US-based asset manager MFS Investment Management has launched a euro credits short term bond fund, an actively managed European fixed income strategy with a shorter maturity profile and holdings typically maturing under five years.
The fund seeks to deliver total return, with an emphasis on current income but also considering capital appreciation, measured in euros. It invests primarily in investment-grade corporate and quasi-sovereign debt instruments denominated in, or hedged into, euros. It aims to outperform the Bloomberg Euro-Aggregate Corporate 1-3 Year Index over a full market cycle.
‘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,’ said Matt Weisser, Managing Director for Europe.
‘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 is built on MFS’ long-standing investment approach, which combines bottom-up credit research, disciplined risk management, and active portfolio construction. Ideas are generated across the firm’s global fixed income platform, where portfolio managers, analysts, and traders share perspectives on credit fundamentals, relative value, liquidity, and market risk.
The fund is co-managed by Portfolio Managers Pilar Gomez-Bravo and Andy Li.. Owen Murfin serves as Institutional Portfolio Manager, supporting research and strategy discussions and working with clients on portfolio positioning. It is domiciled and regulated in Luxembourg, structured as a SICAV S.A., and registered for sale in 15 countries.
