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*
+8.68%
Nav*
$17.65, +0.02
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 April 13, 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 6.9%6.9%65.7%4.6%8.1%5.3%7.3%
MSCI EAFE 3.6%3.6%45.2%6.5%9.4%6.0%6.7%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 6.9%6.9%65.7%4.6%8.1%5.3%7.3%
MSCI EAFE 3.6%3.6%45.2%6.5%9.4%6.0%6.7%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 6.9%6.9%65.7%4.6%8.1%5.3%7.3%
MSCI EAFE 3.6%3.6%45.2%6.5%9.4%6.0%6.7%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 6.9%6.9%65.7%4.6%8.1%5.3%7.3%
MSCI EAFE 3.6%3.6%45.2%6.5%9.4%6.0%6.7%
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 February 28, 2021)

Benchmark: MSCI EAFE
Asset Allocation
Fund
Stocks 98.6%
Cash 1.4%
Fund Characteristics
Fund Benchmark
No. of holdings 58 874
Weighted avg. market cap (US $MM) $69,213 $58,887
FY2 price/earnings 12.2 15.5
Price/book value 1.4 1.8
Net assets $5,460,918,447 -
TOP 10 HOLDINGS
Security Country Percent
Volkswagen AG Germany 4.2%
Rolls-Royce Holdings Plc United Kingdom 3.9%
Samsung Electronics Co., Ltd. South Korea 3.6%
UniCredit S.p.A. Italy 3.1%
Total France 3.0%
BASF SE Germany 3.0%
Siemens AG Germany 2.7%
Novartis AG Switzerland 2.7%
Sanofi France 2.6%
Takeda Pharmaceutical Co., Ltd. Japan 2.5%

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 21.9% 17.3%
Industrials 21.6% 15.4%
Information Technology 14.1% 9.0%
Health Care 10.8% 12.1%
Consumer Discretionary 9.8% 12.6%
Consumer Staples 6.2% 10.0%
Materials 5.2% 8.2%
Energy 5.0% 3.4%
Utilities 3.4% 3.6%
Communication Services 0.4% 5.3%
Real Estate 0.0% 3.1%
TOP 10 COUNTRIES
Country Fund Benchmark
France 16.5% 11.1%
Germany 16.3% 9.3%
United Kingdom 16.0% 14.3%
Switzerland 11.2% 9.1%
Japan 9.3% 25.2%
Spain 7.6% 2.4%
South Korea 5.9% 0.0%
Italy 4.8% 2.5%
Netherlands 4.6% 4.0%
Canada 1.9% 0.0%
Regional Allocation
  • Europe – other 78.7%
  • Pacific 10.3%
  • North America 1.9%
  • Emerging Asia 7.0%
  • Emerging Latin America 0.6%

Commentary (As of February 28, 2021)

Highlights

  • Worldwide, new Covid-19 infections dropped in February and with the vaccination rollout gathering pace, optimism for an eventual end to the pandemic drove equity markets higher.
  • Bond yields rose as market participants price in higher future growth and inflation expectations. With the lagged effect of sizable global monetary and fiscal spending, this upward pressure on long-term bond yields will likely persist.
  • We focus our fundamental research efforts on well-managed companies that have utilized this crisis to their advantage by removing significant amounts of fixed costs within operating expenses. As revenues recover, we anticipate many of these companies will achieve historically high operating margins, and this should translate into higher growth rates in earnings and cash flows.

Portfolio attribution

The Causeway International Value Fund (“Fund”) outperformed the Index during the month, due primarily to stock selection. Fund holdings in the banks, transportation, capital goods, semiconductors & semi equipment, and retailing industry groups contributed to outperformance relative to the Index. Holdings in the utilities industry group, along with an overweight position in the technology hardware & equipment industry group and underweight positions in the consumer durables & apparel, telecommunication services, and materials industry groups, offset a portion of the outperformance. The top contributor to return was jet engine manufacturer, Rolls-Royce Holdings Plc (United Kingdom). Other notable contributors included financial services provider, ING Groep NV (Netherlands), automobile manufacturer, Volkswagen AG (Germany), bank, Banco Bilbao Vizcaya Argentaria SA (Spain), and airline, Air Canada (Canada). The largest detractor from absolute performance was electronic components manufacturer, Murata Manufacturing Co. Ltd. (Japan). Additional detractors included electric utility provider, RWE AG (Germany), Takeda Pharmaceutical Co., Ltd. (Japan), pharmaceutical producer, Novartis AG (Switzerland), and robotics manufacturer, FANUC Corp. (Japan).

Investment outlook

The emphasis we have placed on high-quality cyclical stocks continued to be beneficial in February. The reopening of economies globally will likely be supported, on a multi-year basis, by the greatest amount of government spending incurred since WWII. Rising bond yields should further support undervalued stocks in lieu of long-duration stocks with modest or negligible current cash flows. We focus our fundamental research efforts on well-managed companies that have utilized this crisis to their advantage by removing significant amounts of fixed costs within operating expenses. In our view, these improvements in efficiency will lead to a permanently lower cost base and thereby, improved operating leverage. As revenues recover, we anticipate many of these companies will achieve historically high operating margins, and this should translate into higher growth rates in earnings and cash flows. In particular, we expect companies experiencing the biggest drags on revenues from the pandemic—such as air travel and travel or hotel booking software—to transition from loss-making to generating substantial free cash flows. As the global population becomes vaccinated, this should stoke demand for travel and hospitality. In addition, we anticipate a resumption in dividends and share buybacks from many of our portfolio companies as free cash flow rises, an important component of total return.

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: