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Global Value Fund
Seeking value primarily in developed markets worldwide
NAV (as of 17 Jan 2019)
$9.62, +0.03
YTD
+6.42%
INCEPTION
29 Apr 2008
TICKER/CUSIP
CGVIX/14949P307
Global Value Fund
Fund Profile
The Fund invests primarily in common stocks of companies in developed countries located outside the U.S. and of companies in the U.S. 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 U.S.
| Minimum Investment | $1,000,000 |
| Sales Charge | None |
| Net Expense Ratio | 1.05% |
| Dividend Frequency | Annual |
| Capital Gain Frequency | Annual |
| Benchmark | MSCI ACWI |
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 1/31/19. The net expense ratio for Institutional Class shares are 1.05%. The net expense ratios for Investor Class shares are 1.30%. There is a 2% redemption fee on shares held less than 60 days to protect shareholders from short-term investors. If your account incurred a redemption fee, your performance will be lower than the performance quoted. If you invest through a financial intermediary, it may apply the Fund’s redemption fee or other frequent trading restrictions. 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
Asset Allocation as of 31 Dec 2018
| Stocks | 98.5% |
| Cash | 1.5% |
Characteristics as of 31 Dec 2018
| Causeway | MSCI ACWI | |
|---|---|---|
| No. of Holdings | 51 | 2757 |
| Wtd. Avg. Market Cap (Mn $US) | $64,121 | $112,201 |
| FY2 Price/Earnings | 10.1 | 12.9 |
| Price/Book Value | 1.3 | 2.1 |
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.
SECTOR WEIGHTS as of 31 Dec 2018
| Financials | 19.01% |
| Information Technology | 14.25% |
| Communication Services | 12.91% |
| Industrials | 12.87% |
| Health Care | 10.32% |
| Materials | 8.50% |
| Energy | 6.64% |
| Consumer Discretionary | 6.28% |
| Consumer Staples | 4.15% |
| Utilities | 3.58% |
| Real Estate | 0.00% |
(VS. Benchmark)
| Financials | 17.22% |
| Information Technology | 14.85% |
| Communication Services | 8.98% |
| Industrials | 10.29% |
| Health Care | 12.11% |
| Materials | 4.98% |
| Energy | 6.18% |
| Consumer Discretionary | 10.44% |
| Consumer Staples | 8.43% |
| Utilities | 3.36% |
| Real Estate | 3.18% |
Financials
Information Technology
Communication Services
Industrials
Health Care
Materials
Energy
Consumer Discretionary
Consumer Staples
Utilities
Real Estate
Other
TOP 10 COUNTRIES as of 31 Dec 2018
| United States | 34.26% |
| United Kingdom | 20.09% |
| Japan | 10.71% |
| Germany | 10.07% |
| China | 5.95% |
| Switzerland | 5.83% |
| Italy | 3.17% |
| Canada | 3.12% |
| South Korea | 2.48% |
| Netherlands | 2.46% |
| Turkey | 0.38% |
| United Arab Emirates | 0.00% |
| Brazil | 0.00% |
| Chile | 0.00% |
| Colombia | 0.00% |
| Mexico | 0.00% |
| Peru | 0.00% |
| India | 0.00% |
| Indonesia | 0.00% |
| Malaysia | 0.00% |
| Pakistan | 0.00% |
| Philippines | 0.00% |
| Taiwan | 0.00% |
| Thailand | 0.00% |
| Czech Republic | 0.00% |
| Egypt | 0.00% |
| Greece | 0.00% |
| Hungary | 0.00% |
| Poland | 0.00% |
| Qatar | 0.00% |
| Russia | 0.00% |
| South Africa | 0.00% |
| Norway | 0.00% |
| Portugal | 0.00% |
| Spain | 0.00% |
| Sweden | 0.00% |
| Israel | 0.00% |
| Austria | 0.00% |
| Belgium | 0.00% |
| Denmark | 0.00% |
| Finland | 0.00% |
| France | 0.00% |
| Ireland | 0.00% |
| New Zealand | 0.00% |
| Singapore | 0.00% |
| Australia | 0.00% |
| Hong Kong | 0.00% |
(VS. Benchmark)
| United States | 54.41% |
| United Kingdom | 5.21% |
| Japan | 7.58% |
| Germany | 2.71% |
| China | 3.60% |
| Switzerland | 2.66% |
| Italy | 0.70% |
| Canada | 2.95% |
| South Korea | 1.63% |
| Netherlands | 1.06% |
| Turkey | 0.07% |
| United Arab Emirates | 0.09% |
| Brazil | 0.89% |
| Chile | 0.13% |
| Colombia | 0.05% |
| Mexico | 0.33% |
| Peru | 0.05% |
| India | 1.11% |
| Indonesia | 0.27% |
| Malaysia | 0.29% |
| Pakistan | 0.00% |
| Philippines | 0.13% |
| Taiwan | 1.35% |
| Thailand | 0.29% |
| Czech Republic | 0.02% |
| Egypt | 0.01% |
| Greece | 0.03% |
| Hungary | 0.04% |
| Poland | 0.15% |
| Qatar | 0.13% |
| Russia | 0.44% |
| South Africa | 0.74% |
| Norway | 0.23% |
| Portugal | 0.05% |
| Spain | 0.95% |
| Sweden | 0.84% |
| Israel | 0.17% |
| Austria | 0.07% |
| Belgium | 0.29% |
| Denmark | 0.54% |
| Finland | 0.32% |
| France | 3.42% |
| Ireland | 0.17% |
| New Zealand | 0.07% |
| Singapore | 0.42% |
| Australia | 2.13% |
| Hong Kong | 1.20% |
United States
United Kingdom
Japan
Germany
China
Switzerland
Italy
Canada
South Korea
Netherlands
Turkey
United Arab Emirates
Brazil
Chile
Colombia
Mexico
Peru
India
Indonesia
Malaysia
Pakistan
Philippines
Taiwan
Thailand
Czech Republic
Egypt
Greece
Hungary
Poland
Qatar
Russia
South Africa
Norway
Portugal
Spain
Sweden
Israel
Austria
Belgium
Denmark
Finland
France
Ireland
New Zealand
Singapore
Australia
Hong Kong
Other
TOP 10 HOLDINGS as of 31 Dec 2018
| Security | Country | Industry | % of Total |
|---|---|---|---|
| Volkswagen AG | Germany | Automobiles & Components | 4.0 |
| Linde Plc | Germany | Materials | 3.5 |
| Takeda Pharmaceutical Co., Ltd. | Japan | Pharmaceuticals & Biotechnology | 3.5 |
| UniCredit S.p.A. | Italy | Banks | 3.2 |
| China Mobile Ltd. | China | Telecommunication Services | 3.1 |
| Oracle Corp. | United States | Software & Services | 2.9 |
| Prudential Plc | United Kingdom | Insurance | 2.9 |
| Micro Focus International Plc | United Kingdom | Software & Services | 2.9 |
| Citigroup, Inc. | United States | Banks | 2.8 |
| Sabre Corp. | United States | Software & Services | 2.8 |
Holdings are subject to change.
Approach
Causeway Global Value Fund is constructed from an equity universe spanning primarily developed markets, including the United States. Emerging markets investments may also be included. Eligible companies have market capitalizations generally greater than $1 billion. The investment process is comprised of three stages: quantitative screening and initial analysis, fundamental research, and portfolio construction.
Our global investment philosophy is value-driven with a fundamentally based, bottom-up approach to stock selection. We believe that companies derive their value from the contribution of yield and profitable re-investment of earnings back into the company.
Our philosophy on risk management is simple. We believe risk is best measured by the volatility of a portfolio's returns, not its dispersion from a benchmark. In our view, investors are rewarded over the long term by a reduction in volatility. Our goal is to construct a portfolio that provides consistent long-term, risk-adjusted returns.
Causeway Global Value Fund is a fully invested, typically 35-55 stock portfolio, typically with a value bias. Sector and regional weights are by-products of our bottom-up approach to stock selection.
Commentary
PERFORMANCE REVIEW for the month ended 31 Dec 2018
Heightened geopolitical tensions and concerns of a broader slowdown in global economic growth pressured equity markets in December. The top performing markets in our investable universe were Mexico, Malaysia, the Philippines, Peru, and Indonesia. The worst performing markets were Israel, Austria, Pakistan, Belgium, and the United States. The best performing sectors in the MSCI ACWI Index (“Index”) were utilities, materials, and real estate. The worst performing sectors were energy, health care, and financials.
Causeway Global Value Fund ("Fund") underperformed the Index during the month, due primarily to stock selection. Attractive valuations did not provide immunity from the selling, especially in non-US equity markets. Fund holdings in the banks, retailing, software & services, media & entertainment, and insurance industry groups detracted from relative performance. Holdings in the telecommunication services, utilities, and pharmaceuticals & biotechnology industry groups, as well as an overweight position in the materials industry group and an underweight position in the technology hardware & equipment industry group, offset some of the underperformance. The largest detractor was global financial services giant, Citigroup, Inc. (United States). Additional notable detractors included specialty retail jeweler, Signet Group (United States), refining equipment manufacturer, Flowserve Corp. (United States), travel & tourism technology company, Sabre Corp. (United States), and energy exploration & production company, Halliburton Co. (United States). The top contributor to return was telecommunication services provider, KDDI Corp. (Japan). Other notable contributors included design-to-distribution business process services technology company, SYNNEX Corp. (United States), FedEx Corp. (United States), industrial gas company, Linde Plc (Germany), and electric & natural gas utility, Dominion Energy, Inc. (United States).
*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.
Dividends
| 2018 | $0.1956 |
| 2017 | $0.2363 |
| 2016 | $0.1493 |
| 2015 | $0.1251 |
| 2014 | $0.2232 |
| 2013 | $0.1162 |
| 2012 | $0.0968 |
| 2011 | $0.0959 |
| 2010 | $0.0800 |
| 2009 | $0.0793 |
| 2008 | $0.1306 |
Short-term Capital Gains
| 2018 | $0.2508 |
| 2017 | $0.41672 |
| 2016 | $0.0000 |
| 2015 | $0.0000 |
| 2014 | $0.3781 |
| 2013 | $0.2969 |
| 2012 | $0.0094 |
| 2011 | $0.0000 |
| 2010 | $0.0000 |
| 2009 | $0.0000 |
| 2008 | $0.0000 |
Long-term Capital Gains
| 2018 | $1.2062 |
| 2017 | $0.13304 |
| 2016 | $0.0000 |
| 2015 | $0.2089 |
| 2014 | $0.5989 |
| 2013 | $0.1573 |
| 2012 | $0.0380 |
| 2011 | $0.0000 |
| 2010 | $0.0000 |
| 2009 | $0.0000 |
| 2008 | $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).
