If you think running a passive bond fund is a formulaic task that a robot could do, think again.
When your underlying index is filled with thousands of fixed-income securities, tracking it isn’t exactly a simple task. The crux of the problem: It’s essentially impossible to own every note and bond in the benchmark. If you therefore use a selection of its constituents to replicate the benchmark, you have to continually tweak the characteristics of your optimized portfolio to home in on the performance of the underlying index.
BlackRock Inc.’s Jasmita Mohan and Karen Uyehara know all about it.
Photographer: Marcel Siegle
The two women, who sit next to each other at BlackRock’s San Francisco office, have for the past four years run the world’s biggest bond…
