Angel Oak Financial Strategies Income Term Trust of Beneficial Interest

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 the securities of financial institutions measured at the time of purchase. For purposes of the Fund 80% investment policy the Fund may invest in debt securities including subdebt unrated debt senior debt preferred securities high yield securities and TruPS equity securities including common equity preferred equity convertible securities and warrants… 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.