Seeking value primarily in developed markets worldwide

The Fund invests primarily in common stocks of companies in developed countries located outside the US and of companies in the US. Normally, the Fund invests the majority of its total assets in companies that pay dividends or repurchase 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 countries outside the US. The Fund’s investment objective is to seek long-term growth of capital and income.

YTD Return*
+8.19%
Nav*
$9.78, +0.04
Inception
April 29, 2008
Cusip
14949P307
Benchmark
MSCI ACWI
Minimum Investment
$1,000,000
Sales Charge
None
Net Expense Ratio
1.05%
*As of June 10, 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

QTD YTD 1 year3 years5 years10 years Since inception
Fund -6.3%3.7%-7.2%4.6%1.9%9.9%4.0%
MSCI ACWI -2.6%9.4%-0.8%9.7%5.8%10.0%5.1%
QTD YTD 1 year3 years5 years10 years Since inception
Fund -6.3%3.7%-7.2%4.6%1.9%9.9%4.0%
MSCI ACWI -2.6%9.4%-0.8%9.7%5.8%10.0%5.1%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 10.6%10.6%1.4%8.4%3.7%13.5%4.7%
MSCI ACWI 12.3%12.3%3.2%11.3%7.0%12.6%5.4%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 10.6%10.6%1.4%8.4%3.7%13.5%4.7%
MSCI ACWI 12.3%12.3%3.2%11.3%7.0%12.6%5.4%
2018201720162015201420132012201120102009
Fund -11.1%17.9%7.7%-6.3%5.4%29.2%16.5%-1.3%18.5%40.1%
MSCI ACWI -8.2%23.1%8.2%-0.3%5.5%27.4%16.5%-5.0%12.3%30.8%
Fund
MSCI ACWI
2018201720162015201420132012201120102009
-11.1%17.9%7.7%-6.3%5.4%29.2%16.5%-1.3%18.5%40.1%
-8.2%23.1%8.2%-0.3%5.5%27.4%16.5%-5.0%12.3%30.8%

Portfolio (as of May 31, 2019)

Benchmark: MSCI ACWI
Asset Allocation
Fund
Stocks 99.4%
Cash 0.6%
Fund Characteristics
Fund Benchmark
No. of holdings 50 2851
Weighted avg. market cap (US $MM) $70,419 $125,986
FY2 price/earnings 10.1 13.5
Price/book value 1.3 2.2
Net assets $82,752,316 -
TOP 10 HOLDINGS
Security Country Percent
Volkswagen AG Germany 3.7%
Takeda Pharmaceutical Co., Ltd. Japan 3.6%
UniCredit S.p.A. Italy 3.1%
China Mobile Ltd. China 3.1%
Micro Focus International Plc United Kingdom 2.9%
Sabre Corp. United States 2.9%
Alaska Air Group, Inc. United States 2.9%
Linde Plc United States 2.8%
ABB Ltd. Switzerland 2.7%
BASF SE Germany 2.7%

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 16.0% 15.7%
Financials 15.2% 17.0%
Industrials 15.0% 10.5%
Communication Services 12.3% 8.9%
Health Care 10.8% 11.4%
Materials 9.0% 4.8%
Energy 8.6% 5.9%
Consumer Discretionary 4.3% 10.7%
Consumer Staples 4.2% 8.5%
Utilities 4.1% 3.3%
Real Estate 0.0% 3.3%
TOP 10 COUNTRIES
Country Fund Benchmark
United States 36.1% 55.0%
United Kingdom 21.6% 5.2%
Japan 10.3% 7.2%
Germany 6.9% 2.6%
China 6.0% 3.9%
Switzerland 4.3% 2.7%
Canada 3.6% 3.0%
Italy 3.3% 0.7%
South Korea 2.3% 1.5%
Netherlands 2.2% 1.1%
Regional Allocation
  • North America 40.6%
  • Europe – other 37.3%
  • Pacific 11.5%
  • Emerging Asia 9.7%
  • Emerging Europe, Middle East, Africa 0.3%

Commentary (As of April 30, 2019)

Highlights

  • Increasingly dovish commentary from the US Federal Reserve and the European Central Bank, along with progress on US-China trade negotiations, supported equity markets in March.

Portfolio attribution

Increasingly dovish commentary from the US Federal Reserve (“Fed”) and the European Central Bank ("ECB"), along with progress on US-China trade negotiations, supported equity markets in March. The top performing markets in our investable universe were India, New Zealand, Colombia, Denmark, and Belgium. The worst performing markets were Turkey, Chile, Brazil, South Korea, and Austria. The best performing sectors in the MSCI ACWI Index (“Index”) were real estate, consumer staples, and information technology. The worst performing sectors were financials, industrials, and health care.

Causeway Global Value Fund ("Fund") underperformed the Index during the month, due primarily to stock selection. Fund holdings in the telecommunication services, banks, automobiles & components, energy, and technology hardware & equipment industry groups detracted from relative performance. Holdings in the food beverage & tobacco, pharmaceuticals & biotechnology, and health care equipment & services industry groups, as well as an underweight position in the diversified financials and food & staples retailing industry groups, offset some of the underperformance. The largest detractor was automobile manufacturer, Volkswagen AG (Germany). Additional notable detractors included banking & financial services company, Barclays Plc (United Kingdom), banking & financial services company, UniCredit S.p.A. (Italy), telecommunication services provider, KDDI Corp. (Japan), and passenger & cargo airline, Alaska Air Group, Inc. (United States). The top contributor to return was British American Tobacco plc (United Kingdom). Other notable contributors included enterprise infrastructure software company, Micro Focus International Plc (United Kingdom), Takeda Pharmaceutical Co., Ltd. (Japan), pharmaceutical & consumer healthcare products producer, Novartis AG (Switzerland), and snack & confectionary producer, Mondelez International, Inc. (United States).

Investment outlook

With abundant liquidity underpinning the demand for investable assets, long duration equities responded favorably to the dovish policy indications from the Fed. Investors appear indifferent to valuation, focusing instead on growth and the promise of earnings and cash flow further into the future. Money remains cheap, facilitating more public and private sector financial leverage. As investors are willing to pay sizable valuation multiples for growth, companies that must restructure operationally to expand earnings are having a tough time attracting investor interest. We are most interested in undervalued stocks, often in cyclical industries, with managements committed to streamlining operations. We prefer companies that reward shareholders with generous dividend payments and/or share buybacks. We believe these efforts to boost profitability through cost savings and revenue enhancements should position these companies well in times of leaner global growth. We recognize style investing is cyclical and believe the value characteristics currently embedded in the Fund should prove effective if growth does not meet lofty market expectations.

 

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. A company may reduce or eliminate its dividend, causing losses to a fund.

Distributions

Dividends Short-term capital gains Long-term capital gains
2018 $0.1956 $0.2508 $1.2062
2017 $0.2363 $0.4167 $0.1330
2016 $0.1493 $0.0000 $0.0000
2015 $0.1251 $0.0000 $0.2089
2014 $0.2232 $0.3781 $0.5989
2013 $0.1162 $0.2969 $0.1573
2012 $0.0968 $0.0094 $0.0380
2011 $0.0959 $0.0000 $0.0000
2010 $0.0800 $0.0000 $0.0000
2009 $0.0793 $0.0000 $0.0000
2008 $0.1306 $0.0500 $0.0000

Distributions are per share. Distribution amounts are based on gains and losses realized and income earned by the Fund through October 31 (or earlier under certain circumstances).

Documents

Fund information:

Forms: