UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM N-CSR
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CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
INVESTMENT COMPANY ACT FILE NUMBER 811-10469
CAUSEWAY CAPITAL MANAGEMENT TRUST
(Exact name of registrant as specified in charter)
--------
11111 Santa Monica Boulevard, Suite 1550
Los Angeles, CA 90025
(Address of principal executive offices) (Zip code)
Turner Swan COPIES TO:
Causeway Capital Management LLC Mark D. Perlow
11111 Santa Monica Boulevard Kirkpatrick & Lockhart LLP
Suite 1550 Four Embarcadero Center, 10th Floor
Los Angeles, CA 90025 San Francisco, CA 94111
(Name and address of agent for service)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: 1-866-947-7000
DATE OF FISCAL YEAR END: SEPTEMBER 30, 2003
DATE OF REPORTING PERIOD: SEPTEMBER 30, 2003
ITEM 1. REPORTS TO STOCKHOLDERS.
[CAUSEWAY
INTERNATIONAL
VALUE FUND
LOGO OMITTED]
ANNUAL REPORT
SEPTEMBER 30, 2003
CAUSEWAY CAPITAL MANAGEMENT LLC
[Background Graphic Omitted]
[Background Graphic Omitted]
TABLE OF CONTENTS
Letter to Shareholders 2
Schedule of Investments 5
Sector Diversification 10
Statement of Assets & Liabilities 11
Statement of Operations 12
Statement of Changes in Net Assets 13
Financial Highlights 14
Notes to Financial Statements 15
Report of Independent Auditors 20
Notice to Shareholders 21
Trustee and Officer Information 22
<page>
LETTER TO SHAREHOLDERS
For the twelve months ended September 30, 2003, the Causeway International Value
Fund Institutional Class returned 36.21% and Investor Class returned 35.76%,
compared to the MSCI EAFE(R) Index return of 26.54% for the same period. These
twelve months consisted of two very different periods. In the first six months,
global stock markets suffered from pessimism over the global economy and the
ramifications of a controversial U.S. led war in Iraq. However, the successful
toppling of Saddam Hussein's regime and early signs of economic recovery fueled
the demand for equities during the second six months.
The Fund surpassed the MSCI EAFE(R) Index during the fiscal year ended September
30, 2003, gaining a margin of over 9% in excess of the Index. We attribute this
outperformance to favorable stock selection in the Pacific Rim and in Europe.
The Fund's holdings in Hong Kong, the Netherlands, Germany, Switzerland and
Japan made the largest contribution to gains from stock selection. The Fund
winners this period were companies in industries such as banking,
telecommunications, insurance, technology hardware, and healthcare equipment and
services. The Fund's top five contributors to performance in the period were:
Fresenius Medical Care (Germany), a global leader in kidney dialysis products
and services; Konica-Minolta (Japan), a leader in precision electronics; Philips
Electronics (Netherlands), a beneficiary of the improving semiconductor cycle,
and two European insurance companies, Zurich Financial Services (Switzerland)
and AXA (France), whose share prices reflected improving solvency and enhanced
profitability.*
Detractors to performance in the period included the Japanese video game
company, Nintendo, a casualty of greater competition in the game hardware
segment; Dutch construction goods trader, Hagemeyer, suffering from weak
profitability; U.K.-based Chubb, a manufacturer of electronic security devices;
Germany-based Bayerische Hypo bank, with intractable low profit margins; and
U.K.-based telecommunication equipment and services provider, Spirent, the
prospects of which declined with the sizable reduction in telecom carrier
capital expenditures.*
* WEIGHTS AT 9/30/03: FRESENIUS MEDICAL CARE (1.16%), KONICA-MINOLTA (1.94%),
PHILIPS ELECTRONICS (2.10%), ZURICH FINANCIAL SERVICES (1.72%), AXA (1.54%),
NINTENDO (0.0%), HAGEMEYER (0.0%), CHUBB (0.0%), BAYERISHCHE HYPO BANK (0.0%),
AND SPIRENT (0.0%). PERCENTAGES ARE BASED ON NET ASSETS OF $545,630,874.
In September, the world's major industrialized economies met in Dubai and
communiques released after the G-7 meetings indicated a commitment to currency
exchange rate flexibility. We think allowing market mechanisms to operate with
reduced government manipulation of currency exchange rates should help the
global economy.
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2
<page>
To our satisfaction, the Fund's sensitivity to benchmark return gradually
declined later in the fiscal year as we shifted out of those stocks trading at
our price targets and purchased what we believed to be more attractive, often
higher yielding candidates. We attribute this recent risk reduction to a
deliberate effort on our part to take profit in some of the best performing
stocks in the Fund in such sectors as technology and financials. We have
reinvested those proceeds into laggards in capital goods and consumer staples.
Overall, the Fund remains well diversified by region, sector, and industry. With
much of the near term economic recovery already discounted in share prices, we
await the benefits of operating leverage, a byproduct of corporate restructuring
and cost cutting. If the U.S. dollar depreciates further against the euro, yen
and other currencies, we believe many companies in Europe and Asia may be forced
to implement another round of dramatic restructuring. For the Fund's holdings,
we seek to invest in companies with managements that will implement the
efficiencies necessary to protect profit margins and offset currency headwinds.
Leaner, more efficient businesses, in our view, have the potential to earn more
and pay higher dividends in the long term.
/s/ Harry W. Hartford /s/ Sarah H. Ketterer /s/ James A. Doyle
Harry W. Hartford Sarah H. Ketterer James A. Doyle
Portfolio Manager Portfolio Manager Portfolio Manager
October 2003
AS OF 9/30/03, AVERAGE ANNUAL TOTAL RETURNS FOR THE INSTITUTIONAL CLASS WERE
36.21% (ONE YEAR) AND 10.02% (SINCE INCEPTION), AND FOR THE INVESTOR CLASS WERE
35.76% (ONE YEAR) AND 9.69% (SINCE INCEPTION). INCEPTION WAS 10/26/01. THE
PERFORMANCE DATA REPRESENTS PAST PERFORMANCE AND IS NOT AN INDICATION OF FUTURE
RESULTS. INVESTMENT RETURN AND PRINCIPAL VALUE OF AN INVESTMENT WILL FLUCTUATE
SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH LESS THAN THEIR
ORIGINAL COST. INVESTMENT PERFORMANCE REFLECTS FEE WAIVERS IN EFFECT.
IN THE ABSENCE OF SUCH FEE WAIVERS, TOTAL RETURN WOULD BE REDUCED. TOTAL RETURNS
ASSUME REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS AT NET ASSET
VALUE WHEN PAID. INVESTOR CLASS SHARES HAVE A SHAREHOLDER SERVICES FEE OF UP TO
0.25% PER ANNUM OF AVERAGE DAILY NET ASSETS, AND WILL HAVE LOWER PERFORMANCE
THAN INSTITUTIONAL CLASS SHARES. INSTITUTIONAL CLASS SHARES HAVE NO SHAREHOLDER
SERVICES FEE. FOR MORE INFORMATION, PLEASE SEE THE PROSPECTUS.
THE ABOVE COMMENTARY EXPRESSES THE PORTFOLIO MANAGERS' VIEWS AS OF THE DATE
SHOWN AND SHOULD NOT BE RELIED UPON BY THE READER AS RESEARCH OR INVESTMENT
ADVICE REGARDING ANY STOCK. THESE VIEWS AND THE PORTFOLIO HOLDINGS ARE SUBJECT
TO CHANGE. THERE IS NO GUARANTEE THAT ANY FORECASTS MADE WILL COME TO PASS. THE
MSCI EAFE(R) INDEX IS AN UNMANAGED INDEX CONSISTING OF A MARKET-VALUE-WEIGHTED
AVERAGE OF THE PERFORMANCE OF INTERNATIONAL SECURITIES LISTED ON EXCHANGES IN
EUROPE, AUSTRALASIA AND THE FAR EAST. THE INDEX DOES NOT REFLECT THE PAYMENT OF
TRANSACTION COSTS, FEES AND EXPENSES ASSOCIATED WITH THE FUND. IT IS NOT
POSSIBLE TO INVEST DIRECTLY IN AN INDEX. THERE ARE SPECIAL RISKS IN FOREIGN
INVESTING (PLEASE SEE NOTE 5 IN THE NOTES TO FINANCIAL STATEMENTS).
- --------------------------------------------------------------------------------
3
<page>
Comparison of Change in the Value of a $10,000 Investment in Causeway
International Value Fund Institutional Class shares and Investor Class shares
versus the MSCI EAFE(R) Index
CAUSEWAY INTERNATIONAL CAUSEWAY INTERNATIONAL
VALUE FUND VALUE FUND MSCI EAFE(R)
INSTITUTIONAL CLASS INVESTOR CLASS INDEX
10/31/01 $10,000 $10,000 $10,000
9/30/02 8,990 8,966 8,264
9/30/03 12,245 12,173 10,457
- --------------------------------------------------------------------------------
Annualized
One Year Inception
Return to Date
- --------------------------------------------------------------------------------
Institutional Class 36.21% 10.02%
- --------------------------------------------------------------------------------
Investor Class 35.76% 9.69%
- --------------------------------------------------------------------------------
The performance in the above graph does not reflect the deduction of taxes the
shareholder will pay on fund distributions or the redemptions of fund shares.
The inception date of Causeway International Value Fund is October 26, 2001.
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4
<page>
SCHEDULE OF INVESTMENTS
SEPTEMBER 30, 2003
MARKET
VALUE
CAUSEWAY INTERNATIONAL VALUE FUND NUMBER OF SHARES (000)
- --------------------------------------------------------------------------------
COMMON STOCK
CANADA -- 2.2%
Celestica* 307,120 $ 4,848
Manulife Financial 244,651 7,076
--------
11,924
FINLAND -- 1.1%
UPM-Kymmene 368,800 6,180
--------
FRANCE -- 10.2%
Aventis 239,201 12,410
AXA 498,384 8,398
BNP Paribas 151,967 7,450
Peugeot 190,089 8,078
Societe BIC 69,063 2,944
Total 52,952 7,992
Vinci 117,788 8,484
--------
55,756
--------
GERMANY -- 1.8%
Depfa Bank 72,944 7,079
Fresenius Medical Care 45,946 2,648
--------
9,727
--------
HONG KONG -- 4.6%
Cathay Pacific Airways 4,816,000 8,147
Henderson Land Development 1,846,648 7,750
Swire Pacific 1,576,500 9,304
--------
25,201
--------
IRELAND -- 2.4%
Allied Irish Banks 554,440 8,168
Greencore Group 1,511,560 4,981
--------
13,149
--------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
CAUSEWAY INTERNATIONAL VALUE FUND 5
<page>
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2003
MARKET
VALUE
CAUSEWAY INTERNATIONAL VALUE FUND NUMBER OF SHARES (000)
- --------------------------------------------------------------------------------
JAPAN -- 12.1%
Acom 213,270 $ 9,564
Canon 163,000 7,966
Honda Motor 219,400 8,779
Konica Minolta Holdings 801,400 10,603
Namco 208,800 4,916
Promise 236,500 10,373
Sanyo Shinpan Finance 136,100 4,836
Takefuji 136,210 8,718
--------
65,755
--------
NETHERLANDS -- 8.5%
ABN AMRO Holding 286,266 5,284
Akzo Nobel 183,771 5,729
ING Groep 416,774 7,635
Koninklijke Philips Electronics 504,337 11,429
TPG 376,410 7,114
Vedior 763,898 9,305
--------
46,496
--------
NEW ZEALAND -- 1.2%
Telecom Corporation of New Zealand 2,177,830 6,675
--------
NORWAY -- 1.9%
Telenor 2,281,221 10,152
--------
PORTUGAL -- 1.4%
Portugal Telecom SGPS 952,092 7,528
--------
SINGAPORE -- 1.9%
Creative Technology 557,997 6,101
United Overseas Bank 574,629 4,455
--------
10,556
--------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
6 CAUSEWAY INTERNATIONAL VALUE FUND
<page>
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2003
MARKET
VALUE
CAUSEWAY INTERNATIONAL VALUE FUND NUMBER OF SHARES (000)
- --------------------------------------------------------------------------------
SOUTH KOREA -- 2.8%
Samsung Electronics 22,690 $ 7,733
SK Telecom 48,120 7,698
--------
15,431
--------
SPAIN -- 4.1%
Altadis 289,709 7,136
Banco Santander Central Hispano 794,713 6,737
Telefonica 700,819 8,276
--------
22,149
--------
SWITZERLAND -- 6.2%
Credit Suisse Group 230,586 7,377
Geberit 15,534 5,764
Novartis 172,446 6,673
SIG Holding 36,975 4,872
Zurich Financial Services* 75,101 9,383
--------
34,069
--------
UNITED KINGDOM -- 27.3%
Arriva 1,152,251 7,562
Aviva 1,018,022 7,898
BAA 101,800 785
BAE Systems 1,489,598 4,158
British Airways* 1,820,095 5,027
British American Tobacco 728,681 7,827
Cadbury Schweppes 1,636,187 10,058
Diageo 1,018,766 10,993
GlaxoSmithKline 340,400 7,064
Hanson 836,370 5,298
Hays 4,445,274 7,958
Kingfisher 1,669,635 7,240
Lloyds TSB Group 914,950 6,289
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
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CAUSEWAY INTERNATIONAL VALUE FUND 7
<page>
SCHEDULE OF INVESTMENTS (CONTINUED)
SEPTEMBER 30, 2003
MARKET
VALUE
CAUSEWAY INTERNATIONAL VALUE FUND NUMBER OF SHARES (000)
- --------------------------------------------------------------------------------
UNITED KINGDOM -- (CONTINUED)
Reed Elsevier 780,140 $ 6,101
Reuters Group 2,327,882 8,209
Royal Bank of Scotland Group 397,103 10,094
SABMiller 533,802 4,177
Shell Transport & Trading 1,241,700 7,664
Unilever 916,780 7,829
Vodafone Group 4,351,415 8,675
Wolseley 696,726 8,129
--------
149,035
--------
TOTAL COMMON STOCK
(COST $434,077) -- 89.7% 489,783
--------
PREFERRED STOCK
GERMANY -- 0.7%
Fresenius Medical Care 83,611 3,700
--------
TOTAL PREFERRED STOCK
(COST $3,403) -- 0.7% 3,700
--------
RIGHTS
FRANCE -- 0.0%
AXA 484,134 23
--------
TOTAL RIGHTS
(COST $0) -- 0.0% 23
--------
CASH EQUIVALENT
Bank of New York Cash Management Program 32,623,112 32,623
--------
TOTAL CASH EQUIVALENT
(COST $32,623) -- 6.0% 32,623
--------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
8 CAUSEWAY INTERNATIONAL VALUE FUND
<page>
SCHEDULE OF INVESTMENTS (CONCLUDED)
SEPTEMBER 30, 2003
VALUE
CAUSEWAY INTERNATIONAL VALUE FUND (000)
- --------------------------------------------------------------------------------
TOTAL INVESTMENTS
(COST $470,103) -- 96.4% $526,129
========
Percentages are based on Net Assets of $545,630,874.
* Non-income producing security
Country determined by registration, location of headquarters or primary listing.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
CAUSEWAY INTERNATIONAL VALUE FUND 9
<page>
SECTOR DIVERSIFICATION
SEPTEMBER 30, 2003
AS OF SEPTEMBER 30, 2003, THE SECTOR DIVERSIFICATION WAS AS FOLLOWS:
CAUSEWAY INTERNATIONAL VALUE FUND MARKET VALUE (000) % OF NET ASSETS
- --------------------------------------------------------------------------------
COMMON STOCK
Food, Beverage & Tobacco $ 58,388 10.7%
Financial Services 48,152 8.8
Telephones & Telecommunications 47,307 8.7
Banks 44,831 8.2
Automotive 24,097 4.4
Drugs 23,260 4.3
Machinery 22,527 4.1
Aircraft 22,478 4.1
Petroleum Exploration 21,945 4.0
Photographic Equipment & Supplies 18,569 3.4
Miscellaneous Business Services 17,263 3.2
Building & Construction 15,548 2.9
Commercial Banks 15,244 2.8
Specialty Machinery 11,429 2.1
Retail 10,214 1.9
Metals & Mining 8,675 1.6
Professional Services 8,209 1.5
Building & Construction Supplies 8,129 1.5
Insurance 7,898 1.4
Real Estate 7,750 1.4
Broadcasting, Newspapers & Advertising 7,698 1.4
Paper & Paper Products 6,180 1.1
Computers & Services 6,101 1.1
Printing & Publishing 6,101 1.1
Chemicals 5,729 1.1
Circuit Boards 4,848 0.9
Personal Credit Institutions 4,836 0.9
Office Furniture & Fixtures 2,944 0.5
Medical Products & Services 2,648 0.5
Transportation Services 785 0.1
-------- -----
TOTAL COMMON STOCK 489,783 89.7
PREFERRED STOCK
Medical Products & Services 3,700 0.7
-------- -----
TOTAL PREFERRED STOCK 3,700 0.7
RIGHTS
Insurance 23 --
-------- -----
TOTAL RIGHTS 23 --
TOTAL CASH EQUIVALENT 32,623 6.0
-------- -----
TOTAL INVESTMENTS 526,129 96.4
OTHER ASSETS & LIABILITIES, NET 19,502 3.6
-------- -----
TOTAL NET ASSETS $545,631 100.0%
======== =====
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
10 CAUSEWAY INTERNATIONAL VALUE FUND
<page>
STATEMENT OF ASSETS AND LIABILITIES (000)
CAUSEWAY
INTERNATIONAL
VALUE FUND
-----------------
9/30/03
-----------------
ASSETS:
Investments at Market Value (Cost $470,103) $526,129
Receivable for Fund Shares Sold 28,397
Receivable for Investment Securities Sold 8,521
Tax Reclaim Receivable 167
Unrealized Gains on Foreign Currency Contracts 5
Accrued Income 1,488
--------
TOTAL ASSETS 564,707
--------
LIABILITIES:
Payable for Investment Securities Purchased 18,360
Payable for Fund Shares Redeemed 150
Payable due to Investment Adviser 304
Payable due to Administrator 56
Accrued Expenses 206
--------
TOTAL LIABILITIES 19,076
--------
TOTAL NET ASSETS: $545,631
========
NET ASSETS:
Fund Shares of Institutional Class
(unlimited authorization -- no par value)
based on 18,932,894 outstanding shares of beneficial interest 203,410
Fund Shares of Investor Class
(unlimited authorization -- no par value)
based on 27,190,816 outstanding shares of beneficial interest 280,891
Undistributed Net Investment Income 4,784
Accumulated Net Realized Gain on Investments 540
Net Unrealized Appreciation on Investments 56,026
Net Unrealized Depreciation on Foreign Currency
Contracts, Foreign Currencies and Translation of
Other Assets and Liabilities Denominated in Foreign Currencies (20)
--------
TOTAL NET ASSETS: $545,631
========
NET ASSET VALUE (BASED ON NET ASSETS OF $224,464,032),
OFFERING AND REDEMPTION PRICE PER SHARE -- INSTITUTIONAL CLASS $ 11.86
========
NET ASSET VALUE (BASED ON NET ASSETS OF $321,166,842),
OFFERING AND REDEMPTION PRICE PER SHARE -- INVESTOR CLASS $ 11.81
========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
CAUSEWAY INTERNATIONAL VALUE FUND 11
<page>
STATEMENT OF OPERATIONS (000)
CAUSEWAY
INTERNATIONAL
VALUE FUND
-----------------
10/01/02 to
9/30/03
-----------------
INVESTMENT INCOME:
Dividend Income (net of foreign taxes withheld of $921) $ 8,832
Interest Income 21
----------
Total Investment Income 8,853
----------
EXPENSES:
Investment Advisory Fees 2,525
Shareholder Servicing Fees - Investor Class 486
Administration Fees 456
Custodian Fees 256
Professional Fees 98
Transfer Agent Fees 83
Printing Fees 79
Registration Fees 57
Director Fees 46
Other Fees 13
----------
Total Expenses 4,099
----------
Less:
Waiver of Investment Advisory Fees (300)
Directed Brokerage (1) (43)
----------
Net Expenses 3,756
----------
NET INVESTMENT INCOME 5,097
----------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net Realized Gain from Security Transactions 1,296
Net Realized Loss from Foreign Currency Transactions (214)
Net Change in Unrealized Appreciation on Investments 98,033
Net Change in Unrealized Depreciation on Foreign Currency
Contracts, Foreign Currency, and Translation of Other Assets
and Liabilities Denominated in Foreign Currency (27)
----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS 99,088
----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $104,185
==========
(1) See Note 3 in the Notes to Financial Statements.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
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12 CAUSEWAY INTERNATIONAL VALUE FUND
<page>
STATEMENT OF CHANGES IN NET ASSETS (000)
CAUSEWAY INTERNATIONAL
VALUE FUND
----------- ---------------
10/01/02 to 10/26/01 (1) to
9/30/03 9/30/02
----------- ---------------
OPERATIONS:
Net Investment Income $ 5,097 $ 1,591
Net Realized Gain from Security Transactions 1,296 298
Net Realized Loss from Foreign Currency Transactions (214) (38)
Net Change in Unrealized Appreciation (Depreciation) on Investments 98,033 (42,007)
Net Change in Unrealized Appreciation (Depreciation ) on Foreign
Currency Contracts, Foreign Currency, and Translation of Other Assets
and Liabilities Denominated in Foreign Currency (27) 7
-------- --------
Net Increase(Decrease) in Net Assets Resulting from Operations 104,185 (40,149)
-------- --------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income Dividend:
Institutional Class (650) (13)
Investor Class (1,122) (11)
-------- --------
Total Net Investment Income Dividends (1,772) (24)
-------- --------
Net Capital Gain Distribution:
Institutional Class (344) --
Investor Class (710) --
-------- --------
Total Net Capital Gain Distributions (1,054) --
-------- --------
Total Dividends and Distributions to Shareholders (2,826) (24)
-------- --------
CAPITAL SHARE TRANSACTIONS(2):
Institutional Class:
Proceeds from Shares Sold 177,853 101,838(3)
Reinvestment of Dividends 992 12
Payments for Shares Redeemed (60,119) (17,228)
Redemption Fee(4) 5 8
-------- --------
Increase in Net Assets Derived from Institutional Class Transactions 118,731 84,630
-------- --------
Investor Class:
Proceeds from Shares Sold 272,012 223,396(3)
Reinvestment of Dividends 1,796 11
Payments for Shares Redeemed (148,635) (67,615)
Redemption Fee(4) 17 2
-------- --------
Increase in Net Assets Derived from Investor Class Transactions 125,190 155,794
-------- --------
Net Increase in Net Assets Derived from Capital Share Transactions 243,921 240,424
-------- --------
Total Increase in Net Assets 345,280 200,251
NET ASSETS:
Beginning of Period 200,351 100
-------- --------
End of Period $545,631 $200,351
======== ========
(1) Commencement of operations
(2) See Note 8 in the Notes to Financial Statements.
(3) Includes subscriptions as a result of in-kind transfers of securities (see
Note 7 in the Notes to Financial Statements).
(4) See Note 2 in the Notes to Financial Statements.
Amounts designated as "--" are $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
CAUSEWAY INTERNATIONAL VALUE FUND 13
<page>
FINANCIAL HIGHLIGHTS
FOR THE YEAR ENDED SEPTEMBER 30, 2003 AND THE PERIOD FROM INCEPTION(1) THROUGH
SEPTEMBER 30, 2002
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS
- ------------------------------------------------------------------------------------------------------------------------------------
Net Realized
and
Net Asset Unrealized Dividends Distributions Total
Value, Net Gain Total from Net from Dividends Net Asset
Beginning Investment (Loss) on from Investment Capital and Value, End Total
of Period Income Securities Operations Income Gains Distributions of Period Return+
- ------------------------------------------------------------------------------------------------------------------------------------
CAUSEWAY INTERNATIONAL VALUE FUND
INSTITUTIONAL CLASS
2003++ $ 8.82 $0.18 $ 2.98 $3.16 $(0.08) $(0.04) $(0.12) $11.86 36.21%
2002(1) 10.00 0.09 (1.26) (1.17) (0.01) -- (0.01) 8.82 (11.72)
INVESTOR CLASS
2003++ $ 8.80 $0.16 $ 2.96 $3.12 $(0.07) $(0.04) $(0.11) $11.81 35.76%
2002(1) 10.00 0.07 (1.26) (1.19) (0.01) -- (0.01) 8.80 (11.95)
- -------------------------------------------------------------------------------------------------------------------
Ratio of
Ratio of Expenses
Expenses to Average
to Average Net Assets Ratio of Ratio of Net
Net Assets Net Assets (Excluding) Expenses Investment
End of (Excluding Waivers and to Average Income Portfolio
Period Directed Directed Net to Average Turnover
(000) Brokerage)+++ Brokerage Assets++++ Net Assets Rate+
- -------------------------------------------------------------------------------------------------------------------
CAUSEWAY INTERNATIONAL VALUE FUND
INSTITUTIONAL CLASS
2003++ $224,464 1.05% 1.14% 1.04% 1.74% 32.32%
2002(1) 70,883 1.05 1.52 1.03 1.70 46.76
INVESTOR CLASS
2003++ $321,167 1.28% 1.37% 1.27% 1.55% 32.32%
2002(1) 129,468 1.29 1.69 1.27 1.44 46.76
(1) Commenced operations on October 26, 2001. All ratios for the period have
been annualized.
+ Returns and portfolio turnover are for the period indicated and have not
been annualized.
++ Per share amounts calculated using average shares method.
+++ See Note 3 in the Notes to Financial Statements.
++++ Expense ratio effected by directed brokerage (see Note 3 in the Notes to
Financial Statements).
Amounts designated as "--" are $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
- --------------------------------------------------------------------------------
14 CAUSEWAY INTERNATIONAL VALUE FUND
<page>
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION
Causeway International Value Fund (the "Fund") is a series of Causeway Capital
Management Trust (the "Trust"). The Trust is an open-end management investment
company registered under the Investment Company Act of 1940, as amended, (the
"1940 Act") and is a Delaware statutory trust that was established on August 10,
2001. The Fund began operations on October 26, 2001. The Fund is authorized to
offer two classes of shares, the Institutional Class and the Investor Class. The
Declaration of Trust authorizes the issuance of an unlimited number of shares of
beneficial interest of the Fund. The Fund's prospectus provides a description of
the Fund's investment objectives, policies and strategies.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the significant accounting policies consistently
followed by the Fund.
USE OF ESTIMATES IN THE PREPARATION OF FINANCIAL STATEMENTS - The preparation of
financial statements in conformity with accounting principles generally accepted
in the United States of America requires management to make estimates and
assumptions that affect the reported amount of net assets and liabilities and
disclosure of contingent assets at the date of the financial statements and the
reported results of operations during the reporting period. Actual results could
differ from those estimates.
SECURITY VALUATION - Investments in equity securities that are traded on a
national securities exchange (or reported on The Nasdaq Stock Market) are stated
at the last quoted sale price, if readily available, for such securities on each
business day. Other equity securities traded in the over-the-counter market and
listed equity securities for which no sale was reported on that date are stated
at the last quoted bid price. Securities listed on a foreign exchange are valued
at the last quoted sale price before the Fund is valued. When market quotations
are not readily available, securities are valued at fair value as determined in
good faith by procedures established and approved by the Board of Trustees.
Securities listed on a foreign exchange may trade on weekends or other days when
the Fund does not calculate its net asset value. As a result, the market value
of these Fund investments may change on days when investors cannot buy and sell
shares of the Fund.
SECURITY TRANSACTIONS AND RELATED INCOME - Security transactions are accounted
for on the trade date. Dividend income is recognized on the ex-dividend date,
and interest income is recognized using the accrual basis of accounting. Costs
used in determining realized gains and losses on the sales of investment
securities are those of the specific securities sold.
- --------------------------------------------------------------------------------
CAUSEWAY INTERNATIONAL VALUE FUND 15
<page>
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
FOREIGN CURRENCY TRANSLATION - The books and records of the Fund are maintained
in U.S. dollars on the following basis:
(1) market value of investment securities, assets and liabilities at the current
rate of exchange; and
(2) purchases and sales of investment securities, income and expenses at the
relevant rates of exchange prevailing on the respective date of such
transactions.
The Fund does not isolate that portion of gains and losses on investments in
equity securities that is due to changes in the foreign exchange rates from that
which is due to changes in market prices of equity securities.
FORWARD FOREIGN CURRENCY CONTRACTS - The Fund may enter into forward foreign
currency contracts to settle transactions or as hedges against either specific
transactions, Fund positions or anticipated Fund positions. All commitments are
"marked-to-market" daily at the applicable foreign exchange rate and any
resulting unrealized gains or losses are recorded currently. The Fund realizes
gains and losses at the time forward contracts are closed. Unrealized gains or
losses on outstanding positions in forward foreign currency contracts held at
the close of the year are recognized as ordinary income or loss for Federal
income tax purposes. As of September 30, 2003, the following forward foreign
currency contracts were outstanding:
Contracts Unrealized
Maturity to Deliver/ In Appreciation
Date Receive Exchange For (Depreciation)
- --------------------------------------------------------------------------------
Foreign Currency Purchases:
10/02/03 CD 805,453 595,353 $ 1,522
10/02/03 CF 899,924 677,322 4,129
10/02/03 EU 4,989,131 5,779,808 30,284
10/02/03 -
10/03/03 UK 4,205,826 7,003,566 (16,186)
10/02/03 HK 5,450,585 703,120 745
10/02/03 JP 118,261,179 1,065,061 (6,464)
10/02/03 NO 912,877 130,049 (671)
10/02/03 NZ 320,947 190,016 610
10/02/03 SG 212,871 123,089 61
- --------------------------------------------------------------------------------
$ 14,030
- --------------------------------------------------------------------------------
Foreign Currency Sales:
10/01/03 UK 3,434,098 5,696,481 (8,929)
10/01/03 -
10/03/03 JP 239,052,186 2,138,680 (1,250)
- --------------------------------------------------------------------------------
$(10,179)
- --------------------------------------------------------------------------------
CURRENCY LEGEND
CD Canadian Dollar NO Norwegian Krone
CF Swiss Franc NZ New Zealand Dollar
EU Euro SG Singapore Dollar
HK Hong Kong Dollar UK British Pound Sterling
JP Japanese Yen
EXPENSES - Class specific expenses are borne by that class of shares. Income,
realized and unrealized gains/losses and non class specific expenses are
allocated to the respective classes on the basis of relative daily net assets.
DIVIDENDS AND DISTRIBUTIONS - Dividends from net investment income are declared
and paid on an annual basis. Any net realized capital gains on sales of
securities are distributed to shareholders at least annually.
- --------------------------------------------------------------------------------
16 CAUSEWAY INTERNATIONAL VALUE FUND
<page>
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
OTHER - The Fund imposes redemption fees on the value of capital shares redeemed
less than 90 days after purchase on certain investors.
3. INVESTMENT ADVISORY, ADMINISTRATION,
SHAREHOLDER SERVICE AND DISTRIBUTION
AGREEMENTS
The Trust, on behalf of the Fund, has entered into an Investment Advisory
Agreement (the "Advisory Agreement") with Causeway Capital Management LLC (the
"Investment Adviser"). Under the Advisory Agreement, the Investment Adviser is
entitled to a monthly fee equal to an annual rate of 0.80% of the Fund's average
daily net assets. The Investment Adviser contractually agreed to waive its fee
for the fiscal year ended September 30, 2003 and, to the extent necessary,
reimburse the Fund in order to keep total annual operating expenses from
exceeding 1.05% and 1.30% of the Institutional Class and Investor Class average
daily net assets, respectively. The Investment Adviser has renewed this expense
limit agreement for the fiscal year ended September 30, 2004.
Directed brokerage credits are used to pay Fund expenses. Because the Investment
Adviser has a binding expense limit commitment to the Fund, directed brokerage
credits may not be used to increase the management fee received by the
Investment Adviser. Accordingly, the Investment Adviser's management fee waiver
is calculated using expenses gross of directed brokerage credits. The credits
are then applied after the Investment Adviser's full management fee waiver.
The Trust and SEI Investments Global Funds Services (the "Administrator") have
entered into an Administration Agreement dated September 20, 2001. Under the
terms of the Administration Agreement, the Administrator is entitled to an
annual fee which is calculated daily and paid monthly based on the aggregate
average daily net assets of the Fund as follows: 0.15% up to $250 million;
0.125% from $250 million to $500 million; 0.10% from $500 million to $1 billion;
and 0.07% in excess of $1 billion. The Fund is subject to a minimum annual fee
of $165,000 for all portfolios and classes in existence on the agreement date
and $80,000 for any portfolio created thereafter. In addition, the minimum
annual fee will be increased $20,000 for each new class added after the
agreement date.
The Fund has adopted a Shareholder Service Plan and Agreement (the "Plan") for
the Investor Class shares that allows the Fund to pay broker-dealers and other
financial intermediaries a fee of up to 0.25% per annum of average daily net
assets for services provided to shareholders of the Fund. For the fiscal year
ended September 30, 2003, the Fund paid 0.23% of average daily net assets under
the Plan.
The Trust and SEI Investments Distribution Co. (the "Distributor"), a wholly
owned subsidiary of SEI Investments Company, have entered into a Distribution
Agreement. The Distributor receives no fees for its distribution services under
this agreement.
Certain trustees and officers of the Fund are also officers of the Administrator
and/or Distributor or are members and officers of the Investment Adviser. These
persons receive no fees for serving as trustees or officers of the Fund.
- --------------------------------------------------------------------------------
CAUSEWAY INTERNATIONAL VALUE FUND 17
<page>
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
4. INVESTMENT TRANSACTIONS
The cost of security purchases and the proceeds from the sale of securities,
other than temporary cash investments, during the year ended September 30, 2003
for the Fund were as follows:
U.S. Government Other Investment
Securities Securities
---------- ----------
Purchases Sales Purchases Sales
(000) (000) (000) (000)
- --------------------------------------------------------
$-- $-- $304,850 $98,834
- --------------------------------------------------------
5. RISKS OF FOREIGN INVESTING
The Fund invests in securities of foreign issuers in various countries. These
investments may involve certain considerations and risks not typically
associated with investments in the United States as a result of, among other
factors, the possibility of future political and economic developments and the
level of governmental supervision and regulation of securities markets in
different foreign countries.
6. FEDERAL TAX INFORMATION
The Fund is classified as a separate taxable entity for Federal income tax
purposes. The Fund intends to continue to qualify as a separate "regulated
investment company" under Subchapter M of the Internal Revenue Code and make the
requisite distributions to shareholders that will be sufficient to relieve it
from Federal income tax and Federal excise tax. Therefore, no Federal tax
provision is required. To the extent that distributions from net investment
income and net realized capital gains exceed amounts reported in the financial
statements, such amounts are reported separately.
The Fund may be subject to taxes imposed by countries in which it invests in
issuers existing or operating in such countries. Such taxes are generally based
on income earned. The Fund accrues such taxes when the related income is earned.
The amounts of distributions from net investment income and net realized capital
gains are determined in accordance with Federal income tax regulations, which
may differ from those amounts determined under accounting principles generally
accepted in the United States of America. These book/tax differences are either
temporary or permanent in nature. In addition, the Fund may use earnings and
profits distributed to shareholders on redemption of shares as part of the
dividends paid deduction for income tax purposes. The character of distributions
made during the year from net investment income or net realized gains, and the
timing of distributions made during the year may differ from the year that the
income or realized gains (losses) were recorded by the Fund. To the extent these
differences are permanent, adjustments are made to the appropriate equity
accounts in the period that the differences arise.
- --------------------------------------------------------------------------------
18 CAUSEWAY INTERNATIONAL VALUE FUND
<page>
NOTES TO FINANCIAL STATEMENTS
(CONCLUDED)
Accordingly, the following permanent differences, which are primarily due to
realized gains on foreign currency, have been reclassified to/from the following
accounts (000):
Undistributed Accumulated
Net Investment Net Realized Paid In
Income Gain Capital
- --------------------------------------------------------
$(207) $214 $(7)
- --------------------------------------------------------
The tax character of dividends and distributions paid during the period ended
September 30, 2002 and the year ended September 30, 2003 was all ordinary
income.
As of September 30, 2003, the components of distributable income (accumulated
losses) on a tax basis were as follows (000):
Undistributed Undistributed Post-October Total
Ordinary Long-Term Currency Unrealized Distributable
Income Capital Gain Losses Appreciation Income
- -------------------------------------------------------------------------
$9,520 $1,078 $(234) $50,966 $61,330
- -------------------------------------------------------------------------
Post-October currency losses represent losses realized on currency transactions
from November 1, 2002 through September 30, 2003 that, in accordance with
Federal income tax regulations, the Fund may elect to defer and treat as having
arisen in the following fiscal year.
At September 30, 2003, the total cost of securities for federal income tax
purposes and the aggregate gross unrealized appreciation and depreciation on
investment securities for the Fund were as follows (000):
Net
Federal Appreciated Depreciated Unrealized
Tax Cost Securities Securities Appreciation
- ------------------------------------------------------------------
$471,251 $61,915 $(7,037) $54,878
- ------------------------------------------------------------------
7. IN-KIND TRANSFERS OF SECURITIES
During the period ended September 30, 2002, the Fund issued shares of beneficial
interest in exchange for portfolio assets. The securities were transferred at
their current value on the date of transaction.
Shares
Issued Value
- -----------------------------------------------------------------
Institutional Class: 10/29/01 488,507 $4,885,067
Investor Class: 11/14/01 1,611,912 16,377,029
- -----------------------------------------------------------------
8. CAPITAL SHARES ISSUED AND REDEEMED (000)
INSTITUTIONAL CLASS:
Shares Sold 17,133
Shares Issued in Reinvestment
of Dividends 108
Shares Redeemed (6,342)
------------
Increase in Shares Outstanding
Derived from Institutional
Class Transactions 10,899
------------
INVESTOR CLASS:
Shares Sold 28,110
Shares Issued in Reinvestment
of Dividends 195
Shares Redeemed (15,828)
------------
Increase in Shares Outstanding
Derived from Investor
Class Transactions 12,477
------------
Increase in Shares Outstanding
from Capital Share Transactions 23,376
============
- --------------------------------------------------------------------------------
CAUSEWAY INTERNATIONAL VALUE FUND 19
<page>
REPORT OF INDEPENDENT AUDITORS
To the Board of Trustees and Shareholders of
Causeway International Value Fund
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, of the Causeway International Value Fund (the
"Fund"), and the related statements of operations and changes in net assets and
the financial highlights present fairly, in all material respects, the financial
position of the Fund as of September 30, 2003, and the results of its operations
for the year then ended and the changes in its net assets and its financial
highlights for the year then ended and for the period October 26, 2001
(commencement of operations) to September 30, 2002, in conformity with
accounting principles generally accepted in the United States of America. These
financial statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with auditing standards generally accepted in the United States of America,
which require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting principles
used and significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which included
confirmation of securities at September 30, 2003 by correspondence with the
custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Los Angeles, California
November 20, 2003
- --------------------------------------------------------------------------------
20 CAUSEWAY INTERNATIONAL VALUE FUND
<page>
NOTICE TO SHAREHOLDERS (UNAUDITED)
The information set forth below is for the Fund's fiscal year as required by
federal laws. Shareholders, however, must report distributions on a calendar
year basis for income tax purposes, which may include distributions for portions
of two fiscal years of the Fund. Accordingly, the information needed by
shareholders for income tax purposes will be sent to them in early 2004. Please
consult your tax adviser for proper treatment of this information.
For the fiscal period ended September 30, 2003, the Fund is designating the
following items with regard to distributions paid during the year:
(A) (B) (C) (D) (E) (F) (G)
Qualifying
Long Term Ordinary Dividends (1) Qualifying
Capital Gains Income Tax Exempt Total for Corporate Dividend Income Foreign
Distributions Distributions Distributions Distributions Dividends Received (15% Tax Rate Tax
(Tax Basis) (Tax Basis) (Tax Basis) (Tax Basis) Deduction for QDI) Credit
------------- ------------- ------------- ------------- ------------------ --------------- ---------
0.00% 100.00% 0.00% 100.00% 0.00% 0.00% 24.58%
Foreign taxes accrued during the fiscal year ended September 30, 2003 amounted
to $921,251 and are expected to be passed through to shareholders as foreign tax
credits on Form 1099 - Dividend for the year ending December 31, 2003. In
addition, for the year ended September 30, 2003, gross income derived from
sources within foreign countries amounted to $9,752,936 for the Fund.
(1) Qualifying Dividends represent dividends which qualify for the corporate
dividends received deduction.
Items (A), (B), (C) and (D) are based on a percentage of the Fund's total
distribution.
Item (E) is based on a percentage of ordinary income distributions of the Fund.
Item (F) represents the amount of "Qualifying Dividend Income" as defined in the
Jobs and Growth Tax Relief Reconciliation Act of 2003 and is reflected as a
percentage of "Ordinary Income Distributions." It is the Fund's intention to
designate the maximum amount permitted by the law.
Item (G) is based on a percentage of ordinary income distributions of the Fund.
- --------------------------------------------------------------------------------
CAUSEWAY INTERNATIONAL VALUE FUND 21
<page>
TRUSTEE AND OFFICER INFORMATION (UNAUDITED)
Information pertaining to the Trustees and officers of the Trust is set forth
below. Trustees who are not deemed to be "interested persons" of the Trust as
defined in the 1940 Act are referred to as "Independent Board Members." Trustees
who are deemed to be "interested persons" of the Trust are referred to as
"Interested Board Members."
- -------------------------------------------------------------------------------------------------------------------------
TERM OF NUMBER OF
OFFICE PORTFOLIOS
AND PRINCIPAL IN TRUST OTHER
NAME POSITION(S) LENGTH OF OCCUPATION(S) COMPLEX DIRECTORSHIPS
ADDRESS, HELD WITH THE TIME DURING PAST OVERSEEN BY HELD BY
AGE(1) COMPANY SERVED(2) FIVE YEARS BOARD MEMBER(3) BOARD MEMBER(4)
- -------------------------------------------------------------------------------------------------------------------------
INTERESTED
BOARD MEMBERS(5)
- ---------------
Gracie V. Trustee & Since 8/01 Chief Operating Officer and 1 None
Fermelia Assistant Member of the Investment Adviser
Age: 42 Secretary (since 2001); Business Manager,
International Department,
Hotchkis and Wiley division
of Merrill Lynch Investment
Managers, L.P. ("MLIM"),
Los Angeles (1998 - 2001);
Vice President and
Compliance Officer, MLIM
(1996 - 1998).
INDEPENDENT
BOARD MEMBERS
- -------------
John A. G. Gavin Trustee Since 9/01 Partner and Managing Director, 1 Director/Trustee
Age: 72 Hicks, Muse, Tate & Furst (Latin International
America) (private equity Wire Co.,
investment firm)(1994 - 2001); TCW Galileo
Chairman, Gamma Holdings Funds, Inc.,
(investment holding company) TCW Convertible
(since 1968); U.S. Ambassador to Securities Fund,
Mexico (1981 - 1986) Inc., Hotchkis
and Wiley Funds
and Cloxson, S.A.
Lisa Mazzocco Trustee Since 9/01 Principal Investment Officer, Los 1 None
Age: 43 Angeles County Employees
Retirement Association (since
1992); Senior Analyst, Security
Pacific State Trust Company
(1990 to 1992); Analyst, Wilshire
Associates (1986 to 1990).
Eric H. Sussman Trustee Since 9/01 Tenured Lecturer, Anderson 1 None
Age: 37 Graduate School of Management,
University of California,
Los Angeles (since 1995);
President, Amber Capital,
Inc. (real estate
investment and financial
planning firm) (since
1993); Audit Manager, Price
Waterhouse (1988 - 1992).
- --------------------------------------------------------------------------------
22 CAUSEWAY INTERNATIONAL VALUE FUND
<page>
TRUSTEE AND OFFICER INFORMATION (UNAUDITED)
(CONTINUED)
- ---------------------------------------------------------------------------------------------------------------------------
TERM OF NUMBER OF
OFFICE PORTFOLIOS
AND PRINCIPAL IN TRUST OTHER
NAME POSITION(S) LENGTH OF OCCUPATION(S) COMPLEX DIRECTORSHIPS
ADDRESS, HELD WITH THE TIME DURING PAST OVERSEEN BY HELD BY
AGE(1) COMPANY SERVED(2) FIVE YEARS BOARD MEMBER(3) BOARD MEMBER(4)
- ---------------------------------------------------------------------------------------------------------------------------
OFFICERS
- --------
<c> <c> <c> <c>
Turner Swan President and Since 8/01 General Counsel and Member of the N/A N/A
11111 Santa Secretary Investment Adviser (since 2001);
Monica Blvd., Attorney, MLIM (1997 - 2001);
Suite 1550, Attorney, Sheppard, Mullin, Richter
Los Angeles, CA & Hampton LLP (1995 - 1997).
90025
Age: 41
Peter Golden Treasurer Since 9/01 Funds Accounting Director of N/A N/A
530 East the Administrator (since 2001);
Swedesford Road Vice President, Funds
Wayne, PA 19087 Administration, J.P. Morgan
Age: 39 Chase & Co., (2000 - 2001);
Vice President, Fund & Pension
Accounting, Chase Manhattan
Bank (1997 - 2000).
John C. Munch Vice President Since 07/02 Vice President and Assistant N/A N/A
One Freedom and Assistant Secretary of the Administrator and
Valley Drive Secretary Distributor (since November 2001);
Oaks, PA 19456 Associate at Howard, Rice, Nemerovski,
Age: 32 Canady, Falk & Rabkin (1998 - 2001);
Associate at Seward & Kissel
(1996 - 1998).
Todd Cipperman Vice President Since 9/01 Vice President and General Counsel N/A N/A
One Freedom and Assistant of the Administrator and Distributor
Valley Drive Secretary (since January 2000); Vice President
Oaks, PA 19456 and Assistant Secretary of the
Age: 37 Administrator and Distributor (since
1995); Associate with Dewey Ballantine
(1994-1995); Associate with Winston
& Strawn (prior to 1994).
Lydia A. Gavalis Vice President Since 9/01 Vice President and Assistant N/A N/A
One Freedom and Assistant Secretary of the Administrator and
Valley Drive Secretary Distributor (since 1998); Assistant
Oaks, PA 19456 General Counsel and Director of
Age: 39 Arbitration, Philadelphia Stock
Exchange (prior to 1998).
- --------------------------------------------------------------------------------
CAUSEWAY INTERNATIONAL VALUE FUND 23
<page>
TRUSTEE AND OFFICER INFORMATION (UNAUDITED)
(CONCLUDED)
- ---------------------------------------------------------------------------------------------------------------------------
TERM OF NUMBER OF
OFFICE PORTFOLIOS
AND PRINCIPAL IN TRUST OTHER
NAME POSITION(S) LENGTH OF OCCUPATION(S) COMPLEX DIRECTORSHIPS
ADDRESS, HELD WITH THE TIME DURING PAST OVERSEEN BY HELD BY
AGE(1) COMPANY SERVED(2) FIVE YEARS BOARD MEMBER(3) BOARD MEMBER(4)
- ---------------------------------------------------------------------------------------------------------------------------
Timothy D. Barto Vice President Since 9/01 Vice President and Assistant N/A N/A
One Freedom and Assistant Secretary of the Administrator and
Valley Drive Secretary Distributor (since December 1999);
Oaks, PA 19456 Associate at Dechert, Price &
Age: 35 Rhoads (1997 - 1999); Associate at
Richter, Miller & Finn (1993 - 1997).
Christine McCullough Vice President Since 9/01 Vice President and Assistant N/A N/A
One Freedom and Assistant Secretary of the Administrator and
Valley Drive Secretary Distributor (since November 1999);
Oaks, PA 19456 Associate at White and Williams
Age: 43 LLP (1991 - 1999); Associate at
Montgomery, McCracken, Walker
& Rhoads (1990 - 1991).
Sherry Kajdan Vice President Since 9/01 Vice President and Assistant N/A N/A
Vetterlein and Assistant Secretary of the Administrator and
One Freedom Secretary Distributor (since January 2001);
Valley Drive Shareholder/Partner, Buchanan
Oaks, PA 19456 Ingersoll Professional Corporation
Age: 41 (1992 - 2000).
William E. Vice President Since 9/01 Vice President and Assistant N/A N/A
Zitelli, Jr. and Assistant Secretary of the Administrator and
One Freedom Secretary Distributor (since September 2000);
Valley Drive Vice President, Merrill Lynch & Co.
Oaks, PA 19456 Asset Management Group (1998-2000);
Age: 35 Associate, Pepper Hamilton LLP
(1997-1998); Associate,
Reboul, MacMurray,
Hewitt, Maynard & Kristol
(prior to 1997).
- --------------------
1 Each Trustee may be contacted by writing to the Trustee c/o Causeway Capital
Management Trust, One Freedom Valley Drive, Oaks, PA 19456.
2 Each Trustee shall hold office during the lifetime of this Trust until the
election and qualification of his or her successor, or until he or she
sooner dies, resigns or is removed in accordance with the Trust's
Declaration of Trust. The president, treasurer and secretary shall hold
office for a one year term and until their respective successors are chosen
and qualified, or in each case until he or she sooner dies, resigns is
removed, or becomes disqualified in accordance with the Trust's by-laws.
3 The "Trust Complex" consists of all registered investment companies for
which Causeway Capital Management LLC serves as investment adviser. As of
September 30, 2002, the Trust Complex consisted of one investment company.
4 Directorships of companies required to report to the Securities and Exchange
Commission under the Securities Exchange Act of 1934 (i.e., "public
companies") or other investment companies registered under the 1940 Act.
5 Ms. Fermelia is considered to be an "interested" person of the Trust as
defined in Section 2(a)(19) of the 1940 Act.
- --------------------------------------------------------------------------------
24 CAUSEWAY INTERNATIONAL VALUE FUND
<page>
NOTES
<page>
NOTES
<page>
NOTES
<page>
- --------------------------------------------------------------------------------
INVESTMENT ADVISER:
Causeway Capital Management LLC
11111 Santa Monica Boulevard
Suite 1550
Los Angeles, CA 90025
DISTRIBUTOR:
SEI Investments Distribution Co.
One Freedom Valley Drive
Oaks, PA 19456
TO OBTAIN MORE INFORMATION:
Call 1-866-947-7000 or visit us online
at www.causewayfunds.com
This material must be preceded or accompanied by a current prospectus.
- --------------------------------------------------------------------------------
CCM-AR-001-0200 (9/03)
- --------------------------------------------------------------------------------
CAUSEWAY INTERNATIONAL VALUE FUND
ITEM 2. CODE OF ETHICS.
The registrant has adopted a code of ethics that applies to the registrant's
principal executive officer, principal financial officer and principal
accounting officer.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's Board of Trustees has determined that the registrant has at
least one audit committee financial expert serving on the audit committee.
The audit committee financial expert is Eric Sussman. Mr. Sussman is independent
as defined in Form N-CSR Item 3(a)(2).
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable - only effective for annual reports for periods ending on or
after December 15, 2003.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. (RESERVED)
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. (RESERVED)
ITEM 9. CONTROLS AND PROCEDURES.
(a) The certifying officers, whose certifications are included herewith, have
evaluated the registrant's disclosure controls and procedures within 90 days of
the filing date of this report. In their opinion, based on their evaluations,
the registrant's disclosure controls and procedures are adequately designed, and
are operating effectively to ensure, that material information relating to the
registrant, including its consolidated subsidiaries, is made known to them by
others within those entities, particularly during the period in which this
report is being prepared. Further, in their opinions, the registrant's
disclosure controls and procedures are adequately designed, and are operating
effectively to ensure, that information required to be disclosed by the
registrant in the reports it files or submits under the Securities Exchange Act
of 1934 is recorded, processed, summarized and reported within the time periods
specified in the Securities and Exchange Commission's rules and forms.
(b) There was no change in the registrant's internal control over financial
reporting that occurred during the registrant's second fiscal half-year that has
materially affected, or is likely to materially affect, the registrant's
internal control over financial reporting.
ITEM 10. EXHIBITS.
(a) The code of ethics that is the subject of the disclosure required by Item 2
is filed herewith.
(b) Separate certifications for the principal executive officer and the
principal financial officer of the registrant as required by Rule 30a-2 under
the Investment Company Act of 1940, as amended (17 CFR 270.30a-2) are filed
herewith. Officer certifications as required by Section 906 of the Sarbanes
Oxley Act of 2002 also accompany this filing as an Exhibit.
- --------------------------------------------------------------------------------
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) Causeway Capital Management Trust
By (Signature and Title)* /S/ TURNER SWAN
---------------
Turner Swan, President
Date 11/25/03
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /S/ TURNER SWAN
---------------
Turner Swan, President
Date 11/25/03
By (Signature and Title)* /S/ PETER GOLDEN
----------------
Peter Golden, Treasurer
Date 11/25/03
* Print the name and title of each signing officer under his or her signature.