Cullen North American High Dividend Value Equity I GBP Hgd

Invests in dividend-paying US large cap equities

  • 1281.00p
    Price (Inc)

    These are the shares in the fund that pay out an income to clients. The income is made up of the total dividends – the money a company can pay out to its investors – from the companies in the fund.

  • 1411.00p
    Price (Acc)

    These are the shares in the fund that don’t pay out an income to clients. Any dividends – the money a company can pay out to its investors – are reinvested into companies in the fund. Despite no income, the shares should be worth more over time. Good incentive, eh?

  • 0.00%

    Initial charge

    Some funds charge you when you first invest, which is aptly known as the initial charge. They’re usually between 3-5% but at Bestinvest, we usually don’t charge you a penny!

  • 0.75%
    Annual management charge

    This is how much the fund management company charges to run the fund. It’s like paying a babysitter, dog sitter or house sitter (that makes well-informed, heavily researched changes to improve your baby/dog/house when needed).

  • 0.97%
    Ongoing charges

    This stands for Ongoing Charges Figure. It’s the cost of running a fund and includes admin fees, manager fees, administration costs, etc.

  • 2.70%

    How much the fund is currently paying out in income to investors. It’s NOT to be confused with the overall growth of a fund – a very different thing indeed. It’s also NOT a guarantee of future pay-outs, just a snapshot. This is more what it’s not than what it is…

Prices as at 26 May 2020, fund data last updated 10 December 2014

The investment objective of the North American High Dividend Value Equity Fund is to seek long-term capital appreciation and current income by investing in dividend paying securities. Key features of the fund: low turnover; invests in large US companies (with market capitalisation above US$5bn) with global franchises; may invest up to 20% in non-US companies; a focused portfolio of c.35 stocks; the fund's dividend yield is more than 3.5%.

Fund summary

Sector North America
Launched December, 2010
Size £321m
Yield 2.70%
Charging basis Capital
Dividends paid Mar,Jun,Sep,Dec


Standard initial charge 0.00%
Initial charge via Bestinvest 0.00%
Additional bid/offer spread 0.00%
Annual management charge 0.75%
Ongoing charges figure 0.97%


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Investment process

Jim Cullen and Jenny Chang are jointly responsible for final decisions on the fund, supported by 11 investment professionals. They are value investors looking at companies trading on lower ratios than the market, with a higher yield and near term catalysts that will materially increase earnings or dividends. Their investment strategy started in 1994 and uses investment screens: market value above U$5bn; price to earnings ratio must be in the bottom quintile of the S&P500 index; price to book less than the index; debt/capital less than the index; dividend yield above 3% with the prospect of dividend growth; low dividend pay-out ratios. Their “meta stock” in-house investment tool monitors share price momentum and helps identify under and over owned stocks. They use their own in-house research and have high conviction in their investments, holding only 25 to 35 stocks. They engage with company CEOs to encourage dividend payment over share buybacks. Sell signals include changing company or sector fundamentals; PE rising to the top market quintile; dividend falling below 2%. There is no currency hedging at the portfolio level but hedged share classes are available

•The firm is based in New York City, started in 1983, has 40 staff, is 100% owned by employees and manages nearly U$20bn across 8 strategies. The US high dividend equity strategy has over U$12bn. •Pros: Low turnover (4 names pa). Only in US large caps (>U$ market cap; focused portfolio ~35 stocks; fund yields >3.5%. •Cons: Has at most 20% in non US stocks (eg Roche, HSBC, Shell, Diageo) so will have overlap with UK and Europe equity income funds. •This could be a good alternative to Aviva Investors US Equity Income II, which only has 72% in large caps. •The fund has both hedged and unhedged share classes available on our Online Investment Service, but not on Cofunds Retail or FundsNetwork.

Manager research

Average monthly relative returns

  • 15/16 0.09%
  • 16/17 -0.49%
  • 17/18 0.14%
  • 18/19 -0.23%
  • 19/20 -0.86%

Bestinvest MRI

  • 3 years -0.32%
  • 5 years -0.27%
  • Career -0.26%
  • 3 years 16.90%
  • 5 years 17.40%
  • Career 15.20%

Performance figures are based on the average of monthly percentage returns relative to the benchmark index.

Jennifer Chang

Chang is the portfolio manager for both the High Dividend and Value Equity strategies, having previously been the head of research at the firm. Prior to joining Schafer Cullen Capital Management and Cullen Capital Management in 2006, Chang was an Investment Analyst at PNC Advisors and an Associate Consultant at Bain & Company. Chang received her MBA from the Wharton School of Business in 2004 and her B.S. from Rice University in 1999.

Track record

Jennifer Chang has 6.1 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.26%. During the worst period of relative performance (from April 2014 - April 2020) there was a decline of 19% relative to the index. The worst absolute loss has been 21%.

Periods of worst performance

Absolute -21.00% (September 2019 - March 2020)
Relative -19.00% (April 2014 - April 2020)

About the MRI

Our unique indicator: the Bestinvest Manager Record Index (MRI) measures the likelihood that the fund manager is adding value through their decisions. It is based on their performance record over the course of their career, adjusted for the amount of risk taken. MRI is an important contributor to our fund rating system but it is also vital to take account of qualitative factors. It is also very important to select funds to form a cohesive portfolio with an appropriate overall risk level.


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Top 10 holdings

Data accurate as at 30 September 2014

3.7% Eli Lilly & Co.
3.6% Microsoft
3.6% Travelers
3.5% Altria Group
3.5% Raytheon
3.4% Johnson & Johnson
3.4% JP Morgan
3.4% Merck & Co.
3.4% Royal Dutch Shell
3.3% ConocoPhillips
Source: Cullen


As at 30/09/14: 37 holdings


25-35 stocks. 15-20 industries. mkt value >U$5bn; max 5% in one stock. max 15% in one industry. max 30% in overseas stocks; P/E < S&P500; P/B <S&P500 ; Debt/Capital <S&P 500; Dividend Yield > S&P500; Low dividend payout ratios; average turnover 20%.

Key Investor Information - Income


Key Investor Information - Accumulation