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*
+15.18%
Nav*
$12.52, -0.02
Inception
April 29, 2008
Cusip
14949P307
Benchmark
MSCI ACWI
Minimum Investment
$1,000,000
Sales Charge
None
Net Expense Ratio
0.89%
Gross Expense Ratio
1.25%
*As of May 09, 2023
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Strategy overview

The portfolio managers discuss our Global Value strategy.

Portfolio managers

Fundamental Portfolio Manager
Fundamental Portfolio Manager
President
Head of Fundamental Research
Fundamental Portfolio Manager
Chief Executive Officer
Fundamental Portfolio Manager
Fundamental Portfolio Manager
Fundamental Portfolio Manager
Fundamental Portfolio Manager
Fundamental Portfolio Manager

Performance

QTD YTD 1 year3 years5 years10 years Since inception
Fund 2.7%16.3%16.5%21.1%6.7%7.6%5.7%
MSCI ACWI 1.5%9.0%2.6%12.6%7.6%8.5%6.3%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 2.7%16.3%16.5%21.1%6.7%7.6%5.7%
MSCI ACWI 1.5%9.0%2.6%12.6%7.6%8.5%6.3%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 13.3%13.3%5.8%24.2%6.7%7.6%5.6%
MSCI ACWI 7.4%7.4%-7.0%15.9%7.5%8.6%6.2%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 13.3%13.3%5.8%24.2%6.7%7.6%5.6%
MSCI ACWI 7.4%7.4%-7.0%15.9%7.5%8.6%6.2%
20222021202020192018201720162015201420132012201120102009
Fund -12.1%16.3%7.4%21.2%-11.1%17.9%7.7%-6.3%5.4%29.2%16.5%-1.3%18.5%40.1%
MSCI ACWI -18.0%19.0%16.8%27.3%-8.9%24.6%8.5%-1.8%4.7%23.4%16.8%-6.9%13.2%35.4%
Fund
MSCI ACWI
20222021202020192018201720162015201420132012201120102009
-12.1%16.3%7.4%21.2%-11.1%17.9%7.7%-6.3%5.4%29.2%16.5%-1.3%18.5%40.1%
-18.0%19.0%16.8%27.3%-8.9%24.6%8.5%-1.8%4.7%23.4%16.8%-6.9%13.2%35.4%

Portfolio (as of April 30, 2023)

Benchmark: MSCI ACWI
Asset Allocation
Fund
Stocks 97.2%
Cash 2.8%
Fund Characteristics
Fund Benchmark
No. of holdings 53 2884
Weighted avg. market cap (US $MM) $92,712 $333,637
FY2 price/earnings 12.5 14.7
Price/book value 1.9 2.6
Net assets $51,014,926 -
TOP 10 HOLDINGS
Security Country Percent
Rolls-Royce Holdings Plc United Kingdom 4.7%
Samsung Electronics Co., Ltd. South Korea 3.5%
Alphabet, Inc. United States 3.2%
Enel SpA Italy 3.2%
SAP SE Germany 2.9%
The Walt Disney Co. United States 2.6%
Ryanair Holdings Plc - ADR Ireland 2.5%
Prudential Plc United Kingdom 2.5%
Meta Platforms, Inc. United States 2.5%
Fiserv, Inc. United States 2.5%

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
Information Technology 21.1% 22.0%
Industrials 17.5% 10.1%
Health Care 11.7% 12.6%
Financials 11.4% 14.1%
Communication Services 9.1% 7.3%
Consumer Staples 7.9% 7.6%
Materials 6.9% 4.8%
Utilities 5.3% 3.0%
Consumer Discretionary 4.1% 10.9%
Real Estate 1.3% 2.4%
Energy 1.0% 5.1%
TOP 10 COUNTRIES
Country Fund Benchmark
United States 34.3% 60.5%
United Kingdom 15.7% 3.9%
France 10.9% 3.3%
Japan 6.8% 5.4%
Italy 5.6% 0.6%
South Korea 4.9% 1.3%
Switzerland 4.2% 2.6%
Netherlands 4.0% 1.1%
Germany 3.9% 2.2%
Ireland 2.5% 0.2%
Regional Allocation
  • Europe – other 48.2%
  • North America 35.8%
  • Pacific 6.8%
  • Emerging Asia 5.7%
  • Emerging Latin America 0.6%

Commentary (As of April 30, 2023)

Highlights

  • Developed equity markets continued to rise in April, with international markets outpacing the US. The energy sector recovered from March lows to lead MSCI EAFE Index (“Index”) sector performance for the month.
  • The US economy may have already entered a stagflation period, likely exacerbated by tightening credit conditions and price rises embedded in wages, goods, and services. Despite headline-generating layoff announcements, payroll figures have been resilient, and the nationwide unemployment rate remains very low at 3.4%.
  • Amid signs of slowing economic activity, we seek to identify economically resilient companies at attractive valuations and avoid companies at cyclical earnings peaks. Consistent across industries is our preference for companies we see generating high levels of free cash flow and for managements willing to return excess capital to shareholders.

Portfolio attribution

The Causeway Global Value Fund ("Fund"), on a net asset value basis, outperformed the Index during the month, due primarily to stock selection. On a gross return basis, Fund holdings in the utilities and banks industry groups, as well as an underweight position in the semiconductors & semi equipment industry group, contributed to relative performance. Holdings in the capital goods, software & services, and technology hardware & equipment industry groups offset some of the outperformance compared to the Index. The top contributor to return was electric, gas & renewables power generation & distribution company, Enel SpA (Italy). Other notable contributors included banking & financial services company, UniCredit S.p.A. (Italy), and social media giant, Meta Platforms, Inc. (United States). The largest detractor was business services provider, Concentrix Corp. (United States). Additional notable detractors included HVAC manufacturer, Carrier Global Corp. (United States), and rolling stock, signaling, & services provider for the rail industry, Alstom SA (France).

Economic outlook

The US economy may have already entered a stagflation period, likely exacerbated by tightening credit conditions and price rises embedded in wages, goods, and services. Despite headline-generating layoff announcements, payroll figures have been resilient, and the nationwide unemployment rate remains very low at 3.4%. Employers who suffered labor shortages during the pandemic may be reluctant to reduce staff. Data suggests the European Central Bank may have flexibility to slow its tightening policy. Although headline Eurozone inflation rose to 7% in April, the rate of core inflation—which removes the volatile food and energy price categories—declined for the first time in ten months, to 5.6%. In both the US and Europe, credit appears to be contracting after recent banking system shocks. As Europe and the US potentially near the end of their rate hike cycles, the Bank of Japan has yet to begin. We expect the Japanese central bank to continue its policy of monetary easing, conducted through yield curve control.

After a robust reopening from Covid lockdowns, Chinese manufacturing contracted in April; China's official purchasing managers' index ("PMI") declined to 49.2. Our fundamental research corroborates this reading. In the materials sector, where China is the world’s largest customer and a critical link in supply chains, companies doing business with China are reporting a weaker recovery than past economic accelerations. Across developed markets, industrial production is declining from peak levels as companies work through backlogs accrued during the pandemic. Our team continues to value and vet industrials companies through our research process; we should be prepared to build exposure to select firms on share price pullbacks.

Investment outlook

Amid signs of slowing economic activity, we seek to identify economically resilient companies at attractive valuations and avoid companies at cyclical earnings peaks. Consistent across industries is our preference for companies we see generating high levels of free cash flow and for managements willing to return excess capital to shareholders. Given the likelihood of recession, we want to see managements apply conservative financial approaches: paying down leverage, controlling expenses, and abstaining from shareholder-dilutive acquisitions. Although portfolio weights in more economically insulated sectors—consumer staples and utilities, for example—are toward the upper bounds of their historical ranges, we remain flexible in our positioning and aim to continue to exploit the full global equity opportunity set.

An ongoing significant valuation discount or “margin of safety” may support international equities’ continued outperformance versus the US as investors, anticipating multiple compression, grow increasingly wary of expensive stocks. Developed international stocks have only been cheaper than they are today for about 5% of the past fifty years, as measured by the nearly two standard deviation discount of the MSCI World ex-USA Index trailing price-to-earnings multiple versus the MSCI USA Index.

By year’s end, we expect some of the most significant returns in excess of the Index should be delivered by companies able to withstand effects of credit contraction, manage cost pressures, and improve productivity. We believe financial strength remains essential, especially in a higher-for-longer interest rate environment. Many of our portfolio companies are engaged in operational restructuring to improve earnings and cash flow. This implies these companies may deliver good news on a recovery in their growth, even as economic conditions remain sluggish. To identify investment candidates, our analysts are collaborating across their sectors to identify attractively valued portfolio candidates. Recent examples include Causeway consumer, industrials, and chemicals analysts valuing an ingredients company; and materials analysts studying a rare earth elements producer with input from automobile and technology analysts and members of our China research subsidiary. We believe understanding a company from multiple industry perspectives provides depth and rigor essential to determining its valuation.

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.

Distributions

Dividends Short-term capital gains Long-term capital gains
2022 $0.0960 $0.0000 $0.0000
2021 $0.0865 $0.1541 $0.1704
2020 $0.1510 $0.0000 $0.0000
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: