At a meeting between a portfolio manager and a prospective client, the portfolio manager stated that her firms bond investment strategy is a conservative one The portfolio manager told the prospective client that she constructs a portfolio with a forward looking tracking error that is typically between 250 and 300 basis points of a client specified bond index Explain why you agree or disagree with the portfolio managers statement that the portfolio strategy is a conservative one

Question: At a meeting between a portfolio manager and a prospective client, the portfolio manager stated that her firms bond investment strategy is a conservative one.

At a meeting between a manager and a prospective client, the manager stated that her firm’s bond investment strategy is a conservative one. The manager told the prospective client that she constructs a with a forward-looking tracking error that is typically between 250 and 300 basis points of a client-specified bond index. Explain why you agree or disagree with the manager’s statement that the strategy is a conservative one.

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