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*
+2.33%
Nav*
$9.21, -0.19
Inception
January 31, 2011
Cusip
14949P604
Benchmark
MSCI ACWI
Minimum Investment
$5,000
Sales Charge
None
Net Expense Ratio
1.30%
Gross Expense Ratio
1.33%
*As of August 23, 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
Fund-1.9%8.9%-6.2%6.0%2.8%0.0%0.0%
MSCI ACWI0.3%17.0%3.5%10.8%7.1%9.8%5.6%
QTDYTD1 year3 years5 years10 yearsSince inception
Fund-1.9%8.9%-6.2%6.0%2.8%0.0%0.0%
MSCI ACWI0.3%17.0%3.5%10.8%7.1%9.8%5.6%
QTDYTD1 year3 years5 years10 yearsSince inception
Fund0.4%11.0%-0.4%8.1%2.9%0.0%0.0%
MSCI ACWI3.8%16.6%6.3%12.2%6.7%10.7%5.6%
QTDYTD1 year3 years5 years10 yearsSince inception
Fund0.4%11.0%-0.4%8.1%2.9%0.0%0.0%
MSCI ACWI3.8%16.6%6.3%12.2%6.7%10.7%5.6%
2018201720162015201420132012
Fund-11.2%17.6%7.4%-6.6%5.2%29.0%16.2%
MSCI ACWI-8.2%23.1%8.2%-0.3%5.5%27.4%16.5%
Fund
MSCI ACWI
2018201720162015201420132012
-11.2%17.6%7.4%-6.6%5.2%29.0%16.2%
-8.2%23.1%8.2%-0.3%5.5%27.4%16.5%

Portfolio (as of July 31, 2019)

Benchmark: MSCI ACWI
Asset Allocation
Fund
Stocks99.1%
Cash0.9%
Fund Characteristics
FundBenchmark
No. of holdings 51 2843
Weighted avg. market cap (US $MM)$76,074$141,514
FY2 price/earnings11.014.6
Price/book value1.42.3
Net assets$1,378,378-
TOP 10 HOLDINGS
Security Country Percent
Volkswagen AGGermany3.9%
Takeda Pharmaceutical Co., Ltd.Japan3.3%
BASF SEGermany3.3%
UniCredit S.p.A.Italy3.2%
Sabre Corp.United States3.2%
China Mobile Ltd.China3.0%
Alaska Air Group, Inc.United States3.0%
British American Tobacco plcUnited Kingdom2.8%
AstraZeneca PlcUnited Kingdom2.7%
ABB Ltd.Switzerland2.7%

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 Technology17.0%16.4%
Financials14.7%16.8%
Industrials14.2%10.4%
Communication Services12.1%8.9%
Health Care11.8%11.3%
Energy8.6%5.7%
Materials7.3%4.8%
Consumer Discretionary4.4%10.9%
Consumer Staples4.3%8.4%
Utilities4.0%3.3%
Real Estate0.8%3.2%
TOP 10 COUNTRIES
Country Fund Benchmark
United States37.4%55.9%
United Kingdom19.4%4.9%
Japan11.6%7.1%
Germany7.8%2.5%
China5.3%3.7%
South Korea4.5%1.4%
Switzerland4.3%2.8%
Italy3.2%0.7%
France2.0%3.3%
Netherlands1.8%1.1%
Regional Allocation
  • North America 38.8%
  • Europe – other 38.6%
  • Pacific 11.6%
  • Emerging Asia 9.9%
  • Emerging Europe, Middle East, Africa 0.3%

Commentary (As of July 31, 2019)

Highlights

  • Following strong performance in the first half of the year, equity markets delivered more muted returns in July. On the back of central banks signaling stimulus, value stock valuations continued to contract while growth stock valuations rose.

Portfolio attribution

Causeway Global Value Fund ("Fund") underperformed the Index during the month, due primarily to stock selection. Fund holdings in the software & services, media & entertainment, technology hardware & equipment, capital goods, and materials industry groups detracted from relative performance. Holdings in the pharmaceuticals & biotechnology, health care equipment & services, utilities, real estate, and banks industry groups contributed to relative performance. The largest detractor was enterprise infrastructure software company, Micro Focus International Plc (United Kingdom). Additional notable detractors included diversified chemicals manufacturer, BASF SE (Germany), mobile telecommunications operator, China Mobile Ltd. (China), Takeda Pharmaceutical Co., Ltd. (Japan), and oil & natural gas producer, Encana (Canada). The top contributor to return was medical device producer, Zimmer Biomet Holdings, Inc.(United States). Other notable contributors included travel & tourism technology company, Sabre Corp. (United States), telecommunication services provider, Vodafone Group (United Kingdom), pharmaceutical company, AstraZeneca Plc (United Kingdom), and property & casualty insurer, Sompo Holdings, Inc. (Japan).

Investment outlook

On the back of central banks signaling stimulus, value stock valuations continued to contract in July while growth stock valuations rose. Central bank liquidity and momentum-driven investing trends continue to support long duration equities. We believe that additional accommodative central bank policies may already be priced into growth stocks. The de-rating of value has resulted in current market multiples for MSCI Value indices implying negative perpetuity earnings growth rates across geographies, even as the world economy is forecast to grow. We find such pessimism towards value stocks to be unwarranted, especially considering that the earnings of value stocks have outpaced those of growth stocks since the Global Financial Crisis. We believe that value stocks that have improved their earnings growth should re-rate as investors consider fundamentals rather than price momentum. In such a long period of falling interest rates, some companies with longer duration cash flows have become highly levered. If policy action cannot drive a meaningful improvement in economic data and downside risks materialize even marginally, companies exhibiting balance sheet strength should fare better than those with excess debt levels. Rather than trying to time monetary policy, we are remaining disciplined in our bottom-up valuation process. We seek to identify companies committed to improving free cash flow generation and rewarding shareholders via dividends and buybacks.

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$0.1809$0.2508$1.2062
2017$0.2082$0.4167$0.1330
2016$0.1309$0.0000$0.0000
2015$0.0931$0.0000$0.2089
2014$0.1985$0.3781$0.5989
2013$0.0921$0.2969$0.1573
2012$0.0874$0.0094$0.0380
2011$0.8360$0.0000$0.0000
2010$0.0000$0.0000$0.0000
2009$0.0000$0.0000$0.0000
2008$0.0000$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: