Seeking diversified exposure to international small cap companies

The Fund invests primarily in common stocks of companies with smaller market capitalizations located in developed and emerging markets outside the US. The Fund normally invests at least 80% of its total assets in equity securities of companies with smaller market capitalizations. Smaller market capitalization companies are companies with market capitalizations that do not exceed the highest market capitalization of a company within the Fund’s benchmark, the MSCI ACWI ex USA Small Cap Index (Gross), at the time of purchase. Some of these companies, although small by US standards, might be large companies in their local markets. The Fund may continue to hold securities of a portfolio company that appreciate above the smaller market capitalization threshold and thus may from time to time hold less than 80% of its total assets in equity securities of companies with smaller market capitalizations. The Fund may invest in a wide range of industries. The Fund’s investment objective is to seek long-term growth of capital.

YTD Return*
$12.86, -0.34
October 20, 2014
MSCI ACWI ex USA Small Cap
Minimum Investment
Sales Charge
Net Expense Ratio
Gross Expense Ratio
*As of November 26, 2021
Download Profile Sheet Download Prospectus
Contact Us

Strategy overview

The portfolio managers discuss our International Small Cap strategy.

Portfolio managers

Quantitative Portfolio Manager
Head of Quantitative Research
Quantitative Portfolio Manager
Quantitative Portfolio Manager
Quantitative Portfolio Manager


QTD YTD 1 year3 years5 years Since inception
Fund 1.2%17.4%35.7%9.4%8.6%7.7%
MSCI ACWI ex USA Small Cap 1.6%14.4%39.4%15.2%11.6%9.5%
QTD YTD 1 year3 years5 years Since inception
Fund 1.2%17.4%35.7%9.4%8.6%7.7%
MSCI ACWI ex USA Small Cap 1.6%14.4%39.4%15.2%11.6%9.5%
QTD YTD 1 year3 years5 years Since inception
Fund -5.3%16.0%30.6%5.6%7.6%
MSCI ACWI ex USA Small Cap 0.1%12.6%33.6%10.8%9.4%
QTD YTD 1 year3 years5 years Since inception
Fund -5.3%16.0%30.6%5.6%7.6%
MSCI ACWI ex USA Small Cap 0.1%12.6%33.6%10.8%9.4%
Fund 2.7%18.8%-21.1%34.7%3.3%4.7%
MSCI ACWI ex USA Small Cap 14.7%22.9%-17.9%32.1%4.3%3.0%
MSCI ACWI ex USA Small Cap

Portfolio (as of October 31, 2021)

Benchmark: MSCI ACWI ex USA Small Cap
Asset Allocation
Stocks 98.8%
Cash 1.2%
Fund Characteristics
Fund Benchmark
No. of holdings 142 4382
Weighted avg. market cap (US $MM) $1,980 $2,341
FY2 price/earnings 7.3 14.3
Price/book value 1.1 1.6
Net assets $44,672,394 -
Security Country Active weight*
SSAB Sweden 2.1%
Gigabyte Technology Co., Ltd. Taiwan 2.1%
ASR Nederland NV Netherlands 2.0%
EVRAZ Plc United Kingdom 1.9%
Canfor Canada 1.7%
BE Semiconductor Industries NV Netherlands 1.7%
Interfor Canada 1.7%
Royal Mail Plc United Kingdom 1.6%
SHIMAMURA Co., Ltd. Japan 1.6%
Power Finance Corp. Ltd. India 1.6%

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.

*Active defined as Fund weight minus MSCI ACWI ex USA Small Cap Index weight. Holdings are subject to change.

Sector Fund Benchmark
Industrials 19.0% 21.1%
Information Technology 16.4% 12.2%
Financials 14.9% 10.6%
Consumer Discretionary 14.1% 12.0%
Materials 12.2% 10.6%
Real Estate 5.9% 10.5%
Health Care 4.3% 7.3%
Energy 4.2% 2.8%
Communication Services 3.4% 4.2%
Consumer Staples 3.1% 5.5%
Utilities 1.3% 3.4%
Equity Funds 0.0% 0.0%
Country Fund Benchmark
Japan 19.5% 18.9%
Taiwan 8.6% 5.3%
South Korea 8.6% 4.2%
United Kingdom 8.5% 11.8%
Canada 7.9% 6.8%
Sweden 6.8% 5.4%
Netherlands 4.9% 1.7%
Australia 4.8% 6.4%
India 4.7% 4.9%
Hong Kong 3.4% 1.2%
Regional Allocation
  • Europe – other 31.4%
  • Pacific 28.9%
  • Emerging Asia 28.6%
  • North America 7.9%
  • Emerging Europe, Middle East, Africa 1.2%
  • Developed Middle East 1.1%
  • Emerging Latin America 0.9%

Commentary (As of October 31, 2021)


  • Global equities regained momentum in October as progress in vaccination campaigns appeared to have assuaged investor concerns over new mobility restrictions.
  • Progress on the health care front, coupled with robust private sector demand, translated to stronger economic data in October in many developed markets. Flash readings of the Composite Purchasing Managers’ Indexes in most developed countries indicated expansions in private sector activity during the month.
  • We believe that many of the portfolio companies in aviation, travel, leisure, and hospitality that we added to our clients’ portfolios in prior months should continue to outperform markets. With a turnaround in cash flows, many of these companies should be well positioned for a return to normalcy.

Portfolio attribution

The Causeway International Small Cap Fund (“Fund”) underperformed the Index during the month. To evaluate stocks in our investable universe, our multi-factor quantitative model employs four bottom-up factor categories – valuation, earnings growth, technical indicators, and competitive strength – and two top-down factor categories assessing macroeconomic and country aggregate characteristics. Our value factors were essentially flat in the month of October, though they are still the best -performing alpha factor group over the past twelve months. Earnings growth alpha factors were also flat last month, but they are the best-performing bottom-up factor group YTD in 2021. The strategy’s technical alpha factors produced positive returns in October. Our competitive strength factor category also delivered positive returns. These factors are flat for the year, but have a quality tilt to them, offering, in our view, good diversification to other bottom-up factors, particularly value. Our macroeconomic factors delivered positive returns in October as countries with superior top-down characteristics outperformed those exhibiting relatively weaker metrics. However, country aggregate factors generated negative returns. All factor group returns remain positive from inception of the Fund (10/20/14) to the end of October.

Investment outlook

Though we analyze many different stock selection factors in our alpha model, value factors receive the largest weight on average. As of October 31, the Small Cap Growth Index traded at a 21.7x forward price-to-earnings multiple compared to 12.0x for the Small Cap Value Index, an 81% premium. The Value Index has outperformed the Growth Index by only 2.1% in 2021 YTD, and we believe there is far more “catching up” to come as the latest Covid wave continues to subside.

We remain overweight Information technology, financials, and energy, sectors which we believe should continue to benefit from the global economic expansion that is underway. We are underweight the real estate, utilities, and health care sectors which might lag in a higher interest rate or pro-cyclical environment.

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 will be subject to 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
2020 $0.4107 $0.0000 $0.0000
2019 $0.4390 $0.0000 $0.0000
2018 $0.3165 $0.0000 $0.0000
2017 $0.3792 $0.2375 $0.4794
2016 $0.2901 $0.0000 $0.0000
2015 $0.2407 $0.0000 $0.0000

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: