Bond Management Insights: How Active Bond Managers Outperform Benchmarks in 2025

Actively managed bond portfolios demonstrate significant advantages over the Bloomberg U.S. Aggregate Bond Index and passively-managed funds. By leveraging advanced tools, asset classes, and flexibility in risk management, active bond managers create opportunities for outperformance. This landing page provides highlights and insights from Morningstar’s comprehensive research report to assist investors, advisors, and financial planners in making informed decisions.

Passive indexes like the Bloomberg U.S. Aggregate Bond Index lack the flexibility of actively managed funds. Fixed-income indexing inherently restricts performance opportunities due to its narrower set of tools, whereas active managers often leverage expanded opportunities to outperform consistently.

Download the report now to discover more on these strategies give active managers an advantage over passive investments.