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. 

 
 

In this report, you will learn:

  • 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