Angel Oak Capital Advisors Debuts UltraShort ETF Focused on Structured Credit Opportunities

Rhea-AI Summary

Angel Oak Capital Advisors has launched its first ETF, the Angel Oak UltraShort Income ETF (NYSE: UYLD), providing investors with access to short-duration structured credit assets. This ETF aims to deliver higher yields while maintaining credit quality, utilizing a significant allocation to non-agency residential mortgage-backed and asset-backed securities. With over $20 billion in assets under management, Angel Oak seeks to attract both institutional and retail investors by leveraging its decade-long expertise in structured credit.

Positive

• Launch of Angel Oak UltraShort Income ETF expands product offerings.
• Unique access to short-duration structured credit assets enhances investment strategy.
• Strong allocation to non-agency residential mortgage-backed and asset-backed securities improves yield and credit quality.
• Experienced management team with over $20 billion in assets under management.

Negative

• Investments involve risks such as potential principal loss and credit risk.
• Market trading may occur at a premium or discount to NAV, affecting returns.

A leading structured credit investment firm brings new short-duration investment opportunity in first ETF offering

ATLANTA--(BUSINESS WIRE)-- Angel Oak Capital Advisors, an investment management firm that specializes in value-driven structured credit, is excited to announce the launch of the Angel Oak UltraShort Income ETF (NYSE: UYLD). The firm’s first exchange-traded fund, which complements its existing lineup of mutual funds and private strategies, provides investors a unique opportunity to invest in short-duration structured credit assets and cash-like instruments that seek to provide higher yield without sacrificing credit quality.

The actively managed ETF is one of the first in the ultrashort space that will have a sizable allocation to non-agency residential mortgage-backed securities as well as asset-backed securities. This, which drives a differentiated yield and higher credit quality profile, provides ETF investors with a type of strategy that has not existed in the wrapper to date.

“Angel Oak has been a leader in the structured credit investment space for over a decade, and we are excited to bring our unique approach to short-duration structured credit investing to the ETF marketplace,” said Sreeni Prabhu, group CIO and managing partner at Angel Oak Capital Advisors. “In recent history there has rarely been an investment opportunity as strong as what we see in the short-duration space to generate yield with the risk profile we are targeting. We are thrilled to launch this ETF at a pivotal moment for investors seeking such strategies.”

Since 2008, Angel Oak has served as a pioneer for investing in structured credit assets, including non-agency residential mortgage-backed securities, collateralized loan obligations and consumer asset-backed securities. With more than $20 billion in assets under management¹ and an experienced portfolio management team, Angel Oak believes its bottom-up approach to uncovering yield in the short-duration space will drive institutional and retail dollar flows alike.

To support Angel Oak’s advancement into the ETF industry, the firm added Ward Bortz in June to serve as head of ETFs. Bortz previously served as head of strategy for fixed-income factors at Invesco US.

“Joining Angel Oak and spearheading the launch of the UltraShort Income ETF was an enticing opportunity because of the firm’s dedicated approach to structured credit assets and the chance to bring a new product to market that we’ve heard investors ask for,” said Bortz. “We look forward to the success of UYLD and growing Angel Oak’s ETF offerings in the future.”

To learn more about the Fund and Angel Oak, please visit angeloakcapital.com.

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.

¹Estimated as of 9/30/22. Assets under management represents the sum of assets managed or serviced, and committed but uncalled capital.

Investors should carefully consider the investment objectives, risks, charges and expenses of the Fund. This and other important information about the Fund is contained in the Prospectus which can be obtained by calling Shareholder Services or from www.angeloakcapital.com. The Prospectus should be read carefully before investing.

Investing involves risk; principal loss is possible. Investments in debt securities typically decrease when interest rates rise. This risk is usually greater for longer-term debt securities. Investments in lower-rated and nonrated securities present a greater risk of loss to principal and interest than higher-rated securities do. Investments in asset-backed and mortgage-backed securities include additional risks that investors should be aware of, including credit risk, prepayment risk, possible illiquidity, and default, as well as increased susceptibility to adverse economic developments. Derivatives involve risks different from—and in certain cases, greater than—the risks presented by more traditional investments. Derivatives may involve certain costs and risks such as illiquidity, interest rate, market, credit, management, and the risk that a position could not be closed when most advantageous. Investing in derivatives could lead to losses that are greater than the 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 or higher and duplicative expenses when it invests in mutual funds, ETFs, and other investment companies. For more information on these risks and other risks of the Fund, please see the Prospectus.

ETFs may trade at a premium or discount to NAV. Shares of any ETF are bought and sold at market prices (not NAV) and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. The Fund is an actively managed ETF, which is a fund that trades like other publicly-traded securities. The Fund is not an index fund and does not seek to replicate the performance of a specified index.

The Angel Oak Funds are distributed by Quasar Distributors, LLC.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221025005348/en/

Media:

Trevor Davis, Gregory FCA for Angel Oak Capital Advisors

443-248-0359

trevor@gregoryfca.com



Company:

Randy Chrisman, Chief Marketing & Corporate IR Officer, Angel Oak Capital Advisors

404-953-4969

randy.chrisman@angeloakcapital.com

Source: Angel Oak Capital Advisors, LLC

FAQ

What is the Angel Oak UltraShort Income ETF (UYLD)?

The Angel Oak UltraShort Income ETF (NYSE: UYLD) is an ETF launched by Angel Oak Capital Advisors focusing on short-duration structured credit assets.

When was the Angel Oak UltraShort Income ETF launched?

The Angel Oak UltraShort Income ETF was launched as part of a recent announcement by Angel Oak Capital Advisors.

What are the investment strategies of the UYLD ETF?

The UYLD ETF aims to provide higher yields by investing in a significant allocation of non-agency residential mortgage-backed and asset-backed securities.

What are the risks associated with investing in UYLD?

Investing in UYLD involves risks such as principal loss, credit risk, and potential trading at a premium or discount to NAV.

Who is managing the Angel Oak UltraShort Income ETF?

The ETF is managed by the experienced portfolio management team at Angel Oak Capital Advisors, which has over a decade of expertise in structured credit investing.