Concerned Investor to Vote Against Angel Oak Financial Strategies Income Term Trust Trustee Nominees

A FINS shareholder publicly opposes two trustee nominees, citing governance structure, preferred-share voting rights and a long-running NAV discount.

Rhea-AI Summary

Angel Oak Financial Strategies Income Term Trust (FINS) shareholder Trevor Montano announced he will vote against Class II trustee nominees Keith M. Schappert and Andrea N. Mullins at the Fund’s September 25, 2026 annual meeting.

He cites their status as holdover trustees since June 2025, lack of independent board refresh since the Fund’s 2019 inception, and what he describes as entrenchment features in the Fund’s governing documents. Montano also points to a May 2026 preferred share issuance at a 5.864% dividend rate, which under the Investment Company Act grants that class the right to elect two trustees, and highlights that FINS common shares have traded at a discount to net asset value on every trading day since February 27, 2020.

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Cites Holdover Trustees, Entrenchment Provisions, Preferred Share Issuance That Removed Trustees from Election by Common Shareholders, and Fund Performance

WASHINGTON, Sept. 3, 2026 /PRNewswire/ -- Trevor Montano ("Mr. Montano"), a shareholder of Angel Oak Financial Strategies Income Term Trust (NYSE: FINS) (the "Fund"), today announced that he intends to VOTE AGAINST the Class II Trustee nominees, Keith M. Schappert and Andrea N. Mullins at the Fund's Annual Meeting of Shareholders on September 25, 2026. The Fund is managed by Angel Oak Capital Advisors, LLC.

Mr. Montano's Reasons

1. Class II Holdover Trustees. Mr. Schappert and Ms. Mullins did not receive sufficient votes at the 2025 Annual Meeting of Shareholders to be elected yet have served as holdover Trustees since June 2025. The Fund's Board had an opportunity to allow shareholders to vote on Class II Trustees at the Special Meeting of Shareholders held in September 2025, but Trustees were not placed on the ballot and holdover ensued.
   
   
2. No Independent Trustee Refreshment. All four independent Trustees have served since the Fund's inception in 2019.
   
   
3. Fund Governing Documents Contain Numerous Entrenchment Provisions. The Fund's governing documents provide for a classified board; a majority-vote standard in contested elections with no resignation requirement, which permits trustees to hold over; removal of trustees only for Cause; a 75% supermajority vote requirement in certain circumstances; and no shareholder right to amend the By-Laws. Shareholders should not mistake the proposed amendment to the Declaration of Trust for a fix: the removal threshold would remain a supermajority, and cause would still be required to remove a Trustee. 
   
   
4. Preferred Share Issuance. In May 2026 — the same day the Fund announced the date of the 2026 Annual Meeting of Shareholders — it announced its first-ever issuance of preferred shares, at a 5.864% dividend rate exceeding the 5.364% rate on senior notes issued the same day, to a single investor. Under Section 18(a)(2)(C) of the Investment Company Act of 1940, the holders of those preferred shares are entitled, voting as a separate class, to elect two Trustees. This Board decision removed two of the Fund's five board seats from election by common shareholders and placed them with one investor.
   
   
5. Fund Performance and the Discount to Net Asset Value. The Fund's common shares have closed at a discount to Net Asset Value on every trading day since February 27, 2020 — more than six years. Addressing the discount is the Board's responsibility. 

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 U.S. Department of the Treasury and has 25 years of experience in the financial services industry.

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. MR. MONTANO IS NOT ABLE TO VOTE YOUR PROXY, NOR DOES THIS COMMUNICATION CONTEMPLATE SUCH AN EVENT.

Shareholders should read the Fund's proxy statement and reach their own conclusions.

Contact
Trevor Montano
info@fins-shareholder.com 

View original content:https://www.prnewswire.com/news-releases/concerned-investor-to-vote-against-angel-oak-financial-strategies-income-term-trust-trustee-nominees-302869468.html

SOURCE Trevor Montano

FAQ

What did Trevor Montano announce regarding Angel Oak Financial Strategies Income Term Trust (FINS)?

Trevor Montano, a shareholder of FINS, announced that he intends to vote against Class II trustee nominees Keith M. Schappert and Andrea N. Mullins at the Fund’s annual meeting of shareholders scheduled for September 25, 2026.

Which FINS trustee nominees is the concerned investor opposing?

Trevor Montano stated that he will vote against the re-election of Class II trustees Keith M. Schappert and Andrea N. Mullins of Angel Oak Financial Strategies Income Term Trust at the 2026 annual meeting of shareholders.

What reasons does Trevor Montano give for voting against FINS’s Class II trustee nominees?

Montano cites the Class II trustees’ holdover status since June 2025, no refresh of the four independent trustees since the Fund’s 2019 inception, governance provisions he characterizes as entrenching the board, a May 2026 preferred share issuance affecting board elections, and the Fund’s prolonged discount to net asset value.

How does the May 2026 preferred share issuance affect trustee elections at FINS?

In May 2026 the Fund issued its first preferred shares at a 5.864% dividend rate to a single investor, alongside senior notes at 5.364%. Under Section 18(a)(2)(C) of the Investment Company Act, those preferred holders may elect two trustees voting as a separate class.

What does Trevor Montano say about the discount to NAV for FINS common shares?

Montano notes that FINS common shares have closed at a discount to net asset value on every trading day since February 27, 2020, more than six years, and states that addressing this persistent discount is the responsibility of the Fund’s board.

Is Trevor Montano soliciting proxies from other Angel Oak FINS shareholders?

No. The communication explicitly states it is not a solicitation of authority to vote proxies. Montano asks shareholders not to send him proxy cards, notes he cannot vote their proxies, and urges investors to read the Fund’s proxy statement and make their own decisions.