MFS Investment Management has launched MFS Meridian® Funds – Global Intrinsic Value Fund, which is co-managed by Portfolio Managers Benjamin Stone and Pablo de la Mata.
The highly experienced pair has a long track record of managing global and European equity portfolios, including MFS Meridian Funds – European Value Fund.
Intrinsic value investing, from the perspective of the portfolio management team, is about understanding the full context of how a company’s cash flows are generated and using that understanding to develop a durable, reliable and stable notion of a company’s value. This new fund seeks out companies believed to be undervalued relative to their intrinsic value. It invests in equity securities of companies of any size domiciled in developed markets, with the option of also investing in emerging market companies.
The fund aims to add value through a bottom-up stock selection process. The goal is to generate attractive risk-adjusted returns over a full market cycle, with a focus on potential downside risk.
Matt Weisser (pictured), managing director and head of European wholesale distribution for MFS Investment Management, says: “While equity markets have rebounded from the sharp sell-off late last year, many investors are concerned about the risk of a potential reversal, as well as elevated valuation levels for most equity securities.”
“As investors prepare for uncertain times ahead, we believe that a relentless focus on intrinsic value is an investment approach well-suited to managing clients’ capital and generating alpha over the long term,” he adds.