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*
+17.06%
Nav*
$12.97, -0.05
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
1.25%
*As of June 14, 2021
Download Profile Sheet Download Prospectus
Contact Us

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 5.1%16.1%66.3%10.6%10.8%8.1%6.4%
MSCI ACWI 6.1%11.1%42.5%14.4%14.8%10.2%7.6%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 5.1%16.1%66.3%10.6%10.8%8.1%6.4%
MSCI ACWI 6.1%11.1%42.5%14.4%14.8%10.2%7.6%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 10.5%10.5%82.5%9.7%10.6%8.1%6.1%
MSCI ACWI 4.7%4.7%55.3%12.7%13.8%9.7%7.2%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 10.5%10.5%82.5%9.7%10.6%8.1%6.1%
MSCI ACWI 4.7%4.7%55.3%12.7%13.8%9.7%7.2%
202020192018201720162015201420132012201120102009
Fund 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 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
202020192018201720162015201420132012201120102009
7.4%21.2%-11.1%17.9%7.7%-6.3%5.4%29.2%16.5%-1.3%18.5%40.1%
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 May 31, 2021)

Benchmark: MSCI ACWI
Asset Allocation
Fund
Stocks 97.9%
Cash 2.1%
Fund Characteristics
Fund Benchmark
No. of holdings 54 2986
Weighted avg. market cap (US $MM) $122,982 $269,387
FY2 price/earnings 15.2 17.5
Price/book value 2.4 3.0
Net assets $64,075,321 -
TOP 10 HOLDINGS
Security Country Percent
Alphabet Inc. United States 4.0%
Samsung Electronics Co., Ltd. South Korea 3.5%
Ashland Global Holdings, Inc. United States 3.2%
Rolls-Royce Holdings Plc United Kingdom 3.2%
Novartis AG Switzerland 3.0%
Sabre Corp. United States 2.9%
Sanofi France 2.8%
Essent Group United States 2.7%
Booking Holdings, Inc. United States 2.7%
UniCredit S.p.A. Italy 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
Information Technology 26.1% 20.9%
Industrials 14.5% 10.1%
Health Care 13.5% 11.4%
Financials 11.9% 14.8%
Communication Services 8.5% 9.3%
Consumer Discretionary 6.3% 12.6%
Materials 6.2% 5.2%
Utilities 5.5% 2.8%
Energy 2.6% 3.3%
Consumer Staples 1.6% 7.0%
Real Estate 1.3% 2.6%
TOP 10 COUNTRIES
Country Fund Benchmark
United States 53.2% 57.8%
Switzerland 9.0% 2.5%
France 7.8% 3.0%
Germany 6.5% 2.5%
South Korea 6.2% 1.7%
Japan 5.3% 6.0%
Italy 3.7% 0.7%
United Kingdom 3.2% 3.8%
Canada 1.9% 2.9%
Spain 1.1% 0.7%
Regional Allocation
  • North America 55.1%
  • Europe – other 30.8%
  • Emerging Asia 6.2%
  • Pacific 5.3%
  • Emerging Latin America 0.1%

Commentary (As of April 30, 2021)

Highlights

  • The worldwide drive to stimulate economic activity and vaccinate populations added demand to equity buying in April with most major developed market indices closing at 10-year-highs.
  • With consumers beginning to unleash pent up demand, the effects of fiscal and monetary stimulus continuing to permeate the global economy, and with supply constraints intensifying, inflationary pressures are starting to emerge.
  • In asset markets awash in monetary liquidity, the price discounting mechanism has accelerated, and stock prices have reflected future good news quickly, sometimes long before earnings uplift occurs. At present, we are more interested in defensive companies that have lagged the cyclical rally.

Portfolio attribution

The Causeway Global Value Fund ("Fund") underperformed the Index during the month, due primarily to stock selection. Fund holdings in the pharmaceuticals & biotechnology, materials, semiconductors & semi equipment, technology hardware & equipment, and software & services industry groups detracted from relative performance. Holdings in the media & entertainment and insurance industry groups, as well as an underweight position in the automobiles & components, household & personal products, and food & staples retailing industry groups, offset some of the underperformance compared to the Index. The largest detractor was Takeda Pharmaceutical Co., Ltd. (Japan). Additional notable detractors included specialty chemicals manufacturer, Ashland Global Holdings, Inc. (United States), integrated oil & gas company, Total (France), airline, AIR Canada (Canada), and oil exploration & production company, ConocoPhillips (United States). The top contributor to return was technology conglomerate, Alphabet Inc. (United States). Other notable contributors included mortgage insurance provider, Essent Group (United States), business process outsourcing services provider, Genpact Ltd. (United States), pharmaceutical giant, Sanofi (France), and online travel agency, Booking Holdings, Inc. (United States).

Investment outlook

Since November 2020, global equity markets have generally favored companies poised to benefit from economic reopening and recovery. As we have noted in prior reviews, cyclical sectors usually outperform market indices in periods following recessions and market lows, as earnings momentum shifts in favor of economically sensitive businesses. This cycle has fit that pattern, with extremely rapid and large increases in the share prices of cyclical companies. Within the MSCI ACWI Index, the industrials, materials, energy, consumer discretionary, and financials sectors on average delivered 103% absolute returns from the Covid-19 crisis market trough in March 2020 through April 2021, outperforming the other sectors in the Index by 35%. Given the rapid upward re-rating, we have responded by reducing the portfolio’s cyclical exposure and reinvesting sale proceeds into, in our view, high quality, less economically sensitive businesses with less earnings volatility. For example, we exited what had once been one of the largest-weighted holdings in client fundamental portfolios, an auto manufacturer that finally was recognized for its electric vehicle transition. After a period of strong performance, based on our analysis, its risk-adjusted expected return ranked less competitively relative to other stocks. In asset markets awash in monetary liquidity, the price discounting mechanism has accelerated, and stock prices have reflected future good news quickly, sometimes long before earnings uplift occurs. At present, we are more interested in defensive companies that have lagged the cyclical rally, including innovative pharmaceutical companies trading near all-time-low relative valuations, and forward-thinking utilities repositioning their companies for the renewable energy transition. We have also been adding to defensive information technology companies that generate recurring revenue from critical infrastructure software. The portfolio remains cyclically positioned, but we believe its lowered risk profile, diversified across risk factors, should be resilient in a broader range of market outcomes. Generally, our portfolio companies are engaged in operational restructuring. We believe we have identified companies that used the Covid-19 crisis to cut costs and boost efficiency and should emerge from the pandemic with improved earnings power and a stronger competitive positioning. We expect these companies to re-rate upward as the market recognizes their progress and look forward to increasing levels of capital returned to shareholders with dividends and share buybacks.

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
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: