With a price per one share of 1.1732 BGN, MF Compass Global Trends recorded a yield of 1.56% for the month. Over the same period, leading stock indexes in most geographic regions also rose, with the broad US S&P 500 index reaching a new all-time high. Despite optimism over the last month, geopolitical risks remain high, which, together with the current phase of the economic cycle, justifies a relatively more conservative approach. Accordingly, the fund started the month with a lower exposure to shares (effective 50%) in order to reduce the risk and to initiate positions at attractive levels in the case of a market correction.

Among the impressive results for the past quarter, with the most significant growth of their shares in October, stood out: the Chinese company offering extracurricular lessons and trainings TAL Education (+22.06% in BGN), the manufacturer of graphics processors NVIDIA (+12.74% in BGN), the French luxury goods company Kering (+10.18% in BGN), the manufacturer of iPhone Apple (+8.43% in BGN) and the Chinese online shopping platform JD.com (+7.80% in BGN).

Although central banks continue their supportive monetary policy, a number of risks still remain. Apart from the signing of the first phase of the US-China agreement, the parameters of which are yet to be clarified, the geopolitical risk remains high. Along with the slowdown in the largest global economies, financial market uncertainty seems to continue. Following the strategy of MF Compass Global Trends for investments in shares of companies with long-term growth potential, the fund's management focuses on quality businesses resistant to the influence of short-term external factors.

If you would like to learn more about the presentation of MF Compass Global Trends in September, 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 PDF format.

With respect,

Compass Invest JSC team