William Blair SICAV - Emerging Markets Leaders Fund Class J (I GBP) - ISIN: LU1023416511
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William Blair SICAV – Emerging Markets Leaders Fund
Class J (I GBP)
Portfolio Review
March 2020
Todd M. McClone, CFA, Partner
Jack Murphy, CFA, Partner
ISIN: LU1023416511 Portfolio Managers
FOR PROFESSIONAL INVESTORS ONLYSummary & Outlook March 2020
stimulus measures pledged by the government as a way to
Market Review offset the effects of COVID-19 in an already slowing economy.
The daily new virus cases in China significantly declined
Global equities plunged and volatility spiked in the first towards the end of the quarter and economic activity
quarter amid heightened anxieties surrounding the rapid modestly improved.
spread of the novel coronavirus (COVID-19) and its impact on
the global economy. The MSCI ACWI IMI ended the quarter From a global sector perspective, energy sharply declined
down 22.44% in USD terms. The selloff began at the end of (MSCI ACWI IMI Energy -45.31%) as the oil price war
February and continued through March as the number of daily between Russia and Saudi Arabia intensified. The Airlines
new cases continued to surge globally. Governments urged industry also plunged -49.59% as mass flight cancellations
individuals to shelter in place and businesses to shut down in started to mount. Conversely, more stable and defensive
the hopes of curtailing the virus, while also promising massive sectors such as Healthcare (-12.05%) and Consumer Staples
fiscal stimulus. Major central banks announced various forms (-14.33%) outperformed on a relative basis.
of quantitative easing in an attempt to maintain financial
system stability. The collapse in oil prices further Performance
compounded investor anxieties following Russia’s decision to
walk away from its informal alliance with Saudi Arabia and Underperformance versus the MSCI Emerging Markets (net)
other OPEC countries. The WTI oil price plummeted 67%— was primarily driven by negative stock selection effects
the worst quarter on record. within the Financials sector and, to a lesser extent, Industrials.
IRB Brasil Resseguros and our India financials exposure, in
The longest bull market in US history came to an abrupt halt particular, Indusind Bank, dragged down Financials results.
with US equities falling 21.06%, the worst quarterly loss since IRB Brasil Resseguros has an 80 year history and a dominant
2008. The Federal Reserve issued two emergency rate cuts position in Brazilian reinsurance. Its underwriting expertise
and began aggressively purchasing Treasuries as a means to with superior data and underwriting team, coupled with its
prevent a liquidity crisis. The government’s fiscal response of technology systems and lean operating structure are key
approximately $2 trillion dollars included checks to competitive advantages. The stock fell amid investor concerns
supplement individual wages, bailouts for major airlines, and over a short seller report and management’s subsequent false
aid for small businesses. assertion of Berkshire Hathaway’s stock ownership, which led
to the dismissal of the company’s CEO and CFO. While
Emerging markets equities broadly declined (-24.40% as investor confidence has been dented in the near term, our
measured by the MSCI Emerging Markets IMI) for the quarter engagement with the company, the quality of its board and
amid soured investor sentiment towards riskier assets, newly appointed management as well as solid business
plunging commodity prices, and a strengthening US dollar. fundamentals and the stock’s attractive valuation support our
Latin America suffered the most (-46.30%), driven by continued investment. Following the Reserve Bank of India’s
weakness in Brazil and Colombia (-50.82% and -49.77% in US decision to place Yes Bank under temporary moratorium,
dollar terms). In contrast, China’s performance relative to Indian financials came under pressure amid increased stress
global markets was resilient (-10.31%), supported by sizable in the financial system. Indusind Bank’s stock performance
was hit by investor concerns over deposit flight from small
2Summary & Outlook March 2020
private banks, increased funding costs and deteriorating asset Services and Information Technology exposures during the
quality amid economic disruption. We believe market period.
concerns are overblown and the bank’s financial standing and
depressed valuation provide a favorable risk/reward profile. Within Communication Services, we purchased Naver, the
Industrials relative results were hampered by COVID-19 leading South Korean search portal with 72% market share.
concerns impacting travel-related holdings—Airports of The investment thesis is underpinned by the company’s
Thailand and Grupo Aeroportuario del Pacifico. sustained high returns in its core domestic business enabled
by its unique position in a fragmented, e-commerce landscape
Partially offsetting these effects were an overweight allocation and ecosystem effect coupled with steps taken to rationalize
and above average stock selection within the Communication relatively unsuccessful investments outside of Korea.
Services sector coupled with the underweight allocation to the
resources sectors. Within Communication Services, NetEase Within Information Technology, MediaTek, Globant and Totvs
and Tencent Holdings helped relative returns. NetEase were purchased during the quarter. Mediatek is the Taiwan-
continues to execute well as a leading developer/operator of based fabless semiconductor company specializing in wireless
self-developed PC and mobile games to internet users in communications and digital multimedia solutions. We believe
China. Operating performance remains solid amid increased the company’s improved competitive position and cost
online customer engagement in gaming and rapid growth in structure, coupled with its more diversified growth drivers
its online education business. Tencent’s market dominance of and the improving semiconductor backdrop should continue
the online Chinese eco-system drives its ability to monetize to drive higher returns and earnings growth. Globant is the
engagement across its platforms, which results ultimately in a Argentine software solutions company for clients throughout
sustained 20%+ growth rate despite a large revenue base. The North America and Europe with a focus on emerging
gaming business was boosted by new content launches and technologies in the fastest-growing segment in IT services.
higher monetization while its cloud business continues to Totvs is the leading ERP (Enterprise Resource Planning)
have multiple growth drivers and has experienced higher software provider in Brazil with 50% market share. Its
platform engagement more recently. leadership is reinforced by the company’s unique ‘franchise’
distribution model (focused on SMBs), enabling nationwide
Positioning reach and cost-effective access to less populated areas. We
believe solid corporate performance will continue to be
During the period, Financials exposure was reduced through driven by a more disciplined focus on the core software
the liquidations of Grupo Financiero Banorte, the leading business, market share gains and increased penetration.
Mexican bank, and Firstrand, the high quality South African
financial services company. While both companies have From a geographic perspective, notable adjustments were
executed well in difficult backdrops, we believe the growth increases to China and Taiwan, offset by decreases to India.
outlook has deteriorated. In addition, Energy exposure
decreased with the sale of Chinese oil company CNOOC as we Market Outlook
believe the company’s shift in strategy towards volume and This commentary has been adapted from our April 2 client
capex growth results in a deteriorated risk/reward profile. webinar COVID-19 Implications: Navigating the Path Forward,
These reductions helped fund an increase in Communication which is available on-demand at this link:
3Summary & Outlook March 2020
https://event.on24.com/wcc/r/2247608/F693F2AD8583ED02BA67F US GDP vary widely, and include the potential for the largest
9ECDE5E9386 sequential decline in the history of recorded data.
We continue to analyze the global pandemic crisis in multiple The duration and the durability of lockdowns are key to
contexts including the nature of the virus and the status of our gaging the subsequent reopening of the economy, and by
collective health risk, the societal and economic impact, and in extension, the advent of the recovery. Our base case today
turn, the effects on markets and our portfolios. assumes that lockdowns remain in place at least through the
end of April. However, if coronavirus testing that is now being
As the virus has spread from China to Europe to the US and rolled out on a massive scale proves to be insufficient such
over 150 countries, we have experienced market volatility that lockdowns need to be extended, this will delay the
and a downturn unlike any since the Global Financial Crisis, recovery and introduce a more bearish element to it.
and by some measures since the 1930s. Governments around
the world have begun to wrap their arms around the Fiscal stimulus measures announced to date have been
magnitude of the contagion and have acted meaningfully to significant. But the challenges of implementing the stimulus—
suppress the infection curve by effectively shutting down in terms of channeling it to the right individuals and
massive swaths of the global economy. This has coincided businesses in a timely manner—will result in bankruptcies
with unprecedented levels of monetary and fiscal stimulus and massively higher unemployment, which is already
measures to ease the effects on displaced workers and the evident. The speed and vigor of the recovery will largely
impact to businesses. The stimulus response has been depend on how quickly the newly unemployed can be
particularly strong in developed markets, while emerging reabsorbed into the economy and how quickly businesses can
market governments overall may be more limited in their reopen.
ability to stimulate.
These are key elements to dimensioning the bear, bull and
From an economic impact perspective, we are expecting a base case scenarios, and they are incredibly fluid. We are
very deep recession to be met with continued strong policy beginning to understand the scale of the unemployment
responses, supporting a steep sequential recovery later this problem, but we do not yet have any clarity on the extent of
year. While the recovery will likely be strong, we acknowledge potential bankruptcies. Beyond unemployment and
it could take 8 to 10 quarters before growth normalizes to bankruptcies, we continue to closely track high-frequency
pre-crisis levels. survey indicators—including purchasing managers’ indices
and their subcomponents—to help assess the magnitude of
For China, the full brunt of the economic decline is likely to be corporate order book deterioration, supply chain challenges
borne in the first quarter of 2020, while Europe and US and pricing pressures. All of these questions are elucidated on
economic activity levels are likely to trough between March a monthly basis through the survey data.
and May. This means that GDP contraction (i.e. economic
recession) is likely to be spread over the first and second We have remained steadfastly focused on seeking
quarters of 2020. Projections for the drop in second quarter opportunities to add to our best ideas in this tumultuous
environment, looking beyond transitory virus-related
4Summary & Outlook March 2020
business effects. In particular, we are interested in quality From a geographic perspective, we came into 2020 expecting
growth companies that have been out of our reach purely that improving relative growth rates of non-US economies
from a valuation perspective, as well as high-quality cyclicals would help non-US developed and emerging markets equities
that have witnessed significant declines but have the begin to narrow the performance gap versus the US. The
wherewithal to navigate the crisis. pandemic-induced recession has abruptly altered this outlook,
with the US economy, bolstered by its technology sector
In order to mitigate risk, we are paying special attention to leadership, now likely better positioned to endure the
two specific concerns. The first are portfolio companies that significant near-term growth headwinds.
may have previously benefitted from the steady, albeit low
growth outlook. These are now more at risk of being exposed Looking beyond the US, China’s performance has been
for being less in control of their own destiny than we impressively resilient. This has been supported initially by
previously thought. The second area, and its related area of sizable government stimulus measures to offset the
research, are the companies in our portfolios with more detrimental effects of the virus, and more recently by the
fragile balance sheets and increased solvency risk resulting downward trend in daily new virus cases that has led to a
from pandemic-related cash flow pressures. We likely have gradual reopening of the economy.
few of these risks, but in those few instances the outcomes
could be severe. Interestingly, many of the aforementioned structural growth
themes are flourishing in China as the government prioritizes
It has been encouraging for us to see the market differentiate investment in higher value added, technology-enabled areas.
those companies that are tied to more structurally advantaged Our research process continues to uncover attractive Chinese
themes amid the downturn. Technology-enabled growth areas companies that not only have attractive growth rates, but high
like distributed computing, 5G telecom, ecommerce, online quality attributes in terms of financial performance and
education and telemedicine have outperformed more innovation, which we think are underappreciated by many
traditional, “old economy” industries, regardless of valuation investors.
differentials favoring the latter. Our conviction in portfolio
companies tied to these growth areas is actually increasing in More broadly across Asia, we are attracted to the relative
this environment, as their competitive positions are likely to stability of markets like South Korea and Taiwan, where new
strengthen amid the downturn. virus cases have already peaked and economies are more
resilient, supported by relatively strong fiscal positions, stable
At the same time, we are being diligent in reassessing currencies and prominent technology sectors that have
cyclically-oriented companies within our quality growth become increasingly integral to global supply chains.
universe that have been heavily penalized in recent weeks.
These include automotive and travel-related companies, and In recent weeks we have been diligent in speaking with as
select financials where share prices may be discounting overly many portfolio companies as we can: in March alone we had
bearish revenue and profit scenarios. over 125 corporate touchpoints. We wish we were getting
more reassurances on demand and client activity from
management teams, but we recognize that their visibility
5Summary & Outlook March 2020
remains extremely limited given uncertainties surrounding It’s actually been very rich and rewarding work in these trying
the pandemic. times. In fact, I would describe our work culture as not one of
panic, but one of tremendous productivity.
What we are learning from them, however, is their
preparedness and their ability to navigate through the crisis Ken McAtamney, Partner
in terms of protecting client relationships, effective resource Head of Global Equity Team
management, and execution around their strategy. As in all
crises, the best will not only survive, but will actually emerge
stronger, with improved competitive positioning and more
enduring growth prospects. This is where we are continuing
to focus.
Over the last several weeks we have received many inquiries
about the state of our firm, our investment team, and our
investment process. I must say that I’ve been inspired, but not
surprised, by the energy and the commitment of our
investment professionals and all team members in this very
challenging time.
The collaborative, engaged nature of our investment process
has prepared us remarkably well for this more decentralized,
virtual form of work and connectedness. The content of our
research has never been richer. And the engagement and the
commitment of the team have never been stronger. We are
collaborating on the development of new tools and
frameworks to help us collectively assess the impact of the
virus on the economy as well as industry and company
growth rates. This exercise is not just a triage for the current
crisis, but an opportunity for deeper, reflective work on its
longer-term growth implications. This has provided cohesion
and consistency to our process.
6Market Performance March 2020
QTD 2019 2018 2017
AC World (DM+EM) -22.4 26.4 -10.1 23.9
Developed Markets (DM) -22.2 27.5 -9.4 22.4
Japan -17.4 19.6 -13.5 25.3
Europe ex UK -23.3 25.0 -15.7 28.0
UK -30.0 23.2 -15.0 23.7
USA -21.1 30.4 -5.7 20.6
Emerging Markets (EM) -24.4 17.6 -15.0 36.8
Asia -18.9 17.8 -15.9 41.8
Regions
China -10.3 22.7 -18.7 50.7
India -31.8 5.3 -11.2 43.7
Korea -22.5 9.6 -20.6 46.0
Taiwan -19.6 35.2 -10.1 30.2
EMEA -34.1 15.8 -16.8 24.1
Russia -36.2 50.1 -1.4 5.1
South Africa -41.6 11.2 -24.7 34.0
Latin America -46.3 19.4 -7.2 24.8
Brazil -50.8 29.3 -1.1 26.4
Mexico -36.1 12.9 -15.1 15.0
Frontier Markets (FM) -26.1 13.8 -16.6 29.9
Large Cap -22.4 19.3 -14.9 37.7
Size
Small Cap -31.4 11.5 -18.6 33.8
Communication Svcs -10.3 10.9 -15.3 16.8
Discretionary -20.3 31.6 -29.3 38.6
Staples -20.3 9.6 -14.2 25.0
Energy -39.9 19.4 3.6 21.0
Financials -31.4 12.0 -9.2 32.7
Sectors
Healthcare -9.8 2.9 -19.8 35.4
Industrials -30.1 6.3 -15.1 25.7
IT -18.5 40.8 -19.6 59.9
Materials -30.8 7.7 -13.4 33.5
Real Estate -28.8 22.2 -16.0 42.2
Utilities -27.4 9.7 -5.8 17.5
Quality 5.6 13.7 16.6 2.4
Valuation -14.9 4.5 15.0 0.1
Etrend 8.9 12.5 8.8 14.4
Style
Momentum 10.7 16.1 -0.1 18.3
Growth 13.5 6.1 -7.4 9.5
Composite -0.6 16.8 19.9 7.9
Source: FactSet
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 EM IMI Index. Size values are based on the MSCI EM IMI 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. All index
returns are net of dividends. A direct investment in an unmanaged index is not possible. . Please refer to the ‘Important Disclosures’ section at the end of this document for
further information on investment risks and returns.
7Portfolio Performance March 2020
Since
Periods ended 31/03/2020 Quarter 1 Year 3 Year 5 Year Inception*
William Blair SICAV - Emerging Markets Leaders -19.56% -10.34% 1.06% 3.29% 6.79%
(Class JI GBP)
MSCI Emerging Markets (net) (GBP) -18.37% -13.50% -1.34% 3.29% 5.75%
*Inception 05/02/2014
The MSCI Emerging Markets Index (net) is a free float-adjusted market capitalization index that is designed to measure equity market performance in the
global emerging markets. This series approximates the minimum possible dividend reinvestment.
Periods greater than one year are annualized. All charges and fees have been included within the performance figures. For the most current month-end
performance information, please visit the SICAV website at sicav.williamblair.com. Please refer to the ‘Important Disclosures’ section at the end of this
document for further information on investment risks and returns.
8Performance Analysis (by sector) March 2020
The table below shows the calculated sector attribution of the William Blair SICAV - Emerging Markets Leaders Fund portfolio vs. its
benchmark.
William Blair SICAV - Emerging Markets Leaders Fund vs. MSCI Emerging Markets (net)
01/01/2020 to 31/03/2020
William Blair SICAV - Emerging
MSCI Emerging Markets (net) Attribution Analysis
Markets Leaders Fund
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 15.1% -6.8% -1.0% 11.8% -9.6% -1.1% 0.4% 0.3% 0.8%
Consumer Discretionary 19.6% -19.7% -3.8% 14.7% -18.0% -2.6% 0.3% -0.3% 0.0%
Consumer Staples 13.0% -20.4% -2.7% 6.4% -19.8% -1.2% 0.3% -0.1% 0.2%
Energy 4.1% -38.0% -1.7% 6.7% -39.9% -3.0% 0.5% 0.1% 0.6%
Financials 22.6% -40.6% -9.6% 23.2% -31.1% -7.5% 0.1% -2.3% -2.2%
Health Care 3.2% -4.6% -0.1% 3.1% -8.5% -0.2% 0.0% 0.1% 0.1%
Industrials 6.2% -39.6% -2.6% 5.2% -28.0% -1.5% 0.0% -0.8% -0.8%
Information Technology 10.7% -17.6% -1.9% 16.4% -17.8% -2.8% -0.3% 0.0% -0.3%
Materials 2.4% -31.5% -0.8% 7.1% -30.7% -2.3% 0.3% 0.0% 0.3%
Real Estate 0.0% 0.0% 0.0% 2.9% -26.7% -0.8% 0.1% 0.0% 0.1%
Utilities 0.0% 0.0% 0.0% 2.6% -26.0% -0.7% 0.1% 0.0% 0.1%
Cash 3.3% - -0.1% 0.0% 0.0% 0.0% 0.6% 0.0% 0.6%
Total 100.0% -24.1% -24.1% 100.0% -23.6% -23.6% 2.5% -3.0% -0.5%
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.
9Performance Analysis (by region) March 2020
The table below shows the calculated regional attribution of the William Blair SICAV - Emerging Markets Leaders Fund portfolio vs. its
benchmark.
William Blair SICAV - Emerging Markets Leaders Fund vs. MSCI Emerging Markets (net)
01/01/2020 to 31/03/2020
William Blair SICAV - Emerging
MSCI Emerging Markets (net) Attribution Analysis
Markets Leaders Fund
Issue
Average Total Contrib to Average Total Contrib to Allocation Selection Total
Region Weight Return Return Weight Return Return Effect Effect Effect
EM Asia 77.2% -20.5% -15.7% 75.3% -18.1% -13.3% 0.1% -1.9% -1.8%
EMEA 6.9% -38.0% -2.8% 14.2% -33.9% -5.1% 0.8% -0.3% 0.5%
Latin America 12.7% -42.2% -5.5% 10.4% -45.6% -5.2% -0.4% 0.5% 0.1%
Cash 3.3% - -0.1% 0.0% 0.0% 0.0% 0.6% 0.0% 0.6%
Total 100.0% -24.1% -24.1% 100.0% -23.6% -23.6% 1.2% -1.7% -0.5%
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.
10Top Contributors/Detractors March 2020
The tables below show the top contributors and detractors for the William Blair SICAV - Emerging Markets Leaders Fund portfolio vs. its
benchmark.
Top Five Contributors (%) for the Period: 01/01/2020 to 31/03/2020
Issuer Sector Country Contribution To
Relative Return
NetEase Inc Communication Services China 0.57
Tencent Holdings Ltd Communication Services China 0.51
Zhangzhou Pientzehuang Pharmac Health Care China 0.43
TAL Education Group Consumer Discretionary China 0.34
Jiangsu Hengrui Medicine Co Lt Health Care China 0.22
Top Five Detractors (%) for the Period: 01/01/2020 to 31/03/2020
Issuer Sector Country Contribution To
Relative Return
IRB Brasil Resseguros S/A Financials Brazil -1.23
IndusInd Bank Ltd Financials India -0.66
Capitec Bank Holdings Ltd Financials South Africa -0.53
Grupo Aeroportuario del Pacifi Industrials Mexico -0.43
Motherson Sumi Systems Ltd Consumer Discretionary India -0.41
Index: MSCI Emerging Markets (net)
Past performance is not indicative of future returns. Gross investment performance assumes reinvestment of dividends and capital gains, is gross of investment
management fees and net of transaction costs. Attribution is based on estimated returns of all equities held during a measurement period, including purchases and
sales. 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. Sectors are based on Global Industry Classification (GICS) Sectors. International investing involves special risk considerations, including currency
fluctuations, lower liquidity, economic and political risk. 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.
11Portfolio Positioning March 2020
The chart below shows the region and sector positioning of the William Blair SICAV - Emerging Markets Leaders Fund vs. its benchmark.
Regional Exposure Sectoral Exposure
77.9 Communication Services 17.5 3.5
EM Asia Total 1.6 13.1
79.0
39.8 Consumer Discretionary 20.1 0.1
China 2.8 15.4
40.6
Consumer Staples 14.2 1.6
14.4 6.6
India -4.3
7.7
Energy 2.9 -1.9
4.5 5.9
South Korea 1.9
11.8 17.1
Financials -7.0
12.1 21.6
Taiwan 2.2
12.3 3.5
Health Care 0.8
6.5 3.6
EMEA Total -1.3
12.9 Industrials 5.4 -0.9
4.9
2.1
Russia 0.5 13.1
3.3 Information Technology 2.7
16.9
4.3
South Africa -1.9 2.4 0.0
3.6 Materials
6.7
11.9 --
Latin America Total -1.2 Real Estate 0.0
8.1 2.9
6.8 -- 0.0
Brazil -1.4 Utilities
4.9 2.5
2.3 Other -- 0.0
Mexico -1.0 --
1.9
3.8 Cash & Equivalents 3.8 0.9
Cash & Equivalents 0.9 --
--
William Blair Sicav - Emerging Leaders Growth Fund William Blair Sicav - Emerging Leaders Growth Fund
Portfolio Diff Previous QTR
MSCI Emerging Markets (net) Portfolio Diff Previous QTR MSCI Emerging Markets (net)
Source: William Blair.
As of Date: 31/03/2020
Cash & Equivalents includes: cash and dividend accruals.
12Top Holdings by Market Cap March 2020
The table below shows the William Blair SICAV - Emerging Markets Leaders Fund portfolio’s largest holdings as of 31/03/2020 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(>$15b) 49.6% 44.8%
Alibaba Group Holding Ltd China Consumer Discretionary 7.7% 7.1%
Taiwan Semiconductor Manufactu Taiwan Information Technology 7.6% 4.7%
Tencent Holdings Ltd China Communication Services 7.4% 5.9%
Ping An Insurance Group Co of China Financials 4.5% 1.3%
NetEase Inc China Communication Services 3.5% 0.5%
Mid Cap($4-15b) 33.3% 28.9%
Huazhu Group Ltd China Consumer Discretionary 2.6% 0.1%
Uni-President Enterprises Corp Taiwan Consumer Staples 2.5% 0.2%
LG Household & Health Care Ltd South Korea Consumer Staples 2.5% 0.2%
Yandex NV Russia Communication Services 2.2% 0.0%
Shenzhou International Group H China Consumer Discretionary 2.1% 0.2%
Small Cap(Top Portfolio Changes March 2020
Top Portfolio Changes During the Period: 01/01/2020 to 31/03/2020
Security Name Country Sector
Mediatek Inc Taiwan Information Technology
Purchases
New Naver Corp South Korea Communication Services
Mercadolibre Inc Argentina Consumer Discretionary
Globant Sa Argentina Information Technology
Totvs Sa Brazil Information Technology
Cnooc Ltd China Energy
Liquidations
Haier Electronics Group Co China Consumer Discretionary
Firstrand Ltd South Africa Financials
Grupo Financiero Banorte-O Mexico Financials
Petronet Lng Ltd India Energy
Individual securities listed in this report are for informational purposes only. Holdings are subject to change at any time. This information does not
constitute, and should not be construed as, investment advice or recommendations with respect to the securities listed. Sectors are based on Global Industry
Classification (GICS) Sectors.
14Portfolio Characteristics March 2020
William Blair SICAV - Emerging
Markets Leaders Fund MSCI Emerging Markets (net) Difference
Quality
WB Quality Model (Percentile) 20 31
Return on Equity (%) 19.9 16.0 25%
Cash Flow ROIC (%) 20.1 16.8 20%
Debt/Equity (%) 70.1 80.8 -13%
Growth
WB Growth Model (Percentile) 34 42
Long-Term Growth (%) 17.4 13.7 27%
5-Year Historic EPS Growth (%) 17.1 14.5 18%
Reinvestment Rate (%) 12.8 10.9 17%
Earnings Trend
WB Earnings Trend Model (Percentile) 51 49
EPS Revision Breadth (%) -25.3 -21.4 -3.8
Valuation
WB Valuation Model (Percentile) 76 55
P/E (next 12 months) 17.6 10.9 61%
Dividend Yield (%) 1.9 3.2 -41%
Other
WB Composite Model (Percentile) 49 40
Float Adjusted Weighted Average Market Cap ($m) 69,160 63,679 9%
Number of Holdings 57 1,404
Active Share (%) 73 --
The index is comparable to the strategy in terms of investment approach but contains significantly more securities. Calculated in FactSet, with the exception of market cap
and active share, which are calculated in Eagle.
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.
15Holdings March 2020
Portfolio Portfolio Portfolio
Weight Weight Weight
EM Asia 77.93 EM Asia (continued) Latin America (continued)
China 39.83 Indonesia 3.92 Argentina (continued)
Alibaba Group Holding-Sp Adr 7.38 Telekomunikasi Indonesia Per 1.87 Globant SA 0.21
Tencent Holdings Ltd 7.16 Bank Rakyat Indonesia Perser 1.24 Brazil 6.78
Ping An Insurance Group Co-H 4.32 Unilever Indonesia Tbk Pt 0.81 B3 Sa-Brasil Bolsa Balcao 1.85
Netease Inc-Adr 3.41 Papua New Guinea 0.32 Raia Drogasil SA 1.23
Huazhu Group Ltd-Adr 2.48 Oil Search Ltd 0.32 Rumo SA 1.08
Tal Education Group- Adr 2.14 South Korea 4.53 Odontoprev S.A. 1.01
Shenzhou International Group 2.03 Lg Household & Health Care 2.37 Weg SA 0.83
China International Travel-A 1.88 Naver Corp 1.08 Irb Brasil Resseguros SA 0.58
Kweichow Moutai Co Ltd-A 1.82 Douzone Bizon Co Ltd 1.08 Totvs SA 0.20
Tencent Music Entertainm-Adr 1.82 Taiwan 12.11 Mexico 2.32
Midea Group Co Ltd-A 1.54 Taiwan Semiconductor-Sp Adr 7.35 Walmart De Mexico Sab De Cv 1.42
Zhangzhou Pientzehuang Pha-A 1.50 Uni-President Enterprises Co 2.44 Grupo Aeroport Del Pacific-B 0.90
Travelsky Technology Ltd-H 1.38 E.Sun Financial Holding Co 1.28 Peru 1.57
Jiangsu Hengrui Medicine C-A 0.96 Mediatek Inc 1.04 Credicorp Ltd 1.57
India 14.39 Thailand 2.84 Cash 3.75
Reliance Industries Ltd 2.63 Airports Of Thailand Pcl-For 1.53 Total 100.00
Hdfc Bank Limited 2.08 Cp All Pcl-Foreign 1.31
Infosys Ltd 1.81 EMEA 6.46
Asian Paints Ltd 1.44 Russia 2.14
Housing Development Finance 1.24 Yandex Nv-A 2.14
Upl Ltd 0.96 South Africa 4.32
Britannia Industries Ltd 0.79 Clicks Group Ltd 1.25
Maruti Suzuki India Ltd 0.74 Capitec Bank Holdings Ltd 1.22
Hdfc Life Insurance Co Ltd 0.74 Bidvest Group Ltd 1.07
Bajaj Finance Ltd 0.65 Bid Corp Ltd 0.78
Motherson Sumi Systems Ltd 0.61 Latin America 11.87
Indusind Bank Ltd 0.35 Argentina 1.19
Mrf Ltd 0.35 Mercadolibre Inc 0.98
As of Date: 31/03/2020
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. Please refer to the ‘Important Disclosures’ section at the end of this document for
further information on investment risks and returns.
16Important Disclosures March 2020
GENERAL INFORMATION
Recipients of this document should be aware of the risks detailed in this paragraph. Please be advised that any return estimates or indications of
past performance on this document are for information purposes only. Both past performance and yield may not be a reliable guide to future
performance. The value of investments and income from them may fall as well as rise and investors may not get back the full amount invested. The
value of shares and any income from them can increase or decrease. An investor may not get back the amount originally invested. Where investment
is made in currencies other than the investor's base currency, the value of those investments, and any income from them, will be affected by
movements in exchange rates. This effect could be unfavourable as well as favourable. Levels and bases for taxation may change.
Specific securities identified and described to do not represent all of the securities purchased or sold and you should not assume that investments in
the securities identified and discussed were or will be profitable. Holdings are subject to change at any time. References to specific securities and
their issuers are for illustrative purposes only and are not intended and should not be interpreted as investment advice, offer or a recommendation
to buy or sell any particular security or product.
Any discussion of particular topics is not meant to be complete, accurate, comprehensive or up-to-date and may be subject to change. Factual
information has been taken from sources we believe to be reliable, but its accuracy, completeness or interpretation cannot be guaranteed.
Information and opinions expressed are those of the author and may not reflect the opinions of other investment teams within William Blair.
Information is current as of the date appearing in this material only and subject to change without notice.
Further specific risks may arise in relation to specific investments and you should review the risk factors very carefully before investing. Intended
risk profile of the Fund may change overtime. The Fund is designed for long-term investors. The most current month-end performance information
is available on sicav.williamblair.com.
FUND INFORMATION
The SICAV has appointed FUNDROCK MANAGEMENT COMPANY S.A., a "société anonyme" incorporated under the laws of the Grand Duchy of
Luxembourg and having its registered office at 33, rue de Gasperich, L-5826 Hesperange as its management company (the "Management
Company").The Management Company is authorised and regulated by the Luxembourg Supervisory Authority of the Financial Sector (the "CSSF") as
the management company of UCITS (defined below) under the EU directive 2009/65/EC, as amended.
17Important Disclosures March 2020
The Management Company has been appointed as the management company of WILLIAM BLAIR SICAV, a "société d'investissement á capital
variable", incorporated under the laws of the Grand Duchy of Luxembourg having its registered office at 31, Z.A.I. Bourmicht, Bertrange, registered in
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The Management Company has appointed WILLIAM BLAIR INVESTMENT MANAGEMENT, LLC, having its registered office at 150 North Riverside
Plaza Chicago, IL 60606-1598, USA ("William Blair Group") as the investment manager for the Fund (the "Investment Manager").
The Articles of Incorporation, the Prospectus, the Key Investor Information Documents (KIID), the Annual and Half-yearly Reports of the Fund and
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SICAV, 31, Z.A. Bourmicht, L-8070 Bertrange, Grand Duchy of Luxembourg) or from the Swiss representative, First Independent Fund Services
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