Concerned Investor Issues Letter to Angel Oak Financial Strategies Income Term Trust (FINS) Shareholders Regarding the Need to Vote AGAINST a New Investment Advisory Agreement at Special Meeting
Trevor Montano, a concerned shareholder of Angel Oak Financial Strategies Income Term Trust (NYSE: FINS), has issued a letter urging fellow shareholders to vote AGAINST a new investment advisory agreement with Angel Oak Capital Advisors, LLC at an upcoming Special Meeting. The letter highlights significant concerns, including FINS' share price decline of over 35% since inception in 2019 and poor performance relative to peers.
Key issues include the fund's underperformance in 3- and 5-year returns, Angel Oak receiving more in advisory fees ($20.0M) than net income generated ($9.0M) over FY 2023-2025, and governance concerns regarding unelected trustees. The fund has traded at a persistent discount to NAV since February 2020, with a median discount of 9.4%, more than double the peer median.
Trevor Montano, azionista preoccupato di Angel Oak Financial Strategies Income Term Trust (NYSE: FINS), ha inviato una lettera in cui invita gli altri azionisti a votare CONTRO un nuovo accordo di consulenza sugli investimenti con Angel Oak Capital Advisors, LLC alla prossima Assemblea Straordinaria. Nella lettera emergono rilevanti criticità, tra cui il calo del prezzo delle azioni di FINS di oltre il 35% dalla quotazione nel 2019 e una performance inferiore rispetto ai pari.
I punti principali segnalati sono la scarsa performance sui rendimenti a 3 e 5 anni, il fatto che Angel Oak abbia percepito più commissioni di gestione ($20,0M) del reddito netto generato ($9,0M) nel periodo fiscale 2023-2025, e preoccupazioni di governance relative a fiduciari non eletti. Il fondo ha negoziato a uno sconto persistente rispetto al NAV sin da febbraio 2020, con uno sconto mediano del 9,4%, più del doppio della mediana dei peer.
Trevor Montano, un accionista preocupado de Angel Oak Financial Strategies Income Term Trust (NYSE: FINS), ha enviado una carta instando a los demás accionistas a votar EN CONTRA de un nuevo acuerdo de asesoría de inversiones con Angel Oak Capital Advisors, LLC en la próxima Junta Especial. La carta subraya preocupaciones importantes, entre ellas la caída del precio de las acciones de FINS de más del 35% desde su inicio en 2019 y el rendimiento por debajo de sus pares.
Los temas clave incluyen el rendimiento inferior en retornos a 3 y 5 años, que Angel Oak recibió más en honorarios de asesoría ($20,0M) que los ingresos netos generados ($9,0M) durante el ejercicio 2023-2025, y cuestiones de gobernanza relativas a fiduciarios no elegidos. El fondo ha cotizado con un descuento persistente respecto al NAV desde febrero de 2020, con un descuento mediano del 9,4%, más del doble de la mediana de sus pares.
트레버 몬타노는 Angel Oak Financial Strategies Income Term Trust (NYSE: FINS)의 우려 있는 주주로서 다가오는 임시총회에서 Angel Oak Capital Advisors, LLC와의 신규 투자 자문 계약에 반대표를 던질 것을 다른 주주들에게 촉구하는 서한을 발송했습니다. 서한에는 2019년 설립 이후 FINS 주가가 35% 이상 하락하고 동종업계 대비 실적이 부진하다는 등 중대한 우려가 강조되어 있습니다.
주요 문제로는 3년 및 5년 수익률의 저조한 성과, Angel Oak가 FY 2023-2025 기간 동안 자문 수수료로 더 많은 금액($20.0M)을 받았고 순이익은 $9.0M에 불과했다는 점, 그리고 선출되지 않은 이사들에 대한 거버넌스 우려가 포함됩니다. 이 펀드는 2020년 2월 이후 NAV 대비 지속적인 할인 상태로 거래되어 왔으며, 중앙값 할인률은 9.4%로 동종 펀드 중앙값의 두 배가 넘습니다.
Trevor Montano, un actionnaire préoccupé de Angel Oak Financial Strategies Income Term Trust (NYSE: FINS), a adressé une lettre invitant les autres actionnaires à voter CONTRE un nouvel accord de conseil en investissements avec Angel Oak Capital Advisors, LLC lors de la prochaine Assemblée exceptionnelle. La lettre souligne des inquiétudes majeures, notamment la baisse du cours de FINS de plus de 35% depuis son lancement en 2019 et des performances inférieures à celles des pairs.
Les points clés incluent la sous-performance sur les rendements à 3 et 5 ans, le fait qu’Angel Oak a perçu plus de frais de conseil ($20,0M) que le revenu net généré ($9,0M) sur l’exercice 2023-2025, et des préoccupations de gouvernance concernant des administrateurs non élus. Le fonds se négocie depuis février 2020 à un décote persistante par rapport à la VAN, avec une décote médiane de 9,4%, soit plus du double de la médiane des pairs.
Trevor Montano, ein besorgter Aktionär von Angel Oak Financial Strategies Income Term Trust (NYSE: FINS), hat einen Brief veröffentlicht, in dem er die Mitaktionäre auffordert, bei der bevorstehenden außerordentlichen Sitzung GEGEN eine neue Investmentberatungsvereinbarung mit Angel Oak Capital Advisors, LLC zu stimmen. In dem Schreiben werden erhebliche Bedenken hervorgehoben, darunter der Rückgang des FINS-Aktienkurses um über 35% seit dem Börsengang 2019 und eine schwächere Performance im Vergleich zu Peers.
Wesentliche Punkte sind die Unterperformance bei 3- und 5-Jahres-Renditen, dass Angel Oak in den Geschäftsjahren 2023–2025 mehr Beratungsgebühren ($20,0M) einnahm als der erwirtschaftete Nettogewinn ($9,0M), sowie Governance-Bedenken hinsichtlich nicht gewählter Treuhänder. Der Fonds wurde seit Februar 2020 konstant mit einem Abschlag auf den NAV gehandelt, mit einem Medianabschlag von 9,4%, mehr als dem Doppelten des Peer-Medians.
- None.
- Share price declined over 35% since inception in 2019
- Fund has traded at a discount to NAV every day since February 2020, with 9.4% median discount
- Significant underperformance vs peers over 3- and 5-year periods
- Advisory fees ($20.0M) exceeded net income ($9.0M) in FY 2023-2025
- Two unelected trustees remain on board despite receiving only 36% of votes
- Lack of competitive selection process for investment adviser since inception
Insights
An activist investor's campaign against FINS' advisory agreement highlights severe fund underperformance and governance concerns.
This shareholder activism campaign represents a significant challenge to Angel Oak Capital Advisors' continued management of the FINS closed-end fund. Investor Trevor Montano has detailed a compelling case against renewing the investment advisory agreement, based on several critical factors.
The governance concerns are substantial. Two incumbent trustees failed to receive majority approval at the 2025 Annual Meeting (receiving only
The fund's performance under Angel Oak's management has been objectively poor. Since inception in 2019, FINS has lost over
Perhaps most damning is the fee structure relative to performance. Angel Oak has received more in advisory fees (
This activism campaign highlights how fund governance structures can entrench underperforming managers. The staggered board structure, majority vote requirements without plurality carveouts for contested elections, and lack of resignation requirements for unelected trustees all serve to protect management at shareholders' expense. The upcoming special meeting vote represents a crucial inflection point for FINS shareholders to potentially force accountability.
Announces intent to vote AGAINST a new investment advisory agreement with
incumbent investment adviser Angel Oak Capital Advisors, LLC
FINS share price has declined by over
Oak Capital Advisors, LLC should be held accountable
Dear Fellow FINS Shareholders -
Just two months ago, shareholders voted for change at the 2025 FINS Annual Meeting and DID NOT APPROVE an identical new investment advisory agreement to the one before shareholders at the upcoming Special Meeting. Additionally, two incumbent Trustees recommended by the Board of Trustees ("Board"), Keith M. Schappert and Andrea N. Mullins each received only
I am voting AGAINST the new investment advisory agreement and AGAINST any potential adjournment of the Special Meeting and encourage all shareholders to join me.
I am voting AGAINST the new investment advisory agreement primarily for the following reasons:
1. The Board has a fiduciary responsibility to engage the best investment advisor for FINS at competitive investment advisory fees – it appears the Board, with the same four independent Trustees since inception, has never run a competitive selection process for the FINS investment adviser. Additionally, given the outcome of the Trustee election at the Annual Meeting, only two of six Trustees are both independent and duly elected by shareholders. How can shareholders trust that the Board is acting in their best interest, identifying the best investment adviser for FINS, when two-thirds of the Board is either unelected or an employee of Angel Oak?
2. FINS poor financial performance under Angel Oak – Angel Oak has been the investment adviser to FINS since inception, while the share price is down over
FINS has also underperformed on total shareholder returns relative to a group of peer closed-end funds, especially over 3- and 5-years where FINS has significantly underperformed (see table below). Additionally, FINS traded at a discount to NAV that was more than double the peer closed-end fund median discount to NAV as of June 30, 2025.
FINS Closed-End Fund Peer Performance Analysis (June 30, 2025)4 | ||||
Annualized Total Shareholder Returns (%) | Discount to | |||
1 year | 3 year | 5 year | ||
FINS Peers – NAV | 10.23 | 8.38 | 5.84 |
(2.59) |
FINS Peers – Market Price | 15.17 | 10.59 | 5.76 | |
FINS – NAV | 10.11 | 3.38 | 2.39 |
(5.87) |
FINS – Market Price | 15.85 | 6.05 | 3.68 | |
FINS vs. Peers – NAV | (0.12) | (5.00) | (3.45) | |
FINS vs. Peers – Market Price | 0.69 | (4.54) | (2.08) | |
3. Angel Oak enrichment at expense of shareholders – FINS has paid Angel Oak more in investment advisory fees than cumulative net income generated for shareholders over the past 3- and 5- fiscal years, respectively.
FINS Cumulative Advisory Fees Paid and Net Income | ||
($MM) | FY 2023-2025 | FY 2021-2025 |
FINS Investment Advisory Fees Paid5 | ||
FINS Cumulative Net Income5 | ||
Additionally, Angel Oak is compensated based on managed assets and receives more fees when FINS has higher levels of financial leverage. I believe Angel Oak has inappropriately maintained FINS financial leverage through the interest rate cycle and yield curve inversions to enrich themselves, at the expense of shareholders.
4. Anti-shareholder actions by the Board and Angel Oak – I contend that the Board has been acting in the best interest of Angel Oak for some time, not in the best interests of shareholders. Numerous entrenchment governance provisions including the staggered board structure, unitary board, majority vote requirement without a plurality carveout for contested elections and lack of a resignation requirement for incumbent Trustees that are not elected seek to silence shareholders and prevent us from exercising our rights. The Board's decision not to hold a Trustee election at the Special Meeting but instead permit unelected Trustees to recommend Angel Oak receive a new investment advisory agreement is another example of such actions.
Sincerely,
Trevor Montano
Concerned investor and advocate for FINS Shareholders
About Trevor Montano
Trevor Montano is a private investor focused on financial services, business services, financial technology and energy companies. He formerly served as the Chief Investment Officer at the
THIS IS NOT A SOLICITATION OF AUTHORITY TO VOTE YOUR PROXY. DO NOT SEND MR. MONTANO YOUR PROXY CARD. MR. MONTANO IS NOT ASKING FOR YOUR PROXY CARD AND WILL NOT ACCEPT PROXY CARDS IF SENT. HE IS NOT ABLE TO VOTE YOUR PROXY, NOR DOES THIS COMMUNICATION CONTEMPLATE SUCH AN EVENT.
1 Per 2025 Annual Meeting certified results (LINK)
2 FINS inception 5/29/2019 (market price
3 Median FINS market price discount to NAV February 27, 2020 through June 30, 2025
4 Source: FINS and peer closed-end fund fact sheets as of June 30, 2025. FINS closed-end fund peers identified by Mr. Montano are tickers: FPF, LDP, JPI and NPFD. Figures may not compute exactly due to rounding.
5 Source: S&P Capital IQ Pro and FINS annual reports (2021-2025).
Contact:
West Potomac Capital LLC
info@westpotomaccap.com
View original content:SOURCE West Potomac Capital LLC
FAQ
What are the main reasons for voting against FINS's new investment advisory agreement?
How has FINS performed compared to its peer closed-end funds?
What is the current discount to NAV for FINS shares?
How much has Angel Oak Capital Advisors earned in fees compared to FINS's net income?
What governance issues are highlighted in the letter to FINS shareholders?
