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*
- +28.61%
- Nav*
- $17.35, +0.13
- Inception
- October 20, 2014
- Cusip
- 14949P802
- Benchmark
- MSCI ACWI ex USA Small Cap
- Minimum Investment
- $5,000
- Sales Charge
- None
- Gross Expense Ratio
- 1.44%
- Net Expense Ratio
- 1.35%
Portfolio managers
Joe Gubler, CFA
Mr. Gubler is a quantitative portfolio manager at Causeway. He joined the firm in 2005 and has been a portfolio manager since January 2014. In addition to managing quantitative portfolios and conducting alpha research, Mr. Gubler also leads the efforts to maintain and enhance Causeway’s proprietary risk models. He is also a member of the operating committee.
From 1999 to 2005, Mr. Gubler worked as a software engineer, with employers ranging from startups to established businesses such as Monster.com. From 1998 to 1999, Mr. Gubler worked as a staff scientist for News Corporation, conducting studies on the RF propagation of broadcast signals. While studying astrophysics at UC San Diego, Mr. Gubler worked as a graduate research assistant in the Jet Propulsion Laboratory's stellar interferometry group.
Mr. Gubler earned a BS, cum laude, in physics from UC Irvine, an MS in physics from UC San Diego, and an MBA from the UCLA Anderson Graduate School of Management. Mr. Gubler is a CFA charterholder.
Arjun Jayaraman, PhD, CFA
Quantitative Portfolio Manager
Dr. Jayaraman is a director, quantitative portfolio manager and head of the quantitative research at Causeway and has been with the firm since January 2006. Dr. Jayaraman’s responsibilities and research include stock selection, asset allocation, risk model development, and portfolio construction.
From 2004 to 2005, Dr. Jayaraman was a portfolio manager at PanAgora Asset Management. He was the lead portfolio manager on the non-U.S. large cap core equity portfolios and was the co-portfolio manager on the global large cap core equity portfolios. From 2000 to 2004, Dr. Jayaraman managed the same portfolios at Putnam Investments, in addition to working closely with the teams that managed Putnam's traditional non-U.S. strategies. From 1998 to 2000, Dr. Jayaraman worked as a quantitative analyst at Harborview Trading Associates.
Dr. Jayaraman earned a PhD from New York University at the Stern School of Business and a BA in economics from Columbia University. Dr. Jayaraman is a CFA charterholder.
MacDuff Kuhnert, CFA
Mr. Kuhnert is a director and a quantitative portfolio manager at Causeway and has been with the firm since its inception in June 2001. Mr. Kuhnert’s responsibilities and research include stock selection, asset allocation, risk model development, and portfolio construction.
From 1996 to 2001, Mr. Kuhnert worked for the international team of the Hotchkis & Wiley division of Merrill Lynch Investment Managers (HW-MLIM) as a quantitative research associate. During his tenure at HW-MLIM, Mr. Kuhnert created and developed advanced quantitative models used in the international value investment process. He also helped develop the team’s first equity risk model.
Mr. Kuhnert earned a BA in chemistry from Dartmouth College. He is a CFA charterholder, a member of the CFA Society of Los Angeles, and a member of the Chicago Quantitative Alliance.
Ryan Myers
Mr. Myers is a quantitative portfolio manager at Causeway. He joined the firm in June 2013 and has been a portfolio manager since January 2021. His responsibilities include alpha research, stock selection, and portfolio construction.
From 2010 to 2012, Mr. Myers served as chief investment officer of Iron Castle Asset Management, an investment partnership focused on mid-cap U.S. equities. From 2007 to 2008, Mr. Myers worked as an analyst at Canyon Partners, where he covered the cable, media, telecom and satellite sectors. From 2005 to 2007, Mr. Myers was an associate for Oaktree Capital Management in the distressed opportunities group. Mr. Myers began his professional career in 2003 as an investment banking analyst at Goldman Sachs in the technology, media and telecom group.
Mr. Myers earned a BA, magna cum laude, in economics from Harvard University, where he was elected to Phi Beta Kappa. He earned an MBA from the Stanford Graduate School of Business, where he was an Arjay Miller Scholar. Mr. Myers currently serves on the Board of Trustees of the Yosemite Conservancy, an organization dedicated to supporting projects and programs that preserve Yosemite National Park and enrich the visitor experience.
Performance
The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth less than their original cost and current performance may be lower than the performance quoted. Returns greater than one year are average annual total returns. Total returns assume reinvestment of dividends and capital gains distributions at net asset value when paid. All information is as of the date shown. Investment performance reflects fee waivers in effect. In the absence of such fee waivers, total return would be reduced. Gross expenses before investment adviser fee waivers are 1.21% for Institutional Class shares and 1.44% for Investor Class shares. The waivers are contractual and in effect until 1/31/2026. Investor Class shares charge up to a 0.25% annual shareholder service fee.
Portfolio (as of September 30, 2025)
Asset Allocation
| Table Header | Fund |
|---|---|
| Stocks | 98.2% |
| Cash | 1.8% |
Fund Characteristics
| Table Header | Fund | Benchmark |
|---|---|---|
| No. of holdings | 144 | 4137 |
| Weighted avg. market cap (US $MM) | $3,250 | $2,602 |
| FY2 price/earnings | 9.1 | 13.5 |
| Price/book value | 1.1 | 1.5 |
| Net assets | $79,671,276 | - |
TOP 10 ACTIVE HOLDINGS
| Security | Country | Active weight* |
|---|---|---|
| Celestica | Canada | 2.0% |
| JOYY, Inc. | China | 1.9% |
| VSTECS Holdings Ltd. | Hong Kong | 1.9% |
| Hanwha Corp. | South Korea | 1.9% |
| Unipol Gruppo SpA | Italy | 1.8% |
| PT Aneka Tambang Tbk | Indonesia | 1.8% |
| AGF Management | Canada | 1.7% |
| Finning International | Canada | 1.6% |
| TUI AG | United Kingdom | 1.6% |
| easyJet Plc | United Kingdom | 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 WEIGHTS
| Sector | Fund | Benchmark |
|---|---|---|
| Industrials | 22.4% | 20.4% |
| Information Technology | 16.0% | 11.1% |
| Financials | 11.7% | 12.0% |
| Consumer Discretionary | 10.4% | 11.6% |
| Materials | 8.5% | 12.6% |
| Communication Services | 7.8% | 4.0% |
| Utilities | 5.4% | 3.0% |
| Real Estate | 5.1% | 9.4% |
| Health Care | 4.7% | 6.9% |
| Equity Funds | 2.7% | 0.0% |
| Consumer Staples | 2.0% | 5.3% |
| Energy | 1.4% | 3.7% |
TOP 10 COUNTRIES
| Country | Fund | Benchmark |
|---|---|---|
| Japan | 21.3% | 23.0% |
| Canada | 9.8% | 7.0% |
| South Korea | 8.3% | 3.8% |
| United Kingdom | 8.2% | 8.3% |
| China | 8.1% | 3.8% |
| Taiwan | 7.5% | 5.8% |
| India | 4.7% | 7.3% |
| Australia | 4.2% | 6.8% |
| Italy | 3.3% | 2.1% |
| Germany | 2.7% | 2.6% |
Regional Allocation
- Emerging Asia 32.8%
- Pacific 29.3%
- Europe - Other 11.3%
- North America 9.8%
- Euro 9.2%
- Multi Region 2.7%
- Emerging Europe, Middle East, Africa 1.7%
- Emerging Latin America 0.9%
- Developed Middle East 0.4%
Distributions
| Table Header | Dividends | Short-term capital gains | Long-term capital gains |
|---|---|---|---|
| 2024 | $0.7051 | $0.2918 | $0.4332 |
| 2023 | $0.8169 | $0.0000 | $0.0192 |
| 2022 | $0.3141 | $0.0000 | $0.0000 |
| 2021 | $0.4608 | $0.0000 | $0.0000 |
| 2020 | $0.3870 | $0.0000 | $0.0000 |
| 2019 | $0.4079 | $0.0000 | $0.0000 |
| 2018 | $0.2903 | $0.0000 | $0.0000 |
| 2017 | $0.3588 | $0.2375 | $0.4794 |
| 2016 | $0.2619 | $0.0000 | $0.0000 |
| 2015 | $0.2095 | $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).
Documents
Fund information:
Forms:
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Commentary (As of September 30, 2025)
Highlights
Portfolio Attribution
The Causeway International Small Cap Fund (“Fund”), on a net asset value basis, underperformed the Index during the month. To evaluate stocks in our investible universe, our multi-factor quantitative model employs five bottom-up factor categories –valuation, sentiment, technical indicators, quality, and corporate events – and two top-down factor categories assessing macroeconomic and country aggregate characteristics. Alpha factor performance for September and the third quarter was mixed. Among our bottom-up factors, our sentiment and technical indicators were the only factor groups to deliver positive monthly and quarterly returns. The strategy’s technical factors were the best-performing bottom-up alpha factor group in September, the third quarter, and year-to-date. Valuation, quality, and corporate events factors all posted negative returns for the month and the quarter. Quality was particularly negative in the third quarter given the strong “risk-on” posture of the market. Among our top-down factors, our country aggregate factors posted positive monthly returns as countries exhibiting stronger metrics (such as Canada and China) outperformed those with relatively weaker characteristics (such as India and Sweden). However, returns to our macroeconomic factors were negative in September.
Investment Outlook
On balance, we continue to see positive developments on the corporate governance front in Korea, which is our largest overweight. In early July, the Korean parliament passed an amendment to the Korea Commercial Act, which included important changes including requiring company boards to now consider the interests of minority shareholders and mandating access to remote participation/electronic voting at shareholder meetings. Moreover, multiple bills are now under consideration to encourage companies to cancel treasury shares. Typically, share buybacks by a company are positive for all shareholders. However, Korean companies have historically exploited share buybacks by making them a tool to increase controlling shareholder control by reducing the number of shares owned by minority shareholders. Meanwhile, minority shareholders do not enjoy the earnings accretion benefit of a buyback since the purchased shares still exist in the company’s treasury. The proposed amendment would, once again, make share buybacks positive for minority shareholders.
International small caps (ACWI ex USA Small Cap Index) continue to trade at a rare 0.3x discount to their larger-cap (ACWI ex USA Index) peers on a forward P/E basis. In addition to the attractive relative valuation of the asset class overall, Causeway’s International Small Cap portfolio also trades at a substantial discount to the Index while simultaneously exhibiting more favorable growth, quality, momentum, and positive estimate revisions than the Index. We believe that this highly attractive combination of characteristics better insulates our portfolio from future volatility.
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.