Fair Oaks Capital launches Europe’s first AAA CLO ETF
Fair Oaks Capital has taken a notable step by launching the first European AAA CLO ETF, now trading on Deutsche Börse Xetra and Börse Frankfurt under the ticker LAAA. The product gives investors targeted exposure to AAA-rated, floating-rate CLO notes and began trading recently—an important milestone for this corner of the credit market.
What the ETF offers—and how it fits within Fair Oaks’ platform
The Fair Oaks AAA CLO ETF—referred to as FAAA—is an exchange-traded share class of the existing Fair Oaks UCITS vehicle, the Fair Oaks AAA CLO Fund, which first launched in 2019. As of a recent date, the underlying fund manages more than €150 million, underscoring growing demand for this strategy. By listing the ETF share class, Fair Oaks opens the door for investors to access the same established, AAA-only portfolio in a more easily tradable format. In short: FAAA is the strategy; LAAA is the exchange ticker.
The team behind the portfolio
Day-to-day management sits with a team of six investment professionals, supported by the broader Fair Oaks credit platform. The group is led by co-founders and partners Miguel Ramos Fuentenebro and Roger Coyle, whose experience shapes portfolio construction and risk oversight and keeps the ETF aligned with its objectives.
Why this launch matters
Miguel Ramos Fuentenebro framed the launch as a way to give investors efficient access to a broad range of AAA-rated, floating-rate instruments within the CLO market. Historical data backs the quality focus: from 1997 through 2023, S&P Global records show no defaults among AAA-rated CLO notes. While past results aren’t a promise, that track record highlights the resilience of the top-rated layer of the asset class.
Designed with institutions in mind
Stephane Diederich, CEO of the Alpha UCITS platform, emphasized the strategic rationale for listing the Fair Oaks AAA CLO ETF. With an initial fund size above €150 million, the ETF is set up to accommodate larger allocations and fit within institutional ownership frameworks, offering a way to deploy capital while maintaining a balanced risk profile.
Costs and access
The ETF’s total expense ratio is 0.35 percent. For investors weighing costs alongside quality and liquidity, that fee level is a central part of the appeal and helps keep the focus on the underlying exposure rather than overhead.
About Fair Oaks Capital
Founded in 2013, Fair Oaks Capital is a specialist investment manager focused on corporate credit. The firm concentrates on CLOs and secured loans and, as of a recent date, oversees more than $3 billion across its strategies. Fair Oaks also launched the industry’s first global CLO UCITS fund in 2016. The team operates across key global financial hubs to support sourcing, research, and portfolio management.
About Alpha UCITS
Alpha UCITS is a leading platform for structuring and distributing UCITS. Established in 2009 by Stephane Diederich, it ranks among the top 10 UCITS platforms by assets under management (AUM) and has received multiple industry awards recognizing its distribution capabilities.
Frequently Asked Questions
What is the Fair Oaks AAA CLO ETF?
It’s an exchange-traded share class that gives you access to a portfolio of AAA-rated, floating-rate CLO notes—the first European ETF of its kind. It trades on Deutsche Börse Xetra and Börse Frankfurt under the ticker LAAA.
How does FAAA relate to the existing Fair Oaks fund?
FAAA is the ETF share class of the Fair Oaks AAA CLO Fund, a UCITS vehicle launched in 2019. The ETF taps into the same AAA-only strategy while offering exchange trading and intraday liquidity.
Who manages the ETF?
A six-person investment team runs the portfolio, led by Fair Oaks Capital co-founders and partners Miguel Ramos Fuentenebro and Roger Coyle.
Why might an investor consider this ETF?
It provides streamlined access to a diversified portfolio of AAA-rated CLOs, with a total expense ratio of 0.35 percent, aiming to pair high-quality exposure with cost efficiency.
What’s the historical default experience for AAA CLOs?
From 1997 to 2023, S&P Global reports no defaults among AAA-rated CLO notes. While not a guarantee of future results, that record speaks to the strength of the top-rated tranche.
