November 2019 | Caldwell Canadian Value Momentum Fund Commentary

November Recap:

The Fund gained 2.7% in November versus a gain of 3.6% for the S&P/TSX Composite Total Return Index (“Index”). The Index saw broad-based strength with 9 of the 11 sectors in positive territory, which more than offset weakness in cannabis, gold, and forest product names.

Top CCVMF performers in November were Real Matters (“REAL”: +23.0%), Goeasy (“GSY”: +16.0%), and Alimentation Couche-Tard (“ATD.B”: +10.0%).

REAL moved meaningfully higher after a monster quarter in which revenue and EBITDA beat analyst expectations by 25% and 42%, respectively. The results put on display the power of the earnings model as strong mortgage activity drove revenue through the platform. Share gains validate the strength of REAL's platforms, prompting analyst upgrades as growth runway is significant.

Analysts looked past an earnings miss for GSY as credit performance and loan growth were in line to ahead of expectations. GSY is the dominant player in the non-prime Canadian lending market, where demand is strong but competition is not as intense. A debt refinancing following the earnings release was viewed positively as it further lowers GSY's cost of funding, which is a key competitive barrier.

ATD.B rallied into its earnings report on the expectation of stronger U.S. fuel margins. While same-store-sale performance was very good and initiatives are progressing well, the major news was ATD.B's bid to acquire Caltex, a leading Australian convenience and fuel retailer. Acquisitions are a key part of ATD.B's DNA and the company has done well to grow shareholder value through its acquisition strategy. The offer is currently being reviewed by Caltex's Board, but if successful, would serve as a springboard to expand the company's presence in Asia Pacific. In addition to the U.S., ATD.B sees the region as a key growth area, given its expected contribution to global growth over the next decade plus.

No stocks were added to the portfolio in November.

The Fund held a 19.7% cash weighting at month-end. The CCVMF 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

CCVMF - Caldwell Canadian Value Momentum vs Canadian Small/Mid Cap Equity vs Canadian Equity

Return since August 15, 2011 (Performance Start Date): 10.3%. | Returns are annualized for periods greater than one year. | Source: Morningstar

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 376 constituents in the Canadian Equity category and 5 of a total of 106 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: December 17, 2019.

The Lipper Fund Awards are based on the Lipper Leader for Consistent Return rating, which is a risk-adjusted performance measure calculated over 36, 60 and 120 months. Lipper Leaders fund ratings do not constitute and are not intended to constitute investment advice or an offer to sell or the solicitation of an offer to buy any security of any entity in any jurisdiction. For more information, see Lipper Leader ratings change monthly. Lipper Fund Awards from Refinitiv, ©2019 Refinitiv. All rights reserved. Used under license. The Caldwell Canadian Value Momentum Fund Series A in the Canadian Equity Category for the 5-year period (out of a total of 69 funds) ending July 31, 2019. Lipper Leader ratings: 5 (3 years) and 5 (5 years).

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 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")

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