Caldwell US Dividend Advantage Fund · CSE:UDA
Caldwell US Dividend Advantage Fund — Caldwell Canadian Value Momentum Fund — Investor Presentation (June 2024)
33 slides from Caldwell US Dividend Advantage Fund's investor presentation, Jun 30, 2024
Slide 1: CWF701 CWF702
CWF701 CWF702 June 30, 2024 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 of June 30, 2024 YTD 1 Year 3 Year 5 Year 10 Year Since Inception* Caldwell Canadian Value Momentum Fund CVM 9.1 9.1 2.8 8.5 7.2 9.4 S&P/TSX Index2 6.1 12.1 6.0 9.3 6.9 7.5 Canadian Equity3 5.8 10.9 5.9 8.3 6.
Slide 6: Key Statistics vs S&P/TSX Composite (Since Inception)
ADVISOR USE ONLY Has the strategy Created Value? Key Statistics (Since Inception*) Statistic CVM S&P/TSX Composite Total Return Index Alpha 3.4% — Caldwell Canadian Value Momentum Fund Active Share** 84.5% — Standard Deviation 11.5 12.2 Beta 0.7 1.0 Sharpe Ratio 0.7 0.5 Sortino Ratio 1.1 0.8 Up Capt
Slide 7: Key Statistics vs S&P/TSX Small Cap (Since Inception)
ADVISOR USE ONLY Has the strategy Created Value? Key Statistics (Since Inception*) Statistic CVM S&P/TSX Small Cap Index Alpha 6.7% — Caldwell Canadian Value Momentum Fund Active Share** 84.5% — Standard Deviation 11.5 19.4 Beta 0.4 1.0 Sharpe Ratio 0.7 0.2 Sortino Ratio 1.1 0.3 Up Capture Ratio 58.
Slide 8: Category Best Downside Capture
ADVISOR USE ONLY Has the strategy Created Value? Category Best Downside Capture Since the Fund’s inception, there were 56 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 Inde
Slide 9: 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 Caldwell Canadian Value Momentum Fund 219.5% 158.9% 143.8% Value Add: +670 bps Value Add: +710 bps Value Add: +320 bps 59.2% 45.3% 46.0% 46.2% 37.8% 31.7% -2.
Slide 10: 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 $38,000 6/30/2024 $31,768 $33,000 $28,000 6/30/2024 $25,523 $23,000 6/30/2024 $18,000 $24,163 $13,000 $8,000 2011 2012 2013 2014 2015 2016 2017 2018 201
Slide 11: 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? 11
Slide 12: 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. 12
Slide 13: 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 14: 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 14
Slide 15: 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 Stantec (STN): Engineering & design consulting operators work to Boyd Group (BGSI): Collision repair centres consolida
Slide 16: 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 RB G
Slide 17: 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 Hammond Power Solutions (HPS): Engineer and industry demand, often manufacturer of electrical equipment and systems benefitting fr
Slide 18: Restructurings
ADVISOR USE ONLY Is there a Repeatable Investment Process? Restructurings Caldwell Canadian Value Momentum Fund Stock Examples Restructurings are company-specific and AtkinsRéalis (ATRL): Professional services & project often involve management management company changes and/or new Parkland Corp. (P
Slide 19: 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 RB Global (RBA): Provider of insights, services and industries coming out of transaction solutions for buyers and sellers of c
Slide 20: 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 Chartwell Retirement Residences (CSH-UN.TO): additional research Seniors’ housing provider coverage which opens up Hammond Po
Slide 21: 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 22: 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 23: 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 2024 Caldwell Canadian Value Momentum Fund S&P/TSX Composite TR Index Value 24,000 26% 19% 22,000 16% 22% 13% 20,000 22% 18,
Slide 24: 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? 24
Slide 25: Portfolio Snapshot as of June 30, 2024
ADVISOR USE ONLY Has the portfolio delivered Diversification Benefits? Portfolio Snapshot as of June 30, 2024 Portfolio Allocation by Market Capitalization Top 10 Equity Holdings % Portfolio Caldwell Canadian Value Momentum Fund AtkinsRealis Group Inc. 7.0% 34.8% Mega Cap >15B 79.1% Element Fleet Ma
Slide 26: GICS Portfolio Snapshot: Sector Breakdown
ADVISOR USE ONLY Has the portfolio delivered Diversification Benefits? GICS* Portfolio Snapshot as of June 30, 2024 Sector Breakdown Sector % Portfolio** Index Weight Under/Over (Relative to Benchmark***) Caldwell Canadian Value Momentum Fund Industrials 27.1% 13.0% Materials 19.3% 7.2% Information
Slide 27: 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 2024 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 87.9 Q2 - 95.5 96.2
Slide 28: 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 2023 Caldwell Canadian Value Momentum Fund 83% 167% 150% 81% 136% 162% 75% 214% 195% 309% 372% Top 10 – Dece
Slide 29: 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 30: 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 31: Relationship Management Team
ADVISOR USE ONLY Caldwell Canadian Value Momentum Fund Relationship Management Team Caldwell Canadian Value Momentum Fund Richard Faiella, CFA Alex Osborne, CFA Cole Cedar Senior Vice President & Portfolio Manager Vice President, Client Portfolio Strategist & Senior Inside Sales Associate Tel (offic
Slide 32: 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. 3The CVM is in the Canadian Equit
Slide 33: CWF701 CWF702
ADVISOR USE ONLY CWF701 CWF702 June 30, 2024 For important information see disclaimer on page 32.
Caldwell Canadian Value Momentum Fund — Investor Presentation (June 2024) on 6ix