Menu Responsible Investing ANGEL OAK CAPITAL IS COMMITTED TO RESPONSIBLE INVESTMENT PRACTICES Angel Oak believes strongly that opportunities exist to meet or exceed its risk-return requirements while also delivering a positive impact on society. Angel Oak is committed to providing financial security to its investors, and views the integration of Environmental, Social and Corporate Governance (“ESG”) considerations into firm strategies as a way to help deliver superior long-term performance. Angel Oak is guided by its Responsible Investment Policy which provides a framework to integrate ESG factors into its investment strategies. This framework ensures that Angel Oak identifies and implements investment opportunities that address the UN’s Sustainable Develpement Goals (SDGs) while also meeting or exceeding its benchmark performance requirements. Our Responsible Investing Approach Angel Oak is proud to be a signatory to the United Nations-supported Principles for Responsible Investment (PRI), an organization that is dedicated to sharing information and furthering responsible investment practices for the betterment of the asset management industry and the global community. PRI is recognized as the leading global network for investors incorporating ESG considerations into their philosophies. Their network of international investors collaborate to implement a set of six principles providing a framework for integrating ESG factors into investment analysis and ownership practices aligned with fiduciary duties: To incorporate ESG issues into investment analysis and decision-making processes; To be an active owner and to incorporate ESG issues into our ownership policies and practices; To seek appropriate disclosure on ESG issues by the entities in which we invest; To promote acceptance and implementation of the Principles within the investment industry; To work with the PRI Secretariat and other signatories to enhance their effectiveness in implementing the Principles; To report on our activities and progress towards implementing the Principles. PRI Public Report Angel Oak was a founding member of UNPRI’s Structured Products Advisory Committee. Read a recent paper published on incorporating ESG into securitized products investing here. ANGEL OAK’S ORGANIZATIONAL AFFILIATIONS CDP Angel Oak is an investor in the CDP (formerly Carbon Disclosure Project), a not-for-profit organization that has developed a global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts. Over the past 15 years, the CDP has created a system that has resulted in unparalleled engagement on environmental issues worldwide. SASB Angel Oak is a SASB Alliance Member and shows its commitment to transparency by providing the Sustainable Accounting Standards Board (SASB) disclosure elements for asset managers. Angel Oak also actively encourages its invested companies to make their own industry-appropriate SASB disclosure statements. Responsible Investment Policy Summary Angel Oak has emphasized responsible investment (“RI”) principles as an important component of the firm’s corporate values since its founding. Angel Oak implemented a Responsible Investment Policy in 2019 to govern its ESG-aligned investment strategies. Angel Oak has the opportunity to have a positive impact on society and the environment in all aspects of its business and operations. Angel Oak believes that taking an active approach to assessing ESG issues in investment decisions has the potential to generate enhanced performance for its investors as well as provide benefits to society as a whole. Angel Oak invests across a broad variety of asset classes and takes its responsibility as a capital provider seriously. Angel Oak’s investment strategies will be implemented in a manner that optimizes the firm’s ability to contribute broadly to well-being and sustainable development through ESG integration, active ownership, and impact investing. Angel Oak has always encouraged the development of strategies that have a specific responsible investment or impact purpose. Responsible Corporate Credit Strategy Angel Oak Formally Incorporates ESG Factors into the Investment Process for Four Public Mutual Funds and One Closed-End Fund Specific ESG issues addressed in initial and ongoing due diligence process ESG scorecard assesses relative and absolute alignment with ESG factors Periodic engagement with the invested company’s management to improve alignment over time Financials Income Fund High Yield Opportunities Fund Multi-Strategy Income Fund UltraShort Income Fund Dynamic Financial Strategies Income Term Trust Angel Oak’s ESG-integrated investment strategies strongly align with the ESG factors incorporated in the United Nations Sustainable Development Goals (SDGs) Lending to designated affordable housing projects Loans to industries that have positive environmental and societal benefits Solar/renewable energy Waste management/recycling Pollution and chemical remediation Small Business Administration (SBA) program loans to local companies which support job creation Activities that satisfy Community Reinvestment Act (CRA) requirements Affordable housing loans to low-to-moderate income borrowers Loans to businesses in economically distressed areas Student lending programs Lending to support nonprofits, foundations, and government agencies Environmental insurance policy providers LEARN MORE Get More Insights From Angel Oak Capital Sign up STAY CONNECTED Follow Us On Our Social Media Accounts ESG investment strategies limit the universe of investment opportunities available to any Fund and will affect a Fund’s exposure to certain issuers, sectors, regions, and types of investments, which may result in a Fund forgoing opportunities to buy or sell certain securities when it might otherwise be advantageous to do so. Adhering to a Fund’s ESG investment strategy may also affect the Fund’s performance relative to similar funds that do not seek to invest in companies based on their ESG impact. Securities of issuers that the Adviser has identified as having favorable ESG characteristics may shift into and out of favor depending on market and economic conditions, and certain investments may be dependent on U.S. and foreign government policies, including tax incentives and subsidies, which may change without notice. ESG determinations are inherently subjective and investors’ views may differ as to what constitutes a positive or negative aggregate ESG impact outcome. There is no guarantee that the Adviser’s views, security selection criteria, or investment judgment will reflect the beliefs or values of any particular investor. In addition, there can be no assurance that issuers in which any Fund invests will be successful in their efforts to offer solutions that generate a positive ESG impact. When assessing whether an issuer meets any related Fund’s investment strategy and criteria, the Adviser may rely on third-party data that it believes to be reliable, but it does not guarantee the accuracy of such third-party data. ©2021 Angel Oak Capital Advisors, LLC. Glossary Privacy Policy CA Privacy Policy Terms Of Use Social Media Disclosure Contact Us SHAREHOLDER SERVICES: 855-751-4324 The Angel Oak Funds are distributed by Quasar Distributors, LLC. References to other mutual funds should not to be considered an offer of these securities. 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. Investing involves risk. Principal loss is possible. 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 is contained in the Prospectus or Summary Prospectus for each Fund, which can be obtained by calling Shareholder Services or clicking here. The Prospectus or Summary Prospectus should be read carefully before investing. Investment products: Not FDIC Insured May Lose Value Not Bank Guaranteed By continuing on this site or clicking Yes to Accept, you agree to our use of cookies and other technologies to process your personal data to personalize your experience and for other purposes. Yes