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*
$ 12.61
Inception
August 13, 2015
ISIN
IE00BWT3P530
Benchmark
MSCI ACWI
Minimum investment
$1,000,000
Total expense ratio
0.86%
*As of January 24, 2020

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
Fund10.9%21.3%21.3%8.3%5.6%
MSCI ACWI7.8%21.5%21.5%9.2%8.0%
QTDYTD1 year3 yearsSince inception
Fund10.9%21.3%21.3%8.3%5.6%
MSCI ACWI7.8%21.5%21.5%9.2%8.0%
201820172016
Fund-11.1%17.8%7.7%
MSCI ACWI-9.4%24.0%7.9%
201820172016
Fund-11.1%17.8%7.7%
MSCI ACWI-9.4%24.0%7.9%

Portfolio (as of December 31, 2019)

Benchmark:
Asset Allocation
Fund
Stocks97.4%
Cash2.6%
Fund Characteristics
FundBenchmark
Holdings 51 3049
Weighted avg. market cap (US $MM)$87,908$166,138
FY2 price/earnings12.216.1
Price/book value1.52.4
Net assets$1,515,315.18-
TOP 10 HOLDINGS
Security Country Percent
Volkswagen AGGermany4.2%
Takeda Pharmaceutical Co., Ltd.Japan3.6%
UniCredit S.p.A.Italy3.4%
BASF SEGermany3.3%
China Mobile Ltd.China3.1%
ABB Ltd.Switzerland3.1%
Sabre Corp.United States2.9%
British American Tobacco plcUnited Kingdom2.8%
SYNNEX Corp.United States2.8%
Samsung Electronics Co., Ltd.South Korea2.8%

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 Technology16.5%17.2%
Industrials16.2%10.3%
Financials12.9%16.7%
Communication Services12.4%8.7%
Health Care10.8%11.8%
Energy9.3%5.2%
Materials8.0%4.8%
Consumer Discretionary5.0%10.8%
Utilities3.4%3.3%
Consumer Staples2.8%8.0%
Real Estate0.0%3.2%
TOP 10 COUNTRIES
Country Strategy Benchmark
United States35.5%55.6%
United Kingdom16.4%4.8%
Germany11.6%2.5%
Japan8.6%7.2%
China5.4%4.2%
Switzerland5.0%2.7%
South Korea4.7%1.4%
Italy3.4%0.7%
France2.8%3.3%
Netherlands2.4%1.2%
Regional Allocation
  • Europe – other 41.7%
  • North America 37.0%
  • Emerging Asia 10.1%
  • Pacific 8.6%

Commentary (As of November 30, 2019)

Highlights

  • Equities largely continued to rally in November as suggestions of a potential trade deal between the US and China may have buoyed investor sentiment.
  • New European Central Bank President Christine Lagarde has addressed geopolitical risks in recent speeches and indicated steps governments can take to boost the effectiveness of monetary policy. We believe fiscal stimulus is the logical next step for European economies, with low-to-no borrowing costs and aging populations struggling to save sufficiently for retirement.
  • Without the specter of major economic slowing to weigh on revenue growth, cyclical stocks have fared well from late summer. We focus our research efforts on companies improving free cash flows and returning capital to shareholders via dividends and share buybacks, paying shareholders to wait for enhanced earnings from operational restructuring.

Portfolio Attribution

Causeway Global Value UCITS Fund ("Fund") outperformed the Index during the month, due primarily to stock selection. Holdings in the banks, food beverage & tobacco, media & entertainment, and capital goods industry groups, as well as an underweight position in the real estate industry group, contributed to performance compared to the Index. Fund holdings in the software & services, technology hardware & equipment, and transportation industry groups, along with an overweight position in the telecommunication services industry group and an underweight position in the health care equipment & services industry group, detracted from relative performance. The top contributor to return was Takeda Pharmaceutical Co., Ltd. (Japan). Other notable contributors included banking & financial services company, UniCredit S.p.A. (Italy), British American Tobacco plc (United Kingdom), internet services provider, Baidu - ADR (China), and industrial conglomerate, Siemens AG (Germany). The largest detractor was mobile telecommunications operator, China Mobile Ltd. (China). Additional notable detractors included travel & tourism technology company, Sabre Corp. (United States), robotics manufacturer, FANUC Corp. (Japan), oil refiner, Marathon Petroleum Corp. (United States), and electronic equipment manufacturer, Samsung Electronics Co., Ltd. (South Korea).

Investment Outlook

Since the end of August 2019, the portfolio has generally enjoyed a re-rating upward in valuation coincident with the upswing in global sovereign bond yields from their 2019 lows. This change in sentiment by bond markets indicates a waning demand for risk-free bonds. With central governments globally using monetary and fiscal tools to forestall recession (and economic cycles), bond prices have fallen and yields have risen. Without the specter of major economic slowing to weigh on revenue growth, cyclical stocks have fared well from late summer. We focus our research efforts on companies improving free cash flows and returning capital to shareholders via dividends and share buybacks, paying shareholders to wait for enhanced earnings from operational restructuring. As investors continue to crowd into defensive trades, we strive to identify companies that can execute on restructuring plans and position themselves for an improvement in 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: