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Monthly Bulletin of Mutual Fund "Compass Global Trends" and Mutual Fund "Compass Euroselect" and market analysis as of February 28th 2021

Mar 10, 2021

Stock markets in February were in positive territory, including at the end of the month. Among the factors that contributed to the adjustment during the month were the increase in interest rates on the formation and reorientation of investors to shares on the value (stocks of value).

 

Higher government spending and rising commodity prices have led to a sell-off in bond markets globally, with a negative impact on stock markets. The positive development of vaccination in the United States and the United Kingdom has fueled hopes of opening up economies in the second half of the year. Expanding fiscal stimulus further boosted expectations for growth in demand for consumer goods. The United States is expected to approve a stimulus plan for another 1.9 trillion. USD in addition to the measures voted in December. Thus, the stimuli for the economy will be nearly 13% of the gross domestic product for 2021.

 

On the other hand, bond market developments reflected both higher future economic growth and expectations of higher inflation. Although for a short period in mid-2021, inflation is expected to rise. Then, on the one hand, most of the restrictions should be removed and demand increased, and on the other hand, the calculation of annual inflation will be relative to the lowest point in 2020. In response to these concerns, the US Federal Reserve has assured that it is not going to change the forecast purchases of assets and that is not likely to reduce the size of purchases soon.

 

Expectations for opening of the economies reoriented investors in another direction. In February, companies that were growing during the pandemic saw a decline at the expense of shares of value, which should have an increase in demand for their products after the restrictions are lifted. The dynamics of economic processes will continue to drive the activity of financial markets. In the environment of continuous high uncertainty, MC “Compass Invest” still holds its focus on portfolio diversification, selecting companies with long-term potential.

 

PRESENTATION OF MUTUAL FUND “COMPASS GLOBAL TRENDS”

MF “Compass Global Trends” ended the month with a price per unit of 1.4604 BGN, which is a decrease of -0.67% for the month and -1.06% compared to the beginning of the year.

Price for one unit of the fund for the period from April 1st 2014 until February 28th 2021.

 

PRESENTATION OF MUTUAL FUND “COMPASS EUROSELECT”

MF “Compass Euroselect” ended the month with a share price of 0.9747 EUR, which is a decrease of -0.48% for the month and a decrease of -2.59% compared to the beginning of the year.

Price for one unit of the fund for the period from July 16th 2018 until February 28th 2021.


Read more about the presentation of Mutual Fund “Compass Global Trends” and Mutual Fund “Compass Euroselect” in February, and find out more about the development of the global financial markets and management expectations HERE.