N-CSR 1 fp0073723_ncsr.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number 811-07655

 

Driehaus Mutual Funds

 


(Exact name of registrant as specified in charter)

 

25 East Erie Street
Chicago, IL 60611

 

(Address of principal executive offices) (Zip code)

 

Janet L. McWilliams
Driehaus Capital Management LLC
25 East Erie Street
Chicago, IL 60611

 


(Name and address of agent for service)

 

Registrant's telephone number, including area code: 312-587-3800

 

Date of fiscal year end: December 31

 

Date of reporting period: December 31, 2021

 

 

 

Item 1. Reports to Stockholders.

 

(a)       The Reports to Shareholders are attached herewith.



0


Table of Contents

Portfolio Managers’ Letter, Performance Overview and Schedule of Investments:  
Driehaus Emerging Markets Growth Fund 1
Driehaus Emerging Markets Small Cap Growth Fund 8
Driehaus Emerging Markets Opportunities Fund 14
Driehaus International Small Cap Growth Fund 21
Driehaus Micro Cap Growth Fund 27
Driehaus Small Cap Growth Fund 34
Driehaus Small/Mid Cap Growth Fund 41
Driehaus Event Driven Fund 48
Statements of Assets and Liabilities 56
Statements of Operations 58
Statements of Changes in Net Assets 60
Financial Highlights 64
Notes to Financial Statements 74
Report of Independent Registered Public Accounting Firm 97
Interested and Independent Trustees of the Trust 99
Officers of the Trust 100
Fund Expense Examples 101
Shareholder Information 104
Results of Special Meeting of Shareholders of Driehaus Mutual Funds 106


Driehaus Emerging Markets Growth Fund — Portfolio Managers’ Letter

Dear Fellow Shareholders,
The Driehaus Emerging Markets Growth Fund (“Fund”) Investor class (DREGX) returned -1.92% and the Institutional class (DIEMX) returned -1.69% for the year ended December 31, 2021. The Fund’s primary benchmark, the Morgan Stanley Capital International (“MSCI”) Emerging Markets Index (“Benchmark”), returned -2.54% for the year, while the MSCI Emerging Markets Growth Index returned -8.41%.
Going into 2021, many market observers had positive outlooks for emerging markets (EM) given the asset class was expected to benefit from global reopening after the 2020 lockdowns. At the beginning of the year, it appeared that vaccines were on the cusp of being widely distributed, and some countries were beginning to emerge from their restrictive lockdowns. Rebounding global growth, the resumption of tourism, and rising commodity prices were expected to further support EM equities. However, EM performance ultimately lagged developed markets in 2021. While new virus variants, supply chain bottlenecks, and rising inflation weighed on EM, these risks were also present in developed markets. Thus, the underperformance of EM this year seemed to be for different reasons.
Given both its massive economy and large index weight, China was and is the dominant influence within EM. Considering the MSCI China Index declined by over 20% in 2021, it is not surprising that broad EM equities underperformed developed markets. Outside of China, however, EM performance among other constituents fared better over the same time period.
Over the course of 2021, security selection within the consumer discretionary and health care sectors contributed to the Fund’s returns versus the Benchmark. From a geographic perspective, security selection in China and the Netherlands made key contributions to performance versus the Benchmark in the past year.
EPAM Systems, Inc. (Ticker: EPAM-US) was a notable contributor to the Fund’s returns for the year. EPAM Systems, Inc. is a leading information technology services and software engineering company that specializes in digital transformation, which is becoming even more critical for companies striving to better manage their customers, employees, and data in the current environment. The company seems to be benefitting from an acceleration in demand and has a strong historical track record of consistent execution.
Contemporary Amperex Technology Co., Ltd. Class A (Ticker: 300750-CN) was also a significant contributor to the Fund’s return. The company reported its third quarter results in October which showed strong gross margin performance. This appeared to alleviate fears that profitability could face pressure from rising battery material prices. The results also showed strong volume growth. In addition to these positive developments, we view the company’s retention of its leading market share with >50% in the China market as yet another profit driver. The company also announced new capacity plans that were ahead of estimates, which we believe will support its ability to meet surging demand.
During 2021, security selection within the energy and consumer staples sectors detracted from the Fund’s returns versus the Benchmark. At the country level, positions in Saudi Arabia and Taiwan detracted from the Fund’s performance relative to the Benchmark.
Based upon our previous discussion of the Chinese market, it should come as no surprise that two Chinese companies were notable detractors from the Fund’s returns. First, Tencent Holdings Ltd. (Ticker: 700-HK) underperformed as the Chinese government’s crackdown on the Internet industry continued. The near-term earnings revision profile for Tencent has become slightly less attractive to us, as new game approvals remain on hold while the company also experiences muted advertising demand at the same time. We thus trimmed our position during the final quarter of 2021.
Another significant detractor from the Fund’s return for the year was Alibaba Group Holding Ltd. (Ticker: 9988-HK). COVID-19 lockdowns continued to pressure consumption and ecommerce in China. In the midst of this environment, Alibaba still committed to a multi-year investment cycle. While we believe this will suppress earnings growth in the medium-term, our larger concern is that these investments may not ultimately create meaningful value for shareholders in the long-term. We further became increasingly uneasy about a slowdown in the company’s cloud business and their positioning in the market. As a result, we sold out of the company during the fourth quarter.
Two policy pivots will likely define the market landscape in 2022. First, the U.S. Federal Reserve statements have become meaningfully more hawkish over the last few months with headline U.S. inflation that is running at multi-decade highs. While obviously a supremely important subject for consumers and investors alike, we will not dwell on the
1

specifics of Fed policy dynamics here given how widely this matter is being covered elsewhere. The second pivot is that the Chinese government seems to have indicated the support of economic growth to be a priority this year. As we noted earlier, what happens in China should be the key determinant of EM returns in 2022.
From our perspective, China did show signs that it was beginning to adopt a more supportive stance in late 2021. For example, the government announced small cuts to the Reserve Requirement Ratio (RRR) and one of their benchmark lending rates. While we believe that these moves were ostensibly done to support growth, the actual impact was not very meaningful, and it appears that more aggressive steps are now being taken as a result. For example, China recently announced that it would relax its “three red lines” policies for property developers, which should make acquisitions of troubled assets easier. This is significant for two key reasons. First, the three red lines policy, initially announced in August 2020, was the clearest indication of how serious China was about reigning in the property sector. Any relaxation, even if it only pertains to M&A activity, is a clear signal of a more accommodative stance and should provide more flexibility for the industry as a whole. This support could further foster a revival of consumer confidence in the Chinese property market. We believe that this is important, as many potential property buyers have lost confidence and put purchases on hold due to fears that they will pay for a unit that will never be finished if the developer goes bankrupt. This behavior seems to have exacerbated home price declines which of course makes the incentive to wait even stronger (i.e., why buy today if prices are falling?). When stronger developers start buying distressed assets in M&A transactions and projects under-construction begin to get completed, buyer confidence should increase. We perceive a resulting significant positive impact on the broader Chinese economy because of increased material and construction demand coupled with the impact of elevated property prices on household wealth. The third set of factors that could support EM going forward are light positioning and low valuation. 2020 saw the largest outflows in EM since 2008 as risk-aversion increased during the pandemic. The outflows were sharpest in the first half of the year but started to turn positive in November after the vaccine announcements.
Beyond property, local Chinese government financing also increased in the fourth quarter of 2021. We have seen this as a historically leading indicator for infrastructure investment. It is our belief that these events, particularly in China, may bode well for EM returns in 2022.
Sincerely,
Howard Schwab
Lead Portfolio Manager
Chad Cleaver
Portfolio Manager
Rich Thies
Portfolio Manager

Performance is historical and does not represent future results.
Please see the following performance overview page for index description.
2


Driehaus Emerging Markets Growth Fund
Performance Overview (unaudited)

The performance summarized below is historical and does not represent future results. Investment returns and principal value vary, and you may have a gain or loss when you sell shares. Performance data presented measures the change in the value of an investment in the Fund, assuming reinvestment of all dividends and capital gains. Average annual total return reflects annualized change.
The table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The graph compares the results of a $10,000 investment (minimum investment) in the Fund over the last 10 fiscal year periods, with all dividends and capital gains reinvested, with the indicated indices (and dividends reinvested) for the same period.
Average Annual Total Returns as of 12/31/21 1 Year 3 Years 5 Years 10 Years
Driehaus Emerging Markets Growth Fund Investor Class (DREGX) (1.92)% 16.11% 13.31% 8.04%
Driehaus Emerging Markets Growth Fund Institutional Class (DIEMX)1 (1.69)% 16.37% 13.52% 8.14%
MSCI Emerging Markets Index-N2 (2.54)% 10.94% 9.88% 5.49%
MSCI Emerging Markets Growth Index-N3 (8.41)% 14.60% 12.55% 7.52%

1 The returns for the periods prior to July 17, 2017 (institutional share class inception date) include the performance of the investor share class.
2 The Morgan Stanley Capital International Emerging Markets Index-Net (MSCI Emerging Markets Index-N) is a market capitalization-weighted index designed to measure equity market performance in emerging markets. Data is in U.S. dollars and is calculated with net dividend reinvestment. Source: Morgan Stanley Capital International Inc.
3 The Morgan Stanley Capital International Emerging Markets Growth Index-Net (MSCI Emerging Markets Growth Index-N) is a subset of the MSCI Emerging Markets Index and includes only the MSCI Emerging Markets Index stocks which are categorized as growth stocks. Data is in U.S. dollars and is calculated with net dividend reinvestment. Source: Morgan Stanley Capital International Inc.
3


Driehaus Emerging Markets Growth Fund
Schedule of Investments
December 31, 2021

  Shares,
Principal
Amount, or
Number of
Contracts
Value
COMMON STOCKS — 97.93%
FAR EAST — 67.74%
China — 20.88%
BYD Co. Ltd. - H 499,847 $17,089,882
Changzhou Xingyu Automotive Lighting Systems Co. Ltd. - A 147,189 4,717,041
China Mengniu Dairy Co. Ltd. * 2,563,351 14,530,220
China Merchants Bank Co. Ltd. - H 5,004,917 38,864,480
Contemporary Amperex Technology Co. Ltd. - A 348,815 32,181,383
East Money Information Co. Ltd. - A 5,874,544 34,205,611
JD.com, Inc. - ADR * 488,531 34,231,367
Li Ning Co. Ltd. 1,619,705 17,728,879
Meituan - B 1,* 404,700 11,698,467
NARI Technology Co. Ltd. - A 3,574,525 22,451,024
Proya Cosmetics Co. Ltd. - A 692,765 22,642,704
Shanghai MicroPort MedBot Group Co. Ltd. * 252,000 1,892,210
Shenzhou International Group Holdings Ltd. 619,894 11,916,834
Sungrow Power Supply Co. Ltd. - A 440,026 10,066,259
Sunny Optical Technology Group Co. Ltd. 608,958 19,258,491
Techtronic Industries Co. Ltd. 1,956,169 38,934,977
Tencent Holdings Ltd. 1,541,845 90,325,140
Wuxi Biologics Cayman, Inc. 1,* 1,008,827 11,973,881
Yum China Holdings, Inc. 241,891 12,055,847
Zhangzhou Pientzehuang Pharmaceutical Co. Ltd. - A 571,857 39,223,844
    485,988,541
India — 17.74%
Apollo Hospitals Enterprise Ltd. 494,947 33,380,582
Bharti Airtel Ltd. * 1,469,782 13,520,255
Clean Science & Technology Ltd. * 256,215 8,593,907
Havells India Ltd. 844,167 15,864,546
HDFC Bank Ltd. - ADR 2 587,268 38,213,529
Hindalco Industries Ltd. 2,024,052 12,948,537
Hindustan Unilever Ltd. 230,345 7,313,432
Housing Development Finance Corp. Ltd. 1,171,273 40,753,515
ICICI Bank Ltd. - SP ADR 2 3,527,360 69,806,454
Infosys Ltd. - SP ADR 2 1,057,881 26,774,968
Power Grid Corp. of India Ltd. 7,341,571 20,187,045
Reliance Industries Ltd. 1,399,455 44,583,176
Tata Consultancy Services Ltd. 636,761 32,022,798
Tata Motors Ltd. - ADR 2,* 584,420 18,754,038
Titan Co. Ltd. 888,679 30,155,167
    412,871,949
Taiwan — 14.60%
Chailease Holding Co. Ltd. 3,270,179 31,105,356
Delta Electronics, Inc. 1,217,293 12,078,207
  Shares,
Principal
Amount, or
Number of
Contracts
Value
MediaTek, Inc. 803,000 $34,456,351
Merida Industry Co. Ltd. 1,080,893 12,761,848
Silergy Corp. 145,463 26,328,267
Taiwan Semiconductor Manufacturing Co. Ltd. - SP ADR 2 1,527,529 183,777,014
TXC Corp. 2,976,000 11,318,676
Unimicron Technology Corp. 1,979,484 16,473,209
Win Semiconductors Corp. 842,000 11,361,395
    339,660,323
South Korea — 8.55%
Ecopro BM Co. Ltd. 14,513 6,097,573
KB Financial Group, Inc. 475,088 21,970,117
Kia Corp. 241,722 16,681,985
Macquarie Korea Infrastructure Fund 1,000,206 11,826,764
Samsung Biologics Co. Ltd. 1,* 12,239 9,293,154
Samsung Electronics Co. Ltd. 2,027,665 133,166,839
    199,036,432
Indonesia — 2.44%
Bank Central Asia Tbk PT 80,702,800 41,331,999
Bank Jago Tbk PT * 13,808,555 15,488,330
    56,820,329
Thailand — 1.24%
Airports of Thailand PCL - NVDR * 8,999,100 16,386,541
The Siam Commercial Bank PCL - NVDR 3,305,200 12,545,722
    28,932,263
Singapore — 0.97%
Sea Ltd. - ADR * 100,676 22,522,228
Australia — 0.59%
Lynas Rare Earths Ltd. * 1,852,585 13,707,617
Vietnam — 0.52%
Masan Group Corp. 1,597,900 11,989,509
Philippines — 0.21%
International Container Terminal Services, Inc. 1,240,557 4,865,645
Total FAR EAST
(Cost $1,122,702,896)
  1,576,394,836
NORTH AMERICA — 13.95%
United States — 9.05%
Ball Corp. 349,373 33,634,139
EPAM System, Inc. * 27,943 18,678,498
Freeport-McMoRan, Inc. 298,190 12,443,469
Liberty Media Corp.-Liberty Formula One - C * 360,546 22,800,929
MELI Kaszek Pioneer Corp. - A * 770,561 8,907,685
Micron Technology, Inc. 387,175 36,065,351
NIKE, Inc. - B 88,387 14,731,461
NVIDIA Corp. 92,790 27,290,467
ROBLOX Corp. - A * 213,521 22,026,827
 
Notes to Financial Statements are an integral part of this Schedule.
4


Driehaus Emerging Markets Growth Fund
Schedule of Investments
December 31, 2021

  Shares,
Principal
Amount, or
Number of
Contracts
Value
Schlumberger NV 468,055 $14,018,247
    210,597,073
Mexico — 3.01%
Cemex SAB de CV - SP ADR 2,* 2,056,857 13,945,491
Grupo Financiero Banorte SAB de CV - O 6,027,430 39,201,624
Wal-Mart de Mexico SAB de CV 4,518,963 16,821,829
    69,968,944
Canada — 1.89%
Cameco Corp. 2 706,178 15,401,742
Nutrien Ltd. 2 380,726 28,630,595
    44,032,337
Total NORTH AMERICA
(Cost $284,334,204)
  324,598,354
EUROPE — 7.82%
Russia — 4.73%
LUKOIL PJSC - SP ADR 2 439,196 39,308,042
Polyus PJSC 2 82,612 14,400,825
Sberbank of Russia PJSC - SP ADR 2 1,596,824 25,629,025
Yandex NV - A 2,* 506,308 30,631,634
    109,969,526
Netherlands — 1.25%
ASML Holding NV 14,334 11,532,821
Heineken NV 157,005 17,671,244
    29,204,065
France — 0.96%
L'Oreal SA 46,852 22,240,531
Germany — 0.53%
Infineon Technologies AG 266,217 12,256,224
Greece — 0.35%
OPAP SA 578,534 8,213,502
Total EUROPE
(Cost $163,213,154)
  181,883,848
SOUTH AMERICA — 4.95%
Brazil — 3.19%
Banco BTG Pactual SA * 6,096,457 22,898,826
Petroleo Brasileiro SA - ADR 2 1,756,629 19,287,786
Vale SA - SP ADR 2 2,290,975 32,119,470
    74,306,082
Uruguay — 0.91%
Globant SA * 67,733 21,274,258
Argentina — 0.85%
MercadoLibre, Inc. 2,* 14,641 19,741,924
Total SOUTH AMERICA
(Cost $111,301,446)
  115,322,264
MIDDLE EAST — 1.93%
Saudi Arabia — 0.99%
Saudi Arabian Oil Co. 1 2,402,670 22,900,355
Qatar — 0.55%
Qatar National Bank QPSC 2,319,418 12,858,941
  Shares,
Principal
Amount, or
Number of
Contracts
  Value
Israel — 0.39%
ICL Group Ltd. 945,936   $9,111,362
Total MIDDLE EAST
(Cost $42,628,051)
    44,870,658
AFRICA — 1.54%
South Africa — 1.54%
Capitec Bank Holdings Ltd. 139,838   17,900,317
MTN Group Ltd. * 1,676,774   17,963,106
      35,863,423
Total AFRICA
(Cost $30,927,554)
    35,863,423
Total COMMON STOCKS
(Cost $1,755,107,305)
    2,278,933,383
SHORT TERM INVESTMENTS — 2.94%
Northern Institutional U.S. Government Select Portfolio (Shares Class), 0.01% 3
(Cost $68,460,869)
68,460,869   68,460,869
TOTAL INVESTMENTS
(Cost $1,823,568,174)
100.87%   $2,347,394,252
Liabilities in Excess of Other Assets (0.87)%   (20,290,209)
Net Assets 100.00%   $2,327,104,043
    
ADR American Depositary Receipt
NVDR Non-Voting Depositary Receipt
PCL Public Company Limited
PJSC Public Joint Stock Company
SP ADR Sponsored American Depositary Receipt
    
1 Security is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. The total value of these securities is $55,865,857, which represents 2% of Net Assets (see Note F in the Notes to Financial Statements).
2 Foreign security denominated and/or traded in U.S. dollars.
3 7 day current yield as of December 31, 2021 is disclosed.
* Non-income producing security.
Percentages are stated as a percent of net assets.
 
Notes to Financial Statements are an integral part of this Schedule.
5


Driehaus Emerging Markets Growth Fund
Schedule of Investments
December 31, 2021

Security Type   Percent of
Net Assets
Common Stocks   97.93%
Short Term Investments   2.94%
Total Investments   100.87%
Liabilities In Excess of Other Assets   (0.87)%
Net Assets   100.00%
    
Regional Weightings   Percent of
Net Assets
Far East   67.74%
North America   16.89%
Europe   7.82%
South America   4.95%
Middle East   1.93%
Africa   1.54%
Notes to Financial Statements are an integral part of this Schedule.
6


Driehaus Emerging Markets Growth Fund
Schedule of Investments
December 31, 2021

Industry   Percent of
Net Assets
Auto Components   0.20
Automobiles   2.26
Banks   14.34
Beverages   0.76
Capital Markets   2.96
Chemicals   1.99
Construction Materials   0.60
Containers & Packaging   1.45
Diversified Financial Services   1.34
Electric Utilities   0.87
Electrical Equipment   3.72
Electronic Equipment, Instruments & Components   2.54
Energy Equipment & Services   0.60
Entertainment   2.90
Food & Staples Retailing   0.72
Food Products   1.15
Health Care Providers & Services   1.51
Holding Companies - Diversified   0.38
Hotels, Restaurants & Leisure   0.87
Household Products   0.31
Industry   Percent of
Net Assets
Interactive Media & Services   5.20
Internet & Direct Marketing Retail   2.82
IT Services   4.24
Leisure Products   0.55
Life Sciences Tools & Services   0.92
Machinery   1.67
Metals & Mining   3.69
Money Market Fund   2.94
Oil, Gas & Consumable Fuels   6.08
Personal Products   1.93
Pharmaceuticals   1.69
Semiconductors & Semiconductor Equipment   14.74
Technology Hardware, Storage & Peripherals   5.72
Textiles, Apparel & Luxury Goods   3.20
Thrifts & Mortgage Finance   1.75
Transportation Infrastructure   0.91
Wireless Telecommunication Services   1.35
Liabilities In Excess of Other Assets   (0.87)
TOTAL   100.00
 
Notes to Financial Statements are an integral part of this Schedule.
7


Driehaus Emerging Markets Small Cap Growth Fund — Portfolio Managers’ Letter

Dear Fellow Shareholders,
The Driehaus Emerging Markets Small Cap Growth Fund (“Fund”) returned 15.93% for the year ended December 31, 2021. The Fund’s primary benchmark, the Morgan Stanley Capital International (“MSCI”) Emerging Markets Small Cap Index (“Benchmark”), returned 18.75% for the same period, and the Fund’s secondary benchmark, the MSCI Emerging Markets Small Cap Growth Index, returned 20.41%.
After facing macro and stylistic headwinds between 2016 and 2020, small caps handily outperformed large caps in emerging markets in 2021. While the regulatory constraints faced by many large technology firms in China were a significant driver of the relative outperformance, 2021 has demonstrated both the low correlation* and strong return potential of small caps.
Regarding countries, security selection in Vietnam and Brazil contributed to the Fund’s performance for 2021. At the sector level, key contributions to performance relative to the Benchmark came from security selection within the financials and healthcare sectors.
Max Healthcare Institute Ltd (Ticker: 543220-IN) was the most significant contributor to the Fund’s returns for the year. Max Healthcare Institute Ltd is an India-based hospital operator, with operations concentrated in Delhi and Mumbai. The company performed well during the fourth quarter of 2021 due to growing optimism about the company’s ability to double its capacity in the coming years, as well as positive changes in its payor mix, which we expect to mostly accrue directly to the bottom line.
Silergy Corp. (Ticker: 6415-TW) also made a notable contribution to the Fund’s returns for the year. The company is a fabless design house focused on power management integrated circuits (PMICs). Silergy’s earnings were 18% ahead of consensus during the first quarter, as strong pricing power led to better-than-expected profit margins. With 50% of the company’s sales in China, Silergy appears to be the preferred way to get exposure to the localization of semiconductors in China, while also maintaining exposure to the attractive end markets of 5G, datacenters, and auto electronics.
Security selection within the industrials and information technology sectors relative to the Benchmark detracted from performance. From a geographic perspective, security selection in Taiwan and China were the top detractors.
In regard to detractors, Burger King (Ticker: 543248-IN) was the Fund’s most notable detractor during the year. We view the decline as largely a timing phenomenon, as the stock rose by nearly 200% in the final three weeks of 2020 following its initial public offering, with a corresponding price correction in early 2021.
Maanshan Iron & Steel Co. Ltd.(Ticker: 323-HK) was also a significant detractor from Fund performance for the year. Fixed asset investments in China deteriorated during the fourth quarter of 2021, as a result of financial stress in the property sector and a power crunch which curtailed economic activity and ultimately pressured Maanshan’s revenue and earnings.
We are pleased to close out 2021 with a full pipeline of investment ideas and remain excited about the opportunity set in the EM small cap investment universe.
We thank you for investing alongside us in the Driehaus Emerging Markets Small Cap Growth Fund and would like to express our gratitude for your continued confidence in our management capabilities.
Sincerely,
Chad Cleaver, CFA
Lead Portfolio Manager
Howard Schwab
Portfolio Manager
Rich Thies
Portfolio Manager

*    Correlation: Shows the strength of a relationship between two variables and is expressed numerically by the correlation coefficient.
Performance is historical and does not represent future results.
Please see the following performance overview page for index description.
8


Driehaus Emerging Markets Small Cap Growth Fund
Performance Overview (unaudited)

The performance summarized below is historical and does not represent future results. Investment returns and principal value vary, and you may have a gain or loss when you sell shares. Performance data presented measures the change in the value of an investment in the Fund, assuming reinvestment of all dividends and capital gains. Average annual total return reflects annualized change.
The table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The graph compares the results of a $10,000 investment (minimum investment) in the Fund over the last 10 fiscal year periods (which includes performance of the Predecessor Limited Partnership's inception), with all dividends and capital gains reinvested, with the indicated indices (and dividends reinvested) for the same period.
Average Annual Total Returns as of 12/31/21 1 Year 3 Years 5 Years 10 Years
Driehaus Emerging Markets Small Cap Growth Fund (DRESX)1 15.93% 27.45% 15.97% 9.98%
MSCI Emerging Markets Small Cap Index-N2 18.75% 16.46% 11.47% 7.42%
MSCI Emerging Markets Small Cap Growth Index-N3 20.41% 19.20% 12.22% 7.46%

1 The returns reflect fee waivers and/or reimbursements without which performance would have been lower.
2 The Morgan Stanley Capital International Emerging Markets Small Cap Index-Net (MSCI Emerging Markets Small Cap Index-N) is a market capitalization-weighted index designed to measure equity market performance of small cap stocks in emerging markets. Data is in U.S. dollars and is calculated with net dividend reinvestment. Source: Morgan Stanley Capital International Inc.
3 The Morgan Stanley Capital International Emerging Markets Small Cap Growth Index-Net (MSCI Emerging Markets Small Cap Growth Index-N) is a market capitalization-weighted index designed to measure equity market performance of small cap growth stocks in emerging markets. Data is in U.S. dollars and is calculated with net dividend reinvestment. Source: Morgan Stanley Capital International Inc.
9


Driehaus Emerging Markets Small Cap Growth Fund
Schedule of Investments
December 31, 2021

  Shares,
Principal
Amount, or
Number of
Contracts
Value
COMMON STOCKS — 92.60%
FAR EAST — 79.14%
India — 28.58%
3M India Ltd. * 1,594 $543,819
Amber Enterprises India Ltd. * 25,657 1,144,589
Apollo Hospitals Enterprise Ltd. 11,963 806,818
Ashok Leyland Ltd. 427,161 703,644
AU Small Finance Bank Ltd. 1,* 68,911 960,861
Birlasoft Ltd. 246,660 1,807,419
Burger King India Ltd. * 258,841 492,885
Clean Science & Technology Ltd. * 40,915 1,372,362
Dixon Technologies India Ltd. 27,964 2,072,613
Dr Lal PathLabs Ltd. 1 11,502 591,419
Godrej Properties Ltd. * 52,729 1,327,736
ICICI Securities Ltd. 1 54,917 584,922
IndiaMart InterMesh Ltd. 1 6,072 529,015
Indian Energy Exchange Ltd. 1 239,206 813,490
Indraprastha Gas Ltd. 86,920 550,034
JK Cement Ltd. 19,041 870,612
Jubilant Foodworks Ltd. 12,934 624,832
Max Healthcare Institute Ltd. * 520,602 3,101,804
MTAR Technologies Ltd. 38,177 1,264,963
Oberoi Realty Ltd. * 44,365 514,339
Prince Pipes & Fittings Ltd. 85,129 801,753
Radico Khaitan Ltd. 155,682 2,588,883
Relaxo Footwears Ltd. 37,073 655,025
Sobha Ltd. 191,887 2,311,478
Sona Blw Precision Forgings Ltd. 1,* 165,136 1,651,790
SRF Ltd. 19,775 643,803
Syngene International Ltd. 1,* 77,911 649,716
TVS Motor Co. Ltd. 64,246 541,897
Varun Beverages Ltd. 112,418 1,343,378
Vijaya Diagnostic Centre Private Ltd. * 188,328 1,475,753
    33,341,652
China — 17.50%
Aluminum Corp. of China Ltd. - H * 1,370,000 757,251
Amoy Diagnostics Co. Ltd. - A 49,263 583,657
Asia - Potash International Investment Guangzhou Co. Ltd. - A * 151,000 631,403
Centre Testing International Group Co. Ltd. - A 189,500 798,931
Changzhou Xingyu Automotive Lighting Systems Co. Ltd. - A 32,781 1,050,550
China National Building Material Co. Ltd. - H 496,000 608,109
China Power International Development Ltd. 1,528,000 1,028,785
CIMC Enric Holdings Ltd. 748,000 1,087,819
Estun Automation Co. Ltd. - A 272,478 1,109,433
Gotion High-tech Co. Ltd. - A * 90,400 726,933
KWG Group Holdings Ltd. 1,055,000 690,024
  Shares,
Principal
Amount, or
Number of
Contracts
Value
Longshine Technology Group Co. Ltd. - A 235,225 $1,366,688
Maanshan Iron & Steel Co. Ltd. - H 2,936,000 1,076,872
Man Wah Holdings Ltd. 933,600 1,446,337
Ming Yang Smart Energy Group Ltd. - A 128,700 527,049
Pacific Basin Shipping Ltd. 3,389,000 1,243,024
Proya Cosmetics Co. Ltd. - A 43,700 1,428,314
Shenzhen Envicool Technology Co. Ltd. - A 111,000 712,151
Wuhan DR Laser Technology Corp. Ltd. - A 29,600 1,188,486
Xinyi Energy Holdings Ltd. 1,102,000 603,464
Yantai Jereh Oilfield Services Group Co. Ltd. - A 277,862 1,743,899
    20,409,179
Taiwan — 9.81%
Advanced Energy Solution Holding Co. Ltd. 17,000 1,120,957
ASPEED Technology, Inc. 9,000 1,160,495
Eclat Textile Co. Ltd. 51,000 1,162,097
Makalot Industrial Co. Ltd. 126,000 1,123,832
Parade Technologies Ltd. 26,455 2,012,699
Silergy Corp. 8,000 1,447,970
Sinbon Electronics Co. Ltd. 172,000 1,761,908
Voltronic Power Technology Corp. 29,550 1,648,535
    11,438,493
Vietnam — 7.26%
Asia Commercial Bank JSC * 495,675 802,889
Dat Xanh Real Estate Services JSC * 782,600 1,280,868
FPT Corp. 550,567 2,403,990
Masan Group Corp. 231,900 1,740,013
Military Commercial Joint Stock Bank * 918,157 1,199,244
SSI Securities Corp. 458,434 1,041,985
    8,468,989
South Korea — 7.22%
Chunbo Co. Ltd. 4,842 1,416,736
DB HiTek Co. Ltd. 23,521 1,433,658
Ecopro BM Co. Ltd. 850 357,124
F&F Co. Ltd. * 1,863 1,479,095
Iljin Materials Co. Ltd. 13,212 1,495,932
LEENO Industrial, Inc. 9,681 1,612,205
Mando Corp. * 11,741 624,748
    8,419,498
Indonesia — 3.02%
Adi Sarana Armada Tbk PT * 5,657,600 1,318,054
Bank Jago Tbk PT * 937,982 1,052,085
Merdeka Copper Gold Tbk PT * 4,226,600 1,156,976
    3,527,115
Kazakhstan — 2.33%
Kaspi.KZ JSC 1,2 14,830 1,761,507
 
Notes to Financial Statements are an integral part of this Schedule.
10


Driehaus Emerging Markets Small Cap Growth Fund
Schedule of Investments
December 31, 2021

  Shares,
Principal
Amount, or
Number of
Contracts
Value
NAC Kazatomprom JSC - GDR 2 26,005 $955,684
    2,717,191
Thailand — 1.44%
Chularat Hospital PCL - NVDR 7,618,000 834,662
Dohome PCL - NVDR 1,209,400 842,056
    1,676,718
Australia — 1.08%
Lynas Rare Earths Ltd. * 170,909 1,264,587
Philippines — 0.90%
Wilcon Depot, Inc. 1,756,300 1,050,491
Total FAR EAST
(Cost $71,679,339)
  92,313,913
SOUTH AMERICA — 6.28%
Brazil — 5.39%
Arezzo Industria e Comercio SA 63,200 868,833
Cia Brasileira de Aluminio * 246,000 602,395
Orizon Valorizacao de Residuos SA * 282,700 1,362,950
Petro Rio SA * 484,300 1,793,394
Vale SA 33,503 466,811
Vamos Locacao de Caminhoes Maquinas e Equipamentos SA 557,200 1,189,530
    6,283,913
Uruguay — 0.89%
Globant SA * 3,304 1,037,753
Total SOUTH AMERICA
(Cost $6,382,944)
  7,321,666
NORTH AMERICA — 5.38%
Canada — 2.95%
B2Gold Corp. 423,690 1,668,031
Ivanhoe Mines Ltd. - A * 217,994 1,778,488
    3,446,519
Mexico — 2.01%
GCC SAB de CV 126,400 970,741
Grupo Traxion SAB de CV 1,* 779,000 1,369,256
    2,339,997
United States — 0.42%
Fluence Energy, Inc. * 13,677 486,354
Total NORTH AMERICA
(Cost $6,284,295)
  6,272,870
EUROPE — 1.80%
United Kingdom — 1.00%
Ceres Power Holdings PLC * 86,682 1,169,178
Poland — 0.80%
Dino Polska SA 1,* 10,310 937,388
Total EUROPE
(Cost $1,477,241)
  2,106,566
Total COMMON STOCKS
(Cost $85,823,819)
  108,015,015
  Shares,
Principal
Amount, or
Number of
Contracts
  Value
PREFERRED STOCKS — 1.05%
SOUTH AMERICA — 1.05%
Brazil — 1.05%
Bradespar SA, 24.29% 3 273,100   $1,218,610
Total SOUTH AMERICA
(Cost $1,572,772)
    1,218,610
Total PREFERRED STOCKS
(Cost $1,572,772)
    1,218,610
SHORT TERM INVESTMENTS — 5.99%
Northern Institutional U.S. Government Select Portfolio (Shares Class), 0.01% 4
(Cost $6,991,404)
6,991,404   6,991,404
TOTAL INVESTMENTS
(Cost $94,387,995)
99.64%   $116,225,029
Other Assets In Excess of Liabilities 0.36%   419,352
Net Assets 100.00%   $116,644,381
    
GDR Global Depositary Receipt
JSC Joint Stock Company
NVDR Non-Voting Depositary Receipt
PCL Public Company Limited
PLC Public Limited Company
    
1 Security is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. The total value of these securities is $9,849,364, which represents 8% of Net Assets (see Note F in the Notes to Financial Statements).
2 Foreign security denominated and/or traded in U.S. dollars.
3 Current yield is disclosed. Dividends are calculated based on a percentage of the issuer’s net income.
4 7 day current yield as of December 31, 2021 is disclosed.
* Non-income producing security.
Percentages are stated as a percent of net assets.
 
Notes to Financial Statements are an integral part of this Schedule.
11


Driehaus Emerging Markets Small Cap Growth Fund
Schedule of Investments
December 31, 2021

Security Type   Percent of
Net Assets
Common Stocks   92.60%
Preferred Stocks   1.05%
Short Term Investments   5.99%
Total Investments   99.64%
Other Assets In Excess of Liabilities   0.36%
Net Assets   100.00%
    
Regional Weightings   Percent of
Net Assets
Far East   79.14%
North America   11.37%
South America   7.33%
Europe   1.80%
Notes to Financial Statements are an integral part of this Schedule.
12


Driehaus Emerging Markets Small Cap Growth Fund
Schedule of Investments
December 31, 2021

Industry   Percent of
Net Assets
Auto Components   2.86
Automobiles   0.46
Banks   3.44
Beverages   3.37
Biotechnology   0.50
Building Products   0.69
Capital Markets   2.09
Chemicals   2.94
Commercial Services & Supplies   1.17
Construction Materials   2.10
Consumer Finance   1.51
Electrical Equipment   5.17
Electronic Equipment, Instruments & Components   3.81
Energy Equipment & Services   1.50
Food & Staples Retailing   0.80
Food Products   2.03
Gas Utilities   0.47
Health Care Providers & Services   5.84
Hotels, Restaurants & Leisure   0.96
Household Durables   4.00
Independent Power and Renewable Electricity Producers   1.40
Industry   Percent of
Net Assets
Industrial Conglomerates   0.47
IT Services   2.95
Life Sciences Tools & Services   0.56
Machinery   4.17
Marine   1.07
Metals & Mining   8.56
Money Market Fund   5.99
Oil, Gas & Consumable Fuels   2.36
Personal Products   1.23
Professional Services   0.69
Real Estate Management & Development   5.25
Road & Rail   3.33
Semiconductors & Semiconductor Equipment   6.58
Software   2.72
Specialty Retail   1.62
Textiles, Apparel & Luxury Goods   4.53
Trading Companies & Distributors   0.45
Other Assets In Excess of Liabilities   0.36
TOTAL   100.00
 
Notes to Financial Statements are an integral part of this Schedule.
13


Driehaus Emerging Markets Opportunities Fund — Portfolio Managers’ Letter

Dear Fellow Shareholders,
The Driehaus Emerging Markets Opportunities Fund (“Fund”) returned -0.60% for the year ended December 31, 2021. The Fund outperformed both its primary Benchmark and secondary Benchmark for the year. The Morgan Stanley Capital International (“MSCI”) Emerging Markets Index (“Benchmark”), returned -2.54% for the year, while the equally weighted 50% MSCI Emerging Markets Index and 50% JP Morgan Global Bond Index Emerging Markets Global Diversified returned -5.49%.
Emerging markets (EM) were a disappointing asset class in 2021 and failed to deliver returns equivalent to their developed market peers. There were a number of reasons for this but in our view the main ones were the headwinds created by China’s ongoing slowdown and crackdown and the fact that developed market returns were the aberration. We write this letter with the benefit of having seen the first few weeks of January’s price movements but have been commenting for some time on the somewhat unbelievable valuation gap between U.S. equities and those in the rest of the world. This is a very interesting time in the market with recent market consensus being questioned and the positive case for EM investment beginning to be rewarded. We see opportunities in all areas of the EM landscape, notably in equity and long-duration local currency bonds, but increasingly in cheaper EM high-yield sovereign credit as well.
In 2021, equity security selection in the consumer discretionary and financials sectors contributed to the Fund’s return versus the Benchmark. From a country perspective, holdings in Taiwan and Kazakhstan made key contributions to performance.
Taiwan Semiconductor Manufacturing Co Ltd. (ticker: 2330-TW) was another significant contributor to the Fund’s performance. Taiwan Semiconductor Manufacturing Co. Ltd. rose throughout the fourth quarter of 2021 on continued appreciation of the positioning and outlook for the coming year. The semiconductor foundry industry has seen tight supply in 2021 which we believe could begin to normalize in 2022, especially at mature nodes. However, the company’s leading process technology should continue to see full utilization owing to the strength of its key customers. Additionally, the company has raised its prices which we view as another catalyst for the potential continued growth in the coming year.
For 2021, stock selection within the real estate and industrials sectors detracted from the Fund’s returns versus the Benchmark. At the country level, equity holdings in India detracted from Fund performance versus the Benchmark.
Tencent Holdings Ltd (Ticker: 700-HK) was the most significant detractor to the Fund’s performance for the year. The company underperformed as the Chinese government’s crackdown on the Internet industry continued. The near-term earnings revision profile for Tencent has become slightly less attractive to us, as new game approvals remain on hold while the company also experiences muted advertising demand at the same time
The non-equity allocations in the Fund generally consist of sovereign bonds and derivatives, including purchased and written options on currencies, interest rate swaps and foreign currency forward contracts. These positions are primarily utilized to gain exposure to certain market segments, hedge against interest rate fluctuations and manage currency risk in the Fund’s equity holdings.
In 2021, the non-equity positions, in aggregate, slightly detracted from the Fund’s return. From a country perspective, the top non-equity position contributors were in China and Peru. The top detractors were in Brazil and Turkey. The Fund ended 2021 with a relatively lower exposure to non-equities. The Fund has been cautious for some time on the EM fixed income opportunity set, being well below our neutral weight in bonds in the portfolio since the second quarter of 2020. After underperforming equities once again in 2021, we are starting to see value and more importantly, diversification benefits from the non-equity parts of the portfolio in spite of a clearly hawkish U.S. Federal Reserve. Emerging market central banks have been tightening for several quarters now and most are closer to inflation peaks than not; some, like Brazil have likely already seen inflation peak. We see yields to be broadly high, inflation likely peaking and the global economy slowing in the aggregate this year as developed market demand for consumer goods weakens.
We thank you for investing alongside us in the Driehaus Emerging Markets Opportunities Fund and express our gratitude for your continued confidence in our management capabilities.
14

Sincerely,
Richard Thies
Lead Portfolio Manager
Chad Cleaver
Portfolio Manager
Howard Schwab
Portfolio Manager
Jonathan Mershimer
Assistant Portfolio Manager

Performance is historical and does not represent future results.
Please see the following performance overview page for index description.
15


Driehaus Emerging Markets Opportunities Fund
Performance Overview (unaudited)

The performance summarized below is historical and does not represent future results. Investment returns and principal value vary, and you may have a gain or loss when you sell shares. Performance data presented measures the change in the value of an investment in the Fund, assuming reinvestment of all dividends and capital gains. Average annual total return reflects annualized change.
The table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The graph compares the results of a $10,000 investment (minimum investment) in the Fund since April 10, 2017 (the date of the fund's inception), with all dividends and capital gains reinvested, with the indicated indices (and dividends reinvested) for the same period.
Average Annual Total Returns as of 12/31/21 1 Year 3 Years Since Inception
(4/10/17 - 12/31/21)
Driehaus Emerging Markets Opportunities Fund (DMAGX)1 (0.60)% 16.32% 11.24%
MSCI Emerging Markets Index-N2 (2.54)% 10.94% 7.88%
MSCI EM/JP Morgan GBI Blended Index3 (5.49)% 6.65% 4.95%

1 Prior to January 29, 2020, the Driehaus Emerging Markets Opportunities Fund was known as the Driehaus Multi-Asset Growth Economies Fund. The returns for the period reflect fee waivers and/or reimbursements without which performance would have been lower.
2 The Morgan Stanley Capital International Emerging Markets Index-Net (MSCI Emerging Markets Index-N) is a market capitalization-weighted index designed to measure equity market performance in emerging markets. Data is in U.S. dollars and is calculated with net dividend reinvestment. Source: Morgan Stanley Capital International Inc.
3 The MSCI EM/JPMorgan Government Bond Index Blended Index is an equally weighted benchmark comprised of 50 percent by the Morgan Stanley Capital International Emerging Markets Index-Net (MSCI EM) and 50 percent by the JPMorgan Global Bond Index Emerging Markets Global Diversified (JPMorgan GBI). The MSCI EM is a market capitalization-weighted index designed to measure equity market performance in emerging markets and the JPMorgan GBI tracks debt instruments in the emerging markets. Source: Morgan Stanley Capital International Inc. and JPMorgan.
16


Driehaus Emerging Markets Opportunities Fund
Schedule of Investments
December 31, 2021

  Shares,
Principal
Amount, or
Number of
Contracts
Value
SOVEREIGN BONDS — 16.21%
Brazil — 0.75%
Brazil Notas do Tesouro Nacional Serie F
10.00%, 1/1/31 1
2,500,000 $430,843
China — 4.75%
China Government Bond
3.20%, 3/16/24 1
1,200,000 191,420
China Government Bond
3.54%, 8/16/28 1
2,500,000 410,750
China Government Bond
2.68%, 5/21/30 1
7,000,000 1,082,309
China Government Bond
3.27%, 11/19/30 1
6,500,000 1,055,047
    2,739,526
Dominican Republic — 0.53%
Dominican Republic International Bond
4.88%, 9/23/32 2
300,000 304,875
Egypt — 1.66%
Egypt Government Bond
17.00%, 4/3/22 1
6,500,000 420,540
Egypt Government International Bond
6.59%, 2/21/28 2
550,000 536,261
    956,801
Indonesia — 1.60%
Indonesia Treasury Bond
8.37%, 9/15/26 1
3,400,000,000 269,435
Indonesia Treasury Bond
7.00%, 9/15/30 1
9,000,000,000 655,464
    924,899
Mexico — 2.38%
Banco Mercantil del Norte SA
6.63%, (U.S. Treasury Yield Curve Rate CMT 10Y + 503 basis points), 12/31/49 2,3
350,000 348,425
Mexican Bonos
8.50%, 11/18/38 1
11,000,000 566,075
Mexico Government International Bond
4.50%, 4/22/29 2
260,000 289,583
Petroleos Mexicanos
6.70%, 2/16/32 2
169,000 170,690
    1,374,773
Nigeria — 0.51%
Nigeria Government International Bond
7.14%, 2/23/30 2
300,000 295,680
Peru — 1.39%
Peruvian Government International Bond
6.95%, 8/12/31 1
3,000,000 805,360
  Shares,
Principal
Amount, or
Number of
Contracts
Value
Qatar — 0.78%
Qatar Government International Bond
3.75%, 4/16/30 2
400,000 $449,391
Saudi Arabia — 0.71%
Saudi Government International Bond
2.75%, 2/3/32 2
400,000 412,508
South Africa — 0.45%
Republic of South Africa Government Bond
8.50%, 1/31/37 1
4,900,000 259,943
Ukraine — 0.70%
Ukraine Government International Bond
7.37%, 9/25/32 2
450,000 402,808
Total SOVEREIGN BONDS
(Cost $9,296,069)
  9,357,407
COMMON STOCKS — 78.65%
Argentina — 0.50%
MercadoLibre, Inc. 2,4,* 214 288,558
Australia — 0.93%
Lynas Rare Earths Ltd. * 72,418 535,834
Brazil — 0.91%
Vale SA - SP ADR 2,4 37,315 523,156
Canada — 1.91%
Ivanhoe Mines Ltd. - A * 74,200 605,355
Nutrien Ltd. 2,4 6,578 494,666
    1,100,021
China — 14.93%
Alibaba Group Holding Ltd. * 15,213 231,974
BYD Co. Ltd. - H 14,061 480,749
China Merchants Bank Co. Ltd. - H 83,259 646,528
China Resources Beer Holdings Co. Ltd. 75,810 620,768
Contemporary Amperex Technology Co. Ltd. - A 9,508 877,200
East Money Information Co. Ltd. - A 125,859 732,837
Ganfeng Lithium Co. Ltd. - H 5 24,600 387,099
JD Health International, Inc. 5,* 172 1,355
JD.com, Inc. - ADR 2,4,* 4,247 297,587
Li Ning Co. Ltd. 49,684 543,828
Meituan - B 5,* 8,052 232,755
Sungrow Power Supply Co. Ltd. - A 13,470 308,147
Techtronic Industries Co. Ltd. 13,000 258,748
 
Notes to Financial Statements are an integral part of this Schedule.
17


Driehaus Emerging Markets Opportunities Fund
Schedule of Investments
December 31, 2021

  Shares,
Principal
Amount, or
Number of
Contracts
Value
Tencent Holdings Ltd. 41,753 $2,445,995
Zhangzhou Pientzehuang Pharmaceutical Co. Ltd. - A 8,072 553,661
    8,619,231
Czech Republic — 1.14%
Komercni banka A/S 15,335 655,662
France — 1.14%
L'Oreal SA 1,389 659,355
India — 10.25%
Apollo Hospitals Enterprise Ltd. 7,102 478,978
Asian Paints Ltd. 8,053 366,485
Bharti Airtel Ltd. * 28,289 260,225
HDFC Bank Ltd. - ADR 2,4 11,908 774,854
Housing Development Finance Corp. Ltd. 10,109 351,735
ICICI Bank Ltd. - SP ADR 2,4 53,768 1,064,069
Power Grid Corp. of India Ltd. 167,822 461,458
Radico Khaitan Ltd. 22,864 380,212
Reliance Industries Ltd. 24,096 767,639
SBI Cards & Payment Services Ltd. * 23,295 290,860
Tech Mahindra Ltd. 30,041 723,609
    5,920,124
Indonesia — 2.32%
Bank Central Asia Tbk PT 1,745,245 893,828
Bank Jago Tbk PT * 398,378 446,840
    1,340,668
Japan — 1.00%
Tokyo Electron Ltd. 1,000 575,573
Kazakhstan — 2.04%
Kaspi.KZ JSC 2,5 6,419 762,449
NAC Kazatomprom JSC - GDR 2 11,303 415,385
    1,177,834
Mexico — 1.58%
Cemex SAB de CV - SP ADR 2,4,* 44,146 299,310
Grupo Financiero Banorte SAB de CV - O 94,271 613,126
    912,436
Netherlands — 1.22%
ASML Holding NV 876 704,810
Qatar — 0.64%
Qatar National Bank QPSC 66,562 369,022
Russia — 3.74%
LUKOIL PJSC - SP ADR 2 10,906 976,087
Sberbank of Russia PJSC - SP ADR 2 28,523 457,794
Yandex NV - A 2,4,* 11,965 723,883
    2,157,764
  Shares,
Principal
Amount, or
Number of
Contracts
Value
Saudi Arabia — 1.73%
Saudi Arabian Oil Co. 5 105,089 $1,001,626
Singapore — 0.92%
Sea Ltd. - ADR 2,4,* 2,362 528,403
South Africa — 0.78%
MTN Group Ltd. * 42,189 451,966
South Korea — 10.02%
Hankook Tire & Technology Co. Ltd. 12,863 429,718
Kakao Corp. 4,554 430,045
KB Financial Group, Inc. 5,191 240,054
Kia Corp. 6,212 428,709
LEENO Industrial, Inc. 4,257 708,930
Macquarie Korea Infrastructure Fund 44,563 526,928
Samsung Electronics Co. Ltd. 40,096 2,633,304
SK Innovation Co. Ltd. * 1,926 385,645
    5,783,333
Taiwan — 12.65%
Chailease Holding Co. Ltd. 67,000 637,292
Delta Electronics, Inc. 35,986 357,060
Hon Hai Precision Industry Co. Ltd. 121,103 454,153
MediaTek, Inc. 18,585 797,474
Sinbon Electronics Co. Ltd. 40,136 411,139
Taiwan Semiconductor Manufacturing Co. Ltd. 177,668 3,930,194
Unimicron Technology Corp. 50,311 418,687
Win Semiconductors Corp. 22,000 296,853
    7,302,852
United States — 7.07%
Fluence Energy, Inc. 4,* 389 13,833
Freeport-McMoRan, Inc. 4 9,712 405,282
Freshworks, Inc. - A 4,* 8,397 220,505
Liberty Media Corp.-Liberty Formula One - C 4,* 11,467 725,173
MELI Kaszek Pioneer Corp. - A 4,* 18,498 213,837
NVIDIA Corp. 4 3,224 948,211
ROBLOX Corp. - A 4,* 6,782 699,631
Samsonite International SA 5,* 247,254 502,273
Unity Software, Inc. 4,* 2,480 354,615
    4,083,360
Uruguay — 1.23%
Globant SA 2,4,* 2,256 708,587
Total COMMON STOCKS
(Cost $33,208,655)
  45,400,175
 
Notes to Financial Statements are an integral part of this Schedule.
18


Driehaus Emerging Markets Opportunities Fund
Schedule of Investments
December 31, 2021

  Shares,
Principal
Amount, or
Number of
Contracts
  Value
SHORT TERM INVESTMENTS — 4.57%
Northern Institutional U.S. Government Select Portfolio (Shares Class), 0.01% 6
(Cost $2,640,635)
2,640,635   $2,640,635
TOTAL INVESTMENTS
(Cost $45,145,359)
99.43%   $57,398,217
Other Assets in Excess of Liabilities 0.57%   329,349
Net Assets 100.00%   $57,727,566
    
ADR American Depositary Receipt
CMT Constant Maturity
GDR Global Depositary Receipt
JSC Joint Stock Company
PJSC Public Joint Stock Company
SP ADR Sponsored American Depositary Receipt
    
1 Foreign security, principal amount shown in local currency.
2 Foreign security denominated and/or traded in U.S. dollars.
3 Variable rate security. Rates disclosed as of December 31, 2021.
4 All or a portion of this security is pledged as collateral for short sales or derivatives transaction.
5 Security is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. The total value of these securities is $2,887,557, which represents 5% of Net Assets (see Note F in the Notes to Financial Statements).
6 7 day current yield as of December 31, 2021 is disclosed.
* Non-income producing security.
Percentages are stated as a percent of net assets.
Security Type   Percent of
Net Assets
Sovereign Bonds   16.21%
Common Stocks   78.65%
Short Term Investments   4.57%
Total Investments   99.43%
Other Assets In Excess of Liabilities   0.57%
Net Assets   100.00%
    
Regional Weightings   Percent of
Net Assets
Far East   61.41%
North America   18.04%
Europe   7.94%
South America   4.78%
Middle East   3.86%
Africa   3.40%
 
Notes to Financial Statements are an integral part of this Schedule.
19


Driehaus Emerging Markets Opportunities Fund
Schedule of Investments
December 31, 2021

Industry   Percent of
Net Assets
Auto Components   0.74
Automobiles   1.57
Banks   10.67
Beverages   1.74
Capital Markets   2.18
Chemicals   1.50
Construction Materials   0.52
Consumer Finance   1.82
Diversified Financial Services   1.10
Electric Utilities   0.80
Electrical Equipment   2.07
Electronic Equipment, Instruments & Components   2.85
Entertainment   3.39
Health Care Providers & Services   0.83
Holding Companies - Diversified   0.37
Interactive Media & Services   6.25
Internet & Direct Marketing Retail   1.82
Industry   Percent of
Net Assets
IT Services   2.48
Machinery   0.45
Metals & Mining   4.26
Money Market Fund   4.57
Oil, Gas & Consumable Fuels   6.14
Personal Products   1.14
Pharmaceuticals   0.96
Semiconductors & Semiconductor Equipment   13.79
Software   1.00
Sovereign Bonds   16.21
Technology Hardware, Storage & Peripherals   4.56
Textiles, Apparel & Luxury Goods   1.81
Thrifts & Mortgage Finance   0.61
Wireless Telecommunication Services   1.23
Other Assets In Excess of Liabilities   0.57
TOTAL   100.00
 
Notes to Financial Statements are an integral part of this Schedule.
20


Driehaus International Small Cap Growth Fund — Portfolio Managers’ Letter

Dear Fellow Shareholders,
The Driehaus International Small Cap Growth Fund (“Fund”) returned 12.49% for the year ended December 31, 2021. The Fund’s benchmark, the Morgan Stanley Capital International (“MSCI”) All Country World ex USA Small Cap Growth Index (“Benchmark”), returned 11.53%.
Global markets followed one of their best years on record in 2020 with yet another year of impressive absolute gains. The U.S. was a standout performer on an absolute basis, but many European markets also fared well, and we believe their performance is likely just beginning, particularly on a relative basis. Increasing inflation, supply chain inefficiency, and a major potential shift in global central bank policy seem to dominate the headlines these days. While there is certainly ongoing cause for concern with these issues, we are cautiously optimistic that these pressures are beginning to peak with trends hopefully improving as we progress throughout the year. We enter 2022 with a great deal of optimism and hopefully, finally, some light at the end of a long pandemic tunnel.
From a sector perspective, the key contributors to performance versus the Benchmark in 2021 were the Fund’s holdings in the consumer discretionary and health care sectors. From a geographical perspective, holdings in Germany and France contributed positively to the performance of the Fund compared to the Benchmark.
Zooplus AG (Ticker: ZO1-DE) was the top contributor to Fund performance for the year. Zooplus has been a market leader for several years. Despite strong leadership positioning in the European online pet food and supplies niche, the company historically had low margins and struggled to generate substantial earnings or free cash flow*. 2020 was a major inflection point as many sell-side analysts anchored to the company’s previous lackluster margins. The company’s strong working capital management, low capital expenditure needs, and self-funding nature of their business model, however, supported strong top line growth during the period we held the position. On August 13, 2021, private equity firm Hellman & Friedman (H&F) made a voluntary takeover offer at Eur 390/share, which represented a 40% premium to the previous closing price. In the weeks that followed, shares traded above H&F’s offer as management participated in discussions with other private equity firms, with media reporting that another private equity firm might make a higher bid. On September 13, 2021, without a competing bid yet announced, H&F raised their offer price to Eur 460/share. Two weeks later, EQT, another private equity investor, formally submitted an offer to buy Zooplus for Eur 470/share. After this flurry of activity, H&F and EQT announced plans to join forces in a 50/50 buyout of Zooplus for Eur 480/share. We accepted this tender offer as we believe this was the best outcome for shareholders.
Endava Plc Sponsored ADR Class A (Ticker: DAVA-US) also contributed to the Fund’s performance for the year. Endava is a UK based next generation IT Services provider with a differentiated “nearshore” delivery model allowing the company to leverage low-cost IT talent against a growing enterprise IT market that has been experiencing a shortage of talent and price increases. The Fund has been invested in this dynamic grower since 2019. The stock increased 27% in the fourth quarter of 2021 driven by strong October financial results. These quarterly reported revenues and earnings both exceeded consensus numbers by a wide margin and Endava raised its Fiscal 2022 annual revenue and earnings guidance both above its own prior forecast and consensus numbers. The company has executed in accordance with our thesis, and we continue to evaluate the stock’s weight in the Fund against its performance and valuation in light of consistently improving growth forecasts.
For 2021, while security selection in the industrials and information technology sectors both contributed positively to Fund’s absolute performance, these positions detracted from the Fund’s performance versus the Benchmark. At the country level, positions in India and Taiwan detracted from the Fund’s performance versus the Benchmark.
The most significant detractor from returns for the year was Xebec Adsorption Inc. (Ticker: XBC-CA). Xebec is a Canadian company that produces products that enable the separation of landfill gasses from waste into a stream of Renewable Natural Gas (“RNG”). Gas utilities are being mandated to increase their renewable offerings to consumers and premium pricing can be charged for such RNG. The penetration of RNG is very low at less than 1%, but targets are as high as 20% in some North American regions. Furthermore, the company is leveraging its technology into the Hydrogen space by recently acquiring technology to convert RNG into Hydrogen, which can be used in fuel cells. Over the course of 2020, we were encouraged by the company’s strong revenue growth and continued strategic execution with its acquisitions in the Hydrogen and RNG Services spaces. The company, however, did experience some margin weakness in the third quarter of 2021, but upon hearing management’s explanation, we believe that it was due to higher expenses related to non-recurring COVID-19 delays. The company negatively preannounced fourth quarter 2020 numbers in March 2021 after running into cost overruns late in the year. We believed that the company had effectively “productized” its offering; but in fact, the company was performing greater levels of customization, incurring higher than expected costs resulting in improper revenue recognition and an ensuing management shakeup. Our process tolerates minor misses and delays that are routine among growing small cap companies. However, the magnitude and poor disclosure of these issues led us to question management’s lack of oversight and credibility. We did not have the confidence to own the stock through a prolonged period of major readjustment. We thus sold our position in the first quarter of 2021.
21

Hennge K.K. (Ticker: 4475-JP) also detracted from the Fund’s performance for the year. Hennge is the market leader in single-sign-on solutions in Japan with roughly two million subscribers. This product allows workers to log into one app to access the company's cloud network versus trying to remember dozens of log-in passwords (it also allows IT departments to control access to certain apps). As companies in Japan transition to cloud infrastructure, we foresee the demand for single-sign-on increasing. Japan SaaS penetration is relatively low at <10% which we believe supports 20% growth for Hennge. We bought the stock in December 2020 after an inflection in average revenue per user (ARPU) and user count resulted in >20% growth. We felt this was the start of an accelerating growth profile that was relatively unknown by the market. For example, U.S. peers charge 4x the price. We view this pricing dynamic as something that may provide further upside to the company as ARPU increases in Japan. Unfortunately, our thesis began to unravel from a stock perspective when the company reported Fiscal 2020 results in early 2021. While we thought the results were generally in line with expectations, the guidance for continued 20% growth was not enough to support the company’s current valuation multiple. With in-line results, the stock de-rated from 20x revenue to 12x revenue in a month's time. Though estimates are largely unchanged, the de-rating for Hennge and the uncertain backdrop for SaaS valuations drove us to move out of the name.
We are particularly optimistic on the opportunities we are seeing broadly across the Eurozone and the UK. Brexit is finally behind us. Inflationary pressures and supply chain issues are somewhat less pronounced in Europe than they are in the U.S., and the European Central Bank (ECB) continues to maintain a more expansionary and accommodative monetary policy stance, particularly relative to their U.S. counterpart. Due to a higher fixed cost base and stronger operating leverage, European earnings in the aggregate actually grew faster than the U.S. in 2021 and are projected to grow at nearly the same rate as the U.S. in 2022. Finally, we see relative valuation multiples broadly across European equities at discounts not seen in decades relative to their U.S. competitors. Further, from an allocation perspective, global investors in the aggregate seem to be underweight the region. As a result, we are finding opportunities across nearly all sectors including consumer, financials, healthcare, technology, energy, materials, industrials and services.
As we kick off the new year hopeful and optimistic that we are finally approaching the end of the nearly two-year-old pandemic and its seemingly endless disruption to our daily lives, we are mindful of several key issues that will present both challenges and opportunities as we attempt to navigate the coming year. These considerations include ongoing inflationary pressures and related cues on monetary policy at the World’s major central banks, supply chain normalization, and the implications of a potential monetary tightening cycle by the U.S. Federal Reserve and its impact on global growth. We believe as we progress throughout the year, economies globally are entering a more sustainable and less volatile growth phase which should continue to be supportive for risk assets in general, particularly ex-U.S. given our view of their more favorable valuations and accommodative monetary policy. It is our expectation that this backdrop may be beneficial to the Fund in 2022.
Sincerely,
Daniel Burr
Portfolio Manager
David Mouser
Portfolio Manager
Ryan Carpenter
Assistant Portfolio Manager

*    Free cash flow (FCF) represents the cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.
Performance is historical and does not represent future results.
Please see the following performance overview page for index description.
22


Driehaus International Small Cap Growth Fund
Performance Overview (unaudited)

The performance summarized below is historical and does not represent future results. Investment returns and principal value vary, and you may have a gain or loss when you sell shares. Performance data presented measures the change in the value of an investment in the Fund, assuming reinvestment of all dividends and capital gains. Average annual total return reflects annualized change.
The table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The graph compares the results of a $10,000 investment (minimum investment) in the Fund over the last 10 fiscal year periods, with all dividends and capital gains reinvested, with the indicated index (and dividends reinvested) for the same period.
Average Annual Total Returns as of 12/31/21 1 Year 3 Years 5 Years 10 Years
Driehaus International Small Cap Growth Fund (DRIOX) 12.49% 23.92% 17.46% 12.54%
MSCI AC World ex USA Small Cap Growth Index-N1 11.53% 19.79% 13.43% 10.29%

1 The Morgan Stanley Capital International All Country World ex USA Small Cap Growth Index-Net (MSCI AC World ex USA Small Cap Growth Index-N) is a market capitalization-weighted index designed to measure equity market performance in global developed markets and emerging markets, excluding the U.S., and is composed of stocks which are categorized as small capitalization growth stocks. Data is in U.S. dollars and is calculated with net dividend reinvestment. Source: Morgan Stanley Capital International Inc.
23


Driehaus International Small Cap Growth Fund
Schedule of Investments
December 31, 2021

  Shares,
Principal
Amount, or
Number of
Contracts
Value
COMMON STOCKS — 98.21%
EUROPE — 70.05%
United Kingdom — 23.92%
888 Holdings PLC 588,501 $2,397,663
Abcam PLC * 210,734 4,943,193
Auto Trader Group PLC 1 346,408 3,469,716
Bellway PLC 73,918 3,337,725
Conduit Holdings Ltd. 386,582 2,263,091
ConvaTec Group PLC 1 1,268,877 3,317,329
Cranswick PLC 45,033 2,256,533
Electrocomponents PLC 312,754 5,105,338
Endava PLC - SP ADR 2,* 28,588 4,800,497
Ergomed PLC * 86,900 1,764,353
Fevertree Drinks PLC 88,259 3,231,474
Halfords Group PLC 973,713 4,552,266
IMI PLC 104,748 2,461,330
Marks & Spencer Group PLC * 2,189,215 6,856,873
OSB Group PLC 726,752 5,454,590
Oxford Nanopore Technologies PLC * 219,430 2,073,126
Pets at Home Group PLC 272,802 1,717,018
Serco Group PLC 1,457,325 2,655,069
Synthomer PLC 739,997 4,002,486
The Restaurant Group PLC * 2,372,786 3,028,619
Vesuvius PLC 404,938 2,467,564
Watches of Switzerland Group PLC 1,* 220,751 4,242,925
WH Smith PLC * 88,054 1,763,945
Yellow Cake PLC 1,* 284,724 1,310,320
    79,473,043
Germany — 11.04%
Befesa SA 1 47,959 3,680,004
GFT Technologies SE 75,965 3,979,392
Hornbach Holding AG & Co. KGaA 44,592 6,696,789
HUGO BOSS AG 72,241 4,373,039
Ibu-Tec Advanced Materials AG * 27,154 1,390,497
PVA TePla AG * 100,833 4,790,375
Sixt SE * 14,206 2,506,115
SUESS MicroTec SE * 138,179 3,292,384
TAG Immobilien AG 71,732 2,003,638
VERBIO Vereinigte BioEnergie AG 58,376 3,973,573
    36,685,806
France — 6.41%
Coface SA * 427,050 6,092,041
IPSOS 106,837 5,017,400
Lectra 19,563 935,444
Maisons du Monde SA 1 74,281 1,721,823
Virbac SA 12,842 6,206,452
Waga Energy SA * 40,847 1,316,072
    21,289,232
Switzerland — 6.29%
Belimo Holding AG 5,455 3,463,850
  Shares,
Principal
Amount, or
Number of
Contracts
Value
Flughafen Zurich AG * 16,708 $3,000,488
Montana Aerospace AG 1,* 78,302 2,904,978
PolyPeptide Group AG 1,* 18,225 2,729,302
Siegfried Holding AG * 1,823 1,773,354
Tecan Group AG 8,521 5,175,367
Ypsomed Holding AG 9,157 1,869,123
    20,916,462
Denmark — 5.17%
ISS A/S * 189,373 3,590,660
Matas A/S 218,214 4,159,130
Netcompany Group A/S 1 38,690 4,148,358
Ossur HF * 450,158 2,915,116
Royal Unibrew A/S 21,149 2,378,900
    17,192,164
Netherlands — 3.02%
Accell Group NV * 63,905 3,492,280
Corbion NV 49,039 2,313,633
OCI NV * 161,830 4,241,284
    10,047,197
Sweden — 2.79%
Elekta AB - B 271,379 3,431,187
Hexatronic Group AB 72,912 4,040,296
Kindred Group PLC 153,049 1,813,266
    9,284,749
Italy — 2.23%
FinecoBank Banca Fineco SpA 96,244 1,685,477
Intercos SpA * 160,273 2,565,540
Seco SpA * 311,405 3,172,620
    7,423,637
Austria — 2.02%
BAWAG Group AG 1 109,649 6,724,919
Ireland — 1.86%
Glanbia PLC 260,591 3,699,635
James Hardie Industries PLC 61,577 2,477,459
    6,177,094
Finland — 1.79%
Metso Outotec OYJ 432,477 4,592,972
Tokmanni Group Corp. 60,219 1,348,093
    5,941,065
Belgium — 1.66%
Bekaert SA 36,749 1,637,568
Lotus Bakeries NV 609 3,875,807
    5,513,375
Spain — 1.45%
Indra Sistemas SA * 444,417 4,800,631
Norway — 0.40%
SmartCraft ASA * 569,124 1,325,794
Total EUROPE
(Cost $190,891,906)
  232,795,168
FAR EAST — 13.58%
Japan — 10.80%
Asics Corp. 202,600 4,491,540
 
Notes to Financial Statements are an integral part of this Schedule.
24


Driehaus International Small Cap Growth Fund
Schedule of Investments
December 31, 2021

  Shares,
Principal
Amount, or
Number of
Contracts
Value
Azbil Corp. 92,800 $4,232,476
Capcom Co. Ltd. 48,000 1,130,465
en Japan, Inc. 43,100 1,218,026
Fujitec Co. Ltd. 78,850 1,728,175
Koito Manufacturing Co. Ltd. 55,600 2,944,801
MINEBEA MITSUMI, Inc. 85,454 2,428,059
Nichias Corp. 71,230 1,718,998
Pola Orbis Holdings, Inc. 75,500 1,258,268
Riken Keiki Co. Ltd. 40,600 2,073,537
Shibaura Machine Co. Ltd. 121,200 3,966,207
Takeuchi Manufacturing Co. Ltd. 151,000 3,582,196
Tokai Carbon Co. Ltd. 181,400 1,906,782
Yokogawa Electric Corp. 177,500 3,203,773
    35,883,303
Taiwan — 1.23%
Giant Manufacturing Co. Ltd. 328,589 4,089,615
Australia — 1.02%
NEXTDC Ltd. * 364,002 3,387,171
South Korea — 0.53%
ST Pharm Co. Ltd. * 15,165 1,773,393
Total FAR EAST
(Cost $40,039,849)
  45,133,482
NORTH AMERICA — 12.62%
Canada — 12.18%
Altus Group Ltd. 91,455 5,131,081
Boardwalk REIT 74,774 3,241,123
Cameco Corp. 69,000 1,504,423
Converge Technology Solutions Corp. * 551,888 4,742,498
Docebo, Inc. * 51,066 3,426,200
Intertape Polymer Group, Inc. 120,525 2,507,781
K92 Mining, Inc. * 396,854 2,255,726
Kinaxis, Inc. * 42,811 6,001,561
Parkland Corp. 76,023 2,089,663
Pason Systems, Inc. 200,100 1,825,490
TELUS International CDA, Inc. 2,* 144,410 4,774,195
Tidewater Renewables Ltd. * 84,414 982,311
Xenon Pharmaceuticals, Inc. 2,* 63,629 1,987,770
    40,469,822
Mexico — 0.44%
GCC SAB de CV 190,986 1,466,755
Total NORTH AMERICA
(Cost $39,138,284)
  41,936,577
SOUTH AMERICA — 1.96%
Brazil — 1.96%
Cyrela Brazil Realty SA Empreendimentos e Participacoes 499,400 1,408,654
Embraer SA * 724,800 3,237,270
  Shares,
Principal
Amount, or
Number of
Contracts
  Value
Iochpe Maxion SA 680,925   $1,869,071
      6,514,995
Total SOUTH AMERICA
(Cost $6,880,535)
    6,514,995
Total COMMON STOCKS
(Cost $276,950,574)
    326,380,222
SHORT TERM INVESTMENTS — 1.63%
Northern Institutional U.S. Government Select Portfolio (Shares Class), 0.01% 3
(Cost $5,404,309)
5,404,309   5,404,309
TOTAL INVESTMENTS
(Cost $282,354,883)
99.84%   $331,784,531
Other Assets In Excess of Liabilities 0.16%   527,608
Net Assets 100.00%   $332,312,139
    
PLC Public Limited Company
REIT Real Estate Investment Trust
SP ADR Sponsored American Depositary Receipt
    
1 Security is exempt from registration under Rule 144A of the Securities Act of 1933, as amended. The total value of these securities is $34,249,674, which represents 10% of Net Assets (see Note F in the Notes to Financial Statements).
2 Foreign security denominated and/or traded in U.S. dollars.
3 7 day current yield as of December 31, 2021 is disclosed.
* Non-income producing security.
Percentages are stated as a percent of net assets.
Security Type   Percent of
Net Assets
Common Stocks   98.21%
Short Term Investments   1.63%
Total Investments   99.84%
Other Assets In Excess of Liabilities   0.16%
Net Assets   100.00%
    
Regional Weightings   Percent of
Net Assets
Europe   70.05%
North America   14.25%
Far East   13.58%
South America   1.96%
 
Notes to Financial Statements are an integral part of this Schedule.
25


Driehaus International Small Cap Growth Fund
Schedule of Investments
December 31, 2021

Industry   Percent of
Net Assets
Aerospace & Defense   1.86
Auto Components   0.89
Banks   2.53
Beverages   1.68
Biotechnology   2.09
Building Products   1.56
Chemicals   4.17
Commercial Services & Supplies   2.99
Construction Materials   1.19
Containers & Packaging   0.75
Electrical Equipment   1.22
Electronic Equipment, Instruments & Components   2.86
Energy Equipment & Services   0.55
Entertainment   0.34
Food Products   2.96
Health Care Equipment & Supplies   3.47
Hotels, Restaurants & Leisure   2.17
Household Durables   1.43
Insurance   2.51
Interactive Media & Services   1.04
IT Services   7.99
Leisure Products   2.28
Life Sciences Tools & Services   4.59
Industry   Percent of
Net Assets
Machinery   6.94
Media   1.51
Metals & Mining   1.17
Money Market Fund   1.63
Multiline Retail   2.47
Oil, Gas & Consumable Fuels   2.58
Personal Products   1.15
Pharmaceuticals   1.87
Professional Services   0.37
Real Estate Investment Trusts (REITs)   3.11
Road & Rail   0.75
Semiconductors & Semiconductor Equipment   2.43
Software   4.77
Specialty Retail   7.48
Technology Hardware, Storage & Peripherals   0.95
Textiles, Apparel & Luxury Goods   2.67
Thrifts & Mortgage Finance   1.64
Trading Companies & Distributors   1.93
Transportation Infrastructure   1.30
Other Assets In Excess of Liabilities   0.16
TOTAL   100.00
 
Notes to Financial Statements are an integral part of this Schedule.
26


Driehaus Micro Cap Growth Fund — Portfolio Managers’ Letter

Dear Fellow Shareholders,
The Driehaus Micro Cap Growth Fund (the “Fund”) returned 24.73% for the year ended December 31, 2021. This return outperformed the Fund’s benchmark, the Russell Microcap® Growth Index (the “Benchmark”), which returned 0.88% for the same period.
2021 in many ways was nearly the opposite of 2020 in terms of what drove U.S. market performance. Cyclical, large cap, and value-oriented positions dominated, whereas secular industries, small caps and growth-oriented stocks dominated 2020. The year 2021 was characterized by strong economic growth and robust corporate earnings as the economy is now in year two of a new cycle post the COVID-19 recession that took hold in early 2020. The rate of economic growth has declined from peak levels in the second quarter of 2021 as year-over-year comparisons got tougher, fiscal stimulus eased, supply and labor shortages accelerated, and Delta and the Omicron variant waves cycled through the global population.
In late November 2021, U.S. Federal Reserve Chair Jerome Powell signaled a more hawkish pivot in tone and accelerated the pace of tapering the Fed’s Quantitative Easing (QE) program. This is expected to lead to several rate hikes in 2022. The pivot by the Fed in response to persistent inflation and already low unemployment rates has sparked another “Taper Tantrum” in the equity markets. Over the past year, inflation has been higher than many expected. Fiscal and monetary policy, pent-up demand, rising rents and home prices, and severe labor shortages and supply chain disruptions have all contributed to the rise in inflation. We foresee some of these factors to be more temporary, such as fiscal policy stimulus, and other factors to ease more gradually, such as the supply chain stress, and inventory and staffing shortages. It is, however, our belief that rising wages and rents will be stickier and continue to put upward pressure on inflation risks. Considering all these factors together, we agree with several key market strategists that inflation will gradually ease later in 2022, and the years ahead will see diminished inflation, ending with levels modestly above the pre-pandemic average.
Looking ahead to 2022, we expect above trend economic growth, which should drive continued earnings growth, especially for the smaller cap equities in which we invest. On the inflation front, we expect that inflation will begin to ease in a generally higher interest rate environment.
For the year 2021, key contributors to performance versus the Benchmark were the Fund’s selection of holdings in the information technology, healthcare and consumer discretionary sectors.
Calix, Inc (ticker: CALX) was the top contributor to the Fund’s performance for the year. Calix offers broadband communications access systems for fiber and copper-based network architectures that enable communications service providers to transform their networks. The company saw strong revenue and earnings growth trends, with consensus estimates for 2021 revenue and earnings being revised higher over the course of the year by more than 20% and 70%, respectively. Calix attributed this strength to broad based demand from service providers adding more capacity and choosing Calix’s software centric platform to better manage their networks and improve efficiencies.
Grid Dynamics Holdings, Inc. (Ticker: GDYN) also contributed to the Fund’s performance for the year. Grid Dynamics provides digital engineering and information technology services. The company saw strong revenue and earnings growth trends, with consensus estimates for 2021 revenue and earnings being revised higher over the course of the year by more than 50% and 100%, respectively. Strength in the business was driven by robust demand for digital transformation services as large enterprises sought to adapt their business to the post-pandemic world.
During the 2021 year, the communication services and utilities sectors detracted from Fund performance.
The holding that detracted the most from the Fund’s return during in 2021 was Ardelyx, Inc. (Ticker: ARDX). Ardelyx is a clinical stage therapeutics company developing novel treatments for kidney disease. In July, the company received notice that the FDA would not be approving their therapy for the control of serum phosphorus in patients with chronic kidney disease on dialysis due to insufficient evidence and suggested that an additional clinical trial would be required before seeking approval. As a result, the stock depreciated significantly as the treatment’s probability of future approval fell and the time and capital required to get to that point increased.
Immuovant Inc (Ticker: IMVT) also detracted from the Fund’s returns. Immunovant is a clinical stage therapeutics company developing drugs to treat autoimmune conditions. In February, the company voluntarily paused a clinical trial due to an unexpected side effect that appears to be related to the drug. As a result, though it has yet to be confirmed, the current expectation is that Immunovant’s drug product profile will be relatively less competitive, and therefore its peak sales will likely be lower than previous projections.
27

Our outlook for the economy and earnings remains positive as there are multiple drivers supporting the current expansion. However, near-term, the difficult market action has been dominated by concerns about the pace of Fed tapering, likely interest rate hikes in 2022, elevated inflation and the rise in Omicron cases. Overall, we continue to see many dynamic investment opportunities in attractive and strong industries, which fit our investment philosophy of companies exhibiting growth inflections, differentiation, market share gains, strong revenues and expanding profitability.
Corporate earnings appear robust and have made new highs, even though equities have pulled back from their highs earlier this year. We continue to view smaller cap valuations to be attractive on a relative basis versus large caps when comparing market data over the past four decades. Earnings growth rates for smaller companies are typically much stronger than those of large cap companies. We believe that the combination of higher earnings and lower stock prices have created more attractive valuations and have set up an attractive dynamic as the market looks ahead and into 2022. As the market digests the current macro uncertainties, we continue to uncover many appealing opportunities both among cyclicals as well as secular growth companies.
Thank you for investing alongside us in the Driehaus Micro Cap Growth Fund. We appreciate your continued confidence in our management capabilities.
Sincerely,
   
Jeff James
Lead Portfolio Manager
Michael Buck
Portfolio Manager
 
    
Prakash Vijayan
Assistant Portfolio Manager
   

Performance is historical and does not represent future results.
Please see the following performance overview page for index description.
28


Driehaus Micro Cap Growth Fund
Performance Overview (unaudited)

The performance summarized below is historical and does not represent future results. Investment returns and principal value vary, and you may have a gain or loss when you sell shares. Performance data presented measures the change in the value of an investment in the Fund, assuming reinvestment of all dividends and capital gains. Average annual total return reflects annualized change.
The table does not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption of Fund shares. The graph compares the results of a $10,000 investment (minimum investment) in the Fund over the last 10 fiscal year periods (which includes performance of the Predecessor Limited Partnership), with all dividends and capital gains reinvested, with the indicated index (and dividends reinvested) for the same period.
  Fund Only   Including Predecessor
Limited Partnership
Average Annual Total Returns as of 12/31/21 1 Year 3 Years 5 Years Since Inception
(11/18/13 - 12/31/21)
  10 Years
Driehaus Micro Cap Growth Fund (DMCRX)1 24.73% 45.80% 31.97% 23.22%   25.66%
Russell Microcap® Growth Index2 0.88% 20.36% 11.78% 8.93%   12.65%

1 The Driehaus Micro Cap Growth Fund (the “Fund”) performance shown above includes the performance of the Driehaus Micro Cap Fund, L.P. (the “Predecessor Limited Partnership”), one of the Fund’s predecessors, for the periods before the Fund’s registration statement became effective. The Predecessor Limited Partnership, which was established on July 1, 1996, was managed with substantially the same investment objective, policies and philosophies as are followed by the Fund. The Fund succeeded to the Predecessor Limited Partnership’s assets together with the assets of the Driehaus Institutional Micro Cap Fund, L.P. on November 18, 2013. The Predecessor Limited Partnership was not registered under the Investment Company Act of 1940, as amended (“1940 Act”), and thus was not subject to certain investment and operational restrictions that are imposed by the 1940 Act. If the Predecessor Limited Partnership had been registered under the 1940 Act, its performance may have been adversely affected. The Predecessor Limited Partnership’s performance has been restated to reflect estimated expenses of the Fund. The returns for periods prior to November 18, 2016, reflect fee waivers and/or reimbursements without which performance would have been lower.
2 The Russell Microcap® Growth Index measures the performance of the microcap growth segment of the U.S. equity market. It includes those Russell Microcap companies that are considered more growth oriented relative to the overall market as defined by FTSE Russell's leading style methodology. The Russell Microcap® Growth Index is constructed to provide a comprehensive and unbiased barometer for the microcap growth segment of the market. Data is calculated with net dividend reinvestment. Source: FTSE Russell.
29


Driehaus Micro Cap Growth Fund
Schedule of Investments
December 31, 2021

  Shares,
Principal
Amount, or
Number of
Contracts
Value
COMMON STOCKS — 100.03%
HEALTH CARE — 28.03%
Biotechnology — 16.76%
Apellis Pharmaceuticals, Inc. * 34,548 $1,633,429
Applied Therapeutics, Inc. * 60,081 537,725
Avid Bioservices, Inc. * 148,889 4,344,581
Bicycle Therapeutics PLC - ADR 1,* 30,729 1,870,474
Biomea Fusion, Inc. * 54,546 406,368
C4 Therapeutics, Inc. * 47,401 1,526,312
Celldex Therapeutics, Inc. * 67,745 2,617,667
Centessa Pharmaceuticals PLC - ADR 1,* 66,215 745,581
Crinetics Pharmaceuticals, Inc. * 196,370 5,578,872
Cytokinetics, Inc. * 137,772 6,279,648
Day One Biopharmaceuticals, Inc. * 54,040 910,574
Dynavax Technologies Corp. * 63,541 894,022
Elevation Oncology, Inc. * 40,276 242,462
Imago Biosciences, Inc. * 47,547 1,127,339
Intellia Therapeutics, Inc. * 10,471 1,238,091
IVERIC bio, Inc. * 113,163 1,892,085
Kymera Therapeutics, Inc. * 29,146 1,850,480
Merus NV 1,* 95,587 3,039,667
Morphic Holding, Inc. * 28,281 1,339,954
Natera, Inc. * 18,382 1,716,695
Nuvalent, Inc. - A * 80,784 1,538,127
ProQR Therapeutics NV 1,* 223,726 1,792,045
Relay Therapeutics, Inc. * 152,821 4,693,133
SpringWorks Therapeutics, Inc. * 69,781 4,325,026
VectivBio Holding AG 1,* 56,642 278,112
Xenon Pharmaceuticals, Inc. 1,* 152,947 4,778,064
    57,196,533
Health Care Technology — 3.07%
EQRx, Inc. * 172,879 1,179,035
Inspire Medical Systems, Inc. * 9,480 2,180,969
OptimizeRx Corp. * 57,014 3,541,139
Phreesia, Inc. * 46,968 1,956,687
Sophia Genetics SA 1,*