Seeking value primarily in developed markets worldwide
The Fund invests primarily in common stocks of companies in developed countries located outside the US and of companies in the US. Normally, the Fund invests the majority of its total assets in companies that pay dividends or repurchase their shares. The Fund may invest up to 20% of its total assets in companies located in emerging (less developed) markets. Under normal circumstances, the Fund will invest at least 40% of its total assets in companies located in a number of countries outside the US. The Fund’s investment objective is to seek long-term growth of capital and income.
- YTD Return*
- -32.98%
- Nav*
- $7.01, +0.11
- Inception
- April 29, 2008
- Cusip
- 14949P307
- Benchmark
- MSCI ACWI
- Minimum Investment
- $1,000,000
- Sales Charge
- None
- Net Expense Ratio
- 1.05%
- Gross Expense Ratio
- 1.08%
Portfolio managers
Sarah Ketterer
Fundamental Portfolio Manager
Ms. Ketterer is the chief executive officer at Causeway, fundamental portfolio manager, and is responsible for investment research across all sectors. Ms. Ketterer co-founded the firm in June 2001 and is a member of the operating committee.
From 1996 to 2001, Ms. Ketterer worked for the Hotchkis & Wiley division of Merrill Lynch Investment Managers (HW-MLIM). At HW-MLIM, she was a managing director and co-head of the firm's HW-MLIM International and Global Value team. From 1990 to 1996, Ms. Ketterer was a portfolio manager at Hotchkis & Wiley, where she founded the International Equity product.
Ms. Ketterer earned a BA in economics and political science from Stanford University and an MBA from the Tuck School, Dartmouth College. She is currently a member of the Stanford University Board of Trustees, co-chair of the Los Angeles World Affairs Council and Town Hall, a director of the Los Angeles Philharmonic, the Music Center Foundation (as chair of the investment committee), and serves on the Girls Who Invest President’s Council.
Harry Hartford
Head of Fundamental Research
Fundamental Portfolio Manager
Mr. Hartford is the president at Causeway, fundamental portfolio manager, and head of fundamental research. Mr. Hartford co-founded the firm in June 2001 and is a member of the operating committee.
From 1996 to June 2001, Mr. Hartford was a managing director for the Hotchkis & Wiley division of Merrill Lynch Investment Managers (HW-MLIM) and co-head of the firm's HW-MLIM international and global value team. From 1994 to 1996, Mr. Hartford was a portfolio manager for Hotchkis and Wiley. From 1984 to 1994, Mr. Hartford was with The Investment Bank of Ireland, where he gained ten years’ experience in both international and global equity management. During this time, Mr. Hartford also managed the Irish Investment Fund, a closed-end country fund quoted on the NYSE. Before entering the investment business, Mr. Hartford lectured in micro and macroeconomics at Oklahoma State University.
Mr. Hartford earned a BA, with honors, in economics from the University of Dublin, Trinity College, an MSc in economics from Oklahoma State University, and is a Phi Kappa Phi member. Mr. Hartford is a member of The Ireland Funds America Board of Directors and serves as chair of the Los Angeles Regional Board.
James Doyle
Mr. Doyle is a director and a fundamental portfolio manager at Causeway and has been with the firm since its inception in June 2001. Mr. Doyle has covered a variety of industries, including financials, industrials and consumer. His current responsibilities include technology and telecommunications. He is also a member of the operating committee.
Previously, Mr. Doyle was an equity analyst and portfolio manager with the international team of the Hotchkis & Wiley division of Merrill Lynch Investment Managers. He also was an equity research consultant for Morgan Stanley Asset Management, and a financial analyst for LaSalle Partners.
Mr. Doyle earned a BA in economics from Northwestern University and an MBA in finance from the Wharton School, University of Pennsylvania. He is the co-chair of the Northwestern University Leadership Circle of Los Angeles.
Jonathan Eng
Mr. Eng is a director and fundamental portfolio manager at Causeway and is responsible for investment research in the global consumer discretionary, industrials, and energy sectors. He joined the firm in July 2001 and has been a portfolio manager since February 2002.
From 1997 to 2001, Mr. Eng was an equity research associate for the Hotchkis and Wiley division of Merrill Lynch Investment Managers (HW-MLIM). In 1996, Mr. Eng worked as a summer research associate for Hotchkis and Wiley, performing U.K. and European equity research. From 1993 to 1995, Mr. Eng analyzed merger and acquisition candidates at Slusser Associates. From 1990 to 1993, Mr. Eng worked as a middle market corporate lender for Bank of Boston.
Mr. Eng earned a BA in history and economics from Brandeis University and an MBA from the UCLA Anderson Graduate School of Management
Conor Muldoon, CFA
Mr. Muldoon is a director and fundamental portfolio manager at Causeway and is responsible for investment research in the global financials and materials sectors. He joined the firm in August 2003 and has been a portfolio manager since September 2010.
From 1995 to 2003, Mr. Muldoon was an investment consultant for Fidelity Investments where he served as a liaison between institutional clients and investment managers within Fidelity. He was responsible for communicating current information on the financial markets, the economy and investment performance.
Mr. Muldoon earned a BSc and an MA from the University of Dublin, Trinity College and an MBA, with high honors, from the University of Chicago. Mr. Muldoon was inducted into the Beta Gamma Sigma honors society and is also a CFA charterholder.
Alessandro Valentini, CFA
Mr. Valentini is a director and fundamental portfolio manager at Causeway and is responsible for investment research in the global healthcare, financials, and materials sectors. He joined the firm in July 2006 and has been a portfolio manager since April 2013.
During the summer of 2005, Mr. Valentini worked as a research analyst at Thornburg Investment Management, where he conducted fundamental research for the International Value Fund and the Value Fund, focusing on the European telecommunication and Canadian oil sectors. From 2000 to 2004, Mr. Valentini worked as a financial analyst at Goldman Sachs in the European equities research-sales division in New York.
Mr. Valentini earned an MBA from Columbia Business School, with honors, an MA in economics from Georgetown University and a BS, magna cum laude, from Georgetown University. Mr. Valentini was inducted into the Beta Gamma Sigma honors society, is a Phi Beta Kappa member, and is a CFA charterholder.
Ellen Lee
Ms. Lee is a director and fundamental portfolio manager at Causeway and is responsible for investment research in the global consumer and utilities sectors. Prior to the current role, she also covered transportation and autos. She joined the firm in August 2007 and has been a portfolio manager since January 2015.
During the summer of 2006, Ms. Lee interned at Tiger Asia, a long short equity hedge fund focused on China, Japan, and Korea. From 2001 to 2004, Ms. Lee was an associate in the mergers and acquisitions division of Credit Suisse First Boston in Seoul, where she advised Korean corporates and multinational corporations. From 1999 to 2000, she was an analyst in the mergers and acquisitions division of Credit Suisse First Boston in Hong Kong.
Ms. Lee earned a BA in business administration from Seoul National University and an MBA from the Stanford Graduate School of Business. She currently serves on the audit and investment committee at the Center for Early Education in West Hollywood.
Steven Nguyen, CFA
Mr. Nguyen is a director and fundamental portfolio manager at Causeway and is responsible for investment research in the industrials, energy, utilities, and healthcare sectors. He joined the firm in April 2012 and has been a portfolio manager since January 2019.
From 2006 to 2012, Mr. Nguyen was a senior credit analyst at Bradford & Marzec covering high yield and investment grade companies in the telecommunication services, cable, media, gaming, insurance, and REIT industries. From 2003 to 2006, Mr. Nguyen was a credit analyst/portfolio manager in the corporate bond department of Allegiance Capital.
Mr. Nguyen earned a BA in business economics from Brown University and an MBA, with honors, from the UCLA Anderson School of Management. Mr. Nguyen was the president of the Anderson Student Asset Management association. Mr. Nguyen is a CFA charterholder.
Performance
The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth less than their original cost and current performance may be lower than the performance quoted. Returns greater than one year are average annual total returns. Total returns assume reinvestment of dividends and capital gains distributions at net asset value when paid. All information is as of the date shown. Investment performance reflects fee waivers in effect. In the absence of such fee waivers, total return would be reduced. Contractual fee waivers are in effect until 1/31/21. The net expense ratio for Institutional Class shares is 1.05%. The net expense ratio for Investor Class shares is 1.30%. Effective October 1, 2018, the Global Value Fund’s benchmark changed from the MSCI World Index (Gross) to the MSCI ACWI Index (Gross). Causeway believes that the MSCI ACWI Index (Gross), which includes emerging as well as developed markets, better represents the types of securities in which the strategy invests.
Portfolio (as of February 29, 2020)
Asset Allocation
| Fund | |
|---|---|
| Stocks | 97.7% |
| Cash | 2.3% |
Fund Characteristics
| Fund | Benchmark | |
|---|---|---|
| No. of holdings | 51 | 3043 |
| Weighted avg. market cap (US $MM) | $82,831 | $163,206 |
| FY2 price/earnings | 9.8 | 14.0 |
| Price/book value | 1.3 | 2.2 |
| Net assets | $53,510,598 | - |
TOP 10 HOLDINGS
| Security | Country | Percent |
|---|---|---|
| Volkswagen AG | Germany | 4.1% |
| Takeda Pharmaceutical Co., Ltd. | Japan | 3.6% |
| UniCredit S.p.A. | Italy | 3.3% |
| ABB Ltd. | Switzerland | 3.2% |
| SYNNEX Corp. | United States | 3.2% |
| BASF SE | Germany | 3.1% |
| Samsung Electronics Co., Ltd. | South Korea | 3.1% |
| British American Tobacco plc | United Kingdom | 2.8% |
| Rolls-Royce Holdings Plc | United Kingdom | 2.8% |
| China Mobile Ltd. | China | 2.7% |
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 |
|---|---|---|
| Industrials | 19.6% | 10.1% |
| Information Technology | 17.4% | 18.1% |
| Financials | 12.9% | 16.1% |
| Health Care | 11.4% | 11.9% |
| Communication Services | 10.5% | 9.1% |
| Materials | 8.5% | 4.5% |
| Consumer Discretionary | 6.5% | 10.9% |
| Energy | 5.5% | 4.5% |
| Consumer Staples | 2.8% | 8.1% |
| Utilities | 2.6% | 3.5% |
| Real Estate | 0.0% | 3.3% |
TOP 10 COUNTRIES
| Country | Fund | Benchmark |
|---|---|---|
| United States | 36.9% | 56.2% |
| United Kingdom | 13.0% | 4.5% |
| Germany | 12.1% | 2.5% |
| Switzerland | 7.2% | 2.8% |
| Japan | 7.0% | 7.1% |
| China | 5.4% | 4.4% |
| South Korea | 5.1% | 1.4% |
| France | 3.4% | 3.2% |
| Italy | 3.3% | 0.7% |
| Netherlands | 2.6% | 1.2% |
Regional Allocation
- Europe – other 42.5%
- North America 37.7%
- Emerging Asia 10.5%
- Pacific 7.0%
Distributions
| Dividends | Short-term capital gains | Long-term capital gains | |
|---|---|---|---|
| 2019 | $0.3324 | $0.1359 | 0.0305 |
| 2018 | $0.1956 | $0.2508 | $1.2062 |
| 2017 | $0.2363 | $0.4167 | $0.1330 |
| 2016 | $0.1493 | $0.0000 | $0.0000 |
| 2015 | $0.1251 | $0.0000 | $0.2089 |
| 2014 | $0.2232 | $0.3781 | $0.5989 |
| 2013 | $0.1162 | $0.2969 | $0.1573 |
| 2012 | $0.0968 | $0.0094 | $0.0380 |
| 2011 | $0.0959 | $0.0000 | $0.0000 |
| 2010 | $0.0800 | $0.0000 | $0.0000 |
| 2009 | $0.0793 | $0.0000 | $0.0000 |
| 2008 | $0.1306 | $0.0500 | $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:
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Commentary (As of February 29, 2020)
Highlights
Portfolio attribution
Causeway Global Value Fund ("Fund") underperformed the Index during the month, due primarily to stock selection. Holdings in the software & services, energy, pharmaceuticals & biotechnology, media & entertainment, and capital goods industry groups detracted from performance compared to the Index. Fund holdings in the technology hardware & equipment, consumer services, and insurance industry groups, as well as an underweight position in the consumer durables & apparel and diversified financials industry groups, contributed to relative performance. The largest detractor was travel & tourism technology company, Sabre Corp. (United States). Additional notable detractors included energy exploration & production company, Halliburton Co. (United States), media company, ViacomCBS, Inc. (United States), enterprise infrastructure software company, Micro Focus International Plc (United Kingdom), and diversified chemicals manufacturer, BASF SE (Germany). The top contributor to return was life insurer, Prudential Plc (United Kingdom). Other notable contributors included Norwegian Cruise Line Holdings Ltd. (United States), paper & packaging producer, WestRock Co. (United States), defense & information technology services provider, Leidos Holdings, Inc. (United States), and mining company, Freeport-McMoRan, Inc. (United States).
Investment outlook
Panic can be one of the best times to invest fundamentally – especially with a value approach. The recent market downdraft has presented Causeway with a rare opportunity to build positions in high-quality companies in some of the industries most impacted by short-term fear, such as transportation, travel and leisure. Though we anticipate temporary earnings reductions for these hardest-hit stocks in the short-term, assets have not been impaired and we are confident in these companies’ management teams. Valuations are increasingly attractive given the precipitous stock price drops in recent weeks. Many multinational companies, as well as those operating entirely in their domestic markets, will likely continue to suffer supply chain delays and rising costs, largely from work disruption in China, Japan, South Korea, and parts of Europe. We believe, however, the earnings and cash flow setbacks will ultimately be temporary, and normalcy should return to supply chains and logistics as virus fears recede over time. Though the nature of the late February selloff broadly punished equities, we have seen the continued divergence between economically cyclical and defensive areas of the markets. In a demand slowdown, we believe stocks at the intersection of cash flow constraints and high debt levels will face larger challenges, which underscores our emphasis on portfolio companies exhibiting superior balance sheet strength. We believe our overweight position in cyclical stocks relative to broad benchmarks positions our client portfolios for an eventual recovery in demand for the goods and services from some of the world’s, in our view, best-managed companies with strong balance sheets able to withstand the temporary slowdown. As we await clarity on the virus and its economic effects, the dividend income from our portfolio holdings is even more attractive relative to sinking bond yields. If the coronavirus does not spark a prolonged period of demand destruction, we feel confident that these companies can maintain their dividends.
Effective October 1, 2018, the Global Value Fund’s benchmark changed from the MSCI World Index (Gross) to the MSCI ACWI Index (Gross). Causeway believes that the MSCI ACWI Index (Gross), which includes emerging as well as developed markets, better represents the types of securities in which the strategy invests. 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. A company may reduce or eliminate its dividend, causing losses to a fund. 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.