MFS Investment Management has launched MFS Meridian Funds – Euro Credit Fund.

This new fund seeks to outperform the Bloomberg Barclays Euro-Aggregate Corporate Index over a full market cycle.

The launch extends MFS fixed income product range, which includes global credit, US credit, high yield and emerging market debt strategies.

The fund is co-managed by Pilar Gomez-Bravo, director of fixed income Europe, and Andy Li, portfolio manager – fixed income UK. Institutional portfolio manager Owen Murfin will also participate in research and strategy discussions and work closely with clients on articulating portfolio strategy and positioning.

The fund’s investment objective is total return with an emphasis on current income. It is based on the belief that credit securities display persistent inefficiencies, meaning it takes into consideration technical and structural factors across global credit markets to help predict future trends.

The fund mainly invests (at least 70 percent) in euro-denominated investment-grade corporate debt instruments. It may also invest in below-investment-grade debt instruments, government and government-related debt instruments, securitised instruments and non-euro-denominated debt instruments.  

Matt Weisser, managing director and head of European wholesale distribution, commented: “Corporate bonds are the largest category of assets within European fixed income and as such represent a key building block for our clients. In a sustained low-interest environment, we believe that corporate credit is an attractive asset class for investors seeking income.”

As at February 28, 2019, MFS manages US$456.9 billion in assets on behalf of individual and institutional investors worldwide.