ANGL looks for value in the high-yield space by targeting fallen angels, bonds that are under duress or have been downgraded. The investment thesis is interesting. Credit downgrades can generate short-term downward pricing pressure. Future credit upgrade will compress the credit spread, which can lead to price appreciation. In combination, the strategy aims to buy low and sell high for maximum total returns. ANGL is limited to USD issues, but holds a sizable share of debt from non-US issuers. It also has a markedly high average maturity and duration, and thus carries significant interest-rate risk in addition to credit risk. Prior to February 28, 2020 the fund tracked the unconstrained index-- ICE BofAML US Fallen Angel High Yield Index.
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