Income opportunities remain attractive.

South African fixed-income markets continue to offer attractive real yields relative to many developed markets. While global inflation dynamics and currency volatility remain important drivers of returns, local bonds continue to provide meaningful income opportunities for long-term investors. Cash investments also remain supported by elevated short-term interest rates.

What this means for portfolios: South African fixed income remains an important source of income and diversification, although duration exposure should be managed prudently in a higher-for-longer global interest rate environment.