Angel Oak Financial Strategies Income Term Trust Reports Announcement by Angel Oak Companies, LP of Acquisition Transaction
MWN-AI** Summary
Angel Oak Financial Strategies Income Term Trust (NYSE: FINS) recently announced that its parent company, Angel Oak Companies, LP, has entered into a strategic partnership with Brookfield Asset Management Ltd., which is set to acquire a majority stake in Angel Oak Companies. The transaction, anticipated to close by September 30, 2025, is expected to be seamless in terms of day-to-day management, although its completion is contingent upon specific conditions being met, and there are no guarantees that these will be fulfilled.
The acquisition triggers a Change of Control at Angel Oak, leading to the automatic termination of the existing investment advisory agreement between Angel Oak and the Fund, as mandated by the Investment Company Act of 1940. As a response, the Fund’s Board of Trustees is scheduled to evaluate and potentially approve a new investment advisory agreement, which is expected to mirror the terms of the existing agreement, including advisory fees, without altering the Fund’s investment objectives or strategies.
Shareholders will subsequently be called to a Special Shareholder Meeting to vote on the proposed New Advisory Agreement. Detailed information regarding the Change of Control and the proposal will be included in an upcoming proxy statement, encouraging shareholders to review it carefully and vote to minimize any unwanted expenses for the Fund.
The Fund, FINS, predominantly invests in U.S. financial sector debt while maintaining a focus on producing risk-adjusted returns through fixed-income investments. Angel Oak Capital Advisors, which manages the Fund, is committed to delivering stable income through their specialized investment strategies, primarily in mortgage-backed securities and structured credit.
For thorough insights and updates, stakeholders are advised to review the forthcoming materials and contact their investment representatives if necessary.
MWN-AI** Analysis
The recent announcement by Angel Oak Companies, LP regarding its strategic partnership with Brookfield Asset Management Ltd. has significant implications for investors in the Angel Oak Financial Strategies Income Term Trust (NYSE: FINS). This acquisition, set to close by September 30, 2025, will lead to a change in control and an automatic termination of the existing investment advisory agreement due to the provisions under the Investment Company Act of 1940.
The prospective transition may introduce uncertainty, although it is noted that the day-to-day management and investment strategies of the Fund are not anticipated to change materially. The Board of Trustees will be tasked with approving a new investment advisory agreement, which is expected to mirror the existing terms largely, ensuring consistency in the Fund’s management philosophy and financial objectives.
Investors should monitor the Special Shareholder Meeting closely, as approval of the new advisory agreement will be pivotal for continuity. The Fund's strategy centers on U.S. financial sector debt and equity, with a significant emphasis on investment-grade quality assets, which may mitigate potential risks during this transition period. Given that Brookfield is a major player in asset management, this partnership could enhance operational efficiencies and broaden investment opportunities for FINS, assuming the acquisition goes through as planned.
However, the uncertainty surrounding the transaction and the requisite regulatory approvals cannot be overlooked. Therefore, it might be prudent for investors to approach investments in FINS with caution, potentially waiting for more clarity post-transaction closure. As always, evaluating the fund's overall performance, portfolio allocation, and risk outlook is essential before making further investment decisions.
**MWN-AI Summary and Analysis is based on asking OpenAI to summarize and analyze this news release.
Angel Oak Financial Strategies Income Term Trust (NYSE: FINS) (the “Fund”) today reported that Angel Oak Companies, LP, the parent of Angel Oak Asset Management Holdings, LLC, itself the parent of Angel Oak Capital Advisors, LLC (“Angel Oak”), the investment adviser of the Fund, announced a strategic partnership with Brookfield Asset Management Ltd. (“Brookfield”) in which Brookfield has agreed to acquire a majority of Angel Oak Companies, LP (the “Transaction”). 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 of the Fund. 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 will result in a change of control of Angel Oak (the “Change of Control”). Consistent with applicable requirements under the Investment Company Act of 1940, as amended (the “1940 Act”), the current investment advisory agreement between Angel Oak and the Fund (the “Existing Advisory Agreement”), contains a provision that the Existing Advisory Agreement will automatically terminate in the event of an “assignment” (as defined in the 1940 Act). The Change of Control will cause an assignment of the Existing Advisory Agreement and will result in the automatic termination of the Existing Advisory Agreement.
At a meeting to be held prior to the anticipated closing of the Transaction, the Board of Trustees (the “Board”) of the Fund will consider the approval of a new investment advisory agreement between Angel Oak and the Fund (the “New Advisory Agreement”). If approved by the Board, the New Advisory Agreement would also need to be approved by shareholders of the Fund at a special meeting of shareholders (the “Special Shareholder Meeting”), at which the Fund’s shareholders will be asked to consider the approval of the New Advisory Agreement. The New Advisory Agreement is expected to have the same advisory fee and substantially similar terms and conditions to the Existing Advisory Agreement. The New Advisory Agreement will not result in any material changes to the Fund’s investment objective and principal investment strategies.
More detailed information about the Change of Control and the proposal to be voted on at the Special Shareholder Meeting will be provided in a forthcoming proxy statement. When you receive your proxy statement, please review it carefully and cast your vote to avoid the additional expense to the Fund of any future solicitations. This Supplement is not a proxy and is not soliciting any proxy, which can only be done by means of a proxy statement.
About FINS
Led by Angel Oak’s experienced financial services team, FINS invests predominantly in U.S. financial sector debt as well as selective opportunities across financial sector preferred and common equity. Under normal circumstances, at least 50% of FINS’ portfolio is publicly rated investment grade or, if unrated, judged to be of investment grade quality by Angel Oak.
About Angel Oak Capital Advisors, LLC
Angel Oak Capital Advisors is an investment management firm focused on providing compelling fixed-income investment solutions to its clients. Backed by a value-driven approach, Angel Oak Capital Advisors 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.
Information regarding the Fund and Angel Oak Capital Advisors can be found at www.angeloakcapital.com .
For additional information regarding the fees and expenses associated with an investment in shares of the Fund, see the prospectus supplement and accompanying prospectus when available.
Past performance is neither indicative nor a guarantee of future results. Investors should read the prospectus supplement and accompanying prospectus, when available, and consider the investment objectives and policies, risk considerations, charges and ongoing expenses of an investment carefully before investing. For more information, please contact your investment representative or EQ Fund Solutions at 866-751-6314.
Cautionary note regarding forward-looking statements
Certain statements contained herein constitute forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause the Fund’s 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 factors include, among others, those listed in the prospectus supplement and accompany the prospectus when available. As a result of these and other factors, the Fund cannot give you any assurances as to its future results or level of performance, and neither the Fund nor any other person assumes responsibility for the accuracy and completeness of such statements. The Fund undertakes no obligation to publicly update or revise any forward-looking statements made herein.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250401259056/en/
Media:
Trevor Davis, Gregory FCA for Angel Oak Capital Advisors
443-248-0359
trevor@gregoryfca.com
Company Contact:
Randy Chrisman, Chief Marketing and Corporate IR Officer, Angel Oak Capital Advisors
404-953-4969
randy.chrisman@angeloakcapital.com
FAQ**
How will the Change of Control impact the investment strategy of the Angel Oak Financial Strategies Income Term Trust of Beneficial Interest FINS, and what assurances can you provide about continuity in management after the partnership with Brookfield?
Given that the existing advisory agreement for the Angel Oak Financial Strategies Income Term Trust of Beneficial Interest FINS will terminate upon the Transaction, what measures are in place to ensure a smooth transition to the New Advisory Agreement?
What specific criteria will the Board of Trustees evaluate when considering the approval of the New Advisory Agreement for the Angel Oak Financial Strategies Income Term Trust of Beneficial Interest FINS, and how might this affect shareholder interests?
Can you detail the potential risks and uncertainties that could arise from the pending acquisition of Angel Oak Companies, LP by Brookfield and how these may impact investor confidence in the Angel Oak Financial Strategies Income Term Trust of Beneficial Interest FINS?
**MWN-AI FAQ is based on asking OpenAI questions about Angel Oak Financial Strategies Income Term Trust of Beneficial Interest (NYSE: FINS).
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