In recent years, there has been a shift towards “unconstrained” bond and “multi sector” bond funds portfolios. The first category means that such portfolios are constructed with no reference to market...

In recent years, there has been a shift towards “unconstrained” bond and “multi sector” bond funds portfolios. The first category means that such portfolios are constructed with no reference to market capitalization-weight benchmarks. Such an approach to managing bond portfolios would offer managers more flexibility to invest in securities (stocks as well) when they think that they are attractive compared to an indexing approach.