The Caldwell Canadian Value Momentum Fund (“CVM”) gained 0.2%1 in February versus a gain of 0.3% for the S&P/TSX Composite Total Return Index (“Index”). Sector returns within the Index varied widely, highlighted by a 31 percentage point return difference between the top and bottom performing sector.
Top performers in the Fund were Karora Resources ("KRR", +30.9%), Teck Resources ("TECK", +16.3%) and Nutrien ("NTR", +22.8%)2.
All three companies benefited from continued momentum in energy prices which reached levels not seen since 2014. NVA released an operational update with better than expected production volumes while strong financial performance and a positive outlook led TOU to increase its regular dividend and announce a one-time special dividend.
Two stocks were added to the portfolio in February: Gildan ("GIL") and Nutrien ("NTR"). Positive drivers at GIL include accelerating demand as economies reopen, constrained industry supply, market share gains given an advantaged supply chain versus peers and a significantly improved cost structure following a restructuring program. Positive agricultural market fundamentals led NTR to release 2022 guidance well above analysts’ expectations with potential room for further production upside if sanctions on a major Belarus potash producer prove to be long lasting.
The Fund held a 26% cash weighting at month-end. The CVM 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 2022 and beyond.
The Fund held a 23% cash weighting at month-end. The 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 2022 and beyond.
1See page 2 for standard performance data.
2Actual Investments, first purchased: KRR 12/3/2020 , NTR 11/18/2021, TECK 10/12/2021.
3Return since August 15, 2011 (Perf. Start Date): CVM (Series A) 11.2%, Index 8.2%. | Returns are annualized for periods greater than one year.
4Categories defined by Canadian Investment Funds Standards Committee (“CIFSC”).
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.
As the constituents in the CIFSC Canadian Equity category largely focus on securities of a larger capitalization and CVM considers, and is invested, in all categories, including smaller and micro-cap securities, we have also shown how CVM ranks against constituents focused in the smaller cap category. The above list represents 6 of a total of 399 constituents in the CIFSC Canadian 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.
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: March 10, 2022