PERFORMANCE REVIEW for the month ended 31 Oct 2018

Equity markets fluctuated in November as geopolitical events influenced market movements. Emerging markets (“EM”) equities rebounded this month, outperforming developed market peers. The top performing markets in our investable universe included Turkey, Indonesia, India, Hungary, and South Africa. The worst performing markets included Ireland, Pakistan, the United Arab Emirates, Norway, and Finland. The best performing sectors in the MSCI ACWI ex US Index (“Index”) were generally economically-defensive or trade tariff immune sectors, led by real estate, telecommunication services, and utilities. The worst performing sectors were energy, materials, and consumer discretionary.

Causeway International Opportunities Fund (“Fund”) underperformed the Index during the month, due primarily to stock selection. Fund holdings in the food beverage & tobacco, energy, banks, insurance, and utilities industry groups detracted from relative performance. Holdings in the software & services, consumer services, consumer durables & apparel, and retailing industry groups, as well as an overweight position in the transportation industry group, offset some of the underperformance. The largest detractor was British American Tobacco Plc (United Kingdom). Additional notable detractors included oil & natural gas producer, Encana (Canada), Takeda Pharmaceutical Co., Ltd. (Japan), luxury goods manufacturer & retailer, Compagnie Financiere Richemont (Switzerland), and crude oil & natural gas company, BP Plc (United Kingdom). The top contributor to return was telecommunication services provider, Vodafone Group (United Kingdom). Other notable contributors included enterprise infrastructure software company, Micro Focus International Plc (United Kingdom), online services company, Tencent Holdings Ltd. (China), apparel manufacturer, Gildan Activewear (Canada), and global life insurer, Manulife Financial (Canada).

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, quality, earnings growth, macroeconomic, and risk aversion. Valuation is currently positive for emerging markets in our model. Our quality metrics, which include such measures as profit margins and return on equity, are positive. Our earnings growth factor and our macroeconomic factors are negative for emerging markets. Lastly, our risk aversion factor concludes that investors’ appetite for risk is low, a positive 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.