Corporate GovernanceJul 16, 2026, 09:11 AM
XFLT Urges Vote FOR King Street Sub-Adviser, Cites Octagon's -54% NAV Drop
AI Summary
XAI Octagon Floating Rate & Alternative Income Trust (XFLT) has published letters and a presentation urging shareholders to approve a new sub-advisory agreement with King Street Capital Management. This follows the termination of Octagon Credit Investors due to a -54% NAV reduction since the Fund's inception. The Board believes King Street will maximize the Fund's potential for increased distributions and improved performance without additional fees. Shareholders are asked to vote "FOR" the proposal at the Special Meeting on July 30, 2026.
Key Highlights
- XFLT published letters and presentation addressing misstatements by terminated sub-adviser Octagon Credit Investors.
- Octagon Credit Investors was terminated due to a -54% NAV reduction since the Fund's inception.
- Fund asks shareholders to vote on the WHITE Proxy Card "FOR" the King Street Sub-Advisory Agreement.
- Special Meeting of Shareholders is scheduled for July 30, 2026.
- King Street Sub-Adviser was selected for its CLO business strength and ability to improve performance.
- The new agreement offers potential for increased distributions and enhanced performance with no fee increases.
Price Impact
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