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Global Absolute Return Fund

Our full alpha-generating capabilities, with lower volatility and low or no equity market correlation

NAV (as of 24 May 2019)

$7.95, +0.02




24 Jan 2011



Fact Sheet Prospectus

Fund Profile

The Fund takes long and short exposures in common and preferred stocks of companies located primarily in developed countries outside the U.S. and of companies in the U.S. To obtain exposure to long and short positions in securities, the Fund enters into one or more total return equity swap agreements. Although the Fund is permitted to take direct long and short positions in securities, other than swap agreements, it does not currently intend directly to purchase or sell securities or directly to hold short positions in securities. The Investment Adviser integrates fundamental and quantitative research to manage the Fund’s long exposures (the “long portfolio” of the Fund). The Investment Adviser uses its quantitative investment strategy designed to identify short exposures that it expects to underperform the MSCI World Index to manage the Fund’s short exposures (the “short portfolio” of the Fund).

Minimum Investment$1,000,000
Sales ChargeNone
Net Expense Ratio1.52%
Gross Expense Ratio1.81%
Dividend FrequencyAnnual
Capital Gain FrequencyAnnual
BenchmarkICE BoAML 3-Month US TBill


Fund Quarter to Date Year to Date 1 Year3 Year5 Year Since Inception
CGAIX -3.3%-9.8%-1.2%-0.8%-1.0%1.7%
ICE BoAML 3-Month US TBill 0.2%0.8%2.2%1.3%0.8%0.5%
Fund Quarter to Date Year to Date 1 Year3 Year5 Year Since Inception
CGAIX -6.7%-6.7%2.8%0.7%-0.5%2.1%
ICE BoAML 3-Month US TBill 0.6%0.6%2.1%1.2%0.7%0.5%


Position Details as of 30 Apr 2019

Cash 46,165,264
Market Value Long 72,404,713
Market Value Short -73,228,962
Net Positional Value -824,249
NAV 45,341,015
Net Exposure -1.82%
Leverage 3.21
Long Positions 101
Short Positions 125
Total 226

Characteristics as of 30 Apr 2019

Long Portfolio Short Portfolio MSCI World
No. of Exposures 101 125 1636
Wtd Avg Mkt Cap (Mn $US) $51,923 $12,660 $149,422
FY2 Price/Earnings 9.7 16.1 14.9
Price/Book Value 1.5 1.7 2.5
Return on Equity (%) 16.2 4.3 19.3

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. Return on equity is calculated by taking a year's worth of earnings and dividing them by the average shareholder equity for that year.

Sector Exposure as of 30 Apr 2019

Long Exposure (%)Short Exposure (%)Net Exposure (%)
Health Care10.99-5.865.13
Information Technology15.79-11.054.74
Consumer Discretionary16.05-11.824.23
Communication Services13.25-10.832.42
Real Estate3.45-8.50-5.05
Consumer Staples4.61-9.96-5.35

Country Exposure as of 30 Apr 2019

Long Exposure (%)Short Exposure (%)Net Exposure (%)
United Kingdom13.86-10.273.59
New Zealand1.33-0.311.02
South Korea8.04-7.920.12
United States63.31-66.88-3.57
Hong Kong0.00-6.42-6.42

TOP 10 Positions as of 30 Apr 2019

Top Ten Long PositionsTop Ten Short Positions
CompanyEnding Weight (%)CompanyEnding Weight (%)
FirstEnergy Corp.3.17%Hitachi Chemical Co., Ltd.-3.52%
H&R Block, Inc.3.13%Carvana Co.-3.37%
Citigroup, Inc.3.12%Aqua America, Inc.-3.33%
Koninklijke VolkerWessels NV3.11%SiteOne Landscape Supply, Inc.-3.30%
Microsoft Corp.3.11%Markel Corp.-3.30%
Alaska Air Group, Inc.3.10%Premium Brands Holdings-3.22%
Oracle Corp.3.09%Cellnex Telecom SA-3.16%
KDDI Corp.3.09%Beazley Plc-3.15%
Coca-Cola Amatil Ltd.3.07%Daimler AG-3.10%
Manulife Financial3.05%American International Group, Inc.-3.10%

Holdings are subject to change.


Causeway Global Absolute Return (GAR) Fund is designed for investors who want equity-like returns with lower volatility and lower market correlation. The Fund invests in global developed markets equities, using swap agreements to obtain exposures to long and short positions.

Causeway integrates fundamental and quantitative research to manage the Fund’s long exposures and its quantitative investment strategy to manage the short exposures. Both the long and short portfolios seek to add alpha (performance exceeding the long or short MSCI World Index), which is amplified by leverage up to 4x, with a target of 3x.

The GAR Fund's net long/short notional exposure will generally not exceed plus or minus 10% of net assets. However, the long portfolio and the short portfolio will each have different exposures under swap agreements that will not be fully hedged. Unrealized gains or losses through swap agreements are also constrained, limiting counterparty risk.

The GAR Fund typically has 60-120 long exposures and 60-140 short exposures.


PERFORMANCE REVIEW for the month ended 30 Apr 2019

Causeway Global Absolute Return Fund (“Fund”) underperformed the ICE BofAML US 3-Month Treasury Bill Index in the month of April. The Fund’s underperformance was driven by both the long and short portfolios: the Fund’s global long portfolio underperformed the MSCI World Index (“World Index”) and the Fund’s global short portfolio outperformed the World Index, also contributing negatively to overall performance.

After a first quarter recovery rally, equity markets continued to rise in April as monetary policy remained accommodative in most regions globally, especially in the US and China. The top performing markets in our investable universe were Israel, Germany, Austria, Ireland, and Sweden. The worst performing markets were Denmark, Finland, South Korea, New Zealand, and Hong Kong. The best performing sectors in the World Index were financials, information technology, and communication services. The worst performing sectors were health care, real estate, and utilities.

The Fund takes long and short notional exposures to securities under swap agreements. We use a combination of fundamental and quantitative inputs to select exposures for the long portfolio of the Fund, while we use primarily quantitative inputs to select exposures for the short portfolio. Our fundamental inputs reflect the risk-adjusted total return potential of stocks favored by our fundamental research team. Our quantitative inputs include signals that seek long (short) positions in stocks which we believe are undervalued (overvalued) and have improving (deteriorating) earnings growth dynamics, positive (negative) technical price movements, and superior (inferior) quality of earnings. During the month of April, none of our quantitative alpha factor categories demonstrated predictive power. Contrary to expectations, stocks with cheap valuations marginally underperformed those with expensive valuations, stocks with improving earnings growth dynamics underperformed those with worsening dynamics, stocks with positive technical indicators underperformed those with negative technical indicators, and stocks demonstrating higher earnings quality underperformed those with lower earnings quality.

Within the long portfolio, attribution effects were weakest in the materials, media & entertainment, and software & services industry groups. Long-side attribution effects were strongest in the commercial services & supplies, real estate, and health care equipment & services industry groups. Long exposures that detracted most from the Fund’s performance were Takeda Pharmaceutical Co., Ltd. (Japan), carbon products manufacturer, Tokai Carbon Co., Ltd. (Japan), for-profit educator, K12, Inc. (United States), mobile telecommunications operator, China Mobile Ltd. (China), and specialty retail jeweler, Signet Group (United States). Long exposures that contributed most to performance were tax preparation company, H&R Block, Inc. (United States), student loan services company, Navient Corp. (United States), global financial services giant, Citigroup, Inc. (United States), furniture & electronics rent-to-own company, Rent-A-Center, Inc. (United States), and banking & financial services company, BNP Paribas SA (France).

Within the short portfolio, attribution effects were weakest in the pharmaceuticals & biotechnology, insurance, and automobiles & components industry groups. Short-side attribution effects were strongest in the consumer durables & apparel, media & entertainment, and materials industry groups. Short exposures that detracted most from performance were sensor producer, ams AG (Germany), online car dealer, Carvana Co. (United States), chemicals manufacturer, Hitachi Chemical Co., Ltd. (Japan), SiteOne Landscape Supply, Inc. (United States), and automaker, Great Wall Motor Co., Ltd. (China). Short exposures that contributed most to the Fund’s performance included materials technology company, Umicore (Belgium), digital media player manufacturer, Roku, Inc. (United States), oil exploration & production company, Aker BP ASA (Norway), electric utility, Hokuriku Electric Power Co. (Japan), and steel structure manufacturer, Maruichi Steel Tube Ltd. (Japan).

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.


2013 $0.4332
2012 $0.2807
2011 $0.1015
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Short-term Capital Gains

2013 $0.0000
2012 $0.0000
2011 $0.3053
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Long-term Capital Gains

2013 $0.0000
2012 $0.0000
2011 $0.0000
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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).


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