This is a sponsored insight from M&G Investments, celebrating their recognition at Asian Private Banker’s 13th Asset Management Awards for Excellence 2026.

M&G Investments was honoured at the APB awards, reflecting its commitment to disciplined, client-focused fixed income strategies. In this interview, Richard Ryan, co-head of fundamental fixed income, shares his perspective on what truly sets successful investors apart, how his team approaches risk, and explains how M&G’s Total Return Credit Investment Strategy – built on active management, zero-duration positioning, and a focus on credit risk – continues to deliver resilient outcomes even in today’s volatile interest rate environment.

Q1: What defines a competitive edge in fixed income investing, and can you share an example of this philosophy in action?

RR: If you can’t articulate what makes your approach different, you’ll likely deliver the same returns as everyone else. At M&G, our edge is clarity and discipline. We focus on one specific question: Are we getting paid to take the risk of investing in an individual corporate bond issue? That question guides every decision. For example, during Covid, Disney bonds were priced as if the company wouldn’t survive. We assessed fundamentals and saw resilience, not failure – so we acted decisively. Similarly, when tariff headlines hit in April 2025, we focused on real exposures rather than reacting to noise. It’s about filtering out speculation and sticking to fundamentals.

Q2: How does team structure contribute to your edge, and how do you manage risk and maintain conviction?

RR: Unlike more siloed teams, our matrix structure encourages collaboration across strategies. When someone finds a compelling bond, they immediately think which strategies it could fit well with – investment grade, high yield, and multi-asset credit – rather than focus solely on ‘their’ strategy. This ensures all of the strategies we manage benefit from good ideas. 

Additionally, we work really hard not to deviate from our investment principles. Patience and conviction matter most when markets feel uncomfortable – that’s often where the best opportunities lie. Time horizon is a powerful tool to generate alpha; clients may not see immediate results, but long-term decisions tend to pay off.

Risk discipline is central. We constantly ask if we’re still being paid for the risks we take. If not, we exit. Additionally, we rely on diversification to manage risk. As old hands at fixed income investing, we know that sooner or later an investment will go wrong. By keeping the fund’s exposure to each single issuer small, a negative outcome on a single issuer will only have a small impact on fund performance. 

Q3: M&G was awarded the Best Fund Provider – Investment Grade Bond – Global, represented by your Total Return Credit Investment Strategy. What gives this strategy its design edge?

RR: The Total Return Credit Investment Strategy is designed to be flexible, benchmark-agnostic, and focused solely on credit risk. Unlike traditional indices that combine credit and interest rate risk, our strategy typically manages duration to zero. This means returns are driven by credit fundamentals rather than rate movements, reducing volatility and offering genuine diversification. It allows us to allocate across investment grade, high yield, and ABS markets globally, combining our best ideas to deliver resilient income and durable returns -even when conditions are uncomfortable.

Q4: Does a zero-duration approach still work in a declining interest rate environment?

RR: To understand our differentiated approach, we can look at how it has performed during different stages of the interest rate cycle historically. When interest rates fall, Euro and Global IG indices typically benefit from their rates exposure, as bond prices rise – during these periods, the strategy has performed in line with these indices, with returns generated through credit selection and active management rather than from falling yields. 

By contrast, when rates then rise, or yield curves steepen substantially, traditional indices can suffer as bond prices fall. Our strategy, by avoiding interest rate risk, is comparatively insulated from this negative impact and has historically outperformed the indices significantly in rising-rate environments.  

Q5: The strategy prefers European credits over US credits. Why is that? 

RR: We build portfolios entirely from the bottom up, so this is not a strategic preference. It is correct to say, though, that the portfolio currently has a tilt towards Europe over the US. This reflects our view of where we are finding the best opportunities at present, rather than a top-down allocation decision. 

European credit markets have a number of factors in their favour at present. Spreads levels are more attractive than in other markets, and issuers come from a diverse range of sectors. European corporates also tend to maintain conservative balance sheets, which can translate into stronger fundamentals. European credit is an underinvested market and offers good diversification opportunities for international investors.

As an aside, in the brief period of volatility following ‘Liberation Day’, we found some of the most attractive investment opportunities in US credits.

Q6: Any final thoughts on what sets M&G apart and on winning the APB award?

RR: Our edge lies in discipline, collaboration, and long-term thinking. We don’t chase trends; we focus on fundamentals. That’s how we build trust and deliver value.  

We’re honoured to be recognised by Asian Private Banker as Best Fund Provider – Investment Grade Bond (Global). This award validates our disciplined, benchmark-agnostic approach to credit, our commitment to a simple idea: only take the risks we believe clients are properly paid to own; and the performance of our fundamental fixed income strategies under our Multi Asset Credit range.  

We’re also grateful to our clients for their trust in our approach and partnership. 

 

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