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*
+2.20%
Nav*
$10.69, -0.01
Inception
April 29, 2008
Cusip
14949P307
Benchmark
MSCI ACWI
Minimum Investment
$1,000,000
Sales Charge
None
Net Expense Ratio
0.85%
Gross Expense Ratio
1.08%
*As of November 27, 2020
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Strategy overview

The portfolio managers discuss our Global Value strategy.

Portfolio managers

Chief Executive Officer
Fundamental Portfolio Manager
President
Head of Fundamental Research
Fundamental Portfolio Manager
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 -1.6%-21.1%-15.5%-4.2%1.0%5.1%2.9%
MSCI ACWI -2.4%-0.7%5.4%6.1%8.7%8.5%5.7%
QTD YTD 1 year3 years5 years10 years Since inception
Fund -1.6%-21.1%-15.5%-4.2%1.0%5.1%2.9%
MSCI ACWI -2.4%-0.7%5.4%6.1%8.7%8.5%5.7%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 1.2%-19.9%-11.0%-3.3%2.5%5.7%3.0%
MSCI ACWI 8.3%1.8%11.0%7.7%10.9%9.1%5.9%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 1.2%-19.9%-11.0%-3.3%2.5%5.7%3.0%
MSCI ACWI 8.3%1.8%11.0%7.7%10.9%9.1%5.9%
20192018201720162015201420132012201120102009
Fund 21.2%-11.1%17.9%7.7%-6.3%5.4%29.2%16.5%-1.3%18.5%40.1%
MSCI ACWI 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
20192018201720162015201420132012201120102009
21.2%-11.1%17.9%7.7%-6.3%5.4%29.2%16.5%-1.3%18.5%40.1%
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 October 31, 2020)

Benchmark: MSCI ACWI
Asset Allocation
Fund
Stocks 99.1%
Cash 0.9%
Fund Characteristics
Fund Benchmark
No. of holdings 53 2994
Weighted avg. market cap (US $MM) $63,403 $249,218
FY2 price/earnings 11.4 17.0
Price/book value 1.1 2.4
Net assets $47,223,922 -
TOP 10 HOLDINGS
Security Country Percent
Volkswagen AG Germany 3.4%
UniCredit S.p.A. Italy 3.4%
Samsung Electronics Co., Ltd. South Korea 3.2%
Google United States 3.1%
Ashland United States 3.0%
SYNNEX Corp. United States 3.0%
Takeda Pharmaceutical Co., Ltd. Japan 2.7%
Leidos Holdings, Inc. United States 2.7%
General Electric Co. United States 2.7%
BASF SE Germany 2.6%

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
Financials 22.4% 12.7%
Information Technology 20.0% 21.2%
Industrials 19.4% 9.6%
Consumer Discretionary 9.5% 13.0%
Communication Services 7.0% 9.7%
Health Care 6.2% 12.3%
Materials 5.6% 4.8%
Real Estate 3.3% 2.7%
Consumer Staples 2.0% 7.8%
Energy 2.0% 2.7%
Utilities 1.8% 3.2%
TOP 10 COUNTRIES
Country Fund Benchmark
United States 50.3% 58.1%
Germany 10.5% 2.4%
United Kingdom 7.4% 3.4%
Switzerland 6.1% 2.7%
Japan 5.5% 6.9%
South Korea 4.7% 1.5%
France 4.2% 2.8%
Italy 3.4% 0.6%
Netherlands 2.2% 1.2%
Spain 1.9% 0.6%
Regional Allocation
  • North America 51.6%
  • Europe – other 35.7%
  • Emerging Asia 6.3%
  • Pacific 5.5%

Commentary (As of October 31, 2020)

Highlights

  • Optimism surrounding additional fiscal stimulus packages in the US and Europe bolstered equity markets in the first half of October; however, renewed coronavirus lockdowns in several European countries and a surge in cases in the US weakened investor sentiment and developed markets finished the month in negative territory.
  • In the UK, the deadline to negotiate a Brexit deal marches closer without a resolution. Ultimately, we believe that a deal will be reached to prevent a further dampening of the UK economy in the face of the pandemic-induced recession.
  • We believe that undervaluation alone is never enough, so we seek businesses that have used this crisis to reduce their cost bases by unprecedented levels, which should reinvigorate earnings as demand improves.

Portfolio attribution

Causeway Global Value Fund ("Fund") outperformed the Index during the month, due primarily to stock selection. Fund holdings in the capital goods, real estate, transportation, and technology hardware & equipment industry groups, as well as an underweight position in the software & services industry group, contributed to performance relative to the Index. Holdings in the pharmaceuticals & biotechnology,banks, materials, retailing, and automobiles & components industry groups offset some of the outperformance versus the Index. The top contributor to return was jet engine manufacturer, Rolls-Royce Holdings Plc (United Kingdom). Other notable contributors included power & healthcare conglomerate, General Electric Co. (United States), commercial real estate services provider, Jones Lang LaSalle, Inc. (United States), technology conglomerate, Google (United States), and life & health reinsurance company, Reinsurance Group of America, Inc. (United States). The largest detractor was Takeda Pharmaceutical Co., Ltd. (Japan). Additional notable detractors included banking & financial services company, UniCredit S.p.A. (Italy), pharmaceutical producer, Novartis AG (Switzerland), diversified chemicals manufacturer, BASF SE (Germany), and insurer, AXA SA (France).

Investment outlook

We currently expect an end to the extremely negative economic effects wrought on the global economy by the pandemic in 2021, facilitated by widely available and efficacious testing, therapies, and potential vaccines. We used October’s weakness in COVID-sensitive stocks to add to positions that we believe have some of the highest expected returns in the portfolio. With no relief from the pandemic thus far in early November, market participants have sold several stocks that we consider having significant potential upside from current prices. Some of our favorites include well-managed travel and aerospace equipment-related businesses, as well as those in travel software & services. In financials, our investment theses do not depend on rising nominal interest rates for our portfolio companies to perform well. For example, European and Japanese banks and insurance companies have contended with low-to-negative interest rates for the past several years, yet valuations are currently trading at three standard deviations below the post-2008 Global Financial Crisis mean. Several of these banks boast capital positions well in excess of regulatory requirements. As we ultimately exit the COVID-19 crisis, we expect these financials to rebound in profitability. That recovery, combined with financial strength, provides the potential for these stocks to re-rate upward. Our analysis indicates that these companies are well-positioned to return excess capital to shareholders. We believe that undervaluation alone is never enough, so we seek businesses that have used this crisis to reduce their cost bases by unprecedented levels, which should reinvigorate earnings as demand improves. Well-managed cyclical stocks trade at prices that imply permanent demand destruction, and the COVID-19 pandemic presents, in our view, a once-in-a-generation opportunity for disciplined value investors.

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
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: