June 2016 Pricing Commentary The month of June was mainly influenced by Britain’s referendum, which led to the surprise decision to exit the EU. As a result, stocks showed a meaningful negative reaction followed by a subsequent recovery. While the implications of the Brexit vote are not completely clear, the ABC Funds are invested in companies that are fundamentally intact, continue to generate positive revenues, earnings, and free cash flow. Moreover, they are mostly exposed to North America. Despite the emotional headlines associated with Brexit, we reiterate our comments of our June 30th email: “Interestingly, there might be a positive effect on North American assets, and in particular, U.S. stocks, bonds, real estate and the U.S. dollar. For instance, those international investors who have become increasingly uncomfortable with the present financial environment in the U.K. and the European Union, we believe, could be inclined to redirect their present and future investments from Europe to North America. It is our sense that the U.S. economy with slow but steady economic and employment growth, low interest rates, a strong currency, solid corporate earnings and relative political stability could become a significant beneficiary of “peace of mind” international investment funds. Consequently, we remain optimistic on U.S. equities.” Irwin A. Michael, President I.A. Michael Investment Counsel Ltd.