Month End Recap:
For the month of March, the Caldwell U.S. Dividend Advantage Fund (UDA or Fund) declined -5.0% versus a decline of -2.8% for the S&P 500 Total Return Index (Index)1. From a sector standpoint Energy, Utilities, and Financials were relative outperformers, whereas Industrials, Healthcare, and Consumer Staples underperformed.
Top performers in the month of March were Ovintiv (OVV), TJX Companies (TJX), and Lam Research (LRCX)2. OVV gained ground as stronger free cash flow and improved capital returns reinforced confidence in the reshaped portfolio. The company further concentrated the business around two higher-quality core assets, improving operating focus and balance sheet flexibility. Management also introduced a more shareholder-friendly return framework centered on buybacks, supported by a sizable new authorization and lower net debt than previously targeted. With portfolio high-grading largely complete and visibility improving around capital efficiency, free cash flow, and shareholder returns, sentiment strengthened around the company’s medium-term value creation potential. TJX continued to rerate higher as quarterly results again showed stronger-than-expected comparable sales and margin performance across banners. Growth was supported by both traffic and basket size, while merchandise margins improved on strong branded inventory availability, lower shrink, and better expense leverage. Although near-term guidance came in below expectations, investors viewed it as conservative against a backdrop of strong current trends and a favorable off-price buying environment. With the value proposition continuing to resonate across income groups and the company still taking share from traditional retailers, confidence remained high in the durability of growth and earnings. LRCX performed well as results and guidance reinforced confidence in a stronger semiconductor equipment cycle. Demand was supported by rising investment in advanced AI-related memory and packaging, alongside continued foundry and logic spending, while services also came in stronger than expected. Management pointed to robust 2026 industry spending with demand constrained more by available cleanroom capacity than by end-market weakness, supporting the view that the upcycle still has room to run.
During the month of March, the Fund initiated positions in Vertiv Holdings (VRT), HCA Healthcare (HCA), and Lam Research (LRCX).
VRT is a leading provider of critical digital infrastructure used to power, cool, and support data centres and communications networks. The company is benefiting from accelerating demand tied to AI infrastructure buildout, with monumental bookings and sharply higher backlog providing strong revenue visibility into future periods. Its scale, engineering capabilities, and growing capacity investments are helping it win share as customers race to deploy increasingly power-dense compute environments. With demand continuing to outpace prior expectations and margin expansion supported by pricing and operating leverage, it remains well positioned for sustained high-growth execution.
HCA is the largest U.S. hospital operator, with a broad network of acute care hospitals and outpatient sites across key markets. The company continues to take share across its markets, supported by strong local positioning, broad service offerings, and disciplined execution across the care continuum. At the same time, ongoing asset optimization and throughput initiatives are improving capacity utilization, operational efficiency, and margin resilience. With a multi-year resiliency program and growing use of technology and AI to support productivity, it remains well positioned for durable growth and earnings improvement.
LRCX is a leading supplier of wafer fabrication equipment and services, with strong positions in deposition, etch, and clean technologies across memory and logic. The company is benefiting from accelerating semiconductor capital spending driven by AI, particularly in high-bandwidth memory, advanced packaging, and increasingly complex 3D architectures where its technology is highly differentiated. It is also continuing to gain share within wafer fab equipment, supported by rising process intensity at advanced nodes and strong positioning in its key growth areas.
For the first quarter of 2026, UDA outperformed its benchmark by 7.7%, with a return of 5.1% versus a decline of -2.6% on the Index. Top contributors to the performance were Comfort Systems USA (FIX), Ovintiv (OVV), and Agnico Eagle Mines (AEM). 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. OVV was also among the top performers in March and was previously discussed in the monthly section above. 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.
The Fund held a 7.6% 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 March 31, 2026:
Caldwell U.S. Dividend Advantage Fund (Series F): 1 Year: 13.1%, 3 year: 10.1%, 5 year: 8.3%, 10 year: 9.1%, Since Inception (June 19, 2015): 8.6%.
S&P500 Total Return Index: 1 Year: 14.2%, 3 year: 19.5%, 5 year: 14.4%, 10 year: 15.0%, Since Inception (June 19, 2015): 14.3%.
2Actual investments, first purchased: OVV 2/6/2026, TJX 4/21/2025, LRCX 3/25/2026.
All data is as of March 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: April 14, 2026.