Month End Recap:
For the month of August, the Caldwell U.S. Dividend Advantage Fund (UDA or Fund) declined 3.5% versus a 1.5% gain for the benchmark, the S&P 500 Total Return Index (Index)1. From a sector standpoint, Energy, Information Technology and Materials were the best performers while Utilities, Industrials and Real Estate were the worst performers.
Top performers in the month of August were Marathon Petroleum (MPC), Interactive Brokers Group (IBKR) and Acadian Asset Management (AAMI)2. MPC is the largest U.S. refining operator and also owns a controlling interest in midstream company MPLX. Shares moved higher after second-quarter results highlighted a sharp recovery in refining profitability, with higher crack spreads driving strong margins and cash generation. Structurally constrained North American refining capacity, resilient transportation-fuel demand and continued growth at MPLX support durable free cash flow and shareholder returns. IBKR operates a highly automated global electronic brokerage platform for individual and institutional investors. Shares benefited from elevated market activity and continued migration toward low-cost electronic trading, which are driving strong growth in customer accounts, trading volumes and client balances. August operating metrics subsequently showed client accounts and equity up 35% year over year while trading activity remained well above prior-year levels, reinforcing the scalability of the platform. AAMI is a global investment manager specializing in systematic, data-driven investment strategies for institutional clients. Momentum continued following strong second-quarter results, including $4.3 billion of net inflows, record assets under management of $232.7 billion and significant growth in recurring management fees. Strong long-term investment performance and growing institutional adoption of systematic strategies continue to support organic asset growth and meaningful operating leverage.
During the month of August, the Fund initiated positions in Amphenol (APH) and Targa Resources (TRGP).
APH is a global leader in connectors, sensors and high-speed interconnect systems used across data centers, communications, aerospace, defense and transportation markets. Rapid growth in artificial intelligence infrastructure is increasing the need for higher-speed, higher-density electrical and optical connectivity, providing a powerful secular demand driver for Amphenol’s content. The company also benefits from broad exposure to defense, commercial aerospace and industrial electrification, reducing dependence on any single end market. Strong organic growth, a highly decentralized operating model and disciplined acquisitions provide multiple avenues for sustained earnings compounding.
TRGP is a leading North American midstream company with a large natural gas and natural gas liquids gathering, processing, transportation and export network. Rising Permian production and growing domestic and global demand for natural gas liquids create a long runway for throughput growth across its integrated system. Targa’s ability to move volumes from the wellhead through fractionation and export infrastructure allows it to capture economics across the full value chain while generating largely fee-based cash flows. Recent 20-year agreements with ExxonMobil and plans for three additional Permian processing plants further improve visibility into long-term volume and EBITDA growth.
The Fund held a 10% 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. Over the long run, given its unique momentum-driven investment approach and focus on well-managed, dividend growth companies, we believe UDA is well-positioned to provide strong performance by way of both attractive regular monthly distributions and long-term capital appreciation potential. We expect that our approach to dividend growth investing should continue to provide a means of generating compelling risk-adjusted returns for our investors over the long term.
1 All returns (for the fund, individual stocks and sectors) are in total return, Canadian dollar terms. All stock returns represent performance for the full period noted. All fund returns are in respect of Series F.
Standard performance as at August 31, 2026:
Caldwell U.S. Dividend Advantage Fund (Series F): 1 Year: 16.4%, 3 year: 10.3%, 5 year: 7.3%, 10 year: 8.8%, Since Inception (June 19, 2015): 8.7%.
S&P500 Total Return Index: 1 Year: 21.6%, 3 year: 22.0%, 5 year: 14.9%, 10 year: 16.0%, Since Inception (June 19, 2015): 15.4%.
2 Actual investments, first purchased: MPC 7/15/2026, IBKR 4/10/2025, AAMI 5/5/2026.
All data is as of August 31, 2026 sourced from Morningstar Direct or S&P Capital IQ, unless otherwise indicated. Fund returns are from FundData. UDA, Index total return numbers, sector returns and individual stocks returns are in CAD terms. The Fund was first offered to the public as a closed-end investment since May 28, 2015. Effective November 15, 2018 the Fund was converted into an open-end mutual fund such that all units held were redesignated as Series F units. Performance prior to the conversion date would have differed had the Fund been subject to the same investment restrictions and practices of the current open-end mutual fund.
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 payment of distributions should not be confused with a fund’s performance, rate of return or yield. If distributions paid are greater than the performance of the fund, your original investment will shrink. Distributions paid as a result of capital gains realized by a fund, and income and dividends earned by a fund, are taxable in your hands in the year they are paid. Your adjusted cost base (“ACB”) will be reduced by the amount of any returns of capital and should your ACB fall below zero, you will have to pay capital gains tax on the amount below zero.
Publication date: September 10, 2026.