XAI Floating Rate & Alternative Income Trust terminates Octagon as sub-adviser, backs King Street replacement plan
XFLT•Board backs King Street replacement plan
XAI Floating Rate & Alternative Income Trust’s manager pressed shareholders to back a new King Street sub-advisory agreement ahead of a July 30, 2026 vote.
Board urges support to avoid uncertainty
The board urged votes in line with ISS support to avoid prolonged uncertainty over the fund’s sub-adviser.
Proxy fight framed as an alignment issue
XAI cast the proxy fight as an alignment issue, citing zero XFLT shares held by Octagon’s CEO and CIO versus XAI leadership holdings.
Octagon terminated over performance concerns
Octagon Credit Investors was terminated as sub-adviser for poor performance, including seven CLO defaults in 2026 across its portfolio.
