Canadian Value Momentum Fund Reports

December 2019 | Caldwell Canadian Value Momentum Fund Commentary

       

December 2019 Recap: 

 

The Caldwell Canadian Value Momentum Fund (We’ve rebranded! Our acronym has been shortened to “CVM”), declined 1.7% in December versus a gain of 0.5% for the S&P/TSX Composite Total Return Index (“Index”). While the Index posted a positive return, six of its eleven sectors were actually down for the month. Energy (+5.7%), Materials (+4.6%, led by gold stocks) and Technology (+3.2%, led by Shopify (+18.1%)) were the Index's top performers, while Consumer Staples (-5.2%) and Consumer Discretionary (-3.6%) were the worst performers. 

 

Top CVM performers in December were Wesdome Gold (“WDO”: +16.5%) and North American Construction (“NOA”: +9.0%). WDO responded to positive drilling results and overall positive sentiment on gold names, while NOA responded to strength in the Energy sector with the price of crude oil +10.7% in December.

 

The CVM's performance was dragged down by holdings in the Canadian grocers, Empire (-14.4%) and Metro (-7.9%), after Empire reported an operational miss and cited increasing competition. 

 

One stock was added to the portfolio in December: Equitable Bank (“EQB”). The company calls itself "Canada's Challenger Bank" and is currently the country's 9th largest independent Schedule I Bank. It has a strong history of ROE generation and prudent lending and is seeing attractive growth in customers and assets. EQB is also diversifying its funding sources and product categories, which are driven by its digital platform capabilities. The company is targeting a $4/share dividend by 2024 (vs $1.40/share today), which works out to a 20-25% dividend growth CAGR. 

 

Full Year 2019 Recap:

 

The CVM gained 15.1% in 2019 versus a gain of 22.9% for the Index. While the CVM's absolute return was its 2nd highest annual return over the last six years, the CVM struggled to keep pace with the very strong Index return. Looking at the performance attribution, a few things stick out: i) The CVM lost 560 bps relative to the Index in January 2019, when the Fund entered the new year with over 50% in cash. While the CVM's sell discipline added considerable value by significantly insulating the portfolio from the sizeable market decline in Q4-18, the Index's V-shaped pattern (sharp decline at the end of 2018 followed by a sharp recovery in Q1-19), was tough on the strategy. ii) The big 6 banks and the utilities sector added 320 bps and 150 bps to the Index return, respectively. Banks and utilities typically don't screen well in the CVM model. iii) Shopify alone added 160 bps to the Index return. The stock was the 3rd strongest performer on the TSX, gaining 174% in 2019. While Shopify is showing strong growth and momentum and has an exciting story, the lack of earnings, and hence a valuation anchored on revenue, has kept us on the sidelines. The Canadian market has a history of seeing stocks show incredible gains to become among the largest companies in the market, only for investors to subsequently see them fall from grace. Shopify is currently the Index's 12th largest company by market cap. It has revenue of $1.4B relative to its $50B market cap. As a reference, the average revenue of the Index's top 20 companies by market cap (excluding Shopify), is $31.3B. 

 

The CVM held a 9.7% cash weighting at year-end. The CVM has generated substantial value to investors over its long-term history driven by the combination of strong company-specific catalysts and a concentrated portfolio. We continue to look forward to strong results as we progress through 2020 and beyond.

 

We thank you for your continued support.

 

The CVM Team

CVM - Caldwell Canadian Value Momentum vs Canadian Small/Mid Cap Equity vs Canadian Equity

Return since August 15, 2011 (Performance Start Date): 10.0%. | Returns are annualized for periods greater than one year. | Source: Morningstar

 

The CVM was not a reporting issuer offering its securities privately from August 8, 2011 until July 20, 2017, at which time it became a reporting issuer and subject to additional regulatory requirements and expenses associated therewith.

 

Unless otherwise specified, market and issuer data sourced from Capital IQ.

 

As the constituents in the Canadian Equity category largely focus on securities of a larger capitalization and CCVMF considers, and is invested, in all categories, including smaller and micro-cap securities, we have also shown how CVM ranks against constituents focused in the smaller cap category. The above list represents 6 of a total of 377 constituents in the Canadian Equity category and 5 of a total of 105 constituents in the Canadian Small/Mid Equity category.

 

The information contained herein provides general information about the Fund at a point in time. Investors are strongly encouraged to consult with a financial advisor and review the Simplified Prospectus and Fund Facts documents carefully prior to making investment decisions about the Fund. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Rates of returns, unless otherwise indicated, are the historical annual compounded returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. Mutual funds are not guaranteed; their values change frequently and past performance may not be repeated. Publication date: January 14, 2020.

 

The Lipper Fund Awards are based on the Lipper Leader for Consistent Return rating, which is a risk-adjusted performance measure calculated over 36, 60 and 120 months. Lipper Leaders fund ratings do not constitute and are not intended to constitute investment advice or an offer to sell or the solicitation of an offer to buy any security of any entity in any jurisdiction. For more information, see lipperfundawards.com. Lipper Leader ratings change monthly. Lipper Fund Awards from Refinitiv, ©2019 Refinitiv. All rights reserved. Used under license. The Caldwell Canadian Value Momentum Fund Series A in the Canadian Equity Category for the 5-year period (out of a total of 69 funds) ending July 31, 2019. Lipper Leader ratings: 5 (3 years) and 5 (5 years).

 

FundGrade A+® is used with permission from Fundata Canada Inc., all rights reserved. The annual FundGrade A+® Awards are presented by Fundata Canada Inc. to recognize the “best of the best” among Canadian investment funds. The FundGrade A+® calculation is supplemental to the monthly FundGrade ratings and is calculated at the end of each calendar year. The FundGrade rating system evaluates funds based on their risk-adjusted performance, measured by Sharpe Ratio, Sortino Ratio, and Information Ratio. The score for each ratio is calculated individually, covering all time periods from 2 to 10 years. The scores are then weighted equally in calculating a monthly FundGrade. The top 10% of funds earn an A Grade; the next 20% of funds earn a B Grade; the next 40% of funds earn a C Grade; the next 20% of funds receive a D Grade; and the lowest 10% of funds receive an E Grade. To be eligible, a fund must have received a FundGrade rating every month in the previous year. The FundGrade A+® uses a GPA-style calculation, where each monthly FundGrade from “A” to “E” receives a score from 4 to 0, respectively. A fund’s average score for the year determines its GPA. Any fund with a GPA of 3.5 or greater is awarded a FundGrade A+® Award. For more information, see www.FundGradeAwards.com. Although Fundata makes every effort to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Fundata.

 

*  Categories defined by Canadian Investment Funds Standards Committee ("CIFSC")

November 2019 | Caldwell Canadian Value Momentum Fund Commentary

Caldwell Canadian Value Momentum
       

November Recap: 

 

The Fund gained 2.7% in November versus a gain of 3.6% for the S&P/TSX Composite Total Return Index (“Index”). The Index saw broad-based strength with 9 of the 11 sectors in positive territory, which more than offset weakness in cannabis, gold, and forest product names.

 

Top CCVMF performers in November were Real Matters (“REAL”: +23.0%), Goeasy (“GSY”: +16.0%), and Alimentation Couche-Tard (“ATD.B”: +10.0%).

 

REAL moved meaningfully higher after a monster quarter in which revenue and EBITDA beat analyst expectations by 25% and 42%, respectively. The results put on display the power of the earnings model as strong mortgage activity drove revenue through the platform. Share gains validate the strength of REAL's platforms, prompting analyst upgrades as growth runway is significant.

 

Analysts looked past an earnings miss for GSY as credit performance and loan growth were in line to ahead of expectations. GSY is the dominant player in the non-prime Canadian lending market, where demand is strong but competition is not as intense. A debt refinancing following the earnings release was viewed positively as it further lowers GSY's cost of funding, which is a key competitive barrier.

 

ATD.B rallied into its earnings report on the expectation of stronger U.S. fuel margins. While same-store-sale performance was very good and initiatives are progressing well, the major news was ATD.B's bid to acquire Caltex, a leading Australian convenience and fuel retailer. Acquisitions are a key part of ATD.B's DNA and the company has done well to grow shareholder value through its acquisition strategy. The offer is currently being reviewed by Caltex's Board, but if successful, would serve as a springboard to expand the company's presence in Asia Pacific. In addition to the U.S., ATD.B sees the region as a key growth area, given its expected contribution to global growth over the next decade plus.

 

No stocks were added to the portfolio in November.

 

The Fund held a 19.7% cash weighting at month-end. The CCVMF has generated substantial value to investors over its long-term history driven by the combination of strong company-specific catalysts and a concentrated portfolio. We continue to look forward to strong results as we progress through 2019 and beyond.

 

We thank you for your continued support. 

 

The CCVMF Team

CCVMF - Caldwell Canadian Value Momentum vs Canadian Small/Mid Cap Equity vs Canadian Equity

Return since August 15, 2011 (Performance Start Date): 10.3%. | Returns are annualized for periods greater than one year. | Source: Morningstar

 

The Fund was not a reporting issuer offering its securities privately from August 8, 2011 until July 20, 2017, at which time it became a reporting issuer and subject to additional regulatory requirements and expenses associated therewith.

 

Unless otherwise specified, market and issuer data sourced from Capital IQ.

 

As the constituents in the Canadian Equity category largely focus on securities of a larger capitalization and CCVMF considers, and is invested, in all categories, including smaller and micro-cap securities, we have also shown how CCVMF ranks against constituents focused in the smaller cap category. The above list represents 6 of a total of 376 constituents in the Canadian Equity category and 5 of a total of 106 constituents in the Canadian Small/Mid Equity category.

 

The information contained herein provides general information about the Fund at a point in time. Investors are strongly encouraged to consult with a financial advisor and review the Simplified Prospectus and Fund Facts documents carefully prior to making investment decisions about the Fund. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Rates of returns, unless otherwise indicated, are the historical annual compounded returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. Mutual funds are not guaranteed; their values change frequently and past performance may not be repeated. Publication date: December 17, 2019.

 

The Lipper Fund Awards are based on the Lipper Leader for Consistent Return rating, which is a risk-adjusted performance measure calculated over 36, 60 and 120 months. Lipper Leaders fund ratings do not constitute and are not intended to constitute investment advice or an offer to sell or the solicitation of an offer to buy any security of any entity in any jurisdiction. For more information, see lipperfundawards.com. Lipper Leader ratings change monthly. Lipper Fund Awards from Refinitiv, ©2019 Refinitiv. All rights reserved. Used under license. The Caldwell Canadian Value Momentum Fund Series A in the Canadian Equity Category for the 5-year period (out of a total of 69 funds) ending July 31, 2019. Lipper Leader ratings: 5 (3 years) and 5 (5 years).

 

FundGrade A+® is used with permission from Fundata Canada Inc., all rights reserved. The annual FundGrade A+® Awards are presented by Fundata Canada Inc. to recognize the “best of the best” among Canadian investment funds. The FundGrade A+® calculation is supplemental to the monthly FundGrade ratings and is calculated at the end of each calendar year. The FundGrade rating system evaluates funds based on their risk-adjusted performance, measured by Sharpe Ratio, Sortino Ratio, and Information Ratio. The score for each ratio is calculated individually, covering all time periods from 2 to 10 years. The scores are then weighted equally in calculating a monthly FundGrade. The top 10% of funds earn an A Grade; the next 20% of funds earn a B Grade; the next 40% of funds earn a C Grade; the next 20% of funds receive a D Grade; and the lowest 10% of funds receive an E Grade. To be eligible, a fund must have received a FundGrade rating every month in the previous year. The FundGrade A+® uses a GPA-style calculation, where each monthly FundGrade from “A” to “E” receives a score from 4 to 0, respectively. A fund’s average score for the year determines its GPA. Any fund with a GPA of 3.5 or greater is awarded a FundGrade A+® Award. For more information, see www.FundGradeAwards.com. Although Fundata makes every effort to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Fundata.

 

*  Categories defined by Canadian Investment Funds Standards Committee ("CIFSC")

October 2019 | Caldwell Canadian Value Momentum Fund Commentary

Caldwell Canadian Value Momentum
       

October Recap: 

 

The Caldwell Canadian Value Momentum Fund (“Fund” or “CCVMF”) gained 0.8% in October versus a loss of 0.9% for the S&P/TSX Composite Total Return Index (“Index”). The Index continued to see dispersion of performance with gains in Gold (+4.5%) and Industrials (+0.8%), offset by weakness in Consumer Staples (-4.6%), Health Care (-4.6%), Consumer Discretionary (-4.3%), and Energy (-4.3%). The Fund's strong performance was broad-based with 70% of holdings beating the Index return and over 80% beating their respective Sector returns.

 

Top CCVMF performers in October were Air Canada ("AC": +8.5%) and Element Fleet ("EFN": +5.7%).

 

Air Canada posted a solid earnings result despite continued disruption from the grounding of the Boeing 737 Max, which demonstrates the improved resiliency of AC’s business model. The company has further room to improve margins over the next few years - as laid out in its analyst day earlier this year - while a healthy demand environment and other self-help factors drive further growth runway.

 

Element Fleet continues to execute on its turnaround strategy with shares continuing to move higher after another strong earnings report in early November. The company is ahead of plan on its initial cost targets and is entering the growth phase of the plan. Price targets have moved higher across the board.

 

Two stocks were added to the portfolio in October: Wesdome Gold (“WDO”) and Major Drilling (“MDI”). As a reminder, for commodity-driven names, we are looking for company-specific catalysts that allow share prices to move higher outside of a higher commodity price. WDO has seen strong operational and drilling results, and we like the fact that its properties are 100% in Canada. While MDI is more sensitive to the underlying gold price, we expect senior gold producers' budgets to start showing growth after years of restrained spending, which is supported by healthy free cash flow generation this year.

 

In addition, the process is well underway to source a new addition to the Fund’s portfolio management group to complement the efforts of William Chin, Portfolio Manager and Chief Technical Analyst, and myself. The new addition will replace Mario Mainelli who, having been a valued member of the Caldwell team for the past five years, has moved on to pursue other opportunities. We wish Mario great success in his future endeavours.

 

The Fund held a 16.0% cash weighting at month-end. The CCVMF has generated substantial value to investors over its long-term history driven by the combination of strong company-specific catalysts and a concentrated portfolio. We continue to look forward to strong results as we progress through 2019 and beyond.

 

We thank you for your continued support. 

 

The CCVMF Team

CCVMF - Caldwell Canadian Value Momentum vs Canadian Small/Mid Cap Equity vs Canadian Equity

The Fund was not a reporting issuer offering its securities privately from August 8, 2011 until July 20, 2017, at which time it became a reporting issuer and subject to additional regulatory requirements and expenses associated therewith.

 

Unless otherwise specified, market and issuer data sourced from Capital IQ.

 

As the constituents in the Canadian Equity category largely focus on securities of a larger capitalization and CCVMF considers, and is invested, in all categories, including smaller and micro-cap securities, we have also shown how CCVMF ranks against constituents focused in the smaller cap category. The above list represents 6 of a total of 374 constituents in the Canadian Equity category and 5 of a total of 108 constituents in the Canadian Small/Mid Equity category.

 

The information contained herein provides general information about the Fund at a point in time. Investors are strongly encouraged to consult with a financial advisor and review the Simplified Prospectus and Fund Facts documents carefully prior to making investment decisions about the Fund. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Rates of returns, unless otherwise indicated, are the historical annual compounded returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. Mutual funds are not guaranteed; their values change frequently and past performance may not be repeated. Publication date: November 13, 2019.

 

FundGrade A+® is used with permission from Fundata Canada Inc., all rights reserved. The annual FundGrade A+® Awards are presented by Fundata Canada Inc. to recognize the “best of the best” among Canadian investment funds. The FundGrade A+® calculation is supplemental to the monthly FundGrade ratings and is calculated at the end of each calendar year. The FundGrade rating system evaluates funds based on their risk-adjusted performance, measured by Sharpe Ratio, Sortino Ratio, and Information Ratio. The score for each ratio is calculated individually, covering all time periods from 2 to 10 years. The scores are then weighted equally in calculating a monthly FundGrade. The top 10% of funds earn an A Grade; the next 20% of funds earn a B Grade; the next 40% of funds earn a C Grade; the next 20% of funds receive a D Grade; and the lowest 10% of funds receive an E Grade. To be eligible, a fund must have received a FundGrade rating every month in the previous year. The FundGrade A+® uses a GPA-style calculation, where each monthly FundGrade from “A” to “E” receives a score from 4 to 0, respectively. A fund’s average score for the year determines its GPA. Any fund with a GPA of 3.5 or greater is awarded a FundGrade A+® Award. For more information, see www.FundGradeAwards.com. Although Fundata makes every effort to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Fundata.

 
*  Categories defined by Canadian Investment Funds Standards Committee ("CIFSC")

September 2019 | Caldwell Canadian Value Momentum Fund Commentary

Caldwell Canadian Value Momentum
       

September Recap: 

 

The Fund declined 1.4% in September versus a gain of 1.7% for the S&P/TSX Composite Total Return Index (“Index”).

 

The Index saw widespread dispersion of performance with Financials (+6.4%) and Energy (+5.0%) posting strong gains while Materials (-7.5%), Health Care (-7.4%), and Technology (-7.1%) saw substantial declines.

 

Much of the movements were macro-driven, with Financials responding to a sharp reversal in interest rates, while investors revisited the beaten-down Energy sector following a drone strike on Saudi oil production. Meanwhile, Industrials (-2.4%) moved lower with weak global industrial production data and continued trade uncertainty, while Gold (-10.6%) led the Materials sector lower.

 

Top CCVMF performers in September were GoEasy (“GSY”: +10.7%) and Metro (“MRU”: +3.3%).

 

GSY entered into a strategic partnership agreement that will expand its distribution into point-of-sale consumer financing.

 

We saw no news on Metro.

 

The Fund was led lower by Kirkland Lake (“KL”: -8.3%) and Cargojet (“CJT”: -8.6%), both of which were top performers in August. We look forward to this upcoming earnings season as a catalyst for investors to re-focus on company-specific fundamentals. 

 

No stocks were added to the portfolio in September. 

 

The Fund held a 20.8% cash weighting at month-end. The CCVMF has generated substantial value to investors over its long-term history driven by the combination of strong company-specific catalysts and a concentrated portfolio. We continue to look forward to strong results as we progress through 2019 and beyond.

 

We thank you for your continued support. 

 

The CCVMF Team

CCVMF - Caldwell Canadian Value Momentum vs Canadian Small/Mid Cap Equity vs Canadian Equity

The Fund was not a reporting issuer offering its securities privately from August 8, 2011 until July 20, 2017, at which time it became a reporting issuer and subject to additional regulatory requirements and expenses associated therewith.

 

Unless otherwise specified, market and issuer data sourced from Capital IQ.

 

As the constituents in the Canadian Equity category largely focus on securities of a larger capitalization and CCVMF considers, and is invested, in all categories, including smaller and micro-cap securities, we have also shown how CCVMF ranks against constituents focused in the smaller cap category. The above list represents 6 of a total of 368 constituents in the Canadian Equity category and 5 of a total of 110 constituents in the Canadian Small/Mid Equity category.

 

The information contained herein provides general information about the Fund at a point in time. Investors are strongly encouraged to consult with a financial advisor and review the Simplified Prospectus and Fund Facts documents carefully prior to making investment decisions about the Fund. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Rates of returns, unless otherwise indicated, are the historical annual compounded returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. Mutual funds are not guaranteed; their values change frequently and past performance may not be repeated. Publication date: October 15, 2019.

 

FundGrade A+® is used with permission from Fundata Canada Inc., all rights reserved. The annual FundGrade A+® Awards are presented by Fundata Canada Inc. to recognize the “best of the best” among Canadian investment funds. The FundGrade A+® calculation is supplemental to the monthly FundGrade ratings and is calculated at the end of each calendar year. The FundGrade rating system evaluates funds based on their risk-adjusted performance, measured by Sharpe Ratio, Sortino Ratio, and Information Ratio. The score for each ratio is calculated individually, covering all time periods from 2 to 10 years. The scores are then weighted equally in calculating a monthly FundGrade. The top 10% of funds earn an A Grade; the next 20% of funds earn a B Grade; the next 40% of funds earn a C Grade; the next 20% of funds receive a D Grade; and the lowest 10% of funds receive an E Grade. To be eligible, a fund must have received a FundGrade rating every month in the previous year. The FundGrade A+® uses a GPA-style calculation, where each monthly FundGrade from “A” to “E” receives a score from 4 to 0, respectively. A fund’s average score for the year determines its GPA. Any fund with a GPA of 3.5 or greater is awarded a FundGrade A+® Award. For more information, see www.FundGradeAwards.com. Although Fundata makes every effort to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Fundata.

 
*  Categories defined by Canadian Investment Funds Standards Committee ("CIFSC")

August 2019 | Caldwell Canadian Value Momentum Fund Commentary

Caldwell Canadian Value Momentum
       

August Recap: 

 

The Caldwell Canadian Value Momentum Fund (“CCVMF”) gained 1.0% in August versus a gain of 0.4% for the S&P/TSX Composite Total Return Index (“Index”).

 

Top CCVMF performers in August were Kirkland Lake Gold (“KL”: +18.6%) and Cargojet ("CJT": +13.4%).

 

Kirkland participated with the broad-based rally in gold. Cargojet moved higher after announcing a strategic agreement, in which Amazon will take up to a 15% ownership in CargoJet, based on long-term delivery commitments. While growth in e-commerce was a key part of the Cargojet thesis, the agreement serves to de-risk the strategy and earnings outlook. 

 

Two stocks were added to the portfolio in August: TMX Group ("X") and Real Matters ("REAL").

 

TMX Group operates global markets and provides analytic solutions that facilitate the funding, growth and success of businesses, traders and investors. With a new CEO joining 5 years ago, the company has shifted away from traditional exchange trading architecture to focus on becoming a solutions provider within capital formation, data & analytics and derivatives. The company has a clear goal to achieve mid-single-digit revenue growth and double-digit EPS growth, with M&A providing additional upside. Valuation remains compelling with the stock trading below the peer group.

 

Real Matters is a technology company that is disrupting the mortgage lending and insurance industries. The company has a long growth runway via market share gains given its technology platform and outsourced model result in significantly better outcomes to lenders. Underlying market growth has inflected positively as refinance activity responds to lower interest rates while attractive incremental margins are just starting to get appreciated by investors.

 

A quick comment on the market: sector leadership has rotated throughout the past twelve months as investor sentiment has shifted between bouts of risk-on and risk-off activity. With no clear leadership, the portfolio today is very balanced between defence (consumer staples, gold, cash) and offence (select industrial, financial and energy names), with the common thread being that there are company-specific catalysts to move share prices higher.

 

The Fund held a 12.9% cash weighting at month end. The CCVMF has generated substantial value to investors over its long-term history driven by the combination of strong company-specific catalysts and a concentrated portfolio. We continue to look forward to strong results as we progress through 2019 and beyond.

 

We thank you for your continued support. 

 

The CCVMF Team

CCVMF - Caldwell Canadian Value Momentum vs Canadian Small/Mid Cap Equity vs Canadian Equity

The Fund was not a reporting issuer offering its securities privately from August 8, 2011 until July 20, 2017, at which time it became a reporting issuer and subject to additional regulatory requirements and expenses associated therewith.

 

Unless otherwise specified, market and issuer data sourced from Capital IQ.

 

As the constituents in the Canadian Equity category largely focus on securities of a larger capitalization and CCVMF considers, and is invested, in all categories, including smaller and micro-cap securities, we have also shown how CCVMF ranks against constituents focused in the smaller cap category. The above list represents 6 of a total of 372 constituents in the Canadian Equity category and 5 of a total of 110 constituents in the Canadian Small/Mid Equity category.

 

The information contained herein provides general information about the Fund at a point in time. Investors are strongly encouraged to consult with a financial advisor and review the Simplified Prospectus and Fund Facts documents carefully prior to making investment decisions about the Fund. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Rates of returns, unless otherwise indicated, are the historical annual compounded returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. Mutual funds are not guaranteed; their values change frequently and past performance may not be repeated. Publication date: September 17, 2019.

 

FundGrade A+® is used with permission from Fundata Canada Inc., all rights reserved. The annual FundGrade A+® Awards are presented by Fundata Canada Inc. to recognize the “best of the best” among Canadian investment funds. The FundGrade A+® calculation is supplemental to the monthly FundGrade ratings and is calculated at the end of each calendar year. The FundGrade rating system evaluates funds based on their risk-adjusted performance, measured by Sharpe Ratio, Sortino Ratio, and Information Ratio. The score for each ratio is calculated individually, covering all time periods from 2 to 10 years. The scores are then weighted equally in calculating a monthly FundGrade. The top 10% of funds earn an A Grade; the next 20% of funds earn a B Grade; the next 40% of funds earn a C Grade; the next 20% of funds receive a D Grade; and the lowest 10% of funds receive an E Grade. To be eligible, a fund must have received a FundGrade rating every month in the previous year. The FundGrade A+® uses a GPA-style calculation, where each monthly FundGrade from “A” to “E” receives a score from 4 to 0, respectively. A fund’s average score for the year determines its GPA. Any fund with a GPA of 3.5 or greater is awarded a FundGrade A+® Award. For more information, see www.FundGradeAwards.com. Although Fundata makes every effort to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Fundata.

 
*  Categories defined by Canadian Investment Funds Standards Committee ("CIFSC")

July 2019 | Caldwell Canadian Value Momentum Fund Commentary

Caldwell Canadian Value Momentum
       

July Recap: 

 

The Caldwell Canadian Value Momentum Fund (“CCVMF”) gained 3.2% in July versus a gain of 0.3% for the S&P/TSX Composite Total Return Index ("Index”). The CCVMF saw broad-based strength with 75% of its holdings out-pacing the Index return and half of its holdings gaining over 5%. As for the Index, Health Care (-13.3%), driven by weakness in cannabis stocks, was the worst performer, while Energy (-4.0%) continued to lag.

 

Top CCVMF performers in July were North American Construction Group (“NOA”: +17.3%) and Air Canada (“AC”: +14.4%). We have written in the past about earnings announcements being helpful catalysts to re-focus investors on company-specific fundamentals (versus macro noise) and that is exactly what happened with these two names.

 

NOA continued to post strong results on solid activity in core oil sands, ramping of third party repair and maintenance work and strong performance from recent acquisitions. The company provided an upbeat outlook which included incremental contract wins and guidance that exceeded analyst expectations.

 

Air Canada had a strong operational quarter that exceeded analyst expectations despite negative impacts from the grounding of Boeing's 737 MAX aircraft. The company is executing well on several initiatives designed to further increase shareholder value. 

 

No stocks were added to the portfolio in July.

 

The Fund held a 15.0% cash weighting at month end. The CCVMF has generated substantial value to investors over its long-term history driven by the combination of strong company-specific catalysts and a concentrated portfolio. We continue to look forward to strong results as we progress through 2019 and beyond.

 

We thank you for your continued support. 

 

The CCVMF Team

CCVMF - Caldwell Canadian Value Momentum vs Canadian Small/Mid Cap Equity vs Canadian Equity

The Fund was not a reporting issuer offering its securities privately from August 8, 2011 until July 20, 2017, at which time it became a reporting issuer and subject to additional regulatory requirements and expenses associated therewith.

 

Unless otherwise specified, market and issuer data sourced from Capital IQ.

 

As the constituents in the Canadian Equity category largely focus on securities of a larger capitalization and CCVMF considers, and is invested, in all categories, including smaller and micro-cap securities, we have also shown how CCVMF ranks against constituents focused in the smaller cap category. The above list represents 6 of a total of 371 constituents in the Canadian Equity category and 5 of a total of 110 constituents in the Canadian Small/Mid Equity category.

 

The information contained herein provides general information about the Fund at a point in time. Investors are strongly encouraged to consult with a financial advisor and review the Simplified Prospectus and Fund Facts documents carefully prior to making investment decisions about the Fund. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Rates of returns, unless otherwise indicated, are the historical annual compounded returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. Mutual funds are not guaranteed; their values change frequently and past performance may not be repeated. Publication date: August 15, 2019.

 

FundGrade A+® is used with permission from Fundata Canada Inc., all rights reserved. The annual FundGrade A+® Awards are presented by Fundata Canada Inc. to recognize the “best of the best” among Canadian investment funds. The FundGrade A+® calculation is supplemental to the monthly FundGrade ratings and is calculated at the end of each calendar year. The FundGrade rating system evaluates funds based on their risk-adjusted performance, measured by Sharpe Ratio, Sortino Ratio, and Information Ratio. The score for each ratio is calculated individually, covering all time periods from 2 to 10 years. The scores are then weighted equally in calculating a monthly FundGrade. The top 10% of funds earn an A Grade; the next 20% of funds earn a B Grade; the next 40% of funds earn a C Grade; the next 20% of funds receive a D Grade; and the lowest 10% of funds receive an E Grade. To be eligible, a fund must have received a FundGrade rating every month in the previous year. The FundGrade A+® uses a GPA-style calculation, where each monthly FundGrade from “A” to “E” receives a score from 4 to 0, respectively. A fund’s average score for the year determines its GPA. Any fund with a GPA of 3.5 or greater is awarded a FundGrade A+® Award. For more information, see www.FundGradeAwards.com. Although Fundata makes every effort to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Fundata.

 
*  Categories defined by Canadian Investment Funds Standards Committee ("CIFSC")

June 2019 | Caldwell Canadian Value Momentum Fund Commentary

Caldwell Canadian Value Momentum
       

June Recap: 

 

The Fund gained 1.7% in June versus a gain of 2.5% for the S&P/TSX Composite Total Return Index ("Index”). The Index continued to see wide dispersion in sector performance with Materials (+12.7%), led by Gold (+15.7%), and Consumer Discretionary (+6.6%) showing strong gains while Energy (-2.3%), Communication Services (-2.2%), and Consumer Staples (-1.9%) posted losses. 

 

Top CCVMF performers in June were Kirkland Lake Gold (“KL”: +20.7%) and Aecon Group ("ARE": +9.6%).

 

Kirkland continued to benefit from the strength in gold alongside the growing probability of U.S. rate cuts; however, we remind investors that the company also has strong company-specific growth drivers through strong production and discoveries in its world-class mines.

 

There was no company-specific news on Aecon but it seems that investors are weighing the company's record backlog against negative sentiment across the broader construction group. We expect company-specific fundamentals to ultimately prevail and look for a catalyst in this upcoming Q2 earnings season. 

 

Two stocks were added to the portfolio in June: Boyd Group ("BYD.UN") and Goeasy ("GSY").

 

Boyd operates vehicle collision and auto-glass repair centers in the U.S. and Canada (the U.S. accounts for 85% of revenue). The company has tripled its revenue over the past 5 years as it consolidates and brings institutional best practices to these fragmented markets and is looking to once again double its revenue going forward. Same-store-sales were 6.6% this past quarter as industry dynamics remain favourable with auto insurers consolidating vendor relationships and single-store operators struggle to compete with multi-shop peers.

 

Goeasy is a non-prime Canadian lender. Despite investor caution on the space (GSY trades at 9.9x consensus 2019 EPS estimate), credit trends remain stable and the stock made a new high following the company's investor day in May, in which it walked through the competitive environment and growth runway. From a competitive standpoint, GSY has a leadership position within the non-prime market with a strong brand, branch network and peer-leading performance, while online and payday loan players have struggled to gain traction. The business is highly profitable with a strong growth runway as it broadens its product offerings, distribution channels and geographic reach (GSY revenue is < $1 billion in a $186 billion non-prime market).

 

The Fund held a 13.0% cash weighting at month-end, down from 45.7% at the end of March. The fund has generated substantial value to investors over its long-term history driven by the combination of strong company-specific catalysts and a concentrated portfolio. We continue to look forward to strong results as we progress through 2019 and beyond.

 

We thank you for your continued support. 

 

The CCVMF Team

CCVMF - Caldwell Canadian Value Momentum vs Canadian Small/Mid Cap Equity vs Canadian Equity

The Fund was not a reporting issuer offering its securities privately from August 8, 2011 until July 20, 2017, at which time it became a reporting issuer and subject to additional regulatory requirements and expenses associated therewith.

 

Unless otherwise specified, market and issuer data sourced from Capital IQ.

 

As the constituents in the Canadian Equity category largely focus on securities of a larger capitalization and CCVMF considers, and is invested, in all categories, including smaller and micro-cap securities, we have also shown how CCVMF ranks against constituents focused in the smaller cap category. The above list represents 6 of a total of 374 constituents in the Canadian Equity category and 5 of a total of 113 constituents in the Canadian Small/Mid Equity category.

 

The information contained herein provides general information about the Fund at a point in time. Investors are strongly encouraged to consult with a financial advisor and review the Simplified Prospectus and Fund Facts documents carefully prior to making investment decisions about the Fund. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Rates of returns, unless otherwise indicated, are the historical annual compounded returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. Mutual funds are not guaranteed; their values change frequently and past performance may not be repeated. Publication date: July 11, 2019.

 

FundGrade A+® is used with permission from Fundata Canada Inc., all rights reserved. The annual FundGrade A+® Awards are presented by Fundata Canada Inc. to recognize the “best of the best” among Canadian investment funds. The FundGrade A+® calculation is supplemental to the monthly FundGrade ratings and is calculated at the end of each calendar year. The FundGrade rating system evaluates funds based on their risk-adjusted performance, measured by Sharpe Ratio, Sortino Ratio, and Information Ratio. The score for each ratio is calculated individually, covering all time periods from 2 to 10 years. The scores are then weighted equally in calculating a monthly FundGrade. The top 10% of funds earn an A Grade; the next 20% of funds earn a B Grade; the next 40% of funds earn a C Grade; the next 20% of funds receive a D Grade; and the lowest 10% of funds receive an E Grade. To be eligible, a fund must have received a FundGrade rating every month in the previous year. The FundGrade A+® uses a GPA-style calculation, where each monthly FundGrade from “A” to “E” receives a score from 4 to 0, respectively. A fund’s average score for the year determines its GPA. Any fund with a GPA of 3.5 or greater is awarded a FundGrade A+® Award. For more information, see www.FundGradeAwards.com. Although Fundata makes every effort to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Fundata.

 
*  Categories defined by Canadian Investment Funds Standards Committee ("CIFSC")

May 2019 | Caldwell Canadian Value Momentum Fund Commentary

Caldwell Canadian Value Momentum
       

May Recap: 

 

The Fund outperformed the S&P/TSX Composite Total Return Index (“Index”) by 260bps in May, declining 0.5% versus a loss of 3.1% for the Index. The Index saw wide dispersion in sector performance with Technology (+4.3%) and Gold (+3.3%) showing strong gains, while Health Care (-13.8%), Consumer Discretionary (-8.7%), and Financials (-5.1%) posted significant declines. The Fund continued its habit of out-performing a declining Index. Since inception (August 8, 2011), the Fund has now outperformed the Index in 28 of 35 down months for a 80% success ratio.

 

Top CCVMF performers in May were Air Canada (“AC”: +24.1%), Element Fleet Financial ("EFN": +17.7%) and Kirkland Lake Gold (“KL”:+7.9%).

 

We initiated a position in AC in late April and built up a full position by early May (thesis, below). The stock responded positively to two events: i) a Q1 report that was better than feared given disruption from the grounding of Boeing's 737 Max planes; ii) the announced acquisition of Transat which increases AC's focus on leisure product and has the potential for significant cost synergies.

 

EFN responded positively to solid Q1 results and a 10% increase to its 2020 EPS guidance, which suggests that management is making significant progress on its profitability plan.

 

While broad-based strength in gold helped, KL also traded higher on company specific news with a strong Q1 result that saw improved guidance at its Fosterville and Macassa mines alongside a 30%+ increase to the dividend. 

 

One stock was added to the portfolio in May: Air Canada ("AC"). 

 

Air Canada is Canada’s largest domestic and international airline serving more than 200 airports on six continents. The company has dramatically improved its business over the last several years, resulting in a significantly reduced cost structure, strong balance sheet, better cash flow generation, and higher return on invested capital. Despite this, the stock continues to trade at a meaningful discount to U.S. peers which, in turn, trade at a substantial discount to the broader market. There continue to be self-help levers for management to drive additional upside, including the addition of Aeroplan and Transat. 

 

The Fund held a 23.4% cash weighting at month end, down from 45.7% at the end of March. The cash weighting at the time of writing is 12.5% as two positions were initiated in early June. The fund has generated substantial value to investors over its long-term history driven by the combination of strong company-specific catalysts and a concentrated portfolio. We continue to look forward to strong results as we progress through 2019 and beyond.

 

We thank you for your continued support. 

 

The CCVMF Team

CCVMF - Caldwell Canadian Value Momentum vs Canadian Small/Mid Cap Equity vs Canadian Equity

The Fund was not a reporting issuer offering its securities privately from August 8, 2011 until July 20, 2017, at which time it became a reporting issuer and subject to additional regulatory requirements and expenses associated therewith.

 

Unless otherwise specified, market and issuer data sourced from Capital IQ.

 

As the constituents in the Canadian Equity category largely focus on securities of a larger capitalization and CCVMF considers, and is invested, in all categories, including smaller and micro-cap securities, we have also shown how CCVMF ranks against constituents focused in the smaller cap category. The above list represents 6 of a total of 372 constituents in the Canadian Equity category and 5 of a total of 113 constituents in the Canadian Small/Mid Equity category.

 

The information contained herein provides general information about the Fund at a point in time. Investors are strongly encouraged to consult with a financial advisor and review the Simplified Prospectus and Fund Facts documents carefully prior to making investment decisions about the Fund. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Rates of returns, unless otherwise indicated, are the historical annual compounded returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. Mutual funds are not guaranteed; their values change frequently and past performance may not be repeated. Publication date: June 13, 2019.

 

FundGrade A+® is used with permission from Fundata Canada Inc., all rights reserved. The annual FundGrade A+® Awards are presented by Fundata Canada Inc. to recognize the “best of the best” among Canadian investment funds. The FundGrade A+® calculation is supplemental to the monthly FundGrade ratings and is calculated at the end of each calendar year. The FundGrade rating system evaluates funds based on their risk-adjusted performance, measured by Sharpe Ratio, Sortino Ratio, and Information Ratio. The score for each ratio is calculated individually, covering all time periods from 2 to 10 years. The scores are then weighted equally in calculating a monthly FundGrade. The top 10% of funds earn an A Grade; the next 20% of funds earn a B Grade; the next 40% of funds earn a C Grade; the next 20% of funds receive a D Grade; and the lowest 10% of funds receive an E Grade. To be eligible, a fund must have received a FundGrade rating every month in the previous year. The FundGrade A+® uses a GPA-style calculation, where each monthly FundGrade from “A” to “E” receives a score from 4 to 0, respectively. A fund’s average score for the year determines its GPA. Any fund with a GPA of 3.5 or greater is awarded a FundGrade A+® Award. For more information, see www.FundGradeAwards.com. Although Fundata makes every effort to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Fundata.

 
*  Categories defined by Canadian Investment Funds Standards Committee ("CIFSC")

April 2019 | Caldwell Canadian Value Momentum Fund Commentary

Caldwell Canadian Value Momentum
       

April Recap: 

 

The Fund gained 2.4% in April versus a gain of 3.2% for the S&P/TSX Composite Total Return Index ("Index”). Sector performance for the Index was led by Consumer Discretionary (+7.0%), Technology (+6.4%) and Financials (+5.2%), partially offset by losses in REITs (-3.7%) and Materials (-2.5%) led by Gold (-5.5%). 

 

Top CCVMF performers in April were North American Construction Group (“NOA”: +12.1%) and Badger Daylighting ("BAD": +11.3%).

 

NOA rebounded after weaker performance in March. The company released a good "beat and raise" earnings report late in the month despite poor weather conditions, prompting analysts to increase price targets. The business outlook remains positive with a robust upcoming summer construction season and meaningful bidding opportunities. Despite significant price out-performance year-to-date, we believe substantial upside exists to fully reflect the company's transformation.

 

This is the 2nd consecutive month that BAD showed up as a top performer. While there was no incremental news in April, outside of a new CFO appointment, there is growing evidence that hydrovac excavation is gaining wider acceptance due to its safety and efficiency advantages over traditional techniques. The runway for growth is significant with BAD aiming to once again double its revenue base. 

 

As telegraphed in last month's note, we have initiated several new positions in the Fund. Three stocks were added to the portfolio in April: Brookfield Asset Management ("BAM.A"), Element Fleet Financial ("EFN") and DIRTT Environmental Solutions Ltd. ("DRT").

 

BAM.A is one of the largest alternative asset managers in the world with over $300 billion in AUM. They are value investors in the alternative  space (real estate, infrastructure, private equity) which is seeing secular tailwinds from institutional investors, increasing allocations to alternative asset classes. BAM.A has raised $20B in capital in the last 12 months and is expected to generate significant free cash flow over the coming decade, providing it with multiple levers for value creation.

 

EFN is the largest publicly traded fleet management company in North America. The new CEO has executed well on the turnaround story with material earnings improvement targeted over the next several years. We like turnaround stories, especially in uncertain economic climates, as value levers are in management's control and expect the stock's multiple to re-rate higher as ROE metrics improve.

 

DRT is another turnaround story that is also redefining commercial interior design and construction processes through its proprietary software and manufacturing capabilities. Despite a 20%+ 5-year revenue CAGR, virtually all senior management positions have been replaced so as to create a company that can scale the significant growth opportunity in front of it. The strategy is to leverage DRT’s technology and position it as a technology solution (vs. a construction solution) alongside bringing in better processes/KPIs/accountability into sales, marketing, manufacturing and capital allocation. Demand for DRT solutions is strong, evidenced by strong growth rates, particularly 59% growth in health care and 29% growth in education, with a massive growth runway given < $400M in current revenue against a $150B market. Other catalysts include a U.S. listing and potential for additional sell-side coverage given only 6 analysts currently cover the company. 

 

The Fund held a 27.7% cash weighting at month-end, down from 45.7% at the end of March. The fund has generated substantial value to investors over its long-term history, driven by the combination of strong company-specific catalysts and a concentrated portfolio. We continue to look forward to strong results as we progress through 2019 and beyond.

 

We thank you for your continued support. 

 

The CCVMF Team

CCVMF - Caldwell Canadian Value Momentum vs Canadian Small/Mid Cap Equity vs Canadian Equity

The Fund was not a reporting issuer offering its securities privately from August 8, 2011 until July 20, 2017, at which time it became a reporting issuer and subject to additional regulatory requirements and expenses associated therewith.

 

Unless otherwise specified, market and issuer data sourced from Capital IQ.

 

As the constituents in the Canadian Equity category largely focus on securities of a larger capitalization and CCVMF considers, and is invested, in all categories, including smaller and micro-cap securities, we have also shown how CCVMF ranks against constituents focused in the smaller cap category. The above list represents 6 of a total of 365 constituents in the Canadian Equity category and 5 of a total of 111 constituents in the Canadian Small/Mid Equity category.

 

The information contained herein provides general information about the Fund at a point in time. Investors are strongly encouraged to consult with a financial advisor and review the Simplified Prospectus and Fund Facts documents carefully prior to making investment decisions about the Fund. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Rates of returns, unless otherwise indicated, are the historical annual compounded returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. Mutual funds are not guaranteed; their values change frequently and past performance may not be repeated. Publication date: May 9, 2019.

 

FundGrade A+® is used with permission from Fundata Canada Inc., all rights reserved. The annual FundGrade A+® Awards are presented by Fundata Canada Inc. to recognize the “best of the best” among Canadian investment funds. The FundGrade A+® calculation is supplemental to the monthly FundGrade ratings and is calculated at the end of each calendar year. The FundGrade rating system evaluates funds based on their risk-adjusted performance, measured by Sharpe Ratio, Sortino Ratio, and Information Ratio. The score for each ratio is calculated individually, covering all time periods from 2 to 10 years. The scores are then weighted equally in calculating a monthly FundGrade. The top 10% of funds earn an A Grade; the next 20% of funds earn a B Grade; the next 40% of funds earn a C Grade; the next 20% of funds receive a D Grade; and the lowest 10% of funds receive an E Grade. To be eligible, a fund must have received a FundGrade rating every month in the previous year. The FundGrade A+® uses a GPA-style calculation, where each monthly FundGrade from “A” to “E” receives a score from 4 to 0, respectively. A fund’s average score for the year determines its GPA. Any fund with a GPA of 3.5 or greater is awarded a FundGrade A+® Award. For more information, see www.FundGradeAwards.com. Although Fundata makes every effort to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Fundata.

 
*  Categories defined by Canadian Investment Funds Standards Committee ("CIFSC")

 

March 2019 | Caldwell Canadian Value Momentum Fund Commentary

Caldwell Canadian Value Momentum
       

March Recap: 

 

The Fund declined 1.6% in March versus a gain of 1.0% for the S&P/TSX Composite Total Return Index ("Index”). After a broad-based market rally in February, sector performance was mixed in March with Technology (+5.0%), Utilities (+4.3%) and REITs (+3.4%) leading, and Financials (-1.4%) and Consumer Discretionary (-1.4%) lagging. 

 

Top CCVMF performers in March were Parkland Fuel (“PKI”: +10.9%) and Badger Daylighting ("BAD": +6.3%). PKI reported strong Q4 results and in-line 2019 guidance. The solid results helped ease investor uncertainty over a noisy environment that included volatility in energy prices, Alberta production curtailments and early innings of the SOL Group acquisition. BAD also had a strong Q4 report and reiterated 2019 guidance. The outlook remains strong driven by continued growth in the U.S. for infrastructure and utility projects. BAD is making solid progress on its strategic milestone of doubling the size of its U.S. business; we would not be surprised to see BAD set another 'doubling' goal once it reaches this milestone.

 

Despite this month's under-performance, we were once again encouraged to see the market return to rewarding company-specific fundamentals. Three of the Fund's four holdings that reported earnings in March (PKI, BAD and ATD.B) out-performed the market, with an average return of 7.8%. The CCVMF's strategy is built around company-specific catalysts and the best time for these to shine is around earnings. As such, we look forward to this upcoming Q1 reporting season.

 

No stocks were added to the portfolio in March. The team has been busy working through buy signals and added two new positions in April. While the buy list through Q1 reflected noise related to a macro-driven market, we are starting to see 'green shoots' that focus is returning back to company-specifics. We remain disciplined during this period and look forward to discussing purchases made subsequent to month end in next month's note.

 

The Fund held a 45.7% cash weighting at month end. The recent additions made in the Fund have lowered our cash position to approximately 35% at the time of writing. The fund has generated substantial value to investors over its long-term history, driven by the combination of strong company-specific catalysts and a concentrated portfolio. We continue to look forward to strong results as we progress through 2019 and beyond.

 

We thank you for your continued support. 

 

The CCVMF Team

CCVMF - Caldwell Canadian Value Momentum vs Canadian Small/Mid Cap Equity vs Canadian Equity

The Fund was not a reporting issuer offering its securities privately from August 8, 2011 until July 20, 2017, at which time it became a reporting issuer and subject to additional regulatory requirements and expenses associated therewith.

 

Unless otherwise specified, market and issuer data sourced from Capital IQ.

 

As the constituents in the Canadian Equity category largely focus on securities of a larger capitalization and CCVMF considers, and is invested, in all categories, including smaller and micro-cap securities, we have also shown how CCVMF ranks against constituents focused in the smaller cap category. The above list represents 6 of a total of 365 constituents in the Canadian Equity category and 5 of a total of 111 constituents in the Canadian Small/Mid Equity category.

 

The information contained herein provides general information about the Fund at a point in time. Investors are strongly encouraged to consult with a financial advisor and review the Simplified Prospectus and Fund Facts documents carefully prior to making investment decisions about the Fund. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Rates of returns, unless otherwise indicated, are the historical annual compounded returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. Mutual funds are not guaranteed; their values change frequently and past performance may not be repeated. Publication date: April 18, 2019.

 

FundGrade A+® is used with permission from Fundata Canada Inc., all rights reserved. The annual FundGrade A+® Awards are presented by Fundata Canada Inc. to recognize the “best of the best” among Canadian investment funds. The FundGrade A+® calculation is supplemental to the monthly FundGrade ratings and is calculated at the end of each calendar year. The FundGrade rating system evaluates funds based on their risk-adjusted performance, measured by Sharpe Ratio, Sortino Ratio, and Information Ratio. The score for each ratio is calculated individually, covering all time periods from 2 to 10 years. The scores are then weighted equally in calculating a monthly FundGrade. The top 10% of funds earn an A Grade; the next 20% of funds earn a B Grade; the next 40% of funds earn a C Grade; the next 20% of funds receive a D Grade; and the lowest 10% of funds receive an E Grade. To be eligible, a fund must have received a FundGrade rating every month in the previous year. The FundGrade A+® uses a GPA-style calculation, where each monthly FundGrade from “A” to “E” receives a score from 4 to 0, respectively. A fund’s average score for the year determines its GPA. Any fund with a GPA of 3.5 or greater is awarded a FundGrade A+® Award. For more information, see www.FundGradeAwards.com. Although Fundata makes every effort to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Fundata.

 
*  Categories defined by Canadian Investment Funds Standards Committee ("CIFSC")

 

February 2019 | Caldwell Canadian Value Momentum Fund Commentary

Caldwell Canadian Value Momentum
       

February Recap: 

 

The Fund gained 4.6% in February versus a gain of 3.2% for the S&P/TSX Composite Total Return Index ("Index”). Broad-based market strength continued in February with every sector (excluding materials, driven by gold) posting a positive return. The Fund's strong performance was broad-based with nine out of ten holdings out-pacing the market return. 

 

Top CCVMF performers in February were North American Energy Group (“NOA”: +26.2%), Enerflex ("EFX": +15.2%), Kirkland Lake Gold ("KL": +13.8%) and Cargojet ("CJT": +10.7%). NOA's strength comes off the back of a quarter that saw revenue and EBITDA beat analyst expectations by 40% and 37%, respectively. Revenue grew 60% year-over-year, with half of that coming from organic growth, driven by higher earth-moving volumes in oil sands, improved revenue from mine support and expanded maintenance activity. Management continues to call for EPS of $1.60 in 2019, underpinned by a strong backlog that has increased over 12-fold to $1.2B. Enerflex reported record backlog and bookings, driven by several major project wins that give the company good earnings visibility through 2019 and into 2020. The company appears to be on the cusp of a multi-year period of margin expansion given the nature of the backlog. Kirkland Lake delivered strong cost performance with total cash costs of $320/oz. They also provided a strong update to their reserve and resource estimates, driven by its Fosterville mine. This drove an upward revision to the company's 3-year guidance. Cargojet reported results ahead of expectations despite Canada-Post related headwinds. The company continues to have a strong revenue pipeline given its unique positioning in the e-commerce eco-system. 

 

After the sharp and broad-based market sell off in Q4-2018, followed by the sharp and broad based current market rally, we found it refreshing to see the market return to rewarding company-specific fundamentals. Not coincidentally, the CCVMF's top four performers were also the four holdings that reported earnings in February.

 

No stocks were added to the portfolio in February.

 

The Fund held a 37.1% cash weighting at month end. The fund has generated substantial value to investors over its long-term history driven by the combination of strong company-specific catalysts and a concentrated portfolio. We continue to look forward to strong results as we progress through 2019 and beyond.

 

We thank you for your continued support. 

 

The CCVMF Team

CCVMF - Caldwell Canadian Value Momentum vs Canadian Small/Mid Cap Equity vs Canadian Equity

The Fund was not a reporting issuer offering its securities privately from August 8, 2011 until July 20, 2017, at which time it became a reporting issuer and subject to additional regulatory requirements and expenses associated therewith.

 

Unless otherwise specified, market and issuer data sourced from Capital IQ.

 

As the constituents in the Canadian Equity category largely focus on securities of a larger capitalization and CCVMF considers, and is invested, in all categories, including smaller and micro-cap securities, we have also shown how CCVMF ranks against constituents focused in the smaller cap category. The above list represents 6 of a total of 370 constituents in the Canadian Equity category and 5 of a total of 111 constituents in the Canadian Small/Mid Equity category.

 

The information contained herein provides general information about the Fund at a point in time. Investors are strongly encouraged to consult with a financial advisor and review the Simplified Prospectus and Fund Facts documents carefully prior to making investment decisions about the Fund. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Rates of returns, unless otherwise indicated, are the historical annual compounded returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. Mutual funds are not guaranteed; their values change frequently and past performance may not be repeated. Publication date: March 19, 2019.

 

FundGrade A+® is used with permission from Fundata Canada Inc., all rights reserved. The annual FundGrade A+® Awards are presented by Fundata Canada Inc. to recognize the “best of the best” among Canadian investment funds. The FundGrade A+® calculation is supplemental to the monthly FundGrade ratings and is calculated at the end of each calendar year. The FundGrade rating system evaluates funds based on their risk-adjusted performance, measured by Sharpe Ratio, Sortino Ratio, and Information Ratio. The score for each ratio is calculated individually, covering all time periods from 2 to 10 years. The scores are then weighted equally in calculating a monthly FundGrade. The top 10% of funds earn an A Grade; the next 20% of funds earn a B Grade; the next 40% of funds earn a C Grade; the next 20% of funds receive a D Grade; and the lowest 10% of funds receive an E Grade. To be eligible, a fund must have received a FundGrade rating every month in the previous year. The FundGrade A+® uses a GPA-style calculation, where each monthly FundGrade from “A” to “E” receives a score from 4 to 0, respectively. A fund’s average score for the year determines its GPA. Any fund with a GPA of 3.5 or greater is awarded a FundGrade A+® Award. For more information, see www.FundGradeAwards.com. Although Fundata makes every effort to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Fundata.

 
*  Categories defined by Canadian Investment Funds Standards Committee ("CIFSC")

 

January 2019 | Caldwell Canadian Value Momentum Fund Commentary

< Back

 

Update on the Caldwell Canadian Value Momentum Fund

January Recap 

 

The Fund gained 3.1% in January versus a gain of 8.7% for the S&P/TSX Composite Total Return Index ("Index”). Broad-based market weakness in Q4 turned into broad-based strength in January. Health Care, driven by weed stocks, was the best-performing sector (+43.2%). Technology, Consumer Discretionary and Energy all posted gains of 10%+. 

 

Top CCVMF performers in January were North American Energy Group (“NOA”: +13.1%) and Badger Daylighting (“BAD”: +8.4%). NOA moved higher with the broader energy space, while BAD saw management active in the NCIB in early January. There were no company-specific catalysts beyond these. 

 

Three stocks were added to the portfolio in January: Kirkland Lake Gold ("KL"), Empire Ltd. ("EMP.A") and Enerflex ("EFX").

 

Kirkland Lake was added back to the portfolio following their Investor Day which confirmed the company's strong growth profile.

 

Empire was also added back to the portfolio after a strong earnings report that saw EBITDA beat analyst expectations by over 10% on strong same-store-sales growth of 3.2%. The self-help/cost story remains a tailwind, along with inflation returning to the industry.

 

Enerflex provides equipment and services used to build the infrastructure required to support growing global demand for natural gas. The company has done well to shift its revenue mix towards higher-margin and recurring revenue. Recent bookings strength has led to a record-high backlog, which we expect will drive the share price higher. 

 

The Fund held a 38.8% cash weighting at month end. The Fund continues to generate substantial value to investors over its long-term history driven by the combination of strong company-specific catalysts and a concentrated portfolio. We continue to look forward to strong results as we progress through 2019 and beyond.

 

We thank you for your continued support. 

 

The CCVMF Team

CCVMF - Caldwell Canadian Value Momentum vs Canadian Small/Mid Cap Equity vs Canadian Equity

The Fund was not a reporting issuer offering its securities privately from August 8, 2011 until July 20, 2017, at which time it became a reporting issuer and subject to additional regulatory requirements and expenses associated therewith.

 

Unless otherwise specified, market and issuer data sourced from Capital IQ.

 

As the constituents in the Canadian Equity category largely focus on securities of a larger capitalization and CCVMF considers, and is invested, in all categories, including smaller and micro-cap securities, we have also shown how CCVMF ranks against constituents focused in the smaller cap category. The above list represents 5 of a total of 369 constituents in the Canadian Equity category and 6 of a total of 112 constituents in the Canadian Small/Mid Equity category.

 

The information contained herein provides general information about the Fund at a point in time. Investors are strongly encouraged to consult with a financial advisor and review the Simplified Prospectus and Fund Facts documents carefully prior to making investment decisions about the Fund. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Rates of returns, unless otherwise indicated, are the historical annual compounded returns including changes in unit value and reinvestment of all distributions and do not take into account sales, redemption, distribution or optional charges or income taxes payable by any unitholder that would have reduced returns. Mutual funds are not guaranteed; their values change frequently and past performance may not be repeated. Publication date: February 19, 2019.

 

FundGrade A+® is used with permission from Fundata Canada Inc., all rights reserved. The annual FundGrade A+® Awards are presented by Fundata Canada Inc. to recognize the “best of the best” among Canadian investment funds. The FundGrade A+® calculation is supplemental to the monthly FundGrade ratings and is calculated at the end of each calendar year. The FundGrade rating system evaluates funds based on their risk-adjusted performance, measured by Sharpe Ratio, Sortino Ratio, and Information Ratio. The score for each ratio is calculated individually, covering all time periods from 2 to 10 years. The scores are then weighted equally in calculating a monthly FundGrade. The top 10% of funds earn an A Grade; the next 20% of funds earn a B Grade; the next 40% of funds earn a C Grade; the next 20% of funds receive a D Grade; and the lowest 10% of funds receive an E Grade. To be eligible, a fund must have received a FundGrade rating every month in the previous year. The FundGrade A+® uses a GPA-style calculation, where each monthly FundGrade from “A” to “E” receives a score from 4 to 0, respectively. A fund’s average score for the year determines its GPA. Any fund with a GPA of 3.5 or greater is awarded a FundGrade A+® Award. For more information, see www.FundGradeAwards.com. Although Fundata makes every effort to ensure the accuracy and reliability of the data contained herein, the accuracy is not guaranteed by Fundata.

 
*  Categories defined by Canadian Investment Funds Standards Committee ("CIFSC")