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*
$14.18, +0.16
December 31, 2009
Minimum Investment
Sales Charge
Net Expense Ratio
Gross Expense Ratio
*As of December 03, 2020
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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
Head of Quantitative Research
Quantitative Portfolio Manager
Quantitative Portfolio Manager
Quantitative Portfolio Manager
Fundamental Portfolio Manager


QTD YTD 1 year3 years5 years10 years Since inception
Fund 17.2%0.0%4.4%0.4%5.0%4.9%5.1%
MSCI ACWI ex US 11.0%5.4%10.0%4.3%7.9%5.6%5.5%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 17.2%0.0%4.4%0.4%5.0%4.9%5.1%
MSCI ACWI ex US 11.0%5.4%10.0%4.3%7.9%5.6%5.5%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 2.8%-14.7%-4.8%-3.8%2.6%3.2%3.6%
MSCI ACWI ex US 6.4%-5.1%3.4%1.6%6.7%4.5%4.5%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 2.8%-14.7%-4.8%-3.8%2.6%3.2%3.6%
MSCI ACWI ex US 6.4%-5.1%3.4%1.6%6.7%4.5%4.5%
Fund 21.4%-18.6%29.4%1.7%-6.3%-4.0%17.5%24.4%-12.8%15.1%
MSCI ACWI ex US 22.1%-13.8%27.8%5.0%-5.3%-3.4%15.8%17.4%-13.3%11.6%

Portfolio (as of October 31, 2020)

Benchmark: MSCI ACWI ex US
Asset Allocation
Stocks 98.1%
Cash 1.9%
Fund Characteristics
Fund Benchmark
No. of holdings 172 2376
Weighted avg. market cap (US $MM) $85,542 $80,682
FY2 price/earnings 10.4 14.2
Price/book value 1.1 1.6
Net assets $13,908,620 -
Security Country Percent
Volkswagen AG Germany 3.1
Alibaba Group Holding - ADR China 3.0
Tencent Holdings Ltd. China 2.7
BASF SE Germany 2.6
UniCredit S.p.A. Italy 2.6
ING Groep NV Netherlands 2.4
Taiwan Semiconductor Manufacturing Co., Ltd. - ADR Taiwan 2.2
Takeda Pharmaceutical Co., Ltd. Japan 2.0
FANUC Corp. Japan 2.0
Novartis 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 Fund Benchmark
Financials 22.1% 17.1%
Industrials 17.0% 11.6%
Information Technology 13.1% 11.7%
Consumer Discretionary 12.7% 14.4%
Health Care 8.6% 10.0%
Materials 7.5% 7.8%
Consumer Staples 6.5% 9.5%
Communication Services 4.6% 7.9%
Energy 3.5% 4.0%
Utilities 1.8% 3.4%
Real Estate 0.7% 2.7%
UNKNOWN 0.0% 0.0%
Country Fund Benchmark
China 13.7% 13.4%
Germany 12.7% 5.6%
France 11.9% 6.6%
United Kingdom 10.3% 8.2%
Switzerland 7.8% 6.4%
Japan 7.4% 16.6%
Taiwan 5.2% 3.9%
South Korea 5.0% 3.7%
Spain 4.5% 1.4%
Netherlands 4.4% 2.8%
Regional Allocation
  • Europe – other 57.7%
  • Emerging Asia 28.0%
  • Pacific 7.4%
  • Emerging Europe, Middle East, Africa 2.1%
  • Emerging Latin America 1.9%
  • North America 0.9%

Commentary (As of October 31, 2020)


  • Optimism surrounding additional fiscal stimulus packages in the US and Europe bolstered equity markets in the first half of October; however, renewed coronavirus lockdowns in several European countries and a surge in cases in the US weakened investor sentiment and developed markets finished the month in negative territory. Buoyed by Chinese stocks, emerging markets (“EM”) equities outperformed most developed markets.
  • In the UK, the deadline to negotiate a Brexit deal marches closer without a resolution. Ultimately, we believe that a deal will be reached to prevent a further dampening of the UK economy in the face of the pandemic-induced recession.
  • We believe that undervaluation alone is never enough, so we seek businesses that have used this crisis to reduce their cost bases by unprecedented levels, which should reinvigorate earnings as demand improves.

Portfolio attribution

Causeway International Opportunities Fund (“Fund”) underperformed the Index during the month, due primarily to stock selection. Fund holdings in the pharmaceuticals & biotechnology, insurance, banks, software & services, and automobiles & components industry groups detracted from performance relative to the Index. Holdings in the capital goods, technology hardware & equipment, and media & entertainment industry groups, as well as an overweight position in the semiconductors & semi equipment industry group and an underweight position in the household & personal products industry group, offset some of the underperformance versus the Index. The largest detractor from performance was business software & services provider, SAP SE (Germany). Additional notable detractors included Takeda Pharmaceutical Co., Ltd. (Japan), diversified chemicals manufacturer, BASF SE (Germany), banking & financial services company, UniCredit S.p.A. (Italy), and insurer, AXA SA (France). The top contributor to return was jet engine manufacturer, Rolls-Royce Holdings Plc (United Kingdom). Other notable contributors included online services company, Tencent Holdings Ltd. (China), robotics manufacturer, FANUC Corp.(Japan), banking & financial services company, Barclays Plc (United Kingdom), and electronic components manufacturer, Murata Manufacturing Co., Ltd. (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 overweight. We identify five primary factors as most indicative of the ideal allocation target: valuation, quality, earnings growth, macroeconomic, and risk aversion. Valuation is currently negative 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 positive, while our macroeconomic factor is neutral for emerging markets. Lastly, our risk aversion factor is negative in our model.

Investment outlook

We currently expect an end to the extremely negative economic effects wrought on the global economy by the pandemic in 2021, facilitated by widely available and efficacious testing, therapies, and potential vaccines. We used October’s weakness in COVID-sensitive stocks to add to positions that we believe have some of the highest expected returns in the portfolio. With no relief from the pandemic thus far in early November, market participants have sold several developed market stocks that we consider having significant potential upside from current prices. Some of our favorites include well-managed travel and aerospace equipment-related businesses, as well as those in travel software & services. In financials, our investment theses do not depend on rising nominal interest rates for our portfolio companies to perform well. For example, European and Japanese banks and insurance companies have contended with low-to-negative interest rates for the past several years, yet valuations are currently trading at three standard deviations below the post-2008 Global Financial Crisis mean. Several of these banks boast capital positions well in excess of regulatory requirements. As we ultimately exit the COVID-19 crisis, we expect these financials to rebound in profitability. That recovery, combined with financial strength, provides the potential for these stocks to re-rate upward. Our analysis indicates that these companies are well-positioned to return excess capital to shareholders. We believe that undervaluation alone is never enough, so we seek businesses that have used this crisis to reduce their cost bases by unprecedented levels, which should reinvigorate earnings as demand improves. Well-managed cyclical stocks trade at prices that imply permanent demand destruction, and the COVID-19 pandemic presents, in our view, a once-in-a-generation opportunity for disciplined value investors.

In the EM portion of the Fund, uncertainty surrounding the COVID-19 pandemic continued to weigh on EM value stocks in October. While our value factor delivered positive performance during the month, the MSCI Emerging Markets Value Index underperformed the MSCi Emerging Markets Growth Index. The MSCI EM Value Index is trading near record low valuations based on both price-to-earnings and price-to-book value ratios. We continue to emphasize value factors in our multi-factor investment process. We believe that EM value stocks are poised to rebound given the valuation discount, the anticipated resumption of global growth in 2021, and the likely reduction, ultimately, in uncertainty following the US election.

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
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).


Fund information: