Skip to main content

FINS Files Presentation Showcasing New Investment Advisory Agreement

Underscores That the New Agreement Continues the Strategy, Management, and Competitive Fee Structure of the Existing Agreement

Highlights That the New Agreement Enables the Fund to Leverage Brookfield’s Global Scale and Resources and Deliver Enhanced Value for All Shareholders

Encourages Shareholders to Vote “FOR” All Ballot Items

ATLANTA — (September 3, 2025) — Angel Oak Financial Strategies Income Term Trust (NYSE: FINS) (the “Fund”) announces that it has filed an investor presentation with the U.S. Securities and Exchange Commission in connection with the Fund’s Special Meeting of Shareholders (the “Special Meeting”) to be held on September 26, 2025.

The Fund’s Board of Trustees (the “Board”) recommends that shareholders vote “FOR” the approval of the Fund’s new investment advisory agreement (the “New Agreement”), which is substantially identical to the current investment advisory agreement.

Key Points of the Presentation

The New Agreement will ensure continuity of the Fund’s operations, investment strategy, and management team.

  • There will be no material changes to the day-to-day management and operations of the Fund.
  • There will be no increase in fees.
  • There will be no changes to the portfolio managers of the Fund.
  • There will be no changes to shareholders’ daily experience in dealing with the Fund.

Shareholders are expected to benefit from the combination of Brookfield Asset Management Ltd.’s (“Brookfield”) scale and Angel Oak Capital Advisors, LLC’s (the “Adviser”) specialization in high-yield, investment-grade opportunities in the community banking sector.

  • While the Adviser will continue to operate independently under its existing leadership and investment processes, Brookfield’s scale and financial strength are expected to enhance the Adviser’s resources.
  • The New Agreement is expected to deliver benefits to all shareholders through the Adviser’s improved market access, balance sheet support, and potential synergies and collaboration between the Adviser and Brookfield.

Shareholder approval of the New Agreement is essential to the Fund’s efforts to help investors achieve their long-term financial goals.

  • As of August 31, 2025, the Fund has outperformed its benchmark – the Bloomberg U.S. Aggregate Bond Index – over the 1-, 3-, and 5-year periods, as well as year to date and since inception.1
  • An investment at the Fund’s initial net asset value (“NAV”) of $20 per share is now worth $24.07, including return of capital, compared to the benchmark’s value of $21.54.2
  • The Board has taken steps to improve the Fund’s trading discount to NAV, including increasing the distribution rate and growing the Fund to increase liquidity and trading volumes – as a result, the discount has narrowed to 3.9% as of August 31, 2025, which is one of the best in the Fund’s peer group.3
  • The Fund intends to maintain its level distribution policy at the new, higher distribution rate announced for August 2025.

The Board is committed to acting in the best interest of all shareholders.

  • A majority of the Board is independent from the Adviser, empowering the Board to provide objective oversight of management.
  • Current interested trustee Clayton Triick will resign from the Board before the Brookfield transaction closes, which will further strengthen the Board’s independence from the Adviser.
  • The Board unanimously approved the New Agreement, and prior to voting on the New Agreement, the independent trustees reviewed it with independent legal counsel.
  • The Board values investor feedback and is dedicated to continuing open engagement with all shareholders.

HOW TO VOTE

Shareholders of record as of August 20, 2025, are entitled to vote at the Special Meeting. The Board recommends that shareholders vote “FOR” Proposal 1, which is the proposal to approve the New Agreement, and vote “FOR” Proposal 2, which is the proposal to approve any adjournments of the Special Meeting, if necessary or appropriate, for the purpose of soliciting additional proxies. Shareholders should promptly vote their shares “FOR” both proposals by following the instructions provided in their proxy materials, whether by internet, telephone, or mail.

If you have any questions or need assistance voting your shares, please contact the Fund’s proxy solicitor, EQ Fund Solutions, LLC, at 800-581-3783.

ABOUT FINS

Led by Angel Oak’s experienced financial services team, the Fund invests predominantly in U.S. financial sector debt as well as selective opportunities across financial sector preferred and common equity. Under normal circumstances, the Fund will invest at least 50% of the Fund’s portfolio in debt investments rated investment grade by nationally recognized statistical rating organizations, or if unrated, judged by Angel Oak to be of investment grade quality.

ABOUT ANGEL OAK CAPITAL ADVISORS, LLC

Angel Oak is an investment management firm focused on providing compelling fixed-income investment solutions to its clients. Backed by a value-driven approach, Angel Oak seeks to deliver attractive, risk-adjusted returns through a combination of stable current income and price appreciation. Its experienced investment team seeks the best opportunities in fixed income, with a specialization in mortgage-backed securities and other areas of structured credit.

On April 1, 2025, Angel Oak Companies, LP, the parent of Angel Oak Asset Management Holdings, LLC, itself the parent of the Adviser, announced that it signed a definitive agreement pursuant to which Brookfield will acquire a majority interest in Angel Oak Companies, LP and its subsidiaries, including the Adviser (the “Transaction”). The closing of the Transaction is expected to be completed by September 30, 2025. The Transaction is not expected to result in any material change in the day-to-day management and operations of the Fund or any increase in fees. However, the closing of the Transaction is subject to certain conditions, and there can be no assurance that the Transaction will be completed as planned, or that the necessary conditions will be satisfied. If successful, the closing of the Transaction would be deemed to be a change of “control” of Angel Oak Companies, LP and its subsidiaries (collectively, the “Angel Oak Companies”) under the Investment Company Act of 1940, and deemed an “assignment” of the Fund’s investment advisory agreement (the “Existing Advisory Agreement”), which would result in the automatic termination of the Existing Advisory Agreement. However, following the closing of the Transaction, the existing management team of the Angel Oak Companies will continue to independently manage the day-to-day business of the Angel Oak Companies and the Adviser, and will control the boards of directors of the Angel Oak Companies.

Information regarding the Fund and Angel Oak Capital Advisors can be found at www.angeloakcapital.com.

1Source: Total return is based on market price and is from Bloomberg. Figures are cumulative.
2Source: Total return is based on NAV and is from Morningstar. Morningstar’s calculation divides the change in the Fund’s NAV, assuming the reinvestment of all income and capital gains distributions (on the actual reinvestment date used by the Fund) during the period, by the initial NAV. Data as of 8/31/2025.
3Source: Bloomberg and Fund filings. Data as of 8/31/2025.

Past performance is neither indicative nor a guarantee of future results. Investors should consider the Fund’s investment objective and policies, risk considerations, charges and ongoing expenses of an investment carefully before investing. For more information, please contact your investment representative or EQ Fund Solutions, LLC, the Fund’s proxy solicitor, at 800-581-3783.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements contained in this release constitute forward-looking statements. Forward-looking statements can be identified by the words “may,” “will,” “intend,” “expect,” “continue,” “plan,” and similar terms and the negative of such terms. These statements involve known and unknown risks, uncertainties and other factors that may cause the Fund’s actual results or level of performance to be materially different from any future results or level of performance expressed or implied by such forward-looking statements. Such risks, uncertainties and other factors that could materially affect the Fund’s actual results include, among others, the performance of the portfolio of securities the Fund holds, the price at which the Fund’s securities trade in the public markets and other factors discussed in the Fund’s periodic filings with the U.S. Securities and Exchange Commission. As a result of these and other factors, the Fund cannot give you any assurances as to its future results or level of performance, and neither the Fund nor any other person assumes responsibility for the accuracy and completeness of such statements. Although the expectations expressed in the forward-looking statements are believed to be reasonable, actual results could differ materially from those projected or assumed in the forward-looking statements. Except for ongoing obligations under the federal securities laws, the Fund does not intend, and undertakes no obligation, to publicly update or revise any forward-looking statements made in this release.

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.

 

High Yield Opportunities ETF Prospectus 

Income ETF Prospectus

Mortgage-Backed Securities ETF Prospectus

Multi-Strategy Income Fund Prospectus

Strategic Credit Fund Prospectus

UltraShort Income ETF Prospectus

UltraShort Income Fund Prospectus

 

Return to the Angel Oak Website to access standardized performance or recent portfolio holdings or positions (High Yield Opportunities ETF Performance, Income ETF Performance, Mortgage-Backed Securities ETF Performance, Multi-Strategy Income Fund Performance, Strategic Credit Fund Performance, UltraShort Income ETF Performance, UltraShort Income Fund Performance).

 

Important Social Media Disclosures

 

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.

 

Investing involves risk. Principal loss is possible. Some 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, 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. Derivatives may involve certain costs and risks such as illiquidity, interest rate, market, credit, management, and the risk that a position could not be closed when most advantageous. 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 non-rated securities present a greater risk of loss to principal and interest than higher-rated securities do. 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.

 

ETFs may trade at a premium or discount to NAV. Shares of any ETF are bought and sold at market prices (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. The Fund is an actively managed ETF, which is a fund that trades like other publicly traded securities. The Fund is not an index fund and does not seek to replicate the performance of a specified index.

 

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.

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.

The Angel Oak Funds are distributed by Quasar Distributors, LLC.

 

 

Continue

You are now leaving the Angel Oak Capital and Angel Oak Funds website.


Continue

By continuing on this site or clicking Yes to Accept, you agree to our use of cookies and other technologies to process your personal data to personalize your experience and for other purposes.