International Growth Fund - Portfolio Review March 2022 Portfolio Managers
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International Growth Fund
Portfolio Review
March 2022
Simon Fennell, Partner
Kenneth J. McAtamney, Partner
Andrew Siepker, CFA, Partner
Portfolio Managers
14846995William Blair International Growth 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’s returns will vary, and you could lose money by investing in the Fund. International investing involves special risk
considerations, including currency fluctuations, lower liquidity, economic and political risk. Investing in emerging markets can
increase these risks, including higher volatility and lower liquidity. Investing in smaller and medium capitalization companies
involves special risks, including higher volatility and lower liquidity. Small and mid-cap stocks are also more sensitive to
purchase/sale transactions and changes in the issuer’s financial condition. The Fund invests most of its assets in equity securities of
international growth companies where the primary risk is that the value of the equity securities it holds might decrease in response
to the activities of those companies or market and economic conditions. 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.
Most recent month-end performance information for the Fund is available by visiting the William Blair Funds Web site at
www.williamblairfunds.com, or by calling the William Blair Funds at 1-800-742-7272.
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 14846995William Blair International Growth Fund Summary & Outlook March 2022
Market Review sanctions imposed on their economy weighed heavily on the
ruble and market returns. China sharply declined primarily in
After a strong performance in 2021, global equities declined March (-14.27% for the quarter) amid a spike in COVID-19 cases
(-5.47%) in the first quarter (as measured by the MSCI ACWI and newly imposed lockdowns across major cities. Conversely,
IMI) amid increased market volatility induced by concerns over Latin America generated strong returns for the quarter
inflation, rising interest rates, and heightened geopolitical (+26.34%) with broad outperformance across countries. Oil
tension in Eastern Europe. In January, concerns over rising exporters and commodity beneficiaries such as South Africa
inflation and hawkish moves by the Federal Reserve drove a (+19.30%), Kuwait (+18.56%), and Saudi Arabia (+16.64%), also
sharp style rotation into lower-value, lower- growth-oriented outperformed.
securities. Volatility continued in February as the Russian
invasion of Ukraine prompted a coordinated response by Performance
Western countries in the form of firm sanctions targeted at
Russia’s financial system. The sanctions on Russia rendered Underperformance of the International Growth Fund (Class N)
Russian equities and the ruble un-investable with fears of versus the MSCI ACWI ex US IMI index was primarily driven by
contagion to other markets. In this environment, growth equities negative stock selection across most sectors. The industrials and
significantly underperformed value-oriented equities (the MSCI healthcare sectors were the largest sources of negative relative
ACWI IMI Growth declined -9.83% while the MSCI ACWI IMI returns.
Value declined -1.08%). This was evident from a global sector
perspective as consumer discretionary (-11.63%) and Within healthcare, WuXi Biologics and Straumann detracted
information technology (-10.37%) declined while energy stocks from relative returns. WuXi Biologics offers a full range of
strengthened (+22.64%) on stronger crude oil prices. research and manufacturing services for biologic drugs designed
to help clients improve R&D efficiency, shorten development
Developed markets declined (-5.32%) as measured by the MSCI timelines, and lower costs. The company was added to the U.S.
World IMI. U.S. equities declined (-5.38%) as the Russian Commerce Department’s Unverified List, and is therefore
invasion of Ukraine amplified existing concerns over rising restricted from purchasing bioreactors and hollow fiber filters
inflation and interest rates. The Federal Reserve approved its from U.S. suppliers because regulators have not been able to
first interest rate increase (0.25%) in over three years with verify appropriate (i.e. non-defense related) end-market use due
further hikes expected throughout the rest of the year. Europe to inability to conduct an on-site inspection. While this
ex-U.K. plunged (-10.04%) as heightened concerns over the restriction appears to be manageable from a fundamental
availability of Russian energy imports to Europe weighed on perspective, the geopolitical risk is likely to remain at the
investor sentiment. In addition to targeting Russia’s key financial forefront of investment considerations for the stock for an
institutions, the U.S. and European allies also cut Russia from the extended period, limiting upside potential from valuation
SWIFT International Payment system. Germany also announced expansion should the company be able to successfully resolve
it would be halting the certification of the Nord Stream 2 gas this issue and continue along its growth trajectory. The position
pipeline from Russia. was sold as a result.
Emerging markets declined (-6.65%) with mixed returns across Straumann was an additional source of underperformance as the
countries. Russian equities plunged as the broad range of company’s stock price declined despite finishing 2021 on a high
3 14846995William Blair International Growth Fund Summary & Outlook March 2022
note with over 20% organic growth in the fourth quarter and digital services business with strong ecosystem benefits as a
second-half profitability coming in ahead of estimates. The dominant provider of connectivity, content, and commerce.
company is the global leader in esthetic dentistry, and the
categories that the company participates in–implants, clear Tenaris, the global leader in seamless pipe used for drilling oil
aligners, and digital dentistry–are growing well above global and gas wells, was another source of outperformance within the
dental market rates. Straumann is more than just a products sector. Fourth-quarter earnings increased by 27% sequentially
company. As a total solution provider, it offers training, support, and margins expanded, leading to results that were better than
and a wide range of services to the dental industry all over the consensus. The company is executing well, managing cost
world. In addition, the company is investing in technology and inflation, keeping utilization high, and gaining market share. In
expanding capacity to make clear aligners a second long-term addition, we see room to improve operations from digitalization
growth pillar. and production efficiencies going forward.
Within the industrials sector, Atlas Copco detracted from relative Positioning
results. Atlas Copco is a well-managed, consistently profitable
provider of compressors, vacuum solutions, and air treatment For the period, financials exposure was increased through the
systems within the industrials sector. The company reported purchases of several leading banks, including Toronto Dominion
solid quarterly results despite supply chain constraints Bank, DBS Group, and KBC Group. TD is the largest Canadian
impacting growth. New orders were up 26%, but operating profit bank and the fifth-largest in North America. The company has
margins fell short of expectations as supply chain constraints proved to be a high-quality compounder, benefitting from an
and COVID-related labor challenges weighed on profits. The oligopolistic market structure that leads to high returns on
company continues to offer a sustainable growth profile with an equity with strong gearing to higher interest rates. DBS is the
enviable business model and strong competitive advantages. The largest bank in Singapore with a strong presence across Asia.
near term will likely be choppy, but backlogs are swelling as The Singapore market is highly rationale and dominated by three
deliveries significantly lag orders. As a result, near-term growth local market banks that have between 60% and 70% market
will be held back but the length of the upcycle will likely be share across product lines. DBS has an exceptional deposit
extended. franchise, and with a CASA (Current Account Savings Account)
ratio of 75%, it stands out on a global basis. KBC is a retail-
Partially offsetting these effects was an underweight to emerging focused bank and insurer based in Belgium with operations in
markets coupled with positive stock selection within the energy five core markets: Belgium, Czech Republic, Slovakia, Hungary,
sector. Within energy, Reliance Industries and Tenaris added to and Bulgaria. It is one of the most well capitalized banks in
relative results. Reliance is an Indian conglomerate with diverse Europe and has a top four position in each of its core markets.
businesses in energy, telecom, and retail businesses. It benefited These increases were primarily offset by a decrease to the
from the COVID re-opening in India, leading to positive operating information technology, industrials, and consumer discretionary
leverage across its businesses and record earnings. Reliance’s sectors. From a geographic perspective, notable adjustments
ongoing transformation from an asset and capex heavy cyclical were increases to the U.K., offset by a reduction in Emerging
energy business to more diversified, end-consumer business Markets Asia. The portfolio’s weighting in Emerging Markets
with a large and expanding total addressable market- is approximated 18% at the end of the period, down 2% from the
underappreciated, in our view. We believe the market beginning of the year.
underestimates the monetization potential at Jio, its telecom and
4 14846995William Blair International Growth Fund Summary & Outlook March 2022
Outlook Corporate profit growth expectations seem reasonable and
remain at the highest level for most major countries.
As we begin the second quarter of 2022, we reflect on the unique
environment we have experienced the last two years. The nature Within China, our outlook is mixed. We’ve seen a resurgence of
of the economic cycle, originally due to the COVID pandemic, has COVID and lockdowns, which we expect to impact economic
been exacerbated. We’ve experienced an extreme closing and activity and weakening of growth in the first half of this year,
reopening of the global economy, accompanied by coupled with potential geopolitical risk. In contrast, we think the
unprecedented liquidity, and pronounced rotations in style – government’s focus on a stable economic environment will lead
first with growth outperforming strongly, and more recently to a moderate fiscal and monetary stimulus as well as potential
value charging back. Finally, the Russian invasion of Ukraine for some easing of regulatory pressures. Valuations in China are
continues to impact the economy and the markets and in also relatively attractive in our view, after a difficult 2021.
response we have needed to reassess our outlook leading into Inflation
this year.
The ongoing lockdowns and the military conflict that we now
Similar to our forecast earlier this year, we continue to see a have in Europe has prompted us to revise our inflation
natural slowing of economic growth from very high levels seen in projections further. We originally expected inflation to peak in
2020; but also, rising inflation, which implies a further early summer. We now expect inflation to peak at a higher rate in
deceleration of earnings growth. We also continue to analyze the the later part of this year and to rollover thereafter. Of course,
rising interest rate environment and its relationship to wage pressures were something that we were going to monitor
valuations. on an ongoing basis, and that that remains a key variable to
Growth – Post-Russian Invasion watch in the U.S. What that means for equity markets, is that
corporate earnings growth, especially outside the U.S., is
In terms of growth, we continue to see risks of slower economic expected to decelerate further throughout much of 2022, which
and corporate profit growth than we had originally expected. will put further downward pressure on multiples.
Importantly, in contrast to our prior outlook, we now expect
materially lower growth in Europe. Leading into the year, most Valuation and Style Performance
European economies remained much below their pre-pandemic Thus far in 2022, we’ve seen one of the most significant style
output trajectory and now the Russian invasion of Ukraine has rotations we have experienced in multiple decades.
created further downward pressure. Particularly in Eastern and
Central Europe, expanding past Russia, into Hungary and Poland, Which leads us to a discussion regarding equity valuations. The
we’ll expect continued acceleration in inflation, currencies under general relationship between rates and valuations holds, and
pressure and higher interest rates. despite the influences of the conflict and persistent inflation, we
do believe that we are still in a long-term economic recovery.
Within the U.S., we see less impact and expect growth to remain Thus, we expect gradual monetary tightening and removal of
at broadly similar levels as in our pre-Russian invasion case, excess liquidity. Consequently, leading to further multiple
which is a significant sequential deceleration in economic contraction as the expansion continues and rates go higher.
activity, from approximately 5.5% growth that we observed in
2021 down to closer to 2.5% growth rate by the end of the year. This has direct implications for the performance of Growth
equities vs Value equites, and we have seen this play out
5 14846995William Blair International Growth Fund Summary & Outlook March 2022
significantly in the beginning of 2022. Valuation as a factor has And as we look forward, what hasn’t changed? We think the
been by far the strongest driver of performance year to date. innovation and disruption cycle hasn’t changed, and arguably,
has even accelerated. The dynamic shifting of corporate winners
Does this imply that the very long run of quality growth over and losers remains a constant, and again, if anything, may be
value is over? We don’t think so. Many of the drivers of the accelerated. Importantly, durability or improvements in
outperformance of Growth are still in place: positive but lower corporate competitive advantage will likely remain
economic growth, low (albeit rising) interest rates, and a underappreciated.
competitive landscape in the real economy that acknowledges
the structural advantages of some areas of the economy over We believe this environment will create an important backdrop
others, as well as those of differentiated, innovative business for active investing. Understanding companies with
models. As it relates to interest rates, as measured by the 10-year differentiated business models, unique cultures and durable
yield, we believe would need to meaningfully rise from current competitive advantages will increasingly be crucial to
levels (+300bps), to significantly affect relative future determining investment performance in this complex
profitability and future investment premium. environment.
6 14846995Market 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 14846995William Blair International Growth Fund Performance March 2022
Since
Periods ended 3/31/2022 Quarter 1 Year 3 Year 5 Year 10 Year Inception*
International Growth Fund (WBIGX) – Class N -15.76% -7.20% 11.39% 9.21% 7.18% --
International Growth Fund (BIGIX) – Class I -15.69% -6.92% 11.73% 9.54% 7.51% --
International Growth Fund (WBIRX) – Class R6 -15.68% -6.84% -- -- -- 11.06%
MSCI AC World ex US IMI (net) -5.60% -1.27% 7.87% 6.92% 5.78% 7.10%
Class N inception: 10/1/1992
Class I inception: 10/1/1999
*Class R6 inception: 5/2/2019
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.
International Growth Fund Expense Ratios:
Gross Net
Class N Shares 1.47% 1.45%
Class I Shares 1.16% 1.16%
Class R6 Shares 1.07% 1.07%
Expenses shown are as of the most recent prospectus.
The Fund’s Adviser has contractually agreed to waive fees and/or reimburse expenses to limit fund operating expenses until 4/30/22.
A direct investment in an index is not possible. The MSCI All Country World ex-US 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, excluding the US.
8 14846995William Blair International Growth Fund Performance Analysis (by sector) March 2022
The table below shows the calculated sector attribution of the International Growth Fund vs. its benchmark.
International Growth Fund vs. MSCI AC World ex US IMI (net)
01/01/2022 to 03/31/2022
International Growth Fund MSCI AC World ex US 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 2.5% -27.9% -0.8% 6.0% -6.7% -0.4% 0.0% -0.6% -0.6%
Consumer Discretionary 10.7% -15.5% -1.7% 11.7% -14.0% -1.7% 0.1% -0.3% -0.2%
Consumer Staples 2.9% -13.8% -0.4% 8.1% -6.9% -0.6% 0.1% -0.2% -0.1%
Energy 3.3% 7.4% 0.2% 5.0% 8.3% 0.4% -0.2% 0.0% -0.2%
Financials 12.7% -4.4% -0.5% 19.0% 1.1% 0.2% -0.6% -0.4% -1.0%
Health Care 13.4% -20.2% -2.8% 8.7% -6.4% -0.6% -0.1% -1.9% -1.9%
Industrials 26.6% -14.5% -3.9% 13.4% -8.3% -1.1% -0.4% -1.7% -2.1%
Information Technology 19.7% -18.7% -3.9% 12.4% -14.8% -2.0% -0.7% -0.9% -1.6%
Materials 3.5% -18.7% -0.7% 9.0% 4.4% 0.4% -0.5% -0.8% -1.3%
Real Estate 1.2% -9.5% -0.1% 3.6% -3.7% -0.1% 0.0% -0.1% -0.1%
Utilities 0.9% 1.6% 0.0% 3.2% -2.0% -0.1% -0.1% 0.0% 0.0%
Cash 2.6% - 0.0% 0.0% 0.0% 0.0% 0.1% 0.0% 0.1%
Total 100.0% -14.6% -14.6% 100.0% -5.6% -5.6% -2.3% -6.7% -9.0%
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 14846995William Blair International Growth Fund Performance Analysis (by region) March 2022
The table below shows the calculated regional attribution of the International Growth Fund vs. its benchmark.
International Growth Fund vs. MSCI AC World ex US IMI (net)
01/01/2022 to 03/31/2022
International Growth Fund MSCI AC World ex US 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 4.1% -8.2% -0.3% 7.7% 3.9% 0.3% -0.3% -0.5% -0.7%
Japan 8.4% -21.3% -2.0% 14.9% -6.7% -1.0% 0.0% -1.5% -1.4%
Europe+ME Ex U.K. 46.9% -17.3% -8.3% 31.4% -9.4% -3.1% -0.5% -3.9% -4.4%
U.K. 12.4% -15.0% -1.8% 9.5% -2.7% -0.2% 0.1% -1.4% -1.3%
W Hemisphere 5.2% -1.4% 0.1% 7.8% 4.7% 0.3% -0.2% -0.2% -0.4%
EM Asia 17.5% -12.9% -2.3% 22.4% -8.7% -2.0% 0.2% -0.8% -0.6%
EMEA 0.6% -14.0% -0.1% 4.1% -12.1% -0.5% 0.2% -0.1% 0.1%
Latin America 2.3% 3.9% 0.1% 2.3% 26.3% 0.5% 0.0% -0.3% -0.3%
Cash 2.6% - 0.0% 0.0% 0.0% 0.0% 0.1% 0.0% 0.1%
Total 100.0% -14.6% -14.6% 100.0% -5.6% -5.6% -0.4% -8.6% -9.0%
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 14846995William Blair International Growth Fund Top Contributors/Detractors March 2022
The tables below show the top contributors and detractors for the International Growth Fund vs. its benchmark.
Top Five Contributors (%) for the Period: 01/01/2022 to 03/31/2022
Issuer Sector Country Contribution To
Relative Return
Canadian National Railway Co Industrials Canada 0.26
MTU Aero Engines AG Industrials Germany 0.23
Reliance Industries Ltd Energy India 0.20
Bank Central Asia Tbk PT Financials Indonesia 0.18
London Stock Exchange Group PL Financials United Kingdom 0.16
Top Five Detractors (%) for the Period: 01/01/2022 to 03/31/2022
Issuer Sector Country Contribution To
Relative Return
Sika AG Materials Switzerland -0.25
Atlas Copco AB Industrials Sweden -0.25
MediaTek Inc Information Technology Taiwan -0.24
Ashtead Group PLC Industrials United Kingdom -0.23
Wuxi Biologics Cayman Inc Health Care China -0.22
Index: MSCI AC World ex US 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 14846995William Blair International Growth Fund Positioning March 2022
Regional Exposure Sectoral Exposure
4.6 1.8
Communication Services -1.9
Asia Ex-Japan 1.4 5.9
8.2
9.5
Consumer Discretionary -2.3
7.6 11.1
Japan -2.5 2.9
14.7 Consumer Staples 0.4
8.0
47.0 Energy 3.9
Europe+ME Ex U.K. -1.4 5.1 1.4
30.9
14.3
Financials 5.7
13.7 19.2
United Kingdom 1.6
9.7 Health Care 14.0
8.9 0.1
6.4 25.9
Western Hemisphere 3.0 Industrials -1.8
8.2 13.4
Information Technology 18.6
12.2 -2.4
14.7
EM Asia -3.4
22.0 4.3
Materials 0.7
9.3
0.5 1.2
EMEA -0.1 Real Estate -0.2
3.7 3.7
Utilities 1.0
3.0 3.2 0.2
Latin America 1.2
2.6 Other --
-- 0.0
2.6 2.6
Cash & Equivalents 0.2 Cash & Equivalents 0.2
-- --
International Growth Fund MSCI AC World ex US IMI (net) Portfolio Diff Prev QTR
International Growth Fund MSCI AC World ex US IMI (net) Portfolio Diff Prev QTR
Source: William Blair.
Cash & Equivalents includes: cash and dividend accruals.
12 14846995William Blair International Growth Fund Top Holdings by Market Cap March 2022
The table below shows the International Growth Fund’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) 61.6% 54.0%
Canadian National Railway Co Canada Industrials 2.5% 0.3%
AIA Group Ltd Hong Kong Financials 2.1% 0.4%
Reliance Industries Ltd India Energy 2.1% 0.3%
ASML Holding NV Netherlands Information Technology 2.0% 0.9%
Airbus SE France Industrials 1.9% 0.2%
Mid Cap($5-20b) 26.0% 24.9%
MTU Aero Engines AG Germany Industrials 1.8% 0.0%
ICON PLC Ireland Health Care 1.2% 0.0%
Hexagon AB Sweden Information Technology 1.1% 0.1%
Croda International PLC United Kingdom Materials 0.9% 0.0%
Kingspan Group PLC Ireland Industrials 0.9% 0.1%
Small Cap(William Blair International Growth Fund Top Portfolio Changes March 2022
Top Portfolio Changes During the Period: 01/01/2022 to 03/31/2022
Security Name Country Sector
Novo Nordisk A/S-B Denmark Health Care
Purchases
Infosys Ltd India Information Technology
New
Toronto-Dominion Bank Canada Financials
Kbc Group Nv Belgium Financials
Astrazeneca Plc United Kingdom Health Care
Omron Corp Japan Information Technology
Liquidations
Ping An Insurance Group Co-H China Financials
Alibaba Group Holding Ltd China Consumer Discretionary
Sea Ltd-Adr Indonesia Communication Services
Wuxi Biologics Cayman Inc China Health Care
Sectors are based on Global Industry Classification (GICS) Sectors. Individual securities listed in this report are for informational purposes only. Holdings are subject
to change at any time. This information does not constitute, and should not be construed as, investment advice or recommendations with respect to the securities
listed. Specific securities identified and described do not represent all of the securities purchased, sold, or recommended and you should not assume that investments
in the securities identified were or will be profitable.
14 14846995William Blair International Growth Fund Characteristics March 2022
International Growth Fund MSCI AC World ex US IMI (net) Difference
Quality
Return on Equity (%) 18.5 16.5 12%
Cash Flow ROIC (%) 18.0 16.5 9%
Debt/Equity (%) 66.9 88.0 -24%
Growth
Long-Term Growth (%) 20.3 16.3 25%
5-Year Historic EPS Growth (%) 9.3 8.6 8%
Reinvestment Rate (%) 13.5 11.0 23%
Earnings Trend
EPS Revision Breadth (%) -0.9 -1.2 0.4
Valuation
P/E (next 12 months) 24.8 13.5 84%
Other
Float Adjusted Weighted Average Market Cap ($m) 56,198 62,206 -10%
Number of Holdings 168 6,656
Active Share (%) 86 --
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 14846995William Blair International Growth Fund Holdings March 2022
Portfolio Portfolio Portfolio
Weight Weight Weight
Pacific Ex Japan 4.57 Japan (continued) Europe+ME Ex UK (continued)
Australia 1.74 Japan (continued) Germany 4.79
Atlassian Corp Plc-Class A 0.84 Harmonic Drive Systems Inc 0.13 Mtu Aero Engines AG 1.71
Aristocrat Leisure Ltd 0.55 Sms Co Ltd 0.12 Infineon Technologies AG 0.93
Pro Medicus Ltd 0.18 Europe+ME Ex UK 47.04 Puma Se 0.63
Netwealth Group Ltd 0.17 Belgium 1.05 Carl Zeiss Meditec Ag - Br 0.45
Hong Kong 2.08 Kbc Group NV 0.83 Cts Eventim Ag & Co Kgaa 0.40
Aia Group Ltd 2.08 Warehouses De Pauw Sca 0.22 Nemetschek Se 0.24
Singapore 0.75 Denmark 5.01 Compugroup Medical Se & Co K 0.18
Dbs Group Holdings Ltd 0.75 Novo Nordisk A/S-B 1.57 Hypoport Se 0.12
Japan 7.60 Dsv A/S 1.26 Kion Group AG 0.12
Japan 7.60 Genmab A/S 0.68 Ireland 2.89
Keyence Corp 1.12 Orsted A/S 0.53 Icon PLC 1.17
Olympus Corp 0.91 Coloplast-B 0.45 Kingspan Group PLC 0.87
Daikin Industries Ltd 0.78 Royal Unibrew 0.27 Ryanair Holdings Plc-Sp Adr 0.84
Hoya Corp 0.70 Chr Hansen Holding A/S 0.25 Israel 0.69
Smc Corp 0.52 Finland 0.81 Nice Ltd - Spon Adr 0.29
Tis Inc 0.37 Neste Oyj 0.81 Mizrahi Tefahot Bank Ltd 0.22
Monotaro Co Ltd 0.36 France 10.63 Inmode Ltd 0.19
M3 Inc 0.34 Airbus Se 1.88 Italy 1.12
Technopro Holdings Inc 0.31 Safran SA 1.33 Finecobank Spa 0.37
Misumi Group Inc 0.28 Lvmh Moet Hennessy Louis Vui 1.13 Amplifon Spa 0.28
Nihon M&A Center Holdings In 0.27 L'Oreal 1.09 Moncler Spa 0.25
Shift Inc 0.26 Teleperformance 1.07 Brunello Cucinelli Spa 0.22
Asahi Intecc Co Ltd 0.25 Kering 0.97 Luxembourg 1.29
Gmo Payment Gateway Inc 0.23 Dassault Systemes Se 0.95 Eurofins Scientific 0.69
Food & Life Companies Ltd 0.18 Vinci SA 0.92 Tenaris SA 0.60
Benefit One Inc 0.18 Sartorius Stedim Biotech 0.70 Netherlands 3.86
Disco Corp 0.16 Hermes International 0.58 Asml Holding NV 1.97
Rakus Co Ltd 0.13 Adyen NV 1.03
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 14846995William Blair International Growth Fund Holdings March 2022
Portfolio Portfolio Portfolio
Weight Weight Weight
Europe+ME Ex UK (continued) Europe+ME Ex UK (continued) UK (continued)
Netherlands (continued) Switzerland (continued) United Kingdom (continued)
Imcd NV 0.34 Sika Ag-Reg 1.52 Diploma PLC 0.22
Euronext NV 0.33 Partners Group Holding AG 1.15 Softcat PLC 0.21
Be Semiconductor Industries 0.19 Straumann Holding Ag-Reg 0.78 Cvs Group PLC 0.17
Norway 0.56 Sig Combibloc Group AG 0.35 Renishaw PLC 0.14
Tomra Systems Asa 0.27 Vat Group AG 0.31 Trustpilot As 0.01
Gjensidige Forsikring Asa 0.15 Tecan Group Ag-Reg 0.28 W Hemisphere 6.44
Autostore Holdings Ltd 0.14 Siegfried Holding Ag-Reg 0.25 Canada 6.44
Spain 1.99 Belimo Holding Ag-Reg 0.25 Canadian Natl Railway Co 2.48
Amadeus It Group SA 1.53 Bachem Holding Ag-Reg B 0.16 Toronto-Dominion Bank 1.18
Edp Renovaveis SA 0.46 UK 13.67 Lululemon Athletica Inc 0.91
Sweden 5.67 United Kingdom 13.67 Intact Financial Corp 0.79
Atlas Copco Ab-A Shs 1.17 Compass Group PLC 1.57 Toromont Industries Ltd 0.34
Hexagon Ab-B Shs 1.04 London Stock Exchange Group 1.45 Parkland Corp 0.28
Eqt AB 0.50 Ashtead Group PLC 1.22 Kinaxis Inc 0.28
Evolution AB 0.43 Astrazeneca PLC 1.07 Canada Goose Holdings Inc 0.19
Lifco Ab-B Shs 0.37 Experian PLC 0.92 EM Asia 14.67
Nibe Industrier Ab-B Shs 0.37 Croda International PLC 0.92 China 2.90
Indutrade AB 0.32 Linde PLC 0.82 Tencent Holdings Ltd 1.02
Investment Ab Latour-B Shs 0.27 Rentokil Initial PLC 0.77 Li Ning Co Ltd 0.83
Beijer Ref AB 0.24 Halma PLC 0.76 Foshan Haitian Flavouring -A 0.26
Vitrolife AB 0.21 Segro PLC 0.69 Proya Cosmetics Co Ltd-A 0.23
Thule Group Ab/The 0.20 Spirax-Sarco Engineering PLC 0.49 Naura Technology Group Co-A 0.20
Nolato Ab-B Shs 0.17 3i Group PLC 0.43 Silergy Corp 0.18
Sweco Ab-B Shs 0.16 Intermediate Capital Group 0.43 Chacha Food Co Ltd-A 0.18
Hemnet Group AB 0.13 Rotork PLC 0.39 India 6.82
Bico Group AB 0.09 Intertek Group PLC 0.38 Reliance Industries Ltd 2.07
Switzerland 6.68 Aveva Group PLC 0.34 Infosys Ltd 1.39
Lonza Group Ag-Reg 1.63 Big Yellow Group PLC 0.26 Hdfc Bank Limited 1.09
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.
17 14846995William Blair International Growth Fund Holdings March 2022
Portfolio Portfolio
Weight Weight
EM Asia (continued) Latin America (continued)
India (continued) Brazil 0.75
Interglobe Aviation Ltd 0.37 B3 Sa-Brasil Bolsa Balcao 0.38
Voltas Ltd 0.26 Hapvida Participacoes E Inve 0.22
Dr Lal Pathlabs Ltd 0.24 Locaweb Servicos De Internet 0.16
Pidilite Industries Ltd 0.23 Mexico 1.17
Havells India Ltd 0.22 Walmart De Mexico Sab De Cv 0.91
Upl Ltd 0.21 Grupo Aeroportuario Sur-Adr 0.25
Crompton Greaves Consumer El 0.19 Uruguay 0.14
Info Edge India Ltd 0.19 Dlocal Ltd 0.14
Petronet Lng Ltd 0.19 Cash 2.55
Apollo Hospitals Enterprise 0.18 Total 100.00
Indonesia 1.59
Bank Central Asia Tbk Pt 1.59
South Korea 0.38
Samsung Sdi Co Ltd 0.38
Taiwan 2.98
Taiwan Semiconductor-Sp Adr 1.44
Mediatek Inc 1.16
Airtac International Group 0.21
Globalwafers Co Ltd 0.16
EMEA 0.51
Poland 0.17
Allegro.Eu SA 0.17
United Arab Emirates 0.34
First Abu Dhabi Bank Pjsc 0.34
Latin America 2.95
Argentina 0.89
Mercadolibre Inc 0.53
Globant SA 0.36
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.
18 14846995Glossary - 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.
19 14846995Glossary - 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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