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*
+11.22%
Nav*
$10.01, +0.03
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 October 17, 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-1.7%9.1%-7.8%5.4%2.7%0.0%6.1%
MSCI ACWI0.1%16.7%1.9%10.3%7.2%8.9%8.0%
QTDYTD1 year3 years5 years10 yearsSince inception
Fund-1.7%9.1%-7.8%5.4%2.7%0.0%6.1%
MSCI ACWI0.1%16.7%1.9%10.3%7.2%8.9%8.0%
QTDYTD1 year3 years5 years10 yearsSince inception
Fund-1.7%9.1%-7.8%5.4%2.7%0.0%6.1%
MSCI ACWI0.1%16.7%1.9%10.3%7.2%8.9%8.0%
QTDYTD1 year3 years5 years10 yearsSince inception
Fund-1.7%9.1%-7.8%5.4%2.7%0.0%6.1%
MSCI ACWI0.1%16.7%1.9%10.3%7.2%8.9%8.0%
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 September 30, 2019)

Benchmark: MSCI ACWI
Asset Allocation
Fund
Stocks97.2%
Cash2.8%
Fund Characteristics
FundBenchmark
No. of holdings 48 2851
Weighted avg. market cap (US $MM)$77,032$141,084
FY2 price/earnings11.114.7
Price/book value1.42.3
Net assets$1,485,738-
TOP 10 HOLDINGS
Security Country Percent
Volkswagen AGGermany3.9%
UniCredit S.p.A.Italy3.7%
BASF SEGermany3.6%
Takeda Pharmaceutical Co., Ltd.Japan3.5%
China Mobile Ltd.China3.2%
ABB Ltd.Switzerland2.9%
SYNNEX Corp.United States2.8%
Sabre Corp.United States2.8%
Samsung Electronics Co., Ltd.South Korea2.8%
Marathon Petroleum 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 Technology16.6%16.3%
Financials14.5%16.7%
Industrials13.7%10.5%
Communication Services12.3%8.8%
Health Care11.6%11.3%
Energy9.6%5.5%
Materials7.1%4.7%
Consumer Discretionary3.9%10.8%
Consumer Staples3.7%8.6%
Utilities3.4%3.5%
Real Estate0.8%3.3%
TOP 10 COUNTRIES
Country Fund Benchmark
United States34.8%55.8%
United Kingdom18.9%4.8%
Japan11.2%7.3%
Germany8.7%2.5%
China5.0%3.7%
South Korea4.9%1.4%
Switzerland4.4%2.8%
Italy3.7%0.7%
France2.1%3.4%
Netherlands1.9%1.2%
Regional Allocation
  • Europe – other 39.7%
  • North America 36.3%
  • Pacific 11.2%
  • Emerging Asia 10.0%

Commentary (As of September 30, 2019)

Highlights

  • After contracting in July and August, developed equity markets rebounded in September, likely responding to a significant move upward in global bond yields. In September, momentum-driven “quality-growth” stocks ceded market leadership to stocks with strong value and cyclicality characteristics.
  • With low-to-no cost of financing, governments in Europe and elsewhere may decide to amplify fiscal spending. Without fiscal intervention, a vicious cycle of nil return in savings forces aging European and Japanese populations to save even more, adding to demand for fixed income, and pushing interest rates lower.
  • We believe our portfolios are well-positioned to benefit from a return to favor of value and cyclicality. If economically sensitive stocks outperform, we intend to use that opportunity to lower portfolio expected volatility with bargains from less cyclical sectors.

Portfolio attribution

Causeway Global Value Fund ("Fund") outperformed the Index during the month, due primarily to stock selection. Holdings in the technology hardware & equipment, energy, banks, retailing, and insurance industry groups contributed to performance compared to the Index. Fund holdings in the pharmaceuticals & biotechnology and telecommunication services industry groups, along with an underweight position in the semiconductors & semi equipment, consumer durables & apparel, and diversified financials industry groups, detracted from relative performance. The top contributor to return was design-to-distribution business process services technology company, SYNNEX Corp. (United States). Other notable contributors included oil refiner,Marathon Petroleum Corp. (United States), electronic equipment manufacturer, Samsung Electronics Co., Ltd. (South Korea), banking & financial services company, Barclays Plc (United Kingdom), and banking & financial services company, UniCredit S.p.A. (Italy). The largest detractor was travel & tourism technology company, Sabre Corp. (United States). Additional notable detractors included pharmaceuticals & chemicals company, Bayer AG (Germany), pharmaceutical & consumer healthcare products producer, Novartis AG (Switzerland), global entertainment content company, Viacom, Inc. (United States), and diversified pharmaceutical company, Merck & Co., Inc. (United States).

Investment outlook

We believe that fundamentals do prevail over the long-term…it is just very difficult to know when the market will turn. September witnessed a chain reaction of cheap stocks, often in cyclical industries, attracting bargain hunting – which, in turn, attracted more buying. Stock markets have a history of discounting future events long before they occur. We suggest that most cyclical stocks priced in a recession by the end of August and are now moving upward on the hint of fiscal spending and recovery. We believe our portfolios are well-positioned to benefit from a return to favor of value and cyclicality. If economically sensitive stocks outperform, we intend to use that opportunity to lower portfolio expected volatility with bargains from less cyclical sectors. Our team has intensified efforts to get managements to commit to specific plans to improve earnings and returns on capital. While we wait, the majority of these portfolio companies return capital to shareholders, often via generous dividend payouts. This dividend income is striking in a low-income world, reducing the duration of the investment. We are holding company managements’ collective “feet to the fire,” measuring their progress and holding them accountable to their operational restructuring plans. This makes our efforts in value investing “all weather,” though a tailwind for value risk would be welcome.

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: