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Where Are the Benchmark-Beating Bond Funds?

Miriam Sjoblom, CFA (miriam.sjoblom@morningstar.com)

Longtime readers of Morningstar's research have heard us relentlessly beat the drum for funds that charge low fees. For all our manager research analysts' combing through historical portfolios, scrutinizing performance data, and grilling portfolio managers to formulate views on a fund's People and Process Pillars, there's no surer indicator that a fund has an advantage over its peers than a cheap price tag. Expenses are especially crucial to consider for fixed-income funds, because returns between bond funds tend to be more compressed.