Angel Oak Strategic Credit Fund

Last Updated 03/19/2024

Shows hypothetical growth of $1000 since inception

$23.21

Nav Per Share

6.44%

Current Yield

0.00%

Total Return

12/01/2017

Inception

$88,083,451

Total Managed Assets*

ASCIX

Ticker

$50,000

Minimum Investment

0.76%

Net Expense Ratio

*represents total managed funds for the fund complex

About The Fund

The Angel Oak Strategic Credit Fund (the “Fund”) was launched on 12/1/2017 to generate total return by investing in a portfolio of credit-related assets, including corporate debt and preferred securities, residential mortgage-backed securities ("RMBS"), commercial mortgage-backed securities ("CMBS"), collateralized loan obligations ("CLOs"), and residential loans and mortgages.

The Fund underperformed its benchmark, the Bloomberg U.S. Aggregate Bond Index from March 2020 to January 2021, but is now posting a YTD total return of 9.85%, compared to a struggling loss of -1.58% for the index. Perhaps more interestingly, the Fund is paying a current yield of 10.62%, the second-highest current yield out of any interval fund that doesn't constitute a liquidation or any return of capital. The Fund shed about $1m AUM from April through September 2021, and is now sitting at $13.3 million under management.

Angel Oak has offices in Georgia, New York, and Washington State, and specializes in alternative credit with over $21.8 million under management.



From the Fund's Prospectus:


The Angel Oak Strategic Credit Fund is a Delaware statutory trust that is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a diversified, closed-end management investment company.


Investment ObjectiveThe Fund seeks total return.



Principal Investment StrategiesIn pursuing its investment objective, the Fund invests, under normal circumstances, at least 80% of its net assets, plus any borrowings for investment purposes, in credit-related instruments. These credit-related instruments may consist of a broad range of instruments across liquid and illiquid asset classes, including: corporate debt, with a focus on subordinated debt and senior debt 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; and municipal securities. The Fund may invest without limit in below investment grade fixed income instruments, which are commonly referred to as “junk” or “high-yield” instruments and are regarded as speculative with respect to the issuer’s ability to pay interest and repay principal. The fixed income instruments in which the Fund invests may include those of issuers from the United States and other countries. The Fund may also invest in preferred securities. Under normal circumstances, the Fund expects to concentrate its investments (i.e. invest 25% or more of its total assets (measured at the time of investment)) in residential mortgage-backed securities (agency and non-agency) and commercial mortgage-backed securities. For purposes of the Fund’s 80% investment policy, the Fund may also invest in derivative instruments that are linked to, or provide investment exposure to, credit instruments.


Advisor: Angel Oak Capital Advisors, LLC


Administrator: U.S. Bancorp Fund Services, LLC


Distributor: Quasar Distributors, LLC


Custodian: U.S. Bank National Association


Legal Counsel: Dechert LLP


Partner: Douglas P. Dick


Public Accounting Firm: Cohen & Company, LTD.


Transfer Agent: U.S. Bancorp Fund Services, LLC



HISTORICAL DATA

Percentage and dollar changes represent the increase or decrease in the NAV from the preceding trading day.

Regulatory Materials

Prospectus - 5/31/2021 - Angel Oak Strategic Credit Fund

Angel Oak Strategic Credit Fund - Class I

SEC

Annual Report - 2021 - Angel Oak Strategic Credit Fund

Angel Oak Strategic Credit Fund - Class I

SEC

Prospectus - 5/31/2021 - Angel Oak Strategic Credit Fund

Angel Oak Strategic Credit Fund - Class A

SEC

Annual Report - 2021 - Angel Oak Strategic Credit Fund

Angel Oak Strategic Credit Fund - Class A

SEC

Prospectus - 5/31/2021 - Angel Oak Strategic Credit Fund

Angel Oak Strategic Credit Fund - Class U

SEC

1

Date

2021