Income in an Uncertain World: Can Local Bonds Keep Delivering?

We recently held a webinar, in partnership with Currency News, where an expert panel unpacked the forces shaping global macroeconomic markets and their implications for South African bonds, the rand and income-focused portfolios.

The session was moderated by Giulietta Talevi, Co-Founder of Currency News, and featured James Turp, Portfolio Manager: Fixed Income at Ninety One, and Nico Katzke, Head of Portfolio Solutions at Satrix.

Navigating Global Uncertainty

The discussion took place against a backdrop of heightened geopolitical risk, energy market disruptions and renewed volatility across asset classes. While bonds are often regarded as defensive or stable, the panel highlighted that fixed income assets are not immune to market shocks, particularly amid uncertainty around inflation expectations and interest rate paths.

Risk and Return in Fixed Income

A key theme throughout the conversation was the nature of risk in bond investing. While government bonds are often treated as risk-free in theory, the panel noted that interest rate risk, inflation risk and currency movements can all materially affect returns over shorter time horizons.

The South African Bond Market

Looking locally, the panel discussed positive real yield levels in South African bonds within the context of moderating inflation expectations.

Income Strategies and Portfolio Construction

The panel also explored how income strategies can provide stability within portfolios during periods of market stress.

Watch The Recording:

Watch the full webinar here.

The session qualifies for Continuous Professional Development (CPD) points for eligible advisers. You can watch the full webinar here.

Disclaimer: 

Satrix Managers (RF) (Pty) Ltd is a registered and approved Manager in Collective Investment Schemes in Securities. Collective investment schemes are generally medium- to long-term investments. With Unit Trusts, Exchange Traded Funds (ETFs) and Actively Managed ETFs (AMETFs) the investor essentially owns a “proportionate share” (in proportion to the participatory interest held in the fund) of the underlying investments held by the fund. With Unit Trusts, the investor holds participatory units issued by the fund while in the case of ETFs and AMETFs, the participatory interest, while issued by the fund, comprises a listed security traded on the stock exchange. ETFs and AMETFs are registered as a Collective Investment and can be traded by any stockbroker on the stock exchange, LISP platforms and or via online trading platforms. ETFs and AMETFs may incur additional costs due to being listed on the JSE. Past performance is not necessarily a guide to future performance, and the value of investments / units may go up or down. A schedule of fees and charges, and maximum commissions are available on the Minimum Disclosure Document or upon request from the Manager. Collective investments are traded at ruling prices and can engage in borrowing and scrip lending. Should the respective portfolio engage in scrip lending, the utility percentage and related counterparties can be viewed on the ETF and AMETF Minimum Disclosure Document. AMETFs are ETFs which are actively traded by a Portfolio Manager to adjust the AMETF holdings and asset allocation with the aim to outperform the benchmark. AMETFs differ from ETFs which only track indices. The Manager does not provide any guarantee, either with respect to the capital or the return of a portfolio. The index, the applicable tracking error and the portfolio performance relative to the index can be viewed on the ETF and AMETF Minimum Disclosure Document and/or on https://satrix.co.za/products.