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*
$12.13, +0.15
December 31, 2009
Minimum Investment
Sales Charge
Net Expense Ratio
Gross Expense Ratio
*As of August 05, 2020
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Strategy overview

The portfolio managers discuss our International Opportunities strategy.

Portfolio managers

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


QTD YTD 1 year3 years5 years10 years Since inception
Fund 2.3%-15.0%-5.2%-2.6%0.1%4.1%3.9%
MSCI ACWI ex US 4.5%-6.7%1.1%1.9%3.7%5.0%4.4%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 2.3%-15.0%-5.2%-2.6%0.1%4.1%3.9%
MSCI ACWI ex US 4.5%-6.7%1.1%1.9%3.7%5.0%4.4%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 20.0%-16.9%-9.4%-2.2%-0.5%4.9%3.7%
MSCI ACWI ex US 16.3%-10.8%-4.4%1.6%2.7%5.5%4.0%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 20.0%-16.9%-9.4%-2.2%-0.5%4.9%3.7%
MSCI ACWI ex US 16.3%-10.8%-4.4%1.6%2.7%5.5%4.0%
Fund 21.7%-18.4%29.6%2.0%-6.1%-3.7%17.8%24.6%-12.6%15.4%
MSCI ACWI ex US 22.1%-13.8%27.8%5.0%-5.3%-3.4%15.8%17.4%-13.3%11.6%

Portfolio (as of June 30, 2020)

Benchmark: MSCI ACWI ex US
Asset Allocation
Stocks 97.5%
Cash 2.5%
Fund Characteristics
Fund Benchmark
No. of holdings 193 2371
Weighted avg. market cap (US $MM) $67,213 $64,845
FY2 price/earnings 11.0 14.2
Price/book value 1.1 1.6
Net assets $177,281,449 -
Security Country Percent
Volkswagen AG Germany 3.2
UniCredit S.p.A. Italy 2.9
BASF SE Germany 2.7
ABB Ltd. Switzerland 2.6
Siemens AG Germany 2.4
Tencent Holdings Ltd. China 2.2
Novartis AG Switzerland 2.2
FANUC Corp. Japan 2.1
Takeda Pharmaceutical Co., Ltd. Japan 2.1
British American Tobacco plc United Kingdom 2.0

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 Fund Benchmark
Financials 20.4% 18.1%
Industrials 18.1% 11.4%
Information Technology 13.2% 11.0%
Consumer Discretionary 10.6% 12.6%
Health Care 9.5% 10.7%
Materials 8.6% 7.6%
Consumer Staples 6.3% 10.0%
Communication Services 5.3% 7.6%
Energy 3.5% 4.8%
Utilities 1.3% 3.5%
Real Estate 0.8% 2.8%
Country Fund Benchmark
Germany 17.8% 6.0%
United Kingdom 14.9% 9.1%
China 12.4% 11.7%
Switzerland 7.4% 6.7%
France 7.4% 7.1%
Japan 7.3% 16.5%
Taiwan 4.7% 3.5%
South Korea 4.3% 3.3%
Netherlands 3.6% 2.8%
Italy 3.5% 1.5%
Regional Allocation
  • Europe – other 59.9%
  • Emerging Asia 25.2%
  • Pacific 7.3%
  • Emerging Europe, Middle East, Africa 2.6%
  • Emerging Latin America 2.5%
  • North America 0.0%

Commentary (As of June 30, 2020)


  • Bolstered by enormous monetary and fiscal stimulus policies globally, equity markets continued to ascend from their late-March lows, with emerging market (“EM”) equities outperforming developed market peers. Although the valuation gap between growth stocks and value stocks grew even wider, global central bank liquidity injection fueled a resurgence of cyclical stocks over defensive stocks during the second quarter.
  • Worldwide, central banks indicated they are prepared to continue supportive policies to maintain abundant monetary liquidity and keep their respective government and corporate borrowing costs low. We anticipate that monetary and fiscal policy responses from major economies will continue until economic data indicate a sustainable recovery has taken hold.
  • Cyclical stocks have traditionally performed best as markets begin to discount a recovery from the lows of recession. We are taking advantage of investor pessimism (and investors’ possible short time horizons) by adding to positions in several competitively, and potentially well-positioned companies, at valuations we believe imply permanent demand destruction.

Portfolio attribution

Causeway International Opportunities Fund (“Fund”) outperformed the Index during the month, due primarily to stock selection. Fund holdings in the capital goods, materials, healthcare equipment & services, and consumer durables & apparel industry groups, as well as an overweight position in the semiconductors & semi equipment industry group, contributed to relative performance. Holdings in the pharmaceuticals & biotechnology,retailing, software & services, and consumer services industry groups, along with an underweight position in the diversified financials industry group, offset some of the outperformance versus the Index. The top contributor to return was online services company, Tencent Holdings Ltd. (China). Other notable contributors included power & automation technology company, ABB Ltd. (Switzerland), diversified chemicals manufacturer, BASF SE (Germany), mail, express & logistics services provider, Deutsche Post AG (Germany), and banking & financial services company, UniCredit S.p.A. (Italy). The largest detractor was Takeda Pharmaceutical Co., Ltd. (Japan). Additional notable detractors included low-budget airline, Ryanair Holdings (Ireland), mining company, MMC Norilsk Nickel PJSC (Russia), contract food service company, Compass Group Plc (United Kingdom), and British American Tobacco Plc (United Kingdom).

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 overweight. 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 positive. Our earnings growth factor is positive, while our macroeconomic factor is neutral for emerging markets. Lastly, our risk aversion factor is neutral in our model.

Investment outlook

With vaccines potentially available by year-end 2020 or early 2021, we believe equity markets have more upside potential. In the latter half of 2020, we believe markets should benefit further from a recovery in both consumption and investment spending. The second quarter of 2020 was the strongest quarter for global equities since 2009, in part thanks to the unprecedented levels of central bank purchases of financial securities and record setting low bond yields. The persistent decline in long term bond yields partly explains the widening gap in performance between growth and value investment styles. However, we believe this valuation disparity will reverse as economies potentially move through the worst of their lockdown-induced recessions. Although the rally in equity markets from late-March lows was primarily driven by liquidity, a nascent economic recovery helped economically sensitive stocks outperform traditionally defensive stocks during the quarter. This suggests, in our view, that cyclical stocks, hardest hit in the first quarter selloff, have further recovery potential. We believe operating leverage should propel earnings growth for cyclical companies should revenues continue to recover towards pre-pandemic levels and slimmer cost bases boost profit margins. Cyclical stocks have traditionally performed best as markets begin to discount a recovery from the lows of recession. This may be especially true of the recession caused by the coronavirus, given extraordinary fiscal spending and efforts to stimulate the economic recovery. We are taking advantage of investor pessimism (and investors’ possible short time horizons) by adding to positions in what we believe are several competitively well-positioned companies, at valuations we further believe imply permanent demand destruction. We currently expect temporary, not structural, changes to aerospace, aviation, travel & leisure, and a host of cyclical industries such as banking, insurance, and industrials.

While strong absolute performance in broader markets has typically provided a good backdrop for value stocks, this was not the case in June as the MSCI Emerging Markets Value Index lagged the MSCI Emerging Markets Growth Index. The MSCI EM Value Index is trading at a sizable discount based on both price-to-earnings and price-to-book value ratios. We continue to emphasize value factors in our investment process and we believe that value’s relative performance should improve given the discount offered by value stocks currently.

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.


Dividends Short-term capital gains Long-term capital gains
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).


Fund information: