Global Value Fund

Portfolio Attribution

The Causeway Global Value Fund (“Fund”), on a net asset value basis, outperformed the Index during the month, due primarily to stock selection. On a gross return basis, Fund holdings in the technology hardware & equipment, banks, and household & personal products industry groups contributed to relative performance. Holdings in the semiconductors & semi equipment, materials, and software & services industry groups offset some of the outperformance compared to the Index. The top contributor to return was electronic equipment manufacturer, Samsung Electronics Co., Ltd. (South Korea). Other notable contributors included multinational luxury conglomerate, Kering SA (France), and household & personal care products company, Reckitt Benckiser Group Plc (United Kingdom). The largest detractor was home-appliance manufacturer, Whirlpool Corporation (United States). Additional notable detractors included paints & coatings producer, Akzo Nobel (Netherlands), and private-sector bank, AXIS Capital Holdings Ltd. (United States).

Investment Outlook

In Europe, we anticipate substantial economic benefits to begin materializing in 2026, as both the public and private sectors intensify investments in defense, security, energy, and infrastructure. The region’s initiatives to harmonize regulations and establish a unified, liquid capital market have the potential to significantly accelerate innovation and drive sustained economic growth. Moreover, the trade-weighted US dollar has reversed its late-2024 gains, reverting to levels last observed in early 2022. This depreciation may deliver further currency-related support to non-US markets, especially if real interest rates and economic growth outside the US remain steady or strengthen. If European leaders implement the competitiveness reforms proposed by Mario Draghi last year, our existing two-year price targets could prove conservative, particularly for portfolio holdings most sensitive to European economic growth. We continue to take a disciplined approach, favoring investments at current valuations rather than paying a premium for potential future positive developments.

Causeway’s global and international value portfolios focus on identifying undervalued stocks rather than positioning around macroeconomic trends. Given the valuation gap between US and non-US markets, we are aiming to find some of the most compelling investment opportunities across international markets. Our focus remains on identifying companies that offer durable value, characterized by pricing power, iconic brands, or robust product pipelines. Even the highest quality businesses can encounter temporary dislocations, which we view as opportunities to increase positions at attractive valuations. Recent external shocks have created such opportunities among select-high quality companies. The pharmaceutical industry faces a considerable list of challenges including US pricing, global trade restrictions, China’s economic slowdown, and uncertainties in drug pipelines. These challenges have created, in our view, value opportunities in some of the world’s top pharmaceutical firms where we remain confident in their ability to sustain cash flow, profit margins, and innovation over time. Across sectors, Causeway targets companies we believe are improving efficiency, driving earnings, and boosting cash flows.

International Small Cap Fund

Portfolio Attribution

The Causeway International Small Cap Fund (“Fund”) underperformed the Index during the month. To evaluate stocks in our investible 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 July. Among our bottom-up factor groups, monthly returns were led by our technical and sentiment factors, and technical is the best-performing factor group over the last twelve months. Our quality and valuation factor groups posted negative returns in July, while corporate events was mostly flat. Returns to our macroeconomic and country aggregate factors were positive in July as countries exhibiting more attractive characteristics (such as China) outperformed those with relatively weaker characteristics (such as Brazil and India). All factor groups remain positive on a year-to-date, last-twelve-months, and inception-to-date basis.

Investment Outlook

Despite tariff tensions recently cooling with the market expecting additional U.S. tariff deals to be announced in the near future, the potential remains for growing 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 South Korea, Democratic Party nominee Lee Jae Myung won the June presidential election. In addition to removing a source of uncertainty, the election ushered in a significant set of legislative proposals that are minority shareholder friendly. The most notable of these is the proposed amendment to the Korea Commercial Act, which expands companies’ boards of directors’ fiduciary duties to also consider the interests of minority shareholders. Other shareholder friendly proposals include the separate taxation of dividends which should increase Korean companies’ anemic dividend yields, an inheritance tax amendment, the mandatory cancellation of treasury shares, and a discovery system which would give shareholders access to internal company documents. At the end of Q2, Korea was the Fund’s largest country overweight due in part to attractive valuations and favorable top-down characteristics.

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, outperformed the Index during the month. On a gross return basis, Fund holdings in the consumer durables & apparel, banks, and household & personal products industry groups contributed to relative performance. Holdings in financial services, transportation, and consumer discretionary distribution & retail detracted from relative performance. The greatest contributors to absolute returns included multinational luxury conglomerate, Kering SA (France), household & personal care products company, Reckitt Benckiser Group Plc (United Kingdom), and online services company, Tencent Holdings Ltd. (China). The largest detractors from absolute returns included global healthcare company, Novo Nordisk A/S (Denmark), paints & coatings producer, Akzo Nobel (Netherlands), and beverage company, Anheuser-Busch InBev SA/NV (Belgium).

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 overweight. We identify five primary factors as most indicative of the ideal allocation target: valuation, quality, earnings growth, macroeconomic, and risk aversion. Our growth and macroeconomic metrics are currently positive for emerging markets. Our quality metric, which includes such measures as profit margins and return on equity, and our valuation metric are neutral. Our risk aversion metric is currently a negative indicator.

Investment Outlook

In emerging markets, South Korea’s Democratic Party nominee Lee Jae Myung won the June presidential election. In addition to removing a source of uncertainty, the election ushered in a significant set of legislative proposals that appear to be minority shareholder friendly. The most notable one is the proposed amendment to the Korea Commercial Act, which expands companies’ board of directors’ fiduciary duties to also consider the interests of minority shareholders. The Fund is overweight South Korean stocks due in part to attractive valuations and favorable top-down characteristics. In China, data continues to reflect disinflationary trends and gross domestic product (“GDP”) growth is expected to slow into the low four percent range. Chinese authorities appear likely to refrain from aggressive spending to boost consumption. The Fund is overweight Chinese stocks due in part to attractive valuations, but we have trimmed our consumer holdings as lackluster consumer demand is weighing on earnings growth expectations.

In Europe, we anticipate substantial economic benefits to begin materializing in 2026, as both the public and private sectors intensify investments in defense, security, energy, and infrastructure. The region’s initiatives to harmonize regulations and establish a unified, liquid capital market have the potential to significantly accelerate innovation and drive sustained economic growth. Moreover, the trade-weighted US dollar has reversed its late-2024 gains, reverting to levels last observed in early 2022. This depreciation may deliver further currency-related support to non-US markets, especially if real interest rates and economic growth outside the US remain steady or strengthen. Given the valuation gap between US and non-US markets, we are aiming to find some of the most compelling investment opportunities across international markets. In the developed markets portion of the portfolio, our focus remains on companies offering durable value, characterized by duopoly pricing power, iconic brands, or robust product pipelines. We continue to take a disciplined approach, preferring investments at current valuations rather than paying a premium for potential future positive developments. Across sectors, Causeway targets companies improving efficiency, driving earnings, and boosting cash flows.

Emerging Markets Fund

Portfolio Attribution

The Causeway Emerging Markets Fund (“Fund”), on a net asset value basis, underperformed the Index in July 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 technical (price momentum), corporate events, and competitive strength factors were negative indicators in July. Valuation and growth factors were positive indicators during the month. Our top-down macroeconomic factor was a negative indicator while currency and country/sector aggregate were positive indicators in July.

Investment Outlook

The US Federal Reserve was on hold in the second quarter and Chairman Powell has been reluctant to cut interest rates as he is wary of the inflationary effects of tariffs. Meanwhile, most EM currencies rallied relative to the US dollar during the quarter. Even though real rates are positive in the US, many investors are questioning the sustainability of massive US deficits and debt. A backdrop of stable to falling rates in the US coupled with US dollar weakness is typically a positive environment for EM assets. With the Trump Administration announcing escalating tariffs, particularly with China, EM trade with the US was materially diminished earlier this year. However, the tariff tensions appear to have cooled. This would be a positive development for export-oriented EM countries like China, South Korea, and Taiwan.

In South Korea, Democratic Party nominee Lee Jae Myung won the June presidential election. In addition to removing a source of uncertainty, the election ushered in a significant set of legislative proposals that appear to be minority shareholder friendly. The most notable one is the proposed amendment to the Korea Commercial Act, which expands companies’ boards of directors’ fiduciary duties to also consider the interests of minority shareholders. Other shareholder friendly proposals include the separate taxation of dividends which should increase Korean companies’ anemic dividend yields, an inheritance tax amendment, the mandatory cancellation of treasury shares, and a discovery system which would give shareholders access to internal company documents. The Fund is overweight South Korean stocks due in part to attractive valuations and favorable top-down characteristics. In China, data continues to reflect disinflationary trends and gross domestic product (“GDP”) growth is expected to slow into the low four percent range. Chinese authorities appear likely to refrain from aggressive spending to boost consumption. The Fund is overweight Chinese stocks due in part to attractive valuations, but we have trimmed our consumer holdings as lackluster consumer demand is weighing on earnings growth expectations.

International Value Fund

Portfolio Attribution

The Causeway International Value Fund (“Fund”), on a net asset value basis, outperformed the Index during the month, due primarily to stock selection. On a gross return basis, Fund holdings in the technology hardware & equipment, consumer durables & apparel, and banks industry groups contributed to relative performance. Holdings in the transportation, software & services, and equity real estate investment trusts (REITS) industry groups offset some of the outperformance compared to the Index. The top contributor to return was electronic equipment manufacturer, Samsung Electronics Co., Ltd. (South Korea). Other notable contributors included multinational luxury conglomerate, Kering SA (France), and household & personal care products company, Reckitt Benckiser Group Plc (United Kingdom). The largest detractor was global healthcare company, Novo Nordisk A/S (Denmark). Additional notable detractors included paints & coatings producer, Akzo Nobel (Netherlands), and beverage company, Anheuser-Busch InBev SA/NV (Belgium).

Investment Outlook

In Europe, we anticipate substantial economic benefits to begin materializing in 2026, as both the public and private sectors intensify investments in defense, security, energy, and infrastructure. The region’s initiatives to harmonize regulations and establish a unified, liquid capital market have the potential to significantly accelerate innovation and drive sustained economic growth. Moreover, the trade-weighted US dollar has reversed its late-2024 gains, reverting to levels last observed in early 2022. This depreciation may deliver further currency-related support to non-US markets, especially if real interest rates and economic growth outside the US remain steady or strengthen. If European leaders implement the competitiveness reforms proposed by Mario Draghi last year, our existing two-year price targets could prove conservative, particularly for portfolio holdings most sensitive to European economic growth. We continue to take a disciplined approach, favoring investments at current valuations rather than paying a premium for potential future positive developments.

Causeway’s global and international value portfolios focus on identifying undervalued stocks rather than positioning around macroeconomic trends. Given the valuation gap between US and non-US markets, we are aiming to find some of the most compelling investment opportunities across international markets. Our focus remains on identifying companies that offer durable value, characterized by pricing power, iconic brands, or robust product pipelines. Even the highest quality businesses can encounter temporary dislocations, which we view as opportunities to increase positions at attractive valuations. Recent external shocks have created such opportunities among select-high quality companies. The pharmaceutical industry faces a considerable list of challenges including US pricing, global trade restrictions, China’s economic slowdown, and uncertainties in drug pipelines. These challenges have created, in our view, value opportunities in some of the world’s top pharmaceutical firms where we remain confident in their ability to sustain cash flow, profit margins, and innovation over time. Across sectors, Causeway targets companies we believe are improving efficiency, driving earnings, and boosting cash flows.