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The Cadiz BCI Money Market Fund continued its strong performance over January, delivering on its goal of competitive cash-beating returns with low variability. The team continues to manage the fund within the mandate constraints and aims to provide a high level of return, while ensuring high liquidity and low risk. Trading over the month was limited to liquidity management and reinvesting of maturities and coupons.
The Cadiz BCI Enhanced Income Fund benefited from its highly-diversified allocation to corporate floating rate securities, as well as its allocation to South African nominal bonds. The fund continues its track-record of low volatility returns aimed at growing wealth while limiting downside risk. Trades implemented during the month were due to effective cash management strategies as well as selective positioning in specific issuers and reinvestment of coupons.
The Cadiz BCI Absolute Yield Fund enjoyed a good start to the year, delivering strong returns mostly driven by a run in South African government bonds during January. The selective positions in corporate credit also added to positive performance. There was limited trading over January, mainly due to management of coupon payments and cash positions. The fund remains actively managed by the team to take opportunities as they present themselves and to manage prevailing risks.