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*
+9.46%
Nav*
$11.11, -0.30
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
1.70%
*As of November 26, 2021
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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 Since inception
Fund 1.7%13.0%14.7%
MSCI ACWI 5.1%17.2%19.6%
QTD YTD Since inception
Fund 1.7%13.0%14.7%
MSCI ACWI 5.1%17.2%19.6%
Since inception
Fund 12.8%
MSCI ACWI 13.8%
Since inception
Fund 12.8%
MSCI ACWI 13.8%
2020
Fund N/A
MSCI ACWI N/A
Fund
MSCI ACWI
2020
N/A
N/A

Portfolio (as of October 31, 2021)

Benchmark: MSCI ACWI
Asset Allocation
Fund
Stocks 97.4%
Cash 2.6%
Fund Characteristics
Fund Benchmark
No. of holdings 27 2975
Weighted avg. market cap (US $MM) $114,227 $349,757
FY2 price/earnings 13.8 17.6
Price/book value 2.1 3.1
Net assets $4,570,698 -
TOP 10 HOLDINGS
Security Country Percent
Alphabet, Inc. United States 5.7%
Essent Group United States 5.1%
Ashland Global Holdings, Inc. United States 5.1%
Sanofi France 4.8%
Genpact Ltd. United States 4.7%
Roche Holding AG Switzerland 4.6%
Las Vegas Sands Corp. United States 4.5%
AXA SA France 4.5%
Fiserv, Inc. United States 4.3%
Samsung Electronics Co., Ltd. South Korea 4.0%

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 19.4% 22.7%
Financials 17.7% 14.4%
Health Care 15.8% 11.5%
Materials 14.4% 4.6%
Industrials 9.9% 9.6%
Utilities 7.2% 2.6%
Consumer Discretionary 7.2% 12.8%
Communication Services 5.7% 9.0%
Real Estate 0.0% 2.6%
Consumer Staples 0.0% 6.6%
Energy 0.0% 3.6%
TOP 10 COUNTRIES
Country Fund Benchmark
United States 50.8% 60.6%
France 12.5% 2.9%
Switzerland 10.7% 2.5%
Germany 5.3% 2.2%
Italy 5.1% 0.6%
South Korea 4.0% 1.4%
United Kingdom 3.8% 3.6%
Spain 2.6% 0.6%
Netherlands 2.4% 1.3%
Japan 0.1% 5.7%
Regional Allocation
  • North America 50.8%
  • Europe – other 42.4%
  • Emerging Asia 4.0%
  • Pacific 0.1%

Commentary (As of October 31, 2021)

Highlights

  • Global equities regained momentum in October as progress in vaccination campaigns appeared to have assuaged investor concerns over new mobility restrictions.
  • Though the company management teams we speak with are generally reporting higher input costs, we believe many supply chain issues should be resolved by mid-2022. In our view, if labor retains bargaining power, this may raise unit labor costs. We believe that the level at which inflation expectations get anchored should have the biggest impact on whether inflation is transitory or more permanent.
  • For many of our portfolio companies, we believe the earnings growth outlook is underpinned by pent up demand, strong balance sheets, and structurally lower costs than those prior to the pandemic.

Portfolio attribution

The Causeway Concentrated Equity Fund ("Fund") underperformed the Index during the month, due primarily to stock selection. Fund holdings in the software & services, pharmaceuticals & biotechnology, banks, and capital goods industry groups, along with an underweight position in the automobiles & components industry group, detracted from relative performance. Holdings in the media & entertainment, utilities, and insurance industry groups, as well as an underweight position in the telecommunication services and food beverage & tobacco industry groups, offset some of the underperformance compared to the Index. The largest detractor was Takeda Pharmaceutical Co., Ltd. (Japan). Additional notable detractors included travel & tourism technology company, Sabre Corp. (United States), financial services technology company, Fiserv, Inc. (United States), retail bank, CaixaBank SA (Spain), and electronic equipment manufacturer, Samsung Electronics Co., Ltd. (South Korea). The top contributor to return was technology conglomerate, Alphabet, Inc. (United States). Other notable contributors included mortgage insurance provider, Essent Group (United States), specialty chemicals manufacturer, Ashland Global Holdings, Inc. (United States), utilities provider, Exelon Corp. (United States), and casino & resort company, Las Vegas Sands Corp. (United States).

Investment outlook

Although equity markets reached new highs during the month, we continue to find plenty of opportunities in undervalued stocks. We aim to identify companies poised to deliver improved earnings that can potentially rerate upwards as investors recognize the positive transformation these management teams have delivered. As central banks embark on a monetary tightening cycle to combat inflationary pressures, we expect rising discount rates to act as a headwind for the high-flying valuations of long-duration growth stocks. This should translate into an attractive environment for fundamental, value-oriented research. We have positioned our clients’ portfolios to take advantage of what is, in our view, mispricing in stocks heavily exposed to Covid (e.g., travel, leisure, aerospace, and aviation), balanced with companies in more defensive and cash flow generative industries such as pharmaceutical and utilities. In recent months, we have also increased the portfolio’s energy exposure. Many European integrated oil companies have rationed capital expenditures, diverting investments away from exploration and production towards renewables, leading to a dearth of supply amid the current surging demand. We, therefore, expect oil and gas prices to remain elevated and potentially rise further this winter. For many of our portfolio companies, we believe the earnings growth outlook is underpinned by pent up demand, strong balance sheets, and structurally lower costs than those prior to the pandemic. With many companies resuming dividend payments and share buybacks, we believe income should bolster the total return profile of portfolio holdings in the remainder of 2021 and into 2022.

Distributions

Dividends Short-term capital gains Long-term capital gains
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: