(PUB) Investing 2016

151 / 708

5 Morningstar FundInvestor April 2016
Data through March 31, 2016 FINRA members: For internal or institutional use only.
Causeway Emerging Markets Investor Ticker
CEMVX
Yield
1.4%
Total Assets
$2,687 mil
Mstar Category
DiversifiedEmergingMkts
Benchmark 1: MSCI EM NR USD
Benchmark 2: MSCI ACWI Ex USA NR USD
Morningstar Analyst Rating 03-28-16
´
Morningstar Pillars
Process ∞ Positive
Performance ∞ Positive
People ¶ Neutral
Parent ∞ Positive
Price ∞ Positive
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 „ ´ ‰ Á
Pillar Spectrum
∞ Positive § Negative ¶ Neutral
10.0
12.0
14.0
16.0
8.0
6.0
Historical Profile
Return
Risk
Rating
Average
Above Avg
QQQ
Neutral
1 1 1 1 1 1 1 1 Investment Style
Equity
Growth of $10,000
Investment Values of
Fund
Investment Values of
Benchmark 1
) & & * & ( & ( * Performance Quartile
(within Category)
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 03-16 History
. 13.31 5.40 9.86 12.18 9.88 12.15 11.73 11.70 9.66 10.04 NAV
. . -58.52 87.93 26.09 -18.24 25.57 -2.78 1.83 -16.24 3.93 Total Return %
. . -5.19 9.43 7.21 0.19 7.35 -0.17 4.02 -1.32 -1.78 +/- Bmark 1
. . -12.99 46.48 14.93 -4.53 8.74 -18.06 5.70 -10.58 4.31 +/- Bmark 2
. . 0.89 5.24 2.49 0.64 2.56 0.68 2.07 1.23 0.00 Income Return %
. . -59.41 82.69 23.60 -18.88 23.02 -3.45 -0.23 -17.46 3.93 Capital Return %
. . 83 12 13 35 8 57 9 70 46 Total Rtn % Rank Cat
. 0.20 0.12 0.28 0.25 0.08 0.25 0.08 0.24 0.14 0.00 Income $
. 0.40 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 Capital Gains $
. 3.16 1.82 1.98 2.11 1.78 1.63 1.55 1.45 1.46 . Expense Ratio %
. 1.02 1.79 2.61 1.96 2.52 2.46 1.69 1.89 2.55 . Income Ratio %
. 77 100 92 83 95 74 95 112 100 . Turnover Rate %
. 8 2 5 15 29 37 46 57 538 502 Net Assets $mil
Performance 03-31-16
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Total
2012 15.79 -7.95 6.93 10.18 25.57
2013 0.16 -9.61 6.55 0.79 -2.78
2014 0.43 8.06 -2.59 -3.67 1.83
2015 2.91 0.58 -16.93 -2.58 -16.24
2016 3.93 — — — —
Trailing Total
Return%
+/- Bmark
1
+/- Bmark
2
%Rank
Cat
Growth of
$10,000
3 Mo 3.93 -1.78 4.31 46 10,393
6 Mo 1.25 -5.16 -1.61 86 10,125
1 Yr -15.40 -3.37 -6.21 86 8,460
3 Yr Avg -4.88 -0.38 -5.20 53 8,605
5 Yr Avg -2.90 1.23 -3.21 32 8,630
10 Yr Avg — — — — —
15 Yr Avg — — — — —
Tax Analysis Tax Adj Rtn% %Rank Cat Tax-Cost Rat %Rank Cat
3 Yr (estimated) -5.46 50 0.61 62
5 Yr (estimated) -3.45 31 0.56 61
10 Yr (estimated) — — — —
Potential Capital Gain Exposure: -22% of assets
Rating and Risk
Time
Period
Load-Adj
Return %
Morningstar
Rtn vs Cat
Morningstar
Risk vs Cat
Morningstar
Risk-Adj Rating
1 Yr -15.40
3 Yr -4.88 Avg +Avg QQQ
5 Yr -2.90 Avg +Avg QQQ
10 Yr — — — —
Incept 2.19
Other Measures Standard Index Best Fit Index
Alpha -5.0 -1.3
Beta 1.10 1.02
R-Squared 80 97
Standard Deviation 16.76
Mean -4.88
Sharpe Ratio -0.22
Portfolio Analysis 12-31-15
Total Stocks: 128
Share change since 09-30-15 Sector Country % Assets
TSamsung Electronics Co Lt Technology South Korea 3.43
TChina Construction Bank C Finan Svcs China 3.08
YChina Mobile Ltd ADR Comm Svcs China 2.97
THon Hai Precision Ind Co Technology Taiwan 2.34
Korea Electric Power Corp Utilities South Korea 2.24
TChina Petroleum & Chemica Energy China 2.13
Tencent Holdings Ltd Technology China 2.13
TKia Motors Corp Cnsmr Cyc South Korea 1.85
TTaiwan Semiconductor Manu Technology Taiwan 1.84
PICC Property and Casualt Finan Svcs China 1.80
Bank Of China Ltd. H Shar Finan Svcs China 1.70
Polski Koncern Naftowy Or Energy Poland 1.60
Pegatron Corp Technology Taiwan 1.52
TPtt PLC Energy Thailand 1.51
Turkiye Petrol Rafinerile Energy Turkey 1.44
YNetEase Inc ADR Technology China 1.41
YFirstrand Ltd Finan Svcs South Africa 1.27
TSberbank of Russia PJSC A Finan Svcs Russia 1.27
YKB Financial Group Inc Finan Svcs South Korea 1.21
JBS SA Cnsmr Def Brazil 1.16
Current Investment Style
Large Mid Small
Value Blend Growth Market Cap %
Giant 47.1
Large 31.4
Mid 18.0
Small 3.5
Micro 0.0
Avg $mil:
14,022
Value Measures Rel Category
Price/Earnings 8.59 0.69
Price/Book 1.13 0.67
Price/Sales 0.57 0.44
Price/Cash Flow 3.80 0.67
Dividend Yield % 3.61 1.09
Growth Measures % Rel Category
Long-Term Erngs 11.95 0.99
Book Value 5.56 3.87
Sales 3.97 -1.78
Cash Flow 1.91 -0.42
Historical Erngs -22.95 4.74
Composition - Net
Cash 0.1 Bonds 0.0
Stocks 97.1 Other 2.9
Foreign (% of Stock) 100.0
Sector
Weightings
% of
Stocks
Rel
Bmark 1
h Cyclical 35.65 0.79
r BasicMat 6.07 0.78
t CnsmrCyc 5.60 0.57
y FinanSvcs 21.67 0.89
u Real Est 2.31 0.76
j Sensitive 47.54 1.15
i CommSrvs 6.10 0.89
o Energy 11.62 1.63
p Industrl 7.86 1.45
a Technlgy 21.96 1.01
k Defensive 16.81 1.21
s CnsmrDef 8.42 1.07
d Hlthcare 4.75 1.76
f Utilities 3.64 1.10
Regional Exposure % Stock
UK/W. Europe 0 N. America 0
Japan 0 Latn America 10
Asia X Japan 72 Other 18
Country Exposure % Stock
China 26
South Korea 20
Taiwan 12
India 9
Brazil 5
Morningstar's Take by Russel Kinnel 03-28-16
Causeway Emerging Markets has done a fine job applying
quantitative models to emerging markets, earning it a
Morningstar Analyst Rating of Bronze.
Emerging markets throw up a number of hurdles for
quantitative fund managers. Macroeconomic events can
swamp company fundamentals, accounting rules are
different, and value traps abound, with state-owned
enterprises a particular threat. But Causeway’s
quantitative team has an answer for each of those
challenges, and it has come through with strong
performance.
Causeway’s quantitative team is largely separate
from the fundamental team that runs well-known
Causeway International Value CIVVX. The team is headed
by Arjun Jayaraman. MacDuff Kuhnert has comanaged
the fund with Jayaraman since its March 2007 inception.
The team has built an array of models that generally
have helped steer it on the right path. First and foremost
are valuation models that give the fund a clear value tilt
relative to most emerging-markets funds. The emphasis
on modest valuations is tempered with earnings quality
as well as share price and analyst rating momentum in
order to keep the fund out of value traps. These models
account for 75% of the model weighting.
The other 25% are top-down models that factor in
macroeconomic and currency data to avoid moving into
markets that look cheap but face huge headwinds. The
fund also adjusts position sizing in order to get maximum
return for minimum risk.
This group of models was given greater weight in
lightofthe fund’sextremeperformance in2008and2009.
At that time, the fund’s valuation emphasis led it to some
cheapbutvulnerablestocksthatgotcrushed in2008then
rebounded to huge gains in 2009. Since the risk/return
models were dialed up, the fund’s risk profile has
moderated so that it is more in line with the typical
emerging-markets funds’ risk/return profile.
Since its 2007 inception, the fund has modestly
outperformed peers and benchmark on a total return and
risk-adjusted basis. It seems a good bet for continued
long-term results.
Address: Causeway Capital Management Trust Minimum Purchase: $5000 Add: — IRA: $4000
Los Angeles CA 90025 Min Auto Inv Plan: $5000 Add: $100
866-947-7000 Sales Fees: No-load, 2.00%R
Web Address: Management Fee: 1.00%, 0.06%A
Inception: 03-30-07 Actual Fees: Mgt:1.00% Dist:—
Advisor: Causeway Capital Management LLC Expense Projections: 3Yr:$468 5Yr:$808 10Yr:$1768
Subadvisor: None Income Distribution: Annually
©2016Morningstar, Inc.All rights reserved. The information herein is not represented orwarranted to be accurate, complete or timely. Past
performance is no guarantee of future results.Access updated reports at . To order reprints, email ß® Mutual Funds A