%0 Journal Article %A Mary Fjelstad %T Modeling the Performance of Active Managers in the Euroland Bond Market %D 1999 %R 10.3905/jfi.1999.319228 %J The Journal of Fixed Income %P 32-45 %V 9 %N 1 %X 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. %U https://jfi.pm-research.com/content/iijfixinc/9/1/32.full.pdf