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

Apr. 13, 2021

Over the past month, stock markets reported growth in most geographical regions. The expectations for improvement in the economic situation and the increase of vaccinations in the United States were reflected in the growth of shares and rising interest rates on 10-year US government securities. In Europe, a new wave of COVID-19 caused a decline in interest rates on government securities. However, stock indexes reflected a series of stimulus packages in Europe. In terms of monetary policy, the European Central Bank has announced that it will increase purchases under its pandemic program. Fiscal measures have also been announced: Germany plans to increase spending in 2021 by 60 billion EUR.

Fiscal measures were not lacking in the United States either. A package of 1.9 trillion USD was approved for economic assistance, representing 9% of the US GDP. At the same time, President Biden managed to reach his goal of vaccinating 100 million people in 100 days. Vaccination raises the expectations that the restrictions will be lifted, which should boost the companies most affected by the pandemic. In March, the reorientation to value stocks relative to growth stocks continued, evident from the difference in the performance of the broad S&P 500 index and the technological NASDAQ.

The economic data announced in March were mixed. In Europe, industrial production rose by 0.8% in January, unemployment remained stable at 8.1%, but retail sales fell by 6.4%. In the United States, unemployment fell to 6.2% in February, but retail sales decreased by 3% over the same period. Due to the colder weather, a decline was also reported in industrial production - by 2.2% for the month.

The observed growth of the stock markets since the beginning of the year, with adjustments of about 10%, is expected to continue in the coming months. Hopes of loosening of the restrictions and speeding up vaccination support the economic recovery thesis. At the same time, the uncertainty surrounding the development of the pandemic creates preconditions for continued volatility in the financial markets. In the context of the current economic situation, the management of MC “Compass Invest” continues to follow its strategy for selecting companies with long-term growth potential.
 

PRESENTATION OF MUTUAL FUND “COMPASS GLOBAL TRENDS”

MF “Compass Global Trends” ended the month with a price per unit of 1.4416 BGN, which is a decrease of -1.29% for the month and -2.33% compared to the beginning of the year.

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


 

PRESENTATION OF MUTUAL FUND “COMPASS EUROSELECT”

MF “Compass Euroselect” ended the month with a share price of 0.9874 EUR, which is an increase of 1.30% for the month and a decrease of -1.32% compared to the beginning of the year.

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

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