Global Value Fund

Portfolio Attribution

The Causeway Global Value Fund (“Fund”), on a net asset value basis, underperformed the Index during the month, due primarily to stock selection. Fund holdings in the semiconductors & semi equipment, software & services, and pharmaceuticals & biotechnology industry groups detracted from relative performance. Holdings in the capital goods, food beverage & tobacco, and technology hardware & equipment industry groups offset some of the underperformance compared to the Index. The largest detractor was crude oil & natural gas company, BP Plc (United Kingdom). Additional notable detractors included semiconductor company, Renesas Electronics Corp. (Japan), and medical device producer, Zimmer Biomet Holdings, Inc. (United States). The top contributor to return was rolling stock, signaling, and services provider for the rail industry, Alstom SA (France). Other notable contributors included banking & financial services company, Barclays PLC (United Kingdom), and home entertainment products company, Nintendo Co., Ltd. (Japan).

Investment Outlook

The global trade war has introduced significant economic and geopolitical uncertainty. Following the imposition of record-high mutual trade tariffs, the United States and China reached a temporary agreement in May, though trade tensions persist. China is prioritizing economic stability, technological advancement, and domestic consumption to meet its ambitious growth targets. EU fiscal integration is accelerating, with growing urgency to deepen capital markets. Recognizing the need for greater self-reliance, European leaders have committed to military and economic revitalization. Germany, just weeks after its February election, approved substantial defense and infrastructure spending. In contrast, the UK faces stagflation, with the Bank of England cautiously navigating persistent inflation and gilt market volatility amid slowing growth.

De-globalization and tariffs appear likely to reduce global gross domestic product, increase inflationary pressures, and create sector-level dislocations. However, these disruptions can generate mispricing and opportunities for active investors. This period of market dislocation provides an opportunity to add to positions in companies we believe will overcome tariffs and produce attractive multi-year returns. Companies with few competitors and strong pricing power have become especially valuable in this environment.

Causeway’s global and international value portfolios focus on identifying undervalued stocks rather than positioning around macroeconomic trends. Non-US developed markets continue to trade at a significant discount to the US, where indices remain driven by a handful of AI-focused companies. The era of ultra-low interest rates is over, making near-term cash flows more attractive than speculative growth. Certain cyclical stocks now offer some of the lowest valuations since 2020 and are rising in our risk-adjusted return rankings. We also are focusing on companies providing mission-critical products and services, which should see robust order growth regardless of tariff volatility. Across sectors, Causeway targets companies improving efficiency, driving earnings, and boosting cash flow.

International Small Cap Fund

Portfolio Attribution

The Causeway International Small Cap Fund (“Fund”), on a net asset value basis, underperformed the Index during the month. To evaluate stocks in our investable universe, our multi-factor quantitative model employs five bottom-up factor categories –valuation, sentiment, technical indicators, quality, and corporate events – and two top-down factor categories assessing macroeconomic and country aggregate characteristics. Alpha factor performance was mixed in April. Monthly returns to our valuation factors were negative, though value is the second-best performing factor group over the last twelve months. Our sentiment, technical, and quality factors all delivered positive returns in April. Our corporate events factors were the best-performing factor group last month and over the last twelve months. Returns to our macroeconomic factors were negative in April as countries exhibiting more attractive characteristics (such as Taiwan and China) underperformed those with relatively weaker characteristics (such as Brazil). However, our country aggregate factors delivered slightly positive monthly returns. All factor groups remain positive on an inception to date basis.

Investment Outlook

The US is expected to announce substantial tariff increases on imports from nearly all US trading partners in early April. Many countries may retaliate, creating rising barriers to global trade. Generally speaking, small cap stocks should be less impacted than their larger peers due to greater focus on their home market. Constituents of the Index derive, on average, 65% of their revenue from their home market, compared to just 43% for constituents of the ACWI ex US Index.

In China, we are optimistic about the recent consumption-oriented stimulus measures announced in March as well as the vow to “stabilize the stock market.” Market participants remain skeptical about China hitting GDP growth targets, however the clear pivot to stimulus indicates the government’s willingness to do whatever it takes to boost the economy. Although China is just 3% of the Index, recent stimulus measures should be supportive of global economic growth.

International small caps continue to trade at a rare discount to their larger-cap (ACWI ex USA Index) peers on a forward P/E basis. In addition to the attractive relative valuation of the asset class overall, Causeway’s International Small Cap portfolio continues to trade at a substantial discount to the Index while simultaneously exhibiting more favorable growth, quality, momentum, and positive estimate revisions than the Index. We believe that this highly attractive combination of characteristics better insulates our portfolio from future volatility.

International Opportunities Fund

Portfolio Attribution

The Causeway International Opportunities Fund (“Fund”) on a net asset value basis, underperformed the Index during the month. On a gross return basis, Fund holdings in semiconductors & semi equipment, capital goods, and household & personal products industry groups detracted from relative performance. Energy, food beverage & tobacco, and banks contributed to relative performance. The largest individual detractors from absolute returns included crude oil & natural gas company, BP Plc (United Kingdom), semiconductor company, Renesas Electronics Corp. (Japan), and appliance manufacturer, Electrolux (Sweden). The greatest contributors to absolute returns included rolling stock, signaling, and services provider for the rail industry, Alstom SA (France), banking & financial services company, Barclays PLC (United Kingdom), and home entertainment products company, Nintendo Co., Ltd. (Japan).

We use a proprietary quantitative equity allocation model that assists the portfolio managers in determining the weight of emerging versus developed markets in the Fund. Our allocation relative to the weight of emerging markets in the Index is currently neutral. We identify five primary factors as most indicative of the ideal allocation target: valuation, quality, earnings growth, macroeconomic, and risk aversion. Our valuation metric is currently neutral for emerging markets. Earnings growth, risk aversion, and quality, which includes such measures as profit margins and return on equity, are positive for emerging markets. Macroeconomic is a negative indicator.

Investment Outlook

The global trade war has introduced significant economic and geopolitical uncertainty. Following the imposition of record-high mutual trade tariffs, the United States and China reached a temporary agreement in May, though trade tensions persist. China is prioritizing economic stability, technological advancement, and domestic consumption to meet its ambitious growth targets. The fund was overweight Chinese stocks as of quarter-end, with the majority of Chinese exposure in communication services and consumption-oriented businesses, which tend to be more domestically-focused and continue to look attractive on both self-relative valuation and growth characteristics. Recognizing the need for greater self-reliance, European leaders have committed to military and economic revitalization. Additionally, Chinese investment in Europe is likely to continue climbing as China diversifies its trade relationships. In contrast, the UK faces stagflation, with the Bank of England cautiously navigating persistent inflation and gilt market volatility amid slowing growth. In EM, Taiwan and South Korea are two of the most externally-exposed economies. As of quarter-end, we were overweight South Korean stocks in the Fund due in part to bottom-up valuation and top-down considerations.

De-globalization and tariffs appear likely to dampen real growth, increase inflationary pressures, and create sector-level dislocations. However, these disruptions can generate mispricing and opportunities for active investors. Despite the likelihood of a more difficult economic environment ahead, we remain optimistic that we can exploit share price weakness in desirable stocks to upgrade portfolios. This period of market dislocation provides an opportunity to add to positions in companies we believe will overcome tariffs and produce attractive multi-year returns. Companies with few competitors and strong pricing power have become especially valuable in this environment. Within the developed markets portion of the fund, we focus on identifying undervalued stocks rather than positioning around macroeconomic trends. Despite recent gains, non-US developed markets continue to trade at a significant discount to the US, where indices remain driven by a handful of AI-focused companies. The era of ultra-low interest rates is over, making near-term cash flows more attractive than speculative growth. Certain cyclical stocks now offer some of the lowest valuations since 2020 and are rising in our risk-adjusted return rankings. We are also focusing on companies providing mission-critical services to enterprises, which should see robust order growth regardless of tariff changes. As companies invest in digitalization and cloud transitions, IT Services firms are poised for renewed interest. Across sectors, Causeway targets companies improving efficiency, driving earnings, and boosting cash flow growth.

Emerging Markets Fund

Portfolio Attribution

The Causeway Emerging Markets Fund (“Fund”), on a net asset value basis, underperformed the Index in April 2025. We use both bottom-up “stock-specific” and top-down factor categories to seek to forecast alpha for the stocks in the Fund’s investable universe. Our bottom-up valuation factor was a negative indicator in April. Our corporate events, growth, technical (price momentum), and competitive strength factors were positive indicators. Our top-down macroeconomic factor was a negative indicator while currency and country/sector aggregate were positive during the month.

Investment Outlook

The Trump administration’s tariff policies have roiled global markets. Within EM, Taiwan and South Korea are two of the most externally-exposed economies. As of quarter-end, we were overweight South Korean and Taiwanese stocks in the Fund due in part to bottom-up valuation and top-down considerations. In China, the government has refrained from aggressive spending to boost consumption despite continued disinflationary trends. China’s economy is also expected to trade disruption and the Trump administration has been working to quantify non-tariff barriers. The Fund was overweight Chinese stocks as of quarter-end, with the majority of Chinese exposure in communication services and consumption-oriented businesses, which tend to be more domestically-focused and continue to, in our view, look attractive on both self-relative valuation and growth characteristics. In Turkey, equities sold off and the lira fell late in the quarter after police detained the mayor of Istanbul, Ekrem Imamoglu, the primary opposition candidate in the 2028 presidential election. While the development is troubling, we are encouraged by the fact that President Erdogan has not abandoned the central banks hawkish interest rate policy. The Fund was overweight Turkish stocks as of quarter-end due in part to top-down considerations.

International Value Fund

Portfolio Attribution

The Causeway International Value Fund (“Fund”), on a net asset value basis, underperformed the Index during the month, due primarily to stock selection. Fund holdings in the semiconductors & semi equipment, capital goods, and household & personal products industry groups detracted from relative performance. Holdings in the banks and software & services industry groups, as well as an underweight position in the financial services industry group, offset some of the underperformance compared to the Index. The largest detractor was crude oil & natural gas company, BP Plc (United Kingdom). Additional notable detractors included semiconductor company, Renesas Electronics Corp. (Japan), and appliance manufacturer, Electrolux (Sweden). The top contributor to return was rolling stock, signaling, and services provider for the rail industry, Alstom SA (France). Other notable contributors included a banking & financial services company, Barclays PLC (United Kingdom), and home entertainment products company, Nintendo Co., Ltd. (Japan).

Investment Outlook

The global trade war has introduced significant economic and geopolitical uncertainty. During the quarter, the US placed record high punitive tariffs on China. Meanwhile China has reciprocated, making all but essential (or tariff-exempt) trade between the two countries cost-prohibitive. China is prioritizing economic stability, technological advancement, and domestic consumption to meet its ambitious growth targets. EU fiscal integration is accelerating, with growing urgency to deepen capital markets. Recognizing the need for greater self-reliance, European leaders have committed to military and economic revitalization. Germany, just weeks after its February election, approved substantial defense and infrastructure spending. In contrast, the UK faces stagflation, with the Bank of England cautiously navigating persistent inflation and gilt market volatility amid slowing growth.

De-globalization and tariffs appear likely to reduce global gross domestic product, increase inflationary pressures, and create sector-level dislocations. However, these disruptions can generate mispricing and opportunities for active investors. This period of market dislocation provides an opportunity to add to positions in companies we believe will overcome tariffs and produce attractive multi-year returns. Companies with few competitors and strong pricing power have become especially valuable in this environment.

Causeway’s global and international value portfolios focus on identifying undervalued stocks rather than positioning around macroeconomic trends. Non-US developed markets continue to trade at a significant discount to the US, where indices remain driven by a handful of AI-focused companies. The era of ultra-low interest rates is over, making near-term cash flows more attractive than speculative growth. Certain cyclical stocks now offer some of the lowest valuations since 2020 and are rising in our risk-adjusted return rankings. We also are focusing on companies providing mission-critical products and services, which should see robust order growth regardless of tariff volatility. Across sectors, Causeway targets companies improving efficiency, driving earnings, and boosting cash flow.