CADIZ BCI MONEY MARKET FUND
The Fund continued to meet its mandate and deliver competitive returns during March. Despite the low-interest rate environment, it remains strategically positioned within the short-term investment universe. The portfolio incorporates a targeted allocation to high-quality corporate credit to enhance yield, while maintaining full compliance with mandate guidelines and avoiding undue risk. As a result, the Fund has sustained its outperformance relative to its benchmark, the Alexander Forbes Short Term Fixed Interest (STeFI) Composite.
CADIZ BCI ENHANCED INCOME FUND
The Cadiz BCI Enhanced Income Fund’s performance was impacted by volatility in both the nominal and inflation-linked bond markets during March. However, the downside was largely mitigated by its exposure to money market instruments and high-quality corporate credit. Trading activity over the period was primarily driven by cash flows, portfolio positioning and the reinvestment of maturing instruments. The Fund remains well positioned to capitalise on opportunities across both corporate and government bond markets.
CADIZ BCI ABSOLUTE YIELD FUND
The Cadiz BCI Absolute Yield Fund’s performance was curtailed by the volatility experienced in both the nominal bond and inflation-linked bond market in March. Downside risk was mitigated by the Fund’s exposure to money market instruments and corporate credit, as well as its shorter duration positioning. Trading activity focused on deploying available cash, rebalancing the portfolio and reinvesting proceeds from maturing instruments. The fund remains actively managed, aiming to capture opportunities across markets while maintaining disciplined risk management.
CADIZ BCI BOND FUND
The local bond market was characterised by heightened volatility and rising yields, as investors responded to geopolitical tensions in the Middle East. The Cadiz BCI Bond Fund was well positioned to limit downside risk by maintaining a lower duration strategy, thereby reducing sensitivity to rising yields. The long end of the nominal bond yield curve proved most susceptible to this volatility. The FTSE/JSE All Bond Index (ALBI) returned -6.81% for the month but remains up 19.24% over the past 12 months. The Fund continues to deliver returns in line with its mandate and remains strategically positioned to capture opportunities across the yield curve.
