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Monthly Bulletin of Mutual Fund "Compass Global Trends" and Mutual Fund "Compass Euroselect" and market analysis as of January 31st 2021

Feb. 09, 2021

Despite an optimistic start of the month, stock markets in developed economies ended January in negative territory. The spread of new strains of the coronavirus and the slowdown in vaccine supplies from the initial expectations were some of the concerns for investors. An additional complication was caused by the coordinated action of small investors, which led to large losses for the hedge funds, which occupied significant positions in short sales.

In January, the focus was on the development of the pandemic and the response of governments and central banks. The growing number of cases and the tightening of restrictive measures were counteracted by the hopes for vaccination amid fiscal and monetary incentives. Limited supply of vaccines and delayed deliveries jeopardize the objectives of the major economies. Positive news about two more vaccines balanced the concerns.

At the same time, central banks and governments continue to show a willingness to support the economy. The Democratic Party in the United States gained control of Congress after winning the runoff elections for the control of the Senate in the state of Georgia. A week after the victory, the new presidential administration announced fiscal stimulus for 1.9 trillion USD, which is nearly 10% of the country's gross domestic product (GDP).

Globally, economic indicators are better than expected. Half of the companies in the broad US S&P 500 index have already published their financial statements for the last quarter and 88% of them report higher-than-expected profits.

Market volatility is expected to continue, driven mainly by the speed of distribution of vaccines and easing of restrictive measures. The reporting season continues in February, which will make clear not only the current results of the companies, but also the expectations for the coming quarters. The management of “Compass Invest” funds adheres to its strategy for selecting companies growing at a faster pace than the industries in which they operate, building diversified portfolios to sectors, regions and individual companies.

PRESENTATION OF MUTUAL FUND “COMPASS GLOBAL TRENDS”

MF “Compass Global Trends” ended the month with a price per unit of 1.4702 BGN, which is a decrease of -0.39% for the month and -0.39% compared to the beginning of the year.

Price for one unit of the fund for the period from April 1st 2014 until January 31st 2021.

 

PRESENTATION OF MUTUAL FUND “COMPASS EUROSELECT”

MF “Compass Euroselect” ended the month with a share price of 0.9794, which is a decrease of -2.12% for the month and a decrease of -2.12% compared to the beginning of the year.

Price for one unit of the fund for the period from July 16th 2018 until January 31st 2021.

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