Cadiz Holdings Limited is a financial services group specialising in institutional and personal investments through its wholly-owned subsidiary, Cadiz Asset Management.
Founded in Cape Town 20 years ago, the group has been listed on the JSE since 1999. After being established as a securities house, the business has focused increasingly on asset management over the past decade. This included the acquisition of African Harvest Fund Managers in 2006 which positioned the group as a meaningful competitor in the institutional and personal asset management markets.
Cadiz’ business model is based on a small head office function. The business units, namely Cadiz Asset Management and Cadiz Corporate Solutions, are accountable for their performance which is closely aligned with remuneration and with the interests of shareholders.
Today Cadiz Asset Management is one of the larger independent fund managers in the country. Assets under management totalled R28.5 billion at year-end, spread across institutional (68%) and personal (32%) investment clients. The group also offers independent corporate advisory services through Cadiz Corporate Solutions and has a 40% interest in the stockbroking business, BNP Paribas Securities.
Transformation and black economic empowerment (BEE) are fundamental to the group’s philosophy and business strategy. Makana Investment Corporation (Makana) has been the group’s strategic empowerment partner since 2004 and has a 15% shareholding in Cadiz. Makana is owned and controlled by the Makana Trust, an organisation initiated by the late Nelson Mandela to assist former political prisoners and their dependants. The commitment to transformation is reflected in the group being consistently rated as a level three broad-based BEE contributor.
The group’s capital management strategy is to maintain a prudent liquid capital base to meet regulatory capital adequacy and working capital requirements. Cadiz does not plan to accumulate capital and will distribute annual profits, adjusted for the non-cash impact of the associates, to shareholders.
For more information on Cadiz Holdings Limited, please visit http://www.cadiz.co.za/