Broadly speaking, investor specifications include:

Global bonds are usually a small part of an overall portfolio added for both return and diversification. The strategic asset allocation for the portfolio is made up of benchmarks that both define the asset class and provide a performance target that each investment manager strives to outperform. Return objectives are often expressed in terms of the benchmark return, e.g., benchmark return plus 100 basis points over a market cycle. The return objectives and risk tolerances will indicate not only the most appropriate benchmark, but also the most suitable investment management style. Investors who are primarily concerned with diversification may wish to place tight limits on the size of positions taken away from the benchmark to ensure divers....