Adam Langley Chief Compliance Officer
404-637-0412 One Buckhead Plaza Suite 500 3060 Peachtree Road, NW Atlanta, GA 30305
Pursuant to Securities and Exchange Commission (“SEC”) Regulation S-P, investment advisers must adopt and implement policies and procedures designed to: 1) ensure the security and confidentiality of Client records and information; 2) protect against any anticipated threats or hazards to the security or integrity of Client records and information; and, 3) protect against unauthorized access to or use of Client records or information that could result in substantial harm or inconvenience to any Client. Furthermore, investment advisers must provide their Clients with an initial privacy notice at the time a Client relationship is established and an annual privacy notice thereafter. As private fund(s) or other pooled investment vehicle(s) are not natural persons, investment advisers are not required to provide privacy notices to each private fund or other pooled investment vehicle Client; however, Federal Trade Commission (“FTC”) rules require that the private fund(s) or other pooled investment vehicle(s) provide their investors, who are natural persons, with initial and annual privacy notices.
Angel Oak collects nonpublic personal information about our clients to serve your investment needs, provide customer service, offer new products and services and comply with legal and regulatory requirements. In particular, Angel Oak collects information to help determine which products and services Clients are eligible for and which products and services are suited to its Clients. The type of nonpublic personal information Angel Oak collects from clients may include the following:
information regarding existing securities accounts
educational and employment history,
prior investment experience with different types of investment vehicles, and any relationships a client may have with others involved in the securities business,
social security number, and
financial status (assets and income).
Angel Oak collects this information about you from the following sources:
the documents you deliver to us, such as application forms (including subscription documents),
transactions with Angel Oak and our affiliates in which you participate, and
correspondence and other communications (including telephone, mail and e-mail) with you.
IV. Opt Out Right
V. Confidentiality and Security
Except as described below, access to nonpublic information about clients, former clients and prospective clients is restricted to Angel Oak employees who need to know that information in order to provide products or services to Clients. Those employees with access to nonpublic personal information are required to protect the confidentiality of that information. Angel Oak maintains physical and procedural safeguards to protect your nonpublic personal information.
VI. Physical Safeguard Procedures
When in use, Client information should not be left unattended under any circumstances.
Angel Oak’s offices are located in secured buildings and are locked at all times to prevent unauthorized entry onto the premises.
Physical access to Angel Oak’s offices is limited to authorized personnel only and any visitors should remain escorted at all times.
Any hard copy documents containing Client information that are not to be retained are to be shredded promptly.
VII. Electronic Safeguard Procedures
All PCs with access to Client information should be password protected and have active and current anti-virus, anti-spyware, and firewall protection.
When not in use, all PCs should be locked in screen saver mode.
VIII. Uses of Information
For Clients that are investors in Angel Oak’s privately offered pooled investment vehicles, Angel Oak Debt Recovery Fund I, LP, Angel Oak Partners Fund I, LLC, Angel Oak Strategic Mortgage Income Fund, LP, , Angel Oak Structured Credit Opportunity Fund- Series B, Angel Oak Structured Income Fund I, LP, Mortgage Opportunities Fund I, and Angel Oak Multi-Strategy Income Fund, Client information may be used internally to process subscriptions and provide Client service. For managed account clients, if any, Client information may be used internally to provide advisory services to Clients, to open an advisory account and one or more securities brokerage accounts, to process transactions for Client accounts, for account maintenance and otherwise to provide investment advisory services.
Angel Oak may also provide nonpublic personal information (including each type of nonpublic information that we collect listed above) about its Clients and former Clients to:
unaffiliated financial service providers, such as a broker-dealers, custodians or other firms that have a need for such information in order to service or process a financial product or service requested or authorized by you or who will maintain or service your account on Angel Oak’s behalf,
broker-dealers and other financial institutions in connection with determinations of eligibility to participate in initial public offerings,
broker-dealers, issuers and their counsel in connection with determinations of eligibility and participation in private securities placements,
our attorneys, accountants and auditors retained by Angel Oak, to the extent required by them to perform services for Angel Oak and its Clients,
as permitted or required by federal state or local law, such as in response to a subpoena, to prevent fraud or to comply with an inquiry or other requirement of a governmental agency or regulator, and
to an affiliate of ours whose privacy and confidentiality policy is at least co-extensive with Angel Oak.
Many jurisdictions are in the process of changing or creating anti-money laundering, embargo and trade sanction, or similar laws, regulations, requirements or regulatory policies (whether or not with force of law) and many financial intermediaries are in the process of changing or creating responsive disclosure and compliance policies. Angel Oak may provide nonpublic personal information that we collect from Clients, former Clients and prospective Clients in respect of AML Policies or information requests related thereto to relevant third parties.
Angel Oak does not otherwise provide nonpublic personal information about Clients, former Clients or prospective Clients to anyone without the consent of the Client.
This policy applies to Angel Oak, its owners, and to each private investment vehicle and managed account, if any, sponsored by Angel Oak or for which Angel Oak, its owners, or any of their affiliates serves as general partner or in a similar capacity.
You are now leaving the Angel Oak Capital and Angel Oak Funds website. Any views expressed on the site you are about to visit, or any articles or interviews therein are those of the participants and are not intended as a forecast or as investment recommendations. Information provided with respect to the Fund’s Portfolio Holdings, Sector Weightings, Number of Holdings, Performance and Expense Ratios are as of the dates described in the article and are subject to change at any time.
Performance data current to the most recent month-end and quarter-end can be obtained by clicking the links above.
Past performance is no guarantee of future results. The investment return and principal value of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than what is stated.
Mutual fund investing involves risk. Principal loss is possible. The Funds can make short sales of securities, which involves the risk that losses in securities may exceed the original amount invested. Leverage, which may exaggerate the effect of any increase or decrease in the value of securities in a Fund’s portfolio on the Fund’s Net Asset Value and therefore may increase the volatility of a Fund. Investments in foreign securities involve greater volatility and political, economic and currency risks and differences in accounting methods. These risks are increased for emerging markets. Investments in fixed income instruments typically decrease in value when interest rates rise. Derivatives involve risks different from and, in certain cases, greater than the risks presented by more traditional investments. Investments in asset backed and mortgage‐backed securities include additional risks that investors should be aware of, such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. Investments in lower‐rated and nonrated securities presents a greater risk of loss to principal and interest than higher‐rated securities. A non‐diversified fund, may be more susceptible to being adversely affected by a single corporate, economic, political or regulatory occurrence than a diversified fund. Funds will incur higher and duplicative costs when it invests in mutual funds, ETFs and other investment companies. There is also the risk that the Funds may suffer losses due to the investment practices of the underlying funds. For more information on these risks and other risks of the Funds, please see the Prospectus.
There is no guarantee that this or any investment strategy will succeed; the strategy is not an indicator of future performance; and investment results may vary.
Definitions: Correlation: A statistical measure of how two securities move in relation to another. Index used for comparison is the Barclays U.S. Aggregate Bond Index. Duration: A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates.
References to other mutual funds should not be interpreted as an offer of these securities.
Fund holdings and allocations are subject to change at any time and should not be considered a recommendation to buy or sell any security.
Diversification does not guarantee a profit or protect from loss in a declining market.
Indexed annuities are complex, not suitable for all investors, and due to surrender charges it is possible to lose money.
Upside potential may be limited due to participation rates.
**As of 6/30/17, the Angel Oak Multi-Strategy Income Fund (ANGLX) received a Morningstar rating based on risk-adjusted returns of 5 stars overall, 4 stars for the three-year period & 5 stars for the five-year period among 233, 233, and 190 multisector bond funds, respectively. The Morningstar Rating™ for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history, without adjustment for sales loads. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating™ for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating™ metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.
**As of 6/30/17, the Angel Oak High Yield Opportunities Fund (ANHIX) received a Morningstar rating based on risk-adjusted returns of 4 stars overall, 5 stars for the three-year period and 4 stars for the five-year period among 590, 590, and 474 high yield bond funds. The Morningstar Rating™ for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history, without adjustment for sales loads. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating™ for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating™ metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods.