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*
- +9.85%
- Nav*
- $9.93, -0.08
- Inception
- April 29, 2008
- Cusip
- 14949P307
- Benchmark
- MSCI ACWI
- Minimum Investment
- $1,000,000
- Sales Charge
- None
- Net Expense Ratio
- 1.05%
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 the chair of the Los Angeles World Affairs Council, a director of the Los Angeles Philharmonic, the Music Center Foundation (as chair of the investment committee), and serves on the Advisory Board of Girls Who Invest.
Harry Hartford
Head of Fundamental Research
Fundamental Portfolio Manager
Mr. Hartford is the president at Causeway, fundamental portfolio manager, and director of 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 & 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, telecommunications and healthcare. 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 and industrials 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 & Wiley division of Merrill Lynch Investment Managers (HW-MLIM). In 1996, Mr. Eng worked as a summer research associate for Hotchkis & 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 and financials 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, utilities, and energy 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 energy, utilities, and healthcare sectors. He joined the firm in April 2012.
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 1/31/20. The net expense ratio for Institutional Class shares is 1.05%. The net expense ratio for Investor Class shares is 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 (as of June 30, 2019)
Asset Allocation
| Fund | |
|---|---|
| Stocks | 97.9% |
| Cash | 2.1% |
Fund Characteristics
| Fund | Benchmark | |
|---|---|---|
| No. of holdings | 49 | 2848 |
| Weighted avg. market cap (US $MM) | $76,660 | $136,599 |
| FY2 price/earnings | 10.8 | 14.4 |
| Price/book value | 1.4 | 2.3 |
| Net assets | $83,522,977 | - |
TOP 10 HOLDINGS
| Security | Country | Percent |
|---|---|---|
| Volkswagen AG | Germany | 3.8% |
| Takeda Pharmaceutical Co., Ltd. | Japan | 3.5% |
| UniCredit S.p.A. | Italy | 3.3% |
| China Mobile Ltd. | China | 3.1% |
| BASF SE | Germany | 3.0% |
| Sabre Corp. | United States | 3.0% |
| Micro Focus International Plc | United Kingdom | 2.9% |
| Alaska Air Group, Inc. | United States | 2.9% |
| ABB Ltd. | Switzerland | 2.8% |
| Prudential Plc | United Kingdom | 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 | 16.8% | 16.0% |
| Industrials | 15.4% | 10.5% |
| Financials | 15.3% | 16.9% |
| Communication Services | 11.8% | 8.7% |
| Health Care | 10.6% | 11.4% |
| Energy | 8.7% | 5.9% |
| Materials | 7.0% | 4.9% |
| Consumer Discretionary | 4.3% | 10.8% |
| Consumer Staples | 4.1% | 8.3% |
| Utilities | 3.8% | 3.3% |
| Real Estate | 0.0% | 3.2% |
TOP 10 COUNTRIES
testing| Country | Fund | Benchmark |
|---|---|---|
| United States | 37.7% | 55.3% |
| United Kingdom | 19.3% | 5.0% |
| Japan | 11.0% | 7.1% |
| Germany | 6.8% | 2.6% |
| China | 5.4% | 3.7% |
| South Korea | 4.5% | 1.5% |
| Switzerland | 4.4% | 2.8% |
| Italy | 3.3% | 0.7% |
| France | 2.0% | 3.4% |
| Netherlands | 1.8% | 1.1% |
Regional Allocation
- North America 39.2%
- Europe – other 37.4%
- Pacific 11.0%
- Emerging Asia 9.9%
- Emerging Europe, Middle East, Africa 0.4%
Distributions
| Dividends | Short-term capital gains | Long-term capital gains | |
|---|---|---|---|
| 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 June 30, 2019)
Highlights
Portfolio attribution
Causeway Global Value Fund ("Fund") outperformed the Index during the month, due primarily to stock selection. Fund holdings in the software & services, materials, banks, and energy industry groups, as well as an underweight position in the real estate industry group, contributed to relative performance. Holdings in the telecommunication services, retailing, and health care equipment & services industry groups, along with an underweight position in the semiconductors & semi equipment and consumer durables & apparel industry groups, detracted from relative performance. The top contributor to return was oil refiner, Marathon Petroleum Corp. (United States). Other notable contributors included automobile manufacturer, Volkswagen AG (Germany), electronic equipment manufacturer, Samsung Electronics Co., Ltd. (South Korea), industrial gas company, Linde Plc (United States), and global financial services giant, Citigroup, Inc. (United States). The largest detractor was oil & natural gas producer, Encana (Canada). Additional notable detractors included jet engine manufacturer, Rolls-Royce Holdings Plc (United Kingdom), specialty retail jeweler, Signet Group (United States), major passenger railway operator, East Japan Railway Co. (Japan), and telecommunication services provider, KDDI Corp. (Japan).
Investment outlook
The 2019 G20 summit struck a tone of geopolitical fragmentation as major relationships worldwide shift and nationalistic sentiment increases. Though we do not believe globalization will reverse, global equity markets appear to disagree with us. Economically defensive stocks have generally reached, in our view, extreme valuation highs, and economically sensitive cyclical stocks have lagged. The decline in bond yields in major economies globally has also dampened investor enthusiasm for cyclicality, and favored long duration growth stocks. When the price of money (aka borrowing) falls to such low levels, investors typically get more desperate to buy growth at increasingly higher valuations. Can central banks, especially the Fed, prolong the post-2008 economic expansion by ultra-accommodative monetary policy? And if they cannot, how deep a recession would the US and other economies endure? Rather than wait for an economic cycle turn that may or may not occur, we seek to build an “all weather” portfolio not entirely dependent on a return of value's dominance over growth. Our research focuses on companies with managements implementing operational improvements that translate to greater efficiency and expansion potential. We believe this operational “self-help” should deliver an improvement in earnings and free cash flow growth. We seek companies returning excess capital to shareholders so that we can reinvest those proceeds. Income (via dividends and share buybacks) has historically been an important component of total return in any interest rate environment.
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.