Fair Oaks Capital, a specialist corporate credit manager, has listed the first European Collateralised loan obligation (CLO) ETF on the London Stock Exchange.
Trading commenced today in both Euro and Sterling currencies, offering access to AAA-rated, floating-rate CLO notes. Fair Oaks initially listed the CLO ETF on Deutsche Börse Xetra on Sept. 11.
The ETF will be managed by a team of six, supported by the broader Fair Oaks credit team and led by Miguel Ramos Fuentenebro and Roger Coyle, co-founders and partners of the firm.
The target market for the ETF is European institutional and informed investors and it will a have total expense ratio of 0.35 percent.
Fuentenebro said: “We’re pleased with the initial reception to the Fair Oaks AAA CLO ETF. For the first time, European ETF investors now have efficient access to AAA-rated CLOs, an asset class that has a record of no historical defaults and an attractive yield.”
“CLO ETFs have been tremendously successful in the U.S. as they offer investors a unique high quality, floating rate, short duration asset. The new London listing offers UK and European investors access to 100% AAA-rated CLOs in an ETF wrapper for the first time in Euros and British pounds,” said Stephane Diederich, CEO of the Alpha UCITS fund platform.”
