PERFORMANCE REVIEW for the month ended 31 Oct 2018

Most developed equity markets declined in October, as global monetary liquidity continued to decrease and stock volatility increased. Emerging market equities also posted negative returns during the month, amid continuing trade tensions between the US and China. The top performing markets in our investable universe included Brazil, Qatar, the United Arab Emirates, Peru, and the Philippines. The worst performing markets included Mexico, South Korea, Colombia, Taiwan, and Belgium. Defensive sectors generally outperformed cyclical sectors in the month. The best performing sectors in the MSCI ACWI ex US Index (“Index”) were utilities, consumer staples, and telecommunication services. The worst performing sectors were information technology, industrials, and consumer discretionary. Every major currency except the Japanese yen depreciated versus the US dollar during the period, thus diminishing overall returns on overseas assets for US dollar-based investors.

Causeway International Opportunities Fund (“Fund”) outperformed the Index during the month, due primarily to country allocation (a byproduct of our bottom-up stock selection process). Fund holdings in the pharmaceuticals & biotechnology, materials, automobiles & components, consumer durables & apparel, and transportation industry groups contributed to relative outperformance. Holdings in the insurance, energy, telecommunication services, real estate, and technology hardware & equipment industry groups offset some of the outperformance. The top contributor to return was bank, Banco do Brasil SA (Brazil). Other notable contributors included financial & industrial holdings company, Investimentos Itau (Brazil), pharmaceutical & healthcare products producer, Novartis AG (Switzerland), graphite electrode manufacturer, HEG Ltd. (India), and multinational food processing company, JBS SA (Brazil). The largest detractor was banking & financial services company, UniCredit S.p.A. (Italy). Additional notable detractors included oil & natural gas producer, Encana (Canada), power & automation technology company, ABB Ltd. (Switzerland), diversified chemicals manufacturer, BASF SE (Germany), and life insurer, Prudential Plc (United Kingdom).

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.