MFS Investment Management has launched a European short-maturity fixed income fund.
The MFS Meridian Funds – Euro Credit Short Term Bond fund will mostly hold investment-grade corporate bonds and euro-denominated quasi-sovereign debt instruments, which mature in less than five years.
The fund, which will be co-managed by Pilar Gomez-Bravo and Andy Li, will combine bottom-up credit research with active portfolio construction, in order to outperform the the Bloomberg Euro-Aggregate Corporate 1-3 Year index over a full market cycle.
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Matt Weisser, managing director – Europe, at MFS Investment Management, said: “With yields in euro short-maturity investment-grade credit now looking more attractive than they have for some time, many clients are reassessing how they can generate income while keeping interest-rate sensitivity in check.
“Shorter-dated credit can play an important role in that balance, offering access to high-quality income with typically lower volatility than longer-dated bonds.
“Strong demand for this part of the market reflects that need, and we believe the fund gives clients a disciplined, actively managed approach to capturing the opportunity.”
The fund broadens the firm’s European fixed income range, with MFS having launched its Euro Credit fund in 2019.
