Month End Recap:
For the month of January, the Caldwell U.S. Dividend Advantage Fund (UDA or Fund) gained 3.0% versus a gain of 0.2% for the S&P 500 Total Return Index (Index)1. From a sector standpoint, Energy, Materials, and Consumer Staples were relative outperformers, whereas Financials, Information Technology, and Healthcare underperformed.
Top performers in the month of January were Comfort Systems USA (FIX), Interactive Brokers Group (IBKR), and Curtiss-Wright (CW)2. FIX continued to rerate higher 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. IBKR moved higher as fourth-quarter results exceeded expectations, reinforcing confidence in the company’s durable growth profile. Trading activity remained strong, driving higher commissions, while normalization in securities lending and continued margin loan growth supported earnings momentum. Net interest margins held up better than feared, helped by favorable yields on customer balances, and operating expenses came in below expectations, driving operating leverage. With client activity, account growth, and cash generation remaining robust, investor confidence in the sustainability of earnings growth improved. CW did well as expectations built around accelerating defense and commercial nuclear demand, supported by rising U.S. and NATO defense spending and increasing momentum in nuclear power and Small Modular Reactors (SMR) related projects. With visibility improving across aerospace, defense electronics, and power markets, sentiment strengthened around the durability of the company’s growth.
During the month of January, the Fund initiated positions in Alphabet (GOOGL), Amphenol (APH), Nvidia (NVDA), Federal Signal (FSS), Woodward (WWD), and Texas Roadhouse (TXRH).
GOOGL is a global technology platform with leading positions across search, digital advertising, cloud computing, and AI. The company is benefiting from accelerating Google Cloud commitments, driven by rising enterprise AI adoption and increasing demand for scalable infrastructure, which is improving revenue visibility and mix. At the same time, continued integration of AI across Search, YouTube, and Cloud is reinforcing competitive advantages and supporting operating leverage.
APH is a leading manufacturer of interconnect, sensor, and antenna solutions serving a wide range of end markets. The company is seeing margin improvement from the integration of recent acquisitions, supported by operational synergies and mix benefits. At the same time, accelerating data-center demand, driven by rising hyperscaler capital spending, is boosting volumes across high-speed connectivity and power products. Together, these drivers support improving profitability and a constructive growth outlook.
NVDA is the leading provider of accelerated computing platforms powering artificial intelligence, data centers, and high-performance computing workloads. The company continues to benefit from insatiable demand for AI compute, supported by hyperscaler, enterprise, and sovereign investment, with its latest architectures reinforcing performance leadership across training and inference. A full-stack platform spanning Graphics Processing Units (GPU), networking, systems, and software is driving strong customer lock-in and pricing power, while improving mix supports durable margin strength. With deep visibility into multi-year AI infrastructure buildouts and continued product cycle momentum, it remains a core beneficiary of the secular AI investment cycle.
FSS designs and manufactures mission-critical products and integrated solutions for municipal, governmental, industrial, and commercial customers through its Environmental Solutions and Safety and Security Systems segments. The company is exposed to durable, essential end markets supported by healthy municipal budgets and recurring demand for environmental and public safety equipment. Organic growth is supported by innovation, pricing, and share gains, while disciplined M&A is expanding the addressable market and creating new margin opportunities.
WWD designs and manufactures control solutions for aerospace and industrial applications, with a core focus on fuel, air, combustion, and motion control systems. The company is benefiting from robust content growth on next-generation commercial aircraft engines, driving durable above-market growth across both original equipment and aftermarket channels. Significant content uplift on next generation narrowbody and widebody platforms, combined with strong pricing power and rising repair volumes on legacy engines, is supporting sustained aftermarket growth. Furthermore, margin expansion is being driven by higher automation, repricing of legacy contracts, and a favorable mix shift toward higher-margin aftermarket revenue.
TXRH is a leading full-service restaurant operator best known for its value-focused steakhouse concept, supported by a highly disciplined operating model. The company continues to deliver best-in-class same-store sales, driven by strong value and quality perceptions, an incentivized managing partner structure, and consistent execution at the store level. Ongoing operational initiatives, including digital kitchen and guest management systems, are enhancing throughput and the guest experience, while easing beef cost pressures improve margin visibility. With a resilient consumer value proposition and a track record of traffic outperformance, it is well positioned to sustain durable growth.
The Fund held a 3.1% 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 January 31, 2026:
Caldwell U.S. Dividend Advantage Fund (Series F): 1 Year: -2.9%, 3 year: 10.0%, 5 year: 9.0%, 10 year: 9.6%, Since Inception (June 19, 2015): 8.5%.
S&P500 Total Return Index: 1 Year: 8.8%, 3 year: 21.7%, 5 year: 16.3%, 10 year: 15.1%, Since Inception (June 19, 2015): 14.9%.
2Actual investments, first purchased: FIX 5/1/2025, IBKR 4/10/2025, CW 10/9/2025.
All data is as of January 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: February 19, 2026.