Angel Oak Multi-Strategy Income Fund Institutional Shares (ANGIX)

Overview

The fund specializes in a diversified investment strategy, centering on various types of mortgage-backed and asset-backed securities. Its primary focus is to invest in a mix of agency and non-agency residential mortgage-backed securities (RMBS), alongside commercial equivalents (CMBS)—and extends into other complex financial instruments such as collateralized loan obligations (CLOs), debt obligations (CDOs), mortgage obligations (CMOs), bond obligations (CBOs), and asset-backed securities (ABS). The fund is characterized by its flexibility in investment choices, not being bound by constraints related to the maturity and duration of the securities it selects. It ventures into high-yield and unrated securities, thereby embracing a broad spectrum of investment opportunities with varying degrees of risk and potential return.

Products and Services

• Residential Mortgage-Backed Securities (RMBS)
  

  These are securities that represent claims to the cash flows from pools of mortgage loans, primarily on residential property. RMBS can be issued by structures that are agency-guaranteed (e.g., Ginnie Mae, Fannie Mae, Freddie Mac) or non-agency entities, offering different levels of risk and return.

• Commercial Mortgage-Backed Securities (CMBS)
  

  Similar to RMBS, CMBS are securities backed by mortgages on commercial properties. These investments offer opportunities in a diverse array of commercial real estate sectors, including office buildings, retail space, and hotels, among others.

• Collateralized Loan Obligations (CLOs)
  

  CLOs are securities backed by a pool of debt, often corporate loans with varying degrees of credit quality. The fund invests in CLOs to gain exposure to corporate debt markets, potentially providing higher yields than government or corporate bonds.

• Collateralized Debt Obligations (CDOs)
  

  CDOs are a type of structured asset-backed security whose value and payments are derived from a portfolio of fixed-income underlying assets. CDOs allow the fund to invest in a diversified pool of credit risk.

• Collateralized Mortgage Obligations (CMOs)
  

  CMOs are a type of mortgage-backed security in which the cash flows are structured into different tranches, each with its own level of risk and reward. The fund can target specific tranches that match its risk-reward profile.

• Collateralized Bond Obligations (CBOs)
  

  CBOs are similar to CDOs, but they are primarily backed by a pool of bonds. These can vary widely in terms of underlying assets, including emerging market bonds, high-yield bonds, and others.

• Asset-Backed Securities (ABS)
  

  ABS are financial securities backed by a loan, lease, or receivables against assets other than real estate and mortgage-backed securities. This could include anything from auto loans and credit card debt to royalties and leases.