Month End Recap:
For the month of February, the Caldwell U.S. Dividend Advantage Fund (UDA or Fund) outperformed its benchmark, the S&P 500 Total Return Index (Index), by 7.5%, with a return of 7.5% versus a decline of 0.0% on the Index1. From a sector standpoint, Utilities, Energy, and Materials were relative outperformers, whereas Consumer Discretionary, Communication Services and Information Technology underperformed.
Top performers in the month of February were Agnico Eagle Mines (AEM), Comfort Systems USA (FIX), and Howmet Aerospace (HWM)2. AEM continued to rerate higher as strong gold prices and improving fundamentals supported a constructive outlook for earnings and cash flow growth. The company also outlined a visible long-term production growth pipeline, targeting 20–30% output expansion through the early 2030s as major projects advance. Combined with a strong balance sheet, rising free cash flow, and increasing capital returns through dividends and buybacks, sentiment strengthened around the durability of growth and shareholder returns. FIX maintained its momentum as it reported strong momentum across its construction, service, and modular businesses, supported by record backlog and broad demand from industrial and technology customers. The modular segment remained capacity-constrained with its 3 million square feet effectively sold out, reinforcing visibility into 2026. Recent acquisitions added meaningful revenue and earnings contributions beginning in the fourth quarter of 2025, while service revenue continued to grow at a double-digit pace. With a robust opportunity pipeline, ongoing workforce expansion, and continued investment in automation and capacity, the company started the year with reinforced confidence in its growth outlook. HWM gained momentum as strong demand across commercial aerospace and defense markets supported accelerating revenue growth and expanding margins. Quarterly results highlighted robust operating leverage, with strong incremental margins and rising free cash flow as aerospace production rates and aftermarket activity improved. With earnings revisions moving higher and improving visibility into growth from aerospace build rate increases, gas turbine demand, and potential M&A synergies, sentiment strengthened around the durability of earnings growth and returns.
During the month of February, the Fund initiated positions in Williams Companies (WMB), Archrock (AROC), and Ovintiv (OVV).
WMB operates one of the largest natural gas infrastructure networks in North America, including the Transco pipeline system, transporting and processing natural gas across key U.S. supply and demand corridors. The company is benefiting from a strong backlog of accretive growth projects supported by rising power demand from data centers and AI infrastructure, as well as growing LNG export capacity. These tailwinds are driving expanding project backlogs across transmission and power development, with sanctioned projects and existing operations supporting roughly 8–10% EBITDA growth through 2030. With strong visibility into project execution and accelerating demand for natural gas infrastructure, its growth outlook continues to strengthen.
AROC provides contract compression services and equipment supporting natural gas production across major U.S. basins. The company is benefiting from strong underlying demand for natural gas driven by expanding LNG export capacity and rising domestic power consumption, which is supporting high compression utilization and improving pricing. With its fleet operating near full utilization and continued expansion of higher horsepower compression units, the company is well positioned to capture sustained demand growth while generating rising cash flow and shareholder returns.
OVV is a North American Exploration and Production (E&P) company with core positions in the Permian Basin, Montney, and Anadarko plays. The company is expected to benefit from significant synergies following the NuVista acquisition, with integration and operational best practices driving improved capital efficiency and production growth across its asset base. With strong execution across the Permian and Montney and a deep inventory of high-quality drilling locations, it is positioned to generate durable free cash flow while continuing to strengthen its balance sheet and return capital to shareholders.
The Fund held an 8.0% 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.
1All 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 February 28, 2026:
Caldwell U.S. Dividend Advantage Fund (Series F): 1 Year: 1 Year: 9.9%, 3 year: 12.6%, 5 year: 10.3%, 10 year: 10.2%, Since Inception (June 19, 2015): 9.2%.
S&P500 Total Return Index: 1 Year: 10.8%, 3 year: 21.9%, 5 year: 15.9%, 10 year: 15.6%, Since Inception (June 19, 2015): 14.8%.
2Actual investments, first purchased: AEM 4/21/2025, FIX 5/1/2025, HWM 11/6/2025.
All data is as of February 28, 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: March 13, 2026.