Month End Recap:
For the month of June, the Caldwell Canadian Value Momentum Fund (CVM or Fund) gained 1.1% versus a gain of 2.9% for the S&P/TSX Composite Total Return Index (Index)1. From a sector standpoint, Healthcare, Information Technology, and Materials were relative outperformers, whereas Consumer Staples, Utilities, and Industrials underperformed.
Top performers in the month of June were Cameco (CCO), Sprott (SII), and AtkinsRéalis (ATRL)2. CCO rerated higher as uranium prices continued to rise amid tightening supply and strong nuclear energy demand. The favourable backdrop supported stronger pricing across its long-term contracts, boosting earnings visibility and investor confidence. Progress on production ramp-ups and execution of strategic growth plans also contributed to the stock’s performance. SII has been performing well since its recent earnings release. The company delivered strong results with solid profit margins and healthy asset growth, supported by renewed interest in precious metals and uranium. Positive investment flows and management’s constructive outlook further boosted investor confidence, contributing to the stock’s continued upward momentum. ATRL continued its strong performance following its earnings release as investors responded positively to strong results and an improved outlook, particularly in the nuclear segment, which delivered standout growth and continues to benefit from long-term industry tailwinds like electrification and decarbonization. Management raised its multi-year expectations for this segment, highlighting sustained demand momentum. The company also reported robust backlog growth and solid execution across core operations, reinforcing confidence in its strategy and margin trajectory.
During the month of June, the Fund initiated positions in Major Drilling Group International (MDI), iA Financial Corporation (IAG), NuVista Energy (NVA), Athabasca Oil (ATH), and CAE Inc. (CAE).
MDI is a global leader in specialized drilling services for the mining industry, focused on mineral exploration. Operating across six continents, it supports mining clients with a broad range of drilling solutions including surface and underground coring. It offers attractive exposure to rising global exploration activity, particularly in gold and copper. With a specialized fleet, global footprint, and increasing demand from senior and intermediate miners, it is well-positioned for growth.
IAG is one of Canada’s largest insurance and wealth management companies, offering a broad range of financial products including life and health insurance, group benefits, wealth management, and retirement solutions. The company is seeing momentum across its core Canadian insurance and wealth businesses, while its U.S. dealer services segment has turned the corner, benefiting from operational improvements and new client wins. With ample excess capital and improving operating leverage, it is poised to enhance earnings growth through both organic initiatives and potential U.S. acquisitions.
NVA is a Canadian oil and natural gas producer focused on the condensate-rich Montney formation in Alberta. The company operates primarily in the Wapiti and Pipestone areas, where it maintains high working interests and infrastructure ownership. It provides attractive natural gas exposure and consistent production growth outlook of approximately 5% annually over the next five years. Furthermore, its robust balance sheet and improving capital efficiency support continued reinvestment and shareholder returns.
ATH is an oil and gas producer involved in the development of heavy and light oil resources in Alberta. The company has been performing well operationally, with strong volumes at its Hangingstone and Leismer projects and a disciplined approach to capital returns. Management remains focused on enhancing business sustainability through stable operations, active share buybacks, and maintaining a net cash position, which provides flexibility in a volatile macro environment.
CAE is a global leader in simulation and training solutions for the civil aviation and defence markets, specializing in the design and production of flight simulation systems for commercial and military applications. With the largest installed base of full-flight simulators and training devices worldwide, the company also provides comprehensive training services to enhance pilot proficiency and mission readiness. The recovery in aircraft deliveries should drive increased demand for civil aviation training, while an improving defence contract mix is expected to enhance margins as low-margin legacy contracts are phased out.
For the second quarter of 2025, CVM gained 7.0% versus a gain of 8.5% for the Index. Top contributors to the performance were Lundin Gold (LUG), AtkinsRéalis (ATRL), and Kinross Gold (K)3. LUG rerated higher, assisted by a constructive move in the price of gold, providing the company with a supportive environment to operate in. ATRL was also a top performer in the month of June and was already discussed in the monthly section above. K rerated higher, aided by a constructive move in the price of gold, which provides a favourable backdrop for the company to continue generating strong free cash flow and further deleveraging its balance sheet.
The Fund held a 7.9% 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 2025 and beyond.
1Standard performance as at June 30, 2025:
Caldwell Canadian Value Momentum Fund (Series F): 1 Year: 15.8%, 3 year: 10.6%, 5 year: 11.1%, 10 year: 10.0%, Since Inception (August 29, 2014): 8.7%.
S&P/TSX Composite Total Return Index: 1 Year: 26.4%, 3 year: 16.1%, 5 year: 15.0%, 10 Year: 9.6%, Since Inception (August 29, 2014): 8.4%.
2Actual Investments, first purchased: CCO 11/18/2024, SII 4/16/2025, ATRL 5/27/2024.
3Actual Investments, first purchased: LUG 4/8/2025, ATRL 5/27/2024, K 9/16/2024.
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: July 18, 2025.