Combining our time-tested abilities in developed and emerging international markets

The Fund invests primarily in companies both in developed markets excluding the United States (the “international value portfolio”) and in emerging markets (the “emerging markets portfolio”). Causeway allocates substantially all of the Fund’s assets between the international value portfolio and the emerging markets portfolio using a proprietary asset allocation model.

International Value Portfolio: The international value portfolio consists primarily of common stocks of companies located in developed countries outside the US. Normally, the majority of this portfolio invests in companies that pay dividends or repurchase their shares. The international value portfolio may also invest in companies located in emerging (less developed) markets.

Emerging Markets Portfolio: The emerging markets portfolio is normally invested in equity securities of companies located in emerging (less developed) markets and other investments that are tied economically to emerging markets. Generally, these investments include common stock, preferred and preference stock, American Depositary Receipts, European Depositary Receipts, Global Depositary Receipts, and exchange-traded funds that invest in emerging markets securities.

YTD Return*
$12.67, +0.05
December 31, 2009
Minimum Investment
Sales Charge
Net Expense Ratio
*As of June 10, 2019

Strategy overview

The portfolio managers discuss our International Opportunities strategy.

Portfolio managers

Chief Executive Officer
Fundamental Portfolio Manager
Head of Fundamental Research
Fundamental Portfolio Manager
Fundamental Portfolio Manager
Fundamental Portfolio Manager
Fundamental Portfolio Manager
Fundamental Portfolio Manager
Fundamental Portfolio Manager
Head of Quantitative Research
Quantitative Portfolio Manager
Quantitative Portfolio Manager
Quantitative Portfolio Manager
Fundamental Portfolio Manager


QTD YTD 1 year3 years5 years Since inception
Fund -3.9%6.0%-10.5%4.9%0.0%4.6%
MSCI ACWI ex US -2.7%7.5%-5.8%7.2%1.8%4.4%
QTD YTD 1 year3 years5 years Since inception
Fund -3.9%6.0%-10.5%4.9%0.0%4.6%
MSCI ACWI ex US -2.7%7.5%-5.8%7.2%1.8%4.4%
QTD YTD 1 year3 years5 years Since inception
Fund 10.3%10.3%-8.1%6.9%1.4%5.2%
MSCI ACWI ex US 10.4%10.4%-3.7%8.6%3.0%4.8%
QTD YTD 1 year3 years5 years Since inception
Fund 10.3%10.3%-8.1%6.9%1.4%5.2%
MSCI ACWI ex US 10.4%10.4%-3.7%8.6%3.0%4.8%
Fund -18.4%29.6%2.0%-6.1%-3.7%17.8%24.6%-12.6%15.4%
MSCI ACWI ex US -13.8%27.8%5.0%-5.3%-3.4%15.8%17.4%-13.3%11.6%

Portfolio (as of May 31, 2019)

Benchmark: MSCI ACWI ex US
Asset Allocation
Stocks 97.2%
Cash 2.8%
Fund Characteristics
Fund Benchmark
No. of holdings 204 2210
Weighted avg. market cap (US $MM) $50,239 $48,514
FY2 price/earnings 9.3 11.9
Price/book value 1.2 1.6
Net assets $177,858,932 -
Security Country Percent
Volkswagen AG Germany 3.9
Takeda Pharmaceutical Co., Ltd. Japan 3.1
Linde Plc Germany 3.1
KDDI Corp. Japan 2.7
Prudential Plc United Kingdom 2.6
ABB Ltd. Switzerland 2.4
UniCredit S.p.A. Italy 2.4
British American Tobacco plc United Kingdom 2.4
AstraZeneca Plc United Kingdom 2.2
BASF SE Germany 2.2

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 Fund Benchmark
Financials 21.7% 22.0%
Industrials 15.0% 11.8%
Materials 10.3% 7.5%
Energy 9.7% 7.3%
Health Care 9.5% 8.2%
Consumer Discretionary 8.7% 11.0%
Information Technology 7.6% 8.4%
Communication Services 6.4% 7.0%
Consumer Staples 5.3% 10.1%
Utilities 2.2% 3.3%
Real Estate 0.8% 3.3%
Country Fund Benchmark
United Kingdom 26.8% 11.5%
Japan 11.6% 16.1%
Germany 11.4% 5.8%
China 8.0% 8.6%
Switzerland 7.2% 6.0%
Canada 5.5% 6.8%
South Korea 3.7% 3.4%
France 3.7% 7.6%
India 3.0% 2.4%
Taiwan 2.9% 3.0%
Regional Allocation
  • Europe – other 53.3%
  • Emerging Asia 18.2%
  • Pacific 12.4%
  • North America 7.6%
  • Emerging Latin America 3.0%
  • Emerging Europe, Middle East, Africa 2.7%

Commentary (As of April 30, 2019)


  • 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

Causeway International Opportunities Fund ("Fund") underperformed the Index during the month, due primarily to stock selection. Fund holdings in the banks, capital goods, telecommunication services, and materials industry groups, along with an underweight position in the household & personal products industry group, detracted from relative performance. Holdings in the food beverage & tobacco, pharmaceuticals & biotechnology, software & services, and transportation industry groups, as well as an underweight position in the diversified financials industry group, 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 jet engine manufacturer, Rolls-Royce Holdings Plc (United Kingdom). The top contributor to return was British American Tobacco plc (United Kingdom). Other notable contributors included pharmaceutical & consumer healthcare products producer, Novartis AG (Switzerland), TakedaPharmaceutical Co., Ltd. (Japan), business software & services provider, SAP SE (Germany), and online services company, Tencent Holdings Ltd. (China).

We use a proprietary quantitative equity allocation model that assists the portfolio managers in determining the weight of emerging versus developed markets in the Fund. Our allocation relative to the weight of emerging markets in the Index is currently underweight. We identify five primary factors as most indicative of the ideal allocation target: valuation, quality, earnings growth, macroeconomic, and risk aversion. Valuation is currently negative for emerging markets in our model. Our quality metrics, which include such measures as profit margins and return on equity, are neutral. Our earnings growth and macroeconomic factors are negative for emerging markets. Lastly, our risk aversion factor concludes that investors’ appetite for risk is neutral.

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, developed market 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.

In the emerging markets portion of the Fund, our momentum factor has continued to lag this year after underperforming in 2018. We acknowledge that the momentum factor’s performance can be volatile and the current environment may be particularly challenging for this approach. In the late stages of a market and economic cycle characterized by uncertain Fed policy, US-China trade tensions, and Brexit-related issues, trends may be fleeting and overwhelmed by investors’ desires to harvest short-term profits. This has presented a difficult environment for the momentum factor. 

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. Investing in ETFs is subject to the risks of the underlying funds. Investments in smaller companies typically exhibit higher volatility. Asset allocation may not protect against market risk.


Dividends Short-term capital gains Long-term capital gains
2018 $0.2904 $0.0000 $0.0327
2017 $0.2145 $0.0000 $0.0000
2016 $0.4494 $0.0000 $0.0000
2015 $0.1623 $0.0107 $0.0199
2014 $0.0000 $0.0000 $0.4943
2013 $0.1266 $0.0001 $0.0739
2012 $0.2451 $0.0000 $0.0190
2011 $0.2756 $0.0000 $0.0303
2010 $0.1858 $0.0000 $0.1712

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).


Fund information: