Cadiz Fund News – September

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. We are mindful of the dynamics in the interest rate environment as we navigate the top of the interest rate cycle and the looming rate cutting cycle. The fund is managed within its prescribed mandate constraints and is consistently outperforming its benchmark, the Alexander Forbes Short Term Fixed Interest (SteFI) composite index. In addition, it diligently ensures the maintenance of adequate liquidity levels, while keeping volatility of returns low.

CADIZ BCI ENHANCED INCOME FUND

There was a number of corporate issuances in August, and as a result, the fund was able to pick up some yield-enhancing instruments. The fund also benefited from its exposure to nominal bonds and a broad range of money market instruments. The fund maintained its long-standing track record of delivering low volatility returns while focusing on growing wealth and limiting downside risks. Trading activities during the month were driven by cash flows and reinvestments, aligning with the fund’s objectives, while maintaining prudent portfolio management.

CADIZ BCI ABSOLUTE YIELD FUND

The fund maintained its exposure to nominal and inflation-linked bonds, from which the fund benefited during the month as these asset classes delivered positive returns. The fund also retains a diversified exposure to floating rate notes, which contributed favourably to performance. Trading activities during the month included deploying cash, reinvesting maturing instruments, and managing duration to align with the investment strategy and the market outlook. The fund remains actively managed by the team to capitalise on opportunities and manage prevailing risks.