4
Morningstar Analyst Rating
11-15-13
Œ
Morningstar Pillars
Process
Performance
People
Parent
Price
§
Positive
Positive
Positive
Positive
Negative
Morningstar Analyst Rating
Morningstar evaluates mutual funds based on five key pillars, which
its analysts believe lead to funds that are more likely to outperform
over the long term on a risk-adjusted basis.
Analyst Rating Spectrum
Œ „ ´ˇ ¨
Pillar Spectrum
Positive
§
Negative
¶
Neutral
NAV
16.07
10.73
12.43
11.25
8.65
16.67
19.70
16.52
16.17
13.36
9.36
10.66
Total Return %
23.90
-10.79
11.98
32.01
-42.06
7.64
25.74
7.87
26.31
45.53
-11.18
.
+/-MSCI WexUS
8.61
-27.62
25.69
20.86
-83.51
53.17
9.09
-18.78
9.69
24.62
-52.01
.
+/-MSCI WexUS
8.61
-27.62
25.69
20.86
-83.51
53.17
9.09
-18.78
9.69
24.62
-52.01
.
Income Return %
1.01
2.85
1.44
1.93
2.88
2.06
1.12
2.08
1.78
1.73
0.61
.
Capital Return %
22.89
-13.64
10.54
30.08
-44.94
5.58
24.62
5.79
24.53
43.80
-11.79
.
Total Rtn % Rank Cat
2
21
12
36
41
67
57
95
13
17
36
.
Income $
0.13
0.35
0.16
0.17
0.48
0.41
0.19
0.34
0.24
0.16
0.07
0.01
Capital Gains $
0.00
0.00
0.00
0.00
0.45
4.00
0.89
0.58
0.45
0.09
0.04
0.00
Expense Ratio %
1.20
1.58
1.61
1.56
1.55
1.51
1.48
1.47
1.52
. . .
Income Ratio %
1.84
-0.58
-1.26
-1.06
-1.01
-0.89
-0.61
-0.90
-0.70
. . .
Turnover Rate %
22
234
202
304
244
381
591
462
1178
. . .
Net Assets $mil
742
32
30
63
43
12
34
16
53
18
. .
Performance
12-31-13
1st Qtr
2nd Qtr
3rd Qtr
4th Qtr
Total
2009
2010
2011
2012
2013
-15.61 25.34 22.73 1.68 -42.06
3.64 -13.81 17.11 7.03 32.01
5.87 1.67 -22.12 6.41 11.98
15.56 -7.02
8.50 6.55 -10.79
1.38 2.56 11.99 6.41 24.23
Trailing
Total +/- MSCI
+/- MSCI
%Rank Growth of
Return% WexUS WexUS
Cat
$10,000
3 Mo
6 Mo
1 Yr
3 Yr Avg
5 Yr Avg
10 Yr Avg
15 Yr Avg
6.41 1.64
1.64
38 10,641
19.16 3.82
3.82
13 11,916
23.90 8.61
8.61
15 12,390
11.15 6.01
6.01
4 13,732
15.21 2.40
2.40
9 20,298
8.05 0.48
0.48
25 21,689
. . . . .
Tax Analysis
Tax-Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated)
5 Yr (estimated)
10 Yr (estimated)
10.35
3
0.72
67
14.55
6
0.57
56
6.51
32
1.43
86
Potential Capital Gain Exposure: 8% of assets
Rating and Risk
Time Load-Adj
Morningstar
Morningstar
Morningstar
Period Return % Rtn vs Cat
Risk vs Cat
Risk-Adj Rating
1 Yr
23.90
3 Yr
11.15
High
+Avg
5 Yr
15.21
High
High
10 Yr
8.05
+Avg
High
Incept
9.41
Other Measures
Standard Index
Best Fit Index
MSCI WexUS
MSCI Eur
Alpha
5.6
1.9
Beta
1.02
0.91
R-Squared
92
95
Standard Deviation
17.53
Mean
11.15
Sharpe Ratio
0.69
Morningstar’s Take
by Kevin McDevitt, CFA 11-15-13
Causeway International Value is showing that it can
succeed in any environment.
Consistently good stock selection continues to be
this fund’s greatest strength. That’s apparent because
of the portfolio-level weightings that should’ve hurt it.
The fund is on pace for its fourth consecutive
top-quartile calendar-year return despite several
strikes against it. Relative to the MSCI EAFE Index, the
portfolio has an underweighting in Japan, one of the
better-performing big markets in 2013, with 12.8% of
assets there versus EAFE’s 21.6%. Plus, the team’s
bottom-up investment process has led it to overweight
the struggling energy and materials sectors.
But materials stocks have been the fund’s strongest
source of returns in 2013. Top-holding chemical
company Akzo Nobel has gained 40% through the 12
months ended Nov. 7, 2013. Notably, most of the
fund’s materials holdings are industrial companies
rather than floundering miners.
Effectively managing risk has played just as large of
a role in the fund’s year-to-year consistency. In 11
calendar years, the fund has landed in its category’s
bottom quartile just once. Although the team’s
contrarian nature ensures that the fund’s volatility will
remain above average, it has done a masterful job of
knowing when to dial risk up or down. Management’s
risk assessments are based on expected returns and
historical volatility for the stocks on its watchlist. As
expected returns diminish, the team tends to reduce
portfolio volatility as measured by beta. The team took
the portfolio’s beta below 1.0 during the financial
crisis in 2008 and increased it in early 2009 as
valuations improved. With expected returns continuing
to fall, the team has cut beta to about 1.0.
Despite its consistency, the fund will go through
stretches of poor performance. The team is happy to
dial up risk and buy beleaguered stocks when
expected returns are high. This can add to short-term
volatility. There are few such holdings these days, but
the portfolio does have a decidedly cyclical tilt. But
this fund has shown over more than a decade that any
extra volatility has been worth it.
Address:
11111 Santa Monica Blvd
Los Angeles, CA 90025
866-947-7000
Web Address:
Inception:
10-26-01
Advisor:
Causeway Capital Management LLC
Subadvisor:
None
NTF Plans:
Fidelity Retail-NTF, CommonWealth NTF
Minimum Purchase:
$5000
Add: $0 IRA: $4000
Min Auto Inv Plan:
$5000
Add: $100
Sales Fees:
No-load, 2.00%R
Management Fee:
0.80%, 0.06%A
Actual Fees:
Mgt:0.80% Dist:
.
Expense Projections:
3Yr:$393
5Yr:$681 10Yr:$1500
Income Distribution:
Annually
Data through December 31, 2013
Causeway International Value Inv
Ticker
Status Yield Total Assets
Mstar Category
CIVVX Open
0.8% $4,740 mil
Foreign Large Blend
97% 98% 99% 98% 99% 95% 99% 96% 95%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 12-13
Historical Profile
Return
Risk
Rating
High
High
Above Avg
Investment Style
Equity
Stock %
Manager Change
Partial Manager Change
Growth of $10,000
Investment Values of
Fund
Investment Values of
MSCI WexUS
Performance Quartile
(within Category)
History
10.0
7.0
14.0
18.0
22.8
26.8
Portfolio Analysis
09-30-13
Share change since 06-13 Total Stocks:63 Sector
Country
% Assets
Akzo Nobel NV
Basic Mat
Netherlands
3.68
Reed Elsevier NV
Cnsmr Cyc Netherlands
3.39
KDDI Corp.
Comm Svs Japan
2.87
Siemens AG
Industrl
Germany
2.81
Toyota Motor Corp
Cnsmr Cyc Japan
2.77
Novartis AG
Hlth care Switzerland
2.76
Sanofi
Hlth care France
2.71
British American Tobacco
Cnsmr Def
U.K.
2.54
Daimler AG
Cnsmr Cyc Germany
2.48
HSBC Holdings PLC
Finan Svs U.K.
2.42
Tesco PLC
Cnsmr Def
U.K.
2.39
Vodafone Group PLC
Comm Svs U.K.
2.36
BNP Paribas
Finan Svs France
2.36
UBS AG
Finan Svs Switzerland
2.35
Roche Holding AG
Hlth care Switzerland
2.04
JGC Corp.
Industrl
Japan
2.03
Total SA
Energy
France
1.97
Imperial Oil Ltd
Energy
Canada
1.95
Lloyds Banking Group PLC
Finan Svs U.K.
1.88
Legrand SA
Technology France
1.86
Current Investment Style
Market Cap %
Giant
59.3
Large
35.0
Mid
5.7
Small
0.0
Micro
0.0
Avg $mil:
39,830
Value Blnd Growth
Large Mid Small
Country Exposure
% Stock
U.K.
26
Japan
13
France
13
Germany
11
Switzerland 11
Regional Exposure
% Stock
UK/W. Europe 77
Japan
13
Asia X Japan 7
N. America 2
Latn America 0
Other
1
Sector
Weightings
% of
Stocks
Rel MSCI
WexUS High
3 Year
Low
Cyclical 43.72
.
BasicMat 10.40
.
11 8
CnsmrCyc12.59
.
16 13
FinanSvs 20.73
.
21 17
Real Est 0.00
. . .
Sensitive 38.29
.
CommSrvs 6.17
.
6 3
Energy 13.98
.
14 7
Industrl 13.15
.
31 13
Technlgy 4.99
.
5 1
Defensive18.00
.
CnsmrDef 6.81
.
9 3
Hlthcare 9.33
.
10 9
Utilities 1.86
.
3 0
h
r
t
y
u
j
i
o
p
a
k
s
d
f
Composition - Net
(% of Stock)
Cash
4.8
Stocks
95.2
Bonds
0.0
Other
0.0
Foreign
100.0
Growth Measures
% Rel Category
Long-Term Erngs
Book Value
Sales
Cash Flow
Historical Erngs
9.30
2.17
0.93
-9.09
-4.07
0.84
0.77
0.10
NMF
NMF
Value Measures
Rel Category
Price/Earnings
Price/Book
Price/Sales
Price/Cash Flow
Dividend Yield %
13.57
1.60
0.95
4.76
2.87
1.03
1.01
0.97
0.88
1.03
©
2013Morningstar, Inc.All rights reserved.The informationherein is not represented orwarranted tobeaccurate, correct, completeor
timely. Pastperformance is no guarantee of future results.Access updated reportsat
Toorder reprints, call312-696-6100.
mfb.morningstar.com.
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