MFS Meridian Global Concntr A1 EUR |
by Tim Wong
Few rivals can match the array of strengths MFS Concentrated Global Equity possesses. Its insightful portfolio managers astutely prioritize business quality while staying level-headed on valuations here, acting patiently and prudently. Comanagers Roger Morley and Ryan McAllister uphold a long-standing tradition of investing in reasonably priced companies with a steady growth outlook. Morley has burnished his credentials over his lengthy tenure, while McAllister’s transition to comanager in 2016 has been as smooth as could be hoped, having steadily broadened his knowledge across industries. The pair utilize the shop’s broader analyst team very effectively. Their long-term perspective remains pivotal when gauging their colleagues’ insights, their assessment of a company’s vulnerabilities and competitive advantages providing ample reward over time. Clear recall of how their historic views have evolved reinforces the consistency of this approach. This strategy’s straightforward, disciplined patience sees turnover typically below 20% per year as the managers allow time for an investment case to unfold and a company’s underlying business strength to overcome more transient pressures. Holding 20-30 stocks amplifies idiosyncratic risks, with sizable allocations to industrials and healthcare at the expense of commodities and information technology contributing to significant deviations from the index. Importantly, the strategy’s exacting standards on quality have ensured few costly mistakes through the cycle. Shorter-term weakness is undeniable and includes a few stock missteps. However, styles can fall out of favor swiftly, with faster-growing companies never really this strategy’s focus. This strategy has far more to commend it otherwise. MFS also has a demonstrated history of putting clients ahead of its own when it comes to managing capacity both here and in the team’s broader Core capability. MFS Concentrated Global Equity retains significant competitive strengths that spur our ongoing belief in its merits. The primary vehicle from which this strategy's pillar ratings are derived is MFS Concentrated Global Equity Trust W, ticker 19689. |
Morningstar Pillars | |
People | High |
Parent | High |
Process | High |
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