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International Opps actually launched in 2009. And they do report the last five years' of performance in this prospectus. Sometimes fund companies do the dangedest things. In this case the fact that the same team runs both funds might account for the odd filing.
From the link, I did find this concerning International Opportunities Fund:
*“Management Fees” and “Other Expenses” have been restated reflecting the new advisory fee as of October [XX], 2014 and the related change in the Fund’s investment strategy from a fund of funds investing in other Causeway Funds to direct investing in portfolio securities. Accordingly, “Total Annual Fund Operating Expenses” disclosed
3
Table of Contents
above differ from the “Ratio of Expenses to Average Net Assets (Excluding Waivers)” in the financial highlights section of this Prospectus because the financial highlights do not reflect changes to the advisory fee and expense limit agreement effective as of October [XX], 2014.
Ah. Right. It's in the September issue. Short note that Causeway was about to smack its investors with a potentially hefty tax bill because they were going from a fund-of-two-other-Causeway-funds to a direct investor. That means liquidating the portfolio and unlocked any unrealized capital gains on the way to the new structure.
Moving away from the fund of funds concept might be a better strategy. Causeway doesn't have that many funds to start with.
Hmm...I didn't view CIOVX like that. I mean not like a traditional fund of funds. Are we saying I should expect hefty capital gains distributions before year end? Might as well sell before distribution date then and buy back after.
497 1 d804455d497.htm CAUSEWAY CAPITAL MANAGEMENT TRUST Causeway International Opportunities Fund
Institutional Class (CIOIX)
Investor Class (CIOVX)
SUPPLEMENT DATED OCTOBER 16, 2014
TO THE PROSPECTUS DATED OCTOBER 15, 2014
THIS SUPPLEMENT PROVIDES NEW AND ADDITIONAL INFORMATION BEYOND THAT CONTAINED IN THE PROSPECTUS AND SHOULD BE READ IN CONJUNCTION WITH THE PROSPECTUS.
On October 15, 2014, the Causeway International Opportunities Fund (the “Fund”) converted from a “fund of funds” to a Fund making direct investments in securities. Effective as of the date hereof, the seventh paragraph under “Taxes” in the Prospectus is superseded and replaced in its entirety with:
If you buy shares when the Fund has earned or realized, but not yet distributed, ordinary income or net capital gains, you will be “buying a dividend” by paying the full price of the shares and then receiving a portion of the price back in the form of a taxable distribution. You can avoid this situation by waiting to invest until after the record date for the distribution. The Fund expects to pay significantly increased taxable distributions of net short-term capital gain (that is, the excess of short-term capital gains over short-term capital losses) and net capital gain (that is, the excess of net long-term capital gain over net short-term capital loss) in 2014 due to its conversion on October 15, 2014 from a “fund of funds” structure to directly investing in portfolio securities. This is because when it converted, the Fund redeemed shares in underlying Causeway Funds that had appreciated from the time the Fund purchased the shares, causing the Fund to realize capital gain during 2014. Taxable investors receiving the distributions should be prepared to pay taxes on them (at ordinary income rates for the net short-term capital gain and, for non-corporate shareholders, at the 15% and 20% maximum rates mentioned above for the net capital gain). However, if you are investing in the Fund through a tax-advantaged retirement plan or account, or are a tax-exempt investor, there will be no tax consequences to you from those distributions.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.
Comments
David
*“Management Fees” and “Other Expenses” have been restated reflecting the new advisory fee as of October [XX], 2014 and the related change in the Fund’s investment strategy from a fund of funds investing in other Causeway Funds to direct investing in portfolio securities. Accordingly, “Total Annual Fund Operating Expenses” disclosed
3
Table of Contents
above differ from the “Ratio of Expenses to Average Net Assets (Excluding Waivers)” in the financial highlights section of this Prospectus because the financial highlights do not reflect changes to the advisory fee and expense limit agreement effective as of October [XX], 2014.
David
497 1 d804455d497.htm CAUSEWAY CAPITAL MANAGEMENT TRUST
Causeway International Opportunities Fund
Institutional Class (CIOIX)
Investor Class (CIOVX)
SUPPLEMENT DATED OCTOBER 16, 2014
TO THE PROSPECTUS DATED OCTOBER 15, 2014
THIS SUPPLEMENT PROVIDES NEW AND ADDITIONAL INFORMATION BEYOND THAT CONTAINED IN THE PROSPECTUS AND SHOULD BE READ IN CONJUNCTION WITH THE PROSPECTUS.
On October 15, 2014, the Causeway International Opportunities Fund (the “Fund”) converted from a “fund of funds” to a Fund making direct investments in securities. Effective as of the date hereof, the seventh paragraph under “Taxes” in the Prospectus is superseded and replaced in its entirety with:
If you buy shares when the Fund has earned or realized, but not yet distributed, ordinary income or net capital gains, you will be “buying a dividend” by paying the full price of the shares and then receiving a portion of the price back in the form of a taxable distribution. You can avoid this situation by waiting to invest until after the record date for the distribution. The Fund expects to pay significantly increased taxable distributions of net short-term capital gain (that is, the excess of short-term capital gains over short-term capital losses) and net capital gain (that is, the excess of net long-term capital gain over net short-term capital loss) in 2014 due to its conversion on October 15, 2014 from a “fund of funds” structure to directly investing in portfolio securities. This is because when it converted, the Fund redeemed shares in underlying Causeway Funds that had appreciated from the time the Fund purchased the shares, causing the Fund to realize capital gain during 2014. Taxable investors receiving the distributions should be prepared to pay taxes on them (at ordinary income rates for the net short-term capital gain and, for non-corporate shareholders, at the 15% and 20% maximum rates mentioned above for the net capital gain). However, if you are investing in the Fund through a tax-advantaged retirement plan or account, or are a tax-exempt investor, there will be no tax consequences to you from those distributions.
PLEASE RETAIN THIS SUPPLEMENT FOR FUTURE REFERENCE.
CCM-SK-022-0100