MFS Investment Management has announced the launch of MFS Meridian Funds - Contrarian Value fund. A new unconstrained global equity fund unafraid to engage in controversial areas of the market to identify businesses experiencing operating difficulties or going through challenging transitions.
The fund seeks to buy businesses trading at a discount to their intrinsic value and where a margin of safety exists on the price paid and a strong balance sheet provides enough time for the thesis to play out.
With an investment objective of long-term capital appreciation, the performance target of the fund is to outperform the MSCI World Value Index over full market cycles. The fund is concentrated, generally holding less than 50 securities.
The fund is managed by portfolio manager Anne-Christine Farstad, who is responsible for all buy and sell decisions and portfolio construction. Taking a bottom-up, research-intensive approach, the fund typically considers deep-value ideas, restructurings or quality compounders with a problem. Each security is screened for value, but also for change, which is arguably more difficult and requires a dedicated team of global analysts familiar with the appropriate businesses and industries.
Commenting on the launch, Matt Weisser, managing director and head of European Wholesale Distribution for MFS Investment Management, said: "In our view, there are exceptional opportunities for investors willing to consider a differentiated approach and take a long-term view. We believe the current debate around growth versus value creates a false dichotomy; the real market anomaly is around the valuation of stability versus value — and today value appears cheap in both absolute and relative terms."
Contrarian Value fund is domiciled and regulated in Luxembourg and structured as a Sicav S.A. It is registered in 14 countries across Europe.