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*
+12.97%
Nav*
$17.77, +0.11
Inception
December 31, 2009
Cusip
14949Q107
Benchmark
MSCI ACWI ex US
Minimum Investment
$1,000,000
Sales Charge
None
Gross Expense Ratio
1.02%
Net Expense Ratio
0.95%
*As of November 07, 2024
**Contractual fee waivers are in effect until 1/31/2025.

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 -4.4%11.3%26.3%7.0%8.2%5.2%6.2%
MSCI ACWI ex US -4.9%9.1%25.0%2.1%6.3%5.3%5.4%
QTD YTD 1 year3 years5 years10 years Since inception
Fund -4.4%11.3%26.3%7.0%8.2%5.2%6.2%
MSCI ACWI ex US -4.9%9.1%25.0%2.1%6.3%5.3%5.4%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 7.8%16.5%27.0%8.9%10.2%5.6%6.6%
MSCI ACWI ex US 8.2%14.7%26.0%4.7%8.1%5.7%5.8%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 7.8%16.5%27.0%8.9%10.2%5.6%6.6%
MSCI ACWI ex US 8.2%14.7%26.0%4.7%8.1%5.7%5.8%
20232022202120202019201820172016201520142013201220112010
Fund 24.8%-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 16.2%-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
20232022202120202019201820172016201520142013201220112010
24.8%-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%
16.2%-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 September 30, 2024)

Benchmark: MSCI ACWI ex US
Asset Allocation
Fund
Stocks 98.5%
Cash 1.5%
Fund Characteristics
Fund Benchmark
No. of holdings 238 2094
Weighted avg. market cap (US $MM) $78,169 $90,777
FY2 price/earnings 10.5 13.1
Price/book value 1.5 1.9
Net assets $260,130,728 -
TOP 10 HOLDINGS
Security Country Percent
Rolls-Royce Holdings Plc United Kingdom 3.4
Alstom SA France 2.6
Barclays PLC United Kingdom 2.4
Taiwan Semiconductor Manufacturing Co., Ltd. Taiwan 2.2
Reckitt Benckiser Group Plc United Kingdom 2.2
Akzo Nobel Netherlands 2.0
Roche Holding AG Switzerland 1.9
Tencent Holdings Ltd. China 1.9
Renesas Electronics Corp. Japan 1.9
BP Plc United Kingdom 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
Financials 16.4% 22.5%
Industrials 16.1% 13.8%
Information Technology 14.5% 12.8%
Health Care 9.9% 9.4%
Consumer Staples 9.0% 7.4%
Consumer Discretionary 8.3% 11.3%
Materials 6.3% 7.1%
Equity Funds 5.1% 0.0%
Communication Services 4.6% 5.6%
Energy 3.7% 5.0%
Utilities 3.5% 3.2%
Real Estate 1.2% 1.9%
TOP 10 COUNTRIES
Country Fund Benchmark
United Kingdom 20.6% 9.3%
France 11.5% 7.1%
Japan 8.7% 14.0%
China 8.6% 8.2%
India 6.8% 5.8%
Germany 6.6% 5.7%
Taiwan 5.9% 5.2%
Netherlands 4.9% 3.0%
Multi-National Developed 4.6% 0.0%
South Korea 4.0% 3.1%
Regional Allocation
  • Europe – other 51.8%
  • Emerging Asia 26.7%
  • Pacific 9.7%
  • Multi Region Developed 4.6%
  • Emerging Europe, Middle East, Africa 1.9%
  • North America 1.7%
  • Emerging Latin America 1.2%
  • Multi Region All Country 0.4%
  • Developed Middle East 0.4%

Commentary (As of September 30, 2024)

Highlights

  • Global stock markets climbed in September, led by a rally in China, while other markets were buoyed by central banks lowering short-term interest rates.
  • Chinese authorities, recognizing the inadequacy of recent efforts, have introduced aggressive measures to stimulate their economy. The People’s Bank of China (PBOC) cut the required reserve ratio for Chinese banks by 50 basis points, a larger reduction than most investors anticipated, freeing up approximately 1 trillion yuan for new lending.
  • We believe it is essential to remain valuation-focused and disciplined amid market gyrations. We aim to construct well-balanced Causeway client portfolios with structural winners, cyclical beneficiaries, and unique operational restructuring opportunities. These characteristics typically result in portfolio companies capable of reaccelerating earnings and cash flow growth.

Portfolio Attribution

The Causeway International Opportunities Fund (“Fund”) on a net asset value basis, underperformed the Index during the month. On a gross return basis, Fund holdings in the semiconductors & semi equipment, consumer durables & apparel, and technology hardware & equipment industry groups detracted from relative performance. Investments in the software & services, consumer discretionary distribution & retail, and pharmaceuticals & biotechnology industry groups contributed to relative performance. The largest individual detractors from absolute returns included semiconductor company, Renesas Electronics Corp. (Japan), multinational luxury conglomerate, Kering SA (France), and electronic equipment manufacturer, Samsung Electronics Co., Ltd. (South Korea). The greatest individual contributors to absolute returns included jet engine manufacturer, Rolls-Royce Holdings Plc (United Kingdom), online services company, Tencent Holdings Ltd. (China), and paints & coatings producer, Akzo Nobel (Netherlands).

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. Our earnings growth and risk aversion indicators are currently positive for emerging markets in our model. Valuation and macroeconomic are negative for emerging markets. Our quality metrics, which include such measures as profit margins and return on equity, are neutral.

Quarterly Investment Outlook

Chinese authorities, recognizing the inadequacy of recent efforts, have introduced aggressive measures to stimulate their economy. The People's Bank of China (PBOC) cut the required reserve ratio for Chines banks by 50 basis points, a larger reduction than most investors anticipated. The PBOC also increased financing availability for stock repurchase activity, which we believe will support China’s equity markets. On the consumption side, several Chinese cities and provinces have announced vouchers to bolster spending in a variety of goods and services, including traveling, dine-in, and sports. The Fund was modestly overweight Chinese stocks at quarter-end due in part to valuation considerations. The European Central Bank cut rates by 25 basis points in September, after a June reduction, and the Federal Reserve followed with a 50 basis point cut. In France, an uneasy coalition is poised to address fiscal imbalances, including reversing some of President Macron's 2017 corporate tax cuts. The US presidential election will be important for global markets, given the differing policy prescriptions of both candidates. Despite escalating conflict in the Middle East, energy markets have thus far remained stable, likely due to China's economic weakness.

We believe it is essential to remain valuation-focused and disciplined amid market gyrations. We aim to construct well-balanced Causeway client portfolios with structural winners, cyclical beneficiaries, and unique operational restructuring opportunities. These characteristics typically result in portfolio companies capable of reaccelerating earnings and cash flow growth. We designed our investment process to produce long-term performance independent of market noise, election outcomes, or short-term sentiment. We believe our ability to generate alpha over full market cycles comes from identifying valuation gaps and strong industry fundamentals, and assessing how companies adapt to changing market conditions.

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
2023 $0.4007 $0.0000 $0.0282
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: