Finding Bond Funds That Can Beat Their Benchmarks After Fees

The typical active fixed-income fund manager struggles to beat the fund’s benchmark after fees. We’ve looked at historical excess returns distributions for funds in 25 Morningstar fixed-income categories to understand what's driving chronic underperformance.

How success ratios—the percentage of funds that both survive and outperform—reflect investors’ experiences
Which categories see greater impact on net returns from cost rather than manager skill
Why active and passive funds struggle to keep up with their indexes

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