Schafer Cullen Global ADR

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Strategy

Global High Dividend ADR

Investment Strategy

  •  30-45 undervalued global large cap stocks
  • Low P/E with growing earnings & dividends
  • High current dividend yield (target of above 4%)   
Strategy AUM
$206m (Sep 30, 2021)
Holdings
35-45
Benchmarks
MSCI ACWI
Inception Date
Feb 28, 2007

Strategy Attributes

The Global High Dividend strategy provides investors with a way to participate in the upside potential of global equities while at the same time generating current income and benefiting from greater than average downside protection, given dividend yield support. We invest primarily in U.S. and international companies that trade on global exchanges. While the global 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 mitigate this risk and reduce the overall volatility of the portfolio.

We select global stocks that combine low P/E discipline, high dividend yields and strong dividend growth.

  • The Global High Dividend ADR portfolio invests in undervalued, US and International equities that offer ADRs with above average earnings growth and dividend yields (targets 4%+).
  • This concentrated portfolio of 30-45 stocks is diversified across all sectors of the market.

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

Screen for Value:

  • Begin with the largest 2,000 publicly traded equities
  • Typical market capitalization > $1 billion
  • Identify sector and industry inflection points

Fundamental Research:

  • Attractive Valuations
  • Dominant Company Characteristics
  • Catalysts for Price and EPS Appreciation
  • Superior Dividend Policies
  • Stable Macroeconomic and Geopolitical Environment

Portfolio Construction:

  • Approximately 35-45 holdings
  • No more than 30% in any one sector at cost
  • No more than 15% in any one industry at cost
  • No more than 5% in any one stock at cost
  • Generally, no more than 20% in any one country at cost
  • Top 10 holdings typically represent 35 – 40%
  • Approx. 90% in ADRs
  • 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

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