Angel Oak’s UCITS Mortgage Credit Fund Crosses $150 Million in Assets
Angel Oak Capital Advisors LLC has announced that its MontLake Angel Oak Multi-Strategy Income UCITS Fund (the Fund) has surpassed $150 million USD in assets under management (AUM) and returned 7.12 perecent as of Aug. 31 since its inception on Dec. 4, 2015.
Angel Oak Capital’s decision to bring its mortgage and structured credit expertise to the European UCITS marketplace was predicated on years of robust demand for the firm’s investment offering in the U.S. The UCITS fund’s asset allocation closely mirrors the firm’s U.S. mutual fund, the Angel Oak Multi-Strategy Income Fund, by also investing in non-agency residential mortgage-backed securities (RMBS) and other structured credit. Over the past five years, the firm’s U.S. mutual fund has grown to over $4 billion USD in AUM.
“The fast growth of the UCITS fund over a short period of time and in a difficult market environment is a strong indication of European investors’ interest in gaining exposure to the U.S. non-agency RMBS market,” said Sreeni Prabhu, the firm’s CIO and head portfolio manager. “We are seeing European institutional investors, wealth managers, family offices and fund of funds clients wanting to diversify away from investment grade corporate credits and government bonds. We believe the Fund may offer a better relative value with potentially more attractive yields and a shorter duration through a concentration of floating-rate securities, making it a unique offering in the European market.”
Today, the Fund’s current portfolio allocation includes non-agency RMBS, commercial mortgage-backed securities (CMBS), collateralized loan obligations (CLOs) and U.S. Agency RMBS. However, the portfolio management team may decide to move in and out of other structured credit and corporate credit asset classes based on their assessment of the best relative values in fixed-income.
“With interest rates at all-time lows and yields suppressed in most traditional fixed income asset classes, our goal as an opportunistic, fixed income asset manager is to provide investors with alternative solutions,” said Prabhu. “We are proud of the Fund’s early performance thus far in Europe and will continue to look for new ways to expand on our mortgage credit expertise to new investors.”
Angel Oak Capital selected the MontLake UCITS platform to host their UCITS fund and Bury Street Capital as its marketer. The Fund is available in several currencies providing a wide base of access for investors interested in the product.
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