Rising macroeconomic uncertainty in September was reflected in the decline of much of the global market indices. In the U.S., leading equity indices continued declines from the beginning of the year. The broad S&P 500 index fell by -9.34% and the tech-heavy NASDAQ by -10.5%. Europe also saw declines, driven by the growing likelihood of a recession and the threat of an energy crisis. The U.S. Federal Reserve (Fed) and European Central Bank (ECB) continued to raise interest rates during the month, which also contributed to a decline in the bond market. For the first time in history, we have seen a decline of more than -10% in both stocks (S&P 500) and bonds (US 10-year Treasuries) since the beginning of the year.
At the September meeting, the Fed announced a third consecutive 75 bp rate hike. Never before in modern U.S. history has monetary policy tightening happened so quickly in such a short period of time. The Fed's recent statements have made it clear that restrictive monetary policy will continue until inflation targets are reached, even if it is at the expense of economic growth. Higher interest rates in the US have been reflected in an appreciation of the US dollar against major global currencies.
Performance of MF Compass Global Trends
Mutual Fund Compass Global Trends finished the month with a price per unit of 1.1504 BGN, which is -8.19% for the month and -28.44% since the beginning of the year.
Price per unit of the fund for the period April 1 2014 – September 30 2022
Performance of MF Compass Euroselect
Mutual Fund Compass Euroselect finished the month with a price per unit of 0.8102 EUR, which is -6.86% for the month and -26.37% since the beginning of the year.
Price per unit of the fund for the period July 16 2018 – September 30 2022
Performance of MF Funds Select-21
Compass Funds Select-21 finished the month with a price per unit of BGN 0.9419, down -3.24% for the month and -8.50% year-to-date.
Price per unit of the fund for the period July 26 2018 – September 30 2022
Read more about the performance of Mutual Fund Compass Global Trends, Mutual Fund Compass Euroselect, and Mutual Fund Compass Funds Select-21 for June, and find out more about the development of the financial markets and the management expectations here.(BG)