Title: Fair Oaks Income Factsheet URL Source: https://www.fundslibrary.co.uk/FundsLibrary.DataRetrieval/Documents.aspx?type=packet_fund_class_doc_factsheet_private&id=a35825e4-bfcd-41b5-a885-0c7193ad4715&user=hl_website_documents Published Time: Tue, 31 Mar 2026 15:21:48 GMT Number of Pages: 5 Markdown Content: Background and investment objective The investment objective of Fair Oaks Income Ltd (the “Company”) is to generate attractive, risk-adjusted returns, principally through income distributions. The Company will implement its investment policy by investing in FOMC LP (“Fund”) and FOIF II LP (“Fund II”). The investment policy of the Company is to seek exposure to US and European CLOs or other vehicles and structures which provide exposure to portfolios consisting primarily of US and European floating-rate senior secured loans and which may include non-recourse financing. The Company was admitted to trading on the Specialist Fund Market of the London Stock Exchange (now the Specialist Fund Segment of the Main Market of the London Stock Exchange) on 12 June 2014. ## Fund performance 1 # $181.4 million ## Ordinary Share Class market capitalisation # $190.3 million ## Total Company market capitalisation # 12–14% ## Target total return ## Ordinary shares Price per Share $0.466 NAV per Share $0.474 Premium / (Discount) to NAV -1.65% Annualised inception to date NAV return 1 8.8% Annualised inception to date price return 1 9.1% Share Class market capitalisation $181.4 million Shares in issue 389.3 million ## Fund facts Type of fund Closed-ended investment fund Listing and trading LSE Main Market – SFS Launch date 12-Jun-14 Launch price $1 per Ordinary Share Dividend Quarterly Dealing Daily during LSE opening hours NAV calculation As of the last business day of each month Currency $ denominated ISA and SIPP eligible Yes Management fee 1.0% of NAV p.a. Effective management fee after discounts 0.4% of NAV p.a. Performance fee 15% over a 7% hurdle Catch-up No Ordinary Share ISIN GG00BNNLWT35 ## Service providers Investment advisor Fair Oaks Capital Limited Board of Directors Fully independent Administrator Apex Fund and Corporate Services (Guernsey) Limited Custodian BNP Paribas Securities Services S.C.A. Joint brokers Numis Securities Ltd Liberum Capital Ltd Auditor KPMG (Channel Islands) Limited 1 MONTH 3 MONTH 1 YEAR 5 YEAR ORDINARY SHARE PRICE (FAIR) 0.00% -1.05% -2.26% +57.16% ORDINARY SHARE NAV (FAIR) -1.84% -2.08% +2.56% +50.88% JP MORGAN LEVERAGED LOAN INDEX -0.77% -0.36% +4.00% +34.50% JP MORGAN HIGH YIELD INDEX +0.10% +1.28% +7.16% +26.81% 1 ## Investment opportunity The General Partner of the Master Funds (the “GP”) believes that diversified portfolios of secured bank loans may provide an attractive risk-return profile when financed with well-structured long-term financing. The GP believes the key to successful investment in secured bank loans is an understanding of, and focus on, the credit quality of the underlying corporate borrowers. To this end, portfolio financing structures (such as CLOs) need to be managed efficiently and effectively in order to enhance returns without introducing any mark-to-market or other non-credit risks. ## Contact information FAIR OAKS CAPITAL LIMITED 1 Old Queen Street London SW1H 9JA IR@fairoakscap.com James Glass DEUTSCHE NUMIS 45 Gresham Street London EC2V 7BF fairoaks@numis.com James Shields PANMURE LIBERUM Ropemaker Place 25 Ropemaker Street London EC2Y 9LY james.shields@panmureliberum.com ## Data as at 27-Feb-26 Please refer to the footnotes for the important information on page 8. Past performance is no indication of future results. Inherent in any investment is the potential for loss. Copyright © 2026 Fair Oaks Capital Ltd. All rights reserved. 50% 70% 90% 110% 130% 150% 170% 190% 210% 230% 250% Jun-14 Jun-16 Jun-18 Jun-20 Jun-22 Jun-24 Total Return (Share Price) Total Return (NAV) Company performance 1 The Ordinary Share NAV was $47.38c at the end of February, marking a -1.84% decrease for the month. The Ordinary Shares closed at a price of $46.60c, a 0.00% change for the month. The Realisation Share NAV was $53.51c as of February 27 th . ## Market commentary In February, the trailing 12-month loan default rate increased from 1.3% to 1.4% in the US and decreased from 1.6% to 1.4% in Europe. The distress ratio increased from 7.7% to 8.9% in the US and from 4.7% to 5.3% in Europe.² The increase in distress ratio can be largely attributed to the ongoing software sector concerns over potential AI impact continuing to weigh on the leveraged loan markets. Over February, the average bid loan price fell from 95.7c to 94.6c in the US and from 95.9c to 95.2c in Europe. 3 Year-to-date, software has returned -7.01% in Europe. 4 European loans have proven more resilient than their US counterparts, reflecting lower average software exposure of approximately 10% in European CLOs versus 15-16% in US BSL CLOs. 5 Moving into March, geopolitical tensions escalated following US and Israeli strikes on Iran, reigniting conflict across the Middle East. The resulting volatility in energy markets has contributed to the more cautious tone across risk assets, reflected by European loan prices declining further to 94.4c by March 10th. 3 We expect primary CLO issuance to quieten in the near term as participants assess the broader implications for credit markets. However, direct exposure within CLO portfolios to issuers materially affected by the Iran conflict remains limited, and such periods of market dislocation can create opportunities for constructive portfolio rotations and risk mitigation. Despite this backdrop, February remained robust for the European CLO market, which continued its record-breaking momentum. Primary issuance reached €9.3bn, surpassing the previous high of €9.0bn set in February 2025, while refinancing and reset volumes were also strong at €7.7bn, well above the European twelve-month average of €5.7bn. 6 ETF flow data in early March highlighted a divergence between European and US markets, as US CLO ETFs experienced outflows of more than $1bn 7during the period while EUR CLO ETFs were broadly flat over the same timeframe. 8 This indicates resilient European investor demand even as sentiment softened across parts of the credit market. ## Company update The Fund announced its regular quarterly dividend distributions of $0.02 per share in February. ## CLO portfolio rating and currency breakdown (Feb-26) 9 ## Top 10 issuers and portfolio data 10 Rating breakdown 9,12 > 2 ISSUER COMPANY RATING (Moody’s) % GROSS 12 MOODY’S INDUSTRY CLASSIFICATION COUNTRY > Ineos Group B2 1.13% Chemicals, Plastics & Rubber United States > Groupe Inovie B3 1.05% Healthcare & Pharmaceuticals France > Sante Cie B2 0.91% Healthcare & Pharmaceuticals France > Ziggo B1 0.90% Telecommunications Netherlands > Mehilainen Yhtioet Oy B2 0.89% Healthcare & Pharmaceuticals Finland > Exact B2 0.88% High Tech Industries Netherlands > McAfee B1 0.87% High Tech Industries United States > Altadia B3 0.86% Construction & Building Spain > Polygon International B3 0.85% Environmental Industries Sweden > Adco B2 0.85% Services: Business Germany > TOTAL NUMBER OF ISSUERS IN THE PORTFOLIO: 513 > WEIGHTED AVERAGE ASSET SPREAD 10 :3.53% > WEIGHTED AVERAGE COST OF CLO FINANCING (SOFR / EURIBOR+) 11 :1.81% ## Industry diversification by Moody’s (top 10) 9 Please refer to the footnotes for the important information on page 8. Past performance is no indication of future results. Inherent in any investment is the potential for loss. Copyright © 2026 Fair Oaks Capital Ltd. All rights reserved. > CLO Equity subject to ESG investment restrictions: > 100% BB Rated CLO Notes, 1% B Rated CLO Notes, 38% Subordinated Notes, 61% USD, 7% EUR, 93% 14.7% 14.3% 8.0% 6.9% 6.5% 5.9% 5.5% 5.2% 3.9% 3.5% 0% 2% 4% 6% 8% 10% 12% 14% 16% Healthcare & Pharmaceuticals Services: Business High Tech Industries Construction & Building Beverage, Food & Tobacco Chemicals, Plastics & Rubber Telecommunications Services: Consumer Hotel, Gaming & Leisure Transportation: Cargo 0% 0% 1% 2% 5% 16% 49% 24% 2% 1% 0% 0% 10% 20% 30% 40% 50% 60% Baa3 and above Baa3 Ba1 Ba2 Ba3 B1 B2 B3 Caa1 Caa2 and below NR 3 Cash and cash equivalents 24 : $ 2,911,753 ## Fund holdings (Feb-26) Please refer to the footnotes for the important information on page 8. Past performance is no indication of future results. Inherent in any investment is the potential for loss. Copyright © 2026 Fair Oaks Capital Ltd. All rights reserved. CLO CONTROL EQUITY 13,14 Nominal amount 15 Current market valuation 16 Deal name Reinvestment end date %Defaults 17 % CCC (Moody’s) 18 Loans trading below 80c 19,20 Weighted average collateral bid price 20 Last cash payment (annualised yield on current market price) 21 Relevant OC test cushion 22 USD Equity $1,862,400 36.0% ALLEG 2021-1A SUB 2026 0.61% 4.30% 4.92% $95.5 25.4% 4.53% $20,686,608 72.0% ALLEG 2025-1X SUB 2030 0.00% 3.00% 2.58% $96.8 20.0% 5.02% Weighted average 25 69.0% 0.03% 3.06% 2.68% $96.7 25.4% 5.00% EUR Equity €20,113,608 37.6% FOAKS 1X SUB 23 2025 0.00% 4.90% 2.41% €95.5 43.7% 3.80% €33,762,128 28.6% FOAKS 2X SUB 23 2025 0.00% 5.30% 3.05% €95.7 36.0% 2.72% €25,142,010 42.7% FOAKS 3X SUB 23 2026 0.00% 3.81% 3.70% €95.2 24.3% 4.24% €20,113,608 55.5% FOAKS 4X SUB 23 2026 0.00% 5.20% 3.90% €95.4 27.9% 4.47% €19,107,928 70.7% FOAKS 5X SUB 23 2028 0.00% 0.70% 3.18% €96.2 17.1% 4.21% €18,231,549 74.7% FOAKS 6X SUB 23 2030 0.00% 0.00% 2.77% €96.9 42.1% 5.08% Weighted average 25 48.6% 0.00% 2.97% 3.19% €95.9 32.0% 4.17% Total weighted average 25 50.3% 0.00% 2.98% 3.14% $96.0 31.9% 4.27% 4 ## Fund holdings (Feb-26) Please refer to the footnotes for the important information on page 8. Past performance is no indication of future results. Inherent in any investment is the potential for loss. Copyright © 2026 Fair Oaks Capital Ltd. All rights reserved. CLO MEZZANINE Nominal amount 15 Current market valuation 16 Deal name Reinvestment end date Original rating Current rating %Defaults 17 % CCC (Moody’s) 18 Loans trading below 80c 19,20 Weighted average collateral bid price 20 Coupon Current yield (based on current market price) Relevant OC test cushion 22 EUR Mezz €1,396,800 99.2% FOAKS 2X ER 23 2025 BB Mezz 0.00% 5.30% 3.05% €95.7 Euribor+5.91% 7.99% 2.72% €3,663,550 96.3% FOAKS 4X F 23 2026 B Mezz 0.00% 5.20% 3.90% €95.4 Euribor+9.25% 11.70% 4.47% €7,363,017 94.3% FOAKS 6X F 23 2030 B Mezz 0.00% n.a. 2.77% €96.9 Euribor+8.05% 10.67% 5.08% €1,486,970 91.8% ACLO 12X F 2029 B Mezz 0.00% 3.25% 4.97% €95.4 Euribor+8.25% 11.19% 5.05% €1,724,024 96.3% AVOCA 16X FRR 2029 B Mezz 0.24% n.a. 2.23% €96.4 Euribor+8.42% 10.84% 3.55% €1,257,101 95.5% AVOCA 18X FR 2029 B Mezz 0.72% n.a. 2.98% €96.3 Euribor+8.28% 10.78% 3.81% €1,436,686 96.2% TRNTE 8X F 2029 B Mezz 0.00% 3.00% 3.84% €96.7 Euribor+8.42% 10.85% 4.95% €5,121,600 95.3% ARESE 22X F 2030 B Mezz 0.00% 0.00% 2.27% €96.5 Euribor+8.17% 10.69% 4.54% €4,656,000 95.5% AVOCA 15X FRR 2030 B Mezz 0.33% 3.53% 2.10% €96.6 Euribor+8.26% 10.76% 4.51% €6,518,400 88.8% SNDPE 15X F 2030 B Mezz 0.62% n.a. 6.04% €95.3 Euribor+8.16% 11.47% 4.54% €4,190,400 94.7% BCKTP 1X F 2030 B Mezz 0.00% 1.12% 2.84% €96.4 Euribor+8.13% 10.74% 5.41% €7,822,080 91.6% AQUE 11X F 2030 B Mezz 0.39% 2.72% 3.38% €95.9 Euribor+8.06% 11.01% 3.82% €1,862,400 94.3% OCPE 14X F 2030 B Mezz 0.00% n.a. 0.70% €97.5 Euribor+8.08% 10.72% 4.54% €1,955,520 93.7% AQUE 14X F 2030 B Mezz 0.00% 1.88% 1.90% €95.8 Euribor+8.10% 10.91% 5.09% Total weighted average 25 93.8% 0.19% 2.58% 3.22% €96.2 10.87% 4.52% Important information: The Net Asset Value and the portfolio valuations contained in this report are estimates and are based on unaudited estimated valuations. The final Net Asset Value and portfolio valuations of the Company may be materially different from the estimated values, which should only be taken as indicative values which have been provided for information only and upon which no reliance should be placed. The level of default for each portfolio holding is expressed as at a particular date and so may increase in the future. Actual results, performance or achievements may differ materially from estimated results, performance or achievements. Except as required by applicable law, the Company expressly disclaims any obligation to update or revise such estimates to reflect any change in expectations, new information, subsequent events or otherwise. This document is for information purposes only and is not an offer to invest. Prospective investors are advised to seek expert legal, financial, tax and other professional advice before making any investment decisions. Inception to date performance figures include share performance prior to the re-designation of the Company’s initial share class in 2017 and are calculated by reference to the estimated NAV on 12 June 2014, the date of admission to trading of the Company's initial share class. Due to applicable legal restrictions, electronic versions of these materials are not directed at, or accessible by, US Persons (as defined in Regulation S under the US Securities Act of 1933) or persons located in the United States, Australia, Canada, Japan, the EEA (except the UK, Luxembourg, Sweden and Finland) or South Africa, or any other jurisdiction where to do so would constitute a violation of the relevant laws of such jurisdiction. Past performance is no indication of future results. Inherent in any investment is the potential for loss. 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 Company (or the master fund in which it invests) will be able to implement its investment strategy, achieves its investment objective or avoid substantial losses. Neither the Company nor any class of shares of the Company has been approved by the Swiss Financial Market Supervisory Authority (“FINMA”) for offering to non-qualified investors pursuant to Art. 120 para. 1 of the Swiss Federal Act on Collective Investment Schemes of 23 June 2006, as amended (“CISA”). In addition, the Company has not and does not intend to appoint a Swiss representative or a Swiss paying agent for the shares of the Company offered in Switzerland. Accordingly, the shares of the Company may only be offered or advertised and this document may only be made available, in Switzerland to qualified investors within the meaning of CISA who are not high-net-worth individuals (or private investment structures established for high-net-worth individuals) having opted out to professional client status under Art. 5 para. 1 of the Swiss Federal Act on Financial Services. Investors in the shares of the Company do not benefit from the specific investor protection provided by CISA and the supervision by the FINMA in connection with the approval for offering. > 5Copyright © 2026 Fair Oaks Capital Ltd. All rights reserved. ## Footnotes All references to “Fund II” are to “FOIF II LP”, Master Fund II. All references to “Fund” are to “FOMC LP”, Master Fund. 1) Price and NAV returns includes reinvestment of dividends. Net of fund expenses and fees. 2) Pitchbook LCD as at 27-Feb-26. Default rate by principal value. Distress ratio by issuer count. 3) Pitchbook LCD as at 10-Mar-26. Leveraged Loan Index and European Leveraged Loan Index. 4) Pitchbook LCD, “Oil price surge, war jitters push European loans to lowest since June 2023”, 10-Mar-26. 5) Morgan Stanley, “Global Credit & CLO Strategy: Mapping Software Exposure in Leveraged Credit”, 09-Feb-26. 6) Barclays as at 27-Feb-26. Historical CLO Data. 7) Creditflux, “CLO ETFs see USD 1bn+ in outflows as retail investors react to software, Iran”, 06-Mar-26. 8) Fair Oaks Capital and Bloomberg as at 06-Mar-26. 9) Intex. Portfolio currency and rating breakdown based on latest NAV, original ratings and currency denominations of all CLO investments, excluding cash. Industry diversification and rating breakdown based on Moody’s sectors and ratings and loan par value weighted by Fund's ownership of Income Notes (excluding unsettled positions). 10) Intex. Based on loan par value weighted by Master Fund’s proportional ownership of Income Notes (excluding unsettled positions). 11) Intex. Based on CLO liability spreads weighted by Master Fund's proportional ownership of Income Notes (excluding unsettled positions). 12) Based on Moody’s company ratings. Due to rounding errors, the percentages may not sum to 100%. 13) Table excludes the sub-fee notes and any investments in CLO warehouses held in the portfolio. 14) Vehicles managed by the General Partner own a majority of the CLO equity in the transaction. 15) Includes the Company’s proportional ownership of investments held by Master Fund II and Master Fund. 16) Valuations are independently sourced by a third-party service provider, except for valuations for FOLF 1X SUB, FOLF 2X SUB, FOLF 3X SUB, FOLF 4X SUB, FOLF 5X SUB, FOLF 6X SUB and their respective Z and M (fee) notes which are provided by Wollemi Investments I LP. 17) Intex. Balance of defaulted assets as of latest trustee report. 18) Intex. Based on loan facility rating. 19) Intex. Based on current loan balance of the respective CLO. 20) Based on month-end prices from Markit but where prices are not available, we may use the latest price from the monthly trustee reports to calculate the weighted average. 21) Distributions received from fee notes are included in the calculation. 22) Intex. Based on latest available trustee report. Difference between latest available value and threshold for BB over-collateralization test for CLO subordinated notes and relevant over-collateralisation test for mezzanine investments. 23) Fair Oaks Capital acts as CLO manager for the deal. 24) Total includes cash at Fair Oaks Income Limited. The cash balance is pro-forma for the latest dividend announced. 25) Weighted averages are by market value except for current market valuation and coupon which are weighted by par value. Weighted average calculation uses the Bloomberg EUR/USD foreign exchange rate on 30-Jan-26 (1.185).