Angel Oak Strategic Credit Fund Breaks $100M Asset Mark as Investors Turn to Interval Fund Structure

Angel Oak Capital Advisors LLC, a leading structured credit investment management firm, announced today that the Angel Oak Strategic Credit Fund (ASCIX or the Fund) 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 — a span that has included periods of volatile investment environments.

“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	Year-to-date	1-YR	3-YR	5-YR	Since Inception1
Angel Oak Strategic Credit Fund (ASCIX)	6.38%	12.93%	7.79%	6.73%	6.57%
Bloomberg U.S. Aggregate Bond Index	-0.71%	2.63%	-3.02%	-0.23%	0.80%

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.”