XFLT Proxy Vote: Octagon Leadership Is Not Aligned With Shareholders of XFLT
Rhea-AI Summary
Positive
- None.
Negative
- None.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jul 20 | Proxy strategy | Positive | +1.6% | Octagon outlined an alternative path forward for XFLT shareholders. |
| Jul 20 | Sub-adviser proposal | Positive | +1.6% | XAI highlighted benefits of the proposed King Street sub-advisory agreement. |
| Jul 17 | Proxy response | Negative | +1.6% | Octagon responded to claims made by XFLT’s Board during the proxy contest. |
| Jul 17 | Proxy contest | Negative | -1.7% | An overview described shareholder considerations in the ongoing XFLT proxy contest. |
| Jul 16 | Sub-adviser proposal | Positive | +0.2% | XFLT addressed shareholder benefits of the proposed sub-adviser change. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Recent proxy-related communications were generally followed by positive 24-hour changes, although one broader proxy-contest article coincided with a negative move.
Key Terms
sub-adviser financial
clo financial
proxy card regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
Octagon’s CEO and CIO Each Own ZERO XFLT Shares Despite Octagon Serving as Sub-Adviser for Nine Years
XAI Leadership Team Personally Owns 60x More Shares Than Octagon’s Leaders and Feels the Pain of Octagon’s Underperformance
Octagon Has Been Terminated for Poor Performance and Will Not Impact the Future of the Fund—Shareholders Will Bear the Consequences of Its Baffling Campaign
XFLT Asks Shareholders to Follow ISS’ Recommendation and Vote on the WHITE Proxy Card “FOR” the King Street Sub-Advisory Agreement Ahead of Special Meeting on July 30, 2026
CHICAGO, July 23, 2026 (GLOBE NEWSWIRE) -- XA Investments LLC (“XAI”), manager of XAI Floating Rate & Alternative Income Trust (XFLT) (the “Fund”), published a letter to XFLT shareholders asking: If Octagon’s own leaders have not been willing to invest alongside Fund shareholders, why should shareholders trust them with their investment?
XAI is fully aligned with shareholders. XAI’s Co-CEOs and President personally own 60x more shares than any leader at the terminated sub-adviser, Octagon Credit Investors. Further, XAI leadership continued to purchase shares and support the Fund, even as NAV eroded by
Octagon has been terminated for poor performance, evidenced by its track record, not just at XFLT, but across its own CLO portfolio, which has suffered an extraordinary seven CLO defaults in 2026 that wiped out entire classes of investors in those funds. There is no vote that will bring Octagon back.
Despite having no role in the future management of the Fund, they have decided to launch a disinformation campaign to plunge XFLT into limbo—leaving shareholders, not Octagon, to bear the consequences.
The Board urges shareholders to vote on the WHITE proxy card to approve 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, consistent with Institutional Shareholder Services’ recommendation that shareholders vote "FOR" the proposal.
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
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/57b286a6-8176-4d7e-a957-62db182b3d69
