Active approaches unlock bond returns

Bond index funds offer investors the chance to gain exposure to global markets at a low cost. These markets behave differently from equity markets and give active bond managers access to thousands of securities that may increase diversification and returns. Active bond managers can use different strategies to take advantage of the opportunities these markets offer, adding value without as much more risk. They can opt for less-traded securities that offer risk-adjusted returns, choose to go overweight in countries with improving conditions, or explore credit markets where spreads are likely to...