PERFORMANCE REVIEW for the month ended 31 July 2018

Despite increasing trade tensions, global equity markets appreciated in July, with a tailwind of positive earnings surprises and benign economic conditions. International smaller capitalization (“cap”) equities, as measured by the MSCI ACWI ex USA Small Cap Index (“Index”), underperformed international large caps in July. Within international smaller cap equities, emerging markets stocks outperformed developed markets stocks in July, although they have underperformed significantly in the year-to-date period, as the strength in the US dollar and global trade tensions have pressured emerging markets more than developed markets. From a sector perspective, the strongest performers during the month were telecommunications services, financials, and utilities. Consumer staples, consumer discretionary, and information technology were among the weakest performing sectors.

Causeway International Small Cap Fund (“Fund”) outperformed the Index during the month. To evaluate stocks in our investable universe, our multi-factor quantitative model employs four bottom-up factor categories: valuation, earnings growth, technical indicators, and quality; and employs two top-down factor categories: macroeconomic and country. Though we analyze many different stock selection factors in our alpha model, value factors currently receive the largest weight, on average.

In July, value factors posted their strongest monthly performance in two years, however they still remain the weakest alpha factor group over the year-to-date period and over the past 12 months. Despite negative returns in July, earnings growth factors remain the best performing factor group over the year-to-date period and over the last 12 months. Technical factors posted the worst performance in July among our alpha factor groups as we saw a momentum reversal; however momentum’s performance is still positive over the year-to-date period and over the last 12 months. The quality factor group posted negative returns in July, and these factors remain modestly positive over the last 12 months. All bottom-up factor group returns are positive from the inception of the Fund to the end of July. Within our top-down factor groups, our macroeconomic factors posted positive returns in July as countries with superior macroeconomic metrics outperformed those exhibiting relatively weaker metrics. However, returns to our country aggregate factors were negative in July. Fund holdings in the consumer staples, energy, and information technology sectors contributed the most to relative outperformance. Holdings in the financials, industrials, and health care sectors offset a portion of the performance. Relative performance for the month can be mostly attributed to stock selection.

The largest contributor to performance relative to the Index was coal exploration & mining operator, PT Indo Tambangraya Tbk (Indonesia). Additional top contributors included beverage manufacturer & distributor, C&C Group Plc (United Kingdom), integrated oil refiner & producer, Esso Thailand Public Co. Ltd. (Thailand), cement manufacturer & distributor, Huaxin Cement Co., Ltd. (China), and electronic equipment manufacturer, Coretronic Corp. (Taiwan). The largest detractor from relative performance was pharmaceutical company, China Shineway Pharmaceutical Group Ltd.(China). Additional top detractors included mineral & mining company, Sandfire Resources NL (Australia), consulting services provider, Mitsubishi Research Institute, Inc. (Japan), asset management group, GAM Holding AG (Switzerland), and transportation company, Nobina AB (Sweden).

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.