UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-09871
CULLEN FUNDS TRUST
(exact name of registrant as specified in charter)
645 Fifth Avenue, New York, NY 10022
(Address of principal executive offices) (Zip code)
Brooks Cullen
645 Fifth Avenue
New York, NY 10022
(Name and address of agent for service)
Registrant’s telephone number, including area code: 212-644-1800
Date of fiscal year end: June 30
Date of reporting period: July 1, 2017 – June 30, 2018
Item 1. | Report to Shareholders. |
ANNUAL REPORT
JUNE 30, 2018
International High Dividend | High Dividend Equity | Small Cap Value
Value | Emerging Markets High Dividend | Enhanced Equity Income
Cullen Funds Trust | Shareholder Letter |
June 30, 2018 (Unaudited) |
August 23, 2018
Retail Class Performance for the fiscal year ended June 30, 2018 for the Cullen High Dividend Equity Fund (“High Dividend Fund”), Cullen International High Dividend Fund (“International High Dividend Fund”), Cullen Small Cap Value Fund (“Small Cap Fund”), Cullen Value Fund (“Value Fund”), Cullen Emerging Markets High Dividend Fund (“Emerging Markets High Dividend Fund”), and Cullen Enhanced Equity Income Fund (“Enhanced Equity Income Fund”) versus their respective benchmarks was as follows:
Fund/Benchmark | Performance | |
Cullen High Dividend Equity Fund | 4.67% | |
S&P 500 Index | 14.37% | |
Cullen International High Dividend Fund | -1.60% | |
MSCI EAFE Index | 7.37% | |
Cullen Small Cap Value Fund | 7.38% | |
Russell 2500 Value Index | 11.49% | |
Cullen Value Fund | 7.97% | |
S&P 500 Index | 14.37% | |
Cullen Emerging Markets High Dividend Fund | 2.48% | |
MSCI Emerging Markets Index | 8.20% | |
Cullen Enhanced Equity Income Fund | -0.51% | |
CBOE S&P 500 BuyWrite Index | 7.28% |
Please refer to the financial highlights for each Fund’s respective share class’ performance on pages 50 - 57 of this annual report.
Portfolio Review High Dividend Fund
The High Dividend Fund’s performance versus the S&P 500 Index during the period was primarily due to the Fund’s stock selection in Financials and underweight allocation to Information Technology. Stock selection within Energy and Utilities partially offset relative performance.
Portfolio Review International High Dividend Fund
The International High Dividend Fund’s performance versus the MSCI EAFE Index during the period was primarily due to the Fund’s overweight allocation to Telecommunications and stock selection in Consumer Discretionary and Consumer Staples. Stock selection within Energy and an overweight allocation to the Materials sector partially offset relative performance during the period.
Portfolio Review Small Cap Fund
The Small Cap Fund’s performance versus the Russell 2500 Value Index during the period was primarily due to stock selection within Industrials, Consumer Discretionary and Materials. The Fund’s underweight allocation to Real Estate and stock selection in Information Technology partially offset relative performance.
Portfolio Review Value Fund
The Value Fund’s performance versus the S&P 500 Index during the period was primarily due to the Fund’s stock selection in Financials and underweight allocation to the Information Technology and Consumer Discretionary sectors. Stock selection in Consumer Staples, Industrials, and Utilities partially offset relative performance.
Portfolio Review Emerging Markets High Dividend Fund
The Emerging Markets High Dividend Fund’s performance versus the MSCI Emerging Markets Index during the period was primarily due to stock selection in Utilities, Financials, and Information Technology as well as its underweight allocation to Information Technology. Partially offsetting relative performance was stock selection in the Industrials, Real Estate, and Energy sectors.
Portfolio Review-Enhanced Equity Income Fund
The Enhanced Equity Income Fund’s performance versus the S&P 500 Index during the period was primarily due to the Fund’s stock selection in Financials and underweight allocation to Information Technology. Stock selection within Energy and Utilities partially offset relative performance. The CBOE S&P 500 BuyWrite Index hypothetically assumes a covered call option is written on the entire underlying S&P 500 Index generally on the third Friday of each month, whereas the Fund selectively writes covered call options on approximately 25-40% of the underlying portfolio as options are deemed attractive to sell. Given the underlying S&P 500 Index’s appreciation during the period, covered call options accordingly
Annual Report | June 30, 2018 | 1 |
Cullen Funds Trust | Shareholder Letter |
June 30, 2018 (Unaudited) |
limited participation in the capital appreciation of the underlying. The Fund’s use of covered call options1 during the period contributed premiums of approximately 3.6% of average net assets during the period.
Outlook
Wall Street and the financial press often talk about risk, but seemingly never as it is linked to performance. Meantime, the average investor, while he certainly wants absolute performance, would also, it seems to us, want risk to be a consideration. In a long bull market, there is a temptation in order to get maximum performance to buy stocks or indexes of the highest price-to-earnings ratio2, most overpriced stocks. On top of that, some Exchange-Traded Funds (ETFs) add leverage to push their performance even more. With the current bull market, the second longest in history, it would seem to be a very good time to pay attention to risk.
The current bull market, the 2nd longest at 112 months and third strongest at +305% since 1930, has remained range-bound this year, as it consolidates the significant gains over the past few years. The market continues to weigh solid US economic and strong corporate earnings growth against the negative impact from recently announced trade tariffs, slowing global growth and the Fed rate hike cycle and balance sheet reduction (quantitative tapering) fueling a stronger US dollar.
This current market has begun to resemble the rally during the peak of the tech bubble in 1999. Then as now, a few tech stocks – currently the FANG issues (Facebook, Amazon, Netflix, Google) – are driving the NASDAQ3 and the S&P 500 to new highs even while the rest of the market is actually down. The FANG stocks are +25% for the year while the S&P 500 without the four stocks is -0.3% for the year. Also the tech weighting of the S&P 500 has now reached 25%, double the normal percentage and one that approaches the tech level weighting of 1999. Not a good time to ignore risk, in our opinion.
No one can predict how long the current FANG stock’s enthusiasm will go on. History shows that long term investors should not try to time the market but also should be aware of risk. Eventually, out of the blue, the rug gets yanked out from under the stock market, and when that happens, you want to make sure that you are falling off the bottom rung of the ladder and not the top one.
In conclusion, our experience and studies suggest that a market participant who focused on a price discipline and invested for the long term did far better than one who reacted to the political and macro-economic headlines of the day. We believe it is an additionally good time to remind of the importance of a safety net, and history shows that an investment strategy that combines a low price/earnings price discipline, high dividend yield4, and dividend growth5 are factors that help when the market turns down.
Sincerely,
James P. Cullen
Chairman and Chief Executive Officer
1 | Covered call option is an options strategy whereby an investor holds a long position in an asset and writes (sells) call options on that same asset in an attempt to generate increased income from the asset. |
2 | The Price-to-Earnings Ratio, or Price/Earnings, is a ratio that measures current share price relative to earnings per share. |
3 | Nasdaq is a global electronic marketplace for buying and selling securities, as well as the benchmark index for U.S. technology stocks. |
4 | A dividend yield is a financial ratio that indicates how much a company pays out in dividends each year relative to its share price. |
5 | Dividend growth is the annualized percentage rate of growth that a particular stock's dividend undergoes over a period of time. |
The above outlook reflects the opinions of the authors, is subject to change, is not guaranteed, and should not be considered investment advice.
The Cullen High Dividend Equity Fund, Cullen International High Dividend Fund, Cullen Value Fund, Cullen Emerging Markets High Dividend Fund, and Cullen Enhanced Equity Income Fund’s investment objectives are capital appreciation and current income. The Cullen Small Cap Value Fund’s objective is capital appreciation
2 | www.cullenfunds.com |
Cullen Funds Trust | Shareholder Letter |
June 30, 2018 (Unaudited) |
Past performance does not guarantee future results. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. You can obtain performance data current to the most recent month end by calling 1-877-485-8586 or visiting our website: www.cullenfunds.com. The Cullen Funds impose a 2% redemption fee on shares held less than seven days. Performance data does not reflect the redemption fee. If reflected, total returns would be reduced.
Mutual fund investing involves risk. Principal loss is possible. The Funds may also invest in medium- and small-capitalization companies, which will involve additional risks such as limited liquidity and greater volatility.
The S&P 500 Index is an unmanaged index commonly used to measure performance of U.S. stocks. The MSCI EAFE Index is an unmanaged index of common stocks in Europe, Australia, Asia and the Far East. The Russell 2500 Value Index is an unmanaged index commonly used to measure performance of small capitalization stocks. The MSCI Emerging Markets Index is an unmanaged index of common stocks in global emerging economies. The CBOE S&P 500 BuyWrite Index is an unmanaged index designed to track the performance of a hypothetical buy-write strategy on the S&P 500 Index, which itself is also unmanaged index commonly used to measure performance of U.S. stocks. It is not possible to invest directly in an index.
Fund holdings and/or sector allocations are subject to change and are not recommendations to buy or sell any security. Please refer to each Fund’s Schedule of Investments in the report for complete fund holdings information.
Current and future portfolio holdings are subject to risk.
Investment performance reflects fee waivers. In the absence of such waivers, total returns would be reduced.
Must be accompanied or preceded by a current prospectus.
The Cullen Funds are distributed by ALPS Distributors, Inc. (8/18)
Annual Report | June 30, 2018 | 3 |
Cullen International High Dividend Fund – Retail Class | Fund Performance |
June 30, 2018 (Unaudited) |
Growth of $10,000 Investment
Average Annual Total Return as of June 30, 2018
Annualized Since | ||||||||||||||||
1 Year | 5 Year | 10 Year | Inception (12/15/05) | |||||||||||||
Cullen International High Dividend Fund – Retail Class | -1.60 | % | 2.52 | % | 0.34 | % | 3.07 | % | ||||||||
MSCI EAFE Index | 7.37 | % | 6.93 | % | 3.33 | % | 4.67 | % |
Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.cullenfunds.com.
The MSCI EAFE Index is an unmanaged index of common stocks in Europe, Australia, Asia and the Far East.
This chart assumes an initial gross investment of $10,000 made on 12/15/05 (commencement of operations). Returns shown include the reinvestment of all dividends but do not reflect the deduction of taxes that you may pay on fund distributions or redemption of shares.
4 | www.cullenfunds.com |
Cullen International High Dividend Fund – Class C | Fund Performance |
June 30, 2018 (Unaudited) |
Growth of $10,000 Investment
Average Annual Total Return as of June 30, 2018
Annualized Since | ||||||||||||||||
1 Year | 5 Year | 10 Year | Inception (12/15/05) | |||||||||||||
Cullen International High Dividend Fund – Class C | -2.34 | % | 1.75 | % | -0.39 | % | 2.33 | % | ||||||||
MSCI EAFE Index | 7.37 | % | 6.93 | % | 3.33 | % | 4.67 | % |
Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.cullenfunds.com.
The MSCI EAFE Index is an unmanaged index of common stocks in Europe, Australia, Asia and the Far East.
This chart assumes an initial gross investment of $10,000 made on 12/15/05 (commencement of operations). Returns shown include the reinvestment of all dividends but do not reflect the deduction of taxes that you may pay on fund distributions or redemption of shares.
Annual Report | June 30, 2018 | 5 |
Cullen International High Dividend Fund – Class I | Fund Performance |
June 30, 2018 (Unaudited) |
Growth of $1,000,000 Investment
Average Annual Total Return as of June 30, 2018
Annualized Since | ||||||||||||||||
1 Year | 5 Year | 10 Year | Inception (12/15/05) | |||||||||||||
Cullen International High Dividend Fund – Class I | -1.34 | % | 2.78 | % | 0.59 | % | 3.35 | % | ||||||||
MSCI EAFE Index | 7.37 | % | 6.93 | % | 3.33 | % | 4.67 | % |
Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.cullenfunds.com.
The MSCI EAFE Index is an unmanaged index of common stocks in Europe, Australia, Asia and the Far East.
This chart assumes an initial gross investment of $1,000,000 made on 12/15/05 (commencement of operations). Returns shown include the reinvestment of all dividends but do not reflect the deduction of taxes that you may pay on fund distributions or redemption of shares.
6 | www.cullenfunds.com |
Cullen International High Dividend Fund – Class R1 | Fund Performance |
June 30, 2018 (Unaudited) |
Growth of $10,000 Investment
Average Annual Total Return as of June 30, 2018
1 Year | 5 Year | Annualized Since Inception (3/3/10) | ||||||||||
Cullen International High Dividend Fund – Class R1 | -2.03 | % | 2.05 | % | 3.55 | % | ||||||
MSCI EAFE Index | 7.37 | % | 6.93 | % | 6.46 | % |
Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.cullenfunds.com.
The MSCI EAFE Index is an unmanaged index of common stocks in Europe, Australia, Asia and the Far East.
This chart assumes an initial gross investment of $10,000 made on 3/3/10 (commencement of operations). Returns shown include the reinvestment of all dividends but do not reflect the deduction of taxes that you may pay on fund distributions or redemption of shares.
Annual Report | June 30, 2018 | 7 |
Cullen International High Dividend Fund – Class R2 | Fund Performance |
June 30, 2018 (Unaudited) |
Growth of $10,000 Investment
Average Annual Total Return as of June 30, 2018
1 Year | 5 Year | Annualized Since Inception (3/4/10) | ||||||||||
Cullen International High Dividend Fund – Class R2 | -1.80 | % | 2.33 | % | 3.82 | % | ||||||
MSCI EAFE Index | 7.37 | % | 6.93 | % | 6.54 | % |
Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.cullenfunds.com.
The MSCI EAFE Index is an unmanaged index of common stocks in Europe, Australia, Asia and the Far East.
This chart assumes an initial gross investment of $10,000 made on 3/4/10 (commencement of operations). Returns shown include the reinvestment of all dividends but do not reflect the deduction of taxes that you may pay on fund distributions or redemption of shares.
8 | www.cullenfunds.com |
Cullen High Dividend Equity Fund – Retail Class | Fund Performance |
June 30, 2018 (Unaudited) |
Growth of $10,000 Investment
Average Annual Total Return as of June 30, 2018
Annualized Since | ||||||||||||||||
1 Year | 5 Year | 10 Year | Inception (8/1/03) | |||||||||||||
Cullen High Dividend Equity Fund – Retail Class | 4.61 | % | 9.13 | % | 7.63 | % | 8.04 | % | ||||||||
S&P 500® Index | 14.37 | % | 13.42 | % | 10.17 | % | 9.30 | % |
Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.cullenfunds.com.
The Standard & Poor’s 500® Stock Index (S&P 500®) is a capitalization-weighted index, representing the aggregate market value of the common equity of 500 large-capitalization stocks primarily traded on the New York Stock Exchange.
This chart assumes an initial gross investment of $10,000 made on 8/1/03 (commencement of operations). Returns shown include the reinvestment of all dividends but do not reflect the deduction of taxes that you may pay on fund distributions or redemption of shares.
Annual Report | June 30, 2018 | 9 |
Cullen High Dividend Equity Fund – Class C | Fund Performance |
June 30, 2018 (Unaudited) |
Growth of $10,000 Investment
Average Annual Total Return as of June 30, 2018
Annualized Since | ||||||||||||||||
1 Year | 5 Year | 10 Year | Inception (10/7/04) | |||||||||||||
Cullen High Dividend Equity Fund – Class C | 3.85 | % | 8.33 | % | 6.83 | % | 6.52 | % | ||||||||
S&P 500® Index | 14.37 | % | 13.42 | % | 10.17 | % | 8.84 | % |
Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.cullenfunds.com.
The Standard & Poor’s 500® Stock Index (S&P 500®) is a capitalization-weighted index, representing the aggregate market value of the common equity of 500 large-capitalization stocks primarily traded on the New York Stock Exchange.
This chart assumes an initial gross investment of $10,000 made on 10/7/04 (commencement of operations). Returns shown include the reinvestment of all dividends but do not reflect the deduction of taxes that you may pay on fund distributions or redemption of shares.
10 | www.cullenfunds.com |
Cullen High Dividend Equity Fund – Class I | Fund Performance |
June 30, 2018 (Unaudited) |
Growth of $1,000,000 Investment
Average Annual Total Return as of June 30, 2018
Annualized Since | ||||||||||||||||
1 Year | 5 Year | 10 Year | Inception (10/7/04) | |||||||||||||
Cullen High Dividend Equity Fund – Class I | 4.87 | % | 9.40 | % | 7.89 | % | 7.57 | % | ||||||||
S&P 500® Index | 14.37 | % | 13.42 | % | 10.17 | % | 8.84 | % |
Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.cullenfunds.com.
The Standard & Poor’s 500® Stock Index (S&P 500®) is a capitalization-weighted index, representing the aggregate market value of the common equity of 500 large-capitalization stocks primarily traded on the New York Stock Exchange.
This chart assumes an initial gross investment of $1,000,000 made on 10/7/04 (commencement of operations). Returns shown include the reinvestment of all dividends but do not reflect the deduction of taxes that you may pay on fund distributions or redemption of shares.
Annual Report | June 30, 2018 | 11 |
Cullen High Dividend Equity Fund – Class R1 | Fund Performance |
June 30, 2018 (Unaudited) |
Growth of $10,000 Investment
Average Annual Total Return as of June 30, 2018
1 Year | 5 Year | Annualized Since Inception (3/3/10) | ||||||||||
Cullen High Dividend Equity Fund – Class R1 | 4.09 | % | 8.59 | % | 10.02 | % | ||||||
S&P 500® Index | 14.37 | % | 13.42 | % | 13.60 | % |
Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.cullenfunds.com.
The Standard & Poor’s 500® Stock Index (S&P 500®) is a capitalization-weighted index, representing the aggregate market value of the common equity of 500 large-capitalization stocks primarily traded on the New York Stock Exchange.
This chart assumes an initial gross investment of $10,000 made on 3/3/10 (commencement of operations). Returns shown include the reinvestment of all dividends but do not reflect the deduction of taxes that you may pay on fund distributions or redemption of shares.
12 | www.cullenfunds.com |
Cullen High Dividend Equity Fund – Class R2 | Fund Performance |
June 30, 2018 (Unaudited) |
Growth of $10,000 Investment
Average Annual Total Return as of June 30, 2018
1 Year | 5 Year | Annualized Since Inception (3/4/10) | ||||||||||
Cullen High Dividend Equity Fund – Class R2 | 4.38 | % | 8.80 | % | 10.36 | % | ||||||
S&P 500® Index | 14.37 | % | 13.42 | % | 13.56 | % |
Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.cullenfunds.com.
The Standard & Poor’s 500® Stock Index (S&P 500®) is a capitalization-weighted index, representing the aggregate market value of the common equity of 500 large-capitalization stocks primarily traded on the New York Stock Exchange.
This chart assumes an initial gross investment of $10,000 made on 3/4/10 (commencement of operations). Returns shown include the reinvestment of all dividends but do not reflect the deduction of taxes that you may pay on fund distributions or redemption of shares.
Annual Report | June 30, 2018 | 13 |
Cullen Small Cap Value Fund – Retail Class | Fund Performance |
June 30, 2018 (Unaudited) |
Growth of $10,000 Investment
Average Annual Total Return as of June 30, 2018
1 Year | 5 Year | Annualized Since Inception (10/1/09) | ||||||||||
Cullen Small Cap Value Fund – Retail Class | 7.38 | % | 4.17 | % | 7.69 | % | ||||||
Russell 2500™ Value Index | 11.49 | % | 10.78 | % | 13.35 | % |
Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.cullenfunds.com.
The Russell 2500™ Value Index is an unmanaged market capitalization-weighted index based on the average weighted performance of 2,500 widely held common stocks.
This chart assumes an initial gross investment of $10,000 made on 10/1/09 (commencement of operations). Returns shown include the reinvestment of all dividends but do not reflect the deduction of taxes that you may pay on fund distributions or redemption of shares.
14 | www.cullenfunds.com |
Cullen Small Cap Value Fund – Class C | Fund Performance |
June 30, 2018 (Unaudited) |
Growth of $10,000 Investment
Average Annual Total Return as of June 30, 2018
1 Year | 5 Year | Annualized Since Inception (10/1/09) | ||||||||||
Cullen Small Cap Value Fund – Class C | 6.56 | % | 3.40 | % | 6.90 | % | ||||||
Russell 2500™ Value Index | 11.49 | % | 10.78 | % | 13.35 | % |
Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.cullenfunds.com.
The Russell 2500™ Value Index is an unmanaged market capitalization-weighted index based on the average weighted performance of 2,500 widely held common stocks.
This chart assumes an initial gross investment of $10,000 made on 10/1/09 (commencement of operations). Returns shown include the reinvestment of all dividends but do not reflect the deduction of taxes that you may pay on fund distributions or redemption of shares.
Annual Report | June 30, 2018 | 15 |
Cullen Small Cap Value Fund – Class I | Fund Performance |
June 30, 2018 (Unaudited) |
Growth of $1,000,000 Investment
Average Annual Total Return as of June 30, 2018
1 Year | 5 Year | Annualized Since Inception (10/1/09) | ||||||||||
Cullen Small Cap Value Fund – Class I | 7.62 | % | 4.38 | % | 7.93 | % | ||||||
Russell 2500™ Value Index | 11.49 | % | 10.78 | % | 13.35 | % |
Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.cullenfunds.com.
The Russell 2500™ Value Index is an unmanaged market capitalization-weighted index based on the average weighted performance of 2,500 widely held common stocks.
This chart assumes an initial gross investment of $1,000,000 made on 10/1/09 (commencement of operations). Returns shown include the reinvestment of all dividends but do not reflect the deduction of taxes that you may pay on fund distributions or redemption of shares.
16 | www.cullenfunds.com |
Cullen Value Fund – Retail Class | Fund Performance |
June 30, 2018 (Unaudited) |
Growth of $10,000 Investment
Average Annual Total Return as of June 30, 2018
1 Year | 5 Year | Annualized Since Inception (9/1/12) | ||||||||||
Cullen Value Fund – Retail Class | 7.97 | % | 10.23 | % | 11.11 | % | ||||||
S&P 500® Index | 14.37 | % | 13.42 | % | 14.33 | % |
Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.cullenfunds.com.
The Standard & Poor’s 500® Stock Index (S&P 500®) is a capitalization-weighted index, representing the aggregate market value of the common equity of 500 large-capitalization stocks primarily traded on the New York Stock Exchange.
This chart assumes an initial gross investment of $10,000 made on 9/1/12 (commencement of operations). Returns shown include the reinvestment of all dividends but do not reflect the deduction of taxes that you may pay on fund distributions or redemption of shares.
Annual Report | June 30, 2018 | 17 |
Cullen Value Fund – Class C | Fund Performance |
June 30, 2018 (Unaudited) |
Growth of $10,000 Investment
Average Annual Total Return as of June 30, 2018
1 Year | 5 Year | Annualized Since Inception (9/1/12) | ||||||||||
Cullen Value Fund – Class C | 7.25 | % | 9.41 | % | 10.29 | % | ||||||
S&P 500® Index | 14.37 | % | 13.42 | % | 14.33 | % |
Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.cullenfunds.com.
The Standard & Poor’s 500® Stock Index (S&P 500®) is a capitalization-weighted index, representing the aggregate market value of the common equity of 500 large-capitalization stocks primarily traded on the New York Stock Exchange.
This chart assumes an initial gross investment of $10,000 made on 9/1/12 (commencement of operations). Returns shown include the reinvestment of all dividends but do not reflect the deduction of taxes that you may pay on fund distributions or redemption of shares.
18 | www.cullenfunds.com |
Cullen Value Fund – Class I | Fund Performance |
June 30, 2018 (Unaudited) |
Growth of $1,000,000 Investment
Average Annual Total Return as of June 30, 2018
1 Year | 5 Year | Annualized Since Inception (9/1/12) | ||||||||||
Cullen Value Fund – Class I | 8.25 | % | 10.49 | % | 11.39 | % | ||||||
S&P 500® Index | 14.37 | % | 13.42 | % | 14.33 | % |
Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.cullenfunds.com.
The Standard & Poor’s 500® Stock Index (S&P 500®) is a capitalization-weighted index, representing the aggregate market value of the common equity of 500 large-capitalization stocks primarily traded on the New York Stock Exchange.
This chart assumes an initial gross investment of $1,000,000 made on 9/1/12 (commencement of operations). Returns shown include the reinvestment of all dividends but do not reflect the deduction of taxes that you may pay on fund distributions or redemption of shares.
Annual Report | June 30, 2018 | 19 |
Cullen Emerging Markets High | |
Dividend Fund – Retail Class | Fund Performance |
June 30, 2018 (Unaudited) |
Growth of $10,000 Investment
Average Annual Total Return as of June 30, 2018
1 Year | 5 Year | Annualized Since Inception (9/1/12) | ||||||||||
Cullen Emerging Markets High Dividend Fund – Retail Class | 2.48 | % | 3.29 | % | 3.95 | % | ||||||
MSCI Emerging Markets Index | 8.20 | % | 5.01 | % | 4.50 | % |
Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.cullenfunds.com.
The MSCI Emerging Markets Index is an unmanaged index of common stocks in global emerging economies.
This chart assumes an initial gross investment of $10,000 made on 9/1/12 (commencement of operations). Returns shown include the reinvestment of all dividends but do not reflect the deduction of taxes that you may pay on fund distributions or redemption of shares.
20 | www.cullenfunds.com |
Cullen Emerging Markets High | |
Dividend Fund – Class C | Fund Performance |
June 30, 2018 (Unaudited) |
Growth of $10,000 Investment
Average Annual Total Return as of June 30, 2018
1 Year | 5 Year | Annualized Since Inception (9/1/12) | ||||||||||
Cullen Emerging Markets High Dividend Fund – Class C | 1.71 | % | 2.51 | % | 3.16 | % | ||||||
MSCI Emerging Markets Index | 8.20 | % | 5.01 | % | 4.50 | % |
Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.cullenfunds.com.
The MSCI Emerging Markets Index is an unmanaged index of common stocks in global emerging economies.
This chart assumes an initial gross investment of $10,000 made on 9/1/12 (commencement of operations). Returns shown include the reinvestment of all dividends but do not reflect the deduction of taxes that you may pay on fund distributions or redemption of shares.
Annual Report | June 30, 2018 | 21 |
Cullen Emerging Markets High | |
Dividend Fund – Class I | Fund Performance |
June 30, 2018 (Unaudited) |
Growth of $1,000,000 Investment
Average Annual Total Return as of June 30, 2018
1 Year | 5 Year | Annualized Since Inception (9/1/12) | ||||||||||
Cullen Emerging Markets High Dividend Fund – Class I | 2.72 | % | 3.58 | % | 4.23 | % | ||||||
MSCI Emerging Markets Index | 8.20 | % | 5.01 | % | 4.50 | % |
Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.cullenfunds.com.
The MSCI Emerging Markets Index is an unmanaged index of common stocks in global emerging economies.
This chart assumes an initial gross investment of $1,000,000 made on 9/1/12 (commencement of operations). Returns shown include the reinvestment of all dividends but do not reflect the deduction of taxes that you may pay on fund distributions or redemption of shares.
22 | www.cullenfunds.com |
Cullen Enhanced Equity Income Fund – Retail Class | Fund Performance |
June 30, 2018 (Unaudited) |
Growth of $10,000 Investment
Average Annual Total Return as of June 30, 2018
1 Year | Total Since Inception (12/15/15) | |||||||
Cullen Enhanced Equity Income Fund – Retail Class | -0.51 | % | 6.51 | % | ||||
CBOE S&P 500 BuyWrite | 7.28 | % | 8.58 | % |
Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.cullenfunds.com.
This chart assumes an initial gross investment of $10,000 made on 12/15/15 (commencement of operations). Returns shown include the reinvestment of all dividends but do not reflect the deduction of taxes that you may pay on fund distributions or redemption of shares.
Annual Report | June 30, 2018 | 23 |
Cullen Enhanced Equity Income Fund – Class C | Fund Performance |
June 30, 2018 (Unaudited) |
Growth of $10,000 Investment
Average Annual Total Return as of June 30, 2018
1 Year | Total Since Inception (12/15/15) | |||||||
Cullen Enhanced Equity Income Fund – Class C | -1.17 | % | 5.73 | % | ||||
CBOE S&P 500 BuyWrite | 7.28 | % | 8.58 | % |
Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.cullenfunds.com.
This chart assumes an initial gross investment of $10,000 made on 12/15/15 (commencement of operations). Returns shown include the reinvestment of all dividends but do not reflect the deduction of taxes that you may pay on fund distributions or redemption of shares.
24 | www.cullenfunds.com |
Cullen Enhanced Equity Income Fund – Class I | Fund Performance |
June 30, 2018 (Unaudited) |
Growth of $1,000,000 Investment
Average Annual Total Return as of June 30, 2018
1 Year | Total Since Inception (12/15/15) | |||||||
Cullen Enhanced Equity Income Fund – Class I | -0.24 | % | 6.77 | % | ||||
CBOE S&P 500 BuyWrite | 7.28 | % | 8.58 | % |
Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the most recent month end may be obtained by visiting www.cullenfunds.com.
This chart assumes an initial gross investment of $1,000,000 made on 12/15/15 (commencement of operations). Returns shown include the reinvestment of all dividends but do not reflect the deduction of taxes that you may pay on fund distributions or redemption of shares.
Annual Report | June 30, 2018 | 25 |
Cullen Funds Trust | Disclosure of Fund Expenses |
June 30, 2018 (Unaudited) |
As a shareholder of the Funds, you may incur two types of costs: (1) transaction costs; redemption fees; and exchange fees; and (2) ongoing costs, including management fees; service fees; and other fund expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period from January 1, 2018 to June 30, 2018.
Actual Expenses
The first sets of lines of the tables below provide information about actual account values and actual expenses. Although the Funds charge no sales loads or transaction fees, you will be assessed fees for outgoing wire transfers, returned checks and stop payment orders at prevailing rates charged by the Funds’ transfer agent. If you request that redemption be made by wire transfer, currently a $15.00 fee is charged by the Funds’ transfer agent. You will be charged a 2% redemption fee if you redeem or exchange shares of the Funds within seven (7) days of purchase. IRA accounts will be charged a $15.00 annual maintenance fee. The examples below include, but are not limited to, management fees, shareholder servicing fees, fund accounting, custody and transfer agent fees. However, the examples below do not include portfolio trading commissions and related expenses. You may use the information within these lines, together with the amount you invested, to estimate the expenses that you paid over the six-month period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second set of lines within the tables below provide information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which is not the Funds’ actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual funds. Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs, redemption fees or exchange fees. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Expenses Paid | ||||||||||||||
Beginning | Ending | During Period | ||||||||||||
Net Expense | Account Value | Account Value | January 1, 2018 to | |||||||||||
Ratio(a) | January 1, 2018 | June 30, 2018 | June 30, 2018(b) | |||||||||||
Cullen International High Dividend Fund | ||||||||||||||
Retail | ||||||||||||||
Actual | 1.25% | $ | 1,000.00 | $ | 942.60 | $ | 6.02 | |||||||
Hypothetical (5% return before expenses) | 1.25% | $ | 1,000.00 | $ | 1,018.60 | $ | 6.26 | |||||||
Class C | ||||||||||||||
Actual | 2.00% | $ | 1,000.00 | $ | 938.70 | $ | 9.61 | |||||||
Hypothetical (5% return before expenses) | 2.00% | $ | 1,000.00 | $ | 1,014.88 | $ | 9.99 | |||||||
Class I | ||||||||||||||
Actual | 1.00% | $ | 1,000.00 | $ | 943.30 | $ | 4.82 | |||||||
Hypothetical (5% return before expenses) | 1.00% | $ | 1,000.00 | $ | 1,019.84 | $ | 5.01 | |||||||
Class R1 | ||||||||||||||
Actual | 1.71% | $ | 1,000.00 | $ | 940.60 | $ | 8.23 | |||||||
Hypothetical (5% return before expenses) | 1.71% | $ | 1,000.00 | $ | 1,016.31 | $ | 8.55 | |||||||
Class R2 | ||||||||||||||
Actual | 1.47% | $ | 1,000.00 | $ | 941.40 | $ | 7.08 | |||||||
Hypothetical (5% return before expenses) | 1.47% | $ | 1,000.00 | $ | 1,017.50 | $ | 7.35 |
26 | www.cullenfunds.com |
Cullen Funds Trust | Disclosure of Fund Expenses |
June 30, 2018 (Unaudited) |
Expenses Paid | ||||||||||||||
Beginning | Ending | During Period | ||||||||||||
Net Expense | Account Value | Account Value | January 1, 2018 to | |||||||||||
Ratio(a) | January 1, 2018 | June 30, 2018 | June 30, 2018(b) | |||||||||||
Cullen High Dividend Equity Fund | ||||||||||||||
Retail | ||||||||||||||
Actual | 1.00% | $ | 1,000.00 | $ | 971.30 | $ | 4.89 | |||||||
Hypothetical (5% return before expenses) | 1.00% | $ | 1,000.00 | $ | 1,019.84 | $ | 5.01 | |||||||
Class C | ||||||||||||||
Actual | 1.75% | $ | 1,000.00 | $ | 967.30 | $ | 8.54 | |||||||
Hypothetical (5% return before expenses) | 1.75% | $ | 1,000.00 | $ | 1,016.12 | $ | 8.75 | |||||||
Class I | ||||||||||||||
Actual | 0.75% | $ | 1,000.00 | $ | 972.00 | $ | 3.67 | |||||||
Hypothetical (5% return before expenses) | 0.75% | $ | 1,000.00 | $ | 1,021.08 | $ | 3.76 | |||||||
Class R1 | ||||||||||||||
Actual | 1.50% | $ | 1,000.00 | $ | 968.20 | $ | 7.32 | |||||||
Hypothetical (5% return before expenses) | 1.50% | $ | 1,000.00 | $ | 1,017.36 | $ | 7.50 | |||||||
Class R2 | ||||||||||||||
Actual | 1.25% | $ | 1,000.00 | $ | 969.40 | $ | 6.10 | |||||||
Hypothetical (5% return before expenses) | 1.25% | $ | 1,000.00 | $ | 1,018.60 | $ | 6.26 | |||||||
Cullen Small Cap Value Fund | ||||||||||||||
Retail | ||||||||||||||
Actual | 1.25% | $ | 1,000.00 | $ | 1,050.20 | $ | 6.35 | |||||||
Hypothetical (5% return before expenses) | 1.25% | $ | 1,000.00 | $ | 1,018.60 | $ | 6.26 | |||||||
Class C | ||||||||||||||
Actual | 2.00% | $ | 1,000.00 | $ | 1,045.60 | $ | 10.14 | |||||||
Hypothetical (5% return before expenses) | 2.00% | $ | 1,000.00 | $ | 1,014.88 | $ | 9.99 | |||||||
Class I | ||||||||||||||
Actual | 1.00% | $ | 1,000.00 | $ | 1,050.70 | $ | 5.08 | |||||||
Hypothetical (5% return before expenses) | 1.00% | $ | 1,000.00 | $ | 1,019.84 | $ | 5.01 | |||||||
Cullen Value Fund | ||||||||||||||
Retail | ||||||||||||||
Actual | 1.00% | $ | 1,000.00 | $ | 987.10 | $ | 4.93 | |||||||
Hypothetical (5% return before expenses) | 1.00% | $ | 1,000.00 | $ | 1,019.84 | $ | 5.01 | |||||||
Class C | ||||||||||||||
Actual | 1.75% | $ | 1,000.00 | $ | 984.10 | $ | 8.61 | |||||||
Hypothetical (5% return before expenses) | 1.75% | $ | 1,000.00 | $ | 1,016.12 | $ | 8.75 | |||||||
Class I | ||||||||||||||
Actual | 0.75% | $ | 1,000.00 | $ | 988.40 | $ | 3.70 | |||||||
Hypothetical (5% return before expenses) | 0.75% | $ | 1,000.00 | $ | 1,021.08 | $ | 3.76 |
Annual Report | June 30, 2018 | 27 |
Cullen Funds Trust | Disclosure of Fund Expenses |
June 30, 2018 (Unaudited) |
Expenses Paid | ||||||||||||||
Beginning | Ending | During Period | ||||||||||||
Net Expense | Account Value | Account Value | January 1, 2018 to | |||||||||||
Ratio(a) | January 1, 2018 | June 30, 2018 | June 30, 2018(b) | |||||||||||
Cullen Emerging Markets High Dividend Fund | ||||||||||||||
Retail | ||||||||||||||
Actual | 1.25% | $ | 1,000.00 | $ | 925.20 | $ | 5.97 | |||||||
Hypothetical (5% return before expenses) | 1.25% | $ | 1,000.00 | $ | 1,018.60 | $ | 6.26 | |||||||
Class C | ||||||||||||||
Actual | 2.00% | $ | 1,000.00 | $ | 921.60 | $ | 9.53 | |||||||
Hypothetical (5% return before expenses) | 2.00% | $ | 1,000.00 | $ | 1,014.88 | $ | 9.99 | |||||||
Class I | ||||||||||||||
Actual | 1.00% | $ | 1,000.00 | $ | 925.90 | $ | 4.78 | |||||||
Hypothetical (5% return before expenses) | 1.00% | $ | 1,000.00 | $ | 1,019.84 | $ | 5.01 | |||||||
Cullen Enhanced Equity Income Fund | ||||||||||||||
Retail | ||||||||||||||
Actual | 1.00% | $ | 1,000.00 | $ | 958.40 | $ | 4.86 | |||||||
Hypothetical (5% return before expenses) | 1.00% | $ | 1,000.00 | $ | 1,019.84 | $ | 5.01 | |||||||
Class C | ||||||||||||||
Actual | 1.75% | $ | 1,000.00 | $ | 954.60 | $ | 8.48 | |||||||
Hypothetical (5% return before expenses) | 1.75% | $ | 1,000.00 | $ | 1,016.12 | $ | 8.75 | |||||||
Class I | ||||||||||||||
Actual | 0.75% | $ | 1,000.00 | $ | 959.40 | $ | 3.64 | |||||||
Hypothetical (5% return before expenses) | 0.75% | $ | 1,000.00 | $ | 1,021.08 | $ | 3.76 |
(a) | Annualized, based on the Fund's most recent fiscal half year expenses. Such figures do not reflect acquired fund fees and expenses. |
(b) | Expenses are equal to the Fund's annualized expense ratio multiplied by the average account value over the period, multiplied by the number of days in the most recent fiscal half year (181), divided by 365. Expenses in the examples include the effect of applicable fee waivers and/or expense reimbursements, if any. Had such waivers and/or reimbursements not been in effect, your expenses would have been higher. Please refer to the Notes to Financial Statements or the Fund's prospectuses for more information regarding waivers and/or reimbursements. |
28 | www.cullenfunds.com |
Cullen International High Dividend Fund | Schedule of Investments |
June 30, 2018 |
Value | ||||||||
Shares | (Note 2) | |||||||
COMMON STOCKS - 90.26% | ||||||||
Australia - 3.08% | ||||||||
Sonic Healthcare Ltd. | 419,650 | $ | 7,612,485 | |||||
Canada - 5.22% | ||||||||
BCE, Inc. | 59,835 | 2,422,719 | ||||||
Manulife Financial Corp. | 259,970 | 4,671,661 | ||||||
Vermilion Energy, Inc. | 160,872 | 5,801,500 | ||||||
12,895,880 | ||||||||
China - 2.90% | ||||||||
China Petroleum & Chemical Corp., Class H | 8,005,800 | 7,166,131 | ||||||
France - 7.04% | ||||||||
BNP Paribas SA | 43,375 | 2,683,046 | ||||||
Cie Generale des Etablissements Michelin SCA | 34,565 | 4,181,610 | ||||||
Engie SA | 90,950 | 1,391,218 | ||||||
Sanofi | 21,050 | 1,689,464 | ||||||
TOTAL SA - Sponsored ADR | 122,985 | 7,447,972 | ||||||
17,393,310 | ||||||||
Germany - 10.48% | ||||||||
Allianz SE | 28,840 | 5,942,622 | ||||||
Daimler AG | 55,116 | 3,530,574 | ||||||
Deutsche Telekom AG | 178,620 | 2,760,468 | ||||||
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen | 19,607 | 4,122,235 | ||||||
ProSiebenSat.1 Media SE | 110,930 | 2,807,086 | ||||||
Siemens AG | 51,190 | 6,744,586 | ||||||
25,907,571 | ||||||||
Hong Kong - 2.16% | ||||||||
BOC Hong Kong Holdings Ltd. | 1,133,950 | 5,329,494 | ||||||
Indonesia - 0.03% | ||||||||
Telekomunikasi Indonesia Persero Tbk PT | 320,000 | 83,806 | ||||||
Ireland - 2.77% | ||||||||
Smurfit Kappa Group PLC | 169,520 | 6,843,732 | ||||||
Japan - 4.18% | ||||||||
Honda Motor Co. Ltd. | 220,900 | 6,477,005 | ||||||
Nippon Telegraph & Telephone Corp. | 85,130 | 3,867,287 | ||||||
10,344,292 | ||||||||
Netherlands - 5.74% | ||||||||
ING Groep NV | 253,000 | 3,631,697 | ||||||
NN Group NV | 149,715 | 6,071,908 | ||||||
Unilever NV | 80,565 | 4,489,082 | ||||||
14,192,687 |
Value | ||||||||
Shares | (Note 2) | |||||||
Norway - 0.38% | ||||||||
Orkla ASA | 107,405 | $ | 939,674 | |||||
Russia - 1.85% | ||||||||
MMC Norilsk Nickel PJSC - ADR | 254,075 | 4,580,972 | ||||||
Singapore - 3.75% | ||||||||
Singapore Telecommunications Ltd. | 469,000 | 1,058,907 | ||||||
United Overseas Bank Ltd. | 419,500 | 8,221,669 | ||||||
9,280,576 | ||||||||
Sweden - 1.40% | ||||||||
Investor AB, Class B | 85,350 | 3,457,240 | ||||||
Switzerland - 11.64% | ||||||||
ABB Ltd. - Sponsored ADR | 224,367 | 4,884,470 | ||||||
Nestle SA | 49,940 | 3,870,392 | ||||||
Novartis AG - Sponsored ADR | 98,325 | 7,427,471 | ||||||
Roche Holding AG | 12,000 | 2,662,298 | ||||||
UBS Group AG | 313,465 | 4,805,532 | ||||||
Zurich Insurance Group AG | 17,322 | 5,122,636 | ||||||
28,772,799 | ||||||||
Taiwan - 2.46% | ||||||||
ASE Industrial Holding Co. Ltd. | 2,593,500 | 6,090,644 | ||||||
United Kingdom - 25.18% | ||||||||
AstraZeneca PLC - Sponsored ADR | 105,085 | 3,689,534 | ||||||
BAE Systems PLC | 698,635 | 5,943,510 | ||||||
British American Tobacco PLC - Sponsored ADR | 91,834 | 4,633,025 | ||||||
Diageo PLC | 159,600 | 5,733,779 | ||||||
GlaxoSmithKline PLC | 338,840 | 6,831,340 | ||||||
HSBC Holdings PLC | 664,833 | 6,220,185 | ||||||
Imperial Brands PLC | 135,060 | 5,015,879 | ||||||
Lloyds Banking Group PLC | 6,034,500 | 5,006,936 | ||||||
Royal Dutch Shell PLC, Class B | 227,015 | 8,130,095 | ||||||
Smiths Group PLC | 334,250 | 7,466,300 | ||||||
SSE PLC | 15,200 | 271,329 | ||||||
Vodafone Group PLC - Sponsored ADR | 136,060 | 3,307,619 | ||||||
62,249,531 | ||||||||
TOTAL COMMON STOCKS (Cost $190,948,338) | 223,140,824 | |||||||
PREFERRED STOCK - 2.09% | ||||||||
Brazil - 2.09% | ||||||||
Telefonica Brasil SA | 436,440 | 5,163,071 | ||||||
TOTAL PREFERRED STOCK (Cost $6,481,383) | 5,163,071 |
See Notes to Financial Statements. | |
Annual Report | June 30, 2018 | 29 |
Cullen International High Dividend Fund | Schedule of Investments |
June 30, 2018 |
Value | ||||
(Note 2) | ||||
TOTAL INVESTMENTS 92.35% (Cost $197,429,721) | $ | 228,303,895 | ||
Other Assets In Excess Of Liabilities 7.65% | 18,927,626 | |||
NET ASSETS 100.00% | $ | 247,231,521 |
Sector | % of Net | Value | ||||||
Diversification | �� | Assets | (Note 2) | |||||
COMMON STOCKS | ||||||||
Financials | 26.42 | % | $ | 65,286,861 | ||||
Health Care | 12.10 | 29,912,592 | ||||||
Energy | 11.55 | 28,545,698 | ||||||
Industrials | 10.13 | 25,038,866 | ||||||
Consumer Staples | 9.98 | 24,681,831 | ||||||
Consumer Discretionary | 6.87 | 16,996,275 | ||||||
Telecommunication Services | 5.46 | 13,500,806 | ||||||
Materials | 4.62 | 11,424,704 | ||||||
Information Technology | 2.46 | 6,090,644 | ||||||
Utilities | 0.67 | 1,662,547 | ||||||
TOTAL COMMON STOCKS | 90.26 | 223,140,824 | ||||||
PREFERRED STOCK | ||||||||
Telecommunication Services | 2.09 | 5,163,071 | ||||||
TOTAL PREFERRED STOCK | 2.09 | 5,163,071 | ||||||
TOTAL INVESTMENTS | 92.35 | % | $ | 228,303,895 | ||||
Other Assets In Excess Of Liabilities | 7.65 | 18,927,626 | ||||||
TOTAL NET ASSETS | 100.00 | % | $ | 247,231,521 |
Percentages are stated as a percent of net assets.
See Notes to Financial Statements. | |
30 | www.cullenfunds.com |
Cullen High Dividend Equity Fund | Schedule of Investments |
June 30, 2018 |
Value | ||||||||
Shares | (Note 2) | |||||||
COMMON STOCKS - 89.43% | ||||||||
Aerospace & Defense - 4.01% | ||||||||
Boeing Co. | 60,100 | $ | 20,164,151 | |||||
Raytheon Co. | 247,400 | 47,792,732 | ||||||
67,956,883 | ||||||||
Banks - 2.68% | ||||||||
SunTrust Banks, Inc. | 688,000 | 45,421,760 | ||||||
Chemicals - 3.16% | ||||||||
DowDuPont, Inc. | 811,360 | 53,484,851 | ||||||
Communications Equipment - 5.28% | ||||||||
Cisco Systems, Inc. | 1,175,110 | 50,564,983 | ||||||
Corning, Inc. | 1,413,415 | 38,883,047 | ||||||
89,448,030 | ||||||||
Distillers & Vintners - 2.74% | ||||||||
Diageo PLC - Sponsored ADR | 322,900 | 46,500,829 | ||||||
Distributors - 3.24% | ||||||||
Genuine Parts Co. | 598,890 | 54,972,113 | ||||||
Diversified Banks - 8.08% | ||||||||
HSBC Holdings PLC - Sponsored ADR | 837,600 | 39,484,464 | ||||||
JPMorgan Chase & Co. | 507,960 | 52,929,432 | ||||||
Wells Fargo & Co. | 801,000 | 44,407,440 | ||||||
136,821,336 | ||||||||
Electric Utilities - 3.37% | ||||||||
NextEra Energy, Inc. | 341,300 | 57,007,339 | ||||||
Food & Staples Retailing - 1.49% | ||||||||
Walgreens Boots Alliance, Inc. | 421,100 | 25,272,316 | ||||||
Household Products - 4.98% | ||||||||
Kimberly-Clark Corp. | 320,835 | 33,796,759 | ||||||
Unilever NV | 907,194 | 50,548,850 | ||||||
84,345,609 | ||||||||
Industrial Conglomerates - 2.59% | ||||||||
3M Co. | 222,730 | 43,815,446 | ||||||
Integrated Oil & Gas - 10.83% | ||||||||
Chevron Corp. | 420,480 | 53,161,286 | ||||||
ConocoPhillips | 787,900 | 54,853,598 | ||||||
Exxon Mobil Corp. | 345,450 | 28,579,079 | ||||||
Royal Dutch Shell PLC, - Class B, Sponsored ADR | 644,600 | 46,830,190 | ||||||
183,424,153 | ||||||||
Integrated Telecommunication Services - 2.57% | ||||||||
AT&T, Inc. | 1,356,850 | 43,568,453 |
Value | ||||||||
Shares | (Note 2) | |||||||
Life & Health Insurance - 1.97% | ||||||||
MetLife, Inc. | 766,400 | $ | 33,415,040 | |||||
Pharmaceuticals - 15.14% | ||||||||
AstraZeneca PLC - Sponsored ADR | 1,113,385 | 39,090,947 | ||||||
Eli Lilly & Co. | 406,485 | 34,685,365 | ||||||
Johnson & Johnson | 398,680 | 48,375,831 | ||||||
Merck & Co., Inc. | 747,450 | 45,370,215 | ||||||
Novartis AG - Sponsored ADR | 576,446 | 43,544,731 | ||||||
Pfizer, Inc. | 1,253,000 | 45,458,840 | ||||||
256,525,929 | ||||||||
Property & Casualty Insurance - 5.54% | ||||||||
Chubb Ltd. | 379,025 | 48,143,755 | ||||||
Travelers Cos., Inc. | 373,920 | 45,745,373 | ||||||
93,889,128 | ||||||||
Semiconductors - 1.70% | ||||||||
Intel Corp. | 577,900 | 28,727,409 | ||||||
Specialized REITs - 3.21% | ||||||||
Welltower, Inc. | 868,050 | 54,418,055 | ||||||
Systems Software - 2.77% | ||||||||
Microsoft Corp. | 475,570 | 46,895,958 | ||||||
Tobacco - 4.08% | ||||||||
Altria Group, Inc. | 680,450 | 38,642,756 | ||||||
Philip Morris International, Inc. | 376,719 | 30,416,292 | ||||||
69,059,048 | ||||||||
TOTAL COMMON STOCKS (Cost $874,322,330) | 1,514,969,685 | |||||||
EXCHANGE-TRADED FUNDS - 6.87% | ||||||||
Financial Select Sector SPDR® Fund | 653,085 | 17,365,530 | ||||||
Industrial Select Sector SPDR® Fund | 699,940 | 50,136,702 | ||||||
iShares® US Telecommunications ETF | 1,774,580 | 48,925,171 | ||||||
116,427,403 | ||||||||
TOTAL EXCHANGE-TRADED FUNDS (Cost $116,923,734) | 116,427,403 | |||||||
TOTAL INVESTMENTS 96.30% (Cost $991,246,064) | $ | 1,631,397,088 | ||||||
Other Assets In Excess Of Liabilities 3.70% | 62,647,932 | |||||||
NET ASSETS 100.00% | $ | 1,694,045,020 |
See Notes to Financial Statements. | |
Annual Report | June 30, 2018 | 31 |
Cullen High Dividend Equity Fund | Schedule of Investments |
June 30, 2018 |
Sector | % of Net | Value | ||||||
Diversification | Assets | (Note 2) | ||||||
COMMON STOCKS | ||||||||
Financials | 18.27 | % | $ | 309,547,264 | ||||
Health Care | 15.14 | 256,525,929 | ||||||
Consumer Staples | 13.29 | 225,177,802 | ||||||
Energy | 10.83 | 183,424,153 | ||||||
Information Technology | 9.75 | 165,071,397 | ||||||
Industrials | 6.60 | 111,772,329 | ||||||
Utilities | 3.37 | 57,007,339 | ||||||
Consumer Discretionary | 3.24 | 54,972,113 | ||||||
Real Estate | 3.21 | 54,418,055 | ||||||
Materials | 3.16 | 53,484,851 | ||||||
Telecommunication Services | 2.57 | 43,568,453 | ||||||
TOTAL COMMON STOCKS | 89.43 | 1,514,969,685 | ||||||
EXCHANGE-TRADED FUNDS | ||||||||
Industrials | 2.96 | 50,136,702 | ||||||
Telecommunication Services | 2.88 | 48,925,171 | ||||||
Financials | 1.03 | 17,365,530 | ||||||
TOTAL EXCHANGE-TRADED FUNDS | 6.87 | 116,427,403 | ||||||
TOTAL INVESTMENTS | 96.30 | % | $ | 1,631,397,088 | ||||
Other Assets In Excess Of Liabilities | 3.70 | 62,647,932 | ||||||
TOTAL NET ASSETS | 100.00 | % | $ | 1,694,045,020 |
Percentages are stated as a percent of net assets.
See Notes to Financial Statements. | |
32 | www.cullenfunds.com |
Cullen Small Cap Value Fund | Schedule of Investments |
June 30, 2018 |
Value | ||||||||
Shares | (Note 2) | |||||||
COMMON STOCKS - 90.24% | ||||||||
Airlines - 2.72% | ||||||||
Copa Holdings SA, Class A | 1,200 | $ | 113,544 | |||||
Apparel - 3.50% | ||||||||
Carter's, Inc. | 1,350 | 146,326 | ||||||
Auto Parts & Equipment - 2.87% | ||||||||
Motorcar Parts of America, Inc.(a) | 6,410 | 119,931 | ||||||
Commercial Services - 4.08% | ||||||||
Robert Half International, Inc. | 2,620 | 170,562 | ||||||
Communications - 4.45% | ||||||||
Mitel Networks Corp.(a) | 16,960 | 186,051 | ||||||
Computer Hardware - 2.07% | ||||||||
Avnet, Inc. | 2,020 | 86,638 | ||||||
Construction & Engineering - 3.85% | ||||||||
Quanta Services, Inc.(a) | 4,820 | 160,988 | ||||||
Construction Materials - 1.12% | ||||||||
Loma Negra Cia Industrial Argentina SA - Sponsored ADR(a) | 4,565 | 46,837 | ||||||
Electronic Equipment & Instruments - 9.15% | ||||||||
Babcock & Wilcox Enterprises, Inc.(a) | 45,828 | 109,071 | ||||||
Orbotech Ltd.(a) | 2,240 | 138,432 | ||||||
VeriFone Systems, Inc.(a) | 5,910 | 134,866 | ||||||
382,369 | ||||||||
Environmental & Facilities Services - 3.59% | ||||||||
Team, Inc.(a) | 6,500 | 150,150 | ||||||
Gold - 2.41% | ||||||||
Tahoe Resources, Inc. | 20,500 | 100,860 | ||||||
Healthcare-Services - 7.47% | ||||||||
Brookdale Senior Living, Inc.(a) | 8,050 | 73,174 | ||||||
Capital Senior Living Corp.(a) | 8,450 | 90,162 | ||||||
Ensign Group, Inc. | 4,150 | 148,653 | ||||||
311,989 | ||||||||
Household Products/Wares - 3.23% | ||||||||
Helen of Troy Ltd.(a) | 1,370 | 134,877 | ||||||
Insurance - 7.96% | ||||||||
Assured Guaranty Ltd. | 3,615 | 129,164 | ||||||
Brighthouse Financial, Inc.(a) | 1,285 | 51,490 | ||||||
United Insurance Holdings Corp. | 7,760 | 151,941 | ||||||
332,595 |
Value | ||||||||
Shares | (Note 2) | |||||||
Machinery-Diversified - 2.76% | ||||||||
AGCO Corp. | 1,900 | $ | 115,368 | |||||
Media - 2.76% | ||||||||
AMC Networks, Inc., Class A(a) | 1,855 | 115,381 | ||||||
Oil & Gas Exploration & Production - 4.01% | ||||||||
Cimarex Energy Co. | 1,645 | 167,362 | ||||||
Oil & Gas Services - 1.52% | ||||||||
Oceaneering International, Inc. | 2,500 | 63,650 | ||||||
Regional Banks - 10.35% | ||||||||
Bank of the Ozarks | 2,300 | 103,592 | ||||||
CVB Financial Corp. | 2,950 | 66,139 | ||||||
First Bancorp/Southern Pines, NC | 3,400 | 139,094 | ||||||
National Bank Holdings Corp., Class A | 3,200 | 123,488 | ||||||
432,313 | ||||||||
Savings & Loans - 3.76% | ||||||||
United Community Financial Corp. | 14,280 | 156,937 | ||||||
Software - 2.94% | ||||||||
Verint Systems, Inc.(a) | 2,770 | 122,850 | ||||||
Technology - 3.67% | ||||||||
Quality Systems, Inc.(a) | 7,875 | 153,562 | ||||||
TOTAL COMMON STOCKS (Cost $3,095,816) | 3,771,140 | |||||||
TOTAL INVESTMENTS 90.24% (Cost $3,095,816) | $ | 3,771,140 | ||||||
Other Assets In Excess Of Liabilities 9.76% | 407,884 | |||||||
NET ASSETS 100.00% | $ | 4,179,024 |
(a) | Non-Income Producing Security. |
See Notes to Financial Statements. | |
Annual Report | June 30, 2018 | 33 |
Cullen Small Cap Value Fund | Schedule of Investments |
June 30, 2018 |
Sector | % of Net | Value | ||||||
Diversification | Assets | (Note 2) | ||||||
COMMON STOCKS | ||||||||
Financials | 22.07 | % | $ | 921,845 | ||||
Industrials | 19.61 | 819,683 | ||||||
Information Technology | 16.00 | 668,837 | ||||||
Consumer Discretionary | 12.36 | 516,515 | ||||||
Health Care | 11.14 | 465,551 | ||||||
Energy | 5.53 | 231,012 | ||||||
Materials | 3.53 | 147,697 | ||||||
TOTAL COMMON STOCKS | 90.24 | 3,771,140 | ||||||
TOTAL INVESTMENTS | 90.24 | % | $ | 3,771,140 | ||||
Other Assets In Excess Of Liabilities | 9.76 | 407,884 | ||||||
TOTAL NET ASSETS | 100.00 | % | $ | 4,179,024 |
Percentages are stated as a percent of net assets.
See Notes to Financial Statements. | |
34 | www.cullenfunds.com |
Cullen Value Fund | Schedule of Investments |
June 30, 2018 |
Value | ||||||||
Shares | (Note 2) | |||||||
COMMON STOCKS - 94.32% | ||||||||
Aerospace & Defense - 5.21% | ||||||||
Boeing Co. | 3,025 | $ | 1,014,918 | |||||
Raytheon Co. | 4,475 | 864,480 | ||||||
1,879,398 | ||||||||
Agriculture - 1.96% | ||||||||
Archer-Daniels-Midland Co. | 15,450 | 708,073 | ||||||
Auto Parts & Equipment - 1.27% | ||||||||
Adient PLC | 987 | 48,551 | ||||||
BorgWarner, Inc. | 9,500 | 410,020 | ||||||
458,571 | ||||||||
Communications Equipment - 3.89% | ||||||||
Cisco Systems, Inc. | 32,600 | 1,402,778 | ||||||
Diversified Banks - 9.77% | ||||||||
Citigroup, Inc. | 17,100 | 1,144,332 | ||||||
JPMorgan Chase & Co. | 12,600 | 1,312,920 | ||||||
Wells Fargo & Co. | 19,200 | 1,064,448 | ||||||
3,521,700 | ||||||||
Electronics - 2.42% | ||||||||
Arrow Electronics, Inc.(a) | 11,600 | 873,248 | ||||||
Food Products - 3.00% | ||||||||
Mondelez International, Inc., Class A | 26,375 | 1,081,375 | ||||||
Gold - 2.43% | ||||||||
Newmont Mining Corp. | 23,200 | 874,872 | ||||||
Health Care Equipment - 2.77% | ||||||||
Medtronic PLC | 11,660 | 998,213 | ||||||
Heavy Electrical Equipment - 1.83% | ||||||||
ABB Ltd. - Sponsored ADR | 30,350 | 660,719 | ||||||
Household Products - 2.01% | ||||||||
Unilever NV | 12,990 | 723,803 | ||||||
Industrial Conglomerates - 2.46% | ||||||||
3M Co. | 4,500 | 885,240 | ||||||
Insurance - 0.14% | ||||||||
Brighthouse Financial, Inc.(a) | 1,225 | 49,086 | ||||||
Integrated Oil & Gas - 6.21% | ||||||||
Chevron Corp. | 9,750 | 1,232,692 | ||||||
ConocoPhillips | 14,450 | 1,006,009 | ||||||
2,238,701 |
Value | ||||||||
Shares | (Note 2) | |||||||
Integrated Telecommunication Services - 1.93% | ||||||||
AT&T, Inc. | 21,700 | $ | 696,787 | |||||
Investment Banking & Brokerage - 2.00% | ||||||||
Morgan Stanley | 15,200 | 720,480 | ||||||
Life & Health Insurance - 1.63% | ||||||||
MetLife, Inc. | 13,480 | 587,728 | ||||||
Life Sciences Tools & Services - 2.59% | ||||||||
Thermo Fisher Scientific, Inc. | 4,500 | 932,130 | ||||||
Managed Health Care - 3.69% | ||||||||
Aetna, Inc. | 7,250 | 1,330,375 | ||||||
Miscellaneous Manufacturing - 3.05% | ||||||||
Siemens AG - Sponsored ADR | 16,700 | 1,100,280 | ||||||
Movies & Entertainment - 2.01% | ||||||||
Walt Disney Co. | 6,900 | 723,189 | ||||||
Oil & Gas Equipment & Services - 2.01% | ||||||||
Halliburton Co. | 16,050 | 723,213 | ||||||
Oil & Gas Exploration & Production - 1.20% | ||||||||
Devon Energy Corp. | 9,875 | 434,105 | ||||||
Pharmaceuticals - 11.15% | ||||||||
GlaxoSmithKline PLC - Sponsored ADR | 13,800 | 556,278 | ||||||
Johnson & Johnson | 5,915 | 717,726 | ||||||
Mallinckrodt PLC(a) | 1,477 | 27,561 | ||||||
Merck & Co., Inc. | 15,150 | 919,605 | ||||||
Novartis AG - Sponsored ADR | 9,600 | 725,184 | ||||||
Pfizer, Inc. | 29,550 | 1,072,074 | ||||||
4,018,428 | ||||||||
Property & Casualty Insurance - 7.96% | ||||||||
Allstate Corp. | 8,600 | 784,922 | ||||||
Chubb Ltd. | 8,306 | 1,055,028 | ||||||
Travelers Cos., Inc. | 8,400 | 1,027,656 | ||||||
2,867,606 | ||||||||
Regional Banks - 2.92% | ||||||||
BB&T Corp. | 20,850 | 1,051,674 | ||||||
Systems Software - 6.81% | ||||||||
Microsoft Corp. | 15,850 | 1,562,968 | ||||||
Oracle Corp. | 20,200 | 890,012 | ||||||
2,452,980 | ||||||||
TOTAL COMMON STOCKS (Cost $22,212,982) | 33,994,752 |
See Notes to Financial Statements. | |
Annual Report | June 30, 2018 | 35 |
Cullen Value Fund | Schedule of Investments |
June 30, 2018 |
Value | ||||
(Note 2) | ||||
TOTAL INVESTMENTS 94.32% (Cost $22,212,982) | $ | 33,994,752 | ||
Other Assets In Excess Of Liabilities 5.68% | 2,047,740 | |||
NET ASSETS 100.00% | $ | 36,042,492 |
(a) | Non-Income Producing Security. |
Sector | % of Net | Value | ||||||
Diversification | Assets | (Note 2) | ||||||
COMMON STOCKS | ||||||||
Financials | 24.42 | % | $ | 8,798,274 | ||||
Health Care | 20.20 | 7,279,146 | ||||||
Information Technology | 13.12 | 4,729,006 | ||||||
Industrials | 12.55 | 4,525,637 | ||||||
Energy | 9.42 | 3,396,019 | ||||||
Consumer Staples | 6.97 | 2,513,251 | ||||||
Consumer Discretionary | 3.28 | 1,181,760 | ||||||
Materials | 2.43 | 874,872 | ||||||
Telecommunication Services | 1.93 | 696,787 | ||||||
TOTAL COMMON STOCKS | 94.32 | 33,994,752 | ||||||
TOTAL INVESTMENTS | 94.32 | % | $ | 33,994,752 | ||||
Other Assets In Excess Of Liabilities | 5.68 | 2,047,740 | ||||||
TOTAL NET ASSETS | 100.00 | % | $ | 36,042,492 |
Percentages are stated as a percent of net assets.
See Notes to Financial Statements. | |
36 | www.cullenfunds.com |
Cullen Emerging Markets High Dividend Fund | Schedule of Investments |
June 30, 2018 |
Value | ||||||||
Shares | (Note 2) | |||||||
COMMON STOCKS - 82.82% | ||||||||
Austria - 1.11% | ||||||||
Erste Group Bank AG | 108,950 | $ | 4,542,118 | |||||
Brazil - 5.70% | ||||||||
AES Tiete Energia SA | 1,399,962 | 3,503,743 | ||||||
Ambev SA - ADR | 268,000 | 1,240,840 | ||||||
Telefonica Brasil SA - ADR | 530,010 | 6,291,218 | ||||||
Vale SA - Sponsored ADR | 964,300 | 12,362,326 | ||||||
23,398,127 | ||||||||
Chile - 1.30% | ||||||||
Vina Concha y Toro SA | 2,597,067 | 5,346,008 | ||||||
China - 5.98% | ||||||||
China Construction Bank Corp., Class H | 11,608,300 | 10,622,076 | ||||||
China Petroleum & Chemical Corp., Class H | 12,378,000 | 11,079,763 | ||||||
Great Wall Motor Co. Ltd., Class H | 3,731,500 | 2,840,107 | ||||||
24,541,946 | ||||||||
Greece - 2.10% | ||||||||
OPAP SA | 765,200 | 8,627,581 | ||||||
Hong Kong - 20.57% | ||||||||
AIA Group Ltd. | 1,520,000 | 13,241,345 | ||||||
BOC Aviation Ltd.(a)(b) | 1,228,020 | 7,620,518 | ||||||
China Everbright Ltd. | 2,680,800 | 4,904,795 | ||||||
China Mobile Ltd. - Sponsored ADR | 11,150 | 494,949 | ||||||
IGG, Inc. | 6,640,000 | 8,451,358 | ||||||
Nine Dragons Paper Holdings Ltd. | 6,650,000 | 8,437,584 | ||||||
Sands China Ltd. | 1,647,000 | 8,780,796 | ||||||
Times China Holdings Ltd. | 7,730,000 | 11,410,480 | ||||||
Value Partners Group Ltd. | 8,266,450 | 6,499,834 | ||||||
WH Group Ltd.(a)(b) | 4,008,000 | 3,243,220 | ||||||
Xinyi Glass Holdings Ltd. | 8,156,000 | 9,892,767 | ||||||
Xtep International Holdings Ltd. | 2,087,500 | 1,425,470 | ||||||
84,403,116 | ||||||||
Hungary - 0.17% | ||||||||
Magyar Telekom Telecommunications PLC | 501,250 | 712,867 | ||||||
India - 1.90% | ||||||||
ICICI Bank Ltd. - Sponsored ADR | 724,950 | 5,821,348 | ||||||
RHT Health Trust | 3,452,200 | 1,963,637 | ||||||
7,784,985 | ||||||||
Indonesia - 3.44% | ||||||||
Bank Rakyat Indonesia Persero Tbk PT | 25,732,500 | 5,089,655 | ||||||
Gudang Garam Tbk PT | 468,300 | 2,194,259 | ||||||
Indo Tambangraya Megah Tbk PT | 4,206,800 | 6,561,470 |
Value | ||||||||
Shares | (Note 2) | |||||||
Indonesia (continued) | ||||||||
Telekomunikasi Indonesia Persero Tbk PT | 1,075,000 | $ | 281,537 | |||||
14,126,921 | ||||||||
Mexico - 1.54% | ||||||||
PLA Administradora Industrial S de RL de CV | 4,618,264 | 6,301,781 | ||||||
Russia - 7.67% | ||||||||
Globaltrans Investment PLC - Sponsored GDR(a) | 913,337 | 9,316,037 | ||||||
LUKOIL PJSC - Sponsored ADR | 206,000 | 14,199,580 | ||||||
MMC Norilsk Nickel PJSC - ADR | 441,400 | 7,958,442 | ||||||
31,474,059 | ||||||||
Singapore - 0.79% | ||||||||
Ascendas India Trust | 4,373,900 | 3,242,304 | ||||||
South Africa - 3.70% | ||||||||
Mondi Ltd. | 434,700 | 11,774,524 | ||||||
Remgro Ltd. | 229,510 | 3,410,197 | ||||||
15,184,721 | ||||||||
South Korea - 12.92% | ||||||||
Doosan Bobcat, Inc. | 160,975 | 4,622,364 | ||||||
Hanon Systems | 618,374 | 5,882,135 | ||||||
ING Life Insurance Korea Ltd.(a)(b) | 180,500 | 6,776,376 | ||||||
KT&G Corp. | 50,950 | 4,895,527 | ||||||
LG Chem Ltd. | 25,050 | 7,497,678 | ||||||
Macquarie Korea Infrastructure Fund | 565,230 | 4,544,155 | ||||||
Samsung Electronics Co. Ltd. | 298,500 | 12,504,040 | ||||||
SK Telecom Co. Ltd. | 30,150 | 6,301,638 | ||||||
53,023,913 | ||||||||
Taiwan - 12.14% | ||||||||
Accton Technology Corp. | 1,410,000 | 4,065,709 | ||||||
ASE Industrial Holding Co. Ltd. | 3,739,428 | 8,781,772 | ||||||
Asian Pay Television Trust | 13,110,000 | 3,896,061 | ||||||
CTCI Corp. | 1,506,000 | 2,409,115 | ||||||
King Yuan Electronics Co. Ltd. | 6,500,000 | 5,909,328 | ||||||
Powertech Technology, Inc. | 2,905,000 | 8,420,341 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. - Sponsored ADR | 325,760 | 11,909,786 | ||||||
Win Semiconductors Corp. | 350,649 | 2,510,867 | ||||||
Wistron NeWeb Corp. | 799,002 | 1,902,425 | ||||||
49,805,404 | ||||||||
Thailand - 0.64% | ||||||||
Major Cineplex Group PCL | 3,522,200 | 2,613,959 | ||||||
Turkey - 0.83% | ||||||||
Tupras Turkiye Petrol Rafinerileri AS | 144,200 | 3,399,132 |
See Notes to Financial Statements. | |
Annual Report | June 30, 2018 | 37 |
Cullen Emerging Markets High Dividend Fund | Schedule of Investments |
June 30, 2018 |
Value | ||||||||
Shares | (Note 2) | |||||||
Vietnam - 0.32% | ||||||||
Saigon Securities, Inc. | 1,042,500 | $ | 1,288,088 | |||||
TOTAL COMMON STOCKS (Cost $316,404,312) | 339,817,030 | |||||||
PARTICIPATORY NOTES - 10.95% | ||||||||
China - 5.23% | ||||||||
Huayu Automotive Systems Co. Ltd. (Issued by CLSA Global Markets Pte. Ltd.), Expires 11/13/2019 | 1,266,842 | 4,528,879 | ||||||
Midea Group Co. Ltd. (Issued by CLSA Global Markets Pte. Ltd.), Expires 06/05/2023 | 973,767 | 7,652,239 | ||||||
Qingdao Haier Co. Ltd. (Issued by Morgan Stanley), Expires 01/04/2019 | 2,975,800 | 8,623,327 | ||||||
Zhengzhou Yutong Bus Co. Ltd. (Issued by CLSA Global Markets Pte. Ltd.), Expires 10/10/2022 | 226,906 | 657,451 | ||||||
21,461,896 | ||||||||
India - 5.72% | ||||||||
BSE Ltd. (Issued by CLSA Global Markets Pte. Ltd.), Expires 05/24/2023 | 376,400 | 4,613,037 | ||||||
Indiabulls Housing Finance Ltd. (Issued by CLSA Global Markets Pte. Ltd.), Expires 01/30/2020 | 679,966 | 11,369,076 | ||||||
Power Grid Corp of India Ltd. (Issued by CLSA Global Markets Pte. Ltd.), Expires 11/27/2019 | 2,734,108 | 7,459,676 | ||||||
23,441,789 | ||||||||
TOTAL PARTICIPATORY NOTES (Cost $41,671,519) | 44,903,685 | |||||||
TOTAL INVESTMENTS 93.77% (Cost $358,075,831) | $ | 384,720,715 | ||||||
Other Assets In Excess Of Liabilities 6.23% | 25,567,646 | |||||||
NET ASSETS 100.00% | $ | 410,288,361 |
(a) | Securities were originally issued pursuant to Regulation S under the Securities Act of 1933, which exempts securities offered and sold outside of the United States from registration. Such securities cannot be sold in the United States without either an effective registration statement filed pursuant to the Securities Act of 1933, or pursuant to an exemption from registration. As of June 30, 2018, the aggregate value of those securities was $26,956,151, which represents 6.57% of net assets. |
(b) | Security exempt from registration of the Securities Act of 1933. These securities may be resold in transactions exempt from registration under Rule 144A, normally to qualified institutional buyers. As of June 30, 2018 the aggregate value of those securities was $17,640,114, which represents 4.30% of net assets. |
See Notes to Financial Statements. | |
38 | www.cullenfunds.com |
Cullen Emerging Markets High Dividend Fund | Schedule of Investments |
June 30, 2018 |
Sector | % of Net | Value | ||||||
Diversification | Assets | (Note 2) | ||||||
COMMON STOCKS | ||||||||
Financials | 16.27 | % | $ | 66,739,987 | ||||
Information Technology | 15.71 | 64,455,626 | ||||||
Materials | 14.12 | 57,923,321 | ||||||
Energy | 8.59 | 35,239,945 | ||||||
Consumer Discretionary | 8.30 | 34,066,109 | ||||||
Industrials | 5.85 | 23,968,034 | ||||||
Real Estate | 5.11 | 20,954,565 | ||||||
Consumer Staples | 4.11 | 16,919,854 | ||||||
Telecommunication Services | 3.42 | 14,082,209 | ||||||
Utilities | 0.86 | 3,503,743 | ||||||
Health Care | 0.48 | 1,963,637 | ||||||
TOTAL COMMON STOCKS | 82.82 | 339,817,030 | ||||||
PARTICIPATORY NOTES | ||||||||
Consumer Discretionary | 3.97 | 16,275,566 | ||||||
Financials | 3.90 | 15,982,113 | ||||||
Utilities | 1.82 | 7,459,676 | ||||||
Industrials | 1.26 | 5,186,330 | ||||||
TOTAL PARTICIPATORY NOTES | 10.95 | 44,903,685 | ||||||
TOTAL INVESTMENTS | 93.77 | % | $ | 384,720,715 | ||||
Other Assets In Excess Of Liabilities | 6.23 | 25,567,646 | ||||||
TOTAL NET ASSETS | 100.00 | % | $ | 410,288,361 |
Percentages are stated as a percent of net assets.
See Notes to Financial Statements. | |
Annual Report | June 30, 2018 | 39 |
Cullen Enhanced Equity Income Fund | Schedule of Investments |
June 30, 2018 |
Value | ||||||||
Shares | (Note 2) | |||||||
COMMON STOCKS - 95.58% | ||||||||
Agriculture - 2.47% | ||||||||
Archer-Daniels-Midland Co.(a) | 25,150 | $ | 1,152,625 | |||||
Auto Parts & Equipment - 2.02% | ||||||||
Johnson Controls International PLC | 28,170 | 942,287 | ||||||
Banks - 2.79% | ||||||||
SunTrust Banks, Inc.(a) | 19,720 | 1,301,914 | ||||||
Chemicals - 2.89% | ||||||||
DowDuPont, Inc.(a) | 20,500 | 1,351,360 | ||||||
Communications Equipment - 5.80% | ||||||||
Cisco Systems, Inc. | 31,560 | 1,358,027 | ||||||
Corning, Inc. | 49,040 | 1,349,090 | ||||||
2,707,117 | ||||||||
Distributors - 2.88% | ||||||||
Genuine Parts Co.(a) | 14,680 | 1,347,477 | ||||||
Diversified Banks - 7.37% | ||||||||
HSBC Holdings PLC - Sponsored ADR(a) | 17,110 | 806,565 | ||||||
JPMorgan Chase & Co.(a) | 10,720 | 1,117,024 | ||||||
Wells Fargo & Co. | 27,350 | 1,516,284 | ||||||
3,439,873 | ||||||||
Electric - 3.22% | ||||||||
PPL Corp. | 52,620 | 1,502,301 | ||||||
Electric Utilities - 2.17% | ||||||||
Duke Energy Corp.(a) | 12,800 | 1,012,224 | ||||||
Electrical Components & Equipment - 2.86% | ||||||||
Eaton Corp. PLC | 17,850 | 1,334,109 | ||||||
Food & Staples Retailing - 2.18% | ||||||||
Walgreens Boots Alliance, Inc.(a) | 17,000 | 1,020,255 | ||||||
Household Products - 4.81% | ||||||||
Kimberly-Clark Corp.(a) | 12,600 | 1,327,284 | ||||||
Unilever NV | 16,460 | 917,151 | ||||||
2,244,435 | ||||||||
Industrial Conglomerates - 1.33% | ||||||||
Honeywell International, Inc.(a) | 4,300 | 619,415 | ||||||
Integrated Oil & Gas - 10.25% | ||||||||
Chevron Corp.(a) | 9,580 | 1,211,200 | ||||||
ConocoPhillips | 14,160 | 985,819 | ||||||
Exxon Mobil Corp. | 17,170 | 1,420,474 |
Value | ||||||||
Shares | (Note 2) | |||||||
Integrated Oil & Gas (continued) | ||||||||
Royal Dutch Shell PLC, - Class B, Sponsored ADR | 16,080 | $ | 1,168,212 | |||||
4,785,705 | ||||||||
Integrated Telecommunication Services - 2.84% | ||||||||
AT&T, Inc. | 41,350 | 1,327,749 | ||||||
Life & Health Insurance - 2.28% | ||||||||
MetLife, Inc. | 24,430 | 1,065,148 | ||||||
Pharmaceuticals - 15.84% | ||||||||
AstraZeneca PLC - Sponsored ADR | 31,520 | 1,106,667 | ||||||
Johnson & Johnson | 10,950 | 1,328,673 | ||||||
Merck & Co., Inc.(a) | 23,020 | 1,397,314 | ||||||
Novartis AG - Sponsored ADR | 17,010 | 1,284,935 | ||||||
Novo Nordisk A/S - Sponsored ADR | 18,540 | 855,065 | ||||||
Pfizer, Inc.(a) | 39,300 | 1,425,804 | ||||||
7,398,458 | ||||||||
Property & Casualty Insurance - 5.00% | ||||||||
Chubb Ltd. | 8,430 | 1,070,779 | ||||||
Travelers Cos., Inc. | 10,330 | 1,263,772 | ||||||
2,334,551 | ||||||||
Semiconductors - 2.27% | ||||||||
Intel Corp.(a) | 21,370 | 1,062,303 | ||||||
Specialized REITs - 5.93% | ||||||||
HCP, Inc. | 48,630 | 1,255,627 | ||||||
Welltower, Inc.(a) | 24,170 | 1,515,217 | ||||||
2,770,844 | ||||||||
Telecommunications - 3.51% | ||||||||
Verizon Communications, Inc. | 32,620 | 1,641,112 | ||||||
Tobacco - 4.87% | ||||||||
Altria Group, Inc. | 19,980 | 1,134,664 | ||||||
Philip Morris International, Inc. | 14,140 | 1,141,664 | ||||||
2,276,328 | ||||||||
TOTAL COMMON STOCKS (Cost $46,379,216) | 44,637,590 | |||||||
TOTAL INVESTMENTS 95.58% (Cost $46,379,216) | $ | 44,637,590 | ||||||
Other Assets In Excess Of Liabilities 4.42% | 2,062,226 | |||||||
NET ASSETS 100.00% | $ | 46,699,816 |
See Notes to Financial Statements. | |
40 | www.cullenfunds.com |
Cullen Enhanced Equity Income Fund | Schedule of Investments |
June 30, 2018 |
SCHEDULE OF WRITTEN | Notional | Number of | ||||||||||
OPTIONS | Amount | Contracts | Value | |||||||||
CALL OPTIONS WRITTEN (0.28%) | ||||||||||||
Archer-Daniels-Midland Co., Expires July, 2018, Exercise Price $46.50 | $ | (1,150,333 | ) | (251 | ) | $ | (14,056 | ) | ||||
Chevron Corp., Expires July, 2018, Exercise Price $129.00 | (1,201,085 | ) | (95 | ) | (13,585 | ) | ||||||
DowDuPont, Inc., Expires July, 2018, Exercise Price $69.00 | (678,976 | ) | (103 | ) | (6,283 | ) | ||||||
Duke Energy Corp., Expires July, 2018, Exercise Price $80.00 | (506,112 | ) | (64 | ) | (4,800 | ) | ||||||
Genuine Parts Co., Expires July, 2018, Exercise Price $95.00 | (679,246 | ) | (74 | ) | (7,030 | ) | ||||||
Honeywell International, Inc., Expires July, 2018, Exercise Price $155.00 | (619,415 | ) | (43 | ) | (817 | ) | ||||||
HSBC Holdings PLC - Sponsored ADR, Expires July, 2018, Exercise Price $50.00 | (405,404 | ) | (86 | ) | (172 | ) | ||||||
Intel Corp., Expires July, 2018, Exercise Price $55.50 | (1,058,823 | ) | (213 | ) | (852 | ) | ||||||
JPMorgan Chase & Co., Expires July, 2018, Exercise Price $111.00 | (562,680 | ) | (54 | ) | (2,160 | ) | ||||||
Kimberly-Clark Corp., Expires July, 2018, Exercise Price $105.00 | (790,050 | ) | (75 | ) | (20,250 | ) |
SCHEDULE OF WRITTEN | Notional | Number of | ||||||||||
OPTIONS | Amount | Contracts | Value | |||||||||
CALL OPTIONS WRITTEN (continued) | ||||||||||||
Merck & Co., Inc., Expires July, 2018, Exercise Price $63.00 | $ | (1,396,100 | ) | (230 | ) | $ | (6,900 | ) | ||||
Pfizer, Inc., Expires July, 2018, Exercise Price $37.00 | (1,425,804 | ) | (393 | ) | (7,860 | ) | ||||||
SunTrust Banks, Inc., Expires July, 2018, Exercise Price $70.00 | (1,300,594 | ) | (197 | ) | (9,062 | ) | ||||||
Walgreens Boots Alliance, Inc., Expires July, 2018, Exercise Price $69.00 | (510,128 | ) | (85 | ) | (425 | ) | ||||||
Welltower, Inc., Expires July, 2018, Exercise Price $60.00 | (758,549 | ) | (121 | ) | (38,720 | ) | ||||||
TOTAL CALL OPTIONS WRITTEN (Premiums received $152,138) | (132,972 | ) | ||||||||||
TOTAL WRITTEN OPTIONS (Premiums received $152,138) | $ | (132,972 | ) |
(a) | Pledged security; a portion or all of the security is pledged as collateral for written options as of June 30, 2018. |
See Notes to Financial Statements. | |
Annual Report | June 30, 2018 | 41 |
Cullen Enhanced Equity Income Fund | Schedule of Investments |
June 30, 2018 |
Sector | % of Net | Value | ||||||
Diversification | Assets | (Note 2) | ||||||
COMMON STOCKS | ||||||||
Financials | 17.44 | % | $ | 8,141,486 | ||||
Health Care | 15.84 | 7,398,458 | ||||||
Consumer Staples | 14.33 | 6,693,643 | ||||||
Energy | 10.25 | 4,785,705 | ||||||
Information Technology | 8.07 | 3,769,420 | ||||||
Telecommunication Services | 6.35 | 2,968,861 | ||||||
Industrials | 6.21 | 2,895,811 | ||||||
Real Estate | 5.93 | 2,770,844 | ||||||
Utilities | 5.39 | 2,514,525 | ||||||
Materials | 2.89 | 1,351,360 | ||||||
Consumer Discretionary | 2.88 | 1,347,477 | ||||||
TOTAL COMMON STOCKS | 95.58 | 44,637,590 | ||||||
TOTAL INVESTMENTS | 95.58 | % | $ | 44,637,590 | ||||
Other Assets In Excess Of Liabilities | 4.42 | 2,062,226 | ||||||
TOTAL NET ASSETS | 100.00 | % | $ | 46,699,816 | ||||
CALL OPTIONS WRITTEN | ||||||||
Information Technology | 0.00 | % | $ | (852 | ) | |||
Industrials | 0.00 | (817 | ) | |||||
Utilities | (0.01 | ) | (4,800 | ) | ||||
Materials | (0.01 | ) | (6,283 | ) | ||||
Consumer Discretionary | (0.02 | ) | (7,030 | ) | ||||
Financials | (0.02 | ) | (11,394 | ) | ||||
Energy | (0.03 | ) | (13,585 | ) | ||||
Health Care | (0.04 | ) | (14,760 | ) | ||||
Consumer Staples | (0.07 | ) | (34,731 | ) | ||||
Real Estate | (0.08 | ) | (38,720 | ) | ||||
TOTAL CALL OPTIONS WRITTEN | (0.28 | ) | (132,972 | ) |
Percentages are stated as a percent of net assets.
See Notes to Financial Statements. | |
42 | www.cullenfunds.com |
Cullen Funds Trust | Statements of Assets and Liabilities |
June 30, 2018 |
Cullen | ||||||||||||||||||||||||
Cullen | Emerging | Cullen | ||||||||||||||||||||||
International | Markets | Enhanced | ||||||||||||||||||||||
High | Cullen High | Cullen Small | High | Equity | ||||||||||||||||||||
Dividend | Dividend | Cap Value | Cullen Value | Dividend | Income | |||||||||||||||||||
Fund | Equity Fund | Fund | Fund | Fund | Fund | |||||||||||||||||||
ASSETS: | ||||||||||||||||||||||||
Investments, at value | $ | 228,303,895 | $ | 1,631,397,088 | $ | 3,771,140 | $ | 33,994,752 | $ | 384,720,715 | $ | 44,637,590 | ||||||||||||
Cash | 12,340,231 | 9,758,854 | 435,513 | 2,058,928 | 22,976,443 | 1,344,028 | ||||||||||||||||||
Foreign currencies, at value (Cost $2,289,042, –, –, –, $3,578,299 and –, respectively) | 2,286,299 | – | – | – | 3,580,032 | – | ||||||||||||||||||
Receivable for investments sold | 1,269,245 | 175,984,854 | – | – | 2,922,818 | 6,679 | ||||||||||||||||||
Receivable for fund shares sold | 1,955,143 | 1,282,510 | 17 | 25 | 512,455 | 795,696 | ||||||||||||||||||
Dividends receivable | 2,321,040 | 4,193,941 | 527 | 39,047 | 1,968,273 | 115,618 | ||||||||||||||||||
Receivable due from Investment Advisor | – | – | 29,826 | 11,365 | – | 9,548 | ||||||||||||||||||
Prepaid expenses and other assets | 24,372 | 20,455 | 7,475 | 5,601 | 7,012 | 13,625 | ||||||||||||||||||
Total Assets | 248,500,225 | 1,822,637,702 | 4,244,498 | 36,109,718 | 416,687,748 | 46,922,784 | ||||||||||||||||||
LIABILITIES: | ||||||||||||||||||||||||
Written options, at value (Premiums received –, –, –, –, – and $152,138, respectively) | – | – | – | – | – | 132,972 | ||||||||||||||||||
Payable to Investment Advisor | 147,650 | 941,418 | – | – | 248,912 | – | ||||||||||||||||||
Payable for investments purchased | 701,417 | 126,512,276 | – | – | 5,502,694 | – | ||||||||||||||||||
Payable for shares redeemed | 262,357 | 806,318 | – | – | 306,986 | 9,212 | ||||||||||||||||||
Distribution fees payable | 4,656 | 96,236 | 135 | 289 | 5,301 | 4,616 | ||||||||||||||||||
Trustees' fees and expenses payable | 20,000 | 20,000 | 20,000 | 20,000 | 20,000 | 20,000 | ||||||||||||||||||
Accrued expenses and other liabilities | 132,624 | 216,434 | 45,339 | 46,937 | 315,494 | 56,168 | ||||||||||||||||||
Total Liabilities | 1,268,704 | 128,592,682 | 65,474 | 67,226 | 6,399,387 | 222,968 | ||||||||||||||||||
NET ASSETS | $ | 247,231,521 | $ | 1,694,045,020 | $ | 4,179,024 | $ | 36,042,492 | $ | 410,288,361 | $ | 46,699,816 | ||||||||||||
NET ASSETS CONSIST OF | ||||||||||||||||||||||||
Paid-in capital | $ | 246,283,810 | $ | 928,469,853 | $ | 3,295,045 | $ | 24,542,035 | $ | 414,122,959 | $ | 49,600,189 | ||||||||||||
Undistributed net investment income/(loss) | 1,056,863 | – | – | 27,845 | (1,464,215 | ) | – | |||||||||||||||||
Accumulated net realized gain/(loss) | (30,914,100 | ) | 125,414,068 | 208,655 | (309,158 | ) | (28,987,795 | ) | (1,177,913 | ) | ||||||||||||||
Net unrealized appreciation/(depreciation) | 30,804,948 | 640,161,099 | 675,324 | 11,781,770 | 26,617,412 | (1,722,460 | ) | |||||||||||||||||
NET ASSETS | $ | 247,231,521 | $ | 1,694,045,020 | $ | 4,179,024 | $ | 36,042,492 | $ | 410,288,361 | $ | 46,699,816 | ||||||||||||
INVESTMENTS, AT COST | $ | 197,429,721 | $ | 991,246,064 | $ | 3,095,816 | $ | 22,212,982 | $ | 358,075,831 | $ | 46,379,216 |
See Notes to Financial Statements. | |
Annual Report | June 30, 2018 | 43 |
Cullen Funds Trust | Statements of Assets and Liabilities |
June 30, 2018 |
Cullen | ||||||||||||||||||||||||
Cullen | Emerging | Cullen | ||||||||||||||||||||||
International | Markets | Enhanced | ||||||||||||||||||||||
High | Cullen High | Cullen Small | High | Equity | ||||||||||||||||||||
Dividend | Dividend | Cap Value | Cullen Value | Dividend | Income | |||||||||||||||||||
Fund | Equity Fund | Fund | Fund | Fund | Fund | |||||||||||||||||||
PRICING OF SHARES | ||||||||||||||||||||||||
Retail: | ||||||||||||||||||||||||
Net Asset Value, offering and redemption price per share | $ | 9.88 | $ | 17.68 | $ | 12.35 | $ | 15.35 | $ | 10.55 | $ | 9.87 | ||||||||||||
Net Assets | $ | 9,761,491 | $ | 203,508,723 | $ | 440,110 | $ | 626,329 | $ | 14,748,912 | $ | 2,063,973 | ||||||||||||
Shares issued (unlimited number of beneficial interest authorized, $0.001 par value) | 988,058 | 11,509,071 | 35,646 | 40,794 | 1,398,198 | 209,133 | ||||||||||||||||||
Class C: | ||||||||||||||||||||||||
Net Asset Value, offering and redemption price per share | $ | 9.85 | $ | 17.50 | $ | 11.46 | $ | 15.34 | $ | 10.45 | $ | 9.89 | ||||||||||||
Net Assets | $ | 3,046,902 | $ | 62,291,181 | $ | 55,287 | $ | 202,787 | $ | 2,411,958 | $ | 4,961,068 | ||||||||||||
Shares issued (unlimited number of beneficial interest authorized, $0.001 par value) | 309,247 | 3,559,745 | 4,825 | 13,222 | 230,874 | 501,706 | ||||||||||||||||||
Class I: | ||||||||||||||||||||||||
Net Asset Value, offering and redemption price per share | $ | 9.95 | $ | 17.69 | $ | 12.63 | $ | 15.34 | $ | 10.61 | $ | 9.92 | ||||||||||||
Net Assets | $ | 234,350,182 | $ | 1,426,691,595 | $ | 3,683,627 | $ | 35,213,376 | $ | 393,127,491 | $ | 39,674,775 | ||||||||||||
Shares issued (unlimited number of beneficial interest authorized, $0.001 par value) | 23,543,182 | 80,644,974 | 291,662 | 2,295,030 | 37,045,219 | 3,999,124 | ||||||||||||||||||
Class R1: | ||||||||||||||||||||||||
Net Asset Value, offering and redemption price per share | $ | 11.49 | $ | 15.35 | N/A | N/A | N/A | N/A | ||||||||||||||||
Net Assets | $ | 11,268 | $ | 374,053 | N/A | N/A | N/A | N/A | ||||||||||||||||
Shares issued (unlimited number of beneficial interest authorized, $0.001 par value) | 981 | 24,369 | N/A | N/A | N/A | N/A | ||||||||||||||||||
Class R2: | ||||||||||||||||||||||||
Net Asset Value, offering and redemption price per share | $ | 11.38 | $ | 15.55 | N/A | N/A | N/A | N/A | ||||||||||||||||
Net Assets | $ | 61,678 | $ | 1,179,468 | N/A | N/A | N/A | N/A | ||||||||||||||||
Shares issued (unlimited number of beneficial interest authorized, $0.001 par value) | 5,420 | 75,859 | N/A | N/A | N/A | N/A |
See Notes to Financial Statements. | |
44 | www.cullenfunds.com |
Cullen Funds Trust | Statements of Operations |
Year Ended June 30, 2018 |
Cullen | ||||||||||||||||||||||||
Cullen | Emerging | Cullen | ||||||||||||||||||||||
International | Markets | Enhanced | ||||||||||||||||||||||
High | Cullen High | Cullen Small | High | Equity | ||||||||||||||||||||
Dividend | Dividend | Cap Value | Cullen Value | Dividend | Income | |||||||||||||||||||
Fund | Equity Fund | Fund | Fund | Fund | Fund | |||||||||||||||||||
INVESTMENT INCOME | ||||||||||||||||||||||||
Dividends* | $ | 9,613,304 | $ | 55,059,565 | $ | 26,748 | $ | 780,474 | $ | 16,058,177 | $ | 1,200,973 | ||||||||||||
Total Investment Income | 9,613,304 | 55,059,565 | 26,748 | 780,474 | 16,058,177 | 1,200,973 | ||||||||||||||||||
EXPENSES | ||||||||||||||||||||||||
Investment advisory fees (Note 6) | 2,551,223 | 18,158,946 | 39,097 | 344,265 | 3,816,263 | 372,207 | ||||||||||||||||||
Administrative fees | 82,946 | 474,397 | 4,864 | 12,486 | 119,517 | 14,077 | ||||||||||||||||||
Distribution fees (Note 7) | ||||||||||||||||||||||||
Retail | 43,318 | 635,343 | 1,179 | 1,604 | 41,944 | 6,343 | ||||||||||||||||||
Class C | 31,533 | 758,390 | 547 | 4,149 | 28,195 | 45,162 | ||||||||||||||||||
Class R1 | 312 | 2,313 | N/A | N/A | N/A | N/A | ||||||||||||||||||
Class R2 | 291 | 4,040 | N/A | N/A | N/A | N/A | ||||||||||||||||||
Shareholder services fees (Note 8) | ||||||||||||||||||||||||
Class R2 | N/A | 4,040 | N/A | N/A | N/A | N/A | ||||||||||||||||||
Registration and filing fees | 71,105 | 88,808 | 45,807 | 42,838 | 51,589 | 45,876 | ||||||||||||||||||
Custody fees | 112,246 | 140,506 | 2,756 | 4,017 | 620,293 | 12,651 | ||||||||||||||||||
Transfer agent fees | 75,858 | 253,999 | 40,663 | 41,014 | 55,060 | 46,038 | ||||||||||||||||||
Legal fees | 39,210 | 39,210 | 39,210 | 39,210 | 39,210 | 39,368 | ||||||||||||||||||
Professional fees | 56,925 | 51,070 | 49,556 | 49,556 | 49,556 | 52,360 | ||||||||||||||||||
Shareholder reports | 15,099 | 105,266 | 380 | 1,056 | 18,369 | 2,135 | ||||||||||||||||||
Trustees' fees | 80,000 | 80,000 | 80,000 | 80,000 | 80,000 | 80,000 | ||||||||||||||||||
Other expenses | 15,519 | 70,021 | 2,944 | 3,957 | 19,783 | 7,390 | ||||||||||||||||||
Total Expenses | 3,175,585 | 20,866,349 | 307,003 | 624,152 | 4,939,779 | 723,607 | ||||||||||||||||||
Less expenses reimbursed from Investment Advisor (Note 6) | ||||||||||||||||||||||||
Retail | (36,440 | ) | (817,204 | ) | (31,934 | ) | (6,697 | ) | (46,120 | ) | (26,674 | ) | ||||||||||||
Class C | (6,769 | ) | (244,321 | ) | (3,710 | ) | (4,271 | ) | (7,770 | ) | (47,424 | ) | ||||||||||||
Class I | (505,336 | ) | (4,779,308 | ) | (230,527 | ) | (349,176 | ) | (997,088 | ) | (318,314 | ) | ||||||||||||
Class R1 | N/A | (326 | ) | N/A | N/A | N/A | N/A | |||||||||||||||||
Class R2 | N/A | (5,196 | ) | N/A | N/A | N/A | N/A | |||||||||||||||||
Net Expenses | 2,627,040 | 15,019,994 | 40,832 | 264,008 | 3,888,801 | 331,195 | ||||||||||||||||||
Net Investment Income/(Loss) | 6,986,264 | 40,039,571 | (14,084 | ) | 516,466 | 12,169,376 | 869,778 | |||||||||||||||||
Net realized gain/(loss) on: | ||||||||||||||||||||||||
Investments | 1,335,336 | 170,435,224 | 301,162 | 446,328 | 12,280,035 | (496,842 | ) | |||||||||||||||||
Written options | – | – | – | – | – | 1,061,227 | ||||||||||||||||||
Foreign currency related transactions | (188,515 | ) | 41,919 | – | – | (40,428 | ) | – | ||||||||||||||||
Total Net Realized Gain/(Loss) | 1,146,821 | 170,477,143 | 301,162 | 446,328 | 12,239,607 | 564,385 | ||||||||||||||||||
Net change in unrealized appreciation/(depreciation) on: | ||||||||||||||||||||||||
Investments | (12,155,973 | ) | (120,909,522 | ) | 4,075 | 1,625,574 | (22,851,950 | ) | (2,047,364 | ) | ||||||||||||||
Written options | – | – | – | – | – | 32,545 | ||||||||||||||||||
Foreign currency related transactions | (37,139 | ) | (2,181 | ) | – | – | (47,889 | ) | – | |||||||||||||||
Total net change in unrealized appreciation/(depreciation) | (12,193,112 | ) | (120,911,703 | ) | 4,075 | 1,625,574 | (22,899,839 | ) | (2,014,819 | ) | ||||||||||||||
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS | (11,046,291 | ) | 49,565,440 | 305,237 | 2,071,902 | (10,660,232 | ) | (1,450,434 | ) | |||||||||||||||
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | (4,060,027 | ) | $ | 89,605,011 | $ | 291,153 | $ | 2,588,368 | $ | 1,509,144 | $ | (580,656 | ) | ||||||||||
*Foreign taxes withheld on dividends | $ | 870,357 | $ | 1,078,837 | $ | – | $ | 18,895 | $ | 1,526,791 | $ | 14,040 |
See Notes to Financial Statements. | |
Annual Report | June 30, 2018 | 45 |
Cullen Funds Trust | Statements of Changes in Net Assets |
Cullen International High Dividend Fund | Cullen High Dividend Equity Fund | |||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
June 30, 2018 | June 30, 2017 | June 30, 2018 | June 30, 2017 | |||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 6,986,264 | $ | 5,919,547 | $ | 40,039,571 | $ | 46,064,239 | ||||||||
Net realized gain | 1,146,821 | 671,064 | 170,477,143 | 121,521,318 | ||||||||||||
Net change in unrealized appreciation/(depreciation) | (12,193,112 | ) | 17,847,581 | (120,911,703 | ) | 40,352,251 | ||||||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations | (4,060,027 | ) | 24,438,192 | 89,605,011 | 207,937,808 | |||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||
From net investment income | ||||||||||||||||
Retail | (511,930 | ) | (959,374 | ) | (4,927,369 | ) | (7,541,436 | ) | ||||||||
Class C | (56,009 | ) | (53,365 | ) | (1,052,736 | ) | (1,456,474 | ) | ||||||||
Class I | (6,314,206 | ) | (4,880,817 | ) | (33,221,409 | ) | (37,072,063 | ) | ||||||||
Class R1 | (982 | ) | (1,068 | ) | (8,403 | ) | (56,880 | ) | ||||||||
Class R2 | (2,199 | ) | (2,160 | ) | (29,419 | ) | (80,815 | ) | ||||||||
From net realized gains | ||||||||||||||||
Retail | – | – | (18,454,538 | ) | (8,799,104 | ) | ||||||||||
Class C | – | – | (5,871,235 | ) | (2,404,755 | ) | ||||||||||
Class I | – | – | (115,085,551 | ) | (39,462,095 | ) | ||||||||||
Class R1 | – | – | (39,602 | ) | (101,450 | ) | ||||||||||
Class R2 | – | – | (122,119 | ) | (108,437 | ) | ||||||||||
Net Decrease in Net Assets from Distributions | (6,885,326 | ) | (5,896,784 | ) | (178,812,381 | ) | (97,083,509 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS (NOTE 3) | ||||||||||||||||
Shares sold | ||||||||||||||||
Retail | 3,213,208 | 15,437,844 | 16,687,745 | 56,447,621 | ||||||||||||
Class C | 951,828 | 1,001,993 | 3,295,329 | 5,645,182 | ||||||||||||
Class I | 100,382,650 | 78,871,966 | 294,091,447 | 222,060,093 | ||||||||||||
Class R1 | 5,009 | 1,043 | 40,838 | 385,826 | ||||||||||||
Class R2 | 4,185 | 9,859 | 102,115 | 441,509 | ||||||||||||
Dividends reinvested | ||||||||||||||||
Retail | 505,605 | 906,342 | 22,887,873 | 15,290,813 | ||||||||||||
Class C | 46,065 | 44,416 | 6,695,165 | 3,681,125 | ||||||||||||
Class I | 3,954,563 | 2,832,343 | 103,588,356 | 51,102,285 | ||||||||||||
Class R1 | 982 | 1,068 | 48,005 | 158,330 | ||||||||||||
Class R2 | 2,199 | 2,160 | 151,537 | 189,252 | ||||||||||||
Shares redeemed | ||||||||||||||||
Retail | (35,297,145 | ) | (12,695,555 | ) | (166,491,258 | ) | (88,440,115 | ) | ||||||||
Class C | (721,282 | ) | (1,681,663 | ) | (31,552,469 | ) | (21,908,360 | ) | ||||||||
Class I | (53,412,664 | ) | (96,585,525 | ) | (299,640,635 | ) | (458,484,455 | ) | ||||||||
Class R1 | (61,134 | ) | (1,616 | ) | (182,813 | ) | (3,145,812 | ) | ||||||||
Class R2 | (64,280 | ) | (68,601 | ) | (2,605,994 | ) | (879,869 | ) | ||||||||
Redemption fees | ||||||||||||||||
Retail | 32 | 52 | 1,021 | 4,449 | ||||||||||||
Class C | 128 | – | 4 | 120 | ||||||||||||
Class I | 179 | 278 | 417 | 1,403 | ||||||||||||
Class R1 | – | – | – | – | ||||||||||||
Class R2 | – | – | 6 | 3 | ||||||||||||
Net Increase/(Decrease) in Net Assets Derived from Capital Share Transactions | 19,510,128 | (11,923,596 | ) | (52,883,311 | ) | (217,450,600 | ) | |||||||||
Net Increase/(Decrease) in Net Assets | 8,564,775 | 6,617,812 | (142,090,681 | ) | (106,596,301 | ) | ||||||||||
NET ASSETS | ||||||||||||||||
Beginning of year | 238,666,746 | 232,048,934 | 1,836,135,701 | 1,942,732,002 | ||||||||||||
End of year * | $ | 247,231,521 | $ | 238,666,746 | $ | 1,694,045,020 | $ | 1,836,135,701 | ||||||||
*Includes undistributed net investment income of: | $ | 1,056,863 | $ | 179,660 | $ | – | $ | – |
See Notes to Financial Statements. | |
46 | www.cullenfunds.com |
Cullen Funds Trust | Statements of Changes in Net Assets |
Cullen Small Cap Value Fund | Cullen Value Fund | |||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
June 30, 2018 | June 30, 2017 | June 30, 2018 | June 30, 2017 | |||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income/(loss) | $ | (14,084 | ) | $ | (6,070 | ) | $ | 516,466 | $ | 541,649 | ||||||
Net realized gain | 301,162 | 957,553 | 446,328 | 1,826,661 | ||||||||||||
Net change in unrealized appreciation | 4,075 | 139,395 | 1,625,574 | 2,588,777 | ||||||||||||
Net Increase in Net Assets Resulting from Operations | 291,153 | 1,090,878 | 2,588,368 | 4,957,087 | ||||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||
From net investment income | ||||||||||||||||
Retail | – | (115 | ) | (8,006 | ) | (9,293 | ) | |||||||||
Class C | – | – | (1,921 | ) | (3,163 | ) | ||||||||||
Class I | – | (4,118 | ) | (493,101 | ) | (547,377 | ) | |||||||||
From net realized gains | ||||||||||||||||
Retail | (83,878 | ) | (3,543 | ) | (39,322 | ) | (4,453 | ) | ||||||||
Class C | (9,966 | ) | (507 | ) | (28,968 | ) | (2,878 | ) | ||||||||
Class I | (581,573 | ) | (30,820 | ) | (1,989,683 | ) | (207,791 | ) | ||||||||
Net Decrease in Net Assets from Distributions | (675,417 | ) | (39,103 | ) | (2,561,001 | ) | (774,955 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS (NOTE 3) | ||||||||||||||||
Shares sold | ||||||||||||||||
Retail | 83,051 | 41,487 | 203,045 | 60,697 | ||||||||||||
Class C | – | – | 21,384 | 25,100 | ||||||||||||
Class I | 291,946 | 163,568 | 4,235,716 | 6,198,021 | ||||||||||||
Dividends reinvested | ||||||||||||||||
Retail | 80,543 | 3,549 | 47,061 | 13,676 | ||||||||||||
Class C | 9,966 | 507 | 22,848 | 4,357 | ||||||||||||
Class I | 581,573 | 34,938 | 2,482,784 | 755,168 | ||||||||||||
Shares redeemed | ||||||||||||||||
Retail | (141,950 | ) | (594,105 | ) | (218,173 | ) | (373,623 | ) | ||||||||
Class C | (13,070 | ) | (24,866 | ) | (292,253 | ) | (40,206 | ) | ||||||||
Class I | (178,584 | ) | (2,451,041 | ) | (3,494,516 | ) | (8,360,069 | ) | ||||||||
Redemption fees | ||||||||||||||||
Retail | – | – | – | – | ||||||||||||
Class C | – | – | – | – | ||||||||||||
Class I | – | 134 | – | – | ||||||||||||
Net Increase/(Decrease) in Net Assets Derived from Capital Share Transactions | 713,475 | (2,825,829 | ) | 3,007,896 | (1,716,879 | ) | ||||||||||
Net Increase/(Decrease) in Net Assets | 329,211 | (1,774,054 | ) | 3,035,263 | 2,465,253 | |||||||||||
NET ASSETS | ||||||||||||||||
Beginning of year | 3,849,813 | 5,623,867 | 33,007,229 | 30,541,976 | ||||||||||||
End of year * | $ | 4,179,024 | $ | 3,849,813 | $ | 36,042,492 | $ | 33,007,229 | ||||||||
*Includes undistributed net investment income/(loss) of: | $ | – | $ | (7,456 | ) | $ | 27,845 | $ | 14,405 |
See Notes to Financial Statements. | |
Annual Report | June 30, 2018 | 47 |
Cullen Funds Trust | Statements of Changes in Net Assets |
Cullen Emerging Markets High Dividend | ||||||||||||||||
Fund | Cullen Enhanced Equity Income Fund | |||||||||||||||
Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||||
June 30, 2018 | June 30, 2017 | June 30, 2018 | June 30, 2017 | |||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 12,169,376 | $ | 8,399,105 | $ | 869,778 | $ | 249,162 | ||||||||
Net realized gain/(loss) | 12,239,607 | (3,803,586 | ) | 564,385 | 728,680 | |||||||||||
Net change in unrealized appreciation/(depreciation) | (22,899,839 | ) | 38,944,009 | (2,014,819 | ) | 59,141 | ||||||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations | 1,509,144 | 43,539,528 | (580,656 | ) | 1,036,983 | |||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||
From net investment income | ||||||||||||||||
Retail | (586,670 | ) | (495,116 | ) | (56,335 | ) | (27,640 | ) | ||||||||
Class C | (77,535 | ) | (90,247 | ) | (93,768 | ) | (20,829 | ) | ||||||||
Class I | (13,293,832 | ) | (9,284,470 | ) | (715,654 | ) | (211,201 | ) | ||||||||
From net realized gains | ||||||||||||||||
Retail | – | – | (138,720 | ) | (59,891 | ) | ||||||||||
Class C | – | – | (254,229 | ) | (45,132 | ) | ||||||||||
Class I | – | – | (1,560,388 | ) | (457,642 | ) | ||||||||||
Net Decrease in Net Assets from Distributions | (13,958,037 | ) | (9,869,833 | ) | (2,819,094 | ) | (822,335 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS (NOTE 3) | ||||||||||||||||
Shares sold | ||||||||||||||||
Retail | 5,339,790 | 6,914,480 | 1,812,646 | 1,430,407 | ||||||||||||
Class C | 568,997 | 739,343 | 3,463,186 | 1,969,436 | ||||||||||||
Class I | 158,380,339 | 120,710,804 | 26,011,578 | 15,406,546 | ||||||||||||
Dividends reinvested | ||||||||||||||||
Retail | 549,066 | 464,198 | 180,631 | 86,496 | ||||||||||||
Class C | 77,535 | 90,247 | 163,744 | 58,392 | ||||||||||||
Class I | 11,984,519 | 8,443,993 | 1,755,760 | 591,025 | ||||||||||||
Shares redeemed | ||||||||||||||||
Retail | (7,836,573 | ) | (4,822,288 | ) | (1,629,771 | ) | (192,228 | ) | ||||||||
Class C | (1,226,584 | ) | (1,335,627 | ) | (791,840 | ) | (31,876 | ) | ||||||||
Class I | (69,565,246 | ) | (65,440,192 | ) | (5,418,192 | ) | (369,747 | ) | ||||||||
Redemption fees | ||||||||||||||||
Retail | 368 | 18 | – | – | ||||||||||||
Class C | – | – | – | – | ||||||||||||
Class I | 625 | 476 | 122 | – | ||||||||||||
Net Increase in Net Assets Derived from Capital Share Transactions | 98,272,836 | 65,765,452 | 25,547,864 | 18,948,451 | ||||||||||||
Net Increase in Net Assets | 85,823,943 | 99,435,147 | 22,148,114 | 19,163,099 | ||||||||||||
NET ASSETS | ||||||||||||||||
Beginning of year | 324,464,418 | 225,029,271 | 24,551,702 | 5,388,603 | ||||||||||||
End of year * | $ | 410,288,361 | $ | 324,464,418 | $ | 46,699,816 | $ | 24,551,702 | ||||||||
*Includes undistributed net investment income/(loss) of: | $ | (1,464,215 | ) | $ | 203,113 | $ | – | $ | (13 | ) |
See Notes to Financial Statements. | |
48 | www.cullenfunds.com |
Page Intentionally Left Blank
Cullen Funds Trust |
Year End | Net Asset Value Beginning of Period | Net Investment Income/(Loss)(a) | Net Realized and Unrealized Gain/(Loss) on Investments | Total from Investment Operations | Distributions from Net Investment Income | Total Distributions | Net Asset Value End of Period | |||||||||||||||||||||
Cullen International High Dividend Fund | ||||||||||||||||||||||||||||
Retail | ||||||||||||||||||||||||||||
6/30/2018 | $ | 10.30 | 0.20 | (0.36 | ) | (0.16 | ) | (0.26 | ) | (0.26 | ) | $ | 9.88 | |||||||||||||||
6/30/2017 | $ | 9.37 | 0.26 | 0.92 | 1.18 | (0.25 | ) | (0.25 | ) | $ | 10.30 | |||||||||||||||||
6/30/2016 | $ | 10.22 | 0.22 | (0.85 | ) | (0.63 | ) | (0.22 | ) | (0.22 | ) | $ | 9.37 | |||||||||||||||
6/30/2015 | $ | 11.45 | 0.26 | (1.21 | ) | (0.95 | ) | (0.28 | ) | (0.28 | ) | $ | 10.22 | |||||||||||||||
6/30/2014 | $ | 10.04 | 0.45 | 1.40 | 1.85 | (0.44 | ) | (0.44 | ) | $ | 11.45 | |||||||||||||||||
Class C | ||||||||||||||||||||||||||||
6/30/2018 | $ | 10.27 | 0.18 | (0.41 | ) | (0.23 | ) | (0.19 | ) | (0.19 | ) | $ | 9.85 | |||||||||||||||
6/30/2017 | $ | 9.34 | 0.17 | 0.93 | 1.10 | (0.17 | ) | (0.17 | ) | $ | 10.27 | |||||||||||||||||
6/30/2016 | $ | 10.19 | 0.16 | (0.85 | ) | (0.69 | ) | (0.16 | ) | (0.16 | ) | $ | 9.34 | |||||||||||||||
6/30/2015 | $ | 11.42 | 0.19 | (1.22 | ) | (1.03 | ) | (0.20 | ) | (0.20 | ) | $ | 10.19 | |||||||||||||||
6/30/2014 | $ | 10.02 | 0.37 | 1.39 | 1.76 | (0.36 | ) | (0.36 | ) | $ | 11.42 | |||||||||||||||||
Class I | ||||||||||||||||||||||||||||
6/30/2018 | $ | 10.37 | 0.30 | (0.43 | ) | (0.13 | ) | (0.29 | ) | (0.29 | ) | $ | 9.95 | |||||||||||||||
6/30/2017 | $ | 9.43 | 0.27 | 0.94 | 1.21 | (0.27 | ) | (0.27 | ) | $ | 10.37 | |||||||||||||||||
6/30/2016 | $ | 10.29 | 0.25 | (0.86 | ) | (0.61 | ) | (0.25 | ) | (0.25 | ) | $ | 9.43 | |||||||||||||||
6/30/2015 | $ | 11.52 | 0.28 | (1.20 | ) | (0.92 | ) | (0.31 | ) | (0.31 | ) | $ | 10.29 | |||||||||||||||
6/30/2014 | $ | 10.10 | 0.50 | 1.39 | 1.89 | (0.47 | ) | (0.47 | ) | $ | 11.52 | |||||||||||||||||
Class R1 | ||||||||||||||||||||||||||||
6/30/2018 | $ | 11.90 | 0.18 | (0.41 | ) | (0.23 | ) | (0.18 | ) | (0.18 | ) | $ | 11.49 | |||||||||||||||
6/30/2017 | $ | 10.79 | 0.24 | 1.06 | 1.30 | (0.19 | ) | (0.19 | ) | $ | 11.90 | |||||||||||||||||
6/30/2016 | $ | 11.72 | 0.19 | (0.95 | ) | (0.76 | ) | (0.17 | ) | (0.17 | ) | $ | 10.79 | |||||||||||||||
6/30/2015 | $ | 13.09 | 0.25 | (1.39 | ) | (1.14 | ) | (0.23 | ) | (0.23 | ) | $ | 11.72 | |||||||||||||||
6/30/2014 | $ | 11.43 | 0.46 | 1.58 | 2.04 | (0.38 | ) | (0.38 | ) | $ | 13.09 | |||||||||||||||||
Class R2 | ||||||||||||||||||||||||||||
6/30/2018 | $ | 11.82 | 0.24 | (0.45 | ) | (0.21 | ) | (0.23 | ) | (0.23 | ) | $ | 11.38 | |||||||||||||||
6/30/2017 | $ | 10.71 | 0.26 | 1.07 | 1.33 | (0.22 | ) | (0.22 | ) | $ | 11.82 | |||||||||||||||||
6/30/2016 | $ | 11.64 | 0.25 | (0.98 | ) | (0.73 | ) | (0.20 | ) | (0.20 | ) | $ | 10.71 | |||||||||||||||
6/30/2015 | $ | 13.01 | 0.29 | (1.40 | ) | (1.11 | ) | (0.26 | ) | (0.26 | ) | $ | 11.64 | |||||||||||||||
6/30/2014 | $ | 11.35 | 0.49 | 1.58 | 2.07 | (0.41 | ) | (0.41 | ) | $ | 13.01 |
(a) | Average share method used. |
(b) | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividend distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return calculated for a period of less than one year is not annualized. Total return would have been lower if certain fees had not been waived and expenses reimbursed by the Advisor. |
(c) | Expense ratios after reimbursements do not reflect acquired fund fees and expenses. |
See Notes to Financial Statements. | |
50 | www.cullenfunds.com |
Financial Highlights |
For a Share Outstanding Throughout Periods Presented |
Ratio of Net | Ratio of Net | |||||||||||||||||||||||||
Ratio of | Ratio of | Investment | Investment | |||||||||||||||||||||||
Expenses Before | Expenses After | Income/(Loss) to | Income/(Loss) to | |||||||||||||||||||||||
Net Assets, | Reimbursements | Reimbursements | Average Net Assets | Average Net Assets | Portfolio | |||||||||||||||||||||
End of Period | to Average | to Average | before | after | Turnover | |||||||||||||||||||||
Total Return(b) | (000) | Net Assets | Net Assets(c) | Reimbursements | Reimbursements | Rate | ||||||||||||||||||||
(1.60 | %) | $ | 9,761 | 1.46 | % | 1.25 | % | 1.68 | % | 1.89 | % | 31 | % | |||||||||||||
12.72 | % | $ | 41,377 | 1.48 | % | 1.25 | % | 2.43 | % | 2.66 | % | 41 | % | |||||||||||||
(6.09 | %) | $ | 34,175 | 1.44 | % | 1.25 | % | 2.10 | % | 2.29 | % | 38 | % | |||||||||||||
(8.34 | %) | $ | 56,893 | 1.39 | % | 1.25 | % | 2.31 | % | 2.45 | % | 44 | % | |||||||||||||
18.62 | % | $ | 65,198 | 1.38 | % | 1.25 | % | 3.99 | % | 4.12 | % | 45 | % | |||||||||||||
(2.34 | %) | $ | 3,047 | 2.21 | % | 2.00 | % | 1.55 | % | 1.76 | % | 31 | % | |||||||||||||
11.90 | % | $ | 2,902 | 2.22 | % | 2.00 | % | 1.59 | % | 1.82 | % | 41 | % | |||||||||||||
(6.79 | %) | $ | 3,218 | 2.19 | % | 2.00 | % | 1.45 | % | 1.64 | % | 38 | % | |||||||||||||
(9.02 | %) | $ | 3,956 | 2.15 | % | 2.00 | % | 1.63 | % | 1.78 | % | 44 | % | |||||||||||||
17.70 | % | $ | 3,799 | 2.13 | % | 2.00 | % | 3.30 | % | 3.43 | % | 45 | % | |||||||||||||
(1.34 | %) | $ | 234,350 | 1.22 | % | 1.00 | % | 2.60 | % | 2.82 | % | 31 | % | |||||||||||||
13.02 | % | $ | 194,201 | 1.22 | % | 1.00 | % | 2.53 | % | 2.75 | % | 41 | % | |||||||||||||
(5.90 | %) | $ | 194,432 | 1.19 | % | 1.00 | % | 2.41 | % | 2.61 | % | 38 | % | |||||||||||||
(8.04 | %) | $ | 244,026 | 1.14 | % | 1.00 | % | 2.47 | % | 2.61 | % | 44 | % | |||||||||||||
18.89 | % | $ | 388,934 | 1.13 | % | 1.00 | % | 4.40 | % | 4.53 | % | 45 | % | |||||||||||||
(2.03 | %) | $ | 11 | 1.71 | % | 1.71 | % | 1.52 | % | 1.52 | % | 31 | % | |||||||||||||
12.17 | % | $ | 66 | 1.72 | % | 1.72 | % | 2.12 | % | 2.12 | % | 41 | % | |||||||||||||
(6.45 | %) | $ | 59 | 1.69 | % | 1.69 | % | 1.72 | % | 1.72 | % | 38 | % | |||||||||||||
(8.73 | %) | $ | 101 | 1.64 | % | 1.64 | % | 2.09 | % | 2.09 | % | 44 | % | |||||||||||||
17.95 | % | $ | 110 | 1.83 | % | 1.75 | % | 3.57 | % | 3.65 | % | 45 | % | |||||||||||||
(1.80 | %) | $ | 62 | 1.46 | % | 1.46 | % | 1.97 | % | 1.97 | % | 31 | % | |||||||||||||
12.52 | % | $ | 121 | 1.47 | % | 1.47 | % | 2.35 | % | 2.35 | % | 41 | % | |||||||||||||
(6.23 | %) | $ | 165 | 1.44 | % | 1.44 | % | 2.28 | % | 2.28 | % | 38 | % | |||||||||||||
(8.53 | %) | $ | 181 | 1.40 | % | 1.40 | % | 2.43 | % | 2.43 | % | 44 | % | |||||||||||||
18.37 | % | $ | 86 | 1.58 | % | 1.50 | % | 3.85 | % | 3.93 | % | 45 | % |
Annual Report | June 30, 2018 | 51 |
Cullen Funds Trust |
Net Realized and | Distributions | Distributions | ||||||||||||||||||||||||||||||
Net Asset Value | Unrealized | Total from | from | from Net | ||||||||||||||||||||||||||||
Beginning of | Net Investment | Gain/(Loss) | Investment | Net Investment | Realized | Total | Net Asset Value | |||||||||||||||||||||||||
Year End | Period | Income/(Loss)(a) | on Investments | Operations | Income | Capital Gains | Distributions | End of Period | ||||||||||||||||||||||||
Cullen High Dividend Equity Fund | ||||||||||||||||||||||||||||||||
Retail | ||||||||||||||||||||||||||||||||
6/30/2018 | $ | 18.61 | 0.38 | 0.52 | 0.90 | (0.37 | ) | (1.46 | ) | (1.83 | ) | $ | 17.68 | |||||||||||||||||||
6/30/2017 | $ | 17.56 | 0.40 | 1.53 | 1.93 | (0.41 | ) | (0.47 | ) | (0.88 | ) | $ | 18.61 | |||||||||||||||||||
6/30/2016 | $ | 16.64 | 0.40 | 1.38 | 1.78 | (0.41 | ) | (0.45 | ) | (0.86 | ) | $ | 17.56 | |||||||||||||||||||
6/30/2015 | $ | 17.58 | 0.37 | (0.35 | ) | 0.02 | (0.39 | ) | (0.57 | ) | (0.96 | ) | $ | 16.64 | ||||||||||||||||||
6/30/2014 | $ | 15.28 | 0.65 | 2.31 | 2.96 | (0.66 | ) | – | (0.66 | ) | $ | 17.58 | ||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
6/30/2018 | $ | 18.46 | 0.24 | 0.52 | 0.76 | (0.26 | ) | (1.46 | ) | (1.72 | ) | $ | 17.50 | |||||||||||||||||||
6/30/2017 | $ | 17.44 | 0.27 | 1.51 | 1.78 | (0.29 | ) | (0.47 | ) | (0.76 | ) | $ | 18.46 | |||||||||||||||||||
6/30/2016 | $ | 16.53 | 0.28 | 1.37 | 1.65 | (0.29 | ) | (0.45 | ) | (0.74 | ) | $ | 17.44 | |||||||||||||||||||
6/30/2015 | $ | 17.51 | 0.24 | (0.37 | ) | (0.13 | ) | (0.28 | ) | (0.57 | ) | (0.85 | ) | $ | 16.53 | |||||||||||||||||
6/30/2014 | $ | 15.22 | 0.53 | 2.31 | 2.84 | (0.55 | ) | – | (0.55 | ) | $ | 17.51 | ||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||
6/30/2018 | $ | 18.62 | 0.43 | 0.52 | 0.95 | (0.42 | ) | (1.46 | ) | (1.88 | ) | $ | 17.69 | |||||||||||||||||||
6/30/2017 | $ | 17.57 | 0.45 | 1.52 | 1.97 | (0.45 | ) | (0.47 | ) | (0.92 | ) | $ | 18.62 | |||||||||||||||||||
6/30/2016 | $ | 16.64 | 0.45 | 1.38 | 1.83 | (0.45 | ) | (0.45 | ) | (0.90 | ) | $ | 17.57 | |||||||||||||||||||
6/30/2015 | $ | 17.59 | 0.41 | (0.36 | ) | 0.05 | (0.43 | ) | (0.57 | ) | (1.00 | ) | $ | 16.64 | ||||||||||||||||||
6/30/2014 | $ | 15.28 | 0.69 | 2.32 | 3.01 | (0.70 | ) | – | (0.70 | ) | $ | 17.59 | ||||||||||||||||||||
Class R1 | ||||||||||||||||||||||||||||||||
6/30/2018 | $ | 16.39 | 0.25 | 0.47 | 0.72 | (0.30 | ) | (1.46 | ) | (1.76 | ) | $ | 15.35 | |||||||||||||||||||
6/30/2017 | $ | 15.57 | 0.30 | 1.32 | 1.62 | (0.33 | ) | (0.47 | ) | (0.80 | ) | $ | 16.39 | |||||||||||||||||||
6/30/2016 | $ | 14.84 | 0.28 | 1.23 | 1.51 | (0.33 | ) | (0.45 | ) | (0.78 | ) | $ | 15.57 | |||||||||||||||||||
6/30/2015 | $ | 15.80 | 0.26 | (0.33 | ) | (0.07 | ) | (0.32 | ) | (0.57 | ) | (0.89 | ) | $ | 14.84 | |||||||||||||||||
6/30/2014 | $ | 13.79 | 0.52 | 2.08 | 2.60 | (0.59 | ) | – | (0.59 | ) | $ | 15.80 | ||||||||||||||||||||
Class R2 | ||||||||||||||||||||||||||||||||
6/30/2018 | $ | 16.57 | 0.27 | 0.50 | 0.77 | (0.33 | ) | (1.46 | ) | (1.79 | ) | $ | 15.55 | |||||||||||||||||||
6/30/2017 | $ | 15.73 | 0.32 | 1.35 | 1.67 | (0.36 | ) | (0.47 | ) | (0.83 | ) | $ | 16.57 | |||||||||||||||||||
6/30/2016 | $ | 14.98 | 0.33 | 1.24 | 1.57 | (0.37 | ) | (0.45 | ) | (0.82 | ) | $ | 15.73 | |||||||||||||||||||
6/30/2015 | $ | 15.93 | 0.30 | (0.33 | ) | (0.03 | ) | (0.35 | ) | (0.57 | ) | (0.92 | ) | $ | 14.98 | |||||||||||||||||
6/30/2014 | $ | 13.94 | 0.65 | 1.97 | 2.62 | (0.63 | ) | – | (0.63 | ) | $ | 15.93 |
(a) | Average share method used. |
(b) | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividend distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return calculated for a period of less than one year is not annualized. Total return would have been lower if certain fees had not been waived and expenses reimbursed by the Advisor. |
(c) | Expense ratios after reimbursements do not reflect acquired fund fees and expenses. |
See Notes to Financial Statements. | |
52 | www.cullenfunds.com |
Financial Highlights |
For a Share Outstanding Throughout Periods Presented |
Ratio of Net | Ratio of Net | |||||||||||||||||||||||||
Ratio of | Ratio of | Investment | Investment | |||||||||||||||||||||||
Expenses Before | Expenses After | Income/(Loss) to | Income/(Loss) to | |||||||||||||||||||||||
Net Assets, | Reimbursements | Reimbursements | Average Net Assets | Average Net Assets | Portfolio | |||||||||||||||||||||
End of Period | to Average | to Average | before | after | Turnover | |||||||||||||||||||||
Total Return(b) | (000) | Net Assets | Net Assets(c) | Reimbursements | Reimbursements | Rate | ||||||||||||||||||||
4.61 | % | $ | 203,509 | 1.32 | % | 1.00 | % | 1.69 | % | 2.01 | % | 16 | % | |||||||||||||
11.35 | % | $ | 339,568 | 1.32 | % | 1.00 | % | 1.93 | % | 2.24 | % | 20 | % | |||||||||||||
11.03 | % | $ | 336,775 | 1.32 | % | 1.00 | % | 2.10 | % | 2.42 | % | 12 | % | |||||||||||||
(0.11 | %) | $ | 409,564 | 1.32 | % | 1.00 | % | 1.80 | % | 2.11 | % | 10 | % | |||||||||||||
19.76 | % | $ | 521,226 | 1.31 | % | 1.00 | % | 3.67 | % | 3.99 | % | 6 | % | |||||||||||||
3.85 | % | $ | 62,291 | 2.07 | % | 1.75 | % | 0.95 | % | 1.27 | % | 16 | % | |||||||||||||
10.51 | % | $ | 87,142 | 2.07 | % | 1.75 | % | 1.18 | % | 1.50 | % | 20 | % | |||||||||||||
10.28 | % | $ | 94,658 | 2.07 | % | 1.75 | % | 1.37 | % | 1.69 | % | 12 | % | |||||||||||||
(0.93 | %) | $ | 91,504 | 2.07 | % | 1.75 | % | 1.06 | % | 1.38 | % | 10 | % | |||||||||||||
18.97 | % | $ | 90,783 | 2.06 | % | 1.75 | % | 2.96 | % | 3.27 | % | 6 | % | |||||||||||||
4.87 | % | $ | 1,426,692 | 1.07 | % | 0.75 | % | 1.96 | % | 2.28 | % | 16 | % | |||||||||||||
11.63 | % | $ | 1,405,326 | 1.07 | % | 0.75 | % | 2.18 | % | 2.50 | % | 20 | % | |||||||||||||
11.37 | % | $ | 1,504,654 | 1.07 | % | 0.75 | % | 2.37 | % | 2.69 | % | 12 | % | |||||||||||||
0.06 | % | $ | 1,635,821 | 1.07 | % | 0.75 | % | 2.05 | % | 2.37 | % | 10 | % | |||||||||||||
20.13 | % | $ | 1,906,742 | 1.06 | % | 0.75 | % | 3.90 | % | 4.21 | % | 6 | % | |||||||||||||
4.09 | % | $ | 374 | 1.57 | % | 1.50 | % | 1.46 | % | 1.53 | % | 16 | % | |||||||||||||
10.81 | % | $ | 496 | 1.57 | % | 1.50 | % | 1.85 | % | 1.92 | % | 20 | % | |||||||||||||
10.53 | % | $ | 2,981 | 1.57 | % | 1.50 | % | 1.83 | % | 1.90 | % | 12 | % | |||||||||||||
(0.67 | %) | $ | 4,552 | 1.57 | % | 1.50 | % | 1.56 | % | 1.63 | % | 10 | % | |||||||||||||
19.24 | % | $ | 4,921 | 1.76 | % | 1.50 | % | 3.28 | % | 3.54 | % | 6 | % | |||||||||||||
4.38 | % | $ | 1,179 | 1.57 | % | 1.25 | % | 1.29 | % | 1.61 | % | 16 | % | |||||||||||||
11.04 | % | $ | 3,604 | 1.57 | % | 1.25 | % | 1.67 | % | 1.98 | % | 20 | % | |||||||||||||
10.84 | % | $ | 3,664 | 1.57 | % | 1.25 | % | 1.88 | % | 2.20 | % | 12 | % | |||||||||||||
(0.41 | %) | $ | 3,365 | 1.32 | % | 1.25 | % | 1.83 | % | 1.90 | % | 10 | % | |||||||||||||
19.16 | % | $ | 3,237 | 1.50 | % | 1.25 | % | 4.10 | % | 4.36 | % | 6 | % |
Annual Report | June 30, 2018 | 53 |
Cullen Funds Trust |
Net Realized and | Distributions | Distributions | ||||||||||||||||||||||||||||||
Net Asset Value | Unrealized | Total from | from | from Net | ||||||||||||||||||||||||||||
Beginning of | Net Investment | Gain/(Loss) | Investment | Net Investment | Realized | Total | Net Asset Value | |||||||||||||||||||||||||
Year End | Period | Income/(Loss)(a) | on Investments | Operations | Income | Capital Gains | Distributions | End of Period | ||||||||||||||||||||||||
Cullen Small Cap Value Fund | ||||||||||||||||||||||||||||||||
Retail | ||||||||||||||||||||||||||||||||
6/30/2018 | $ | 13.88 | (0.07 | ) | 0.98 | 0.91 | – | (2.44 | ) | (2.44 | ) | $ | 12.35 | |||||||||||||||||||
6/30/2017 | $ | 11.56 | (0.04 | ) | 2.44 | 2.40 | (0.00 | )(d) | (0.08 | ) | (0.08 | ) | $ | 13.88 | ||||||||||||||||||
6/30/2016 | $ | 14.15 | (0.01 | ) | (2.26 | ) | (2.27 | ) | – | (0.32 | ) | (0.32 | ) | $ | 11.56 | |||||||||||||||||
6/30/2015 | $ | 17.37 | (0.04 | ) | (1.14 | ) | (1.18 | ) | – | (2.04 | ) | (2.04 | ) | $ | 14.15 | |||||||||||||||||
6/30/2014 | $ | 14.69 | (0.07 | ) | 2.98 | 2.91 | – | (0.23 | ) | (0.23 | ) | $ | 17.37 | |||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
6/30/2018 | $ | 13.14 | (0.16 | ) | 0.92 | 0.76 | – | (2.44 | ) | (2.44 | ) | $ | 11.46 | |||||||||||||||||||
6/30/2017 | $ | 11.03 | (0.14 | ) | 2.33 | 2.19 | – | (0.08 | ) | (0.08 | ) | $ | 13.14 | |||||||||||||||||||
6/30/2016 | $ | 13.62 | (0.10 | ) | (2.17 | ) | (2.27 | ) | – | (0.32 | ) | (0.32 | ) | $ | 11.03 | |||||||||||||||||
6/30/2015 | $ | 16.91 | (0.14 | ) | (1.11 | ) | (1.25 | ) | – | (2.04 | ) | (2.04 | ) | $ | 13.62 | |||||||||||||||||
6/30/2014 | $ | 14.41 | (0.19 | ) | 2.92 | 2.73 | – | (0.23 | ) | (0.23 | ) | $ | 16.91 | |||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||
6/30/2018 | $ | 14.11 | (0.04 | ) | 1.00 | 0.96 | – | (2.44 | ) | (2.44 | ) | $ | 12.63 | |||||||||||||||||||
6/30/2017 | $ | 11.73 | (0.01 | ) | 2.48 | 2.47 | (0.01 | ) | (0.08 | ) | (0.09 | ) | $ | 14.11 | ||||||||||||||||||
6/30/2016 | $ | 14.32 | 0.02 | (2.29 | ) | (2.27 | ) | – | (0.32 | ) | (0.32 | ) | $ | 11.73 | ||||||||||||||||||
6/30/2015 | $ | 17.54 | (0.00 | )(d) | (1.18 | ) | (1.18 | ) | – | (2.04 | ) | (2.04 | ) | $ | 14.32 | |||||||||||||||||
6/30/2014 | $ | 14.80 | (0.03 | ) | 3.00 | 2.97 | – | (0.23 | ) | (0.23 | ) | $ | 17.54 | |||||||||||||||||||
Cullen Value Fund | ||||||||||||||||||||||||||||||||
Retail | ||||||||||||||||||||||||||||||||
6/30/2018 | $ | 15.30 | 0.20 | 1.03 | 1.23 | (0.19 | ) | (0.99 | ) | (1.18 | ) | $ | 15.35 | |||||||||||||||||||
6/30/2017 | $ | 13.46 | 0.20 | 1.96 | 2.16 | (0.22 | ) | (0.10 | ) | (0.32 | ) | $ | 15.30 | |||||||||||||||||||
6/30/2016 | $ | 13.82 | 0.13 | 0.11 | 0.24 | (0.57 | ) | (0.03 | ) | (0.60 | ) | $ | 13.46 | |||||||||||||||||||
6/30/2015 | $ | 13.87 | 0.15 | (0.04 | ) | 0.11 | (0.16 | ) | – | (0.16 | ) | $ | 13.82 | |||||||||||||||||||
6/30/2014 | $ | 11.26 | 0.14 | 2.78 | 2.92 | (0.13 | ) | (0.18 | ) | (0.31 | ) | $ | 13.87 | |||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
6/30/2018 | $ | 15.28 | 0.09 | 1.04 | 1.13 | (0.08 | ) | (0.99 | ) | (1.07 | ) | $ | 15.34 | |||||||||||||||||||
6/30/2017 | $ | 13.44 | 0.09 | 1.95 | 2.04 | (0.10 | ) | (0.10 | ) | (0.20 | ) | $ | 15.28 | |||||||||||||||||||
6/30/2016 | $ | 13.79 | 0.03 | 0.12 | 0.15 | (0.47 | ) | (0.03 | ) | (0.50 | ) | $ | 13.44 | |||||||||||||||||||
6/30/2015 | $ | 13.86 | 0.05 | (0.07 | ) | (0.02 | ) | (0.05 | ) | – | (0.05 | ) | $ | 13.79 | ||||||||||||||||||
6/30/2014 | $ | 11.25 | 0.04 | 2.79 | 2.83 | (0.04 | ) | (0.18 | ) | (0.22 | ) | $ | 13.86 | |||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||
6/30/2018 | $ | 15.29 | 0.24 | 1.03 | 1.27 | (0.23 | ) | (0.99 | ) | (1.22 | ) | $ | 15.34 | |||||||||||||||||||
6/30/2017 | $ | 13.44 | 0.24 | 1.96 | 2.20 | (0.25 | ) | (0.10 | ) | (0.35 | ) | $ | 15.29 | |||||||||||||||||||
6/30/2016 | $ | 13.80 | 0.16 | 0.11 | 0.27 | (0.60 | ) | (0.03 | ) | (0.63 | ) | $ | 13.44 | |||||||||||||||||||
6/30/2015 | $ | 13.87 | 0.18 | (0.06 | ) | 0.12 | (0.19 | ) | – | (0.19 | ) | $ | 13.80 | |||||||||||||||||||
6/30/2014 | $ | 11.26 | 0.17 | 2.79 | 2.96 | (0.17 | ) | (0.18 | ) | (0.35 | ) | $ | 13.87 |
(a) | Average share method used. |
(b) | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividend distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return calculated for a period of less than one year is not annualized. Total return would have been lower if certain fees had not been waived and expenses reimbursed by the Advisor. |
(c) | Expense ratios after reimbursements do not reflect acquired fund fees and expenses. |
(d) | Less than $0.01. |
See Notes to Financial Statements. | |
54 | www.cullenfunds.com |
Financial Highlights |
For a Share Outstanding Throughout Periods Presented |
Ratio of Net | Ratio of Net | |||||||||||||||||||||||||
Ratio of | Ratio of | Investment | Investment | |||||||||||||||||||||||
Expenses Before | Expenses After | Income/(Loss) to | Income/(Loss) to | |||||||||||||||||||||||
Net Assets, | Reimbursements | Reimbursements | Average Net Assets | Average Net Assets | Portfolio | |||||||||||||||||||||
End of Period | to Average | to Average | before | after | Turnover | |||||||||||||||||||||
Total Return(b) | (000) | Net Assets | Net Assets(c) | Reimbursements | Reimbursements | Rate | ||||||||||||||||||||
7.38 | % | $ | 440 | 8.02 | % | 1.25 | % | (7.34 | %) | (0.57 | %) | 34 | % | |||||||||||||
20.81 | % | $ | 471 | 6.05 | % | 1.25 | % | (5.10 | %) | (0.30 | %) | 85 | % | |||||||||||||
(16.15 | %) | $ | 863 | 5.53 | % | 1.25 | % | (4.37 | %) | (0.10 | %) | 42 | % | |||||||||||||
(5.88 | %) | $ | 1,094 | 4.33 | % | 1.25 | % | (3.31 | %) | (0.23 | %) | 37 | % | |||||||||||||
19.79 | % | $ | 2,487 | 3.55 | % | 1.25 | % | (2.72 | %) | (0.42 | %) | 27 | % | |||||||||||||
6.56 | % | $ | 55 | 8.79 | % | 2.00 | % | (8.11 | %) | (1.32 | %) | 34 | % | |||||||||||||
19.89 | % | $ | 65 | 6.94 | % | 2.00 | % | (6.02 | %) | (1.09 | %) | 85 | % | |||||||||||||
(16.79 | %) | $ | 75 | 6.29 | % | 2.00 | % | (5.13 | %) | (0.84 | %) | 42 | % | |||||||||||||
(6.49 | %) | $ | 87 | 5.24 | % | 2.00 | % | (4.25 | %) | (1.00 | %) | 37 | % | |||||||||||||
18.92 | % | $ | 117 | 4.29 | % | 2.00 | % | (3.46 | %) | (1.16 | %) | 27 | % | |||||||||||||
7.62 | % | $ | 3,684 | 7.81 | % | 1.00 | % | (7.13 | %) | (0.32 | %) | 34 | % | |||||||||||||
21.11 | % | $ | 3,314 | 5.88 | % | 1.00 | % | (4.96 | %) | (0.08 | %) | 85 | % | |||||||||||||
(15.96 | %) | $ | 4,686 | 5.28 | % | 1.00 | % | (4.13 | %) | 0.15 | % | 42 | % | |||||||||||||
(5.79 | %) | $ | 5,621 | 4.26 | % | 1.00 | % | (3.28 | %) | (0.02 | %) | 37 | % | |||||||||||||
20.05 | % | $ | 7,126 | 3.27 | % | 1.00 | % | (2.43 | %) | (0.16 | %) | 27 | % | |||||||||||||
7.97 | % | $ | 626 | 2.04 | % | 1.00 | % | 0.24 | % | 1.28 | % | 2 | % | |||||||||||||
16.19 | % | $ | 595 | 1.99 | % | 1.00 | % | 0.43 | % | 1.42 | % | 18 | % | |||||||||||||
2.02 | % | $ | 814 | 2.19 | % | 1.00 | % | (0.20 | %) | 0.99 | % | 3 | % | |||||||||||||
0.77 | % | $ | 914 | 2.10 | % | 1.00 | % | (0.04 | %) | 1.06 | % | 11 | % | |||||||||||||
26.17 | % | $ | 1,051 | 1.98 | % | 1.00 | % | 0.11 | % | 1.09 | % | 8 | % | |||||||||||||
7.25 | % | $ | 203 | 2.78 | % | 1.75 | % | (0.49 | %) | 0.54 | % | 2 | % | |||||||||||||
15.30 | % | $ | 445 | 2.74 | % | 1.75 | % | (0.33 | %) | 0.66 | % | 18 | % | |||||||||||||
1.29 | % | $ | 401 | 2.96 | % | 1.75 | % | (0.97 | %) | 0.24 | % | 3 | % | |||||||||||||
(0.12 | %) | $ | 322 | 2.86 | % | 1.75 | % | (0.77 | %) | 0.34 | % | 11 | % | |||||||||||||
25.31 | % | $ | 267 | 2.86 | % | 1.75 | % | (0.75 | %) | 0.35 | % | 8 | % | |||||||||||||
8.25 | % | $ | 35,213 | 1.80 | % | 0.75 | % | 0.47 | % | 1.52 | % | 2 | % | |||||||||||||
16.53 | % | $ | 31,968 | 1.74 | % | 0.75 | % | 0.68 | % | 1.67 | % | 18 | % | |||||||||||||
2.25 | % | $ | 29,327 | 1.95 | % | 0.75 | % | 0.04 | % | 1.24 | % | 3 | % | |||||||||||||
0.88 | % | $ | 28,296 | 1.86 | % | 0.75 | % | 0.23 | % | 1.34 | % | 11 | % | |||||||||||||
26.53 | % | $ | 27,373 | 1.84 | % | 0.75 | % | 0.26 | % | 1.35 | % | 8 | % |
Annual Report | June 30, 2018 | 55 |
Cullen Funds Trust |
Net Realized and | Distributions | Distributions | ||||||||||||||||||||||||||||||
Net Asset Value | Unrealized | Total from | from | from Net | ||||||||||||||||||||||||||||
Beginning of | Net Investment | Gain/(Loss) | Investment | Net Investment | Realized | Total | Net Asset Value | |||||||||||||||||||||||||
Year End | Period | Income/(Loss)(a) | on Investments | Operations | Income | Capital Gains | Distributions | End of Period | ||||||||||||||||||||||||
Cullen Emerging Markets High Dividend Fund | ||||||||||||||||||||||||||||||||
Retail | ||||||||||||||||||||||||||||||||
6/30/2018 | $ | 10.67 | 0.33 | (0.05 | ) | 0.28 | (0.40 | ) | – | (0.40 | ) | $ | 10.55 | |||||||||||||||||||
6/30/2017 | $ | 9.44 | 0.29 | 1.28 | 1.57 | (0.34 | ) | – | (0.34 | ) | $ | 10.67 | ||||||||||||||||||||
6/30/2016 | $ | 10.87 | 0.28 | (1.32 | ) | (1.04 | ) | (0.39 | ) | – | (0.39 | ) | $ | 9.44 | ||||||||||||||||||
6/30/2015 | $ | 11.57 | 0.22 | (0.60 | ) | (0.38 | ) | (0.32 | ) | – | (0.32 | ) | $ | 10.87 | ||||||||||||||||||
6/30/2014 | $ | 10.55 | 0.24 | 1.00 | 1.24 | (0.22 | ) | – | (0.22 | ) | $ | 11.57 | ||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
6/30/2018 | $ | 10.57 | 0.24 | (0.05 | ) | 0.19 | (0.31 | ) | – | (0.31 | ) | $ | 10.45 | |||||||||||||||||||
6/30/2017 | $ | 9.37 | 0.19 | 1.29 | 1.48 | (0.28 | ) | – | (0.28 | ) | $ | 10.57 | ||||||||||||||||||||
6/30/2016 | $ | 10.80 | 0.20 | (1.30 | ) | (1.10 | ) | (0.33 | ) | – | (0.33 | ) | $ | 9.37 | ||||||||||||||||||
6/30/2015 | $ | 11.51 | 0.15 | (0.60 | ) | (0.45 | ) | (0.26 | ) | – | (0.26 | ) | $ | 10.80 | ||||||||||||||||||
6/30/2014 | $ | 10.52 | 0.15 | 0.99 | 1.14 | (0.15 | ) | – | (0.15 | ) | $ | 11.51 | ||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||
6/30/2018 | $ | 10.73 | 0.37 | (0.07 | ) | 0.30 | (0.42 | ) | – | (0.42 | ) | $ | 10.61 | |||||||||||||||||||
6/30/2017 | $ | 9.50 | 0.32 | 1.27 | 1.59 | (0.36 | ) | – | (0.36 | ) | $ | 10.73 | ||||||||||||||||||||
6/30/2016 | $ | 10.91 | 0.31 | (1.31 | ) | (1.00 | ) | (0.41 | ) | – | (0.41 | ) | $ | 9.50 | ||||||||||||||||||
6/30/2015 | $ | 11.60 | 0.27 | (0.62 | ) | (0.35 | ) | (0.34 | ) | – | (0.34 | ) | $ | 10.91 | ||||||||||||||||||
6/30/2014 | $ | 10.57 | 0.28 | 0.99 | 1.27 | (0.24 | ) | – | (0.24 | ) | $ | 11.60 | ||||||||||||||||||||
Cullen Enhanced Equity Income Fund | ||||||||||||||||||||||||||||||||
Retail | ||||||||||||||||||||||||||||||||
6/30/2018 | $ | 10.66 | 0.23 | (0.27 | ) | (0.04 | ) | (0.26 | ) | (0.49 | ) | (0.75 | ) | $ | 9.87 | |||||||||||||||||
6/30/2017 | $ | 10.48 | 0.25 | 0.81 | 1.06 | (0.28 | ) | (0.60 | ) | (0.88 | ) | $ | 10.66 | |||||||||||||||||||
6/30/2016(d) | $ | 10.00 | 0.16 | 0.50 | 0.66 | (0.18 | ) | – | (0.18 | ) | $ | 10.48 | ||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
6/30/2018 | $ | 10.67 | 0.15 | (0.26 | ) | (0.11 | ) | (0.24 | ) | (0.43 | ) | (0.67 | ) | $ | 9.89 | |||||||||||||||||
6/30/2017 | $ | 10.52 | 0.16 | 0.81 | 0.97 | (0.26 | ) | (0.56 | ) | (0.82 | ) | $ | 10.67 | |||||||||||||||||||
6/30/2016(d) | $ | 10.00 | 0.13 | 0.50 | 0.63 | (0.11 | ) | – | (0.11 | ) | $ | 10.52 | ||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||
6/30/2018 | $ | 10.70 | 0.26 | (0.27 | ) | (0.01 | ) | (0.27 | ) | (0.50 | ) | (0.77 | ) | $ | 9.92 | |||||||||||||||||
6/30/2017 | $ | 10.52 | 0.28 | 0.80 | 1.08 | (0.28 | ) | (0.62 | ) | (0.90 | ) | $ | 10.70 | |||||||||||||||||||
6/30/2016(d) | $ | 10.00 | 0.18 | 0.50 | 0.68 | (0.16 | ) | – | (0.16 | ) | $ | 10.52 |
(a) | Average share method used. |
(b) | Total return is calculated assuming an initial investment made at the net asset value at the beginning of the period, reinvestment of all dividend distributions at net asset value during the period, and redemption at net asset value on the last day of the period. The returns presented do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or the redemption or sale of Fund shares. Total return calculated for a period of less than one year is not annualized. Total return would have been lower if certain fees had not been waived and expenses reimbursed by the Advisor. |
(c) | Expense ratios after reimbursements do not reflect acquired fund fees and expenses. |
(d) | Commencement of operations was December 15, 2015. |
(e) | Annualized. |
(f) | Not Annualized. |
See Notes to Financial Statements. | |
56 | www.cullenfunds.com |
Financial Highlights |
For a Share Outstanding Throughout Periods Presented |
Ratio of Net | Ratio of Net | |||||||||||||||||||||||||
Ratio of | Ratio of | Investment | Investment | |||||||||||||||||||||||
Expenses Before | Expenses After | Income/(Loss) to | Income/(Loss) to | |||||||||||||||||||||||
Net Assets, | Reimbursements | Reimbursements | Average Net Assets | Average Net Assets | Portfolio | |||||||||||||||||||||
End of Period | to Average | to Average | before | after | Turnover | |||||||||||||||||||||
Total Return(b) | (000) | Net Assets | Net Assets(c) | Reimbursements | Reimbursements | Rate | ||||||||||||||||||||
2.48 | % | $ | 14,749 | 1.52 | % | 1.25 | % | 2.59 | % | 2.86 | % | 48 | % | |||||||||||||
16.96 | % | $ | 16,755 | 1.57 | % | 1.25 | % | 2.58 | % | 2.89 | % | 52 | % | |||||||||||||
(9.34 | %) | $ | 12,496 | 1.60 | % | 1.25 | % | 2.68 | % | 3.03 | % | 69 | % | |||||||||||||
(3.26 | %) | $ | 24,781 | 1.59 | % | 1.25 | % | 1.66 | % | 2.00 | % | 64 | % | |||||||||||||
11.84 | % | $ | 24,666 | 1.89 | % | 1.25 | % | 1.55 | % | 2.19 | % | 60 | % | |||||||||||||
1.71 | % | $ | 2,412 | 2.28 | % | 2.00 | % | 1.85 | % | 2.13 | % | 48 | % | |||||||||||||
16.02 | % | $ | 2,999 | 2.31 | % | 2.00 | % | 1.67 | % | 1.98 | % | 52 | % | |||||||||||||
(9.95 | %) | $ | 3,165 | 2.35 | % | 2.00 | % | 1.84 | % | 2.20 | % | 69 | % | |||||||||||||
(3.93 | %) | $ | 4,696 | 2.34 | % | 2.00 | % | 0.97 | % | 1.32 | % | 64 | % | |||||||||||||
10.89 | % | $ | 4,376 | 2.71 | % | 2.00 | % | 0.71 | % | 1.41 | % | 60 | % | |||||||||||||
2.72 | % | $ | 393,127 | 1.28 | % | 1.00 | % | 2.93 | % | 3.21 | % | 48 | % | |||||||||||||
17.14 | % | $ | 304,710 | 1.32 | % | 1.00 | % | 2.84 | % | 3.16 | % | 52 | % | |||||||||||||
(8.91 | %) | $ | 209,368 | 1.36 | % | 1.00 | % | 2.93 | % | 3.30 | % | 69 | % | |||||||||||||
(2.98 | %) | $ | 150,405 | 1.35 | % | 1.00 | % | 2.09 | % | 2.43 | % | 64 | % | |||||||||||||
12.11 | % | $ | 58,653 | 1.64 | % | 1.00 | % | 1.96 | % | 2.59 | % | 60 | % | |||||||||||||
(0.51 | %) | $ | 2,064 | 2.05 | % | 1.00 | % | 1.17 | % | 2.22 | % | 157 | % | |||||||||||||
10.59 | % | $ | 1,932 | 3.83 | % | 1.00 | % | (0.51 | %) | 2.32 | % | 154 | % | |||||||||||||
6.69 | % | $ | 581 | 7.62 | %(e) | 1.00 | %(e) | (3.86 | %)(e) | 2.76 | %(e) | 86 | %(f) | |||||||||||||
(1.17 | %) | $ | 4,961 | 2.80 | % | 1.75 | % | 0.42 | % | 1.47 | % | 157 | % | |||||||||||||
9.66 | % | $ | 2,540 | 4.57 | % | 1.75 | % | (1.29 | %) | 1.53 | % | 154 | % | |||||||||||||
6.31 | % | $ | 533 | 8.56 | %(e) | 1.75 | %(e) | (4.39 | %)(e) | 2.42 | %(e) | 86 | %(f) | |||||||||||||
(0.24 | %) | $ | 39,675 | 1.80 | % | 0.75 | % | 1.42 | % | 2.47 | % | 157 | % | |||||||||||||
10.79 | % | $ | 20,080 | 3.50 | % | 0.75 | % | (0.16 | %) | 2.59 | % | 154 | % | |||||||||||||
6.88 | % | $ | 4,275 | 7.56 | %(e) | 0.75 | %(e) | (3.39 | %)(e) | 3.42 | %(e) | 86 | %(f) |
Annual Report | Annual Report | 57 |
Cullen Funds Trust | Notes to Financial Statements |
June 30, 2018 |
1. ORGANIZATION
The Cullen Funds Trust (the “Trust”) is an open end management investment company created as a Delaware business trust on March 25, 2000 and is registered under the Investment Company Act of 1940, as amended (the “1940 Act”). The Trust currently offers six separate series to investors: the Cullen International High Dividend Fund, the Cullen High Dividend Equity Fund, the Cullen Small Cap Value Fund, the Cullen Value Fund, the Cullen Emerging Markets High Dividend Fund and the Cullen Enhanced Equity Income Fund (each a “Fund” and collectively, the “Funds”). The Funds are open end, diversified management investment companies registered under the 1940 Act. The investment objectives of the Cullen International High Dividend Fund, the Cullen High Dividend Equity Fund, the Cullen Value Fund, the Cullen Emerging Markets High Dividend Fund and the Cullen Enhanced Equity Income Fund are long-term capital appreciation and current income. The investment objective of the Cullen Small Cap Value Fund is long-term capital appreciation.
The Trust offers Retail Class, Class C, Class I, Class R1 and Class R2 Shares, except the Cullen Value Fund, the Cullen Emerging Markets High Dividend Fund and the Cullen Enhanced Equity Income Fund, which offer only Retail Class, Class C and Class I shares. However, the Cullen Small Cap Value Fund has not experienced any subscriptions in Class R1 and R2 shares since inception. Each class of shares differs principally in its respective distribution expenses and shareholder servicing expenses. Each class of shares has identical rights to earnings, assets, and voting privileges, except for the class specific expenses and exclusive rights to vote on matters affecting only individual classes.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently followed by the Funds in the preparation of their financial statements. These policies are in conformity with Generally Accepted Accounting Principles in the United States (“GAAP”). Each Fund is an investment company and follows accounting and reporting guidance in the Financial Accounting Standards Board (FASB) Accounting Standards Codification Topic 946 (ASC 946).
a) | Valuation of Securities – Securities that are primarily traded on a national or foreign securities exchange are valued at the last sales price on the exchange on which they are primarily traded on the day of valuation or, if there has been no sale on such day, at the mean between the bid and asked prices. Securities primarily traded in the National Association of Securities Dealers Automated Quotation (“NASDAQ”) National Market System for which market quotations are readily available are valued using the NASDAQ Official Closing Price (“NOCP”). If the NOCP is not available, such securities are valued at the last sale price on the day of valuation, or if there has been no sale on such day, at the mean between the bid and asked prices. Money market mutual funds are valued at the net asset value (“NAV”) of shares held by the Funds on the day of valuation. Any securities or other assets for which market quotations are not readily available are valued at fair value as determined in good faith by the Valuation Committee of the Funds’ Board of Trustees under supervision of the full Board. The values for foreign securities are reported in local currency and converted to U.S. dollars using currency exchange rates at the time of valuation. Exchange rates are provided daily by recognized independent pricing agents. |
b) | Option Contracts – Option contracts shall typically be valued using reliable market quotations from the primary exchange on which the respective options are traded on the day of valuation or, if there has been no trade on such day, at the mean between the bid and asked prices. Any options for which market quotations are not readily available are valued at fair value as determined in good faith by the Valuation Committee of the Funds’ Board of Trustees under supervision of the Board, which may include a Black-Scholes model, the Cox-Rubenstein Binomial Option Pricing Model, or other appropriate option pricing model deemed appropriate. As of June 30, 2018 all written option contracts held are exchange-traded. |
c) | Participatory Notes/Warrants – The Funds may gain exposure to securities in certain foreign markets through investments in participatory notes (“P-notes”). The Funds may purchase P-notes pending ability to invest directly in a foreign market due to restrictions applicable to foreign investors or other market factors. P-notes are generally issued by banks or broker-dealers and are designed to offer a return linked to a particular underlying security. P-notes involve transaction costs, which may be higher than those applicable to the equity securities. An investment in a P-note may involve risks, including counterparty risk, beyond those normally associated with a direct investment in the underlying security. The Funds must rely on the creditworthiness of the counterparty and would have no rights against the issuer of the underlying security. Furthermore, the P-note’s performance may differ from that of the underlying security. The holder of the P-note is entitled to receive from the bank or broker-dealer an amount equal to dividends paid by the issuer of the underlying security; however, the holder is not entitled to the same rights (e.g. voting rights) as an owner of the underlying security. There is also no assurance that there will be a secondary trading market for a P-note or that the trading price of a P-note will equal the value of the underlying security. P-notes are generally valued based upon the value of a related underlying security that trades actively in the market. |
d) | Portfolio securities that are primarily traded on foreign securities exchanges are generally valued at the last reported trade or closing price of such securities on their respective exchanges, except when an occurrence subsequent to the time a value was so established is likely to have changed such value. In such an event, the fair value of those securities is determined in good faith through consideration of other factors in accordance with procedures established by, and under the general supervision of, the Board of Trustees. The Funds use a fair |
58 | www.cullenfunds.com |
Cullen Funds Trust | Notes to Financial Statements |
June 30, 2018 |
valuation model provided by independent pricing vendors, which is intended to reflect fair value when a security’s value is believed to have been materially affected by a valuation event that has occurred between the close of the exchange or market on which the security is traded and the close of the regular trading day of the NYSE. The Funds’ procedures set forth certain triggers that instruct when to use the fair valuation model. The value assigned to a security by the fair valuation model is a determination of fair value made under the Funds’ valuation procedures and under the supervision of the Board of Trustees. In such a case, a Fund’s value for a security may be different from the last sales price (or the latest closing price) and there is no guarantee that a fair valued security will be sold at the price at which a Fund is valuing the security. In such a circumstance, the affected securities would be considered Level 2 as discussed in (e) below.
e) | The Trust follows the authoritative guidance for fair value measurements. FASB ASC 820, Fair Value Measurements and Disclosures (“ASC 820”), defines fair value, establishes a framework for measuring fair value, and expands disclosure requirements regarding fair value measurements. This standard emphasizes that fair value is a market-based measurement that should be determined based on the assumptions that market participants would use in pricing an asset or liability and establishes a hierarchy that prioritizes inputs to valuation approaches used to measure fair value. |
Various inputs are used in determining the value of each Fund’s investments. These inputs are summarized in the three broad levels listed below.
Level 1 – | quoted prices in active markets for identical securities. | |
Level 2 – | other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.). Provided pre-defined triggers have been met, the Board of Trustees has approved independent pricing vendors that calculate fair valuations of international equity securities based on a number of factors that appear to correlate to the movements in the U.S. markets. | |
Level 3 – | significant unobservable inputs (including a Fund’s own assumptions in determining the fair value of investments). |
The Trust’s policy is to disclose transfers between Levels based on valuations at the end of the reporting period. The portfolio may hold securities which are periodically fair valued in accordance with the Trust’s fair value procedures. This may result in movements between Levels 1, 2 and 3 throughout the period. Pursuant to the Trust’s fair value procedures noted previously, equity securities (including exchange traded securities and open-end regulated investment companies), exchange traded derivatives (i.e. options) and money market instruments are generally categorized as Level 1 securities in the fair value hierarchy. Fixed income securities and non-exchange traded derivatives are generally categorized as Level 2 securities in the fair value hierarchy. Investments for which there are no such quotations, or for which quotations do not appear reliable, are valued at fair value as determined in accordance with procedures established by and under the general supervision of the Trustees. These valuations are typically categorized as Level 2 or Level 3 securities in the fair value hierarchy.
The following is a summary of the inputs used as of June 30, 2018 in valuing each Fund’s assets carried at fair value:
Level 1 - Unadjusted | Level 2 - Other Significant | Level 3 - Significant | ||||||||||||||
Investments in Securities at Value(1) | Quoted Prices | Observable Inputs(2) | Unobservable Inputs | Total | ||||||||||||
Cullen International High Dividend Fund | ||||||||||||||||
Common Stocks | $ | 59,446,669 | $ | 163,694,155 | $ | – | $ | 223,140,824 | ||||||||
Preferred Stock | 5,163,071 | – | – | 5,163,071 | ||||||||||||
Total | $ | 64,609,740 | $ | 163,694,155 | $ | – | $ | 228,303,895 | ||||||||
Level 1 - Unadjusted | Level 2 - Other Significant | Level 3 - Significant | ||||||||||||||
Investments in Securities at Value(1) | Quoted Prices | Observable Inputs | Unobservable Inputs | Total | ||||||||||||
Cullen High Dividend Equity Fund | ||||||||||||||||
Common Stocks | $ | 1,514,969,685 | $ | – | $ | – | $ | 1,514,969,685 | ||||||||
Exchange-Traded Funds | 116,427,403 | – | – | 116,427,403 | ||||||||||||
Total | $ | 1,631,397,088 | $ | – | $ | – | $ | 1,631,397,088 | ||||||||
Level 1 - Unadjusted | Level 2 - Other Significant | Level 3 - Significant | ||||||||||||||
Investments in Securities at Value(1) | Quoted Prices | Observable Inputs | Unobservable Inputs | Total | ||||||||||||
Cullen Small Cap Value Fund | ||||||||||||||||
Common Stocks | $ | 3,771,140 | $ | – | $ | – | $ | 3,771,140 | ||||||||
Total | $ | 3,771,140 | $ | – | $ | – | $ | 3,771,140 |
Annual Report | June 30, 2018 | 59 |
Cullen Funds Trust | Notes to Financial Statements |
June 30, 2018 |
Level 1 - Unadjusted | Level 2 - Other Significant | Level 3 - Significant | ||||||||||||||
Investments in Securities at Value(1) | Quoted Prices | Observable Inputs | Unobservable Inputs | Total | ||||||||||||
Cullen Value Fund | ||||||||||||||||
Common Stocks | $ | 33,994,752 | $ | – | $ | – | $ | 33,994,752 | ||||||||
Total | $ | 33,994,752 | $ | – | $ | – | $ | 33,994,752 |
Level 1 - Unadjusted | Level 2 - Other Significant | Level 3 - Significant | ||||||||||||||
Investments in Securities at Value(1) | Quoted Prices | Observable Inputs(2) | Unobservable Inputs | Total | ||||||||||||
Cullen Emerging Markets High Dividend Fund | ||||||||||||||||
Common Stocks | ||||||||||||||||
Austria | $ | – | $ | 4,542,118 | $ | – | $ | 4,542,118 | ||||||||
China | – | 24,541,946 | – | 24,541,946 | ||||||||||||
Greece | – | 8,627,581 | – | 8,627,581 | ||||||||||||
Hong Kong | 494,949 | 83,908,167 | – | 84,403,116 | ||||||||||||
Hungary | – | 712,867 | – | 712,867 | ||||||||||||
Indonesia | – | 14,126,921 | – | 14,126,921 | ||||||||||||
South Africa | – | 15,184,721 | – | 15,184,721 | ||||||||||||
South Korea | 4,544,155 | 48,479,758 | – | 53,023,913 | ||||||||||||
Taiwan | 20,691,558 | 29,113,846 | – | 49,805,404 | ||||||||||||
Thailand | – | 2,613,959 | – | 2,613,959 | ||||||||||||
Turkey | – | 3,399,132 | – | 3,399,132 | ||||||||||||
Vietnam | – | 1,288,088 | – | 1,288,088 | ||||||||||||
Other | 77,547,264 | – | – | 77,547,264 | ||||||||||||
Participatory Notes(3) | – | 44,903,685 | – | 44,903,685 | ||||||||||||
Total | $ | 103,277,926 | $ | 281,442,789 | $ | – | $ | 384,720,715 |
Level 1 - Unadjusted | Level 2 - Other Significant | Level 3 - Significant | ||||||||||||||
Investments in Securities at Value(1) | Quoted Prices | Observable Inputs | Unobservable Inputs | Total | ||||||||||||
Cullen Enhanced Equity Income Fund | ||||||||||||||||
Common Stocks | $ | 44,637,590 | $ | – | $ | – | $ | 44,637,590 | ||||||||
Total | $ | 44,637,590 | $ | – | $ | – | $ | 44,637,590 | ||||||||
Other Financial Instruments | ||||||||||||||||
Liabilities | ||||||||||||||||
Call Options Written | $ | (132,972 | ) | – | – | $ | (132,972 | ) | ||||||||
Total | $ | (132,972 | ) | – | – | $ | (132,972 | ) |
(1) | For detailed descriptions of country, sector and/or industry, see the accompanying Schedule of Investments. |
(2) | As discussed in d) above, the triggers in place were affected on the date of these financial statements. |
(3) | Participatory notes (P-notes) are generally valued based upon the value of a related underlying security that trades actively in the market and are classified as Level 2 in the fair value hierarchy. |
Transfers into and out of Levels 1 and 2 for the year ended June 30, 2018 were as follows:
Level 1 | Level 2 | |||||||||||||||
Cullen International High Dividend Fund | Transfer In | Transfers (Out) | Transfer In | Transfers (Out) | ||||||||||||
Common Stocks | $ | – | $ | (135,074,874 | ) | $ | 135,074,874 | $ | – | |||||||
Total | $ | – | $ | (135,074,874 | ) | $ | 135,074,874 | $ | – | |||||||
Level 1 | Level 2 | |||||||||||||||
Cullen Emerging Markets High Dividend Fund | Transfer In | Transfers (Out) | Transfer In | Transfers (Out) | ||||||||||||
Common Stocks | $ | – | $ | (161,363,696 | ) | $ | 161,363,696 | $ | – | |||||||
Total | $ | – | $ | (161,363,696 | ) | $ | 161,363,696 | $ | – |
Transfers from Level 1 to Level 2 were due to certain foreign equity prices that were applied a fair valuation adjustment factor at the end of the current fiscal year.
60 | www.cullenfunds.com |
Cullen Funds Trust | Notes to Financial Statements |
June 30, 2018 |
There were no securities classified as Level 3 securities during the period, thus, a reconciliation of assets in which significant unobservable inputs (Level 3) were used is not applicable for these Funds.
f) | Distributions to Shareholders – Dividends from net investment income, if any, are declared and paid quarterly for the Cullen International High Dividend Fund, the Cullen Small Cap Value Fund, the Cullen Value Fund, the Cullen Emerging Markets High Dividend Fund and the Cullen Enhanced Equity Income Fund and monthly for the Cullen High Dividend Equity Fund. Distributions from realized capital gains, if any, are declared and paid at least annually. |
g) | Federal Income Taxes – The Funds intend to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986, as amended, applicable to regulated investment companies and plan to distribute substantially all of their taxable income to their shareholders in a manner which results in no tax expense to the Funds. Therefore, no federal income or excise tax provision is recorded. |
As of and during the year ended June 30, 2018, the Funds did not have a liability for any unrecognized tax benefits. The Funds file U.S. federal, state, and local tax returns as required. The Funds’ tax returns are subject to examination by the relevant tax authorities until expiration of the applicable statute of limitations which is generally three years after the filing of the tax return for federal purposes and four years for most state returns. Tax returns for open years have incorporated no uncertain tax positions that require a provision for income taxes.
h) | Use of Estimates – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in the financial statements. Actual results could differ from those estimates. |
i) | Guarantees and Indemnification – In the normal course of business, the Funds enter into contracts with service providers that contain general indemnification clauses. The Funds’ maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred. Based on experience, however, the Funds expect the risk of loss to be remote. |
j) | Income and Expenses – Within each Fund, dividend income is recognized on the ex-dividend date or as soon as information is available and interest income is recognized on an accrual basis. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its respective net assets. |
k) | Foreign Exchange Contracts – As the Funds may invest in securities traded on markets outside the United States, each Fund may enter into foreign currency commitments or foreign currency exchange transactions. Purchased contracts are only used to acquire foreign currencies to facilitate purchases and sales of investment securities. Risks may arise upon entering into these transactions from the potential inability of counterparties to meet the terms of their commitments and from unanticipated movements in security prices or foreign exchange rates. The foreign currency transactions are adjusted by the daily exchange rate of the underlying currency and any gains or losses are recorded for financial statement purposes as unrealized until the settlement date. |
l) | Foreign Currency Transactions – The Funds isolate that portion of results of operations resulting from changes in foreign exchange rates on investments from fluctuations arising from changes in market prices of securities held. Such fluctuations in foreign exchange rates are included with the net realized and unrealized gain or loss from foreign currency related transactions. Reported net realized foreign exchange gains or losses arise from sales of portfolio securities, sales and maturities of short-term securities, sales of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, the difference between the amounts of dividends, interest, and foreign withholding taxes recorded on each Fund’s accounts and the U.S. dollar equivalent of the amounts actually received or paid. |
m) | Other – Investment and shareholder transactions are recorded on trade date. The Funds determine the gain or loss realized from the investment transactions by comparing the original cost of the security lot sold with the net sales proceeds on a specific identification cost basis. |
The effect of derivative instruments on the Statements of Assets and Liabilities as of June 30, 2018:
Liability Derivatives | ||||||
Statements of Assets and Liabilities Location | Fair Value | |||||
Cullen Enhanced Equity Income Fund | ||||||
Equity Contracts (Written Options) | Written options, at value | (132,972 | ) | |||
Total | $ | (132,972 | ) |
Annual Report | June 30, 2018 | 61 |
Cullen Funds Trust | Notes to Financial Statements |
June 30, 2018 |
The effect of derivatives instruments on the Statements of Operations for the year ended June 30, 2018:
Change in | ||||||||||
Unrealized | ||||||||||
Realized | Appreciation/ | |||||||||
Gain/(Loss) | (Depreciation) | |||||||||
on Derivatives | on Derivatives | |||||||||
Recognized | Recognized | |||||||||
Risk Exposure | Statements of Operations Location | in Income | in Income | |||||||
Cullen Enhanced Equity Income Fund | ||||||||||
Equity Contracts (Written Options) | Net realized gain/(loss) on written options/Net change in unrealized appreciation/(depreciation) on written options | 1,061,227 | 32,545 | |||||||
Total | $ | 1,061,227 | $ | 32,545 |
The Cullen Enhanced Equity Income Fund had the following monthly average written call option notional value during the year ended June 30, 2018:
Fund | Monthly Average Written Option Notional Value |
Cullen Enhanced Equity Income Fund | 8,249,143 |
3. CAPITAL SHARE TRANSACTIONS
Share transactions were as follows:
Year Ended | Year Ended | |||||||
June 30, 2018 | June 30, 2017 | |||||||
Cullen International High Dividend Fund | ||||||||
Retail | ||||||||
Shares sold | 305,771 | 1,598,610 | ||||||
Dividends reinvested | 49,021 | 91,461 | ||||||
Shares redeemed | (3,384,501 | ) | (1,321,249 | ) | ||||
Net increase/(decrease) in shares outstanding | (3,029,709 | ) | 368,822 | |||||
Class C | ||||||||
Shares sold | 91,332 | 106,473 | ||||||
Dividends reinvested | 4,506 | 4,507 | ||||||
Shares redeemed | (69,231 | ) | (172,975 | ) | ||||
Net increase/(decrease) in shares outstanding | 26,607 | (61,995 | ) | |||||
Class I | ||||||||
Shares sold | 9,510,811 | 7,990,460 | ||||||
Dividends reinvested | 383,307 | 285,261 | ||||||
Shares redeemed | (5,073,833 | ) | (10,167,980 | ) | ||||
Net increase/(decrease) in shares outstanding | 4,820,285 | (1,892,259 | ) | |||||
Class R1 | ||||||||
Shares sold | 415 | 95 | ||||||
Dividends reinvested | 82 | 93 | ||||||
Shares redeemed | (5,049 | ) | (146 | ) | ||||
Net increase/(decrease) in shares outstanding | (4,552 | ) | 42 | |||||
Class R2 | ||||||||
Shares sold | 349 | 865 | ||||||
Dividends reinvested | 185 | 189 | ||||||
Shares redeemed | (5,347 | ) | (6,193 | ) | ||||
Net decrease in shares outstanding | (4,813 | ) | (5,139 | ) |
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Cullen Funds Trust | Notes to Financial Statements |
June 30, 2018 |
Year Ended | Year Ended | |||||||
June 30, 2018 | June 30, 2017 | |||||||
Cullen High Dividend Equity Fund | ||||||||
Retail | ||||||||
Shares sold | 896,885 | 3,147,432 | ||||||
Dividends reinvested | 1,240,601 | 868,912 | ||||||
Shares redeemed | (8,871,905 | ) | (4,949,555 | ) | ||||
Net decrease in shares outstanding | (6,734,419 | ) | (933,211 | ) | ||||
Class C | ||||||||
Shares sold | 179,053 | 329,624 | ||||||
Dividends reinvested | 366,376 | 210,812 | ||||||
Shares redeemed | (1,706,600 | ) | (1,248,278 | ) | ||||
Net decrease in shares outstanding | (1,161,171 | ) | (707,842 | ) | ||||
Class I | ||||||||
Shares sold | 15,740,792 | 12,474,180 | ||||||
Dividends reinvested | 5,617,165 | 2,902,295 | ||||||
Shares redeemed | (16,186,122 | ) | (25,549,609 | ) | ||||
Net increase/(decrease) in shares outstanding | 5,171,835 | (10,173,134 | ) | |||||
Class R1 | ||||||||
Shares sold | 2,521 | 25,245 | ||||||
Dividends reinvested | 2,991 | 10,241 | ||||||
Shares redeemed | (11,405 | ) | (196,655 | ) | ||||
Net decrease in shares outstanding | (5,893 | ) | (161,169 | ) | ||||
Class R2 | ||||||||
Shares sold | 6,201 | 27,830 | ||||||
Dividends reinvested | 9,321 | 12,065 | ||||||
Shares redeemed | (157,146 | ) | (55,402 | ) | ||||
Net decrease in shares outstanding | (141,624 | ) | (15,507 | ) | ||||
Cullen Small Cap Value Fund | ||||||||
Retail | ||||||||
Shares sold | 6,518 | 3,050 | ||||||
Dividends reinvested | 6,814 | 255 | ||||||
Shares redeemed | (11,626 | ) | (44,013 | ) | ||||
Net increase/(decrease) in shares outstanding | 1,706 | (40,708 | ) | |||||
Class C | ||||||||
Shares sold | – | – | ||||||
Dividends reinvested | 904 | 38 | ||||||
Shares redeemed | (1,004 | ) | (1,934 | ) | ||||
Net decrease in shares outstanding | (100 | ) | (1,896 | ) | ||||
Class I | ||||||||
Shares sold | 22,237 | 12,009 | ||||||
Dividends reinvested | 48,143 | 2,507 | ||||||
Shares redeemed | (13,599 | ) | (179,020 | ) | ||||
Net increase/(decrease) in shares outstanding | 56,781 | (164,504 | ) |
Annual Report | June 30, 2018 | 63 |
Cullen Funds Trust | Notes to Financial Statements |
June 30, 2018 |
Year Ended | Year Ended | |||||||
June 30, 2018 | June 30, 2017 | |||||||
Cullen Value Fund | ||||||||
Retail | ||||||||
Shares sold | 12,911 | 4,358 | ||||||
Dividends reinvested | 3,001 | 952 | ||||||
Shares redeemed | (13,995 | ) | (26,915 | ) | ||||
Net increase/(decrease) in shares outstanding | 1,917 | (21,605 | ) | |||||
Class C | ||||||||
Shares sold | 1,363 | 1,811 | ||||||
Dividends reinvested | 1,457 | 304 | ||||||
Shares redeemed | (18,698 | ) | (2,853 | ) | ||||
Net decrease in shares outstanding | (15,878 | ) | (738 | ) | ||||
Class I | ||||||||
Shares sold | 268,559 | 434,442 | ||||||
Dividends reinvested | 158,482 | 52,383 | ||||||
Shares redeemed | (222,469 | ) | (577,698 | ) | ||||
Net increase/(decrease) in shares outstanding | 204,572 | (90,873 | ) | |||||
Cullen Emerging Markets High Dividend Fund | ||||||||
Retail | ||||||||
Shares sold | 466,852 | 698,572 | ||||||
Dividends reinvested | 50,053 | 46,765 | ||||||
Shares redeemed | (688,639 | ) | (498,541 | ) | ||||
Net increase/(decrease) in shares outstanding | (171,734 | ) | 246,796 | |||||
Class C | ||||||||
Shares sold | 49,909 | 74,330 | ||||||
Dividends reinvested | 7,146 | 9,255 | ||||||
Shares redeemed | (109,902 | ) | (137,756 | ) | ||||
Net decrease in shares outstanding | (52,847 | ) | (54,171 | ) | ||||
Class I | ||||||||
Shares sold | 13,641,465 | 12,132,236 | ||||||
Dividends reinvested | 1,086,009 | 846,209 | ||||||
Shares redeemed | (6,067,833 | ) | (6,640,406 | ) | ||||
Net increase in shares outstanding | 8,659,641 | 6,338,039 | ||||||
Cullen Enhanced Equity Income Fund | ||||||||
Retail | ||||||||
Shares sold | 170,854 | 135,683 | ||||||
Dividends reinvested | 17,509 | 8,284 | ||||||
Shares redeemed | (160,532 | ) | (18,055 | ) | ||||
Net increase in shares outstanding | 27,831 | 125,912 | ||||||
Class C | ||||||||
Shares sold | 327,098 | 184,827 | ||||||
Dividends reinvested | 15,813 | 5,591 | ||||||
Shares redeemed | (79,202 | ) | (3,045 | ) | ||||
Net increase in shares outstanding | 263,709 | 187,373 | ||||||
Class I | ||||||||
Shares sold | 2,472,531 | 1,448,342 | ||||||
Dividends reinvested | 170,426 | 56,378 | ||||||
Shares redeemed | (520,498 | ) | (34,425 | ) | ||||
Net increase in shares outstanding | 2,122,459 | 1,470,295 |
64 | www.cullenfunds.com |
Cullen Funds Trust | Notes to Financial Statements |
June 30, 2018 |
4. INVESTMENT TRANSACTIONS
Purchases and sales of investments, excluding short-term investments, for the year ended June 30, 2018 were as follows:
Proceeds from Sales of | ||||||||
Fund | Purchases of Securities | Securities | ||||||
Cullen International High Dividend Fund | $ | 96,207,653 | $ | 75,766,419 | ||||
Cullen High Dividend Equity Fund | 285,253,805 | 504,584,613 | ||||||
Cullen Small Cap Value Fund | 1,269,730 | 1,578,416 | ||||||
Cullen Value Fund | 2,715,224 | 652,881 | ||||||
Cullen Emerging Markets High Dividend Fund | 254,757,715 | 174,471,331 | ||||||
Cullen Enhanced Equity Income Fund | 79,438,707 | 55,690,617 |
5. FEDERAL TAX INFORMATION
As of June 30, 2018, the components of accumulated earnings (losses) on a tax basis were as follows:
Undistributed Net | Accumulated Net | |||||||||||||||
Investment | Realized | Unrealized | ||||||||||||||
Income/(Loss) | Gain/(Loss) | Appreciation/(Depreciation) | Total | |||||||||||||
Cullen International High Dividend Fund | $ | 1,686,261 | $ | (29,560,869 | ) | $ | 28,822,319 | $ | 947,711 | |||||||
Cullen High Dividend Equity Fund | – | 125,424,564 | 640,150,603 | 765,575,167 | ||||||||||||
Cullen Small Cap Value Fund | 102,322 | 106,333 | 675,324 | 883,979 | ||||||||||||
Cullen Value Fund | 27,845 | – | 11,472,612 | 11,500,457 | ||||||||||||
Cullen Emerging Markets High Dividend Fund | 790,488 | (27,960,390 | ) | 23,335,304 | (3,834,598 | ) | ||||||||||
Cullen Enhanced Equity Income Fund | – | 48,351 | (2,948,724 | ) | (2,900,373 | ) |
As of June 30, 2018 the costs of investments for federal tax purposes and accumulated net unrealized appreciation/(depreciation) in investments were as follows:
Cost of | ||||||||||||||||||||
Gross Appreciation | Gross Depreciation | Net | Investments for | |||||||||||||||||
(excess of value | (excess of tax cost | Appreciation/(Depreciation) | Net Unrealized | Income Tax | ||||||||||||||||
over tax cost) | over value) | of Foreign Currency | Appreciation/(Depreciation) | Purposes* | ||||||||||||||||
Cullen International High Dividend Fund | $ | 38,015,610 | $ | (9,127,608 | ) | $ | (65,683 | ) | $ | 28,822,319 | $ | 199,415,893 | ||||||||
Cullen High Dividend Equity Fund | 644,043,157 | (3,902,629 | ) | 10,075 | 640,150,603 | 991,256,560 | ||||||||||||||
Cullen Small Cap Value Fund | 944,991 | (269,667 | ) | – | 675,324 | 3,095,816 | ||||||||||||||
Cullen Value Fund | 11,567,322 | (94,710 | ) | – | 11,472,612 | 22,522,140 | ||||||||||||||
Cullen Emerging Markets High Dividend Fund | 49,487,507 | (26,124,064 | ) | (28,139 | ) | 23,335,304 | 361,357,272 | |||||||||||||
Cullen Enhanced Equity Income Fund | 1,367,414 | (4,316,138 | ) | – | (2,948,724 | ) | 47,605,480 |
* | Represents cost for federal income tax purposes and differs from the cost for financial reporting purposes due to various book-to-tax differences. Those differences primarily relate to wash sale and passive foreign investment company adjustments for the Funds. |
Annual Report | June 30, 2018 | 65 |
Cullen Funds Trust | Notes to Financial Statements |
June 30, 2018 |
The Funds may periodically make reclassifications among certain of their capital accounts as a result of the recognition and characterization of certain income and capital gain distributions determined annually in accordance with federal tax regulations, which may differ from GAAP. These principles require that permanent financial reporting and tax differences be reclassified in the capital accounts. For the Funds’ most recent year end, as a result of permanent book-to-tax differences arising from expiration of capital losses and differing treatment of certain income items, reclassification adjustments were made to increase (decrease) the amounts listed below:
Undistributed Net | Accumulated Net Realized | |||||||||||
Fund | Paid-in Capital | Investment Income/(Loss) | Gain/(Loss) | |||||||||
Cullen International High Dividend Fund | $ | (17,096,390 | ) | $ | 776,265 | $ | 16,320,125 | |||||
Cullen High Dividend Equity Fund | 11,788,858 | (800,235 | ) | (10,988,623 | ) | |||||||
Cullen Small Cap Value Fund | – | 21,540 | (21,540 | ) | ||||||||
Cullen Value Fund | – | 2 | (2 | ) | ||||||||
Cullen Emerging Markets High Dividend Fund | (1 | ) | 121,333 | (121,332 | ) | |||||||
Cullen Enhanced Equity Income Fund | – | (4,008 | ) | 4,008 |
At June 30, 2018, the following Funds had capital loss carryforwards which will reduce each Fund’s taxable income arising from future net realized gain on investments, if any, to the extent permitted by the Internal Revenue Code (the “Code”) and thus will reduce the amount of distributions to shareholders which would otherwise be necessary to relieve the Fund of any liability for federal income tax.
No Expiration | No Expiration | |||||||||||
Fund | Short-Term | Long-Term | Total | |||||||||
Cullen International High Dividend Fund | $ | 27,913,341 | $ | 349,400 | $ | 28,262,741 | ||||||
Cullen High Dividend Equity Fund | – | – | – | |||||||||
Cullen Small Cap Value Fund | – | – | – | |||||||||
Cullen Value Fund | – | – | – | |||||||||
Cullen Emerging Markets High Dividend Fund | 26,786,369 | 739,905 | 27,526,274 | |||||||||
Cullen Enhanced Equity Income Fund | – | – | – |
The Cullen International High Dividend Fund and Cullen Emerging Markets High Dividend Fund used capital loss carryovers during the period ended June 30, 2018 in the amount of $154,513 and $9,459,231, respectively.
The Cullen International High Dividend Fund and Cullen Emerging Markets High Dividend Fund elected to treat post-October capital losses of $1,298,128 and $434,116, respectively, as having been incurred in the following fiscal year June 30, 2019.
The tax composition of dividends paid during the year ended June 30, 2018 was as follows:
Long-Term Capital | ||||||||
Fund | Ordinary Income | Gain | ||||||
Cullen International High Dividend Fund | $ | 6,885,326 | $ | – | ||||
Cullen High Dividend Equity Fund | 39,239,336 | 139,573,045 | ||||||
Cullen Small Cap Value Fund | 32,722 | 642,695 | ||||||
Cullen Value Fund | 503,026 | 2,057,975 | ||||||
Cullen Emerging Markets High Dividend Fund | 13,958,037 | – | ||||||
Cullen Enhanced Equity Income Fund | 2,612,786 | 206,308 |
The tax composition of dividends paid during the year ended June 30, 2017 was as follows:
Long-Term Capital | ||||||||
Fund | Ordinary Income | Gain | ||||||
Cullen International High Dividend Fund | $ | 5,896,784 | $ | – | ||||
Cullen High Dividend Equity Fund | 46,207,668 | 50,875,841 | ||||||
Cullen Small Cap Value Fund | 2,483 | 36,620 | ||||||
Cullen Value Fund | 559,833 | 215,122 | ||||||
Cullen Emerging Markets High Dividend Fund | 9,869,833 | – | ||||||
Cullen Enhanced Equity Income Fund | 821,758 | 577 |
66 | www.cullenfunds.com |
Cullen Funds Trust | Notes to Financial Statements |
June 30, 2018 |
6. INVESTMENT ADVISORY AND OTHER AGREEMENTS
The Trust has an agreement with Cullen Capital Management, LLC (the “Investment Advisor”), with which certain officers and trustees of the Trust are affiliated, to furnish investment advisory services to the Funds. Under the terms of the agreement, the Funds will compensate the Investment Advisor for its management services at the annual rate of 1.00% of each Fund’s average daily net assets. Through October 31, 2018, the Investment Advisor has agreed to absorb expenses to the extent that the Cullen International High Dividend Fund’s total annual operating expenses (excluding taxes and acquired funds fees and expenses) exceed 1.25%, 2.00%, 1.00%, 1.75% and 1.50% of the Retail Class, Class C, Class I, Class R1 and Class R2 net assets, respectively; the Cullen High Dividend Equity Fund’s total annual operating expenses (excluding taxes and acquired funds fees and expenses) exceed 1.00%, 1.75%, 0.75%, 1.50% and 1.25% of the Retail Class, Class C, Class I, Class R1 and Class R2 net assets, respectively; and the Cullen Small Cap Value Fund’s total annual operating expenses (excluding taxes and acquired funds fees and expenses) exceed 1.25%, 2.00%, 1.00%, 1.75% and 1.50% of the Retail Class, Class C, Class I, Class R1 and Class R2 net assets, respectively; the Cullen Value Fund’s total annual operating expenses (excluding taxes and acquired funds fees and expenses) exceed 1.00%, 1.75% and 0.75% of the Retail Class, Class C and Class I net assets, respectively; the Cullen Emerging Markets High Dividend Fund’s total annual operating expenses (excluding taxes and acquired funds fees and expenses) exceed 1.25%, 2.00% and 1.00% of the Retail Class, Class C, and Class I net assets, respectively; and the Cullen Enhanced Equity Income Fund’s total annual operating expenses (excluding taxes and acquired funds fees and expenses) exceed 1.00%, 1.75% and 0.75% of the Retail Class, Class C and Class I net assets, respectively. For a period of three years after the year in which the Investment Advisor reimburses expenses, the Investment Advisor may seek reimbursement on a class-by-class basis from the respective Fund to the extent that total annual individual Fund operating expenses are less than the expense limitation in effect at the time of the reimbursement.
Annual Report | June 30, 2018 | 67 |
Cullen Funds Trust | Notes to Financial Statements |
June 30, 2018 |
As of June 30, 2018, reimbursed expenses for each Fund subject to potential recovery by year of expiration are as follows:
Expiring June 30, | ||||||||||||
Fund/Class | 2019 | 2020 | 2021 | |||||||||
Cullen International High Dividend Fund | ||||||||||||
Retail | $ | 85,177 | $ | 82,067 | $ | 36,440 | ||||||
Class C | 6,692 | 7,111 | 6,769 | |||||||||
Class I | 403,411 | 395,222 | 505,336 | |||||||||
Total | $ | 495,280 | $ | 484,400 | $ | 548,545 | ||||||
Cullen High Dividend Equity Fund | ||||||||||||
Retail | $ | 1,152,409 | $ | 1,059,245 | $ | 817,204 | ||||||
Class C | 285,984 | 287,941 | 244,321 | |||||||||
Class I | 4,792,166 | 4,698,693 | 4,779,308 | |||||||||
Class R1 | 2,636 | 1,725 | 326 | |||||||||
Class R2 | 10,899 | 11,391 | 5,196 | |||||||||
Total | $ | 6,244,094 | $ | 6,058,995 | $ | 5,846,355 | ||||||
Cullen Small Cap Value Fund | ||||||||||||
Retail | $ | 39,342 | $ | 32,154 | $ | 31,934 | ||||||
Class C | 3,930 | 3,626 | 3,710 | |||||||||
Class I | 206,551 | 202,633 | 230,527 | |||||||||
Total | $ | 249,823 | $ | 238,413 | $ | 266,171 | ||||||
Cullen Value Fund | ||||||||||||
Retail | $ | 11,604 | $ | 6,339 | $ | 6,697 | ||||||
Class C | 4,151 | 4,270 | 4,271 | |||||||||
Class I | 335,514 | 315,159 | 349,176 | |||||||||
Total | $ | 351,269 | $ | 325,768 | $ | 360,144 | ||||||
Cullen Emerging Markets High Dividend Fund | ||||||||||||
Retail | $ | 49,200 | $ | 45,550 | $ | 46,120 | ||||||
Class C | 12,267 | 9,785 | 7,770 | |||||||||
Class I | 574,646 | 795,536 | 997,088 | |||||||||
Total | $ | 636,113 | $ | 850,871 | $ | 1,050,978 | ||||||
Cullen Enhanced Equity Income Fund | ||||||||||||
Retail | $ | 21,231 | $ | 30,477 | $ | 26,674 | ||||||
Class C | 18,382 | 25,236 | 47,424 | |||||||||
Class I | 147,430 | 223,010 | 318,314 | |||||||||
Total | $ | 187,043 | $ | 278,723 | $ | 392,412 |
ALPS Fund Services, Inc. serves as the Funds’ administrator and fund accountant. Brown Brothers Harriman serves as the Funds’ custodian.
7. DISTRIBUTION PLAN
The Funds have adopted a Service and Distribution Plan (the “Plan”) pursuant to Rule 12b-1 under the 1940 Act. The Plan authorizes payments by the Funds in connection with the distribution of shares at an annual rate, as determined from time to time by the Board of Trustees, of up to 0.25%, 1.00%, 0.50% and 0.25% of the average daily net assets of Retail Class, Class C, Class R1, and Class R2, respectively. Amounts paid under the Plan to the Funds’ distributor, ALPS Distributors, Inc., compensate the distributor for any activities or expenses primarily intended to result in the sale of shares of the Funds. This may include, but is not limited to, advertising, compensation for sales and marketing activities of financial institutions and others such as dealers and distributors, shareholder account servicing, the printing and mailing of prospectuses to other than current shareholders and the printing and mailing of sales literature. The expenses of the Plan are reflected as distribution fees in the Statement of Operations.
68 | www.cullenfunds.com |
Cullen Funds Trust | Notes to Financial Statements |
June 30, 2018 |
8. SHAREHOLDER SERVICES FEE
The Trust has adopted a Shareholder Servicing Plan (the “Servicing Plan”) with respect to the Funds’ Class R1 and Class R2 shares. For providing certain account administration services to participants in retirement plans that are beneficial owners of such shares, the Servicing Plan authorizes each Fund to compensate plan administrators or other intermediaries up to 0.25% of the average daily net assets of Class R1 and Class R2. The expenses of the Servicing Plan are reflected as shareholder service fees in the Statement of Operations.
9. FOREIGN INVESTMENT RISK
The Trust invests in securities traded on exchanges outside the United States. Further, each Fund invests in securities issued by companies domiciled outside the United States, which may be subject to political, social and economic uncertainty to a greater extent and may also be affected by currency controls; different accounting, auditing, financial reporting, and legal standards and practices in some countries; expropriation; changes in tax policy; greater market volatility; differing securities market structures; higher transaction costs; and various administrative difficulties, such as delays in clearing and settling portfolio transactions or in receiving payment of dividends.
10. SIGNIFICANT SHAREHOLDERS
At June 30, 2018, the Cullen Small Cap Value Fund had two affiliated shareholders who held 59.24% and 13.11% of the Fund’s outstanding shares, the Cullen Value Fund had two affiliated shareholders who held 18.18% and 7.31% of the Fund’s outstanding shares, and the Cullen Enhanced Equity Income Fund had two affiliated shareholders who held 19.09% and 4.44% of the Fund’s outstanding shares. Investment activities of these shareholders could have a material effect on the respective Funds.
Annual Report | June 30, 2018 | 69 |
Cullen Funds Trust | Report of Independent Registered Public Accounting Firm |
To the Board of Trustees of Cullen Funds Trust and Shareholders of Cullen International High Dividend Fund, Cullen High Dividend Equity Fund, Cullen Small Cap Value Fund, Cullen Value Fund, Cullen Emerging Markets High Dividend Fund and Cullen Enhanced Equity Income Fund
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of Cullen International High Dividend Fund, Cullen High Dividend Equity Fund, Cullen Small Cap Value Fund, Cullen Value Fund, Cullen Emerging Markets High Dividend Fund and Cullen Enhanced Equity Income Fund (constituting Cullen Funds Trust, hereafter collectively referred to as the "Funds") as of June 30, 2018, the related statements of operations for the year ended June 30, 2018, the statements of changes in net assets for each of the two years in the period ended June 30, 2018 including the related notes, and the financial highlights for each of the periods indicated therein (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of each of the Funds as of June 30, 2018, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended June 30, 2018 and each of the financial highlights for each of the periods indicated therein in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess to risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of June 30, 2018 by correspondence with the custodian and brokers; when replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
Denver, Colorado
August 23, 2018
We have served as the auditor of one or more investment companies in Cullen Funds Trust since 2000.
70 | www.cullenfunds.com |
Cullen Funds Trust | Additional Information |
June 30, 2018 (Unaudited) |
This report and the financial statements contained herein are submitted for the general information of the shareholders of the Funds. This report may be distributed to others only if preceded or accompanied by a current prospectus. The Funds are distributed by ALPS Distributors, Inc., a member of the FINRA.
How to Obtain a Copy of the Funds Proxy Voting Policy
A description of the policies and procedures that the Funds uses to determine how to vote proxies relating to portfolio securities is available (1) without charge upon request by calling 1-877-485-8586; (2) at www.cullenfunds.com; and (3) on the U.S. Securities and Exchange Commission’s website at www.sec.gov. The Funds’ proxy voting record is available on the SEC’s website at www.sec.gov no later than August 31 for the prior 12 months ended June 30.
Quarterly Filings on Form N-Q
The Funds files their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Funds’ Form N-Q is available on the SEC’s website at www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. and information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330. Information included in the Funds’ N-Q will also be available upon request by calling 1-877-485-8586.
Unaudited Section Tax Designations
Pursuant to Section 852(b)(3) of the Internal Revenue Code, Cullen Small Cap Value Fund designates $642,695; Cullen Value Fund designates $2,057,975; Cullen Enhanced Equity Fund designates $206,308 and Cullen High Dividend Equity Fund designates $139,573,045 as long-term capital gain distributions. For Cullen High Dividend Equity Fund, $11,061,936 of earnings and profits were distributed to shareholders on redmeptions for the fiscal year ended June 30, 2018.
The Funds designate the following as percentages of taxable ordinary income distributions, up to maximum amount allowable, for the calendar year ended December 31, 2017:
Dividends Received Deduction | Qualified Dividend Income Percentage | |||||||
Cullen International High Dividend Fund | 0.00 | % | 85.08 | % | ||||
Cullen High Dividend Equity Fund | 99.92 | % | 100.00 | % | ||||
Cullen Small Cap Value Fund | 73.96 | % | 75.83 | % | ||||
Cullen Value Fund | 100.00 | % | 100.00 | % | ||||
Cullen Emerging Markets High Dividend Fund | 0.00 | % | 56.67 | % | ||||
Cullen Enhanced Equity Fund | 26.59 | % | 33.18 | % |
In early 2018, if applicable, shareholders of record received this information for the distributions paid to them by the Funds during the calendar year 2017 via Form 1099. The Funds will notify shareholders in early 2019 of amounts paid to them by the Funds, if any, during the calendar year 2018.
The Funds designate the following for federal income tax purposes for the year ended June 30, 2018:
Foreign Taxes Paid | Foreign Source income | |||||||
Cullen International High Dividend Fund | 828,661 | 10,179,370 | ||||||
Cullen Emerging Markets High Dividend Fund | 1,221,145 | 16,209,170 |
Annual Report | June 30, 2018 | 71 |
Cullen Funds Trust | Board of Trustees |
June 30, 2018 (Unaudited) |
INTERESTED TRUSTEE | ||||||||||
Other | ||||||||||
Position(s) | Term of Office | No. of Funds | Directorships | |||||||
Name, Address | Held with | and Length of | in Complex | held by | ||||||
and Year of Birth | Trust | Time Served** | Principal Occupation(s) During Past 5 Years | Overseen | Trustees | |||||
James P. Cullen*† Cullen Capital Management LLC 645 Fifth Avenue New York, NY 10022 Born: 1938 | Trustee and CEO | Since 2000 | Chairman and CEO, Controlling Member and Portfolio Manager, Cullen Capital Management LLC, since May 2000; Chairman and CEO, Schafer Cullen Capital Management, Inc., a registered investment adviser, from December 1982 to present. | 6 | None | |||||
INDEPENDENT TRUSTEES | ||||||||||
Robert J. Garry c/o Cullen Capital Management LLC 645 Fifth Avenue New York, NY 10022 Born: 1945 | Independent Trustee | Since 2000 | Retired since July 2010, Executive Vice President/ Chief Financial Officer, New York City Off-Track Betting Corporation, November 2007 to July 16, 20142010; Corporate Controller, Yonkers Racing Corporation, 2001 to September 2007; Chief Operations Officer, The Tennis Network Inc., March 2000 to 2001; Senior Vice President and Chief Financial Officer, National Thoroughbred Racing Association, 1998 to 2000; Director of Finance and Chief Financial Officer, United States Tennis Association, prior thereto. | 6 | None | |||||
Stephen G. Fredericks c/o Cullen Capital Management LLC 645 Fifth Avenue New York, NY 10022 Born: 1942 | Independent Trustee | Since 2002 | Retired since July 2009, Institutional Trader, Raymond James & Associates, February 2002 to July 2009; Institutional Trader, ABN AMRO Inc, January 1995 to May 2001. | 6 | None | |||||
James H. Wildman c/o Cullen Capital Management LLC 645 Fifth Avenue New York, NY 10022 Born: 1940 | Independent Trustee | Since 2012 | Retired since 2001; Managing Partner, King & Spalding, New York City, 1992 to 2001. Managing Partner, King & Spalding LLP, 1989 to 1992. | 6 | None | |||||
Daniel J. Campbell c/o Cullen Capital Management LLC 645 Fifth Avenue New York, NY 10022 Born: 1945 | Independent Trustee | Since 2010 | Retired since 2003; Managing Director Global Hybrid Capital Products, Deutsche Bank 2001 to 2003; Managing Director Preferred Bond Trading / Global Head Fixed Income Capital Products, Merrill Lynch 1983 to 2001. | 6 | None | |||||
Jeffrey Hemmings c/o Cullen Capital Management LLC 645 Fifth Avenue New York, NY 10022 Born: 1941 | Independent Trustee | Since 2015 | Retired since November, 2012; Account Vice President, UBS Financial Services, Inc, 1988-2012, Account Executive, EFHutton and Co,. Inc. 1970-1988. | 6 | None | |||||
Walter H Forman c/o Cullen Capital Management LLC 645 Fifth Avenue New York, NY 10022 Born: 1941 | Independent Trustee | Since 2016 | Diagnostic Radiologist. Co-owner of Palm Beach Radiology (Palm Beach Florida), a medical imaging center since June 2007. | 6 | None |
72 | www.cullenfunds.com |
Cullen Funds Trust | Board of Trustees |
June 30, 2018 (Unaudited) |
OFFICERS | ||||||||||
Other | ||||||||||
Position(s) | Term of Office | No. of Funds | Directorships | |||||||
Name, Address | Held with | and Length of | in Complex | held by | ||||||
and Year of Birth | Trust | Time Served** | Principal Occupation(s) During Past 5 Years | Overseen | Trustees | |||||
Brooks H. Cullen† Cullen Capital Management LLC 645 Fifth Avenue New York, NY 10022 Born: 1967 | Vice President | Since 2000 | Vice Chairman and Portfolio Manager, Cullen Capital Management LLC, since May 2000; Vice Chairman and Portfolio Manager Schafer Cullen Capital Management, Inc., from 1996 to present. | N/A | N/A | |||||
Rahul D. Sharma Cullen Capital Management LLC 645 Fifth Avenue NewYork, NY 10022 Born: 1970 | Secretary | Since 2000 | Executive Director, Cullen Capital Management LLC, since May 2000; Portfolio Manager, Cullen Capital Management LLC, 2007 to present; Executive Director and Portfolio Manager, Schafer Cullen Capital Management, Inc., 1998 to present. | N/A | N/A | |||||
Steven M. Mullooly Cullen Capital Management LLC 645 Fifth Avenue New York, NY 10022 Born: 1964 | Chief Compliance Officer | Since 2006 | Chief Compliance Officer, Cullen Capital Management LLC and Schafer Cullen Capital Management, Inc. since August 2006; Chief Compliance Officer, Ladenburg Thalmann & Co., Inc., Ladenburg Thalmann Asset Management, and Ladenburg Thalmann Europe from November 2004 to June 2006; Vice President – Compliance, Donaldson Lufkin and Jenrette and Co., from July 2000 to June 2004. | N/A | N/A | |||||
Jeffrey T. Battaglia Cullen Capital Management LLC 645 Fifth Avenue New York, NY 10022 Born: 1978 | Treasurer | Since 2007 | Chief Operating Officer, Cullen Capital Management LLC and Schafer Cullen Capital Management, Inc., since February 2007; Manager, KPMG LLP, from September 2001 to February 2007. | N/A | N/A |
* | James P. Cullen is an “interested person” of the Trust (as that term is defined in the Investment Company Act) because of his affiliation with the Adviser. |
** | Positions are held indefinitely until resignation or termination. |
† | James P. Cullen and Brooks H. Cullen are father and son, respectively. |
The Statement of Additional Information contains additional information about the Trustees and is available, free of charge, upon request by calling 1-877-485-8586.
Annual Report | June 30, 2018 | 73 |
Cullen Funds Trust | Board Approval of Investment Advisory Agreements |
June 30, 2018 (Unaudited) |
At the May 18, 2018 meeting (“Meeting”) of the Board of Trustees (the “Board”) of Cullen Funds Trust (the “Trust”), the Board, including those Trustees who are not “interested persons” of the Trust (the “Independent Trustees”), as that term is defined in the Investment Company Act of 1940, as amended (the “1940 Act”), approved Cullen Capital Management LLC (the “Adviser”) to continue to serve as investment adviser to the Cullen High Dividend Equity Fund (the “High Dividend Fund”), the Cullen International High Dividend Fund (the “International Fund”), the Cullen Small Cap Value Fund (the “Small Cap Fund”), the Cullen Value Fund (the “Value Fund”), the Cullen Emerging Markets High Dividend Fund (the “Emerging Markets Fund”), and the Cullen Enhanced Equity Income Fund (the “Equity Income Fund”) (each, a “Fund” and collectively, the “Funds”) and approved the continuation of the separate investment advisory agreements between the Adviser and the Trust with respect to each Fund (the “Investment Advisory Agreements”), upon the same terms and conditions set forth therein, for an additional one-year period. The Independent Trustees met in several executive sessions (on February 15, 2018; May 9, 2018; and at the Meeting) and discussed the approval of the Investment Advisory Agreements with counsel at each such executive session, who provided assistance and advice.
In considering the approval of the continuation of the Investment Advisory Agreements for the Funds, the Independent Trustees reviewed, among other things, the following items about the Adviser and the Funds, including: (i) copies of the Investment Advisory Agreements with respect to the Adviser’s management of each Fund; (ii) information describing the nature, quality, and extent of the services the Adviser will provide to each Fund, and the fee the Adviser receives from each Fund; (iii) a memorandum from counsel to the Independent Trustees on the responsibilities of trustees in considering advisory arrangements under the 1940 Act; and (iv) a report containing data compiled by FUSE Research Network (“FUSE”), comparing the advisory fees and expenses of each Fund with fees and expenses and performance of other funds with similar investment objectives and policies and to advisory fees paid by other clients of the Adviser. In addition, the Independent Trustees submitted to the Adviser a list of queries regarding the operations, management and functions of the Adviser as they relate to the services provided under the Investment Advisory Agreements and received feedback from the Adviser at the May 9, 2018 executive session and at the Meeting on each such question submitted.
In considering the approval of the continuation of the Investment Advisory Agreements, the Independent Trustees focused on and analyzed the factors that the Independent Trustees deemed relevant, including, among other things: the nature, quality, and extent of the services provided to each Fund by the Adviser; the personnel and operations of the Adviser; the investment performance of the Funds and the Adviser; the cost of services to be provided and profitability of the Adviser under the Investment Advisory Agreements; and any “fall-out” benefits to the Adviser (i.e., the ancillary benefits realized due to a relationship with the Trust); the extent to which economies of scale would be realized as the Funds grow; and whether the fee levels reflect these economies of scale for the benefit of Fund investors. In particular, the Independent Trustees considered and discussed the following with respect to each Fund:
(a) The nature, extent, and quality of services provided to each Fund by the Adviser. The Independent Trustees reviewed the services that the Adviser provides to each Fund. In connection with the investment advisory services provided to each Fund, the Independent Trustees noted the responsibilities that the Adviser has as the Funds’ investment adviser, including, among other things: portfolio management and asset allocation; overall supervisory responsibility for the general management and investment of each Fund’s portfolio securities; and ultimate responsibility, subject to oversight by the Board, for the implementation of Board directives as they relate to the Funds.
The Independent Trustees reviewed the Adviser’s experience, resources (including assets and similar financial data), profitability from managing the Funds, and strengths in managing the Funds. Based on their consideration and review of the foregoing information, the Independent Trustees determined that each Fund was likely to continue to benefit from the nature, quality, and extent of these services, as well as the Adviser’s ability to render such services based on its experience, operations and resources.
(b) Comparison of services provided and fees charged by the Adviser and other investment advisors to similar clients, and the cost of the services provided and profits realized by the Adviser from the relationship with the Funds. The Independent Trustees then compared both the services rendered and the fees paid pursuant to the Investment Advisory Agreements to contracts of other registered investment advisers providing services to similar funds. In particular, the Independent Trustees compared each Fund’s advisory fee and expense ratio to the advisory fees and expense ratios of other investment companies considered to be in such Fund’s peer group as chosen by FUSE. The Independent Trustees reviewed such comparisons on a quarterly basis as presented by FUSE but also such comparisons on a longer-term basis that reflected the performance of both the Funds and such peer funds over such period. The Independent Trustees noted that the Adviser has entered into expense limitation agreements whereby the Adviser reimburses expenses and/or waives fees to keep the expenses through October 31, 2019 for the: (i) High Dividend Fund’s Retail Class, Class C, Class I, Class R1 and Class R2 shares to 1.00%, 1.75%, 0.75%, 1.50% and 1.25%, respectively, of the average net asset value of such respective Class; (ii) International Fund’s Retail Class, Class C, Class I, Class R1 and Class R2 shares of the Fund to 1.25%, 2.00%, 1.00%, 1.75% and 1.50% respectively, of the average net asset value of such respective Class; (iii) Small Cap Fund’s Retail Class, Class C, Class I, Class R1 and Class R2 shares of the Fund to 1.25%, 2.00%, 1.00%, 1.75% and 1.50% respectively, of the average net asset value of such respective Class; (iv) Emerging Markets Fund’s Retail Class, Class C, Class I, of the Fund to 1.25%, 2.00%, and 1.00%, respectively, of the average net asset value of such respective Class; (v) Value Fund’s Retail Class, Class C, Class I, to 1.00%, 1.75%, and 0.75%, respectively, of the average net asset value of such respective Class; and (vi) Equity Income Fund’s Retail Class, Class C, and Class I, to 1.00%, 1.75%, and 0.75%, respectively, of the average net asset value of such respective Class.
74 | www.cullenfunds.com |
Cullen Funds Trust | Board Approval of Investment Advisory Agreements |
June 30, 2018 (Unaudited) |
The Board also received and considered information about the fee rates charged to other accounts managed by the Adviser, including institutional accounts, and whether the Adviser was required to provide comparable, or lesser services, to such other accounts. The Independent Trustees noted that except for the High Dividend Fund, the International Fund and the Value Fund, the actual and contractual investment advisory fees of each Fund were within the range of the actual and contractual investment advisory fees charged by other funds in such Fund’s peer group and that the fees charged by all Funds were reasonable in light of the overall scope of services provided by the Adviser to the Funds.
After comparing each Fund’s fees with those of other funds in such Fund’s peer group and considering the information about the fee rates charged to other accounts managed by the Adviser, and in light of the nature, quality, and extent of services provided by the Adviser and the costs incurred by the Adviser in rendering those services, the Independent Trustees concluded that the level of fees paid to the Adviser with respect to each Fund were fair and reasonable.
(c) The Adviser’s profitability and the extent to which economies of scale would be realized as each Fund grows and whether fee levels would reflect such economies of scale. The Independent Trustees discussed potential economies of scale and discussed the Adviser’s profitability, including the income it received in connection with its management of the Funds. The Independent Trustees discussed with representatives of the Adviser the costs of, and profitability to, the Adviser in connection with its serving as investment adviser to each Fund, including operational costs incurred.
(d) Investment performance of the Funds. The Independent Trustees considered the investment performance of the Funds on a quarterly basis and for the most recent fiscal year as a whole. In particular, the Independent Trustees considered the investment performance of the Funds relative to their stated objectives and the Adviser’s success in reaching such objectives. The Independent Trustees considered each Fund’s investment performance, including risk-adjusted returns, compared to the benchmark index that each Fund uses for comparison in its prospectus and shareholder reports and noted that each Fund’s performance was comparable to its respective benchmarks.
(e) Expenses. The Independent Trustees considered each Fund’s total expense ratio (both including and excluding each Fund’s fee waiver and expense limitation arrangement) compared to the total expense ratios (both including and excluding each fund’s fee waiver and expense limitation arrangement) of other funds in each Fund’s peer group. The Independent Trustees noted that each Fund’s total expense ratio (including the Fund’s fee waiver and expense limitation arrangement) was within the range of the total expense ratios of other funds in each Fund’s peer group (including the peer group’s fee waiver and expense limitation arrangements), taking into account the performance of the Funds versus such peer group over a quarterly and longer-term basis.
Conclusion. After extensive discussion, it was determined that no single factor was determinative to the decision of the Independent Trustees. Based on the foregoing and such other matters as were deemed relevant, the Independent Trustees concluded that the advisory fee rates and total expense ratios were reasonable in relation to the services provided by the Adviser to the High Dividend Fund, International Fund, Small Cap Fund, Emerging Markets Fund, Value Fund, and Equity Income Fund, as well as the costs incurred and benefits gained by the Adviser in providing such services. The Independent Trustees also found the investment advisory fees to be reasonable in comparison to the fees charged by advisers to other comparable funds of similar size. As a result, the Independent Trustees concluded that the continuation of each Investment Advisory Agreement was in the best interests of each Fund.
Annual Report | June 30, 2018 | 75 |
INVESTMENT ADVISOR
Cullen Capital Management LLC
645 Fifth Avenue
New York, NY 10022
DISTRIBUTOR
ALPS Distributors, Inc.
1290 Broadway, Suite 1100
Denver, CO 80203
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
PricewaterhouseCoopers LLP
1900 16th Street, Suite 1600
Denver, CO 80202
LEGAL COUNSEL
Sidley Austin LLP
One South Dearborn Street
Chicago, IL 60603
ADMINISTRATOR, ACCOUNTANT, TRANSFER AGENT AND DIVIDEND DISBURSING AGENT
ALPS Fund Services, Inc.
1290 Broadway, Suite 1100
Denver, CO 80203
CUSTODIAN
Brown Brothers Harriman
50 Post Office Square
Boston, MA 02110
Must be accompanied or preceded by a prospectus.
ALPS Distributors, Inc. is the Distributor for Cullen Funds.
Item 2. | Code of Ethics. |
(a) | The Registrant, as of the end of the period covered by the report, has adopted a code of ethics that applies to the Registrant's principal executive officer, principal financial officer, principal accounting officer or controller or any persons performing similar functions, regardless of whether these individuals are employed by the registrant or a third party, on behalf of the Registrant. |
(b) | For purposes of this item, “code of ethics” means written standards that are reasonably designed to deter wrongdoing and to promote: |
(1) | Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; |
(2) | Full, fair, accurate, timely, and understandable disclosure in reports and documents that a registrant files with, or submits to, the Commission and in other public communications made by the registrant; |
(3) | Compliance with applicable governmental laws, rules, and regulations; |
(4) | The prompt internal reporting of violations of the code to an appropriate person or persons identified in the code; and |
(5) | Accountability for adherence to the code. |
(c) | During the period covered by this report, no amendments were made to the provisions of the code of ethics adopted in 2(a) above. |
(d) | During the period covered by this report, no implicit or explicit waivers to the provisions of the code of ethics adopted in 2(a) above were granted. |
(e) | Not applicable. |
(f) | The Registrant's Code of Ethics is attached as an Exhibit hereto. |
Item 3. | Audit Committee Financial Expert. |
(a)(1) | The Registrant’s board of trustees has determined that the Registrant has at least one audit committee financial expert serving on the audit committee. |
(a)(2) | The audit committee financial expert is Robert G. Garry, who is independent as defined in Form N-CSR Item 3(a)(2). |
Item 4. | Principal Accountant Fees and Services. |
(a) | Audit Fees: For the Registrant’s fiscal years ended June 30, 2018 and June 30, 2017, the aggregate fees billed for professional services rendered by the principal accountant for the audit of the Registrant’s annual financial statements were $184,500 and $190,100, respectively. |
(b) | Audit-Related Fees: For the Registrant’s fiscal years ended June 30, 2018 and June 30, 2017, the aggregate fees billed for professional services rendered by the principal accountant for assurance and related services that were reasonably related to the performance of the audit of the Registrant’s financial statements not otherwise included under “Audit Fees” above were $0 and $0, respectively. |
(c) | Tax Fees: For the Registrant’s fiscal years ended June 30, 2018 and June 30, 2017, aggregate fees of $74,875 and $72,695, respectively, were billed for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning. |
(d) | All Other Fees: For the Registrant’s fiscal years ended June 30, 2018 and June 30, 2017, aggregate fees of $0 and $29,794, respectively, were billed to Registrant by the principal accountant for services other than the services reported in paragraphs (a) through (c) of this item. These services were related to International Reclaim Tax Services. |
(e)(1) | Audit Committee Pre-Approval Policies and Procedures: All services to be performed by the Registrant's principal auditors must be pre-approved by the Registrant's audit committee. |
(e)(2) | No services described in paragraphs (b) through (d) were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X. |
(f) | Not applicable. |
(g) | The aggregate non-audit fees billed by the Registrant’s principal accountant for the fiscal years ended June 30, 2018 and June 30, 2017 were $0 and $0, respectively. |
(h) | Not applicable. |
Item 5. | Audit Committee of Listed Registrants. |
Not applicable.
Item 6. | Schedule of Investments. |
(a) | The Schedule of Investments is included as part of the Report to Shareholders filed under Item 1 of this form. |
(b) | Not Applicable. |
Item 7. | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. |
Not applicable to the Registrant.
Item 8. | Portfolio Managers of Closed-End Management Investment Companies. |
Not applicable to the Registrant.
Item 9. | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers. |
Not applicable to the Registrant.
Item 10. | Submission of Matters to Vote of Security Holders. |
There have been no material changes to the procedures by which shareholders may recommend nominees to the Registrant’s Board of Trustees.
Item 11. | Controls and Procedures. |
(a) | The Registrant’s principal executive officer and principal financial officer have evaluated the Registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) within 90 days of this filing and have concluded that the Registrant’s disclosure controls and procedures were effective, as of that date. |
(b) | There was no change in the Registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940, as amended) during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting. |
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Companies.
Not Applicable.
Item 13. | Exhibits. |
(a) | File the exhibits listed below as part of this Form. |
(a)(1) | Any code of ethics, or amendment thereto, that is the subject of the disclosure required by Item 2, to the extent that the registrant intends to satisfy the Item 2 requirements through filing of an exhibit. |
(a)(2) | Certifications required by Item 12(a)(2) of Form N-CSR are filed herewith as EX-99.CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
CULLEN FUNDS TRUST
By: | /s/ James P. Cullen | |
James P. Cullen | ||
Chief Executive Officer | ||
Date: | September 7, 2018 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/ James P. Cullen | |
James P. Cullen | ||
Chief Executive Officer | ||
Date: | September 7, 2018 |
By: | /s/ Jeffrey T. Battaglia | |
Jeffrey T. Battaglia | ||
Treasurer | ||
Date: | September 7, 2018 |