A bond fund’s benchmark can provide insight into what a portfolio may invest in and the risk and return characteristics it may exhibit. Selecting the right benchmark is often the starting point when allocating a portion of a client’s portfolio to fixed income, but understanding how the portfolio actually compares to that benchmark almost always requires further digging.
In this episode, Chris Aleman and Head of Fixed Income Mike Sanders take a closer look at fixed income benchmarks, including the Bloomberg Aggregate Bond Index, how portfolios may deviate from their benchmarks in pursuit of outperformance, and how advisors can assess whether a portfolio’s risks and return characteristics actually align with a client’s needs.
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