Month End Recap:
For the month of September, the Caldwell U.S. Dividend Advantage Fund (UDA or Fund) gained 2.6% versus a gain of 3.0% for the S&P 500 Total Return Index (Index)1. From a sector standpoint Information Technology, Healthcare, and Consumer Discretionary were relative outperformers, whereas Materials, Financials, and Real Estate underperformed.
Top performers in the month of October were Vertiv Holdings (VRT), Comfort Systems USA (FIX), and Broadcom (AVGO)2. VRT performed well as it delivered strong quarterly results and record demand for its power and cooling systems used in AI and cloud data centers. Orders rose sharply, supported by a 1.4x book-to-bill and a backlog that expanded to $9.5 billion, reflecting broad growth across large-scale data center projects. Revenue and earnings outpaced expectations, helped by better pricing, operating leverage, and improving profitability in key regions. The company also raised full-year guidance across sales, margins, and free cash flow, supported by continued momentum in its global pipeline and consistent backlog conversion timelines. FIX rerated 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 capacityconstrained 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, 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 entered the final months of the year with reinforced confidence in its growth outlook. AVGO continued its momentum since delivering strong results, supported by rapid growth in its AI semiconductor business and expanding demand across cloud and hyperscale customers. AI-related revenue continued to scale quickly, helped by increased adoption of custom accelerators and networking products, while the broader semiconductor portfolio showed signs of stabilization. The company highlighted a sizable, multi-year backlog and the addition of a major new AI customer, reinforcing confidence in forward visibility and strengthening sentiment around long-term growth prospects. Its infrastructure software segment remained resilient with growing subscription adoption, providing a steady earnings base. With demand accelerating across AI compute and high-performance networking, and with product ramps extending into next year, the company entered the final stretch of the year with increasing confidence in sustained growth and cash-flow generation.
During the month of October, the Fund initiated positions in KLA Corp. (KLAC), Quanta Services (PWR), Curtiss-Wright (CW), and Rollins (ROL).
KLAC is a leading supplier of semiconductor manufacturing equipment, specializing in process control and yield-management systems that enhance chip output and reduce production costs. It continues to benefit from accelerating AI-driven complexity, where larger die sizes and rising defect sensitivity are increasing the need for advanced inspection across leading-edge nodes. Customers are showing greater urgency to secure tool capacity, supported by constructive spending trends in both foundry/logic and memory. With additional momentum from advanced packaging, where inspection intensity continues to expand, the company is well positioned to sustain outperformance within the broader wafer fabrication equipment market and support long-term growth.
PWR is a leading North American infrastructure specialty contractor, offering a broad range of services—including engineering, construction, installation, maintenance, and upgrades— across utility transmission and distribution, renewable energy, and communications sectors. The company continues to benefit from robust demand in power generation, energy storage, and high-voltage transmission, which supports strong visibility into multi-year growth. Management’s effective navigation of tariff risks and proactive supply chain strategies reinforces confidence in execution and operational resilience. With accelerating tailwinds from AI-driven data center and grid modernization needs, it is well placed to sustain elevated activity levels.
CW is a diversified industrial technology company serving defense, aerospace, and nuclear end markets with mission-critical components, control systems, and engineered solutions. The company is benefiting from strong demand tailwinds across these sectors, supported by rising defense modernization needs, increased aerospace production rates, and sustained investment in nuclear power infrastructure. This combination provides a resilient growth backdrop with high visibility into future programs and expanding opportunities across its portfolio.
ROL is a leading provider of pest management services with a durable, recurring revenue model and a long history of disciplined expansion. It continues to benefit from a consistent rollup growth strategy, where frequent tuck-in acquisitions broaden its geographic footprint and service capabilities. These transactions provide meaningful earnings accretion, supported by strong integration execution and the scalability of its operating platform. With a steady pipeline of M&A opportunities and a resilient end-market, the company is well poised to sustain growth.
The Fund held a 13.6% 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 October 31, 2025:
Caldwell U.S. Dividend Advantage Fund (Series F): 1 Year: 1.9%, 3 year: 7.8%, 5 year: 10.5%, 10 year: 9.6%, Since Inception (June 19, 2015): 8.8%.
S&P500 Total Return Index: 1 Year: 22.1%, 3 year: 23.8%, 5 year: 18.8%, 10 year: 15.4%, Since Inception (June 19, 2015): 15.5%.
2Actual investments, first purchased: VRT 5/1/2025, FIX 5/1/2025, AVGO 11/15/2022.
All data is as of October 31, 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: November 20, 2025.