Fund News – June 2024

CADIZ BCI MONEY MARKET FUND

The Cadiz Money Market Fund continues to deliver on its mandate by consistently providing returns that outperform cash. The fund remains strategically positioned to take advantage of elevated interest rates, effectively reinvesting proceeds from maturing investments. Managed within its prescribed mandate constraints, the fund is consistently outperforming its benchmark, the Alexander Forbes Short Term Fixed Interest (SteFI) composite index. Additionally, it diligently ensures the maintenance of adequate liquidity levels while keeping volatility of returns low. 

CADIZ BCI ENHANCED INCOME FUND

The fund saw a diverse range of assets driving positive returns. Floating-rate notes took the lead, significantly contributing to the overall positive performance. Nominal bonds also played a crucial role, further boosting returns for the month. Despite their relatively small exposure, money market instruments contributed positively, while inflation-linked bonds had a negative impact on the monthly return.  The fund achieved positive returns for the month, maintaining its long-standing track record of delivering low volatility returns and focusing on growing wealth while limiting downside risks. Trading activities implemented during the month were driven by cash flows and reinvestment strategies, aligning with the fund’s objective of prudent portfolio management. 

CADIZ BCI ABSOLUTE YIELD FUND

The fund benefitted from its exposure to nominal bonds as they delivered positive returns for the month. Its diversified exposure to floating rate notes also made favourable contributions to performance. Trading activities during the month included the deployment of cash, re-investment of maturing instruments and active duration management to match the investment strategy and investment view. The fund remains actively managed by the team to take opportunities as they present themselves and to manage prevailing risks.