Morningstar has recently published the latest Asset Class Spotlight on Asian, Emerging Markets (EM), High Yield and Strategic fixed income strategies. This asset-class spotlight covers Morningstar Medalists (active and passive) available for sale in Europe (including the United Kingdom), Hong Kong, and Singapore.
Demand for flexible bond funds grew substantially following the financial crisis, largely based on the promise to insulate bond-fund investors from traditional bond-market interest-rate risk while providing returns at least in line with core bond funds. In this paper, Morningstar analysts review how these funds have fared over the longer run and whether they have managed to deliver on their promises.
Our analysts also gauge how feasible it is to passively track the high-yield market. Can a passive approach to high yield deliver excess returns over active peers in the long term?
