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*
+12.61%
Nav*
$11.43, -0.04
Inception
December 15, 2020
Cusip
14951G203
Benchmark
MSCI ACWI
Minimum Investment
$5,000
Sales Charge
None
Net Expense Ratio
1.10%
Gross Expense Ratio
1.95%
*As of July 30, 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 3.9%10.4%12.1%
MSCI ACWI 7.5%12.6%14.9%
QTD YTD Since inception
Fund 3.9%10.4%12.1%
MSCI ACWI 7.5%12.6%14.9%
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 June 30, 2021)

Benchmark: MSCI ACWI
Asset Allocation
Fund
Stocks 97.4%
Cash 2.6%
Fund Characteristics
Fund Benchmark
No. of holdings 29 2975
Weighted avg. market cap (US $MM) $120,520 $297,186
FY2 price/earnings 14.1 17.6
Price/book value 2.1 3.1
Net assets $1,200,206 -
TOP 10 HOLDINGS
Security Country Percent
Alphabet Inc. United States 5.6%
Sanofi France 5.1%
Fiserv, Inc. United States 4.7%
Ashland Global Holdings, Inc. United States 4.6%
Roche Holding AG Switzerland 4.6%
Genpact Ltd. United States 4.4%
Samsung Electronics Co., Ltd. South Korea 4.3%
Exelon Corp. United States 4.2%
Novartis AG Switzerland 4.1%
Oracle Corp. United States 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 25.3% 21.9%
Health Care 21.9% 11.6%
Financials 15.1% 14.1%
Materials 9.9% 4.9%
Utilities 8.7% 2.6%
Industrials 5.7% 9.9%
Communication Services 5.6% 9.4%
Consumer Discretionary 5.3% 12.7%
Consumer Staples 0.0% 6.9%
Energy 0.0% 3.4%
Real Estate 0.0% 2.6%
TOP 10 COUNTRIES
Country Fund Benchmark
United States 52.6% 58.7%
Switzerland 11.2% 2.5%
France 8.9% 2.9%
Germany 5.2% 2.4%
Italy 5.0% 0.6%
South Korea 4.3% 1.7%
Spain 2.6% 0.6%
Netherlands 2.6% 1.1%
United Kingdom 2.5% 3.7%
Japan 2.5% 5.9%
Regional Allocation
  • North America 52.6%
  • Europe – other 38.0%
  • Emerging Asia 4.3%
  • Pacific 2.5%

Commentary (As of June 30, 2021)

Highlights

  • Developed market equities largely delivered positive returns in local currency terms during the month of June as vaccination campaigns facilitated further easing of Covid-19-related economic restrictions. Despite the progress, the Delta variant of the virus and differing vaccination rates across geographies have resulted in an uneven recovery.
  • In order to rebuild inventories, we expect business capital expenditures to increase this year. Combined with massive fiscal spending, this should propel further economic gains.
  • With delayed and uneven opening of economies globally, several of the, in our view, high quality aerospace, aviation, travel, and hospitality-oriented stocks have only partially reflected the recovery ahead.

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, materials, and technology hardware & equipment industry groups, along with an overweight position in the insurance and utilities industry groups, detracted from relative performance. Holdings in the media & entertainment industry group, as well as an underweight position in the food beverage & tobacco, diversified financials, telecommunication services, and transportation industry groups, offset some of the underperformance compared to the Index. The largest detractor was specialty chemicals manufacturer, Ashland Global Holdings, Inc. (United States). Additional notable detractors included financial services technology company, Fiserv, Inc. (United States), insurer, AXA SA (France), retail bank, CaixaBank SA (Spain), and jet engine manufacturer, Rolls-Royce Holdings Plc (United Kingdom). The top contributor to return was pharmaceuticals & biotechnology company, Roche Holding AG (Switzerland). Other notable contributors included technology conglomerate, Alphabet Inc. (United States), HVAC manufacturer, Carrier Global Corp.(United States), pharmaceutical producer, Novartis AG (Switzerland), and medical technology provider, Hill-Rom Holdings (United States).

Investment outlook

Despite the past 15-month surge in equity markets, amplified by the recovery in cyclical stocks from November 2020 vaccine announcements, we believe attractive valuations remain. With delayed and uneven opening of economies globally, several of the, in our view, high quality aerospace, aviation, travel, and hospitality-oriented stocks have only partially reflected the recovery ahead. We observe significant pent up demand for such services, yet travelers still face uncertainty in certain locations and face burdensome Covid-19-related protocols. As vaccinations proliferate, we believe even the most cautious of governments will likely open their respective borders, compelled by economic necessity. In addition to late-stage pandemic stocks, we are also finding what we believe is market underpricing in companies undergoing operational restructuring and in some traditionally defensive sectors such as utilities (those in transition to renewable energy) and healthcare (European pharmaceutical giants with potentially valuable drug pipelines). Companies in the defensive categories tend to generate cash flows surplus to their operating and investment needs (free cash flow), and thus can pay shareholders to wait for prices to reflect what we estimate will be good news. We believe companies less dependent on earnings realization far out in the future should provide a natural hedge in the portfolio to the prospect of rising interest rates, a function of bond markets reflecting economic growth and inflation. If history is any guide, the side effect of higher discount rates and bond market competition should translate into compression of the most speculative of market multiples.

Distributions

Dividends Short-term capital gains Long-term capital gains
2020 $0.0000 $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: