Seeking value throughout worldwide developed and emerging markets

Investment Objective

The Fund’s investment objective is to seek long-term growth of capital.

Investment Process

The Fund invests at least 80% of its total assets in equity securities of companies in the U.S and in developed and emerging countries outside the U.S. The Fund will typically hold between 25 and 35 investments. Equity securities include common stock, preferred and preference stock, depositary receipts and other similar securities.

YTD Return*
-9.60%
Nav*
$9.89, +0.04
Inception
December 15, 2020
Cusip
14951G104
Benchmark
MSCI ACWI
Minimum Investment
$1,000,000
Sales Charge
None
Net Expense Ratio
0.85%
Gross Expense Ratio
3.47%
*As of December 01, 2022
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Contact Us

Research overview

Portfolio managers Joe Gubler and Steve Nguyen discuss fundamental and quantitative research at Causeway.

Portfolio managers

Fundamental Portfolio Manager
Fundamental Portfolio Manager
President
Head of Fundamental Research
Fundamental Portfolio Manager
Chief Executive Officer
Fundamental Portfolio Manager
Fundamental Portfolio Manager
Fundamental Portfolio Manager
Fundamental Portfolio Manager
Fundamental Portfolio Manager
Quantitative Portfolio Manager

Performance

QTD YTD 1 year Since inception
Fund 9.9%-18.8%-16.8%-2.5%
MSCI ACWI 6.1%-20.8%-19.6%-2.1%
QTD YTD 1 year Since inception
Fund 9.9%-18.8%-16.8%-2.5%
MSCI ACWI 6.1%-20.8%-19.6%-2.1%
QTD YTD 1 year Since inception
Fund -10.6%-26.1%-23.1%-7.6%
MSCI ACWI -6.7%-25.3%-20.3%-5.3%
QTD YTD 1 year Since inception
Fund -10.6%-26.1%-23.1%-7.6%
MSCI ACWI -6.7%-25.3%-20.3%-5.3%
20212020
Fund N/AN/A
MSCI ACWI N/AN/A
Fund
MSCI ACWI
20212020
N/AN/A
N/AN/A

Portfolio (as of October 31, 2022)

Benchmark: MSCI ACWI
Asset Allocation
Fund
Stocks 96.5%
Cash 3.5%
Fund Characteristics
Fund Benchmark
No. of holdings 25 2897
Weighted avg. market cap (US $MM) $66,231 $287,241
FY2 price/earnings 11.2 14.0
Price/book value 1.7 2.5
Net assets $3,612,659 -
TOP 10 HOLDINGS
Security Country Percent
Fiserv, Inc. United States 6.1%
Genpact Ltd. United States 5.5%
Ashland Global Holdings, Inc. United States 5.1%
UniCredit S.p.A. Italy 5.0%
Carrefour SA France 5.0%
Alstom SA France 4.9%
SAP SE Germany 4.8%
Citigroup, Inc. United States 4.7%
Enel SpA Italy 4.6%
Rolls-Royce Holdings Plc United Kingdom 4.4%

A “weighted average” measures a characteristic by the market capitalization of each stock. Price/book ratio is the weighted average of the price/book ratios of all the stocks in a portfolio. The P/B ratio of a company is calculated by dividing the market price of its stock by the company’s per-share book value. The price/earnings ratio is the weighted average of the price/earnings ratios of the stocks in a portfolio. The FY2 P/E ratio is a forward P/E ratio using a next-twenty-four months EPS estimate in the denominator.

Holdings are subject to change.

SECTOR WEIGHTS
Sector Fund Benchmark
Information Technology 22.2% 20.9%
Industrials 17.1% 9.8%
Financials 15.9% 14.8%
Materials 14.4% 4.6%
Health Care 9.7% 13.2%
Consumer Staples 5.0% 7.6%
Utilities 4.6% 3.0%
Communication Services 4.2% 6.9%
Consumer Discretionary 3.3% 10.8%
Energy 0.0% 5.8%
Real Estate 0.0% 2.5%
TOP 10 COUNTRIES
Country Fund Benchmark
United States 45.9% 63.0%
France 9.9% 2.8%
Italy 9.6% 0.6%
Switzerland 9.0% 2.5%
United Kingdom 7.9% 3.7%
Germany 4.8% 1.9%
Ireland 3.4% 0.1%
South Korea 2.5% 1.2%
Japan 2.0% 5.2%
Netherlands 1.6% 1.0%
Regional Allocation
  • Europe – other 46.1%
  • North America 45.9%
  • Emerging Asia 2.5%
  • Pacific 2.0%

Commentary (As of October 31, 2022)

Highlights

  • Despite ongoing geopolitical tensions, persistently high inflation, lingering global supply chain constraints (China continues to pursue a zero-Covid policy), and an effort by European governments to shore up natural gas supplies before the onset of winter, global equity markets appreciated in October – likely reflecting rising expectations of a moderation in the pace of interest rate increases by developed market central banks.
  • Strong labor markets and the aforementioned high inflation compelled further interest rate increases from many developed market central banks. We expect the Fed, ECB, and BoE will likely continue to raise interest rates –even though the result of such tightening will likely not be fully reflected in economic data for at least 12 months.
  • We believe valuations for international equities, regardless of region, are increasingly promising for investors with a multi-year investment horizon. We expect meaningful alpha potential from cyclical European equities that incurred waves of selling after Russia’s invasion of Ukraine and from stocks in developed markets afflicted by China’s zero-Covid policy.

Portfolio attribution

The Causeway Concentrated Equity Fund ("Fund") outperformed the Index during the month, due primarily to stock selection. Fund holdings in the software & services, banks, and food & staples retailing industry groups, as well as an overweight position in the capital goods industry group and an underweight position in the retailing industry group, contributed to relative performance. Holdings in the insurance, pharmaceuticals & biotechnology, and semiconductors & semi equipment industry groups, along with an underweight position in the energy and technology hardware & equipment industry groups, offset some of the outperformance compared to the Index. The top contributor to return was rolling stock, signaling, & services provider for the rail industry, Alstom SA (France). Other notable contributors included banking & financial services company, UniCredit S.p.A. (Italy), business software & services provider, SAP SE (Germany), consumer retailer, Carrefour SA (France), and jet engine manufacturer, Rolls-Royce Holdings Plc (United Kingdom). The largest detractor was life insurer, Prudential Plc (United Kingdom). Additional notable detractors included products & services provider for the electronic components industry, SK hynix, Inc. (South Korea), robotics manufacturer, FANUC Corp. (Japan), technology conglomerate, Alphabet, Inc. (United States), and pharmaceuticals & biotechnology company, Roche Holding AG (Switzerland).

Investment outlook

We believe that valuations for international equities, regardless of region, are increasingly promising for investors with a multi-year investment horizon. Currency slippage versus the US dollar should reverse, at least in part, as the interest rate differential between the US and Europe (for example) closes over the upcoming 12-18 months. Cyclical European equities incurred waves of selling after Russia’s invasion of Ukraine in February. That investor exodus has brought some, in our view, world-class companies, in sectors such as materials, industrials, and consumer discretionary, into our buying range. We expect another area of meaningful alpha potential to come from developed markets stocks afflicted by China’s zero-Covid policy. We used the pessimism from delayed China reopening to gain exposure to, in our view, a broad array of competitively well-positioned companies that generate 10% or more of their respective revenues from the Chinese market. Typical of what Causeway seeks for its holdings, these companies have not wasted time while their China sales are weak; they have implemented operational restructuring to improve efficiency and lower costs in anticipation of a return to revenue expansion. Reopening, albeit gradual and without a precise timeframe, is inevitable in our view. Governments that asphyxiate their economies and cause social instability typically do not remain in power. We are convinced that China is no exception.

Distributions

Dividends Short-term capital gains Long-term capital gains
2021 $0.1201 $0.6756 $0.0000
2020 $0.0007 $0.0000 $0.0000

Distributions are per share. Distribution amounts are based on gains and losses realized and income earned by the Fund through October 31 (or earlier under certain circumstances).

Documents

Fund information:

Forms: