Octagon urges XFLT shareholders to reject sub-adviser switch, calls for management fee cut to 1.3%
XFLT•Fee cut proposal and discount actions
Octagon proposed cutting the management fee to 1.3% from 1.7%, paired with actions to narrow the discount to NAV.
It urged shareholders to vote against the new sub-adviser, pushing Octagon as primary adviser to reduce disruption.
Octagon escalates campaign against board
Octagon escalated its campaign against XAI Floating Rate & Alternative Income Trust’s board over a proposed sub-adviser change.
The firm argued the fund has delivered about 40% total NAV return since inception, criticizing the board’s focus on a NAV measure excluding distributions.
It said ISS called the board’s process “not unreasonable” and “not indefensible,” without backing the adviser switch as a value-creation step.
