Seeking value primarily in developed markets worldwide

The Fund invests primarily in common stocks of companies in developed countries located outside the US and of companies in the US. Normally, the Fund invests the majority of its total assets in companies that pay dividends or repurchase their shares. The Fund may invest up to 20% of its total assets in companies located in emerging (less developed) markets. Under normal circumstances, the Fund will invest at least 40% of its total assets in companies located in a number of countries outside the US. The Fund’s investment objective is to seek long-term growth of capital and income.

YTD Return*
-0.38%
Nav*
$10.42, -0.07
Inception
April 29, 2008
Cusip
14949P307
Benchmark
MSCI ACWI
Minimum Investment
$1,000,000
Sales Charge
None
Net Expense Ratio
1.05%
Gross Expense Ratio
1.08%
*As of January 23, 2020

Strategy overview

The portfolio managers discuss our Global Value strategy.

Portfolio managers

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

Performance

QTDYTD1 year3 years5 years10 yearsSince inception
Fund11.0%21.2%21.2%8.3%5.1%9.0%5.2%
MSCI ACWI9.1%27.3%27.3%13.0%9.0%9.4%6.2%
QTDYTD1 year3 years5 years10 yearsSince inception
Fund11.0%21.2%21.2%8.3%5.1%9.0%5.2%
MSCI ACWI9.1%27.3%27.3%13.0%9.0%9.4%6.2%
QTDYTD1 year3 years5 years10 yearsSince inception
Fund11.0%21.2%21.2%8.3%5.1%9.0%5.2%
MSCI ACWI9.1%27.3%27.3%13.0%9.0%9.4%6.2%
QTDYTD1 year3 years5 years10 yearsSince inception
Fund11.0%21.2%21.2%8.3%5.1%9.0%5.2%
MSCI ACWI9.1%27.3%27.3%13.0%9.0%9.4%6.2%
20192018201720162015201420132012201120102009
Fund21.2%-11.1%17.9%7.7%-6.3%5.4%29.2%16.5%-1.3%18.5%40.1%
MSCI ACWI27.3%-8.9%24.6%8.5%-1.8%4.7%23.4%16.8%-6.9%13.2%35.4%
Fund
MSCI ACWI
20192018201720162015201420132012201120102009
21.2%-11.1%17.9%7.7%-6.3%5.4%29.2%16.5%-1.3%18.5%40.1%
27.3%-8.9%24.6%8.5%-1.8%4.7%23.4%16.8%-6.9%13.2%35.4%

Portfolio (as of December 31, 2019)

Benchmark: MSCI ACWI
Asset Allocation
Fund
Stocks98.6%
Cash1.4%
Fund Characteristics
FundBenchmark
No. of holdings 51 3049
Weighted avg. market cap (US $MM)$86,339$166,138
FY2 price/earnings12.216.1
Price/book value1.52.4
Net assets$79,153,547-
TOP 10 HOLDINGS
Security Country Percent
Volkswagen AGGermany4.3%
Takeda Pharmaceutical Co., Ltd.Japan3.5%
UniCredit S.p.A.Italy3.5%
BASF SEGermany3.3%
China Mobile Ltd.China3.2%
ABB Ltd.Switzerland3.1%
British American Tobacco plcUnited Kingdom3.0%
Sabre Corp.United States2.9%
Samsung Electronics Co., Ltd.South Korea2.9%
SYNNEX Corp.United States2.8%

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 WEIGHTS
Sector Fund Benchmark
Information Technology16.7%17.2%
Industrials16.6%10.3%
Financials13.1%16.7%
Communication Services12.4%8.7%
Health Care10.8%11.8%
Energy9.6%5.2%
Materials8.0%4.8%
Consumer Discretionary5.1%10.8%
Utilities3.4%3.3%
Consumer Staples3.0%8.0%
Real Estate0.0%3.2%
TOP 10 COUNTRIES
Country Fund Benchmark
United States35.6%55.6%
United Kingdom17.1%4.8%
Germany11.8%2.5%
Japan8.2%7.2%
China5.6%4.2%
Switzerland5.2%2.7%
South Korea4.8%1.4%
Italy3.5%0.7%
France3.0%3.3%
Netherlands2.4%1.2%
Regional Allocation
  • Europe – other 42.9%
  • North America 37.1%
  • Emerging Asia 10.5%
  • Pacific 8.2%

Commentary (As of December 31, 2019)

Highlights

  • December's rising equity markets capped a calendar year of surging stock prices, as central banks, attempting to prolong economic expansion, implemented increasingly accommodative monetary policies.
  • We believe European countries may join the US and China and increase fiscal spending. To fund this spending, European governments will need to sell more bonds, which may put upward pressure on interest rates as supply meets, and potentially outpaces, demand.
  • In the absence of a recession, earnings of economically sensitive stocks should attract enough attention to garner a re-rating of valuation multiples. We seek talented senior management teams steering financially strong companies through profitability setbacks by focusing on reaccelerating earnings and cash flow.

Portfolio attribution

Causeway Global Value Fund ("Fund") outperformed the Index during the month, due primarily to stock selection. Holdings in the energy, food beverage & tobacco, telecommunication services, retailing, and media & entertainment industry groups contributed to performance compared to the Index. Fund holdings in the transportation, software & services, pharmaceuticals & biotechnology, and materials industry groups, along with an underweight position in the semiconductors & semi equipment industry group, detracted from relative performance. The top contributor to return was energy exploration & production company, Halliburton Co. (United States). Other notable contributors included electronic equipment manufacturer, Samsung Electronics Co., Ltd. (South Korea), mobile telecommunications operator, China Mobile Ltd. (China), power & automation technology company, ABB Ltd. (Switzerland), and British American Tobacco plc (United Kingdom). The largest detractor was Takeda Pharmaceutical Co., Ltd. (Japan). Additional notable detractors included enterprise management software provider, Oracle Corp. (United States), robotics manufacturer, FANUC Corp. (Japan), enterprise infrastructure software company, Micro Focus International Plc (United Kingdom), and jet engine manufacturer, Rolls-Royce Holdings Plc (United Kingdom).

Investment outlook

We believe that much of the global central bank monetary expansion is in the rear-view mirror. Massive liquidity creation has suppressed market volatility and favored momentum relative to value-oriented trading. With central banks curtailing accommodative policies, value stocks should eventually rebound. In the absence of a recession, earnings of economically sensitive stocks should attract enough attention to garner a re-rating of valuation multiples. This process began last year, as cyclical stocks outperformed broad indices in the last four months of 2019. In 2020, we expect investors to look to diversifying systematic risks, and risk aversion could rise with an escalation of US-Iranian conflict. Therefore, transparency of investment risks and full financial disclosure will become increasingly important. These preferences may favor well-established companies with a history of rewarding shareholders (via dividends and share buybacks) and place a greater hurdle rate of return on speculative, unprofitable companies. We seek talented senior management teams steering financially strong companies through profitability setbacks by focusing on reaccelerating earnings and cash flow. To complement these “self-help” stocks, we seek consistent cash generating companies with generous dividend payouts. In years of more traditional equity market returns, rather than runaway bull markets, stability of cash flows and income should attract investor attention.

Effective October 1, 2018, the Global Value Fund’s benchmark changed from the MSCI World Index (Gross) to the MSCI ACWI Index (Gross). Causeway believes that the MSCI ACWI Index (Gross), which includes emerging as well as developed markets, better represents the types of securities in which the strategy invests. 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. A company may reduce or eliminate its dividend, causing losses to a fund. 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

DividendsShort-term capital gainsLong-term capital gains
2019$0.3324$0.13590.0305
2018$0.1956$0.2508$1.2062
2017$0.2363$0.4167$0.1330
2016$0.1493$0.0000$0.0000
2015$0.1251$0.0000$0.2089
2014$0.2232$0.3781$0.5989
2013$0.1162$0.2969$0.1573
2012$0.0968$0.0094$0.0380
2011$0.0959$0.0000$0.0000
2010$0.0800$0.0000$0.0000
2009$0.0793$0.0000$0.0000
2008$0.1306$0.0500$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: