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*
+8.94%
Nav*
$14.02, +0.02
Inception
December 31, 2009
Cusip
14949Q206
Benchmark
MSCI ACWI ex US
Minimum Investment
$5,000
Sales Charge
None
Net Expense Ratio
1.20%
Gross Expense Ratio
1.24%
*As of January 17, 2023
Download Profile Sheet Download Prospectus
Contact Us

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 18.7%-11.3%-11.3%-0.2%-0.4%3.1%4.2%
MSCI ACWI ex US 14.4%-15.6%-15.6%0.5%1.4%4.3%4.3%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 18.7%-11.3%-11.3%-0.2%-0.4%3.1%4.2%
MSCI ACWI ex US 14.4%-15.6%-15.6%0.5%1.4%4.3%4.3%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 18.7%-11.3%-11.3%-0.2%-0.4%3.1%4.2%
MSCI ACWI ex US 14.4%-15.6%-15.6%0.5%1.4%4.3%4.3%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 18.7%-11.3%-11.3%-0.2%-0.4%3.1%4.2%
MSCI ACWI ex US 14.4%-15.6%-15.6%0.5%1.4%4.3%4.3%
2022202120202019201820172016201520142013201220112010
Fund -11.3%6.3%5.2%21.4%-18.6%29.4%1.7%-6.3%-4.0%17.5%24.4%-12.8%15.1%
MSCI ACWI ex US -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
2022202120202019201820172016201520142013201220112010
-11.3%6.3%5.2%21.4%-18.6%29.4%1.7%-6.3%-4.0%17.5%24.4%-12.8%15.1%
-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 December 31, 2022)

Benchmark: MSCI ACWI ex US
Asset Allocation
Fund
Stocks 99.3%
Cash 0.7%
Fund Characteristics
Fund Benchmark
No. of holdings 214 2261
Weighted avg. market cap (US $MM) $56,815 $62,972
FY2 price/earnings 9.5 11.6
Price/book value 1.4 1.6
Net assets $18,307,234 -
TOP 10 HOLDINGS
Security Country Percent
Rolls-Royce Holdings Plc United Kingdom 3.2
Prudential Plc United Kingdom 3.0
UniCredit S.p.A. Italy 2.7
Enel SpA Italy 2.3
Reckitt Benckiser Group United Kingdom 2.3
FANUC Corp. Japan 2.2
SAP SE Germany 2.2
Amadeus IT Group SA Spain 2.0
Danone France 2.0
Roche Holding AG Switzerland 1.9

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 19.5% 21.0%
Industrials 16.4% 12.3%
Health Care 12.9% 9.8%
Consumer Staples 11.0% 8.9%
Information Technology 10.6% 10.8%
Consumer Discretionary 9.2% 11.4%
Materials 7.1% 8.4%
Utilities 5.0% 3.4%
Energy 4.3% 6.0%
Communication Services 3.2% 5.9%
Real Estate 0.1% 2.3%
TOP 10 COUNTRIES
Country Fund Benchmark
United Kingdom 21.3% 9.8%
France 13.0% 7.6%
China 9.6% 9.2%
Japan 6.9% 14.0%
Germany 6.1% 5.2%
Spain 5.5% 1.5%
Italy 5.0% 1.5%
Switzerland 5.0% 6.5%
South Korea 4.1% 3.2%
Netherlands 4.1% 2.7%
Regional Allocation
  • Europe – other 63.5%
  • Emerging Asia 22.4%
  • Pacific 6.9%
  • Emerging Europe, Middle East, Africa 2.6%
  • North America 2.1%
  • Emerging Latin America 1.8%

Commentary (As of December 31, 2022)

Highlights

  • Despite posting negative returns in December, international equity markets rose sharply in the fourth quarter, on easing inflation concerns and optimism for China’s continued reopening.
  • Currently, recession in major world economies is emerging as a top concern for the coming year. Inflationary pressures should abate in the next few quarters, responding to the delayed impact of rising interest rates in most major economies globally. Re-opening of the Chinese economy should offset some of the global growth headwinds.
  • Lower valuations and relatively greater cyclicality in non-US equity markets should give non-US markets a chance to outperform the US. As economies slow, we expect to reduce the portfolio’s lower-ranked defensive stocks to add more, in our view, competitively well-placed cyclical companies with the potential to improve free cash flow and return more capital to shareholders. We remain focused on identifying management teams able to increase free cash flow, boost dividends and reward shareholders with cash or share buybacks.

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 banks, insurance, and energy industry groups contributed to relative performance. Holdings in the materials industry group, along with an overweight position in the transportation industry group and an underweight position in the media & entertainment industry group, offset some of the outperformance compared to the Index. The top individual contributors to return were life insurer, Prudential Plc (United Kingdom), as well as banks, Sumitomo Mitsui Financial Group, Inc. (Japan), and UniCredit S.p.A. (Italy). The top individual detractors from return were integrated circuit manufacturer, Taiwan Semiconductor Manufacturing Co., Ltd. (Taiwan), pharmaceuticals & chemicals company, Bayer AG (Germany), and business software & services provider, SAP SE (Germany).

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 also negative in our model.

Investment Outlook

Weak earnings and a drain of global liquidity – the opposite of the post-GFC bull market - do not bode well for equity markets in the next several months. We anticipate margins coming under pressures as higher costs flow through income statements. Nominal revenue growth may remain elevated, but real earnings growth in certain sectors appears vulnerable in our view. Lower valuations and relatively greater cyclicality in non-US equity markets should give non-US markets a chance to outperform the US. Attractively valued cyclical stocks may deliver relatively good returns in the second half of 2023 as global markets discount post-recession recovery. Further monetary tightening should favor stocks with reasonable valuations and abundant financial strength over those where earnings expectations and multiples still appear too high. Barring another oil supply shock, we believe energy is unlikely to lead the markets to the same extent as in 2022 as global oil & gas demand –besides China – wanes. The end of the era of free money combined with sharply rising short-term interest rates may expose weaknesses in the global financial system. We have reduced our bank weighting and added to economically defensive stocks, which should reduce portfolio risk at the margin. As economies slow, we expect to reduce the portfolio’s lower-ranked defensive stocks to add more, in our view, competitively well-placed cyclical companies with the potential to improve free cash flow and return more capital to shareholders. We remain focused on identifying management teams able to increase free cash flow, boost dividends and reward shareholders with cash or share buybacks.

Within the EM portion of the Fund, the sectors with the weakest net upgrades were information technology, materials, and utilities. Forecasts for the information technology sector reflect falling demand for semiconductor memory components. Weak expectations for materials are due in part to the impact of slowing global growth on commodity prices. The sectors with the strongest net upgrades were consumer discretionary, communication services, and energy. Both consumer discretionary and communication services are heavily exposed to China and have benefited from the government’s efforts to rekindle economic growth. While we incorporate growth expectations into our multi-factor EM investment process, we continue to emphasize valuation in our approach. With a balance of favorable valuation, growth, and price momentum characteristics relative to the Index, we believe the portfolio offers attractive risk-adjusted return potential looking forward.

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
2022 $0.3242 $0.0000 $0.0000
2021 $0.2058 $0.0000 $0.0000
2020 $0.1696 $0.0000 $0.0000
2019 $0.3193 $0.0000 $0.0327
2018 $0.2580 $0.0000 $0.0327
2017 $0.1923 $0.0000 $0.0000
2016 $0.4245 $0.0000 $0.0000
2015 $0.1357 $0.0107 $0.0199
2014 $0.0000 $0.0000 $0.4943
2013 $0.0958 $0.0001 $0.0739
2012 $0.2215 $0.0000 $0.0190
2011 $0.2487 $0.0000 $0.0303
2010 $0.1712 $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: