CADIZ FR MONEY MARKET FUND
The Cadiz FR Money Market Fund continued to fulfil its mandate and delivered competitive returns during June. Short-term interest rates trended lower as market participants scaled back expectations of further repurchase rate hikes following the recovery in oil prices and the easing of inflation concerns. The Fund remains strategically positioned within the short-term investment universe, 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 June was driven primarily by its exposure to nominal bonds, inflation-linked bonds and corporate credit. Government bond yields declined as geopolitical tensions eased, supporting positive returns from the Fund’s nominal bond holdings. Strong investor demand for corporate debt also contributed positively to performance, while inflation-linked bonds benefited from a rise in inflation expectations. 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 June was underpinned by its allocations to nominal bonds, inflation-linked bonds and corporate credit. An increased exposure to bonds contributed positively to returns as yields declined during the month, resulting in higher bond valuations. Trading activity focused on deploying available cash, rebalancing the portfolio and reinvesting proceeds from maturing instruments. The Fund remains actively managed, with a focus on capturing opportunities across markets while maintaining a disciplined approach to risk management.
CADIZ FR BOND FUND
The Cadiz FR Bond Fund delivered another positive return in June supported by declining bond yields. Performance was driven primarily by the medium- and long-term segments of the yield curve, which made a strong contribution to overall returns. The FTSE/JSE All Bond Index (ALBI) returned 1.55% for the month and 21.48% 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.
