XAI Octagon FR & Alternative Inc Trust Stock Price, News & Analysis

XA Investments reports strong growth in non-listed closed-end funds (CEFs) during Q1 2025. The market reached a new peak with 270 interval and tender offer funds, managing total assets of $220 billion. The quarter saw 14 new fund launches, up from 10 in Q1 2024, with market-wide net assets increasing by $9 billion.

Key highlights include the launch of the XAI Interval Fund Index™ (INTVL), the first index tracking the interval and tender offer fund market. The market now comprises 134 interval funds ($132.1B in managed assets) and 136 tender offer funds ($88.3B). In 2024, funds recorded positive net flows of over $38 billion, with 67% of funds showing positive performance. Private Credit funds led capital raising with over $20 billion in net assets.

The sector shows continued momentum with 58 funds in SEC registration, representing a 53% increase in new filings compared to Q1 2024. Notably, 49% of interval and tender offer funds have no suitability restrictions for investors at the fund level.

XA Investments has launched the XAI Interval Fund Index (INTVL), the first-ever index tracking the interval and tender offer fund market. The total return index monitors funds registered under the Investment Company Act of 1940 with assets exceeding $100 million.

As of March 2025, the Index includes 77 constituents representing over $103 billion in total net assets, approximately 60% of the entire interval and tender offer fund market. INTVL features funds across seven asset classes: credit, real estate/real assets, hedge funds, specialty, multi-asset, tax-free bonds, and venture/private equity.

The Index, which has a January 2023 base date with two years of historical performance, is calculated daily and rebalanced quarterly. Indxx, Inc. serves as the index calculation agent. The index is available on Bloomberg under the ticker INTVL.

XAI Octagon Floating Rate & Alternative Income Trust (XFLT) has announced its quarterly preferred shares dividend of $0.40625 per share for its 6.50% Series 2026 Term Preferred Shares (XFLTPRA). The dividend will be paid on April 30, 2025, with an ex-dividend and record date of April 14, 2025.

The Trust maintains its focus on generating stable monthly distributions while investing primarily in floating rate credit instruments and structured credit investments, comprising at least 80% of its Managed Assets under normal market conditions. The Trust's distributions may exceed net investment income, potentially resulting in a return of capital to shareholders.

XAI Octagon Floating Rate & Alternative Income Trust (XFLT) has announced its monthly distribution of $0.077 per common share, maintaining the same amount as the previous month. The distribution will be payable on May 1, 2025, to shareholders of record as of April 15, 2025.

The Trust, which focuses on generating attractive total returns with emphasis on income across credit cycles, invests primarily in floating rate credit instruments and structured credit investments. Under normal conditions, at least 80% of its Managed Assets are allocated to these instruments.

Important to note that distributions may come from various sources including net investment income, capital gains, or return of capital. The specific tax characteristics will be reported on Form 1099 after the 2025 calendar year ends. The Trust is subject to a 4% excise tax if it doesn't distribute at least 98% of ordinary income and 98.2% of capital gains annually.

XAI Octagon Floating Rate & Alternative Income Trust (NYSE: XFLT) has announced its monthly distribution of $0.077 per share for common shareholders, maintaining the same amount as the previous month. The distribution is payable on April 1, 2025, with a record date of March 17, 2025.

The Trust aims to generate attractive total returns with an emphasis on income generation across credit cycles. Under normal market conditions, it invests at least 80% of its Managed Assets in floating rate credit instruments and structured credit investments. The distributions may come from net investment income, capital gains, or return of capital, with specific tax characteristics to be reported on Form 1099.

The Trust is subject to a 4% excise tax if it doesn't distribute at least 98% of ordinary income and 98.2% of capital gains (adjusted for losses) to shareholders within specified timeframes. Distributions are subject to Board approval and various compliance requirements.

XAI Madison Equity Premium Income Fund (MCN) has announced its quarterly distribution of $0.18 per share, maintaining the same amount as the previous quarter. The distribution is payable on April 1, 2025, to shareholders of record as of March 17, 2025.

In a significant change, the Fund will transition from quarterly to monthly distributions, with the first monthly declaration scheduled for April 1, 2025, and the first distribution on May 1, 2025. According to Kimberly Flynn, President of XA Investments, this change aims to help investors better manage their cashflow needs.

The Fund's primary objective is to achieve high current income and gains, with capital appreciation as a secondary goal. This is pursued through a portfolio of common stocks and an option strategy, primarily writing covered call options to generate income from premiums and dividends.

XAI Octagon Floating Rate & Alternative Income Trust (NYSE: XFLT) has announced a Quarterly Webinar scheduled for March 5, 2025, at 11:00 am Eastern Time. The webinar will feature a Q&A session moderated by Kevin Davis, Managing Director at XAI, with participation from Kimberly Flynn, President at XAI, and Lauren Law, Senior Portfolio Manager at Octagon Credit Investors.

The Trust's investment objective focuses on achieving attractive total return with an emphasis on income generation across credit cycle stages. Under normal market conditions, the Trust maintains at least 80% of its Managed Assets in floating rate credit instruments and structured credit investments. The Trust's common shares trade under XFLT on NYSE, while its 6.50% Series 2026 Term Preferred Shares trade under XFLTPRA.

XAI Octagon Floating Rate & Alternative Income Trust (XFLT) has announced its monthly distribution of $0.077 per share, maintaining the same amount as the previous month. The distribution will be payable on March 3, 2025, to shareholders of record as of February 18, 2025.

The Trust, which focuses on generating attractive total returns with emphasis on income across credit cycles, invests at least 80% of its Managed Assets in floating rate credit instruments and structured credit investments under normal market conditions. Distributions may come from net investment income, capital gains, or return of capital, with specific tax characteristics to be reported on Form 1099 after the 2025 calendar year.

The Trust is subject to a 4% excise tax if it doesn't distribute at least 98% of ordinary income and 98.2% of capital gains annually. Distributions might exceed net investment income, potentially resulting in a return of capital to shareholders.

XA Investments has released its Non-Listed Closed-End Funds Q4 2024 Market Update, revealing record growth in the sector. The non-listed CEF market reached new heights with 257 interval and tender offer funds, managing total assets of $208 billion, including leverage, as of December 31, 2024.

The market saw 50 new fund launches in 2024, up from 28 in 2023, with market-wide net assets increasing by $37 billion. The space now includes 124 interval funds ($124.3 billion in managed assets) and 133 tender offer funds ($83.3 billion). The number of unique fund sponsors grew to 146, with 24 new entrants in 2024.

Notable successes include Brookfield Infrastructure Fund and Hamilton Lane Private Assets Fund, each exceeding $1 billion in flows. The market shows strong momentum with 53 funds in SEC registration at year-end, following a record 80 new SEC filings in 2024, a 73% increase from 2023.