Seeking value primarily in the non-US developed markets

The Fund invests primarily in common stocks of companies in developed countries outside the US. Normally, the Fund invests at least 80% of its total assets in stocks of companies in a number of foreign countries and invests the majority of its total assets in companies that pay dividends or repurchase their shares. The Fund may invest up to 15% of its total assets in companies in emerging (less developed) markets.

YTD Return*
+3.51%
Nav*
$16.81, -0.63
Inception
October 26, 2001
Cusip
14949P208
Benchmark
MSCI EAFE
Minimum Investment
$1,000,000
Sales Charge
None
Net Expense Ratio
0.85%
Gross Expense Ratio
0.88%
*As of November 26, 2021
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Strategy overview

The portfolio managers discuss our International Value strategy.

Portfolio managers

Fundamental Portfolio Manager
Fundamental Portfolio Manager
President
Head of Fundamental Research
Fundamental Portfolio Manager
Chief Executive Officer
Fundamental Portfolio Manager
Fundamental Portfolio Manager
Fundamental Portfolio Manager
Fundamental Portfolio Manager
Fundamental Portfolio Manager

Performance

QTD YTD 1 year3 years5 years10 years Since inception
Fund 1.3%9.4%46.1%8.5%7.9%6.8%7.2%
MSCI EAFE 2.5%11.5%34.8%12.1%10.3%7.9%6.9%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 1.3%9.4%46.1%8.5%7.9%6.8%7.2%
MSCI EAFE 2.5%11.5%34.8%12.1%10.3%7.9%6.9%
QTD YTD 1 year3 years5 years10 years Since inception
Fund -1.0%8.1%37.6%5.3%7.3%7.9%7.2%
MSCI EAFE -0.4%8.8%26.3%8.1%9.3%8.6%6.8%
QTD YTD 1 year3 years5 years10 years Since inception
Fund -1.0%8.1%37.6%5.3%7.3%7.9%7.2%
MSCI EAFE -0.4%8.8%26.3%8.1%9.3%8.6%6.8%
2020201920182017201620152014201320122011201020092008200720062005200420032002
Fund 5.4%20.1%-18.6%27.2%0.4%-3.0%-6.2%24.2%24.5%-10.6%12.3%32.3%-41.9%7.9%26.1%8.1%26.6%45.9%-10.9%
MSCI EAFE 8.3%22.7%-13.4%25.6%1.5%-0.4%-4.5%23.3%17.9%-11.7%8.2%32.5%-43.1%11.6%26.9%14.0%20.7%39.2%-15.7%
Fund
MSCI EAFE
2020201920182017201620152014201320122011201020092008200720062005200420032002
5.4%20.1%-18.6%27.2%0.4%-3.0%-6.2%24.2%24.5%-10.6%12.3%32.3%-41.9%7.9%26.1%8.1%26.6%45.9%-10.9%
8.3%22.7%-13.4%25.6%1.5%-0.4%-4.5%23.3%17.9%-11.7%8.2%32.5%-43.1%11.6%26.9%14.0%20.7%39.2%-15.7%

Portfolio (as of October 31, 2021)

Benchmark: MSCI EAFE
Asset Allocation
Fund
Stocks 97.4%
Cash 2.6%
Fund Characteristics
Fund Benchmark
No. of holdings 60 843
Weighted avg. market cap (US $MM) $73,196 $70,595
FY2 price/earnings 12.2 15.0
Price/book value 1.7 1.9
Net assets $5,680,933,225 -
TOP 10 HOLDINGS
Security Country Percent
Rolls-Royce Holdings Plc United Kingdom 4.4%
UniCredit S.p.A. Italy 3.2%
BP Plc United Kingdom 3.2%
TotalEnergies SE France 3.1%
Sanofi France 3.1%
FANUC Corp. Japan 3.1%
Amadeus IT Group SA Spain 3.1%
SAP SE Germany 3.0%
Novartis AG Switzerland 3.0%
Samsung Electronics Co., Ltd. South Korea 2.7%

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 20.7% 17.4%
Industrials 20.1% 15.6%
Health Care 14.3% 12.7%
Information Technology 11.6% 9.7%
Energy 7.6% 3.5%
Consumer Discretionary 7.5% 12.9%
Consumer Staples 6.6% 10.2%
Materials 4.5% 7.3%
Utilities 4.5% 3.4%
Real Estate 0.0% 2.8%
Communication Services 0.0% 4.5%
TOP 10 COUNTRIES
Country Fund Benchmark
United Kingdom 20.8% 14.6%
France 16.5% 11.5%
Germany 11.9% 9.0%
Switzerland 10.2% 9.9%
Japan 9.2% 22.9%
Spain 7.4% 2.4%
Italy 5.6% 2.5%
Netherlands 4.3% 5.0%
South Korea 3.6% 0.0%
Ireland 1.7% 0.7%
Regional Allocation
  • Europe – other 79.3%
  • Pacific 10.5%
  • North America 1.7%
  • Emerging Asia 4.9%
  • Emerging Latin America 1.0%

Commentary (As of October 31, 2021)

Highlights

  • Global equities regained momentum in October as progress in vaccination campaigns appeared to have assuaged investor concerns over new mobility restrictions.
  • Though the company management teams we speak with are generally reporting higher input costs, we believe many supply chain issues should be resolved by mid-2022. In our view, if labor retains bargaining power, this may raise unit labor costs. We believe that the level at which inflation expectations get anchored should have the biggest impact on whether inflation is transitory or more permanent.
  • For many of our portfolio companies, we believe the earnings growth outlook is underpinned by pent up demand, strong balance sheets, and structurally lower costs than those prior to the pandemic.

Portfolio attribution

The Causeway International Value Fund (“Fund”) underperformed the Index during the month, due primarily to stock selection. Fund holdings in the capital goods, pharmaceuticals & biotechnology, technology hardware & equipment, food beverage & tobacco, and banks industry groups detracted from performance relative to the Index. Holdings in the utilities, insurance, and consumer services industry groups, as well as an underweight position in the telecommunication services and health care equipment & services industry groups, offset a portion of the underperformance. The largest detractor from absolute performance was Takeda Pharmaceutical Co., Ltd. (Japan). Additional top detractors included robotics manufacturer, FANUC Corp. (Japan), electronic components manufacturer, Murata Manufacturing Co., Ltd. (Japan), jet engine manufacturer, Rolls-Royce Holdings Plc (United Kingdom) and diversified chemicals manufacturer, BASF SE (Germany). The top contributor to return was luxury goods manufacturer & retailers, Compagnie Financiere Richemont (Switzerland). Additional top contributors included electric, gas & renewables power generation & distribution company, Enel SpA (Italy), business software & services provider, SAP SE (Germany), electric utility provider, RWE AG (Germany), and financial services company, Zurich Insurance Group (Switzerland).

Investment outlook

Although equity markets reached new highs during the month, we continue to find plenty of opportunities in undervalued stocks. We aim to identify companies poised to deliver improved earnings that can potentially rerate upwards as investors recognize the positive transformation these management teams have delivered. As central banks embark on a monetary tightening cycle to combat inflationary pressures, we expect rising discount rates to act as a headwind for the high-flying valuations of long-duration growth stocks. This should translate into an attractive environment for fundamental, value-oriented research. We have positioned our clients’ portfolios to take advantage of what is, in our view, mispricing in stocks heavily exposed to Covid (e.g., travel, leisure, aerospace, and aviation), balanced with companies in more defensive and cash flow generative industries such as pharmaceutical and utilities. In recent months, we have also increased the portfolio’s energy exposure. Many European integrated oil companies have rationed capital expenditures, diverting investments away from exploration and production towards renewables, leading to a dearth of supply amid the current surging demand. We, therefore, expect oil and gas prices to remain elevated and potentially rise further this winter. For many of our portfolio companies, we believe the earnings growth outlook is underpinned by pent up demand, strong balance sheets, and structurally lower costs than those prior to the pandemic. With many companies resuming dividend payments and share buybacks, we believe income should bolster the total return profile of portfolio holdings in the remainder of 2021 and into 2022.

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. A company may reduce or eliminate its dividend, causing losses to a fund. 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 $0.2231 $0.0000 $0.0000
2019 $0.4953 $0.0497 $0.1781
2018 $0.3750 $0.0000 $0.1083
2017 $0.3165 $0.0000 $0.0000
2016 $0.2901 $0.0000 $0.0000
2015 $0.2750 $0.0000 $0.0000
2014 $0.3788 $0.0000 $0.0000
2013 $0.1645 $0.0000 $0.0000
2012 $0.2757 $0.0000 $0.0000
2011 $0.3813 $0.0000 $0.0000
2010 $0.1939 $0.0000 $0.0000
2009 $0.1875 $0.0000 $0.0000
2008 $0.5135 $0.0000 $0.4558
2007 $0.4536 $0.6606 $3.3443
2006 $0.2289 $0.0222 $0.8650
2005 $0.3718 $0.1962 $0.3833
2004 $0.2647 $0.1379 $0.3093
2003 $0.1813 $0.0037 $0.0550
2002 $0.1196 $0.0000 $0.0000
2001 $0.0000 $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: