PERFORMANCE REVIEW for the month ended 30 Nov 2018

Emerging market equities rebounded in November, outperforming global developed markets. The MSCI Emerging Markets Index (“Index”) returned 2.97% in local currency terms during the month. All three region groups within the Index delivered positive local currency returns in November. Led by China and India, emerging Asia was the top performing region group in local currency terms. Emerging Europe, Middle East, and Africa (“EMEA”) was buoyed by positive returns in South Africa, the largest country weight within the region group. Within the emerging Latin America region, Brazil was the top performing country in local currency terms. Real estate, industrials, and information technology were the top performing sectors within the Index during the month. Energy, materials, and telecommunication services were the weakest performing sectors in local currency terms.

The Portfolio underperformed the Index in November 2018. We use both bottom-up and top-down factor categories to forecast alpha (return in excess of the Index) for the stocks in the Portfolio's investable universe. Our bottom-up value factor category was a strong indicator in November and the factor is now outperforming over most recent periods. The earnings growth factor category underperformed during the month. The price momentum factor category, as measured by our technical factors, was negative in November and has been the poorest performing factor over most recent periods. Of our top-down factors, the country and currency factors were positive indicators during the month while the macroeconomic factor was neutral. The sector factor was a negative indicator of performance during the month, but this factor has delivered positive performance over longer measurement periods.

Over the month, Portfolio positioning in emerging Asia detracted from relative performance versus the Index, primarily driven by negative stock selection in India and South Korea. Within the EMEA region, an underweight position in South Africa detracted from relative performance. Positioning in the emerging Latin America region contributed to performance, due in part to positive stock selection in Brazil. From a sector perspective, the largest detractors from relative performance were financials, information technology, and materials. Positioning in the consumer discretionary, telecommunication services, and industrials sectors contributed to relative performance. The largest stock-level detractors from relative performance included underweight positions in electronic & print media platform operator, Naspers Ltd. (South Africa) and real estate development company, Housing Development & Infrastructure Ltd. (India), and overweight positions in electronic component manufacturing company, Catcher Technology Co. Ltd. (Taiwan), diversified metals & mining operator, Vale SA (Brazil), and integrated oil & gas company, SK Innovation Co., Ltd. (South Korea). The greatest stock-level contributors to relative performance included overweight positions in online services company, Tencent Holdings Ltd. (China), restaurant franchisee, Jubilant FoodWorks Ltd. (India), construction company, Larsen & Toubro Ltd. (India), and real estate developer, Shimao Property Holdings Ltd. (China), and an underweight position in oil & gas exploration company, Petroleo Brasileiro SA (Brazil).*

*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 portfolio holdings and characteristics are subject to change. There is no guarantee that any forecasts made will come to pass. The 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. Past performance does not guarantee future results.  For a description of our performance attribution methodology, or to obtain a list showing every holding's contribution to the overall account's performance during the quarter, please contact our product manager, Kevin Moutes, at 310-231-6116 or moutes@causewaycap.com.