XAI Floating Rate & Alternative Income Trust seeks shareholder backing for King Street sub-adviser switch after Octagon exit
XFLT•Interim risk if shareholders reject the deal
If shareholders reject the deal, King Street can serve up to 150 days on an interim basis, raising the risk of a prolonged manager search.
Board cites underperformance in replacing Octagon
The board replaced Octagon, citing persistent underperformance; XFLT lagged its benchmark by 19.09% over one year as of March 31, 2026.
NAV per share fell about 54% under Octagon, implying USD 406.7 million of NAV erosion on a current-share-equivalent basis.
Management fees would not rise; the trust would keep paying XA Investments a 1.7% advisory fee.
Shareholder vote set on new sub-adviser agreement
XAI Floating Rate & Alternative Income Trust set a July 30, 2026 shareholder vote on a new sub-advisory agreement with King Street’s Rockford Tower.
