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*
-24.13%
Nav*
$8.30, -0.23
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 September 23, 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 0.7%-16.8%-17.7%-1.3%
MSCI ACWI 3.1%-17.5%-15.5%0.1%
QTD YTD 1 year Since inception
Fund 0.7%-16.8%-17.7%-1.3%
MSCI ACWI 3.1%-17.5%-15.5%0.1%
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 August 31, 2022)

Benchmark: MSCI ACWI
Asset Allocation
Fund
Stocks 97.1%
Cash 2.9%
Fund Characteristics
Fund Benchmark
No. of holdings 25 2898
Weighted avg. market cap (US $MM) $81,045 $311,851
FY2 price/earnings 11.2 14.0
Price/book value 1.8 2.6
Net assets $3,032,359 -
TOP 10 HOLDINGS
Security Country Percent
Fiserv, Inc. United States 5.9%
Genpact Ltd. United States 5.2%
Samsung Electronics Co., Ltd. South Korea 4.9%
Carrefour SA France 4.8%
Ashland Global Holdings, Inc. United States 4.8%
Sabre Corp. United States 4.8%
Berry Global Group United States 4.8%
UniCredit S.p.A. Italy 4.8%
Alstom SA France 4.8%
Alphabet, Inc. United States 4.7%

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 27.6% 21.4%
Materials 15.2% 4.6%
Financials 14.1% 14.3%
Industrials 13.8% 9.6%
Health Care 9.7% 12.2%
Consumer Staples 4.8% 7.5%
Communication Services 4.7% 7.6%
Utilities 3.9% 3.2%
Consumer Discretionary 3.3% 11.6%
Energy 0.0% 5.2%
Real Estate 0.0% 2.7%
TOP 10 COUNTRIES
Country Fund Benchmark
United States 48.4% 61.8%
Switzerland 9.8% 2.5%
France 9.6% 2.7%
Italy 8.7% 0.5%
United Kingdom 7.8% 3.7%
South Korea 4.9% 1.3%
Germany 4.1% 1.8%
Japan 2.3% 5.5%
Netherlands 1.6% 1.0%
New Zealand 0.0% 0.0%
Regional Allocation
  • North America 48.4%
  • Europe – other 41.5%
  • Emerging Asia 4.9%
  • Pacific 2.3%

Commentary (As of August 31, 2022)

Highlights

  • Equity markets declined again in August in response to central banks’ commitment to tamp down inflation and growing concerns about the risks to global economic activity.
  • We currently expect inflation in the developed world to remain well above its near three-decades-long average for some time to come. The Covid pandemic highlighted the vulnerability of long and complex supply chains, and costly investment will be required as companies and their governments attempt to onshore critical production. As transitory inflation pressures have risen, stickier wage expectations will likely embed lasting inflationary pressures into developed economies.
  • In our investable universe, we believe the best-positioned industrials, materials, financials, and consumer discretionary companies—those with, in our view, balance sheet strength and excellent management teams—should lead markets upward in the next stage of the economic cycle.

Portfolio attribution

The Causeway Concentrated Equity Fund ("Fund") underperformed the Index during the month, due primarily to stock selection. Fund holdings in the capital goods, insurance, utilities, and media & entertainment industry groups, along with an underweight position in the energy industry group, detracted from relative performance. Holdings in the software & services and pharmaceuticals & biotechnology industry groups, as well as an overweight position in the materials and food & staples retailing industry groups and an underweight position in the semiconductors & semi equipment industry group, offset some of the underperformance compared to the Index. The largest detractor was jet engine manufacturer, Rolls-Royce Holdings Plc (United Kingdom). Additional notable detractors included rolling stock, signaling, & services provider for the rail industry, Alstom SA (France), life insurer, Prudential Plc (United Kingdom), business software & services provider, SAP SE (Germany), and technology conglomerate, Alphabet, Inc. (United States). The top contributor to return was travel & tourism technology company, Sabre Corp. (United States). Other notable contributors included specialty chemicals manufacturer, Ashland Global Holdings, Inc. (United States), casino & resort company, Las Vegas Sands Corp. (United States), banking & financial services company, UniCredit S.p.A. (Italy), and financial services company, Zurich Insurance Group (Switzerland).

Investment outlook

Inflationary pressures, rising interest rates, and concerns about a slowdown in global economic activity have hampered equity returns this year. The ongoing weakness in the Chinese economy just adds to the negative ramifications for the earnings of companies and industries globally. We believe central banks (other than the Bank of China) should continue raising interest rates and draining monetary liquidity from their respective financial systems, which will likely add downward pressures to valuation multiples. For European cyclicals in particular, rising inflation, monetary tightening, and currency weakness have weighed heavily on stock prices. However, we believe valuations are quite low, likely already discounting a recession. In our investable universe, we believe the best-positioned industrials, materials, financials, and consumer discretionary companies—those with, in our view, balance sheet strength and excellent management teams—should lead markets upward in the next stage of the economic cycle. Historically, cyclicals outperform as markets begin to discount recovery. We expect management teams of our portfolio companies to amplify profitability via leaner operations and greater efficiency (operational restructuring), creating the potential for even more uplift in their share 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: