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 25% 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 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 [email protected] for a Fund Application.

Nav*
£13.02
Inception
February 02, 2021
ISIN
IE00BJP5PN06
Benchmark
MSCIACWI
Minimum investment
£1,000,000
Total expense ratio
0.67%
*As of June 05, 2023
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Strategy overview

The portfolio managers discuss our Global 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 Since inception
Fund -0.9%10.7%
MSCI ACWI in GBP 0.2%5.5%
QTD Since inception
Fund -0.9%10.7%
MSCI ACWI in GBP 0.2%5.5%
QTD Since inception
Fund 11.4%12.1%
MSCI ACWI in GBP 4.5%5.8%
QTD Since inception
Fund 11.4%12.1%
MSCI ACWI in GBP 4.5%5.8%

Portfolio (as of April 30, 2023)

Benchmark: MSCI ACWI in GBP
Asset Allocation
Fund
Stocks 99.1%
Cash 0.9%
Fund Characteristics
Fund Benchmark
Holdings 53 2884
Weighted avg. market cap (GBP £MM) £92,468 £333,637
FY2 price/earnings 12.6 14.7
Price/book value 1.9 2.6
Net assets £3,313,449.21 -
TOP 10 HOLDINGS
Security Country Percent
Rolls-Royce Holdings Plc United Kingdom 4.8%
Samsung Electronics Co., Ltd. South Korea 3.6%
Enel SpA Italy 3.3%
Alphabet, Inc. United States 3.3%
SAP SE Germany 2.9%
The Walt Disney Co. United States 2.6%
Ryanair Holdings Plc - ADR Ireland 2.6%
Fiserv, Inc. United States 2.5%
Meta Platforms, Inc. United States 2.5%
UniCredit S.p.A. Italy 2.5%

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
Information Technology 21.4% 22.0%
Industrials 17.9% 10.1%
Health Care 11.8% 12.6%
Financials 11.4% 14.1%
Communication Services 9.2% 7.3%
Consumer Staples 8.2% 7.6%
Materials 7.3% 4.8%
Utilities 5.4% 3.0%
Consumer Discretionary 4.3% 10.9%
Real Estate 1.3% 2.4%
Energy 0.9% 5.1%
TOP 10 COUNTRIES
Country Strategy Benchmark
United States 34.8% 60.5%
United Kingdom 16.0% 3.9%
France 11.2% 3.3%
Japan 7.1% 5.4%
Italy 5.7% 0.6%
South Korea 5.0% 1.3%
Switzerland 4.2% 2.6%
Netherlands 4.1% 1.1%
Germany 4.0% 2.2%
Ireland 2.6% 0.2%
Regional Allocation
  • Europe – other 49.1%
  • North America 36.5%
  • Pacific 7.1%
  • Emerging Asia 5.8%
  • Emerging Latin America 0.5%

Commentary (As of April 30, 2023)

Highlights

  • Developed equity markets continued to rise in April, with international markets outpacing the US.
  • The US economy may have already entered a stagflation period, likely exacerbated by tightening credit conditions and price rises embedded in wages, goods, and services. Despite headline-generating layoff announcements, payroll figures have been resilient, and the nationwide unemployment rate remains very low at 3.4%.
  • Amid signs of slowing economic activity, we seek to identify economically resilient companies at attractive valuations and avoid companies at cyclical earnings peaks. Consistent across industries is our preference for companies we see generating high levels of free cash flow and for managements willing to return excess capital to shareholders.

Portfolio Attribution

The Causeway Global Value UCITS Fund ("Fund"), on a net asset value basis, outperformed the Index during the month, due primarily to stock selection. On a gross return basis, Fund holdings in the utilities and banks industry groups, as well as an underweight position in the semiconductors & semi equipment industry group, contributed to relative performance. Holdings in the capital goods, software & services, and technology hardware & equipment industry groups offset some of the outperformance compared to the Index. The top contributor to return was electric, gas & renewables power generation & distribution company, Enel SpA (Italy). Other notable contributors included banking & financial services company, UniCredit S.p.A. (Italy), and social media giant, Meta Platforms, Inc. (United States). The largest detractor was business services provider, Concentrix Corp. (United States). Additional notable detractors included HVAC manufacturer, Carrier Global Corp. (United States), and rolling stock, signaling, & services provider for the rail industry, Alstom SA (France).

Economic Outlook

The US economy may have already entered a stagflation period, likely exacerbated by tightening credit conditions and price rises embedded in wages, goods, and services. Despite headline-generating layoff announcements, payroll figures have been resilient, and the nationwide unemployment rate remains very low at 3.4%. Employers who suffered labor shortages during the pandemic may be reluctant to reduce staff. Data suggests the European Central Bank may have flexibility to slow its tightening policy. Although headline Eurozone inflation rose to 7% in April, the rate of core inflation—which removes the volatile food and energy price categories—declined for the first time in ten months, to 5.6%. In both the US and Europe, credit appears to be contracting after recent banking system shocks. As Europe and the US potentially near the end of their rate hike cycles, the Bank of Japan has yet to begin. We expect the Japanese central bank to continue its policy of monetary easing, conducted through yield curve control.

After a robust reopening from Covid lockdowns, Chinese manufacturing contracted in April; China’s official purchasing managers’ index (“PMI”) declined to 49.2. Our fundamental research corroborates this reading. In the materials sector, where China is the world’s largest customer and a critical link in supply chains, companies doing business with China are reporting a weaker recovery than past economic accelerations. Across developed markets, industrial production is declining from peak levels as companies work through backlogs accrued during the pandemic. Our team continues to value and vet industrials companies through our research process; we should be prepared to build exposure to select firms on share price pullbacks.

Investment Outlook

Amid signs of slowing economic activity, we seek to identify economically resilient companies at attractive valuations and avoid companies at cyclical earnings peaks. Consistent across industries is our preference for companies we see generating high levels of free cash flow and for managements willing to return excess capital to shareholders. Given the likelihood of recession, we want to see managements apply conservative financial approaches: paying down leverage, controlling expenses, and abstaining from shareholder-dilutive acquisitions. Although portfolio weights in more economically insulated sectors—consumer staples and utilities, for example—are toward the upper bounds of their historical ranges, we remain flexible in our positioning and aim to continue to exploit the full global equity opportunity set.

An ongoing significant valuation discount or “margin of safety” may support international equities’ continued outperformance versus the US as investors, anticipating multiple compression, grow increasingly wary of expensive stocks. Developed international stocks have only been cheaper than they are today for about 5% of the past fifty years, as measured by the nearly two standard deviation discount of the MSCI World ex-USA Index trailing price-to-earnings multiple versus the MSCI USA Index.

By year’s end, we expect some of the most significant returns in excess of the Index should be delivered by companies able to withstand the effects of credit contraction, manage cost pressures, and improve productivity. We believe financial strength remains essential, especially in a higher-for-longer interest rate environment. Many of our portfolio companies are engaged in operational restructuring to improve earnings and cash flow. This implies these companies may deliver good news on a recovery in their growth, even as economic conditions remain sluggish. To identify investment candidates, our analysts are collaborating across their sectors to identify attractively valued portfolio candidates. Recent examples include Causeway consumer, industrials, and chemicals analysts valuing an ingredients company; and materials analysts studying a rare earth elements producer with input from automobile and technology analysts and members of our China research subsidiary. We believe understanding a company from multiple industry perspectives provides depth and rigor essential to determining its valuation.

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.

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