Skip to Content
US Videos

An Aggressive Gold-Rated International Stock Fund

Causeway International Value does not provide much downside protection but has a disciplined value approach.

Mentioned:

Andrew Daniels: Gold-rated Causeway International Value benefits from a deep and talented investment staff as well as a disciplined value approach. 

The managers seek non-U.S. firms that are facing operational, but not financial, distress. Causeway's fundamental analysts dive into prospective holdings--meeting with management teams, conducting competitor analyses, and building valuation models--before assigning each with a two-year price target. The firm's quant team helps to offset company-specific risk with a risk overlay that weighs expected return against potential volatility. Management then buys the names that look most attractive on a risk-adjusted basis, and holds on for the long term. 

The fund has done quite well throughout the years. Since its October 2001 inception, through November 2017, its 8.2% annualized gain beats the MSCI EAFE Index's 6.6% gain as well as 86% of its foreign large-value peers. 

While the fund is a great option for international equity exposure, this is an aggressive strategy, and investors should not expect it to provide much downside protection.

Andrew Daniels does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.