LOS ANGELES--(BUSINESS WIRE)--Causeway Capital Management LLC ("Causeway") today announced the launch of Causeway Global Absolute Return Fund, a global fund that intends to have long and short exposures to common and preferred stocks primarily in developed markets worldwide. The no-load, open-end fund will be available to retail investors (CGAVX) with a minimum initial investment of $5,000 and institutional investors (CGAIX) with an initial minimum of $1 million.
Causeway Global Absolute Return Fund seeks long-term growth of capital with low or no correlation to the MSCI World Index (the "World Index"). Causeway will use its fundamental global value equity strategy to manage the Fund's long exposures and its quantitative investment strategy to manage the Fund's short exposures. The dollar amount of the Fund’s long exposures will generally be equivalent to the dollar amount of its short exposures, by which the Fund will seek to generate returns that have low or no correlation to the World Index and lower volatility than the World Index. The Fund will use swap agreements to obtain exposures to long and short positions in securities, and will use leverage.
"Causeway Global Absolute Return Fund offers investors an innovative long/short mutual fund that uses proven Causeway skill sets – our global value stock selection on the long side to find stocks expected to appreciate over the long-term and our quantitative strategy on the short side to identify stocks that are expected to underperform the World Index," said Sarah Ketterer, chief executive officer of Causeway Capital Management LLC. "We believe blending fundamental and quantitative investment strategies is the most effective way to run a global long/short absolute return portfolio. We will also use leverage to seek to increase the Fund's alpha potential."
Causeway Global Absolute Return Fund will be managed by a team comprised of Ms. Ketterer, Causeway's president Harry Hartford, and portfolio managers James A. Doyle, Jonathan P. Eng, Kevin Durkin, Conor Muldoon, Arjun Jayaraman and MacDuff Kuhnert.
With the addition of Causeway Global Absolute Return Fund, Causeway Capital Management LLC now manages five mutual funds, including Causeway International Value Fund, Causeway Emerging Markets Fund, Causeway Global Value Fund, and Causeway International Opportunities Fund.
About Causeway Capital Management LLC
Established in 2001, Los Angeles-based Causeway Capital Management LLC provides investment management services to corporations, pension plans, public retirement plans, Taft-Hartley pension plans, endowments and foundations, mutual funds, charities, private trusts and funds, wrap fee programs, and other institutions. Specializing in international and global value equity strategies, Causeway uses team-based, value-driven investment disciplines that combine in-depth research and analysis, active portfolio construction, and disciplined risk management. Causeway also manages a quantitative emerging markets equity strategy. The firm, majority owned by its employees, managed approximately $12.2 billion in total assets as of December 31, 2010. More information on the Causeway Funds, and the firm’s investment philosophy and team is available online at www.causewayfunds.com.
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.
The Fund is not appropriate for all investors. The Fund uses swap agreements to obtain long and short exposures to securities. Swaps are derivatives which involve the use of leverage, and the Fund will leverage its total long and short exposures up to four times its net asset value. The use of leverage is speculative and will magnify any losses. Short positions will lose money if the price of the underlying security increases, and losses on shorts are therefore potentially unlimited. The use of swap agreements involves significant swap expenses including financing charges and transaction costs which will reduce investment returns and increase investment losses. The Fund risks loss of the amount due under a swap agreement if the counterparty defaults. The Fund intends initially to use a single counterparty, which will focus its exposure to the credit risk of that counterparty. Swap agreements involve liquidity risks since the Fund may not be able to exit security exposures immediately, particularly during periods of market turmoil. The Fund expects to re-set swap agreements at least monthly which will cause it to realize short-term capital gains which will generally be taxable to shareholders at higher ordinary income rates. While the total dollar amounts of long and short exposures are expected to be approximately equal, the global long portfolio and the global short portfolio will be managed using different styles and, as a result, will have exposures that will not be hedged. This is not a complete list of the Fund’s risks. See the Fund’s prospectus for additional information on risks.
To determine if Causeway Global Absolute Return Fund is an appropriate investment for you, carefully consider the Fund's investment objectives, risk factors, charges and expenses before investing. This and other information can be found in the Fund's prospectus, which may be obtained by calling 1-866-947-7000 or visiting our website at www.causewayfunds.com. Read it carefully before investing.
There is no guarantee that the Fund will meet its stated objective. The Fund is available to U.S. investors only.
Causeway Global Absolute Return Fund is distributed by SEI Investments Distribution Co. (SIDCO). SIDCO is not affiliated with Causeway Capital Management LLC.