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*
$9.03, -0.21
March 30, 2007
MSCI Emerging Markets
Minimum Investment
Sales Charge
Net Expense Ratio
Gross Expense Ratio
*As of September 23, 2022
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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 1.4%-18.8%-22.8%2.2%-1.1%2.7%3.0%
MSCI Emerging Markets 0.3%-17.2%-21.5%3.1%1.0%3.3%3.3%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 1.4%-18.8%-22.8%2.2%-1.1%2.7%3.0%
MSCI Emerging Markets 0.3%-17.2%-21.5%3.1%1.0%3.3%3.3%
QTD YTD 1 year3 years5 years10 years Since inception
Fund -13.1%-20.0%-27.4%-0.6%0.5%2.7%2.9%
MSCI Emerging Markets -11.3%-17.5%-25.0%0.9%2.5%3.4%3.3%
QTD YTD 1 year3 years5 years10 years Since inception
Fund -13.1%-20.0%-27.4%-0.6%0.5%2.7%2.9%
MSCI Emerging Markets -11.3%-17.5%-25.0%0.9%2.5%3.4%3.3%
Fund -1.5%16.7%16.4%-18.1%39.5%8.9%-16.2%1.8%-2.8%25.6%-18.2%26.1%87.9%-58.5%
MSCI Emerging Markets -2.2%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, 2022)

Benchmark: MSCI Emerging Markets
Asset Allocation
Stocks 96.3%
Cash 3.7%
Fund Characteristics
Fund Benchmark
No. of holdings 182 1382
Weighted avg. market cap (US $MM) $64,605 $66,197
NTM price/earnings 6.4 11.1
Price/book value 1.1 1.7
NTM EPS revision (wtd. avg) 11.9 1.0
Net assets $288,877,468 -
Security Country Active weight*
China Construction Bank Corp. China 1.9%
Banco do Brasil SA Brazil 1.4%
Kia Corp. South Korea 1.3%
PetroChina Co., Ltd. China 1.1%
PICC Property & Casualty Co., Ltd. China 1.1%
Hon Hai Precision Industry Co., Ltd. Taiwan 1.0%
Cosco Shipping Holdings Co China 0.9%
Daqo New Energy China 0.9%
Sun Pharmaceutical Industries Ltd. India 0.9%
JBS SA Brazil 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 20.0% 19.4%
Financials 19.4% 21.6%
Materials 9.4% 8.4%
Energy 9.3% 5.3%
Industrials 8.7% 5.8%
Consumer Discretionary 8.4% 14.2%
Consumer Staples 5.6% 6.2%
Communication Services 5.4% 10.1%
Equity Funds 4.2% 0.0%
Health Care 3.6% 3.9%
Utilities 1.9% 3.1%
Real Estate 0.4% 1.9%
Country Fund Benchmark
China 31.7% 32.1%
Taiwan 13.6% 14.6%
India 13.6% 14.5%
South Korea 13.3% 11.6%
Brazil 6.6% 5.3%
Saudi Arabia 5.1% 4.6%
Thailand 3.1% 2.0%
Indonesia 2.5% 2.0%
United Arab Emirates 2.3% 1.3%
South Africa 2.0% 3.4%
Regional Allocation
  • Emerging Asia 78.1%
  • Emerging Europe, Middle East, Africa 10.7%
  • Emerging Latin America 7.6%

Commentary (As of August 31, 2022)


  • In August, emerging market equity prices continued their third quarter rebound as the MSCI Emerging Markets (“Index”) returned 1.25% in local currency terms during the month.
  • In the current environment, the Fed is increasing interest rates at the front end of the yield curve, which is dampening global growth and reducing global liquidity. EM currencies have fared relatively well despite these headwinds due in part to the efforts of most EM central banks to increase their benchmark interest rates in anticipation of a Fed rate hiking cycle.
  • China remains a noteworthy outlier compared to other EM countries. The People’s Bank of China has been easing monetary policy as Covid-19 lockdowns have lowered growth and inflation expectations. Buoyed in part by accommodative monetary and fiscal policies, earnings growth estimates for Chinese companies have been improving.

Portfolio attribution

The Causeway Emerging Markets Fund (“Fund”) outperformed the Index in August 2022. 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 growth and technical factors were positive indicators during the month. Our valuation and competitive strength factors were negative indicators. Of our top-down factors, our country and sector factors were positive indicators while our macroeconomic and currency factors were negative indicators in August.

Investment outlook

Earnings growth upgrades for EM equities continue to lag those in developed markets. From a country perspective, South Korea, South Africa, and Brazil had the weakest net upgrades. South Korea reflects slowing global growth via the country’s exposure to the information technology sector. South Africa and Brazil are commodity-oriented economies that have been impacted by falling commodity prices. We are overweight South Korean and Brazilian stocks in the Fund due to a combination of valuation, price momentum, and macroeconomic considerations. The countries with the strongest net upgrades were Indonesia, Saudi Arabia, and United Arab Emirates, in part reflecting relatively strong oil and coal prices. The EM sectors with the weakest upgrades were real estate, materials, and information technology. Real estate is primarily driven by slowing growth in the Chinese real estate sector, which is less impactful for China overall as the relative size of the sector has declined. Materials and information technology reflect the falling commodity prices resulting from a slowing global economy. The sectors with the strongest earnings growth upgrades were energy, consumer discretionary, and consumer staples. Energy companies continue to benefit from relatively high oil prices. The positive outlook for consumer discretionary companies reflects the encouraging results of Chinese online consumer companies. Consumer staples, a defensively-oriented sector, reflects the growing concern over an economic slowdown. While we incorporate growth expectations into our multi-factor investment process, we continue to emphasize valuation in our approach. With a balance of favorable valuation, growth, and price momentum characteristics relative to the Index, we believe the portfolio provides outperformance potential looking forward.


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
2021 $0.3478 $0.0000 $2.4046
2020 $0.1787 $0.0000 $0.0000
2019 $0.2362 $0.0000 $0.0000
2018 $0.1777 $0.0000 $0.0000
2017 $0.1937 $0.0000 $0.0000
2016 $0.1353 $0.0000 $0.0000
2015 $0.1434 $0.0000 $0.0000
2014 $0.2425 $0.0000 $0.0000
2013 $0.1100 $0.0000 $0.0000
2012 $0.2768 $0.0000 $0.0000
2011 $0.0972 $0.0000 $0.0000
2010 $0.2560 $0.0000 $0.0000
2009 $0.2866 $0.0000 $0.0000
2008 $0.1506 $0.0000 $0.0000
2007 $0.2097 $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: