Peter Doherty: Why active bond investors have the edge over passive

Most seasoned investors will have a reasonable grasp of the difference between passive investment funds, which broadly mirror the performance of one or more stockmarket indices, and a fund where the manager and investment team make investment decisions based on forensic company balance sheet research - plus, of course, a host of other factors that influence the hands-on fund management process. We are often asked by clients about the types of bonds we choose to invest in - for example, what attracts us to certain ones over others? Also, why are we convinced actively-managed bond funds wi...