CADIZ BCI MONEY MARKET FUND
The Cadiz BCI Money Market Fund continued to fulfil its mandate and delivered competitive returns during May. Short-term interest rates trended higher throughout the month, culminating in a 25 basis point increase in the repurchase rate by the South African Reserve Bank at month-end. The Fund remains strategically positioned within the short-term investment universe, with a targeted allocation to high-quality corporate credit aimed at enhancing yield while maintaining full compliance with mandate guidelines and avoiding unnecessary risk. This disciplined approach has enabled the Fund to continue outperforming its benchmark, the Alexander Forbes Short Term Fixed Interest (STeFI) Composite.
CADIZ BCI ENHANCED INCOME FUND
The Cadiz BCI Enhanced Income Fund’s performance during the month of May was driven primarily by its exposure to nominal bonds, inflation-linked bonds and corporate credit. Government bond yields declined amid optimism surrounding a potential ceasefire in the Middle East, supporting bond market returns. Strong investor demand for corporate debt also contributed positively to performance. In addition, inflation-linked bonds strengthened as inflation expectations increased. Trading activity was largely influenced by cash flows, portfolio positioning and the reinvestment of maturing instruments. The Fund remains well positioned to capitalise on opportunities across both the corporate and government bond markets while maintaining its focus on delivering attractive risk-adjusted returns.
CADIZ BCI ABSOLUTE YIELD FUND
The Cadiz BCI Absolute Yield Fund’s performance in May was underpinned by its allocations to nominal bonds, inflation-linked bonds and corporate credit. An increased exposure to bonds contributed positively to returns as yields declined during the month, resulting in higher bond valuations. Trading activity focused on deploying available cash, rebalancing the portfolio and reinvesting proceeds from maturing instruments. The Fund remains actively managed, with a focus on capturing opportunities across markets while maintaining a disciplined approach to risk management.
CADIZ BCI BOND FUND
The Cadiz BCI Bond Fund delivered another positive return in May, supported by declining bond yields. Performance was driven primarily by the medium- and long-term segments of the yield curve, which made a strong contribution to overall returns. The FTSE/JSE All Bond Index (ALBI) returned 2.86% for the month and 22.39% over the trailing 12-month period. The Fund continues to deliver returns in line with its mandate and remains strategically positioned to capitalise on opportunities across the yield curve while maintaining a disciplined approach to portfolio construction.
