1) ANGEL OAK HIGH YIELD OPPORTUNITIES FUND FACT SHEET | DECEMBER 31, 2016
ANHAX | ANHIX | ANHCX
Angel Oak High Yield Opportunities Fund
The High Yield Opportunities Fund seeks to provide current income. Capital appreciation is
a secondary objective. The goal of the Fund is to maximize long-term risk adjusted returns
relative to the market with an emphasis on minimizing downside risk. The Fund is diversified
and invests principally in high-yield corporate bonds rated below investment grade. The
Fund may purchase bonds of any maturity, but will normally have a dollar-weighted average
maturity between two and fifteen years. The Fund is managed against the Bank of America
Merrill Lynch U.S. High Yield Index.
GROWTH OF $10,000 SINCE INCEPTION (AS OF 12/31/2016)
ANHIX
$25,000
Index
1
$19,000
$16,000
$13,000
2011
2012
2013
2014
2015
$10,000
2016
This chart illustrates the performance of a hypothetical $10,000 investment made in Angel Oak High Yield
Opportunities Fund (ANHIX), I Shares since inception on 4/1/09. It assumes reinvestment of capital gains
and dividends. This chart is not intended to imply any future performance.
Annualized
Total Returns (as of 12/31/16) Prior Qtr.
YTD
1 Yr.
3 Yr.
5 Yr.
Inception2
Class I
2.89%
16.31% 16.31%
5.25%
7.07%
10.16%
Class A at NAV
2.84%
15.97% 15.97% 5.00%
6.82%
9.89%
Class A at MOP
0.51%
13.34% 13.34%
4.21%
6.33%
9.57%
Index1
1.88%
17.49% 17.49%
4.72%
7.35%
12.95%
Calendar Year Returns
7777
Category
High Yield Bond
Funds in Category
602
Criteria Risk-Adjusted Return
As of Date
12/31/2016
SHARE CLASSES
$22,000
2010
ANHIX Overall Morningstar Rating™
2016
2015
2014
2013
2012
2011
2010
Class I
16.31%
-1.17%
1.44%
6.66%
13.13%
6.16%
13.33%
Class A at NAV
15.97%
-1.46%
1.30%
6.33%
12.97%
5.90%
13.05%
Index1
17.49%
-4.64%
2.50%
7.42%
15.58%
4.38%
15.19%
Bank of America Merrill Lynch U.S. High Yield Index 2The inception date of the Angel Oak High Yield
Opportunities Fund I Class (ANHIX) was 4/1/09, while the inception date of the A Class (ANHAX) was
7/31/12. The returns of ANHAX shown for periods prior to the inception date include the returns of ANHIX
and are adjusted to reflect any applicable sales charges and the higher annual operating expenses of Class A.
3
Correlation to Index is monthly as of 12/31/2016. See reverse for definition.
1
Current performance may be lower or higher than the performance data quoted. Performance quoted
is past performance and is no guarantee of future results. The investment return and principal value
of an investment in the Fund will fluctuate so that an investor’s shares, when redeemed, may be worth
more or less than their original cost. Returns shown for A Shares at NAV do not reflect the maximum
sales load of 2.25%; if reflected, performance would be lower than shown. Current performance to the
most recent month end can be obtained by calling 855-751-4324.
CUSIP Ticker
A Shares 03463K703
ANHAX
I Shares 03463K885
ANHIX
C Shares 03463K802
ANHCX
FUND INFORMATION
A Shares I Shares
Gross Exp Ratio
*
1.22%
0.97%
Net Exp Ratio*
0.90%
0.65%
SEC Yield subsidized 6.26% 6.58%
SEC Yield unsubsidized 5.86%
6.18%
FUND CHARACTERISTICS
Fund Assets (All Classes) $50.0 Million
Number of Securities
89
Distribution Monthly
Effective Duration
3.7
Maturity Ranges:
Under 3 Years
6.8%
3 to 7 Years
64.2%
7 to 10 Years
26.6%
Over 10 Years
2.4%
Average Coupon
6.8%
Average Yield-to-Worst
6.9%
FUND STATISTICS
(Since Inception)
Fund†
Index1
Std. Deviation
6.1
8.1
Sharpe Ratio
1.7
1.6
Correlation to Index3 0.9 1.0
Positive Months (%)
71.0
74.2
Negative Months (%) 29.0
25.8
†ANHIX
→ Learn more: AngelOakCapital.com
*Gross and net expense ratios are reported as of the 5/31/16 prospectus. The Adviser has contractually agreed to
waive fees through 5/31/18.
Must be preceded or accompanied by a prospectus
2) ANGEL OAK HIGH YIELD OPPORTUNITIES FUND FACT SHEET | DECEMBER 31, 2016
SECTOR BREAKDOWN
CREDIT QUALITY*
BBB
BB
B
CCC
<CCC
Unrated
Cash
Corporate 87.1%
Bonds
1.6%
32.4%
47.6%
11.0%
0.0%
0.5%
6.8%
ANHAX | ANHIX | ANHCX
PORTFOLIO MANAGEMENT TEAM
Matthew Kennedy, CFA®
Portfolio Manager
Head of Corporate Credit
Investment experience since 1995
CLOs
5.9%
Equities
& ETFs
0.1%
Cash
6.9%
Sreeni Prabhu
Co-CEO, Chief Investment Officer
Investment experience since 1998
Fund
Index
Navid Abghari
Portfolio Manager
Investment experience since 2005
*Unrated consists of corporate bonds that do not
have ratings and excludes Equities and ETFs; total
may not equal 100%.
TOP 10 ISSUERS
Fund
TOP 10 SECTORS
BCD Acquisition Inc.
3.8%
Energy
18.4%
15.6%
CVR Partners
3.5%
Basic Industries
15.6%
11.8%
Jefferies Finance LLC
3.4%
Capital Goods
12.5%
5.3%
Frontier Communications
3.1%
Financial Services
8.7%
2.9%
PBF Holding Company, LLC
2.9%
Media
4.3%
11.1%
Kenan Advantage Group
2.7%
Tech & Electronics
4.1%
6.7%
Cheniere Corp
2.6%
Consumer Goods
3.8%
2.4%
Enviva Partners LP
2.4%
Telecommunications
3.7%
10.3%
CSC Holdings LLC
2.3%
Automotive
3.1%
2.0%
Tri Pointe Group
2.3%
Utility
2.6%
2.7%
Fund holdings and sector allocations are as of
12/31/16, are subject to change and are not
recommendations to buy or sell any security.
30-Day SEC Yield: The SEC yield is an annualized
yield based on the most recent 30-day period.
Subsidized yields reflect fee waivers in effect.
Without such waivers, yields would be reduced.
Unsubsidized yields do not reflect waivers in effect.
Average Coupon: Equal to the total interest payments
of an issue divided by bond year dollars.
Bank of America Merrill Lynch U.S. High Yield Index:
Tracks the performance of below investment grade,
but not in default, US dollar denominated corporate
bonds publicly issued in the US domestic market, and
includes issues with a credit rating of BBB or below,
as rated by Moody’s and S&P.
Correlation: A statistical measure of how two
securities move in relation to another. Index used for
comparison is the BofA Merill Lynch U.S. HY Index.
Effective Duration: Measures a portfolio’s sensitivity
to changes in interest rates. Generally, the longer
the effective duration, the greater the price change
relative to interest rate movements.
Sharpe Ratio: A statistical measure that uses
standard deviation and excess return to determine
reward per unit of risk. A higher Sharpe ratio implies
a better historical risk-adjusted performance. The
Sharpe ratio has been calculated since inception
using the 3-month Treasury bill for the risk-free rate
of return.
Standard Deviation: A statistical measure of portfolio
risk used to measure variability of total return
around an average, over a specified period of time.
The greater the standard deviation over the period,
the wider the variability or range of returns and
hence, the greater the fund’s volatility—calculated
since inception.
Yield to Worst (YTW): The lowest potential yield that
can be received on a bond without the issuer actually
defaulting.
It is not possible to invest directly in an index.
Diversification does not guarantee a profit or protect
from loss in a declining market.
The Angel Oak Funds are distributed by Quasar
Distributors, LLC.
The Fund is the successor to the investment
performance of the Predecessor High Yield Fund as
a result of the reorganization of the Predecessor
High Yield Fund into the Fund on April 15, 2016.
Accordingly, the performance information shown
below for periods prior to April 15, 2016 is that of the
Predecessor High Yield Fund’s Institutional Shares
and Original Shares for the Fund’s Institutional Class
and Class A shares, respectively. The Predecessor
High Yield Fund was managed by the same portfolio
managers as the Fund and had substantially the
same investment objectives, policies, and strategies
as the Fund. Effective April 15, 2016, a sales charge
(load) applies to purchases of Class A shares (subject
to the exceptions described in the Prospectus),
and performance of the Class A shares shown prior
to April 15, 2016 has been adjusted to reflect the
applicable sales charges.
James Hentges, CFA®
Portfolio Manager
Investment experience since 1996
Berkin Kologlu
Portfolio Manager
Investment experience since 2002
Johannes Palsson
Portfolio Manager
Investment experience since 2003
FIRM OVERVIEW
• Approximately $5.5 billion in assets
as of 12/31/16
• Oversees investments in U.S. mutual
funds, separate accounts and private
investment partnerships
MUTUAL FUND SALES
Mutual fund investing involves risk; Principal loss
888.685.2915
is possible. Investments in debt securities typically
info@angeloakcapital.com
decreases when interest rates rise. This risk is
usually greater for longer-term debt securities.
Investments in lower rated and non-rated securities
present a greater risk of loss to principal and
interest than higher rated securities. Investments
in asset-backed and mortgage-backed securities include additional risks that investors should be aware of
including credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to
adverse economic developments. Derivatives involve risks different from, and in certain cases, greater than
the risks presented by more traditional investments. Derivatives may involve certain costs and risks such as
illiquidity, interest rate, market, credit, management and the risk that a position could not be closed when
most advantageous. Investing in derivatives could lose more than the amount invested. The Fund may make
short sales of securities, which involves the risk that losses may exceed the original amount invested.
As of 12/31/16, the Angel Oak High Yield Opportunities Fund (ANHIX) received a Morningstar rating of 4 stars
overall, 5 stars for the three-year period & 4 stars for the five-year period among 602, 602 and 477 high yield
bond funds, respectively. For each fund with at least a three-year history, Morningstar calculates a Morningstar
Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly
performance (including the effects of sales charges, loads, and redemption fees), placing more emphasis on
downward variations and rewarding consistent performance. The top 10% of funds in each category receive
5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the
bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated
separately, which may cause slight variations in the distribution percentages.) The Overall Morningstar Rating
for a fund is derived from a weighted average of the performance figures associated with its three-, five- and
ten-year (if applicable) Morningstar Rating metrics. Ratings for other share classes may vary.
© 2016 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to
Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely.
Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use
of this information.
Not FDIC
May Lose
Not Bank
Insured
Value
Guaranteed
Past performance is no guarantee of future results.