Global Leaders Fund Portfolio Review March 2022 Portfolio Managers
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Global Leaders Fund
Portfolio Review
March 2022
Andrew G. Flynn, CFA, Partner
Kenneth J. McAtamney, Partner
Hugo Scott-Gall, Partner
Portfolio Managers
14857701William Blair Global Leaders Fund Important Disclosures March 2022
Risks:
The views expressed in this report and the information about the holdings are as of the date of this material, unless otherwise
noted, and are subject to change. Information about the Fund’s holdings should not be considered investment advice. There is no
guarantee that the Fund will continue to hold any one particular security or stay invested in any one particular sector. Holdings are
subject to change at any time.
The Fund involves a high level of risk and may not be appropriate for everyone. You should only consider it for the aggressive
portion of your portfolio. The Fund’s returns will vary, and you could lose money by investing in the Fund. The Fund holds equities
which may decline in value due to both real and perceived general market, economic, and industry conditions. International
investing involves special risk considerations, including currency fluctuations, higher volatility, lower liquidity, economic and
political risk. Investing in emerging markets can increase these risks. The securities of emerging market companies may be subject
to greater volatility and less liquidity than companies in more developed markets. Investing in securities of smaller companies
tends to be more volatile and less liquid than securities of larger companies. Individual securities may not perform as expected or a
strategy used by the Adviser may fail to produce its intended result. Convertible securities may be called before intended, which
may have an adverse effect on investment objectives. Investing in smaller companies involves special risks, including higher
volatility and lower liquidity. Diversification does not ensure against loss.
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 returns, which assume
reinvestment of dividends and capital gains. Investment returns and principal will fluctuate with market and economic
conditions and you may have a gain or loss when you sell shares. For the most current month end performance
information, please call 1‐877‐962‐5247, or visit our Web site at www.williamblairfunds.com. Class N shares are available
to the general public without a sales load. Class I and Class R6 shares are available only to investors who meet certain
eligibility requirements.
This content is for informational and educational purposes only and is not intended as investment advice or a recommendation to
buy or sell any security. Investment advice and recommendations can be provided only after careful consideration of an investor’s
objectives, guidelines and restrictions.
Please carefully consider the Fund’s investment objectives, risks, charges, and expenses before investing. This and other
information is contained in the Fund’s prospectus and summary prospectus, which you may obtain by calling +1 800 742 7272.
Read the prospectus and summary prospectus carefully before investing. Investing includes the risk of loss.
Copyright © 2022 William Blair & Company, L.L.C. “William Blair” is a registered trademark of William Blair & Company, L.L.C.
Distributed by William Blair & Company, L.L.C., member FINRA/SIPC.
2 14857701William Blair Global Leaders Fund Summary & Outlook March 2022
Market Review March (-14.27% for the quarter) amid a spike in COVID-19 cases
and newly imposed lockdowns across major cities. Conversely,
After a strong performance in 2021, global equities declined Latin America generated strong returns for the quarter
(-5.47%) in the first quarter (as measured by the MSCI ACWI (+26.34%) with broad outperformance across countries. Oil
IMI) amid increased market volatility induced by concerns over exporters and commodity beneficiaries such as South Africa
inflation, rising interest rates, and heightened geopolitical (+19.30%), Kuwait (+18.56%), and Saudi Arabia (+16.64%), also
tension in Eastern Europe. In January, concerns over rising outperformed.
inflation and hawkish moves by the Federal Reserve drove a
sharp style rotation into lower-value, lower- growth-oriented Performance
securities. Volatility continued in February as the Russian
invasion of Ukraine prompted a coordinated response by First-quarter underperformance of the Global Leaders Fund
Western countries in the form of firm sanctions targeted at (Class N) versus the MSCI ACWI IMI (net) was primarily due to a
Russia’s financial system. The sanctions on Russia rendered significant rotation in the market toward low-valuation, low-
Russian equities and the ruble un-investable with fears of quality, and low-growth companies. From an attribution
contagion to other markets. In this environment, growth equities perspective, weaker stock selection within information
significantly underperformed value-oriented equities (the MSCI technology and healthcare significantly weighed on performance.
ACWI IMI Growth declined -9.83% while the MSCI ACWI IMI Regional allocation effects modestly offset underperformance,
Value declined -1.08%). This was evident from a global sector especially the overweight allocation to Developed Asia ex-Japan
perspective as consumer discretionary (-11.63%) and and Latin America.
information technology (-10.37%) declined while energy stocks
strengthened (+22.64%) on stronger crude oil prices. Within healthcare, Charles River Laboratories weighed on
performance. Charles River is a contract research organization
Developed markets declined (-5.32%) as measured by the MSCI (CRO) that has evolved to be the global leader in the early-stage
World IMI. U.S. equities declined (-5.38%) as the Russian portion of the research market with a dominant market share
invasion of Ukraine amplified existing concerns over rising lead, working on 85% of all FDA-approved drugs in both 2018
inflation and interest rates. The Federal Reserve approved its and 2019. The company has several key competitive advantages
first interest rate increase (0.25%) in over three years with that support its market-leading position including a global
further hikes expected throughout the rest of the year. Europe network, strong brand reputation, and broad product/service
ex-U.K. plunged (-10.04%) as heightened concerns over the portfolio. Despite solid fourth quarter results, the share price
availability of Russian energy imports to Europe weighed on softened alongside peers amid a softer funding environment as
investor sentiment. In addition to targeting Russia’s key financial new biotech IPOs and venture capital funding were down
institutions, the U.S. and European allies also cut Russia from the significantly year-on-year in January.
SWIFT International Payment system. Germany also announced
it would be halting the certification of the Nord Stream 2 gas Within information technology, Infineon Technologies, a leading
pipeline from Russia. semiconductor company based in Germany, hampered relative
performance. Infineon is a leader in structural opportunities in
Emerging markets declined (-6.65%) with mixed returns across automotive and power markets. We believe this should continue
countries. Russian equities plunged as the broad range of to enable superior growth driven by content gains and
sanctions imposed on their economy weighed heavily on the supportive regulation. Despite solid quarterly earnings,
ruble and market returns. China sharply declined primarily in Infineon’s share price softened alongside semiconductor peers as
3 14857701William Blair Global Leaders Fund Summary & Outlook March 2022
a part of the broad style rotation early in the quarter. key international markets. The company offers a diverse set of
Management also reiterated that supply constraints continue to financial products to clients in the technology, life
limit overall growth, but shortages have started to ease. science/healthcare, and private equity/venture capital. The bank
has de-risked its loan book significantly over time, and should
Positive stock selection within the specialty retail industry the macro environment materially worsen, we would expect
within consumer discretionary was primarily driven by Ulta credit performance to outperform peers. This was offset by a
Beauty. We believe Ulta Beauty is well-positioned to expand decrease to communication services through the liquidation of
share in the structurally attractive beauty category, benefiting Tencent Holdings. Tencent remains the digital-life and dominant
from strong customer engagement due to its well-managed social engagement platform in China. We exited the position
loyalty program, a continued shift away from department stores, amid ongoing regulatory pressure in China.
and an expanding portfolio of products, including a higher mix of
more profitable prestige brands and skincare products. The Outlook
company has strong digital capabilities, coupled with an
attractive retail experience that continues to drive in-store As we begin the second quarter of 2022, we reflect on the unique
traffic, making Ulta’s business more defensible against environment we have experienced the last two years. The nature
disruption from online competitors. The share price of the economic cycle, originally due to the COVID pandemic, has
strengthened on strong fourth quarter results as top-line growth been exacerbated. We’ve experienced an extreme closing and
was primarily driven by better-than-expected holiday sales and a reopening of the global economy, accompanied by
rational promotional environment. unprecedented liquidity, and pronounced rotations in style –
first with growth outperforming strongly, and more recently
An overweight allocation to aerospace & defense companies value charging back. Finally, the Russian invasion of Ukraine
within industrials also helped offset underperformance. Within continues to impact the economy and the markets and in
aerospace & defense, MTU Aero Engines was strong for the response we have needed to reassess our outlook leading into
quarter. MTU is one of the world’s largest manufacturers of this year.
aircraft engine modules with an installed base of 22,000 aircraft,
which is approximately 34% of the global non-military aircraft Similar to our forecast earlier this year, we continue to see a
fleet. MTU’s profit growth is driven by its spare parts activity natural slowing of economic growth from very high levels seen in
which generates most of its earnings. As secular growth in air 2020; but also, rising inflation, which implies a further
traffic increases, demand for spare parts and maintenance, deceleration of earnings growth. We also continue to analyze the
repair, and overhaul services should follow. We continue to view rising interest rate environment and its relationship to
MTU as having an attractive risk/reward tradeoff, with near- valuations.
term upside potential as air traffic and economic growth
recovers post COVID-19. Growth – Post-Russian Invasion
Positioning In terms of growth, we continue to see risks of slower economic
and corporate profit growth than we had originally expected.
During the quarter, financials exposure increased through the Importantly, in contrast to our prior outlook, we now expect
purchase of SVB Financial Group. SVB is a California-based bank materially lower growth in Europe. Leading into the year, most
focused on the innovation economy across the United States and European economies remained much below their pre-pandemic
4 14857701William Blair Global Leaders Fund Summary & Outlook March 2022
output trajectory and now the Russian invasion of Ukraine has Valuation and Style Performance
created further downward pressure. Particularly in Eastern and
Central Europe, expanding past Russia, into Hungary and Poland, Thus far in 2022, we’ve seen one of the most significant style
we’ll expect continued acceleration in inflation, currencies under rotations we have experienced in multiple decades.
pressure and higher interest rates. Which leads us to a discussion regarding equity valuations. The
general relationship between rates and valuations holds, and
Within the U.S., we see less impact and expect growth to remain despite the influences of the conflict and persistent inflation, we
at broadly similar levels as in our pre-Russian invasion case, do believe that we are still in a long-term economic recovery.
which is a significant sequential deceleration in economic Thus, we expect gradual monetary tightening and removal of
activity, from approximately 5.5% growth that we observed in excess liquidity. Consequently, leading to further multiple
2021 down to closer to 2.5% growth rate by the end of the year. contraction as the expansion continues and rates go higher.
Corporate profit growth expectations seem reasonable and
remain at the highest level for most major countries. This has direct implications for the performance of Growth
equities vs Value equites, and we have seen this play out
Within China, our outlook is mixed. We’ve seen a resurgence of significantly in the beginning of 2022. Valuation as a factor has
COVID and lockdowns, which we expect to impact economic been by far the strongest driver of performance year to date.
activity and weakening of growth in the first half of this year,
Does this imply that the very long run of quality growth over
coupled with potential geopolitical risk. In contrast, we think the
value is over? We don’t think so. Many of the drivers of the
government’s focus on a stable economic environment will lead
outperformance of Growth are still in place: positive but lower
to a moderate fiscal and monetary stimulus as well as potential
economic growth, low (albeit rising) interest rates, and a
for some easing of regulatory pressures. Valuations in China are
competitive landscape in the real economy that acknowledges
also relatively attractive in our view, after a difficult 2021.
the structural advantages of some areas of the economy over
others, as well as those of differentiated, innovative business
Inflation
models. As it relates to interest rates, as measured by the 10-year
yield, we believe would need to meaningfully rise from current
The ongoing lockdowns and the military conflict that we now
levels (+300bps), to significantly affect relative future
have in Europe has prompted us to revise our inflation
profitability and future investment premium.
projections further. We originally expected inflation to peak in
early summer. We now expect inflation to peak at a higher rate in And as we look forward, what hasn’t changed? We think the
the later part of this year and to rollover thereafter. Of course, innovation and disruption cycle hasn’t changed, and arguably,
wage pressures were something that we were going to monitor has even accelerated. The dynamic shifting of corporate winners
on an ongoing basis, and that that remains a key variable to and losers remains a constant, and again, if anything, may be
watch in the U.S. What that means for equity markets, is that accelerated. Importantly, durability or improvements in
corporate earnings growth, especially outside the U.S., is corporate competitive advantage will likely remain
expected to decelerate further throughout much of 2022, which underappreciated.
will put further downward pressure on multiples.
We believe this environment will create an important backdrop
for active investing. Understanding companies with
differentiated business models, unique cultures and durable
5 14857701William Blair Global Leaders Fund Summary & Outlook March 2022
competitive advantages will increasingly be crucial to
determining investment performance in this complex
environment.
6 14857701Market Performance March 2022
QTD YTD 2021 2020
AC World (DM+EM) -5.5 -5.5 18.2 16.3
Developed Markets (DM) -5.3 -5.3 21.0 15.9
Pacific ex JP 3.0 3.0 5.8 8.5
Japan -6.7 -6.7 1.0 13.1
Europe ex UK -10.0 -10.0 15.7 12.1
Regions
UK -1.2 -1.2 17.6 -9.0
Canada 4.8 4.8 25.6 6.9
USA -5.4 -5.4 25.6 20.5
Emerging Markets (EM) -6.6 -6.6 -0.3 18.4
Asia -8.6 -8.6 -2.2 28.5
EMEA -12.2 -12.2 18.0 -5.6
Latin America 26.3 26.3 -8.5 -14.1
Frontier Markets (FM) -5.6 -5.6 25.4 2.1
Large Cap -5.1 -5.1 19.0 16.5
Size
Small Cap -6.2 -6.2 16.1 16.3
Communication Svcs -10.5 -10.5 10.2 23.2
Discretionary -11.6 -11.6 9.8 34.5
Staples -4.1 -4.1 10.4 8.5
Energy 22.6 22.6 37.6 -28.4
Sectors
Financials -0.8 -0.8 24.6 -3.5
Healthcare -4.9 -4.9 14.2 17.5
Industrials -6.3 -6.3 17.4 12.2
IT -10.4 -10.4 26.4 45.2
Materials 2.6 2.6 15.4 21.5
Real Estate -5.2 -5.2 22.5 -6.4
Utilities 1.2 1.2 10.3 4.1
Quality -3.2 -3.2 4.9 -8.9
Valuation 10.1 10.1 4.0 -10.3
Style
Etrend 0.7 0.7 23.8 6.6
Momentum -0.8 -0.8 20.6 10.3
Growth -3.1 -3.1 -3.6 6.0
Composite 3.3 3.3 15.9 -9.0
Past performance is not a reliable indicator of future results Regional performance is based on IMI region/country indexes. Sector and style values are based on
the MSCI ACWI IMI Index. Size values are based on the MSCI ACWI Index. Style values reflect the Quintile 1 minus Quintile 5 spread of William Blair’s proprietary
quantitative models. Sectors are based on Global Industry Classification (GICS) sectors. Large Cap and Small Cap based on MSCI Global Investable Market Index
Methodology. Data in blue reflects the top 20% (highest) values by region, country, sector, and style. Data in red reflects the bottom 20% (lowest) values by region,
country, sector, and style. A direct investment in an unmanaged index is not possible. Name change from Telecommunication Services to Communication Services
effective after close of business on 9/28/18; industry and subindustry reclassifications effective 10/1/18.
7 14857701William Blair Global Leaders Fund Performance March 2022
Since
Periods ended 3/31/2022 March Quarter 1 Year 3 Year 5 Year 10 Year Inception*
Global Leaders Fund (WGGNX) - Class N 0.43% -14.03% -0.77% 14.52% 13.98% 10.55% --
Global Leaders Fund (WGFIX) - Class I 0.48% -13.95% -0.54% 14.81% 14.27% 10.84% --
Global Leaders Fund (BGGIX) - Class R6 0.48% -13.94% -0.48% 14.86% 14.35% -- 11.55%
MSCI ACWI IMI (net) 2.04% -5.47% 6.30% 13.49% 11.37% 9.95% 10.27%
*Class R6 inception 12/19/2012
Class I and Class N inception 10/15/2007
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 returns, which assume reinvestment of dividends and capital
gains. Investment returns and principal will fluctuate with market and economic conditions and you may have a gain or loss when you
sell shares. For the most current month end performance information, please call 1-877-962-5247, or visit our Web site at
www.williamblairfunds.com. Class N shares are available to the general public without a sales load. Class I and Class R6 shares are
available only to investors who meet certain eligibility requirements.
Global Leaders Fund Expense Ratios:
Gross Net
Class N Shares 1.45% 1.15%
Class I Shares 1.12% 0.90%
Class R6 Shares 1.06% 0.85%
The Fund’s Adviser has contractually agreed to waive fees and/or reimburse expenses to limit fund operating expenses until 4/30/22.
Expenses shown are as of the most recent prospectus.
A direct investment in an index is not possible. MSCI All Country World IMI Index is a free float-adjusted market capitalization index that is designed
to measure equity market performance in the global developed and emerging markets.
8 14857701William Blair Global Leaders Fund Performance Analysis (by sector) March 2022
The table below shows the calculated sector attribution of the Global Leaders Fund vs. its benchmark.
Global Leaders Fund vs. MSCI ACWI IMI (net)
01/01/2022 to 03/31/2022
Global Leaders Fund MSCI ACWI IMI (net) Attribution Analysis
Issue
Average Total Contrib to Average Total Contrib to Allocation Selection Total
GICS Sector Weight Return Return Weight Return Return Effect Effect Effect
Communication Services 6.7% -16.0% -1.2% 7.7% -10.5% -0.8% 0.0% -0.4% -0.4%
Consumer Discretionary 16.2% -11.7% -1.7% 12.0% -11.6% -1.5% -0.2% 0.0% -0.2%
Consumer Staples 1.4% -26.3% -0.4% 6.7% -4.1% -0.3% -0.1% -0.3% -0.4%
Energy 1.4% 9.1% 0.1% 4.1% 22.6% 0.8% -0.6% -0.1% -0.7%
Financials 7.2% -10.2% -0.7% 14.7% -0.8% -0.1% -0.3% -0.6% -1.0%
Health Care 16.4% -13.7% -2.3% 11.3% -4.9% -0.6% 0.0% -1.4% -1.4%
Industrials 18.7% -12.3% -2.2% 10.7% -6.3% -0.7% -0.1% -1.1% -1.1%
Information Technology 27.5% -16.0% -4.4% 21.2% -10.4% -2.3% -0.3% -1.6% -1.8%
Materials 0.8% -24.5% -0.2% 5.3% 2.6% 0.1% -0.3% -0.2% -0.6%
Real Estate 0.8% -3.6% -0.1% 3.6% -5.2% -0.2% 0.0% 0.0% 0.0%
Utilities 1.2% -8.8% -0.1% 2.8% 1.2% 0.0% -0.1% -0.1% -0.2%
Cash 1.7% - 0.0% 0.0% 0.0% 0.0% 0.2% 0.0% 0.2%
Total 100.0% -13.1% -13.1% 100.0% -5.5% -5.5% -1.7% -6.0% -7.7%
Past performance does not guarantee future results. Performance cited represents past performance and current performance may be lower or higher
than the data quoted. Gross investment performance assumes reinvestment of dividends and capital gains, is gross of investment management fees and net of
transaction costs. Attribution by segment is based on estimated returns of equities held within the segments listed. All stocks held during a measurement period,
including purchases and sales, are included. Cash is not allocated among segments. Calculations are for attribution analysis only and are not intended to represent
simulated performance history. The actual returns may be higher or lower. We calculate attribution using our proprietary attribution system. Our proprietary
attribution system runs transactions-based attribution, taking into account all trading activity. Interaction effect is reallocated into Selection effect. Sectors are
based on Global Industry Classification (GICS) Sectors. International investing involves special risk considerations, including currency fluctuations, lower liquidity,
economic and political risk.
9 14857701William Blair Global Leaders Fund Performance Analysis (by region) March 2022
The table below shows the calculated regional attribution of the Global Leaders Fund vs. its benchmark.
Global Leaders Fund vs. MSCI ACWI IMI (net)
01/01/2022 to 03/31/2022
Global Leaders Fund MSCI ACWI IMI (net) Attribution Analysis
Issue
Average Total Contrib to Average Total Contrib to Allocation Selection Total
Region Weight Return Return Weight Return Return Effect Effect Effect
Pacific Ex Japan 5.9% -12.2% -0.7% 3.1% 3.8% 0.1% 0.2% -0.9% -0.7%
Japan 3.8% -25.5% -1.1% 6.0% -6.7% -0.4% 0.0% -0.8% -0.8%
Europe+ME Ex U.K. 23.5% -15.1% -3.4% 13.5% -9.5% -1.3% -0.4% -1.3% -1.7%
U.K. 4.8% -11.8% -0.5% 4.2% -3.3% -0.1% 0.0% -0.4% -0.4%
W Hemisphere 1.3% -6.7% -0.1% 3.3% 4.5% 0.1% -0.2% -0.1% -0.3%
United States 49.9% -12.9% -6.4% 58.3% -5.3% -3.1% 0.0% -3.7% -3.7%
EM Asia 7.2% -9.3% -0.6% 9.1% -8.8% -0.8% 0.1% -0.1% 0.0%
EMEA 0.0% 0.0% 0.0% 1.6% -12.1% -0.2% 0.1% 0.0% 0.1%
Latin America 1.8% -14.8% -0.3% 1.0% 22.9% 0.2% 0.2% -0.6% -0.4%
Cash 1.7% - 0.0% 0.0% 0.0% 0.0% 0.2% 0.0% 0.2%
Total 100.0% -13.1% -13.1% 100.0% -5.5% -5.5% 0.3% -8.0% -7.7%
Past performance does not guarantee future results. Performance cited represents past performance and current performance may be lower or higher
than the data quoted. Gross investment performance assumes reinvestment of dividends and capital gains, is gross of investment management fees and net of
transaction costs. Attribution by segment is based on estimated returns of equities held within the segments listed. All stocks held during a measurement period,
including purchases and sales, are included. Cash is not allocated among segments. Calculations are for attribution analysis only and are not intended to represent
simulated performance history. The actual returns may be higher or lower. We calculate attribution using our proprietary attribution system. Our proprietary
attribution system runs transactions-based attribution, taking into account all trading activity. Interaction effect is reallocated into Selection effect. International
investing involves special risk considerations, including currency fluctuations, lower liquidity, economic and political risk.
10 14857701William Blair Global Leaders Fund Top Contributors/Detractors March 2022
The tables below show the top contributors and detractors for the Global Leaders Fund portfolio vs. its benchmark.
Top Five Contributors (%) for the Period: 01/01/2022 to 03/31/2022
Issuer Sector Country Contribution To
Relative Return
MTU Aero Engines AG Industrials Germany 0.27
Union Pacific Corp Industrials United States 0.21
Reliance Industries Ltd Energy India 0.17
Mastercard Inc Information Technology United States 0.11
AIA Group Ltd Financials Hong Kong 0.10
Top Five Detractors (%) for the Period: 01/01/2022 to 03/31/2022
Issuer Sector Country Contribution To
Relative Return
Meta Platforms Inc Communication Services United States -0.44
Infineon Technologies AG Information Technology Germany -0.39
PayPal Holdings Inc Information Technology United States -0.36
Nihon M&A Center Holdings Inc Industrials Japan -0.34
Aptiv PLC Consumer Discretionary Ireland -0.34
Index: MSCI ACWI IMI (net)
Past performance does not guarantee future results. Performance cited represents past performance and current performance may be lower or higher
than the data quoted. Gross investment performance assumes reinvestment of dividends and capital gains, is gross of investment management fees and net of
transaction costs. Performance results will be reduced by the fees incurred. Attribution by is based on estimated returns of all equities held during a measurement
period, including purchases and sales. We calculate attribution using our proprietary attribution system. Our proprietary attribution system runs transactions-
based attribution, taking into account all trading activity. Sectors are based on Global Industry Classification (GICS) Sectors. Individual securities listed in this report
are for informational purposes only. Holdings are subject to change at any time. This information does not constitute, and should not be construed as, investment
advice or recommendations with respect to the securities listed. Specific securities identified and described do not represent all of the securities purchased, sold, or
recommended and you should not assume that investments in the securities identified were or will be profitable.
11 14857701William Blair Global Leaders Fund Positioning March 2022
Regional Exposure Sectoral Exposure
5.9 5.2 -1.4
Asia Ex-Japan 0.2 Communication Services
3.3 7.5
16.4 1.1
3.0 Consumer Discretionary
Japan -1.1 11.7
5.8
1.3 -0.2
24.4 Consumer Staples
1.2 6.6
Europe+ME Ex U.K.
13.0 1.6
Energy 0.3
4.9 4.4
United Kingdom 0.5
4.2 8.1 1.3
Financials
14.4
1.4 0.1
Western Hemisphere 16.9
3.4 Health Care 0.1
11.6
51.9 1.8 18.3
United States Industrials 0.2
59.0 10.6
5.1 -1.4 28.1 0.2
EM Asia Information Technology
8.7 21.2
0.8 -0.1
-- 0.0 Materials
EMEA 5.5
1.5
0.8 -0.3
Real Estate
1.9 0.0 3.6
Latin America
1.1 1.3
Utilities 0.1
2.9
1.4 -1.2
Cash & Equivalents --
-- Other 0.0
--
Portfolio Diff Previous QTR 1.4 -1.2
William Blair Global Leaders Fund MSCI ACWI IMI (net) Cash & Equivalents
--
Portfolio Diff Previous QTR
William Blair Global Leaders Fund MSCI ACWI IMI (net)
Source: William Blair.
Cash & Equivalents includes: cash and dividend accruals.
12 14857701William Blair Global Leaders Fund Top Holdings by Market Cap March 2022
The table below shows the Global Leaders Fund portfolio’s largest holdings as of 3/31/2022 by market cap as well as the sub-totals by
market cap for the portfolio and index. The stocks are listed by country and by the sector that defines each one’s role in the portfolio.
% of Total % of Total
Net Assets in Net Assets in
Country Sector Portfolio Index*
Large Cap(>$20b) 85.6% 71.2%
Microsoft Corp United States Information Technology 3.6% 2.9%
Alphabet Inc United States Communication Services 3.5% 2.2%
Amazon.com Inc United States Consumer Discretionary 3.2% 2.0%
Mastercard Inc United States Information Technology 3.0% 0.4%
Airbus SE France Industrials 2.4% 0.1%
Mid Cap($5-20b) 13.3% 16.8%
Hexagon AB Sweden Information Technology 2.2% 0.0%
MTU Aero Engines AG Germany Industrials 1.9% 0.0%
Charles River Laboratories Int United States Health Care 1.5% 0.0%
Aristocrat Leisure Ltd Australia Consumer Discretionary 1.5% 0.0%
Globant SA Argentina Information Technology 1.2% 0.0%
Small Cap(William Blair Global Leaders Fund Top Portfolio Changes March 2022
Top Portfolio Changes During the Period: 01/01/2022 to 03/31/2022
Security Name Country Sector
Svb Financial Group United States Financials
New Purchases
Smc Corp Japan Industrials
Liquidations
Shenzhou International Group China Consumer Discretionary
Tencent Holdings China Communication Services
Sectors are based on Global Industry Classification (GICS) Sectors. Individual securities listed in this report are for informational purposes only. Holdings are subject
to change at any time. This information does not constitute, and should not be construed as, investment advice or recommendations with respect to the securities
listed. Specific securities identified and described do not represent all of the securities purchased, sold, or recommended and you should not assume that investments
in the securities identified were or will be profitable.
14 14857701William Blair Global Leaders Fund Characteristics March 2022
Global Leaders Fund MSCI ACWI IMI (net) Difference
Quality
Return on Equity (%) 22.1 20.1 10%
Cash Flow ROIC (%) 21.9 21.1 4%
Debt/Equity (%) 77.0 92.4 -17%
Growth
Long-Term Growth (%) 21.1 16.5 28%
5-Year Historic EPS Growth (%) 17.5 16.9 3%
Reinvestment Rate (%) 21.7 20.3 7%
Earnings Trend
EPS Revision Breadth (%) 1.4 1.1 0.4
Valuation
P/E (next 12 months) 28.0 16.8 67%
Other
Float Adjusted Weighted Average Market Cap ($m) 256,539 316,496 -19%
Number of Holdings 67 9,220
Active Share (%) 85 --
Characteristics have been calculated by William Blair.
Please refer to the ‘Important Disclosures’ section of this document for further information on investment risks and returns.
15 14857701William Blair Global Leaders Fund Holdings March 2022
Portfolio Portfolio Portfolio
Country Weight Country Weight Country Weight
COMMUNICATION SERVICES 5.24 HEALTH CARE (continued) INFORMATION TECHNOLOGY (continued)
Alphabet Inc-Cl A United States 3.48 Idexx Laboratories Inc United States 1.37 Synopsys Inc United States 1.60
Meta Platforms Inc-Class A United States 1.75 Zoetis Inc United States 1.31 Atlassian Corp Plc-Class A Australia 1.41
CONSUMER DISCRETIONARY 16.38 Intuitive Surgical Inc United States 1.17 Keyence Corp Japan 1.25
Amazon.Com Inc United States 3.14 Csl Ltd Australia 1.01 Autodesk Inc United States 1.20
Compass Group PLC United Kingdom 2.19 Align Technology Inc United States 0.77 Globant SA Argentina 1.18
Ulta Beauty Inc United States 1.74 Fisher & Paykel Healthcare C New Zealand 0.59 Adobe Inc United States 1.14
Lvmh Moet Hennessy Louis Vui France 1.70 Veeva Systems Inc-Class A United States 0.50 Paypal Holdings Inc United States 0.95
Nike Inc -Cl B United States 1.51 INDUSTRIALS 18.27 Fidelity National Info Serv United States 0.60
Aptiv PLC Ireland 1.47 Airbus Se France 2.36 Halma PLC United Kingdom 0.41
Aristocrat Leisure Ltd Australia 1.46 Union Pacific Corp United States 2.10 MATERIALS 0.76
Lululemon Athletica Inc Canada 1.43 Mtu Aero Engines AG Germany 1.91 Ecolab Inc United States 0.76
Evolution AB Sweden 0.99 Atlas Copco Ab-A Shs Sweden 1.67 REAL ESTATE 0.81
Mercadolibre Inc Argentina 0.75 Dsv A/S Denmark 1.53 Prologis Inc United States 0.81
CONSUMER STAPLES 1.27 Roper Technologies Inc United States 1.27 UTILITIES 1.29
Estee Lauder Companies-Cl A United States 1.27 Experian PLC United Kingdom 1.26 Nextera Energy Inc United States 1.29
ENERGY 1.57 Daikin Industries Ltd Japan 1.15 Cash 1.40
Reliance Industries Ltd India 1.57 Costar Group Inc United States 1.05 Total 100.00
FINANCIALS 8.06 Rentokil Initial PLC United Kingdom 1.05
Intercontinental Exchange In United States 1.54 Ryanair Holdings Plc-Sp Adr Ireland 0.95
Partners Group Holding AG Switzerland 1.40 Indutrade AB Sweden 0.84
Aia Group Ltd Hong Kong 1.40 Nihon M&A Center Holdings In Japan 0.65
Blackrock Inc United States 1.38 Rational AG Germany 0.49
Hdfc Bank Ltd-Adr India 1.35 INFORMATION TECHNOLOGY 28.08
Svb Financial Group United States 0.99 Microsoft Corp United States 3.56
HEALTH CARE 16.87 Mastercard Inc - A United States 2.91
Unitedhealth Group Inc United States 1.95 Salesforce.Com Inc United States 2.33
Novo Nordisk A/S-B Denmark 1.87 Hexagon Ab-B Shs Sweden 2.20
Thermo Fisher Scientific Inc United States 1.80 Taiwan Semiconductor-Sp Adr Taiwan 2.20
Lonza Group Ag-Reg Switzerland 1.61 Infineon Technologies AG Germany 1.77
Charles River Laboratories United States 1.51 Workday Inc-Class A United States 1.70
Edwards Lifesciences Corp United States 1.42 Adyen NV Netherlands 1.66
As of 3/31/2022. Information about the Fund’s holdings should not be considered investment advice. There is no guarantee that the Fund will continue to hold any one
particular security or stay in any one particular sector. Holdings are subject to change at any time. Cash includes cash equivalents and accruals.
16 14857701Glossary - Terms
1 Month EPS Revision Breadth: 1-month factor representing the trend in the direction of estimate changes. Range from -100% to +100%, it is calculated as
the number of positive revisions minus the number of negative revisions divided by the total number of estimates.
Active Share: A measure of the percentage of equity holdings in a portfolio that differ from the benchmark index. It is calculated by taking the sum of the
absolute value of the differences of the weight of each holding in a portfolio versus the weight of each holding in the index and dividing by two.
Alpha: A measure of a portfolio’s return in excess of the market return, after both have been adjusted for risk. It is a mathematical estimate of the amount of
return expected from a portfolio above and beyond the market return at any point in time. For example, an alpha of 1.25 indicates that a stock is projected to
rise 1.25% in price in a year over the return of the market, or the return when the market return is zero. When an investment price is low relative to its alpha, it
is undervalued, and considered a good selection.
Beta: A quantitative measure of the volatility of the portfolio relative to the overall market, represented by a comparable benchmark. A beta above 1 is more
volatile than the overall market, while a beta below 1 is less volatile, and could be expected to rise and fall more slowly than the market.
Cash Flow Return on Invested Capital (ROIC): A measure of how effectively a company generates cash flow based on legacy capital investment.
Developed Markets: Using the Morgan Stanley Capital International (MSCI) geographic definition, this region includes: United Kingdom, Europe (Austria,
Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, Netherlands, Norway, Spain, Sweden and Switzerland), Japan, Pacific Asia (Australia, Hong
Kong, New Zealand, and Singapore) and the Western Hemisphere (Canada and other Americas).
Debt to Total Capital Ratio: This figure is the percentage of each company’s invested capital that consists of debt. Companies with a high Debt to Total Capital
level may be considered more risky. From a portfolio perspective, the portfolio Debt to Total Capital Ratio is a weighted average of the individual holdings' Debt
to Total Capital Ratio.
Emerging Markets: Using MSCI’s geographic definition, this region includes: Emerging Markets Asia (China, India, Indonesia, Malaysia, S Korea, Taiwan, and
Thailand), Emerging Markets Europe, Mid-East and Africa (Czech Republic, Hungary, Poland, Russia, Turkey, Egypt, Morocco, and S Africa), and Latin America
(Argentina, Brazil, Chile, Columbia, Mexico, Peru and Venezuela).
EPS (Earnings Per Share) Growth Rate (Projected): This measure represents the weighted average of forecasted growth in earnings expected to be
experienced by the stocks within the portfolio over the next 3-5 years. From a portfolio perspective, the portfolio P/E ratio and EPS Growth Rate are weighted
averages of the individual holdings’ P/E ratios and EPS Growth Rates. Data calculated in FactSet.
EPS Growth Rate - 5-Year Historic: The weighted average earnings per share growth for stock within the portfolio over the past 5 years.
EV/EBITDA: (Enterprise Value / Earnings Before Interest, Taxes and Depreciation-Amortization): The EV/EBITDA ratio is useful for global comparisons
because it ignores the distorting effects of individual countries' taxation policies. It's used to find attractive takeover candidates. Enterprise value is a better
measure than market cap for takeovers because it takes into account the debt which the acquirer will have to assume. Therefore, a company with a low
EV/EBITDA ratio can be viewed as a good takeover candidate.
EV/IC: (Enterprise Value / Invested Capital) Ratio: Enterprise Value (EV), which is market capitalization minus cash plus debt divided by Invested Capital
(IC), which is the sum of common stock, preferred stock and long-term debt. This number will get you a simple multiple. If it is below 1.0, then it means that the
company is selling below book value and theoretically below its liquidation value.
17 14857701Glossary - Terms
Information Coefficient: A measure of the correlation between expected and actual returns.
Information Ratio: A measure of risk-adjusted return. The annualized excess return of the portfolio relative to a respective benchmark, divided by the
annualized tracking error relative to that same benchmark. The higher the measure, the higher the risk-adjusted return.
PBV: (Price/Book Value) Ratio: The PBV Ratio measures the value of a company's common stock relative to its shareholder's equity. A price-to-book multiple
above one means that the price of the company's common stock is higher than its common shareholder's equity. A price-to-book multiple below one means that
the price of the company's common stock are less than its break-up value, and the shares may be undervalued.
PCF: (Price/CashFlow): Some analysts favor the price/cash flow over the price-earnings (PE) ratio as a measure of a company’s value. Cash flow is a measure
of a company's financial health. It equals cash receipts minus cash payments over a given period of time.
P/E: (Price/Earnings) Ratio: This is the most common measure of how expensive a stock is. Simply, it is the cost an investor in a given stock must pay per
dollar of current annual earnings. A high P/E generally indicates that the market is paying more to obtain the stock because it has confidence in the company’s
ability to increase its earnings. Conversely, a low P/E often indicates that the market has less confidence that the company’s earnings will increase rapidly or
steadily, and therefore will not pay as much for its stock.
R-squared: A measurement of how closely the portfolio’s performance correlates with the performance of its benchmark, such as the MSC AC World Free ex US
Index. In other words, it is a measurement of what portion of a portfolio’s performance can be explained by the performance of the overall market or index.
Ranges from 0 to 1, where 0 indicates no correlation and 1 indicates perfect correlation.
Risk (Standard Deviation): A measure of the portfolio’s risk. A higher standard deviation represents a greater dispersion of returns, and thus a greater
amount of risk. The annualized standard deviation is calculated using monthly returns.
Sharpe-Ratio: A risk-adjusted measure calculated using standard deviation and excess return (Portfolio return – Risk Free Rate) to determine reward per unit
of risk. The higher the Sharpe ratio, the better the portfolio’s historic risk-adjusted performance.
Tracking Error: Tracking Error measures the extent to which a portfolio tracks its benchmark. The tracking error of an index portfolio should be lower than
that of an active portfolio. The tracking error will always be greater than zero if the portfolio is anything other than a replication of the benchmark.
Trailing 1-Year Turnover: This figure reflects the portfolio’s trading activity by calculating the amount of the portfolio’s holdings bought or sold over the prior
year, expressed as a percentage of the portfolio’s average market value. Turnover figures may be related to the amount of trading costs experienced by the
portfolio.
Weighted Average Market Capitalization: Market capitalization refers to the total market value of each company's outstanding shares. The Weighted
Average Market Capitalization for a portfolio is calculated as the average market capitalization of the stocks within the portfolio, weighted by the amount of each
stock owned.
Weighted Median Market Capitalization: This calculation represents the median market capitalization of the stocks in the portfolio, weighted by the amount
of each stock owned.
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