Supporting Innovation in Active Fixed Income ETFs
Fair Oaks AAA CLO ETF (FAAA) launched in September 2024 as the first European domiciled and Euro denominated ETF in the structured credit asset class that has garnered the biggest global inflows in the fast growing actively managed fixed income ETF space. FAAA is an actively managed credit ETF selecting the most senior investment grade CLO tranches based on fundamental credit analysis, structural reviews and due diligence on CLO managers. The ETF shares are issued from an existing Fair Oaks UCITS fund which was launched in 2019 and has €105 million of assets as at 30 June 2025.
Ultumus, the world’s largest independent Portfolio Composition File (PCF) calculation Agent, has won the mandate to provide daily PCF files for FAAA, which will be published via API and vendor feeds.
FAAA launched with a Euro share class and now also has currency hedged share classes in USD and GBP. There are distributing share classes paying quarterly dividends and accumulating classes rolling up the income, which is referenced to floating interest rates. The current yield in May 2025 is 3.5%, which is more than most other AAA rated assets. The product makes ESG disclosures under article 8 of the SFDR. Its total expense ratio is 0.35%.
Listings thus far are on the London Stock Exchange, Borsa Italiana and Xetra (Dusseldorf/Frankfurt), though the product is also registered for distribution in over 10 European countries including Switzerland and for institutional investors in Singapore. APs making markets in FAA include HSBC, Susquehanna, RBC, Flow, Jane, Jeffries, Morgan Stanley, Soc Gen. All of these market makers are Ultumus clients ingesting ETF data directly into their front office trading systems.
FAAA will also feed into Ultumus ETF Data services, where Ultumus has been honoured as ETF Data Provider of the Year by ETF Stream Awards, which have also recognised Fair Oaks for “New ETF Issuer of the Year” and “Innovative ETF of the Year”.
About Fair Oaks Capital
Fair Oaks Capital launched in 2013 and manages over USD 3 billion in corporate credit, loans and structured credit. Since 2019 the firm has listed six of its own CLOs investing in European broadly syndicated loans and complying with ESG investment restrictions. It also runs managed accounts and UCITS funds, operating out of London and New York.
About Ultumus by Six
Ultumus is the leading provider of ETF and index data, calculation and workflow solutions. It is owned by SIX Group, the operator of the SIX Swiss Exchange and BME Exchange in Spain. Since launching in 2016, Ultumus’ has built technology-enabled solutions to capture, normalise, enrich and distribute data daily across the entire ETF and Index ecosystem.
Ultumus is headquartered in London and has offices in Singapore and Hawaii.
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