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March 2018 Pricing Commentary

Considering the extreme price volatility of the market we are pleased that four of our ABC Funds are still posting positive year to date investment performance.

Overall, we remain optimistic for the balance of 2018. It is our view that the equity markets are presently oversold given that we expect 15-20% U.S. corporate earnings growth in 2018 and stable to slightly higher interest rates.

Irwin A. Michael Signature

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

February 2018 Pricing Commentary

While there was extraordinary global stock price volatility during the month of February our five ABC Funds outperformed their respective index benchmarks during this period.

More importantly, a number of our individual stock holdings reported improved quarterly earnings and/or dividend increases in February including: CIBC, Royal Bank of Canada, CCL Industries, Suncor Energy, Bank of Nova Scotia, and Six Flags Entertainment.

Furthermore, with the U.S. corporate tax reduction, gradually rising interest rates and steady worldwide economic growth, we expect improving company profits and continued dividend increases this year. While we anticipate periodic stock market volatility, which will test one’s bullish resolve, positive investment tailwinds should push common stock prices higher in 2018.

Irwin A. Michael Signature

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

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.

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