Cadiz Absolute Yield Fund


The fund aims to provide investors with a return of 2% in excess of cash over a rolling 3 years and a positive return over any rolling 12-month period. The fund is expected to deliver more consistent returns than an income fund and reduce the volatility inherent in the bond market. Great care is applied to protect the fund against incurring losses.

Winner of the 2010 and 2011 Morningstar Fund Awards in the Cautious Balanced and Cautious Allocation categories, respectively.

Who the fund may be suitable for

Investors seeking a cash alternative to a bank deposit.

Investors who seek a managed exposure to income generating investments.

Those seeking active management within the fixed-interest universe.

Investors who have an 18-month or longer investment horizon.

Fund information

INVESTOR NEED
Income and growth

BENCHMARK
Alexander Forbes Short Term Fixed Interest Index (STeFi)+2%

INVESTMENT VEHICLE
Unit trust

WHAT DOES THE FUND INVEST IN:
The fund can invest in a combination of assets, such as government and corporate bonds, inflation linked bonds, listed property and cash both in South Africa and offshore. Derivative strategies such as swaps and futures may also be used for efficient portfolio management purposes and to mitigate downside risk. The fund does not invest in ordinary shares. The intended maximum limits, (see underlying instruments mentioned below), may not exceed 25% of the value of fund:
• Listed property: up to 10%
• International assets: up to 10%
• Preference shares: up to 10%
• Hybrid instruments: up to 5%
The fund has a flexible mandate with no duration or maturity limits for its investments.

RISK RATING
Low

TIME HORIZON
18-months or longer

ASSET CLASS(ES)
Property shares, preference shares, money market instruments, cash and bonds.

LAUNCH DATE
1 March 2006

ASISA CLASSIFICATION (WHERE RELEVANT)
ASISA SA Multi Asset Income

INCOME DISTRIBUTION / PAYMENT
Bi-annual (30 June, 30 December)

INVESTMENT MINIMUM
Lump sum: R5 000
Monthly: R500
Ad hoc: R500

REGULATION 28
Yes

CURRENCY AVAILABILITY
South African rand

PORTFOLIO MANAGERS
Alastair Sellick
Sidney McKinnon

STATUS
Open

LIQUIDITY
Daily

Cadiz Initial Fee
NIL

Cadiz Annual Management Fee
0.80% (excluding VAT)

Cadiz Performance Fee
NIL

Adviser Maximum Initial Fee
3.00% (excluding VAT)

Adviser Maximum Ongoing Fee
1.00% (excluding VAT)

Total Expense Ratio (TER)
See Fund Fact Sheet