All three ABC Funds started the year on a strong note, with each fund outperforming its respective benchmarks in January. This early-year outperformance was largely driven by several of our highest-conviction holdings, including Micron, Meta, ASML, Amazon, Alphabet, and Bank of Montreal.
A defining theme for 2026 is the continued acceleration of the artificial intelligence cycle, which is driving meaningful innovation across sectors. From AI infrastructure and high-bandwidth memory to applications in robotics, autonomous systems, and cloud computing, we believe this trend remains in its early stages and our portfolios are well-positioned to benefit.
Despite some end-of-month volatility following the appointment of new Federal Reserve Chair Kevin Warsh, we view the transition as a net positive. His appointment removes a key source of uncertainty around U.S. monetary policy and signals a steady path forward. Meanwhile, the broader economic backdrop remains constructive: the U.S. economy is showing strength, inflation is stable, and corporate earnings have been coming in ahead of expectations.
Notably, recent earnings from companies like Meta and Apple reaffirm our confidence in the resilience and growth potential of high-quality, large-cap technology businesses, a core component of our investment strategy.
Looking ahead, we remain optimistic about the year to come. With improving visibility on interest rates, a strong economic foundation, and continued momentum across key innovation themes, we believe our ABC Funds are well-positioned to navigate the market and capitalize on the opportunities that lie ahead.
Irwin A. Michael, President
I.A. Michael Investment Counsel Ltd.