MFS Meridian Global Equity A1 EUR

Analyst Report
Morningstar's Take
|23/01/2024

by Tim Wong
MFS Global Equity retains the qualities we admire: a pair of insightful portfolio managers who actively look to harness the firm’s extensive research staff while patiently implementing their well-trodden process. Comanagers Roger Morley and Ryan McAllister uphold a long-standing tradition of investing in reasonably priced companies with a steady growth outlook. Morley has strong bona fides over his lengthy involvement here while McAllister’s transition to comanager in 2016 has been as smooth as could be hoped; he’s steadily broadened his knowledge across industries and worked cohesively with Morley. Further, we think the duo utilizes MFS’ broader analyst team very effectively. Their long-term perspective remains paramount in gauging their colleagues’ insights on company and industry-level views, and the portfolio managers’ clear recall of how their historic views have evolved reinforces the consistency of the approach taken.

The methodical approach is straightforward and disciplined and ignores index weightings, as seen in its long-standing skew to industrials and healthcare companies at the expense of commodities and technology. That said, it hasn’t all been plain sailing. Emphasizing valuation has contributed to stock-specific stumbles, owning some companies facing more concerted cyclical pressures than expected. Tension in balancing quality and value is inevitable, so we are heartened that more borderline prospects have generally been among the smaller-sized positions—a tribute to sensible portfolio construction—while missed opportunities in faster-growing firms have never been this strategy’s calling card. Consternation over subpar performance is understandable, though the market’s abandonment of high-flying growth stocks in 2022 was a reminder that styles can shift from favor swiftly. The team has also continued to identify plenty of longer-term winners elsewhere. MFS also has a demonstrated history of putting client interests ahead of its own when it comes to managing capacity in both its Core and Concentrated global equity strategies.

In multiple areas, MFS Global Equity remains a winning proposition.

The primary vehicle from which this strategy’s pillar ratings are derived is MFS Global Equity Trust W, ticker 4532.
 
Morningstar Medalist Rating™We remain highly confident in this strategy’s merits despite some bumpy performance.
To find out how Morningstar rates a fund click here.
Morningstar Pillars
PeopleHigh
ParentHigh
ProcessHigh
 
Morningstar Medalist RatingMorningstar assigns the Medalist Rating to funds that are qualitatively and quantitatively assessed through manager research and algorithmic processes. The assessment turns on three key “pillars” – People, Process, and Parent – that yield an estimate of how well a fund will perform before fees but after adjusting for risk.
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A fim de prover consistência para todos os relatórios fornecidos por diferentes Asset Managers, os data points calculados apresentados são gerados usando uma metodologia de cálculo proprietária da Morningstar, que pode ser conferida com mais detalhes em(https://www.morningstar.com/research/signature)
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