The Cadiz BCI Money Market Fund continued its strong performance over February, delivering on its goal of competitive cash-beating returns with low variability. 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. Trading over the month was limited to liquidity management and reinvesting of maturities and coupons, as well as selective exposures to suitable instruments.
The Cadiz BCI Enhanced Income Fund benefited from its highly-diversified allocation to corporate floating rate securities, while the allocation to nominal bonds detracted slightly from performance. The fund continues its track record of consistently delivering low-volatility returns aimed at growing wealth, while limiting downside risk. Trades implemented during the month were due to effective cash management strategies as well as selective positioning in specific issuers and instruments.
The Cadiz BCI Absolute Yield Fund, with its higher exposure to South African Government bonds, experienced some strain during February as nominal bonds came under pressure. The selective positions in corporate credit mitigated much of the downside, however. There was limited trading during February, mainly due to the management of coupon payments and cash positions, as well as selective trading opportunities. The fund remains actively managed by the team to take opportunities as they present themselves and to manage prevailing risks.