MFS Meridian Funds European Value: buena relación volatiidad - rentabilidad

Trading activity over the quarter included the initiation of two new positions:
Willis Towers Watson, a multinational risk management, insurance brokerage and advisory company. We find the business attractive given a high level of revenue recurrence and consolidated supplier base. We recognise the near term could be challenging given the impact of COVID-19; however, the long-term structural drivers of demand for risk solutions and advice remain intact. Additionally, the proposed merger with Aon should enhance the customer value proposition and long-term competitive positioning. 
Meggitt, a UK-based international engineering company involved in the design and manufacture of high performance components and sub-systems for aerospace, defense and other specialist markets. In our view, the company has a strong market share, operates in highly regulated markets creating barriers to entry and pricing power. In addition, the valuation looked compelling.

Other activity during the period included additions to some of our existing positions where we see long-term conviction and valuation support, as well as building position size in some of the more recent names that were introduced in the portfolio, includingPhilips, Danone and Burberry.

No positions were exited during the quarter, although we trimmed some of our existing positions that had performed strongly and where valuations looked extended, or in order to manage position size, includingAveva, SAP, Deutsche Wohnen and Spirx-Sarco.

We continue to keep a close eye on any valuation inefficiencies that might arise and are prepared to take advantage of opportunities as they emerge, focusing on companies that have the ability to grow their earnings sustainably and have minimal balance sheet leverage or liquidity needs.

The investment team takes a bottom-up, fundamental approach to investing and sector positioning is thus an output of stock selection.

Looking across the portfolio, we continue to maintain a relative overweight position in the consumer staples sector, although our absolute exposure has been reduced. We have been cognisant that some of the names we held had performed very strongly and valuations had started to look extended, prompting us to trim some positions whilst adding to stocks that we believe have the quality and durability characteristics that we like, yet the market has failed to recognise.

Carta de seguimiento del fondo: https://www.mfs.com/content/dam/mfs-enterprise/mfscom/products/prp/prp_evf_a1eur.pdf