The DESK
05-Jun-25
The trillion behind the ticker
03-Jul-25
The DESK
05-Jun-25
The trillion behind the ticker
03-Jul-25
 

Insights

12 minute read

Finding liquidity at the core

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Barry Povey

Principal

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Rethinking traditional liquidity analysis for CLO ETFs

Investors are familiar with understanding the liquidity of a specific asset by looking at secondary market activity. Measures such as ‘average daily trading volume’ or ‘available free float’ are typical examples of traditional analytical approaches.  

While this is appropriate for assets with no active primary market (e.g., shares in a company), traditional analysis is incomplete for ETFs where an active primary market does exist. In the case of European CLO ETFs, liquidity is driven by the liquidity of the underlying asset itself – AAA CLOs. 

We show that because AAA CLOs are liquid and CLO ETFs provide a way of accessing this liquidity at minimal cost, AAA CLO ETFs are currently far more liquid than traditional measures might suggest.

Introduction

A question we are frequently asked is how an investor should approach understanding the liquidity and bid-offer spreads of CLO ETFs. Given the product is relatively new and its ease of trading is often highlighted as a key benefit, this question is to be expected. A natural place to start is by analysing the activity in secondary markets by using measures such as ‘average daily trading volumes’ or available ‘free float’. However, this neglects a vital feature of ETFs. ETFs have an active primary market which can be accessed daily by investors. The simplicity of this access sets the foundation for the liquidity in any ETF product.

The structural tests maintained by CLOs

The majority of investors understand how to evaluate the liquidity of a company’s shares, along with the roles played by the two markets that facilitate it (the primary and secondary markets). The secondary market, in particular, is often the focus of analysis as it is the most easily accessible, daily method for transacting in a company’s shares.

An investor can approach a broker or market maker to buy or sell shares. A broker would then seek the opposite side of the investor’s trade (i.e., if the investor wanted to sell, the broker would source a buyer) and charge a small fee for intermediating. This is commonly executed through the secondary market by transacting with the exchange (an organised meeting place of buyers and sellers). A market maker acts in a similar capacity; however, they will also buy or sell shares for their own account or inventory. If the investor wanted to sell the shares, the market-maker can buy them to hold temporarily and, over time, look to sell the shares on to another investor. Market makers are exposed to any profit or loss while owning the shares and typically charge a bid-offer spread for this action.

The primary market also exists for the purchase and sale of company shares. Examples of such primary activities are initial public offerings (“IPOs”), where shares are initially sold to the market, or a rights issue, where exiting shareholders are given the chance to buy additional shares. However, given these often only take place at the direction of the company and do not occur daily, investors do not typically factor them into liquidity analysis. As a result, investors focus on the secondary activity in a company’s shares, such as the bid-offer spread, or fees charged for transacting with a broker or market maker.  ‘Market capitalisation’ (the total value or shares outstanding in a company) or ‘free float’ (the value of those shares freely available to trade) may also be compared to a potential investment size to gauge the likelihood of successfully transacting in the shares.

For example, if an investor wanted to invest $10mm in a company with a $100bn free float, it is highly likely the brokers would be able to source the other side of the trade and facilitate it with minimal cost. If, however, the company only had a free float of $50mm, it may be trickier to find a buyer. Another way to consider this would be to compare the potential investment size to the average daily traded volume on the exchange. If the potential investment is a small percentage, there would be minimal concern with regard to liquidity.

1. Traditional liquidity analysis: secondary only

ETF liquidity analysis

In many ways, the underlying concepts of ETF liquidity are similar. However, applying traditional secondary-focused liquidity analysis misses a key feature of ETFs. Unlike corporate shares, ETFs have an easily accessible, daily primary market. Institutional investors may approach an Authorised Participant (“AP”) and request the creation (purchase) or redemption (sale) of ETF shares in the primary market. In the case of a creation, the investor provides cash to the AP and receive ETF shares in return. The cash is received by the ETF and the investment manager then uses it to purchase new assets. In the case of a redemption, the investor returns the shares to the AP and receives cash in return. This cash is funded by selling a portion of the fund’s assets. In both cases, there is no need for the AP to source the other side of the trade as the liquidity is generated through directly transacting with the fund, i.e., the ability of the fund to buy or sell the underlying assets. Therefore, the core driver of liquidity is not the ETF market but rather the liquidity available in the underlying asset market (in this case, AAA CLOs).

2. ETF liquidity analysis: primary and secondary

There are two components to the price and costs of a transaction:

    1. ETF price and charge: shares are typically created and redeemed at NAV (“net asset value” i.e., the market value of the underlying assets). Typically ETFs charge an additional creation or redemption fee on top, however the Fair Oaks AAA CLO ETF is ‘NAV flat’, meaning only the market value of the underlying CLOs is charged. This market value is independently calculated by third party valuation services.
    2. AP charge: the transaction type determines the charged amount
        • If a CLO ETF investor wants to trade immediately, the AP will quote a price with a bid-offer (most likely less than 20bps for CLO ETFs and usually significantly tighter) and the trade is completed immediately. This price could vary slightly to the NAV and would reflect the market maker’s view at the time of the trade.
        • If an order is left with the AP to create or redeem at the end of the day, a small spread on top of the official NAV will be charged (e.g. an all-in price of NAV +/- approximately 3bps for CLO ETFs).

It is worth considering how significantly this alters traditional liquidity analysis. As the primary market has daily activity and low cost, analysing the liquidity of ETFs by only evaluating secondary measures such as the average daily volume trade or free float of the ETF misses a key point: it is also a function of the underlying asset’s liquidity.

A framework by which to consider ETF liquidity could follow:

    1. How liquid is the underlying asset, and what are the costs of transacting in it? This sets the core liquidity, as this is what the primary market of the ETF is accessing. Then, the costs of ETF share creation or redemption, and the AP bid-offer or costs are added (approximately 2-12bps for CLO ETFs under normal market conditions).
    2. An active secondary market in ETF shares can further tighten pricing, although it is not essential for ensuring liquidity when creating or redeeming shares.

ETF liquidity analysis

In Fair Oaks’ view, AAA CLOs are very liquid. They are actively traded in size on a daily basis in the secondary markets. Average monthly auction volumes were €485mm in 2024 (with four months above €600mm).1 We have previously discussed, in our “The CLO Investor Series” (Issue 3, April 2025), the number of investors who discovered AAA CLOs to be a vital asset class during periods of volatility due to the ability to sell in size with limited discount. Such spikes in AAA CLO trading volume were observed in COVID (€1.1bn in March 2020), LDI (€1bn in Oct 2022) and the recent tariff related volatility (€890mm in April 2025).1 The liquidity is underpinned by a large and broad investor base, from the world’s largest banks and insurance companies to specialist asset managers.

Additionally, the cost of trading AAA CLOs is minimal – often 0.02% on cash price. On the CLO primary side, €49bn volume printed in 2024, of which AAA’s were roughly 60% - an average monthly run rate of €2.5bn.1 AAA CLO ETFs merely provide a conduit for accessing this pool of liquidity.

Putting it all together: AAA CLO ETF Liquidity

As established, ETFs can benefit from secondary activity but are also able to access the liquidity of the primary market. Therefore, ETF liquidity is not necessarily a function of the average traded volume or its AUM, but rather the liquidity of the underlying assets. In the case of AAA CLOs, the market is large, active and can be transacted in at minimal cost. In assessing the liquidity of a proposed AAA CLO ETF investment, one should first consider it in relation to the size of the underlying AAA CLO market.

In context, suppose an investor wanted to invest €50mm into the Fair Oaks AAA CLO ETF. The total global amount of AAA CLOs currently outstanding in the market is €693bn.1,2

In ‘flow’ terms, the average monthly primary volume for European AAAs in 2024 was approximately €2.5bn (not including refinancing’s and resets, which would add another €1.5bn, approximately),1 and the average secondary auction volume was €485mm, not counting any bilateral trading. Dealers also hold a meaningful inventory, and it is normal for each active dealer to have over €20mm offered on their runs (often with larger sizes not listed).

As an example, on the day of writing this, Fair Oaks counts at least 11 dealers with more than €20mm of AAA inventory on offer each.2 Therefore, if an institutional investor wanted to invest €50mm into the ETF, they would approach an AP who could execute the trade at end of day NAV (with no added fees charged by Fair Oaks) and a small markup from the AP. Fair Oaks would then access the liquidity of the CLO market to deploy the capital in new CLO assets. As always, Fair Oaks would be actively selecting investments based on our usual in-depth investment process and fund constraints.

Conclusion

We believe that by understanding the roll of the primary ETF market, investors can better grasp the true liquidity of CLO ETFs and how those ETFs are able to provide efficient access to the underlying AAA CLO market at minimal cost.

Endnotes

  1. Bank of America “European CLO Databank - May-25” and Fair Oaks Capital data as at 04-Jun-25.
  2. Bank of America “CLO Weekly - May-25” and Fair Oaks Capital data as at 04-Jun-25.

Capital is at risk. The value of your investment may go down as well as up and you may not get back the amount you invested. Investors should read the key risks section and important information section of this page, KIID and Prospectus prior to investing.

GLOSSARY

Collateralised Loan Obligation (CLO): Securities backed by corporate debt assets. Both CLO securities and underlying assets are typically floating-rate, meaning a regular but variable interest payment is received as it is tied to a benchmark rate (typically EURIBOR in Europe and SOFR in the US). CLO securities are issued in multiple classes ranging from rated debt notes (typically AAA to BB/single-B) to first-loss equity notes. The principal and interest received from CLO’s assets is allocated sequentially between the classes. The payment of interest and principal to holders of CLO equity notes will only be made from the cash flows received on the CLO’s assets after senior ranking classes and expenses of the CLO have been sequentially paid, starting from the most senior class outstanding. CLO debt is sequentially protected by loss-absorbing junior-ranking notes, while the equity note bears the first risk default on the CLO’s assets.

Sustainable Finance Disclosure Regulation (SFDR) classification: Article 8 indicates that the product promotes environmental or social characteristics.

Total Expense Ratio (TER): A measure of the total costs per annum associated with managing and operating the product. This primarily consists of management fees and operating expenses such as trustee, custody or registrations costs. Expressed as a percentage of assets under management.

Current yield: Weighted average current coupon of assets held by the portfolio divided by the weighted current market price of the portfolio. Expressed as a percentage. The coupon of a CLO is typically paid quarterly and is tied to a reference rate (typically EURIBOR in Europe and SOFR in the US). Expressed as a percentage.

Spread to maturity: The discount margin over the benchmark rate (typically EURIBOR in Europe and SOFR in the US) that equates the present value of the portfolio’s cash flows with its market value, if all investments are held to their expected maturities. Expressed as an annual percentage.

Spread duration to maturity: Sensitivity of a bond’s price to a change in credit spreads, modelled based on expected average life for the invested portfolio. Expressed in years.

Total return: The change in value of an investment over a certain timeframe. It includes any net income (such as dividends) and change in capital value. Typically measured net of any fees. Expressed as a percentage change.

Interest rate duration: A measure of the responsiveness of an investment’s price to changes in interest rates. Expressed in years.

Undertakings for collective investment in transferable securities (UCITS): A European regulatory framework for open-ended funds investing in listed securities, authorised and monitored by a regulatory body (such as the Commission de Surveillance du Secteur Financier in Luxembourg or the Central Bank of Ireland in the Republic of Ireland).

Key investor information document (KIID): A short, two-page, document containing essential information about a fund, providing investors an understanding of the key risks and helps them to make an informed investment decision.

 

KEY RISKS

The following risks may affect the Sub-Fund. Full details of all risks the Sub-Fund is exposed to are provided in the Prospectus and KIID.

CLO valuation: The value of a CLO may be affected by a number of factors, including: credit spreads, changes in the performance or the market’s perception of the underlying assets backing the security and changes in the market’s perception of the adequacy of credit support built into the security’s structure to protect against losses. 

CLO liquidity: The secondary market for CLOs may not be as liquid as the secondary market for corporate debt. As a result, the Investment Manager could find it more difficult to sell these investments or may be able to sell them only at prices lower than if they were more widely traded. It may be difficult to establish accurate prices for such investments for the purposes of calculating the Sub-fund’s Net Asset Value. Therefore, prices realised upon the sale of such investments may be lower than the prices used in calculating the Sub-fund’s Net Asset Value.

Dependence on Managers of CLOs: The performance of the Sub-fund’s investments in CLOs will depend in part upon the performance and operational effectiveness of the managers of the CLOs.

Secondary Market Trading Risk: There is no guarantee that trading of ETF Shares on stock exchanges shall be possible including in, but not limited to, the following circumstances (i) such listing has not been achieved and/or maintained, (ii) the rules and requirements of any stock exchanges applicable to the listing of ETF Shares have changed or (iii) trading on such stock exchanges is suspended due to market conditions. Notwithstanding the listing of the ETF Shares on one or more stock exchange, there is no guarantee as to the liquidity of the ETF Shares on any stock exchange or as to the correlation of the trading price of ETF Shares on any stock exchange and the Net Asset Value for such ETF Share. On any given stock exchange, ETF Shares may trade at, above or below their Net Asset Value and such trading price may fluctuate in accordance with changes in the daily Net Asset Value, intraday changes in the Net Asset Value and market supply and demand for ETF Shares.

 

IMPORTANT INFORMATION

FOR INSTITUTIONAL AND INFORMED INVESTORS ONLY.  NO OTHER PERSONS SHOULD RELY ON THE INFORMATION CONTAINED WITHIN THIS PAGE.

This document relates to the Fair Oaks AAA CLO Fund (the “Sub-Fund”), a sub-fund of Alpha UCITS SICAV. In making any investment in the Sub-Fund, investors should rely solely on the prospectus (“Prospectus”), the relevant supplement (“Special Section”) and the Key Investor Information Document (“KIID”) (together the “Offering Documents”) and not any information set out in this document. The distribution of this document in jurisdictions other than the United Kingdom may be restricted by law and therefore persons into whose possession this document may come should inform themselves about and observe any such restrictions. In particular this document is not for distribution in or into the United States or Canada.

Copies of the Prospectus, the Special Section and information about investor rights (which are each only available in English) may be obtained at: https://fairoakscap.com/. Copies of the KIIDs (which are available both in English and the languages of each EU country in which the Sub-Fund has been passported) may be obtained from Waystone Management Company S.A (the “Management Company”) at: https://www.waystone.com/our-funds/waystone-managed-funds/

Marketing communications issued in the European Economic Area (“EEA”):This page has been issued and approved by Gestion Fondo Endowment, Agencia De Valores, S.A. which is authorised and regulated by the Spanish Comisión Nacional del Mercado de Valores (CNMV) as an authorised investment firm in accordance with the Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments, as amended (MiFID).

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Past performance is no indication of future results. Inherent in any investment is the potential for loss. Returns may increase or decrease as a result of currency fluctuations. Target returns and distributions are hypothetical targets only and are neither guarantees nor predictions or projections of future performance. There can be no assurance that such targeted returns will be achieved or that the product will be able to achieve its investment objective, policy or strategy or avoid substantial losses. Any decision to invest should be based on the information contained in the appropriate prospectus and after seeking independent investment, tax and legal advice. The content of this page does not constitute investment advice nor an offer for sale nor a solicitation of an offer to buy any product or make any investment.

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The distribution of this page in jurisdictions other than the United Kingdom may be restricted by law and therefore persons into whose possession this page may come should inform themselves about and observe any such restrictions. In particular, information contained within this page is not for distribution in or into the United States or Canada. Any failure to comply with these restrictions may constitute a violation of the securities law of such jurisdictions.

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An introduction to CLOs

Fair Oaks’ core belief is that the CLO market generates consistent, repeatable, and superior risk-adjusted returns over multiple market cycles versus other credit strategies:

  1. Diversified access to senior secured loans
  2. Attractive yield versus similarly rated credit assets
  3. Historically low default rate through multiple market cycles
  4. Minimal interest rate risk

CLOs are actively managed diversified senior secured loan portfolios, consisting of 100-300 large corporate issuers. While loans typically have extended settlement periods, CLOs settle on a T+2 basis given they are tradable securities, providing liquidity to investors. Each CLO is efficiently financed by long-term debt notes and a first-loss equity note. This combination of diverse underlying senior secured loans, with the structural integrity and flexibility of the CLO structure, enables CLOs to stand apart in the credit markets.

 

Debt notes sequentially receive quarterly interest payments above the reference rate (SOFR/EURIBOR) through a cashflow waterfall.  Payments are first made to senior debt notes (rated AAA) until junior debt notes (rated BB or single-B), with net excess cashflows paid to the equity tranche.

 

Subordination provides protection to debt notes as credit losses flow up through the capital structure. This has resulted in low historical default rates, enabling CLO notes to outperform default rates of similarly rated and even higher rated corporates.

CLOs attract a broad and stable investor base as a result of the credit rating assigned to debt notes, from banks, pension funds and insurance companies to specialized asset managers and hedge funds. As a result, the CLO market now stands at over $1 trillion in size, making it an established and liquid asset class. Given the c.25+ year track record, liquidity profile and opportunity for exposure to loans, CLOs are a key asset class for investors to consider in order to diversify a portfolio.

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Important notice

This website is operated by Fair Oaks Capital Limited, a limited company registered in England and Wales, with registered number 08260598, having its registered office at 1 Old Queen Street, London, SW1H 9JA. By using this website, you agree to these Terms and Conditions of Use, as well as to Fair Oaks Capital Limited’s Privacy Notice and Cookies Policy (together the “Terms”), which constitute a legal agreement between you and Fair Oaks Capital Limited governing your access to and use of this website. It is your responsibility to review the Terms and to make sure you understand and comply with them. Your compliance with the Terms is an ongoing condition to your use of this website, and you may not use it if you are not prepared to comply with all of the Terms.

Fair Oaks Capital Limited is authorised and regulated by the UK Financial Conduct Authority (“FCA”). References to “we” or “us” shall mean Fair Oaks Capital Limited and, where relevant, its affiliates, including Fair Oaks Capital US LP. Fair Oaks Capital US LP is a Delaware limited partnership with its place of business at 152 West 57 Street, New York, NY 10019.

Content of this website

This website is provided for your general information only and does not constitute investment advice or an offer to sell or the solicitation of an offer to buy any investment.

Nothing on this website is advice on the merits of any product or investment, nothing constitutes investment, legal, tax or any other advice nor is it to be relied on in making an investment decision. Prospective investors should obtain independent investment advice and inform themselves as to applicable legal requirements, exchange control regulations and taxes in their jurisdiction.

This website complies with the regulatory requirements of the United Kingdom. There may be laws in your country of nationality or residence or in the country from which you access this website which restrict the extent to which the website may be made available to you. If you are not permitted to access this website in accordance with the laws of your country or nationality of residence then please leave this website now.

Certain information contained on this website may be of a historical nature and may now be out of date. All historical information should be understood as speaking from the date of its first publication.

Likewise, this website may contain forward-looking statements. These forward-looking statements are subject to uncertainties and inherent risks that could cause actual results to differ materially from those contained in any forward-looking statement. We undertake no duty to update publicly any forward-looking statements contained herein, in light of new information or future developments.

Although the information provided to you on this website is obtained or compiled from sources we believe to be reliable, we cannot and do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available to you for any particular purpose. All information published is in good faith but no representation or warranty, express or implied, is made by us or any person as to its accuracy or completeness and it should not be relied on as such. We shall have no liability for any loss or damage arising out of the use of or reliance on the information provided including, without limitation, any loss or other damage, direct or consequential.

We have published a number of articles in the Insights section of this website. Opinions in such articles are our current opinions, and are subject to change without notice. We assume no responsibility to update information contained in such articles or to notify you of any changes. Any outlooks, forecasts or portfolio weightings presented in such articles are as of the date appearing therein and are also subject to change without notice. We disclaim any responsibility to update such views. Such commentary is intended for ‘institutional investors’ only (as such term is defined in various jurisdictions). Such commentary does not constitute an offer to sell any securities or the solicitation of an offer to purchase any securities. Such commentary discusses topical aspects of credit markets and should not be construed as research, investment advice, or any investment recommendation. Investment concepts mentioned in such commentary may be unsuitable for investors depending on their specific investment objectives and financial position. Fees, commissions, tax considerations and other transaction costs may significantly affect the economic consequences of any investment concepts referenced in such commentary and should be reviewed carefully with one’s investment and tax advisers. All information in such commentary is believed to be reliable as of the date on which this commentary was issued, and has been obtained from sources believed to be reliable. No representation or warranty, either express or implied, is provided in relation to the accuracy or completeness of fairness of the information or opinions contained therein.

Distribution of information

The distribution of the information and material on this website may be restricted by law in certain countries. None of the information is directed at, or is intended for distribution to, or use by, any person or entity in any jurisdiction (by virtue of nationality, place of residence, domicile or registered office) where publication, distribution or use of such information would be contrary to local law or regulation, or would subject us to any registration or licensing requirements in such jurisdiction. You must inform yourself about, and observe any such restrictions in your jurisdiction and by accessing this website you represent that you have done so. The information on this website is not for distribution and does not constitute an offer to sell or the solicitation of any offer to buy any securities in the United States to or for the benefit of any United States person (being residents of the United States or partnerships or corporations organised under the laws thereof). None of the funds or other investment products contained on this website have been registered in the United States under the Investment Company Act of 1940 and interests therein are not registered in the United States under the Securities Act of 1933.

We may monitor and/or record any telephone communications and electronic communications with you.

Risk Warnings

Investments can involve significant risk. Past performance is not a guarantee of future performance. The price of investments can go down as well as up and may be affected by changes in rates of exchange. An investor may not get back the amount invested. Target returns and distributions are hypothetical targets only and are neither guarantees nor predictions or projections of future performance. There can be no assurance that such targeted returns will be achieved. The price of investments listed on an exchange is determined by supply and demand, and may not equate to the value of the investment’s underlying assets. Any decision to investment should be based on the information contained in the appropriate prospectus, offering memorandum or equivalent contractual document and after seeking independent investment, tax and legal advice.

Linked Websites

This website may provide addresses or hyperlinks which lead you to other websites (“Linked Sites”). We have not reviewed nor do we endorse or recommend any products or services offered or information contained on Linked Sites, and disclaim any liability for their content or any consequences of their use. Any web addresses and hyperlinks in this website are provided solely for convenience and information. Accessing any Linked Sites shall be at your own risk.

IP rights

This website and its content are owned by Fair Oaks Capital Limited, and may contain information, text, graphics, video, software, logos, and other materials (“Content”) that are protected by copyright, trademarks, or other proprietary rights. No permission is granted to upload, copy, modify, post, frame, amend or distribute any of the Content of this website in any way without obtaining the prior written permission of Fair Oaks Capital Limited. All intellectual property rights in any part of the world which subsist in the Contents of this website and which belong to Fair Oaks Capital Limited, save as expressly granted, are hereby reserved. This website contains various registered and unregistered trade marks belonging to Fair Oaks Capital Limited. The registered trademarks include, but are not limited to, “Fair Oaks”, “Fair Oaks Capital” and the Fair Oaks Capital logo.

Jurisdiction

Use of this website shall be governed by and construed in accordance with the laws of England and Wales and any dispute arising in relation to this website is subject to the jurisdiction of the English courts.

Variation of Terms of Use

We reserve the right to vary these terms of use at any time and will post any variations here. You are advised to review these terms of use on a regular basis as you will be deemed to have accepted variations if you continue to use the website after they have been posted.

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HOW TO INVEST IN FAIR OAKS AAA CLO ETF

Via primary market

through authorised participants

Via OTC

through bank or authorised participant

Via exchange

through broker

CONTACT FAIR OAKS
✕

Welcome

Please confirm your country of residence and investor type:

Investor type

By selecting Professional Client, you affirm either that you are a Per Se Professional Client, or that you wish to be treated as an Elective Professional Client, both as defined under the markets in Financial Instruments Directive (in the case of persons access this website from the UK, as transposed into UK law), or an equivalent in a jurisdiction outside the European Economic Area.

Terms and Conditions

Important notice

This website is operated by Fair Oaks Capital Limited, a limited company registered in England and Wales, with registered number 08260598, having its registered office at 1 Old Queen Street, London, SW1H 9JA. By using this website, you agree to these Terms and Conditions of Use, as well as to Fair Oaks Capital Limited’s Privacy Notice and Cookies Policy (together the “Terms”), which constitute a legal agreement between you and Fair Oaks Capital Limited governing your access to and use of this website. It is your responsibility to review the Terms and to make sure you understand and comply with them. Your compliance with the Terms is an ongoing condition to your use of this website, and you may not use it if you are not prepared to comply with all of the Terms.

Fair Oaks Capital Limited is authorised and regulated by the UK Financial Conduct Authority (“FCA”). References to “we” or “us” shall mean Fair Oaks Capital Limited and, where relevant, its affiliates, including Fair Oaks Capital US LP. Fair Oaks Capital US LP is a Delaware limited partnership with its place of business at 152 West 57 Street, New York, NY 10019.

Content of this website

This website is provided for your general information only and does not constitute investment advice or an offer to sell or the solicitation of an offer to buy any investment.

Nothing on this website is advice on the merits of any product or investment, nothing constitutes investment, legal, tax or any other advice nor is it to be relied on in making an investment decision. Prospective investors should obtain independent investment advice and inform themselves as to applicable legal requirements, exchange control regulations and taxes in their jurisdiction.

This website complies with the regulatory requirements of the United Kingdom. There may be laws in your country of nationality or residence or in the country from which you access this website which restrict the extent to which the website may be made available to you. If you are not permitted to access this website in accordance with the laws of your country or nationality of residence then please leave this website now.

Certain information contained on this website may be of a historical nature and may now be out of date. All historical information should be understood as speaking from the date of its first publication.

Likewise, this website may contain forward-looking statements. These forward-looking statements are subject to uncertainties and inherent risks that could cause actual results to differ materially from those contained in any forward-looking statement. We undertake no duty to update publicly any forward-looking statements contained herein, in light of new information or future developments.

Although the information provided to you on this website is obtained or compiled from sources we believe to be reliable, we cannot and do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available to you for any particular purpose. All information published is in good faith but no representation or warranty, express or implied, is made by us or any person as to its accuracy or completeness and it should not be relied on as such. We shall have no liability for any loss or damage arising out of the use of or reliance on the information provided including, without limitation, any loss or other damage, direct or consequential.

We have published a number of articles in the Insights section of this website. Opinions in such articles are our current opinions, and are subject to change without notice. We assume no responsibility to update information contained in such articles or to notify you of any changes. Any outlooks, forecasts or portfolio weightings presented in such articles are as of the date appearing therein and are also subject to change without notice. We disclaim any responsibility to update such views. Such commentary is intended for ‘institutional investors’ only (as such term is defined in various jurisdictions). Such commentary does not constitute an offer to sell any securities or the solicitation of an offer to purchase any securities. Such commentary discusses topical aspects of credit markets and should not be construed as research, investment advice, or any investment recommendation. Investment concepts mentioned in such commentary may be unsuitable for investors depending on their specific investment objectives and financial position. Fees, commissions, tax considerations and other transaction costs may significantly affect the economic consequences of any investment concepts referenced in such commentary and should be reviewed carefully with one’s investment and tax advisers. All information in such commentary is believed to be reliable as of the date on which this commentary was issued, and has been obtained from sources believed to be reliable. No representation or warranty, either express or implied, is provided in relation to the accuracy or completeness of fairness of the information or opinions contained therein.

Distribution of information

The distribution of the information and material on this website may be restricted by law in certain countries. None of the information is directed at, or is intended for distribution to, or use by, any person or entity in any jurisdiction (by virtue of nationality, place of residence, domicile or registered office) where publication, distribution or use of such information would be contrary to local law or regulation, or would subject us to any registration or licensing requirements in such jurisdiction. You must inform yourself about, and observe any such restrictions in your jurisdiction and by accessing this website you represent that you have done so. The information on this website is not for distribution and does not constitute an offer to sell or the solicitation of any offer to buy any securities in the United States to or for the benefit of any United States person (being residents of the United States or partnerships or corporations organised under the laws thereof). None of the funds or other investment products contained on this website have been registered in the United States under the Investment Company Act of 1940 and interests therein are not registered in the United States under the Securities Act of 1933.

We may monitor and/or record any telephone communications and electronic communications with you.

Risk Warnings

Investments can involve significant risk. Past performance is not a guarantee of future performance. The price of investments can go down as well as up and may be affected by changes in rates of exchange. An investor may not get back the amount invested. Target returns and distributions are hypothetical targets only and are neither guarantees nor predictions or projections of future performance. There can be no assurance that such targeted returns will be achieved. The price of investments listed on an exchange is determined by supply and demand, and may not equate to the value of the investment’s underlying assets. Any decision to investment should be based on the information contained in the appropriate prospectus, offering memorandum or equivalent contractual document and after seeking independent investment, tax and legal advice.

Linked Websites

This website may provide addresses or hyperlinks which lead you to other websites (“Linked Sites”). We have not reviewed nor do we endorse or recommend any products or services offered or information contained on Linked Sites, and disclaim any liability for their content or any consequences of their use. Any web addresses and hyperlinks in this website are provided solely for convenience and information. Accessing any Linked Sites shall be at your own risk.

IP rights

This website and its content are owned by Fair Oaks Capital Limited, and may contain information, text, graphics, video, software, logos, and other materials (“Content”) that are protected by copyright, trademarks, or other proprietary rights. No permission is granted to upload, copy, modify, post, frame, amend or distribute any of the Content of this website in any way without obtaining the prior written permission of Fair Oaks Capital Limited. All intellectual property rights in any part of the world which subsist in the Contents of this website and which belong to Fair Oaks Capital Limited, save as expressly granted, are hereby reserved. This website contains various registered and unregistered trade marks belonging to Fair Oaks Capital Limited. The registered trademarks include, but are not limited to, “Fair Oaks”, “Fair Oaks Capital” and the Fair Oaks Capital logo.

Jurisdiction

Use of this website shall be governed by and construed in accordance with the laws of England and Wales and any dispute arising in relation to this website is subject to the jurisdiction of the English courts.

Variation of Terms of Use

We reserve the right to vary these terms of use at any time and will post any variations here. You are advised to review these terms of use on a regular basis as you will be deemed to have accepted variations if you continue to use the website after they have been posted.

The contents of this website are only accessible by Professional Clients and Eligible Counterparties. Retail Investors should not view or seek to rely on any information contained in this website and should in all instances consult their financial adviser. The Prospectus, Financial Reports and Key Investor Information Documents relating to the ETF Class(es) of the Fund referenced on this website can be found at www.waystone.com/our-funds/waystone-managed-funds/

Notice to Swiss Investors: By selecting “Professional Client”, you are confirming that you are a Qualified Investor in Switzerland as defined in the Swiss Collective Investment Schemes Act of 23 June 2006, as amended and its implementing ordinance. This website can only be accessed in Switzerland by Qualified Investors.

If you are not a Qualified Investor in Switzerland (as defined in the Swiss Collective Investment Schemes Act of 23 June 2006, as amended and its implementing ordinance) then please leave this website now. Certain of the products on this website may not be distributed other than to Qualified Investors.

The Swiss representative and paying agent of the Fair Oaks AAA CLO Fund, a Luxembourg domiciled UCITS sub-fund, is RBC Investor Services Bank S.A., Esch-sur- Alzette, Zurich Branch, Bleicherweg 7, CH-8027 Zurich. The latest Prospectus, Key Investor Information Document (KIID), Articles of Association and annual and semi-annual reports relating to the Fair Oaks AAA CLO Fund can each be obtained free of charge from the Swiss representative and paying agent. The place of performance and jurisdiction is the registered office of the Swiss representative with regards to shares of the Fair Oaks AAA CLO Fund distributed in and from Switzerland.

Terms and Conditions

Important notice

This website is operated by Fair Oaks Capital Limited, a limited company registered in England and Wales, with registered number 08260598, having its registered office at 1 Old Queen Street, London, SW1H 9JA. By using this website, you agree to these Terms and Conditions of Use, as well as to Fair Oaks Capital Limited’s Privacy Notice and Cookies Policy (together the “Terms”), which constitute a legal agreement between you and Fair Oaks Capital Limited governing your access to and use of this website. It is your responsibility to review the Terms and to make sure you understand and comply with them. Your compliance with the Terms is an ongoing condition to your use of this website, and you may not use it if you are not prepared to comply with all of the Terms.

Fair Oaks Capital Limited is authorised and regulated by the UK Financial Conduct Authority (“FCA”). References to “we” or “us” shall mean Fair Oaks Capital Limited and, where relevant, its affiliates, including Fair Oaks Capital US LP. Fair Oaks Capital US LP is a Delaware limited partnership with its place of business at 152 West 57 Street, New York, NY 10019.

Content of this website

This website is provided for your general information only and does not constitute investment advice or an offer to sell or the solicitation of an offer to buy any investment.

Nothing on this website is advice on the merits of any product or investment, nothing constitutes investment, legal, tax or any other advice nor is it to be relied on in making an investment decision. Prospective investors should obtain independent investment advice and inform themselves as to applicable legal requirements, exchange control regulations and taxes in their jurisdiction.

This website complies with the regulatory requirements of the United Kingdom. There may be laws in your country of nationality or residence or in the country from which you access this website which restrict the extent to which the website may be made available to you. If you are not permitted to access this website in accordance with the laws of your country or nationality of residence then please leave this website now.

Certain information contained on this website may be of a historical nature and may now be out of date. All historical information should be understood as speaking from the date of its first publication.

Likewise, this website may contain forward-looking statements. These forward-looking statements are subject to uncertainties and inherent risks that could cause actual results to differ materially from those contained in any forward-looking statement. We undertake no duty to update publicly any forward-looking statements contained herein, in light of new information or future developments.

Although the information provided to you on this website is obtained or compiled from sources we believe to be reliable, we cannot and do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available to you for any particular purpose. All information published is in good faith but no representation or warranty, express or implied, is made by us or any person as to its accuracy or completeness and it should not be relied on as such. We shall have no liability for any loss or damage arising out of the use of or reliance on the information provided including, without limitation, any loss or other damage, direct or consequential.

We have published a number of articles in the Insights section of this website. Opinions in such articles are our current opinions, and are subject to change without notice. We assume no responsibility to update information contained in such articles or to notify you of any changes. Any outlooks, forecasts or portfolio weightings presented in such articles are as of the date appearing therein and are also subject to change without notice. We disclaim any responsibility to update such views. Such commentary is intended for ‘institutional investors’ only (as such term is defined in various jurisdictions). Such commentary does not constitute an offer to sell any securities or the solicitation of an offer to purchase any securities. Such commentary discusses topical aspects of credit markets and should not be construed as research, investment advice, or any investment recommendation. Investment concepts mentioned in such commentary may be unsuitable for investors depending on their specific investment objectives and financial position. Fees, commissions, tax considerations and other transaction costs may significantly affect the economic consequences of any investment concepts referenced in such commentary and should be reviewed carefully with one’s investment and tax advisers. All information in such commentary is believed to be reliable as of the date on which this commentary was issued, and has been obtained from sources believed to be reliable. No representation or warranty, either express or implied, is provided in relation to the accuracy or completeness of fairness of the information or opinions contained therein.

Distribution of information

The distribution of the information and material on this website may be restricted by law in certain countries. None of the information is directed at, or is intended for distribution to, or use by, any person or entity in any jurisdiction (by virtue of nationality, place of residence, domicile or registered office) where publication, distribution or use of such information would be contrary to local law or regulation, or would subject us to any registration or licensing requirements in such jurisdiction. You must inform yourself about, and observe any such restrictions in your jurisdiction and by accessing this website you represent that you have done so. The information on this website is not for distribution and does not constitute an offer to sell or the solicitation of any offer to buy any securities in the United States to or for the benefit of any United States person (being residents of the United States or partnerships or corporations organised under the laws thereof). None of the funds or other investment products contained on this website have been registered in the United States under the Investment Company Act of 1940 and interests therein are not registered in the United States under the Securities Act of 1933.

We may monitor and/or record any telephone communications and electronic communications with you.

Risk Warnings

Investments can involve significant risk. Past performance is not a guarantee of future performance. The price of investments can go down as well as up and may be affected by changes in rates of exchange. An investor may not get back the amount invested. Target returns and distributions are hypothetical targets only and are neither guarantees nor predictions or projections of future performance. There can be no assurance that such targeted returns will be achieved. The price of investments listed on an exchange is determined by supply and demand, and may not equate to the value of the investment’s underlying assets. Any decision to investment should be based on the information contained in the appropriate prospectus, offering memorandum or equivalent contractual document and after seeking independent investment, tax and legal advice.

Linked Websites

This website may provide addresses or hyperlinks which lead you to other websites (“Linked Sites”). We have not reviewed nor do we endorse or recommend any products or services offered or information contained on Linked Sites, and disclaim any liability for their content or any consequences of their use. Any web addresses and hyperlinks in this website are provided solely for convenience and information. Accessing any Linked Sites shall be at your own risk.

IP rights

This website and its content are owned by Fair Oaks Capital Limited, and may contain information, text, graphics, video, software, logos, and other materials (“Content”) that are protected by copyright, trademarks, or other proprietary rights. No permission is granted to upload, copy, modify, post, frame, amend or distribute any of the Content of this website in any way without obtaining the prior written permission of Fair Oaks Capital Limited. All intellectual property rights in any part of the world which subsist in the Contents of this website and which belong to Fair Oaks Capital Limited, save as expressly granted, are hereby reserved. This website contains various registered and unregistered trade marks belonging to Fair Oaks Capital Limited. The registered trademarks include, but are not limited to, “Fair Oaks”, “Fair Oaks Capital” and the Fair Oaks Capital logo.

Jurisdiction

Use of this website shall be governed by and construed in accordance with the laws of England and Wales and any dispute arising in relation to this website is subject to the jurisdiction of the English courts.

Variation of Terms of Use

We reserve the right to vary these terms of use at any time and will post any variations here. You are advised to review these terms of use on a regular basis as you will be deemed to have accepted variations if you continue to use the website after they have been posted.

✕

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