Review for Quarter Ended 3/31/10 Performance Review 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 swooned in response to China’s reversal of its economic stimulus measures, and then were challenged by Europe’s soaring budget deficits. The best performing developed and emerging equity markets this quarter (measured in US dollars) included Thailand, Hungary, Finland, Egypt, Denmark, Columbia, and Japan, 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 All Country World Index ex US this quarter. The Composite’s relative outperformance can be attributed to holdings in the capital goods, energy, insurance, food beverage & tobacco, and consumer durable industry groups, while holdings in the transportation, technology hardware & equipment, materials, telecommunication services, and pharmaceuticals & biotechnology industry groups detracted from relative performance. Two of the largest single contributors to return this quarter were energy services companies, Technip (France) and Aker Solutions (Norway). Additional notable contributors to return included life insurer, Sony Financial Holdings (Japan), automation and robotics manufacturer, Fanuc (Japan), and industrial conglomerate, Siemens (Germany). 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 pharmaceutical giant, Bayer (Germany), power utility, EON (Germany), mail, logistics, & overnight parcel delivery company, Deutsche Post (Germany), and telecommunication services provider, Telefonica (Spain).* *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.