CULLEN NORTH AMERICAN HIGH DIVIDEND VALUE EQUITY P GBP UNHGD

Invests in dividend-paying US large cap equities

  • 1583.00p Price (Inc)
  • 1583.00p Price (Acc)
  • 0.00%

    Initial charge
  • 0.75% Annual management charge
  • 0.97% Ongoing charges
  • 2.70% Yield

Prices as at 10 December 2014 , fund data last updated 15 November 2019

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
Structure OFFSHORE FUND
Launched August, 2013
Size £415m
Yield 2.70%
Charging basis Capital
Dividends paid Mar,Jun,Sep,Dec

Charges

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

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

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$5.bn 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

Bestinvest MRI

14/15 15/16 16/17 17/18 18/19 3 years 5 years Career 3 years 5 years Career
-0.17% -0.13% -0.33% 0.18% -0.13% -0.09% -0.12% -0.11% 48.00% 42.10% 42.90%

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 5.5 years experience of managing mutual funds in this sector. Over this period the average monthly return relative to the benchmark index has been -0.11%. During the worst period of relative performance (from April 2014 - November 2016) there was a decline of 13% relative to the index. The worst absolute loss has been 9%.

Periods of worst performance

Absolute -9.00% (March 2015 - August 2015)
Relative -13.00% (April 2014 - November 2016)

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.

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

Allocation

Proportion (%)

  • {{chartDataItem.text}}
    {{chartDataItem.value}}

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

Portfolio

As at 30/09/14: 37 holdings

Constraints

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 Documents

Download