| March 2017 | 1 Year | 3 Year | 5 Year | Since Inception* | |
|---|---|---|---|---|---|
| Caldwell CDN Value Momentum Fund "CCVMF" | 3.6% | 16.5% | 7.4% | 12.1% | 11.6% |
| S&P/TSX Composite Total Return Index | 1.3% | 18.6% | 5.8% | 7.8% | 6.8% |
*Compounded Annual Return since August 15, 2011.
March Recap:
Accredited Investors Only
The Fund gained 3.6% in March versus a gain of 1.3% for the S&P/TSX Composite Total Return Index ("Index").
Top CCVMF performers in March were Transcontinental (+21.5%), Premium Brands (+20.6%) and ZCL Composites (+13.0%), all of which moved higher on strong earnings results and positive outlooks. Transcontinental is making good progress on its initiative to diversify into packaging and gave a positive outlook with plans for double digit organic growth and opportunities for additional acquisitions. The company’s core printing business also showed resiliency with a service agreement renewal with Rona and a new agreement with Lowe’s. These multi-year agreements demonstrate that flyers continue to be a valued marketing tool for retailers. Premium Brands saw an uptick in organic growth and additional margin expansion. The company also gave a positive outlook that suggests its strategy in the specialized food manufacturing and distribution has much more room to run. Lastly, ZCL announced a special dividend of 65 cents (this works out to an ~8.6% annualized yield) and a 50% increase to its dividend. The company has made great progress over the last several years of improving margins and profitability and demand for its petroleum tanks continues to be robust on the back of new construction and replacement demand.
Celestica (CLS) was added to the portfolio in March. We know this story very well given it has been a long time holding in the Caldwell Balanced Fund. Despite the stock nearly doubling the TSX Index return over the last twelve months, we see continued upside in the name. The company has now posted 5 straight quarters of top line growth and sees continued organic growth opportunity, particularly in its diversified/industrials segment as industrials manufacturing is still largely in-sourced. We expect margins to continue to grind higher and the company has hinted at additional acquisitions to build up its diversified offering. Meanwhile, shares continue to trade at a substantial discount to the market and its peer group.
The Fund held a 14% cash weighting at month end. We look forward to tracking the progress of the portfolio’s holdings as we see a meaningful and diverse set of catalysts to drive continued growth.
We thank you for your continued support.
The CCVMF Team
The Fund is available on a private placement basis only to residents of Canada who are qualified “Accredited Investors” as defined under National Instrument 45-106 Prospectus Exemptions and who are resident in Canada. This material is for information purposes only and does not constitute an offering memorandum or an offer or solicitation in any jurisdiction in which an offer or solicitation is not authorized.
Please read the Fund’s Offering Memorandum before investing. Prospective investors should rely solely on the Offering Memorandum which outlines the risk factors in making a decision to invest.
The indicated rates of return are historical annual compounded total returns net of fees and expenses paid by the Fund, including changes in unit value and reinvestment of all distributions, but do not take into account sales charges or income taxes payable by any securityholder that would have reduced returns. Investments in the Fund are not guaranteed, their values change frequently and past performance may not be repeated. Investment losses do and may occur, and investors could lose some or all of their investment in the Fund.
The information herein does not consider the specific investment objectives, financial situation or particular needs of any prospective investor. No assurance can be given that the Fund’s investment objective will be achieved or that investors will meet their investment goals. Prospective investors should consult their appropriate advisors prior to investing. Information presented herein is obtained from sources we believe reliable, but we assume no responsibility for information provided to us from third parties. Caldwell Securities Ltd. and Caldwell Investment Management Ltd. are wholly-owned subsidiaries of Caldwell Financial Ltd. Officers, directors and employees of Caldwell Financial Ltd. and its subsidiaries may have positions in the securities mentioned herein and may make purchases and/or sales from time to time.
This information may not be reproduced for any purpose or provided to others in whole or in part without the prior written permission of Caldwell Investment Management Ltd. All information and opinions indicated herein are subject to change without notice. Inception date: August 15, 2011.
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