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*
$16.20, +0.03
December 31, 2009
Minimum Investment
Sales Charge
Net Expense Ratio
Gross Expense Ratio
*As of June 14, 2021
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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
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


QTD YTD 1 year3 years5 years10 years Since inception
Fund 5.5%12.2%50.2%6.7%9.4%5.1%6.6%
MSCI ACWI ex US 6.3%10.1%43.4%9.4%11.4%5.8%6.6%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 5.5%12.2%50.2%6.7%9.4%5.1%6.6%
MSCI ACWI ex US 6.3%10.1%43.4%9.4%11.4%5.8%6.6%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 6.4%6.4%61.9%4.4%8.6%5.0%6.2%
MSCI ACWI ex US 3.6%3.6%50.0%7.0%10.3%5.4%6.1%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 6.4%6.4%61.9%4.4%8.6%5.0%6.2%
MSCI ACWI ex US 3.6%3.6%50.0%7.0%10.3%5.4%6.1%
Fund 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 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 May 31, 2021)

Benchmark: MSCI ACWI ex US
Asset Allocation
Stocks 97.2%
Cash 2.8%
Fund Characteristics
Fund Benchmark
No. of holdings 156 2359
Weighted avg. market cap (US $MM) $90,412 $80,149
FY2 price/earnings 12.0 14.5
Price/book value 1.6 2.0
Net assets $268,308,976 -
Security Country Percent
UniCredit S.p.A. Italy 2.9
Rolls-Royce Holdings Plc United Kingdom 2.6
Novartis AG Switzerland 2.5
Sanofi France 2.4
Amadeus IT Group SA Spain 2.4
Takeda Pharmaceutical Co., Ltd. Japan 2.3
Roche Holding AG Switzerland 2.2
Tencent Holdings Ltd. China 2.2
SAP SE Germany 2.2
Taiwan Semiconductor Manufacturing Co., Ltd. - ADR Taiwan 2.1

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 20.6% 19.2%
Industrials 16.7% 11.8%
Information Technology 14.3% 12.6%
Health Care 11.3% 9.0%
Consumer Discretionary 7.2% 13.6%
Consumer Staples 7.2% 8.5%
Materials 7.1% 8.5%
Energy 5.3% 4.4%
Utilities 3.7% 3.1%
Communication Services 3.5% 6.8%
Real Estate 0.3% 2.6%
Country Fund Benchmark
France 13.2% 7.2%
United Kingdom 12.5% 9.0%
China 10.1% 11.7%
Switzerland 9.7% 5.9%
Germany 8.7% 5.9%
Japan 7.5% 14.2%
Spain 6.4% 1.6%
South Korea 5.2% 4.1%
Italy 5.0% 1.6%
Taiwan 4.9% 4.3%
Regional Allocation
  • Europe – other 59.0%
  • Emerging Asia 24.4%
  • Pacific 7.5%
  • Emerging Europe, Middle East, Africa 2.5%
  • Emerging Latin America 2.1%
  • North America 1.4%

Commentary (As of April 30, 2021)


  • The worldwide drive to stimulate economic activity and vaccinate populations added demand to equity buying in April with most major developed market indices closing at 10-year-highs. Emerging markets equities also delivered positive returns during the month.
  • With consumers beginning to unleash pent up demand, the effects of fiscal and monetary stimulus continuing to permeate the global economy, and with supply constraints intensifying, inflationary pressures are starting to emerge.
  • In asset markets awash in monetary liquidity, the price discounting mechanism has accelerated, and stock prices have reflected future good news quickly, sometimes long before earnings uplift occurs. At present, we are more interested in developed market defensive companies that have lagged the cyclical rally.

Portfolio attribution

The Causeway International Opportunities Fund (“Fund”) underperformed the Index during the month, due primarily to stock selection. Fund holdings in banks, pharmaceuticals & biotechnology, semiconductors & semi equipment, energy, and technology hardware & equipment industry groups detracted from performance relative to the Index. Holdings in capital goods, telecommunication services, and commercial & professional services industry groups, as well as an underweight position in the automobiles & components and food & staples retailing industry groups, offset a portion of the underperformance. The largest detractor from absolute performance was Takeda Pharmaceutical Co., Ltd. (Japan). Additional top detractors included integrated oil & gas company, Total (France), travel & tourism information technology provider, Amadeus IT Group SA (Spain), banking & financial services companies, Barclays Plc (United Kingdom) and bank, China Construction Bank Corp. (China). The top contributor to return was business software & services provider, SAP SE (Germany). Additional top contributors included semiconductor engineer, MediaTek, Inc. (Taiwan), pharmaceutical giant, Sanofi (France), paints & coatings producer, Akzo Nobel (Netherlands), and beverage producer, Pernod Ricard SA (France).

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 neutral. 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 negative, while our macroeconomic factor is neutral for emerging markets. Lastly, our risk aversion factor is negative in our model.

Investment outlook

Since November 2020, global equity markets have generally favored companies poised to benefit from economic reopening and recovery. As we have noted in prior reviews, cyclical sectors usually outperform market indices in periods following recessions and market lows, as earnings momentum shifts in favor of economically sensitive businesses. This cycle has fit that pattern, with extremely rapid and large increases in the share prices of cyclical companies. Within the MSCI ACWI ex-US Index, the industrials, materials, energy, consumer discretionary, and financials sectors on average delivered 91% absolute returns from the Covid-19 crisis market trough in March 2020 through April 2021, outperforming the other sectors in the Index by 30%. Given the rapid upward re-rating, we have responded by reducing the fundamental portion of the portfolio’s cyclical exposure and reinvesting sale proceeds into, in our view, high quality, less economically sensitive businesses with less earnings volatility. For example, we reduced significantly what had once been one of the largest-weighted holdings in client fundamental portfolios, an auto manufacturer that finally was recognized for its electric vehicle transition. After a period of strong performance, based on our analysis, its risk-adjusted expected return ranked less competitively relative to other stocks. In asset markets awash in monetary liquidity, the price discounting mechanism has accelerated, and stock prices have reflected future good news quickly, sometimes long before earnings uplift occurs. At present, we are more interested in developed market defensive companies that have lagged the cyclical rally, including innovative pharmaceutical companies trading near all-time-low relative valuations, and forward-thinking utilities repositioning their companies for the renewable energy transition. From a fundamental perspective, we have also been adding to defensive information technology companies that generate recurring revenue from critical infrastructure software. The portfolio remains cyclically positioned, but we believe its lowered risk profile, diversified across risk factors, should be resilient in a broader range of market outcomes. Generally, our developed market portfolio companies are engaged in operational restructuring. We believe we have identified companies that used the Covid-19 crisis to cut costs and boost efficiency and should emerge from the pandemic with improved earnings power and a stronger competitive positioning. We expect these companies to re-rate upward as the market recognizes their progress and look forward to increasing levels of capital returned to shareholders with dividends and share buybacks.

Within the emerging markets portion of the portfolio, earnings growth upgrades have generally been strongest in cyclical these sectors too,particularly materials, energy, information technology, according to analyst estimates. Growth upgrades for these sectors reflect analysts’ optimism that economies continue to reopen and economic activity will accelerate. Earnings growth upgrades have been weakest for stocks in the consumer discretionary, communication services, and real estate sectors. After outperforming during the first quarter, the MSCI EM Value Index underperformed the MSCI EM Growth Index in April. Flattening yield curves and the pause in the reopening trade weighed on value stocks during the month. However, we believe the global vaccine rollout should progress and most economies should continue to reopen, putting upward pressure on interest rates. This would provide a positive backdrop for value stocks, which trade at a sizable discount to growth stocks.

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
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).


Fund information: