Schafer Cullen Capital Management Emerging Markets High Dividend Strategy 4 th Quarter Performance Information As of December 31, 2015

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1 Schafer Cullen Capital Management Emerging Markets High Dividend Strategy 4 th Quarter 2015 Performance Information As of December 31, 2015 Annualized Returns (%) Since Q4 YTD 1 Year 3 Year 5 Year Inception Performance as of 12/31/ /31/05 SCCM Emerging High Dividend (gross) SCCM Emerging High Dividend (net) MSCI Emerging Markets Index ishares MSCI Emerging Markets ETF The SCCM Emerging Markets High Dividend Composite returned 1.8% (net of fees) in the 4th quarter versus 0.7% for the MSCI Emerging Markets Index. The best performing countries that we had exposure to in the quarter were Indonesia, China/Hong Kong and Malaysia while Greece, Poland and Czech Republic were the worst performing. Our greater exposure relative to the MSCI EM Index to Indonesia helped performance. Our greater exposure to Greece and Poland and our lesser exposure to China/Hong Kong and Malaysia hurt relative performance. Below are the 3rd quarter local currency and U.S. dollar returns of regional MSCI benchmarks that are pertinent to our exposure: Regional Performance Performance as of 9/30/2015 Q4 YTD Local USD Local USD MSCI EM 1.5% 0.7% -5.8% -14.9% MSCI EM ASIA 2.9% 3.5% -5.8% -9.8% MSCI EMEA -1.5% -8.2% -2.6% -20.0% MSCI EM LATAM -2.1% -2.7% -8.8% -31.0% The best performing currencies that we had exposure to in the quarter were the Indonesian Rupiah, Turkish Lira and Malaysian Ringgit while the worst performing currencies were the South African Rand, Russian Ruble and Polish Zloty. On a relative basis, our greater exposure to the Indonesian Rupiah and Turkish Lira aided performance. However, our greater exposure to the Russian Ruble and Polish Zloty and our lesser exposure to the Malaysian Ringgit hurt relative performance. In general, emerging market currencies strengthened versus the U.S. dollar during the quarter. The top performing sectors in the MSCI Emerging Markets index in the quarter were Information Technology, Health Care and Consumer Discretionary while Telecommunication Services, Industrials and Materials were the worst performing sectors. Performance relative to the benchmark was aided by our lesser exposure to Materials and our greater exposure to Health Care and Consumer Discretionary. Performance was hurt by our greater exposure to Telecommunication Services and Industrials and our lesser exposure to the Information Technology sector.

2 Top performing stocks in the quarter were Baoxin Auto Group (China/HK, Consumer Discretionary), Value Partners (China/HK, Financials), Telekomunik Indonesia (Indonesia, Telecommunications) and Siliconware Precision (Taiwan, Information Technology). The worst performers were MTN Group (South Africa, Telecommunications), MMI Holdings (South Africa, Financials), Asian Pay Television (Singapore, Consumer Discretionary), and Powszechny Zaklad Ubezpiecze (Poland, Financials). New purchases in the quarter were made in shares of Hutchison Port Holdings (China/HK, Industrials), Mobile Telesystems (Russia, Telecommunications) and Intouch Holdings (Thailand, Telecommunications). Sales in the quarter were made in shares of Standard Chartered (China/HK, Financials). Our top five country exposures at the end of the quarter were to China/HK, Taiwan, India, South Africa and Mexico. We have included summary portfolio exposure information below: Portfolio Exposure SCCM MSCI SCCM MSCI Sectors EM (%) EM (%) Top 10 Countries EM (%) EM (%) Financials ex. REITS China/HK Consumer Discretionary Taiwan Information Technology India Telecommunication Services South Africa Industrials Mexico REITS Israel Consumer Staples Turkey Energy Indonesia Materials Russia Health Care Brazil Other Utilities Total SCCM MSCI SCCM Regions EM (%) EM (%) Top 10 Holdings EM (%) Asia Pacific SAB Miller PLC 3.6 EMEA Taiwan Semiconductor 3.5 Latin America AIA Group 3.5 Elbit Systems 3.4 Erste Group Bank 3.0 ICICI Bank 2.9 Komercni Banka 2.7 Religare Health Trust 2.7 Terrafina 2.6 Value Partners Group 2.5 Portfolio Characteristics Price / Dividend Average Earnings Yield LT DPS LT EPS Market Cap Forward NTM Growth Growth ($B) SCCM Emerging Markets High Dividend MSCI EM Index of 8

3 Market Outlook In 2015, EM stocks continued their underperformance compared to developed market stocks as commodity price weakness, negative fund flows, concerns over a slowdown in China, political instability, and an increase in U.S. interest rates and the U.S. dollar combined to produce a negative impact. The sell-off was broad based and even traditionally defensive stocks declined as much or more than the overall index as style factors such as dividend yield, value, low volatility, etc. were less helpful as in the past in cushioning declines. While the SCCM EM High Dividend strategy could not escape the broad based sell-off, the table below shows that relative performance was reasonably strong compared to these underlying style factors: 2015 Relative Performance in Emerging Markets Source: MSCI, SCCM Research 12/31/15 With emerging markets stocks down over 40% from their peak in April 2011 they appear attractively valued and present a good long-term investment opportunity. As seen below, the CAPE ratio, which looks at cyclically adjusted P/E ratios, is more than 1 standard deviation below its long-term average: 3 of 8

4 EM Equity Valuations Getting Cheaper The chart below provides evidence that EM stocks are also extremely cheap relative to developed market stocks, especially U.S. stocks. It shows the relative CAPE ratios of EM stocks compared to U.S. stocks is over 1 standard deviation below its 30 year average and near its lowest level during that period: EM Relative Equity Valuations vs U.S. 4 of 8

5 Such valuation levels indicate that investors who can avoid being rattled by market volatility and take a long-term view on EM equity returns should be rewarded. Unfortunately, it remains difficult to predict when near-term performance will improve since many emerging markets are undeniably facing challenges. As is often the case, determining whether the current attractive valuations discount the challenges emerging markets face is difficult. If the earnings growth of EM stocks declines in 2016, then the low current PE ratios of EM stocks are less meaningful from a fundamental perspective since these ratios will increase with lower earnings. After declining by 12% in 2015, Bloomberg estimates currently forecasts the MSCI EM index to grow earnings by an average of over 15% per year from 2016 to 2018 which appears aggressive in our view. However, the index is trading at around 11x 2016 EPS estimates so that even if actual earnings growth is lower than these forecasts as we expect, then a good case can still be made that current valuations do indeed discount the challenges. In this scenario, the inevitable turn in the relative and absolute performance of EM stocks may then soon be upon us. In this regard we feel well positioned with our exposure since our portfolio companies are relatively immune from business areas expected to produce the weakest earnings trends (commodities, energy, industrial, banks), while more exposed to more resilient or growing emerging market industries (consumer, services, reform related, non-cyclical businesses, technology). If one takes a longer-term view as SCCM always does, then we think a positive long-term outlook for emerging market stocks remains intact regardless of whether investors inherently are optimists or pessimists regarding emerging markets. We tend to be optimists and hold the view that emerging markets will selectively (or collectively) learn from their mistakes and emulate reforms made in developed markets over time. Countries will further open and develop their markets, become more transparent, less corrupt, embrace capitalism and democracy, etc. Emerging market companies can do the same and emulate the best practices of developed market companies. Such change can herald in a long-term bull market in emerging market equities which can produce significant gains, especially since the market capitalizations of most emerging markets are so small compared to developed markets: Market Cap as a % of GDP 200% 180% 160% 140% 120% 100% 80% 60% 40% 20% 0% Poland Peru Turkey Mexico Italy India Brazil Germany Indonesia China Norway Spain France Japan Thailand Korea Note: Note: Red Red represents represents emerging emerging markets & blue, while developed blue represents markets. developed markets. Malaysia United Kingdom United States Canada Australia Finland Sweden Taiwan Switzerland 5 of 8

6 Even if investors disagree with SCCM and have a pessimistic view on EM countries, we would still argue that a positive intermediate to long-term outlook is warranted. Structural pessimists typically believe that these countries will never change and make the above stated improvements. Instead, pessimists see emerging markets as relegated to and caught within the boom-bust cycles that have characterized many of them historically. However, since so many emerging markets have already declined so significantly from their peaks, it is more likely that they are already closer to bust and preparing for the subsequent boom. Further, if one looks historically at how bombed out emerging markets have performed after significant prior weakness, the returns during the boom periods can be very significant. For example, Brazil is down more than 70% from its post financial crises peak in April 2011 which represents an overall decline that is over 10% worse in magnitude and three times the duration of the averages of the seven prior bust periods Brazil has experienced since If investors can avoid the impact of the bust period decline by being under-weight the market as SCCM has been since the start of the recent decline, one can see how the subsequent gains can be massive with the 6 subsequent boom periods producing an average total return of over 500%: Brazil: Boom & Bust Cycles Start End Duration (months) Total Return (USD) 4/92 11/ % 11/92 2/ % 2/94 5/ % 5/94 9/ % 9/94 3/ % 3/95 7/ % 7/97 1/ % 1/99 3/ % 3/00 10/ % 10/02 5/ % 5/08 11/ % 11/08 4/ % 4/11 Present* % Average Boom Period % Average Bust Period % Note: Blue represents bust cycles while white represents boom cycles. *Present- 1/21/2016 Source: Bloomberg, SCCM Research 12/31/2015 Emerging markets have historically posted exceptional returns after bust periods because a natural transition occurs whereby the factors that undermined and contributed to weak EM equity performance change from negative to positive. New government leadership comes to power as society becomes repulsed by the poor past leadership that ruined their economies and votes for change in elections by choosing administrations with better economic and business policies. The same occurs with poor corporate management who are voted out by shareholders and boards or quit as a result of their dismal performance. Current account deficits turn to surpluses as declining currencies naturally rebalance the country s external position. Significant price declines (like those currently occurring in commodity and energy markets) reverse into periods of prolonged gains as the price declines overshoot and become unsustainable as capacity is reduced to naturally rebalance supply with demand. These transitions often occur when valuations are particularly attractive and earnings compressed to barebones levels that represent minimalist levels of consumption, investment, government spending, etc. This creates a potent combination of attractive valuations, earnings growth and valuation re-ratings that drive exceptional equity market returns during the subsequent boom periods. This routinely occurs, as there have been few exceptions to this boom-bust phenomenon when one looks to the history of emerging markets. 6 of 8

7 The lesson for investors is to not panic at the worst time and sell out during the bust and thus not reap the gains that occur during the boom. In fact, disciplined investors understand that it is normal for various asset classes to go in and out of favor. Those investors who recognize market dislocations and add to their positions when they occur often earn the best long-term investment returns. This allows these investors to lower their cost bases to particularly attractive valuation levels, which then allow for strong price gains. Dividend strategies are a particularly attractive way to employ this strategy since investors are paid to wait for better returns during periods of weak performance. Further, the reinvestment of dividends received naturally lowers the cost bases of existing positions without necessarily adding additional investment as SCCM also strongly recommends during market dislocations. Our portfolio exposure and strategy remains relatively unchanged from the recent past as should be expected. Because the recent EM equity market decline has been rather undifferentiated in nature, we continue to target the 'babies thrown out with the bath water. The general characteristics of these investments are similar to what we already own in emerging markets - high quality EM companies with attractive valuations and dividend attributes that are relatively insulated from significant risks and that will benefit from secular long-term growth drivers. Recent purchases have been focused around this theme and are likely to continue to be in the future. Thank you for your continued support. Feel free to reach out to us if you have any questions. Best Regards, Rahul Sharma Executive Director / Portfolio Manager Schafer Cullen Capital Management 7 of 8

8 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 decisionmaking 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. All opinions expressed constitute Schafer Cullen Capital Management s judgment as of the date of this report and are subject to change without notice. 8 of 8