The Angel Oak UltraShort Income Fund has exceeded $1 billion in assets under management and this was coincided with its three-year anniversary and, after passing the milestone of $500 million in AUM last August.
“The Fund’s rapid growth in the face of volatility throughout 2020 was a testament to the strength of its strategy and to its distinct approach in seeking yield in the ultra-short space,” said Clayton Triick, senior portfolio manager of AOUIX. “Concerns surrounding inflation and interest-rate risk, coupled with near-zero yields in money market funds, may make AOUIX stand out to investors who seek higher-yielding lower-duration strategies.”
As of March 31, 2021, AOUIX offered an attractive yield of 1.43% with an annualised total return of 2.93% since inception. Year-to-date, AOUIX has offered 0.46% to investors, while its benchmark, the Bloomberg Barclays 9-12 Month U.S. Treasury Bill Index, has returned 0.07%.
Angel Oak stays its assets flow in, basically from its registered investment advisors with a more sophisticated approach to constructing fixed-income portfolios. In a tricky environment, with equity markets on to run red-hot and many bonds running an added duration risk, RIAs appear to find the ultra-short space an attractive solution to today’s yield issue.
“AOUIX’s impressive growth in 2020 can be attributed to the dedication of the portfolio management team in maintaining a high standard of risk management with a compelling bottom-up approach to seeking yield,” remarked Sam Dunlap, chief investment officer of public strategies at Angel Oak. “Our team’s ability to provide what we believe is an attractive yield profile for the Fund, while accumulating more than $1 billion in assets in a short time period, underscores our success.”
AOUIX is now available on most platforms, including Schwab, Fidelity, TD Ameritrade, UBS, Benjamin Edwards, LPL, Raymond James and RBC.
