Active bond managers have outperformed passive over the last ten years in a variety of market conditions.* The more challenging the market environment, the more investors need an active approach to help them achieve their objectives.

Research indicates that passive strategies may make sense for equities, but it tells a different story for bonds. While the data may not support an active equity manager beating the S&P, a  high percentage of active managers outperform their indexes within fixed income categories.

Bonds are different from equities for multiple reasons: investors have varying objectives, trading dynamics differ, new issues are more significant, and return profiles of individual bonds are far more skewed.

Active management within fixed income is especially important in today’s market environment, which is marked by low starting yields and the potential for rising interest rates.