April 2023 | Caldwell Canadian Value Momentum Fund Commentary

April Recap:

The Caldwell Canadian Value Momentum Fund (“CVM” or “Fund”) gained +1.4% versus a gain of +2.9% for the S&P/TSX Composite Total Return Index (“Index”). At the sector level, Communication Services, Health Care, and Energy were relative outperformers, whereas Industrials, Real Estate, and Consumer Staples underperformed. The performance of equities in April was broad-based as every single sector in the Index delivered positive returns.

Top performers in April were Ero Copper (“ERO”, +11.6%), iA Financial (“IAG”, +6.1%), and Restaurant Brands International (“QSR”, +4.7%). ERO re-rated higher as management provided a materially positive update to its five-year copper production outlook, which was better than what the market had expected. IAG re-rated higher as investors appreciated the improving product mix and the positive new business momentum that the company had demonstrated in its latest quarterly results. QSR’s shares appreciated as the company benefitted from positive momentum in all its restaurant brands, both domestically and internationally.

During April, the Fund initiated a position in First Quantum Minerals (“FM”). FM is a global copper producer with mines and projects in Panama, Zambia, Spain, Mauritania, Turkey, Finland, Argentina, and Peru. Its shares are likely to offer decent upside as the company has made it its near-term focus to reduce its debt load, raising its debt reduction target from US$1 billion to US$3 billion. Additionally, the company’s brownfield projects continue to show good progression.

The Fund held an 11.2% cash weighting at month-end. While we remain mindful of the macro environment, the Fund employs a bottom-up investment approach designed to seek out attractive investment opportunities in any market. CVM has generated substantial value for 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 2023 and beyond.

Standard performance as at April 30, 2023:
Caldwell Canadian Value Momentum Fund (Series F): 1 Year: -5.8%, 3 year: 13.7%, 5 year: 7.7%, Since Inception (August 29, 2014): 7.8%.
S&P/TSX Composite Total Return Index: 1 Year: 2.7%, 3 year: 15.2%, 5 year: 9.0%, Since Inception (August 29, 2014): 6.4%.

Actual Investments, first purchased: ERO 3/23/2023, IAG 11/18/2020, QSR 11/4/2022.

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 & Morningstar Direct.

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.

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.

Publication date: May 16, 2023.

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