Combining our time-tested abilities in developed and emerging international markets

The Fund invests primarily in companies both in developed markets excluding the United States (the “international value portfolio”) and in emerging markets (the “emerging markets portfolio”). Causeway allocates substantially all of the Fund’s assets between the international value portfolio and the emerging markets portfolio using a proprietary asset allocation model.

International Value Portfolio: The international value portfolio consists primarily of common stocks of companies located in developed countries outside the US. Normally, the majority of this portfolio invests in companies that pay dividends or repurchase their shares. The international value portfolio may also invest in companies located in emerging (less developed) markets.

Emerging Markets Portfolio: The emerging markets portfolio is normally invested in equity securities of companies located in emerging (less developed) markets and other investments that are tied economically to emerging markets. Generally, these investments include common stock, preferred and preference stock, American Depositary Receipts, European Depositary Receipts, Global Depositary Receipts, and exchange-traded funds that invest in emerging markets securities.

YTD Return*
$12.86, +0.08
December 31, 2009
Minimum Investment
Sales Charge
Net Expense Ratio
*As of July 23, 2019

Strategy overview

The portfolio managers discuss our International Opportunities strategy.

Portfolio managers

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


QTD YTD 1 year3 years5 years Since inception
Fund 1.3%11.7%-3.2%8.1%1.0%5.2%
MSCI ACWI ex US 3.2%14.0%1.8%9.9%2.6%5.0%
QTD YTD 1 year3 years5 years Since inception
Fund 1.3%11.7%-3.2%8.1%1.0%5.2%
MSCI ACWI ex US 3.2%14.0%1.8%9.9%2.6%5.0%
QTD YTD 1 year3 years5 years Since inception
Fund 1.3%11.7%-3.2%8.1%1.0%5.2%
MSCI ACWI ex US 3.2%14.0%1.8%9.9%2.6%5.0%
QTD YTD 1 year3 years5 years Since inception
Fund 1.3%11.7%-3.2%8.1%1.0%5.2%
MSCI ACWI ex US 3.2%14.0%1.8%9.9%2.6%5.0%
Fund -18.4%29.6%2.0%-6.1%-3.7%17.8%24.6%-12.6%15.4%
MSCI ACWI ex US -13.8%27.8%5.0%-5.3%-3.4%15.8%17.4%-13.3%11.6%

Portfolio (as of June 30, 2019)

Benchmark: MSCI ACWI ex US
Asset Allocation
Stocks 97.0%
Cash 3.0%
Fund Characteristics
Fund Benchmark
No. of holdings 201 2205
Weighted avg. market cap (US $MM) $53,844 $52,318
FY2 price/earnings 9.8 12.5
Price/book value 1.2 1.6
Net assets $182,857,814 -
Security Country Percent
Volkswagen AG Germany 4.1
Takeda Pharmaceutical Co., Ltd. Japan 3.0
Linde Plc Germany 2.7
BASF SE Germany 2.7
Prudential Plc United Kingdom 2.6
UniCredit S.p.A. Italy 2.6
ABB Ltd. Switzerland 2.5
KDDI Corp. Japan 2.4
British American Tobacco plc United Kingdom 2.3
AstraZeneca Plc United Kingdom 2.3

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 Fund Benchmark
Financials 21.6% 21.9%
Industrials 15.1% 11.9%
Materials 10.3% 7.6%
Health Care 9.3% 8.3%
Energy 9.3% 7.1%
Consumer Discretionary 9.0% 11.3%
Information Technology 7.9% 8.5%
Communication Services 6.2% 6.9%
Consumer Staples 5.5% 9.8%
Utilities 2.0% 3.3%
Real Estate 0.8% 3.2%
Country Fund Benchmark
United Kingdom 25.8% 11.2%
Germany 12.8% 5.9%
Japan 11.9% 15.8%
China 8.0% 8.3%
Switzerland 6.6% 6.2%
France 5.1% 7.6%
Canada 4.5% 6.8%
South Korea 3.5% 3.3%
Taiwan 3.0% 2.9%
Netherlands 2.7% 2.4%
Regional Allocation
  • Europe – other 56.9%
  • Emerging Asia 18.1%
  • Pacific 11.9%
  • North America 4.5%
  • Emerging Latin America 2.8%
  • Emerging Europe, Middle East, Africa 2.8%

Commentary (As of June 30, 2019)


  • Bolstered by central bank dovishness, developed and emerging equity markets rallied in June and furthered year-to-date gains.

Portfolio attribution

Causeway International Opportunities Fund ("Fund") modestly underperformed the Index during the month, due primarily to stock selection. Fund holdings in the capital goods, telecommunication services, transportation, and consumer services industry groups, along with an underweight position in the retailing industry group, detracted from relative performance. Holdings in the materials, software & services, automobiles & components, and food & staples retailing industry groups, as well as an underweight position in the real estate industry group, contributed to relative performance. The largest detractor was cruise ship operator, Carnival Plc (United Kingdom). Additional notable detractors included retail bank, Caixabank SA (Spain), jet engine manufacturer, Rolls-Royce Holdings Plc (United Kingdom), baked goods food producer, Aryzta AG (Switzerland), and major passenger railway operator, East Japan Railway Co. (Japan). The top contributor to return was industrial gas company, Linde Plc (Germany). Other notable contributors included automobile manufacturer, Volkswagen AG (Germany), pharmaceutical company, AstraZeneca Plc (United Kingdom), diversified chemicals manufacturer, BASF SE (Germany), and life insurer, Prudential Plc (United Kingdom).

We use a proprietary quantitative equity allocation model that assists the portfolio managers in determining the weight of emerging versus developed markets in the Fund. Our allocation relative to the weight of emerging markets in the Index is currently underweight. We identify five primary factors as most indicative of the ideal allocation target: valuation, quality, earnings growth, macroeconomic, and risk aversion. Valuation is currently neutral for emerging markets in our model. Our quality metrics, which include such measures as profit margins and return on equity, are negative. Our earnings growth and macroeconomic factors are negative for emerging markets. Lastly, our risk aversion factor is negative in our model.

Investment outlook

The 2019 G20 summit struck a tone of geopolitical fragmentation as major relationships worldwide shift and nationalistic sentiment increases. Though we do not believe globalization will reverse, global equity markets appear to disagree with us. Economically defensive stocks have generally reached, in our view, extreme valuation highs, and economically sensitive cyclical stocks have lagged. The decline in bond yields in major economies globally has also dampened investor enthusiasm for cyclicality, and favored long duration growth stocks. When the price of money (aka borrowing) falls to such low levels, investors typically get more desperate to buy growth at increasingly higher valuations. Can central banks, especially the Fed, prolong the post-2008 economic expansion by ultra-accommodative monetary policy? And if they cannot, how deep a recession would the US and other economies endure? Rather than wait for an economic cycle turn that may or may not occur, we seek to build an “all weather” portfolio not entirely dependent on a return of value’s dominance over growth. Our developed markets research focuses on companies with managements implementing operational improvements that translate to greater efficiency and expansion potential. We believe this operational “self-help” should deliver an improvement in earnings and free cash flow growth. We seek companies returning excess capital to shareholders so that we can reinvest those proceeds. Income (via dividends and share buybacks) has historically been an important component of total return in any interest rate environment.

In the EM portion of the Fund, our price momentum factor continued its resurgence in June and was our strongest performing factor in the second quarter. Heightened uncertainty in financial markets contributed to momentum’s underperformance in prior quarters. While uncertainty remains elevated, we believe that momentum’s recent strong performance is primarily attributable to compelling valuations as the momentum factor had, in our view, become oversold.


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. Investing in ETFs is subject to the risks of the underlying funds. Investments in smaller companies typically exhibit higher volatility. Asset allocation may not protect against market risk.


Dividends Short-term capital gains Long-term capital gains
2018 $0.2904 $0.0000 $0.0327
2017 $0.2145 $0.0000 $0.0000
2016 $0.4494 $0.0000 $0.0000
2015 $0.1623 $0.0107 $0.0199
2014 $0.0000 $0.0000 $0.4943
2013 $0.1266 $0.0001 $0.0739
2012 $0.2451 $0.0000 $0.0190
2011 $0.2756 $0.0000 $0.0303
2010 $0.1858 $0.0000 $0.1712

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).


Fund information: