October 2021 | Caldwell Canadian Value Momentum Fund Commentary

October Recap: The Caldwell Canadian Value Momentum Fund (“CVM”) gained 4.3% in October versus a gain of 5.0% for the S&P/TSX Composite Total Return Index (“Index”)1. Sector returns within the Index continued to have a wide range of outcomes. Industrials (+8.8%) was the top performing sector, driven by railways and companies expected to benefit from infrastructure spending. Energy (+8.7%) was also a strong performer, now up 53.1% year-to-date. Health Care (-6.0%), driven by cannabis stocks, continues to lag.

Top CVM performers in October were Karora Resources ("KRR" +33.5%), Baytex Energy ("BTE" +20.3%) and Nuvista Energy ("NVA" +19.3%)2.

KRR significantly out-performed other gold names in October on strong production results and continued success in its drilling program. The company is targeting to nearly double production by 2024 with growth being fully funded with internal cash flow. BTE and NVA continued to move higher with continued momentum in the Energy sector.

One stock was added to the portfolio in October: Teck Resources (TECK.B). Strong commodity prices and an inflection in free cash flow are expected to drive capital returns. The company provided a constructive outlook at its investor day in September, outlining positive fundamentals for its copper and premium hard coking coal as key inputs for the world's low-carbon transition. The QB2 project, which will double copper production by 2023, continues to de-risk as it remains on budget and on schedule for first production in the second half of 2022.

The Fund held a 22.8% 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 2021 and beyond.

1See Performance Comparison table (or page 2 of the PDF) for standard performance data.

2Actual Investments, first purchased: BTE 9/22/2021, KRR 12/3/2020, NVA 3/10/2021.

3Return since August 15, 2011 (Perf. Start Date): CVM (Series A) 11.6%, Index 8.3%. | 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 394 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: November 16, 2021.

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