UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT

INVESTMENT COMPANY

Investment Company Act file number 811-05344

WILLIAM BLAIR FUNDS

(Exact name of registrant as specified in charter)

222 WEST ADAMS STREET CHICAGO, IL 60606

(Address of principal executive offices) (Zip code)

Marco Hanig, President William Blair Funds.

222 West Adams Street

Chicago, IL 60606

(Name and address of agent for service)

Registrant’s telephone number, including area code: 312-236-1600

Date of fiscal year end: December 31

Date of reporting period: September 30, 2006

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 ((S)(S) 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. (S) 3507.

Item 1. Schedule of Investments

William Blair Growth Fund

Portfolio of Investments, September 30, 2006 (all dollar amounts in thousands) (unaudited)

	Issuer	Shares	Value
	Common Stocks
	Information Technology - 34.7%
*	Activision, Inc.	206,995	$	3,126
*	Adobe Systems Incorporated	149,060		5,582
	Arm Holding plc - ADR	454,275		2,980
*	Cognizant Technology Solutions Corporation	60,255		4,463
*	Cognos, Inc.+	92,860		3,389
*	EMC Corporation	507,980		6,086
*	Euronet Worldwide, Inc.	143,085		3,513
*	F5 Networks, Inc.	64,065		3,442
*	FLIR Systems, Inc.	95,990		2,607
*	J2 Global Communications, Inc.	237,550		6,454
	Jabil Circuit, Inc.	266,765		7,622
*	Kanbay International, Inc.	168,730		3,469
	Linear Technology Corporation	90,920		2,829
*	Network Appliance, Inc.	109,625		4,057
*	Nuance Communications, Inc.	212,175		1,734
	Paychex, Inc.	197,375		7,273
	Taiwan Semiconductor Mfg. Co. Ltd.-ADR	795,850		7,640
*	WebEx Communications, Inc.	130,095		5,076
*	Yahoo!, Inc.	152,020		3,843
				85,185
	Health Care - 21.7%
	Allergan, Inc.	25,265		2,845
*	Amgen, Inc.	129,715		9,279
	C. R. Bard, Inc.	34,680		2,601
*	Genentech, Inc.	92,390		7,641
*	Gilead Sciences, Inc.	57,930		3,980
*	Integra Lifesciences Holding Corporation	133,840		5,016
*	Kyphon, Inc.	91,930		3,440
*	MedImmune, Inc.	87,745		2,563
	Medtronic, Inc.	100,655		4,674
	Pharmaceutical Product Development, Incorporated	108,570		3,875
*	ResMed, Inc.	62,695		2,523
	UnitedHealth Group, Inc.	99,795		4,910
				53,347
	Industrials - 14.6%
*	Coinstar, Inc.	154,770		4,454
	Corporate Executive Board Company	41,760		3,755
	Danaher Corporation	173,486		11,913
	Graco, Inc.	104,240		4,072
	Knight Transportation, Inc.	232,900		3,948
	Rockwell Automation, Inc.	61,110		3,550
	Rockwell Collins, Inc.	78,650		4,313
				36,005

	Issuer	Shares or Principal Amount		Value
	Common Stocks-(continued)
	Consumer Discretionary - 10.7%
	Johnson Controls, Inc.		49,265	$	3,534
*	Kohl’s Corporation		82,140		5,333
*	Laureate Education, Inc.		99,705		4,772
	Marriott International, Inc., Class “A”		142,090		5,490
	Nike, Inc., Class “B”		56,350		4,937
*	VistaPrint Limited+		90,056		2,336
					26,402
	Financials - 5.8%
	Goldman Sachs Group, Inc.		39,750		6,725
	Charles Schwab & Co., Inc.		158,475		2,837
	SLM Corporation		87,960		4,572
					14,134
	Energy - 3.7%
	Smith International, Inc.		111,530		4,327
	Suncor Energy, Inc.+		66,285		4,776
					9,103
	Consumer Staples - 3.5%
	PepsiCo, Inc.		132,150		8,624
	Materials - 3.2%
	Praxair, Inc.		131,725		7,793
	Total Common Stock - 97.9% (cost $187,101)				240,593
	Investment in Affiliate
	William Blair Ready Reserves		563,814		564
	Total Investment in Affiliate - 0.2% (cost $564)				564
	Short-Term Investment
	Prudential Funding Demand Note, VRN 5.305%, due 10/02/06	$	1,600,000		1,600
	Total Short-Term Investment - 0.7% (Cost $1,600)				1,600
	Repurchase Agreement
	Investors Bank & Trust Company, 5.16% dated 9/29/2006, due 10/02/2006, repurchase price $3,521, collateralized by SBA Pool # 505857	$	3,353,562		3,353
	Total Repurchase Agreement - 1.3% (Cost $3,353)				3,353
	Total Investments - 100.1% (cost $192,618)				246,110
	Liabilities, plus cash and other assets - (0.1)%				(286	)
	Net assets - 100.0%			$	245,824

* Non-income producing securities

ADR = American Depository Receipt

+ = U.S. listed foreign security

VRN = Variable Rate Note

See accompanying Notes to Portfolio of Investments.

William Blair Tax-Managed Growth Fund

Portfolio of Investments, September 30, 2006 (all dollar amounts in thousands)(unaudtied)

	Issuer	Shares		Value
	Common Stocks
	Health Care - 23.4%
*	Amgen, Inc.		3,085	$	221
	Caremark Rx, Inc.		2,260		128
*	Express Scripts, Inc., Class “A”		1,610		121
*	Genentech, Inc.		2,270		188
*	American Healthways, Inc.		1,860		83
	IMS Health, Inc.		8,850		236
*	MedImmune, Inc.		4,310		126
*	Patterson Companies, Inc.		5,710		192
*	Psychiatric Solutions, Inc.		4,840		165
*	ResMed, Inc.		5,564		224
	Sanofi-Aventis-ADR		3,130		139
*	Santarus, Inc.		11,940		89
	Stryker Corporation		1,560		77
*	Zimmer Holdings, Inc.		2,420		163
					2,152
	Information Technology - 19.5%
*	Activision, Inc.		5,023		76
*	Adobe Systems Incorporated		4,070		152
	Arm Holdings plc -ADR		12,010		79
*	CACI International, Inc., Class “A”		1,720		94
*	Euronet Worldwide, Inc.		3,770		92
*	F5 Networks, Inc.		1,710		92
	First Data Corporation		3,670		154
	Jabil Circuit, Inc.		4,485		128
	Microchip Technology, Inc.		5,270		171
*	Network Appliance, Inc.		5,680		210
	Paychex, Inc.		4,280		158
	Qualcomm Incorporated		2,030		74
*	ScanSource, Inc.		3,120		95
	Taiwan Semiconductor Mfg. Co. Ltd.-ADR		10,706		103
*	WebEx Communications, Inc.		2,890		113
					1,791
	Industrials - 16.1%
	3M Company		1,630		121
	C.H. Robinson Worldwide, Inc.		2,950		131
	Danaher Corporation		3,820		262
	Fastenal Company		6,380		246
	General Electric Company		7,015		248
	Knight Transportation, Inc.		7,832		133
	Rockwell Automation, Inc.		1,990		116
	Rockwell Collins, Inc.		4,130		227
					1,484
	Financials - 9.8%
*	Affiliated Managers Group, Inc.		1,050		105
	Ambac Financial Group, Inc.		1,830		151
	American International Group		2,790		185
*	IntercontinentalExchange, Inc.		1,850		139
	Investors Financial Services Corporation		2,840		122
	Moody’s Corporation		3,070		201
					903
	Issuer	Shares or Principal Amount		Value
	Common Stocks - (continued)
	Consumer Discretionary - 8.0%
*	Bed, Bath & Beyond, Inc.		2,610	$	100
*	CarMax, Inc.		3,430		143
	Johnson Controls, Inc.		1,900		136
*	Laureate Education, Inc.		4,280		205
	Williams-Sonoma, Inc.		4,605		149
					733
	Energy - 6.8%
	EOG Resources, Inc.		1,970		128
	Smith International, Inc.		4,380		170
	Suncor Energy, Inc.+		4,490		324
					622
	Consumer Staples - 6.0%
	Colgate-Palmolive Company		3,030		188
	PepsiCo, Inc.		3,575		233
	Walgreen Co.		2,985		133
					554
	Materials - 4.1%
	Airgas, Inc.		4,890		177
	Praxair, Inc.		3,360		199
					376
	Total Common Stock - 93.7% (cost $6,890)				8,615
	Investment in Affiliate
	William Blair Ready Reserves		302,523		303
	Total Investment in Affiliate - 3.3% (cost $303)				303
	Short-Term Investment
	Prudential Funding Demand Note, VRN 5.305%, due 10/02/06	$	106,000		106
	Total Short-Term Investment - 1.1% (Cost $106)				106
	Repurchase Agreement
	Investors Bank & Trust Company, 5.16% dated 9/29/2006, due 10/02/2006, repurchase price $188, collateralized by SBA Pool # 507358	$	179,338		179
	Total Repurchase Agreement - 2.0% (Cost $179)				179
	Total Investments - 100.1% (cost $7,478)				9,203
	Liabilities, plus cash and other assets - (0.1)%				(4	)
	Net assets - 100.0%			$	9,199

* Non-income producing securities

ADR = American Depository Receipt

+ = U.S. listed foreign security

See accompanying Notes to Portfolio of Investments.

William Blair Large Cap Growth Fund

Portfolio of Investments, September 30, 2006 (all dollar amounts in thousands) (unaudited)

	Issuer	Shares		Value
	Common Stocks
	Information Technology - 29.5%
*	Adobe Systems Incorporated		15,770	$	590
*	Cisco Systems Incorporated		31,434		723
*	Corning Incorporated		16,300		398
*	EMC Corporation		35,540		426
	Infosys Technologies Ltd. - ADR		5,930		283
	Jabil Circuit, Inc.		13,695		391
	Linear Technology Corporation		11,800		367
*	Network Appliance, Inc.		10,690		396
	Paychex, Inc.		20,130		742
	Qualcomm Incorporated		8,715		317
	Taiwan Semiconductor Mfg. Co. Ltd.-ADR		58,549		562
*	Yahoo!, Inc.		17,490		442
					5,637
	Health Care - 20.6%
	Allergan, Inc.		2,260		255
*	Amgen, Inc.		9,750		697
	C. R. Bard, Inc.		2,550		191
	Caremark Rx, Inc.		11,330		642
*	Genentech, Inc.		4,470		370
*	Gilead Sciences, Inc.		6,600		454
	Eli Lilly and Company		6,130		349
*	MedImmune, Inc.		6,910		202
	Medtronic, Inc.		8,695		404
	UnitedHealth Group, Inc.		7,630		375
					3,939
	Consumer Discretionary - 13.1%
	Johnson Controls, Inc.		4,920		353
*	Kohl’s Corporation		6,358		413
	Marriott International, Inc., Class “A”		15,934		616
	Nike, Inc., Class “B”		8,390		735
	Staples, Inc.		15,665		381
					2,498
	Financials - 10.5%
	Capital One Financial Corporation		4,660		367
	Franklin Resources, Inc.		2,130		225
	Goldman Sachs Group, Inc.		3,910		662
	Charles Schwab & Co, Inc.		17,380		311
	SLM Corporation		8,370		435
					2,000
	Issuer	Shares or Principal Amount		Value
	Common Stocks - (continued)
	Industrials - 10.0%
	3M Company		4,625	$	344
	Danaher Corporation		11,032		758
	Rockwell Automation, Inc.		4,330		252
	Rockwell Collins, Inc.		10,020		549
					1,903
	Energy - 4.4%
	Schlumberger Limited+		7,090		440
	Suncor Energy, Inc.+		5,510		397
					837
	Consumer Staples - 3.9%
	PepsiCo, Inc.		11,390		743
	Materials- 3.8%
	Praxair, Inc.		12,415		734
	Total Common Stock - 95.8% (cost $16,328)				18,291
	Investment in Affiliate
	William Blair Ready Reserves		133,201		133
	Total Investment in Affiliate - 0.7% (cost $133)				133
	Short-Term Investment
	Prudential Funding Demand Note, VRN 5.305%, due 10/02/06	$	315,000		315
	Total Short-Term Investment - 1.6% (Cost $315)				315
	Repurchase Agreement
	IBT Repurchase Agreement, 5.16% dated 9/29/2006, due 10/02/2006, repurchase price $396, collateralized by SBA Pool # 503911	$	377,286		377
	Total Repurchase Agreement - 2.0% (Cost $377)				377
	Total Investments - 100.1% (cost $17,153)				19,116
	Liabilities, plus cash and other assets - (0.1)%				(23	)
	Net assets - 100.0%			$	19,093

* Non-income producing securities

ADR = American Depository Receipt

+ = U.S. listed foreign security

See accompanying Notes to Portfolios of Investments.

Small Cap Growth Fund

Portfolio of Investments, September 30, 2006 (all dollar amounts in thousands) (unaudited)

	Issuer	Shares		Value
	Common Stocks
	Information Technology - 31.9%
*	Access Integrated Technologies, Inc.		1,341,607	$	12,705
*	CyberSource Corporation		901,023		10,659
*	DealerTrack Holdings, Inc.		274,208		6,063
*	DTS, Inc.		637,645		13,505
*	eCollege.com		470,859		7,529
*	Electronic Clearing House		856,157		15,411
*	Euronet Worldwide, Inc.		546,806		13,424
*	F5 Networks, Inc.		347,956		18,692
	Heartland Payment Systems, Inc.		447,727		11,641
*	J2 Global Communications, Inc.		1,021,317		27,749
*	Kanbay International, Inc.		1,588,909		32,668
*	Lionbridge Technologies, Inc.		1,639,359		12,508
*	Nuance Communications, Inc.		1,927,888		15,751
*	Optimal Group, Inc.+		1,286,944		15,134
	Patni Computer Systems Limited - ADR		463,052		8,826
*	PDF Solutions, Inc.		1,259,291		13,802
*	Silicon Labratories, Inc.		535,395		16,608
*	Skillsoft, plc - ADR		1,642,847		10,498
*	Think Partnership, Inc.		440,610		868
*	Ultimate Software Group, Inc.		842,403		19,822
*	ValueClick, Inc.		1,259,402		23,349
*	Volterra Semiconductor Corporation		1,729,119		28,098
*	WebEx Communications, Inc.		401,425		15,664
*	WNS Holdings Limited - ADR		494,952		14,131
*	Workstream, Inc.+		3,948,158		4,264
					369,369
	Health Care - 22.3%
*	American Medical Systems Holdings, Inc.		885,405		16,318
*	Axcan Pharma, Inc.+		940,031		12,841
*	CryoLife, Inc.		997,362		6,433
*	DJO, Inc.		393,113		16,326
*	Hythiam, Inc.		1,624,862		11,732
*	Integra Lifesciences Holdings Corporation		506,597		18,987
*	Kensey Nash Corporation		545,229		15,959
*	Kyphon, Inc.		308,882		11,558
*	Lifecore Biomedical, Inc.		1,036,317		14,612
*	Matria Healthcare, Inc.		528,495		14,687
	PolyMedical Corporation		269,792		11,550
*	PSS World Medical, Inc.		905,604		18,103
*	Psychiatric Solutions, Inc.		371,518		12,665
*	Quidel Corporation		876,653		12,378
*	Sangamo Biosciences, Inc.		800,473		4,451
*	Santarus, Inc.		3,418,115		25,362
*	Surmodics, Inc.		484,262		17,007
*	Telik, Inc.		630,251		11,212
*	Zila, Inc.		2,580,537		6,400
					258,581
	Consumer Discretionary - 19.0%
*	4 Kids Entertainment, Inc.		612,915		10,113
*	AFC Enterprises, Inc.		881,871		12,734
*	Century Casinos, Inc.		1,381,347		13,731
*	DeVry, Inc.		546,186		11,617
*	Dick’s Sporting Goods, Inc.		260,074		11,839
*	Duckwall-ALCO Stores, Inc.		271,600		10,109
*	Jarden Corporation		819,592		27,022
*	Jos. A. Bank Clothiers, Inc.		435,355		13,043
*	Kona Grill, Inc.		308,375		4,626
*	Kona Grill, Inc.***		135,134		2,027
*	Laureate Education, Inc.		859,681		41,144
*	Lions Gate Entertainment Corporation+		1,239,472		12,407
*	New Oriental Education & Technology Group, Inc. - ADR		39,550		959
	Strayer Education, Inc.		114,144		12,352
*	ValueVision Media, Inc., Class “A”		1,761,453		20,415
*	VistaPrint Limted +		632,157		16,398
					220,536
	Issuer	Shares or Principal Amount		Value
	Common Stocks - (continued)
	Industrials - 11.3%
*	Coinstar, Inc.		596,300	$	17,161
	Comfort Systems USA, Inc.		1,130,448		12,955
*	Corrections Corporation of America		378,393		16,365
*	FirstService Corporation +		559,859		13,336
*	Frozen Food Express Industries, Inc.		635,005		4,820
*	Huron Consulting Group, Inc.		422,782		16,573
*	Kforce, Inc.		938,319		11,194
*	Labor Ready, Inc.		666,180		10,612
*	Lecg Corporation		674,344		12,651
*	Luna Innovations, Inc.		764,860		2,815
*	NCI Building Systems, Inc.		221,632		12,892
					131,374
	Energy - 5.5%
*	Carrizo Oil & Gas, Inc.		377,292		9,730
*	Hornbeck Offshore Services, Inc.		491,852		16,477
*	Oil States International, Inc.		346,129		9,519
*	Petrohawk Energy Corporation		1,232,104		12,789
*	TETRA Technologies, Inc.		612,280		14,793
					63,308
	Financials - 4.8%
	Highland Hospitality Corporation		1,172,059		16,796
	Midwest Banc Holdings, Inc.		285,421		6,970
	National Financials Partners Corporation		387,254		15,889
*	Signature Bank New York		517,566		16,008
					55,663
	Consumer Staples - 0.5%
*	Overhill Farms, Inc.		1,903,720		6,092
	Total Common Stock - 95.3% (Total Cost $975,752)				1,104,923
	Preferred Stock
	Think Partnership, Inc. **		7,120		7,014
	Total Preferred Stock - 0.6% Cost ($7,120)				7,014
	Investment in Warrants
*	Think Partnership, Inc. **		1,424,000		—
	Total Investment in Warrants - 0.0% (Cost $0)				—
	Investment in Affiliate
	William Blair Ready Reserves		16,708,809		16,709
	Total Investment in Affiliate - 1.4% (Cost $16,709)				16,709
	Short-Term Investments
	American Express Demand Note, VRN 5.172%, due 10/2/06	$	6,328,000		6,328
	Prudential Funding Demand Note, VRN 5.305%, due 10/2/06		6,147,000		6,147
	Total Short-Term Investments - 1.1% (Cost $12,475)				12,475
	Repurchase Agreement
	Investors Bank & Trust Company, 5.16% dated 9/29/2006, due 10/02/2006, repurchase price $18,228, collateralized by FNMA Pool # 815138	$	17,360,035		17,360
	Total Repurchase Agreement - 1.5% (Cost $17,360)				17,360
	Total Investments - 99.9% (cost $1,029,416)				1,158,481
	Cash and other assets, less liabilities - 0.1%				938
	Net assets - 100.0%			$	1,159,419

* Non-income producing securities

ADR = American Depository Receipt

+ = U.S. listed foreign security

** = Fair Valued pursuant to Valuation Procedures adopted by the Board of Trustees. The holding represents 0.60% of the Fund’s net assets at September 30, 2006. This security was also deemed illiquid pursuant to Liquiduty Procedures approved by Board of Trustees.

*** = Restricted shares. These shares have been deemed illiquid pursuant to Liquidity Procedures approved by the Board of Trustees. The holding represents 0.17% of the Fund’s net assets at September 30, 2006.

See accompanying Notes to Portfolios of Investments.

Mid Cap Growth Fund

Portfolio of Investments, September 30, 2006 (all dollar amounts in thousands) (unaudited)

	Issuer	Shares		Value
	Common Stocks
	Information Technology - 29.4%
*	Activision, Inc.		25,070	$	379
*	Cognizant Technology Solutions, Class “A”		2,740		203
*	F5 Networks, Inc.		6,494		349
*	FLIR Systems, Inc.		8,930		242
*	Intuit, Inc.		11,470		368
*	Iron Mountain, Inc.		8,585		369
*	J2 Global Communications, Inc.		14,565		396
	Jabil Circuit, Inc.		17,535		501
	Maxim Intergrated Products, Inc.		8,095		227
	Microchip Technology, Inc.		6,760		219
*	Network Appliance, Inc.		9,276		343
	Paychex, Inc.		15,685		578
*	ValueClick, Inc.		13,445		249
*	WebEx Communications, Inc.		5,915		231
					4,654
	Consumer Discretionary - 18.9%
*	Bed, Bath and Beyond, Inc.		11,505		440
*	CarMax, Inc.		3,660		153
*	Cheesecake Factory, Inc.		4,995		136
*	Dick’s Sporting Goods, Inc.		5,480		250
*	Getty Images, Inc.		2,590		129
*	Lamar Advertising Company, Class “A”		2,890		154
*	Laureate Education, Inc.		9,480		454
*	Life Time Fitness, Inc.		7,425		344
*	O’Reilly Automotive, Inc.		8,053		267
*	Sonic Corporation		7,227		163
	Strayer Education, Inc.		2,165		234
*	Tractor Supply Company		5,511		266
					2,990
	Health Care - 17.9%
	C.R. Bard, Inc.		4,305		323
*	Express Scripts, Inc., Class “A”		3,917		296
*	American Healthways, Inc.		5,305		237
*	IDEXX Laboratories, Inc.		2,165		197
*	Integra LifeSciences Holdings Corporation		6,210		233
*	Kyphon, Inc.		6,549		245
*	MedImmune, Inc.		11,920		348
*	Patterson Companies, Inc.		6,845		230
	Pharmaceutical Product Development, Inc.		11,655		416
*	ResMed, Inc.		7,875		317
					2,842
	Issuer	Shares or Principal Amount		Value
	Common Stocks (Continued)
	Industrials - 15.0%
	Corporate Executive Board Company		3,695	$	332
	Fastenal Company		17,305		667
	Graco Inc.		7,020		274
	Knight Transportation, Inc.		10,495		178
*	Monster Worldwide, Inc.		4,195		152
	MSC Industrial Direct Company, Inc., Class “A”		7,040		287
	Robert Half International, Inc.		2,500		85
	Rockwell Collins, Inc.		7,315		401
					2,376
	Energy - 7.1%
*	Grant Prideco, Inc.		5,530		210
	Smith International, Inc.		10,200		396
*	Southwestern Energy Company		8,010		239
	XTO Energy Corporation		6,670		281
					1,126
	Financials - 5.9%
*	E*Trade Financial Corporation		7,070		169
*	IntercontinetalExchange, Inc.		5,098		383
	Investors Financial Services Corporation		8,935		385
					937
	Materials - 1.9%
	Airgas, Inc.		8,355		302
	Total Common Stock - 96.1% (cost $15,018)				15,227
	Investment in Afiliate
	William Blair Ready Reserves		202,473		202
	Total Investment In Affiliate - 1.3% (cost $202)				202
	Short-Term Investment
	Prudential Funding Demand Note, VRN 5.305%, due 10/2/06	$	25,000		25
	Total Short-Term Investment - 0.2% (cost $25)				25
	Repurchase Agreement
	Investors Bank & Trust Company, 5.16% dated 9/29/2006, due 10/02/2006, repurchase price $480, collateralized by FHLMC Pool # 781482	$	456,926		457
	Total Repurchase Agreement - 2.8% (Cost $457)				457
	Total Investments - 100.4% (cost $15,702)				15,911
	Liabilities, plus cash and other assets - (0.4)%				(60	)
	Net Assets - 100%			$	15,851

* Non-income producing securities

VRN = Variable Rate Note

+ = U.S. listed foreign security

See accompanying Notes to Portfolio of Investments.

Small-Mid Cap Growth Fund

Portfolio of Investments, September 30, 2006 (all dollar amounts in thousands) (unaudited)

	Issuer	Shares		Value
	Common Stocks
	Information Technology - 27.4%
*	Activision, Inc.		115,489	$	1,744
*	Cogent, Inc.		45,600		626
*	Euronet Worldwide, Inc.		68,300		1,677
*	F5 Networks, Inc.		28,925		1,554
*	Intuit, Inc.		46,720		1,499
*	Iron Mountain, Inc.		46,114		1,980
*	J2 Global Communications, Inc.		77,800		2,114
	Jabil Circuit, Inc.		80,600		2,303
*	Kanbay International, Inc.		88,500		1,819
	Microchip Technology, Inc.		29,600		960
*	Nuance Communications, Inc.		78,400		640
*	PDF Solutions, Inc.		64,800		710
*	Ultimate Software Group, Inc.		56,000		1,318
*	ValueClick, Inc.		135,312		2,509
*	WebEx Communications, Inc.		42,540		1,660
					23,113
	Consumer Discretionary - 19.0%
*	Bed, Bath and Beyond, Inc.		44,000		1,683
*	CarMax, Inc.		39,500		1,647
*	Cheesecake Factory, Inc.		27,000		734
*	Getty Images, Inc.		14,600		725
*	Guitar Center, Inc.		21,200		947
*	Jarden Corporation		47,250		1,558
*	Lamar Advertising Company, Class “A”		18,660		997
*	Laureate Education, Inc.		46,549		2,228
*	Life Time Fitness, Inc.		40,360		1,868
*	O’Reilly Automotive, Inc.		50,100		1,664
	Strayer Education, Inc.		12,400		1,342
*	Tractor Supply Company		14,000		676
					16,069
	Health Care - 18.3%
	C.R.Bard, Inc.		12,900		968
*	DJO, Inc.		34,200		1,420
*	Healthways, Inc.		33,500		1,494
*	IDEXX Laboratories, Inc.		12,600		1,148
*	Integra LifeSciences Holdings Corporation		38,840		1,456
*	Kyphon, Inc.		35,090		1,313
*	Patterson Companies, Inc.		36,200		1,217
	Pharmaceutical Product Development, Inc.		50,500		1,802
*	PSS World Medical, Inc.		64,200		1,283
*	ResMed, Inc.		31,900		1,284
*	Surmodics, Inc.		34,200		1,201
*	Telik, Inc.		46,861		834
					15,420
	Issuer	Shares or Principal Amount		Value
	Common Stocks (Continued)
	Industrials - 18.1%
*	Beacon Roofing Supply, Inc.		105,104	$	2,127
*	Coinstar, Inc.		44,333		1,276
	Corporate Executive Board Company		6,400		575
*	Corrections Corporation of America		30,400		1,315
	Fastenal Company		84,000		3,240
	Graco Inc.		24,000		937
*	Kforce, Inc.		75,165		897
	Knight Transportation, Inc.		60,850		1,031
*	Monster Worldwide, Inc.		28,600		1,035
	MSC Industrial Direct Company, Inc., Class “A”		24,240		988
	Rockwell Collins, Inc.		32,900		1,804
					15,225
	Energy - 6.4%
*	Grant Prideco, Inc.		26,300		1,000
	Smith International, Inc.		47,400		1,839
*	Southwestern Energy Company		28,900		864
*	Toreador Resources Corporation		30,300		558
	XTO Energy Corporation		27,300		1,150
					5,411
	Financials - 5.6%
*	E*Trade Financial Corporation		39,368		942
*	IntercontinentalExchange, Inc.		16,700		1,254
	Investors Financial Services Corporation		38,870		1,674
*	Signature Bank New York		27,900		863
					4,733
	Materials - 1.9%
	Airgas, Inc.		45,110		1,632
	Total Common Stock - 96.7% (cost $72,875)				81,603
	Investment in Afiliate
	William Blair Ready Reserves		697,971		698
	Total Investment In Affiliate - 0.8% (cost $698)				698
	Short-Term Investment
	Prudential Funding Demand Note, VRN 5.305%, due 10/2/06	$	986,000		986
	Total Short-Term Investment - 1.1% (cost $986)				986
	Repurchase Agreement
	Investors Bank & Trust Company, 5.16% dated 9/29/2006, due 10/02/2006, repurchase price $1,118, collateralized by SBA Pool, # 505339	$	1,064,747		1,065
	Total Repurchase Agreement - 1.3% (Cost $1,065)				1,065
	Total Investments - 99.9% (cost $75,624)				84,352
	Cash and other assets, less liabilities - 0.1%				67
	Net Assets - 100%			$	84,419

* Non-income producing securities

VRN = Variable Rate Note

See accompanying Notes to Portfolios of Investments.

International Growth Fund

Portfolio of Investments, September 30, 2006 (all dollar amounts in thousands) (unaudited)

	Issuer	Shares	Value
	Common Stocks
	Europe - 31.6%
	Austria - 1.4%
	Erste Bank (Banking)	734,192	$	45,676
	Raiffeisen International Bank (Banking)	297,854		31,745
				77,421
	France - 9.1%
	April Group S.A. (Insurance)	142,739		6,142
	BNP Paribas (Banking)	749,400		80,535
	Capgemini S.A. (IT services)	744,800		39,419
	Essilor International (Health care equipment & supplies)	446,800		45,730
	Eurazeo (Diversified financial services)	226,340		26,038
	Iliad S.A. (Internet software & services)	263,450		18,929
	Klepierre (Real estate investment trusts)	134,600		20,148
	L’Oreal S.A. (Personal products)	1,339,100		135,846
	LVMH Moet Hennessey Louis Vuitton SA (Apparel & luxury goods)	662,852		68,172
*	Orpea (Health care providers & services)	184,912		14,034
	Vinci S.A.(Construction & engineering)	425,600		47,315
				502,308
	Germany - 4.7%
	Bijou Brigitte (Apparel & luxury goods)	66,750		17,168
	Celesio AG (Health care providers & services)	602,360		31,378
	Continental AG (Auto components)	261,500		30,272
	CTS Eventim AG (Media)	178,703		5,821
	E.ON AG (Electrical utilities)	467,500		55,440
*	Q-Cells AG (Electrical equipment)	484,120		19,779
*	Qiagen NV (Life science tools & services)	1,202,800		18,822
	Rational AG (Houshold durables)	56,200		10,783
	SAP AG (Software)	290,600		57,538
	Solarworld AG (Electrical equipment)	218,900		11,990
				258,991
	Greece - 1.7%
	Coca-Cola Hellenic Bottling S.A. (Beverages)	827,271		28,472
	EFG Eurobank (Banking)	981,800		30,068
	National Bank of Greece (Banking)	769,052		33,181
				91,721
	Ireland - 2.1%
	Anglo Irish Bank plc (Banking)	2,926,500		48,008
	Kingspan Group plc (Building products)	1,470,300		30,296
*	Ryanair Holdings plc - ADR (Airlines)	398,800		25,240
	United Drug plc (Health care providers & services)	2,325,900		10,344
				113,888
	Italy - 2.9%
	Azimut Holding SpA (Capital markets)	1,418,900		16,200
	Credito Emiliano SpA (Banking)	1,327,000		18,831
	Luxottica Group SpA (Apparel & luxury goods)	1,778,900		52,450
	Saipem SpA (Energy equipment & services)	2,346,500		51,017
	Tod’s SpA (Apparel & luxury goods)	246,700		19,506
				158,004
	Netherlands - 0.6%
*	Tomtom NV (Software)	768,600		32,337
	Norway - 0.3%
	Statoil Asa (Oil, gas & consumable fuels)	766,400		18,250
	Spain - 1.5%
*	Grifols S.A. (Biotechnology)	2,025,612		20,523
	Industria De Textile (Specialty retail)	1,357,700		63,323
				83,846
	Sweden - 1.2%
	Ericsson (LM) (Communications equipment)	10,911,000		37,697
*	Modern Times Group (Media)	376,400		19,480
*	Tradedoubler AB (Internet software & services)	379,600		7,379
				64,556
	Switzerland - 6.1%
*	EFG International (Capital markets)	768,300		25,228
	Kuehne & Nagel International AG (Marine)	642,440		44,470
	Nobel Biocare Holdings AG (Health care equipment & supplies)	105,700		25,991
*	Partners Group Global Opporunites, Ltd. (Capital markets)	99,416		8,538
	Roche Holdings AG (Pharmaceuticals)	655,200		113,197
	SGS S.A. (Commercial services & supplies)	17,980		18,094
	UBS AG (Capital markets)	1,690,600		101,058
				336,576
	United Kingdom - 18.5%
	AstraZeneca plc (Pharmaceuticals)	1,723,400		107,641
	BG Group plc (Oil, gas & consumable fuels)	5,879,000		71,438
*	Cairn Energy plc (Oil, gas & consumable fuels)	798,900		27,904
	Carphone Warehouse Group plc (Specialty retail)	4,360,180		25,075
*	CSR plc (Communications equipment)	1,176,200		18,553
	HBOS plc (Banking)	5,620,700		111,143
	Homeserve plc (Commercial services & supplies)	431,800		13,430
	Man Group plc (Capital markets)	6,558,800		55,007
	Michael Page International (Commercial services & supplies)	4,380,400		31,527
	Northern Rock plc (Thrifts & mortgage finance)	3,265,200		71,377
	Reckitt Benckiser plc (Household products)	2,299,800		95,274
*	Rolls-Royce Group plc (Aerospace & defense)	13,176,600		111,671
	Rotork plc (Electronic equipment & instruments)	1,275,064		18,330
	RPS Group plc (Commercial services & supplies)	2,545,600		10,902
	Serco Group (Commercial services & supplies)	4,748,909		33,428
	Standard Chartered plc (Banking)	1,920,500		49,151
	Tesco plc (Food & staples retailing)	15,388,500		103,692
	Tullow Oil plc (Oil, gas & consumable fuels)	2,849,390		20,160
	Ultra Electronic Holdings plc (Aerospace & defense)	970,700		19,118
	Victrex plc (Chemicals)	544,100		8,069
	VT Group plc (Aerospace & defense)	1,957,300		17,732
				1,020,622
	Emerging Asia - 15.0%
	China - 4.7%
	China Life Insurance Co. (Insurance)	29,636,000		57,901
	China Mengniu Dairy Co. (Food products)	14,183,000		23,746
	China Vanke Company Ltd. (Real estate management & development)	13,087,900		13,773
	Ctrip.com International Ltd.—ADR (Hotels, restaurants & leisure)	425,600		19,131
*	Focus Media Holding Ltd.- ADR (Media)	412,200		23,875
*	Foxconn International (Communications equipment)	9,604,000		29,540
	Fu Ji Food & Catering (Hotels, restaurants & leisure)	5,739,000		9,591
	Hopson Development Holdings (Real estate management & development)	3,849,000		7,763
	Lee and Man Paper Manufacturing Ltd. (Containers & packaging)	4,904,000		9,190
	Li Ning Co. Ltd. (Leisure equipment & products)	17,312,000		19,752
	Parkson Retail Group Ltd. (Multiline retail)	3,268,000		12,090
	Ports Design Limited (Apparel & luxury goods)	6,067,000		9,340
*	Suntech Power Holdings Co. Ltd—ADR (Electrical equipment)	438,400		11,324
	Wumart Stores, Inc., Class “H” (Food & staples retailing)	3,370,000		11,675
				258,691
	India - 4.3%
	Bharat Heavy Electricals Ltd. (Electrical equipment)	637,700		33,241
*	Bharti Airtel Ltd. (Wireless telecommunication services)	1,848,600		18,899
	Dabur India Ltd. (Personal products)	7,185,400		21,368
	HDFC Bank (Banking)	1,185,100		23,821
	Hindustan Lever Ltd. (Household durables)	5,958,900		33,389
	Housing Development Finance Corp. (Thrifts & mortgage finance)	673,600		22,461
	Infosys Technologies, Ltd. (IT services)	1,132,948		45,620
	Maruti Udyog Ltd. (Automobiles)	931,400		19,865
	Suzlon Energy Ltd. (Electrical equipment)	689,100		18,528
				237,192
	Indonesia - 0.2%
*	PT Kalbe Farma Tbk (Pharmaceuticals)	84,423,700		12,069
	Malaysia - 0.6%
	Bumiputra Commerce Holdings Bhd (Banking)	13,921,100		25,082
	Transmile Group Bhd (Air freight & logistics)	2,555,400		8,041
				33,123
	South Korea - 2.4%
	Kookmin Bank (Banking)	330,490		25,883
*	NHN Corp. (Internet software & services)	311,820		32,656
	Samsung Electronics Co. (Semiconductors)	75,030		52,601
	Shinsegae Co. Ltd. (Food & staples retailing)	41,360		21,408
				132,548
	Taiwan - 2.8%
	High Tech Computer Corporation (Computers)	1,307,800		34,572
*	Himax Technologies, Inc. - ADR (Semiconductors)	1,238,700		7,073
	Hon Hai Precision Industry (Electronic equipment)	12,517,780		76,188
	Largan Precision Co. Ltd. (Leisure equipment & products)	807,450		16,520
	Mediatek Inc. (Semiconductors)	2,376,450		22,504
				156,857

See accompanying Notes to Portfolios of Investments.

International Growth Fund

Portfolio of Investments, September 30, 2006 (all dollar amounts in thousands) (unaudited)

	Issuer	Shares	Value
	Japan - 14.0%
	Aeon Mall Co., Ltd. (Real estate management & development)	482,400	$	25,535
	Chiyoda Corp. (Construction & engineering)	1,078,600		21,137
	Denso Corporation (Auto components)	2,614,100		92,025
	Honeys Company, Ltd. (Specialty retail)	362,900		18,566
	Hoya Corporation (Electronic equipment & instruments)	720,700		27,181
	ITO EN, Ltd. (Beverages)	501,400		17,273
	Joint Corporation (Real estate management & development)	542,000		18,587
*	K.K. DaVinci Advisors (Real estate management & development)	15,387		14,763
	Kenedix, Inc. (Real estate management & development)	2,937		16,427
	Keyence Corporation (Electronic equipment & instruments)	203,206		46,769
	Komatsu Ltd. (Machinery)	2,136,000		36,960
	MISUMI Group, Inc. (Trading companies & distributors)	838,200		14,363
	Mitsubishi Tokyo Financial (Banking)	7,935		102,105
	Nakanishi Inc. (Health care equipment & supplies)	134,100		17,664
	Nitori Company Ltd. (Specialty retail)	387,720		17,535
	Nitto Denko Corporation (Chemicals)	366,100		21,688
	Orix Corporation (Consumer finance)	392,800		108,528
	Park 24 Co., Ltd. (Commercial services & supplies)	610,500		20,078
	Ryohin Keikaku Co. Ltd. (Multiline retail)	275,600		19,512
	Sharp Corp. (Household durables)	2,148,700		36,874
	Sparx Asset Management Co. (Capital markets)	11,737		10,858
	Suruga Bank (Banking)	3,010,000		37,620
	Yamada Denki Company (Specialty retail)	306,980		30,826
				772,874
	Asia -7.0%
	Australia - 2.9%
	BHP Billiton Ltd. (Metals & mining)	2,947,300		55,871
	Macquarie Bank, Ltd. (Capital markets)	976,200		50,333
	Seek Ltd. (Commercial services & supplies)	3,560,200		13,385
	United Group Ltd. (Construction & engineering)	1,937,000		20,490
	WorleyParsons, Ltd. (Energy equipment & services)	1,486,500		18,631
				158,710
	Hong Kong - 2.0%
*	China Insurance International (Insurance)	8,143,438		6,334
	Esprit Holdings Ltd. (Specialty retail)	5,559,500		50,663
	Li & Fung Ltd. (Distributors)	21,079,200		52,335
				109,332
	Singapore - 2.1%
	Capitaland, Ltd. (Real estate management & development)	25,711,000		81,533
	Goodpack Ltd. (Air freight & logistics)	6,968,000		7,536
	Osim International Ltd. (Specialty retail)	13,676,240		16,182
	Raffles Education Corporation Ltd. (Diversified consumer services)	5,314,000		8,495
				113,746
	Emerging Latin America - 6.4%
	Brazil - 2.2%
	Companhia de Concessoes Rodoviarias (Transportation infrastructure)	1,900,700		18,358
	Cyrela Brazil Realty S.A. (Household durables)	738,600		12,565
	Gol Linhas Aereas Int S.P - ADR (Airlines)	797,000		27,377
	Localiza Rent a Car S.A. (Road & rail)	457,000		9,479
	Lojas Renner S.A. (Multiline retail)	224,700		13,021
	Natura Cosmeticos S.A. (Personal products)	1,235,400		15,171
	Submarino S.A.(Internet & catalog retail)	636,400		12,381
*	Totvs S.A. (Software)	572,800		10,814
				119,166
	Chile - 1.0%
*	Cencosud S.A. -ADR 144A (Specialty retail)	798,930		30,994
	S.A.C.I. Falabella (Multiline retail)	7,290,100		22,479
				53,473
	Columbia - 0.3%
	Bancolombia S.A. - ADR (Banking)	664,200		18,996
	Mexico - 2.5%
	America Movil S.A. (Wireless telecommunication services)	20,172,600		39,817
*	Corporacion Geo Sa De Cv (Household durables)	2,971,700		12,501
*	Desarrolladora Homex S.A. -ADR (Household durables)	327,400		12,363
	Grupo Aeropuertario Del ADR (Transportation infrastructure)	262,800		8,935
*	Urbi Desarrollos Urbanos S.A. (Household durables)	8,358,600		23,531
	Walmart de Mexico (Food & staples retailing)	12,131,200		41,269
				138,416
	Panama - 0.4%
	Copa Holdings S.A., Class “A” (Airlines)+	719,000		24,683

	Issuer	Shares or Principal Amount		Value
	Canada - 3.9%
	Cameco Corporation (Metals & mining)		1,334,700	$	48,635
*	Gildan Activewear, Inc. (Apparel & luxury goods)		375,800		18,270
	Manulife Financial Corp. (Insurance)		2,114,900		68,116
	Ritchie Brothers Auctioneers, Inc. (Commercial services & supplies)+		286,200		15,343
	Shoppers Drug Mart Corp. (Food & staples retailing)		389,400		15,907
	Suncor Energy, Inc.(Oil, gas & consumable fuels)		635,100		45,564
					211,835
	Emerging Europe, Mid-East, Africa - 1.6%
	Czech Republic - 0.2%
*	Central European Media Enterprises Ltd. Class “A” (Media)+		177,000		11,868
	Israel - 0.6%
	Teva Pharmaceutical Industries, Ltd. - ADR (Pharmaceuticals)		922,400		31,445
	Russia - 0.3%
*	CTC Media, Inc. (Media)+		775,352		17,290
	South Africa - 0.5%
*	Aspen Pharmacare (Pharmaceuticals)		1,392,000		6,222
	Naspers Ltd. (Media)		749,990		11,519
	Sasol ASA (Oil, gas & consumable fuels)		286,900		9,430
					27,171
	Total Common Stock — 98.0% (cost $4,194,136)				5,398,005
	Preferred Stock
	Brazil - 0.9%
	Banco Itau Holding (Banking)		799,300		23,932
	Petroleo Brasileiro S.A. (Oil, gas & consumable fuels)		1,268,400		23,649
					47,581
	Total Preferred Stock - 0.9% (cost $32,851)				47,581
	Investment in Affiliate
	William Blair Ready Reserves Fund		15,245,285		15,245
	Total Investment in Affiliate - 0.3% (cost $15,245)
	Short-Term Investments
	American Express Demand Note, VRN 5.175% due 10/2/06	$	11,769,000		11,769
	Prudential Funding Demand Note, VRN 5.305% due 10/2/06		12,694,000		12,694
	Total Short-term Investments - 0.4% (cost $24,463)				24,463
	Repurchase Agreement
	Investors Bank & Trust Company, 5.16% dated 9/29/2006, due 10/02/2006, repurchase price $20,934, collateralized by FN, Pool# 821228	$	19,936,718		19,937
	Total Repurchase Agreement - 0.4% (Cost $19,937)				19,937
	Total Investments - 100.0% (cost $4,286,632)				5,505,231
	Liabilities, plus cash and other assets - 0.0%				2,646
	Net assets - 100.0%			$	5,507,877

* Non-income producing securities

ADR = American Depository Receipt

GDR = Global Depository Receipt

VRN = Variable Rate Note

For securities, primarily traded on exchanges or markets that close before the close of regular trading on the New York Stock Exchange, the Fund uses an independent pricing service on a daily basis to fair value price the securities pursant to Valuation Procedures adopted by the Board of Trustees.

See accompanying Notes to Portfolios of Investments.

International Growth Fund

Portfolio of Investments, September 30, 2006 (all dollar amounts in thousands) (unaudited)

At September 30, 2006 the Fund’s Portfolio of Investments includes the following industry categories:

Financials	27.9	%
Consumer Discretionary	18.4	%
Industrials and Services	13.8	%
Information Technology	11.2	%
Consumer Staples	10.4	%
Healthcare	8.4	%
Energy	5.2	%
Materials	2.6	%
Telecommunication Services	1.1	%
Utilities	1.0	%
	100.0	%

At September 30, 2006 the Fund’s Portfolio of Investments includes the following currency categories:

Euro	23.7	%
British Pound Sterling	18.7	%
Japanese Yen	14.2	%
Swiss Franc	6.2	%
Hong Kong Dollar	5.8	%
United States Dollar	5.2	%
Indian Rupee	4.4	%
Canadian Dollar	3.6	%
Australian Dollar	2.9	%
Taiwan Dollar	2.7	%
Brazilian Real	2.6	%
South Korean Won	2.4	%
Mexico Nuevo Peso	2.2	%
Singapore Dollar	2.1	%
Swedish Krona	1.2	%
All other currencies	2.1	%
	100.0	%

See accompanying Notes to Portfolios of Investments.

International Equity Fund

Portfolio of Investments, September 30, 2006 (all dollar amounts in thousands) (unaudited)

	Issuer	Shares	Value
	Common Stocks
	Europe - 38.8%
	Austria - 1.4%
	Erste Bank (Banking)	34,032	$	2,117
	Raiffeisen International Bank (Banking)	13,900		1,482
				3,599
	France - 13.4%
	BNP Paribas (Banking)	47,870		5,144
	Capgemini S.A. (IT services)	35,000		1,852
	Essilor International (Health care supplies)	26,000		2,661
	Eurazeo (Diversified financial services)	16,800		1,933
	Groupe Danone (Food products)	47,300		6,634
	Iliad S.A. (Internet software and services)	11,200		805
	L’Oreal S.A. (Personal products)	79,500		8,065
	LVMH Moet Hennessey Louis Vuitton SA (Apparel & luxury goods)	45,400		4,669
	Vinci S.A. (Construction & engineering)	26,300		2,924
				34,687
	Germany - 4.0%
	Bijou Brigitte (Apparel & luxury goods)	2,280		586
	Celesio AG (Healthcare providers & services)	28,100		1,464
	E.ON AG (Electric utilities)	36,000		4,269
*	Qiagen, NV. (Biomedical)	81,400		1,274
	SAP AG (Software)	10,750		2,129
	Solarworld AG (Electrical equipment)	11,800		646
				10,368
	Greece - 2.3%
	Coca-Cola Hellenic Bottling S.A. (Beverages)	60,700		2,089
	EFG Eurobank (Banking)	40,960		1,255
	National Bank of Greece (Banking)	60,960		2,630
				5,974
	Ireland - 1.2%
	Anglo Irish Bank plc (Banking)	156,800		2,572
	IAWS Group plc (Food products)	34,700		645
				3,217
	Italy - 3.1%
	Azimut Holding SpA (Capital markets)	49,900		570
	Luxottica Group SpA (Apparel and luxury goods)	154,800		4,564
	Saipem SpA (Energy equipment and services)	133,500		2,902
				8,036
	Netherlands- 0.9%
*	Tomtom NV (Software)	53,500		2,251
	Norway - 0.5%
	Statoil ASA (Oil, gas & consumable fuels)	54,600		1,300
	Spain - 1.8%
	Industria De Textile (Specialty retail)	97,200		4,533
	Sweden - 1.3%
	Ericsson LM (Communications equipment)	807,000	$	2,788
*	Modern Times Group (Media)	14,800		766
				3,554
	Switzerland - 8.9%
*	EFG International (Financial services)	42,600		1,399
	Kuehne & Nagel International AG (Marine)	29,400		2,035
	Nobel Biocare Holding AG (Health care equipment & supplies)	4,940		1,215
	Roche Holdings AG (Pharmaceuticals)	53,300		9,209
	SGS S.A. (Commercial services & supplies)	1,950		1,962
	UBS AG (Capital markets)	119,300		7,131
				22,951
	United Kingdom - 19.6%
	AstraZeneca plc (Pharmaceuticals)	103,400		6,458
	BG Group plc (Oil, gas & consumable fuels)	473,000		5,748
*	Cairn Energy plc Oil, gas & consumable fuels)	46,100		1,610
	Carphone Warehouse Group plc (Specialty retail)	204,900		1,178
*	CSR plc (Communications equipment)	62,900		992
	HBOS plc (Banking)	340,100		6,725
	Man Group plc (Capital markets)	306,800		2,573
	Northern Rock plc (Thrift & mortgage finance)	154,700		3,382
	Reckitt Benckiser plc (Household products)	143,900		5,961
*	Rolls-Royce Group plc (Aerospace & defense)	627,000		5,314
	Rotork plc (Electronic equipment & instruments)	58,700		844
	Standard Chartered plc (Banking)	119,600		3,061
	Tesco plc (Food & staples retailing)	941,400		6,344
	Tullow Oil plc Oil, gas & consumable fuels)	97,800		692
				50,882
	Japan - 13.5%
	Aeon Mall Co., Ltd. (Real estate management & development)	27,200		1,440
	Chiyoda Corporation (Construction & engineering)	53,000		1,039
	Denso Corporation (Auto parts manufacturing)	123,200		4,337
	Honeys Company, Ltd. (Specialty retail)	17,400		890
	Hoya Corporation (Electronic equipment & instruments)	63,900		2,410
*	K.K. DaVinci Advisors (Real estate management & development)	746		716
	Keyence Corporation (Electronic equipment & instruments)	10,980		2,527
	Komatsu Ltd. (Machinery)	136,000		2,353
	MISUMI Group, Inc. (Trading companies & distributors)	35,300		605
	Mitsubishi Tokyo Financial (Financial services)	523		6,730
	Orix Corporation (Consumer finance)	26,300		7,266
	Ryohin Keikaku Co. Ltd. (Multiline retail)	10,100		715
	Sharp Corporation (Electric technology)	145,000		2,488
	Yamada Denki Co., Ltd. (Specialty retail)	14,100		1,416
				34,932

See accompnaying Notes to Portfolios of Investments

International Equity Fund

Portfolio of Investments, September, 2006 (all dollar amounts in thousands) (unaudited)

	Issuer	Shares		Value
	Common Stocks-(continued)
	Emerging Asia - 10.7%
	China - 2.9%
	China Life Insurance Co. (Insurance)		1,765,000	$	3,448
	Ctrip.com International Ltd. - ADR (Hotels, restaurants & leisure)		21,300		958
*	Focus Media Holding Ltd. - ADR (Media)		19,100		1,106
*	Foxconn International (Communications equipment)		492,000		1,513
	Hopson Development Holding Ltd. (Real estate management & development)		236,000		476
					7,501
	India - 4.1%
	Bharat Heavy Electricals Ltd. (Electrical equipment)		38,800		2,023
*	Bharti Airtel Limited (Wireless telecommunication services)		149,873		1,532
	HDFC Bank (Banking)		81,500		1,638
	Infosys Technologies Ltd. (IT services)		63,000		2,537
	Suzlon Energy Ltd. (Electrical equipment)		54,500		1,465
	Vedanta Resources Plc (Metals & mining)		66,700		1,452
					10,647
	Indonesia - 0.3%
	PT Bank Rakyat Indonesia (Banking)		1,732,000		918
	South Korea - 0.9%
	Samsung Electronics Co. (Semiconductors)		3,190		2,236
	Taiwan - 2.5%
	High Tech Computer Corp. (Computers)		83,000		2,194
*	Himax Technologies, Inc.-ADR (Semiconductors)		70,000		400
	Hon Hai Precision Industry Corp. (Electronic equipment)		640,117		3,896
					6,490
	Asia- 5.3%
	Australia -1.6%
	Allco Finance Group Limited (Capital markets)		108,500		861
	Macquarie Bank Ltd. (Capital markets)		61,900		3,191
					4,052
	Hong Kong - 2.1%
	Esprit Holdings Ltd. (Specialty retail)		265,500		2,420
	Li & Fung Ltd. (Distribution)		1,193,200		2,962
					5,382
	Singapore - 1.6%
	Capitaland, Ltd. (Real estate management & development)		1,361,000		4,316
	Emerging Latin America - 5.3%
	Brazil - 1.5%
	Companhia de Concessoes Rodoviarias (Transportation infrastructure)		89,600		865
	Gol-Linhas Aereas Inteligentes S.A. - ADR (Airlines)		38,300		1,316
	Localiza Rent a Car S.A. (Road & rail)		18,900		392
	Natura Cosmeticos S.A. (Personal products)		100,000		1,228
					3,801
	Chile - 0.5%
	Cencosud S.A. -ADR 144A (Specialty retail)		35,000		1,358
	Columbia - 0.4%
	Bancolumbia S.A. -ADR (Banking)		39,300		1,124
	Mexico - 2.9%
	America Movil S.A. (Wireless telecommunications services)		1,809,200		3,571
	Walmart de Mexico (Food & Staples retailing)		1,125,100		3,827
					7,398
	Canada- 3.7%
	Cameco Corporation (Metals and mining)		60,200	$	2,194
	Manulife Financial Corporation (Insurance)		124,400		4,006
	Shoppers Drug Mart Corporation (Food & staples retailing)		27,900		1,140
	Suncor Energy, Inc. (Oil, gas & consumable fuels)		30,800		2,210
					9,550
	Emerging Europe, Mid-East, Africa - 1.5%
	Isreal - 1.0%
	Teva Pharmaceutical Industries Ltd. - ADR (Pharmaceuticals)		74,300		2,533
	South Africa - 0.5%
	Naspers Ltd. (Media)		25,800		396
	Sasol ASA (Oil, gas & consumable fuels)		25,899		851
					1,247
	Total Common Stock -- 98.4% (cost $224,212)				254,837
	Preferred Stocks
	Brazil - 1.0%
	Banco Itau S.A. (Banking)		52,900		1,584
	Petroleo Brasileiro S.A. (Oil, gas & consumable fuels)		59,100		1,102
					2,686
	Total Preferred Stocks - 1.0% (cost $1,987)				2,686
	Investment in Affiliate
	William Blair Ready Reserves Fund		1,145,608		1,146
	Total Investment in Affiliate - 0.5% (cost $1,146)				1,146
	Short-Term Investments
	American Express Demand Note, VRN, 5.173%, due 10/02/06	$	593,000		593
	Prudential Funding Demand Note, VRN, 5.305%, due 10/02/06		772,000		772
	Total Short-Term Investments - 0.5% (cost $1,365)				1,365
	Repurchase Agreement
	Investors Bank & Trust Company, 5.16% dated 9/29/2006, due 10/02/2006, repurchase price $275, collateralized by SBA Pool #503739	$	261,838		262
	Total Repurchase Agreement - 0.1% (Cost $262)				262
	Total Investments - 100.5% (cost $228,972)				260,296
	Liabilities plus cash and other assets - (0.5%)				(1,307	)
	Net assets - 100.0%			$	258,989

* Non-income producing securities

ADR = American Depository Receipt

VRN= Variable Rate Note

For securities, primarily traded on exchanges or markets that close before the close of regular trading on the New York Stock Exchange, the Fund uses an independent pricing service on a daily basis to fair value price the securities pursuant to Valuation Procedures adopted by the Board of Trustees.

See accompanying Notes to Portfolios of Investments.

At September 30, 2006 the Fund’s Portfolio of Investments includes the following industry categories:

Financials	30.9	%
Consumer Staples	14.0	%
Consumer Discretionary	13.7	%
Information Technology	11.4	%
Healthcare	9.6	%
Industrials and Services	8.3	%
Energy	7.8	%
Telecommunication Services	2.0	%
Utilities	1.7	%
Materials	0.6	%
	100.0	%

At September 30, 2006 the Fund’s Portfolio of Investments includes the following currency categories:

Euro	28.2	%
British Pound Sterling	20.3	%
Japanese Yen	13.6	%
Swiss Franc	8.9	%
Hong Kong Dollar	4.2	%
Canadian Dollar	3.7	%
Indian Rupee	3.6	%
United States Dollar	3.4	%
Mexico Nuevo Peso	2.9	%
Taiwan Dollar	2.4	%
Brazilian Real	2.0	%
Singapore Dollar	1.7	%
Australian Dollar	1.6	%
Swedish Krona	1.4	%
Other Currencies	2.1	%
	100.0	%

See accompanying Notes to Portfolios of Investments.

International Small Cap Growth Fund

Portfolio of Investments, September 30, 2006 (all dollar amounts in thousands) (unaudited)

	Issuer	Shares	Value
	Common Stocks
	Europe - 28.0%
	France - 2.3%
	April Group S.A. (Insurance)	57,140	$	2,459
*	Orpea (Heath care providers & services)	24,300		1,844
				4,303
	Germany - 7.8%
	Bijou Brigitte (Apparel & luxury goods)	6,800		1,749
	CTS Eventim (Media)	57,900		1,886
*	Q-Cells AG (Electrical equipment)	72,480		2,961
*	Qiagen NV (Lifesciences tools & services)	187,160		2,929
	Rational AG (Household durables)	9,500		1,823
	Solarworld AG (Electrical equipment)	55,600		3,045
				14,393
	Ireland - 5.7%
	IAWS Group plc (Food products)	176,540		3,279
	Kingspan Group plc (Building products)	228,090		4,700
	United Drug plc (Heath care providers & services)	577,980		2,570
				10,549
	Italy - 4.4%
	Amplifon SpA (Heath care providers & services)	191,100		1,507
	Azimut Holdings SpA (Capital markets)	162,800		1,859
	Credito Emiliano SpA (Banking)	138,700		1,968
	Tod’s SpA (Apparel & luxury goods)	34,950		2,763
				8,097
	Spain - 1.7%
*	Grifols S.A. (Biotechnolgy)	299,500		3,035
	Sweden - 3.4%
*	Modern Times Group (Media)	86,100		4,456
*	Tradedoubler AB (Internet software & services)	90,700		1,763
				6,219
	Switzerland - 2.7%
*	EFG International (Capital markets)	91,700		3,011
*	Partners Group (Capital markets)	23,150		1,988
				4,999
	Japan - 20.7%
	Aeon Mall Co., Ltd. (Real estate management & development)	69,600		3,684
	Chiyoda Corp. (Construction & engineering)	127,000		2,489
	Honeys Company, Ltd. (Specialty retail)	33,500		1,714
	ITO EN, Ltd. (Beverages)	49,500		1,705
	Joint Corporation (Real estate management & development)	94,820		3,252
*	K.K. DaVinci Advisors (Real estate management & development)	3,444		3,304
	Kenedix, Inc. (Real estate management & development)	550		3,076
	MISUMI Group, Inc. (Trading companies & distributors)	131,200		2,248
	Nakanishi Inc. (Health care equipment & supplies)	21,900		2,885
	Nitori Company Ltd. (Specialty retail)	51,100		2,311
	Park 24 Co., Ltd. (Commercial services & supplies)	87,700		2,884
	Ryohin Keikaku Co. Ltd. (Multiline retail)	32,600		2,308
	Sparx Asset Management Co. Ltd. (Capital markets)	3,230		2,988
	Suruga Bank (Banking)	254,000		3,175
				38,023
	United Kingdom - 14.8%
	Accident Exchange Group plc (Commercial services & supplies)	288,500		1,831
*	Ceres Power Holdings plc (Electrical equipment)	330,700		1,531
*	CSR plc (Communications equipment)	164,230		2,591
	Homeserve plc (Commercial services & supplies)	86,380		2,687
	Mears Group plc (Construction & engineering)	359,800		1,812
	Michael Page International (Commercial services & supplies)	548,920		3,951
	Rotork plc (Electronic equipement & instruments)	141,200		2,030
	RPS Group plc (Commercial services & supplies)	386,300		1,654
	Serco Group plc (Commercial services & supplies)	545,340		3,839
	Ultra Electronic Holdings plc (Aerospace & defense)	98,200		1,934
	Victrex plc (Chemicals)	112,900		1,674
	VT Group plc (Aerospace & defense)	195,400		1,770
				27,304
	Emerging Asia - 10.1%
	China - 5.0%
	Ctrip.com International, Ltd. - ADR (Hotels, restaurants & leisure)	53,720		2,415
*	Focus Media Holdings - ADR (Media)	41,700		2,415
	Li Ning Co. Ltd. (Leisure equipment and products)	1,464,873		1,671
	Ports Design Limited (Apparel and luxury goods)	592,500		912
*	Suntech Power Holdings Co. Ltd - ADR (Electrical equipment)	67,900		1,754
				9,167
	India - 2.3%
	Financial Technologies, Ltd. (Diversified financial services)	49,500		1,860
*	Inox Leisure, Ltd. (Media)	319,000		1,050
	Pantaloon Retail India, Ltd. (Multiline retail)	31,170		1,278
				4,188

See accompanying Notes to Portfolios of Investments.

	Issuer	Shares or Principal Amount		Value
	Common Stocks-(continued)
	Emerging Asia - 10.1% - (continued)
	Malaysia - 0.4%
	Transmile Group Bhd (Air freight & logistics)		231,000		727
	South Korea - 0.5%
	Hana Tour Service Inc. (Hotels, restaurants & leisure)		12,500		885
	Taiwan - 1.9%
	Largan Precision Company, Ltd.(Leisure equipment & products)		171,300		3,505
	Asia - 8.7%
	Australia - 5.9%
	Allco Finance Group Limited (Capital markets)		375,020		2,974
	Seek Limited (Commercial services & supplies)		674,780		2,537
	United Group, Ltd. (Construction & engineering)		242,370		2,564
	WorleyParsons, Ltd. (Energy equipment & supplies)		222,020		2,783
					10,858
	Singapore - 2.8%
	Goodpack Ltd. (Air freight and logistics)		1,489,000		1,610
	Osim International Ltd. (Specialty retail)		1,597,400		1,890
	Raffles Education Corp. Ltd. (Diversifed consumer services)		1,062,000		1,698
					5,198
	Emerging Latin America - 5.7%
	Brazil - 4.7%
	Cyrela Brazil Realty S.A. (Household durables)		212,200		3,610
	Submarino S.A.(Internet & catalog retail)		118,900		2,313
*	Totvs S.A. ( Software)		145,400		2,745
					8,668
	Mexico - 1.0%
*	Urbi Desarrollos Urbanos S.A. (Household durables)		661,100		1,861
	Emerging Europe, Mid-East, Africa - 2.7%
	Czech Republic - 1.1%
*	Central European Media Enterprises Ltd., Class “A” (Media) +		29,000		1,945
	Russia - 0.9%
*	CTC Media, Inc. (Media) +		77,238		1,723
	South Africa - 0.7%
*	Aspen Pharmacare (Pharmaceuticals)		305,800		1,367
	Canada - 1.9%
*	Gildan Activewear, Inc. (Apparel and luxury goods)		34,900		1,697
	Richie Bros. Auctioneers Incorporated + (Commercial services & supplies)		32,300		1,731
					3,428
	Total Common Stock — 92.6% (cost $160,328)				170,442
	Investment in Affiliate
	William Blair Ready Reserves Fund		224,522		225
	Total Investment in Affiliate - 0.1% (cost $225)
	Short-Term Investments
	American Express Demand Note, VRN 5.173%, due 10/2/06	$	1,382,000		1,382
	Prudential Funding Demand Note, VRN 5.305%, due 10/2/06		1,297,000		1,297
	Total Short-term Investments - 1.5% (cost $2,679)				2,679
	Repurchase Agreement
	Investors Bank & Trust Company, 5.16% dated 9/29/2006, due 10/02/2006, repurchase price $5,454, collateralized by SBA Pool # 505976	$	5,194,453		5,194
	Total Repurchase Agreement - 2.8% (cost $5,194)				5,194
	Total Investments - 97.0% (cost $168,426)				178,540
	Cash and other assets, less liabilities - 3.0%				5,484
	Net assets - 100.0%			$	184,024

* Non-income producing securities

ADR = American Depository Receipt

GDR = Global Depository Receipt

VRN = Variable Rate Note

+ = U.S. listed foreign security

For securities, primarily traded on exchanges or markets that close before the close of regular trading on the New York Stock Exchange the Fund uses an independent pricing service on a daily basis to fair value price the securities pursuant to Valuation Procedures adopted by the Board of Trustees.

See accompanying Notes to Portfolios of Investments.

International Small Cap Growth Fund

Portfolio of Investments, September 30, 2006 (all dollar amounts in thousands) (unaudited)

At September 30, 2006 the Fund’s Portfolio of Investments includes the following industry categories:

Consumer Discretionary	33.7	%
Industrials and Services	28.0	%
Financials	19.0	%
Healthcare	9.5	%
Information Technology	4.3	%
Consumer Staples	2.9	%
Energy	1.6	%
Materials	1.0	%
	100.0	%

At September 30, 2006 the Fund’s Portfolio of Investments includes the following currency categories:

Euro	23.7	%
Japanese Yen	22.3	%
British Pound Sterling	16.0	%
United States Dollar	7.0	%
Australian Dollar	6.4	%
Brazilian Real	5.1	%
Swedish Krona	3.7	%
Signapore Dollar	3.1	%
Swiss Franc	2.9	%
Indian Rupee	2.5	%
New Taiwan Dollar	2.1	%
Hong Kong Dollar	1.5	%
Mexican Neuvo Peso	1.1	%
Canadian Dollar	1.0	%
All other currencies	1.6	%
	100.0	%

See accompanying Notes to Portfolios of Investments.

Emerging Markets Growth Fund

Portfolio of Investments, September 30, 2006 (all dollar amounts in thousands) (unaudited)

	Issuer	Shares	Value
	Common Stocks - Emerging Asia - 55.6%
	China - 17.8%
	China Life Insurance Co. (Insurance)	9,869,100	$	19,282
	China Mengniu Dairy Co. Ltd. (Food products)	5,946,000		9,955
	China Vanke Company Ltd. (Real estate management/development)	11,423,500		12,022
	Ctrip.com International Ltd. - ADR (Hotels, restaurants, and leisure)	123,100		5,533
*	Focus Media Holding Ltd. - ADR (Media)	101,600		5,885
*	Foxconn International (Communications Equipment)	5,253,000		16,157
	Fu Ji Food and Catering Services Holdings Ltd (Hotels, restaurants, and leisure)	1,542,000		2,577
	Hopson Development Holdings Ltd. (Real estate management)	1,312,000		2,646
	Lee and Man Paper Manufacturing Ltd. (Containers and packaging)	5,014,000		9,396
	Li Ning Co. Ltd (Leisure equipment and products)	5,884,000		6,713
	Parkson Retail Group Ltd. (Multiline retail)	1,882,400		6,964
	Ports Design Ltd. (Apparel and luxury goods)	1,921,500		2,958
*	Suntech Power Holdings Co. Ltd - ADR (Electrical equipment)	214,700		5,546
	Wumart Stores, Inc., Class “H” (Food and staples retailing)	1,974,000		6,839
				112,473
	India - 19.6%
	Bharat Heavy Electricals, Ltd. (Electrical equipment)	381,500		19,886
*	Bharti Airtel Ltd. (Wireless telecommunication services)	1,869,700		19,114
	Dabur India Ltd. (Personal products)	951,500		2,830
	Financial Technologies, Ltd. (Diversified financial services)	88,210		3,314
	HDFC Bank (Banking)	170,900		3,435
	Hindustan Lever Ltd. (Household products)	2,227,300		12,480
	Housing Development Finance Corp. (Thrifts and mortgage finance)	105,600		3,521
	Infosys Technologies, Ltd. (IT services)	488,000		19,650
*	Inox Leisure Ltd. (Media)	1,036,600		3,411
	Maruti Udyog Ltd. (Automobiles)	506,500		10,803
	Pantaloon Retail India Ltd. (Multiline retail)	73,400		3,010
	Shopper’s Stop Ltd. (Multiline retail)	274,500		3,454
	Suzlon Energy Ltd. (Electrical equipment)	506,500		13,619
	Vedanta Resources Plc (Metals and mining)	246,200		5,360
				123,887
	Indonesia - 1.5%
	PT Bank Rakyat Indonesia (Banking)	12,361,500		6,551
*	PT Kalbe Farma Tbk (Pharmaceuticals)	19,186,000		2,743
				9,294
	Malaysia - 1.6%
	Bumiputra Commerce Holding Bhd (Banking)	3,141,000		5,659
	Transmile Group Bhd (Air freight and logisitics)	1,494,300		4,702
				10,361
	South Korea - 6.1%
	Hana Tour Service (Hotels, restaurants, and leisure)	44,000		3,115
	Kookmin Bank (Banking)	64,700		5,067
*	NHN Corporation (Internet software and services)	49,500		5,184
	Samsung Electronics Co. (Semiconductors)	28,060		19,672
	Shinsegae Co. Ltd. (Food and staples retailing)	11,070		5,730
				38,768
	Taiwan - 9.0%
	High Tech Computer Corporation (Computers)	497,800	$	13,160
	Hon Hai Precision Industry (Electronic equipment and instruments)	2,953,528		17,976
*	Himax Technologies, Inc. - ADR (Semiconductors)	1,440,300		8,224
	Largan Precision Co. Ltd. (Leisure equipment and products)	574,550		11,755
	Mediatek Inc. (Semiconductors)	627,040		5,938
				57,053
	Emerging Latin America - 26.5%
	Brazil - 10.3%
	Companhia de Concessoes Rodoviarias (Transportation infrastructure)	327,300		3,161
	Cyrela Brazil Realty S.A. (Household durables)	845,200		14,379
*	Diagnosticos da America S.A. (Health care providers and services)	64,100		1,203
	Gol Linhas Aereas Int S.P - ADR (Airlines)	348,600		11,974
	Localiza Rent a Car S.A. (Road and rail)	580,200		12,035
	Lojas Renner S.A. (Multiline retail)	60,000		3,477
	Natura Cosmeticos S.A. (Personal products)	527,600		6,479
	Submarino S.A. (Internet and catalog retail)	293,500		5,710
*	Totvs S.A. (Software)	343,000		6,476
				64,894
	Chile - 3.4%
*	Cencosud S.A. -ADR 144A (Specialty retail)	274,300		10,641
	S.A.C.I. Falabella S.A. (Multiline retail)	3,536,694		10,906
				21,547
	Columbia - 1.8%
	Bancolombia S.A. - ADR (Banking)	408,600	$	11,686
	Mexico - 9.8%
	America Movil S.A. (Wireless telecommunication services)	9,632,100		19,012
*	Corporacion Geo Sa De Cv (Household durables)	1,597,900		6,722
*	Desarrolladora Homex S.A. de C.V. - ADR (Household durables)	155,400		5,868
	Grupo Aeropuertario Del ADR (Transportation infrastructure)	177,100		6,021
*	Urbi Desarrollos Urbanos S.A. (Household durables)	2,322,900		6,539
	Walmart de Mexico (Food and staples retailing)	5,240,600		17,828
				61,990
	Panama - 1.2%
	Copa Holdings S.A., Class “A” (Airlines)+	219,200		7,525

See accompanying Notes to Portfolios of Investments.

Emerging Markets Growth Fund

Portfolio of Investments, June 30, 2006 (all dollar amounts in thousands) (unaudited)

	Issuer	Shares or Principal Amount		Value
	Emerging Europe, Mid-East, Africa - 9.9%
	Czech Republic - 1.0%
*	Central European Media Enterprises Ltd., Class “A” (Media)+		94,600		6,343
	Israel - 0.7%
	Teva Pharmaceutical Industries, Ltd. - ADR (Pharmaceuticals)		138,100		4,708
	Russia - 3.9%
*	CTC Media, Inc. (Media)+		320,145		7,139
*	Magnit - CLS (Multiline retail)+		94,000		3,088
	Novatek OAO - GDR 144A (Oil, gas, and consumable fuels)		286,300		14,243
					24,470
	South Africa - 3.1%
*	Aspen Pharmacare Holdings Ltd. (Pharmaceuticals)		966,700		4,321
	BHP Billiton Plc (Metals and mining)		305,500		5,238
	Naspers Ltd. (Media)		300,190		4,610
	Sasol Ltd. (Oil, gas, and consumable fuels)		156,900		5,157
					19,326
	Turkey - 1.2%
	Bim Birlesik Magazalar A.S. (Food and staples retailing)		198,100		7,456
	Europe - 0.8%
	United Kingdom - 0.8%
*	Cairn Energy plc (Oil, gas, and consumable fuels)		151,600		5,295
	Total Common Stock - 92.8% (cost $505,827)		587,076		587076
	Preferred Stock
	Brazil - 4.5%
	Banco Itau Holding (Banking)		611,300		18,303
	Petroleo Brasileiro S.A. (Oil, gas and consumable fuels)		562,100		10,480
	Total Preferred Stock - 4.5% (cost $25,532)				28,783
	Investment in Affiliate
	William Blair Ready Reserves Fund		2,241,675		2,242
	Total Investment in Affiliate - 0.4% (cost $2,242)				2,242
	Short-Term Investments
	American Express Demand Note, VRN 5.175% due 10/2/06	$	300,000		300
	Prudential Funding Demand Note, VRN 5.305% due 10/2/06		3,340,000		3,340
	Total Short-Term Investments - 0.6% (cost $3,640)				3,640
	Repurchase Agreement
	Investors Bank & Trust Company, 5.16% dated 9/29/2006, due 10/02/2006, repurchase price $10,755, collateralized by FN, Pool# 759255	$	10,242,470		10,242
	Total Repurchase Agreement - 1.6% (cost $10,242)				10,242
	Total Investments - 99.9% (cost $547,483)				631,983
	Cash and other assets, less liabilities - 0.1%				837
	Net assets - 100.0%			$	632,820

* Non-income producing securities

ADR = American Depository Receipt

GDR = Global Depository Receipt

VRN = Variable Rate Note

+ = U.S. listed Foreign Security

For securities, primarily traded on exchanges or markets that close before the close of regular trading on the New York Stock Exchange the Fund uses an independent pricing service on a daily basis to fair value price the securities pursuant to Valuation Procedures adopted by the Board of Trustees.

See accompanying Notes to Portfolios of Investments.

Emerging Markets Growth Fund

Portfolio of Investments, September 30, 2006 (all dollar amounts in thousands) (unaudited)

At September 30, 2006 the Fund’s Portfolio of Investments includes the following industry categories:

Consumer Discretionary	24.6	%
Information Technology	18.3	%
Finance	14.9	%
Industrials	13.7	%
Consumer Staples	11.3	%
Telecommunication Services	6.2	%
Energy	5.7	%
Materials	3.2	%
Health Care	2.1	%
	100.0	%

At September 30, 2006 the Fund’s Portfolio of Investments includes the following currency categories:

Indian Rupee	19.3	%
United States Dollar	18.6	%
Hong Kong Dollar	15.5	%
Brazilian Real	13.3	%
Mexico Nuevo Peso	8.1	%
Taiwan Dollar	7.9	%
South Korean Won	6.3	%
South African Rand	3.1	%
Chilean Peso	1.8	%
British Pound Sterling	1.7	%
Malaysian Ringgit	1.7	%
Indonesian Rupiah	1.5	%
Turkish Lira	1.2	%
	100.0	%

See accompanying Notes to Portfolio of Investments.

Value Discovery Fund

Portfolio of Investments, September 30, 2006 (all dollar amounts in thousands) (unaudited)

	Issuer	Shares		Value
	Common Stocks
	Financials - 32.5%
*	Argonaut Group, Inc.		58,320	$	1,810
	Astoria Financial Corporation		34,905		1,076
	Chittenden Corporation		37,865		1,086
	Citizens Banking Corporation		75,730		1,989
	Cogdell Spencer, Inc.		70,715		1,467
*	Community Bancorp		43,340		1,322
*	CompuCredit Corporation		46,000		1,390
	Donegal Group, Inc., Class “A”		57,336		1,159
	Equity Inns, Inc.		154,179		2,455
	First Midwest Bancorp Incorporated		60,900		2,307
	FirstMerit Corporation		84,935		1,968
	Jones Lang LaSalle, Inc		19,090		1,632
	Kite Realty Group Trust		95,050		1,620
	Mid-American Apartment Communities, Inc.		26,465		1,620
	Midwest Banc Holdings, Inc.		103,177		2,519
*	RAM Holdings, Ltd. +		127,140		1,653
*	Trammell Crow Company		38,770		1,415
	Umpqua Holdings Corporation		83,030		2,375
*	Western Alliance Bancorp		32,700		1,076
	Winston Hotels, Inc.		151,610		1,868
					33,807
	Consumer Discretionary - 17.3%
*	Aeropostale, Inc.		43,540		1,273
*	AFC Enterprises, Inc.		95,050		1,373
	Ameristar Casinos, Inc.		55,660		1,208
	BorgWarner, Inc.		20,150		1,152
*	Casual Male Retail Group, Inc.		87,920		1,207
*	Charming Shoppes, Inc.		89,980		1,285
	Christopher & Banks Corporation		43,995		1,297
	Entercom Communications Corporation		44,485		1,121
*	Interface Incorporated, Class “A”		227,880		2,935
*	Rent A Center, Inc.		44,374		1,300
	Ruby Tuesday, Inc.		48,360		1,363
	Wolverine World Wide, Inc.		89,485		2,533
					18,047
	Information Technology - 15.5%
	Adtran Incorporated		48,660		1,160
*	Anixter International, Inc.		32,700		1,847
*	Bisys Group, Inc.		124,090		1,348
*	Entegris, Inc.		187,665		2,048
*	Mastec Incorporated		103,180		1,142
*	MICROS Systems, Inc.		33,230		1,626
*	Parametric Technology Corporation		121,430		2,120
*	Progress Software Corporation		45,245		1,176
*	Semitool, Inc.		183,404		1,896
*	Sybase, Inc.		74,055		1,795
					16,158
	Industrials - 12.1%
	Acuity Brands, Inc.		46,455		2,109
*	EMCOR Group, Inc.		29,130		1,598
*	Esco Technologies, Inc.		22,175		1,021
*	Genlyte Group, Inc.		15,885		1,131
*	Labor Ready, Inc.		70,715		1,126
*	Saia, Inc.		34,300		1,118
	Tal International Group, Inc.		60,975		1,293
*	Teletech Holdings, Inc.		76,640		1,198
	Watsco, Inc.		43,640		2,008
					12,602
	Issuer	Shares or Principal Amount		Value
	Common Stocks (Continued)
	Materials - 6.4%
	Arch Chemicals, Inc.		49,045	$	1,395
	Silgan Holdings, Inc.		45,700		1,717
	Spartech Corporation		73,220		1,960
	Texas Industries, Inc.		29,660		1,544
					6,616
	Energy - 4.8%
*	Forest Oil Corporation		35,130		1,110
*	Goodrich Petroleum Corporation		40,675		1,225
*	Petrohawk Energy Corporation		99,313		1,031
	RPC, Inc.		49,885		914
	St. Mary Land & Exploration Company		19,570		718
					4,998
	Utilities - 4.4%
	Avista Corp		48,660		1,152
	Cleco Corporation		44,025		1,111
	Northwest Natural Gas Company		28,510		1,120
	South Jersey Industries, Inc.		38,400		1,149
					4,532
	Health Care - 4.2%
*	Magellan Health Services		34,065		1,451
*	Pediatrix Medical Group		30,265		1,380
	Vital Signs, Inc.		26,690		1,511
					4,342
	Consumer Staples - 2.2%
*	Playtex Products, Inc.		170,365		2,283
	Total Common Stock - 99.4% (cost $95,303)				103,385
	Investment in Affiliate
	William Blair Ready Reserves Fund		870,582		871
	Total Investment in Affiliate - 0.8% (cost $871)				871
	Short-Term Investment
	Prudential Funding Demand Note, VRN 5.305%, due 10/2/06	$	500,000		500
	Total Short-Term Investment - 0.5% (cost $500)				500
	Total Investments - 100.7% (cost $96,674)				104,756
	Liabilities, plus cash and other assets - (0.7)%				(729	)
	Net assets - 100.0%			$	104,027

* Non-income producing

+ =U.S. listed foreign security

VRN = Variable Rate Note

See accompanying Notes to Portfolios of Investments.

Income Fund

Portfolio of Investments, September 30, 2006 (all amounts in thousands) (unaudited)

	Principal Amount		Value
U.S. Government and U.S. Government Agency - 50.8%
U.S. Treasury - 4.8%
U.S. Treasury Note, 6.500%, due 2/15/10	$	12,000	$	12,696
U.S. Treasury Note, 4.750%, due 5/15/14		2,000		2,017
Total U.S. Treasury Obligations		14,000		14,713
Government National Mortgage Association (GNMA)- 1.8%
#780405, 9.500%, due 11/15/17		642		685
#589335, 6.500%, due 10/15/22		2,113		2,167
#357322, 7.000%, due 9/15/23		173		179
#616250, 6.000%, due 2/15/24		1,594		1,617
#2002-48, Tranche 0B, 6.000%, due 5/16/30		755		757
Total Government National Mortage Association		5,277		5,405
Small Business Administration - 0.0%
Receipt for Multiple Originator Fees, #3, 0.821%, due 11/01/08 (Interest Only) WAC		—		22
Federal Home Loan Mortgage Corp. (FHLMC) - 19.2%
#1417, Tranche SA, 11.720%, due 11/15/07, VRN		397		400
#G10067, 7.000%, due 1/1/08		211		212
#G10147, 8.500%, due 2/1/08		27		27
#1601, Tranche PJ, 6.000%, due 10/15/08, VRN		943		943
#1612, Tranche SE, 8.100%, due 11/15/08, VRN		481		492
#G90028, 7.000%, due 5/17/09		280		281
#E80050, 6.000%, due 10/1/09		494		494
#G90019, 7.500%, due 12/17/09		354		357
7.000%, due 3/15/10		5,950		6,336
#E65418, 7.000%, due 8/1/10		225		226
#G10457, 7.000%, due 2/1/11		425		432
#E00436, 7.000%, due 6/1/11		422		430
#G10708, 6.500%, due 8/1/12		247		252
#E91999, 5.000%, due 10/1/12		1,018		1,012
#G11218, 7.000%, due 10/1/12		111		113
#E96147, 5.000%, due 5/1/13		1,333		1,325
#E95846, 4.500%, due 5/1/13		1,246		1,220
#G10839, 5.500%, due 10/1/13		1,229		1,234
#E72924, 7.000%, due 10/1/13		1,105		1,130
#E00639, 5.000%, due 3/1/14		1,758		1,737
#J02572, 7.500%, due 6/1/14		1,943		2,005
#E81697, 8.000%, due 5/1/15		2,377		2,505
#E81703, 7.000%, due 5/1/15		955		981
#E81908, 8.500%, due 12/1/15		121		128
#G11688, 7.000%, due 2/1/16		772		792
#J02184, 8.000%, due 4/1/16		1,818		1,908
#G12258, 6.000%, due 8/15/16		2,725		2,765
#G90022, 8.000%, due 9/17/16		688		721
#G11702, 7.500%, due 12/1/16		760		787
#G11486, 7.500%, due 4/1/17		957		991
#E90398, 7.000%, due 5/1/17		1,313		1,346
#M30028, 5.500%, due 5/1/17		343		348
#G11549, 7.000%, due 7/1/17		788		809
#G90027, 6.000%, due 11/17/17		1,300		1,316
#G11756, 7.000%, due 12/1/17		1,410		1,437
#G11725, 5.500%, due 11/1/18		2,204		2,208
#G30254, 6.500%, due 5/1/19		2,593		2,668
#G30255, 7.000%, due 7/1/21		944		978
#G30268, 7.000%, due 7/1/21		1,883		1,947
#J02986, 6.500%, due 7/1/21		2,802		2,859
#G30239, 7.000%, due 8/1/21		1,697		1,756
#C67537, 9.500%, due 8/1/21		210		224
#G30243, 6.000%, due 12/1/21		1,869		1,900
#D95621, 6.500%, due 7/1/22	$	3,150	$	3,234
#G02183, 6.500%, due 3/1/30		2,033		2,084
#A45790, 7.500%, due 5/1/35		1,093		1,132
Total FHLMC Mortgage Obligations		57,004		58,482
Federal National Mortgage Association (FNMA) - 25.0%
#545560, 8.000%, due 5/1/07		145		146
#1992-192, Tranche SC, 6.390%, due 11/25/07, VRN		176		177
#93-196, Tranche SA, 10.600%, due 10/25/08, VRN		335		350
#1993-221, Tranche SG, 3.624%, due 12/25/08, VRN		264		261
#765396, 5.500%, due 1/1/09		228		228
#695512, 8.000%, due 9/1/10		399		408
#725479, 8.500%, due 10/1/10		694		710
#255056, 5.000%, due 12/1/10		1,783		1,771
6.250%, due 2/1/11		6,775		7,084
#313816, 6.000%, due 4/1/11		503		506
#577393, 10.000%, due 6/1/11		227		242
#577395, 10.000%, due 8/1/11		851		912
#254705, 5.500%, due 3/1/13		1,731		1,737
#254788, 6.500%, due 4/1/13		632		647
#725315, 8.000%, due 5/1/13		725		754
#190539, 6.000%, due 1/1/14		458		465
#806463, 7.000%, due 3/1/14		740		761
#593561, 9.500%, due 8/1/14		395		423
#567027, 7.000%, due 9/1/14		1,770		1,823
#567026, 6.500%, due 10/1/14		1,663		1,701
#458124, 7.000%, due 12/15/14		433		443
#576554, 8.000%, due 1/1/16		1,711		1,799
#745459, 7.000%, due 2/1/15		997		1,025
#598453, 7.000%, due 6/1/15		426		432
#576553, 8.000%, due 2/1/16		2,644		2,800
#555747, 8.000%, due 5/1/16		541		562
#735569, 8.000%, due 10/1/16		2,731		2,840
#725410, 7.500%, due 4/1/17		1,699		1,761
#643217, 6.500%, due 6/1/17		384		393
#679247, 7.000%, due 8/1/17		2,134		2,211
#682075, 5.500%, due 11/1/17		1,107		1,110
#662925, 6.000%, due 12/1/17		1,587		1,615
#251960, 6.000%, due 9/1/18		629		640
#740847, 6.000%, due 10/1/18		1,410		1,432
#852864, 7.000%, due 7/1/20		3,636		3,736
#458147, 10.000%, due 8/15/20		1,021		1,139
#835563, 7.000%, due 10/1/20		1,396		1,446
#893325, 7.000%, due 9/1/21		3,489		3,581
#735367, 6.000%, due 3/1/22		2,650		2,692
#735574, 8.000%, due 3/1/22		1,036		1,099
#735104, 7.000%, due 5/1/22		2,706		2,804
#725927, 7.000%, due 8/1/22		2,133		2,208
#679253, 6.000%, 10/1/22		2,042		2,074
#735137, 6.500%, due 11/1/22		1,380		1,420
#1993-19, Tranche SH, 11.234%, due 4/25/23, VRN		11		14
#254797, 5.000%, due 6/1/23		2,590		2,520
#745633, 6.500%, due 7/1/24		3,200		3,286
#806458, 8.000%, due 6/1/28		1,504		1,591
#880155, 8.500%, due 7/1/29		1,743		1,873
#797846, 7.000%, due 3/1/32		2,119		2,179
#745519, 8.500%, due 5/1/32		1,231		1,322
#654674, 6.500%, due 9/1/32		348		356
#733897, 6.500%, due 12/1/32		546		560
Total FNMA Mortgage Obligations		73,708		76,069

See accompanying Notes to Portfolios of Investments.

Income Fund

Portfolio of Investments, September 30, 2006 (all amounts in thousands) (unaudited)

	NRSRO Rating	Principal Amount		Value
Collateralized Mortgage Obligations - 24.4%
Countrywide Alternative Loan Trust, 2003-11T1, Tranche M,
4.750%, due 7/25/18	AA+		1,795		1,748
ABFS, 2002-2, Tranche A6,
5.850%, due 3/15/19	AAA		806		805
RALI, 2004-QS16, Tranche 2M1,
5.000%, due 12/25/19	AA		1,698		1,654
RALI, 2004-QS16, Tranche 2M3,
5.000%, due 12/25/19	BBB		287		270
RALI, 2005-QS14, Tranche 1M1,
5.250%, due 9/25/20	AA		994		976
RALI, 2005-QS14, Tranche 1M2,
5.250%, due 9/25/20	A		313		302
RALI, 2006-QS2, Tranche 2M1,
5.500%, due 2/25/21	AA		1,096		1,087
RALI, 2006-QS2, Tranche 2M2,
5.500%, due 2/25/21	A		512		501
RALI, 2006-QS6, Tranche 2M1,
6.000%, due 6/25/21	AA		534		541
RALI, 2006-QS6, Tranche 2M2,
6.000%, due 6/25/21	A		422		421
First Plus, 1997-4, Tranche M1,
7.640%, due 9/11/23	AA		1,858		1,890
First Plus, 1997-4, Tranche M2,
7.830%, due 9/11/23	A		392		395
First Plus, 1997-4, Tranche A8,
7.810%, due 9/11/23	AAA		232		240
First Plus, 1998-2, Tranche M2,
8.010%, due 5/10/24	A		237		239
First Plus, 1998-3, Tranche M2,
7.920%, due 5/10/24, VRN	A		652		660
Bear Stearns ABS, 2001-A, Tranche M1,
7.540%, due 2/15/31	AA		1,482		1,487
Delta Funding Home Equity Loan Trust, 2000-4, Tranche M1,
7.150%, due 2/15/31	AA		2,591		2,585
Structured Asset Securities Corp., 2005-SC1, Tranche 1A2,
10.108%, due 5/25/31, VRN*	AAA		2,451		2,632
Aames Mortgage Trust, 2001-1, Tranche M2,
7.588%, due 6/25/31	A		1,216		1,230
Conseco Finance, 2001-B, Tranche 1M1
7.272%, due 6/15/32	AA		893		897
Security National Mortgage Loan Trust, 2004-1A, Tranche M2,
6.750%, due 06/25/32*	A		1,600		1,616
Structured Assets Security Corporation, 2002-13, Tranche B1,
6.750%, due 7/25/32, VRN	AAA		2,660		2,660
Structured Assets Security Corporation, 2002-17, Tranche B3,
6.087%, due 9/25/32, VRN	A		1,863		1,847
LSSCO, 2004-2, Tranche M1,
6.251%, due 2/28/33, VRN*	AA		1,248		1,245
LSSCO, 2004-2, Tranche M2,
6.251%, due 2/28/33, VRN*	A		957		950
ABFS, 2002-2, Tranche A-7,
5.215%, due 7/15/33, VRN	AAA		112		112
ABFS, 2002-3, Tranche M1,
5.402%, due 9/15/33, VRN	AA		1,500		1,488
Residential Asset Mortgage Prouducts, 2003-RS9, Tranche MI1,
5.800%, due 10/25/33	AA		310		307
Residential Asset Mortgage Prouducts, 2003-RS9, Tranche MI2,
6.300%, due 10/25/33	A		2,200		2,194
ACE, 2004-SD1, Tranche M3,
8.080%, due 11/25/33, VRN	BBB		2,099		2,052
Residential Asset Mortgage Products, 2003-RS11, Tranche MI1,
5.597%, due 12/25/33	AA		2,400		2,391
Deutsche Mortgage Securites, Inc., 2004-2, Tranche M1,
5.090%, due 1/25/34	AA	$	2,055	$	2,029
GRP Real Estate Asset Trust, 2004-2, Tranche A,
4.210%, due 7/25/34*	A		173		173
FHASI, 2004-AR4, Tranche 3A1,
4.584%, due 8/25/34, VRN	AAA		1,562		1,539
RAAC, 2005-SP1, Tranche M1,
5.505%, due 9/25/34, VRN	AA		2,603		2,527
Security National Mortgage Loan Trust, 2004-2A, Tranche M2,
6.352%, due 11/25/34*	A		2,200		2,138
GRP Real Estate Asset Trust, 2005-1 Tranche A,
4.850%, due 1/25/35*	A		556		551
Security National Mortgage Loan Trust, 2005-1A, Tranche M2,
6.530%, due 2/25/35*	A		1,475		1,464
Security National Mortgage Loan Trust, 2005-1A, Tranche B1,
7.450%, due 2/25/35*	BBB		950		929
ACE, 2005-SL1, Tranche M6,
6.360%, due 6/25/35	BBB		1,843		1,824
Structured Asset Securities Corp., 2005-9XS, Tranche 1A2B,
6.500%, due 6/25/35	AAA		3,435		3,444
SACO, 2005-WM2, Tranche B2,
6.500%, due 7/25/35	BBB		3,017		2,971
ACE, 2006-SL2, Tranche M6A,
6.530%, due 1/25/36	A-		2,355		2,370
Security National Mortgage Loan Trust, 2005-2A, Tranche B1,
7.750%, due 2/25/36*	BBB		1,550		1,505
Security National Mortgage Loan Trust, 2005-2A, Tranche M2,
7.321%, due 2/25/36*	A		2,075		2,054
ACE, 2006-SL4, Tranche M6,
6.500%, due 9/25/36	A		2,100		2,109
Security National Mortgage Loan Trust, 2006-1A, Tranche M2,
7.500%, due 9/25/36*	A		2,195		2,185
Security National Mortgage Loan Trust, 2006-2A, Tranche M2,
7.500%, due 10/25/36*	A		600		598
Blackrock Capital Finance, 1997-R1 WAC,
7.539%, due 3/25/37, VRN*	AAA		385		371
Statewide Mortgage Loan Trust, 2006-1A, Tranche A2,
7.660%, due 7/25/37*	AAA		2,638		2,755
ACE, 2005-SN1, Tranche M1,
5.520%, due 11/25/39, VRN	AA+		1,075		1,059
ACE, 2005-SN1, Tranche M2,
5.770%, due 11/25/39, VRN	A+		625		617
ACE, 2005-SD3, Tranche M2,
7.080%, due 8/25/45, VRN	A+		1,895		1,909
Total Collateralized Mortgage Obligations			74,772		74,543
Corporate Obligations - 24.4%
Applied Materials, Inc.,
6.750%, due 10/15/07	A-		1,875		1,897
DaimlerChrysler NA Holdings,
4.750%, due 1/15/08	BBB		2,675		2,649
Philips Petroleum,
8.750%, due 5/25/10	A-		3,600		4,020
Residential Capital Corporation,
6.375%, due 6/30/10	BBB-		3,000		3,035
HSBC Finance Corporation,
8.000%, due 7/15/10	AA-		2,450		2,677
Boeing Capital Corporation,
7.375%, due 9/27/10	A		2,549		2,748
Goldman Sachs Group, Inc.,
6.600%, due 1/15/12	A+		3,050		3,218
Lehman Brothers Holdings, Inc.
6.625%, due 1/18/12	A+		2,650		2,810
National Rural Utility Cooperative,
7.250%, due 3/1/12	A		3,025		3,307
Valero Energy Corporation,
6.875%, due 4/15/12	BBB		2,065		2,198

See accompanying Notes to Portfolios of Investments.

Income Fund

Portfolio of Investments, September 30, 2006 (all amounts in thousands) (unaudited)

Principal Amount	NRSRO Rating	Principal Amount		Value
Corporate Obligations - (continued)
General Electric Capital Corporation,
6.000%, due 6/15/12	AAA	$	2,650	$	2,753
Citigroup, Inc.,
5.625%, due 8/27/12	A+		2,675		2,724
SLM Corporation,
5.125%, due 8/27/12	A		2,050		2,021
Cox Communications, Inc.,
7.125%, due 10/1/12	BBB-		2,425		2,584
Kroger Company,
5.500%, due 2/1/13	BBB		3,000		2,957
Ohio Power Company,
5.500%, due 2/15/13	A3		1,900		1,900
American Movil SA,
5.500%, due 3/1/14	A3		3,000		2,919
Bank of America Corporation,
5.375%, due 6/15/14	AA-		2,325		2,335
SBC Communications, Inc.,
5.100%, due 9/15/14	A		2,500		2,415
Codelco, Inc. - 144A,
4.750%, due 10/15/14*	A		2,815		2,656
United Technologies Corporation,
4.875%, due 5/1/15	A+	$	2,725	$	2,643
Fortune Brands, Inc.,
5.375%, due 1/15/16	BBB		3,060		2,919
Johnson Controls, Inc.,
5.500%, due 1/15/16	A-		2,925		2,858
Omnicom Group, Inc.,
5.900%, due 4/15/16	A-		3,000		3,044
Sabmiller PLC,
6.500%, due 7/1/16	BBB+		3,100		3,238
Western Union Co.,
5.930%, due 10/1/16	A-		2,900		2,924
Ras Laffan Lng II,
5.298%, due 9/30/20*	A+		3,000		2,890
Total Corporate Obligations			72,989		74,339
Total Investments - 99.6% (Cost $307,679)			297,750		303,573
Cash and other assets, less liabilities - 0.4%					1,113
Net Assets - 100%				$	304,686

WAC = Weighted Average Coupon

VRN = Variable Rate Note

NRSRO = Nationally Recognized Statistical Rating Organization, such as S&P, Moody’s or Fitch

The obligations of certain U. S. Government-sponsored securities are neither issued nor guaranteed by the U. S. Treasury

* Deemed illiquid pursuant to Liquidity Procedures adopted by the Board of Trustees. These holdings represent 8.8% of the net assets at September 30, 2006.

See accompanying Notes to Portfolios of Investments.

Ready Reserves Fund

Portfolio of Investments, September 30, 2006 (all amounts in thousands) (unaudited)

Principal Amount		Issuer	Amortized Cost
	Mortage Backed Securities - 1.4%
$	978	Federal Home Loan Bank (FHLB),
		2.600%, 3/30/07	$	987
	15,990	Federal Home Loan Mortgage Corp. (FHLMC),
		4.125% - 5.375%, 2/20/07 - 6/18/07		15,994
	16,968	Total Mortgage Backed Securities		16,981
	Canadian Fixed Rate Notes - 1.3%
	10,940	Province of Manitoba,
		4.250%, 11/20/06		10,985
	2,434	Province of Ontario,
		2.650%, 12/15/06		2,471
	2,058	Province of Quebec,
		7.000%, 1/30/07		2,036
	15,432	Total Canadian Fixed Rate Notes		15,492
	Fixed Rate Notes - 23.8%
	17,493	Abbott Laboratories,
		6.400%, 12/1/06		17,325
	11,393	American General Finance Corp,
		3.000% - 5.750% , 11/15/06 - 3/15/07		11,457
	10,773	Berkshire Hathaway,
		3.400%, 7/2/07		10,809
	1,999	B.P. Argentina
		6.750%, 2/1/07		1,985
	26,342	B.P. Capital PLC,
		2.625% - 6.950%, 11/08/06 - 3/15/07		26,612
	1,515	B.P. Company North America,
		6.500%, 8/1/07		1,514
	26,816	Caterpillar Financial Services,
		2.500% - 3.000%, 10/3/06 - 1/30/07		26,961
	11,198	Chevron Corporation,
		3.500% - 8.250%, 10/1/06 - 9/17/07		11,174
	11,701	GE Capital Corp,
		2.850% - 8.750%, 11/1/06 - 8/15/07		11,699
	22,233	IBM Corporation,
		2.375% - 4.875%, 10/1/06 - 11/1/06		22,392
	4,761	Kimberly-Clark Corp,
		7.100%, 8/1/07		4,756
	7,130	National Rural Utility Coop,
		6.500%, 3/1/07		7,126
	14,413	Pfizer, Inc.
		2.500%, 3/15/07		14,586
	22,907	Procter and Gamble Corporation,
		3.500% - 4.750%, 6/15/07 - 10/15/07		22,945
	26,812	SLM Corporation,
		3.500% - 5.625%, 9/30/06 - 4/10/07		26,927
	12,996	Toyota Motor Credit,
		2.700% - 5.650%, 1/15/07 - 1/30/07		13,005
	20,796	US Bancorp,
		2.400% - 5.100%, 11/15/06 - 8/23/07		20,939
	Fixed Rate Notes (Continued)
$	5,039	USAA Capital Corporation,
		7.050%, 11/8/06	$	4,990
	11,507	Wal-Mart Stores,
		4.375%, 7/12/07		11,535
	10,229	Wells Fargo Financial,
		5.125% - 6.750%, 12/1/06 - 6/15/07		10,193
	278,053	Total Fixed Rate Notes		278,930
	Variable Rate Notes - 14.3%
	14,443	American General Finance Corp,
		5.565% - 5.580% , 11/15/06 - 4/5/07		14,439
	24,430	American Honda Finance Corp,
		5.510% - 5.523% , 12/6/06 - 3/8/07		24,430
	2,620	Caterpillar Financial Services,
		5.412% - 5.470%, 2/12/07 - 2/26/07		2,620
	20,289	General Electric Capital Corporation,
		5.390% - 5.560%, 12/08/06 - 3/9/07		20,279
	10,805	IBM Corporation,
		5.364%, 6/28/07		10,805
	9,997	Paccar Financial Corporation,
		5.420%, 1/16/07		9,999
	5,033	SLM Corp,
		5.605%, 1/25/07		5,032
	20,005	Toyota Motor Credit,
		5.463% - 5.477%, 7/2/07 - 10/15/07		20,005
	18,236	US Bank,
		5.390% - 5.445%, 1/25/07 - 9/10/07		18,233
	15,992	Wal-Mart Stores,
		5.261%, 3/28/07		15,996
	26,067	Wells Fargo Financial,
		5.499%, 3/23/07 - 9/28/07		26,058
	167,917	Total Variable Rate Notes		167,896
	Asset Backed Commercial Paper - 55.5%
	50,000	Amsterdam Funding Corporation,
		5.260%, 10/5/06 - 10/24/06		49,895
	40,000	Chariot Funding, L.L.C.,
		5.260%, 10/3/06 - 10/30/06		39,902
	29,845	CAFCO, L.L.C.,
		5.250% - 5.260%, 10/23/06 - 11/8/06		29,719
	18,600	Ciesco, L.L.C.,
		5.250% - 5.260%, 10/27/06 - 11/16/06		18,502
	36,694	CRC Funding, L.L.C.,
		5.250% - 5.270%, 10/4/06 - 11/8/06		36,547
	50,000	Daimler Chrysler Revolving Auto,
		5.260% - 5.270%, 10/12/06 - 11/3/06		49,835
	50,000	FCAR Owner Trust,
		5.270 - 5.280%, 10/6/06 - 11/10/06		49,784
	30,000	Govco, Inc.,
		5.260% - 5.360%, 10/4/06 - 10/16/06		29,963
	50,000	Jupiter Securitization Co. L.L.C.,
		5.26%, 10/4/06 - 10/30/06		49,851

Portfolio of Investments, September 30, 2006 (all amounts in thousands) (unaudited)

Principal Amount		Amortized Cost
Asset Backed Commercial Paper (Continued)
$43,962	Old Line Funding,
	5.260% - 5.280%, 10/12/06 - 11/9/06	$	43,818
20,000	Park Avenue Receivables,
	5.250% - 5.260%, 10/24/06 - 10/31/06		19,920
10,000	Preferred Receivables Funding,
	5.260%, 10/11/06		9,984
37,705	Ranger Funding,
	5.250% - 5.260%, 11/1/06 - 11/9/06		37,505
53,000	Sheffield Receivables,
	5.260%, 10/6/06 - 11/2/06		52,862
52,774	Thames Asset Global Securitization,
	5.260% - 5.270%, 10/10/06 - 11/2/06		52,575
40,794	Thunder Bay Funding,
	5.260% - 5.270%, 10/3/06 - 10/25/06		40,712
10,000	Variable Funding,
	5.250%, 10/13/06		9,981
30,000	Windmill Funding Corporation,
	5.260%, 10/11/06 - 10/26/06		29,918
653,374	Total Asset Backed Commercial Paper		651,273
Demand Notes - 4.0%
$19,621	American Express Corporation, VRN,
	5.175%, 10/2/06	$	19,621
26,789	Prudential Funding, VRN,
	5.305%, 10/2/06		26,789
46,410	Total Demand Notes		46,410
1,178,154	Total Investments - 100.3% (Cost $1,176,982)		1,176,982
	Liabilities plus cash and other assets - (0.3)%		(3,479	)
	Net assets - 100.0%	$	1,173,503
	Portfolio Weighted Average Maturity		60 Days

VRN = Variable Rate Note

See accompanying Notes to Financial Statements.

Institutional International Growth Fund

Portfolio of Investments, September 30, 2006 (all dollar amounts in thousands) (unaudited)

	Issuer	Shares	Value
	Common Stocks - Europe - 31.7%
	Austria - 1.4%
	Erste Bank (Banking)	235,804	$	14,670
	Raiffeisen Interantional Bank (Banking)	94,400		10,061
				24,731
	France - 9.2%
	April Group S.A. (Insurance)	44,700		1,924
	BNP Paribas (Banking)	241,250		25,926
	Capgemini S.A. (IT services)	235,700		12,474
	Essilor International (Health care equipment & supplies)	143,600		14,697
	Eurazeo (Diversified financial services)	71,725		8,251
	Iliad S.A. (Internet software & services)	83,500		6,000
	Klepierre (Real estate investment trusts)	42,670		6,387
	L’Oreal S.A. (Personal products)	429,700		43,591
	LVMH Moet Hennessey Louis Vuitton SA (Apparel & luxury goods)	212,200		21,824
*	Orpea (Health care providers & services)	57,933		4,397
	Vinci S.A.(Construction & engineering)	136,800		15,209
				160,680
	Germany - 4.7%
	Bijou Brigitte (Apparel & luxury goods)	21,150		5,440
	Celesio AG (Health care providers & services)	190,900		9,944
	Continental AG (Auto components)	82,100		9,504
	CTS Eventim AG (Media)	55,700		1,814
	E.ON AG (Electrical utilities)	150,080		17,798
*	Q-Cells AG (Electrical equipment)	153,420		6,268
*	Qiagen NV (Life science tools & services)	381,200		5,965
	Rational AG (Houshold durables)	17,590		3,375
	SAP AG (Software)	93,200		18,453
	Solarworld AG (Electrical equipment)	68,200		3,736
				82,297
	Greece - 1.7%
	Coca-Cola Hellenic Bottling S.A. (Beverages)	262,200		9,024
*	EFG Eurobank (Banking)	311,160		9,529
	National Bank of Greece (Banking)	243,726		10,516
				29,069
	Ireland - 2.1%
	Anglo Irish Bank plc (Banking)	939,600		15,414
	Kingspan Group plc (Building products)	466,000		9,602
*	Ryanair Holdings plc - ADR (Airlines)	126,400		8,000
	United Drug plc (Health care providers & services)	736,700		3,276
				36,292
	Italy - 2.9%
	Azimut Holding SpA (Capital markets)	449,700		5,134
	Credito Emiliano SpA (Banking)	420,400		5,966
	Luxottica Group SpA (Apparel & luxury goods)	570,900		16,833
	Saipem SpA (Energy equipment & services)	753,200		16,376
	Tod’s SpA (Apparel & luxury goods)	76,800		6,072
				50,381
	Netherlands - 0.6%
*	Tomtom NV (Software)	243,600		10,249
	Norway - 0.3%
	Statoil Asa (Oil, gas & consumable fuels)	242,900		5,784
	Spain - 1.5%
*	Grifols S.A. (Biotechnology)	635,300		6,437
	Industria De Textile (Specialty retail)	435,700		20,321
				26,758
	Sweden - 1.2%
	Ericsson (LM) (Communications equipment)	3,514,000		12,141
*	Modern Times Group (Media)	117,950		6,104
*	Tradedoubler AB (Internet software & services)	121,500		2,362
				20,607
	Switzerland - 6.1%
	EFG International (Capital markets)	243,500		7,996
	Kuehne & Nagel International AG (Marine)	203,600		14,094
	Nobel Biocare Holdings AG (Health care equipment & supplies)	33,500		8,237
*	Partners Group Global Opporunites, Ltd. (Capital markets)	31,150		2,675
	Roche Holdings AG (Pharmaceuticals)	208,600		36,039
	SGS S.A. (Commercial services & supplies)	5,690		5,726
	UBS AG (Capital markets)	542,500		32,429
				107,196
	Issuer	Shares	Principal
	United Kingdom - 18.5%
	AstraZeneca plc (Pharmaceuticals)	552,300	$	34,496
	BG Group plc (Oil, gas & consumable fuels)	1,892,620		22,998
*	Cairn Energy plc (Oil, gas & consumable fuels)	253,200		8,844
	Carphone Warehouse Group plc (Specialty retail)	1,365,600		7,853
*	CSR plc (Communications equipment)	372,800		5,881
	HBOS plc (Banking)	1,803,000		35,652
	Homeserve plc (Commercial services & supplies)	136,000		4,230
	Man Group plc (Capital markets)	2,100,800		17,619
	Michael Page International (Commercial services & supplies)	1,388,300		9,992
	Northern Rock plc (Thrifts & mortgage finance)	1,047,400		22,896
	Reckitt Benckiser plc (Household products)	737,950		30,571
*	Rolls-Royce Group plc (Aerospace & defense)	4,220,900		35,772
	Rotork plc (Electronic equipment & instruments)	404,100		5,809
	RPS Group plc (Commercial services & supplies)	788,800		3,378
	Serco Group (Commercial services & supplies)	1,505,100		10,594
	Standard Chartered plc (Banking)	608,200		15,566
	Tesco plc (Food & staples retailing)	4,876,100		32,857
	Tullow Oil plc (Oil, gas & consumable fuels)	903,080		6,389
	Ultra Electronic Holdings plc (Aerospace & defense)	304,200		5,991
	Victrex plc (Chemicals)	172,000		2,551
	VT Group plc (Aerospace & defense)	620,300		5,620
				325,559
	Emerging Asia - 15.0%
	China - 4.7%
	China Life Insurance Co. (Insurance)	9,509,000		18,578
	China Mengniu Dairy Co. (Food products)	4,495,000		7,526
	China Vanke Company Ltd. (Real estate management & development)	4,090,200		4,304
	Ctrip.com International Ltd. - ADR (Hotels, restaurants & leisure)	134,900		6,064
*	Focus Media Holding Ltd.- ADR (Media)	130,300		7,547
*	Foxconn International (Communications equipment)	3,019,800		9,288
	Fu Ji Food & Catering (Hotels, restaurants & leisure)	1,819,000		3,040
	Hopson Development Holdings (Real estate management & development)	1,237,000		2,495
	Lee and Man Paper Manufacturing Ltd. (Containers & packaging)	1,542,000		2,890
	Li Ning Co. Ltd. (Leisure equipment & products)	5,440,000		6,207
	Parkson Retail Group Ltd. (Multiline retail)	1,035,000		3,829
	Ports Design Limited (Apparel & luxury goods)	1,890,500		2,910
*	Suntech Power Holdings Co. Ltd - ADR (Electrical equipment)	136,600		3,528
	Wumart Stores, Inc., Class “H” (Food & staples retailing)	1,050,000		3,638
				81,844
	India - 4.3%
	Bharat Heavy Electricals Ltd. (Electrical equipment)	202,100		10,535
*	Bharti Airtel Ltd. (Wireless telecommunication services)	585,900		5,990
	Dabur India Ltd. (Personal products)	2,259,200		6,719
	HDFC Bank (Banking)	375,600		7,550
	Hindustan Lever Ltd. (Household durables)	1,888,600		10,582
	Housing Development Finance Corp. (Thrifts & mortgage finance)	213,500		7,119
	Infosys Technologies, Ltd. (IT services)	363,956		14,655
	Maruti Udyog Ltd. (Automobiles)	295,200		6,296
	Suzlon Energy Ltd. (Electrical equipment)	218,400		5,872
				75,318
	Indonesia - 0.2%
*	PT Kalbe Farma Tbk (Pharmaceuticals)	26,737,400		3,822
	Malaysia - 0.6%
	Bumiputra Commerce Holdings Bhd (Banking)	4,412,100		7,949
	Transmile Group Bhd (Air freight & logistics)	796,300		2,506
				10,455
	South Korea - 2.4%
	Kookmin Bank (Banking)	104,750		8,203
*	NHN Corp. (Internet software & services)	98,820		10,349
	Samsung Electronics Co. (Semiconductors)	24,170		16,945
	Shinsegae Co. Ltd. (Food & staples retailing)	13,110		6,786
				42,283
	Taiwan - 2.8%
	High Tech Computer Corporation (Computers)	414,600		10,960
*	Himax Technologies, Inc. - ADR (Semiconductors)	386,000		2,204
	Hon Hai Precision Industry (Electronic equipment)	4,029,507		24,525
	Largan Precision Co. Ltd. (Leisure equipment & products)	254,100		5,199
	Mediatek Inc. (Semiconductors)	753,120		7,132
				50,020

See accompanying Notes to Portfolio of Investments.

Institutional International Growth Fund

Portfolio of Investments, September 30, 2006 (all dollar amounts in thousands)

	Issuer	Shares		Value
	Japan - 14.0%
	Aeon Mall Co., Ltd. (Real estate management & development)		152,900	$	8,093
	Chiyoda Corp. (Construction & engineering)		341,800		6,698
	Denso Corporation (Auto components)		838,800		29,529
	Honeys Company, Ltd. (Specialty retail)		115,000		5,883
	Hoya Corporation (Electronic equipment & instruments)		228,400		8,614
	ITO EN, Ltd. (Beverages)		158,900		5,474
	Joint Corporation (Real estate management & development)		170,400		5,844
*	K.K. DaVinci Advisors (Real estate management & development)		4,904		4,705
	Kenedix, Inc. (Real estate management & development)		917		5,129
	Keyence Corporation (Electronic equipment & instruments)		65,389		15,050
	Komatsu Ltd. (Machinery)		677,000		11,714
	MISUMI Group, Inc. (Trading companies & distributors)		261,200		4,476
	Mitsubishi Tokyo Financial (Banking)		2,546		32,761
	Nakanishi Inc. (Health care equipment & supplies)		42,500		5,598
	Nitori Company Ltd. (Specialty retail)		122,880		5,557
	Nitto Denko Corporation (Chemicals)		115,000		6,813
	Orix Corporation (Consumer finance)		125,900		34,785
	Park 24 Co., Ltd. (Commercial services & supplies)		193,500		6,364
	Ryohin Keikaku Co. Ltd. (Multiline retail)		87,600		6,202
	Sharp Corp. (Household durables)		694,100		11,912
	Sparx Asset Management Co. (Capital markets)		3,728		3,449
	Suruga Bank (Banking)		954,000		11,923
	Yamada Denki Company (Specialty retail)		100,900		10,132
					246,705
	Asia - 7.0%
	Australia - 2.9%
	BHP Billiton Ltd. (Metals & mining)		946,100		17,935
	Macquarie Bank, Ltd. (Capital markets)		313,500		16,164
	Seek Ltd. (Commercial services & supplies)		1,119,100		4,207
	United Group Ltd. (Construction & engineering)		608,000		6,432
	WorleyParsons, Ltd. (Energy equipment & services)		465,300		5,832
					50,570
	Hong Kong - 2.0%
*	China Insurance International (Insurance)		2,626,160		2,043
	Esprit Holdings Ltd. (Specialty retail)		1,791,500		16,326
	Li & Fung Ltd. (Distributors)		6,763,800		16,793
					35,162
	Singapore - 2.1%
	Capitaland, Ltd. (Real estate management & development)		8,247,800		26,155
	Goodpack Ltd. (Air freight & logistics)		2,168,000		2,345
	Osim International Ltd. (Specialty retail)		4,334,640		5,129
	Raffles Education Corporation Ltd. (Diversified consumer services)		1,656,000		2,647
					36,276
	Emerging Latin America - 6.3%
	Brazil - 2.1%
	Companhia de Concessoes Rodoviarias (Transportation infrastructure)		598,200		5,777
	Cyrela Brazil Realty S.A. (Household durables)		234,100		3,983
	Gol Linhas Aereas Int S.P - ADR (Airlines)		252,600		8,677
	Localiza Rent a Car S.A. (Road & rail)		142,400		2,954
	Lojas Renner S.A. (Multiline retail)		71,100		4,120
	Natura Cosmeticos S.A. (Personal products)		389,500		4,783
	Submarino S.A.(Internet & catalog retail)		198,300		3,858
*	Totvs S.A. (Software)		178,500		3,370
					37,522
	Chile - 1.0%
*	Cencosud S.A. -ADR 144A (Specialty retail)		253,200		9,823
	S.A.C.I. Falabella (Multiline retail)		2,310,500		7,124
					16,947
	Columbia - 0.3%
	Bancolombia S.A. - ADR (Banking)		210,500		6,020
	Mexico - 2.5%
	America Movil S.A. (Wireless telecommunication services)		6,393,400		12,619
*	Corporacion Geo Sa De Cv (Household durables)		947,900		3,988
*	Desarrolladora Homex S.A. -ADR (Household durables)		103,900		3,923
	Grupo Aeropuertario Del ADR (Transportation infrastructure)		81,900		2,785
*	Urbi Desarrollos Urbanos S.A. (Household durables)		2,618,500		7,372
	Walmart de Mexico (Food & staples retailing)		3,844,800		13,079
					43,766
	Panama - 0.4%
	Copa Holdings S.A. Class “A” (Airlines)+		225,400		7,738
	Issuer	Shares or Principal Amount		Value
	Canada - 3.8%
	Cameco Corporation (Metals & mining)		428,100	$	15,600
*	Gildan Activewear, Inc. (Apparel & luxury goods)		119,100		5,790
	Manulife Financial Corp. (Insurance)		678,600		21,856
	Ritchie Brothers Auctioneers, Inc. (Commercial services & supplies)+		90,700		4,862
	Shoppers Drug Mart Corp. (Food & staples retailing)		123,400		5,041
	Suncor Energy, Inc.(Oil, gas & consumable fuels)		201,300		14,442
					67,591
	Emerging Europe, Mid-East, Africa - 1.6%
	Czech Republic - 0.2%
*	Central European Media Enterprises Ltd. Class “A” (Media)+		55,400	$	3,715
	Israel - 0.6%
	Teva Pharmaceutical Industries, Ltd. - ADR (Pharmaceuticals)		294,400		10,036
	Russia - 0.3%
*	CTC Media, Inc. (Media)+		243,102		5,421
	South Africa - 0.5%
*	Aspen Pharmacare (Pharmaceuticals)		444,200		1,986
	Naspers Ltd. (Media)		233,700		3,589
	Sasol ASA (Oil, gas & consumable fuels)		89,400		2,938
					8,513
	Total Common Stock - 97.9% (cost $1,317,761)				1,719,327
	Preferred Stocks
	Brazil - 0.8%
	Banco Itau Holding (Banking)		251,700		7,536
	Petroleo Brasileiro S.A. (Oil, gas & consumable fuels)		402,000		7,495
					15,031
	Total Preferred Stocks - 0.8% (cost $8,531)				15,031
	Investment in Affiliate
	William Blair Ready Reserves Fund		6,443,104		6,443
	Total Investment in Affiliate - 0.4% (cost $6,443)				6,443
	Short-Term Investments
	American Express Demand Note, VRN 5.175% due 10/2/06	$	9,065,000		9,065
	Prudential Funding Demand Note, VRN 5.305% due 10/2/06		52,000		52
	Total Short-term Investments - 0.5% (cost $9,117)				9,117
	Repurchase Agreement	$	16,770,160		16,770
	Investors Bank & Trust Company, 5.16% dated 9/29/2006, due 10/02/2006, repurchase price $17,608, collateralized by FN, Pool# 820971
	Total Repurchase Agreement - 1.0% (Cost $16,770)				16,770
	Total Investments - 100.6% (cost $1,358,622)				1,766,688
	Liabilities, plus cash and other assets - (0.6)%				(11,365	)
	Net assets - 100.0%			$	1,755,323

* Non-income producing securities

ADR = American Depository Receipt

GDR = Global Depository Receipt

VRN = Variable Rate Note

+ = U.S. listed foreign security

For securities, primarily traded on exchanges or markets that close before the close of regular trading on the New York Stock Exchange the Fund uses an independent pricing service on a daily basis to fair value price the securities pursuant to Valuation Procedures adopted by the Board of Trustees.

See accompanying Notes to Portfolio of Investments.

Institutional International Growth Fund

Portfolio of Investments, September 30, 2006 (all dollar amounts in thousands) (unaudited)

At September 30, 2006 the Fund’s Portfolio of Investments includes the following industry categories:

Financials	28.0	%
Consumer Discretionary	18.4	%
Industrials	13.7	%
Information Technology	11.2	%
Consumer Staples	10.4	%
Health Care	8.4	%
Energy	5.2	%
Materials	2.6	%
Telecommunication Services	1.1	%
Utilities	1.0	%
	100.0	%

At September 30, 2006 the Fund’s Portfolio of Investments includes the following currency categories:

Euro	23.8	%
British Pound Sterling	18.8	%
Japanese Yen	14.2	%
Swiss Franc	6.2	%
Hong Kong Dollar	5.8	%
United States Dollar	5.2	%
Indian Rupee	4.4	%
Canadian Dollar	3.6	%
Australian Dollar	2.9	%
Taiwan Dollar	2.8	%
Brazilian Real	2.5	%
South Korean Won	2.4	%
Mexico Nuevo Peso	2.1	%
Singapore Dollar	2.1	%
Swedish Krone	1.2	%
All other currencies	2.0	%
	100.0	%

See accompanying Notes to Portfolio of Investments.

Institutional International Equity Fund

Portfolio of Investments, September 30, 2006 (all dollar amounts in thousands) (unaudited)

	Issuer	Shares	Value
	Common Stocks
	Europe - 38.3%
	Austria - 1.4%
	Erste Bank (Banking)	68,766	$	4,278
	Raiffeisen International Bank (Banking)	28,100		2,995
				7,273
	France - 13.2%
	BNP Paribas (Banking)	97,960		10,527
	Capgemini S.A. (IT services)	71,000		3,758
	Essilor International (Health care supplies)	53,300		5,455
	Eurazeo (Diversified financial services)	33,945		3,905
	Groupe Danone (Food products)	96,700		13,562
	Iliad S.A. (Internet software and services)	22,600		1,624
	L’Oreal S.A. (Personal products)	162,600		16,495
	LVMH Moet Hennessey Louis Vuitton SA (Apparel & luxury goods)	92,800		9,544
	Vinci S.A. (Construction & engineering)	53,700		5,970
				70,840
	Germany - 3.9%
	Bijou Brigitte (Apparel & luxury goods)	4,590		1,181
	Celesio AG (Healthcare providers & services)	56,800		2,959
	E.ON AG (Electric utilities)	73,600		8,728
*	Qiagen, NV. (Biomedical)	164,500		2,574
	SAP AG (Software)	21,750		4,306
	Solarworld AG (Electrical equipment)	23,800		1,304
				21,052
	Greece - 2.3%
	Coca-Cola Hellenic Bottling S.A. (Beverages)	122,640		4,221
	EFG Eurobank (Banking)	82,792		2,536
	National Bank of Greece (Banking)	124,630		5,377
				12,134
	Ireland - 1.2%
	Anglo Irish Bank plc (Banking)	320,800		5,262
	IAWS Group plc (Food products)	70,100		1,302
				6,564
	Italy- 3.1%
	Azimut Holding SpA (Capital markets)	100,800		1,151
	Luxottica Group SpA (Apparel and luxury goods)	316,700		9,338
	Saipem SpA (Energy equipment and services)	273,100		5,937
				16,426
	Netherlands- 0.9%
*	Tomtom NV (Software)	109,400		4,603
	Norway - 0.5%
	Statoil ASA (Oil, gas & consumable fuels)	110,310		2,627
	Spain - 1.7%
	Industria De Textile (Specialty retail)	198,700		9,267
	Sweden- 1.4%
	Ericsson LM (Communications equipment)	1,651,000		5,704
*	Modern Times Group (Media)	29,900		1,548
				7,252
	Switzerland - 8.7%
*	EFG International (Financial services)	83,800	$	2,751
	Kuehne & Nagel International AG (Marine)	59,400		4,112
	Nobel Biocare Holding AG (Health care equipment & supplies)	10,000		2,459
	Roche Holdings AG (Pharmaceuticals)	109,100		18,849
	SGS S.A. (Commercial services & supplies)	3,950		3,975
	UBS AG (Capital markets)	244,810		14,634
				46,780
	United Kingdom - 19.5%
	AstraZeneca plc (Pharmaceuticals)	212,200		13,253
	BG Group plc (Oil, gas & consumable fuels)	967,600		11,758
*	Cairn Energy plc Oil, gas & consumable fuels)	93,100		3,252
	Carphone Warehouse Group plc (Specialty retail)	414,000		2,381
*	CSR plc (Communications equipment)	129,300		2,039
	HBOS plc (Banking)	698,100		13,804
	Man Group plc (Capital markets)	632,200		5,302
	Northern Rock plc (Thrift & mortgage finance)	317,600		6,943
	Reckitt Benckiser plc (Household products)	294,300		12,192
*	Rolls-Royce Group plc (Aerospace & defense)	1,282,700		10,871
	Rotork plc (Electronic equipment & instruments)	118,600		1,705
	Standard Chartered plc (Banking)	244,400		6,255
	Tesco plc (Food & staples retailing)	1,922,100		12,952
	Tullow Oil plc Oil, gas & consumable fuels)	197,600		1,398
				104,105
	Japan - 13.3%
	Aeon Mall Co., Ltd. (Real estate management & development)	55,000		2,911
	Chiyoda Corporation (Construction & engineering)	107,000		2,097
	Denso Corporation (Auto parts manufacturing)	252,000		8,871
	Honeys Company, Ltd. (Specialty retail)	33,900		1,734
	Hoya Corporation (Electronic equipment & instruments)	130,700		4,929
*	K.K. DaVinci Advisors (Real estate management & development)	1,507		1,446
	Keyence Corporation (Electronic equipment & instruments)	22,510		5,181
	Komatsu Ltd. (Machinery)	279,000		4,828
	MISUMI Group, Inc. (Trading companies & distributors)	71,300		1,222
	Mitsubishi Tokyo Financial (Financial services)	1,073		13,807
	Orix Corporation (Consumer finance)	54,000		14,920
	Ryohin Keikaku Co. Ltd. (Multiline retail)	20,400		1,444
	Sharp Corporation (Electric technology)	297,000		5,097
	Yamada Denki Co., Ltd. (Specialty retail)	28,500		2,862
				71,349

See accompanying Notes to Portfolio of Investments .

Institutional International Equity Fund

Portfolio of Investments, September 30, 2006 (all dollar amounts in thousands) (unaudited)

	Issuer	Shares		Value
	Common Stocks-(continued)
	Emerging Asia - 10.5%
	China - 2.8%
	China Life Insurance Co. (Insurance)		3,611,000	$	7,055
	Ctrip.com International Ltd. - ADR (Hotels, restaurants & leisure)		41,800		1,879
*	Focus Media Holding Ltd. - ADR (Media)		38,800		2,247
*	Foxconn International (Communications equipment)		994,000		3,057
	Hopson Development Holding Ltd. (Real estate management & development)		476,000		960
					15,198
	India - 4.0%
	Bharat Heavy Electricals Ltd. (Electrical equipment)		78,400		4,087
*	Bharti Airtel Limited (Wireless telecommunication services)		302,831		3,096
	HDFC Bank (Banking)		164,710		3,311
	Infosys Technologies Ltd. (IT services)		128,800		5,186
	Suzlon Energy Ltd. (Electrical equipment)		110,100		2,960
	Vedanta Resources Plc (Metals & mining)		134,800		2,935
					21,575
	Indonesia - 0.3%
	PT Bank Rakyat Indonesia (Banking)		3,499,500		1,855
	South Korea - 0.9%
	Samsung Electronics Co. (Semiconductors)		6,540		4,585
	Taiwan - 2.5%
	High Tech Computer Corp. (Computers)		167,200		4,420
*	Himax Technologies, Inc.-ADR (Semiconductors)		141,400		807
	Hon Hai Precision Industry Corp. (Electronic equipment)		1,314,881		8,003
					13,230
	Asia- 5.3%
	Australia - 1.5%
	Allco Finance Group Limited (Capital markets)		219,200		1,738
	Macquarie Bank Ltd. (Capital markets)		126,700		6,533
					8,271
	Hong Kong - 2.1%
	Esprit Holdings Ltd. (Specialty retail)		545,500		4,971
	Li & Fung Ltd. (Distribution)		2,439,100		6,056
					11,027
	Singapore - 1.7%
	Capitaland, Ltd. (Real estate management & development)		2,784,900		8,831
	Emerging Latin America - 5.1%
	Brazil - 1.4%
	Companhia de Concessoes Rodoviarias (Transportation infrastructure)		181,000		1,748
	Gol-Linhas Aereas Inteligentes S.A. - ADR (Airlines)		77,400		2,659
	Localiza Rent a Car S.A. (Road & rail)		38,200		792
	Natura Cosmeticos S.A. (Personal products)		204,400		2,510
					7,709
	Chile- 0.5%
	Cencosud S.A. -ADR 144A (Specialty retail)		70,400		2,731
	Columbia- 0.4%
	Bancolumbia S.A. -ADR (Banking)		77,200		2,208
	Mexico - 2.8%
	America Movil S.A. (Wireless telecommunications services)		3,697,900		7,299
	Walmart de Mexico (Food & Staples retailing)		2,299,700		7,823
					15,122
	Issuer	Shares or Principal Amount		Value
	Common Stocks - (continued)
	Canada- 3.6%
	Cameco Corporation (Metals and mining)		123,200	$	4,489
	Manulife Financial Corporation (Insurance)		254,500		8,197
	Shoppers Drug Mart Corporation (Food & staples retailing)		56,400		2,304
	Suncor Energy, Inc. (Oil, gas & consumable fuels)		63,000		4,520
					19,510
	Emerging Europe, Mid-East, Africa - 1.5%
	Isreal- 1.0%
	Teva Pharmaceutical Industries Ltd. - ADR (Pharmaceuticals)		152,000		5,182
	South Africa - 0.5%
	Naspers Ltd. (Media)		52,090		800
	Sasol ASA (Oil, gas & consumable fuels)		52,300		1,719
					2,519
	Total Common Stock — 97.1% (cost $473,485)				519,825
	Preferred Stocks
	Brazil - 1.0%
	Banco Itau S.A. (Banking)		106,900		3,201
	Petroleo Brasileiro S.A. (Oil, gas & consumable fuels)		119,400		2,226
					5,427
	Total Preferred Stocks - 1.0% (cost $4,473)				5,427
	Investment in Affiliate
	William Blair Ready Reserves Fund		1,979,970		1,980
	Total Investment in Affiliate - 0.4% (cost $1,980)				1,980
	Short-Term Investments
	American Express Demand Note,	$	430,000		430
	VRN, 5.172%, due 10/03/06
	Prudential Funding Demand Note,		241,000		241
	VRN, 5.305%, due 10/03/06
	Total Short-Term Investments - 0.1% (cost $671)				671
	Repurchase Agreement
	Investors Bank & Trust Company, 5.16% dated 9/29/2006, due 10/02/2006, repurchase price $274, collateralized by SBA Pool #503999	$	260,638		261
	Total Repurchase Agreement - 0.1% (Cost $261)				261
	Total Investments - 98.7% (cost $480,870)				527,903
	Cash plus other assets, less liabilities - 1.3%				7,140
	Net assets - 100.0%				535,043

* Non-income producing securities

ADR = American Depository Receipt

VRN= Variable Rate Note

For securities primarily traded on exchanges or markets that close before the close of regular trading on the New York Stock Exchange, the Fund uses an independent pricing service on a daily basis to fair value price the securities pursuant to Valuation Procedures adopted by the Board of Trustees.

See accompanying Notes to Portfolio of Investments.

At September 30, 2006 the Fund’s Portfolio of Investments includes the following industry categories:

Consumer Discretionary	13.7	%
Consumer Staples	14.0	%
Energy	7.8	%
Financials	30.9	%
Healthcare	9.7	%
Industrials and Services	8.3	%
Information Technology	11.4	%
Materials	0.5	%
Telecommunication Services	2.0	%
Utilities	1.7	%
	100.0	%

At September 30, 2006 the Fund’s Portfolio of Investments includes the following currency categories:

Euro	28.2	%
Japanese Yen	13.6	%
British Pound Sterling	20.4	%
Indonesian Rupiah	0.4	%
Swiss Franc	8.9	%
Canadian Dollar	3.7	%
Indian Rupee	3.6	%
Hong Kong Dollar	4.2	%
Mexico Nuevo Peso	2.9	%
South African Rand	0.5	%
Brazilian Real	2.0	%
United States Dollar	3.4	%
Singapore Dollar	1.7	%
Taiwan Dollar	2.4	%
Australian Dollar	1.6	%
Norwegian Krone	0.5	%
All other currencies	2.0	%
	100.0	%

Notes to Portfolio of Investments

(1) Significant Accounting Policies

(a) Description of the Fund

William Blair Funds (the “Fund”) is a diversified mutual fund registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. For each portfolio, the number of shares authorized is unlimited. The Fund currently consists of the following fifteen portfolios (the “Portfolios”), each with its own investment objectives and policies.

Equity Portfolios	International Portfolios
Growth	International Growth
Tax-Managed Growth	International Equity
Large Cap Growth	International Small Cap Growth
Small Cap Growth	Emerging Markets Growth
Mid Cap Growth	Institutional International Growth
Small-Mid Cap Growth	Institutional International Equity
Value Discovery
	Fixed Income Portfolio
	Income
	Money Market Portfolio
	Ready Reserves

The investment objectives of the Portfolios are as follows:

Equity	Long-term capital appreciation.
International	Long-term capital appreciation.
Fixed Income	High level of current income with relative stability of principal.
Money Market	Current income, a stable share price and daily liquidity.

(b) Investment Valuation

The market value of domestic equity securities and options is determined by valuing securities traded on national securities exchanges or markets or in the over-the-counter markets at the last sales price or, if applicable, the official closing price or, in the absence of a sale on the date of valuation, at the latest bid price.

For international securities, if the foreign exchange or market on which a security is primarily traded closes before the close of regular trading on the New York Stock Exchange (4:00 p.m. Eastern time), the Funds use an independent pricing service on a daily basis to estimate the fair value price as of the close of regular trading on the New York Stock Exchange. The Board of Trustees has determined that the passage of time between when the foreign exchanges or markets close and when the Portfolios compute their net asset values could cause the value of international securities to no longer be representive of their market price or accurate. In addition, quarterly the Board of Trustees receives a report which tracks the fair value prices used to calculate the net asset value to the next day’s opening local prices. Otherwise, the value of foreign equity securities is determined based on the last sale price on the foreign exchange or market on which it is primarily traded or, if there have been no sales during that day, at the latest bid price. Foreign currency forward contracts and foreign currencies are valued at the forward and current exchange rates, respectively, prevailing on the date of valuation.

Long-term, fixed income securities are valued based on market quotations, or by independent pricing services that use prices provided by market makers or by estimates of market values obtained from yield data relating to instruments or securities with similar characteristics.

Investments in other funds are valued at the underlying fund’s net asset value on the date of valuation. Other securities, and all other assets, including securities for which a market price is not available, or the value of which is affected by a significant valuation event, are valued at fair value as determined in good faith by, or under the direction of the Board of Trustees and in accordance with the Fund’s valuation procedures. As of September 30, 2006, there were securities held in the Small Cap Growth, International Growth, International Equity, International Small Cap Growth, Emerging Markets Growth, Institutional International Growth and Institutional International Equity Portfolios requiring fair valuation pursuant to the Fund’s valuation procedures. Short-term securities held in the Ready Reserves Fund are valued at amortized cost, which approximates market value.

(c) Investment Income and Investment Transactions

Dividend income is recorded on the ex-dividend date, except for those dividends from certain foreign securities which are recorded as soon as the information is available. Foreign currency gains and losses associated with fluctuations in the foreign currency rate versus the United States dollar are recorded in the Statement of Operations as a component of the net realized gain (loss) on foreign currency transactions and other assets and liabilities.

Premiums and discounts are accreted and amortized on a straight-line basis for short-term investments and on an effective interest method for long-term investments.

Interest income is determined on the basis of the interest accrued, adjusted for amortization of premium or discount. Variable rate bonds and floating rate notes earn interest at coupon rates that fluctuate at specific time intervals. The interest rates shown in the Portfolio of Investments for the Income Portfolio and the Ready Reserves Portfolio were the rates in effect on September 30, 2006. Put bonds may be redeemed at the discretion of the holder on specified dates prior to maturity.

Paydown gains and losses on mortgage and asset-backed securities are treated as an adjustment to interest income. For the period ended September 30, 2006, the Income Portfolio recognized a reduction of interest income and a reduction of net realized loss of $1,807 (in thousands). This reclassification has no effect on the net asset value of the Portfolio.

Security and shareholder transactions are accounted for no later than one business day following the trade date. However, for financial reporting purposes, security and shareholder transactions are accounted for on the trade date of the last business day of the reporting period. Realized gains and losses from securities transactions are recognized on the basis of high cost lot sell selection.

Awards from class action litigation may be recorded as a reduction of cost. If the Funds no longer own the applicable securities, the proceeds are recorded as realized gains.

(d) Foreign Currency Translation and Forward Foreign Currency Contracts

The International Growth, International Equity, International Small Cap Growth, Emerging Markets Growth, Institutional International Growth and Institutional International Equity Portfolios may invest in securities denominated in foreign currencies. As such, assets and liabilities denominated in foreign currencies are translated into U.S. dollar amounts at the current exchange rate on the date of valuation. The values of foreign investments, open foreign currency forward contracts, and cash denominated in foreign currencies are translated into U.S. dollars using a spot market rate of exchange as of the time of the determination of each Fund’s NAV, typically 4:00 p.m. Eastern time on days when there is regular trading on the New York Stock Exchange. Payables and receivables for securities transactions, dividends, interest income and tax reclaims are translated into U.S. dollars using a spot market rate of exchange as of 4:00 p.m. Eastern time. Settlement of purchases and sales and dividend and interest receipts are translated into U.S. dollars using a spot market rate of exchange as of 11:00 a.m. Eastern time.

The Portfolios may enter into foreign currency forward contracts (1) as a means of managing the risks associated with changes in the exchange rates for the purchase or sale of a specific amount of a particular foreign currency, and (2) to hedge the value, in U.S. dollars, of portfolio securities. Gains and losses from foreign currency transactions associated with purchases and sales of investments and foreign currency forward contracts are included with the net realized and unrealized gain or loss on investments. For tax purposes these foreign currency gains and losses are treated as ordinary income.

(e) Income Taxes

Each Portfolio intends to comply with the special provisions of Subchapter M of the Internal Revenue Code available to regulated investment companies and, therefore, no provision for Federal income taxes has been made in the accompanying financial statements since each Portfolio intends to distribute substantially all of its taxable income to its shareholders and be relieved of all Federal income taxes.

On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48 “Accounting for Uncertainty in Income Taxes” (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year. Adoption of FIN 48 is required for fiscal years beginning after December 15, 2006 and is to be applied to all open tax years as of the effective date. At this time, management is evaluating the implications of FIN 48 and its impact in the financial statements has not yet been determined.

The cost of investments for Federal income tax purposes and related gross unrealized appreciation/(depreciation) and net unrealized appreciation/(depreciation) at September 30, 2006 were as follows (in thousands):

Portfolio	Cost of Investments		Gross Unrealized Appreciation		Gross Unrealized Depreciation		Net Unrealized Appreciation/ ( Depreciation )
Growth	$	192,769	$	56,746	$	3,405	$	53,341
Tax-Managed Growth		7,478		1,815		90		1,725
Large Cap Growth		17,197		2,352		433		1,919
Small Cap Growth		1,033,399		159,531		34,449		125,082
Mid Cap Growth Fund		15,714		722		525		197
Small-Mid Cap Growth		75,795		11,116		2,559		8,557
International Growth		4,293,587		1,283,944		72,358		1,211,586
International Equity		232,176		31,242		3,124		28,118
International Small Cap Growth		168,543		13,927		3,931		9,996
Emerging Markets Growth		553,015		87,528		8,567		78,961
Value Discovery		96,946		8,484		674		7,810
Income		307,679		1,550		5,656		($4,106	)
Ready Reserves		1,176,982		—		—		—
Institutional International Growth		1,384,373		405,689		23,373		382,316
Institutional International Equity		481,825		52,344		6,009		46,335

Item 2. Controls and Procedures

(a) The Registrant’s Principal Executive Officer and Principal Financial Officer have concluded that the Registrant’s disclosure controls and procedures are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures.

(b) There was no change in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) that occurred during the Registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting.

Item 3. Exhibits

Separate certifications for the Registrant’s Principal Executive Officer and Principal Financial Officer, as required by Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act of 1940, are attached as exhibit EX-99.CERT.

SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

WILLIAM BLAIR FUNDS
By:	/s/ Marco Hanig
	Marco Hanig, President

Date: November 28, 2006

Pursuant to the requirements of the Securities and Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By:	/s/ Marco Hanig
	Marco Hanig, President (Principal Executive Officer)

Date: November 28, 2006

By:	/s/ Terence M. Sullivan
	Terence M. Sullivan
	Treasurer (Principal Financial Officer)

Date: November 28, 2006