CGAIX — Causeway Global Absolute Return Fund

CGAIX Fund Overview

CGAIX — Causeway Global Absolute Return Fund is a US mutual fund managed by Causeway Capital Management Trust, categorised as Money Market. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US mutual fund
• Manager: Causeway Capital Management Trust
• Category: Money Market
• Assets under management: $10.81M
• Ticker: CGAIX
• SEC CIK: 0001156906
• SEC series ID: S000030792
• Share class ID: C000095444

CGAIX Investment Objective and Strategy

Causeway Global Absolute Return Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Causeway Capital Management Trust.

Investment objective

The Fund’s investment objective is to seek long-term growth of capital with low or no correlation to the MSCI World Index (the “World Index”).

Principal investment strategy

"The Fund takes long and short exposures to common and preferred stocks of companies primarily in developed countries outside the U.S. and of companies in the U.S. To obtain exposure to long and short positions in securities, the Fund enters into one or more total return equity swap agreements (each, a ""swap agreement""). Although the Fund is permitted to take direct long and short positions in securities, rather than through swap agreements, it does not currently intend directly to purchase or sell securities or directly to hold short positions in securities. The Investment Adviser integrates fundamental and quantitative investment research to manage the Fund's long exposures (the ""long portfolio""). The Investment Adviser uses quantitative research designed to identify short exposures that it expects to underperform the World Index to manage the Fund's short exposures (the ""short portfolio"").

Normally, the Fund's assets (other than the swap agreements) are directly invested primarily in money market funds that are used to support and cover the Fund's obligations under its swap agreements. The Funds net long/short notional exposure will generally not exceed plus or minus 10% of net assets. The Fund?s net long/short notional exposure is the difference between the Fund?s long notional exposures and the Fund?s short notional exposures divided by net assets: long notional exposures ? short notional exposures net assets Limiting the Funds net long/short notional exposure to plus or minus 10% of net assets is designed to seek to achieve low or no correlation to the World Index and lower volatility than the World Index. Limiting net exposure will limit the Funds participation in a market upswing.

In addition, the long portfolio and the short portfolio will each have different exposures under swap agreements that will not be fully hedged. Long Portfolio. The long portfolio of the Fund primarily takes long positions under swap agreements in common and preferred stocks of U.S. and non-U.S. companies, including companies in emerging markets. Normally, the majority of the long portfolio is exposed to companies that pay dividends or repurchase their shares. The Investment Adviser integrates fundamental and quantitative research to manage the long portfolio. Fundamental Research. The fundamental research process uses a value style. The universe of investment candidates is narrowed by applying market capitalization and valuation screens. The Investment Adviser then performs fundamental research, which generally includes company-specific research, company visits, and interviews of suppliers, customers, competitors, industry analysts, and experts.

The Investment Adviser also applies a proprietary quantitative risk model to adjust return forecasts based on risk assessments. Using a value style means that the Investment Adviser seeks to identify stocks that it believes have lower prices than their true worth. For example, stocks may be undervalued because the issuing companies are in industries that are currently out of favor with investors. However, even in those industries, certain companies may have high rates of growth of earnings and be financially sound. The analysis considers whether a company has each of the following value characteristics: Low price-to-earnings ratio (stock price divided by earnings per share) relative to the sector High yield (percentage rate of return paid on a stock in dividends and share repurchases) relative to the market Low price-to-book value ratio (stock price divided by book value per share) relative to the market Low price-to-cash flow ratio (stock price divided by net income plus non-cash charges per share) relative to the market Financial strength Generally, price-to-earnings ratio and yield are the most important factors.

This research generally results in a ranking of between 60 and 100 companies. Quantitative research. The Investment Adviser uses quantitative research to analyze certain financial factors that the quantitative portfolio managers believe are influential in determining whether a security will outperform the World Index. These factors currently include, among others, valuation metrics, earnings growth, technical indicators, financial strength/earnings quality, and the fundamental research ranking described in Long Portfolio Fundamental Research above. Factors and their weightings may change over time as the model is revised and updated. In addition, the fundamental research analysts review the quantitative output to attempt to identify special issues, such as significant corporate actions or management changes, which are difficult to detect quantitatively.

The long portfolio may obtain exposure to companies of any market capitalization, and is not required to have minimum exposures to companies and is not limited to obtaining a maximum exposure to companies in any particular country. Short Portfolio. The short portfolio of the Fund primarily takes short positions under swap agreements in common and preferred stocks of companies in developed countries outside the U.S. and of companies in the U.S. that the Investment Adviser believes will underperform the World Index. If the World Index is increasing, a short position may underperform the World Index and still lose value. The Investment Adviser uses a quantitative investment strategy to identify, increase, or decrease exposures, and to analyze certain financial factors that the portfolio managers believe are influential in determining whether a security will underperform the World Index.

These factors include, among others, valuation metrics, earnings growth, technical indicators, and financial strength/earnings quality. The fundamental research ranking, described in Long Portfolio Fundamental Research above, is not a factor used to identify short positions. In addition to its quantitative research, the Investment Advisers fundamental research analysts review the quantitative outputs to attempt to identify special issues, such as significant corporate actions or management changes, which are difficult to detect quantitatively. Swap Agreements. Under a swap agreement, the Fund pays the other party to the agreement (a swap counterparty) fees plus an amount equal to any negative total returns from stipulated underlying investments identified by the Funds portfolio managers, using the strategies described below.

In exchange, the counterparty pays the Fund an amount equal to any positive total returns from the stipulated underlying investments. The returns to be swapped between the Fund and the swap counterparty are calculated with reference to a notional amount, i.e., the dollar amount hypothetically invested, long or short, in a particular security or group of securities. Under a swap agreement, the Fund pays financing charges to the counterparty based on the notional amount of exposures, and the Fund also pays transaction costs, including brokerage commissions and stamp taxes, when it changes exposures to stipulated underlying investments. The Funds returns will generally depend on the net amount to be paid or received under the swap agreement, which will depend on the market movements of the stipulated underlying securities.

The Funds net asset value per share (NAV) reflects any amounts owed to the Fund by the swap counterparty (when the Funds position under a swap agreement is, on a net basis, in the money) or amounts owed by the Fund to the counterparty (when the Funds position under a swap agreement is, on a net basis, out of the money). The Fund currently enters into swap agreements with one counterparty, but may use additional counterparties. The Fund currently expects to settle swap positions at least monthly, and may do so more frequently. Periodically settling a swap position is intended to limit counterparty risk, however, it will also cause the Fund to realize ordinary income and short-term capital gains, if any, throughout the year that, when distributed to its shareholders, will be taxable to them as ordinary income rather than at lower long-term capital gains rates.

While the Fund currently intends to use only swap agreements, it is also permitted to directly purchase and sell securities. Swap Agreements and Leverage. Normally, the Funds assets (other than the swap agreements) are directly invested primarily in money market funds that are used to support and cover the Funds obligations under its swap agreements. However, the use of a swap agreement allows the Fund to obtain investment exposures greater than it could otherwise obtain with direct investments, allowing it to effectively increase, or leverage, its total long and short investment exposures up to four times its net assets. Exposures Underlying Swap Agreements. The Investment Adviser expects the Fund generally to have long exposures to between approximately 60 and 120 common and preferred stocks of companies and short exposures to between approximately 60 and 140 common and preferred stocks of companies.

Under normal circumstances, at least 40% of the Funds total exposures will be to companies in a number of countries outside the U.S. Up to 20% of the Funds total exposures may include exposures to companies in emerging markets. The Investment Adviser determines a companys country by referring to: the stock exchange where its securities are principally traded; 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. The Fund considers a country to be an emerging market if the country is included in the MSCI Emerging Markets Index. The Fund may have exposures to companies of all sizes and in any industry, and the Fund does not intend to have concentrated exposure to any particular industry, as measured relative to the Funds exposures to all industries.

The use of swap agreements and the ability to use leverage to increase economic exposures relative to the Funds net assets may, however, result in the Fund obtaining greater economic exposures to particular industries than would otherwise be the case and being susceptible to industry-specific market or economic developments."

CGAIX Holdings

Top 7 holdings of Causeway Global Absolute Return Fund by percentage of net assets, from the fund's latest SEC N-PORT filing.

View all CGAIX holdings

CGAIX Portfolio Allocation

Asset-class allocation of Causeway Global Absolute Return Fund by percentage of net assets, from the latest SEC N-PORT filing.

CGAIX Costs and Fees

CGAIX costs about $152 per $10,000 invested per year in fund expenses.

• Net expense ratio: 1.52%
• Gross expense ratio: 1.72%
• Portfolio turnover: 0%
• Brokerage commissions: 0.00 bps of average net assets (SEC N-CEN)

CGAIX Cashflows

Over the 12 months to 2020-03, Causeway Global Absolute Return Fund had net inflows of $30.10M, from monthly SEC N-PORT filings.

CGAIX Debt Constituents

No individual debt constituents are reported in Causeway Global Absolute Return Fund's latest SEC N-PORT filing.

CGAIX Prospectus and SEC Filings

Official Causeway Global Absolute Return Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2020-02-14
• Prospectus (485BPOS) — filed 2019-02-13
• Prospectus (485BPOS) — filed 2018-08-13
• Portfolio holdings (N-PORT) — filed 2020-05-28
• Portfolio holdings (N-PORT) — filed 2020-02-28
• Portfolio holdings (N-PORT) — filed 2019-11-27
• Annual census (N-CEN) — filed 2019-12-16
• Annual census (N-CEN) — filed 2018-12-14

Related Funds

Other Money Market funds tracked on ABC INVEST:

• Emerald Growth Fund (HSPCX)
• Barings Active Short Duration Bond Fund (BXDIX)
• IVA Worldwide Fund (IVWAX)
• Stadion Tactical Growth Fund (ETFDX)
• BBH Partner Fund - Select Short Term Assets (BBSTX)

Data Sources

ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.