Trading commenced 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.

Fair Oaks AAA CLO ETF (FAAA) invests 100 per cent in AAA-rated CLOs, based on Fair Oaks’ established investment processes. It is managed by a team of six professionals, 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. The total expense ratio for the Fair Oaks AAA CLO ETF is 0.35 per cent. All assets are compliant with EU and UK securitisation (risk-retention) regulations – a requirement for EU and UK ‘institutional investors’ as defined in those regulations.

FAAA was launched on the Alpha UCITS fund platform as an additional listed share class of an existing Fair Oaks UCITS fund, the Fair Oaks AAA CLO Fund (the Fund). The Fund was launched with Alpha UCITS in 2019 and has over EUR150 million in assets under management (AUM) as of August 31, 2024. The ETF share class offers investors access to the existing high-quality, diversified portfolio. FAAA is a long-only portfolio with no leverage and is classified as Article 8 under the EU Sustainable Finance Disclosure Regulation (SFDR).

Ramos Fuentenebro says: “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 per cent AAA-rated CLOs in an ETF wrapper for the first time in Euros and British pounds,” says Stephane Diederich, CEO of the Alpha UCITS fund platform.

The firms write that Future Growth Capital (FGC) will, subject to all regulatory approvals, support the objectives of the UK’s Mansion House Compact, unlocking investment opportunities in private markets for millions of new pension savers to benefit from the diversification and investment return opportunities that unlisted assets can offer.

FGC aims to deploy an initial GBP1bn and GBP10-20 billion over the next 10 years into UK and global private markets. Phoenix Group intends to invest 5 per cent of its relevant savings products on behalf of its policyholders, in line with its Mansion House Compact commitment. This will provide scale at inception, with ongoing fundraising led by both Schroders and Phoenix Group.

The new investment manager will design and manage UK and Global multi-private asset solutions for UK insurance and pension clients to open access to a broader range of innovative companies and investment opportunities for millions of UK pension clients. Initially it will leverage Schroders’ pioneering Long-Term Asset Fund (LTAF) investment platform, providing investment advice to the fourth and fifth LTAFs planned for launch by Schroders’ dedicated private markets business, Schroders Capital, in the UK.

The firms write that a key focus of FGC will be investing on behalf of pension savers to grow the UK’s companies of the future. FGC will provide long-term financing for innovative, growing businesses, helping to create jobs and boost the UK economy. As a major investor in the UK’s private markets, it will help to develop the UK private market ecosystem and to promote the UK as an attractive private market investment destination.

Chancellor of Exchequer Rachel Reeves says: “I welcome today’s multi-billion-pound announcement from Schroders and Phoenix Group, which will ensure that more of people’s pension savings are invested into the UK’s highest growing companies. We want pension fund money to work harder for people and the economy. That’s why our pensions review will explore how we can unlock even more investment in the UK economy while boosting pension pots.”

Peter Harrison, Group Chief Executive Officer, Schroders, says: “The UK’s private companies are an untapped universe of investment opportunity. By stimulating investment into our private markets, our partnership will address the multiple challenges of the looming retirement crisis and boosting UK growth. By connecting long-term savers with our country’s most inventive companies, Future Growth Capital will help more people to fund a secure and comfortable retirement, whilst supporting businesses to grow and thrive right here in the UK. In doing so, we’ll be making the UK an even more attractive place to live, work, retire and invest.”

Andy Briggs, Group Chief Executive Officer, Phoenix Group, says: “For too long, pension savers in the UK have received lower returns than their counterparts in the P7 such as Australia and Canada, partly because the UK allocates much less capital to private market assets than other developed countries. By forming FGC with Schroders, it will help us to deliver our goal of giving UK long-term savers a way to invest in a more diversified portfolio with the potential for higher returns, from a broader range of assets. This facility will also play a significant role in the future design of our flagship defaults. FGC will be a long-term, patient capital investment manager, constructed to ensure that customer protection remains at its core by taking a blended approach to asset allocation.”

Commenting on the announcement, Ashish Patel, a Managing Director in Houlihan Lokey’s Capital Markets Group, says:

“This development is a significant step forward, enabling UK pension funds to provide savers with better access to high-quality private businesses while unlocking much-needed capital to finance UK ‘scale-ups’. Overseas pension funds (including Ontario Teachers’ Pension Plan and Canada Pension Plan Investment Board) have long been active participants in supporting UK tech firms on their path to international success, yielding impressive results for their investors. We hope that UK pension fund savers will similarly benefit from the venture.

“Overall, the Mansion House Compact has been well received within the venture capital ecosystem, but its true impact will be determined by the extent of investment in early-stage startups, which are already well-supported by tax-advantaged schemes like SEIS/EIS/VCTs, versus growth-stage scale-ups, where a significant funding gap remains between Europe and the US.”

Phoenix Group and Schroders write that the full benefits of FGC include:

A partner for UK pension savers

Longer lifetimes and low savings rates mean that more than half of UK Defined Contribution (DC) savers are currently not on track to meet the PLSA’s minimum retirement living standard. Private markets offer pension and other long-term savers much-needed diversification and the potential for higher investment returns to help boost their retirement incomes. To benefit UK pension savers and access the returns from private markets, FGC will launch UK and Global LTAFs, offering diversified exposure to a broad range of UK and global private market opportunities. FGC’s solutions will aim to deliver superior returns to pension savers, allowing them to invest efficiently and with confidence.

A partner for UK business

FGC will also align with the aims of the Mansion House Compact, of which Phoenix is a signatory and which Schroders endorses, by connecting the long-term investment needs of pension savers with the long-term financing needs of the UK’s most innovative companies.

There are approximately 35,900 medium sized private companies in the UK, compared to just 1,900 companies listed on the London Stock Exchange. The UK is a centre for technological and industrial innovation, but there is a shortage of home-grown financing to support new, emerging businesses. FGC will invest in the UK’s businesses of the future, providing the long-term financing they need to grow and remain in the UK. FGC will support the goals of the Capital Markets Industry Taskforce (CMIT), of which both Schroders and Phoenix are committed supporters.

Championing the UK

FGC will also promote the UK as an attractive private market investment destination internationally and spotlight the many world-leading private companies that we have. This builds upon the recently announced partnership between Schroders, Phoenix Group and the British Business Bank to support the government’s Long- term Investment for Technology and Science initiative, which aims to stimulate venture and growth investment in the UK’s life science and technology companies.

The Octopus Natural Capital Strategy (the Strategy) aims to generate high-integrity carbon removal credits through comprehensive conservation and land management. It will look to provide investors with attractive, sustainable returns and the opportunity to accelerate the transition to net zero by kick-starting the natural capital economy.

The Strategy will initially have a UK focus, looking at the acquisition of land-based assets with conservation potential, and will be exploring ancillary revenue streams tailored to each project and locality: whether this is property restoration, biodiversity net gain credits, regenerative agriculture, ecotourism or renewable energy.

The Strategy will be led by Alex Godfrey, recently appointed as Investment Director. Alex is a seasoned professional in the field of natural capital, regenerative agriculture and climate finance, with over 15 years of experience in investment banking, venture building and environmental consulting. Godfrey joins Octopus from Savills, where he was Head of Natural Capital (Rural and Projects), leading the development and delivery of innovative solutions for landowners, investors and policymakers, leveraging his expertise in carbon markets, biodiversity, and water.

Reporting to Mike Toft, Senior Fund Manager, the firm writes that Godfrey will be honing the Octopus approach to high quality credits, focusing on data-led monitoring, co-benefits of biodiversity, improving the ecosystem, permanence and transparency. The firm writes that he will also play a key role in fostering strong relationships with local communities and sourcing best-in-class, trusted operators to partner with ensuring the Strategy is built on quality conservation.

Octopus Investments has set itself an ambitious goal to grow its assets under management from GBP13 billion to GBP50 billion by 2030. The firm writes that a large proportion of this growth will come from the expansion of the institutional business. In recent years Octopus has launched several funds, including the Octopus Sustainable Infrastructure Fund and the Octopus Affordable Housing Fund. This move into natural capital is the next part of this plan, the firm says.

Mike Toft says: “Climate change is the biggest challenge of our time and while reducing carbon emissions to reach net zero targets is key to addressing this challenge, we will not reach this goal by decarbonisation alone. We know that more high-quality carbon credits need to be generated to help offset carbon and accelerate our net zero efforts.

“We also know that companies want to do the right thing for all stakeholders; the planet, their customers, shareholders and employees. With their own net zero targets approaching, they too are increasingly realising that offsetting will need to play a critical part in that journey. We are aiming to meet this demand through our holistic, nature-based strategy and with Alex now on board with his on the ground conservation experience, we are even better placed to do so.”

Alex Godfrey says: “I have seen over the years how Octopus makes use of its capital. With its entrepreneurial approach and ability to provide innovative solutions to sectors ripe for change, Octopus aims to tackle some of society’s biggest challenges. In the past there has been huge success with solar power, care homes and the energy transition.

“I’m excited to be part of this next priority area for Octopus with natural capital having similar characteristics to these previous big wins; a specialist area in an underdeveloped part of the market that is expected to grow exponentially. I look forward to bringing this to life, creating impact and generating sustainable investment returns for our investors.”

More information can be found here.

The fund will be co-managed by Alex Ralph and David Roberts, who have over 50 years’ combined industry experience. Alex Ralph spent over 15 years at Artemis, where she set up and managed the GBP1.8 billion Artemis Strategic Bond fund. David Roberts spent 14 years at Aegon Asset Management (formerly Kames Capital) as head of fixed income, and was also formerly head of global bonds at Liontrust Asset Management.

The core, active fund will focus on interest rate and credit risk, within an unlevered core global bond portfolio that emphasises liquidity. The managers will avoid lower-quality bonds which are illiquid.

Alex Ralph, co-manager of the fund, says: “We believe the current market offers the perfect opportunity for bond investors to go back to the core, whereby bonds now constitute the value part of a portfolio. Many leading bond funds have chased growth, but we will restrict equity-like assets such as high yield, EM and subordinated debt as investors will need to broaden their risk approach in this new regime.”

David Roberts, says: “Bond markets can be inefficient and often deviate away from their fair value. Our value-driven philosophy and nimble portfolio management means that investors will benefit from a combination of long-term capital growth and income.”

Tom Caddick, managing director of Nedgroup Investments says: “This fund is a rare proposition in the bond market, as it combines a liquid and unlevered core global bond portfolio with a value-oriented approach to interest rate and credit risk. Alex and David are managers I have known and respected for the last 20 years so it is a thrill to see Nedgroup’s strategy of finding compelling managers, and enabling them to launch their own boutique strategies, take shape.

“For us, it is testament to our long-term investment-led, entrepreneurial approach to finding excellence, and for our investors it means we can offer them increased choice competitive edge, accessing exceptional fund managers that they would not be able to invest with otherwise.”

The strategy of the fund will be to outperform the Bloomberg Global Aggregate Total Return Index (US$ hedged) over a rolling three-year period. Its base currency is USD, but hedged share classes are available in GBP and EUR. Duration is three to eight years and the fund is article 8.

It is currently available on the following platforms:

Hargreaves Lansdown

Interactive Investor

Aviva

Fundment

Quilter

Transact

Wealthtime /Novia

The firm writes that the fund, managed by the MSIM Hedge Funds team, leverages a diversified set of investment strategies across different asset classes, including equity, fixed income, cash equivalents, currencies and commodities, targeting market neutral performance at an annualised volatility of 8 per cent over the long-term.

Eban Cucinotta, portfolio manager and head of portfolio construction and quantitative analytics for the MSIM Hedge Funds team says: “We have used systematically driven, academically-based alternative sources of return in our custom portfolio solutions for many years and believe them to be an integral part of an investor’s toolkit. We are excited to bring to market the Systematic Liquid Alpha strategy which we believe offers efficient access to these potentially diversifying exposures, in a daily dealing UCITS wrapper after managing the strategy live since August 2018 in offshore vehicles.”

MSIM writes that its Hedge Funds team has over 20 years experience leveraging their size, scale, and expertise to deliver a unique set of exposures and portfolio solutions to a global client base. With over USD25 billion in assets under management/advisement, the team seeks to generate attractive, uncorrelated risk-adjusted returns to meet evolving investor objectives.

Rob Lunn, head of UK distribution at MSIM says: “We are delighted to bring this compelling strategy to the UK market. Designed for investors interested in gaining access to alternative asset classes, the Systematic Liquid Alpha Fund’s multi-asset approach and experienced management team make it an appealing option for investors looking to diversify their portfolios and reduce volatility. By focusing outside of traditional asset classes, the Fund offers investors seeking portfolio diversification broad exposure to market neutral factors in a liquid format.”

This is the second vintage of BNPP AM’s European Private Equity co-investment strategy, after the full deployment of BNP Paribas Agility Fund, a EUR739 million co-investment fund raised over 2020 and 2021.

Agility 2 aims to build a resilient and diversified portfolio of 30 to 50 minority equity investments across a wide range of industries and with a pan-European focus.  The investments will take the form of co-investments, flex equity and GP-led deals and will range from EUR10 million to EUR50 million each.

The firm writes that Agility 2 will be managed by a seasoned team of 15 investment professionals located in Paris, Brussels and Madrid and will rely on a 15 year track record of in-depth analysis and deal selection.  It will leverage BNPP AM Private Assets’ Fund Platform, which has relationship with 170 general partners (‘GPs’) and AUM of EUR15 billion, to originate co-investment opportunities from the best European GPs.

Agility 2 targets a size of EUR700 million to EUR900 million and benefits from a EUR300 million anchor investment from BNP Paribas.  Agility 2 is an Article 8 fund according to SFDR regulation.

Lionel Gomez and Damien Fournier, co-heads of BNPP AM’s Private Equity team says: “Agility 2 builds on the success of the first vintage.  It will benefit from increased origination capabilities thanks to BNPP AM Private Assets’ Fund Platform and from enhanced ESG capabilities with the support of BNPP AM’s Sustainability Centre.  We believe this new vintage is a great opportunity to showcase our ability to target the best risk-adjusted returns through diversification and portfolio construction”.

Agility 2 will be managed by BNPP AM Private Assets, a specialist investment division established at the beginning of 2023.  BNPP AM Private Assets combines a range of private asset management expertise from across the BNP Paribas Group. BNPP AM Private Assets has assets under management and advisory of EUR40 billion.

“We expect these new funds to appeal to clients due to the strength of the investment themes and the team’s proprietary investment process, an active and systematic approach that has been developed and enhanced over more than 19 years.”

The new range comprises:

Jupiter Systematic Disruptive Technology Fund

Jupiter Systematic Consumer Trends Fund

Jupiter Systematic Healthcare Innovation Fund

Jupiter Systematic Demographic Opportunities Fund

Jupiter Systematic Physical World Fund.

The firm writes that the six-strong investment team is led by Amadeo Alentorn, who has been instrumental to the investment approach since inception, having joined the team in 2005. The members of the wider team have worked with each other, and on the investment approach, for an average of 11 years. They will be supported by Jupiter’s eight-strong in-house Data Science team, as well as the firm’s external network of experts and academics.

Amadeo Alentorn, Head of Systematic Equities at Jupiter Asset Management, says:

“We are excited to bring to market what we believe is a truly differentiated range of systematic thematic funds. There have been strong inflows into thematic investing in the last decade and asset managers have sought to differentiate themselves by increasingly narrow specialisation, which has led to more volatile returns.

“We do not differentiate our thematic funds through over-specialisation of theme, but through our unique, active and systematic investment process. While we are fund managers, we are also computer programmers and have developed over many years our own sophisticated software to swiftly and continuously analyse large amounts of data on a broad universe of stocks. This increases diversification and can help to stabilise returns.”

Kiran Nandra, Head of Equities at Jupiter Asset Management, says: “Launching a range of thematic equities funds is a strategic priority for the firm and the investment themes we have chosen are at the cutting edge of structural change on a global scale. The strategies also have a flexible investment style, which means they can balance exposure to value and growth in accordance with prevailing market conditions. They will include cyclical and defensive components and seek active alpha opportunities over the whole economic cycle.

“The systematic equities team are well-placed to manage this unique proposition, given their deep experience and proven expertise at a time when technology is redefining opportunities for investment managers and their clients.”

The firm writes that Vietnam benefits from the trend in China, and globally, to outsource supply and production. The country has a young, well-educated population, creating a skilled work force and attractive wages. Its economy, supported by a raft of trade agreements and solid infrastructure, is very attractive to Foreign Direct Investment (FDI) and enjoys a stable political environment and economic policies. Vietnam’s ambition, as living standards improve and its industries move up the value chain, is to be classified as an emerging market within five years.

Shasha Li Mafli will manage the Fund and has more than 20 years of experience managing Asian investment portfolios, including a track record of consistent performance in Vietnamese equities.

“Vietnam is at a sweet spot in Asia, growing strongly with many of the pre-requisite factors in place for economic expansion as it urbanises and industrialises,” says Shasha Li Mafli. “We think that the country is positioned to enjoy the kind of growth that China has experienced over the past 15 years.”

“Shasha has experienced first-hand the transformation of China into a middle-income economy and she firmly expects Vietnam to follow the same growth trend,” says Andreas Söderholm, Head of Asset Management, Switzerland. “The new Fund matches our philosophy of working with outstanding managers to invest in specialist, active strategies to generate performance for our clients.”

The Strategic Vietnam Prosperity Fund is a UCITS fund, catering specifically to professional and institutional investors seeking exposure to Vietnam.

Complementary expertise combines to offer comprehensive financing solution to projects and players involved in energy transition and climate change mitigation, the firm says.

The Fund aims to support energy transition projects across continental Europe; EUR500-750 million targeted from institutional investors, three investments already secured

BNP Paribas announces the launch of BNP Paribas Climate Impact Infrastructure Debt, an initiative supported by the aligned commitments of BNP Paribas Asset Management (‘BNPP AM’), BNP Paribas Corporate & Institutional Banking (‘BNPP CIB’) and BNP Paribas Cardif to finance climate change mitigation.

Managed by BNPP AM’s Private Assets division, BNP Paribas Climate Impact Infrastructure Debt is structured as a Luxembourg Reserved Alternative Investment Fund (‘RAIF’) and classified as Article 9 under SFDR.  The fund is targeting EUR500-750 million from institutional investors, including BNP Paribas Cardif’s seeding commitment.  It will have an investment grade profile and is expected to allocate to transactions in continental European countries, supporting energy transition projects that are in line with its investment philosophy by focusing on renewable energy, clean mobility and the circular economy, including new sectors such as batteries, hydrogen and carbon capture.

Three investments have already been secured for the fund, with financing for a low-carbon energy producer, a green-sourced district heating platform and a portfolio of onshore wind farms.

The firm writes that the collaboration within the BNP Paribas Group will ensure unique and scalable origination from both the wider market and internal origination teams.  Sourcing capability will benefit from the market-leading origination capabilities of BNP Paribas CIB’s Low Carbon Transition Group, with more than 200 dedicated investment professionals advising on and originating low carbon assets and an annual global origination in excess of EUR20 billion, together with BNPP AM’s track record of investment in infrastructure and sustainable finance.

Karen Azoulay, Head of Real Assets at BNPP AM Private Assets, comments: “Since the establishment of our Private Assets investment division, environmental solutions have been a key strategic focus.  The launch of Climate Impact Infrastructure Debt confirms this and marks a significant step forward in our ongoing efforts to support financing the transition to a low carbon economy and offering our clients BNP Paribas’ unique origination capacity within this asset class.”

Olivier Hereil, Deputy CEO for Asset Management at BNP Paribas Cardif, comments: “As a responsible investor, we are proud to collaborate on the launch of Climate Impact Infrastructure Debt.  Echoing BNP Paribas Group’s energy transition policy, our conviction at BNP Paribas Cardif is that it is essential to manage policyholders’ savings with a long-term perspective by combining financial performance with a positive impact on society.  This new investment is part of our commitment to allocate an average of EUR 1 billion per year to positive impact investments by the end of 2025.”

Khoi Anh Berger Luong, Head of Real Assets for EMEA at BNP Paribas CIB, comments: “Benefiting from our powerful integrated bank model, this new fund is further evidence of our accelerating low carbon expertise buildout in support of our corporate clients.  It offers a differentiated strategy to financial institutional investors to deploy their capital in the transition of the real economy.”

Séverine Mateo, Global Head of BNP Paribas’ Low-Carbon Transition Group, comments: “Combining BNP Paribas’ origination, distribution and investment capabilities within low carbon transition is perfectly aligned with the Group’s strategy to accelerate the transition to a lower carbon and more sustainable economy.”

BlackRock writes that European real estate markets have recently repriced more swiftly than other regions. Amid stabilising interest rates and inflation, EFVI, the latest vintage in BlackRock’s European value-add series, plans to take advantage of this attractive entry point.

The Fund will target the most liquid markets in Europe, with a focus on the UK, France, Germany, the Nordics and Spain; and invest in high-quality assets aligned with the structural “mega forces” driving the economy and future occupier demand. These mega forces include demographic shifts, digital disruption and the transition to a low-carbon economy and a net zero built environment.

The Fund will focus on, amongst others, the need to develop student housing and new residential units, and to provide business-critical logistics and data centre premises in under-supplied markets. As an SFDR Article 8 fund, EFVI aims to create future-proof assets with strong ESG credentials, including high-energy efficiency and pathways to net-zero emissions.

Business plans will focus on recapitalising, repositioning, and rebuilding assets with the BlackRock teams using a hands-on approach to deliver value throughout the life cycle of each investment.

BlackRock’s broad network, extensive research capabilities and on-the-ground presence across European regions creates an ability to source off-market opportunities for its clients – an important source of deal flow across recent vintages. To date, EFVI has already committed EUR289 million of equity across four investments: two logistics assets in Sweden, and multi-family assets and student housing in the UK.

Anne Valentine Andrews, Global Head of Real Estate & Infrastructure at BlackRock says: “The European Value-Add series is a vital component of our USD28 billion global private equity real estate business. Despite continued market uncertainty, the window of opportunity is opening for real estate investors. This requires getting granular within asset classes and harnessing the structural mega forces driving future demand and requirements for real estate. We are pleased to partner with our clients in this latest vintage, delivering local market knowledge and personalized service from BlackRock.”

Thomas Mueller-Borja, Global CIO of Value-Add Real Estate and Co-Portfolio Manager of EFVI, says: “We are delighted to partner with our clients, many of whom have committed to prior EF vintages. Cyclical and structural factors are creating what we believe is the best real estate buying opportunity since 2008. It is crucial to remain disciplined and selective in more volatile times, and we continue to apply the research-led, principle-based investment approach which has consistently guided our decision-making over the years.”

Tatiana Tezel, Co-Portfolio Manager of EFVI, said: “We continue to see attractive opportunities in the European real estate market, particularly as inflation and interest rates stabilise. We have already committed EUR289 million of equity to a range of exciting projects, all of which the team sourced off-market and negotiated attractive entry prices on. We continue to find new opportunities and have developed a diverse pipeline of investments under exclusivity. We’re focusing on fast-growing locations and resilient sectors and developing high quality real estate that meets tenant requirements now and in the future.”