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Angel Oak Capital Advisors Crosses $10B in AUM

ATLANTA--(BUSINESS WIRE)--

Asset growth coincides with fund accomplishments, new headquarters and promotion of key executives

Angel Oak Capital Advisors, LLC, an investment management firm specializing in value-driven alternative credit, announced today that the firm has surpassed $10 billion in assets under management across its platform of public funds, private funds and separately managed accounts. In addition, the firm also holds one of the largest books (approximately $3 billion) of servicing assets in the non-qualified mortgage market. Crossing $10 billion in AUM coincides with other important milestones and growth accomplishments for the firm, including adding talent and continuing to establish itself as a clear leader in the structured credit space.

“Since we founded Angel Oak Capital Advisors in 2008, the key to our success has been a robust, team-based investment process designed to deliver strong, risk-adjusted returns over a full credit cycle,” said Sreeni Prabhu, Angel Oak’s co-CEO and Chief Investment Officer. “We are always working to enhance our strategies and deliver new and unique products to meet our growing investor demand.”

Alongside the firm’s AUM growth this year, Angel Oak also:

  • Successfully raised $215 million in its first public closed-end fund offering, the Angel Oak Financial Strategies Income Term Trust (NYSE: FINS), which invests in the community bank debt sector.
  • Completed its 9th and 10th non-qualified mortgage securitizations in Q1 2019, continuing to lead the growth of the non-QM securitization market. AOMT 2019-1 and AOMT 2019-2 were issued at a respective $609 million and $621 million. Both transactions combined to make up 23% of the total Q1 2019 non-QM securitization volume.
  • Celebrated the one-year anniversary of the Angel Oak UltraShort Income Fund (AOUIX). As of May 31, 2019, the Fund’s one-year total return of 3.64%, versus 2.59% for the Morningstar Ultrashort Bond Fund category, placed it in the top 2% of 193 funds in that category.
  • Surpassed the 10-year mark for the Angel Oak High Yield Opportunities Fund (ANHIX). For the three- and five-year periods ending May 31, 2019, the Fund delivered annualized returns of 7.44% and 4.64%, respectively, outperforming its benchmark by 0.40% and 0.24% on an annualized basis over the same time periods.

Additionally, Angel Oak announced the following executive promotions, to enhance operational efficiencies and ensure effective management of future growth:

  • Clayton Triick, CFA® and Colin McBurnette have been promoted to Senior Portfolio Managers, and Cheryl Pate, CFA® has been promoted to a Portfolio Manager. All three demonstrate the strong investment and analytical skills Angel Oak requires, and have been important contributors to the success of the firm’s strategies.
  • David Silvera has been named Angel Oak’s Chief Operating Officer. He will coordinate the firm’s non-investment functions in order to support its investment performance, asset growth and organizational excellence.
  • Randy Chrisman becomes the firm’s Chief Marketing Officer. He will continue to lead the firm’s marketing and public relations efforts, while increasing his collaboration with the Angel Oak sales team.
  • Lu Chang, CFA®, FRM, CAIA assumes the role of Chief Risk and Operations Officer. She has overseen risk management efforts at Angel Oak for four and a half years. Chang’s new duties will include oversight of operations.

Along with executive promotions, Angel Oak Capital Advisors has been steadily adding new employees across all departments. Over the past five years, the firm has more than doubled the number of its associates from 36 to 73.

“We are fortunate to have skilled professionals from top to bottom,” Prabhu said. “Our success is the result of their hard work, and we could not be more proud of their efforts. As we look forward to the growth opportunities ahead, Angel Oak Capital Advisors will continue to hire and develop exceptional talent. We have clear goals for the future of Angel Oak Capital, and I am confident in our team’s ability to accomplish them.”

To accommodate its growing workforce, Angel Oak Capital Advisors moved to an expanded, LEED certified headquarters as of June 3. The firm’s new address is 3344 Peachtree Road NE, Suite 1725, Atlanta, GA 30326.

To learn more about Angel Oak Capital Advisors and the firm’s work in specialized fixed-income markets, visit angeloakcapital.com.

About Angel Oak Capital Advisors, LLC

Angel Oak Capital Advisors is an investment management firm focused on providing compelling fixed-income investment solutions for its clients. Backed by a value-driven approach, Angel Oak Capital Advisors 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.

For more information, please visit www.angeloakcapital.com.

Angel Oak UltraShort Income Fund

                         
Net Total Returns as of 3/31/19       3 Mo.       YTD       SI1  
AOUIX       1.07%       1.07%       3.35%  
Bloomberg Barclays 9-12 Month U.S. Treasury Bill Index       0.81%       0.81%       2.42%  
Morningstar Ultrashort Bond Fund Category       1.02%       1.02%       2.39%  
         
        AOUIX
Gross Expense Ratio*       0.78%
Net Expense Ratio*       0.25%

*The Adviser has contractually agreed to waive its fees to limit the Total Annual Fund Operating Expenses After Fee Waiver/Expense Reimbursement to 0.49% of the Fund’s average daily net assets through 5/31/20. In addition, the Adviser has voluntarily agreed to limit these expenses to 0.25%; this expense limit is applicable to current investors.
1The inception date of the Angel Oak UltraShort Income Fund I Class (AOUIX) was 4/2/18.

Angel Oak High Yield Opportunities Fund

                                               
Net Total Returns as of 3/31/19       3 Mo.       YTD       1 Year       3 Years       5 Years       10 Years
ANHIX       7.18%       7.18%       5.08%       8.75%       5.05%       9.09%
Bloomberg Barclays U.S. Corporate High Yield Bond Index       7.26%       7.26%       5.93%       8.56%       4.68%       11.26%
         
        ANHIX
Gross Expense Ratio*       1.00%
Net Expense Ratio*       0.65%

*The Adviser has contractually agreed to waive fees through 5/31/20.
The inception date of the Angel Oak High Yield Opportunities Fund I Class (ANHIX) was 3/31/09.

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 and may be obtained by calling 855-751-4324.

Investing involves risk. Principal loss is possible. The Funds’ derivative investments have risks, including the imperfect correlation between the value of such instruments and the underlying asset, rate or index, which creates the possibility that the loss on such instruments may be greater than the gain in the value of the underlying asset, rate or index; the loss of principal; the possible default of the other party to the transaction; and illiquidity of the derivative investments. The Funds may invest in illiquid securities and restricted securities. Investments in restricted securities could have the effect of increasing the amount of the Fund’s assets invested in illiquid securities if qualified institutional buyers are unwilling to purchase these securities. Changes in interest rates generally will cause the value of fixed-income instruments held by the Fund to vary inversely to such changes. Below investment grade instruments are commonly referred to as “junk” or high-yield instruments and are regarded as predominantly speculative with respect to the issuer’s capacity to pay interest and repay principal. Lower grade instruments may be particularly susceptible to economic downturns. The price paid by the Fund for asset-backed securities, including CLOs, the yield the Fund expects to receive from such securities and the average life of such securities are based on a number of factors, including the anticipated rate of prepayment of the underlying assets. Mortgage-backed securities are subject to the general risks associated with investing in real estate securities; that is, they may lose value if the value of the underlying real estate to which a pool of mortgages relates declines. See the prospectus for a more detailed description of the Funds’ risks.

Investors should carefully consider the investment objectives, risks, charges and expenses of the Angel Oak Mutual Funds. This and other important information about each Fund are contained in the Prospectus or Summary Prospectus for each Fund, which can be obtained by calling Shareholder Services at 855-751-4324. The Prospectus or Summary Prospectus should be read and carefully considered before investing.

Quasar Distributors, LLC, is the distributor for the series of Angel Oak Funds Trust and the Angel Oak Strategic Credit Fund.

The Morningstar Ultrashort Bond Fund Category average represents an average of all of the funds in the Morningstar Ultrashort Bond Fund Category.

Morningstar Rankings represent a fund's total-return percentile rank relative to all funds that are in 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.

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