CADIZ BCI MONEY MARKET FUND
The Cadiz BCI Money Market Fund continued to fulfil its mandate and delivered competitive returns for December. The fund remains strategically positioned despite the low-interest rate environment. Its approach includes a focused allocation to high-quality corporate credit to enhance yield, while fully adhering to mandate guidelines and avoiding unnecessary risk. As a result, the Fund has continued to outperform 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 largely supported during the month by its exposure to nominal bonds and corporate credit. Bond yields declined amid strong demand for government securities, while continued investor appetite for corporate paper supported further gains in December. Trading activity was largely shaped by cash flows, portfolio positioning, and the reinvestment of maturing assets. The fund remains well positioned to capitalise on opportunities across both the corporate and government sectors.
CADIZ BCI ABSOLUTE YIELD FUND
The Cadiz BCI Absolute Yield Fund’s December performance was mainly driven by its allocation to nominal and inflation-linked bonds, with further support from corporate credit exposure. A long bond position contributed positively as yields continued to decline over the month. Trading activity focused on deploying available cash, adjusting portfolio positioning, and reinvesting proceeds from maturing instruments. The Fund continues to be actively managed to capture opportunities while maintaining disciplined risk management.
CADIZ BCI BOND FUND
The Cadiz BCI Bond Fund enjoyed another good month in December, delivering a positive return supported by improving economic fundamentals that drove a further decline in yields. Performance was again led by the medium and long-term segments of the yield curve. The FTSE/JSE All Bond Index (ALBI) returned 2.75% for the month, lifting its year-to-date gain to 24.24%. The Fund continues to generate returns in line with its mandate and remains strategically positioned to capture opportunities across the yield curve.
