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*
-17.22%
Nav*
$12.93, -0.06
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
0.90%
*As of September 22, 2020
Download Profile Sheet Download Prospectus
Contact Us

Strategy overview

The portfolio managers discuss our International Value strategy.

Portfolio managers

Chief Executive Officer
Fundamental Portfolio Manager
President
Head of Fundamental Research
Fundamental Portfolio Manager
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 6.1%-13.1%1.1%-2.4%1.1%4.9%6.1%
MSCI EAFE 7.6%-4.3%6.6%2.8%5.2%6.4%6.0%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 6.1%-13.1%1.1%-2.4%1.1%4.9%6.1%
MSCI EAFE 7.6%-4.3%6.6%2.8%5.2%6.4%6.0%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 20.5%-18.1%-10.8%-3.5%-1.1%4.9%5.8%
MSCI EAFE 15.1%-11.1%-4.7%1.3%2.5%6.2%5.7%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 20.5%-18.1%-10.8%-3.5%-1.1%4.9%5.8%
MSCI EAFE 15.1%-11.1%-4.7%1.3%2.5%6.2%5.7%
201920182017201620152014201320122011201020092008200720062005200420032002
Fund 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 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
201920182017201620152014201320122011201020092008200720062005200420032002
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%
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 August 31, 2020)

Benchmark: MSCI EAFE
Asset Allocation
Fund
Stocks 99.0%
Cash 1.0%
Fund Characteristics
Fund Benchmark
No. of holdings 64 900
Weighted avg. market cap (US $MM) $54,987 $55,805
FY2 price/earnings 12.3 15.7
Price/book value 1.1 1.6
Net assets $4,538,738,253 -
TOP 10 HOLDINGS
Security Country Percent
Volkswagen AG Germany 4.7%
UniCredit S.p.A. Italy 3.9%
BASF SE Germany 3.6%
FANUC Corp. Japan 3.2%
ING Groep NV Netherlands 3.0%
Siemens AG Germany 3.0%
ABB Ltd. Switzerland 2.9%
Samsung Electronics Co., Ltd. South Korea 2.9%
Novartis AG Switzerland 2.8%
Takeda Pharmaceutical Co., Ltd. Japan 2.6%

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.

Holdings are subject to change.

SECTOR WEIGHTS
Sector Fund Benchmark
Industrials 24.4% 15.0%
Financials 22.8% 16.0%
Information Technology 10.5% 8.4%
Consumer Discretionary 10.4% 11.7%
Health Care 9.3% 13.9%
Materials 8.4% 7.6%
Consumer Staples 5.8% 11.8%
Energy 3.0% 3.1%
Communication Services 3.0% 5.4%
Utilities 1.5% 4.0%
Real Estate 0.0% 3.2%
TOP 10 COUNTRIES
Country Fund Benchmark
Germany 21.5% 9.6%
United Kingdom 17.4% 13.7%
France 14.2% 10.9%
Switzerland 10.3% 10.2%
Japan 9.0% 25.0%
Netherlands 5.5% 4.3%
Spain 5.0% 2.3%
Italy 4.8% 2.3%
China 2.9% 0.0%
South Korea 2.9% 0.0%
Regional Allocation
  • Europe – other 82.5%
  • Pacific 9.6%
  • Emerging Asia 5.8%
  • Emerging Latin America 0.6%
  • North America 0.5%

Commentary (As of August 31, 2020)

Highlights

  • Global equity markets continued to rally in August, as improving economic data in some geographies combined with highly accommodative monetary policy globally and renewed optimism for a COVID-19 vaccine appeared to bolster investor sentiment.
  • The Eurozone seasonally adjusted unemployment rate ticked up marginally in July (from 7.7% in June to 7.9%), suggesting that social safety nets and early action by fiscal authorities at the onset of the pandemic staved off major job losses. We believe this and other indicators are constructive for Europe’s economy to emerge from the pandemic-induced recession in a strong position.
  • Though our investment horizon remains long-term, heightened stock price volatility translates to prices moving faster in this market dislocation. Valuation matters. We remain disciplined on the price we are willing to pay for stocks in the fund that provide, in our view, the best risk-adjusted return potential.

Portfolio attribution

Causeway International Value Fund (“Fund”) outperformed the Index during the month, due primarily to stock selection. Fund holdings in the banks and semiconductors & semi equipment industry groups, as well as an overweight position in the transportation and automobiles & components industry groups and an underweight position in the household & personal products industry group, contributed to performance relative to the Index. Holdings in the technology hardware & equipment, capital goods, and media & entertainment industry groups, along with an underweight position in the real estate and commercial & professional services industry groups, offset some of the outperformance versus the Index. The top contributor to return was automobile manufacturer, Volkswagen AG (Germany). Other notable contributors included financial services provider, ING Groep NV (Netherlands), diversified chemicals manufacturer, BASF SE (Germany), mail, express & logistics services provider, Deutsche Post AG (Germany), and banking & financial services provider, UniCredit S.p.A. (Italy). The largest detractor from performance was electronic equipment manufacturer, Samsung Electronics Co., Ltd. (South Korea). Additional notable detractors included electronic components manufacturer, Murata Manufacturing Co., Ltd. (Japan), bank, BBVA SA (Spain), civil construction company, Balfour Beatty Plc (United Kingdom), and pharmaceutical giant, Sanofi (France).

Investment outlook

The COVID-19 pandemic continues to upend normal routines, and for longer than initially anticipated. Yet strong equity returns in August—notably in economically cyclical stocks—appeared to reflect investors’ exuberance for a potential COVID-19 vaccine. We are convinced that with a safe and widely available vaccine, many of the changed behaviors due to the virus will revert and provide a significant revenue boost to companies in the epicenter of COVID-19 restrictions, such as companies in the travel and leisure, aviation, and aerospace industries. We believe a vaccine (and in the meantime, effective therapies) could catalyze an unwinding of the massive premium afforded to growth stocks—particularly high-flying technology companies—that benefit from COVID-19 trends. Despite the prolonged market environment favoring growth stocks, we continue to identify companies that are taking advantage of the crisis to cut costs and improve efficiency. We remain focused on thoroughly assessing the balance sheet strength of our portfolio companies to ensure they can withstand the drop in revenues until the recovery firmly takes hold. Given the uncertainty on the timing of a viable COVID-19 vaccine, we recognize the diminished visibility on near-term earnings. We anticipate some of the greatest upside potential in companies in oligopolistic industry structures (offering pricing power) with strong moats against competition. Finally, though our investment horizon remains long-term, heightened stock price volatility translates to prices moving faster in this market dislocation. Valuation matters. We remain disciplined on the price we are willing to pay for stocks in the fund that provide, in our view, the best risk-adjusted return potential.

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
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: