Business UpdateJun 23, 2026, 06:16 AM
XAI Floating Rate Trust Proposes King Street as New Sub-Adviser
AI Summary
XAI Floating Rate & Alternative Income Trust (XFLT) is seeking shareholder approval for a new investment sub-advisory agreement with Rockford Tower Asset Management, L.L.C., a wholly-owned subsidiary of King Street Capital Management, L.P. The special meeting for this vote is scheduled for July 30, 2026. The Board of Trustees unanimously recommends approval, anticipating benefits such as expanded investment opportunities in European CLOs and asset-backed securities, and potential for increased distributions and improved performance. The Trust's investment objective and advisory fees will remain unchanged, with all proxy solicitation costs borne by XA Investments and King Street.
Key Highlights
- Shareholders to vote on new sub-advisory agreement with King Street Sub-Adviser on July 30, 2026.
- King Street Capital Management, parent of new sub-adviser, manages $30.0 billion in assets.
- New sub-adviser will expand investment opportunities to European CLOs and asset-backed securities.
- Trust's investment objective and principal policies will remain unchanged.
- Advisory fees paid by the Trust will not increase from 1.70% of Managed Assets.
- King Street Sub-Adviser's reimbursable expenses capped at 0.07% per annum of net assets.
- Board unanimously recommends approval, citing potential for increased distributions and performance.
Price Impact
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