{"id":128189,"date":"2025-10-15T15:14:07","date_gmt":"2025-10-15T19:14:07","guid":{"rendered":"https:\/\/www.bloomberg.com\/professional\/insights\/financial-services\/behind-the-benchmark-dissecting-active-bond-fund-performance-2\/"},"modified":"2025-10-16T11:10:24","modified_gmt":"2025-10-16T15:10:24","slug":"behind-the-benchmark-dissecting-active-bond-fund-performance-2","status":"publish","type":[3762],"link":"https:\/\/www.bloomberg.com\/professional\/insights\/financial-services\/behind-the-benchmark-dissecting-active-bond-fund-performance-2\/","title":{"rendered":"Behind the benchmark: Dissecting active bond fund performance"},"content":{"rendered":"<div  class=\"bbg-row-container\">\n    <section class=\"bbg-row  text--black row-padding--top-compact row-padding--bottom-none bbg-row--full-bg-bleed\" data-anchor='row-69fdc5f7b8408'>\n        \n        \n        <div\n            class=\"bbg-row--content\"\n                    >\n            \n            <p><div\n    class=\"bbg-column bbg-column--width-7\"\n    style=\"\"\n    >\n    <p><div\n    class=\"bbg-spacer bbg-spacer--lg\"\n    >\n<\/div><div\n\tclass=\"bb-wysiwyg\"\n\t\t>\n\t<p class=\"small\"><strong><span style=\"font-size: 14px; letter-spacing: 1px; color: #0062dd;\">ARTICLE<\/span><\/strong><\/p>\n\n<\/div>\n<div\n    class=\"bbg-spacer bbg-spacer--sm\"\n    >\n<\/div>    <h1 class=\"bbg-metadata bbg-metadata--title\">Behind the benchmark: Dissecting active bond fund performance<\/h1>\n<div\n    class=\"bbg-spacer\"\n        style=\"height: 50px !important\"\n    >\n<\/div>    <ul class=\"bbg-categories_list\">\n                    <li>\n                <a href=\"https:\/\/www.bloomberg.com\/professional\/insights\/category\/financial-services\/\" rel=\"category tag\">\n                    Financial Services\n                <\/a>\n            <\/li>\n                    <li>\n                <a href=\"https:\/\/www.bloomberg.com\/professional\/insights\/category\/markets\/\" rel=\"category tag\">\n                    Markets\n                <\/a>\n            <\/li>\n                    <li>\n                <a href=\"https:\/\/www.bloomberg.com\/professional\/insights\/category\/trading\/\" rel=\"category tag\">\n                    Trading\n                <\/a>\n            <\/li>\n            <\/ul>\n<\/p>\n\n<\/div><div\n    class=\"bbg-column bbg-column--width-5\"\n    style=\"\"\n    >\n    <div id=\"\" class=\"wpb_content_element bbg-single-image align-left\">\n    <figure class=\"bbg-single-image__figure\" style=\"max-width:100%\">\n                <img loading=\"lazy\" decoding=\"async\" width=\"1200\" height=\"800\" src=\"https:\/\/assets.bbhub.io\/image\/v1\/resize?width=auto&amp;type=webp&amp;url=https:\/\/assets.bbhub.io\/professional\/sites\/41\/364745101resiz.jpg\" class=\"bbg-single-image__image attachment-full\" alt=\"Stock market movements\" title=\"Stock market movements\" \/>\n        \n            <\/figure>\n<\/div>\n\n\n\n<\/div>\n\n\n                    <\/div>\n    <\/section>\n<\/div>\n\n<div  class=\"bbg-row-container\">\n    <section class=\"bbg-row  text--black row-padding--top-none row-padding--bottom-none bbg-row--full-bg-bleed\" data-anchor='row-69fdc5f7c4349'>\n        \n        \n        <div\n            class=\"bbg-row--content\"\n                    >\n            \n            <p><div\n    class=\"bbg-column bbg-column--width-2\"\n    style=\"\"\n    >\n    \n<\/div><div\n    class=\"bbg-column bbg-column--width-6 bbg-column--m-width-6\"\n    style=\"\"\n    >\n    <p>    <p class=\"bbg-metadata bbg-metadata--date\">October 15, 2025<\/p>\n<div\n\tclass=\"bb-wysiwyg\"\n\t\t>\n\t<p><strong>Pensions &amp; Investments<\/strong><\/p>\n\n<\/div>\n\n<\/div><div\n    class=\"bbg-column bbg-column--width-2 bbg-column--valign-middle bbg-column--m-width-2 bbg-column--s-padding-right-2\"\n    style=\"\"\n    >\n    <div class=\"bb-tts\"\n\tdata-selector=\"main\"\n\tdata-label=\"Speak this page\"\n\tdata-custom-play=\"Play\"\n\tdata-custom-pause=\"Pause\"\n\tdata-custom-stop=\"Stop\"\n\tdata-overlay=\"false\"\n\tdata-invert=\"false\"\n\tdata-no-time=\"false\"\n\tdata-no-button-text=\"false\"\n\tdata-one-button=\"true\"\n\tdata-one-style=\"true\"\n\tdata-hide-stop=\"true\"\n\tdata-voice=\"Gordon\"\n\tdata-pitch=\"1\"\n\tdata-speed=\"1\"\n\tdata-align=\"flex-start\"\n>\n<\/div>\n\n\n<\/div><div\n    class=\"bbg-column bbg-column--width-2\"\n    style=\"\"\n    >\n    \n<\/div>\n\n\n                    <\/div>\n    <\/section>\n<\/div>\n\n<div  class=\"bbg-row-container\">\n    <section class=\"bbg-row  text--black row-padding--top-compact row-padding--bottom-compact bbg-row--full-bg-bleed\" data-anchor='row-69fdc5f7c74c3'>\n        \n        \n        <div\n            class=\"bbg-row--content\"\n                    >\n            \n            <p><div\n    class=\"bbg-column bbg-column--width-2\"\n    style=\"\"\n    >\n    \n<\/div><div\n    class=\"bbg-column bbg-column--width-8\"\n    style=\"\"\n    >\n    <div\n\tclass=\"bb-wysiwyg\"\n\t\t>\n\t<p><i><span style=\"font-weight: 400;\">This article was written by Vikas Jain, Index Quant Research and Yingjin Gan, Head of Index Research at Bloomberg. <\/span><\/i><\/p>\n<p>Over the past few decades, index-linked (passive funds) have experienced substantial growth, particularly in equities, where research consistently shows that most active managers fail to outperform their benchmarks after accounting for fees.<\/p>\n<p>As of 2024, passive funds represented 62% of U.S. equities AUM and 44% of fixed income AUM\u2014up from 40% and 24% in 2014, respectively. Unlike equities, where passive funds have been displacing active ones, both active and passive bond strategies continue to attract flows. Notably, actively managed bond ETFs made up 36% of fixed income ETF inflows in 2024, more than double their share from the previous year.<\/p>\n<p>This continued interest in active fixed income strategies reflects the view that bond markets \u2014particularly credit\u2014 are less efficient, offering opportunities for skilled managers to add value. However, fixed income has received far less analytical scrutiny than equities, mainly due to limited data availability. Our new study, Behind the Benchmark, helps fill that gap by examining U.S. active fixed income fund performance across four key categories: Aggregate, Government, Investment Grade Corporate, and High Yield. We not only assess fund returns versus benchmarks but also evaluate the drivers behind performance\u2014asking whether excess returns stem from true skill or are largely compensation for systematic risk.<\/p>\n\n<\/div>\n\n\n<\/div>\n\n\n                    <\/div>\n    <\/section>\n<\/div>\n\n<div  class=\"bbg-row-container\">\n    <section class=\"bbg-row  text--black row-padding--top-none row-padding--bottom-none bbg-row--margin-top-compact bbg-row--margin-bottom-compact bbg-row--full-bg-bleed\" data-anchor='row-69fdc5f7c97b1'>\n        \n        \n        <div\n            class=\"bbg-row--content\"\n                    >\n            \n            <div\n    class=\"bbg-column\"\n    style=\"\"\n    >\n    <div class=\"bbg-interstitial\" aria-label=\"interstitial\" tabindex=\"0\">\n\t<style>\n\t\t.bbg-interstitial #card_1.bbg-card_hasCta{\n\t\t\tbackground: url(https:\/\/assets.bbhub.io\/image\/v1\/resize?width=auto&amp;type=webp&amp;url=https:\/\/assets.bbhub.io\/professional\/sites\/41\/Interstitial_bg.png);\n\t\t\t\tbackground-repeat: no-repeat;\n\t\t\t\tbackground-position: center center;\n\t\t\t\tbackground-size: cover;\n\t\t\tpadding: 104px;\n\t\t\t\n\t\t\t\n\t\t}\n\t\t.bbg-interstitial #card_1.bbg-card_hasCta .bbg-card__content, .bbg-interstitial #card_1.bbg-card_hasCta .bbg-card__content p{\n\t\t\tcolor:white;\n\t\t}\n\t\t@media (max-width: 768px) {\n\t\t\t.bbg-interstitial #card_1.bbg-card_hasCta{\n\t\t\t\tpadding: 80px 32px;\n\t\t\t}\n\t\t}\n\t\t@media (max-width: 480px) {\n\t\t\t.bbg-interstitial #card_1.bbg-card_hasCta{\n\t\t\t\tpadding: 80px 18px;\n\t\t\t}\n\t\t}\n\t<\/style>\n\t<div class=\"wpb_content_element bbg-card  bbg-card-dark bbg-card_hasCta has_interstitial\" id=\"card_1\" data-card_type=\"no_image\">\n  \n  \n  <div class=\"bbg-card__innerwrapper\">\n    <div class=\"bbg-card__content\">\n      \n      \n                      <h3 class=\"bbg-card__title\">Tailored indices insights and invitations in your inbox<\/h3>\n      \n              <div class=\"bbg-card__wysiwyg bb-wysiwyg\"><p>Sign up<\/p>\n<\/div>\n          <\/div>\n\n          \n<div\n  id=\"cta_206545687332715787\"\n  class=\"wpb_content_element bbg-cta icon icon-arrow\">\n  <style>\n    \n    \n    \n  <\/style>\n  <div\n    class=\"bbg-cta-link link-holder\"\n    data-links-type=\"cta-links\">\n    <p class=\"bbg-cta-p right\">\n      <a\n        class=\"bbg-cta-link link interstitial_cta\"\n        href=\"https:\/\/www.bloomberg.com\/professional\/explore\/indices-insights-tailored-to-your-interests\/\"\n        target=\"\"\n        rel=\"\"\n        data-section-name=\"\"\n                role=\"button\"\n        aria-label=\"Learn more\"\n        >\n                <\/a>\n    <\/p>\n  <\/div>\n<\/div>\n\n      <\/div>\n\n  <\/div>\n\n<\/div>\n\n\n<\/div>\n\n\n                    <\/div>\n    <\/section>\n<\/div>\n\n<div  class=\"bbg-row-container\">\n    <section class=\"bbg-row  text--black row-padding--top-compact row-padding--bottom-none bbg-row--full-bg-bleed\" data-anchor='row-69fdc5f7ceebe'>\n        \n        \n        <div\n            class=\"bbg-row--content\"\n                    >\n            \n            <p><div\n    class=\"bbg-column bbg-column--width-2\"\n    style=\"\"\n    >\n    \n<\/div><div\n    class=\"bbg-column bbg-column--width-8\"\n    style=\"\"\n    >\n    <div\n\tclass=\"bb-wysiwyg\"\n\t\t>\n\t<h2>At first glance, active bond funds seem to deliver<\/h2>\n<p>When measured against their stated benchmarks, many active bond funds\u2014particularly in the Aggregate and Corporate segments\u2014appear to outperform with positive median excess returns. However, performance in Government and High Yield categories are less encouraging: most funds underperform, with negative median excess returns and low success rates.<\/p>\n<p>This divergence highlights the unique challenges within each sector. In the Government category, active strategies often rely on duration timing, which our data suggest is difficult to execute successfully and consistently. In High Yield, the dominant approach is fundamental security selection\u2014similar in philosophy to active equity management. Yet, as with equities, our research suggests that this rarely produces durable alpha.<\/p>\n\n<\/div>\n<div id=\"\" class=\"wpb_content_element bbg-single-image align-center\">\n    <figure class=\"bbg-single-image__figure\" style=\"max-width:100%\">\n                <img loading=\"lazy\" decoding=\"async\" width=\"1119\" height=\"718\" src=\"https:\/\/assets.bbhub.io\/image\/v1\/resize?width=auto&amp;type=webp&amp;url=https:\/\/assets.bbhub.io\/professional\/sites\/41\/figure-1-Active-Fund-Performance-by-Horizon.png\" class=\"bbg-single-image__image attachment-full\" alt=\"figure 1 - Active Fund Performance by Horizon\" title=\"figure-1-Active-Fund-Performance-by-Horizon\" srcset=\"https:\/\/assets.bbhub.io\/image\/v1\/resize?width=auto&amp;type=webp&amp;url=https:\/\/assets.bbhub.io\/professional\/sites\/41\/figure-1-Active-Fund-Performance-by-Horizon.png 1119w, https:\/\/assets.bbhub.io\/image\/v1\/resize?width=auto&amp;type=webp&amp;url=https:\/\/assets.bbhub.io\/professional\/sites\/41\/figure-1-Active-Fund-Performance-by-Horizon.png 552w, https:\/\/assets.bbhub.io\/image\/v1\/resize?width=auto&amp;type=webp&amp;url=https:\/\/assets.bbhub.io\/professional\/sites\/41\/figure-1-Active-Fund-Performance-by-Horizon.png 800w, https:\/\/assets.bbhub.io\/image\/v1\/resize?width=auto&amp;type=webp&amp;url=https:\/\/assets.bbhub.io\/professional\/sites\/41\/figure-1-Active-Fund-Performance-by-Horizon.png 768w, https:\/\/assets.bbhub.io\/image\/v1\/resize?width=auto&amp;type=webp&amp;url=https:\/\/assets.bbhub.io\/professional\/sites\/41\/figure-1-Active-Fund-Performance-by-Horizon.png 168w\" sizes=\"auto, (max-width: 1119px) 100vw, 1119px\" \/>\n        \n            <\/figure>\n<\/div>\n\n<div\n\tclass=\"bb-wysiwyg\"\n\t\t>\n\t<h2>Digging deeper: alpha or systematic risk?<\/h2>\n<p>To better understand what\u2019s behind active bond fund performance, we conducted both correlation analysis and multi-factor regressions. The findings were consistent:<\/p>\n<ul>\n<li>Nearly all active funds take on more credit risk than their benchmarks<\/li>\n<li>This higher credit exposure is structural and persistent over time<\/li>\n<li>Most outperformance is attributable to credit risk, after controlling for systematic risk, outperformance largely disappears<\/li>\n<\/ul>\n<p>For example, rolling 1-year excess returns in Aggregate funds track closely with credit markets. This suggests that systematic credit exposure\u2014not manager skill\u2014is the primary driver of performance.<\/p>\n\n<\/div>\n<div id=\"\" class=\"wpb_content_element bbg-single-image align-center\">\n    <figure class=\"bbg-single-image__figure\" style=\"max-width:100%\">\n                <img loading=\"lazy\" decoding=\"async\" width=\"1042\" height=\"577\" src=\"https:\/\/assets.bbhub.io\/image\/v1\/resize?width=auto&amp;type=webp&amp;url=https:\/\/assets.bbhub.io\/professional\/sites\/41\/figure-2-Rolling-1y-Excess-Returns-for-Aggregate-Funds.png\" class=\"bbg-single-image__image attachment-full\" alt=\"figure 2 - Rolling 1y Excess Returns for Aggregate Funds\" title=\"figure-2-Rolling-1y-Excess-Returns-for-Aggregate-Funds\" srcset=\"https:\/\/assets.bbhub.io\/image\/v1\/resize?width=auto&amp;type=webp&amp;url=https:\/\/assets.bbhub.io\/professional\/sites\/41\/figure-2-Rolling-1y-Excess-Returns-for-Aggregate-Funds.png 1042w, https:\/\/assets.bbhub.io\/image\/v1\/resize?width=auto&amp;type=webp&amp;url=https:\/\/assets.bbhub.io\/professional\/sites\/41\/figure-2-Rolling-1y-Excess-Returns-for-Aggregate-Funds.png 552w, https:\/\/assets.bbhub.io\/image\/v1\/resize?width=auto&amp;type=webp&amp;url=https:\/\/assets.bbhub.io\/professional\/sites\/41\/figure-2-Rolling-1y-Excess-Returns-for-Aggregate-Funds.png 800w, https:\/\/assets.bbhub.io\/image\/v1\/resize?width=auto&amp;type=webp&amp;url=https:\/\/assets.bbhub.io\/professional\/sites\/41\/figure-2-Rolling-1y-Excess-Returns-for-Aggregate-Funds.png 768w, https:\/\/assets.bbhub.io\/image\/v1\/resize?width=auto&amp;type=webp&amp;url=https:\/\/assets.bbhub.io\/professional\/sites\/41\/figure-2-Rolling-1y-Excess-Returns-for-Aggregate-Funds.png 192w\" sizes=\"auto, (max-width: 1042px) 100vw, 1042px\" \/>\n        \n            <\/figure>\n<\/div>\n\n<div\n\tclass=\"bb-wysiwyg\"\n\t\t>\n\t<p>We quantify this this through regression analysis: regressing equal-weighted active returns on the yield curve and credit factor. For active Aggregate funds, we found an average annual excess return of 50 basis points. However, after adjusting for yield curve and credit factors, only 15 basis points remained as unexplained \u201calpha.\u201d The rest was attributed almost entirely to credit exposure (47bps), with an R-squared of 88%.<\/p>\n\n<\/div>\n<div id=\"\" class=\"wpb_content_element bbg-single-image align-center\">\n    <figure class=\"bbg-single-image__figure\" style=\"max-width:100%\">\n                <img loading=\"lazy\" decoding=\"async\" width=\"1039\" height=\"649\" src=\"https:\/\/assets.bbhub.io\/image\/v1\/resize?width=auto&amp;type=webp&amp;url=https:\/\/assets.bbhub.io\/professional\/sites\/41\/figure-3-Fund-level-Active-Return-Attribution.png\" class=\"bbg-single-image__image attachment-full\" alt=\"figure 3 - Fund level Active Return Attribution\" title=\"figure-3-Fund-level-Active-Return-Attribution\" srcset=\"https:\/\/assets.bbhub.io\/image\/v1\/resize?width=auto&amp;type=webp&amp;url=https:\/\/assets.bbhub.io\/professional\/sites\/41\/figure-3-Fund-level-Active-Return-Attribution.png 1039w, https:\/\/assets.bbhub.io\/image\/v1\/resize?width=auto&amp;type=webp&amp;url=https:\/\/assets.bbhub.io\/professional\/sites\/41\/figure-3-Fund-level-Active-Return-Attribution.png 552w, https:\/\/assets.bbhub.io\/image\/v1\/resize?width=auto&amp;type=webp&amp;url=https:\/\/assets.bbhub.io\/professional\/sites\/41\/figure-3-Fund-level-Active-Return-Attribution.png 800w, https:\/\/assets.bbhub.io\/image\/v1\/resize?width=auto&amp;type=webp&amp;url=https:\/\/assets.bbhub.io\/professional\/sites\/41\/figure-3-Fund-level-Active-Return-Attribution.png 768w, https:\/\/assets.bbhub.io\/image\/v1\/resize?width=auto&amp;type=webp&amp;url=https:\/\/assets.bbhub.io\/professional\/sites\/41\/figure-3-Fund-level-Active-Return-Attribution.png 173w\" sizes=\"auto, (max-width: 1039px) 100vw, 1039px\" \/>\n        \n            <\/figure>\n<\/div>\n\n<div\n\tclass=\"bb-wysiwyg\"\n\t\t>\n\t<p>Fund level regressions and attribution confirm the same pattern, both the mean and median fund\u2019s outperformance can be mostly explained by the credit factor exposures. Finally, nearly 90% of active Aggregate funds show persistent positive credit exposure. This widespread, consistent tilt toward credit helps explain why conventional benchmarking tends to overstate true alpha.<\/p>\n<h2>The benchmark matters: aligning benchmarks with actual risk<\/h2>\n<p>A major contributor to overstated alpha is <strong>benchmark misalignment<\/strong>. Many active funds are benchmarked to the Bloomberg U.S. Aggregate Index yet take on significantly more credit risk.<\/p>\n<p>To address this, we introduced \u201ctechnical benchmarks\u201d tailored to each fund\u2019s actual risk exposures. The results are revealing: success rates fell sharply, and median excess returns turn negative. In short, much of the outperformance disappears once credit exposure is properly accounted for. For example, we find that only 22% of Aggregate funds overperform their technical benchmark over the last 10 years.<\/p>\n\n<\/div>\n<div id=\"\" class=\"wpb_content_element bbg-single-image align-center\">\n    <figure class=\"bbg-single-image__figure\" style=\"max-width:100%\">\n                <img loading=\"lazy\" decoding=\"async\" width=\"1009\" height=\"348\" src=\"https:\/\/assets.bbhub.io\/image\/v1\/resize?width=auto&amp;type=webp&amp;url=https:\/\/assets.bbhub.io\/professional\/sites\/41\/figure-4-Comparisons-vs-Stated-and-Technical-Benchmark-Aggregate-Active-Funds.png\" class=\"bbg-single-image__image attachment-full\" alt=\"figure 4 - Comparisons vs Stated and Technical Benchmark - Aggregate Active Funds\" title=\"figure-4-Comparisons-vs-Stated-and-Technical-Benchmark-Aggregate-Active-Funds\" srcset=\"https:\/\/assets.bbhub.io\/image\/v1\/resize?width=auto&amp;type=webp&amp;url=https:\/\/assets.bbhub.io\/professional\/sites\/41\/figure-4-Comparisons-vs-Stated-and-Technical-Benchmark-Aggregate-Active-Funds.png 1009w, https:\/\/assets.bbhub.io\/image\/v1\/resize?width=auto&amp;type=webp&amp;url=https:\/\/assets.bbhub.io\/professional\/sites\/41\/figure-4-Comparisons-vs-Stated-and-Technical-Benchmark-Aggregate-Active-Funds.png 552w, https:\/\/assets.bbhub.io\/image\/v1\/resize?width=auto&amp;type=webp&amp;url=https:\/\/assets.bbhub.io\/professional\/sites\/41\/figure-4-Comparisons-vs-Stated-and-Technical-Benchmark-Aggregate-Active-Funds.png 800w, https:\/\/assets.bbhub.io\/image\/v1\/resize?width=auto&amp;type=webp&amp;url=https:\/\/assets.bbhub.io\/professional\/sites\/41\/figure-4-Comparisons-vs-Stated-and-Technical-Benchmark-Aggregate-Active-Funds.png 768w, https:\/\/assets.bbhub.io\/image\/v1\/resize?width=auto&amp;type=webp&amp;url=https:\/\/assets.bbhub.io\/professional\/sites\/41\/figure-4-Comparisons-vs-Stated-and-Technical-Benchmark-Aggregate-Active-Funds.png 192w\" sizes=\"auto, (max-width: 1009px) 100vw, 1009px\" \/>\n        \n            <\/figure>\n<\/div>\n\n<div\n\tclass=\"bb-wysiwyg\"\n\t\t>\n\t<h2>Implications for investors and fiduciaries<\/h2>\n<p>Here are a few takeaways those evaluating active fixed income strategies:<\/p>\n<ul>\n<li><strong>Most active performance is beta, not alpha.<br \/>\n<\/strong>Persistent exposure to credit risk\u2014not dynamic skill\u2014is the primary driver of excess returns.<\/li>\n<\/ul>\n<ul>\n<li><strong>Benchmark mismatch can mislead<\/strong>.<br \/>\nEvaluating funds against risk-aligned technical benchmarks yields a more accurate picture of true value-add.<\/li>\n<\/ul>\n<ul>\n<li><strong>Excess credit risk can undermine diversification.<br \/>\n<\/strong>Many active bond funds take on more credit risk than benchmarks suggest, making them behave more like pro-cyclical assets during market stress\u2014potentially reducing their effectiveness as defensive allocations in multi-asset portfolios.<\/li>\n<\/ul>\n<ul>\n<li><strong>Passive strategies can replicate active outcomes<\/strong>.<br \/>\nSystematic exposures in active funds can often be matched using lower-cost passive or credit-tilted approaches.<\/li>\n<\/ul>\n<p>While some active fixed income managers may demonstrate genuine skill and deliver alpha, our findings suggest that such cases are the exception rather than the norm. Identifying these managers requires a disciplined approach\u2014supported by rigorous attribution analysis and benchmarks that accurately reflect true risk exposures.<\/p>\n<p><a href=\"https:\/\/www.bloomberg.com\/professional\/insights\/markets\/behind-the-benchmark-dissecting-active-bond-fund-performance\/\"><em>Behind the Benchmark<\/em><\/a> brings transparency to a historically opaque segment of the investment landscape. By aligning benchmarks with actual exposures and isolating systematic drivers, we enable more informed decisions, clearer assessments of manager skill, and stronger alignment with portfolio objectives.<\/p>\n\n<\/div>\n<div\n\tclass=\"bb-wysiwyg\"\n\t\t>\n\t<p><i><span style=\"font-weight: 400;\">This article was written by Vikas Jain, Index Quant Research and Yingjin Gan, Head of Index Research at Bloomberg and is reproduced from <a href=\"https:\/\/www.pionline.com\/opinion\/pi-opinion-active-bond-performance\/\" target=\"_blank\" rel=\"noopener\">Pensions &amp; Investments<\/a>.<\/span><\/i><\/p>\n\n<\/div>\n\n<\/div>\n\n\n                    <\/div>\n    <\/section>\n<\/div>\n\n<div  class=\"bbg-row-container\">\n    <style>section[data-anchor=row-69fdc5f7da52e]::before {\n\t\t\t\tbackground-color: #f4f4f9;\n\t\t\t}<\/style>\n    <section class=\"bbg-row bg--custom-color  bg--f4f4f9 text--black bbg-row--full-bg-bleed\" data-anchor='row-69fdc5f7da52e'>\n        \n        \n        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