Seeking value primarily in developed markets worldwide

The Fund invests primarily in common stocks of companies in developed countries located outside the United States and of companies in the United States. Normally, the Fund invests the majority of its total assets in companies that pay dividends or otherwise seek to return capital to shareholders, such as by repurchasing 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 developed countries outside the United States. The Fund is not required to allocate its investments in any specific percentages in any particular countries. The Investment Manager determines the country where a company is located, and thus whether a company is located in a developed country, outside the United States or in an emerging market, by referring to: its stock exchange listing; where it is registered, organized or incorporated; where its headquarters are located; its MSCI Country Classification; where it derives at least 50% of its revenues or profits from goods produced or sold, investments made, or services performed; or where at least 50% of its assets are located. These categories are designed to identify investments that are tied economically to, and subject to the risks of, investing internationally or in emerging markets. The Fund considers a country to be an emerging market if the country is included in the MSCI Emerging Markets Index.

Please see the Prospectus and Supplement for more information. Please contact Marketing@causewaycap.com for a Fund Application.

YTD Return*
+9.89%
Nav*
$ 9.89, +0.06
Inception
August 13, 2015
ISIN
IE00BWT3P530
Benchmark
MSCI ACWI
Minimum investment
$1,000,000
Total expense ratio
0.86%
*As of September 19, 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 yearsSince inception
Fund-6.1%4.2%-10.2%4.1%2.1%
MSCI ACWI-3.8%8.6%-1.9%7.0%5.6%
QTDYTD1 year3 yearsSince inception
Fund-6.1%4.2%-10.2%4.1%2.1%
MSCI ACWI-3.8%8.6%-1.9%7.0%5.6%
201820172016
Fund-11.1%17.8%7.7%
MSCI ACWI-8.7%22.4%7.5%
201820172016
Fund-11.1%17.8%7.7%
MSCI ACWI-8.7%22.4%7.5%

Portfolio (as of August 31, 2019)

Benchmark:
Asset Allocation
Fund
Stocks97.3%
Cash2.7%
Fund Characteristics
FundBenchmark
Holdings 50 2851
Weighted avg. market cap (US $MM)$76,390$138,552
FY2 price/earnings10.514.4
Price/book value1.32.3
Net assets$1,426,391.65-
TOP 10 HOLDINGS
Security Country Percent
Volkswagen AGGermany3.9%
UniCredit S.p.A.Italy3.6%
Takeda Pharmaceutical Co., Ltd.Japan3.5%
BASF SEGermany3.4%
Sabre Corp.United States3.2%
China Mobile Ltd.China3.2%
ABB Ltd.Switzerland2.8%
British American Tobacco plcUnited Kingdom2.7%
Alaska Air Group, Inc.United States2.7%
FANUC Corp.Japan2.5%

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 Technology16.0%16.3%
Financials14.5%16.3%
Industrials13.9%10.4%
Health Care12.2%11.6%
Communication Services12.2%8.9%
Energy8.1%5.3%
Materials7.5%4.7%
Consumer Discretionary4.3%10.9%
Consumer Staples4.0%8.7%
Utilities3.8%3.5%
Real Estate0.8%3.4%
TOP 10 COUNTRIES
Country Strategy Benchmark
United States35.7%56.0%
United Kingdom17.8%4.7%
Japan12.0%7.2%
Germany8.6%2.5%
China5.3%3.7%
South Korea4.4%1.3%
Switzerland4.4%2.8%
Italy3.6%0.7%
France2.0%3.3%
Netherlands1.8%1.1%
Regional Allocation
  • Europe – other 38.2%
  • North America 37.1%
  • Pacific 12.0%
  • Emerging Asia 9.8%
  • 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.
  • 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.
  • Rather than trying to time monetary policy, we are remaining disciplined in our bottom-up valuation process, seeking to identify companies committed to improving free cash flow generation and rewarding shareholders via dividends and buybacks.

Portfolio Attribution

Causeway Global Value UCITS Fund - USD share class ("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.

Documents

Fund information: