Fair Oaks Capital Lists First European-Domiciled AAA CLO ETF on Xetra

LONDON, Sept. 11, 2024 /PRNewswire/ -- Fair Oaks Capital has listed the first European AAA CLO ETF on Deutsche Börse Xetra and Börse Frankfurt (ticker: LAAA), offering access to AAA-rated, floating-rate CLO notes. Trading commenced today.

Fair Oaks AAA CLO ETF (FAAA) invests in AAA-rated CLOs. FAAA was launched on the Alpha UCITS fund platform as an additional listed share class of an existing Fair Oaks UCITS fund, the Fair Oaks AAA CLO Fund (the Fund). The Fair Oaks fund was launched in 2019 with Alpha UCITS and has over €150 million in assets under management as of Aug. 30, 2024. The ETF share class offers investors access to the existing, high-quality, diversified portfolio. The Fund invests exclusively in AAA-rated CLOs, based on Fair Oaks' established investment processes. FAAA is a long-only portfolio with no leverage and is classified as Article 8 under the EU Sustainable Finance Disclosure Regulation (SFDR).

The ETF is managed by a team of six professionals, supported by the broader Fair Oaks credit team and led by Miguel Ramos Fuentenebro and Roger Coyle, co-founders and partners of the firm.

Ramos Fuentenebro, said, "The Fair Oaks AAA CLO ETF gives investors efficient access to a broad range of AAA-rated floating-rate instruments. These assets have demonstrated a flawless performance record: from 1997 to 2023, no AAA-rated CLO note has defaulted, as confirmed by S&P Global. We are confident that the CLO market provides consistently strong, repeatable risk-adjusted returns across different market environments, outperforming many other credit strategies."

Stephane Diederich, CEO of the Alpha UCITS platform, emphasised the strategic importance of launching the Fair Oaks AAA CLO ETF share class with an initial fund size of over €150 million, making it highly attractive for institutional investors.

"The fund is well-positioned to meet the demands of institutional investors who often seek to deploy large capital allocations without exceeding ownership limits of a single ETF for risk management purposes. This allows investors to gain meaningful exposure while maintaining balanced risk across their portfolios," Diederich said.

The total expense ratio for the Fair Oaks AAA CLO ETF is 0.35 percent.

About Fair Oaks Capital

Fair Oaks Capital is a specialist corporate credit investment manager. Established in 2013 and operating from offices in London and New York, Fair Oaks specializes in CLOs and secured loans, managing over $3 billion in assets for a global client base, as of July 31, 2024. The Fair Oaks Dynamic Credit Fund, launched in 2016, was the investment industry's first global CLO UCITS fund. For more information, visit www.fairoakscap.com and www.CLO-ETF.com

About Alpha UCITS

Alpha UCITS is one of the oldest UCITS distribution and structuring platforms. Alpha UCITS was founded in October 2009 by Stephane Diederich, formerly a partner at Brevan Howard Asset Management LLP. The company is based in London and is ranked among the top 10 UCITS platforms by AUM. Alpha UCITS has won numerous industry awards as "Best UCITS Platform" and "Best Third Party Marketing Firm." For more information, visit www.alpha-ucits.com or write to [email protected].

Media Contacts for Fair Oaks Capital

Margaret Kirch Cohen/Richard Chimberg
Newton Park PR, LLC
+1 847-507-2229, + 617-312-4281
[email protected]
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Notes to investors

The information contained in this press release does not constitute an offer or solicitation for, or advice that you should enter into, the purchase or sale of any security or fund. Any views expressed are subject to change at any time.

This document is not intended for distribution to or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to law or regulation. This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe to any investment.

Any views expressed were held at the time of preparation and are subject to change without notice. While any forecast, projection or target where provided is indicative only and not guaranteed in any way. Fair Oaks Capital Limited accepts no liability for any failure to meet such forecast, projection or target. The value of investments and any income from them can go down as well as up and investors may not get back the amount originally invested. Where overseas investments are held the rate of currency exchange may also cause the value of such investments to fluctuate.

Fair Oaks AAA CLO Fund (formerly known as Fair Oaks High Grade Credit Fund) is a sub-fund (the "Fund") of Alpha UCITS SICAV and issues both ETF share classes and non-ETF share classes. Alpha UCITS SICAV is an undertaking for collective investment in transferable securities organised as an "umbrella fund" comprising multiple compartments, organised as a SICAV, incorporated under the form of a public limited liability company (société anonyme) and authorised under Part I of the Luxembourg law of 17 December 2010 on undertakings for collective investment. This information contained in this press release does not constitute an offer or solicitation to buy shares in the Fund.

The information contained herein is not for distribution to and does not constitute an offer to sell or solicitation of any offer to buy any securities in the United States of America to or for the benefit of any United States person(s). This material is not a solicitation, an offer, a recommendation or advice to buy or sell investment products, or to engage in other transactions. It explicitly does not take account the investment objectives, knowledge, experience or financial situation of any person. You should not act upon this information in any way and you are advised to obtain professional advice which does take account of your particular circumstances.

Detailed information for article 8 sustainable investment products, as categorised under the Sustainable Finance Disclosure Regulation (SFDR) can be found in the Fund's Prospectus.

You should carefully read the Fund's Prospectus and relevant Key Investor Information Document (the "KIID"), as well as consult with your advisers before making a decision to buy shares of the Fund. Investing in the Fund involves risk, including without limitation risk of total investment loss and other risks noted in the Fund's latest Prospectus and KIID.

SOURCE Fair Oaks Capital