Month End Recap:
For the month of June, the Caldwell U.S. Dividend Advantage Fund (UDA or Fund) gained 1.9% versus a gain of 4.3% for the S&P 500 Total Return Index (Index)1. From a sector standpoint, Information Technology, Communication Services, and Energy were relative outperformers, whereas Consumer Staples, Real Estate, and Utilities underperformed.
Top performers in the month of June were Broadcom (AVGO), Vertiv Holdings (VRT), and Quanta Services (PWR)2. AVGO sustained its strong performance from the prior month, driven by a series of positive catalysts including a $10 billion share buyback signaling management confidence, a sharp rebound from tariff-related declines after the Trump administration announced a pause on new tariffs, advancements in its AI-powered cybersecurity offerings, and easing trade war fears. VRT continued to move higher after the company raised its revenue guidance, driven by strong demand from AI-related data center buildouts. Orders for cooling and power systems surged as infrastructure needs from major tech players accelerated, reinforcing investor confidence and solidifying the company’s position as a key supplier in the rapidly expanding AI ecosystem. PWR continued to perform well after having delivered robust earnings, raised its full-year guidance, and reported a record $35 billion backlog, signaling sustained growth momentum. Strong demand across power generation, energy storage, and high-voltage transmission continues to support its outlook, while management’s confident handling of tariff risks and proactive supply chain measures further reinforced investor confidence in execution and resilience.
During the month of June, the Fund initiated a position in Darden Restaurants (DRI). DRI is the largest full-service restaurant operator in North America, with a portfolio of well-known brands including Olive Garden, LongHorn Steakhouse, The Capital Grille, and Ruth’s Chris Steak House. The company focuses on delivering consistent guest experiences and operational efficiency, leveraging its scale and brand strength to drive steady growth across a broad dining segment. Its new partnership with Uber is progressing well, expanding its off-premises reach. With relatively low exposure to the lower-end consumer and pricing power still available, the company is well-positioned to drive margin expansion and capture incremental growth in a resilient demand environment.
Top performers in the second quarter of 2025 were Broadcom (AVGO), Quanta Services (PWR), and Vertiv Holdings (VRT). Each of these holdings were also the top performers in the month of June and were already discussed in the monthly section above.
The Fund held an 11.6% 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.
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 June 30, 2025:
Caldwell U.S. Dividend Advantage Fund (Series F): 1 Year: -6.7%, 3 year: 7.9%, 5 year: 8.0%, 10 year: 7.9%, Since Inception (June 19, 2015): 7.7%.
S&P500 Total Return Index: 1 Year: 14.4%, 3 year: 22.0%, 5 year: 16.7%, 10 year: 14.7%, Since Inception (June 19, 2015): 14.5%.
2Actual investments, first purchased: AVGO 11/15/2022, VRT 5/1/2025, PWR 4/10/2025.
All data is as of June 30, 2025 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: July 18, 2025.