UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-22980

Angel Oak Funds Trust

(Exact name of registrant as specified in charter)

980 Hammond Drive, Suite 200

Atlanta, Georgia 30328
(Address of principal executive offices) (Zip code)

Ward Bortz, President

980 Hammond Drive, Suite 200

Atlanta, Georgia 30328

(Name and address of agent for service)

Copy to:

Stephen T. Cohen

Matthew E. Barsamian

Dechert LLP

1900 K Street NW

Washington, DC 20006

404-953-4900

Registrant’s telephone number, including area code

Date of fiscal year end: January 31

Date of reporting period: July 31,2026

Item 1. Reports to Stockholders.

	Angel Oak Multi-Strategy Income Fund
	Class A | ANGLX
	Semi-Annual Shareholder Report | July 31, 2026

This semi-annual shareholder report contains important information about the Angel Oak Multi-Strategy Income Fund (the Fund) for the period of  February 1, 2026, to July 31, 2026. You can find additional information about the Fund at  
https://angeloakcapital.com/resources/. You can also request this information by contacting us at 1-855-751-4324.

WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)

Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment*
Class A	$73	1.46%

*	Annualized.

HOW DID THE FUND PERFORM DURING THE PERIOD?

The Fund’s Class A shares returned 1.79%, excluding sales charges, for the six-month period ended July 31, 2026. The Fund outperformed its benchmark, the Bloomberg U.S. Aggregate Bond Index, by 259 basis points. The benchmark returned -0.80% during the same period.

WHAT FACTORS INFLUENCED PERFORMANCE?

The Fund benefited from higher current income, shorter-duration positioning, lower exposure to corporate credit, and spread outperformance across its credit allocations, particularly in non-agency residential mortgage-backed securities (RMBS) and asset-backed securities (ABS). The Fund’s agency RMBS positions were the primary detractor from performance.

HOW WAS THE FUND POSITIONED DURING THE PERIOD?

The Fund increased its allocations to agency RMBS and collateralized loan obligations (CLOs) to capitalize on attractive market opportunities as CLO valuations became increasingly compelling. In addition, the Fund decreased its allocations to non-agency RMBS and agency commercial mortgage-backed securities to enhance overall portfolio diversification.

Top Contributors
↑	Non-Agency RMBS
↑	ABS

Top Detractors
↓	Agency RMBS

HOW DID THE FUND PERFORM  OVER THE PAST 10 YEARS?* (as of  July 31, 2026)

The $10,000 chart reflects a hypothetical $10,000 investment in the class of shares noted and assumes the maximum sales charge. The chart uses total return NAV performance and assumes reinvestment of dividends and capital gains. Fund expenses, including 12b-1 fees, management fees and other expenses were deducted.

CUMULATIVE PERFORMANCE (Initial Investment of $10,000)

ANNUAL AVERAGE TOTAL RETURN (%)

	1 Year	5 Year	10 Year
Class A (without sales charge)	5.77	1.75	2.59
Class A (with maximum 2.25% sales charge)	3.39	1.29	2.36
Bloomberg U.S. Aggregate Bond Index	2.71	-0.40	1.35

*

The Fund’s past performance is not a good predictor of how the Fund will perform in the future.  The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Visit   https://angeloakcapital.com/investments/  for more recent performance information.

KEY FUND STATISTICS (as of July 31, 2026)

Net Assets	$2,501,155,649		Effective Duration	4.00 years
Number of Holdings	1,048		30-Day SEC Yield (Class A)	6.18%
Net Advisory Fee	$11,098,585		30-Day SEC Yield Unsubsidized (Class A)	6.18%
Portfolio Turnover	27%		Weighted Average Life	6.36 years
Average Credit Quality	BBB		Distribution Yield (Class A)	5.27%

	AVAILABILITY OF ADDITIONAL INFORMATION
	For additional information about the Fund; including its prospectus, financial information, holdings, and proxy information, scan the QR code or visit https://angeloakcapital.com/resources/.

HOUSEHOLDING

To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). If you would prefer that your Angel Oak Capital Advisors, LLC documents not be householded, please contact Angel Oak Capital Advisors, LLC at 1-855-751-4324, or contact your financial intermediary. Your instructions will typically be effective within 30 days of receipt by Angel Oak Capital Advisors, LLC or your financial intermediary.

	Angel Oak Multi-Strategy Income Fund
	Class C | ANGCX
	Semi-Annual Shareholder Report | July 31, 2026

This semi-annual shareholder report contains important information about the Angel Oak Multi-Strategy Income Fund (the Fund) for the period of  February 1, 2026, to July 31, 2026. You can find additional information about the Fund at  
https://angeloakcapital.com/resources/. You can also request this information by contacting us at 1-855-751-4324.

WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)

Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment*
Class C	$110	2.21%

*	Annualized.

HOW DID THE FUND PERFORM DURING THE PERIOD?

The Fund’s Class C shares returned 1.33%, excluding sales charges, for the six-month period ended July 31, 2026. The Fund outperformed its benchmark, the Bloomberg U.S. Aggregate Bond Index, by 213 basis points. The benchmark returned -0.80% during the same period.

WHAT FACTORS INFLUENCED PERFORMANCE?

The Fund benefited from higher current income, shorter-duration positioning, lower exposure to corporate credit, and spread outperformance across its credit allocations, particularly in non-agency residential mortgage-backed securities (RMBS) and asset-backed securities (ABS). The Fund’s agency RMBS positions were the primary detractor from performance.

HOW WAS THE FUND POSITIONED DURING THE PERIOD?

The Fund increased its allocations to agency RMBS and collateralized loan obligations (CLOs) to capitalize on attractive market opportunities as CLO valuations became increasingly compelling. In addition, the Fund decreased its allocations to non-agency RMBS and agency commercial mortgage-backed securities to enhance overall portfolio diversification.

Top Contributors
↑	Non-Agency RMBS
↑	ABS

Top Detractors
↓	Agency RMBS

HOW DID THE FUND PERFORM  OVER THE PAST 10 YEARS?* (as of  July 31, 2026)

The $10,000 chart reflects a hypothetical $10,000 investment in the class of shares noted and assumes the maximum sales charge. The chart uses total return NAV performance and assumes reinvestment of dividends and capital gains. Fund expenses, including 12b-1 fees, management fees and other expenses were deducted.

CUMULATIVE PERFORMANCE (Initial Investment of $10,000)

ANNUAL AVERAGE TOTAL RETURN (%)

	1 Year	5 Year	10 Year
Class C (without sales charge)	4.96	0.97	1.82
Class C (with maximum 1.00% deferred sales charge)	3.96	0.97	1.82
Bloomberg U.S. Aggregate Bond Index	2.71	-0.40	1.35

*

The Fund’s past performance is not a good predictor of how the Fund will perform in the future.  The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Visit   https://angeloakcapital.com/investments/  for more recent performance information.

KEY FUND STATISTICS (as of July 31, 2026)

Net Assets	$2,501,155,649		Effective Duration	4.00 years
Number of Holdings	1,048		30-Day SEC Yield (Class C)	5.57%
Net Advisory Fee	$11,098,585		30-Day SEC Yield Unsubsidized (Class C)	5.56%
Portfolio Turnover	27%		Weighted Average Life	6.36 years
Average Credit Quality	BBB		Distribution Yield (Class C)	4.60%

	AVAILABILITY OF ADDITIONAL INFORMATION
	For additional information about the Fund; including its prospectus, financial information, holdings, and proxy information, scan the QR code or visit https://angeloakcapital.com/resources/.

HOUSEHOLDING

To reduce Fund expenses, only one copy of most shareholder documents may be mailed to shareholders with multiple accounts at the same address (Householding). If you would prefer that your Angel Oak Capital Advisors, LLC documents not be householded, please contact Angel Oak Capital Advisors, LLC at 1-855-751-4324, or contact your financial intermediary. Your instructions will typically be effective within 30 days of receipt by Angel Oak Capital Advisors, LLC or your financial intermediary.

	Angel Oak Multi-Strategy Income Fund
	Institutional Class | ANGIX
	Semi-Annual Shareholder Report | July 31, 2026

This semi-annual shareholder report contains important information about the Angel Oak Multi-Strategy Income Fund (the Fund) for the period of  February 1, 2026, to July 31, 2026. You can find additional information about the Fund at  
https://angeloakcapital.com/resources/. You can also request this information by contacting us at 1-855-751-4324.

WHAT WERE THE FUND COSTS FOR THE LAST SIX MONTHS? (based on a hypothetical $10,000 investment)

Class Name	Costs of a $10,000 investment	Costs paid as a percentage of a $10,000 investment*
Institutional Class	$61	1.21%

*	Annualized.

HOW DID THE FUND PERFORM DURING THE PERIOD?

The Fund’s Institutional Class shares returned 1.80% for the six-month period ended July 31, 2026. The Fund outperformed its benchmark, the Bloomberg U.S. Aggregate Bond Index, by 260 basis points. The benchmark returned -0.80% during the same period.

WHAT FACTORS INFLUENCED PERFORMANCE?

The Fund benefited from higher current income, shorter-duration positioning, lower exposure to corporate credit, and spread outperformance across its credit allocations, particularly in non-agency residential mortgage-backed securities (RMBS) and asset-backed securities (ABS). The Fund’s agency RMBS positions were the primary detractor from performance.

HOW WAS THE FUND POSITIONED DURING THE PERIOD?

The Fund increased its allocations to agency RMBS and collateralized loan obligations (CLOs) to capitalize on attractive market opportunities as CLO valuations became increasingly compelling. In addition, the Fund decreased its allocations to non-agency RMBS and agency commercial mortgage-backed securities to enhance overall portfolio diversification.

Top Contributors
↑	Non-Agency RMBS
↑	ABS

Top Detractors
↓	Agency RMBS

HOW DID THE FUND PERFORM  OVER THE PAST 10 YEARS?* (as of  July 31, 2026)

The $500,000 chart reflects a hypothetical $500,000 investment in the class of shares noted. The chart uses total return NAV performance and assumes reinvestment of dividends and capital gains. Fund expenses, including management fees and other expenses were deducted.

CUMULATIVE PERFORMANCE (Initial Investment of $500,000)

ANNUAL AVERAGE TOTAL RETURN (%)

	1 Year	5 Year	10 Year
Institutional Class	6.05	1.99	2.85
Bloomberg U.S. Aggregate Bond Index	2.71	-0.40	1.35

*

The Fund’s past performance is not a good predictor of how the Fund will perform in the future.  The graph and table do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or redemption of Fund shares. Visit   https://angeloakcapital.com/investments/  for more recent performance information.

KEY FUND STATISTICS (as of July 31, 2026)

Net Assets	$2,501,155,649		Effective Duration	4.00 years
Number of Holdings	1,048		30-Day SEC Yield (Institutional Class)	6.58%
Net Advisory Fee	$11,098,585		30-Day SEC Yield Unsubsidized (Institutional Class)	6.58%
Portfolio Turnover	27%		Weighted Average Life	6.36 years
Average Credit Quality	BBB		Distribution Yield (Institutional Class)	5.54%