PERFORMANCE REVIEW for the month ended 31 Oct 2018

Amid continuing trade tensions between the United States and China, emerging market equities posted negative returns in October. The MSCI Emerging Markets Index (“Index”) returned -7.77% in local currency terms during the month. Emerging Asia was the poorest performing region group in local currency terms as Chinese, South Korean, and Taiwanese equities underperformed. The emerging Europe, Middle East, and Africa (“EMEA”) region also delivered negative returns. Buoyed by strong Brazilian equity returns, emerging Latin America was the top performing region group within the Index in local currency terms. Information technology, health care, and consumer discretionary were the weakest sectors within the Index during the month. Utilities, financials, and telecommunication services were the top performing sectors in local currency terms.

Causeway Emerging Markets Fund (“Fund”) modestly underperformed the Index in October 2018. We use both bottom-up and top-down factor categories to forecast alpha (return in excess of the Index) for the stocks in the Fund’s investable universe. Our bottom-up value factor category was a strong indicator in October and the factor has delivered positive returns for the year-to-date period. The earnings growth factor category was also a positive indicator during the month and it has been the strongest factor over most recent trailing periods. The price momentum factor category, as measured by our technical factors, was negative in October. Of our top-down factors, the sector factor was a positive indicator of performance while the macroeconomic, country, and currency factors were negative.

Over the month, Fund positioning in emerging Latin America detracted from relative performance versus the Index, primarily driven by negative stock selection in Brazil. Holdings in the EMEA region added to relative performance, attributable in part to positive stock selection in South Africa. Within emerging Asia, positive stock selection in South Korea and India was partially offset by negative stock selection in China and Taiwan. From a sector perspective, the largest detractors from relative performance were energy, real estate, and financials. Positioning in the health care, consumer staples, and information technology sectors contributed to relative performance. The largest stock-level detractors from relative performance were underweight positions in oil & gas exploration company, Petroleo Brasileiro SA (Brazil), and bank, Banco Bradesco SA (Brazil), as well as an overweight position in oil & gas exploration & production company, China Petroleum & Chemical Corp. (China). The greatest stock level contributors to relative performance were overweight positions in financial & industrial holdings company, Investimentos Itau (Brazil), and bank, Banco do Brasil SA (Brazil), and an underweight position in electronic & print media platform operator, Naspers Ltd. (South Africa).

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.