CADIZ BCI MONEY MARKET FUND
The Cadiz Money Market Fund continued to meet its mandate and delivered competitive returns for the month of October. Although interest rates continued to decline 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. The fund has continued to outperform its benchmark, the Alexander Forbes Short Term Fixed Interest (STeFI) Composite Index.
CADIZ BCI ENHANCED INCOME FUND
In October, the Cadiz Enhanced Income Fund’s performance was primarily driven by its exposure to corporate credit. The South African government bond yield curve continued to flatten, resulting in solid returns from government bonds, which supported the credit exposure in enhancing overall portfolio yield. Although credit spreads remain tight and demand for corporate paper continues to exceed supply, the Fund successfully accessed select opportunities in this space to further boost returns. Trading activity during the month was largely driven by cash flows, portfolio positioning, and the reinvestment of maturing assets.
CADIZ BCI ABSOLUTE YIELD FUND
The Cadiz Absolute Yield Fund’s performance in October was largely driven by its allocation to bonds, supported by exposure to credit and inflation-linked instruments. A long position in bonds contributed positively to returns as the South African Government bond yield curve continued to flatten. 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 Cadiz Bond Fund delivered a positive return in October, supported by improved economic sentiment that fueled a recovery in the bond market. The strongest performance came from the medium- and long-term segments of the yield curve. The FTSE/JSE All Bond Index (ALBI) returned 2.56% for the month, bringing its year-to-date performance to 16.94%. The Fund continues to deliver returns consistent with its mandate and remains strategically positioned to capture opportunities across the yield curve.
