XFLT Outlines Numerous Benefits of the King Street Sub-Adviser Proposal to Shareholders Ahead of Upcoming Proxy Vote

Rhea-AI Summary

XAI Floating Rate & Alternative Income Trust (NYSE:XFLT) announced that manager XA Investments is urging shareholders to approve a new sub-advisory agreement with Rockford Tower Asset Management (the King Street Sub-Adviser), a wholly owned subsidiary of King Street Capital Management, at a Special Meeting on July 30, 2026.

According to XAI, the proposed King Street Sub-Advisory Agreement is expected to offer potential for higher distributions and improved long-term performance, broader U.S. and European credit opportunities, and dynamic allocation within XFLT’s mandate, with no fee increase to shareholders. Shareholders are asked to vote “FOR” on the WHITE proxy card via internet, phone or mail.

Positive

• King Street sub-adviser proposal with no fee increase to shareholders
• Access to broader U.S. and European credit markets through the King Street Sub-Adviser
• Leverages King Street’s 30-year institutional track record in global credit investing
• Board formally urges shareholders to vote “FOR” the proposal, signaling unified support

Negative

• None.

News Market Reaction – XFLT

+1.58%

+1.58% Session close to close

In the Jul 20 session, XFLT gained 1.58%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

News 1077290 provides relevant context because XFLT's recent communications included recurring distr...

Analysis

News 1077290 provides relevant context because XFLT's recent communications included recurring distribution announcements. The proposal should be viewed alongside the contested vote, while relatively low short positioning is the sourced risk factor to watch.

Key Figures

Special meeting date: July 30, 2026 King Street track record: 30 years

2 metrics

Special meeting date July 30, 2026 King Street Sub-Advisory Agreement vote

King Street track record 30 years Institutional track record investing in U.S. and global credit markets

Historical Context

5 past events · Latest: Jul 09 (Negative)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jul 09	Proxy contest opposition	Negative	+0.5%	Octagon urged shareholders to reject the proposed King Street sub-adviser change.
Jul 01	Monthly distribution declaration	Positive	+0.8%	XFLT declared its unchanged monthly distribution of $0.225 per common share.
Jun 01	Monthly distribution declaration	Positive	+0.1%	XFLT declared another unchanged monthly distribution of $0.225 per common share.
May 20	Research tool launch	Positive	-0.2%	XA Investments launched YOGI for interval fund market research and product strategy.
May 05	Adviser appointment proposal	Positive	+1.1%	XAI proposed becoming adviser to the Evanston Capital alternative investment fund.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

XFLT's recent news reactions were generally positive, including during the ongoing sub-adviser proxy contest, although one positive operational announcement produced a negative reaction.

Key Terms

sub-advisory agreement, sub-adviser, proxy card, investment mandate

4 terms

sub-advisory agreement financial

"benefits of the proposed sub-advisory agreement among the Fund, XAI and Rockford Tower"

A sub-advisory agreement is a contract in which the primary investment manager of a fund or portfolio hires a separate, specialist firm to manage some or all of the assets. For investors this matters because it can change who actually makes trading and strategy decisions, how fees are split, and how performance and risk are handled—similar to a homeowner hiring a specialist contractor who may yield different results than the main builder.

sub-adviser financial

"Approval of the King Street Sub-Adviser will Potentially Enhance Distributions"

A sub-adviser is an outside investment manager that a fund or primary adviser hires to run all or part of a portfolio. Think of it as a specialist contractor brought in by a general contractor to handle a complex piece of a project: the sub-adviser brings specific expertise and makes trading and allocation decisions for the assets they oversee. Investors care because a sub-adviser’s skill, strategy, fees and potential conflicts directly affect returns, risk and transparency.

proxy card regulatory

"XFLT Asks Shareholders to Vote on the WHITE Proxy Card"

A proxy card is a document that allows shareholders to give someone else the authority to vote on their behalf at a company’s meeting. Think of it as a permission slip that ensures a shareholder’s interests are represented even if they cannot attend in person. For investors, proxy cards are important because they influence company decisions and governance, giving them a way to participate indirectly.

investment mandate financial

"within the investment mandate of XFLT"

A written set of rules and objectives that guides how money in a fund, portfolio, or account should be managed, covering goals, allowed investments, risk limits, time horizon, and performance benchmarks. It matters to investors because it acts like a blueprint for decision-making, telling managers what they can and cannot do, which affects expected returns, risk exposure, and how outcomes are measured.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Letter to XFLT Shareholders Makes the Choice Clear: The Approval of the King Street Sub-Adviser Will Potentially Enhance Distributions and Long-Term Performance With NO Fee Increase to Shareholders
Letter #3

XFLT Asks Shareholders to Vote on the WHITE Proxy Card “FOR” the King Street Sub-Advisory Agreement at Special Meeting on July 30, 2026

CHICAGO, July 20, 2026 (GLOBE NEWSWIRE) -- XA Investments LLC (“XAI”), manager of XAI Floating Rate & Alternative Income Trust (XFLT) (the “Fund”), published a letter to shareholders outlining the numerous benefits of the proposed sub-advisory agreement among the Fund, XAI and Rockford Tower Asset Management, L.L.C. (the “King Street Sub-Adviser”), a wholly owned subsidiary of King Street Capital Management, L.P. (“King Street”) (the “King Street Sub-Advisory Agreement”) at the upcoming Special Meeting of Shareholders on July 30, 2026.

XFLT shareholders should vote “FOR” the proposal on the WHITE proxy card because the approval of the King Street Sub-Advisory Agreement will provide:

• Potential for increased distributions and improved performance over time.
  
• Expanded investment opportunities in different parts of the U.S. and European credit markets.
  
• A qualified manager that is a wholly owned subsidiary of King Street, which has an institutional 30-year track record investing in the U.S. and global credit markets with investment professionals based in the U.S., London, Singapore and Dubai.
  
• Dynamic management between different and potentially new opportunities in the credit market in a timely manner within the investment mandate of XFLT.
  

The full letter is in the accompanying attachment and can be found on XA Investments’ website.

How to Vote

The Board urges XFLT shareholders to vote “FOR” the King Street Sub-Adviser on the WHITE Card. Use one of the following options to vote:

• By Internet: Visit the website listed on your WHITE proxy card, enter your control number and follow the simple on-screen instructions.
• By Phone: Call the toll-free number listed on your WHITE proxy card.
• By Mail: Sign and return the enclosed WHITE proxy card in the enclosed postage-paid envelope.
  

If you have any questions or need assistance voting your shares, please contact our proxy solicitation firm, Okapi Partners LLC, toll-free at (855) 305-0855 or by email at XAI@OkapiPartners.com.  

About XA Investments

XA Investments LLC is a Chicago-based firm founded by XMS Capital Partners in 2016. XAI serves as the investment adviser for two listed closed-end funds and an interval closed-end fund. In addition to investment advisory services, the firm also provides investment fund structuring and consulting services focused on registered closed-end funds to meet institutional client needs. XAI offers custom product build and consulting services, including product development and market research, marketing and fund management. XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. For more information, please visit www.xainvestments.com.

About King Street Capital Management

King Street is a global alternative investment firm founded in 1995 that manages $30 billion in assets across public and private markets. The firm marries rigorous fundamental research with tactical trading and differentiated sourcing capabilities to identify investment opportunities across asset classes, up and down the capital structure. For more information, please visit www.kingstreet.com. Follow King Street Capital Management on LinkedIn.

Forward-Looking Statements

This press release contains certain statements that may include “forward-looking statements.” Forward-looking statements can be identified by the words “may,” “will,” “intend,” “expect,” “estimate,” “continue,” “plan,” “anticipate,” and similar terms and the negatives of such terms. By their nature, all forward-looking statements involve risks and uncertainties, and actual results could differ materially from those contemplated by the forward-looking statements. Many factors that could materially affect the Fund’s actual results are the performance of the portfolio of securities held by the Fund, the conditions in the U.S. and international financial and other markets, the price at which Fund shares trade in the public markets and other factors. Although the Fund believes that the expectations expressed in such forward-looking statements are reasonable, actual results could differ materially from those expressed or implied in such forward-looking statements. The Fund’s future financial condition and results of operations, as well as any forward-looking statements, are subject to change and are subject to inherent risks and uncertainties. You are cautioned not to place undue reliance on these forward-looking statements, which are made as of the date of this press release. Except for the Fund’s ongoing obligations under the federal securities laws, the Fund does not intend, and the Fund undertakes no obligation, to update any forward-looking statement.

This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.

Past performance is no guarantee of future results. An investment in the Fund involves risk, including the possible loss of principal. Investors should consider the Fund’s investment objectives, risks, charges, and expenses carefully before investing. Please refer to the Fund’s filings with the Securities and Exchange Commission for additional information.

Media Contact: 

XA Investments LLC
Kim Shepherd
Senior Consultant
kshepherd@xainvestments.com
312-623-5123
www.xainvestments.com

Prosek Partners
Pro-XAI@Prosek.com

A PDF accompanying this announcement is available at http://ml.globenewswire.com/Resource/Download/5dcd22ff-13c5-491b-bf42-203b89d3f44f

FAQ

What is the King Street sub-adviser proposal for XFLT shareholders in July 2026?

The proposal asks XFLT shareholders to approve a sub-advisory agreement with Rockford Tower Asset Management, the King Street Sub-Adviser. According to XAI, this would add King Street’s credit expertise to managing XFLT’s portfolio, while keeping shareholder fees unchanged.

Does the XFLT King Street sub-advisory agreement increase fees for shareholders?

According to XAI, the proposed King Street Sub-Advisory Agreement will not increase fees for XFLT shareholders. The manager highlights that potential benefits, such as broader credit opportunities and dynamic allocation, are expected without raising the cost structure for investors.

When is the XFLT special meeting to vote on the King Street sub-adviser agreement?

The XFLT special meeting to vote on the King Street sub-adviser proposal is scheduled for July 30, 2026. According to XAI, shareholders are encouraged to vote “FOR” the agreement on the WHITE proxy card before or at this meeting date.

Who is the King Street Sub-Adviser proposed for XFLT (ticker XFLT)?

The proposed King Street Sub-Adviser is Rockford Tower Asset Management, a wholly owned subsidiary of King Street Capital Management. According to XAI, King Street has a roughly 30-year institutional track record in U.S. and global credit markets with professionals in several global offices.

How can XFLT shareholders vote on the King Street sub-advisory agreement?

XFLT shareholders can vote “FOR” the King Street Sub-Adviser using the WHITE proxy card by internet, phone, or mail. According to XAI, online and telephone options use the control number provided, while mail voting requires signing and returning the proxy card.

What potential benefits does XAI highlight from approving the King Street sub-adviser for XFLT?

According to XAI, approval could provide potential for higher distributions, improved long-term performance, and expanded U.S. and European credit opportunities. The manager also cites King Street’s experience and the ability to dynamically allocate across credit markets within XFLT’s investment mandate.