M&G - Fundamental truths

M&G's steady, conservative investment style during the years leading up to 2007 may have resulted in solid, if unspectacular, returns, but this methodical approach has served the firm well during the credit crisis. Rather like the proverbial tortoise, M&G has ended up leaving many of its rivals - the hares that initially sped ahead - now trailing in its wake. Head of the fixed-income division, Simon Pilcher, talks to Sarfraz Thind about how the firm's fundamental approach has been key to its recent success

M&G is not in the business of taking undue risks. The UK fund manager is amongst the more conservative players in the credit markets, something that has allowed it to maintain a steady performance in the years of plenty, and given it a stellar performance in the year of crisis. Last year M&G's £12 billion fixed-income fund returned 2% over the benchmark.

This is the strongest performance that Simon Pilcher, chief executive of the fixed-income division, can remember in his 10 years at the firm.