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*
+3.82%
Nav*
$15.77, +0.17
Inception
March 30, 2007
Cusip
149498206
Benchmark
MSCI Emerging Markets
Minimum Investment
$5,000
Sales Charge
None
Total Expense Ratio
1.33%
*As of July 29, 2021
Download Profile Sheet Download Prospectus
Contact Us

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

Performance

QTD YTD 1 year3 years5 years10 years Since inception
Fund 3.5%8.6%41.7%9.9%11.8%4.3%5.5%
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 3.5%8.6%41.7%9.9%11.8%4.3%5.5%
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 3.5%8.6%41.7%9.9%11.8%4.3%5.5%
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 3.5%8.6%41.7%9.9%11.8%4.3%5.5%
MSCI Emerging Markets 5.1%7.6%41.4%11.7%13.4%4.7%5.6%
2020201920182017201620152014201320122011201020092008
Fund 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 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%
Fund
MSCI Emerging Markets
2020201920182017201620152014201320122011201020092008
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%
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%

Portfolio (as of June 30, 2021)

Benchmark: MSCI Emerging Markets
Asset Allocation
Fund
Stocks 98.2%
Cash 1.8%
Fund Characteristics
Fund Benchmark
No. of holdings 124 1412
Weighted avg. market cap (US $MM) $136,931 $112,978
NTM price/earnings 10.0 13.1
Price/book value 1.7 2.1
NTM EPS revision (wtd. avg) 10.8 2.9
Net assets $715,316,716 -
TOP 10 ACTIVE HOLDINGS
Security Country Active weight*
China Construction Bank Corp. China 1.9%
Tencent Holdings Ltd. China 1.6%
Hindalco Industries India 1.1%
Kia Corp. South Korea 1.1%
Taiwan Semiconductor Manufacturing Co., Ltd. Taiwan 1.1%
Vale SA Brazil 1.0%
POSCO South Korea 1.0%
MediaTek, Inc. Taiwan 0.9%
Fubon Financial Holding Co., Ltd. Taiwan 0.9%
Hon Hai Precision Industry Co., Ltd. Taiwan 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 WEIGHTS
Sector Fund Benchmark
Information Technology 23.9% 20.4%
Financials 17.3% 17.8%
Consumer Discretionary 14.3% 17.6%
Communication Services 11.0% 11.3%
Materials 10.7% 8.4%
Energy 5.2% 5.0%
Equity Funds 5.1% 0.0%
Consumer Staples 3.9% 5.6%
Industrials 2.9% 4.9%
Health Care 2.9% 5.0%
Real Estate 0.8% 2.0%
Utilities 0.0% 1.9%
TOP 10 COUNTRIES
Country Fund Benchmark
China 33.9% 37.5%
South Korea 17.7% 13.2%
Taiwan 17.3% 13.9%
India 10.0% 9.9%
Brazil 5.7% 5.2%
Russia 3.9% 3.3%
South Africa 2.2% 3.5%
Thailand 2.1% 1.6%
Mexico 1.9% 1.7%
Saudi Arabia 1.6% 2.9%
Regional Allocation
  • Emerging Asia 82.1%
  • Emerging Europe, Middle East, Africa 8.4%
  • Emerging Latin America 7.6%

Commentary (As of June 30, 2021)

Highlights

  • While concerns over Covid-19 variants weighed on Emerging Markets (“EM”) economies in June, EM stocks posted positive returns during the month.
  • Like the Federal Reserve, many EM central banks are monitoring inflation closely. On a float-weighted basis, inflation in EM is forecast to remain below 3% in 2021.
  • The largest potential headwind for EM value stocks relates to Covid-19 vaccine distribution challenges or efficacy issues against developing virus variants. However, with the MSCI EM Value Index trading at a 52%discount to the MSCI EM Growth Index on a next-twelve-month price-to-earnings basis, we believe that value stocks offer compelling risk-adjusted return potential.

Portfolio attribution

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

Investment outlook

Within EM, earnings upgrades have been strongest in materials, energy, and industrials. The improving expectations for these cyclical sectors reflect analyst optimism that economies will continue to reopen as vaccine distribution progresses. The materials sector represents one of the Fund’s largest overweight positions due to attractive growth and price momentum characteristics. Information technology, the Fund’s largest sector overweight, also includes stocks with compelling growth and price momentum attributes. From a country perspective, growth upgrades were particularly strong in Poland, Russia, and Saudi Arabia. South Africa, Indonesia, and China had the weakest net upgrades. The Chinese government is paring back stimulus measures and some of the country’s largest companies are facing elevated regulatory risks as well as increasing spending needs to fund new growth drivers.

We continue to emphasize value factors in our multi-factor investment process. The largest potential headwind for EM value stocks relates to Covid-19 vaccine distribution challenges or efficacy issues against developing virus variants. However, with the MSCI EM Value Index trading at a 52% discount to the MSCI EM Growth Index on a next-twelve-month price-to-earnings basis, we believe that value stocks offer compelling risk-adjusted return potential.

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.

Distributions

Dividends Short-term capital gains Long-term capital gains
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).

Documents

Fund information:

Forms: