A passive bond portfolio manager's objective is to get as close to the index return as possible by mimicking the bonds in the index and matching their duration with the understanding that due to management expenses their return will be slightly less than the index. An active bond portfolio manager would attempt to at least meet the index return and outperform it. Outperforming an index on a risk adjusted basis implies using a risk adjusted measurement such as the Sharpe ratio to compare the manager's performance to the index which is not normally done when comparing the manager's performance to an index. In a liabilities based benchmark the portfolio manager's objective is to at least match the value of the liabilities when they come due. | 
