Compass Global Trends ended the month with a price per unit of 1.2088 BGN, which is an increase of 13.27% since the beginning of the year and 2.69% for April. We also observed an upward movement in the leading indexes on stocks globally. Continued growth in financial markets has been driven by the supportive policies of leading central banks, signs of economic recovery in China and expectations of a USA-China deal. An additional stimulus in April was given by the beginning of the reporting season with results for the first quarter of the year. After the forecasts were lowered in the previous reporting season, the companies were facilitated in their efforts to present better-than-expected results.
Among the best performing shares in the fund during the month are those of the companies: the German-based digital payment company Wirecard (+ 19.7% in BGN); the social platform Facebook Inc (+ 16.20% in BGN); the Dutch manufacturer of lithographic machines ASML Holding (+ 10.97% in BGN); Fortinet Inc (+ 11.42% in BGN) offering products and services for network security; and the Chinese online car trading platform Autohome (+ 10.03% in BGN).
The upcoming results of the reporting season for the first quarter of the year are expected to continue to hold the attention of investors in May. However, the reasons for optimism already seem to be largely reflected in market movements since the beginning of the year. This makes the selection of companies key in the formation of a portfolio of shares and the screening of businesses with unique competitive advantages and potential for long-term growth. In this context, the companies in the portfolio of MF Compass Global Trends should continue to perform better than the average market. In the short term, turbulence in financial markets along with the development of key policy issues is not ruled out. The European Parliament elections are coming up in May, as well as more details on the potential USA-China deal. Accordingly, in the presence of market adjustments, the fund's management is ready to add to its exposure of shares at attractive levels.
If you would like to learn more about the presentation of MF Compass Global Trends in April, 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