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*
$11.94, -0.05
December 31, 2009
Minimum Investment
Sales Charge
Total Expense Ratio
*As of August 20, 2019

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
Fundamental Portfolio Manager
Head of Quantitative Research
Quantitative Portfolio Manager
Quantitative Portfolio Manager
Quantitative Portfolio Manager
Fundamental Portfolio Manager


QTDYTD1 year3 years5 yearsSince inception
MSCI ACWI ex US-1.2%12.7%-1.8%7.7%2.6%4.8%
QTDYTD1 year3 years5 yearsSince inception
MSCI ACWI ex US-1.2%12.7%-1.8%7.7%2.6%4.8%
QTDYTD1 year3 years5 yearsSince inception
MSCI ACWI ex US3.2%14.0%1.8%9.9%2.6%5.0%
QTDYTD1 year3 years5 yearsSince inception
MSCI ACWI ex US3.2%14.0%1.8%9.9%2.6%5.0%
MSCI ACWI ex US-13.8%27.8%5.0%-5.3%-3.4%15.8%17.4%-13.3%11.6%

Portfolio (as of July 31, 2019)

Benchmark: MSCI ACWI ex US
Asset Allocation
Fund Characteristics
No. of holdings 201 2204
Weighted avg. market cap (US $MM)$52,959$52,538
FY2 price/earnings9.812.6
Price/book value1.21.6
Net assets$9,645,444-
Security Country Percent
Volkswagen AGGermany3.7
BASF SEGermany2.9
Takeda Pharmaceutical Co., Ltd.Japan2.9
Prudential PlcUnited Kingdom2.6
ABB Ltd.Switzerland2.6
KDDI Corp.Japan2.5
UniCredit S.p.A.Italy2.5
Linde PlcGermany2.5
AstraZeneca PlcUnited Kingdom2.5
British American Tobacco plcUnited Kingdom2.4

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
Health Care9.5%8.4%
Consumer Discretionary8.1%11.4%
Information Technology7.8%8.7%
Communication Services6.5%7.0%
Consumer Staples5.6%10.0%
Real Estate0.7%3.2%
Country Fund Benchmark
United Kingdom26.5%11.1%
South Korea3.2%3.1%
Regional Allocation
  • Europe – other 57.9%
  • Emerging Asia 17.7%
  • Pacific 12.0%
  • North America 4.2%
  • Emerging Latin America 2.9%
  • Emerging Europe, Middle East, Africa 2.7%

Commentary (As of July 31, 2019)


  • Following strong performance in the first half of the year, equity markets delivered more muted returns in July. On the back of central banks signaling stimulus, value stock valuations continued to contract while growth stock valuations rose.

Portfolio attribution

Causeway International Opportunities Fund ("Fund") underperformed the Index during the month, due primarily to currency allocation (a byproduct of our bottom-up stock selection process). Fund holdings in the software & services, energy, materials, and banks industry groups, along with an underweight position in the semiconductors & semi equipment industry group, detracted from relative performance. Holdings in the capital goods, telecommunication services, technology hardware & equipment, and automobiles & components industry groups, as well as an underweight position in the household & personal products industry group, contributed to relative performance. The largest detractor was enterprise infrastructure software company, Micro Focus International Plc (United Kingdom). Additional notable detractors included diversified chemicals manufacturer, BASF SE (Germany), business software & services provider, SAP SE (Germany), Takeda Pharmaceutical Co., Ltd. (Japan), and oil & natural gas producer, Encana (Canada). The top contributor to return was aerospace & defense manufacturer, Cobham Plc (United Kingdom). Other notable contributors included telecommunication services provider, Vodafone Group (United Kingdom), pharmaceutical company, AstraZeneca Plc (United Kingdom), property & casualty insurer, Sompo Holdings, Inc. (Japan), and telecommunication services provider, KDDI Corp. (Japan).

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 neutral 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 negative in our model.

Investment outlook

On the back of central banks signaling stimulus, value stock valuations continued to contract in July while growth stock valuations rose. Central bank liquidity and momentum-driven investing trends continue to support long duration equities. We believe that additional accommodative central bank policies may already be priced into growth stocks. The de-rating of value has resulted in current market multiples for MSCI Value indices implying negative perpetuity earnings growth rates across geographies, even as the world economy is forecast to grow. We find such pessimism towards value stocks to be unwarranted, especially considering that the earnings of value stocks have outpaced those of growth stocks since the Global Financial Crisis. We believe that value stocks that have improved their earnings growth should re-rate as investors consider fundamentals rather than price momentum. In such a long period of falling interest rates, some companies with longer duration cash flows have become highly levered. If policy action cannot drive a meaningful improvement in economic data and downside risks materialize even marginally, companies exhibiting balance sheet strength should fare better than those with excess debt levels. Rather than trying to time monetary policy, we are remaining disciplined in our bottom-up valuation process. We seek to identify companies committed to improving free cash flow generation and rewarding shareholders via dividends and buybacks.

In the EM portion of the Fund, our price momentum factor continued its resurgence in July and it is our strongest performing factor YTD. Uncertainty in markets generally presents a challenging environment for a momentum approach. While we would be hard pressed to assert that global uncertainty has diminished, momentum appears to be rebounding after being oversold in late 2018 and early 2019. In contrast to momentum’s improved performance, our contextual weighting scheme continued to detract from performance in July. When calculating a stock’s expected alpha, we first classify it as value, growth, or momentum and then assign weights that we believe are appropriate for that classification. We are closely monitoring the performance of our contextual weighting scheme but we remain confident in this methodology.

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.


DividendsShort-term capital gainsLong-term capital gains

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: