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*
$11.49, +0.03
October 20, 2014
MSCI ACWI ex USA Small Cap
Minimum Investment
Sales Charge
Net Expense Ratio
Gross Expense Ratio
*As of August 05, 2022
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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 -16.9%-17.2%-17.8%3.4%2.2%4.9%
MSCI ACWI ex USA Small Cap -17.4%-22.7%-22.1%3.4%3.0%5.0%
QTD YTD 1 year3 years5 years Since inception
Fund -16.9%-17.2%-17.8%3.4%2.2%4.9%
MSCI ACWI ex USA Small Cap -17.4%-22.7%-22.1%3.4%3.0%5.0%
QTD YTD 1 year3 years5 years Since inception
Fund -16.9%-17.2%-17.8%3.4%2.2%4.9%
MSCI ACWI ex USA Small Cap -17.4%-22.7%-22.1%3.4%3.0%5.0%
QTD YTD 1 year3 years5 years Since inception
Fund -16.9%-17.2%-17.8%3.4%2.2%4.9%
MSCI ACWI ex USA Small Cap -17.4%-22.7%-22.1%3.4%3.0%5.0%
Fund 21.6%2.7%18.8%-21.1%34.7%3.3%4.7%
MSCI ACWI ex USA Small Cap 13.4%14.7%22.9%-17.9%32.1%4.3%3.0%
MSCI ACWI ex USA Small Cap

Portfolio (as of June 30, 2022)

Benchmark: MSCI ACWI ex USA Small Cap
Asset Allocation
Stocks 98.9%
Cash 1.1%
Fund Characteristics
Fund Benchmark
No. of holdings 125 4417
Weighted avg. market cap (US $MM) $2,013 $1,607
FY2 price/earnings 5.6 10.5
Price/book value 0.8 1.3
Net assets $43,581,497 -
Security Country Active weight*
Interfor Canada 1.9%
SHIMAMURA Co., Ltd. Japan 1.8%
SSAB Sweden 1.8%
Sojitz Corp. Japan 1.8%
ASR Nederland NV Netherlands 1.7%
ZIM Integrated Shipping Services Ltd. Israel 1.7%
Gigabyte Technology Co., Ltd. Taiwan 1.6%
Canfor Canada 1.6%
Electric Power Development Co., Ltd. Japan 1.6%
Radiant Opto-Electronics Corp. Taiwan 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 14.7% 19.6%
Information Technology 14.5% 11.1%
Materials 13.9% 11.4%
Financials 12.5% 10.9%
Consumer Discretionary 11.8% 11.4%
Energy 7.8% 3.9%
Real Estate 6.8% 10.7%
Utilities 5.5% 3.7%
Consumer Staples 5.2% 6.3%
Communication Services 3.1% 3.9%
Health Care 2.9% 7.0%
Country Fund Benchmark
Japan 20.2% 20.3%
Canada 11.8% 7.5%
Taiwan 9.6% 5.4%
South Korea 7.7% 3.7%
United Kingdom 7.0% 11.1%
Australia 6.7% 6.7%
India 5.2% 5.6%
Brazil 4.1% 1.6%
Germany 3.6% 3.1%
Netherlands 3.1% 1.3%
Regional Allocation
  • PACIFIC RIM 29.6%
  • OTHER EUROPE 11.6%
  • EURO 9.9%

Commentary (As of June 30, 2022)


  • Equity prices continued to decline in June as accelerated central bank tightening and recession fears weighed on the outlook for economic growth.
  • Exacerbated by Russia’s weaponization of energy and agricultural products, fuel and food costs are rising in most regions globally, placing upward pressure on wages. In the US, rampant inflation and a tight labor market are compelling the Federal Reserve (“Fed”) to move more aggressively to raise interest rates.
  • Though we analyze many different stock selection factors in our alpha model, value factors receive the largest weight on average.

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. Returns to our value factors were positive in June and the second quarter. However, the more cyclically exposed parts of value underperformed in June on heightened global recession fears. Nevertheless, value was the best-performing factor group in the first half of 2022 and over the last twelve months. The strategy’s earnings growth alpha factors posted flat returns in June, though performance was positive for the second quarter. Our technical factors delivered the highest returns in June and the second quarter. Our competitive strength factor category also delivered positive returns for the month and the quarter. Our macroeconomic and country aggregate factors delivered slightly negative returns in June as countries exhibiting superior metrics underperformed those with relatively weaker macroeconomic characteristics. For the quarter, returns to our two top-down factor groups were largely flat. All factor group returns remain positive from inception of the Fund (10/20/14) to the end of June.

Investment outlook

The sheer breadth and inefficiency of the International Small Cap (ISC) universe create the opportunity to build a portfolio without the typical tradeoffs in stock characteristics. We believe Causeway’s ISC strategy, harnessing multiple sources of alpha, has achieved an attractive combination of portfolio characteristics. Valuation matters, even in small caps, amidst global economic fears and rising interest rates. To learn more about our unique approach to International Small Cap portfolio construction, please read our recent publication “No Tradeoffs Required” available at

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
2021 $0.4823 $0.0000 $0.0000
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: