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 811-10467
CAUSEWAY CAPITAL MANAGEMENT TRUST
(Exact name of registrant as specified in charter)
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11111 Santa Monica Boulevard, Suite 1500
Los Angeles, CA 90025
(Address of principal executive offices) (Zip code)
SEI Investments Global Funds Services
One Freedom Valley Drive
Oaks, PA 19456
(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
DATE OF REPORTING PERIOD: SEPTEMBER 30, 2008
ITEM 1. REPORTS TO STOCKHOLDERS.
(GRAPHIC)
(CAUSEWAY FUNDS LOGO)
ANNUAL REPORT
CAUSEWAY
EMERGING
MARKETS FUND
SEPTEMBER 30, 2008
TABLE OF CONTENTS
Letter to Shareholders 2
Schedule of Investments 6
Sector Diversification 12
Statement of Assets and Liabilities 13
Statement of Operations 14
Statement of Changes in Net Assets 15
Financial Highlights 16
Notes to Financial Statements 18
Report of Independent Registered Public Accounting Firm 24
Notice to Shareholders 25
Trustees and Officers Information 26
Disclosure of Fund Expenses 29
Statement Regarding Basis for Approval of Investment Advisory Agreement 31
LETTER TO SHAREHOLDERS
For the fiscal year ended September 30, 2008, the Causeway Emerging Markets Fund
Institutional Class returned -37.10% and the Investor Class returned -37.22%
compared to the MSCI Emerging Markets Index ("EM Index") return of -33.00%.
Since the Fund's inception on March 30, 2007, the annualized returns are -11.36%
for the Institutional Class and -11.33% for the Investor Class compared to the
EM Index return of -7.62% for the same period. At fiscal year-end, the Fund had
net assets of $32.18 million including a cash and cash equivalents position of
0.80%.
PERFORMANCE REVIEW
In our investment process, we use a combination of bottom-up and top-down
quantitative factors to perform security selection. The portfolio's exposure to
our bottom-up factors contributed positively to performance compared to the
benchmark EM Index over the course of the year. This was mainly attributed to
the strong performance of our valuation factors, as well as the positive
performance of earnings growth factors. Our momentum factors, on the other hand,
had significant negative relative performance. Our top-down factors, which have
a smaller weight in the model, detracted from active returns. Of these, only the
sector model contributed positively. Our top-down country and macroeconomic
factors had negative relative performance over the course of the year.
Fund holdings in the banks, real estate, and food, beverage, and tobacco
industry groups detracted from relative performance, while holdings in the
telecommunication services, capital goods, and retailing industry groups added
to relative performance during the period. At the stock level, the notable
underperformers compared to the EM Index included real estate companies Shenzhen
Investment (China), Hopson Development Holdings (China), and Hung Sheng
Construction (Taiwan), shipping company China COSCO Holdings, bank holding
company Woori Finance Holdings (Korea), and mining company KGHM Polska Miedz
(Poland). Some of the notable contributors to relative return this year were
telecommunications companies Telemar Norte Leste Participacoes (Brazil) and LG
Telecom (Korea), mining company International Nickel Indonesia, oil exploration
and production company Oil & Natural Gas Corporation (India), consumer
electronics company LG Electronics (Korea), and Bank Leumi Le-Israel Ltd.
All emerging market currencies which float freely (including the Brazilian Real,
Korean Won, and South African Rand) depreciated relative to the US dollar in the
twelve months ended September 30, 2008, further reducing emerging markets
returns for dollar-based investors. Most of the dollar increase occurred in the
third quarter of 2008, when there was a flight to quality on the part of
investors in response to the ongoing global credit crisis, as they bought the
dollar and US Treasury Bills and sold riskier emerging market currencies and
debt. The Fund constrains its relative (to the EM Index) exposures to countries
and currencies so that currency movements among emerging markets should not have
a significant impact on relative performance (although U.S. dollar movements
can).
2 CAUSEWAY EMERGING MARKETS FUND
SIGNIFICANT PORTFOLIO CHANGES
As a result of our quantitative security selection model that includes both
bottom-up as well as top-down inputs, the Fund's exposure to several industries
and countries changed during the fiscal year. The active weightings in the
energy, technology hardware & equipment, and utilities sectors increased, while
sector weightings in diversified financials, semiconductors and semiconductor
equipment, and consumer durables and apparel decreased. The largest changes in
active country weightings during the fiscal year included South Africa (+1.63%),
Thailand (+0.97%), India (+0.88%), China (-1.80%), and Malaysia (-1.52%).
Significant purchases this fiscal year included oil exploration and production
company, Petroleo Brasileiro (Brazil), natural gas producer, OAO Gazprom
(Russia), liquid crystal display manufacturer, AU Optronics (Taiwan), shipping
company, China COSCO Holdings, shipping company, STX Pan Ocean (Korea), and oil
exploration and production company, CNOOC (China). Largest sales during the
period included consumer electronics manufacturer, LG Electronics (Korea), oil
refining company, China Petroleum and Chemical Corp., metals and mining company,
MMC Norilsk Nickel (Russia), wireless telecom company, Vimpel Communications
(Russia), and metals and mining company, International Nickel Indonesia.
INVESTMENT OUTLOOK
Over the course of the fourth quarter of 2007 and the first three quarters of
2008, the global real economy as well as the global financial system witnessed
significant deterioration. In the real economy, global growth expectations
markedly decreased, with the high growth emerging market economies being most
negatively affected. Accompanying the slowdown in global growth, food and energy
inflation became less of a concern, as oil and gas, metal and agricultural
commodities, and real estate declined in price. As for the financial economy, a
crisis of confidence crippled the system as major financial institutions either
went bankrupt, merged with larger more solvent firms, or were nationalized. This
resulted in unusually wide spreads in interbank lending, commercial paper, and
mortgage markets which stifled lending transactions.
Central banks and governments have engaged in a massive response to this
financial crisis. They have injected significant liquidity into the financial
system, cut interest rates, guaranteed bank deposits, purchased troubled bank
assets, and provided emergency loans to, and in some cases nationalized, ailing
banks. In addition to providing much needed support for the financial system,
these pro-growth measures should also benefit the real economy.
The investment outlook for emerging markets looks inexpensive from a valuation
perspective as stock prices significantly declined in the fiscal year. The
forward 2009 price-to-earnings ratio for the EM Index, based on consensus
analyst expectations, is now below 10, which is attractive given the growth
prospects for emerging markets. In order for emerging markets equities to do
well going
CAUSEWAY EMERGING MARKETS FUND 3
forward, however, we need to see confidence return to the financial markets.
Various measures of investor confidence such as the VIX (the Chicago Board
Options Exchange Volatility Index for the S&P 500), the EMBI (Emerging Markets
Bond Index) yield spread over US treasuries, and the TED (Eurodollar - US
Treasury yields) spread are all trading sharply higher as the flight to quality
has driven investors to seek safety in US Treasury bills. Certainly the policy
response on the part of governments has been significant, which should result in
a restoration of confidence in the financial system and support global growth.
Their successes in implementing these measures will determine how quickly
emerging markets resume their upward trajectory.
Our investment philosophy in these unusual times is to combine value and growth
factors, as well as bottom-up and top-down factors to exploit all the sources of
alpha that exist in emerging market equities. During this period of
unprecedented market volatility and uncertainty, we believe a disciplined
multi-factor approach is appropriate. Our process balances value versus growth
in stock, country and sector selection. We also monitor the financial leverage
and volatility of earnings of stocks in the Fund, as we realize that stocks with
modest leverage and stable earnings should perform well in periods of
uncertainty. Lastly, our process uses quantitative alpha models, risk models,
and optimization to construct portfolios. We believe that this disciplined
approach is well-suited for the current period, when emotions can lead to
indiscriminate selling, and irrational equity prices.
We thank you for your continued confidence in Causeway Emerging Markets Fund and
look forward to serving you in the future.
/s/ Arjun Jayaraman /s/ MacDuff Kuhnert
Arjun Jayaraman MacDuff Kuhnert
Portfolio Manager Portfolio Manager
October 20, 2008
4 CAUSEWAY EMERGING MARKETS FUND
COMPARISON OF CHANGE IN THE VALUE OF A $10,000 INVESTMENT IN CAUSEWAY EMERGING
MARKETS FUND, INSTITUTIONAL CLASS SHARES AND INVESTOR CLASS SHARES VERSUS THE
MSCI EMERGING MARKETS INDEX
[PERFORMANCE GRAPH]
Causeway Causeway
Emerging Emerging
Markets Markets MSCI
Fund, Fund, Emerging
Institutional Investor Markets
Class Class Index
- --------- ------------- -------- --------
3/29/07 $10,000 $10,000 $10,000
9/30/07 13,260 13,290 13,244
9/30/08 8,341 8,344 8,873
Annualized
One Year Inception
Return to Date
-------- ----------
Institutional
Class -37.10% -11.36%
Investor -37.22% -11.33%
MSCI Emerging
Markets Index -33.00% -7.62%
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 Emerging Markets Fund is March 30, 2007.
THE PERFORMANCE DATA REPRESENTS PAST PERFORMANCE AND IS NOT AN INDICATION OF
FUTURE RESULTS. INVESTMENT RETURN AND THE PRINCIPAL VALUE OF AN INVESTMENT WILL
FLUCTUATE SO THAT AN INVESTOR'S SHARES, WHEN REDEEMED, MAY BE WORTH LESS THAN
THEIR ORIGINAL COST AND CURRENT PERFORMANCE MAY BE HIGHER OR LOWER THAN THE
PERFORMANCE QUOTED. FOR PERFORMANCE DATA CURRENT TO THE MOST RECENT MONTH END,
PLEASE CALL 1-866-947-7000 OR VISIT www.causewayfunds.com. 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 SERVICE FEE OF UP TO 0.25% PER ANNUM OF AVERAGE DAILY
NET ASSETS. INSTITUTIONAL CLASS SHARES HAVE NO SHAREHOLDER SERVICE FEE. FOR MORE
INFORMATION, PLEASE SEE THE PROSPECTUS.
THE MSCI EMERGING MARKETS INDEX IS A FREE FLOAT-ADJUSTED MARKET CAPITALIZATION
INDEX THAT IS DESIGNED TO MEASURE EQUITY MARKET PERFORMANCE IN THE GLOBAL
EMERGING MARKETS. THE INDEX DOES NOT REFLECT THE PAYMENT OF TRANSACTION COSTS,
FEES AND EXPENSES ASSOCIATED WITH AN INVESTMENT IN 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).
CAUSEWAY EMERGING MARKETS FUND 5
SCHEDULE OF INVESTMENTS (000)*
SEPTEMBER 30, 2008
NUMBER OF
CAUSEWAY EMERGING MARKETS FUND SHARES VALUE
- ------------------------------ ---------- -------
COMMON STOCK
BRAZIL -- 10.0%
Brasil Telecom SA ADR 5,900 $ 129
Centrais Eletricas Brasileiras SA 15,000 218
Cia de Saneamento Basico do Estado de Sao Paulo ADR 17,100 485
Cia Vale do Rio Doce ADR 27,300 523
Petroleo Brasileiro SA ADR 40,100 1,602
Sadia SA ADR 8,600 80
Tele Norte Leste Participacoes SA ADR 11,100 194
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3,231
-------
CHINA -- 13.1%
Bank of China Ltd.(2) 565,000 219
Canadian Solar Inc.(1) 9,500 185
Chaoda Modern Agriculture(2) 306,575 259
China Agri Industries Holdings Ltd.(1, 2) 217,000 114
China Construction Bank Corp., Class H(2) 951,000 635
China COSCO Holdings Co. Ltd., Class H(2) 356,500 325
China Mobile Ltd. ADR 11,900 596
CNOOC Ltd. ADR 5,800 664
Dongfeng Motor Group Co. Ltd., Class H(2) 186,000 68
FerroChina Ltd.(2, 3) 258,000 116
Lenovo Group Ltd.(2) 126,000 56
Netease.com ADR(1) 6,400 146
Shanghai Jinjiang International, Class B 56,200 43
Shenzhen Investment Ltd.(2) 1,296,000 194
Sino Techfibre Ltd.(2) 760,000 172
Sohu.com Inc.(1) 3,500 195
Weiqiao Textile Co. Ltd., Class H(2) 271,500 133
Yanzhou Coal Mining Co. Ltd. ADR 10,500 110
-------
4,230
-------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
6 CAUSEWAY EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (000)* (CONTINUED)
SEPTEMBER 30, 2008
NUMBER OF
CAUSEWAY EMERGING MARKETS FUND SHARES VALUE
- ------------------------------ ---------- -------
CZECH REPUBLIC -- 0.4%
CEZ(2) 2,270 $ 141
-------
HONG KONG -- 0.6%
Hopson Development Holdings Ltd.(2) 384,000 195
-------
INDIA -- 6.9%
Bank of India(2) 55,708 345
IDBI Bank Ltd.(2) 84,300 137
Infosys Technologies Ltd. ADR 7,000 233
Oil & Natural Gas Corp. Ltd.(2) 31,697 709
Reliance Industries Ltd.(2) 14,691 620
Sesa GOA Ltd.(2) 61,680 160
-------
2,204
-------
INDONESIA -- 2.3%
Astra Agro Lestari Tbk PT(2) 48,000 65
Bank Mandiri Persero(2) 763,500 212
Indah Kiat Pulp and Paper Corp.(1, 2) 988,000 163
Indofood Sukses Makmur Tbk PT(2) 1,174,000 241
United Tractors Tbk PT(2) 63,000 62
-------
743
-------
ISRAEL -- 4.5%
Bank Hapoalim BM(2) 135,158 409
Bank Leumi Le-Israel BM(2) 192,075 673
Cellcom Israel Ltd. 37 1
Delek Group Ltd.(2) 872 73
Israel Chemicals Ltd.(2) 12,807 185
Teva Pharmaceutical Industries Ltd. ADR 2,324 106
-------
1,447
-------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
CAUSEWAY EMERGING MARKETS FUND 7
SCHEDULE OF INVESTMENTS (000)* (CONTINUED)
SEPTEMBER 30, 2008
NUMBER OF
CAUSEWAY EMERGING MARKETS FUND SHARES VALUE
- ------------------------------ ---------- -------
MALAYSIA -- 0.5%
Affin Holdings Bhd(2) 234,100 $ 109
KNM Group Bhd(2) 25 --
Public Bank Bhd(2) 12,600 37
-------
146
-------
MEXICO -- 4.1%
Alfa SAB de CV, Class A 60,600 273
America Movil SAB de CV ADR, Class L 4,300 199
Grupo Mexico SAB de CV, Class B 173,010 182
Grupo Televisa SA ADR 15,600 341
Mexichem SAB de CV 176,400 321
-------
1,316
-------
POLAND -- 3.5%
Grupa Lotos SA(1, 2) 8,769 99
KGHM Polska Miedz SA(2) 24,695 523
Polski Koncern Naftowy Orlen SA(2) 20,629 298
Telekomunikacja Polska SA(2) 22,262 213
-------
1,133
-------
RUSSIA -- 8.5%
Evraz Group SA GDR(2) 6,750 260
LUKOIL ADR 9,350 550
Mechel ADR 10,500 189
Mobile Telesystems ADR 8,200 459
OAO Gazprom ADR(2) 23,600 754
OAO Gazprom(2) 36,629 297
Rosneft Oil Co.(2) 22,000 152
Vimpel-Communications ADR 3,000 61
-------
2,722
-------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
8 CAUSEWAY EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (000)* (CONTINUED)
SEPTEMBER 30, 2008
NUMBER
CAUSEWAY EMERGING MARKETS FUND OF SHARES VALUE
- ------------------------------ ---------- -------
SOUTH AFRICA -- 8.1%
ABSA Group Ltd.(2) 12,969 $ 172
African Rainbow Minerals Ltd.(2) 17,283 333
Imperial Holdings Ltd.(2) 21,107 152
Investec Ltd.(2) 38,561 226
Metropolitan Holdings Ltd.(2) 150,356 204
MTN Group Ltd.(2) 43,910 621
Remgro Ltd.(2) 2,926 68
Sanlam Ltd.(2) 97,191 210
Sasol Ltd. ADR 4,200 179
Shoprite Holdings Ltd.(2) 75,752 432
-------
2,597
-------
SOUTH KOREA -- 14.5%
Hana Financial Group Inc.(2) 10,350 244
Honam Petrochemical Corp.(2) 1,451 84
Hyundai Mipo Dockyard(2) 1,763 258
Industrial Bank of Korea(2) 40,670 492
Korea Gas Corp.(2) 704 41
LG Chemical Ltd.(2) 8,613 676
LG Display Co. Ltd. ADR 31,900 405
LG Telecom Ltd.(2) 90,081 752
POSCO ADR 1,200 112
Pusan Bank(2) 30,390 275
Samsung Electronics Co. Ltd.(2) 829 380
STX Pan Ocean Co. Ltd.(2) 309,717 431
Woori Finance Holdings Co. Ltd.(2) 51,620 530
-------
4,680
-------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
CAUSEWAY EMERGING MARKETS FUND 9
SCHEDULE OF INVESTMENTS (000)* (CONTINUED)
SEPTEMBER 30, 2008
NUMBER
CAUSEWAY EMERGING MARKETS FUND OF SHARES VALUE
- ------------------------------ ---------- -------
TAIWAN -- 11.5%
AU Optronics Corp. ADR 58,064 $ 660
China Development Financial Holding Corp.(2) 1,349,925 408
Chunghwa Telecom Co. Ltd. ADR 21,800 516
Compal Electronics Inc.(2) 832,536 608
Dynapack International Technology Corp.(2) 54,000 147
Great Wall Enterprise Co.(2) 9,472 9
Hung Sheng Construction Co. Ltd.(2) 711,000 195
Lee Chang Yung Chemical Industry Corp.(2) 172 --
Lite-On Technology Corp.(2) 285,420 249
Micro-Star International Co. Ltd.(2) 175,816 80
Quanta Computer Inc.(2) 280,000 350
Taiwan Semiconductor Manufacturing Co. Ltd. ADR 10,207 96
Unitech Printed Circuit Board Corp.(2) 172,205 68
Universal Scientific Industrial Co. Ltd(2) 397,242 130
WPG Holdings Co. Ltd.(2) 251,990 199
-------
3,715
-------
THAILAND -- 2.8%
G Steel(2) 10,000,000 376
PTT Aromatics & Refining(2) 36 --
PTT Exploration & Production(2) 70,500 267
Thoresen Thai Agencies(2) 323,200 251
-------
894
-------
TURKEY -- 1.7%
Dogan Sirketler Grubu Holdings(2) 462,790 534
-------
TOTAL COMMON STOCK
(COST $44,525) -- 93.0% 29,928
-------
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
10 CAUSEWAY EMERGING MARKETS FUND
SCHEDULE OF INVESTMENTS (000)* (CONCLUDED)
SEPTEMBER 30, 2008
NUMBER
CAUSEWAY EMERGING MARKETS FUND OF SHARES VALUE
- ------------------------------ ---------- -------
PREFERRED STOCK
BRAZIL -- 5.2%
Cia de Transmissao de Energia Eletrica Paulista 8,600 $ 218
Eletropaulo Metropolitana Eletricidade de Sao Paulo SA 30,529 419
Investimentos Itau SA 64,779 318
Metalurgica Gerdau SA, Class A 24,500 378
Telemar Norte Leste SA 9,709 296
Usinas Siderurgicas de Minas Gerais SA 2,400 51
-------
TOTAL PREFERRED STOCK
(COST $2,602) -- 5.2% 1,680
-------
SHORT TERM INVESTMENT
Dreyfus Treasury Prime Cash Management, 0.930%** 247,083 247
-------
TOTAL SHORT-TERM INVESTMENT
(COST $247) -- 0.8% 247
-------
EXCHANGE TRADED FUND
UNITED STATES -- 0.8%
Vanguard Emerging Markets Fund 7,300 253
-------
TOTAL EXCHANGE TRADED FUND
(COST $262) -- 0.8% 253
-------
TOTAL INVESTMENTS -- 99.8%
(COST $47,636) 32,108
-------
OTHER ASSETS IN EXCESS OF LIABILITIES -- 0.2% 68
-------
NET ASSETS -- 100.0% $32,176
=======
* Except for share data.
** The rate shown represents the 7-day effective yield as of September 30,
2008.
ADR American Depositary Receipt
GDR Global Depositary Receipt
1 Non-income producing security.
2 Security is fair valued (see note 2 in the Notes to Financial Statements).
3 Subsequent to fiscal year end, security has no value due to company's
insolvency.
Amounts designated as "--"are $0 or are rounded to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
CAUSEWAY EMERGING MARKETS FUND 11
SECTOR DIVERSIFICATION
AS OF SEPTEMBER 30, 2008, THE SECTOR DIVERSIFICATION WAS AS FOLLOWS:
COMMON PREFERRED EXCHANGE % OF
CAUSEWAY EMERGING MARKETS FUND STOCK STOCK TRADED FUND NET ASSETS
- ------------------------------ ------ --------- ----------- ----------
Financials 19.2% 1.0% 0.8% 21.0%
Energy 19.6 0.0 0.0 19.6
Materials 14.2 1.3 0.0 15.5
Information Technology 9.9 0.0 0.0 12.6
Telecommunication Services 11.7 0.9 0.0 12.6
Industrials 9.0 0.0 0.0 9.0
Consumer Staples 3.7 0.0 0.0 3.7
Consumer Discretionary 2.7 0.0 0.0 2.7
Utilities 2.7 2.0 0.0 4.7
Health Care 0.3 0.0 0.0 0.3
---- --- --- -----
TOTAL 93.0% 5.2% 0.8% 99.0%
==== === === =====
SHORT-TERM INVESTMENT 0.8
EXCESS OF CASH AND RECEIVABLES
OVER PAYABLES 0.2
-----
NET ASSETS 100.0%
=====
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
12 CAUSEWAY EMERGING MARKETS FUND
STATEMENT OF ASSETS AND LIABILITIES (000)*
CAUSEWAY
EMERGING
MARKETS FUND
------------
9/30/08
------------
ASSETS:
Investments at Market Value (Cost $ 47,636) $ 32,108
Receivable for Dividends and Interest 296
Receivable for Investment Securities Sold 163
Receivable for Fund Shares Sold 21
Receivable for Tax Reclaims 1
--------
TOTAL ASSETS 32,589
--------
LIABILITIES:
Payable for Investment Securities Purchased 262
Payable for Foreign Currency 28
Payable for Fund Shares Redeemed 22
Payable due to Investment Adviser 16
Payable for Shareholder Service Fees -- Investor Class 8
Accumulated Foreign Capital Gains Tax on Appreciated
Securities 7
Payable due to Administrator 1
Payable for Trustees' Fees 1
Other Accrued Expenses 68
--------
TOTAL LIABILITIES 413
--------
NET ASSETS $ 32,176
========
NET ASSETS:
Paid-in Capital (unlimited authorization -- no par value) $ 48,492
Undistributed Net Investment Income 554
Accumulated Net Realized Loss on Investments (1,329)
Accumulated Foreign Capital Gains Tax on Appreciated
Securities (7)
Net Unrealized Depreciation on Investments (15,528)
Net Unrealized Depreciation on Foreign Currencies and
Translation of Other Assets and Liabilities
Denominated in Foreign Currencies (6)
--------
NET ASSETS $ 32,176
========
NET ASSET VALUE PER SHARE (BASED ON NET ASSETS OF
$28,851,382 / 3,625,831 SHARES) -- INSTITUTIONAL CLASS $ 7.96
========
NET ASSET VALUE PER SHARE (BASED ON NET ASSETS OF
$3,324,721 / 417,257 SHARES) -- INVESTOR CLASS $ 7.97
========
* Except for Net Asset Value data.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
CAUSEWAY EMERGING MARKETS FUND 13
STATEMENT OF OPERATIONS (000)
CAUSEWAY
EMERGING
MARKETS FUND
------------
10/01/07 to
9/30/08
------------
INVESTMENT INCOME:
Dividend Income (net of foreign taxes withheld of $ 162) $ 1,300
Interest Income 9
--------
TOTAL INVESTMENT INCOME 1,309
--------
EXPENSES:
Investment Advisory Fees 334
Shareholder Service Fees -- Investor Class 16
Administration Fees 15
Custodian Fees 64
Professional Fees 55
Transfer Agent Fees 47
Registration Fees 19
Trustees' Fees 2
Printing Fees (25)
Other Fees 9
--------
TOTAL EXPENSES 536
Less:
Waiver of Investment Advisory Fees (70)
--------
NET EXPENSES 466
--------
NET INVESTMENT INCOME 843
--------
NET REALIZED AND UNREALIZED GAIN (Loss) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS:
Net Realized Loss from Security Transactions (751)
Net Realized Loss from Foreign Currency Transactions (39)
Net Change in Unrealized Depreciation on Investments (19,316)
Net Change in Foreign Capital Gains Tax on Appreciated
Securities --
Net Change in Unrealized Depreciation on Foreign Currency
and Translation of Other Assets and Liabilities
Denominated in Foreign Currency (7)
--------
NET REALIZED AND UNREALIZED LOSS ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS (20,113)
--------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $(19,270)
========
Amounts designated as "--" are $0 or are rounded to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
14 CAUSEWAY EMERGING MARKETS FUND
STATEMENT OF CHANGES IN NET ASSETS (000)
CAUSEWAY EMERGING MARKETS FUND
------------------------------
10/01/07 to 3/30/07(1) to
9/30/08 9/30/07
------------- --------------
OPERATIONS:
Net Investment Income $ 843 $ 115
Net Realized Gain (Loss) from Security Transactions (751) 412
Net Realized Loss from Foreign Currency Transactions (39) (26)
Net Change in Unrealized Appreciation (Depreciation) on Investments (19,316) 3,788
Net Change in Foreign Capital Gains Tax on Appreciated Securities -- (7)
Net Change in Unrealized Appreciation (Depreciation) on Foreign
Currency and Translation of Other Assets and Liabilities
Denominated in Foreign Currency (7) 1
-------- -------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (19,270) 4,283
-------- -------
DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
Net Investment Income Dividends:
Institutional Class (348) --
Investor Class (106) --
-------- -------
Total Net Investment Income Dividends (454) --
-------- -------
Net Capital Gain Distributions:
Institutional Class (663) --
Investor Class (212) --
-------- -------
Total Net Capital Gain Distributions (875) --
-------- -------
TOTAL DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS (1,329) --
-------- -------
NET INCREASE IN NET ASSETS DERIVED FROM CAPITAL SHARE TRANSACTIONS(2) 25,865 22,610
Redemption Fees(3) 17 --
-------- -------
TOTAL INCREASE IN NET ASSETS 5,283 26,893
-------- -------
NET ASSETS:
Beginning of Period 26,893 --
-------- -------
END OF PERIOD $ 32,176 $26,893
======== =======
UNDISTRIBUTED NET INVESTMENT INCOME $ 554 $ 99
======== =======
(1) Commencement of operations.
(2) See Note 7 in the Notes to Financial Statements.
(3) See Note 2 in the Notes to Financial Statements.
Amounts designated as "--" are $0 or are rounded to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
CAUSEWAY EMERGING MARKETS FUND 15
FINANCIAL HIGHLIGHTS
FOR THE YEAR OR PERIOD ENDED SEPTEMBER 30,
FOR A SHARE OUTSTANDING THROUGHOUT THE PERIODS
Net Realized
and
Net Asset Unrealized Dividends Distributions Total
Value, Net Gain Total from Net from Dividends
Beginning Investment (Loss) on from Investment Capital and Redemption
of Period Income Investments Operations Income Gains Distributions Fees
($) ($) ($) ($) ($) ($) ($) ($)
--------- ---------- ------------ ---------- ---------- ------------- ------------- ----------
CAUSEWAY EMERGING MARKETS FUND+
INSTITUTIONAL CLASS
2008 13.26 0.31 (5.00) (4.69) (0.21) (0.40) (0.61) --
2007(1) 10.00 0.08 3.18 3.26 -- -- -- --
INVESTOR CLASS
2008 13.29 0.22 (4.94) (4.72) (0.20) (0.40) (0.60) --
2007(1) 10.00 0.06 3.23 3.29 -- -- -- --
(1) Commenced operations on March 30, 2007. All ratios are annualized. Total
return and portfolio turnover rate are for the period indicated and have
not been annualized.
+ Per share amounts calculated using average shares method.
Amounts designated as "--" are $0 or are rounded to $0.
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
16 CAUSEWAY EMERGING MARKETS FUND
Ratio of
Expenses Ratio
to Average of Net
Net Assets Ratio of Net Investment
Net Asset End of Expenses to Assets Income Portfolio
Value, End Total Period Average Net (Excluding to Average Turnover
of Period ($) Return(%) ($ 000) Assets (%) Waivers) (%) Net Assets (%) Rate(%)
- ------------- --------- ---------- ----------- ------------ -------------- ----------
7.96 (37.10) 28,851 1.35 1.56 2.69 100
13.26 32.60 22,376 1.35 3.24 1.44 77
7.97 (37.22) 3,325 1.60 1.82 1.79 100
13.29 32.90 4,517 1.58 3.16 1.02 77
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
CAUSEWAY EMERGING MARKETS FUND 17
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION
Causeway Emerging Markets 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 March 30, 2007. 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. The Trust has two
additional series, the financial statements of which are presented separately.
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 generally accepted accounting principles
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 and liabilities at the date of the financial
statements and the reported amounts of increases and decreases in net assets
from operations during the reporting period. Actual results could differ from
those estimates.
SECURITY VALUATION - Except as described below, securities listed on a
securities exchange, market or automated quotation system for which quotations
are readily available are valued at the last reported sale price on the primary
exchange or market (foreign or domestic) on which they are traded, or, if there
is no such reported sale, at the last reported bid price. The prices for foreign
securities are reported in local currency and converted to U.S. dollars using
currency exchange rates. Prices for most securities held in the Fund are
provided daily by recognized independent pricing agents. If a security price
cannot be obtained from an independent pricing agent, the Fund seeks to obtain a
bid price from at least one independent broker.
Securities for which market prices are not "readily available" are valued in
accordance with fair value pricing procedures approved by the Fund's Board of
Trustees (the "Board"). The Fund's fair value pricing procedures are implemented
through a Fair Value Committee (the "Committee") designated by the Board. Some
of the more common reasons that may necessitate that a security be valued using
fair value pricing procedures include: the security's trading has been halted or
suspended; the security has been de-listed from a national exchange; the
security's primary trading market is temporarily closed at a time when under
normal conditions it would be open; or the security's primary pricing source is
not able or willing to provide a price. When the Committee values a security in
accordance with the fair value pricing procedures, the Committee will determine
the value after taking into consideration relevant information reasonably
available to the Committee.
18 CAUSEWAY EMERGING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
The Fund uses a third party vendor to fair value certain non-U.S. securities if
there is a movement in the U.S. market that exceeds thresholds established by
the Committee. The vendor provides a fair value for foreign securities based on
factors and methodologies involving, generally, tracking valuation correlations
between the U.S. market and each non-U.S. security.
CASH AND CASH EQUIVALENTS -- Investments in the Dreyfus Treasury Prime Cash
Management money market fund are valued daily at the net asset value per share.
SECURITY TRANSACTIONS AND RELATED INCOME -Security transactions are accounted
for on the date the security is purchased or sold (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.
FOREIGN CURRENCY TRANSLATION - The books and records of the Fund are maintained
in U.S. dollars on the following basis:
(1) the market value of investment securities, assets and liabilities is
converted at the current rate of exchange; and
(2) purchases and sales of investment securities, income and expenses are
converted at the relevant rates of exchange prevailing on the respective
dates 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.
FOREIGN CURRENCY EXCHANGE CONTRACTS - When the Fund purchases or sells foreign
securities, it may enter into foreign currency exchange contracts to minimize
foreign exchange risk from the trade date to the settlement date of the
transaction. Losses from these transactions may arise from changes in the value
of the foreign currency or if the counterparties do not perform under the
contract's terms.
EXPENSE/CLASSES - Expenses that are directly related to one Fund of the Trust
are charged directly to that Fund. Other operating expenses of the Trust are
prorated to the Fund and the other series of the Trust on the basis of relative
daily net assets. 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, if any, are
declared and paid on an annual basis. Any net realized capital gains on sales of
securities are distributed to shareholders at least annually.
REDEMPTION FEE - During the fiscal year, the Fund imposed a redemption fee of 2%
on the original value of capital shares redeemed by shareholders less than 90
days after purchase. (Effective December 1, 2008, the redemption fee period will
be reduced to 60 days.) The redemption fee does not apply to shares purchased
through reinvested distributions, shares redeemed through designated systematic
withdrawal plans, or omnibus account
CAUSEWAY EMERGING MARKETS FUND 19
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
arrangements through financial intermediaries where the purchase and sale orders
of a number of persons are aggregated before being communicated to the Fund.
However, the Fund seeks agreements with these intermediaries to impose the
Fund's redemption fee or a different redemption fee on their customers if
feasible, or to impose other appropriate restrictions on excessive short-term
trading. For the fiscal year ended September 30, 2008, the Institutional Class
and Investor Class received $9,127 and $8,345 in redemption fees, respectively.
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
"Adviser"). Under the Advisory Agreement, the Adviser is entitled to a monthly
fee equal to an annual rate of 1.00% of the Fund's average daily net assets. The
Adviser contractually agreed through September 30, 2008 to waive its fee and, to
the extent necessary, reimburse the Fund to keep total annual fund operating
expenses (excluding brokerage fees and commissions, interest, taxes, fees and
expenses of other funds in which the Fund invests, and extraordinary expenses)
from exceeding 1.35% and 1.60% of Institutional Class and Investor Class average
daily net assets, respectively. For the year ended September 30, 2008, the
Adviser waived $69,748.
The Trust and SEI Investments Global Funds Services (the "Administrator") have
entered into an Administration Agreement. Effective January 1, 2006, 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 Trust as follows: 0.06% up to $1 billion; 0.05%
of the assets exceeding $1 billion up to $2 billion; 0.04% of the assets
exceeding $2 billion up to $3 billion; 0.03% of the assets exceeding $3 billion
up to $4 billion; and 0.02% of the assets exceeding $4 billion. The Trust is
subject to a minimum annual fee of $165,000 for all portfolios and classes in
existence on the agreement date increased by $80,000 for any portfolio created
thereafter and increased by $20,000 for each new class in excess of two added
after the agreement date.
The Trust has adopted a Shareholder Service Plan and Agreement for Investor
Class shares that allows the Trust 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 Investor Class shareholders. For the year ended September
30, 2008, the Investor Class paid 0.25% of average daily net assets under this
plan.
The Trust and SEI Investments Distribution Co. (the "Distributor") have entered
into a Distribution Agreement. The Distributor receives no fees for its
distribution services under this agreement.
The officers of the Trust are also officers or employees of the Administrator,
Distributor or Adviser. They receive no fees for serving as officers of the
Trust.
4. INVESTMENT TRANSACTIONS
The cost of security purchases and the proceeds from the sale of securities,
other than short-term
20 CAUSEWAY EMERGING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
investments, during the year ended September 30, 2008, for the Fund were as
follows:
Purchases Sales
(000) (000)
- --------- -------
$57,716 $32,531
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 U.S. as a result of, among other factors, the
possibility of future social, political and economic developments and the level
of governmental supervision and regulation of securities markets in different
foreign countries. These risks are higher for emerging markets investments.
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 dividends from net investment income
and distributions from 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.
Dividend and interest income is recorded net of non-U.S. taxes paid. Gains
realized by the Fund on the sale of securities in certain countries are subject
to non-U.S. taxes. The Fund records a liability based on unrealized gains to
provide for potential non-U.S. taxes payable upon the sale of these securities.
For the year ended September 30, 2008, non-U.S. taxes paid on realized gains
were $0 and non-U.S. taxes accrued on unrealized gains were $6,623.
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 generally accepted accounting
principles in the United States of America. These book/tax differences are
either temporary or permanent in nature. 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.
Accordingly, the following permanent differences, which are primarily due to
realized losses on foreign currency transactions and reclassifications of
realized gains from passive foreign investment companies, were reclassified
to/(from) the following accounts as of September 30, 2008 (000):
Undistributed Accumulated
Net Investment Net Realized
Income Gain
- -------------- ------------
$66 $(66)
These reclassifications had no impact on net assets or net asset value per
share.
CAUSEWAY EMERGING MARKETS FUND 21
NOTES TO FINANCIAL STATEMENTS
(CONTINUED)
The tax character of dividends and distributions declared during the year ended
September 30, 2008, were as follows (000):
Ordinary Long-Term
Income Capital Gain Total
-------- ------------ ------
2008 $1,329 $-- $1,329
As of September 30, 2008, the components of accumulated losses on a tax basis
were as follows (000):
Undistributed Ordinary Income $ 591
Unrealized Depreciation (15,737)
Post-October Losses (1,133)
Post-October Accumulated Losses (37)
--------
Total Distributable Income $(16,316)
========
Post-October losses and Post-October currency losses represent losses realized
on securities and currency transactions from November 1, 2007 through September
30, 2008 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, 2008, 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 Depreciation
- -------- ----------- ----------- ------------
$47,832 $60 $(15,784) $(15,724)
7. CAPITAL SHARES ISSUED AND REDEEMED (000)
Year Ended 3/30/07(1) to
September 30, 2008 9/30/07
------------------ ----------------
SHARES VALUE SHARES VALUE
------- -------- ------ -------
INSTITUTIONAL CLASS:
Shares Sold 1,911 $23,873 1,736 $19,177
Shares Issued in Reinvestment of
Dividends and Distributions 76 976 -- --
Shares Redeemed (49) (641) (49) (590)
----- ------- ----- -------
Increase in Shares Outstanding Derived
from Institutional Class Transactions 1,938 24,208 1,687 18,587
----- ------- ----- -------
INVESTOR CLASS:
Shares Sold 400 5,301 348 4,127
Shares Issued in Reinvestment of
Dividends and Distributions 24 306 -- --
Shares Redeemed (347) (3,950) (8) (104)
----- ------- ----- -------
Increase in Shares Outstanding Derived
from Investor Class Transactions 77 1,657 340 4,023
----- ------- ----- -------
Increase in Shares Outstanding
from Capital Share Transactions 2,015 $25,865 2,027 $22,610
===== ======= ===== =======
(1) Commencement of operations.
22 CAUSEWAY EMERGING MARKETS FUND
NOTES TO FINANCIAL STATEMENTS
(CONCLUDED)
8. RECENT ACCOUNTING PRONOUNCEMENTS
In June 2006, the Financial Accounting Standards Board (FASB) issued FASB
interpretation No. 48 -- Accounting for Uncertainty in Income Taxes (FIN 48), an
interpretation of FASB Statement 109 that requires additional tax disclosures
and the tax effects of certain income tax positions, whether on previously filed
tax returns or those expected to be taken on future returns. These positions
must meet a more-likely-than-not standard that, based on the technical merits,
they have a more than 50 percent likelihood of being sustained upon examination.
In evaluating whether a tax position has met the more-likely-than-not
recognition threshold, management of the Fund must presume that the position
will be examined by the appropriate taxing authority that has full knowledge of
all relevant information.
FIN 48 requires management of the Fund to analyze all open tax years, as defined
by the statute of limitations, for all major jurisdictions. Open tax years are
those that are open for examination by taxing authorities.
Management of the Fund has reviewed all open tax years and major jurisdictions
and concluded that the adoption of FIN 48 resulted in no effect to the Fund's
tax liability, financial position or results of operations. There is no tax
liability resulting from unrecognized tax benefits related to uncertain income
tax positions taken or expected to be taken in future tax returns. The Fund is
also not aware of any tax positions for which it is reasonably possible that the
total amounts of unrecognized tax benefits will significantly change in the next
12 months.
The Financial Accounting Standards Board (FASB) issued Statement of Financial
Accounting Standards No. 157, "Fair Value Measurements" (FAS 157), in September
2006, which is effective for fiscal years beginning after November 15, 2007. FAS
157 defines fair value, establishes a framework for measuring fair value and
expands the required financial statement disclosures about fair value
measurements. Management has reviewed the statement and has determined that the
adoption of FAS 157 will not materially impact the determination of fair value.
In March 2008, the FASB issued Statement of Financial Accounting Standards No.
161, "Disclosures about Derivative Instruments and Hedging Activities -- an
amendment of FASB Statement No 133" (FAS 161). FAS 161 is effective for fiscal
years beginning after November 15, 2008. FAS 161 amends and expands disclosures
about derivative instruments and hedging activities. FAS 161 requires
qualitative disclosures about the objectives and strategies of derivative
instruments, quantitative disclosures about the fair value amounts of and gains
and losses on derivative instruments, and disclosures of credit-risk-related
contingent features in hedging activities. Management is currently evaluating
the impact that adopting FAS 161 will have on the financial statement
disclosures.
CAUSEWAY EMERGING MARKETS FUND 23
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees and Shareholders of
Causeway Emerging Markets Fund
In our opinion, the accompanying statement of assets and liabilities, including
the schedule of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Causeway Emerging Markets Fund (the
"Fund") at September 30, 2008, the results of its operations for the year then
ended, the changes in its net assets and the financial highlights for each of
the periods presented, 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 the standards of the
Public Company Accounting Oversight Board (United States). Those standards
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 audit, which included
confirmation of securities at September 30, 2008 by correspondence with the
custodian and brokers, provides a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Los Angeles, California
November 26, 2008
24 CAUSEWAY EMERGING MARKETS FUND
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 2009. Please
consult your tax adviser for proper treatment of this information.
For the fiscal year ended September 30, 2008, the Fund is designating the
following items with regard to distributions paid during the year:
(A) (B) (E)
Long Term Ordinary (C) (D) Dividends(1)
Capital Gains Income Tax Exempt Total for Corporate
Distributions Distributions Distributions Distributions Dividends Received
(Tax Basis) (Tax Basis) (Tax Basis) (Tax Basis) Deduction
- ------------- ------------- ------------- ------------- ------------------
0.00% 100.00% 0.00% 100.00% 0.00%
(I)
(F) Qualified
Qualified (G) (H) Short-Term
Dividend Income Foreign Interest Capital
(15% Tax Rate Tax Related Gain
for QDI) Credit Dividends Dividends
- --------------- ------- --------- ----------
22.17% 10.86% 1.56% 100.00%
Foreign taxes accrued during the fiscal year ended September 30, 2008, amounted
to $161,822 and are expected to be passed through to shareholders as foreign tax
credits on Form 1099 - Dividend for the year ending December 31, 2008. In
addition, for the fiscal year ended September 30, 2008, gross income derived
from sources within foreign countries amounted to $1,447,198 for the Fund.
(1) Qualified 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 excluding pass-through as foreign tax credit.
Item (E) is based on a percentage of ordinary income distributions of the Fund.
Item (F) represents the amount of "Qualified 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 up to 100%.
Item (G) is based on a percentage of ordinary income distributions of the Fund.
Item (H) is the amount of "Interest Related Dividends" as created by the
American Jobs Creation Act of 2004 and is reflected as a percentage of net
investment income distributions that is exempt from U.S. withholding tax when
paid to foreign investors.
Item (I) is the amount of "Qualified Short-Term Capital Gain Dividends" as
created by the American Jobs Creation Act of 2004 and is reflected as a
percentage of short-term capital gain distributions that is exempt from U.S.
withholding tax when paid to foreign investors.
CAUSEWAY EMERGING MARKETS FUND 25
TRUSTEES AND OFFICERS 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." The Trust's Statement of Additional Information
("SAI") includes additional information about the Trustees and Officers. The SAI
may be obtained without charge by calling 1-866-947-7000.
TERM OF NUMBER OF
OFFICE PORTFOLIOS
AND PRINCIPAL IN TRUST
NAME POSITION(S) LENGTH OF OCCUPATION(S) COMPLEX OTHER
ADDRESS, HELD WITH THE TIME DURING PAST OVERSEEN BY DIRECTORSHIPS HELD
AGE(1) COMPANY SERVED(2) FIVE YEARS BOARD MEMBER(3) BY BOARD MEMBER(4)
- ---------------- -------------- ------------ ------------------------------------- --------------- ----------------------
INDEPENDENT
BOARD MEMBERS(5)
John A. G. Gavin Trustee Since 9/01 Chairman, Gamma Holdings 3 Director, TCW Funds,
Age: 77 (international consulting and Inc. and TCW Strategic
investment holding company) (since Income Fund, Inc.;
1968); Senior Counselor, Hicks Trustee, Hotchkis and
TransAmerica Partners (private equity Wiley Funds; Director,
investment firm) (since 2001). Claxson, S.A.
Eric H. Sussman Trustee Since 9/01 Tenured Lecturer, Anderson Graduate 3 Trustee, Presidio
Age: 42 School of Management, University of Funds
California, Los Angeles (since 1995);
President, Amber Capital, Inc. (real
estate investment and financial
planning firm) (since 1993).
26 CAUSEWAY EMERGING MARKETS FUND
TRUSTEES AND OFFICERS INFORMATION (Unaudited)
(CONTINUED)
TERM OF NUMBER OF
OFFICE PORTFOLIOS
AND PRINCIPAL IN TRUST
NAME POSITION(S) LENGTH OF OCCUPATION(S) COMPLEX OTHER
ADDRESS, HELD WITH THE TIME DURING PAST OVERSEEN BY DIRECTORSHIPS HELD
AGE(1) COMPANY SERVED(2) FIVE YEARS BOARD MEMBER(3) BY BOARD MEMBER(4)
- -------------------- -------------- ------------ ------------------------------------- --------------- ----------------------
OFFICERS --
Turner Swan President and Since 8/01 General Counsel and Member of the N/A N/A
11111 Santa Secretary Adviser (since 2001).
Monica Blvd.,
Suite 1500,
Los Angeles, CA
90025
Age: 46
Gracie V. Fermelia Chief CCO (since Chief Compliance Officer of the N/A N/A
11111 Santa Compliance 7/05); Asst. Adviser (since July 2005); Chief
Monica Blvd., Officer and Sect. (since Operating Officer and Member of the
Suite 1500, Assistant 8/01) Adviser (since 2001).
Los Angeles, CA Secretary
90025
Age: 47
Michael Lawson(6) Treasurer Since 7/05 Director of the Administrator's Fund N/A N/A
One Freedom Accounting department (since July
Valley Drive 2005); Manager in the Administrator's
Oaks, PA 19456 Fund Accounting department (November
Age: 47 1998 to July 2005).
Joseph M. Gallo(6) Vice President Since 7/08 Corporate Counsel, of the N/A N/A
One Freedom and Assistant Administrator (since 2007); Associate
Valley Drive Secretary Counsel, ICMA Retirement Corporation
Oaks, PA 19456 (2004-2007); Federal Investigator,
Age: 35 U.S. Department of Labor (2002-2004);
U.S. Securities and Exchange
Commission--Division of of Investment
Management (2003).
Carolyn F. Mead(6) Vice President Since 7/08 Corporate Counsel, of the N/A N/A
One Freedom and Assistant Administrator (since 2007);Associate
Valley Drive Secretary Counsel, Stradley, Ronan, Stevens &
Oaks, PA 19456 Young LLP (2004-2007); Counsel, ING
Age: 52 Variable Annuities (1999-2002).
CAUSEWAY EMERGING MARKETS FUND 27
TRUSTEES AND OFFICERS INFORMATION (Unaudited)
(CONCLUDED)
TERM OF NUMBER OF
OFFICE PORTFOLIOS
AND PRINCIPAL IN TRUST
NAME POSITION(S) LENGTH OF OCCUPATION(S) COMPLEX OTHER
ADDRESS, HELD WITH THE TIME DURING PAST OVERSEEN BY DIRECTORSHIPS HELD
AGE(1) COMPANY SERVED(2) FIVE YEARS BOARD MEMBER(3) BY BOARD MEMBER(4)
- -------------------- -------------- ------------ ------------------------------------- --------------- ------------------
Bernadette Sparling(6) Vice President Since 7/08 Corporate Counsel, of the N/A N/A
One Freedom and Assistant Administrator (since 2005); Associate
Valley Drive Secretary Counsel, Blank Rome LLP (2001-2005).
Oaks, PA 19456
Age: 31
- ----------
(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 holds office during the lifetime of the Trust or until his or
her sooner resignation, retirement, removal, death or incapacity in
accordance with the Trust's Declaration of Trust. The president, treasurer
and secretary each holds office at the pleasure of the Board of Trustees or
until he or she sooner resigns in accordance with the Trust's Bylaws.
(3) The "Trust Complex" consists of all registered investment companies for
which Causeway Capital Management LLC serves as investment adviser. As of
September 30, 2008, the Trust Complex consisted of one investment company
with three portfolios -- the International Value Fund, the Emerging Markets
Fund, and the Global Value Fund.
(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) On October 10, 2008, the Trust held a Special Meeting of Shareholders to
consider a proposal to elect three additional trustees to the Trust's Board
of Trustees. The three nominees, Lawry J. Meister, John R. Graham and Mark
D. Cone, were elected to the Board by a plurality of votes of shareholders
of the entire Trust. As a result of the vote, the Trust's Board is
currently comprised of five trustees. Messrs. Gavin, Sussman and Graham and
Ms. Meister are considered independent trustees within the meaning of the
1940 Act. Mr. Cone is considered an interested trustee because he is an
officer of the Adviser.
(6) These officers of the Trust also serve as officers of one or more mutual
funds for which SEI Investments Company or its affiliates act as investment
manager, administrator or distributor.
28 CAUSEWAY EMERGING MARKETS FUND
DISCLOSURE OF FUND EXPENSES (Unaudited)
As a shareholder of the Fund, you incur two types of costs: (1) transaction
costs, including redemption fees, and (2) ongoing costs, including management
fees, shareholder service fees, and other Fund expenses. It is important for you
to understand the impact of these costs on your investment returns.
Ongoing operating expenses are deducted from a mutual fund's gross income and
directly reduce its final investment return. These expenses are expressed as a
percentage of a mutual fund's average net assets; this percentage is known as a
mutual fund's expense ratio.
The following examples use the expense ratio and are intended to help you
understand the ongoing costs (in dollars) of investing in the Fund and to
compare these costs with those of other mutual funds. The examples are based on
an investment of $1,000 made at the beginning of the period shown and held for
the entire period.
The table on the next page illustrates the Fund's costs in two ways:
ACTUAL FUND RETURN. This section helps you to estimate the actual expenses after
fee waivers that the Fund incurred over the period. The "Expenses Paid During
Period" column shows the actual dollar expense cost incurred by a $1,000
investment in the Fund, and the "Ending Account Value" number is derived from
deducting that expense cost from the Fund's gross investment return.
You can use this information, together with the actual amount you invested in
the Fund, to estimate the expenses you paid over that period. Simply divide your
actual account value by $1,000 to arrive at a ratio (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply that ratio by the number
shown under "Expenses Paid During Period."
HYPOTHETICAL 5% RETURN. This section helps you compare the Fund's costs with
those of other mutual funds. It assumes that the Fund had an annual 5% return
before expenses during the year, but that the expense ratio (Column 3) for the
period is unchanged. This example is useful in making comparisons because the
Securities and Exchange Commission requires all mutual funds to make this 5%
calculation. You can assess the Fund's comparative cost by comparing the
hypothetical result for the Fund in the "Expenses Paid During Period" column
with those that appear in the same charts in the shareholder reports for other
mutual funds.
NOTE: Because the return is set at 5% for comparison purposes -- NOT the Fund's
actual return -- the account values shown may not apply to your specific
investment.
CAUSEWAY EMERGING MARKETS FUND 29
DISCLOSURE OF FUND EXPENSES (Unaudited)
(CONCLUDED)
BEGINNING ENDING EXPENSES
ACCOUNT ACCOUNT ANNUALIZED PAID
VALUE VALUE EXPENSE DURING
4/1/08 9/30/08 RATIOS PERIOD*
--------- --------- ---------- --------
CAUSEWAY EMERGING MARKETS FUND
ACTUAL FUND RETURN
Institutional Class $1,000.00 $ 690.40 1.35% $5.71
HYPOTHETICAL 5% RETURN
Institutional Class $1,000.00 $1,018.25 1.35% $6.81
CAUSEWAY EMERGING MARKETS FUND
ACTUAL FUND RETURN
Investor Class $1,000.00 $ 689.40 1.60% $6.67
HYPOTHETICAL 5% RETURN
Investor Class $1,000.00 $1,017.10 1.60% $7.97
* EXPENSES ARE EQUAL TO THE FUND'S ANNUALIZED EXPENSE RATIO MULTIPLIED BY THE
AVERAGE ACCOUNT VALUE OVER THE PERIOD, MULTIPLIED BY 183/366 (TO REFLECT
THE ONE-HALF YEAR PERIOD).
30 CAUSEWAY EMERGING MARKETS FUND
STATEMENT REGARDING BASIS FOR APPROVAL OF INVESTMENT ADVISORY AGREEMENT
(unaudited)
Under Section 15(c) of the Investment Company Act of 1940, as amended (the "1940
Act"), the Board is required annually to approve continuance of the investment
advisory agreement (the "Advisory Agreement") between Causeway Capital
Management Trust and Causeway Capital Management LLC (the "Adviser") with
respect to Causeway Emerging Markets Fund (the "Fund"). Continuance of the
Advisory Agreement must be approved by a majority of the Trustees and a majority
of the independent Trustees (i.e., Trustees who are not "interested persons" of
the Trust as defined in the 1940 Act). The Board was comprised entirely of
independent Trustees when the continuation of the Advisory Agreement was
considered.
INFORMATION RECEIVED. At each regular quarterly meeting, the Board reviews a
wide variety of materials relating to the nature, extent and quality of the
Adviser's services, including information concerning the Fund's performance. At
least annually, the Board is provided with additional quantitative and
qualitative information to assist it in evaluating whether to approve the
continuance of the Advisory Agreement. The Board met on July 31, 2008, to
consider whether to approve the continuance of the Advisory Agreement for an
additional one-year period. In connection with the meeting, the Trustees
received and reviewed extensive materials prepared by the Adviser relating to
the Advisory Agreement in response to information requested on the Trustees'
behalf by their independent legal counsel.
FACTORS CONSIDERED. In reviewing the Advisory Agreement, the Trustees considered
a number of factors including, but not limited to: (1) the nature, extent and
quality of the services to be provided by the Adviser, (2) the investment
performance of the Fund and the Adviser, (3) comparisons of the services to be
rendered and the amounts to be paid under the Advisory Agreement with those of
other funds and those of the Adviser under other investment advisory agreements
with other registered investment companies and other types of clients, (4) the
costs of the services to be provided and estimated profits to be realized by the
Adviser and its affiliates from their relationship with the Fund, (5) the extent
to which economies of scale would be realized as the Fund grows and whether fee
levels reflect these economies of scale for the benefit of Fund investors, and
(6) any other benefits derived by the Adviser from its relationship with the
Fund.
First, regarding the nature, extent and quality of the services to be provided
by the Adviser, the Trustees considered, among other things, the Adviser's
personnel, experience, track record and compliance program. The Trustees
considered the qualifications, backgrounds and responsibilities of the Adviser's
principal personnel who provide services to the Fund, as well as the level of
attention those individuals provide to the Fund. The Trustees noted the
Adviser's commitment to devoting resources to staffing and technology in support
of its investment management services. They also reviewed the Adviser's
investment philosophy and processes and considered the scope of the Adviser's
services. The Trustees concluded that the nature, extent and quality of the
services provided by the Adviser have benefited and will continue to benefit the
Fund and its shareholders.
CAUSEWAY EMERGING MARKETS FUND 31
STATEMENT REGARDING BASIS FOR APPROVAL OF INVESTMENT ADVISORY AGREEMENT
(unaudited) (continued)
Second, regarding the investment performance of the Fund and the Adviser, the
Trustees reviewed the investment results of the Fund's Institutional and
Investor share classes for the quarter-to-date, year-to-date, one-year and since
inception (3/30/07) periods ended June 30, 2008, compared to the MSCI Emerging
Markets Index (the "Index"), the Morningstar U.S. Open End Diversified Emerging
Markets category, and a peer group of twenty-two emerging markets funds
(including the Fund) used by the Board to track performance during the year. The
Trustees noted that the EM Fund's performance had been strong since inception,
except for the year-to-date period. The Trustees concluded that the Adviser's
record in managing the Fund indicates that its continued management will benefit
the Fund and its shareholders.
Third, the Trustees compared the Fund's advisory fee and total expenses with
those of other similar mutual funds. They noted that the Fund's advisory fee and
expense ratios were below the average and median of the funds in the applicable
Morningstar category. The independent Trustees also compared the Fund's advisory
fee with those paid by the Adviser's separate account and group trust clients
and noted that, although these fees were somewhat lower than those paid by the
Fund, depending on the level of assets under management, the differences
appropriately reflected the Adviser's significantly greater responsibilities
with respect to the Fund, which include the provision of many additional
administrative and shareholder services (such as services related to the Fund's
disclosure documents, financial statements, 1940 Act compliance policies and
procedures, preparation of Board and committee materials and meetings, annual
Board reports and certifications, fair valuation, regulatory examinations and
legal and compliance matters, oversight of Fund service providers, negotiation
of Fund intermediary agreements, coordination with Fund intermediaries providing
shareholder recordkeeping services, proxy voting, shareholder communications,
and due diligence for advisers, consultants and institutional investors). The
Trustees concluded that the Fund's advisory fee and expense ratio were
reasonable and appropriate under the circumstances.
Fourth, the Trustees considered the estimated profits or losses realized by the
Adviser from its relationship with the Fund. They reviewed the Adviser's
estimated after-tax profit margin with respect to such services and the
methodology used to generate that estimate, and noted that the cost methodology
presented to the Trustees was reasonable. They noted that, due to the expense
limit agreement, the Adviser experienced significant losses managing the Fund
during the last fiscal year and since inception, and that the Adviser's
sponsorship of the Fund, at least in the Fund's early years, could involve
significant further expenses to the Adviser.
Fifth, regarding economies of scale, the Trustees observed that although the
Fund's advisory fee schedule did not have breakpoints, the Fund's advisory fee
and expense ratios, as limited by the Adviser, were competitive when compared
with industry ranges, and that the Adviser had incurred significant losses in
managing the
32 CAUSEWAY EMERGING MARKETS FUND
STATEMENT REGARDING BASIS FOR APPROVAL OF INVESTMENT ADVISORY AGREEMENT
(unaudited) (concluded)
Fund. The Trustees concluded that under the circumstances the Adviser was
sharing any economies of scale with the Fund appropriately pending the Fund's
future potential asset growth.
Sixth, regarding any other benefits derived by the Adviser from its relationship
with the Fund -- often called "fall-out" benefits -- the Trustees observed that
the Adviser does not earn common "fall-out" benefits such as affiliated custody
fees, affiliated transfer agency fees, affiliated brokerage commissions, profits
from rule 12b-1 fees, "contingent deferred sales commissions" or "float"
benefits on short-term cash. The Trustees concluded that the primary "fall-out"
benefit received by the Adviser was research services provided by brokers used
by the Fund and that this benefit was reasonable in relation to the value of the
services that the Adviser provides to the Fund.
APPROVAL. At the July 31, 2008 meeting, the Trustees discussed the information
and factors noted above and considered the approval of the Advisory Agreement
with representatives of the Adviser and in a private session with independent
counsel at which no representatives of the Adviser were present. In their
deliberations, the Trustees did not identify any particular information or
factor that was determinative or controlling, and the foregoing summary does not
detail all the matters considered. Based on their review, the Trustees
unanimously concluded that the Advisory Agreement is fair and reasonable to the
Fund and its shareholders, the Fund's advisory fees are reasonable and renewal
of the Advisory Agreement was in the best interests of the Fund and its
shareholders, and the Board of Trustees approved the renewal of the Advisory
Agreement for a twelve-month period beginning September 20, 2008.
CAUSEWAY EMERGING MARKETS FUND 33
NOTES
NOTES
INVESTMENT ADVISER:
Causeway Capital Management LLC
11111 Santa Monica Boulevard
Suite 1500
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.
The Fund files its complete schedule of portfolio holdings with the Securities
and Exchange Commission ("Commission") for the first and third quarters of each
fiscal year on Form N-Q within sixty days after the end of the period. The
Fund's Forms N-Q are available on the Commission's website at
http://www.sec.gov, and may be reviewed and copied at the Commission's Public
Reference Room in Washington, DC. Information on the operation of the Public
Reference Room may be obtained by calling 1-800-SEC-0330.
A description of the policies and procedures that the Fund uses to determine how
to vote proxies relating to portfolio securities, as well as information
relating to how the Trust voted proxies relating to portfolio securities during
the most recent 12-month period ended June 30, is available (i) without charge,
upon request, by calling 1-866-947-7000; and (ii) on the Commission's website at
http://www.sec.gov.
CCM-AR-002-0200
CAUSEWAY EMERGING MARKETS 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. During the fiscal year ended September 30, 2008, there were
no changes or waivers to the code of ethics.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
(a)(1) The registrant's board of trustees has determined that the registrant has
at least one audit committee financial expert serving on the audit committee.
(a)(2) 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.
Aggregate fees billed to the registrant for professional services rendered by
the registrant's principal accountant for the fiscal years ended September 30,
2008 and 2007 were as follows:
- ------------------ ----------------- -----------------
2008 2007
- ------- ---------- ----------------- -----------------
(a) Audit $116,700 $82,400
Fees
- ------- ---------- ----------------- -----------------
(b) Audit- None None
Related
Fees
- ------- ---------- ----------------- -----------------
(c) Tax $22,200 $13,500
Fees(1)
- ------- ---------- ----------------- -----------------
(d) All None None
Other
Fees
- ------- ---------- ----------------- -----------------
Note:
(1) Tax fees include amounts related to tax return reviews.
(e)(1) The registrant's audit committee has adopted a charter that requires it
to pre-approve the engagement of auditors to (i) audit the registrant's
financial statements, (ii) provide other audit or non-audit services to the
registrant, or (iii) provide non-audit services to the registrant's investment
adviser if the engagement relates directly to the operations and financial
reporting of the registrant.
(e)(2) No services included in paragraphs (b) through (d) of this Item were
approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01
of Regulation S-X.
(f) Not applicable.
(g) For the fiscal year ended September 30, 2008, the aggregate non-audit
fees billed by the registrant's accountant for services rendered to the
registrant and the registrant's investment adviser were $22,200 and $209,751,
respectively. For the fiscal year ended September 30, 2007, the aggregate
non-audit fees billed by the registrant's accountant for services rendered to
the registrant and the registrant's investment adviser were $13,500 and $53,520,
respectively.
(h) The audit committee considered whether the provision of non-audit
services rendered to the registrant's investment adviser by the registrant's
principal accountant that were not pre-approved pursuant to paragraph (c)(7)(ii)
of Rule 2-01 of Regulation S-X was compatible with maintaining the principal
accountant's independence.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable to open-end management investment companies.
ITEM 6. SCHEDULE OF INVESTMENTS
See Item 1.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable to open-end management investment companies.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable to open-end management investment companies.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
Not applicable to open-end management investment companies.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
(a) The registrant's procedures by which shareholders may recommend nominees to
the registrant's board of trustees are as follows: The board of trustees of the
registrant has a nominating committee comprised of all of the trustees who are
not interested persons of the registrant as defined by ss. 2(a)(19) of the
Investment Company Act of 1940 (the "Independent Trustees"). The purpose of the
nominating committee is to nominate persons to serve as Independent Trustees, as
needed. According to the registrant's bylaws, any shareholder of the registrant
may submit names of individuals to be considered by the nominating committee or
the board of trustees, as applicable, provided, however, (i) that such person
was a shareholder of record at the time of submission of such names and is
entitled to vote at the meeting, and (ii) that the nominating committee or the
board of trustees, as applicable, shall make the final determination of persons
to be nominated. There have been no material changes to these procedures sine
the registrant's last filing on Form N-CSR.
ITEM 11. 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 evaluation, 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 were no changes in the registrant's internal control over financial
reporting that occurred during the registrant's second fiscal quarter of the
period covered by this report that have materially affected, or are reasonably
likely to materially affect, the registrant's internal control over financial
reporting.
ITEMS 12. EXHIBITS.
(a)(1) Code of Ethics attached hereto.
(a)(2) Separate certifications for the principal executive officer and the
principal financial officer of the registrant as required by Rule 30a-2(a) under
the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) are filed herewith.
(b) Officer certifications as required by Rule 30a-2(b) under the Investment
Company Act of 1940 (17 CFR 270.30a-2(b)) 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: December 3, 2008
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: December 3, 2008
By (Signature and Title)* /s/ Michael Lawson
-----------------------------------
Michael Lawson, Treasurer
Date: December 3, 2008
* Print the name and title of each signing officer under his or her signature.