Cheryl Pate
About Cheryl Pate
Cheryl M. Pate (born 1976) serves as an Interested Trustee of Angel Oak Strategic Credit Fund, with service since 2022 on an indefinite term; she is concurrently a Senior Portfolio Manager at Angel Oak Capital Advisors (since 2017) and previously spent 10 years at Morgan Stanley in equity research (Consumer & Specialty Finance) as Executive Director and Senior Lead Analyst . To comply with Section 15(f) independence requirements tied to Brookfield’s acquisition of a majority interest in Angel Oak Companies LP expected by September 30, 2025, Ms. Pate has indicated she will resign from the Board before closing, ensuring at least 75% of trustees are not “interested persons” of the adviser post-transaction .
Past Roles
| Organization | Role | Tenure | Committees/Impact |
|---|---|---|---|
| Angel Oak Capital Advisors, LLC | Senior Portfolio Manager | Since 2017 | Portfolio management for Angel Oak funds and separately managed accounts; senior investment role |
| Morgan Stanley | Equity Research – Executive Director, Senior Lead Analyst (Consumer & Specialty Finance) | 10 years (prior to 2017) | Led Consumer & Specialty Finance research team; financial sector coverage |
External Roles
| Organization | Role | Tenure | Notes |
|---|---|---|---|
| Angel Oak Credit Opportunities Term Trust | Trustee | Since 2022 | Fund complex trustee role |
| Angel Oak Financial Strategies Income Term Trust | Trustee | Since 2023 | Fund complex trustee role |
| Angel Oak Dynamic Financial Strategies Income Term Trust | Trustee | 2022–2022 | Prior trustee role in complex |
Board Governance
- Classification: Interested Trustee due to her employment with the Adviser (Senior Portfolio Manager) .
- Independence structure: Independent Chairman (Ira P. Cohen); majority of Board is Independent Trustees; Independent Trustees hold quarterly executive sessions alongside quarterly Board meetings .
- Committee system: Four standing committees—Audit, Financial & Administrative Oversight; Nominating & Governance; Compliance Oversight; Valuation & Risk Management—each composed exclusively of Independent Trustees; Ms. Pate does not serve on these committees .
- Committee activity: Each of the Audit, Nominating & Governance, Compliance Oversight, and Valuation & Risk Management Oversight Committees met four times in FY ended January 31, 2025 .
- Attendance: Each Trustee attended 75% or more of meetings of the Board and applicable committees in FY ended January 31, 2025 .
- Section 15(f) governance action: In connection with the Brookfield transaction, Ms. Pate will resign before closing to maintain required Board independence levels (≥75% non-interested) for three years post-close .
Fixed Compensation
| Component | Amount | Notes |
|---|---|---|
| Annual retainer (Independent Trustees) | $75,000 | Paid quarterly; pro-rated if <1 year |
| Per meeting fee (regularly scheduled; Independent Trustees) | $12,000 | Per meeting |
| Committee Chair additional annual fee | $12,000 | Pro-rated if <1 year |
| Chair of the Board additional annual fee | $17,000 | Pro-rated if <1 year |
| Pension/retirement plans | None | Funds do not have pension/retirement plans |
| Cheryl M. Pate – FY ended 1/31/2025 total compensation from Funds | $0 | Interested Trustee; $0 from Angel Oak Funds Trust and Angel Oak Strategic Credit Fund |
Performance Compensation
- No equity or performance-based director compensation disclosed for trustees; only cash fees apply to Independent Trustees; Funds do not have pension or retirement plans .
Other Directorships & Interlocks
| Entity | Relationship | Role/Position | Independence/Conflict Note |
|---|---|---|---|
| Angel Oak Capital Advisors, LLC (Adviser) | Affiliate | Senior Portfolio Manager | Dual role (adviser employee and fund trustee) creates “Interested Trustee” status |
| Angel Oak funds (various) | Fund complex | Trustee roles across multiple trusts | Governance consistency across complex; committees are Independent-only |
Expertise & Qualifications
- 16+ years in financial services; extensive portfolio management experience at Angel Oak; prior decade at Morgan Stanley leading Consumer & Specialty Finance equity research .
- Board explicitly cites her qualifications and skills as appropriate for trustee oversight responsibilities, complementing Board capabilities .
Equity Ownership
| Fund | Dollar Range of Equity Securities Owned | Scale Definition |
|---|---|---|
| Angel Oak Multi-Strategy Income Fund | A (None) | A=None; B=$1–$10,000; C=$10,001–$50,000; D=$50,001–$100,000; E=over $100,000 |
| Angel Oak UltraShort Income Fund | A (None) | A=None |
| Angel Oak Income ETF | A (None) | A=None |
| Angel Oak UltraShort Income ETF | A (None) | A=None |
| Angel Oak High Yield Opportunities ETF | A (None) | A=None |
| Angel Oak Mortgage-Backed Securities ETF | A (None) | A=None |
| Angel Oak Strategic Credit Fund | A (None) | A=None |
| Aggregate Dollar Range across all registered investment companies overseen | D ($50,001–$100,000) | Aggregate holdings range |
- Group holdings: Trustees and officers as a group beneficially owned less than 1% of outstanding shares as of April 28, 2025 .
- Note: Statement that neither Independent Trustees nor their immediate families owned securities in the Adviser or principal underwriter (≥$120,000) during the two most recent calendar years; Ms. Pate is not an Independent Trustee .
Governance Assessment
- Independence and conflicts: Ms. Pate’s adviser employment renders her an Interested Trustee; this is a potential conflict of interest mitigated by an Independent Chairman, Independent-only committees, and quarterly executive sessions of Independent Trustees .
- Proactive compliance: Planned resignation prior to Brookfield transaction closing is a strong governance signal to preserve post-transaction independence thresholds under Section 15(f) .
- Engagement: Committee cadence (four meetings each in FY 2025) and ≥75% attendance indicate active Board oversight; however, as an Interested Trustee, Ms. Pate does not sit on Independent-only committees .
- Alignment: $0 fund-paid director compensation and “A=None” fund-level holdings suggest limited direct financial alignment at the fund level; aggregate D-range holdings across registered investment companies modestly improve alignment .
- RED FLAGS: Interested status and dual role at Adviser (structural conflict); minimal fund-level ownership; reliance on Independent-only committees for core oversight functions; mitigants include independent Board majority and formal committee charters and processes .