Schafer Cullen International High Dividend Value Equity


Strategy Overview

Portfolio Managers: Jim Cullen and Rahul Sharma Firm Strategy AUM: $3.3 billion as of 06/30/2020 Benchmark: MSCI EAFE Index & MSCI AC World Ex USA Index

In 1994, for investors more concerned with risk, Schafer Cullen Capital Management began managing portfolios with the Schafer Cullen High Dividend Value Equity strategy. The High Dividend strategy takes a conservative approach by including a high yield component to our low P/E discipline. Over time, significant allocations of our portfolios were invested in ADRs of international companies which added, what we considered, outstanding risk adjusted performance to our portfolios.

In 2004, for investors seeking current income and international exposure, we began managing the Schafer Cullen International High Dividend Value Equity portfolio. This strategy gives investors a way to participate in the long-term upside potential of international equities while at the same time providing greater than average downside protection, given dividend yield support. Here, we select international stocks that combine the following:

  • Low P/E Discipline
  • High Dividend Yields
  • Strong Dividend Growth

We invest primarily in non-US companies whose stocks trade on foreign exchanges or offer ADRs that trade on US exchanges. By applying the Schafer Cullen High Dividend Equity investment process to an international universe, investors gain exposure to the stronger diversification and valuation characteristics of international equities, as well as the higher dividend yields and dividend growth that these equities often offer relative to US stocks.

While the foreign markets provide considerable upside potential, they are also exposed to additional political and currency risk. We believe the combination of low P/E, high dividend yield and dividend growth should offset this risk and reduce the overall volatility of the portfolio.