Causeway Funds/Causeway Capital Management LLC

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as of 9/8/2010

(NAV, %change)
International Value Fund Investor Class (CIVVX) $11.07     .54%    
Institutional Class (CIVIX) $11.14     .45%    

Emerging Markets Fund Investor Class (CEMVX) $10.37     .77%    
Institutional Class (CEMIX) $10.30     .78%    

Global Value Fund Institutional Class (CGVIX) $7.54     .66%    

International Opportunities Fund Investor Class (CIOVX) $9.98     .5%    
Institutional Class (CIOIX) $9.98     .5%    
The performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth less than their original cost and current performance may be lower than the performance quoted. Please click the link above for standardized and month-end performance.







Commentary

Causeway International Value Fund
Review for Quarter Ended 6/30/10


Performance Review
The second quarter was the first negative quarter for equity markets since the first quarter of 2009. Concern about sovereign debt issues and sluggish global economic growth weighed on equity markets this period. Investor nervousness increased demonstrably, with the Chicago Board Options Exchange Volatility Index (“VIX”), a popular measure of the implied volatility of S&P 500 index options, doubling from its low in the quarter. Returns for international equities denominated in U.S. dollars were further pressured by the translation effects of dollar strength versus nearly all other major currencies (the Japanese yen was a notable exception). The euro was particularly weak, losing over 10% versus the U.S. dollar this quarter. Every industry group and developed country (except Singapore) delivered negative returns this period. The worst performance came from Greece, which lost 34% in local terms (40% when measured in U.S. dollars). The Fund modestly underperformed the MSCI EAFE® Index in the second quarter. Fund holdings in the utilities, consumer services, and pharmaceuticals & biotechnology industry groups detracted from relative performance, while holdings in the capital goods, materials, and insurance industry groups contributed to relative performance gains. Two of the largest individual detractors from performance were energy services companies, Technip (France) and Transocean (Switzerland). Investors are concerned about the impact of BP’s Gulf oil spill. Additional top detractors included construction & toll roads/car parks concessions operator, Vinci (France), sports betting & lottery provider, OPAP (Greece), and PVC, silicon, & semiconductor wafer producer, Shin-Etsu Chemical Co (Japan). Two of the largest individual contributors to return were industrial machine manufacturers: automation & robotics manufacturer, Fanuc (Japan), and automation controls & pneumatic equipment manufacturer, SMC Corp (Japan). Other notable top contributors included aerospace and defense equipment manufacturer, EADS (France), beverage can & plastic cap manufacturer, Rexam (United Kingdom), and life insurer, Sony Financial Holdings (Japan).

*Weights as of 6/30/10: Technip (2.7%), Transocean (0.7%), Vinci (2.2%), OPAP (0.9%), Shin-Etsu Chemical Co (2.2%), Fanuc (2.6%), SMC Corp (1.2%), EADS (2.1%), Rexam (1.5%), Sony Financial Holdings (2.4%). Holdings are subject to change; additionally, current and future holdings are subject to risk.


Significant Portfolio Changes
Purchases Country Industry
MUNICH RE Germany Insurance
TRANSOCEAN LTD Switzerland Energy
KT&G CORP South Korea Food, Beverage, & Tobacco
ENAGAS Spain Utilities
RIO TINTO PLC United Kingdom Materials
Sells Country Industry
FRANCE TELECOM SA France Telecommunication Services
ACCOR SA France Consumer Services
AKER SOLUTIONS ASA Norway Energy
ASMIL HOLDING NV Netherlands Semiconductors & Semi Equipment
SIEMENS AG Germany Capital Goods



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 objective. The Funds are available to U.S. investors only. There is a 2% redemption fee on the value of direct investments withdrawn within 60 days. This is to protect shareholders from short-term investors who can hurt performance for long-term shareholders. Many of the financial intermediaries through whom shareholders invest in the Funds also apply the Funds' 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.