William Blair SICAV - Global Leaders Fund Class R (EUR)

Page created by Rene Chandler
 
CONTINUE READING
William Blair SICAV - Global Leaders Fund

                           Class R (EUR)

                                Portfolio Review

                                   June 2021

                                                          Andrew G. Flynn, CFA, Partner
                                                         Kenneth J. McAtamney, Partner
ISIN: LU1664183990                                                Portfolio Managers

                       FOR PROFESSIONAL INVESTORS ONLY
Summary & Outlook                                                                                                    June 2021

Market Review                                                      manager’s index (PMI) which rose to a record high level
                                                                   (63.4) in June.
Global equities continued to advance in the second quarter
(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
                                                                   Performance
significantly underperformed (-0.09% for the quarter and
+0.86% year-to-date). Energy also continued to rally
                                                                   Second quarter outperformance versus the MSCI ACWI IMI
(+10.08% for the quarter and +30.51% year-to-date) as
                                                                   (net) was primarily driven by positive stock selection
rising demand drove stronger crude oil prices.
                                                                   across most sectors. The Health Care and Consumer
US equities advanced (+8.36% for the quarter and +15.05%           Discretionary sectors were the most notable contributors
year-to-date) as investors welcomed news of additional             to relative return. Within the Health Care sector, Charles
federal spending to revive the economy. In addition to the         River Laboratories contributed to relative results. Charles
$1.9 trillion Covid relief plan and $2.3 trillion infrastructure   River is a contract research organization (CRO) that has
plan introduced in the first quarter, the Biden                    evolved to be the global leader in the early stage portion of
administration also announced a $1.8 trillion American             the research market with a dominant market share lead,
Families Plan emphasizing strong support for national              working on 85% of all FDA-approved drugs in both 2018
childcare to ensure an equitable recovery from the                 and 2019. The company has several key competitive
pandemic, especially for female workers and mothers.               advantages that support its market-leading position
Significant federal spending drove concerns over rising            including a global network, strong brand reputation, and
inflation. In May, headline inflation rose to 5.0% year on         broad product/service portfolio. Aristocrat Leisure within
year, above expectations.                                          Consumer Discretionary was an additional source of
                                                                   outperformance. The company is a leading content and
European equities kept pace with the benchmark (+7.26%             equipment supplier in the global slot machine market, with
for the quarter and +11.81% year-to-date) as several               an expanding share in the higher-margin revenue-sharing
European countries gradually relaxed restrictions on travel        segment thanks to strong performance of innovative
and business activity. Economic data was also supportive,          products. Digital has been a new growth driver for
specifically the Eurozone manufacturing purchasing                 Aristocrat, with in-house games and M&A steadily
Summary & Outlook                                                                                                June 2021
expanding the addressable market beyond land-based               increases to the U.S., offset by decreases to Japan and
casinos for sustainable longer-term growth. The company          Emerging Asia. The portfolio's weighting in Emerging
is recovering faster than market expectations where              Markets approximated 10% at the end of the period, down
revenues have normalized close to pre-COVID levels.              slightly from 11% at the beginning of the period.

                                                                 Outlook
Partially offsetting these effects was an overweight
allocation to the Europe ex-UK region, coupled with below        The market is experiencing a tug of war between the
average stock selection within the Information Technology        impressive acceleration of economic growth due to global
sector. Within Information Technology, Infineon                  re-openings, and fears of a resurgence of COVID virus case
Technologies, a leading semiconductor company based in           counts. We believe economic growth will win out. While
Germany, hampered relative performance. Infineon is a            concerning, the positive view is that the vaccines are
leader in structural opportunities in automotive and power       working, and the delta variant is proving not as harmful.
markets. This should continue to enable superior growth
driven by content gains and supportive regulation.               As for recent economic activity, it has been more of the
Infineon’s share price softened primarily due to capacity        same, with both consumption and production activity
constraints/supply shortages from the automotive segment         strong – in some cases above 2019 levels. While we expect
of their business.                                               a sequential peak in GDP growth likely occurred in 2Q, the
                                                                 remainder of the year should continue to be quite strong.
Positioning                                                      We believe that corporate earnings growth, which has been
During the second quarter, Health Care exposure was              impressive thus far in 2021, remains underestimated. In
increased through the purchase of Align Technology, the          fact, projected bottom-up corporate profit growth lags top-
maker of Invisalign clear aligners for the orthodontics          down GDP estimates by a wider margin than we saw
market. Align is the technology leader in the orthodontics       coming out of the global financial crisis of 2008 (GFC).
space, with a strong track record of innovation in clear         Thus, we are confident profit growth will continue to
aligners and the digital orthodontics ecosystem such as          surprise to the upside.
intraoral scanners. Since Align’s US patent expirations in
2017-2018, competition from traditional orthodontic              As is the case in almost every economic expansion period,
players has only reinforced the company’s long-standing          earnings growth has been the key market driver. We are
claim that clear aligners are a highly effective way of          now clearly in expansion mode, with the corporate profit
treating malocclusion for mild, moderate, and complex            picture and market leadership following the script.
cases. As such, the adoption of clear aligners is accelerating
and appears to be nearing an inflection point. Industrials       During the second quarter, we saw earnings revisions and
exposure was reduced during the period primarily due to          momentum lead market performance, while valuation
market depreciation coupled with a trim to Nihon M&A.            flipped from dominating in 1Q (typical of recovery periods)
From a geographic perspective, notable adjustments were          to not much of a factor. Quality and Growth re-asserted
Summary & Outlook                                                                                               June 2021
themselves positively. All of these characteristics are very   Corporate Capital Expenditures
typical of performance during an economic expansion and
we believe they are likely to continue.                        Corporate profit margins and cash flows have been
                                                               impressive, and we believe we are entering an era where
Inflation concerns have been a natural topic of debate all     more of that cash flow is likely to be directed to capital
year. We continue to foresee reflation back to long-term,      investment and research and development.
i.e., manageable, levels. In this unique cycle, we are
experiencing price increases driven by the re-opening of       We see two reasons for rapidly ramping capital spending
supply not keeping up with demand fast enough. While in        by corporates: 1) digitalization of businesses is now a
some cases we are already seeing a few industrial              survival imperative; and 2) shortening supply chains has
commodity prices reverting, we expect that it will take        become necessary to improve operational resilience.
another 3-6 months for the supply catch up to occur across
most industries.                                               We are witnessing it already: After the GFC, it took US
                                                               private sector non-residential investment nearly four years
The global market is up close to 40% over the last twelve      to recover to pre-crisis levels. By contrast, capex spending
months. While market valuations receive a lot of attention,    in Q1 2021 already surpassed the Q4 2019 peak.
perhaps unnoticed is that this market appreciation has         Intellectual property and software investment recovered
been driven entirely by earnings growth. The market has        by Q4 2020, compared to six quarters post-GFC.
actually de-rated a bit during this period.
                                                               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.
Summary & Outlook                                                                                                 June 2021
And this fragility was fully exposed by COVID-related           suggests a portfolio focus on industrials. In fact, many of
lockdowns and associated export restrictions. Companies         our portfolios, especially those that include developed
are looking to shore up their supply chains, in some            markets, have had significant overweight exposure to
instances by reducing or duplicating some parts of the          industrial industries for the last several years.
chain. Some of this was starting to happen in response to
chilling economic relations between the U.S. and China          The key attribute for any of our company investments is a
prior to the pandemic. COVID has only added more reasons        strong and durable competitive advantage, and industrials
to accelerate the buildout.                                     have several advantages in this regard, even compared to
                                                                the technology and consumer sectors, which may seem
Shifts in the geopolitical environment in which corporates      counter intuitive.
operate also support investment rather than cash
preservation. Since the early 1980s everything from             Many industrial applications are characterized by hard-to-
taxation to antitrust to regulatory and labor policies was      develop products that require domain knowledge, scale,
geared to improving corporate profitability. Today, there is    and manufacturing expertise. Route-to-market, capital
growing recognition that these policies may have gone too       allocation, and installed bases are other often powerful and
far. The operating environment is changing on the margin:       durable advantages.
pressure for stronger wage growth, especially at the
bottom of the income distribution is rising.                    High entry barriers and consolidated markets are also
                                                                powerful attributes. Industry structure is important as it
The G7 agreeing on a minimum corporate tax rate suggests        influences how industrial value creation is distributed and
that the race to the bottom is over. Antitrust authorities in   the risk of value destruction. Favorable market structures
China, Europe and the US are openly exploring ways to           exist in areas as diverse as North American rails, aircraft
bring competition standards to industries and businesses        production, airlines, HVAC manufacturing, and other niche
that have been able to behave as monopolies or quasi            markets.
monopolies. These changes incentivize corporate
investment, which in turn will likely expand supply and         Long duration growth
enable stronger economic growth without higher inflation.
We will have more to say on this topic in the coming            Although industrial company growth rates may be more
months and quarters.                                            modest compared to the fast-moving technology sector,
                                                                growth is often more durable and exploitable over long
                                                                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
Summary & Outlook                                                                                                  June 2021
failure, this results in strong inertia and risk aversion that   Domain knowledge and customer intimacy provides
slows adoption of new technologies. In contrast, consumer        opportunities to develop innovative new products and
technology is fast moving as consumers adopt new                 solutions. These products add value for customers and long
technologies rapidly in their daily lives. While growth rates    competitive advantage periods may allow for the
are slower for industrial companies, predictability and          realization of strong returns on capital from the investment
durability of growth allows companies to exploit                 to develop these products.
opportunities for years if not decades.
                                                                 Industrial companies often complement organic growth
Once a company has built an installed base it typically          opportunities with value creating M&A. The rationale for
provides an attractive aftermarket opportunity that results      acquisitions may include scale, new technologies, and
from demanding operating conditions, safety, and quality         attractive assets in a multi-industry portfolio of businesses.
considerations. Jet engines are a classic example where the
installed base often provides decades of lucrative services      The top industrial companies have demonstrated discipline
and parts revenue for manufacturers. Strong competitive          by returning cash to shareholders after exhausting organic
advantages, high switching costs, and customer risk              and inorganic investment opportunities. For example, Atlas
aversion allow for pricing power in many cases.                  Copco has paid $9 billion in regular dividends over the past
                                                                 10 years, and on three occasions has paid special dividends
The increasing focus on environmental and social                 worth a cumulative $3.3 billion.
considerations has strengthened the role of efficiency in the
customer value proposition. For many industrial                  Strategic use of financial leverage
companies, energy efficiency and safety have been
cornerstones of their value proposition from the beginning.      Long lived assets and strong competitive advantages allows
These companies enable the reduction of emissions and            for the comfortable use of modest leverage to boost
waste through new, more efficient products and                   returns. Re-leveraging with debt to maintain a constant
engineering-driven solutions. For example, Spirax-Sarco          capital structure is often used to enhance cash flows and
recently implemented solutions at a Nestle factory that          returns to equity holders. The strength of business models
reduced energy use by 45%, emissions by 43%, and water           and competitive advantages can also provide firepower to
use by 48%.                                                      flex debt levels higher to seek to capitalize on inorganic
                                                                 opportunities. For example, DSV has used leverage to make
Potential for strong cash generation and value creating          highly accretive acquisitions the past several years.
capital allocation
                                                                 Stock specific drivers
Industrial companies often generate strong cash flow that
can be used to fund value-creating organic and inorganic         Many industrial companies are cyclical and can be volatile
growth.                                                          stocks. While we are long term investors, we believe that
                                                                 the market tends to overreact to the economic cycles
Summary & Outlook                                                                                            June 2021
influencing the best-managed industrial companies. This       into mispriced value creators and protect value when the
creates opportunities for active managers to deploy capital   market is too enthusiastic near term.
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
                 Pacific ex JP                                   4.9                             9.6                             8.5                            18.3
                 Japan                                           -0.4                            1.5                            13.1                            19.6
Regions          Europe ex UK                                    7.8                            11.6                            12.1                            25.0
                 UK                                              5.7                            12.4                             -9.0                           23.2
                 Canada                                          10.0                           20.5                             6.9                            27.9
                 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
                 EMEA                                            7.6                            16.4                             -5.6                           15.8
                 Latin America                                   15.6                            9.6                            -14.1                           19.4
            Frontier Markets (FM)                                14.1                           16.1                             2.1                            13.8

            Large Cap                                            7.5                            12.3                            16.5                            26.7
Size

            Small Cap                                            5.7                            15.4                            16.3                            24.7

            Communication Svcs                                   8.1                            15.2                            23.2                            24.2
            Discretionary                                        5.7                            10.0                            34.5                            26.8
            Staples                                              5.3                             5.2                             8.5                            20.8
            Energy                                               10.1                           30.5                            -28.4                           11.6
Sectors

            Financials                                           5.8                            18.5                             -3.5                           22.9
            Healthcare                                           8.9                             9.2                            17.5                            23.2
            Industrials                                          4.9                            13.6                            12.2                            26.7
            IT                                                   10.2                           12.4                            45.2                            46.5
            Materials                                            5.9                            13.3                            21.5                            20.0
            Real Estate                                          8.2                            14.3                             -6.4                           24.6
            Utilities                                            -0.1                            0.9                             4.1                            21.3

            Quality                                              1.9                             -1.9                            -8.9                            5.6
            Valuation                                            -3.3                            5.4                            -10.3                           -0.1
Style

            Etrend                                               5.5                            11.4                             6.6                             5.2
            Momentum                                             6.9                             8.5                            10.3                             4.9
            Growth                                               2.0                             -3.4                            6.0                             4.1
            Composite                                            2.9                             6.9                             -9.0                            4.3
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. Name change from Telecommunication Services to Communication Services effective after close of business on 28/9/18;
industry and subindustry reclassifications effective 1/10/18.
Performance                                                                                                                                 June 2021

                                                                                                                                  Since
                   Periods ended 30/06/2021                                          Quarter         YTD         1 Year        Inception*
                   William Blair SICAV - Global Leaders Fund (Class R EUR)            8.21%        14.09%        35.15%          27.50%
                   MSCI ACWI IMI (net) (EUR)                                          6.22%        16.26%        33.48%          20.06%

*Inception 19/12/2018

The MSCI All Country World IMI Index is a free float-adjusted market capitalization index that is designed to measure equity market performance in the
global developed and emerging markets

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 our Web site 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 - Global Leaders Fund portfolio vs. its benchmark.

                                                William Blair SICAV - Global Leaders Fund vs. MSCI ACWI IMI (net)
                                                                   01/04/2021 to 30/06/2021

                                  William Blair SICAV - Global Leaders
                                                                                        MSCI ACWI IMI (net)                           Attribution Analysis
                                                  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                7.6%          12.4%           0.9%          8.6%           8.1%           0.7%          0.0%            0.3%            0.3%
Consumer Discretionary                18.5%         12.5%           2.2%          12.8%          5.7%           0.7%          -0.1%           1.3%            1.2%
Consumer Staples                      1.6%           9.5%           0.1%          6.6%           5.3%           0.4%          0.1%            0.1%            0.2%
Energy                                0.0%           0.0%           0.0%          3.3%          10.1%           0.3%          -0.1%           0.0%            -0.1%
Financials                            7.7%           7.9%           0.6%          14.3%          5.8%           0.8%          0.1%            0.1%            0.2%
Health Care                           14.0%         18.8%           2.5%          11.4%          8.9%           1.0%          0.1%            1.3%            1.4%
Industrials                           21.4%          4.5%           0.8%          11.0%          4.9%           0.5%          -0.2%           -0.1%           -0.4%
Information Technology                24.2%          8.5%           1.9%          20.3%         10.2%           2.1%          0.1%            -0.4%           -0.3%
Materials                             1.6%           -2.1%          0.0%          5.5%           5.9%           0.3%          0.1%            -0.1%           -0.1%
Real Estate                           1.0%          13.3%           0.1%          3.5%           8.2%           0.3%          0.0%            0.0%            0.0%
Utilities                             0.8%           -2.4%          0.0%          2.8%           -0.1%          0.0%          0.1%            0.0%            0.1%
Cash                                  1.7%             -           -0.1%          0.0%           0.0%           0.0%          -0.6%           0.0%            -0.6%
Total                                100.0%          9.1%           9.1%         100.0%          7.2%           7.2%          -0.5%           2.4%            1.9%

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 - Global Leaders Fund portfolio vs. its benchmark.

                                           William Blair SICAV - Global Leaders Fund vs. MSCI ACWI IMI (net)
                                                                  01/04/2021 to 30/06/2021

                               William Blair SICAV - Global
                                                                                  MSCI ACWI IMI (net)                             Attribution Analysis
                                      Leaders Fund
                                                                                                                                          Issue
                            Average         Total       Contrib to       Average          Total        Contrib to      Allocation       Selection         Total
Region                      Weight         Return        Return          Weight          Return         Return           Effect           Effect          Effect

   Pacific Ex Japan           5.5%          11.9%          0.6%            3.3%           4.9%            0.2%            -0.1%           0.4%            0.3%
   Japan                      4.9%          -0.4%          -0.1%           6.6%           -0.4%           0.0%            0.1%            0.0%            0.1%
   Europe+ME Ex U.K.         26.4%          10.6%          2.6%           14.2%           7.7%            1.1%            0.0%            0.7%            0.8%
   U.K.                       3.7%          6.9%           0.2%            4.2%           5.8%            0.2%            0.0%            0.0%            0.0%
   W Hemisphere               1.2%          19.1%          0.2%            3.1%          10.0%            0.3%            0.0%            0.1%            0.1%
   United States             46.6%          12.3%          5.4%           55.9%           8.4%            4.7%            -0.1%           1.7%            1.6%
   EM Asia                    8.3%          0.4%           0.0%           10.0%           4.5%            0.5%            0.0%            -0.3%           -0.3%
   EMEA                       0.0%          0.0%           0.0%            1.7%           7.7%            0.1%            0.0%            0.0%            0.0%
   Latin America              1.6%          5.8%           0.1%            1.1%          14.3%            0.2%            0.0%            -0.1%           -0.1%
   Cash                       1.7%             -           -0.1%           0.0%           0.0%            0.0%            -0.6%           0.0%            -0.6%
Total                        100.0%         9.1%           9.1%          100.0%           7.2%            7.2%            -0.5%           2.4%            1.9%

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 - Global Leaders Fund portfolio vs. its benchmark.

Top Five Contributors (%) for the Period: 01/04/2021 to 30/06/2021
Issuer                                                                   Sector                                  Country                             Contribution To
                                                                                                                                                     Relative Return
Charles River Laboratories Int                                           Health Care                             United States                             0.32
IDEXX Laboratories Inc                                                   Health Care                             United States                             0.25
Aristocrat Leisure Ltd                                                   Consumer Discretionary                  Australia                                 0.24
Lonza Group AG                                                           Health Care                             Switzerland                               0.23
Partners Group Holding AG                                                Financials                              Switzerland                               0.21

Top Five Detractors (%) for the Period:                     01/04/2021 to 30/06/2021
Issuer                                                                   Sector                                  Country                             Contribution To
                                                                                                                                                     Relative Return
Infineon Technologies AG                                                 Information Technology                  Germany                                  -0.33
Ryanair Holdings PLC                                                     Industrials                             Ireland                                  -0.24
HDFC Bank Ltd                                                            Financials                              India                                    -0.23
Southwest Airlines Co                                                    Industrials                             United States                            -0.22
Daikin Industries Ltd                                                    Industrials                             Japan                                    -0.21

Index: MSCI ACWI IMI (net)
Past performance does not guarantee future results. Performance cited represents past performance and current performance may be lower or higher
than the data quoted. Gross investment performance assumes reinvestment of dividends and capital gains, is gross of investment management fees and net of
transaction costs. Performance results will be reduced by the fees incurred 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

                            5.6                                                 0.3                                                  7.2                              0.0
                                                                                                  Communication Services
      Asia Ex-Japan                                                                                                                   8.6                            -0.3
                           3.2                                                  0.4
                                                                                                                                            18.7                      0.0
                                                                                                  Consumer Discretionary
                            4.7                                        -0.8                                                              12.9                                 0.2
               Japan
                             6.3                                      -1.9                                                     1.6                                    0.0
                                                                                                        Consumer Staples
                                                                                                                                  6.6                                         0.1
                                          26.0                         -0.4
 Europe+ME Ex U.K.                                                                                                            --                                             0.0
                                   14.0                                           2.0                            Energy
                                                                                                                                   3.4                                       0.0
                           3.6                                          -0.1                                                         7.6                            -0.3
    United Kingdom                                                                                            Financials
                           4.1                                                  0.4                                                        13.9                               0.1

                                                                                0.1                                                        15.5                                1.9
                          1.3                                                                                Health Care
Western Hemisphere                                                                                                                       11.6                                  1.4
                           3.1                                          -0.1
                                                                                                                                                20.5                -0.5
                                                                                                              Industrials                                                     1.0
                                                      48.0                        2.4                                                    10.9
       United States
                                                             56.4                1.0                                                              24.5              -0.1
                                                                                                  Information Technology                                           -1.8
                                                                                                                                                20.8
                                8.2                                   -0.7
            EM Asia                                                                                                            1.5                                  -0.2
                                 10.1                                 -1.0                                     Materials                                            -0.3
                                                                                                                                 5.3
                         --                                                     0.0                                            1.0                                           0.0
               EMEA                                                                                           Real Estate                                                    0.1
                          1.7                                                   0.0                                             3.5
                                                                                                                               0.8                                   -0.1
                          1.6                                                   0.0                              Utilities                                           -0.1
      Latin America                                                                                                             2.6
                          1.1                                                   0.0                                                                                          0.0
                                                                                                                              --
                                                                                                                   Other                                                     0.0
                          1.1                                          -0.6                                                   --
 Cash & Equivalents                                                                                                                                                 -0.6
                         --                                            -0.4                                                    1.1
                                                                                                      Cash & Equivalents                                            -0.4
                                                                                                                              --
                                                                    Portfolio Diff Previous QTR                William Blair Sicav - Global Leaders Fund     Portfolio Diff Previous QTR   Portfolio Diff YTD
 William Blair Sicav - Global Leaders Fund    MSCI ACWI IMI (net)
                                                                    Portfolio Diff YTD                         MSCI ACWI IMI (net)

  Source: William Blair.
  As of Date: 30/06/2021
  Cash & Equivalents includes: cash and dividend accruals.
Top Holdings by Market Cap                                                                                                                                        June 2021
The table below shows the William Blair SICAV - Global Leaders Fund 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*
                    Large Cap(>$20b)                                                                                       86.6%               70.1%
                    Alphabet Inc                              United States          Communication Services                 3.0%                1.9%
                    Microsoft Corp                            United States          Information Technology                 2.9%                2.5%
                    Amazon.com Inc                            United States          Consumer Discretionary                 2.8%                1.9%
                    Facebook Inc                              United States          Communication Services                 2.6%                1.1%
                    Airbus SE                                    France                    Industrials                      2.6%                0.1%

                    Mid Cap($5-20b)                                                                                         12.8%               17.6%
                    Ulta Beauty Inc                           United States          Consumer Discretionary                  2.0%                0.0%
                    Aristocrat Leisure Ltd                     Australia             Consumer Discretionary                  1.8%                0.0%
                    Charles River Laboratories Int            United States               Health Care                        1.8%                0.0%
                    MTU Aero Engines AG                        Germany                    Industrials                        1.6%                0.0%
                    Nihon M&A Center Inc                         Japan                    Industrials                        1.1%                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
                                  Align Technology Inc            United States                    Health Care

                 Purchases
                                  Southwest Airlines Co           United States                    Industrials

                   New
                                  None
                   Liquidations

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 - Global
                                                                               Leaders Fund                              MSCI ACWI IMI (net)   Difference
    Quality
    WB Quality Model (Percentile)                                                       21                                        33
    Return on Equity (%)                                                               18.7                                      16.3             15%
    Cash Flow ROIC (%)                                                                 21.9                                      20.2              8%
    Debt/Equity (%)                                                                    75.0                                      97.6            -23%
    Growth
    WB Growth Model (Percentile)                                                        45                                        51
    Long-Term Growth (%)                                                               21.1                                      17.6            19%
    5-Year Historic EPS Growth (%)                                                     16.5                                      14.3            15%
    Reinvestment Rate (%)                                                              18.5                                      16.8            10%
    Earnings Trend
    WB Earnings Trend Model (Percentile)                                                39                                        39
    EPS Revision Breadth (%)                                                           10.2                                       7.6             2.7
    Valuation
    WB Valuation Model (Percentile)                                                     85                                        64
    P/E (next 12 months)                                                               34.2                                      19.0            79%
    Dividend Yield (%)                                                                  0.6                                       1.7            -67%
    Other
    WB Composite Model (Percentile)                                                    44                                         40
    Float Adjusted Weighted Average Market Cap ($m)                                  246,722                                    255,473           -3%
    Number of Holdings                                                                 70                                        9,260
    Active Share (%)                                                                   84                                          --

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
                                  Country           Weight                                   Country            Weight                               Country           Weight
 COMMUNICATION SERVICES                                7.21 HEALTH CARE (continued)                                    INFORMATION TECHNOLOGY (continued)
   Alphabet Inc-Cl A              United States        3.02   Novo Nordisk A/S-B             Denmark              1.28   Hexagon Ab-B Shs            Sweden               2.09
   Facebook Inc-Class A           United States        2.55   Edwards Lifesciences Corp      United States        1.14   Paypal Holdings Inc         United States        1.90
   Tencent Holdings Ltd           China                1.65   Intuitive Surgical Inc         United States        1.09   Workday Inc-Class A         United States        1.36
 CONSUMER DISCRETIONARY                               18.69   Csl Ltd                        Australia            0.98   Adobe Inc                   United States        1.35
   Amazon.Com Inc                 United States        2.77   Align Technology Inc           United States        0.98   Keyence Corp                Japan                1.27
   Ulta Beauty Inc                United States        1.93   Veeva Systems Inc-Class A      United States        0.67   Fidelity National Info Serv United States        1.23
   Alibaba Group Holding Ltd      China                1.85   Fisher & Paykel Healthcare C   New Zealand          0.38   Adyen NV                    Netherlands          1.03
   Aristocrat Leisure Ltd         Australia            1.81 INDUSTRIALS                                          20.53   Atlassian Corp Plc-Class A  Australia            0.92
   Compass Group PLC              United Kingdom       1.81   Airbus Se                      France               2.54   Globant SA                  Argentina            0.90
   Aptiv PLC                      Ireland              1.79   Atlas Copco Ab-A Shs           Sweden               1.78   Halma PLC                   United Kingdom       0.42
   Lvmh Moet Hennessy Louis Vui   France               1.68   Ryanair Holdings Plc-Sp Adr    Ireland              1.69 MATERIALS                                          1.48
   Nike Inc -Cl B                 United States        1.58   Dsv Panalpina A/S              Denmark              1.67   Ecolab Inc                  United States        0.81
   Lululemon Athletica Inc        Canada               1.31   Mtu Aero Engines AG            Germany              1.58   Chr Hansen Holding A/S      Denmark              0.67
   Shenzhou International Group   China                0.90   Union Pacific Corp             United States        1.54 REAL ESTATE                                        0.95
   Mercadolibre Inc               Argentina            0.66   Daikin Industries Ltd          Japan                1.27   Prologis Inc                United States        0.95
   Evolution AB                   Sweden               0.60   Roper Technologies Inc         United States        1.16 UTILITIES                                          0.77
 CONSUMER STAPLES                                      1.62   Nihon M&A Center Inc           Japan                1.08   Nextera Energy Inc          United States        0.77
   Estee Lauder Companies-Cl A    United States        1.62   Smc Corp                       Japan                1.04 Cash                                               1.12
 FINANCIALS                                            7.56   Costar Group Inc               United States        0.89 Total                                            100.00
   Partners Group Holding AG      Switzerland          1.86   Southwest Airlines Co          United States        0.84
   Aia Group Ltd                  Hong Kong            1.51   Indutrade AB                   Sweden               0.77
   Hdfc Bank Ltd-Adr              India                1.48   Allegion PLC                   Ireland              0.77
   Blackrock Inc                  United States        1.45   Experian PLC                   United Kingdom       0.76
   Intercontinental Exchange In   United States        1.27   Rational AG                    Germany              0.58
 HEALTH CARE                                          15.54   Rentokil Initial PLC           United Kingdom       0.57
   Charles River Laboratories     United States        1.79 INFORMATION TECHNOLOGY                               24.52
   Unitedhealth Group Inc         United States        1.61   Microsoft Corp                 United States        2.86
   Idexx Laboratories Inc         United States        1.44   Mastercard Inc - A             United States        2.49
   Lonza Group Ag-Reg             Switzerland          1.43   Taiwan Semiconductor-Sp Adr    Taiwan               2.32
   Thermo Fisher Scientific Inc   United States        1.41   Infineon Technologies AG       Germany              2.22
   Zoetis Inc                     United States        1.33   Salesforce.Com Inc             United States        2.16

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,
Important Disclosures
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").

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
consent.
You can also read