In a climate marked by economic uncertainty, fluctuating interest rates and evolving political landscapes, fixed-income strategies have emerged as a key focus for institutional investors. Thabo Letlaka, Deputy Chief Investment Officer at EPPF, recently featured on Asset TV’s Fixed Income Masterclass, where he joined a panel of experts to unpack the current dynamics shaping fixed-income investment decisions.

Moderated by Mosidi Modise, the panel also included Adam Ferlin (Portfolio Manager at NinetyOne), Albert Botha (Head of Fixed Income at Ashburton Investments), and René Prinsloo (Portfolio Manager at M&G Investments). Together with Thabo Letlaka, the panellists shared insights on how institutional investors are navigating market turbulence, interest rate volatility and geopolitical shifts while constructing resilient fixed income portfolios.

A Disciplined Approach Amid Market Turbulence

Letlaka provided an overview of how the EPPF is approaching the current tariff-related volatility with caution and clarity. “There’s a lot of volatility out there,” he explained. “The question for us is: how significantly should we change our investment strategy, given recent events and the upward movement in interest rates both locally and globally?”

While some investors might be tempted to react to short-term market movements, Letlaka emphasised that the EPPF maintains its long-term strategic course. “At this point in time, we shouldn’t be making any drastic changes. We continue to monitor developments closely, but tactically, we act only when there’s mispricing or opportunity. We aim to remain agile at the margins, but not reactive.”

This balanced approach reflects the Fund’s focus on capital preservation while seizing selective opportunities that align with its long-term objectives.

Responding to Domestic Political Developments

Letlaka also touched on the role of domestic political developments, particularly those related to the formation of a Government of National Unity (GNU) and their impact on bond markets.

“It has certainly been an interesting ride,” he remarked. “As a pension fund with long-term liabilities, it’s crucial that we look through the political noise. Where there is volatility, there is also opportunity to pick up attractive yields. Around the edges, we’ve made some investments where yields have spiked, but we’re largely taking a wait-and-see approach.”

His comments underscore the EPPF’s philosophy of acting with prudence and measured responsiveness, even during politically sensitive times.

Contributing to Thought Leadership in Institutional Investing

Letlaka’s contribution to the Fixed Income Masterclass is part of the EPPF’s broader commitment to transparency, collaboration and thought leadership within the investment community. As one of South Africa’s largest pension funds, the EPPF continues to demonstrate its ability to navigate complex markets while safeguarding the retirement security of its members.

To watch the full Fixed Income Masterclass, visit Asset TV.