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January 2018 Pricing Commentary

All five ABC Funds posted materially positive investment returns for the month of January and significantly outdistanced the S&P/TSX benchmark. This outperformance was primarily due to our portfolios’ meaningful overweighting of American equities versus Canadian common stocks, which continue to lag U.S. returns. Furthermore, our 100% $U.S. currency hedge has continued to protect our portfolios from currency risk and dollar volatility.

Of note, the Funds’ January performance was boosted by a number of conspicuous stock outperformers including: Amazon.com, Alibaba Group, Brunswick Corp., Tencent Holdings, YY Inc., The Boeing Co., Taiwan Semiconductor Manufacturing, and NVIDIA Corp.

Irwin A. Michael Signature

Irwin A. Michael, President
I.A. Michael Investment Counsel Ltd.

December 2017 Pricing Commentary

The five ABC Funds outperformed their respective investment benchmarks for the year 2017. This achievement was primarily due to our portfolios’ significant U.S. equity overweighting relative to Canada, which provided our Funds with materially higher returns. Additionally, our 100% $U.S. currency hedge enabled our portfolios to mitigate currency risk and volatility.

In planning our investment strategy for 2018 we are very comfortable with our American security weighting, particularly in the U.S. technology, healthcare and financial sectors. Selective ABC favoured holdings include Aetna (the object of a takeover by CVS), Amazon, Apple, Becton Dickinson, Boeing, The Home Depot, NVIDIA, Microsoft, Tencent Holdings, MasterCard and Visa.

Wishing everyone a very healthy and happy 2018.

Irwin A. Michael Signature

Irwin A. Michael, President
I.A. Michael Investment Counsel Ltd.

November 2017 Pricing Commentary

All five ABC Funds posted positive investment returns for the month of November to reach new 2017 price highs.

The ABC Funds’ relative outperformance compared to their index benchmarks was mainly attributable to their 60-70% American securities weighting and a 100% $U.S. currency hedge so as to reduce price volatility. Looking back, these solid results were primarily due to the notable appreciation of a number of U.S. holdings including Amazon, Anthem, Becton Dickinson, Boeing, The Home Depot and Honeywell, as well as several Canadian stocks, Algonquin Power, the Canadian Imperial Bank of Commerce and Jamieson Wellness.

Irwin A. Michael Signature

Irwin A. Michael, President
I.A. Michael Investment Counsel Ltd.

October 2017 Pricing Commentary

Canadian and U.S. common stocks were notably stronger during the month of October lifting all five ABC Funds to 2017 price highs.

Positive highlights over the past four weeks included earnings beats from ABC holdings: Amazon, Google, Microsoft, Visa, MasterCard, Netflix and Waste Management, as well as the potential takeovers of Aetna Inc. and Rockwell Automation. Additionally, price strength of our Canadian bank stocks also contributed to our October investment performance.

Irwin A. Michael Signature

Irwin A. Michael, President
I.A. Michael Investment Counsel Ltd.

September 2017 Pricing Commentary

All five ABC Funds’ portfolios produced positive investment returns for the month of September. This performance was largely due to U.S. and Canadian banks and financials, as well as certain individual holdings including: Home Depot, Boeing, Tencent Holdings, NVIDIA, CCL Industries and Boston Scientific. Of particular importance to our clients is our year-to-date performance of all five ABC Funds, which have significantly outperformed our index benchmarks. Our 100% U.S. currency hedge remains in place to protect our portfolios from currency volatility. With only three months remaining in 2017 we are quite optimistic with regard to the equity markets, the world economies and our ABC portfolios.

Irwin A. Michael Signature

Irwin A. Michael, President
I.A. Michael Investment Counsel Ltd.

August 2017 Pricing Commentary

Primarily due to our significant equity exposure in American healthcare, technology and financials the five ABC Funds have outperformed our index benchmarks for year-to-date 2017.

We continue to have in place a 100% U.S. currency hedge which has protected our portfolios, particularly with the recent considerable strength of the Canadian dollar. Similar to our earlier 2017 comments we remain optimistic with regard to the North American economies and common stocks. More importantly, we believe that our five ABC portfolios are well-positioned for the balance of 2017.

Irwin A. Michael Signature

Irwin A. Michael, President
I.A. Michael Investment Counsel Ltd.

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