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 10/31/19)
Prior Mo.
YTD
1 Year
3 Years
5 Years
Since Inception1
Financial Strategies Income Term Trust
NAV
0.74%
n/a
n/a
n/a
n/a
3.54%
MKT
1.33%
n/a
n/a
n/a
n/a
3.99%
Bloomberg Barclays US Aggregate Bond Index
0.30%
n/a
n/a
n/a
n/a
3.87%
Total Returns (as of 09/30/19)
Prior Qtr.
YTD
1 Year
3 Years
5 Years
Since Inception1
Financial Strategies Income Term Trust
NAV
2.22%
n/a
n/a
n/a
n/a
2.79%
MKT
2.11%
n/a
n/a
n/a
n/a
2.62%
Bloomberg Barclays US Aggregate Bond Index
2.27%
n/a
n/a
n/a
n/a
3.55%
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: The annual yield an investor would receive if the most recent fund distribution and current fund price stayed the same going forward. It is calculated by annualizing the most recent distribution and dividing by the Fund’s market price from the as-of date. The distribution rate may include a return of capital.
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
–
–
Total 2019
0.5879
*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
Community Bank Debt
79.9%
Non-Bank Financials
11.4%
Bank Equities
0.0%
Securitized Bank Debt
0.0%
Cash + Liquidity
8.7%
As of 6/30/19.
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.
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.
1Q 2019 High Yield Opportunities Fund Investor Call Replay Definitions: C&I: Commercial & Industrial. ECB: European Central Bank. M&A: Mergers and Acquisitions. OPEC: Organization of Petroleum Exporting Countries. Basis Point (bps): One hundredth of one percent and is used to denote the percentage change in a financial instrument. ICE BofA Merrill Lynch U.S. IG Corporate Bond Index: Tracks the performance of U.S. dollar denominated investment-grade corporate debt publicly issued in the U.S. domestic market. Qualifying securities must have an investment-grade rating (based on an average of Moody’s, S&P, and Fitch), at least 18 months to final maturity at the time of issuance, at least one year remaining term to final maturity as of the rebalancing date, a fixed coupon schedule, and a minimum amount outstanding of $250 million. Return on Equity: A measure of financial performance calculated by dividing net income by shareholders’ equity. Free Cash Flow: Represents the cash a company produces through its operations, less the cost of expenditures on assets.
Morningstar Rankings represent a fund’s total-return percentile rank relative to all funds that have the same Morningstar Category. The highest percentile rank is 1 and the lowest is 100. It is based on Morningstar total return, which includes both income and capital gains or losses and is not adjusted for sales charges or redemption fees. Morningstar ranked ANHIX in the top 35, 11, 5 & 70 out of 700, 610, 519 & 332 funds for the 1, 3, 5 & 10 year periods as of 3/31/19. Past performance does not guarantee future results.
1Q 2019 Multi-Strategy Income Fund Investor Call Replay Definitions: Basis Point (bps): One hundredth of one percent and is used to denote the percentage change in a financial instrument. LIBOR: A benchmark rate that some of the world’s leading banks charge each other for short-term loans. It stands for Intercontinental Exchange London Interbank Offered Rate and serves as the first step to calculating interest rates on various loans throughout the world. QM: Qualified mortgage.
1Q 2019 UltraShort Income Fund Investor Call Replay Definitions: Beta: A measure of a stock’s risk of volatility compared to the overall market. Cash Flow: Periodic coupons received by the bondholder during their holding period. FOMC: Federal Open Market Committee.
1Q 2019 Financials Income Fund Investor Call Replay Morningstar Rankings represent a fund’s total-return rank relative to all funds that have the same Morningstar Category. The highest rank is 1 and the lowest is based on the total number of funds ranked in the category. It is based on Morningstar total return, which includes both income and capital gains or losses and is not adjusted for sales charges or redemption fees. Morningstar ranked ANFIX 186 out of 250 Corporate Bond funds for the 1 year period as of 3/31/19. Past performance does not guarantee future results.
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.
