Is active management eroding returns? I see global bond fund is very active and is extremely volatile. Returns less than benchmark most of time. Currency fund hiding as a bond fund?

Good active management should not erode returns in the long-run, it should protect returns and allow for capital appreciation. Depending on the true objective of the Fund, some are positioned to make absolute returns, as opposed to beating a benchmark, as such, each Fund must be assessed by its real investment objective that should be articulated accurately by financial advisors. Global bond funds vary in terms of what instruments it uses – currency, duration and credit are all part and parcel of fixed income, and these days, it would seem increasingly important to manage and hedge out currencies well. Hence, an actively managing currencies may not be a bad thing for a global bond fund.