ABC Global Equity Fund

Objective

ABC Global Equity Fund is a “go-anywhere in the world” equity fund with unlimited investment flexibility. The investment objective of the Fund is to seek long‐term capital appreciation by investing primarily in a diversified portfolio of Canadian and American equity securities with a bias to international exposure.


Top Ten Holdings

  • Exco Technologies Ltd.
  • Six Flags Entertainment Corp.
  • Broadcom Ltd.
  • Adobe Systems Inc.
  • MasterCard Inc., Class A
  • Uni-Select Inc.
  • Apple Inc.
  • East West Bancorp Inc.
  • Loblaw Companies Ltd.
  • Becton, Dickinson and Co.

As at December 30, 2016

Sector Breakdown

Geographic Breakdown

 

Holding Commentaries

Apple Inc. (AAPL)

The Apple iPhone 7 was released on September 16, 2016, and early data looks promising. iPhone 7 demand appears to be tracking ahead of expectations, led by a strong consumer reception and aggressive carrier promotions in the US, China and other markets. Analysts have raised their expectations for iPhone shipments for the balance of 2016 while TSMC, the manufacturer of the iPhone 7 processor, stated “high-end smartphone demand is better than we previously expected”.

Furthermore, a Goldman Sachs survey showed that in terms of holiday purchase intentions, the iPhone 7 is the top consumer electronic product. More importantly, supply has not yet caught up with demand, especially with the higher-priced Plus model.

Additionally, safety issues with Samsung’s Galaxy Note 7 have resulted in the company halting sales and production of the device. This is an incremental positive for Apple, with one analyst estimating Apple has the opportunity to gain 8 million unit sales, which would lead to a higher smartphone market share and expansion of the iOS user base.

Loblaw Companies Ltd. (L)

Loblaw Companies Ltd., is a leading and well-managed Canadian grocer selling under its Loblaw, PC, Shoppers Drug Mart and Joe Fresh brands. The company, after the purchase of Shoppers Drug Mart, became the foremost pharmacy retailer in Canada. More importantly, with its huge distribution network of over 2400 grocery and pharmacy stores, Loblaw provides a wide selection of consumer staples and should be a major margin beneficiary of corporate cost cutting and increased company synergies. Looking forward, we see Loblaw’s continued success due to a large range of retail formats of both food and drugs enabling the company to grow market share. Continued cost-efficiency initiatives should drive double digit EPS growth and rising free cash flows will permit Loblaw to repurchase a significant amount of shares through corporate buybacks.

The Closed End Network

The Closed End Network

The Closed End Network handles the trading of units for our two closed-end funds: ABC North American Equity Fund and the ABC Global Equity Fund.

Our Closed End Network enables investors to buy sell on a no-fee basis, and always at net asset value. We maintain a list of interested buyers and sellers and facilitate the distribution and redemption of units.

For new investors looking to invest in the ABC North American Equity Fund or the ABC Global Equity Fund, please contact our office.

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