Month End Recap:
For the month of August, the Caldwell Canadian Value Momentum Fund (CVM or Fund) gained 3.3% versus a gain of 5.0% for the S&P/TSX Composite Total Return Index (Index)1. From a sector standpoint, Materials, Healthcare, and Information Technology were relative outperformers, whereas Consumer Staples, Industrials, and Utilities underperformed.
Top performers in the month of August were Kinross Gold (K), Agnico Eagle Mines (AEM), and 5N Plus (VNP)2. K advanced as its quarterly results highlighted record free cash flow, accelerating shareholder returns, and stronger-than-expected operating performance. Production exceeded forecasts while costs came in lower, driving record margins. The company reduced net debt close to zero and resumed a sizable buyback program, reinforcing balance sheet strength. Management reiterated full-year guidance with performance tracking ahead of targets, while investors were encouraged by the potential for continued execution. AEM rerated higher after the company reported record results supported by stronger production, lower costs, and robust free cash flow. Management highlighted improved margins and rising cash generation, which drove debt reduction, a shift to a net cash position, and the resumption of share buybacks. Guidance was reiterated with operations running ahead of plan, while progress at Malartic continued with shaft expansion and plans for a second shaft that could meaningfully lift underground output. VNP advanced as the company delivered another strong quarter supported by broad-based demand growth, improved pricing, and accelerating momentum in its specialty semiconductor segment. Management raised its full-year outlook following better-than-expected results, highlighting robust order trends and continued strength in renewable and space solar markets. Investors were encouraged by capacity expansion at key facilities, increasing traction with strategic customers, and the absence of any pull-forward dynamics, which reinforced confidence that earnings momentum should carry into next year.
During the month of August, the Fund initiated positions in Enerflex (EFX), Tamarack Valley Energy (TVE), Spartan Delta (SDE), and Firan Technology Group (FTG).
EFX is a global provider of energy infrastructure solutions, specializing in natural gas compression, processing, cryogenic and water treatment systems, with operations spanning 17 countries. The company is benefiting from a strong recovery in its recurring Energy Infrastructure and After-Market Service platforms provide a stable earnings base. Rising natural gas demand, underpinned by the build-out of North American LNG capacity, positions the company well for multi-year growth. Management has expanded the U.S. contract compression fleet and strengthened the balance sheet, enabling increased shareholder returns alongside growth investments.
TVE is a junior oil and gas exploration and production company with a core operational focus on oil development in the western Canadian sedimentary basin. The company is well positioned for continued upside, supported by significant production growth from successful waterflooding initiatives that are enhancing recovery rates and extending asset life. This production profile provides visibility into sustained growth while supporting improved capital efficiency.
SDE is a Canadian energy producer with a strong asset base in the Montney and Duvernay plays. The company is benefiting from Duvernay drilling results that are outperforming expectations, driving material upside to net asset value. This operational outperformance highlights greater resource potential, improved economics, and the capacity to unlock further shareholder value.
FTG is a leading manufacturer of printed circuit boards and cockpit assemblies for the aerospace and defence markets, with facilities in Canada, the U.S., and China. The company is benefiting from strong demand across both commercial aerospace and defence, supported by expanding production rates and rising budgets. High entry barriers and reshoring trends strengthen its competitive positioning, while its existing facility footprint provides capacity for organic growth and margin expansion.
The Fund held a 6.0% 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 2025 and beyond.
1Standard performance as at August 31, 2025:
Caldwell Canadian Value Momentum Fund (Series F): 1 Year: 18.3%, 3 year: 11.2%, 5 year: 11.3%, 10 year: 10.7%, Since Inception (August 29, 2014): 9.0%.
S&P/TSX Composite Total Return Index: 1 Year: 25.9%, 3 year: 17.5%, 5 year: 15.0%, 10 Year: 10.8%, Since Inception (August 29, 2014): 8.9%.
2Actual Investments, first purchased: K 9/16/2024, AEM 4/1/2024, VNP 6/5/2025.
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.
Publication date: September 15, 2025.