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*
£13.32
Inception
February 02, 2021
ISIN
IE00BJP5PN06
Benchmark
MSCIACWI
Minimum investment
£1,000,000
Total expense ratio
0.67%
*As of September 11, 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 2.2%11.8%
MSCI ACWI in GBP 1.2%6.7%
QTD Since inception
Fund 2.2%11.8%
MSCI ACWI in GBP 1.2%6.7%
QTD Since inception
Fund 1.9%11.6%
MSCI ACWI in GBP 3.4%6.7%
QTD Since inception
Fund 1.9%11.6%
MSCI ACWI in GBP 3.4%6.7%

Portfolio (as of August 31, 2023)

Benchmark: MSCI ACWI in GBP
Asset Allocation
Fund
Stocks 98.3%
Cash 1.7%
Fund Characteristics
Fund Benchmark
Holdings 54 2934
Weighted avg. market cap (GBP £MM) £97,934 £398,523
FY2 price/earnings 11.8 15.4
Price/book value 1.8 2.8
Net assets £4,511,509.71 -
TOP 10 HOLDINGS
Security Country Percent
Rolls-Royce Holdings Plc United Kingdom 6.4%
Samsung Electronics Co., Ltd. South Korea 3.7%
Alphabet, Inc. United States 3.2%
SAP SE Germany 3.0%
Enel SpA Italy 2.8%
BP Plc United Kingdom 2.6%
Genpact Ltd. United States 2.5%
The Walt Disney Co. United States 2.5%
Murata Manufacturing Co. Ltd. Japan 2.4%
TD SYNNEX Corp. United States 2.4%

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 17.2% 22.1%
Industrials 15.5% 10.4%
Financials 15.0% 15.4%
Health Care 13.2% 11.8%
Consumer Staples 8.4% 7.2%
Communication Services 8.1% 7.5%
Energy 6.2% 4.9%
Materials 4.9% 4.5%
Utilities 4.7% 2.6%
Consumer Discretionary 3.8% 11.3%
Real Estate 1.5% 2.3%
TOP 10 COUNTRIES
Country Strategy Benchmark
United States 37.7% 62.7%
United Kingdom 21.5% 3.5%
France 11.2% 3.0%
South Korea 5.5% 1.3%
Italy 5.0% 0.6%
Japan 4.5% 5.5%
Germany 3.9% 2.1%
Netherlands 3.9% 1.1%
Switzerland 2.2% 2.5%
Spain 1.3% 0.6%
Regional Allocation
  • Europe – other 49.0%
  • North America 37.7%
  • Emerging Asia 6.5%
  • Pacific 4.5%
  • Emerging Latin America 0.6%

Commentary (As of July 31, 2023)

Highlights

  • Global equity markets marched higher in July, fueled by waning excesses of liquidity in the global financial system.
  • The Federal Reserve’s rate-hiking cycle may be ending, but the lagged effect of sharp rate rises, an inverted yield curve, and negative money supply growth should weigh on the US economy in 2024. Higher borrowing costs for governments and corporations create spending headwinds for economic objectives.
  • After one of the longest cycles on record of US stock market outperformance versus developed non-US, the US valuation premium (measured by relative price-to-earnings ratios) is unusually high, over two standard deviations above the long-term average. We believe this stretched US premium—and greater emphasis on valuation—makes a reversion to the norm and relative outperformance of undervalued international equities increasingly likely.

Portfolio Attribution

The Causeway Global Value UCITS Fund ("Fund") performed in-line with the Index during the month, due to offsetting currency, allocation, and stock selection effects. Fund holdings in the capital goods, pharmaceuticals & biotechnology, and materials industry groups contributed to relative performance. Holdings in the transportation, health care equipment & services, and energy industry groups detracted from relative performance. The top contributor to return was jet engine manufacturer, Rolls-Royce Holdings Plc (United Kingdom). Other notable contributors included technology conglomerate, Alphabet, Inc. (United States), and paper & packaging solutions company, WestRock (United States). The largest detractor was robotics manufacturer, FANUC Corp. (Japan). Additional notable detractors included low-budget airline, Ryanair Holdings Plc -ADR (Ireland), and business process outsourcing services provider, Genpact Ltd. (United States).

Economic Outlook

The Federal Reserve’s rate-hiking cycle may be ending, but the lagged effect of sharp rate rises, an inverted yield curve, and negative money supply growth should weigh on the US economy in 2024. Higher borrowing costs for governments and corporations create spending headwinds for economic objectives. Monetary tightening may be felt more deeply in Europe, given its greater credit demand sensitivity to variable interest rates (including through mortgages). Recession looms in the UK, where stubborn inflation has prompted unrelenting rate hikes. The Bank of Japan modestly relaxed its yield curve control, allowing yields to rise to 1% (from a prior ceiling of 0.5%), but appears committed to ultra-loose monetary policy for the near term. In China, policy makers announced measures to boost production of consumer goods and showed support for the nation’s ailing property market.

Investment Outlook

After one of the longest cycles on record of US stock market outperformance versus developed non-US, the US valuation premium (measured by relative-price-to-earnings ratios) is unusually high, over two standard deviations above the long-term average. We believe this stretched US premium-and greater emphasis on valuation-makes a reversion to the norm and relative outperformance of undervalued international equities increasingly likely.

With interest rates remaining higher for longer, valuation has become relevant again, an investing environment we believe is conducive to Causeway’s fundamental stock selection process. Passive indices emphasize past performers and may be especially vulnerable to compression of inflated valuation multiples. We focus instead on stocks that have underperformed peers, exhibiting valuations we believe are undemanding. Corporate earnings, in aggregate, should decline as economies slow. We seek companies engaged in operational restructuring that can improve earnings and cash flow through cost cutting and efficiency measures. We are especially interested in identifying companies we believe are capable of returning increasing quantities of capital to shareholders (via dividends and share buybacks), to maximize performance.

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: