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*
- +9.67%
- Nav*
- $17.69, +0.18
- Inception
- October 26, 2001
- Cusip
- 14949P109
- Benchmark
- MSCI EAFE
- Minimum Investment
- $5,000
- Sales Charge
- None
- Net Expense Ratio
- 1.10%
- Gross Expense Ratio
- 1.13%
Portfolio managers
Brian Cho
Mr. Cho is a fundamental portfolio manager at Causeway. He joined the firm in September 2013 and has been a portfolio manager since January 2021. His current responsibilities include coverage of companies in the technology and communication services sectors.
From 2011 to 2013, Mr. Cho was a vice president at BofA-ML Equity Research, covering the IT hardware and supply chain sector. From 2007 to 2011, he worked as an associate at Goldman Sachs Equity Research covering the same sector. From 2006 to 2007, he worked as an analyst at Morgan Stanley Equity Research covering the internet and interactive software sector. Prior to that, he worked as an analyst at PA Consulting Group in the financial services practice.
Mr. Cho earned a BSc in management science from Massachusetts Institute of Technology.
Read our interview with Brian about value investing in the technology sector.
Jonathan Eng
Mr. Eng is a director and fundamental portfolio manager at Causeway and is responsible for investment research in the global consumer discretionary, industrials, and energy sectors. He joined the firm in July 2001 and has been a portfolio manager since February 2002.
From 1997 to 2001, Mr. Eng was an equity research associate for the Hotchkis and Wiley division of Merrill Lynch Investment Managers (HW-MLIM). In 1996, Mr. Eng worked as a summer research associate for Hotchkis and Wiley, performing U.K. and European equity research. From 1993 to 1995, Mr. Eng analyzed merger and acquisition candidates at Slusser Associates. From 1990 to 1993, Mr. Eng worked as a middle market corporate lender for Bank of Boston.
Mr. Eng earned a BA in history and economics from Brandeis University and an MBA from the UCLA Anderson Graduate School of Management
Harry Hartford
Head of Fundamental Research
Fundamental Portfolio Manager
Mr. Hartford is the president at Causeway, fundamental portfolio manager, and head of fundamental research. Mr. Hartford co-founded the firm in June 2001 and is a member of the operating committee.
From 1996 to June 2001, Mr. Hartford was a managing director for the Hotchkis & Wiley division of Merrill Lynch Investment Managers (HW-MLIM) and co-head of the firm's HW-MLIM international and global value team. From 1994 to 1996, Mr. Hartford was a portfolio manager for Hotchkis and Wiley. From 1984 to 1994, Mr. Hartford was with The Investment Bank of Ireland, where he gained ten years’ experience in both international and global equity management. During this time, Mr. Hartford also managed the Irish Investment Fund, a closed-end country fund quoted on the NYSE. Before entering the investment business, Mr. Hartford lectured in micro and macroeconomics at Oklahoma State University.
Mr. Hartford earned a BA, with honors, in economics from the University of Dublin, Trinity College, an MSc in economics from Oklahoma State University, and is a Phi Kappa Phi member. Mr. Hartford is a member of The Ireland Funds America Board of Directors and serves as chair of the Los Angeles Regional Board.
Sarah Ketterer
Fundamental Portfolio Manager
Ms. Ketterer is the chief executive officer at Causeway, fundamental portfolio manager, and is responsible for investment research across all sectors. Ms. Ketterer co-founded the firm in June 2001 and is a member of the operating committee.
From 1996 to 2001, Ms. Ketterer worked for the Hotchkis & Wiley division of Merrill Lynch Investment Managers (HW-MLIM). At HW-MLIM, she was a managing director and co-head of the firm's HW-MLIM International and Global Value team. From 1990 to 1996, Ms. Ketterer was a portfolio manager at Hotchkis & Wiley, where she founded the International Equity product.
Ms. Ketterer earned a BA in economics and political science from Stanford University and an MBA from the Tuck School, Dartmouth College. She is currently a member of the Stanford University Board of Trustees, a board member of the Los Angeles World Affairs Council and Town Hall, chair of the investment committee for the Music Center Foundation, and serves on the Girls Who Invest President’s Council.
Ellen Lee
Ms. Lee is a director and fundamental portfolio manager at Causeway and is responsible for investment research in the global consumer and utilities sectors. Prior to the current role, she also covered transportation and autos. She joined the firm in August 2007 and has been a portfolio manager since January 2015.
During the summer of 2006, Ms. Lee interned at Tiger Asia, a long short equity hedge fund focused on China, Japan, and Korea. From 2001 to 2004, Ms. Lee was an associate in the mergers and acquisitions division of Credit Suisse First Boston in Seoul, where she advised Korean corporates and multinational corporations. From 1999 to 2000, she was an analyst in the mergers and acquisitions division of Credit Suisse First Boston in Hong Kong.
Ms. Lee earned a BA in business administration from Seoul National University and an MBA from the Stanford Graduate School of Business. She currently serves on the audit and investment committee at the Center for Early Education in West Hollywood.
Conor Muldoon, CFA
Mr. Muldoon is a director and fundamental portfolio manager at Causeway and is responsible for investment research in the global financials and materials sectors. He joined the firm in August 2003 and has been a portfolio manager since September 2010. He is also a member of the operating committee.
From 1995 to 2003, Mr. Muldoon was an investment consultant for Fidelity Investments where he served as a liaison between institutional clients and investment managers within Fidelity. He was responsible for communicating current information on the financial markets, the economy and investment performance.
Mr. Muldoon earned a BSc and an MA from the University of Dublin, Trinity College and an MBA, with high honors, from the University of Chicago. Mr. Muldoon was inducted into the Beta Gamma Sigma honors society and is also a CFA charterholder.
Steven Nguyen, CFA
Mr. Nguyen is a director and fundamental portfolio manager at Causeway and is responsible for investment research in the industrials, energy, utilities, and healthcare sectors. He joined the firm in April 2012 and has been a portfolio manager since January 2019.
From 2006 to 2012, Mr. Nguyen was a senior credit analyst at Bradford & Marzec covering high yield and investment grade companies in the telecommunication services, cable, media, gaming, insurance, and REIT industries. From 2003 to 2006, Mr. Nguyen was a credit analyst/portfolio manager in the corporate bond department of Allegiance Capital.
Mr. Nguyen earned a BA in business economics from Brown University and an MBA, with honors, from the UCLA Anderson School of Management. Mr. Nguyen was the president of the Anderson Student Asset Management association. Mr. Nguyen is a CFA charterholder.
Alessandro Valentini, CFA
Mr. Valentini is a director and fundamental portfolio manager at Causeway and is responsible for investment research in the global healthcare, financials, and materials sectors. He joined the firm in July 2006 and has been a portfolio manager since April 2013.
During the summer of 2005, Mr. Valentini worked as a research analyst at Thornburg Investment Management, where he conducted fundamental research for the International Value Fund and the Value Fund, focusing on the European telecommunication and Canadian oil sectors. From 2000 to 2004, Mr. Valentini worked as a financial analyst at Goldman Sachs in the European equities research-sales division in New York.
Mr. Valentini earned an MBA from Columbia Business School, with honors, an MA in economics from Georgetown University and a BS, magna cum laude, from Georgetown University. Mr. Valentini was inducted into the Beta Gamma Sigma honors society, is a Phi Beta Kappa member, and is a CFA charterholder.
Performance
The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth less than their original cost and current performance may be lower than the performance quoted. Returns greater than one year are average annual total returns. Total returns assume reinvestment of dividends and capital gains distributions at net asset value when paid. All information is as of the date shown. Investment performance may reflect contractual fee waivers. In the absence of such fee waivers, total return would be reduced. The expense ratio for Investor Class shares is 1.15% and for Institutional Class shares is 0.90%.
Portfolio (as of June 30, 2021)
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 | $363,279,180 | - |
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%
Distributions
| Dividends | Short-term capital gains | Long-term capital gains | |
|---|---|---|---|
| 2020 | $0.1786 | $0.0000 | $0.0000 |
| 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:
Forms:
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Commentary (As of June 30, 2021)
Highlights
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.