Octagon criticizes board-backed sub-adviser vote tied to liquidity plan
Octagon attacked a board-backed plan at XAI Floating Rate & Alternative Income Trust that ties a liquidity program to a new sub-advisory agreement vote.
The special shareholder meeting is set for July 30, 2026; Octagon urged investors to vote against the new sub-adviser proposal.
Octagon said the board is using contingent, partly cancelable tender offers to secure support for an unproven sub-adviser.
Octagon proposed cutting the management fee to 1.3% from 1.7%, citing potential savings and a narrower discount to NAV.
Octagon also pushed for a 10-year term structure, an unconditional 25% tender offer, and a shift to Octagon as primary adviser.
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