In May, the leading stock indexes in almost all geographical regions marked their first negative month since the beginning of the year. During this period, the price of one share of Compass Euroselect reported a decrease of -3.68% which is a smaller decrease than that of the indexes in Europe (where all companies in the fund's portfolio are based) and the United States. Since the beginning of the year, the fund's shares have risen by 8.12% at the end of May. The significant declines in the last month are a reflection of the fear of the deepening USA-China conflict and its effects on the global economy.
Some of the companies in the portfolio of Compass Euroselect presented their results for the first quarter of the year in early May. Three of them were among the best performers for the month in the fund: the Spanish company operating telecommunication towers Cellnex Telecom (+ 14.70% in EUR), the sports goods manufacturer Adidas AG (+ 11.83% in EUR) and the company offering various solutions for hearing impairment Demant AS (+ 4.36% in EUR). Among the positions with the highest growth in May are also: the German company offering cyber security and cryptography services Secunet Security (+ 5.50% in EUR) and also the German-based digital payment company Wirecard AG (+ 4.79% in EUR).
The reporting season with corporate results for the second quarter of the year for the companies in the portfolio of MF Compass Euroselect started in June. Guidelines for expectations for the second half of the year will be the main focus of investors. For its part, the forecasts will largely depend on the development of geopolitical issues. The mainly supportive monetary policy of the leading central banks is expected to continue against the background of increased uncertainty. In this context, the fund's management expects in the long run the selection of companies in the portfolio of MF Compass Euroselect to perform better than the average market. At the same time, the strategy of the risk management fund allows some mitigation of the inevitable negative effects of short-term market adjustments affecting all market participants.
If you would like to learn more about the presentation of MF Compass Euroselect in May, 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