MFS Global Equity Trust

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About this Fund

Fund Detail

PDS https://informedinvestor.com.au/view/pds/100140-2023-06-04-02:41.pdf
FUND MANAGER MFS Investment Management
ASX Code
INVESTMENT STYLE The Trust aims to seek capital appreciation over the long term by investing in a diversified portfolio of global shares.
INVESTMENT PROFILE The Trust aims to outperform its benchmark over a full market cycle before taking into account fees and expenses.
BENCHMARK MSCI World Index (with net dividends reinvested before fees) measured in AUD
FUND SIZE MSCI World Index (with net dividends reinvested before fees) measured in AUD
FEES 0.77% p.a.



Benefits of Investing in the MFS Global Equity Trust

  • Style Consistency: MFS seeks to identify investments that provide above average, sustainable growth and returns at attractive valuations relative to the market.
  • Seeks Strong Risk Adjusted Returns: MFS believes that stock selection, based upon Fundamental Research, has been the primary source of added value. (For an explanation of "Fundamental Research" please see the Glossary in the Reference Guide.)
  • Global Research: Integrated research is the foundation of MFS' approach to investing. A culture based on collaboration and teamwork enables MFS to have a globally integrated network of research analysts and portfolio managers based in Boston and eight other sites around the world (Hong Kong, London, Mexico City, São Paulo, Singapore, Sydney, Tokyo and Toronto) that serves as the basis for all investment decisions.
  • Risk Management: MFS focuses on the sustainability of growth and returns and on downside risk, which MFS believes helps to avoid investing in stocks whose growth promises may prove too good to be true.
  • Efficient Portfolio Management: MFS' size as a firm provides the depth of resources and access to company management required to be a successful global manager while, with its quantitative research capabilities, MFS is able to quickly and efficiently seek to take advantage of opportunities across all market capitalisation ranges.

Risk Level


There is a risk investors may lose some or all of their initial investment. Higher risk investments tend to fluctuate in the short term but can produce higher returns than lower risk investments over the long term.

Investor Suitability

The Trust is designed for investors seeking the potential for capital appreciation over the longer term by investing in a diversified portfolio of global shares (unhedged).




Key Features

Fund overview

An investment in the Trust provides the benefits of professional research and management, diversification and liquidity.

MFS has a strong collaborative approach to building better insights for clients. These insights are derived from three guiding principles - integrated research, global collaboration, and active risk management.

The firm believes the application of these principles and the combined insights across fundamental equity, quantitative and credit perspectives is what enables it to deliver sustainable, long-term returns for clients.

The firm's key competitive advantage is its team-based, collaborative culture. Strong firm culture develops through years of experience and through the collective contributions of the people who enjoy working for the organisation. MFS believes this culture is a catalyst for its results and distinguishes it from its competitors.

Investment objective

The Trust aims to seek capital appreciation over the longer term by investing in a diversified portfolio of global shares and aims to outperform its Benchmark over a full market cycle, before taking into account fees and expenses.

Investment style and approach

Companies with sustainable above-average growth and returns, and whose prospects are not reflected in their valuation, will outperform over the long run. The value of compounding high returns on capital and above-average growth rates over long time periods is often underestimated by the market. Through fundamental analysis, MFS seeks to identify enduring businesses, focusing on operational risks and the long-term potential for change. MFS considers whether the valuation reflects the long-term growth and returns of the company, and to what extent it adequately incorporates risk.

Currency Hedging is rare and usually only undertaken for defensive purposes and as a part of the security selection process. Therefore, the Trust does not systematically employ currency management techniques and is thus considered to be "unhedged.


How we invest your money

In selecting investments for the Trust, MFS is not constrained by any particular investment style. MFS may invest the Trust's assets in the stocks of companies it believes to have above average earnings growth potential compared to other companies (growth companies), in the stocks of companies it believes are undervalued compared to their perceived worth (value companies), or in a combination of growth and value companies. MFS uses an active bottom-up investment approach to buying and selling investments for the Trust. Investments are selected primarily based on fundamental analysis of individual issuers and their potential in light of their financial condition, and market, economic, political, and regulatory conditions. Factors considered may include analysis of an issuer's earnings, cash flows, competitive position, and management ability.

Investments held

The Trust invests primarily in common stock and related securities of US and non-US issuers. The Trust will not invest in issuers that MFS believes are principally engaged in the manufacturing of tobacco products. The Trust may invest in issuers located in Emerging Markets countries (as defined by MFS). The Trust may utilise Derivatives as a routine means to accomplish exposures to various equities or markets.

Asset Allocation

  • Global Equities: 90-100%
  • Cash and cash equivalents: 0-10%