Emerging Markets UCITS Fund – EUR

Portfolio Attribution

Causeway Emerging Markets UCITS Fund (“Fund”) underperformed the Index in November 2020. We use both bottom-up “stock-specific” and top-down factor categories to seek to forecast alpha for the stocks in the Fund’s investable universe. As many stock prices sharply reversed course following the vaccine announcements, our bottom-up price momentum factor was the poorest performing indicator during the month. Our bottom-up earnings growth and valuation factors were also negative indicators in November. Of our top-down factors, sector, currency, and macroeconomic were negative indicators while country was positive.

Investment Outlook

Earnings growth prospects have continued to improve for many EM companies. Earnings growth upgrades have exceeded downgrades in all but two sectors. The information technology, communication services, and consumer discretionary sectors have experienced the strongest net upgrades. Information technology companies continue to benefit from increased technological adoption during the pandemic as well as strong demand related to 5G. Communication services, which is dominated by the internet giants, is also benefitting from stay-at-home activities. Consumer discretionary has been buoyed the resumption of global growth and significant exposure to e-commerce. From a country perspective, Taiwan experienced the strongest net upgrades, primarily driven by information technology companies. Prospects for Malaysian companies have also improved as analysts have upgraded the outlook for banks, which were heavily downgraded earlier in the year. Earnings growth prospects for companies in the commodity-orientedeconomies of South Africa and Brazil were also severely impacted in the early months of the COVID-19 pandemic and have since rebounded.

While our value factor underperformed in November, the MSCI Emerging Markets Value Index outperformed the MSCI Emerging Markets Growth Index by 6.2% in local currency terms during the month. Much of the performance differential was attributable to one Chinese consumer discretionary company, which underperformed as mentioned above and has a large weight in the MSCI Emerging Markets Growth Index. This effect was less pronouncedin our value factor, which is measured on an equal-weighted basis. Sector effects also explained some of the discrepancy between the MSCI indices and our value factor. Financials, which comprise a large portion of the MSCI Emerging Markets Value Index, performed well in November. Our value factor is sector neutral so the financials performance was less impactful. We continue to emphasize value factors in our multi-factor investment process. Looking forward, we believe that EM value stocks are poised to rebound given the valuation discount, the anticipated resumption of global growth in 2021, and the upcoming rollout of highly effective COVID-19 vaccines.

Emerging Markets UCITS Fund

Portfolio Attribution

Causeway Emerging Markets Fund (“Fund”) underperformed the Index in November 2020. We use both bottom-up “stock-specific” and top-down factor categories to seek to forecast alpha for the stocks in the Fund’s investable universe. As many stock prices sharply reversed course following the vaccine announcements, our bottom-up price momentum factor was the poorest performing indicator during the month. Our bottom-up earnings growth and valuation factors were also negative indicators in November. Of our top-down factors, sector, currency, and macroeconomic were negative indicators while country was positive.

Investment Outlook

Earnings growth prospects have continued to improve for many EM companies. Earnings growth upgrades have exceeded downgrades in all but two sectors. The information technology, communication services, and consumer discretionary sectors have experienced the strongest net upgrades. Information technology companies continue to benefit from increased technological adoption during the pandemic as well as strong demand related to 5G. Communication services, which is dominated by the internet giants, is also benefitting from stay-at-home activities. Consumer discretionary has been buoyed the resumption of global growth and significant exposure to e-commerce. From a country perspective, Taiwan experienced the strongest net upgrades, primarily driven by information technology companies. Prospects for Malaysian companies have also improved as analysts have upgraded the outlook for banks, which were heavily downgraded earlier in the year. Earnings growth prospects for companies in the commodity-orientedeconomies of South Africa and Brazil were also severely impacted in the early months of the COVID-19 pandemic and have since rebounded.

While our value factor underperformed in November, the MSCI Emerging Markets Value Index outperformed the MSCI Emerging Markets Growth Index by 6.2% in local currency terms during the month. Much of the performance differential was attributable to one Chinese consumer discretionary company, which underperformed as mentioned above and has a large weight in the MSCI Emerging Markets Growth Index. This effect was less pronouncedin our value factor, which is measured on an equal-weighted basis. Sector effects also explained some of the discrepancy between the MSCI indices and our value factor. Financials, which comprise a large portion of the MSCI Emerging Markets Value Index, performed well in November. Our value factor is sector neutral so the financials performance was less impactful. We continue to emphasize value factors in our multi-factor investment process. Looking forward, we believe that EM value stocks are poised to rebound given the valuation discount, the anticipated resumption of global growth in 2021, and the upcoming rollout of highly effective COVID-19 vaccines.

Global Value UCITS Fund

Portfolio Attribution

Causeway Global Value UCITS Fund – USD share class (“Fund”) underperformed the Index during the month, due primarily to stock selection. Holdings in the energy, media & entertainment, software & services, materials, and automobiles & components industry groups detracted from performance compared to the Index. Fund holdings in the retailing, capital goods, technology hardware & equipment, and food beverage & tobacco industry groups, as well as an underweight position in the consumer durables & apparel industry group, contributed to relative performance. The largest detractor was oil exploration & production company, Ovintiv (Canada). Additional notable detractors included automobile manufacturer, Volkswagen AG (Germany), ViacomCBS, Inc. (United States), diversified chemicals manufacturer, BASF SE (Germany), and banking & financial services company, UniCredit S.p.A. (Italy). The top contributor to return was specialty retail jeweler, Signet Group (United States). Other notable contributors included power & healthcare conglomerate, General Electric Co. (United States), design-to-distribution business process services technology company, SYNNEX Corp. (United States), software giant, Microsoft Corp. (United States), and British American Tobacco plc (United Kingdom).

Investment Outlook

In the prevailing global interest rate environment with the opportunity cost of owning long duration growth stocks low to negative, investors have continued to bid up expensive stocks to even higher valuations. Should these seemingly speculative, currently high valuation stocks fail to live up to their elevated expectations, we anticipate that the stable cash flows of economically sensitive, yet financially robust, companies would attract investor attention. Our fundamental research seeks to identify well-managed companies with strong balance sheets, with company leaders committed to improving earnings. As we wait for these companies to emerge from operational setbacks and reignite growth, they typically generate sufficient cash flow to reward shareholders via dividends and share buybacks. In the current low interest rate environment, we find the income from these undervalued stocks especially compelling as a major component of total return.