After determining the appropriate asset allocation to meet Lucinda Kennedy's needs, Richard Bulloch, CFA, invests a portion of Kennedy's assets in two fixed-income investment funds:

Trinity Index Fund: A passively managed portfolio of global bonds designed to track the Barclays Global Aggregate Bond (LGAB) Index using a pure bond indexing strategy. The management fee is 15 basis points annually.

Montego Global Bond Fund: An actively managed portfolio of global bonds designed to outperform the LGAB net of fees. The management fee is 50 basis points annually.

Six months after investing in these funds, Kennedy and Bulloch review the performance data shown in the following exhibit:

Kennedy makes the following statements regarding her fixed-income investments:

a. "The Trinity Index Fund is being managed well."

b. "I expected that, as an active manager, Montego would outperform the index; therefore, the fund should be sold."

Determine whether you agree or disagree with each of Kennedy's statements. Justify your response with one reason for each statement.