SA Fixed Income
Funds investing in government, state-owned enterprise and corporate bonds across the South African yield curve, managed with explicit views on duration, curve positioning and liquidity.
South African Fixed Income and Credit
Unconventional thinking in fixed income and credit.
Vachellia Investments is a specialist investment manager centred on fixed income and credit markets in South African and select African economies. We combine a deep knowledge of these markets with meticulous analysis and portfolio construction to the benefit of the clients we serve. We pride ourselves on our ability to do this while maintaining the agility and flexibility of an independent boutique.
About Us
An independent manager, built deliberately.
Vachellia Investments was conceived by Lethabo Leoka, whose career spans almost 20 years covering fixed income and credit markets in investment management as well as investment banking. His vision was to establish an investments boutique where fixed income and credit investing would take centre stage, rather than being overshadowed by other asset classes, as is common with many incumbent asset managers.
He has since been joined by Magugu Ntubuzi and Koketso Setshogoe, two talented young professionals specialising in fixed income and credit assets, respectively.
Our Services
Four capabilities, one specialisation.
SA Credit
Funds focused on listed, unlisted, and structured credit, appraised name by name, with pricing that reflects the risk actually being taken rather than a rating given by an agency.
SA Flexible Income
Funds that combine our best views in SA fixed income and credit markets, allowing us to allocate actively and opportunistically in the most favourable instruments at any given time, all while minimising risk and protecting capital.
Pan-African Credit
Funds investing in bonds, loans and other credit instruments issued by high-quality African corporates, governments and projects, with a focus on key industries in the largest and most established economies on the continent.
Investment Philosophy
Return is what you are paid. Risk is what you actually own.
We build portfolios from the bottom up, priced security by security, and take risk only where we are convinced we are being paid enough for it.
Vachellia’s philosophy is that bonds, credit, structured products and money markets are potentially all interchangeable. They differ only in their relative exposure to three types of market risk: liquidity risk, credit risk and duration.
Instead of the “siloed” approach to these fixed income asset types taken by most asset managers, Vachellia’s position is that once a client has communicated their appetite to the three risks mentioned above, as well as their return expectations, we possess the capability of allocating in a flexible and tactical manner between the fixed income asset types, based on the relative value and risk they offer at any given point in time.
In order to enhance this investment style, Vachellia believes in investing in an active and dynamic manner, including using derivative instruments for hedging as well as return enhancement.
Why Vachellia
Six reasons institutions look at us differently.
Independent Thinking
We are not tethered to a house view or to legacy positioning. Every idea is examined on its own merits, and we are willing to reach a different conclusion to the market.
Institutional Expertise
Our experience was built inside large, well-established managers. We bring that discipline, process and governance with us, without inheriting the inertia.
Disciplined Risk Management
Risk is budgeted before it is taken. Position sizing, liquidity and drawdown parameters are agreed in advance, not renegotiated in the middle of a difficult market.
Research-Driven Process
Primary research, our own credit models and direct engagement with issuers sit behind every position. Nothing enters a portfolio on someone else’s conviction.
African Market Expertise
We understand the issuers, the regulation and the liquidity realities of South African credit, and we apply the same lens, carefully, to selected markets elsewhere on the continent.
Long-Term Value Creation
We invest to compound through cycles, and we build the business alongside clients who measure us the same way. Prudence and ambition are not in tension here.
Our Team
Specialists in fixed income and credit.
Lethabo Leoka
Managing Director and Portfolio Manager
BCom, BCom (Hons) – University of the WitwatersrandMSc Finance – Birkbeck, University of LondonCFA, FRM
Magugu Ntubuzi
Fixed Income Analyst and Associate Portfolio Manager
BCom (Actuarial Science) – University of Cape Town
Koketso Setshogoe
Credit Analyst and Associate Portfolio Manager
BBusSc Finance with Accounting (Hons) – University of Cape Town
Contact Us
Speak to our team.
For enquiries about our fixed income and credit capabilities, write to us directly and we will get back to you.