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*
+17.48%
Nav*
$10.62, +0.03
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 November 12, 2019

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
Fund3.6%13.2%2.9%7.4%3.7%9.1%4.6%
MSCI ACWI2.8%19.9%13.2%11.9%7.7%9.4%5.7%
QTDYTD1 year3 years5 years10 yearsSince inception
Fund3.6%13.2%2.9%7.4%3.7%9.1%4.6%
MSCI ACWI2.8%19.9%13.2%11.9%7.7%9.4%5.7%
QTDYTD1 year3 years5 years10 yearsSince inception
Fund-1.7%9.2%-7.7%5.6%2.9%8.3%4.4%
MSCI ACWI0.1%16.7%1.9%10.3%7.2%8.9%5.5%
QTDYTD1 year3 years5 years10 yearsSince inception
Fund-1.7%9.2%-7.7%5.6%2.9%8.3%4.4%
MSCI ACWI0.1%16.7%1.9%10.3%7.2%8.9%5.5%
2018201720162015201420132012201120102009
Fund-11.1%17.9%7.7%-6.3%5.4%29.2%16.5%-1.3%18.5%40.1%
MSCI ACWI-8.2%23.1%8.2%-0.3%5.5%27.4%16.5%-5.0%12.3%30.8%
Fund
MSCI ACWI
2018201720162015201420132012201120102009
-11.1%17.9%7.7%-6.3%5.4%29.2%16.5%-1.3%18.5%40.1%
-8.2%23.1%8.2%-0.3%5.5%27.4%16.5%-5.0%12.3%30.8%

Portfolio (as of October 31, 2019)

Benchmark: MSCI ACWI
Asset Allocation
Fund
Stocks98.7%
Cash1.3%
Fund Characteristics
FundBenchmark
No. of holdings 51 2852
Weighted avg. market cap (US $MM)$79,768$148,594
FY2 price/earnings11.215.1
Price/book value1.42.3
Net assets$77,130,714-
TOP 10 HOLDINGS
Security Country Percent
Volkswagen AGGermany4.1%
UniCredit S.p.A.Italy3.7%
Takeda Pharmaceutical Co., Ltd.Japan3.7%
BASF SEGermany3.6%
China Mobile Ltd.China3.1%
Sabre Corp.United States3.0%
ABB Ltd.Switzerland2.9%
Marathon Petroleum Corp.United States2.8%
SYNNEX Corp.United States2.8%
FANUC Corp.Japan2.7%

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 Technology16.8%16.5%
Industrials16.5%10.5%
Financials14.5%16.7%
Communication Services12.6%8.7%
Health Care10.8%11.6%
Energy9.8%5.3%
Materials7.2%4.7%
Consumer Discretionary4.6%10.8%
Utilities3.2%3.4%
Consumer Staples2.7%8.4%
Real Estate0.0%3.3%
TOP 10 COUNTRIES
Country Fund Benchmark
United States33.6%55.5%
United Kingdom19.1%4.8%
Germany11.1%2.6%
Japan11.0%7.4%
China5.1%3.7%
South Korea4.7%1.4%
Switzerland4.5%2.8%
Italy3.7%0.7%
Netherlands2.5%1.2%
France2.1%3.4%
Regional Allocation
  • Europe – other 43.0%
  • North America 35.0%
  • Pacific 11.0%
  • Emerging Asia 9.8%

Commentary (As of October 31, 2019)

Highlights

  • Developed market equities rose during the month amid signs of easing geopolitical uncertainties and continued dovish stances from global central banks.
  • With the European Central Bank apparently intending to continue negative interest rates and asset purchases until reaching a 2% inflation target, European governments will likely need to increase fiscal stimulus to thwart further deterioration in economic conditions.
  • The resurgence of value and cyclicality over growth and momentum continued for a second consecutive month in October. This value upturn does not surprise us given the historically wide discount of cyclical stock valuations compared to more defensive stocks that occurred this year through the end of August.

Portfolio attribution

Causeway Global Value Fund ("Fund") outperformed the Index during the month, due primarily to stock selection. Holdings in the banks, automobiles & components, materials, insurance, and utilities industry groups contributed to performance compared to the Index. Fund holdings in the media & entertainment and telecommunication services industry groups, along with an overweight position in the energy industry group and an underweight position in the semiconductors & semi equipment and health care equipment & services industry groups, detracted from relative performance. The top contributor to return was automobile manufacturer, Volkswagen AG (Germany). Other notable contributors included banking & financial services company, Barclays Plc (United Kingdom), life insurer, Prudential Plc (United Kingdom), diversified chemicals manufacturer, BASF SE (Germany), and banking & financial services company, UniCredit S.p.A. (Italy). The largest detractor was oil & natural gas producer, Encana (Canada). Additional notable detractors included global entertainment content company, Viacom, Inc. (United States), major passenger railway operator, East Japan Railway Co. (Japan), British American Tobacco plc (United Kingdom), and jet engine manufacturer, Rolls-Royce Holdings Plc (United Kingdom).

Investment outlook

The resurgence of value and cyclicality over growth and momentum continued for a second consecutive month in October. As global bond yields have risen from their August 2019 lows, economically sensitive stocks generally recovered in price and valuation multiples. This value upturn does not surprise us given the historically wide discount of cyclical stock valuations compared to more defensive stocks that occurred this year through the end of August. However, to lessen our dependence on a sustained upturn in the value cycle, we continue to make portfolio company managements accountable to achieve their operational restructuring goals. We expect managements to boost profitability and free cash flow, ideally with the intent to return generous amounts of that surplus cash to shareholders. Dividends remain an important component of total return and pay shareholders to wait for valuations to improve. We consider dividend income particularly attractive in the current ultra-low interest rate environment.

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
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: