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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

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Victor Mphaphuli

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: 

 

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