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CADIZ BCI MONEY MARKET FUND
The Cadiz BCI Money Market Fund continued to deliver on its mandate, producing competitive returns for the month of September. Following the South African Reserve Bank’s decision to keep interest rates unchanged, short-term rates did not decline as much as anticipated. The fund remains strategically positioned to take advantage of opportunities along the interest rate curve. It continues to focus on high-quality corporate credit to enhance yield, while maintaining strict adherence to its mandate parameters and avoiding any 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 BCI Enhanced Income Fund’s performance for September was primarily driven by its exposure to nominal bonds, complemented by allocations to corporate credit and inflation-linked bonds. The fund maintained a strategic position across the medium and long ends of the interest rate curve, enabling it to benefit from the gains realised in these segments during the month. While credit spreads remain tight and demand for corporate paper continues to outstrip supply, the fund successfully identified and accessed select opportunities within this space, contributing to enhanced yield. Trading activity during the month was largely shaped by cash flow dynamics, portfolio positioning, and the reinvestment of maturing assets.
CADIZ BCI ABSOLUTE YIELD FUND
The Cadiz BCI Absolute Yield Fund’s performance for September was primarily supported by its exposure to nominal bonds, complemented by allocations to corporate credit and inflation-linked bonds. Trading activity during the month focused on deploying cash, repositioning the portfolio, and reinvesting proceeds from maturing instruments. Duration exposure was tactically increased in response to market developments and in line with the fund’s strategic outlook. The fund remains actively managed, seeking to capture value opportunities while maintaining a strong emphasis on effective risk management.
CADIZ BCI BOND FUND
The Cadiz BCI Bond Fund once again delivered positive returns for the month of September. Performance was supported by the fund’s long duration positioning and the decline in yields, as markets initially anticipated further monetary easing. The medium and long-term segments of the yield curve were the strongest contributors to performance. The FTSE/JSE All Bond Index (ALBI) also delivered a positive return for the month, bringing its year-to-date performance to 14.02%. The fund remains strategically positioned to capture opportunities across the yield curve, while maintaining a disciplined approach to duration management.
