The Cadiz BCI Money Market Fund continued its strong performance over December, delivering on its goal of competitive cash-beating returns with low variability, as has been the case for the year of 2022. 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. The fund returned 0.62% over the month of December. Trading over the month was limited to liquidity management and reinvesting of maturities and coupons.
The Cadiz BCI Enhanced Income Fund benefited from a rebound in South African nominal bonds as well as its highly-diversified allocation to corporate floating rate securities. The shorter duration nature of these corporate securities limits the downside volatility of the fund. Trades implemented during the month were due to effective cash management strategies, as well as selective positioning in specific issuers. The fund returned 0.70% over December.
The Cadiz BCI Absolute Yield fund performed well over the final month of the year. The strong performance was spurred by a rebound in South African nominal bonds, as well as inflation-linked bonds. The selective positions in corporate credit also added to positive performance. There was very limited trading over December, mainly due to management of interest income and cash positions. The fund returned 0.71% over the period and remains actively managed by the team to take opportunities as they present themselves and to manage prevailing risks.