On March 31, 2009, the U.S. Treasury announced a second extension of the Temporary Guarantee Program for Money Market Funds until September 18, 2009, to support ongoing stability in the financial markets. The William Blair Ready Reserves Fund has elected to obtain extended coverage under the program.

The program provides coverage to money-market fund shareholders for the number of shares invested in the Fund at the close of business on September 19, 2008. Under the program, the temporary guarantee will be triggered if a participating fund's share value declines to less than $1.00, and a decision is made to liquidate by the fund's board. The Treasury would cover any shortfall between the share price at time of liquidation and $1.00 per share. The program has been extended through September 18, 2009, at which time the program will terminate according to its original terms. 

The U.S. Treasury Temporary Guarantee Program provides a guarantee to Ready Reserves Fund shareholders based on the number of shares invested in the Fund at the close of business on September 19, 2008. Any increase in the number of shares an investor holds in the Fund after the close of business on that day will not be guaranteed. If a customer closes his or her account with the Fund, any future investment in the Fund through a new account will not be guaranteed. If the number of Fund shares an investor holds fluctuates over the period, the investor will be covered for either the number of shares held as of the close of business on September 19, 2008, or the current amount, whichever is less. The U.S. Treasury’s Guaranty Program expires on September 18, 2009.  The Fund bears the costs of participating in the Program, which means that all shareholders, including those whose share balances are not covered by the Program, bear the costs of the Program.

At William Blair & Company, we pride ourselves on the stringent credit standards we apply to the management of the Ready Reserves Fund. The Ready Reserves Fund has continued to meet its stated objectives of current income, a stable share price, and daily liquidity throughout the recent unprecedented turmoil; and we remain confident in the credit quality, diversification and liquidity of the Ready Reserves Fund. In addition, the Fund is rated AAAm by Standard & Poor’s, the highest credit quality rating given to money market funds. Nevertheless, we believe the program may provide increased confidence to our shareholders given these difficult markets.