The Causeway International Opportunities strategy is a combination of our International Value (bottom-up, fundamental, developed-markets) and our Emerging Markets (quantitatively managed with a targeted tracking error of 5%). Our quantitative team has developed a proprietary model that tactically allocates the percentages between the developed markets and the emerging markets. We anticipate our developed markets exposure will add value through the bottom-up selection of undervalued stocks as well as the compounding of dividend returns. We anticipate our emerging markets exposure will add value through the use of our proprietary quantitative models that are a combination of bottom-up and top-down factors. Finally, our quantitative allocation model is designed to tactically allocate (within specified ranges) between emerging markets and developed markets based on their relative attractiveness. "Our developed markets security selection starts with a universe of 1,500 stocks with market capitalizations greater than $750 million. We apply value oriented screens (Payout Yield, Earnings Yield) to reduce this list to about 400 stocks. Our fundamental analysts then build detailed models using fundamental analysis on about 150 companies. The goal of the fundamental research process is a 2-year price target. Stocks are then ranked based on their expected risk-adjusted return. This ranking is used as the roadmap to portfolio construction through the use of a model portfolio. As described earlier, our emerging markets strategy utilizes proprietary models that analyze a variety of fundamental, technical and macroeconomic factors to "score†a stock's prospective return forecast. Roughly 2/3rds of the factors in the model are bottom-up, while the other 1/3 are top-down factors. The emerging market portion the strategy is constructed using a proprietary optimizer.