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Cadiz Managed Flexible Fund Announced as the Best Domestic Asset Allocation Prudential Fund

26 January 2012

Press Release

The Cadiz Managed Flexible Fund is a prudentially managed (ie complies with Regulation 28 of the Pension Funds Act) balanced unit trust fund, which aims to provide investors with a balance between capital growth and income over the medium to long term. The fund offers medium risk, diversified exposure to equities, property and fixed interest instruments and places an emphasis on active stock selection, as well as sector and asset allocation. The fund returned 15.07% per annum (source: Morningstar) for the three years to end December 2011, being the consideration period for this award.  

Commenting on the outlook for the fund, portfolio manager and chief investment officer, Francois van Wyk said; 'We believe that growth expectations will bottom out and improve towards the second half of 2012 and, while Developed Market inflation is still high, policymakers are more concerned with economic growth. As a result policy rates are likely to remain supportive and therefore any normalisation in risk appetite will be good news for Emerging Markets (including South Africa), equities and commodities, and as a result we have positioned the fund more in undervalued cyclical and risk assets. We would caution though that volatility is likely to remain elevated'.

Paul Hutchinson, head of Cadiz Collective Investments said; 'We recognise that sustained investment excellence is a key determinant to the success of any unit trust Manager. We are therefore extremely gratified to have received this further public validation of the enormous effort being made by the investment team at Cadiz Asset Management to deliver on each of our six unit trust funds' investment mandates'.

In 2011 Cadiz Asset Management was recognised as the Best Specialist Fund House by Morningstar. In addition, the Cadiz Absolute Yield and Inflation Plus (also managed by Francois van Wyk) received 2011 Morningstar Fund Awards in the Cautious Allocation and Flexible Allocation categories respectively, and the Cadiz Managed Flexible Fund was announced as the South African Balanced Fund of the Year at the Africa Fund Manager Performance Awards.

For further information, please contact Sonia Jamoulle on 021-657-8552, Communications and Investor Relations Manager at Cadiz