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*
-0.86%
Nav*
$10.37, +0.04
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 February 19, 2020

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
Fundamental Portfolio Manager

Performance

QTD YTD 1 year3 years5 years10 years Since inception
Fund -4.2%-4.2%7.9%6.1%4.6%8.8%4.8%
MSCI ACWI -1.1%-1.1%16.7%11.6%9.1%9.7%6.0%
QTD YTD 1 year3 years5 years10 years Since inception
Fund -4.2%-4.2%7.9%6.1%4.6%8.8%4.8%
MSCI ACWI -1.1%-1.1%16.7%11.6%9.1%9.7%6.0%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 11.0%21.2%21.2%8.3%5.1%9.0%5.2%
MSCI ACWI 9.1%27.3%27.3%13.0%9.0%9.4%6.2%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 11.0%21.2%21.2%8.3%5.1%9.0%5.2%
MSCI ACWI 9.1%27.3%27.3%13.0%9.0%9.4%6.2%
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 January 31, 2020)

Benchmark: MSCI ACWI
Asset Allocation
Fund
Stocks 98.2%
Cash 1.8%
Fund Characteristics
Fund Benchmark
No. of holdings 48 3045
Weighted avg. market cap (US $MM) $89,837 $176,691
FY2 price/earnings 11.5 15.5
Price/book value 1.5 2.4
Net assets $78,751,380 -
TOP 10 HOLDINGS
Security Country Percent
Volkswagen AG Germany 4.0%
Takeda Pharmaceutical Co., Ltd. Japan 3.6%
UniCredit S.p.A. Italy 3.3%
China Mobile Ltd. China 3.3%
BASF SE Germany 3.2%
SYNNEX Corp. United States 3.2%
British American Tobacco plc United Kingdom 3.2%
ABB Ltd. Switzerland 3.1%
Sabre Corp. United States 3.1%
Samsung Electronics Co., Ltd. South Korea 2.9%

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
Industrials 18.3% 10.3%
Information Technology 17.5% 17.8%
Communication Services 12.3% 8.8%
Financials 11.5% 16.4%
Health Care 11.2% 11.7%
Energy 8.8% 4.8%
Materials 8.2% 4.5%
Consumer Discretionary 4.6% 10.8%
Consumer Staples 3.2% 8.1%
Utilities 2.7% 3.5%
Real Estate 0.0% 3.2%
TOP 10 COUNTRIES
Country Fund Benchmark
United States 36.7% 56.3%
United Kingdom 15.4% 4.7%
Germany 11.6% 2.5%
Japan 8.2% 7.1%
China 5.7% 4.0%
Switzerland 5.5% 2.8%
South Korea 5.0% 1.4%
France 3.4% 3.3%
Italy 3.3% 0.7%
Netherlands 2.4% 1.1%
Regional Allocation
  • Europe – other 41.6%
  • North America 37.7%
  • Emerging Asia 10.7%
  • Pacific 8.2%

Commentary (As of January 31, 2020)

Highlights

  • After delivering impressive returns in calendar 2019, equity markets faltered in January in local currency terms, as concerns over the coronavirus outbreak may have weighed on investor optimism.
  • In China, key infrastructure and travel were shut down in an attempt to slow the spread of the coronavirus, which will likely be a near-term drag on Chinese (and global) economic growth. Chinese authorities will likely enact additional targeted stimulus in response to the outbreak.
  • Our fundamental research seeks to identify well-managed companies with strong balance sheets, with company leaders committed to improving earnings. As we wait for these companies to emerge from operational setbacks and reignite growth, they typically generate sufficient cash flow to reward shareholders via dividends and share buybacks.

Portfolio attribution

Causeway Global Value Fund ("Fund") underperformed the Index during the month, due primarily to stock selection. Holdings in the energy, media & entertainment, software & services, materials, and automobiles & components industry groups detracted from performance compared to the Index. Fund holdings in the retailing, capital goods, food beverage & tobacco, and technology hardware & equipment industry groups, as well as an underweight position in the consumer durables & apparel industry group, contributed to relative performance. The largest detractor was oil exploration & production company, Ovintiv (Canada). Additional notable detractors included automobile manufacturer, Volkswagen AG (Germany), ViacomCBS, Inc. (United States), diversified chemicals manufacturer, BASF SE (Germany), and banking & financial services company, UniCredit S.p.A. (Italy). The top contributor to return was specialty retail jeweler, Signet Group (United States). Other notable contributors included power & healthcare conglomerate, General Electric Co.(United States), design-to-distribution business process services technology company, SYNNEX Corp. (United States), software giant, Microsoft Corp. (United States), and British American Tobacco plc (United Kingdom).

Investment outlook

In the prevailing global interest rate environment with the opportunity cost of owning long duration growth stocks low to negative, investors have continued to bid up expensive stocks to even higher valuations. Should these seemingly speculative, currently high valuation stocks fail to live up to their elevated expectations, we anticipate that the stable cash flows of economically sensitive, yet financially robust, companies would attract investor attention. Our fundamental research seeks to identify well-managed companies with strong balance sheets, with company leaders committed to improving earnings. As we wait for these companies to emerge from operational setbacks and reignite growth, they typically generate sufficient cash flow to reward shareholders via dividends and share buybacks. In the current low interest rate environment, we find the income from these undervalued stocks especially compelling as a major component of 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: