. In January 2020, you have constructed a fixed income portfolio for your client (according to his needs) with two bond investment funds:

Orix Global Bond Funds (OGBF), is a passively managed fund tracking International Bonds Index (IBI). Sonari Index Fund (SIF), is an actively managed bond portfolio and its designed to beat the IBI.

The performance review of your client's bond portfolio shows that six months return for IBI, OGBF and SIF are 3.25%, 3.55% and 3.10%. He made the following two statements:

i."OGBF is a well-managed fund."

ii."Although, I expected that SIF to outperform IBI, Alas! The fund should be divested."

State if you agree or disagree with each of your client's statements and provide one reason for each of your answer in accordance with the bond portfolio management strategies.