Portfolio Attribution

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

Investment Outlook

With the core Consumer Price Index (CPI) above the US Federal Reserve’s two percent target, the path to achieving the central bank’s dual mandate of maximum employment and stable prices appears difficult. The Fed has reduced its target interest rate in recent meetings. Stable to falling US interest rates coupled with US dollar weakness has historically provided a positive backdrop for EM assets. The tariff outlook for EM exports has generally improved, which has also bolstered EM assets. Reciprocal tariff rates in South Korea and Taiwan have been reduced and many goods, notably semiconductors, are excluded from the reciprocal tariffs currently. US tariff negotiations with China are ongoing and the situation is complex – the average effective tariff rate far exceeds the reciprocal tariff rate due to various other tariffs on specific goods. We are overweight Chinese stocks in the Fund due in part to compelling valuation and growth characteristics. Tariff rates levied on India remain elevated, due in part to a punitive tariff for buying Russian oil. We are underweight Indian stocks in the Fund due in part to unfavorable valuation, growth, and price momentum characteristics.

In South Korea, corporate governance continues to improve. The Korean parliament passed an amendment to the Korean Commercial Act, which expands companies’ boards of directors’ fiduciary duties to also consider the interests of minority shareholders. Additionally, multiple bills are being considered that would require or strongly encourage companies to cancel treasury shares, which would benefit minority shareholders. Typically, share buybacks by a company are positive for all shareholders. However, Korean companies have historically used share buybacks as a tool to increase controlling shareholder control by reducing the number of shares owned by minority shareholders. Meanwhile, minority shareholders do not enjoy the typical benefit of a buyback since the purchased shares still exist in the company’s treasury. The proposed amendment would, once again, make share buybacks positive for minority shareholders. We are overweight South Korean stocks in the Fund due in part to favorable valuation, growth, price momentum, and top-down characteristics.

The market commentary expresses the portfolio managers’ views as of the date of this report and should not be relied on as research or investment advice regarding any stock. These views and the Fund holdings and characteristics are subject to change. There is no guarantee that any forecasts made will come to pass. Any securities identified and described in this report 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. Diversification does not protect against market loss. Current and future holdings are subject to risk. The Fund may invest in derivatives, which are often more volatile than other investments and may magnify the Fund's gains or losses. Investing in ETFs is subject to the risks of the underlying funds. International and emerging markets investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from social, economic or political instability in other nations. Emerging markets and smaller companies involve additional risks and higher volatility.