Fair Oaks launches CLO focused fund on Alpha UCITS platform

14 September 2016

Fair Oaks Capital has partnered with the Alpha UCITS platform to launch the first UCITS fund focused on the global collateralised loan obligation (CLO) market.

The Fair Oaks Dynamic Credit Fund is the first UCITS fund to offer global exposure to senior secured corporate loans through investments in rated CLO securities.

The fund expects to complete the launch of its initial share class on 28 September 2016 at circa EUR150 million.

The fund will be actively managed by Fair Oaks, with a strong emphasis on bottom-up fundamental credit analysis. It will primarily seek exposure to investment-grade rated CLO securities on a long-only basis and with no leverage used at the fund level.

The fund will target 5 per cent per annum net returns, offering weekly liquidity (with daily NAV pricing).

Alpha UCITS Ltd is a London based company founded in 2009 by Stephane Diederich, formerly a partner at Brevan Howard Asset Management.

Miguel Ramos Fuentenebro (pictured), partner of Fair Oaks, says:

“We are delighted to launch the first UCITS fund focusing on the global CLO market. We believe the Fair Oaks Dynamic Credit UCITS Fund will offer attractive portfolio benefits to any fixed income investors. The strategy offers a good spread pick-up and diversification to corporate bonds and other credit assets. It is well suited for this stage of the credit cycle.”

Diederich adds:

“Fair Oaks Capital organised a very thorough due diligence in order to launch its first UCITS fund and we are very pleased that Fair Oaks has chosen Alpha UCITS as its structuring and distribution partner. We are particularly excited to offer the Fair Oaks CLO strategy to investors as the strategy is an innovation in the UCITS world and as CLOs are well suited for the current interest rate and credit environment.”

Fair Oaks is one of the most active investors in CLOs having invested close to USD1 billion in the asset class over the past two years.