MFS Investment Management (MFS IM) has launched a global equity fund which will invest in companies thought to be undervalued in relation to their intrinsic value.
Co-managed by portfolio managers Benjamin Stone and Pablo de la Mata, the MFS Meridian Funds – Global Intrinsic Fund aims to “add value through a bottom-up stock selection process,” according to the firm.
Its goal is to create attractive risk-adjusted returns over a full market cycle, “with a focus on potential downside risk by “investing in equity securities of companies of any size domiciled in developed markets, with the option of also investing in emerging market companies.”
From the portfolio management team’s perspective, intrinsic value investing 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”.
According to MFS IM’s head of European wholesale distribution, Matt Weiiser, although equity markets have bounced back from the sharp sell-off late in 2018, “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 added.
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