Advisor Login

Forgot Password?

Don't have an account?

An email has been sent to you with further instructions on how to reset your password.Please make sure to check your spam folder just in case.

Please reset your password with the form below.

Get instant access by filling out this form.

International Small Cap

Strategy Profile

The international small cap strategy invests primarily in common stocks of companies with smaller market capitalizations located in developed and emerging markets outside the U.S. The portfolio normally invests at least 80% of its total assets in equity securities of companies with smaller market capitalizations. Smaller market capitalization companies are companies with market capitalizations that do not exceed the highest market capitalization of a company within the portfolio’s benchmark, the MSCI ACWI ex USA Small Cap Index (Gross), at the time of purchase. Some of these companies, although small by U.S. standards, might be large companies in their local markets. The Fund may continue to hold securities of a portfolio company that appreciate above the smaller market capitalization threshold and thus may from time to time hold less than 80% of its total assets in equity securities of companies with smaller market capitalizations. The portfolio may invest in a wide range of industries.

Inception Date30 Nov 2014
Benchmark MSCI AC World ex USA Small Cap

Performance

Fund Quarter to Date Year to Date 1 Year3 Year Since Inception
Gross % 8.4%8.4%-18.9%10.4%6.7%
Net % 8.3%8.3%-19.6%9.3%5.6%
MSCI AC World ex USA Small Cap 7.8%7.8%-15.6%9.7%5.3%

Portfolio

Asset Allocation as of 31 Jan 2019

Stocks 99%
Cash 1%

Characteristics as of 31 Jan 2019

Causeway MSCI AC World ex USA Small Cap
No. of Holdings 140 4142
Wtd. Avg. Market Cap (Mn $US)$1,448$1,650
FY2 Price/Earnings8.513.1
Price/Book Value1.11.4
Dividend Yield (%)4.42.7

SECTOR WEIGHTS as of 31 Jan 2019

Industrials14.74%
Financials14.30%
Real Estate11.04%
Consumer Discretionary10.58%
Materials10.57%
Information Technology9.32%
Consumer Staples7.77%
Energy7.38%
Health Care5.89%
Equity Funds3.35%
Communication Services2.25%
Utilities1.83%

(VS. Benchmark)

Industrials19.39%
Financials10.94%
Real Estate11.32%
Consumer Discretionary12.99%
Materials10.39%
Information Technology10.01%
Consumer Staples6.47%
Energy3.29%
Health Care7.47%
Equity Funds0.00%
Communication Services4.44%
Utilities3.29%
Industrials
Financials
Real Estate
Consumer Discretionary
Materials
Information Technology
Consumer Staples
Energy
Health Care
Equity Funds
Communication Services
Utilities
Other

TOP 10 COUNTRIES as of 31 Jan 2019

Japan17.73%
United Kingdom13.00%
Taiwan8.46%
Australia7.95%
Sweden6.54%
Norway5.20%
Canada4.57%
China3.89%
India3.10%
Germany3.03%
Netherlands2.78%
South Korea2.56%
Mexico2.34%
Italy2.25%
Denmark2.18%
Brazil2.08%
South Africa2.01%
Singapore1.62%
Turkey1.31%
Switzerland1.06%
Thailand1.00%
Indonesia0.94%
France0.74%
Greece0.70%
Israel0.30%
Hong Kong0.30%
Spain0.29%
Chile0.29%
Portugal0.29%
Malaysia0.28%
Belgium0.26%
Ireland0.00%
Austria0.00%
Finland0.00%
Multi-National Developed0.00%
Pakistan0.00%
Philippines0.00%
Czech Republic0.00%
Egypt0.00%
New Zealand0.00%
Colombia0.00%
United Arab Emirates0.00%
Hungary0.00%
Poland0.00%
Qatar0.00%
Russia0.00%
Peru0.00%
Multi-National All Country0.00%

(VS. Benchmark)

Japan22.27%
United Kingdom13.51%
Taiwan3.78%
Australia5.27%
Sweden3.99%
Norway1.60%
Canada6.90%
China2.42%
India3.04%
Germany4.25%
Netherlands1.93%
South Korea3.72%
Mexico0.62%
Italy2.55%
Denmark1.27%
Brazil1.49%
South Africa1.19%
Singapore1.30%
Turkey0.28%
Switzerland3.16%
Thailand0.82%
Indonesia0.58%
France2.41%
Greece0.19%
Israel1.29%
Hong Kong1.44%
Spain1.80%
Chile0.37%
Portugal0.30%
Malaysia0.64%
Belgium1.41%
Ireland0.39%
Austria0.65%
Finland1.09%
Multi-National Developed0.00%
Pakistan0.17%
Philippines0.20%
Czech Republic0.01%
Egypt0.12%
New Zealand0.73%
Colombia0.06%
United Arab Emirates0.11%
Hungary0.03%
Poland0.24%
Qatar0.22%
Russia0.19%
Peru0.02%
Multi-National All Country0.00%
Japan
United Kingdom
Taiwan
Australia
Sweden
Norway
Canada
China
India
Germany
Netherlands
South Korea
Mexico
Italy
Denmark
Brazil
South Africa
Singapore
Turkey
Switzerland
Thailand
Indonesia
France
Greece
Israel
Hong Kong
Spain
Chile
Portugal
Malaysia
Belgium
Ireland
Austria
Finland
Multi-National Developed
Pakistan
Philippines
Czech Republic
Egypt
New Zealand
Colombia
United Arab Emirates
Hungary
Poland
Qatar
Russia
Peru
Multi-National All Country
Other

TOP 10 ACTIVE HOLDINGS as of 31 Jan 2019

Security Country Industry Active Weight*
EVRAZ Plc United Kingdom Materials 1.8
C&C Group Plc United Kingdom Food Beverage & Tobacco 1.8
ASR Nederland NV Netherlands Insurance 1.7
Royal Unibrew A/S Denmark Food Beverage & Tobacco 1.7
Makalot Industrial Co., Ltd. Taiwan Consumer Durables & Apparel 1.6
Radiant Opto-Electronics Corp. Taiwan Semiconductors & Semi Equipment 1.6
Yanlord Land Group Ltd. Singapore Real Estate 1.6
Coretronic Corp. Taiwan Technology Hardware & Equipment 1.6
FIBRA Macquarie México Mexico Real Estate 1.5
HASEKO Corp. Japan Consumer Durables & Apparel 1.5

Approach

For Causeway International Small Cap strategy, our quantitative process examines a multitude of factors within four main categories to gauge the return potential of a stock. First, we seek relatively inexpensive valuations. Second, we want to see accelerating earnings growth prospects and upward earnings estimate revisions from the sell-side analysts who cover the stock. Third, we look for positive recent momentum, since recent trends tend to persist. And fourth, we want to find quality by seeking stocks with a focus on strong free cash flow generation rather than simply sales growth. We then rank the stocks on these factors to identify candidates that we believe should produce the most attractive risk-adjusted returns. Before we establish new positions, our fundamental portfolio managers and analysts review stocks in their sector of coverage and report any “red flags” that may be outside the scope of quantitative analysis.

We take many steps to monitor and manage risk within the portfolio. We start by including in our tradable universe only the roughly 2,800 stocks that trade at least $1 million per day on average, to seek sufficient liquidity and to minimize market impact when we enter and exit positions. We intend for the portfolio to also typically contain between 120 and 200 stocks at any one time, and this breadth is intended to limit idiosyncratic risk.

Commentary

PERFORMANCE REVIEW for the month ended 31 Dec 2018


Heightened geopolitical tensions and concerns of a broader slowdown in global economic growth pressured equity markets in December. International smaller capitalization (“cap”) equities, as measured by the MSCI ACWI ex USA Small Cap Index (“Index”), underperformed international large caps in December. Within international smaller cap equities, emerging markets stocks significantly outperformed developed markets stocks, almost eliminating their year-to-date underperformance. Emerging markets have thus far proven relatively resilient to the elevated market volatility recently. All eleven sectors within the Index posted negative returns for the month. Among them, the strongest performing sectors were utilities, real estate, and materials. Energy, information technology, and consumer discretionary were among the weakest performing sectors.

The Portfolio modestly outperformed with the Index during the month. To evaluate stocks in our investable universe, our multi-factor quantitative model employs four bottom-up factor categories – valuation, earnings growth, technical indicators, and quality – and two top-down factor categories assessing macroeconomic and country aggregate characteristics.

In December, value factors generated slightly positive returns and finished the year as one of the better performing factors, thanks to a strong fourth quarter. Earnings growth factors delivered positive returns in the month of December after significant headwinds in October and November. Technical factors delivered slightly negative returns in December and were the worst-performing bottom-up factor group in the fourth quarter as we witnessed a reversal in market sentiment away from many of the stocks that previously led the market. Some of 2018’s best-performing stocks through the third quarter (i.e., those with strong technical indicators) were subsequently hardest hit in the fourth quarter market sell-off. The quality factor group posted positive returns in December and was the best performing bottom-up factor group in the fourth quarter and in 2018. All bottom-up factor group returns are positive from the inception of the Portfolio to the end of December. Within our top-down factor groups, our macroeconomic factors posted positive returns in December as countries with superior macroeconomic metrics outperformed those exhibiting relatively weaker metrics. However, returns to our country aggregate factors were negative.

Portfolio holdings in the information technology, financials, and industrials sectors contributed the most to relative outperformance. Holdings in the consumer staples, communication services, and an underweight to the utilities sector offset a portion of the relative performance. Relative performance for the month can be mostly attributed to stock selection. The largest contributor to performance relative to the Index was lithium battery producer, Simplo Technology Co., Ltd. (Taiwan). Additional top contributors included gold miner, Harmony Gold Mining Co. Ltd. (South Africa), financial services provider, BinckBank NV (Netherlands), steel & iron distribution company, EVRAZ Plc (United Kingdom), and mining company, African Rainbow Minerals Ltd. (South Africa). The largest detractor to relative performance was construction company, Implenia AG (Switzerland). Additional top detractors included electronic component manufacturer, Taiyo Yuden Co., Ltd. (Japan), paper products manufacturer, Canfor Pulp Products (Canada), engineering and construction company, HASEKO Corp. (Japan), and integrated oil refiner & producer, Esso Thailand Public Co. Ltd.(Thailand).*

*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.

Consent to Electronic Delivery

Consent to Electronic Delivery

By clicking Submit, you consent to the electronic delivery, via download from this website, of the Causeway Fund's prospectuses, privacy policies, account applications, IRA Disclosure Statement(s), IRA Custodial Agreement(s) and any other materials that may be required in connection with the information you requested, on the terms set forth below. You also agree to read these documents before investing, and agree to the terms contained in these documents, particularly the prospectus.

Access to Online Documents

To view and print the documents, you will need Adobe Acrobat Reader. If you do not have Acrobat Reader, you can download it for free at www.adobe.com. If you are unable to download, view, or print the documents, contact Causeway Funds at 866-947-7000 for assistance or to request a free paper copy of any of these documents.

Duration of Election and Consent

Your consent applies only to these documents. If you request additional information, you may be required to consent to electronic delivery again. You may withdraw your consent to electronic delivery by contacting Causeway Funds at 866-947-7000.

Costs and Risks

Causeway Funds does not charge you a fee to use our website, but you could incur expenses from an internet service provider when you access information online. Also, be aware that your internet service provider may occasionally experience system failure, and hyperlinks to documents may not function properly.

Submit
close
Ask Causeway

Ask Causeway

Thank You!