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*
-29.21%
Nav*
$10.98, +0.22
Inception
October 26, 2001
Cusip
14949P109
Benchmark
MSCI EAFE
Minimum Investment
$5,000
Sales Charge
None
Total Expense Ratio
1.15%
*As of April 07, 2020
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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
Fundamental Portfolio Manager

Performance

QTD YTD 1 year3 years5 years10 years Since inception
Fund -32.0%-32.0%-26.1%-8.0%-4.8%1.2%4.6%
MSCI EAFE -22.7%-22.7%-13.9%-1.3%-0.1%3.2%4.9%
QTD YTD 1 year3 years5 years10 years Since inception
Fund -32.0%-32.0%-26.1%-8.0%-4.8%1.2%4.6%
MSCI EAFE -22.7%-22.7%-13.9%-1.3%-0.1%3.2%4.9%
QTD YTD 1 year3 years5 years10 years Since inception
Fund -32.0%-32.0%-26.1%-8.0%-4.8%1.2%4.6%
MSCI EAFE -22.7%-22.7%-13.9%-1.3%-0.1%3.2%4.9%
QTD YTD 1 year3 years5 years10 years Since inception
Fund -32.0%-32.0%-26.1%-8.0%-4.8%1.2%4.6%
MSCI EAFE -22.7%-22.7%-13.9%-1.3%-0.1%3.2%4.9%
201920182017201620152014201320122011201020092008200720062005200420032002
Fund 19.8%-18.8%27.1%0.2%-3.2%-6.5%23.9%24.2%-10.8%12.0%32.0%-42.1%7.6%25.7%7.9%26.3%45.5%-11.2%
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
19.8%-18.8%27.1%0.2%-3.2%-6.5%23.9%24.2%-10.8%12.0%32.0%-42.1%7.6%25.7%7.9%26.3%45.5%-11.2%
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 29, 2020)

Benchmark: MSCI EAFE
Asset Allocation
Fund
Stocks 100.2%
Cash -0.2%
Fund Characteristics
Fund Benchmark
No. of holdings 61 918
Weighted avg. market cap (US $MM) $56,355 $50,198
FY2 price/earnings 9.9 12.8
Price/book value 1.2 1.5
Net assets $384,507,178 -
TOP 10 HOLDINGS
Security Country Percent
Volkswagen AG Germany 4.6%
Takeda Pharmaceutical Co., Ltd. Japan 3.8%
BASF SE Germany 3.6%
UniCredit S.p.A. Italy 3.3%
ABB Ltd. Switzerland 3.1%
China Mobile Ltd. China 3.1%
FANUC Corp. Japan 3.1%
Samsung Electronics Co., Ltd. South Korea 3.0%
British American Tobacco plc United Kingdom 2.9%
Siemens AG 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 WEIGHTS
Sector Fund Benchmark
Industrials 19.9% 14.8%
Financials 18.5% 18.4%
Health Care 12.4% 12.7%
Communication Services 10.9% 5.3%
Materials 8.5% 6.7%
Information Technology 7.8% 7.3%
Energy 7.5% 4.2%
Consumer Staples 6.8% 11.4%
Consumer Discretionary 6.2% 11.3%
Utilities 1.6% 4.2%
Real Estate 0.0% 3.6%
TOP 10 COUNTRIES
Country Fund Benchmark
United Kingdom 24.8% 15.6%
Germany 20.6% 8.6%
Japan 12.6% 24.7%
Switzerland 9.3% 9.7%
France 7.6% 11.3%
China 6.7% 0.0%
South Korea 5.1% 0.0%
Italy 3.3% 2.4%
Netherlands 2.9% 4.1%
Canada 2.7% 0.0%
Regional Allocation
  • Europe – other 72.6%
  • Pacific 12.6%
  • Emerging Asia 11.8%
  • North America 2.7%
  • Emerging Latin America 0.5%

Commentary (As of February 29, 2020)

Highlights

  • We expect the outbreak of the coronavirus to weigh on global gross domestic product (“GDP”) growth, with the greatest drag on China and South Korea, as well as already weak economies in Europe and Japan.
  • Monetary policymakers have already begun implementing supportive measures to ease the financial pain of a prolonged slowdown. A more direct response to counter the effects of the demand slowdown from coronavirus is fiscal stimulus. We believe the virus outbreak may act as a catalyst for European economies, in particular, to enact fiscal stimulus.
  • The recent market downdraft has presented Causeway with a rare opportunity to build positions in high-quality companies in some of the industries most impacted by short-term fear, such as transportation, travel and leisure. We believe our overweight position in cyclical stocks relative to broad benchmarks positions our client portfolios for an eventual recovery in demand for the goods and services from some of the world’s, in our view, best-managed companies with strong balance sheets able to withstand the temporary slowdown.

Portfolio attribution

Causeway International Value Fund (“Fund”) performed in-line with the Index during the month. Holdings in the media & entertainment, food & staples retailing, and technology hardware & equipment industry groups, as well as an underweight position in the consumer durables & apparel and consumer services industry groups, contributed to relative performance. Fund holdings in the pharmaceuticals & biotechnology, banks, and capital goods industry groups, along with an overweight position in the energy and transportation industry groups, detracted from performance compared to the Index. The top contributor to return was payment terminal provider, Ingenico Group SA (France). Other notable contributors included consumer retailer, Carrefour SA (France), integrated oil & gas company, SK Innovation Co., Ltd. (South Korea), construction & mining equipment manufacturer, Komatsu Ltd. (Japan), and beverage bottler, Coca-Cola European Partners Plc (United Kingdom). The largest detractor was diversified chemicals manufacturer, BASF SE (Germany). Additional notable detractors included automobile manufacturer, Volkswagen AG (Germany), industrial conglomerate, Siemens AG (Germany), Takeda Pharmaceutical Co., Ltd. (Japan), and energy supermajor, Royal Dutch Shell Plc (United Kingdom).

Investment outlook

Panic can be one of the best times to invest fundamentally – especially with a value approach. The recent market downdraft has presented Causeway with a rare opportunity to build positions in high-quality companies in some of the industries most impacted by short-term fear, such as transportation, travel and leisure. Though we anticipate temporary earnings reductions for these hardest-hit stocks in the short-term, assets have not been impaired and we are confident in these companies’ management teams. Valuations are increasingly attractive given the precipitous stock price drops in recent weeks. Many multinational companies, as well as those operating entirely in their domestic markets, will likely continue to suffer supply chain delays and rising costs, largely from work disruption in China, Japan, South Korea, and parts of Europe. We believe, however, the earnings and cash flow setbacks will ultimately be temporary, and normalcy should return to supply chains and logistics as virus fears recede over time. Though the nature of the late February selloff broadly punished equities, we have seen the continued divergence between economically cyclical and defensive areas of the markets. In a demand slowdown, we believe stocks at the intersection of cash flow constraints and high debt levels will face larger challenges, which underscores our emphasis on portfolio companies exhibiting superior balance sheet strength. We believe our overweight position in cyclical stocks relative to broad benchmarks positions our client portfolios for an eventual recovery in demand for the goods and services from some of the world’s, in our view, best-managed companies with strong balance sheets able to withstand the temporary slowdown. As we await clarity on the virus and its economic effects, the dividend income from our portfolio holdings is even more attractive relative to sinking bond yields. If the coronavirus does not spark a prolonged period of demand destruction, we feel confident that these companies can maintain their dividends.

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 $0.4569 $0.0497 $0.1781
2018 $0.3394 $0.0000 $0.1083
2017 $0.2972 $0.0000 $0.0000
2016 $0.2619 $0.0000 $0.0000
2015 $0.2382 $0.0000 $0.0000
2014 $0.3395 $0.0000 $0.0000
2013 $0.1315 $0.0000 $0.0000
2012 $0.2502 $0.0000 $0.0000
2011 $0.3540 $0.0000 $0.0000
2010 $0.1625 $0.0000 $0.0000
2009 $0.1672 $0.0000 $0.0000
2008 $0.4799 $0.0000 $0.4558
2007 $0.4051 $0.6606 $3.3443
2006 $0.1856 $0.0222 $0.8650
2005 $0.3366 $0.1962 $0.3833
2004 $0.2380 $0.1379 $0.3093
2003 $0.1618 $0.0037 $0.0550
2002 $0.1068 $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:

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