CADIZ ASSET MANAGEMENT

Cadiz is a specialist local fixed-income manager providing investment solutions to both the retail and institutional market, whose philosophy is to provide incremental outperformance over time within defined risk parameters. 

The Cadiz Money Market Fund continues to deliver on its mandate by consistently providing returns that outperform cash. The fund retains a strategic position to exploit current interest rate levels, while traversing the dynamics of the changing interest rate cycle. With rates commencing their decline, the fund has managed to lock in favourable yields without compromising liquidity. The fund is managed within its prescribed mandate constraints and is consistently outperforming its benchmark, the Alexander Forbes Short Term Fixed Interest (STeFI) composite index. In addition, it diligently ensures the maintenance of adequate liquidity levels, while keeping volatility of returns low. 

The Cadiz Enhanced Income Fund. An uptick in corporate issuance during September provided the fund with further opportunities to invest in yield enhancing instruments. The exposure to nominal bonds once again stood the fund in good stead as this asset class delivered positive returns for the period. The fund maintained its long-standing track record of delivering low volatility returns, while focusing on growing wealth and limiting downside risks. Trading activities during the month were driven by cash flows and reinvestments, aligning with the fund's objectives, while maintaining prudent portfolio management. 

The Cadiz Absolute Yield Fund maintained its exposure to nominal and inflation-linked bonds, while increasing duration in line with our strategic investment view. This approach served the fund well during September as these asset classes delivered positive returns for the term. The fund also retains a diversified exposure to floating rate notes, which once again contributed favourably to performance. Trading activities during the month included deploying cash, reinvesting maturing instruments, and managing duration to align with the investment strategy and the market outlook. The fund remains actively managed by the team to capitalise on opportunities and manage prevailing risks.

The Cadiz Bond Fund maintained its position in local nominal bonds which delivered a return close to 4.0% for the month of September. This strong showing can be attributed to a drop in yields, spurred on by the start of the rate cutting cycle implemented by central banks. The nominal government bond exposure in the fund served the fund well during the month as it delivered returns in excess of its benchmark over the period.  The fund maintained a marginally longer duration position which supported the returns achieved. The fund remains primarily invested in government bonds strategically positioning its duration and exposure levels to be in line with the current investment view.