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*
$15.23, -0.09
December 31, 2009
Minimum Investment
Sales Charge
Net Expense Ratio
Gross Expense Ratio
*As of September 17, 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 -0.3%9.0%29.0%6.9%8.3%6.4%6.2%
MSCI ACWI ex US 0.3%9.7%25.4%9.9%10.4%7.1%6.4%
QTD YTD 1 year3 years5 years10 years Since inception
Fund -0.3%9.0%29.0%6.9%8.3%6.4%6.2%
MSCI ACWI ex US 0.3%9.7%25.4%9.9%10.4%7.1%6.4%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 2.8%9.3%38.7%6.7%9.7%5.1%6.3%
MSCI ACWI ex US 5.6%9.4%36.3%9.9%11.6%5.9%6.5%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 2.8%9.3%38.7%6.7%9.7%5.1%6.3%
MSCI ACWI ex US 5.6%9.4%36.3%9.9%11.6%5.9%6.5%
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 August 31, 2021)

Benchmark: MSCI ACWI ex US
Asset Allocation
Stocks 97.2%
Cash 2.8%
Fund Characteristics
Fund Benchmark
No. of holdings 154 2341
Weighted avg. market cap (US $MM) $85,298 $77,604
FY2 price/earnings 11.2 14.0
Price/book value 1.6 2.0
Net assets $262,822,206 -
Security Country Percent
Rolls-Royce Holdings Plc United Kingdom 3.0
UniCredit S.p.A. Italy 2.7
Novartis AG Switzerland 2.6
Sanofi France 2.5
Takeda Pharmaceutical Co., Ltd. Japan 2.4
SAP SE Germany 2.4
Roche Holding AG Switzerland 2.2
Amadeus IT Group SA Spain 2.2
Taiwan Semiconductor Manufacturing Co., Ltd. - ADR Taiwan 2.1
Enel SpA Italy 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 21.7% 18.8%
Industrials 16.1% 12.2%
Information Technology 13.9% 13.5%
Health Care 12.9% 9.6%
Materials 7.2% 8.4%
Consumer Discretionary 6.6% 12.8%
Consumer Staples 6.5% 8.5%
Energy 5.4% 4.4%
Utilities 3.9% 3.1%
Communication Services 2.8% 6.3%
Real Estate 0.1% 2.5%
Country Fund Benchmark
United Kingdom 14.7% 9.0%
France 14.1% 7.2%
Germany 8.8% 5.9%
Switzerland 8.6% 6.3%
China 8.4% 10.1%
Japan 8.0% 14.5%
Spain 5.9% 1.5%
Taiwan 5.1% 4.4%
South Korea 4.9% 3.9%
Italy 4.7% 1.6%
Regional Allocation
  • Europe – other 60.6%
  • Emerging Asia 22.8%
  • Pacific 8.0%
  • Emerging Europe, Middle East, Africa 2.2%
  • Emerging Latin America 2.2%
  • North America 1.3%

Commentary (As of August 31, 2021)


  • Equities marched higher again in August, spurred by continuing ultra-loose monetary conditions, a likely multi-trillion-dollar US fiscal spending boost, and evidence of global economic recovery. Despite the increase in Covid cases linked to the spread of the Delta variant, investors appear optimistic that any impact will likely disrupt supply chains rather than spur the reinstatement of economically devastating lockdowns.
  • Strong global economic data in August confirmed a further normalization of activity in the wake of Covid lockdowns. In China, regulatory actions continued to dominate headlines. In our view, increased regulations in certain industries are long overdue. As long as they remain well-established, consistent, and transparent, our belief is that stronger standards in the country should ultimately benefit stakeholders.
  • We believe undervalued stocks will attract more buyers as the cost of money (aka interest rates) rise to more normal levels in most developed countries, reflecting economic recovery and fiscal stimulus. Companies generating solid cash flow and margins, with excellent competitive positioning, attract our attention in this environment.

Portfolio attribution

The Causeway International Opportunities Fund (“Fund”) underperformed the Index during the month, due primarily to stock selection. Fund holdings in the pharmaceuticals & biotechnology, software & services, semiconductors & semi equipment, transportation, and food beverage & tobacco industry groups detracted from performance relative to the Index. Holdings in the insurance, capital goods, banks, and energy industry groups, as well as an underweight position in the automobiles & components industry group, offset a portion of the underperformance. The largest detractor from absolute performance was internet commerce company, Alibaba Group Holding Ltd. (China). Additional top detractors included luxury goods manufacturer & retailer, Compagnie Financiere Richemont (Switzerland), travel & tourism information technology company, Amadeus IT Group SA (Spain), beverage producer, Pernod Ricard SA (France), and electronic equipment manufacturer, Samsung Electronics Co., Ltd. (South Korea). The top contributor to return was jet engine manufacturer, Rolls-Royce Holdings Plc (United Kingdom). Additional top contributors included life insurer, Prudential Plc (United Kingdom), electric utility provider, RWE AG (Germany), financial services company, Zurich Financial Services (Switzerland), and insurer, AXA 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 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 factor is negative, and our macroeconomic factor is negative for emerging markets. Lastly, our risk aversion factor is negative in our model.

Investment outlook

The rise of the Delta variant portends enduring uncertainty on the timing to reach full normalization. As a result, we are interested in economically cyclical developed market companies with, in our view, strong balance sheets focused on cutting costs. As it relates to develop market companies exposed to travel, leisure, and hospitality, in particular, we find meaningful differentiation amongst companies. Several are exhibiting high cash burn rates, while others are approaching breakeven. We are most interested in the latter, and we engage in rigorous fundamental research to scrutinize which firms may be underappreciated in the market yet poised for, based on our analysis, greater profitability when revenues recover. Furthermore, we believe the rapid pace of change in the economy—for example, from long-dated green initiatives or supplier shifts—could lead to structurally higher earnings in this economic cycle for certain industries. The premium for developed market growth stocks over value stocks narrowed in the wake of vaccine announcements in the fourth quarter of 2020, but overall, it remains significantly higher relative to history in a market awash with liquidity. We believe undervalued stocks will attract more buyers as the cost of money (aka interest rates) rise to more normal levels in most developed countries, reflecting economic recovery and fiscal stimulus. Companies generating solid cash flow and margins, with excellent competitive positioning, attract our attention in this environment.

In the EM portion of the Fund, we have seen that earnings upgrades in EM have lagged developed markets, which have been led by the US. Within EM, earnings upgrades have been strongest in Russia, South Korea, and Saudi Arabia. As commodity-linked economies, Russia and Saudi Arabia have benefitted from firm oil prices. South Korea has benefitted from positive earnings revisions within the information technology sector. Indonesia, Thailand, and China have experienced the weakest earnings revisions. Indonesia and Thailand continue to experience economic challenges related to Covid-19. Chinese stocks are facing a myriad of pressures including supply chain disruptions related to Covid-19, reduced stimulus, and regulatory pressures. While we incorporate bottom-up earnings growth factors into our assessment of each stock, we continue to emphasize valuation in our multi-factor quantitative investment process. Despite outperforming year-to-date, we believe the outlook for EM value stocks remains compelling as many companies in this cohort offer discounted valuations relative to history and attractive dividend yields.

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: