MFS MERIDIAN FUNDS US VALUE A1 USD - Fund overview
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Overview of
MFS MERIDIAN FUNDS US VALUE A1 USD
The fund’s primary investment objective is capital appreciation, with a secondary investment objective of reasonable income, measured in US dollars. We generally seek to outperform the Russell 1000 Value Index with less volatility over a full market cycle, typically three to five years, and to achieve a competitive ranking relative to peers over the same period. Style: US large cap value.
Standard Initial Charge
6.00% –
Fund summary
| Sector |
North America
|
| Product type |
OFFSHORE FUND
|
| Launched |
February, 2002
|
| Size |
£559m
|
| Yield |
0.0%
|
| Charging basis |
–
|
| Dividends paid |
–
|
| Bid price |
892.99p |
Fund Charges
|
Standard Initial charge
|
6.00%
|
|
Initial charge via Bestinvest
|
–
|
|
Additional bid/offer spread
|
0.00%
|
|
Annual management charge
|
1.05%
|
|
Total expense ratio
|
1.05%
|
|
Reduction in yield (10yr)
|
1.05%
|
Bestinvest says
No information available.
Portfolio
| Allocation |
Proportion |
|
|
Equity |
100%
|
|
High yield bonds |
–
|
|
Quality bonds |
–
|
|
Property |
–
|
|
Commodities |
–
|
|
Hedge |
–
|
|
Fund cash |
–
|
|
Allocation
|
Proportion
|
|
|
|
|
UK
|
–
|
|
|
Europe
|
–
|
|
|
Nth America
|
100%
|
|
|
Japan
|
–
|
|
|
Pacific
|
–
|
|
|
Other Equity
|
–
|
|
Allocation
|
Proportion
|
|
|
|
|
Large Caps
|
100%
|
|
|
Mid Caps
|
–
|
|
|
Small Caps
|
–
|
View all performance data for MFS MERIDIAN FUNDS US VALUE A1 USD
Investment process
The fund has a dual emphasis on quality and valuation. The starting point is the constituents of the Russell 1000 index. A "quality" screen cuts this down to 200-300 companies. This quality screen is based on the durability of its business franchise, the level of cash flow it generates over time, the strength of its balance sheet, and a careful evaluation of the management team’s capital allocation policies and decisions.
From here, the team use a disciplined valuation framework — which focuses not only on an investment’s upside potential (looking out 3 to 5 years) but also on how valuation can help provide downside support in the event that things go differently than anticipated — helps to further narrow the universe down to the c.80-100 names owned within the portfolio.
1) Quality assessment – Does the company possess the high-quality attributes we look
for, including a sustainable franchise, a solid/improving balance sheet, attractive free cash
flow generation, and a management team that demonstrates good capital stewardship?
What does its return characteristics look like, and are they improving going forward?
2) Valuation analysis – Is the stock inexpensive in terms of its price/free cash flow,
price/book, price/earnings, price/sales, dividend yield, or any other relevant measure of
valuation? How do these valuations compare versus the company’s history, its peers, and
the overall market and on an absolute basis? A strong emphasis is placed on cash flow
and returns-based methodologies.
High-quality characteristics: Sustainable, durable franchises (Below-average business risk, • robust business model, consistent returns); Significant free cash flow (above-average returns on capital, capital investment discipline); Solid balance sheet (above-average capital position); Strong management teams (proven track record, history of capital stewardship).
Valuation characteristics: Price/free cash flow; Price/book; Price/earnings; Price/sales; Dividend yield