Performance Review for Quarter Ended 3/31/10 Global equity markets extended the recovery and positive streak in the first quarter. February more than wiped out January’s gains, but equity markets rebounded in March. Markets initially sold off on the back of China’s reversal of its economic stimulus measures, and then were challenged by Europe’s soaring budget deficits. The best performing developed equity markets this quarter (measured in US dollars) included Finland, Denmark, Japan, Sweden, and Canada, while the biggest laggards included Europe’s so-called “PIGS”—Portugal, Italy, Greece, and Spain. The US dollar appreciated meaningfully versus the pound sterling and the euro this period, thus depressing dollar-denominated returns in those regions. Due to superior stock selection, the Composite outperformed the MSCI EAFE® Index this quarter. The Composite’s relative outperformance can be attributed to holdings in the capital goods, energy, insurance, banks, and consumer durables industry groups, while holdings in the transportation, materials, technology hardware & equipment, materials, telecommunication services, and pharmaceuticals & biotechnology industry groups detracted from relative performance. The largest single contributor to return this quarter was the machinery and ship manufacturer, Hyundai Heavy (South Korea). Investors reacted positively to indications that order levels bottomed in 2009, and the Company’s announcement of a significant cost-cutting plan. Additional notable contributors to return included two energy services companies, Technip (France) and Aker Solutions (Norway), life insurer, Sony Financial Holdings (Japan), and automation and robotics manufacturer, Fanuc (Japan). The largest individual detractor from performance this period was paints & industrial coatings manufacturer, Akzo Nobel (the Netherlands). The Company announced disappointing earnings for the fourth quarter of 2009 (4Q09), but we continue to hold shares in this undervalued, well-managed market leader. Additional notable detractors included power utility, EON (Germany), mail, logistics, & overnight parcel delivery company, TNT (the Netherlands), telecommunication services provider, Telefonica (Spain), and global bank, HSBC (UK).* *The securities identified and described above do not represent all of the securities purchased, sold or recommended for client accounts. The reader should not assume that an investment in the securities identified was or will be profitable. Past performance does not guarantee future results. For a description of our performance attribution methodology, or to obtain a list showing every holding’s contribution to the overall account’s performance during the quarter, please contact our product manager, Kevin Moutes, at 310-231-6116 or moutes@causewaycap.com.