Mutual Funds
The Caldwell Family of Funds consists of five mutual funds, managed by our own team of Portfolio Managers. The funds are available in all provinces except Quebec. Units are eligible for RRSP, RIP, RESP, LIF, LRIF, and LIRA.
The Caldwell Family of Funds provides the investing public with access to the services and expertise of a professional investment manager, which would not otherwise be readily available to them. These funds were created to allow investors to diversify their investments across a broader array of holders than is normally possible with individual securities.
Balanced Asset Management
Bond and Income
- Caldwell Income Fund
- Caldwell High Income Equity Fund
- Caldwell Institutional Bond Pool (Canadian Accredited Investors Only) CWT400
Equity Growth
- Caldwell Global Financial Services Fund
- Caldwell Meisels Canada Fund
- Caldwell Institutional Equity Pool (Canadian Accredited Investors Only) CWT300
Exchange Focused
- Caldwell Growth Opportunities Trust (Canadian Accredited Investors Only) CWT100
- Caldwell Advantage Opportunity, LP (U.S. Investors Only)
- Caldwell International Advantage Fund (International Investors Only)
- Urbana Corporation
Voting Proxy Information
Caldwell Balanced Fund
This fund was established September 25, 1990. Units can be purchased on a deferred sales charge basis (CWF001) or on a front-load basis (CWF101).
Investment Strategies
The Fund seeks to achieve its investment objectives by having regard to portfolio managers' strategic economic views. With those views as a base, country and sector selection are then emphasized. Specifically, larger positions are built in those sectors most likely to drive the economics of Canada and the United States, respectively. Individual securities are purchased based on industry knowledge, technical analysis and management interviews which lead to an assessment of the ability of a stock or unit trust to perform as well as well or better than the sector as a whole.
Under normal market conditions, this Fund holds between 30-50% of its investments in fixed income securities. These include cash, Canadian and Provincial Government bonds, guarantees and money market instruments. These are owned to stabilize returns and to provide a regular income to the Fund.
The Fund derives most of its growth from its holdings in equities, primarily senior corporations.
The term to maturity will vary between very short-term investment and ten years. When interest rates are rising, we endeavour to own shorter maturities in order to take advantage of rising rates. In a declining interest rate environment, we will seek to lock up higher rates by investing in longer bonds.
The Fund may use specified derivatives, such as options, futures and forward contracts, to:
- Hedge against losses associated with rising interest rates, equities and investments in indices,
- Gain exposure to fixed income instruments without actually investing in them directly (when owning the derivative investment is less costly than owning the fixed income instrument itself),
- Minimize the risk of currency fluctuations, and enhance income.
The Fund holds money market instruments or cash to meet its obligations under the derivatives contracts.
Up to 10% of the Fund may be invested in companies which we believe represent exceptional growth opportunities, but may be outside our normal parameters.
This Fund is a qualified investment for RRSPs and other registered plans. The Fund usually holds shares of foreign, primarily American, companies. We believe that having a percentage invested outside of Canada will help to reduce our clients' risk and improve their returns.
Caldwell Income Fund
This fund was established June 27, 1997. Units can be purchased on a deferred sales charge basis (CWF003) or on a front-load basis (CWF103).
Investment Strategies
The Fund is focused on owning income producing investments. The large majority of these are Canadian federal and provincial bonds, guarantees and money market instruments.
The terms to maturity will vary between very short-term investments and bonds that mature in 5 to 10 years. When interest rates are rising, our managers endeavour to own shorter maturities to take advantage of higher rates. In a declining interest rate environment, we will seek to lock up better rates by investing in longer bonds. From time to time the Fund may invest a portion of its assets in other income producing vehicles that our team believes will enhance the Fund's overall return and cash flow. These may include corporate bonds, convertible bonds, income and royalty trusts, dividend paying common shares and other income oriented securities.
The Fund holds the majority of its investments in Canadian securities and it is a qualified investment for RRSPs and other registered plans.
Caldwell Meisels Canada Fund
Investment Objectives
The fundamental investment objective of the Fund is to provide long-term capital growth with a high degree of reliability by investing primarily in the common shares of a diversified group of Canadian companies.
The investment objective of the Fund may only be changed with the approval of unit holders at a meeting called for that purpose.
Investment Strategies
The Fund seeks to achieve its investment objective by investing primarily in securities selected from a pool of the 100 largest Canadian companies, as measured by their market capitalization, and based on positive share price momentum. The holdings in the fund are largely based on the research of our research provider, Ron Meisels, president of Phases & Cycles Inc., of Montreal. Mr. Meisels is a leading Canadian technical analyst.
The Portfolio Manager may also, from time-to-time, and subject to applicable law, invest in exchange traded funds to take advantage of long-term rising and falling trends in the equity markets. The Fund Manager may also, on occasion, use derivatives such as options, futures and forward contracts to:
- hedge against losses associated with rising interest rates, equities and investments in indices;
- gain exposure to fixed income instruments without actually investing in them directly;
- minimize the risk of currency fluctuations;
- enhance income.
Caldwell Global Financial Services Fund
Formerly the Caldwell Exchange Fund, this fund was established July 4, 2006. Units can be a purchase on a deferred sales charge basis (CWF005) or on a front-load basis (CWF105).
Management Report of Fund Performance-June 2010
Management Report of Fund Performance-December 2010
BNN: Portfolio Manager, Jennifer Radman, discusses recent stock picks.
Investment Strategies
The Fund seeks to achieve its fundamental investment objective by participating in the growth of national or regional economies by investing in the common shares or other equity securities exchanges, financial services companies and derivatives exchanges, located in Canada, the United States and around the world.
The Fund will invest primarily in the common shares of publicly traded securities exchanges. However, where possible, the Fund will also acquire interests in an exchange prior to its conversion from a private, not-for-profit entity into a public company, in order to benefit from the increase in value that historically results from these conversions.
In general, the Manager will focus on securities exchanges that generate profits through new listing fees, ongoing listing fees, trading fees, data and proprietary products.
While the Fund will focus primarily on the securities exchanges of developed countries, the Fund will also invest in securities exchanges of developing countries that are located in regions with the fastest growing economies and that are transitioning from private to publicly listed companies.
The Fund is a qualified investment for RRSPs and other registered plans.
Caldwell High Income Equity Fund
Investment Objectives
The fundamental investment objective of the Fund is to generate a high level of income and long-term capital growth by investing in equity and fixed income securities according to market conditions. The Fund seeks to generate income by investing primarily in high yielding income producing equity and income trust securities of issuers with a market capitalization which ranges from $50 million to over $5 billion.
The investment objective of the Fund may only be changed with the approval of unitholders at a meeting called for that purpose.
Investment Strategies
Equity investments will include primarily common shares, preferred shares and income trust securities of global issuers.
Fixed income securities may include primarily high yield bonds, debentures, notes, convertible bonds, payment-inkind bonds, discounted debt instruments, restructured debt securities, loan assignments, loan participations, high yield lower rated debt securities and foreign government fixed income securities. The Fund may also invest in debt securities of distressed issuers or issuers involved in a corporate reorganization.
The term to maturity will vary between very short-term investment and ten years. When interest rates are rising, we endeavour to own shorter maturities in order to take advantage of rising rates. In a declining interest rate environment, we will seek to lock up higher rates by investing in longer bonds.
The investment strategies that the Fund will use to achieve its investment objective will include:
- investing in income trusts and dividend paying equity securities, including common shares and preferred shares;
- investing in all types of debt or yield securities including bonds, debentures, notes, convertible bonds, payment-in-kind bonds, discounted debt instruments, restructured debt securities, loan assignments, loan participations and high yield, lower rated debt securities;
- investing in debt securities of companies in reorganization or distress and government securities of emerging or other countries.
The Fund may use specified derivatives, such as options, futures and forward contracts, to:
- hedge against losses associated with rising interest rates, equities and investments in indices,
- gain exposure to fixed income instruments without actually investing in them directly (when owning the derivative investment is less costly than owning the fixed income instrument itself),
- minimize the risk of currency fluctuations, and
- enhance income.
Caldwell Advantage Opportunity, LP (U.S. Investors Only)
Caldwell Advantage Opportunity, LP focuses on investing in global securities exchanges that are experiencing fundamental change.
The Exchanges Opportunity: Securities exchanges (stock, derivatives and fixed income) are an under-owned and under-researched asset class. Exchanges around the world are demutualizing, becoming publicly owned and consolidating into international and regional power blocks. Significant gains are being realized as a result of these steps. Our hands-on involvemement in the transformation of Exchanges from private member-owned utilities to publicly traded for-profit entities, provides a unique advantage in identifying the key elements essential for exchanges to successfully evolve in the competitive environment. We use this advantage as a form of intellectual arbitrage to identify opportunities in this sector, both in North America and overseas, that others often do not recognize.
Caldwell International Advantage Fund (International Investors Only)
The investment objective of this Fund is to generate long-term capital growth through both traditional and non-traditional investments and stategies.
Wherever a functional advantage exists, the Fund will seek to capitalize on it.
The investment strategies that the Fund will use to achieve its investment objective will include:
- Acquiring interests in memberships and seats on private securities exchanges globally
- Acquiring the common and special shares of public and non-public securities exchanges
- Identifying and acquiring securities of companies that appear attractive based on valuation
- Participating in private placements by companies that have publicly traded securities
- Purchasing securities of unlisted companies and other illiquid entities
- Acquiring royalty interests
- Investing in equity securities or equity-related securities including common shares and preferred shares and to a lesser extent in other kinds of securities, including units and warrants, and writing or acquiring put and call options or acquiring futures contracts and commodities
- Investing in issuers trading at a discount due to temporary events caused by market reactions to negative news
- Investing by way of short sale opportunities in companies with deteriorating financial conditions, negative surprises and unattractive valuations
- Short sale position of stocks listed on major exchanges up to 50% of the Funds net asset value.
Caldwell Growth Opportunities Trust
(Canadian Accredited Investors Only) CWT100
Wherever a functional advantage exists, the Fund will seek to capitalize on it.
The investment strategies that the Fund will use to achieve its investment objective will include:
- Acquiring interests in memberships and seats on private securities exchanges globally
- Acquiring the common and special shares of public and non-public securities exchanges
- Identifying and acquiring securities of companies that appear attractive based on valuation
- Participating in private placements by companies that have publicly traded securities
- Purchasing securities on unlisted companies and other illiquid entities
- Acquiring royalty interests
- Investing in equity securities or equity-related securities including common shares and preferred shares and to a lesser extent in other kinds of securities, including units and warrants, and writing or acquiring put and call options or acquiring futures contracts and commodities
- Investing in issuers trading at a discount due to temporary events caused by market reactions to negative news
- Investing by way of short sale opportunities in companies with deteriorating financial conditions, negative surprises and unattractive valuations.
Caldwell Institutional Equity Pool
(Canadian Accredited Investors Only) CWT300
The core portfolio for the Caldwell Institutional Equity Pool is based on the Manager's proprietary momentum – based investment model. This model focuses on stocks that have demonstrated the most consistently positive price performance over the preceding two years.
This core portfolio will be supplemented by applying additional strategies using both North American and International Equities. The strategies include:
- Identifying and acquiring securities of companies that appear attractive based on valuation
- Participating in private placements by companies which have publicly traded securities
- Purchasing securities of unlisted companies or other illiquid entities
- Investing in equity securities or equity-related securities, including common shares and preferred shares, and to a lesser extent in other kinds of securities, including units and warrants, and write, or acquiring futures contracts and commodities
- Investing in issuers trading at a discount due to temporary events caused by market reactions to negative news.
Caldwell Institutional Bond Pool
(Canadian Accredited Investors Only) CWT400
The Fund is focused on owning income producing investments, with a focus on government guaranteed federal and provincial bonds and money market instruments.
The terms to maturity will vary between very short-term investments and mid – to long-term bonds.
When interest rates are rising, the Manager endeavors to own shorter maturities to take advantage of higher rates. In a declining rate environment, the Manager seeks to lock up better rates by investing in longer bonds.
From time to time, the Fund may invest a portion of its assets in other income producing vehicles that the Manager believes will enhance the Fund's overall return and cash flow. These may include corporate bonds, convertible bonds, income and royalty trusts, dividend paying common shares and other income oriented securities.
The Fund may use derivatives, such as options, futures and forward contracts to:
- Hedge against losses associated with rising interest rates, equities and investment indices
- Gain exposure to fixed income instruments without actually investing in them directly (when owning the derivative investment is less costly than owning the fixed income instrument itself)
- Minimize the risk of currency fluctuations and enhance income.