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*
+2.30%
Nav*
$17.79, -0.17
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 January 21, 2022
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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 0.9%9.1%9.1%11.4%7.4%7.3%7.1%
MSCI EAFE 2.7%11.8%11.8%14.1%10.1%8.5%6.8%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 0.9%9.1%9.1%11.4%7.4%7.3%7.1%
MSCI EAFE 2.7%11.8%11.8%14.1%10.1%8.5%6.8%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 0.9%9.1%9.1%11.4%7.4%7.3%7.1%
MSCI EAFE 2.7%11.8%11.8%14.1%10.1%8.5%6.8%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 0.9%9.1%9.1%11.4%7.4%7.3%7.1%
MSCI EAFE 2.7%11.8%11.8%14.1%10.1%8.5%6.8%
20212020201920182017201620152014201320122011201020092008200720062005200420032002
Fund 9.1%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 11.8%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
20212020201920182017201620152014201320122011201020092008200720062005200420032002
9.1%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%
11.8%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 December 31, 2021)

Benchmark: MSCI EAFE
Asset Allocation
Fund
Stocks 98.1%
Cash 1.9%
Fund Characteristics
Fund Benchmark
No. of holdings 60 829
Weighted avg. market cap (US $MM) $77,297 $72,240
FY2 price/earnings 11.9 14.9
Price/book value 1.6 1.9
Net assets $6,196,792,320 -
TOP 10 HOLDINGS
Security Country Percent
Rolls-Royce Holdings Plc United Kingdom 4.0%
UniCredit S.p.A. Italy 3.7%
Samsung Electronics Co., Ltd. South Korea 3.6%
FANUC Corp. Japan 3.4%
BP Plc United Kingdom 3.1%
TotalEnergies SE France 3.1%
Novartis AG Switzerland 3.1%
Sanofi France 3.1%
SAP SE Germany 2.9%
Amadeus IT Group SA Spain 2.9%

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 19.9% 16.9%
Industrials 19.0% 16.2%
Health Care 14.4% 12.8%
Information Technology 12.9% 9.7%
Energy 8.1% 3.4%
Consumer Discretionary 8.0% 12.5%
Consumer Staples 7.0% 10.3%
Utilities 4.5% 3.4%
Materials 4.3% 7.6%
Real Estate 0.0% 2.8%
Communication Services 0.0% 4.5%
TOP 10 COUNTRIES
Country Fund Benchmark
United Kingdom 21.5% 14.6%
France 15.2% 11.7%
Germany 11.4% 8.9%
Switzerland 10.4% 10.5%
Japan 8.5% 22.5%
Spain 7.1% 2.2%
Italy 6.2% 2.5%
South Korea 5.2% 0.0%
Netherlands 4.5% 4.9%
Canada 2.2% 0.0%
Regional Allocation
  • Europe – other 78.7%
  • Pacific 15.1%
  • North America 2.2%
  • Emerging Asia 1.2%
  • Emerging Latin America 0.9%

Commentary (As of December 31, 2021)

Highlights

  • Global equities rallied in December, capping off the third consecutive calendar year of strong positive returns.
  • Concurrent with the easing of Covid-related restrictions, we anticipate the pressures from tangled supply chains and tight labor markets to lessen in 2022. As developed market central banks attempt to combat inflationary trends stoked by supply bottlenecks and massive amounts of stimulus, we await gradual increases in policy rates in most regions.
  • As borders reopen, we anticipate pent-up demand from consumers to translate into revenue recovery for companies in aerospace, aviation, travel, and leisure-related industries. In our view, some of the best positioned companies in these industries operate in oligopolies with management teams who have used the pandemic crisis to meaningfully cut costs. We expect this to result in high levels of profitability as revenues recover.

Portfolio attribution

The Causeway International Value Fund (“Fund”) outperformed the Index during the month, due primarily to stock selection. Fund holdings in the banks, software & services, technology hardware & equipment, pharmaceuticals & biotechnology, and semiconductors & semi equipment industry groups contributed to performance relative to the Index. Holdings in the capital goods, diversified financials, and transportation industry groups, along with an overweight position in the utilities industry group and an underweight position in the food beverage & tobacco industry group, offset a portion of the outperformance. The top contributor to return was banking & financial services company, UniCredit S.p.A. (Italy). Additional top contributors included electronic equipment manufacturer, Samsung Electronics Co., Ltd. (South Korea), integrated oil & gas company, TotalEnergies SE (France), pharmaceutical producer, Novartis AG (Switzerland), and business software & services provider, SAP SE (Germany). The largest detractor from absolute performance was freight rail operator, Canadian National Railway Co (Canada). Other weak performers, though still delivering positive returns, included banking & financial services provider, Swedbank AB (Sweden), financial services company, PT Bank Mandiri (Persero) Tbk (Indonesia), semiconductor company, Infineon Technologies AG (Germany), and financial services provider, ING Groep NV (Netherlands).

Investment outlook

With policymakers on track to tighten monetary conditions, we expect a compression of the highest valuation multiples for speculative growth stocks. The sobering effect on equity markets as liquidity is removed should favor a disciplined valuation-based investing approach. As geographic borders reopen, we anticipate this pent-up demand from consumers to translate to revenue recovery for companies in aerospace, aviation, travel, and leisure-related industries. In our view, the best positioned companies in these industries operate in oligopolies with management teams who have used the pandemic crisis to meaningfully cut costs. We expect this to result in high profitability as revenues return to pre-Covid era levels. In all regions, we are most interested in companies undergoing operational restructuring; we routinely push management teams to focus on self-help to improve free cash flow generation and reward shareholders. Longer term, we believe one of the most enduring investment theme over the next several years will be decarbonization and climate amelioration. We believe companies in traditionally carbon-intensive industries that demonstrate the wherewithal to transition their operations to low or zero greenhouse gas emissions, without sacrificing returns, stand to benefit most from increased investor attention. Finally, while we expect some normalization of interest rates, we continue to emphasize companies rewarding shareholders via dividends and share buybacks. Though government bond yields may increase from current levels, capital returned to shareholders via dividends and share buybacks remain the most certain portion 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
2021 $0.3170 $0.0000 $0.0000
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: