An investment in a Fund is subject to investment risk, including the possible loss of your entire investment. There can be no assurance that a Fund’s investment objectives will be achieved.
XFLT is a listed closed-end fund and shares of listed closed-end management investment companies frequently trade at a discount from their net asset value, which is a risk separate and distinct from the risk that the fund's net asset value could decrease as a result of its investment activities. XFLT invests primarily in below investment grade instruments, which are commonly referred to as “high yield” securities or “junk” bonds. Investments in below investment grade securities are considered predominantly speculative with respect to the issuer’s capacity to pay interest and repay principal when due and such issuers are not perceived as strong financially, relative to those with higher credit ratings. XFLT invests a significant portion of its assets in CLO debt and CLO equity, which often involve risks that are different from or more acute than risks associated with other types of credit instruments. For more detailed information on the specific risks associated with XFLT, please view the Risks.
XOCT is a newly-organized, diversified, closed-end management investment company with no history of operations. As a result, investors have no track record or operational history upon which to base their investment decision. XOCT is a non-listed closed-end fund and will have limited liquidity prior to a Listing Event.
Prior to the occurrence of a Listing Event, XOCT common shares will not be listed for trading on any securities exchange. XOCT common shares will not be redeemable at a shareholder’s option. Accordingly: no secondary market for XOCT common shares is expected to exist prior to a Listing Event; your investment in XOCT common shares should be considered illiquid; you should not expect to be able to sell your common shares regardless of how XOCT performs and, as a result, you may be unable to reduce your exposure during any market downturn; and if you are able to sell your XOCT common shares, you may receive more or less than your original investment. You should consider that you may not have access to the money you invest until the occurrence of a Listing Event, and may never recover your entire initial investment in XOCT. XOCT is designed primarily for long-term investors who are prepared to hold common shares for an indeterminate time. An investment in XOCT common shares is appropriate only for investors who can tolerate a high degree of risk and do not require a liquid investment and is not suitable for investors who need access to the money they invest.
There can be no assurance as to whether, or at what time, XOCT will complete a Listing Event. XOCT intends to invest primarily in CLO debt and CLO equity, which often involve risks that are different from or more acute than risks associated with other types of credit instruments. For more detailed information on the specific risks associated with XOCT, please view the Risks.
1Thomson Reuters LPC, 2015/2016/2017/2018, ranked by issuance volume in each calendar year.
2The information herein with respect to XOCT and in the XOCT preliminary prospectus is not complete and may be amended or changed. A registration statement relating to the XOCT securities has been filed with the Securities and Exchange Commission, but is not yet effective. The XOCT securities may not be sold until the registration statement is effective. These materials not an offer to sell XOCT securities and is not soliciting an offer to buy XOCT securities in any jurisdiction where the offer or sale is not permitted. This is not an offering, which can only be made by a final prospectus.