MFS IM launches a multi-sector European fixed income fund

MFS Investment Management expands its range of European fixed income today with the launch of the MFS Meridian Funds - Euro Opportunistic Bond Fund, an active management multisector strategy that can invest from public and corporate debt in euros to high yield and certain structured products.

It is the second European fixed income fund that the manager incorporates this year, and strengthens a global offer of 12 fixed income funds for clients outside the United States. Matt Weisser, general manager for Europe, links it to strong customer demand.

A core of quality debt with room to seek more profitability

The fund aims to generate a total return in euros. The core of the portfolio is made up of high-quality public and corporate debt securities denominated in euros, although managers can invest in high yield, emerging debt and securitized debt when they consider that valuations offer attractive opportunities.

Stock selection is a key source of return and is supported by fundamental and relative value analysis. The team can also adjust the sectoral and geographical exposure and the duration of the portfolio according to market developments, to diversify the sources of return and avoid depending excessively on a single factor.

We have seen strong demand from clients and, as of today, the market offers attractive yields along with high-quality credit. In an environment that can change quickly, we believe that the Fund's flexibility allows us to resort to different potential sources of return, instead of depending on just one.

Matt Weisser, general manager for Europe, MFS Investment Management

The fund is measured against the Bloomberg Euro Aggregate (EUR) index and is managed by Andy Li and Annalisa Piazza, with Owen Murfin as institutional portfolio manager.

Three European fixed income strategies in the MFS range

The new vehicle arrives after the launch in June of the MFS Meridian Funds - Euro Credit Short Term Bond Fund. Along with the MFS Meridian Funds - Euro Credit Fund, available since 2019, the manager now has three European fixed income strategies for the continent's investors.

We are delighted to continue strengthening our European fixed income offering at a time we consider especially attractive for this asset class.

Matt Weisser, General Manager for Europe, MFS Investment Management

In broader terms, MFS's global fixed income offering comprises 12 actively managed funds available to wholesale and retail clients outside the United States. It covers global credit strategies, emerging market debt, US corporate debt and public debt, backed by more than five decades of experience in fixed income.