The Angel Oak Core Impact Fund seeks total return while giving special consideration to positive aggregate environmental, social, and/or governance (ESG) impact outcomes. The Fund will look to allocate capital to fixed income securities that have a positive impact on the global environment across all levels of society. The Fund also utilizes active engagement with issuers to positively impact their ESG factors by promoting sustainable practices.
Key Impact Goals:
Expanding Access to Consumer Credit:
Targeting structured investments in credits to near prime and low-to-moderate-income borrowers to assist in broadening credit availability for U.S. consumers
Broadening Access to Housing:
Mortgage credit lending through agency and non-agency residential mortgage-backed securities (RMBS) investments, particularly to first-time buyers, small-business owners, and self-employed borrowers
Supporting Small Businesses:
Investing in community banks that are Small Business Administration (SBA)-approved lenders
Sponsoring Community Development:
Investing in community banks with strong Community Reinvestment Act (CRA) ratings
Embedding Environmental Sustainability:
Investing in green commercial and residential MBS that meet ENERGY STAR® and Center for International Climate Research (CICERO) environmental standards
Promoting CDP environmental reporting elements in public disclosures to improve transparency
Strengthening Corporate Governance:
Targeting companies with strong and improving ESG factors
Promoting the Sustainable Accounting Standards Board (SASB) ESG/sustainable disclosure framework to improve transparency
Supporting the Provision of Quality Healthcare Services:
Investing in companies and asset-backed securities that provide financing for medical equipment, medical services and facilities that provide healthcare
ESG Incorporation:
The ESG team partners with the portfolio managers to identify industries, sectors, issuers, and assets that provide positive environmental, societal and governance opportunities. All assets held in the portfolio are evaluated in accordance with Angel Oak’s Responsible Investment Policy.