September 2021 | Caldwell Canadian Value Momentum Fund Commentary

September Recap: The Caldwell Canadian Value Momentum Fund (“CVM”) gained 0.1% in September versus -2.2% for the S&P/TSX Composite Total Return Index (“Index”)1. Sector returns within the Index continued to have a wide range of outcomes. Energy (+8.7%) was the only sector to post a positive return while Technology (-9.4%), Gold (-9.7%) and Health Care (-10.4%) were the worst performers.

Top CVM performers in September were NuVista Energy ("NVA" +42.0%), Tourmaline ("TOU" +33.9%) and Advantage Energy ("AAV" +21.9%)2. All are gas-weighted producers and so benefited from the strength in natural gas prices (+32.9%), which outpaced gains in WTI crude oil (+10.2%).

Five stocks were added to the portfolio in September: West Fraser Timber ("WFG"), Airboss ("BOS"), Tricon Residential ("TCN"), Nuvei Corporation ("NVEI"), and Baytex Energy ("BTE"). WFG was repurchased as lumber and OSB prices seem to have found a floor following announced production curtailments across the industry. BOS continues to have a deep pipeline of opportunities within its AirBoss Defense and Rubber Solutions groups while M&A provides additional upside potential. TCN is seeing robust demand for its single family housing rentals, which are strategically positioned across the U.S. sunbelt and are benefiting from demographic trends. The company is seeing strong interest in the 'single family home' asset class from institutional investors, which is creating an incremental revenue stream for the company, and a recent U.S. listing should open up a new investor base and create incremental demand for shares. NVEI is enjoying above-market growth for its payment technology solutions, driven by a-la-carte solutions designed specifically for higher growth e-commerce customers.

Despite 40%+ organic growth, the company continues to make acquisitions to further its leadership position and expand into new geographies. BTE is an oil-weighted producer with positive drilling results coming out of its Clearwater play. The company has grown Clearwater production from zero at the start of 2021 and is seeing some of the highest well rates across the entire play. As with many energy producers, cash flow generation is significant at current commodity pricing.

The Fund held a 24.7% 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: AAV 7/22/2021, NVA 3/10/2021, TOU 6/11/2021.

3Return since August 15, 2011 (Perf. Start Date): CVM (Series A) 11.2%, Index 7.4%. | 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 392 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.

The Refinitiv 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 lipperfundawards.com. The CVM in the Canadian Equity Category for the 5-year period (out of a total of 74 funds) ending 7/31/2020 with corresponding Lipper Leader ratings of 4 (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 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: October 18, 2021.

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