Diversified exposure to emerging markets, seeking to capture value and growth

The Fund normally invests at least 80% of its total assets in equity securities of companies located in emerging (less developed) markets and other investments that are tied economically to emerging markets. Generally these investments include common stock, preferred and preference stock, American Depositary Receipts, European Depositary Receipts, Global Depositary Receipts, and exchange-traded funds (“ETFs”) that invest in emerging markets securities.

Causeway uses a quantitative investment approach to purchase and sell investments for the Fund. Causeway’s proprietary computer model analyzes a variety of factors to assist in selecting securities. The model currently analyzes factors relating to valuation, earnings growth, technical indicators, macroeconomics, currency, countries and sectors.

YTD Return*
$15.26, -0.07
March 30, 2007
MSCI Emerging Markets
Minimum Investment
Sales Charge
Total Expense Ratio
*As of September 17, 2021
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Strategy overview

The portfolio managers discuss our Emerging Markets strategy.

Portfolio managers

Quantitative Portfolio Manager
Head of Quantitative Research
Quantitative Portfolio Manager
Quantitative Portfolio Manager
Quantitative Portfolio Manager


QTD YTD 1 year3 years5 years10 years Since inception
Fund -4.6%3.7%22.6%8.4%9.6%5.1%5.3%
MSCI Emerging Markets -4.2%3.1%21.5%10.2%10.8%5.2%5.2%
QTD YTD 1 year3 years5 years10 years Since inception
Fund -4.6%3.7%22.6%8.4%9.6%5.1%5.3%
MSCI Emerging Markets -4.2%3.1%21.5%10.2%10.8%5.2%5.2%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 3.6%8.8%42.0%10.1%12.1%4.5%5.7%
MSCI Emerging Markets 5.1%7.6%41.4%11.7%13.4%4.7%5.6%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 3.6%8.8%42.0%10.1%12.1%4.5%5.7%
MSCI Emerging Markets 5.1%7.6%41.4%11.7%13.4%4.7%5.6%
Fund 16.9%16.7%-17.9%39.8%9.2%-16.0%2.1%-2.6%25.8%-18.1%26.3%88.1%-58.4%
MSCI Emerging Markets 18.7%18.9%-14.2%37.8%11.6%-14.6%-1.8%-2.3%18.6%-18.2%19.2%79.0%-53.2%
MSCI Emerging Markets

Portfolio (as of August 31, 2021)

Benchmark: MSCI Emerging Markets
Asset Allocation
Stocks 97.7%
Cash 2.3%
Fund Characteristics
Fund Benchmark
No. of holdings 134 1407
Weighted avg. market cap (US $MM) $113,644 $98,278
NTM price/earnings 9.0 12.3
Price/book value 1.6 2.0
NTM EPS revision (wtd. avg) 13.9 2.9
Net assets $2,242,756,520 -
Security Country Active weight*
China Construction Bank Corp. China 1.8%
Hindalco Industries India 1.5%
Fubon Financial Holding Co., Ltd. Taiwan 1.1%
Kia Corp. South Korea 1.0%
JBS SA Brazil 1.0%
Tencent Holdings Ltd. China 1.0%
OAO Gazprom Russia 1.0%
Hon Hai Precision Industry Co., Ltd. Taiwan 1.0%
MediaTek, Inc. Taiwan 0.9%
Sberbank Russia 0.9%

A "weighted average” measures a characteristic by the market capitalization of each stock. Price/book value is the weighted average of the price/book values of all the stocks in a portfolio. The P/B value 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. “Earnings-per-share” is the portion of a company’s profit allocated to each outstanding share of common stock. “Earnings-per-share year-over-year estimate growth (next 12 months)” is the average next-12-month earnings-per-share estimate from one year ago for an individual company compared with that estimate today; note that this calculation is done on a company-by-company basis and is aggregated through a weighted average based on the individual company’s weight in the corresponding index. Also note that this characteristic is supplied directly by MSCI.

*Active defined as Fund weight minus MSCI EM Index weight. Holdings are subject to change.

Sector Fund Benchmark
Information Technology 24.2% 21.3%
Financials 18.0% 19.2%
Materials 12.3% 8.9%
Consumer Discretionary 12.3% 15.2%
Communication Services 9.6% 10.6%
Energy 5.5% 5.3%
Equity Funds 4.4% 0.0%
Industrials 4.0% 5.0%
Consumer Staples 4.0% 5.8%
Health Care 2.7% 4.7%
Real Estate 0.6% 1.8%
Utilities 0.0% 2.2%
Country Fund Benchmark
China 29.4% 33.9%
Taiwan 18.2% 14.8%
South Korea 17.0% 13.0%
India 11.9% 11.7%
Brazil 5.6% 5.0%
Russia 4.3% 3.6%
Mexico 2.6% 2.0%
South Africa 2.3% 3.2%
Saudi Arabia 2.0% 3.2%
Thailand 1.8% 1.7%
Regional Allocation
  • Emerging Asia 79.3%
  • Emerging Europe, Middle East, Africa 9.9%
  • Emerging Latin America 8.5%

Commentary (As of August 31, 2021)


  • Emerging Markets (“EM”) stocks rebounded in August as the US Federal Reserve’s accommodative policies continued to support global liquidity.
  • In our continued effort to enhance our investment process for the benefit of our clients, we added a new indicator into our model’s top-down factor category. The factor, changes in the Markit country manufacturing Purchasing Manager’s Index (“PMI”), is used in conjunction with our Organisation for Economic Co-operation and Development (OECD) Composite Leading Indicator (“CLI”) factor to assess whether a country’s manufacturing economy is growing or shrinking.
  • While we incorporate bottom-up earnings growth factors into our assessment of each stock, we continue to emphasize valuation in our multi-factor investment process. Despite outperforming year-to-date, we believe the outlook for value stocks remains compelling as many companies in this cohort offer discounted valuations relative to history and attractive dividend yields.

Portfolio attribution

The Causeway Emerging Markets Fund (“Fund”) underperformed the Index in August 2021. We use both bottom-up “stock-specific” and top-down factor categories to seek to forecast alpha for the stocks in the Fund’s investable universe. Our bottom-up valuation factor was our top performing indicator in August. Our bottom-up price momentum, growth, and competitive strength factors were negative indicators during the month. Of our top-down factors, macroeconomic and country were negative indicators while sector and currency were positive.

Investment outlook

Within EM, earnings upgrades have been strongest in energy, materials, and information technology. We are overweight the materials and information technology sectors in the Fund due in part to favorable growth characteristics. The countries with the strongest upgrades in earnings growth expectations include Russia, South Korea, and Saudi Arabia. Chinese stocks continue to experience significant earnings downgrades on a float-weighted basis as regulatory scrutiny weighs on the outlook for some of the country’s largest companies. Many of the Chinese stocks experiencing regulatory headwinds fall into the growth category, which has contributed to the outperformance of EM value stocks year-to-date. We continue to emphasize value factors in our multi-factor investment process. Despite outperforming year-to-date, the MSCI Emerging Markets Value Index trades at a discount relative to history. We believe the outlook for value stocks remains compelling as many companies in this cohort offer attractive valuations relative to history and should benefit as the vaccine rollout progresses and economies slowly reopen.

The market commentary expresses the portfolio managers’ views as of the date of this report and should not be relied on as research or investment advice regarding any stock. These views and the Fund holdings and characteristics are subject to change. There is no guarantee that any forecasts made will come to pass. Any securities identified and described in this report do not represent all of the securities purchased, sold or recommended for client accounts. The reader should not assume that an investment in the securities identified was or will be profitable. Diversification does not protect against market loss. Current and future holdings are subject to risk. The Fund may invest in derivatives, which are often more volatile than other investments and may magnify the Fund's gains or losses. Investing in ETFs is subject to the risks of the underlying funds. International and emerging markets investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from social, economic or political instability in other nations. Emerging markets and smaller companies involve additional risks and higher volatility.


Dividends Short-term capital gains Long-term capital gains
2020 $0.2052 $0.0000 $0.0000
2019 $0.2650 $0.0000 $0.0000
2018 $0.2296 $0.0000 $0.0000
2017 $0.2232 $0.0000 $0.0000
2016 $0.1597 $0.0000 $0.0000
2015 $0.1620 $0.0000 $0.0000
2014 $0.2775 $0.0000 $0.0000
2013 $0.0825 $0.0000 $0.0000
2012 $0.2526 $0.0000 $0.0000
2011 $0.0778 $0.0000 $0.0000
2010 $0.2451 $0.0000 $0.0000
2009 $0.2830 $0.0000 $0.0000
2008 $0.1186 $0.0000 $0.0000
2007 $0.2002 $0.4003 $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).


Fund information: