Fixed income update: Navigating extraordinary times
In this live-recorded webinar, our Head of Fixed Income, Victor Mphaphuli unpacks his teams investment approach, given recent events such as the credit rating downgrade and the ongoing impact of COVID-19
Victor Mphaphuli
Head of Fixed Income
BCom(Hons)(Economics), GEDP
Victor is regarded as one of the top fixed income fund managers and a key member of STANLIB’s multi-award-winning Fixed Interest team, which is one of the largest in South Africa. He has over 22-year’s industry experience.
Key takeouts
- History shows us that the current volatility is temporary and the situation will normalise once the coronavirus infection rates are under control and stimulus efforts start to take effect
- A low interest rate environment is making it hard for investors to find yield, which means SA bonds are still attractive for those willing to accept the risk
- When SA exits the World Government Bond Index (WGBI), we expect the impact to be largely felt in bond markets and not low risk funds
- The WGBI rebalancing will provide market opportunities
- STANLIB’s Income Fund portfolios are still providing a positive return and we are in a strong position to weather the downturn, while still being able to maximise the opportunities to benefit from a market recovery
Look out for more information about the impact of COVID-19 in our previous webinars accessible
on the links below: