Angel Oak Capital Advisors, a US-based investment management firm specialising in structured credit, is celebrating the five-year anniversary of the MontLake Angel Oak Multi-Strategy Income UCITS Fund. The Fund, which provides investors with exposure to US non-agency residential mortgage-backed securities (RMBS) and other structured credit assets, achieved an annualised return of 4.09 per cent as of 4 December, 2020, with approximately USD965 million in assets under management.
“Another core component that has helped the Fund is Angel Oak’s reputation and expertise in the US residential mortgage market. They’ve established themselves as one of the preeminent teams in this space, and these factors have helped deliver an exceptional five years for the Fund.”
Launched in December 2015, the Fund acts as the UCITS counterpart to Angel Oak’s US flagship mutual fund. It has generated strong demand in 2020, with positive net inflows of approximately USD200 million. Angel Oak made the decision to expand its distribution efforts beyond the US for the Fund and other Angel Oak strategies by establishing a strategic partnership with Bury Street Capital earlier this year.
“Global investors are realising the resilient story of the US housing market as the sector exhibits strong fundamentals and attractive yields,” says Sam Dunlap, portfolio manager and CIO of public strategies at Angel Oak Capital Advisors. “We continue to see positive numbers coming out of the US housing market and expect this momentum to continue well into 2021. This area can be especially appealing from a yield perspective when compared to the broader fixed-income universe.”
“Institutional investors are finding that the MontLake Angel Oak Multi-Strategy Income UCITS Fund complements the income or alternative sleeve of their portfolio, but also acts as a diversifier due to its low correlation to traditional fixed-income assets,” says Robert Drake, managing director at Bury Street Capital. “Another core component that has helped the Fund is Angel Oak’s reputation and expertise in the US residential mortgage market. They’ve established themselves as one of the preeminent teams in this space, and these factors have helped deliver an exceptional five years for the Fund.”
Combining a top-down and bottom-up analytical approach, the portfolio management team at Angel Oak aims to target the best relative value in US structured credit to potentially deliver strong risk-adjusted returns over the full credit cycle. Angel Oak’s team sees strong tailwinds for the sectors that the Fund invests in, especially non-agency RMBS. The Fund also maintains a low duration component relative to its benchmark, which the team views as another potential advantage in the post-Covid-19
