MFS Investment Management (MFS) has launched the MFS Meridian Funds – Euro Credit 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, which is domiciled and regulated in Luxembourg, structured as a SICAV S.A. and is available to retail investors in Singapore, seeks to deliver total return, with an emphasis on current income but also considering capital appreciation, measured in euros, according to MFS.

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.

Matt Weisser, managing director, Europe 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.”

The fund is built on MFS’s 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.

It is co-managed by portfolio managers Pilar Gomez-Bravo and Andy Li, who together have more than 45 years of industry experience. Owen Murfin is institutional portfolio manager, supporting research and strategy discussions and working with clients on portfolio positioning.

Portfolio positioning is informed by views on sectors, credit quality, duration, and the yield curve, supported by fundamental research and quantitative risk analysis. The aim is to build a diversified portfolio in which risk is intentional, balanced, and aligned with the fund’s objective.