RT Journal Article SR Electronic T1 Modeling the Performance of Active Managers in the Euroland Bond Market JF The Journal of Fixed Income FD Institutional Investor Journals SP 32 OP 45 DO 10.3905/jfi.1999.319228 VO 9 IS 1 A1 Mary Fjelstad YR 1999 UL https://pm-research.com/content/9/1/32.abstract AB With the advent of the European Monetary Union on January 1, 1999, historical fixed-income management results became irrelevant. To asses the potential of value–added strategies, this article simulates various European bond management strategies using historical returns from a market that is likely to be similar to the new market – the U.S. bond market. The model assesses the ability of an active manger to add value by successfully selecting between different asset classes, represented by indexes. With successful forecasts 55% of the time, both active–duration management and sector rotation strategies add value. The results also provide some ideas for manager risk control and portfolio monitoring.