Global Value Equity Seeking value primarily in developed markets worldwide The global value portfolio is constructed from an equity universe composed of companies with market capitalizations typically greater than $1 billion located throughout the global developed and emerging market countries. Through rigorous, bottom-up company analysis, we seek to identify undervalued stocks with upside potential. The investment process comprises three stages: quantitative screening and initial analysis, fundamental research and portfolio construction. BENCHMARK MSCI ACWI INCEPTION September 30, 2001 Download Profile Sheet Download Flash Report Download Quarterly Review Contact Us Strategy overview The portfolio managers discuss our Global Value strategy. Portfolio managers Brian Cho Fundamental Portfolio Manager Jonathan Eng Fundamental Portfolio Manager Harry Hartford President Head of Fundamental Research Fundamental Portfolio Manager Sarah Ketterer Chief Executive Officer Fundamental Portfolio Manager Ellen Lee Fundamental Portfolio Manager Conor Muldoon, CFA Fundamental Portfolio Manager Steven Nguyen, CFA Fundamental Portfolio Manager Alessandro Valentini, CFA Fundamental Portfolio Manager Performance Month end (as of October 31, 2021) Quarter end (as of September 30, 2021) Calendar year QTD YTD 1 year 3 years 5 years 10 years Since inception Strategy (gross) Strategy (net) MSCI ACWI QTD YTD 1 year 3 years 5 years 10 years Since inception Strategy (gross) 1.0% 16.5% 58.6% 10.9% 11.1% 10.6% 10.7% Strategy (net) 0.9% 16.0% 57.8% 10.4% 10.5% 10.0% 10.1% MSCI ACWI 5.1% 17.2% 37.9% 18.1% 15.3% 11.9% 8.9% Account returns for the Causeway Global Value Equity Composite (“Global Composite”) are calculated daily. Monthly account returns are calculated by geometrically linking the daily returns. The return of the Global Composite is calculated monthly by weighting monthly account returns by the beginning market values. Valuations and returns are computed and stated in US dollars. Returns include the reinvestment of interest, dividends and any capital gains. Returns are calculated gross of withholding taxes on dividends, interest income, and capital gains. Past performance is no guarantee of future performance. Gross-of-fees returns are presented before management, performance and custody fees but after trading expenses. Net-of-fees returns are presented after the deduction of actual management fees, performance-based fees, and all trading expenses, but before custody fees. Causeway’s basic management fee schedules are described in its firm brochure pursuant to Part 2 of Form ADV. A complete list and description of firm composites is available upon request. This information supplements the composite presentation at Composite Performance. Effective October 1, 2018, the Global Value Equity Composite’s benchmark changed from the MSCI World Index to the MSCI ACWI Index. The MSCI ACWI Index is a free float-adjusted market capitalization index, designed to measure the equity market performance of developed and emerging markets, consisting of 23 developed country indices, including the U.S, and 24 emerging market country indices. Prior to October 1, 2018, the benchmark index for the Global Value Equity Composite was the MSCI World Index. This Index is a free float-adjusted market capitalization weighted index, designed to measure developed market equity performance, consisting of 23 developed country indices, including the US The Indices are gross of withholding taxes, assume reinvestment of dividends and capital gains, and assume no management, custody, transaction or other expenses. It is not possible to invest directly in an index. Investing involves risk including loss of principal. In addition to the normal risks associated with investing, international investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. Diversification does not prevent all investment losses. Portfolio (as of October 31, 2021) Benchmark: MSCI ACWI ASSET ALLOCATION Strategy Stocks 98.2% Cash 1.8% STRATEGY CHARACTERISTICS Strategy Benchmark No. of holdings 53 2975 Weighted avg. market cap (US $MM) $123,700 $349,757 FY2 price/earnings 14.3 17.6 Price/book value 2.3 3.1 Dividend yield (%) 1.7 1.7 TOP 10 HOLDINGS Security Country Percent Rolls-Royce Holdings Plc United Kingdom 3.9% Alphabet, Inc. United States 3.8% Booking Holdings, Inc. United States 2.9% General Electric Co. United States 2.9% Novartis AG Switzerland 2.9% Genpact Ltd. United States 2.8% Samsung Electronics Co., Ltd. South Korea 2.8% FANUC Corp. Japan 2.7% Fiserv, Inc. United States 2.7% Sanofi France 2.7% 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 Strategy Benchmark Information Technology 21.5% 22.7% Industrials 16.6% 9.6% Financials 13.0% 14.4% Health Care 9.4% 11.5% Materials 9.0% 4.6% Consumer Discretionary 9.0% 12.8% Communication Services 8.4% 9.0% Utilities 5.1% 2.6% Energy 4.6% 3.6% Consumer Staples 1.5% 6.6% Real Estate 0.0% 2.6% TOP 10 COUNTRIES Country Strategy Benchmark United States 50.4% 60.6% United Kingdom 9.5% 3.6% France 7.8% 2.9% Switzerland 7.0% 2.5% Japan 5.8% 5.7% Germany 5.4% 2.2% Italy 3.8% 0.6% South Korea 3.7% 1.4% Spain 2.7% 0.6% Canada 1.6% 2.9% REGIONAL ALLOCATION North America 52.0% Europe – other 36.1% Pacific 5.8% Emerging Asia 5.8% Emerging Latin America 0.5% Commentary (As of October 31, 2021) Highlights Global equities regained momentum in October as progress in vaccination campaigns appeared to have assuaged investor concerns over new mobility restrictions. Though the company management teams we speak with are generally reporting higher input costs, we believe many supply chain issues should be resolved by mid-2022. In our view, if labor retains bargaining power, this may raise unit labor costs. We believe that the level at which inflation expectations get anchored should have the biggest impact on whether inflation is transitory or more permanent. For many of our portfolio companies, we believe the earnings growth outlook is underpinned by pent up demand, strong balance sheets, and structurally lower costs than those prior to the pandemic. Download Flash Report Portfolio attribution The Portfolio underperformed the Index during the month, due primarily to stock selection. Portfolio holdings in the software & services, capital goods, pharmaceuticals & biotechnology, and technology hardware & equipment industry groups, along with an underweight position in the automobiles & components industry group, detracted from relative performance. Holdings in the consumer durables & apparel, utilities, and insurance industry groups, as well as an underweight position in the telecommunication services and household & personal products industry groups, offset some of the underperformance compared to the Index. The largest detractor was Takeda Pharmaceutical Co., Ltd. (Japan). Additional notable detractors included travel & tourism technology company, Sabre Corp. (United States), financial services technology company, Fiserv, Inc.(United States), robotics manufacturer, FANUC Corp. (Japan), and electronic components manufacturer, Murata Manufacturing Co. Ltd. (Japan). The top contributor to return was technology conglomerate, Alphabet, Inc. (United States). Other notable contributors included luxury goods manufacturer & retailer, Compagnie Financière Richemont SA (Switzerland), mortgage insurance provider, Essent Group (United States), specialty chemicals manufacturer, Ashland Global Holdings, Inc.(United States), and semiconductor manufacturer, Broadcom Corp. (United States). Investment outlook Although equity markets reached new highs during the month, we continue to find plenty of opportunities in undervalued stocks. We aim to identify companies poised to deliver improved earnings that can potentially rerate upwards as investors recognize the positive transformation these management teams have delivered. As central banks embark on a monetary tightening cycle to combat inflationary pressures, we expect rising discount rates to act as a headwind for the high-flying valuations of long-duration growth stocks. This should translate into an attractive environment for fundamental, value-oriented research. We have positioned our clients’ portfolios to take advantage of what is, in our view, mispricing in stocks heavily exposed to Covid (e.g., travel, leisure, aerospace, and aviation), balanced with companies in more defensive and cash flow generative industries such as pharmaceutical and utilities. In recent months, we have also increased the portfolio’s energy exposure. Many European integrated oil companies have rationed capital expenditures, diverting investments away from exploration and production towards renewables, leading to a dearth of supply amid the current surging demand. We, therefore, expect oil and gas prices to remain elevated and potentially rise further this winter. For many of our portfolio companies, we believe the earnings growth outlook is underpinned by pent up demand, strong balance sheets, and structurally lower costs than those prior to the pandemic. With many companies resuming dividend payments and share buybacks, we believe income should bolster the total return profile of portfolio holdings in the remainder of 2021 and into 2022. 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 portfolio holdings and characteristics are subject to change. There is no guarantee that any forecasts made will come to pass. The securities identified and described above 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. Past performance does not guarantee future results. For a description of our performance attribution methodology, or to obtain a list showing every holding's contribution to the overall account's performance during the quarter, please contact our product manager, Kevin Moutes, at 310-231-6116 or moutes@causewaycap.com. Funds MUTUAL FUNDS (US INVESTORS) Concentrated Equity Fund Global Value Fund International Value Fund Emerging Markets Fund International Opportunities Fund International Small Cap Fund UCITS (NON-US INVESTORS) Global Value UCITS Fund Emerging Markets UCITS Fund Institutional Strategies Global Value Equity International Value Equity International Value Select Emerging Markets Equity International Opportunities International Small Cap About Us Research Structure People Culture and Diversity News and Press Careers Contact Us Glossary Insights Causeway Analytics Contact Us Documents © 2021 Causeway Capital Management LLC Terms and Conditions of Use Privacy Form ADV Form CRS Relationship Summary Follow us