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Monthly Bulletin of Mutual Fund “Compass Global Trends” and Mutual Fund “Compass Euroselect” and market analysis as of November 30th 2020.

Dec. 09, 2020

MARKET COMMENT

The announcement of three vaccines against COVID-19, as well as the outcome of the US presidential election in November, encouraged financial markets. The most significantly affected sectors and regions, which reported the largest loss in the value of their shares since the beginning of the year, enjoyed the most significant rise in the last month. Hopes for a recovery of the economic activity also contributed to higher oil prices.

And while financial markets, looking a few steps ahead, reflect the optimism about tackling the pandemic, the number of new infections is still rising and measures against the spread of the virus are being tightened in a number of countries. The negative economic effects of the restrictions are already noticeable in the euro area - the Purchasing Managers' Index (PMI) for the industrial sector fell by one point to 53.8 against a significant decline in the services sector by -4.9 to 41.3. Consumer confidence is also deteriorating, pointing to a decline in the GDP of the euro area for the last quarter of the year.

The US recovery is still going well. Signs of deterioration have so far been observed in consumer confidence, amid falling unemployment in October. An improvement in November was observed in the industrial production and services, compared to the Purchasing Managers' Index. Despite the change of presidential administration in the United States, it seems increasingly likely that the Senate will remain under the control of the Republican Party. With such a distribution of power, the stimulus packages for the economy are expected to be lower and corporate tax increases weaker than those proposed by Joe Biden.

The uncertainty in which financial markets operated for most of the year has eased significantly since the US presidential election and the announcement of an effective vaccine. The return to a functioning economy is expected to support the recovery of corporate profits, and hence the performance of stock markets. The management of the funds of MC “Compass Invest”, in accordance with the strategy for selection of quality businesses, resistant to economic shocks, aims to build well-diversified portfolios.

PRESENTATION OF MUTUAL FUND “COMPASS GLOBAL TRENDS”

MF “Compass Global Trends” ended the month with a share price of 1.4309 BGN, which is an increase of 8.77% for the month and an increase of 15.28% compared to the beginning of the year.

Price for one unit of the fund for the period from April 1st 2014 until November 30th 2020.

PRESENTATION OF MUTUAL FUND “COMPASS EUROSELECT”

MF “Compass Euroselect”, with a share price of 0.9978 EUR, increased by 5.59% for the month and 2.77% compared to the beginning of the year.

Price for one unit of the fund for the period from July 16th 2018 until November 30th 2020.

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