In June, North American equity markets displayed mixed results, with the US stock market significantly outperforming its Canadian counterpart. All three ABC Funds not only exceeded their benchmarks but also reached new all-time highs during the month. This performance was largely driven by the funds’ US geographic focus, coupled with our strategic commitment to high-growth sectors, particularly technology.
The AI revolution remains a pivotal area of growth, fundamentally altering industries worldwide. Our ABC Funds are diligently capitalizing on this incredible technological transformation, with strategic investments in leading companies that are driving these remarkable advances.
For instance, on June 10th, Apple unveiled its new “Apple Intelligence” AI strategy. This announcement included a suite of advanced generative AI features such as an enhanced Siri, real-time transcription for calls, improved health monitoring tools, personalized emojis, and the integration of ChatGPT across all its devices. We see these developments as game-changing for Apple, which could spur significant growth by driving higher user engagement and opening up new revenue streams. Following these announcements, Apple’s stock surged, breaking past significant technical resistance levels to new all-time highs.
Additionally, after the close on June 12th, Broadcom reported impressive quarterly earnings results, exceeding Wall Street’s forecasts on both the top and bottom line while also increasing their financial outlook. The company’s success was driven by robust demand for their generative AI solutions, sending Broadcom’s stock price soaring to record levels. Furthermore, the company declared a 10:1 stock split, which further powered its investment attraction.
Other significant contributors to our funds’ performance in June included NVIDIA, ServiceNow, Microsoft, Amazon, Meta, Alphabet, Adobe, and ASML. These companies continue to deliver outstanding financial results, further corroborating the strength of our ABC Funds’ investment strategy.
In a strategic move to enhance our portfolios, we added ARM Holdings to all three ABC Funds. Through our analysis, we recognized ARM as a pivotal player in the AI revolution, benefiting greatly from its leading-edge processor architectures that are crucial for AI and mobile technology.
As we enter the second half of 2024, our outlook remains optimistic. We are confident in our diversified, large capitalization portfolios that are strategically positioned in those sectors at the forefront of the AI revolution.
Irwin A. Michael, President
I.A. Michael Investment Counsel Ltd.