Cadiz Fund News – August 2025
CADIZ BCI MONEY MARKET FUND
In July, the Cadiz Money Market Fund continued to meet its mandate and delivered competitive returns. Although interest rates declined further during the month, the fund remains strategically positioned within the short-term investment landscape. A key element of the fund’s approach is its selective exposure to high-quality corporate credit, which supports yield enhancement without compromising risk controls or mandate compliance. Over time, the fund has demonstrated consistent outperformance relative to its benchmark, the Alexander Forbes Short Term Fixed Interest (STeFI) Composite Index, while maintaining strong liquidity and low return volatility.
CADIZ BCI ENHANCED INCOME FUND
The Cadiz Enhanced Income Fund benefitted from its exposure to both nominal and inflation-linked bonds, as declining nominal and real yields in July supported performance. The fund’s duration was tactically increased to capitalise on this trend, contributing positively to returns. Although credit spreads remain tight and demand for corporate paper continues to exceed supply, the fund was able to access select opportunities in this space, further enhancing yield. Trading activity during the month was primarily driven by cash flows, portfolio positioning, and reinvestment of maturing assets.
CADIZ BCI ABSOLUTE YIELD FUND
In July, the Cadiz Absolute Yield Fund’s performance was largely driven by its allocation to nominal bonds, with most gains coming from the longer end of the yield curve as nominal yields declined. Additional support came from the fund’s exposure to inflation-linked bonds and corporate credit. Throughout the month, trading activity 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 July, supported by declining bond yields and improved local sentiment. Easing geo-political uncertainty and a more favourable inflation outlook contributed to the recovery in the bond market. The strongest performance came from the long end of the yield curve, which rebounded from the weaker tone seen earlier in the year. The FTSE/JSE All Bond Index (ALBI) also posted a positive return for the month, bringing its year-to-date performance to 9.53%. The fund remains strategically positioned to capture further opportunities across the yield curve.
