Financial Strategies Income Term Trust
Overview
FOCUSING ON COMMUNITY BANK DEBT
The Angel Oak Financial Strategies Income Term Trust is a closed-end fund that seeks current income with a secondary objective of total return. The Fund utilizes a banking sector debt-centric strategy, which exhibits low historical correlations to other areas of the market. The investment highlights of the Fund include:
- Access to a niche market segment.
- Focus on high quality credit with at least 50% of the Fund’s depository institution debt investments publicly rated investment grade or, if deemed unrated, scored as investment grade by Angel Oak’s in-house proprietary BankSURF credit-quality assessment model.
- Asset class duration historically uncorrelated to interest rates.
- Benefits from Angel Oak’s extensive resources and expertise in actively managing community bank debt investments.
Performance
| Total Returns (as of 09/30/20) | Prior Mo. | YTD | 1 Year | 3 Years | 5 Years | Since Inception1 | |
|---|---|---|---|---|---|---|---|
| Financial Strategies Income Term Trust | NAV | 0.87% | -3.56% | -1.61% | n/a | n/a | 0.85% |
| MKT | 0.89% | -14.09% | -10.33% | n/a | n/a | -6.04% | |
| Bloomberg Barclays US Aggregate Bond Index | -0.05% | 6.79% | 6.98% | n/a | n/a | 7.98% | |
| Total Returns (as of 09/30/20) | Prior Qtr. | YTD | 1 Year | 3 Years | 5 Years | Since Inception1 | |
|---|---|---|---|---|---|---|---|
| Financial Strategies Income Term Trust | NAV | 2.76% | -3.56% | -1.61% | n/a | n/a | 0.85% |
| MKT | 1.53% | -14.09% | -10.33% | n/a | n/a | -6.04% | |
| Bloomberg Barclays US Aggregate Bond Index | 0.62% | 6.79% | 6.98% | n/a | n/a | 7.98% | |
Current performance may be lower or higher than the performance data quoted. Performance quoted is past performance and 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. Short-term performance is not a good indication of the Fund’s future performance and an investment should not be made based solely on returns. Performance is net of fees.
1The inception date of the Angel Oak Financial Strategies Income Term Trust (FINS) was 5/28/19.
2Managed Assets means the total assets of the Trust (including any assets attributable to leverage) minus the sum of accrued liabilities (other than debt representing financial leverage).
3Distribution Rate: Distribution rates are calculated by annualizing the most recent distribution paid or declared through today’s date and then dividing by the market price on the last day of the quarter. The distribution consists of the sum of net investment income, net realized short-term capital gains, net realized long-term capital gains, and return of capital. Distribution rates may vary. Any distribution adjustment will not be reflected until after the declaration date for the next distribution. See the Fund’s 19a-1 Notices, if any, located under the “Tax Notices” section of the website for estimates of distribution sources. Final determination of the source and tax status of all distributions paid in the current year will be made after year-end.
| Ex-Date | Record Date | Payable Date | Distribution ($/share) | ST Cap Gains ($/share) | LT Cap Gains ($/share) | |
|---|---|---|---|---|---|---|
| 1/16/2020 | 1/17/2020 | 1/31/2020 | 0.1097 | – | – | |
| 2/13/2020 | 2/14/2020 | 2/28/2020 | 0.1112 | – | – | |
| 3/16/2020 | 3/17/2020 | 3/31/2020 | 0.1116 | – | – | |
| 4/15/2020 | 4/16/2020 | 4/30/2020 | 0.1013 | – | – | |
| 5/14/2020 | 5/15/2020 | 5/29/2020 | 0.1010 | – | – | |
| 6/15/2020 | 6/16/2020 | 6/30/2020 | 0.1010 | – | – | |
| 7/16/2020 | 7/17/2020 | 7/31/2020 | 0.1010 | – | – | |
| 8/14/2020 | 8/17/2020 | 8/31/2020 | 0.1010 | – | – | |
| 9/15/2020 | 9/16/2020 | 9/30/2020 | 0.1010 | – | – | |
| 10/15/2020 | 10/16/2020 | 10/30/2020 | 0.1010 | – | – | |
| Total 2020 | 1.0398 |
*Monthly dividend per share annualized and divided by the monthly market price per share. The Fund’s distributions were comprised of net investment income and short-term capital gains. The distribution rate alone is not indicative of Fund performance. To the extent that any portion of the current distributions were estimated to be sourced from something other than income, such as return of capital, the source will be disclosed.
| Ex-Date | Record Date | Payable Date | Distribution ($/share) | ST Cap Gains ($/share) | LT Cap Gains ($/share) | |
|---|---|---|---|---|---|---|
| 7/11/2019 | 7/12/2019 | 7/26/2019 | 0.1172 | – | – | |
| 8/15/2019 | 8/16/2019 | 8/30/2019 | 0.1171 | – | – | |
| 9/13/2019 | 9/16/2019 | 9/30/2019 | 0.1181 | – | – | |
| 10/16/2019 | 10/17/2019 | 10/31/2019 | 0.1178 | – | – | |
| 11/14/2019 | 11/15/2019 | 11/29/2019 | 0.1177 | – | – | |
| 12/16/2019 | 12/17/2019 | 12/31/2019 | 0.1177 | – | – | |
| Total 2019 | 0.7056 |
*Monthly dividend per share annualized and divided by the monthly market price per share. The Fund’s distributions were comprised of net investment income and short-term capital gains. The distribution rate alone is not indicative of Fund performance. To the extent that any portion of the current distributions were estimated to be sourced from something other than income, such as return of capital, the source will be disclosed.
Portfolio
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Bank Debt | 82.7% |
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Non-Bank Financials | 12.8% |
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Common Equity | 0.0% |
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Preferred Equity | 1.6% |
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Other1 | 1.2% |
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Cash & Equivalents | 1.7% |
As of 9/30/20.
1Other includes investments in asset-backed securities, loan participation, and private equity.
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.
Management Team
Fund Facts
| Term Sheet Summary | |
|---|---|
| Tax Reporting | Form 1099 |
| Term | 12 Years |
| Credit Strategy | Active, fundamental relative value |
| Investment Category | Investment Grade Credit |
| Benchmark | Bloomberg Barclays U.S. Aggregate Bond Index |