Cadiz Fund News – July 2025
CADIZ BCI MONEY MARKET FUND
The Cadiz Money Market Fund remained aligned with its mandate and continued to deliver competitive returns for the month of June. While interest rates continued to decline, the fund is well positioned within the short-term investment space. 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. 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 Enhanced Income Fund benefitted from its exposure to nominal bonds as yields continued to decline in June. The fund’s duration was increased to take advantage of this trend, which contributed positively to performance. Credit spreads and corporate paper remain tight, with demand continuing to outstrip supply. Nonetheless, the fund was able to participate in select opportunities within this space, further supporting returns. Trading activity during the month was primarily driven by cash flows, portfolio positioning, and reinvestments, all in line with the fund’s objectives.
CADIZ BCI ABSOLUTE YIELD FUND
The Cadiz Absolute Yield Fund’s exposure to nominal bonds was the primary driver of performance in June, further supported by a decline in bond yields amid easing global trade tensions. Additional contributions came from the fund’s holdings in inflation-linked bonds and corporate credit. Trading activity during the month focused on cash deployment, portfolio positioning, and reinvestment of maturing instruments. Duration sensitivity was increased in line with the investment strategy and prevailing market conditions. The fund remains actively managed to capitalise on opportunities and manage risk effectively.
CADIZ BCI BOND FUND
Supported by declining bond yields, the Bond Fund delivered a positive return for the month of June. Local factors such as easing political uncertainty and a favourable inflation outlook also contributed to the improved market sentiment. The bulk of the return came from the long end of the yield curve, as the market recovered from the negative tone seen earlier in the year. The FTSE/JSE All Bond Index (ALBI) posted a positive return for the month and is up 6.62% year-to-date. The fund participated in this rally and remains strategically positioned to take advantage of further opportunities across the curve.
