SCHEDULE 13G/A: Sit Investment Associates Discloses 28.7% Stake in Angel Oak Financial Strategies Income Term Trust

Sit Investment Associates, Inc. and its subsidiary, Sit Fixed Income Advisors II, LLC, have filed an amended Schedule 13G disclosing a combined beneficial ownership of 28.7% of Angel Oak Financial Strategies Income Term Trust's common stock.

Summary

• The filing is an Amendment No. 3 to Schedule 13G for Angel Oak Financial Strategies Income Term Trust (Issuer).
• The reporting persons are Sit Investment Associates, Inc. (Minnesota) and Sit Fixed Income Advisors II, LLC (Delaware), both registered investment advisers.
• They collectively beneficially own 9,580,741 shares of Common Stock, representing 28.7% of the class.
• The ownership percentage is based on 33,416,851 shares of common stock outstanding as of January 31, 2025, adjusted for shares issued pursuant to the Issuer's rights offering.
• Both reporting persons hold shared voting power and shared dispositive power over all the reported shares.
• The securities are held in client accounts, and the reporting persons disclaim beneficial ownership of these securities under Rule 13d-4.
• The shares were acquired and are held in the ordinary course of business and not for the purpose of or with the effect of changing or influencing the control of the issuer.

Sentiment

Score: 6

Explanation: The filing is a routine disclosure of beneficial ownership by investment advisers, indicating a significant, non-control stake in the issuer. It does not contain any negative news or forward-looking statements that would alter sentiment significantly, but confirms a large institutional holding.

Positives

• The filing indicates a significant, stable institutional holding by Sit Investment Associates and its subsidiary, suggesting continued confidence in Angel Oak Financial Strategies Income Term Trust.
• The reporting persons explicitly state that the shares were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing control, which generally signals a passive, long-term investment approach.

Future Outlook

The document is a beneficial ownership disclosure and does not contain any forward-looking statements or guidance regarding the issuer's future performance or strategic direction.

Management Comments

• "The securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect, other than activities solely in connection with a nomination under §§ 240.14a-11."

Industry Context

This Schedule 13G filing is a routine disclosure for institutional investors holding significant stakes in publicly traded companies. It highlights continued institutional interest in closed-end funds, particularly those focused on financial strategies income, and provides transparency regarding major shareholders.

Stakeholder Impact

• Shareholders: Provides transparency regarding significant institutional ownership, which can be viewed as a vote of confidence from a major investor.
• Investment Professionals: Offers insight into institutional holdings and potential investment strategies related to Angel Oak Financial Strategies Income Term Trust.

Key Dates

Keywords

SEC filing, Schedule 13G, beneficial ownership, Angel Oak Financial Strategies Income Term Trust, Sit Investment Associates, Sit Fixed Income Advisors II, common stock, investment adviser, institutional ownership, closed-end fund