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Shall We Repeal the Laws of Economics – Part IIIManaged by Oaktree Capital Management, a pioneer in credit investing
Seeks to generate attractive income and strong risk-adjusted returns by constructing a diversified portfolio of credit investments, each secured by cash-flowing assets.1
1 There is no guarantee that the investment strategy described above will be successful or lead to positive performance of the Fund. See the Fund’s prospectus for additional information regarding investment strategies and risks.
Oaktree Asset-Backed Income Fund is subject to significant risks and an investor may lose all, or part of, their investment.
Illiquidity: Shares are not traded on any exchange and can only be redeemed through limited quarterly repurchase offers.
Leverage: The Fund may use borrowed money, which can magnify both gains and losses.
Credit Risk: Issuers of underlying assets may default, leading to losses.
Asset-Backed Securities Risk: Investments in ABS, CLOs, and similar instruments are subject to credit, market, structural, and legal risks.
Below Investment Grade/High-Yield Risk: The Fund may invest in “junk” bonds, which are more volatile and have a higher risk of default.
Valuation Risk: Some assets may be difficult to value, especially illiquid or complex securities.
Interest Rate Risk: Rising interest rates can reduce the value of the Fund’s investments.
Real Estate & Mortgage-Backed Securities Risk: Exposure to real estate and mortgage-backed securities brings risks related to property values, borrower defaults, and market conditions.
Management Risk: The Fund’s performance depends on the skill of Oaktree’s investment team.
Repurchase Offer Risk: Repurchase offers may not be sufficient to meet all redemption requests, and may force asset sales at unfavorable prices.
Inflation Risk: Inflation may erode the real value of investment returns.
Foreign Securities & Currency Risk: Investments outside the U.S. are subject to additional risks, including currency fluctuations and political instability.
Regulatory & Legal Risk: Changes in laws or regulations could adversely affect the Fund.
Cybersecurity & Operational Risk: Vulnerability to cyber-attacks, data breaches, or operational failures.
Conflicts of Interest: Oaktree manages other funds, which may create conflicts in allocating investment opportunities.
Non-Diversification: As a non-diversified fund, the Fund may invest a larger portion of its assets in the securities of one or a few issuers than a diversified fund. A non-diversified fund’s investment in fewer issuers may result in the fund’s shares being more sensitive to the economic results of those issuers. An investment in the Fund could fluctuate in value more than an investment in a diversified fund.
The Fund is new with limited operating history and there can be no assurance that the Fund will grow or maintain an economically viable size, in which case the Board of Trustees of the Fund may determine to liquidate the Fund.
