Seeking value primarily in developed markets worldwide

The Fund invests primarily in common stocks of companies in developed countries located outside the United States and of companies in the United States. Normally, the Fund invests the majority of its total assets in companies that pay dividends or otherwise seek to return capital to shareholders, such as by repurchasing their shares.

The Fund may invest up to 20% of its total assets in companies located in emerging (less developed) markets. Under normal circumstances, the Fund will invest at least 40% of its total assets in companies located in a number of developed countries outside the United States. The Fund is not required to allocate its investments in any specific percentages in any particular countries. The Investment Manager determines the country where a company is located, and thus whether a company is located in a developed country, outside the United States or in an emerging market, by referring to: its stock exchange listing; where it is registered, organized or incorporated; where its headquarters are located; its MSCI Country Classification; where it derives at least 50% of its revenues or profits from goods produced or sold, investments made, or services performed; or where at least 50% of its assets are located. These categories are designed to identify investments that are tied economically to, and subject to the risks of, investing internationally or in emerging markets. The Fund considers a country to be an emerging market if the country is included in the MSCI Emerging Markets Index.

Please see the Prospectus and Supplement for more information. Please contact Marketing@causewaycap.com for a Fund Application.

Nav*
$ 12.45
Inception
August 13, 2015
ISIN
IE00BWT3P530
Benchmark
MSCI ACWI
Minimum investment
$1,000,000
Total expense ratio
0.86%
*As of December 13, 2019

Strategy overview

The portfolio managers discuss our Global 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

QTDYTD1 year3 yearsSince inception
Fund6.7%16.6%6.0%7.5%4.7%
MSCI ACWI4.1%17.3%9.0%9.0%7.2%
QTDYTD1 year3 yearsSince inception
Fund6.7%16.6%6.0%7.5%4.7%
MSCI ACWI4.1%17.3%9.0%9.0%7.2%
201820172016
Fund-11.1%17.8%7.7%
MSCI ACWI-8.7%22.4%7.5%
201820172016
Fund-11.1%17.8%7.7%
MSCI ACWI-8.7%22.4%7.5%

Portfolio (as of November 30, 2019)

Benchmark:
Asset Allocation
Fund
Stocks97.3%
Cash2.7%
Fund Characteristics
FundBenchmark
Holdings 51 3059
Weighted avg. market cap (US $MM)$84,036$155,410
FY2 price/earnings11.715.6
Price/book value1.42.4
Net assets$1,527,292.26-
TOP 10 HOLDINGS
Security Country Percent
Volkswagen AGGermany4.2%
Takeda Pharmaceutical Co., Ltd.Japan4.0%
BASF SEGermany3.5%
UniCredit S.p.A.Italy3.4%
Sabre Corp.United States3.0%
ABB Ltd.Switzerland2.9%
SYNNEX Corp.United States2.9%
China Mobile Ltd.China2.8%
British American Tobacco plcUnited Kingdom2.7%
Samsung Electronics Co., Ltd.South Korea2.6%

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
Industrials17.2%10.5%
Information Technology16.8%16.9%
Financials13.4%16.7%
Communication Services12.2%8.8%
Health Care10.6%11.8%
Energy9.0%5.1%
Materials7.1%4.7%
Consumer Discretionary5.0%10.8%
Utilities3.2%3.3%
Consumer Staples2.7%8.2%
Real Estate0.0%3.3%
TOP 10 COUNTRIES
Country Strategy Benchmark
United States34.2%55.9%
United Kingdom17.7%4.7%
Germany11.7%2.6%
Japan10.5%7.3%
China5.0%4.0%
Switzerland4.6%2.7%
South Korea4.6%1.4%
Italy3.4%0.7%
Netherlands2.4%1.2%
France2.0%3.4%
Regional Allocation
  • Europe – other 41.8%
  • North America 35.4%
  • Pacific 10.5%
  • Emerging Asia 9.6%

Commentary (As of October 31, 2019)

Highlights

  • Developed market equities rose during the month amid signs of easing geopolitical uncertainties and continued dovish stances from global central banks.
  • With the European Central Bank apparently intending to continue negative interest rates and asset purchases until reaching a 2% inflation target, European governments will likely need to increase fiscal stimulus to thwart further deterioration in economic conditions.
  • The resurgence of value and cyclicality over growth and momentum continued for a second consecutive month in October. This value upturn does not surprise us given the historically wide discount of cyclical stock valuations compared to more defensive stocks that occurred this year through the end of August.

Portfolio Attribution

Causeway Global Value UCITS Fund - USD share class ("Fund") outperformed the Index during the month, due primarily to currency allocation (a byproduct of our bottom-up stock selection process). Holdings in the banks, automobiles & components, materials, insurance, and utilities industry groups contributed to performance compared to the Index. Fund holdings in the media & entertainment and telecommunication services industry groups, along with an overweight position in the energy industry group and an underweight position in the semiconductors & semi equipment and health care equipment & services industry groups, detracted from relative performance. The top contributor to return was automobile manufacturer, Volkswagen AG (Germany). Other notable contributors included banking & financial services company, Barclays Plc (United Kingdom), diversified chemicals manufacturer, BASF SE (Germany), life insurer, Prudential Plc (United Kingdom), and banking & financial services company, UniCredit S.p.A. (Italy). The largest detractor was oil & natural gas producer, Encana (Canada). Additional notable detractors included global entertainment content company, Viacom, Inc. (United States), jet engine manufacturer, Rolls-Royce Holdings Plc (United Kingdom), British American Tobacco plc (United Kingdom), and major passenger railway operator, East Japan Railway Co. (Japan).

Investment Outlook

The resurgence of value and cyclicality over growth and momentum continued for a second consecutive month in October. As global bond yields have risen from their August 2019 lows, economically sensitive stocks generally recovered in price and valuation multiples. This value upturn does not surprise us given the historically wide discount of cyclical stock valuations compared to more defensive stocks that occurred this year through the end of August. However, to lessen our dependence on a sustained upturn in the value cycle, we continue to make portfolio company managements accountable to achieve their operational restructuring goals. We expect managements to boost profitability and free cash flow, ideally with the intent to return generous amounts of that surplus cash to shareholders. Dividends remain an important component of total return and pay shareholders to wait for valuations to improve. We consider dividend income particularly attractive in the current ultra-low interest rate environment.

Effective October 1, 2018, the Global Value Fund’s benchmark changed from the MSCI World Index (Gross) to the MSCI ACWI Index (Gross). Causeway believes that the MSCI ACWI Index (Gross), which includes emerging as well as developed markets, better represents the types of securities in which the strategy invests. 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.

Documents

Fund information: