Angel Oak Financial Strategies Income Term Trust of Beneficial Interest (FINS)

About Angel Oak Financial Strategies Income Term Trust of Beneficial Interest (FINS)

In pursuing its investment objective, the Fund invests primarily in debt issued by financial institutions, including subordinated debt (sub-debt), unrated debt, senior debt and high yield securities, focusing on those in the U.S. community bank sector. The Fund may also invest in common equity, preferred equity, convertible securities and warrants of these institutions. The Fund will, under normal circumstances, invest at least a majority of its net assets plus the amount of any borrowings for investment purposes in securities issued by U.S. community banks. See Investment Objective and Strategies Community Banking Sector Focus. To a lesser extent, but up to 50% of the Funds net assets plus the amount of any borrowings for investment purposes, under normal circumstances, the Fund may also invest in similar securities of other U.S. and foreign financial services companies that are not U.S. community banks and may be of any size. These companies may include, but are not limited to, banks, thrifts, finance companies, brokerage and advisory firms, insurance companies and financial holding companies. Together with U.S. community banks, these types of companies are referred to as financial institutions, and the Fund will, under normal circumstances, invest at least 80% of the value of its net assets plus the amount of any borrowings for investment purposes in securities of such financial institutions (measured at the time of purchase). The Fund also will target at least 80% of the Funds net assets plus the amount of any borrowings for investment purposes in debt issued by Federal Deposit Insurance Corporation (FDIC) insured institutions that accept deposits and any holding company of such institutions (depository institutions), which includes community bank debt and securitizations of community bank debt. The Fund will, under normal circumstances, invest at least 50% of its depository institution debt investments in debt investments rated investment grade by Standard & Poors Rating Group (S&P) or of equivalent quality rating by another Nationally Recognized Statistical Ratings Organization, or if unrated, considered by the Adviser to be of comparable quality based on the Advisers internal quantitative models. A significant portion of the Funds assets may be invested in investments rated below investment grade or that are unrated, including subordinated notes (commonly referred to the residual or equity tranche) in securitizations of community bank debt.

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