Caldwell US Dividend Advantage Fund · CSE:UDA
Caldwell US Dividend Advantage Fund — Caldwell Canadian Value Momentum Fund — Investor Presentation (June 2023)
34 slides from Caldwell US Dividend Advantage Fund's investor presentation, Jun 30, 2023
Slide 1: Caldwell Canadian Value Momentum Fund – June 30, 2023
June 30, 2023 Effective November 19, 2021, the Fund is closed to new investments, except for purchases from certain types of investors. For important information see disclaimer on page 33. ADVISOR USE ONLY
Slide 2: A Highly Differentiated Investment Strategy
ADVISOR USE ONLY Fund Overview A Highly Differentiated Investment Strategy Caldwell Canadian Value Momentum Fund (“CVM”) seeks to invest Caldwell Canadian Value Momentum Fund in stocks undergoing a positive re-rating by the market, usually as a result of company-specific catalysts. This means: • The
Slide 3: Key Fund Attributes
ADVISOR USE ONLY Fund Overview Key Fund Attributes Actively managed, high conviction/concentrated stock portfolio Caldwell Canadian Value Momentum Fund Portfolio skewed towards small and mid-cap companies Performance ranks in the top quartile over 10 years among all Funds in the CIFSC Canadian Equit
Slide 4: Table of Contents
ADVISOR USE ONLY Table of Contents Caldwell Canadian Value Momentum Fund Has the strategy Created Value? Is there a Repeatable Investment Process? Does the portfolio deliver Diversification Benefits? 4
Slide 5: Historical Performance
ADVISOR USE ONLY Has the strategy Created Value? Historical Performance Net Returns (%) as at June 30, 2023 Caldwell Canadian Value Momentum Fund YTD 1 Year 3 Year 5 Year 10 Year Since Inception* CVM 4.3 6.0 9.6 6.7 9.2 9.4 S&P/TSX 5.7 10.4 12.4 7.6 8.4 7.2 Index** Peer 5.5 10.1 12.7 6.5 7.6 6.8 Gro
Slide 6: Key Statistics (10 Years Ending June 30, 2023)
ADVISOR USE ONLY Has the strategy Created Value? Key Statistics (10 Years Ending June 30, 2023) Statistic Description CVM S&P/TSX Caldwell Canadian Value Momentum Fund Alpha Risk adjusted return over benchmark (higher is better) 2.4% — Active Share* Share of portfolio different from the index 92.3%
Slide 7: Category Best Down Capture
ADVISOR USE ONLY Has the strategy Created Value? Category Best Down Capture Since the Fund’s inception, there were 51 months in which the S&P/TSX Composite Total Return Index posted a decline. Caldwell Canadian Value Momentum Fund Of those*: (Since Inception Series A) • CVM outperformed the Index 76
Slide 8: A History of Adding Value in Up and Down Markets
ADVISOR USE ONLY Has the strategy Created Value? A History of Adding Value in Up and Down Markets Cumulative Returnsǂ Over Up and Down Cycles 191.6% Caldwell Canadian Value Momentum Fund 123.1% 111.7% Value Add: +670 bps Value Add: +710 bps 59.2% Value Add: +300 bps Value Add: +320 bps 45.3% 46.0% 4
Slide 9: Significant Value Creation
ADVISOR USE ONLY Has the strategy Created Value? Significant Value Creation Growth of $10,000 Since Inception Caldwell Canadian Value Momentum Fund $33,000 6/30/2023 $29,157 $28,000 6/30/2023 $22,309 $23,000 $18,000 6/30/2023 $21,173 $13,000 $8,000 Caldwell Canadian Value Momentum Fund S&P/TSX Compo
Slide 10: Conclusion
ADVISOR USE ONLY Conclusion Caldwell Canadian Value Momentum Fund Has the strategy Created Value? Is there a Repeatable Investment Process? Does the portfolio deliver Diversification Benefits? 10
Slide 11: Factors + Fundamentals
ADVISOR USE ONLY Is there a Repeatable Investment Process? Factors + Fundamentals Caldwell Canadian Value Momentum Fund The CVM marries the discipline of quantitative, factor investing with the common sense, fundamental analysis of a portfolio manager. 11
Slide 12: 2-Stage Investment Process
ADVISOR USE ONLY Is there a Repeatable Investment Process? 2-Stage Investment Process Quantitative Discovery Active Overlay Caldwell Canadian Value Momentum Fund Daily Proprietary Factor Screening Fundamental Analysis of Buy & Sell Candidates • Management Quality Canadian Investment Universe • Balan
Slide 13: Key Catalysts Driving Positive Re-Ratings
ADVISOR USE ONLY Is there a Repeatable Investment Process? Key Catalysts Driving Positive Re-Ratings Caldwell Canadian Value Momentum Fund Industry Consolidation Accretive Acquisitions End Market Demand Restructurings Efficiency Gains Under-Covered 13
Slide 14: Industry Consolidation
ADVISOR USE ONLY Is there a Repeatable Investment Process? Industry Consolidation Caldwell Canadian Value Momentum Fund Stock Examples These are classic roll-up stories where strong Firstservice (FSV): Residential property management operators work to Stantec (STN): Engineering & design consulting c
Slide 15: Accretive Acquisitions
ADVISOR USE ONLY Is there a Repeatable Investment Process? Accretive Acquisitions Caldwell Canadian Value Momentum Fund Stock Examples Similar to classic roll-ups, these companies add CCL Industries (CCL.B): Label converters for the packaging value through acquisitions industry that enhance the TFI
Slide 16: End Market Demand
ADVISOR USE ONLY Is there a Repeatable Investment Process? End Market Demand Caldwell Canadian Value Momentum Fund Stock Examples These companies are experiencing strong Premium Brands (PBH): Specialty foods & food distribution industry demand, often Aritzia (ATZ): Apparel & fashion retail benefitti
Slide 17: Restructurings
ADVISOR USE ONLY Is there a Repeatable Investment Process? Restructurings Caldwell Canadian Value Momentum Fund Stock Examples Restructurings are company-specific and Ag Growth International (AFN): Agricultural equipment provider often involve management Element Fleet Management (EFN): Fleet managem
Slide 18: Efficiency Gains
ADVISOR USE ONLY Is there a Repeatable Investment Process? Efficiency Gains Caldwell Canadian Value Momentum Fund Stock Examples Efficiency gains cover companies in cyclical Ag Growth International (AFN): Agricultural equipment industries coming out of Stelco (STLC): Steel producer cyclical bottoms.
Slide 19: Under-Covered Companies
ADVISOR USE ONLY Is there a Repeatable Investment Process? Under – Covered Companies Caldwell Canadian Value Momentum Fund Stock Examples These companies are expected to gain Calian Group (CGY): Diversified business groups additional research Cargojet (CJT): Overnight air cargo services coverage whi
Slide 20: Portfolio Construction
ADVISOR USE ONLY Is there a Repeatable Investment Process? Portfolio Construction Attractive catalysts to Caldwell Canadian Value Momentum Fund unlock shareholder value The end result is a high active-share portfolio that moves independent of Concentrated, market risk. High-Conviction Portfolio of 1
Slide 21: Risk Management
ADVISOR USE ONLY Is there a Repeatable Investment Process? Risk Management Risk is explicitly managed and embedded into the investment process Caldwell Canadian Value Momentum Fund Quantitative buy & sell signals reviewed daily Bottom-up fundamental overlay Low correlation to market returns Discipli
Slide 22: Moving to Cash When Necessary
ADVISOR USE ONLY Is there a Repeatable Investment Process? Moving to Cash When Necessary CVM Historical Cash Positions Held in Advance of Market Downturns January 2018 to June 2023 Caldwell Canadian Value Momentum Fund S&P/TSX Composite TR Index Value 24,000 19% 26% 22,000 16% 20,000 22% 18,000 11%
Slide 23: Conclusion
ADVISOR USE ONLY Conclusion Caldwell Canadian Value Momentum Fund Has the strategy Created Value? Is there a Repeatable Investment Process? Does the portfolio deliver Diversification Benefits? 23
Slide 24: Portfolio Snapshot as at June 30, 2023
ADVISOR USE ONLY Has the portfolio delivered Diversification Benefits? Portfolio Snapshot as at June 30, 2023 Portfolio Allocation by Market Capitalization Top 10 Equity Holdings % Portfolio Caldwell Canadian Value Momentum Fund Stantec Inc. 7.1% 78.2% Mega Cap >15B 33.2% Element Fleet Management Co
Slide 25: GICS Portfolio Snapshot: Sector Breakdown
ADVISOR USE ONLY Has the portfolio delivered Diversification Benefits? GICS* Portfolio Snapshot as at June 30, 2023 Sector Breakdown Sector % Portfolio** Index Weight Under/Over (Relative to Benchmark***) Caldwell Canadian Value Momentum Fund Industrials 28.0% 14.3% Financials 13.2% -17.5% Consumer
Slide 26: High Active Share
ADVISOR USE ONLY Has the portfolio delivered Diversification Benefits? High Active Share Active Share %* Caldwell Canadian Value Momentum Fund 2011** 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Q1 - 95.5 96.7 94.2 96.1 97.3 98.3 98.2 96.0 91.6 95.8 94.1 92.5 Q2 - 95.5 96.2 98.3 98.0
Slide 27: An Actively Managed Portfolio: Active Stock Selection
ADVISOR USE ONLY Has the portfolio delivered Diversification Benefits? An Actively Managed Portfolio: Active Stock Selection Annual Turnover* 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Caldwell Canadian Value Momentum Fund 83% 167% 150% 81% 136% 162% 75% 214% 195% 309% Top 10 – December 31, 2
Slide 28: Conclusion
ADVISOR USE ONLY Conclusion Caldwell Canadian Value Momentum Fund Has the strategy Created Value? Is there a Repeatable Investment Process? Does the portfolio deliver Diversification Benefits? 28
Slide 29: Good investment strategies surprise to the upside
Caldwell Canadian Value Momentum Fund ADVISOR USE ONLY There’s a saying that good management teams surprise to the upside. The same is true for good investment strategies. So make the change today! Has the strategy Created Value? Is there a Repeatable Investment Process? Does the portfolio deliver D
Slide 30: Purchase Details
ADVISOR USE ONLY Caldwell Canadian Value Momentum Fund Purchase Details Caldwell Canadian Value Momentum Fund Series Management Fee* Fund Code A Series (Traditional Brokerage) 1.0% CWF701 F Series (Fee Based Accounts) 0.5% CWF702 • $500 minimum purchase with $100 subsequent investments; $50 if on mo
Slide 31: Management Team
ADVISOR USE ONLY Caldwell Canadian Value Momentum Fund Management Team Caldwell Canadian Value Momentum Fund Jennifer Radman, CFA Denis Taillefer, CFA William Chin, MBA Justin Elliott, CFA Raheel Younas Head of Investments & Senior Portfolio Manager Portfolio Manager & Portfolio Manager Equity Analy
Slide 32: Sales Team
ADVISOR USE ONLY Caldwell Canadian Value Momentum Fund Sales Team Richard Faiella, CFA Senior Vice President & Portfolio Manager Caldwell Canadian Value Momentum Fund Tel: 416.593.0353, ext. 242 or 1.800.256.2441, ext. 242 rfaiella@caldwellinvestment.com Alex Osborne, CFA Vice President, Client Port
Slide 33: Disclaimer
ADVISOR USE ONLY Disclaimer The Fund was not a reporting issuer offering its securities privately from August 8, 2011 until July 20, 2017, at which time it became a reporting issuer and subject to additional regulatory requirements and expenses associated therewith. ***The CVM is in the Canadian Equ
Slide 34: CWF701, CWF711, CWF702
CWF701, CWF711 CWF702 For important information see disclaimer on page 33.
Caldwell Canadian Value Momentum Fund — Investor Presentation (June 2023) on 6ix