Menu ASCIX Angel Oak Strategic Credit Fund Prospectus Fact Sheet Fund Alert TOTAL ASSETS $13.3M As of 9/30/21 OVERVIEW The Strategic Credit Fund is a closed-end interval fund that will invest across structured and corporate credit focusing on the best relative value opportunities across fixed income. The Fund’s asset allocation is not static and is expected to change over time. The Fund’s portfolio managers lead a team of sector specialists responsible for researching opportunities within their sector and making recommendations to the Fund’s portfolio managers. This top-down approach incorporates analysis of interest rates, global economic expectations, and fixed income valuation. At least 80% of the Fund’s net assets will be invested in the following credit related assets: Corporate debt and preferred securities, with a focus on subordinated debt, senior debt and preferred securities of banks and diversified financial companies Agency and non-agency residential mortgage-backed securities (RMBS) Commercial mortgage-backed securities (CMBS) Collateralized loan obligations (CLOs) Asset-backed securities (ABS) Residential loans and mortgages Objective The Strategic Credit Fund seeks total return. As of 11/30/21 30-Day SEC Yields Subsidized 6.91% Unsubsidized 4.99% PERFORMANCE TOTAL RETURNS Daily Monthly Quarterly The inception date of the Angel Oak Strategic Credit Fund I Class (ASCIX) was 12/26/17. ANNUAL RETURNS ASCIX Bloomberg U.S. Aggregate Bond Index 2020 2019 2018 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 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. Short-term performance, in particular, 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. The inception date of the Angel Oak Strategic Credit Fund Class I (ASCIX) was 12/26/17. Periods less than one year are cumulative. GROWTH OF $10,000 SINCE INCEPTION As of 9/30/21 ASCIX Bloomberg U.S. Aggregate Bond Index Jan 2018 Jul 2018 Jan 2019 Jul 2019 Jan 2020 Jul 2020 Jan 2021 Jul 2021 $8,000 $9,000 $10,000 $11,000 $12,000 $13,000 This chart illustrates the performance of a hypothetical $10,000 investment made in Angel Oak Strategic Credit Fund (ASCIX) I Shares. The inception date of the Angel Oak Strategic Credit Fund I Class (ASCIX) was 12/26/17. It assumes reinvestment of capital gains and dividends. This chart is not intended to imply any future performance. FUND STATISTICS As of 9/30/21 ASCIX Index Standard Deviation (%) 7.0 4.4 Sharpe Ratio 1.0 0.9 Correlation to Index 0.0 1.0 ASCIX Index % Positive Months 86.7 57.8 % Negative Months 13.3 42.2 DISTRIBUTIONS Ticker Record Date Payable Date Reinvestment Price ($/share) Ordinary Income ($/share) ST Cap Gains ($/share) LT Cap Gains ($/share) ASCIX 11/29/21 11/30/21 23.13 0.20772 - - ASCIX 10/29/21 10/31/21 23.21 0.20540 - - ASCIX 9/29/21 9/30/21 23.23 0.19725 - - ASCIX 8/30/21 8/31/21 23.06 0.20434 - - ASCIX 7/29/21 7/30/21 23.07 0.15593 - - ASCIX 6/29/21 6/30/21 23.09 0.15087 - - ASCIX 5/27/21 5/28/21 23.08 0.15567 - - ASCIX 4/29/21 4/30/21 23.06 0.14942 - - ASCIX 3/30/21 3/31/21 22.89 0.15560 - - ASCIX 2/25/21 2/26/21 23.04 0.13992 - - ASCIX 1/28/21 1/29/21 23.02 0.14773 - - ASCIX 12/30/20 12/31/20 22.70 0.16485 - - ASCIX 12/28/20* 12/29/20* 22.63 0.15755 - - ASCIX 11/29/20 11/30/20 22.70 0.16041 - - ASCIX 10/29/20 10/30/20 21.89 0.16489 - - ASCIX 9/29/20 9/30/20 21.75 0.14904 - - ASCIX 8/30/20 8/31/20 21.57 0.16889 - - ASCIX 7/30/20 7/31/20 21.56 0.16112 - - ASCIX 6/29/20 6/30/20 21.19 0.15781 - - ASCIX 5/28/20 5/29/20 19.96 0.16748 - - ASCIX 4/29/20 4/30/20 19.55 0.12048 - - ASCIX 3/30/20 3/31/20 19.16 0.13548 - - ASCIX 2/27/20 2/28/20 24.69 0.13177 - - ASCIX 1/30/20 1/31/20 24.71 0.13971 - - ASCIX 12/30/19 12/31/19 24.51 0.13963 - - ASCIX 12/19/19* 12/20/19* 24.48 0.04908 - - ASCIX 11/27/19 11/29/19 24.50 0.13459 - - ASCIX 10/30/19 10/31/19 24.43 0.14034 - - ASCIX 9/27/19 9/30/19 24.59 0.13081 - - ASCIX 8/29/19 8/30/19 24.62 0.13495 - - ASCIX 7/30/19 7/31/19 24.58 0.13552 - - ASCIX 6/27/19 6/28/19 24.61 0.13254 - - ASCIX 5/30/19 5/31/19 24.66 0.14002 - - ASCIX 4/29/19 4/30/19 24.60 0.13587 - - ASCIX 3/28/19 3/29/19 24.55 0.13480 - - ASCIX 2/27/19 2/28/19 24.54 0.12146 - - ASCIX 1/30/19 1/31/19 24.49 0.13067 - - ASCIX 12/30/18 12/31/18 24.38 0.15918 - - ASCIX 12/20/18 12/21/18 24.82 0.31671 0.03098 0.02085 ASCIX 11/29/18 11/29/18 25.14 0.15473 - - ASCIX 10/30/18 10/31/18 25.32 0.14991 - - ASCIX 9/27/18 9/28/18 25.38 0.14492 - - ASCIX 8/30/18 8/31/18 25.36 0.17115 - - ASCIX 7/30/18 7/31/18 25.33 0.15009 - - ASCIX 6/28/18 6/29/18 25.34 0.14525 - - ASCIX 5/30/18 5/31/18 25.36 0.12356 - - ASCIX 4/29/18 4/30/18 25.20 0.08224 - - ASCIX 3/28/18 3/29/18 25.11 0.08517 - - ASCIX 2/27/18 2/28/18 25.10 0.03857 - - ASCIX 1/30/18 1/31/18 25.23 0.03918 - - ASCIX 12/29/17 12/29/17 24.99 0.00685 - - *Due to our annual tax review, there was additional earned income that was required to be paid out prior to the calendar year end. PORTFOLIO SECTOR BREAKDOWN As of 9/30/21 Corporates RMBS CMBS CLO ABS Cash & Equivalents 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. CREDIT QUALITY As of 9/30/21 AAA BBB BB B CCC & Below Unrated Unrated consists of bonds that do not have ratings. Total may not equal 100% due to rounding. Ratings determined by S&P and Moody’s. FUND CHARACTERISTICS As of 9/30/21 Fund Assets (All Classes) $13.3 Million Number of Securities 62 Effective Duration 2.9 Average Price (Portfolio) $79.9 Floating Rate (%) 44.2 FUND INFORMATION As of 9/30/21 Ticker ASCIX CUSIP 03464F109 Gross Expense Ratio 5.60% Net Expense Ratio 0.75% Gross expense ratios are reported as of the 5/31/21 prospectus and the net expense ratios are reported as of the 1/31/21 Annual Report. The Adviser has agreed to waive fees and may amend, extend, or discontinue this waiver at any time without notice. As of 11/30/21 Distribution Yield 10.93% 30-Day SEC Yield (Subsidized) 6.91% 30-Day SEC Yield (Unsubsidized) 4.99% MANAGEMENT TEAM Sreeni Prabhu Managing Partner, Co-CEO & Group Chief Investment Officer Sam Dunlap Chief Investment Officer, Public Strategies Matthew Kennedy, CFA® Head of Corporate Credit, Senior Portfolio Manager Berkin Kologlu Senior Portfolio Manager Colin McBurnette Senior Portfolio Manager Clayton Triick, CFA® Senior Portfolio Manager RECENT INSIGHTS 07 - 28 - 2021 Strategic Credit Fund Commentary Read commentary DOCUMENTS Fund Marketing Materials Fund Legal Materials Strategic Credit Fund Fact Sheet LEARN MORE Get More Insights From Angel Oak Capital Sign up STAY CONNECTED Follow Us On Our Social Media Accounts Investing involves risk; principal loss is possible. The Fund’s shares will not be listed on an exchange in the foreseeable future, if at all. The Fund’s 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 Fund 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. The Fund will be subject to risks associated with adverse political and economic developments in foreign countries, including seizure or nationalization of foreign deposits, the imposition of economic sanctions, different legal systems and laws relating to bankruptcy and creditors’ rights, and the potential inability to enforce legal judgments, all of which could cause the Fund to lose money on its investments in non-U.S. 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. For more information on these risks and other risks of the Fund, please see the Prospectus. It is possible that a repurchase offer may be oversubscribed, in which case shareholders may only have a portion of their shares repurchased. Quarterly repurchase offers and liquidity are limited. ©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. 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