Fair Oaks Capital has launched a sterling-hedged share class of its European AAA-rated CLO ETF, which is expected to list on the London Stock Exchange on February 10.
This adds an additional share class to the Fair Oaks AAA CLO ETF offering, which launched in September 2024, giving access to AAA-rated, floating-rate CLO notes in an ETF wrapper to European investors.
The newly-launched hedged share class is also the first of its kind, expanding the offering to sterling investors in an accessible format, with currency hedging and a lower denomination of £10 per share.
The portfolio management team, led by Miguel Ramos Fuentenebro and Roger Coyle, has been managing the fund, exclusively investing in European senior CLOs, since 2019.
“The addition of the industry’s first GBP-hedged option to access AAA-rated CLOs will enable additional investors to consider the asset class as an alternative for fixed-rate products such as investment grade corporate bonds”, said Miguel Ramos Fuentenebro.
“AAA-rated CLOs have a history of zero defaults and offer attractive yields, with a considerably higher spread than investment-grade corporates”.
The total expense ratio for the fund is 0.35 percent.
