Combining our time-tested abilities in developed and emerging international markets

The Fund invests primarily in companies both in developed markets excluding the United States (the “international value portfolio”) and in emerging markets (the “emerging markets portfolio”). Causeway allocates substantially all of the Fund’s assets between the international value portfolio and the emerging markets portfolio using a proprietary asset allocation model.

International Value Portfolio: The international value portfolio consists primarily of common stocks of companies located in developed countries outside the US. Normally, the majority of this portfolio invests in companies that pay dividends or repurchase their shares. The international value portfolio may also invest in companies located in emerging (less developed) markets.

Emerging Markets Portfolio: The emerging markets portfolio is normally invested in equity securities of companies located in emerging (less developed) markets and other investments that are tied economically to emerging markets. Generally, these investments include common stock, preferred and preference stock, American Depositary Receipts, European Depositary Receipts, Global Depositary Receipts, and exchange-traded funds that invest in emerging markets securities.

YTD Return*
+8.49%
Nav*
$14.06, -0.13
Inception
December 31, 2009
Cusip
14949Q107
Benchmark
MSCI ACWI ex US
Minimum Investment
$1,000,000
Sales Charge
None
Net Expense Ratio
0.98%
Gross Expense Ratio
1.00%
*As of March 09, 2023
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Strategy overview

The portfolio managers discuss our International Opportunities strategy.

Portfolio managers

Fundamental Portfolio Manager
Fundamental Portfolio Manager
Quantitative Portfolio Manager
President
Head of Fundamental Research
Fundamental Portfolio Manager
Head of Quantitative Research
Quantitative Portfolio Manager
Quantitative Portfolio Manager
Chief Executive Officer
Fundamental Portfolio Manager
Fundamental Portfolio Manager
Fundamental Portfolio Manager
Quantitative Portfolio Manager
Fundamental Portfolio Manager
Fundamental Portfolio Manager

Performance

QTD YTD 1 year3 years5 years10 years Since inception
Fund 8.1%8.1%-0.7%7.5%1.8%4.1%5.0%
MSCI ACWI ex US 4.3%4.3%-6.7%5.8%2.1%4.4%4.6%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 8.1%8.1%-0.7%7.5%1.8%4.1%5.0%
MSCI ACWI ex US 4.3%4.3%-6.7%5.8%2.1%4.4%4.6%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 18.7%-11.1%-11.1%0.0%-0.1%3.4%4.4%
MSCI ACWI ex US 14.4%-15.6%-15.6%0.5%1.4%4.3%4.3%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 18.7%-11.1%-11.1%0.0%-0.1%3.4%4.4%
MSCI ACWI ex US 14.4%-15.6%-15.6%0.5%1.4%4.3%4.3%
2022202120202019201820172016201520142013201220112010
Fund -11.1%6.6%5.4%21.7%-18.4%29.6%2.0%-6.1%-3.7%17.8%24.6%-12.6%15.4%
MSCI ACWI ex US -15.6%8.3%11.1%22.1%-13.8%27.8%5.0%-5.3%-3.4%15.8%17.4%-13.3%11.6%
Fund
MSCI ACWI ex US
2022202120202019201820172016201520142013201220112010
-11.1%6.6%5.4%21.7%-18.4%29.6%2.0%-6.1%-3.7%17.8%24.6%-12.6%15.4%
-15.6%8.3%11.1%22.1%-13.8%27.8%5.0%-5.3%-3.4%15.8%17.4%-13.3%11.6%

Portfolio (as of February 28, 2023)

Benchmark: MSCI ACWI ex US
Asset Allocation
Fund
Stocks 98.2%
Cash 1.8%
Fund Characteristics
Fund Benchmark
No. of holdings 219 2257
Weighted avg. market cap (US $MM) $57,774 $66,367
FY2 price/earnings 9.9 11.9
Price/book value 1.6 1.7
Net assets $204,452,554 -
TOP 10 HOLDINGS
Security Country Percent
Rolls-Royce Holdings Plc United Kingdom 4.1
UniCredit S.p.A. Italy 3.2
FANUC Corp. Japan 2.5
Enel SpA Italy 2.4
Reckitt Benckiser Group United Kingdom 2.4
Prudential Plc United Kingdom 2.2
SAP SE Germany 2.2
Danone France 2.1
Ryanair Holdings Plc - ADR Ireland 1.9
Amadeus IT Group SA Spain 1.8

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
Industrials 18.1% 12.5%
Financials 18.0% 21.3%
Health Care 12.5% 9.3%
Consumer Staples 11.3% 8.7%
Information Technology 11.2% 11.3%
Consumer Discretionary 8.9% 11.6%
Materials 6.2% 8.2%
Utilities 4.8% 3.1%
Energy 3.7% 5.9%
Communication Services 3.1% 5.9%
Real Estate 0.3% 2.2%
TOP 10 COUNTRIES
Country Fund Benchmark
United Kingdom 21.1% 9.9%
France 12.8% 8.0%
China 9.4% 8.8%
Japan 7.3% 13.8%
Germany 6.0% 5.5%
Italy 5.7% 1.6%
Spain 5.5% 1.7%
Switzerland 4.5% 6.4%
Netherlands 4.3% 2.9%
Taiwan 4.0% 4.2%
Regional Allocation
  • Europe – other 63.4%
  • Emerging Asia 21.6%
  • Pacific 7.3%
  • North America 2.2%
  • Emerging Latin America 1.9%
  • Emerging Europe, Middle East, Africa 1.8%

Commentary (As of February 28, 2023)

Highlights

  • January’s optimism for global markets waned in February, as stubborn inflation led investors to anticipate greater interest rate hikes.
  • February inflation measures for Europe exceeded estimates, prompting markets to discount a more forceful policy response from the European Central Bank (“ECB”). Euro area core inflation, which excludes volatile price categories including energy and food, rose a record 5.6% year-over-year.
  • Capital markets may be bracing for policy rate pressures, but our research continues to identify individual stocks with attractive return prospects. We continue to uncover companies with the potential for higher earnings and cash flow. As long-term investors, we believe that valuation invariably recognizes fundamentals. Shifting macro sentiments may cast ripples across equity markets, but company fundamentals form the bedrock of portfolio returns.

Portfolio Attribution

The Causeway International Opportunities Fund (“Fund”) on a net asset value basis, outperformed the Index during the month. On a gross return basis, fund holdings in the capital goods, transportation, and food beverage & tobacco industry groups contributed to relative performance. Holdings in the diversified financials, automobiles & components, and insurance industry groups detracted from relative performance. The top individual contributors to absolute return were jet engine manufacturer, Rolls-Royce Holdings Plc (United Kingdom), bank, UniCredit S.p.A. (Italy), and crude oil & natural gas company, BP Plc (United Kingdom). The largest individual detractors from absolute return were internet commerce company, Alibaba Group Holding Ltd. (China), life insurer, Prudential Plc (United Kingdom), and pharmaceutical & diagnostics company, Roche Holding AG (Switzerland).

We use a proprietary quantitative equity allocation model that assists the portfolio managers in determining the weight of emerging versus developed markets in the Fund. Our allocation relative to the weight of emerging markets in the Index is currently underweight. We identify five primary factors as most indicative of the ideal allocation target: valuation, quality, earnings growth, macroeconomic, and risk aversion. Valuation is currently positive for emerging markets in our model. Our quality metrics, which include such measures as profit margins and return on equity, are negative. Our earnings growth and macroeconomic factors are negative for emerging markets. Lastly, our risk aversion factor is also negative in our model.

Investment Outlook

Capital markets may be bracing for additional policy rate pressures, but our research continues to identify individual stocks with attractive return prospects. We continue to uncover companies with the potential for higher earnings and cash flow. As long-term investors, we believe that valuation invariably recognizes fundamentals. Shifting macro sentiments may cast ripples across equity markets, but company fundamentals form the bedrock of portfolio returns. Through diligent research, we analyze industry dynamics, assess financial strength, and forecast cash flows to identify companies that we believe can create value for shareholders and generate excess returns for client portfolios across market cycles.

Within emerging markets, we added a new component, the three and six-month change in nominal interest rates, to our currency factor in February. Our research has shown that EM currencies in countries where short-term interest rates are rising have tended to outperform currencies where short-term interest rates are flat or falling, during normal interest rate environments globally. The component did not perform well in the previous decade during a period of significant interest rate repression. However, we believe we are entering a more normalized interest rate environment as global central banks contend with stubbornly high inflation. In such an environment characterized by lower global liquidity, EM central banks should likely be compelled to support their currencies by offering relatively high interest rates.

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. Investing in ETFs is subject to the risks of the underlying funds. Investments in smaller companies typically exhibit higher volatility. Asset allocation may not protect against market risk. 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 $0.3603 $0.0000 $0.0000
2021 $0.2400 $0.0000 $0.0000
2020 $0.1974 $0.0000 $0.0000
2019 $0.3502 $0.0000 $0.0327
2018 $0.2904 $0.0000 $0.0327
2017 $0.2145 $0.0000 $0.0000
2016 $0.4494 $0.0000 $0.0000
2015 $0.1623 $0.0107 $0.0199
2014 $0.0000 $0.0000 $0.4943
2013 $0.1266 $0.0001 $0.0739
2012 $0.2451 $0.0000 $0.0190
2011 $0.2756 $0.0000 $0.0303
2010 $0.1858 $0.0000 $0.1712

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: