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*
+8.44%
Nav*
$17.61, -0.22
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 July 30, 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 2.1%9.1%40.3%6.0%8.8%5.3%7.3%
MSCI EAFE 5.4%9.2%32.9%8.8%10.8%6.4%6.9%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 2.1%9.1%40.3%6.0%8.8%5.3%7.3%
MSCI EAFE 5.4%9.2%32.9%8.8%10.8%6.4%6.9%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 2.1%9.1%40.3%6.0%8.8%5.3%7.3%
MSCI EAFE 5.4%9.2%32.9%8.8%10.8%6.4%6.9%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 2.1%9.1%40.3%6.0%8.8%5.3%7.3%
MSCI EAFE 5.4%9.2%32.9%8.8%10.8%6.4%6.9%
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 June 30, 2021)

Benchmark: MSCI EAFE
Asset Allocation
Fund
Stocks 97.3%
Cash 2.7%
Fund Characteristics
Fund Benchmark
No. of holdings 59 845
Weighted avg. market cap (US $MM) $79,450 $66,247
FY2 price/earnings 12.7 15.3
Price/book value 1.7 1.9
Net assets $5,491,254,757 -
TOP 10 HOLDINGS
Security Country Percent
Samsung Electronics Co., Ltd. South Korea 3.9%
Novartis AG Switzerland 3.4%
UniCredit S.p.A. Italy 3.3%
Rolls-Royce Holdings Plc United Kingdom 3.3%
Sanofi France 3.3%
Roche Holding AG Switzerland 3.2%
Takeda Pharmaceutical Co., Ltd. Japan 3.1%
Amadeus IT Group SA Spain 3.0%
SAP SE Germany 2.9%
Total France 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
Industrials 20.3% 15.5%
Financials 19.6% 17.0%
Information Technology 15.3% 9.1%
Health Care 14.8% 12.4%
Consumer Staples 7.3% 10.5%
Materials 5.3% 7.9%
Consumer Discretionary 5.0% 13.0%
Utilities 4.9% 3.4%
Energy 4.8% 3.2%
Communication Services 0.0% 4.9%
Real Estate 0.0% 3.0%
TOP 10 COUNTRIES
Country Fund Benchmark
United Kingdom 16.4% 14.4%
France 16.3% 11.5%
Switzerland 13.0% 9.8%
Germany 11.3% 9.4%
Japan 9.8% 23.2%
Spain 7.7% 2.5%
South Korea 6.5% 0.0%
Italy 6.0% 2.5%
Netherlands 4.2% 4.3%
Canada 1.8% 0.0%
Regional Allocation
  • Europe – other 76.2%
  • Pacific 10.9%
  • North America 1.8%
  • Emerging Asia 7.5%
  • Emerging Latin America 1.0%

Commentary (As of June 30, 2021)

Highlights

  • Developed market equities largely delivered positive returns in local currency terms during the month of June as vaccination campaigns facilitated further easing of Covid-19-related economic restrictions. Despite the progress, the Delta variant of the virus and differing vaccination rates across geographies have resulted in an uneven recovery.
  • In order to rebuild inventories, we expect business capital expenditures to increase this year. Combined with massive fiscal spending, this should propel further economic gains.
  • With delayed and uneven opening of economies globally, several of the, in our view, high quality aerospace, aviation, travel, and hospitality-oriented stocks have only partially reflected the recovery ahead.

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, transportation, software & services, and insurance industry groups, along with an overweight position in the banks industry group, detracted from performance relative to the Index. Holdings in the consumer durables & apparel and commercial & professional services industry groups, as well as an overweight position in the technology hardware & equipment industry group and an underweight position in the telecommunication services and media & entertainment industry groups, offset a portion of the underperformance. The largest detractor from absolute performance was jet engine manufacturer, Rolls-Royce Holdings Plc (United Kingdom). Additional top detractors included banking & financial services company, UniCredit S.p.A. (Italy), travel & tourism information technology provider, Amadeus IT Group SA (Spain), life insurer, Prudential Plc (United Kingdom), and airline, Air Canada (Canada). The top contributor to return was pharmaceuticals & biotechnology company, Roche Holding AG (Switzerland). Additional top contributors included pharmaceutical provider, Novartis AG (Switzerland), business software & services provider, SAP SE (Germany), electronic components manufacturer, Murata Manufacturing Co. Ltd. (Japan), and beverage producer, Pernod Ricard SA (France).

Investment outlook

Despite the past 15-month surge in equity markets, amplified by the recovery in cyclical stocks from November 2020 vaccine announcements, we believe attractive valuations remain. With delayed and uneven opening of economies globally, several of the, in our view, high quality aerospace, aviation, travel, and hospitality-oriented stocks have only partially reflected the recovery ahead. We observe significant pent up demand for such services, yet travelers still face uncertainty in certain locations and face burdensome Covid-19-related protocols. As vaccinations proliferate, we believe even the most cautious of governments will likely open their respective borders, compelled by economic necessity. In addition to late-stage pandemic stocks, we are also finding what we believe is market underpricing in companies undergoing operational restructuring and in some traditionally defensive sectors such as utilities (those in transition to renewable energy) and healthcare (European pharmaceutical giants with potentially valuable drug pipelines). Companies in the defensive categories tend to generate cash flows surplus to their operating and investment needs (free cash flow), and thus can pay shareholders to wait for prices to reflect what we estimate will be good news. We believe companies less dependent on earnings realization far out in the future should provide a natural hedge in the portfolio to the prospect of rising interest rates, a function of bond markets reflecting economic growth and inflation. If history is any guide, the side effect of higher discount rates and bond market competition should translate into compression of the most speculative of market multiples.

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: