The price of one share of MF Compass Global Trends was 1.1338 BGN at the end of May, maintaining a positive return since the beginning of the year after a significant decline during the month. After the strong start of the year for the financial markets, in the first days of May we observed continued growth in the financial markets. The broad US index reached a new high, recovering fully from the decline of the last quarter of 2018. However, the deepening trade conflict between the United States and China reversed the upward movement in the global financial markets. As a result, the leading indexes on shares reported a decline of over -6% in May.

Among the companies in the fund's portfolio, the largest increase in the share price was reported by the Spanish Cellnex Telecom (+ 14.70% in BGN) and the American Tower Corp. (+ 7.54% in BGN) - both control telecommunication towers. In the top 5 of the best performing positions were also: Equinix (+ 7.48% in BGN) which manages and leases data centers; the Indian bank ICICI Bank (+ 5.43% in BGN) and the German-based company operating in the field of digital payments Wirecard (+ 4.79% in BGN).

Among the key events in June are the G20 meeting and the beginning of the reporting season with corporate results for the second quarter of the year. The increased volatility in the capital markets is expected to continue given the phase of the economic cycle. And while we see mostly supportive monetary policy of the leading central banks, geopolitical issues bring additional uncertainty. The development of the trade conflict between the United States and China will be crucial for financial markets in the coming months, given its great importance for the global economy. In this context, the fund's management expects in the long run the selection of companies in the portfolio of MF Compass Global Trends 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 Global Trends 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