PERFORMANCE REVIEW for the month ended 31 May 2017

Global developed and emerging markets equities continued their ascent in May, buoyed by demand for growth stocks and by evidence of a recovery in European economies and supportive monetary conditions. The top performing markets in our investable universe included Greece, Hungary, Portugal, Austria, and South Korea. The worst performing markets included Russia, Brazil, Australia, Qatar, and Israel. The best performing sectors in the MSCI ACWI ex US Index (“Index”) were utilities, consumer staples, and telecommunication services. The worst performing sectors were materials, energy, and financials. Every major currency except the Australian dollar and British pound appreciated versus the US dollar during the period, thus amplifying overall returns on overseas assets for US dollar-based investors.

Causeway International Opportunities Fund (“Fund”) underperformed the Index during the month, due primarily to stock selection. Fund holdings in the capital goods, food beverage & tobacco, materials, and transportation industry groups, along with an underweight position in the household & personal products industry group, detracted from relative performance. Holdings in the banks, pharmaceuticals & biotechnology, technology hardware & equipment, and telecommunication services industry groups, as well as an overweight position in the utilities industry group, offset some of the underperformance versus the Index. The largest detractor was oil & natural gas producer, Encana (Canada). Additional detractors included construction & mining equipment manufacturer, Komatsu Ltd. (Japan), automobile manufacturer, Volkswagen AG (Germany), Japan Airlines Co., Ltd. (Japan), and paints & coatings producer, Akzo Nobel NV (Netherlands). The top contributor to performance was multinational electric utility company, ENGIE SA (France). Other notable contributors included telecommunication services provider, Vodafone Group (United Kingdom), pharmaceutical company, AstraZeneca Plc (United Kingdom), energy supermajor, Royal Dutch Shell Plc (United Kingdom), and banking & financial services company, UniCredit S.p.A. (Italy).

Equity Allocation Model Update

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 underweight. We identify five primary factors as most indicative of the ideal allocation target: valuation, financial strength, earnings growth, macroeconomic, and risk aversion. Valuation is currently positive for emerging markets in our model, along with our financial strength metrics, which include such measures as interest coverage and return on equity. Our earnings growth factor is negative for emerging markets over the period. Our macroeconomic factor is negative on emerging markets. Lastly, our risk aversion factor concludes that investors’ appetite for risk is high, a negative indicator for our model.

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.