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*
+12.83%
Nav*
$10.82, +0.11
Inception
December 15, 2020
Cusip
14951G203
Benchmark
MSCI ACWI
Minimum Investment
$5,000
Sales Charge
None
Net Expense Ratio
1.10%
Gross Expense Ratio
3.72%
*As of February 02, 2023
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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 11.3%11.3%-0.6%7.0%
MSCI ACWI 7.2%7.2%-7.5%3.1%
QTD YTD 1 year Since inception
Fund 11.3%11.3%-0.6%7.0%
MSCI ACWI 7.2%7.2%-7.5%3.1%
QTD YTD 1 year Since inception
Fund 19.6%-11.7%-11.7%1.8%
MSCI ACWI 9.9%-18.0%-18.0%-0.2%
QTD YTD 1 year Since inception
Fund 19.6%-11.7%-11.7%1.8%
MSCI ACWI 9.9%-18.0%-18.0%-0.2%
202220212020
Fund -11.7%15.8%N/A
MSCI ACWI -18.0%19.0%N/A
Fund
MSCI ACWI
202220212020
-11.7%15.8%N/A
-18.0%19.0%N/A

Portfolio (as of December 31, 2022)

Benchmark: MSCI ACWI
Asset Allocation
Fund
Stocks 96.9%
Cash 3.1%
Fund Characteristics
Fund Benchmark
No. of holdings 26 2885
Weighted avg. market cap (US $MM) $69,282 $246,816
FY2 price/earnings 11.6 14.2
Price/book value 1.6 2.5
Net assets $1,021,724 -
TOP 10 HOLDINGS
Security Country Percent
Fiserv, Inc. United States 5.6%
Enel SpA Italy 5.1%
UniCredit S.p.A. Italy 5.1%
Berry Global Group United States 5.0%
Prudential Plc United Kingdom 5.0%
Genpact Ltd. United States 4.9%
Citigroup, Inc. United States 4.8%
Carrefour SA France 4.8%
SAP SE Germany 4.7%
Leidos Holdings, Inc. United States 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 29.5% 20.0%
Financials 17.5% 15.2%
Industrials 11.1% 10.2%
Materials 10.1% 5.0%
Health Care 9.6% 13.4%
Communication Services 6.5% 6.8%
Utilities 5.1% 3.2%
Consumer Staples 4.8% 7.7%
Consumer Discretionary 2.7% 10.4%
Energy 0.0% 5.6%
Real Estate 0.0% 2.6%
TOP 10 COUNTRIES
Country Fund Benchmark
United States 46.3% 60.4%
Italy 10.2% 0.6%
Switzerland 8.9% 2.6%
United Kingdom 8.9% 3.9%
Japan 5.1% 5.6%
France 4.8% 3.0%
Germany 4.7% 2.1%
South Korea 3.8% 1.3%
Ireland 2.7% 0.2%
Netherlands 1.6% 1.1%
Regional Allocation
  • North America 46.3%
  • Europe – other 41.7%
  • Pacific 5.1%
  • Emerging Asia 3.8%

Commentary (As of December 31, 2022)

Highlights

  • International equity markets rose sharply in the fourth quarter, on easing inflation concerns and optimism for China’s continued reopening. Boosted by a weaker dollar, December’s returns were positive, although comparatively modest, tempered by disappointing economic data and rising bond yields.
  • Recession in major world economies is emerging as a top concern for the coming year. Inflationary pressures should abate in the next few quarters, responding to the delayed impact of rising interest rates in most major economies globally. Re-opening of the Chinese economy should offset some of the global growth headwinds.
  • Lower valuations and relatively greater cyclicality in non-US equity markets should give non-US markets a chance to again outperform the US. We remain focused on identifying management teams able to increase free cash flow, boost dividends and reward shareholders with cash or share buybacks.

Portfolio attribution

The Causeway Concentrated Equity Fund (“Fund”), on a net asset value basis, outperformed the Index during the month. On a gross return basis, Fund holdings in the insurance and software & services industry groups, as well as an underweight position in the automobiles & components industry group, contributed to relative performance. Holdings in the media & entertainment industry group, along with an underweight position in the food beverage & tobacco and household & personal products industry groups, offset some of the outperformance compared to the Index. The top contributor to return was life insurer, Prudential Plc (United Kingdom). Other notable contributors included banking & financial services company, UniCredit S.p.A. (Italy), and business services provider, Concentrix Corp. (United States). The largest detractor was technology conglomerate, Alphabet, Inc. (United States). Additional notable detractors included global financial services giant, Citigroup, Inc. (United States), and products & services provider for the electronic components industry, SK hynix, Inc. (South Korea).

Investment outlook

Weak earnings and a drain of global liquidity – the opposite of the post-GFC bull market - do not bode well for equity markets in the next several months. We anticipate margins coming under pressures as higher costs flow through income statements. Nominal revenue growth may remain elevated, but real earnings growth in certain sectors appears vulnerable in our view. Lower valuations and relatively greater cyclicality in non-US equity markets should give non-US markets a chance to again outperform the US. Attractively valued cyclical stocks may deliver relatively good returns in the second half of 2023 as global markets discount post-recession recovery. Further monetary tightening should favor stocks with reasonable valuations and abundant financial strength over those where earnings expectations and multiples still appear too high. Barring another oil supply shock, we believe energy is unlikely to lead the markets to the same extent as in 2022 as global oil & gas demand –besides China – wanes. The end of the era of free money combined with sharply rising short-term interest rates may expose weaknesses in the global financial system. We remain focused on identifying management teams able to increase free cash flow, boost dividends and reward shareholders with cash or share buybacks.

Distributions

Dividends Short-term capital gains Long-term capital gains
2022 $0.0716 $0.0000 $0.0000
2021 $0.1201 $0.6756 $0.0000
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: