William Blair SICAV - Emerging Markets Small Cap Growth Class Z (USD) - ISIN: LU0874276768 - William ...
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William Blair SICAV - Emerging Markets Small Cap Growth
Class Z (USD)
Portfolio Review
June 2021
Todd M. McClone, CFA, Partner
Casey K. Preyss, CFA, Partner
Portfolio Managers
ISIN: LU0874276768
FOR PROFESSIONAL INVESTORS ONLYSummary & Outlook June 2021
and business activity. Economic data was also supportive,
specifically the Eurozone manufacturing purchasing
Market Review
manager’s index (PMI) which rose to a record high level
Global equities continued to advance in the second quarter (63.4) in June.
(the MSCI ACWI IMI gained +7.18% in the second quarter
Strength within Latin America (+15.56% for the quarter
and 12.68% year-to-date in USD terms) amid further
and +9.64% year-to-date) was primarily driven by Brazil
success of vaccination rollouts and a healthy rebound in
(+23.60% for the quarter and +11.89% year-to-date)
economic activity, especially in developed markets. The
bolstered by stronger commodity prices and currency
sharp style rotation in the first quarter which favored value
tailwinds. China underperformed on a relative basis
areas subsided in the second quarter with growth stocks
(+2.35% for the quarter and +2.36% year-to-date) amid
outperforming. From a global sector perspective,
concerns over tightening liquidity and increased regulatory
Information Technology outperformed (+10.22% for the
oversight on large cap technology companies.
quarter and +12.39% year-to-date) while Utilities
significantly underperformed (-0.09% for the quarter and Performance
+0.86% year-to-date). Energy also continued to rally
(+10.08% for the quarter and +30.51% year-to-date) as Second quarter outperformance versus the MSCI Emerging
rising demand drove stronger crude oil prices. Markets Small Cap (net) was primarily driven by positive
stock selection across most sectors. Stock selection within
US equities advanced (+8.36% for the quarter and +15.05% the Consumer Discretionary and Information Technology
year-to-date) as investors welcomed news of additional sectors was particularly strong. Within Consumer
federal spending to revive the economy. In addition to the Discretionary, Momo.com Inc and F&F Holdings Co Ltd.
$1.9 trillion Covid relief plan and $2.3 trillion infrastructure boosted relative performance. Momo.com, the leader in e-
plan introduced in the first quarter, the Biden commerce in Taiwan, rallied as the increased COVID-19
administration also announced a $1.8 trillion American outbreak in Taiwan drove higher online sales and helped
Families Plan emphasizing strong support for national boost broader adoption. F&F is leading manufacturer of
childcare to ensure an equitable recovery from the apparel and accessories under licensed brands such as
pandemic, especially for female workers and mothers. Discovery and MLB, primarily in Korea and China. The
Significant federal spending drove concerns over rising company adopted a new holding structure and the new F&F
inflation. In May, headline inflation rose to 5.0% year on subsidiary rallied following its listing amid rapid growth in
year, above expectations. China, propelled by the MLB brand coupled with the
European equities kept pace with the benchmark (+7.26% company’s strong distribution capabilities. Totvs, the
for the quarter and +11.81% year-to-date) as several Brazilian ERP software company, bolstered results within
European countries gradually relaxed restrictions on travel the Information Technology sector. The share priceSummary & Outlook June 2021
strengthened as the company reported all-time high Ozon is a Russian ecommerce platform and a recent IPO.
revenues on the backdrop of accelerated demand and Russian e-commerce is at a very early stage and therefore
continued to execute well on its growth strategy. very underpenetrated (currently 9% of retail sales). The
new management team is executing on a compelling
Partially offsetting these effects was negative stock
strategy aiming to take a leading position in the market,
selection within the Industrials and Financials sectors.
leveraging its brand, data, network effects, and cost
Within Industrials, the lack of exposure to shipping
advantage of a multi-sided marketplace. Returns are
companies hampered relative results as marine
currently negative as Ozon is investing heavily in its
transportation companies rallied 136% during the quarter
platform to drive growth; however, we expect operating
amid the faster-than-expected global recovery and stronger
leverage and low incremental costs to drive CFROIC to the
freight rates. Zhejiang Dingli Machinery Co Ltd also
high teens in the next ten years.
detracted to relative performance as the stock fell on
disappointing operating performance with increasing Materials exposure was also increased to an overweight
competition and an unfavorable product mix hurting position during the period. Skshu Paint, a leading domestic
margins. We exited the position as a result. AU Small supplier of coatings in China, and Vinati Organics, the India-
Finance Bank Ltd is an Indian bank specializing in small based manufacturer of specialty chemicals and organic
ticket retail loans on income generating products targeting ingredients, were purchased during the period.
the unserved and underserved customer segments within
Skshu Paint has a strong brand image underpinned by the
the Financials sector. The stock price weakened during the
quality of its products which are environmentally friendly
quarter amid soaring COVID-19 cases in India driving
and comparable to high quality foreign brands. We believe
weaker investor sentiment and asset quality.
the company is well positioned to benefit from increased
Positioning consumer demand for higher quality, increasing safety and
environmental standards, and import substitution while
During the second quarter, Consumer Discretionary
higher raw material prices, financing conditions, and other
exposure was increased through the purchases of Makalot
market dynamics should drive market consolidation and
Industrial Co Ltd and Ozon Holdings PLC.
share gains.
Makalot is one of the leading garment makers in Taiwan
Vinati Organics is among others the largest manufacturer in
and is highly leveraged to the US consumer which is
the world for IBB, the primary raw material for Ibuprofen
experiencing a sharp recovery. We believe the company
production, and for ATBS, a key component that make
will deliver mid-teens sales and earnings growth over the
acrylic fibers receptible to dye. We believe revenue will
next several years, driven by new product introductions,
grow at a ~36% CAGR over the next three years driven
mix improvement, new client wins, and share gains at
primarily by a strong increase in ATBS demand and steady
existing clients.Summary & Outlook June 2021
IBB sales as the company takes advantage of the large We believe that corporate earnings growth, which has been
import substitution opportunity, and new product impressive thus far in 2021, remains underestimated. In
launches. fact, projected bottom-up corporate profit growth lags top-
down GDP estimates by a wider margin than we saw
These increases were offset primarily by reductions to coming out of the global financial crisis of 2008 (GFC).
Industrials and Information Technology. Within Thus, we are confident profit growth will continue to
Industrials, Escorts Ltd, Zhejiang Dingli Machinery and surprise to the upside.
Randon Implementos were sold during the period. Escorts
was eliminated in April amid its weakening growth outlook. As is the case in almost every economic expansion period,
The Zhejiang Dingli sell was driven by the company’s earnings growth has been the key market driver. We are
deteriorated competitive positioning and increased margin now clearly in expansion mode, with the corporate profit
pressure, while the Randon liquidation was predicated on picture and market leadership following the script.
slower revenue growth outlook and higher raw materials
prices weighing on margins. During the second quarter, we saw earnings revisions and
momentum lead market performance, while valuation
Silergy Corp within the Information Technology sector was flipped from dominating in 1Q (typical of recovery periods)
liquidated during the period due to market cap to not much of a factor. Quality and Growth re-asserted
considerations. From a geographic perspective, notable themselves positively. All of these characteristics are very
adjustments were an increase to Russia, offset by decreases typical of performance during an economic expansion and
to Taiwan and Thailand. we believe they are likely to continue.
Outlook Inflation concerns have been a natural topic of debate all
year. We continue to foresee reflation back to long-term,
The market is experiencing a tug of war between the
i.e., manageable, levels. In this unique cycle, we are
impressive acceleration of economic growth due to global
experiencing price increases driven by the re-opening of
re-openings, and fears of a resurgence of COVID virus case
supply not keeping up with demand fast enough. While in
counts. We believe economic growth will win out. While
some cases we are already seeing a few industrial
concerning, the positive view is that the vaccines are
commodity prices reverting, we expect that it will take
working, and the delta variant is proving not as harmful.
another 3-6 months for the supply catch up to occur across
most industries.
As for recent economic activity, it has been more of the
same, with both consumption and production activity
The global market is up close to 40% over the last twelve
strong – in some cases above 2019 levels. While we expect
months. While market valuations receive a lot of attention,
a sequential peak in GDP growth likely occurred in 2Q, the
perhaps unnoticed is that this market appreciation has
remainder of the year should continue to be quite strong.
been driven entirely by earnings growth. The market has
actually de-rated a bit during this period.Summary & Outlook June 2021
The COVID pandemic has elevated operational efficiencies
More economically sensitive sectors of the market (e.g., of digital business models into a survival imperative for
cyclicals and financials) have re-rated along with a virtually all companies. Digital businesses were able to
resurgence of their growth. In contrast, companies with operate relatively unscathed during the pandemic
stronger structural long-term growth have lagged on a lockdowns, while more traditional, high physical contact
relative basis, and in some cases have seen their stock businesses were forced to shut down. Within industries,
multiples compress. We view this is a classic period of those companies who had proactively employed more data
structural winners “growing into” their multiples. and digitally- enabled business practices pressed their
competitive advantage. We are seeing companies of all
Consistent with our growth outlook we believe most of this sizes accelerate their investment into cloud-based systems,
experience is likely behind us but may occur off and on remote work, digitally driven customer service solutions,
during the balance of the year while the market digests the and the requisite software applications required to make it
economic and profit picture. Ultimately as economic all work.
growth reverts to the long-term mean and the market
begins to discount peak cyclical earnings, the structural Companies have spent decades rationalizing their supply
growers will again have their day. chains with the goal of maximum operational efficiency.
Such extreme efficiency comes with high potential fragility.
Corporate Capital Expenditures And this fragility was fully exposed by COVID-related
lockdowns and associated export restrictions. Companies
Corporate profit margins and cash flows have been are looking to shore up their supply chains, in some
impressive, and we believe we are entering an era where instances by reducing or duplicating some parts of the
more of that cash flow is likely to be directed to capital chain. Some of this was starting to happen in response to
investment and research and development. chilling economic relations between the U.S. and China
prior to the pandemic. COVID has only added more reasons
We see two reasons for rapidly ramping capital spending to accelerate the buildout.
by corporates: 1) digitalization of businesses is now a
survival imperative; and 2) shortening supply chains has Shifts in the geopolitical environment in which corporates
become necessary to improve operational resilience. operate also support investment rather than cash
preservation. Since the early 1980s everything from
We are witnessing it already: After the GFC, it took US taxation to antitrust to regulatory and labor policies was
private sector non-residential investment nearly four years geared to improving corporate profitability. Today, there is
to recover to pre-crisis levels. By contrast, capex spending growing recognition that these policies may have gone too
in Q1 2021 already surpassed the Q4 2019 peak. far. The operating environment is changing on the margin:
Intellectual property and software investment recovered pressure for stronger wage growth, especially at the
by Q4 2020, compared to six quarters post-GFC. bottom of the income distribution is rising.Summary & Outlook June 2021
The G7 agreeing on a minimum corporate tax rate suggests exist in areas as diverse as North American rails, aircraft
that the race to the bottom is over. Antitrust authorities in production, airlines, HVAC manufacturing, and other niche
China, Europe and the US are openly exploring ways to markets.
bring competition standards to industries and businesses
that have been able to behave as monopolies or quasi Long duration growth
monopolies. These changes incentivize corporate
investment, which in turn will likely expand supply and Although industrial company growth rates may be more
enable stronger economic growth without higher inflation. modest compared to the fast-moving technology sector,
We will have more to say on this topic in the coming growth is often more durable and exploitable over long
months and quarters. periods of time. This persistence of growth is what
investors tend to underestimate, and where the market is
Spotlight: Industrials less efficient.
The confluence of the strong economic cycle and what we Industrial processes are often complex and have been
expect will be a step up in capital investment spending optimized over many years. Combined with a high risk of
suggests a portfolio focus on industrials. In fact, many of failure, this results in strong inertia and risk aversion that
our portfolios, especially those that include developed slows adoption of new technologies. In contrast, consumer
markets, have had significant overweight exposure to technology is fast moving as consumers adopt new
industrial industries for the last several years. technologies rapidly in their daily lives. While growth rates
are slower for industrial companies, predictability and
The key attribute for any of our company investments is a durability of growth allows companies to exploit
strong and durable competitive advantage, and industrials opportunities for years if not decades.
have several advantages in this regard, even compared to
the technology and consumer sectors, which may seem Once a company has built an installed base it typically
counter intuitive. provides an attractive aftermarket opportunity that results
from demanding operating conditions, safety, and quality
Many industrial applications are characterized by hard-to- considerations. Jet engines are a classic example where the
develop products that require domain knowledge, scale, installed base often provides decades of lucrative services
and manufacturing expertise. Route-to-market, capital and parts revenue for manufacturers. Strong competitive
allocation, and installed bases are other often powerful and advantages, high switching costs, and customer risk
durable advantages. aversion allow for pricing power in many cases.
High entry barriers and consolidated markets are also The increasing focus on environmental and social
powerful attributes. Industry structure is important as it considerations has strengthened the role of efficiency in the
influences how industrial value creation is distributed and customer value proposition. For many industrial
the risk of value destruction. Favorable market structures companies, energy efficiency and safety have beenSummary & Outlook June 2021
cornerstones of their value proposition from the beginning. Strategic use of financial leverage
These companies enable the reduction of emissions and
waste through new, more efficient products and Long lived assets and strong competitive advantages allows
engineering-driven solutions. For example, Spirax-Sarco for the comfortable use of modest leverage to boost
recently implemented solutions at a Nestle factory that returns. Re-leveraging with debt to maintain a constant
reduced energy use by 45%, emissions by 43%, and water capital structure is often used to enhance cash flows and
use by 48%. returns to equity holders. The strength of business models
and competitive advantages can also provide firepower to
Potential for strong cash generation and value creating flex debt levels higher to seek to capitalize on inorganic
capital allocation opportunities. For example, DSV has used leverage to make
highly accretive acquisitions the past several years.
Industrial companies often generate strong cash flow that
can be used to fund value-creating organic and inorganic Stock specific drivers
growth.
Many industrial companies are cyclical and can be volatile
Domain knowledge and customer intimacy provides stocks. While we are long term investors, we believe that
opportunities to develop innovative new products and the market tends to overreact to the economic cycles
solutions. These products add value for customers and long influencing the best-managed industrial companies. This
competitive advantage periods may allow for the creates opportunities for active managers to deploy capital
realization of strong returns on capital from the investment into mispriced value creators and protect value when the
to develop these products. market is too enthusiastic near term.
Industrial companies often complement organic growth
opportunities with value creating M&A. The rationale for
acquisitions may include scale, new technologies, and
attractive assets in a multi-industry portfolio of businesses.
The top industrial companies have demonstrated discipline
by returning cash to shareholders after exhausting organic
and inorganic investment opportunities. For example, Atlas
Copco has paid $9 billion in regular dividends over the past
10 years, and on three occasions has paid special dividends
worth a cumulative $3.3 billion.Market Performance June 2021
QTD YTD 2020 2019
AC World (DM+EM) 7.2 12.7 16.3 26.4
Developed Markets (DM) 7.4 13.3 15.9 27.5
Japan -0.4 1.5 13.1 19.6
Europe ex UK 7.8 11.6 12.1 25.0
UK 5.7 12.4 -9.0 23.2
USA 8.4 15.1 20.5 30.4
Emerging Markets (EM) 5.7 8.7 18.4 17.6
Asia 4.5 7.5 28.5 17.8
Regions
China 2.4 2.4 29.4 22.7
India 8.0 15.5 16.1 5.3
Korea 6.2 8.1 46.0 9.6
Taiwan 8.3 19.9 39.1 35.2
EMEA 7.6 16.4 -5.6 15.8
Russia 13.6 20.4 -11.6 50.1
South Africa 0.1 12.5 -4.9 11.2
Latin America 15.6 9.6 -14.1 19.4
Brazil 23.6 11.9 -19.1 29.3
Mexico 9.5 13.5 -1.6 12.9
Frontier Markets (FM) 14.1 16.1 2.1 13.8
Large Cap 4.3 6.5 19.6 19.3
Size
Small Cap 11.3 19.8 19.3 11.5
Communication Svcs 2.1 7.8 27.1 10.9
Discretionary 4.2 1.9 33.1 31.6
Staples 4.9 2.9 10.8 9.6
Energy 11.7 15.0 -14.9 19.4
Sectors
Financials 4.4 8.4 -7.9 12.0
Healthcare 14.4 8.6 55.5 2.9
Industrials 14.9 20.6 7.7 6.3
IT 4.1 9.6 58.5 40.8
Materials 9.5 20.0 26.2 7.7
Real Estate -3.5 0.9 -15.6 22.2
Utilities 3.7 7.2 -4.9 9.7
Quality -2.5 -2.4 -6.8 13.7
Valuation -0.9 9.6 -12.4 4.5
Style
Etrend 9.5 15.7 14.5 12.5
Momentum 8.7 13.0 9.7 16.1
Growth -0.2 -3.6 12.9 6.1
Composite 2.3 11.0 -5.3 16.8
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. Real Estate was added as a GICS sector effective 9/1/16.
Assignment to this sector has been applied retroactively to the index holdings. 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.Portfolio Performance June 2021
Since
Periods ended 30/06/2021 Quarter YTD 1 Year 3 Year 5 Year Inception*
William Blair SICAV - Emerging Markets 12.52% 15.68% 52.73% 17.01% 14.43% 11.91%
Small Cap Growth (Class Z USD)
MSCI Emerging Markets Small Cap (net) 11.25% 19.78% 63.75% 12.31% 11.86% 6.94%
*Inception 24/09/2013
The MSCI Emerging Markets Small Cap Index is a free float-adjusted market capitalization index that is designed to measure equity market performance of
small cap companies in emerging markets.
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.Performance Analysis (by sector) June 2021
The table below shows the calculated sector attribution of the William Blair SICAV - Emerging Markets Small Cap Growth portfolio vs. its
benchmark.
William Blair SICAV - Emerging Markets Small Cap Growth vs. MSCI Emerging Markets Small Cap (net)
01/04/2021 to 30/06/2021
William Blair SICAV - Emerging MSCI Emerging Markets Small Cap
Attribution Analysis
Markets Small Cap Growth (net)
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 2.4% 2.3% 0.0% 3.7% 7.3% 0.3% 0.1% -0.2% -0.1%
Consumer Discretionary 20.4% 20.6% 4.2% 12.3% 11.4% 1.4% 0.1% 1.9% 1.9%
Consumer Staples 5.5% 10.8% 0.6% 5.8% 8.3% 0.5% 0.0% 0.1% 0.1%
Energy 0.0% 0.0% 0.0% 2.0% 6.1% 0.1% 0.1% 0.0% 0.1%
Financials 8.2% 1.0% 0.0% 10.4% 8.6% 0.9% 0.0% -0.7% -0.7%
Health Care 2.6% 34.3% 0.8% 9.2% 15.7% 1.4% -0.3% 0.5% 0.2%
Industrials 20.6% 6.7% 1.4% 15.3% 18.8% 2.8% 0.4% -2.4% -2.1%
Information Technology 25.0% 16.2% 3.9% 17.6% 6.7% 1.3% -0.5% 2.2% 1.8%
Materials 11.5% 18.7% 2.0% 12.7% 15.7% 1.9% -0.2% 0.4% 0.2%
Real Estate 1.5% 1.0% 0.0% 6.7% 3.0% 0.2% 0.4% -0.1% 0.4%
Utilities 1.3% -2.2% 0.0% 4.1% 10.8% 0.4% 0.0% -0.2% -0.2%
Cash 0.9% - -0.4% 0.0% 0.0% 0.0% -0.5% 0.0% -0.5%
Total 100.0% 12.5% 12.5% 100.0% 11.3% 11.3% -0.3% 1.5% 1.3%
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.Performance Analysis (by region) June 2021
The table below shows the calculated regional attribution of the William Blair SICAV - Emerging Markets Small Cap Growth portfolio vs.
its benchmark.
William Blair SICAV - Emerging Markets Small Cap Growth vs. MSCI Emerging Markets Small Cap (net)
01/04/2021 to 30/06/2021
William Blair SICAV - Emerging MSCI Emerging Markets Small Cap
Attribution Analysis
Markets Small Cap Growth (net)
Issue
Average Total Contrib to Average Total Contrib to Allocation Selection Total
Region Weight Return Return Weight Return Return Effect Effect Effect
EM Asia 80.6% 10.5% 8.6% 76.2% 10.6% 8.2% 0.0% -0.1% -0.1%
EMEA 7.4% 18.0% 1.3% 13.5% 9.7% 1.3% 0.1% 0.7% 0.7%
Latin America 11.1% 28.5% 3.0% 10.1% 18.9% 1.8% 0.1% 1.0% 1.1%
Cash 0.9% - -0.4% 0.0% 0.0% 0.0% -0.5% 0.0% -0.5%
Total 100.0% 12.5% 12.5% 100.0% 11.3% 11.3% -0.3% 1.6% 1.3%
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.Top Contributors/Detractors June 2021
The tables below show the top contributors and detractors for the William Blair SICAV - Emerging Markets Small Cap Growth portfolio vs.
its benchmark.
Top Five Contributors (%) for the Period: 01/04/2021 to 30/06/2021
Issuer Sector Country Contribution To
Relative Return
momo.com Inc Consumer Discretionary Taiwan 0.70
F&F Holdings Co Ltd Consumer Discretionary South Korea 0.61
Coforge Ltd Information Technology India 0.58
TOTVS SA Information Technology Brazil 0.56
TCS Group Holding PLC Financials Russia 0.50
Top Five Detractors (%) for the Period: 01/04/2021 to 30/06/2021
Issuer Sector Country Contribution To
Relative Return
AU Small Finance Bank Ltd Financials India -0.68
RichWave Technology Corp Information Technology Taiwan -0.55
Affle India Ltd Communication Services India -0.35
Muangthai Capital PCL Financials Thailand -0.31
ASMedia Technology Inc Information Technology Taiwan -0.30
Index: MSCI Emerging Markets Small Cap (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 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.Portfolio Positioning June 2021
Regional Exposure Sectoral Exposure
78.5 -2.6 2.4 0.1
EM Asia Total Communication Services 1.1
76.4 -0.8 3.9
14.0 0.0 21.7 3.3
China Consumer Discretionary 4.4
10.3 -2.7 12.1
5.9 1.0
34.5 -1.1 Consumer Staples -1.4
India 6.0
17.5 0.9
-- 0.0
9.1 0.5 Energy 0.0
South Korea 2.0
18.0 2.3 -1.6
7.7
Financials 0.4
15.3 -1.2 10.1
Taiwan
21.6 -0.5 3.4 1.7
Health Care -1.2
8.3 1.3 9.5
EMEA Total
13.2 1.5 19.0 -3.7
Industrials -3.8
3.7 1.8 15.4
Russia -2.8
1.0 2.6 23.3
Information Technology -0.6
18.5
1.4 0.1
South Africa 12.7 3.2
3.6 0.4 Materials
12.3 1.2
11.6 1.3 -0.5
Latin America Total 1.3
10.3 -1.0 Real Estate -0.4
6.4
9.0 0.8 1.0 -0.7
Brazil Utilities
7.0 -1.9 3.8 -0.2
2.0 -0.2 -- 0.0
Mexico Other 0.0
1.8 0.3 --
1.6 0.0 1.6 0.0
Cash & Equivalents Cash & Equivalents 0.3
-- 0.3 --
William Blair Sicav - Emerging Markets Small Cap Growth William Blair Sicav - Emerging Markets Small Cap Growth Portfolio Diff Previous QTR
Portfolio Diff Previous QTR
MSCI Emerging Markets Small Cap (net) MSCI Emerging Markets Small Cap (net) Portfolio Diff YTD
Portfolio Diff YTD
Source: William Blair.
As of Date: 30/06/2021
Cash & Equivalents includes: cash and dividend accruals. Please refer to the ‘Important Disclosures’ section at the end of this document for further
information on investment risks and returns.Top Holdings by Market Cap June 2021
The table below shows the William Blair SICAV - Emerging Markets Small Cap Growth portfolio’s largest holdings as of 30/06/2021 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*
Mid Cap($3-15b) 24.3% 2.8%
Centre Testing International G China Industrials 2.8% 0.0%
TOTVS SA Brazil Information Technology 2.5% 0.0%
TCS Group Holding PLC Russia Financials 1.7% 0.0%
momo.com Inc Taiwan Consumer Discretionary 1.7% 0.2%
Airtac International Group Taiwan Industrials 1.6% 0.0%
Small Cap(Top Portfolio Changes June 2021
Top Portfolio Changes During the Period: 01/04/2021 to 30/06/2021
Security Name Country Sector
Ememory Technology Inc Taiwan Information Technology
Purchases
Azul Sa-Adr Brazil Industrials
New
Laurus Labs Ltd India Health Care
Makalot Industrial Co Ltd Taiwan Consumer Discretionary
Ozon Holdings Plc - Adr Russian Federation Consumer Discretionary
Randon Participacoes Sa-Pref Brazil Industrials
Liquidations
Escorts Ltd India Industrials
Zhejiang Dingli Machinery -A China Industrials
Silergy Corp China Information Technology
Tegma Gestao Logistica Brazil Industrials
Individual securities listed in this report are for informational purposes only. Holdings are subject to change at any time. This information does not constitute, and
should not be construed as, investment advice or recommendations with respect to the securities listed. Sectors are based on Global Industry Classification (GICS)
Sectors.Portfolio Characteristics June 2021
William Blair SICAV - Emerging MSCI Emerging Markets Small
Markets Small Cap Growth Cap (net) Difference
Quality
WB Quality Model (Percentile) 33 52
Return on Equity (%) 21.2 12.0 77%
Cash Flow ROIC (%) 21.0 13.3 58%
Debt/Equity (%) 53.6 69.4 -23%
Growth
WB Growth Model (Percentile) 29 44
Long-Term Growth (%) 29.1 20.8 40%
5-Year Historic EPS Growth (%) 21.3 13.7 56%
Reinvestment Rate (%) 14.3 9.4 52%
Earnings Trend
WB Earnings Trend Model (Percentile) 48 53
EPS Revision Breadth (%) 5.1 2.6 2.5
Valuation
WB Valuation Model (Percentile) 81 47
P/E (next 12 months) 32.0 14.5 121%
Dividend Yield (%) 0.8 2.0 -61%
Other
WB Composite Model (Percentile) 53 51
Float Adjusted Weighted Average Market Cap ($m) 2,265 1,055 115%
Number of Holdings 121 1,822
Active Share (%) 91 --
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.Holdings June 2021
Portfolio Portfolio Portfolio
Weight Weight Weight
EM Asia 78.46 EM Asia (continued) EM Asia (continued)
Cambodia 0.16 India (continued) India (continued)
Nagacorp Ltd 0.16 Tata Elxsi Ltd 1.30 Indraprastha Gas Ltd 0.30
China 14.04 Pi Industries Ltd 1.28 Endurance Technologies Ltd 0.26
Centre Testing Intl Group-A 2.76 Varun Beverages Ltd 1.24 Berger Paints India Ltd 0.25
Jiumaojiu International Hold 1.66 Navin Fluorine International 1.14 Kajaria Ceramics Ltd 0.24
Proya Cosmetics Co Ltd-A 1.05 Dixon Technologies India Ltd 1.06 Vmart Retail Ltd 0.22
By-Health Co Ltd-A 1.04 Laurus Labs Ltd 0.99 Havells India Ltd 0.20
Changzhou Xingyu Automotiv-A 0.84 Relaxo Footwears Ltd 0.98 Rbl Bank Ltd 0.20
China Lesso Group Holdings L 0.82 Cholamandalam Investment And 0.95 Kec International Ltd 0.15
Ever Sunshine Lifestyle Serv 0.82 Dr Lal Pathlabs Ltd 0.81 Pidilite Industries Ltd 0.15
A-Living Smart City Services 0.73 Motherson Sumi Systems Ltd 0.79 Hdfc Asset Management Co Ltd 0.14
China Meidong Auto Holdings 0.72 Trent Ltd 0.78 Indonesia 0.37
Weimob Inc 0.67 Godrej Properties Ltd 0.72 Bank Btpn Syariah Tbk Pt 0.37
Skshu Paint Co Ltd-A 0.63 Metropolis Healthcare Ltd 0.72 Malaysia 1.28
Estun Automation Co Ltd-A 0.55 Jk Cement Ltd 0.72 Inari Amertron Bhd 0.90
Iclick Interactive Asia-Adr 0.39 Computer Age Management Serv 0.69 Mr Diy Group M Bhd 0.38
Ovctek China Inc-A 0.38 Radico Khaitan Ltd 0.67 Philippines 0.99
Shanghai M&G Stationery In-A 0.36 Oberoi Realty Ltd 0.61 Wilcon Depot Inc 0.63
Jnby Design Ltd 0.25 Affle India Ltd 0.60 Intl Container Term Svcs Inc 0.35
Chacha Food Co Ltd-A 0.21 Crompton Greaves Consumer El 0.54 South Korea 9.10
Kingsoft Cloud Holdings-Adr 0.15 Apollo Hospitals Enterprise 0.54 F&F Co Ltd / New 1.96
India 34.49 Aavas Financiers Ltd 0.52 Leeno Industrial Inc 1.56
Coforge Limited 2.28 Indiamart Intermesh Ltd 0.48 Hansol Chemical Co Ltd 1.44
Au Small Finance Bank Ltd 1.75 Kansai Nerolac Paints Ltd 0.47 Nice Information Service Co 1.18
Astral Ltd 1.69 Amber Enterprises India Ltd 0.44 Wonik Ips Co Ltd 1.02
Srf Ltd 1.64 Sundram Fasteners Ltd 0.36 Pi Advanced Materials Co Ltd 0.97
Atul Ltd 1.61 Makemytrip Ltd 0.35 Nhn Kcp Corp 0.53
Balkrishna Industries Ltd 1.59 City Union Bank Ltd 0.33 Douzone Bizon Co Ltd 0.22
Aarti Industries Limited 1.44 Vinati Organics Ltd 0.30 Doosan Fuel Cell Co Ltd 0.17
As of Date: 30/06/2021
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.Holdings June 2021
Portfolio Portfolio
Weight Weight
EM Asia (continued) EMEA (continued)
South Korea (continued) Kenya 0.79
Rfhic Corp 0.06 Safaricom PLC 0.79
Taiwan 15.30 Poland 1.35
Aspeed Technology Inc 1.89 Dino Polska SA 1.35
Momo.Com Inc 1.64 Russia 3.65
Airtac International Group 1.61 Tcs Group Holding-Gdr Reg S 1.67
Ememory Technology Inc 1.60 Headhunter Group Plc-Adr 1.30
Sinbon Electronics Co Ltd 1.56 Ozon Holdings Plc - Adr 0.69
Parade Technologies Ltd 1.31 South Africa 1.35
Lotes Co Ltd 1.00 Transaction Capital 1.11
Voltronic Power Technology 0.98 Clicks Group Ltd 0.24
Elite Material Co Ltd 0.83 United Arab Emirates 0.54
Makalot Industrial Co Ltd 0.70 Abu Dhabi National Oil Co Fo 0.54
Hiwin Technologies Corp 0.45 Latin America 11.64
Sporton International Inc 0.45 Brazil 9.03
Poya International Co Ltd 0.43 Totvs SA 2.44
Richwave Technology Corp 0.36 Locaweb Servicos De Internet 1.83
Asmedia Technology Inc 0.25 Pet Center Comercio E Partic 1.24
Alchip Technologies Ltd 0.24 Sequoia Logistica E Transpor 0.74
Thailand 2.07 Azul Sa-Adr 0.72
Com7 Pcl-F 1.27 Arezzo Industria E Comercio 0.63
Muangthai Capital Pcl-Foreig 0.69 Infracommerce Cxaas SA 0.62
Carabao Group Pcl-F 0.11 Grupo Sbf SA 0.41
Vietnam 0.68 Aeris Industria E Comercio D 0.26
Hoa Phat Group Jsc 0.68 Cyrela Brazil Realty Sa Emp 0.15
EMEA 8.33 Mexico 2.01
Greece 0.65 Grupo Aeroport Del Sureste-B 1.10
Terna Energy SA 0.65 Grupo Aeroportuario Del Cent 0.91
Uruguay 0.60
Dlocal Ltd/Uruguay 0.60
Cash 1.56
Total 100.00
As of Date: 30/06/2021
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.Important Disclosures 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. 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 the R.C.S. Luxembourg under n° 98806 and approved by the CSSF as an undertaking for collective investment in transferable securities (UCITS) in accordance with the EU directive 2009/65/EC, as amended (the "Fund").
Important Disclosures
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 the Subscription Form are available free of charge in English and German from our website SICAV.williamblair.com or at the
registered office of the Management Company (33, rue de Gasperich, L-5826 Hesperange, Grand Duchy of Luxembourg), at the registered
office of the Fund (William Blair SICAV, 31, Z.A. Bourmicht, L-8070 Bertrange, Grand Duchy of Luxembourg) or from the Swiss
representative, First Independent Fund Services Limited, Klausstrasse 33, CH-8008 Zurich, and in German language at Marcard, Stein &
Co., Ballindamm 36, 20095 Hamburg, Germany, and at Bank of Austria Creditanstalt AG, Am Hof 2, 1010 Vienna, Austria.
This is a marketing document and does not contain personalized recommendations or investment advice. Recipients of this document
should make their own investment decisions based upon the Fund Documents listed above (which can be obtained free of charge) and in
accordance with their own financial objectives and financial resources and, if in any doubt, should seek advice from independent
professional advice as to risks and consequences of any investment.
William Blair makes no representations that this document or any contents contained on it are appropriate or available for use in any
jurisdiction. This information is not intended to be published or made available to any person in any jurisdiction where doing so would
result in contravention of any laws or regulations applicable to the user. The SICAV Fund is currently registered for marketing in: Austria,
Denmark, Finland, France, Germany, Ireland, Luxembourg, Norway, Singapore, Spain, Sweden, Switzerland and the UK. Therefore the
SICAV Fund is either not registered to be marketed in your jurisdiction or may only be marketed or offered to professional investors in
your jurisdiction.
To the extent permitted by applicable law, William Blair will accept no liability for any direct or consequential loss, damages, costs or
prejudices whatsoever arising from the use of this document or its contents.
Copyright © 2021 William Blair. "William Blair" refers to William Blair & Company, L.L.C., William Blair Investment Management, LLC,
and affiliates. No part of this material may be reproduced in any form, or referred to in any other publication, without express written
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