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*
+12.32%
Nav*
$11.40, -0.08
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 September 17, 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 6.0%17.0%18.8%
MSCI ACWI 3.3%16.2%18.6%
QTD YTD Since inception
Fund 6.0%17.0%18.8%
MSCI ACWI 3.3%16.2%18.6%
Since inception
Fund 12.1%
MSCI ACWI 14.9%
Since inception
Fund 12.1%
MSCI ACWI 14.9%
2020
Fund N/A
MSCI ACWI N/A
Fund
MSCI ACWI
2020
N/A
N/A

Portfolio (as of August 31, 2021)

Benchmark: MSCI ACWI
Asset Allocation
Fund
Stocks 95.1%
Cash 4.9%
Fund Characteristics
Fund Benchmark
No. of holdings 27 2964
Weighted avg. market cap (US $MM) $119,607 $333,319
FY2 price/earnings 14.4 17.7
Price/book value 2.2 3.1
Net assets $4,688,348 -
TOP 10 HOLDINGS
Security Country Percent
Alphabet, Inc. United States 5.4%
Las Vegas Sands Corp. United States 5.0%
Fiserv, Inc. United States 4.9%
Essent Group United States 4.9%
Sanofi France 4.8%
Ashland Global Holdings, Inc. United States 4.7%
Genpact Ltd. United States 4.7%
Roche Holding AG Switzerland 4.6%
Exelon Corp. United States 4.4%
Samsung Electronics Co., Ltd. South Korea 4.3%

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 20.6% 22.6%
Health Care 20.0% 11.8%
Financials 17.0% 14.1%
Materials 9.6% 4.9%
Utilities 8.8% 2.7%
Consumer Discretionary 7.6% 12.2%
Industrials 6.2% 9.8%
Communication Services 5.4% 9.4%
Consumer Staples 0.0% 6.8%
Energy 0.0% 3.1%
Real Estate 0.0% 2.6%
TOP 10 COUNTRIES
Country Fund Benchmark
United States 49.9% 59.8%
Switzerland 10.9% 2.5%
France 8.9% 2.9%
Germany 5.3% 2.4%
Italy 5.0% 0.6%
South Korea 4.3% 1.6%
United Kingdom 3.2% 3.6%
Spain 2.7% 0.6%
Netherlands 2.4% 1.3%
Japan 2.4% 5.8%
Regional Allocation
  • North America 49.9%
  • Europe – other 38.4%
  • Emerging Asia 4.3%
  • Pacific 2.4%

Commentary (As of August 31, 2021)

Highlights

  • Equities marched higher again in August, spurred by continuing ultra-loose monetary conditions, a likely multi-trillion-dollar US fiscal spending boost, and evidence of global economic recovery. Despite the increase in Covid cases linked to the spread of the Delta variant, investors appear optimistic that any impact will likely disrupt supply chains rather than spur the reinstatement of economically devastating lockdowns.
  • Strong global economic data in August confirmed a further normalization of activity in the wake of Covid lockdowns. In China, regulatory actions continued to dominate headlines. In our view, increased regulations in certain industries are long overdue. As long as they remain well-established, consistent, and transparent, our belief is that stronger standards in the country should ultimately benefit stakeholders.
  • We believe undervalued stocks will attract more buyers as the cost of money (aka interest rates) rise to more normal levels in most developed countries, reflecting economic recovery and fiscal stimulus. Companies generating solid cash flow and margins, with excellent competitive positioning, attract our attention in this environment.

Portfolio attribution

The Causeway Concentrated Equity Fund ("Fund") outperformed the Index during the month, due primarily to stock selection. Fund holdings in the capital goods, insurance, materials, consumer services, and health care equipment & services industry groups contributed to relative performance. Holdings in the technology hardware & equipment, pharmaceuticals & biotechnology, and software & services industry groups, along with an underweight position in the semiconductors & semi equipment and diversified financials industry groups, offset some of the outperformance compared to the Index. The top contributor to return was jet engine manufacturer, Rolls-Royce Holdings Plc (United Kingdom). Other notable contributors included technology conglomerate, Alphabet, Inc. (United States), specialty chemicals manufacturer, Ashland Global Holdings, Inc.(United States), insurer, AXA SA (France), and casino & resort company, Las Vegas Sands Corp. (United States). The largest detractor was electronic equipment manufacturer, Samsung Electronics Co., Ltd. (South Korea). Additional notable detractors included travel & tourism technology company, Sabre Corp. (United States), electric, gas and renewables power generation and distribution company, Enel SpA (Italy), semiconductor manufacturer, Broadcom Ltd. (United States), and paints & coatings producer, Akzo Nobel (Netherlands).

Investment outlook

The rise of the Delta variant portends enduring uncertainty on the timing to reach full normalization. As a result, we are interested in economically cyclical companies with, in our view, strong balance sheets focused on cutting costs. As it relates to companies exposed to travel, leisure, and hospitality, in particular, we find meaningful differentiation amongst companies. Several are exhibiting high cash burn rates, while others are approaching breakeven. We are most interested in the latter, and we engage in rigorous fundamental research to scrutinize which firms may be underappreciated in the market yet poised for, based on our analysis, greater profitability when revenues recover. Furthermore, we believe the rapid pace of change in the economy—for example, from long-dated green initiatives or supplier shifts—could lead to structurally higher earnings in this economic cycle for certain industries. The premium for growth stocks over value stocks narrowed in the wake of vaccine announcements in the fourth quarter of 2020, but overall, it remains significantly higher relative to history in a market awash with liquidity. We believe undervalued stocks will attract more buyers as the cost of money (aka interest rates) rise to more normal levels in most developed countries, reflecting economic recovery and fiscal stimulus. Companies generating solid cash flow and margins, with excellent competitive positioning, attract our attention in this environment.

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: