The yield of MF Compass Global Trends at the end of June was 10.13% since the beginning of the year and 3.66% in the last month. For the same period, the leading stock indexes globally reported one of their strongest months. Except for shares, we saw growth in almost all asset classes. The unusual synchronized movement of all asset classes can be seen as a result of the announced intentions for more stimulating measures by the leading central banks. The decrease in interest rates is positive for bonds. At the same time, lower interest rates are expected to prevent economic slowdowns, so the potential for continued growth is positive for the stock market.
In the top 5 of the best performing positions during the month were: GPU manufacturer NVIDIA Corp. (+ 18.80% in BGN), the American company producing DNA sequencing systems Illumina Inc. (+ 17.54% in BGN), the German-based software company Nemetschek AG (+ 15.70% in BGN), the Chinese online shopping platform JD.com Inc. (+ 15.22% in BGN) and Square Inc. (+ 14.72% in BGN) operating in the field of digital payments.
With the decisions on geopolitical risks postponing for now, the leading central banks and their ability to counter the economic slowdown will be a leading factor in investor activity. The reporting season is starting in July with results for the second quarter of 2019 for the companies in the portfolio of MF Compass Global Trends. Analysts' current forecasts are for a decline in corporate profits for the second quarter of the year. The forecasts for the second half of the year will be essential for investors who are positioning their portfolios for the end of the year. In the context of MF Compass Global Trends, the fund's management follows its strategy for selecting companies with the greatest potential for long-term growth. At the same time, due to the increased uncertainty, tactical decisions have been made to limit short-term fluctuations in the value of the portfolio.
If you would like to learn more about the presentation of MF Compass Global Trends in June, as well as get more information about the development of global financial markets and management expectations, please click HERE to view the full newsletter in a PDF format.
With respect,
Compass Invest JSC team