CADIZ FR MONEY MARKET FUND
The Cadiz FR Money Market Fund continued to fulfil its mandate and delivered competitive returns during August. Short-term interest rates trended lower as market participants continue to scale back expectations of further repurchase rate hikes following the recovery in oil prices and the easing of inflation concerns. The Fund remains strategically positioned with a targeted allocation to high-quality corporate credit aimed at enhancing yield while maintaining full compliance with mandate guidelines and avoiding unnecessary risk. This disciplined approach has enabled the Fund to continue outperforming its benchmark, the Alexander Forbes Short Term Fixed Interest (STeFI) Composite.
CADIZ FR ENHANCED INCOME FUND
The Cadiz FR Enhanced Income Fund’s performance during August was driven primarily by its exposure to nominal bonds, inflation-linked bonds and corporate credit. Government bond yields declined slightly, supporting positive returns from the Fund’s nominal bond holdings. Trading activity during the month was largely driven by cash flows, portfolio positioning and the reinvestment of maturing instruments. The Fund remains well positioned to capitalise on opportunities across both the corporate and government bond markets while maintaining its focus on delivering attractive risk-adjusted returns.
CADIZ FR ABSOLUTE YIELD FUND
The Cadiz FR Absolute Yield Fund’s performance in August was supported by its allocations to nominal bonds, inflation-linked bonds and corporate credit. The Fund’s increased exposure to bonds contributed positively to returns as yields eased during the month. Trading activity focused on deploying cash inflows, rebalancing portfolio exposures and reinvesting proceeds from maturing instruments. The Fund remains actively managed, with a focus on capturing opportunities across fixed income markets while maintaining a disciplined approach to risk management and capital preservation.
CADIZ FR BOND FUND
The Cadiz FR Bond Fund delivered another positive return in August supported by declining bond yields. Performance was driven primarily by the front- and long-end segments of the yield curve, which made a stronger contribution to overall returns. The FTSE/JSE All Bond Index (ALBI) returned 0.69% for the month and 16.61% over the trailing 12-month period. The Fund continues to deliver returns in line with its mandate and remains strategically positioned to capitalise on opportunities across the yield curve while maintaining a disciplined approach to portfolio construction.
