Causeway International Value Fund commentary for the fourth quarter 2014.

After a liquidity-fueled ascent in the first half of 2014, international equities reached a plateau during the third quarter. The MSCI EAFE Index (“Index”) posted a small positive return in local terms, but US dollar strength versus international currencies pushed dollar-denominated returns into negative territory. The top performing countries during the quarter were Israel, Singapore, Japan, Hong Kong, and Finland. Several markets declined steeply over the period including Portugal, Austria, Germany, New Zealand, and Italy. The best performing sectors in the Index were health care, information technology, financials, telecommunication services, and utilities. The worst performing sectors were energy, materials, consumer discretionary, industrials, and consumer staples.

Causeway International Value Fund: Performance and portfolio holdings

The Fund outperformed the Index for the third quarter due to positive stock selection across regions and industry groups. Holdings in the telecommunication services, banks, pharmaceuticals & biotechnology, consumer services, and utilities industry groups contributed to relative performance, while holdings in the capital goods and automobiles & components industry groups, along with an overweight position in the energy industry group and underweight position in the health care equipment & services and technology hardware & equipment industry groups detracted from relative performance. The largest individual contributor to positive performance this quarter was mobile telecommunications operator, China Mobile Ltd. (CHL) (Hong Kong). Additional top contributors included wireless communications operator, SK Telecom Co., Ltd. (SKM) (South Korea), electric utility, Korea Electric Power Corp. (KEP) (South Korea), pharmaceutical giant, Sanofi (SNY)(France), and PVC pipe & silicon chip producer, Shin-Etsu Chemical Co., Ltd. (TSE:4063) (Japan). The top individual detractor from performance was energy services firm, Technip SA (France). Other top detractors included luxury automobile & truck manufacturer, Daimler AG (Germany), paints & coatings producer, Akzo Nobel NV (Netherlands), energy management firm, Schneider Electric SE (France), and lowvoltage electronics manufacturer, Legrand SA (France).

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.

Causeway
International Value Fund
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MSCI has not approved, reviewed or produced this report, makes no express or implied warranties or representations and is not liable whatsoever for any data in the report. You may not redistribute the MSCI data or use it as a basis for other indices or investment products.

The market commentary expresses the portfolio managers’ views as of the date hereof, and should not be relied on by the reader as research or investment advice regarding any stock. These views are subject to change. There is no guarantee that any forecasts made will come to pass. Holdings, country, and industry allocations are subject to change. Current and future holdings are subject to risk.

Investing involves risk including loss of principal. In addition to the normal risks associated with investing, international investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. Diversification does not prevent all investment losses.

To determine if a Fund is an appropriate investment for you, carefully consider the Fund’s investment objectives, risk factors, charges and expenses before investing. This and other information can be found in the Fund’s prospectus, which may be viewed and downloaded by clicking here or by calling 1-866-947-7000. Read it carefully before investing.

There is no guarantee that the Causeway Funds will meet their stated objectives. The Funds are available to U.S. investors only. There is a 2% redemption fee on shares held less than 60 days to protect shareholders from short-term investors. If your account incurred a redemption fee, your performance will be lower than the performance quoted. If you invest through a financial intermediary, it may apply the Fund’s redemption fee or other frequent trading restrictions.

The Causeway Funds are distributed by SEI Investments Distribution Co. (SIDCO). SIDCO is not affiliated with Causeway Capital Management LLC.

The Morningstar Analyst Rating is not a credit or risk rating. It is a subjective evaluation performed by the mutual fund analysts of Morningstar, Inc. Morningstar evaluates funds based on five key pillars, which are process, performance, people, parent, and price. Morningstar’s analysts use this five pillar evaluation to identify funds they believe are more likely to outperform over the long term on a risk-adjusted basis. Analysts consider quantitative and qualitative factors in their research, and the weighting of each pillar may vary. The Analyst Rating ultimately reflects the analyst’s overall assessment and is overseen by Morningstar’s Analyst Rating Committee. The approach serves not as a formula but as a framework to ensure consistency across Morningstar’s global coverage universe.

The Morningstar Analyst Rating should not be used as the sole basis in evaluating a mutual fund. Morningstar Analyst Ratings are based on Morningstar’s current expectations about future events; therefore, in no way does Morningstar represent ratings as a guarantee nor should they be viewed by an investor as such. Morningstar Analyst Ratings involve unknown risks and uncertainties which may cause Morningstar’s expectations not to occur or to differ significantly from what we expected.

The Analyst Rating scale ranges from Gold to Negative, with Gold being the highest rating and Negative being the lowest rating. A fund with a “Gold” rating distinguishes itself across the five pillars and has garnered the analysts’ highest level of conviction. A fund with a ‘Silver’ rating has notable advantages across several, but perhaps not all, of the five pillars-strengths that give the analysts a high level of conviction. A “Bronze”-rated fund has advantages that outweigh the disadvantages across the five pillars, with sufficient level of analyst conviction to warrant a positive rating. A fund with a ‘Neutral’ rating isn’t seriously flawed across the five pillars, nor does it distinguish itself very positively. A “Negative” rated fund is flawed in at least one if not more pillars and is considered an inferior offering to its peers. Analyst Ratings are reevaluated at least every 14 months.

Causeway International Value Fund 4Q14 Commentary