Apart from the series of months with upward movement of the leading stock indexes, August was also recorded as the best month for the financial markets for decades. Accordingly, the broad US S&P 500 index rose by 7.0% and the technological NASDAQ rose by 9.6% during the month. August also marks the end of the second-quarter earnings season in the United States, which came as a positive surprise given the weak expectations. Although corporate profits fell 33% on annual basis, 84% of the companies exceeded the expectations and a large number raised their forecasts for the coming quarters. Not surprisingly, the health and IT sectors were particularly strong, while the profits of the energy sector were significantly affected.
On the economic front, most of the announced data continue to point to solid, albeit moderate, growth in August. In the US, the Purchasing Managers' Index (PMI) for both manufacturing and the service sector exceeded expectations with a large margin, reaching 53.6 and 54.8, respectively.
In the euro area, unemployment rose slightly to 7.8% in June from 7.7% in May, suggesting that the measures taken by governments present in most European countries continue to prevent large job losses. At the same time, retail sales have recovered, reaching their pre-crisis levels, and industrial production, although still below pre-crisis levels, is also recovering.
Presentation of Mutual Fund “Compass Global Trends”
MF “Compass Global Trends” ended the month with a share price of 1,494 BGN, which is an increase of 6.90% for the month and 15.97% compared to the beginning of the year. The main stimuli for the appreciation of the fund’s units were the positive financial results of the selection of companies in the fund's portfolio for the second quarter of the year.
Price for one unit of the fund for the period from April 1st 2014 until August 31st 2020.
Presentation of Mutual Fund “Compass Euroselect”
MF “Compass Euroselect” reported a 2.91% yield for August at a unit price of 0.9616 EUR, still remaining slightly below its levels since the beginning of the year (a decrease of -0.96% compared to the beginning of the year). For comparison, the leading European indices (all investments of the fund are in companies based in Europe) remain in negative territory compared to the beginning of the year. Compared to the noticeable decline in the indexes, MF “Compass Euroselect” performes better with a lower decline.
Price for one unit of the fund for the period from July 16th 2018 until August 31st 2020.
Read more about the presentation of Mutual Fund “Compass Global Trends” and Mutual Fund “Compass Euroselect” in August, and find out more about the development of the global financial markets and management expectations HERE.