Why Bond Funds Benefit from Active Management
Plus, how to find a fairly priced bond fund.
Audio is streamed directly from the publisher (afp-956310-injected.calisto.simplecastaudio.com) as published in their RSS feed. Play Podcasts does not host this file. Rights-holders can request removal through the copyright & takedown page.
Show Notes
Active management can still win in the bond market. Opportunities abound for active managers to best their passive peers and benchmarks. And here’s why: they have access to tools, asset classes, and flexibility that their competition does not. Right now, the bond market is ripe for them to succeed. A deep dive in Morningstar Magazine’s first quarter 2026 issue makes the case why everyday investors should consider adding active bond funds to their portfolio. Eric Jacobson, senior principal of fixed-income strategies for Morningstar, and Maciej Kowara, principal of fixed income strategies for Morningstar, co-authored the article.
Subscribe to Morningstar Magazine to read independent investment research for free.
On this episode:
00:00:00 Welcome
00:01:33 Why Active Management Still Works in Bonds
00:02:25 Who Trades in the Bond Market
00:03:18 Finding Inefficiencies in Fixed Income
00:04:26 When Passive Bond Funds Can Hurt Investors
00:06:01 How to Spot a Good Active Bond Fund
00:08:10 What Gives Active Managers an Edge
Watch more from Morningstar:
These Top Tech Stocks Can Stand Up to AI Risks
2 Cautionary Tales from Private Equity and Private Credit Markets
Are You Ready for Tax Day? Here’s What You Need to Know Before You File
Follow Morningstar on social:
Facebook https://www.facebook.com/MorningstarInc/
X https://x.com/MorningstarInc
Instagram https://www.instagram.com/morningstarinc/?hl=en
LinkedIn https://www.linkedin.com/company/morningstar/posts/?feedView=all
Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.