Month End Recap:
For the month of July, the Caldwell Canadian Value Momentum Fund (CVM or Fund) declined 4.2% versus a return of 1.2% for the S&P/TSX Composite Total Return Index (Index)1. From a sector standpoint, Energy, Health Care and Consumer Staples were top performers (reversing lasts month’s underperformance) while Information Technology, Industrials and Utilities underperformed.
Top performers in the month of July were Mullen Group (MTL), Manulife Financial (MFC) and Tamarack Valley Energy (TVE)2. MTL is a diversified Canadian transportation and logistics company with less-than-truckload (LTL), logistics, warehousing and specialized industrial operations. Shares gained momentum as improving freight conditions raised expectations that the multi-year trucking downturn is beginning to normalize, supporting better pricing and asset utilization. Strong Q2 results reinforced the thesis, with record quarterly financial performance and a higher 2026 capital budget signaling management confidence in an improving demand outlook. MFC is a global life insurer and wealth manager with significant operations across Canada, the U.S. and Asia. Momentum was supported by continued strength in Asian insurance and wealth demand, where rising household wealth and low insurance penetration provide a durable growth runway. In July, Manulife also expanded its Microsoft partnership to scale artificial intelligence across the organization, supporting the potential for improved productivity and customer engagement. TVE is a Canadian oil producer focused on the Clearwater play in Alberta. Shares benefited from the company’s transition to a pure-play Clearwater producer, an asset base characterized by low capital intensity, shallow declines and a long drilling inventory that supports durable free cash flow. Strong Q2 operating results and an enhanced dividend further reinforced confidence in the company’s ability to translate resource quality into growing shareholder returns.
During the month of July, the Fund initiated positions in Cenovus Energy (CVE), Linamar (LNR), Ovintiv (OVV) and Bank of Montreal (BMO).
CVE is a large integrated Canadian energy producer with substantial oil sands and refining operations. Its long-life, low-decline oil sands assets provide durable production and free cash flow with relatively modest sustaining capital requirements. The acquisition of MEG Energy adds scale and potential operating synergies, while the integrated refining network provides diversification across commodity cycles. Strong cash generation should support continued deleveraging, and higher shareholder returns over time.
LNR is a diversified advanced manufacturer serving automotive, industrial, agricultural and infrastructure end markets. The company is positioned to benefit from rising vehicle complexity and the shift toward electrified and more efficient powertrains, which require increasingly sophisticated components and manufacturing solutions. Its industrial businesses add exposure to long-term themes including agricultural mechanization, infrastructure investment and construction productivity. A diversified platform, strong free cash flow and disciplined capital allocation provide multiple avenues for long-term earnings growth.
OVV is a North American oil and natural gas producer focused on the Permian and Montney basins. The company is leveraged to structurally growing North American energy demand, particularly natural gas consumption from liquefied natural gas exports, power generation and data-centre growth. A deep inventory of high-return drilling locations supports efficient production and free cash flow growth across commodity cycles. Strong operational execution and disciplined shareholder returns should allow more of that resource value to accrue to investors over time.
BMO is a diversified North American bank with major Canadian and U.S. commercial banking, wealth management and capital markets businesses. The long-term thesis is supported by secular growth in commercial banking, wealth creation, payments and capital markets activity across North America. Improving credit trends and better execution in the U.S. franchise provide a path to stronger profitability and returns on equity. Continued investment in technology and artificial intelligence should also improve efficiency and deepen customer relationships over time.
The Fund held a 3.3% 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 July 31, 2026:
Caldwell Canadian Value Momentum Fund (Series F): 1 Year: 45.5%, 3 year: 22.4%, 5 year: 13.5%, 10 year: 12.8%, Since Inception (August 29, 2014): 11.4%.
S&P/TSX Composite Total Return Index: 1 Year: 32.3%, 3 year: 22.9%, 5 year: 14.9%, 10 Year: 12.5%, Since Inception (August 29, 2014): 10.3%.
2Actual Investments, first purchased: MTL 4/27/2026, MFC 3/21/2024, TVE 8/6/2025.
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: August 21, 2026.