Key Takeaways
- • Malcolm Charles, Portfolio Manager on Ninety One's South African Rates team, discussed South Africa's market rebound, the rand's strengthening, and the outlook for Reserve Bank rate cuts in a BusinessTech Business Talk interview with Michael Avery.
- • Publisher summaries state that inflation is anchored near 3%, South African bond yields remain attractive, and the rand has strengthened on solid commodity prices and a weaker US dollar.
- • Charles outlined expected Reserve Bank policy over the next 12 to 18 months and flagged potential positive surprises in the South African National Budget.
- • Charles described the current global backdrop as "Goldilocks" and recommended a "stay calm and carry on yielding" strategy for South African investors.
- • Charles oversees fixed-income portfolios including the Flexible Bond, Dynamic Bond, and Diversified Income strategies, as well as the Fixed Income hedge fund.
Summary
Malcolm Charles, a Portfolio Manager at Ninety One who has been with the firm since 2001, joined BusinessTech's Business Talk program with host Michael Avery to discuss South Africa's market conditions. Charles works on Ninety One's South African Rates team and is responsible for a range of fixed-income portfolios, including the Flexible Bond, Dynamic Bond, and Diversified Income strategies, as well as the Fixed Income hedge fund. Before Ninety One, he worked at African Harvest Fund Managers and Old Mutual Asset Managers.
In the interview, Charles explained how South Africa's market has changed since early 2024 and what is driving the strengthening of the rand. Publisher summaries of the interview state that inflation is anchored near 3%, bond yields remain attractive, and the rand has gained on the back of solid commodity prices and a weaker US dollar. Charles also addressed the outlook for the Reserve Bank over the next 12 to 18 months.
On the fiscal side, Charles highlighted potential positive surprises in the South African National Budget. The article does not provide specific budget figures, so readers should refer to the official budget documents for detailed numbers.
Charles characterised the current global backdrop as "Goldilocks," a term for an environment of moderate growth and contained inflation, and explained what this means for investors. He closed the interview by recommending a "stay calm and carry on yielding" approach for South African investors, arguing that local bonds remain attractive income investments as lower inflation and potential rate cuts come into view.
In the interview, Charles explained how South Africa's market has changed since early 2024 and what is driving the strengthening of the rand. Publisher summaries of the interview state that inflation is anchored near 3%, bond yields remain attractive, and the rand has gained on the back of solid commodity prices and a weaker US dollar. Charles also addressed the outlook for the Reserve Bank over the next 12 to 18 months.
On the fiscal side, Charles highlighted potential positive surprises in the South African National Budget. The article does not provide specific budget figures, so readers should refer to the official budget documents for detailed numbers.
Charles characterised the current global backdrop as "Goldilocks," a term for an environment of moderate growth and contained inflation, and explained what this means for investors. He closed the interview by recommending a "stay calm and carry on yielding" approach for South African investors, arguing that local bonds remain attractive income investments as lower inflation and potential rate cuts come into view.
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