CADIZ BCI MONEY MARKET FUND
The Money Market Fund once again produced cash-beating returns with minimal volatility during the month of September. Trading activity was primarily prompted by deployment of cash and managing maturities. The fund continues to be managed within the prescribed mandate constraints with the objective of outperforming the benchmark, while ensuring substantial liquidity and low variation of return. The current high interest rate environment allows the fund to exploit lucrative opportunities to invest with minimal downside risk.
CADIZ BCI ENHANCED INCOME FUND
The heightened volatility in the bond market provided little support during the month of September. The Cadiz BCI Enhanced Income fund managed to produce positive returns, however, despite the negative returns from the bond and inflation-linked markets. The fund remains well diversified across a wide variety of floating rate notes which provided the positive support during the period. The fund remains consistent with its long-standing track-record of delivering low volatility returns and focusing on growing wealth, while limiting downside risks. Trading activities implemented during the month were driven by cash flows and reinvestment strategies, aligning with the fund’s objective of prudent portfolio management.
CADIZ BCI ABSOLUTE YIELD FUND
The Cadiz BCI Absolute Yield fund limited the volatility caused by its exposure to nominal and inflation-linked bonds by shortening duration and having a well-diversified exposure to corporate floating rate notes. September was a challenging month, as bond and real yields continued to rise in a fixed-income market that was increasingly risk averse. Trading activities during the month included the deployment of cash, re-investment of maturing instruments and active duration management to match the investment strategy and investment view. The fund remains actively managed by the team to take opportunities as they present themselves and to manage prevailing risks.