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*
-33.05%
Nav*
$6.97, +0.11
Inception
January 31, 2011
Cusip
14949P604
Benchmark
MSCI ACWI
Minimum Investment
$5,000
Sales Charge
None
Net Expense Ratio
1.30%
Gross Expense Ratio
1.33%
*As of April 07, 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
Fundamental Portfolio Manager

Performance

QTD YTD 1 year3 years5 years10 years Since inception
Fund -35.1%-35.1%-28.9%-8.0%-3.8%0.0%2.1%
MSCI ACWI -21.3%-21.3%-10.8%2.0%3.4%6.4%5.8%
QTD YTD 1 year3 years5 years10 years Since inception
Fund -35.1%-35.1%-28.9%-8.0%-3.8%0.0%2.1%
MSCI ACWI -21.3%-21.3%-10.8%2.0%3.4%6.4%5.8%
QTD YTD 1 year3 years5 years10 years Since inception
Fund -35.1%-35.1%-28.9%-8.0%-3.8%0.0%2.1%
MSCI ACWI -21.3%-21.3%-10.8%2.0%3.4%6.4%5.8%
QTD YTD 1 year3 years5 years10 years Since inception
Fund -35.1%-35.1%-28.9%-8.0%-3.8%0.0%2.1%
MSCI ACWI -21.3%-21.3%-10.8%2.0%3.4%6.4%5.8%
20192018201720162015201420132012
Fund 21.1%-11.2%17.6%7.4%-6.6%5.2%29.0%16.2%
MSCI ACWI 27.3%-8.9%24.6%8.5%-1.8%4.7%23.4%16.8%
Fund
MSCI ACWI
20192018201720162015201420132012
21.1%-11.2%17.6%7.4%-6.6%5.2%29.0%16.2%
27.3%-8.9%24.6%8.5%-1.8%4.7%23.4%16.8%

Portfolio (as of February 29, 2020)

Benchmark: MSCI ACWI
Asset Allocation
Fund
Stocks 97.7%
Cash 2.3%
Fund Characteristics
Fund Benchmark
No. of holdings 51 3043
Weighted avg. market cap (US $MM) $82,831 $163,206
FY2 price/earnings 9.8 14.0
Price/book value 1.3 2.2
Net assets $1,024,050 -
TOP 10 HOLDINGS
Security Country Percent
Volkswagen AG Germany 4.1%
Takeda Pharmaceutical Co., Ltd. Japan 3.6%
UniCredit S.p.A. Italy 3.3%
ABB Ltd. Switzerland 3.2%
SYNNEX Corp. United States 3.2%
BASF SE Germany 3.1%
Samsung Electronics Co., Ltd. South Korea 3.1%
British American Tobacco plc United Kingdom 2.8%
Rolls-Royce Holdings Plc United Kingdom 2.8%
China Mobile Ltd. China 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
Industrials 19.6% 10.1%
Information Technology 17.4% 18.1%
Financials 12.9% 16.1%
Health Care 11.4% 11.9%
Communication Services 10.5% 9.1%
Materials 8.5% 4.5%
Consumer Discretionary 6.5% 10.9%
Energy 5.5% 4.5%
Consumer Staples 2.8% 8.1%
Utilities 2.6% 3.5%
Real Estate 0.0% 3.3%
TOP 10 COUNTRIES
Country Fund Benchmark
United States 36.9% 56.2%
United Kingdom 13.0% 4.5%
Germany 12.1% 2.5%
Switzerland 7.2% 2.8%
Japan 7.0% 7.1%
China 5.4% 4.4%
South Korea 5.1% 1.4%
France 3.4% 3.2%
Italy 3.3% 0.7%
Netherlands 2.6% 1.2%
Regional Allocation
  • Europe – other 42.5%
  • North America 37.7%
  • Emerging Asia 10.5%
  • Pacific 7.0%

Commentary (As of February 29, 2020)

Highlights

  • We expect the outbreak of the coronavirus to weigh on global gross domestic product (“GDP”) growth, with the greatest drag on China and South Korea, as well as already weak economies in Europe and Japan.
  • Monetary policymakers have already begun implementing supportive measures to ease the financial pain of a prolonged slowdown. A more direct response to counter the effects of the demand slowdown from coronavirus is fiscal stimulus. We believe the virus outbreak may act as a catalyst for European economies, in particular, to enact fiscal stimulus.
  • The recent market downdraft has presented Causeway with a rare opportunity to build positions in high-quality companies in some of the industries most impacted by short-term fear, such as transportation, travel and leisure. We believe our overweight position in cyclical stocks relative to broad benchmarks positions our client portfolios for an eventual recovery in demand for the goods and services from some of the world’s, in our view, best-managed companies with strong balance sheets able to withstand the temporary slowdown.

Portfolio attribution

Causeway Global Value Fund ("Fund") underperformed the Index during the month, due primarily to stock selection. Holdings in the software & services, energy, pharmaceuticals & biotechnology, media & entertainment, and capital goods industry groups detracted from performance compared to the Index. Fund holdings in the technology hardware & equipment, consumer services, and insurance industry groups, as well as an underweight position in the consumer durables & apparel and diversified financials industry groups, contributed to relative performance. The largest detractor was travel & tourism technology company, Sabre Corp. (United States). Additional notable detractors included energy exploration & production company, Halliburton Co. (United States), media company, ViacomCBS, Inc. (United States), enterprise infrastructure software company, Micro Focus International Plc (United Kingdom), and diversified chemicals manufacturer, BASF SE (Germany). The top contributor to return was life insurer, Prudential Plc (United Kingdom). Other notable contributors included Norwegian Cruise Line Holdings Ltd. (United States), paper & packaging producer, WestRock Co. (United States), defense & information technology services provider, Leidos Holdings, Inc. (United States), and mining company, Freeport-McMoRan, Inc. (United States).

Investment outlook

Panic can be one of the best times to invest fundamentally – especially with a value approach. The recent market downdraft has presented Causeway with a rare opportunity to build positions in high-quality companies in some of the industries most impacted by short-term fear, such as transportation, travel and leisure. Though we anticipate temporary earnings reductions for these hardest-hit stocks in the short-term, assets have not been impaired and we are confident in these companies’ management teams. Valuations are increasingly attractive given the precipitous stock price drops in recent weeks. Many multinational companies, as well as those operating entirely in their domestic markets, will likely continue to suffer supply chain delays and rising costs, largely from work disruption in China, Japan, South Korea, and parts of Europe. We believe, however, the earnings and cash flow setbacks will ultimately be temporary, and normalcy should return to supply chains and logistics as virus fears recede over time. Though the nature of the late February selloff broadly punished equities, we have seen the continued divergence between economically cyclical and defensive areas of the markets. In a demand slowdown, we believe stocks at the intersection of cash flow constraints and high debt levels will face larger challenges, which underscores our emphasis on portfolio companies exhibiting superior balance sheet strength. We believe our overweight position in cyclical stocks relative to broad benchmarks positions our client portfolios for an eventual recovery in demand for the goods and services from some of the world’s, in our view, best-managed companies with strong balance sheets able to withstand the temporary slowdown. As we await clarity on the virus and its economic effects, the dividend income from our portfolio holdings is even more attractive relative to sinking bond yields. If the coronavirus does not spark a prolonged period of demand destruction, we feel confident that these companies can maintain their dividends.

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 $0.3207 $0.1359 0.0305
2018 $0.1809 $0.2508 $1.2062
2017 $0.2082 $0.4167 $0.1330
2016 $0.1309 $0.0000 $0.0000
2015 $0.0931 $0.0000 $0.2089
2014 $0.1985 $0.3781 $0.5989
2013 $0.0921 $0.2969 $0.1573
2012 $0.0874 $0.0094 $0.0380
2011 $0.8360 $0.0000 $0.0000
2010 $0.0000 $0.0000 $0.0000
2009 $0.0000 $0.0000 $0.0000
2008 $0.0000 $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: