Over the past month, the price per share of MF Compass Global Trends decreased by nearly 2% compared to the end of July, reaching 1.1535 BGN. For the same period, the leading stock indexes in all geographical regions also decreased. The main reason for the negative market sentiment during the month was the deepening trade conflict between the United States and China. USA President Donald Trump has increased tensions with the possibility of an additional 15% customs on the remaining 300billion USD in Chinese goods. In response, China also announced customs, which will take effect on September 1st and December 15th.

In August, the largest increase in shares among the companies in the portfolio of MF Compass Global Trends was noted by: Equinix Inc (+ 11.95% in BGN) which manages and leases data centers, the Chinese company offering lessons for school-age children TAL Education Group (+ 11.81% in BGN), American Tower Corp. (+ 9.91% in BGN) and Cellnex Telecom (+ 7.41% in BGN) managing telecommunication towers, as well as the company for online reservations of overnight stays and trips Booking Holdings (+5.32 % in BGN).

 Important meetings of the ECB (scheduled for September 12) and the US Federal Reserve (scheduled for September 18) are coming up next month. The US and European monetary policy guidelines will be crucial for investors in the context of the USA-China trade war and slowing economic performance. The existence of multiple risks related to global trade relations and economic growth justifies the volatility of financial markets. The management of MF Compass Global Trends is ready to limit short-term fluctuations in the value of the portfolio while pursuing its strategy of investing in quality businesses with potential for long-term growth.

If you would like to learn more about the presentation of MF Compass Global Trends in July, 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