Seeking value primarily in the non-US developed markets

The Fund invests primarily in common stocks of companies in developed countries outside the US. Normally, the Fund invests at least 80% of its total assets in stocks of companies in a number of foreign countries and invests the majority of its total assets in companies that pay dividends or repurchase their shares. The Fund may invest up to 15% of its total assets in companies in emerging (less developed) markets.

YTD Return*
+9.70%
Nav*
$14.93, +0.12
Inception
October 26, 2001
Cusip
14949P208
Benchmark
MSCI EAFE
Minimum Investment
$1,000,000
Sales Charge
None
Net Expense Ratio
0.88%
*As of July 23, 2019

Strategy overview

The portfolio managers discuss our International 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

QTD YTD 1 year3 years5 years10 years Since inception
Fund 0.1%10.4%-4.7%6.8%0.5%7.3%6.8%
MSCI EAFE 4.0%14.5%1.6%9.6%2.7%7.4%6.3%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 0.1%10.4%-4.7%6.8%0.5%7.3%6.8%
MSCI EAFE 4.0%14.5%1.6%9.6%2.7%7.4%6.3%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 0.1%10.4%-4.7%6.8%0.5%7.3%6.8%
MSCI EAFE 4.0%14.5%1.6%9.6%2.7%7.4%6.3%
QTD YTD 1 year3 years5 years10 years Since inception
Fund 0.1%10.4%-4.7%6.8%0.5%7.3%6.8%
MSCI EAFE 4.0%14.5%1.6%9.6%2.7%7.4%6.3%
20182017201620152014201320122011201020092008200720062005200420032002
Fund -18.6%27.2%0.4%-3.0%-6.2%24.2%24.5%-10.6%12.3%32.3%-41.9%7.9%26.1%8.1%26.6%45.9%-10.9%
MSCI EAFE -13.4%25.6%1.5%-0.4%-4.5%23.3%17.9%-11.7%8.2%32.5%-43.1%11.6%26.9%14.0%20.7%39.2%-15.7%
Fund
MSCI EAFE
20182017201620152014201320122011201020092008200720062005200420032002
-18.6%27.2%0.4%-3.0%-6.2%24.2%24.5%-10.6%12.3%32.3%-41.9%7.9%26.1%8.1%26.6%45.9%-10.9%
-13.4%25.6%1.5%-0.4%-4.5%23.3%17.9%-11.7%8.2%32.5%-43.1%11.6%26.9%14.0%20.7%39.2%-15.7%

Portfolio (as of June 30, 2019)

Benchmark: MSCI EAFE
Asset Allocation
Fund
Stocks 97.6%
Cash 2.4%
Fund Characteristics
Fund Benchmark
No. of holdings 56 923
Weighted avg. market cap (US $MM) $57,363 $53,321
FY2 price/earnings 10.4 13.0
Price/book value 1.2 1.6
Net assets $6,007,243,208 -
TOP 10 HOLDINGS
Security Country Percent
Volkswagen AG Germany 4.7%
Takeda Pharmaceutical Co., Ltd. Japan 3.7%
Linde Plc Germany 3.2%
UniCredit S.p.A. Italy 3.2%
ABB Ltd. Switzerland 3.1%
BASF SE Germany 3.1%
Prudential Plc United Kingdom 3.1%
China Mobile Ltd. China 3.0%
KDDI Corp. Japan 2.9%
British American Tobacco plc United Kingdom 2.8%

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
Financials 19.9% 18.9%
Industrials 16.4% 14.8%
Communication Services 11.6% 5.4%
Health Care 10.4% 11.2%
Materials 9.4% 7.4%
Energy 9.1% 5.6%
Consumer Discretionary 7.7% 11.1%
Information Technology 6.2% 6.7%
Consumer Staples 5.0% 11.7%
Utilities 2.0% 3.6%
Real Estate 0.0% 3.6%
TOP 10 COUNTRIES
testing
Country Fund Benchmark
United Kingdom 30.5% 16.8%
Germany 15.0% 8.8%
Japan 14.1% 23.7%
Switzerland 8.0% 9.3%
France 6.1% 11.4%
Canada 5.4% 0.0%
China 5.3% 0.0%
South Korea 4.9% 0.0%
Italy 3.2% 2.3%
Netherlands 3.1% 3.6%
Regional Allocation
  • Europe – other 67.4%
  • Pacific 14.1%
  • North America 5.4%
  • Emerging Asia 10.2%
  • Emerging Europe, Middle East, Africa 0.4%

Commentary (As of June 30, 2019)

Highlights

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

Portfolio attribution

Causeway International Value Fund (“Fund”) underperformed the Index during the month. Fund holdings in the capital goods, energy, transportation, and consumer services industry groups, along with an overweight position in the telecommunication services industry group, detracted from relative performance. Holdings in the materials, technology hardware & equipment, and software & services industry groups, as well as an underweight position in the real estate and household & personal products industry groups, contributed to relative performance. The largest detractor was cruise ship operator, Carnival Plc (United Kingdom). Additional notable detractors included retail bank, Caixabank SA (Spain), baked goods food producer, Aryzta AG (Switzerland), oil & natural gas producer, Encana (Canada), and jet engine manufacturer, Rolls-Royce Holdings Plc (United Kingdom). The top contributor to return was industrial gas company, Linde Plc (Germany). Other notable contributors included automobile manufacturer, Volkswagen AG (Germany), diversified chemicals manufacturer, BASF SE (Germany), power & automation technology company, ABB Ltd.(Switzerland), and pharmaceutical company, AstraZeneca Plc (United Kingdom).

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 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.

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.

Distributions

Dividends Short-term capital gains Long-term capital gains
2018 $0.3750 $0.0000 $0.1083
2017 $0.3165 $0.0000 $0.0000
2016 $0.2901 $0.0000 $0.0000
2015 $0.2750 $0.0000 $0.0000
2014 $0.3788 $0.0000 $0.0000
2013 $0.1645 $0.0000 $0.0000
2012 $0.2757 $0.0000 $0.0000
2011 $0.3813 $0.0000 $0.0000
2010 $0.1939 $0.0000 $0.0000
2009 $0.1875 $0.0000 $0.0000
2008 $0.5135 $0.0000 $0.4558
2007 $0.4536 $0.6606 $3.3443
2006 $0.2289 $0.0222 $0.8650
2005 $0.3718 $0.1962 $0.3833
2004 $0.2647 $0.1379 $0.3093
2003 $0.1813 $0.0037 $0.0550
2002 $0.1196 $0.0000 $0.0000
2001 $0.0000 $0.0000 $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: