Schafer Cullen Emerging Markets High Dividend


Investment Process

The Schafer Cullen investment team relies heavily on fundamental research as part of its investment selection process. Because the firm has a disciplined value investment philosophy, a rigorous review of company fundamentals vs. industry peer and the overall market is an important part of the investment process.

Screen For Value:

  • Screen universe of local shares and ADRs For:
    • Low P/E Ratios
    • High dividend yield
    • Long-term DPS growth
    • Long-term EPS growth
  • Price Momentum Trend
  • Corp. Governance Review

Fundamental Research:

  • Attractive valuations
  • Dominant company characteristics
  • Catalysts for price and EPS appreciation
  • Superior dividend policies
  • Stable macroeconomic and geopolitical environment

Portfolio Construction:

  • Approximately 45-55 holdings
  • Diversification across all 10 market sectors
  • No more than 5% in any one stock (at cost)
  • No more than 20% in any one industry (at cost)
  • Generally, no more than 30% in any one country
  • Top 10 holdings typically represent 35 – 40%
  • Continual portfolio upgrade

Sell Discipline:

  • Price objectives reached
  • Earnings growth not realized
  • Deteriorating fundamentals
  • Tax reasons
  • Changes in dividend policy
  • Overvaluation
  • Change in market thesis
  • Portfolio upgrade