The SCCM International High Dividend Composite was -1.8% (net) in the 2nd Quarter versus -1.0% for MSCI EAFE.

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1 S C H A F E R C U L L E N C A P I T A L M A N A G E M E N T International High Dividend Equity Strategy Q Commentary Market and Economic Review Global asset markets mostly ended the quarter lower, following remarks by Ben Bernanke in which he hinted that the era of ultra-accommodative monetary policy may be coming to a close. In reaction, bond yields, in predictable fashion, rose from their generational lows, delivering meaningful losses for fixed income investments which underperformed equities. International equity markets lagged their US peers with MSCI EAFE and MSCI Emerging Markets returning -1.0% and -8.1%, respectively, versus 2.9% for the S&P 500. Europe s credit markets continued to heal, lifting equities in both large core markets such as Germany and France and distressed periphery markets such as Ireland, Italy and Spain. Japanese equities experienced high levels of volatility but ended higher as the direction and extent of government policies, which hitherto have been supportive of asset prices, became somewhat more uncertain. A temporary freeze-up in credit conditions in China further raised questions in regard to the sustainability of the country s current growth model, impacting both China reliant, commodity intensive emerging and developed markets such as Brazil, Chile, Australia and Canada, and markets in China and Hong Kong, itself. In the quarter, we underperformed our benchmark which was down 1.0%, an exception to our track record of having outperformed during 83% of prior down quarters. On a sector level, performance was mixed among defensive sectors, with Telecommunication Services and Healthcare, which we are overweight, outperforming, and Consumer Staples, which we are also overweight, underperforming. On a country level, markets in Japan and Europe were strong whereas in the Emerging Markets they were weak, clearly creating a headwind for our more diversified geographic exposure which we continue to find attractive over the long-term. In the quarter, value outperformed growth and large caps outperformed small caps. Portfolio Performance The SCCM International High Dividend Composite was -1.8% (net) in the 2nd Quarter versus -1.0% for MSCI EAFE. Since Q2 YTD 1 Year 3 Year 5 Year Incept* SCCM Intl High Div (net) MSCI EAFE S&P *August 31, Performance for periods greater than 1 year is annualized. 645 Fifth Avenue New York, NY Tel Fax

2 Sector Attribution The largest contributor to relative performance was our overweight allocation to high quality companies in non-cyclical sectors such as Telecommunication Services and Healthcare, and our underweight exposure to low quality companies in cyclical sectors such as Financials and Basic Materials. Outperformance here was driven by leading blue chip multinational companies which are posting strong increases in dividend payments, including Vodafone, Bayer and Roche. Stock selection aided performance in Industrials and Healthcare where our world leading companies, with identifiable catalysts to drive earnings and dividend growth, outperformed peers. The largest detractor from relative performance was our stock selection in Basic Materials and Energy. While some of our holdings in the commodities space are facing short-term headwinds, we continue to have confidence in them, given their attractive valuations and continued ability to pay sustainable dividends. Our overweight allocation to Consumer Staples and Energy and our underweight allocation to Consumer Discretionary hurt performance. lllllllllllllllllllllllllllllllllllllllll International High Dividend Value Equity ORD vs. MSCI EAFE GICS Sector Allocation Effect Selection + Interaction Total Effect 12/31/2012-3/29/2013 Materials Health Care Utilities Information Technology Telecommunication Services Consumer Staples [Cash] Consumer Discretionary Industrials Financials Energy Source: FactSet FactSet Research Systems Page 2 of 9

3 Country Attribution The largest contributor to relative performance was our superior stock selection in the United Kingdom, Singapore, Switzerland, Germany and France, where our high quality, dividend paying companies outperformed their respective indices. Our underweight allocation to Australia and Sweden and our overweight allocation to South Africa and Indonesia, aided performance. Currency was a tailwind in the quarter as the Japanese Yen and Australian Dollar, which we are underweight, were down significantly. The largest detractor from relative performance was our underweight allocation to Japan and our overweight allocation to Mexico, Russia, Singapore and Canada. We remain comfortable with these allocation decisions based on valuations and the long-term prospects of our portfolio companies. In this regard, we have maintained our long-standing underweight to Japan, where companies continue to offer both low dividend yields and poor visibility on sustainable dividend growth. Stock selection hurt us in Israel and Norway, where we owned commodity based companies which underperformed their respective indices. International High Dividend Value Equity ORD vs. MSCI EAFE Country Allocation Effect Selection + Interaction Total Effect 12/31/2012-3/29/2013 United Kingdom Germany Switzerland Indonesia Hong Kong Netherlands Israel France Russia Brazil Taiwan Norway Singapore [Cash] Canada Mexico China Bermuda South Africa Australia FactSet Research Systems Source: FactSet Page 3 of 9

4 Portfolio Strategy and Changes Purchases Imperial Tobacco United Kingdom Consumer Staples Imperial Tobacco owns a collection of leading global and national value cigarette brands including Gauloises Blondes, West, JPS, L&B and Marquies, with a strong presence in the developed markets of Europe and the emerging markets of the Middle East and Africa, with a smaller presence in Asia, Australia and North America. The company s product portfolio also includes the ultra-high end Davidoff brand, emerging market brands such as Maxim, Fine, Boss and Prima, which offer good opportunities for investment and cross-selling across its wide geographic footprint and a worldleading position in roll it yourself tobacco products with brand such as Golden Virginia and Drum and in cigars with brand such as Cohiba and Montecristo, both of which are witnessing secular volume growth due to changing customer preferences. After spending much of the last decade on acquisition led growth, the company looks to focus on organic growth and in this regard has initiated outside hires for key management positions and is expanding its investment in research, marketing and distribution. While cigarette volumes are somewhat weak in developed Europe, Imperial should be relatively well insulated given its much higher exposure to value brands. Further, volume declines in the past have been more than offset by price increases, a trend which we believe is likely to continue, given the highly addictive nature of tobacco products and oligopolistic nature of the tobacco industry whereby the top four players control 80% of the world market outside the US and China. In light of the company s visible, highly cash generative, defensible businesses, management has provided annualized medium-term guidance for 2-4% revenue growth, 3-6% earnings growth and +10% dividend growth. The robust growth in the dividend comes as Imperial responsibly moves its current 55% payout ratio to the industry average of 65%. If within three years, management is unable to deliver on its organic growth strategy, we believe that shareholder activism could lead to a sale of the company at a 40% higher price than currently, based on past multiples for take-outs in the industry. Imperial Tobacco trades at 10.3 times forward earnings and offers a 5.5% dividend yield. Kirin Holdings Japan Consumer Staples Kirin Holdings is a leading global multinational beverage and pharmaceutical company. The company is the second largest brewer in Japan as well as a leader in non-alcoholic beverages which both stand to benefit from improving demand and new product launches, especially if the domestic economy accelerates as a result of recent stimulative government policies. The company's international brewery business is highlighted by its exposure to faster growing emerging markets through leading brands, San Miguel in the Philippines and Schincariol in Brazil, as well as the dominant and highly profitable position of Lion Nathan in Australia. The brewery business is meaningfully undervalued relative to peers on a sum of parts basis as it trades, for example, at over a 15% PE discount despite 20% greater earnings growth prospects than global peers. Kirin's pharmaceutical business, Kyowa Hakko Kirin, is a global market leader in the research, production and marketing of biopharmaceutical drugs. The company's pipeline of drugs in late-stage clinical trials and its ability to create high-quality and cost-competitive biosimilars offer significant earnings upside, as 200 billion worth of biologic drugs are going off patent in Japan alone by The company's recent 50 billion share buyback announcement is indicative of management's proactive stance on shareholder returns and is unique among Japanese companies who often lack such a commitment to shareholders. Furthermore, this shareholder commitment accompanied by the company's high free cash flow yield, modest payout ratio and restructuring potential should allow Page 4 of 9

5 for double digit dividend growth over the long term. Kirin trades at 12.8 times adjusted* forward earnings with a 2.4% dividend yield. RTL Group Germany Consumer Discretionary RTL Group is a media company that operates television stations throughout Europe, produces original programming and offers entertainment over the Internet. The company offers attractive media exposure through its leading market positions in France, Netherlands, Belgium, Spain, and Germany which, as its largest market, provides a defensive underpinning to the company due to the strength and stability of the German market. Over the near term, the company is well positioned for a recovery in European economies where ad spending in most markets remains well below precrises levels. The company is unique in its vertical integration as it owns Freemantle, the world's largest independent TV content producer that possesses a strong track record of producing industry leading content as seen through past hits such as American Idol, The Price is Right, The X Factor, Got Talent, The Apprentice, etc. This content production capability combined with the company's dominant market position creates a unique ability to develop, market and cross sell content across the company's diverse global footprint that could create significant long term growth as the value of premium content increases over time. The company's diversified and resilient revenue profile combined with its low leverage and high, stable free cash flows makes RTL a standout among dividend payers globally. Its impressive commitment to dividend payments includes over 5 billion euros of dividends paid in the past 5 years and, it is likely that its over 5% annual regular dividend yield will be supplemented with lucrative special dividends in coming years. RTL trades at 14.0 times forward earnings and offers a 9.3% dividend yield. Sales Diageo PLC United Kingdom Consumer Staples We exited our successful investment in Diageo, which has earned us over a 150% return over the last eight years, as current valuations are no longer as attractive, with the company s shares trading at 18 times forward earnings and offering a 2.5% dividend yield. Primaris Retail REIT Canada Financials/ REITs Primaris is a leading operator of enclosed shopping centers in Canada, with attractive, well tenanted properties which provide excellent long-term visibility on the sustainability and growth of dividend income. During the quarter, the company was acquired at a healthy premium by H&R and we thus decided to sell our stake. *Excluding the amortization of goodwill. Page 5 of 9

6 Outlook The emergence of downside risks and volatility for fixed income investments, which only a few quarters ago were seen as stable and safe, once again reminds us of the extraordinary volatility that we are continuing to experience in the post-financial crisis, policy driven world that we live in. We believe that our strategy of buying shares in strong companies, at attractive valuations and holding them for the long-term (i.e. 5 years) remains attractive in this environment. In this regard, a key differentiating factor of our investment discipline is the focus on three equally important components: 1) low P/E, 2) high dividend yield and 3) dividend growth. These three components are complementary and help ensure that our strategy remains compelling across a number of different economic and market environments. These three components also serve as a powerful risk management tool and ensure that we stay away from overvalued companies with aggressive payout ratios and declining future earnings and dividends. A recent headwind to short-term performance has been the negative sentiment towards dividend paying equities, which mistakenly are thought to underperform during periods of rising interest rates. In this light, it is prudent to consider the annualized double digit absolute, and +500 basis points relative performance of the top 20% of the S&P 500 by dividend yield during rolling five year periods from 1971 through 1981, which saw long-term interest rates rise from 6% to 15%. During this same period, the performance of the bottom 20% of the S&P 500 by P/E was even better. In fact, we see below that our price disciplines on a relative basis actually worked better during the period of rising rates, as rising rates force investors to focus on valuations and move away from speculative ventures. Source: SCCM Research Page 6 of 9

7 As we grapple with possible changes in the interest rate environment, we continue to find that our carefully constructed portfolio remains well placed with our companies having with much lower debt and much stronger balance sheets relative to the benchmark. Rising interest rates are a detriment to companies with large amounts of debt outstanding as their interest expense rises. Periods of rising rates are also normally accompanied by rising inflation and thus the ability of companies to grow earnings and dividends becomes key. We believe that our portfolio of worldleading, attractively valued companies continues to offer excellent long-term visibility, sustainability and growth in earnings and dividends. Recent purchases in this regard have helped accelerate the portfolio s already attractive dividend growth profile, with Kirin and Imperial Tobacco, increasing their most recent dividend payments YoY by 16.1% and 11.1%, respectively. In our International High Dividend portfolio, all of our companies have paid dividends thus far in the year. 68% of these companies have raised their dividend with an average increase of 8.7%. With strong balance sheets and continued earnings growth, we anticipate that this trend will continue in 2013 and beyond. Best Regards, Schafer Cullen Capital Management, Inc. Page 7 of 9

8 Appendix: Portfolio Exposure And Characteristics As Of 06/30/2013 Portfolio Exposure Sectors % Asset Regions % Asset Consumer Discretionary 2.2 Developed Asia Pacific 12.8 Consumer Staples 17.5 Continental Europe 39.5 Energy 10.2 United Kingdom 25.1 Financials/ REIT 16.6 North America 5.9 Health Care 18.8 Asia Pacific Emerging 4.4 Industrials 12.0 Latin America 2.0 Information Technology 1.4 EMEA 5.9 Materials 3.6 Telecommunications 11.1 Developed Markets 83.3 Utilities 2.3 Emerging Markets 12.3 Cash 4.4 Cash 4.4 Total Total Top 10 Countries United Kingdom Switzerland Germany France Singapore Canada Australia Netherlands South Africa Norway Top 10 Holdings Sanofi Novartis AG Roche Holding AG GlaxoSmithKline PLC Nestle S.A. Singapore Telecom Ltd. Deutsche Post AG Vodafone Group PLC British American Tobacco Munich Re AG Portfolio Characteristics Forward Forward Q2 13 Est. Est. Q2 13 Price / Dividend LT Debt / LT DPS LT EPS Market Earnings Yield Capital Growth Growth Cap SCCM Intl High Div $74,015 MSCI EAFE ETF $58,687 Source: SCCM Research, Bloomberg, FactSet, Morgan Stanley Page 8 of 9

9 Disclosure: Schafer Cullen Capital Management (SCCM or the Adviser ) is an independent investment advisor registered under the Investment Advisers Act of This information should not be used as the primary basis for any investment decision nor should it be considered as advice to meet your particular investment needs. The portfolio securities and sector weights may change at any time at the discretion of the Adviser. It should not be assumed that any security transactions, holdings or sectors discussed were or will be profitable, or that future recommendations or decisions will be profitable or equal the investment performance discussed herein. Investing in equity securities is speculative and involves substantial risk. Past performance is no guarantee of future results. Market conditions can vary widely over time and can result in a loss of portfolio value. Individual account performance results will vary and will not match that of the composite or model. This variance depends on factors such as market conditions at the time of investment, and / or investment restrictions imposed by a client which may cause an account to either outperform or underperform the composite or model s performance. A list of all recommendations made by SCCM within the immediately preceding period of not less than one year is available upon request. The strategy depicted in this report has been managed in accordance with the investment objectives of the strategy as determined by the Adviser. The Adviser has selected benchmarks, which in their opinion closely resemble the style of the securities held in the composite or model portfolio of the strategy (e.g. large cap value, small cap value, international, etc.). The securities held in the composite or model are actively managed while the benchmark index is not. Investors should be aware that the Adviser makes no attempt to match the portfolio securities, or the security weightings of the benchmark. The composite or model s performance will be affected greater by the price movements of individual securities as the composite or model is more concentrated, generally less than 100 securities, while a comparative benchmark will generally have between 500 and 2,500 securities where individual security price movements have a lesser affect. An individual cannot invest directly in an index. In the case where this report displays model results, please be aware that such results do not represent actual trading and that results may not reflect the impact that material economic and market factors might have had on the Adviser's decision-making if the Adviser were actually managing clients' money. Model and actual results reflect the deduction of advisory fees, brokerage or other commissions, and any other expenses that a client would have paid or actually paid (Net of Fee performance) and reflect the reinvestment of dividends and other earnings. Schafer Cullen Capital Management, Inc. makes no representation that the use of this material can in and of itself be used to determine which securities to buy or sell, or when to buy or sell them; SCCM makes no representation, either directly or indirectly, that any graph, chart, formula or other device being offered herein will assist any person in making their own decisions as to which securities to buy, sell, or when to buy or sell them. For comparative purposes, the adviser uses the ishares MSCI EAFE ETF. All opinions expressed constitute Schafer Cullen Capital Management s judgment as of the date of this report and are subject to change without notice. Page 9 of 9