Investment Commentary

Investment Commentary March 2015

Concerns regarding earnings, valuation and quixotically the timing and extent of Federal Reserve rate action all conspired to hold the S&P 500 in check for the first quarter. Overseas markets did better, especially in local currencies. Quantitative easing has gone global. Fixed income markets also outperformed reflecting the concerns about economic growth. The S&P 500 has been trading sideways now for four months, a mini correction in time and preferable to the alternative. US corporations continue to set records in their return of cash to shareholders by way of dividends and share repurchase.

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Investment Commentary December 2014

The past year has been one of achievement at Bristol Gate.

The US Equity Fund performed well in 2014, again besting the S&P 500 Total Return Index. The companies we own increased their dividends in 2014 by nearly 27% over 2013 levels, above our historical average of 18%, and continued to buy back substantial amounts of stock. Balance sheet metrics remain strong. Our assets under management grew from $56mm CAD dollars in assets at year-end 2013 to $240mm CAD dollars at December 31, 2014.

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Investment Commentary September 30 2014

At September 30, the Fund’s return was ahead of the Index by over 1%. In the recent and dramatic equity sell-off and partial recovery, the gap between the Fund’s return and the Index has increased. Selling-off less in a market decline and recovering faster than the Index is behaviour entirely consistent with the history of the Fund, attributable we believe to the financial strength of our companies. The decline in the Canadian dollar has clearly helped $CAD investors.

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