CADIZ BCI MONEY MARKET FUND
The Cadiz Money Market Fund continued to meet its mandate and delivered competitive returns for August. Although interest rates declined further during the month, the fund remains strategically positioned within the short-term investment landscape. Its strategy includes a targeted allocation to high-quality corporate credit to enhance yield, while maintaining full compliance with mandate parameters and taking no undue risk. Over the long term, the fund has consistently outperformed its benchmark, the Alexander Forbes Short Term Fixed Interest (STeFI) Composite Index, while preserving liquidity and minimising return volatility.
CADIZ BCI ENHANCED INCOME FUND
The Cadiz Enhanced Income Fund’s performance in August was primarily driven by its exposure to corporate credit, with additional support from allocations to both nominal and inflation-linked bonds, which delivered small positive returns. The short end and belly of the nominal yield curve declined, while the long end priced in additional risk. Credit spreads remain tight, and demand for corporate paper continues to exceed supply; however, the fund was able to access select opportunities in this space, further enhancing yield. Trading activity during the month was largely influenced by cash flows, portfolio positioning, and the reinvestment of maturing assets.
CADIZ BCI ABSOLUTE YIELD FUND
The Absolute Yield Fund’s performance in August was largely driven by its allocation to corporate credit, with additional support from exposure to nominal bonds and inflation-linked bonds. Trading activity during the month focused on deploying cash, repositioning the portfolio, and reinvesting proceeds from maturing instruments. Duration was tactically increased in response to market developments and aligned with the fund’s strategic outlook. The fund remains actively managed, aiming to capture value while effectively managing risk.
CADIZ BCI BOND FUND
The Bond Fund delivered a positive return in August, supported by easing geopolitical uncertainty and an improved inflation outlook, which contributed to the recovery in the bond market. The strongest performance came from the short- and medium-term segments of the yield curve. The FTSE/JSE All Bond Index (ALBI) also posted a small positive return for the month, bringing its year-to-date performance to 10.3%. The fund remains strategically positioned to capture opportunities across the yield curve.
