Month End Recap:
For the month of July, the Caldwell U.S. Dividend Advantage Fund (UDA or Fund) declined 7.6% versus a 1.2% decline for the benchmark, the S&P 500 Total Return Index (Index)1. From a sector standpoint, Energy, Financials, and Real Estate were relative outperformers while Information Technology, Industrials and Utilities underperformed.
Top performers in the month of July were Acadian Asset Management (AAMI), Ross Stores (ROST) and Casey’s General Stores (CASY)2. AAMI is a global investment manager specializing in systematic, data-driven strategies for institutional clients. Shares gained momentum as investors continued to reward strong demand for quantitative strategies and the firm’s improving organic growth profile. Second-quarter results reinforced this view, with earnings ahead of analysts’ expectations and continued confidence in Acadian’s ability to expand across systematic equity and alternative strategies. ROST is a leading U.S. off-price retailer focused on branded apparel and home merchandise at discounted prices. Momentum was supported by consumers’ continued focus on value, a structural tailwind for off-price retailers as households remain selective with discretionary spending. The company also opened 47 stores during June and July, reinforcing its long-term runway for unit growth and market-share gains. CASY is a leading U.S. convenience-store operator with a differentiated prepared-food, fuel and grocery offering across smaller communities. Shares benefited from continued confidence in the company’s food-led growth model, store expansion strategy and resilient everyday-consumption demand. Its new three-year plan targets at least 400 additional stores while using technology and scale to improve merchandising, labour productivity and margins.
During the month of July, the Fund initiated positions in eBay (EBAY), Marathon Petroleum (MPC), JPMorgan Chase (JPM), Morgan Stanley (MS), AbbVie (ABBV), Concentra (CON), Johnson & Johnson (JNJ), Quest Diagnostics (DGX), AZZ Inc. (AZZ), CSX Corp. (CSX) and Hexcel (HXL).
EBAY operates a global online marketplace connecting buyers and sellers across general merchandise, collectibles and increasingly focused categories. The company is positioned to benefit from the structural growth of recommerce as consumers increasingly seek value, unique inventory and more sustainable ways to shop. Continued investment in authentication, advertising and technology should improve buyer engagement and monetization across the marketplace. The recently completed acquisition of Depop strengthens eBay’s position in circular fashion and adds a highly engaged Gen Z and Millennial customer base, expanding its long-term growth opportunity in resale.
MPC is one of the largest U.S. refiners and fuel marketers, with additional exposure to midstream infrastructure through MPLX. The company benefits from structurally constrained North American refining capacity and durable demand for transportation fuels, which support attractive through-cycle margins for efficient operators. Its scale, integrated logistics network and ongoing yield-enhancement investments should help sustain strong free cash flow. Significant cash generation also supports an attractive combination of reinvestment, share repurchases and dividends.
JPM is the largest U.S. bank, with leading franchises across consumer banking, payments, commercial banking, markets, investment banking and wealth management. Its scale and diversified revenue base allow the company to gain share through economic cycles while funding technology investment at levels smaller competitors cannot easily match. A healthier capital-markets backdrop should support investment banking and trading, while continued growth in deposits, cards and wealth management adds recurring earnings power. The combination of strong returns on capital, a fortress balance sheet and multiple secular growth engines supports long-term compounding.
MS is a global financial-services firm with leading wealth management, investment banking and institutional securities franchises. The long-term thesis is increasingly driven by wealth management, where rising household wealth and the migration of assets toward fee-based advice create a durable pool of recurring revenue. Its workplace and stock-plan businesses give Morgan Stanley privileged access to newly created wealth from technology companies and public-market activity. A recovery in capital markets provides additional upside through investment banking and trading while the growing wealth platform should reduce earnings cyclicality over time.
ABBV is a global biopharmaceutical company with leading positions in immunology, neuroscience and aesthetics. The company has successfully replaced much of the earnings lost from Humira through rapid growth in Skyrizi and Rinvoq, which remain early in their global penetration curves. Its neuroscience portfolio adds a second major growth engine, while a deep pipeline and targeted acquisitions can extend growth across multiple therapeutic areas. This diversified portfolio supports durable earnings growth and an attractive dividend profile over the long term.
CON is the largest provider of occupational health services in the United States, operating clinics, onsite health centers and telemedicine services for employers. Demand is supported by the recurring need for workplace injury care, physicals, drug testing and other employer-mandated services that are relatively insensitive to economic cycles. The highly fragmented market provides a long runway for new centers and bolt-on acquisitions, while Concentra’s national scale strengthens relationships with large employers. Organic volume growth, pricing and consolidation should support steady revenue and margin expansion over time.
JNJ is a diversified healthcare leader operating across innovative medicines and medical technology. Aging populations and rising global healthcare utilization provide durable demand across oncology, immunology, cardiovascular care, surgery and other high-value categories. The company’s scale in research and development, broad pipeline and strong balance sheet allow it to continuously replenish its portfolio through internal innovation and acquisitions. A balanced mix of pharmaceuticals and medical devices supports resilient cash flow and long-term dividend growth.
DGX is one of the largest U.S. diagnostic laboratory companies, providing testing services to physicians, hospitals, employers and consumers. Long-term growth is supported by aging demographics, increasing chronic disease prevalence and the expanding role of diagnostics in earlier disease detection and personalized care. Consumer-directed testing and advanced diagnostics create incremental growth opportunities beyond the traditional physician-referral model. Quest’s national network and scale should also support continued productivity gains and consolidation of the fragmented laboratory market.
AZZ is a leading North American provider of hot-dip galvanizing and coil-coating solutions used across infrastructure, construction and industrial markets. The company is positioned to benefit from sustained investment in U.S. infrastructure, grid modernization and domestic manufacturing, all of which require durable coated steel products. Galvanizing extends the useful life of critical infrastructure and provides a recurring value proposition as replacement and maintenance spending rises. Capacity additions and bolt-on acquisitions should allow AZZ to capture more of this structurally growing demand.
CSX is a major eastern U.S. freight railroad serving industrial, consumer, agricultural and intermodal markets. Rail should continue gaining share over time as shippers seek lower-cost and more fuel-efficient transportation for long-haul freight. Growth in domestic manufacturing, infrastructure investment and intermodal traffic provides a durable volume backdrop, while network density creates significant barriers to entry. Continued operating efficiency and pricing discipline should translate modest volume growth into attractive earnings and free cash flow growth.
HXL is a global leader in advanced carbon-fiber and composite materials used primarily in commercial aerospace, defense and space applications. The company is leveraged to a multi-year recovery in aircraft production as Airbus and Boeing increase build rates to address large backlogs. Lightweight composites also continue to gain content per aircraft because they improve fuel efficiency, range and structural performance. Rising production volumes on major widebody and narrowbody platforms should drive strong operating leverage and free cash flow over the coming years.
The Fund held a 1.6% 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 July 31, 2026:
Caldwell U.S. Dividend Advantage Fund (Series F): 1 Year: 18.8%, 3 year: 12.3%, 5 year: 8.5%, 10 year: 9.3%, Since Inception (June 19, 2015): 9.1%.
S&P500 Total Return Index: 1 Year: 21.3%, 3 year: 21.9%, 5 year: 15.5%, 10 year: 15.9%, Since Inception (June 19, 2015): 15.4%.
2 Actual investments, first purchased: AAMI 5/5/2026, ROST 6/4/2026, CASY 6/4/2026.
All data is as of July 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: August 21, 2026.