William Blair SICAV - Emerging Markets Leaders Fund Class D (USD)
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William Blair SICAV – Emerging Markets Leaders Fund
Class D (USD)
Portfolio Review
June 2021
Todd M. McClone, CFA, Partner
Jack Murphy, CFA, Partner
ISIN: LU0612817204 Portfolio Managers
FOR PROFESSIONAL INVESTORS ONLYSummary & Outlook June 2021
and business activity. Economic data was also supportive,
specifically the Eurozone manufacturing purchasing
Market Review
manager’s index (PMI) which rose to a record high level
Global equities continued to advance in the second quarter (63.4) in June.
(the MSCI ACWI IMI gained +7.18% in the second quarter
Strength within Latin America (+15.56% for the quarter
and 12.68% year-to-date in USD terms) amid further
and +9.64% year-to-date) was primarily driven by Brazil
success of vaccination rollouts and a healthy rebound in
(+23.60% for the quarter and +11.89% year-to-date)
economic activity, especially in developed markets. The
bolstered by stronger commodity prices and currency
sharp style rotation in the first quarter which favored value
tailwinds. China underperformed on a relative basis
areas subsided in the second quarter with growth stocks
(+2.35% for the quarter and +2.36% year-to-date) amid
outperforming. From a global sector perspective,
concerns over tightening liquidity and increased regulatory
Information Technology outperformed (+10.22% for the
oversight on large cap technology companies.
quarter and +12.39% year-to-date) while Utilities
significantly underperformed (-0.09% for the quarter and Performance
+0.86% year-to-date). Energy also continued to rally
(+10.08% for the quarter and +30.51% year-to-date) as Second quarter underperformance versus the MSCI
rising demand drove stronger crude oil prices. Emerging Markets (net) was primarily driven by negative
stock selection within the Financials and Consumer
US equities advanced (+8.36% for the quarter and +15.05% Discretionary sectors. Within the Financial sector,
year-to-date) as investors welcomed news of additional performance was dragged down by Ping An Insurance
federal spending to revive the economy. In addition to the Group and Credicorp. Tal Education Group hampered
$1.9 trillion Covid relief plan and $2.3 trillion infrastructure Consumer Discretionary sector results.
plan introduced in the first quarter, the Biden
administration also announced a $1.8 trillion American Ping An’s share price weakened on slow business activity
Families Plan emphasizing strong support for national due to the challenging economic backdrop for insurance
and the company’s ongoing reform of its distribution and
childcare to ensure an equitable recovery from the
product offering. In addition, the write-down of property
pandemic, especially for female workers and mothers.
investments and its participation in the Peking University
Significant federal spending drove concerns over rising Founder Group restructuring transaction also weighed on
inflation. In May, headline inflation rose to 5.0% year on the stock price. Despite recent headwinds, Ping An
year, above expectations. generated a strong ROE and we believe the current
European equities kept pace with the benchmark (+7.26% valuation underestimates the company’s growth potential.
Credicorp stands out as a leading banking franchise in Peru
for the quarter and +11.81% year-to-date) as several
with solid management, brand, scale and a strong
European countries gradually relaxed restrictions on travel normalized ROE. It has leading market share in Peru andSummary & Outlook June 2021
has gained share in nearly all aspects of the business during While the company remains a leading car manufacturer in
a very challenging year. Credicorp’s stock performance was India, we sold the position amid a weaker growth outlook
hampered by uncertainty surrounding the Presidential in a mature, capital intensive and highly competitive
election and heightened economic, political and regulatory industry. Within Health Care, we sold Jiangsu Hengrui, the
risks as a result of the election outcome. Tal Education is a leading pharmaceutical company in China, due to concerns
leading tutoring services provider in China with a strong over regulatory headwinds as its generics business faces
brand and significant growth opportunities. The stock price pressure from centralized procurement. The overall
declined amid regulatory headwinds as the government sector weighting was boosted by the purchase of Aier Eye
seeks to enhance standards of after school education and Hospital Group Co, the leading ophthalmology specialty
tutoring and reduce the tutoring burden for children. hospital with a strong brand and scalable business model.
We believe the company can deliver substantial net profit
CAGR until 2030 driven by increased penetration, robust
Partially offsetting these effects was positive stock selection average sales price growth and scale.
within the Communication Services and Health Care
sectors. Within Communication Services, Kakao Corp and We also purchased eMemory within the Information
Sea Ltd bolstered relative results. Kakao’s share price Technology sector. The company is a Taiwanese
rallied in the first half of the year amid strong operating semiconductor company specializing in embedded non-
performance and a solid growth outlook for its core volatile memory (eNVM) IP which provides a unique
business and expanding opportunities. It was also boosted identifier preventing chips from being counterfeited and
by positive sentiment amid the upcoming IPO of its fintech protecting the data that is stored inside of the chips. We
businesses, Kakao Bank and Kakao Pay. Sea Ltd, the leading believe the company has a superior competitive advantage
digital platform in ASEAN, continued to outperform on the from its 'best of breed' IP and over 800 patents, and we
expect growth acceleration through new product launches,
back of strong momentum in its gaming business with Free
wider adoption of the company’s solutions and higher
Fire leading in Latin America, Southeast Asia and India and
average selling prices.
accelerating growth in its ecommerce business amid
increasing penetration and market share gains. Zhangzhou From a geographic perspective, notable adjustments were
Pientzehuang, a traditional Chinese medicine company, increases to Russia and South Korea, offset by a decrease to
bolstered results within the Health Care sector. The stock China.
outperformance was fueled by robust volume growth and
price hikes coupled with a supportive regulatory backdrop. Outlook
Positioning The market is experiencing a tug of war between the
impressive acceleration of economic growth due to global
During the period, Consumer Discretionary exposure was re-openings, and fears of a resurgence of COVID virus case
reduced through the liquidation of Maruti Suzuki India Ltd. counts. We believe economic growth will win out. WhileSummary & Outlook June 2021
concerning, the positive view is that the vaccines are another 3-6 months for the supply catch up to occur across
working, and the delta variant is proving not as harmful. most industries.
As for recent economic activity, it has been more of the The global market is up close to 40% over the last twelve
same, with both consumption and production activity months. While market valuations receive a lot of attention,
strong – in some cases above 2019 levels. While we expect perhaps unnoticed is that this market appreciation has
a sequential peak in GDP growth likely occurred in 2Q, the been driven entirely by earnings growth. The market has
remainder of the year should continue to be quite strong. actually de-rated a bit during this period.
We believe that corporate earnings growth, which has been
impressive thus far in 2021, remains underestimated. In More economically sensitive sectors of the market (e.g.,
fact, projected bottom-up corporate profit growth lags top- cyclicals and financials) have re-rated along with a
down GDP estimates by a wider margin than we saw resurgence of their growth. In contrast, companies with
coming out of the global financial crisis of 2008 (GFC). stronger structural long-term growth have lagged on a
Thus, we are confident profit growth will continue to relative basis, and in some cases have seen their stock
surprise to the upside. multiples compress. We view this is a classic period of
structural winners “growing into” their multiples.
As is the case in almost every economic expansion period,
earnings growth has been the key market driver. We are Consistent with our growth outlook we believe most of this
now clearly in expansion mode, with the corporate profit experience is likely behind us but may occur off and on
picture and market leadership following the script. during the balance of the year while the market digests the
economic and profit picture. Ultimately as economic
During the second quarter, we saw earnings revisions and growth reverts to the long-term mean and the market
momentum lead market performance, while valuation begins to discount peak cyclical earnings, the structural
flipped from dominating in 1Q (typical of recovery periods) growers will again have their day.
to not much of a factor. Quality and Growth re-asserted
themselves positively. All of these characteristics are very Corporate Capital Expenditures
typical of performance during an economic expansion and
we believe they are likely to continue. Corporate profit margins and cash flows have been
impressive, and we believe we are entering an era where
Inflation concerns have been a natural topic of debate all more of that cash flow is likely to be directed to capital
year. We continue to foresee reflation back to long-term, investment and research and development.
i.e., manageable, levels. In this unique cycle, we are
experiencing price increases driven by the re-opening of We see two reasons for rapidly ramping capital spending
supply not keeping up with demand fast enough. While in by corporates: 1) digitalization of businesses is now a
some cases we are already seeing a few industrial survival imperative; and 2) shortening supply chains has
commodity prices reverting, we expect that it will take become necessary to improve operational resilience.Summary & Outlook June 2021
preservation. Since the early 1980s everything from
We are witnessing it already: After the GFC, it took US taxation to antitrust to regulatory and labor policies was
private sector non-residential investment nearly four years geared to improving corporate profitability. Today, there is
to recover to pre-crisis levels. By contrast, capex spending growing recognition that these policies may have gone too
in Q1 2021 already surpassed the Q4 2019 peak. far. The operating environment is changing on the margin:
Intellectual property and software investment recovered pressure for stronger wage growth, especially at the
by Q4 2020, compared to six quarters post-GFC. bottom of the income distribution is rising.
The COVID pandemic has elevated operational efficiencies The G7 agreeing on a minimum corporate tax rate suggests
of digital business models into a survival imperative for that the race to the bottom is over. Antitrust authorities in
virtually all companies. Digital businesses were able to China, Europe and the US are openly exploring ways to
operate relatively unscathed during the pandemic bring competition standards to industries and businesses
lockdowns, while more traditional, high physical contact that have been able to behave as monopolies or quasi
businesses were forced to shut down. Within industries, monopolies. These changes incentivize corporate
those companies who had proactively employed more data investment, which in turn will likely expand supply and
and digitally- enabled business practices pressed their enable stronger economic growth without higher inflation.
competitive advantage. We are seeing companies of all We will have more to say on this topic in the coming
sizes accelerate their investment into cloud-based systems, months and quarters.
remote work, digitally driven customer service solutions,
and the requisite software applications required to make it Spotlight: Industrials
all work.
The confluence of the strong economic cycle and what we
Companies have spent decades rationalizing their supply expect will be a step up in capital investment spending
chains with the goal of maximum operational efficiency. suggests a portfolio focus on industrials. In fact, many of
Such extreme efficiency comes with high potential fragility. our portfolios, especially those that include developed
And this fragility was fully exposed by COVID-related markets, have had significant overweight exposure to
lockdowns and associated export restrictions. Companies industrial industries for the last several years.
are looking to shore up their supply chains, in some
instances by reducing or duplicating some parts of the The key attribute for any of our company investments is a
chain. Some of this was starting to happen in response to strong and durable competitive advantage, and industrials
chilling economic relations between the U.S. and China have several advantages in this regard, even compared to
prior to the pandemic. COVID has only added more reasons the technology and consumer sectors, which may seem
to accelerate the buildout. counter intuitive.
Shifts in the geopolitical environment in which corporates Many industrial applications are characterized by hard-to-
operate also support investment rather than cash develop products that require domain knowledge, scale,Summary & Outlook June 2021
and manufacturing expertise. Route-to-market, capital and parts revenue for manufacturers. Strong competitive
allocation, and installed bases are other often powerful and advantages, high switching costs, and customer risk
durable advantages. aversion allow for pricing power in many cases.
High entry barriers and consolidated markets are also The increasing focus on environmental and social
powerful attributes. Industry structure is important as it considerations has strengthened the role of efficiency in the
influences how industrial value creation is distributed and customer value proposition. For many industrial
the risk of value destruction. Favorable market structures companies, energy efficiency and safety have been
exist in areas as diverse as North American rails, aircraft cornerstones of their value proposition from the beginning.
production, airlines, HVAC manufacturing, and other niche These companies enable the reduction of emissions and
markets. waste through new, more efficient products and
engineering-driven solutions. For example, Spirax-Sarco
Long duration growth recently implemented solutions at a Nestle factory that
reduced energy use by 45%, emissions by 43%, and water
Although industrial company growth rates may be more use by 48%.
modest compared to the fast-moving technology sector,
growth is often more durable and exploitable over long Potential for strong cash generation and value creating
periods of time. This persistence of growth is what capital allocation
investors tend to underestimate, and where the market is
less efficient. Industrial companies often generate strong cash flow that
can be used to fund value-creating organic and inorganic
Industrial processes are often complex and have been growth.
optimized over many years. Combined with a high risk of
failure, this results in strong inertia and risk aversion that Domain knowledge and customer intimacy provides
slows adoption of new technologies. In contrast, consumer opportunities to develop innovative new products and
technology is fast moving as consumers adopt new solutions. These products add value for customers and long
technologies rapidly in their daily lives. While growth rates competitive advantage periods may allow for the
are slower for industrial companies, predictability and realization of strong returns on capital from the investment
durability of growth allows companies to exploit to develop these products.
opportunities for years if not decades.
Industrial companies often complement organic growth
Once a company has built an installed base it typically opportunities with value creating M&A. The rationale for
provides an attractive aftermarket opportunity that results acquisitions may include scale, new technologies, and
from demanding operating conditions, safety, and quality attractive assets in a multi-industry portfolio of businesses.
considerations. Jet engines are a classic example where the
installed base often provides decades of lucrative servicesSummary & Outlook June 2021 The top industrial companies have demonstrated discipline by returning cash to shareholders after exhausting organic and inorganic investment opportunities. For example, Atlas Copco has paid $9 billion in regular dividends over the past 10 years, and on three occasions has paid special dividends worth a cumulative $3.3 billion. Strategic use of financial leverage Long lived assets and strong competitive advantages allows for the comfortable use of modest leverage to boost returns. Re-leveraging with debt to maintain a constant capital structure is often used to enhance cash flows and returns to equity holders. The strength of business models and competitive advantages can also provide firepower to flex debt levels higher to seek to capitalize on inorganic opportunities. For example, DSV has used leverage to make highly accretive acquisitions the past several years. Stock specific drivers Many industrial companies are cyclical and can be volatile stocks. While we are long term investors, we believe that the market tends to overreact to the economic cycles influencing the best-managed industrial companies. This creates opportunities for active managers to deploy capital into mispriced value creators and protect value when the market is too enthusiastic near term.
Market Performance June 2021
QTD YTD 2020 2019
AC World (DM+EM) 7.2 12.7 16.3 26.4
Developed Markets (DM) 7.4 13.3 15.9 27.5
Japan -0.4 1.5 13.1 19.6
Europe ex UK 7.8 11.6 12.1 25.0
UK 5.7 12.4 -9.0 23.2
USA 8.4 15.1 20.5 30.4
Emerging Markets (EM) 5.7 8.7 18.4 17.6
Asia 4.5 7.5 28.5 17.8
Regions
China 2.4 2.4 29.4 22.7
India 8.0 15.5 16.1 5.3
Korea 6.2 8.1 46.0 9.6
Taiwan 8.3 19.9 39.1 35.2
EMEA 7.6 16.4 -5.6 15.8
Russia 13.6 20.4 -11.6 50.1
South Africa 0.1 12.5 -4.9 11.2
Latin America 15.6 9.6 -14.1 19.4
Brazil 23.6 11.9 -19.1 29.3
Mexico 9.5 13.5 -1.6 12.9
Frontier Markets (FM) 14.1 16.1 2.1 13.8
Large Cap 4.3 6.5 19.6 19.3
Size
Small Cap 11.3 19.8 19.3 11.5
Communication Svcs 2.1 7.8 27.1 10.9
Discretionary 4.2 1.9 33.1 31.6
Staples 4.9 2.9 10.8 9.6
Energy 11.7 15.0 -14.9 19.4
Sectors
Financials 4.4 8.4 -7.9 12.0
Healthcare 14.4 8.6 55.5 2.9
Industrials 14.9 20.6 7.7 6.3
IT 4.1 9.6 58.5 40.8
Materials 9.5 20.0 26.2 7.7
Real Estate -3.5 0.9 -15.6 22.2
Utilities 3.7 7.2 -4.9 9.7
Quality -2.5 -2.4 -6.8 13.7
Valuation -0.9 9.6 -12.4 4.5
Style
Etrend 9.5 15.7 14.5 12.5
Momentum 8.7 13.0 9.7 16.1
Growth -0.2 -3.6 12.9 6.1
Composite 2.3 11.0 -5.3 16.8
Source: FactSet
Past performance is not a reliable indicator of future results. Regional performance is based on IMI region/country indexes. Sector and style values are based on the
MSCI EM IMI Index. Size values are based on the MSCI EM IMI Index. Style values reflect the Quintile 1 minus Quintile 5 spread of William Blair’s proprietary quantitative
models. Sectors are based on Global Industry Classification (GICS) sectors. Large Cap and Small Cap based on MSCI Global Investable Market Index Methodology. Data in blue
reflects the top 20% (highest) values by region, country, sector, and style. Data in red reflects the bottom 20% (lowest) values by region, country, sector, and style. All index
returns are net of dividends. A direct investment in an unmanaged index is not possible. . Please refer to the ‘Important Disclosures’ section at the end of this document for
further information on investment risks and returns.Portfolio Performance June 2021
Since
Periods ended 30/06/2021 Quarter YTD 1 Year 3 Year 5 Year 10 Year Inception*
William Blair SICAV - Emerging Markets 3.88% 4.21% 39.04% 14.21% 13.71% 5.42% 5.17%
Leaders (Class D)
MSCI Emerging Markets (net) 5.05% 7.45% 40.90% 11.27% 13.03% 4.28% 3.96%
*Inception 14/04/2011
The MSCI Emerging Markets Index (net) is a free float-adjusted market capitalization index that is designed to measure equity market performance in the
global emerging markets. This series approximates the minimum possible dividend reinvestment.
Periods greater than one year are annualized. All charges and fees have been included within the performance figures. For the most current month‐end
performance information, please visit the SICAV website at sicav.williamblair.com. Please refer to the ‘Important Disclosures’ section at the end of this
document for further information on investment risks and returns.Performance Analysis (by sector) June 2021
The table below shows the calculated sector attribution of the William Blair SICAV - Emerging Markets Leaders Fund portfolio vs. its
benchmark.
William Blair SICAV - Emerging Markets Leaders Fund vs. MSCI Emerging Markets (net)
01/04/2021 to 30/06/2021
William Blair SICAV - Emerging
MSCI Emerging Markets (net) Attribution Analysis
Markets Leaders Fund
Issue
Average Total Contrib to Average Total Contrib to Allocation Selection Total
GICS Sector Weight Return Return Weight Return Return Effect Effect Effect
Communication Services 21.1% 5.2% 1.1% 11.5% 1.9% 0.2% -0.3% 0.7% 0.4%
Consumer Discretionary 19.6% 0.4% 0.0% 17.2% 3.6% 0.6% -0.1% -0.6% -0.7%
Consumer Staples 8.6% 7.0% 0.6% 5.7% 4.5% 0.3% 0.0% 0.2% 0.2%
Energy 3.6% 4.0% 0.1% 4.9% 12.1% 0.6% -0.1% -0.3% -0.4%
Financials 15.8% -1.2% -0.2% 18.2% 4.2% 0.8% 0.0% -0.9% -0.9%
Health Care 2.4% 38.3% 0.8% 4.7% 14.1% 0.6% -0.2% 0.5% 0.3%
Industrials 5.9% 9.7% 0.5% 4.5% 13.2% 0.6% 0.1% -0.2% -0.1%
Information Technology 18.2% 4.0% 0.8% 20.7% 3.8% 0.8% 0.0% 0.0% 0.1%
Materials 3.4% 19.9% 0.7% 8.5% 8.4% 0.7% -0.2% 0.5% 0.2%
Real Estate 0.0% 0.0% 0.0% 2.1% -6.0% -0.1% 0.2% 0.0% 0.2%
Utilities 0.0% 0.0% 0.0% 2.0% 2.0% 0.0% 0.1% 0.0% 0.1%
Cash 1.2% - -0.1% 0.0% 0.0% 0.0% -0.1% 0.0% -0.1%
Total 100.0% 4.3% 4.3% 100.0% 5.0% 5.0% -0.6% -0.1% -0.7%
Past performance does not guarantee future results. Performance cited represents past performance and current performance may be lower or higher than the
data quoted. Gross investment performance assumes reinvestment of dividends and capital gains, is gross of investment management fees and net of transaction costs.
Attribution by segment is based on estimated returns of equities held within the segments listed. All stocks held during a measurement period, including purchases and sales,
are included. Cash is not allocated among segments. Calculations are for attribution analysis only, and are not intended to represent simulated performance history. The
actual returns may be higher or lower. We calculate attribution using our proprietary attribution system. Our proprietary attribution system runs transactions‐based
attribution, taking into account all trading activity. Interaction effect is reallocated into Selection effect. Sectors are based on Global Industry Classification (GICS) Sectors.Performance Analysis (by region) June 2021
The table below shows the calculated regional attribution of the William Blair SICAV - Emerging Markets Leaders Fund portfolio vs. its
benchmark.
William Blair SICAV - Emerging Markets Leaders Fund vs. MSCI Emerging Markets (net)
01/04/2021 to 30/06/2021
William Blair SICAV - Emerging
MSCI Emerging Markets (net) Attribution Analysis
Markets Leaders Fund
Issue
Average Total Contrib to Average Total Contrib to Allocation Selection Total
Region Weight Return Return Weight Return Return Effect Effect Effect
EM Asia 76.8% 3.2% 2.4% 79.3% 3.8% 3.0% 0.0% -0.5% -0.5%
EMEA 7.5% 14.6% 1.0% 13.1% 7.4% 0.9% -0.1% 0.5% 0.4%
Latin America 14.5% 6.7% 0.9% 7.6% 15.0% 1.1% 0.7% -1.1% -0.5%
Cash 1.2% - -0.1% 0.0% 0.0% 0.0% -0.1% 0.0% -0.1%
Total 100.0% 4.3% 4.3% 100.0% 5.0% 5.0% 0.4% -1.1% -0.7%
Past performance does not guarantee future results. Performance cited represents past performance and current performance may be lower or higher than the
data quoted. Gross investment performance assumes reinvestment of dividends and capital gains, is gross of investment management fees and net of transaction costs.
Attribution by segment is based on estimated returns of equities held within the segments listed. All stocks held during a measurement period, including purchases and sales,
are included. Cash is not allocated among segments. Calculations are for attribution analysis only and are not intended to represent simulated performance history. The
actual returns may be higher or lower. We calculate attribution using our proprietary attribution system. Our proprietary attribution system runs transactions‐based
attribution, taking into account all trading activity. Interaction effect is reallocated into Selection effect. International investing involves special risk considerations,
including currency fluctuations, lower liquidity, economic and political risk.Top Contributors/Detractors June 2021
The tables below show the top contributors and detractors for the William Blair SICAV - Emerging Markets Leaders Fund portfolio vs. its
benchmark.
Top Five Contributors (%) for the Period: 01/04/2021 to 30/06/2021
Issuer Sector Country Contribution To
Relative Return
Zhangzhou Pientzehuang Pharmac Health Care China 0.69
Kakao Corp Communication Services South Korea 0.53
TOTVS SA Information Technology Brazil 0.41
UPL Ltd Materials India 0.38
Sea Ltd Communication Services Thailand 0.31
Top Five Detractors (%) for the Period: 01/04/2021 to 30/06/2021
Issuer Sector Country Contribution To
Relative Return
Tencent Music Entertainment Gr Communication Services China -0.70
Ping An Insurance Group Co of Financials China -0.58
TAL Education Group Consumer Discretionary China -0.40
Midea Group Co Ltd Consumer Discretionary China -0.31
Tencent Holdings Ltd Communication Services China -0.25
Index: MSCI Emerging Markets (net)
Past performance is not indicative of future returns. Gross investment performance assumes reinvestment of dividends and capital gains, is gross of investment
management fees and net of transaction costsAttribution is based on estimated returns of all equities held during a measurement period, including purchases and
sales. Calculations are for attribution analysis only and are not intended to represent simulated performance history. The actual returns may be higher or lower.
We calculate attribution using our proprietary attribution system. Our proprietary attribution system runs transactions‐based attribution, taking into account all
trading activity. Sectors are based on Global Industry Classification (GICS) Sectors. International investing involves special risk considerations, including currency
fluctuations, lower liquidity, economic and political risk. Individual securities listed in this report are for informational purposes only. Holdings are subject to change
at any time. This information does not constitute, and should not be construed as, investment advice or recommendations with respect to the securities listed.Portfolio Positioning June 2021
The chart below shows the region and sector positioning of the William Blair SICAV - Emerging Markets Leaders Fund vs. its benchmark.
Regional Exposure Sectoral Exposure
75.8 -1.9 21.1 -0.1
EM Asia Total Communication Services 1.7
79.1 -1.1 11.3
34.3 -2.4 18.3 -1.8
China Consumer Discretionary -3.1
37.6 -3.2 17.6
8.6 0.2
18.0 -0.9 Consumer Staples -2.4
India 5.6
9.9 1.1
3.7 0.0
8.4 0.9 Energy 0.0
South Korea 5.0
13.2 1.9 -1.0
Financials 15.2
11.6 0.3 17.8 -1.3
Taiwan
13.8 -1.0 3.1 1.0
Health Care 0.6
8.4 1.6 5.0
EMEA Total
13.0 0.9 6.3 0.8
Industrials 2.9
3.6 4.9
0.9
Russia 19.1 0.9
3.2 1.4 Information Technology
20.4 0.7
3.1 0.3
South Africa 3.2 0.0
3.5 -0.5 Materials
8.4 0.5
14.4 0.3 0.0
Latin America Total Real Estate --
7.8 -0.3 2.0 0.0
5.9 0.5 -- 0.0
Brazil Utilities
5.2 0.5 1.9 0.0
3.2 0.0 -- 0.0
Mexico Other 0.0
1.7 0.2 --
1.4 0.0 1.4 0.0
Cash & Equivalents Cash & Equivalents 0.4
-- 0.4 --
William Blair Sicav - Emerging Leaders Growth Fund William Blair Sicav - Emerging Leaders Growth Fund Portfolio Diff Previous QTR
Portfolio Diff Previous QTR
MSCI Emerging Markets (net) Portfolio Diff YTD
MSCI Emerging Markets (net) Portfolio Diff YTD
Source: William Blair.
As of Date: 30/06/2021
Cash & Equivalents includes: cash and dividend accruals.Top Holdings by Market Cap June 2021
The table below shows the William Blair SICAV - Emerging Markets Leaders Fund portfolio’s largest holdings as of 30/06/2021 by market cap
as well as the sub-totals by market cap for the portfolio and index. The stocks are listed by country and by the sector that defines each one’s role
in the portfolio.
% of Total % of Total
Net Assets in Net Assets in
Country Sector Portfolio Index*
Large Cap(>$20b) 64.0% 51.7%
Taiwan Semiconductor Manufactu Taiwan Information Technology 7.9% 6.1%
Tencent Holdings Ltd China Communication Services 7.6% 5.0%
Alibaba Group Holding Ltd China Consumer Discretionary 7.3% 5.0%
Reliance Industries Ltd India Energy 3.7% 0.9%
NetEase Inc China Communication Services 3.6% 0.5%
Mid Cap($5-20b) 20.8% 28.7%
LG Household & Health Care Ltd South Korea Consumer Staples 2.3% 0.2%
UPL Ltd India Materials 2.2% 0.1%
Capitec Bank Holdings Ltd South Africa Financials 2.0% 0.1%
Zhangzhou Pientzehuang Pharmac China Health Care 2.0% 0.0%
Tencent Music Entertainment Gr China Communication Services 1.8% 0.1%
Small Cap(Top Portfolio Changes June 2021
Top Portfolio Changes During the Period: 01/04/2021 to 30/06/2021
Security Name Country Sector
Aier Eye Hospital Group Co-A China Health Care
Purchases
New Ememory Technology Inc Taiwan Information Technology
Maruti Suzuki India Ltd India Consumer Discretionary
Liquidations
Jiangsu Hengrui Medicine C-A China Health Care
Individual securities listed in this report are for informational purposes only. Holdings are subject to change at any time. This information does not
constitute, and should not be construed as, investment advice or recommendations with respect to the securities listed. Sectors are based on Global Industry
Classification (GICS) Sectors.Portfolio Characteristics June 2021
William Blair SICAV - Emerging
Markets Leaders Fund MSCI Emerging Markets (net) Difference
Quality
WB Quality Model (Percentile) 32 39
Return on Equity (%) 18.3 16.1 14%
Cash Flow ROIC (%) 21.9 19.7 11%
Debt/Equity (%) 60.7 71.2 -15%
Growth
WB Growth Model (Percentile) 38 45
Long-Term Growth (%) 21.4 21.6 -1%
5-Year Historic EPS Growth (%) 13.4 11.4 18%
Reinvestment Rate (%) 14.7 12.2 20%
Earnings Trend
WB Earnings Trend Model (Percentile) 60 56
EPS Revision Breadth (%) 0.0 2.1 -2.1
Valuation
WB Valuation Model (Percentile) 72 54
P/E (next 12 months) 24.9 14.0 78%
Dividend Yield (%) 0.9 2.0 -52%
Other
WB Composite Model (Percentile) 57 48
Float Adjusted Weighted Average Market Cap ($m) 129,528 109,126 19%
Number of Holdings 52 1,412
Active Share (%) 75 --
Characteristics have been calculated by William Blair.
Please refer to the ‘Important Disclosures’ section of this document for further information on investment risks and returns.Holdings June 2021
Portfolio Portfolio Portfolio
Weight Weight Weight
EM Asia 75.76 EM Asia (continued) Latin America (continued)
China 34.35 Indonesia 1.44 Argentina (continued)
Tencent Holdings Ltd 7.48 Bank Central Asia Tbk Pt 1.44 Globant SA 1.62
Alibaba Group Holding Ltd 7.19 South Korea 8.37 Brazil 5.92
Netease Inc 3.58 Lg Household & Health Care 2.27 B3 Sa-Brasil Bolsa Balcao 1.91
Ping An Insurance Group Co-H 2.94 Naver Corp 2.20 Rumo SA 1.91
Zhangzhou Pientzehuang Pha-A 1.97 Kakao Corp 1.91 Totvs SA 1.43
Tencent Music Entertainm-Adr 1.80 Coupang Inc 1.14 Raia Drogasil SA 0.68
Midea Group Co Ltd-A 1.75 Douzone Bizon Co Ltd 0.85 Mexico 3.25
China Tourism Group Duty F-A 1.70 Taiwan 11.61 Grupo Aeroport Del Pacific-B 1.89
Kweichow Moutai Co Ltd-A 1.47 Taiwan Semiconductor-Sp Adr 7.81 Walmart De Mexico Sab De Cv 1.36
Travelsky Technology Ltd-H 1.13 Mediatek Inc 2.31 Peru 1.34
Aier Eye Hospital Group Co-A 1.09 E.Sun Financial Holding Co 0.92 Credicorp Ltd 1.34
Shenzhou International Group 0.93 Ememory Technology Inc 0.57 Cash 1.40
Foshan Haitian Flavouring -A 0.90 Thailand 2.01 Total 100.00
Tal Education Group- Adr 0.43 Sea Ltd-Adr 2.01
India 17.99 EMEA 8.44
Reliance Industries Ltd 3.54 Poland 0.87
Infosys Ltd 2.56 Allegro.Eu SA 0.87
Hdfc Bank Limited 2.34 Russia 3.63
Upl Ltd 2.13 Yandex Nv-A 2.16
Motherson Sumi Systems Ltd 1.98 Headhunter Group Plc-Adr 1.47
Housing Development Finance 1.35 South Africa 3.07
Asian Paints Ltd 1.08 Capitec Bank Holdings Ltd 1.98
Interglobe Aviation Ltd 1.02 Clicks Group Ltd 1.09
Bajaj Finance Ltd 1.00 United Arab Emirates 0.87
Britannia Industries Ltd 0.85 Network International Holdin 0.87
Reliance Industries-Partly P 0.13 Latin America 14.40
Britannia Indus Fixed Coupon 0.01 Argentina 3.89
5.500000 Maturity 20240603 Mercadolibre Inc 2.28
As of Date: 30/06/2021
Brittania Indus Fixed Coupon is a special dividend with the tradeable date not yet established.
Information about the Fund’s holdings should not be considered investment advice. There is no guarantee that the Fund will continue to hold any one particular security or
stay invested in any one particular sector. Holdings are subject to change at any time. Please refer to the ‘Important Disclosures’ section at the end of this document for
further information on investment risks and returns.Important Disclosures June 2021 GENERAL INFORMATION Recipients of this document should be aware of the risks detailed in this paragraph. Please be advised that any return estimates or indications of past performance on this document are for information purposes only. Both past performance and yield may not be a reliable guide to future performance. The value of investments and income from them may fall as well as rise and investors may not get back the full amount invested. The value of shares and any income from them can increase or decrease. An investor may not get back the amount originally invested. Where investment is made in currencies other than the investor's base currency, the value of those investments, and any income from them, will be affected by movements in exchange rates. This effect could be unfavourable as well as favourable. Levels and bases for taxation may change. Specific securities identified and described to do not represent all of the securities purchased or sold and you should not assume that investments in the securities identified and discussed were or will be profitable. Holdings are subject to change at any time. References to specific securities and their issuers are for illustrative purposes only and are not intended and should not be interpreted as investment advice, offer or a recommendation to buy or sell any particular security or product. Any discussion of particular topics is not meant to be complete, accurate, comprehensive or up-to-date and may be subject to change. Factual information has been taken from sources we believe to be reliable, but its accuracy, completeness or interpretation cannot be guaranteed. Information and opinions expressed are those of the author and may not reflect the opinions of other investment teams within William Blair. Information is current as of the date appearing in this material only and subject to change without notice. Further specific risks may arise in relation to specific investments and you should review the risk factors very carefully before investing. Intended risk profile of the Fund may change overtime. The Fund is designed for long-term investors. The most current month-end performance information is available on sicav.williamblair.com. FUND INFORMATION The SICAV has appointed FUNDROCK MANAGEMENT COMPANY S.A., a "société anonyme" incorporated under the laws of the Grand Duchy of Luxembourg and having its registered office at 33, rue de Gasperich, L-5826 Hesperange as its management company (the "Management Company").The Management Company is authorised and regulated by the Luxembourg Supervisory Authority of the Financial Sector (the "CSSF") as the management company of UCITS (defined below) under the EU directive 2009/65/EC, as amended.
Important Disclosures June 2021
The Management Company has been appointed as the management company of WILLIAM BLAIR SICAV, a "société d'investissement á capital
variable", incorporated under the laws of the Grand Duchy of Luxembourg having its registered office at 31, Z.A.I. Bourmicht, Bertrange, registered in
the R.C.S. Luxembourg under n° 98806 and approved by the CSSF as an undertaking for collective investment in transferable securities (UCITS) in
accordance with the EU directive 2009/65/EC, as amended (the "Fund").
The Management Company has appointed WILLIAM BLAIR INVESTMENT MANAGEMENT, LLC, having its registered office at 150 North Riverside
Plaza Chicago, IL 60606-1598, USA ("William Blair Group") as the investment manager for the Fund (the "Investment Manager").
The Articles of Incorporation, the Prospectus, the Key Investor Information Documents (KIID), the Annual and Half-yearly Reports of the Fund and
the Subscription Form are available free of charge in English and German from our website SICAV.williamblair.com or at the registered office of the
Management Company (33, rue de Gasperich, L-5826 Hesperange, Grand Duchy of Luxembourg), at the registered office of the Fund (William Blair
SICAV, 31, Z.A. Bourmicht, L-8070 Bertrange, Grand Duchy of Luxembourg) or from the Swiss representative, First Independent Fund Services
Limited, Klausstrasse 33, CH-8008 Zurich, and in German language at Marcard, Stein & Co., Ballindamm 36, 20095 Hamburg, Germany, and at Bank
of Austria Creditanstalt AG, Am Hof 2, 1010 Vienna, Austria.
This is a marketing document and does not contain personalized recommendations or investment advice. Recipients of this document should make
their own investment decisions based upon the Fund Documents listed above (which can be obtained free of charge) and in accordance with their
own financial objectives and financial resources and, if in any doubt, should seek advice from independent professional advice as to risks and
consequences of any investment.
William Blair makes no representations that this document or any contents contained on it are appropriate or available for use in any jurisdiction.
This information is not intended to be published or made available to any person in any jurisdiction where doing so would result in contravention of
any laws or regulations applicable to the user. The SICAV Fund is currently registered for marketing in: Austria, Denmark, Finland, France, Germany,
Ireland, Luxembourg, Norway, Singapore, Spain, Sweden, Switzerland and the UK. Therefore the SICAV Fund is either not registered to be marketed
in your jurisdiction or may only be marketed or offered to professional investors in your jurisdiction.
To the extent permitted by applicable law, William Blair will accept no liability for any direct or consequential loss, damages, costs or prejudices
whatsoever arising from the use of this document or its contents.
Copyright © 2021 William Blair. "William Blair" refers to William Blair & Company, L.L.C., William Blair Investment Management, LLC, and affiliates.
No part of this material may be reproduced in any form, or referred to in any other publication, without express written consent.You can also read
