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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 09 Nov 2018)

$10.12, -0.01




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$5,000
Sales ChargeNone
Net Expense Ratio1.77%
Gross Expense Ratio1.80%
Dividend FrequencyAnnual
Capital Gain FrequencyAnnual
Benchmark BofA ML 3M US TBill


Fund Quarter to Date Year to Date 1 Year3 Year5 Year Since Inception
CGAVX 4.9%12.4%13.8%4.8%1.6%3.3%
ICE BofAML 90 T Bill 0.2%1.5%1.7%0.9%0.6%0.4%
Fund Quarter to Date Year to Date 1 Year3 Year5 Year Since Inception
CGAVX 9.5%7.2%8.2%2.6%0.8%2.7%
ICE BofAML 90 T Bill 0.5%1.3%1.6%0.8%0.5%0.4%


Position Details as of 30 Sep 2018

Cash 39,241,153
Market Value Long 63,879,651
Market Value Short -62,079,906
Net Positional Value 1,799,745
NAV 41,040,898
Net Exposure 4.39%
Leverage 3.07
Long Positions 95
Short Positions 115
Total 210

Characteristics as of 30 Sep 2018

Long Portfolio Short Portfolio MSCI World
No. of Exposures 95 115 1640
Wtd Avg Mkt Cap (Mn $US) $57,414 $16,441 $149,268
FY2 Price/Earnings 10.8 14.8 15.2
Price/Book Value 1.6 1.7 2.5
Return on Equity (%) 17.1 5.4 19.0

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 Sep 2018

Long Exposure (%)Short Exposure (%)Net Exposure (%)
Telecommunication Services13.28-6.706.58
Health Care14.51-9.175.34
Consumer Discretionary17.56-17.040.52
Information Technology18.21-20.31-2.10
Real Estate3.71-8.23-4.52
Consumer Staples1.55-6.42-4.87

Country Exposure as of 30 Sep 2018

Long Exposure (%)Short Exposure (%)Net Exposure (%)
United Kingdom14.73-11.703.03
New Zealand1.510.001.51
United States63.85-63.500.35
South Korea8.20-8.43-0.23
Hong Kong1.06-3.69-2.63

TOP 10 Positions as of 30 Sep 2018

Top Ten Long PositionsTop Ten Short Positions
CompanyEnding Weight (%)CompanyEnding Weight (%)
Viacom, Inc.3.21%Samsung Heavy Industries Co., Ltd.-3.43%
SK Telecom Co., Ltd.3.19%Keikyu Corp.-3.13%
Linde AG3.12%Hitachi Chemical Co., Ltd.-3.01%
Oracle Corp.3.12%China Unicom (Hong Kong) Ltd.-2.99%
Advance Auto Parts, Inc.3.06%Equinix, Inc.-2.95%
First Bancorp/Puerto Rico3.04%American International Group, Inc.-2.93%
China Mobile Ltd.3.04%Daimler AG-2.93%
Signet Group3.03%Marsh & McLennan Cos., Inc.-2.92%
Microsoft Corp.3.01%Autodesk, Inc.-2.91%
Aviva Plc3.01%Healthcare Services Group, Inc.-2.88%

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 Sep 2018

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

Developed equity markets appreciated in September following signs of continuing global growth, albeit less synchronized than in 2017 as the US has outpaced other developed markets. The top performing markets in our investable universe included Norway, Japan, Austria, Sweden, and Italy. The worst performing markets included Denmark, Ireland, the Netherlands, Portugal, and Belgium. The best performing sectors in the World Index were energy, telecommunication services, and health care. The worst performing sectors were real estate, financials, and information technology.

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 September, all of our quantitative alpha factor categories demonstrated predictive power. Stocks with cheap valuations outperformed those with expensive valuations, stocks with improving earnings dynamics outperformed those with worsening dynamics, stocks with positive technical indicators outperformed those with negative technical indicators, and stocks demonstrating higher earnings quality outperformed those with lower earnings quality.

Within the long portfolio, attribution effects were strongest in the capital goods, media & entertainment, and telecommunication services industry groups. Long-side attribution effects were weakest in the materials, health care equipment & services, and utilities industry groups. Long exposures that contributed most to the Fund’s performance included heavy truck manufacturer, Sinotruk Hong Kong Ltd. (China), global entertainment content company, Viacom, Inc. (United States), diesel engine manufacturer, Weichai Power Co., Ltd. (China), steelmaker,Ssab Svenskt Stal (Sweden), and Yangzijiang Shipbuilding (Holdings) Ltd. (Singapore). Long exposures that detracted most from performance were chemicals producer, Venator Materials (United States), utilities provider, SSE Plc (United Kingdom), wood products manufacturer, Boise Cascade Co. (United States), Yangtze Optical Fibre & Cable Joint Stock (China), and forest products company, Canfor Corp. (Canada).

Within the short portfolio, attribution effects were strongest in the semiconductors & semi equipment, health care equipment & services, and materials industry groups. Short-side attribution effects were weakest in the capital goods, retailing, and banks industry groups. Short exposures that contributed most to the Fund’s performance included integrated circuits manufacturer, ams AG (Austria), medical device company, Nevro Corp. (United States), chemicals manufacturer, DowDuPont, Inc. (United States), medical office building operator, Healthcare Trust of America, Inc.(United States), and SiteOne Landscape Supply, Inc. (United States). Short exposures that detracted most from the Fund’s performance included shipbuilder, Samsung Heavy Industries Co.,Ltd. (South Korea), fashion retailer, L Brands, Inc. (United States), aerospace & transportation company, Bombardier (Canada), rail operator, Keikyu Corp. (Japan), and auto dealer, China Zhengtong Auto Services Holdings (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.


2013 $0.4126
2012 $0.2586
2011 $0.0948
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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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