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*
-19.89%
Nav*
$8.38, +0.10
Inception
April 29, 2008
Cusip
14949P307
Benchmark
MSCI ACWI
Minimum Investment
$1,000,000
Sales Charge
None
Net Expense Ratio
1.05%
Gross Expense Ratio
1.08%
*As of July 02, 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 15.3%-25.0%-12.3%-4.1%-1.3%6.4%2.5%
MSCI ACWI 15.6%-8.9%6.0%5.7%5.9%9.1%5.1%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 15.3%-25.0%-12.3%-4.1%-1.3%6.4%2.5%
MSCI ACWI 15.6%-8.9%6.0%5.7%5.9%9.1%5.1%
QTD YTD 1 year3 years5 years10 years Since inception
Fund -35.0%-35.0%-28.7%-7.8%-3.6%3.7%1.4%
MSCI ACWI -21.3%-21.3%-10.8%2.0%3.4%6.4%3.9%
QTD YTD 1 year3 years5 years10 years Since inception
Fund -35.0%-35.0%-28.7%-7.8%-3.6%3.7%1.4%
MSCI ACWI -21.3%-21.3%-10.8%2.0%3.4%6.4%3.9%
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 May 31, 2020)

Benchmark: MSCI ACWI
Asset Allocation
Fund
Stocks 99.0%
Cash 1.0%
Fund Characteristics
Fund Benchmark
No. of holdings 50 3039
Weighted avg. market cap (US $MM) $81,786 $196,501
FY2 price/earnings 11.6 16.2
Price/book value 1.1 2.2
Net assets $58,749,712 -
TOP 10 HOLDINGS
Security Country Percent
Volkswagen AG Germany 3.7%
SYNNEX Corp. United States 3.7%
UniCredit S.p.A. Italy 3.7%
Takeda Pharmaceutical Co., Ltd. Japan 3.6%
Leidos Holdings, Inc. United States 3.1%
BASF SE Germany 3.0%
Siemens AG Germany 3.0%
Novartis AG Switzerland 2.9%
Citigroup, Inc. United States 2.8%
British American Tobacco plc United Kingdom 2.8%

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 20.8% 19.7%
Industrials 18.9% 9.6%
Financials 15.2% 13.6%
Health Care 11.6% 13.2%
Materials 9.8% 4.6%
Consumer Discretionary 8.9% 11.5%
Communication Services 8.7% 9.4%
Consumer Staples 2.8% 8.3%
Real Estate 1.4% 3.0%
Utilities 0.8% 3.4%
Energy 0.0% 3.8%
TOP 10 COUNTRIES
Country Fund Benchmark
United States 42.3% 58.3%
Germany 13.9% 2.4%
United Kingdom 12.7% 4.0%
Switzerland 7.4% 2.8%
Japan 6.3% 7.3%
South Korea 4.2% 1.4%
Italy 3.7% 0.6%
Netherlands 3.1% 1.2%
China 2.6% 4.5%
France 1.9% 2.9%
Regional Allocation
  • Europe – other 43.8%
  • North America 42.3%
  • Emerging Asia 6.7%
  • Pacific 6.3%

Commentary (As of May 31, 2020)

Highlights

  • Equity markets continued to rally in May, likely responding to massive monetary and fiscal stimulus. Investor bias in favor of growth stocks persisted with the MSCI World Growth Index outpacing the MSCI World Value Index for the fifth month in a row. We anticipate a pickup in global economic activity as countries gradually relax COVID-19 pandemic lockdown measures.
  • Though global fiscal and monetary authorities’ quick action to cushion the economic blow is encouraging, stimulus should end later this year. In the next several months, we expect the private sector in most regions to resume hiring, tap bank credit for resumption of operations, and boost capital expenditures. We believe these actions are likely to push up prices, potentially mitigating the deflationary impact of the lockdowns and lower oil prices.
  • The intense market dislocation resulting from the pandemic afforded us the rare opportunity to purchase portfolio companies exhibiting, in our view, extreme undervaluation. We believe these companies have recovery potential in earnings and cash flow growth, and quality characteristics such as talented management, defensible market position, and financial strength.

Portfolio attribution

Causeway Global Value Fund ("Fund") modestly underperformed the Index during the month, due primarily to stock selection. Holdings in the software & services, capital goods, transportation, insurance, and consumer services industry groups detracted from performance compared to the Index. Fund holdings in the banks, technology hardware & equipment, materials, semiconductors & semi equipment, and media & entertainment industry groups contributed to relative performance. The largest detractor was jet engine manufacturer, Rolls-Royce Holdings Plc (United Kingdom). Additional notable detractors included life & health reinsurance company, Reinsurance Group of America, Inc. (United States), enterprise infrastructure software company, Micro Focus International Plc (United Kingdom), passenger & cargo airline company, Air France-KLM SA (France), and power & healthcare conglomerate, General Electric Co. (United States). The top contributor to return was design -to-distribution business process services technology company, SYNNEX Corp. (United States). Other notable contributors included industrial conglomerate, Siemens AG (Germany), banking & financial services company, UniCredit S.p.A. (Italy), semiconductor company, Infineon Technologies AG (Germany), and media company, ViacomCBS, Inc. (United States).

Investment outlook

The speed and magnitude of stimulus from global central banks and governments has likely allowed investors to anticipate the recovery. Market volatility remains high (relative to early February, before the acceleration of the pandemic), as the path to widely available COVID-19 therapies and vaccines remains unclear. Against this backdrop, we have increased our exposure to companies in the most severely impacted segments of the market (such as banks, transportation, and capital goods) that we believe boast superior balance sheet strength and liquidity positions with the potential to withstand the downturn in revenues. We also deployed capital to growth-oriented cyclical stocks—largely in the technology sector—that currently trade at undemanding valuations. The intense market dislocation resulting from the pandemic afforded us the rare opportunity to purchase portfolio companies exhibiting, in our view, extreme undervaluation, recovery potential in earnings and cash flow growth, and quality characteristics such as talented management, defensible market position, and financial strength. Based on the last three market cycles, and the recent recovery in markets from the late March 2020 lows, we are convinced that cyclical sectors will – once again –outperform the more defensive areas of the market. We believe that this crisis has brought the extraordinary occasion to own some of the best positioned cyclical companies in materials, consumer discretionary, industrials (especially capital goods), and financials. The potential for a resumption in dividend payout for a wide array of companies we believe, should add another important component to total return.

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: