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*
+18.49%
Nav*
$15.25, -0.01
Inception
December 31, 2009
Cusip
14949Q206
Benchmark
MSCI ACWI ex US
Minimum Investment
$5,000
Sales Charge
None
Net Expense Ratio
1.23%
Gross Expense Ratio
1.25%
*As of November 30, 2023
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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 -3.9%9.7%23.1%9.5%4.4%2.6%4.6%
MSCI ACWI ex US -4.1%1.5%12.7%3.5%4.0%3.0%4.1%
QTD YTD 1 year3 years5 years10 years Since inception
Fund -3.9%9.7%23.1%9.5%4.4%2.6%4.6%
MSCI ACWI ex US -4.1%1.5%12.7%3.5%4.0%3.0%4.1%
QTD YTD 1 year3 years5 years10 years Since inception
Fund -2.3%14.2%35.5%9.9%3.6%3.4%5.0%
MSCI ACWI ex US -3.7%5.8%21.0%4.2%3.1%3.8%4.5%
QTD YTD 1 year3 years5 years10 years Since inception
Fund -2.3%14.2%35.5%9.9%3.6%3.4%5.0%
MSCI ACWI ex US -3.7%5.8%21.0%4.2%3.1%3.8%4.5%
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 October 31, 2023)

Benchmark: MSCI ACWI ex US
Asset Allocation
Fund
Stocks 98.6%
Cash 1.4%
Fund Characteristics
Fund Benchmark
No. of holdings 240 2322
Weighted avg. market cap (US $MM) $60,532 $65,455
FY2 price/earnings 9.1 11.5
Price/book value 1.4 1.6
Net assets $20,037,816 -
TOP 10 HOLDINGS
Security Country Percent
Rolls-Royce Holdings Plc United Kingdom 4.2
UniCredit S.p.A. Italy 2.4
BP Plc United Kingdom 2.2
Enel SpA Italy 2.2
Roche Holding AG Switzerland 2.2
Reckitt Benckiser Group United Kingdom 2.1
Prudential Plc United Kingdom 2.0
Shell United Kingdom 2.0
Danone France 2.0
SAP SE Germany 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 19.3% 21.2%
Industrials 14.7% 12.8%
Consumer Staples 12.2% 8.5%
Health Care 12.2% 9.5%
Information Technology 9.9% 11.5%
Consumer Discretionary 9.4% 11.8%
Energy 6.3% 6.1%
Utilities 4.9% 3.2%
Materials 4.9% 7.8%
Communication Services 4.1% 5.5%
Real Estate 0.7% 2.0%
Equity Funds 0.0% 0.0%
TOP 10 COUNTRIES
Country Fund Benchmark
United Kingdom 27.0% 9.8%
France 10.1% 7.8%
China 8.2% 8.5%
Germany 7.5% 5.3%
India 5.3% 4.5%
Switzerland 5.2% 6.3%
Japan 4.9% 14.7%
Italy 4.7% 1.7%
Netherlands 4.5% 2.8%
Taiwan 4.3% 4.3%
Regional Allocation
  • Europe – other 64.5%
  • Emerging Asia 22.7%
  • Pacific 5.5%
  • North America 2.0%
  • Emerging Latin America 2.0%
  • Emerging Europe, Middle East, Africa 1.9%

Commentary (As of October 31, 2023)

Highlights

  • Global equities retreated for the 3rd consecutive month in October as investors digested the “higher for longer” interest rate backdrop.
  • Within EM, we continue to identify, in our view, attractive investment opportunities in small cap companies. Historically, our investment process has uncovered EM small cap stocks with alpha potential. The Fund’s allocation to EM small cap stocks was near the high end of the historical range at month-end.
  • As central banks continue their efforts to control inflation, this will likely lead to an environment of greater equity volatility than in the past 10-15 years. We believe that active management produces superior performance versus passive management in volatile markets. And a greater focus on valuation now that money is not free should favor managers employing a disciplined, value-oriented, long-term investment approach.

Portfolio Attribution

The Causeway International Opportunities Fund (“Fund”) on a net asset value basis, modestly outperformed the Index during the month. On a gross return basis, Fund holdings in the pharmaceuticals & biotechnology, capital goods, and technology hardware & equipment industry groups detracted from relative performance. Holdings in food beverage & tobacco, utilities, and consumer staples distribution & retail industry groups detracted from relative performance. The largest individual detractors from absolute returns were banking & financial services company, Barclays Plc (United Kingdom), rolling stock, signaling & services provider for the rail industry, Alstom SA (France), and pharmaceutical giant, Sanofi (France). The greatest individual contributors to absolute returns were health food & beverage producer, Danone (France), banking & financial services company, UniCredit S.p.A. (Italy), and electric, gas & renewables power generation & distribution company, Enel SpA (Italy).

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 and risk aversion factors are positive while macroeconomic is a negative indicator for emerging markets.

Economic outlook

Excluding Australia, major Developed Market central banks, including the US Federal Reserve Bank, The Bank of England, The European Central Bank and The Bank of Japan, voted to leave rates unchanged at their most recent meetings. The global manufacturing output PMI slipped 0.9 points to 48.9 last month, a level consistent with a 0.5% annual rate contraction in factory output. The standout positive in the October PMIs was the US, with a rise in both the output (+0.5 points) and new orders (+1.4 points) indexes. However, the Euro area PMI remains stuck at a recessionary level.

In China, the largest country within the EM index, authorities announced the approval of 1 trillion yuan in additional Treasury bonds in 2023. The issuance equals approximately 0.8% of China’s gross domestic product and the funds will be used to rebuild areas impacted by recent floods and to improve urban infrastructure. In addition to accommodative monetary policy and measures aimed at supporting the ailing property market, this is the latest action designed to stimulate the economy. In China, we are identifying compelling investment opportunities in the interactive media and consumer discretionary industries.

Investment Outlook

The era of cheap money is behind us, and at a minimum we are entering uncharted territory of public sector deficits and rising debt to GDP. We are careful to avoid making investment decisions based on the interest rate regime of the past 15-20 years. We expect an era of higher long-term interest rates, even if global economic activity falters. Large budget deficits and overall public sector debt levels, the capital demands required to fund the transition to a low carbon global economy, along with the costs of ongoing armed conflict and aging demographics in the developed countries plus China, suggest that structurally higher long term interest rates will be required to attract capital.

After appearing less attractive for much of the year, earnings growth upgrades for EM equities are becoming more attractive relative to those in ex-US developed markets. Within EM, the energy sector is experiencing the most net upgrades, buoyed by rising oil prices. On the negative side, materials stocks are experiencing the most net downgrades due to lackluster demand for most commodities. Within EM, we continue to identify, in our view, attractive investment opportunities in small cap companies. Historically, our investment process has uncovered EM small cap stocks with alpha potential. The Fund’s allocation to EM small cap stocks was near the high end of the historical range at month-end.

As central banks continue their efforts to control inflation, this will likely lead to an environment of greater equity volatility than in the past 10-15 years. We believe that active management produces superior performance versus passive management in volatile markets. And a greater focus on valuation now that money is not free should favor managers employing a disciplined, value-oriented, long-term investment approach.

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: