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: 877-485-8586
Date of fiscal year end: June 30
Date of reporting period: July 1, 2015 – December 31, 2015
Item 1. | Report to Shareholders. |
Cullen Funds |
SEMI-ANNUAL REPORT
DECEMBER 31, 2015
Cullen International High Dividend | Cullen High Dividend Equity | Cullen Small Cap Value
Cullen Value | Cullen Emerging Markets High Dividend Equity | Cullen Enhanced Equity Income
Cullen Funds Trust | Shareholder Letter |
December 31, 2015 (Unaudited) |
February 29, 2016
Retail Class Performance for the six months ended December 31, 2015 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 | 3.41% | |||
Russell 1000 Value Index | -3.24% | |||
Cullen International High Dividend Fund | -6.88% | |||
MSCI EAFE Index | -5.92% | |||
Cullen Small Cap Value Fund | -14.19% | |||
Russell 2500 Value Index | -7.08% | |||
Cullen Value Fund | -3.21% | |||
Russell 1000 Value Index | -3.24% | |||
Cullen Emerging Markets High Dividend Fund | -14.40% | |||
MSCL Emerging Markets Index | -17.10% | |||
Cullen Enhanced Equity Income Fund* | -0.30% | |||
CBOW S&P 500 BuyWrite Index | 0.12% |
* Enhanced Equity Income Fund launched December 15, 2015.
Please refer to the financial highlights for each Fund’s respective share class’ performance on pages 26-33 of this semi-annual report.
Portfolio Review-High Dividend Fund
The High Dividend Fund’s performance versus the Russell 1000 Value Index during the period was primarily due to stock selection effects, most notably in the Industrials, Consumer Staples, and Information Technology sectors. Our underweight allocation to the Energy sector and overweight allocation to the Consumer Staples sector also contributed to relative performance. The Fund’s average cash balance of approximately 4% also contributed positively to relative performance during the period.
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 stock selection, most notably in the Health Care and Telecommunications sectors with stock selection effects in the Consumer Staples and Materials sectors and the Fund’s relative overweight to the Consumer Staples and Health Care sectors partially offsetting the aforementioned impacts. The Fund’s average cash balance of approximately 5% also contributed positively to 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 sector allocation impacts, most notably the Fund’s overweight allocation to the Industrials sector and underweight allocation to the Utilities sector. Stock selection in the Materials and Consumer Discretionary sectors further contributed to relative performance with stock selection in the Industrials and Energy sectors partially offsetting the aforementioned impacts. The Fund’s average cash balance of approximately 3% also contributed positively to relative performance during the period.
Portfolio Review-Value Fund
The Value Fund’s performance versus the Russell 1000 Value Index during the period was primarily due to sector allocation impacts, most notably due to the Fund’s underweight allocation to the Energy and Materials sectors and overweight allocation to the Industrials sector. Stock selection impacts within the Information Technology and Industrials sectors also contributed to relative performance as did the Fund’s average cash balance of approximately 19% during the period.
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 positive stock selection impact in the Financials, Consumer Staples, and Industrials sectors. The Fund’s underweight allocation to the Energy and Materials sectors and overweight allocation to the Consumer Discretionary sector also contributed positively to relative performance as did the Fund’s average cash balance of approximately 5% during the period.
Semi-Annual Report | December 31, 2015 | 1 |
Cullen Funds Trust | Shareholder Letter |
December 31, 2015 (Unaudited) |
Portfolio Review-Enhanced Equity Income Fund
Launched on December 15, 2015, the Enhanced Equity Income Fund incorporates similar portfolio construction as the High Dividend Fund with the additional component of writing covered call options to receive call premiums aimed at enhancing cash income received into the Fund. During the two weeks it operated during the period, stock selection in the Financials and Information Technology sector contributed notably to relative performance.
Outlook
The arrival of 2016 brings with it a number of important areas to follow as the year progresses including the continuing development and uncertainty in the economies of China and other emerging markets, worldwide commodities prices and whether they will finally rebound or continue to languish, the path taken by the Federal Reserve toward higher rates and, last but certainly not least, the U.S. Presidential primary season and general election in November.
In the U.S. equity markets, we believe attention should be paid to the lack of breadth in recent advances. “FANG” (Facebook, Amazon, Netflix and Google) accounted for a full 4.1% of the S&P 500 return in 2015 and without these four stocks, the S&P 500 (excluding FANG) declined 3%. This illustrates how isolated the positive performance was in the year, and also indicates how vulnerable the market is to an extended decline considering the elevated price multiples on these stocks, with Facebook at 47x earnings, Amazon at 339x, Netflix at 552x, and Alphabet at 26x.
While Value investing historically outperforms Growth investing over the long-term, growth stocks significantly outperformed value stocks in 2015 with the Russell 1000 Growth index outperforming the Russell 1000 Value index by 9.5% in the year, illustrating the extreme sentiment shift that has favored Growth investing over the past several years.
The magnitude of Growth investing outperformance now rivals the period leading up to the March 2000 Technology bust. Historically, once these periods of extremes end, a new period of Value investing outperformance begins. With the markets still within range of all-time highs, and with weakening breadth, investors should be increasingly mindful of valuations and risk. In our portfolios, we invest in high quality companies that have strong balance sheets, generate relatively consistent cash flows and have solid long-term earnings and dividend growth prospects.
Sincerely,
James P. Cullen
Chairman and Chief Executive Officer
The above outlook reflects the opinions of the authors, is subject to change, is not guaranteed, and should not be considered investment advice.
2 | www.cullenfunds.com |
Cullen Funds Trust | Shareholder Letter |
December 31, 2015 (Unaudited) |
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.
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 Russell 1000 Value 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 of in global emerging economies. The MSCI Emerging Markets Index is an unmanaged index of common stocks of 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. (2/16)
Semi-Annual Report | December 31, 2015 | 3 |
Cullen Funds Trust | Disclosure of Fund Expenses |
December 31, 2015 (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 July 1, 2015 to December 31, 2015.
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 | July 1, 2015 to | |||||||||||
Ratio(a) | July 1, 2015 | December 31, 2015 | December 31, 2015(b) | |||||||||||
Cullen International High Dividend Fund | ||||||||||||||
Retail | ||||||||||||||
Actual | 1.25% | $ | 1,000.00 | $ | 931.20 | $ | 6.07 | |||||||
Hypothetical (5% return before expenses) | 1.25% | $ | 1,000.00 | $ | 1,018.85 | $ | 6.34 | |||||||
Class C | ||||||||||||||
Actual | 2.00% | $ | 1,000.00 | $ | 927.90 | $ | 9.69 | |||||||
Hypothetical (5% return before expenses) | 2.00% | $ | 1,000.00 | $ | 1,015.08 | $ | 10.13 | |||||||
Class I | ||||||||||||||
Actual | 1.00% | $ | 1,000.00 | $ | 932.00 | $ | 4.86 | |||||||
Hypothetical (5% return before expenses) | 1.00% | $ | 1,000.00 | $ | 1,020.11 | $ | 5.08 | |||||||
Class R1 | ||||||||||||||
Actual | 1.66% | $ | 1,000.00 | $ | 930.10 | $ | 8.05 | |||||||
Hypothetical (5% return before expenses) | 1.66% | $ | 1,000.00 | $ | 1,016.79 | $ | 8.42 | |||||||
Class R2 | ||||||||||||||
Actual | 1.43% | $ | 1,000.00 | $ | 931.10 | $ | 6.94 | |||||||
Hypothetical (5% return before expenses) | 1.43% | $ | 1,000.00 | $ | 1,017.95 | $ | 7.25 |
4 | www.cullenfunds.com |
Cullen Funds Trust | Disclosure of Fund Expenses |
December 31, 2015 (Unaudited) |
Expenses Paid | ||||||||||||||
Beginning | Ending | During Period | ||||||||||||
Net Expense | Account Value | Account Value | July 1, 2015 to | |||||||||||
Ratio(a) | July 1, 2015 | December 31, 2015 | December 31, 2015(b) | |||||||||||
Cullen High Dividend Equity Fund | ||||||||||||||
Retail | ||||||||||||||
Actual | 1.00% | $ | 1,000.00 | $ | 1,034.10 | $ | 5.11 | |||||||
Hypothetical (5% return before expenses) | 1.00% | $ | 1,000.00 | $ | 1,020.11 | $ | 5.08 | |||||||
Class C | ||||||||||||||
Actual | 1.75% | $ | 1,000.00 | $ | 1,030.60 | $ | 8.93 | |||||||
Hypothetical (5% return before expenses) | 1.75% | $ | 1,000.00 | $ | 1,016.34 | $ | 8.87 | |||||||
Class I | ||||||||||||||
Actual | 0.75% | $ | 1,000.00 | $ | 1,036.00 | $ | 3.84 | |||||||
Hypothetical (5% return before expenses) | 0.75% | $ | 1,000.00 | $ | 1,021.37 | $ | 3.81 | |||||||
Class R1 | ||||||||||||||
Actual | 1.50% | $ | 1,000.00 | $ | 1,032.20 | $ | 7.66 | |||||||
Hypothetical (5% return before expenses) | 1.50% | $ | 1,000.00 | $ | 1,017.60 | $ | 7.61 | |||||||
Class R2 | ||||||||||||||
Actual | 1.25% | $ | 1,000.00 | $ | 1,033.20 | $ | 6.39 | |||||||
Hypothetical (5% return before expenses) | 1.25% | $ | 1,000.00 | $ | 1,018.85 | $ | 6.34 | |||||||
Cullen Small Cap Value Fund | ||||||||||||||
Retail | ||||||||||||||
Actual | 1.25% | $ | 1,000.00 | $ | 858.10 | $ | 5.84 | |||||||
Hypothetical (5% return before expenses) | 1.25% | $ | 1,000.00 | $ | 1,018.85 | $ | 6.34 | |||||||
Class C | ||||||||||||||
Actual | 2.00% | $ | 1,000.00 | $ | 854.80 | $ | 9.32 | |||||||
Hypothetical (5% return before expenses) | 2.00% | $ | 1,000.00 | $ | 1,015.08 | $ | 10.13 | |||||||
Class I | ||||||||||||||
Actual | 1.00% | $ | 1,000.00 | $ | 859.10 | $ | 4.67 | |||||||
Hypothetical (5% return before expenses) | 1.00% | $ | 1,000.00 | $ | 1,020.11 | $ | 5.08 | |||||||
Cullen Value Fund | ||||||||||||||
Retail | ||||||||||||||
Actual | 1.00% | $ | 1,000.00 | $ | 967.90 | $ | 4.95 | |||||||
Hypothetical (5% return before expenses) | 1.00% | $ | 1,000.00 | $ | 1,020.11 | $ | 5.08 | |||||||
Class C | ||||||||||||||
Actual | 1.75% | $ | 1,000.00 | $ | 964.20 | $ | 8.64 | |||||||
Hypothetical (5% return before expenses) | 1.75% | $ | 1,000.00 | $ | 1,016.34 | $ | 8.87 | |||||||
Class I | ||||||||||||||
Actual | 0.75% | $ | 1,000.00 | $ | 969.30 | $ | 3.71 | |||||||
Hypothetical (5% return before expenses) | 0.75% | $ | 1,000.00 | $ | 1,021.37 | $ | 3.81 |
Semi-Annual Report | December 31, 2015 | 5 |
Cullen Funds Trust | Disclosure of Fund Expenses |
December 31, 2015 (Unaudited) |
�� | Expenses Paid | |||||||||||||
Beginning | Ending | During Period | ||||||||||||
Net Expense | Account Value | Account Value | July 1, 2015 to | |||||||||||
Ratio(a) | July 1, 2015 | December 31, 2015 | December 31, 2015(b) | |||||||||||
Cullen Emerging Markets High Dividend Fund | ||||||||||||||
Retail | ||||||||||||||
Actual | 1.25% | $ | 1,000.00 | $ | 856.00 | $ | 5.83 | |||||||
Hypothetical (5% return before expenses) | 1.25% | $ | 1,000.00 | $ | 1,018.85 | $ | 6.34 | |||||||
Class C | ||||||||||||||
Actual | 2.00% | $ | 1,000.00 | $ | 852.50 | $ | 9.31 | |||||||
Hypothetical (5% return before expenses) | 2.00% | $ | 1,000.00 | $ | 1,015.08 | $ | 10.13 | |||||||
Class I | ||||||||||||||
Actual | 1.00% | $ | 1,000.00 | $ | 858.50 | $ | 4.67 | |||||||
Hypothetical (5% return before expenses) | 1.00% | $ | 1,000.00 | $ | 1,020.11 | $ | 5.08 | |||||||
Cullen Enhanced Equity Income Fund(c) | ||||||||||||||
Retail | ||||||||||||||
Actual | 1.00% | $ | 1,000.00 | $ | 997.00 | $ | 0.44 | |||||||
Hypothetical (5% return before expenses) | 1.00% | $ | 1,000.00 | $ | 1,020.11 | $ | 5.08 | |||||||
Class C | ||||||||||||||
Actual | 1.75% | $ | 1,000.00 | $ | 997.00 | $ | 0.76 | |||||||
Hypothetical (5% return before expenses) | 1.75% | $ | 1,000.00 | $ | 1,016.34 | $ | 8.87 | |||||||
Class I | ||||||||||||||
Actual | 0.75% | $ | 1,000.00 | $ | 997.00 | $ | 0.33 | |||||||
Hypothetical (5% return before expenses) | 0.75% | $ | 1,000.00 | $ | 1,021.37 | $ | 3.81 |
(a) | Annualized, based on the Fund's most recent fiscal half year 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 (184), divided by 366 (except for Cullen Enhanced Equity Fund actual return information reflects the 16 day period, from commencement of operations through December 31, 2015). 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. |
(c) | Commencement of operations was December 16, 2015. |
6 | www.cullenfunds.com |
Cullen International High Dividend Fund | Schedule of Investments |
December 31, 2015 (Unaudited) |
Value | ||||||||
Shares | (Note 2) | |||||||
COMMON STOCKS - 97.98% | ||||||||
Australia - 2.91% | ||||||||
BHP Billiton Ltd. | 79,500 | $ | 1,034,659 | |||||
Sonic Healthcare Ltd. | 470,000 | 6,120,278 | ||||||
7,154,937 | ||||||||
Canada - 3.74% | ||||||||
BCE, Inc. | 126,300 | 4,877,706 | ||||||
Manulife Financial Corp. | 251,475 | 3,767,095 | ||||||
RioCan Real Estate Investmevnt Trust | 31,150 | 539,238 | ||||||
9,184,039 | ||||||||
China - 1.13% | ||||||||
CNOOC Ltd. | 2,672,000 | 2,782,310 | ||||||
France - 11.49% | ||||||||
BNP Paribas SA | 133,500 | 7,577,594 | ||||||
Cie Generale des Etablissements Michelin | 71,700 | 6,849,172 | ||||||
Engie SA | 46,900 | 832,063 | ||||||
Sanofi | 75,000 | 6,406,397 | ||||||
Total SA - Sponsored ADR | 145,835 | 6,555,283 | ||||||
28,220,509 | ||||||||
Germany - 15.63% | ||||||||
Allianz SE | 32,400 | 5,758,715 | ||||||
Bayer AG | 60,635 | 7,630,658 | ||||||
Deutsche Post AG | 70,450 | 1,987,157 | ||||||
Deutsche Telekom AG | 441,900 | 8,015,126 | ||||||
Muenchener Rueckversicherungs-Gesellschaft AG in Muenchen | 35,600 | 7,139,932 | ||||||
Siemens AG | 80,450 | 7,858,129 | ||||||
38,389,717 | ||||||||
Hong Kong - 1.41% | ||||||||
BOC Hong Kong Holdings Ltd. | 1,130,500 | 3,457,120 | ||||||
Indonesia - 0.03% | ||||||||
PT Telekomunikasi Indonesia Persero Tbk | 320,000 | 72,079 | ||||||
Japan - 9.27% | ||||||||
Honda Motor Co. Ltd. | 232,000 | 7,547,069 | ||||||
Japan Tobacco, Inc. | 198,200 | 7,372,621 | ||||||
Nippon Telegraph & Telephone Corp. | 195,200 | 7,853,798 | ||||||
22,773,488 | ||||||||
Luxembourg - 2.73% | ||||||||
RTL Group SA | 80,064 | 6,699,742 | ||||||
Netherlands - 2.54% | ||||||||
Unilever NV | 143,785 | 6,228,766 |
Value | ||||||||
Shares | (Note 2) | |||||||
Norway - 2.40% | ||||||||
Orkla ASA | 459,350 | $ | 3,637,789 | |||||
Statoil ASA | 162,000 | 2,263,917 | ||||||
5,901,706 | ||||||||
Singapore - 2.66% | ||||||||
Singapore Telecommunications Ltd. | 1,705,000 | 4,413,111 | ||||||
United Overseas Bank Ltd. | 153,900 | 2,128,485 | ||||||
6,541,596 | ||||||||
South Africa - 0.58% | ||||||||
MTN Group Ltd. | 164,820 | 1,416,290 | ||||||
Switzerland - 16.60% | ||||||||
ABB Ltd. - Sponsored ADR | 290,800 | 5,155,884 | ||||||
Nestle SA | 102,265 | 7,611,677 | ||||||
Novartis AG - Sponsored ADR | 91,100 | 7,838,244 | ||||||
Roche Holding AG | 30,875 | 8,520,218 | ||||||
UBS Group AG | 394,300 | 7,684,441 | ||||||
Zurich Insurance Group AG | 15,365 | 3,963,973 | ||||||
40,774,437 | ||||||||
Taiwan - 0.28% | ||||||||
MediaTek, Inc. | 90,000 | 684,994 | ||||||
United Kingdom - 24.58% | ||||||||
AstraZeneca PLC - Sponsored ADR | 219,050 | 7,436,747 | ||||||
BAE Systems PLC | 1,003,400 | 7,390,145 | ||||||
British American Tobacco PLC - Sponsored ADR | 49,400 | 5,456,230 | ||||||
GlaxoSmithKline PLC | 336,650 | 6,814,054 | ||||||
HSBC Holdings PLC | 390,133 | 3,116,010 | ||||||
Imperial Tobacco Group PLC | 155,100 | 8,200,476 | ||||||
Rexam PLC | 542,808 | 4,837,255 | ||||||
Royal Dutch Shell PLC, Class B | 41,800 | 950,821 | ||||||
Smiths Group PLC | 344,000 | 4,764,437 | ||||||
SSE PLC | 236,700 | 5,331,851 | ||||||
Vodafone Group PLC - Sponsored ADR | 188,515 | 6,081,494 | ||||||
60,379,520 | ||||||||
TOTAL COMMON STOCKS | ||||||||
(Cost $218,146,962) | 240,661,250 |
7-Day | Value | |||||||||||
Yield | Shares | (Note 2) | ||||||||||
SHORT TERM INVESTMENTS - 2.26% | ||||||||||||
SSgA® Prime Money Market Fund | 0.187 | % | 5,538,898 | 5,538,898 | ||||||||
TOTAL SHORT TERM INVESTMENTS | ||||||||||||
(Cost $5,538,898) | 5,538,898 |
See Notes to Financial Statements. | |
Semi-Annual Report | December 31, 2015 | 7 |
Cullen International High Dividend Fund | Schedule of Investments |
December 31, 2015 (Unaudited) |
Value | ||||
(Note 2) | ||||
TOTAL INVESTMENTS 100.24% | ||||
(Cost $223,685,860) | $ | 246,200,148 | ||
Liabilities In Excess Of Other Assets (0.24)% | (579,905 | ) | ||
NET ASSETS 100.00% | $ | 245,620,243 |
ADR | - | American Depositary Receipt. ADRs are depositary receipts for foreign securities, denominated in U.S. dollars and traded on U.S. exchanges. |
AG | - | Aktiengesellschaft is a German term that refers to a corporation that is limited by shares, i.e., owned by shareholders. |
ASA | - | Allmennaksjeselskap is the Norwegian term for public limited company. |
Ltd. | - | Limited. |
PT | - | Perseroan Terbatas, meaning "privatelimited", which is the equivalent of an incorporated entity in the U.S. |
NV | - | Naamloze Vennootschap is the Dutch term for a public limited liability corporation. |
PLC | - | Public Limited Company. |
SA | - | Generally designated corporations in various countries, mostly those employing civil law. |
SE | - | SE Regulation. A European Company which can operate on a Europe-wide basis and be governed by Community law directly applicable in all Member States. |
Tbk | - | Terbuka is appended after the corporation name if the shares become publicly listed for trading |
Sector | % of Net | Value | ||||||
Diversification | Assets | (Note 2) | ||||||
COMMON STOCKS | ||||||||
Health Care | 20.67 | % | $ | 50,766,596 | ||||
Financials | 18.14 | 44,593,365 | ||||||
Consumer Staples | 12.68 | 31,134,938 | ||||||
Industrials | 11.06 | 27,155,752 | ||||||
Telecommunication Services | 6.87 | 16,860,680 | ||||||
Communications | 6.46 | 15,868,924 | ||||||
Consumer, Cyclical | 5.86 | 14,396,241 | ||||||
Energy | 5.11 | 12,552,331 | ||||||
Consumer, Non-cyclical | 3.00 | 7,372,621 | ||||||
Consumer Discretionary | 2.73 | 6,699,742 | ||||||
Utilities | 2.51 | 6,163,914 | ||||||
Materials | 2.39 | 5,871,914 | ||||||
Information Technology | 0.28 | 684,994 | ||||||
Financials REITS/Property | 0.22 | 539,238 | ||||||
TOTAL COMMON STOCKS | 97.98 | 240,661,250 | ||||||
SHORT TERM INVESTMENTS | 2.26 | 5,538,898 | ||||||
TOTAL INVESTMENTS | 100.24 | % | $ | 246,200,148 | ||||
Liabilities in Excess of Other Assets | (0.24 | ) | (579,905 | ) | ||||
TOTAL NET ASSETS | 100.00 | % | $ | 245,620,243 |
Percentages are stated as a percent of net assets.
See Notes to Financial Statements. | |
8 | www.cullenfunds.com |
Cullen High Dividend Equity Fund | Schedule of Investments |
December 31, 2015 (Unaudited) |
Value | ||||||||
Shares | (Note 2) | |||||||
COMMON STOCKS - 97.01% | ||||||||
Aerospace & Defense - 5.25% | ||||||||
The Boeing Co. | 187,600 | $ | 27,125,084 | |||||
Raytheon Co. | 611,350 | 76,131,415 | ||||||
103,256,499 | ||||||||
Communications Equipment - 4.43% | ||||||||
Cisco Systems, Inc. | 2,665,700 | 72,387,083 | ||||||
Corning, Inc. | 812,535 | 14,853,140 | ||||||
87,240,223 | ||||||||
Distillers & Vintners - 2.47% | ||||||||
Diageo PLC - Sponsored ADR | 445,000 | 48,536,150 | ||||||
Distributors - 2.61% | ||||||||
Genuine Parts Co. | 598,890 | 51,438,662 | ||||||
Diversified Banks - 4.13% | ||||||||
HSBC Holdings PLC - Sponsored ADR | 653,060 | 25,776,278 | ||||||
Wells Fargo & Co. | 1,020,750 | 55,487,970 | ||||||
81,264,248 | ||||||||
Diversified Chemicals - 3.02% | ||||||||
EI du Pont de Nemours & Co. | 892,400 | 59,433,840 | ||||||
Electric Utilities - 3.76% | ||||||||
NextEra Energy, Inc. | 712,350 | 74,006,042 | ||||||
Household Products - 6.86% | ||||||||
Kimberly-Clark Corp. | 585,000 | 74,470,500 | ||||||
Unilever NV | 1,395,440 | 60,450,461 | ||||||
134,920,961 | ||||||||
Industrial Conglomerates - 7.50% | ||||||||
3M Co. | 491,000 | 73,964,240 | ||||||
General Electric Co. | 2,360,750 | 73,537,363 | ||||||
147,501,603 | ||||||||
Insurance - 2.25% | ||||||||
ACE Ltd. | 379,025 | 44,289,071 | ||||||
Integrated Oil & Gas - 5.73% | ||||||||
Chevron Corp. | 424,950 | 38,228,502 | ||||||
ConocoPhillips | 890,000 | 41,554,100 | ||||||
Royal Dutch Shell PLC, Class B - Sponsored ADR | 715,350 | 32,934,714 | ||||||
112,717,316 | ||||||||
Integrated Telecommunication - 0.54% | ||||||||
BCE, Inc. | 274,950 | 10,618,569 |
Value | ||||||||
Shares | (Note 2) | |||||||
Integrated Telecommunication Services - 3.61% | ||||||||
AT&T, Inc. | 2,065,000 | $ | 71,056,650 | |||||
Life & Health Insurance - 3.17% | ||||||||
MetLife, Inc. | 1,294,000 | 62,383,740 | ||||||
Oil & Gas - 2.06% | ||||||||
Exxon Mobil Corp. | 520,000 | 40,534,000 | ||||||
Other Diversified Financial Services - 3.67% | ||||||||
JPMorgan Chase & Co. | 1,095,400 | 72,329,262 | ||||||
Pharmaceuticals - 14.41% | ||||||||
AstraZeneca PLC - Sponsored ADR | 1,366,500 | 46,392,675 | ||||||
Eli Lilly & Co. | 534,750 | 45,058,035 | ||||||
Johnson & Johnson | 752,400 | 77,286,528 | ||||||
Merck & Co., Inc. | 1,126,900 | 59,522,858 | ||||||
Pfizer, Inc. | 1,714,550 | 55,345,674 | ||||||
283,605,770 | ||||||||
Property & Casualty Insurance - 2.73% | ||||||||
The Travelers Cos., Inc. | 477,000 | 53,834,220 | ||||||
Semiconductors - 2.16% | ||||||||
Intel Corp. | 1,232,650 | 42,464,793 | ||||||
Specialized REITs - 4.76% | ||||||||
HCP, Inc. - REIT | 763,350 | 29,190,504 | ||||||
Welltower, Inc. - REIT | 946,870 | 64,415,566 | ||||||
93,606,070 | ||||||||
Systems Software - 4.61% | ||||||||
Microsoft Corp. | 1,414,800 | 78,493,104 | ||||||
Symantec Corp. | 578,816 | 12,155,136 | ||||||
90,648,240 | ||||||||
Tobacco - 6.06% | ||||||||
Altria Group, Inc. | 1,159,600 | 67,500,316 | ||||||
Philip Morris International, Inc. | 588,500 | 51,735,035 | ||||||
119,235,351 | ||||||||
Wireless Telecommunication Services - 1.22% | ||||||||
Vodafone Group PLC - Sponsored ADR | 743,850 | 23,996,601 | ||||||
TOTAL COMMON STOCKS | ||||||||
(Cost $1,268,298,101) | 1,908,917,881 |
See Notes to Financial Statements. | |
Semi-Annual Report | December 31, 2015 | 9 |
Cullen High Dividend Equity Fund | Schedule of Investments |
December 31, 2015 (Unaudited) |
7-Day | Value | |||||||||||
Yield | Shares | (Note 2) | ||||||||||
SHORT TERM INVESTMENTS - 2.84% | ||||||||||||
SSgA® Prime Money Market Fund | 0.187 | % | 55,812,882 | $ | 55,812,882 | |||||||
TOTAL SHORT TERM INVESTMENTS | ||||||||||||
(Cost $55,812,882) | 55,812,882 | |||||||||||
TOTAL INVESTMENTS 99.85% | ||||||||||||
(Cost $1,324,110,983) | $ | 1,964,730,763 | ||||||||||
Other Assets In Excess Of Liabilities 0.15% | 3,048,362 | |||||||||||
NET ASSETS 100.00% | $ | 1,967,779,125 |
ADR | - | American Depositary Receipt. ADRs are depositary receipts for foreign securities denominated in U.S. dollars and traded on U.S. exchanges. |
Ltd. | - | Limited. |
NV | - | Naamloze Vennootschap is the Dutch term for a public limited liability corporation. |
PLC | - | Public Limited Company. |
REIT | - | Real Estate Investment Trust. |
Percentages are stated as a percent of net assets.
See Notes to Financial Statements. | |
10 | www.cullenfunds.com |
Cullen Small Cap Value Fund | Schedule of Investments |
December 31, 2015 (Unaudited) |
Value | ||||||||
Shares | (Note 2) | |||||||
COMMON STOCKS - 93.67% | ||||||||
Aerospace & Defense - 6.28% | ||||||||
Orbital ATK, Inc. | 2,000 | $ | 178,680 | |||||
Spirit Aerosystems Holdings, Inc., Class A(a) | 3,650 | 182,756 | ||||||
361,436 | ||||||||
Airlines - 3.55% | ||||||||
Copa Holdings SA, Class A | 4,230 | 204,140 | ||||||
Apparel Retail - 3.25% | ||||||||
Ascena Retail Group, Inc.(a) | 19,000 | 187,150 | ||||||
Auto Parts & Equipment - 2.76% | ||||||||
Tenneco, Inc.(a) | 3,460 | 158,849 | ||||||
Banks - 3.39% | ||||||||
LegacyTexas Financial Group, Inc. | 7,800 | 195,156 | ||||||
Computer Hardware - 4.28% | ||||||||
Avnet, Inc. | 5,750 | 246,330 | ||||||
Construction & Engineering - 4.27% | ||||||||
KBR, Inc. | 14,515 | 245,594 | ||||||
Distribution/Wholesale - 3.28% | ||||||||
Fossil Group, Inc.(a) | 5,165 | 188,832 | ||||||
Diversified Metals & Mining - 2.47% | ||||||||
HudBay Minerals, Inc. | 37,200 | 142,104 | ||||||
Electrical Components & Equipment - 2.93% | ||||||||
Hubbell, Inc.(a) | 1,670 | 168,737 | ||||||
Electrical Equipment - 4.23% | ||||||||
BWX Technologies, Inc. | 7,650 | 243,040 | ||||||
Electronic Equipment & Instruments - 3.30% | ||||||||
Babcock & Wilcox Enterprises, Inc.(a) | 9,100 | 189,917 | ||||||
Health Care Supplies - 2.48% | ||||||||
Alere, Inc.(a) | 3,650 | 142,678 | ||||||
Insurance - 5.94% | ||||||||
Assured Guaranty Ltd. | 8,600 | 227,298 | ||||||
FNF Group | 3,300 | 114,406 | ||||||
341,704 | ||||||||
Machinery-Diversified - 3.55% | ||||||||
AGCO Corp. | 4,500 | 204,255 | ||||||
Mining - 3.47% | ||||||||
Luxfer Holdings PLC - ADR | 20,300 | 199,752 |
Value | ||||||||
Shares | (Note 2) | |||||||
Miscellaneous Manufacturing - 4.13% | ||||||||
ITT Corp. | 4,150 | $ | 150,728 | |||||
LSB Industries, Inc.(a) | 12,000 | 87,000 | ||||||
237,728 | ||||||||
Multi-Line Insurance - 4.16% | ||||||||
WR Berkley Corp. | 4,370 | 239,258 | ||||||
Multi-Sector Holdings - 1.83% | ||||||||
FNFV Group(a) | 9,392 | 105,472 | ||||||
Oil & Gas Exploration & Production - 5.05% | ||||||||
Bill Barrett Corp.(a) | 36,050 | 141,676 | ||||||
Cimarex Energy Co. | 1,665 | 148,818 | ||||||
290,494 | ||||||||
Regional Banks - 11.29% | ||||||||
Bank of the Ozarks, Inc. | 4,630 | 229,000 | ||||||
CVB Financial Corp. | 12,550 | 212,346 | ||||||
National Bank Holdings Corp., Class A | 9,732 | 207,973 | ||||||
649,319 | ||||||||
Retail - 7.78% | ||||||||
J Alexander's Holdings, Inc.(a) | 1,622 | 17,712 | ||||||
Sonic Automotive, Inc., Class A | 9,700 | 220,772 | ||||||
Vista Outdoor, Inc.(a) | 4,700 | 209,197 | ||||||
447,681 | ||||||||
TOTAL COMMON STOCKS | ||||||||
(Cost $4,701,616) | 5,389,626 |
7-Day | Value | |||||||||||
Yield | Shares | (Note 2) | ||||||||||
SHORT TERM INVESTMENTS - 6.46% | ||||||||||||
SSgA® Prime Money Market Fund | 0.187 | % | 371,852 | 371,852 | ||||||||
TOTAL SHORT TERM INVESTMENTS | ||||||||||||
(Cost $371,852) | 371,852 | |||||||||||
TOTAL INVESTMENTS 100.13% | ||||||||||||
(Cost $5,073,468) | $ | 5,761,478 | ||||||||||
Liabilities In Excess Of Other Assets (0.13)% | (7,727 | ) | ||||||||||
NET ASSETS 100.00% | $ | 5,753,751 |
See Notes to Financial Statements. | |
Semi-Annual Report | December 31, 2015 | 11 |
Cullen Small Cap Value Fund | Schedule of Investments |
December 31, 2015 (Unaudited) |
ADR | - | American Depositary Receipt. ADRs are depositary receipts for foreign securities denominated in U.S. dollars and traded on U.S. exchanges. |
Ltd. | - | Limited. |
PLC | - | Public Limited Company. |
SA | - | Generally designated corporations in various countries, mostly those employing civil law. |
(a) | Non-Income Producing Security. |
Percentages are stated as a percent of net assets.
See Notes to Financial Statements. | |
12 | www.cullenfunds.com |
Cullen Value Fund | Schedule of Investments |
December 31, 2015 (Unaudited) |
Value | ||||||||
Shares | (Note 2) | |||||||
COMMON STOCKS - 86.08% | ||||||||
Aerospace & Defense - 7.08% | ||||||||
The Boeing Co. | 4,400 | $ | 636,196 | |||||
Raytheon Co. | 11,500 | 1,432,095 | ||||||
2,068,291 | ||||||||
Auto Parts & Equipment - 3.00% | ||||||||
BorgWarner, Inc. | 9,500 | 410,685 | ||||||
Johnson Controls, Inc. | 11,820 | 466,772 | ||||||
877,457 | ||||||||
Banks - 1.66% | ||||||||
Morgan Stanley | 15,200 | 483,512 | ||||||
Communications Equipment - 3.03% | ||||||||
Cisco Systems, Inc. | 32,600 | 885,253 | ||||||
Diversified Banks - 3.57% | ||||||||
Wells Fargo & Co. | 19,200 | 1,043,712 | ||||||
Gold - 1.43% | ||||||||
Newmont Mining Corp. | 23,200 | 417,368 | ||||||
Health Care Equipment - 3.07% | ||||||||
Medtronic PLC | 11,660 | 896,887 | ||||||
Heavy Electrical Equipment - 1.84% | ||||||||
ABB Ltd. - Sponsored ADR | 30,350 | 538,105 | ||||||
Household Products - 0.85% | ||||||||
Unilever NV | 5,750 | 249,090 | ||||||
Industrial Conglomerates - 2.92% | ||||||||
3M Co. | 5,670 | 854,129 | ||||||
Insurance - 1.84% | ||||||||
ACE Ltd. | 4,605 | 538,094 | ||||||
Integrated Oil & Gas - 4.80% | ||||||||
Chevron Corp. | 9,750 | 877,110 | ||||||
ConocoPhillips | 11,220 | 523,862 | ||||||
1,400,972 | ||||||||
Integrated Telecommunication Services -2.56% | ||||||||
AT&T, Inc. | 21,700 | 746,697 | ||||||
Life & Health Insurance - 2.22% | ||||||||
MetLife, Inc. | 13,480 | 649,871 | ||||||
Life Sciences Tools & Services - 3.76% | ||||||||
Thermo Fisher Scientific, Inc. | 7,750 | 1,099,338 |
Value | ||||||||
Shares | (Note 2) | |||||||
Managed Health Care - 4.09% | ||||||||
Aetna, Inc. | 11,050 | $ | 1,194,726 | |||||
Movies & Entertainment - 2.48% | ||||||||
The Walt Disney Co. | 6,900 | 725,052 | ||||||
Oil & Gas Equipment & Services - 2.41% | ||||||||
Halliburton Co. | 20,650 | 702,926 | ||||||
Oil & Gas Exploration & Production - 0.74% | ||||||||
Devon Energy Corp. | 6,750 | 216,000 | ||||||
Other Diversified Financial Services - 5.88% | ||||||||
Citigroup, Inc. | 17,100 | 884,925 | ||||||
JPMorgan Chase & Co. | 12,600 | 831,978 | ||||||
1,716,903 | ||||||||
Pharmaceuticals - 10.30% | ||||||||
Johnson & Johnson | 3,100 | 318,432 | ||||||
Mallinckrodt PLC(a) | 1,477 | 110,229 | ||||||
Merck & Co., Inc. | 15,150 | 800,223 | ||||||
Novartis AG - Sponsored ADR | 9,600 | 825,984 | ||||||
Pfizer, Inc. | 29,550 | 953,874 | ||||||
3,008,742 | ||||||||
Property & Casualty Insurance - 4.62% | ||||||||
The Allstate Corp. | 8,600 | 533,974 | ||||||
The Chubb Corp. | 6,150 | 815,736 | ||||||
1,349,710 | ||||||||
Railroads - 2.70% | ||||||||
CSX Corp. | 30,450 | 790,177 | ||||||
Regional Banks - 2.70% | ||||||||
BB&T Corp. | 20,850 | 788,338 | ||||||
Systems Software - 6.53% | ||||||||
Microsoft Corp. | 21,100 | 1,170,628 | ||||||
Oracle Corp. | 20,200 | 737,906 | ||||||
1,908,534 | ||||||||
TOTAL COMMON STOCKS | ||||||||
(Cost $18,669,113) | 25,149,884 |
7-Day | Value | |||||||||||
Yield | Shares | (Note 2) | ||||||||||
SHORT TERM INVESTMENTS - 13.93% | ||||||||||||
SSgA® Prime Money Market Fund | 0.187 | % | 4,069,557 | 4,069,557 | ||||||||
TOTAL SHORT TERM INVESTMENTS | ||||||||||||
(Cost $4,069,557) | 4,069,557 |
See Notes to Financial Statements. | |
Semi-Annual Report | December 31, 2015 | 13 |
Cullen Value Fund | Schedule of Investments |
December 31, 2015 (Unaudited) |
Value | ||||
(Note 2) | ||||
TOTAL INVESTMENTS 100.01% | ||||
(Cost $22,738,670) | $ | 29,219,441 | ||
Liabilities In Excess Of Other Assets (0.01)% | (1,601 | ) | ||
NET ASSETS 100.00% | $ | 29,217,840 |
ADR | - | American Depository Receipt. ADRs are depository receipts for foreign securities denominated in U.S. dollars and traded on U.S. exchanges. |
Ltd. | - | Limited. |
NV | - | Naamloze Vennootschap is the Dutch term for a public limited liability corporation. |
PLC | - | Public Limited Company. |
(a) | Non-Income Producing Security. |
Percentages are stated as a percent of net assets.
See Notes to Financial Statements. | |
14 | www.cullenfunds.com |
Cullen Emerging Markets High Dividend Fund | Schedule of Investments |
December 31, 2015 (Unaudited) |
Value | ||||||||
Shares | (Note 2) | |||||||
COMMON STOCKS - 88.95% | ||||||||
Austria - 3.04% | ||||||||
Erste Group Bank AG(a) | 157,400 | $ | 4,945,189 | |||||
Brazil - 3.98% | ||||||||
AMBEV SA - ADR | 516,100 | 2,301,806 | ||||||
Banco Itau Holding | 319,600 | 2,127,031 | ||||||
BM&F Bovespa SA | 454,800 | 1,251,885 | ||||||
Telefonica Brasil SA - ADR(a) | 88,250 | 796,898 | ||||||
6,477,620 | ||||||||
Cambodia - 0.93% | ||||||||
NagaCorp Ltd. | 2,400,000 | 1,517,410 | ||||||
Cayman Islands - 1.44% | ||||||||
Sands China Ltd. | 682,000 | 2,336,385 | ||||||
China - 4.47% | ||||||||
China Merchants Holdings | ||||||||
International Co. Ltd. | 875,000 | 2,783,047 | ||||||
CNOOC Ltd. | 1,902,000 | 1,980,521 | ||||||
Ping An Insurance Group Co. of China Ltd., Class H | 452,000 | 2,507,855 | ||||||
7,271,423 | ||||||||
Czech Republic - 2.16% | ||||||||
Komercni Banka AS | 17,650 | 3,516,939 | ||||||
Greece - 0.55% | ||||||||
OPAP SA | 101,150 | 890,391 | ||||||
Hong Kong - 11.58% | ||||||||
AIA Group Ltd. | 795,000 | 4,780,227 | ||||||
Baoxin Auto Group Ltd. | 2,887,000 | 1,806,692 | ||||||
China Everbright Ltd. | 24,000 | 55,184 | ||||||
China Mobile Ltd. - Sponsored ADR | 41,550 | 2,340,511 | ||||||
CK Hutchison Holdings Ltd. | 118,000 | 1,592,609 | ||||||
Great Wall Motor Co. Ltd., Class H | 1,662,000 | 1,936,486 | ||||||
Greatview Aseptic Packaging Co. Ltd. | 1,700,000 | 769,930 | ||||||
PetroChina Co. Ltd., Class H | 1,644,000 | 1,077,609 | ||||||
Television Broadcasts Ltd. | 39,500 | 162,841 | ||||||
Value Partners Group Ltd. | 3,702,850 | 4,328,723 | ||||||
18,850,812 | ||||||||
India - 5.78% | ||||||||
Ascendas India Trust | 4,025,500 | 2,469,980 | ||||||
ICICI Bank Ltd. - Sponsored ADR | 518,350 | 4,058,681 | ||||||
Religare Health Trust | 4,072,200 | 2,871,994 | ||||||
9,400,655 | ||||||||
Indonesia - 3.05% | ||||||||
Gudang Garam Tbk PT | 718,300 | 2,865,905 | ||||||
Value | ||||||||
Shares | (Note 2) | |||||||
Indonesia (continued) | ||||||||
PT Telekomunikasi Indonesia Persero Tbk | 9,325,000 | $ | 2,100,408 | |||||
4,966,313 | ||||||||
Israel - 3.08% | ||||||||
Elbit Systems Ltd. | 56,950 | 5,017,337 | ||||||
Luxembourg - 0.76% | ||||||||
Pegas Nonwovens SA | 42,292 | 1,244,548 | ||||||
Malaysia - 0.32% | ||||||||
Axiata Group Bhd | 347,500 | 518,802 | ||||||
Mexico - 3.84% | ||||||||
Fibra Uno Administracion SA de CV - REIT | 1,057,387 | 2,330,798 | ||||||
Grupo Financiero Santander Mexico SAB de CV, Class B - ADR | 179,250 | 1,554,097 | ||||||
PLA Administradora Industrial S de RL de CV - REIT | 1,460,400 | 2,371,789 | ||||||
6,256,684 | ||||||||
Nigeria - 0.14% | ||||||||
Lafarge Africa PLC | 472,258 | 229,664 | ||||||
Philippines - 0.35% | ||||||||
Philippine Long Distance Telephone Co. | 13,105 | 573,718 | ||||||
Poland - 2.11% | ||||||||
Asseco Poland SA | 126,000 | 1,824,481 | ||||||
Bank Pekao SA | 31,500 | 1,152,346 | ||||||
Powszechny Zaklad Ubezpieczen SA | 51,900 | 450,113 | ||||||
3,426,940 | ||||||||
Russia - 3.41% | ||||||||
Lukoil OAO (London Stock | ||||||||
Exchange) - Sponsored ADR | 63,520 | 2,045,344 | ||||||
MMC Norilsk Nickel OJSC - ADR | 216,190 | 2,738,046 | ||||||
Mobile Telesystems OJSC - Sponsored ADR | 125,350 | 774,663 | ||||||
5,558,053 | ||||||||
Singapore - 1.97% | ||||||||
Asian Pay Television Trust | 4,750,000 | 2,144,016 | ||||||
SATS Ltd. | 390,000 | 1,056,210 | ||||||
3,200,226 | ||||||||
South Africa - 6.61% | ||||||||
The Bidvest Group Ltd. | 118,650 | 2,518,081 | ||||||
MMI Holdings Ltd. | 971,250 | 1,381,668 | ||||||
MTN Group Ltd. | 117,775 | 1,012,035 | ||||||
Nampak Ltd. | 1,047,500 | 1,683,180 |
See Notes to Financial Statements. | |
Semi-Annual Report | December 31, 2015 | 15 |
Cullen Emerging Markets High Dividend Fund | Schedule of Investments |
December 31, 2015 (Unaudited) |
Value | ||||||||
Shares | (Note 2) | |||||||
South Africa (continued) | ||||||||
SABMiller PLC | 69,300 | $ | 4,157,485 | |||||
10,752,449 | ||||||||
South Korea - 8.61% | ||||||||
Halla Visteon Climate Control Corp. | 67,565 | 2,990,596 | ||||||
Hyundai Motor Co. | 20,590 | 2,616,443 | ||||||
Industrial Bank of Korea | 30,000 | 315,978 | ||||||
KT&G Corp. | 46,000 | 4,099,612 | ||||||
Samsung Electronics Co. Ltd. | 3,720 | 3,997,441 | ||||||
14,020,070 | ||||||||
Sri Lanka - 1.46% | ||||||||
Hatton National Bank PLC | 1,623,734 | 2,370,595 | ||||||
Taiwan - 11.38% | ||||||||
Advanced Semiconductor | ||||||||
Engineering, Inc. | 2,160,000 | 2,498,858 | ||||||
King Yuan Electronics Co. Ltd. | 2,100,000 | 1,377,751 | ||||||
MediaTek, Inc. | 200,000 | 1,522,209 | ||||||
Silicon Motion Technology Corp. - ADR | 54,700 | 1,715,392 | ||||||
Siliconware Precision Industries Co. | 1,962,519 | 3,124,783 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. - Sponsored ADR | 189,000 | 4,299,750 | ||||||
Win Semiconductors Corp. | 2,640,557 | 3,983,305 | ||||||
18,522,048 | ||||||||
Thailand - 1.76% | ||||||||
Major Cineplex Group PCL | 1,818,400 | 1,781,259 | ||||||
Shin Corp Pub Co. Ltd.(a) | 750,000 | 1,083,785 | ||||||
2,865,044 | ||||||||
Turkey - 3.73% | ||||||||
Arcelik AS | 622,000 | 2,979,475 | ||||||
Ford Otomotiv Sanayi AS | 297,400 | 3,087,804 | ||||||
6,067,279 | ||||||||
Vietnam - 2.44% | ||||||||
Saigon Securities, Inc.(a) | 4,030,000 | 3,978,919 | ||||||
TOTAL COMMON STOCKS | ||||||||
(Cost $150,724,643) | 144,775,513 | |||||||
PARTICIPATORY NOTES - 7.40% | ||||||||
China - 0.01% | ||||||||
Daqin Railway Co. Ltd. (Issued by Morgan Stanley), Expires 11/03/2017 | 5,891 | 7,820 |
Value | ||||||||
Shares | (Note 2) | |||||||
India - 4.75% | ||||||||
Bajaj Holdings & Investments Ltd. (Issued by Morgan Stanley), Expires 05/26/2017 | 69,378 | 1,740,002 | ||||||
Indiabulls Housing (Issued by Morgan Stanley), Expires 11/28/2018 | 79,366 | 883,801 | ||||||
Power Grid Corporation of India Ltd. (Issued by Morgan Stanley), Expires 10/23/2017 | 1,071,508 | 2,286,153 | ||||||
Rural Electrication Corp. (Issued by Morgan Stanley), Expires 02/27/2018 | 290,000 | 993,096 | ||||||
State Bank of India (Issued by Morgan Stanley), Expires 05/19/2017 | 540,000 | 1,832,072 | ||||||
$ | 7,735,124 | |||||||
Saudi Arabia - 2.64% | ||||||||
Saudi Telecom Co. (Issued by Morgan Stanley), Expires 07/25/2016 | 236,000 | 4,301,939 | ||||||
TOTAL PARTICIPATORY NOTES | ||||||||
(Cost $12,068,176) | 12,044,883 |
7-Day | Value | |||||||||||
Yield | Shares | (Note 2) | ||||||||||
SHORT TERM INVESTMENTS - 3.02% | ||||||||||||
SSgA® Prime Money Market Fund | 0.187 | % | 4,912,319 | 4,912,319 | ||||||||
TOTAL SHORT TERM INVESTMENTS | ||||||||||||
(Cost $4,912,319) | 4,912,319 | |||||||||||
TOTAL INVESTMENTS 99.37% | ||||||||||||
(Cost $167,705,138) | $ | 161,732,715 | ||||||||||
Other Assets In Excess Of Liabilities 0.63% | 1,031,045 | |||||||||||
NET ASSETS 100.00% | $ | 162,763,760 |
See Notes to Financial Statements. | |
16 | www.cullenfunds.com |
Cullen Emerging Markets High Dividend Fund | Schedule of Investments |
December 31, 2015 (Unaudited) |
ADR | - | American Depository Receipt. ADRs are depository receipts for foreign securities denominated in U.S. dollars and traded on U.S. exchanges. |
AG | - | Aktiengesellschaft is a German term that refers to a corporation that is limited by shares, i.e., owned by shareholders. |
AS | - | Andonim Sirketi, Joint Stock Company in Turkey. |
Bhd | - | Berhad, Public Limited Company in Malaysia. |
Ltd. | - | Limited. |
OAO | - | Otkrytoe Aktsionernoe Obschestvo is the Russian term for Open Joint Stock Company. |
OJSC | - | Open Joint Stock Company. |
PCL | - | Public Company Limited. |
PLC | - | Public Limited Company. |
PT | - | Perseroan Terbatas, meaning "private limited", which is the equivalent of an incorporated entity in the U.S. |
REIT | - | Real Estate Investment Trust. |
S de RL de CV | - | Sociedad de Responsabilidad Limitada de Capital Variable. |
SA | - | Generally designated corporations in various countries, mostly those employing civil law. |
SA de CV | - | Sociedad Anonima de Capital Variable. |
SAB de CV | - | A variable capital company. |
Tbk | - | Terbuka is appended after the corporation name if the shares become publicly listed for trading. |
Tbk PT | - | Terbuka is the Indonesian term for limited liability company. |
(a) | Non-Income Producing Security. |
Sector | % of Net | Value | ||||||
Diversification | Assets | (Note 2) | ||||||
COMMON STOCKS | ||||||||
Financials | 28.09 | % | $ | 45,720,224 | ||||
Technology | 10.26 | 16,697,530 | ||||||
Consumer, Cyclical | 8.75 | 14,221,887 | ||||||
Industrials | 8.02 | 13,057,855 | ||||||
Consumer Staples | 5.84 | 9,501,645 | ||||||
Consumer Discretionary | 5.82 | 9,476,504 | ||||||
Information Technology | 4.69 | 7,646,440 | ||||||
Telecommunication Services | 4.02 | 6,545,474 | ||||||
Consumer, Non-cyclical | 3.17 | 5,167,711 | ||||||
Energy | 3.14 | 5,103,474 | ||||||
Materials | 2.29 | 3,737,640 | ||||||
Health Care | 1.77 | 2,871,994 | ||||||
Real Estate Investment Trusts | 1.46 | 2,371,789 | ||||||
Communications | 0.96 | 1,571,561 | ||||||
Telecommunications | 0.67 | 1,083,785 | ||||||
TOTAL COMMON STOCKS | 88.95 | 144,775,513 | ||||||
PARTICIPATORY NOTES | ||||||||
Financials | 3.35 | 5,448,971 | ||||||
Telecommunication Services | 2.64 | 4,301,939 | ||||||
Utilities | 1.40 | 2,286,153 | ||||||
Industrials | 0.01 | 7,820 | ||||||
TOTAL PARTICIPATORY NOTES | 7.40 | 12,044,883 | ||||||
SHORT TERM INVESTMENTS | 3.02 | 4,912,319 | ||||||
TOTAL INVESTMENTS | 99.37 | % | $ | 161,732,715 | ||||
Other Assets In Excess Of Liabilities | 0.63 | 1,031,045 | ||||||
TOTAL NET ASSETS | 100.00 | % | $ | 162,763,760 |
Percentages are stated as a percent of net assets.
See Notes to Financial Statements. | |
Semi-Annual Report | December 31, 2015 | 17 |
Cullen Enhanced Equity Income Fund | Schedule of Investments |
December 31, 2015 (Unaudited) |
Value | ||||||||
Shares | (Note 2) | |||||||
COMMON STOCKS - 95.54% | ||||||||
Aerospace & Defense - 5.91% | ||||||||
The Boeing Co.(a) | 1,020 | $ | 147,482 | |||||
Raytheon Co. | 1,180 | 146,945 | ||||||
294,427 | ||||||||
Communications Equipment - 4.56% | ||||||||
Cisco Systems, Inc. | 4,620 | 125,456 | ||||||
Corning, Inc.(a) | 5,580 | 102,002 | ||||||
227,458 | ||||||||
Distributors - 2.50% | ||||||||
Genuine Parts Co. | 1,450 | 124,541 | ||||||
Diversified Banks - 6.29% | ||||||||
HSBC Holdings PLC - Sponsored ADR | 3,240 | 127,883 | ||||||
Wells Fargo & Co.(a) | 3,420 | 185,911 | ||||||
313,794 | ||||||||
Diversified Chemicals - 2.98% | ||||||||
EI du Pont de Nemours & Co.(a) | 2,230 | 148,518 | ||||||
Electric - 4.52% | ||||||||
Edison International | 2,080 | 123,157 | ||||||
PPL Corp.(a) | 3,000 | 102,390 | ||||||
225,547 | ||||||||
Household Products - 3.02% | ||||||||
Unilever NV | 3,470 | 150,320 | ||||||
Industrial Conglomerates - 3.08% | ||||||||
General Electric Co.(a) | 4,930 | 153,569 | ||||||
Insurance - 3.05% | ||||||||
ACE Ltd.(a) | 1,300 | 151,905 | ||||||
Integrated Oil & Gas - 7.06% | ||||||||
Chevron Corp.(a) | 1,620 | 145,735 | ||||||
ConocoPhillips(a) | 2,220 | 103,652 | ||||||
Royal Dutch Shell PLC, Class B - Sponsored ADR | 2,230 | 102,669 | ||||||
352,056 | ||||||||
Integrated Telecommunication - 1.95% | ||||||||
BCE, Inc. | 2,520 | 97,322 | ||||||
Integrated Telecommunication Services - 3.05% | ||||||||
AT&T, Inc. | 4,420 | 152,092 | ||||||
Life & Health Insurance - 3.05% | ||||||||
MetLife, Inc.(a) | 3,150 | 151,862 |
Value | ||||||||
Shares | (Note 2) | |||||||
Media - 2.22% | ||||||||
Shaw Communications, Inc., Class B(b) | 6,430 | $ | 110,532 | |||||
Miscellaneous Manufacturing - 4.57% | ||||||||
Eaton Corp. PLC(a) | 1,980 | 103,039 | ||||||
Siemens AG - Sponsored ADR(b) | 1,300 | 125,028 | ||||||
228,067 | ||||||||
Oil & Gas - 2.47% | ||||||||
Exxon Mobil Corp.(a) | 1,580 | 123,161 | ||||||
Other Diversified Financial Services - 2.98% | ||||||||
JPMorgan Chase & Co. | 2,250 | 148,568 | ||||||
Pharmaceuticals - 14.02% | ||||||||
GlaxoSmithKline PLC - Sponsored ADR | 2,530 | 102,085 | ||||||
Johnson & Johnson(a) | 1,680 | 172,570 | ||||||
Merck & Co., Inc.(a) | 2,830 | 149,481 | ||||||
Novartis AG - Sponsored ADR | 1,460 | 125,618 | ||||||
Pfizer, Inc. | 4,620 | 149,134 | ||||||
698,888 | ||||||||
Semiconductors - 2.94% | ||||||||
Intel Corp.(a) | 4,250 | 146,413 | ||||||
Specialized REITs - 3.17% | ||||||||
Welltower, Inc. - REIT | 2,320 | 157,830 | ||||||
Systems Software - 4.07% | ||||||||
Microsoft Corp.(a) | 2,030 | 112,624 | ||||||
Symantec Corp. | 4,300 | 90,300 | ||||||
202,924 | ||||||||
Tobacco - 6.03% | ||||||||
Altria Group, Inc.(a) | 2,600 | 151,346 | ||||||
Philip Morris International, Inc. | 1,700 | 149,447 | ||||||
300,793 | ||||||||
Wireless Telecommunication Services - 2.05% | ||||||||
Vodafone Group PLC - Sponsored ADR | 3,170 | 102,264 | ||||||
TOTAL COMMON STOCKS | ||||||||
(Cost $4,781,074) | 4,762,851 |
7-Day | Value | |||||||||||
Yield | Shares | (Note 2) | ||||||||||
SHORT TERM INVESTMENTS - 4.70% | ||||||||||||
SSgA® Prime Money Market Fund | 0.187 | % | 234,260 | 234,260 | ||||||||
TOTAL SHORT TERM INVESTMENTS | ||||||||||||
(Cost $234,260) | 234,260 | |||||||||||
See Notes to Financial Statements. | |
18 | www.cullenfunds.com |
Cullen Enhanced Equity Income Fund | Schedule of Investments |
December 31, 2015 (Unaudited) |
Value | ||||
(Note 2) | ||||
TOTAL INVESTMENTS 100.24% | ||||
(Cost $5,015,334) | $ | 4,997,111 | ||
Liabilities In Excess Of Other Assets (0.24)% | (11,932 | ) | ||
NET ASSETS 100.00% | $ | 4,985,179 |
Number of | ||||||||
SCHEDULE OF WRITTEN OPTIONS | Contracts | Value | ||||||
CALL OPTIONS WRITTEN (0.34%) | ||||||||
ACE Ltd., Expires January, 2016, Exercise Price $120.00 | (7 | ) | $ | (385 | ) | |||
Altria Group, Inc., Expires January, 2016, Exercise Price $59.00 | (13 | ) | (585 | ) | ||||
The Boeing Co., Expires January, 2016, Exercise Price $145.00 | (6 | ) | (1,260 | ) | ||||
Chevron Corp., Expires January, 2016, Exercise Price $95.00 | (9 | ) | (360 | ) | ||||
ConocoPhillips, Expires January, 2016, Exercise Price $48.00 | (12 | ) | (1,116 | ) | ||||
Corning, Inc., Expires January, 2016, Exercise Price $19.00 | (55 | ) | (770 | ) | ||||
Eaton Corp. PLC, Expires January, 2016, Exercise Price $53.00 | (10 | ) | (750 | ) | ||||
EI du Pont de Nemours & Co., Expires January, 2016, Exercise Price $65.00 | (12 | ) | (3,096 | ) | ||||
Exxon Mobil Corp., Expires January, 2016, Exercise Price $80.50 | (8 | ) | (320 | ) | ||||
General Electric Co., Expires January, 2016, Exercise Price $31.00 | (25 | ) | (1,375 | ) | ||||
Intel Corp., Expires January, 2016, Exercise Price $35.50 | (22 | ) | (836 | ) | ||||
Johnson & Johnson, Expires January, 2016, Exercise Price $104.00 | (9 | ) | (585 | ) | ||||
Merck & Co. Inc, Expires January, 2016, Exercise Price $52.50 | (14 | ) | (1,470 | ) | ||||
MetLife, Inc., Expires January, 2016, Exercise Price $48.50 | (16 | ) | (1,248 | ) | ||||
Microsoft Corp., Expires January, 2016, Exercise Price $56.00 | (11 | ) | (660 | ) | ||||
PPL Corp., Expires January, 2016, Exercise Price $35.00 | (30 | ) | (510 | ) |
Number of | ||||||||
SCHEDULE OF WRITTEN OPTIONS | Contracts | Value | ||||||
CALL OPTIONS WRITTEN (continued) | ||||||||
Wells Fargo & Co., Expires January, 2016, Exercise Price $55.50 | (34 | ) | $ | (1,564 | ) | |||
TOTAL CALL OPTIONS WRITTEN | ||||||||
(Premiums received $15,904) | (16,890 | ) | ||||||
TOTAL WRITTEN OPTIONS | ||||||||
(Premiums received $15,904) | $ | (16,890 | ) |
ADR | - | American Depository Receipt. ADRs are depository receipts for foreign securities denominated in U.S. dollars and traded on U.S. exchanges. |
AG | - | Aktiengesellschaft is a German term that refers to a corporation that is limited by shares, i.e., owned by shareholders. |
Ltd. | - | Limited. |
NV | - | Naamloze Vennootschap is the Dutch term for a public limited liability corporation. |
PLC | - | Public Limited Company. |
REIT | - | Real Estate Investment Trust. |
(a) | Pledged security; a portion or all of the security is pledged as collateral for written options as of December 31, 2015. |
(b) | Non-Income Producing Security. |
See Notes to Financial Statements. | |
Semi-Annual Report | December 31, 2015 | 19 |
Cullen Funds Trust | Statements of Assets and Liabilities |
December 31, 2015 (Unaudited) |
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 | $ | 246,200,148 | $ | 1,964,730,763 | $ | 5,761,478 | $ | 29,219,441 | $ | 161,732,715 | $ | 4,997,111 | ||||||||||||
Cash | – | – | – | – | – | 570 | ||||||||||||||||||
Foreign currencies, at value (Cost $123,128, $–, $–, $–, $677,421 and $–, respectively) | 123,127 | – | – | – | 676,597 | – | ||||||||||||||||||
Receivable for fund shares sold | 365,348 | 2,321,480 | 3 | – | 1,609,706 | – | ||||||||||||||||||
Dividends and interest receivable | 1,392,714 | 3,997,828 | 3,102 | 31,516 | 186,767 | 6,301 | ||||||||||||||||||
Receivable due from Investment Adviser | – | – | 17,144 | 3,722 | – | 11,632 | ||||||||||||||||||
Prepaid expenses and other assets | 43,024 | 69,522 | 25,803 | 21,486 | 26,724 | – | ||||||||||||||||||
Total Assets | 248,124,361 | 1,971,119,593 | 5,807,530 | 29,276,165 | 164,232,509 | 5,015,614 | ||||||||||||||||||
LIABILITIES: | ||||||||||||||||||||||||
Written options, at value (Premiums received $–, $–, $–, $–, $– and $15,904, respectively) | – | – | – | – | – | 16,890 | ||||||||||||||||||
Payable to Investment Advisor | 175,581 | 1,152,406 | – | – | 86,363 | – | ||||||||||||||||||
Payable for shares redeemed | 2,206,917 | 1,805,474 | – | 1,800 | 439,999 | – | ||||||||||||||||||
Distribution fees payable | 13,571 | 161,654 | 274 | 531 | 5,322 | 273 | ||||||||||||||||||
Trustees' fees and expenses payable | 26,687 | 26,687 | 26,687 | 26,687 | 26,687 | 4,040 | ||||||||||||||||||
Accrued expenses and other liabilities | 81,362 | 194,247 | 26,818 | 29,307 | 910,378 | 9,232 | ||||||||||||||||||
Total Liabilities | 2,504,118 | 3,340,468 | 53,779 | 58,325 | 1,468,749 | 30,435 | ||||||||||||||||||
NET ASSETS | $ | 245,620,243 | $ | 1,967,779,125 | $ | 5,753,751 | $ | 29,217,840 | $ | 162,763,760 | $ | 4,985,179 | ||||||||||||
NET ASSETS CONSIST OF | ||||||||||||||||||||||||
Paid-in capital | $ | 267,562,901 | $ | 1,298,430,458 | $ | 5,404,467 | $ | 22,781,569 | $ | 197,580,580 | $ | 5,000,000 | ||||||||||||
Accumulated net investment income/(loss) | 105,900 | 552,903 | (2,062 | ) | 407 | (1,905,393 | ) | 4,388 | ||||||||||||||||
Accumulated net realized gain/(loss) on investments, written options and foreign currency related transactions | (44,481,417 | ) | 28,175,984 | (336,664 | ) | (44,907 | ) | (26,936,429 | ) | – | ||||||||||||||
Net unrealized appreciation/(depreciation) in value on investments, written options and foreign currency related transactions | 22,432,859 | 640,619,780 | 688,010 | 6,480,771 | (5,974,998 | ) | (19,209 | ) | ||||||||||||||||
NET ASSETS | $ | 245,620,243 | $ | 1,967,779,125 | $ | 5,753,751 | $ | 29,217,840 | $ | 162,763,760 | $ | 4,985,179 | ||||||||||||
INVESTMENTS, AT COST | $ | 223,685,860 | $ | 1,324,110,983 | $ | 5,073,468 | $ | 22,738,670 | $ | 167,705,138 | $ | 5,015,334 |
See Notes to Financial Statements. | |
20 | www.cullenfunds.com |
Cullen Funds Trust | Statements of Assets and Liabilities |
December 31, 2015 (Unaudited) |
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 | $ | 9.46 | $ | 16.57 | $ | 11.83 | $ | 13.11 | $ | 8.99 | $ | 9.97 | ||||||||||||
Net Assets | $ | 43,236,888 | $ | 376,425,051 | $ | 883,561 | $ | 1,113,432 | $ | 11,176,495 | $ | 498,491 | ||||||||||||
Shares issued (unlimited number of beneficial interest authorized, $0.001 par value) | 4,570,721 | 22,711,001 | 74,678 | 84,956 | 1,242,953 | 50,000 | ||||||||||||||||||
Class C: | ||||||||||||||||||||||||
Net Asset Value, offering and redemption price per share | $ | 9.43 | $ | 16.46 | $ | 11.33 | $ | 13.08 | $ | 8.93 | $ | 9.97 | ||||||||||||
Net Assets | $ | 3,416,235 | $ | 89,666,400 | $ | 95,867 | $ | 342,046 | $ | 3,269,119 | $ | 498,326 | ||||||||||||
Shares issued (unlimited number of beneficial interest authorized, $0.001 par value) | 362,269 | 5,446,298 | 8,461 | 26,147 | 365,935 | 50,000 | ||||||||||||||||||
Class I: | ||||||||||||||||||||||||
Net Asset Value, offering and redemption price per share | $ | 9.52 | $ | 16.58 | $ | 11.99 | $ | 13.09 | $ | 9.04 | $ | 9.97 | ||||||||||||
Net Assets | $ | 198,730,177 | $ | 1,493,672,391 | $ | 4,774,323 | $ | 27,762,362 | $ | 148,318,146 | $ | 3,988,362 | ||||||||||||
Shares issued (unlimited number of beneficial interest authorized, $0.001 par value) | 20,865,804 | 90,080,364 | 398,156 | 2,121,323 | 16,409,877 | 400,000 | ||||||||||||||||||
Class R1: | ||||||||||||||||||||||||
Net Asset Value, offering and redemption price per share | $ | 10.87 | $ | 14.72 | N/A | N/A | N/A | N/A | ||||||||||||||||
Net Assets | $ | 58,732 | $ | 4,626,216 | N/A | N/A | N/A | N/A | ||||||||||||||||
Shares issued (unlimited number of beneficial interest authorized, $0.001 par value) | 5,404 | 314,288 | N/A | N/A | N/A | N/A | ||||||||||||||||||
Class R2: | ||||||||||||||||||||||||
Net Asset Value, offering and redemption price per share | $ | 10.79 | $ | 14.86 | N/A | N/A | N/A | N/A | ||||||||||||||||
Net Assets | $ | 178,211 | $ | 3,389,067 | N/A | N/A | N/A | N/A | ||||||||||||||||
Shares issued (unlimited number of beneficial interest authorized, $0.001 par value) | 16,516 | 227,997 | N/A | N/A | N/A | N/A |
See Notes to Financial Statements. | |
Semi-Annual Report | December 31, 2015 | 21 |
Cullen Funds Trust | Statements of Operations |
Six Months Ended December 31, 2015 (Unaudited) |
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(a) | |||||||||||||||||||
INVESTMENT INCOME | ||||||||||||||||||||||||
Dividends* | $ | 3,527,288 | $ | 33,505,406 | $ | 34,280 | $ | 269,927 | $ | 3,067,124 | $ | 6,301 | ||||||||||||
Total Investment Income | 3,527,288 | 33,505,406 | 34,280 | 269,927 | 3,067,124 | 6,301 | ||||||||||||||||||
EXPENSES | ||||||||||||||||||||||||
Investment advisory fees (Note 6) | 1,432,231 | 10,201,842 | 30,373 | 148,375 | 831,654 | 2,186 | ||||||||||||||||||
Administrative fees | 44,003 | 264,839 | 1,976 | 5,138 | 29,585 | 174 | ||||||||||||||||||
Distribution fees (Note 7) | ||||||||||||||||||||||||
Retail | 63,710 | 484,376 | 1,187 | 1,362 | 21,257 | 55 | ||||||||||||||||||
Class C | 18,598 | 450,037 | 444 | 1,684 | 18,785 | 219 | ||||||||||||||||||
Class R1 | 227 | 10,585 | N/A | N/A | N/A | N/A | ||||||||||||||||||
Class R2 | 209 | 3,901 | N/A | N/A | N/A | N/A | ||||||||||||||||||
Registration and filing fees | 38,989 | 56,130 | 22,308 | 21,242 | 24,601 | 2,183 | ||||||||||||||||||
Custody fees | 45,428 | 59,132 | 1,695 | 1,900 | 116,708 | 172 | ||||||||||||||||||
Transfer agent fees | 45,594 | 173,929 | 19,709 | 19,774 | 21,535 | 1,748 | ||||||||||||||||||
Legal fees | 17,303 | 17,303 | 15,529 | 17,303 | 17,303 | 1,395 | ||||||||||||||||||
Professional fees | 22,274 | 19,673 | 19,673 | 19,673 | 19,673 | 3,268 | ||||||||||||||||||
Shareholder reports | 7,094 | 60,239 | 3 | 417 | 3,293 | 52 | ||||||||||||||||||
Trustees' fees | 46,687 | 46,687 | 46,687 | 46,687 | 46,687 | 4,041 | ||||||||||||||||||
Other expenses | 7,687 | 35,182 | 1,255 | 1,595 | 5,576 | 239 | ||||||||||||||||||
Total Expenses | 1,790,034 | 11,883,855 | 160,839 | 285,150 | 1,156,657 | 15,732 | ||||||||||||||||||
Less expenses reimbursed from Investment Advisor (Note 6) | ||||||||||||||||||||||||
Retail | (48,351 | ) | (623,530 | ) | (20,136 | ) | (6,288 | ) | (28,034 | ) | (1,382 | ) | ||||||||||||
Class C | (3,589 | ) | (145,058 | ) | (1,899 | ) | (1,942 | ) | (6,351 | ) | (1,382 | ) | ||||||||||||
Class I | (222,851 | ) | (2,502,134 | ) | (106,800 | ) | (162,593 | ) | (250,575 | ) | (11,055 | ) | ||||||||||||
Class R1 | N/A | (784 | ) | N/A | N/A | N/A | N/A | |||||||||||||||||
Class R2 | N/A | (903 | ) | N/A | N/A | N/A | N/A | |||||||||||||||||
Net Expenses | 1,515,243 | 8,611,446 | 32,004 | 114,327 | 871,697 | 1,913 | ||||||||||||||||||
Net Investment Income | 2,012,045 | 24,893,960 | 2,276 | 155,600 | 2,195,427 | 4,388 | ||||||||||||||||||
Net realized gain/(loss) on: | ||||||||||||||||||||||||
Investments | (6,971,109 | ) | 41,007,475 | (336,155 | ) | – | (16,608,697 | ) | – | |||||||||||||||
Foreign currency related transactions | (124,712 | ) | – | – | – | (107,963 | ) | – | ||||||||||||||||
Total net realized gain/(loss) | (7,095,821 | ) | 41,007,475 | (336,155 | ) | – | (16,716,660 | ) | – | |||||||||||||||
Net change in unrealized appreciation/(depreciation) on: | ||||||||||||||||||||||||
Investments | (14,624,241 | ) | 2,452,158 | (596,817 | ) | (1,108,261 | ) | (12,179,880 | ) | (18,223 | ) | |||||||||||||
Written options | – | – | – | – | – | (986 | ) | |||||||||||||||||
Foreign currency related transactions | (16,228 | ) | – | – | – | 1,201 | – | |||||||||||||||||
Total net change in unrealized appreciation/(depreciation) | (14,640,469 | ) | 2,452,158 | (596,817 | ) | (1,108,261 | ) | (12,178,679 | ) | (19,209 | ) | |||||||||||||
NET REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS | (21,736,290 | ) | 43,459,633 | (932,972 | ) | (1,108,261 | ) | (28,895,339 | ) | (19,209 | ) | |||||||||||||
NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | (19,724,245 | ) | $ | 68,353,593 | $ | (930,696 | ) | $ | (952,661 | ) | $ | (26,699,912 | ) | $ | (14,821 | ) | |||||||
*Foreign taxes withheld on dividends | $ | 340,980 | $ | 201,304 | $ | – | $ | 724 | $ | 307,870 | $ | – |
(a) | Commencement of operations was December 16, 2015. |
See Notes to Financial Statements. | |
22 | www.cullenfunds.com |
Cullen Funds Trust | Statements of Changes in Net Assets |
Cullen International High Dividend Fund | Cullen High Dividend Equity Fund | |||||||||||||||
Six Months Ended | Six Months Ended | |||||||||||||||
December 31, 2015 | Year Ended | December 31, 2015 | Year Ended | |||||||||||||
(Unaudited) | June 30, 2015 | (Unaudited) | June 30, 2015 | |||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income | $ | 2,012,045 | $ | 10,957,451 | $ | 24,893,960 | $ | 53,596,225 | ||||||||
Net realized gain/(loss) on investments, written options and foreign currency related transactions | (7,095,821 | ) | (12,597,132 | ) | 41,007,475 | 41,639,048 | ||||||||||
Net change in unrealized appreciation/(depreciation) on investments, written options and foreign currency related transactions | (14,640,469 | ) | (34,909,809 | ) | 2,452,158 | (85,880,462 | ) | |||||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations | (19,724,245 | ) | (36,549,490 | ) | 68,353,593 | 9,354,811 | ||||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||
From net investment income | ||||||||||||||||
Retail | (279,730 | ) | (1,573,042 | ) | (4,317,845 | ) | (10,159,231 | ) | ||||||||
Class C | (9,161 | ) | (75,243 | ) | (698,049 | ) | (1,543,651 | ) | ||||||||
Class I | (1,592,460 | ) | (8,834,624 | ) | (19,241,365 | ) | (43,374,721 | ) | ||||||||
Class R1 | (262 | ) | (1,951 | ) | (46,048 | ) | (99,745 | ) | ||||||||
Class R2 | (755 | ) | (3,955 | ) | (37,750 | ) | (78,580 | ) | ||||||||
From net realized gains | ||||||||||||||||
Retail | – | – | (9,896,556 | ) | (14,975,631 | ) | ||||||||||
Class C | – | – | (2,372,777 | ) | (3,011,594 | ) | ||||||||||
Class I | – | – | (39,651,616 | ) | (57,229,953 | ) | ||||||||||
Class R1 | – | – | (136,062 | ) | (170,488 | ) | ||||||||||
Class R2 | – | – | (98,733 | ) | (125,754 | ) | ||||||||||
Net Decrease in Net Assets from Distributions | (1,882,368 | ) | (10,488,815 | ) | (76,496,801 | ) | (130,769,348 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS (NOTE 3) | ||||||||||||||||
Shares sold | ||||||||||||||||
Retail | 5,088,360 | 30,092,826 | 27,480,959 | 129,280,862 | ||||||||||||
Class C | 155,483 | 763,697 | 2,282,762 | 14,756,411 | ||||||||||||
Class I | 44,401,121 | 212,006,066 | 78,197,184 | 394,064,668 | ||||||||||||
Class R1 | 661 | 2,706 | 54,085 | 134,750 | ||||||||||||
Class R2 | 10,317 | 115,901 | 141,013 | 1,080,736 | ||||||||||||
Dividends reinvested | ||||||||||||||||
Retail | 262,828 | 1,492,146 | 13,393,540 | 23,233,400 | ||||||||||||
Class C | 7,850 | 64,164 | 2,943,543 | 4,273,176 | ||||||||||||
Class I | 851,912 | 3,339,290 | 39,657,925 | 67,996,191 | ||||||||||||
Class R1 | 262 | 1,951 | 182,110 | 270,233 | ||||||||||||
Class R2 | 755 | 3,955 | 136,483 | 204,334 | ||||||||||||
Shares redeemed | ||||||||||||||||
Retail | (14,984,919 | ) | (32,734,287 | ) | (72,388,584 | ) | (241,605,844 | ) | ||||||||
Class C | (418,355 | ) | (242,317 | ) | (6,692,792 | ) | (12,940,320 | ) | ||||||||
Class I | (73,271,082 | ) | (320,828,135 | ) | (253,917,543 | ) | (640,010,489 | ) | ||||||||
Class R1 | (35,317 | ) | (1,916 | ) | (126,112 | ) | (487,022 | ) | ||||||||
Class R2 | (791 | ) | (6,071 | ) | (228,948 | ) | (939,212 | ) | ||||||||
Net Decrease in Net Assets Derived from Capital Share Transactions | (37,930,915 | ) | (105,930,024 | ) | (168,884,375 | ) | (260,688,126 | ) | ||||||||
Net Decrease in Net Assets | (59,537,528 | ) | (152,968,329 | ) | (177,027,583 | ) | (382,102,663 | ) | ||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 305,157,771 | 458,126,100 | 2,144,806,708 | 2,526,909,371 | ||||||||||||
End of period * | $ | 245,620,243 | $ | 305,157,771 | $ | 1,967,779,125 | $ | 2,144,806,708 | ||||||||
*Includes undistributed net investment income/(loss) of: | $ | 105,900 | $ | (23,777 | ) | $ | 552,903 | $ | – |
See Notes to Financial Statements. | |
Semi-Annual Report | December 31, 2015 | 23 |
Cullen Funds Trust | Statements of Changes in Net Assets |
Cullen Small Cap Value Fund | Cullen Value Fund | |||||||||||||||
Six Months Ended | Six Months Ended | |||||||||||||||
December 31, 2015 | Year Ended | December 31, 2015 | Year Ended | |||||||||||||
(Unaudited) | June 30, 2015 | (Unaudited) | June 30, 2015 | |||||||||||||
OPERATIONS | ||||||||||||||||
Net investment income/(loss) | $ | 2,276 | $ | (6,340 | ) | $ | 155,600 | $ | 379,540 | |||||||
Net realized gain/(loss) on investments, written options and foreign currency related transactions | (336,155 | ) | 601,545 | – | 438,835 | |||||||||||
Net change in unrealized depreciation on investments, written options and foreign currency related transactions | (596,817 | ) | (1,210,752 | ) | (1,108,261 | ) | (548,600 | ) | ||||||||
Net Increase/(Decrease) in Net Assets Resulting from Operations | (930,696 | ) | (615,547 | ) | (952,661 | ) | 269,775 | |||||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||||||
From net investment income | ||||||||||||||||
Retail | – | – | (4,449 | ) | (12,587 | ) | ||||||||||
Class C | – | – | (111 | ) | (1,214 | ) | ||||||||||
Class I | – | – | (150,633 | ) | (380,535 | ) | ||||||||||
From net realized gains | ||||||||||||||||
Retail | (22,978 | ) | (318,045 | ) | (17,950 | ) | – | |||||||||
Class C | (2,595 | ) | (15,527 | ) | (5,503 | ) | – | |||||||||
Class I | (122,280 | ) | (689,361 | ) | (445,493 | ) | – | |||||||||
Net Decrease in Net Assets from Distributions | (147,853 | ) | (1,022,933 | ) | (624,139 | ) | (394,336 | ) | ||||||||
CAPITAL SHARE TRANSACTIONS (NOTE 3) | ||||||||||||||||
Shares sold | ||||||||||||||||
Retail | 14,712 | 529,723 | 242,796 | 634,310 | ||||||||||||
Class C | 24,000 | 10,000 | 35,015 | 56,000 | ||||||||||||
Class I | 195,068 | 1,829,922 | 1,135,625 | 2,168,442 | ||||||||||||
Dividends reinvested | ||||||||||||||||
Retail | 22,908 | 317,721 | 22,339 | 12,562 | ||||||||||||
Class C | 2,595 | 15,527 | 5,564 | 613 | ||||||||||||
Class I | 122,280 | 689,361 | 582,574 | 380,535 | ||||||||||||
Shares redeemed | ||||||||||||||||
Retail | (77,436 | ) | (1,631,595 | ) | (12,046 | ) | (813,810 | ) | ||||||||
Class C | (1,500 | ) | (31,137 | ) | (4,500 | ) | (300 | ) | ||||||||
Class I | (271,901 | ) | (3,020,081 | ) | (744,970 | ) | (1,472,769 | ) | ||||||||
Net Increase/(Decrease) in Net Assets Derived from Capital Share Transactions | 30,726 | (1,290,559 | ) | 1,262,397 | 965,583 | |||||||||||
Net Increase/(Decrease) in Net Assets | (1,047,823 | ) | (2,929,039 | ) | (314,403 | ) | 841,022 | |||||||||
NET ASSETS | ||||||||||||||||
Beginning of period | 6,801,574 | 9,730,613 | 29,532,243 | 28,691,221 | ||||||||||||
End of period * | $ | 5,753,751 | $ | 6,801,574 | $ | 29,217,840 | $ | 29,532,243 | ||||||||
*Includes undistributed net investment income/(loss) of: | $ | (2,062 | ) | $ | (4,338 | ) | $ | 407 | $ | – |
See Notes to Financial Statements. | |
24 | www.cullenfunds.com |
Cullen Funds Trust | Statements of Changes in Net Assets |
Cullen Enhanced | ||||||||||||
Cullen Emerging Markets | Equity Income | |||||||||||
High Dividend Fund | Fund | |||||||||||
Six Months Ended | Period Ended | |||||||||||
December 31, 2015 | Year Ended | December 31, | ||||||||||
(Unaudited) | June 30, 2015 | 2015(a) | ||||||||||
OPERATIONS | ||||||||||||
Net investment income | $ | 2,195,427 | $ | 3,362,449 | $ | 4,388 | ||||||
Net realized loss on investments, written options and foreign currency related transactions | (16,716,660 | ) | (7,713,921 | ) | – | |||||||
Net change in unrealized depreciation on investments, written options and foreign currency related transactions | (12,178,679 | ) | (311,733 | ) | (19,209 | ) | ||||||
Net Decrease in Net Assets Resulting from Operations | (26,699,912 | ) | (4,663,205 | ) | (14,821 | ) | ||||||
DISTRIBUTIONS TO SHAREHOLDERS | ||||||||||||
From net investment income | ||||||||||||
Retail | (361,010 | ) | (729,243 | ) | – | |||||||
Class C | (99,373 | ) | (107,883 | ) | – | |||||||
Class I | (4,433,171 | ) | (3,601,581 | ) | – | |||||||
Net Decrease in Net Assets from Distributions | (4,893,554 | ) | (4,438,707 | ) | – | |||||||
CAPITAL SHARE TRANSACTIONS (NOTE 3) | ||||||||||||
Shares sold | ||||||||||||
Retail | 7,225,376 | 11,101,607 | 500,000 | |||||||||
Class C | 75,000 | 853,402 | 500,000 | |||||||||
Class I | 77,622,766 | 129,155,504 | 4,000,000 | |||||||||
Dividends reinvested | ||||||||||||
Retail | 346,111 | 704,549 | – | |||||||||
Class C | 99,373 | 107,611 | – | |||||||||
Class I | 4,375,231 | 3,544,409 | – | |||||||||
Shares redeemed | ||||||||||||
Retail | (17,091,246 | ) | (10,297,822 | ) | – | |||||||
Class C | (799,864 | ) | (319,408 | ) | – | |||||||
Class I | (57,377,123 | ) | (33,561,619 | ) | – | |||||||
Net Increase in Net Assets Derived from Capital Share Transactions | 14,475,624 | 101,288,235 | 5,000,000 | |||||||||
Net Increase/(Decrease) in Net Assets | (17,117,842 | ) | 92,186,321 | 4,985,179 | ||||||||
NET ASSETS | ||||||||||||
Beginning of period | 179,881,602 | 87,695,281 | – | |||||||||
End of period * | $ | 162,763,760 | $ | 179,881,602 | $ | 4,985,179 | ||||||
*Includes undistributed net investment income/(loss) of: | $ | (1,905,393 | ) | $ | 792,734 | $ | 4,388 |
(a) | Commencement of operations was December 16, 2015. |
See Notes to Financial Statements. | |
Semi-Annual Report | December 31, 2015 | 25 |
Cullen Funds Trust |
Net Realized | ||||||||||||||||||||||||||||
and | Distributions | |||||||||||||||||||||||||||
Net Asset Value | Unrealized | Total from | from | |||||||||||||||||||||||||
Beginning of | Net Investment | Gain/(Loss) | Investment | Net Investment | Total | Net Asset Value | ||||||||||||||||||||||
Year or Period End | Period | Income/(Loss)(a) | on Investments | Operations | Income | Distributions | End of Period | |||||||||||||||||||||
Cullen International High Dividend Fund | ||||||||||||||||||||||||||||
Retail | ||||||||||||||||||||||||||||
12/31/2015(d) | $ | 10.22 | 0.06 | (0.76 | ) | (0.70 | ) | (0.06 | ) | (0.06 | ) | $ | 9.46 | |||||||||||||||
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 | |||||||||||||||||
6/30/2013 | $ | 9.01 | 0.26 | 0.99 | 1.25 | (0.22 | ) | (0.22 | ) | $ | 10.04 | |||||||||||||||||
6/30/2012 | $ | 10.44 | 0.27 | (1.41 | ) | (1.14 | ) | (0.29 | ) | (0.29 | ) | $ | 9.01 | |||||||||||||||
6/30/2011 | $ | 8.21 | 0.25 | 2.24 | 2.49 | (0.26 | ) | (0.26 | ) | $ | 10.44 | |||||||||||||||||
Class C | ||||||||||||||||||||||||||||
12/31/2015(d) | $ | 10.19 | 0.02 | (0.76 | ) | (0.74 | ) | (0.02 | ) | (0.02 | ) | $ | 9.43 | |||||||||||||||
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 | |||||||||||||||||
6/30/2013 | $ | 8.99 | 0.17 | 1.00 | 1.17 | (0.14 | ) | (0.14 | ) | $ | 10.02 | |||||||||||||||||
6/30/2012 | $ | 10.39 | 0.21 | (1.40 | ) | (1.19 | ) | (0.21 | ) | (0.21 | ) | $ | 8.99 | |||||||||||||||
6/30/2011 | $ | 8.18 | 0.17 | 2.23 | 2.40 | (0.19 | ) | (0.19 | ) | $ | 10.39 | |||||||||||||||||
Class I | ||||||||||||||||||||||||||||
12/31/2015(d) | $ | 10.29 | 0.07 | (0.77 | ) | (0.70 | ) | (0.07 | ) | (0.07 | ) | $ | 9.52 | |||||||||||||||
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 | |||||||||||||||||
6/30/2013 | $ | 9.07 | 0.34 | 0.94 | 1.28 | (0.25 | ) | (0.25 | ) | $ | 10.10 | |||||||||||||||||
6/30/2012 | $ | 10.48 | 0.33 | (1.44 | ) | (1.11 | ) | (0.30 | ) | (0.30 | ) | $ | 9.07 | |||||||||||||||
6/30/2011 | $ | 8.24 | 0.30 | 2.23 | 2.53 | (0.29 | ) | (0.29 | ) | $ | 10.48 | |||||||||||||||||
Class R1 | ||||||||||||||||||||||||||||
12/31/2015(d) | $ | 11.72 | 0.04 | (0.86 | ) | (0.82 | ) | (0.03 | ) | (0.03 | ) | $ | 10.87 | |||||||||||||||
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 | |||||||||||||||||
6/30/2013 | $ | 10.23 | 0.25 | 1.11 | 1.36 | (0.16 | ) | (0.16 | ) | $ | 11.43 | |||||||||||||||||
6/30/2012 | $ | 11.81 | 0.27 | (1.60 | ) | (1.33 | ) | (0.25 | ) | (0.25 | ) | $ | 10.23 | |||||||||||||||
6/30/2011 | $ | 9.16 | 0.23 | 2.63 | 2.86 | (0.21 | ) | (0.21 | ) | $ | 11.81 | |||||||||||||||||
Class R2 | ||||||||||||||||||||||||||||
12/31/2015(d) | $ | 11.64 | 0.06 | (0.86 | ) | (0.80 | ) | (0.05 | ) | (0.05 | ) | $ | 10.79 | |||||||||||||||
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 | |||||||||||||||||
6/30/2013 | $ | 10.17 | 0.26 | 1.11 | 1.37 | (0.19 | ) | (0.19 | ) | $ | 11.35 | |||||||||||||||||
6/30/2012 | $ | 11.73 | 0.30 | (1.59 | ) | (1.29 | ) | (0.27 | ) | (0.27 | ) | $ | 10.17 | |||||||||||||||
6/30/2011 | $ | 9.16 | 0.27 | 2.53 | 2.80 | (0.23 | ) | (0.23 | ) | $ | 11.73 |
(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) | Portfolio turnover is not annualized for periods less than one year. | |
(d) | Six months ended December 31, 2015 (unaudited). |
(e) | Annualized. |
See Notes to Financial Statements. | |
26 | 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 | Reimbursements | Reimbursements | Rate(c) | ||||||||||||||||||
(6.88% | ) | $ | 43,237 | 1.44 | %(e) | 1.25 | %(e) | 1.03 | %(e) | 1.22 | %(e) | 21 | % | |||||||||||
(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 | % | ||||||||||||
13.89% | $ | 53,713 | 1.54 | % | 1.25 | % | 2.35 | % | 2.64 | % | 14 | % | ||||||||||||
(10.83% | ) | $ | 36,004 | 1.72 | % | 1.25 | % | 2.49 | % | 2.96 | % | 36 | % | |||||||||||
30.49% | $ | 47,698 | 1.71 | % | 1.25 | % | 2.08 | % | 2.54 | % | 65 | % | ||||||||||||
(7.21% | ) | $ | 3,416 | 2.19 | %(e) | 2.00 | %(e) | 0.27 | %(e) | 0.46 | %(e) | 21 | % | |||||||||||
(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 | % | ||||||||||||
13.06% | $ | 2,383 | 2.29 | % | 2.00 | % | 1.43 | % | 1.72 | % | 14 | % | ||||||||||||
(11.35% | ) | $ | 2,093 | 2.47 | % | 2.00 | % | 1.88 | % | 2.36 | % | 36 | % | |||||||||||
29.50% | $ | 2,294 | 2.47 | % | 2.00 | % | 1.28 | % | 1.74 | % | 65 | % | ||||||||||||
(6.80% | ) | $ | 198,730 | 1.19 | %(e) | 1.00 | %(e) | 1.27 | %(e) | 1.46 | %(e) | 21 | % | |||||||||||
(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 | % | ||||||||||||
14.09% | $ | 258,951 | 1.28 | % | 1.00 | % | 3.04 | % | 3.32 | % | 14 | % | ||||||||||||
(10.48% | ) | $ | 55,909 | 1.47 | % | 1.00 | % | 3.08 | % | 3.54 | % | 36 | % | |||||||||||
30.82% | $ | 35,409 | 1.48 | % | 1.00 | % | 2.56 | % | 3.03 | % | 65 | % | ||||||||||||
(6.99% | ) | $ | 59 | 1.66 | %(e) | 1.66 | %(e) | 0.77 | %(e) | 0.77 | %(e) | 21 | % | |||||||||||
(8.73% | ) | $ | 101 | 1.64 | % | 1.64 | % | 2.09 | % | 2.09 | % | 44 | % | |||||||||||
17.95% | $ | 110 | 1.83 | % | 1.75 | % | 3.57 | % | 3.65 | % | 45 | % | ||||||||||||
13.32% | $ | 91 | 2.03 | % | 1.75 | % | 1.87 | % | 2.15 | % | 14 | % | ||||||||||||
(11.18% | ) | $ | 46 | 2.22 | % | 1.75 | % | 2.13 | % | 2.59 | % | 36 | % | |||||||||||
31.30% | $ | 52 | 2.22 | % | 1.75 | % | 1.56 | % | 2.02 | % | 65 | % | ||||||||||||
(6.89% | ) | $ | 178 | 1.43 | %(e) | 1.43 | %(e) | 1.02 | %(e) | 1.02 | %(e) | 21 | % | |||||||||||
(8.53% | ) | $ | 181 | 1.40 | % | 1.40 | % | 2.43 | % | 2.43 | % | 44 | % | |||||||||||
18.37% | $ | 86 | 1.58 | % | 1.50 | % | 3.85 | % | 3.93 | % | 45 | % | ||||||||||||
13.49% | $ | 69 | 1.79 | % | 1.50 | % | 1.98 | % | 2.27 | % | 14 | % | ||||||||||||
(10.91% | ) | $ | 55 | 1.97 | % | 1.50 | % | 2.39 | % | 2.86 | % | 36 | % | |||||||||||
30.70% | $ | 59 | 1.97 | % | 1.50 | % | 1.88 | % | 2.35 | % | 65 | % |
Semi-Annual Report | December 31, 2015 | 27 |
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 or Period End | Period | Income/(Loss)(a) | on Investments | Operations | Income | Capital Gains | Distributions | End of Period | ||||||||||||||||||||||||
Cullen High Dividend Equity Fund | ||||||||||||||||||||||||||||||||
Retail | ||||||||||||||||||||||||||||||||
12/31/2015(d) | $ | 16.64 | 0.19 | 0.38 | 0.57 | (0.19 | ) | (0.45 | ) | (0.64 | ) | $ | 16.57 | |||||||||||||||||||
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 | ||||||||||||||||||||
6/30/2013 | $ | 13.72 | 0.34 | 1.56 | 1.90 | (0.34 | ) | – | (0.34 | ) | $ | 15.28 | ||||||||||||||||||||
6/30/2012 | $ | 12.73 | 0.32 | 0.98 | 1.30 | (0.31 | ) | – | (0.31 | ) | $ | 13.72 | ||||||||||||||||||||
6/30/2011 | $ | 10.44 | 0.29 | 2.28 | 2.57 | (0.28 | ) | – | (0.28 | ) | $ | 12.73 | ||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
12/31/2015(d) | $ | 16.53 | 0.13 | 0.38 | 0.51 | (0.13 | ) | (0.45 | ) | (0.58 | ) | $ | 16.46 | |||||||||||||||||||
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 | ||||||||||||||||||||
6/30/2013 | $ | 13.68 | 0.24 | 1.54 | 1.78 | (0.24 | ) | – | (0.24 | ) | $ | 15.22 | ||||||||||||||||||||
6/30/2012 | $ | 12.72 | 0.22 | 0.98 | 1.20 | (0.24 | ) | – | (0.24 | ) | $ | 13.68 | ||||||||||||||||||||
6/30/2011 | $ | 10.43 | 0.20 | 2.28 | 2.48 | (0.19 | ) | – | (0.19 | ) | $ | 12.72 | ||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||
12/31/2015(d) | $ | 16.64 | 0.21 | 0.39 | 0.60 | (0.21 | ) | (0.45 | ) | (0.66 | ) | $ | 16.58 | |||||||||||||||||||
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 | ||||||||||||||||||||
6/30/2013 | $ | 13.72 | 0.38 | 1.56 | 1.94 | (0.38 | ) | – | (0.38 | ) | $ | 15.28 | ||||||||||||||||||||
6/30/2012 | $ | 12.73 | 0.35 | 0.98 | 1.33 | (0.34 | ) | – | (0.34 | ) | $ | 13.72 | ||||||||||||||||||||
6/30/2011 | $ | 10.44 | 0.32 | 2.28 | 2.60 | (0.31 | ) | – | (0.31 | ) | $ | 12.73 | ||||||||||||||||||||
Class R1 | ||||||||||||||||||||||||||||||||
12/31/2015(d) | $ | 14.84 | 0.13 | 0.35 | 0.48 | (0.15 | ) | (0.45 | ) | (0.60 | ) | $ | 14.72 | |||||||||||||||||||
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 | ||||||||||||||||||||
6/30/2013 | $ | 12.43 | 0.27 | 1.37 | 1.64 | (0.28 | ) | – | (0.28 | ) | $ | 13.79 | ||||||||||||||||||||
6/30/2012 | $ | 11.53 | 0.23 | 0.89 | 1.12 | (0.22 | ) | – | (0.22 | ) | $ | 12.43 | ||||||||||||||||||||
6/30/2011 | $ | 9.48 | 0.22 | 2.02 | 2.24 | (0.19 | ) | – | (0.19 | ) | $ | 11.53 | ||||||||||||||||||||
Class R2 | ||||||||||||||||||||||||||||||||
12/31/2015(d) | $ | 14.98 | 0.15 | 0.35 | 0.50 | (0.17 | ) | (0.45 | ) | (0.62 | ) | $ | 14.86 | |||||||||||||||||||
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 | ||||||||||||||||||||
6/30/2013 | $ | 12.55 | 0.29 | 1.41 | 1.70 | (0.31 | ) | – | (0.31 | ) | $ | 13.94 | ||||||||||||||||||||
6/30/2012 | $ | 11.68 | 0.25 | 0.90 | 1.15 | (0.28 | ) | – | (0.28 | ) | $ | 12.55 | ||||||||||||||||||||
6/30/2011 | $ | 9.53 | 0.25 | 2.11 | 2.36 | (0.21 | ) | – | (0.21 | ) | $ | 11.68 |
(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) | Portfolio turnover is not annualized for periods less than one year. | |
(d) | Six months ended December 31, 2015 (unaudited). |
(e) | Annualized. | |
(f) | Less than 0.5%. |
See Notes to Financial Statements. | |
28 | 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 | Reimbursements | Reimbursements | Rate(c) | ||||||||||||||||||
3.41% | $ | 376,425 | 1.32 | %(e) | 1.00 | %(e) | 1.96 | %(e) | 2.29 | %(e) | 6 | % | ||||||||||||
(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 | % | ||||||||||||
14.04% | $ | 463,198 | 1.37 | % | 1.00 | % | 1.99 | % | 2.36 | % | 10 | % | ||||||||||||
10.42% | $ | 384,087 | 1.41 | % | 1.00 | % | 2.08 | % | 2.48 | % | 2 | % | ||||||||||||
24.85% | $ | 271,269 | 1.43 | % | 1.00 | % | 2.01 | % | 2.44 | % | 0 | %(f) | ||||||||||||
3.06% | $ | 89,666 | 2.07 | %(e) | 1.75 | %(e) | 1.21 | %(e) | 1.53 | %(e) | 6 | % | ||||||||||||
(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 | % | ||||||||||||
13.14% | $ | 79,194 | 2.12 | % | 1.75 | % | 1.27 | % | 1.64 | % | 10 | % | ||||||||||||
9.55% | $ | 38,099 | 2.16 | % | 1.75 | % | 1.31 | % | 1.72 | % | 2 | % | ||||||||||||
23.94% | $ | 25,514 | 2.17 | % | 1.75 | % | 1.26 | % | 1.69 | % | 0 | %(f) | ||||||||||||
3.60% | $ | 1,493,672 | 1.07 | %(e) | 0.75 | %(e) | 2.21 | %(e) | 2.53 | %(e) | 6 | % | ||||||||||||
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 | % | ||||||||||||
14.31% | $ | 1,924,719 | 1.12 | % | 0.75 | % | 2.24 | % | 2.61 | % | 10 | % | ||||||||||||
10.65% | $ | 1,603,604 | 1.16 | % | 0.75 | % | 2.30 | % | 2.71 | % | 2 | % | ||||||||||||
25.16% | $ | 672,065 | 1.18 | % | 0.75 | % | 2.26 | % | 2.69 | % | 0 | %(f) | ||||||||||||
3.22% | $ | 4,626 | 1.53 | %(e) | 1.50 | %(e) | 1.75 | %(e) | 1.79 | %(e) | 6 | % | ||||||||||||
(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 | % | ||||||||||||
13.35% | $ | 3,965 | 1.86 | % | 1.50 | % | 1.67 | % | 2.03 | % | 10 | % | ||||||||||||
9.88% | $ | 171 | 1.91 | % | 1.50 | % | 1.50 | % | 1.92 | % | 2 | % | ||||||||||||
23.82% | $ | 58 | 1.93 | % | 1.50 | % | 1.55 | % | 1.98 | % | 0 | %(f) | ||||||||||||
3.32% | $ | 3,389 | 1.30 | %(e) | 1.25 | %(e) | 1.97 | %(e) | 2.03 | %(e) | 6 | % | ||||||||||||
(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 | % | ||||||||||||
13.73% | $ | 827 | 1.62 | % | 1.25 | % | 1.82 | % | 2.19 | % | 10 | % | ||||||||||||
10.05% | $ | 155 | 1.66 | % | 1.25 | % | 1.74 | % | 2.15 | % | 2 | % | ||||||||||||
24.88% | $ | 84 | 1.68 | % | 1.25 | % | 1.82 | % | 2.26 | % | 0 | %(f) |
Semi-Annual Report | December 31, 2015 | 29 |
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 or Period End | Period | Income/(Loss)(a) | on Investments | Operations | Income | Capital Gains | Distributions | End of Period | ||||||||||||||||||||||||
Cullen Small Cap Value Fund | ||||||||||||||||||||||||||||||||
Retail | ||||||||||||||||||||||||||||||||
12/31/2015(d) | $ | 14.15 | (0.01 | ) | (1.99 | ) | (2.00 | ) | – | (0.32 | ) | (0.32 | ) | $ | 11.83 | |||||||||||||||||
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 | |||||||||||||||||||
6/30/2013 | $ | 12.55 | (0.02 | ) | 2.44 | 2.42 | (0.03 | ) | (0.25 | ) | (0.28 | ) | $ | 14.69 | ||||||||||||||||||
6/30/2012 | $ | 13.85 | 0.04 | (1.01 | ) | (0.97 | ) | (0.05 | ) | (0.28 | ) | (0.33 | ) | $ | 12.55 | |||||||||||||||||
6/30/2011 | $ | 10.63 | 0.05 | 3.30 | 3.35 | (0.06 | ) | (0.07 | ) | (0.13 | ) | $ | 13.85 | |||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
12/31/2015(d) | $ | 13.62 | (0.05 | ) | (1.92 | ) | (1.97 | ) | – | (0.32 | ) | (0.32 | ) | $ | 11.33 | |||||||||||||||||
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 | |||||||||||||||||||
6/30/2013 | $ | 12.39 | (0.13 | ) | 2.40 | 2.27 | (0.00 | )(f) | (0.25 | ) | (0.25 | ) | $ | 14.41 | ||||||||||||||||||
6/30/2012 | $ | 13.73 | (0.06 | ) | (0.97 | ) | (1.03 | ) | (0.03 | ) | (0.28 | ) | (0.31 | ) | $ | 12.39 | ||||||||||||||||
6/30/2011 | $ | 10.57 | (0.02 | ) | 3.25 | 3.23 | (0.00 | )(f) | (0.07 | ) | (0.07 | ) | $ | 13.73 | ||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||
12/31/2015(d) | $ | 14.32 | 0.01 | (2.02 | ) | (2.01 | ) | – | (0.32 | ) | (0.32 | ) | $ | 11.99 | ||||||||||||||||||
6/30/2015 | $ | 17.54 | (0.00 | )(f) | (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 | |||||||||||||||||||
6/30/2013 | $ | 12.63 | 0.01 | 2.44 | 2.45 | (0.03 | ) | (0.25 | ) | (0.28 | ) | $ | 14.80 | |||||||||||||||||||
6/30/2012 | $ | 13.88 | 0.07 | (0.98 | ) | (0.91 | ) | (0.06 | ) | (0.28 | ) | (0.34 | ) | $ | 12.63 | |||||||||||||||||
6/30/2011 | $ | 10.64 | 0.10 | 3.29 | 3.39 | (0.08 | ) | (0.07 | ) | (0.15 | ) | $ | 13.88 | |||||||||||||||||||
Cullen Value Fund | ||||||||||||||||||||||||||||||||
Retail | ||||||||||||||||||||||||||||||||
12/31/2015(d) | $ | 13.82 | 0.05 | (0.50 | ) | (0.45 | ) | (0.05 | ) | (0.21 | ) | (0.26 | ) | $ | 13.11 | |||||||||||||||||
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 | |||||||||||||||||||
6/30/2013(g) | $ | 10.00 | 0.10 | 1.25 | 1.35 | (0.09 | ) | – | (0.09 | ) | $ | 11.26 | ||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
12/31/2015(d) | $ | 13.79 | 0.00 | (f) | (0.50 | ) | (0.50 | ) | (0.00 | )(f) | (0.21 | ) | (0.21 | ) | $ | 13.08 | ||||||||||||||||
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 | |||||||||||||||||||
6/30/2013(g) | $ | 10.00 | 0.04 | 1.25 | 1.29 | (0.04 | ) | – | (0.04 | ) | $ | 11.25 | ||||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||
12/31/2015(d) | $ | 13.80 | 0.07 | (0.50 | ) | (0.43 | ) | (0.07 | ) | (0.21 | ) | (0.28 | ) | $ | 13.09 | |||||||||||||||||
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 | |||||||||||||||||||
6/30/2013(g) | $ | 10.00 | 0.13 | 1.25 | 1.38 | (0.12 | ) | – | (0.12 | ) | $ | 11.26 |
(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) | Portfolio turnover is not annualized for periods less than one year. | |
(d) | Six months ended December 31, 2015 (unaudited). |
(e) | Annualized. | |
(f) | Less than $0.01. |
(g) | Commencement of operations was September 1, 2012. |
See Notes to Financial Statements. | |
30 | 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 | Reimbursements | Reimbursements | Rate(c) | ||||||||||||||||||
(14.19%) | $ | 884 | 5.49 | %(e) | 1.25 | %(e) | (4.36 | %)(e) | (0.12 | %)(e) | 25 | % | ||||||||||||
(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 | % | ||||||||||||
19.59% | $ | 2,601 | 4.52 | % | 1.25 | % | (3.45 | %) | (0.18 | %) | 85 | % | ||||||||||||
(6.92%) | $ | 2,195 | 5.84 | % | 1.25 | % | (4.24 | %) | 0.35 | % | 25 | % | ||||||||||||
31.54% | $ | 1,546 | 8.98 | % | 1.25 | % | (7.36 | %) | 0.37 | % | 16 | % | ||||||||||||
(14.52%) | $ | 96 | 6.27 | %(e) | 2.00 | %(e) | (5.13 | %)(e) | (0.85 | %)(e) | 25 | % | ||||||||||||
(6.49%) | $ | 87 | 5.24 | % | 2.00 | % | (4.25 | %) | (1.00 | %) | 37 | % | ||||||||||||
18.92% | $ | 117 | 4.29 | % | 2.00 | % | (3.46 | %) | (1.16 | %) | 27 | % | ||||||||||||
18.64% | $ | 125 | 5.36 | % | 2.00 | % | (4.31 | %) | (0.95 | %) | 85 | % | ||||||||||||
(7.46%) | $ | 167 | 6.59 | % | 2.00 | % | (5.11 | %) | (0.51 | %) | 25 | % | ||||||||||||
30.56% | $ | 228 | 8.82 | % | 2.00 | % | (6.95 | %) | (0.13 | %) | 16 | % | ||||||||||||
(14.09%) | $ | 4,774 | 5.24 | %(e) | 1.00 | %(e) | (4.11 | %)(e) | 0.13 | %(e) | 25 | % | ||||||||||||
(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 | % | ||||||||||||
19.79% | $ | 5,817 | 4.23 | % | 1.00 | % | (3.12 | %) | 0.11 | % | 85 | % | ||||||||||||
(6.48%) | $ | 5,425 | 5.59 | % | 1.00 | % | (4.05 | %) | 0.54 | % | 25 | % | ||||||||||||
31.86% | $ | 5,331 | 8.26 | % | 1.00 | % | (6.47 | %) | 0.79 | % | 16 | % | ||||||||||||
(3.21%) | $ | 1,113 | 2.15 | %(e) | 1.00 | %(e) | (0.34 | %)(e) | 0.81 | %(e) | 0 | % | ||||||||||||
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 | % | ||||||||||||
13.58% | $ | 177 | 2.78 | %(e) | 1.00 | %(e) | (0.65 | %)(e) | 1.13 | %(e) | 16 | % | ||||||||||||
(3.58%) | $ | 342 | 2.90 | %(e) | 1.75 | %(e) | (1.09 | %)(e) | 0.06 | %(e) | 0 | % | ||||||||||||
(0.12%) | $ | 322 | 2.86 | % | 1.75 | % | (0.77 | %) | 0.34 | % | 11 | % | ||||||||||||
25.31% | $ | 267 | 2.86 | % | 1.75 | % | (0.75 | %) | 0.35 | % | 8 | % | ||||||||||||
12.88% | $ | 262 | 3.48 | %(e) | 1.75 | %(e) | (1.33 | %)(e) | 0.41 | %(e) | 16 | % | ||||||||||||
(3.07%) | $ | 27,762 | 1.90 | %(e) | 0.75 | %(e) | (0.08 | %)(e) | 1.07 | %(e) | 0 | % | ||||||||||||
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 | % | ||||||||||||
13.89% | $ | 21,797 | 2.36 | %(e) | 0.75 | %(e) | (0.08 | %)(e) | 1.53 | %(e) | 16 | % |
Semi-Annual Report | December 31, 2015 | 31 |
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 or Period End | Period | Income/(Loss)(a) | on Investments | Operations | Income | Capital Gains | Distributions | End of Period | ||||||||||||||||||||||||
Cullen Emerging Markets High Dividend Fund | ||||||||||||||||||||||||||||||||
Retail | ||||||||||||||||||||||||||||||||
12/31/2015(d) | $ | 10.87 | 0.14 | (1.71 | ) | (1.57 | ) | (0.31 | ) | – | (0.31 | ) | $ | 8.99 | ||||||||||||||||||
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 | ||||||||||||||||||||
6/30/2013(f) | $ | 10.00 | 0.23 | 0.43 | 0.66 | (0.11 | ) | (0.00 | )(g) | (0.11 | ) | $ | 10.55 | |||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
12/31/2015(d) | $ | 10.80 | 0.09 | (1.69 | ) | (1.60 | ) | (0.27 | ) | – | (0.27 | ) | $ | 8.93 | ||||||||||||||||||
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 | ||||||||||||||||||||
6/30/2013(f) | $ | 10.00 | 0.16 | 0.43 | 0.59 | (0.07 | ) | (0.00 | )(g) | (0.07 | ) | $ | 10.52 | |||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||
12/31/2015(d) | $ | 10.91 | 0.13 | (1.68 | ) | (1.55 | ) | (0.32 | ) | – | (0.32 | ) | $ | 9.04 | ||||||||||||||||||
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 | ||||||||||||||||||||
6/30/2013(f) | $ | 10.00 | 0.20 | 0.48 | 0.68 | (0.11 | ) | (0.00 | )(g) | (0.11 | ) | $ | 10.57 | |||||||||||||||||||
Cullen Enhanced Equity Income Fund | ||||||||||||||||||||||||||||||||
Retail | ||||||||||||||||||||||||||||||||
12/31/2015(h) | $ | 10.00 | 0.01 | (0.04 | ) | (0.03 | ) | – | – | – | $ | 9.97 | ||||||||||||||||||||
Class C | ||||||||||||||||||||||||||||||||
12/31/2015(h) | $ | 10.00 | 0.00 | (g) | (0.03 | ) | (0.03 | ) | – | – | – | $ | 9.97 | |||||||||||||||||||
Class I | ||||||||||||||||||||||||||||||||
12/31/2015(h) | $ | 10.00 | 0.01 | (0.04 | ) | (0.03 | ) | – | – | – | $ | 9.97 |
(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) | Portfolio turnover is not annualized for periods less than one year. |
(d) | Six months ended December 31, 2015 (unaudited). |
(e) | Annualized. |
(f) | Commencement of operations was September 1, 2012. | |
(g) | Less than $0.01. |
(h) | Commencement of operations was December 16, 2015. |
See Notes to Financial Statements. | |
32 | 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 | Reimbursements | Reimbursements | Rate(c) | ||||||||||||||||||
(14.40%) | $ | 11,176 | 1.58 | %(e) | 1.25 | %(e) | 2.46 | %(e) | 2.79 | %(e) | 46 | % | ||||||||||||
(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 | % | ||||||||||||
6.61% | $ | 5,288 | 5.12 | %(e) | 1.25 | %(e) | (1.35 | %)(e) | 2.52 | %(e) | 37 | % | ||||||||||||
(14.75%) | $ | 3,269 | 2.34 | %(e) | 2.00 | %(e) | 1.51 | %(e) | 1.85 | %(e) | 46 | % | ||||||||||||
(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 | % | ||||||||||||
5.93% | $ | 3,211 | 6.15 | %(e) | 2.00 | %(e) | (2.37 | %)(e) | 1.78 | %(e) | 37 | % | ||||||||||||
(14.15%) | $ | 148,318 | 1.34 | %(e) | 1.00 | %(e) | 2.30 | %(e) | 2.64 | %(e) | 46 | % | ||||||||||||
(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 | % | ||||||||||||
6.83% | $ | 8,651 | 6.80 | %(e) | 1.00 | %(e) | (3.55 | %)(e) | 2.25 | %(e) | 37 | % | ||||||||||||
(0.30%) | $ | 498 | 7.32 | %(e) | 1.00 | %(e) | (4.44 | %)(e) | 1.88 | %(e) | 0 | % | ||||||||||||
(0.30%) | $ | 498 | 8.07 | %(e) | 1.75 | %(e) | (5.19 | %)(e) | 1.13 | %(e) | 0 | % | ||||||||||||
(0.30%) | $ | 3,988 | 7.07 | %(e) | 0.75 | %(e) | (4.19 | %)(e) | 2.13 | %(e) | 0 | % |
Semi-Annual Report | December 31, 2015 | 33 |
Cullen Funds Trust | Notes to Financial Statements |
December 31, 2015 (Unaudited) |
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”).
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 CCM 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. |
c) | 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. Certain Funds will use a fair 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 (c) below. |
d) | The Trust follows the authoritative guidance for fair value measurements. The guidance establishes a framework for measuring fair value and a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. The guidance establishes three tiers of inputs that may be used to measure fair value. The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. |
34 | www.cullenfunds.com |
Cullen Funds Trust | Notes to Financial Statements |
December 31, 2015 (Unaudited) |
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 beginning 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. During the six months ended December 31, 2015, Great Wall Motor Co. and OPAP securities were transferred from Level 2 to Level 1 after the respective securities resumed trading following trading halts impacting them on June 30, 2015. There were no transfers into Level 3 assets and liabilities, based on levels assigned to securities on December 31, 2015. 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. futures contracts and 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 December 31, 2015 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 | Quoted Prices | Observable Inputs | Unobservable Inputs | Total | ||||||||||||
Cullen International High Dividend Fund | ||||||||||||||||
Common Stocks(1) | $ | 240,661,250 | $ | – | $ | – | $ | 240,661,250 | ||||||||
Short Term Investments | 5,538,898 | – | – | 5,538,898 | ||||||||||||
Total | $ | 246,200,148 | $ | – | $ | – | $ | 246,200,148 |
Level 1 - Unadjusted | Level 2 - Other Significant | Level 3 - Significant | ||||||||||||||
Investments in Securities at Value | Quoted Prices | Observable Inputs | Unobservable Inputs | Total | ||||||||||||
Cullen High Dividend Equity Fund | ||||||||||||||||
Common Stocks(1) | $ | 1,908,917,881 | $ | – | $ | – | $ | 1,908,917,881 | ||||||||
Short Term Investments | 55,812,882 | – | – | 55,812,882 | ||||||||||||
Total | $ | 1,964,730,763 | $ | – | $ | – | $ | 1,964,730,763 |
Level 1 - Unadjusted | Level 2 - Other Significant | Level 3 - Significant | ||||||||||||||
Investments in Securities at Value | Quoted Prices | Observable Inputs | Unobservable Inputs | Total | ||||||||||||
Cullen Small Cap Value Fund | ||||||||||||||||
Common Stocks(1) | $ | 5,389,626 | $ | – | $ | – | $ | 5,389,626 | ||||||||
Short Term Investments | 371,852 | – | – | 371,852 | ||||||||||||
Total | $ | 5,761,478 | $ | – | $ | – | $ | 5,761,478 |
Level 1 - Unadjusted | Level 2 - Other Significant | Level 3 - Significant | ||||||||||||||
Investments in Securities at Value | Quoted Prices | Observable Inputs | Unobservable Inputs | Total | ||||||||||||
Cullen Value Fund | ||||||||||||||||
Common Stocks(1) | $ | 25,149,884 | $ | – | $ | – | $ | 25,149,884 | ||||||||
Short Term Investments | 4,069,557 | – | – | 4,069,557 | ||||||||||||
Total | $ | 29,219,441 | $ | – | $ | – | $ | 29,219,441 |
Semi-Annual Report | December 31, 2015 | 35 |
Cullen Funds Trust | Notes to Financial Statements |
December 31, 2015 (Unaudited) |
Level 1 - Unadjusted | Level 2 - Other Significant | Level 3 - Significant | ||||||||||||||
Investments in Securities at Value | Quoted Prices | Observable Inputs | Unobservable Inputs | Total | ||||||||||||
Cullen Emerging Markets High Dividend Fund | ||||||||||||||||
Common Stocks(1) | $ | 144,775,513 | $ | – | $ | – | $ | 144,775,513 | ||||||||
Participatory Notes | – | 12,044,883 | – | 12,044,883 | ||||||||||||
Short Term Investments | 4,912,319 | – | – | 4,912,319 | ||||||||||||
Total | $ | 149,687,832 | $ | 12,044,883 | $ | – | $ | 161,732,715 |
Level 1 - Unadjusted | Level 2 - Other Significant | Level 3 - Significant | ||||||||||||||
Investments in Securities at Value | Quoted Prices | Observable Inputs | Unobservable Inputs | Total | ||||||||||||
Cullen Enhanced Equity Income Fund | ||||||||||||||||
Common Stocks(1) | $ | 4,762,851 | $ | – | $ | – | $ | 4,762,851 | ||||||||
Short Term Investments | 234,260 | – | – | 234,260 | ||||||||||||
Total | $ | 4,997,111 | $ | – | $ | – | $ | 4,997,111 | ||||||||
Other Financial Instruments | ||||||||||||||||
Liabilities | ||||||||||||||||
Written Options | $ | (16,890 | ) | – | – | $ | (16,890 | ) | ||||||||
Total | $ | (16,890 | ) | – | – | $ | (16,890 | ) |
(1) | For detailed descriptions of country, sector and/or industry, see the accompanying Schedule of Investments. |
Transfers into and out of Levels 1 and 2 as of December 31, 2015 were as follows:
Level 1 | Level 2 | |||||||||||||||
Cullen Emerging Markets High Dividend Fund | Transfer In | Transfers (Out) | Transfer In | Transfers (Out) | ||||||||||||
Common Stocks | $ | 2,826,877 | $ | (2,826,877 | ) | |||||||||||
Total | $ | 2,826,877 | $ | – | $ | – | $ | (2,826,877 | ) |
e) | 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. |
f) | 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 cost to the Funds. Therefore, no federal income or excise tax provision is recorded. |
As of and during the six months ended December 31, 2015, 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.
g) | 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. |
h) | 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. |
i) | 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. |
j) | 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 |
36 | www.cullenfunds.com |
Cullen Funds Trust | Notes to Financial Statements |
December 31, 2015 (Unaudited) |
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.
k) | Foreign Currency Transactions – The Funds do not 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 are included with the net realized and unrealized gain or loss from investments. 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. Net unrealized foreign exchange gains and losses arise from changes in the value of assets and liabilities denominated in currencies other than the U.S. dollar and other than investments in securities at period end, resulting from changes in the exchange rate. |
l) | 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 Cullen Enhanced Equity Income Fund had the following transactions in written options during the six months ended December 31, 2015:
Cullen Enhanced Equity Income Fund | ||||||||
Written Call Options | ||||||||
Contracts | Premiums | |||||||
Outstanding, December 16, 2015 (Commencement of Operations) | – | $ | – | |||||
Positions opened | (293 | ) | (15,904 | ) | ||||
Closed | – | – | ||||||
Exercised | – | – | ||||||
Expired | – | – | ||||||
Outstanding, December 31, 2015 | (293 | ) | $ | (15,904 | ) | |||
Market Value, December 31, 2015 | $ | (16,890 | ) |
The effect of derivative instruments on the Statements of Assets and Liabilities as of December 31, 2015:
Liability Derivatives | ||||||
Risk Exposure | Statements of Assets and Liabilities Location | Fair Value | ||||
Cullen Enhanced Equity Income Fund | ||||||
Equity Contracts (Written Options) | Written options, at value | (16,890 | ) | |||
Total | $ | (16,890 | ) |
The effect of derivatives instruments on the Statements of Operations for the year ended December 31, 2015:
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 change in unrealized appreciation/(depreciation) on written options | – | (986 | ) | ||||||
Total | $ | – | $ | (986 | ) |
Semi-Annual Report | December 31, 2015 | 37 |
Cullen Funds Trust | Notes to Financial Statements |
December 31, 2015 (Unaudited) |
The Cullen Enhanced Equity Income Fund had the following monthly average written call option contracts volume during the six months ended December 31, 2015:
Fund | Monthly Average Written Option Contract Volume |
Cullen Enhanced Equity Income Fund | 17 |
3. CAPITAL SHARE TRANSACTIONS |
Share transactions were as follows: |
Six Months Ended | ||||||||
December 31, 2015 | Year Ended | |||||||
(Unaudited) | June 30, 2015 | |||||||
Cullen International High Dividend Fund | ||||||||
Retail | ||||||||
Shares sold | 523,868 | 2,838,177 | ||||||
Dividends reinvested | 28,414 | 143,603 | ||||||
Shares redeemed | (1,550,645 | ) | (3,108,634 | ) | ||||
Net decrease in shares outstanding | (998,363 | ) | (126,854 | ) | ||||
Class C | ||||||||
Shares sold | 15,984 | 72,520 | ||||||
Dividends reinvested | 859 | 6,203 | ||||||
Shares redeemed | (42,968 | ) | (23,081 | ) | ||||
Net increase/(decrease) in shares outstanding | (26,125 | ) | 55,642 | |||||
Class I | ||||||||
Shares sold | 4,553,689 | 19,959,443 | ||||||
Dividends reinvested | 91,336 | 319,977 | ||||||
Shares redeemed | (7,505,394 | ) | (30,311,561 | ) | ||||
Net decrease in shares outstanding | (2,860,369 | ) | (10,032,141 | ) | ||||
Class R1 | ||||||||
Shares sold | 58 | 222 | ||||||
Dividends reinvested | 25 | 164 | ||||||
Shares redeemed | (3,294 | ) | (167 | ) | ||||
Net increase/(decrease) in shares outstanding | (3,211 | ) | 219 | |||||
Class R2 | ||||||||
Shares sold | 931 | 9,132 | ||||||
Dividends reinvested | 72 | 335 | ||||||
Shares redeemed | (72 | ) | (501 | ) | ||||
Net increase in shares outstanding | 931 | 8,966 |
38 | www.cullenfunds.com |
Cullen Funds Trust | Notes to Financial Statements |
December 31, 2015 (Unaudited) |
Six Months Ended | ||||||||
December 31, 2015 | Year Ended | |||||||
(Unaudited) | June 30, 2015 | |||||||
Cullen High Dividend Equity Fund | ||||||||
Retail | ||||||||
Shares sold | 1,658,477 | 7,473,537 | ||||||
Dividends reinvested | 804,474 | 1,325,913 | ||||||
Shares redeemed | (4,371,896 | ) | (13,822,127 | ) | ||||
Net decrease in shares outstanding | (1,908,945 | ) | (5,022,677 | ) | ||||
Class C | ||||||||
Shares sold | 138,752 | 850,808 | ||||||
Dividends reinvested | 177,830 | 245,043 | ||||||
Shares redeemed | (405,184 | ) | (746,660 | ) | ||||
Net increase/(decrease) in shares outstanding | (88,602 | ) | 349,191 | |||||
Class I | ||||||||
Shares sold | 4,719,812 | 22,587,650 | ||||||
Dividends reinvested | 2,381,115 | 3,881,326 | ||||||
Shares redeemed | (15,313,880 | ) | (36,595,074 | ) | ||||
Net decrease in shares outstanding | (8,212,953 | ) | (10,126,098 | ) | ||||
Class R1 | ||||||||
Shares sold | 3,626 | 8,607 | ||||||
Dividends reinvested | 12,300 | 17,246 | ||||||
Shares redeemed | (8,341 | ) | (30,651 | ) | ||||
Net increase/(decrease) in shares outstanding | 7,585 | (4,798 | ) | |||||
Class R2 | ||||||||
Shares sold | 9,536 | 68,115 | ||||||
Dividends reinvested | 9,131 | 12,922 | ||||||
Shares redeemed | (15,259 | ) | (59,602 | ) | ||||
Net increase in shares outstanding | 3,408 | 21,435 | ||||||
Cullen Small Cap Value Fund | ||||||||
Retail | ||||||||
Shares sold | 1,161 | 34,683 | ||||||
Dividends reinvested | 1,917 | 24,161 | ||||||
Shares redeemed | (5,681 | ) | (124,801 | ) | ||||
Net decrease in shares outstanding | (2,603 | ) | (65,957 | ) | ||||
Class C | ||||||||
Shares sold | 1,947 | 677 | ||||||
Dividends reinvested | 227 | 1,223 | ||||||
Shares redeemed | (118 | ) | (2,414 | ) | ||||
Net increase/(decrease) in shares outstanding | 2,056 | (514 | ) | |||||
Class I | ||||||||
Shares sold | 15,493 | 137,592 | ||||||
Dividends reinvested | 10,097 | 51,910 | ||||||
Shares redeemed | (20,000 | ) | (203,156 | ) | ||||
Net increase/(decrease) in shares outstanding | 5,590 | (13,654 | ) |
Semi-Annual Report | December 31, 2015 | 39 |
Cullen Funds Trust | Notes to Financial Statements |
December 31, 2015 (Unaudited) |
Six Months Ended | ||||||||
December 31, 2015 | Year Ended | |||||||
(Unaudited) | June 30, 2015 | |||||||
Cullen Value Fund | ||||||||
Retail | ||||||||
Shares sold | 18,021 | 48,231 | ||||||
Dividends reinvested | 1,699 | 910 | ||||||
Shares redeemed | (903 | ) | (58,767 | ) | ||||
Net increase/(decrease) in shares outstanding | 18,817 | (9,625 | ) | |||||
Class C | ||||||||
Shares sold | 2,687 | 4,097 | ||||||
Dividends reinvested | 422 | 44 | ||||||
Shares redeemed | (333 | ) | (22 | ) | ||||
Net increase in shares outstanding | 2,776 | 4,119 | ||||||
Class I | ||||||||
Shares sold | 82,628 | 156,886 | ||||||
Dividends reinvested | 44,422 | 27,632 | ||||||
Shares redeemed | (56,217 | ) | (107,611 | ) | ||||
Net increase in shares outstanding | 70,833 | 76,907 | ||||||
Cullen Emerging Markets High Dividend Fund | ||||||||
Retail | ||||||||
Shares sold | 768,153 | 1,006,514 | ||||||
Dividends reinvested | 39,378 | 64,337 | ||||||
Shares redeemed | (1,843,824 | ) | (923,558 | ) | ||||
Net increase/(decrease) in shares outstanding | (1,036,293 | ) | 147,293 | |||||
Class C | ||||||||
Shares sold | 8,399 | 75,186 | ||||||
Dividends reinvested | 11,396 | 9,849 | ||||||
Shares redeemed | (88,779 | ) | (30,244 | ) | ||||
Net increase/(decrease) in shares outstanding | (68,984 | ) | 54,791 | |||||
Class I | ||||||||
Shares sold | 8,354,637 | 11,461,130 | ||||||
Dividends reinvested | 495,734 | 323,498 | ||||||
Shares redeemed | (6,221,616 | ) | (3,058,310 | ) | ||||
Net increase in shares outstanding | 2,628,755 | 8,726,318 |
40 | www.cullenfunds.com |
Cullen Funds Trust | Notes to Financial Statements |
December 31, 2015 (Unaudited) |
For the Period | ||||
December 16, 2015 | ||||
to | ||||
December 31, | ||||
2015(a) | ||||
SUMMARY OF CAPITAL SHARE ACTIVITY: | ||||
Cullen Enhanced Equity Income Fund | ||||
Retail: | ||||
Beginning of period | – | |||
Shares sold | 50,000 | |||
Net increase in shares outstanding | 50,000 | |||
Shares outstanding, end of period | 50,000 | |||
Class C: | ||||
Beginning of period | – | |||
Shares sold | 50,000 | |||
Net increase in shares outstanding | 50,000 | |||
Shares outstanding, end of period | 50,000 | |||
Class I: | ||||
Beginning of period | – | |||
Shares sold | 400,000 | |||
Net increase in shares outstanding | 400,000 | |||
Shares outstanding, end of period | 400,000 |
(a) | Commencement of operations was December 16, 2015. |
4. INVESTMENT TRANSACTIONS |
Purchases and sales of investments, excluding short-term investments, for the six months ended December 31, 2015 were as follows:
Proceeds from Sales of | ||||||||
Fund | Purchases of Securities | Securities | ||||||
Cullen International High Dividend Fund | $ | 57,188,016 | $ | 79,723,886 | ||||
Cullen High Dividend Equity Fund | 107,274,256 | 182,366,910 | ||||||
Cullen Small Cap Value Fund | 1,499,219 | 1,879,163 | ||||||
Cullen Value Fund | 2,628,824 | – | ||||||
Cullen Emerging Markets High Dividend Fund | 92,622,973 | 71,241,399 | ||||||
Cullen Enhanced Equity Income Fund | 4,781,074 | – |
5. FEDERAL TAX INFORMATION |
As of June 30, 2015, the components of accumulated earnings (losses) on a tax basis were as follows:
Accumulated | Other Cumulative | |||||||||||||||||||
Undistributed | Capital | Effect of Timing | Unrealized | |||||||||||||||||
Ordinary Income | Gains/(Losses) | Differences | Appreciation | Total | ||||||||||||||||
Cullen International High Dividend Fund | $ | – | $ | (35,988,520 | ) | $ | (23,777 | ) | $ | 35,676,252 | $ | (336,045 | ) | |||||||
Cullen High Dividend Equity Fund | – | 39,334,749 | – | 638,157,126 | 677,491,875 | |||||||||||||||
Cullen Small Cap Value Fund | – | 147,851 | (4,338 | ) | 1,284,320 | 1,427,833 | ||||||||||||||
Cullen Value Fund | – | 468,943 | – | 7,544,128 | 8,013,071 | |||||||||||||||
Cullen Emerging Markets High Dividend Fund | 2,806,655 | (10,029,231 | ) | – | 3,999,222 | (3,223,354 | ) | |||||||||||||
Cullen Enhanced Equity Income Fund | – | – | – | – | – |
Semi-Annual Report | December 31, 2015 | 41 |
Cullen Funds Trust | Notes to Financial Statements |
December 31, 2015 (Unaudited) |
As of December 31, 2015 the costs of investments for federal tax purposes and accumulated net unrealized appreciation/(depreciation) in investments were as follows:
Gross Appreciation | Gross Depreciation | Cost of Investments | ||||||||||||||
(excess of value over | (excess of tax cost | Net Unrealized | for Income Tax | |||||||||||||
tax cost) | over value) | Appreciation/(Depreciation) | Purposes* | |||||||||||||
Cullen International High Dividend Fund | $ | 32,097,467 | $ | (10,381,497 | ) | $ | 21,715,970 | $ | 224,484,178 | |||||||
Cullen High Dividend Equity Fund | 664,293,592 | (23,684,308 | ) | 640,609,284 | 1,324,121,479 | |||||||||||
Cullen Small Cap Value Fund | 1,450,495 | (762,992 | ) | 687,503 | 5,073,975 | |||||||||||
Cullen Value Fund | 6,916,609 | (480,742 | ) | 6,435,867 | 22,783,574 | |||||||||||
Cullen Emerging Markets High Dividend Fund | 7,499,471 | (16,678,986 | ) | (9,179,515 | ) | 170,912,230 | ||||||||||
Cullen Enhanced Equity Income Fund | 38,511 | (56,734 | ) | (18,223 | ) | 5,015,334 |
* | 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. |
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 differing treatment of certain income items, reclassification adjustments were made to increase (decrease) the amounts listed below:
Accumulated Net | Accumulated Net Realized | |||||||||||
Fund | Paid-in Capital | Investment Income/(Loss) | Gain/(Loss) on Investments | |||||||||
Cullen International High Dividend Fund | $ | – | $ | (492,413 | ) | $ | 492,413 | |||||
Cullen High Dividend Equity Fund | – | 1,656,831 | (1,656,831 | ) | ||||||||
Cullen Small Cap Value Fund* | (2,003 | ) | 2,002 | 1 | ||||||||
Cullen Value Fund | – | 14,796 | (14,796 | ) | ||||||||
Cullen Emerging Markets High Dividend Fund | – | 1,307,830 | (1,307,830 | ) | ||||||||
Cullen Enhanced Equity Income Fund | – | – | – |
* | Includes Net Operating Loss (NOL) offset to Paid in Capital (PIC) in the amount of $2,002. |
At June 30, 2015, 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. Pursuant to the Code, such capital loss carry-forwards will expire as follows:
No Expiration | No Expiration | |||||||||||||||||||
Fund | Expiring in 2017 | Expiring in 2018 | Short-Term | Long-Term | Total | |||||||||||||||
Cullen International High Dividend Fund | $ | 1,150,342 | $ | 17,096,391 | $ | 6,292,534 | – | $ | 24,539,267 | |||||||||||
Cullen High Dividend Equity Fund | – | – | – | – | – | |||||||||||||||
Cullen Small Cap Value Fund | – | – | – | – | – | |||||||||||||||
Cullen Value Fund | – | – | – | – | – | |||||||||||||||
Cullen Emerging Markets High Dividend Fund | – | – | 1,790,803 | $ | 184,286 | 1,975,089 | ||||||||||||||
Cullen Enhanced Equity Income Fund | – | – | – | – | – |
Under the recently enacted Regulated Investment Company Modernization Act of 2010, the Funds will be permitted to carry forward capital losses incurred in taxable years beginning after December 22, 2010 for an unlimited period. However, any losses incurred during those future taxable years will be required to be utilized prior to the losses incurred during pre-enactment taxable years. As a result of this ordering rule, pre-enactment capital loss carryforwards may have an increased likelihood to expire unused. Additionally, post-enactment capital losses that are carried forward will retain their character as either short-term or long-term capital losses rather than being considered all short-term as under previous law.
The Cullen High Dividend Equity Fund utilized $25,643,978 of capital losses to offset taxable capital gains realized during the year ended December 31, 2015. The Cullen International High Dividend Fund and Cullen Emerging Markets High Dividend Fund elected to treat post-October capital losses of $834,003 and $578,517, respectively, as having been incurred in the following fiscal year June 30, 2016.
42 | www.cullenfunds.com |
Cullen Funds Trust | Notes to Financial Statements |
December 31, 2015 (Unaudited) |
The tax composition of dividends paid during the year ended June 30, 2015 was as follows:
Long-Term Capital | ||||||||
Fund | Ordinary Income | Gain | ||||||
Cullen International High Dividend Fund | $ | 10,488,815 | $ | – | ||||
Cullen High Dividend Equity Fund | 55,256,607 | 75,512,741 | ||||||
Cullen Small Cap Value Fund | 55,980 | 966,953 | ||||||
Cullen Value Fund | 379,540 | 14,796 | ||||||
Cullen Emerging Markets High Dividend Fund | 4,438,707 | – | ||||||
Cullen Enhanced Equity Income Fund | – | – |
6. INVESTMENT ADVISORY AND OTHER AGREEMENTS
The Trust has an agreement with 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, 2016 (except for the Cullen Enhanced Equity Income Fund, which is through October 31, 2017), 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; and 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; and 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.
Semi-Annual Report | December 31, 2015 | 43 |
Cullen Funds Trust | Notes to Financial Statements |
December 31, 2015 (Unaudited) |
As of June 30, 2015, reimbursed expenses for each Fund subject to potential recovery by year of expiration are as follows:
Expiring June 30, | ||||||||||||
Fund/Class | 2016 | 2017 | 2018 | |||||||||
Cullen International High Dividend Fund | ||||||||||||
Retail | $ | 141,000 | $ | 71,710 | $ | 87,602 | ||||||
Class C | 6,616 | 4,456 | 5,482 | |||||||||
Class I | 425,591 | 436,290 | 491,835 | |||||||||
Class R1 | 214 | 80 | N/A | |||||||||
Class R2 | 189 | 62 | N/A | |||||||||
Total | $ | 573,610 | $ | 512,598 | $ | 584,919 | ||||||
Cullen High Dividend Equity Fund | ||||||||||||
Retail | $ | 1,630,120 | $ | 1,533,595 | $ | 1,487,295 | ||||||
Class C | 229,551 | 265,976 | 299,050 | |||||||||
Class I | 6,581,395 | 6,068,336 | 5,691,686 | |||||||||
Class R1 | 7,506 | 11,658 | 3,391 | |||||||||
Class R2 | 1,576 | 5,911 | 2,454 | |||||||||
Total | $ | 8,450,148 | $ | 7,885,476 | $ | 7,483,876 | ||||||
Cullen Small Cap Value Fund | ||||||||||||
Retail | $ | 87,777 | $ | 60,863 | $ | 54,361 | ||||||
Class C | 6,752 | 2,676 | 3,329 | |||||||||
Class I | 202,679 | 150,336 | 185,855 | |||||||||
Total | $ | 297,208 | $ | 213,875 | $ | 243,545 | ||||||
Cullen Value Fund | ||||||||||||
Retail | $ | 1,742 | $ | 3,366 | $ | 12,397 | ||||||
Class C | 2,891 | 2,832 | 3,414 | |||||||||
Class I | 266,268 | 266,468 | 303,245 | |||||||||
Total | $ | 270,901 | $ | 272,666 | $ | 319,056 | ||||||
Cullen Emerging Markets High Dividend Fund | ||||||||||||
Retail | $ | 53,734 | $ | 110,163 | $ | 91,142 | ||||||
Class C | 49,819 | 26,282 | 15,954 | |||||||||
Class I | 135,954 | 202,707 | 394,872 | |||||||||
Total | $ | 239,507 | $ | 339,152 | $ | 501,968 |
ALPS Fund Services, Inc. serves as the Funds’ administrator and fund accountant. State Street Global Services 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.
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.
44 | www.cullenfunds.com |
Cullen Funds Trust | Notes to Financial Statements |
December 31, 2015 (Unaudited) |
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 December 31, 2015, the Cullen Small Cap Value Fund had two affiliated shareholders who held 30.90% and 7.47% of the Fund’s outstanding shares, the Cullen Value Fund had one affiliated shareholder who held 23.23% of the Fund’s outstanding shares, and the Cullen Enhanced Equity Income Fund had one affiliated shareholder who held 100% of the Fund’s outstanding shares. Investment activities of these shareholders could have a material effect on the Fund.
Semi-Annual Report | December 31, 2015 | 45 |
Cullen Funds Trust | Additional Information |
December 31, 2015 (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.
46 | www.cullenfunds.com |
Cullen Funds Trust | Board Approval of Investment Advisory Agreement |
December 31, 2015 (Unaudited) |
At the November 12, 2015 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 serve as investment adviser to the Cullen Enhanced Equity Income Fund (the “New Fund”) and approved the investment advisory agreement between the Adviser and the Trust with respect to the New Fund (the “Investment Advisory Agreement”), upon the same terms and conditions set forth therein, for an initial two year term. In connection with considering approval of the Investment Advisory Agreement, the Independent Trustees met in executive session with independent counsel, who provided assistance and advice.
In considering the approval of the Investment Advisory Agreement for the New Fund, the Independent Trustees reviewed the following items about the Adviser and the New Fund, including: (i) a copy of the Investment Advisory Agreement with respect to the Adviser’s management of the New Fund; (ii) information describing the nature, quality, and extent of the services the Adviser will provide to the New Fund, and the fee the Adviser will receive from the New Fund; (iii) a memorandum from counsel to the Independent Trustees on the responsibilities of trustees in considering an advisory arrangement under the 1940 Act; and (iv) a report containing data compiled by FUSE Research Network, comparing the advisory fees and expenses of the New 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 considering the approval of the Investment Advisory Agreement, the Independent Trustees focused on and analyzed the factors that the Independent Trustees deemed relevant, including: (a) the nature, quality, and extent of the services to be provided by the Adviser to the New Fund; (b) the Adviser’s personnel and operations; (c) the Adviser’s financial condition; (d) the level and method of computing the New Fund’s advisory fee; (e) potential “fall-out” benefits to the Adviser and its affiliates (i.e., ancillary benefits that may be realized by the Adviser and its affiliates from Adviser’s relationship with the New Fund); (f) the anticipated effect of growth and size on the New Fund’s performance and expenses; and (g) possible conflicts of interest. In particular, the Independent Trustees considered and discussed the following with respect to the New Fund:
The nature, quality and extent of services to be provided to the New Fund by the Adviser. The Independent Trustees, in examining the nature and quality of the services to be provided by the Adviser to the New Fund, recognized the Adviser’s operational capabilities and resources. The Independent Trustees also considered the extensive responsibilities that the Adviser has as investment adviser to the New Fund, including the oversight of the other service providers, oversight of general fund compliance with federal and state laws, and the implementation of Board directives as they relate to the New Fund. The Independent Trustees also considered the high level and quality of services provided by the Adviser to the existing Cullen Funds and the extent to which such level and quality of services would also be provided to the New Fund.
The Independent Trustees determined that the New Fund was likely to benefit from the nature and quality of the services provided by the Adviser and from the Adviser’s ability to render such services in accordance with its operational capabilities and resources.
The fee payable pursuant to the Investment Advisory Agreement. The Independent Trustees considered and discussed the fee payable under the advisory agreement and examined the fee to be paid by the New Fund compared to fees paid to other investment managers by comparable funds. The Independent Trustees took note of the Adviser’s willingness to enter into an expense limitation agreement for the New Fund. The Independent Trustees also considered whether fee break-points were advisable for the New Fund but, given the size and nature of the Fund, did not determine them to be appropriate at this time. After comparing the Adviser’s proposed fee with those of comparable funds and in light of the quality and extent of services to be provided and the costs anticipated to be incurred by the Adviser, the Independent Trustees concluded that the level of the fee paid to the Adviser with respect to the New Fund was fair and reasonable.
Conclusion. It was noted that, based on these considerations and the overall high quality of the personnel, operations, financial condition, and investment advisory capabilities of the Adviser, the Independent Trustees had determined that approval of the Investment Advisory Agreement was in the best interests of the New Fund and recommended that the entire Board approve the Investment Advisory Agreement. The Board’s consideration of the various factors and its conclusions with respect to such factors formed the basis for the Board’s determination to approve the Investment Advisory Agreement for the New Fund, noting no one factor was determinative in the Board’s consideration of the Investment Advisory Agreement. The Board’s decision to approve the Investment Advisory Agreement reflected the exercise of its business judgment to approve such an arrangement.
Semi-Annual Report | December 31, 2015 | 47 |
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Cullen Funds |
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 |
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 |
State Street Bank and Trust Company |
One Lincoln Street |
Boston, MA 02111 |
Must be accompanied or preceded by a prospectus. |
ALPS Distributors, Inc. is the Distributor for Cullen Funds. |
Item 2. | Code of Ethics. |
Not applicable to semi-annual report.
Item 3. | Audit Committee Financial Expert. |
Not applicable to semi-annual report.
Item 4. | Principal Accountant Fees and Services. |
Not applicable to semi-annual report.
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. | Exhibits. |
(a)(1) | Not applicable to semi-annual report. |
(a)(2) | Certifications required by Item 12(a)(2) of Form N-CSR are filed herewith as EX-99.CERT. |
(b) | Certifications required by Item 12(b) are filed herewith as EX-99.906CERT. |
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: | March 8, 2016 |
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: | March 8, 2016 |
By: | /s/ Jeffrey T. Battaglia | |
Jeffrey T. Battaglia | ||
Treasurer | ||
Date: | March 8, 2016 |