February was a mixed month for global equity markets, as heightened geopolitical developments contributed to late-month volatility and risk aversion among investors. Despite this pressure, the underlying economic backdrop remains quite positive.
Several core holdings delivered strong earnings results during the month. Most notably, NVIDIA reported an exceptional quarter, exceeding expectations on both revenue and profit while meaningfully raising forward guidance. The company’s positive outlook continues to be supported by broad-based demand for AI infrastructure and accelerated data center deployment. This performance further reinforces our conviction that the AI revolution is still in its early innings and remains a powerful long-term growth driver.
Economic indicators throughout February were also supportive. Inflation remained stable and interest rate expectations continue to provide a favourable pathway for equities.
ABC Funds outperformers during the month included Canadian National Railway, Canadian Pacific Kansas City, TC Energy, Arm Holdings, McDonald’s, and CIBC highlighting the strength and diversification of our portfolios.
Looking ahead, we remain confident in the positioning of our funds. Our diversified, high-quality holdings are structured to navigate the current period of short-term uncertainty while remaining aligned with important long-term secular growth trends.
Irwin A. Michael, President
I.A. Michael Investment Counsel Ltd.