Angel Oak Launches the Flexible Income Fund

Coincides with Formation of New Fund Complex and Trust

ATLANTA--()--Following the success of the firm’s Morningstar 5-star rated* Angel Oak Multi-Strategy Income Fund (ANGLX), Angel Oak Capital Advisors announces the launch of the Angel Oak Flexible Income Fund (Tickers: ANFLX and ANFIX).

The Angel Oak Flexible Income Fund takes a distinct approach to credit investing by actively allocating across higher yielding global fixed income instruments and flexibly shifting among structured credit, corporate credit and emerging asset classes that may not be as sensitive to changes in interest rates. The Fund seeks to deliver current income and total return.

The Fund has an accomplished portfolio management team featuring 13 industry veterans, including co- Managing Partners Brad Friedlander, the firm’s Head Portfolio Manager, and Sreeni Prabhu, its co-CEO and Chief Investment Officer.

“We’re excited to add this new fund to our growing lineup of fixed income investment products. The Flexible Income Fund furthers our goal of providing investors with exposure to less traditional, higher-income-producing assets that also have the potential for capital appreciation,” said Friedlander. “The ‘flexible’ nature of the fund provides our portfolio managers the freedom to invest in securities outside of indices, lowering the expected correlation to traditional fixed income. Lastly, asset allocation decisions are relative value driven in an effort to provide enhanced income and total return opportunities.”

The Angel Oak Flexible Income Fund will be part of the newly established Angel Oak Trust. The establishment of the Trust and its fund complex allows the firm to be well-positioned for future growth. Chuck Baldiswieler, President of Angel Oak Capital Advisors, noted the extensive experience of its Trustees.

“The robust expertise of the complex’s four trustees is remarkable and far-reaching. Collectively, Angel Oak’s Board represents over 120 years of combined investment management and financial services industry experience,” Baldiswieler commented.

The three independent trustees are:

  • Alvin R. Albe, Jr.: From 1991 through 2013, Mr. Albe served in various executive positions at The TCW Group, Inc., an investment management firm with over $100 billion of assets under management. Prior to joining TCW, from 1982 to 1991, Mr. Albe was President of Oakmont Corporation, a family office that administers and manages assets for high net worth individuals and their families.
  • Ira Cohen: Mr. Cohen is a mutual fund executive with more than 30 years of experience. An independent consultant in recent years, Mr. Cohen advises FINRA, Commonwealth International Series Trust Funds, DST Systems, Fidelity, Ivy Funds, The Depository Trust and Clearing Corporation (DTCC), and numerous other firms in the mutual fund industry. He also serves as an independent trustee for the Valued Advisers Trust Series of Funds.
  • Keith M. Schappert: Mr. Schappert has worked in the investment management industry for over 40 years with expertise spanning all facets of the industry. He served as Executive Vice Chairman and Regional Head for Asset Management in the Americas for Credit Suisse and also was President and CEO of Federated Investment Advisory Companies, where he was responsible for over $220 billion in assets under management in 136 mutual and closed-end funds. In addition, Mr. Schappert spent over 25 years with JP Morgan as the President and CEO of JP Morgan Investments.

About Angel Oak Capital Advisors, LLC

Angel Oak Capital Advisors, “Angel Oak Capital,” 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 seeks to deliver attractive risk-adjusted returns through a combination of stable current income and price appreciation. Our experienced investment team seeks the best opportunities in fixed income with a specialization in mortgage-backed securities and other areas of structured credit.

As of 9/30/14, Angel Oak Capital has approximately $4.2 billion in assets under management through a combination of mutual funds, private funds and separately managed accounts.
For more information, please visit www.angeloakcapital.com.

MUTUAL FUNDS INVOLVE RISK INCLUDING POSSIBLE LOSS OF PRINCIPAL.

Past results are not indicative of future results. There is risk of loss when investing in mutual funds. Investors should carefully consider the investment objectives, risks, charges and expenses of the Angel Oak Funds. This and other important information about the Funds is contained in the Prospectus, which can be obtained on the website at: www.angeloakcapital.com. The Prospectus should be read carefully before investing.

Angel Oak Flexible Income Fund is distributed by Quasar Distributors, LLC.
Angel Oak Multi-Strategy Income Fund is distributed by Unified Financial Securities, Inc., 2960 North Meridian Street, Suite 300, Indianapolis, IN 46208
Quasar and Unified Financial Securities are not affiliated.

References to other funds should not be interpreted as an offer of these securities.

Important information about the Flexible Income Fund

Mutual fund investing involves risk. Principal loss is possible. The Fund can make short sales of securities, which involves the risk that losses in securities may exceed the original amount invested. The Fund may use leverage, which may exaggerate the effect of any increase or decrease in the value of securities in the Fund’s portfolio on the Fund’s Net Asset Value and therefore may increase the volatility of the 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. Investment by the Fund in lower-rated and non-rated securities presents a greater risk of loss to principal and interest than higher-rated securities. The Fund is non-diversified, so it may be more susceptible to being adversely affected by a single corporate, economic, political or regulatory occurrence than a diversified fund. The Fund will incur higher and duplicative costs when it invests in mutual funds, ETFs and other investment companies. There is also the risk that the Fund may suffer losses due to the investment practices of the underlying funds. For more information on these risks and other risks of the Fund, please see the Prospectus. No investment strategy, including a total return strategy, can ensure a profit or protect against loss. Additionally, investing in a total return strategy may result in underperformance during a bull market. For more information on these risks and other risks of the fund, please see the prospectus.

Important information about the Multi-Strategy Fund

The Fund invests in high yield securities and unrated securities of similar credit quality (commonly known as junk bonds), as well as derivatives of such securities, and therefore is likely to be subject to greater levels of interest rate, credit and liquidity risk than funds that do not invest in such securities. These securities are considered predominately speculative with respect to the issuers continuing ability to make principal and interest payments. An economic downturn or period of rising interest rates could adversely affect the market for these securities and reduce the Funds ability to sell these securities (liquidity risk). If the issuer of a security is in default with respect to interest or principal payments, the Fund may lose its entire investment. The value of some mortgage-backed securities may be particularly sensitive to changes in prevailing interest rates, and although the securities are generally supported by some form of government or private insurance, there is no assurance that private guarantors or insurers will meet their obligations. No investment strategy, including an absolute return strategy, can ensure a profit or protect against loss. Additionally, investing in an absolute return strategy may result in underperformance during a bull market. For more information on these risks and other risks of the fund, please see the prospectus.

*As of 11/30/14, Morningstar rating of 5 stars overall and 5 stars for the three-year period among 201 multisector bond funds. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics.

© 2014 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

Contacts

Media Contact:
Gregory FCA for Angel Oak Capital Advisors
Freddy Martino, 610-228-2093
fmartino@gregoryfca.com
or
Company Contact:
Angel Oak Capital Advisors
Randy Chrisman, 404-953-4969
Marketing Director
randy.chrisman@angeloakcapital.com

Release Summary

Angel Oak Launches the Flexible Income Fund; Coincides with Formation of New Fund Complex and Trust

Contacts

Media Contact:
Gregory FCA for Angel Oak Capital Advisors
Freddy Martino, 610-228-2093
fmartino@gregoryfca.com
or
Company Contact:
Angel Oak Capital Advisors
Randy Chrisman, 404-953-4969
Marketing Director
randy.chrisman@angeloakcapital.com