n Personal Finance Newsletter - The only fund of funds manager that was exposed to the fund that lost 66% : investment insights

Volume 2016, Issue 425
  • ISSN :



When the third circle met Target Return Fund lost 66% in two days last December, it wasn't only Third Circle clients that felt the losses. The fund was an underlying investment in two unit trusts run by Kanaan Asset Managers the Kanaan BCI Balanced Fund of Funds (FoF), and the Kanaan BCI Flexible Fund of Funds. Both of these funds gave the Third Circle unit trust less than a 10% weighting in their portfolios, but they were still badly impacted. The Kanaan BCI Balanced FOF lost 3.02% in one month, while the Kanaan BCI Flexible FoF shed 6.47%. Kanaan has, however, since sold these positions. The portfolio managers believe that they can make back the losses faster by switching into other funds.

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