PERFORMANCE REVIEW for the month ended 31 Mar 2019

Causeway Global Absolute Return Fund (“Fund”) underperformed the ICE BofAML US 3-Month Treasury Bill Index in the month of March. The Fund’s underperformance was driven by the long portfolio: the Fund’s long portfolio underperformed the MSCI World Index (“World Index”). The Fund’s short portfolio contributed positively to overall performance by underperforming the World Index, though by a smaller margin than the long portfolio.

Increasingly dovish rhetoric from the US Federal Reserve (“Fed”) and the European Central Bank (“ECB”) and progress on US-China trade negotiations supported equity markets in March. The top performing markets in our investable universe were New Zealand, Denmark, Belgium, Switzerland, and China. The worst performing markets were South Korea, Austria, Norway, Spain, and Germany. The best performing sectors in the World Index were real estate, consumer staples, and information technology. The worst performing sectors were financials, industrials, and health care.

The Fund takes long and short notional exposures to securities under swap agreements. We use a combination of fundamental and quantitative inputs to select exposures for the long portfolio of the Fund, while we use primarily quantitative inputs to select exposures for the short portfolio. Our fundamental inputs reflect the risk-adjusted total return potential of stocks favored by our fundamental research team. Our quantitative inputs include signals that seek long (short) positions in stocks which we believe are undervalued (overvalued) and have improving (deteriorating) earnings growth dynamics, positive (negative) technical price movements, and superior (inferior) quality of earnings. During the month of March, our growth and technical factor categories demonstrated predictive power. Stocks with improving earnings growth dynamics outperformed those with worsening dynamics, and stocks with positive technical indicators outperformed those with negative technical indicators. However, returns to value were negative as stocks with cheap valuations underperformed those with expensive valuations, contrary to expectations. Stocks demonstrating higher earnings quality performed in line with those having lower earnings quality.

Within the long portfolio, attribution effects were weakest in the technology hardware & equipment, materials, and banks industry groups. Long-side attribution effects were strongest in the capital goods, automobiles & components, and pharmaceuticals & biotechnology industry groups. Long exposures that detracted most from the Fund’s performance were optical fiber manufacturer, Yangtze Optical Fibre & Cable Joint Stock (China), furniture manufacturer, Steelcase, Inc. (United Inc.States), mortgage insurance provider, Genworth MI Canada (Canada), passenger & cargo airline, Alaska Air Group, Inc. (United States), and telecommunication services provider, KDDI Corp. (Japan). Long exposures that contributed most to performance were heavy truck manufacturer, Sinotruk Hong Kong Ltd. (China), beverage producer, Coca-Cola Amati Ltd. (Australia), pharmaceutical & consumer healthcare products producer, Novartis AG (Switzerland), diversified mining company, BHP Group Plc (United Kingdom), and business software & services provider, SAP SE (Germany).

Within the short portfolio, attribution effects were strongest in the software & services, semiconductors & semi equipment, and capital goods industry groups. Short-side attribution effects were weakest in the telecommunication services, health care equipment & services, and retailing industry groups. Short exposures that contributed most to performance were sensor producer, ams AG (Germany), shipbuilder, Samsung Heavy Industries Co., Ltd. (South Korea), healthcare housekeeping & food services provider, Healthcare Services Group, Inc. (United States), green energy supplier, GCL-Poly Energy Holdings Ltd. (China), and insurance provider, Beazley Plc (United Kingdom). Short exposures that detracted most from the Fund’s performance included online car dealer, Carvana Co. (United States), wireless telecommunications operator, Cellnex Telecom SA (Spain), chemicals manufacturer, Hitachi Chemical Co., Ltd. (Japan), dental equipment maker, Dentsply Sirona, Inc. (United States), and technology & camera company, Snap, Inc. (United States).

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.