Corporate GovernanceJul 21, 2026, 07:47 AM
XFLT Replaces Sub-Adviser Octagon Due to 54.4% NAV Erosion
AI Summary
XAI Octagon Floating Rate & Alternative Income Trust (XFLT) announced the termination of its sub-adviser, Octagon Credit Investors, citing significant underperformance. The fund's net asset value (NAV) per share eroded by approximately 54.40% since inception, equivalent to about $406.7 million, and Octagon's CLOs experienced 7 debt tranche defaults in 2026. The Board unanimously selected King Street's Rockford Tower Asset Management as the new sub-adviser, highlighting King Street's extensive experience and $30 billion in assets under management. XFLT is urging shareholders to vote "FOR" the new sub-advisory agreement at a special meeting on July 30, 2026.
Key Highlights
- XFLT terminated sub-adviser Octagon Credit Investors due to poor performance.
- Fund's NAV per share declined approximately 54.40% since inception.
- This represents an approximate $406.7 million current-share-equivalent NAV erosion.
- Octagon CLOs defaulted on 7 debt tranches across 5 CLOs in 2026.
- Board unanimously selected King Street's Rockford Tower as new sub-adviser.
- King Street manages over $30 billion in assets and 29 CLOs globally.
- Shareholders are urged to vote "FOR" the King Street agreement on July 30, 2026.
Price Impact
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