MFS MERIDIAN US VALUE I1 GBP
Style: US large cap value
ANNUAL MANAGEMENT CHARGE
Prices as at 29 Nov 2023.
We don’t currently provide commentary on this fund.
Past performance is not an indication of future performance.
Capital at risk.
|Dividends paid||Accumulation units only|
|Standard Initial Charge||0%|
|Initial Charge Via BestInvest||0%|
|Additional Bid/Offer Spread||0%|
|Annual Management Charge||0.75%|
|Ongoing Charges Figure||0.82%|
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
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Past performance is not a guide to future performance. View full risk warning