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*
+8.96%
Nav*
$15.45, +0.12
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
1.27%
*As of May 03, 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
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 6.3%6.3%61.6%4.1%8.4%4.7%6.0%
MSCI ACWI ex US 3.6%3.6%50.0%7.0%10.3%5.4%6.1%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 6.3%6.3%61.6%4.1%8.4%4.7%6.0%
MSCI ACWI ex US 3.6%3.6%50.0%7.0%10.3%5.4%6.1%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 6.3%6.3%61.6%4.1%8.4%4.7%6.0%
MSCI ACWI ex US 3.6%3.6%50.0%7.0%10.3%5.4%6.1%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 6.3%6.3%61.6%4.1%8.4%4.7%6.0%
MSCI ACWI ex US 3.6%3.6%50.0%7.0%10.3%5.4%6.1%
20202019201820172016201520142013201220112010
Fund 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 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
20202019201820172016201520142013201220112010
5.2%21.4%-18.6%29.4%1.7%-6.3%-4.0%17.5%24.4%-12.8%15.1%
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 March 31, 2021)

Benchmark: MSCI ACWI ex US
Asset Allocation
Fund
Stocks 98.2%
Cash 1.8%
Fund Characteristics
Fund Benchmark
No. of holdings 160 2356
Weighted avg. market cap (US $MM) $91,999 $80,211
FY2 price/earnings 12.4 14.7
Price/book value 1.7 2.0
Net assets $16,687,115 -
TOP 10 HOLDINGS
Security Country Percent
Rolls-Royce Holdings Plc United Kingdom 2.6
Novartis AG Switzerland 2.5
UniCredit S.p.A. Italy 2.4
Tencent Holdings Ltd. China 2.4
Taiwan Semiconductor Manufacturing Co., Ltd. - ADR Taiwan 2.3
Sanofi France 2.3
Total France 2.2
BASF SE Germany 2.2
Takeda Pharmaceutical Co., Ltd. Japan 2.2
Amadeus IT Group SA Spain 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 WEIGHTS
Sector Fund Benchmark
Financials 20.6% 18.9%
Industrials 16.6% 11.7%
Information Technology 14.9% 12.8%
Health Care 10.4% 8.9%
Consumer Discretionary 8.2% 13.7%
Consumer Staples 7.5% 8.4%
Materials 7.2% 8.2%
Energy 5.3% 4.5%
Communication Services 3.8% 7.1%
Utilities 3.2% 3.2%
Real Estate 0.5% 2.6%
TOP 10 COUNTRIES
Country Fund Benchmark
France 12.9% 7.0%
United Kingdom 12.8% 8.9%
China 11.4% 11.7%
Germany 9.9% 5.9%
Switzerland 8.6% 5.7%
Japan 7.3% 15.5%
Spain 5.8% 1.5%
South Korea 5.6% 4.1%
Taiwan 5.4% 4.3%
Italy 4.2% 1.6%
Regional Allocation
  • Europe – other 58.5%
  • Emerging Asia 26.7%
  • Pacific 7.3%
  • Emerging Europe, Middle East, Africa 2.3%
  • Emerging Latin America 2.0%
  • North America 1.4%

Commentary (As of March 31, 2021)

Highlights

  • Equity markets continued to ascend in March amid a steady progression in vaccination rollouts, historically high levels of fiscal and monetary accommodation, and renewed optimism in the outlook for global growth. Emerging markets (“EM”) trailed developed market peers during the month.
  • The rapid reopening of economies and consumers’ pent up demand could lead to a surge in spending, thereby adding to inflation pressures. However, we believe the long-term deflationary forces of demographics and technological advancement (such as digitization and automation) remain in place.
  • Consistent with prior market recoveries, stocks in economically defensive industries lag the overall markets. Several of these low beta stocks have risen to the top half of our risk-adjusted return ranking, making them potentially attractive portfolio candidates.

Portfolio attribution

Equity markets continued to ascend in March amid a steady progression in vaccination rollouts, historically high levels of fiscal and monetary accommodation, and renewed optimism in the outlook for global growth. Emerging markets (“EM”) trailed developed market peers during the month. The top performing markets in our investable universe were Saudi Arabia, Ireland, Chile, Mexico, and Norway. The worst performing markets were Turkey, Peru, Egypt, China, and Indonesia. The best performing sectors in the MSCI ACWI ex US Index (“Index”) were utilities, consumer staples, and industrials. The worst performing sectors were communication services, information technology, and consumer discretionary. Every major currency except the Canadian dollar depreciated versus the US dollar during the period, thus diminishing overall returns on overseas assets for US dollar-based investors.

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 neutral 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 negative, while our macroeconomic factor is positive for emerging markets. Lastly, our risk aversion factor is negative in our model.

Investment outlook

With vaccination rates accelerating, investors turned their attention to undervalued developed market stocks that were sharply sold off when the pandemic accelerated a year ago. Value stocks outpaced their growth peers during the first quarter, largely led by cyclical sectors such as industrials, materials, consumer discretionary, financials, and the more economically sensitive portion of technology. As high-quality cyclical stocks re-rate upward, we are using this opportunity to lower portfolio risk, measured as prospective volatility versus the benchmark. Consistent with prior market recoveries, stocks in economically defensive industries lag the overall markets. Several of these low beta stocks have risen to the top half of our risk-adjusted return ranking, making them potentially attractive portfolio candidates from a fundamental research perspective. A common theme for many of our developed market portfolio companies, whether cyclical or defensive, is operational restructuring. We believe companies with experienced management teams can prove to the market that they have used the crisis to reduce expenses and boost efficiency. In our view, this effort should enhance operating leverage and facilitate higher levels of profitability from these well-positioned companies. As free cash flow rises, we believe companies will return capital to shareholders in the form of dividends and share buybacks, providing a critical boost to total return.

Like their developed market counterparts, EM value stocks outperformed EM growth during the first quarter, buoyed by steepening global yield curves, the reopening of economies, and the Covid-19 vaccine rollout. Despite this outperformance, EM value stocks trade at a sizable discount to growth stocks. We emphasize value factors in our multi-factor investment process and we believe the value rebound is poised to continue as economic activity accelerates.

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
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: