Angel Oak Financial Strategies Income Term Trust Files Presentation Showcasing the New Investment Advisory Agreement
Underscores That the New Agreement Continues the Strategy, Management, and Competitive Fee Structure of the Existing Agreement
Highlights That the New Agreement Enables the Fund to Leverage Brookfield鈥檚 Global Scale and Resources and Deliver Enhanced Value for All Shareholders
Encourages Shareholders to Vote 鈥�FOR鈥� All Ballot Items
The Fund鈥檚 Board of Trustees (the 鈥淏oard鈥�) recommends that shareholders vote 鈥�FOR鈥� the approval of the Fund鈥檚 new investment advisory agreement (the 鈥淣ew Agreement鈥�), which is substantially identical to the current investment advisory agreement.
Key Points of the Presentation:
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Shareholders are expected to benefit from the combination of Brookfield Asset Management Ltd.鈥檚 (鈥淏rookfield鈥�) scale and Angel Oak Capital Advisors, LLC鈥檚 (the 鈥淎dviser鈥�) specialization in high-yield, investment-grade opportunities in the community banking sector.
- While the Adviser will continue to operate independently under its existing leadership and investment processes, Brookfield鈥檚 scale and financial strength are expected to enhance the Adviser鈥檚 resources.
- The New Agreement is expected to deliver benefits to all shareholders through the Adviser鈥檚 improved market access, balance sheet support, and potential synergies and collaboration between the Adviser and Brookfield.
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Shareholder approval of the New Agreement is essential to the Fund鈥檚 efforts to help investors achieve their long-term financial goals.
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As of August 31, 2025, the Fund has outperformed its benchmark 鈥� the Bloomberg
U.S. Aggregate Bond Index 鈥� over the 1-, 3-, and 5-year periods, as well as year to date and since inception.1 -
An investment at the Fund鈥檚 initial net asset value (鈥淣AV鈥�) of
$20 $24.07 $21.54 -
The Board has taken steps to improve the Fund鈥檚 trading discount to NAV, including increasing the distribution rate and growing the Fund to increase liquidity and trading volumes 鈥� as a result, the discount has narrowed to
3.9% as of August 31, 2025, which is one of the best in the Fund鈥檚 peer group.3 - The Fund intends to maintain its level distribution policy at the new, higher distribution rate announced for August 2025.
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As of August 31, 2025, the Fund has outperformed its benchmark 鈥� the Bloomberg
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The Board is committed to acting in the best interest of all shareholders.
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A majority of the Board is independent from the Adviser, empowering the Board to provide objective oversight of management.
- Current interested trustee Clayton Triick will resign from the Board before the Brookfield transaction closes, which will further strengthen the Board鈥檚 independence from the Adviser.
- The Board unanimously approved the New Agreement, and prior to voting on the New Agreement, the independent trustees reviewed it with independent legal counsel.
- The Board values investor feedback and is dedicated to continuing open engagement with all shareholders.
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A majority of the Board is independent from the Adviser, empowering the Board to provide objective oversight of management.
HOW TO VOTE
Shareholders of record as of August 20, 2025, are entitled to vote at the Special Meeting. The Board recommends that shareholders vote 鈥�FOR鈥� Proposal 1, which is the proposal to approve the New Agreement, and vote 鈥�FOR鈥� Proposal 2, which is the proposal to approve any adjournments of the Special Meeting, if necessary or appropriate, for the purpose of soliciting additional proxies. 鈥婼hareholders should promptly vote their shares 鈥�FOR鈥� both proposals by following the instructions provided in their proxy materials, whether by internet, telephone, or mail.
If you have any questions or need assistance voting your shares, please contact the Fund鈥檚 proxy solicitor, EQ Fund Solutions, LLC, at 800-581-3783.
ABOUT FINS
Led by Angel Oak鈥檚 experienced financial services team, the Fund invests predominantly in
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.
On April 1, 2025, Angel Oak Companies, LP, the parent of Angel Oak Asset Management Holdings, LLC, itself the parent of the Adviser, announced that it signed a definitive agreement pursuant to which Brookfield will acquire a majority interest in Angel Oak Companies, LP and its subsidiaries, including the Adviser (the 鈥淭ransaction鈥�). The closing of the Transaction is expected to be completed by September 30, 2025. The Transaction is not expected to result in any material change in the day-to-day management and operations of the Fund or any increase in fees. However, the closing of the Transaction is subject to certain conditions, and there can be no assurance that the Transaction will be completed as planned, or that the necessary conditions will be satisfied. If successful, the closing of the Transaction would be deemed to be a change of 鈥渃ontrol鈥� of Angel Oak Companies, LP and its subsidiaries (collectively, the 鈥淎ngel Oak Companies鈥�) under the Investment Company Act of 1940, and deemed an 鈥渁ssignment鈥� of the Fund鈥檚 investment advisory agreement (the 鈥淓xisting Advisory Agreement鈥�), which would result in the automatic termination of the Existing Advisory Agreement. However, following the closing of the Transaction, the existing management team of the Angel Oak Companies will continue to independently manage the day-to-day business of the Angel Oak Companies and the Adviser, and will control the boards of directors of the Angel Oak Companies.
Information regarding the Fund and the Adviser can be found at .
Past performance is neither indicative nor a guarantee of future results. Investors should carefully consider the Fund鈥檚 investment objective and policies, risk considerations, charges and ongoing expenses of an investment before investing. For more information, please contact your investment representative or EQ Fund Solutions, LLC, the Fund鈥檚 proxy solicitor, at 800-581-3783.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
Certain statements contained in this release constitute forward-looking statements. Forward-looking statements can be identified by the words 鈥渕ay,鈥� 鈥渨ill,鈥� 鈥渋ntend,鈥� 鈥渆xpect,鈥� 鈥渃ontinue,鈥� 鈥減lan,鈥� and similar terms and the negative of such terms. These statements involve known and unknown risks, uncertainties and other factors that may cause the Fund鈥檚 actual results or level of performance to be materially different from any future results or level of performance expressed or implied by such forward-looking statements. Such risks, uncertainties and other factors that could materially affect the Fund鈥檚 actual results include, among others, the performance of the portfolio of securities the Fund holds, the price at which the Fund鈥檚 securities trade in the public markets and other factors discussed in the Fund鈥檚 periodic filings with the
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| 1 Source: Total return is based on market price and is from Bloomberg. Figures are cumulative. | |
| 2 Source: Total return is based on NAV and is from Morningstar. Morningstar鈥檚 calculation divides the change in the Fund鈥檚 NAV, assuming the reinvestment of all income and capital gains distributions (on the actual reinvestment date used by the Fund) during the period, by the initial NAV. Data as of 8/31/2025. | |
| 3 Source: Bloomberg and Fund filings. Data as of 8/31/2025. | |
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View source version on businesswire.com:
Media:
Trevor Davis, Gregory FCA for Angel Oak Capital Advisors
443-248-0359
[email protected]
Company Contact:
Randy Chrisman, Chief Marketing & Corporate IR Officer, Angel Oak Capital Advisors
404-953-4969
[email protected]
Source: Angel Oak Capital Advisors
