AOIIX — Angel Oak Total Return Bond Fund
Data updated: 2024-04-09
AOIIX — Angel Oak Total Return Bond Fund. Long Securitized (MBS/ABS/CMBS) Bond · $30.92M AUM. Holdings, fees, performance and SEC filings.
AOIIX Fund Overview
AOIIX — Angel Oak Total Return Bond Fund is a US mutual fund managed by Angel Oak Funds Trust, categorised as Long Securitized (MBS/ABS/CMBS) Bond. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.
- Type: US mutual fund
- Manager: Angel Oak Funds Trust
- Category: Long Securitized (MBS/ABS/CMBS) Bond
- Assets under management: $30.92M
- 1-year return: 2.2%
- Ticker: AOIIX
- SEC CIK: 0001612930
- SEC series ID: S000071994
- Share class ID: C000227646
AOIIX Investment Objective and Strategy
Angel Oak Total Return Bond Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Angel Oak Funds Trust.
Investment objective
The Angel Oak Total Return Bond Fund (the Fund) seeks total return.
Principal investment strategy
The Fund will, under normal circumstances, invest at least 80% of its net assets, plus the amount of any borrowings for investment purposes, in bonds. For purposes of this 80% investment policy, the Adviser will select the Funds investments in bonds from a broad range of instruments across various asset classes, including: agency and non-agency residential mortgage-backed securities (RMBS); commercial mortgage-backed securities (CMBS); collateralized loan obligations (CLOs), collateralized debt obligations (CDOs), collateralized mortgage obligations (CMOs), collateralized bond obligations (CBOs), asset-backed securities (ABS), including securities or securitizations backed by assets such as credit card receivables, student loans, automobile loans, and residential and commercial real estate, and other debt securitizations (collectively, Structured Products); mortgage loans, secured and unsecured consumer loans, commercial loans and pools of such loans (collectively, Loans); corporate debt, including bank-issued subordinated debt (which includes subordinated debt issued by community banks); municipal securities; U.S.
Treasury and U.S. government agency securities; and derivative instruments that invest substantially all of their assets in, are linked to, or otherwise provide investment exposure to, bonds. The Fund may invest in the securities of other investment companies, including closed-end investment companies and open-end investment companies, which may operate as traditional mutual funds, exchange-traded funds (ETFs) or business development companies (BDCs). The other investment companies in which the Fund invests may be part of the same group of investment companies as the Fund. The Fund will concentrate its investments in agency and non-agency RMBS and CMBS and mortgage loans (Mortgage Related Instruments). This means that, under normal circumstances, the Fund will invest more than 25% of its assets in Mortgage Related Instruments (measured at the time of purchase).
The Fund will not concentrate its investments in any other group of industries. The Funds policy to concentrate its investments in Mortgage Related Instruments is fundamental and may not be changed without shareholder approval. The Fund is a non-diversified portfolio under the Investment Company Act of 1940 (the 1940 Act), meaning it may invest a greater percentage of its assets in a single or limited number of issuers than a diversified fund. The fixed income instruments in which the Fund invests may include those of issuers from the United States and other countries, without limitation. The Funds investments in foreign debt securities will typically be denominated in U.S. dollars. The Fund may invest up to 15% of its net assets in investments that are deemed to be illiquid, which may include private placements, certain Rule 144A securities (which are subject to resale restrictions), and securities of issuers that are bankrupt or in default.
The Fund may invest, without limitation, in securities of any maturity and duration. Under normal market conditions, the Funds target portfolio duration is two to eight years, and the target weighted average maturity of the Funds portfolio is two to fifteen years. Maturity refers to the length of time until a debt securitys principal is repaid with interest. Duration is a measure used to determine the sensitivity of a securitys price to changes in interest rates. Duration incorporates a securitys yield, coupon, final maturity, call and put features, and prepayment exposure into one measure with a higher duration indicating greater sensitivity to interest rates. For example, if a portfolio has a duration of two years, and interest rates increase (fall) by 1%, the portfolio would decline (increase) in value by approximately 2%.
However, duration may not accurately reflect the true interest rate sensitivity of instruments held by the Fund and, therefore the Funds exposure to changes in interest rates. The Fund may invest, without limitation, in securities of any quality and maturity, including high-yield securities (also known as junk bonds), and securities that are not rated by any rating agencies. Under normal market conditions, the Fund will not invest more than 30% of its total assets in high-yield securities. These high-yield securities will be rated BB+ or lower by Standard & Poors Rating Group (S&P) or will be of equivalent quality rating from another Nationally Recognized Statistical Ratings Organization. If a bond is unrated, the Adviser may determine whether it is of comparable quality and therefore eligible for the Funds investment.
In pursuing its investment objective or for hedging purposes, the Fund may utilize borrowing and various types of derivative instruments, including swaps, futures contracts, and options, although not all such derivatives will be used at all times. Such derivatives may trade over-the-counter or on an exchange and may principally be used for one or more of the following purposes: speculation, currency hedging, duration management, credit deterioration hedging, hedges against broad market movements, or to pursue the Funds investment objective. The Fund may borrow to the maximum extent permitted by applicable law. The Fund may also invest in repurchase agreements and borrow through reverse repurchase agreements. The Funds allocation of its assets into various asset classes within its investment strategy will depend on the views of the Adviser as to the best value relative to what is currently presented in the marketplace.
Investment decisions are made based on fundamental research and analysis to identify issuers with the ability to improve their credit profile over time with attractive valuations, resulting in both income and potential capital appreciation. In selecting investments, including Structured Products, the Adviser may consider maturity, yield and ratings information and opportunities for price appreciation among other criteria. The Adviser also analyzes a variety of factors when selecting investments for the Fund, such as collateral quality, credit support, structure and market conditions. The Adviser attempts to diversify risks that arise from position sizes, geography, ratings, duration, deal structure and collateral values. The Adviser seeks to limit risk of principal by targeting assets that it considers undervalued.
As part of its investment process, the Adviser also considers certain environmental, social and governance (ESG) and sustainability factors that it believes could have a material negative or positive impact on the risk profiles of the issuers or underlying collateral assets of certain securities in which the Fund may invest. These determinations may not be conclusive, and securities that may be negatively impacted by such factors may be purchased and retained by the Fund while the Fund may divest or not invest in securities that may be positively impacted by such factors. The Adviser may sell investments, including Structured Products, if it determines that any of the mentioned factors have changed materially from its initial analysis or that other factors indicate that an investment is no longer earning a return commensurate with its risk or that a different security will better help the Fund achieve its investment objective.
AOIIX Holdings
Top 10 holdings of Angel Oak Total Return Bond Fund by percentage of net assets, from the fund's latest SEC N-PORT filing.
| Holding | % of net assets |
|---|---|
| Mello Mortgage Capital Accepta | 6.08% |
| J.P. Morgan Wealth Management | 5.45% |
| COLT Funding LLC | 3.27% |
| FHLMC Multifamily Structured P | 2.98% |
| Fannie Mae | 2.97% |
| Freddie Mac | 2.95% |
| Fannie Mae | 2.82% |
| First American Government Obli | 2.81% |
| Preston Ridge Partners Mortgag | 2.63% |
| Government National Mortgage A | 2.61% |
AOIIX Portfolio Allocation
Asset-class allocation of Angel Oak Total Return Bond Fund by percentage of net assets, from the latest SEC N-PORT filing.
| Asset class | Allocation |
|---|---|
| Securitized | 89.3% |
| Fixed Income | 7.0% |
| Cash & Equivalents | 2.8% |
| Real Estate | 0.8% |
AOIIX Performance
Total returns for AOIIX (as of 2026-10-01), from SEC filings.
| Period | Total return |
|---|---|
| 1 year | 2.2% |
| 3 years (annualised) | -2.8% |
AOIIX Risk Information
Risk metrics for AOIIX, derived from monthly returns in SEC filings.
- 1-year volatility (annualised): 7.3%
AOIIX Costs and Fees
AOIIX costs about $44 per $10,000 invested per year in fund expenses.
- Net expense ratio: 0.44%
- Gross expense ratio: 1.17%
- Portfolio turnover: 53%
- Brokerage commissions: 0.52 bps of average net assets (SEC N-CEN)
AOIIX Cashflows
Over the 12 months to 2024-01, Angel Oak Total Return Bond Fund had net inflows of $3.08M, from monthly SEC N-PORT filings.
| Month | Net flow |
|---|---|
| 2024-01 | $0 |
| 2023-12 | $3.00M |
| 2023-11 | $0 |
| 2023-10 | $83.42K |
| 2023-09 | $0 |
| 2023-08 | $0 |
AOIIX Debt Constituents
Largest debt holdings of Angel Oak Total Return Bond Fund by percentage of net assets, from the latest SEC N-PORT filing.
| Debt holding | % of net assets |
|---|---|
| X-Caliber Funding LLC | 1.54% |
| Dime Community Bancshare | 1.46% |
| Mercantile Bank Corp. | 1.32% |
| Forbright, Inc. | 1.32% |
| Renasant Corp. | 0.76% |
| Preferred Bank La Calif | 0.60% |
AOIIX Prospectus and SEC Filings
Official Angel Oak Total Return Bond Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.
- Prospectus (485BPOS) — filed 2023-05-25
- Prospectus (485BPOS) — filed 2022-12-30
- Prospectus supplement (497) — filed 2022-12-14
- Portfolio holdings (N-PORT) — filed 2024-03-22
- Portfolio holdings (N-PORT) — filed 2023-12-28
- Portfolio holdings (N-PORT) — filed 2023-09-25
- Annual census (N-CEN) — filed 2024-04-09
- Annual census (N-CEN) — filed 2023-04-12
Related Funds
Other Long Securitized (MBS/ABS/CMBS) Bond funds tracked on ABC INVEST:
Data Sources
ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.