Month End Recap:
For the month of September, the Caldwell Canadian Value Momentum Fund (CVM or Fund) gained 7.2% versus a gain of 5.4% for the S&P/TSX Composite Total Return Index (Index)1. From a sector standpoint, Materials, Energy, and Financials were relative outperformers, whereas Communication Services, Real Estate, and Industrials underperformed.
Top performers in the month of September were Kinross Gold (K), Agnico Eagle Mines (AEM), and Sprott (SII)2. K sustained its momentum as its quarterly results highlighted record free cash flow, accelerating shareholder returns, and stronger-than-expected operating performance. Production exceeded forecasts while costs came in lower, driving record margins. The company reduced net debt close to zero and resumed a sizable buyback program, reinforcing balance sheet strength. Management reiterated full-year guidance with performance tracking ahead of targets, while investors were encouraged by the potential for continued execution. AEM continued to rerate higher after the company reported record results supported by stronger production, lower costs, and robust free cash flow. Management highlighted improved margins and rising cash generation, which drove debt reduction, a shift to a net cash position, and the resumption of share buybacks. Guidance was reiterated with operations running ahead of plan, while progress at Malartic continued with shaft expansion and plans for a second shaft that could meaningfully lift underground output. SII advanced as rising gold, silver, and uranium prices drove AUM growth across its three largest physical trusts, boosting management fees and earnings visibility. Strong investor demand for precious metals and critical materials supported accelerating net flows, while the company’s scalable, capital-lite business model continued to deliver high incremental margins. Expanding Exchange-Traded Fund (ETF) traction and growing expectations for enhanced capital returns further reinforced confidence in its long-term growth outlook.
During the month of September, the Fund initiated positions in Alamos Gold (AGI) and Electrovaya (ELVA).
AGI is a Canadian-based intermediate gold producer operating three mines in North America. A cost inflection is underway, supported by structural benefits from the Magino ramp-up and improved ore routing at Island, driving margin expansion and cash flow improvement. In addition, projected growth developments, including the Lynn Lake project and continued optimization initiatives, position the company for sustained production growth, enhanced operational capacity, and long-term value creation. ELVA is a Canadian-based lithium-ion battery manufacturer serving the industrial vehicle and energy storage markets. Strong industrial application demand for its high-performance batteries, new product launches into additional verticals expanding its total addressable market, and the build-out of U.S.-based manufacturing with minimal tariff exposure position the company for sustained growth and margin expansion.
EFX is a global provider of energy infrastructure solutions, specializing in natural gas compression, processing, cryogenic and water treatment systems, with operations spanning 17 countries. The company is benefiting from a strong recovery in its Engineered Systems segment, supported by improved bookings and healthy margins, while its recurring Energy Infrastructure and After-Market Service platforms provide a stable earnings base. Rising natural gas demand, underpinned by the build-out of North American LNG capacity, positions the company well for multi-year growth. Management has expanded the U.S. contract compression fleet and strengthened the balance sheet, enabling increased shareholder returns alongside growth investments.
For the third quarter of 2025, CVM gained 12.0% versus a gain of 12.5% for the Index. Top contributors to the performance were Kinross Gold (K), Agnico Eagle Mines (AEM), and 5N Plus (VNP)3. K and AEM were also the top performers in the month of September and were already discussed in the monthly section above. VNP performed well as the company delivered another strong quarter supported by broad-based demand growth, improved pricing, and accelerating momentum in its specialty semiconductor segment. Management raised its full-year outlook following better-than-expected results, highlighting robust order trends and continued strength in renewable and space solar markets. Investors were encouraged by capacity expansion at key facilities, increasing traction with strategic customers, and the absence of any pull-forward dynamics, which reinforced confidence that earnings momentum should carry into next year.
The Fund held a 0.9% 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 September 30, 2025:
Caldwell Canadian Value Momentum Fund (Series F): 1 Year: 25.8%, 3 year: 15.5%, 5 year: 13.1%, 10 year: 11.6%, Since Inception (August 29, 2014): 9.6%.
S&P/TSX Composite Total Return Index: 1 Year: 28.6%, 3 year: 21.3%, 5 year: 16.7%, 10 Year: 11.8%, Since Inception (August 29, 2014): 9.3%.
2Actual Investments, first purchased: K 9/16/2024, AEM 4/1/2024, SII 4/16/2025.
3Actual Investments, first purchased: K 9/16/2024, AEM 4/1/2024, VNP 6/5/2025.
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: October 20, 2025.