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*
+11.40%
Nav*
$17.39, +0.16
Inception
December 31, 2009
Cusip
14949Q206
Benchmark
MSCI ACWI ex US
Minimum Investment
$5,000
Sales Charge
None
Gross Expense Ratio
1.27%
Net Expense Ratio
1.20%
*As of July 22, 2024
**Contractual fee waivers are in effect until 1/31/2025.

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 3.4%7.9%14.9%5.1%7.7%4.2%5.9%
MSCI ACWI ex US 1.2%6.0%12.2%1.0%6.1%4.3%5.3%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 3.4%7.9%14.9%5.1%7.7%4.2%5.9%
MSCI ACWI ex US 1.2%6.0%12.2%1.0%6.1%4.3%5.3%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 3.4%7.9%14.9%5.1%7.7%4.2%5.9%
MSCI ACWI ex US 1.2%6.0%12.2%1.0%6.1%4.3%5.3%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 3.4%7.9%14.9%5.1%7.7%4.2%5.9%
MSCI ACWI ex US 1.2%6.0%12.2%1.0%6.1%4.3%5.3%
20232022202120202019201820172016201520142013201220112010
Fund 24.4%-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 16.2%-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
20232022202120202019201820172016201520142013201220112010
24.4%-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%
16.2%-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 June 30, 2024)

Benchmark: MSCI ACWI ex US
Asset Allocation
Fund
Stocks 99.4%
Cash 0.6%
Fund Characteristics
Fund Benchmark
No. of holdings 240 2159
Weighted avg. market cap (US $MM) $79,707 $94,115
FY2 price/earnings 10.0 12.6
Price/book value 1.5 1.9
Net assets $23,152,617 -
TOP 10 HOLDINGS
Security Country Percent
Rolls-Royce Holdings Plc United Kingdom 3.7
Barclays PLC United Kingdom 2.6
Shell United Kingdom 2.4
Alstom SA France 2.4
Roche Holding AG Switzerland 2.3
BP Plc United Kingdom 2.3
Taiwan Semiconductor Manufacturing Co., Ltd. Taiwan 2.2
Kering SA France 2.1
Prudential Plc United Kingdom 1.9
Reckitt Benckiser Group United Kingdom 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 17.2% 21.7%
Industrials 16.6% 13.7%
Information Technology 15.3% 14.0%
Health Care 10.5% 9.5%
Consumer Staples 9.6% 7.2%
Consumer Discretionary 8.8% 11.1%
Energy 6.4% 5.5%
Materials 4.9% 7.1%
Communication Services 4.7% 5.3%
Utilities 4.2% 3.1%
Real Estate 1.1% 1.8%
TOP 10 COUNTRIES
Country Fund Benchmark
United Kingdom 26.3% 9.5%
France 12.0% 7.1%
Japan 7.7% 14.4%
China 7.6% 7.3%
Germany 7.0% 5.5%
India 6.1% 5.6%
Taiwan 6.0% 5.6%
South Korea 4.7% 3.5%
Netherlands 4.5% 3.4%
Switzerland 3.7% 6.2%
Regional Allocation
  • Europe – other 61.0%
  • Emerging Asia 25.0%
  • Pacific 8.8%
  • Emerging Europe, Middle East, Africa 1.9%
  • Emerging Latin America 1.4%
  • North America 1.2%
  • Developed Middle East 0.1%

Commentary (As of June 30, 2024)

Highlights

  • Global equities had mixed performance in June, with investor demand for AI-related stocks driving significant gains in technology-heavy markets, outpacing most others.
  • As markets concentrate enthusiasm for generative AI in a cohort of chipmakers, we believe client portfolios have exposure to lesser-known beneficiaries of this technology cycle, across building, delivery, and deployment phases in the developed markets portion of the Fund.
  • Within EM, the Indian general election concluded in June with the Narendra Modi-led Bharatiya Janata party (“BJP”) losing its standalone majority in the lower house. While this result initially disappointed the market, Indian stocks rebounded as the BJP indicated that it would remain committed to investing in infrastructure and instituting reforms. We remain confident in our India exposure due to valuation support—the portfolio’s Indian stocks currently trade at significant price-to-earnings discounts versus the MSCI India Index.

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 semiconductors & semi equipment, banks, and insurance industry groups detracted from relative performance. Holdings in the automobiles & components, technology hardware & equipment, and consumer durables & apparel industry groups contributed to relative performance. The largest individual detractors from absolute returns were rolling stock, signaling, & services provider for the rail industry, Alstom SA (France), paints & coatings producer, Akzo Nobel (Netherlands), and pharmaceutical & consumer healthcare company, GSK Plc (United Kingdom). The greatest individual contributors to absolute returns were semiconductor manufacturer, Taiwan Semiconductor Manufacturing Co., Ltd. (Taiwan), business software & services provider, SAP SE (Germany), and pharmaceuticals & biotechnology company, Roche Holding AG (Switzerland).

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, and our risk aversion factor are also neutral. Our earnings growth indicator is positive for emerging markets while our macroeconomic indicator is negative.

Quarterly Investment Outlook

Monetary tightening in many of the world's economies is slowing economic growth, albeit with long and variable lags. While central banks have largely tamed inflation, high absolute prices for goods and services are causing voter dissatisfaction in many countries. In the US, the much-anticipated reductions in interest rates have yet to materialize, and the prolonged period of elevated rates pose risks to leveraged sectors such as real estate. The European Central Bank is currently expected to cut rates further this year, but political uncertainties cloud the eurozone’s economic outlook. In China, property market restructuring and amplified trade sanctions are expected to encumber economic recovery.

Narrow, momentum-led markets and political risks are creating investment opportunities. As markets concentrate enthusiasm for generative AI in a cohort of chipmakers, we believe client portfolios have exposure to lesser-known beneficiaries of this technology cycle, across building, delivery, and deployment phases in the developed markets portion of the Fund. In Europe, we added to select financials as post-election sell-offs made valuations, in our view, more attractive. Fading bullishness for the Japanese market has also created potentially promising valuations. We also remain focused on long-term rewards from operational restructuring, aiming to invest in companies poised for earnings growth and shareholder returns ahead of market recognition.

Within EM, the Indian general election concluded in June with the Narendra Modi-led Bharatiya Janata party (“BJP”) losing its standalone majority in the lower house. However, the party retained a majority as part of the National Democratic Alliance. While this result initially disappointed the market, Indian stocks rebounded as the BJP indicated that it would remain committed to investing in infrastructure and instituting reforms. Moreover, Prime Minister Modi’s cabinet appointments were largely holdovers from his last cabinet, allaying concerns that the alliance partners were exerting significant influence over these appointments. We remain confident in our India exposure due to valuation support—the portfolio’s Indian stocks currently trade at significant price-to-earnings discounts versus the MSCI India Index. In South Africa, elections appear to be progressing in a business-friendly manner. The African National Congress formed a government of national unity with center-leaning parties. While we believe the new government is well-positioned to address the country’s economic challenges – low growth, fiscal deficits, and poor infrastructure – it remains to be seen if the leaders will be able to implement effective policies in these areas. We continue to monitor South Africa’s economic environment. Also in EM, growth upgrades appear attractive in Taiwan and South Korea. In contrast, the growth outlook for Mexican and Brazilian stocks has slumped. Economic growth rates in these countries have been falling and the US Federal Reserve’s hawkishness has prevented them from more aggressively lowering their domestic interest rates to spur growth.

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
2023 $0.3642 $0.0000 $0.0282
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: