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Monthly Bulletin of Mutual Fund "Compass Global Trends" and Mutual Fund "Compass Euroselect" and market analysis as of October 31st 2020.

Nov. 10, 2020

MARKET COMMENT

The rising cases of COVID-19 and the deteriorating economic outlook reflected in declining stock markets in October. Meanwhile, the investor sentiment has been affected by the upcoming US presidential elections.

The upward movement of the markets in the first weeks of the month turned with the resumption of measures against the spread of COVID-19. As a result, the broad S&P 500 ended the month with a decline of -2.77% in October, the technological NASDAQ -2.29% and the industrial Dow Jones -4.61% respectively.

Amid the increasing number of people infected by COVID-19 in the United States, the industrial production fell by -0.6%, but retail sales in September increased by 5.4% compared to last year. With the improvement of economic activity, a decline in unemployment is observed in September. However, the Purchasing Managers' Index (PMI), published for October, is deteriorating from the data we saw in September, both for services and for production.

In Europe, a number of the big countries have reached record levels of new cases of COVID-19, leading to the return of some restrictive measures. Despite the stimulating economic measures of the governments, the consumer confidence indicator decreased, with unemployment rising to 8.3%.

China looks set to become the only major economy with positive growth in 2020 compared to 2019. GDP for the third quarter was 4.9% compared to a year earlier, which is lower growth than expected, but still enviable.

PRESENTATION OF MUTUAL FUND “COMPASS GLOBAL TRENDS”

During the last month MF “Compass Global Trends” reported a decline of -4.36% at a share price of 1.3155 BGN. Compared to the beginning of the year, the yield remains in positive territory with 5.99% growth.

PRESENTATION OF MUTUAL FUND “COMPASS EUROSELECT”

The price of one share of MF “Compass Euroselect” decreased by -4.02% in the last month, reaching 0.9450 EUR. Compared to the beginning of the year the decrease is -2.67%. For comparison, the leading European indexes are down by double-digit percentages since the beginning of the year: the German DAX index fell by -12.77%, the French CAC 40 by -23.15% and the broad EuroStoxx fell down by -17.67%.

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