February 2019 | Caldwell Canadian Value Momentum Fund Commentary

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

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")