PartnershipJul 30, 2026, 05:27 PM
XAI Octagon Trust Appoints King Street as Interim Sub-Adviser
AI Summary
XAI Octagon Floating Rate & Alternative Income Trust (XFLT) entered into an interim investment sub-advisory agreement with Rockford Tower Asset Management, L.L.C. (King Street Sub-Adviser), effective July 30, 2026. This follows the termination of the previous agreement with Octagon Credit Investors, LLC. The King Street Sub-Adviser, a subsidiary of King Street Capital Management ($30.0 billion AUM), will receive 52% of the advisory fee, while the Trust's investment objective and advisory fee rate remain unchanged. A special shareholder meeting to approve a new sub-advisory agreement has been adjourned to August 6, 2026.
Key Highlights
- Interim sub-advisory agreement with Rockford Tower Asset Management (King Street Sub-Adviser) effective July 30, 2026.
- Previous sub-advisory agreement with Octagon Credit Investors, LLC terminated.
- King Street Capital Management manages $30.0 billion in assets as of December 31, 2025.
- King Street Sub-Adviser to receive 52% of the advisory fee paid by the Trust to the Adviser.
- Trust's advisory fee rate remains 1.70% of average daily Managed Assets.
- Special shareholder meeting adjourned to August 6, 2026, to approve new sub-advisory agreement.
- Interim agreement terminates upon earlier of 150 days or new agreement approval.
- Reimbursable expenses capped at 0.07% per annum of average daily net assets.
Price Impact
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