CADIZ FR MONEY MARKET FUND
The Cadiz FR Money Market Fund continued to fulfil its mandate and delivered competitive returns during July. Despite market expectations for a rate hike, the South African Reserve Bank (SARB) kept the repo rate unchanged at its July meeting. Short-term interest rates initially moved higher, but retraced following the SARB’s announcement. The portfolio remains strategically positioned within the short-term investment universe, with a targeted allocation to high-quality corporate credit to enhance yield while maintaining liquidity, preserving capital and adhering to mandate guidelines. This disciplined approach continues to support competitive risk-adjusted returns and has enabled the Fund to outperform its benchmark, the Alexander Forbes Short Term Fixed Interest (STeFI) Composite.
CADIZ FR ENHANCED INCOME FUND
The Cadiz FR Enhanced Income Fund’s performance in July was underpinned by its allocation to corporate credit and money market instruments. Government bond yields increased over the month as geopolitical uncertainty resurfaced alongside persistent inflationary pressures. Portfolio activity focused on managing cash flows, maintaining strategic positioning and reinvesting proceeds from maturing instruments. Looking ahead, the Fund remains well positioned to take advantage of opportunities across both the corporate credit and government bond markets, while continuing to prioritise attractive risk-adjusted returns.
CADIZ FR ABSOLUTE YIELD FUND
The Cadiz FR Absolute Yield Fund’s performance in July was supported by its allocations to corporate credit and money market instruments. Government bond yields moved higher during the month as renewed geopolitical uncertainty and persistent inflationary pressures weighed on markets. Trading activity centred on deploying available cash, rebalancing portfolio exposures and reinvesting proceeds from maturing instruments. The Fund continues to be actively managed with a disciplined approach to risk management while seeking to capture opportunities across both the corporate credit and government bond markets.
CADIZ FR BOND FUND
The Cadiz FR Bond Fund delivered performance in tandem with that of the local bond market as yields rose on renewed geopolitical uncertainty and persistent inflationary pressures. Weakness was most pronounced at the medium and long ends of the yield curve, which weighed on overall market returns. The FTSE/JSE All Bond Index (ALBI) returned -1.38% for the month and 16.62% 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.
