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 25% 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 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.
- Nav*
- £13.29
- Inception
- February 02, 2021
- ISIN
- IE00BJP5PN06
- Benchmark
- MSCIACWI
- Minimum investment
- £1,000,000
- Total expense ratio
- 0.67%
Portfolio managers
Brian Woonhyung Cho
Mr. Cho is a fundamental portfolio manager at Causeway. He joined the firm in September 2013 and has been a portfolio manager since January 2021. His current responsibilities include coverage of companies in the technology and communication services sectors.
From 2011 to 2013, Mr. Cho was a vice president at BofA-ML Equity Research, covering the IT hardware and supply chain sector. From 2007 to 2011, he worked as an associate at Goldman Sachs Equity Research covering the same sector. From 2006 to 2007, he worked as an analyst at Morgan Stanley Equity Research covering the internet and interactive software sector. Prior to that, he worked as an analyst at PA Consulting Group in the financial services practice.
Mr. Cho earned a BSc in management science from Massachusetts Institute of Technology.
Read our interview with Brian about value investing in the technology sector.
Jonathan Eng
Mr. Eng is a director and fundamental portfolio manager at Causeway and is responsible for investment research in the global consumer discretionary, industrials, and energy sectors. He joined the firm in July 2001 and has been a portfolio manager since February 2002.
From 1997 to 2001, Mr. Eng was an equity research associate for the Hotchkis and Wiley division of Merrill Lynch Investment Managers (HW-MLIM). In 1996, Mr. Eng worked as a summer research associate for Hotchkis and Wiley, performing U.K. and European equity research. From 1993 to 1995, Mr. Eng analyzed merger and acquisition candidates at Slusser Associates. From 1990 to 1993, Mr. Eng worked as a middle market corporate lender for Bank of Boston.
Mr. Eng earned a BA in history and economics from Brandeis University and an MBA from the UCLA Anderson Graduate School of Management
Harry Hartford
Head of Fundamental Research
Fundamental Portfolio Manager
Mr. Hartford is the president at Causeway, fundamental portfolio manager, and head of fundamental research. Mr. Hartford co-founded the firm in June 2001 and is a member of the operating committee.
From 1996 to June 2001, Mr. Hartford was a managing director for the Hotchkis & Wiley division of Merrill Lynch Investment Managers (HW-MLIM) and co-head of the firm's HW-MLIM international and global value team. From 1994 to 1996, Mr. Hartford was a portfolio manager for Hotchkis and Wiley. From 1984 to 1994, Mr. Hartford was with The Investment Bank of Ireland, where he gained ten years’ experience in both international and global equity management. During this time, Mr. Hartford also managed the Irish Investment Fund, a closed-end country fund quoted on the NYSE. Before entering the investment business, Mr. Hartford lectured in micro and macroeconomics at Oklahoma State University.
Mr. Hartford earned a BA, with honors, in economics from the University of Dublin, Trinity College, an MSc in economics from Oklahoma State University, and is a Phi Kappa Phi member. Mr. Hartford is a member of The Ireland Funds America Board of Directors.
Sarah Ketterer
Fundamental Portfolio Manager
Ms. Ketterer is the chief executive officer at Causeway, fundamental portfolio manager, and is responsible for investment research across all sectors. Ms. Ketterer co-founded the firm in June 2001 and is a member of the operating committee.
From 1996 to 2001, Ms. Ketterer worked for the Hotchkis & Wiley division of Merrill Lynch Investment Managers (HW-MLIM). At HW-MLIM, she was a managing director and co-head of the firm's HW-MLIM International and Global Value team. From 1990 to 1996, Ms. Ketterer was a portfolio manager at Hotchkis & Wiley, where she founded the International Equity product.
Ms. Ketterer earned a BA in economics and political science from Stanford University and an MBA from the Tuck School, Dartmouth College. Ms. Ketterer serves on the Stanford University Board of Trustees, is a member of UT Southwestern President’s Advisory Board, is on the advisory board of Portal Schools, and is a supporter of Girls Who Invest. She previously served as a board member and chair of the Los Angeles World Affairs Council and Town Hall and chair of the investment committee of the Music Center Foundation.
Ellen Lee
Ms. Lee is a director and fundamental portfolio manager at Causeway and is responsible for investment research in the global consumer and utilities sectors. Prior to the current role, she also covered transportation and autos. She joined the firm in August 2007 and has been a portfolio manager since January 2015.
During the summer of 2006, Ms. Lee interned at Tiger Asia, a long short equity hedge fund focused on China, Japan, and Korea. From 2001 to 2004, Ms. Lee was an associate in the mergers and acquisitions division of Credit Suisse First Boston in Seoul, where she advised Korean corporates and multinational corporations. From 1999 to 2000, she was an analyst in the mergers and acquisitions division of Credit Suisse First Boston in Hong Kong.
Ms. Lee earned a BA in business administration from Seoul National University and an MBA from the Stanford Graduate School of Business. She currently serves on the audit and investment committee at the Center for Early Education in West Hollywood.
Read our profile of Ellen .
Conor Muldoon, CFA
Mr. Muldoon is a director and fundamental portfolio manager at Causeway and is responsible for investment research in the global financials and materials sectors. He joined the firm in August 2003 and has been a portfolio manager since September 2010. He is also a member of the operating committee.
From 1995 to 2003, Mr. Muldoon was an investment consultant for Fidelity Investments where he served as a liaison between institutional clients and investment managers within Fidelity. He was responsible for communicating current information on the financial markets, the economy and investment performance.
Mr. Muldoon earned a BSc and an MA from the University of Dublin, Trinity College and an MBA, with high honors, from the University of Chicago. Mr. Muldoon was inducted into the Beta Gamma Sigma honors society and is also a CFA charterholder.
Steven Nguyen, CFA
Mr. Nguyen is a director and fundamental portfolio manager at Causeway and is responsible for investment research in utilities & renewables, healthcare, and business services. He joined the firm in April 2012 and has been a portfolio manager since January 2019.
From 2006 to 2012, Mr. Nguyen was a senior credit analyst at Bradford & Marzec covering high yield and investment grade companies in the telecommunication services, cable, media, gaming, insurance, and REIT industries. From 2003 to 2006, Mr. Nguyen was a credit analyst/portfolio manager in the corporate bond department of Allegiance Capital.
Mr. Nguyen earned a BA in business economics from Brown University and an MBA, with honors, from the UCLA Anderson School of Management. Mr. Nguyen was the president of the Anderson Student Asset Management association. Mr. Nguyen is a CFA charterholder and has completed the CFA Institute Certificate in ESG Investing program.
Alessandro Valentini, CFA
Mr. Valentini is a director and fundamental portfolio manager at Causeway and is responsible for investment research in the global healthcare, financials, and real estate sectors. He joined the firm in July 2006 and has been a portfolio manager since April 2013.
During the summer of 2005, Mr. Valentini worked as a research analyst at Thornburg Investment Management, where he conducted fundamental research for the International Value Fund and the Value Fund, focusing on the European telecommunication and Canadian oil sectors. From 2000 to 2004, Mr. Valentini worked as a financial analyst at Goldman Sachs in the European equities research-sales division in New York.
Mr. Valentini earned an MBA from Columbia Business School, with honors, an MA in economics from Georgetown University and a BS, magna cum laude, from Georgetown University. Mr. Valentini was inducted into the Beta Gamma Sigma honors society, is a Phi Beta Kappa member, and is a CFA charterholder.
Performance
The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth less than their original cost and current performance may be lower than the performance quoted. Returns greater than one year are average annual total returns. All information is as of the date shown. Investment performance reflects the Investment Manager’s voluntary undertaking to limit ongoing charges during certain periods. In the absence of such voluntary undertaking, total return would be reduced. MSCI has not approved, reviewed or produced this report, makes no express or implied warranties or representations and is not liable whatsoever for any data in the report. You may not redistribute the MSCI data or use it as a basis for other indices or investment products.
Portfolio (as of July 31, 2023)
Asset Allocation
| Fund | |
|---|---|
| Stocks | 97.7% |
| Cash | 2.3% |
Fund Characteristics
| Fund | Benchmark | |
|---|---|---|
| Holdings | 54 | 2934 |
| Weighted avg. market cap (GBP £MM) | £105,170 | £403,609 |
| FY2 price/earnings | 12.2 | 15.9 |
| Price/book value | 1.9 | 2.8 |
| Net assets | £4,240,690.17 | - |
TOP 10 HOLDINGS
| Security | Country | Percent |
|---|---|---|
| Rolls-Royce Holdings Plc | United Kingdom | 5.6% |
| Samsung Electronics Co., Ltd. | South Korea | 3.9% |
| Alphabet, Inc. | United States | 3.3% |
| SAP SE | Germany | 2.9% |
| Enel SpA | Italy | 2.7% |
| BP Plc | United Kingdom | 2.5% |
| UniCredit S.p.A. | Italy | 2.5% |
| Alstom SA | France | 2.4% |
| Fiserv, Inc. | United States | 2.4% |
| Murata Manufacturing Co. Ltd. | Japan | 2.4% |
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 Technology | 21.9% | 21.9% |
| Industrials | 15.0% | 10.5% |
| Health Care | 12.5% | 11.6% |
| Financials | 11.6% | 15.6% |
| Communication Services | 8.5% | 7.5% |
| Consumer Staples | 8.0% | 7.2% |
| Materials | 5.9% | 4.6% |
| Energy | 4.8% | 4.7% |
| Utilities | 4.6% | 2.7% |
| Consumer Discretionary | 3.4% | 11.4% |
| Real Estate | 1.4% | 2.3% |
TOP 10 COUNTRIES
| Country | Strategy | Benchmark |
|---|---|---|
| United States | 36.6% | 61.9% |
| United Kingdom | 18.3% | 3.6% |
| France | 11.4% | 3.0% |
| South Korea | 5.7% | 1.3% |
| Italy | 5.1% | 0.6% |
| Japan | 4.4% | 5.5% |
| Switzerland | 4.0% | 2.5% |
| Netherlands | 3.9% | 1.1% |
| Germany | 3.8% | 2.1% |
| Ireland | 1.5% | 0.2% |
Regional Allocation
- Europe – other 49.3%
- North America 36.6%
- Emerging Asia 6.8%
- Pacific 4.4%
- Emerging Latin America 0.5%
Documents
Fund information:
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Consent to electronic delivery
By clicking Submit, you consent to the electronic delivery, via download from this website, of the Causeway Fund's prospectuses, privacy policies, account applications, IRA Disclosure Statement(s), IRA Custodial Agreement(s) and any other materials that may be required in connection with the information you requested, on the terms set forth below. You also agree to read these documents before investing, and agree to the terms contained in these documents, particularly the prospectus.
ACCESS TO ONLINE DOCUMENTS
To view and print the documents, you will need Adobe Acrobat Reader. If you do not have Acrobat Reader, you can download it for free at www.adobe.com. If you are unable to download, view, or print the documents, contact Causeway Funds at 866-947-7000 for assistance or to request a free paper copy of any of these documents.
Commentary (As of June 30, 2023)
Highlights
Portfolio Attribution
The Causeway Global Value UCITS Fund ("Fund"), on a net asset value basis, underperformed the Index during the month, due primarily to country allocation (a byproduct of our bottom-up stock selection process). On a gross return basis, Fund holdings in the technology hardware & equipment and consumer services industry groups, along with an underweight position in the automobiles & components industry group, detracted from relative performance. Holdings in the banks, health care equipment & services, and software & services industry groups offset some of the underperformance compared to the Index. The largest detractor was airport & rail station concessionaire, SSP Group Plc (United Kingdom). Additional notable detractors included technology conglomerate, Alphabet, Inc. (United States), and electronic components manufacturer, Murata Manufacturing Co. Ltd. (Japan). The top contributor to return was banking & financial services company, UniCredit S.p.A.(Italy). Other notable contributors included jet engine manufacturer, Rolls-Royce Holdings Plc (United Kingdom), and financial services technology company, Fiserv, Inc. (United States).
Economic Outlook
Despite robust labor markets in the US and euro area, supply chain improvements and weak energy prices may lead consumer price inflation to peak in these regions. The US personal consumption expenditures index for May shows softening year-over-year rates of headline and core (excluding food and energy) inflation of 3.8% and 4.6%, respectively. Euro area annual consumer price inflation for June, as measured by Eurostat’s harmonised index of consumer prices, declined to 5.5% from 6.1% the month prior (although core inflation rose slightly). Consumer pricing relief could give both central banks some flexibility for future rate rises. In contrast, persistent UK inflation has compelled the Bank of England to continue raising rates and a higher-for-longer interest rate environment appears likely. The US, Europe, and UK have inverted yield curves, shrinking money supply, and central banks determined to reduce assets, conditions we believe are likely to trigger recessions next year, if not sooner. Policymakers at the Bank of Japan have repeatedly stated they will maintain ultra-loose policy until wage growth sustains inflation around their 2% target.
Economic data from China suggests the surge of consumer spending that led the economy’s Covid reopening has subsided. Chinese industrial activity also has slowed: the June reading of China's official manufacturing purchasing managers' index fell to 49, indicating contraction. The People’s Bank of China cut policy interest rates in June and the government currently appears likely to deploy targeted fiscal stimulus, but real gross domestic product growth in China may slow to 3% or less in 2024.
Investment Outlook
A deceleration in global economic growth implies downward earnings pressure later this year, which, combined with diminishing levels of liquidity from most major monetary authorities (ex-China), suggests a cautious outlook for stocks globally. Uncertainty about the trajectory of interest rates and economic activity may engender volatility into global equity markets, providing fertile ground for a team dedicated to unearthing mispriced securities using a disciplined, patient investment approach. Causeway’s stock-selection process continues to seek attractively valued investment candidates.
We are finding, in our view, bargains in companies that are misunderstood or in out-of-favor industries, including insurance, chemicals, and consumer non-durables (frequently purchased goods). Financials stocks appear priced for rising bad debts, although valuations do not currently suggest a severe credit event ahead. We believe the generative artificial intelligence frenzy has not fully recognized the upside potential in some memory semiconductor companies, beneficiaries of a digital future requiring demonstrably more computational power. Our efforts to add economically defensive stocks with low market correlation to client portfolios have reduced portfolio prospective betas from levels of the past few years. We intend to protect capital in market weakness and participate in improved company profitability.
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.