Multi-Strategy Income Fund
Overview
Focus on Non-Agency Residential Mortgage-Backed Securities
The Fund seeks the best risk-adjusted opportunities in fixed income that offer the potential for both stable, monthly dividends and price appreciation. The Fund employs a top-down strategy to identify relative valuation opportunities within the structured credit markets and a bottom-up credit selection process to selecting individual issues. The managers will invest opportunistically across a wide range of credits and issuer types based on relative value within fixed income. Specifically, the Fund targets opportunities in:
- Non-Agency Residential Mortgage-Backed Securities (NA RMBS)
- Commercial Mortgage-Backed Securities (CMBS)
- Collateralized Loan Obligations (CLOs)
- Asset-Backed Securities (ABS)
- Agency Residential Mortgage-Backed Securities (RMBS)
Currently, the Fund has a bias towards credit and low duration assets to manage interest rate risk. This bias is not set for the long-term and may change over time as the managers’ view on the global economy, interest rates and capital market conditions change. The team does not manage the portfolio’s asset allocation to resemble the Fund’s benchmark in a relative sense, but instead positions the portfolio with a focus on absolute return.
Performance
| Total Returns (as of 12/18/18) | NAV | NAV Change Dollars | NAV Daily Change (%) | YTD (%) | |
|---|---|---|---|---|---|
| Class I | NAV | $11.04 | $0.00 | 0.00% | 2.85% |
| Class A | NAV | $11.06 | $0.00 | 0.00% | 2.62% |
| MOP | $11.31 | $0.00 | 0.00% | 0.30% | |
| Class C | NAV | $10.96 | ($0.01) | -0.09% | 1.78% |
| MOP | $10.96 | ($0.01) | -0.09% | 0.80% | |
| Bloomberg Barclays Aggregate Bond Index | n/a | n/a | 0.25% | -0.48% | |
| Total Returns (as of 11/30/18) | Prior Mo. | YTD | 1 Year | 3 Years | 5 Years | Since Inception1 | |
|---|---|---|---|---|---|---|---|
| Class I | NAV | 0.06% | 3.05% | 3.09% | 4.24% | 4.21% | 7.18% |
| Class A | NAV | 0.13% | 2.83% | 2.85% | 3.96% | 3.95% | 6.95% |
| MOP | -2.15% | 0.51% | 0.54% | 3.17% | 3.47% | 6.63% | |
| Class C | NAV | 0.07% | 2.13% | 2.17% | 3.22% | 3.18% | 6.16% |
| MOP | -0.93% | 1.14% | 1.19% | 3.22% | 3.18% | 6.16% | |
| Bloomberg Barclays Aggregate Bond Index | 0.60% | -1.79% | -1.34% | 1.33% | 2.03% | 2.37% | |
| Total Returns (as of 09/30/18) | Prior Qtr. | YTD | 1 Year | 3 Years | 5 Years | Since Inception1 | |
|---|---|---|---|---|---|---|---|
| Class I | NAV | 0.89% | 2.74% | 3.60% | 4.16% | 4.58% | 7.30% |
| Class A | NAV | 0.83% | 2.56% | 3.26% | 3.88% | 4.32% | 7.08% |
| MOP | -1.46% | 0.25% | 0.94% | 3.10% | 3.86% | 6.75% | |
| Class C | NAV | 0.65% | 1.98% | 2.59% | 3.13% | 3.55% | 6.29% |
| MOP | -0.35% | 0.99% | 1.61% | 3.13% | 3.55% | 6.29% | |
| Bloomberg Barclays Aggregate Bond Index | 0.02% | -1.60% | -1.22% | 1.31% | 2.16% | 2.45% | |
Expense Ratios*
| Class A | Class I | Class C | |
|---|---|---|---|
| Gross | 1.37% | 1.12% | 2.12% |
| Net | 1.24% | 0.99% | 1.99% |
Performance data quoted represents past performance. 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.
1 The inception date of the Angel Oak Multi-Strategy Income Fund A Class (ANGLX) was 6/28/11, while the inception date of the Institutional Class (ANGIX) was 8/16/12, and inception date of the C Class (ANGCX) was 8/4/15. The returns of ANGIX and ANGCX shown for periods prior to the inception date include the returns of ANGLX and are adjusted to reflect the operating expenses of ANGIX and ANGCX. 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. Bloomberg Barclays U.S. Aggregate Bond Index: Calculated from inception date of Class A.
NAV represents annualized returns without a sales charge. MOP represents annualized returns with the maximum sales charge. Class A has a maximum sales charge of 2.25%. Maximum Contingent Deferred Sales Charge (load) as a % of amount redeemed: Class A & I: None. Class C shares are subject to a CDSC of 1.00% if you redeem your shares within twelve (12) months of purchase, based on the lower of the shares’ cost or current net asset value.
*Gross expense ratios are reported as of the 5/31/18 prospectus. The net expense ratios are reported as of the 1/31/18 Annual Report and are referenced in the 5/31/18 prospectus. The Adviser has contractually agreed to waive fees through 5/31/19.
Growth of $10,000 Since Inception as of 9/30/18
This chart illustrates the performance of a hypothetical $10,000 investment made in Angel Oak Multi-Strategy Income Fund (ANGIX), A Shares since inception on 6/28/11. It assumes reinvestment of capital gains and dividends. This chart is not intended to imply any future performance.
Bloomberg Barclays U.S. Aggregate Bond Index: An unmanaged index that measures the performance of the investment-grade universe of bonds issued in the United States. The index includes institutionally traded U.S. Treasury, government sponsored, mortgage and corporate securities. Please note that an investor cannot invest directly in the index; therefore its performance does not reflect a reduction for fees or expenses incurred in managing a portfolio.
| Record Date | Payable Date | Reinvestment Price ($/share) | Ordinary Income ($/share) | ST Cap Gains ($/share) | LT Cap Gains ($/share) |
|---|---|---|---|---|---|
| 1/30/2018 | 1/31/2018 | 11.26 | 0.03969 | – | – |
| 2/27/2018 | 2/28/2018 | 11.19 | 0.03789 | – | – |
| 3/28/2018 | 3/29/2018 | 11.24 | 0.04220 | – | – |
| 4/29/2018 | 4/30/2018 | 11.23 | 0.04346 | – | – |
| 5/30/2018 | 5/31/2018 | 11.25 | 0.04401 | – | – |
| 6/28/2018 | 6/29/2018 | 11.21 | 0.04437 | – | – |
| 7/30/2018 | 7/31/2018 | 11.18 | 0.04582 | – | – |
| 8/30/2018 | 8/31/2018 | 11.18 | 0.04520 | – | – |
| 9/27/2018 | 9/28/2018 | 11.17 | 0.04165 | – | – |
| 10/30/2018 | 10/31/2018 | 11.14 | 0.04519 | – | – |
| 11/29/2018 | 11/30/2018 | 11.11 | 0.04440 | – | – |
| Total 2018 | 0.47388 |
| Record Date | Payable Date | Reinvestment Price ($/share) | Ordinary Income ($/share) | ST Cap Gains ($/share) | LT Cap Gains ($/share) |
|---|---|---|---|---|---|
| 1/30/2017 | 1/31/2017 | 11.30 | 0.04062 | – | – |
| 2/27/2017 | 2/28/2017 | 11.29 | 0.04686 | – | – |
| 3/30/2017 | 3/31/2017 | 11.28 | 0.05460 | – | – |
| 4/27/2017 | 4/28/2017 | 11.28 | 0.05087 | – | – |
| 5/30/2017 | 5/31/2017 | 11.31 | 0.05037 | – | – |
| 6/29/2017 | 6/30/2017 | 11.31 | 0.04762 | – | – |
| 7/30/2017 | 7/31/2017 | 11.32 | 0.04951 | – | – |
| 8/30/2017 | 8/31/2017 | 11.32 | 0.04807 | – | – |
| 9/28/2017 | 9/29/2017 | 11.32 | 0.04417 | – | – |
| 10/30/2017 | 10/31/2017 | 11.34 | 0.04587 | – | – |
| 11/29/2017 | 11/30/2017 | 11.31 | 0.03963 | – | – |
| 12/29/2017 | 12/29/2017 | 11.27 | 0.04196 | – | – |
| Total 2017 | 0.56015 |
| Record Date | Payable Date | Reinvestment Price ($/share) | Ordinary Income ($/share) | ST Cap Gains ($/share) | LT Cap Gains ($/share) |
|---|---|---|---|---|---|
| 1/29/2016 | 1/30/2016 | 11.28 | 0.05422 | – | – |
| 2/26/2016 | 2/29/2016 | 10.92 | 0.05736 | – | – |
| 3/30/2016 | 3/31/2016 | 11.04 | 0.05938 | – | – |
| 4/28/2016 | 4/29/2016 | 11.09 | 0.06169 | – | – |
| 5/27/2016 | 5/31/2016 | 11.05 | 0.06279 | – | – |
| 6/29/2016 | 6/30/2016 | 11.02 | 0.05701 | – | – |
| 7/28/2016 | 7/29/2016 | 11.18 | 0.05797 | – | – |
| 8/30/2016 | 8/31/2016 | 11.17 | 0.05800 | – | – |
| 9/29/2016 | 9/30/2016 | 11.22 | 0.04994 | – | – |
| 10/30/2016 | 10/31/2016 | 11.24 | 0.06032 | – | – |
| 11/29/2016 | 11/30/2016 | 11.21 | 0.06855 | – | – |
| 12/27/2016* | 12/28/2016* | 11.21 | 0.00799 | – | – |
| 12/29/2016 | 12/30/2016 | 11.23 | 0.05672 | – | – |
| Total 2016 | 0.71194 |
*Due to our annual tax review, there was additional earned income that was required to be paid out prior to the calendar year end.
| Record Date | Payable Date | Reinvestment Price ($/share) | Ordinary Income ($/share) | ST Cap Gains ($/share) | LT Cap Gains ($/share) |
|---|---|---|---|---|---|
| 1/29/2015 | 1/30/2015 | 12.08 | 0.05513 | – | – |
| 2/26/2015 | 2/27/2015 | 12.15 | 0.04561 | – | – |
| 3/30/2015 | 3/31/2015 | 12.13 | 0.05361 | – | – |
| 4/29/2015 | 4/30/2015 | 12.15 | 0.04939 | – | – |
| 5/28/2015 | 5/29/2015 | 12.18 | 0.05503 | – | – |
| 6/29/2015 | 6/30/2015 | 12.09 | 0.05388 | – | – |
| 7/30/2015 | 7/31/2015 | 12.06 | 0.06699 | – | – |
| 8/28/2015 | 8/31/2015 | 11.96 | 0.05989 | – | – |
| 9/29/2015 | 9/30/2015 | 11.82 | 0.06242 | – | – |
| 10/29/2015 | 10/30/2015 | 11.75 | 0.06502 | – | – |
| 11/27/2015 | 11/30/2015 | 11.70 | 0.05995 | – | – |
| 12/29/2015* | 12/30/2015* | 11.50 | 0.14782 | – | – |
| Total 2015 | 0.77474 |
*Due to our annual tax review, there was additional earned income that was required to be paid out prior to the calendar year end.
| Record Date | Payable Date | Reinvestment Price ($/share) | Ordinary Income ($/share) | ST Cap Gains ($/share) | LT Cap Gains ($/share) |
|---|---|---|---|---|---|
| 1/30/2014 | 1/31/2014 | 12.17 | 0.04757 | – | – |
| 2/27/2014 | 2/28/2014 | 12.16 | 0.04407 | – | – |
| 3/28/2014 | 3/31/2014 | 12.15 | 0.04928 | – | – |
| 4/29/2014 | 4/30/2014 | 12.17 | 0.04867 | – | – |
| 5/29/2014 | 5/30/2014 | 12.18 | 0.05226 | – | – |
| 6/27/2014 | 6/30/2014 | 12.21 | 0.05111 | – | – |
| 7/30/2014 | 7/31/2014 | 12.26 | 0.04965 | – | – |
| 8/28/2014 | 8/29/2014 | 12.20 | 0.05215 | – | – |
| 9/29/2014 | 9/30/2014 | 12.17 | 0.04897 | – | – |
| 10/30/2014 | 10/31/2014 | 12.09 | 0.05226 | – | – |
| 11/26/2014 | 11/28/2014 | 12.09 | 0.05664 | – | – |
| 12/29/2014 | 12/30/2014 | 12.07 | 0.05583 | – | – |
| Total 2014 | 0.60846 |
| Record Date | Payable Date | Reinvestment Price ($/share) | Ordinary Income ($/share) | ST Cap Gains ($/share) | LT Cap Gains ($/share) |
|---|---|---|---|---|---|
| 2/4/2013 | 2/5/2013 | 12.32 | 0.03780 | – | – |
| 3/4/2013 | 3/5/2013 | 12.31 | 0.05180 | – | – |
| 4/4/2013 | 4/5/2013 | 12.34 | 0.03700 | – | – |
| 5/3/2013 | 5/6/2013 | 12.47 | 0.04510 | – | – |
| 6/4/2013 | 6/5/2013 | 12.43 | 0.04210 | – | – |
| 7/3/2013 | 7/5/2013 | 11.90 | 0.05100 | – | – |
| 8/2/2013 | 8/5/2013 | 11.81 | 0.05150 | – | – |
| 9/4/2013 | 9/5/2013 | 11.79 | 0.05170 | – | – |
| 10/4/2013 | 10/7/2013 | 11.89 | 0.04680 | – | – |
| 11/4/2013 | 11/5/2013 | 12.02 | 0.04090 | – | – |
| 12/4/2013 | 12/5/2013 | 12.05 | 0.04138 | 0.01233 | 0.00088 |
| 12/30/2013 | 12/31/2013 | 12.02 | 0.03994 | – | – |
| Total 2013 | 0.53702 | 0.01233 | 0.00088 |
| Record Date | Payable Date | Reinvestment Price ($/share) | Ordinary Income ($/share) | ST Cap Gains ($/share) | LT Cap Gains ($/share) |
|---|---|---|---|---|---|
| 1/31/2012 | 2/1/2012 | 12.32 | 0.05520 | – | – |
| 2/29/2012 | 3/1/2012 | 12.31 | 0.06400 | – | – |
| 3/30/2012 | 4/2/2012 | 12.34 | 0.06740 | – | – |
| 4/30/2012 | 5/1/2012 | 12.47 | 0.04670 | – | – |
| 6/4/2012 | 6/5/2012 | 12.43 | 0.05500 | – | – |
| 7/3/2012 | 7/5/2012 | 11.90 | 0.05890 | – | – |
| 8/3/2012 | 8/6/2012 | 11.81 | 0.05280 | – | – |
| 9/4/2012 | 9/5/2012 | 11.79 | 0.03900 | – | – |
| 10/4/2012 | 10/5/2012 | 11.89 | 0.03470 | – | – |
| 11/2/2012 | 11/5/2012 | 12.02 | 0.03750 | – | – |
| 12/4/2012 | 12/5/2012 | 12.05 | 0.04800 | – | – |
| 12/4/2012 | 12/5/2012 | 12.06 | – | 0.04730 | 0.00220 |
| 12/28/2012 | 12/31/2012 | 12.05 | 0.04810 | – | – |
| Total 2012 | 0.60730 | 0.04730 | 0.00220 |
| Record Date | Payable Date | Reinvestment Price ($/share) | Ordinary Income ($/share) | ST Cap Gains ($/share) | LT Cap Gains ($/share) |
|---|---|---|---|---|---|
| 8/31/2011 | 9/1/2011 | 10.62 | 0.01000 | – | – |
| 9/30/2011 | 10/3/2011 | 10.58 | 0.04700 | – | – |
| 10/31/2011 | 11/1/2011 | 10.50 | 0.05750 | – | – |
| 11/30/2011 | 12/1/2011 | 10.34 | 0.04820 | – | – |
| 12/29/2011 | 12/30/2011 | 10.45 | 0.05660 | – | – |
| Total 2011 | 0.21930 |
| Record Date | Payable Date | Reinvestment Price ($/share) | Ordinary Income ($/share) | ST Cap Gains ($/share) | LT Cap Gains ($/share) |
|---|---|---|---|---|---|
| 1/30/2018 | 1/31/2018 | 11.23 | 0.04209 | – | – |
| 2/27/2018 | 2/28/2018 | 11.17 | 0.04028 | – | – |
| 3/28/2018 | 3/29/2018 | 11.22 | 0.04428 | – | – |
| 4/29/2018 | 4/30/2018 | 11.21 | 0.04377 | – | – |
| 5/30/2018 | 5/31/2018 | 11.23 | 0.04633 | – | – |
| 6/28/2018 | 6/29/2018 | 11.19 | 0.04676 | – | – |
| 7/30/2018 | 7/31/2018 | 11.17 | 0.04811 | – | – |
| 8/30/2018 | 8/31/2018 | 11.16 | 0.04756 | – | – |
| 9/27/2018 | 9/28/2018 | 11.15 | 0.04401 | – | – |
| 10/30/2018 | 10/31/2018 | 11.13 | 0.04748 | – | – |
| 11/29/2018 | 11/30/2018 | 11.09 | 0.04678 | – | – |
| Total 2018 | 0.49745 |
| Record Date | Payable Date | Reinvestment Price ($/share) | Ordinary Income ($/share) | ST Cap Gains ($/share) | LT Cap Gains ($/share) |
|---|---|---|---|---|---|
| 1/30/2017 | 1/31/2017 | 11.28 | 0.04412 | – | – |
| 2/27/2017 | 2/28/2017 | 11.27 | 0.04989 | – | – |
| 3/30/2017 | 3/31/2017 | 11.26 | 0.05741 | – | – |
| 4/27/2017 | 4/28/2017 | 11.26 | 0.05372 | – | – |
| 5/30/2017 | 5/31/2017 | 11.29 | 0.05268 | – | – |
| 6/29/2017 | 6/30/2017 | 11.29 | 0.05011 | – | – |
| 7/30/2017 | 7/31/2017 | 11.29 | 0.05183 | – | – |
| 8/30/2017 | 8/31/2017 | 11.30 | 0.05045 | – | – |
| 9/28/2017 | 9/29/2017 | 11.29 | 0.04657 | – | – |
| 10/30/2017 | 10/31/2017 | 11.32 | 0.04805 | – | – |
| 11/29/2017 | 11/30/2017 | 11.29 | 0.04203 | – | – |
| 12/29/2017 | 12/29/2017 | 11.25 | 0.04427 | – | – |
| Total 2017 | 0.59113 |
| Record Date | Payable Date | Reinvestment Price ($/share) | Ordinary Income ($/share) | ST Cap Gains ($/share) | LT Cap Gains ($/share) |
|---|---|---|---|---|---|
| 1/29/2016 | 1/30/2016 | 11.27 | 0.05645 | – | – |
| 2/26/2016 | 2/29/2016 | 10.91 | 0.05937 | – | – |
| 3/30/2016 | 3/31/2016 | 11.03 | 0.06186 | – | – |
| 4/28/2016 | 4/29/2016 | 11.08 | 0.06415 | – | – |
| 5/27/2016 | 5/31/2016 | 11.04 | 0.06500 | – | – |
| 6/29/2016 | 6/30/2016 | 11.02 | 0.05923 | – | – |
| 7/28/2016 | 7/29/2016 | 11.17 | 0.06063 | – | – |
| 8/30/2016 | 8/31/2016 | 11.17 | 0.06079 | – | – |
| 9/29/2016 | 9/30/2016 | 11.20 | 0.06047 | – | – |
| 10/30/2016 | 10/31/2016 | 11.23 | 0.06478 | – | – |
| 11/29/2016 | 11/30/2016 | 11.19 | 0.07145 | – | – |
| 12/27/2016* | 12/28/2016* | 11.19 | 0.00860 | – | – |
| 12/29/2016 | 12/30/2016 | 11.21 | 0.06016 | – | – |
| Total 2016 | 0.75294 |
*Due to our annual tax review, there was additional earned income that was required to be paid out prior to the calendar year end.
| Record Date | Payable Date | Reinvestment Price ($/share) | Ordinary Income ($/share) | ST Cap Gains ($/share) | LT Cap Gains ($/share) |
|---|---|---|---|---|---|
| 1/29/2015 | 1/30/2015 | 12.07 | 0.05775 | – | – |
| 2/26/2015 | 2/27/2015 | 12.14 | 0.04759 | – | – |
| 3/30/2015 | 3/31/2015 | 12.12 | 0.05600 | ||
| 4/29/2015 | 4/30/2015 | 12.14 | 0.05210 | – | – |
| 5/28/2015 | 5/29/2015 | 12.17 | 0.05751 | – | – |
| 6/29/2015 | 6/30/2015 | 12.08 | 0.05650 | – | – |
| 7/30/2015 | 7/31/2015 | 12.05 | 0.06950 | – | – |
| 8/28/2015 | 8/31/2015 | 11.95 | 0.06222 | – | – |
| 9/29/2015 | 9/30/2015 | 11.81 | 0.06505 | – | – |
| 10/29/2015 | 10/30/2015 | 11.74 | 0.06750 | ||
| 11/27/2015 | 11/30/2015 | 11.69 | 0.06231 | – | – |
| 12/29/2015* | 12/30/2015* | 11.49 | 0.15035 | – | – |
| Total 2015 | 0.80438 |
*Due to our annual tax review, there was additional earned income that was required to be paid out prior to the calendar year end.
| Record Date | Payable Date | Reinvestment Price ($/share) | Ordinary Income ($/share) | ST Cap Gains ($/share) | LT Cap Gains ($/share) |
|---|---|---|---|---|---|
| 1/30/2014 | 1/31/2014 | 12.17 | 0.05022 | – | – |
| 2/27/2014 | 2/28/2014 | 12.16 | 0.04613 | – | – |
| 3/28/2014 | 3/31/2014 | 12.14 | 0.05155 | – | – |
| 4/29/2014 | 4/30/2014 | 12.16 | 0.05109 | – | – |
| 5/29/2014 | 5/30/2014 | 12.18 | 0.05500 | – | – |
| 6/27/2014 | 6/30/2014 | 12.20 | 0.05350 | – | – |
| 7/30/2014 | 7/31/2014 | 12.25 | 0.05338 | – | – |
| 8/28/2014 | 8/29/2014 | 12.19 | 0.05566 | – | – |
| 9/29/2014 | 9/30/2014 | 12.16 | 0.05154 | – | – |
| 10/30/2014 | 10/31/2014 | 12.08 | 0.05500 | – | – |
| 11/26/2014 | 11/28/2014 | 12.08 | 0.05900 | – | – |
| 12/29/2014 | 12/30/2014 | 12.06 | 0.05817 | – | – |
| Total 2014 | 0.64023 |
| Record Date | Payable Date | Reinvestment Price ($/share) | Ordinary Income ($/share) | ST Cap Gains ($/share) | LT Cap Gains ($/share) |
|---|---|---|---|---|---|
| 2/4/2013 | 2/5/2013 | 12.31 | 0.04010 | – | – |
| 3/4/2013 | 3/5/2013 | 12.30 | 0.05400 | – | – |
| 4/4/2013 | 4/5/2013 | 12.33 | 0.03950 | – | – |
| 5/3/2013 | 5/6/2013 | 12.47 | 0.04760 | – | – |
| 6/4/2013 | 6/5/2013 | 12.42 | 0.04460 | – | – |
| 7/3/2013 | 7/5/2013 | 11.89 | 0.05390 | – | – |
| 8/2/2013 | 8/5/2013 | 11.80 | 0.05410 | – | – |
| 9/4/2013 | 9/5/2013 | 11.79 | 0.05420 | – | – |
| 10/4/2013 | 10/7/2013 | 11.88 | 0.04920 | – | – |
| 11/4/2013 | 11/5/2013 | 12.01 | 0.04330 | – | – |
| 12/4/2013 | 12/5/2013 | 12.05 | 0.04385 | – | – |
| 12/4/2013 | 12/5/2013 | 12.05 | – | 0.01233 | 0.00088 |
| 12/30/2013 | 12/31/2013 | 12.01 | 0.04205 | – | – |
| Total 2013 | 0.56639 | 0.01233 | 0.00088 |
| Record Date | Payable Date | Reinvestment Price ($/share) | Ordinary Income ($/share) | ST Cap Gains ($/share) | LT Cap Gains ($/share) |
|---|---|---|---|---|---|
| 9/4/2012 | 9/5/2012 | 11.73 | 0.04100 | – | – |
| 10/4/2012 | 10/5/2012 | 12.02 | 0.03710 | – | – |
| 11/2/2012 | 11/5/2012 | 12.04 | 0.03980 | – | – |
| 12/4/2012 | 12/5/2012 | 12.06 | 0.05020 | – | – |
| 12/4/2012 | 12/5/2012 | 12.06 | – | 0.04730 | 0.00220 |
| 12/28/2012 | 12/31/2012 | 12.10 | 0.05040 | – | – |
| Total 2012 | 0.21850 | 0.04730 | 0.00220 |
| Record Date | Payable Date | Reinvestment Price ($/share) | Ordinary Income ($/share) | ST Cap Gains ($/share) | LT Cap Gains ($/share) |
|---|---|---|---|---|---|
| 1/30/2018 | 1/31/2018 | 11.17 | 0.03266 | – | – |
| 2/27/2018 | 2/28/2018 | 11.11 | 0.03083 | – | – |
| 3/28/2018 | 3/29/2018 | 11.15 | 0.03612 | – | – |
| 4/29/2018 | 4/30/2018 | 11.14 | 0.04253 | – | – |
| 5/30/2018 | 5/31/2018 | 11.16 | 0.03726 | – | – |
| 6/28/2018 | 6/29/2018 | 11.12 | 0.03735 | – | – |
| 7/30/2018 | 7/31/2018 | 11.09 | 0.03903 | – | – |
| 8/30/2018 | 8/31/2018 | 11.09 | 0.03814 | – | – |
| 9/27/2018 | 9/28/2018 | 11.08 | 0.03461 | – | – |
| 10/30/2018 | 10/31/2018 | 11.06 | 0.03838 | – | – |
| 11/29/2018 | 11/30/2018 | 11.02 | 0.03742 | – | – |
| Total 2018 | 0.40433 |
| Record Date | Payable Date | Reinvestment Price ($/share) | Ordinary Income ($/share) | ST Cap Gains ($/share) | LT Cap Gains ($/share) |
|---|---|---|---|---|---|
| 1/30/2017 | 1/31/2017 | 11.22 | 0.04062 | – | – |
| 2/27/2017 | 2/28/2017 | 11.21 | 0.04686 | – | – |
| 3/30/2017 | 3/31/2017 | 11.20 | 0.05460 | – | – |
| 4/27/2017 | 4/28/2017 | 11.20 | 0.04393 | – | – |
| 5/30/2017 | 5/31/2017 | 11.18 | 0.04365 | – | – |
| 6/29/2017 | 6/30/2017 | 11.22 | 0.03961 | – | – |
| 7/30/2017 | 7/31/2017 | 11.23 | 0.04279 | – | – |
| 8/30/2017 | 8/31/2017 | 11.24 | 0.04106 | – | – |
| 9/28/2017 | 9/29/2017 | 11.23 | 0.03718 | – | – |
| 10/30/2017 | 10/31/2017 | 11.26 | 0.03962 | – | – |
| 11/29/2017 | 11/30/2017 | 11.23 | 0.03275 | – | – |
| 12/29/2017 | 12/29/2017 | 11.19 | 0.03511 | – | – |
| Total 2017 | 0.49778 |
| Record Date | Payable Date | Reinvestment Price ($/share) | Ordinary Income ($/share) | ST Cap Gains ($/share) | LT Cap Gains ($/share) |
|---|---|---|---|---|---|
| 1/29/2016 | 1/30/2016 | 11.26 | 0.04811 | – | – |
| 2/26/2016 | 2/29/2016 | 10.90 | 0.05189 | – | – |
| 3/30/2016 | 3/31/2016 | 11.02 | 0.05238 | – | – |
| 4/28/2016 | 2/29/2016 | 11.07 | 0.05502 | – | – |
| 5/27/2016 | 5/31/2016 | 11.03 | 0.05668 | – | – |
| 6/29/2016 | 6/30/2016 | 11.01 | 0.05091 | – | – |
| 7/28/2016 | 7/29/2016 | 11.15 | 0.05797 | – | – |
| 8/30/2016 | 8/31/2016 | 11.14 | 0.05800 | – | – |
| 9/29/2016 | 9/30/2016 | 11.18 | 0.04994 | – | – |
| 10/30/2016 | 10/31/2016 | 11.20 | 0.06032 | – | – |
| 11/29/2016 | 11/30/2016 | 11.15 | 0.06855 | – | – |
| 12/27/2016* | 12/28/2016* | 11.15 | 0.00618 | – | – |
| 12/29/2016 | 12/30/2016 | 11.17 | 0.05672 | – | – |
| Total 2016 | 0.67267 |
*Due to our annual tax review, there was additional earned income that was required to be paid out prior to the calendar year end.
| Record Date | Payable Date | Reinvestment Price ($/share) | Ordinary Income ($/share) | ST Cap Gains ($/share) | LT Cap Gains ($/share) |
|---|---|---|---|---|---|
| 8/28/2015 | 8/31/2015 | 11.95 | 0.05892 | – | – |
| 9/29/2015 | 9/30/2015 | 11.81 | 0.05782 | – | – |
| 10/29/2015 | 10/30/2015 | 11.74 | 0.05993 | ||
| 11/27/2015 | 11/30/2015 | 11.68 | 0.05477 | – | – |
| 12/29/2015* | 12/30/2015* | 11.49 | 0.14155 | – | – |
| Total 2015 | 0.37299 |
*Due to our annual tax review, there was additional earned income that was required to be paid out prior to the calendar year end.
| (Since Inception) | Fund | Index1 |
|---|---|---|
| Std. Deviation (%) | 3.3 | 3.8 |
| Sharpe Ratio | 3.1 | 0.8 |
| % Positive Months | 83.9 | 62.1 |
| % Negative Months | 16.1 | 37.9 |
As of 9/30/18.
1Bloomberg Barclays U.S. Aggregate Bond Index.
Bloomberg Barclays U.S. Aggregate Bond Index: An unmanaged index that measures the performance of the investment-grade universe of bonds issued in the United States. The index includes institutionally traded U.S. Treasury, government sponsored, mortgage and corporate securities. Please note that an investor cannot invest directly in the index; therefore its performance does not reflect a reduction for fees or expenses incurred in managing a portfolio.
Sharpe Ratio: A statistical measure that uses standard deviation and excess return to determine reward per unit of risk. A higher Sharpe ratio implies a better historical risk-adjusted performance. The Sharpe ratio has been calculated since inception using the 3-month LIBOR for the risk-free rate of return.
Standard Deviation: A statistical measure of portfolio risk used to measure variability of total return around an average, over a specified period of time. The greater the standard deviation over the period, the wider the variability or range of returns and hence, the greater the fund’s volatility—calculated since inception.
Portfolio
|
|
Non-Agency RMBS1 | 67.2% |
|
|
CMBS1 | 12.2% |
|
|
CLOs1 | 11.8% |
|
|
Corporates | 5.8% |
|
|
ABS1 | 2.6% |
|
|
Cash | 0.4% |
As of 9/30/18.
1RMBS: Residential Mortgage-Backed Securities, CMBS: Commercial Mortgage-Backed Securities, CLOs: Collateralized Loan Obligations, ABS: Asset-Backed Securities
The portfolio is actively managed. Holdings and weightings are subject to change daily and are provided for informational purposes only and should not be deemed as a recommendation to buy or sell the securities mentioned. Fund composition is based on net assets. Please scroll down to see important information about the Fund.
|
|
Mortgage Credit | 79.4% |
|
|
Corporate Credit | 17.6% |
|
|
Cash + Other | 3.0% |
As of 9/30/18.
The portfolio is actively managed. Holdings and weightings are subject to change daily and are provided for informational purposes only and should not be deemed as a recommendation to buy or sell the securities mentioned. Fund composition is based on net assets.
| Fund Characteristics | |
|---|---|
| Average Price – Portfolio | $89.6 |
| Average Price – Non-Agency | $86.2 |
| Effective Duration | 1.7 years |
| Correlation to Index | 0.1 |
As of 9/30/18.
Average Price: The weighted average of the prices of the Fund’s portfolio holdings.
Correlation: A statistical measure of how two securities move in relation to another. Index used for comparison is the Barclays Aggregate Bond Index.
Effective Duration: Measures a portfolio’s sensitivity to changes in interest rates. Generally, the longer the effective duration, the greater the price change relative to interest rate movements.
Management Team
Fund Facts
| Share Class | Ticker | CUSIP | Inception | Gross Expense Ratio* | Net Expense Ratio* |
|---|---|---|---|---|---|
| Class A | ANGLX | 03463K307 | 6/28/11 | 1.37% | 1.24% |
| Class I | ANGIX | 03463K406 | 8/16/12 | 1.12% | 0.99% |
| Class C | ANGCX | 03463K505 | 8/4/15 | 2.12% | 1.99% |
*Gross expense ratios are reported as of the 5/31/18 prospectus. The net expense ratios are reported as of the 1/31/18 Annual Report and are referenced in the 5/31/18 prospectus. The Adviser has contractually agreed to waive fees through 5/31/19.
Fund Commentary
30-Day SEC Yield: The SEC yield is an annualized yield based on the most recent 30-day period. Subsidized yields reflect fee waivers in effect. Without such waivers, yields would be reduced. Unsubsidized yields do not reflect fee waivers in effect. The SEC yield does not include prepayment income, which could be a significant contribution to yield.
Bloomberg Barclays U.S. Aggregate Bond Index: An unmanaged index that measures the performance of the investment-grade universe of bonds issued in the United States. The index includes institutionally traded U.S. Treasury, government sponsored, mortgage and corporate securities. Please note that an investor cannot invest directly in the index; therefore its performance does not reflect a reduction for fees or expenses incurred in managing a portfolio.
Duration: An approximate measure of a bond’s price sensitivity to changes in interest rates.
Past performance is no guarantee of future results.
Mutual fund investing involves risk; Principal loss is possible. Investments in debt securities typically decreases when interest rates rise. This risk is usually greater for longer-term debt securities. Investments in lower rated and non-rated securities present a greater risk of loss to principal and interest than higher rated securities. Investments in asset-backed and mortgage-backed securities include additional risks that investors should be aware of including credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. 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. Investing in derivatives could lose more than the amount invested. The Fund may make short sales of securities, which involves the risk that losses may exceed the original amount invested. For more information on these risks and other risks of the Fund, please see the Prospectus.
**As of 11/30/18, the Angel Oak Multi-Strategy Income Fund (ANGLX) received a Morningstar rating based on risk-adjusted returns of 4 stars overall, 4 stars for the three-year period & 4 stars for the five-year period among 287, 287, and 215 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. 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.
© 2018 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
The Fund may make short sales of securities, which involve the risk that losses in securities may exceed the original amount invested. The fund may use leverage, which may exaggerate the effect of any increase or decrease in the value of securities in the Fund’s portfolio on the Fund’s Net Asset Value and therefore may increase the volatility of the Fund. Derivatives involve risks different from, and in certain cases, greater than the risks presented by more traditional investments. Investments in debt securities typically decrease when interest rates rise. This risk is usually greater for longer-term debt securities. Investments in lower rated and non-rated securities present a greater risk of loss to principal and interest than higher rated securities. Investments in asset-backed and mortgage-backed securities include additional risks that investors should be aware of including credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. The Fund will incur higher and duplicative expenses when it invests in mutual funds, ETFs, and other investment companies. For more information on these risks and other risks of the Fund, please see the Prospectus.