It’s generally been a terrible few years for humans who pick bonds for a living.
Clients both big and small have sent them a sobering message that they’re usually not worth the money they’re paid. Investors have yanked billions of dollars from active, higher-fee strategies, or those guided by human decision-making, while pouring cash into cheaper funds designed to mirror indexes.
Ditching Human Decisions
Investors have broadly favored passive funds over active ones in the past year.