The price of one share of MF Compass Euroselect was 0.9331 EUR at the end of September, which is an increase of 2.56% compared to the end of August and 12.05% compared to the beginning of the year. For comparison, the leading European indexes (investments in the fund's shares are entirely in European companies) also reported growth during the month in parallel with the leading indexes in the United States. Financial market optimism has returned due to the improvement in the tone of the US-China discussions amid supportive monetary policy from the central banks. There was also volatility caused by geopolitical tensions in Saudi Arabia, the United Kingdom and Europe.
In September, the largest growth of shares in the portfolio of MF Compass Euroselect was made by: the Dutch company leader in the production of lithographic machines ASML Holding (+ 12.4% in EUR), the French insurance company AXA SA (+ 12.3% in EUR), the Finnish UPM-Kymmene Oyj (+ 10.6% in EUR) wood processing company, the UK-based tonic manufacturer Fever Tree (+ 9.6% in EUR) and the German manufacturer of machinery for the automobile and arms industry Rheinmetall AG (+ 8.2% in EUR).
Important geopolitical events are forthcoming in October including: a meeting between US and Chinese negotiators, a potential postponement of Brexit and meetings of leading central banks. The reporting season for the companies in the portfolio of MF Compass Euroselect is expected to start in the middle of the month with results for the third quarter of the year. Given the weakening macroeconomic data and the increased geopolitical uncertainty, the fund's management limits its exposure to equities, adhering to the long-term strategy of MF Compass Euroselect. In this way, tactical solutions aim to reduce short-term fluctuations in the value of the portfolio of quality European companies, leaders in the sectors in which they operate.
If you would like to learn more about the presentation of MF Compass Euroselect in September, 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