At Envestnet’s 2025 Elevate Conference in Las Vegas, more than 2,000 advisors, fintech leaders, and industry executives gathered to explore the technologies and strategies driving the next wave of innovation in wealth management. Amidst discussions on scale, advisor efficiency, and integrated platforms, Jeff Cullen of Schafer Cullen Capital Management makes a compelling case for the enduring importance of value investing, active management, and global diversification.
Cullen sat down with The Wealth Advisor’s Scott Martin to discuss the evolving role of active exchange-traded funds (ETFs), the firm’s international strategies, and how advisors can align income-focused portfolios with long-term growth opportunities.
Energizing Active ETFs in Advisor Models
Cullen sees an unmistakable surge of interest in active ETFs among advisors—and for good reason. As he explains, “Advisors want active ETFs. They work better in models, so it checks a lot of boxes.” Cullen’s ETF offering, based on its existing separately managed account (SMA) strategy, reflects the rising demand for vehicles that combine an advisor-friendly structure with professional investment oversight. Although many investors are drawn to the transparency and liquidity of ETFs, they’re increasingly seeking active solutions that combine structure with skill.
Behind the scenes, Cullen’s team is focusing on more than just their popular covered call strategy. “We’re known, and I’ve been spending a lot more time with you trying to highlight the ETF that we run, which is based on a strategy that we have in a separately managed account format,” Cullen says, referring to the Cullen Enhanced Equity Income ETF (ticker: DIVP), which uses covered calls to generate additional income from equity positions.
“But in addition to that, Cullen historically is an asset management firm focusing on value and dividend investing,” he notes. That diversified approach allows Cullen Funds to offer a variety of strategies that deliver meaningful income through different methods—whether via traditional dividends or options premium—without sacrificing the growth potential advisors and clients still seek.
In the current environment—where volatility persists and market catalysts remain unpredictable—the ability to integrate both growth and value factors into model portfolios gives advisors a distinct edge.
Value Isn’t Just Defensive—It’s Diversifying
While growth stocks have taken center stage in recent years, Cullen pushes back on the binary mindset that sets value in opposition to growth. “There’s this misnomer that it’s growth versus value—it’s one or the other—and it’s a combination of the two,” he says. Cullen stresses that dividend-paying value stocks often bring hidden growth potential. “Just because a value stock is low P/E doesn’t mean it doesn’t have good earnings growth and good growth prospects or good dividends.”
The firm’s focus on dividend income resonates especially with clients nearing retirement or already drawing from their portfolios. “A lot of clients really like to get their monthly dividends or their quarterly dividends that come in portfolios,” Cullen notes, adding that the income component adds consistency during market downturns.
Cullen’s balanced investment philosophy goes beyond risk reduction—it’s about building resilient portfolios that can adapt across different economic and market cycles. “You had this pullback, and then you had the rocket on Trump’s reversal,” Cullen said, referring to market reactions. “It’s a dynamic market, and it’s showing the value of having growth and value in portfolios and not just having one style of investment.”
Reintroducing Advisors to International and Emerging Markets
While many U.S.-centric portfolios have outperformed in recent years, Cullen sees reason to look abroad again. “We have a really robust international offering and emerging market offering,” he explains. “That’s something that people just have forgotten about . . . and we have built tremendous track records with our portfolio manager in those spaces.”
International and emerging market strategies at Cullen follow the same disciplined value process, emphasizing high dividend yields and strong earnings potential. Japan, once overlooked for income, is now a source of rising dividends. “We’re seeing good dividend growth and higher yields from there,” Cullen says, noting that advisors are finally revisiting global allocations.
In emerging markets, Cullen’s team observes particularly strong upside in areas that have been neglected. “Our portfolio manager finds great earnings growth inside various companies,” he notes. “Besides small caps, emerging markets is really a place where a good active portfolio manager can deliver a lot of value.”
That thesis is bearing out in performance. The Cullen Emerging Markets High Dividend Fund (ticker: CEMDX) has grown its assets significantly—from $200 million to more than $1.3 billion—on the strength of returns and advisor engagement. “We have it inside model portfolios, so people who run models have been finding us through the strong returns, and when they hear the story and they talk to the portfolio manager, they’ve been investors,” Cullen says.
Why Global Income and Active Allocation Matter Now
For advisors building portfolios that must meet income needs today while preserving capital for tomorrow, Cullen’s message is clear: go beyond style boxes and geographic bias. By combining traditional U.S. value strategies with emerging and international dividend growth ideas, advisors may help deliver smoother return profiles without compromising opportunity.
At a time when models are the foundation of scalable advice and client complexity demands smarter diversification, active managers such as Cullen are stepping up with relevant tools. “We have a lot going on,” Cullen concludes, pointing to the firm’s growing lineup of ETFs, mutual funds, and SMA strategies.
As Elevate 2025 reinforced, the path forward for financial advisors isn’t about choosing between innovation and tradition—it’s about integrating the right elements from both. Cullen’s disciplined, income-driven global approach provides just that: a way to meet today’s expectations while preparing for tomorrow’s unknowns.
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