February 20, 2015 – An ABC Funds Mid-Month Special Commentary

Unofficial ABC Funds Performance as of Thursday, February 19, 2015

 ABC Funds Unofficial Unit Price (Feb. 19/15) Official Unit Price (Dec. 31/14) Unofficial Month to Date Unofficial Year to Date
ABC Fully-Managed Fund $7.7202 $7.3258 + 4.69 % + 5.38 %
ABC Fundamental-Value Fund $16.3574 $15.7836 + 7.10 % + 3.64 %
ABC American-Value Fund $7.0251 $6.5650 + 4.89 % + 7.01 %
ABC North American Deep-Value Fund $5.6736 $5.6380 + 7.06 % + 0.63 %
ABC Dirt-Cheap Stock Fund $7.5633 $7.2701 + 6.66 % + 4.03 %

After working diligently to reposition our five ABC Funds over the past 4-5 months, we are extremely pleased with the positive results we have achieved so far for the month of February and the first two months of 2015. The painstaking, in-depth stock picking of both Harlan and Ryan Michael have been instrumental in our turnaround and I am extremely proud of their efforts and high quality work under extreme pressure.

For the past four months, Harlan and Ryan have been continuously value-screening for mispriced, Canadian and American common stocks to be purchased for our portfolios. The selection of new undervalued ABC common stock holdings is a direct result of their determination and diligent hard work. I look forward to their continued assistance.

This month we welcomed the addition of Neil Moshe, an MBA and CFA charterholder, experienced in fundamental analysis and portfolio management. Neil brings considerable expertise to our team and a very positive attitude.

With regard to our ABC portfolios, our team has made a number of fundamentally attractive and strategic common stock purchases recently. In Canada, we added three undervalued REITs including Pure Industrial REIT, Plaza Retail REIT, and InterRent REIT. Other Canadian positions we purchased and are excited about include: Exco Technologies, an auto components company and TransForce, a transportation and logistics services provider. We also bought a number of undervalued free cash flowing U.S. names including: Gilead Sciences, a biopharmaceutical company; Big Lots Inc., a discount retailer; Cooper Tire and Rubber, a replacement tire manufacturer; Activision Blizzard, a developer and distributor of interactive entertainment; Micron Technology, a computer memory chips manufacturer; Regal-Beloit Corporation, a manufacturer of electrical motors; Las Vegas Sands, an owner and operator of resorts, casinos and convention centers; and Carriage Services, a Texas-based operator and owner of funeral home services and cemeteries.

After reviewing our portfolios, it is my belief that we have successfully turned the corner toward a successful 2015. We have repositioned our holdings to reflect a well-diversified mix of undervalued equities. More importantly, my team and I are deeply committed to both superior performance and service. To that end we have recently made a number of personnel changes having not only added Neil Moshe to the investment team but also Tim Sennema, Mayuri Mahentharan and Marcela Balan to our client service group to assist Ian D’Souza, Gerry Frankel and Mariel Michael.

We are very excited to be launching our website in French within the next week. We want to thank Mayuri Mahentharan for her hard work in translating the site. Moreover, as we strive to continuously keep our clients up to date, we will begin posting video summaries of our quarterly investor meetings, which will be available on our website at www.abcfunds.com.

Most importantly, as a measure of our profound commitment and full confidence in our revitalized group and ABC portfolios, my family and I are making a full 2015 contribution to our RSP and TFSAs at the February 27, 2015 valuation date.


Irwin A. Michael Signature

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

ABC Fully-Managed Fund – Sector Breakdown

ABC Fundamental-Value Fund – Sector Breakdown

ABC American-Value Fund – Sector Breakdown

ABC North American Deep-Value Fund – Sector Breakdown

ABC Dirt-Cheap Stock Fund – Sector Breakdown

(Pour le français, cliquer ici)

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