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Global Absolute Return Fund

Our full alpha-generating capabilities, with lower volatility and low or no equity market correlation

NAV (as of 23 Mar 2018)

$8.88, +0.05




24 Jan 2011



Fact Sheet Prospectus

Fund Profile

The Fund takes long and short exposures in common and preferred stocks of companies located primarily in developed countries outside the U.S. and of companies in the U.S. To obtain exposure to long and short positions in securities, the Fund enters into one or more total return equity swap agreements. Although the Fund is permitted to take direct long and short positions in securities, other than swap agreements, it does not currently intend directly to purchase or sell securities or directly to hold short positions in securities. The Investment Adviser uses its fundamental global value equity strategy to manage the Fund’s long exposures (the “global long portfolio” of the Fund). The Investment Adviser uses its quantitative investment strategy designed to identify short exposures that it expects to underperform the MSCI World Index to manage the Fund’s short exposures (the “global short portfolio” of the Fund).

Minimum Investment$5,000
Sales ChargeNone
Net Expense Ratio1.77%
Gross Expense Ratio1.80%
Dividend FrequencyAnnual
Capital Gain FrequencyAnnual
Benchmark BofA ML 3M US TBill


Fund Quarter to Date Year to Date 1 Year3 Year5 Year Since Inception
CGAVX 1.0%1.0%0.9%-0.5%2.1%2.1%
ICE BofAML 90 T Bill 0.2%0.2%1.0%0.5%0.3%0.3%
Fund Quarter to Date Year to Date 1 Year3 Year5 Year Since Inception
CGAVX 0.9%-8.3%-8.3%-1.3%1.5%2.0%
ICE BofAML 90 T Bill 0.3%0.9%0.9%0.4%0.3%0.2%


Position Details as of 28 Feb 2018

Market Value Long61,184,503
Market Value Short-59,413,090
Net Positional Value1,771,413
Net Exposure4.48%
Long Positions 52
Short Positions 125

Characteristics as of 28 Feb 2018

Long Portfolio Short Portfolio MSCI World
No. of Exposures 52 125 1630
Wtd Avg Mkt Cap (Mn $US)$83,111$34,861$126,160
FY2 Price/Earnings12.415.115.0
Price/Book Value1.81.72.4
Return on Equity (%)16.32.816.4

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. Return on equity is calculated by taking a year's worth of earnings and dividing them by the average shareholder equity for that year.

Sector Exposure as of 28 Feb 2018

Long Exposure (%)Short Exposure (%)Net Exposure (%)
Telecommunication Services13.25-4.808.45
Health Care24.76-17.846.92
Information Technology29.34-27.222.12
Real Estate2.59-4.13-1.54
Consumer Discretionary12.46-15.72-3.26
Consumer Staples5.64-12.34-6.70

Country Exposure as of 28 Feb 2018

Long Exposure (%)Short Exposure (%)Net Exposure (%)
United Kingdom27.75-16.6511.10
Hong Kong6.05-4.401.65
South Korea6.08-6.38-0.30
United States62.72-68.45-5.73

TOP 10 Positions as of 28 Feb 2018

Top Ten Long PositionsTop Ten Short Positions
CompanyEnding Weight (%)CompanyEnding Weight (%)
Barclays Plc5.58%Twilio, Inc.-4.06%
Halliburton Co.4.55%Old Mutual Plc-3.49%
Takeda Pharmaceutical Co., Ltd.4.49%Nokia Oyj-3.45%
Microsoft Corp.4.49%Cardinal Health, Inc.-3.27%
China Mobile Ltd.4.40%Hyundai Motor Co., Ltd.-3.17%
CSRA, Inc.4.40%LafargeHolcim Ltd.-3.15%
Eli Lilly & Co.4.32%Berkshire Hathaway, Inc.-3.08%
British American Tobacco plc4.14%Westinghouse Air Brake Technologies Corp.-3.02%
East Japan Railway Co.4.04%Murata Manufacturing Co. Ltd.-3.01%
Citigroup, Inc.3.94%Novocure-2.99%

Holdings are subject to change.


Causeway Global Absolute Return (GAR) Fund is designed for investors who want equity-like returns with lower volatility and lower market correlation. The Fund invests in global developed markets equities, using swap agreements to obtain exposures to long and short positions.

Causeway uses its fundamental global value equity strategy to manage the Fund’s long exposures and its quantitative investment strategy to manage the short exposures. Both the long and short portfolios seek to add alpha(performance exceeding the long or short MSCI World Index), which is amplified by leverage up to 4x, with a target of 3x.

The GAR Fund attempts to mitigate risk in a number of ways: on the short side, qualitative risk may be captured by a fundamental review of short positions, and short exposures are constrained. Unrealized gains or losses through swap agreements are also constrained, limiting counterparty risk. There are approximately twice as many short exposures as long, designed to mitigate idiosyncratic risk.

The GAR Fund typically has 85-180 long/short exposures. The dollar amount of the long exposures is generally within 10 percentage points of the dollar amount of the short exposures, but the Fund may have sector or regional biases.


PERFORMANCE REVIEW for the month ended 28 Feb 2018

Causeway Global Absolute Return Fund (“Fund”) modestly outperformed the ICE BofAML U.S. 3-Month Treasury Bill Index in the month of February. The Fund’s outperformance was driven by the short portfolio: The Fund’s long portfolio modestly underperformed the MSCI World Index (“World Index”), detracting from overall portfolio return, but the Fund’s short portfolio underperformed the World Index by a larger margin, contributing positively to overall portfolio return.

Global equity markets drifted downward in February, a reversal of the steady march upward after the November 2016 US presidential election. The top performing markets in our investable universe included Finland, Japan, Norway, Singapore, and Denmark. The worst performing markets included Spain, Canada, Germany, New Zealand, and Ireland. The best performing sectors in the World Index were information technology, consumer discretionary, and financials. The worst performing sectors were energy, consumer staples, and real estate.

The Fund takes long and short notional exposures to securities under swap agreements. We use our fundamental value approach to select exposures for the long portfolio of the Fund. The long portfolio underperformed the World Index during the period, due primarily to currency allocation (a byproduct of our bottom-up stock exposure selection process). Exposures to the technology hardware & equipment, telecommunication services, and capital goods industry groups detracted the most from relative performance. Exposures to the software & services, banks, and materials industry groups offset a portion of the underperformance. The largest detractor was British American Tobacco plc (United Kingdom). Additional detractors included energy exploration & production company, SM Energy Co. (United States), mobile telecommunications operator, China Mobile Ltd. (Hong Kong), energy exploration & production company, Halliburton Co. (United States), and automobile manufacturer, Volkswagen AG (Germany). The top contributor to performance was public sector software & services company, CSRA, Inc. (United States). Additional contributors included travel & tourism technology company, Sabre Corp. (United States), banking & financial services company, Barclays Plc (United Kingdom), paints & coatings producer, Akzo Nobel NV (Netherlands), and software & services company, Baidu (China).

We use a quantitative approach to select securities exposures for the short portfolio of the Fund. Our process seeks to obtain short exposures to stocks which we believe are overvalued and have deteriorating earnings growth dynamics, poor technical price movements, and insolvency risk and/or inferior quality of earnings. During the month of February, our technical and quality factor categories demonstrated predictive power. Companies with weak technical indicators and those demonstrating potential insolvency and/or accounting chicanery underperformed the broader market, as anticipated. However, returns to our value and growth factors were negative. Companies with expensive valuations and those with worsening earnings growth dynamics outperformed the broader market, contrary to expectations.

From an industry group perspective, short-side attribution effects were strongest in the healthcare equipment & services, telecommunication services, and energy industry groups. Short-side attribution effects were weakest in the software & services, materials, and technology hardware & equipment industry groups. Successful short exposures included healthcare services company, Brookdale Senior Living, Inc. (United States), energy company, Weatherford International (Switzerland), telecommunications company, China Unicom (Hong Kong) Ltd., food manufacturer, The Kraft Heinz Co. (United States), and insurance company, American International Group, Inc. (United States). Short exposures that detracted from the Fund's performance included communications software platform company, Twilio, Inc. (United States), technology hardware & equipment company, Nokia Oyj (Finland), insurance company, Old Mutual Plc (United Kingdom), financial services company, DBS Group Holdings Ltd. (Singapore), and cloud computing company, ServiceNow, Inc. (United States).

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.


2013 $0.4126
2012 $0.2586
2011 $0.0948
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Short-term Capital Gains

2013 $0.0000
2012 $0.0000
2011 $0.3053
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Long-term Capital Gains

2013 $0.0000
2012 $0.0000
2011 $0.0000
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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).


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