Global Enhanced Equity Income

None
Strategy

Global Enhanced Equity Income

Investment Strategy

  • 40-50 undervalued global large-cap stocks
  • Select covered calls written on generally 25-40% of the portfolio to generate increased income
  • Portfolio yield target is 8%+ (net) generated through 4% dividend yield and 4%+ call premium yield
Holdings
40-50
Benchmarks
MSCI World
Inception Date
Oct 2, 2017

Strategy Attributes

The Global Enhanced Equity Income fund applies the same value investment discipline as the Global High Dividend Value Equity strategy but adds selectively-written calls on a portion of the stock portfolio to generate additional income. It invests in high dividend stocks and sells short-term call options on 25-40% of the portfolio to generate increased income for investors.

The portfolio yield target is 8%+ (net), which is generated through a 4%+ dividend yield and a 4%+ call premium yield.   Investors participate in the long-term appreciation of equities while realizing reduced volatility from disciplined value investment and income generation.

The covered call overlay is designed to enhance income and risk-adjusted total return. Call options are sold based on quantitative factors such as equity valuation and fundamentals, and quantitative factors such as premium return thresholds. Call options are short in duration to maximize time-value-of-money receipt and visibility of equity-market catalysts.

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.

Jim Cullen, Portfolio Manager

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