1) ANGEL OAK FLEXIBLE INCOME FUND FACT SHEET | DECEMBER 31, 2016
ANFLX | ANFIX | AFLCX
Angel Oak Flexible Income Fund
The Fund seeks to generate income and total return. It takes a distinct approach to credit
investing, actively allocating across higher-yielding global fixed income instruments that may
not be as sensitive to changes in interest rates. The flexible nature of the Fund provides the
portfolio managers with the freedom to invest in securities outside of indices, lowering the
expected correlation to traditional fixed income. Key features of the Fund’s investment strategy
include:
•
•
•
•
Flexibility to shift among a broad range of fixed income sectors
High income potential in all markets
Designed to deliver the potential for superior risk-adjusted total returns
Significant allocation to corporate credit with an emphasis in structured credit
$11,000
Index1
CUSIP Ticker
A Shares 03463K109
ANFLX
I Shares 03463K208
ANFIX
C Shares 03463K604
AFLCX
FUND INFORMATION
GROWTH OF $10,000 SINCE INCEPTION (AS OF 12/31/2016)
ANFIX
SHARE CLASSES
$10,500
A Shares I Shares
Gross Exp Ratio
*
1.49%
1.28%
Net Exp Ratio*
0.94%
0.69%
SEC Yield Subsidized 4.23% 4.57%
SEC Yield Unsubsidized 3.88%
4.21%
Represent 30-day SEC yields
FUND CHARACTERISTICS
$10,000
$9,500
Nov 14 Dec 14 Mar 15
Jun 15 Sep 15
Dec 15
Mar 16 Jun 16 Sep 16 Dec 16$9,000
This chart illustrates the performance of a hypothetical $10,000 investment made in Angel Oak Flexible
Income Fund (ANFIX), I Shares since inception on 11/3/14. It assumes reinvestment of capital gains and
dividends. This chart is not intended to imply any future performance.
Total Returns (as of 12/31/2016)
Prior Qtr.
YTD
1 Year
Inception2
Class I
1.45%
-0.34%
-0.34%
1.73%
Class A at NAV
1.46%
-0.57%
-0.57%
1.51%
Class A at MOP3
-0.87%
-2.83%
-2.83%
0.44%
Index1
-2.98%
2.65%
2.65%
1.88%
Fund Assets (All Classes) $180.7 Million
Number of Securities
81
Distribution Monthly
Effective Duration
1.6
Average Price (Portfolio)
$99.5
FUND STATISTICS
(Since Inception)
Fund†
Index1
Std. Deviation
5.1
4.1
Sharpe Ratio
0.5
0.6
Correlation to Index4 0.0 1.0
Positive Months (%)
68.0
56.0
Negative Months (%) 32.0
44.0
†ANFIX
→ Learn more: AngelOakCapital.com
Bloomberg Barclays U.S. Aggregate Bond Index
The inception date of both the Angel Oak Flexible Income Fund A and I Class (ANFLX and ANFIX) was November 3, 2014.
Maximum Offering Price takes into account the 2.25% maximum initial sales charge.
4
Correlation to Index is daily as of 12/31/2016. See reverse for definition.
1
2
3
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.
*Gross expense ratios are reported as of the 5/31/16 prospectus. The net expense ratios are reported as of the 1/31/16 Annual Report and are referenced in the 5/31/16
prospectus. The Adviser has contractually agreed to waive fees through 5/31/17. Effective December 1, 2016, the Adviser also has voluntarily agreed to waive its fees
and/or reimburse certain expenses. This voluntary waiver is in addition to the contractual fee waiver/expense limitation agreement discussed above and may be discontinued at any time.
2) ANGEL OAK FLEXIBLE INCOME FUND FACT SHEET | DECEMBER 31, 2016
SECTOR BREAKDOWN
ANFLX | ANFIX | AFLCX
CREDIT TYPE
FIRM OVERVIEW
• Angel Oak Capital Advisors, LLC,
registered investment adviser,
established in 2009
• Approximately $5.5 billion in assets
as of 12/31/16
• Oversees investments in U.S. mutual
funds, separate accounts and private
investment partnerships
PORTFOLIO MANAGEMENT TEAM
Corporates
CLO
CMBS
Non-Agency RMBS
Cash + Other
51.8%
33.8%
10.3%
0.3%
3.8%
Corporate Credit
Mortgage Credit
Cash + Other
85.6%
10.6%
3.8%
Fund holdings and sector allocations are subject
to change and are not a recommendation 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 fee waivers in effect.
Average Price: The weighted average of the prices of the Fund’s portfolio holdings.
Bloomberg Barclays U.S. Aggregate Bond Index: An unmanaged index that measures the performance of
the investment-grade universe of bonds issued in the United States. The index includes institutionally
traded U.S. Treasury, government sponsored, mortgage and corporate securities. Please note that an
investor cannot invest directly in the index; therefore its performance does not reflect a reduction for fees
or expenses incurred in managing a portfolio.
Correlation: A statistical measure of how two securities move in relation to another. Index used for
comparison is the Bloomberg Barclays Aggregate Bond 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. The standard deviation
has been calculated since inception.
The fund’s investment objectives, risks, charges and expenses must be considered carefully before
investing. The statutory and summary prospectuses contain this and other important information
about the investment company, and it may be obtained by calling 855-751-4324, or visiting
www.angeloakcapital.com. Read it carefully before investing.
Brad Friedlander
Head Portfolio Manager
Investment experience since 1999
Sreeni Prabhu
Co-CEO, Chief Investment Officer
Investment experience since 1998
Navid Abghari
Portfolio Manager
Investment experience since 2005
Sam Dunlap
Portfolio Manager
Investment experience since 2002
Johannes Palsson
Portfolio Manager
Investment experience since 2003
Clayton Triick, CFA®
Portfolio Manager
Investment experience since 2008
MUTUAL FUND SALES
Mutual fund investing involves risk. Principal loss is possible. The Fund can make short sales of securities,
which involves the risk that losses in securities may exceed the original amount invested. The Fund may
use leverage, which may exaggerate the effect of any increase or decrease in the value of securities in
888.685.2915
the Fund’s portfolio on the Fund’s Net Asset Value and therefore may increase the volatility of the Fund.
Investments in foreign securities involve greater volatility and political, economic and currency risks and
info@angeloakcapital.com
differences in accounting methods. These risks are increased for emerging markets. Investments in fixed
income instruments typically decrease in value when interest rates rise. Derivatives involve risks different
from and, in certain cases, greater than the risks presented by more traditional investments. Investments
in asset-backed and mortgage-backed securities include additional risks that investors should be aware
of, such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility
to adverse economic developments. Investment by the Fund in lower-rated and non-rated securities presents a greater risk of loss to principal and interest than
higher-rated securities. The Fund is non-diversified, so it may be more susceptible to being adversely affected by a single corporate, economic, political or regulatory
occurrence than a diversified fund. The Fund will incur higher and duplicative costs when it invests in mutual funds, ETFs and other investment companies. There is also
the risk that the Fund may suffer losses due to the investment practices of the underlying funds. For more information on these risks and other risks of the Fund, please
see the Prospectus. No investment strategy, including a total return strategy, can ensure a profit or protect against loss. Additionally, investing in a total return strategy
may result in underperformance during a bull market.
Distributed by Quasar Distributors, LLC (Member FINRA)
Not FDIC Insured
May Lose Value
Not Bank Guaranteed