 5% return | $1,000.00 | $1,043.95 | $6.18 | 1.20 | ||||||
Class I-actual return | $1,000.00 | $1,095.46 | $4.81 | 0.91 | ||||||
Class I-hypothetical 5% return | $1,000.00 | $1,045.41 | $4.69 | 0.91 | ||||||
Class R6-actual return | $1,000.00 | $1,095.86 | $4.60 | 0.87 | ||||||
Class R6-hypothetical 5% return | $1,000.00 | $1,045.61 | $4.49 | 0.87 | ||||||
Large Cap Growth Fund | ||||||||||
Class N-actual return | $1,000.00 | $1,121.15 | $4.81 | 0.90 | ||||||
Class N-hypothetical 5% return | $1,000.00 | $1,045.46 | $4.64 | 0.90 | ||||||
Class I-actual return | $1,000.00 | $1,122.04 | $3.48 | 0.65 | ||||||
Class I-hypothetical 5% return | $1,000.00 | $1,046.72 | $3.35 | 0.65 | ||||||
Class R6-actual return | $1,000.00 | $1,123.06 | $3.21 | 0.60 | ||||||
Class R6-hypothetical 5% return | $1,000.00 | $1,046.98 | $3.10 | 0.60 | ||||||
Mid Cap Value Fund | ||||||||||
Class I-actual return | $1,000.00 | $1,069.29 | $3.91 | 0.75 | ||||||
Class I-hypothetical 5% return | $1,000.00 | $1,046.22 | $3.87 | 0.75 | ||||||
Class R6-actual return | $1,000.00 | $1,069.80 | $3.65 | 0.70 | ||||||
Class R6-hypothetical 5% return | $1,000.00 | $1,046.47 | $3.61 | 0.70 | ||||||
Small-Mid Cap Core Fund | ||||||||||
Class I-actual return | $1,000.00 | $1,048.08 | $4.90 | 0.95 | ||||||
Class I-hypothetical 5% return | $1,000.00 | $1,045.21 | $4.90 | 0.95 | ||||||
Class R6-actual return | $1,000.00 | $1,047.81 | $4.65 | 0.90 | ||||||
Class R6-hypothetical 5% return | $1,000.00 | $1,045.46 | $4.64 | 0.90 | ||||||
Small-Mid Cap Growth Fund | ||||||||||
Class N-actual return | $1,000.00 | $1,053.70 | $6.42 | 1.24 | ||||||
Class N-hypothetical 5% return | $1,000.00 | $1,043.75 | $6.39 | 1.24 | ||||||
Class I-actual return | $1,000.00 | $1,054.75 | $5.13 | 0.99 | ||||||
Class I-hypothetical 5% return | $1,000.00 | $1,045.01 | $5.10 | 0.99 | ||||||
Class R6-actual return | $1,000.00 | $1,054.92 | $4.87 | 0.94 | ||||||
Class R6-hypothetical 5% return | $1,000.00 | $1,045.26 | $4.85 | 0.94 | ||||||
Small-Mid Cap Value Fund | ||||||||||
Class I-actual return (b) | $1,000.00 | $1,064.55 | $3.27 | 0.85 | ||||||
Class I-hypothetical 5% return (6 month period) | $1,000.00 | $1,046.83 | $3.24 | 0.85 | ||||||
Class R6-actual return (b) | $1,000.00 | $1,065.01 | $3.08 | 0.80 | ||||||
Class R6-hypothetical 5% return (6 month period) | $1,000.00 | $1,047.02 | $3.05 | 0.80 | ||||||
Small Cap Growth Fund | ||||||||||
Class N-actual return | $1,000.00 | $1,044.10 | $6.39 | 1.24 | ||||||
Class N-hypothetical 5% return | $1,000.00 | $1,043.75 | $6.39 | 1.24 | ||||||
Class I-actual return | $1,000.00 | $1,045.32 | $5.10 | 0.99 | ||||||
Class I-hypothetical 5% return | $1,000.00 | $1,045.01 | $5.10 | 0.99 | ||||||
Class R6-actual return | $1,000.00 | $1,045.81 | $4.85 | 0.94 | ||||||
Class R6-hypothetical 5% return | $1,000.00 | $1,045.26 | $4.85 | 0.94 | ||||||
Small Cap Value Fund | ||||||||||
Class N-actual return | $1,000.00 | $1,085.17 | $5.83 | 1.11 | ||||||
Class N-hypothetical 5% return | $1,000.00 | $1,044.40 | $5.72 | 1.11 | ||||||
Class I-actual return | $1,000.00 | $1,086.61 | $4.68 | 0.89 | ||||||
Class I-hypothetical 5% return | $1,000.00 | $1,045.51 | $4.59 | 0.89 | ||||||
Class R6-actual return | $1,000.00 | $1,086.89 | $4.16 | 0.79 | ||||||
Class R6-hypothetical 5% return | $1,000.00 | $1,046.02 | $4.07 | 0.79 | ||||||
Global Leaders Fund | ||||||||||
Class N-actual return | $1,000.00 | $1,035.17 | $5.90 | 1.15 | ||||||
Class N-hypothetical 5% return | $1,000.00 | $1,044.20 | $5.93 | 1.15 | ||||||
Class I-actual return | $1,000.00 | $1,037.21 | $4.62 | 0.90 | ||||||
Class I-hypothetical 5% return | $1,000.00 | $1,045.46 | $4.64 | 0.90 | ||||||
Class R6-actual return | $1,000.00 | $1,037.08 | $4.36 | 0.85 | ||||||
Class R6-hypothetical 5% return | $1,000.00 | $1,045.72 | $4.38 | 0.85 |
174 | Annual Report | December 31, 2023 |
Fund Expenses (Unaudited)
Expense Example | Beginning Account Value 7/1/2023 | Ending Account Value 12/31/2023 | Expenses Paid During the Period (a) | Annualized Expense Ratio | ||||||
International Leaders Fund | ||||||||||
Class N-actual return | $1,000.00 | $1,012.31 | $5.83 | 1.15 | % | |||||
Class N-hypothetical 5% return | $1,000.00 | $1,044.20 | $5.93 | 1.15 | ||||||
Class I-actual return | $1,000.00 | $1,013.33 | $4.57 | 0.90 | ||||||
Class I-hypothetical 5% return | $1,000.00 | $1,045.46 | $4.64 | 0.90 | ||||||
Class R6-actual return | $1,000.00 | $1,013.82 | $4.31 | 0.85 | ||||||
Class R6-hypothetical 5% return | $1,000.00 | $1,045.72 | $4.38 | 0.85 | ||||||
International Growth Fund | ||||||||||
Class N-actual return | $1,000.00 | $1,036.00 | $6.36 | 1.24 | ||||||
Class N-hypothetical 5% return | $1,000.00 | $1,043.75 | $6.39 | 1.24 | ||||||
Class I-actual return | $1,000.00 | $1,037.01 | $5.08 | 0.99 | ||||||
Class I-hypothetical 5% return | $1,000.00 | $1,045.01 | $5.10 | 0.99 | ||||||
Class R6-actual return | $1,000.00 | $1,037.48 | $4.83 | 0.94 | ||||||
Class R6-hypothetical 5% return | $1,000.00 | $1,045.26 | $4.85 | 0.94 | ||||||
Institutional International Growth Fund | ||||||||||
Institutional Class-actual return | $1,000.00 | $1,034.93 | $4.82 | 0.94 | ||||||
Institutional Class-hypothetical 5% return | $1,000.00 | $1,045.26 | $4.85 | 0.94 | ||||||
International Small Cap Growth Fund | ||||||||||
Class N-actual return | $1,000.00 | $1,053.01 | $6.99 | 1.35 | ||||||
Class N-hypothetical 5% return | $1,000.00 | $1,043.19 | $6.95 | 1.35 | ||||||
Class I-actual return | $1,000.00 | $1,054.12 | $5.70 | 1.10 | ||||||
Class I-hypothetical 5% return | $1,000.00 | $1,044.45 | $5.67 | 1.10 | ||||||
Class R6-actual return | $1,000.00 | $1,054.34 | $5.44 | 1.05 | ||||||
Class R6-hypothetical 5% return | $1,000.00 | $1,044.71 | $5.41 | 1.05 | ||||||
Emerging Markets Leaders Fund | ||||||||||
Class N-actual return | $1,000.00 | $1,010.93 | $6.29 | 1.24 | ||||||
Class N-hypothetical 5% return | $1,000.00 | $1,043.75 | $6.39 | 1.24 | ||||||
Class I-actual return | $1,000.00 | $1,013.78 | $5.03 | 0.99 | ||||||
Class I-hypothetical 5% return | $1,000.00 | $1,045.01 | $5.10 | 0.99 | ||||||
Class R6-actual return | $1,000.00 | $1,013.39 | $4.77 | 0.94 | ||||||
Class R6-hypothetical 5% return | $1,000.00 | $1,045.26 | $4.85 | 0.94 | ||||||
Emerging Markets Growth Fund | ||||||||||
Class N-actual return | $1,000.00 | $1,045.33 | $6.39 | 1.24 | ||||||
Class N-hypothetical 5% return | $1,000.00 | $1,043.75 | $6.39 | 1.24 | ||||||
Class I-actual return | $1,000.00 | $1,046.88 | $5.11 | 0.99 | ||||||
Class I-hypothetical 5% return | $1,000.00 | $1,045.01 | $5.10 | 0.99 | ||||||
Class R6-actual return | $1,000.00 | $1,046.86 | $4.85 | 0.94 | ||||||
Class R6-hypothetical 5% return | $1,000.00 | $1,045.26 | $4.85 | 0.94 | ||||||
Emerging Markets ex China Growth Fund | ||||||||||
Class I-actual return | $1,000.00 | $1,099.16 | $5.24 | 0.99 | ||||||
Class I-hypothetical 5% return | $1,000.00 | $1,045.01 | $5.10 | 0.99 | ||||||
Class R6-actual return | $1,000.00 | $1,099.33 | $4.97 | 0.94 | ||||||
Class R6-hypothetical 5% return | $1,000.00 | $1,045.26 | $4.85 | 0.94 | ||||||
Emerging Markets Small Cap Growth Fund | ||||||||||
Class N-actual return | $1,000.00 | $1,089.63 | $7.37 | 1.40 | ||||||
Class N-hypothetical 5% return | $1,000.00 | $1,042.94 | $7.21 | 1.40 | ||||||
Class I-actual return | $1,000.00 | $1,090.56 | $6.06 | 1.15 | ||||||
Class I-hypothetical 5% return | $1,000.00 | $1,044.20 | $5.93 | 1.15 | ||||||
Class R6-actual return | $1,000.00 | $1,091.36 | $5.80 | 1.10 | ||||||
Class R6-hypothetical 5% return | $1,000.00 | $1,044.45 | $5.67 | 1.10 | ||||||
China Growth Fund | ||||||||||
Class I-actual return | $1,000.00 | $890.93 | $4.72 | 0.99 | ||||||
Class I-hypothetical 5% return | $1,000.00 | $1,045.01 | $5.10 | 0.99 | ||||||
Class R6-actual return | $1,000.00 | $891.68 | $4.48 | 0.94 | ||||||
Class R6-hypothetical 5% return | $1,000.00 | $1,045.26 | $4.85 | 0.94 |
December 31, 2023 | William Blair Funds | 175 |
Fund Expenses (Unaudited)
Expense Example | Beginning Account Value 7/1/2023 | Ending Account Value 12/31/2023 | Expenses Paid During the Period (a) | Annualized Expense Ratio | ||||||
Emerging Markets Debt Fund | ||||||||||
Class I-actual return | $1,000.00 | $1,078.89 | $3.67 | 0.70 | % | |||||
Class I-hypothetical 5% return | $1,000.00 | $1,046.47 | $3.61 | 0.70 | ||||||
Class R6-actual return | $1,000.00 | $1,079.27 | $3.41 | 0.65 | ||||||
Class R6-hypothetical 5% return | $1,000.00 | $1,046.72 | $3.35 | 0.65 |
(a) | Expenses are equal to the annualized expense ratio, multiplied by the average account value over the period, multiplied by the number of days in the period, 184 and divided by 365 (to reflect the one-half year period). | |
(b) | For the period August 17, 2023 (Commencement of Operations) to December 31, 2023. |
176 | Annual Report | December 31, 2023 |
BOARD OF TRUSTEES (as of February 23, 2024) | |
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 | |
David C. Fording, CFA, Senior Vice President | |
James S. Golan, CFA, Senior Vice President | |
William V. Heaphy, 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 | |
Nicholas Zimmerman, CFA, Senior Vice President | |
Paul Birchenough, Vice President | |
Matthew Fleming, CFA, Vice President | |
Gary J. Merwitz, Vice President | |
Marco Ruijer, CFA, Vice President | |
Ian Smith, 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 | |
Daniel Carey, Chief Legal 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 | |
SS&C GIDS, Inc. | |
For customer assistance, call 1-800-635-2886 | |
P.O. Box 219137 | |
Kansas City, Missouri 64121-9137 |
December 31, 2023 | William Blair Funds | 177 |
William Blair Funds | |||||
U.S. EQUITY | GLOBAL EQUITY | EMERGING MARKETS DEBT Emerging Markets Debt Fund
| |||
Growth Fund | Global Leaders Fund | ||||
Large Cap Growth Fund | |||||
Mid Cap Value Fund | INTERNATIONAL EQUITY | ||||
Small-Mid Cap Core Fund | International Leaders Fund | ||||
Small-Mid Cap Growth Fund | International Growth Fund | ||||
Small-Mid Cap Value Fund | Institutional International Growth Fund | ||||
Small Cap Growth Fund | International Small Cap Growth Fund | ||||
Small Cap Value Fund | Emerging Markets Leaders Fund | ||||
Emerging Markets Growth Fund | |||||
Emerging Markets ex China Growth Fund | |||||
Emerging Markets Small Cap Growth Fund | |||||
China Growth Fund |
© | William Blair & Company, L.L.C., distributor | |||
+1 800 742 7272 williamblairfunds.com | 150 North Riverside Plaza Chicago, Illinois 60606 | 00103188 |
Item 2. | Code of Ethics |
(a) As of the end of the period covered by this report, the Registrant has adopted a code of ethics (the “Code”) that applies to its principal executive officer and principal financial officer (the “Covered Officers”).
(b) No disclosures are required pursuant to this Item 2(b).
(c) During the period covered by the report, the Registrant did not make any amendment to a provision of the Code.
(d) During the period covered by the report, the Registrant did not grant any waivers, including implicit waivers, from the provisions of the Code.
(e) Not applicable.
(f) A copy of the Code is filed as Exhibit 14(a)(1) to this Form N-CSR.
Item 3. | Audit Committee Financial Expert |
The Registrant’s Board of Trustees has determined that the Registrant has at least one “audit committee financial expert” (as defined in Item 3 of Form N-CSR) serving on its Audit Committee. Mr. Daniel N. Leib, the Registrant’s audit committee financial expert, is “independent” for purposes of Item 3 to Form N-CSR.
An “audit committee financial expert” is not an “expert” for any purpose, including for purposes of Section 11 of the Securities Act of 1933, as a result of being designated as an “audit committee financial expert.” Further, the designation of a person as an “audit committee financial expert” does not mean that the person has any greater duties, obligations, or liability than those imposed on the person without the “audit committee financial expert” designation. Similarly, the designation of a person as an “audit committee financial expert” does not affect the duties, obligations, or liability of any other member of the audit committee or Board of Trustees.
Item 4. | Principal Accountant Fees and Services |
Audit Fees
For the fiscal years ended December 31, 2022 and 2023, Ernst & Young LLP, the Registrant’s principal accountant (“E&Y”), billed the Registrant $489,200 and $492,900, respectively, for professional services rendered for the audit of the Registrant’s annual financial statements or services that are normally provided in connection with statutory and regulatory filings.
Audit-Related Fees
For the fiscal years ended December 31, 2022 and 2023, E&Y billed the Registrant $0 and $0, respectively, for assurance and related services that are reasonably related to the performance of the audit of the Registrant’s financial statements and that are not reported above. For the fiscal years ended December 31, 2022 and 2023, E&Y provided no audit-related services to William Blair Investment Management, LLC, the Registrant’s investment adviser (“William Blair”), or any of its control affiliates that were for engagements directly related to the Registrant’s operations and financial reporting.
Tax Fees
For the fiscal years ended December 31, 2022 and 2023, E&Y billed the Registrant $194,140 and $325,408, respectively, for professional services rendered for tax compliance, tax advice and tax planning. Such services consisted of preparation of tax returns, year-end distribution review, qualifying dividend income analysis and review of year-end tax reporting. For the fiscal years ended December 31, 2022 and 2023, E&Y did not bill William Blair and its control affiliates for any services that were for engagements directly related to the Registrant’s operations and financial reporting.
All Other Fees
For the fiscal years ended December 31, 2022 and 2023, E&Y did not bill the Registrant for products and services other than the services reported above. For the fiscal year ended December 31, 2022 and 2023, E&Y provided no other services to William Blair or any of its control affiliates that were for engagements directly related to the Registrant’s operations and financial reporting.
Audit Committee Pre-Approval Policies and Procedures
Pursuant to the Registrant’s Audit Committee Charter (the “Charter”), the Audit Committee is responsible for pre-approving any engagement of the principal accountant to provide non-prohibited services to the Registrant, including the fees and other compensation to be paid to the principal accountant, to the extent required by Rule 2-01(c)(7) of Regulation S-X. Pursuant to the Charter, the Audit Committee is also responsible for pre-approving any engagement of the principal accountant, including the fees and other compensation to be paid to the principal accountant, to provide non-audit services to the Registrant’s investment adviser (or any entity controlling, controlled by, or under common control with the adviser that provides ongoing services to the Registrant), if the engagement relates directly to the operations and financial reporting of the Registrant, to the extent required by Rule 2-01(c)(7) of Regulation S-X. The Chair of the Audit Committee may grant the pre-approval referenced above for non-prohibited and non-audit services. All such delegated pre-approvals will be presented to the Audit Committee no later than the next Audit Committee meeting. None of the Audit-Related and Tax Services billed by E&Y for the fiscal years ended December 31, 2022 and 2023 discussed above were approved by the Audit Committee pursuant to a waiver of these Pre-Approval Policies and Procedures.
Non-Audit Fees
For the fiscal years ended December 31, 2022 and 2023, E&Y billed the Trust $194,140 and $325,408, respectively, in non-audit fees (tax services). For the same periods, E&Y billed the Adviser and its control affiliates $0 and $0, respectively, in non-audit fees.
Auditor Branch or Office Located in Foreign Jurisdiction
Not applicable to this Registrant.
Foreign Issuer
Not applicable to this Registrant.
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 with respect to Item 6(a).
Item 6(b) is not applicable to this filing.
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. | Recovery of Erroneously Awarded Compensation |
(a) Not applicable.
(b) Not applicable.
Item 14. | Exhibits |
14. (a) (1) Code of Ethics required by Item 2 is filed as an exhibit hereto.
14. (a) (2) (1)
14. (a) (2) (2)
14. (a) (3)
Not applicable to this Registrant.
14. (a) (4)
Not applicable to this filing.
14. (b)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
William Blair Funds | ||
/s/ Stephanie G. Braming | ||
By: | Stephanie G. Braming | |
President (Principal Executive Officer) |
Date: February 23, 2024
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
/s/ Stephanie G. Braming | ||
By: | Stephanie G. Braming | |
President (Principal Executive Officer) |
Date: February 23, 2024
/s/ John M. Raczek | ||
By: | John M. Raczek | |
Treasurer (Principal Financial Officer) |
Date: February 23, 2024