When we analyze returns of our mangers we always assess their performance against an index and their peer group. Now, studies have shown that even the top performing managers will underperform their
benchmark over extended periods. Recently, many of the pure bond managers have been underperforming the Barclay’s Aggregate Bond Index. At first blush, many believe that this index is filled with
mostly corporate bonds. However, this is absolutely not the case.
According to research from BlackRock, the current composition of the index looks more like a Government Bond Index, not a corporate …