Month End Recap:
For the month of August, the Caldwell Canadian Value Momentum Fund (CVM or Fund) declined 3.2% versus a gain of 3.1% for the S&P/TSX Composite Total Return Index (Index)1. From a sector standpoint, Materials, Information Technology and Communication Services were the best performers while Health Care, Consumer Staples and Utilities were the worst performers.
Top performers in the month of August were Hudbay Minerals (HBM), Major Drilling Group International (MDI) and Sprott (SII)2. HBM is a diversified copper and gold producer with operating assets in Canada and Peru. Shares benefited from the sharp August rally in copper and gold, supported by rising power and infrastructure requirements tied to electrification and artificial intelligence alongside constrained new mine supply. Strong second-quarter results, improved cash-cost guidance and continued free cash flow generation reinforced the company’s leverage to higher metals prices. MDI is the world’s largest specialized drilling-services provider to the mining industry. Elevated gold and copper prices continue to support larger exploration budgets from senior miners and improved financing conditions for junior miners, driving a broader recovery in drilling activity. Record fiscal 2026 revenue and accelerating activity across Canada and the U.S. reinforced expectations that the mining exploration cycle remains in an upswing. SII is an alternative asset manager specializing in precious metals and critical-materials investment products. Shares rose alongside strong gains in gold and silver during August, which support both investor demand and assets under management across Sprott’s exchange-listed products. Higher average assets and continued net inflows have also translated into strong operating leverage, with adjusted EBITDA doubling in the second quarter.
During the month of August, the Fund initiated positions in Air Canada (AC), K92 Mining (KNT) and SSR Mining (SSRM).
AC is Canada’s largest airline, operating a global passenger network alongside a large loyalty and cargo platform. Long-term demand remains supported by continued growth in international travel, premium traffic and corporate travel, where Air Canada benefits from its leading Canadian hub network and international connectivity. Fleet renewal and a richer mix of premium products should improve unit economics and customer experience over time. Strong cash generation also provides flexibility to reduce leverage, repurchase shares and reinvest in the network.
KNT operates the high-grade Kainantu gold-copper mine in Papua New Guinea. The company is entering a transformational growth phase as its Stage 3 expansion materially increases processing capacity and production from a resource base that continues to grow through exploration. Record ore processing in the second quarter and continued expansion ramp-up progress provide tangible evidence that the larger-scale operation is taking shape. Higher gold and copper prices further improve the economics of this long-life growth project and support strong future free cash flow potential.
SSRM is an Americas-focused gold and silver producer with long-lived operations in the United States and Canada. The company has completed a strategic refocus toward the Americas, leaving it with approximately $1.8 billion of cash, no long-term debt and substantial capacity to fund organic growth and shareholder returns. Brownfield projects across Marigold, CC&V and Seabee provide multiple avenues to extend mine lives and improve the production profile. A structurally supportive gold-price environment should amplify free cash flow while the company continues an aggressive buyback and dividend program.
The Fund held a 2.7% 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 2026 and beyond.
1Standard performance as at August 31, 2026:
Caldwell Canadian Value Momentum Fund (Series F): 1 Year: 36.3%, 3 year: 21.4%, 5 year: 12.7%, 10 year: 12.0%, Since Inception (August 29, 2014): 11.0%.
S&P/TSX Composite Total Return Index: 1 Year: 29.9%, 3 year: 24.8%, 5 year: 15.3%, 10 Year: 12.8%, Since Inception (August 29, 2014): 10.5%.
2Actual Investments, first purchased: HBM 6/5/2026, MDI 6/27/2025, SII 4/16/2025.
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 10, 2026.