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*
-12.25%
Nav*
$9.60, -0.03
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 August 05, 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 -11.9%-17.4%-13.4%-1.9%
MSCI ACWI -15.5%-20.0%-15.4%-1.8%
QTD YTD 1 year Since inception
Fund -11.9%-17.4%-13.4%-1.9%
MSCI ACWI -15.5%-20.0%-15.4%-1.8%
QTD YTD 1 year Since inception
Fund -11.9%-17.4%-13.4%-1.9%
MSCI ACWI -15.5%-20.0%-15.4%-1.8%
QTD YTD 1 year Since inception
Fund -11.9%-17.4%-13.4%-1.9%
MSCI ACWI -15.5%-20.0%-15.4%-1.8%
20212020
Fund N/AN/A
MSCI ACWI N/AN/A
Fund
MSCI ACWI
20212020
N/AN/A
N/AN/A

Portfolio (as of June 30, 2022)

Benchmark: MSCI ACWI
Asset Allocation
Fund
Stocks 97.4%
Cash 2.6%
Fund Characteristics
Fund Benchmark
No. of holdings 25 2895
Weighted avg. market cap (US $MM) $82,757 $277,876
FY2 price/earnings 10.3 13.3
Price/book value 1.7 2.5
Net assets $3,507,971 -
TOP 10 HOLDINGS
Security Country Percent
Genpact Ltd. United States 5.6%
Fiserv, Inc. United States 5.2%
Alstom SA France 5.2%
Ashland Global Holdings, Inc. United States 5.2%
Berry Global Group United States 4.9%
Essent Group Ltd. United States 4.9%
Rolls-Royce Holdings Plc United Kingdom 4.8%
Alphabet, Inc. United States 4.8%
UniCredit S.p.A. Italy 4.6%
SAP SE Germany 4.6%

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 23.6% 20.9%
Financials 19.3% 14.5%
Industrials 14.5% 9.4%
Materials 13.9% 4.8%
Health Care 11.3% 13.0%
Consumer Discretionary 5.4% 11.1%
Communication Services 4.8% 7.9%
Utilities 4.5% 3.2%
Real Estate 0.0% 2.8%
Consumer Staples 0.0% 7.6%
Energy 0.0% 5.0%
TOP 10 COUNTRIES
Country Fund Benchmark
United States 50.2% 60.6%
Switzerland 11.2% 2.6%
Italy 9.1% 0.6%
United Kingdom 9.0% 3.9%
France 5.2% 2.7%
Germany 4.6% 1.9%
South Korea 4.3% 1.3%
Japan 2.2% 5.4%
Netherlands 1.6% 1.0%
New Zealand 0.0% 0.0%
Regional Allocation
  • North America 50.2%
  • Europe – other 40.6%
  • Emerging Asia 4.3%
  • Pacific 2.2%

Commentary (As of June 30, 2022)

Highlights

  • Equity prices continued to decline in June as accelerated central bank tightening and recession fears weighed on the outlook for economic growth.
  • Exacerbated by Russia’s weaponization of energy and agricultural products, fuel and food costs are rising in most regions globally, placing upward pressure on wages. Short-term interest rates may need to rise substantially—with the median US Federal Reserve Board member expecting to raise rates to 3.8% by the end of next year—to quell inflationary pressures, even with some alleviation of supply chain disruptions. Monetary tightening typically impacts the global economy with a lag; however, signs of economic softening have already emerged.
  • Some of the portfolio’s most promising companies have not yet fully recovered from the pandemic’s suppression of global travel, leisure, and hospitality, as well as mobility restrictions in China and Hong Kong. We believe pent-up demand for these services bodes well for a future recovery in their share prices.

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, banks, technology hardware & equipment, capital goods, and utilities industry groups detracted from relative performance. Holdings in the media & entertainment and materials industry groups, as well as an underweight position in the semiconductors & semi equipment, energy, and diversified financials industry groups, offset some of the underperformance compared to the Index. The largest detractor was travel & tourism technology company, Sabre Corp. (United States). Additional notable detractors included rolling stock, signaling, & services provider for the rail industry, Alstom SA (France), banking & financial services company, UniCredit S.p.A. (Italy), electronic equipment manufacturer, Samsung Electronics Co., Ltd. (South Korea), and electric, gas & renewables power generation & distribution company, Enel SpA (Italy). The top contributor to return was electric utility provider, RWE AG (Germany). Other notable contributors included pharmaceuticals & biotechnology company, Roche Holding AG (Switzerland), robotics manufacturer, FANUC Corp. (Japan), financial services company, Zurich Insurance Group (Switzerland), and clinical laboratory, Quest Diagnostics, Inc. (United States).

Investment outlook

As monetary authorities raise interest rates and accelerate quantitative tightening, we believe consumer and industrial demand will soften and corporate earnings forecasts will decline. In a notable departure from the post-GFC years, massive excess private sector bank reserves suggest, in our view, that the Fed will need to tighten monetary policy considerably more than market participants are currently expecting to combat inflation. As recession looms, we believe companies in sectors such as healthcare, consumer staples, and utilities may prove defensive. These are likely areas we will use to fund more cyclical portfolio exposure as economies weaken and valuations of high-quality cyclicals become more compelling. Some of the portfolio’s most promising companies have not yet fully recovered from the pandemic’s suppression of global travel, leisure, and hospitality, as well as mobility restrictions in China and Hong Kong. We believe pent-up demand for these services bodes well for a future recovery in their share prices. The Russian invasion of Ukraine also precipitated a sell-off in many global banks. Historically, bank stocks weaken in advance of economic slowing and recover sharply in advance of economic recovery. We believe several of these banks are well-capitalized and are attractively valued, implying compelling upside potential. While we wait for the market to discount the recovery, these banks may be positioned to return capital to shareholders in the form of share buybacks and dividends, which are particularly attractive in an environment where rising bond yields are weighing heavily on asset prices.

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: