MF Compass Euroselect, with a share price of 0.9469 EUR, rose by 0.90% at the end of July last month, outpacing the monthly results of most European indexes. In Europe (where all the companies in the fund's portfolio are based) investor sentiment was negatively affected by weak economic data, which in turn boosted expectations of lower interest rates on deposits from the European Central Bank. Over the past month, most of the companies in the MF Compass Euroselect portfolio presented their financial results for the second quarter of the year. The positive news was reflected in the growth of their share prices, and hence the performance of the fund for July was better than almost all leading European indexes.
Among the positions with the highest growth during the month were: the Dutch ASML Holding (+ 10.37% in EUR) a manufacturer of lithographic machines, the French Ubisoft Entertainment (+ 8.60% in EUR) a computer game developer, the Irish Smurfit Kappa (+ 7.18% in EUR) paper and packaging manufacturer, German Secunet Security (+ 7.02% in EUR), offering cyber security and cryptography services and sporting goods manufacturer Adidas AG (+ 6.65% in EUR).
In August we expect the other companies in the portfolio of MF Compass Euroselect to publish their financial results for the second quarter of the year. Given the selection of quality European businesses in the fund's portfolio, management expects are for better performance than the market average. While the ECB should counter the continued slowdown in the euro area economy, geopolitical issues remain unresolved, which could create the conditions for market adjustments. Accordingly, the fund's management is ready to limit short-term fluctuations in the value of the portfolio through tactical decisions.
If you would like to learn more about the presentation of MF Compass Euroselect in July, as well as get more information about the development of global financial markets and management expectations, please click HERE to view the full newsletter in a PDF format.
With respect,
Compass Invest JSC team