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*
$14.84, +0.10
October 26, 2001
Minimum Investment
Sales Charge
Net Expense Ratio
*As of June 19, 2019

Strategy overview

The portfolio managers discuss our International Value strategy.

Portfolio managers

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


QTD YTD 1 year3 years5 years10 years Since inception
Fund -5.1%4.6%-11.2%3.4%-0.6%6.4%6.5%
MSCI EAFE -1.9%8.0%-5.3%6.3%1.8%6.7%6.0%
QTD YTD 1 year3 years5 years10 years Since inception
Fund -5.1%4.6%-11.2%3.4%-0.6%6.4%6.5%
MSCI EAFE -1.9%8.0%-5.3%6.3%1.8%6.7%6.0%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 10.3%10.3%-6.7%6.4%0.8%9.8%6.9%
MSCI EAFE 10.1%10.1%-3.2%7.8%2.8%9.5%6.1%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 10.3%10.3%-6.7%6.4%0.8%9.8%6.9%
MSCI EAFE 10.1%10.1%-3.2%7.8%2.8%9.5%6.1%
Fund -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 -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 May 31, 2019)

Benchmark: MSCI EAFE
Asset Allocation
Stocks 99.0%
Cash 1.0%
Fund Characteristics
Fund Benchmark
No. of holdings 57 924
Weighted avg. market cap (US $MM) $53,437 $49,969
FY2 price/earnings 9.8 12.3
Price/book value 1.2 1.5
Net assets $5,972,322,603 -
Security Country Percent
Volkswagen AG Germany 4.7%
Takeda Pharmaceutical Co., Ltd. Japan 3.8%
Linde Plc Germany 3.5%
KDDI Corp. Japan 3.1%
ABB Ltd. Switzerland 3.0%
UniCredit S.p.A. Italy 3.0%
Prudential Plc United Kingdom 3.0%
British American Tobacco plc United Kingdom 3.0%
China Mobile Ltd. China 2.8%
BASF SE Germany 2.8%

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 Fund Benchmark
Financials 20.4% 19.0%
Industrials 16.6% 14.7%
Communication Services 11.6% 5.6%
Health Care 10.6% 11.0%
Energy 9.6% 5.6%
Materials 9.5% 7.2%
Consumer Discretionary 7.8% 10.9%
Information Technology 5.9% 6.6%
Consumer Staples 4.8% 12.0%
Utilities 2.2% 3.7%
Real Estate 0.0% 3.7%
Country Fund Benchmark
United Kingdom 32.4% 17.1%
Germany 14.2% 8.6%
Japan 13.6% 24.0%
Switzerland 8.6% 8.9%
Canada 6.6% 0.0%
China 5.6% 0.0%
France 4.5% 11.3%
South Korea 4.2% 0.0%
Netherlands 3.5% 3.6%
Italy 3.4% 2.4%
Regional Allocation
  • Europe – other 68.1%
  • Pacific 19.2%
  • North America 6.0%
  • Emerging Asia 5.4%
  • Emerging Europe, Middle East, Africa 0.3%

Commentary (As of May 31, 2019)


  • Equity markets declined during the month as trade negotiations between the US and China deteriorated and import tariff rates increased. Stocks in industries sensitive to economic growth (cyclicals) suffered greatly during the month versus those in defensive industries.

Portfolio attribution

Causeway International Value Fund (“Fund”) underperformed the Index during the month, due primarily to stock selection. Fund holdings in the media & entertainment, banks, food beverage & tobacco, energy, and insurance industry groups detracted from relative performance. Holdings in the automobiles & components and consumer durables & apparel industry groups, as well as an overweight position in the telecommunication services industry group and an underweight position in the semiconductors & semi equipment and diversified financials industry groups, offset some of the underperformance. The largest detractor was internet services provider, Baidu (China). Additional notable detractors included banking & financial services company, UniCredit S.p.A. (Italy), oil & natural gas producer, Encana (Canada), diversified chemicals manufacturer, BASF SE (Germany), and life insurer, Prudential Plc (United Kingdom). The top contributor to return was telecommunication services provider, KDDI Corp. (Japan). Other notable contributors included pharmaceutical & consumer healthcare products producer, Novartis AG (Switzerland), industrial gas company, Linde Plc (Germany), property & casualty insurer, Sompo Holdings, Inc. (Japan), and print & publishing company, RELX NV (United Kingdom).

Investment outlook

The anticipated “quality and safety” associated with economically defensive stocks attracted even more buying in May, stretching the valuation premium of defensive stocks compared to cyclical stocks to near historic highs. We believe the undervaluation in many of these cyclicals industries such as US and European banks, global oil and gas, global industrials, consumer discretionary, and materials seems extreme, as our analysis indicates the valuations already discount recessionary economic conditions. In May, in particular, trade tensions have amplified risk aversion. And trade relief should do just the opposite, which would likely drive up bond yields and attract investors back to undervalued stocks. However, our price targets do not depend on economic recovery. To the degree managements of our portfolio companies succeed in making significant operational improvements, their equity valuations should benefit and become less macroeconomic dependent. The value style does not rely on an economic environment; it tends to outperform growth when interest rates rise. Although we would welcome a value tailwind, we aim to build a portfolio that seeks to outperform even if investors crowd into long duration, growth equities. We have a preference for companies able to reward shareholder patience with dividends and share buybacks.

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.


Dividends Short-term capital gains Long-term capital gains
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).


Fund information: