Ellington Income
Opportunities Fund

About the Fund

The Ellington Income Opportunities Fund is a continuously offered, non-diversified, closed-end investment management company operating as an interval fund. The Fund seeks to capitalize on the broad opportunity set spanning mortgage, real estate, consumer credit, and corporate sectors in both the public and private markets.

Serving as the Fund’s Sub-advisor, Ellington Global Asset Management, LLC (“Ellington”) is an experienced institutional investment manger that takes a dynamic approach to fixed income investing, attempting to provide high cash flow and attractive risk-adjusted returns throughout the credit cycle.

A comprehensive alternative credit solution for individual investors

Opportunistic Credit Strategy
Broad investable universe includes structured
credit and other non-traditional credit sectors

Experienced Institutional Manager
Invest behind the power of a distinguished global
credit investing platform

Accessible Fund Structure
Access to an institutional credit strategy through
an interval fund structure

Total Return Objective
The fund seeks total return through both current
income and capital gains

Why allocate to alternative credit?

Enhanced Return Potential
Assets are less liquid and more complex than traditional credit assets, providing opportunities to exploit market inefficiencies.

Diversification
Assets are relatively less correlated to equities than traditional liquid credit assets, offering the potential for greater diversification*.

*Diversification does not assure a profit or prevent loss in a declining market.

Why an interval fund?

As a type of closed-end fund, interval funds are accessible to individual investors and offer many investor-friendly features.

Interval funds periodically offer to repurchase a limited percentage of outstanding shares from shareholders, rather than allowing investors to withdraw funds on a daily basis.

This limited and known liquidity profile allows portfolio managers to pursue less liquid, more complex investments that may offer the potential for enhanced returns.

fundfeatures_graphic_new

*Distributions and repurchase offers are not guaranteed

Why Ellington?

Founded in 1994, Ellington has one of the longest histories of structured credit investing in the alternative asset management industry and has navigated multiple credit cycles.

Ellington is a global credit manager with offerings ranging from hedge funds, customized separate accounts, private funds and two permanent capital vehicles.

$
Billion in
Assets Under
Management1
Global offices:
Old Greenwich, CT
New York and London
Partners
own the
firm
Years average industry
experience of senior
portfolio management

Strengths & Capabilities

icon_1 (1)

Integrated proprietary loan-level
credit modeling framework and
information infrastructure

icon_2 (1)

Deep network of sector-specific
relationships improves access to
deal flow and privately negotiated
transactions

icon_3 (1)

Strong reputation as a reliable
source of capital within small and
inefficient markets

1 As of August 2019, $8.5 billion AUM includes approximately $1.5 billion of Ellington-sponsored CLO equity and notes and $0.4 billion of operational mandate AUM advised by a third party. Ellington-sponsored CLO AUM includes the face amount of CLO notes and market value of CLO equity, excluding amounts of notes and equity held by other Ellington-managed funds and accounts. AUM includes uncalled capital commitments, if any.

Portfolio Managers

mike_v_headshot

Michael Vranos

Mr. Vranos founded Ellington in 1994 to capitalize on distressed conditions in the MBS derivatives market. Mr. Vranos began his Wall Street career in 1983, after graduating magna cum laude, Phi Beta Kappa with a Bachelor of Arts in Mathematics from Harvard University.

mark_t_headshot

Mark Tecotzky

Mr. Tecotzky is a Partner, Managing Director, and head manager for all MBS/ABS credit. Prior to joining Ellington, Mr. Tecotzky was the senior trader in the mortgage department at Credit Suisse. Mr. Tecotzky holds a B.S. from Yale University and received a National Science Foundation fellowship to study at MIT.

Fund Strategy

Investment objective is to seek total return, including capital gains and current income.

Broad Opportunity Set
Opportunistic strategy to pursue value and current income across various types of mortgage, consumer, and corporate-related credit.

Potential for investors with concentrated corporate
credit exposure to diversify credit risk within their
fixed income portfolios.

Less Liquid Assets
Majority of investments will be in assets that are not publicly traded, or that otherwise have less liquidity than exchange-traded securities.

Opportunity to potentially exploit inefficiencies
in smaller, more complex, and less liquid corners
of the credit market.

TARGET ASSETS

Structured
Credit

  • Non-Agency RMBS
  • CMBS
  • CLOs
  • Consumer ABS

Opportunistic
Credit

  • Consumer loans
  • Residentials NPLs and RPLs
  • Syndicated loans

Corporate
Securities

  • Distressed debt
  • High yield bonds
  • CDS

Mortgage & Housing
Equities

  • Equities of REITs, loan originators, loan servicers

Performance

As of October 31, 2019

Performance1Month to DateQuarter to DateYear to DateSince Inception2
EIOMX0.48%0.48%8.73%8.80%
Bloomberg Barclays U.S. Corporate High Yield Index0.28%0.28%11.71%8.49%
S&P/LSTA Leveraged Loan Index-0.45%-0.45%6.31%2.60%

1 The performance data quoted here represents past performance. Current performance may be lower or higher than the performance data quoted above. Investment return and principal value will fluctuate so that shares, when redeemed may be worth more or less than their original cost. Past performance is no guarantee of future results.
2 Inception date for the M share class is 11/13/2018.

Risk Statistics1Standard Deviation2Sharpe Ratio3Max Drawdown4
M Class2.29%2.83-0.43%
Bloomberg Barclays U.S. Corporate High Yield Index6.05%1.27-2.14%
S&P/LSTA Leveraged Loan Index4.69%0.37-2.54%

1 All risk statistics are calculated using monthly return series over the period 12/1/18 - 10/31/19.
2 Standard deviation is a statistical measure of how consistent returns are over time. It is calculated as the square root of variance by determining the variation between each data point relative to the mean. A lower standard deviation indicates historically less volatility.
3 Sharpe ratio is the average return earned in excess of the risk-free rate per unit of volatility. The Auction Average 3-Month U.S. Treasury Bill Rate is used to represent the risk-free rate. Generally, the greater the value of the Sharpe ratio, the more attractive the risk-adjusted return.
4 Max drawdown is the maximum loss from a peak to a trough of a portfolio, before a new peak is attained.

Distributions1

NAV Distribution Rate as of 9/27/20192.39%
Latest Distribution ($ Share)2 as of 9/27/2019$0.06197100
YTD Distributions3 as of 9/27/2019$0.38881145

1 Distribution rates are not performance and are calculated by annualizing the most recent distribution per share and dividing by the NAV as of the reported date. Distributions may be comprised of ordinary income, net capital gains, and/or a return of capital (ROC) of your investment in the fund. Because the distribution rate may include a ROC, it should not be confused with yield or income. A negative value for Undistributed Net Investment Income represents the potential for a ROC on an estimated tax basis. Please refer to the most recent Section 19 Notice, if applicable, for additional information regarding the composition of distributions. Final determination of a distribution’s tax character will be made on Form 1099 DIV sent to shareholders each January.
2 Data does not include special cash dividends.
3 Data is based on distributions since the most recent calendar year end and does not include special cash dividends.

Growth of $10,000 Since Inception:

10k_Chart_Oct

This graph illustrates the performance of a hypothetical $10,000 investment made in this Fund from the inception date of the product, which is 11/13/2018. This is represented as the change in total return at monthly intervals. Total return is a measure of the change in NAV including reinvestment of all distributions and is presented on a net basis reflecting the deduction of fund expenses and applicable fees with expense support provided by Ellington Income Opportunities Fund. The performance quoted represents past performance, is no guarantee of future results and may not provide an adequate basis for evaluating the performance of the Fund over varying market conditions or economic cycles. Investment return and principal value of an investment will fluctuate; therefore, you may have a gain or loss when you sell your shares. Current performance may be higher or lower than the performance data quoted.

Monthly Performance: Class M Shares

JanFebMarAprMayJunJulAugSepOctNovDecYTD
2018N/AN/AN/AN/AN/AN/AN/AN/AN/AN/A0.50%-0.43%0.07%
20190.20%1.60%0.75%0.89%1.37%1.55%0.39%1.16%0.02%0.48%8.73%

Fund Facts

AdviserPrinceton Fund Advisors, LLC
Sub-AdviserEllington Global Asset Management, LLC
Structure1933 & 1940 Act registered continuously offered closed-end interval fund
LiquidityQuarterly; minimum 5% of Fund NAV1
DistributionsQuarterly
Inception DateNovember 13, 2018
CustodianU.S. Bank National Association
Independant AuditorRSM US, LLP
DistributorForeside Fund Services, LLC
Transfer Agent / AdminUS Bank Fund Services, LLC

1 Please reference the Prospectus for further repurchase offer details.

About the Adviser

Princeton Fund Advisors, LLC (“PFA”) together with its affiliates manage approximately $2.9 billion of assets, as of 6/30/2019 and is a Registered Investment Adviser with the SEC.

 

The firm’s Investment Committee members contribute more than 60 years of alternative asset management experience to the portfolio management process. PFA serves as the Adviser to the Fund and is responsible for the selection of Ellington Global Asset Management as the Fund’s Sub-Adviser, the ongoing due diligence review of Ellington and the ongoing monitoring of Ellington’s performance on behalf of the Fund. PFA is also responsible for the oversight of the Fund and assuring that investments are made according to the Fund’s investment objective, policies, and restrictions.