Angel Oak Capital Advisors has launched its Angel Oak Multi Strategy Income Fund to invest in ABS.
The fund is managed by Angel Oak portfolio managers Brad Friedlander and Ashish Negandhi.
"Our strategy initially is to focus on the asset-backed securities market. This asset class has traditionally been available only to hedge fund like structures, so we are excited to be opening a mutual fund that takes advantage of these types of opportunities in the fixed income marketplace," said Friedlander, who also serves as Angel Oak's managing partner.
The press release on the new fund said that it is intended to provide both individual and professional investors with the opportunity to invest in alternative fixed-income instruments.
The fund is designed to minimize interest rate sensitivity while still earning a high current income through the use of ABS.
The firm stressed that despite its focus on ABS, the Fund’s versatility allows it to “continuously evaluate relative-value opportunities”.
Pimco also reportedly set up a fund that will invest in ABS, named the PIMCO Global Investor Series (GIS) Diversified Income Duration Hedged Fund. The firm's Executive Vice President Eve Tournier will be managing the fund, which will also invest in a wide range of fixed-income assets such as high-yield, investment grade, EMD, and municipal bonds.