Diversified exposure to emerging markets, seeking to capture value and growth

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.

Causeway uses a quantitative investment approach to purchase and sell investments for the Fund. Causeway’s proprietary computer model analyzes a variety of factors to assist in selecting securities. The model currently analyzes factors relating to valuation, sentiment, technical indicators, macroeconomics, currency, and country-sector aggregate.

YTD Return*
+17.45%
Nav*
$12.99, +0.04
Inception
March 30, 2007
Cusip
149498206
Benchmark
MSCI Emerging Markets
Minimum Investment
$5,000
Sales Charge
None
Gross Expense Ratio
1.39%
Net Expense Ratio
1.35%
*As of July 14, 2025
**Contractual fee waivers are in effect until 1/31/2026.

Strategy overview

The portfolio managers discuss our Emerging Markets strategy.

Portfolio managers

Quantitative Portfolio Manager
Head of Quantitative Research
Quantitative Portfolio Manager
Quantitative Portfolio Manager
Quantitative Portfolio Manager

Performance

Table Header QTD YTD 1 year3 years5 years10 years Since inception
Fund 15.8%16.5%13.8%14.5%9.0%4.9%4.7%
MSCI Emerging Markets 12.0%15.3%15.3%9.7%6.8%4.8%4.0%
Table Header QTD YTD 1 year3 years5 years10 years Since inception
Fund 15.8%16.5%13.8%14.5%9.0%4.9%4.7%
MSCI Emerging Markets 12.0%15.3%15.3%9.7%6.8%4.8%4.0%
Table Header QTD YTD 1 year3 years5 years10 years Since inception
Fund 15.8%16.5%13.8%14.5%9.0%4.9%4.7%
MSCI Emerging Markets 12.0%15.3%15.3%9.7%6.8%4.8%4.0%
Table Header QTD YTD 1 year3 years5 years10 years Since inception
Fund 15.8%16.5%13.8%14.5%9.0%4.9%4.7%
MSCI Emerging Markets 12.0%15.3%15.3%9.7%6.8%4.8%4.0%
Table Header 20242023202220212020201920182017201620152014201320122011201020092008
Fund 14.7%16.9%-23.2%-1.5%16.7%16.4%-18.1%39.5%8.9%-16.2%1.8%-2.8%25.6%-18.2%26.1%87.9%-58.5%
MSCI Emerging Markets 7.5%9.8%-20.1%-2.5%18.3%18.4%-14.6%37.3%11.2%-14.9%-2.2%-2.6%18.2%-18.4%18.9%78.5%-53.3%
Table Header
Fund
MSCI Emerging Markets
20242023202220212020201920182017201620152014201320122011201020092008
14.7%16.9%-23.2%-1.5%16.7%16.4%-18.1%39.5%8.9%-16.2%1.8%-2.8%25.6%-18.2%26.1%87.9%-58.5%
7.5%9.8%-20.1%-2.5%18.3%18.4%-14.6%37.3%11.2%-14.9%-2.2%-2.6%18.2%-18.4%18.9%78.5%-53.3%

Portfolio (as of June 30, 2025)

Benchmark: MSCI Emerging Markets
Asset Allocation
Table Header Fund
Stocks 96.6%
Cash 3.4%
Fund Characteristics
Table Header Fund Benchmark
No. of holdings 178 1203
Weighted avg. market cap (US $MM) $147,111 $145,872
NTM price/earnings 9.7 12.7
Price/book value 1.5 1.9
NTM EPS revision (wtd. avg) 11.2 -1.9
Net assets $517,364,945 -
TOP 10 ACTIVE HOLDINGS
Security Country Active weight*
China Construction Bank Corp. China 1.8%
REC Ltd. India 1.2%
Bharti Airtel Ltd. India 1.0%
Tencent Holdings Ltd. China 1.0%
Pop Mart International Group Ltd. China 0.9%
Sea Ltd. Singapore 0.9%
NetEase, Inc. China 0.8%
3SBio, Inc. China 0.8%
Cosco Shipping Holdings Co China 0.8%
JBS Brazil 0.7%

A "weighted average” measures a characteristic by the market capitalization of each stock. Price/book value is the weighted average of the price/book values of all the stocks in a portfolio. The P/B value 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-12-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.

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

SECTOR WEIGHTS
Sector Fund Benchmark
Information Technology 23.8% 24.1%
Financials 20.0% 24.5%
Consumer Discretionary 13.4% 12.7%
Communication Services 12.9% 9.8%
Industrials 9.2% 6.9%
Materials 4.4% 5.8%
Health Care 3.6% 3.2%
Equity Funds 3.0% 0.0%
Real Estate 2.0% 1.6%
Consumer Staples 1.8% 4.5%
Utilities 1.3% 2.6%
Energy 1.2% 4.3%
TOP 10 COUNTRIES
Country Fund Benchmark
China 31.4% 28.4%
Taiwan 18.5% 18.9%
South Korea 15.0% 10.7%
India 14.8% 18.1%
Brazil 4.0% 4.4%
Saudi Arabia 1.8% 3.5%
United Arab Emirates 1.7% 1.6%
South Africa 1.7% 3.2%
Turkey 1.3% 0.5%
Indonesia 0.9% 1.2%
Regional Allocation
  • Emerging Asia 81.5%
  • Emerging Europe, Middle East, Africa 7.9%
  • Emerging Latin America 5.7%
  • Pacific 0.9%
  • North America 0.6%
  • Multi Region Emerging (ETF) 0.1%

Commentary (As of June 30, 2025)

Highlights

  • International equity markets continued their upward trajectory in June, with nearly all developed and emerging market countries achieving local currency gains.
  • A backdrop of stable to falling rates in the US coupled with US dollar weakness is typically a positive environment for EM assets. With the Trump Administration announcing escalating tariffs, particularly with China, EM trade with the US was materially diminished earlier this year. However, the tariff tensions appear to have cooled and the market generally expects tariff deals to be announced in July. This would be a positive development for export - oriented EM countries like China, South Korea, and Taiwan.
  • In South Korea, Democratic Party nominee Lee Jae Myung won the June presidential election. In addition to removing a source of uncertainty, the election ushered in a significant set of legislative proposals that appear to be minority shareholder friendly. The most notable one is the proposed amendment to the Korea Commercial Act, which expands companies’ boards of directors’ fiduciary duties to also consider the interests of minority shareholders. The Fund is overweight South Korean stocks due in part to attractive valuations and favorable top-down characteristics.

Portfolio Attribution

The Causeway Emerging Markets Fund (“Fund”), on a net asset value basis, outperformed the Index in June 2025. We use both bottom-up “stock-specific” and top-down factor categories to seek to forecast alpha for the stocks in the Fund’s investable universe. Our bottom-up growth, technical (price momentum), valuation, and corporate events factors were positive indicators in June, while competitive strength was a negative indicator during the month. Our top-down country/sector aggregate was a positive indicator. Macroeconomic and currency were negative indicators.

Investment Outlook

The US Federal Reserve was on hold in the second quarter and Chairman Powell has been reluctant to cut interest rates as he is wary of the inflationary effects of tariffs. Meanwhile, most EM currencies rallied relative to the US dollar during the quarter. Even though real rates are positive in the US, many investors are questioning the sustainability of massive US deficits and debt. A backdrop of stable to falling rates in the US coupled with US dollar weakness is typically a positive environment for EM assets. With the Trump Administration announcing escalating tariffs, particularly with China, EM trade with the US was materially diminished earlier this year. However, the tariff tensions appear to have cooled and the market generally expects tariff deals to be announced in July. This would be a positive development for export-oriented EM countries like China, South Korea, and Taiwan.


In South Korea, Democratic Party nominee Lee Jae Myung won the June presidential election. In addition to removing a source of uncertainty, the election ushered in a significant set of legislative proposals that appear to be minority shareholder friendly. The most notable one is the proposed amendment to the Korea Commercial Act, which expands companies’ boards of directors’ fiduciary duties to also consider the interests of minority shareholders. Other shareholder friendly proposals include the separate taxation of dividends which should increase Korean companies’ anemic dividend yields, an inheritance tax amendment, the mandatory cancellation of treasury shares, and a discovery system which would give shareholders access to internal company documents. The Fund is overweight South Korean stocks due in part to attractive valuations and favorable top-down characteristics. In China, data continues to reflect disinflationary trends and gross domestic product (“GDP”) growth is expected to slow into the low four percent range. Chinese authorities appear likely to refrain from aggressive spending to boost consumption. The Fund is overweight Chinese stocks due in part to attractive valuations, but we have trimmed our consumer holdings as lackluster consumer demand is weighing on earnings growth expectations.

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. The Fund may invest in derivatives, which are often more volatile than other investments and may magnify the Fund's gains or losses. Investing in ETFs is subject to the risks of the underlying funds. International and emerging markets investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from social, economic or political instability in other nations. Emerging markets and smaller companies involve additional risks and higher volatility.

Distributions

Table Header Dividends Short-term capital gains Long-term capital gains
2024 $0.3819 $0.0000 $0.0000
2023 $0.4537 $0.0000 $0.0000
2022 $0.3931 $0.0000 $0.0000
2021 $0.3478 $0.0000 $2.4046
2020 $0.1787 $0.0000 $0.0000
2019 $0.2362 $0.0000 $0.0000
2018 $0.1777 $0.0000 $0.0000
2017 $0.1937 $0.0000 $0.0000
2016 $0.1353 $0.0000 $0.0000
2015 $0.1434 $0.0000 $0.0000
2014 $0.2425 $0.0000 $0.0000
2013 $0.1100 $0.0000 $0.0000
2012 $0.2768 $0.0000 $0.0000
2011 $0.0972 $0.0000 $0.0000
2010 $0.2560 $0.0000 $0.0000
2009 $0.2866 $0.0000 $0.0000
2008 $0.1506 $0.0000 $0.0000
2007 $0.2097 $0.4003 $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: