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How do you fund an allocation to the Fund? The Macro Allocation Fund is an alternative
investment and typically goes into the alternative bucket of a portfolio. But it is a broadly
diversified portfolio, and we find that it’s funded in many different ways. First, we find
that funding comes pro rata from equities and bonds. Why is that the case? Well, the
Macro Allocation Fund invests in equities and bonds and currencies all around the world,
and over time tends to have a positive but very low correlation to the equity market.
It looks a lot like a balance portfolio in terms of its risk level, and therefore, the
funding source tends to be more balanced. However, the Macro Allocation Fund is often
considered something like diversified growth. Because it has a positive but low correlation
to the equity market, it has growth characteristics to it, and because of those growth characteristics
it also is funded from equities. Finally, we’re in a very low interest rate
environment, and in a low interest rate environment, many investors are looking to put money in
some place other than bonds. So they often pursue diversifying contributors to the portfolio.
The Macro Allocation Fund does provide diversification because of its ability to go both long and
short and because of the active currency management. And therefore, it is sometimes funded from
the fixed income portion of the portfolio.
any specific security. Not all securities held in any William Blair strategy portfolio
performed as favorably as those discussed, and there is no guarantee that these or other
securities will perform favorably in the future. Investments are subject to market risk.
The Fund involves a high level of risk and may not be appropriate for everyone. You could
lose money by investing in the Fund. There can be no assurance that the Fund’s investment
objective will be achieved. The Fund is not a complete investment program and you should
or other techniques that are intended to provide inverse exposure to a particular market or
carefully before you invest or send money. © William Blair & Company, L.L.C., distributor.