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*
+19.06%
Nav*
$12.87, +0.10
Inception
January 31, 2011
Cusip
14949P604
Benchmark
MSCI ACWI
Minimum Investment
$5,000
Sales Charge
None
Net Expense Ratio
1.14%
Gross Expense Ratio
1.50%
*As of September 11, 2023
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Strategy overview

The portfolio managers discuss our Global Value strategy.

Portfolio managers

Fundamental Portfolio Manager
Fundamental Portfolio Manager
President
Head of Fundamental Research
Fundamental Portfolio Manager
Chief Executive Officer
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 1.6%20.5%29.8%16.4%6.6%7.2%7.3%
MSCI ACWI 0.8%15.2%14.5%7.7%8.0%9.1%8.5%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 1.6%20.5%29.8%16.4%6.6%7.2%7.3%
MSCI ACWI 0.8%15.2%14.5%7.7%8.0%9.1%8.5%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 4.8%18.6%28.1%17.8%7.1%7.5%7.3%
MSCI ACWI 6.3%14.3%17.1%11.5%8.6%9.3%8.6%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 4.8%18.6%28.1%17.8%7.1%7.5%7.3%
MSCI ACWI 6.3%14.3%17.1%11.5%8.6%9.3%8.6%
20222021202020192018201720162015201420132012
Fund -12.3%16.1%7.2%21.1%-11.2%17.6%7.4%-6.6%5.2%29.0%16.2%
MSCI ACWI -18.0%19.0%16.8%27.3%-8.9%24.6%8.5%-1.8%4.7%23.4%16.8%
Fund
MSCI ACWI
20222021202020192018201720162015201420132012
-12.3%16.1%7.2%21.1%-11.2%17.6%7.4%-6.6%5.2%29.0%16.2%
-18.0%19.0%16.8%27.3%-8.9%24.6%8.5%-1.8%4.7%23.4%16.8%

Portfolio (as of August 31, 2023)

Benchmark: MSCI ACWI
Asset Allocation
Fund
Stocks 97.5%
Cash 2.5%
Fund Characteristics
Fund Benchmark
No. of holdings 54 2934
Weighted avg. market cap (US $MM) $98,508 $398,523
FY2 price/earnings 11.8 15.4
Price/book value 1.8 2.8
Net assets $4,511,510 -
TOP 10 HOLDINGS
Security Country Percent
Rolls-Royce Holdings Plc United Kingdom 6.1%
Samsung Electronics Co., Ltd. South Korea 3.7%
Alphabet, Inc. United States 3.2%
SAP SE Germany 2.9%
Enel SpA Italy 2.7%
BP Plc United Kingdom 2.5%
Murata Manufacturing Co. Ltd. Japan 2.5%
Genpact Ltd. United States 2.5%
The Walt Disney Co. United States 2.5%
TD SYNNEX Corp. United States 2.4%

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 17.2% 22.1%
Industrials 15.2% 10.4%
Financials 14.9% 15.4%
Health Care 13.1% 11.8%
Consumer Staples 8.4% 7.2%
Communication Services 8.1% 7.5%
Energy 6.1% 4.9%
Materials 4.8% 4.5%
Utilities 4.6% 2.6%
Consumer Discretionary 3.8% 11.3%
Real Estate 1.6% 2.3%
TOP 10 COUNTRIES
Country Fund Benchmark
United States 37.5% 62.7%
United Kingdom 21.1% 3.5%
France 11.1% 3.0%
South Korea 5.6% 1.3%
Italy 5.0% 0.6%
Japan 4.5% 5.5%
Netherlands 3.9% 1.1%
Germany 3.8% 2.1%
Switzerland 2.2% 2.5%
Spain 1.3% 0.6%
Regional Allocation
  • Europe – other 48.3%
  • North America 37.5%
  • Emerging Asia 6.6%
  • Pacific 4.5%
  • Emerging Latin America 0.6%

Commentary (As of August 31, 2023)

Highlights

  • Global equity markets paused their rally in August, dipping slightly lower for the month. Expectations of a higher-for-longer interest rate environment and apprehensions surrounding China's slowing economy tempered market enthusiasm.
  • Economic signals in developed economies are mixed. In August, US wages rose year-over-year and employers added jobs, yet the unemployment rate crept up to 3.8%. The core personal consumption expenditures price index rose 0.2% in July, the smallest uptick since late 2020, yet inflation-adjusted consumer spending experienced its greatest increase year-to-date. Euro area inflation for the year-to-date through August period was 5.3%, well exceeding the central bank's 2% policy target, although consumer price increases excluding energy and food cooled.
  • In 2023, global equity markets have signaled economic slowing ahead via the underperformance of cyclical sectors such as financials, materials, and industrials. Yet economically defensive sectors such as utilities, consumer staples, and healthcare also have, uncharacteristically, underperformed. In contrast, information technology—in international and emerging markets as well as the tech-dominant US market—is the largest outperforming sector by a wide margin this year-to-date.

Portfolio attribution

The Causeway Global Value Fund ("Fund") outperformed the Index during the month, due primarily to stock selection. Fund holdings in the capital goods, software & services, and health care equipment & services industry groups contributed to relative performance. Holdings in the insurance, pharmaceuticals & biotechnology, and banks industry groups offset some of the outperformance compared to the Index. The top contributor to return was jet engine manufacturer, Rolls-Royce Holdings Plc (United Kingdom). Other notable contributors included healthcare equipment & services provider, Koninklijke Philips NV (Netherlands), and technology conglomerate, Alphabet, Inc. (United States). The largest detractor was electronic equipment manufacturer, Samsung Electronics Co., Ltd. (South Korea). Additional notable detractors included Asian life insurer, Prudential Plc (United Kingdom), and global financial services giant, Citigroup, Inc. (United States).

Economic outlook

Economic signals in developed economies are mixed. In August, US wages rose year-over-year and employers added jobs, yet the unemployment rate crept up to 3.8%. The core personal consumption expenditures price index rose 0.2% in July, the smallest uptick since late 2020, yet inflation-adjusted consumer spending experienced its greatest increase year-to-date. Euro area inflation for the year-to-date through August period was 5.3%, well exceeding the central bank's 2% policy target, although consumer price increases excluding energy and food cooled. Central bank officials must assess if slowing growth can sufficiently reduce inflation or if further rate hikes are warranted. We expect unemployment to rise in the US, UK and Europe in the first half of 2024 as credit conditions tighten further. The Bank of Japan stated its economy may be reaching a turning point in its 25-year battle with deflation. Official measures showed Japanese demand outpacing supply for the first time in four years.

All eyes are on China as the world’s second-largest economy grapples with a slumping property sector and slowing real GDP growth. China is deploying measures to shore up its property market and address vulnerabilities in its financial system and currency, yet investors remain concerned about the repercussions of flagging Chinese activity on the greater global economy. In coordination with members of our Shanghai-based research subsidiary, Causeway analysts are performing diligent research on companies exposed to the Chinese economy, including goods and commodities suppliers and links in Chinese supply chains.

Investment outlook

In 2023, global equity markets have signaled economic slowing ahead via the underperformance of cyclical sectors such as financials, materials, and industrials. Yet economically defensive sectors such as utilities, consumer staples, and healthcare also have, uncharacteristically, underperformed. In contrast, information technology—in international and emerging markets as well as the tech-dominant US market—is the largest outperforming sector by a wide margin this year-to-date. We believe enthusiasm for artificial-intelligence-related applications has overwhelmed concerns about economic sensitivity. As technology garners most of the attention, we are looking at more unpopular areas of markets. Our team aims to find investment opportunities in companies that can accelerate earnings and cash flows (“underearners”), largely independent of broad macroeconomic trends. These include currently misunderstood and out-of-favor companies in industries such as insurance, chemicals, and consumer non-durables.

In an environment where expensive stocks may be increasingly vulnerable to de-rating, we believe Causeway fundamental client portfolios should be relatively resilient against valuation multiple compression. We generally use conservative assumptions in our stock valuation models, adhere to a multi-year investment horizon, and integrate in-house quantitative risk analysis into our portfolio construction process. Market volatility provides our portfolio management team an opportunity to add to vetted investment candidates at attractive entry points, supporting our efforts to generate competitive returns on behalf of our clients.

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
2022 $0.0688 $0.0000 $0.0000
2021 $0.0596 $0.1541 $0.1704
2020 $0.1352 $0.0000 $0.0000
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: