Angel Oak Strategic Credit Fund Breaks $100M Asset Mark as Investors Turn to Interval Fund Structure
Angel Oak Capital Advisors announced that its Angel Oak Strategic Credit Fund (ASCIX) has surpassed $100 million in assets under management. The interval fund, which invests primarily in non-agency residential mortgage-backed securities and other asset-backed securities, has delivered compelling risk-adjusted returns over its six-year lifespan. The fund's strategy includes a distinct overweight to strategic credit assets, offering diversification not typically found in traditional fixed-income funds.
As of June 30, 2024, ASCIX reported a year-to-date return of 6.38% and a 1-year return of 12.93%, outperforming the Bloomberg U.S. Aggregate Bond Index. The interval fund structure has proven advantageous during economic fluctuations, allowing the fund to invest in higher-yielding positions while managing liquidity and redemption risks.
Angel Oak Capital Advisors ha annunciato che il suo Angel Oak Strategic Credit Fund (ASCIX) ha superato 100 milioni di dollari in attivi gestiti. Il fondo intervallo, che investe principalmente in titoli garantiti da mutui residenziali non agenziali e altri titoli garantiti da attività, ha offerto rendimenti interessanti aggiustati per il rischio nel corso della sua vita di sei anni. La strategia del fondo prevede un rilievo distintivo sugli attivi di credito strategico, offrendo diversificazione che non si trova generalmente nei fondi obbligazionari tradizionali.
Al 30 giugno 2024, ASCIX ha registrato un ritorno anno fino ad oggi del 6.38% e un ritorno annuale del 12.93%, superando l'Indice Obbligazionario Aggregato degli Stati Uniti di Bloomberg. La struttura del fondo intervallo si è rivelata vantaggiosa durante le fluttuazioni economiche, permettendo al fondo di investire in posizioni a rendimento più elevato mentre gestisce la liquidità e i rischi di rimborso.
Angel Oak Capital Advisors anunció que su Angel Oak Strategic Credit Fund (ASCIX) ha superado 100 millones de dólares en activos bajo gestión. El fondo de intervalo, que invierte principalmente en valores respaldados por hipotecas residenciales no gubernamentales y otros valores respaldados por activos, ha proporcionado rendimientos ajustados al riesgo atractivos a lo largo de su vida de seis años. La estrategia del fondo incluye un sobrepeso distintivo en activos de crédito estratégico, ofreciendo diversificación que no suele encontrarse en fondos de renta fija tradicionales.
Hasta el 30 de junio de 2024, ASCIX reportó un rendimiento acumulado del 6.38% y un rendimiento a 1 año del 12.93%, superando el Índice de Bonos Agregados de EE. UU. de Bloomberg. La estructura de fondo de intervalo ha demostrado ser ventajosa durante fluctuaciones económicas, permitiendo al fondo invertir en posiciones de mayor rendimiento mientras gestiona la liquidez y los riesgos de redención.
Angel Oak Capital Advisors는 Angel Oak Strategic Credit Fund (ASCIX)가 관리 자산 1억 달러를 초과했다고 발표했습니다. 이 구간 펀드는 주로 비기관 주택담보대출 담보증권 및 기타 자산 담보증권에 투자하며, 6년의 운영 기간 동안 매력적인 위험 조정 수익률을 제공했습니다. 펀드의 전략에는 전통적인 고정 수익 펀드에서는 흔히 찾아볼 수 없는 전략적 신용 자산에 대한 뚜렷한 비중이 포함되어 있습니다.
2024년 6월 30일 기준으로 ASCIX는 연초 대비 수익률 6.38% 및 1년 수익률 12.93%를 기록하였으며, 블룸버그 미국 종합 채권 지수를 초과했습니다. 구간 펀드 구조는 경제적 변동이 있을 때 유리한 것으로 입증되어, 펀드가 유동성과 환매 리스크를 관리하는 동시에 더 높은 수익을 올릴 수 있는 포지션에 투자할 수 있게 합니다.
Angel Oak Capital Advisors a annoncé que son Angel Oak Strategic Credit Fund (ASCIX) a dépassé 100 millions de dollars d'actifs sous gestion. Ce fonds d'intervalle, qui investit principalement dans des titres adossés à des hypothèques résidentielles non gouvernementales et d'autres titres adossés à des actifs, a offert des rendements ajustés au risque attrayants tout au long de ses six années d'existence. La stratégie du fonds inclut un surpoids distinct pour les actifs de crédit stratégique, offrant une diversification qui n'est généralement pas présente dans les fonds obligataires traditionnels.
Au 30 juin 2024, ASCIX a rapporté un rendement depuis le début de l'année de 6,38% et un rendement sur 1 an de 12,93%, dépassant ainsi l'Indice Obligataire Agrégé américain de Bloomberg. La structure du fonds d'intervalle s'est révélée avantageuse lors des fluctuations économiques, permettant au fonds d'investir dans des positions à rendement plus élevé tout en gérant la liquidité et les risques de rachat.
Angel Oak Capital Advisors hat bekannt gegeben, dass ihr Angel Oak Strategic Credit Fund (ASCIX) über 100 Millionen Dollar an verwalteten Vermögenswerten hinaus ist. Der Intervallfonds, der hauptsächlich in von Nicht-Agenturen begebene Wohnhypothekenbesicherte Wertpapiere und andere besicherte Vermögenswerte investiert, hat über seinen sechsjährigen Lebenszyklus ansprechende risikoadjustierte Renditen erzielt. Die Strategie des Fonds umfasst eine deutliche Übergewichtung strategischer Kreditassets und bietet eine Diversifizierung, die in traditionellen Rentenfonds nicht üblich ist.
Zum 30. Juni 2024 meldete ASCIX einen Jahres-Rendite von 6,38% und eine 1-Jahres-Rendite von 12,93%, und übertraf somit den Bloomberg U.S. Aggregate Bond Index. Die Struktur des Intervallfonds hat sich während wirtschaftlicher Schwankungen als vorteilhaft erwiesen, da der Fonds in höherverzinsliche Positionen investieren konnte, während er die Liquidität und Rückzahlungsrisiken verwaltete.
- ASCIX surpassed $100 million in assets under management
- Year-to-date return of 6.38% as of June 30, 2024
- 1-year return of 12.93% as of June 30, 2024
- Outperformed Bloomberg U.S. Aggregate Bond Index
- Interval fund structure allows for higher-yielding positions and better risk management
- None.
Insights
The Angel Oak Strategic Credit Fund (ASCIX) reaching
The interval fund structure allows for investments in less liquid assets, potentially offering higher yields. This approach has proven advantageous during market volatility, allowing the fund to maintain positions and capitalize on opportunities. The fund's focus on structured credit, particularly non-agency RMBS and ABS, provides diversification benefits that may be attractive to investors seeking to optimize their fixed-income portfolios in the current macroeconomic environment.
The growing interest in ASCIX reflects a broader trend of investors seeking alternative fixed-income strategies in response to challenging market conditions. Traditional fixed-income assets and passive strategies have struggled to keep pace with changing market dynamics, prompting a shift towards more specialized offerings.
The interval fund structure's popularity is likely driven by its ability to balance liquidity needs with the potential for higher returns. This structure may become increasingly relevant as investors navigate uncertain economic conditions. The fund's success could signal a growing appetite for structured credit investments among both retail and institutional investors, potentially leading to increased competition in this space.
“Angel Oak was an early mover on delivering structured credit opportunities in an interval fund. That allows us to be opportunistic in times of volatility while still shielding the Fund from liquidity and redemption risk driven by short-term uncertainty,” said Sreeni Prabhu, Managing Partner and Group Chief Investment Officer for Angel Oak. “We are continuing to see increased interest in ASCIX. In this macroeconomic climate, advisors and institutions seek differentiated fixed-income strategies that align with their risk needs. Angel Oak has an impressive history of offering such strategies.”
The interval fund structure has proven to be a significant advantage during periods of economic fluctuation. Angel Oak’s approach allows the Fund to go further down in credit quality, which results in higher-yielding positions. At a sector level, ASCIX expresses the firm’s best ideas in structured credit with allocations across RMBS, ABS, CLOs, CMBS and corporate debt. The Fund’s strategy includes a distinct overweight to strategic credit assets, offering diversification not typically found in traditional fixed-income funds.
Net Total Returns as of 6/30/24 |
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1-YR |
3-YR |
5-YR |
Since Inception1 |
Angel Oak Strategic Credit Fund (ASCIX) |
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Bloomberg |
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1The inception date of the Angel Oak Strategic Credit Fund Class I (ASCIX) was 12/26/17.
“For more than a decade, investors have been largely under-allocated to key areas of structured credit, but we’re seeing an uptick in interest now as traditional fixed-income assets and passive strategies are struggling to keep up with the changing market dynamics,” said Clayton Triick, CFA, Head of Portfolio Management of Public Strategies at Angel Oak. “We’re really pleased with how the Fund has performed and believe we are well positioned to continue uncovering new opportunities that will drive yield.”
Registered investment advisors and institutional investors have used ASCIX primarily as a diversifier in their fixed-income sleeve while potentially benefiting from the additional yield the Fund seeks to achieve. The interval fund structure provides the flexibility and strategic benefits that enable Angel Oak to hold positions during volatile times while maintaining the liquidity necessary to potentially capitalize on market opportunities as they arise.
To learn more about Angel Oak and its investment solutions, click here.
About Angel Oak Capital Advisors, LLC
Angel Oak is an investment management firm focused on providing compelling fixed-income investment solutions to its clients. Backed by a value-driven approach, Angel Oak 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.
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2Gross and net expense ratios are reported as of the 5/30/24 prospectus.
Definitions:
ABS: Asset-backed security.
CLO: Collateralized loan obligation.
CMBS: Commercial mortgage-backed security.
RMBS: Residential mortgage-backed security.
Performance quoted is past performance and is no guarantee of future results. The investment return and principal value of an investment 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 the performance data shown. Current performance for the most recent month end can be obtained by calling 855-751-4324 or by visiting www.angeloakcapital.com.
Investors should carefully consider the investment objectives, risks, charges and expenses of the funds. This and other important information about the funds is contained in the Prospectus which can be obtained by calling Shareholder Services at 855-751-4324 or from www.angeloakcapital.com. The Prospectus should be read carefully before investing.
Investing involves risk; principal loss is possible. The Strategic Credit Fund is a closed-end Interval Fund. The Fund’s shares will not be listed on an exchange in the foreseeable future, if at all. 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. 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-
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Media:
Trevor Davis, Gregory FCA for Angel Oak Capital Advisors
443-248-0359
trevor@gregoryfca.com
Company:
Randy Chrisman, Chief Marketing and Corporate IR Officer, Angel Oak Capital Advisors
404-953-4969
randy.chrisman@angeloakcapital.com
Source: Angel Oak Capital Advisors LLC
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