Caldwell US Dividend Advantage Fund · CSE:UDA
Caldwell US Dividend Advantage Fund — Investor Presentation (October 2021)
26 slides from Caldwell US Dividend Advantage Fund's investor presentation, Oct 31, 2021
Slide 1: An Active Complement to Your Core Dividend Strategies
ADVISOR USE ONLY An Active Complement October 31, 2021 to Your Core Dividend Strategies
Slide 2: An Active Complement to your Core
ADVISOR USE ONLY An Active Complement to your Core Caldwell U.S. Dividend Advantage Fund “Our goal at CIM is to disrupt attractive but ‘sleepy’ investment categories through investment strategies that are Differentiated, Active, and Enduring.” Jennifer Radman, CFA Senior Portfolio Manager & Head of
Slide 3: Our Portfolio Management Team
ADVISOR USE ONLY Our Portfolio Management Team Jennifer Radman, CFA – Lead Portfolio Manager Head of Investments & Senior Portfolio Manager • Lead PM of the multi-award winning Caldwell Canadian Value Momentum fund (CVM)* Caldwell U.S. Dividend Advantage Fund • Member of 5 award-winning portfolio ma
Slide 4: Fund Overview
ADVISOR USE ONLY Fund Overview Caldwell U.S. Dividend Advantage Fund Our “Advantage” - A Distinctive “Dividend Momentum” Investment Strategy • A unique approach to dividend stocks that combines MOMENTUM Investing with an overlay of bottom-up FUNDAMENTAL analysis • Concentrated, high-conviction portf
Slide 5: Table of Contents
ADVISOR USE ONLY Table of Contents Caldwell U.S. Dividend Advantage Fund Category Landscape Strategy Overview Portfolio Snapshot 5
Slide 6: Dividend Growers: Long-Term Outperformance
ADVISOR USE ONLY Category Landscape Dividend Growers: Long-Term Outperformance Dividend Growers & Dividend Payers (No Non-Dividend Paying Initiators Change) Stocks Dividend Cutters 12% Caldwell U.S. Dividend Advantage Fund 10.4% 10% 8% 6.7% 6% 4.5% 4% 2% 0% -1.2% -2% Historical Annualized Performanc
Slide 7: Dividend Growers: Strong Performance Across Environments
ADVISOR USE ONLY Category Landscape Dividend Growers: Strong Performance Across Environments Inflationary Environments Caldwell U.S. Dividend Advantage Fund Inflation Regime Dividend Growers Unchanged Dividend Non Payers Dividend Cutters & Initiators Dividends Low (<2%) 17.0% 13.7% 13.4% 6.9% Modera
Slide 8: Dividend Growers: Higher Returns with Lower Risk
ADVISOR USE ONLY Category Landscape Dividend Growers: Higher Returns with Lower Risk Sustainable dividend growth has resulted in excess returns during volatile markets Caldwell U.S. Dividend Advantage Fund 12% 10% Dividend Growers & Initiators Average Annualized Return 8% Unchanged Dividends 6% Divi
Slide 9: Dangers with High Yielding Dividend Stocks
ADVISOR USE ONLY Category Landscape Dangers with High Yielding Dividend Stocks Investors relying on higher yielding dividends risk headwinds from secular challenges or competition from industry disruptors Caldwell U.S. Dividend Advantage Fund High Yielding Bankruptcies Disruptors 9
Slide 10: Quality Comparison: Not All Dividends Are Created Equal
ADVISOR USE ONLY Category Landscape Quality Comparison: Not All Dividends Are Created Equal Higher yields typically come at the expense of quality, profitability and financial health Caldwell U.S. Dividend Advantage Fund Dividend Growers High Yielders Economic Moat Downside Deviation of 5Y ROIC 5YR
Slide 11: Are Incumbent Dividend Strategies Too Sleepy?
ADVISOR USE ONLY Category Landscape Are Incumbent Dividend Strategies Too Sleepy? Traditional Dividend strategies exhibit a LOWER turnover approach Caldwell U.S. Dividend Advantage Fund No. of U.S. Companies Cutting U.S. Dividend Fund /Suspending Dividends Median Turnover 50 450 409 43.8% 400 37.4%
Slide 12: Table of Contents
ADVISOR USE ONLY Table of Contents Caldwell U.S. Dividend Advantage Fund Category Landscape Strategy Overview Portfolio Snapshot 12
Slide 13: 2-Stage Investment Process
ADVISOR USE ONLY Strategy Overview 2-Stage Investment Process The Discipline of Quantitative Investing + the Common Sense of Fundamental Analysis Caldwell U.S. Dividend Advantage Fund Quantitative Discovery Active Overlay Daily Proprietary Factor Screening Fundamental Analysis of Buy & Sell Candidat
Slide 14: Quantitative Discovery: Sources of Alpha
ADVISOR USE ONLY Strategy Overview Quantitative Discovery: 2 Sources of Alpha Positive Re-Rating Opportunities = Leveraging Positive Momentum Caldwell U.S. Dividend Advantage Fund Industry Consolidation Accretive Acquisitions End Market Demand Restructurings Efficiency Gains Under-Covered 14
Slide 15: Quantitative Discovery: Sources of Alpha
ADVISOR USE ONLY Strategy Overview Quantitative Discovery: 2 Sources of Alpha Recovery Opportunities = Leveraging Negative Momentum Caldwell U.S. Dividend Advantage Fund Opportunities to buy quality compounders at discounted valuations by identifying situations of temporary under-performance Tempora
Slide 16: Positive Re-Rating Investment Thesis
ADVISOR USE ONLY Strategy Overview Positive Re-Rating Investment Thesis Martin Marietta (MLM-us) Caldwell U.S. Dividend Advantage Fund The company operates 290 facilities supplying aggregates to public infrastructure, private non-residential and private residential construction end markets. It has a
Slide 17: Recovery Opportunity Investment Thesis
ADVISOR USE ONLY Strategy Overview Recovery Opportunity Investment Thesis Verisk Analytics (VRSK-us) Caldwell U.S. Dividend Advantage Fund The company is the largest provider of data and analytics solutions to the U.S. P&C insurance industry. It also provides similar services to banks and credit car
Slide 18: Table of Contents
ADVISOR USE ONLY Table of Contents Caldwell U.S. Dividend Advantage Fund Category Landscape Strategy Overview Portfolio Snapshot 18
Slide 19: Portfolio Snapshot as at October 31, 21
ADVISOR USE ONLY Portfolio Snapshot Portfolio Snapshot as at October 31, 2021 Allocation by Market Capitalization Top 10 Equity Holdings % Portfolio Caldwell U.S. Dividend Advantage Fund 18.5% Tetra Tech Inc. 5.2% Mega Cap 51.0% L3Harris Technologies Inc. 5.1% 31.3% UnitedHealth Group Inc. 5.0% Larg
Slide 20: Sector Breakdown
ADVISOR USE ONLY Portfolio Snapshot GICS* Portfolio Snapshot as at October 31, 2021 Sector Breakdown Sector % Portfolio** Index Weight Under/Over (Relative to Benchmark***) Caldwell U.S. Dividend Advantage Fund Industrials 29.7% 21.7% Information Technology 26.3% -1.6% Financials 12.3% 0.9% Consumer
Slide 21: Fund Summary
ADVISOR USE ONLY Fund Summary • A unique dividend investment strategy combining MOMENTUM investing with Caldwell U.S. Dividend Advantage Fund FUNDAMENTAL analysis • Designed to capitalize on attractive, often overlooked dividend-growth stocks with compelling positive or negative price momentum • Act
Slide 22: Purchase Details
ADVISOR USE ONLY Purchase Details Series Sales Option Management Fee Fund Code Currency A Series Front End 1.75% CWF108 CAD Caldwell U.S. Dividend Advantage Fund A Series Front End 1.75% CWF109 U.S. A Series Low Load 1.75% CWF088 CAD A Series Low Load 1.75% CWF099 U.S. F Series No Load 0.75% CWF118
Slide 23: Portfolio Management Team Bios
ADVISOR USE ONLY Portfolio Management Team Bios Focused on delivering value through differentiated, active management Caldwell U.S. Dividend Advantage Fund Jennifer Radman, CFA Head of Investments & Senior Portfolio Manager Jennifer is the lead Portfolio Manager on the Caldwell U.S. Dividend Advanta
Slide 24: Relationship Management Team
ADVISOR USE ONLY Relationship Management Team Focused on delivering exceptional Investment Advisor & client services Caldwell U.S. Dividend Advantage Fund Richard Faiella, CFA Alex Osborne, CFA Senior Vice President & Portfolio Manager Vice President, Client Portfolio Strategist & Portfolio Manager
Slide 25: Disclaimer
ADVISOR USE ONLY Disclaimer Page 1 of 2 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 conve
Slide 26: Disclaimer
ADVISOR USE ONLY Disclaimer Page 2 of 2 FundGrade A+® is used with permission from Fundata Canada Inc., all rights reserved. The annual FundGrade A+® Awards are presented by Fundata Canada Inc. to recognize the “best of the best” among Canadian investment funds. The FundGrade A+® calculation is supp
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