William Blair Funds
William
Blair Funds
Prospectus
May 1,
2024
William
Blair Funds
|
|
|
|
|
| |
U.S. Equity Funds |
|
Class N |
|
Class I |
|
Class R6 |
Growth
Fund |
|
WBGSX |
|
BGFIX |
|
BGFRX |
Large
Cap Growth Fund |
|
LCGNX |
|
LCGFX |
|
LCGJX |
Mid
Cap Value Fund |
|
— |
|
WVMIX |
|
WVMRX |
Small-Mid
Cap Core Fund |
|
— |
|
WBCIX |
|
WBCRX |
Small-Mid
Cap Growth Fund |
|
WSMNX |
|
WSMDX |
|
WSMRX |
Small-Mid
Cap Value Fund |
|
— |
|
ISMVX |
|
RSMVX |
Small
Cap Growth Fund |
|
WBSNX |
|
WBSIX |
|
WBSRX |
Small
Cap Value Fund |
|
WBVNX |
|
ICSCX |
|
WBVRX |
|
|
| |
Global/International
Funds |
|
Class N |
|
Class I |
|
Class R6 |
Global
Leaders Fund |
|
WGGNX |
|
WGFIX |
|
BGGIX |
International
Leaders Fund |
|
WILNX |
|
WILIX |
|
WILJX |
International
Growth Fund |
|
WBIGX |
|
BIGIX |
|
WBIRX |
Institutional
International Growth Fund (WBIIX) |
|
— |
|
— |
|
— |
International
Small Cap Growth Fund |
|
WISNX |
|
WISIX |
|
WIISX |
Emerging
Markets Leaders Fund |
|
WELNX |
|
WBELX |
|
WELIX |
Emerging
Markets Growth Fund |
|
WBENX |
|
WBEIX |
|
BIEMX |
Emerging
Markets ex China Growth Fund |
|
— |
|
WXCIX |
|
WXCRX |
Emerging
Markets Small Cap Growth Fund |
|
WESNX |
|
BESIX |
|
WESJX |
China
Growth Fund |
|
— |
|
WICGX |
|
WRCGX |
|
|
| |
Emerging Markets Debt
Fund |
|
Class N |
|
Class I |
|
Class R6 |
Emerging
Markets Debt Fund |
|
— |
|
WEDIX |
|
WEDRX |
The
U.S. Securities and Exchange Commission has not approved or disapproved these
securities or passed upon the accuracy or adequacy of this Prospectus. Any
representation to the contrary is a criminal offense.
William
Blair Funds
150
North Riverside Plaza
Chicago,
Illinois 60606
TABLE
OF CONTENTS
|
|
|
| |
|
|
|
1 |
|
| |
|
|
|
1 |
|
| |
|
|
|
6 |
|
| |
|
|
|
11 |
|
| |
|
|
|
16 |
|
| |
|
|
|
21 |
|
| |
|
|
|
26 |
|
| |
|
|
|
30 |
|
| |
|
|
|
35 |
|
| |
|
|
|
41 |
|
| |
|
|
|
46 |
|
| |
|
|
|
52 |
|
| |
|
|
|
58 |
|
| |
|
|
|
63 |
|
| |
|
|
|
68 |
|
| |
|
|
|
74 |
|
| |
|
|
|
80 |
|
| |
|
|
|
86 |
|
| |
|
|
|
92 |
|
| |
|
|
|
98 |
|
| |
|
|
|
107 |
|
| |
|
|
|
110 |
|
| |
|
|
|
126 |
|
| |
|
|
|
133 |
|
| |
|
|
|
133 |
|
| |
|
|
|
133 |
|
| |
|
|
|
134 |
|
| |
|
|
|
135 |
|
| |
|
|
|
136 |
|
| |
|
|
|
136 |
|
| |
|
|
|
136 |
|
| |
|
|
|
137 |
|
| |
|
|
|
137 |
|
| |
|
|
|
141 |
|
| |
|
|
|
142 |
|
| |
|
|
|
143 |
|
| |
|
|
|
144 |
|
| |
|
|
|
146 |
|
| |
|
|
|
149 |
|
| |
|
|
|
151 |
|
| |
|
|
|
156 |
|
| |
|
|
|
187 |
|
i
WILLIAM
BLAIR GROWTH FUND |
SUMMARY
|
INVESTMENT
OBJECTIVE: The William Blair Growth Fund seeks
long-term capital appreciation.
FEES AND
EXPENSES: This table describes the fees and
expenses that you may pay if you buy, hold and sell shares of the Fund. You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples
below.
Shareholder Fees (fees paid directly from your
investment):
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
Class I |
|
|
Class R6 |
|
Maximum
Sales Charge (Load) Imposed on Purchases |
|
|
None |
|
|
|
None |
|
|
|
None |
|
Redemption
Fee |
|
|
None |
|
|
|
None |
|
|
|
None |
|
Annual Fund Operating Expenses (expenses that
you pay each year as a percentage of the value of your investment):
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
Class I |
|
|
Class R6 |
|
Management
Fee |
|
|
0.75% |
|
|
|
0.75% |
|
|
|
0.75% |
|
Distribution
(Rule 12b-1) Fee |
|
|
0.25% |
|
|
|
None |
|
|
|
None |
|
Other
Expenses |
|
|
0.26% |
|
|
|
0.16% |
|
|
|
0.12% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
1.26% |
|
|
|
0.91% |
|
|
|
0.87% |
|
Fee
Waiver and/or Expense Reimbursement* |
|
|
0.06% |
|
|
|
N/A |
|
|
|
N/A |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
|
|
1.20% |
|
|
|
0.91% |
|
|
|
0.87% |
|
* |
William
Blair Investment Management, LLC (the “Adviser”) has entered into a
contractual agreement with the Fund to waive fees and/or reimburse
expenses in order to limit the Fund’s operating expenses (excluding
interest expenses, taxes, brokerage commissions, acquired fund fees and
expenses, dividend and interest expenses on short sales, other
investment-related costs and extraordinary expenses, such as litigation
and other expenses not incurred in the ordinary course of the Fund’s
business) to 1.20% of average daily net assets for Class N shares
until April 30, 2025. The Adviser may not terminate this arrangement
prior to April 30, 2025 without
the approval of the Fund’s Board of Trustees.
|
Example: This example is intended to help you compare the cost of investing
in shares of the Fund with the cost of investing in other mutual funds. The
example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
example also assumes that your investment has a 5% return each year and the
Fund’s operating expenses remain the same. The figures reflect the expense
limitation for the first year. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
Class N |
|
$122 |
|
$394 |
|
$686 |
|
$1,517 |
Class I |
|
93 |
|
290 |
|
504 |
|
1,120 |
Class R6 |
|
89 |
|
278 |
|
482 |
|
1,073 |
Portfolio
Turnover: The Fund pays transaction costs, such as commissions, when it buys
and sells securities (or “turns over” its portfolio). A higher portfolio
turnover may indicate higher transaction costs and may result in higher taxes
when Fund shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example, affect the Fund’s
performance. During the most recent fiscal year, the Fund’s portfolio turnover
rate was 37% of the average value of its
portfolio.
1
PRINCIPAL INVESTMENT
STRATEGIES: The Fund invests
primarily in a diversified portfolio of equity securities, including common
stocks and other forms of equity investments (e.g., securities convertible into
common stocks), of U.S. growth companies of all sizes that are expected to
exhibit quality growth characteristics. The Fund invests primarily in equity
securities issued by companies that typically have market capitalizations no
smaller than the smallest capitalized company, and no larger than the largest
capitalized company, included in the Russell 3000® Index at the time of
the Fund’s investment. Securities of companies whose market capitalizations no
longer meet this definition after purchase may continue to be held in the Fund.
To a limited extent, the Fund may also purchase stocks of companies with
business characteristics and growth prospects similar to companies in the
Russell 3000® Index, but
that may have market capitalizations outside the range of companies included in
the index.
The
Russell 3000® Index is a
widely recognized, unmanaged index that measures the performance of the
3,000 largest U.S. companies. The size of companies in the Russell 3000® Index may change with market
conditions. In addition, changes to the composition of the Russell 3000® Index can change the market
capitalization range of the companies in the index. As of March 31, 2024,
the Russell 3000® Index
included securities issued by companies that ranged in size between $16.5
million and $3.1 trillion. The Russell 3000® Growth Index, the Fund’s
performance benchmark, measures the performance of Russell 3000® companies with higher
price-to-book ratios and higher forecasted growth values.
In
choosing investments, the Adviser performs fundamental company analysis and
focuses on stock selection. The Adviser evaluates the extent to which a company
meets the quality growth criteria set forth below. All of the criteria are
evaluated relative to the valuation of the security. The weight given to a
particular investment criterion will depend upon the circumstances, and Fund
holdings may not meet all of the following criteria: (a) the company should
be, or should have the expectation of becoming, a significant provider in the
primary markets it serves, (b) the company should have some distinctive
attribute relative to present or potential competitors (for example, this may
take the form of proprietary products or processes, a unique distribution
system, an entrenched brand name or an especially strong financial position
relative to its competition), (c) the company should participate in an
industry expected to grow rapidly due to economic factors or technological
change or should grow through market share gains in its industry and
(d) the company should have a strong management team.
PRINCIPAL
RISKS: The Fund’s
returns will vary, and you could lose money by investing in the
Fund. The following is a summary of the principal risks
associated with an investment in the Fund.
Equity Funds General Risk. Because the Fund
invests substantially all of its assets in equity securities of U.S. growth
companies, the primary risk is that the value of the equity securities it holds
might decrease in response to the activities of an individual company or in
response to general market, business and economic conditions. If this occurs,
the Fund’s share price may also decrease. In addition, there is the risk that
individual securities may not perform as expected or a strategy used by the
Adviser may fail to produce its intended result.
Market Risk. The value of the Fund’s
investments may go up or down, sometimes rapidly or unpredictably. The value of
an investment may decline due to factors affecting securities markets generally
or particular industries represented in the securities markets. The value of an
investment may decline due to general market conditions that are not
specifically related to a particular company, such as real or perceived adverse
economic conditions, recessions, inflation, rapid interest rate changes, changes
in the general outlook for corporate earnings, changes in interest or currency
rates or adverse investor sentiment generally. Events such as war, acts of
terrorism, social unrest, natural disasters, the spread of infectious illness or
other public health threats could also significantly impact the Fund and its
investments. The value of an investment may also decline due to factors that
affect a particular industry or industries, such as labor shortages or increased
production costs and competitive conditions within an industry. During a general
downturn in the securities markets, multiple asset classes may decline in value
simultaneously. Geopolitical and other events may also disrupt securities
markets and adversely affect global economies and markets and thereby decrease
the value of the Fund’s investments.
2
Smaller Company Risk. Stocks of smaller
companies involve greater risk than those of larger, more established companies.
This is because smaller companies may be in earlier stages of development, may
be dependent on a small number of products or services, may lack substantial
capital reserves and/or do not have proven track records. Smaller companies may
be traded in low volumes. This can increase volatility and increase the risk
that the Fund will not be able to sell a security on short notice at a
reasonable price. The securities of smaller companies may be more volatile and
less liquid than securities of large capitalized companies.
Share Ownership Concentration Risk. To the
extent that a significant portion of the Fund’s shares is held by a limited
number of shareholders or their affiliates, there is a risk that the share
trading activities of these shareholders could disrupt the Fund’s investment
strategies, which could have adverse consequences for the Fund and other
shareholders (e.g., by requiring the Fund to sell investments at inopportune
times or causing the Fund to maintain larger-than-expected cash positions
pending acquisition of investments).
Style Risk. Different investment styles (e.g.,
growth vs. value, quality bias, market capitalization focus) tend to shift in
and out of favor depending on market conditions and investor sentiment, and at
times when the growth investment style used by the Adviser for the Fund is out
of favor, the Fund may underperform other equity funds that use different
investment styles.
Focus Risk. To the extent that the Fund focuses
its investments in particular industries, asset classes or sectors of the
economy, any market changes affecting companies in those industries, asset
classes or sectors may impact the Fund’s performance.
Operational and Technology Risk. Cyber-attacks,
disruptions, or failures that affect the Fund’s service providers,
counterparties, market participants, or issuers of securities held by the Fund
may adversely affect the Fund and its shareholders, including by causing losses
for the Fund or impairing Fund operations.
The
Fund is not intended to be a complete investment program. The Fund is designed
for long-term investors.
FUND
PERFORMANCE HISTORY: The information below provides some indication of
the risks of investing in the Fund by showing changes in the Fund’s performance
from year to year and by showing how the Fund’s average annual total returns for
the periods indicated compare with those of a broad measure of market
performance and an additional index. The S&P 500® Index represents a broad
measure of market performance, while the Russell 3000® Growth Index is generally
representative of the market sectors or types of investments in which the Fund
invests. The
Fund’s past performance (before and after taxes) does not necessarily indicate
how it will perform in the future. For more recent performance
information, go to www.williamblairfunds.com or
call 1‑800‑635‑2886.
Annual Total
Returns. The bar chart below provides an illustration of how the Fund’s
performance has varied in each of the last ten calendar years for Class N
shares.
|
|
|
| |
|
|
Highest Quarterly Return
25.68% (2Q20) |
|
Lowest Quarterly Return
(21.42)% (2Q22) |
3
Average Annual
Total Returns (For the periods ended December 31,
2023). The table below shows returns on a before-tax and
after-tax basis for Class N shares and on a before-tax basis for
Class I and Class R6 shares. After-tax returns for Class I and
Class R6 shares will vary. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. In some instances, the “Return After Taxes on
Distributions and Sale of Fund Shares” may be greater than the “Return Before
Taxes” because the investor is assumed to be able to use the capital loss on the
sale of Fund shares to offset other taxable capital gains.
Actual after-tax returns depend on an investor’s tax situation and may differ
from those shown. After-tax returns are not relevant to investors
who hold their Fund shares through tax-deferred arrangements, such as 401(k)
plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Class N
Shares |
|
|
|
| |
|
|
| |
|
| |
Return
Before Taxes |
|
|
37.76% |
|
|
|
16.25% |
|
|
|
11.92% |
|
Return
After Taxes on Distributions |
|
|
34.01% |
|
|
|
13.33% |
|
|
|
8.11% |
|
Return
After Taxes on Distributions and Sale of Fund Shares |
|
|
24.97% |
|
|
|
12.77% |
|
|
|
8.60% |
|
|
|
| |
Class I
Shares |
|
|
|
| |
|
|
| |
|
| |
Return
Before Taxes |
|
|
38.15% |
|
|
|
16.57% |
|
|
|
12.25% |
|
|
|
| |
S&P 500® Index
(reflects no deduction for fees, expenses or taxes) |
|
|
26.29% |
|
|
|
15.69% |
|
|
|
12.03% |
|
Russell
3000® Growth
Index (reflects no deduction for fees, expenses or
taxes) |
|
|
41.21% |
|
|
|
18.85% |
|
|
|
14.33% |
|
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
|
Since Share Class Inception (May 2,
2019) |
|
Class R6
Shares |
|
|
|
| |
|
| |
Return
Before Taxes |
|
|
38.19% |
|
|
|
13.50% |
|
|
| |
S&P 500® Index
(reflects no deduction for fees, expenses or taxes) |
|
|
26.29% |
|
|
|
12.94% |
|
Russell
3000® Growth
Index (reflects no deduction for fees, expenses or
taxes) |
|
|
41.21% |
|
|
|
15.60% |
|
MANAGEMENT:
Investment Adviser. William Blair Investment
Management, LLC is the investment adviser of the Fund.
Portfolio Manager. David Fording and Mark
Thompson, Partners of the Adviser, co-manage the Fund. Mr. Fording has
managed or co-managed the Fund since 2006. Mr. Thompson has co-managed the Fund
since 2024.
PURCHASE AND SALE OF FUND SHARES:
Class N Share Purchase. The minimum
initial investment for an account generally is $2,500. The minimum subsequent
investment generally is $1,000. Certain exceptions to the minimum initial and
subsequent investment amounts may apply. See “Your Account—Class N Shares”
for additional information on eligibility requirements applicable to purchasing
Class N shares.
4
Class I Share Purchase. The minimum
initial investment for an account generally is $500,000 (or any lesser amount
if, in William Blair’s opinion, the investor has adequate intent and
availability of funds to reach a future level of investment of $500,000). There
is no minimum for subsequent purchases. There is no minimum initial investment
for qualified retirement plans, including, but not limited to, 401(k) plans, 457
plans, employer-sponsored 403(b) plans, defined benefit plans and other similar
accounts, or plans whereby Class I shares are held through omnibus accounts
(either at the plan level or the level of the plan administrator) and certain
other accounts. William Blair may make certain additional exceptions to the
minimum initial investment amount in its discretion. Class I shares are
only available to certain investors. See “Your Account—Class I Shares” for
additional information on the eligibility requirements and investment minimums
applicable to purchasing Class I shares.
Class R6 Share Purchase. The minimum
initial investment for an account is $1 million (or any lesser amount if,
in William Blair’s opinion, the investor has adequate intent and availability of
funds to reach a future level of investment of $1 million). There is no minimum
for subsequent purchases. There is no minimum initial investment for qualified
retirement plans, including, but not limited to, 401(k) plans, 457 plans,
employer-sponsored 403(b) plans, defined benefit plans and other similar
accounts, or plans whereby Class R6 shares are held through omnibus
accounts (either at the plan level or the level of the plan administrator) and
certain other accounts. William Blair may make certain additional exceptions to
the minimum initial investment amount in its discretion. Class R6 shares
are only available to certain investors. See “Your Account—Class R6 Shares”
for additional information on eligibility requirements and investment minimums
applicable to purchasing Class R6 shares.
Sale. Shares of the Fund are redeemable on any
day the New York Stock Exchange is open for business by mail, wire or telephone,
depending on the elections you make in the account application.
TAX INFORMATION: The Fund intends to make
distributions that may be taxed as ordinary income or capital gains, unless you
are investing through a tax-advantaged investment plan. If you are investing
through a tax-advantaged investment plan, withdrawals from the tax-advantaged
investment plan may be subject to taxes.
PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL
INTERMEDIARIES: If you purchase shares of the Fund through a
broker-dealer or other financial intermediary (such as a bank), the Fund and its
related companies may pay the intermediary for the sale of shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
5
WILLIAM
BLAIR LARGE CAP GROWTH FUND |
SUMMARY
|
INVESTMENT
OBJECTIVE: The William Blair Large Cap Growth
Fund seeks long-term capital appreciation.
FEES AND
EXPENSES: This table describes the fees and
expenses that you may pay if you buy, hold and sell shares of the Fund. You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples
below.
Shareholder Fees (fees paid directly from your
investment):
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
Class I |
|
|
Class R6 |
|
Maximum
Sales Charge (Load) Imposed on Purchases |
|
|
None |
|
|
|
None |
|
|
|
None |
|
Redemption
Fee |
|
|
None |
|
|
|
None |
|
|
|
None |
|
Annual Fund Operating Expenses (expenses that
you pay each year as a percentage of the value of your investment):
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
Class I |
|
|
Class R6 |
|
Management
Fee |
|
|
0.60% |
|
|
|
0.60% |
|
|
|
0.60% |
|
Distribution
(Rule 12b-1) Fee |
|
|
0.25% |
|
|
|
None |
|
|
|
None |
|
Other
Expenses |
|
|
0.19% |
|
|
|
0.18% |
|
|
|
0.05% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
1.04% |
|
|
|
0.78% |
|
|
|
0.65% |
|
Fee
Waiver and/or Expense Reimbursement* |
|
|
0.14% |
|
|
|
0.13% |
|
|
|
0.05% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
|
|
0.90% |
|
|
|
0.65% |
|
|
|
0.60% |
|
* |
William
Blair Investment Management, LLC (the “Adviser”) has entered into a
contractual agreement with the Fund to waive fees and/or reimburse
expenses in order to limit the Fund’s operating expenses (excluding
interest expenses, taxes, brokerage commissions, acquired fund fees and
expenses, dividend and interest expenses on short sales, other
investment-related costs and extraordinary expenses, such as litigation
and other expenses not incurred in the ordinary course of the Fund’s
business) to 0.90%, 0.65% and 0.60% of average daily net assets for
Class N, Class I and Class R6 shares, respectively, until
April 30, 2025. The Adviser may not terminate this arrangement prior
to April 30, 2025 without
the approval of the Fund’s Board of Trustees.
|
Example: This example is intended to help you compare the cost of investing
in shares of the Fund with the cost of investing in other mutual funds. The
example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
example also assumes that your investment has a 5% return each year and the
Fund’s operating expenses remain the same. The figures reflect the expense
limitation for the first year. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
Class N |
|
$92 |
|
$317 |
|
$560 |
|
$1,258 |
Class I |
|
66 |
|
236 |
|
420 |
|
954 |
Class R6 |
|
61 |
|
203 |
|
357 |
|
806 |
Portfolio
Turnover: The Fund pays
transaction costs, such as commissions, when it buys and sells securities (or
“turns over” its portfolio). A higher portfolio turnover may indicate higher
transaction costs and may result in
6
higher
taxes when Fund shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example, affect the Fund’s
performance. During the most recent fiscal year, the Fund’s portfolio turnover
rate was 43% of the average value of its
portfolio.
PRINCIPAL INVESTMENT
STRATEGIES: Under normal market
conditions, the Fund invests at least 80% of its net assets (plus the amount of
any borrowings for investment purposes) in stocks of large capitalized (“large
cap”) companies. The Fund invests primarily in a portfolio of equity securities,
including common stocks and other forms of equity investments (e.g., securities
convertible into common stocks), of large cap U.S. growth companies that are
expected to exhibit quality growth characteristics. For purposes of the Fund,
the Adviser considers a company to be a large cap company if it has a market
capitalization no smaller than the smallest capitalized company included in the
Russell 1000® Index at
the time of the Fund’s investment. Securities of companies whose market
capitalizations no longer meet this definition after purchase may continue to be
held in the Fund. To a limited extent, the Fund may also purchase stocks of
companies with business characteristics and growth prospects similar to large
cap companies, but that may have market capitalizations below the market
capitalization of the smallest member of the Russell 1000® Index.
The
Russell 1000® Index is a
widely recognized, unmanaged index that measures the performance of the
1,000 largest U.S. companies. The companies in the Russell 1000® Index are considered
representative of large cap companies. The size of companies in the Russell
1000® Index may change
with market conditions. In addition, changes to the composition of the Russell
1000® Index can change
the market capitalization range of the companies included in the index. As of
March 31, 2024, the Russell 1000® Index included securities
issued by companies that ranged in size between $351.9 million and $3.1
trillion. The Russell 1000® Growth Index,
the Fund’s performance benchmark, measures the performance of those Russell 1000
companies with a greater-than-average growth orientation.
In
choosing investments, the Adviser performs fundamental company analysis and
focuses on stock selection. The Adviser evaluates the extent to which a company
meets the quality growth criteria set forth below. All of the criteria are
evaluated relative to the valuation of the security. The weight given to a
particular investment criterion will depend upon the circumstances, and Fund
holdings may not meet all of the following criteria: (a) the company should
be, or should have the expectation of becoming, a significant provider in the
primary markets it serves, (b) the company should have some distinctive
attribute relative to present or potential competitors (for example, this may
take the form of proprietary products or processes, a unique distribution
system, an entrenched brand name or an especially strong financial position
relative to its competition), (c) the company should participate in an
industry expected to grow rapidly due to economic factors or technological
change or should grow through market share gains in its industry and
(d) the company should have a strong management team.
THE
FUND IS NON-DIVERSIFIED UNDER THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED,
AND MAY INVEST A LARGER PERCENTAGE OF ITS ASSETS IN FEWER ISSUERS THAN
DIVERSIFIED MUTUAL FUNDS.
PRINCIPAL
RISKS: The Fund’s
returns will vary, and you could lose money by investing in the
Fund. The following is a summary of the principal risks
associated with an investment in the Fund.
Equity Funds General Risk. Because the Fund
invests substantially all of its assets in equity securities of large cap U.S.
growth companies, the primary risk is that the value of the equity securities it
holds might decrease in response to the activities of an individual company or
in response to general market, business and economic conditions. If this occurs,
the Fund’s share price may also decrease. In addition, there is the risk that
individual securities may not perform as expected or a strategy used by the
Adviser may fail to produce its intended result.
Market Risk. The value of the Fund’s
investments may go up or down, sometimes rapidly or unpredictably. The value of
an investment may decline due to factors affecting securities markets generally
or particular
7
industries
represented in the securities markets. The value of an investment may decline
due to general market conditions that are not specifically related to a
particular company, such as real or perceived adverse economic conditions,
recessions, inflation, rapid interest rate changes, changes in the general
outlook for corporate earnings, changes in interest or currency rates or adverse
investor sentiment generally. Events such as war, acts of terrorism, social
unrest, natural disasters, the spread of infectious illness or other public
health threats could also significantly impact the Fund and its investments. The
value of an investment may also decline due to factors that affect a particular
industry or industries, such as labor shortages or increased production costs
and competitive conditions within an industry. During a general downturn in the
securities markets, multiple asset classes may decline in value simultaneously.
Geopolitical and other events may also disrupt securities markets and adversely
affect global economies and markets and thereby decrease the value of the Fund’s
investments.
Share Ownership Concentration Risk. To the
extent that a significant portion of the Fund’s shares is held by a limited
number of shareholders or their affiliates, there is a risk that the share
trading activities of these shareholders could disrupt the Fund’s investment
strategies, which could have adverse consequences for the Fund and other
shareholders (e.g., by requiring the Fund to sell investments at inopportune
times or causing the Fund to maintain larger-than-expected cash positions
pending acquisition of investments).
Non-Diversification Risk. The Fund is
non-diversified, meaning that it is permitted to invest a larger percentage of
its assets in fewer issuers than diversified mutual funds. Thus, the Fund may be
more susceptible to adverse developments affecting any single issuer held in its
portfolio, and may be more susceptible to greater losses because of these
developments.
Style Risk. Different investment styles (e.g.,
growth vs. value, quality bias, market capitalization focus) tend to shift in
and out of favor depending on market conditions and investor sentiment, and at
times when the growth investment style used by the Adviser for the Fund is out
of favor, the Fund may underperform other equity funds that use different
investment styles.
Focus Risk. To the extent that the Fund focuses
its investments in particular industries, asset classes or sectors of the
economy, any market changes affecting companies in those industries, asset
classes or sectors may impact the Fund’s performance.
Operational and Technology Risk. Cyber-attacks,
disruptions, or failures that affect the Fund’s service providers,
counterparties, market participants, or issuers of securities held by the Fund
may adversely affect the Fund and its shareholders, including by causing losses
for the Fund or impairing Fund operations.
The
Fund is not intended to be a complete investment program. The Fund is designed
for long-term investors.
FUND
PERFORMANCE HISTORY: The information below provides some indication of
the risks of investing in the Fund by showing changes in the Fund’s performance
from year to year and by showing how the Fund’s average annual total returns for
the periods indicated compare with those of a broad measure of market
performance and an additional index. The Fund has added the
performance of the Russell 1000® Index, which represents a
broad measure of market performance, to comply with new regulatory requirements.
The table also includes the performance of the Russell 1000® Growth Index, which is
generally representative of the market sectors or types of investments in which
the Fund invests. The
Fund’s past performance (before and after taxes) does not necessarily indicate
how it will perform in the future. For more recent performance
information, go to www.williamblairfunds.com or
call 1‑800‑635‑2886.
8
Annual Total
Returns. The bar chart below provides an illustration of how the Fund’s
performance has varied in each of the last ten calendar years for Class N
shares.
|
|
|
| |
|
|
Highest Quarterly
Return
25.58% (2Q20) |
|
Lowest Quarterly Return
(22.25)% (2Q22) |
Average Annual
Total Returns (For the periods ended December 31,
2023). The table below shows returns on a before-tax and
after-tax basis for Class N shares and on a before-tax basis for
Class I and Class R6 shares. After-tax returns for Class I and
Class R6 shares will vary. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. In some instances, the “Return After Taxes on
Distributions and Sale of Fund Shares” may be greater than the “Return Before
Taxes” because the investor is assumed to be able to use the capital loss on the
sale of Fund shares to offset other taxable capital gains.
Actual after-tax returns depend on an investor’s tax situation and may differ
from those shown. After-tax returns are not relevant to investors
who hold their Fund shares through tax-deferred arrangements, such as 401(k)
plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Class N
Shares |
|
|
|
| |
|
|
| |
|
| |
Return
Before Taxes |
|
|
40.11% |
|
|
|
17.51% |
|
|
|
14.40% |
|
Return
After Taxes on Distributions |
|
|
40.11% |
|
|
|
16.65% |
|
|
|
12.85% |
|
Return
After Taxes on Distributions and Sale of Fund Shares |
|
|
23.75% |
|
|
|
14.08% |
|
|
|
11.41% |
|
|
|
| |
Class I
Shares |
|
|
|
| |
|
|
| |
|
| |
Return
Before Taxes |
|
|
40.48% |
|
|
|
17.80% |
|
|
|
14.70% |
|
|
|
| |
Russell
1000®
Index (reflects no deduction for fees, expenses or
taxes) |
|
|
26.53% |
|
|
|
15.52% |
|
|
|
11.80% |
|
Russell
1000® Growth
Index (reflects no deduction for fees, expenses or
taxes) |
|
|
42.68% |
|
|
|
19.50% |
|
|
|
14.86% |
|
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
|
Since Share Class Inception (May 2,
2019) |
|
Class R6
Shares |
|
|
|
| |
|
| |
Return
Before Taxes |
|
|
40.56% |
|
|
|
14.79% |
|
|
| |
Russell
1000®
Index (reflects no deduction for fees, expenses or
taxes) |
|
|
26.53% |
|
|
|
12.77% |
|
Russell
1000® Growth
Index (reflects no deduction for fees, expenses or
taxes) |
|
|
42.68% |
|
|
|
16.27% |
|
9
MANAGEMENT:
Investment Adviser. William Blair Investment
Management, LLC is the investment adviser of the Fund.
Portfolio Managers. James Golan and David
Ricci, Partners of the Adviser, co-manage the Fund. Mr. Golan has
co-managed the Fund since 2005. Mr. Ricci has co-managed the Fund since
2011.
PURCHASE AND SALE OF FUND SHARES:
Class N Share Purchase. The minimum
initial investment for an account generally is $2,500. The minimum subsequent
investment generally is $1,000. Certain exceptions to the minimum initial and
subsequent investment amounts may apply. See “Your Account—Class N Shares”
for additional information on eligibility requirements applicable to purchasing
Class N shares.
Class I Share Purchase. The minimum
initial investment for an account generally is $500,000 (or any lesser amount
if, in William Blair’s opinion, the investor has adequate intent and
availability of funds to reach a future level of investment of $500,000). There
is no minimum for subsequent purchases. There is no minimum initial investment
for qualified retirement plans, including, but not limited to, 401(k) plans, 457
plans, employer-sponsored 403(b) plans, defined benefit plans and other similar
accounts, or plans whereby Class I shares are held through omnibus accounts
(either at the plan level or the level of the plan administrator) and certain
other accounts. William Blair may make certain additional exceptions to the
minimum initial investment amount in its discretion. Class I shares are
only available to certain investors. See “Your Account—Class I Shares” for
additional information on the eligibility requirements and investment minimums
applicable to purchasing Class I shares.
Class R6 Share Purchase. The minimum
initial investment for an account is $1 million (or any lesser amount if,
in William Blair’s opinion, the investor has adequate intent and availability of
funds to reach a future level of investment of $1 million). There is no minimum
for subsequent purchases. There is no minimum initial investment for qualified
retirement plans, including, but not limited to, 401(k) plans, 457 plans,
employer-sponsored 403(b) plans, defined benefit plans and other similar
accounts, or plans whereby Class R6 shares are held through omnibus
accounts (either at the plan level or the level of the plan administrator) and
certain other accounts. William Blair may make certain additional exceptions to
the minimum initial investment amount in its discretion. Class R6 shares
are only available to certain investors. See “Your Account—Class R6 Shares”
for additional information on eligibility requirements and investment minimums
applicable to purchasing Class R6 shares.
Sale. Shares of the Fund are redeemable on any
day the New York Stock Exchange is open for business by mail, wire or telephone,
depending on the elections you make in the account application.
TAX INFORMATION: The Fund intends to make
distributions that may be taxed as ordinary income or capital gains, unless you
are investing through a tax-advantaged investment plan. If you are investing
through a tax-advantaged investment plan, withdrawals from the tax-advantaged
investment plan may be subject to taxes.
PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL
INTERMEDIARIES: If you purchase shares of the Fund through a
broker-dealer or other financial intermediary (such as a bank), the Fund and its
related companies may pay the intermediary for the sale of shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
10
WILLIAM
BLAIR MID CAP VALUE FUND |
SUMMARY
|
INVESTMENT
OBJECTIVE: The William Blair Mid Cap Value Fund seeks long-term capital
appreciation.
FEES AND
EXPENSES: This table describes the fees and expenses that you may pay if you
buy, hold and sell shares of the Fund. You may pay other fees, such as brokerage
commissions and other fees to financial intermediaries, which are not reflected
in the tables and examples below.
Shareholder Fees (fees paid directly from your
investment):
|
|
|
|
|
|
|
| |
|
|
Class I |
|
|
Class R6 |
|
Maximum
Sales Charge (Load) Imposed on Purchases |
|
|
None |
|
|
|
None |
|
Redemption
Fee |
|
|
None |
|
|
|
None |
|
Annual Fund Operating Expenses (expenses that
you pay each year as a percentage of the value of your investment):
|
|
|
|
|
|
|
| |
|
|
Class I |
|
|
Class R6 |
|
Management
Fee |
|
|
0.70% |
|
|
|
0.70% |
|
Distribution
(Rule 12b-1) Fee |
|
|
None |
|
|
|
None |
|
Other
Expenses |
|
|
8.38% |
|
|
|
8.32% |
|
| |
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
9.08% |
|
|
|
9.02% |
|
Fee
Waiver and/or Expense Reimbursement* |
|
|
8.33% |
|
|
|
8.32% |
|
| |
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
|
|
0.75% |
|
|
|
0.70% |
|
* |
William
Blair Investment Management, LLC (the “Adviser”) has entered into a
contractual agreement with the Fund to waive fees and/or reimburse
expenses in order to limit the Fund’s operating expenses (excluding
interest expenses, taxes, brokerage commissions, acquired fund fees and
expenses, dividend and interest expenses on short sales, other
investment-related costs and extraordinary expenses, such as litigation
and other expenses not incurred in the ordinary course of the Fund’s
business) to 0.75% and 0.70% of average daily net assets for Class I
and Class R6 shares, respectively, until April 30, 2025. The
Adviser may not terminate this contractual agreement prior to
April 30, 2025 without
the approval of the Fund’s Board of Trustees. The Adviser is entitled to
recoupment of previously waived fees and reimbursed expenses for a period
of three years subsequent to the Fund’s commencement of operations (i.e. March 16, 2025) to the extent
that such recoupment does not cause the annual Fund operating expenses
(after the recoupment is taken into account) to exceed both (1) the
expense limit in place when such amounts were waived or reimbursed and
(2) the Fund’s current expense limitation.
|
Example: This example is intended to help you compare the cost of investing
in shares of the Fund with the cost of investing in other mutual funds. The
example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
example also assumes that your investment has a 5% return each year and the
Fund’s operating expenses remain the same. The figures reflect the expense
limitation for the first year. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
Class I |
|
$77 |
|
$1,893 |
|
$3,565 |
|
$7,182 |
Class R6 |
|
72 |
|
1,878 |
|
3,543 |
|
7,152 |
Portfolio
Turnover: The Fund pays
transaction costs, such as commissions, when it buys and sells securities (or
“turns over” its portfolio). A higher portfolio turnover may indicate higher
transaction costs and may result in
11
higher
taxes when Fund shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example, affect the Fund’s
performance. During the most recent fiscal year, the Fund’s portfolio turnover
rate was 32% of the average value of its
portfolio.
PRINCIPAL INVESTMENT
STRATEGIES: Under normal
circumstances, the Fund invests at least 80% of its net assets (plus the amount
of any borrowings for investment purposes) in equity securities of
medium-capitalized (“mid cap”) companies. For purposes of the Fund, the Adviser
considers a company to be a mid cap company if it has a market capitalization no
smaller than the smallest capitalized company, and no larger than the largest
capitalized company, included in the Russell Midcap® Index at the time of the
Fund’s investment. Securities of companies whose market capitalizations no
longer meet this definition after purchase may continue to be held in the Fund.
To a limited extent, the Fund may also purchase stocks of companies with
business characteristics and value prospects similar to mid cap companies, but
that may have market capitalizations above the market capitalization of the
largest member of the Russell Midcap® Index. The Fund may invest
in equity securities listed on a national securities exchange or traded in the
over-the-counter markets. The Fund invests primarily in common stocks, but it
may also invest in other types of equity securities, including real estate
investment trusts (“REITs”) and American Depositary Receipts
(“ADRs”).
The
Russell Midcap® Index
measures the performance of the mid cap segment of the U.S. equity universe. The
Russell Midcap® Index is
a subset of the Russell 1000® Index. It includes
approximately 800 of the smallest securities based on a combination of their
market cap and current index membership. The Russell Midcap® Index represents
approximately 24% of the total market capitalization of the Russell 1000® companies as of
March 31, 2024. The companies in the Russell Midcap® Index are considered
representative of mid cap companies. The size of companies in the Russell
Midcap® Index may change
with market conditions. In addition, changes to the composition of the Russell
Midcap® Index can change
the market capitalization range of the companies included in the index. As of
March 31, 2024, the Russell Midcap® Index included securities
issued by companies that ranged in size between $351.9 million and $89 billion.
The Russell Midcap® Value
Index, the Fund’s performance benchmark, measures the performance of those
Russell Midcap companies with lower price-to-book ratios and lower forecasted
growth values.
In
selecting investments for the Fund, the Adviser typically looks to invest in
companies with leading market share positions, shareholder oriented managements,
and strong balance sheet and cash flow ratios. Usually, the shares of the
companies the Adviser buys are selling at a price to earnings ratio below the
average price to earnings ratio of the stocks that comprise the Russell
Midcap® Index. In
addition, the companies selected by the Adviser usually have higher returns on
equity and capital than the average company in the Russell Midcap® Index. The Adviser screens
the Fund’s universe of potential investments to identify potentially undervalued
securities based on factors such as financial strength, earnings valuation, and
earnings quality. The Adviser further narrows the list of potential investments
through traditional fundamental security analysis, which may include interviews
with company management and a review of the assessments and opinions of outside
analysts and consultants. Securities are sold when the Adviser believes the
shares have become relatively overvalued or it finds more attractive
alternatives. The Adviser generally will not sell a security merely due to
market appreciation outside the Fund’s target capitalization range if it
believes the company has valuation upside potential.
PRINCIPAL
RISKS: The Fund’s
returns will vary, and you could lose money by investing in the
Fund. The following is a summary of the principal risks
associated with an investment in the Fund.
The
principal risks of investing in the Fund are:
Equity Funds General Risk. Because the Fund
invests substantially all of its assets in equity securities of U.S. mid cap
value companies, the primary risk is that the value of the equity securities it
holds might decrease in response to the activities of an individual company or
in response to general market, business and economic conditions. If this occurs,
the Fund’s share price may also decrease. In addition, there is the risk that
individual securities may not perform as expected or a strategy used by the
Adviser may fail to produce its intended result.
12
Market Risk. The value of the Fund’s
investments may go up or down, sometimes rapidly or unpredictably. The value of
an investment may decline due to factors affecting securities markets generally
or particular industries represented in the securities markets. The value of an
investment may decline due to general market conditions that are not
specifically related to a particular company, such as real or perceived adverse
economic conditions, recessions, inflation, rapid interest rate changes, changes
in the general outlook for corporate earnings, changes in interest or currency
rates or adverse investor sentiment generally. Events such as war, acts of
terrorism, social unrest, natural disasters, the spread of infectious illness or
other public health threats could also significantly impact the Fund and its
investments. The value of an investment may also decline due to factors that
affect a particular industry or industries, such as labor shortages or increased
production costs and competitive conditions within an industry. During a general
downturn in the securities markets, multiple asset classes may decline in value
simultaneously. Geopolitical and other events may also disrupt securities
markets and adversely affect global economies and markets and thereby decrease
the value of the Fund’s investments.
Mid Cap Company Risk. Stocks of mid cap
companies involve greater risk than those of larger, more established companies.
This is because mid cap companies may be in earlier stages of development, may
be dependent on a small number of products or services, may lack substantial
capital reserves and/or do not have proven track records. Mid cap companies may
be traded in low volumes. This can increase volatility and increase the risk
that the Fund will not be able to sell a security on short notice at a
reasonable price. The securities of mid cap companies may be more volatile and
less liquid than securities of large capitalized companies.
REIT Risk. REITs are pooled investment vehicles
that own, and usually operate, income-producing real estate. REITs are
susceptible to the risks associated with direct ownership of real estate, such
as the following: declines in property values; increases in property taxes,
operating expenses, interest rates or competition; overbuilding; zoning changes;
and losses from casualty or condemnation. REITs typically incur fees that are
separate from those of the Fund. Accordingly, the Fund’s shareholders will
indirectly bear a proportionate share of the REITs’ operating expenses, in
addition to paying Fund expenses. REIT operating expenses are not reflected in
the fee table and example in this Prospectus.
Foreign Investment Risk. The Fund’s investments
in ADRs are subject to foreign securities risk. ADRs are certificates evidencing
ownership of shares of a foreign issuer that are issued by depositary banks and
traded on U.S. exchanges. Although ADRs are alternatives to directly purchasing
the underlying foreign securities in their national markets and currencies, they
continue to be subject to many of the risks associated with investing directly
in foreign securities.
Share Ownership Concentration Risk. To the
extent that a significant portion of the Fund’s shares is held by a limited
number of shareholders or their affiliates, there is a risk that the share
trading activities of these shareholders could disrupt the Fund’s investment
strategies, which could have adverse consequences for the Fund and other
shareholders (e.g., by requiring the Fund to sell investments at inopportune
times or causing the Fund to maintain larger-than-expected cash positions
pending acquisition of investments).
Style Risk. Different investment styles (e.g.,
growth vs. value, quality bias, market capitalization focus) tend to shift in
and out of favor depending on market conditions and investor sentiment, and at
times when the value investment style used by the Adviser for the Fund is out of
favor, the Fund may underperform other equity funds that use different
investment styles.
Focus Risk. To the extent that the Fund focuses
its investments in particular industries, asset classes or sectors of the
economy, any market changes affecting companies in those industries, asset
classes or sectors may impact the Fund’s performance.
Operational and Technology Risk. Cyber-attacks,
disruptions, or failures that affect the Fund’s service providers,
counterparties, market participants, or issuers of securities held by the Fund
may adversely affect the Fund and its shareholders, including by causing losses
for the Fund or impairing Fund operations.
13
The
Fund is not intended to be a complete investment program. The Fund is designed
for long-term investors.
FUND
PERFORMANCE HISTORY: The information below provides some indication of
the risks of investing in the Fund by showing changes in the Fund’s performance
from year to year and by showing how the Fund’s average annual total returns for
the periods indicated compare with those of a broad measure of market
performance and an additional index. The Fund has added the
performance of the Russell 3000® Index, which represents a
broad measure of market performance, to comply with new regulatory requirements.
The table also includes the performance of the Russell Midcap Value Index, which
is generally representative of the market sectors or types of investments in
which the Fund invests. The
Fund’s past performance (before and after taxes) does not necessarily indicate
how it will perform in the future. For more recent performance
information, go to www.williamblairfunds.com or
call 1‑800‑635‑2886.
Annual Total
Returns. The bar chart below provides an illustration of performance of the
Fund’s Class I shares over the past calendar year.
|
|
|
| |
|
|
Highest Quarterly Return
10.92% (4Q23) |
|
Lowest Quarterly Return
(3.60)% (3Q23) |
Average Annual
Total Returns (For the periods ended December 31,
2023). The table below shows returns on a before-tax and
after-tax basis for Class I shares and on a before-tax basis for
Class R6 shares. After-tax returns for Class R6 shares will
vary. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. In some instances, the “Return After Taxes on
Distributions and Sale of Fund Shares” may be greater than the “Return Before
Taxes” because the investor is assumed to be able to use the capital loss on the
sale of Fund shares to offset other taxable capital gains.
Actual after-tax returns depend on an investor’s tax situation and may differ
from those shown. After-tax returns are not relevant to investors
who hold their Fund shares through tax-deferred arrangements, such as 401(k)
plans or individual retirement accounts.
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
|
Since Fund Inception (March 16,
2022) |
|
Class I
Shares |
|
|
|
| |
|
| |
Return
Before Taxes |
|
|
13.21% |
|
|
|
2.82% |
|
Return
After Taxes on Distributions |
|
|
12.81% |
|
|
|
2.48% |
|
Return
After Taxes on Distributions and Sale of Fund Shares |
|
|
8.11% |
|
|
|
2.14% |
|
|
| |
Class R6
Shares |
|
|
|
| |
|
| |
Return
Before Taxes |
|
|
13.14% |
|
|
|
2.87% |
|
|
| |
Russell
3000®
Index (reflects no deduction for fees, expenses or
taxes) |
|
|
25.96% |
|
|
|
6.37% |
|
Russell Midcap
Value Index (reflects no deduction for fees, expenses or
taxes) |
|
|
12.71% |
|
|
|
3.22% |
|
14
MANAGEMENT:
Investment Adviser. William Blair Investment
Management, LLC is the investment adviser of the Fund.
Portfolio Managers. Matthew Fleming and William
V. Heaphy, Associates of the Adviser, co-manage the Fund. Mr. Fleming and
Mr. Heaphy have co-managed the Fund since its inception in 2022.
PURCHASE AND SALE OF FUND SHARES:
Class I Share Purchase. The minimum
initial investment for an account generally is $500,000 (or any lesser amount
if, in William Blair’s opinion, the investor has adequate intent and
availability of funds to reach a future level of investment of $500,000). There
is no minimum for subsequent purchases. There is no minimum initial investment
for qualified retirement plans, including, but not limited to, 401(k) plans, 457
plans, employer-sponsored 403(b) plans, defined benefit plans and other similar
accounts, or plans whereby Class I shares are held through omnibus accounts
(either at the plan level or the level of the plan administrator) and certain
other accounts. William Blair may make certain additional exceptions to the
minimum initial investment amount in its discretion. Class I shares are
only available to certain investors. See “Your Account—Class I Shares” for
additional information on the eligibility requirements and investment minimums
applicable to purchasing Class I shares.
Class R6 Share Purchase. The minimum
initial investment for an account is $1 million (or any lesser amount if,
in William Blair’s opinion, the investor has adequate intent and availability of
funds to reach a future level of investment of $1 million). There is no minimum
for subsequent purchases. There is no minimum initial investment for qualified
retirement plans, including, but not limited to, 401(k) plans, 457 plans,
employer-sponsored 403(b) plans, defined benefit plans and other similar
accounts, or plans whereby Class R6 shares are held through omnibus
accounts (either at the plan level or the level of the plan administrator) and
certain other accounts. William Blair may make certain additional exceptions to
the minimum initial investment amount in its discretion. Class R6 shares
are only available to certain investors. See “Your Account—Class R6 Shares”
for additional information on eligibility requirements and investment minimums
applicable to purchasing Class R6 shares.
Sale. Shares of the Fund are redeemable on any
day the New York Stock Exchange is open for business by mail, wire or telephone,
depending on the elections you make in the account application.
TAX INFORMATION: The Fund intends to make
distributions that may be taxed as ordinary income or capital gains, unless you
are investing through a tax-advantaged investment plan. If you are investing
through a tax-advantaged investment plan, withdrawals from the tax-advantaged
investment plan may be subject to taxes.
PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL
INTERMEDIARIES: If you purchase shares of the Fund through a
broker-dealer or other financial intermediary (such as a bank), the Fund and its
related companies may pay the intermediary for the sale of shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
15
WILLIAM
BLAIR SMALL-MID CAP CORE FUND |
SUMMARY
|
INVESTMENT
OBJECTIVE: The William Blair Small-Mid Cap Core Fund seeks long-term capital
appreciation.
FEES AND
EXPENSES: This table describes the fees and expenses that you may pay if you
buy, hold and sell shares of the Fund. You may pay other fees, such as brokerage
commissions and other fees to financial intermediaries, which are not reflected
in the tables and examples below.
Shareholder Fees (fees paid directly from your
investment):
|
|
|
|
|
|
|
| |
|
|
Class I |
|
|
Class R6 |
|
Maximum
Sales Charge (Load) Imposed on Purchases |
|
|
None |
|
|
|
None |
|
Redemption
Fee |
|
|
None |
|
|
|
None |
|
Annual Fund Operating Expenses (expenses that
you pay each year as a percentage of the value of your investment):
|
|
|
|
|
|
|
| |
|
|
Class I |
|
|
Class R6 |
|
Management
Fee |
|
|
0.90% |
|
|
|
0.90% |
|
Distribution
(Rule 12b-1) Fee |
|
|
None |
|
|
|
None |
|
Other
Expenses |
|
|
0.26% |
|
|
|
0.11% |
|
| |
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
1.16% |
|
|
|
1.01% |
|
Fee
Waiver and/or Expense Reimbursement* |
|
|
0.21% |
|
|
|
0.11% |
|
| |
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
|
|
0.95% |
|
|
|
0.90% |
|
* |
William
Blair Investment Management, LLC (the “Adviser”) has entered into a
contractual agreement with the Fund to waive fees and/or reimburse
expenses in order to limit the Fund’s operating expenses (excluding
interest expenses, taxes, brokerage commissions, acquired fund fees and
expenses, dividend and interest expenses on short sales, other
investment-related costs and extraordinary expenses, such as litigation
and other expenses not incurred in the ordinary course of the Fund’s
business) to 0.95% and 0.90% of average daily net assets for Class I
and Class R6 shares, respectively, until April 30, 2025. The
Adviser may not terminate this arrangement prior to April 30, 2025 without
the approval of the Fund’s Board of Trustees.
|
Example: This example is intended to help you compare the cost of investing
in shares of the Fund with the cost of investing in other mutual funds. The
example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
example also assumes that your investment has a 5% return each year and the
Fund’s operating expenses remain the same. The figures reflect the expense
limitation for the first year. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
Class I |
|
$97 |
|
$343 |
|
$609 |
|
$1,369 |
Class R6 |
|
92 |
|
308 |
|
543 |
|
1,216 |
Portfolio
Turnover: The Fund pays transaction costs, such as commissions, when it buys
and sells securities (or “turns over” its portfolio). A higher portfolio
turnover may indicate higher transaction costs and may result in higher taxes
when Fund shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example, affect the Fund’s
performance. During the most recent fiscal year, the Fund’s portfolio turnover
rate was 41% of the average value of its
portfolio.
16
PRINCIPAL INVESTMENT
STRATEGIES: Under normal
circumstances, the Fund invests at least 80% of its net assets (plus the amount
of any borrowings for investment purposes) in equity securities of small
capitalized (“small cap”) and medium capitalized (“mid cap”) companies. The Fund
invests in a diversified portfolio of equity securities, primarily common
stocks, of small cap and mid cap U.S. companies that the Adviser deems to be of
high quality but undervalued by the marketplace. For purposes of the Fund, the
Adviser considers a company to be a small cap or a mid cap company if it has a
market capitalization no larger than the largest capitalized company included in
the Russell Midcap® Index
at the time of the Fund’s investment. Securities of companies whose market
capitalizations no longer meet this definition after purchase may continue to be
held in the Fund. To a limited extent, the Fund may also purchase stocks of
companies with business characteristics similar to small cap and mid cap
companies, but that may have market capitalizations above the market
capitalization of the largest member of the Russell Midcap® Index.
The
Russell Midcap® Index
measures the performance of the 800 companies with the lowest market
capitalizations in the Russell 1000® Index. The size of companies
in the Russell Midcap®
Index may change with market conditions. In addition, changes to the composition
of the Russell Midcap®
Index can change the market capitalization range of companies included in the
index. As of March 31, 2024, the Russell Midcap® Index included securities
issued by companies that ranged in size between $351.9 million and $89 billion.
The Russell 2500TM
Index, the Fund’s performance benchmark, measures the performance of the 2,500
smallest companies in the Russell 3000® Index with a weighted
average market capitalization of approximately $8.4 billion, median
capitalization of $1.5 billion and market capitalization of the largest company
at $59.1 billion as of March 31, 2024.
In
choosing investments, the Adviser performs fundamental company analysis and
focuses on stock selection. The Adviser evaluates the extent to which a company
meets the criteria set forth below. All of the criteria are evaluated relative
to the valuation of the security. The weight given to a particular investment
criterion will depend upon the circumstances, and Fund holdings may not meet all
of the following criteria: (a) the company should be, or should have the
expectation of becoming, a significant provider in the primary markets it
serves; (b) the company should have some distinctive attribute relative to
present or potential competitors (this may, for example, take the form of
proprietary products or processes, a unique distribution system, an entrenched
brand name or an especially strong financial position relative to its
competition); and (c) the company should have a strong management team.
PRINCIPAL
RISKS: The Fund’s
returns will vary, and you could lose money by investing in the
Fund. The following is a summary of the principal risks
associated with an investment in the Fund.
Equity Funds General Risk. Because the Fund
invests substantially all of its assets in equity securities of small cap and
mid cap U.S. companies, the primary risk is that the value of the equity
securities it holds might decrease in response to the activities of an
individual company or in response to general market, business and economic
conditions. If this occurs, the Fund’s share price may also decrease. In
addition, there is the risk that individual securities may not perform as
expected or a strategy used by the Adviser may fail to produce its intended
result.
Market Risk. The value of the Fund’s
investments may go up or down, sometimes rapidly or unpredictably. The value of
an investment may decline due to factors affecting securities markets generally
or particular industries represented in the securities markets. The value of an
investment may decline due to general market conditions that are not
specifically related to a particular company, such as real or perceived adverse
economic conditions, recessions, inflation, rapid interest rate changes, changes
in the general outlook for corporate earnings, changes in interest or currency
rates or adverse investor sentiment generally. Events such as war, acts of
terrorism, social unrest, natural disasters, the spread of infectious illness or
other public health threats could also significantly impact the Fund and its
investments. The value of an investment may also decline due to factors that
affect a particular industry or industries, such as labor shortages or increased
production costs and competitive conditions within an industry. During a general
downturn in the securities markets, multiple asset
17
classes
may decline in value simultaneously. Geopolitical and other events may also
disrupt securities markets and adversely affect global economies and markets and
thereby decrease the value of the Fund’s investments.
Small and Mid Cap Company Risk. Stocks of small
and mid cap companies involve greater risk than those of larger, more
established companies. This is because small and mid cap companies may be in
earlier stages of development, may be dependent on a small number of products or
services, may lack substantial capital reserves and/or do not have proven track
records. Small and mid cap companies may be traded in low volumes. This can
increase volatility and increase the risk that the Fund will not be able to sell
a security on short notice at a reasonable price. The securities of small and
mid cap companies may be more volatile and less liquid than securities of large
capitalized companies.
Share Ownership Concentration Risk. To the
extent that a significant portion of the Fund’s shares is held by a limited
number of shareholders or their affiliates, there is a risk that the share
trading activities of these shareholders could disrupt the Fund’s investment
strategies, which could have adverse consequences for the Fund and other
shareholders (e.g., by requiring the Fund to sell investments at inopportune
times or causing the Fund to maintain larger-than-expected cash positions
pending acquisition of investments).
Style Risk. Different investment styles (e.g.,
growth vs. value, quality bias, market capitalization focus) tend to shift in
and out of favor depending on market conditions and investor sentiment, and at
times when the investment style used by the Adviser for the Fund is out of
favor, the Fund may underperform other equity funds that use different
investment styles.
Focus Risk. To the extent that the Fund focuses
its investments in particular industries, asset classes or sectors of the
economy, any market changes affecting companies in those industries, asset
classes or sectors may impact the Fund’s performance.
Operational and Technology Risk. Cyber-attacks,
disruptions, or failures that affect the Fund’s service providers,
counterparties, market participants, or issuers of securities held by the Fund
may adversely affect the Fund and its shareholders, including by causing losses
for the Fund or impairing Fund operations.
The
Fund is not intended to be a complete investment program and is designed for
long-term investors.
FUND
PERFORMANCE HISTORY: The information below provides some indication of
the risks of investing in the Fund by showing changes in the Fund’s performance
from year to year and by showing how the Fund’s average annual total returns for
the periods indicated compare with those of a broad measure of market
performance and an additional index. The Fund has added the
performance of the Russell 3000® Index, which represents a
broad measure of market performance, to comply with new regulatory requirements.
The table also includes the performance of the Russell 2500TM Index, which is generally
representative of the market sectors or types of investments in which the Fund
invests. The
Fund’s past performance (before and after taxes) does not necessarily indicate
how it will perform in the future. For more recent performance
information, go to www.williamblairfunds.com or
call 1‑800‑635‑2886.
Annual Total
Returns. The bar chart below provides an illustration of how the Fund’s
performance has varied in each of the calendar years since the Fund started for
Class I shares.
|
|
|
| |
|
|
Highest Quarterly Return
28.67% (4Q20) |
|
Lowest Quarterly Return
(26.97)% (1Q20) |
18
Average Annual
Total Returns (For the periods ended December 31,
2023). The table below shows returns on a before-tax and
after-tax basis for Class I shares and on a before-tax basis for
Class R6 shares. After-tax returns for Class R6 shares will
vary. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. In some instances, the “Return After Taxes on
Distributions and Sale of Fund Shares” may be greater than the “Return Before
Taxes” because the investor is assumed to be able to use the capital loss on the
sale of Fund shares to offset other taxable capital gains.
Actual after-tax returns depend on an investor’s tax situation and may differ
from those shown. After-tax returns are not relevant to investors
who hold their Fund shares through tax-deferred arrangements, such as 401(k)
plans or individual retirement accounts.
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
|
Since Fund Inception (October 1,
2019) |
|
Class I
Shares |
|
|
|
| |
|
| |
Return
Before Taxes |
|
|
13.26% |
|
|
|
10.56% |
|
Return
After Taxes on Distributions |
|
|
13.22% |
|
|
|
10.54% |
|
Return
After Taxes on Distributions and Sale of Fund Shares |
|
|
7.88% |
|
|
|
8.33% |
|
|
| |
Class R6
Shares |
|
|
|
| |
|
| |
Return
Before Taxes |
|
|
13.30% |
|
|
|
10.59% |
|
|
| |
Russell
3000®
Index (reflects no deduction for fees, expenses or
taxes) |
|
|
25.96% |
|
|
|
13.44% |
|
Russell
2500TM
Index (reflects no deduction for fees, expenses or
taxes) |
|
|
17.42% |
|
|
|
9.57% |
|
MANAGEMENT:
Investment Adviser. William Blair Investment
Management, LLC is the investment adviser of the Fund.
Portfolio Managers. Daniel Crowe and Ward
Sexton, Partners of the Adviser, co-manage the Fund. Mr. Crowe and
Mr. Sexton have co-managed the Fund since its inception in 2019.
PURCHASE AND SALE OF FUND SHARES:
Class I Share Purchase. The minimum
initial investment for an account generally is $500,000 (or any lesser amount
if, in William Blair’s opinion, the investor has adequate intent and
availability of funds to reach a future level of investment of $500,000). There
is no minimum for subsequent purchases. There is no minimum initial investment
for qualified retirement plans, including, but not limited to, 401(k) plans, 457
plans, employer-sponsored 403(b) plans, defined benefit plans and other similar
accounts, or plans whereby Class I shares are held through omnibus accounts
(either at the plan level or the level of the plan administrator) and certain
other accounts. William Blair may make certain additional exceptions to the
minimum initial investment amount in its discretion. Class I shares are
only available to certain investors. See “Your Account—Class I Shares” for
additional information on the eligibility requirements and investment minimums
applicable to purchasing Class I shares.
Class R6 Share Purchase. The minimum
initial investment for an account is $1 million (or any lesser amount if,
in William Blair’s opinion, the investor has adequate intent and availability of
funds to reach a future level of investment of $1 million). There is no minimum
for subsequent purchases. There is no minimum initial investment for qualified
retirement plans, including, but not limited to, 401(k) plans, 457 plans,
employer-sponsored 403(b) plans, defined benefit plans and other similar
accounts, or plans whereby Class R6 shares are held through omnibus
accounts (either at the plan level or the level of the plan administrator) and
certain other
19
accounts.
William Blair may make certain additional exceptions to the minimum initial
investment amount in its discretion. Class R6 shares are only available to
certain investors. See “Your Account—Class R6 Shares” for additional
information on eligibility requirements and investment minimums applicable to
purchasing Class R6 shares.
Sale. Shares of the Fund are redeemable on any
day the New York Stock Exchange is open for business by mail, wire or telephone,
depending on the elections you make in the account application.
TAX INFORMATION: The Fund intends to make
distributions that may be taxed as ordinary income or capital gains, unless you
are investing through a tax-advantaged investment plan. If you are investing
through a tax-advantaged investment plan, withdrawals from the tax-advantaged
investment plan may be subject to taxes.
PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL
INTERMEDIARIES: If you purchase shares of the Fund through a
broker-dealer or other financial intermediary (such as a bank), the Fund and its
related companies may pay the intermediary for the sale of shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
20
|
|
|
| |
WILLIAM BLAIR SMALL-MID CAP GROWTH
FUND |
|
|
SUMMARY |
|
INVESTMENT
OBJECTIVE: The William Blair Small-Mid Cap
Growth Fund seeks long-term capital appreciation.
FEES AND
EXPENSES: This table describes the fees and
expenses that you may pay if you buy, hold and sell shares of the Fund. You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples
below.
Shareholder Fees (fees paid directly from your
investment):
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
Class I |
|
|
Class R6 |
|
Maximum
Sales Charge (Load) Imposed on Purchases |
|
|
None |
|
|
|
None |
|
|
|
None |
|
Redemption
Fee |
|
|
None |
|
|
|
None |
|
|
|
None |
|
Annual Fund Operating Expenses (expenses that
you pay each year as a percentage of the value of your investment):
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
Class I |
|
|
Class R6 |
|
Management
Fee* |
|
|
0.94% |
|
|
|
0.94% |
|
|
|
0.94% |
|
Distribution
(Rule 12b-1) Fee |
|
|
0.25% |
|
|
|
None |
|
|
|
None |
|
Other
Expenses |
|
|
0.18% |
|
|
|
0.18% |
|
|
|
0.05% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
1.37% |
|
|
|
1.12% |
|
|
|
0.99% |
|
Fee
Waiver and/or Expense Reimbursement** |
|
|
0.13% |
|
|
|
0.13% |
|
|
|
0.05% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement*** |
|
|
1.24% |
|
|
|
0.99% |
|
|
|
0.94% |
|
* |
The Management Fee has been restated to
reflect a reduction to 0.94% of average daily net assets effective
May 1, 2023. |
** |
William
Blair Investment Management, LLC (the “Adviser”) has entered into a
contractual agreement with the Fund to waive fees and/or reimburse
expenses in order to limit the Fund’s operating expenses (excluding
interest expenses, taxes, brokerage commissions, acquired fund fees and
expenses, dividend and interest expenses on short sales, other
investment-related costs and extraordinary expenses, such as litigation
and other expenses not incurred in the ordinary course of the Fund’s
business) to 1.24%, 0.99% and 0.94% of average daily net assets for
Class N, Class I and Class R6 shares, respectively, until
April 30, 2025. The Adviser may not terminate this arrangement prior
to April 30, 2025 without
the approval of the Fund’s Board of
Trustees. |
*** |
The
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement does not equal the net expense ratio to average daily net
assets in the Financial Highlights section of this Prospectus as a result
of a change in the management fee and contractual expense
limits. |
Example: This example is intended to help you compare the cost of investing
in shares of the Fund with the cost of investing in other mutual funds. The
example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
example also assumes that your investment has a 5% return each year and the
Fund’s operating expenses remain the same. The figures reflect the expense
limitation for the first year. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
Class N |
|
$126 |
|
$421 |
|
$738 |
|
$1,635 |
Class I |
|
101 |
|
343 |
|
604 |
|
1,352 |
Class R6 |
|
96 |
|
310 |
|
542 |
|
1,208 |
21
Portfolio
Turnover: The Fund pays transaction costs, such as commissions, when it buys
and sells securities (or “turns over” its portfolio). A higher portfolio
turnover may indicate higher transaction costs and may result in higher taxes
when Fund shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example, affect the Fund’s
performance. During the most recent fiscal year, the Fund’s portfolio turnover
rate was 49% of the average value of its
portfolio.
PRINCIPAL INVESTMENT
STRATEGIES: Under normal market
conditions, the Fund invests at least 80% of its net assets (plus the amount of
any borrowings for investment purposes) in stocks of small capitalized (“small
cap”) and medium capitalized (“mid cap”) companies. The Fund invests primarily
in a diversified portfolio of equity securities, including common stocks and
other forms of equity investments (e.g., securities convertible into common
stocks), of small cap and mid cap U.S. growth companies that are expected to
exhibit quality growth characteristics. For purposes of the Fund, the Adviser
considers a company to be a small cap or mid cap company if it has a market
capitalization no larger than the largest capitalized company included in the
Russell Midcap® Index at the time of
the Fund’s investment. Securities of companies whose market capitalizations no
longer meet this definition after purchase may continue to be held in the Fund.
To a limited extent, the Fund may also purchase stocks of companies with
business characteristics and growth prospects similar to small cap and mid cap
companies, but that may have market capitalizations above the market
capitalization of the largest member of the Russell Midcap® Index.
The
Russell Midcap® Index
measures the performance of the 800 companies with the lowest market
capitalizations in the Russell 1000® Index. The size of companies
in the Russell Midcap®
Index may change with market conditions. In addition, changes to the composition
of the Russell Midcap®
Index can change the market capitalization range of companies included in the
index. As of March 31, 2024, the Russell Midcap® Index included securities
issued by companies that ranged in size between $351.9 million and $89 billion.
The Russell 2500TM
Growth Index, the Fund’s performance benchmark, measures the performance of
those Russell 2500TM
companies with higher price-to-book ratios and higher forecasted growth values.
The Russell 2500TM
Index measures the performance of the 2,500 smallest companies in the Russell
3000® Index with a
weighted average market capitalization of approximately $8.4 billion, median
capitalization of $1.5 billion and market capitalization of the largest company
at $59.1 billion as of March 31, 2024.
In
choosing investments, the Adviser performs fundamental company analysis and
focuses on stock selection. The Adviser evaluates the extent to which a company
meets the quality growth criteria set forth below. All of the criteria are
evaluated relative to the valuation of the security. The weight given to a
particular investment criterion will depend upon the circumstances, and Fund
holdings may not meet all of the following criteria: (a) the company should
be, or should have the expectation of becoming, a significant provider in the
primary markets it serves, (b) the company should have some distinctive
attribute relative to present or potential competitors (for example, this may
take the form of proprietary products or processes, a unique distribution
system, an entrenched brand name or an especially strong financial position
relative to its competition), (c) the company should participate in an
industry expected to grow rapidly due to economic factors or technological
change or should grow through market share gains in its industry and
(d) the company should have a strong management
team.
PRINCIPAL
RISKS: The Fund’s
returns will vary, and you could lose money by investing in the
Fund. The following is a summary of the principal risks
associated with an investment in the Fund.
Equity Funds General Risk. Because the Fund
invests substantially all of its assets in equity securities of small cap and
mid cap U.S. growth companies, the primary risk is that the value of the equity
securities it holds might decrease in response to the activities of an
individual company or in response to general market, business and economic
conditions. If this occurs, the Fund’s share price may also decrease. In
addition, there is the risk that individual securities may not perform as
expected or a strategy used by the Adviser may fail to produce its intended
result.
22
Market Risk. The value of the Fund’s
investments may go up or down, sometimes rapidly or unpredictably. The value of
an investment may decline due to factors affecting securities markets generally
or particular industries represented in the securities markets. The value of an
investment may decline due to general market conditions that are not
specifically related to a particular company, such as real or perceived adverse
economic conditions, recessions, inflation, rapid interest rate changes, changes
in the general outlook for corporate earnings, changes in interest or currency
rates or adverse investor sentiment generally. Events such as war, acts of
terrorism, social unrest, natural disasters, the spread of infectious illness or
other public health threats could also significantly impact the Fund and its
investments. The value of an investment may also decline due to factors that
affect a particular industry or industries, such as labor shortages or increased
production costs and competitive conditions within an industry. During a general
downturn in the securities markets, multiple asset classes may decline in value
simultaneously. Geopolitical and other events may also disrupt securities
markets and adversely affect global economies and markets and thereby decrease
the value of the Fund’s investments.
Small and Mid Cap Company Risk. Stocks of small
and mid cap companies involve greater risk than those of larger, more
established companies. This is because small and mid cap companies may be in
earlier stages of development, may be dependent on a small number of products or
services, may lack substantial capital reserves and/or do not have proven track
records. Small and mid cap companies may be traded in low volumes. This can
increase volatility and increase the risk that the Fund will not be able to sell
a security on short notice at a reasonable price. The securities of small and
mid cap companies may be more volatile and less liquid than securities of large
capitalized companies.
Share Ownership Concentration Risk. To the
extent that a significant portion of the Fund’s shares is held by a limited
number of shareholders or their affiliates, there is a risk that the share
trading activities of these shareholders could disrupt the Fund’s investment
strategies, which could have adverse consequences for the Fund and other
shareholders (e.g., by requiring the Fund to sell investments at inopportune
times or causing the Fund to maintain larger-than-expected cash positions
pending acquisition of investments).
Style Risk. Different investment styles (e.g.,
growth vs. value, quality bias, market capitalization focus) tend to shift in
and out of favor depending on market conditions and investor sentiment, and at
times when the growth investment style used by the Adviser for the Fund is out
of favor, the Fund may underperform other equity funds that use different
investment styles.
Focus Risk. To the extent that the Fund focuses
its investments in particular industries, asset classes or sectors of the
economy, any market changes affecting companies in those industries, asset
classes or sectors may impact the Fund’s performance.
Operational and Technology Risk. Cyber-attacks,
disruptions, or failures that affect the Fund’s service providers,
counterparties, market participants, or issuers of securities held by the Fund
may adversely affect the Fund and its shareholders, including by causing losses
for the Fund or impairing Fund operations.
The
Fund is not intended to be a complete investment program. The Fund is designed
for long-term investors.
The Fund involves a high level of risk and may not be
appropriate for everyone. You should only consider it for the aggressive
portion of your portfolio.
FUND
PERFORMANCE HISTORY: The information below provides some indication of
the risks of investing in the Fund by showing changes in the Fund’s performance
from year to year and by showing how the Fund’s average annual total returns for
the periods indicated compare with those of a broad measure of market
performance and an additional index. The Fund has added the
performance of the Russell 3000® Index, which represents a
broad measure of market performance, to comply with new regulatory requirements.
The table also includes the performance of the Russell 2500TM Index, which is generally
representative of the market sectors or types of investments in which the Fund
invests. The Fund’s past
performance (before and after taxes) does
not
23
necessarily indicate how it will
perform in the future. For more recent performance
information, go to www.williamblairfunds.com or
call 1‑800‑635‑2886.
Annual Total
Returns. The bar chart below provides an illustration of how the Fund’s
performance has varied in each of the last ten calendar years for Class N
shares.
|
|
|
| |
|
|
Highest Quarterly
Return
26.45% (2Q20) |
|
Lowest Quarterly
Return
(21.07)% (2Q22) |
Average Annual
Total Returns (For the periods ended December 31, 2023). The table below shows returns on a before-tax and
after-tax basis for Class N shares and on a before-tax basis for
Class I and Class R6 shares. After-tax returns for Class I and
Class R6 shares will vary. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. In some instances, the “Return After Taxes on
Distributions and Sale of Fund Shares” may be greater than the “Return Before
Taxes” because the investor is assumed to be able to use the capital loss on the
sale of Fund shares to offset other taxable capital gains.
Actual after-tax returns depend on an investor’s tax situation and may differ
from those shown. After-tax returns are not relevant to investors
who hold their Fund shares through tax-deferred arrangements, such as 401(k)
plans or individual retirement
accounts.
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Class N
Shares |
|
|
|
| |
|
|
| |
|
| |
Return
Before Taxes |
|
|
17.64% |
|
|
|
11.02% |
|
|
|
9.82% |
|
Return
After Taxes on Distributions |
|
|
15.39% |
|
|
|
9.38% |
|
|
|
8.24% |
|
Return
After Taxes on Distributions and Sale of Fund Shares |
|
|
12.01% |
|
|
|
8.64% |
|
|
|
7.72% |
|
|
|
| |
Class I
Shares |
|
|
|
| |
|
|
| |
|
| |
Return
Before Taxes |
|
|
17.93% |
|
|
|
11.30% |
|
|
|
10.10% |
|
|
|
| |
Russell
3000®
Index (reflects no deduction for fees, expenses or
taxes) |
|
|
25.96% |
|
|
|
15.16% |
|
|
|
11.48% |
|
Russell
2500TM Growth
Index (reflects no deduction for fees, expenses or
taxes) |
|
|
18.93% |
|
|
|
11.43% |
|
|
|
8.78% |
|
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
|
Since Share Class Inception (May 2,
2019) |
|
Class R6
Shares |
|
|
|
| |
|
| |
Return
Before Taxes |
|
|
17.95% |
|
|
|
7.73% |
|
|
| |
Russell
3000® Index
(reflects no deduction for fees, expenses or taxes) |
|
|
25.96% |
|
|
|
12.39% |
|
Russell
2500TM Growth
Index (reflects no deduction for fees, expenses or
taxes) |
|
|
18.93% |
|
|
|
7.65% |
|
24
MANAGEMENT:
Investment Adviser. William Blair Investment
Management, LLC is the investment adviser of the Fund.
Portfolio Managers. Daniel Crowe and Nicholas
Zimmerman, Partners of the Adviser, co-manage the Fund. Mr. Crowe has
co-managed the Fund since 2015. Mr. Zimmerman has co-managed the Fund since
2023.
PURCHASE
AND SALE OF FUND SHARES:
Class N Share Purchase. The minimum
initial investment for an account generally is $2,500. The minimum subsequent
investment generally is $1,000. Certain exceptions to the minimum initial and
subsequent investment amounts may apply. See “Your Account—Class N Shares”
for additional information on eligibility requirements applicable to purchasing
Class N shares.
Class I Share Purchase. The minimum
initial investment for an account generally is $500,000 (or any lesser amount
if, in William Blair’s opinion, the investor has adequate intent and
availability of funds to reach a future level of investment of $500,000). There
is no minimum for subsequent purchases. There is no minimum initial investment
for qualified retirement plans, including, but not limited to, 401(k) plans, 457
plans, employer-sponsored 403(b) plans, defined benefit plans and other similar
accounts, or plans whereby Class I shares are held through omnibus accounts
(either at the plan level or the level of the plan administrator) and certain
other accounts. William Blair may make certain additional exceptions to the
minimum initial investment amount in its discretion. Class I shares are
only available to certain investors. See “Your Account—Class I Shares” for
additional information on the eligibility requirements and investment minimums
applicable to purchasing Class I shares.
Class R6 Share Purchase. The minimum
initial investment for an account is $1 million (or any lesser amount if,
in William Blair’s opinion, the investor has adequate intent and availability of
funds to reach a future level of investment of $1 million). There is no minimum
for subsequent purchases. There is no minimum initial investment for qualified
retirement plans, including, but not limited to, 401(k) plans, 457 plans,
employer-sponsored 403(b) plans, defined benefit plans and other similar
accounts, or plans whereby Class R6 shares are held through omnibus
accounts (either at the plan level or the level of the plan administrator) and
certain other accounts. William Blair may make certain additional exceptions to
the minimum initial investment amount in its discretion. Class R6 shares
are only available to certain investors. See “Your Account—Class R6 Shares”
for additional information on eligibility requirements and investment minimums
applicable to purchasing Class R6 shares.
Sale. Shares of the Fund are redeemable on any
day the New York Stock Exchange is open for business by mail, wire or telephone,
depending on the elections you make in the account application.
TAX INFORMATION: The Fund intends to make
distributions that may be taxed as ordinary income or capital gains, unless you
are investing through a tax-advantaged investment plan. If you are investing
through a tax-advantaged investment plan, withdrawals from the tax-advantaged
investment plan may be subject to taxes.
PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL
INTERMEDIARIES: If you purchase shares of the Fund through a
broker-dealer or other financial intermediary (such as a bank), the Fund and its
related companies may pay the intermediary for the sale of shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
25
|
|
|
| |
WILLIAM BLAIR SMALL-MID CAP VALUE FUND |
|
|
SUMMARY |
|
INVESTMENT
OBJECTIVE: The William Blair Small-Mid Cap
Value Fund seeks long-term capital appreciation.
FEES AND
EXPENSES: This table describes the fees and
expenses that you may pay if you buy, hold and sell shares of the Fund. You may
pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples
below.
Shareholder Fees (fees paid directly from your
investment):
|
|
|
|
|
|
|
| |
|
|
Class I |
|
|
Class R6 |
|
Maximum
Sales Charge (Load) Imposed on Purchases |
|
|
None |
|
|
|
None |
|
Redemption
Fee |
|
|
None |
|
|
|
None |
|
Annual Fund Operating Expenses (expenses that
you pay each year as a percentage of the value of your investment):
|
|
|
|
|
|
|
| |
|
|
Class I |
|
|
Class R6 |
|
Management
Fee |
|
|
0.80% |
|
|
|
0.80% |
|
Distribution
(Rule 12b-1) Fee |
|
|
None |
|
|
|
None |
|
Other
Expenses |
|
|
9.89% |
|
|
|
9.86% |
|
| |
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
10.69% |
|
|
|
10.66% |
|
Fee
Waiver and/or Expense Reimbursement* |
|
|
9.84% |
|
|
|
9.86% |
|
| |
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
|
|
0.85% |
|
|
|
0.80% |
|
* |
William
Blair Investment Management, LLC (the “Adviser”) has entered into a
contractual agreement with the Fund to waive fees and/or reimburse
expenses in order to limit the Fund’s operating expenses (excluding
interest expenses, taxes, brokerage commissions, acquired fund fees and
expenses, dividend and interest expenses on short sales, other
investment-related costs and extraordinary expenses, such as litigation
and other expenses not incurred in the ordinary course of the Fund’s
business) to 0.85% and 0.80% of average daily net assets for Class I and
Class R6 shares, respectively, until April 30, 2025. The Adviser may
not terminate this contractual agreement prior to April 30, 2025 without
the approval of the Fund’s Board of Trustees. The Adviser is entitled to
recoupment of previously waived fees and reimbursed expenses for a period
of three years subsequent to the Fund’s commencement of operations (i.e.
August 17, 2026) to the extent that such recoupment does not cause
the annual Fund operating expenses (after the recoupment is taken into
account) to exceed both (1) the expense limit in place when such
amounts were waived or reimbursed and (2) the Fund’s current expense
limitation. |
Example: This example is intended to help you compare the cost of investing
in shares of the Fund with the cost of investing in other mutual funds. The
example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
example also assumes that your investment has a 5% return each year and the
Fund’s operating expenses remain the same. The figures reflect the expense
limitation for the first two years. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
Class I |
|
$87 |
|
$2,189 |
|
$4,058 |
|
$7,877 |
Class R6 |
|
82 |
|
2,179 |
|
4,046 |
|
7,864 |
26
Portfolio
Turnover: The Fund pays transaction costs, such as commissions, when it buys
and sells securities (or “turns over” its portfolio). A higher portfolio
turnover may indicate higher transaction costs and may result in higher taxes
when Fund shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example, affect the Fund’s
performance. During the period August 17, 2023 (commencement of operations)
through December 31, 2023, the Fund’s portfolio turnover rate was
33% of the average value of its
portfolio.
PRINCIPAL INVESTMENT
STRATEGIES: Under normal
circumstances, the Fund invests at least 80% of its net assets (plus the amount
of any borrowings for investment purposes) in equity securities of small
capitalized (“small cap”) and medium capitalized (“mid cap”) companies. For
purposes of the Fund, the Adviser considers a company to be a small cap or mid
cap company if it has a market capitalization no larger than the largest
capitalized company included in the Russell Midcap® Index at the time of the
Fund’s investment. Securities of companies whose market capitalizations no
longer meet this definition after purchase may continue to be held in the Fund.
To a limited extent, the Fund may also purchase stocks of companies with
business characteristics and value prospects similar to small to mid cap
companies, but that may have market capitalizations above the market
capitalization of the largest member of the Russell Midcap® Index. The Fund may invest
in equity securities listed on a national securities exchange or traded in the
over-the-counter markets. The Fund invests primarily in common stocks, but it
may also invest in other types of equity securities, including real estate
investment trusts (“REITs”) and American Depositary Receipts
(“ADRs”).
The
Russell Midcap® Index
measures the performance of the 800 companies with the lowest market
capitalizations in the Russell 1000® Index. The size of companies
in the Russell Midcap®
Index may change with market conditions. In addition, changes to the composition
of the Russell Midcap®
Index can change the market capitalization range of companies included in the
index. As of March 31, 2024, , the Russell Midcap® Index included securities
issued by companies that ranged in size between $351.9 million and $89 billion.
The Russell 2500TM
Value Index, the Fund’s performance benchmark, measures the performance of those
Russell 2500TM
companies with lower price-to-book ratios and lower forecasted growth values.
In
selecting investments for the Fund, the Adviser typically looks to invest in
companies with leading market share positions, shareholder-oriented managements,
and strong balance sheet and cash flow ratios. Usually, the shares of the
companies the Adviser buys are selling at a price to earnings ratio below the
average price to earnings ratio of the stocks that comprise the Russell 2500TM Value Index. In addition,
the companies selected by the Adviser usually have higher returns on equity and
capital than the average company in the Russell 2500TM Value Index. The Adviser
screens the Fund’s universe of potential investments to identify potentially
undervalued securities based on factors such as financial strength, earnings
valuation and earnings quality. The Adviser further narrows the list of
potential investments through traditional fundamental security analysis, which
may include interviews with company management and a review of the assessments
and opinions of outside analysts and consultants. Securities are sold when the
Adviser believes the shares have become relatively overvalued or it finds more
attractive alternatives. The Adviser generally will not sell a security merely
due to market appreciation outside the Fund’s target capitalization range if it
believes the company has valuation upside potential.
PRINCIPAL
RISKS: The Fund’s
returns will vary, and you could lose money by investing in the
Fund. The following is a summary of the principal risks
associated with an investment in the Fund.
Equity Funds General Risk. Because the Fund
invests substantially all of its assets in equity securities of small cap and
mid cap U.S. companies, the primary risk is that the value of the equity
securities it holds might decrease in response to the activities of an
individual company or in response to general market, business and economic
conditions. If this occurs, the Fund’s share price may also decrease. In
addition, there is the risk that individual securities may not perform as
expected or a strategy used by the Adviser may fail to produce its intended
result.
27
Market Risk. The value of the Fund’s
investments may go up or down, sometimes rapidly or unpredictably. The value of
an investment may decline due to factors affecting securities markets generally
or particular industries represented in the securities markets. The value of an
investment may decline due to general market conditions that are not
specifically related to a particular company, such as real or perceived adverse
economic conditions, recessions, inflation, rapid interest rate changes, changes
in the general outlook for corporate earnings, changes in interest or currency
rates or adverse investor sentiment generally. Events such as war, acts of
terrorism, social unrest, natural disasters, the spread of infectious illness or
other public health threats could also significantly impact the Fund and its
investments. The value of an investment may also decline due to factors that
affect a particular industry or industries, such as labor shortages or increased
production costs and competitive conditions within an industry. During a general
downturn in the securities markets, multiple asset classes may decline in value
simultaneously. Geopolitical and other events may also disrupt securities
markets and adversely affect global economies and markets and thereby decrease
the value of the Fund’s investments.
Small and Mid Cap Company Risk. Stocks of small
and mid cap companies involve greater risk than those of larger, more
established companies. This is because small and mid cap companies may be in
earlier stages of development, may be dependent on a small number of products or
services, may lack substantial capital reserves and/or do not have proven track
records. Small and mid cap companies may be traded in low volumes. This can
increase volatility and increase the risk that the Fund will not be able to sell
a security on short notice at a reasonable price. The securities of small and
mid cap companies may be more volatile and less liquid than securities of large
capitalized companies.
REIT Risk. REITs are pooled investment vehicles
that own, and usually operate, income-producing real estate. REITs are
susceptible to the risks associated with direct ownership of real estate, such
as the following: declines in property values; increases in property taxes,
operating expenses, interest rates or competition; overbuilding; zoning changes;
and losses from casualty or condemnation. REITs typically incur fees that are
separate from those of the Fund. Accordingly, the Fund’s shareholders will
indirectly bear a proportionate share of the REITs’ operating expenses, in
addition to paying Fund expenses. REIT operating expenses are not reflected in
the fee table and example in this Prospectus.
Foreign Investment Risk. The Fund’s investments
in ADRs are subject to foreign securities risk. ADRs are certificates evidencing
ownership of shares of a foreign issuer that are issued by depositary banks and
traded on U.S. exchanges. Although ADRs are alternatives to directly purchasing
the underlying foreign securities in their national markets and currencies, they
continue to be subject to many of the risks associated with investing directly
in foreign securities.
New Fund Risk. As a new fund, there can be no
assurance that the Fund will grow to or maintain an economically viable size, in
which case it could ultimately liquidate.
Share Ownership Concentration Risk. To the
extent that a significant portion of the Fund’s shares is held by a limited
number of shareholders or their affiliates, there is a risk that the share
trading activities of these shareholders could disrupt the Fund’s investment
strategies, which could have adverse consequences for the Fund and other
shareholders (e.g., by requiring the Fund to sell investments at inopportune
times or causing the Fund to maintain larger-than-expected cash positions
pending acquisition of investments).
Style Risk. Different investment styles (e.g.,
growth vs. value, quality bias, market capitalization focus) tend to shift in
and out of favor depending on market conditions and investor sentiment, and at
times when the investment style used by the Adviser for the Fund is out of
favor, the Fund may underperform other equity funds that use different
investment styles.
Focus Risk. To the extent that the Fund focuses
its investments in particular industries, asset classes or sectors of the
economy, any market changes affecting companies in those industries, asset
classes or sectors may impact the Fund’s performance.
28
Operational and Technology Risk. Cyber-attacks,
disruptions, or failures that affect the Fund’s service providers,
counterparties, market participants, or issuers of securities held by the Fund
may adversely affect the Fund and its shareholders, including by causing losses
for the Fund or impairing Fund operations.
The
Fund is not intended to be a complete investment program and is designed for
long-term investors.
FUND
PERFORMANCE HISTORY: Information on
the Fund’s annual total returns and average annual total returns will be
provided after the Fund has completed a full calendar year of
operations. Updated performance information will be available on
the Fund’s website at www.williamblairfunds.com or by
calling 1‑800‑635‑2886.
MANAGEMENT:
Investment Adviser. William Blair Investment
Management, LLC is the investment adviser of the Fund.
Portfolio Managers. William Heaphy and Matthew
Fleming, Associates of the Adviser, co-manage the Fund. Mr. Heaphy and
Mr. Fleming have co-managed the Fund since its inception in 2023.
PURCHASE
AND SALE OF FUND SHARES:
Class I Share Purchase. The minimum initial
investment for an account generally is $500,000 (or any lesser amount if, in
William Blair’s opinion, the investor has adequate intent and availability of
funds to reach a future level of investment of $500,000). There is no minimum
for subsequent purchases. There is no minimum initial investment for qualified
retirement plans, including, but not limited to, 401(k) plans, 457 plans,
employer-sponsored 403(b) plans, defined benefit plans and other similar
accounts, or plans whereby Class I shares are held through omnibus accounts
(either at the plan level or the level of the plan administrator) and certain
other accounts. William Blair may make certain additional exceptions to the
minimum initial investment amount in its discretion. Class I shares are only
available to certain investors. See “Your Account—Class I Shares” for additional
information on the eligibility requirements and investment minimums applicable
to purchasing Class I shares.
Class R6 Share Purchase. The minimum initial
investment for an account is $1 million (or any lesser amount if, in William
Blair’s opinion, the investor has adequate intent and availability of funds to
reach a future level of investment of $1 million). There is no minimum for
subsequent purchases. There is no minimum initial investment for qualified
retirement plans, including, but not limited to, 401(k) plans, 457 plans,
employer- sponsored 403(b) plans, defined benefit plans and other similar
accounts, or plans whereby Class R6 shares are held through omnibus accounts
(either at the plan level or the level of the plan administrator) and certain
other accounts. William Blair may make certain additional exceptions to the
minimum initial investment amount in its discretion. Class R6 shares are only
available to certain investors. See “Your Account—Class R6 Shares” for
additional information on eligibility requirements and investment minimums
applicable to purchasing Class R6 shares.
Sale. Shares of the Fund are redeemable on any
day the New York Stock Exchange is open for business by mail, wire or telephone,
depending on the elections you make in the account application.
TAX INFORMATION: The Fund intends to make
distributions that may be taxed as ordinary income or capital gains, unless you
are investing through a tax-advantaged investment plan. If you are investing
through a tax-advantaged investment plan, withdrawals from the tax-advantaged
investment plan may be subject to taxes.
PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL
INTERMEDIARIES: If you purchase shares of the Fund through a
broker-dealer or other financial intermediary (such as a bank), the Fund and its
related companies may pay the intermediary for the sale of shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
29
|
|
|
| |
WILLIAM BLAIR
SMALL CAP GROWTH FUND |
|
|
SUMMARY |
|
INVESTMENT
OBJECTIVE: The William Blair Small Cap Growth Fund seeks long-term capital
appreciation.
FEES AND
EXPENSES: This table describes the fees and expenses that you may pay if you
buy, hold and sell shares of the Fund. You may pay other fees, such as brokerage
commissions and other fees to financial intermediaries, which are not reflected
in the tables and examples below.
Shareholder Fees (fees paid directly from your
investment):
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
Class I |
|
|
Class R6 |
|
Maximum
Sales Charge (Load) Imposed on Purchases |
|
|
None |
|
|
|
None |
|
|
|
None |
|
Redemption
Fee |
|
|
None |
|
|
|
None |
|
|
|
None |
|
Annual Fund Operating Expenses (expenses that
you pay each year as a percentage of the value of your investment):
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
Class I |
|
|
Class R6 |
|
Management
Fee* |
|
|
0.94% |
|
|
|
0.94% |
|
|
|
0.94% |
|
Distribution
(Rule 12b-1) Fee |
|
|
0.25% |
|
|
|
None |
|
|
|
None |
|
Other
Expenses |
|
|
0.21% |
|
|
|
0.19% |
|
|
|
0.08% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
1.40% |
|
|
|
1.13% |
|
|
|
1.02% |
|
Fee
Waiver and/or Expense Reimbursement** |
|
|
0.16% |
|
|
|
0.14% |
|
|
|
0.08% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement*** |
|
|
1.24% |
|
|
|
0.99% |
|
|
|
0.94% |
|
* |
The Management Fee has been restated to
reflect a reduction to 0.94% of average daily net assets effective
May 1, 2023. |
** |
William
Blair Investment Management, LLC (the “Adviser”) has entered into a
contractual agreement with the Fund to waive fees and/or reimburse
expenses in order to limit the Fund’s operating expenses (excluding
interest expenses, taxes, brokerage commissions, acquired fund fees and
expenses, dividend and interest expenses on short sales, other
investment-related costs and extraordinary expenses, such as litigation
and other expenses not incurred in the ordinary course of the Fund’s
business) to 1.24%, 0.99% and 0.94% of average daily net assets for
Class N, Class I and Class R6 shares, respectively, until
April 30, 2025. The Adviser may not terminate this arrangement prior
to April 30, 2025 without
the approval of the Fund’s Board of Trustees.
|
*** |
The
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement does not equal the net expense ratio to average daily net
assets in the Financial Highlights section of this Prospectus as a result
of a change in the management fee and contractual expense limits.
|
Example: This example is intended to help you compare the cost of investing
in shares of the Fund with the cost of investing in other mutual funds. The
example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
example also assumes that your investment has a 5% return each year and the
Fund’s operating expenses remain the same. The figures reflect the expense
limitation for the first year. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
Class N |
|
$126 |
|
$427 |
|
$751 |
|
$1,666 |
Class I |
|
101 |
|
345 |
|
609 |
|
1,362 |
Class R6 |
|
96 |
|
317 |
|
555 |
|
1,241 |
30
Portfolio
Turnover: The Fund pays transaction costs, such as commissions, when it buys
and sells securities (or “turns over” its portfolio). A higher portfolio
turnover may indicate higher transaction costs and may result in higher taxes
when Fund shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example, affect the Fund’s
performance. During the most recent fiscal year, the Fund’s portfolio turnover
rate was 55% of the average value of its
portfolio.
PRINCIPAL INVESTMENT
STRATEGIES: Under normal market
conditions, the Fund invests at least 80% of its net assets (plus the amount of
any borrowings for investment purposes) in stocks of small capitalized (“small
cap”) companies. The Fund invests primarily in a diversified portfolio of equity
securities, including common stocks and other forms of equity investments (e.g.,
securities convertible into common stocks), of small cap U.S. growth companies
that are expected to exhibit quality growth characteristics. The Fund’s
investments in small cap companies may include a significant weighting to
micro-cap companies (which, for purposes of the Fund, are companies with market
capitalizations of $1 billion or less at the time of the Fund’s
investment). For purposes of the Fund, the Adviser considers a company to be a
small cap company if it has a market capitalization no larger than the largest
capitalized company included in the Russell 2000® Index at the time of the
Fund’s investment. Securities of companies whose market capitalizations no
longer meet this definition after purchase may continue to be held in the Fund.
To a limited extent, the Fund may also purchase stocks of companies with
business characteristics and growth prospects similar to small cap companies,
but that may have market capitalizations above the market capitalization of the
largest member of the Russell 2000® Index.
The
Russell 2000® Index is a
widely recognized, unmanaged index of common stocks that measures the
performance of the 2,000 smallest companies in the Russell 3000® Index. The companies in the
Russell 2000® Index are
considered representative of small cap companies. The size of companies in the
Russell 2000® Index may
change with market conditions. In addition, changes to the composition of the
Russell 2000® Index can
change the market capitalization range of the companies included in the index.
As of March 31, 2024, the Russell 2000® Index included securities
issued by companies that ranged in size between $16.6 million and $59.1 billion.
The Russell 2000® Growth
Index, the Fund’s performance benchmark, measures the performance of those
Russell 2000 companies with a greater-than-average growth orientation.
In
choosing investments, the Adviser performs fundamental company analysis and
focuses on stock selection. The Adviser evaluates the extent to which a company
meets the quality growth criteria set forth below. All of the criteria are
evaluated relative to the valuation of the security. The weight given to a
particular investment criterion will depend upon the circumstances, and Fund
holdings may not meet all of the following criteria: (a) the company should
be, or should have the expectation of becoming, a significant provider in the
primary markets it serves, (b) the company should have some distinctive
attribute relative to present or potential competitors (for example, this may
take the form of proprietary products or processes, a unique distribution
system, an entrenched brand name or an especially strong financial position
relative to its competition), (c) the company should participate in an
industry expected to grow rapidly due to economic factors or technological
change or should grow through market share gains in its industry and
(d) the company should have a strong management team.
PRINCIPAL
RISKS: The Fund’s
returns will vary, and you could lose money by investing in the
Fund. The following is a summary of the principal risks
associated with an investment in the Fund.
Equity Funds General Risk. Because the Fund
invests substantially all of its assets in equity securities of small cap U.S.
growth companies, the primary risk is that the value of the equity securities it
holds might decrease in response to the activities of an individual company or
in response to general market, business and economic conditions. If this occurs,
the Fund’s share price may also decrease. In addition, there is the risk that
individual securities may not perform as expected or a strategy used by the
Adviser may fail to produce its intended result.
31
Market Risk. The value of the Fund’s
investments may go up or down, sometimes rapidly or unpredictably. The value of
an investment may decline due to factors affecting securities markets generally
or particular industries represented in the securities markets. The value of an
investment may decline due to general market conditions that are not
specifically related to a particular company, such as real or perceived adverse
economic conditions, recessions, inflation, rapid interest rate changes, changes
in the general outlook for corporate earnings, changes in interest or currency
rates or adverse investor sentiment generally. Events such as war, acts of
terrorism, social unrest, natural disasters, the spread of infectious illness or
other public health threats could also significantly impact the Fund and its
investments. The value of an investment may also decline due to factors that
affect a particular industry or industries, such as labor shortages or increased
production costs and competitive conditions within an industry. During a general
downturn in the securities markets, multiple asset classes may decline in value
simultaneously. Geopolitical and other events may also disrupt securities
markets and adversely affect global economies and markets and thereby decrease
the value of the Fund’s investments.
Small and Micro-Cap Company Risk. Stocks of
small and micro cap companies involve greater risk than those of larger, more
established companies. This is because small and micro cap companies may be in
earlier stages of development, may be dependent on a small number of products or
services, may lack substantial capital reserves and/or do not have proven track
records. Small and micro cap companies may be traded in low volumes. This can
increase volatility and increase the risk that the Fund will not be able to sell
a security on short notice at a reasonable price. The securities of small and
micro cap companies may be more volatile and less liquid than securities of
large capitalized companies. For purposes of the Fund, micro cap companies are
companies with market capitalizations of $1 billion or less at the time of
the Fund’s investment.
Share Ownership Concentration Risk. To the
extent that a significant portion of the Fund’s shares is held by a limited
number of shareholders or their affiliates, there is a risk that the share
trading activities of these shareholders could disrupt the Fund’s investment
strategies, which could have adverse consequences for the Fund and other
shareholders (e.g., by requiring the Fund to sell investments at inopportune
times or causing the Fund to maintain larger-than-expected cash positions
pending acquisition of investments).
Style Risk. Different investment styles (e.g.,
growth vs. value, quality bias, market capitalization focus) tend to shift in
and out of favor depending on market conditions and investor sentiment, and at
times when the growth investment style used by the Adviser for the Fund is out
of favor, the Fund may underperform other equity funds that use different
investment styles.
Focus Risk. To the extent that the Fund focuses
its investments in particular industries, asset classes or sectors of the
economy, any market changes affecting companies in those industries, asset
classes or sectors may impact the Fund’s performance.
Operational and Technology Risk. Cyber-attacks,
disruptions, or failures that affect the Fund’s service providers,
counterparties, market participants, or issuers of securities held by the Fund
may adversely affect the Fund and its shareholders, including by causing losses
for the Fund or impairing Fund operations.
The
Fund is not intended to be a complete investment program. The Fund is designed
for long-term investors.
The Fund involves a high level of risk and may not be
appropriate for everyone. You should only consider it for the aggressive
portion of your portfolio.
FUND
PERFORMANCE HISTORY: The information below provides some indication of
the risks of investing in the Fund by showing changes in the Fund’s performance
from year to year and by showing how the Fund’s average annual total returns for
the periods indicated compare with those of a broad measure of market
performance and an additional index. The Fund has added the
performance of the Russell 3000® Index, which represents a
broad measure of market performance, to comply with new regulatory requirements.
The table also includes the performance of the Russell 2000® Growth Index, which is
generally representative of the market
sectors or types of investments
in which the Fund invests. The Fund’s past
performance (before and after taxes)
32
does not necessarily indicate
how it will perform in the future. For more recent performance
information, go to www.williamblairfunds.com or
call 1‑800‑635‑2886.
Annual Total
Returns. The bar chart below provides an illustration of how the Fund’s
performance has varied in each of the last ten calendar years for Class N
shares.
|
|
|
| |
|
|
Highest Quarterly Return
29.72% (4Q20) |
|
Lowest Quarterly Return
(25.08)% (1Q20) |
Average Annual Total
Returns (For the periods
ended December 31, 2023). The table below shows returns on a before-tax and
after-tax basis for Class N shares and on a before-tax basis for
Class I and Class R6 shares. After-tax returns for Class I and
Class R6 shares will vary. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. In some instances, the “Return After Taxes on
Distributions and Sale of Fund Shares” may be greater than the “Return Before
Taxes” because the investor is assumed to be able to use the capital loss on the
sale of Fund shares to offset other taxable capital gains.
Actual after-tax returns depend on an investor’s tax situation and may differ
from those shown. After-tax returns are not relevant to investors
who hold their Fund shares through tax-deferred arrangements, such as 401(k)
plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Class N
Shares |
|
|
|
| |
|
|
| |
|
| |
Return
Before Taxes |
|
|
16.06% |
|
|
|
11.69% |
|
|
|
9.65% |
|
Return
After Taxes on Distributions |
|
|
15.56% |
|
|
|
9.47% |
|
|
|
6.61% |
|
Return
After Taxes on Distributions and Sale of Fund Shares |
|
|
9.86% |
|
|
|
9.01% |
|
|
|
6.74% |
|
|
|
| |
Class I
Shares |
|
|
|
| |
|
|
| |
|
| |
Return
Before Taxes |
|
|
16.35% |
|
|
|
11.96% |
|
|
|
9.92% |
|
|
|
| |
Russell
3000®
Index (reflects no deduction for fees, expenses or
taxes) |
|
|
25.96% |
|
|
|
15.16% |
|
|
|
11.48% |
|
Russell
2000® Growth
Index (reflects no deduction for fees, expenses or
taxes) |
|
|
18.66% |
|
|
|
9.22% |
|
|
|
7.16% |
|
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
|
Since Share Class Inception (May 2,
2019) |
|
Class R6
Shares |
|
|
|
| |
|
| |
Return
Before Taxes |
|
|
16.44% |
|
|
|
8.75% |
|
|
| |
Russell
3000®
Index (reflects no deduction for fees, expenses or
taxes) |
|
|
25.96% |
|
|
|
12.39% |
|
Russell
2000® Growth
Index (reflects no deduction for fees, expenses or
taxes) |
|
|
18.66% |
|
|
|
5.80% |
|
33
MANAGEMENT:
Investment Adviser. William Blair Investment
Management, LLC is the investment adviser of the Fund.
Portfolio Managers. Ward Sexton and Mark
Thompson, Partners of the Adviser, co-manage the Fund. Mr. Sexton has
co-managed the Fund since 2016. Mr. Thompson has co-managed the Fund since
2020.
PURCHASE
AND SALE OF FUND SHARES:
Class N Share Purchase. The minimum
initial investment for an account generally is $2,500. The minimum subsequent
investment generally is $1,000. Certain exceptions to the minimum initial and
subsequent investment amounts may apply. See “Your Account—Class N Shares”
for additional information on eligibility requirements applicable to purchasing
Class N shares.
Class I Share Purchase. The minimum
initial investment for an account generally is $500,000 (or any lesser amount
if, in William Blair’s opinion, the investor has adequate intent and
availability of funds to reach a future level of investment of $500,000). There
is no minimum for subsequent purchases. There is no minimum initial investment
for qualified retirement plans, including, but not limited to, 401(k) plans, 457
plans, employer-sponsored 403(b) plans, defined benefit plans and other similar
accounts, or plans whereby Class I shares are held through omnibus accounts
(either at the plan level or the level of the plan administrator) and certain
other accounts. William Blair may make certain additional exceptions to the
minimum initial investment amount in its discretion. Class I shares are
only available to certain investors. See “Your Account—Class I Shares” for
additional information on the eligibility requirements and investment minimums
applicable to purchasing Class I shares.
Class R6 Share Purchase. The minimum
initial investment for an account is $1 million (or any lesser amount if,
in William Blair’s opinion, the investor has adequate intent and availability of
funds to reach a future level of investment of $1 million). There is no minimum
for subsequent purchases. There is no minimum initial investment for qualified
retirement plans, including, but not limited to, 401(k) plans, 457 plans,
employer-sponsored 403(b) plans, defined benefit plans and other similar
accounts, or plans whereby Class R6 shares are held through omnibus
accounts (either at the plan level or the level of the plan administrator) and
certain other accounts. William Blair may make certain additional exceptions to
the minimum initial investment amount in its discretion. Class R6 shares
are only available to certain investors. See “Your Account—Class R6 Shares”
for additional information on eligibility requirements and investment minimums
applicable to purchasing Class R6 shares.
Sale. Shares of the Fund are redeemable on any
day the New York Stock Exchange is open for business by mail, wire or telephone,
depending on the elections you make in the account application.
TAX INFORMATION: The Fund intends to make
distributions that may be taxed as ordinary income or capital gains, unless you
are investing through a tax-advantaged investment plan. If you are investing
through a tax-advantaged investment plan, withdrawals from the tax-advantaged
investment plan may be subject to taxes.
PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL
INTERMEDIARIES: If you purchase shares of the Fund through a
broker-dealer or other financial intermediary (such as a bank), the Fund and its
related companies may pay the intermediary for the sale of shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
34
|
|
|
| |
WILLIAM BLAIR
SMALL CAP VALUE FUND |
|
|
SUMMARY |
|
INVESTMENT
OBJECTIVE: The William Blair Small Cap Value Fund seeks long-term capital
appreciation.
FEES AND
EXPENSES: This table describes the fees and expenses that you may pay if you
buy, hold and sell shares of the Fund. You may pay other fees, such as brokerage
commissions and other fees to financial intermediaries, which are not reflected
in the tables and examples below.
Shareholder Fees (fees paid directly from your
investment):
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
Class I |
|
|
Class R6 |
|
Maximum
Sales Charge (Load) Imposed on Purchases |
|
|
None |
|
|
|
None |
|
|
|
None |
|
Redemption
Fee |
|
|
None |
|
|
|
None |
|
|
|
None |
|
Annual Fund Operating Expenses (expenses that
you pay each year as a percentage of the value of your investment):
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
Class I |
|
|
Class R6 |
|
Management
Fee |
|
|
0.75% |
|
|
|
0.75% |
|
|
|
0.75% |
|
Distribution
(Rule 12b-1) Fee |
|
|
0.25% |
|
|
|
None |
|
|
|
None |
|
Other
Expenses |
|
|
0.11% |
|
|
|
0.17% |
|
|
|
0.04% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
1.11% |
|
|
|
0.92% |
|
|
|
0.79% |
|
Fee
Waiver and/or Expense Reimbursement* |
|
|
N/A |
|
|
|
0.03% |
|
|
|
N/A |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
|
|
1.11% |
|
|
|
0.89% |
|
|
|
0.79% |
|
* |
William
Blair Investment Management, LLC (the “Adviser”) has entered into a
contractual agreement with the Fund to waive fees and/or reimburse
expenses in order to limit the Fund’s operating expenses (excluding
interest expenses, taxes, brokerage commissions, acquired fund fees and
expenses, dividend and interest expenses on short sales, other
investment-related costs and extraordinary expenses, such as litigation
and other expenses not incurred in the ordinary course of the Fund’s
business) to 0.89% of average daily net assets for Class I shares until
April 30, 2025. The Adviser may not terminate this arrangement prior
to April 30, 2025 without
the approval of the Fund’s Board of Trustees.
|
Example: This example is intended to help you compare the cost of investing
in shares of the Fund with the cost of investing in other mutual funds. The
example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
example also assumes that your investment has a 5% return each year and the
Fund’s operating expenses remain the same. The figures reflect the expense
limitation for the first year. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
Class N |
|
$113 |
|
$353 |
|
$612 |
|
$1,352 |
Class I |
|
91 |
|
290 |
|
506 |
|
1,129 |
Class R6 |
|
81 |
|
252 |
|
439 |
|
978 |
Portfolio
Turnover: The Fund pays transaction costs, such as commissions, when it buys
and sells securities (or “turns over” its portfolio). A higher portfolio
turnover may indicate higher transaction costs and may result in higher taxes
when Fund shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example, affect the Fund’s
performance. During the most recent fiscal year, the Fund’s portfolio turnover
rate was 27% of the average value of its
portfolio.
35
PRINCIPAL INVESTMENT
STRATEGIES: Under normal market
conditions, the Fund invests at least 80% of its net assets (plus the amount of
any borrowings for investment purposes) in equity securities of small
capitalized (“small cap”) companies. For purposes of the Fund, the Adviser
considers a company to be a small cap company if it has a market capitalization
no larger than the largest capitalized company included in the Russell 2000® Index at the time of the
Fund’s investment. Securities of companies whose market capitalizations no
longer meet this definition after purchase may continue to be held in the Fund.
To a limited extent, the Fund may also purchase stocks of companies with
business characteristics and value prospects similar to small cap companies, but
that may have market capitalizations above the market capitalization of the
largest member of the Russell 2000® Index. The Fund may invest
in equity securities listed on a national securities exchange or traded in the
over-the-counter markets. The Fund invests primarily in common stocks, but it
may also invest in other types of equity securities, including real estate
investment trusts (“REITs”) and American Depositary Receipts
(“ADRs”).
The
Russell 2000® Index is a
widely recognized, unmanaged index of common stocks that measures the
performance of the 2,000 smallest companies in the Russell 3000® Index. The companies in the
Russell 2000® Index are
considered representative of small cap companies. The size of companies in the
Russell 2000® Index may
change with market conditions. In addition, changes to the composition of the
Russell 2000® Index can
change the market capitalization range of the companies included in the index.
As of March 31, 2024, the Russell 2000® Index included securities
issued by companies that ranged in size between $16.6 million and
$59.1 billion. The Russell 2000® Value Index, the Fund’s
performance benchmark, measures the performance of those Russell 2000
companies with lower price-to-book ratios and lower forecasted growth values.
In
selecting investments for the Fund, the Adviser typically looks to invest in
companies with leading market share positions, shareholder oriented managements,
and strong balance sheet and cash flow ratios. Usually, the shares of the
companies the Adviser buys are selling at a price to earnings ratio below the
average price to earnings ratio of the stocks that comprise the Russell 2000® Index. In addition, the
companies selected by the Adviser usually have higher returns on equity and
capital than the average company in the Russell 2000® Index. The Adviser screens
the Fund’s universe of potential investments to identify potentially undervalued
securities based on factors such as financial strength, earnings valuation, and
earnings quality. The Adviser further narrows the list of potential investments
through traditional fundamental security analysis, which may include interviews
with company management and a review of the assessments and opinions of outside
analysts and consultants. Securities are sold when the Adviser believes the
shares have become relatively overvalued or it finds more attractive
alternatives. The Adviser generally will not sell a security merely due to
market appreciation outside the Fund’s target capitalization range if it
believes the company has valuation upside potential.
PRINCIPAL
RISKS: The Fund’s
returns will vary, and you could lose money by investing in the
Fund. The following is a summary of the principal risks
associated with an investment in the Fund.
Equity Funds General Risk. Because the Fund
invests substantially all of its assets in equity securities of U.S. small cap
value companies, the primary risk is that the value of the equity securities it
holds might decrease in response to the activities of an individual company or
in response to general market, business and economic conditions. If this occurs,
the Fund’s share price may also decrease. In addition, there is the risk that
individual securities may not perform as expected or a strategy used by the
Adviser may fail to produce its intended result.
Market Risk. The value of the Fund’s
investments may go up or down, sometimes rapidly or unpredictably. The value of
an investment may decline due to factors affecting securities markets generally
or particular industries represented in the securities markets. The value of an
investment may decline due to general market conditions that are not
specifically related to a particular company, such as real or perceived adverse
economic conditions, recessions, inflation, rapid interest rate changes, changes
in the general outlook for corporate earnings, changes in interest or currency
rates or adverse investor sentiment generally. Events such as war, acts of
terrorism, social unrest, natural disasters, the spread of infectious illness or
other public health threats could also significantly impact the Fund and its
investments. The value of an investment may also decline due to
36
factors
that affect a particular industry or industries, such as labor shortages or
increased production costs and competitive conditions within an industry. During
a general downturn in the securities markets, multiple asset classes may decline
in value simultaneously. Geopolitical and other events may also disrupt
securities markets and adversely affect global economies and markets and thereby
decrease the value of the Fund’s investments.
Small and Micro Cap Company Risk. Stocks of
small and micro cap companies involve greater risk than those of larger, more
established companies. This is because small and micro cap companies may be in
earlier stages of development, may be dependent on a small number of products or
services, may lack substantial capital reserves and/or do not have proven track
records. Small and micro cap companies may be traded in low volumes. This can
increase volatility and increase the risk that the Fund will not be able to sell
a security on short notice at a reasonable price. The securities of small and
micro cap companies may be more volatile and less liquid than securities of
large capitalized companies. For purposes of the Fund, micro cap companies are
companies with market capitalizations of $500 million or less at the time
of the Fund’s investment.
REIT Risk. REITs are pooled investment vehicles
that own, and usually operate, income-producing real estate. REITs are
susceptible to the risks associated with direct ownership of real estate, such
as the following: declines in property values; increases in property taxes,
operating expenses, interest rates or competition; overbuilding; zoning changes;
and losses from casualty or condemnation. REITs typically incur fees that are
separate from those of the Fund. Accordingly, the Fund’s shareholders will
indirectly bear a proportionate share of the REITs’ operating expenses, in
addition to paying Fund expenses. REIT operating expenses are not reflected in
the fee table and example in this Prospectus.
Foreign Investment Risk. The Fund’s investments
in ADRs are subject to foreign securities risk. ADRs are certificates evidencing
ownership of shares of a foreign issuer that are issued by depositary banks and
traded on U.S. exchanges. Although ADRs are alternatives to directly purchasing
the underlying foreign securities in their national markets and currencies, they
continue to be subject to many of the risks associated with investing directly
in foreign securities.
Share Ownership Concentration Risk. To the
extent that a significant portion of the Fund’s shares is held by a limited
number of shareholders or their affiliates, there is a risk that the share
trading activities of these shareholders could disrupt the Fund’s investment
strategies, which could have adverse consequences for the Fund and other
shareholders (e.g., by requiring the Fund to sell investments at inopportune
times or causing the Fund to maintain larger-than-expected cash positions
pending acquisition of investments).
Style Risk. Different investment styles (e.g.,
growth vs. value, quality bias, market capitalization focus) tend to shift in
and out of favor depending on market conditions and investor sentiment, and at
times when the value investment style used by the Adviser for the Fund is out of
favor, the Fund may underperform other equity funds that use different
investment styles.
Focus Risk. To the extent that the Fund focuses
its investments in particular industries, asset classes or sectors of the
economy, any market changes affecting companies in those industries, asset
classes or sectors may impact the Fund’s performance.
Operational and Technology Risk. Cyber-attacks,
disruptions, or failures that affect the Fund’s service providers,
counterparties, market participants, or issuers of securities held by the Fund
may adversely affect the Fund and its shareholders, including by causing losses
for the Fund or impairing Fund operations.
The
Fund is not intended to be a complete investment program. The Fund is designed
for long-term investors.
The Fund involves a high level of risk and may not be
appropriate for everyone. You should only consider it for the aggressive
portion of your portfolio.
37
FUND
PERFORMANCE HISTORY: The information below provides some indication of
the risks of investing in the Fund by showing changes in the Fund’s performance
from year to year and by showing how the Fund’s average annual total returns for
the periods indicated compare with those of a broad measure of market
performance and an additional index. The Fund has added the
performance of the Russell 3000® Index, which represents a
broad measure of market performance, to comply with new regulatory requirements.
The table also includes the performance of the Russell 2000® Value Index, which is
generally representative of the market sectors or types of investments in which
the Fund invests. The
Fund’s past performance (before and after taxes) does not necessarily indicate
how it will perform in the future. On July 16, 2021, the
Fund acquired the assets and assumed the liabilities of the ICM Small Company
Portfolio (the “Predecessor Fund”), a series of The Advisors’ Inner Circle Fund,
in a reorganization (the “Reorganization”). In the Reorganization, former
shareholders of the Predecessor Fund received Class I shares of the Fund.
The Predecessor Fund was advised by Investment Counselors of Maryland, LLC,
which was acquired by the Adviser. The Predecessor Fund’s (Institutional
Class shares) performance and financial history have been adopted by
Class I shares of the Fund following the Reorganization and are being used
going forward from the date of the Reorganization. The performance of
Class I shares of the Fund therefore reflects the performance of the
Predecessor Fund prior to the Reorganization. The performance of the Predecessor
Fund has not been restated to reflect the annual operating expenses of
Class I shares of the Fund, which were different than those of the
Predecessor Fund. Because the Fund had different fees and expenses than the
Predecessor Fund, the Predecessor Fund would therefore have had different
performance results if it was subject to the Fund’s fees and expenses. The
Fund’s past performance (including the performance of the Predecessor Fund),
before and after taxes, is not necessarily an indication of how the Fund will
perform in the future and does not guarantee future results. For more recent
performance information, go to www.williamblairfunds.com or call
1-800-635-2886.
Annual Total
Returns. The bar chart below provides an illustration of how the Fund’s
performance has varied in each of the last ten calendar years for Class I
shares.
|
|
|
| |
|
|
Highest Quarterly Return
29.75% (4Q20) |
|
Lowest Quarterly Return
(35.02)% (1Q20) |
Average Annual Total
Returns (For the periods
ended December 31, 2023). The table below shows returns on a before-tax and
after-tax basis for Class I shares and on a before-tax basis for Class N
and Class R6 shares. After-tax returns for Class N and Class R6 shares will
vary. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. In some instances, the “Return After Taxes on
Distributions and Sale of Fund Shares” may be greater than the “Return Before
Taxes” because the investor is assumed to be able to use the capital loss on the
sale of Fund shares to offset other taxable capital gains.
Actual after-tax returns depend on an investor’s tax situation and
may
38
differ from those shown.
After-tax returns are not relevant to investors
who hold their Fund shares through tax-deferred arrangements, such as 401(k)
plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Class I
Shares |
|
|
|
| |
|
|
| |
|
| |
Return
Before Taxes |
|
|
10.86% |
|
|
|
10.60% |
|
|
|
7.74% |
|
Return
After Taxes on Distributions |
|
|
10.01% |
|
|
|
8.94% |
|
|
|
5.44% |
|
Return
After Taxes on Distributions and Sale of Fund Shares |
|
|
7.02% |
|
|
|
8.15% |
|
|
|
5.59% |
|
|
|
| |
Russell
3000®
Index (reflects no deduction for fees, expenses or
taxes) |
|
|
25.96% |
|
|
|
15.16% |
|
|
|
11.48% |
|
Russell
2000® Value
Index (reflects no deduction for fees, expenses or
taxes) |
|
|
14.65% |
|
|
|
10.00% |
|
|
|
6.76% |
|
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
|
Since Share Class Inception (July 19,
2021) |
|
Class
N Shares |
|
|
|
| |
|
| |
Return
Before Taxes |
|
|
10.59% |
|
|
|
2.58% |
|
Class
R6 Shares |
|
|
|
| |
|
| |
Return
Before Taxes |
|
|
10.96% |
|
|
|
2.94% |
|
|
| |
Russell
3000®
Index (reflects no deduction for fees, expenses or
taxes) |
|
|
25.96% |
|
|
|
5.11% |
|
Russell
2000® Value
Index (reflects no deduction for fees, expenses or
taxes) |
|
|
14.65% |
|
|
|
2.12% |
|
MANAGEMENT:
Investment Adviser. William Blair Investment
Management, LLC is the investment adviser of the Fund.
Portfolio Managers. William V. Heaphy and
Matthew Fleming, Associates of the Adviser, co-manage the Fund. Mr. Heaphy
has co-managed the Fund since 2021 (and managed the Predecessor Fund since
1999). Mr. Fleming has co-managed the Fund since 2024.
PURCHASE
AND SALE OF FUND SHARES:
Class N Share Purchase. The minimum
initial investment for an account generally is $2,500. The minimum subsequent
investment generally is $1,000. Certain exceptions to the minimum initial and
subsequent investment amounts may apply. See “Your Account—Class N Shares”
for additional information on eligibility requirements applicable to purchasing
Class N shares.
Class I Share Purchase. The minimum
initial investment for an account generally is $500,000 (or any lesser amount
if, in William Blair’s opinion, the investor has adequate intent and
availability of funds to reach a future level of investment of $500,000). There
is no minimum for subsequent purchases. There is no minimum initial investment
for qualified retirement plans, including, but not limited to, 401(k) plans, 457
plans, employer-sponsored 403(b) plans, defined benefit plans and other similar
accounts, or plans whereby Class I shares are held through omnibus accounts
(either at the plan level or the level of the plan administrator) and certain
other accounts. William Blair may make certain additional exceptions to the
minimum initial investment amount in its discretion. Class I shares are
only available to certain investors. See “Your Account—Class I Shares” for
additional information on the eligibility requirements and investment minimums
applicable to purchasing Class I shares.
39
Class R6 Share Purchase. The minimum
initial investment for an account is $1 million (or any lesser amount
if, in William Blair’s opinion, the investor has adequate intent and
availability of funds to reach a future level of investment of $1 million).
There is no minimum for subsequent purchases. There is no minimum initial
investment for qualified retirement plans, including, but not limited to, 401(k)
plans, 457 plans, employer-sponsored 403(b) plans, defined benefit plans and
other similar accounts, or plans whereby Class R6 shares are held through
omnibus accounts (either at the plan level or the level of the plan
administrator) and certain other accounts. William Blair may make certain
additional exceptions to the minimum initial investment amount in its
discretion. Class R6 shares are only available to certain investors. See
“Your Account—Class R6 Shares” for additional information on eligibility
requirements and investment minimums applicable to purchasing Class R6
shares.
Sale. Shares of the Fund are redeemable on any
day the New York Stock Exchange is open for business by mail, wire or telephone,
depending on the elections you make in the account application.
TAX INFORMATION: The Fund intends to make
distributions that may be taxed as ordinary income or capital gains, unless you
are investing through a tax-advantaged investment plan. If you are investing
through a tax-advantaged investment plan, withdrawals from the tax-advantaged
investment plan may be subject to taxes.
PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL
INTERMEDIARIES: If you purchase shares of the Fund through a
broker-dealer or other financial intermediary (such as a bank), the Fund and its
related companies may pay the intermediary for the sale of shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
40
WILLIAM
BLAIR GLOBAL LEADERS FUND |
SUMMARY
|
INVESTMENT
OBJECTIVE: The William Blair Global Leaders Fund seeks long-term capital
appreciation.
FEES AND
EXPENSES: This table describes the fees and expenses that you may pay if you
buy, hold and sell shares of the Fund. You may pay other fees, such as brokerage
commissions and other fees to financial intermediaries, which are not reflected
in the tables and examples below.
Shareholder Fees (fees paid directly from your
investment):
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
Class I |
|
|
Class R6 |
|
Maximum
Sales Charge (Load) Imposed on Purchases |
|
|
None |
|
|
|
None |
|
|
|
None |
|
Redemption
Fee |
|
|
None |
|
|
|
None |
|
|
|
None |
|
Annual Fund Operating Expenses (expenses that
you pay each year as a percentage of the value of your investment):
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
Class I |
|
|
Class R6 |
|
Management
Fee |
|
|
0.85% |
|
|
|
0.85% |
|
|
|
0.85% |
|
Distribution
(Rule 12b-1) Fee |
|
|
0.25% |
|
|
|
None |
|
|
|
None |
|
Other
Expenses |
|
|
0.32% |
|
|
|
0.29% |
|
|
|
0.20% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
1.42% |
|
|
|
1.14% |
|
|
|
1.05% |
|
Fee
Waiver and/or Expense Reimbursement* |
|
|
0.27% |
|
|
|
0.24% |
|
|
|
0.20% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
|
|
1.15% |
|
|
|
0.90% |
|
|
|
0.85% |
|
* |
William
Blair Investment Management, LLC (the “Adviser”) has entered into a
contractual agreement with the Fund to waive fees and/or reimburse
expenses in order to limit the Fund’s operating expenses (excluding
interest expenses, taxes, brokerage commissions, acquired fund fees and
expenses, dividend and interest expenses on short sales, other
investment-related costs and extraordinary expenses, such as litigation
and other expenses not incurred in the ordinary course of the Fund’s
business) to 1.15%, 0.90% and 0.85% of average daily net assets for
Class N, Class I and Class R6 shares, respectively, until
April 30, 2025. The Adviser may not terminate this arrangement prior
to April 30, 2025 without
the approval of the Fund’s Board of Trustees.
|
Example: This example is intended to help you compare the cost of investing
in shares of the Fund with the cost of investing in other mutual funds. The
example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
example also assumes that your investment has a 5% return each year and the
Fund’s operating expenses remain the same. The figures reflect the expense
limitation for the first year. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
Class N |
|
$117 |
|
$423 |
|
$751 |
|
$1,679 |
Class I |
|
92 |
|
338 |
|
604 |
|
1,365 |
Class R6 |
|
87 |
|
314 |
|
560 |
|
1,265 |
Portfolio
Turnover: The Fund pays
transaction costs, such as commissions, when it buys and sells securities (or
“turns over” its portfolio). A higher portfolio turnover may indicate higher
transaction costs and may result in higher taxes when Fund shares are held in a
taxable account. These costs, which are not reflected in annual
fund
41
operating expenses or in the
example, affect the Fund’s performance. During the most recent fiscal year, the
Fund’s portfolio turnover rate was 36% of the average value of its
portfolio.
PRINCIPAL INVESTMENT
STRATEGIES: Under normal market
conditions, the Fund invests at least 80% of its total assets in a diversified
portfolio of equity securities, including common stocks and other forms of
equity investments (e.g., securities convertible into common stocks), issued by
companies of all sizes worldwide that the Adviser believes have above-average
growth, profitability and quality characteristics. The Adviser seeks investment
opportunities in companies at different stages of development, ranging from
large, well-established companies to smaller companies at earlier stages of
development, that are leaders in their country, industry or globally in terms of
products, services or execution. The Fund’s investments are normally allocated
among at least six different countries and no more than 65% of the Fund’s equity
holdings may be invested in securities of issuers in any one country at any
given time. Under normal market conditions, at least 40% of the Fund’s assets
will be invested in companies located outside the United States. Normally, the
Fund’s investments will be divided among the United States, Continental Europe,
the United Kingdom, Canada, Japan and the markets of the Pacific Basin. The Fund
may invest the greater of 30% of its net assets or twice the emerging markets
component of the MSCI All Country World Investable Market Index (IMI) (net) in
emerging markets, which include every country in the world except the United
States, Canada, Japan, Australia, New Zealand, Hong Kong, Singapore and most
Western European countries.
In
choosing investments, the Adviser performs fundamental company analysis and
focuses on stock selection. The Adviser generally seeks equity securities,
including common stocks, of companies that historically have had superior
growth, profitability and quality relative to local markets and relative to
companies within the same industry worldwide, and that are expected to continue
such performance. Such companies generally will exhibit superior business
fundamentals, including leadership in their field, quality products or services,
distinctive marketing and distribution, pricing flexibility and revenue from
products or services consumed on a steady, recurring basis. These business
characteristics should be accompanied by management that is shareholder
return-oriented and that uses conservative accounting policies. Companies with
above-average returns on equity, strong balance sheets and consistent,
above-average earnings growth will be the primary focus. Stock selection will
take into account both local and global comparisons.
The
Adviser will vary the Fund’s sector and geographic diversification based upon
the Adviser’s ongoing evaluation of economic, market and political trends
throughout the world. In making decisions regarding country allocation, the
Adviser will consider such factors as the conditions and growth potential of
various economies and securities markets, currency exchange rates, technological
developments in the various countries and other pertinent financial, social,
national and political factors.
PRINCIPAL
RISKS: The Fund’s
returns will vary, and you could lose money by investing in the
Fund. The following is a summary of the principal risks
associated with an investment in the Fund.
Equity Funds General Risk. Because the Fund
invests substantially all of its assets in equity securities of companies
throughout the world, the primary risk is that the value of the equity
securities it holds might decrease in response to the activities of an
individual company or in response to general market, business and economic
conditions. If this occurs, the Fund’s share price may also decrease. In
addition, there is the risk that individual securities may not perform as
expected or a strategy used by the Adviser may fail to produce its intended
result.
Market Risk. The value of the Fund’s
investments may go up or down, sometimes rapidly or unpredictably. The value of
an investment may decline due to factors affecting securities markets generally
or particular industries represented in the securities markets. The value of an
investment may decline due to general market conditions that are not
specifically related to a particular company, such as real or perceived adverse
economic conditions, recessions, inflation, rapid interest rate changes, changes
in the general outlook for corporate earnings, changes in interest or currency
rates or adverse investor sentiment generally. Events such as war, acts of
terrorism, social unrest, natural disasters, the spread of infectious illness or
other public health threats could
42
also
significantly impact the Fund and its investments. The value of an investment
may also decline due to factors that affect a particular industry or industries,
such as labor shortages or increased production costs and competitive conditions
within an industry. During a general downturn in the securities markets,
multiple asset classes may decline in value simultaneously. Geopolitical and
other events may also disrupt securities markets and adversely affect global
economies and markets and thereby decrease the value of the Fund’s investments.
Foreign Investment Risk. The risks of foreign
investments may include less publicly available information, less stringent
investor protections and disclosure standards, less governmental regulation and
supervision of foreign stock exchanges, brokers and issuers, share registration
and custody, a lack of uniform accounting, auditing and financial reporting
standards, practices and requirements, the possibility of expropriation, seizure
or nationalization, confiscatory taxation, limits on repatriation, adverse
changes in investment or exchange control regulations, political instability,
restrictions on the flow of international capital, imposition of foreign
withholding or other taxes, fluctuating currencies, inflation, difficulty in
obtaining and enforcing judgments against foreign entities or other adverse
political, social or diplomatic developments that could affect the Fund’s
investments. Foreign investments may be less liquid and their prices more
volatile than the securities of U.S. companies. The Fund is expected to incur
operating expenses that are higher than those of mutual funds investing
exclusively in U.S. equity securities due to the higher custodial fees
associated with foreign securities investments.
Currency Risk. The value of the Fund’s
portfolio may be affected by changes in exchange rates or control regulations.
If a local currency gains against the U.S. dollar, the value of the security
increases in U.S. dollar terms. If a local currency declines against the U.S.
dollar, the value of the security decreases in U.S. dollar terms.
Emerging Markets Risk. Foreign investment risk
is typically magnified in emerging markets, which are the less developed and
developing nations.
Geographic Risk. To the extent that the Fund
invests a significant portion of its assets in any one country or geographic
region, the Fund will be subject to greater risk of loss or volatility than if
the Fund always maintained wide geographic diversity among the countries and
geographic regions in which it invests. Investing in any one country or
geographic region makes the Fund more vulnerable to the risks of adverse
securities markets, exchange rates and social, political, regulatory and
economic events in that one country or geographic region.
Smaller Company Risk. Stocks of smaller
companies involve greater risk than those of larger, more established companies.
This is because smaller companies may be in earlier stages of development, may
be dependent on a small number of products or services, may lack substantial
capital reserves and/or do not have proven track records. Smaller companies may
be traded in low volumes. This can increase volatility and increase the risk
that the Fund will not be able to sell a security on short notice at a
reasonable price. The securities of smaller companies may be more volatile and
less liquid than securities of large capitalized companies.
Share Ownership Concentration Risk. To the
extent that a significant portion of the Fund’s shares is held by a limited
number of shareholders or their affiliates, there is a risk that the share
trading activities of these shareholders could disrupt the Fund’s investment
strategies, which could have adverse consequences for the Fund and other
shareholders (e.g., by requiring the Fund to sell investments at inopportune
times or causing the Fund to maintain larger-than-expected cash positions
pending acquisition of investments).
Style Risk. Different investment styles (e.g.,
growth vs. value, quality bias, market capitalization focus) tend to shift in
and out of favor depending on market conditions and investor sentiment, and at
times when the investment style used by the Adviser for the Fund is out of
favor, the Fund may underperform other equity funds that use different
investment styles.
Focus Risk. To the extent that the Fund focuses
its investments in particular industries, asset classes or sectors of the
economy, any market changes affecting companies in those industries, asset
classes or sectors may impact the Fund’s performance.
43
Operational and Technology Risk. Cyber-attacks,
disruptions, or failures that affect the Fund’s service providers,
counterparties, market participants, or issuers of securities held by the Fund
may adversely affect the Fund and its shareholders, including by causing losses
for the Fund or impairing Fund operations.
The
Fund is not intended to be a complete investment program. The Fund is designed
for long-term investors.
The Fund involves a high level of risk and may not be
appropriate for everyone. You should only consider it for the aggressive
portion of your portfolio.
FUND
PERFORMANCE HISTORY: The information below provides some indication of
the risks of investing in the Fund by showing changes in the Fund’s performance
from year to year and by showing how the Fund’s average annual total returns for
the periods indicated compare with those of a broad measure of market
performance that is generally representative of the market sectors or types of
investments in which the Fund invests. The
Fund’s past performance (before and after taxes) does not necessarily indicate
how it will perform in the future. For more recent performance
information, go to www.williamblairfunds.com or
call 1‑800‑635‑2886.
Annual Total
Returns. The bar chart below provides an illustration of how the Fund’s
performance has varied in each of the last ten calendar years for Class N
shares.
|
|
|
| |
|
|
Highest Quarterly Return
24.59% (2Q20) |
|
Lowest Quarterly Return
(19.72)% (2Q22) |
Average Annual Total
Returns (For the periods
ended December 31, 2023). The table below shows returns on a before-tax and
after-tax basis for Class N shares and on a before-tax basis for
Class I and Class R6 shares. After-tax returns for Class I and
Class R6 shares will vary. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. In some instances, the “Return After Taxes on
Distributions and Sale of Fund Shares” may be greater than the “Return Before
Taxes” because the investor is assumed to be able to use the capital loss on the
sale of Fund shares to offset other taxable capital gains.
Actual after-tax returns depend on an investor’s tax situation and may differ
from those shown. After-tax returns are not relevant to investors
who hold their Fund shares through tax-deferred arrangements, such as 401(k)
plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Class N
Shares |
|
|
|
| |
|
|
| |
|
| |
Return
Before Taxes |
|
|
22.67% |
|
|
|
11.77% |
|
|
|
8.36% |
|
Return
After Taxes on Distributions |
|
|
20.82% |
|
|
|
10.36% |
|
|
|
7.06% |
|
Return
After Taxes on Distributions and Sale of Fund Shares |
|
|
14.71% |
|
|
|
9.39% |
|
|
|
6.60% |
|
|
|
| |
Class I
Shares |
|
|
|
| |
|
|
| |
|
| |
Return
Before Taxes |
|
|
22.99% |
|
|
|
12.06% |
|
|
|
8.66% |
|
|
|
| |
Class R6
Shares |
|
|
|
| |
|
|
| |
|
| |
Return
Before Taxes |
|
|
23.13% |
|
|
|
12.12% |
|
|
|
8.73% |
|
|
|
| |
MSCI All
Country World IMI (net) (reflects no deduction for fees,
expenses or taxes) |
|
|
21.58% |
|
|
|
11.49% |
|
|
|
7.77% |
|
44
MANAGEMENT:
Investment Adviser. William Blair Investment
Management, LLC is the investment adviser of the Fund.
Portfolio Managers. Kenneth J. McAtamney and
Hugo Scott-Gall, Partners of the Adviser, co-manage the Fund. Mr. McAtamney
has co-managed the Fund since 2008. Mr. Scott-Gall has co-managed the Fund
since 2021.
PURCHASE
AND SALE OF FUND SHARES:
Class N Share Purchase. The minimum
initial investment for an account generally is $2,500. The minimum subsequent
investment generally is $1,000. Certain exceptions to the minimum initial and
subsequent investment amounts may apply. See “Your Account—Class N Shares”
for additional information on eligibility requirements applicable to purchasing
Class N shares.
Class I Share Purchase. The minimum
initial investment for an account generally is $500,000 (or any lesser amount
if, in William Blair’s opinion, the investor has adequate intent and
availability of funds to reach a future level of investment of $500,000). There
is no minimum for subsequent purchases. There is no minimum initial investment
for qualified retirement plans, including, but not limited to, 401(k) plans, 457
plans, employer-sponsored 403(b) plans, defined benefit plans and other similar
accounts, or plans whereby Class I shares are held through omnibus accounts
(either at the plan level or the level of the plan administrator) and certain
other accounts. William Blair may make certain additional exceptions to the
minimum initial investment amount in its discretion. Class I shares are
only available to certain investors. See “Your Account—Class I Shares” for
additional information on the eligibility requirements and investment minimums
applicable to purchasing Class I shares.
Class R6 Share Purchase. The minimum
initial investment for an account is $1 million (or any lesser amount if,
in William Blair’s opinion, the investor has adequate intent and availability of
funds to reach a future level of investment of $1 million). There is no minimum
for subsequent purchases. There is no minimum initial investment for qualified
retirement plans, including, but not limited to, 401(k) plans, 457 plans,
employer-sponsored 403(b) plans, defined benefit plans and other similar
accounts, or plans whereby Class R6 shares are held through omnibus
accounts (either at the plan level or the level of the plan administrator) and
certain other accounts. William Blair may make certain additional exceptions to
the minimum initial investment amount in its discretion. Class R6 shares
are only available to certain investors. See “Your Account—Class R6 Shares”
for additional information on eligibility requirements and investment minimums
applicable to purchasing Class R6 shares.
Sale. Shares of the Fund are redeemable on any
day the New York Stock Exchange is open for business by mail, wire or telephone,
depending on the elections you make in the account application.
TAX INFORMATION: The Fund intends to make
distributions that may be taxed as ordinary income or capital gains, unless you
are investing through a tax-advantaged investment plan. If you are investing
through a tax-advantaged investment plan, withdrawals from the tax-advantaged
investment plan may be subject to taxes.
PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL
INTERMEDIARIES: If you purchase shares of the Fund through a
broker-dealer or other financial intermediary (such as a bank), the Fund and its
related companies may pay the intermediary for the sale of shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
45
WILLIAM
BLAIR INTERNATIONAL LEADERS FUND |
SUMMARY
|
INVESTMENT
OBJECTIVE: The William Blair International Leaders Fund seeks long-term
capital appreciation.
FEES AND
EXPENSES: This table describes the fees and expenses that you may pay if you
buy, hold and sell shares of the Fund. You may pay other fees, such as brokerage
commissions and other fees to financial intermediaries, which are not reflected
in the tables and examples below.
Shareholder Fees (fees paid directly from your
investment):
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
Class I |
|
|
Class R6 |
|
Maximum
Sales Charge (Load) Imposed on Purchases |
|
|
None |
|
|
|
None |
|
|
|
None |
|
Redemption
Fee |
|
|
None |
|
|
|
None |
|
|
|
None |
|
Annual Fund Operating Expenses (expenses that
you pay each year as a percentage of the value of your investment):
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
Class I |
|
|
Class R6 |
|
Management
Fee |
|
|
0.85% |
|
|
|
0.85% |
|
|
|
0.85% |
|
Distribution
(Rule 12b-1) Fee |
|
|
0.25% |
|
|
|
None |
|
|
|
None |
|
Other
Expenses |
|
|
0.16% |
|
|
|
0.19% |
|
|
|
0.06% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
1.26% |
|
|
|
1.04% |
|
|
|
0.91% |
|
Fee
Waiver and/or Expense Reimbursement* |
|
|
0.11% |
|
|
|
0.14% |
|
|
|
0.06% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
|
|
1.15% |
|
|
|
0.90% |
|
|
|
0.85% |
|
* |
William
Blair Investment Management, LLC (the “Adviser”) has entered into a
contractual agreement with the Fund to waive fees and/or reimburse
expenses in order to limit the Fund’s operating expenses (excluding
interest expenses, taxes, brokerage commissions, acquired fund fees and
expenses, dividend and interest expenses on short sales, other
investment-related costs and extraordinary expenses, such as litigation
and other expenses not incurred in the ordinary course of the Fund’s
business) to 1.15%, 0.90% and 0.85% of average daily net assets for
Class N, Class I and Class R6 shares, respectively, until
April 30, 2025. The Adviser may not terminate this arrangement prior
to April 30, 2025 without
the approval of the Fund’s Board of Trustees.
|
Example: This example is intended to help you compare the cost of investing
in shares of the Fund with the cost of investing in other mutual funds. The
example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
example also assumes that your investment has a 5% return each year and the
Fund’s operating expenses remain the same. The figures reflect the expense
limitation for the first year. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
|
3 Years |
|
|
5 Years |
|
|
10 Years |
|
Class N |
|
|
$117 |
|
|
|
$389 |
|
|
|
$681 |
|
|
|
$1,513 |
|
Class I |
|
|
92 |
|
|
|
317 |
|
|
|
560 |
|
|
|
1,258 |
|
Class R6 |
|
|
87 |
|
|
|
284 |
|
|
|
498 |
|
|
|
1,114 |
|
Portfolio
Turnover: The Fund pays
transaction costs, such as commissions, when it buys and sells securities (or
“turns over” its portfolio). A higher portfolio turnover may indicate higher
transaction costs and may result in
46
higher taxes when Fund shares
are held in a taxable account. These costs, which are not reflected in annual
fund operating expenses or in the example, affect the Fund’s performance. During
the most recent fiscal year, the Fund’s portfolio turnover rate was
50% of the average value of its
portfolio.
PRINCIPAL INVESTMENT
STRATEGIES: Under normal market
conditions, the Fund invests primarily in a diversified portfolio of equity
securities, including common stocks and other forms of equity investments (e.g.,
securities convertible into common stocks), issued by companies of all sizes
domiciled outside the U.S. that the Adviser believes have above-average growth,
profitability and quality characteristics. Under normal market conditions, the
Fund typically holds a limited number of securities (i.e., 40-70 securities). The Adviser seeks
investment opportunities in companies at different stages of development ranging
from large, well-established companies to smaller companies at earlier stages of
development, that are leaders in their country, industry or globally in terms of
products, services or execution. The Fund’s investments are normally allocated
among at least six different countries and no more than 50% of the Fund’s equity
holdings may be invested in securities of issuers in one country at any given
time. Normally, the Fund’s investments will be divided among Continental Europe,
the United Kingdom, Canada, Japan and the markets of the Pacific Basin. The Fund
may invest the greater of 40% of its net assets or twice the emerging markets
component of the MSCI All Country World Ex-U.S. Investable Market Index (IMI)
(net) in emerging markets, which include every country in the world except the
United States, Canada, Japan, Australia, New Zealand, Hong Kong, Singapore and
most Western European countries.
In
choosing investments, the Adviser performs fundamental company analysis and
focuses on stock selection. The Adviser generally seeks equity securities,
including common stocks, of companies that historically have had superior
growth, profitability and quality relative to local markets and relative to
companies within the same industry worldwide, and that are expected to continue
such performance. Such companies generally will exhibit superior business
fundamentals, including leadership in their field, quality products or services,
distinctive marketing and distribution, pricing flexibility and revenue from
products or services consumed on a steady, recurring basis. These business
characteristics should be accompanied by management that is shareholder
return-oriented and that uses conservative accounting policies. Companies with
above-average returns on equity, strong balance sheets and consistent,
above-average earnings growth will be the primary focus. Stock selection will
take into account both local and global comparisons.
The
Adviser will vary the Fund’s sector and geographic diversification based upon
the Adviser’s ongoing evaluation of economic, market and political trends
throughout the world. In making decisions regarding country allocation, the
Adviser will consider such factors as the conditions and growth potential of
various economies and securities markets, currency exchange rates, technological
developments in the various countries and other pertinent financial, social,
national and political factors.
PRINCIPAL
RISKS: The Fund’s
returns will vary, and you could lose money by investing in the
Fund. The following is a summary of the principal risks
associated with an investment in the Fund.
Equity Funds General Risk. Because the Fund
invests substantially all of its assets in equity securities of foreign
companies, the primary risk is that the value of the equity securities it holds
might decrease in response to the activities of an individual company or in
response to general market, business and economic conditions. If this occurs,
the Fund’s share price may also decrease. In addition, there is the risk that
individual securities may not perform as expected or a strategy used by the
Adviser may fail to produce its intended result.
Market Risk. The value of the Fund’s
investments may go up or down, sometimes rapidly or unpredictably. The value of
an investment may decline due to factors affecting securities markets generally
or particular industries represented in the securities markets. The value of an
investment may decline due to general market conditions that are not
specifically related to a particular company, such as real or perceived adverse
economic conditions, recessions, inflation, rapid interest rate changes, changes
in the general outlook for corporate earnings, changes in interest or currency
rates or adverse investor sentiment generally. Events such as war, acts
47
of
terrorism, social unrest, natural disasters, the spread of infectious illness or
other public health threats could also significantly impact the Fund and its
investments. The value of an investment may also decline due to factors that
affect a particular industry or industries, such as labor shortages or increased
production costs and competitive conditions within an industry. During a general
downturn in the securities markets, multiple asset classes may decline in value
simultaneously. Geopolitical and other events may also disrupt securities
markets and adversely affect global economies and markets and thereby decrease
the value of the Fund’s investments.
Foreign Investment Risk. The risks of foreign
investments may include less publicly available information, less stringent
investor protections and disclosure standards, less governmental regulation and
supervision of foreign stock exchanges, brokers and issuers, share registration
and custody, a lack of uniform accounting, auditing and financial reporting
standards, practices and requirements, the possibility of expropriation, seizure
or nationalization, confiscatory taxation, limits on repatriation, adverse
changes in investment or exchange control regulations, political instability,
restrictions on the flow of international capital, imposition of foreign
withholding or other taxes, fluctuating currencies, inflation, difficulty in
obtaining and enforcing judgments against foreign entities or other adverse
political, social or diplomatic developments that could affect the Fund’s
investments. Foreign investments may be less liquid and their prices more
volatile than the securities of U.S. companies. The Fund is expected to incur
operating expenses that are higher than those of mutual funds investing
exclusively in U.S. equity securities due to the higher custodial fees
associated with foreign securities investments.
Currency Risk. The value of the Fund’s
portfolio may be affected by changes in exchange rates or control regulations.
If a local currency gains against the U.S. dollar, the value of the security
increases in U.S. dollar terms. If a local currency declines against the U.S.
dollar, the value of the security decreases in U.S. dollar terms.
Emerging Markets Risk. Foreign investment risk
is typically magnified in emerging markets, which are the less developed and
developing nations.
Geographic Risk. To the extent that the Fund
invests a significant portion of its assets in any one country or geographic
region, the Fund will be subject to greater risk of loss or volatility than if
the Fund always maintained wide geographic diversity among the countries and
geographic regions in which it invests. Investing in any one country or
geographic region makes the Fund more vulnerable to the risks of adverse
securities markets, exchange rates and social, political, regulatory and
economic events in that one country or geographic region.
Smaller Company Risk. Stocks of smaller
companies involve greater risk than those of larger, more established companies.
This is because smaller companies may be in earlier stages of development, may
be dependent on a small number of products or services, may lack substantial
capital reserves and/or do not have proven track records. Smaller companies may
be traded in low volumes. This can increase volatility and increase the risk
that the Fund will not be able to sell a security on short notice at a
reasonable price. The securities of smaller companies may be more volatile and
less liquid than securities of large capitalized companies.
Share Ownership Concentration Risk. To the
extent that a significant portion of the Fund’s shares is held by a limited
number of shareholders or their affiliates, there is a risk that the share
trading activities of these shareholders could disrupt the Fund’s investment
strategies, which could have adverse consequences for the Fund and other
shareholders (e.g., by requiring the Fund to sell investments at inopportune
times or causing the Fund to maintain larger-than-expected cash positions
pending acquisition of investments).
Style Risk. Different investment styles (e.g.,
growth vs. value, quality bias, market capitalization focus) tend to shift in
and out of favor depending on market conditions and investor sentiment, and at
times when the investment style used by the Adviser for the Fund is out of
favor, the Fund may underperform other equity funds that use different
investment styles.
48
Focus Risk. To the extent that the Fund focuses
its investments in particular industries, asset classes or sectors of the
economy, any market changes affecting companies in those industries, asset
classes or sectors may impact the Fund’s performance. In addition, because the
Fund may focus its investments in a limited number of securities, its
performance may be more volatile than a fund that invests in a greater number of
securities.
Operational and Technology Risk. Cyber-attacks,
disruptions, or failures that affect the Fund’s service providers,
counterparties, market participants, or issuers of securities held by the Fund
may adversely affect the Fund and its shareholders, including by causing losses
for the Fund or impairing Fund operations.
The
Fund is not intended to be a complete investment program. The Fund is designed
for long-term investors.
The Fund involves a high level of risk and may not be
appropriate for everyone. You should only consider it for the aggressive
portion of your portfolio.
FUND
PERFORMANCE HISTORY: The information below provides some indication of
the risks of investing in the Fund by showing changes in the Fund’s performance
from year to year and by showing how the Fund’s average annual total returns for
the periods indicated compare with those of a broad measure of market
performance that is generally representative of the market sectors or types of
investments in which the Fund invests. The
Fund’s past performance (before and after taxes) does not necessarily indicate
how it will perform in the future. For more recent performance
information, go to www.williamblairfunds.com or
call 1‑800‑635‑2886.
Annual Total
Returns. The bar chart below provides an illustration of how the Fund’s
performance has varied in each of the last ten calendar years for Class N
shares.
|
|
|
| |
|
|
Highest Quarterly Return
21.43% (2Q20) |
|
Lowest Quarterly Return
(19.24)% (2Q22) |
Average Annual Total
Returns (For the periods
ended December 31, 2023). The table below shows returns on a before-tax and
after-tax basis for Class N shares and on a before-tax basis for
Class I and Class R6 shares. After-tax returns for Class I and
Class R6 shares will vary. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. In some instances,
the “Return After Taxes on Distributions and Sale of Fund Shares” may be greater
than the “Return Before Taxes” because the investor is assumed to be able to use
the capital loss on the sale of Fund
49
shares to offset other taxable
capital gains. Actual after-tax returns depend on an
investor’s tax situation and may differ from those shown. After-tax returns are not relevant to investors
who hold their Fund shares through tax-deferred arrangements, such as 401(k)
plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Class N
Shares |
|
|
|
| |
|
|
| |
|
| |
Return
Before Taxes |
|
|
12.77% |
|
|
|
8.00% |
|
|
|
5.64% |
|
Return
After Taxes on Distributions |
|
|
12.72% |
|
|
|
7.79% |
|
|
|
5.34% |
|
Return
After Taxes on Distributions and Sale of Fund Shares |
|
|
7.60% |
|
|
|
6.33% |
|
|
|
4.48% |
|
|
|
| |
Class I
Shares |
|
|
|
| |
|
|
| |
|
| |
Return
Before Taxes |
|
|
13.09% |
|
|
|
8.26% |
|
|
|
5.90% |
|
|
|
| |
Class R6
Shares |
|
|
|
| |
|
|
| |
|
| |
Return
Before Taxes |
|
|
13.20% |
|
|
|
8.33% |
|
|
|
5.98% |
|
|
|
| |
MSCI All
Country World Ex-US IMI (net) (reflects no deduction for
fees, expenses or taxes) |
|
|
15.62% |
|
|
|
7.18% |
|
|
|
3.97% |
|
MANAGEMENT:
Investment Adviser. William Blair Investment
Management, LLC is the investment adviser of the Fund.
Portfolio Managers. Alaina Anderson, Simon
Fennell and Kenneth J. McAtamney, Partners of the Adviser, co-manage the Fund.
Ms. Anderson has co-managed the Fund since 2021. Mr. Fennell has
co-managed the Fund since 2013. Mr. McAtamney has co-managed the Fund since
its inception in 2012.
PURCHASE
AND SALE OF FUND SHARES:
Class N Share Purchase. The minimum
initial investment for an account generally is $2,500. The minimum subsequent
investment generally is $1,000. Certain exceptions to the minimum initial and
subsequent investment amounts may apply. See “Your Account—Class N Shares”
for additional information on eligibility requirements applicable to purchasing
Class N shares.
Class I Share Purchase. The minimum
initial investment for an account generally is $500,000 (or any lesser amount
if, in William Blair’s opinion, the investor has adequate intent and
availability of funds to reach a future level of investment of $500,000). There
is no minimum for subsequent purchases. There is no minimum initial investment
for qualified retirement plans, including, but not limited to, 401(k) plans, 457
plans, employer-sponsored 403(b) plans, defined benefit plans and other similar
accounts, or plans whereby Class I shares are held through omnibus accounts
(either at the plan level or the level of the plan administrator) and certain
other accounts. William Blair may make certain additional exceptions to the
minimum initial investment amount in its discretion. Class I shares are
only available to certain investors. See “Your Account—Class I Shares” for
additional information on the eligibility requirements and investment minimums
applicable to purchasing Class I shares.
Class R6 Share Purchase. The minimum initial
investment for an account is $1 million (or any lesser amount if, in
William Blair’s opinion, the investor has adequate intent and availability of
funds to reach a future level of investment of $1 million). There is no minimum
for subsequent purchases. There is no minimum initial investment for qualified
retirement plans, including, but not limited to, 401(k) plans, 457 plans,
employer-sponsored 403(b) plans, defined benefit plans and other similar
accounts, or plans whereby Class R6 shares are held through omnibus
accounts (either at the plan level or the level of the plan administrator) and
certain other accounts. William Blair may make certain additional exceptions to
the minimum initial investment amount in its
50
discretion.
Class R6 shares are only available to certain investors. See “Your
Account—Class R6 Shares” for additional information on eligibility
requirements and investment minimums applicable to purchasing Class R6
shares.
Sale. Shares of the Fund are redeemable on any
day the New York Stock Exchange is open for business by mail, wire or telephone,
depending on the elections you make in the account application.
TAX INFORMATION: The Fund intends to make
distributions that may be taxed as ordinary income or capital gains, unless you
are investing through a tax-advantaged investment plan. If you are investing
through a tax-advantaged investment plan, withdrawals from the tax-advantaged
investment plan may be subject to taxes.
PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL
INTERMEDIARIES: If you purchase shares of the Fund through a
broker-dealer or other financial intermediary (such as a bank), the Fund and its
related companies may pay the intermediary for the sale of shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
51
WILLIAM
BLAIR INTERNATIONAL GROWTH FUND |
SUMMARY
|
INVESTMENT
OBJECTIVE: The William Blair International Growth Fund seeks long-term
capital appreciation.
FEES AND
EXPENSES: This table describes the fees and expenses that you may pay if you
buy, hold and sell shares of the Fund. You may pay other fees, such as brokerage
commissions and other fees to financial intermediaries, which are not reflected
in the tables and examples below.
Shareholder Fees (fees paid directly from your
investment):
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
Class I |
|
|
Class R6 |
|
Maximum
Sales Charge (Load) Imposed on Purchases |
|
|
None |
|
|
|
None |
|
|
|
None |
|
Redemption
Fee |
|
|
None |
|
|
|
None |
|
|
|
None |
|
Annual Fund Operating Expenses (expenses that
you pay each year as a percentage of the value of your investment):
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
Class I |
|
|
Class R6 |
|
Management
Fee |
|
|
0.94% |
|
|
|
0.94% |
|
|
|
0.94% |
|
Distribution
(Rule 12b-1) Fee |
|
|
0.25% |
|
|
|
None |
|
|
|
None |
|
Other
Expenses |
|
|
0.20% |
|
|
|
0.16% |
|
|
|
0.06% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
1.39% |
|
|
|
1.10% |
|
|
|
1.00% |
|
Fee
Waiver and/or Expense Reimbursement* |
|
|
0.15% |
|
|
|
0.11% |
|
|
|
0.06% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
|
|
1.24% |
|
|
|
0.99% |
|
|
|
0.94% |
|
* |
William
Blair Investment Management, LLC (the “Adviser”) has entered into a
contractual agreement with the Fund to waive fees and/or reimburse
expenses in order to limit the Fund’s operating expenses (excluding
interest expenses, taxes, brokerage commissions, acquired fund fees and
expenses, dividend and interest expenses on short sales, other
investment-related costs and extraordinary expenses, such as litigation
and other expenses not incurred in the ordinary course of the Fund’s
business) to 1.24%, 0.99% and 0.94% of average daily net assets for
Class N, Class I and Class R6 shares, respectively, until
April 30, 2025. The Adviser may not terminate this arrangement prior
to April 30, 2025 without
the approval of the Fund’s Board of Trustees.
|
Example: This example is intended to help you compare the cost of investing
in shares of the Fund with the cost of investing in other mutual funds. The
example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
example also assumes that your investment has a 5% return each year and the
Fund’s operating expenses remain the same. The figures reflect the expense
limitation for the first year. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
|
3 Years |
|
|
5 Years |
|
|
10 Years |
|
Class N |
|
|
$126 |
|
|
|
$425 |
|
|
|
$746 |
|
|
|
$1,656 |
|
Class I |
|
|
101 |
|
|
|
339 |
|
|
|
596 |
|
|
|
1,330 |
|
Class R6 |
|
|
96 |
|
|
|
312 |
|
|
|
547 |
|
|
|
1,219 |
|
52
Portfolio
Turnover: The Fund pays transaction costs, such as commissions, when it buys
and sells securities (or “turns over” its portfolio). A higher portfolio
turnover may indicate higher transaction costs and may result in higher taxes
when Fund shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example, affect the Fund’s
performance. During the most recent fiscal year, the Fund’s portfolio turnover
rate was 42% of the average value of its
portfolio.
PRINCIPAL INVESTMENT
STRATEGIES: Under normal market
conditions, the Fund invests at least 80% of its total assets in a diversified
portfolio of equity securities, including common stocks and other forms of
equity investments (e.g., securities convertible into common stocks), issued by
companies of all sizes domiciled outside the U.S. that the Adviser believes have
above-average growth, profitability and quality characteristics. The Adviser
seeks investment opportunities in companies at different stages of development
ranging from large, well-established companies to smaller companies at earlier
stages of development. The Fund’s investments are normally allocated among at
least six different countries and no more than 50% of the Fund’s equity holdings
may be invested in securities of issuers in one country at any given time.
Normally, the Fund’s investments will be divided among Continental Europe, the
United Kingdom, Canada, Japan and the markets of the Pacific Basin. The Fund may
invest the greater of 35% of its net assets or twice the emerging markets
component of the MSCI All Country World Ex-U.S. Investable Market Index (IMI)
(net) in emerging markets, which include every country in the world except the
United States, Canada, Japan, Australia, New Zealand, Hong Kong, Singapore and
most Western European countries.
In
choosing investments, the Adviser performs fundamental company analysis and
focuses on stock selection. The Adviser generally seeks equity securities,
including common stocks, of companies that historically have had superior
growth, profitability and quality relative to local markets and relative to
companies within the same industry worldwide, and that are expected to continue
such performance. Such companies generally will exhibit superior business
fundamentals, including leadership in their field, quality products or services,
distinctive marketing and distribution, pricing flexibility and revenue from
products or services consumed on a steady, recurring basis. These business
characteristics should be accompanied by management that is shareholder
return-oriented and that uses conservative accounting policies. Companies with
above-average returns on equity, strong balance sheets and consistent,
above-average earnings growth will be the primary focus. Stock selection will
take into account both local and global comparisons.
The
Adviser will vary the Fund’s sector and geographic diversification based upon
the Adviser’s ongoing evaluation of economic, market and political trends
throughout the world. In making decisions regarding country allocation, the
Adviser will consider such factors as the conditions and growth potential of
various economies and securities markets, currency exchange rates, technological
developments in the various countries and other pertinent financial, social,
national and political factors.
PRINCIPAL
RISKS: The Fund’s
returns will vary, and you could lose money by investing in the
Fund. The following is a summary of the principal risks
associated with an investment in the Fund.
Equity Funds General Risk. Because the Fund
invests substantially all of its assets in equity securities of foreign
companies, the primary risk is that the value of the equity securities it holds
might decrease in response to the activities of an individual company or in
response to general market, business and economic conditions. If this occurs,
the Fund’s share price may also decrease. In addition, there is the risk that
individual securities may not perform as expected or a strategy used by the
Adviser may fail to produce its intended result.
Market Risk. The value of the Fund’s
investments may go up or down, sometimes rapidly or unpredictably. The value of
an investment may decline due to factors affecting securities markets generally
or particular industries represented in the securities markets. The value of an
investment may decline due to general market conditions that are not
specifically related to a particular company, such as real or perceived adverse
economic conditions, recessions, inflation, rapid interest rate changes, changes
in the general outlook for corporate earnings, changes in interest or currency
rates or adverse investor sentiment generally. Events such as war, acts
53
of
terrorism, social unrest, natural disasters, the spread of infectious illness or
other public health threats could also significantly impact the Fund and its
investments. The value of an investment may also decline due to factors that
affect a particular industry or industries, such as labor shortages or increased
production costs and competitive conditions within an industry. During a general
downturn in the securities markets, multiple asset classes may decline in value
simultaneously. Geopolitical and other events may also disrupt securities
markets and adversely affect global economies and markets and thereby decrease
the value of the Fund’s investments.
Foreign Investment Risk. The risks of foreign
investments may include less publicly available information, less stringent
investor protections and disclosure standards, less governmental regulation and
supervision of foreign stock exchanges, brokers and issuers, share registration
and custody, a lack of uniform accounting, auditing and financial reporting
standards, practices and requirements, the possibility of expropriation, seizure
or nationalization, confiscatory taxation, limits on repatriation, adverse
changes in investment or exchange control regulations, political instability,
restrictions on the flow of international capital, imposition of foreign
withholding or other taxes, fluctuating currencies, inflation, difficulty in
obtaining and enforcing judgments against foreign entities or other adverse
political, social or diplomatic developments that could affect the Fund’s
investments. Foreign investments may be less liquid and their prices more
volatile than the securities of U.S. companies. The Fund is expected to incur
operating expenses that are higher than those of mutual funds investing
exclusively in U.S. equity securities due to the higher custodial fees
associated with foreign securities investments.
Currency Risk. The value of the Fund’s
portfolio may be affected by changes in exchange rates or control regulations.
If a local currency gains against the U.S. dollar, the value of the security
increases in U.S. dollar terms. If a local currency declines against the U.S.
dollar, the value of the security decreases in U.S. dollar terms.
Emerging Markets Risk. Foreign investment risk
is typically magnified in emerging markets, which are the less developed and
developing nations.
Geographic Risk. To the extent that the Fund
invests a significant portion of its assets in any one country or geographic
region, the Fund will be subject to greater risk of loss or volatility than if
the Fund always maintained wide geographic diversity among the countries and
geographic regions in which it invests. Investing in any one country or
geographic region makes the Fund more vulnerable to the risks of adverse
securities markets, exchange rates and social, political, regulatory and
economic events in that one country or geographic region.
Smaller Company Risk. Stocks of smaller
companies involve greater risk than those of larger, more established companies.
This is because smaller companies may be in earlier stages of development, may
be dependent on a small number of products or services, may lack substantial
capital reserves and/or do not have proven track records. Smaller companies may
be traded in low volumes. This can increase volatility and increase the risk
that the Fund will not be able to sell a security on short notice at a
reasonable price. The securities of smaller companies may be more volatile and
less liquid than securities of large capitalized companies.
Share Ownership Concentration Risk. To the
extent that a significant portion of the Fund’s shares is held by a limited
number of shareholders or their affiliates, there is a risk that the share
trading activities of these shareholders could disrupt the Fund’s investment
strategies, which could have adverse consequences for the Fund and other
shareholders (e.g., by requiring the Fund to sell investments at inopportune
times or causing the Fund to maintain larger-than-expected cash positions
pending acquisition of investments).
Style Risk. Different investment styles (e.g.,
growth vs. value, quality bias, market capitalization focus) tend to shift in
and out of favor depending on market conditions and investor sentiment, and at
times when the growth investment style used by the Adviser for the Fund is out
of favor, the Fund may underperform other equity funds that use different
investment styles.
54
Focus Risk. To the extent that the Fund focuses
its investments in particular industries, asset classes or sectors of the
economy, any market changes affecting companies in those industries, asset
classes or sectors may impact the Fund’s performance.
Operational and Technology Risk. Cyber-attacks,
disruptions, or failures that affect the Fund’s service providers,
counterparties, market participants, or issuers of securities held by the Fund
may adversely affect the Fund and its shareholders, including by causing losses
for the Fund or impairing Fund operations.
The
Fund is not intended to be a complete investment program. The Fund is designed
for long-term investors.
The Fund involves a high level of risk and may not be
appropriate for everyone. You should only consider it for the aggressive
portion of your portfolio.
FUND
PERFORMANCE HISTORY: The information below provides some indication of
the risks of investing in the Fund by showing changes in the Fund’s performance
from year to year and by showing how the Fund’s average annual total returns for
the periods indicated compare with those of a broad measure of market
performance that is generally representative of the market sectors or types of
investments in which the Fund invests. The
Fund’s past performance (before and after taxes) does not necessarily indicate
how it will perform in the future. For more recent performance
information, go to www.williamblairfunds.com or
call 1‑800‑635‑2886.
Annual Total
Returns. The bar chart below provides an illustration of how the Fund’s
performance has varied in each of the last ten calendar years for Class N
shares.
|
|
|
| |
|
|
Highest Quarterly Return
25.20% (2Q20) |
|
Lowest Quarterly Return
(19.91)% (1Q20) |
Average Annual Total
Returns (For the periods
ended December 31, 2023). The table below shows returns on a before-tax and
after-tax basis for Class N shares and on a before-tax basis for
Class I and Class R6 shares. After-tax returns for Class I and
Class R6 shares will vary. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. In some instances, the “Return After Taxes on
Distributions and Sale of Fund Shares” may be greater than the “Return Before
Taxes” because the investor is assumed to be able to use the capital loss on the
sale of Fund shares to offset other taxable capital gains.
Actual after-tax returns depend on an investor’s tax situation and
may
55
differ
from those shown. After-tax returns are not relevant to investors
who hold their Fund shares through tax-deferred arrangements, such as 401(k)
plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Class N
Shares |
|
|
|
| |
|
|
| |
|
| |
Return
Before Taxes |
|
|
15.12% |
|
|
|
8.93% |
|
|
|
4.29% |
|
Return
After Taxes on Distributions |
|
|
14.20% |
|
|
|
7.70% |
|
|
|
3.38% |
|
Return
After Taxes on Distributions and Sale of Fund Shares |
|
|
9.58% |
|
|
|
7.08% |
|
|
|
3.32% |
|
|
|
| |
Class I
Shares |
|
|
|
| |
|
|
| |
|
| |
Return
Before Taxes |
|
|
15.38% |
|
|
|
9.23% |
|
|
|
4.60% |
|
|
|
| |
MSCI All
Country World Ex-U.S. IMI (net) (reflects no deduction for
fees, expenses or taxes) |
|
|
15.62% |
|
|
|
7.18% |
|
|
|
3.97% |
|
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
|
Since Share Class Inception (May 2,
2019) |
|
Class R6
Shares |
|
|
|
| |
|
| |
Return
Before Taxes |
|
|
15.47% |
|
|
|
6.36% |
|
|
| |
MSCI All
Country World Ex-U.S. IMI (net) (reflects no deduction for
fees, expenses or taxes) |
|
|
15.62% |
|
|
|
4.86% |
|
MANAGEMENT:
Investment Adviser. William Blair Investment
Management, LLC is the investment adviser of the Fund.
Portfolio Managers. Simon Fennell, Kenneth J.
McAtamney and Andrew Siepker, Partners of the Adviser, co‑manage the Fund.
Mr. Fennell has co-managed the Fund since 2013. Mr. McAtamney has
co-managed the Fund since 2017. Mr. Siepker has co-managed the Fund since
2022.
PURCHASE
AND SALE OF FUND SHARES:
Class N Share Purchase. The minimum
initial investment for an account generally is $2,500. The minimum subsequent
investment generally is $1,000. Certain exceptions to the minimum initial and
subsequent investment amounts may apply. See “Your Account—Class N Shares”
for additional information on eligibility requirements applicable to purchasing
Class N shares.
Class I Share Purchase. The minimum
initial investment for an account generally is $500,000 (or any lesser amount
if, in William Blair’s opinion, the investor has adequate intent and
availability of funds to reach a future level of investment of $500,000). There
is no minimum for subsequent purchases. There is no minimum initial investment
for qualified retirement plans, including, but not limited to, 401(k) plans, 457
plans, employer-sponsored 403(b) plans, defined benefit plans and other similar
accounts, or plans whereby Class I shares are held through omnibus accounts
(either at the plan level or the level of the plan administrator) and certain
other accounts. William Blair may make certain additional exceptions to the
minimum initial investment amount in its discretion. Class I shares are
only available to certain investors. See “Your Account—Class I Shares” for
additional information on the eligibility requirements and investment minimums
applicable to purchasing Class I shares.
Class R6 Share Purchase. The minimum
initial investment for an account is $1 million (or any lesser amount if,
in William Blair’s opinion, the investor has adequate intent and availability of
funds to reach a future level of
56
investment
of $1 million). There is no minimum for subsequent purchases. There is no
minimum initial investment for qualified retirement plans, including, but not
limited to, 401(k) plans, 457 plans, employer-sponsored 403(b) plans, defined
benefit plans and other similar accounts, or plans whereby Class R6 shares
are held through omnibus accounts (either at the plan level or the level of the
plan administrator) and certain other accounts. William Blair may make certain
additional exceptions to the minimum initial investment amount in its
discretion. Class R6 shares are only available to certain investors. See
“Your Account—Class R6 Shares” for additional information on eligibility
requirements and investment minimums applicable to purchasing Class R6
shares.
Sale. Shares of the Fund are redeemable on any
day the New York Stock Exchange is open for business by mail, wire or telephone,
depending on the elections you make in the account application.
TAX INFORMATION: The Fund intends to make
distributions that may be taxed as ordinary income or capital gains, unless you
are investing through a tax-advantaged investment plan. If you are investing
through a tax-advantaged investment plan, withdrawals from the tax-advantaged
investment plan may be subject to taxes.
PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL
INTERMEDIARIES: If you purchase shares of the Fund through a
broker-dealer or other financial intermediary (such as a bank), the Fund and its
related companies may pay the intermediary for the sale of shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
57
WILLIAM
BLAIR INSTITUTIONAL INTERNATIONAL GROWTH FUND |
SUMMARY
|
INVESTMENT
OBJECTIVE: The William Blair Institutional International Growth Fund seeks
long-term capital appreciation.
FEES AND
EXPENSES: This table describes the fees and expenses that you may pay if you
buy, hold and sell shares of the Fund. You may pay other fees, such as brokerage
commissions and other fees to financial intermediaries, which are not reflected
in the tables and examples below.
Shareholder Fees (fees paid directly from your
investment):
|
|
|
| |
Maximum
Sales Charge (Load) Imposed on Purchases |
|
|
None |
|
Redemption
Fee |
|
|
None |
|
Annual Fund Operating Expenses (expenses that
you pay each year as a percentage of the value of your investment):
|
|
|
| |
Management
Fee |
|
|
0.94% |
|
Distribution
(Rule 12b-1) Fee |
|
|
None |
|
Other
Expenses |
|
|
0.06% |
|
| |
|
|
|
Total
Annual Fund Operating Expenses |
|
|
1.00% |
|
Fee
Waiver and/or Expense Reimbursement* |
|
|
0.06% |
|
| |
|
|
|
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
|
|
0.94% |
|
* |
William
Blair Investment Management, LLC (the “Adviser”) has entered into a
contractual agreement with the Fund to waive fees and/or reimburse
expenses in order to limit the Fund’s operating expenses (excluding
interest expenses, taxes, brokerage commissions, acquired fund fees and
expenses, dividend and interest expenses on short sales, other
investment-related costs and extraordinary expenses, such as litigation
and other expenses not incurred in the ordinary course of the Fund’s
business) to 0.94% of average daily net assets for shares until
April 30, 2025. The Adviser may not terminate this arrangement prior
to April 30, 2025 without
the approval of the Fund’s Board of Trustees.
|
Example: This example is intended to help you compare the cost of investing
in shares of the Fund with the cost of investing in other mutual funds. The
example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
example also assumes that your investment has a 5% return each year and the
Fund’s operating expenses remain the same. The figures reflect the expense
limitation for the first year. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
1 Year |
|
|
3 Years |
|
|
5 Years |
|
|
10 Years |
|
|
$96 |
|
|
|
$312 |
|
|
|
$547 |
|
|
|
$1,219 |
|
Portfolio
Turnover: The Fund pays transaction costs, such as commissions, when it buys
and sells securities (or “turns over” its portfolio). A higher portfolio
turnover may indicate higher transaction costs and may result in higher taxes
when Fund shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example, affect the Fund’s
performance. During the most recent fiscal year, the Fund’s portfolio turnover
rate was 44% of the average value of its
portfolio.
PRINCIPAL INVESTMENT
STRATEGIES: Under normal market
conditions, the Fund invests at least 80% of its total assets in a diversified
portfolio of equity securities, including common stocks and other forms
of
58
equity
investments (e.g., securities convertible into common stocks), issued by
companies of all sizes domiciled outside the U.S. that the Adviser believes have
above-average growth, profitability and quality characteristics. The Adviser
seeks investment opportunities in companies at different stages of development
ranging from large, well-established companies to smaller companies at earlier
stages of development. The Fund’s investments are normally allocated among at
least six different countries and no more than 50% of the Fund’s equity holdings
may be invested in securities of issuers in one country at any given time.
Normally, the Fund’s investments will be divided among Continental Europe, the
United Kingdom, Canada, Japan and the markets of the Pacific Basin. The Fund may
invest the greater of 35% of its net assets or twice the emerging markets
component of the MSCI All Country World Ex-U.S. Investable Market Index (IMI)
(net) in emerging markets, which include every country in the world except the
United States, Canada, Japan, Australia, New Zealand, Hong Kong, Singapore and
most Western European countries.
In
choosing investments, the Adviser performs fundamental company analysis and
focuses on stock selection. The Adviser generally seeks equity securities,
including common stocks, of companies that historically have had superior
growth, profitability and quality relative to local markets and relative to
companies within the same industry worldwide, and that are expected to continue
such performance. Such companies generally will exhibit superior business
fundamentals, including leadership in their field, quality products or services,
distinctive marketing and distribution, pricing flexibility and revenue from
products or services consumed on a steady, recurring basis. These business
characteristics should be accompanied by management that is shareholder
return-oriented and that uses conservative accounting policies. Companies with
above-average returns on equity, strong balance sheets and consistent,
above-average earnings growth will be the primary focus. Stock selection will
take into account both local and global comparisons.
The
Adviser will vary the Fund’s sector and geographic diversification based upon
the Adviser’s ongoing evaluation of economic, market and political trends
throughout the world. In making decisions regarding country allocation, the
Adviser will consider such factors as the conditions and growth potential of
various economies and securities markets, currency exchange rates, technological
developments in the various countries and other pertinent financial, social,
national and political factors.
PRINCIPAL
RISKS: The Fund’s
returns will vary, and you could lose money by investing in the
Fund. The following is a summary of the principal risks
associated with an investment in the Fund.
Equity Funds General Risk. Because the Fund
invests substantially all of its assets in equity securities of foreign
companies, the primary risk is that the value of the equity securities it holds
might decrease in response to the activities of an individual company or in
response to general market, business and economic conditions. If this occurs,
the Fund’s share price may also decrease. In addition, there is the risk that
individual securities may not perform as expected or a strategy used by the
Adviser may fail to produce its intended result.
Market Risk. The value of the Fund’s
investments may go up or down, sometimes rapidly or unpredictably. The value of
an investment may decline due to factors affecting securities markets generally
or particular industries represented in the securities markets. The value of an
investment may decline due to general market conditions that are not
specifically related to a particular company, such as real or perceived adverse
economic conditions, recessions, inflation, rapid interest rate changes, changes
in the general outlook for corporate earnings, changes in interest or currency
rates or adverse investor sentiment generally. Events such as war, acts of
terrorism, social unrest, natural disasters, the spread of infectious illness or
other public health threats could also significantly impact the Fund and its
investments. The value of an investment may also decline due to factors that
affect a particular industry or industries, such as labor shortages or increased
production costs and competitive conditions within an industry. During a general
downturn in the securities markets, multiple asset classes may decline in value
simultaneously. Geopolitical and other events may also disrupt securities
markets and adversely affect global economies and markets and thereby decrease
the value of the Fund’s investments.
59
Foreign Investment Risk. The risks of foreign
investments may include less publicly available information, less stringent
investor protections and disclosure standards, less governmental regulation and
supervision of foreign stock exchanges, brokers and issuers, share registration
and custody, a lack of uniform accounting, auditing and financial reporting
standards, practices and requirements, the possibility of expropriation, seizure
or nationalization, confiscatory taxation, limits on repatriation, adverse
changes in investment or exchange control regulations, political instability,
restrictions on the flow of international capital, imposition of foreign
withholding or other taxes, fluctuating currencies, inflation, difficulty in
obtaining and enforcing judgments against foreign entities or other adverse
political, social or diplomatic developments that could affect the Fund’s
investments. Foreign investments may be less liquid and their prices more
volatile than the securities of U.S. companies. The Fund is expected to incur
operating expenses that are higher than those of mutual funds investing
exclusively in U.S. equity securities due to the higher custodial fees
associated with foreign securities investments.
Currency Risk. The value of the Fund’s
portfolio may be affected by changes in exchange rates or control regulations.
If a local currency gains against the U.S. dollar, the value of the security
increases in U.S. dollar terms. If a local currency declines against the U.S.
dollar, the value of the security decreases in U.S. dollar terms.
Emerging Markets Risk. Foreign investment risk
is typically magnified in emerging markets, which are the less developed and
developing nations.
Geographic Risk. To the extent that the Fund
invests a significant portion of its assets in any one country or geographic
region, the Fund will be subject to greater risk of loss or volatility than if
the Fund always maintained wide geographic diversity among the countries and
geographic regions in which it invests. Investing in any one country or
geographic region makes the Fund more vulnerable to the risks of adverse
securities markets, exchange rates and social, political, regulatory and
economic events in that one country or geographic region.
Smaller Company Risk. Stocks of smaller
companies involve greater risk than those of larger, more established companies.
This is because smaller companies may be in earlier stages of development, may
be dependent on a small number of products or services, may lack substantial
capital reserves and/or do not have proven track records. Smaller companies may
be traded in low volumes. This can increase volatility and increase the risk
that the Fund will not be able to sell a security on short notice at a
reasonable price. The securities of smaller companies may be more volatile and
less liquid than securities of large capitalized companies.
Share Ownership Concentration Risk. To the
extent that a significant portion of the Fund’s shares is held by a limited
number of shareholders or their affiliates, there is a risk that the share
trading activities of these shareholders could disrupt the Fund’s investment
strategies, which could have adverse consequences for the Fund and other
shareholders (e.g., by requiring the Fund to sell investments at inopportune
times or causing the Fund to maintain larger-than-expected cash positions
pending acquisition of investments).
Style Risk. Different investment styles (e.g.,
growth vs. value, quality bias, market capitalization focus) tend to shift in
and out of favor depending on market conditions and investor sentiment, and at
times when the growth investment style used by the Adviser for the Fund is out
of favor, the Fund may underperform other equity funds that use different
investment styles.
Focus Risk. To the extent that the Fund focuses
its investments in particular industries, asset classes or sectors of the
economy, any market changes affecting companies in those industries, asset
classes or sectors may impact the Fund’s performance.
Operational and Technology Risk. Cyber-attacks,
disruptions, or failures that affect the Fund’s service providers,
counterparties, market participants, or issuers of securities held by the Fund
may adversely affect the Fund and its shareholders, including by causing losses
for the Fund or impairing Fund operations.
60
The
Fund is not intended to be a complete investment program. The Fund is designed
for long-term investors.
The Fund involves a high level of risk and may not be
appropriate for everyone. You should only consider it for the aggressive
portion of your portfolio.
FUND
PERFORMANCE HISTORY: The information below provides some indication of
the risks of investing in the Fund by showing changes in the Fund’s performance
from year to year and by showing how the Fund’s average annual total returns for
the periods indicated compare with those of a broad measure of market
performance that is generally representative of the market sectors or types of
investments in which the Fund invests. The
Fund’s past performance (before and after taxes) does not necessarily indicate
how it will perform in the future. For more recent performance
information, go to www.williamblairfunds.com or
call 1‑800‑635‑2886.
Annual Total
Returns. The bar chart below provides an illustration of how the Fund’s
performance has varied in each of the last ten calendar years.
|
|
|
| |
|
|
Highest Quarterly
Return
25.41% (2Q20) |
|
Lowest Quarterly
Return
(19.71)% (1Q20) |
Average Annual Total
Returns (For the periods
ended December 31, 2023). The table below shows returns on a before-tax and after-tax basis.
After-tax returns are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. In some instances, the “Return After Taxes on
Distributions and Sale of Fund Shares” may be greater than the “Return Before
Taxes” because the investor is assumed to be able to use the capital loss on the
sale of Fund shares to offset other taxable capital gains.
Actual after-tax returns depend on an investor’s tax situation and may differ
from those shown. After-tax returns are not relevant to investors
who hold their Fund shares through tax-deferred arrangements, such as 401(k)
plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Return
Before Taxes |
|
|
15.20% |
|
|
|
9.38% |
|
|
|
4.75% |
|
Return
After Taxes on Distributions |
|
|
14.51% |
|
|
|
7.49% |
|
|
|
3.13% |
|
Return
After Taxes on Distributions and Sale of Fund Shares |
|
|
9.47% |
|
|
|
7.50% |
|
|
|
3.58% |
|
|
|
| |
MSCI All
Country World Ex-U.S. IMI (net) (reflects no deduction for
fees, expenses or taxes) |
|
|
15.62% |
|
|
|
7.18% |
|
|
|
3.97% |
|
MANAGEMENT:
Investment Adviser. William Blair Investment
Management, LLC is the investment adviser of the Fund.
Portfolio Managers. Simon Fennell, Kenneth J.
McAtamney and Andrew Siepker, Partners of the Adviser, co‑manage the Fund.
Mr. Fennell has co-managed the Fund since 2013. Mr. McAtamney has
co-managed the Fund since 2017. Mr. Siepker has co-managed the Fund since
2022.
61
PURCHASE
AND SALE OF FUND SHARES:
Purchase. The minimum initial investment is $5
million. There is no minimum for subsequent purchases. The Distributor reserves
the right to offer shares without regard to the minimum purchase amount
requirements to qualified or non-qualified employee benefit plans when an
unaffiliated third party provides administrative and/or other support services
to the plan. Certain exceptions to the minimum initial investment amount may
apply. Shares are only available to certain investors. See “Your
Account—Institutional Class Shares” for additional information on eligibility
requirements applicable to purchasing shares.
Sale. Shares of the Fund are redeemable on any
day the New York Stock Exchange is open for business by mail, wire or telephone,
depending on the elections you make in the account application.
TAX INFORMATION: The Fund intends to make
distributions that may be taxed as ordinary income or capital gains, unless you
are investing through a tax-advantaged investment plan. If you are investing
through a tax-advantaged investment plan, withdrawals from the tax-advantaged
investment plan may be subject to taxes.
PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL
INTERMEDIARIES: If you purchase shares of the Fund through a
broker-dealer or other financial intermediary (such as a bank), the Fund and its
related companies may pay the intermediary for the sale of shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
62
WILLIAM
BLAIR INTERNATIONAL SMALL CAP GROWTH FUND |
SUMMARY
|
INVESTMENT
OBJECTIVE: The William Blair International Small Cap Growth Fund seeks
long-term capital appreciation.
FEES AND
EXPENSES: This table describes the fees and expenses that you may pay if you
buy, hold and sell shares of the Fund. You may pay other fees, such as brokerage
commissions and other fees to financial intermediaries, which are not reflected
in the tables and examples below.
Shareholder Fees (fees paid directly from your
investment):
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
Class I |
|
|
Class R6 |
|
Maximum
Sales Charge (Load) Imposed on Purchases |
|
|
None |
|
|
|
None |
|
|
|
None |
|
Redemption
Fee |
|
|
None |
|
|
|
None |
|
|
|
None |
|
Annual Fund Operating Expenses (expenses that
you pay each year as a percentage of the value of your investment):
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
Class I |
|
|
Class R6 |
|
Management
Fee |
|
|
1.00% |
|
|
|
1.00% |
|
|
|
1.00% |
|
Distribution
(Rule 12b-1) Fee |
|
|
0.25% |
|
|
|
None |
|
|
|
None |
|
Other
Expenses |
|
|
0.28% |
|
|
|
0.25% |
|
|
|
0.15% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
1.53% |
|
|
|
1.25% |
|
|
|
1.15% |
|
Fee
Waiver and/or Expense Reimbursement* |
|
|
0.18% |
|
|
|
0.15% |
|
|
|
0.10% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement** |
|
|
1.35% |
|
|
|
1.10% |
|
|
|
1.05% |
|
* |
William
Blair Investment Management, LLC (the “Adviser”) has entered into a
contractual agreement with the Fund to waive fees and/or reimburse
expenses in order to limit the Fund’s operating expenses (excluding
interest expenses, taxes, brokerage commissions, acquired fund fees and
expenses, dividend and interest expenses on short sales, other
investment-related costs and extraordinary expenses, such as litigation
and other expenses not incurred in the ordinary course of the Fund’s
business) to 1.35%, 1.10% and 1.05% of average daily net assets for Class
N, Class I and Class R6 shares, respectively, until April 30, 2025.
The Adviser may not terminate this arrangement prior to April 30, 2025 without
the approval of the Fund’s Board of Trustees.
|
** |
The
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement does not equal the net expense ratio to average daily net
assets in the Financial Highlights section of this Prospectus as a result
of a change in the contractual expense limits.
|
Example: This example is intended to help you compare the cost of
investing in shares of the Fund with the cost of investing in other mutual
funds. The example assumes that you invest $10,000 in the Fund for the time
periods indicated and then redeem all of your shares at the end of those
periods. The example also assumes that your investment has a 5% return each year
and the Fund’s operating expenses remain the same. The figures reflect the
expense limitation for the first year. Although your actual costs may be higher
or lower, based on these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
|
3 Years |
|
|
5 Years |
|
|
10 Years |
|
Class N |
|
|
$137 |
|
|
|
$466 |
|
|
|
$817 |
|
|
|
$1,808 |
|
Class I |
|
|
112 |
|
|
|
382 |
|
|
|
672 |
|
|
|
1,498 |
|
Class R6 |
|
|
107 |
|
|
|
355 |
|
|
|
623 |
|
|
|
1,389 |
|
63
Portfolio
Turnover: The Fund pays transaction costs, such as commissions, when it
buys and sells securities (or “turns over” its portfolio). A higher portfolio
turnover may indicate higher transaction costs and may result in higher taxes
when Fund shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example, affect the Fund’s
performance. During the most recent fiscal year, the Fund’s portfolio turnover
rate was 37% of the average value of its
portfolio.
PRINCIPAL INVESTMENT
STRATEGIES: Under normal market
conditions, the Fund invests at least 80% of its net assets (plus the amount of
any borrowings for investment purposes) in stocks of small capitalization
(“small cap”) companies. The Fund invests primarily in a diversified portfolio
of equity securities, including common stocks and other forms of equity
investments (e.g., securities convertible into common stocks), issued by foreign
small cap companies that the Adviser believes have above-average growth,
profitability and quality characteristics. For purposes of the Fund, William
Blair Investment Management, LLC (the “Adviser”) considers a company to be a
small cap company if it has a float adjusted market capitalization at the time
of purchase of $5 billion or less. Securities of companies whose float
adjusted market capitalizations no longer meet this definition of small cap
company after purchase may continue to be held in the Fund. The Fund’s
investments are normally allocated among at least six different countries and no
more than 50% of the Fund’s equity holdings may be invested in securities of
issuers in one country at any given time. Normally, the Fund’s investments will
be divided among Continental Europe, the United Kingdom, Canada, Japan and the
markets of the Pacific Basin. The Fund may invest the greater of 35% of its net
assets or twice the emerging markets component of the MSCI All Country World
Ex-U.S. Small Cap Index (net) in emerging markets, which include every country
in the world except the United States, Canada, Japan, Australia, New Zealand,
Hong Kong, Singapore and most Western European countries.
In
choosing investments, the Adviser performs fundamental company analysis and
focuses on stock selection. The Adviser generally seeks equity securities,
including common stocks, of companies that historically have had superior
growth, profitability and quality relative to local markets and relative to
companies within the same industry worldwide, and that are expected to continue
such performance. Such companies generally will exhibit superior business
fundamentals, including leadership in their field, quality products or services,
distinctive marketing and distribution, pricing flexibility and revenue from
products or services consumed on a steady, recurring basis. These business
characteristics should be accompanied by management that is shareholder
return-oriented and that uses conservative accounting policies. Companies with
above-average returns on equity, strong balance sheets and consistent,
above-average earnings growth will be the primary focus. Stock selection will
take into account both local and global comparisons.
The
Adviser will vary the Fund’s sector and geographic diversification based upon
the Adviser’s ongoing evaluation of economic, market and political trends
throughout the world. In making decisions regarding country allocation, the
Adviser will consider such factors as the conditions and growth potential of
various economies and securities markets, currency exchange rates, technological
developments in the various countries and other pertinent financial, social,
national and political factors.
PRINCIPAL
RISKS: The Fund’s
returns will vary, and you could lose money by investing in the Fund.
The following is a summary of the principal risks associated
with an investment in the Fund.
Equity Funds General Risk. Because the Fund
invests substantially all of its assets in equity securities of foreign small
cap companies, the primary risk is that the value of the equity securities it
holds might decrease in response to the activities of an individual company or
in response to general market, business and economic conditions. If this occurs,
the Fund’s share price may also decrease. In addition, there is the risk that
individual securities may not perform as expected or a strategy used by the
Adviser may fail to produce its intended result.
Market Risk. The value of the Fund’s
investments may go up or down, sometimes rapidly or unpredictably. The value of
an investment may decline due to factors affecting securities markets generally
or particular industries represented in the securities markets. The value of an
investment may decline due to general market
64
conditions
that are not specifically related to a particular company, such as real or
perceived adverse economic conditions, recessions, inflation, rapid interest
rate changes, changes in the general outlook for corporate earnings, changes in
interest or currency rates or adverse investor sentiment generally. Events such
as war, acts of terrorism, social unrest, natural disasters, the spread of
infectious illness or other public health threats could also significantly
impact the Fund and its investments. The value of an investment may also decline
due to factors that affect a particular industry or industries, such as labor
shortages or increased production costs and competitive conditions within an
industry. During a general downturn in the securities markets, multiple asset
classes may decline in value simultaneously. Geopolitical and other events may
also disrupt securities markets and adversely affect global economies and
markets and thereby decrease the value of the Fund’s investments.
Foreign Investment Risk. The risks of foreign
investments may include less publicly available information, less stringent
investor protections and disclosure standards, less governmental regulation and
supervision of foreign stock exchanges, brokers and issuers, share registration
and custody, a lack of uniform accounting, auditing and financial reporting
standards, practices and requirements, the possibility of expropriation, seizure
or nationalization, confiscatory taxation, limits on repatriation, adverse
changes in investment or exchange control regulations, political instability,
restrictions on the flow of international capital, imposition of foreign
withholding or other taxes, fluctuating currencies, inflation, difficulty in
obtaining and enforcing judgments against foreign entities or other adverse
political, social or diplomatic developments that could affect the Fund’s
investments. Foreign investments may be less liquid and their prices more
volatile than the securities of U.S. companies. The Fund is expected to incur
operating expenses that are higher than those of mutual funds investing
exclusively in U.S. equity securities due to the higher custodial fees
associated with foreign securities investments.
Currency Risk. The value of the Fund’s
portfolio may be affected by changes in exchange rates or control regulations.
If a local currency gains against the U.S. dollar, the value of the security
increases in U.S. dollar terms. If a local currency declines against the U.S.
dollar, the value of the security decreases in U.S. dollar terms.
Emerging Markets Risk. Foreign investment risk
is typically magnified in emerging markets, which are the less developed and
developing nations.
Geographic Risk. To the extent that the Fund
invests a significant portion of its assets in any one country or geographic
region, the Fund will be subject to greater risk of loss or volatility than if
the Fund always maintained wide geographic diversity among the countries and
geographic regions in which it invests. Investing in any one country or
geographic region makes the Fund more vulnerable to the risks of adverse
securities markets, exchange rates and social, political, regulatory and
economic events in that one country or geographic region.
Small and Micro Cap Company Risk. Stocks of
small and micro cap companies involve greater risk than those of larger, more
established companies. This is because small and micro cap companies may be in
earlier stages of development, may be dependent on a small number of products or
services, may lack substantial capital reserves and/or do not have proven track
records. Small and micro cap companies may be traded in low volumes. This can
increase volatility and increase the risk that the Fund will not be able to sell
a security on short notice at a reasonable price. The securities of small and
micro cap companies may be more volatile and less liquid than securities of
large capitalized companies. For purposes of the Fund, micro cap are companies
with market capitalizations of $500 million or less at the time of the
Fund’s investment.
Share Ownership Concentration Risk. To the
extent that a significant portion of the Fund’s shares is held by a limited
number of shareholders or their affiliates, there is a risk that the share
trading activities of these shareholders could disrupt the Fund’s investment
strategies, which could have adverse consequences for the Fund and other
shareholders (e.g., by requiring the Fund to sell investments at inopportune
times or causing the Fund to maintain larger-than-expected cash positions
pending acquisition of investments).
65
Style Risk. Different investment styles (e.g.,
growth vs. value, quality bias, market capitalization focus) tend to shift in
and out of favor depending on market conditions and investor sentiment, and at
times when the growth investment style used by the Adviser for the Fund is out
of favor, the Fund may underperform other equity funds that use different
investment styles.
Liquidity Risk. Investments that trade less
frequently can be more difficult or more costly to buy, or to sell, than more
liquid or active investments. It may not be possible to sell or otherwise
dispose of illiquid securities both at the price and within a time period deemed
desirable by the Fund.
Focus Risk. To the extent that the Fund focuses
its investments in particular industries, asset classes or sectors of the
economy, any market changes affecting companies in those industries, asset
classes or sectors may impact the Fund’s performance.
Operational and Technology Risk. Cyber-attacks,
disruptions, or failures that affect the Fund’s service providers,
counterparties, market participants, or issuers of securities held by the Fund
may adversely affect the Fund and its shareholders, including by causing losses
for the Fund or impairing Fund operations.
The
Fund is not intended to be a complete investment program. The Fund is designed
for long-term investors.
The Fund involves a high level of risk and may not be
appropriate for everyone. You should only consider it for the aggressive
portion of your portfolio.
FUND
PERFORMANCE HISTORY: The information below provides some indication of
the risks of investing in the Fund by showing changes in the Fund’s performance
from year to year and by showing how the Fund’s average annual total returns for
the periods indicated compare with those of a broad measure of market
performance and an additional index. The Fund has added the
performance of the MSCI All Country World Ex‑U.S. Investable Market Index (IMI)
which represents a broad measure of market performance, to comply with new
regulatory requirements. The table also includes the performance of the MSCI All
Country World Ex-U.S. Small Cap Index, which is generally representative of the
market sectors or types of investments in which the Fund
invests. The
Fund’s past performance (before and after taxes) does not necessarily indicate
how it will perform in the future. For more recent performance
information, go to www.williamblairfunds.com or
call 1‑800‑635‑2886.
Annual Total
Returns. The bar chart below provides an illustration of how the Fund’s
performance has varied in each of the last ten calendar years for Class N
shares.
|
|
|
| |
|
|
Highest Quarterly
Return
29.29% (2Q20) |
|
Lowest Quarterly
Return
(25.05)% (1Q20) |
Average Annual Total
Returns (For the periods
ended December 31, 2023). The table below shows returns on a before-tax and
after-tax basis for Class N shares and on a before-tax basis for
Class I and Class R6 shares. After-tax returns for Class I and
Class R6 shares will vary. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. In some instances,
the “Return After Taxes on Distributions and Sale of Fund Shares” may be greater
than the
66
“Return Before Taxes” because
the investor is assumed to be able to use the capital loss on the sale of Fund
shares to offset other taxable capital gains. Actual after-tax
returns depend on an investor’s tax situation and may differ from those shown.
After-tax returns are not relevant to investors
who hold their Fund shares through tax‑deferred arrangements, such as 401(k)
plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Class N
Shares |
|
|
|
| |
|
|
| |
|
| |
Return
Before Taxes |
|
|
14.42% |
|
|
|
7.21% |
|
|
|
3.08% |
|
Return
After Taxes on Distributions |
|
|
14.25% |
|
|
|
6.31% |
|
|
|
1.67% |
|
Return
After Taxes on Distributions and Sale of Fund Shares |
|
|
8.66% |
|
|
|
5.84% |
|
|
|
2.26% |
|
|
|
| |
Class I
Shares |
|
|
|
| |
|
|
| |
|
| |
Return
Before Taxes |
|
|
14.70% |
|
|
|
7.50% |
|
|
|
3.37% |
|
|
|
| |
Class R6
Shares |
|
|
|
| |
|
|
| |
|
| |
Return
Before Taxes |
|
|
14.76% |
|
|
|
7.60% |
|
|
|
3.47% |
|
|
|
| |
MSCI All
Country World Ex-U.S. IMI (net) (reflects no deduction for
fees, expenses or taxes) |
|
|
15.62% |
|
|
|
7.18% |
|
|
|
3.97% |
|
MSCI All
Country World Ex-U.S. Small Cap Index (net) (reflects no
deduction for fees, expenses or taxes) |
|
|
15.66% |
|
|
|
7.89% |
|
|
|
4.88% |
|
MANAGEMENT:
Investment Adviser. William Blair Investment
Management, LLC is the investment adviser of the Fund.
Portfolio Managers. Simon Fennell and D.J.
Neiman, Partners of the Adviser, co-manage the Fund. Mr. Fennell has
co-managed the Fund since 2017. Mr. Neiman has co-managed the Fund since
2021.
PURCHASE
AND SALE OF FUND SHARES:
Purchase. The Fund is closed to new investors.
Shares are only available to certain investors. In certain circumstances,
existing shareholders may be able to open a new Fund account for a different
share class. See “Your Account—International Small Cap Growth Fund” for
information on eligibility requirements applicable to purchasing shares.
Sale. Shares of the Fund are redeemable on any
day the New York Stock Exchange is open for business by mail, wire or telephone,
depending on the elections you make in the account application.
TAX INFORMATION: The Fund intends to make
distributions that may be taxed as ordinary income or capital gains, unless you
are investing through a tax-advantaged investment plan. If you are investing
through a tax-advantaged investment plan, withdrawals from the tax-advantaged
investment plan may be subject to taxes.
PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL
INTERMEDIARIES: If you purchase shares of the Fund through a
broker-dealer or other financial intermediary (such as a bank), the Fund and its
related companies may pay the intermediary for the sale of shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
67
WILLIAM
BLAIR EMERGING MARKETS LEADERS FUND |
SUMMARY
|
INVESTMENT
OBJECTIVE: The William Blair Emerging Markets Leaders Fund seeks long-term
capital appreciation.
FEES AND
EXPENSES: This table describes the fees and expenses that you may pay if
you buy, hold and sell shares of the Fund. You may pay other fees, such as
brokerage commissions and other fees to financial intermediaries, which are not
reflected in the tables and examples below.
Shareholder Fees (fees paid directly from your
investment):
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
Class I |
|
|
Class R6 |
|
Maximum
Sales Charge (Load) Imposed on Purchases |
|
|
None |
|
|
|
None |
|
|
|
None |
|
Redemption
Fee |
|
|
None |
|
|
|
None |
|
|
|
None |
|
Annual Fund Operating Expenses (expenses that
you pay each year as a percentage of the value of your investment):
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
Class I |
|
|
Class R6 |
|
Management
Fee |
|
|
0.94% |
|
|
|
0.94% |
|
|
|
0.94% |
|
Distribution
(Rule 12b-1) Fee |
|
|
0.25% |
|
|
|
None |
|
|
|
None |
|
Other
Expenses |
|
|
0.27% |
|
|
|
0.24% |
|
|
|
0.14% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
1.46% |
|
|
|
1.18% |
|
|
|
1.08% |
|
Fee
Waiver and/or Expense Reimbursement* |
|
|
0.22% |
|
|
|
0.19% |
|
|
|
0.14% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
|
|
1.24% |
|
|
|
0.99% |
|
|
|
0.94% |
|
* |
William
Blair Investment Management, LLC (the “Adviser”) has entered into a
contractual agreement with the Fund to waive fees and/or reimburse
expenses in order to limit the Fund’s operating expenses (excluding
interest expenses, taxes, brokerage commissions, acquired fund fees and
expenses, dividend and interest expenses on short sales, other
investment-related costs and extraordinary expenses, such as litigation
and other expenses not incurred in the ordinary course of the Fund’s
business) to 1.24%, 0.99% and 0.94% of average daily net assets for
Class N, Class I and Class R6 shares, respectively, until
April 30, 2025. The Adviser may not terminate this arrangement prior
to April 30, 2025 without
the approval of the Fund’s Board of Trustees.
|
Example: This example is intended to help you compare the cost of
investing in shares of the Fund with the cost of investing in other mutual
funds. The example assumes that you invest $10,000 in the Fund for the time
periods indicated and then redeem all of your shares at the end of those
periods. The example also assumes that your investment has a 5% return each year
and the Fund’s operating expenses remain the same. The figures reflect the
expense limitation for the first year. Although your actual costs may be higher
or lower, based on these assumptions your costs would be:
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
Class N |
|
$126 |
|
$440 |
|
$777 |
|
$1,727 |
Class I |
|
101 |
|
356 |
|
631 |
|
1,415 |
Class R6 |
|
96 |
|
330 |
|
582 |
|
1,305 |
Portfolio
Turnover: The Fund pays
transaction costs, such as commissions, when it buys and sells securities (or
“turns over” its portfolio). A higher portfolio turnover may indicate higher
transaction costs and may result in
68
higher taxes when Fund shares
are held in a taxable account. These costs, which are not reflected in annual
fund operating expenses or in the example, affect the Fund’s performance. During
the most recent fiscal year, the Fund’s portfolio turnover rate was
44% of the average value of its
portfolio.
PRINCIPAL INVESTMENT
STRATEGIES: Under normal market
conditions, the Fund invests at least 80% of its net assets (plus the amount of
any borrowings for investment purposes) in emerging markets securities. The Fund
invests primarily in a diversified portfolio of equity securities, including
common stocks and other forms of equity investments (e.g., securities
convertible into common stocks), issued by emerging market companies of all
sizes that the Adviser believes have above-average growth, profitability and
quality characteristics. Under normal market conditions, the Fund typically
holds a limited number of securities (i.e., 50‑80 securities). The Adviser seeks
investment opportunities in companies at different stages of development,
ranging from large, well-established companies to smaller companies at earlier
stages of development, that are leaders in their country, industry or globally
in terms of products, services or execution. Emerging market companies, for
purposes of the Fund, are companies organized under the laws of an emerging
market country or that have securities traded principally on an exchange or
over-the-counter in an emerging market country. Currently, emerging markets
include every country in the world except the United States, Canada, Japan,
Australia, New Zealand, Hong Kong, Singapore and most Western European
countries. The Fund’s investments are normally allocated among at least six
different countries and no more than 50% of the Fund’s equity holdings may be
invested in securities of issuers in one country at any given
time.
In
choosing investments, the Adviser performs fundamental company analysis and
focuses on stock selection. The Adviser generally seeks equity securities,
including common stocks, of emerging market companies that historically have had
superior growth, profitability and quality relative to local markets and
relative to companies within the same industry worldwide, and that are expected
to continue such performance. Such companies generally will exhibit superior
business fundamentals, including leadership in their field, quality products or
services, distinctive marketing and distribution, pricing flexibility and
revenue from products or services consumed on a steady, recurring basis. These
business characteristics should be accompanied by management that is shareholder
return-oriented and that uses conservative accounting policies. Companies with
above-average returns on equity, strong balance sheets and consistent,
above-average earnings growth at reasonable valuation levels will be the primary
focus. Stock selection will take into account both local and global comparisons.
The
Adviser will vary the Fund’s sector and geographic diversification based upon
the Adviser’s ongoing evaluation of economic, market and political trends
throughout the world. In making decisions regarding country allocation, the
Adviser will consider such factors as the conditions and growth potential of
various economies and securities markets, currency exchange rates, technological
developments in the various countries and other pertinent financial, social,
national and political factors.
PRINCIPAL
RISKS: The Fund’s
returns will vary, and you could lose money by investing in the
Fund. The following is a summary of the principal risks
associated with an investment in the Fund.
Equity Funds General Risk. Because the Fund
invests substantially all of its assets in equity securities of emerging market
companies, the primary risk is that the value of the equity securities it holds
might decrease in response to the activities of an individual company or in
response to general market, business and economic conditions. If this occurs,
the Fund’s share price may also decrease. In addition, there is the risk that
individual securities may not perform as expected or a strategy used by the
Adviser may fail to produce its intended result.
Market Risk. The value of the Fund’s
investments may go up or down, sometimes rapidly or unpredictably. The value of
an investment may decline due to factors affecting securities markets generally
or particular industries represented in the securities markets. The value of an
investment may decline due to general market conditions that are not
specifically related to a particular company, such as real or perceived adverse
economic conditions, recessions, inflation, rapid interest rate changes, changes
in the general outlook for corporate earnings, changes in interest or currency
rates or adverse investor sentiment generally. Events such as war, acts
69
of
terrorism, social unrest, natural disasters, the spread of infectious illness or
other public health threats could also significantly impact the Fund and its
investments. The value of an investment may also decline due to factors that
affect a particular industry or industries, such as labor shortages or increased
production costs and competitive conditions within an industry. During a general
downturn in the securities markets, multiple asset classes may decline in value
simultaneously. Geopolitical and other events may also disrupt securities
markets and adversely affect global economies and markets and thereby decrease
the value of the Fund’s investments.
Foreign Investment Risk. The risks of foreign
investments may include less publicly available information, less stringent
investor protections and disclosure standards, less governmental regulation and
supervision of foreign stock exchanges, brokers and issuers, share registration
and custody, a lack of uniform accounting, auditing and financial reporting
standards, practices and requirements, the possibility of expropriation, seizure
or nationalization, confiscatory taxation, limits on repatriation, adverse
changes in investment or exchange control regulations, political instability,
restrictions on the flow of international capital, imposition of foreign
withholding or other taxes, fluctuating currencies, inflation, difficulty in
obtaining and enforcing judgments against foreign entities or other adverse
political, social or diplomatic developments that could affect the Fund’s
investments. Foreign investments may be less liquid and their prices more
volatile than the securities of U.S. companies. The Fund is expected to incur
operating expenses that are higher than those of mutual funds investing
exclusively in U.S. equity securities due to the higher custodial fees
associated with foreign securities investments.
Currency Risk. The value of the Fund’s
portfolio may be affected by changes in exchange rates or control regulations.
If a local currency gains against the U.S. dollar, the value of the security
increases in U.S. dollar terms. If a local currency declines against the U.S.
dollar, the value of the security decreases in U.S. dollar terms. The currencies
of emerging market countries may experience a devaluation relative to the U.S.
dollar, and continued devaluations may adversely affect the value of the Fund’s
assets denominated in such currencies. Many emerging market countries have
experienced substantial rates of inflation for many years, and continued
inflation may adversely affect the economies and securities markets of such
countries.
Emerging Markets Risk. Foreign investment risk
is typically magnified in emerging markets, which are the less developed and
developing nations. Many emerging market countries have experienced substantial
rates of inflation for many years, and continued inflation may adversely affect
the economies and securities markets of such countries.
Geographic Risk. To the extent that the Fund
invests a significant portion of its assets in any one country or geographic
region, the Fund will be subject to greater risk of loss or volatility than if
the Fund always maintained wide geographic diversity among the countries and
geographic regions in which it invests. Investing in any one country or
geographic region makes the Fund more vulnerable to the risks of adverse
securities markets, exchange rates and social, political, regulatory and
economic events in that one country or geographic region.
Smaller Company Risk. Stocks of smaller
companies involve greater risk than those of larger, more established companies.
This is because smaller companies may be in earlier stages of development, may
be dependent on a small number of products or services, may lack substantial
capital reserves and/or do not have proven track records. Smaller companies may
be traded in low volumes. This can increase volatility and increase the risk
that the Fund will not be able to sell a security on short notice at a
reasonable price. The securities of smaller companies may be more volatile and
less liquid than securities of large capitalized companies.
Share Ownership Concentration Risk. To the
extent that a significant portion of the Fund’s shares is held by a limited
number of shareholders or their affiliates, there is a risk that the share
trading activities of these shareholders could disrupt the Fund’s investment
strategies, which could have adverse consequences for the Fund and other
shareholders (e.g., by requiring the Fund to sell investments at inopportune
times or causing the Fund to maintain larger-than-expected cash positions
pending acquisition of investments). In addition, separate accounts managed by
the Adviser may invest in the Fund and, therefore, the Adviser at times may have
70
discretionary
authority over a significant portion of the assets of the Fund. In such
instances, the Adviser’s decision to make changes to or rebalance its clients’
allocations in the separate accounts may substantially impact the Fund’s
performance.
Style Risk. Different investment styles (e.g.,
growth vs. value, quality bias, market capitalization focus) tend to shift in
and out of favor depending on market conditions and investor sentiment, and at
times when the investment style used by the Adviser for the Fund is out of
favor, the Fund may underperform other equity funds that use different
investment styles.
Liquidity Risk. Investments that trade less
frequently can be more difficult or more costly to buy, or to sell, than more
liquid or active investments. It may not be possible to sell or otherwise
dispose of illiquid securities both at the price and within a time period deemed
desirable by the Fund.
Focus Risk. To the extent that the Fund focuses
its investments in particular industries, asset classes or sectors of the
economy, any market changes affecting companies in those industries, asset
classes or sectors may impact the Fund’s performance. In addition, because the
Fund may focus its investments in a limited number of securities, its
performance may be more volatile than a fund that invests in a greater number of
securities.
Operational and Technology Risk. Cyber-attacks,
disruptions, or failures that affect the Fund’s service providers,
counterparties, market participants, or issuers of securities held by the Fund
may adversely affect the Fund and its shareholders, including by causing losses
for the Fund or impairing Fund operations.
The
Fund is not intended to be a complete investment program. The Fund is designed
for long-term investors.
The Fund involves a high level of risk and may not be
appropriate for everyone. You should only consider it for the aggressive
portion of your portfolio.
FUND
PERFORMANCE HISTORY: The information below provides some indication of
the risks of investing in the Fund by showing changes in the Fund’s performance
from year to year and by showing how the Fund’s average annual total returns for
the periods indicated compare with that of a broad measure of market performance
that is generally representative of the market sectors or types of investments
in which the Fund invests. The
Fund’s past performance (before and after taxes) does not necessarily indicate
how it will perform in the future. For more recent performance
information, go to www.williamblairfunds.com or
call 1‑800‑635‑2886.
Annual Total
Returns. The bar chart below provides an illustration of how the Fund’s
performance has varied in each of the last ten calendar years for Class N
shares.
|
|
|
| |
|
|
Highest Quarterly
Return
26.29% (2Q20) |
|
Lowest Quarterly Return
(24.36)% (1Q20) |
Average Annual Total
Returns (For the periods
ended December 31, 2023). The table below shows returns on a before-tax and
after-tax basis for Class N shares and on a before-tax basis for
Class I and Class R6 shares. After-tax returns for Class I and
Class R6 shares will vary. After-tax returns are
calculated using the historical
71
highest individual federal
marginal income tax rates and do not reflect the impact of state and local
taxes. In some instances, the “Return After Taxes on
Distributions and Sale of Fund Shares” may be greater than the “Return Before
Taxes” because the investor is assumed to be able to use the capital loss on the
sale of Fund shares to offset other taxable capital gains.
Actual after-tax returns depend on an investor’s tax situation and may differ
from those shown. After-tax returns are not relevant to investors
who hold their Fund shares through tax-deferred arrangements, such as 401(k)
plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Class N
Shares |
|
|
|
| |
|
|
| |
|
| |
Return
Before Taxes |
|
|
5.85% |
|
|
|
3.29% |
|
|
|
1.95% |
|
Return
After Taxes on Distributions |
|
|
5.69% |
|
|
|
2.77% |
|
|
|
1.40% |
|
Return
After Taxes on Distributions and Sale of Fund Shares |
|
|
3.57% |
|
|
|
2.63% |
|
|
|
1.52% |
|
|
|
| |
Class I
Shares |
|
|
|
| |
|
|
| |
|
| |
Return
Before Taxes |
|
|
6.13% |
|
|
|
3.57% |
|
|
|
2.25% |
|
|
|
| |
Class R6
Shares |
|
|
|
| |
|
|
| |
|
| |
Return
Before Taxes |
|
|
6.22% |
|
|
|
3.63% |
|
|
|
2.30% |
|
|
|
| |
MSCI Emerging
Markets Index (net) (reflects no deduction for fees,
expenses or taxes) |
|
|
9.83% |
|
|
|
3.68% |
|
|
|
2.66% |
|
MANAGEMENT:
Investment Adviser. William Blair Investment
Management, LLC is the investment adviser of the Fund.
Portfolio Managers. Todd M. McClone and Hugo
Scott-Gall, Partners of the Adviser, and Paul Birchenough and Ian Smith,
Associates of the Adviser, co-manage the Fund. Mr. McClone has co-managed
the Fund since its inception in 2008. Mr. Scott-Gall has co-managed the
Fund since 2022. Mr. Birchenough and Mr. Smith have co‑managed the
Fund since 2024. Mr. McClone will remain a co-portfolio manager of the Fund
until December 31, 2024.
PURCHASE
AND SALE OF FUND SHARES:
Class N Share Purchase. The minimum
initial investment for an account generally is $2,500. The minimum subsequent
investment generally is $1,000. Certain exceptions to the minimum initial and
subsequent investment amounts may apply. See “Your Account—Class N Shares”
for additional information on eligibility requirements applicable to purchasing
Class N shares.
Class I Share Purchase. The minimum
initial investment for an account generally is $500,000 (or any lesser amount
if, in William Blair’s opinion, the investor has adequate intent and
availability of funds to reach a future level of investment of $500,000). There
is no minimum for subsequent purchases. There is no minimum initial investment
for qualified retirement plans, including, but not limited to, 401(k) plans, 457
plans, employer-sponsored 403(b) plans, defined benefit plans and other similar
accounts, or plans whereby Class I shares are held through omnibus accounts
(either at the plan level or the level of the plan administrator) and certain
other accounts. William Blair may make certain additional exceptions to the
minimum initial investment amount in its discretion. Class I shares are
only available to certain investors. See “Your Account—Class I Shares” for
additional information on the eligibility requirements and investment minimums
applicable to purchasing Class I shares.
72
Class R6 Share Purchase. The minimum
initial investment for an account is $1 million (or any lesser amount if,
in William Blair’s opinion, the investor has adequate intent and availability of
funds to reach a future level of investment of $1 million). There is no minimum
for subsequent purchases. There is no minimum initial investment for qualified
retirement plans, including, but not limited to, 401(k) plans, 457 plans,
employer-sponsored 403(b) plans, defined benefit plans and other similar
accounts, or plans whereby Class R6 shares are held through omnibus
accounts (either at the plan level or the level of the plan administrator) and
certain other accounts. William Blair may make certain additional exceptions to
the minimum initial investment amount in its discretion. Class R6 shares
are only available to certain investors. See “Your Account—Class R6 Shares”
for additional information on eligibility requirements and investment minimums
applicable to purchasing Class R6 shares.
Sale. Shares of the Fund are redeemable on any
day the New York Stock Exchange is open for business by mail, wire or telephone,
depending on the elections you make in the account application.
TAX INFORMATION: The Fund intends to make
distributions that may be taxed as ordinary income or capital gains, unless you
are investing through a tax-advantaged investment plan. If you are investing
through a tax-advantaged investment plan, withdrawals from the tax-advantaged
investment plan may be subject to taxes.
PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL
INTERMEDIARIES: If you purchase shares of the Fund through a
broker-dealer or other financial intermediary (such as a bank), the Fund and its
related companies may pay the intermediary for the sale of shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
73
WILLIAM
BLAIR EMERGING MARKETS GROWTH FUND |
SUMMARY
|
INVESTMENT
OBJECTIVE: The William Blair Emerging Markets Growth Fund seeks long-term
capital appreciation.
FEES AND
EXPENSES: This table describes the fees and expenses that you may pay if
you buy, hold and sell shares of the Fund. You may pay other fees, such as
brokerage commissions and other fees to financial intermediaries, which are not
reflected in the tables and examples below.
Shareholder Fees (fees paid directly from your
investment):
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
Class I |
|
|
Class R6 |
|
Maximum
Sales Charge (Load) Imposed on Purchases |
|
|
None |
|
|
|
None |
|
|
|
None |
|
Redemption
Fee |
|
|
None |
|
|
|
None |
|
|
|
None |
|
Annual Fund Operating Expenses (expenses that
you pay each year as a percentage of the value of your investment):
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
Class I |
|
|
Class R6 |
|
Management
Fee |
|
|
0.94% |
|
|
|
0.94% |
|
|
|
0.94% |
|
Distribution
(Rule 12b-1) Fee |
|
|
0.25% |
|
|
|
None |
|
|
|
None |
|
Other
Expenses |
|
|
0.27% |
|
|
|
0.26% |
|
|
|
0.14% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
1.46% |
|
|
|
1.20% |
|
|
|
1.08% |
|
Fee
Waiver and/or Expense Reimbursement* |
|
|
0.22% |
|
|
|
0.21% |
|
|
|
0.14% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
|
|
1.24% |
|
|
|
0.99% |
|
|
|
0.94% |
|
* |
William
Blair Investment Management, LLC (the “Adviser”) has entered into a
contractual agreement with the Fund to waive fees and/or reimburse
expenses in order to limit the Fund’s operating expenses (excluding
interest expenses, taxes, brokerage commissions, acquired fund fees and
expenses, dividend and interest expenses on short sales, other
investment-related costs and extraordinary expenses, such as litigation
and other expenses not incurred in the ordinary course of the Fund’s
business) to 1.24%, 0.99% and 0.94% of average daily net assets for
Class N, Class I and Class R6 shares, respectively, until
April 30, 2025. The Adviser may not terminate this arrangement prior
to April 30, 2025 without
the approval of the Fund’s Board of Trustees.
|
Example: This example is intended to help you compare the cost of
investing in shares of the Fund with the cost of investing in other mutual
funds. The example assumes that you invest $10,000 in the Fund for the time
periods indicated and then redeem all of your shares at the end of those
periods. The example also assumes that your investment has a 5% return each year
and the Fund’s operating expenses remain the same. The figures reflect the
expense limitation for the first year. Although your actual costs may be higher
or lower, based on these assumptions your costs would be:
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
Class N |
|
$126 |
|
$440 |
|
$777 |
|
$1,727 |
Class I |
|
101 |
|
360 |
|
639 |
|
1,436 |
Class R6 |
|
96 |
|
330 |
|
582 |
|
1,305 |
74
Portfolio
Turnover: The Fund pays transaction costs, such as commissions, when it
buys and sells securities (or “turns over” its portfolio). A higher portfolio
turnover may indicate higher transaction costs and may result in higher taxes
when Fund shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example, affect the Fund’s
performance. During the most recent fiscal year, the Fund’s portfolio turnover
rate was 58% of the average value of its
portfolio.
PRINCIPAL INVESTMENT
STRATEGIES: Under normal market
conditions, the Fund invests at least 80% of its net assets (plus the amount of
any borrowings for investment purposes) in emerging markets securities. The Fund
invests primarily in a diversified portfolio of equity securities, including
common stocks and other forms of equity investments (e.g., securities
convertible into common stocks), issued by emerging market companies of all
sizes that the Adviser believes have above-average growth, profitability and
quality characteristics. The Adviser seeks investment opportunities in companies
at different stages of development ranging from large, well-established
companies to smaller companies at earlier stages of development. Emerging market
companies, for purposes of the Fund, are companies organized under the laws of
an emerging market country or that have securities traded principally on an
exchange or over-the-counter in an emerging market country. Currently, emerging
markets include every country in the world except the United States, Canada,
Japan, Australia, New Zealand, Hong Kong, Singapore and most Western European
countries. The Fund’s investments are normally allocated among at least six
different countries and no more than 50% of the Fund’s equity holdings may be
invested in securities of issuers in one country at any given
time.
In
choosing investments, the Adviser performs fundamental company analysis and
focuses on stock selection. The Adviser generally seeks equity securities,
including common stocks, of emerging market companies that historically have had
superior growth, profitability and quality relative to local markets and
relative to companies within the same industry worldwide, and that are expected
to continue such performance. Such companies generally will exhibit superior
business fundamentals, including leadership in their field, quality products or
services, distinctive marketing and distribution, pricing flexibility and
revenue from products or services consumed on a steady, recurring basis. These
business characteristics should be accompanied by management that is shareholder
return-oriented and that uses conservative accounting policies. Companies with
above-average returns on equity, strong balance sheets and consistent,
above-average earnings growth will be the primary focus. Stock selection will
take into account both local and global comparisons.
The
Adviser will vary the Fund’s sector and geographic diversification based upon
the Adviser’s ongoing evaluation of economic, market and political trends
throughout the world. In making decisions regarding country allocation, the
Adviser will consider such factors as the conditions and growth potential of
various economies and securities markets, currency exchange rates, technological
developments in the various countries and other pertinent financial, social,
national and political factors.
PRINCIPAL
RISKS: The Fund’s
returns will vary, and you could lose money by investing in the
Fund. The following is a summary of the principal risks
associated with an investment in the Fund.
Equity Funds General Risk. Because the Fund
invests substantially all of its assets in equity securities of emerging market
companies, the primary risk is that the value of the equity securities it holds
might decrease in response to the activities of an individual company or in
response to general market, business and economic conditions. If this occurs,
the Fund’s share price may also decrease. In addition, there is the risk that
individual securities may not perform as expected or a strategy used by the
Adviser may fail to produce its intended result.
Market Risk. The value of the Fund’s
investments may go up or down, sometimes rapidly or unpredictably. The value of
an investment may decline due to factors affecting securities markets generally
or particular industries represented in the securities markets. The value of an
investment may decline due to general market conditions that are not
specifically related to a particular company, such as real or perceived adverse
economic conditions, recessions, inflation, rapid interest rate changes, changes
in the general outlook for corporate earnings, changes in interest or currency
rates or adverse investor sentiment generally. Events such as war, acts
75
of
terrorism, social unrest, natural disasters, the spread of infectious illness or
other public health threats could also significantly impact the Fund and its
investments. The value of an investment may also decline due to factors that
affect a particular industry or industries, such as labor shortages or increased
production costs and competitive conditions within an industry. During a general
downturn in the securities markets, multiple asset classes may decline in value
simultaneously. Geopolitical and other events may also disrupt securities
markets and adversely affect global economies and markets and thereby decrease
the value of the Fund’s investments.
Foreign Investment Risk. The risks of foreign
investments may include less publicly available information, less stringent
investor protections and disclosure standards, less governmental regulation and
supervision of foreign stock exchanges, brokers and issuers, share registration
and custody, a lack of uniform accounting, auditing and financial reporting
standards, practices and requirements, the possibility of expropriation, seizure
or nationalization, confiscatory taxation, limits on repatriation, adverse
changes in investment or exchange control regulations, political instability,
restrictions on the flow of international capital, imposition of foreign
withholding or other taxes, fluctuating currencies, inflation, difficulty in
obtaining and enforcing judgments against foreign entities or other adverse
political, social or diplomatic developments that could affect the Fund’s
investments. Foreign investments may be less liquid and their prices more
volatile than the securities of U.S. companies. The Fund is expected to incur
operating expenses that are higher than those of mutual funds investing
exclusively in U.S. equity securities due to the higher custodial fees
associated with foreign securities investments.
Currency Risk. The value of the Fund’s
portfolio may be affected by changes in exchange rates or control regulations.
If a local currency gains against the U.S. dollar, the value of the security
increases in U.S. dollar terms. If a local currency declines against the U.S.
dollar, the value of the security decreases in U.S. dollar terms. The currencies
of emerging market countries may experience a devaluation relative to the U.S.
dollar, and continued devaluations may adversely affect the value of the Fund’s
assets denominated in such currencies. Many emerging market countries have
experienced substantial rates of inflation for many years, and continued
inflation may adversely affect the economies and securities markets of such
countries.
Emerging Markets Risk. Foreign investment risk
is typically magnified in emerging markets, which are the less developed and
developing nations.
Geographic Risk. To the extent that the Fund
invests a significant portion of its assets in any one country or geographic
region, the Fund will be subject to greater risk of loss or volatility than if
the Fund always maintained wide geographic diversity among the countries and
geographic regions in which it invests. Investing in any one country or
geographic region makes the Fund more vulnerable to the risks of adverse
securities markets, exchange rates and social, political, regulatory and
economic events in that one country or geographic region.
Smaller Company Risk. Stocks of smaller
companies involve greater risk than those of larger, more established companies.
This is because smaller companies may be in earlier stages of development, may
be dependent on a small number of products or services, may lack substantial
capital reserves and/or do not have proven track records. Smaller companies may
be traded in low volumes. This can increase volatility and increase the risk
that the Fund will not be able to sell a security on short notice at a
reasonable price. The securities of smaller companies may be more volatile and
less liquid than securities of large capitalized companies.
Share Ownership Concentration Risk. To the
extent that a significant portion of the Fund’s shares is held by a limited
number of shareholders or their affiliates, there is a risk that the share
trading activities of these shareholders could disrupt the Fund’s investment
strategies, which could have adverse consequences for the Fund and other
shareholders (e.g., by requiring the Fund to sell investments at inopportune
times or causing the Fund to maintain larger-than-expected cash positions
pending acquisition of investments). In addition, separate accounts managed by
the Adviser may invest in the Fund and, therefore, the Adviser at times may have
discretionary authority over a significant portion of the assets of the Fund. In
such instances, the Adviser’s
76
decision
to make changes to or rebalance its clients’ allocations in the separate
accounts may substantially impact the Fund’s performance.
Style Risk. Different investment styles (e.g.,
growth vs. value, quality bias, market capitalization focus) tend to shift in
and out of favor depending on market conditions and investor sentiment, and at
times when the growth investment style used by the Adviser for the Fund is out
of favor, the Fund may underperform other equity funds that use different
investment styles.
Liquidity Risk. Investments that trade less
frequently can be more difficult or more costly to buy, or to sell, than more
liquid or active investments. It may not be possible to sell or otherwise
dispose of illiquid securities both at the price and within a time period deemed
desirable by the Fund.
Focus Risk. To the extent that the Fund focuses
its investments in particular industries, asset classes or sectors of the
economy, any market changes affecting companies in those industries, asset
classes or sectors may impact the Fund’s performance.
Operational and Technology Risk. Cyber-attacks,
disruptions, or failures that affect the Fund’s service providers,
counterparties, market participants, or issuers of securities held by the Fund
may adversely affect the Fund and its shareholders, including by causing losses
for the Fund or impairing Fund operations.
The
Fund is not intended to be a complete investment program. The Fund is designed
for long-term investors.
The Fund involves a high level of risk and may not be
appropriate for everyone. You should only consider it for the aggressive
portion of your portfolio.
FUND
PERFORMANCE HISTORY: The information below provides some indication of
the risks of investing in the Fund by showing changes in the Fund’s performance
from year to year and by showing how the Fund’s average annual total returns for
the periods indicated compare with those of a broad measure of market
performance that is generally representative of the market sectors or types of
investments in which the Fund invests. The
Fund’s past performance (before and after taxes) does not necessarily indicate
how it will perform in the future. For more recent performance
information, go to www.williamblairfunds.com or
call 1‑800‑635‑2886.
Annual Total
Returns. The bar chart below provides an illustration of how the Fund’s
performance has varied in each of the last ten calendar years for Class N
shares.
|
|
|
| |
|
|
Highest Quarterly Return
30.41% (2Q20) |
|
Lowest Quarterly Return
(20.85)% (1Q20) |
Average Annual Total
Returns (For the periods
ended December 31, 2023). The table below shows returns on a before-tax and
after-tax basis for Class N shares and on a before-tax basis for
Class I and Class R6 shares. After-tax returns for Class I and
Class R6 shares will vary. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. In some instances,
the “Return After Taxes on Distributions and Sale of Fund Shares” may be greater
than the
77
“Return Before Taxes” because
the investor is assumed to be able to use the capital loss on the sale of Fund
shares to offset other taxable capital gains. Actual after-tax
returns depend on an investor’s tax situation and may differ from those shown.
After-tax returns are not relevant to investors
who hold their Fund shares through tax-deferred arrangements, such as 401(k)
plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Class N
Shares |
|
|
|
| |
|
|
| |
|
| |
Return
Before Taxes |
|
|
9.99% |
|
|
|
6.28% |
|
|
|
3.48% |
|
Return
After Taxes on Distributions |
|
|
9.91% |
|
|
|
4.92% |
|
|
|
2.19% |
|
Return
After Taxes on Distributions and Sale of Fund Shares |
|
|
5.97% |
|
|
|
5.19% |
|
|
|
2.64% |
|
|
|
| |
Class I
Shares |
|
|
|
| |
|
|
| |
|
| |
Return
Before Taxes |
|
|
10.23% |
|
|
|
6.55% |
|
|
|
3.74% |
|
|
|
| |
Class R6
Shares |
|
|
|
| |
|
|
| |
|
| |
Return
Before Taxes |
|
|
10.26% |
|
|
|
6.62% |
|
|
|
3.83% |
|
|
|
| |
MSCI Emerging
Markets Investable Market Index (net) (reflects no deduction
for fees, expenses or taxes) |
|
|
11.67% |
|
|
|
4.45% |
|
|
|
3.00% |
|
MANAGEMENT:
Investment Adviser. William Blair Investment
Management, LLC is the investment adviser of the Fund.
Portfolio Managers. Todd M. McClone, Casey
Preyss and Vivian Lin Thurston, Partners of the Adviser, co‑manage the Fund.
Mr. McClone has co-managed the Fund since its inception in 2005.
Mr. Preyss has co‑managed the Fund since 2015. Ms. Thurston has
co-managed the Fund since 2021.
PURCHASE AND SALE OF FUND SHARES:
Class N Share Purchase. The minimum
initial investment for an account generally is $2,500. The minimum subsequent
investment generally is $1,000. Certain exceptions to the minimum initial and
subsequent investment amounts may apply. See “Your Account—Class N Shares”
for additional information on eligibility requirements applicable to purchasing
Class N shares.
Class I Share Purchase. The minimum
initial investment for an account generally is $500,000 (or any lesser amount
if, in William Blair’s opinion, the investor has adequate intent and
availability of funds to reach a future level of investment of $500,000). There
is no minimum for subsequent purchases. There is no minimum initial investment
for qualified retirement plans, including, but not limited to, 401(k) plans, 457
plans, employer-sponsored 403(b) plans, defined benefit plans and other similar
accounts, or plans whereby Class I shares are held through omnibus accounts
(either at the plan level or the level of the plan administrator) and certain
other accounts. William Blair may make certain additional exceptions to the
minimum initial investment amount in its discretion. Class I shares are
only available to certain investors. See “Your Account—Class I Shares” for
additional information on the eligibility requirements and investment minimums
applicable to purchasing Class I shares.
Class R6 Share Purchase. The minimum
initial investment for an account is $1 million (or any lesser amount if,
in William Blair’s opinion, the investor has adequate intent and availability of
funds to reach a future level of investment of $1 million). There is no minimum
for subsequent purchases. There is no minimum initial investment for qualified
retirement plans, including, but not limited to, 401(k) plans, 457 plans,
employer-sponsored 403(b) plans, defined benefit plans and other similar
accounts, or plans whereby Class R6 shares are held through omnibus
accounts (either at the plan level or the level of the plan administrator) and
certain other
78
accounts.
William Blair may make certain additional exceptions to the minimum initial
investment amount in its discretion. Class R6 shares are only available to
certain investors. See “Your Account—Class R6 Shares” for additional
information on eligibility requirements and investment minimums applicable to
purchasing Class R6 shares.
Sale. Shares of the Fund are redeemable on any
day the New York Stock Exchange is open for business by mail, wire or telephone,
depending on the elections you make in the account application.
TAX INFORMATION: The Fund intends to make
distributions that may be taxed as ordinary income or capital gains, unless you
are investing through a tax-advantaged investment plan. If you are investing
through a tax-advantaged investment plan, withdrawals from the tax-advantaged
investment plan may be subject to taxes.
PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL
INTERMEDIARIES: If you purchase shares of the Fund through a
broker-dealer or other financial intermediary (such as a bank), the Fund and its
related companies may pay the intermediary for the sale of shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
79
|
|
|
| |
WILLIAM BLAIR EMERGING MARKETS EX CHINA GROWTH
FUND |
|
|
SUMMARY |
|
INVESTMENT
OBJECTIVE: The William Blair Emerging Markets ex China Growth Fund seeks
long-term capital appreciation.
FEES AND
EXPENSES: This table describes the fees and expenses that you may pay if you
buy, hold and sell shares of the Fund. You may pay other fees, such as brokerage
commissions and other fees to financial intermediaries, which are not reflected
in the tables and examples below.
Shareholder Fees (fees paid directly from your
investment):
|
|
|
|
|
|
|
| |
|
|
Class I |
|
|
Class R6 |
|
Maximum
Sales Charge (Load) Imposed on Purchases |
|
|
None |
|
|
|
None |
|
Redemption
Fee |
|
|
None |
|
|
|
None |
|
Annual Fund Operating Expenses (expenses that
you pay each year as a percentage of the value of your investment):
|
|
|
|
|
|
|
| |
|
|
Class I |
|
|
Class R6 |
|
Management
Fee |
|
|
0.94% |
|
|
|
0.94% |
|
Distribution
(Rule 12b-1) Fee |
|
|
None |
|
|
|
None |
|
Other
Expenses |
|
|
1.41% |
|
|
|
1.32% |
|
| |
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
2.35% |
|
|
|
2.26% |
|
Fee
Waiver and/or Expense Reimbursement* |
|
|
1.36% |
|
|
|
1.32% |
|
| |
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
|
|
0.99% |
|
|
|
0.94% |
|
* |
William
Blair Investment Management, LLC (the “Adviser”) has entered into a
contractual agreement with the Fund to waive fees and/or reimburse
expenses in order to limit the Fund’s operating expenses (excluding
interest expenses, taxes, brokerage commissions, acquired fund fees and
expenses, dividend and interest expenses on short sales, other
investment-related costs and extraordinary expenses, such as litigation
and other expenses not incurred in the ordinary course of the Fund’s
business) to 0.99% and 0.94% of average daily net assets for Class I
and Class R6 shares, respectively, until April 30, 2025. The
Adviser may not terminate this contractual agreement prior to
April 30, 2025 without
the approval of the Fund’s Board of Trustees. The Adviser is entitled to
recoupment of previously waived fees and reimbursed expenses for a period
of three years subsequent to the Fund’s commencement of operations (i.e. July 29, 2025) to the extent
that such recoupment does not cause the annual Fund operating expenses
(after the recoupment is taken into account) to exceed both (1) the
expense limit in place when such amounts were waived or reimbursed and
(2) the Fund’s current expense limitation.
|
Example: This example is intended to help you compare the cost of investing
in shares of the Fund with the cost of investing in other mutual funds. The
example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
example also assumes that your investment has a 5% return each year and the
Fund’s operating expenses remain the same. The figures reflect the expense
limitation for the first year. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
Class I |
|
$101 |
|
$603 |
|
$1,132 |
|
$2,581 |
Class R6 |
|
96 |
|
579 |
|
1,089 |
|
2,492 |
80
Portfolio
Turnover: The Fund pays transaction costs, such as commissions, when it buys
and sells securities (or “turns over” its portfolio). A higher portfolio
turnover may indicate higher transaction costs and may result in higher taxes
when Fund shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example, affect the Fund’s
performance. During the most recent fiscal year,, the Fund’s portfolio turnover
rate was 55% of the average value of its
portfolio.
PRINCIPAL INVESTMENT
STRATEGIES: Under normal
circumstances, the Fund invests at least 80% of its net assets (plus the amount
of any borrowings for investment purposes) in emerging markets securities,
excluding companies with their principal office in the People’s Republic of
China (“PRC”). (For the avoidance of doubt, the PRC shall include mainland
China, Hong Kong and Macau but exclude Taiwan.) The Fund invests primarily in a
diversified portfolio of equity securities, including common stocks and other
forms of equity investments (e.g., securities convertible into common stocks),
issued by emerging market companies (excluding companies with their principal
office in the PRC) of all sizes that the Adviser believes have above-average
growth, profitability and quality characteristics. The Adviser seeks investment
opportunities in companies at different stages of development ranging from
large, well-established companies to smaller companies at earlier stages of
development. Emerging market companies, for purposes of the Fund, are companies
organized under the laws of an emerging market country or that have securities
traded principally on an exchange or over-the-counter in an emerging market
country. Currently, for purposes of the Fund, emerging markets include every
country in the world except the United States, Canada, Japan, Australia, New
Zealand, Hong Kong, Singapore and most Western European countries. The Fund’s
investments are normally allocated among at least six different countries and no
more than 50% of the Fund’s equity holdings may be invested in securities of
issuers in one country at any given time.
In
choosing investments, the Adviser performs fundamental company analysis and
focuses on stock selection. The Adviser generally seeks equity securities,
including common stocks, of emerging market companies that historically have had
superior growth, profitability and quality relative to local markets and
relative to companies within the same industry worldwide, and that are expected
to continue such performance. Such companies generally will exhibit superior
business fundamentals, including leadership in their field, quality products or
services, distinctive marketing and distribution, pricing flexibility and
revenue from products or services consumed on a steady, recurring basis. These
business characteristics should be accompanied by management that is shareholder
return-oriented and that uses conservative accounting policies. Companies with
above-average returns on equity, strong balance sheets and consistent,
above-average earnings growth will be the primary focus. Stock selection will
take into account both local and global comparisons.
The
Adviser will vary the Fund’s sector and geographic diversification based upon
the Adviser’s ongoing evaluation of economic, market and political trends
throughout the world. In making decisions regarding country allocation, the
Adviser will consider such factors as the conditions and growth potential of
various economies and securities markets, currency exchange rates, technological
developments in the various countries and other pertinent financial, social,
national and political factors.
PRINCIPAL
RISKS: The Fund’s
returns will vary, and you could lose money by investing in the
Fund. The following is a summary of the principal risks
associated with an investment in the Fund.
Equity Funds General Risk. Because the Fund
invests substantially all of its assets in equity securities of emerging market
companies, the primary risk is that the value of the equity securities it holds
might decrease in response to the activities of an individual company or in
response to general market, business and economic conditions. If this occurs,
the Fund’s share price may also decrease. In addition, there is the risk that
individual securities may not perform as expected or a strategy used by the
Adviser may fail to produce its intended result.
Market Risk. The value of the Fund’s
investments may go up or down, sometimes rapidly or unpredictably. The value of
an investment may decline due to factors affecting securities markets generally
or particular industries represented in the securities markets. The value of an
investment may decline due to general market
81
conditions
that are not specifically related to a particular company, such as real or
perceived adverse economic conditions, recessions, inflation, rapid interest
rate changes, changes in the general outlook for corporate earnings, changes in
interest or currency rates or adverse investor sentiment generally. Events such
as war, acts of terrorism, social unrest, natural disasters, the spread of
infectious illness or other public health threats could also significantly
impact the Fund and its investments. The value of an investment may also decline
due to factors that affect a particular industry or industries, such as labor
shortages or increased production costs and competitive conditions within an
industry. During a general downturn in the securities markets, multiple asset
classes may decline in value simultaneously. Geopolitical and other events may
also disrupt securities markets and adversely affect global economies and
markets and thereby decrease the value of the Fund’s investments.
Foreign Investment Risk. The risks of foreign
investments may include less publicly available information, less stringent
investor protections and disclosure standards, less governmental regulation and
supervision of foreign stock exchanges, brokers and issuers, share registration
and custody, a lack of uniform accounting, auditing and financial reporting
standards, practices and requirements, the possibility of expropriation, seizure
or nationalization, confiscatory taxation, limits on repatriation, adverse
changes in investment or exchange control regulations, political instability,
restrictions on the flow of international capital, imposition of foreign
withholding or other taxes, fluctuating currencies, inflation, difficulty in
obtaining and enforcing judgments against foreign entities or other adverse
political, social or diplomatic developments that could affect the Fund’s
investments. Foreign investments may be less liquid and their prices more
volatile than the securities of U.S. companies. The Fund is expected to incur
operating expenses that are higher than those of mutual funds investing
exclusively in U.S. equity securities due to the higher custodial fees
associated with foreign securities investments.
Currency Risk. The value of the Fund’s
portfolio may be affected by changes in exchange rates or control regulations.
If a local currency gains against the U.S. dollar, the value of the security
increases in U.S. dollar terms. If a local currency declines against the U.S.
dollar, the value of the security decreases in U.S. dollar terms. The currencies
of emerging market countries may experience a devaluation relative to the U.S.
dollar, and continued devaluations may adversely affect the value of the Fund’s
assets denominated in such currencies. Many emerging market countries have
experienced substantial rates of inflation for many years, and continued
inflation may adversely affect the economies and securities markets of such
countries.
Emerging Markets Risk. Foreign investment risk
is typically magnified in emerging markets, which are the less developed and
developing nations.
Geographic Risk. To the extent that the Fund
invests a significant portion of its assets in any one country or geographic
region, the Fund will be subject to greater risk of loss or volatility than if
the Fund always maintained wide geographic diversity among the countries and
geographic regions in which it invests. Investing in any one country or
geographic region makes the Fund more vulnerable to the risks of adverse
securities markets, exchange rates and social, political, regulatory and
economic events in that one country or geographic region.
Smaller Company Risk. Stocks of smaller
companies involve greater risk than those of larger, more established companies.
This is because smaller companies may be in earlier stages of development, may
be dependent on a small number of products or services, may lack substantial
capital reserves and/or do not have proven track records. Smaller companies may
be traded in low volumes. This can increase volatility and increase the risk
that the Fund will not be able to sell a security on short notice at a
reasonable price. The securities of smaller companies may be more volatile and
less liquid than securities of large capitalized companies.
Share Ownership Concentration Risk. To the
extent that a significant portion of the Fund’s shares is held by a limited
number of shareholders or their affiliates, there is a risk that the share
trading activities of these shareholders could disrupt the Fund’s investment
strategies, which could have adverse consequences for the Fund and other
shareholders (e.g., by requiring the Fund to sell investments at inopportune
times or causing the Fund to maintain larger-than-expected cash positions
pending acquisition of investments). In addition, separate
82
accounts
managed by the Adviser may invest in the Fund and, therefore, the Adviser at
times may have discretionary authority over a significant portion of the assets
of the Fund. In such instances, the Adviser’s decision to make changes to or
rebalance its clients’ allocations in the separate accounts may substantially
impact the Fund’s performance.
Style Risk. Different investment styles (e.g.,
growth vs. value, quality bias, market capitalization focus) tend to shift in
and out of favor depending on market conditions and investor sentiment, and at
times when the growth investment style used by the Adviser for the Fund is out
of favor, the Fund may underperform other equity funds that use different
investment styles.
Liquidity Risk. Investments that trade less
frequently can be more difficult or more costly to buy, or to sell, than more
liquid or active investments. It may not be possible to sell or otherwise
dispose of illiquid securities both at the price and within a time period deemed
desirable by the Fund.
Focus Risk. To the extent that the Fund focuses
its investments in particular industries, asset classes or sectors of the
economy, any market changes affecting companies in those industries, asset
classes or sectors may impact the Fund’s performance.
Operational and Technology Risk. Cyber-attacks,
disruptions, or failures that affect the Fund’s service providers,
counterparties, market participants, or issuers of securities held by the Fund
may adversely affect the Fund and its shareholders, including by causing losses
for the Fund or impairing Fund operations.
The
Fund is not intended to be a complete investment program. The Fund is designed
for long-term investors.
The Fund involves a high level of risk and may not be
appropriate for everyone. You should only consider it for the aggressive
portion of your portfolio.
FUND
PERFORMANCE HISTORY: The information below provides some indication of
the risks of investing in the Fund by showing changes in the Fund’s performance
from year to year and by showing how the Fund’s average annual total returns for
the periods indicated compare with those of a broad measure of market
performance that is generally representative of the market sectors or types of
investments in which the Fund invests. The
Fund’s past performance (before and after taxes) does not necessarily indicate
how it will perform in the future. For more recent performance
information, go to www.williamblairfunds.com or
call 1‑800‑635‑2886.
Annual Total
Returns. The bar chart below provides an illustration of performance of the
Fund’s Class I shares over the past calendar year.
|
|
|
| |
|
|
Highest Quarterly Return
13.97% (4Q23) |
|
Lowest Quarterly Return
(3.56)% (3Q23) |
Average Annual
Total Returns (For the periods ended December 31,
2023). The table below shows returns on a before-tax and
after-tax basis for Class I shares and on a before-tax basis for
Class R6 shares. After-tax returns for Class R6 shares will
vary. After-tax returns are
calculated using the historical highest
individual
83
federal marginal income tax
rates and do not reflect the impact of state and local taxes.
In some instances, the “Return After Taxes on
Distributions and Sale of Fund Shares” may be greater than the “Return Before
Taxes” because the investor is assumed to be able to use the capital loss on the
sale of Fund shares to offset other taxable capital gains.
Actual after-tax returns depend on an investor’s tax situation and may differ
from those shown. After-tax returns are not relevant to investors
who hold their Fund shares through tax-deferred arrangements, such as 401(k)
plans or individual retirement accounts.
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
|
Since Fund Inception (July 29,
2022) |
|
Class I
Shares |
|
|
|
| |
|
| |
Return
Before Taxes |
|
|
24.75% |
|
|
|
11.86% |
|
Return
After Taxes on Distributions |
|
|
24.50% |
|
|
|
11.71% |
|
Return
After Taxes on Distributions and Sale of Fund Shares |
|
|
14.82% |
|
|
|
9.08% |
|
|
| |
Class R6
Shares |
|
|
|
| |
|
| |
Return
Before Taxes |
|
|
24.75% |
|
|
|
11.95% |
|
|
| |
MSCI Emerging
Markets ex-China Investable Market Index (reflects no
deduction for fees, expenses or taxes) |
|
|
21.64% |
|
|
|
13.53% |
|
MANAGEMENT:
Investment Adviser. William Blair Investment
Management, LLC is the investment adviser of the Fund.
Portfolio Managers. Todd M. McClone and Vivian
Lin Thurston, Partners of the Adviser, co-manage the Fund. Mr. McClone and
Ms. Thurston have co-managed the Fund since its inception in 2022.
PURCHASE
AND SALE OF FUND SHARES:
Class I Share Purchase. The minimum
initial investment for an account generally is $500,000 (or any lesser amount
if, in William Blair’s opinion, the investor has adequate intent and
availability of funds to reach a future level of investment of $500,000). There
is no minimum for subsequent purchases. There is no minimum initial investment
for qualified retirement plans, including, but not limited to, 401(k) plans, 457
plans, employer-sponsored 403(b) plans, defined benefit plans and other similar
accounts, or plans whereby Class I shares are held through omnibus accounts
(either at the plan level or the level of the plan administrator) and certain
other accounts. William Blair may make certain additional exceptions to the
minimum initial investment amount at its discretion. Class I shares are
only available to certain investors. See “Your Account—Class I Shares” for
additional information on the eligibility requirements and investment minimums
applicable to purchasing Class I shares.
Class R6 Share Purchase. The minimum
initial investment for an account is $1 million (or any lesser amount
if, in William Blair’s opinion, the investor has adequate intent and
availability of funds to reach a future level of investment of $1 million).
There is no minimum for subsequent purchases. There is no minimum initial
investment for qualified retirement plans, including, but not limited to, 401(k)
plans, 457 plans, employer-sponsored 403(b) plans, defined benefit plans and
other similar accounts, or plans whereby Class R6 shares are held through
omnibus accounts (either at the plan level or the level of the plan
administrator) and certain other accounts. William Blair may make certain
additional exceptions to the minimum initial investment amount at its
discretion. Class R6 shares are only available to certain investors. See
“Your Account—Class R6 Shares” for additional information on eligibility
requirements and investment minimums applicable to purchasing Class R6
shares.
84
Sale. Shares of the Fund are redeemable on any
day the New York Stock Exchange is open for business by mail, wire or telephone,
depending on the elections you make in the account application.
TAX INFORMATION: The Fund intends to make
distributions that may be taxed as ordinary income or capital gains, unless you
are investing through a tax-advantaged investment plan. If you are investing
through a tax-advantaged investment plan, withdrawals from the tax-advantaged
investment plan may be subject to taxes.
PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL
INTERMEDIARIES: If you purchase shares of the Fund through a
broker-dealer or other financial intermediary (such as a bank), the Fund and its
related companies may pay the intermediary for the sale of shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
85
WILLIAM
BLAIR EMERGING MARKETS SMALL CAP GROWTH FUND |
SUMMARY
|
INVESTMENT
OBJECTIVE: The William Blair Emerging Markets Small Cap Growth Fund seeks
long-term capital appreciation.
FEES AND
EXPENSES: This table describes the fees and expenses that you may pay if you
buy, hold and sell shares of the Fund. You may pay other fees, such as brokerage
commissions and other fees to financial intermediaries, which are not reflected
in the tables and examples below.
Shareholder Fees (fees paid directly from your
investment):
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
Class I |
|
|
Class R6 |
|
Maximum
Sales Charge (Load) Imposed on Purchases |
|
|
None |
|
|
|
None |
|
|
|
None |
|
Redemption
Fee |
|
|
None |
|
|
|
None |
|
|
|
None |
|
Annual Fund Operating Expenses (expenses that
you pay each year as a percentage of the value of your investment):
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
Class I |
|
|
Class R6 |
|
Management
Fee |
|
|
1.10% |
|
|
|
1.10% |
|
|
|
1.10% |
|
Distribution
(Rule 12b-1) Fee |
|
|
0.25% |
|
|
|
None |
|
|
|
None |
|
Other
Expenses |
|
|
0.35% |
|
|
|
0.33% |
|
|
|
0.22% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
1.70% |
|
|
|
1.43% |
|
|
|
1.32% |
|
Fee
Waiver and/or Expense Reimbursement* |
|
|
0.30% |
|
|
|
0.28% |
|
|
|
0.22% |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement** |
|
|
1.40% |
|
|
|
1.15% |
|
|
|
1.10% |
|
* |
William
Blair Investment Management, LLC (the “Adviser”) has entered into a
contractual agreement with the Fund to waive fees and/or reimburse
expenses in order to limit the Fund’s operating expenses (excluding
interest expenses, taxes, brokerage commissions, acquired fund fees and
expenses, dividend and interest expenses on short sales, other
investment-related costs and extraordinary expenses, such as litigation
and other expenses not incurred in the ordinary course of the Fund’s
business) to 1.40%, 1.15% and 1.10% of average daily net assets for
Class N, Class I and Class R6 shares, respectively, until
April 30, 2025. The Adviser may not terminate this arrangement prior
to April 30, 2025 without
the approval of the Fund’s Board of Trustees.
|
** |
The
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement does not equal the net expense ratio to average daily net
assets in the Financial Highlights section of this Prospectus as a result
of a change in contractual expense limits.
|
Example: This example is intended to help you compare the cost of investing
in shares of the Fund with the cost of investing in other mutual funds. The
example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
example also assumes that your investment has a 5% return each year and the
Fund’s operating expenses remain the same. The figures reflect the expense
limitation for the first year. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
Class N |
|
$143 |
|
$506 |
|
$895 |
|
$1,984 |
Class I |
|
117 |
|
425 |
|
755 |
|
1,689 |
Class R6 |
|
112 |
|
397 |
|
702 |
|
1,571 |
86
Portfolio
Turnover: The Fund pays transaction costs, such as commissions, when it buys
and sells securities (or “turns over” its portfolio). A higher portfolio
turnover may indicate higher transaction costs and may result in higher taxes
when Fund shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example, affect the Fund’s
performance. During the most recent fiscal year, the Fund’s portfolio turnover
rate was 117% of the average value of its
portfolio.
PRINCIPAL INVESTMENT
STRATEGIES: Under normal market
conditions, the Fund invests at least 80% of its net assets (plus the amount of
any borrowings for investment purposes) in equity securities of emerging market
small capitalization (“small cap”) companies. The Fund invests primarily in a
diversified portfolio of equity securities, including common stocks and other
forms of equity investments (e.g., securities convertible into common stocks),
issued by emerging market small cap companies that the Adviser believes have
above average growth, profitability and quality characteristics. For purposes of
the Fund, the Adviser considers a company to be a small cap company if it has a
float adjusted market capitalization at the time of purchase no larger than the
greater of $5 billion or the largest capitalized company included in the
MSCI Emerging Markets Small Cap Index (net). Securities of companies whose float
adjusted market capitalizations no longer meet this definition of small cap
after purchase may continue to be held in the Fund. Emerging market companies,
for purposes of the Fund, are companies organized under the laws of an emerging
market country or that have securities traded principally on an exchange or
over-the-counter in an emerging market country. Currently, emerging markets
include every country in the world except the United States, Canada, Japan,
Australia, New Zealand, Hong Kong, Singapore and most Western European
countries. The Fund’s investments are normally allocated among at least six
different countries and no more than 50% of the Fund’s equity holdings may be
invested in securities of issuers in one country at any given
time.
In
choosing investments, the Adviser performs fundamental company analysis and
focuses on stock selection. The Adviser generally seeks equity securities,
including common stocks, of emerging market companies that historically have had
superior growth, profitability and quality relative to local markets and
relative to companies within the same industry worldwide, and that are expected
to continue such performance. Such companies generally will exhibit superior
business fundamentals, including leadership in their field, quality products or
services, distinctive marketing and distribution, pricing flexibility and
revenue from products or services consumed on a steady, recurring basis. These
business characteristics should be accompanied by management that is shareholder
return-oriented and that uses conservative accounting policies. Companies with
above-average returns on equity, strong balance sheets and consistent,
above-average earnings growth will be the primary focus. Stock selection will
take into account both local and global comparisons.
The
Adviser will vary the Fund’s sector and geographic diversification based upon
the Adviser’s ongoing evaluation of economic, market and political trends
throughout the world. In making decisions regarding country allocation, the
Adviser will consider such factors as the conditions and growth potential of
various economies and securities markets, currency exchange rates, technological
developments in the various countries and other pertinent financial, social,
national and political factors.
PRINCIPAL
RISKS: The Fund’s
returns will vary, and you could lose money by investing in the
Fund. The following is a summary of the principal risks
associated with an investment in the Fund.
Equity Funds General Risk. Because the Fund
invests substantially all of its assets in equity securities of emerging market
small cap companies, the primary risk is that the value of the equity securities
it holds might decrease in response to the activities of an individual company
or in response to general market, business and economic conditions. If this
occurs, the Fund’s share price may also decrease. In addition, there is the risk
that individual securities may not perform as expected or a strategy used by the
Adviser may fail to produce its intended result.
Market Risk. The value of the Fund’s
investments may go up or down, sometimes rapidly or unpredictably. The value of
an investment may decline due to factors affecting securities markets generally
or particular
87
industries
represented in the securities markets. The value of an investment may decline
due to general market conditions that are not specifically related to a
particular company, such as real or perceived adverse economic conditions,
recessions, inflation, rapid interest rate changes, changes in the general
outlook for corporate earnings, changes in interest or currency rates or adverse
investor sentiment generally. Events such as war, acts of terrorism, social
unrest, natural disasters, the spread of infectious illness or other public
health threats could also significantly impact the Fund and its investments. The
value of an investment may also decline due to factors that affect a particular
industry or industries, such as labor shortages or increased production costs
and competitive conditions within an industry. During a general downturn in the
securities markets, multiple asset classes may decline in value simultaneously.
Geopolitical and other events may also disrupt securities markets and adversely
affect global economies and markets and thereby decrease the value of the Fund’s
investments.
Foreign Investment Risk. The risks of foreign
investments may include less publicly available information, less stringent
investor protections and disclosure standards, less governmental regulation and
supervision of foreign stock exchanges, brokers and issuers, share registration
and custody, a lack of uniform accounting, auditing and financial reporting
standards, practices and requirements, the possibility of expropriation, seizure
or nationalization, confiscatory taxation, limits on repatriation, adverse
changes in investment or exchange control regulations, political instability,
restrictions on the flow of international capital, imposition of foreign
withholding or other taxes, fluctuating currencies, inflation, difficulty in
obtaining and enforcing judgments against foreign entities or other adverse
political, social or diplomatic developments that could affect the Fund’s
investments. Foreign investments may be less liquid and their prices more
volatile than the securities of U.S. companies. The Fund is expected to incur
operating expenses that are higher than those of mutual funds investing
exclusively in U.S. equity securities due to the higher custodial fees
associated with foreign securities investments.
Currency Risk. The value of the Fund’s
portfolio may be affected by changes in exchange rates or control regulations.
If a local currency gains against the U.S. dollar, the value of the security
increases in U.S. dollar terms. If a local currency declines against the U.S.
dollar, the value of the security decreases in U.S. dollar terms. The currencies
of emerging market countries may experience a devaluation relative to the U.S.
dollar, and continued devaluations may adversely affect the value of the Fund’s
assets denominated in such currencies. Many emerging market countries have
experienced substantial rates of inflation for many years, and continued
inflation may adversely affect the economies and securities markets of such
countries.
Emerging Markets Risk. Foreign investment risk
is typically magnified in emerging markets, which are the less developed and
developing nations. Many emerging market countries have experienced substantial
rates of inflation for many years, and continued inflation may adversely affect
the economies and securities markets of such countries.
Geographic Risk. To the extent that the Fund
invests a significant portion of its assets in any one country or geographic
region, the Fund will be subject to greater risk of loss or volatility than if
the Fund always maintained wide geographic diversity among the countries and
geographic regions in which it invests. Investing in any one country or
geographic region makes the Fund more vulnerable to the risks of adverse
securities markets, exchange rates and social, political, regulatory and
economic events in that one country or geographic region.
Small and Micro Cap Company Risk. Stocks of
small and micro cap companies involve greater risk than those of larger, more
established companies. This is because small and micro cap companies may be in
earlier stages of development, may be dependent on a small number of products or
services, may lack substantial capital reserves and/or do not have proven track
records. Small and micro cap companies may be traded in low volumes. This can
increase volatility and increase the risk that the Fund will not be able to sell
a security on short notice at a reasonable price. The securities of small and
micro cap companies may be more volatile and less liquid than securities of
large capitalized companies. For purposes of the Fund, micro cap companies are
companies with market capitalizations of $500 million or less at the time
of the Fund’s investment.
88
Portfolio Turnover Rate Risk. Higher portfolio
turnover rates involve correspondingly higher transaction costs, which are borne
directly by the Fund. In addition, the Fund may realize significant short-term
and long-term capital gains if portfolio turnover rate is high, which will
result in taxable distributions to investors that may be greater than those made
by other funds with lower portfolio turnover rates.
Share Ownership Concentration Risk. To the
extent that a significant portion of the Fund’s shares is held by a limited
number of shareholders or their affiliates, there is a risk that the share
trading activities of these shareholders could disrupt the Fund’s investment
strategies, which could have adverse consequences for the Fund and other
shareholders (e.g., by requiring the Fund to sell investments at inopportune
times or causing the Fund to maintain larger-than-expected cash positions
pending acquisition of investments). In addition, separate accounts managed by
the Adviser may invest in the Fund and, therefore, the Adviser at times may have
discretionary authority over a significant portion of the assets of the Fund. In
such instances, the Adviser’s decision to make changes to or rebalance its
clients’ allocations in the separate accounts may substantially impact the
Fund’s performance.
Style Risk. Different investment styles (e.g.,
growth vs. value, quality bias, market capitalization focus) tend to shift in
and out of favor depending on market conditions and investor sentiment, and at
times when the growth investment style used by the Adviser for the Fund is out
of favor, the Fund may underperform other equity funds that use different
investment styles.
Liquidity Risk. Investments that trade less
frequently can be more difficult or more costly to buy, or to sell, than more
liquid or active investments. It may not be possible to sell or otherwise
dispose of illiquid securities both at the price and within a time period deemed
desirable by the Fund.
Focus Risk. To the extent that the Fund focuses
its investments in particular industries, asset classes or sectors of the
economy, any market changes affecting companies in those industries, asset
classes or sectors may impact the Fund’s performance.
Operational and Technology Risk. Cyber-attacks,
disruptions, or failures that affect the Fund’s service providers,
counterparties, market participants, or issuers of securities held by the Fund
may adversely affect the Fund and its shareholders, including by causing losses
for the Fund or impairing Fund operations.
The
Fund is not intended to be a complete investment program. The Fund is designed
for long-term investors.
The Fund involves a high level of risk and may not be
appropriate for everyone. You should only consider it for the aggressive
portion of your portfolio.
FUND
PERFORMANCE HISTORY: The information below provides some indication of
the risks of investing in the Fund by showing changes in the Fund’s performance
from year to year and by showing how the Fund’s average annual total returns for
the periods indicated compare with those of a broad measure of market
performance and an additional index. The Fund has added the
performance of the MSCI Emerging Markets Investable Market Index (IMI) which
represents a broad measure of market performance, to comply with new regulatory
requirements. The table also includes the performance of the MSCI Emerging
Markets Small Cap Index, which is generally representative of the market sectors
or types of investments in which the Fund invests.
The
Fund’s past performance (before and after taxes) does not necessarily indicate
how it will perform in the future. For more recent performance
information, go to www.williamblairfunds.com or
call 1‑800‑635‑2886.
89
Annual Total
Returns. The bar chart below provides an illustration of how the Fund’s
performance has varied in each of the last ten calendar years for Class N
shares.
|
|
|
| |
|
|
Highest Quarterly Return
27.69% (2Q20) |
|
Lowest Quarterly Return
(20.89)% (1Q20) |
Average Annual
Total Returns (For the periods ended December 31, 2023). The table below shows returns on a before-tax and
after-tax basis for Class N shares and on a before-tax basis for
Class I and Class R6 shares. After-tax returns for Class I and
Class R6 shares will vary. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. In some instances, the “Return After Taxes on
Distributions and Sale of Fund Shares” may be greater than the “Return Before
Taxes” because the investor is assumed to be able to use the capital loss on the
sale of Fund shares to offset other taxable capital gains.
Actual after-tax returns depend on an investor’s tax situation and may differ
from those shown. After-tax returns are not relevant to investors
who hold their Fund shares through tax-deferred arrangements, such as 401(k)
plans or individual retirement accounts.
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
|
5 Years |
|
|
10 Years |
|
Class N
Shares |
|
|
|
| |
|
|
| |
|
| |
Return
Before Taxes |
|
|
21.93% |
|
|
|
9.96% |
|
|
|
5.73% |
|
Return
After Taxes on Distributions |
|
|
21.92% |
|
|
|
9.29% |
|
|
|
4.93% |
|
Return
After Taxes on Distributions and Sale of Fund Shares |
|
|
12.99% |
|
|
|
7.91% |
|
|
|
4.42% |
|
|
|
| |
Class I
Shares |
|
|
|
| |
|
|
| |
|
| |
Return
Before Taxes |
|
|
22.25% |
|
|
|
10.23% |
|
|
|
6.02% |
|
|
|
| |
Class R6
Shares |
|
|
|
| |
|
|
| |
|
| |
Return
Before Taxes |
|
|
22.37% |
|
|
|
10.30% |
|
|
|
6.09% |
|
|
|
| |
MSCI Emerging
Markets IMI (net) (reflects no deduction for fees, expenses
or taxes) |
|
|
11.67% |
|
|
|
4.45% |
|
|
|
3.00% |
|
MSCI Emerging
Markets Small Cap Index (net) (reflects no deduction for
fees, expenses or taxes) |
|
|
23.92% |
|
|
|
9.92% |
|
|
|
5.34% |
|
MANAGEMENT:
Investment Adviser. William Blair Investment
Management, LLC is the investment adviser of the Fund.
Portfolio Managers. Todd M. McClone, D.J.
Neiman and Casey Preyss, Partners of the Adviser, co-manage the Fund.
Mr. McClone has co-managed the Fund since its inception in 2011.
Mr. Neiman has co-managed the Fund since 2021. Mr. Preyss has
co-managed the Fund since 2016.
90
PURCHASE AND SALE OF FUND SHARES:
Class N Share Purchase. The minimum
initial investment for an account generally is $2,500. The minimum subsequent
investment generally is $1,000. Certain exceptions to the minimum initial and
subsequent investment amounts may apply. See “Your Account—Class N Shares”
for additional information on eligibility requirements applicable to purchasing
Class N shares.
Class I Share Purchase. The minimum
initial investment for an account generally is $500,000 (or any lesser amount
if, in William Blair’s opinion, the investor has adequate intent and
availability of funds to reach a future level of investment of $500,000). There
is no minimum for subsequent purchases. There is no minimum initial investment
for qualified retirement plans, including, but not limited to, 401(k) plans, 457
plans, employer-sponsored 403(b) plans, defined benefit plans and other similar
accounts, or plans whereby Class I shares are held through omnibus accounts
(either at the plan level or the level of the plan administrator) and certain
other accounts. William Blair may make certain additional exceptions to the
minimum initial investment amount in its discretion. Class I shares are
only available to certain investors. See “Your Account—Class I Shares” for
additional information on the eligibility requirements and investment minimums
applicable to purchasing Class I shares.
Class R6 Share Purchase. The minimum initial
investment for an account is $1 million (or any lesser amount if, in
William Blair’s opinion, the investor has adequate intent and availability of
funds to reach a future level of investment of $1 million). There is no minimum
for subsequent purchases. There is no minimum initial investment for qualified
retirement plans, including, but not limited to, 401(k) plans, 457 plans,
employer-sponsored 403(b) plans, defined benefit plans and other similar
accounts, or plans whereby Class R6 shares are held through omnibus
accounts (either at the plan level or the level of the plan administrator) and
certain other accounts. William Blair may make certain additional exceptions to
the minimum initial investment amount in its discretion. Class R6 shares
are only available to certain investors. See “Your Account—Class R6 Shares”
for additional information on eligibility requirements and investment minimums
applicable to purchasing Class R6 shares.
Sale. Shares of the Fund are redeemable on any
day the New York Stock Exchange is open for business by mail, wire or telephone,
depending on the elections you make in the account application.
TAX INFORMATION: The Fund intends to make
distributions that may be taxed as ordinary income or capital gains, unless you
are investing through a tax-advantaged investment plan. If you are investing
through a tax-advantaged investment plan, withdrawals from the tax-advantaged
investment plan may be subject to taxes.
PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL
INTERMEDIARIES: If you purchase shares of the Fund through a
broker-dealer or other financial intermediary (such as a bank), the Fund and its
related companies may pay the intermediary for the sale of shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
91
WILLIAM
BLAIR CHINA GROWTH FUND |
SUMMARY
|
INVESTMENT
OBJECTIVE: The William Blair China Growth Fund seeks long-term capital
appreciation.
FEES AND
EXPENSES: This table describes the fees and expenses that you may pay if you
buy, hold and sell shares of the Fund. You may pay other fees, such as brokerage
commissions and other fees to financial intermediaries, which are not reflected
in the tables and examples below.
Shareholder Fees (fees paid directly from your
investment):
|
|
|
|
|
|
|
| |
|
|
Class I |
|
|
Class R6 |
|
Maximum
Sales Charge (Load) Imposed on Purchases |
|
|
None |
|
|
|
None |
|
Redemption
Fee |
|
|
None |
|
|
|
None |
|
Annual Fund Operating Expenses (expenses that
you pay each year as a percentage of the value of your investment):
|
|
|
|
|
|
|
| |
|
|
Class I |
|
|
Class R6 |
|
Management
Fee |
|
|
0.94% |
|
|
|
0.94% |
|
Distribution
(Rule 12b-1) Fee |
|
|
None |
|
|
|
None |
|
Other
Expenses |
|
|
8.84% |
|
|
|
8.81% |
|
| |
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
9.78% |
|
|
|
9.75% |
|
Fee
Waiver and/or Expense Reimbursement* |
|
|
8.79% |
|
|
|
8.81% |
|
| |
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
|
|
0.99% |
|
|
|
0.94% |
|
* |
William
Blair Investment Management, LLC (the “Adviser”) has entered into a
contractual agreement with the Fund to waive fees and/or reimburse
expenses in order to limit the Fund’s operating expenses (excluding
interest expenses, taxes, brokerage commissions, acquired fund fees and
expenses, dividend and interest expenses on short sales, other
investment-related costs and extraordinary expenses, such as litigation
and other expenses not incurred in the ordinary course of the Fund’s
business) to 0.99% and 0.94% of average daily net assets for Class I
and Class R6 shares, respectively, until April 30, 2025. The
Adviser may not terminate this contractual agreement prior to
April 30, 2025 without
the approval of the Fund’s Board of Trustees. The Adviser is entitled to
recoupment of previously waived fees and reimbursed expenses for a period
of three years subsequent to the Fund’s commencement of operations (i.e. August 27, 2024) to the extent
that such recoupment does not cause the annual Fund operating expenses
(after the recoupment is taken into account) to exceed both (1) the
expense limit in place when such amounts were waived or reimbursed and
(2) the Fund’s current expense limitation.
|
Example: This example is intended to help you compare the cost of investing
in shares of the Fund with the cost of investing in other mutual funds. The
example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
example also assumes that your investment has a 5% return each year and the
Fund’s operating expenses remain the same. The figures reflect the expense
limitation for the first year. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
Class I |
|
$101 |
|
$2,039 |
|
$3,797 |
|
$7,506 |
Class R6 |
|
96 |
|
2.030 |
|
3,784 |
|
7,492 |
Portfolio
Turnover: The Fund pays
transaction costs, such as commissions, when it buys and sells securities (or
“turns over” its portfolio). A higher portfolio turnover may indicate higher
transaction costs and may result in
92
higher
taxes when Fund shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example, affect the Fund’s
performance. During the most recent fiscal year, the Fund’s portfolio turnover
rate was 97% of the average value of its
portfolio.
PRINCIPAL INVESTMENT
STRATEGIES: Under normal
circumstances, the Fund invests at least 80% of its net assets (plus the amount
of any borrowings for investment purposes) in securities of companies with their
principal office in the People’s Republic of China (“PRC”). For the avoidance of
doubt, the PRC shall include mainland China, Hong Kong and Macau but exclude
Taiwan. The Fund may pursue this objective through purchases of class A-Shares
of companies listed on the Shanghai and Shenzhen Stock Exchanges, H-Shares
listed in Hong Kong, American Depositary Receipts, Global Depositary Receipts
and dual listed securities.
The
Fund invests primarily in a portfolio of equity securities, including common
stocks and other forms of equity investments (e.g., securities convertible into
common stocks), of companies of all sizes that the Adviser believes have
above-average growth, profitability and quality characteristics. The Adviser
seeks investment opportunities in companies at different stages of development
ranging from large, well-established companies to smaller companies at earlier
stages of development.
In
choosing investments, the Adviser performs fundamental company analysis and
focuses on stock selection. The Adviser generally seeks equity securities,
including common stocks, of Chinese companies that historically have had
superior growth, profitability and quality relative to local markets and
relative to companies within the same industry worldwide, and that are expected
to continue such performance. Such companies generally will exhibit superior
business fundamentals, including leadership in their field, quality products or
services, distinctive marketing and distribution, pricing flexibility and
revenue from products or services consumed on a steady, recurring basis. These
business characteristics should be accompanied by management that is shareholder
return-oriented and that uses conservative accounting policies. Companies with
above-average returns on equity, strong balance sheets and consistent,
above-average earnings growth will be the primary focus.
As
noted above, the Fund will invest in China A-Shares. The Fund may do so through
the Shanghai—Hong Kong and Shenzhen—Hong Kong Stock Connect Programs (“Stock
Connect”). Stock Connect is a securities trading and clearing program between
either the Shanghai Stock Exchange (“SSE”) or Shenzhen Stock Exchange (“SZSE”),
and any of the Stock Exchange of Hong Kong Limited (“SEHK”), China Securities
Depository or Clearing Corporation Limited (“ChinaClear”) and Hong Kong
Securities Clearing Company Limited (“HKSCC”). Stock Connect is designed to
permit mutual stock market access between mainland China and Hong Kong by
allowing investors to trade and settle shares on each market via their local
exchanges. Trading through Stock Connect is subject to daily quotas that limit
the maximum daily net purchases on any particular day. Accordingly, the Fund’s
direct investments in China A-Shares may be limited by such daily quotas.
Investments in China A-Shares may also be made through the use of the Investment
Manager’s Qualified Foreign Institutional Investor (“QFII”) license.
THE
FUND IS NON-DIVERSIFIED UNDER THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED,
AND MAY INVEST A LARGER PERCENTAGE OF ITS ASSETS IN FEWER ISSUERS THAN
DIVERSIFIED MUTUAL FUNDS.
PRINCIPAL
RISKS: The Fund’s
returns will vary, and you could lose money by investing in the
Fund. The following is a summary of the principal risks
associated with an investment in the Fund.
The Fund involves a high level of risk and may not be
appropriate for everyone. There can be no assurance that the Fund’s
investment objective will be achieved. The Fund is not intended to be a complete
investment program. The Fund is designed for long-term investors.
93
The
principal risks of investing in the Fund (in alphabetical order after the first
six risks) are:
Chinese Investment Risk. Because the fund
focuses its investments in China, the Fund’s performance is expected to be
closely tied to social, political, and economic conditions in China and to be
more volatile than the performance of more geographically diversified funds.
Investing in Chinese investments involves a higher degree of risk and special
considerations not typically associated with investing in other more established
economies or securities markets. The Fund’s investment exposure to China may
subject the Fund, to a greater extent than if investments were made in developed
countries, to the risks of adverse securities markets, exchange rates and
social, political, regulatory, economic, or environmental events and natural
disasters that may occur in the China region. The economy, industries, and
securities and currency markets of China are particularly vulnerable to the
region’s dependence on exports and international trade and increasing
competition from Asia’s other low-cost emerging economies. The imposition of
tariffs or other trade barriers by the U.S. or foreign governments on exports
from China may also have an adverse impact on Chinese issuers. In addition,
currency fluctuations, currency convertibility, interest rate fluctuations and
higher rates of inflation as a result of internal social unrest or conflicts
with other countries have had, and may continue to have, negative effects on the
economies and securities markets of China. The government of the PRC exercises
significant control over the economy in mainland China and may at any time alter
or discontinue economic reforms. Hong Kong and Macau do not exercise the same
level of control over their economies as does the PRC with respect to mainland
China, but changes to their political and economic relationships with the PRC
could adversely impact the Fund’s investments in Hong Kong and Macau.
Investing Through Stock Connect Risk. Investing
in China A-Shares through the Stock Connect program is subject to trading,
clearance, settlement, and other procedures, which could pose risks to the Fund.
Trading through Stock Connect is subject to market-wide trading volume and
market cap quota limitations, each of which may restrict or preclude the Fund’s
ability to invest in A-Shares through Stock Connect. A primary feature of Stock
Connect is the application of the home market’s laws and rules applicable to
investors in A-Shares. Therefore, the Fund’s investments in Stock Connect
A-Shares are generally subject to PRC securities regulations and listing rules,
among other restrictions. Additionally, restrictions on the timing of permitted
trading activity in A-Shares, including the imposition of local holidays in
either Hong Kong or mainland China and restrictions on purchasing and selling
the same security on the same day, may subject the Fund to the risk of price
fluctuations of China A-Shares at times when the Fund is unable to add to or
exit its position.
Equity Funds General Risk. Because the Fund
invests substantially all of its assets in equity securities of companies with
their principal office in the PRC, the primary risk is that the value of the
equity securities it holds might decrease in response to the activities of an
individual company or in response to general market, business and economic
conditions. If this occurs, the Fund’s share price may also decrease. In
addition, there is the risk that individual securities may not perform as
expected or a strategy used by the Adviser may fail to produce its intended
result.
Foreign Investment Risk. The risks of foreign
investments may include less publicly available information, less stringent
investor protections and disclosure standards, less governmental regulation and
supervision of foreign stock exchanges, brokers and issuers, share registration
and custody, less stringent or a lack of uniform accounting, auditing and
financial reporting standards, practices and requirements, the possibility of
expropriation, seizure or nationalization, confiscatory taxation, limits on
repatriation, adverse changes in investment or exchange control regulations,
political instability, restrictions on the flow of international capital,
imposition of foreign withholding or other taxes, fluctuating currencies,
inflation, difficulty in obtaining and enforcing judgments against foreign
entities or other adverse political, social or diplomatic developments that
could affect the Fund’s investments. Foreign investments may be less liquid and
their prices more volatile than the securities of U.S. companies. The Fund is
expected to incur operating expenses that are higher than those of mutual funds
investing exclusively in U.S. securities due to the higher custodial fees
associated with foreign securities investments.
94
Emerging Markets Risk. Foreign investment risk
is typically magnified in emerging markets, which are the less developed and
developing nations.
Market Risk. The value of the Fund’s
investments may go up or down, sometimes rapidly or unpredictably. The value of
an investment may decline due to factors affecting securities markets generally
or particular industries represented in the securities markets. The value of an
investment may decline due to general market conditions that are not
specifically related to a particular company, such as real or perceived adverse
economic conditions, recessions, inflation, rapid interest rate changes, changes
in the general outlook for corporate earnings, changes in interest or currency
rates or adverse investor sentiment generally. Events such as war, acts of
terrorism, social unrest, natural disasters, the spread of infectious illness or
other public health threats could also significantly impact the Fund and its
investments. The value of an investment may also decline due to factors that
affect a particular industry or industries, such as labor shortages or increased
production costs and competitive conditions within an industry. During a general
downturn in the securities markets, multiple asset classes may decline in value
simultaneously. Geopolitical and other events may also disrupt securities
markets and adversely affect global economies and markets and thereby decrease
the value of the Fund’s investments.
Currency Risk. The value of the Fund’s
portfolio may be affected by changes in exchange rates or control regulations.
If a non-U.S. currency gains against the U.S. dollar, the value of the security
increases in U.S. dollar terms. If a non-U.S. currency declines against the U.S.
dollar, the value of the security decreases in U.S. dollar terms.
Focus Risk. To the extent that the Fund focuses
its investments in particular industries, asset classes or sectors of the
economy, any market changes affecting companies in those industries, asset
classes or sectors may impact the Fund’s performance.
Liquidity Risk. Investments that trade less
frequently can be more difficult or more costly to buy, or to sell, than more
liquid or active investments. It may not be possible to sell or otherwise
dispose of illiquid securities both at the price and within a time period deemed
desirable by the Fund.
Non-Diversification Risk. The Fund is
non-diversified, meaning that it is permitted to invest a larger percentage of
its assets in fewer issuers than diversified mutual funds. Thus, the Fund may be
more susceptible to adverse developments affecting any single issuer held in its
portfolio, and may be more susceptible to greater losses because of these
developments.
Operational and Technology Risk. Cyber-attacks,
disruptions, or failures that affect the Fund’s service providers,
counterparties, market participants, or issuers of securities held by the Fund
may adversely affect the Fund and its shareholders, including by causing losses
for the Fund or impairing Fund operations.
Share Ownership Concentration Risk. To the
extent that a significant portion of the Fund’s shares is held by a limited
number of shareholders or their affiliates, there is a risk that the share
trading activities of these shareholders could disrupt the Fund’s investment
strategies, which could have adverse consequences for the Fund and other
shareholders (e.g., by requiring the Fund to sell investments at inopportune
times or causing the Fund to maintain larger-than-expected cash positions
pending acquisition of investments). In addition, separate accounts managed by
the Adviser may invest in the Fund and, therefore, the Adviser at times may have
discretionary authority over a significant portion of the assets of the Fund. In
such instances, the Adviser’s decision to make changes to or rebalance its
clients’ allocations in the separate accounts may substantially impact the
Fund’s performance.
Smaller Company Risk. Stocks of smaller
companies involve greater risk than those of larger, more established companies.
This is because smaller companies may be in earlier stages of development, may
be dependent on a small number of products or services, may lack substantial
capital reserves and/or do not have proven track records. Smaller companies may
be traded in low volumes. This can increase volatility and increase the risk
that the Fund will not be able to sell a security on short notice at a
reasonable price. The securities of smaller companies may be more volatile and
less liquid than securities of large capitalized companies.
95
Style Risk. Different investment styles (e.g.,
growth vs. value, quality bias, market capitalization focus) tend to shift in
and out of favor depending on market conditions and investor sentiment, and at
times when the investment style used by the Adviser for the Fund is out of
favor, the Fund may underperform other equity funds that use different
investment styles.
FUND
PERFORMANCE HISTORY: The information below provides some indication of
the risks of investing in the Fund by showing changes in the Fund’s performance
from year to year and by showing how the Fund’s average annual total returns for
the periods indicated compare with those of a broad measure of market
performance that is generally representative of the market sectors or types of
investments in which the Fund invests. The
Fund’s past performance (before and after taxes) does not necessarily indicate
how it will perform in the future. For more recent performance
information, go to www.williamblairfunds.com or
call 1‑800‑635‑2886.
Annual Total
Returns. The bar chart below provides an illustration of how the Fund’s
performance has varied in each of the calendar years since the Fund started for
Class I shares.
|
|
|
| |
|
|
Highest Quarterly Return
9.49% (4Q22) |
|
Lowest Quarterly Return
(24.07)% (3Q22) |
Average Annual
Total Returns (For the periods ended December 31,
2023). The table below shows returns on a before-tax and
after-tax basis for Class I shares and on a before-tax basis for
Class R6 shares. After-tax returns for Class R6 shares will
vary. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. In some instances, the “Return After Taxes on
Distributions and Sale of Fund Shares” may be greater than the “Return Before
Taxes” because the investor is assumed to be able to use the capital loss on the
sale of Fund shares to offset other taxable capital gains.
Actual after-tax returns depend on an investor’s tax situation and may differ
from those shown. After-tax returns are not relevant to investors
who hold their Fund shares through tax-deferred arrangements, such as 401(k)
plans or individual retirement accounts.
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
|
Since Fund Inception (August 27,
2021) |
|
Class I
Shares |
|
|
|
| |
|
| |
Return
Before Taxes |
|
|
(24.28)% |
|
|
|
(26.26)% |
|
Return
After Taxes on Distributions |
|
|
(24.36)% |
|
|
|
(26.29)% |
|
Return
After Taxes on Distributions and Sale of Fund Shares |
|
|
(14.32)% |
|
|
|
(18.94)% |
|
|
| |
Class R6
Shares |
|
|
|
| |
|
| |
Return
Before Taxes |
|
|
(24.38)% |
|
|
|
(26.32)% |
|
|
| |
MSCI China All
Shares Index (reflects no deduction for fees, expenses or
taxes) |
|
|
(11.53)% |
|
|
|
(16.59)% |
|
96
MANAGEMENT:
Investment Adviser. William Blair Investment
Management, LLC is the investment adviser of the Fund.
Portfolio Managers. Vivian Lin Thurston, a
Partner of the Adviser, manages the Fund. Ms. Lin Thurston has managed the
Fund since its inception in 2021.
PURCHASE
AND SALE OF FUND SHARES:
Class I Share Purchase. The minimum
initial investment for an account generally is $500,000 (or any lesser amount
if, in William Blair’s opinion, the investor has adequate intent and
availability of funds to reach a future level of investment of $500,000). There
is no minimum for subsequent purchases. There is no minimum initial investment
for qualified retirement plans, including, but not limited to, 401(k) plans, 457
plans, employer- sponsored 403(b) plans, defined benefit plans and other similar
accounts, or plans whereby Class I shares are held through omnibus accounts
(either at the plan level or the level of the plan administrator) and certain
other accounts. William Blair may make certain additional exceptions to the
minimum initial investment amount in its discretion. Class I shares are
only available to certain investors. See “Your Account—Class I Shares” for
additional information on the eligibility requirements and investment minimums
applicable to purchasing Class I shares.
Class R6 Share Purchase. The minimum
initial investment for an account is $1 million (or any lesser amount if,
in William Blair’s opinion, the investor has adequate intent and availability of
funds to reach a future level of investment of $1 million). There is no minimum
for subsequent purchases. There is no minimum initial investment for qualified
retirement plans, including, but not limited to, 401(k) plans, 457 plans,
employer- sponsored 403(b) plans, defined benefit plans and other similar
accounts, or plans whereby Class R6 shares are held through omnibus
accounts (either at the plan level or the level of the plan administrator) and
certain other accounts. William Blair may make certain additional exceptions to
the minimum initial investment amount in its discretion. Class R6 shares
are only available to certain investors. See “Your Account—Class R6 Shares”
for additional information on eligibility requirements and investment minimums
applicable to purchasing Class R6 shares.
Sale. Shares of the Fund are redeemable on any
day the New York Stock Exchange is open for business by mail, wire or telephone,
depending on the elections you make in the account application.
TAX INFORMATION: The Fund intends to make
distributions that may be taxed as ordinary income or capital gains, unless you
are investing through a tax-advantaged investment plan. If you are investing
through a tax-advantaged investment plan, withdrawals from the tax-advantaged
investment plan may be subject to taxes.
PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL
INTERMEDIARIES: If you purchase shares of the Fund through a
broker-dealer or other financial intermediary (such as a bank), the Fund and its
related companies may pay the intermediary for the sale of shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
97
WILLIAM
BLAIR EMERGING MARKETS DEBT FUND |
SUMMARY
|
INVESTMENT
OBJECTIVE: The William Blair Emerging Markets Debt Fund seeks to provide
attractive risk-adjusted returns relative to the Fund’s
benchmark.
FEES AND
EXPENSES: This table describes the fees and expenses that you may pay if you
buy, hold and sell shares of the Fund. You may pay other fees, such as brokerage
commissions and other fees to financial intermediaries, which are not reflected
in the tables and examples below.
Shareholder Fees (fees paid directly from your
investment):
|
|
|
|
|
|
|
| |
|
|
Class I |
|
|
Class R6 |
|
Maximum
Sales Charge (Load) Imposed on Purchases |
|
|
None |
|
|
|
None |
|
Redemption
Fee |
|
|
None |
|
|
|
None |
|
Annual Fund Operating Expenses (expenses that
you pay each year as a percentage of the value of your investment):
|
|
|
|
|
|
|
| |
|
|
Class I |
|
|
Class R6 |
|
Management
Fee |
|
|
0.65% |
|
|
|
0.65% |
|
Distribution
(Rule 12b-1) Fee |
|
|
None |
|
|
|
None |
|
Other
Expenses |
|
|
0.61% |
|
|
|
0.52% |
|
| |
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses |
|
|
1.26% |
|
|
|
1.17% |
|
Fee
Waiver and/or Expense Reimbursement* |
|
|
0.56% |
|
|
|
0.52% |
|
| |
|
|
|
|
|
|
|
Total
Annual Fund Operating Expenses After Fee Waiver and/or Expense
Reimbursement |
|
|
0.70% |
|
|
|
0.65% |
|
* |
William
Blair Investment Management, LLC (the “Adviser”) has entered into a
contractual agreement with the Fund to waive fees and/or reimburse
expenses in order to limit the Fund’s operating expenses (excluding
interest expenses, taxes, brokerage commissions, acquired fund fees and
expenses, dividend and interest expenses on short sales, other
investment-related costs and extraordinary expenses, such as litigation
and other expenses not incurred in the ordinary course of the Fund’s
business) to 0.70% and 0.65% of average daily net assets for Class I
and Class R6 shares, respectively, until April 30, 2025. The
Adviser may not terminate this contractual agreement prior to
April 30, 2025 without
the approval of the Fund’s Board of Trustees. The Adviser is entitled to
recoupment of previously waived fees and reimbursed expenses for a period
of three years subsequent to the Fund’s commencement of operations (i.e. May 25, 2024) to the extent
that such recoupment does not cause the annual Fund operating expenses
(after the recoupment is taken into account) to exceed both (1) the
expense limit in place when such amounts were waived or reimbursed and
(2) the Fund’s current expense limitation.
|
Example: This example is intended to help you compare the cost of investing
in shares of the Fund with the cost of investing in other mutual funds. The
example assumes that you invest $10,000 in the Fund for the time periods
indicated and then redeem all of your shares at the end of those periods. The
example also assumes that your investment has a 5% return each year and the
Fund’s operating expenses remain the same. The figures reflect the expense
limitation for the first year. Although your actual costs may be higher or
lower, based on these assumptions your costs would be:
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
3 Years |
|
5 Years |
|
10 Years |
Class I |
|
$72 |
|
$344 |
|
$638 |
|
$1,473 |
Class R6 |
|
66 |
|
320 |
|
593 |
|
1,374 |
98
Portfolio
Turnover: The Fund pays transaction costs, such as commissions, when it buys
and sells securities (or “turns over” its portfolio). A higher portfolio
turnover may indicate higher transaction costs and may result in higher taxes
when Fund shares are held in a taxable account. These costs, which are not
reflected in annual fund operating expenses or in the example, affect the Fund’s
performance. During the most recent fiscal year, the Fund’s portfolio turnover
rate was 106% of the average value of its
portfolio.
PRINCIPAL INVESTMENT
STRATEGIES: Under normal
circumstances, the Fund invests at least 80% of its net assets (plus the amount
of any borrowings for investment purposes) in debt instruments that are
economically tied to emerging market countries, which may be represented by
forwards or derivatives such as options, futures contracts or swap agreements.
Emerging markets include every country in the world except countries included in
the MSCI World Index.
Debt
securities in which the Fund invests include fixed-rate and floating-rate bonds
issued by various public (governmental) and private (corporate) issuers
(including private placements and restricted securities). The Fund invests a
significant portion of its assets in sovereign debt securities (debt securities
issued or guaranteed by foreign sovereign governments or their agencies,
authorities or political subdivisions or instrumentalities, and supranational
agencies) and debt securities of quasi-sovereign issuers (entities owned by a
sovereign government). The Fund may also invest in debt securities issued or
guaranteed by foreign corporations and foreign financial institutions. The Fund
may invest in debt securities of any credit rating, including investment grade
securities, below investment grade securities (commonly referred to as “high
yield” or “junk bonds”), and unrated securities. The Fund may invest up to a
maximum of 10% of the Fund’s net assets in distressed or defaulted debt
securities. The Fund may invest in securities of any maturity.
The
majority of the Fund’s investments are generally made in securities of issuers
based in South and Central America (including the Caribbean), Central Europe,
Eastern Europe, Asia, Africa and the Middle East. More specifically, the Fund
invests in countries where the Adviser is able to assess the specific political
and economic risks and in countries that have undertaken certain economic
reforms and reached certain growth objectives. Countries in which the Fund
invests include frontier markets (emerging markets that are early in their
development).
The
Fund invests in assets denominated in the currencies of economically developed
and politically stable countries that are members of the Organisation for
Economic Co-operation and Development (OECD), as well as in assets denominated
in local currency. The Adviser may, but is not required to, hedge the currency
risk associated with the Fund’s investments.
As
part of its investment strategy, the Fund may utilize derivatives, including
futures and forward contracts, swaps (including credit default swaps and total
return swaps), credit derivatives, and currency-related derivatives. Derivatives
are primarily utilized to hedge interest rate duration risk and foreign exchange
risk.
Additionally,
the Fund may maintain assets in cash, deposit, call or current accounts or
invest in short-term instruments, such as money market funds, U.S. or other
government securities, certificates of deposit, bankers’ acceptances or similar
temporary investments, to meet the expense needs of the Fund and/or to fund
withdrawals or for such other purposes as may be determined by the Adviser.
The
Adviser measures the Fund’s performance against the JPMorgan Emerging Markets
Bond Index (EMBI) Global Diversified, which is the Fund’s “benchmark” for
purposes of its investment objective. The Fund is actively managed within its
objective and is not constrained by a benchmark.
THE
FUND IS NON-DIVERSIFIED UNDER THE INVESTMENT COMPANY ACT OF 1940, AS AMENDED,
AND MAY INVEST A LARGER PERCENTAGE OF ITS ASSETS IN FEWER ISSUERS THAN
DIVERSIFIED MUTUAL FUNDS.
99
PRINCIPAL
RISKS: The Fund’s
returns will vary, and you could lose money by investing in the
Fund. The following is a summary of the principal risks
associated with an investment in the Fund.
The Fund involves a high level of risk and may not be
appropriate for everyone. There can be no assurance that the Fund’s
investment objective will be achieved. The Fund is not intended to be a complete
investment program. The Fund is designed for long-term investors.
The
principal risks of investing in the Fund (in alphabetical order after the first
six risks) are:
Market Risk. The value of the Fund’s
investments may go up or down, sometimes rapidly or unpredictably. The value of
an investment may decline due to factors affecting securities markets generally
or particular industries represented in the securities markets. The value of an
investment may decline due to general market conditions that are not
specifically related to a particular company, such as real or perceived adverse
economic conditions, recessions, inflation, rapid interest rate changes, changes
in the general outlook for corporate earnings, changes in interest or currency
rates or adverse investor sentiment generally. The value of an investment may
also decline due to factors that affect a particular industry or industries,
such as labor shortages or increased production costs and competitive conditions
within an industry. During a general downturn in the securities markets,
multiple asset classes may decline in value simultaneously. Geopolitical and
other events may also disrupt securities markets and adversely affect global
economies and markets and thereby decrease the value of the Fund’s investments.
Credit Risk. The value of the Fund’s fixed
income securities is subject to the ability of the issuers of such securities to
make interest payments or principal payment at maturity. The credit ratings of
issuers could change and negatively affect the Fund’s share price or yield. The
Fund’s net asset value and total return may be adversely affected by the
inability of the issuers of the Fund’s securities to make interest payments or
payment at maturity. The Fund’s investments in obligations issued or guaranteed
by U.S. Government agencies or instrumentalities may not be backed by the full
faith and credit of the United States and may differ in the degree of support
provided by the U.S. Government.
Foreign Investment Risk. The risks of foreign
investments may include less publicly available information, less stringent
investor protections and disclosure standards, less governmental regulation and
supervision of foreign stock exchanges, brokers and issuers, share registration
and custody, less stringent or a lack of uniform accounting, auditing and
financial reporting standards, practices and requirements, the possibility of
expropriation, seizure or nationalization, confiscatory taxation, limits on
repatriation, adverse changes in investment or exchange control regulations,
political instability, restrictions on the flow of international capital,
imposition of foreign withholding or other taxes, fluctuating currencies,
inflation, difficulty in obtaining and enforcing judgments against foreign
entities or other adverse political, social or diplomatic developments that
could affect the Fund’s investments. Foreign investments may be less liquid and
their prices more volatile than the securities of U.S. companies. The Fund is
expected to incur operating expenses that are higher than those of mutual funds
investing exclusively in U.S. securities due to the higher custodial fees
associated with foreign securities investments.
Emerging Markets Risk. Foreign investment risk
is typically magnified in emerging markets, which are the less developed and
developing nations. These risks are further magnified in frontier markets, which
are among the smallest and least mature investment markets.
Sovereign and Quasi-Sovereign Default Risk. The
Fund invests in securities issued by or guaranteed by non-U.S. sovereign
governments (known as sovereign debt securities) and in securities issued by
entities that are owned or guaranteed by non-U.S. sovereign governments (known
as quasi-sovereign debt securities). An issuer of sovereign or quasi-sovereign
debt held by the Fund, or the governmental authorities that control the
repayment of the debt, may be unable or unwilling to repay the principal or
interest when due. This may result from political
100
or
social factors, the general economic environment of a country or levels of
foreign debt or foreign currency exchange rates.
Interest Rate Risk. Normally, the values of
fixed income securities vary inversely with changes in prevailing interest
rates. The value of the Fund’s fixed income securities tends to decrease when
interest rates rise and tends to increase when interest rates fall. Securities
with longer maturities or durations held by the Fund are generally more
sensitive to interest rate changes. As such, securities with longer maturities
or durations are usually more volatile than those with shorter maturities or
durations. The negative impact on fixed income securities from rising interest
rates could be swift and significant and negatively impact the Fund’s net asset
value. The U.S. Federal Reserve raised interest rates during 2022 and 2023, and
the future of interest rates remains uncertain. A rising interest rate
environment may also result in periods of increased redemptions from fixed
income funds and increased supply in the market due to selling activity to meet
redemptions. If the Fund has to liquidate portfolio securities to meet
redemptions in such an environment, it may have to do so at disadvantageous
times and prices, which could negatively impact the Fund’s net asset value.
Aggressive Investment Technique Risk. The Fund
may use investment techniques and financial instruments that may be considered
aggressive, including but not limited to the use of futures contracts, options
on futures contracts, securities and indices, forward contracts, swap agreements
and similar instruments. Such techniques may also include taking short positions
or using other techniques that are intended to provide inverse exposure to a
particular market or other asset class, as well as leverage, which can expose
the Fund to potentially dramatic losses or gains. These techniques may expose
the Fund to potentially dramatic losses in the value of certain of its portfolio
holdings.
Counterparty and Contractual Default Risk. The
Fund’s investments in derivatives and other financial instruments that involve
counterparties subject the Fund to the risk that the counterparty could default
on its obligations under the agreement, either through the counterparty’s
failure or inability to perform its obligations or bankruptcy.
Credit Default Swap Risk. Credit default swaps
are subject to the credit risk of the underlying reference obligation and to
counterparty credit risk. If the counterparty fails to meet its obligations, the
Fund may lose money. Credit default swaps are also subject to the risk that the
Adviser will not properly assess the risk of the underlying reference
obligation. If the Fund is selling credit protection, there is a risk that a
credit event will occur and that the Fund will have to pay the counterparty. If
the Fund is buying credit protection, there is a risk that no credit event will
occur and the Fund will receive no benefit for the premium paid. Credit default
swaps may be difficult to value and may have the effect of leverage on the Fund.
Currency Risk. The value of the Fund’s
portfolio may be affected by changes in exchange rates or control regulations.
If a non-U.S. currency gains against the U.S. dollar, the value of the security
increases in U.S. dollar terms. If a non-U.S. currency declines against the U.S.
dollar, the value of the security decreases in U.S. dollar terms.
Derivatives Risk. Investing in derivatives,
including futures and forward contracts, swaps, credit derivatives, and
currency-related derivatives, involves investment techniques and risks different
from those associated with ordinary mutual fund securities transactions and may
involve increased transaction costs. The Fund’s investment in derivatives may
rise or fall more rapidly in value than other investments and may reduce the
Fund’s returns. Changes in the value of the derivative may not correlate
perfectly, or at all, with the underlying asset, reference rate or index, and
the Fund could lose more than the principal amount invested. Derivatives also
may be subject to certain other risks such as leveraging risk, liquidity risk,
interest rate risk, market risk, credit risk, counterparty risk, operational
risk, legal risk, management risk and the risk of mispricing or improper
valuation. Derivatives also may not behave as anticipated by the Fund,
especially in abnormal market conditions. The use of derivatives may increase
the volatility of the Fund’s net asset value. Derivatives may be leveraged such
that a small investment in derivative instruments can have a significant impact
on the Fund’s exposure to stock market
101
values,
interest rates, currency exchange rates or other investments. As a result, a
relatively small price movement in a derivatives contract may cause an immediate
and substantial loss or gain. It may be difficult or impossible for the Fund to
purchase or sell certain derivatives in sufficient amounts to achieve the
desired level of exposure, which may result in a loss or may be costly to the
Fund. In addition, the possible lack of a liquid secondary market for certain
derivatives and the resulting inability of the Fund to sell or otherwise close
out a derivatives position could expose the Fund to losses and could make such
derivatives more difficult for the Fund to value accurately. Some derivatives
are more sensitive to market price fluctuations and to interest rate changes
than other investments. The Fund also could suffer losses related to its
derivatives positions as a result of unanticipated market movements, which
losses are potentially unlimited. The Fund also may be exposed to losses if the
counterparty in the transaction does not fulfill its contractual obligation. In
addition, derivatives traded over-the-counter (“OTC derivatives”) do not benefit
from the protections provided by exchanges in the event that a counterparty is
unable to fulfill its contractual obligation. Such OTC derivatives therefore
involve greater counterparty and credit risk and may be more difficult to value
than exchange-traded derivatives. When a derivative is used as a hedge against a
position that the Fund holds, any loss generated by the derivative should
generally be offset by gains on the hedged instrument, and vice versa. While
hedging can reduce or eliminate losses, it also can reduce or eliminate gains.
Hedges are sometimes subject to imperfect matching between the derivative and
the hedged investment, and there can be no assurance that the Fund’s hedging
transactions will be effective. Also, suitable derivative transactions may not
be available in all circumstances. Derivatives are subject to fees and other
costs which are not reflected in the Annual Fund Operating Expenses table.
Derivatives
are also subject to liquidity risk. Liquidity risk is the risk that a derivative
instrument cannot be sold, closed out or replaced quickly at or very close to
its fundamental value. Generally, exchange-traded derivatives are very liquid
because the exchange clearinghouse is the counterparty of every contract. OTC
derivatives are less liquid than exchange-traded derivatives since they often
can be closed out only with the other party to the transaction. The Fund’s
ability to sell or close out a position in an instrument prior to expiration or
maturity depends on the existence of a liquid secondary market or, in the
absence of such a market, the ability and willingness of the counterparty to
enter into a transaction closing out the position. Therefore, there is no
assurance that any derivatives position can be sold or closed out at a time and
price that is favorable to the Fund.
Distressed Debt Risk. When
the Fund invests in obligations of financially troubled companies (sometimes
known as “distressed” securities), there exists the risk that the transaction
involving such debt obligations will be unsuccessful, take considerable time or
will result in a distribution of cash or a new security or obligation in
exchange for the stressed and distressed debt obligations, the value of which
may be less than the Fund’s purchase price of such debt obligations.
Furthermore, if an anticipated transaction does not occur, the Fund may be
required to sell its investment at a loss or hold its investment pending
bankruptcy proceedings in the event the issuer files for bankruptcy.
Floating and Variable Rate Securities Risk. For
floating and variable rate securities, there may be a lag between an actual
change in the underlying interest rate benchmark and the reset time for an
interest payment of such a security, which could harm or benefit the Fund,
depending on the interest rate environment or other circumstances. In a rising
interest rate environment, for example, a floating or variable rate security
that does not reset immediately would prevent the Fund from taking full
advantage of rising interest rates in a timely manner. However, in a declining
interest rate environment, the Fund may benefit from a lag due to a security’s
interest rate payment not being immediately impacted by a decline in interest
rates.
Certain
floating and variable rate securities have an interest rate floor feature, which
prevents the interest rate payable by the security from dropping below a
specified level as compared to a reference interest rate (the “reference rate”).
Such a floor protects the Fund from losses resulting from a decrease in the
reference rate below the specified level. However, if the reference rate is
below the floor, there will be a lag between a rise in the reference rate and a
rise in the interest rate payable by the security, and the Fund may not benefit
from increasing interest rates for a significant amount of time.
102
Geographic Risk. To the extent that the Fund
invests a significant portion of its assets in any one country or geographic
region, the Fund will be subject to greater risk of loss or volatility than if
the Fund always maintained wide geographic diversity among the countries and
geographic regions in which it invests. Investing in any one country or
geographic region makes the Fund more vulnerable to the risks of adverse
securities markets, exchange rates and social, political, regulatory and
economic events in that one country or geographic region.
Government and Regulatory Risk. Future
regulatory developments could impact the Fund’s ability to invest in certain
derivatives. It is possible that government regulation of various types of
derivative instruments, including futures, options and swap agreements, may
limit or prevent the Fund from using such instruments as a part of its
investment strategies, and could ultimately prevent the Fund from being able to
achieve its investment objective. It is impossible to predict the effects of
future legislation and regulation in this area, but the effects could be
substantial and adverse. It is possible that legislative and regulatory activity
could limit or restrict the ability of the Fund to use certain derivatives as a
part of its investment strategies and could alter, perhaps to a material extent,
the nature of an investment in the Fund or the ability of the Fund to continue
to implement its investment strategies.
High Yield Securities Risk. The Fund invests in
instruments including junk bonds and instruments that may be issued by companies
that are highly leveraged, less creditworthy or financially distressed. These
investments are considered to be speculative and are subject to greater risk of
loss, greater sensitivity to economic changes, valuation difficulties and
potential illiquidity. Such investments are subject to additional risks
including subordination to other creditors, no collateral or limited rights in
collateral, lack of a regular trading market, extended settlement periods,
liquidity risks, prepayment risks, and lack of publicly available information.
Because some instruments may have a more limited secondary market, liquidity and
valuation risk is more pronounced for the Fund than for funds that invest
primarily in other types of fixed income instruments or equity securities.
Income Risk. The income received by the Fund
may decrease as a result of a decline in interest rates.
Leverage Risk. The Fund’s investments in
derivatives or exposure to derivatives through other investment vehicles expose
the Fund to leverage inherent in such instruments. Such leveraged investments
can amplify the effects of market volatility on the Fund’s net asset value
(i.e., relatively small market movements
may result in large changes in the Fund’s net asset value) and make the Fund’s
returns more volatile. At times, the Fund’s leveraged investments may cause the
Fund’s investment exposure to exceed its net assets and could cause the Fund to
experience substantial losses, including the risk of total loss, if the market
moves against the Fund. The use of leveraged investments may also cause the Fund
to liquidate portfolio positions when it would not be advantageous to do so in
order to satisfy its obligations. The use of leveraged investments may also
cause the Fund to have higher expenses than those of mutual funds that do not
use such techniques.
Liquidity Risk. Investments that trade less
frequently can be more difficult or more costly to buy, or to sell, than more
liquid or active investments. It may not be possible to sell or otherwise
dispose of illiquid securities both at the price and within a time period deemed
desirable by the Fund.
Non-Diversification Risk. The Fund is
non-diversified, meaning that it is permitted to invest a larger percentage of
its assets in fewer issuers than diversified mutual funds. Thus, the Fund may be
more susceptible to adverse developments affecting any single issuer held in its
portfolio, and may be more susceptible to greater losses because of these
developments.
Operational and Technology Risk. Cyber-attacks,
disruptions, or failures that affect the Fund’s service providers,
counterparties, market participants, or issuers of securities held by the Fund
may adversely affect the Fund and its shareholders, including by causing losses
for the Fund or impairing Fund operations.
Portfolio Turnover Rate Risk. Higher portfolio
turnover rates involve correspondingly higher transaction costs, which are borne
directly by the Fund. In addition, the Fund may realize significant short-term
and
103
long-term
capital gains if portfolio turnover rate is high, which will result in taxable
distributions to investors that may be greater than those made by other funds
with lower portfolio turnover rates.
Private Placement Risk. Investments in private
placements may be difficult to sell at the time and at the price desired by the
Fund; companies making private placements may make less information available
than publicly offered companies; and privately placed securities are more
difficult to value than publicly traded securities. These factors may have a
negative effect on the performance of the Fund. Securities acquired through
private placements are not registered for resale in the general securities
market and may be classified as illiquid.
The
futures, options and swaps markets are subject to comprehensive statutes,
regulations, and margin requirements. In addition, the U.S. Securities and
Exchange Commission, Commodity Futures Trading Commission and the exchanges are
authorized to take extraordinary actions in the event of a market emergency,
including, for example, the implementation or reduction of speculative position
limits, the implementation of higher margin requirements, the establishment of
daily price limits and the suspension of trading. The regulation of futures,
options and swaps transactions in the United States is a changing area of law
and is subject to modification by government and judicial action.
Share Ownership Concentration Risk. To the
extent that a significant portion of the Fund’s shares is held by a limited
number of shareholders or their affiliates, there is a risk that the share
trading activities of these shareholders could disrupt the Fund’s investment
strategies, which could have adverse consequences for the Fund and other
shareholders (e.g., by requiring the Fund to sell investments at inopportune
times or causing the Fund to maintain larger-than-expected cash positions
pending acquisition of investments). In addition, separate accounts managed by
the Adviser may invest in the Fund and, therefore, the Adviser at times may have
discretionary authority over a significant portion of the assets of the Fund. In
such instances, the Adviser’s decision to make changes to or rebalance its
clients’ allocations in the separate accounts may substantially impact the
Fund’s performance.
FUND
PERFORMANCE HISTORY: The information below provides some indication of
the risks of investing in the Fund by showing changes in the Fund’s performance
from year to year and by showing how the Fund’s average annual total returns for
the periods indicated compare with those of a broad measure of market
performance and an additional index. The Fund has added the
performance of the Bloomberg Global Aggregate Index, which represents a broad
measure of market performance, to comply with new regulatory requirements. The
table also includes the performance of the JPMorgan Emerging Markets Bond Index
(EMBI) Global Diversified, which is generally representative of the market
sectors or types of investments in which the Fund invests.
The
Fund’s past performance (before and after taxes) does not necessarily indicate
how it will perform in the future. For more recent performance
information, go to www.williamblairfunds.com or
call 1‑800‑635‑2886.
Annual Total
Returns. The bar chart below provides an illustration of how the Fund’s
performance has varied in each of the calendar years since the Fund started for
Class I shares.
|
|
|
| |
|
|
Highest Quarterly Return
10.05% (4Q23) |
|
Lowest Quarterly Return
(13.36)% (2Q22) |
104
Average Annual
Total Returns (For the periods ended December 31,
2023). The table below shows returns on a before-tax and
after-tax basis for Class I shares and on a before-tax basis for
Class R6 shares. After-tax returns for Class R6 shares will
vary. After-tax returns are calculated using the
historical highest individual federal marginal income tax rates and do not
reflect the impact of state and local taxes. In some instances, the “Return After Taxes on
Distributions and Sale of Fund Shares” may be greater than the “Return Before
Taxes” because the investor is assumed to be able to use the capital loss on the
sale of Fund shares to offset other taxable capital gains.
Actual after-tax returns depend on an investor’s tax situation and may differ
from those shown. After-tax returns are not relevant to investors
who hold their Fund shares through tax-deferred arrangements, such as 401(k)
plans or individual retirement accounts.
|
|
|
|
|
|
|
| |
|
|
1 Year |
|
|
Since Fund Inception (May 25,
2021) |
|
Class I
Shares |
|
|
|
| |
|
| |
Return
Before Taxes |
|
|
13.41% |
|
|
|
(2.79)% |
|
Return
After Taxes on Distributions |
|
|
10.35% |
|
|
|
(5.24)% |
|
Return
After Taxes on Distributions and Sale of Fund Shares |
|
|
7.80% |
|
|
|
(3.17)% |
|
|
| |
Class R6
Shares |
|
|
|
| |
|
| |
Return
Before Taxes |
|
|
13.48% |
|
|
|
(2.75)% |
|
|
| |
Bloomberg
Global Aggregate Index (reflects no deduction for fees,
expenses or taxes) |
|
|
5.72% |
|
|
|
(5.46)% |
|
JPMorgan
EMBI Global Diversified (reflects no
deduction for fees, expenses or taxes) |
|
|
11.09% |
|
|
|
(3.51)% |
|
MANAGEMENT:
Investment Adviser. William Blair Investment
Management, LLC is the investment adviser of the Fund.
Portfolio Managers. Marcelo Assalin, a Partner
of the Adviser, and Marco Ruijer and Jared Lou, Associates of the Adviser,
co-manage the Fund. Mr. Assalin and Mr. Ruijer have co-managed the
Fund since its inception in 2021. Mr. Lou has co-managed the Fund since 2024.
PURCHASE
AND SALE OF FUND SHARES:
Class I Share Purchase. The minimum
initial investment for an account generally is $500,000 (or any lesser amount
if, in William Blair’s opinion, the investor has adequate intent and
availability of funds to reach a future level of investment of $500,000). There
is no minimum for subsequent purchases. There is no minimum initial investment
for qualified retirement plans, including, but not limited to, 401(k) plans, 457
plans, employer-sponsored 403(b) plans, defined benefit plans and other similar
accounts, or plans whereby Class I shares are held through omnibus accounts
(either at the plan level or the level of the plan administrator) and certain
other accounts. William Blair may make certain additional exceptions to the
minimum initial investment amount in its discretion. Class I shares are
only available to certain investors. See “Your Account—Class I Shares” for
additional information on the eligibility requirements and investment minimums
applicable to purchasing Class I shares.
Class R6 Share Purchase. The minimum
initial investment for an account is $1 million (or any lesser amount
if, in William Blair’s opinion, the investor has adequate intent and
availability of funds to reach a future level of investment of $1 million).
There is no minimum for subsequent purchases. There is no minimum initial
investment for qualified retirement plans, including, but not limited to, 401(k)
plans, 457 plans,
employer-sponsored
403(b) plans, defined benefit plans and other similar accounts, or plans whereby
Class R6 shares are held through omnibus accounts (either at the plan level
or the level of the plan administrator) and
105
certain
other accounts. William Blair may make certain additional exceptions to the
minimum initial investment amount in its discretion. Class R6 shares are
only available to certain investors. See “Your Account—Class R6 Shares” for
additional information on eligibility requirements and investment minimums
applicable to purchasing Class R6 shares.
Sale. Shares of the Fund are redeemable on any
day the New York Stock Exchange is open for business by mail, wire or telephone,
depending on the elections you make in the account application.
TAX INFORMATION: The Fund intends to make
distributions that may be taxed as ordinary income or capital gains, unless you
are investing through a tax-advantaged investment plan. If you are investing
through a tax-advantaged investment plan, withdrawals from the tax-advantaged
investment plan may be subject to taxes.
PAYMENTS TO BROKER-DEALERS AND OTHER FINANCIAL
INTERMEDIARIES: If you purchase shares of the Fund through a
broker-dealer or other financial intermediary (such as a bank), the Fund and its
related companies may pay the intermediary for the sale of shares and related
services. These payments may create a conflict of interest by influencing the
broker-dealer or other intermediary and your salesperson to recommend the Fund
over another investment. Ask your salesperson or visit your financial
intermediary’s website for more information.
106
ADDITIONAL
INFORMATION REGARDING INVESTMENT OBJECTIVES AND STRATEGIES
Investment
Objectives and Strategies
The
Growth Fund, Large Cap Growth Fund, Mid Cap Value Fund, Small-Mid Cap Core Fund,
Small-Mid Cap Growth Fund, Small-Mid Cap Value Fund, Small Cap Growth Fund,
Small Cap Value Fund, Global Leaders Fund, International Leaders Fund,
International Growth Fund, Institutional International Growth Fund,
International Small Cap Growth Fund, Emerging Markets Leaders Fund, Emerging
Markets Growth Fund, Emerging Markets ex China Growth Fund, Emerging Markets
Small Cap Growth Fund and China Growth Fund each seek long-term capital
appreciation.
The
Emerging Markets Debt Fund seeks to provide attractive risk-adjusted returns
relative to the Fund’s benchmark.
The
Summary Sections describe each Fund’s principal investment policies and
strategies intended to achieve each Fund’s investment objective. The investment
types detailed in each Fund’s Summary Section are further described in the
Investment Glossary included in this Prospectus and in the Statement of
Additional Information. For each Fund with an 80% investment policy, the Fund
will provide shareholders with at least 60 days’ notice of any changes to its
80% investment policy. In addition, each of the Mid Cap Value Fund, Small-Mid
Cap Value Fund, China Growth Fund, Emerging Markets ex China Growth Fund and
Emerging Markets Debt Fund will provide shareholders with at least 60 days’
notice of any changes to its investment objective. For the avoidance of doubt,
in appropriate circumstances, synthetic instruments, such as derivatives, and
other investment companies will count toward a Fund’s 80% investment policy if
those instruments have economic characteristics similar to the other investments
included in the 80% policy.
Forward Foreign Currency Transactions. A
forward foreign currency contract is an agreement to purchase or sell a specific
currency at a specified future date and price agreed to by the parties at the
time of entering into the contract. A Fund will not engage in forward currency
contracts in which the specified future date is more than one year from the time
of entering into the contract. A Fund will not enter into a forward currency
contract if such contract would obligate the Fund to deliver an amount of
foreign currency in excess of the value of the Fund’s securities or other assets
denominated in that currency.
The
Investment Glossary included in this Prospectus and the Statement of Additional
Information contain additional information regarding the investment types
described above.
Temporary Defensive Position. Each Fund may
significantly alter its make-up as a temporary defensive strategy. A defensive
strategy will be employed only if, in the judgment of the Adviser, investments
in a Fund’s usual markets or types of securities become decidedly unattractive
because of current or anticipated adverse economic, financial, political and
social factors. For temporary defensive purposes, a Fund may invest up to 100%
of its assets in other types of securities, including high-quality commercial
paper, obligations of banks and savings institutions, U.S. Government
securities, government agency securities and repurchase agreements, or it may
retain funds in cash. When a Fund is invested defensively, it may not meet its
investment objective.
Use of Derivatives and ETFs for Managing Large Fund
Flows. Certain Funds may use derivative instruments and securities of
other investment companies such as exchange-traded funds (“ETFs”) to equitize
cash in situations involving large cash inflows or anticipated large
redemptions. Derivatives are financial contracts whose value depends on, or is
derived from, the value of an underlying asset, reference rate or index.
Investing in derivatives involves investment techniques and risks different from
those associated with ordinary mutual fund securities transactions and may
involve increased transaction costs. Each Fund’s investment in derivatives may
rise or fall more rapidly in value than other investments and may reduce each
Fund’s returns. Changes in the value of the derivative may not correlate
perfectly, or at all, with the underlying asset, reference rate or index, and
each Fund could lose more than the principal amount invested. Derivatives also
may be subject to certain other risks such as leveraging risk, liquidity risk,
interest rate risk, market risk, credit risk, counterparty risk, operational
risk, legal risk, management risk and the risk of mispricing or improper
valuation. Derivatives
107
also
may not behave as anticipated, especially in abnormal market conditions. The use
of derivatives may increase the volatility of a Fund’s net asset value.
Derivatives are subject to fees and other costs which are not reflected in the
Annual Fund Operating Expenses table. Each Fund may also use derivatives for
risk management and hedging purposes, as discussed further in the Statement of
Additional Information.
The
risks of investment in other investment companies typically reflect the risk of
the types of securities in which the other investment companies invest.
Investments in ETFs are subject to the additional risk that shares of the ETF
may trade at a premium or discount to their net asset value per share. When a
Fund invests in another investment company, shareholders of the Fund bear their
proportionate share of the other investment company’s fees and expenses as well
as their share of the Fund’s fees and expenses. There may also not be an active
trading market available for shares of some ETFs. Additionally, trading of ETF
shares may be halted and ETF shares may be delisted by the listing exchange.
Portfolio Turnover. No Fund intends to trade
portfolio securities for the purpose of realizing short-term profits. However,
each Fund will adjust its portfolio as considered advisable in view of
prevailing or anticipated market conditions and the Fund’s investment objective,
and there is no limitation on the length of time securities must be held by the
Fund prior to being sold. Portfolio turnover rate will not be a limiting factor
for a Fund. The Emerging Markets Small Cap Growth Fund and Emerging Markets Debt
Fund each had a portfolio turnover rate at or higher than 100% for the year
ended December 31, 2023. Higher portfolio turnover rates involve
correspondingly higher transaction costs, which are borne directly by a Fund. In
addition, a Fund may realize significant short-term and long-term capital gains
if portfolio turnover rate is high, which will result in taxable distributions
to investors that may be greater than those made by other funds with lower
portfolio turnover rates. Tax and transaction costs may lower a Fund’s effective
return for investors.
ESG Investing. The Adviser’s assessment of
current and prospective portfolio holdings typically integrates an analysis of
applicable environmental, social and governance (collectively, “ESG”) factors.
Typically, the ESG factors considered by the Adviser include sustainability
risks related to (i) environmental factors such as climate change, natural
resources stewardship, and pollution and waste, (ii) social factors such as
human capital, customer well-being, supply chain management, and community
relations, and (iii) governance factors such as corporate governance and
corporate culture. The Adviser believes ESG factor integration assists the
Funds’ investment teams to better understand the risks and the opportunities
that may affect the company’s business or operations. ESG factors are considered
based on criteria developed by the Adviser’s investment teams, and they are
integrated with other relevant factors to provide a holistic assessment of
companies. The Adviser may use research from third parties such as global
investment banks and ESG rating providers as a complement to its analysis. The
Adviser seeks to ensure that the investment teams are fully aware of companies’
ESG risks and opportunities by integrating ESG factors into the investment
process in a systematic manner. The emphasis on ESG factors depends on the
importance of these factors to the relevant industry and the unique
circumstances of each company. The use of such factors and the individual
factors utilized may be changed by the Adviser without Fund shareholder
approval. Integrating ESG analysis into investment decisions requires
qualitative determinations and is often subjective by nature, and there can be
no assurance that the process utilized by the Funds or any judgment exercised by
the Adviser will reflect the beliefs or values of any particular investor.
Certain investments may be dependent on U.S. and foreign government policies,
including tax incentives and subsidies, which may change without notice.
Additionally, there is no guarantee that the Adviser’s use of ESG factors will
operate as expected when addressing positive social or environmental benefits.
The Adviser does not use ESG factors as the sole criteria to include or exclude
companies or sectors from its investable universe. Rather, when evaluating
potential benefits and risks of an investment, the Adviser focuses on ESG issues
when and to the extent that it believes ESG issues may have a significant impact
on a company’s financial performance during the Funds’ investment horizons.
For
the Emerging Markets Debt Fund, the Adviser’s assessment of current and
prospective portfolio holdings also typically integrates an analysis of
applicable ESG factors. The Adviser believes a robust, disciplined research
process helps to uncover mispricing in emerging markets debt, and the Fund’s
investment team integrates ESG factors in a structured, quantitative, and
qualitative process that is designed to provide a holistic
108
assessment
of an issuer’s opportunities and risks. The Adviser’s assessment of ESG factors
for emerging market debt sovereign issuers is guided by a proprietary scoring
model that incorporates data obtained from third-party vendors it deems reliable
and publicly available sources. The Adviser embeds ESG factors in its valuation
tools and relies on a multitude of factors, including scores from its
proprietary sovereign risk model, when choosing to invest in a country. When
assessing ESG risks for emerging market corporate issuers, the Adviser uses a
proprietary scorecard and takes into consideration not only whether issuers have
addressed ESG issues through policies, but also whether they have
(i) identified points of improvement; (ii) established concrete
targets to improve them; and (iii) exhibited an ability to deliver on these
targets over time. The Adviser complements the current state analysis by
incorporating a forward-looking view on each issuer’s progress concerning ESG
factors by attributing an outlook—positive, negative or neutral—to its overall
ESG score. The use of ESG factors and the individual factors utilized may be
changed by the Adviser without Fund shareholder approval. Integrating ESG
analysis into investment decisions requires qualitative determinations and is
often subjective by nature, and there can be no assurance that the process
utilized by the Fund or any judgment exercised by the Adviser will reflect the
beliefs or values of any particular investor. Additionally, there is no
guarantee that the Adviser’s use of ESG factors will operate as expected when
addressing positive social or environmental benefits. The Adviser does not use
ESG factors as the sole criteria to include or exclude companies or sectors from
its investable universe. Rather, when evaluating potential benefits and risks of
an investment, the Adviser focuses on ESG factors when and to the extent that it
believes ESG factors may have a significant impact on an issuer’s financial
performance during the Fund’s investment horizons.
Because
ESG factor analysis is used as one part of the Adviser’s overall investment
process, a Fund may still invest in securities of issuers that market
participants may view as having a high ESG risk profile. Incorporation of ESG
factors into a Fund’s investment process may cause the Fund to perform
differently in comparison to funds that do not incorporate such factors. When
integrating ESG factors into the investment process, the Adviser may rely on
third-party data it believes to be reliable, but it does not guarantee the
accuracy of such third-party data. ESG information from third-party data
providers may be incomplete, inaccurate, or unavailable, which could adversely
impact the investment process. The regulatory landscape with respect to ESG
integration in the United States is still developing and future rules and
regulations may require a Fund to modify or alter its investment process with
respect to ESG integration.
Portfolio Holdings. A description on the
policies and procedures with respect to the disclosure of each Fund’s portfolio
securities is available in the Statement of Additional Information.
Additional Information About the Funds. Each
Fund is a series of William Blair Funds, an open-end management investment
company. The Adviser provides management and investment advisory services to the
Funds. This Prospectus doesn’t tell you about every policy or risk of investing
in each Fund. If you want more information on each Fund’s allowable securities
and investment practices and the characteristics and risks of each one, you may
want to request a copy of the Statement of Additional Information (the back
cover tells you how to do this).
109
PRINCIPAL
RISKS
Each
Fund’s principal risks are summarized in the Fund’s Summary section. The
following provides additional detail about certain of those risks and additional
principal risks of each Fund.
U.S.
and Global/International Equity Funds
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Equity Funds General |
|
|
Market |
|
|
Style |
|
|
Smaller Company |
|
|
Liquidity |
|
|
Focus |
|
|
Inflation |
|
|
Valuation |
|
|
Share Ownership Concentration |
|
|
Non- Diversification |
|
Growth
Fund |
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
|
| |
|
✓ |
|
|
|
✓ |
|
|
|
|
| |
|
✓ |
|
|
|
| |
Large
Cap Growth Fund |
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
|
| |
|
|
| |
|
✓ |
|
|
|
✓ |
|
|
|
|
| |
|
✓ |
|
|
|
✓ |
|
Mid
Cap Value Fund |
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
|
| |
|
✓ |
|
|
|
✓ |
|
|
|
|
| |
|
✓ |
|
|
|
| |
Small-Mid
Cap Core Fund |
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
|
| |
|
✓ |
|
|
|
✓ |
|
|
|
|
| |
|
✓ |
|
|
|
| |
Small-Mid
Cap Growth Fund |
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
|
| |
|
✓ |
|
|
|
✓ |
|
|
|
|
| |
|
✓ |
|
|
|
| |
Small-Mid
Cap Value Fund |
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
|
| |
|
✓ |
|
|
|
✓ |
|
|
|
|
| |
|
✓ |
|
|
|
| |
Small
Cap Growth Fund |
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
|
| |
|
✓ |
|
|
|
✓ |
|
|
|
|
| |
|
✓ |
|
|
|
| |
Small
Cap Value Fund |
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
|
| |
|
✓ |
|
|
|
✓ |
|
|
|
|
| |
|
✓ |
|
|
|
| |
Global
Leaders Fund |
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
|
| |
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
| |
International
Leaders Fund |
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
|
| |
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
| |
International
Growth Fund |
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
|
| |
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
| |
Institutional
International Growth Fund |
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
|
| |
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
| |
International
Small Cap Growth Fund |
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
| |
Emerging
Markets Leaders Fund |
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
| |
Emerging
Markets Growth Fund |
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
| |
Emerging
Markets ex China Growth Fund |
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
| |
Emerging
Markets Small Cap Growth Fund |
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
| |
China
Growth Fund |
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Foreign Investment |
|
|
Currency |
|
|
Emerging Markets |
|
|
Geographic |
|
|
Geopolitical |
|
|
Derivatives |
|
|
Operating Expenses |
|
|
Operational and Technology |
|
|
Portfolio Turnover Rate |
|
|
REIT |
|
Growth
Fund |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
✓ |
|
|
|
|
| |
|
|
| |
|
✓ |
|
|
|
|
| |
|
| |
Large
Cap Growth Fund |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
✓ |
|
|
|
|
| |
|
|
| |
|
✓ |
|
|
|
|
| |
|
| |
Mid
Cap Value Fund |
|
|
✓ |
|
|
|
|
| |
|
|
| |
|
|
| |
|
✓ |
|
|
|
|
| |
|
|
| |
|
✓ |
|
|
|
|
| |
|
✓ |
|
Small-Mid
Cap Core Fund |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
✓ |
|
|
|
|
| |
|
|
| |
|
✓ |
|
|
|
|
| |
|
| |
Small-Mid
Cap Growth Fund |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
✓ |
|
|
|
|
| |
|
|
| |
|
✓ |
|
|
|
|
| |
|
| |
Small-Mid
Cap Value Fund |
|
|
✓ |
|
|
|
|
| |
|
|
| |
|
|
| |
|
✓ |
|
|
|
|
| |
|
|
| |
|
✓ |
|
|
|
|
| |
|
✓ |
|
Small
Cap Growth Fund |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
✓ |
|
|
|
|
| |
|
|
| |
|
✓ |
|
|
|
|
| |
|
| |
Small
Cap Value Fund |
|
|
✓ |
|
|
|
|
| |
|
|
| |
|
|
| |
|
✓ |
|
|
|
|
| |
|
|
| |
|
✓ |
|
|
|
|
| |
|
✓ |
|
Global
Leaders Fund |
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
|
| |
|
| |
International
Leaders Fund |
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
|
| |
|
| |
110
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Foreign Investment |
|
|
Currency |
|
|
Emerging Markets |
|
|
Geographic |
|
|
Geopolitical |
|
|
Derivatives |
|
|
Operating Expenses |
|
|
Operational and Technology |
|
|
Portfolio Turnover Rate |
|
|
REIT |
|
International
Growth Fund |
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
|
| |
|
| |
Institutional
International Growth Fund |
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
|
| |
|
| |
International
Small Cap Growth Fund |
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
|
| |
|
| |
Emerging
Markets Leaders Fund |
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
|
| |
|
| |
Emerging
Markets Growth Fund |
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
|
| |
|
| |
Emerging
Markets ex China Growth Fund |
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
|
| |
|
| |
Emerging
Markets Small Cap Growth Fund |
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
| |
China
Growth Fund |
|
|
✓ |
|
|
|
✓ |
|
|
|
✓ |
|
|
|
|
| |
|
✓ |
|
|
|
✓ |
|
|
|
|
| |
|
✓ |
|
|
|
|
| |
|
| |
Emerging
Markets Debt Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Market |
|
Liquidity |
|
Share Ownership Concentration |
|
Foreign Investment |
|
Emerging Markets |
|
Geographic |
|
Geopolitical |
|
Non- Diversification |
|
Credit |
|
Interest Rate |
|
Derivatives |
✓ |
|
✓ |
|
✓ |
|
✓ |
|
✓ |
|
✓ |
|
✓ |
|
✓ |
|
✓ |
|
✓ |
|
✓ |
Income |
|
Credit Default Swap |
|
Operational and Technology |
|
LIBOR Transition |
|
Portfolio Turnover Rate |
|
Sovereign and
Quasi- Sovereign Default |
|
Aggressive Investment Technique |
|
Counterparty and Contractual Default |
|
Currency |
|
Distressed Debt |
|
Floating and Variable Rate Securities |
✓ |
|
✓ |
|
✓ |
|
✓ |
|
✓ |
|
✓ |
|
✓ |
|
✓ |
|
✓ |
|
✓ |
|
✓ |
High Yield Securities |
|
Leverage |
|
Inflation |
|
Private Placement |
|
Government and Regulatory |
|
|
|
|
|
|
|
|
|
|
|
|
✓ |
|
✓ |
|
✓ |
|
✓ |
|
✓ |
|
| |
| |
| |
| |
| |
|
Equity Funds General Risk. Because each equity
Fund invests substantially all of its assets in equity securities, the primary
risk is that the value of the equity securities it holds might decrease in
response to the activities of an individual company or in response to general
market, business and economic conditions. If this occurs, a Fund’s share price
may also decrease. In addition, there is the risk that individual securities may
not perform as expected or a strategy used by the Adviser may fail to produce
its intended result.
Market Risk. The value of the Fund’s
investments may go up or down, sometimes rapidly or unpredictably. The value of
an investment may decline due to factors affecting securities markets generally
or particular industries represented in the securities markets. The value of an
investment may decline due to general market conditions that are not
specifically related to a particular company, such as real or perceived adverse
economic conditions, recessions, inflation, rapid interest rate changes, changes
in the general outlook for corporate earnings, changes in interest or currency
rates or adverse investor sentiment generally. Furthermore, local, regional and
global events such as war, military conflict, acts of terrorism, social unrest,
natural disasters, supply chain disruptions, sanctions, the spread of infectious
illness or other public health threats could also adversely impact issuers,
markets and economies, including in ways that cannot necessarily be foreseen.
The Fund could be negatively impacted if the value of a portfolio holding were
harmed by such political (including geopolitical) or economic conditions or
events. The value of an investment may also decline due to factors that affect a
particular industry or industries, such as labor shortages or increased
production costs and competitive conditions within an industry. During a general
downturn in the securities markets, multiple asset classes may decline in value
simultaneously.
111
Style Risk. Different investment styles (e.g.,
growth vs. value, quality bias, market capitalization focus) tend to shift in
and out of favor depending on market conditions and investor sentiment, and at
times when the investment style used by the Adviser for a Fund is out of favor,
the Fund may underperform other equity funds that use different investment
styles.
Smaller Company Risk. Stocks of smaller
companies involve greater risk than those of larger, more established companies.
This is because smaller companies may be in earlier stages of development, may
be dependent on a small number of products or services, may lack substantial
capital reserves and/or do not have proven track records. Smaller companies may
be more adversely affected by poor economic or market conditions, and may be
traded in low volumes, which may increase volatility and liquidity risks. From
time to time, each of the Funds that invest in small cap stocks may invest in
the equity securities of very small cap companies, often referred to as
“micro-cap” companies. For purposes of the Funds, “micro-cap” companies are
those with market capitalizations of $500 million or less at the time of a
Fund’s investment (except for the U.S. equity growth Funds, for which
“micro-cap” companies are those with market capitalizations of $1 billion
or less at the time of a Fund’s investment). The considerations noted above are
generally intensified for these investments. Any convertible debentures issued
by small cap companies are likely to be lower-rated or non-rated securities,
which generally involve more credit risk than debentures in the higher rating
categories and generally include some speculative characteristics, including
uncertainties or exposure to adverse business, financial or economic conditions
that could lead to inadequate capacity to meet timely interest and principal
payments.
Liquidity Risk. Investments that trade less
frequently can be more difficult or more costly to buy, or to sell, than more
liquid or active investments. It may not be possible to sell or otherwise
dispose of illiquid securities both at the price and within a time period deemed
desirable by a Fund. Securities subject to liquidity risk in which a Fund may
invest include emerging market securities, stocks of smaller companies, private
placements, Rule 144A securities, below-investment-grade securities and other
securities without an established market. Liquidity risk may be magnified for
fixed income securities in a rising interest rate environment if there is
increased supply in the market due to selling activity. If dealer capacity in
fixed income markets is insufficient for market conditions, it may further
inhibit liquidity and increase volatility in the fixed income markets.
Dislocations
in certain parts of markets are resulting in reduced liquidity for certain
investments. It is uncertain when financial markets will improve and economic
conditions will stabilize. Liquidity of financial markets may also be affected
by government intervention and political, social, health, economic or market
developments. During period of market stress, a Fund’s assets could potentially
experience significant levels of illiquidity.
Focus Risk. To the extent that a Fund focuses
its investments in particular industries, asset classes or sectors of the
economy, any market price movements, regulatory or technological changes, or
economic conditions affecting companies in those industries, asset classes or
sectors may have a significant impact on the Fund’s performance. For example,
consumer goods companies could be hurt by a rise in unemployment or technology
companies could be hurt by such factors as market saturation, price competition
and rapid obsolescence.
For
the International Leaders Fund and the Emerging Markets Leaders Fund, because
each Fund may focus its investments in a limited number of securities, its
performance may be more volatile than a fund that invests in a greater number of
securities. If securities in which these Funds invest perform poorly, the Funds
could incur greater losses than they would have had they invested in a greater
number of securities.
Valuation Risk. In certain circumstances,
portfolio securities may be valued using techniques other than market
quotations, including using fair value pricing. Portfolio securities that are
valued using such techniques may be subject to greater fluctuation in their
value from one day to the next than would be the case if market quotations were
used. In addition, there is no assurance that a Fund could sell a portfolio
security for the value established for it at any time, and it is possible that a
Fund could incur a loss because a portfolio security is sold for a lower value
than its established value.
112
Share Ownership Concentration Risk. To the
extent that a significant portion of a Fund’s shares is held by a limited number
of shareholders or their affiliates, there is a risk that the share trading
activities of these shareholders could disrupt the Fund’s investment strategies,
which could have adverse consequences for the Fund and other shareholders (e.g.,
by requiring the Fund to sell investments at inopportune times or causing the
Fund to maintain larger-than-expected cash positions pending acquisition of
investments). In addition, separate accounts managed by the Adviser may invest
in the Emerging Markets Leaders Fund, Emerging Markets Growth Fund, Emerging
Markets ex China Growth Fund, Emerging Markets Small Cap Growth Fund, China
Growth Fund, and Emerging Markets Debt Fund and, therefore, the Adviser at times
may have discretionary authority over a significant portion of the assets of a
Fund. In such instances, the Adviser’s decision to make changes to or rebalance
its clients’ allocations in the separate accounts may substantially impact the
Fund’s performance.
Non-Diversification Risk. The Large Cap Growth
Fund, China Growth Fund and Emerging Markets Debt Fund are each non-diversified,
meaning that they are permitted to invest a larger percentage of their
respective assets in fewer issuers than diversified mutual funds. Thus, each
Fund may be more susceptible to adverse developments affecting any single issuer
held in their respective portfolios, and may be more susceptible to greater
losses because of these developments.
Foreign Investment Risk. The risks of investing
in securities of foreign issuers may include less publicly available
information, less stringent investor protections and disclosure standards, less
governmental regulation and supervision of foreign stock exchanges, brokers and
issuers, share registration and custody, less stringent or a lack of uniform
accounting, auditing and financial reporting standards, practices and
requirements, the possibility of expropriation, seizure or nationalization,
confiscatory taxation, trade restrictions (including tariffs), limits on
repatriation, adverse changes in investment or exchange control regulations,
political instability, restrictions on the flow of international capital,
imposition of foreign withholding and other taxes, fluctuating currencies,
inflation, difficulty in obtaining and enforcing judgments against foreign
entities or other adverse political, social or diplomatic developments that
could affect a Fund’s investments. Securities of some foreign issuers are less
liquid and their prices more volatile than the securities of U.S. companies.
Certain Funds are expected to incur operating expenses that are higher than
those of mutual funds investing exclusively in U.S. securities due to the higher
custodial fees associated with foreign securities investments. In addition, the
time period for settlement of transactions in certain foreign markets generally
is longer than for U.S. markets.
Foreign
securities held by a Fund may be denominated in currencies other than the U.S.
dollar. Therefore, changes in foreign exchange rates will affect the value of
the securities held by a Fund either beneficially or adversely. Fluctuations in
foreign currency exchange rates will also affect the dollar value of dividends
and interest earned, gains and losses realized on the sale of securities and net
investment income and gains, if any, available for distribution to shareholders.
A
Fund’s investments in ADRs are also subject to foreign securities risk. ADRs are
certificates evidencing ownership of shares of a foreign issuer that are issued
by depositary banks and traded on U.S. exchanges. Although ADRs are alternatives
to directly purchasing the underlying foreign securities in their national
markets and currencies, they continue to be subject to many of the risks
associated with investing directly in foreign securities.
Currency Risk. The value of a Fund’s portfolio
may be affected by changes in exchange rates or control regulations. If a local
currency gains against the U.S. dollar, the value of the security increases in
U.S. dollar terms. If a local currency declines against the U.S. dollar, the
value of the security decreases in U.S. dollar terms.
Emerging Markets Risk. Foreign investment risk
is typically magnified in emerging markets, which are the less developed and
developing nations. Certain of these countries have in the past failed to
recognize private property rights and have at times nationalized and
expropriated the assets of private companies. Political, social and economic
structures in many emerging market countries may be less established than in
developed countries and may change rapidly. Such countries may also lack the
social, political and economic characteristics of more
113
developed
countries. Unanticipated political, social or economic developments may affect
the values of a Fund’s investments in emerging market countries and the
availability to a Fund of additional investments in these countries. The legal
remedies for investors in emerging markets may be more limited than the remedies
available in the U.S., and the ability of U.S. authorities (e.g., the SEC and
the U.S. Department of Justice) to bring actions against bad actors may be
limited.
The
currencies of certain emerging market countries have from time to time
experienced a steady devaluation relative to the U.S. dollar, and continued
devaluations may adversely affect the value of a Fund’s assets denominated in
such currencies. Many emerging market countries have experienced substantial
rates of inflation for many years, and continued inflation may adversely affect
the economies and securities markets of such countries.
The
small size, limited trading volume and relative inexperience of the financial
markets in these countries may make a Fund’s investments in such countries
illiquid and more volatile than investments in more developed countries. There
may be little financial or accounting information available with respect to
issuers located in these countries, and this information may not reflect the
issuer’s financial position in the same way as it would be reflected if the
financial and accounting information had been prepared in accordance with U.S.
Generally Accepted Accounting Principles. As a result, it may be difficult to
assess the value or prospects of an investment in such issuers.
The
system of share registration and custody in some emerging market countries may
create certain risks of loss (including in some cases the risk of total loss)
and a Fund may be required to establish special custodial or other arrangements
before making investments in these countries. There is an increased risk of
uninsured loss due to lost, stolen or counterfeit stock certificates or
unauthorized trading, or other fraudulent activity.
Prior
governmental approval of non-U.S. investments may be required and foreign
investment in U.S. companies may be subject to limitation in some emerging
market countries. Certain emerging market countries require governmental
approval prior to investments by foreign persons or limit investment by foreign
persons to only a specified percentage of an issuer’s outstanding securities or
a specific class of securities which may have less advantageous terms (including
price) than securities of the company available for purchase by nationals.
Repatriation of investment income, capital and proceeds of sales by foreign
investors may require governmental registration and/or approval in some
developing countries. A Fund could be adversely affected by delays in or a
refusal to grant any required governmental registration or approval for such
repatriation.
The
economies of certain developing countries may be dependent upon international
trade and, accordingly, have been and may continue to be adversely affected by
trade barriers, exchange controls, managed adjustments in relative currency
values and other protectionist measures imposed or negotiated by the countries
with which they trade. These economies also have been and may continue to be
adversely affected by economic conditions in the countries with which they
trade.
With
respect to the Emerging Markets Debt Fund, the risks of investing in emerging
markets are further magnified in frontier markets, which may have greater
political or economic instability and may also be subject to trade barriers,
adjustments in currency values and developing or changing securities laws and
other regulations. Investments in frontier market countries generally are less
liquid and subject to greater price volatility than investments in developed
markets or emerging markets generally.
Risks of Investing in Russia. The United
States and EU have instituted various sanctions against Russia and certain
Russian individuals, banking entities and corporations in response to Russia’s
large-scale military invasion of Ukraine in February 2022. These sanctions and
other intergovernmental actions that may be undertaken against Russia may result
in the devaluation of Russian currency, a downgrade in credit ratings of Russian
securities or those of companies located in or economically tied to Russia, and
increased market volatility and disruption in Russia and throughout the world.
These sanctions will result in the
114
immediate
freeze of Russian securities, impairing the ability of a Fund to buy, sell,
receive or deliver those securities. In addition, retaliatory action by the
Russian government could involve the seizure of assets and any such actions are
likely to impair the value and liquidity of such assets. Any or all of these
potential results have harmed Russia’s economy.
Risks of Investing in China. By investing in
securities or instruments that are economically tied to the PRC, a Fund is
subject to certain risks in addition to those generally applicable to investment
in foreign and emerging markets. The PRC has had a relatively stable political
environment in recent periods, but such stability is not guaranteed to continue.
A Fund’s exposure to the PRC is also subject to certain other risks including,
among others, risks associated with (i) inefficiencies associated with
inconsistent growth, (ii) the limited operating history and relatively
small size of many companies in China, (iii) the potential for, at times
significant, government intervention in markets or the economy at large,
(iv) the uncertainty inherent in, and potential changes that could be made
in respect of, the rules and regulations of the market access programs that
govern many investments in the PRC, and (v) uncertainty in whether the
PRC’s government is committed to continuing economic reforms. In addition to
these risks, the relationship between the PRC and Hong Kong or Macau may present
a risk to a Fund’s investment in the PRC, Hong Kong, or Macau. Controls on
foreign investment in the PRC and limitations on repatriation of invested
capital present additional risks for a Fund’s investment in the PRC. Although
there has been a recent relaxation of requirements governing the repatriation of
funds under certain market access programs, it is not clear whether and how
these relaxed requirements will be implemented in practice. As a result, due to
regulatory requirements in the PRC, a Fund may be limited in its ability to
invest in securities or instruments tied to the PRC and/or may be required to
liquidate its holdings in securities or instruments tied to the PRC, including
at an inopportune time—which could result in losses for a Fund. Securities
exchanges in the PRC also typically have the right to suspend or limit trading
in any security traded on the relevant exchange. The PRC government or relevant
PRC regulators may also implement policies that may adversely affect the PRC
financial markets. Such suspensions, limitations or policies may have a negative
impact on the performance of a Fund’s investments.
Changes
to political and economic relationships, including recent trade and policy
disputes and strained international relations, between China and other countries
and changes to China’s socioeconomic systems may adversely affect a Fund’s
investments in China. For example, continued hostility and the potential for
future political or economic disturbances between China and the United States
may have an adverse impact on the values of investments in China, the United
States and/or other countries.
U.S.
governmental orders and sanctions with respect to Chinese companies may limit
the securities in which a Fund may invest or force a Fund to sell holdings at a
time the Adviser finds unattractive.
Variable Interest Entities. A Fund’s
investments in emerging markets may also include investments in U.S.- or Hong
Kong-listed issuers that have entered into contractual relationships with a
China-based business and/or individuals/entities affiliated with the business
structured as a variable interest entity (“VIE”). Instead of directly owning the
equity interests in a Chinese company, the listed company has contractual
arrangements with the Chinese company, which are expected to provide the listed
company with exposure to the China-based company. These arrangements are often
used because of Chinese governmental restrictions on non-Chinese ownership of
companies in certain industries in China. By entering into contracts with the
listed company that sells shares to U.S. investors, the China-based companies
and/or related individuals/entities indirectly raise capital from U.S. investors
without distributing ownership of the China-based companies to U.S. investors.
Even
though the listed company does not own any equity in the China-based company,
the listed company expects to exercise power over and obtain economic
rights from the China-based company based on the contractual arrangements. All
or most of the value of an investment in these companies depends on the
enforceability of the contracts between the listed company and the
China-based VIE. If the parties to the
115
contractual
arrangements do not meet their obligations as intended or there are effects on
the enforceability of these arrangements from changes in Chinese law or
practice, the listed company may lose control over the China-based company, and
investments in the listed company’s securities may suffer significant economic
losses.
The
contractual arrangements permit the listed issuer to include the financial
results of the China-based VIE as a consolidated subsidiary. The
listed company often is organized in a jurisdiction other than the United States
or China (e.g., the Cayman Islands), which likely will not have the same
disclosure, reporting, and governance requirements as the United States.
While
VIEs are a longstanding industry practice, well known to Chinese officials and
regulators, VIEs are not formally recognized under Chinese law. The Chinese
government could determine at any time and without notice that the underlying
contractual arrangements on which control of the VIE is based violate Chinese
law, which may result in a significant loss in the value of an investment in a
listed company that uses a VIE structure. Other risks associated with such
investments include the risk that a breach of the contractual agreements between
the listed company and the China-based VIE (or its officers,
directors, or Chinese equity owners) will likely be subject to Chinese law and
jurisdiction, which raises questions about whether and how the listed company or
its investors could seek recourse in the event of an adverse ruling as to its
contractual rights; and that investments in the listed company may be affected
by conflicts of interest and duties between the legal owners of the
China-based VIE and the stockholders of the listed company, which may
adversely impact the value of investments of the listed company.
Risks of Investing through China Stock
Connect. China A-shares (“A-shares”) are equity securities of companies
based in mainland China that trade on Chinese stock exchanges such as the
Shanghai Stock Exchange (“SSE”) and the Shenzhen Stock Exchange (“SZSE”).
Foreign investment in A-shares on the SSE and SZSE has historically not been
permitted, other than through a license granted under regulations in the
People’s Republic of China known as the Qualified Foreign Institutional Investor
and Renminbi Qualified Foreign Institutional Investor systems. Each license
permits investment in A-shares only up to a specified quota.
Investment
in eligible A-shares listed and traded on the SSE or the SZSE is also permitted
through the respective Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect
programs (together, “Stock Connect”). Stock Connect is a securities trading and
clearing links program developed by Hong Kong Exchanges and Clearing Limited
(“HKEX”), SSE, SZSE, and China Securities Depositary and Clearing Corporation
Limited (“ChinaClear”) with an aim to achieve mutual stock market access between
the People’s Republic of China and Hong Kong.
Investment
in eligible A-shares through Stock Connect is subject to trading, clearance and
settlement procedures that could pose risks to a Fund. Stock Connect imposes
daily quota limitations, and investors may not purchase and sell the same
security on the same trading day, which may restrict a Fund’s ability to enter
into or exit trades on a timely basis. Stock Connect can operate only when the
Shanghai or Shenzhen markets, in addition to the Hong Kong market, are open for
trading and when banking services are available in both markets on the
corresponding settlement days. As such, if one or both markets are closed on a
U.S. trading day, a Fund may not be able to dispose of its A-shares in a timely
manner, which could adversely affect Fund performance. HKEX, SSE, and SZSE each
reserve the right to suspend trading and the A-shares market has historically
had a higher propensity for trading suspensions than many other global equity
markets. Because of the way in which A-shares are held in Stock Connect, a Fund
may not be able to exercise the rights of a shareholder and may be limited in
their ability to pursue claims against the issuer of a security.
The
regulations of Stock Connect are relatively new and untested and are subject to
changes, which could adversely impact a Fund’s rights with respect to its
A-shares. As Stock Connect is relatively new, there are
116
no
assurances that the operational systems of the relevant market participants
comprising the Stock Connect program will function properly, independently or in
coordination with other participants. U.S. sanctions or other investment
restrictions could preclude a Fund from investing in certain Chinese issuers or
cause a Fund to sell investments at a disadvantageous time.
Quota Limitations. The Stock Connect is
subject to quota limitations; in particular, once the remaining balance of the
relevant quota drops to zero or the daily quota is exceeded, buy orders will be
rejected (although investors will be permitted to sell their cross-boundary
securities regardless of the quota balance). Therefore, quota limitations may
restrict a Fund’s ability to invest through the Stock Connect on a timely basis,
and the relevant Fund may not be able to effectively pursue its investment
strategy.
Legal/Beneficial Ownership. The SSE and SZSE
A-shares in respect of the Funds are held by the depositary/sub-custodian in
accounts in the Hong Kong Central Clearing and Settlement System maintained by
the HKSCC as central securities depositary in Hong Kong. HKSCC in turn holds the
SSE and SZSE A-shares, as the nominee holder, through an omnibus securities
account in its name registered with ChinaClear. The precise nature and rights of
the Funds as the beneficial owners of the SSE and SZSE A-shares through HKSCC as
nominee is not well defined under PRC law. Because HKSCC is only a nominee
holder and not the beneficial owner of SSE or SZSE A-shares, in the unlikely
event that HKSCC becomes subject to winding up proceedings in Hong Kong,
investors should note that SSE and SZSE A-shares will not be regarded as part of
the general assets of HKSCC available for distribution to creditors even under
mainland China law. However, HKSCC will not be obliged to take any legal action
or enter into court proceedings to enforce any rights on behalf of investors in
SSE or SZSE A-shares in mainland China. Foreign investors, like the Funds
investing through the Stock Connect holding the SSE or SZSE A-shares through
HKSCC, are the beneficial owners of the assets and are therefore eligible to
exercise their rights through the nominee only.
Clearing and Settlement Risk. HKSCC and
ChinaClear have established the clearing links and each has become a participant
of the other to facilitate clearing and settlement of cross-boundary trades. For
cross-boundary trades initiated in a market, the clearing house of that market
will on one hand clear and settle with its own clearing participants, and on the
other hand undertake to fulfill the clearing and settlement obligations of its
clearing participants with the counterparty clearing house. As the national
central counterparty of the PRC’s securities market, ChinaClear operates a
comprehensive network of clearing, settlement and stock holding infrastructure.
ChinaClear has established a risk management framework and measures that are
approved and supervised by the China Securities Regulatory Commission. The
chances of a ChinaClear default are considered to be remote. In the remote event
of a ChinaClear default, HKSCC’s liabilities in SSE and SZSE A-shares under its
market contracts with clearing participants will be limited to assisting
clearing participants in pursuing their claims against ChinaClear. HKSCC should
in good faith, seek recovery of the outstanding stocks and monies from
ChinaClear through available legal channels or through ChinaClear’s liquidation.
In that event, the relevant Fund may suffer delay in the recovery process or may
not fully recover its losses from ChinaClear.
Suspension Risk. Each of the SEHK, SSE and
SZSE reserves the right to suspend trading, if necessary, for ensuring an
orderly and fair market and that risks are managed prudently. Consent from the
relevant regulator would be sought before a suspension is triggered. Where a
suspension is effected, the Fund’s ability to access the PRC market will be
adversely affected.
Differences in Trading Day. The Stock Connect
only operates on days when both the PRC and Hong Kong markets are open for
trading and when banks in both markets are open on the corresponding settlement
days. It is therefore possible that there are occasions when it is a normal
trading day for the PRC market, but the Funds cannot carry out any trading via
the Stock Connect. The Funds may be subject to a risk of price fluctuations
during the time when the Stock Connect is not trading as a result.
117
Restrictions on Selling Imposed by Front-end
Monitoring. PRC regulations require that before an investor sells any
A-share, there should be sufficient shares in the account; otherwise the SSE or
SZSE will reject the sell order concerned. SEHK will carry out pre-trade
checking on sell orders of its participants (i.e., the stockbrokers) to ensure there is no
over-selling. If a Fund intends to sell certain A-shares it holds, it must
transfer those shares to the respective accounts of its broker(s) before the
market opens on the day of selling (“trading day”). If it fails to meet this
deadline, it will not be able to sell those shares on the trading day. Because
of this requirement, a Fund may not be able to dispose of its holdings in a
timely manner.
Operational Risk. The Stock Connect is
premised on the functioning of the operational systems of the relevant market
participants. Market participants are permitted to participate in this program
subject to meeting certain information technology capability, risk management
and other requirements as may be specified by the relevant exchange and/or
clearing house. The securities regimes and legal systems of the two markets
differ significantly and market participants may need to address issues arising
from the differences on an on-going basis. There is no assurance that the
systems of the SEHK and market participants will function properly or will
continue to be adapted to changes and developments in both markets. In the event
that the relevant systems fail to function properly, trading in both markets
through Stock Connect could be disrupted. A Fund’s ability to access the market
(and hence to pursue its investment strategy) may be adversely affected.
Regulatory Risk. The Stock Connect is a novel
concept. The current regulations are relatively new and untested and there is no
certainty as to how they will be applied. In addition, the current regulations
are subject to change and there can be no assurance that the Stock Connect will
not be abolished. New regulations may be issued from time to time by the
regulators/stock exchanges in the PRC and Hong Kong in connection with
operations, legal enforcement and cross-border trades under the Stock Connect.
Funds may be adversely affected as a result of such changes.
Recalling of Eligible Stocks. When a stock is
recalled from the scope of eligible stocks for trading via the Stock Connect,
the stock can only be sold and is restricted from being bought. This may affect
the investment portfolio or strategies of the relevant Funds, for example, if
the Adviser wishes to purchase a stock that is recalled from the scope of
eligible stocks.
No Protection by Investor Compensation
Fund. Investment in SSE and SZSE A-shares via the Stock Connect is
conducted through brokers and is subject to the risks of default by such
brokers’ in their obligations. Investments of Funds are not covered by the Hong
Kong’s Investor Compensation Fund, which has been established to pay
compensation to investors of any nationality who suffer pecuniary losses as a
result of default of a licensed intermediary or authorized financial institution
in relation to exchange-traded products in Hong Kong. Since default matters in
respect of SSE and SZSE A-shares via Stock Connect do not involve products
listed or traded in SEHK or Hong Kong Futures Exchange Limited, they will not be
covered by the Investor Compensation Fund. Therefore, the Funds are exposed to
the risks of default of the broker(s) it engages in its trading through the
Stock Connect.
Geographic Risk. Although the Equity Funds
investing primarily in foreign securities currently intend to maintain
geographic diversification, the Equity Funds have the flexibility to invest no
more than 50% (65% for Global Leaders Fund) of their equity holdings in
securities of issuers in any one country. To the extent that an Equity Fund
invests a significant portion of its assets in any one country or geographic
region, the Fund will be subject to greater risk of loss or volatility than if
the Fund always maintained wide geographic diversity among the countries or
geographic regions in which it invests. Investing in any one country or
geographic region makes a Fund more vulnerable to the risks of adverse
securities markets, exchange rates and social, political, regulatory and
economic events in that one country or geographic region.
Geopolitical Risk. Geopolitical and other
events may disrupt securities markets and adversely affect global economies and
markets and thereby decrease the value of a Fund’s investments. War, terrorism,
economic
118
uncertainty,
and related geopolitical events have led, and in the future may lead, to
increased short-term market volatility and may have adverse long-term effects on
U.S. and world economies and markets generally. Likewise, natural and
environmental disasters and systemic market dislocations could be highly
disruptive to economies and markets, adversely affecting individual companies
and industries, securities markets, interest rates, credit ratings, inflation,
investor sentiment, and other factors affecting the value of a Fund’s
investments.
During
global market disruptions, a Fund’s exposure to the risks described elsewhere in
this Prospectus will likely increase. Market disruptions can also prevent a Fund
from implementing its investment strategies for a period of time and achieving
its investment objective. For example, a market disruption may adversely affect
the orderly functioning of the securities markets and may cause a Fund’s
derivatives counterparties to discontinue offering derivatives on some
underlying securities, reference rates, or indices, or to offer them on a more
limited basis.
Government and Regulatory Risk. Governmental
and regulatory authorities in the United States and other countries have taken,
and may in the future take, actions intervening in the markets in which a Fund
invests, and in the economy more generally. Governmental and regulatory
authorities may also act to increase the scope or burden of regulations
applicable to a Fund or to the companies in which a Fund invests. The effects of
these actions on the markets generally, and a Fund’s investment program in
particular, can be uncertain and could restrict the ability of a Fund to fully
implement its investment strategies, either generally, or with respect to
certain securities, industries or countries. For example, sanctions or other
investment restrictions imposed by governments could preclude a Fund from
investing in certain issuers or cause a Fund to sell investments at a
disadvantageous time; new regulations on certain types of companies, including
new anti-trust regulations, could adversely affect the value of certain
investments held by a Fund; and new regulations promulgated by securities
regulators could increase the costs of investing in a Fund by increasing
expenses borne by the Fund in order to comply with such regulations.
By
contrast, markets in some non-U.S. countries historically have been subject to
little regulation or oversight by governmental or regulatory authorities, which
could heighten the risk of loss due to fraud or market failures in those
countries. For example, a foreign government’s decision not to subject companies
to uniform accounting, auditing and financial reporting standards practices, and
requirements comparable to those applicable to U.S.‑based companies could
increase the risk that accounting fraud goes undetected. The lack of
government-enforced oversight may result in investors having limited rights and
few practical remedies to pursue shareholder claims.
Furthermore,
governments, agencies or other regulatory bodies may adopt or change laws or
regulations that could adversely affect a Fund or the market value of an
instrument held by a Fund. The Adviser cannot predict the effects of any new
laws or regulation that may be implemented, and there can be no assurance that
any new laws or regulations will not adversely affect a Fund’s ability to
achieve its investment objective. For example, financial entities, such as
investment companies and investment advisers, are generally subject to extensive
government regulation that may change frequently and have significant adverse
consequences on a Fund. Similarly, investments in certain industries, sectors or
countries may also be subject to extensive regulation. Economic downturns and
political changes can trigger economic, legal, budgetary, tax, and other
regulatory changes. Regulatory changes may impact the way a Fund is regulated or
the way a Fund’s investments are regulated, affect the expenses incurred
directly by a Fund and the value of its investments, and limit and/or preclude a
Fund’s ability to pursue its investment strategy or achieve its investment
objective.
Derivatives Risk. Investing in derivatives
involves investment techniques and risks different from those associated with
ordinary mutual fund securities transactions and may involve increased
transaction costs. The Fund’s investment in derivatives may rise or fall more
rapidly in value than other investments and may reduce the Fund’s returns.
Changes in the value of the derivative may not correlate perfectly, or at all,
with the underlying asset, reference rate or index, and the Fund could lose more
than the principal amount invested. Derivatives also may be subject to certain
other risks such as leveraging risk, liquidity risk, interest rate risk,
119
market
risk, credit risk, counterparty risk, operational risk, legal risk, management
risk and the risk of mispricing or improper valuation. Derivatives also may not
behave as anticipated by the Fund, especially in abnormal market conditions. The
use of derivatives may increase the volatility of the Fund’s net asset value.
Derivatives may be leveraged such that a small investment in derivative
instruments can have a significant impact on the Fund’s exposure to stock market
values, interest rates, currency exchange rates or other investments. As a
result, a relatively small price movement in a derivatives contract may cause an
immediate and substantial loss or gain. It may be difficult or impossible for
the Fund to purchase or sell certain derivatives in sufficient amounts to
achieve the desired level of exposure, which may result in a loss or may be
costly to the Fund. Some derivatives are more sensitive to market price
fluctuations and to interest rate changes than other investments. The Fund also
could suffer losses related to its derivatives positions as a result of
unanticipated market movements, which losses are potentially unlimited. The Fund
also may be exposed to losses if the counterparty in the transaction does not
fulfill its contractual obligation. In addition, derivatives traded
over-the-counter (“OTC derivatives”) do not benefit from the protections
provided by exchanges in the event that a counterparty is unable to fulfill its
contractual obligation. Such OTC derivatives therefore involve greater
counterparty and credit risk and may be more difficult to value than
exchange-traded derivatives. When a derivative is used as a hedge against a
position that the Fund holds, any loss generated by the derivative should
generally be offset by gains on the hedged instrument, and vice versa. While
hedging can reduce or eliminate losses, it also can reduce or eliminate gains.
Hedges are sometimes subject to imperfect matching between the derivative and
the hedged investment, and there can be no assurance that the Fund’s hedging
transactions will be effective. Also, suitable derivative transactions may not
be available in all circumstances. Derivatives are subject to fees and other
costs which are not reflected in the Annual Fund Operating Expenses table.
Derivatives
are also subject to liquidity risk. Liquidity risk is the risk that a derivative
instrument cannot be sold, closed out or replaced quickly at or very close to
its fundamental value. Generally, exchange-traded derivatives are very liquid
because the exchange clearinghouse is the counterparty of every contract. OTC
derivatives are less liquid than exchange-traded derivatives since they often
can be closed out only with the other party to the transaction. The Fund’s
ability to sell or close out a position in an instrument prior to expiration or
maturity depends on the existence of a liquid secondary market or, in the
absence of such a market, the ability and willingness of the counterparty to
enter into a transaction closing out the position. Therefore, there is no
assurance that any derivatives position can be sold or closed out at a time and
price that is favorable to the Fund. The possible lack of a liquid secondary
market for certain derivatives and the resulting inability of the Fund to sell
or otherwise close out a derivatives position could expose the Fund to losses
and could make such derivatives more difficult for the Fund to value accurately.
In addition, if the Fund has insufficient cash to meet daily variation margin or
payment requirements, it may have to sell securities from its portfolio at a
time when it may be disadvantageous to do so.
Operating Expenses Risk. The Funds investing
primarily in foreign securities are expected to incur operating expenses that
are higher than those of mutual funds investing exclusively in U.S. securities
because expenses such as custodial fees related to foreign investments are
usually higher than those associated with investments in U.S. securities. The
Funds sell and redeem shares in U.S. dollars and there are costs associated with
converting holdings in foreign currencies to U.S. dollars. In addition,
dividends and interest from foreign securities may be subject to foreign
withholding taxes. (For more information, see “Your Account—Federal Income
Taxes.”)
Leverage Risk. The Emerging Market Debt Fund’s
investments in derivatives or exposure to derivatives through other investment
vehicles expose the Fund to leverage inherent in such instruments. Such
leveraged investments can amplify the effects of market volatility on the Fund’s
net asset value (i.e., relatively small
market movements may result in large changes in the Fund’s net asset value) and
make the Fund’s returns more volatile. At times, the Fund’s leveraged
investments may cause the Fund’s investment exposure to exceed its net assets
and could cause the Fund to experience substantial losses, including the risk of
total loss, if the market moves against the Fund. The use of leveraged
investments may also cause the Fund to liquidate portfolio positions when it
would not be advantageous to do so in order to satisfy its obligations. The use
of leveraged investments may also cause the Fund to have higher expenses than
those of mutual funds that do not use such techniques.
120
Interest Rate Risk. Normally, the values of
fixed income securities vary inversely with changes in prevailing interest
rates. The value of a Fund’s fixed income securities tends to decrease when
interest rates rise and tends to increase when interest rates fall. Securities
with longer maturities or durations held by a Fund are generally more sensitive
to interest rate changes. As such, securities with longer maturities or
durations are usually more volatile than those with shorter maturities or
durations. The negative impact on fixed income securities from rising interest
rates could be significant and negatively impact the Fund’s net asset value. The
current rising interest rate environment may also result in periods of increased
redemptions from a Fund and increased supply in the market due to selling
activity to meet redemptions. If a Fund has to liquidate portfolio securities to
meet redemptions in such an environment, it may have to do so at disadvantageous
times and prices, which could negatively impact a Fund’s net asset value. A
Fund’s investment in variable rate securities will generally be less sensitive
to interest rate changes, but such securities may decline in value if their
interest rates do not rise as much, or as quickly, as interest rates in general.
The negative impact on fixed income securities from rising interest rates could
be swift and significant and negatively impact the Fund’s net asset value.
For
most of the last decade, the U.S. Federal Reserve (“Fed”) has maintained
interest rates in the U.S. at relatively steady levels. However, in 2022 and
2023, the Fed raised interest rates as part of its efforts to address inflation,
and the future of interest rates remain uncertain. Separately, certain countries
have experienced negative interest rates on certain fixed-income instruments.
Very low or negative interest rates may also magnify interest rate risk.
Changing interest rates may result in heightened market volatility and may
detract from Fund performance to the extent a Fund is exposed to such interest
rates and/or volatility.
Inflation Risk. The Funds’ investments are
subject to inflation risk, which is the risk that the real value of assets or
income from investments will be less in the future as inflation decreases the
purchasing power and value of money (i.e., as inflation increases, the real value
of the Fund’s assets can decline as can the purchasing power of the Fund’s
distributions). Inflation rates may change frequently and significantly as a
result of various factors, including unexpected shifts in the U.S. or global
economy and changes in monetary or economic policies (or expectations that these
policies may change). The market price of debt securities generally falls as
inflation increases because the purchasing power of the future income and repaid
principal is expected to be worth less when received by a Fund. The risk of
inflation is greater for debt instruments with longer maturities and especially
those that pay a fixed rather than variable interest rate. Generally, securities
issued in emerging markets are subject to a greater risk of inflationary or
deflationary forces, and more developed markets are better able to use monetary
policy to normalize markets. Inflation has reached unusually high levels in
recent periods and the Fed has increased interest rates significantly to seek to
combat inflation.
Credit Risk. The value of a Fund’s securities
is subject to the ability of the issuers of such securities to make interest
payments or payment at maturity. Obligations that are unrated are not
necessarily of lower quality than those that are rated, but may be less
marketable. Not all securities issued or guaranteed by agencies or
instrumentalities of the U.S. Government are backed by the full faith and credit
of the United States. Such securities involve different degrees of government
backing. Some obligations issued or guaranteed by U.S. Government agencies or
instrumentalities in which a Fund may invest are backed by the full faith and
credit of the United States, such as modified pass-through certificates issued
by the Government National Mortgage Association, while others are backed
exclusively by the agency or instrumentality with limited rights of the issuer
to borrow from the U.S. Treasury. Others are backed only by the credit of the
issuer itself. While the U.S. Government may provide financial support to such
agencies or instrumentalities, no assurance can be given that it will always do
so since it is not so obligated by law.
A
Fund’s investments in below-investment-grade securities (e.g., “high yield” or
“junk” bonds) may have additional credit risk. Securities rated below BBB by a
nationally recognized statistical rating organization have speculative
characteristics and can be more vulnerable to bad economic news than investment
grade securities, which could lead to a weakened capacity to make principal and
interest payments. In some cases, below-investment-grade securities may decline
in credit quality or go into default. For a description of ratings, see Appendix
B in the Statement of Additional Information.
121
Mortgage-Backed/Asset-Backed Securities
Risk. The value of a Fund’s mortgage-backed or asset-backed securities
may be affected by, among other things, changes in interest rates, factors
concerning the interests in and structure of the issuer or the originator of the
mortgages, the creditworthiness of the entities that provide any supporting
letters of credit, surety bonds or other credit enhancements or the market’s
assessment of the quality of underlying assets. During periods of rising
interest rates, property owners may prepay their mortgages more slowly than
expected, resulting in slower prepayments of mortgage-backed securities, which
increases the duration of a security and may reduce its value. When interest
rates decline, property owners may prepay their mortgages more quickly than
expected. This can reduce the returns of a Fund because the Fund may have to
reinvest that money at the lower prevailing interest rates. A Fund’s investments
in other asset-backed securities are subject to similar extension and prepayment
risks as those described above for mortgage-backed securities.
Income Risk. Income risk is the risk that the
income received by the Fund may decrease as a result of a decline in interest
rates. A Fund’s income is based on short-term interest rates, which may
fluctuate over short periods of time.
Credit Default Swap Risk. Credit default swaps
are subject to the credit risk of the underlying reference obligation and to
counterparty credit risk. If the counterparty fails to meet its obligations, a
Fund may lose money. Credit default swaps are also subject to the risk that the
Adviser will not properly assess the risk of the underlying reference
obligation. If a Fund is selling credit protection, there is a risk that a
credit event will occur and that a Fund will have to pay the counterparty. If a
Fund is buying credit protection, there is a risk that no credit event will
occur and a Fund will receive no benefit for the premium paid. Credit default
swaps may be difficult to value and may have the effect of leverage on a Fund.
Mortgage-Backed To-Be-Announced (TBA) Securities
Risk. To the extent a Fund purchases or sells mortgage-backed TBA
securities, a Fund is subject to the risk that the counterparty may fail to
consummate the transaction, which could cause a Fund to miss the opportunity to
obtain a price or yield considered to be advantageous. Mortgage-backed TBAs may
also have a leverage-like effect on a Fund and may cause a Fund to be more
volatile.
Operational and Technology Risk. Cyber-attacks,
disruptions, or failures that affect a Fund’s service providers or
counterparties, issuers of securities held by the Fund, or other market
participants may adversely affect the Fund and its shareholders, including by
causing losses for the Fund or impairing Fund operations.
Cyber-attacks
may include unauthorized attempts by third parties to improperly access, modify,
disrupt the operations of, or prevent access to the systems of a Fund’s service
providers or counterparties, issuers of securities held by the Fund or other
market participants or data within them. In addition, power or communications
outages, acts of god, information technology equipment malfunctions, operational
errors, and inaccuracies within software or data processing systems may also
disrupt business operations or impact critical data. Market events also may
trigger a volume of transactions that overloads current information technology
and communication systems and processes, impacting the ability to conduct a
Fund’s operations.
Cyber-attacks,
disruptions, or failures may adversely affect a Fund and its shareholders or
cause reputational damage and subject a Fund to regulatory fines, litigation
costs, penalties or financial losses, reimbursement or other compensation costs,
and/or additional compliance costs. For example, a Fund’s or its service
providers’ assets or sensitive or confidential information may be
misappropriated, data may be corrupted, and operations may be disrupted (e.g.,
cyber-attacks or operational failures may cause the release of private
shareholder information or confidential Fund information, interfere with the
processing of shareholder transactions, impact the ability to calculate a Fund’s
net asset value, and impede trading). In addition, cyber-attacks, disruptions,
or failures involving a Fund counterparty could affect such counterparty’s
ability to meet its obligations to the Fund, which may result in losses to the
Fund and its shareholders. Similar types of operational and technology risks are
also present for issuers of securities held by a Fund, which could have material
adverse consequences for such issuers, and may cause the Fund’s investments to
lose value. Furthermore, as a result of cyber-attacks,
122
disruptions,
or failures, an exchange or market may close or issue trading halts on specific
securities or the entire market, which may result in a Fund being, among other
things, unable to buy or sell certain securities or financial instruments or
unable to accurately price its investments.
Substantial
costs may be incurred in order to prevent any cyber-attacks, disruptions, or
failures in the future. The costs related to cyber or other security threats or
disruptions may not be fully insured or indemnified by other means. Privacy and
information security laws and regulation changes, and compliance with those
changes, may result in cost increases due to system changes and the development
of new administrative processes. In addition, a Fund may be required to expend
significant additional resources to modify its protective measures and to
investigate and remediate vulnerabilities or other exposures arising from
operational and security risks. There is no assurance that any efforts to
mitigate cybersecurity risks undertaken by a Fund, the Adviser, or third-party
service providers will be effective.
While
a Fund and its service providers may establish business continuity and other
plans and processes that seek to address the possibility of and fallout from
cyberattacks, disruptions, or failures, there are inherent limitations in such
plans and systems, including that they do not apply to third parties, such as
Fund counterparties, issuers of securities held by a Fund, or other market
participants, as well as the possibility that certain risks have not been
identified or that unknown threats may emerge in the future and there is no
assurance that such plans and processes will address the possibility of and
fallout from cyber-attacks, disruptions, or failures. In addition, a Fund cannot
directly control any cybersecurity plans and systems put in place by its service
providers, Fund counterparties, issuers of securities held by the Fund, or other
market participants.
LIBOR Transition Risk. A Fund may invest in
securities or derivatives that are based on interbank offered rates (“IBORs”).
The London Interbank Offered Rate (“LIBOR”) transition risk is the risk that the
transition away from LIBOR to alternative interest rate benchmarks is not
orderly, occurs over various time periods or has unintended consequences. LIBOR
historically had been used extensively in the U.S. and globally as a “benchmark”
or “reference rate” for various commercial and financial contracts, including
corporate and municipal bonds, bank loans, asset-backed and mortgage-related
securities, interest rate swaps and other derivatives. As a result of benchmark
reforms, publication of most LIBOR settings has ceased. Some LIBOR settings
continue to be published but only on a temporary, synthetic and
non-representative basis, although it is unclear what the impact of such a
synthetic rate may be on the securities or derivatives in which the Fund may
invest. In addition, in connection with supervisory guidance from U.S.
regulators, U.S. regulated entities have ceased to enter into most new LIBOR
contracts. There remains uncertainty regarding the nature of any replacement
rate, and any potential effects of the transition away from LIBOR on a Fund or
on certain instruments in which a Fund invests are not known. Various financial
industry groups have been planning for that transition and certain regulators
and industry groups have taken actions to establish alternative reference rates
(e.g., the Secured Overnight Financing Rate (“SOFR”), which measures the cost of
overnight borrowings through repurchase agreement transactions collateralized
with U.S. Treasury securities and is intended to replace U.S. dollar LIBOR). The
transition process may involve, among other things, an increase in volatility or
illiquidity of markets for instruments that currently rely on LIBOR, a reduction
in the value of certain instruments held by a Fund or a reduction in the
effectiveness of related Fund transactions such as hedges. Various enacted
legislation, including federally and in states such as New York, may affect the
transition of LIBOR-based instruments as well by permitting trustees and
calculation agents to transition instruments with no LIBOR transition language
to an alternative reference rate selected under such legislation. Those statutes
include safe harbors from liability, which may limit the recourse a Fund may
have if the alternative reference rate does not fully compensate the Fund for
the transition of an instrument from LIBOR. It is uncertain what effect, if any,
such legislation will have on the LIBOR transition. The effect of
discontinuation of LIBOR on the Fund’s existing investments and obligations will
depend on, among other things, (1) existing fallback provisions in
individual contracts; (2) the impact of regulatory and legislative
responses with respect to the LIBOR transition; and (3) whether, how, and
when industry participants develop and widely adopt new reference rates and
fallbacks for both legacy and new products or instruments. The Funds may invest
in securities or other derivatives that are based on other IBORs that may be
similarly discontinued. Any such effects, as well as other unforeseen effects,
could result in losses to a Fund.
123
Sovereign and Quasi-Sovereign Default Risk. The
Emerging Markets Debt Fund invests in securities issued by or guaranteed by
non-U.S. sovereign governments (known as sovereign debt securities) and in
securities issued by entities that are owned or guaranteed by non-U.S. sovereign
governments (known as quasi-sovereign debt securities). An issuer of sovereign
or quasi-sovereign debt held by the Fund, or the governmental authorities that
control the repayment of the debt, may be unable or unwilling to repay the
principal or interest when due, and the Fund may have limited recourse in the
event of a default. This may result from political or social factors, the
general economic environment of a country or levels of foreign debt or foreign
currency exchange rates. Quasi sovereign debt obligations are typically less
liquid and less standardized than sovereign debt obligations.
Aggressive Investment Technique Risk. The
Emerging Markets Debt Fund may use investment techniques and financial
instruments that may be considered aggressive, including but not limited to the
use of futures contracts, options on futures contracts, securities and indices,
forward contracts, swap agreements and similar instruments. Such techniques may
also include taking short positions or using other techniques that are intended
to provide inverse exposure to a particular market or other asset class, as well
as leverage, which can expose the Fund to potentially dramatic losses or gains.
These techniques may expose the Fund to potentially dramatic losses in the value
of certain of its portfolio holdings.
Counterparty and Contractual Default Risk. The
Emerging Markets Debt Fund’s investments in derivatives and other financial
instruments that involve counterparties subject the Fund to the risk that the
counterparty could default on its obligations under the agreement, either
through the counterparty’s failure or inability to perform its obligations or
bankruptcy. In the event of default, the Fund could experience lengthy delays in
recovering some or all of its assets as a result of bankruptcy or other
reorganization proceedings. The Fund could also experience limited recoveries or
no recovery at all, and the value of an investment in the Fund could decline as
a result. In addition, the Fund may default under an agreement with a
counterparty which could adversely affect the Fund’s investing activities.
Floating and Variable Rate Securities Risk. For
floating and variable rate securities, there may be a lag between an actual
change in the underlying interest rate benchmark and the reset time for an
interest payment of such a security, which could harm or benefit the Fund,
depending on the interest rate environment or other circumstances. In a rising
interest rate environment, for example, a floating or variable rate security
that does not reset immediately would prevent the Fund from taking full
advantage of rising interest rates in a timely manner. However, in a declining
interest rate environment, the Fund may benefit from a lag due to a security’s
interest rate payment not being immediately impacted by a decline in interest
rates.
Certain
floating and variable rate securities have an interest rate floor feature, which
prevents the interest rate payable by the security from dropping below a
specified level as compared to a reference interest rate (the “reference rate”).
Such a floor protects the Fund from losses resulting from a decrease in the
reference rate below the specified level. However, if the reference rate is
below the floor, there will be a lag between a rise in the reference rate and a
rise in the interest rate payable by the security, and the Fund may not benefit
from increasing interest rates for a significant amount of time.
Private Placement Risk. Investments in private
placements may be difficult to sell at the time and at the price desired by the
Fund; companies making private placements may make less information available
than publicly offered companies; and privately placed securities are more
difficult to value than publicly traded securities. These factors may have a
negative effect on the performance of the Fund. Securities acquired through
private placements are not registered for resale in the general securities
market and may be classified as illiquid.
High Yield Securities Risk. The Emerging
Markets Debt Fund may invest in high yield, high risk securities (also known as
junk bonds) which are considered to be speculative. These investments may be
issued by companies that are highly leveraged, less credit-worthy or financially
distressed. Non-investment grade debt securities can be more sensitive to
short-term corporate, economic and market developments. During periods of
economic uncertainty and change, the market price of the Fund’s investments and
the Fund’s net asset value may
124
be
volatile. Furthermore, though these investments generally provide a higher yield
than higher-rated debt securities, the high degree of risk involved in these
investments can result in substantial or total losses. These securities are
subject to greater risk of loss, greater sensitivity to economic changes,
valuation difficulties, and a potential lack of a secondary or public market for
securities. The market price of these securities can change suddenly and
unexpectedly.
Distressed Debt Risk. When the Emerging Markets
Debt Fund invests in obligations of financially troubled issuers (sometimes
known as “distressed” securities), there exists the risk that the transaction
involving such debt obligations will be unsuccessful, take considerable time or
will result in a distribution of cash or a new security or obligation in
exchange for the stressed and distressed debt obligations, the value of which
may be less than the Fund’s purchase price of such debt obligations.
Furthermore, if an anticipated transaction does not occur, the Fund may be
required to sell its investment at a loss or hold its investment pending
bankruptcy proceedings in the event the issuer files for bankruptcy.
Portfolio Turnover Rate Risk. Higher portfolio
turnover rates involve correspondingly higher transaction costs, which are borne
directly by a Fund. In addition, a Fund may realize significant short-term and
long-term capital gains if portfolio turnover rate is high, which will result in
taxable distributions to investors that may be greater than those made by other
funds with lower portfolio turnover rates.
Real Estate Investment Trust (“REITs”)
Risk. REITs are pooled investment vehicles that own, and usually operate,
income-producing real estate. REITs are susceptible to the risks associated with
direct ownership of real estate, such as the following: declines in property
values; increases in property taxes, operating expenses, interest rates or
competition; overbuilding; zoning changes; and losses from casualty or
condemnation. REITs typically incur fees that are separate from those of a Fund.
Accordingly, a Fund’s shareholders will indirectly bear a proportionate share of
the REITs’ operating expenses, in addition to paying Fund expenses. REIT
operating expenses are not reflected in the fee table and example in this
Prospectus.
125
MANAGEMENT
OF THE FUNDS
Trustees, Officers and Adviser. The Board of
Trustees of the William Blair Funds (the “Trust”) has overall management
responsibility. The duties of the Trustees and Officers of the Trust include
overseeing the business affairs of the Trust, monitoring investment activities
and practices and considering other matters concerning the Trust. The Statement
of Additional Information has the names of and additional information about the
Trustees and Officers of the Trust. Subject to the oversight of the Board of
Trustees, William Blair Investment Management, LLC (the “Adviser” or “WBIM”),
150 North Riverside Plaza, Chicago, Illinois 60606, is responsible for providing
investment advisory and management services to the Funds, including making
decisions regarding Fund portfolio transactions, pursuant to a management
agreement (the “Management Agreement”). The Statement of Additional Information
includes information on brokerage commissions paid by the Funds in 2023,
including amounts directed to third parties to pay for third-party research.
William Blair & Company, L.L.C. is the principal underwriter and
distributor of the Trust and acts as agent of the Trust in the sale of its
shares (the “Distributor” or “WBC”). WBIM and WBC are collectively referred to
herein as “William Blair.”
William
Blair was founded over 85 years ago by William McCormick Blair. As of
December 31, 2023, William Blair had over 1,900 employees including 229
partners. WBIM oversees the assets of the Trust, along with corporate pension
plans, endowments and foundations. As of December 31, 2023, WBIM managed
over $67 billion in equities, fixed income securities, derivatives and cash
equivalents.
The
Adviser firmly believes that clients are best served when portfolio managers are
encouraged to draw on their experience and develop new ideas. This philosophy
has helped build a hard-working, results-oriented team of 29 portfolio
managers, supported by a team of analysts. The Adviser is registered as an
investment adviser under the Investment Advisers Act of 1940.
For
the fiscal year or period, as applicable, ended December 31, 2023, each
Fund paid the Adviser an effective management fee (exclusive of any applicable
waivers / reimbursements) for services performed as a percentage of the average
daily net assets of the Fund as follows:
|
|
|
| |
Fund |
|
Effective Rate Paid as a % of Average
Daily Net Assets |
|
Growth
Fund |
|
|
0.75% |
|
Large
Cap Growth Fund |
|
|
0.60% |
|
Mid
Cap Value Fund |
|
|
0.70% |
|
Small-Mid
Cap Core Fund |
|
|
0.90% |
|
Small-Mid
Cap Growth Fund |
|
|
0.96% |
(1) |
Small-Mid
Cap Value Fund |
|
|
0.80% |
|
Small
Cap Growth Fund |
|
|
0.99% |
(2) |
Small
Cap Value Fund |
|
|
0.75% |
|
Global
Leaders Fund |
|
|
0.85% |
|
International
Leaders Fund |
|
|
0.85% |
|
International
Growth Fund |
|
|
0.94% |
|
Institutional
International Growth Fund |
|
|
0.94% |
|
International
Small Cap Growth Fund |
|
|
1.00% |
|
Emerging
Markets Leaders Fund |
|
|
0.94% |
|
Emerging
Markets Growth Fund |
|
|
0.94% |
|
Emerging
Markets ex China Growth Fund |
|
|
0.94% |
|
Emerging
Markets Small Cap Growth Fund |
|
|
1.10% |
|
China
Growth Fund |
|
|
0.94% |
|
Emerging
Markets Debt Fund |
|
|
0.65% |
|
126
(1) |
Effective
May 1, 2023, the management fee payable by the Small-Mid Cap Growth
Fund was reduced to 0.94% of the Fund’s average daily net assets. For the
fiscal year ended December 31, 2022, the Fund paid the Adviser a
contractual management fee equal to 1.00% of the Fund’s average daily net
assets. |
(2) |
Effective
May 1, 2023, the management fee payable by the Small Cap Growth Fund
was reduced to 0.94% of the Fund’s average daily net assets. For the
fiscal year ended December 31, 2022, the Fund paid the Adviser a
contractual management fee equal to 1.10% of the Fund’s average daily net
assets. |
Expense Waivers. The Adviser has entered
into a contractual agreement with each Fund listed below to waive fees and/or
reimburse expenses, if necessary, in order to limit the Fund’s operating
expenses (excluding interest expenses, taxes, brokerage commissions, acquired
fund fees and expenses, dividend and interest expenses on short sales, other
investment-related costs and extraordinary expenses, such as litigation and
other expenses not incurred in the ordinary course of the Fund’s business) for
each class to the levels reflected in the table below until April 30, 2025.
The agreement terminates upon the earlier of April 30, 2025 or the
termination of the Management Agreement.
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
Class I |
|
|
Class R6/ Institutional Fund |
|
Growth
Fund |
|
|
1.20% |
|
|
|
0.95% |
|
|
|
0.90% |
|
Large
Cap Growth Fund |
|
|
0.90% |
|
|
|
0.65% |
|
|
|
0.60% |
|
Mid
Cap Value Fund(1) |
|
|
N/A |
|
|
|
0.75% |
|
|
|
0.70% |
|
Small-Mid
Cap Core Fund |
|
|
N/A |
|
|
|
0.95% |
|
|
|
0.90% |
|
Small-Mid
Cap Growth Fund |
|
|
1.24% |
|
|
|
0.99% |
|
|
|
0.94% |
|
Small-Mid
Cap Value Fund(1) |
|
|
N/A |
|
|
|
0.85% |
|
|
|
0.80% |
|
Small
Cap Growth Fund |
|
|
1.24% |
|
|
|
0.99% |
|
|
|
0.94% |
|
Small
Cap Value Fund |
|
|
1.15% |
|
|
|
0.89% |
|
|
|
0.85% |
|
Global
Leaders Fund |
|
|
1.15% |
|
|
|
0.90% |
|
|
|
0.85% |
|
International
Leaders Fund |
|
|
1.15% |
|
|
|
0.90% |
|
|
|
0.85% |
|
International
Growth Fund |
|
|
1.24% |
|
|
|
0.99% |
|
|
|
0.94% |
|
Institutional
International Growth Fund |
|
|
N/A |
|
|
|
N/A |
|
|
|
0.94% |
|
International
Small Cap Growth Fund |
|
|
1.35% |
|
|
|
1.10% |
|
|
|
1.05% |
|
Emerging
Markets Leaders Fund |
|
|
1.24% |
|
|
|
0.99% |
|
|
|
0.94% |
|
Emerging
Markets Growth Fund |
|
|
1.24% |
|
|
|
0.99% |
|
|
|
0.94% |
|
Emerging
Markets ex China Growth Fund(1) |
|
|
N/A |
|
|
|
0.99% |
|
|
|
0.94% |
|
Emerging
Markets Small Cap Growth Fund |
|
|
1.40% |
|
|
|
1.15% |
|
|
|
1.10% |
|
China
Growth Fund(1) |
|
|
N/A |
|
|
|
0.99% |
|
|
|
0.94% |
|
Emerging
Markets Debt Fund(1) |
|
|
N/A |
|
|
|
0.70% |
|
|
|
0.65% |
|
(1) |
Because
of the expense limitation agreement and the recoupment provision for the
Mid Cap Value Fund, Small-Mid Cap Value Fund, Emerging Markets ex China
Growth Fund, China Growth Fund, and Emerging Markets Debt Fund, each Fund
may pay the Adviser less than the contractual management fee.
|
With
respect to each of the Mid Cap Value Fund, Small-Mid Cap Value Fund, Emerging
Markets ex China Growth Fund, China Growth Fund, and Emerging Markets Debt Fund,
the Adviser is entitled to recoupment of previously waived fees and reimbursed
expenses for a period of three years subsequent to each Fund’s commencement of
operations (March 16, 2022, August 17, 2023, July 29, 2022,
August 27, 2021, and May 25, 2021, respectively) to the extent that
such recoupment does not cause the Fund’s annual Fund operating expenses (after
the recoupment is taken into account) to exceed both (1) the expense limit
in place when such amounts were waived or reimbursed, and (2) such Fund’s
current expense limitation.
Board Considerations of Management
Agreement. The Semi-Annual Report for the period ending June 30,
2024 will contain a discussion regarding the factors the Board of Trustees
considered for the approval and renewal, as applicable, of the Management
Agreement for each Fund.
127
Additional Information. The Trust enters into
contractual arrangements with various parties, including, among others, each
Fund’s investment adviser, custodian, transfer agent, accountants and
distributor, who provide services to each Fund. Shareholders are not parties to,
or intended (or “third-party”) beneficiaries of, any of those contractual
arrangements, and those contractual arrangements are not intended to create in
any individual shareholder or group of shareholders any right to enforce the
terms of the contractual arrangements against the service providers or to seek
any remedy under the contractual arrangements against the service providers,
either directly or on behalf of the Trust.
This
Prospectus provides information concerning the Trust and the Funds that you
should consider in determining whether to purchase shares of a Fund. Each Fund
may make changes to this information from time to time. Neither this Prospectus,
the SAI or any document filed as an exhibit to the Trust’s registration
statement, is intended to, nor does it, give rise to an agreement or contract
between the Trust or any Fund and any shareholder, or give rise to any contract
or other rights in any individual shareholder, group of shareholders or other
person other than any rights conferred explicitly by federal or state securities
laws that may not be waived.
Portfolio Management. Additional information is
provided below on each Fund’s portfolio manager(s) identified in the Summary
section. The Statement of Additional Information provides additional information
about the portfolio managers including the structure of their compensation,
other accounts they manage and their ownership of securities in the Funds.
For
each Fund that is managed by a portfolio management team, each member of the
portfolio management team has equal responsibility for the Fund’s investment
strategy, asset allocation, portfolio construction and security selection. All
portfolio managers are supported by a team of research analysts.
Alaina
Anderson, CFA, a Partner of William Blair Investment Management, LLC, has
co-managed the International Leaders Fund since 2021. Ms. Anderson has
managed the Adviser’s International Leaders ADR strategy since 2019. Before
that, Ms. Anderson covered multiple sectors as a research analyst for the
Adviser, including the Consumer and Health Care sectors, along with her most
recent responsibilities covering real assets companies. Before joining William
Blair in 2006, she was a senior analyst in the investments department of the
MacArthur Foundation, where she provided research support for internally managed
portfolios and was involved in investment manager due diligence, selection, and
monitoring for the foundation’s U.S., non-U.S., and hedge-fund portfolios.
Before joining the MacArthur Foundation, Alaina was an investor relations
consultant with Ashton Partners and a financial advisor with UBS PaineWebber.
She has the Chartered Financial Analyst designation and is a member of the CFA
Institute and the CFA Society Chicago. Education: B.S., Wharton School at the
University of Pennsylvania; M.B.A., University of Chicago’s Booth School of
Business.
Marcelo
Assalin, CFA, a Partner of William Blair Investment Management, LLC, has
co-managed the Emerging Markets Debt Fund since its inception. He is the head of
the Emerging Markets Debt team and is a portfolio manager. He is also a member
of the leadership team for William Blair Investment Management. Prior to joining
William Blair, Mr. Assalin was the Head of Emerging Markets Debt at NN
Investment Partners (formerly ING Investment Management), a role he began in
2015. Additionally, he was the lead portfolio manager for blended debt
portfolios. Previously, he was the lead portfolio manager for NNIP’s local
currency strategies. Before joining NNIP in 2013, he was a senior emerging
markets debt portfolio manager and then head of Emerging Markets Sovereign Debt
at ING IM USA (now Voya Financial). Prior to ING IM, Mr. Assalin was with
SulAmerica Investimentos in various investment capacities, including CIO from
2005 to 2008. He began his career as a credit analyst at Bank Boston in Sao
Paulo, covering Brazilian companies. He also has the Chartered Financial Analyst
designation. Education: B.A., Business Administration & Accounting,
Universidade de São Paulo.
Paul
Birchenough, an Associate of William Blair Investment Management, LLC, has
co-managed the Emerging Markets Leaders Fund since 2024. Before joining William
Blair in 2024, Mr. Birchenough was a global emerging markets portfolio
manager at Newton Investment Management from 2020-2024. From 2011-2020,
128
Mr. Birchenough
was a global emerging market equity portfolio manager at AXA Investment
Managers. Prior to AXA, Mr. Birchenough was a research analyst at Nevsky
Capital. Before Nevsky Capital, Mr. Birchenough held various roles at KPMG,
including positions in corporate finance, transaction services and audit.
Education: BSc (Hons), Mathematics, Nottingham University.
Daniel
Crowe, CFA, a Partner of William Blair Investment Management, LLC, has
co-managed the Small-Mid Cap Growth Fund since 2015 and the Small-Mid Cap Core
Fund since its inception in 2019. He joined William Blair as a research analyst
in 2011. Prior to joining William Blair, he was a midcap portfolio manager at
Pyramis Global Advisors, and prior to that he was a portfolio manager and
analyst at The Boston Company/Founders Asset Management. He began his career as
a generalist analyst at Marsico Capital Management. He has the Chartered
Financial Analyst designation and is a member of the CFA Institute and the CFA
Society of Chicago. Education: B.S., Mechanical Engineering, University of
Illinois at Urbana-Champaign.
Simon
Fennell, a Partner of William Blair Investment Management, LLC, has co-managed
the International Growth Fund, the Institutional International Growth Fund, and
the International Leaders Fund since 2013, as well as the International Small
Cap Growth Fund since 2017 along with associated separate accounts and
commingled fund portfolios. He joined William Blair in 2011 as a research
analyst, also focusing on idea generation and strategy more broadly. Prior to
joining William Blair, he was a Managing Director in the Equities division at
Goldman Sachs in London and Boston, where he was responsible for institutional,
equity research coverage for European and International stocks. Previously, he
was in the Corporate Finance Group at Lehman Brothers in London and Hong Kong,
working in the M&A and Debt Capital Markets Groups. Education: M.A.,
University of Edinburgh; M.B.A., Johnson Graduate School of Management, Cornell
University.
Matthew
Fleming, CFA, an Associate of William Blair Investment Management, LLC, has
co-managed the Mid Cap Value Fund since its inception in 2022, the Small-Mid Cap
Value Fund since its inception in 2023, and the Small Cap Value Fund since 2024.
Mr. Fleming is a research analyst for the Adviser’s small- to mid-cap value
equity strategies. He focuses on the energy, utilities and industrials sectors.
Before joining William Blair in 2021, Mr. Fleming was a member of the
small- to mid-cap value equity teams at Investment Counselors of Maryland, LLC.
Before joining Investment Counselors of Maryland, LLC in 2008, Mr. Fleming
was a senior research analyst at PNC Capital Advisors/Mercantile Capital
Advisors from 2004 to 2008. Before becoming a research analyst, Mr. Fleming
held various roles at GB Asset Advisors, Triumph Group, and BT Alex.
Brown/Deutsche Bank AG. He has the Chartered Financial Analyst designation.
Education: B.A., Princeton University.
David
Fording, CFA, a Partner of William Blair Investment Management, LLC, has managed
or co-managed the Growth Fund since 2006. He joined William Blair in November of
2005 as a co-portfolio manager of William Blair’s Institutional All Cap Growth
strategy. He joined William Blair from TIAA-CREF Investment Management, Inc.
where he spent ten years, most recently as a co-portfolio manager of the
TIAA-CREF Mid Cap Growth Fund Team (from 2003 to 2005). Previously, he was an
equity analyst for TIAA-CREF responsible for covering media and entertainment
stocks on a global basis. He was also a member of TIAA-CREF’s Large Cap Growth
portfolio management team from 1997 to 1999. He has the Chartered Financial
Analyst designation and is a member of the CFA Institute and the CFA Society of
Chicago. In addition, he is a Fundamentals of Sustainability Accounting
Credential holder. Education: B.A., Tufts University; M.B.A., Stern School of
Business, New York University.
James
Golan, CFA, a Partner of William Blair Investment Management, LLC, has
co-managed the Large Cap Growth Fund since 2005. He joined William Blair in 2000
as a research analyst. In 2005, he joined the Institutional Large Cap Growth
Team as a co-portfolio manager. Previously, he was a research analyst with
Citigroup Global Asset Management and Scudder Kemper Investments. He has the
Chartered Financial Analyst designation and is a member of the CFA Institute and
the CFA Society of Chicago. Education: B.A., DePauw University; M.B.A.,
Northwestern University Kellogg Graduate School of Management.
William
V. Heaphy, CFA, an Associate of William Blair Investment Management, LLC, has
co-managed the Small Cap Value Fund since 2021 (and had managed the Predecessor
Fund since 1999), the Mid Cap Value Fund
129
since
its inception in 2022, and the Small-Mid Cap Value Fund since its inception in
2023. Mr. Heaphy has over 27 years of investment experience. He joined
William Blair in 2021. Previously, Mr. Heaphy was a Principal at Investment
Counselors of Maryland, LLC, which he joined in 1994. He has the Chartered
Financial Analyst designation. Education: B.S., Lehigh University; J.D.,
University of Maryland.
Jared
Lou, CFA, an Associate of William Blair Investment Management, LLC, has
co-managed the Emerging Markets Debt Fund since 2024. He has served as a hard
and local currency portfolio manager on William Blair’s Emerging Markets Debt
team since 2020. Before joining William Blair in 2020, he was a portfolio
manager on NN Investment Partners’ Emerging Markets Debt team, where he was
responsible for Latin American hard currency sovereign and quasi-sovereign debt.
Before joining NNIP in 2016, Mr. Lou was a sovereign analyst on Grantham,
Mayo, van Otterloo’s Emerging Markets Debt team. Previously, he worked in risk
management at State Street Global Markets and quantitative research at Property
and Portfolio Research. He has the Chartered Financial Analyst designation.
Education: B.A. (cum laude) and M.A.,
Economics, Tulane University; M.B.A., MIT Sloan School of Management.
Kenneth
J. McAtamney, a Partner of William Blair Investment Management, LLC, has
co-managed the Global Leaders Fund since 2008, the International Leaders Fund
since its inception in 2012, the International Growth Fund and the Institutional
International Growth Fund since 2017 along with associated separate account and
commingled fund portfolios. He joined William Blair in 2005 as an international
stock analyst. From 1997 to 2005, he was with Goldman Sachs in various
capacities, including as a Vice President representing both International and
Domestic Equities. Education: B.A., Finance, Michigan State University; M.B.A.,
Indiana University.
Todd
M. McClone, CFA, a Partner of William Blair Investment Management, LLC, has
co-managed the Emerging Markets Growth Fund since its inception in 2005, the
Emerging Markets Leaders Fund since 2008, the Emerging Markets Small Cap Growth
Fund since its inception in 2011, and the Emerging Markets ex China Growth Fund
since its inception in 2022 along with associated separate account and
commingled fund portfolios. He has been with William Blair since 2000. From 1993
through 2000, he was a senior research analyst specializing in international
equity for Strong Capital Management. Prior to joining Strong Capital
Management, he was a Corporate Finance Research Analyst with Piper Jaffray. At
Piper Jaffray, he worked with the corporate banking financials team on a variety
of transactions including initial public offerings, mergers and acquisitions and
subordinated debt offerings, and issued fairness opinions and conducted private
company valuations. He has the Chartered Financial Analyst designation and is a
member of the CFA Institute. Education: B.B.A. and B.A., University of
Wisconsin-Madison.
D.J.
Neiman, CFA, a Partner of William Blair Investment Management, LLC, has
co-managed the Emerging Markets Small Cap Growth Fund and International Small
Cap Growth Fund since 2021. Mr. Neiman served as co-director of research
for the global equity team from 2016 to 2021. He also was a global equity
research analyst covering large- and mid-cap financial companies. Before joining
the Adviser in 2009, Mr. Neiman was an analyst in William Blair’s sell-side
research group, covering the financials sector with a focus on the
asset‑management and advisory investment-banking industries. Previously, he was
a senior accountant with William Blair Funds and a fund analyst at Scudder
Kemper Investments. He has the Chartered Financial Analyst designation and is a
member of the CFA Institute and the CFA Society Chicago. Education: B.S.,
University of Miami; M.B.A., (with high distinction), University of Michigan’s
Ross School of Business.
Casey
Preyss, CFA, a Partner of William Blair Investment Management, LLC, has
co-managed the Emerging Markets Growth Fund since 2015, and the Emerging Markets
Small Cap Growth Fund since 2016 along with associated separate account and
commingled fund portfolios. Having joined William Blair in 2000, Mr. Preyss
was previously a research analyst covering the Industrials, IT and Resources
sectors and also served as the Global Industrials Sector Team Leader. Prior to
his research responsibilities, Mr. Preyss was a Quantitative Analyst with
the team. Prior to joining William Blair, Mr. Preyss was with Thomas White
International as an International Equity Research Sales Associate. He has the
Chartered Financial Analyst designation. Education: B.S. B.A., The Ohio State
University; M.B.A., University of Chicago Booth School of Business.
130
David
Ricci, CFA, a Partner of William Blair Investment Management, LLC, has
co-managed the Large Cap Growth Fund since 2011. He has been with William Blair
since February 1994 when he started as a research analyst for the
Consumer/Retail sell-side research effort at William Blair. He was made group
head in June 2001. Previously, he was with Procter & Gamble, Melville,
and spent 21⁄2 years as a strategy consultant at
Bain & Company. He has the Chartered Financial Analyst designation and
is a member of the CFA Institute and the CFA Society of Chicago. Education:
Sc.B., Brown University, magna cum laude; M.B.A., Harvard Business School.
Marco
Ruijer, CFA, an Associate of William Blair Investment Management, LLC, has
co-managed the Emerging Markets Debt Fund since its inception. He is a hard
currency portfolio manager on the Emerging Markets Debt team. Prior to joining
William Blair, Mr. Ruijer was the lead portfolio manager within the Emerging
Markets Debt team at NN Investment Partners (formerly ING Investment
Management), responsible for managing emerging markets debt hard currency
portfolios. Before joining NNIP in 2013, he was a senior fund manager for
emerging markets debt at Mn Services in the Netherlands where he managed various
emerging markets debt portfolios. Prior to this, he worked with the Investment
Strategy and Risk Management team. Mr. Ruijer began his career in 1998 as
an Investment Trainee at Mn. He has the Chartered Financial Analyst designation.
Education: M.A., International Financial Economics, University of Amsterdam.
Hugo
Scott-Gall, a Partner of William Blair Investment Management, LLC, has
co-managed the Global Leaders Fund since 2021 and the Emerging Markets Leaders
Fund since 2022 along with associated separate account and commingled fund
portfolios. He also serves as co-director of research for the global equity
team. He is also a thematic strategist. He is responsible for researching
longer-term trends affecting corporate performance and developing systematic
solutions for broad investment challenges. Before joining William Blair in 2018,
Mr. Scott-Gall was a managing director and head of the thematic research
team at Goldman Sachs that investigated thematic changes, analyzed their effects
across industries, and sought to identify long-term structurally advantaged
companies. He produced Fortnightly Thoughts, a publication offering thematic
insights, and GS Sustain, a long-term-focused publication that sought to
identify best-in-breed companies. He also oversaw GS Dataworks, a team that used
alternative data to augment fundamental research. Before his move into thematic
research, Mr. Scott-Gall was an equity research analyst covering European
transportation companies. Before Goldman Sachs, he was an equity research
analyst at Fidelity Investments.
Ward
Sexton, CFA, a Partner of William Blair Investment Management, LLC, has
co-managed the Small Cap Growth Fund since 2016 and the Small-Mid Cap Core Fund
since its inception in 2019. In 2001, he joined the Fund’s investment team as a
research analyst and covered Resources, Financials, and Consumer companies at
various points during his time as an analyst. He joined William Blair in 1999
and worked in the firm’s corporate finance group for two years. He has the
Chartered Financial Analyst designation and is a member of the CFA Institute and
the CFA Society of Chicago. Education: B.S., Finance (with honors), University
of Illinois Urbana-Champaign; M.B.A., (high honors), University of Chicago Booth
School of Business.
Andrew
Siepker, CFA, a Partner of William Blair Investment Management, LLC, has
co-managed the International Growth Fund and the Institutional International
Growth Fund since 2022 along with associated separate account and commingled
fund portfolios. Mr. Siepker is also a global equity research analyst
covering industrial companies. Previously, he was a research analyst conducting
non-U.S. consumer research and worked on William Blair’s sell-side as a research
associate focused on e-commerce and hardline retailers. Before joining William
Blair in 2006, Mr. Siepker was a financial analyst in a finance training
program at First Data Corporation. He has the Chartered Financial Analyst
designation and is a member of the CFA Institute and the CFA Society Chicago.
Education: B.S., Finance (with high distinction), University of Nebraska.
Ian
Smith, an Associate of William Blair Investment Management, LLC, has co-managed
the Emerging Markets Leaders Fund since 2024. Before joining William Blair in
2024, Mr. Smith was a global emerging markets portfolio manager at Newton
Investment Management from 2020-2024. From 2012-2020, Mr. Smith was a
global emerging market equity portfolio manager at AXA Investment Managers.
Prior to AXA, Mr. Smith was a research analyst covering Asian financials at
Matrix Group. Before Matrix Group, Mr. Smith was a research analyst
covering emerging market financials at Nevsky Capital. Education: B.A.,
Economics and Politics, Durham University.
131
Mark
Thompson, CFA, a Partner of William Blair Investment Management, LLC, has
co-managed the Small Cap Growth Fund since 2020 and the Growth Fund since 2024.
Previously, he was a research analyst and an associate portfolio manager on
William Blair’s Small Cap Growth strategy. In Mr. Thompson’s research role,
he focused on U.S. small cap stocks across sectors. Before joining the firm as a
research analyst in 2006, he was a research generalist at Kidron Capital for
three years. Before that, he was a research analyst covering healthcare at
American Express for two years. He has the Chartered Financial Analyst
designation and is a member of the CFA Institute and the CFA Society Chicago.
Education: B.B.A., Finance (with an emphasis on accounting) and M.B.A. (with an
emphasis on finance), University of Iowa.
Vivian
Lin Thurston, CFA, a Partner of William Blair Investment Management, LLC, has
co-managed the China Growth Fund and the Emerging Markets Growth Fund since 2021
and the Emerging Markets ex China Growth Fund since its inception in 2022. Since
2018, Ms. Thurston has been a portfolio manager for William Blair’s China
A-Shares Growth strategy and a global research analyst covering Chinese
equities. Previously, she was a global research analyst covering large-cap
consumer companies for the Adviser. Before joining William Blair in 2016, Ms.
Thurston was vice president and consumer sector head at Calamos Investments.
Prior to that, she was an executive director and senior investment analyst at
UBS Global Asset Management/Brinson Partners, where she was responsible for
stock selection and research for consumer sectors in the United States and
emerging markets. Ms. Thurston also held roles at Mesirow Financial, China
Agribusiness Development Trust and Investment Corporation, and Vanke. She has
the Chartered Financial Analyst designation and is a member of the CFA Institute
and the CFA Society Chicago. Education: B.A., Sociology, Peking University;
M.A., Sociology and M.S., Finance, University of Illinois Urbana-Champaign.
Nicholas
Zimmerman, CFA, a Partner of William Blair Investment Management, LLC, has
co-managed the Small-Mid Cap Growth Fund since 2023. He joined William Blair in
2017 as a research analyst focusing on U.S. small- and mid-cap resources
companies. Before joining William Blair, Mr. Zimmerman was an equity
analyst at Holland Capital Management, where he covered energy, materials,
aerospace and defense, and transportation companies. He has the Chartered
Financial Analyst designation and is a member of the CFA Institute and the CFA
Society Chicago. Education: B.S. Finance, with high honors, University of
Illinois Urbana-Champaign; M.S., Finance, University of Wisconsin–Madison.
Custodian. The Custodian for the Funds is State
Street Bank and Trust Company, One Congress Street, Suite 1, Boston,
Massachusetts 02114. The Custodian is responsible for custody of portfolio
securities, fund accounting and the calculation of each Fund’s net asset value.
Transfer Agent and Dividend Paying Agent. The
Transfer Agent and Dividend Paying Agent is SS&C Global Investor and
Distribution Solutions, Inc. (“SS&C GIDS”), P.O. Box 219137, Kansas City,
Missouri 64121-9137.
132
YOUR
ACCOUNT
CLASS
N SHARES
Class N
shares are offered to investors who acquire the shares directly through the
Distributor or through those financial intermediaries with whom the Distributor
has entered into written agreements specifically authorizing them to sell
Class N shares. Investors may hold Class N shares through a taxable
account or through certain tax-advantaged accounts.
Minimum Investments. The minimum initial
investment for an account generally is $2,500. The minimum subsequent investment
generally is $1,000. William Blair may make exceptions to these requirements,
which are discussed below.
CLASS
I SHARES
Class I
shares are offered to investors who acquire the shares directly through the
Distributor or through those financial intermediaries with whom the Distributor
has entered into written agreements specifically authorizing them to sell
Class I shares.
Class I
shares are available for purchase by the following categories of investors who
meet the minimum investment requirements (except as noted):
|
• |
|
institutional investors;
|
|
• |
|
qualified retirement
plans, including, but not limited to, 401(k) plans, 457 plans,
employer-sponsored 403(b) plans, defined benefit plans and other similar
accounts, or plans whereby Class I shares are held through omnibus
accounts (either at the plan level or the level of the plan
administrator); |
|
• |
|
non-qualified deferred
compensation plans (either at the plan level or the level of the plan
administrator); |
|
• |
|
investors who invest
through fee-based advisory or brokerage programs of financial
intermediaries that have written agreements with the Distributor and
generally hold such shares through an omnibus account held at the Fund;
and |
|
• |
|
asset-based fee advisory
clients of William Blair. |
To
the extent a shareholder or group of shareholders (either directly or through an
intermediary) are not listed in the above categories but they held Class I
shares of a Fund prior to May 1, 2019, such investors are entitled to
continue to invest in Class I shares of that Fund.
Minimum Investments. The minimum initial
investment for an account generally is $500,000 (or any lesser amount if, in
William Blair’s opinion, the investor has adequate intent and availability of
funds to reach a future level of investment of $500,000). There is no minimum
for subsequent purchases.
There
is no minimum initial investment for:
|
• |
|
qualified retirement
plans, including, but not limited to 401(k) plans, 457 plans,
employer-sponsored 403(b) plans, defined benefit plans and other similar
accounts, or plans whereby Class I shares are held through omnibus
accounts (either at the plan level or the level of the plan
administrator); or |
|
• |
|
asset-based fee advisory
clients of William Blair. |
William
Blair may make certain additional exceptions to these requirements, which are
discussed below. The Funds will consider requests by holders of Class N
shares to convert such shares to Class I shares on a case by case basis,
provided eligibility requirements and relevant minimums are met.
133
CLASS
R6 SHARES
Class R6
shares are offered to investors who acquire the shares directly through the
Distributor or through those financial intermediaries with whom the Distributor
has entered into written agreements specifically authorizing them to sell
Class R6 shares.
Class R6
shares are offered to the following investors, provided that neither these
investors nor their intermediaries require a Fund to make any type of servicing
or administrative payments with respect to Class R6 shares:
|
• |
|
qualified retirement
plans, including, but not limited to, 401(k) plans, 457 plans, employer
sponsored 403(b) plans, defined benefit plans and other accounts or plans
whereby Class R6 shares are held through omnibus accounts (either at
the plan level or the level of the plan administrator);
|
|
• |
|
non-qualified deferred
compensation plans (either at the plan level or the level of the plan
administrator); |
|
• |
|
tax-exempt retirement
plans (e.g., Profit Sharing, 401(k), Money Purchase Pension and Defined
Benefit Plans) of William Blair and its affiliates and rollover accounts
from those plans; |
|
• |
|
Board members of the
Trust and partners and employees of William Blair and their families
purchasing directly from the Distributor; |
|
• |
|
other investment
companies; |
|
• |
|
other institutional
investors; |
|
• |
|
investors who invest
through fee-based advisory or brokerage programs of financial
intermediaries that hold such shares through an omnibus account at the
Fund; and |
|
• |
|
certain asset-based fee
advisory clients of William Blair. |
Class R6
shares are not available to retail taxable or tax-advantaged accounts seeking to
invest directly in the Funds outside of an omnibus account maintained by an
intermediary, except as noted above. To the extent a shareholder or group of
shareholders (either directly or through an intermediary) are not listed in the
above categories but they held Institutional Class shares of a Fund prior
to May 1, 2019, such investors are entitled to continue to invest in
Class R6 shares of that Fund. The Funds will consider requests by holders
of Class I shares to convert such shares to Class R6 shares on a case
by case basis, provided eligibility requirements and relevant minimums are met.
Minimum Investments. The minimum initial
investment for an account is $1 million (or any lesser amount if, in
William Blair’s opinion, the investor has adequate intent and availability of
funds to reach a future level of investment of $1 million). There is no minimum
for subsequent purchases.
There
is no minimum initial investment for:
|
• |
|
qualified retirement
plans, including, but not limited to, 401(k) plans, 457 plans,
employer-sponsored 403(b) plans, defined benefit plans and other similar
accounts, or plans whereby Class R6 shares are held through omnibus
accounts (either at the plan level or the level of the plan
administrator); or |
|
• |
|
asset-based fee advisory
clients of William Blair that have been approved by the Distributor for
investment in Class R6 shares. |
William
Blair’s partners and employees, the Board members of the Trust and their family
members will not be subject to the minimum investment requirement. Tax-exempt
retirement plans (Profit Sharing, 401(k), Money Purchase Pension and Defined
Benefit Plans) of William Blair and its affiliates and rollover accounts from
those plans will also be exempt from the minimum investment requirement. William
Blair may make certain additional exceptions to these requirements, which are
discussed below.
134
Share Class Minimum Maintenance. If an
account’s balance falls below the minimum initial investment amount for that
share class due to account redemptions (and not due to market depreciation), the
Funds reserve the right to convert or redeem shares held by the account in the
following manner:
|
• |
|
Class N shares may
be redeemed if the account value falls below the investment minimum for
Class N shares. |
|
• |
|
Class I shares may
be converted to Class N shares if the account value falls below the
investment minimum for Class I shares but meets the investment
minimum for Class N shares. Class I shares may be redeemed if
the account value falls below the investment minimum for Class N
shares. |
|
• |
|
Class R6 shares may
be converted to Class I shares if the account value falls below the
investment minimum for Class R6 shares but meets the investment
minimum for Class I shares. Class R6 shares may be redeemed if
the account value falls below the investment minimum for Class I
shares. |
The
applicable shareholder or intermediary will be notified prior to any such
redemption or conversion and will be allowed 60 days to make additional
investments and bring the account into compliance with the applicable investment
minimum before any conversion or redemption occurs. Any conversion will occur at
the relative net asset value of the two applicable share classes at the time of
conversion and the account value will not change as a result of the conversion,
although the number of shares held may change.
Where
a retirement plan or other financial intermediary holds Class I or
Class R6 shares on behalf of its participants or clients, shares held by
such participants or clients will be converted to Class N shares as
described above when a participant or client rolls over its accounts with the
retirement plan or financial intermediary into an individual retirement account
and such participant or client is not otherwise eligible to purchase
Class I or Class R6 shares.
A
conversion between share classes of the same Fund is generally not a taxable
event. Please consult your tax advisor for an assessment of the tax implications
of any conversion.
INSTITUTIONAL
CLASS SHARES
The
Institutional International Growth Fund offers Institutional Class shares that
are designed for institutional investors, including, but not limited to,
employee benefit plans, endowments, foundations, trusts and corporations, who
are able to meet the Institutional Class shares’ high minimum investment
requirement. Each account must separately meet the minimum investment
requirement. Institutional Class shares are not subject to a Rule 12b-1 fee or
shareholder administration fee.
Minimum
Investments. The minimum initial investment is $5 million. There is no minimum
for subsequent purchases. The Distributor reserves the right to offer
Institutional Class shares without regard to the minimum purchase amount
requirements to qualified or non-qualified employee benefit plans when an
unaffiliated third party provides administrative and/or other support services
to the plan. The Distributor may also waive the minimum initial investment of $5
million for investors who enter into a letter of intent with the Institutional
International Growth Fund or the Distributor. Certain exceptions to the minimum
initial investment amount may apply. The initial investment must be accompanied
by the account application and corporate resolutions, if applicable. The Trust
does not impose any sales charges in connection with purchases of Institutional
Class shares, although service agents and other institutions may charge their
clients a fee in connection with purchases for the accounts of their clients.
ADDITIONAL
INFORMATION AND EXCEPTIONS TO ELIGIBILITY AND MINIMUM INVESTMENT REQUIREMENTS
FOR CLASS N, CLASS I AND CLASS R6 SHARES
The
Distributor may accept investments that are less than the minimums set forth
above under a group payroll deduction or similar plan. Investors investing
through certain tax-qualified retirement plans and wrap fee
135
programs
may be subject to different, lower or no minimums. For omnibus accounts that
meet the minimum investment requirement, the Trust does not impose any minimum
investment amounts for sub-accounts, although the firm holding the omnibus
account may impose its own minimum investment requirements. The Distributor may,
in its discretion, waive or reduce investment minimums in other circumstances.
The
Trust does not impose any sales charges in connection with purchases of
Class N, Class I or Class R6 shares, although financial
intermediaries and other institutions may charge their clients a fee in
connection with purchases for the accounts of their clients.
The
Distributor may, in its sole discretion, reject any purchase order from the
shareholder and/or intermediary involved.
ADDITIONAL
INFORMATION FOR CLASS N SHARES
Distribution Agreement. The Trust has adopted a
plan under Rule 12b-1 of the 1940 Act, that applies only to Class N shares
that provides for a fee at the annual rate of 0.25% of each Fund’s average daily
net assets attributable to Class N shares for distribution and other
services provided to shareholders of Class N. Because 12b-1 fees are paid
out of Fund assets on an ongoing basis, they will, over time, increase the cost
of investment in Class N shares and may cost more than other types of sales
charges. As a result, long-term shareholders may pay more than the economic
equivalent of the maximum initial sales charge permitted by FINRA.
ADDITIONAL
INFORMATION ON OTHER PAYMENTS TO FINANCIAL INTERMEDIARIES
Class N
and Class I shares of the Funds may reimburse William Blair for fees paid
on a Fund’s behalf to intermediaries such as banks, broker-dealers, financial
advisers or other financial institutions for sub-administration, sub-transfer
agency and other services provided to shareholders whose shares are held of
record in omnibus, other group accounts, retirement plans or accounts traded
through registered securities clearing agents. These fees may be based on the
number of subaccounts serviced or based on average net assets held in the Funds
for Class N and Class I shares.
William
Blair, out of its own resources and without additional cost to the Funds or
their shareholders, provides additional cash payments to certain intermediaries
(which may be referred to as revenue sharing). Such payments to intermediaries
are in addition to distribution fees, fees paid for sub-administration,
sub-transfer agency or other services paid or payable by Class N or
Class I shares of the Funds. William Blair may pay firms for
administrative, sub-accounting or shareholder processing services and/or for
providing Class N, Class I or Class R6 shares of the Funds with
“shelf space” or access to a third-party platform, inclusion of Class N,
Class I or Class R6 shares of the Funds on preferred or recommended
sales lists, mutual fund “supermarket” platforms and other sales programs,
allowing William Blair access to an intermediary’s conferences and meetings and
other forms of marketing support. The level of payments made may be a fixed fee
or based on one or more of the following factors: current assets, number of
accounts and/or number of transactions for Class N, Class I or
Class R6 shares attributable to the intermediary or fund type or other
measure agreed to by William Blair and the intermediary. The amount of payments
is different for different intermediaries.
The
Distributor currently makes payments to intermediaries in amounts that generally
range from 0.01% to 0.15% of the assets of the Funds’ shares serviced and
maintained by the intermediary. These amounts are subject to change. Receipt of,
or the prospect of receiving, this compensation may influence the intermediary’s
recommendation of the Funds or availability of the Funds through the
intermediary. Further information on payments to third parties is included in
the Statement of Additional Information.
INTERNATIONAL
SMALL CAP GROWTH FUND
The
International Small Cap Growth Fund is closed to investors, except as noted
below. Unless you fit into one of the investor categories described below, you
may not invest in the Fund.
136
You
may purchase Fund shares through your existing Fund account and reinvest
dividends and capital gains in the Fund if you are:
|
• |
|
A current Fund
shareholder (Fund shareholders holding Class N or Class I shares
of the Fund through qualified retirement plans, including, but not limited
to, 401(k) plans, 457 plans, employer-sponsored 403(b) plans, defined
benefit plans and other similar accounts, or plans whereby Fund shares are
held through omnibus accounts (either at the plan level or the level of
the plan administrator) may be permitted to make purchases of Class I
and Class R6 shares of the Fund, subject to meeting the respective
eligibility requirements for Class I and Class R6 shares);
|
|
• |
|
An investor who has
previously entered into a letter of intent with the Fund or William Blair
prior to March 31, 2011; |
|
• |
|
A participant in a
qualified defined contribution retirement plan that offers the Fund as an
investment option; or |
|
• |
|
A wrap fee program or
financial advisory firm charging asset-based fees with existing accounts
as of March 31, 2011 purchasing shares on behalf of new and existing
clients. |
You
may open a new Fund account or purchase Fund shares through an existing Fund
account if you are:
|
• |
|
A client of William
Blair; or |
|
• |
|
A Board member or
Officer of William Blair Funds, a Partner or employee of William Blair and
its affiliates, or a member of the immediate family of any of these
persons. |
Except
as otherwise noted, these restrictions apply to investments made directly with
William Blair and investments made through financial institutions and/or
intermediaries. Once an account is closed, additional investments will not be
accepted unless you are one of the investors listed above. Exchanges of
Class N, Class I and Class R6 shares into the Fund from other
Funds are not permitted unless the exchange is being made into an existing Fund
account. Investors may be required to demonstrate eligibility to purchase shares
of the Fund before an investment is accepted. Management reserves the right to
(i) make additional exceptions that, in its judgment, do not adversely
affect its ability to manage the Fund, (ii) reject any investment or refuse
any exception, including those detailed above, that it believes will adversely
affect its ability to manage the Fund, and (iii) close and re-open the Fund
to new or existing shareholders at any time.
BUYING,
SELLING AND EXCHANGING SHARES
The
information below relating to buying, selling and exchanging shares of the Funds
applies if you are transacting directly with the Funds. Shares of the Funds are
also available through certain financial intermediaries, such as a bank or a
broker-dealer (each, an “intermediary”). If you are investing through an
intermediary, you are not placing your orders directly with the Funds, and you
must follow the intermediary’s transaction procedures. Your intermediary may
impose different or additional conditions than the Funds on purchases,
redemptions and exchanges of Fund shares. These differences may include
different minimum initial (and subsequent) investment amounts, exchange
policies, fund choices, cut-off times for investment and other trading
restrictions. Your intermediary also may impose charges for its services in
addition to the fees charged by the Funds. You should consult with your
intermediary directly for information regarding its conditions and fees for
buying, selling or exchanging shares of the Funds. The Funds are not responsible
for the failure of your intermediary to carry out its responsibilities.
HOW TO BUY SHARES (By Mail, by Wire or by
Telephone)
Purchase Price. All Funds are sold at their
public offering price, which is the net asset value per share that is next
computed after receipt of your order in proper form by the Distributor, the
Transfer Agent or a designated agent thereof. (For more information, see
“Determination of Net Asset Value.”) If you fail to pay for your order, you will
be liable for any loss to a Fund and, if you are a current shareholder, the Fund
may redeem some or all of your shares to cover such loss.
137
Note: All purchases made by check should be in
U.S. dollars and made payable to William Blair Funds, or in the case of a
retirement account, the custodian or trustee of such account. Third-party checks
generally will not be accepted. When purchases are made by check or periodic
account investment, the Funds may delay sending redemption proceeds until they
determine that collected funds have been received for the purchase of such
shares, which may be up to 15 calendar days.
Purchase in Kind. You may, subject to the
approval of the Funds, purchase shares of the Funds with securities that are
eligible for purchase by the Funds (consistent with the Funds’ investment
process, goal and philosophy) and that have values that are readily
ascertainable in accordance with the Funds’ valuation policies. Call the Funds
at 1-800-742-7272 if you would like to purchase shares of the Funds with other
securities. Such purchases may result in the recognition of gain or loss for
federal income tax purposes on the securities transferred to the Funds.
Right to Reject Your Purchase Order. The Trust
is required to obtain, verify and record certain information regarding the
identity of shareholders. When opening a new account, the Trust will ask for
your name, address, taxpayer identification number, date of birth and other
information that identifies you. You may also be asked to show identifying
documents. Applications without this information may not be accepted and orders
may not be processed. The Trust reserves the right to place limits on
transactions in any account until the identity of the investor is verified;
refuse an investment in the Funds or involuntarily redeem an investor’s shares
and close an account in the event that an investor’s identity is not verified;
or suspend the payment of withdrawal proceeds if it is deemed necessary to
comply with anti-money laundering regulations. The Trust and its agents will not
be responsible for any loss resulting from an investor’s delay in providing all
required identifying information or from closing an account and redeeming an
investor’s shares when an investor’s identity cannot be verified.
The
Trust is required to comply with various federal anti-money laundering laws and
regulations. As a result, the Trust may be required to “freeze” a shareholder
account if the shareholder appears to be involved in suspicious activity or if
account information matches information on government lists of known terrorists
or other suspicious persons, or the Trust may be required to transfer the
account or account proceeds to a government agency. The Trust may also be
required to reject a purchase payment, block an investor’s account and
consequently refuse to implement requests for transfers, withdrawals, surrenders
or death benefits.
Short-Term and Excessive Trading. The Funds are
designed for long-term investors. All Funds discourage and do not accommodate
short-term or excessive trading. Such trading may present risks to other
shareholders in the Funds, including disruption of portfolio investment
strategies, with potential resulting harm to performance, and increased trading
costs or Fund expenses. Thus, such trading may negatively impact the Funds’ net
asset value and result in dilution to long-term shareholders. Short-term and
excessive trading in Fund shares can also negatively impact the Funds’ long-term
performance by requiring the Funds to maintain more assets in cash or to
liquidate holdings at a disadvantageous time. These risks may be more pronounced
for the Funds investing in securities that are susceptible to pricing arbitrage
(e.g., international securities, emerging markets securities and small cap
securities).
In
an effort to protect long-term shareholders, the Board of Trustees has adopted
policies and procedures that seek to deter short-term and excessive trading and
to detect such trading activity at levels that may be detrimental to the Funds.
The Funds reserve the right to reject or restrict any purchase order (including
exchanges) from any investor for any reason, including excessive, short-term or
other abusive trading practices that may disrupt portfolio management strategies
and harm Fund performance. The Funds also reserve the right to delay delivery of
redemption proceeds up to seven days or to honor certain redemptions with
securities, rather than cash.
In
making the determination to exercise these rights, the Funds may consider an
investor’s trading history in the Funds and accounts under common ownership or
control. The Funds seek to employ reasonable measures to detect short-term and
excessive trading at levels that may be detrimental to the Funds. Accordingly,
the Adviser uses certain materiality and volume thresholds to detect short-term
or excessive trading, but otherwise seeks to apply the policies uniformly to all
shareholders, as described in more detail below.
138
Some
Fund shares are held through omnibus account arrangements, whereby a
broker-dealer, investment adviser, retirement plan sponsor or other financial
intermediary maintains an omnibus account with a Fund for trading on behalf of
its customers. For such accounts, the Adviser generally seeks to monitor trading
activity at the omnibus level in an attempt to identify disruptive trades using
certain thresholds. However, shareholders seeking to engage in short-term or
excessive trading may use a variety of strategies to avoid detection and,
despite the efforts of the Funds and their agents to prevent short-term or
excessive trading, there is no guarantee that the Funds or their agents will be
able to identify such shareholders or curtail their trading practices. Also, the
ability of the Funds and their agents to detect and curtail short-term and
excessive trading practices may be limited by operational systems and
technological limitations. In addition, the Funds receive purchase, exchange and
redemption orders through financial intermediaries and cannot always know or
reasonably detect short-term or excessive trading that may be facilitated by
these intermediaries or by the use of omnibus account arrangements.
Under
agreements that the Funds have entered into with intermediaries, the Funds may
request transaction information from intermediaries at any time to determine
whether there has been short-term trading by the intermediaries’ customers. The
Funds will request that the intermediary provide individual account level detail
(or participant level detail in the case of retirement plans) to the Funds at
their request. If short-term trading is detected at the individual account or
participant level, the Funds will request that the intermediary a) continue to
monitor the individual or participant, b) issue the individual or participant a
warning, or c) ban the individual or participant from making further purchases
of Fund shares. An intermediary may apply its own short-term trading policies
and procedures, which may be more or less restrictive than the Funds’ policies
and procedures. There is no assurance that the Funds’ policies will be effective
in limiting and deterring short-term and excessive trading in all circumstances.
By Mail
Opening an Account—Class N shares and
Class I shares. To open a new account for Class N shares or
Class I shares of the Funds by mail, make out a check for the amount of
your investment, payable to “William Blair Funds.” Complete the account
application included with this Prospectus and mail the completed application and
the check to the Transfer Agent, SS&C GIDS, P.O. Box 219137, Kansas City,
Missouri 64121-9137.
Adding to an Account—Class N shares and
Class I shares. To purchase additional Class N shares or
Class I shares, make out a check for the amount of your investment, payable
to “William Blair Funds” and mail the check, together with a letter that
specifies the Fund name, the account number and the name(s) in which the account
is registered, to SS&C GIDS, P.O. Box 219137, Kansas City,
Missouri 64121-9137.
Opening or Adding to an Account—Class R6
shares/Institutional International Growth Fund. Opening a new account or
adding to an account for Class R6 shares or shares of the Institutional
International Growth Fund may only be done by wire. See “By Wire” below.
By Wire
Opening an Account—Class N shares and
Class I shares. First, call SS&C GIDS at 1-800-635-2886 (in
Massachusetts, 1-800-635-2840) for an account number. Then instruct your bank to
wire federal funds to:
State
Street Bank and Trust Co.
ABA
# 011000028
DDA
# 99029340
Attn:
Custody & Shareholder Services
One
Congress Street,
Suite
1
Boston,
Massachusetts 02114
139
Include
the name of the Fund in which you are investing, your assigned account number
and the name(s) in which the account is registered. Finally, complete the
account application, indicate the account number assigned to you by SS&C
GIDS and mail it to William Blair Funds, 150 North Riverside Plaza, Chicago,
Illinois 60606.
Adding to an Account—Class N shares and
Class I shares. To add to your account by wire, instruct your bank
to wire federal funds to:
State
Street Bank and Trust Co.
ABA
# 011000028
DDA
# 99029340
Attn:
Custody & Shareholder Services
State
Street Financial Center
One
Congress Street,
Suite
1
Boston,
Massachusetts 02114
In
your request, specify the name of the Fund in which you are investing, your
account number, and the name(s) in which the account is registered. To add to an
existing account by wire transfer of funds, you must have selected this option
on your account application.
Opening or Adding to an Account—Class R6
shares/Institutional International Growth Fund. First, call the
Distributor at 1-800-742-7272 for an account number. Then instruct your bank to
wire federal funds to:
State
Street Bank and Trust Co.
ABA
# 011000028
DDA
# 99029340
Attn:
Custody & Shareholder Services
State
Street Financial Center
One
Congress Street,
Suite
1
Boston,
Massachusetts 02114
Include
the name of the Fund in which you are investing, your assigned account number
and the name(s) in which the account is registered. Finally, complete the
account application, indicate the account number assigned to you by the
Distributor and mail it to the Distributor, William Blair & Company,
L.L.C., 150 North Riverside Plaza, Chicago, Illinois 60606.
By Telephone
Opening an Account. See “By Wire.”
Adding to an Account. Call SS&C GIDS at
1-800-635-2886 (in Massachusetts, 1-800-635-2840). You may then pay for your new
shares by wire or by mail, except for Class R6 shares and shares of the
Institutional International Growth Fund which may only be paid for by wire. To
add to an existing account by telephone, you must have selected this option on
your account application.
140
HOW TO SELL SHARES (By Mail, by Wire or by
Telephone)
You
can arrange to take money out of your account by selling (“redeeming”) some or
all of your shares. You may give instructions to redeem your shares by mail, by
wire or by telephone, as described below.
By Mail
To
redeem Class N shares, Class I shares, Class R6 shares or shares
of the Institutional International Growth Fund by mail, send a written
redemption request signed by all account owners to SS&C GIDS, P.O. Box
219137, Kansas City, Missouri 64121-9137.
Written
redemption requests must include:
|
— |
a
letter that contains your name, your assigned account number, the Fund’s
name and the dollar amount or number of shares to be redeemed; and
|
|
— |
any
other necessary documents, such as an inheritance tax consent or evidence
of authority (for example, letters testamentary), dated not more than 60
days prior to receipt thereof by SS&C GIDS or the Distributor.
|
By Wire
To
redeem some or all of your shares by wire, you may contact SS&C GIDS by mail
or telephone, as explained herein. To redeem by
wire, you must have elected this option on your account application and
attached to the application, for Class N shares and Class I shares, a
voided, unsigned check or deposit slip for your bank account, and for
Class R6 shares or shares of the Institutional International Growth Fund, a
corporate resolution authorizing those able to act on your behalf.
By Telephone
To
redeem shares by telephone, you must have elected this option on your account
application. Contact SS&C GIDS at 1-800-635-2886 (in Massachusetts,
1-800-635-2840).
Note: Telephone redemption requests should NOT
be directed to the Trust or to the Distributor.
Signature Guarantees. A signature guarantee may
be required to redeem Class N shares and Class I shares in certain
instances. A signature guarantee is not required for redemptions of
Class R6 shares or shares of the Institutional International Growth Fund.
Signature guarantees must be obtained from a bank that is a member of the FDIC,
from a brokerage firm that is a member of FINRA or an exchange, or from an
eligible guarantor who is a member of, or a participant in, a signature
guarantee program. Your redemption request with respect to Class N shares
or Class I shares must include a signature guarantee if any of the
following situations apply:
|
— |
You
wish to redeem shares having a value of $75,000 or more in a single
transaction; |
|
— |
Your
account registration has changed; or |
|
— |
You
want a check in the amount of your redemption to be mailed to a different
address from the one on your account application (address of record).
|
Signature
guarantees, if required, must appear on the written redemption request and on
any endorsed stock certificate or stock power.
Redemption Price. The redemption price is the
net asset value next calculated after receipt of your redemption request in
proper order by the Distributor, Transfer Agent or a designated agent thereof.
The redemption price that you receive for your shares may be more or less than
the amount that you originally paid for them.
141
Payment for Redeemed Shares. Payment normally
will be mailed to you at the address of record for your account by the third
business day after receipt by SS&C GIDS of a redemption request and any
other required documentation and after any checks in payment for your shares
have cleared.
Under
normal conditions, each Fund typically expects to meet redemption requests
through the use of the Fund’s holdings of cash or cash equivalents or by selling
other Fund assets. A redemption in kind may be used as discussed below.
Delayed Proceeds. The Trust reserves the right
to delay delivery of your redemption proceeds—up to seven days—or to honor
certain redemptions with securities, rather than cash, as described in the next
section.
Redemptions In Kind. The Trust reserves the
right to make redemption payments in whole or in part in securities or other
financial assets, valued for this purpose as they are valued in computing the
net asset value for the Funds’ shares. In making a redemption payment “in kind,”
a Fund will typically distribute a pro rata portion of all securities or other
financial assets, subject to certain exclusions approved by the Board of
Trustees. Shareholders will receive cash for the portion of excluded securities
and a Fund’s holdings of cash and receivables.
Shareholders
receiving securities or other financial assets may realize a gain or loss for
federal income tax purposes as a result of the redemption, and will incur any
costs of sale, as well as the associated inconveniences. Notwithstanding the
above, each Fund is obligated to redeem shares solely in cash up to the lesser
of $250,000 or 1.00% of the net asset value of the Fund during any 90-day period
for any one shareholder of record.
Automatic Redemptions. The Trust reserves the
right to redeem your shares in any account that, following a redemption, is
below a specified minimum amount. Currently, the minimum for Class N shares
is $2,500 per account for regular accounts and IRAs, for Class I shares is
$500,000 per account for regular accounts and IRAs, for Class R6 shares is
$1 million, and $5 million for shares of the Institutional International
Growth Fund, unless the reduction in value is due solely to market depreciation.
Before the redemption is processed, you will be notified that the value of your
account has fallen below the minimum and allowed to make an additional
investment.
HOW TO EXCHANGE SHARES (By Mail or by
Telephone)
Subject
to the following limitations, you may exchange Class N, Class I or
Class R6 shares of a Fund for the same class of shares of another William
Blair Fund at their relative net asset values so long as the shares to be
acquired are available for sale in your state of residence and the other William
Blair Fund is open to new investors. Shareholders who purchase Class I
shares of the Emerging Markets Leaders Fund solely because they have a brokerage
account with William Blair & Company, L.L.C. and held Class I
shares of the Fund on May 1, 2010 may only exchange their Class I
shares of the Emerging Markets Leaders Fund for Class N shares of another
Fund. Exchanges into a closed Fund are precluded unless the shareholder already
has an open account in that Fund. Exchanges will be effected by redeeming your
shares and purchasing shares of the other William Blair Fund(s) requested.
Shares of a Fund with a value in excess of $1 million acquired by exchange
from another Fund may not be exchanged thereafter until they have been owned for
15 days (the “15 Day Hold Policy”). Each Fund reserves the right to reject any
exchange order for any reason, including excessive, short-term (market-timing)
or other abusive trading practices that may disrupt portfolio management.
Exchanges will result in the recognition for federal income tax purposes of gain
or loss on the shares exchanged. You should obtain and carefully read the
Prospectus of the William Blair Fund(s) you want to exchange into prior to
making an exchange. You may obtain a Prospectus by calling 1-800-635-2886 or by
going to the Trust’s website at williamblairfunds.com.
The
Fund will consider requests by holders of Class N shares to convert such
shares to Class I shares on a case-by-case basis, provided eligibility
requirements and relevant minimums are met. Class I shares of a Fund may be
142
exchanged
for Class R6 shares of the Fund provided that your account meets the
eligibility requirements for Class R6 shares and you meet the Class R6
investment minimums discussed above.
By Mail
You
may request an exchange of your shares by writing a letter that specifies the
Fund name, the account number and the name(s) in which the account is
registered, to William Blair Funds, Attention: Exchange Department, P.O. Box
219137, Kansas City, Missouri 64121-9137.
By Telephone
You
may also exchange your shares by telephone by completing the appropriate section
on your account application. Once your telephone authorization is on file,
SS&C GIDS will honor your requests to exchange shares by telephone at
1-800-635-2886 (in Massachusetts, 1-800-635-2840).
Neither
the Trust nor SS&C GIDS will be liable for any loss, expense or cost arising
out of any telephone request pursuant to the telephone exchange privilege,
including any fraudulent or unauthorized request, and you will bear the risk of
loss, so long as the Trust or SS&C GIDS reasonably believes, based upon
reasonable verification procedures, that the telephonic instructions are
genuine. The verification procedures include (1) recording instructions,
(2) requiring certain identifying information before acting upon
instructions and (3) sending written confirmations.
DIVIDENDS
AND DISTRIBUTIONS
Income Dividends. The Funds may earn dividends
from stocks and interest from bond, money market and other investments, as well
as net short-term capital gains from sales of securities, all of which are
passed through to shareholders as income dividends as long as expenses do not
exceed income.
Capital Gain Distributions. The Funds may
realize capital gains whenever they sell securities for a higher price than they
paid for them, which then will generally be passed through to shareholders as
capital gain distributions to the extent that a Fund’s net long-term capital
gains exceed the sum of its net short-term capital losses for such year and any
capital loss carryovers available from prior years.
As
a shareholder, you are entitled to your portion of a Fund’s net income and gains
on its investments. Each Fund passes its earnings along to you as dividends and
distributions. Each Fund’s policy is to distribute substantially all net
investment income, if any, and all realized net capital gain, if any. All
distributions of income and capital gain and any return of capital have the
effect of immediately thereafter decreasing net asset value per share. Income
dividends and capital gain distributions will be automatically reinvested in
additional shares at net asset value on the reinvestment date, unless you
specifically request otherwise (see “Shareholder Services and Account
Policies—Dividend Options”). Cash payments are made by the Dividend Paying Agent
shortly following the reinvestment date.
When
Dividends are Paid
|
— |
For
the Growth Fund, Large Cap Growth Fund, Mid Cap Value Fund, Small-Mid Cap
Core Fund, Small-Mid Cap Growth Fund, Small-Mid Cap Value Fund, Small Cap
Growth Fund, Small Cap Value Fund, Global Leaders Fund, International
Leaders Fund, International Growth Fund, Institutional International
Growth Fund, International Small Cap Growth Fund, Emerging Markets Leaders
Fund, Emerging Markets Growth Fund, Emerging Markets ex China Growth Fund,
Emerging Markets Small Cap Growth Fund and China Growth Fund, all income
dividends, if any, and capital gain distributions, if any, generally will
be paid annually in December and/or January.
|
143
|
— |
For
the Emerging Markets Debt Fund, the Fund’s net investment income will be
declared at the close of a regular trading day on the New York Stock
Exchange, which is generally 3:00 p.m., Central time, on each day that the
Fund is open for business as a dividend to shareholders who were of record
prior to the declaration, and will be paid to shareholders monthly.
Capital gain distributions, if any, generally will be declared annually
and paid annually in December and/or January. |
The
Funds may vary these dividend practices at any time. Income dividends and any
capital gain distributions made by the Funds will vary from year to year.
Dividends and distributions may be subject to withholding, as required by the
Internal Revenue Service (the “IRS”) (see “Your Account—Federal Income Taxes”).
FEDERAL
INCOME TAXES
As
with any investment, you should consider how your investment in a Fund will be
taxed. If your account is not a tax-advantaged account, the federal income tax
implications of your investment in a Fund include the following:
Taxes on Distributions. Each Fund’s
distributions from current and accumulated earnings and profits are subject to
federal income tax and may also be subject to state or local taxes.
Distributions may be taxable at different tax rates depending upon the type of
security and the length of time the Fund holds the security generating the
income or gain that is distributed. Your distributions are generally taxable
when they are paid, whether you take them in cash or reinvest them in additional
shares. However, dividends declared in October, November or December to
shareholders of record as of a date in one of those months and paid before the
following February 1 are treated as having been paid on December 31 of
the calendar year declared for federal income tax purposes. After the close of
each calendar year, the Funds will inform you of the amount and nature of
distributions paid.
Under
the federal income tax laws, net investment income, including interest and
dividends (other than “qualified dividend income”), and net short-term capital
gains are taxed as ordinary income. Distributions of qualified dividend income
will generally be taxed to individuals and other non-corporate shareholders at
rates applicable to long-term capital gains, provided the Fund and the
shareholder each satisfy certain holding period and other requirements. Net
capital gain distributions are taxed at long-term capital gain rates regardless
of how long you have held your shares. It is anticipated that a portion of the
ordinary income dividends for the Growth Fund, Large Cap Growth Fund, Mid Cap
Value Fund, Small-Mid Cap Core Fund, Small-Mid Cap Growth Fund, Small‑Mid Cap
Value Fund, Small Cap Growth Fund and Small Cap Value Fund may be eligible for
the dividends-received deduction available to corporate shareholders and for
treatment as qualified dividend income available to individual and other
non-corporate shareholders. A portion of the dividends of the Global Leaders
Fund, International Leaders Fund, International Growth Fund, Institutional
International Growth Fund, International Small Cap Growth Fund, Emerging Markets
Leaders Fund, Emerging Markets Growth Fund, Emerging Markets ex China Growth
Fund, Emerging Markets Small Cap Growth Fund and Emerging Markets Debt Fund may
be eligible for treatment as qualified dividend income.
Taxes on Transactions. Redemptions of Fund
shares and exchanges for shares of other William Blair Funds are generally
treated as a sale of such shares subject to federal income taxation and possibly
state and local taxation. If the shares are held as a capital asset, then you
will recognize, subject to the discussion below, a capital gain or loss measured
by the difference between your basis in your shares and the price that you
receive when you sell (or exchange) such shares. The capital gain or loss upon a
sale, exchange or redemption of Fund shares will generally be a short-term
capital gain or loss if such shares were held for one year or less, and will be
a long-term capital gain or loss if such shares were held for more than one
year. As of the date of this Prospectus, long-term capital gains are generally
taxable to individuals and other non-corporate shareholders at a maximum federal
income tax rate of 20%. Any loss recognized on the redemption of shares held six
months or less, however, will be treated as a long-term capital loss to the
extent you have received any long-term capital gain dividends on such shares. If
you realize a loss on the redemption or exchange of Fund shares and acquire
within
144
30
days before or after such redemption or exchange shares of the same Fund
(including through reinvestment of dividends) or substantially identical stock
or securities, the two transactions may be subject to the “wash sale” rules of
the Code resulting in a postponement of the recognition of such loss for federal
income tax purposes. Capital losses may be subject to limitations on their use
by a shareholder.
As
of the date of the Prospectus, an additional 3.8% Medicare contribution tax is
imposed on certain net investment income (including income dividends and capital
gain distributions received from a Fund and net gains from redemptions or other
taxable dispositions of Fund shares) of U.S. individuals, estates and trusts to
the extent that such person’s “modified adjusted gross income” (in the case of
an individual) or “adjusted gross income” (in the case of an estate or trust)
exceeds a threshold amount.
Effect of Foreign Taxes. Investment income
received from sources within foreign countries may be subject to foreign income
taxes and other taxes, which generally will reduce a Fund’s distributions.
However, the United States has entered into tax treaties with many foreign
countries that entitle certain investors to a reduced rate of tax or to certain
exemptions from tax. Accordingly, the Global Leaders Fund, International Leaders
Fund, International Growth Fund, Institutional International Growth Fund,
International Small Cap Growth Fund, Emerging Markets Leaders Fund, Emerging
Markets Growth Fund, Emerging Markets ex China Growth Fund, Emerging Markets
Small Cap Growth Fund and Emerging Markets Debt Fund will attempt to operate so
as to qualify for such reduced tax rates or tax exemptions whenever practicable.
Additionally, each such Fund may each qualify for and may each elect to have
foreign tax credits “passed through” to its shareholders. In such event,
shareholders will be required to treat as part of the amounts distributed to
them their pro rata portion of such taxes and may claim a federal income tax
credit or a deduction for such taxes, subject to certain holding period and
other limitations. No deduction for foreign taxes may be claimed by a
shareholder who does not itemize deductions on his or her federal income tax
return.
“Buying a Dividend.” If you buy shares before a
Fund deducts a distribution from its net asset value, you will pay the full
price for the shares and then receive a portion of the price back in the form of
a distribution, which may be subject to federal income tax as described above.
In addition, a Fund’s share price may, at any time, reflect undistributed
capital gains or income and unrealized appreciation, which may result in future
taxable distributions. Such distributions can occur even in a year when a Fund
has a negative return. See “Your Account—Dividends and Distributions” for
payment schedules and call the Distributor if you have further questions.
Tax Withholding. The Funds may be required to
withhold U.S. federal income tax currently at a rate of 24% on all distributions
and redemption proceeds payable to shareholders who fail to provide their
correct taxpayer identification number, fail to make certain required
certifications or who have been notified (or when the Fund is notified) by the
IRS that they are subject to backup withholding.
The
foregoing is only intended as a brief summary of certain federal income tax
issues relating to investment in a Fund by shareholders subject to federal
income tax. Shareholders should consult their tax adviser about the application
of the provisions of the tax laws, including state and local tax laws, in light
of their particular situation before investing in a Fund.
For
a more detailed discussion of federal income taxes, see the Statement of
Additional Information.
145
SHAREHOLDER
SERVICES AND ACCOUNT POLICIES
The
Funds provide a variety of services to help you manage your account. If you are
investing through a financial intermediary, you may not have access to all of
these services. You should consult with your intermediary directly to determine
what services are available to you. Class R6 shares and the Institutional
International Growth Fund may not be available through your financial
intermediary.
Dividend Options. You may choose to have your
distributions reinvested in additional shares automatically or paid in cash by
making the appropriate election on your account application. You may change your
election at any time by providing written notice to SS&C GIDS. Dividends and
distributions are treated the same for federal income tax purposes whether
reinvested in additional shares or received in cash.
1.
Automatic Dividend Reinvestment Plan. The
Funds automatically reinvest all income dividends and capital gain distributions
in additional shares at net asset value on the reinvestment date. (For more
information, see “Your Account—Dividends and Distributions.”)
2.
Cash-Dividend Plan. You may choose to
have all of your income dividends paid in cash and/or have your capital gain
distributions paid in cash. Any distributions you do not elect to have paid in
cash will be reinvested automatically in additional shares at net asset value.
3.
Automatic Deposit of Dividends. You may
elect to have all income dividends and capital gain distributions automatically
deposited in a previously established bank account.
Automatic Investment Plan. On your account
application for Class N shares or Class I shares of a Fund, you may
authorize SS&C GIDS to automatically withdraw an amount of money (minimum
$250) from your bank account on the fifth or twentieth day of each month. This
amount will be invested in additional shares. You may change your election at
any time by providing written notice to SS&C GIDS.
Systematic Withdrawal Plan. You may establish
this plan with Class N shares or Class I shares presently held or
through a new investment, which should be at least $2,500 for Class N
shares and $500,000 for Class I shares. Under this plan, you specify a
dollar amount to be paid monthly, quarterly or annually. Shares corresponding to
the specified dollar amount are automatically redeemed from your account on the
fifth business day preceding the end of the month, quarter or year. While this
plan is in effect, all income dividends and capital gain distributions on shares
in your account will be reinvested at net asset value in additional shares.
There is no charge for withdrawals, but the minimum withdrawal is $250 per
month. Depending upon the size of payments requested, and fluctuations in the
net asset value of the shares redeemed, redemptions under this plan may reduce
or even exhaust your account.
Retirement Plans and Other Plan Accounts. The
Trust may accept investments from a variety of qualified retirement plans and
other tax-advantaged accounts, including employee benefit plans, Individual
Retirement Accounts (“IRAs”), Roth IRAs, Simplified Employee Pension Plan IRAs
(“SEP IRAs”), Savings Incentive Match Plan for Employees IRAs (“SIMPLE IRAs”),
Health Savings Accounts, Archer Medical Savings Accounts, Coverdell Education
Savings Accounts (formerly known as education IRAs) and Solo 401(k) Plans
(collectively, “Retirement Plan and Other Plan Accounts”). Additional
information concerning Retirement Plans and Other Accounts is available from the
Trust.
For
Class N shares, the minimum initial investment in a Retirement Plan and
Other Plan Account generally is $2,500 and the minimum subsequent investment
generally is $1,000. For Class I shares, there is no minimum initial
investment for a Retirement Plan and Other Plan Account and there is no minimum
for subsequent investments. Shareholders who open Retirement Plan and Other Plan
Accounts may be charged additional fees by the custodian for the plan. With
regard to Retirement Plan and Other Plan Accounts:
|
— |
participation
is voluntary; |
|
— |
you
may terminate or change a plan at any time without penalty or charge from
the Trust; |
146
|
— |
the
Funds may pay additional expenses incurred in connection with such plans;
|
|
— |
on
your account application, you may select the account type in which to
invest; |
|
— |
additional
forms and further information may be obtained by writing or calling the
Trust; |
|
— |
the
Trust reserves the right to change the minimum amounts for initial and
subsequent investments or to terminate any of the plans;
|
|
— |
the
Trust reserves the right to waive investment minimums at the discretion of
the Distributor; and |
|
— |
the
Trust requires a copy of the trust agreement when shares are to be held in
trust. |
Written Confirmations. Each purchase, exchange
or redemption transaction is confirmed in writing to the address of record by
giving details of the purchase or redemption.
Transfer of Shares. Fund shares may be
transferred by a written request addressed to the Trust and delivered to
SS&C GIDS, giving the name and social security or taxpayer identification
number of the transferee and accompanied by the same signature guarantees, if
applicable, and documents as would be required for a redemption, together with
specimen signatures of all transferees.
Suspension of Offering or Rejection of Purchase
Orders. The Trust reserves the right to withdraw all or any part of the
offering made by this Prospectus, and/or the Trust or the Distributor may reject
purchase orders from an investor or an intermediary. From time to time, the
Trust may suspend the offering of shares of a Fund to new investors. During the
period of such suspension, persons who are already shareholders of a Fund may be
permitted to continue to purchase additional shares of the Fund, to have
dividends reinvested and to make redemptions. In addition, a Fund may be
liquidated and terminated at any time without shareholder approval. Such a
liquidation could have negative tax consequences for shareholders and will cause
shareholders to incur expenses of liquidation.
Consultation With a Professional Tax Adviser is
Recommended, both because of the complexity of federal tax laws and
because various tax penalties are imposed for excess contributions to, and late
or premature distributions from, IRAs or other qualified retirement plans.
Termination of a plan shortly after its adoption may have adverse tax
consequences.
Shareholder Rights. All shares of each
Fund have equal rights with respect to dividends, assets and liquidation of a
Fund and equal, noncumulative voting rights. Noncumulative voting rights allow
the holder or holders of a majority of shares, voting together for the election
of Trustees, to elect all the Trustees. All shares of the William Blair Funds
will be voted in the aggregate, except when a separate vote by a William Blair
Fund is required under the 1940 Act. Shares are fully paid and nonassessable
when issued, are transferable without restriction, and have no preemptive or
conversion rights. Under Delaware law, the Trust is not required to hold
shareholder meetings on an annual basis. As required by law, the Funds will,
however, hold shareholder meetings when a sufficient number of shareholders
request a meeting, or as deemed desirable by the Board of Trustees, for such
purposes as electing or removing Trustees, changing fundamental policies or
approving a material amendment to the Management Agreement. (For additional
information about shareholder voting rights, see the Statement of Additional
Information.)
Householding. In order to reduce the amount of
mail you receive and to help reduce Fund expenses, the Trust generally sends a
single copy of any shareholder report and Prospectus to each household. If you
do not want the mailing of these documents to be combined with those for other
members of your household, please call 1‑800‑742‑7272.
Additional Information on Use of
Intermediaries. If you purchase, redeem, or exchange shares through an
intermediary, that intermediary may impose charges for its services in addition
to the fees charged by the Fund.
147
These
charges could reduce your yield or return. In addition, when you place orders
with an intermediary, you are not placing your orders directly with the Fund,
and you must follow the intermediary’s transaction procedures. Your intermediary
may impose different or additional conditions than the Fund on purchases,
redemptions and exchanges of Fund shares. These differences may include
different minimum initial (and subsequent) investment amounts, exchange
policies, fund choices, cut-off times for investment and other trading
restrictions. You should consult your intermediary directly for information
regarding its conditions and fees. The Funds are not responsible for the failure
of your intermediary to carry out its responsibilities.
148
DETERMINATION
OF NET ASSET VALUE
When
and How Net Asset Value (“NAV”) is Determined
A
Fund’s net asset value is the value of its total assets minus its liabilities. A
Fund’s net asset value per share is determined by dividing the Fund’s net asset
value by the number of Fund shares outstanding.
The
net asset value per share shall be determined as of the close of regular trading
on the New York Stock Exchange (“NYSE”), which is generally 3:00 p.m., Central
time (4:00 p.m., Eastern time), on each day when the NYSE is open. A Fund does
not price its shares on days when the NYSE is closed for trading.
Quotations
of foreign securities in foreign currencies are converted into the United States
dollar equivalents at the prevailing market rates as computed by State Street
Bank and Trust Company, the Funds’ custodian. Trading in securities on exchanges
and over-the-counter markets in Europe and the Far East is normally completed at
various times prior to 3:00 p.m., Central time, the current closing time of the
NYSE. Trading on foreign exchanges may not take place on every day that the NYSE
is open. Conversely, trading in various foreign markets may take place on days
when the NYSE is not open and on other days when net asset value is not
calculated. Consequently, the value of the net assets held by the Global Leaders
Fund, the International Leaders Fund, the International Growth Fund, the
Institutional International Growth Fund, the International Small Cap Growth
Fund, the Emerging Markets Leaders Fund, the Emerging Markets Growth Fund, the
Emerging Markets ex China Growth Fund, the Emerging Markets Small Cap Growth
Fund, the China Growth Fund, and the Emerging Markets Debt Fund may be
significantly affected on days when shares are not available for purchase or
redemption.
How
the Value of Fund Securities is Determined
U.S. Equity Securities. The value of U.S.
equity securities, including exchange-traded funds, is determined by valuing
securities traded on national securities markets or in the over-the-counter
markets at the last sale price or, if applicable, the official closing price or,
in the absence of a recent sale on the date of determination, at the mean
between the last reported bid and ask prices. Investments in other investment
funds which are not traded on an exchange are valued at their respective net
asset value per share.
Foreign Equity Securities. The value of foreign
equity securities is generally determined based upon the last sale price on the
foreign exchange or market on which it is primarily traded and in the currency
of that market as of the close of the appropriate exchange or, if there have
been no sales during that day, at the mean between the last reported bid and ask
prices. The Adviser, as the Valuation Designee (as described below), has
determined that the passage of time between when the foreign exchanges or
markets close and when a Fund computes its net asset value could cause the value
of foreign equity securities to no longer be representative or accurate and, as
a result, may necessitate that such securities be fair valued. Accordingly, for
foreign equity securities, a Fund may use an independent pricing service to fair
value price the security as of the close of regular trading on the NYSE in the
event of market movement occurring after the close of regular trading on the
foreign exchange or market where the security is primarily traded. As a result,
a Fund’s value for a security may be different from the last sale price (or the
mean between the last reported bid and ask prices).
U.S. and Foreign Fixed Income Securities. Fixed
income securities are generally valued using evaluated prices provided by an
independent pricing service or, if a price is not available, the security is
valued at the last reported bid price or mean between the last reported bid and
the last reported ask (depending on the type of security), in each case obtained
by an independent pricing service. The evaluated prices are formed using various
market inputs that the pricing service believes accurately represent the market
value of a security at a particular point in time. The pricing service
determines evaluated prices for fixed income securities using inputs including,
but not limited to, recent transaction prices, dealer quotes, transaction prices
for securities with similar characteristics, collateral characteristics, credit
quality, payment history, liquidity and market conditions. Repurchase agreements
and certain privately placed debt securities are valued at cost, which
approximates fair value.
149
Derivative Instruments. Option contracts on
securities, currencies and other financial instruments traded on one or more
exchanges are valued at their most recent sale price on the exchange on which
they are traded most extensively. Option contracts on foreign indices are valued
at the settlement price. Futures contracts (and options and swaps thereon) are
valued at the most recent settlement price on the exchange on which they are
traded most extensively. Forward foreign currency contracts are valued on the
basis of the value of the underlying currencies at the prevailing currency
exchange rate as supplied by an independent pricing service.
Over-the-Counter
(“OTC”) swap contracts are valued by an independent pricing service. Depending
on the product and the terms of the transaction, the independent pricing service
may use a series of techniques, including simulation pricing models. The pricing
models use inputs that are observed from actively quoted markets such as issuer
details, indices, spreads, interest rates, yield curves, dividends and exchange
rates.
Centrally
cleared swaps listed or settled on a multilateral or trade facility platform,
such as a registered exchange, are valued at the daily settlement price
determined by the respective exchange. For centrally cleared credit default
swaps the clearing facility requires its members to provide actionable price
levels across complete term structures. These levels along with external
third-party prices are used to produce daily settlement prices.
Other Valuation Factors. Securities, and other
assets, for which a market quotation is not available or is deemed unreliable
(e.g., securities affected by unusual or extraordinary events, such as natural
disasters or securities affected by market or economic events, such as
bankruptcy filings), or the value of which is affected by a significant
valuation event, are valued at a fair value. The Board has appointed the Adviser
as the Funds’ valuation designee under Rule 2a-5 of the 1940 Act (“Valuation
Designee”) to perform all fair valuations of the Funds’ portfolio investments,
subject to the Board’s oversight. As the Valuation Designee, the Adviser has
established procedures for its fair valuation of the Funds’ portfolio
investments. These procedures address, among other things, determining when
market quotations are not readily available or reliable and the methodologies to
be used for determining the fair value of investments, as well as the use and
oversight of third-party pricing services for fair valuation. The value of fair
valued securities may be different from the last sale price (or the mean between
the last reported bid and ask prices), and there is no guarantee that a fair
valued security will be sold at the price at which a Fund is carrying the
security.
150
INVESTMENT
GLOSSARY
The following glossary explains some of the types of
securities in which the Funds may invest, investment techniques they may employ,
and some of the related risks. For more information, please see other sections
of this Prospectus, including the Summary, Additional Information Regarding
Investment Objectives and Strategies, and Principal Risks, as well as the
Statement of Additional Information.
Collateralized Obligations. Mortgage-Backed
Securities. Mortgage-backed securities are securities that directly or
indirectly represent a participation in, or are secured by and payable from,
mortgage loans secured by real property. There currently are three basic types
of mortgage-backed securities: (1) those issued or guaranteed by the U.S.
Government or one of its agencies or instrumentalities, such as GNMA (Government
National Mortgage Association), FNMA (Federal National Mortgage Association) and
FHLMC (Federal Home Loan Mortgage Corporation); (2) those issued by private
issuers that represent an interest in or are collateralized by mortgage-backed
securities issued or guaranteed by the U.S. Government or one of its agencies or
instrumentalities; and (3) those issued by private issuers that represent
an interest in or are collateralized by whole mortgage loans or mortgage-backed
securities without a government guarantee but that usually have some form of
private credit enhancement.
The
yield characteristics of mortgage-backed securities differ from traditional debt
securities. Among the major differences are that interest and principal payments
are made more frequently, usually monthly, and that principal may be prepaid at
any time because the underlying mortgage loans generally may be prepaid at any
time. The rate of pre-payments on underlying mortgages will affect the price and
volatility of a mortgage-backed security, and may have the effect of shortening
or extending the effective duration of the mortgage-backed security relative to
what was anticipated at the time of purchase. To the extent that unanticipated
rates of pre-payment on underlying mortgages increase the effective duration of
a mortgage-backed security, the volatility of such mortgage-backed security can
be expected to increase.
Asset-Backed Securities. Asset-backed
securities are similar in structure to mortgage-backed securities but represent
interests in pools of loans, leases or other receivables in place of mortgages.
Asset-backed securities are primarily issued by non-government entities.
Corporate Debt Securities. Corporate debt
securities are fixed income securities issued by businesses. Notes, bonds,
debentures and commercial paper are the most prevalent types of corporate debt
securities. The Emerging Markets Debt Fund may also purchase interests in bank
loans made to companies. The credit risks of corporate debt securities vary
widely among issuers. In addition, the credit risk of an issuer’s debt security
may vary based on its priority for repayment. For example, higher ranking
(senior) debt securities have a higher priority than lower ranking
(subordinated) securities. This means that the issuer might not make payments on
subordinated securities while continuing to make payments on senior securities.
In addition, in the event of bankruptcy, holders of senior securities may
receive amounts otherwise payable to the holders of subordinated securities.
Some subordinated securities, such as trust preferred and capital securities
notes, also permit the issuer to defer payments under certain circumstances. For
example, insurance companies issue securities known as surplus notes that permit
the insurance company to defer any payment that would reduce its capital below
regulatory requirements.
Depositary Receipts. American Depositary
Receipts (“ADRs”) are dollar-denominated securities issued by a U.S. bank or
trust company that represent, and may be converted into, the underlying foreign
security. European Depositary Receipts (“EDRs”) and Global Depositary Receipts
(“GDRs”) represent a similar securities arrangement but are issued by European
banks or other depositories, respectively. ADRs, EDRs and GDRs may be
denominated in a currency different from the underlying securities into which
they may be converted. Typically, ADRs, in registered form, are designed for
issuance in U.S. securities markets, and EDRs and GDRs, in bearer form, are
designed for issuance in European securities markets. Investments in depositary
receipts entail risks similar to direct investments in foreign securities. These
risks are detailed in the “Principal Risks” section above and in the Statement
of Additional Information.
151
Derivatives. As described in the “Additional
Information Regarding Investment Objectives and Strategies” section of this
Prospectus, the Global Leaders Fund, International Leaders Fund, International
Growth Fund, Institutional International Growth Fund, International Small Cap
Growth Fund, Emerging Markets Leaders Fund, Emerging Markets Growth Fund,
Emerging Markets ex China Growth Fund, Emerging Markets Small Cap Growth Fund,
China Growth Fund and Emerging Markets Debt Fund may use certain types of
derivatives for hedging or risk management purposes as well as to equitize cash
in situations involving large cash inflows or anticipated large redemptions.
Derivatives are financial contracts whose value depends on, or is derived from,
the value of an underlying asset, reference rate or index. Derivatives include
options, futures, forward contracts, swaps and related products.
Options. An option is a contract in
which the “holder” (the buyer) pays a certain amount (“premium”) to the “writer”
(the seller) to obtain the right, but not the obligation, to buy from the writer
(in a “call”) or sell to the writer (in a “put”) a specific asset at an agreed
upon price at or before a certain time. The holder pays the premium at inception
and has no further financial obligation. The holder of an option-based
derivative generally will benefit from favorable movements in the price of the
underlying asset but is not exposed to corresponding losses due to adverse
movements in the value of the underlying asset. The writer of an option-based
derivative generally will receive fees or premiums but generally is exposed to
losses due to changes in the value of the underlying asset.
Futures. A futures contract provides
for the future sale by one party and purchase by another party of a specified
amount of a specific financial instrument, index, security or commodity for a
specified price at a designated date, time and place. An index futures contract
is an agreement pursuant to which the parties agree to take or make delivery of
an amount of cash equal to the difference between the value of the index at the
close of the last trading day of the contract and the price at which the index
futures contract was originally written. Transaction costs are incurred when a
futures contract is bought or sold and margin deposits must be maintained. A
futures contract may be satisfied by delivery or purchase, as the case may be,
of the instrument, security or commodity or by payment of the change in the cash
value of the index. More commonly, futures contracts are closed out prior to
delivery by entering into an offsetting transaction in a matching futures
contract. If the offsetting purchase price is less than the original sale price,
a Fund realizes a gain; if it is more, a Fund realizes a loss. Conversely, if
the offsetting sale price is more than the original purchase price, a Fund
realizes a gain; if it is less, a Fund realizes a loss. The transaction costs
must also be included in these calculations. There can be no assurance, however,
that a Fund will be able to enter into an offsetting transaction with respect to
a particular futures contract at a particular time.
Forward Foreign Currency Contracts. A
forward foreign currency contract is an agreement to purchase or sell a specific
currency at a specified future date and price agreed to by the parties at the
time of entering into the contract. A forward currency contract is either
settled by physical delivery of the commodity or tangible asset to an
agreed-upon location at a future date, rolled forward into a new forward
contract or, in the case of a non-deliverable forward, by a cash payment at
maturity. A Fund may use forward foreign currency contracts to fix the value of
certain securities it has agreed to buy or sell. For example, when a Fund enters
into a contract to purchase or sell securities denominated in a particular
foreign currency, the Fund could effectively fix the maximum cost of those
securities by purchasing or selling a forward currency contract, for a fixed
value of another currency, in the amount of foreign currency involved in the
underlying transaction. A Fund may also use forward foreign currency contracts
to hedge the value, in U.S. dollars, of securities it currently owns. For
example, if a Fund held securities denominated in a foreign currency and
anticipated a substantial decline (or increase) in the value of that currency
against the U.S. dollar, the Fund may enter into a forward currency contract to
sell (or purchase), for a fixed amount of U.S. dollars, the amount of foreign
currency approximating the value of all or a portion of the securities held
which are denominated in such foreign currency. Although forward foreign
currency contracts minimize the risk of loss resulting from a decline in the
value of the hedged currency, they also limit the potential for gain resulting
from an increase in the value of the hedged currency. The benefits of forward
foreign currency contracts to a Fund will depend on the ability of the Adviser
to accurately predict future currency exchange rates.
152
Swaps. A swap is a customized,
privately negotiated agreement that obligates two parties to exchange a series
of cash flows at specified intervals (payment dates) based upon or calculated by
reference to changes in specified process or rates (interest rates in the case
of interest rate swaps, currency exchange rates in the case of currency swaps)
for a specified amount of an underlying asset (the “notional” principal amount).
Cleared swaps are transacted through futures commission merchants that are
members of central clearinghouses with the clearinghouse serving as a central
counterparty. The swaps market was largely unregulated prior to the enactment of
the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank
Act”). Pursuant to rules promulgated under the Dodd-Frank Act, central clearing
of swap agreements is currently required for certain market participants trading
certain instruments, and central clearing for additional instruments is expected
to be implemented by regulators until the majority of the swaps market is
ultimately subject to central clearing.
Credit Default Swaps. A credit default
swap is a contract between a buyer and a seller of protection against a
pre-defined credit event (e.g., a ratings downgrade or default) on an underlying
reference obligation, which may be a single debt instrument or baskets or
indices of securities. Credit default swaps are used as a means of “buying”
credit protection (i.e., attempting to
mitigate the risk of default or credit quality deterioration in some portion of
a Fund’s holdings) or “selling” credit protection (i.e., attempting to gain exposure to an
underlying issuer’s credit quality characteristics without directly investing in
that issuer). A Fund may be a buyer or seller of a credit default swap. Where a
Fund is a seller of credit protection, it adds leverage to its portfolio because
the Fund is subject to investment exposure on the notional amount of the swap
which would be offset to the extent of its uncommitted cash or cash equivalents.
A Fund will only sell credit protection with respect to securities in which it
would be authorized to invest directly.
If
a Fund is a buyer of a credit default swap and no credit event occurs, a Fund
will lose its premium payment and recover nothing. However, if a Fund is a buyer
and a credit event occurs, a Fund will receive the full notional amount, or “par
value,” of the reference obligation in exchange for the reference obligation or
a payment equal to the difference in value between the full notional amount, or
“par value,” of the reference obligation and the market value of the reference
obligation. As a seller, a Fund receives a fixed rate of income reflecting the
buyer’s premium payments through the term of the contract (typically between six
months and three years), provided that there is no credit event. If a credit
event occurs, a Fund must pay the buyer the full notional amount, or “par
value,” of the reference obligation in exchange for the reference obligation or
the difference in value between the full notional amount, or “par value,” of the
reference obligation and the market value of the reference obligation. Credit
default swaps may involve greater risks than if a Fund had invested in the
reference obligation directly. In addition to the risks applicable to
derivatives generally, credit default swaps involve special risks because they
may be difficult to value and may be more susceptible to liquidity and credit
risk.
Emerging Markets. For all Funds other than the
Emerging Markets Debt Fund, emerging markets are defined as every country in the
world except the United States, Canada, Japan, Australia, New Zealand, Hong
Kong, Singapore and most Western European countries. Emerging market companies
are companies organized under the laws of an emerging market country or having
securities that are traded principally on an exchange or over-the-counter in an
emerging market country.
The
Emerging Markets Debt Fund defines emerging markets as every country in the
world except countries included in the MSCI World Index. Emerging market
companies are companies organized under the laws of an emerging market country
or having securities that are traded principally on an exchange or
over-the-counter in an emerging market country.
Floating and Variable Rate Securities. The
Emerging Markets Debt Fund may invest in instruments having rates of interest
that are adjusted periodically or that “float” continuously or periodically
according to formulae intended to minimize fluctuation in values of the
instruments (“Variable Rate Securities”). The interest rate on a Variable Rate
Security is ordinarily determined by reference to, or is a percentage of, an
objective standard such as LIBOR (or a successor), a bank’s prime rate, the
90-day U.S. Treasury Bill rate or the rate of return on commercial paper or bank
certificates of deposit. Generally, the changes in the interest rates on
Variable Rate
153
Securities
reduce the fluctuation in the market value of such securities. Accordingly, as
interest rates decrease or increase, the potential for capital appreciation or
depreciation is less than for fixed-rate obligations. The Emerging Markets Debt
Fund may invest in Variable Rate Securities that have a demand feature entitling
the Fund to resell the securities to the issuer or a third-party at an amount
approximately equal to the principal amount thereof plus accrued interest
(“Variable Rate Demand Securities”). As is the case for other Variable Rate
Securities, the interest rate on Variable Rate Demand Securities varies
according to some objective standard intended to minimize fluctuation in the
values of the instruments. Many of these Variable Rate Demand Securities are
unrated, their transfer is restricted by the issuer and there is little if any
secondary market for the securities. Thus, any inability of the issuers of such
securities to pay on demand could adversely affect the liquidity of these
securities. The Fund determines the maturity of Variable Rate Securities in
accordance with SEC rules, which allow the Fund to consider certain of such
instruments as having maturities shorter than the maturity date on the face of
the instrument if they are guaranteed by the U.S. Government or its agencies, if
they have a stated maturity date of one year or less, or if they have demand
features prior to maturity.
Initial Public Offerings (“IPOs”). A Fund may
participate in IPOs. IPOs are subject to high volatility and are of limited
availability. A Fund’s ability to obtain allocations of IPOs is subject to
allocation by members of the underwriting syndicate to various clients and
allocation by the Adviser among its clients. When a Fund is small in size, the
Fund’s participation in IPOs may have a magnified impact on the Fund’s
performance.
Investment Grade Securities. A security is
considered to be investment grade if it is rated in one of the highest four
categories by at least one nationally recognized statistical rating
organization.
Hybrid Bonds. The Emerging Markets Debt Fund
may invest in hybrid bonds. Hybrid bonds are securities that have debt and
equity characteristics. Like other bonds, hybrid bonds have periodic coupon
payments and a stated maturity and the issuer pays interest pre-tax. Like equity
securities, hybrid bonds fall below senior debt in an issuer’s capital structure
and have features that allow the issuer to skip payments without defaulting.
Private Placements. A Fund may purchase
securities in private placement transactions. Investments in private placements
may be difficult to sell at the time and at the price desired by a Fund;
companies making private placements may make less information available than
publicly offered companies; and privately placed securities are more difficult
to value than publicly traded securities. These factors may have a negative
effect on the performance of a Fund. Securities acquired through private
placements are not registered for resale in the general securities market and
may be classified as illiquid.
REITs. REITs are pooled investment vehicles
that typically invest directly in real estate, in mortgages and loans
collateralized by real estate, or in a combination of the two. “Equity” REITs
invest primarily in real estate that produces income from rentals. “Mortgage”
REITs invest primarily in mortgages and derive their income from interest
payments. REITs usually specialize in a particular type of property and may
concentrate their investments in particular geographical areas. REITs issue
stocks and most REIT stocks trade on the major stock exchanges or
over-the-counter. Exposure to real estate markets, through securities of REITs
or other instruments, will be subject to risks of the specific properties or
property types and by default rates of borrowers or tenants. Some REITs may have
limited diversification and may be subject to risks inherent in investments in a
limited number of properties, in a narrow geographic area, or in a single
property type. Real estate is also affected by general economic conditions. When
growth is slowing, demand for property decreases and prices may decline. Rising
interest rates, which drive up mortgage and financing costs, can restrain
construction and buying and selling activity, and may reduce the appeal of real
estate investments. REITs depend generally on their ability to generate cash
flow to make distributions to shareholders or unitholders, and may be subject to
defaults by borrowers and self-liquidations. A REIT’s return may be adversely
affected when interest rates are high or rising. Distributions to shareholders
attributable to dividends received from REITs generally are taxed as ordinary
income for federal income tax purposes. In addition, the failure of a REIT to
continue to qualify as a REIT for federal income tax purposes would have an
adverse effect upon the value of an investment in that REIT.
154
Repurchase Agreements. Repurchase agreements
are instruments under which a Fund acquires ownership of a security, and the
seller, a broker-dealer or a bank agrees to repurchase the security at a
mutually agreed upon time and price. The repurchase agreement serves to fix the
yield of the security during a Fund’s holding period. The Funds currently intend
to enter into repurchase agreements only with member banks of the Federal
Reserve System or primary dealers in U.S. Government securities and that are
cleared through the Fixed Income Clearing Corporation (“FICC”). In all cases,
the Adviser must be satisfied with the creditworthiness of the seller before
entering into a repurchase agreement. In the event of the bankruptcy or other
default of the seller of a repurchase agreement, a Fund could incur expenses and
delays enforcing its rights under the agreement, and experience a decline in the
value of the underlying securities and loss of income. The maturity of a
security subject to repurchase may exceed one year. Repurchase agreements
maturing in more than seven days, together with any securities that are
restricted as to disposition under the federal securities laws or are otherwise
considered to be illiquid, will not exceed 15% of the net assets of each Fund.
Rule 144A Securities. Rule 144A securities are
restricted securities that can be sold to qualified institutional buyers under
the Securities Act of 1933, as amended. Investing in Rule 144A securities may
increase the illiquidity of a Fund’s investments in the event that an adequate
trading market does not exist for these securities.
Sovereign Debt. The Emerging Markets Debt Fund
may invest in sovereign debt issued by a foreign national government. Sovereign
debt is typically denominated in a currency other than the issuing government’s
domestic currency.
U.S. Government Securities. These are fixed
income obligations of the U.S. Government and its various agencies. U.S.
Government securities issued by the U.S. Treasury (bills, notes and bonds) are
backed by the full faith and credit of the federal government. Some government
securities not issued by the U.S. Treasury also carry the U.S. Government’s full
faith and credit backing on principal or interest payments. Some securities are
backed by the issuer’s right to borrow from the U.S. Treasury, and some are
backed only by the credit of the issuing organization. All U.S. Government
securities are considered highly creditworthy. This guarantee, however, does not
extend to the market prices for such securities, which can fluctuate.
Warrants. Warrants are securities giving the
holder the right, but not the obligation, to buy the stock of an issuer at a
given price (generally higher than the value of the stock at the time of
issuance) during a specified period or perpetually. Warrants may be acquired
separately or in connection with the acquisition of securities. Warrants do not
carry with them the right to dividends or voting rights with respect to the
securities that they entitle their holder to purchase and they do not represent
any rights in the assets of the issuer. As a result, warrants may be considered
to have more speculative characteristics than certain other types of
investments. In addition, the value of a warrant does not necessarily change
with the value of the underlying securities and a warrant ceases to have value
if it is not exercised prior to its expiration date.
When-Issued and Delayed Delivery
Securities. From time to time, in the ordinary course of business, a Fund
may purchase newly issued securities appropriate for the Fund on a “when-issued”
basis and may purchase or sell securities appropriate for the Fund on a “delayed
delivery” basis. When-issued or delayed delivery transactions involve a
commitment by a Fund to purchase or sell particular securities, with payment and
delivery to take place at a future date. These transactions allow a Fund to lock
in an attractive purchase price or yield on a security the Fund intends to
purchase. Normally, settlement occurs within one month of the purchase or sale.
During the period between purchase and settlement, no payment is made or
received by a Fund and, for delayed delivery purchases, no interest accrues to a
Fund. Because a Fund is required to set aside cash or liquid securities at least
equal in value to its commitments to purchase when-issued or delayed delivery
securities, the Adviser’s ability to manage the Fund’s assets may be affected by
such commitments. A Fund will only make commitments to purchase securities on a
when-issued or delayed delivery basis with the intention of actually acquiring
the securities, but it reserves the right to sell them before the settlement
date if it is deemed advisable.
155
FINANCIAL
HIGHLIGHTS
The
tables below are intended to help you understand each Fund’s financial
performance for the fiscal periods presented. Certain information reflects
financial results for a single Fund share. The total return figures show what an
investor in a Fund would have earned (or lost) on an investment in the Fund
(assuming reinvestment of all dividends and distributions). The information has
been derived from the Funds’ financial statements audited by Ernst &
Young LLP, an independent registered public accounting firm, whose report, along
with the Funds’ financial statements, is included in the annual report dated
December 31, 2023, which is available upon request (see back cover). Net
investment income (loss) per share is based on the average shares outstanding
during the year.
In
connection with the Reorganization, the Small Cap Value Fund has adopted the
operating history of the Predecessor Fund for financial reporting purposes.
Therefore, the financial highlights shown below for the Fund’s fiscal periods
prior to July 16, 2021 are those of the Predecessor Fund. The information
shown below with respect to the Fund for periods prior to that date has been
derived from the Predecessor Fund’s financial statements, which were audited by
the Predecessor Fund’s independent registered public accounting firm. The
information shown for periods ended following that date has been derived from
the Fund’s financial statements audited by Ernst & Young LLP, whose
report, along with the Fund’s financial statements, is included in the Fund’s
annual report dated December 31, 2023, which is available upon request.
Because the Predecessor Fund did not offer share classes other than
Institutional Class shares, financial highlights for Class R6 or
Class N shares of the Fund are provided for the fiscal period beginning
July 17, 2021 (Commencement Date of Operations).
Growth
Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
|
Years Ended December
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
7.95 |
|
|
$ |
11.81 |
|
|
$ |
11.15 |
|
|
$ |
9.45 |
|
|
$ |
7.91 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
(0.04 |
) |
|
|
(0.05 |
) |
|
|
(0.08 |
) |
|
|
(0.05 |
) |
|
|
(0.03 |
) |
Net
realized and unrealized gain (loss) on investments |
|
|
3.03 |
|
|
|
(3.44 |
) |
|
|
2.49 |
|
|
|
3.43 |
|
|
|
2.54 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
2.99 |
|
|
|
(3.49 |
) |
|
|
2.41 |
|
|
|
3.38 |
|
|
|
2.51 |
|
Less
distributions from: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net
realized gain |
|
|
1.24 |
|
|
|
0.37 |
|
|
|
1.75 |
|
|
|
1.68 |
|
|
|
0.97 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
1.24 |
|
|
|
0.37 |
|
|
|
1.75 |
|
|
|
1.68 |
|
|
|
0.97 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
9.70 |
|
|
$ |
7.95 |
|
|
$ |
11.81 |
|
|
$ |
11.15 |
|
|
$ |
9.45 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%) |
|
|
37.76 |
|
|
|
(29.65 |
) |
|
|
22.09 |
|
|
|
35.97 |
|
|
|
31.97 |
|
Ratios
to average daily net assets (%): |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
1.26 |
|
|
|
1.24 |
|
|
|
1.21 |
|
|
|
1.26 |
|
|
|
1.24 |
|
Expenses,
net of waivers and reimbursements |
|
|
1.20 |
|
|
|
1.20 |
|
|
|
1.20 |
|
|
|
1.20 |
|
|
|
1.20 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
(0.49 |
) |
|
|
(0.60 |
) |
|
|
(0.67 |
) |
|
|
(0.55 |
) |
|
|
(0.35 |
) |
Net
investment income (loss), net of waivers and reimbursements |
|
|
(0.43 |
) |
|
|
(0.56 |
) |
|
|
(0.66 |
) |
|
|
(0.49 |
) |
|
|
(0.31 |
) |
Class
N net assets at the end of the year (in thousands) |
|
$ |
30,789 |
|
|
$ |
23,829 |
|
|
$ |
36,807 |
|
|
$ |
35,494 |
|
|
$ |
32,710 |
|
Portfolio
turnover rate (%) |
|
|
37 |
|
|
|
41 |
|
|
|
30 |
|
|
|
46 |
|
|
|
39 |
|
156
Growth
Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class I |
|
|
|
Years Ended December
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
10.15 |
|
|
$ |
14.91 |
|
|
$ |
13.64 |
|
|
$ |
11.25 |
|
|
$ |
9.25 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
(0.02 |
) |
|
|
(0.04 |
) |
|
|
(0.05 |
) |
|
|
(0.03 |
) |
|
|
(0.00 |
)^ |
Net
realized and unrealized gain (loss) on investments |
|
|
3.88 |
|
|
|
(4.35 |
) |
|
|
3.07 |
|
|
|
4.10 |
|
|
|
2.97 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
3.86 |
|
|
|
(4.39 |
) |
|
|
3.02 |
|
|
|
4.07 |
|
|
|
2.97 |
|
Less
distributions from: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net
realized gain |
|
|
1.24 |
|
|
|
0.37 |
|
|
|
1.75 |
|
|
|
1.68 |
|
|
|
0.97 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
1.24 |
|
|
|
0.37 |
|
|
|
1.75 |
|
|
|
1.68 |
|
|
|
0.97 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
12.77 |
|
|
$ |
10.15 |
|
|
$ |
14.91 |
|
|
$ |
13.64 |
|
|
$ |
11.25 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%) |
|
|
38.15 |
|
|
|
(29.52 |
) |
|
|
22.54 |
|
|
|
36.35 |
|
|
|
32.32 |
|
Ratios
to average daily net assets (%): |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Expenses |
|
|
0.91 |
|
|
|
0.92 |
|
|
|
0.89 |
|
|
|
0.93 |
|
|
|
0.92 |
|
Net
investment income (loss) |
|
|
(0.14 |
) |
|
|
(0.29 |
) |
|
|
(0.35 |
) |
|
|
(0.23 |
) |
|
|
(0.03 |
) |
Class
I net assets at the end of the year (in thousands) |
|
$ |
164,166 |
|
|
$ |
136,051 |
|
|
$ |
293,900 |
|
|
$ |
249,716 |
|
|
$ |
220,660 |
|
Portfolio
turnover rate (%) |
|
|
37 |
|
|
|
41 |
|
|
|
30 |
|
|
|
46 |
|
|
|
39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class R6 |
|
|
|
Years Ended December
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019(a) |
|
Net
asset value, beginning of year |
|
$ |
10.19 |
|
|
$ |
14.95 |
|
|
$ |
13.67 |
|
|
$ |
11.26 |
|
|
$ |
11.06 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
(0.01 |
) |
|
|
(0.02 |
) |
|
|
(0.04 |
) |
|
|
(0.03 |
) |
|
|
(0.00 |
)^ |
Net
realized and unrealized gain (loss) on investments |
|
|
3.90 |
|
|
|
(4.37 |
) |
|
|
3.07 |
|
|
|
4.12 |
|
|
|
1.17 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
3.89 |
|
|
|
(4.39 |
) |
|
|
3.03 |
|
|
|
4.09 |
|
|
|
1.17 |
|
Less
distributions from: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net
realized gain |
|
|
1.24 |
|
|
|
0.37 |
|
|
|
1.75 |
|
|
|
1.68 |
|
|
|
0.97 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
1.24 |
|
|
|
0.37 |
|
|
|
1.75 |
|
|
|
1.68 |
|
|
|
0.97 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
12.84 |
|
|
$ |
10.19 |
|
|
$ |
14.95 |
|
|
$ |
13.67 |
|
|
$ |
11.26 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%)* |
|
|
38.19 |
|
|
|
(29.44 |
) |
|
|
22.55 |
|
|
|
36.50 |
|
|
|
10.75 |
|
Ratios
to average daily net assets (%)**: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Expenses |
|
|
0.87 |
|
|
|
0.87 |
|
|
|
0.84 |
|
|
|
0.87 |
|
|
|
0.88 |
|
Net
investment income (loss) |
|
|
(0.10 |
) |
|
|
(0.18 |
) |
|
|
(0.29 |
) |
|
|
(0.23 |
) |
|
|
(0.06 |
) |
Class
R6 net assets at the end of the year (in thousands) |
|
$ |
44,437 |
|
|
$ |
29,128 |
|
|
$ |
14,993 |
|
|
$ |
12,041 |
|
|
$ |
217 |
|
Portfolio
turnover rate (%)* |
|
|
37 |
|
|
|
41 |
|
|
|
30 |
|
|
|
46 |
|
|
|
39 |
|
(a) |
For
the period from May 2, 2019 (Commencement of Operations) to
December 31, 2019. |
* |
Rates
are not annualized for periods less than a year.
|
** |
Rates
are annualized for periods less than a year. |
^ |
Amount
is less than $0.005 per share. |
157
Large
Cap Growth Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
|
Years Ended December
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
16.38 |
|
|
$ |
24.49 |
|
|
$ |
20.03 |
|
|
$ |
15.27 |
|
|
$ |
11.99 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
(0.02 |
) |
|
|
(0.03 |
) |
|
|
(0.07 |
) |
|
|
0.01 |
|
|
|
0.00 |
^ |
Net
realized and unrealized gain (loss) on investments |
|
|
6.59 |
|
|
|
(7.96 |
) |
|
|
5.65 |
|
|
|
5.52 |
|
|
|
4.29 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
6.57 |
|
|
|
(7.99 |
) |
|
|
5.58 |
|
|
|
5.53 |
|
|
|
4.29 |
|
Less
distributions from: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.00 |
^ |
|
|
0.01 |
|
Net
realized gain |
|
|
— |
|
|
|
0.12 |
|
|
|
1.12 |
|
|
|
0.77 |
|
|
|
1.00 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
— |
|
|
|
0.12 |
|
|
|
1.12 |
|
|
|
0.77 |
|
|
|
1.01 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
22.95 |
|
|
$ |
16.38 |
|
|
$ |
24.49 |
|
|
$ |
20.03 |
|
|
$ |
15.27 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%) |
|
|
40.11 |
|
|
|
(32.61 |
) |
|
|
28.03 |
|
|
|
36.30 |
|
|
|
36.00 |
|
Ratios
to average daily net assets (%): |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
1.04 |
|
|
|
1.03 |
|
|
|
1.05 |
|
|
|
1.09 |
|
|
|
1.12 |
|
Expenses,
net of waivers and reimbursements |
|
|
0.90 |
|
|
|
0.90 |
|
|
|
0.90 |
|
|
|
0.90 |
|
|
|
0.95 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
(0.24 |
) |
|
|
(0.28 |
) |
|
|
(0.46 |
) |
|
|
(0.15 |
) |
|
|
(0.14 |
) |
Net
investment income (loss), net of waivers and reimbursements |
|
|
(0.10 |
) |
|
|
(0.15 |
) |
|
|
(0.31 |
) |
|
|
0.04 |
|
|
|
0.03 |
|
Class
N net assets at the end of the year (in thousands) |
|
$ |
158,351 |
|
|
$ |
132,225 |
|
|
$ |
203,014 |
|
|
$ |
138,152 |
|
|
$ |
65,314 |
|
Portfolio
turnover rate (%) |
|
|
43 |
|
|
|
29 |
|
|
|
26 |
|
|
|
35 |
|
|
|
37 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class I |
|
|
|
Years Ended December
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
17.54 |
|
|
$ |
26.18 |
|
|
$ |
21.29 |
|
|
$ |
16.19 |
|
|
$ |
12.66 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
0.03 |
|
|
|
0.03 |
|
|
|
(0.02 |
) |
|
|
0.06 |
|
|
|
0.04 |
|
Net
realized and unrealized gain (loss) on investments |
|
|
7.07 |
|
|
|
(8.53 |
) |
|
|
6.03 |
|
|
|
5.85 |
|
|
|
4.54 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
7.10 |
|
|
|
(8.50 |
) |
|
|
6.01 |
|
|
|
5.91 |
|
|
|
4.58 |
|
Less
distributions from: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
— |
|
|
|
0.02 |
|
|
|
— |
|
|
|
0.04 |
|
|
|
0.05 |
|
Net
realized gain |
|
|
— |
|
|
|
0.12 |
|
|
|
1.12 |
|
|
|
0.77 |
|
|
|
1.00 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
— |
|
|
|
0.14 |
|
|
|
1.12 |
|
|
|
0.81 |
|
|
|
1.05 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
24.64 |
|
|
$ |
17.54 |
|
|
$ |
26.18 |
|
|
$ |
21.29 |
|
|
$ |
16.19 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%) |
|
|
40.48 |
|
|
|
(32.46 |
) |
|
|
28.39 |
|
|
|
36.59 |
|
|
|
36.35 |
|
Ratios
to average daily net assets (%): |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
0.78 |
|
|
|
0.79 |
|
|
|
0.75 |
|
|
|
0.80 |
|
|
|
0.81 |
|
Expenses,
net of waivers and reimbursements |
|
|
0.65 |
|
|
|
0.65 |
|
|
|
0.65 |
|
|
|
0.65 |
|
|
|
0.70 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
0.02 |
|
|
|
(0.01 |
) |
|
|
(0.17 |
) |
|
|
0.16 |
|
|
|
0.16 |
|
Net
investment income (loss), net of waivers and reimbursements |
|
|
0.15 |
|
|
|
0.13 |
|
|
|
(0.07 |
) |
|
|
0.31 |
|
|
|
0.27 |
|
Class
I net assets at the end of the year (in thousands) |
|
$ |
1,106,857 |
|
|
$ |
702,441 |
|
|
$ |
669,060 |
|
|
$ |
397,370 |
|
|
$ |
236,930 |
|
Portfolio
turnover rate (%) |
|
|
43 |
|
|
|
29 |
|
|
|
26 |
|
|
|
35 |
|
|
|
37 |
|
^ |
Amount
is less than $0.005 per share. |
158
Large
Cap Growth Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class R6 |
|
|
|
Years Ended December
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019(a) |
|
Net
asset value, beginning of year |
|
$ |
17.53 |
|
|
$ |
26.16 |
|
|
$ |
21.27 |
|
|
$ |
16.17 |
|
|
$ |
15.12 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
0.04 |
|
|
|
0.04 |
|
|
|
(0.00 |
)^ |
|
|
0.01 |
|
|
|
0.04 |
|
Net
realized and unrealized gain (loss) on investments |
|
|
7.07 |
|
|
|
(8.52 |
) |
|
|
6.01 |
|
|
|
5.91 |
|
|
|
2.07 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
7.11 |
|
|
|
(8.48 |
) |
|
|
6.01 |
|
|
|
5.92 |
|
|
|
2.11 |
|
Less
distributions from: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
— |
|
|
|
0.03 |
|
|
|
0.00 |
^ |
|
|
0.05 |
|
|
|
0.06 |
|
Net
realized gain |
|
|
— |
|
|
|
0.12 |
|
|
|
1.12 |
|
|
|
0.77 |
|
|
|
1.00 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
— |
|
|
|
0.15 |
|
|
|
1.12 |
|
|
|
0.82 |
|
|
|
1.06 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
24.64 |
|
|
$ |
17.53 |
|
|
$ |
26.16 |
|
|
$ |
21.27 |
|
|
$ |
16.17 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%)* |
|
|
40.56 |
|
|
|
(32.41 |
) |
|
|
28.42 |
|
|
|
36.70 |
|
|
|
14.13 |
|
Ratios
to average daily net assets (%)**: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
0.65 |
|
|
|
0.66 |
|
|
|
0.67 |
|
|
|
0.70 |
|
|
|
0.71 |
|
Expenses,
net of waivers and reimbursements |
|
|
0.60 |
|
|
|
0.60 |
|
|
|
0.60 |
|
|
|
0.60 |
|
|
|
0.60 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
0.14 |
|
|
|
0.13 |
|
|
|
(0.08 |
) |
|
|
(0.03 |
) |
|
|
0.22 |
|
Net
investment income (loss), net of waivers and reimbursements |
|
|
0.19 |
|
|
|
0.19 |
|
|
|
(0.01 |
) |
|
|
0.07 |
|
|
|
0.33 |
|
Class
R6 net assets at the end of the year (in thousands) |
|
$ |
368,894 |
|
|
$ |
238,354 |
|
|
$ |
233,946 |
|
|
$ |
177,347 |
|
|
$ |
1,590 |
|
Portfolio
turnover rate (%)* |
|
|
43 |
|
|
|
29 |
|
|
|
26 |
|
|
|
35 |
|
|
|
37 |
|
(a) |
For
the period from May 2, 2019 (Commencement of Operations) to
December 31, 2019. |
* |
Rates
are not annualized for periods less than a year.
|
** |
Rates
are annualized for periods less than a year. |
^ |
Amount
is less than $0.005 per share. |
159
Mid
Cap Value Fund
|
|
|
|
|
|
|
| |
|
|
Class I |
|
|
|
Years Ended December 31, |
|
|
|
2023 |
|
|
2022(a) |
|
Net
asset value, beginning of year |
|
$ |
9.19 |
|
|
$ |
10.00 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
| |
Net
investment income (loss) |
|
|
0.14 |
|
|
|
0.12 |
|
Net
realized and unrealized gain (loss) on investments |
|
|
1.07 |
|
|
|
(0.83 |
) |
| |
|
|
|
|
|
|
|
Total
from investment operations |
|
|
1.21 |
|
|
|
(0.71 |
) |
Less
distributions from: |
|
|
|
| |
|
| |
Net
investment income |
|
|
0.15 |
|
|
|
0.10 |
|
Net
realized gain |
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
Total
distributions |
|
|
0.15 |
|
|
|
0.10 |
|
| |
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
10.25 |
|
|
$ |
9.19 |
|
| |
|
|
|
|
|
|
|
Total
return (%)* |
|
|
13.21 |
|
|
|
(7.13 |
) |
Ratios
to average daily net assets (%)**: |
|
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
9.08 |
|
|
|
8.52 |
|
Expenses,
net of waivers and reimbursements |
|
|
0.75 |
|
|
|
0.75 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
(6.85 |
) |
|
|
(6.14 |
) |
Net
investment income (loss), net of waivers and reimbursements |
|
|
1.48 |
|
|
|
1.63 |
|
Class
I net assets at the end of the year (in thousands) |
|
$ |
85 |
|
|
$ |
76 |
|
Portfolio
turnover rate (%)* |
|
|
32 |
|
|
|
21 |
|
|
|
|
|
|
|
|
| |
|
|
Class R6 |
|
|
|
Years Ended December 31, |
|
|
|
2023 |
|
|
2022(a) |
|
Net
asset value, beginning of year |
|
$ |
9.19 |
|
|
$ |
10.00 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
| |
Net
investment income (loss) |
|
|
0.14 |
|
|
|
0.11 |
|
Net
realized and unrealized gain (loss) on investments |
|
|
1.08 |
|
|
|
(0.82 |
) |
| |
|
|
|
|
|
|
|
Total
from investment operations |
|
|
1.22 |
|
|
|
(0.71 |
) |
Less
distributions from: |
|
|
|
| |
|
| |
Net
investment income |
|
|
0.16 |
|
|
|
0.10 |
|
Net
realized gain |
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
Total
distributions |
|
|
0.16 |
|
|
|
0.10 |
|
| |
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
10.25 |
|
|
$ |
9.19 |
|
| |
|
|
|
|
|
|
|
Total
return (%)* |
|
|
13.14 |
|
|
|
(7.01 |
) |
Ratios
to average daily net assets (%)**: |
|
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
9.02 |
|
|
|
8.52 |
|
Expenses,
net of waivers and reimbursements |
|
|
0.70 |
|
|
|
0.70 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
(6.82 |
) |
|
|
(6.35 |
) |
Net
investment income (loss), net of waivers and reimbursements |
|
|
1.50 |
|
|
|
1.47 |
|
Class
R6 net assets at the end of the year (in thousands) |
|
$ |
1,373 |
|
|
$ |
1,431 |
|
Portfolio
turnover rate (%)* |
|
|
32 |
|
|
|
21 |
|
(a) |
For
the period from March 16, 2022 (Commencement of Operations) to
December 31, 2022. |
* |
Rates
are not annualized for periods less than a year.
|
** |
Rates
are annualized for periods less than a year. |
160
Small-Mid
Cap Core Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class I |
|
|
|
Years Ended December
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019(a) |
|
Net
asset value, beginning of year |
|
$ |
13.52 |
|
|
$ |
16.31 |
|
|
$ |
12.88 |
|
|
$ |
10.68 |
|
|
$ |
10.00 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
0.04 |
|
|
|
(0.01 |
) |
|
|
(0.03 |
) |
|
|
0.00 |
^ |
|
|
0.02 |
|
Net
realized and unrealized gain (loss) on investments |
|
|
1.75 |
|
|
|
(2.78 |
) |
|
|
3.46 |
|
|
|
2.20 |
|
|
|
0.67 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
1.79 |
|
|
|
(2.79 |
) |
|
|
3.43 |
|
|
|
2.20 |
|
|
|
0.69 |
|
Less
distributions from: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
0.02 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
Net
realized gain |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
0.02 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
15.29 |
|
|
$ |
13.52 |
|
|
$ |
16.31 |
|
|
$ |
12.88 |
|
|
$ |
10.68 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%)* |
|
|
13.26 |
|
|
|
(17.11 |
) |
|
|
26.63 |
|
|
|
20.60 |
|
|
|
6.87 |
|
Ratios
to average daily net assets (%)**: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
1.16 |
|
|
|
1.21 |
|
|
|
1.25 |
|
|
|
1.22 |
|
|
|
3.92 |
|
Expenses,
net of waivers and reimbursements |
|
|
0.95 |
|
|
|
0.95 |
|
|
|
0.95 |
|
|
|
0.95 |
|
|
|
0.95 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
0.09 |
|
|
|
(0.32 |
) |
|
|
(0.47 |
) |
|
|
(0.27 |
) |
|
|
(2.23 |
) |
Net
investment income (loss), net of waivers and reimbursements |
|
|
0.30 |
|
|
|
(0.06 |
) |
|
|
(0.17 |
) |
|
|
0.00 |
|
|
|
0.74 |
|
Class
I net assets at the end of the year (in thousands) |
|
$ |
101,972 |
|
|
$ |
87,540 |
|
|
$ |
61,433 |
|
|
$ |
22,958 |
|
|
$ |
1,655 |
|
Portfolio
turnover rate (%)* |
|
|
41 |
|
|
|
50 |
|
|
|
45 |
|
|
|
244 |
|
|
|
12 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class R6 |
|
|
|
Years Ended December
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019(a) |
|
Net
asset value, beginning of year |
|
$ |
13.53 |
|
|
$ |
16.32 |
|
|
$ |
12.88 |
|
|
$ |
10.68 |
|
|
$ |
10.00 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
0.05 |
|
|
|
0.00 |
^ |
|
|
(0.02 |
) |
|
|
0.01 |
|
|
|
0.01 |
|
Net
realized and unrealized gain (loss) on investments |
|
|
1.75 |
|
|
|
(2.79 |
) |
|
|
3.46 |
|
|
|
2.19 |
|
|
|
0.68 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
1.80 |
|
|
|
(2.79 |
) |
|
|
3.44 |
|
|
|
2.20 |
|
|
|
0.69 |
|
Less
distributions from: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
0.03 |
|
|
|
— |
|
|
|
— |
|
|
|
0.00 |
^ |
|
|
0.01 |
|
Net
realized gain |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
0.03 |
|
|
|
— |
|
|
|
— |
|
|
|
0.00 |
^ |
|
|
0.01 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
15.30 |
|
|
$ |
13.53 |
|
|
$ |
16.32 |
|
|
$ |
12.88 |
|
|
$ |
10.68 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%)* |
|
|
13.30 |
|
|
|
(17.10 |
) |
|
|
26.71 |
|
|
|
20.60 |
|
|
|
6.88 |
|
Ratios
to average daily net assets (%)**: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
1.01 |
|
|
|
1.05 |
|
|
|
1.16 |
|
|
|
1.07 |
|
|
|
3.92 |
|
Expenses,
net of waivers and reimbursements |
|
|
0.90 |
|
|
|
0.90 |
|
|
|
0.90 |
|
|
|
0.90 |
|
|
|
0.90 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
0.24 |
|
|
|
(0.14 |
) |
|
|
(0.37 |
) |
|
|
(0.11 |
) |
|
|
(2.71 |
) |
Net
investment income (loss), net of waivers and reimbursements |
|
|
0.35 |
|
|
|
0.01 |
|
|
|
(0.11 |
) |
|
|
0.06 |
|
|
|
0.31 |
|
Class
R6 net assets at the end of the year (in thousands) |
|
$ |
94,208 |
|
|
$ |
56,681 |
|
|
$ |
31,347 |
|
|
$ |
7,087 |
|
|
$ |
4,933 |
|
Portfolio
turnover rate (%)* |
|
|
41 |
|
|
|
50 |
|
|
|
45 |
|
|
|
244 |
|
|
|
12 |
|
(a) |
For
the period from October 1, 2019 (Commencement of Operations) to
December 31, 2019. |
* |
Rates
are not annualized for periods less than a year.
|
** |
Rates
are annualized for periods less than a year. |
^ |
Amount
is less than $0.005 per share. |
161
Small-Mid
Cap Growth Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
|
Years Ended December
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
23.96 |
|
|
$ |
32.27 |
|
|
$ |
32.96 |
|
|
$ |
25.41 |
|
|
$ |
20.97 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
(0.16 |
) |
|
|
(0.23 |
) |
|
|
(0.36 |
) |
|
|
(0.24 |
) |
|
|
(0.20 |
) |
Net
realized and unrealized gain (loss) on investments |
|
|
4.35 |
|
|
|
(7.22 |
) |
|
|
2.90 |
|
|
|
8.37 |
|
|
|
6.56 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
4.19 |
|
|
|
(7.45 |
) |
|
|
2.54 |
|
|
|
8.13 |
|
|
|
6.36 |
|
Less
distributions from: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net
realized gain |
|
|
2.23 |
|
|
|
0.86 |
|
|
|
3.23 |
|
|
|
0.58 |
|
|
|
1.92 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
2.23 |
|
|
|
0.86 |
|
|
|
3.23 |
|
|
|
0.58 |
|
|
|
1.92 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
25.92 |
|
|
$ |
23.96 |
|
|
$ |
32.27 |
|
|
$ |
32.96 |
|
|
$ |
25.41 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%) |
|
|
17.64 |
|
|
|
(23.11 |
) |
|
|
8.27 |
|
|
|
32.04 |
|
|
|
30.41 |
|
Ratios
to average daily net assets (%): |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
1.39 |
|
|
|
1.43 |
|
|
|
1.43 |
|
|
|
1.45 |
|
|
|
1.43 |
|
Expenses,
net of waivers and reimbursements |
|
|
1.28 |
|
|
|
1.35 |
|
|
|
1.35 |
|
|
|
1.35 |
|
|
|
1.35 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
(0.72 |
) |
|
|
(0.96 |
) |
|
|
(1.10 |
) |
|
|
(1.01 |
) |
|
|
(0.88 |
) |
Net
investment income (loss), net of waivers and reimbursements |
|
|
(0.61 |
) |
|
|
(0.88 |
) |
|
|
(1.02 |
) |
|
|
(0.91 |
) |
|
|
(0.80 |
) |
Class
N net assets at the end of the year (in thousands) |
|
$ |
107,791 |
|
|
$ |
110,241 |
|
|
$ |
232,166 |
|
|
$ |
314,572 |
|
|
$ |
334,017 |
|
Portfolio
turnover rate (%) |
|
|
49 |
|
|
|
49 |
|
|
|
38 |
|
|
|
55 |
|
|
|
56 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class I |
|
|
|
Years Ended December
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
25.91 |
|
|
$ |
34.72 |
|
|
$ |
35.13 |
|
|
$ |
26.99 |
|
|
$ |
22.12 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
(0.10 |
) |
|
|
(0.18 |
) |
|
|
(0.29 |
) |
|
|
(0.19 |
) |
|
|
(0.14 |
) |
Net
realized and unrealized gain (loss) on investments |
|
|
4.71 |
|
|
|
(7.77 |
) |
|
|
3.11 |
|
|
|
8.91 |
|
|
|
6.93 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
4.61 |
|
|
|
(7.95 |
) |
|
|
2.82 |
|
|
|
8.72 |
|
|
|
6.79 |
|
Less
distributions from: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net
realized gain |
|
|
2.23 |
|
|
|
0.86 |
|
|
|
3.23 |
|
|
|
0.58 |
|
|
|
1.92 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
2.23 |
|
|
|
0.86 |
|
|
|
3.23 |
|
|
|
0.58 |
|
|
|
1.92 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
28.29 |
|
|
$ |
25.91 |
|
|
$ |
34.72 |
|
|
$ |
35.13 |
|
|
$ |
26.99 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%) |
|
|
17.93 |
|
|
|
(22.92 |
) |
|
|
8.56 |
|
|
|
32.35 |
|
|
|
30.77 |
|
Ratios
to average daily net assets (%): |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
1.14 |
|
|
|
1.17 |
|
|
|
1.16 |
|
|
|
1.17 |
|
|
|
1.16 |
|
Expenses,
net of waivers and reimbursements |
|
|
1.03 |
|
|
|
1.10 |
|
|
|
1.10 |
|
|
|
1.10 |
|
|
|
1.10 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
(0.47 |
) |
|
|
(0.70 |
) |
|
|
(0.83 |
) |
|
|
(0.73 |
) |
|
|
(0.59 |
) |
Net
investment income (loss), net of waivers and reimbursements |
|
|
(0.36 |
) |
|
|
(0.63 |
) |
|
|
(0.77 |
) |
|
|
(0.66 |
) |
|
|
(0.53 |
) |
Class
I net assets at the end of the year (in thousands) |
|
$ |
1,437,622 |
|
|
$ |
1,509,931 |
|
|
$ |
2,487,862 |
|
|
$ |
3,139,290 |
|
|
$ |
2,531,823 |
|
Portfolio
turnover rate (%) |
|
|
49 |
|
|
|
49 |
|
|
|
38 |
|
|
|
55 |
|
|
|
56 |
|
162
Small-Mid
Cap Growth Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class R6 |
|
|
|
Years Ended December
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019(a) |
|
Net
asset value, beginning of year |
|
$ |
25.99 |
|
|
$ |
34.79 |
|
|
$ |
35.18 |
|
|
$ |
27.01 |
|
|
$ |
26.76 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
(0.09 |
) |
|
|
(0.15 |
) |
|
|
(0.26 |
) |
|
|
(0.17 |
) |
|
|
(0.09 |
) |
Net
realized and unrealized gain (loss) on investments |
|
|
4.72 |
|
|
|
(7.79 |
) |
|
|
3.10 |
|
|
|
8.92 |
|
|
|
2.26 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
4.63 |
|
|
|
(7.94 |
) |
|
|
2.84 |
|
|
|
8.75 |
|
|
|
2.17 |
|
Less
distributions from: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net
realized gain |
|
|
2.23 |
|
|
|
0.86 |
|
|
|
3.23 |
|
|
|
0.58 |
|
|
|
1.92 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
2.23 |
|
|
|
0.86 |
|
|
|
3.23 |
|
|
|
0.58 |
|
|
|
1.92 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
28.39 |
|
|
$ |
25.99 |
|
|
$ |
34.79 |
|
|
$ |
35.18 |
|
|
$ |
27.01 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%)* |
|
|
17.95 |
|
|
|
(22.84 |
) |
|
|
8.60 |
|
|
|
32.44 |
|
|
|
8.17 |
|
Ratios
to average daily net assets (%)**: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
1.01 |
|
|
|
1.05 |
|
|
|
1.03 |
|
|
|
1.05 |
|
|
|
1.05 |
|
Expenses,
net of waivers and reimbursements |
|
|
0.97 |
|
|
|
1.05 |
|
|
|
1.03 |
|
|
|
1.05 |
|
|
|
1.05 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
(0.36 |
) |
|
|
(0.55 |
) |
|
|
(0.69 |
) |
|
|
(0.61 |
) |
|
|
(0.46 |
) |
Net
investment income (loss), net of waivers and reimbursements |
|
|
(0.32 |
) |
|
|
(0.55 |
) |
|
|
(0.69 |
) |
|
|
(0.61 |
) |
|
|
(0.46 |
) |
Class
R6 net assets at the end of the year (in thousands) |
|
$ |
449,782 |
|
|
$ |
392,153 |
|
|
$ |
328,034 |
|
|
$ |
123,220 |
|
|
$ |
39,974 |
|
Portfolio
turnover rate (%)* |
|
|
49 |
|
|
|
49 |
|
|
|
38 |
|
|
|
55 |
|
|
|
56 |
|
(a) |
For
the period from May 2, 2019 (Commencement of Operations) to
December 31, 2019. |
* |
Rates
are not annualized for periods less than a year.
|
** |
Rates
are annualized for periods less than a year. |
163
Small-Mid
Cap Value Fund
|
|
|
| |
|
|
Class I |
|
|
|
Period Ended December 31, |
|
|
|
2023(a) |
|
Net
asset value, beginning of year |
|
$ |
10.00 |
|
Income
(loss) from investment operations: |
|
|
| |
Net
investment income (loss) |
|
|
0.05 |
|
Net
realized and unrealized gain (loss) on investments |
|
|
0.60 |
|
| |
|
|
|
Total
from investment operations |
|
|
0.65 |
|
Less
distributions from: |
|
|
| |
Net
investment income |
|
|
0.05 |
|
Net
realized gain |
|
|
— |
|
| |
|
|
|
Total
distributions |
|
|
0.05 |
|
| |
|
|
|
Net
asset value, end of year |
|
$ |
10.60 |
|
| |
|
|
|
Total
return (%)* |
|
|
6.45 |
|
Ratios
to average daily net assets (%)**: |
|
|
| |
Expenses,
before waivers and reimbursements |
|
|
10.69 |
|
Expenses,
net of waivers and reimbursements |
|
|
0.85 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
(8.48 |
) |
Net
investment income (loss), net of waivers and reimbursements |
|
|
1.36 |
|
Class
I net assets at the end of the year (in thousands) |
|
$ |
84 |
|
Portfolio
turnover rate (%)* |
|
|
33 |
|
|
|
|
| |
|
|
Class R6 |
|
|
|
Period Ended December 31, |
|
|
|
2023(a) |
|
Net
asset value, beginning of year |
|
$ |
10.00 |
|
Income
(loss) from investment operations: |
|
|
| |
Net
investment income (loss) |
|
|
0.05 |
|
Net
realized and unrealized gain (loss) on investments |
|
|
0.60 |
|
| |
|
|
|
Total
from investment operations |
|
|
0.65 |
|
Less
distributions from: |
|
|
| |
Net
investment income |
|
|
0.05 |
|
Net
realized gain |
|
|
— |
|
| |
|
|
|
Total
distributions |
|
|
0.05 |
|
| |
|
|
|
Net
asset value, end of year |
|
$ |
10.60 |
|
| |
|
|
|
Total
return (%)* |
|
|
6.50 |
|
Ratios
to average daily net assets (%)**: |
|
|
| |
Expenses,
before waivers and reimbursements |
|
|
10.66 |
|
Expenses,
net of waivers and reimbursements |
|
|
0.80 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
(8.49 |
) |
Net
investment income (loss), net of waivers and reimbursements |
|
|
1.37 |
|
Class
R6 net assets at the end of the year (in thousands) |
|
$ |
1,497 |
|
Portfolio
turnover rate (%)* |
|
|
33 |
|
(a) |
For
the period from August 17, 2023 (Commencement of Operations) to
December 31, 2023. |
* |
Rates
are not annualized for periods less than a year.
|
** |
Rates
are annualized for periods less than a year. |
164
Small
Cap Growth Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
|
Years Ended December
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
24.01 |
|
|
$ |
31.90 |
|
|
$ |
34.49 |
|
|
$ |
27.75 |
|
|
$ |
23.23 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
(0.18 |
) |
|
|
(0.27 |
) |
|
|
(0.45 |
) |
|
|
(0.29 |
) |
|
|
(0.24 |
) |
Net
realized and unrealized gain (loss) on investments |
|
|
4.03 |
|
|
|
(6.61 |
) |
|
|
4.56 |
|
|
|
10.86 |
|
|
|
5.40 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
3.85 |
|
|
|
(6.88 |
) |
|
|
4.11 |
|
|
|
10.57 |
|
|
|
5.16 |
|
Less
distributions from: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net
realized gain |
|
|
0.50 |
|
|
|
1.01 |
|
|
|
6.70 |
|
|
|
3.83 |
|
|
|
0.64 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
0.50 |
|
|
|
1.01 |
|
|
|
6.70 |
|
|
|
3.83 |
|
|
|
0.64 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
27.36 |
|
|
$ |
24.01 |
|
|
$ |
31.90 |
|
|
$ |
34.49 |
|
|
$ |
27.75 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%) |
|
|
16.06 |
|
|
|
(21.59 |
) |
|
|
12.91 |
|
|
|
38.32 |
|
|
|
22.26 |
|
Ratios
to average daily net assets (%): |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
1.46 |
|
|
|
1.55 |
|
|
|
1.56 |
|
|
|
1.58 |
|
|
|
1.54 |
|
Expenses,
net of waivers and reimbursements |
|
|
1.33 |
|
|
|
1.50 |
|
|
|
1.50 |
|
|
|
1.50 |
|
|
|
1.50 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
(0.83 |
) |
|
|
(1.08 |
) |
|
|
(1.24 |
) |
|
|
(1.10 |
) |
|
|
(0.92 |
) |
Net
investment income (loss), net of waivers and reimbursements |
|
|
(0.70 |
) |
|
|
(1.03 |
) |
|
|
(1.18 |
) |
|
|
(1.02 |
) |
|
|
(0.88 |
) |
Class
N net assets at the end of the year (in thousands) |
|
$ |
122,370 |
|
|
$ |
114,324 |
|
|
$ |
179,739 |
|
|
$ |
180,635 |
|
|
$ |
180,706 |
|
Portfolio
turnover rate (%) |
|
|
55 |
|
|
|
45 |
|
|
|
49 |
|
|
|
71 |
|
|
|
51 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class I |
|
|
|
Years Ended December
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
28.49 |
|
|
$ |
37.52 |
|
|
$ |
39.36 |
|
|
$ |
31.19 |
|
|
$ |
25.99 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
(0.13 |
) |
|
|
(0.24 |
) |
|
|
(0.41 |
) |
|
|
(0.24 |
) |
|
|
(0.19 |
) |
Net
realized and unrealized gain (loss) on investments |
|
|
4.78 |
|
|
|
(7.78 |
) |
|
|
5.27 |
|
|
|
12.24 |
|
|
|
6.03 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
4.65 |
|
|
|
(8.02 |
) |
|
|
4.86 |
|
|
|
12.00 |
|
|
|
5.84 |
|
Less
distributions from: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net
realized gain |
|
|
0.50 |
|
|
|
1.01 |
|
|
|
6.70 |
|
|
|
3.83 |
|
|
|
0.64 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
0.50 |
|
|
|
1.01 |
|
|
|
6.70 |
|
|
|
3.83 |
|
|
|
0.64 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
32.64 |
|
|
$ |
28.49 |
|
|
$ |
37.52 |
|
|
$ |
39.36 |
|
|
$ |
31.19 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%) |
|
|
16.35 |
|
|
|
(21.39 |
) |
|
|
13.22 |
|
|
|
38.68 |
|
|
|
22.51 |
|
Ratios
to average daily net assets (%): |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
1.18 |
|
|
|
1.28 |
|
|
|
1.25 |
|
|
|
1.30 |
|
|
|
1.27 |
|
Expenses,
net of waivers and reimbursements |
|
|
1.07 |
|
|
|
1.25 |
|
|
|
1.25 |
|
|
|
1.25 |
|
|
|
1.25 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
(0.54 |
) |
|
|
(0.81 |
) |
|
|
(0.93 |
) |
|
|
(0.82 |
) |
|
|
(0.65 |
) |
Net
investment income (loss), net of waivers and reimbursements |
|
|
(0.43 |
) |
|
|
(0.78 |
) |
|
|
(0.93 |
) |
|
|
(0.77 |
) |
|
|
(0.63 |
) |
Class
I net assets at the end of the year (in thousands) |
|
$ |
445,483 |
|
|
$ |
303,016 |
|
|
$ |
402,629 |
|
|
$ |
390,511 |
|
|
$ |
423,881 |
|
Portfolio
turnover rate (%) |
|
|
55 |
|
|
|
45 |
|
|
|
49 |
|
|
|
71 |
|
|
|
51 |
|
165
Small
Cap Growth Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class R6 |
|
|
|
Years Ended December
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019(a) |
|
Net
asset value, beginning of year |
|
$ |
28.57 |
|
|
$ |
37.60 |
|
|
$ |
39.40 |
|
|
$ |
31.20 |
|
|
$ |
31.00 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
(0.12 |
) |
|
|
(0.21 |
) |
|
|
(0.37 |
) |
|
|
(0.23 |
) |
|
|
(0.11 |
) |
Net
realized and unrealized gain (loss) on investments |
|
|
4.81 |
|
|
|
(7.81 |
) |
|
|
5.27 |
|
|
|
12.26 |
|
|
|
0.95 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
4.69 |
|
|
|
(8.02 |
) |
|
|
4.90 |
|
|
|
12.03 |
|
|
|
0.84 |
|
Less
distributions from: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net
realized gain |
|
|
0.50 |
|
|
|
1.01 |
|
|
|
6.70 |
|
|
|
3.83 |
|
|
|
0.64 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
0.50 |
|
|
|
1.01 |
|
|
|
6.70 |
|
|
|
3.83 |
|
|
|
0.64 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
32.76 |
|
|
$ |
28.57 |
|
|
$ |
37.60 |
|
|
$ |
39.40 |
|
|
$ |
31.20 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%)* |
|
|
16.44 |
|
|
|
(21.35 |
) |
|
|
13.31 |
|
|
|
38.76 |
|
|
|
2.75 |
|
Ratios
to average daily net assets (%)**: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
1.06 |
|
|
|
1.18 |
|
|
|
1.16 |
|
|
|
1.19 |
|
|
|
1.18 |
|
Expenses,
net of waivers and reimbursements |
|
|
1.02 |
|
|
|
1.18 |
|
|
|
1.16 |
|
|
|
1.19 |
|
|
|
1.18 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
(0.42 |
) |
|
|
(0.70 |
) |
|
|
(0.84 |
) |
|
|
(0.71 |
) |
|
|
(0.51 |
) |
Net
investment income (loss), net of waivers and reimbursements |
|
|
(0.38 |
) |
|
|
(0.70 |
) |
|
|
(0.84 |
) |
|
|
(0.71 |
) |
|
|
(0.51 |
) |
Class
R6 net assets at the end of the year (in thousands) |
|
$ |
180,058 |
|
|
$ |
112,497 |
|
|
$ |
127,710 |
|
|
$ |
103,462 |
|
|
$ |
69,950 |
|
Portfolio
turnover rate (%)* |
|
|
55 |
|
|
|
45 |
|
|
|
49 |
|
|
|
71 |
|
|
|
51 |
|
(a) |
For
the period from May 2, 2019 (Commencement of Operations) to
December 31, 2019. |
* |
Rates
are not annualized for periods less than a year.
|
** |
Rates
are annualized for periods less than a year. |
166
Small
Cap Value Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
|
Years
Ended December 31, |
|
|
Period Ended December 31, |
|
|
Period Ended October 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021(b) |
|
|
2021(a) |
|
Net
asset value, beginning of year |
|
$ |
27.76 |
|
|
$ |
33.63 |
|
|
$ |
33.49 |
|
|
$ |
32.15 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
0.21 |
|
|
|
0.15 |
|
|
|
0.00 |
^ |
|
|
0.05 |
|
Net
realized and unrealized gain (loss) on investments |
|
|
2.72 |
|
|
|
(3.98 |
) |
|
|
1.37 |
|
|
|
1.29 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
2.93 |
|
|
|
(3.83 |
) |
|
|
1.37 |
|
|
|
1.34 |
|
Less
distributions from: |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
0.18 |
|
|
|
0.12 |
|
|
|
— |
|
|
|
— |
|
Net
realized gain |
|
|
0.73 |
|
|
|
1.92 |
|
|
|
1.23 |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
0.91 |
|
|
|
2.04 |
|
|
|
1.23 |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
29.78 |
|
|
$ |
27.76 |
|
|
$ |
33.63 |
|
|
$ |
33.49 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%)* |
|
|
10.59 |
|
|
|
(11.36 |
) |
|
|
4.24 |
|
|
|
4.17 |
|
Ratios
to average daily net assets (%)**: |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
1.11 |
|
|
|
1.15 |
|
|
|
1.26 |
|
|
|
1.17 |
|
Expenses,
net of waivers and reimbursements |
|
|
1.11 |
|
|
|
1.15 |
|
|
|
1.15 |
|
|
|
1.15 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
0.76 |
|
|
|
0.48 |
|
|
|
(0.05 |
) |
|
|
0.51 |
|
Net
investment income (loss), net of waivers and reimbursements |
|
|
0.76 |
|
|
|
0.48 |
|
|
|
0.06 |
|
|
|
0.53 |
|
Class
N net assets at the end of the year (in thousands) |
|
$ |
2,591 |
|
|
$ |
2,648 |
|
|
$ |
3,313 |
|
|
$ |
9,805 |
|
Portfolio
turnover rate (%)* |
|
|
27 |
|
|
|
25 |
|
|
|
7 |
|
|
|
35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class I |
|
|
|
Years
Ended December 31, |
|
|
Period Ended December 31, |
|
|
Years Ended
October 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021(b) |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
27.72 |
|
|
$ |
33.58 |
|
|
$ |
33.52 |
|
|
$ |
23.79 |
|
|
$ |
28.84 |
|
|
$ |
31.53 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
0.28 |
|
|
|
0.22 |
|
|
|
0.03 |
|
|
|
0.18 |
|
|
|
0.09 |
|
|
|
0.18 |
|
Net
realized and unrealized gain (loss) on investments |
|
|
2.72 |
|
|
|
(3.96 |
) |
|
|
1.35 |
|
|
|
12.91 |
|
|
|
(3.89 |
) |
|
|
1.59 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
3.00 |
|
|
|
(3.74 |
) |
|
|
1.38 |
|
|
|
13.09 |
|
|
|
(3.80 |
) |
|
|
1.77 |
|
Less
distributions from: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
0.25 |
|
|
|
0.20 |
|
|
|
0.09 |
|
|
|
0.11 |
|
|
|
0.07 |
|
|
|
0.15 |
|
Net
realized gain |
|
|
0.73 |
|
|
|
1.92 |
|
|
|
1.23 |
|
|
|
3.25 |
|
|
|
1.18 |
|
|
|
4.31 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
0.98 |
|
|
|
2.12 |
|
|
|
1.32 |
|
|
|
3.36 |
|
|
|
1.25 |
|
|
|
4.46 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
29.74 |
|
|
$ |
27.72 |
|
|
$ |
33.58 |
|
|
$ |
33.52 |
|
|
$ |
23.79 |
|
|
$ |
28.84 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%)* |
|
|
10.86 |
|
|
|
(11.12 |
) |
|
|
4.31 |
|
|
|
55.32 |
|
|
|
(13.91 |
) |
|
|
8.60 |
|
Ratios
to average daily net assets (%)**: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
0.92 |
|
|
|
0.94 |
|
|
|
0.82 |
|
|
|
0.86 |
|
|
|
0.89 |
|
|
|
0.93 |
|
Expenses,
net of waivers and reimbursements |
|
|
0.89 |
|
|
|
0.89 |
|
|
|
0.82 |
|
|
|
0.86 |
|
|
|
0.89 |
|
|
|
0.93 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
0.95 |
|
|
|
0.67 |
|
|
|
0.55 |
|
|
|
0.52 |
|
|
|
0.37 |
|
|
|
0.63 |
|
Net
investment income (loss), net of waivers and reimbursements |
|
|
0.98 |
|
|
|
0.72 |
|
|
|
0.55 |
|
|
|
0.52 |
|
|
|
0.37 |
|
|
|
0.63 |
|
Class
I net assets at the end of the year (in thousands) |
|
$ |
813,809 |
|
|
$ |
758,104 |
|
|
$ |
1,059,157 |
|
|
$ |
1,143,150 |
|
|
$ |
1,181,409 |
|
|
$ |
908,831 |
|
Portfolio
turnover rate (%)* |
|
|
27 |
|
|
|
25 |
|
|
|
7 |
|
|
|
35 |
|
|
|
27 |
|
|
|
31 |
|
(a) |
For
the period from July 17, 2021 (Commencement of Operations) to
October 31, 2021. |
(b) |
For
the period from November 1, 2021 to December 31, 2021.
|
* |
Rates
are not annualized for periods less than a year.
|
** |
Rates
are annualized for periods less than a year. |
^ |
Amount
is less than $0.005 per share. |
167
Small
Cap Value Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class R6 |
|
|
|
Years
Ended December 31, |
|
|
Period Ended December 31, |
|
|
Period Ended October 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021(b) |
|
|
2021(a) |
|
Net
asset value, beginning of year |
|
$ |
27.71 |
|
|
$ |
33.58 |
|
|
$ |
33.53 |
|
|
$ |
32.15 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
0.30 |
|
|
|
0.26 |
|
|
|
0.03 |
|
|
|
0.06 |
|
Net
realized and unrealized gain (loss) on investments |
|
|
2.73 |
|
|
|
(3.98 |
) |
|
|
1.35 |
|
|
|
1.32 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
3.03 |
|
|
|
(3.72 |
) |
|
|
1.38 |
|
|
|
1.38 |
|
Less
distributions from: |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
0.28 |
|
|
|
0.23 |
|
|
|
0.10 |
|
|
|
— |
|
Net
realized gain |
|
|
0.73 |
|
|
|
1.92 |
|
|
|
1.23 |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
1.01 |
|
|
|
2.15 |
|
|
|
1.33 |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
29.73 |
|
|
$ |
27.71 |
|
|
$ |
33.58 |
|
|
$ |
33.53 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%)* |
|
|
10.96 |
|
|
|
(11.06 |
) |
|
|
4.33 |
|
|
|
4.26 |
|
Ratios
to average daily net assets (%)**: |
|
|
|
| |
|
|
| |
|
|
| |
|
| |
Expenses |
|
|
0.79 |
|
|
|
0.81 |
|
|
|
0.78 |
|
|
|
0.78 |
|
Net
investment income (loss) |
|
|
1.08 |
|
|
|
0.85 |
|
|
|
0.59 |
|
|
|
0.64 |
|
Class
R6 net assets at the end of the year (in thousands) |
|
$ |
491,646 |
|
|
$ |
453,456 |
|
|
$ |
1,006,928 |
|
|
$ |
867,272 |
|
Portfolio
turnover rate (%)* |
|
|
27 |
|
|
|
25 |
|
|
|
7 |
|
|
|
35 |
|
(a) |
For
the period from July 17, 2021 (Commencement of Operations) to
October 31, 2021. |
(b) |
For
the period from November 1, 2021 to December 31, 2021.
|
* |
Rates
are not annualized for periods less than a year.
|
** |
Rates
are annualized for periods less than a year. |
168
Global
Leaders Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
|
Years Ended December
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
13.24 |
|
|
$ |
19.17 |
|
|
$ |
17.41 |
|
|
$ |
14.92 |
|
|
$ |
11.47 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
(0.02 |
) |
|
|
(0.04 |
) |
|
|
(0.11 |
) |
|
|
(0.06 |
) |
|
|
0.01 |
|
Net
realized and unrealized gain (loss) on investments |
|
|
3.01 |
|
|
|
(5.61 |
) |
|
|
2.96 |
|
|
|
4.74 |
|
|
|
3.61 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
2.99 |
|
|
|
(5.65 |
) |
|
|
2.85 |
|
|
|
4.68 |
|
|
|
3.62 |
|
Less
distributions from: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.03 |
|
Net
realized gain |
|
|
1.02 |
|
|
|
0.28 |
|
|
|
1.09 |
|
|
|
2.19 |
|
|
|
0.14 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
1.02 |
|
|
|
0.28 |
|
|
|
1.09 |
|
|
|
2.19 |
|
|
|
0.17 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
15.21 |
|
|
$ |
13.24 |
|
|
$ |
19.17 |
|
|
$ |
17.41 |
|
|
$ |
14.92 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%) |
|
|
22.67 |
|
|
|
(29.49 |
) |
|
|
16.55 |
|
|
|
31.50 |
|
|
|
31.57 |
|
Ratios
to average daily net assets (%): |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
1.42 |
|
|
|
1.45 |
|
|
|
1.38 |
|
|
|
1.45 |
|
|
|
1.39 |
|
Expenses,
net of waivers and reimbursements |
|
|
1.15 |
|
|
|
1.15 |
|
|
|
1.15 |
|
|
|
1.15 |
|
|
|
1.20 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
(0.43 |
) |
|
|
(0.60 |
) |
|
|
(0.79 |
) |
|
|
(0.67 |
) |
|
|
(0.10 |
) |
Net
investment income (loss), net of waivers and reimbursements |
|
|
(0.16 |
) |
|
|
(0.30 |
) |
|
|
(0.56 |
) |
|
|
(0.37 |
) |
|
|
0.09 |
|
Class
N net assets at the end of the year (in thousands) |
|
$ |
8,253 |
|
|
$ |
8,317 |
|
|
$ |
13,709 |
|
|
$ |
11,861 |
|
|
$ |
8,910 |
|
Portfolio
turnover rate (%) |
|
|
36 |
|
|
|
15 |
|
|
|
18 |
|
|
|
27 |
|
|
|
27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class I |
|
|
|
Years Ended December
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
13.35 |
|
|
$ |
19.28 |
|
|
$ |
17.47 |
|
|
$ |
14.93 |
|
|
$ |
11.47 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
0.01 |
|
|
|
(0.01 |
) |
|
|
(0.06 |
) |
|
|
(0.01 |
) |
|
|
0.05 |
|
Net
realized and unrealized gain (loss) on investments |
|
|
3.05 |
|
|
|
(5.63 |
) |
|
|
2.96 |
|
|
|
4.74 |
|
|
|
3.61 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
3.06 |
|
|
|
(5.64 |
) |
|
|
2.90 |
|
|
|
4.73 |
|
|
|
3.66 |
|
Less
distributions from: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
0.01 |
|
|
|
0.01 |
|
|
|
— |
|
|
|
0.00 |
^ |
|
|
0.06 |
|
Net
realized gain |
|
|
1.02 |
|
|
|
0.28 |
|
|
|
1.09 |
|
|
|
2.19 |
|
|
|
0.14 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
1.03 |
|
|
|
0.29 |
|
|
|
1.09 |
|
|
|
2.19 |
|
|
|
0.20 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
15.38 |
|
|
$ |
13.35 |
|
|
$ |
19.28 |
|
|
$ |
17.47 |
|
|
$ |
14.93 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%) |
|
|
22.99 |
|
|
|
(29.28 |
) |
|
|
16.78 |
|
|
|
31.86 |
|
|
|
31.96 |
|
Ratios
to average daily net assets (%): |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
1.14 |
|
|
|
1.12 |
|
|
|
1.07 |
|
|
|
1.12 |
|
|
|
1.07 |
|
Expenses,
net of waivers and reimbursements |
|
|
0.90 |
|
|
|
0.90 |
|
|
|
0.90 |
|
|
|
0.90 |
|
|
|
0.95 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
(0.17 |
) |
|
|
(0.27 |
) |
|
|
(0.49 |
) |
|
|
(0.31 |
) |
|
|
0.22 |
|
Net
investment income (loss), net of waivers and reimbursements |
|
|
0.07 |
|
|
|
(0.05 |
) |
|
|
(0.32 |
) |
|
|
(0.09 |
) |
|
|
0.34 |
|
Class
I net assets at the end of the year (in thousands) |
|
$ |
76,915 |
|
|
$ |
69,987 |
|
|
$ |
124,488 |
|
|
$ |
107,375 |
|
|
$ |
114,666 |
|
Portfolio
turnover rate (%) |
|
|
36 |
|
|
|
15 |
|
|
|
18 |
|
|
|
27 |
|
|
|
27 |
|
^ |
Amount
is less than $0.005 per share. |
169
Global
Leaders Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class R6 |
|
|
|
Years Ended December
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
13.35 |
|
|
$ |
19.30 |
|
|
$ |
17.47 |
|
|
$ |
14.93 |
|
|
$ |
11.47 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
0.02 |
|
|
|
(0.01 |
) |
|
|
(0.05 |
) |
|
|
0.02 |
|
|
|
0.06 |
|
Net
realized and unrealized gain (loss) on investments |
|
|
3.05 |
|
|
|
(5.64 |
) |
|
|
2.97 |
|
|
|
4.72 |
|
|
|
3.61 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
3.07 |
|
|
|
(5.65 |
) |
|
|
2.92 |
|
|
|
4.74 |
|
|
|
3.67 |
|
Less
distributions from: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
0.01 |
|
|
|
0.02 |
|
|
|
— |
|
|
|
0.01 |
|
|
|
0.07 |
|
Net
realized gain |
|
|
1.02 |
|
|
|
0.28 |
|
|
|
1.09 |
|
|
|
2.19 |
|
|
|
0.14 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
1.03 |
|
|
|
0.30 |
|
|
|
1.09 |
|
|
|
2.20 |
|
|
|
0.21 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
15.39 |
|
|
$ |
13.35 |
|
|
$ |
19.30 |
|
|
$ |
17.47 |
|
|
$ |
14.93 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%) |
|
|
23.13 |
|
|
|
(29.30 |
) |
|
|
16.90 |
|
|
|
31.91 |
|
|
|
32.02 |
|
Ratios
to average daily net assets (%): |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
1.05 |
|
|
|
1.05 |
|
|
|
0.99 |
|
|
|
1.06 |
|
|
|
1.01 |
|
Expenses,
net of waivers and reimbursements |
|
|
0.85 |
|
|
|
0.85 |
|
|
|
0.85 |
|
|
|
0.85 |
|
|
|
0.90 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
(0.08 |
) |
|
|
(0.30 |
) |
|
|
(0.40 |
) |
|
|
(0.10 |
) |
|
|
0.32 |
|
Net
investment income (loss), net of waivers and reimbursements |
|
|
0.12 |
|
|
|
(0.10 |
) |
|
|
(0.26 |
) |
|
|
0.11 |
|
|
|
0.43 |
|
Class
R6 net assets at the end of the year (in thousands) |
|
$ |
15,287 |
|
|
$ |
13,255 |
|
|
$ |
5,585 |
|
|
$ |
2,946 |
|
|
$ |
48,133 |
|
Portfolio
turnover rate (%) |
|
|
36 |
|
|
|
15 |
|
|
|
18 |
|
|
|
27 |
|
|
|
27 |
|
170
International
Leaders Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
|
Years Ended December
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
17.28 |
|
|
$ |
24.28 |
|
|
$ |
22.69 |
|
|
$ |
18.08 |
|
|
$ |
13.80 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
0.05 |
|
|
|
0.04 |
|
|
|
(0.12 |
) |
|
|
(0.04 |
) |
|
|
0.09 |
|
Net
realized and unrealized gain (loss) on investments |
|
|
2.16 |
|
|
|
(7.01 |
) |
|
|
2.35 |
|
|
|
4.82 |
|
|
|
4.25 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
2.21 |
|
|
|
(6.97 |
) |
|
|
2.23 |
|
|
|
4.78 |
|
|
|
4.34 |
|
Less
distributions from: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
0.04 |
|
|
|
— |
|
|
|
0.00 |
^ |
|
|
— |
|
|
|
0.06 |
|
Net
realized gain |
|
|
— |
|
|
|
0.03 |
|
|
|
0.64 |
|
|
|
0.17 |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
0.04 |
|
|
|
0.03 |
|
|
|
0.64 |
|
|
|
0.17 |
|
|
|
0.06 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
19.45 |
|
|
$ |
17.28 |
|
|
$ |
24.28 |
|
|
$ |
22.69 |
|
|
$ |
18.08 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%) |
|
|
12.77 |
|
|
|
(28.70 |
) |
|
|
9.93 |
|
|
|
26.45 |
|
|
|
31.46 |
|
Ratios
to average daily net assets (%): |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
1.26 |
|
|
|
1.26 |
|
|
|
1.30 |
|
|
|
1.31 |
|
|
|
1.32 |
|
Expenses,
net of waivers and reimbursements |
|
|
1.15 |
|
|
|
1.15 |
|
|
|
1.15 |
|
|
|
1.15 |
|
|
|
1.18 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
0.17 |
|
|
|
0.09 |
|
|
|
(0.65 |
) |
|
|
(0.39 |
) |
|
|
0.44 |
|
Net
investment income (loss), net of waivers and reimbursements |
|
|
0.28 |
|
|
|
0.20 |
|
|
|
(0.50 |
) |
|
|
(0.23 |
) |
|
|
0.58 |
|
Class
N net assets at the end of the year (in thousands) |
|
$ |
34,162 |
|
|
$ |
35,966 |
|
|
$ |
47,234 |
|
|
$ |
19,586 |
|
|
$ |
11,163 |
|
Portfolio
turnover rate (%) |
|
|
50 |
|
|
|
55 |
|
|
|
18 |
|
|
|
34 |
|
|
|
20 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class I |
|
|
|
Years Ended December
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
17.41 |
|
|
$ |
24.41 |
|
|
$ |
22.80 |
|
|
$ |
18.13 |
|
|
$ |
13.84 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
0.10 |
|
|
|
0.08 |
|
|
|
(0.06 |
) |
|
|
(0.00 |
)^ |
|
|
0.12 |
|
Net
realized and unrealized gain (loss) on investments |
|
|
2.18 |
|
|
|
(7.05 |
) |
|
|
2.36 |
|
|
|
4.85 |
|
|
|
4.27 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
2.28 |
|
|
|
(6.97 |
) |
|
|
2.30 |
|
|
|
4.85 |
|
|
|
4.39 |
|
Less
distributions from: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
0.09 |
|
|
|
— |
| |
|
0.05 |
|
|
|
0.01 |
|
|
|
0.10 |
|
Net
realized gain |
|
|
— |
| |
|
0.03 |
|
|
|
0.64 |
|
|
|
0.17 |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
0.09 |
|
|
|
0.03 |
|
|
|
0.69 |
|
|
|
0.18 |
|
|
|
0.10 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
19.60 |
|
|
$ |
17.41 |
|
|
$ |
24.41 |
|
|
$ |
22.80 |
|
|
$ |
18.13 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%) |
|
|
13.09 |
|
|
|
(28.55 |
) |
|
|
10.17 |
|
|
|
26.77 |
|
|
|
31.76 |
|
Ratios
to average daily net assets (%): |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
1.04 |
|
|
|
1.04 |
|
|
|
0.99 |
|
|
|
1.01 |
|
|
|
1.01 |
|
Expenses,
net of waivers and reimbursements |
|
|
0.90 |
|
|
|
0.90 |
|
|
|
0.90 |
|
|
|
0.90 |
|
|
|
0.93 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
0.39 |
|
|
|
0.28 |
|
|
|
(0.33 |
) |
|
|
(0.11 |
) |
|
|
0.64 |
|
Net
investment income (loss), net of waivers and reimbursements |
|
|
0.53 |
|
|
|
0.42 |
|
|
|
(0.24 |
) |
|
|
(0.00 |
) |
|
|
0.72 |
|
Class
I net assets at the end of the year (in thousands) |
|
$ |
413,373 |
|
|
$ |
369,171 |
|
|
$ |
591,500 |
|
|
$ |
393,596 |
|
|
$ |
181,617 |
|
Portfolio
turnover rate (%) |
|
|
50 |
|
|
|
55 |
|
|
|
18 |
|
|
|
34 |
|
|
|
20 |
|
^ |
Amount
is less than $0.005 per share. |
171
International
Leaders Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class R6 |
|
|
|
Years Ended December
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
17.42 |
|
|
$ |
24.41 |
|
|
$ |
22.80 |
|
|
$ |
18.12 |
|
|
$ |
13.83 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
0.11 |
|
|
|
0.09 |
|
|
|
(0.04 |
) |
|
|
0.02 |
|
|
|
0.14 |
|
Net
realized and unrealized gain (loss) on investments |
|
|
2.19 |
|
|
|
(7.05 |
) |
|
|
2.35 |
|
|
|
4.85 |
|
|
|
4.26 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
2.30 |
|
|
|
(6.96 |
) |
|
|
2.31 |
|
|
|
4.87 |
|
|
|
4.40 |
|
Less
distributions from: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
0.10 |
|
|
|
— |
|
|
|
0.06 |
|
|
|
0.02 |
|
|
|
0.11 |
|
Net
realized gain |
|
|
— |
|
|
|
0.03 |
|
|
|
0.64 |
|
|
|
0.17 |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
0.10 |
|
|
|
0.03 |
|
|
|
0.70 |
|
|
|
0.19 |
|
|
|
0.11 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
19.62 |
|
|
$ |
17.42 |
|
|
$ |
24.41 |
|
|
$ |
22.80 |
|
|
$ |
18.12 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%) |
|
|
13.20 |
|
|
|
(28.51 |
) |
|
|
10.22 |
|
|
|
26.88 |
|
|
|
31.83 |
|
Ratios
to average daily net assets (%): |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
0.91 |
|
|
|
0.92 |
|
|
|
0.91 |
|
|
|
0.92 |
|
|
|
0.93 |
|
Expenses,
net of waivers and reimbursements |
|
|
0.85 |
|
|
|
0.85 |
|
|
|
0.85 |
|
|
|
0.85 |
|
|
|
0.88 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
0.52 |
|
|
|
0.44 |
|
|
|
(0.24 |
) |
|
|
0.03 |
|
|
|
0.80 |
|
Net
investment income (loss), net of waivers and reimbursements |
|
|
0.58 |
|
|
|
0.51 |
|
|
|
(0.18 |
) |
|
|
0.10 |
|
|
|
0.85 |
|
Class
R6 net assets at the end of the year (in thousands) |
|
$ |
636,401 |
|
|
$ |
599,084 |
|
|
$ |
667,996 |
|
|
$ |
687,171 |
|
|
$ |
461,124 |
|
Portfolio
turnover rate (%) |
|
|
50 |
|
|
|
55 |
|
|
|
18 |
|
|
|
34 |
|
|
|
20 |
|
172
International
Growth Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
|
Years Ended December
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
24.92 |
|
|
$ |
37.57 |
|
|
$ |
38.75 |
|
|
$ |
29.68 |
|
|
$ |
23.04 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
0.14 |
|
|
|
0.11 |
|
|
|
(0.28 |
) |
|
|
(0.16 |
) |
|
|
0.09 |
|
Net
realized and unrealized gain (loss) on investments |
|
|
3.61 |
|
|
|
(10.78 |
) |
|
|
3.51 |
|
|
|
9.55 |
|
|
|
6.87 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
3.75 |
|
|
|
(10.67 |
) |
|
|
3.23 |
|
|
|
9.39 |
|
|
|
6.96 |
|
Less
distributions from: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
0.19 |
|
|
|
0.02 |
|
|
|
— |
|
|
|
0.06 |
|
|
|
0.32 |
|
Net
realized gain |
|
|
0.75 |
|
|
|
1.96 |
|
|
|
4.41 |
|
|
|
0.26 |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
0.94 |
|
|
|
1.98 |
|
|
|
4.41 |
|
|
|
0.32 |
|
|
|
0.32 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
27.73 |
|
|
$ |
24.92 |
|
|
$ |
37.57 |
|
|
$ |
38.75 |
|
|
$ |
29.68 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%) |
|
|
15.12 |
|
|
|
(28.51 |
) |
|
|
8.68 |
|
|
|
31.64 |
|
|
|
30.24 |
|
Ratios
to average daily net assets (%): |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
1.39 |
|
|
|
1.40 |
|
|
|
1.46 |
|
|
|
1.47 |
|
|
|
1.45 |
|
Expenses,
net of waivers and reimbursements |
|
|
1.24 |
|
|
|
1.31 |
|
|
|
1.45 |
|
|
|
1.45 |
|
|
|
1.45 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
0.36 |
|
|
|
0.30 |
|
|
|
(0.68 |
) |
|
|
(0.56 |
) |
|
|
0.34 |
|
Net
investment income (loss), net of waivers and reimbursements |
|
|
0.51 |
|
|
|
0.39 |
|
|
|
(0.67 |
) |
|
|
(0.54 |
) |
|
|
0.34 |
|
Class
N net assets at the end of the year (in thousands) |
|
$ |
292,273 |
|
|
$ |
301,485 |
|
|
$ |
293,481 |
|
|
$ |
288,976 |
|
|
$ |
494,788 |
|
Portfolio
turnover rate (%) |
|
|
42 |
|
|
|
50 |
|
|
|
19 |
|
|
|
27 |
|
|
|
34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class I |
|
|
|
Years Ended December
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
25.74 |
|
|
$ |
38.68 |
|
|
$ |
39.65 |
|
|
$ |
30.38 |
|
|
$ |
23.56 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
0.21 |
|
|
|
0.24 |
|
|
|
(0.15 |
) |
|
|
(0.08 |
) |
|
|
0.18 |
|
Net
realized and unrealized gain (loss) on investments |
|
|
3.73 |
|
|
|
(11.16 |
) |
|
|
3.59 |
|
|
|
9.79 |
|
|
|
7.03 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
3.94 |
|
|
|
(10.92 |
) |
|
|
3.44 |
|
|
|
9.71 |
|
|
|
7.21 |
|
Less
distributions from: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
0.26 |
|
|
|
0.06 |
|
|
|
— |
|
|
|
0.18 |
|
|
|
0.39 |
|
Net
realized gain |
|
|
0.75 |
|
|
|
1.96 |
|
|
|
4.41 |
|
|
|
0.26 |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
1.01 |
|
|
|
2.02 |
|
|
|
4.41 |
|
|
|
0.44 |
|
|
|
0.39 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
28.67 |
|
|
$ |
25.74 |
|
|
$ |
38.68 |
|
|
$ |
39.65 |
|
|
$ |
30.38 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%) |
|
|
15.38 |
|
|
|
(28.33 |
) |
|
|
9.01 |
|
|
|
31.99 |
|
|
|
30.66 |
|
Ratios
to average daily net assets (%): |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
1.10 |
|
|
|
1.12 |
|
|
|
1.14 |
|
|
|
1.16 |
|
|
|
1.14 |
|
Expenses,
net of waivers and reimbursements |
|
|
0.99 |
|
|
|
1.06 |
|
|
|
1.14 |
|
|
|
1.16 |
|
|
|
1.14 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
0.65 |
|
|
|
0.76 |
|
|
|
(0.36 |
) |
|
|
(0.24 |
) |
|
|
0.65 |
|
Net
investment income (loss), net of waivers and reimbursements |
|
|
0.76 |
|
|
|
0.82 |
|
|
|
(0.36 |
) |
|
|
(0.24 |
) |
|
|
0.65 |
|
Class
I net assets at the end of the year (in thousands) |
|
$ |
992,759 |
|
|
$ |
981,813 |
|
|
$ |
1,702,775 |
|
|
$ |
1,914,460 |
|
|
$ |
1,552,355 |
|
Portfolio
turnover rate (%) |
|
|
42 |
|
|
|
50 |
|
|
|
19 |
|
|
|
27 |
|
|
|
34 |
|
173
International
Growth Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class R6 |
|
|
|
Years Ended December
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019(a) |
|
Net
asset value, beginning of year |
|
$ |
25.76 |
|
|
$ |
38.72 |
|
|
$ |
39.66 |
|
|
$ |
30.37 |
|
|
$ |
27.56 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
0.23 |
|
|
|
0.21 |
|
|
|
(0.11 |
) |
|
|
(0.07 |
) |
|
|
(0.05 |
) |
Net
realized and unrealized gain (loss) on investments |
|
|
3.73 |
|
|
|
(11.13 |
) |
|
|
3.58 |
|
|
|
9.83 |
|
|
|
3.27 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
3.96 |
|
|
|
(10.92 |
) |
|
|
3.47 |
|
|
|
9.76 |
|
|
|
3.22 |
|
Less
distributions from: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
0.27 |
|
|
|
0.08 |
|
|
|
— |
|
|
|
0.21 |
|
|
|
0.41 |
|
Net
realized gain |
|
|
0.75 |
|
|
|
1.96 |
|
|
|
4.41 |
|
|
|
0.26 |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
1.02 |
|
|
|
2.04 |
|
|
|
4.41 |
|
|
|
0.47 |
|
|
|
0.41 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
28.70 |
|
|
$ |
25.76 |
|
|
$ |
38.72 |
|
|
$ |
39.66 |
|
|
$ |
30.37 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%)* |
|
|
15.47 |
|
|
|
(28.30 |
) |
|
|
9.09 |
|
|
|
32.16 |
|
|
|
11.71 |
|
Ratios
to average daily net assets (%)**: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
1.00 |
|
|
|
1.03 |
|
|
|
1.06 |
|
|
|
1.07 |
|
|
|
1.06 |
|
Expenses,
net of waivers and reimbursements |
|
|
0.94 |
|
|
|
1.01 |
|
|
|
1.06 |
|
|
|
1.07 |
|
|
|
1.06 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
0.76 |
|
|
|
0.69 |
|
|
|
(0.25 |
) |
|
|
(0.23 |
) |
|
|
(0.26 |
) |
Net
investment income (loss), net of waivers and reimbursements |
|
|
0.82 |
|
|
|
0.71 |
|
|
|
(0.25 |
) |
|
|
(0.23 |
) |
|
|
(0.26 |
) |
Class
R6 net assets at the end of the year (in thousands) |
|
$ |
146,072 |
|
|
$ |
151,338 |
|
|
$ |
126,641 |
|
|
$ |
109,214 |
|
|
$ |
61,916 |
|
Portfolio
turnover rate (%)* |
|
|
42 |
|
|
|
50 |
|
|
|
19 |
|
|
|
27 |
|
|
|
34 |
|
(a) |
For
the period from May 2, 2019 (Commencement of Operations) to
December 31, 2019. |
* |
Rates
are not annualized for periods less than a year.
|
** |
Rates
are annualized for periods less than a year. |
174
Institutional
International Growth Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Institutional |
|
|
|
Years Ended December
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
12.82 |
|
|
$ |
19.03 |
|
|
$ |
20.37 |
|
|
$ |
17.35 |
|
|
$ |
13.40 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
0.09 |
|
|
|
0.11 |
|
|
|
(0.05 |
) |
|
|
(0.01 |
) |
|
|
0.12 |
|
Net
realized and unrealized gain (loss) on investments |
|
|
1.85 |
|
|
|
(5.47 |
) |
|
|
1.86 |
|
|
|
5.60 |
|
|
|
4.00 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
1.94 |
|
|
|
(5.36 |
) |
|
|
1.81 |
|
|
|
5.59 |
|
|
|
4.12 |
|
Less
distributions from: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
0.13 |
|
|
|
0.06 |
|
|
|
— |
|
|
|
0.02 |
|
|
|
0.17 |
|
Net
realized gain |
|
|
0.23 |
|
|
|
0.79 |
|
|
|
3.15 |
|
|
|
2.55 |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
0.36 |
|
|
|
0.85 |
|
|
|
3.15 |
|
|
|
2.57 |
|
|
|
0.17 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
14.40 |
|
|
$ |
12.82 |
|
|
$ |
19.03 |
|
|
$ |
20.37 |
|
|
$ |
17.35 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%) |
|
|
15.20 |
|
|
|
(28.28 |
) |
|
|
9.39 |
|
|
|
32.47 |
|
|
|
30.75 |
|
Ratios
to average daily net assets (%): |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
1.00 |
|
|
|
1.01 |
|
|
|
1.01 |
|
|
|
1.00 |
|
|
|
0.99 |
|
Expenses,
net of waivers and reimbursements |
|
|
0.94 |
|
|
|
0.98 |
|
|
|
1.01 |
|
|
|
1.00 |
|
|
|
0.99 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
0.61 |
|
|
|
0.71 |
|
|
|
(0.22 |
) |
|
|
(0.04 |
) |
|
|
0.77 |
|
Net
investment income (loss), net of waivers and reimbursements |
|
|
0.67 |
|
|
|
0.74 |
|
|
|
(0.22 |
) |
|
|
(0.04 |
) |
|
|
0.77 |
|
Net
assets at the end of the year (in thousands) |
|
$ |
929,474 |
|
|
$ |
908,732 |
|
|
$ |
1,281,843 |
|
|
$ |
1,326,482 |
|
|
$ |
1,892,911 |
|
Portfolio
turnover rate (%) |
|
|
44 |
|
|
|
55 |
|
|
|
19 |
|
|
|
31 |
|
|
|
35 |
|
175
International
Small Cap Growth Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
|
Years Ended December
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
10.74 |
|
|
$ |
16.56 |
|
|
$ |
17.45 |
|
|
$ |
13.85 |
|
|
$ |
10.36 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
0.04 |
|
|
|
0.00 |
^ |
|
|
(0.12 |
) |
|
|
(0.05 |
) |
|
|
0.05 |
|
Net
realized and unrealized gain (loss) on investments |
|
|
1.51 |
|
|
|
(5.82 |
) |
|
|
1.91 |
|
|
|
4.01 |
|
|
|
3.45 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
1.55 |
|
|
|
(5.82 |
) |
|
|
1.79 |
|
|
|
3.96 |
|
|
|
3.50 |
|
Less
distributions from: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
0.08 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
Net
realized gain |
|
|
— |
|
|
|
— |
|
|
|
2.68 |
|
|
|
0.36 |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
0.08 |
|
|
|
— |
|
|
|
2.68 |
|
|
|
0.36 |
|
|
|
0.01 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
12.21 |
|
|
$ |
10.74 |
|
|
$ |
16.56 |
|
|
$ |
17.45 |
|
|
$ |
13.85 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%) |
|
|
14.42 |
|
|
|
(35.14 |
) |
|
|
10.87 |
|
|
|
28.68 |
|
|
|
33.81 |
|
Ratios
to average daily net assets (%): |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
1.53 |
|
|
|
1.49 |
|
|
|
1.46 |
|
|
|
1.52 |
|
|
|
1.48 |
|
Expenses,
net of waivers and reimbursements |
|
|
1.42 |
|
|
|
1.49 |
|
|
|
1.46 |
|
|
|
1.52 |
|
|
|
1.48 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
0.28 |
|
|
|
0.04 |
|
|
|
(0.67 |
) |
|
|
(0.36 |
) |
|
|
0.45 |
|
Net
investment income (loss), net of waivers and reimbursements |
|
|
0.39 |
|
|
|
0.04 |
|
|
|
(0.67 |
) |
|
|
(0.36 |
) |
|
|
0.45 |
|
Class
N net assets at the end of the year (in thousands) |
|
$ |
1,547 |
|
|
$ |
1,638 |
|
|
$ |
3,540 |
|
|
$ |
3,101 |
|
|
$ |
3,650 |
|
Portfolio
turnover rate (%) |
|
|
37 |
|
|
|
51 |
|
|
|
52 |
|
|
|
63 |
|
|
|
38 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class I |
|
|
|
Years Ended December
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
10.90 |
|
|
$ |
16.80 |
|
|
$ |
17.66 |
|
|
$ |
13.98 |
|
|
$ |
10.45 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
0.07 |
|
|
|
0.03 |
|
|
|
(0.07 |
) |
|
|
(0.01 |
) |
|
|
0.09 |
|
Net
realized and unrealized gain (loss) on investments |
|
|
1.54 |
|
|
|
(5.91 |
) |
|
|
1.93 |
|
|
|
4.06 |
|
|
|
3.48 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
1.61 |
|
|
|
(5.88 |
) |
|
|
1.86 |
|
|
|
4.05 |
|
|
|
3.57 |
|
Less
distributions from: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
0.11 |
|
|
|
0.02 |
|
|
|
0.04 |
|
|
|
0.01 |
|
|
|
0.04 |
|
Net
realized gain |
|
|
— |
|
|
|
— |
|
|
|
2.68 |
|
|
|
0.36 |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
0.11 |
|
|
|
0.02 |
|
|
|
2.72 |
|
|
|
0.37 |
|
|
|
0.04 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
12.40 |
|
|
$ |
10.90 |
|
|
$ |
16.80 |
|
|
$ |
17.66 |
|
|
$ |
13.98 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%) |
|
|
14.70 |
|
|
|
(34.99 |
) |
|
|
11.17 |
|
|
|
29.04 |
|
|
|
34.22 |
|
Ratios
to average daily net assets (%): |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
1.25 |
|
|
|
1.23 |
|
|
|
1.19 |
|
|
|
1.25 |
|
|
|
1.21 |
|
Expenses,
net of waivers and reimbursements |
|
|
1.17 |
|
|
|
1.23 |
|
|
|
1.19 |
|
|
|
1.25 |
|
|
|
1.21 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
0.54 |
|
|
|
0.28 |
|
|
|
(0.40 |
) |
|
|
(0.05 |
) |
|
|
0.75 |
|
Net
investment income (loss), net of waivers and reimbursements |
|
|
0.62 |
|
|
|
0.28 |
|
|
|
(0.40 |
) |
|
|
(0.05 |
) |
|
|
0.75 |
|
Class
I net assets at the end of the year (in thousands) |
|
$ |
103,520 |
|
|
$ |
98,330 |
|
|
$ |
136,573 |
|
|
$ |
145,283 |
|
|
$ |
142,951 |
|
Portfolio
turnover rate (%) |
|
|
37 |
|
|
|
51 |
|
|
|
52 |
|
|
|
63 |
|
|
|
38 |
|
^ |
Amount
is less than $0.005 per share. |
176
International
Small Cap Growth Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class R6 |
|
|
|
Years Ended December
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
10.97 |
|
|
$ |
16.91 |
|
|
$ |
17.76 |
|
|
$ |
14.05 |
|
|
$ |
10.50 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
0.08 |
|
|
|
0.05 |
|
|
|
(0.06 |
) |
|
|
0.00 |
^ |
|
|
0.11 |
|
Net
realized and unrealized gain (loss) on investments |
|
|
1.54 |
|
|
|
(5.96 |
) |
|
|
1.95 |
|
|
|
4.09 |
|
|
|
3.49 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
1.62 |
|
|
|
(5.91 |
) |
|
|
1.89 |
|
|
|
4.09 |
|
|
|
3.60 |
|
Less
distributions from: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
0.12 |
|
|
|
0.03 |
|
|
|
0.06 |
|
|
|
0.02 |
|
|
|
0.05 |
|
Net
realized gain |
|
|
— |
|
|
|
— |
|
|
|
2.68 |
|
|
|
0.36 |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
0.12 |
|
|
|
0.03 |
|
|
|
2.74 |
|
|
|
0.38 |
|
|
|
0.05 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
12.47 |
|
|
$ |
10.97 |
|
|
$ |
16.91 |
|
|
$ |
17.76 |
|
|
$ |
14.05 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%) |
|
|
14.76 |
|
|
|
(34.94 |
) |
|
|
11.27 |
|
|
|
29.23 |
|
|
|
34.32 |
|
Ratios
to average daily net assets (%): |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
1.15 |
|
|
|
1.14 |
|
|
|
1.10 |
|
|
|
1.14 |
|
|
|
1.12 |
|
Expenses,
net of waivers and reimbursements |
|
|
1.12 |
|
|
|
1.14 |
|
|
|
1.10 |
|
|
|
1.14 |
|
|
|
1.12 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
0.64 |
|
|
|
0.38 |
|
|
|
(0.31 |
) |
|
|
0.02 |
|
|
|
0.86 |
|
Net
investment income (loss), net of waivers and reimbursements |
|
|
0.67 |
|
|
|
0.38 |
|
|
|
(0.31 |
) |
|
|
0.02 |
|
|
|
0.86 |
|
Class
R6 net assets at the end of the year (in thousands) |
|
$ |
135,679 |
|
|
$ |
134,982 |
|
|
$ |
243,398 |
|
|
$ |
188,497 |
|
|
$ |
162,465 |
|
Portfolio
turnover rate (%) |
|
|
37 |
|
|
|
51 |
|
|
|
52 |
|
|
|
63 |
|
|
|
38 |
|
^ |
Amount
is less than $0.005 per share. |
177
Emerging
Markets Leaders Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
|
Years Ended December
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
8.29 |
|
|
$ |
11.33 |
|
|
$ |
13.26 |
|
|
$ |
10.51 |
|
|
$ |
8.26 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
0.05 |
|
|
|
0.02 |
|
|
|
(0.06 |
) |
|
|
(0.02 |
) |
|
|
0.03 |
|
Net
realized and unrealized gain (loss) on investments |
|
|
0.43 |
|
|
|
(2.98 |
) |
|
|
(0.98 |
) |
|
|
2.88 |
|
|
|
2.28 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
0.48 |
|
|
|
(2.96 |
) |
|
|
(1.04 |
) |
|
|
2.86 |
|
|
|
2.31 |
|
Less
distributions from: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
0.05 |
|
|
|
— |
|
|
|
0.01 |
|
|
|
— |
|
|
|
0.04 |
|
Net
realized gain |
|
|
— |
|
|
|
0.08 |
|
|
|
0.88 |
|
|
|
0.11 |
|
|
|
0.02 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
0.05 |
|
|
|
0.08 |
|
|
|
0.89 |
|
|
|
0.11 |
|
|
|
0.06 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
8.72 |
|
|
$ |
8.29 |
|
|
$ |
11.33 |
|
|
$ |
13.26 |
|
|
$ |
10.51 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%) |
|
|
5.85 |
|
|
|
(26.11 |
) |
|
|
(7.69 |
) |
|
|
27.23 |
|
|
|
27.98 |
|
Ratios
to average daily net assets (%): |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
1.46 |
|
|
|
1.48 |
|
|
|
1.56 |
|
|
|
1.63 |
|
|
|
1.62 |
|
Expenses,
net of waivers and reimbursements |
|
|
1.24 |
|
|
|
1.29 |
|
|
|
1.40 |
|
|
|
1.40 |
|
|
|
1.45 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
0.41 |
|
|
|
0.05 |
|
|
|
(0.64 |
) |
|
|
(0.45 |
) |
|
|
0.17 |
|
Net
investment income (loss), net of waivers and reimbursements |
|
|
0.63 |
|
|
|
0.24 |
|
|
|
(0.48 |
) |
|
|
(0.22 |
) |
|
|
0.34 |
|
Class
N net assets at the end of the year (in thousands) |
|
$ |
1,007 |
|
|
$ |
1,092 |
|
|
$ |
2,096 |
|
|
$ |
1,803 |
|
|
$ |
1,856 |
|
Portfolio
turnover rate (%) |
|
|
44 |
|
|
|
42 |
|
|
|
40 |
|
|
|
47 |
|
|
|
33 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class I |
|
|
|
Years Ended December
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
8.32 |
|
|
$ |
11.33 |
|
|
$ |
13.28 |
|
|
$ |
10.52 |
|
|
$ |
8.27 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
0.09 |
|
|
|
0.06 |
|
|
|
(0.04 |
) |
|
|
(0.00 |
)^ |
|
|
0.06 |
|
Net
realized and unrealized gain (loss) on investments |
|
|
0.42 |
|
|
|
(2.99 |
) |
|
|
(0.98 |
) |
|
|
2.89 |
|
|
|
2.29 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
0.51 |
|
|
|
(2.93 |
) |
|
|
(1.02 |
) |
|
|
2.89 |
|
|
|
2.35 |
|
Less
distributions from: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
0.07 |
|
|
|
— |
|
|
|
0.05 |
|
|
|
0.02 |
|
|
|
0.08 |
|
Net
realized gain |
|
|
— |
|
|
|
0.08 |
|
|
|
0.88 |
|
|
|
0.11 |
|
|
|
0.02 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
0.07 |
|
|
|
0.08 |
|
|
|
0.93 |
|
|
|
0.13 |
|
|
|
0.10 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
8.76 |
|
|
$ |
8.32 |
|
|
$ |
11.33 |
|
|
$ |
13.28 |
|
|
$ |
10.52 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%) |
|
|
6.13 |
|
|
|
(25.84 |
) |
|
|
(7.48 |
) |
|
|
27.52 |
|
|
|
28.36 |
|
Ratios
to average daily net assets (%): |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
1.18 |
|
|
|
1.19 |
|
|
|
1.28 |
|
|
|
1.33 |
|
|
|
1.29 |
|
Expenses,
net of waivers and reimbursements |
|
|
0.99 |
|
|
|
1.05 |
|
|
|
1.15 |
|
|
|
1.15 |
|
|
|
1.20 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
0.82 |
|
|
|
0.46 |
|
|
|
(0.40 |
) |
|
|
(0.21 |
) |
|
|
0.53 |
|
Net
investment income (loss), net of waivers and reimbursements |
|
|
1.01 |
|
|
|
0.60 |
|
|
|
(0.27 |
) |
|
|
(0.03 |
) |
|
|
0.62 |
|
Class
I net assets at the end of the year (in thousands) |
|
$ |
13,772 |
|
|
$ |
29,682 |
|
|
$ |
42,750 |
|
|
$ |
62,319 |
|
|
$ |
45,090 |
|
Portfolio
turnover rate (%) |
|
|
44 |
|
|
|
42 |
|
|
|
40 |
|
|
|
47 |
|
|
|
33 |
|
^ |
Amount
is less than $0.005 per share. |
178
Emerging
Markets Leaders Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class R6 |
|
|
|
Years Ended December
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
8.31 |
|
|
$ |
11.32 |
|
|
$ |
13.26 |
|
|
$ |
10.51 |
|
|
$ |
8.26 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
0.09 |
|
|
|
0.06 |
|
|
|
(0.02 |
) |
|
|
0.00 |
^ |
|
|
0.06 |
|
Net
realized and unrealized gain (loss) on investments |
|
|
0.42 |
|
|
|
(2.99 |
) |
|
|
(0.98 |
) |
|
|
2.89 |
|
|
|
2.29 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
0.51 |
|
|
|
(2.93 |
) |
|
|
(1.00 |
) |
|
|
2.89 |
|
|
|
2.35 |
|
Less
distributions from: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
0.07 |
|
|
|
— |
|
|
|
0.06 |
|
|
|
0.03 |
|
|
|
0.08 |
|
Net
realized gain |
|
|
— |
|
|
|
0.08 |
|
|
|
0.88 |
|
|
|
0.11 |
|
|
|
0.02 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
0.07 |
|
|
|
0.08 |
|
|
|
0.94 |
|
|
|
0.14 |
|
|
|
0.10 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
8.75 |
|
|
$ |
8.31 |
|
|
$ |
11.32 |
|
|
$ |
13.26 |
|
|
$ |
10.51 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%) |
|
|
6.22 |
|
|
|
(25.86 |
) |
|
|
(7.35 |
) |
|
|
27.50 |
|
|
|
28.45 |
|
Ratios
to average daily net assets (%): |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
1.08 |
|
|
|
1.11 |
|
|
|
1.20 |
|
|
|
1.26 |
|
|
|
1.23 |
|
Expenses,
net of waivers and reimbursements |
|
|
0.94 |
|
|
|
1.00 |
|
|
|
1.10 |
|
|
|
1.10 |
|
|
|
1.15 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
0.90 |
|
|
|
0.50 |
|
|
|
(0.26 |
) |
|
|
(0.11 |
) |
|
|
0.57 |
|
Net
investment income (loss), net of waivers and reimbursements |
|
|
1.04 |
|
|
|
0.61 |
|
|
|
(0.16 |
) |
|
|
0.05 |
|
|
|
0.65 |
|
Class
R6 net assets at the end of the year (in thousands) |
|
$ |
238,806 |
|
|
$ |
321,319 |
|
|
$ |
428,839 |
|
|
$ |
198,015 |
|
|
$ |
191,337 |
|
Portfolio
turnover rate (%) |
|
|
44 |
|
|
|
42 |
|
|
|
40 |
|
|
|
47 |
|
|
|
33 |
|
^ |
Amount
is less than $0.005 per share. |
179
Emerging
Markets Growth Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
|
Years Ended December
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
10.35 |
|
|
$ |
15.55 |
|
|
$ |
18.42 |
|
|
$ |
13.67 |
|
|
$ |
11.14 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
0.06 |
|
|
|
0.02 |
|
|
|
(0.13 |
) |
|
|
(0.09 |
) |
|
|
0.11 |
|
Net
realized and unrealized gain (loss) on investments |
|
|
0.97 |
|
|
|
(5.20 |
) |
|
|
0.62 |
|
|
|
5.60 |
|
|
|
2.98 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
1.03 |
|
|
|
(5.18 |
) |
|
|
0.49 |
|
|
|
5.51 |
|
|
|
3.09 |
|
Less
distributions from: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
0.03 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.16 |
|
Net
realized gain |
|
|
— |
|
|
|
0.02 |
|
|
|
3.36 |
|
|
|
0.76 |
|
|
|
0.40 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
0.03 |
|
|
|
0.02 |
|
|
|
3.36 |
|
|
|
0.76 |
|
|
|
0.56 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
11.35 |
|
|
$ |
10.35 |
|
|
$ |
15.55 |
|
|
$ |
18.42 |
|
|
$ |
13.67 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%) |
|
|
9.99 |
|
|
|
(33.33 |
) |
|
|
2.97 |
|
|
|
40.43 |
|
|
|
27.89 |
|
Ratios
to average daily net assets (%): |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
1.46 |
|
|
|
1.50 |
|
|
|
1.55 |
|
|
|
1.55 |
|
|
|
1.51 |
|
Expenses,
net of waivers and reimbursements |
|
|
1.24 |
|
|
|
1.36 |
|
|
|
1.55 |
|
|
|
1.55 |
|
|
|
1.51 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
0.38 |
|
|
|
0.07 |
|
|
|
(0.65 |
) |
|
|
(0.60 |
) |
|
|
0.84 |
|
Net
investment income (loss), net of waivers and reimbursements |
|
|
0.60 |
|
|
|
0.21 |
|
|
|
(0.65 |
) |
|
|
(0.60 |
) |
|
|
0.84 |
|
Class
N net assets at the end of the year (in thousands) |
|
$ |
13,748 |
|
|
$ |
14,664 |
|
|
$ |
28,565 |
|
|
$ |
18,606 |
|
|
$ |
7,804 |
|
Portfolio
turnover rate (%) |
|
|
58 |
|
|
|
92 |
|
|
|
52 |
|
|
|
77 |
|
|
|
79 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class I |
|
|
|
Years Ended December
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
10.58 |
|
|
$ |
15.85 |
|
|
$ |
18.66 |
|
|
$ |
13.82 |
|
|
$ |
11.25 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
0.09 |
|
|
|
0.05 |
|
|
|
(0.07 |
) |
|
|
(0.05 |
) |
|
|
0.14 |
|
Net
realized and unrealized gain (loss) on investments |
|
|
0.99 |
|
|
|
(5.30 |
) |
|
|
0.62 |
|
|
|
5.66 |
|
|
|
3.02 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
1.08 |
|
|
|
(5.25 |
) |
|
|
0.55 |
|
|
|
5.61 |
|
|
|
3.16 |
|
Less
distributions from: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
0.06 |
|
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
0.19 |
|
Net
realized gain |
|
|
— |
|
|
|
0.02 |
|
|
|
3.36 |
|
|
|
0.76 |
|
|
|
0.40 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
0.06 |
|
|
|
0.02 |
|
|
|
3.36 |
|
|
|
0.77 |
|
|
|
0.59 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
11.60 |
|
|
$ |
10.58 |
|
|
$ |
15.85 |
|
|
$ |
18.66 |
|
|
$ |
13.82 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%) |
|
|
10.23 |
|
|
|
(33.14 |
) |
|
|
3.25 |
|
|
|
40.72 |
|
|
|
28.29 |
|
Ratios
to average daily net assets (%): |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
1.20 |
|
|
|
1.24 |
|
|
|
1.27 |
|
|
|
1.30 |
|
|
|
1.26 |
|
Expenses,
net of waivers and reimbursements |
|
|
0.99 |
|
|
|
1.11 |
|
|
|
1.27 |
|
|
|
1.30 |
|
|
|
1.26 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
0.61 |
|
|
|
0.32 |
|
|
|
(0.37 |
) |
|
|
(0.33 |
) |
|
|
1.06 |
|
Net
investment income (loss), net of waivers and reimbursements |
|
|
0.82 |
|
|
|
0.45 |
|
|
|
(0.37 |
) |
|
|
(0.33 |
) |
|
|
1.06 |
|
Class
I net assets at the end of the year (in thousands) |
|
$ |
173,377 |
|
|
$ |
174,884 |
|
|
$ |
190,985 |
|
|
$ |
113,697 |
|
|
$ |
73,496 |
|
Portfolio
turnover rate (%) |
|
|
58 |
|
|
|
92 |
|
|
|
52 |
|
|
|
77 |
|
|
|
79 |
|
180
Emerging
Markets Growth Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class R6 |
|
|
|
Years Ended December
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
10.71 |
|
|
$ |
16.04 |
|
|
$ |
18.84 |
|
|
$ |
13.94 |
|
|
$ |
11.35 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
0.09 |
|
|
|
0.06 |
|
|
|
(0.05 |
) |
|
|
(0.03 |
) |
|
|
0.15 |
|
Net
realized and unrealized gain (loss) on investments |
|
|
1.01 |
|
|
|
(5.37 |
) |
|
|
0.63 |
|
|
|
5.71 |
|
|
|
3.04 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
1.10 |
|
|
|
(5.31 |
) |
|
|
0.58 |
|
|
|
5.68 |
|
|
|
3.19 |
|
Less
distributions from: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
0.07 |
|
|
|
— |
|
|
|
0.02 |
|
|
|
0.02 |
|
|
|
0.20 |
|
Net
realized gain |
|
|
— |
|
|
|
0.02 |
|
|
|
3.36 |
|
|
|
0.76 |
|
|
|
0.40 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
0.07 |
|
|
|
0.02 |
|
|
|
3.38 |
|
|
|
0.78 |
|
|
|
0.60 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
11.74 |
|
|
$ |
10.71 |
|
|
$ |
16.04 |
|
|
$ |
18.84 |
|
|
$ |
13.94 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%) |
|
|
10.26 |
|
|
|
(33.13 |
) |
|
|
3.37 |
|
|
|
40.90 |
|
|
|
28.28 |
|
Ratios
to average daily net assets (%): |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
1.08 |
|
|
|
1.14 |
|
|
|
1.17 |
|
|
|
1.20 |
|
|
|
1.19 |
|
Expenses,
net of waivers and reimbursements |
|
|
0.94 |
|
|
|
1.06 |
|
|
|
1.17 |
|
|
|
1.20 |
|
|
|
1.19 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
0.68 |
|
|
|
0.41 |
|
|
|
(0.27 |
) |
|
|
(0.22 |
) |
|
|
1.17 |
|
Net
investment income (loss), net of waivers and reimbursements |
|
|
0.82 |
|
|
|
0.49 |
|
|
|
(0.27 |
) |
|
|
(0.22 |
) |
|
|
1.17 |
|
Class
R6 net assets at the end of the year (in thousands) |
|
$ |
635,716 |
|
|
$ |
480,586 |
|
|
$ |
822,288 |
|
|
$ |
1,063,433 |
|
|
$ |
708,892 |
|
Portfolio
turnover rate (%) |
|
|
58 |
|
|
|
92 |
|
|
|
52 |
|
|
|
77 |
|
|
|
79 |
|
181
Emerging
Markets ex China Growth Fund
|
|
|
|
|
|
|
| |
|
|
Class I |
|
|
|
Years Ended December 31, |
|
|
|
2023 |
|
|
2022(a) |
|
Net
asset value, beginning of year |
|
$ |
9.41 |
|
|
$ |
10.00 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
| |
Net
investment income (loss) |
|
|
0.08 |
|
|
|
0.02 |
|
Net
realized and unrealized gain (loss) on investments |
|
|
2.25 |
|
|
|
(0.61 |
) |
| |
|
|
|
|
|
|
|
Total
from investment operations |
|
|
2.33 |
|
|
|
(0.59 |
) |
Less
distributions from: |
|
|
|
| |
|
| |
Net
investment income |
|
|
0.10 |
|
|
|
— |
|
Net
realized gain |
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
Total
distributions |
|
|
0.10 |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
11.64 |
|
|
$ |
9.41 |
|
| |
|
|
|
|
|
|
|
Total
return (%)* |
|
|
24.75 |
|
|
|
(5.90 |
) |
Ratios
to average daily net assets (%)**: |
|
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
2.35 |
|
|
|
2.77 |
|
Expenses,
net of waivers and reimbursements |
|
|
0.99 |
|
|
|
0.99 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
(0.58 |
) |
|
|
(1.40 |
) |
Net
investment income (loss), net of waivers and reimbursements |
|
|
0.78 |
|
|
|
0.38 |
|
Class
I net assets at the end of the year (in thousands) |
|
$ |
2,841 |
|
|
$ |
9 |
|
Portfolio
turnover rate (%)* |
|
|
55 |
|
|
|
64 |
|
|
|
|
|
|
|
|
| |
|
|
Class R6 |
|
|
|
Years Ended December 31, |
|
|
|
2023 |
|
|
2022(a) |
|
Net
asset value, beginning of year |
|
$ |
9.42 |
|
|
$ |
10.00 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
| |
Net
investment income (loss) |
|
|
0.08 |
|
|
|
0.02 |
|
Net
realized and unrealized gain (loss) on investments |
|
|
2.25 |
|
|
|
(0.60 |
) |
| |
|
|
|
|
|
|
|
Total
from investment operations |
|
|
2.33 |
|
|
|
(0.58 |
) |
Less
distributions from: |
|
|
|
| |
|
| |
Net
investment income |
|
|
0.10 |
|
|
|
— |
|
Net
realized gain |
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
Total
distributions |
|
|
0.10 |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
11.65 |
|
|
$ |
9.42 |
|
| |
|
|
|
|
|
|
|
Total
return (%)* |
|
|
24.75 |
|
|
|
(5.80 |
) |
Ratios
to average daily net assets (%)**: |
|
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
2.26 |
|
|
|
2.78 |
|
Expenses,
net of waivers and reimbursements |
|
|
0.94 |
|
|
|
0.94 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
(0.53 |
) |
|
|
(1.42 |
) |
Net
investment income (loss), net of waivers and reimbursements |
|
|
0.79 |
|
|
|
0.42 |
|
Class
R6 net assets at the end of the year (in thousands) |
|
$ |
19,169 |
|
|
$ |
13,024 |
|
Portfolio
turnover rate (%)* |
|
|
55 |
|
|
|
64 |
|
(a) |
For
the period from July 29, 2022 (Commencement of Operations) to
December 31, 2022. |
* |
Rates
are not annualized for periods less than a year.
|
** |
Rates
are annualized for periods less than a year. |
182
Emerging
Markets Small Cap Growth Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class N |
|
|
|
Years Ended December
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
16.13 |
|
|
$ |
23.52 |
|
|
$ |
22.22 |
|
|
$ |
16.80 |
|
|
$ |
13.96 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
0.03 |
|
|
|
(0.01 |
) |
|
|
(0.20 |
) |
|
|
(0.06 |
) |
|
|
0.00 |
^ |
Net
realized and unrealized gain (loss) on investments |
|
|
3.51 |
|
|
|
(6.59 |
) |
|
|
3.53 |
|
|
|
5.48 |
|
|
|
2.84 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
3.54 |
|
|
|
(6.60 |
) |
|
|
3.33 |
|
|
|
5.42 |
|
|
|
2.84 |
|
Less
distributions from: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
0.01 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net
realized gain |
|
|
— |
|
|
|
0.79 |
|
|
|
2.03 |
|
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
0.01 |
|
|
|
0.79 |
|
|
|
2.03 |
|
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
19.66 |
|
|
$ |
16.13 |
|
|
$ |
23.52 |
|
|
$ |
22.22 |
|
|
$ |
16.80 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%) |
|
|
21.93 |
|
|
|
(28.12 |
) |
|
|
15.23 |
|
|
|
32.26 |
|
|
|
20.34 |
|
Ratios
to average daily net assets (%): |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
1.70 |
|
|
|
1.69 |
|
|
|
1.60 |
|
|
|
1.77 |
|
|
|
1.71 |
|
Expenses,
net of waivers and reimbursements |
|
|
1.45 |
|
|
|
1.55 |
|
|
|
1.55 |
|
|
|
1.55 |
|
|
|
1.55 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
(0.07 |
) |
|
|
(0.18 |
) |
|
|
(0.88 |
) |
|
|
(0.58 |
) |
|
|
(0.14 |
) |
Net
investment income (loss), net of waivers and reimbursements |
|
|
0.18 |
|
|
|
(0.04 |
) |
|
|
(0.83 |
) |
|
|
(0.36 |
) |
|
|
0.02 |
|
Class
N net assets at the end of the year (in thousands) |
|
$ |
3,857 |
|
|
$ |
3,069 |
|
|
$ |
4,262 |
|
|
$ |
3,947 |
|
|
$ |
4,025 |
|
Portfolio
turnover rate (%) |
|
|
117 |
|
|
|
101 |
|
|
|
76 |
|
|
|
119 |
|
|
|
142 |
|
| |
|
|
Class I |
|
|
|
Years Ended December
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
16.37 |
|
|
$ |
23.79 |
|
|
$ |
22.40 |
|
|
$ |
16.90 |
|
|
$ |
14.03 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
0.07 |
|
|
|
0.04 |
|
|
|
(0.14 |
) |
|
|
(0.02 |
) |
|
|
0.04 |
|
Net
realized and unrealized gain (loss) on investments |
|
|
3.57 |
|
|
|
(6.67 |
) |
|
|
3.56 |
|
|
|
5.53 |
|
|
|
2.86 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
3.64 |
|
|
|
(6.63 |
) |
|
|
3.42 |
|
|
|
5.51 |
|
|
|
2.90 |
|
Less
distributions from: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
0.05 |
|
|
|
— |
|
|
|
— |
|
|
|
0.01 |
|
|
|
0.03 |
|
Net
realized gain |
|
|
— |
|
|
|
0.79 |
|
|
|
2.03 |
|
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
0.05 |
|
|
|
0.79 |
|
|
|
2.03 |
|
|
|
0.01 |
|
|
|
0.03 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
19.96 |
|
|
$ |
16.37 |
|
|
$ |
23.79 |
|
|
$ |
22.40 |
|
|
$ |
16.90 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%) |
|
|
22.25 |
|
|
|
(27.93 |
) |
|
|
15.51 |
|
|
|
32.60 |
|
|
|
20.58 |
|
Ratios
to average daily net assets (%): |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
1.43 |
|
|
|
1.40 |
|
|
|
1.31 |
|
|
|
1.45 |
|
|
|
1.40 |
|
Expenses,
net of waivers and reimbursements |
|
|
1.20 |
|
|
|
1.30 |
|
|
|
1.30 |
|
|
|
1.30 |
|
|
|
1.30 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
0.18 |
|
|
|
0.11 |
|
|
|
(0.59 |
) |
|
|
(0.25 |
) |
|
|
0.18 |
|
Net
investment income (loss), net of waivers and reimbursements |
|
|
0.41 |
|
|
|
0.21 |
|
|
|
(0.58 |
) |
|
|
(0.10 |
) |
|
|
0.28 |
|
Class
I net assets at the end of the year (in thousands) |
|
$ |
134,297 |
|
|
$ |
108,401 |
|
|
$ |
171,994 |
|
|
$ |
151,302 |
|
|
$ |
142,885 |
|
Portfolio
turnover rate (%) |
|
|
117 |
|
|
|
101 |
|
|
|
76 |
|
|
|
119 |
|
|
|
142 |
|
^ |
Amount
is less than $0.005 per share. |
183
Emerging
Markets Small Cap Growth Fund
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class R6 |
|
|
|
Years Ended December
31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021 |
|
|
2020 |
|
|
2019 |
|
Net
asset value, beginning of year |
|
$ |
16.41 |
|
|
$ |
23.84 |
|
|
$ |
22.44 |
|
|
$ |
16.93 |
|
|
$ |
14.06 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
0.08 |
|
|
|
0.05 |
|
|
|
(0.12 |
) |
|
|
(0.00 |
)^ |
|
|
0.05 |
|
Net
realized and unrealized gain (loss) on investments |
|
|
3.59 |
|
|
|
(6.69 |
) |
|
|
3.56 |
|
|
|
5.53 |
|
|
|
2.86 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
3.67 |
|
|
|
(6.64 |
) |
|
|
3.44 |
|
|
|
5.53 |
|
|
|
2.91 |
|
Less
distributions from: |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
0.06 |
|
|
|
— |
|
|
|
0.01 |
|
|
|
0.02 |
|
|
|
0.04 |
|
Net
realized gain |
|
|
— |
|
|
|
0.79 |
|
|
|
2.03 |
|
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
0.06 |
|
|
|
0.79 |
|
|
|
2.04 |
|
|
|
0.02 |
|
|
|
0.04 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
20.02 |
|
|
$ |
16.41 |
|
|
$ |
23.84 |
|
|
$ |
22.44 |
|
|
$ |
16.93 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
return (%) |
|
|
22.37 |
|
|
|
(27.91 |
) |
|
|
15.58 |
|
|
|
32.66 |
|
|
|
20.69 |
|
Ratios
to average daily net assets (%): |
|
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
1.32 |
|
|
|
1.31 |
|
|
|
1.23 |
|
|
|
1.36 |
|
|
|
1.33 |
|
Expenses,
net of waivers and reimbursements |
|
|
1.15 |
|
|
|
1.25 |
|
|
|
1.23 |
|
|
|
1.25 |
|
|
|
1.25 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
0.29 |
|
|
|
0.18 |
|
|
|
(0.49 |
) |
|
|
(0.14 |
) |
|
|
0.27 |
|
Net
investment income (loss), net of waivers and reimbursements |
|
|
0.46 |
|
|
|
0.24 |
|
|
|
(0.49 |
) |
|
|
(0.03 |
) |
|
|
0.35 |
|
Class
R6 net assets at the end of the year (in thousands) |
|
$ |
251,558 |
|
|
$ |
211,203 |
|
|
$ |
324,152 |
|
|
$ |
152,160 |
|
|
$ |
130,711 |
|
Portfolio
turnover rate (%) |
|
|
117 |
|
|
|
101 |
|
|
|
76 |
|
|
|
119 |
|
|
|
142 |
|
^ |
Amount
is less than $0.005 per share. |
184
China
Growth Fund
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class I |
|
|
|
Years Ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021(a) |
|
Net
asset value, beginning of year |
|
$ |
6.46 |
|
|
$ |
9.54 |
|
|
$ |
10.00 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
0.05 |
|
|
|
0.03 |
|
|
|
(0.04 |
) |
Net
realized and unrealized gain (loss) on investments |
|
|
(1.62 |
) |
|
|
(3.11 |
) |
|
|
(0.42 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
(1.57 |
) |
|
|
(3.08 |
) |
|
|
(0.46 |
) |
Less
distributions from: |
|
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
0.02 |
|
|
|
— |
|
|
|
— |
|
Net
realized gain |
|
|
— |
|
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
0.02 |
|
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
4.87 |
|
|
$ |
6.46 |
|
|
$ |
9.54 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Total
return (%)* |
|
|
(24.28 |
) |
|
|
(32.43 |
) |
|
|
(4.40 |
) |
Ratios
to average daily net assets (%)**: |
|
|
|
| |
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
9.78 |
|
|
|
5.31 |
|
|
|
4.74 |
|
Expenses,
net of waivers and reimbursements |
|
|
0.99 |
|
|
|
1.01 |
|
|
|
1.05 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
(7.93 |
) |
|
|
(3.90 |
) |
|
|
(4.69 |
) |
Net
investment income (loss), net of waivers and reimbursements |
|
|
0.86 |
|
|
|
0.40 |
|
|
|
(1.00 |
) |
Class
I net assets at the end of the year (in thousands) |
|
$ |
160 |
|
|
$ |
509 |
|
|
$ |
5,538 |
|
Portfolio
turnover rate (%)* |
|
|
97 |
|
|
|
36 |
|
|
|
4 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class R6 |
|
|
|
Years Ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021(a) |
|
Net
asset value, beginning of year |
|
$ |
6.45 |
|
|
$ |
9.54 |
|
|
$ |
10.00 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
0.04 |
|
|
|
0.02 |
|
|
|
(0.03 |
) |
Net
realized and unrealized gain (loss) on investments |
|
|
(1.61 |
) |
|
|
(3.11 |
) |
|
|
(0.43 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
(1.57 |
) |
|
|
(3.09 |
) |
|
|
(0.46 |
) |
Less
distributions from: |
|
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
0.03 |
|
|
|
0.00 |
^ |
|
|
— |
|
Net
realized gain |
|
|
— |
|
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
0.03 |
|
|
|
0.00 |
^ |
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
4.85 |
|
|
$ |
6.45 |
|
|
$ |
9.54 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Total
return (%)* |
|
|
(24.38 |
) |
|
|
(32.49 |
) |
|
|
(4.40 |
) |
Ratios
to average daily net assets (%)**: |
|
|
|
| |
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
9.75 |
|
|
|
5.27 |
|
|
|
4.72 |
|
Expenses,
net of waivers and reimbursements |
|
|
0.94 |
|
|
|
0.96 |
|
|
|
1.00 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
(8.08 |
) |
|
|
(4.01 |
) |
|
|
(4.61 |
) |
Net
investment income (loss), net of waivers and reimbursements |
|
|
0.73 |
|
|
|
0.30 |
|
|
|
(0.89 |
) |
Class
R6 net assets at the end of the year (in thousands) |
|
$ |
1,687 |
|
|
$ |
1,438 |
|
|
$ |
1,687 |
|
Portfolio
turnover rate (%)* |
|
|
97 |
|
|
|
36 |
|
|
|
4 |
|
(a) |
For
the period from August 27, 2021 (Commencement of Operations) to
December 31, 2021. |
* |
Rates
are not annualized for periods less than a year.
|
** |
Rates
are annualized for periods less than a year. |
^ |
Amount
is less than $0.005 per share. |
185
Emerging
Markets Debt Fund
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class I |
|
|
|
Years Ended December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021(a) |
|
Net
asset value, beginning of year |
|
$ |
7.44 |
|
|
$ |
9.59 |
|
|
$ |
10.00 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
0.52 |
|
|
|
0.48 |
|
|
|
0.27 |
|
Net
realized and unrealized gain (loss) on investments |
|
|
0.44 |
|
|
|
(2.10 |
) |
|
|
(0.40 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
0.96 |
|
|
|
(1.62 |
) |
|
|
(0.13 |
) |
Less
distributions from: |
|
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
0.48 |
|
|
|
0.51 |
|
|
|
0.28 |
|
Net
realized gain |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Return
of capital |
|
|
0.03 |
|
|
|
0.02 |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
0.51 |
|
|
|
0.53 |
|
|
|
0.28 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
7.89 |
|
|
$ |
7.44 |
|
|
$ |
9.59 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Total
return (%)* |
|
|
13.41 |
|
|
|
(16.93 |
) |
|
|
(1.39 |
) |
Ratios
to average daily net assets (%)**: |
|
|
|
| |
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
1.26 |
|
|
|
1.28 |
|
|
|
1.24 |
|
Expenses,
net of waivers and reimbursements |
|
|
0.70 |
|
|
|
0.70 |
|
|
|
0.70 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
6.42 |
|
|
|
5.39 |
|
|
|
4.02 |
|
Net
investment income (loss), net of waivers and reimbursements |
|
|
6.98 |
|
|
|
5.97 |
|
|
|
4.56 |
|
Class
I net assets at the end of the year (in thousands) |
|
$ |
3,205 |
|
|
$ |
923 |
|
|
$ |
1,484 |
|
Portfolio
turnover rate (%)* |
|
|
106 |
|
|
|
118 |
|
|
|
72 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
Class R6 |
|
|
|
Years Ended
December 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2021(a) |
|
Net
asset value, beginning of year |
|
$ |
7.44 |
|
|
$ |
9.59 |
|
|
$ |
10.00 |
|
Income
(loss) from investment operations: |
|
|
|
| |
|
|
| |
|
| |
Net
investment income (loss) |
|
|
0.53 |
|
|
|
0.48 |
|
|
|
0.28 |
|
Net
realized and unrealized gain (loss) on investments |
|
|
0.42 |
|
|
|
(2.09 |
) |
|
|
(0.41 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
Total
from investment operations |
|
|
0.95 |
|
|
|
(1.61 |
) |
|
|
(0.13 |
) |
Less
distributions from: |
|
|
|
| |
|
|
| |
|
| |
Net
investment income |
|
|
0.48 |
|
|
|
0.52 |
|
|
|
0.28 |
|
Net
realized gain |
|
|
— |
|
|
|
— |
|
|
|
— |
|
Return
of capital |
|
|
0.03 |
|
|
|
0.02 |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Total
distributions |
|
|
0.51 |
|
|
|
0.54 |
|
|
|
0.28 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Net
asset value, end of year |
|
$ |
7.88 |
|
|
$ |
7.44 |
|
|
$ |
9.59 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
Total
return (%)* |
|
|
13.48 |
|
|
|
(16.95 |
) |
|
|
(1.32 |
) |
Ratios
to average daily net assets (%)**: |
|
|
|
| |
|
|
| |
|
| |
Expenses,
before waivers and reimbursements |
|
|
1.17 |
|
|
|
1.20 |
|
|
|
1.17 |
|
Expenses,
net of waivers and reimbursements |
|
|
0.65 |
|
|
|
0.65 |
|
|
|
0.65 |
|
Net
investment income (loss), before waivers and reimbursements |
|
|
6.52 |
|
|
|
5.50 |
|
|
|
4.10 |
|
Net
investment income (loss), net of waivers and reimbursements |
|
|
7.04 |
|
|
|
6.05 |
|
|
|
4.62 |
|
Class
R6 net assets at the end of the year (in thousands) |
|
$ |
50,231 |
|
|
$ |
44,903 |
|
|
$ |
50,010 |
|
Portfolio
turnover rate (%)* |
|
|
106 |
|
|
|
118 |
|
|
|
72 |
|
(a) |
For
the period from May 25, 2021 (Commencement of Operations) to
December 31, 2021. |
* |
Rates
are not annualized for periods less than a year.
|
** |
Rates
are annualized for periods less than a year. |
186
FOR
MORE INFORMATION
More
information about the Funds is available without charge, upon request, including
the following:
Semi-Annual/Annual
Reports
The
Semi-Annual and audited Annual Reports to shareholders include financial
statements, detailed performance information, portfolio holdings and statements
from the Fund managers. In the Annual Report, you will find a discussion of the
market conditions and investment strategies that the Adviser believes
significantly affected each Fund’s performance in its last fiscal year.
Statement
of Additional Information (SAI)
The
SAI contains more detailed information about the Funds. The current SAI has been
filed with the SEC and is incorporated by reference into this Prospectus, which
means that it is part of this Prospectus for legal purposes.
To
obtain information:
By
telephone
Call:
1-800-635-2886
(In
Massachusetts 1-800-635-2840)
By
mail
Write
to:
William
Blair Funds
150
North Riverside Plaza
Chicago,
Illinois 60606
or
SS&C
Global Investor and Distribution Solutions, Inc.
(the
Funds’ Transfer Agent)
P.O.
Box 219137
Kansas
City, Missouri 64121-9137
On
the Internet
Text-only
versions of Fund documents can be viewed online or downloaded from the EDGAR
Database on the SEC’s Internet site at www.sec.gov.
Reports
and other information about the Funds are available on the EDGAR database of the
SEC’s internet site at http://www.sec.gov. You may obtain copies of these
reports and other information, after paying a duplicating fee, by sending an
e-mail request to:
[email protected].
Reports
and other information about the Funds are also available on the William Blair
Funds website at:
https://www.williamblairfunds.com/investor_services/prospectus_reports_forms.fs.
No
person has been authorized to give any information or to make any
representations not contained in this Prospectus and, if given or made, such
information or representations must not be relied upon as having been authorized
by the Trust or the Distributor. The Prospectus does not constitute an offering
by the Trust or the Distributor in any jurisdiction in which such offering may
not lawfully be made.
The
Trust’s information, including but not limited to the Prospectus, SAI,
Semi-Annual and Annual Reports and account application, can be viewed online at
www.williamblairfunds.com.
William
Blair Funds |
May 1,
2024 |
Investment
Company Act File No.: 811-5344
187
William
Blair Funds
Prospectus
|
| |
U.S. EQUITY |
|
GLOBAL/INTERNATIONAL EQUITY |
Growth
Fund |
|
Global
Leaders Fund |
Large Cap
Growth Fund |
|
International
Leaders Fund |
Mid Cap Value
Fund |
|
International
Growth Fund |
Small-Mid Cap
Core Fund |
|
Institutional
International Growth Fund |
Small-Mid Cap
Growth Fund |
|
International
Small Cap Growth Fund |
Small-Mid Cap
Value Fund |
|
Emerging
Markets Leaders Fund |
Small Cap
Growth Fund |
|
Emerging
Markets Growth Fund |
Small Cap
Value Fund |
|
Emerging
Markets ex China Growth Fund |
| |
Emerging
Markets Small Cap Growth Fund |
| |
China Growth
Fund |
EMERGING
MARKETS DEBT |
|
|
Emerging
Markets Debt Fund |
|
|
|
|
|
| |
| |
| |
©William Blair &
Company, L.L.C., Distributor |
|
|
+1 800 742 7272
williamblairfunds.com |
|
150
North Riverside Plaza
Chicago,
Illinois 60606 |