Advisor Login

Forgot Password?

Don't have an account?

An email has been sent to you with further instructions on how to reset your password.Please make sure to check your spam folder just in case.

Please reset your password with the form below.

Get instant access by filling out this form.

Emerging Markets Fund

Diversified exposure to emerging markets, capturing value and growth

NAV (as of 14 Aug 2018)

$12.69, +0.04

YTD

-10.44%

INCEPTION

30 Mar 2007

TICKER/CUSIP

CEMIX/149498107

Fact Sheet Prospectus

Fund Profile

The Fund normally invests at least 80% of its total assets 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 (“ETFs”) that invest in emerging markets securities.

The Investment Adviser uses a quantitative investment approach to purchase and sell investments for the Fund. The Investment Adviser’s proprietary computer model analyzes a variety of factors to assist in selecting securities. The model currently analyzes factors relating to valuation, earnings growth, technical indicators, macroeconomics, currency, countries and sectors.

Minimum Investment$1,000,000
Sales ChargeNone
Net Expense Ratio1.15%
Dividend FrequencyAnnual
Capital Gain FrequencyAnnual
Benchmark MSCI Emerging Markets

Performance

Fund Quarter to Date Year to Date 1 Year3 Year5 Year10 Year Since Inception
CEMIX 2.4%-6.6%2.8%7.5%5.2%4.1%4.7%
MSCI Emerging Markets 2.3%-4.4%4.7%9.3%5.6%3.2%4.3%
Fund Quarter to Date Year to Date 1 Year3 Year5 Year10 Year Since Inception
CEMIX -10.6%-8.8%6.8%4.1%5.1%3.1%4.5%
MSCI Emerging Markets -7.9%-6.5%8.6%6.0%5.4%2.6%4.1%

Portfolio

Asset Allocation as of 31 Jul 2018

Stocks 98.7%
Cash 1.3%

Characteristics as of 31 Jul 2018

Causeway MSCI Emerging Markets
No. of Holdings 146 1137
Wtd. Avg. Market Cap (Mn $US)$59,499$52,479
NTM Price/Earnings8.911.4
Price/Book Value1.51.7
NTM EPS Revision (Wtd. Avg)0.9-3.1

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. “Earnings-per-Share” is the portion of a company’s profit allocated to each outstanding share of common stock. “Earnings-per-Share year-over-year estimate growth (Next 12 Months)” is the average next-twelve-month earnings-per-share estimate from one year ago for an individual company compared with that estimate today; note that this calculation is done on a company by company basis and is aggregated through a weighted average based on the individual company’s weight in the corresponding index. Also note that this characteristic is supplied directly by MSCI.

SECTOR WEIGHTS as of 31 Jul 2018

Information Technology30.17%
Financials22.85%
Energy9.70%
Materials8.07%
Industrials7.20%
Consumer Discretionary5.24%
Consumer Staples3.16%
Equity Funds3.00%
Real Estate2.86%
Telecommunication Services2.71%
Utilities1.95%
Health Care1.78%

(VS. Benchmark)

Information Technology27.32%
Financials23.36%
Energy7.47%
Materials7.84%
Industrials5.26%
Consumer Discretionary9.38%
Consumer Staples6.67%
Equity Funds0.00%
Real Estate2.95%
Telecommunication Services4.28%
Utilities2.52%
Health Care2.95%
Information Technology
Financials
Energy
Materials
Industrials
Consumer Discretionary
Consumer Staples
Equity Funds
Real Estate
Telecommunication Services
Utilities
Health Care
Other

TOP 10 COUNTRIES as of 31 Jul 2018

China32.87%
South Korea16.36%
Taiwan10.57%
India9.90%
Brazil5.98%
Russia4.63%
Thailand3.81%
Multi-National Emerging (ETF)3.00%
Malaysia2.63%
South Africa2.57%
Mexico1.99%
Turkey1.28%
Poland0.74%
Peru0.68%
Saudi Arabia0.49%
United Arab Emirates0.44%
Indonesia0.41%
Czech Republic0.32%
Multi-National Emerging (ETF)0.05%
Pakistan0.00%
Philippines0.00%
Qatar0.00%
Hungary0.00%
Chile0.00%
Colombia0.00%
Egypt0.00%
Greece0.00%

(VS. Benchmark)

China31.18%
South Korea14.08%
Taiwan11.84%
India8.99%
Brazil6.40%
Russia3.54%
Thailand2.30%
Multi-National Emerging (ETF)0.00%
Malaysia2.40%
South Africa6.77%
Mexico3.13%
Turkey0.69%
Poland1.20%
Peru0.42%
Saudi Arabia0.00%
United Arab Emirates0.66%
Indonesia1.92%
Czech Republic0.19%
Multi-National Emerging (ETF)0.00%
Pakistan0.07%
Philippines0.99%
Qatar0.90%
Hungary0.27%
Chile1.15%
Colombia0.46%
Egypt0.13%
Greece0.31%
China
South Korea
Taiwan
India
Brazil
Russia
Thailand
Multi-National Emerging (ETF)
Malaysia
South Africa
Mexico
Turkey
Poland
Peru
Saudi Arabia
United Arab Emirates
Indonesia
Czech Republic
Multi-National Emerging (ETF)
Pakistan
Philippines
Qatar
Hungary
Chile
Colombia
Egypt
Greece
Other

TOP 10 ACTIVE HOLDINGS as of 31 Jul 2018

Security Country Industry Active Weight*
China Construction Bank Corp. China Banks 1.9
China Petroleum & Chemical Corp. China Energy 1.8
SK hynix, Inc. South Korea Semiconductors & Semi Equipment 1.6
PTT Public Co., Ltd. Thailand Energy 1.4
Tencent Holdings Ltd. China Software & Services 1.4
Samsung Electronics Co., Ltd. South Korea Technology Hardware & Equipment 1.4
Investimentos Itau Brazil Banks 1.4
Anhui Conch Cement Co., Ltd. China Materials 1.2
Lukoil Russia Energy 1.1
Ping An Insurance (Group) Co. of China Ltd. China Insurance 1.0

*Active defined as Fund weight minus MSCI EM Index weight. Holdings are subject to change.

Approach

We believe the best way to exploit the investment opportunities in emerging markets equities is through a combination of value and growth, and bottom-up and top-down factors. For Causeway Emerging Markets Fund, our quantitative stock selection process is focused on attractively valued companies with superior earnings prospects and positive market sentiment; these companies should produce consistent returns across investment cycles. We use the same approach to select sectors and countries, comparing valuation against earnings growth and market sentiment. At the country level, we also consider the health of the macro-economy. Our quantitative process seeks to combine these factors while attempting to avoid undue sources of risk, which is defined as tracking error (a measurement of dispersion from a benchmark index).

The investment process begins with a liquidity screen on emerging markets equities. Our model creates a return forecast for every stock in the investable universe. We optimize the portfolio weights to maximize portfolio return potential, targeting a 5% tracking error relative to the benchmark MSCI Emerging Markets Index, and subject to additional relative constraints (sector, country, and stock).

Causeway Emerging Markets Fund is a fully invested portfolio of typically 110-150 stocks, with an average 85% annual turnover. Typically, the Fund is undervalued relative to the benchmark on a number of metrics, with greater earnings growth expectations.

Commentary

PERFORMANCE REVIEW for the month ended 31 July 2018


After posting negative returns in the second quarter of 2018, emerging market equities rebounded in July. The MSCI Emerging Markets Index (“Index”) returned 1.78% in local currency terms during the month and all region groups within the Index delivered positive returns. Led by Brazil and Mexico, emerging Latin America was the top performing region group in the Index. The emerging Europe, Middle East and Africa (“EMEA”) region was buoyed by a rebound in Russian equities. Taiwan and India were strong performing countries within the emerging Asia region, offsetting the negative returns posted by Chinese equities. Energy, materials, and utilities were the top performing sectors in local currency terms. The poorest performing sectors during the month were health care, consumer discretionary, and real estate.

Causeway Emerging Markets Fund (“Fund”) underperformed the Index in July 2018. We use both bottom-up and top-down factor categories to forecast alpha (return in excess of the Index) for the stocks in the Fund’s investable universe. Our bottom-up value factor category was a strong indicator in July, however,the factor continues to lag over the year-to-date period. The earnings growth factor category was negative during the month and the price momentum factor category, as measured by our technical factors, was also a weak indicator. Of our top-down factors, the currency and sector factors were positive during the month while the macroeconomic and country factors were negative.

Over the month, Fund positioning in the EMEA region detracted from relative performance versus the Index, primarily driven by an overweight position in Turkey and an underweight in Qatar. Within the emerging Latin America region, stock selection in Brazil detracted from relative performance. Positioning in the emerging Asia region contributed to relative performance due to positive stock selection in China, South Korea, and Malaysia. From a sector perspective, the largest detractors from relative performance were information technology, financials, and real estate. Positioning in the health care, consumer discretionary, and consumer staples sectors contributed to relative performance. The three largest stock-level detractors from relative performance were an overweight position in online services company, Tencent Holdings Ltd. (China) and underweight positions in energy & industrials holding company, Reliance Industries Ltd. (India) and oil & gas exploration company, Petroleo Brasileiro SA (Brazil). The greatest stock-level contributors to relative performance were overweight positions in financial & industrial holdings company, Investimentos Itau (Brazil), cement manufacturer, Anhui Conch Cement Corp. (China), and oil & gas exploration & production company, China Petroleum & Chemical Corp. (China).

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.

Dividends

2017$0.2232
2016$0.1597
2015$0.1620
2014$0.2775
2013$0.0825
2012$0.2526
2011$0.0778
2010$0.2451
2009$0.2830
2008$0.1186
2007$0.2002
Load More

Short-term Capital Gains

2017$0.0000
2016$0.0000
2015$0.0000
2014$0.0000
2013$0.0000
2012$0.0000
2011$0.0000
2010$0.0000
2009$0.0000
2008$0.0000
2007$0.4003
Load More

Long-term Capital Gains

2017$0.0000
2016$0.0000
2015$0.0000
2014$0.0000
2013$0.0000
2012$0.0000
2011$0.0000
2010$0.0000
2009$0.0000
2008$0.0000
2007$0.0000
Load More

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

Consent to Electronic Delivery

Consent to Electronic Delivery

By clicking Submit, you consent to the electronic delivery, via download from this website, of the Causeway Fund's prospectuses, privacy policies, account applications, IRA Disclosure Statement(s), IRA Custodial Agreement(s) and any other materials that may be required in connection with the information you requested, on the terms set forth below. You also agree to read these documents before investing, and agree to the terms contained in these documents, particularly the prospectus.

Access to Online Documents

To view and print the documents, you will need Adobe Acrobat Reader. If you do not have Acrobat Reader, you can download it for free at www.adobe.com. If you are unable to download, view, or print the documents, contact Causeway Funds at 866-947-7000 for assistance or to request a free paper copy of any of these documents.

Duration of Election and Consent

Your consent applies only to these documents. If you request additional information, you may be required to consent to electronic delivery again. You may withdraw your consent to electronic delivery by contacting Causeway Funds at 866-947-7000.

Costs and Risks

Causeway Funds does not charge you a fee to use our website, but you could incur expenses from an internet service provider when you access information online. Also, be aware that your internet service provider may occasionally experience system failure, and hyperlinks to documents may not function properly.

Submit
close
Ask Causeway

Ask Causeway

Thank You!