News
XAI Octagon Floating Rate & Alternative Income Term Trust Announces Private Placement of Convertible Preferred Shares
CHICAGO, Illinois – November 7, 2023 – XAI Octagon Floating Rate & Alternative Income Term Trust (the “Trust”) (NYSE: XFLT), a diversified, closed-end management investment company with an investment objective to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle, has entered into a Purchase Agreement with certain institutional investors for the purchase and sale of 1,200,000 shares of the Trust’s 6.95% Series 2029 Convertible Preferred Shares due June 2029 (the “Convertible Preferred Shares”), liquidation preference $25.00 per share. The Trust expects to receive net proceeds (before expenses) from the sale of the Convertible Preferred Shares of approximately $27.9 million. Pursuant to the Purchase Agreement, the investors have agreed to purchase the Convertible Preferred Shares, at one or more closings on or before May 6, 2025, as determined by the Trust in its discretion.
The Convertible Preferred Shares pay a quarterly dividend at a fixed annual rate of 6.95% of the liquidation preference, or $1.7375 per share, per year.”
The Trust is required to redeem, out of funds legally available therefor, all outstanding Convertible Preferred Shares on June 30, 2029, or the “Term Redemption Date,” at a price equal to the liquidation preference plus an amount equal to accumulated but unpaid dividends and distributions, if any, on such shares (whether or not earned or declared, but excluding interest on such dividends) to, but excluding, the Term Redemption Date.
At any time on or after the date eighteen months after the first issuance of Convertible Preferred Shares, at the Trust’s sole option, the Trust may redeem, from time to time, the Convertible Preferred Shares in whole or in part, out of funds legally available for such redemption, at a price per share equal to the sum of the liquidation preference plus an amount equal to accumulated but unpaid dividends, if any, on such shares (whether or not earned or declared, but excluding interest on such dividends) to, but excluding, the date fixed for such redemption.
Each holder of a Convertible Preferred Share shall have the right, at such holder’s option, to convert any such Convertible Preferred Share, at any time on or after the date six months after the issuance date of the Convertible Preferred Share (the “Convertibility Date”) and prior to the close of business on the business day immediately preceding the Term Redemption Date, into such number of common shares of beneficial interest (“Common Shares”) equal to the liquidation preference of the Convertible Preferred Share plus an amount equal to all unpaid dividends and distributions on such Share accumulated to (but excluding) the date of exercise, divided by the Conversion Price. The “Conversion Price” is the greater of (i) the market price per Common Share, represented by the five-day volume-weighted average price (“VWAP”) per Common Share ending on the trading day immediately preceding the date of exercise, or (ii) the Trust’s most recently reported net asset value per Common Share immediately prior to the date of exercise.
The Convertible Preferred Shares will not be listed on any exchange and may not be transferred without the consent of the Trust.
Additional information regarding the Convertible Preferred Shares are included in a Current Report on Form 8-K to be filed with the U.S. Securities and Exchange Commission (“SEC”).
The Convertible Preferred Shares were offered directly to the purchasers without a placement agent, underwriter, broker or dealer.
The Convertible Preferred Shares and the Common Shares into which the Convertible Preferred Shares are convertible are being issued in reliance upon an exemption from registration under the Securities Act of 1933 (the “Securities Act”) and have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration with the SEC or an applicable exemption from such registration requirements.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy the Convertible Preferred Shares, nor shall there be any sale of Convertible Preferred Shares in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such jurisdiction.
About XA Investments
XA Investments LLC (“XAI”) serves as the Trust’s investment adviser. XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory services, the firm also provides investment fund structuring and consulting services focused on registered closed-end funds to meet institutional client needs. XAI offers custom product build and consulting services, including development and market research, sales, marketing, fund management and administration. XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. XAI provides individual investors with access to institutional-caliber alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent financial services firm providing M&A, corporate advisory and asset management services to clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC (“Octagon”) serves as the Trust’s investment sub-adviser. Octagon is a 25+ year old, $34.5B below-investment grade corporate credit investment adviser focused on leveraged loan, high yield bond and structured credit (CLO debt and equity) investments. Through fundamental credit analysis and active portfolio management, Octagon’s investment team identifies attractive relative value opportunities across below-investment grade asset classes, sectors and issuers. Octagon’s investment philosophy and methodology encourage and rely upon dynamic internal communication to manage portfolio risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach in its effort to generate attractive risk-adjusted returns for its investors. For more information, please visit www.octagoncredit.com.
The Trust, XAI and Octagon do not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
This press release contains certain statements that may include “forward-looking statements.” Forward-looking statements can be identified by the words “may,” “will,” “intend,” “expect,” “estimate,” “continue,” “plan,” “anticipate,” and similar terms and the negatives of such terms. By their nature, all forward-looking statements involve risks and uncertainties, and actual results could differ materially from those contemplated by the forward-looking statements. Many factors that could materially affect the Trust’s actual results are the performance of the portfolio of securities held by the Trust, the conditions in the U.S. and international financial and other markets, the price at which Preferred Shares trade in the public markets and other factors discussed in the Trust’s prospectus supplement and accompanying base prospectus and to be discussed in the Trust’s periodic filings with the SEC.
Although the Trust believes that the expectations expressed in such forward-looking statements are reasonable, actual results could differ materially from those expressed or implied in such forward-looking statements. The Trust’s future financial condition and results of operations, as well as any forward-looking statements, are subject to change and are subject to inherent risks and uncertainties. You are cautioned not to place undue reliance on these forward-looking statements, which are made as of the date of this press release. Except for the Trust’s ongoing obligations under the federal securities laws, the Trust does not intend, and the Trust undertakes no obligation, to update any forward-looking statement.
Company Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 1-888-903-3358
Email: info@xainvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Announces Board Approval of Proposal to Become Perpetual Fund and New Sub-Advisory Agreement with Octagon Credit Investors
CHICAGO, October 26, 2023 – XAI Octagon Floating Rate & Alternative Income Term Trust (the “Trust”) (NYSE: XFLT), announced that the Trust’s Board of Trustees (the “Board”) has unanimously approved a proposal to eliminate the Trust’s termination date of December 31, 2029. The proposal, if approved by shareholders, will amend the Trust’s Second Amended and Restated Declaration of Trust and make the Trust perpetual (the “Term Amendment”).
Greg Dingens, an Independent Trustee and the Chair of the Board noted, “We voted in favor of the proposal, which will allow the Trust to continue to operate as it has since inception. The Board believes that eliminating the Trust’s termination date is in the best interest of shareholders and will allow the Trust to seek continued growth of its common share base as a perpetual fund over time.”
Additionally, the Board unanimously approved a new sub-advisory agreement among Octagon Credit Investors, LLC (“Octagon”), the Trust and XA Investments LLC (“XAI”). Octagon’s parent company, Conning Holdings Limited1, recently announced its acquisition by Generali Investment Holdings, an entity comprising the majority of asset management activities of Generali Group (“Generali”). Founded in 1831, Generali is among the largest financial services complexes worldwide with managed assets in excess of €500 billion. Generali operates in over 50 countries with over 80,000 employees.
The closing of the transaction is not expected to result in any change in the portfolio management of the Trust or in the Trust’s investment objectives or policies. The closing of the transaction is expected to occur during the first half of 2024. The transaction will constitute an “assignment” of the current sub-advisory agreement among the Trust, XAI and Octagon, causing the current agreement to terminate according to its terms, and necessitating approval of the new sub-advisory agreement (the “New Octagon Agreement”). In addition, to avoid any interruption of investment sub-advisory services if the closing of the transaction occurs prior to the receipt of shareholder approval of the New Octagon Agreement, the Board unanimously approved an interim investment sub-advisory agreement with Octagon, which would be effective upon the closing of the transaction and remain in effect for a maximum period of 150 days.
“We are excited for the next phase of Octagon's growth and are pleased to continue serving XFLT shareholders in the years to come,” commented Gretchen Lam, Senior Portfolio Manager at Octagon.
1 Conning, Inc., Octagon Credit Investors, LLC, Global Evolution Holding ApS and its group of companies (“Global Evolution”), Goodwin Capital Advisers, Inc., Pearlmark Real Estate, LLC, Conning Investment Products, Inc., Conning Asset Management Limited, and Conning Asia Pacific Limited are all direct or indirect subsidiaries of Conning Holdings Limited (collectively, “Conning”) which is one of the family of companies owned by Cathay Financial Holding Co., Ltd., a Taiwan-based company.
The Term Amendment and the New Octagon Agreement (together, the “Proposals”) are subject to approval by the Trust’s shareholders. The Board approved submitting each Proposal to the Trust’s shareholders for approval at a special meeting of shareholders, expected to be held on December 19, 2023. Shareholders of record at the close of business on October 25, 2023 are entitled to vote at the meeting.
In connection with the solicitation of proxies to approve the Proposals, Trust will file a proxy statement relating to the Proposals with the Securities and Exchange Commission (“SEC”). Because the proxy statement will contain important information about the Proposals, including the expected benefits and potential risks, the Trust’s shareholders are urged to read the proxy statement and accompanying materials carefully when they receive them. When filed with the SEC, the proxy statement will be available free of charge at the SEC’s website, www.sec.gov. This press release is not a solicitation of any proxy.
The Trust’s shareholders will be able to obtain copies of the definitive proxy statement and accompanying materials, when available, by calling the Trust’s proxy agent toll-free at (800) 431-9645.
About XA Investments
XA Investments LLC (“XAI”) serves as the Trust’s investment adviser. XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory services, the firm also provides investment fund structuring and consulting services focused on registered closed-end funds to meet institutional client needs. XAI offers custom product build and consulting services, including development and market research, sales, marketing, fund management and administration. XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. XAI provides individual investors with access to institutional-caliber alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent financial services firm providing M&A, corporate advisory and asset management services to clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC (“Octagon”) serves as the Trust’s investment sub-adviser. Octagon is a 25+ year old, $34.5B below-investment grade corporate credit investment adviser focused on leveraged loan, high yield bond and structured credit (CLO debt and equity) investments. Through fundamental credit analysis and active portfolio management, Octagon’s investment team identifies attractive relative value opportunities across below-investment grade asset classes, sectors and issuers. Octagon’s investment philosophy and methodology encourage and rely upon dynamic internal communication to manage portfolio risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach in its effort to generate attractive risk-adjusted returns for its investors. For more information, please visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust’s webpage at www.xainvestments.com
The Trust, XAI and Octagon and certain of their respective directors/trustees, officers and affiliates may be deemed under the rules of the SEC to be participants in the solicitation of proxies from shareholders in connection with the matter described above. Information about the trustees and officers of the Trust may be found in the Fund’s annual report to shareholders and annual proxy statement previously filed with the SEC.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
This press release contains certain statements that may include “forward-looking statements.” Forward-looking statements can be identified by the words “may,” “will,” “intend,” “expect,” “estimate,” “continue,” “plan,” “anticipate,” and similar terms and the negatives of such terms. By their nature, all forward-looking statements involve risks and uncertainties, and actual results could differ materially from those contemplated by the forward-looking statements. Many factors that could materially affect the Trust’s actual results are the performance of the portfolio of securities held by the Trust, the conditions in the U.S. and international financial and other markets, the price at which the Trust’s shares trade in the public markets and other factors discussed in the Trust’s annual and semi-annual reports filed with the SEC.
Although the Trust believes that the expectations expressed in such forward-looking statements are reasonable, actual results could differ materially from those expressed or implied in such forward-looking statements. The Trust’s future financial condition and results of operations, as well as any forward-looking statements, are subject to change and are subject to inherent risks and uncertainties. You are cautioned not to place undue reliance on these forward-looking statements, which are made as of the date of this press release. Except for the Trust’s ongoing obligations under the federal securities laws, the Trust does not intend, and the Trust undertakes no obligation, to update any forward-looking statement.
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 1-888-903-3358
Email: info@xainvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Reaches $500 Million Total Managed Assets Milestone
September 20, 2023, Chicago – XA Investments (“XAI”), a Chicago-based alternative asset manager, is pleased to announce that the XAI Octagon Floating Rate & Alternative Income Term Trust (NYSE: XFLT, the “Trust”) has surpassed $500 million in total managed assets. The Trust launched in September 2017 with $82 million in common assets and has executed several accretive follow-on equity offerings in addition to an “at-the-market” offering program, fueling unparalleled asset growth compared to broader listed closed-end funds.
XFLT provides investors access to income-producing securities including senior loans, collateralized loan obligation (“CLO”) debt and CLO equity. The Trust’s investment objective is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. Kimberly Flynn, Managing Director at XAI noted, “We believe the Trust is uniquely positioned in the listed closed-end fund marketplace with its strategic investment mix of income-producing securities including loans and CLO investments. The Trust’s asset mix is designed to seek enhanced risk-adjusted returns over time.”
Ted Brombach, Co-CEO of XAI also noted, “We are pleased with the strong asset growth we’ve observed in this Trust and its reception among institutional investors, financial advisors and other income-oriented investors. Octagon Credit Investors is a recognized leader in the CLO marketplace and as such the Trust has developed a loyal investor base. Our investor relations and marketing team has prioritized investor education efforts on the CLO market, which we believe has supported the Trust’s growth over time.”
Gretchen Lam, Senior Portfolio Manager at Octagon, commented, “We are pleased to reach this milestone, which we believe underscores the resiliency of the loan and CLO markets, and the strength of the Trust’s investment strategy. We thank the shareholders for their confidence, and we are excited for the next phase of the Trust’s growth. We look forward to further serving a broader investor base with additional institutional strategies that leverage Octagon’s core competencies.”
There can be no assurance that the Trust will achieve its investment objective. The Trust pays regular monthly distributions based on GAAP earnings. The Trust’s common shares are traded on the New York Stock Exchange under the symbol “XFLT,” and the Trust’s 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol “XFLTPRA.”
About XA Investments
XA Investments LLC (“XAI”) serves as the Trust’s investment adviser. XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory services, the firm also provides investment fund structuring and consulting services focused on registered closed-end funds to meet institutional client needs. XAI offers custom product build and consulting services, including development and market research, sales, marketing, fund management and administration. XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. XAI provides individual investors with access to institutional-caliber alternative managers. For more information, please visitwww.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services firm providing M&A, corporate advisory and asset management services to clients. It has offices in Chicago, Boston and London. For more information, please visitwww.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC (“Octagon”) serves as the Trust’s investment sub-adviser. Octagon is a 25+ year old, $34.5B below-investment grade corporate credit investment adviser focused on leveraged loan, high yield bond and structured credit (CLO debt and equity) investments. Through fundamental credit analysis and active portfolio management, Octagon’s investment team identifies attractive relative value opportunities across below-investment grade asset classes, sectors and issuers. Octagon’s investment philosophy and methodology encourage and rely upon dynamic internal communication to manage portfolio risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach in its effort to generate attractive risk-adjusted returns for its investors. For more information, please visitwww.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Steven Perry, Vice President
XA Investments LLC
Phone: 312-374-6933
Email: SPerry@XAInvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Will Host Q2 2023 Quarterly Webinar on August 22, 2023
August 10, 2023, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust (NYSE: XFLT) (the "Trust") today announced that it plans to host the Trust's Quarterly Webinar on August 22, 2023 at 11:00 am (Eastern Time). Kimberly Flynn, Managing Director at XA Investments ("XAI") will moderate the Q&A style webinar with Steven Perry, Vice President at XAI, and Gretchen Lam, Senior Portfolio Manager at Octagon Credit Investors.
TO JOIN VIA WEB: Please go to the Knowledge Bank section of xainvestments.com or click here to find the online registration link.
TO USE YOUR TELEPHONE: After joining via web, if you prefer to use your phone for audio, you must select that option and call in using a number below, based on your current location.
Dial: (312) 626-6799 or (267) 831-0333 or (646) 558-8656 or (213) 338-8477 or (720)
928-9299
Webinar ID: 896 3166 0172
Passcode: 610541
REPLAY: A replay of the webinar will be available in the Knowledge Bank section of xainvestments.com or through the same registration link previously used.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT," and the Trust's 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol "XFLTPRA."
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory services, the firm also provides investment fund structuring and consulting services focused on registered closed-end funds to meet institutional client needs. XAI offers custom product build and consulting services, including development and market research, sales, marketing, fund management and administration. XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. XAI provides individual investors with access to institutional-caliber alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services firm providing M&A, corporate advisory and asset management services to clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser. Octagon is a 25+ year old, $34.5B below-investment grade corporate credit investment adviser focused on leveraged loan, high yield bond and structured credit (CLO debt and equity) investments. Through fundamental credit analysis and active portfolio management, Octagon's investment team identifies attractive relative value opportunities across below-investment grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology encourage and rely upon dynamic internal communication to manage portfolio risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach in its effort to generate attractive risk-adjusted returns for its investors. For more information, please visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Steven Perry, Vice President
XA Investments LLC
Phone: 312-374-6933
Email: SPerry@XAInvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Common Shares Distribution of $0.085 per Share
August 1, 2023, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.085 per share on the Trust's common shares (NYSE: XFLT), payable on September 1, 2023, to common shareholders of record as of August 15, 2023, as noted below. The amount of the distribution represents no change from the previous month's distribution amount of $0.085 per share.
The following dates apply to the declaration:
Ex-Dividend Date | August 14, 2023 | |
Record Date | August 15, 2023 | |
Payable Date | September 1, 2023 | |
Amount | $0.085 per common share | |
Change from Previous Month | No change |
Common share distributions may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2023 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The Trust's net investment income and capital gain can vary significantly over time; however, the Trust seeks to maintain more stable common share monthly distributions over time. The Trust's investments in CLOs are subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States ("U.S. GAAP"), and, as a result, there may be significant differences between the Trust's GAAP income and its taxable income. The Trust's final taxable income for the current fiscal year will not be known until the Trust's tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute to common shareholders by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Trust's fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The common share distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder's tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder's potential gain, or reduce the common shareholder's potential loss, on any subsequent sale or other disposition of common shares.
The distribution shall be paid on the Payment Date unless the payment of such distribution is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern, or to comply with the applicable terms or financial covenants of the Trust's senior securities.
Future common share distributions will be made if and when declared by the Trust's Board of Trustees, based on a consideration of number of factors, including the Trust's continued compliance with terms and financial covenants of its senior securities, the Trust's net investment income, financial performance and available cash. There can be no assurance that the amount or timing of common share distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of common share distributions in the future.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT," and the Trust's 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol "XFLTPRA".
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based
firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory
services, the firm also provides investment fund structuring and consulting services focused
on registered closed-end funds to meet institutional client needs. XAI offers custom product
build and consulting services, including development and market research, sales, marketing,
fund management and administration. XAI believes that the investing public can benefit from
new vehicles to access a broad range of alternative investment strategies and managers. XAI
provides individual investors with access to institutional-caliber alternative managers. For
more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services
firm providing M&A, corporate advisory and asset management services to clients. It has
offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser.
Octagon is a 25+ year old, $34.7B below-investment grade corporate credit investment adviser
focused on leveraged loan, high yield bond and structured credit (CLO debt and equity)
investments. Through fundamental credit analysis and active portfolio management, Octagon's
investment team identifies attractive relative value opportunities across below-investment
grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology
encourage and rely upon dynamic internal communication to manage portfolio risk. Over its
history, the firm has applied a disciplined, repeatable and scalable approach in its effort
to generate attractive risk-adjusted returns for its investors. For more information, please
visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE |
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Common Shares Distribution and Quarterly Preferred Shares Dividend
July 3, 2023, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.085 per share of the Trust's common shares (NYSE: XFLT). The Trust also declared preferred dividends for the quarter of $0.40625 per share of the Trust's 6.50% Series 2026 Term Preferred Shares (NYSE: XFLTPRA).
The following dates apply to the declaration:
Share Class | Ex-Dividend Date | Record Date | Payable Date | Amount | Change from Previous Declaration |
---|---|---|---|---|---|
XFLT | July 14, 2023 | July 17, 2023 | August 1, 2023 | $0.085 | No Change |
XFLTPRA | July 14, 2023 | July 17, 2023 | July 31, 2023 | $0.40625 | No Change1 |
1 The Trust's 6.50% Series 2026 Term Preferred Shares dividend is calculated based on the preferred shares Liquidation Preference of $25.00 per share and the fixed dividend rate of 6.50%.
Common share distributions may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2023 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The Trust's net investment income and capital gain can vary significantly over time; however, the Trust seeks to maintain more stable common share monthly distributions over time. The Trust's investments in CLOs are subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States ("U.S. GAAP"), and, as a result, there may be significant differences between the Trust's GAAP income and its taxable income. The Trust's final taxable income for the current fiscal year will not be known until the Trust's tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute to common shareholders by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on January 31 of the calendar year (unless an election is made to use the Trust's fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The common share distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder's tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder's potential gain, or reduce the common shareholder's potential loss, on any subsequent sale or other disposition of common shares.
Preferred shareholders are entitled to receive cumulative cash dividends and distributions on the Trust's 6.50% Series 2026 Term Preferred Shares, when, as and if declared by, or under authority granted by, the Board of Trustees of the Trust out of funds legally available for distribution and in preference to dividends and distributions on common shares. If the Trust is unable to distribute the full dividend amount due in a dividend period on the Trust's 6.50% Series 2026 Term Preferred Shares, the dividends will be distributed on a pro rata basis among the preferred shareholders.
Distributions and dividends shall be paid on the Payable Date listed above unless the payment of such distribution or dividend is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law, to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern or, with regard to the Trust's regular monthly distribution to common shareholders, to comply with the applicable terms or financial covenants of the Trust's senior securities.
Future common share distributions will be made if and when declared by the Trust's Board of Trustees, based on a consideration of number of factors, including the Trust's continued compliance with terms and financial covenants of its senior securities, the Trust's net investment income, financial performance and available cash. There can be no assurance that the amount or timing of common share distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of common share distributions in the future.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT," and the Trust's 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol "XFLTPRA".
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based
firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory
services, the firm also provides investment fund structuring and consulting services focused
on registered closed-end funds to meet institutional client needs. XAI offers custom product
build and consulting services, including development and market research, sales, marketing,
fund management and administration. XAI believes that the investing public can benefit from
new vehicles to access a broad range of alternative investment strategies and managers. XAI
provides individual investors with access to institutional-caliber alternative managers. For
more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services
firm providing M&A, corporate advisory and asset management services to clients. It has
offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser.
Octagon is a 25+ year old, $34.5B below-investment grade corporate credit investment adviser
focused on leveraged loan, high yield bond and structured credit (CLO debt and equity)
investments. Through fundamental credit analysis and active portfolio management, Octagon's
investment team identifies attractive relative value opportunities across below-investment
grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology
encourage and rely upon dynamic internal communication to manage portfolio risk. Over its
history, the firm has applied a disciplined, repeatable and scalable approach in its effort
to generate attractive risk-adjusted returns for its investors. For more information, please
visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE |
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
FundFire Alts Observes Higher Leverage Levels in Credit Interval Funds
In a recent article, Tom Stabile of FundFire Alts examines leverage trends among private credit interval funds. The article, "Leverage or No Leverage? Split Widens Among Credit Interval Funds," highlights the variation in leverage levels across funds. The article features insights from Kimberly Flynn, Manager Director of Alternative Investments at XA Investments.
As recently as two years ago, fund managers employed no or low levels of leverage, but some have begun to change their approach. According to Flynn, "the fund sponsors that have veered higher, scaling up their funds, and that are older and more seasoned, are the ones now using leverage to drive income and returns higher."
Effectively employing leverage has the potential to increase fund returns and create a competitive edge relative to other funds. "Managers can maintain a consistent favorable spread between the rate they lend at – via their investments – and whatever rate they access leverage at," said Flynn. "Managers levering up by 40% could generate higher returns in the 150 to 350 basis point range."
To read the full article, please click here.
For more information on XA Investment's interval fund service offerings in leverage strategy, leverage sources, and leverage management, please contact us at info@xainvestments.com.
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Common Shares Distribution of $0.085 per Share
June 1, 2023, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.085 per share on the Trust's common shares (NYSE: XFLT), payable on July 3, 2023, to common shareholders of record as of June 15, 2023, as noted below. The amount of the distribution represents no change from the previous month's distribution amount of $0.085 per share.
The following dates apply to the declaration:
Ex-Dividend Date | June 14, 2023 | |
Record Date | June 15, 2023 | |
Payable Date | July 3, 2023 | |
Amount | $0.085 per common share | |
Change from Previous Month | No change |
Common share distributions may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2023 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The Trust's net investment income and capital gain can vary significantly over time; however, the Trust seeks to maintain more stable common share monthly distributions over time. The Trust's investments in CLOs are subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States ("U.S. GAAP"), and, as a result, there may be significant differences between the Trust's GAAP income and its taxable income. The Trust's final taxable income for the current fiscal year will not be known until the Trust's tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute to common shareholders by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Trust's fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The common share distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder's tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder's potential gain, or reduce the common shareholder's potential loss, on any subsequent sale or other disposition of common shares.
The distribution shall be paid on the Payment Date unless the payment of such distribution is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern, or to comply with the applicable terms or financial covenants of the Trust's senior securities.
Future common share distributions will be made if and when declared by the Trust's Board of Trustees, based on a consideration of number of factors, including the Trust's continued compliance with terms and financial covenants of its senior securities, the Trust's net investment income, financial performance and available cash. There can be no assurance that the amount or timing of common share distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of common share distributions in the future.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT," and the Trust's 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol "XFLTPRA".
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based
firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory
services, the firm also provides investment fund structuring and consulting services focused
on registered closed-end funds to meet institutional client needs. XAI offers custom product
build and consulting services, including development and market research, sales, marketing,
fund management and administration. XAI believes that the investing public can benefit from
new vehicles to access a broad range of alternative investment strategies and managers. XAI
provides individual investors with access to institutional-caliber alternative managers. For
more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services
firm providing M&A, corporate advisory and asset management services to clients. It has
offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser.
Octagon is a 25+ year old, $33.8B below-investment grade corporate credit investment adviser
focused on leveraged loan, high yield bond and structured credit (CLO debt and equity)
investments. Through fundamental credit analysis and active portfolio management, Octagon's
investment team identifies attractive relative value opportunities across below-investment
grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology
encourage and rely upon dynamic internal communication to manage portfolio risk. Over its
history, the firm has applied a disciplined, repeatable and scalable approach in its effort
to generate attractive risk-adjusted returns for its investors. For more information, please
visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE |
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
XA Investments Publishes New White Paper on Farmland Investing
May 16, 2023, Chicago - XA Investments LLC ("XAI"), an alternative investment firm that focuses on the US and UK closed-end fund markets, has published a new white paper, titled "Reframing Farmland as an Investment: A Compelling Opportunity in an Inflationary Environment." The white paper details the investment characteristics of farmland, an asset class that has not been broadly accessible until recently.
The U.S. farmland market represents a significant and growing market for investment with a total value exceeding US$2.9 trillion according to the USDA as of 2020. Farmland investments can improve portfolio diversification because they are real assets, which traditionally have negative correlations to stocks and bonds. Farmland has historically exhibited a positive correlation with inflation and should therefore be considered an effective inflation hedge. To read the white paper, please visit our website here or contact info@xainvestments.com.
XAI provides market insights and customized execution and advice services to asset managers seeking to launch new closed-end funds and other permanent capital vehicles in both the US and UK. Driven by an experienced team with a deep investment knowledge and registered fund industry network, XAI consulting has helped clients in engagements ranging from full product builds to discrete and specialized projects.
XAI consulting specializes in helping institutional managers seeking to enter the growing retail marketplace with the development of registered funds in the US and UK, including exchange-listed closed-end funds, interval funds, tender offer funds and hybrid funds. The firm seamlessly partners with its consulting clients and works collaboratively with internal project teams to execute on the product launch and capital raise.
XAI's consulting business is led by Kimberly Flynn and Ben McCulloch and is supported by a cross-functional team of dedicated consultants, closed-end fund experts, professionals and research associates. The combined XAI team brings over 120 years of fund market expertise and collectively has been involved in 150+ closed-end fund launches.
About XA Investments
XAI is a Chicago-based firm founded by XMS Capital Partners in April 2016. In addition to
investment advisory services, the firm also provides investment fund structuring and
consulting services focused on registered closed-end funds to meet institutional client
needs. XAI offers custom product build and consulting services, including development and
market research, sales, marketing, fund management and administration. XAI believes that the
investing public can benefit from new vehicles to access a broad range of alternative
investment strategies and managers. XAI provides individual investors with access to
institutional-caliber alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services
firm providing M&A, corporate advisory and asset management services to clients. It has
offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
XAI does not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
The information in this press release may be changed. This press release shall not constitute any offer to sell or issue, or a solicitation of any offer to buy, subscribe for or otherwise acquire, nor shall there be any sale of, any securities in the United States or any other jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such jurisdiction.
This press release contains certain statements that may include "forward-looking statements." Forward-looking statements can be identified by the words "may," "will," "intend," "expect," "estimate," "continue," "plan," "anticipate," and similar terms and the negatives of such terms. By their nature, all forward-looking statements involve risks and uncertainties, and actual results could differ materially from those contemplated by the forward-looking statements. Many factors that could materially affect actual results, including conditions in the US, UK and international financial and other markets, and the price at which securities trade in the public markets and other factors.
Although XAI believes that the expectations expressed in such forward-looking statements are reasonable, actual results could differ materially from those expressed or implied in such forward-looking statements. Any forward-looking statements are subject to change and are subject to inherent risks and uncertainties. You are cautioned not to place undue reliance on these forward-looking statements, which are made as of the date of this press release. Except for ongoing obligations under applicable law, XAI does not intend, and XAI undertakes no obligation, to update any forward-looking statement.
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE |
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@xainvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Will Host Q1 2023 Quarterly Webinar on May 25, 2023
May 9, 2023, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust (NYSE: XFLT) (the "Trust") today announced that it plans to host the Trust's Quarterly Webinar on May 25, 2023 at 12:00 pm (Eastern Time). Kimberly Flynn, Managing Director at XA Investments ("XAI") will moderate the Q&A style webinar with Steven Perry, Vice President at XAI, and Gretchen Lam, Senior Portfolio Manager at Octagon Credit Investors.
TO JOIN VIA WEB: Please go to the Knowledge Bank section of xainvestments.com or click here to find the online registration link.
TO USE YOUR TELEPHONE: After joining via web, if you prefer to use your phone for audio, you must select that option and call in using a number below, based on your current location.
Dial: (312) 626-6799 or (267) 831-0333 or (646) 558-8656 or (213) 338-8477 or (720)
928-9299
Webinar ID: 895 6979 9331
Passcode: 777339
REPLAY: A replay of the webinar will be available in the Knowledge Bank section of xainvestments.com or through the same registration link previously used.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT," and the Trust's 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol "XFLTPRA."
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory services, the firm also provides investment fund structuring and consulting services focused on registered closed-end funds to meet institutional client needs. XAI offers custom product build and consulting services, including development and market research, sales, marketing, fund management and administration. XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. XAI provides individual investors with access to institutional-caliber alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services firm providing M&A, corporate advisory and asset management services to clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser. Octagon is a 25+ year old, $33.8B below-investment grade corporate credit investment adviser focused on leveraged loan, high yield bond and structured credit (CLO debt and equity) investments. Through fundamental credit analysis and active portfolio management, Octagon's investment team identifies attractive relative value opportunities across below-investment grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology encourage and rely upon dynamic internal communication to manage portfolio risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach in its effort to generate attractive risk-adjusted returns for its investors. For more information, please visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Steven Perry, Vice President
XA Investments LLC
Phone: 312-374-6933
Email: SPerry@XAInvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Common Shares Distribution of $0.085 per Share
May 1, 2023, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.085 per share on the Trust's common shares (NYSE: XFLT), payable on June 1, 2023, to common shareholders of record as of May 16, 2023, as noted below. The amount of the distribution represents a 16.44% increase from the previous month's distribution amount of $0.073 per share.
The following dates apply to the declaration:
Ex-Dividend Date | May 15, 2023 | |
Record Date | May 16, 2023 | |
Payable Date | June 1, 2023 | |
Amount | $0.085 per common share | |
Change from Previous Month | 16.44% increase |
Common share distributions may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2023 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The Trust's net investment income and capital gain can vary significantly over time; however, the Trust seeks to maintain more stable common share monthly distributions over time. The Trust's investments in CLOs are subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States ("U.S. GAAP"), and, as a result, there may be significant differences between the Trust's GAAP income and its taxable income. The Trust's final taxable income for the current fiscal year will not be known until the Trust's tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute to common shareholders by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Trust's fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The common share distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder's tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder's potential gain, or reduce the common shareholder's potential loss, on any subsequent sale or other disposition of common shares.
The distribution shall be paid on the Payment Date unless the payment of such distribution is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern, or to comply with the applicable terms or financial covenants of the Trust's senior securities.
Future common share distributions will be made if and when declared by the Trust's Board of Trustees, based on a consideration of number of factors, including the Trust's continued compliance with terms and financial covenants of its senior securities, the Trust's net investment income, financial performance and available cash. There can be no assurance that the amount or timing of common share distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of common share distributions in the future.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT," and the Trust's 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol "XFLTPRA".
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based
firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory
services, the firm also provides investment fund structuring and consulting services focused
on registered closed-end funds to meet institutional client needs. XAI offers custom product
build and consulting services, including development and market research, sales, marketing,
fund management and administration. XAI believes that the investing public can benefit from
new vehicles to access a broad range of alternative investment strategies and managers. XAI
provides individual investors with access to institutional-caliber alternative managers. For
more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services
firm providing M&A, corporate advisory and asset management services to clients. It has
offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser.
Octagon is a 25+ year old, $33.8B below-investment grade corporate credit investment adviser
focused on leveraged loan, high yield bond and structured credit (CLO debt and equity)
investments. Through fundamental credit analysis and active portfolio management, Octagon's
investment team identifies attractive relative value opportunities across below-investment
grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology
encourage and rely upon dynamic internal communication to manage portfolio risk. Over its
history, the firm has applied a disciplined, repeatable and scalable approach in its effort
to generate attractive risk-adjusted returns for its investors. For more information, please
visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE |
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
Kimberly Flynn Contributes to New Ignites Article on Interval Fund Distribution Platforms
Ignites reporter Alyson Velati published a new article on the increased competition between interval funds to get on a major distribution platform, such as Fidelity or Schwab. The article, "Interval Funds Face More Competition for Limited Shelf Space," features insights from Kimberly Flynn, XA Investments Managing Director of Alternative Investments.
While being approved on one or more of the major distribution platforms can be integral for interval funds trying to access the registered investment advisor channel, Flynn explains that the process of getting added to the platform is not an easy one. It "takes real client demand and patience to get added," she says, as the approval process can last several months and requires proof that there is fund demand from investors on the platform prior to being added.
"It's a big moment for an interval fund sponsor to secure the Fidelity and Schwab selling agreements - so much so that fund sponsors are putting out press releases when the moment comes," she said. "Very different from getting a new mutual fund added to an existing selling agreement."
Conversely, interval funds that do not get added to a distribution platform "are limited in terms of who they can sell the fund to and distribution efforts can be slower," she added.
To read the full article, please click here.
For more information on interval funds, please read our white paper here or contact us at info@xainvestments.com.
Bloomberg Article on PIMCO Municipal Bond CEFs Features Kimberly Flynn
In his new article, Bloomberg News reporter Martin Braun discusses updated investment guidelines for PIMCO's municipal bond focused listed CEFs that allow the funds to lend directly to US states and cities. The article, "PIMCO Allows Municipal Closed-End Funds to Make Loans to Cities," explains that the announcement applies to nine of PIMCO's funds with a total of $1.9 billion in AUM and comes at a time when borrowers are looking to avoid the borrowing costs associated with issuing traditional municipal bonds.
Kimberly Flynn, XA Investments Managing Director of Alternative Investments, contributes to the article, highlighting the benefits of this type of arrangement. "The size and scale of the PIMCO muni complex allows them to go and actually negotiate directly with municipalities," she says. "Some of these smaller municipalities, you're going to take on potentially less credit risk, but you're going to pick up incremental yield."
For more information on closed-end funds, please visit our Knowledge Bank or contact us at info@xainvestments.com.
Ignites Article on BlackRock Listed CEF Share Repurchase Program Features Kimberly Flynn
Alyson Velati reports for Ignites in her new article, "BlackRock Repurchases $112M in Closed-End Fund Shares," which covers BlackRock's share buyback program that was launched to address persistent discounts among the firm's listed CEFs. Since announced, the repurchase program has resulted in nearly $1 billion in CEF share buybacks by BlackRock.
Kimberly Flynn, XA Investments Managing Director of Alternative Investments, contributes to the article. BlackRock includes 37 of its 51 total listed CEFs in the repurchase program, signaling "a significant commitment by BlackRock, which I believe financial advisors appreciate and view as supportive of the listed closed-end fund complex," Flynn says.
While share repurchase programs can benefit a fund's secondary market performance, they also have their limitations. "Share repurchase programs are largely symbolic - meaning the value of a share repurchase program is all in the announcement," Flynn explains. "It sends a positive signal to advisors and investors. The reality is that share repurchase programs are no substitute for natural demand for the closed-end funds' shares. Share repurchase programs will not make closed-end funds that trade at discounts start to trade at premiums - only positive NAV performance and true investor demand can make that happen."
To read the full article, please click here.
For more information on interval funds, please read our white paper here or contact us at info@xainvestments.com.
Kimberly Flynn Comments on Expenses for Newly Launched Interval Fund in Ignites Article
In Alyson Velati's Ignites article, "Ark Caps Fees on $15M Interval Fund," she discusses how Ark Investment Management has lowered the fees on its new interval fund, Ark Venture Fund, due to slower-than-expected asset growth. The fund debuted in September 2022 with a 275-bp management fee and a $500 minimum investment. As of March 31, it had only around $15 million in net assets, far below the $500 million expected. To lower the fund's overall fees, Ark will either waive its management fee or reimburse the interval fund's operating expenses through November 28, 2024.
Tom Staudt, Ark's COO, said "Now, we're not one year into it, but we can reasonably ascertain that we're below our forecast. That number was not an actual fixed number - it was a best-effort guess." It can take up to six months to get an interval fund on the top clearing and custody platforms, but once a fund is onboarded assets can start to trickle in, said Kimberly Flynn, XA Investments Managing Director of Alternative Investments. However, to get on a big platform, there must be client demand, she added.
"Whether you're Cathie Wood or not, it's going to take you that long, and that's why you have to be realistic about these expense assumptions," Flynn said.
To read the full article, please click here.
For more information on interval funds, please read our white paper here or contact us at info@xainvestments.com.
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Common Shares Distribution and Quarterly Preferred Shares Dividend
April 3, 2023, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.073 per share of the Trust's common shares (NYSE: XFLT). The Trust also declared preferred dividends for the quarter of $0.40625 per share of the Trust's 6.50% Series 2026 Term Preferred Shares (NYSE: XFLTPRA).
The following dates apply to each declaration:
Share Class | Ex-Dividend Date | Record Date | Payable Date | Amount | Change from Previous Declaration |
---|---|---|---|---|---|
XFLT | April 14, 2023 | April 17, 2023 | May 1, 2023 | $0.073 | No Change |
XFLTPRA | April 14, 2023 | April 17, 2023 | May 1, 2023 | $0.40625 | No Change1 |
1 The Trust's 6.50% Series 2026 Term Preferred Shares dividend is calculated based on the preferred shares Liquidation Preference of $25.00 per share and the fixed dividend rate of 6.50%.
Common share distributions may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2023 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The Trust's net investment income and capital gain can vary significantly over time; however, the Trust seeks to maintain more stable common share monthly distributions over time. The Trust's investments in CLOs are subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States ("U.S. GAAP"), and, as a result, there may be significant differences between the Trust's GAAP income and its taxable income. The Trust's final taxable income for the current fiscal year will not be known until the Trust's tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute to common shareholders by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on January 31 of the calendar year (unless an election is made to use the Trust's fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The common share distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder's tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder's potential gain, or reduce the common shareholder's potential loss, on any subsequent sale or other disposition of common shares.
Preferred shareholders are entitled to receive cumulative cash dividends and distributions on the Trust's 6.50% Series 2026 Term Preferred Shares, when, as and if declared by, or under authority granted by, the Board of Trustees of the Trust out of funds legally available for distribution and in preference to dividends and distributions on common shares. If the Trust is unable to distribute the full dividend amount due in a dividend period on the Trust's 6.50% Series 2026 Term Preferred Shares, the dividends will be distributed on a pro rata basis among the preferred shareholders.
Distributions and dividends shall be paid on the Payable Date listed above unless the payment of such distribution or dividend is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law, to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern or, with regard to the Trust's regular monthly distribution to common shareholders, to comply with the applicable terms or financial covenants of the Trust's senior securities.
Future common share distributions will be made if and when declared by the Trust's Board of Trustees, based on a consideration of number of factors, including the Trust's continued compliance with terms and financial covenants of its senior securities, the Trust's net investment income, financial performance and available cash. There can be no assurance that the amount or timing of common share distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of common share distributions in the future.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT," and the Trust's 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol "XFLTPRA."
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based
firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory
services, the firm also provides investment fund structuring and consulting services focused
on registered closed-end funds to meet institutional client needs. XAI offers custom product
build and consulting services, including development and market research, sales, marketing,
fund management and administration. XAI believes that the investing public can benefit from
new vehicles to access a broad range of alternative investment strategies and managers. XAI
provides individual investors with access to institutional-caliber alternative managers. For
more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services
firm providing M&A, corporate advisory and asset management services to clients. It has
offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser.
Octagon is a 25+ year old, $33.8B below-investment grade corporate credit investment adviser
focused on leveraged loan, high yield bond and structured credit (CLO debt and equity)
investments. Through fundamental credit analysis and active portfolio management, Octagon's
investment team identifies attractive relative value opportunities across below-investment
grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology
encourage and rely upon dynamic internal communication to manage portfolio risk. Over its
history, the firm has applied a disciplined, repeatable and scalable approach in its effort
to generate attractive risk-adjusted returns for its investors. For more information, please
visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE |
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
FundFire Alts Article on Wirehouse Adoption of Interval Funds Features XA Investments Data and Insights from Kimberly Flynn
FundFire Alts Editor Tom Stabile discusses the recent addition of interval funds to wirehouse platforms amidst slowing fund inflows in his new article, "Wirehouses Dial Up Interval Fund Rosters as Sales Slowdown Worsens." The article uses XAI data to explore recent trends in wirehouse interval fund offerings.
Kimberly Flynn, XA Investments Managing Director of Alternative Investments, expects that wirehouse firms will only continue to add interval funds to their platforms. "There is a lot of growth left," she says. "It's still early in terms of the increase in the variety of funds and asset classes." Specifically, she anticipates that funds investing in asset classes like infrastructure, real asset, impact investing and hedge fund strategies will be added. "The gatekeepers are saying they're looking for new and differentiated strategies," she said. "They'll probably be slow to add anything that's diversified private credit, but every other asset class has interesting room for growth."
Some fund managers choose to focus on distributing their interval funds to RIAs, rather than spending time on wirehouse due diligence. "They're telling their clients, 'We're an RIA-focused fund,'" Flynn explains.
To read the full article, please click here.
For more information on interval funds, please read our white paper here or contact us at info@xainvestments.com.
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Common Shares Distribution of $0.073 per Share
March 1, 2023, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's common shares (NYSE: XFLT), payable on April 3, 2023 to common shareholders of record as of March 15, 2023, as noted below. The amount of the distribution represents no change from the previous month's distribution amount.
The following dates apply to the declaration:
Ex-Dividend Date | March 14, 2023 | |
Record Date | March 15, 2023 | |
Payable Date | April 3, 2023 | |
Amount | $0.073 per common share | |
Change from Previous Month | No change |
Common share distributions may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2023 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The Trust's net investment income and capital gain can vary significantly over time; however, the Trust seeks to maintain more stable common share monthly distributions over time. The Trust's investments in CLOs are subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States ("U.S. GAAP"), and, as a result, there may be significant differences between the Trust's GAAP income and its taxable income. The Trust's final taxable income for the current fiscal year will not be known until the Trust's tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute to common shareholders by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Trust's fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The common share distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder's tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder's potential gain, or reduce the common shareholder's potential loss, on any subsequent sale or other disposition of common shares.
The distribution shall be paid on the Payment Date unless the payment of such distribution is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law, to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern, or to comply with the applicable terms or financial covenants of the Trust's senior securities.
Future common share distributions will be made if and when declared by the Trust's Board of Trustees, based on a consideration of number of factors, including the Trust's continued compliance with terms and financial covenants of its senior securities, the Trust's net investment income, financial performance and available cash. There can be no assurance that the amount or timing of common share distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of common share distributions in the future.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT," and the Trust's 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol "XFLTPRA."
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based
firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory
services, the firm also provides investment fund structuring and consulting services focused
on registered closed-end funds to meet institutional client needs. XAI offers custom product
build and consulting services, including development and market research, sales, marketing,
fund management and administration. XAI believes that the investing public can benefit from
new vehicles to access a broad range of alternative investment strategies and managers. XAI
provides individual investors with access to institutional-caliber alternative managers. For
more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services
firm providing M&A, corporate advisory and asset management services to clients. It has
offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser.
Octagon is a 25+ year old, $33.8B below-investment grade corporate credit investment adviser
focused on leveraged loan, high yield bond and structured credit (CLO debt and equity)
investments. Through fundamental credit analysis and active portfolio management, Octagon's
investment team identifies attractive relative value opportunities across below-investment
grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology
encourage and rely upon dynamic internal communication to manage portfolio risk. Over its
history, the firm has applied a disciplined, repeatable and scalable approach in its effort
to generate attractive risk-adjusted returns for its investors. For more information, please
visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE |
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Will Host Q4 2022 Quarterly Webinar on March 2, 2023
February 21, 2023, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust (NYSE: XFLT) (the "Trust") today announced that it plans to host the Trust's Quarterly Webinar on March 2, 2023 at 11:00 am (Eastern Time). Robert Chenoweth, Vice President at XA Investments ("XAI") will moderate the Q&A style webinar with Kimberly Flynn, Managing Director at XAI, and Gretchen Lam, Senior Portfolio Manager at Octagon Credit Investors.
TO JOIN VIA WEB: Please go to the Knowledge Bank section of xainvestments.com or click here to find the online registration link.
TO USE YOUR TELEPHONE: After joining via web, if you prefer to use your phone for audio, you must select that option and call in using a number below, based on your current location.
Dial: (312) 626-6799 or (267) 831-0333 or (646) 558-8656 or (213) 338-8477 or (720)
928-9299
Webinar ID: 815 7511 2773
Passcode: 777339
REPLAY: A replay of the webinar will be available in the Knowledge Bank section of xainvestments.com or through the same registration link previously used.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT," and the Trust's 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol "XFLTPRA."
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory services, the firm also provides investment fund structuring and consulting services focused on registered closed-end funds to meet institutional client needs. XAI offers custom product build and consulting services, including development and market research, sales, marketing, fund management and administration. XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. XAI provides individual investors with access to institutional-caliber alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services firm providing M&A, corporate advisory and asset management services to clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser. Octagon is a 25+ year old, $33.8B below-investment grade corporate credit investment adviser focused on leveraged loan, high yield bond and structured credit (CLO debt and equity) investments. Through fundamental credit analysis and active portfolio management, Octagon's investment team identifies attractive relative value opportunities across below-investment grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology encourage and rely upon dynamic internal communication to manage portfolio risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach in its effort to generate attractive risk-adjusted returns for its investors. For more information, please visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Robert Chenoweth, Vice President – Investor Relations
XA Investments LLC
Phone: 888-903-3358
Email: RChenoweth@XAInvestments.com
www.xainvestments.com
Kimberly Flynn Quoted on Reworking the Old 60/40 Portfolio
PlanAdviser's Natalie Lin writes about XA Investments' event "The Rise of Alternatives and the New 60/40 Portfolio" held at the NYSE on February 15th. The event featured a panel of industry experts who discussed how the 60/40 approach to investing has been seriously challenged in recent years by inflation and fears of a recession, reversing the historical negative correlation between stocks and bonds.
Lin's article, "60/40 Portfolio Can Be Improved with Creative Use of Alternatives, Experts Say," highlights methods that can diversify and target new sources of income for retirement savers. The article explores liquid alternatives, collective investment trusts and self-directed individual retirement accounts.
Kimberly Flynn, XA Investments Managing Director of Alternative Investments was quoted as saying that while interval funds and closed-end funds are a natural fit to house alternatives she does not think they will be accessible any time soon in defined contribution plans. In the meantime, she expects to see a resurgence of liquid alternative mutual funds.
Since the 1980's, the 60/40 portfolio of stocks and bonds provided investors with attractive risk-adjusted returns. However, due to recent economic events, investors need to re-examine their portfolio construction and consider ways to improve on the classic asset allocations by adding alternative sources of diversification and return.
To read the full article, please click here.
To read XAI's white paper "Using Alternatives to Achieve Your Retirement Goals," please click here.
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Common Shares Distribution of $0.073 per Share
February 1, 2023, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's common shares (NYSE: XFLT), payable on March 1, 2023 to common shareholders of record as of February 15, 2023, as noted below. The amount of the distribution represents no change from the previous month's distribution amount.
The following dates apply to the declaration:
Ex-Dividend Date | February 14, 2023 | |
Record Date | February 15, 2023 | |
Payable Date | March 1, 2023 | |
Amount | $0.073 per common share | |
Change from Previous Month | No change |
Common share distributions may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2022 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The Trust's net investment income and capital gain can vary significantly over time; however, the Trust seeks to maintain more stable common share monthly distributions over time. The Trust's investments in CLOs are subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States ("U.S. GAAP"), and, as a result, there may be significant differences between the Trust's GAAP income and its taxable income. The Trust's final taxable income for the current fiscal year will not be known until the Trust's tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute to common shareholders by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Trust's fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The common share distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder's tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder's potential gain, or reduce the common shareholder's potential loss, on any subsequent sale or other disposition of common shares.
The distribution shall be paid on the Payment Date unless the payment of such distribution is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law, to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern, or to comply with the applicable terms or financial covenants of the Trust's senior securities.
Future common share distributions will be made if and when declared by the Trust's Board of Trustees, based on a consideration of number of factors, including the Trust's continued compliance with terms and financial covenants of its senior securities, the Trust's net investment income, financial performance and available cash. There can be no assurance that the amount or timing of common share distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of common share distributions in the future.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT," and the Trust's 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol "XFLTPRA."
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based
firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory
services, the firm also provides investment fund structuring and consulting services focused
on registered closed-end funds to meet institutional client needs. XAI offers custom product
build and consulting services, including development and market research, sales, marketing,
fund management and administration. XAI believes that the investing public can benefit from
new vehicles to access a broad range of alternative investment strategies and managers. XAI
provides individual investors with access to institutional-caliber alternative managers. For
more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services
firm providing M&A, corporate advisory and asset management services to clients. It has
offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser.
Octagon is a 25+ year old, $33.8B below-investment grade corporate credit investment adviser
focused on leveraged loan, high yield bond and structured credit (CLO debt and equity)
investments. Through fundamental credit analysis and active portfolio management, Octagon's
investment team identifies attractive relative value opportunities across below-investment
grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology
encourage and rely upon dynamic internal communication to manage portfolio risk. Over its
history, the firm has applied a disciplined, repeatable and scalable approach in its effort
to generate attractive risk-adjusted returns for its investors. For more information, please
visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE |
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
New FundFire Alts Article on Interval Fund Proration Features Kimberly Flynn
In his new article, "Alts Fund Redemption Prorating Far Higher in '20 Than '22: Cliffwater," FundFire Alts editor Tom Stabile discusses Cliffwater's recent study of non-traded REITs, BDCs and interval funds. The study analyzed the occurrence of proration events - when funds receive redemption requests exceeding the stated amount of share repurchases offered and have to return to investors less than what they requested - over the past three years.
While proration has been widely discussed recently, with the Blackstone Real Estate Income Trust (BREIT) becoming a very public example of a fund experiencing prorated redemptions, the study found that proration was actually more prevalent in early 2020 during the Covid pandemic than in recent months. Further, it found that many of the funds that did experience proration during 2020 were ultimately able to meet redemption requests and resume regular, non-prorated quarterly repurchases.
Kimberly Flynn, XA Investments Managing Director of Alternative Investments, explains that "there are benefits to the pro-rata system." Proration can be a problem for funds experiencing poor performance, but it can also protect investment returns. The assets held in interval funds are typically less liquid, long-term investments, and offering limited liquidity helps encourage investors to treat them as such.
Additionally, the recent proration examples may encourage fund managers to more clearly outline liquidity strategies in fund prospectuses, which often do not provide investors with a detailed description of what to expect during a proration event. "Managers may talk about their tools and liquidity planning - most funds have a credit facility and have tiering of securities by liquidity in their portfolio and discuss management of leverage and cash management," Flynn said. "But trying to find that detail in writing is difficult."
To read the full article, please click here.
To read XAI's white paper on Interval Funds, please click here.
To request a copy of the XAI Investments Quarterly Market Update for CEFs and Non-Listed Funds, please click here.
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Common Shares Distribution and Quarterly Preferred Shares Dividend
January 3, 2023, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.073 per share of the Trust's common shares (NYSE: XFLT). The Trust also declared preferred dividends for the quarter of $0.40625 per share of the Trust's 6.50% Series 2026 Term Preferred Shares (NYSE: XFLTPRA).
The following dates apply to the declaration:
Share Class | Ex-Dividend Date | Record Date | Payable Date | Amount | Change from Previous Declaration |
---|---|---|---|---|---|
XFLT | January 13, 2023 | January 17, 2023 | February 1, 2023 | $0.073 | No Change |
XFLTPRA | January 13, 2023 | January 17, 2023 | January 31, 2023 | $0.40625 | No Change1 |
1 The Trust's 6.50% Series 2026 Term Preferred Shares dividend is calculated based on the preferred shares Liquidation Preference of $25.00 per share and the fixed dividend rate of 6.50%.
Common share distributions may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2023 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The Trust's net investment income and capital gain can vary significantly over time; however, the Trust seeks to maintain more stable common share monthly distributions over time. The Trust's investments in CLOs are subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States ("U.S. GAAP"), and, as a result, there may be significant differences between the Trust's GAAP income and its taxable income. The Trust's final taxable income for the current fiscal year will not be known until the Trust's tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute to common shareholders by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on January 31 of the calendar year (unless an election is made to use the Trust's fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The common share distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder's tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder's potential gain, or reduce the common shareholder's potential loss, on any subsequent sale or other disposition of common shares.
Preferred shareholders are entitled to receive cumulative cash dividends and distributions on the Trust's 6.50% Series 2026 Term Preferred Shares, when, as and if declared by, or under authority granted by, the Board of Trustees of the Trust out of funds legally available for distribution and in preference to dividends and distributions on common shares. If the Trust is unable to distribute the full dividend amount due in a dividend period on the Trust's 6.50% Series 2026 Term Preferred Shares, the dividends will be distributed on a pro rata basis among the preferred shareholders.
Distributions and dividends shall be paid on the Payable Date listed above unless the payment of such distribution or dividend is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law, to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern or, with regard to the Trust's regular monthly distribution to common shareholders, to comply with the applicable terms or financial covenants of the Trust's senior securities.
Future common share distributions will be made if and when declared by the Trust's Board of Trustees, based on a consideration of number of factors, including the Trust's continued compliance with terms and financial covenants of its senior securities, the Trust's net investment income, financial performance and available cash. There can be no assurance that the amount or timing of common share distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of common share distributions in the future.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT," and the Trust's 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol "XFLTPRA."
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based
firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory
services, the firm also provides investment fund structuring and consulting services focused
on registered closed-end funds to meet institutional client needs. XAI offers custom product
build and consulting services, including development and market research, sales, marketing,
fund management and administration. XAI believes that the investing public can benefit from
new vehicles to access a broad range of alternative investment strategies and managers. XAI
provides individual investors with access to institutional-caliber alternative managers. For
more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services
firm providing M&A, corporate advisory and asset management services to clients. It has
offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser.
Octagon is a 25+ year old, $33.2B below-investment grade corporate credit investment adviser
focused on leveraged loan, high yield bond and structured credit (CLO debt and equity)
investments. Through fundamental credit analysis and active portfolio management, Octagon's
investment team identifies attractive relative value opportunities across below-investment
grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology
encourage and rely upon dynamic internal communication to manage portfolio risk. Over its
history, the firm has applied a disciplined, repeatable and scalable approach in its effort
to generate attractive risk-adjusted returns for its investors. For more information, please
visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE |
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Common Shares Distribution of $0.073 per Share
December 1, 2022, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's common shares (NYSE: XFLT), payable on December 30, 2022 to common shareholders of record as of December 15, 2022, as noted below. The amount of the distribution represents no change from the previous month's distribution amount.
The following dates apply to the declaration:
Ex-Dividend Date | December 14, 2022 | |
Record Date | December 15, 2022 | |
Payable Date | December 30, 2022 | |
Amount | $0.073 per common share | |
Change from Previous Month | No change |
Common share distributions may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2022 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The Trust's net investment income and capital gain can vary significantly over time; however, the Trust seeks to maintain more stable common share monthly distributions over time. The Trust's investments in CLOs are subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States ("U.S. GAAP"), and, as a result, there may be significant differences between the Trust's GAAP income and its taxable income. The Trust's final taxable income for the current fiscal year will not be known until the Trust's tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute to common shareholders by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Trust's fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The common share distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder's tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder's potential gain, or reduce the common shareholder's potential loss, on any subsequent sale or other disposition of common shares.
The distribution shall be paid on the Payment Date unless the payment of such distribution is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law, to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern, or to comply with the applicable terms or financial covenants of the Trust's senior securities.
Future common share distributions will be made if and when declared by the Trust's Board of Trustees, based on a consideration of number of factors, including the Trust's continued compliance with terms and financial covenants of its senior securities, the Trust's net investment income, financial performance and available cash. There can be no assurance that the amount or timing of common share distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of common share distributions in the future.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT," and the Trust's 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol "XFLTPRA."
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based
firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory
services, the firm also provides investment fund structuring and consulting services focused
on registered closed-end funds to meet institutional client needs. XAI offers custom product
build and consulting services, including development and market research, sales, marketing,
fund management and administration. XAI believes that the investing public can benefit from
new vehicles to access a broad range of alternative investment strategies and managers. XAI
provides individual investors with access to institutional-caliber alternative managers. For
more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services
firm providing M&A, corporate advisory and asset management services to clients. It has
offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser.
Octagon is a 25+ year old, $33.0B below-investment grade corporate credit investment adviser
focused on leveraged loan, high yield bond and structured credit (CLO debt and equity)
investments. Through fundamental credit analysis and active portfolio management, Octagon's
investment team identifies attractive relative value opportunities across below-investment
grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology
encourage and rely upon dynamic internal communication to manage portfolio risk. Over its
history, the firm has applied a disciplined, repeatable and scalable approach in its effort
to generate attractive risk-adjusted returns for its investors. For more information, please
visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE |
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Will Host Q3 2022 Quarterly Webinar on December 1, 2022
November 28, 2022, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust (NYSE: XFLT) (the "Trust") today announced that it plans to host the Trust's Quarterly Webinar on December 1, 2022 at 11:00 am (Eastern Time). Robert Chenoweth, Vice President at XA Investments ("XAI") will moderate the Q&A style webinar with Kimberly Flynn, Managing Director at XAI, and Gretchen Lam, Senior Portfolio Manager at Octagon Credit Investors.
TO JOIN VIA WEB: Please go to the Knowledge Bank section of xainvestments.com or click here to find the online registration link.
TO USE YOUR TELEPHONE: After joining via web, if you prefer to use your phone for audio, you must select that option and call in using a number below, based on your current location.
Dial: (312) 626-6799 or (267) 831-0333 or (646) 558-8656 or (213) 338-8477 or (720)
928-9299
Webinar ID: 871 2559 0938
Passcode: 777339
REPLAY: A replay of the webinar will be available in the Knowledge Bank section of xainvestments.com or through the same registration link previously used.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT," and the Trust's 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol "XFLTPRA."
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory services, the firm also provides investment fund structuring and consulting services focused on registered closed-end funds to meet institutional client needs. XAI offers custom product build and consulting services, including development and market research, sales, marketing, fund management and administration. XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. XAI provides individual investors with access to institutional-caliber alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services firm providing M&A, corporate advisory and asset management services to clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser. Octagon is a 25+ year old, $33.2B below-investment grade corporate credit investment adviser focused on leveraged loan, high yield bond and structured credit (CLO debt and equity) investments. Through fundamental credit analysis and active portfolio management, Octagon's investment team identifies attractive relative value opportunities across below-investment grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology encourage and rely upon dynamic internal communication to manage portfolio risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach in its effort to generate attractive risk-adjusted returns for its investors. For more information, please visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Robert Chenoweth, Vice President – Investor Relations
XA Investments LLC
Phone: 888-903-3358
Email: RChenoweth@XAInvestments.com
www.xainvestments.com
Kimberly Flynn Comments on Growing Manager Interest in Non-Traded Products in FundFire Alts Article
FundFire Alts editor Tom Stabile writes about the growing interest among asset managers in launching non-traded products, including interval funds, REITs and BDCs. His article, titled "Sales Pace Sinks on Alts Products for Advisors, But Managers Rush In," explores both investor demand for the products and trends among managers looking to launch them.
While monthly sales for non-traded interval funds, REITs and BDCs have experienced a recent slowing of momentum, the combined sales for these products have the potential to set an annual record in 2022. BDCs and interval funds have each already set annual records this year, with $20.3 billion and $19.7 billion in sales, respectively. Managers remain eager to launch these products, as well. Kimberly Flynn, XA Investments Managing Director of Alternative Investments, explains, "Times like these remind [managers] that with traditional products the margins aren't great and they're subject to outflows. It reminds them they need to diversify their revenue sources."
Flynn expects that the slowing sales will not deter first-time issuers from launching these products. "We're going to have a ton of new entrants," she said. "There are more in 2023." Many of these firms hope to replicate the success that managers such as Blackstone, Cliffwater and Bluerock have had with this type of vehicle - XA Investments report notes that all of the top 20 interval fund managers have more than $1 billion in assets. "That's proof of concept," Flynn said.
To read the full article, please click here.
To read XAI's white paper on Interval Funds, please click here.
To request a copy of the XAI Investments Quarterly Market Update for CEFs and Non-Listed Funds, please click here.
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Common Shares Distribution of $0.073 per Share
November 1, 2022, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's common shares (NYSE: XFLT), payable on December 1, 2022 to common shareholders of record as of November 15, 2022, as noted below. The amount of the distribution represents no change from the previous month's distribution amount.
The following dates apply to the declaration:
Ex-Dividend Date | November 14, 2022 | |
Record Date | November 15, 2022 | |
Payable Date | December 1, 2022 | |
Amount | $0.073 per common share | |
Change from Previous Month | No change |
Common share distributions may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2022 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The Trust's net investment income and capital gain can vary significantly over time; however, the Trust seeks to maintain more stable common share monthly distributions over time. The Trust's investments in CLOs are subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States ("U.S. GAAP"), and, as a result, there may be significant differences between the Trust's GAAP income and its taxable income. The Trust's final taxable income for the current fiscal year will not be known until the Trust's tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute to common shareholders by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Trust’s fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The common share distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder's tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder's potential gain, or reduce the common shareholder's potential loss, on any subsequent sale or other disposition of common shares.
The distribution shall be paid on the Payment Date unless the payment of such distribution is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law, to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern, or to comply with the applicable terms or financial covenants of the Trust's senior securities.
Future common share distributions will be made if and when declared by the Trust's Board of Trustees, based on a consideration of number of factors, including the Trust's continued compliance with terms and financial covenants of its senior securities, the Trust's net investment income, financial performance and available cash. There can be no assurance that the amount or timing of common share distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of common share distributions in the future.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT," and the Trust's 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol "XFLTPRA."
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based
firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory
services, the firm also provides investment fund structuring and consulting services focused
on registered closed-end funds to meet institutional client needs. XAI offers custom product
build and consulting services, including development and market research, sales, marketing,
fund management and administration. XAI believes that the investing public can benefit from
new vehicles to access a broad range of alternative investment strategies and managers. XAI
provides individual investors with access to institutional-caliber alternative managers. For
more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services
firm providing M&A, corporate advisory and asset management services to clients. It has
offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser.
Octagon is a 25+ year old, $33.0B below-investment grade corporate credit investment adviser
focused on leveraged loan, high yield bond and structured credit (CLO debt and equity)
investments. Through fundamental credit analysis and active portfolio management, Octagon's
investment team identifies attractive relative value opportunities across below-investment
grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology
encourage and rely upon dynamic internal communication to manage portfolio risk. Over its
history, the firm has applied a disciplined, repeatable and scalable approach in its effort
to generate attractive risk-adjusted returns for its investors. For more information, please
visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE |
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Common Shares Distribution and Quarterly Preferred Shares Dividend
October 3, 2022, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.073 per share of the Trust's common shares (NYSE: XFLT). The Trust also declared preferred dividends for the quarter of $0.40625 per share of the Trust's 6.50% Series 2026 Term Preferred Shares (NYSE: XFLTPRA).
The following dates apply to each declaration:
Share Class | Ex-Dividend Date | Record Date | Payable Date | Amount | Change from Previous Declaration |
---|---|---|---|---|---|
XFLT | October 14, 2022 | October 17, 2022 | November 1, 2022 | $0.073 | No Change |
XFLTPRA | October 14, 2022 | October 17, 2022 | October 31, 2022 | $0.40625 | No Change1 |
1 The Trust's 6.50% Series 2026 Term Preferred Shares dividend is calculated based on the preferred shares Liquidation Preference of $25.00 per share and the fixed dividend rate of 6.50%.
Common share distributions may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2022 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The Trust's net investment income and capital gain can vary significantly over time; however, the Trust seeks to maintain more stable common share monthly distributions over time. The Trust's investments in CLOs are subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States ("U.S. GAAP"), and, as a result, there may be significant differences between the Trust's GAAP income and its taxable income. The Trust's final taxable income for the current fiscal year will not be known until the Trust's tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute to common shareholders by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Trust's fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The common share distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder's tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder's potential gain, or reduce the common shareholder's potential loss, on any subsequent sale or other disposition of common shares.
Preferred shareholders are entitled to receive cumulative cash dividends and distributions on the Trust's 6.50% Series 2026 Term Preferred Shares, when, as and if declared by, or under authority granted by, the Board of Trustees of the Trust out of funds legally available for distribution and in preference to dividends and distributions on common shares. If the Trust is unable to distribute the full dividend amount due in a dividend period on the Trust's 6.50% Series 2026 Term Preferred Shares, the dividends will be distributed on a pro rata basis among the preferred shareholders.
Distributions and dividends shall be paid on the Payable Date listed above unless the payment of such distribution or dividend is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law, to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern or, with regard to the Trust's regular monthly distribution to common shareholders, to comply with the applicable terms or financial covenants of the Trust's senior securities.
Future common share distributions will be made if and when declared by the Trust's Board of Trustees, based on a consideration of number of factors, including the Trust's continued compliance with terms and financial covenants of its senior securities, the Trust's net investment income, financial performance and available cash. There can be no assurance that the amount or timing of common share distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of common share distributions in the future.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT," and the Trust's 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol "XFLTPRA."
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based
firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory
services, the firm also provides investment fund structuring and consulting services focused
on registered closed-end funds to meet institutional client needs. XAI offers custom product
build and consulting services, including development and market research, sales, marketing,
fund management and administration. XAI believes that the investing public can benefit from
new vehicles to access a broad range of alternative investment strategies and managers. XAI
provides individual investors with access to institutional-caliber alternative managers. For
more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services
firm providing M&A, corporate advisory and asset management services to clients. It has
offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser.
Octagon is a 25+ year old, $32.9B below-investment grade corporate credit investment adviser
focused on leveraged loan, high yield bond and structured credit (CLO debt and equity)
investments. Through fundamental credit analysis and active portfolio management, Octagon's
investment team identifies attractive relative value opportunities across below-investment
grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology
encourage and rely upon dynamic internal communication to manage portfolio risk. Over its
history, the firm has applied a disciplined, repeatable and scalable approach in its effort
to generate attractive risk-adjusted returns for its investors. For more information, please
visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE |
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Celebrates 5th Anniversary
September 27, 2022, Chicago – XA Investments ("XAI"), a Chicago-based alternative asset manager, celebrates the 5th anniversary of the XAI Octagon Floating Rate & Alternative Income Term Trust (NYSE: XFLT) ("XFLT" or the "Trust"). Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser. The Trust was launched on September 27, 2017 with $82 million in net assets and has made several accretive follow-on equity offerings in addition to the issuance of shares pursuant to an "at the market" ("ATM") offering program, which have fueled outstanding asset growth for XFLT. As a result, the Trust has grown total managed assets by approximately 330% since its launch and now has approximately $395mm in managed assets (which includes assets attributable to the Trust's use of financial leverage). In addition, XFLT common shares have traded at an average premium to its net asset value of 3.55% since inception, as of September 26, 2022, enabling the Trust's asset growth to benefit shareholders through accretive issuances of common shares.
The investment objective of the Trust is to seek attractive total returns with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective. The Trust is well-positioned in the listed closed-end fund marketplace with its strategic investment mix of securities including loans and collateralized loan obligation ("CLO") investments. XFLT's investments may include (i) structured credit investments, including collateralized loan obligation ("CLO") debt and subordinated (i.e., residual or equity) securities; (ii) corporate credit investments, including leveraged loans and high yield bonds; (iii) opportunistic credit investments, including stressed and distressed credit situations; and (iv) other credit-related instruments.
Gretchen Lam, Senior Portfolio Manager at Octagon noted, "We are delighted to commemorate XFLT's 5-year anniversary. We appreciate the shareholders putting their trust with us."
Kimberly Flynn, Managing Director of XA Investments noted, "We are pleased with the strong asset growth we've observed in XFLT and its reception among institutions, financial advisors and other income-oriented investors. We believe Octagon is a leader in the CLO marketplace. We have and will continue to prioritize sound management of the Trust along with key investor education efforts on the CLO market, which we believe have supported the Trust's growth over time."
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT," and the Trust's 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol "XFLTPRA."
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory services, the firm also provides investment fund structuring and consulting services focused on registered closed-end funds to meet institutional client needs. XAI offers custom product build and consulting services, including development and market research, sales, marketing, fund management and administration. XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. XAI provides individual investors with access to institutional-caliber alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services firm providing M&A, corporate advisory and asset management services to clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser. Octagon is a 25+ year old, $32.9B below-investment grade corporate credit investment adviser focused on leveraged loan, high yield bond and structured credit (CLO debt and equity) investments. Through fundamental credit analysis and active portfolio management, Octagon's investment team identifies attractive relative value opportunities across below-investment grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology encourage and rely upon dynamic internal communication to manage portfolio risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach in its effort to generate attractive risk-adjusted returns for its investors. For more information, please visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
The Trust may not achieve its investment objective. An investment in the Trust is subject to investment risk, including possible loss of the entire principal amount that you invest. Shares of closed-end investment companies frequently trade at a discount from their net asset value, which is a risk separate and distinct from the risk that the Trust's net asset value could decrease as a result of its investment activities. An investment in the Trust involves risks and is not appropriate for all investors and is not intended to be a complete investment program. Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. The Trust invests primarily in below investment grade credit 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 as those with higher credit ratings. Investments in below investment grade credit instruments involve substantial risk of loss. The Trust invests a significant portion of its assets in CLO debt and subordinated notes (commonly referred to as CLO "equity") which often involve risks that are different from or more acute than risks associated with other types of credit instruments. CLOs are a type of structured credit instrument. Holders of structured credit instruments bear risks of the underlying investments, index or reference obligation as well as risks associated with the issuer of the instrument, which is often a special purpose vehicle, and may also be subject to counterparty risk. Senior loans may not be fully secured by collateral, generally do not trade on exchanges, and are typically issued by unrated or below-investment grade companies, and therefore are subject to greater liquidity and credit risk. See the Trust's periodic filings with the Securities and Exchange Commission for a discussion of the risks associated with an investment in the Trust's securities.
For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
The Trust has entered into a Distribution Agreement with Foreside Fund Services, LLC pursuant to which the Trust may offer and sell up to common shares, from time to time, in "at the market" transactions. Foreside Fund Services, LLC, a FINRA Member firm, is not affiliated with the Trust's investment adviser or sub-adviser.
This press release may contain forward-looking statements, within the meaning of the federal securities laws, that involve risks and uncertainties. These statements describe the Trust's plans, strategies, and goals and the Trust's beliefs and assumptions concerning future economic and other conditions and the outlook for the Trust, based on currently available information. Words such as "anticipates," "believes," "expects," "objectives," "goals," "future," "intends," "seeks," "will," "may," "could," "should," and similar expressions, and the negative of such terms, are used in an effort to identify forward-looking statements, although some forward-looking statements may be expressed differently. By their nature, all forward looking statements involve risks and uncertainties, and actual results could differ materially from those contemplated by any forward looking statements. Although the Trust believes that the expectations expressed in these forward looking statements are reasonable, actual results could differ materially from those projected or assumed in these forward looking statements. The Trust's future financial condition and results of operations, as well as any forward looking statements, are subject to change and are subject to inherent risks and uncertainties. The Trust urges you to review carefully the Trust's periodic filings with the Securities and Exchange Commission for a discussion of the risks associated with an investment in the Trust's securities. All forward looking statements contained in this press release are made as of the date hereof. Except for the Trust's ongoing obligations under the federal securities laws, the Trust does not intend, and the Trust undertakes no obligation, to update any forward-looking statement.
Media Contact:
Robert Chenoweth, Vice President – Investor Relations
XA Investments LLC
Phone: 1-888-903-3358
Email: RChenoweth@XAInvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Common Shares Distribution of $0.073 per Share
September 1, 2022, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's common shares (NYSE: XFLT), payable on October 3, 2022 to common shareholders of record as of September 16, 2022, as noted below. The amount of the distribution represents no change from the previous month's distribution amount.
The following dates apply to the declaration:
Ex-Dividend Date | September 15, 2022 | |
Record Date | September 16, 2022 | |
Payable Date | October 1, 2022 | |
Amount | $0.073 per common share | |
Change from Previous Month | No change |
Common share distributions may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2022 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The Trust's net investment income and capital gain can vary significantly over time; however, the Trust seeks to maintain more stable common share monthly distributions over time. The Trust's investments in CLOs are subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States ("U.S. GAAP"), and, as a result, there may be significant differences between the Trust's GAAP income and its taxable income. The Trust's final taxable income for the current fiscal year will not be known until the Trust's tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute to common shareholders by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Trust’s fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The common share distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder's tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder's potential gain, or reduce the common shareholder's potential loss, on any subsequent sale or other disposition of common shares.
The distribution shall be paid on the Payment Date unless the payment of such distribution is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law, to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern, or to comply with the applicable terms or financial covenants of the Trust's senior securities.
Future common share distributions will be made if and when declared by the Trust's Board of Trustees, based on a consideration of number of factors, including the Trust's continued compliance with terms and financial covenants of its senior securities, the Trust's net investment income, financial performance and available cash. There can be no assurance that the amount or timing of common share distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of common share distributions in the future.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT," and the Trust's 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol "XFLTPRA."
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based
firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory
services, the firm also provides investment fund structuring and consulting services focused
on registered closed-end funds to meet institutional client needs. XAI offers custom product
build and consulting services, including development and market research, sales, marketing,
fund management and administration. XAI believes that the investing public can benefit from
new vehicles to access a broad range of alternative investment strategies and managers. XAI
provides individual investors with access to institutional-caliber alternative managers. For
more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services
firm providing M&A, corporate advisory and asset management services to clients. It has
offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser.
Octagon is a 25+ year old, $32.9B below-investment grade corporate credit investment adviser
focused on leveraged loan, high yield bond and structured credit (CLO debt and equity)
investments. Through fundamental credit analysis and active portfolio management, Octagon's
investment team identifies attractive relative value opportunities across below-investment
grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology
encourage and rely upon dynamic internal communication to manage portfolio risk. Over its
history, the firm has applied a disciplined, repeatable and scalable approach in its effort
to generate attractive risk-adjusted returns for its investors. For more information, please
visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE |
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Common Shares Distribution of $0.073 per Share
August 1, 2022, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's common shares (NYSE: XFLT), payable on September 1, 2022 to common shareholders of record as of August 15, 2022, as noted below. The amount of the distribution represents no change from the previous month's distribution amount.
The following dates apply to the declaration:
Ex-Dividend Date | August 15, 2022 | |
Record Date | August 16, 2022 | |
Payable Date | September 1, 2022 | |
Amount | $0.073 per common share | |
Change from Previous Month | No change |
Common share distributions may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2022 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The Trust's net investment income and capital gain can vary significantly over time; however, the Trust seeks to maintain more stable common share monthly distributions over time. The Trust's investments in CLOs are subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States ("U.S. GAAP"), and, as a result, there may be significant differences between the Trust's GAAP income and its taxable income. The Trust's final taxable income for the current fiscal year will not be known until the Trust's tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute to common shareholders by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Trust's fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The common share distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder's tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder's potential gain, or reduce the common shareholder's potential loss, on any subsequent sale or other disposition of common shares.
The distribution shall be paid on the Payment Date unless the payment of such distribution is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law, to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern, or to comply with the applicable terms or financial covenants of the Trust's senior securities.
Future common share distributions will be made if and when declared by the Trust's Board of Trustees, based on a consideration of number of factors, including the Trust's continued compliance with terms and financial covenants of its senior securities, the Trust's net investment income, financial performance and available cash. There can be no assurance that the amount or timing of common share distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of common share distributions in the future.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT," and the Trust's 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol "XFLTPRA."
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based
firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory
services, the firm also provides investment fund structuring and consulting services focused
on registered closed-end funds to meet institutional client needs. XAI offers custom product
build and consulting services, including development and market research, sales, marketing,
fund management and administration. XAI believes that the investing public can benefit from
new vehicles to access a broad range of alternative investment strategies and managers. XAI
provides individual investors with access to institutional-caliber alternative managers. For
more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services
firm providing M&A, corporate advisory and asset management services to clients. It has
offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser.
Octagon is a 25+ year old, $32.4B below-investment grade corporate credit investment adviser
focused on leveraged loan, high yield bond and structured credit (CLO debt and equity)
investments. Through fundamental credit analysis and active portfolio management, Octagon's
investment team identifies attractive relative value opportunities across below-investment
grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology
encourage and rely upon dynamic internal communication to manage portfolio risk. Over its
history, the firm has applied a disciplined, repeatable and scalable approach in its effort
to generate attractive risk-adjusted returns for its investors. For more information, please
visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE |
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Common Shares Distribution and Quarterly Preferred Shares Dividend
July 1, 2022, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.073 per share of the Trust's common shares (NYSE: XFLT). The Trust also declared preferred dividends for the quarter of $0.40625 per share of the Trust's 6.50% Series 2026 Term Preferred Shares (NYSE: XFLTPRA).
The following dates apply to each declaration:
Share Class | Ex-Dividend Date | Record Date | Payable Date | Amount | Change from Previous Declaration |
---|---|---|---|---|---|
XFLT | July 14, 2022 | July 15, 2022 | August 1, 2022 | $0.073 | No Change |
XFLTPRA | July 14, 2022 | July 15, 2022 | August 1, 2022 | $0.40625 | No Change1 |
1 The Trust's 6.50% Series 2026 Term Preferred Shares dividend is calculated based on the preferred shares Liquidation Preference of $25.00 per share and the fixed dividend rate of 6.50%.
Common share distributions may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2022 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The Trust's net investment income and capital gain can vary significantly over time; however, the Trust seeks to maintain more stable common share monthly distributions over time. The Trust's investments in CLOs are subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States ("U.S. GAAP"), and, as a result, there may be significant differences between the Trust's GAAP income and its taxable income. The Trust's final taxable income for the current fiscal year will not be known until the Trust's tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute to common shareholders by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Trust's fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The common share distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder's tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder's potential gain, or reduce the common shareholder's potential loss, on any subsequent sale or other disposition of common shares.
Preferred shareholders are entitled to receive cumulative cash dividends and distributions on the Trust's 6.50% Series 2026 Term Preferred Shares, when, as and if declared by, or under authority granted by, the Board of Trustees of the Trust out of funds legally available for distribution and in preference to dividends and distributions on common shares. If the Trust is unable to distribute the full dividend amount due in a dividend period on the Trust's 6.50% Series 2026 Term Preferred Shares, the dividends will be distributed on a pro rata basis among the preferred shareholders.
Distributions and dividends shall be paid on the Payable Date listed above unless the payment of such distribution or dividend is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law, to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern or, with regard to the Trust's regular monthly distribution to common shareholders, to comply with the applicable terms or financial covenants of the Trust's senior securities.
Future common share distributions will be made if and when declared by the Trust's Board of Trustees, based on a consideration of number of factors, including the Trust's continued compliance with terms and financial covenants of its senior securities, the Trust's net investment income, financial performance and available cash. There can be no assurance that the amount or timing of common share distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of common share distributions in the future.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT," and the Trust's 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol "XFLTPRA."
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based
firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory
services, the firm also provides investment fund structuring and consulting services focused
on registered closed-end funds to meet institutional client needs. XAI offers custom product
build and consulting services, including development and market research, sales, marketing,
fund management and administration. XAI believes that the investing public can benefit from
new vehicles to access a broad range of alternative investment strategies and managers. XAI
provides individual investors with access to institutional-caliber alternative managers. For
more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services
firm providing M&A, corporate advisory and asset management services to clients. It has
offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser.
Octagon is a 25+ year old, $32.1B below-investment grade corporate credit investment adviser
focused on leveraged loan, high yield bond and structured credit (CLO debt and equity)
investments. Through fundamental credit analysis and active portfolio management, Octagon's
investment team identifies attractive relative value opportunities across below-investment
grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology
encourage and rely upon dynamic internal communication to manage portfolio risk. Over its
history, the firm has applied a disciplined, repeatable and scalable approach in its effort
to generate attractive risk-adjusted returns for its investors. For more information, please
visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE |
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Closes Private Placement of Convertible Preferred Shares and Registered Direct Placement of Common Shares
CHICAGO, Illinois – June 30, 2022 – XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") (NYSE: XFLT), a diversified, closed-end management investment company with an investment objective to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle, has closed its previously announced private placement of 400,000 shares of the Trust's 6.00% Series 2029 Convertible Preferred Shares due June 2029, liquidation preference $25.00 per share, and registered direct placement of 1,450,000 common shares of beneficial interest at a price of $6.90 per share.
As a result, the Trust received net proceeds from the transactions of approximately $19.2 million. The Trust intends to use the net proceeds from the offerings to invest in accordance with its investment objective and policies, to pay down outstanding borrowings under its credit facility and/or for general working capital purposes.
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory services, the firm also provides investment fund structuring and consulting services focused on registered closed-end funds to meet institutional client needs. XAI offers custom product build and consulting services, including development and market research, sales, marketing, fund management and administration. XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. XAI provides individual investors with access to institutional-caliber alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent financial services firm providing M&A, corporate advisory and asset management services to clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser. Octagon is a 25+ year old, $32.1B below-investment grade corporate credit investment adviser focused on leveraged loan, high yield bond and structured credit (CLO debt and equity) investments. Through fundamental credit analysis and active portfolio management, Octagon's investment team identifies attractive relative value opportunities across below-investment grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology encourage and rely upon dynamic internal communication to manage portfolio risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach in its effort to generate attractive risk-adjusted returns for its investors. For more information, please visit www.octagoncredit.com.
The Trust, XAI and Octagon do not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
This press release contains certain statements that may include "forward-looking statements." Forward-looking statements can be identified by the words "may," "will," "intend," "expect," "estimate," "continue," "plan," "anticipate," and similar terms and the negatives of such terms. By their nature, all forward-looking statements involve risks and uncertainties, and actual results could differ materially from those contemplated by the forward-looking statements. Many factors that could materially affect the Trust's actual results are the performance of the portfolio of securities held by the Trust, the conditions in the U.S. and international financial and other markets, the price at which Preferred Shares trade in the public markets and other factors discussed in the Trust's prospectus supplement and accompanying base prospectus and to be discussed in the Trust's periodic filings with the SEC.
Although the Trust believes that the expectations expressed in such forward-looking statements are reasonable, actual results could differ materially from those expressed or implied in such forward-looking statements. The Trust's future financial condition and results of operations, as well as any forward-looking statements, are subject to change and are subject to inherent risks and uncertainties. You are cautioned not to place undue reliance on these forward-looking statements, which are made as of the date of this press release. Except for the Trust's ongoing obligations under the federal securities laws, the Trust does not intend, and the Trust undertakes no obligation, to update any forward-looking statement.
Company Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 1-888-903-3358
Email: info@xainvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Announces Private Placement of Convertible Preferred Shares and Registered Direct Placement of Common Shares
CHICAGO, Illinois – June 28, 2022 – XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") (NYSE: XFLT), a diversified, closed-end management investment company with an investment objective to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle, has entered into a Purchase Agreement with certain institutional investors for the purchase and sale of 400,000 shares of the Trust's 6.00% Series 2029 Convertible Preferred Shares due June 2029 (the "Convertible Preferred Shares"), liquidation preference $25.00 per share. The Trust expects to receive net proceeds (before expenses) from the sale of the Convertible Preferred Shares of approximately $9.3 million. The offering is expected to close on or about June 30, 2022, subject to the satisfaction of customary closing conditions. In addition, pursuant to Purchase Agreement, the investors have agreed to purchase up to 800,000 additional shares of Convertible Preferred Shares, at one or more subsequent closings on or before June 30, 2023 as determined by the Trust in its discretion.
The Convertible Preferred Shares pay a quarterly dividend at a fixed annual rate of 6.00% of the liquidation preference, or $1.50 per share, per year.
The Trust is required to redeem, out of funds legally available therefor, all outstanding Convertible Preferred Shares on June 30, 2029, or the "Term Redemption Date," at a price equal to the liquidation preference plus an amount equal to accumulated but unpaid dividends and distributions, if any, on such shares (whether or not earned or declared, but excluding interest on such dividends) to, but excluding, the Term Redemption Date.
At any time on or after June 30, 2024, at the Trust's sole option, the Trust may redeem, from time to time, the Convertible Preferred Shares in whole or in part, out of funds legally available for such redemption, at a price per share equal to the sum of the liquidation preference plus an amount equal to accumulated but unpaid dividends, if any, on such shares (whether or not earned or declared, but excluding interest on such dividends) to, but excluding, the date fixed for such redemption.
Each holder of a Convertible Preferred Share shall have the right, at such holder's option, to convert any such Convertible Preferred Share, at any time on or after the date six months after the issuance date of the Convertible Preferred Share (the "Convertibility Date") and prior to the close of business on the business day immediately preceding the Term Redemption Date, into such number of common shares of beneficial interest ("Common Shares") equal to the liquidation preference of the Convertible Preferred Share plus an amount equal to all unpaid dividends and distributions on such Share accumulated to (but excluding) the date of exercise, divided by the Conversion Price. The "Conversion Price" is the greater of (i) the market price per Common Share, represented by the five-day volume-weighted average price ("VWAP") per Common Share ending on the trading day immediately preceding the date of exercise, or (ii) the Trust's most recently reported net asset value per Common Share immediately prior to the date of exercise.
The Convertible Preferred Shares will not be listed on any exchange and may not be transferred without the consent of the Trust.
Additional information regarding the Convertible Preferred Shares are included in a Current Report on Form 8-K to be filed with the U.S. Securities and Exchange Commission ("SEC").
The Convertible Preferred Shares were offered directly to the purchasers without a placement agent, underwriter, broker or dealer.
The Convertible Preferred Shares and the Common Shares into which the Convertible Preferred Shares are convertible are being issued in reliance upon an exemption from registration under the Securities Act of 1933 (the "Securities Act") and have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration with the SEC or an applicable exemption from such registration requirements.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy the Convertible Preferred Shares, nor shall there be any sale of Convertible Preferred Shares in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such jurisdiction.
Concurrently, the Trust has entered into a Purchase Agreement with certain institutional investors for the purchase and sale of Common Shares in a registered direct placement pursuant to the Trust's effective shelf registration statement filed with the SEC. The Trust has agreed to sell 1,450,000 Common Shares at a price of $6.90 per Common Share. The offering is expected to close on or about June 30, 2022, subject to the satisfaction of customary closing conditions. The Trust expects to receive net proceeds (before expenses) from the sale of Common Shares of approximately $10 million.
The Common Shares were offered directly to the purchasers without a placement agent, underwriter, broker or dealer.
The offering of Common Shares may be made only by means of a prospectus.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. The preliminary prospectus supplement, dated June 28, 2022, and accompanying prospectus, dated February 10, 2022, each of which has been filed with the SEC, contain a description of these matters and other important information about the Trust and should be read carefully before investing.
Copies of the preliminary prospectus supplement and accompanying prospectus may be obtained from: XA Investments, Attn: Investor Relations, 321 N. Clark, Suite 2430, Chicago, IL 60654, or by emailing info@xainvestments.com, or by calling 1-888-903-3358.
Investors may also obtain these documents free of charge from the SEC's website at www.sec.gov.
The information in the preliminary prospectus supplement, the accompanying prospectus and this press release is not complete and may be changed. This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
The Trust intends to use the net proceeds from the offerings to invest in accordance with its investment objective and policies, to pay down outstanding borrowings under its credit facility and/or for general working capital purposes.
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory services, the firm also provides investment fund structuring and consulting services focused on registered closed-end funds to meet institutional client needs. XAI offers custom product build and consulting services, including development and market research, sales, marketing, fund management and administration. XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. XAI provides individual investors with access to institutional-caliber alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent financial services firm providing M&A, corporate advisory and asset management services to clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser. Octagon is a 25+ year old, $32.1B below-investment grade corporate credit investment adviser focused on leveraged loan, high yield bond and structured credit (CLO debt and equity) investments. Through fundamental credit analysis and active portfolio management, Octagon's investment team identifies attractive relative value opportunities across below-investment grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology encourage and rely upon dynamic internal communication to manage portfolio risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach in its effort to generate attractive risk-adjusted returns for its investors. For more information, please visit www.octagoncredit.com.
The Trust, XAI and Octagon do not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
This press release contains certain statements that may include "forward-looking statements." Forward-looking statements can be identified by the words "may," "will," "intend," "expect," "estimate," "continue," "plan," "anticipate," and similar terms and the negatives of such terms. By their nature, all forward-looking statements involve risks and uncertainties, and actual results could differ materially from those contemplated by the forward-looking statements. Many factors that could materially affect the Trust's actual results are the performance of the portfolio of securities held by the Trust, the conditions in the U.S. and international financial and other markets, the price at which Preferred Shares trade in the public markets and other factors discussed in the Trust's prospectus supplement and accompanying base prospectus and to be discussed in the Trust's periodic filings with the SEC.
Although the Trust believes that the expectations expressed in such forward-looking statements are reasonable, actual results could differ materially from those expressed or implied in such forward-looking statements. The Trust's future financial condition and results of operations, as well as any forward-looking statements, are subject to change and are subject to inherent risks and uncertainties. You are cautioned not to place undue reliance on these forward-looking statements, which are made as of the date of this press release. Except for the Trust's ongoing obligations under the federal securities laws, the Trust does not intend, and the Trust undertakes no obligation, to update any forward-looking statement.
Company Contact::
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 1-888-903-3358
Email: info@xainvestments.com
www.xainvestments.com
Kimberly Flynn Discusses Increasing RIA Interest in Interval Funds in New FundFire Alts Article
Tom Stabile, editor for FundFire Alts, explores the growing traction of interval funds in the registered investment advisor (RIA) channel in his new article "Cliffwater's $8B Interval Fund Leads Way as RIA Market Sales Boom." The article details the success of the Cliffwater Corporate Lending Fund as a key example of this trend.
A number of managers are pointing towards RIA market sales as a major driver of scalability among interval funds in recent years. Kimberly Flynn, XA Investments Managing Director of Alternative Investments, notes that "just a few years ago, there were only a handful of interval funds with more than $1 billion in assets, but now there are 13."
Cliffwater has been the most successful in the RIA channel, as 97% of the $8.8 billion raised since the inception of its private credit fund in 2019 has come from RIAs, but other funds are seeing increased interest as well. Carlyle's private credit interval fund sits at $1.5 billion in assets, with more than 50% of that generated from the RIA channel.
While the recent success of interval funds in the RIA channel appears promising, exposure is still difficult to attain for most managers. Stringent due diligence requirements and navigating the unique features of interval funds - like quarterly tenders and gating - result in a longer and more involved RIA sales cycle, preventing smaller managers from effectively tapping into the channel. "[I]t's not yet a huge market, with flows favoring the already large firms and known brands," Flynn explains. "It's still a story of the have and have nots."
To read the full article, please click here.
For more information on interval funds, please read our white paper here or contact us at info@xainvestments.com.
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Common Shares Distribution of $0.073 per Share
June 1, 2022, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's common shares (NYSE: XFLT), payable on July 1, 2022 to common shareholders of record as of June 15, 2022, as noted below. The amount of the distribution represents no change from the previous month's distribution amount.
The following dates apply to the declaration:
Ex-Dividend Date | June 14, 2022 | |
Record Date | June 15, 2022 | |
Payable Date | July 1, 2022 | |
Amount | $0.073 per common share | |
Change from Previous Month | No change |
Common share distributions may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2022 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The Trust's net investment income and capital gain can vary significantly over time; however, the Trust seeks to maintain more stable common share monthly distributions over time. The Trust's investments in CLOs are subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States ("U.S. GAAP"), and, as a result, there may be significant differences between the Trust's GAAP income and its taxable income. The Trust's final taxable income for the current fiscal year will not be known until the Trust's tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute to common shareholders by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Trust's fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The common share distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder's tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder's potential gain, or reduce the common shareholder's potential loss, on any subsequent sale or other disposition of common shares.
The distribution shall be paid on the Payment Date unless the payment of such distribution is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law, to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern, or to comply with the applicable terms or financial covenants of the Trust's senior securities.
Future common share distributions will be made if and when declared by the Trust's Board of Trustees, based on a consideration of number of factors, including the Trust's continued compliance with terms and financial covenants of its senior securities, the Trust's net investment income, financial performance and available cash. There can be no assurance that the amount or timing of common share distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of common share distributions in the future.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT," and the Trust's 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol "XFLTPRA."
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based
firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory
services, the firm also provides investment fund structuring and consulting services focused
on registered closed-end funds to meet institutional client needs. XAI offers custom product
build and consulting services, including development and market research, sales, marketing,
fund management and administration. XAI believes that the investing public can benefit from
new vehicles to access a broad range of alternative investment strategies and managers. XAI
provides individual investors with access to institutional-caliber alternative managers. For
more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services
firm providing M&A, corporate advisory and asset management services to clients. It has
offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser.
Octagon is a 25+ year old, $32.1B below-investment grade corporate credit investment adviser
focused on leveraged loan, high yield bond and structured credit (CLO debt and equity)
investments. Through fundamental credit analysis and active portfolio management, Octagon's
investment team identifies attractive relative value opportunities across below-investment
grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology
encourage and rely upon dynamic internal communication to manage portfolio risk. Over its
history, the firm has applied a disciplined, repeatable and scalable approach in its effort
to generate attractive risk-adjusted returns for its investors. For more information, please
visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE |
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
New Ignites Article on the ARK Venture Fund Features Insights from Kimberly Flynn
Ignites' Jackie Noblett explores the implications of updated terms in the ARK Venture Fund's most recent SEC filing in her new article, "Ark's Interval Fund Casts Wide Range for Startups." Specifically, the prospectus allows a wide 20-85% allocation to securities of private companies and the rest in public stocks.
Kimberly Flynn, XA Investments Managing Director of Alternative Investments, comments on potential challenges for this fund. For example, ARK needs "to give themselves maximum flexibility to execute their strategy, which, frankly hurts credibility," she says. While this flexibility can be particularly important during the fund's initial invest-up period, large allocation fluctuations can cause confusion around the fund's investment strategy. "People will ask, 'Well, what is this [fund?]," explains Flynn.
ARK plans to distribute the Venture Fund through the Titan alternative investments digital platform, which will charge the fund 65 basis points for distribution and shareholder servicing. The Titan platform aims to make this fund and other hedge-fund-like strategies more easily accessible to individual investors.
Given their more complex structure, interval funds also tend to charge higher management fees than ETFs, which may come as a surprise to ARK's retail investor base. While the ARK Innovation ETF charges a 75-basis point fee, interval fund management fees for private equity or venture capital funds can climb as high as 7%. For individual investors who see high fees for this interval fund, "there's going to be sticker shock there," Flynn says.
To read the full article, please click here.
For more information on interval funds, please read our white paper here or contact us at info@xainvestments.com.
XAI Octagon Floating Rate & Alternative Income Term Trust Will Host Q1 2022 Quarterly Webinar on May 26, 2022
May 5, 2022, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust (NYSE: XFLT) (the "Trust") today announced that it plans to host the Trust's Quarterly Webinar on May 26, 2022 at 11:00 am (Eastern Time). The Trust will release earnings for the three-month period ending March 31, 2022. Robert Chenoweth, Vice President at XA Investments ("XAI") will moderate the Q&A style webinar with Kimberly Flynn, Managing Director at XAI, and Gretchen Lam, Senior Portfolio Manager at Octagon Credit Investors.
TO JOIN VIA WEB: Please go to the Knowledge Bank section of xainvestments.com or click here to find the online registration link.
TO USE YOUR TELEPHONE: After joining via web, if you prefer to use your phone for audio, you must select "Use Telephone" and call in using the numbers below.
United States: +1 (914) 614-3221
Access Code: 421-575-072
Audio PIN: Shown after joining the webinar
Webinar ID: 371-848-515
REPLAY: A replay of the webinar will be available in the Knowledge Bank section of xainvestments.com or through the same registration link previously used.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT," and the Trust's 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol "XFLTPRA."
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory services, the firm also provides investment fund structuring and consulting services focused on registered closed-end funds to meet institutional client needs. XAI offers custom product build and consulting services, including development and market research, sales, marketing, fund management and administration. XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. XAI provides individual investors with access to institutional-caliber alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services firm providing M&A, corporate advisory and asset management services to clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser. Octagon is a 25+ year old, $31.0B below-investment grade corporate credit investment adviser focused on leveraged loan, high yield bond and structured credit (CLO debt and equity) investments. Through fundamental credit analysis and active portfolio management, Octagon's investment team identifies attractive relative value opportunities across below-investment grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology encourage and rely upon dynamic internal communication to manage portfolio risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach in its effort to generate attractive risk-adjusted returns for its investors. For more information, please visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Robert Chenoweth, Vice President – Investor Relations
XA Investments LLC
Phone: 888-903-3358
Email: RChenoweth@XAInvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Common Shares Distribution of $0.073 per Share
May 2, 2022, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's common shares (NYSE: XFLT), payable on June 1, 2022 to common shareholders of record as of May 16, 2022, as noted below. The amount of the distribution represents no change from the previous month's distribution amount.
The following dates apply to the declaration:
Ex-Dividend Date May 13, 2022
Record Date May 16, 2022
Payable Date June 1, 2022
Amount $0.073 per common share
Change from Previous Month: No change
Common share distributions may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2022 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The Trust's net investment income and capital gain can vary significantly over time; however, the Trust seeks to maintain more stable common share monthly distributions over time. The Trust's investments in CLOs are subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States ("U.S. GAAP"), and, as a result, there may be significant differences between the Trust's GAAP income and its taxable income. The Trust's final taxable income for the current fiscal year will not be known until the Trust's tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute to common shareholders by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Trust's fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The common share distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder's tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder's potential gain, or reduce the common shareholder's potential loss, on any subsequent sale or other disposition of common shares.
The distribution shall be paid on the Payment Date unless the payment of such distribution is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law, to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern, or to comply with the applicable terms or financial covenants of the Trust's senior securities.
Future common share distributions will be made if and when declared by the Trust's Board of Trustees, based on a consideration of number of factors, including the Trust's continued compliance with terms and financial covenants of its senior securities, the Trust's net investment income, financial performance and available cash. There can be no assurance that the amount or timing of common share distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of common share distributions in the future.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT," and the Trust's 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol "XFLTPRA."
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory services, the firm also provides investment fund structuring and consulting services focused on registered closed-end funds to meet institutional client needs. XAI offers custom product build and consulting services, including development and market research, sales, marketing, fund management and administration. XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. XAI provides individual investors with access to institutional-caliber alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services firm providing M&A, corporate advisory and asset management services to clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser. Octagon is a 25+ year old, $31.0B below-investment grade corporate credit investment adviser focused on leveraged loan, high yield bond and structured credit (CLO debt and equity) investments. Through fundamental credit analysis and active portfolio management, Octagon's investment team identifies attractive relative value opportunities across below-investment grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology encourage and rely upon dynamic internal communication to manage portfolio risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach in its effort to generate attractive risk-adjusted returns for its investors. For more information, please visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Common Shares Distribution and Quarterly Preferred Shares Dividend
April 1, 2022, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.073 per share of the Trust's common shares (NYSE: XFLT). The Trust also declared preferred dividends for the quarter of $0.40625 per share of the Trust's 6.50% Series 2026 Term Preferred Shares (NYSE: XFLTPRA).
The following dates apply to each declaration:
Share Class | Ex-Dividend Date | Record Date | Payable Date | Amount | Change from Previous Declaration |
---|---|---|---|---|---|
XFLT | April 14, 2022 | April 18, 2022 | May 2, 2022 | $0.073 | No Change |
XFLTPRA | April 14, 2022 | April 18, 2022 | May 2, 2022 | $0.40625 | No Change1 |
Common share distributions may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2022 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The Trust's net investment income and capital gain can vary significantly over time; however, the Trust seeks to maintain more stable common share monthly distributions over time. The Trust's investments in CLOs are subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States ("U.S. GAAP"), and, as a result, there may be significant differences between the Trust's GAAP income and its taxable income. The Trust's final taxable income for the current fiscal year will not be known until the Trust's tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute to common shareholders by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Trust's fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The common share distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder's tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder's potential gain, or reduce the common shareholder's potential loss, on any subsequent sale or other disposition of common shares.
Preferred shareholders are entitled to receive cumulative cash dividends and distributions on the Trust's 6.50% Series 2026 Term Preferred Shares, when, as and if declared by, or under authority granted by, the Board of Trustees of the Trust out of funds legally available for distribution and in preference to dividends and distributions on common shares. If the Trust is unable to distribute the full dividend amount due in a dividend period on the Trust's 6.50% Series 2026 Term Preferred Shares, the dividends will be distributed on a pro rata basis among the preferred shareholders.
Distributions and dividends shall be paid on the Payable Date listed above unless the payment of such distribution or dividend is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law, to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern or, with regard to the Trust's regular monthly distribution to common shareholders, to comply with the applicable terms or financial covenants of the Trust's senior securities.
Future common share distributions will be made if and when declared by the Trust's Board of Trustees, based on a consideration of number of factors, including the Trust's continued compliance with terms and financial covenants of its senior securities, the Trust's net investment income, financial performance and available cash. There can be no assurance that the amount or timing of common share distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of common share distributions in the future.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT," and the Trust's 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol "XFLTPRA."
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory services, the firm also provides investment fund structuring and consulting services focused on registered closed-end funds to meet institutional client needs. XAI offers custom product build and consulting services, including development and market research, sales, marketing, fund management and administration. XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. XAI provides individual investors with access to institutional-caliber alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services firm providing M&A, corporate advisory and asset management services to clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser. Octagon is a 25+ year old, $30.7B below-investment grade corporate credit investment adviser focused on leveraged loan, high yield bond and structured credit (CLO debt and equity) investments. Through fundamental credit analysis and active portfolio management, Octagon's investment team identifies attractive relative value opportunities across below-investment grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology encourage and rely upon dynamic internal communication to manage portfolio risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach in its effort to generate attractive risk-adjusted returns for its investors. For more information, please visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
1The Trust's 6.50% Series 2026 Term Preferred Shares dividend is calculated based on the preferred shares Liquidation Preference of $25.00 per share and the fixed dividend rate of 6.50%.
Kimberly Flynn Comments on Wave of Retail Alts Products in New FundFire Alts Article
FundFire Alts editor Tom Stabile writes about the surge in new retail products being launched by alternatives managers in his recent article, "Bain, BlackRock, Nuveen, Oaktree Prep New BDCs for Advisor Market." Fund managers are increasingly exploring fund structures including non-traded BDCs, interval funds and tender offer funds, due to their ability to offer individual investors access to alternatives investments.
Kimberly Flynn, XA Investments Managing Director of Alternative Investments, discusses the measurable impact of this trend on the interval fund market. "We've moved past the initial steps," she says. "Our data list shows that we now have 10 interval funds with $1 billion or more in assets, three or four with $5 billion or more. That draws people to the space because we now have proof of concept - two years ago it was one or two funds above $1 billion."
Flynn also highlights the investor demand for more alternative products, particularly in the current inflationary and rising rate environment. "Frankly, over the last five to 10 years, many investors felt they didn't need alts because they were satisfied with their equity portfolios," she explains.
To read the full article, please click here.
For more information on the various fund structures mentioned, please contact us at info@xainvestments.com.
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Common Shares Distribution of $0.073 per Share
March 1, 2022, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's common shares (NYSE: XFLT), payable on April 1, 2022 to common shareholders of record as of March 15, 2022, as noted below. The amount of the distribution represents no change from the previous month's distribution amount.
The following dates apply to the declaration:
Ex-Dividend Date March 14, 2022
Record Date March 15, 2022
Payable Date April 1, 2022
Amount $0.073 per common share
Change from Previous Month: No change
Common share distributions may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2021 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The Trust's net investment income and capital gain can vary significantly over time; however, the Trust seeks to maintain more stable common share monthly distributions over time. The Trust's investments in CLOs are subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States ("U.S. GAAP"), and, as a result, there may be significant differences between the Trust's GAAP income and its taxable income. The Trust's final taxable income for the current fiscal year will not be known until the Trust's tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute to common shareholders by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Trust's fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The common share distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder's tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder's potential gain, or reduce the common shareholder's potential loss, on any subsequent sale or other disposition of common shares.
The distribution shall be paid on the Payment Date unless the payment of such distribution is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law, to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern, or to comply with the applicable terms or financial covenants of the Trust's senior securities.
Future common share distributions will be made if and when declared by the Trust's Board of Trustees, based on a consideration of number of factors, including the Trust's continued compliance with terms and financial covenants of its senior securities, the Trust's net investment income, financial performance and available cash. There can be no assurance that the amount or timing of common share distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of common share distributions in the future.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT," and the Trust's 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol "XFLTPRA."
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based
firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory
services, the firm also provides investment fund structuring and consulting services focused
on registered closed-end funds to meet institutional client needs. XAI offers custom product
build and consulting services, including development and market research, sales, marketing,
fund management and administration. XAI believes that the investing public can benefit from
new vehicles to access a broad range of alternative investment strategies and managers. XAI
provides individual investors with access to institutional-caliber alternative managers. For
more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services
firm providing M&A, corporate advisory and asset management services to clients. It has
offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser.
Octagon is a 25+ year old, $30.6B below-investment grade corporate credit investment adviser
focused on leveraged loan, high yield bond and structured credit (CLO debt and equity)
investments. Through fundamental credit analysis and active portfolio management, Octagon's
investment team identifies attractive relative value opportunities across below-investment
grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology
encourage and rely upon dynamic internal communication to manage portfolio risk. Over its
history, the firm has applied a disciplined, repeatable and scalable approach in its effort
to generate attractive risk-adjusted returns for its investors. For more information, please
visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Common Shares Distribution of $0.073 per Share
February 1, 2022, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's common shares (NYSE: XFLT), payable on March 1, 2022 to common shareholders of record as of February 15, 2022, as noted below. The amount of the distribution represents no change from the previous month's distribution amount.
The following dates apply to the declaration:
Ex-Dividend Date February 14, 2022
Record Date February 15, 2022
Payable Date March 1, 2022
Amount $0.073 per common share
Change from Previous Month: No change
Common share distributions may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2021 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The Trust's net investment income and capital gain can vary significantly over time; however, the Trust seeks to maintain more stable common share monthly distributions over time. The Trust's investments in CLOs are subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States ("U.S. GAAP"), and, as a result, there may be significant differences between the Trust's GAAP income and its taxable income. The Trust's final taxable income for the current fiscal year will not be known until the Trust's tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute to common shareholders by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Trust's fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The common share distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder's tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder's potential gain, or reduce the common shareholder's potential loss, on any subsequent sale or other disposition of common shares.
The distribution shall be paid on the Payment Date unless the payment of such distribution is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law, to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern, or to comply with the applicable terms or financial covenants of the Trust's senior securities.
Future common share distributions will be made if and when declared by the Trust's Board of Trustees, based on a consideration of number of factors, including the Trust's continued compliance with terms and financial covenants of its senior securities, the Trust's net investment income, financial performance and available cash. There can be no assurance that the amount or timing of common share distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of common share distributions in the future.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT," and the Trust's 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol "XFLTPRA."
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based
firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory
services, the firm also provides investment fund structuring and consulting services focused
on registered closed-end funds to meet institutional client needs. XAI offers custom product
build and consulting services, including development and market research, sales, marketing,
fund management and administration. XAI believes that the investing public can benefit from
new vehicles to access a broad range of alternative investment strategies and managers. XAI
provides individual investors with access to institutional-caliber alternative managers. For
more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services
firm providing M&A, corporate advisory and asset management services to clients. It has
offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser.
Octagon is a 25+ year old, $30.5B below-investment grade corporate credit investment adviser
focused on leveraged loan, high yield bond and structured credit (CLO debt and equity)
investments. Through fundamental credit analysis and active portfolio management, Octagon's
investment team identifies attractive relative value opportunities across below-investment
grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology
encourage and rely upon dynamic internal communication to manage portfolio risk. Over its
history, the firm has applied a disciplined, repeatable and scalable approach in its effort
to generate attractive risk-adjusted returns for its investors. For more information, please
visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Common Shares Distribution and Quarterly Preferred Shares Dividend
January 3, 2022, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.073 per share of the Trust's common shares (NYSE: XFLT). The Trust also declared preferred dividends for the quarter of $0.40625 per share of the Trust's 6.50% Series 2026 Term Preferred Shares (NYSE: XFLTPRA).
The following dates apply to each declaration:
Share Class | Ex-Dividend | Date Record | Date Payable | Date Amount | Change from Previous Declaration |
---|---|---|---|---|---|
XFLT | January 14, 2022 | January 18, 2022 | February 1, 2022 | $0.073 | No Change |
XFLTPRA | January 14, 2022 | January 18, 2022 | January 31, 2022 | $0.40625 | No Change1 |
Common share distributions may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2022 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The Trust's net investment income and capital gain can vary significantly over time; however, the Trust seeks to maintain more stable common share monthly distributions over time. The Trust's investments in CLOs are subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States ("U.S. GAAP"), and, as a result, there may be significant differences between the Trust's GAAP income and its taxable income. The Trust's final taxable income for the current fiscal year will not be known until the Trust's tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute to common shareholders by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Trust's fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The common share distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder's tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder's potential gain, or reduce the common shareholder's potential loss, on any subsequent sale or other disposition of common shares.
Preferred shareholders are entitled to receive cumulative cash dividends and distributions on the Trust's 6.50% Series 2026 Term Preferred Shares, when, as and if declared by, or under authority granted by, the Board of Trustees of the Trust out of funds legally available for distribution and in preference to dividends and distributions on common shares. If the Trust is unable to distribute the full dividend amount due in a dividend period on the Trust's 6.50% Series 2026 Term Preferred Shares, the dividends will be distributed on a pro rata basis among the preferred shareholders.
Distributions and dividends shall be paid on the Payable Date listed above unless the payment of such distribution or dividend is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law, to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern or, with regard to the Trust's regular monthly distribution to common shareholders, to comply with the applicable terms or financial covenants of the Trust's senior securities.
Future common share distributions will be made if and when declared by the Trust's Board of Trustees, based on a consideration of number of factors, including the Trust's continued compliance with terms and financial covenants of its senior securities, the Trust's net investment income, financial performance and available cash. There can be no assurance that the amount or timing of common share distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of common share distributions in the future.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT," and the Trust's 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol "XFLTPRA."
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory services, the firm also provides investment fund structuring and consulting services focused on registered closed-end funds to meet institutional client needs. XAI offers custom product build and consulting services, including development and market research, sales, marketing, fund management and administration. XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. XAI provides individual investors with access to institutional-caliber alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services firm providing M&A, corporate advisory and asset management services to clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser. Octagon is a 25+ year old, $30.4B below-investment grade corporate credit investment adviser focused on leveraged loan, high yield bond and structured credit (CLO debt and equity) investments. Through fundamental credit analysis and active portfolio management, Octagon's investment team identifies attractive relative value opportunities across below-investment grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology encourage and rely upon dynamic internal communication to manage portfolio risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach in its effort to generate attractive risk-adjusted returns for its investors. For more information, please visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
1The Trust's 6.50% Series 2026 Term Preferred Shares dividend is calculated based on the preferred shares Liquidation Preference of $25.00 per share and the fixed dividend rate of 6.50%.
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Common Shares Distribution of $0.073 per Share
December 1, 2021, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's common shares (NYSE: XFLT), payable on December 31, 2021 to common shareholders of record as of December 15, 2021, as noted below. The amount of the distribution represents no change from the previous month's distribution amount.
The following dates apply to the declaration:
Ex-Dividend Date December 14, 2021
Record Date December 15, 2021
Payable Date December 31, 2021
Amount $0.073 per common share
Change from Previous Month: No change
Common share distributions may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2021 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The Trust's net investment income and capital gain can vary significantly over time; however, the Trust seeks to maintain more stable common share monthly distributions over time. The Trust's investments in CLOs are subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States ("U.S. GAAP"), and, as a result, there may be significant differences between the Trust's GAAP income and its taxable income. The Trust's final taxable income for the current fiscal year will not be known until the Trust's tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute to common shareholders by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Trust's fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The common share distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder's tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder's potential gain, or reduce the common shareholder's potential loss, on any subsequent sale or other disposition of common shares.
The distribution shall be paid on the Payment Date unless the payment of such distribution is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law, to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern, or to comply with the applicable terms or financial covenants of the Trust's senior securities.
Future common share distributions will be made if and when declared by the Trust's Board of Trustees, based on a consideration of number of factors, including the Trust's continued compliance with terms and financial covenants of its senior securities, the Trust's net investment income, financial performance and available cash. There can be no assurance that the amount or timing of common share distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of common share distributions in the future.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT," and the Trust's 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol "XFLTPRA."
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based
firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory
services, the firm also provides investment fund structuring and consulting services focused
on registered closed-end funds to meet institutional client needs. XAI offers custom product
build and consulting services, including development and market research, sales, marketing,
fund management and administration. XAI believes that the investing public can benefit from
new vehicles to access a broad range of alternative investment strategies and managers. XAI
provides individual investors with access to institutional-caliber alternative managers. For
more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services
firm providing M&A, corporate advisory and asset management services to clients. It has
offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser.
Octagon is a 25+ year old, $29.7B below-investment grade corporate credit investment adviser
focused on leveraged loan, high yield bond and structured credit (CLO debt and equity)
investments. Through fundamental credit analysis and active portfolio management, Octagon's
investment team identifies attractive relative value opportunities across below-investment
grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology
encourage and rely upon dynamic internal communication to manage portfolio risk. Over its
history, the firm has applied a disciplined, repeatable and scalable approach in its effort
to generate attractive risk-adjusted returns for its investors. For more information, please
visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
Kimberly Flynn Discusses the Rise of Interval Funds in Citywire RIA Magazine
In the November edition of its RIA magazine, Citywire published an article about the increased adoption of interval funds across certain platforms. In the current low-yield environment, many wealth managers are under pressure to diversify their target allocations beyond the traditional 60/40 split. Investors are looking for a way to make up for lackluster returns from traditional fixed income and hedge equity risk. According to the article, interval funds may offer a solution.
Historically, gatekeepers have been hesitant to include interval funds on their platforms because of their limited liquidity, higher fees and minimum investments. Many of these barriers have recently softened as the structure of interval funds may limit perceived volatility. Investors and gatekeepers have begun to notice the fund structure, and many gatekeepers are beginning to add interval funds to their platforms. XA Investments Managing Director of Alternative Investments Kimberly Flynn notes that interval fund flows have increased through several channels as "technology makes it easier to automate the quarterly offering periods and subscription document process, making it easier to manage the administrative functions of the funds."
Furthermore, interval funds can be a lower-cost vehicle to access alternative assets, such as private credit strategies and real estate, and are expected to continue to gain popularity amongst large asset managers. Flynn says, "as long as large asset managers enter the space, those firms have the ability to put pressure on gatekeepers to have these funds included alongside their other offerings on the platform." Notably, gatekeepers are recognizing the demand for these funds and are working to do just that.
For more information on Citywire publications, please click here.
To read XAI's white paper on Interval Funds, please click here.
Risks
The information in this article is for informational and educational purposes only and does not constitute legal, tax, investment or other professional advice on any subject matter. Further, the information is not all-inclusive and should not be relied upon as such. An investment in CEFs involves risks, including loss of principal. Performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be lower or higher than performance data quoted. Diversification does not eliminate the risk of experiencing investment losses. You should not use this communication as a substitute for your own judgment, and you should consult professional advisors before making any investment decisions. This information may contain "forward looking" information that is not purely historical in nature, including projections, forecasts, estimates of market returns, and proposed portfolio compositions. There is no guarantee that any forecasts will come to pass. This information does not constitute a solicitation of an offer to sell or buy any specific security offering. Such an offering is made by the applicable prospectus only. A prospectus should be read carefully by an investor before investing. Investors are advised to consider investment objectives, risks, charges and expenses carefully before investing. Financial advisors should determine if the risks associated with an investment are consistent with their client's investment objectives.
New Citywire Article on Interval Funds Features Kimberly Flynn
Citywire's Nicole Piper explores the structural soundness of interval funds and their lack of popularity in recent years in her new article, "Gatekeepers debate the pros and cons of interval funds." The article features insights from a variety of asset management professionals, who debate the pros and cons of the structure in theory and in practice.
Interval funds are a type of closed-end fund that are non-listed and continuously offered. They provide liquidity to shareholders through periodic repurchases that occur at specified "intervals," typically every three, six or 12 months. This limited liquidity requirement allows the interval fund structure to house less-liquid alternative investments, which may have the ability to generate liquidity premiums over more liquid assets.
Kimberly Flynn, XA Investments Managing Director of Alternative Investments, contributes to the article, offering one explanation for the lack of widespread popularity for interval funds offering alternative investments. "If you're in a continuous inflow situation, you're not worried about meeting redemptions, but I think there was some frustration [in 2020], because people get gated," she said of the outflows from interval funds witnessed last year. "Some of the sponsors and sales teams, I think, sell them like mutual funds, and if it's sold like a mutual fund and you get gated, it's upsetting and you have to find liquidity elsewhere."
To read the full article, please click here.
To read XAI's white paper on Interval Funds, please click here.
Risks
The information in this article is for informational and educational purposes only and does not constitute legal, tax, investment or other professional advice on any subject matter. Further, the information is not all-inclusive and should not be relied upon as such. An investment in CEFs involves risks, including loss of principal. Performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be lower or higher than performance data quoted. Diversification does not eliminate the risk of experiencing investment losses. You should not use this communication as a substitute for your own judgment, and you should consult professional advisors before making any investment decisions. This information may contain "forward looking" information that is not purely historical in nature, including projections, forecasts, estimates of market returns, and proposed portfolio compositions. There is no guarantee that any forecasts will come to pass. This information does not constitute a solicitation of an offer to sell or buy any specific security offering. Such an offering is made by the applicable prospectus only. A prospectus should be read carefully by an investor before investing. Investors are advised to consider investment objectives, risks, charges and expenses carefully before investing. Financial advisors should determine if the risks associated with an investment are consistent with their client's investment objectives.
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Common Shares Distribution of $0.073 per Share
November 1, 2021, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's common shares (NYSE: XFLT), payable on December 1, 2021 to common shareholders of record as of November 16, 2021, as noted below. The amount of the distribution represents no change from the previous month's distribution amount.
The following dates apply to the declaration:
Ex-Dividend Date November 15, 2021
Record Date November 16, 2021
Payable Date December 1, 2021
Amount $0.073 per common share
Change from Previous Month: No change
Common share distributions may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2021 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The Trust's net investment income and capital gain can vary significantly over time; however, the Trust seeks to maintain more stable common share monthly distributions over time. The Trust's investments in CLOs are subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States ("U.S. GAAP"), and, as a result, there may be significant differences between the Trust's GAAP income and its taxable income. The Trust's final taxable income for the current fiscal year will not be known until the Trust's tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute to common shareholders by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Trust's fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The common share distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder's tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder's potential gain, or reduce the common shareholder's potential loss, on any subsequent sale or other disposition of common shares.
The distribution shall be paid on the Payment Date unless the payment of such distribution is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law, to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern, or to comply with the applicable terms or financial covenants of the Trust's senior securities.
Future common share distributions will be made if and when declared by the Trust's Board of Trustees, based on a consideration of number of factors, including the Trust's continued compliance with terms and financial covenants of its senior securities, the Trust's net investment income, financial performance and available cash. There can be no assurance that the amount or timing of common share distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of common share distributions in the future.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT," and the Trust's 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol "XFLTPRA."
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based
firm founded by XMS Capital
Partners in April, 2016. In addition to investment advisory services, the firm also provides
investment fund structuring
and consulting services focused on registered closed-end funds to meet institutional client
needs. XAI offers custom
product build and consulting services, including development and market research, sales,
marketing, fund management and
administration. XAI believes that the investing public can benefit from new vehicles to
access a broad range of
alternative investment strategies and managers. XAI provides individual investors with
access to institutional-caliber
alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services
firm providing M&A,
corporate advisory and asset management services to clients. It has offices in Chicago,
Boston and London. For more
information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser.
Octagon is a 25+ year old, $29.1B below-investment grade corporate credit investment adviser
focused on leveraged loan, high yield bond and structured credit (CLO debt and equity)
investments.Through fundamental credit analysis and active portfolio
management, Octagon's investment team identifies attractive relative value opportunities
across below-investment grade
asset classes, sectors and issuers. Octagon's investment philosophy and methodology
encourage and rely upon dynamic
internal communication to manage portfolio risk. Over its history, the firm has applied a
disciplined, repeatable and
scalable approach in its effort to generate attractive risk-adjusted returns for its
investors. For more information,
please visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Common Shares Distribution and Quarterly Preferred Shares Dividend
October 1, 2021, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.073 per share of the Trust's common shares (NYSE: XFLT). The Trust also declared preferred dividends for the third quarter of $0.40625 per share of the Trust's 6.50% Series 2026 Term Preferred Shares (NYSE: XFLTPRA).
The following dates apply to each declaration:
Share Class | Ex-Dividend | Date Record | Date Payable | Date Amount | Change from Previous Declaration |
---|---|---|---|---|---|
XFLT | October 14, 2021 | October 15, 2021 | November 1, 2021 | $0.073 | No Change |
XFLTPRA | October 14, 2021 | October 15, 2021 | November 1, 2021 | $0.40625 | No Change1 |
Common share distributions may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2021 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The Trust's net investment income and capital gain can vary significantly over time; however, the Trust seeks to maintain more stable common share monthly distributions over time. The Trust's investments in CLOs are subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States ("U.S. GAAP"), and, as a result, there may be significant differences between the Trust's GAAP income and its taxable income. The Trust's final taxable income for the current fiscal year will not be known until the Trust's tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute to common shareholders by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Trust's fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The common share distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder's tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder's potential gain, or reduce the common shareholder's potential loss, on any subsequent sale or other disposition of common shares.
Preferred shareholders are entitled to receive cumulative cash dividends and distributions on the Trust's 6.50% Series 2026 Term Preferred Shares, when, as and if declared by, or under authority granted by, the Board of Trustees of the Trust out of funds legally available for distribution and in preference to dividends and distributions on common shares. If the Trust is unable to distribute the full dividend amount due in a dividend period on the Trust's 6.50% Series 2026 Term Preferred Shares, the dividends will be distributed on a pro rata basis among the preferred shareholders.
Distributions and dividends shall be paid on the Payable Date listed above unless the payment of such distribution or dividend is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law, to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern or, with regard to the Trust's regular monthly distribution to common shareholders, to comply with the applicable terms or financial covenants of the Trust's senior securities.
Future common share distributions will be made if and when declared by the Trust's Board of Trustees, based on a consideration of a number of factors, including the Trust's continued compliance with terms and financial covenants of its senior securities, the Trust's net investment income, financial performance and available cash. There can be no assurance that the amount or timing of common share distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of common share distributions in the future.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT," and the Trust's 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol "XFLTPRA."
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory services, the firm also provides investment fund structuring and consulting services focused on registered closed-end funds to meet institutional client needs. XAI offers custom product build and consulting services, including development and market research, sales, marketing, fund management and administration. XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. XAI provides individual investors with access to institutional-caliber alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services firm providing M&A, corporate advisory and asset management services to clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser. Octagon is a 25+ year old, $29.0B below-investment grade corporate credit investment adviser focused on leveraged loan, high yield bond and structured credit (CLO debt and equity) investments. Through fundamental credit analysis and active portfolio management, Octagon's investment team identifies attractive relative value opportunities across below-investment grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology encourage and rely upon dynamic internal communication to manage portfolio risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach in its effort to generate attractive risk-adjusted returns for its investors. For more information, please visit www.octagoncredit.com.
* * *
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
1The Trust's 6.50% Series 2026 Term Preferred Shares dividend is calculated based on the preferred shares Liquidation Preference of $25.00 per share and the fixed dividend rate of 6.50%.
Kimberly Flynn to Present on Structural Advantages of Interval Funds at Upcoming Sub-Advised Funds Forum
Foundation Research Associates released an article about the upcoming 32nd Sub-Advised Funds Forum taking place on September 20-21 where Kimberly Flynn, Managing Director at XA Investments, will participate as a panelist. The Sub-Advised Funds Forum is the leading event for asset managers, wholesalers, and distributors to connect with peers, exchange ideas, and keep up with a dynamically changing environment.
Ms. Flynn will join a panel focused on new and rising vehicle structures and product types in the sub-advisory space where she will explore new developments in the closed-end marketplace, with a particular focus on interval funds.
Interval funds are a growing area in the market as an income focused product in an environment where it can be challenging to find attractive levels of income. "There's going to be a lot of interest in managers that can develop either organic or synthetic forms of income and distribute that to investors," says Flynn. "Income-oriented products will be in demand going forward partly because products that exist today don't yield enough to be attractive to investors. So that's one of the interesting challenges and it's an opportunity for these firms, if they can address it, to be successful and raise capital."
Flynn will be joined by moderator Atticus Fallon, Business Development and Client Relations, GMO, and fellow panelists Jonathan Kreider, SVP, Head of Great-West Investments, Great-West Investments, and David Kushner, Founding Partner, Global Asset Management Consultants, for the comprehensive discussion.
To read the full article, please click here.
XAI Octagon Floating Rate & Alternative Income Term Trust Announces Direct Offering of Preferred Shares
CHICAGO, Illinois – September 8, 2021 – XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") (NYSE: XFLT), a diversified, closed-end management investment company with an investment objective to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle, has entered into a purchase agreement with certain institutional investors for the purchase and sale of 400,000 shares of its 6.50% Series 2026 Term Preferred Shares (the "Preferred Shares") in a registered direct offering pursuant to the Trust's effective shelf registration statement filed with the U.S. Securities and Exchange Commission (the "SEC"). Purchasers are purchasing Preferred Shares at the liquidation preference $25.00 per Preferred Share, resulting in proceeds (before expenses) of approximately $10 million for the Trust, plus accrued dividends from July 31, 2021 to but not including the date of delivery, which will be paid by Purchasers.
The Fund's outstanding Preferred Shares are, and the purchased Preferred Shares will be, subject to notice of issuance, listed on the New York Stock Exchange under the symbol "XFLTPRA."
The Trust intends to use the net proceeds from the offering to invest in accordance with its investment objective and policies, to pay down outstanding borrowings under its credit facility and/or for general working capital purposes. The offering is expected to close on or about September 8, 2021, subject to the satisfaction of customary closing conditions.
The offering of Preferred Shares may be made only by means of a prospectus. Copies of the prospectus supplement relating to the offering and accompanying base prospectus may be obtained from: XA Investments, Attn: Investor Relations, 321 N. Clark, Suite 2430, Chicago, IL 60647, or by emailing info@xainvestments.com (telephone number 888-903-3358).
Investors may also obtain these documents free of charge from the SEC's website at www.sec.gov.
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory services, the firm also provides investment fund structuring and consulting services focused on registered closed-end funds to meet institutional client needs. XAI offers custom product build and consulting services, including development and market research, sales, marketing, fund management and administration. XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. XAI provides individual investors with access to institutional-caliber alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent financial services firm providing M&A, corporate advisory and asset management services to clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser. Octagon is a 25+ year old, $27.6 billion below-investment grade corporate credit investment adviser focused on leveraged loan, high yield bond and structured credit (CLO debt and equity) investments. Through fundamental credit analysis and active portfolio management, Octagon's investment team identifies attractive relative value opportunities across below-investment grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology encourage and rely upon dynamic internal communication to manage portfolio risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach in its effort to generate attractive risk-adjusted returns for its investors. For more information, please visit www.octagoncredit.com.
The Trust, XAI and Octagon do not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. The prospectus supplement, dated September 8, 2021, and accompanying prospectus, dated February 2, 2021, each of which has been filed with the SEC, contain a description of these matters and other important information about the Trust and should be read carefully before investing.
The information in the preliminary prospectus supplement, the accompanying prospectus and this press release is not complete and may be changed. This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
This press release contains certain statements that may include "forward-looking statements." Forward-looking statements can be identified by the words "may," "will," "intend," "expect," "estimate," "continue," "plan," "anticipate," and similar terms and the negatives of such terms. By their nature, all forward-looking statements involve risks and uncertainties, and actual results could differ materially from those contemplated by the forward-looking statements. Many factors that could materially affect the Trust's actual results are the performance of the portfolio of securities held by the Trust, the conditions in the U.S. and international financial and other markets, the price at which Preferred Shares trade in the public markets and other factors discussed in the Trust's prospectus supplement and accompanying base prospectus and to be discussed in the Trust's periodic filings with the SEC.
Although the Trust believes that the expectations expressed in such forward-looking statements are reasonable, actual results could differ materially from those expressed or implied in such forward-looking statements. The Trust's future financial condition and results of operations, as well as any forward-looking statements, are subject to change and are subject to inherent risks and uncertainties. You are cautioned not to place undue reliance on these forward-looking statements, which are made as of the date of this press release. Except for the Trust's ongoing obligations under the federal securities laws, the Trust does not intend, and the Trust undertakes no obligation, to update any forward-looking statement.
Company Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 1-888-903-3358
Email: info@xainvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Common Shares Distribution of $0.073 per Share
September 1, 2021, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's common shares (NYSE: XFLT), payable on October 1, 2021 to common shareholders of record as of September 15, 2021, as noted below. The amount of the distribution represents no change from the previous month's distribution amount.
The following dates apply to the declaration:
Ex-Dividend Date September 14, 2021
Record Date September 15, 2021
Payable Date October 1, 2021
Amount $0.073 per common share
Change from Previous Month: No change
Common share distributions may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2021 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The Trust's net investment income and capital gain can vary significantly over time; however, the Trust seeks to maintain more stable common share monthly distributions over time. The Trust's investments in CLOs are subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States ("U.S. GAAP"), and, as a result, there may be significant differences between the Trust's GAAP income and its taxable income. The Trust's final taxable income for the current fiscal year will not be known until the Trust's tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute to common shareholders by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Trust's fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The common share distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder's tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder's potential gain, or reduce the common shareholder's potential loss, on any subsequent sale or other disposition of common shares.
The distribution shall be paid on the Payment Date unless the payment of such distribution is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law, to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern, or to comply with the applicable terms or financial covenants of the Trust's senior securities.
Future common share distributions will be made if and when declared by the Trust's Board of Trustees, based on a consideration of number of factors, including the Trust's continued compliance with terms and financial covenants of its senior securities, the Trust's net investment income, financial performance and available cash. There can be no assurance that the amount or timing of common share distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of common share distributions in the future.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT," and the Trust's 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol "XFLTPRA."
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based
firm founded by XMS Capital
Partners in April, 2016. In addition to investment advisory services, the firm also provides
investment fund structuring
and consulting services focused on registered closed-end funds to meet institutional client
needs. XAI offers custom
product build and consulting services, including development and market research, sales,
marketing, fund management and
administration. XAI believes that the investing public can benefit from new vehicles to
access a broad range of
alternative investment strategies and managers. XAI provides individual investors with
access to institutional-caliber
alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services
firm providing M&A,
corporate advisory and asset management services to clients. It has offices in Chicago,
Boston and London. For more
information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser.
Octagon is a 25+ year old,
$28.4B below-investment grade corporate credit investment adviser focused on leveraged loan,
high yield bond and
structured credit (CLO debt and equity) investments. Through fundamental credit analysis and
active portfolio
management, Octagon's investment team identifies attractive relative value opportunities
across below-investment grade
asset classes, sectors and issuers. Octagon's investment philosophy and methodology
encourage and rely upon dynamic
internal communication to manage portfolio risk. Over its history, the firm has applied a
disciplined, repeatable and
scalable approach in its effort to generate attractive risk-adjusted returns for its
investors. For more information,
please visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Will Host Q2 2021 Quarterly Webinar on August 17, 2021
August 12, 2021, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") today announced that it plans to host the Trust's Quarterly Webinar on August 17, 2021 at 11:00 am (Eastern Time). The Trust will discuss the three-month period ending June 30, 2021. Robert Chenoweth, Vice President of Internal Sales at XA Investments ("XAI") will moderate the Q&A style webinar with Kimberly Flynn, Managing Director at XAI, and Gretchen Lam, Senior Portfolio Manager at Octagon Credit Investors.
All interested parties are welcome to attend.
TO JOIN VIA WEB: Please go to the Knowledge Bank section of www.xainvestments.com or click here to find the online registration link.
TO USE YOUR TELEPHONE: After joining via web, if you prefer to use your phone for audio, you must select "Use Telephone" and call in using the numbers below.
United States: +1 (562) 247-8422
Access Code: 812-910-890
Audio PIN: Shown after joining the webinar
REPLAY: A replay of the webinar will be available in the Knowledge Bank section of www.xainvestments.com or through the same registration link previously used.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT," and the Trust's 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol "XFLTPRA."
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based
firm founded by XMS
Capital Partners in April, 2016. In addition to investment advisory services, the firm also
provides investment fund
structuring and consulting services focused on registered closed-end funds to meet
institutional client needs. XAI
offers custom
product build and consulting services, including development and market research, sales,
marketing, fund management
and administration. XAI believes that the investing public can benefit from new vehicles to
access a broad range of
alternative investment strategies and managers. XAI provides individual investors with
access to
institutional-caliber alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services
firm providing M&A,
corporate advisory and asset management services to clients. It has offices in Chicago,
Boston and London. For more
information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser.
Octagon is a 25+ year old,
$27.6B below-investment grade corporate credit investment adviser focused on leveraged loan,
high yield bond and
structured credit (CLO debt and equity) investments. Through fundamental credit analysis and
active portfolio
management, Octagon's investment team identifies attractive relative value opportunities
across below-investment
grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology
encourage and rely upon
dynamic
internal communication to manage portfolio risk. Over its history, the firm has applied a
disciplined, repeatable
and scalable approach in its effort to generate attractive risk-adjusted returns for its
investors. For more
information, please visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Common Shares Distribution of $0.073 per Share
August 2, 2021, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the
"Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's
common shares (NYSE: XFLT), payable on September 1, 2021 to common shareholders of record as
of August 17, 2021, as noted below. The amount of the distribution represents no change from
the previous month's distribution amount.
The following dates apply to the declaration:
Ex-Dividend Date: August 16, 2021
Record Date: August 17, 2021
Payable Date: September 1, 2021
Amount: $0.073 per common share
Change from Previous Month: No change
Common share distributions may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2021 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The Trust's net investment income and capital gain can vary significantly over time; however, the Trust seeks to maintain more stable common share monthly distributions over time. The Trust's investments in CLOs are subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States ("U.S. GAAP"), and, as a result, there may be significant differences between the Trust's GAAP income and its taxable income. The Trust's final taxable income for the current fiscal year will not be known until the Trust's tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute to common shareholders by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Trust's fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The common share distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder's tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder's potential gain, or reduce the common shareholder's potential loss, on any subsequent sale or other disposition of common shares.
The distribution shall be paid on the Payment Date unless the payment of such distribution is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law, to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern, or to comply with the applicable terms or financial covenants of the Trust's senior securities.
Future common share distributions will be made if and when declared by the Trust's Board of Trustees, based on a consideration of number of factors, including the Trust's continued compliance with terms and financial covenants of its senior securities, the Trust's net investment income, financial performance and available cash. There can be no assurance that the amount or timing of common share distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of common share distributions in the future.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT," and the Trust's 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol "XFLTPRA."
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's
investment adviser. XAI is a Chicago-based firm founded by XMS Capital Partners in April,
2016. In addition to investment advisory services, the firm also provides investment fund
structuring and consulting services focused on registered closed-end funds to meet
institutional client needs. XAI offers custom product build and consulting services,
including development and market research, sales, marketing, fund management and
administration. XAI believes that the investing public can benefit from new vehicles to
access a broad range of alternative investment strategies and managers. XAI provides
individual investors with access to institutional-caliber alternative managers. For more
information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in
2006, is a global, independent, financial services firm providing M&A, corporate
advisory and asset management services to clients. It has offices in Chicago, Boston and
London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon")
serves as the Trust's investment sub-adviser. Octagon is a 25+ year old, $27.6B
below-investment grade corporate credit investment adviser focused on leveraged loan, high
yield bond and structured credit (CLO debt and equity) investments. Through fundamental
credit analysis and active portfolio management, Octagon's investment team identifies
attractive relative value opportunities across below-investment grade asset classes, sectors
and issuers. Octagon's investment philosophy and methodology encourage and rely upon dynamic
internal communication to manage portfolio risk. Over its history, the firm has applied a
disciplined, repeatable and scalable approach in its effort to generate attractive
risk-adjusted returns for its investors. For more information, please visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
XA Investments Advises Thornburg on the Launch of its First Listed Closed-End Fund
July 30, 2021, Chicago - XA Investments LLC ("XAI"), an alternative investment firm that focuses on the closed-end fund marketplace, has served as a consultant to Thornburg Investment Management ("Thornburg") on the successful completion of the initial public offering of the Thornburg Income Builder Opportunities Trust (NASDAQ: TBLD). The Trust's shares began trading Wednesday, July 28, 2021 on the Nasdaq.
In October 2020, XAI announced the formal launch of its registered closed-end fund structuring and consulting practice. By using the firm's extensive industry network and expertise, XAI clients, including Thornburg, can leverage the strategic closed-end fund marketplace knowledge that has been at the core of XA Investments since its inception in 2016. XAI provides market and portfolio insights, and customized services and advice to asset managers seeking to launch new closed-end funds and other permanent capital vehicles. Driven by an experienced team with a deep investment knowledge and registered fund industry network, XAI has helped clients in engagements ranging from full product builds to sales and marketing projects.
The Thornburg Income Builder Opportunities Trust ("TBLD") raised $580 million, selling 29,000,000 common shares at $20 per share, excluding any exercise of the underwriters' option to purchase additional shares. The lead managers of the underwriting syndicate were UBS Investment Bank, Wells Fargo Securities, RBC Capital Markets, Stifel and Oppenheimer & Co. TBLD seeks to provide high current income and additional total return by investing in a broad range of income-producing securities. Using an active global allocation and a rigorous bottom-up fundamental investment process, TBLD invests in both equity and opportunistic fixed income located in the United States and around the globe.
"We enjoyed partnering with the team at Thornburg and are proud to have worked with them to launch their debut closed-end fund offering. Working together, we have set the foundation for Thornburg to continue its growth in the closed-end fund marketplace," said Kimberly Flynn, Managing Director of XA Investments.
XAI specializes in helping institutional managers seeking to enter the growing retail marketplace with the development of U.S. registered funds including exchange-listed closed-end funds, interval funds, tender offer funds and hybrid funds. XAI seamlessly partners with its consulting clients and works collaboratively with internal project teams to execute on the product launch and capital raise.
"The XA Investments team serves as a complementary extension of our clients' teams and capabilities while also bringing our own deep knowledge and closed-end fund industry experience to bear for them. We are pleased to guide Thornburg through the process to the successful development and launch of their own registered, closed-end fund," said Benjamin McCulloch, General Counsel of XA Investments.
XAI's consulting business is led by Ms. Flynn and Mr. McCulloch and is supported by a cross-functional team of dedicated consultants, closed-end fund experts, professionals and research associates. The combined XAI team brings over 117 years of registered fund market expertise and collectively has been involved in 150+ closed-end fund launches.
To learn more about XAI's consulting capabilities, please visit www.xainvestments.com or contact Robert Chenoweth at (888) 903-3358.
About XA Investments
XAI is a Chicago-based alternative investment management firm founded by XMS Capital Partners in April, 2016. XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. XAI partners with established asset managers with proven capabilities in traditional investment strategies or alternative credit, private debt and select hedge fund strategies. XAI's proprietary listed closed-end fund is the XAI Octagon Floating Rate & Alternative Income Term Trust and has over $313 million in assets under management. The Trust was launched in September, 2017 and its common shares are traded on the New York Stock Exchange under the symbol "XFLT." For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services firm providing M&A, corporate advisory and asset management services to clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
XAI does not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. The preliminary prospectus supplement, dated July 27, 2021, and accompanying prospectus, dated July 28, 2021, each of which has been filed with the SEC, contain a description of these matters and other important information about the Trust and should be read carefully before investing.
The information in the preliminary prospectus supplement, the accompanying prospectus and this press release is not complete and may be changed. This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
This press release contains certain statements that may include "forward-looking statements." Forward-looking statements can be identified by the words "may," "will," "intend," "expect," "estimate," "continue," "plan," "anticipate," and similar terms and the negatives of such terms. By their nature, all forward-looking statements involve risks and uncertainties, and actual results could differ materially from those contemplated by the forward-looking statements. Many factors that could materially affect the Trust's actual results are the performance of the portfolio of securities held by the Trust, the conditions in the U.S. and international financial and other markets, the price at which Common Shares trade in the public markets and other factors discussed in the Trust's prospectus supplement and accompanying base prospectus and to be discussed in the Trust's periodic filings with the SEC.
Although XAI believes that the expectations expressed in such forward-looking statements are reasonable, actual results could differ materially from those expressed or implied in such forward-looking statements. The Trust's future financial condition and results of operations, as well as any forward-looking statements, are subject to change and are subject to inherent risks and uncertainties. You are cautioned not to place undue reliance on these forward-looking statements, which are made as of the date of this press release. Except for ongoing obligations under the federal securities laws, XAI does not intend, and XAI undertakes no obligation, to update any forward-looking statement.
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 1-888-903-3358
Email: KFlynn@xainvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Closes Public Offering of Common Shares
CHICAGO, Illinois – July 23, 2021 – XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") (NYSE: XFLT), a diversified, closed-end management investment company with an investment objective to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle, has closed its previously announced underwritten public offering of 3,565,000 common shares of beneficial interest ("Common Shares") at an offering price of $8.50 per Common Share.
As a result, the Trust received net proceeds from the offering of approximately $29.0 million. The Trust intends to invest the net proceeds from the offering in accordance with its investment objective and policies.
B. Riley Securities, Inc. and Ladenburg Thalmann & Co. Inc. acted as joint book-running managers for the offering. Aegis Capital Corp., InspereX LLC, Maxim Group LLC, Newbridge Securities Corporation and Wedbush Securities Inc. served as co-managers for the offering.
A shelf registration statement on Form N-2 relating to the Common Shares offered is on file with, and has been declared effective by, the Securities and Exchange Commission (the "SEC"). Copies of the prospectus supplement relating to the offering and accompanying base prospectus may be obtained from: B. Riley Securities, Inc., 1300 North 17th Street, Suite 100, Arlington, VA 22209 or by calling (703) 312-9580 or by emailing prospectuses@brileyfin.com; or Ladenburg Thalmann, Attn: Syndicate Department, 640 5th Ave, 4th Floor, New York, NY 10019 or by calling 1-800-573-2541 or by emailing prospectus@ladenburg.com.
Investors may also obtain these documents free of charge from the SEC's website at www.sec.gov.
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory services, the firm also provides investment fund structuring and consulting services focused on registered closed-end funds to meet institutional client needs. XAI offers custom product build and consulting services, including development and market research, sales, marketing, fund management and administration. XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. XAI provides individual investors with access to institutional-caliber alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent financial services firm providing M&A, corporate advisory and asset management services to clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser. Octagon is a 25+ year old, $27.6 billion below-investment grade corporate credit investment adviser focused on leveraged loan, high yield bond and structured credit (CLO debt and equity) investments. Through fundamental credit analysis and active portfolio management, Octagon's investment team identifies attractive relative value opportunities across below-investment grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology encourage and rely upon dynamic internal communication to manage portfolio risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach in its effort to generate attractive risk-adjusted returns for its investors. For more information, please visit www.octagoncredit.com.
The Trust, XAI and Octagon do not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. The preliminary prospectus supplement, dated July 20, 2021, and accompanying prospectus, dated February 2, 2021, each of which has been filed with the SEC, contain a description of these matters and other important information about the Trust and should be read carefully before investing.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
This press release contains certain statements that may include "forward-looking statements." Forward-looking statements can be identified by the words "may," "will," "intend," "expect," "estimate," "continue," "plan," "anticipate," and similar terms and the negatives of such terms. By their nature, all forward-looking statements involve risks and uncertainties, and actual results could differ materially from those contemplated by the forward-looking statements. Many factors that could materially affect the Trust's actual results are the performance of the portfolio of securities held by the Trust, the conditions in the U.S. and international financial and other markets, the price at which Common Shares trade in the public markets and other factors discussed in the Trust's preliminary prospectus supplement and accompanying base prospectus and to be discussed in the Trust's periodic filings with the SEC.
Although the Trust believes that the expectations expressed in such forward-looking statements are reasonable, actual results could differ materially from those expressed or implied in such forward-looking statements. The Trust's future financial condition and results of operations, as well as any forward-looking statements, are subject to change and are subject to inherent risks and uncertainties. You are cautioned not to place undue reliance on these forward-looking statements, which are made as of the date of this press release. Except for the Trust's ongoing obligations under the federal securities laws, the Trust does not intend, and the Trust undertakes no obligation, to update any forward-looking statement.
Company Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 1-888-903-3358
Email: info@xainvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Prices Public Offering of Common Shares
CHICAGO, Illinois – July 21, 2021 – XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") (NYSE: XFLT), a diversified, closed-end management investment company with an investment objective to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle, has priced its previously announced underwritten public offering of common shares of beneficial interest ("Common Shares") pursuant to the Fund's effective shelf registration statement filed with the U.S. Securities and Exchange Commission (the "SEC"). The Trust agreed to sell 3,100,000 Common Shares at a price to the public of $8.50 per Common Share. In addition, the Trust has granted the underwriters a 30-day option to purchase up to 465,000 additional Common Shares to cover over-allotments, if any.
The Trust expects to receive net proceeds (before expenses) from the offering, excluding the exercise of the over-allotment option, if any, of approximately $25.3 million. Assuming the full exercise of the over-allotment option, the net proceeds (before expenses) may reach approximately $29.1 million.
The Trust intends to invest the net proceeds from the offering in accordance with its investment objective and policies. The offering is expected to close on or about July 23, 2021, subject to the satisfaction of customary closing conditions.
B. Riley Securities, Inc. and Ladenburg Thalmann & Co. Inc. are acting as joint book-running managers for the offering. Aegis Capital Corp., InspereX LLC, Maxim Group LLC, Newbridge Securities Corporation and Wedbush Securities Inc. are serving as co-managers for the offering.
The offering of Common Shares may be made only by means of a prospectus. Copies of the prospectus supplement relating to the offering and accompanying base prospectus may be obtained from: B. Riley Securities, Inc., 1300 North 17th Street, Suite 100, Arlington, VA 22209 or by calling (703) 312-9580 or by emailing prospectuses@brileyfin.com; or Ladenburg Thalmann, Attn: Syndicate Department, 640 5th Ave, 4th Floor, New York, NY 10019 or by calling 1-800-573-2541 or by emailing prospectus@ladenburg.com.
Investors may also obtain these documents free of charge from the SEC's website at www.sec.gov.
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory services, the firm also provides investment fund structuring and consulting services focused on registered closed-end funds to meet institutional client needs. XAI offers custom product build and consulting services, including development and market research, sales, marketing, fund management and administration. XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. XAI provides individual investors with access to institutional-caliber alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent financial services firm providing M&A, corporate advisory and asset management services to clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser. Octagon is a 25+ year old, $27.6 billion below-investment grade corporate credit investment adviser focused on leveraged loan, high yield bond and structured credit (CLO debt and equity) investments. Through fundamental credit analysis and active portfolio management, Octagon's investment team identifies attractive relative value opportunities across below-investment grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology encourage and rely upon dynamic internal communication to manage portfolio risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach in its effort to generate attractive risk-adjusted returns for its investors. For more information, please visit www.octagoncredit.com.
The Trust, XAI and Octagon do not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. The preliminary prospectus supplement, dated July 20, 2021, and accompanying prospectus, dated February 2, 2021, each of which has been filed with the SEC, contain a description of these matters and other important information about the Trust and should be read carefully before investing.
The information in the preliminary prospectus supplement, the accompanying prospectus and this press release is not complete and may be changed. This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
This press release contains certain statements that may include "forward-looking statements." Forward-looking statements can be identified by the words "may," "will," "intend," "expect," "estimate," "continue," "plan," "anticipate," and similar terms and the negatives of such terms. By their nature, all forward-looking statements involve risks and uncertainties, and actual results could differ materially from those contemplated by the forward-looking statements. Many factors that could materially affect the Trust's actual results are the performance of the portfolio of securities held by the Trust, the conditions in the U.S. and international financial and other markets, the price at which Common Shares trade in the public markets and other factors discussed in the Trust's preliminary prospectus supplement and accompanying base prospectus and to be discussed in the Trust's periodic filings with the SEC.
Although the Trust believes that the expectations expressed in such forward-looking statements are reasonable, actual results could differ materially from those expressed or implied in such forward-looking statements. The Trust's future financial condition and results of operations, as well as any forward-looking statements, are subject to change and are subject to inherent risks and uncertainties. You are cautioned not to place undue reliance on these forward-looking statements, which are made as of the date of this press release. Except for the Trust's ongoing obligations under the federal securities laws, the Trust does not intend, and the Trust undertakes no obligation, to update any forward-looking statement.
Company Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 1-888-903-3358
Email: info@xainvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Commences Public Offering of Common Shares
CHICAGO, Illinois – July 20, 2021 – XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") (NYSE: XFLT), a diversified, closed-end management investment company with an investment objective to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle, has announced that it has commenced an underwritten public offering of common shares of beneficial interest ("Common Shares") pursuant to the Fund's effective shelf registration statement filed with the U.S. Securities and Exchange Commission (the "SEC"). The Trust also intends to grant the underwriters a 30-day option to purchase up to an additional fifteen percent (15%) of the Common Shares sold to cover over-allotments, if any. The final terms of the offering will depend on market and other conditions at the time of pricing, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.
The Trust intends to invest the net proceeds from the offering in accordance with its investment objective and policies.
B. Riley Securities, Inc. and Ladenburg Thalmann & Co. Inc. are acting as joint book-running managers for the offering. Aegis Capital Corp., InspereX, Maxim Group LLC and Wedbush Securities Inc. are serving as co-managers for the offering.
The offering of Common Shares may be made only by means of a prospectus. Copies of the preliminary prospectus supplement relating to the offering and accompanying base prospectus may be obtained from: B. Riley Securities, Inc., 1300 North 17th Street, Suite 100, Arlington, VA 22209 or by calling (703) 312-9580 or by emailing prospectus@ladenburg.com; or Ladenburg Thalmann, Attn: Syndicate Department, 640 5th Ave, 4th Floor, New York, NY 10019 or by calling 1-800-573-2541 or by emailing prospectus@ladenburg.com.
Investors may also obtain these documents free of charge from the SEC's website at www.sec.gov.
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory services, the firm also provides investment fund structuring and consulting services focused on registered closed-end funds to meet institutional client needs. XAI offers custom product build and consulting services, including development and market research, sales, marketing, fund management and administration. XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. XAI provides individual investors with access to institutional-caliber alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent financial services firm providing M&A, corporate advisory and asset management services to clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser. Octagon is a 25+ year old, $27.6 billion below-investment grade corporate credit investment adviser focused on leveraged loan, high yield bond and structured credit (CLO debt and equity) investments. Through fundamental credit analysis and active portfolio management, Octagon's investment team identifies attractive relative value opportunities across below-investment grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology encourage and rely upon dynamic internal communication to manage portfolio risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach in its effort to generate attractive risk-adjusted returns for its investors. For more information, please visit www.octagoncredit.com.
The Trust, XAI and Octagon do not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. The preliminary prospectus supplement, dated July 20, 2021, and accompanying prospectus, dated February 2, 2021, each of which has been filed with the SEC, contain a description of these matters and other important information about the Trust and should be read carefully before investing.
The information in the preliminary prospectus supplement, the accompanying prospectus and this press release is not complete and may be changed. This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
This press release contains certain statements that may include "forward-looking statements." Forward-looking statements can be identified by the words "may," "will," "intend," "expect," "estimate," "continue," "plan," "anticipate," and similar terms and the negatives of such terms. By their nature, all forward-looking statements involve risks and uncertainties, and actual results could differ materially from those contemplated by the forward-looking statements. Many factors that could materially affect the Trust's actual results are the performance of the portfolio of securities held by the Trust, the conditions in the U.S. and international financial and other markets, the price at which Common Shares trade in the public markets and other factors discussed in the Trust's preliminary prospectus supplement and accompanying base prospectus and to be discussed in the Trust's periodic filings with the SEC.
Although the Trust believes that the expectations expressed in such forward-looking statements are reasonable, actual results could differ materially from those expressed or implied in such forward-looking statements. The Trust's future financial condition and results of operations, as well as any forward-looking statements, are subject to change and are subject to inherent risks and uncertainties. You are cautioned not to place undue reliance on these forward-looking statements, which are made as of the date of this press release. Except for the Trust's ongoing obligations under the federal securities laws, the Trust does not intend, and the Trust undertakes no obligation, to update any forward-looking statement.
Company Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 1-888-903-3358
Email: info@xainvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Common Shares Distribution and Quarterly Preferred Shares Dividend
July 1, 2021, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the
"Trust") has declared its regular monthly distribution of $0.073 per share of the Trust's
common shares (NYSE: XFLT). The Trust also declared preferred dividends for the second
quarter of $0.5597 per share of the Trust's 6.50% Series 2026 Term Preferred Shares (NYSE:
XFLTPRA).
The following dates apply to each declaration:
Share Class | Ex-Dividend Date | Record Date | Payable Date | Amount | Change from Previous Declaration |
---|---|---|---|---|---|
XFLT | July 14, 2021 | July 15, 2021 | August 2, 2021 | $0.073 | No Change |
XFLTPRA | July 14, 2021 | July 15, 2021 | August 2, 2021 | $0.55971 | Initial Dividend |
1Includes partial cash dividends for the period of March 25,
2021 to April 29, 2021. The Trust's 6.50% Series 2026 Term Preferred Shares dividend was
calculated based on the preferred shares Liquidation Preference of $25.00 per share and the
current quarterly distribution rate per share of $0.40625.
Common share distributions may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2021 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The Trust's net investment income and capital gain can vary significantly over time; however, the Trust seeks to maintain more stable common share monthly distributions over time. The Trust's investments in CLOs may be subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the cal-culation of income for financial reporting purposes under accounting principles generally accept-ed in the United States ("U.S. GAAP"), and, as a result, there may be significant differences be-tween the Trust's GAAP income and its taxable income. The Trust's final taxable income for the current fiscal year will not be known until the Trust's tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute to common shareholders by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Trust's fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The common share distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder's tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder's potential gain, or reduce the common shareholder's potential loss, on any subsequent sale or other disposition of common shares.
Preferred shareholders are entitled to receive cumulative cash dividends and distributions on the Trust's 6.50% Series 2026 Term Preferred Shares, when, as and if declared by, or under authority granted by, the Board of Trustees of the Trust out of funds legally available for distribution and in preference to dividends and distributions on common shares. If the Trust is unable to distribute the full dividend amount due in a dividend period on the Trust's 6.50% Series 2026 Term Preferred Shares, the dividends will be distributed on a pro rata basis among the preferred shareholders.
Distributions and dividends shall be paid on the Payable Date listed above unless the payment of such distribution or dividend is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law, to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern or, with regard to the Trust's regular monthly distribution to common shareholders, to comply with the applicable terms or financial covenants of the Trust's senior securities.
Future common share distributions will be made if and when declared by the Trust's Board of Trustees, based on a consideration of number of factors, including the Trust's continued compliance with terms and financial covenants of its senior securities, the Trust's net investment income, financial performance and available cash. There can be no assurance that the amount or timing of common share distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of common share distributions in the future.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT," and the Trust's 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol "XFLTPRA."
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a
Chicago-based firm founded by XMS Capital Partners in April, 2016. In addition to investment
advisory services, the firm also provides investment fund structuring and consulting
services focused on registered closed-end funds to meet institutional client needs. XAI
offers custom product build and consulting services, including development and market
research, sales, marketing, fund management and administration. XAI believes that the
investing public can benefit from new vehicles to access a broad range of alternative
investment strategies and managers. XAI provides individual investors with access to
institutional-caliber alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial
services firm providing M&A, corporate advisory and asset management services to
clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser.
Octagon is a 25+ year old, $27.6B below-investment grade corporate credit investment adviser
focused on leveraged loan, high yield bond and structured credit (CLO debt and equity)
investments. Through fundamental credit analysis and active portfolio management, Octagon's
investment team identifies attractive relative value opportunities across below-investment
grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology
encourage and rely upon dynamic internal communication to manage portfolio risk. Over its
history, the firm has applied a disciplined, repeatable and scalable approach in its effort
to generate attractive risk-adjusted returns for its investors. For more information, please
visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
Kimberly Flynn Explores New Liquidity Mechanisms for Alts Funds in FundFire Alts Article
Tom Stabile, editor for FundFire Alts, writes about the new platform offerings from Nasdaq Fund Secondaries and Beneficient that aim to provide increased liquidity for investors in interval and tender offer funds. His article, titled "Nasdaq, Beneficient Target Qualms over Interval Fund Liquidity," focuses on the two platforms and how they are vying to become the preferred option for alts managers.
Interval and tender offer funds have become increasingly popular in recent years as a way for investors to access alternative investment strategies and their performance premiums. While these fund structures offer investors more liquidity than traditional private funds, XA Investments Managing Director of Alternative Investments Kimberly Flynn notes that some investors and advisors still want greater and more certain liquidity. "Liquidity is on the top of people's lists for what they desire in alts funds," she says. "There's still definitely a hesitance."
Both Nasdaq and Beneficient platforms offer solutions for minimizing cash drag while maximizing liquidity. Nasdaq created its auction fund market, which matches buyers and sellers of non-listed fund shares. Alternatively, Beneficient is offering new liquidity tools which can give an interval fund the ability to convert into a listed fund if it receives a large number of redemption requests.
To read the full article, please click here.
To read XAI's white paper on Auction Funds, please click here.
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Distribution of $0.073 per Share
June 1, 2021, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT"
or the "Trust") has declared its regular monthly distribution of $0.073 per share on the
Trust's common shares, payable on July 1, 2021 to common shareholders of record as of June
15, 2021, as noted below. The amount of the distribution represents no change from the
previous month's distribution amount.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date: June 14, 2021
Record Date: June 15, 2021
Payable Date: July 1, 2021
Amount: $0.073 per common share
Change from Previous Month: No change
Distributions on common shares may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2021 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The Trust's net investment income and capital gain can vary significantly over time, however, the Trust seeks to maintain more stable monthly distributions over time. The Trust's investments in CLOs may be subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States ("U.S. GAAP"), and, as a result, there may be significant differences between the Trust's GAAP income and its taxable income. The Trust's final taxable income for the current fiscal year will not be known until the Trust's tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Trust's fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder's tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder's potential gain, or reduce the common shareholder's potential loss, on any subsequent sale or other disposition of common shares.
The distribution shall be paid on the Payment Date unless the payment of such distribution is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law or the applicable terms or financial covenants of the Trust's senior securities or to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a
Chicago-based firm founded by XMS Capital Partners in April, 2016. In addition to investment
advisory services, the firm also provides investment fund structuring and consulting
services focused on registered closed-end funds to meet institutional client needs. XAI
offers custom product build and consulting services, including development and market
research, sales, marketing, fund management and administration. XAI believes that the
investing public can benefit from new vehicles to access a broad range of alternative
investment strategies and managers. XAI provides individual investors with access to
institutional-caliber alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial
services firm providing M&A, corporate advisory and asset management services to
clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser.
Octagon is a 25+ year old, $26.5B below-investment grade corporate credit investment adviser
focused on leveraged loan, high yield bond and structured credit (CLO debt and equity)
investments. Through fundamental credit analysis and active portfolio management, Octagon's
investment team identifies attractive relative value opportunities across below-investment
grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology
encourage and rely upon dynamic internal communication to manage portfolio risk. Over its
history, the firm has applied a disciplined, repeatable and scalable approach in its effort
to generate attractive risk-adjusted returns for its investors. For more information, please
visit www.octagoncredit.com.
Future distributions will be made if and when declared by the Trust's Board of Trustees, based on a consideration of number of factors, including the Trust's continued compliance with terms and financial covenants of its senior securities, the Trust's net investment income, financial performance and available cash. There can be no assurance that the amount or timing of distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of distributions in the future.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
Kimberly Flynn Discusses London-Listed Fund Opportunities in Latest Episode of AICA's NAVigator podcast
Kimberly Flynn, XA Investments Managing Director of Alternative Investments, is featured in the latest episode of the NAVigator podcast produced by the Active Investment Company Alliance (AICA) and hosted by Chuck Jaffe. In the episode, titled "Firms benefit from using alts, ESG both here and abroad," she discusses how U.S.-based asset managers may benefit from launching London-listed investment trusts, which share many similarities with U.S. listed closed-end funds. Flynn notes that both structures are well-suited to house illiquid investments, with many recent funds featuring ESG-based infrastructure assets.
To listen to the full podcast, please click here.
To read XAI's new white paper on the London-listed fund market, please click here.
XAI Octagon Floating Rate & Alternative Income Term Trust Will Host Q1 2021 Quarterly Webinar on May 27, 2021
May 20, 2021, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") today announced that it plans to host the Trust's Quarterly Webinar on May 27, 2021 at 11:00 am (Eastern Time). The Trust will discuss the three-month period ending March 31, 2021. Robert Chenoweth, Vice President of Internal Sales at XA Investments ("XAI") will moderate the Q&A style webinar with Kimberly Flynn, Managing Director at XAI, and Gretchen Lam, Senior Portfolio Manager at Octagon Credit Investors.
All interested parties are welcome to attend.
TO JOIN VIA WEB: Please go to the Knowledge Bank section of xainvestments.com or click here to find the online registration link.
TO USE YOUR TELEPHONE: After joining via web, if you prefer to use your phone for audio, you must select "Use Telephone" and call in using the numbers below.
United States: +1 (415) 655-0060
Access Code: 654-128-153
Audio PIN: Shown after joining the webinar
REPLAY: A replay of the webinar will be available after the call in the Knowledge Bank section of xainvestments.com or the same registration link previously used.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a
Chicago-based firm founded by XMS Capital Partners in April, 2016. In addition to investment
advisory services, the firm also provides investment fund structuring and consulting
services focused on registered closed-end funds to meet institutional client needs. XAI
offers custom product build and consulting services, including development and market
research, sales, marketing, fund management and administration. XAI believes that the
investing public can benefit from new vehicles to access a broad range of alternative
investment strategies and managers. XAI provides individual investors with access to
institutional-caliber alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial
services firm providing M&A, corporate advisory and asset management services to
clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser.
Octagon is a 25+ year old, $26.5B below-investment grade corporate credit investment adviser
focused on leveraged loan, high yield bond and structured credit (CLO debt and equity)
investments. Through fundamental credit analysis and active portfolio management, Octagon's
investment team identifies attractive relative value opportunities across below-investment
grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology
encourage and rely upon dynamic internal communication to manage portfolio risk. Over its
history, the firm has applied a disciplined, repeatable and scalable approach in its effort
to generate attractive risk-adjusted returns for its investors. For more information, please
visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Distribution of $0.073 per Share
May 3, 2021, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT"
or the "Trust") has declared its regular monthly distribution of $0.073 per share on the
Trust's common shares, payable on June 1, 2021 to common shareholders of record as of May
18, 2021, as noted below. The amount of the distribution represents no change from the
previous month's distribution amount.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date: May 17, 2021
Record Date: May 18, 2021
Payable Date: June 1, 2021
Amount: $0.073 per common share
Change from Previous Month: No change
Distributions on common shares may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2021 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The Trust's net investment income and capital gain can vary significantly over time, however, the Trust seeks to maintain more stable monthly distributions over time. The Trust's investments in CLOs may be subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States ("U.S. GAAP"), and, as a result, there may be significant differences between the Trust's GAAP income and its taxable income. The Trust's final taxable income for the current fiscal year will not be known until the Trust's tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Trust's fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder's tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder's potential gain, or reduce the common shareholder's potential loss, on any subsequent sale or other disposition of common shares.
The distribution shall be paid on the Payment Date unless the payment of such distribution is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law or the applicable terms or financial covenants of the Trust's senior securities or to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a
Chicago-based firm founded by XMS Capital Partners in April, 2016. In addition to investment
advisory services, the firm also provides investment fund structuring and consulting
services focused on registered closed-end funds to meet institutional client needs. XAI
offers custom product build and consulting services, including development and market
research, sales, marketing, fund management and administration. XAI believes that the
investing public can benefit from new vehicles to access a broad range of alternative
investment strategies and managers. XAI provides individual investors with access to
institutional-caliber alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial
services firm providing M&A, corporate advisory and asset management services to
clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser.
Octagon is a 25+ year old, $26.5B below-investment grade corporate credit investment adviser
focused on leveraged loan, high yield bond and structured credit (CLO debt and equity)
investments. Through fundamental credit analysis and active portfolio management, Octagon's
investment team identifies attractive relative value opportunities across below-investment
grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology
encourage and rely upon dynamic internal communication to manage portfolio risk. Over its
history, the firm has applied a disciplined, repeatable and scalable approach in its effort
to generate attractive risk-adjusted returns for its investors. For more information, please
visit www.octagoncredit.com.
Future distributions will be made if and when declared by the Trust's Board of Trustees, based on a consideration of number of factors, including the Trust's continued compliance with terms and financial covenants of its senior securities, the Trust's net investment income, financial performance and available cash. There can be no assurance that the amount or timing of distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of distributions in the future.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Distribution of $0.073 per Share
April 1, 2021, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust
("XFLT" or the "Trust") has declared its regular monthly distribution of $0.073 per share on
the Trust's common shares, payable on May 3, 2021 to common shareholders of record as of
April 15, 2021, as noted below. The amount of the distribution represents no change from the
previous month's distribution amount.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date: April 14, 2021
Record Date: April 15, 2021
Payable Date: May 3, 2021
Amount: $0.073 per common share
Change from Previous Month: No change
Distributions on common shares may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2021 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The Trust's net investment income and capital gain can vary significantly over time, however, the Trust seeks to maintain more stable monthly distributions over time. The Trust's investments in CLOs may be subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States ("U.S. GAAP"), and, as a result, there may be significant differences between the Trust's GAAP income and its taxable income. The Trust's final taxable income for the current fiscal year will not be known until the Trust's tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Trust's fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder's tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder's potential gain, or reduce the common shareholder's potential loss, on any subsequent sale or other disposition of common shares.
The distribution shall be paid on the Payment Date unless the payment of such distribution is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law or the applicable terms or financial covenants of the Trust's senior securities or to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a
Chicago-based firm founded by XMS Capital Partners in April, 2016. In addition to investment
advisory services, the firm also provides investment fund structuring and consulting
services focused on registered closed-end funds to meet institutional client needs. XAI
offers custom product build and consulting services, including development and market
research, sales, marketing, fund management and administration. XAI believes that the
investing public can benefit from new vehicles to access a broad range of alternative
investment strategies and managers. XAI provides individual investors with access to
institutional-caliber alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial
services firm providing M&A, corporate advisory and asset management services to
clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser.
Octagon is a 25+ year old, $26.3B below-investment grade corporate credit investment adviser
focused on leveraged loan, high yield bond and structured credit (CLO debt and equity)
investments. Through fundamental credit analysis and active portfolio management, Octagon's
investment team identifies attractive relative value opportunities across below-investment
grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology
encourage and rely upon dynamic internal communication to manage portfolio risk. Over its
history, the firm has applied a disciplined, repeatable and scalable approach in its effort
to generate attractive risk-adjusted returns for its investors. For more information, please
visit www.octagoncredit.com.
Future distributions will be made if and when declared by the Trust's Board of Trustees, based on a consideration of number of factors, including the Trust's continued compliance with terms and financial covenants of its senior securities, the Trust's net investment income, financial performance and available cash. There can be no assurance that the amount or timing of distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of distributions in the future.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Prices Public Offering of Preferred Shares
CHICAGO, Illinois – March 23, 2021 – XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") (NYSE: XFLT), a diversified, closed-end management investment company with an investment objective to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle, has priced its previously announced underwritten public offering of its newly designated 6.50% Series 2026 Term Preferred Shares (the "Preferred Shares") pursuant to the Trust's effective shelf registration statement filed with the U.S. Securities and Exchange Commission (the "SEC"). The Trust agreed to sell 1,040,000 Preferred Shares at a price to the public of $25.00 per Preferred Share, raising $26 million in gross proceeds. In addition, the Trust has granted the underwriters a 30-day option to purchase up to 156,000 additional Preferred Shares to cover over-allotments, if any. The Company has applied to list the Preferred Shares on the New York Stock Exchange and expects trading to commence thereon within 30 days after March 29, 2021 under the symbol "XFLTPRA."
The Trust expects to receive net proceeds (before expenses) from the offering, excluding the exercise of the over-allotment option, if any, of approximately $25.2 million. Assuming the full exercise of the over-allotment option, the net proceeds (before expenses) may reach approximately $29.0 million.
The Trust intends to use the net proceeds from the offering to invest in accordance with its investment objective and policies, for general working capital purposes and/or to pay down outstanding borrowings under its credit facility. The offering is expected to close on or about March 29, 2021, subject to the satisfaction of customary closing conditions.
Ladenburg Thalmann & Co. Inc., B. Riley Securities, Inc., National Securities Corporation and Incapital LLC are acting as joint book-running managers for the offering.
The offering of Preferred Shares may be made only by means of a prospectus. Copies of the preliminary prospectus supplement relating to the offering and accompanying base prospectus may be obtained from: Ladenburg Thalmann, Attn: Syndicate Department, 640 5th Ave, 4th Floor, New York, NY 10019, or by emailing prospectus@ladenburg.com (telephone number 1-800-573-2541); National Securities Corporation, Attention: Adrian Adderley, 200 Vesey Street, 25th Floor, New York, New York 10281, telephone: (561) 981-1074 or by email at prospectusrequest@nationalsecurities.com; B. Riley Securities, Inc., at 1300 North 17th Street, Suite 100, Arlington, VA 22209 or by calling (703) 312-9580 or by emailing prospectuses@brileyfin.com; or Incapital LLC, Attn: Syndicate Department, 1800 N Military Trail, Suite 400, Boca Raton, FL 33431, or by emailing prospectus_requests@incapital.com (telephone number 1-800-327-1546).
Investors may also obtain these documents free of charge from the SEC's website at www.sec.gov.
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a
Chicago-based firm founded by XMS Capital Partners in April, 2016. In addition to investment
advisory services, the firm also provides investment fund structuring and consulting
services focused on registered closed-end funds to meet institutional client needs. XAI
offers custom product build and consulting services, including development and market
research, sales, marketing, fund management and administration. XAI believes that the
investing public can benefit from new vehicles to access a broad range of alternative
investment strategies and managers. XAI provides individual investors with access to
institutional-caliber alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent financial
services firm providing M&A, corporate advisory and asset management services to
clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser.
Octagon is a 25+ year old, $26.5B below-investment grade corporate credit investment adviser
focused on leveraged loan, high yield bond and structured credit (CLO debt and equity)
investments. Through fundamental credit analysis and active portfolio management, Octagon's
investment team identifies attractive relative value opportunities across below-investment
grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology
encourage and rely upon dynamic internal communication to manage portfolio risk. Over its
history, the firm has applied a disciplined, repeatable and scalable approach in its effort
to generate attractive risk-adjusted returns for its investors. For more information, please
visit www.octagoncredit.com.
The Trust, XAI and Octagon do not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. The preliminary prospectus supplement, dated March 23, 2021, and accompanying prospectus, dated February 2, 2021, each of which has been filed with the SEC, contain a description of these matters and other important information about the Trust and should be read carefully before investing.
The information in the preliminary prospectus supplement, the accompanying prospectus and this press release is not complete and may be changed. This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
This press release contains certain statements that may include "forward-looking statements." Forward-looking statements can be identified by the words "may," "will," "intend," "expect," "estimate," "continue," "plan," "anticipate," and similar terms and the negatives of such terms. By their nature, all forward-looking statements involve risks and uncertainties, and actual results could differ materially from those contemplated by the forward-looking statements. Many factors that could materially affect the Trust's actual results are the performance of the portfolio of securities held by the Trust, the conditions in the U.S. and international financial and other markets, the price at which Preferred Shares trade in the public markets and other factors discussed in the Trust's prospectus supplement and accompanying base prospectus and to be discussed in the Trust's periodic filings with the SEC.
Although the Trust believes that the expectations expressed in such forward-looking statements are reasonable, actual results could differ materially from those expressed or implied in such forward-looking statements. The Trust's future financial condition and results of operations, as well as any forward-looking statements, are subject to change and are subject to inherent risks and uncertainties. You are cautioned not to place undue reliance on these forward-looking statements, which are made as of the date of this press release. Except for the Trust's ongoing obligations under the federal securities laws, the Trust does not intend, and the Trust undertakes no obligation, to update any forward-looking statement.
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 1-888-903-3358
Email: info@xainvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Commences Public Offering of Preferred Shares
CHICAGO, Illinois – March 23, 2021 – XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") (NYSE: XFLT), a diversified, closed-end management investment company with an investment objective to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle, has announced that it has commenced an underwritten public offering of its newly designated Series 2026 Term Preferred Shares (the "Preferred Shares") pursuant to the Fund's effective shelf registration statement filed with the U.S. Securities and Exchange Commission (the "SEC"). The Trust also intends to grant the underwriters a 30-day option to purchase up to an additional fifteen percent (15%) of the Preferred Shares sold to cover over-allotments, if any. The final terms of the offering will depend on market and other conditions at the time of pricing, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.
The Trust intends to use the net proceeds from the offering to invest in accordance with its investment objective and policies, for general working capital purposes and/or to pay down outstanding borrowings under its credit facility.
Ladenburg Thalmann & Co. Inc., B. Riley Securities, Inc., National Securities Corporation and Incapital LLC are acting as joint book-running managers for the offering.
The offering of Preferred Shares may be made only by means of a prospectus. Copies of the preliminary prospectus supplement relating to the offering and accompanying base prospectus may be obtained from: Ladenburg Thalmann, Attn: Syndicate Department, 640 5th Ave, 4th Floor, New York, NY 10019, or by emailing prospectus@ladenburg.com (telephone number 1-800-573-2541); National Securities Corporation, Attention: Adrian Adderley, 200 Vesey Street, 25th Floor, New York, New York 10281, telephone: (561) 981-1074 or by email at prospectusrequest@nationalsecurities.com; B. Riley Securities, Inc., at 1300 North 17th Street, Suite 100, Arlington, VA 22209 or by calling (703) 312-9580 or by emailing prospectuses@brileyfin.com; or Incapital LLC, Attn: Syndicate Department, 1800 N Military Trail, Suite 400, Boca Raton, FL 33431, or by emailing prospectus_requests@incapital.com (telephone number 1-800-327-1546).
Investors may also obtain these documents free of charge from the SEC's website at www.sec.gov.
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a
Chicago-based firm founded by XMS Capital Partners in April, 2016. In addition to investment
advisory services, the firm also provides investment fund structuring and consulting
services focused on registered closed-end funds to meet institutional client needs. XAI
offers custom product build and consulting services, including development and market
research, sales, marketing, fund management and administration. XAI believes that the
investing public can benefit from new vehicles to access a broad range of alternative
investment strategies and managers. XAI provides individual investors with access to
institutional-caliber alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent financial
services firm providing M&A, corporate advisory and asset management services to
clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser.
Octagon is a 25+ year old, $26.5B below-investment grade corporate credit investment adviser
focused on leveraged loan, high yield bond and structured credit (CLO debt and equity)
investments. Through fundamental credit analysis and active portfolio management, Octagon's
investment team identifies attractive relative value opportunities across below-investment
grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology
encourage and rely upon dynamic internal communication to manage portfolio risk. Over its
history, the firm has applied a disciplined, repeatable and scalable approach in its effort
to generate attractive risk-adjusted returns for its investors. For more information, please
visit www.octagoncredit.com.
The Trust, XAI and Octagon do not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. The preliminary prospectus supplement, dated March 23, 2021, and accompanying prospectus, dated February 2, 2021, each of which has been filed with the SEC, contain a description of these matters and other important information about the Trust and should be read carefully before investing.
The information in the preliminary prospectus supplement, the accompanying prospectus and this press release is not complete and may be changed. This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
This press release contains certain statements that may include "forward-looking statements." Forward-looking statements can be identified by the words "may," "will," "intend," "expect," "estimate," "continue," "plan," "anticipate," and similar terms and the negatives of such terms. By their nature, all forward-looking statements involve risks and uncertainties, and actual results could differ materially from those contemplated by the forward-looking statements. Many factors that could materially affect the Trust's actual results are the performance of the portfolio of securities held by the Trust, the conditions in the U.S. and international financial and other markets, the price at which Preferred Shares trade in the public markets and other factors discussed in the Trust's prospectus supplement and accompanying base prospectus and to be discussed in the Trust's periodic filings with the SEC.
Although the Trust believes that the expectations expressed in such forward-looking statements are reasonable, actual results could differ materially from those expressed or implied in such forward-looking statements. The Trust's future financial condition and results of operations, as well as any forward-looking statements, are subject to change and are subject to inherent risks and uncertainties. You are cautioned not to place undue reliance on these forward-looking statements, which are made as of the date of this press release. Except for the Trust's ongoing obligations under the federal securities laws, the Trust does not intend, and the Trust undertakes no obligation, to update any forward-looking statement.
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 1-888-903-3358
Email: info@xainvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Distribution of $0.073 per Share
March 1, 2021, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust
("XFLT" or the "Trust") has declared its regular monthly distribution of $0.073 per share on
the Trust's common shares, payable on April 1, 2021 to common shareholders of record as of
March 16, 2021, as noted below. The amount of the distribution represents no change from the
previous month's distribution amount.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date: March 15, 2021
Record Date: March 16, 2021
Payable Date: April 1, 2021
Amount: $0.073 per common share
Change from Previous Month: No change
Distributions on common shares may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2021 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The Trust's net investment income and capital gain can vary significantly over time, however, the Trust seeks to maintain more stable monthly distributions over time. The Trust's investments in CLOs may be subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States ("U.S. GAAP"), and, as a result, there may be significant differences between the Trust's GAAP income and its taxable income. The Trust's final taxable income for the current fiscal year will not be known until the Trust's tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Trust's fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder's tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder's potential gain, or reduce the common shareholder's potential loss, on any subsequent sale or other disposition of common shares.
The distribution shall be paid on the Payment Date unless the payment of such distribution is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law or the applicable terms or financial covenants of the Trust's senior securities or to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a
Chicago-based firm founded by XMS Capital Partners in April, 2016. In addition to investment
advisory services, the firm also provides investment fund structuring and consulting
services focused on registered closed-end funds to meet institutional client needs. XAI
offers custom product build and consulting services, including development and market
research, sales, marketing, fund management and administration. XAI believes that the
investing public can benefit from new vehicles to access a broad range of alternative
investment strategies and managers. XAI provides individual investors with access to
institutional-caliber alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial
services firm providing M&A, corporate advisory and asset management services to
clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser.
Octagon is a 25+ year old, $26.3B below-investment grade corporate credit investment adviser
focused on leveraged loan, high yield bond and structured credit (CLO debt and equity)
investments. Through fundamental credit analysis and active portfolio management, Octagon's
investment team identifies attractive relative value opportunities across below-investment
grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology
encourage and rely upon dynamic internal communication to manage portfolio risk. Over its
history, the firm has applied a disciplined, repeatable and scalable approach in its effort
to generate attractive risk-adjusted returns for its investors. For more information, please
visit www.octagoncredit.com.
Future distributions will be made if and when declared by the Trust's Board of Trustees, based on a consideration of number of factors, including the Trust's continued compliance with terms and financial covenants of its senior securities, the Trust's net investment income, financial performance and available cash. There can be no assurance that the amount or timing of distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of distributions in the future.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Closes Public Offering of Common Shares
CHICAGO, Illinois – March 1, 2021 – XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") (NYSE: XFLT), a diversified, closed-end management investment company with an investment objective to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle, has closed its previously announced underwritten public offering of 2,900,250 common shares of beneficial interest ("Common Shares") at an offering price of $8.62 per Common Share.
As a result, the Trust received net proceeds from the offering of approximately $23.7 million. The Trust intends to invest the net proceeds from the offering in accordance with its investment objective and policies.
National Securities Corporation, B. Riley Securities, Inc. and Ladenburg Thalmann & Co. Inc. acted as joint book-running managers for the offering. Aegis Capital Corp. and Maxim Group LLC acted as lead managers for the offering. JonesTrading Institutional Services LLC, Newbridge Securities Corporation and Wedbush Securities Inc. acted as co-managers for the offering.
A shelf registration statement on Form N-2 relating to the Common Shares offered is on file with, and has been declared effective by, the Securities and Exchange Commission (the "SEC"). Copies of the prospectus supplement relating to the offering and accompanying base prospectus may be obtained from: National Securities Corporation, Attention: Adrian Adderley, 200 Vesey Street, 25th Floor, New York, New York 10281, telephone: (561) 981-1074 or by email at prospectusrequest@nationalsecurities.com; B. Riley Securities, Inc., at 1300 North 17th Street, Suite 100, Arlington, VA 22209 or by calling (703) 312-9580 or by emailing prospectuses@brileyfin.com; or Ladenburg Thalmann, Attn: Syndicate Department, 640 5th Ave, 4th Floor, New York, NY 10019, or by emailing prospectus@ladenburg.com (telephone number 1-800-573-2541).
Investors may also obtain these documents free of charge from the SEC's website at www.sec.gov.
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a
Chicago-based firm founded by XMS Capital Partners in April, 2016. In addition to investment
advisory services, the firm also provides investment fund structuring and consulting
services focused on registered closed-end funds to meet institutional client needs. XAI
offers custom product build and consulting services, including development and market
research, sales, marketing, fund management and administration. XAI believes that the
investing public can benefit from new vehicles to access a broad range of alternative
investment strategies and managers. XAI provides individual investors with access to
institutional-caliber alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent financial
services firm providing M&A, corporate advisory and asset management services to
clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser.
Octagon is a 25+ year old, $26.3B below-investment grade corporate credit investment adviser
focused on leveraged loan, high yield bond and structured credit (CLO debt and equity)
investments. Through fundamental credit analysis and active portfolio management, Octagon's
investment team identifies attractive relative value opportunities across below-investment
grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology
encourage and rely upon dynamic internal communication to manage portfolio risk. Over its
history, the firm has applied a disciplined, repeatable and scalable approach in its effort
to generate attractive risk-adjusted returns for its investors. For more information, please
visit www.octagoncredit.com.
The Trust, XAI and Octagon do not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. The prospectus supplement, dated February 25, and accompanying prospectus, dated February 2, 2021, each of which has been filed with the SEC, contain a description of these matters and other important information about the Trust and should be read carefully before investing.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
This press release contains certain statements that may include "forward-looking statements." Forward-looking statements can be identified by the words "may," "will," "intend," "expect," "estimate," "continue," "plan," "anticipate," and similar terms and the negatives of such terms. By their nature, all forward-looking statements involve risks and uncertainties, and actual results could differ materially from those contemplated by the forward-looking statements. Many factors that could materially affect the Trust's actual results are the performance of the portfolio of securities held by the Trust, the conditions in the U.S. and international financial and other markets, the price at which Common Shares trade in the public markets and other factors discussed in the Trust's prospectus supplement and accompanying base prospectus and to be discussed in the Trust's periodic filings with the SEC.
Although the Trust believes that the expectations expressed in such forward-looking statements are reasonable, actual results could differ materially from those expressed or implied in such forward-looking statements. The Trust's future financial condition and results of operations, as well as any forward-looking statements, are subject to change and are subject to inherent risks and uncertainties. You are cautioned not to place undue reliance on these forward-looking statements, which are made as of the date of this press release. Except for the Trust's ongoing obligations under the federal securities laws, the Trust does not intend, and the Trust undertakes no obligation, to update any forward-looking statement.
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 1-888-903-3358
Email: info@xainvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Prices Public Offering of Common Shares
CHICAGO, Illinois – February 25, 2021 – XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") (NYSE: XFLT), a diversified, closed-end management investment company with an investment objective to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle, has priced its previously announced underwritten public offering of common shares of beneficial interest ("Common Shares") pursuant to the Fund's effective shelf registration statement filed with the U.S. Securities and Exchange Commission (the "SEC"). The Trust agreed to sell 2,900,250 Common Shares at a price to the public of $8.62 per Common Share. In addition, the Trust has granted the underwriters a 30-day option to purchase up to 435,038 additional Common Shares to cover over-allotments, if any.
The Trust expects to receive net proceeds from the offering, excluding the exercise of the over-allotment option, if any, of approximately $23.9 million. Assuming the full exercise of the over-allotment option, the net proceeds may reach approximately $27.5 million.
The Trust intends to invest the net proceeds from the offering in accordance with its investment objective and policies. The offering is expected to close on or about March 1, 2021, subject to the satisfaction of customary closing conditions.
National Securities Corporation, B. Riley Securities, Inc. and Ladenburg Thalmann & Co. Inc. are acting as joint book-running managers for the offering. Aegis Capital Corp. and Maxim Group LLC are acting as lead managers for the offering. JonesTrading Institutional Services LLC, Newbridge Securities Corporation and Wedbush Securities Inc. are acting as co-managers for the offering.
The offering of Common Shares may be made only by means of a prospectus. Copies of the prospectus supplement relating to the offering and accompanying base prospectus may be obtained from: National Securities Corporation, Attention: Adrian Adderley, 200 Vesey Street, 25th Floor, New York, New York 10281, telephone: (561) 981-1074 or by email at prospectusrequest@nationalsecurities.com; B. Riley Securities, Inc., at 1300 North 17th Street, Suite 100, Arlington, VA 22209 or by calling (703) 312-9580 or by emailing prospectuses@brileyfin.com; or Ladenburg Thalmann, Attn: Syndicate Department, 640 5th Ave, 4th Floor, New York, NY 10019, or by emailing prospectus@ladenburg.com (telephone number 1-800-573-2541).
Investors may also obtain these documents free of charge from the SEC's website at www.sec.gov.
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based
firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory
services, the firm also provides investment fund structuring and consulting services focused
on registered closed-end funds to meet institutional client needs. XAI offers custom product
build and consulting services, including development and market research, sales, marketing,
fund management and administration. XAI believes that the investing public can benefit from
new vehicles to access a broad range of alternative investment strategies and managers. XAI
provides individual investors with access to institutional-caliber alternative managers. For
more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent financial services
firm providing M&A, corporate advisory and asset management services to clients. It has
offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser.
Octagon is a 25+ year old, $26.3B below-investment grade corporate credit investment adviser
focused on leveraged loan, high yield bond and structured credit (CLO debt and equity)
investments. Through fundamental credit analysis and active portfolio management, Octagon's
investment team identifies attractive relative value opportunities across below-investment
grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology
encourage and rely upon dynamic internal communication to manage portfolio risk. Over its
history, the firm has applied a disciplined, repeatable and scalable approach in its effort
to generate attractive risk-adjusted returns for its investors. For more information, please
visit www.octagoncredit.com.
The Trust, XAI and Octagon do not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. The preliminary prospectus supplement, dated February 24, 2021, and accompanying prospectus, dated February 2, 2021, each of which has been filed with the SEC, contain a description of these matters and other important information about the Trust and should be read carefully before investing.
The information in the preliminary prospectus supplement, the accompanying prospectus and this press release is not complete and may be changed. This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
This press release contains certain statements that may include "forward-looking statements." Forward-looking statements can be identified by the words "may," "will," "intend," "expect," "estimate," "continue," "plan," "anticipate," and similar terms and the negatives of such terms. By their nature, all forward-looking statements involve risks and uncertainties, and actual results could differ materially from those contemplated by the forward-looking statements. Many factors that could materially affect the Trust's actual results are the performance of the portfolio of securities held by the Trust, the conditions in the U.S. and international financial and other markets, the price at which Common Shares trade in the public markets and other factors discussed in the Trust's prospectus supplement and accompanying base prospectus and to be discussed in the Trust's periodic filings with the SEC.
Although the Trust believes that the expectations expressed in such forward-looking statements are reasonable, actual results could differ materially from those expressed or implied in such forward-looking statements. The Trust's future financial condition and results of operations, as well as any forward-looking statements, are subject to change and are subject to inherent risks and uncertainties. You are cautioned not to place undue reliance on these forward-looking statements, which are made as of the date of this press release. Except for the Trust's ongoing obligations under the federal securities laws, the Trust does not intend, and the Trust undertakes no obligation, to update any forward-looking statement.
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 1-888-903-3358
Email: info@xainvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Commences Public Offering of Common Shares
CHICAGO, Illinois – February 24, 2021 – XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") (NYSE: XFLT), a diversified, closed-end management investment company with an investment objective to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle, has announced that it has commenced an underwritten public offering of common shares of beneficial interest ("Common Shares") pursuant to the Fund's effective shelf registration statement filed with the U.S. Securities and Exchange Commission (the "SEC"). The Trust also intends to grant the underwriters a 30-day option to purchase up to an additional fifteen percent (15%) of the Common Shares sold to cover over-allotments, if any. The final terms of the offering will depend on market and other conditions at the time of pricing, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.
The Trust intends to invest the net proceeds from the offering in accordance with its investment objective and policies.
National Securities Corporation, B. Riley Securities, Inc. and Ladenburg Thalmann & Co. Inc. are acting as joint book-running managers for the offering.
The offering of Common Shares may be made only by means of a prospectus. Copies of the preliminary prospectus supplement relating to the offering and accompanying base prospectus may be obtained from: National Securities Corporation, Attention: Adrian Adderley, 200 Vesey Street, 25th Floor, New York, New York 10281, telephone: (561) 981-1074 or by email at prospectusrequest@nationalsecurities.com; B. Riley Securities, Inc., at 1300 North 17th Street, Suite 100, Arlington, VA 22209 or by calling (703) 312-9580 or by emailing prospectuses@brileyfin.com; or Ladenburg Thalmann, Attn: Syndicate Department, 640 5th Ave, 4th Floor, New York, NY 10019, or by emailing prospectus@ladenburg.com (telephone number 1-800-573-2541).
Investors may also obtain these documents free of charge from the SEC's website at www.sec.gov.
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based
firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory
services, the firm also provides investment fund structuring and consulting services focused
on registered closed-end funds to meet institutional client needs. XAI offers custom product
build and consulting services, including development and market research, sales, marketing,
fund management and administration. XAI believes that the investing public can benefit from
new vehicles to access a broad range of alternative investment strategies and managers. XAI
provides individual investors with access to institutional-caliber alternative managers. For
more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent financial services
firm providing M&A, corporate advisory and asset management services to clients. It has
offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser.
Octagon is a 25+ year old, $26.3B below-investment grade corporate credit investment adviser
focused on leveraged loan, high yield bond and structured credit (CLO debt and equity)
investments. Through fundamental credit analysis and active portfolio management, Octagon's
investment team identifies attractive relative value opportunities across below-investment
grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology
encourage and rely upon dynamic internal communication to manage portfolio risk. Over its
history, the firm has applied a disciplined, repeatable and scalable approach in its effort
to generate attractive risk-adjusted returns for its investors. For more information, please
visit www.octagoncredit.com.
The Trust, XAI and Octagon do not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. The preliminary prospectus supplement, dated February 24, 2021, and accompanying prospectus, dated February 2, 2021, each of which has been filed with the SEC, contain a description of these matters and other important information about the Trust and should be read carefully before investing.
The information in the preliminary prospectus supplement, the accompanying prospectus and this press release is not complete and may be changed. This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
This press release contains certain statements that may include "forward-looking statements." Forward-looking statements can be identified by the words "may," "will," "intend," "expect," "estimate," "continue," "plan," "anticipate," and similar terms and the negatives of such terms. By their nature, all forward-looking statements involve risks and uncertainties, and actual results could differ materially from those contemplated by the forward-looking statements. Many factors that could materially affect the Trust's actual results are the performance of the portfolio of securities held by the Trust, the conditions in the U.S. and international financial and other markets, the price at which Common Shares trade in the public markets and other factors discussed in the Trust's preliminary prospectus supplement and accompanying base prospectus and to be discussed in the Trust's periodic filings with the SEC.
Although the Trust believes that the expectations expressed in such forward-looking statements are reasonable, actual results could differ materially from those expressed or implied in such forward-looking statements. The Trust's future financial condition and results of operations, as well as any forward-looking statements, are subject to change and are subject to inherent risks and uncertainties. You are cautioned not to place undue reliance on these forward-looking statements, which are made as of the date of this press release. Except for the Trust's ongoing obligations under the federal securities laws, the Trust does not intend, and the Trust undertakes no obligation, to update any forward-looking statement.
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 1-888-903-3358
Email: info@xainvestments.com
www.xainvestments.com
FundFire Alts Article on Broader Adoption of Interval Funds Features Kimberly Flynn
Tom Stabile, the editor for FundFire Alts, writes about the latest phase in the growth of the interval fund market with the increasing adoption of interval funds at the wires. His article, titled "Merrill, UBS, Morgan Pump Up Interval Fund Rosters," explores the delay between the registered investment advisor (RIA) market and the wirehouse firms in making interval funds available to investors.
Kimberly Flynn, XA Investments Managing Director of Alternative Investments, explains that the process of getting an interval fund approved at a wirehouse firm can be lengthy. "The starting point for these interval funds is still in the RIA channel," she says. "Raising that first $100 million to $200 million is critical to getting [wirehouse] consideration. Then it can take 12 months - you have to get in line and be patient."
This delay is largely a result of these firms applying due diligence processes created for other types of funds to interval funds, which may not always be a good fit. "If you have thousands of mutual funds, that kind of screening is appropriate," she says. "But this universe is small, and while yes, there is more risk, you can judge each interval fund on its merits. You need a process that assesses the manager and alts strategy, but why wait for $300 million and a three-year track record?"
Many of the interval funds that are currently available at wirehouse firms are credit-focused, with a few exceptions. Moving forward, Flynn expects that these firms will look to add more variety to their interval fund lineups. "What we're going to see next is the wirehouses start to assess their criteria to expand their platforms," she says. "What's not on there yet are insurance-linked securities or venture capital or other real estate strategies."
![](assets/images/fundfire_article_table.jpg)
To read the full article, please click here.
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Distribution of $0.073 per Share
February 1, 2021, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust
("XFLT" or the "Trust") has declared its regular monthly distribution of $0.073 per share on
the Trust's common shares, payable on March 1, 2021 to common shareholders of record as of
February 17, 2021, as noted below. The amount of the distribution represents no change from
the previous month's distribution amount.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date: February 16, 2021
Record Date: February 17, 2021
Payable Date: March 1, 2021
Amount: $0.073 per common share
Change from Previous Month: No change
Distributions on common shares may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2020 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The Trust's net investment income and capital gain can vary significantly over time, however, the Trust seeks to maintain more stable monthly distributions over time. The Trust's investments in CLOs may be subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States ("U.S. GAAP"), and, as a result, there may be significant differences between the Trust's GAAP income and its taxable income. The Trust's final taxable income for the current fiscal year will not be known until the Trust's tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Trust's fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder's tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder's potential gain, or reduce the common shareholder's potential loss, on any subsequent sale or other disposition of common shares.
The distribution shall be paid on the Payment Date unless the payment of such distribution is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law or the applicable terms or financial covenants of the Trust's senior securities or to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. XAI believes
that the investing public can benefit from new vehicles to access a broad range of
alternative investment strategies and managers. XAI provides individual investors with
access to institutional-caliber alternative managers. It will partner with established asset
managers with proven capabilities in alternative credit, private debt and select hedge fund
strategies.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial
services firm providing M&A, corporate advisory and asset management services to
clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon is a 25+ year old, below-investment grade corporate credit investment adviser
based in New York with over $25 billion in assets under management. Octagon focuses on
leveraged loans, high yield bonds and structured credit. Through fundamental credit analysis
and active portfolio management, Octagon's investment team identifies attractive relative
value opportunities across below-investment grade asset classes, sectors and issuers.
Octagon's investment philosophy and methodology encourage and rely upon dynamic internal
communication to manage portfolio risk. Over its history, the firm has applied a
disciplined, repeatable and scalable approach in its effort to generate attractive
risk-adjusted returns to its investors. For more information, please visit www.octagoncredit.com.
Future distributions will be made if and when declared by the Trust's Board of Trustees, based on a consideration of number of factors, including the Trust's continued compliance with terms and financial covenants of its senior securities, the Trust's net investment income, financial performance and available cash. There can be no assurance that the amount or timing of distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of distributions in the future.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
William Meyers to Advise XA Investments on Closed-End Fund Product Management
CHICAGO, January, 7, 2021 – XA Investments LLC ("XAI"), a Chicago-based alternative investment management and consulting firm, has welcomed William Meyers as a Senior Advisor. After an extensive and successful career at Nuveen Investments, Bill will advise XAI on closed-end fund ("CEF") product management and syndication matters. XAI provides individual investors with access to institutional-caliber alternative managers by partnering with established asset managers with proven capabilities in alternative credit, private debt and select hedge fund strategies.
"We are pleased to have Bill join the XAI team. He brings unique expertise and perspectives in CEF product management and CEF leverage management to our firm. After working together at Nuveen for over 10 years, it is so great to be working with Bill again," said Kimberly Ann Flynn, Managing Director, Alternative Investments.
"My career has been largely focused on the expansion of the CEF marketplace and launch of CEFs in various asset classes. I look forward to exploring new registered product structures with Kim and the XA Investments team. I'm especially looking forward to spending more time with Paul Williams and Bob Kuppenheimer, who also serve as XAI Senior Advisors," added Mr. Meyers.
Prior to joining XA Investments as a Senior Advisor, Mr. Meyers led Nuveen's Closed-End Fund Business Development Group and was responsible for raising public and private capital for Nuveen's closed-end funds. In that role, he led Nuveen's new business development team on the origination and syndication of new closed-end fund IPOs.
Mr. Meyers joined Nuveen in 1992 and was involved with the successful launch of more than 100 CEF IPOs as well as the development of many innovative financing structures utilized as leverage by Nuveen funds.
He graduated with a B.S. in Finance from Marquette University and an M.B.A. from the University of Chicago. He also holds the FINRA Series 7 and 24 securities registrations.
About XA Investments
XAI is a Chicago-based firm founded by XMS Capital Partners in April 2016. XAI believes
that the investing public can benefit from new vehicles to access a broad range of
alternative investment strategies and managers. XAI provides individual investors with
access to institutional-caliber alternative managers. XAI partners with established asset
managers with proven capabilities in alternative credit, private debt and select hedge fund
strategies. XAI's proprietary listed closed-end fund is the XAI Octagon Floating Rate &
Alternative Income Term Trust. The Trust was launched in September 2017 and its common
shares are traded on the New York Stock Exchange under the symbol "XFLT." For more
information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial
services firm providing M&A, corporate advisory and asset management services to
clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Distribution of $0.073 per Share
January 4, 2021, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust
("XFLT" or the "Trust") has declared its regular monthly distribution of $0.073 per share on
the Trust's common shares, payable on February 1, 2021 to common shareholders of record as
of January 15, 2021, as noted below. The amount of the distribution represents no change
from the previous month's distribution amount.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date: January 14, 2021
Record Date: January 15, 2021
Payable Date: February 1, 2021
Amount: $0.073 per common share
Change from Previous Month: No change
Distributions on common shares may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2020 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The Trust's net investment income and capital gain can vary significantly over time, however, the Trust seeks to maintain more stable monthly distributions over time. The Trust's investments in CLOs may be subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States ("U.S. GAAP"), and, as a result, there may be significant differences between the Trust's GAAP income and its taxable income. The Trust's final taxable income for the current fiscal year will not be known until the Trust's tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Trust's fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder's tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder's potential gain, or reduce the common shareholder's potential loss, on any subsequent sale or other disposition of common shares.
The distribution shall be paid on the Payment Date unless the payment of such distribution is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law or the applicable terms or financial covenants of the Trust's senior securities or to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. XAI believes
that the investing public can benefit from new vehicles to access a broad range of
alternative investment strategies and managers. XAI provides individual investors with
access to institutional-caliber alternative managers. It will partner with established asset
managers with proven capabilities in alternative credit, private debt and select hedge fund
strategies.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial
services firm providing M&A, corporate advisory and asset management services to
clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon is a 25+ year old, below-investment grade corporate credit investment adviser
based in New York with over $25 billion in assets under management. Octagon focuses on
leveraged loans, high yield bonds and structured credit. Through fundamental credit analysis
and active portfolio management, Octagon's investment team identifies attractive relative
value opportunities across below-investment grade asset classes, sectors and issuers.
Octagon's investment philosophy and methodology encourage and rely upon dynamic internal
communication to manage portfolio risk. Over its history, the firm has applied a
disciplined, repeatable and scalable approach in its effort to generate attractive
risk-adjusted returns to its investors. For more information, please visit www.octagoncredit.com.
Future distributions will be made if and when declared by the Trust's Board of Trustees, based on a consideration of number of factors, including the Trust's continued compliance with terms and financial covenants of its senior securities, the Trust's net investment income, financial performance and available cash. There can be no assurance that the amount or timing of distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of distributions in the future.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
New FIN News Article on Remote Holiday Celebrations Features XA Investments
In her new article for FIN News, "Investment Management Space Celebrating Holidays With A Virtual Twist," Danielle Correa explores the creative ways in which asset management firms have been celebrating the holidays while working remotely. Many firms have emphasized virtual gatherings, including virtual wine tastings, magic shows, cooking demos, mental health workshops, fitness classes and more, in an effort to maintain shared experiences among employees. Others have focused their efforts on giving back during the holiday season, through donations and food drives.
XA Investments Managing Director of Alternative Investments Kimberly Flynn contributed to the article, sharing with FIN News that XAI is celebrating the holidays with a virtual team party complete with "fun and games, and most importantly, prizes for the winners," in addition to a donation to a nonprofit of each employee's choice. XAI also switched gears from mailed holiday cards to clients to an electronic greeting shared via e-mail and LinkedIn, in order to keep in touch with those who are working remotely.
To read the full article, please click here.
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Distribution of $0.073 per Share
December 1, 2020, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust
("XFLT" or the "Trust") has declared its regular monthly distribution of $0.073 per share on
the Trust's common shares, payable on December 31, 2020 to common shareholders of record as
of December 15, 2020, as noted below. The amount of the distribution represents no change
from the previous month's distribution amount.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date: December 14, 2020
Record Date: December 15, 2020
Payable Date: December 31, 2020
Amount: $0.073 per common share
Change from Previous Month: No change
Distributions on common shares may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2020 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The Trust's net investment income and capital gain can vary significantly over time, however, the Trust seeks to maintain more stable monthly distributions over time. The Trust's investments in CLOs may be subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States ("U.S. GAAP"), and, as a result, there may be significant differences between the Trust's GAAP income and its taxable income. The Trust's final taxable income for the current fiscal year will not be known until the Trust's tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Trust's fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder's tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder's potential gain, or reduce the common shareholder's potential loss, on any subsequent sale or other disposition of common shares.
The distribution shall be paid on the Payment Date unless the payment of such distribution is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law or the applicable terms or financial covenants of the Trust's senior securities or to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. XAI believes
that the investing public can benefit from new vehicles to access a broad range of
alternative investment strategies and managers. XAI provides individual investors with
access to institutional-caliber alternative managers. It will partner with established asset
managers with proven capabilities in alternative credit, private debt and select hedge fund
strategies.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial
services firm providing M&A, corporate advisory and asset management services to
clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon is a 25+ year old, below-investment grade corporate credit investment adviser
based in New York with over $25 billion in assets under management. Octagon focuses on
leveraged loans, high yield bonds and structured credit. Through fundamental credit analysis
and active portfolio management, Octagon's investment team identifies attractive relative
value opportunities across below-investment grade asset classes, sectors and issuers.
Octagon's investment philosophy and methodology encourage and rely upon dynamic internal
communication to manage portfolio risk. Over its history, the firm has applied a
disciplined, repeatable and scalable approach in its effort to generate attractive
risk-adjusted returns to its investors. For more information, please visit www.octagoncredit.com.
Future distributions will be made if and when declared by the Trust's Board of Trustees, based on a consideration of number of factors, including the Trust's continued compliance with terms and financial covenants of its senior securities, the Trust's net investment income, financial performance and available cash. There can be no assurance that the amount or timing of distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of distributions in the future.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Distribution of $0.073 per Share
November 2, 2020, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust
("XFLT" or the "Trust") has declared its regular monthly distribution of $0.073 per share on
the Trust's common shares, payable on December 1, 2020 to common shareholders of record as
of November 17, 2020, as noted below. The amount of the distribution represents no change
from the previous month's distribution amount.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date: November 16, 2020
Record Date: November 17, 2020
Payable Date: December 1, 2020
Amount: $0.073 per common share
Change from Previous Month: No change
Distributions on common shares may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2020 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The Trust's net investment income and capital gain can vary significantly over time, however, the Trust seeks to maintain more stable monthly distributions over time. The Trust's investments in CLOs may be subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States ("U.S. GAAP"), and, as a result, there may be significant differences between the Trust's GAAP income and its taxable income. The Trust's final taxable income for the current fiscal year will not be known until the Trust's tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Trust's fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder's tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder's potential gain, or reduce the common shareholder's potential loss, on any subsequent sale or other disposition of common shares.
The distribution shall be paid on the Payment Date unless the payment of such distribution is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law or the applicable terms or financial covenants of the Trust's senior securities or to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. XAI believes
that the investing public can benefit from new vehicles to access a broad range of
alternative investment strategies and managers. XAI provides individual investors with
access to institutional-caliber alternative managers. It will partner with established asset
managers with proven capabilities in alternative credit, private debt and select hedge fund
strategies.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial
services firm providing M&A, corporate advisory and asset management services to
clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon is a 25+ year old, below-investment grade corporate credit investment adviser
based in New York with over $25 billion in assets under management. Octagon focuses on
leveraged loans, high yield bonds and structured credit. Through fundamental credit analysis
and active portfolio management, Octagon's investment team identifies attractive relative
value opportunities across below-investment grade asset classes, sectors and issuers.
Octagon's investment philosophy and methodology encourage and rely upon dynamic internal
communication to manage portfolio risk. Over its history, the firm has applied a
disciplined, repeatable and scalable approach in its effort to generate attractive
risk-adjusted returns to its investors. For more information, please visit www.octagoncredit.com.
Future distributions will be made if and when declared by the Trust's Board of Trustees, based on a consideration of number of factors, including the Trust's continued compliance with terms and financial covenants of its senior securities, the Trust's net investment income, financial performance and available cash. There can be no assurance that the amount or timing of distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of distributions in the future.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
XA Investments Announces the Formal Launch of its Closed-End Fund Consulting Practice
October 29, 2020, Chicago – XA Investments LLC ("XAI") announced the formal launch of its registered closed-end fund structuring and consulting practice. By using the firm's extensive industry network and expertise, XAI clients can now better leverage the strategic closed-end fund marketplace knowledge that has been at the core of XA Investments since its inception in 2016.
XAI is uniquely positioned to provide market and portfolio insights, and customized advice to asset managers seeking to launch new closed-end funds and other permanent capital vehicles. Driven by an experienced team with a deep investment knowledge and registered fund industry network, XAI has helped clients in engagements ranging from full product builds to sales and marketing projects.
"We are seeing tremendous growth in the closed-end fund marketplace, evidenced by the rise of the interval fund market and the emerging auction fund market. Raising new assets with CEFs is highly specialized. It's important for investment firms in the industry to have the best business, product management and regulatory counsel available to them," said Kimberly Flynn, Managing Director of XA Investments. "At XAI, we have decades of experience and a proven track record of success launching innovative closed-end funds in traditional and alternative asset classes. Our discussions with a number of partner firms helped us decide to expand our business with a variety of product design and marketing services. Our clients have been able to expand their expertise, knowledge, and resources to develop and manage closed-end funds. We pride ourselves on being an extension of our client firms, and stand ready to guide them through the successful development and launch of their own registered, closed-end funds."
XAI's consulting business is led by Kimberly Flynn and Benjamin McCulloch and is supported by a cross-functional team of dedicated professionals, closed-end fund experts and research associates. XAI specializes in helping institutional managers seeking to enter the growing retail marketplace with the development of U.S. registered funds including exchange-listed closed-end funds, interval funds, tender offer funds and hybrid funds.
XAI seamlessly partners with its consulting clients and works collaboratively with internal project teams to execute on the product launch and capital raise. The firm also consults with clients on strategies to support the secondary market trading for existing funds that may be seeking to address activist concerns or to grow capital through post-IPO offerings. XAI began to offer its newly announced consulting services in Q1 of 2020. The XAI service offering is augmented by ongoing asset management and investment manager research activities that help provide clients with a more robust suite of fund development, fund management, sales and marketing services.
To learn more about XAI's consulting capabilities, please visit www.xainvestments.com or contact Robert Chenoweth at (888) 903-3358.
* * *
About XA Investments
XAI is a Chicago-based alternative investment management firm founded by XMS Capital
Partners in April, 2016. XAI believes that the investing public can benefit from new
vehicles to access a broad range of alternative investment strategies and managers. XAI
partners with established asset managers with proven capabilities in traditional investment
strategies or alternative credit, private debt and select hedge fund strategies. XAI's
proprietary listed closed-end fund is the XAI Octagon Floating Rate & Alternative Income
Term Trust. The Trust was launched in September, 2017 and its common shares are traded on
the New York Stock Exchange under the symbol "XFLT." For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services
firm providing M&A, corporate advisory and asset management services to clients. It has
offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Distribution of $0.073 per Share and Announces Change in Non-Fundamental Investment Policy
October 1, 2020, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust
("XFLT" or the "Trust") has declared its regular monthly distribution of $0.073 per share on
the Trust's common shares, payable on November 2, 2020 to common shareholders of record as
of October 15, 2020, as noted below. The amount of the distribution represents a 21.67%
increase from the previous month's distribution amount of $0.060 per share.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date: October 14, 2020
Record Date: October 15, 2020
Payable Date: November 2, 2020
Amount: $0.073 per common share
Change from Previous Month: 21.67% increase
Distributions on common shares may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2020 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The Trust's net investment income and capital gain can vary significantly over time, however, the Trust seeks to maintain more stable monthly distributions over time. The Trust's investments in CLOs may be subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States ("U.S. GAAP"), and, as a result, there may be significant differences between the Trust's GAAP income and its taxable income. The Trust's final taxable income for the current fiscal year will not be known until the Trust's tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Trust's fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder's tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder's potential gain, or reduce the common shareholder's potential loss, on any subsequent sale or other disposition of common shares.
The distribution shall be paid on the Payment Date unless the payment of such distribution is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law or the applicable terms or financial covenants of the Trust's senior securities or to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern.
Announcement of Change in Non-Fundamental Investment Policy
Effective as of November 1, 2020, it will no longer be the Trust's policy to limit its investments in CLO securities, including debt and subordinated (i.e., residual or equity) CLO securities, to 50% of its Managed Assets. Effective as of November 1, 2020, the Trust may invest without limitation in CLO securities, including debt and subordinated (i.e., residual or equity) CLO securities.
The Trust will continue to pursue its investment objective to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust will continue to seek to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. The Trust will continue to invest, under normal market conditions, at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. XAI believes
that the investing public can benefit from new vehicles to access a broad range of
alternative investment strategies and managers. XAI provides individual investors with
access to institutional-caliber alternative managers. It will partner with established asset
managers with proven capabilities in alternative credit, private debt and select hedge fund
strategies.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial
services firm providing M&A, corporate advisory and asset management services to
clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon is a 25+ year old, below-investment grade corporate credit investment adviser
based in New York with over $25 billion in assets under management. Octagon focuses on
leveraged loans, high yield bonds and structured credit. Through fundamental credit analysis
and active portfolio management, Octagon's investment team identifies attractive relative
value opportunities across below-investment grade asset classes, sectors and issuers.
Octagon's investment philosophy and methodology encourage and rely upon dynamic internal
communication to manage portfolio risk. Over its history, the firm has applied a
disciplined, repeatable and scalable approach in its effort to generate attractive
risk-adjusted returns to its investors. For more information, please visit www.octagoncredit.com.
Future distributions will be made if and when declared by the Trust's Board of Trustees, based on a consideration of number of factors, including the Trust's continued compliance with terms and financial covenants of its senior securities, the Trust's net investment income, financial performance and available cash. There can be no assurance that the amount or timing of distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of distributions in the future.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
Kimberly Flynn Comments on Remote Work Policies in FundFire Alts Article
FundFire Alts' Tom Stabile discusses the various pandemic related policies and programs among asset managers in "Can KKR, Peers Make Remote Work + School = Less Stress?" As the number of school districts turning to remote learning increases, employees with school-age children will face significant new demands on their time during the work day. In light of this, asset managers will face a growing need to adopt effective remote work policies and employee assistance programs this fall.
While many firms have created policies and initiatives in response to the health and safety concerns of COVID-19, Kimberly Flynn, XA Investments Managing Director of Alternative Investments, notes that firms may need to shift their focus regarding employee well-being. "They weren't as focused on what does the day look like or what stresses are employees facing," she says. "I've read where they say people now have to behave more professionally on Zoom calls. But we still have kids and live with them. We still have dogs we can't mute."
To read the full article, please click here.
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Distribution of $0.060 per Share
September 1, 2020, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust
("XFLT" or the "Trust") has declared its regular monthly distribution of $0.060 per share on
the Trust's common shares, payable on October 1, 2020 to common shareholders of record as of
September 15, 2020, as noted below. The amount of the distribution represents no change from
the previous month's distribution amount.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date: September 14, 2020
Record Date: September 15, 2020
Payable Date: October 1, 2020
Amount: $0.060 per common share
Change from Previous Month: No change
Distributions on common shares are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2020 calendar year. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The distribution shall be paid on the Payment Date unless the payment of such distribution is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law or the applicable terms or financial covenants of the Trust's senior securities or to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets (as defined in the Prospectus for the Trust) in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective. The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. XAI believes
that the investing public can benefit from new vehicles to access a broad range of
alternative investment strategies and managers. XAI provides individual investors with
access to institutional-caliber alternative managers. It will partner with established asset
managers with proven capabilities in alternative credit, private debt and select hedge fund
strategies.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial
services firm providing M&A, corporate advisory and asset management services to
clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon is a 25+ year old, below-investment grade corporate credit investment adviser
based in New York with over $25 billion in assets under management. Octagon focuses on
leveraged loans, high yield bonds and structured credit. Through fundamental credit analysis
and active portfolio management, Octagon's investment team identifies attractive relative
value opportunities across below-investment grade asset classes, sectors and issuers.
Octagon's investment philosophy and methodology encourage and rely upon dynamic internal
communication to manage portfolio risk. Over its history, the firm has applied a
disciplined, repeatable and scalable approach in its effort to generate attractive
risk-adjusted returns to its investors. For more information, please visit www.octagoncredit.com.
Future distributions will be made if and when declared by the Trust's Board of Trustees, based on a consideration of number of factors, including the Trust's continued compliance with terms and financial covenants of its senior securities, the Trust's net investment income, financial performance and available cash. There can be no assurance that the amount or timing of distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of distributions in the future.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Distribution of $0.060 per Share
August 3, 2020, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust
("XFLT" or the "Trust") has declared its regular monthly distribution of $0.060 per share on
the Trust's common shares, payable on September 1, 2020 to common shareholders of record as
of August 18, 2020, as noted below. The amount of the distribution represents no change from
the previous month's distribution amount.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date: August 17, 2020
Record Date: August 18, 2020
Payable Date: September 1, 2020
Amount: $0.060 per common share
Change from Previous Month: No change
Distributions on common shares are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2020 calendar year. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The distribution shall be paid on the Payment Date unless the payment of such distribution is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law or the applicable terms or financial covenants of the Trust's senior securities or to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets (as defined in the Prospectus for the Trust) in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective. The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. XAI believes
that the investing public can benefit from new vehicles to access a broad range of
alternative investment strategies and managers. XAI provides individual investors with
access to institutional-caliber alternative managers. It will partner with established asset
managers with proven capabilities in alternative credit, private debt and select hedge fund
strategies.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial
services firm providing M&A, corporate advisory and asset management services to
clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon is a 25+ year old, below-investment grade corporate credit investment adviser
based in New York with over $24 billion in assets under management. Octagon focuses on
leveraged loans, high yield bonds and structured credit. Through fundamental credit analysis
and active portfolio management, Octagon's investment team identifies attractive relative
value opportunities across below-investment grade asset classes, sectors and issuers.
Octagon's investment philosophy and methodology encourage and rely upon dynamic internal
communication to manage portfolio risk. Over its history, the firm has applied a
disciplined, repeatable and scalable approach in its effort to generate attractive
risk-adjusted returns to its investors. For more information, please visit www.octagoncredit.com.
Future distributions will be made if and when declared by the Trust's Board of Trustees, based on a consideration of number of factors, including the Trust's continued compliance with terms and financial covenants of its senior securities, the Trust's net investment income, financial performance and available cash. There can be no assurance that the amount or timing of distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of distributions in the future.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
Kimberly Flynn Comments on New KKR Hybrid CEF/REIT in FundFire Alts Article
In "KKR Fires Up Strategy to Hold Real Estate in '40 Act Fund," Tom Stabile explores the unique structure of the KKR Real Estate Select Trust for FundFire Alts. This fund is the second of its kind, after Clarion Partners created the Clarion Partners Real Estate Income Fund (described in more detail here). It combines the structure of a closed-end tender offer fund with the tax status of a REIT by investing at least 80% of its net assets in real estate while still offering investors periodic liquidity.
Kimberly Flynn, XA Investments Managing Director of Alternative Investments, contributes to the article by describing the broader impact this hybrid fund structure may have on the closed-end fund market, particularly with respect to real assets and other illiquid alternatives. "This is a broadening of the types of assets closed-end funds can hold, and it's consistent with the regulators' goal of making [alternative investments] more accessible," she explains. "The closed-end funds that exist today just invest in listed stocks of infrastructure, but that's not what Harvard Management Company buys. That's why there has generally been this disillusionment with alts because [advisors] felt they were given a substitute but not access to the real thing."
Flynn also notes that KKR's large size will be instrumental in achieving the fund's success by allowing it to invest in a diverse portfolio of real estate holdings. "You have to know and have the ability and confidence you can raise the capital quickly and then deploy it quickly," she says. "You can't have two investments that are 100% of the assets of a fund. That's why this [new structure] will be appealing to the larger managers."
To read the full article, please click here.
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Distribution of $0.060 per Share
July 1, 2020, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT"
or the "Trust") has declared its regular monthly distribution of $0.060 per share on the
Trust's common shares, payable on August 3, 2020 to common shareholders of record as of July
15, 2020, as noted below. The amount of the distribution represents no change from the
previous month's distribution amount.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date: July 14, 2020
Record Date: July 15, 2020
Payable Date: August 3, 2020
Amount: $0.060 per common share
Change from Previous Month: No change
Distributions on common shares are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2020 calendar year. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The distribution shall be paid on the Payment Date unless the payment of such distribution is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law or the applicable terms or financial covenants of the Trust's senior securities or to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets (as defined in the Prospectus for the Trust) in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective. The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. XAI believes
that the investing public can benefit from new vehicles to access a broad range of
alternative investment strategies and managers. XAI provides individual investors with
access to institutional-caliber alternative managers. It will partner with established asset
managers with proven capabilities in alternative credit, private debt and select hedge fund
strategies.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial
services firm providing M&A, corporate advisory and asset management services to
clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon is a 25+ year old, below-investment grade corporate credit investment adviser
based in New York with over $24 billion in assets under management. Octagon focuses on
leveraged loans, high yield bonds and structured credit. Through fundamental credit analysis
and active portfolio management, Octagon's investment team identifies attractive relative
value opportunities across below-investment grade asset classes, sectors and issuers.
Octagon's investment philosophy and methodology encourage and rely upon dynamic internal
communication to manage portfolio risk. Over its history, the firm has applied a
disciplined, repeatable and scalable approach in its effort to generate attractive
risk-adjusted returns to its investors. For more information, please visit www.octagoncredit.com.
Future distributions will be made if and when declared by the Trust's Board of Trustees, based on a consideration of number of factors, including the Trust's continued compliance with terms and financial covenants of its senior securities, the Trust's net investment income, financial performance and available cash. There can be no assurance that the amount or timing of distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of distributions in the future.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Distribution of $0.060 per Share
June 1, 2020, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT"
or the "Trust") has declared its regular monthly distribution of $0.060 per share on the
Trust's common shares, payable on July 1, 2020 to common shareholders of record as of June
16, 2020, as noted below. The amount of the distribution represents no change from the
previous month's distribution amount.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date: June 15, 2020
Record Date: June 16, 2020
Payable Date: July 1, 2020
Amount: $0.060 per common share
Change from Previous Month: No change
Distributions on common shares are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2020 calendar year. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The distribution shall be paid on the Payment Date unless the payment of such distribution is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law or the applicable terms or financial covenants of the Trust's senior securities or to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets (as defined in the Prospectus for the Trust) in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective. The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. XAI believes
that the investing public can benefit from new vehicles to access a broad range of
alternative investment strategies and managers. XAI provides individual investors with
access to institutional-caliber alternative managers. It will partner with established asset
managers with proven capabilities in alternative credit, private debt and select hedge fund
strategies.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial
services firm providing M&A, corporate advisory and asset management services to
clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon is a 25+ year old, below-investment grade corporate credit investment adviser
based in New York with over $24 billion in assets under management. Octagon focuses on
leveraged loans, high yield bonds and structured credit. Through fundamental credit analysis
and active portfolio management, Octagon's investment team identifies attractive relative
value opportunities across below-investment grade asset classes, sectors and issuers.
Octagon's investment philosophy and methodology encourage and rely upon dynamic internal
communication to manage portfolio risk. Over its history, the firm has applied a
disciplined, repeatable and scalable approach in its effort to generate attractive
risk-adjusted returns to its investors. For more information, please visit www.octagoncredit.com.
Future distributions will be made if and when declared by the Trust's Board of Trustees, based on a consideration of number of factors, including the Trust's continued compliance with terms and financial covenants of its senior securities, the Trust's net investment income, financial performance and available cash. There can be no assurance that the amount or timing of distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of distributions in the future.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Distribution of $0.060 per Share
May 1, 2020, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT"
or the "Trust") has declared its regular monthly distribution of $0.060 per share on the
Trust's common shares, payable on June 1, 2020 to common shareholders of record as of May
15, 2020, as noted below. The amount of the distribution represents no change from the
previous month's distribution amount.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date: May 14, 2020
Record Date: May 15, 2020
Payable Date: June 1, 2020
Amount: $0.060 per common share
Change from Previous Month: No change
Distributions on common shares are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2020 calendar year. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The distribution shall be paid on the Payment Date unless the payment of such distribution is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law or the applicable terms or financial covenants of the Trust's senior securities or to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets (as defined in the Prospectus for the Trust) in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective. The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. XAI believes
that the investing public can benefit from new vehicles to access a broad range of
alternative investment strategies and managers. XAI provides individual investors with
access to institutional-caliber alternative managers. It will partner with established asset
managers with proven capabilities in alternative credit, private debt and select hedge fund
strategies.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial
services firm providing M&A, corporate advisory and asset management services to
clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon is a 25+ year old, below-investment grade corporate credit investment adviser
based in New York with over $25 billion in assets under management. Octagon focuses on
leveraged loans, high yield bonds and structured credit. Through fundamental credit analysis
and active portfolio management, Octagon's investment team identifies attractive relative
value opportunities across below-investment grade asset classes, sectors and issuers.
Octagon's investment philosophy and methodology encourage and rely upon dynamic internal
communication to manage portfolio risk. Over its history, the firm has applied a
disciplined, repeatable and scalable approach in its effort to generate attractive
risk-adjusted returns to its investors. For more information, please visit www.octagoncredit.com.
Future distributions will be made if and when declared by the Trust's Board of Trustees, based on a consideration of number of factors, including the Trust's continued compliance with terms and financial covenants of its senior securities, the Trust's net investment income, financial performance and available cash. There can be no assurance that the amount or timing of distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of distributions in the future.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Announces that Annual Meeting of Shareholders Scheduled for May 18, 2020 Will Be a Telephonic Meeting
April 29, 2020, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") (NYSE: XFLT), a diversified, closed-end management investment company with an investment objective to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle, announced today that the 2020 annual meeting of shareholders scheduled for Monday, May 18, 2020, will be held telephonically, due to the public health impact of the coronavirus pandemic (COVID-19), travel guidelines impacting Chicago, Illinois and surrounding areas, and to support the health and well-being of shareholders of the Trust.
Annual Meeting
NOTICE IS HEREBY GIVEN that the annual meeting of shareholders of the Trust to be held on
Monday, May 18, 2020 at 9:00 a.m. Central time (the "Meeting") will be held in a telephonic
format. Shareholders will not be able to attend the Meeting in person.
The Proxy Statement for the Meeting is available at www.proxyvote.com. Except as amended or supplemented by the information contained herein, all information set forth in the Proxy Statement continues to apply and should be considered in voting your shares.
Registration Instructions for the Telephonic Meeting
If you were a record holder of Trust shares as of the Record Date of March 27, 2020 (i.e.,
you held Trust shares in your own name directly with the Trust), you are entitled to notice
of and to vote at the Meeting, or any adjournments, postponements or delays thereof. To
participate in the Meeting, please email the Trust at shareholdermeeting@XAInvestments.com,
provide your full name and address. You will then receive an email containing the conference
call dial-in information and instructions for participating in the Meeting.
If you held your Trust shares in a brokerage account or through a bank or other nominee, in order to participate in and vote during the Meeting, you must first request and obtain a "legal proxy" from your broker, bank or other nominee reflecting the Trust's name, the number of Trust shares you held, as well as your name and email address. To participate in the Meeting, please forward an email from your intermediary containing the legal proxy or attach an image of the legal proxy and email it to the Trust at shareholdermeeting@XAInvestments.com. You will then receive an email containing the conference call dial-in information and instructions for participating in the Meeting.
Requests for registration must be received by the Trust no later than 5:00 p.m. Eastern Time on May 13, 2020. Please contact the Trust at 888-903-3358 with any questions regarding accessing the Meeting.
Whether or not you plan to participate in the Meeting, we urge you to complete your proxy card, date and sign it and return it promptly, or record your voting instructions by telephone or via the internet, as described in the proxy materials, no matter how large or small your holdings may be. If you submit a properly executed proxy but do not mark how you wish your shares to be voted, your shares will be voted "FOR" each proposal, as applicable. The proxy card included with the previously distributed proxy materials will not be updated to reflect the change to a telephonic meeting and may continue to be used to vote your shares in connection with the Meeting. If your shares are held through a broker, you must provide voting instructions to your broker about how to vote your shares in order for your broker to vote your shares as you instruct at the Meeting.
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based
firm founded by XMS Capital Partners in April, 2016. XAI believes that the investing public
can benefit from new vehicles to access a broad range of alternative investment strategies
and managers. XAI provides individual investors with access to institutional-caliber
alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent financial services
firm providing M&A, corporate advisory and asset management services to clients. It has
offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser.
Octagon is a 25-plus year old, below investment grade corporate credit investment adviser
based in New York with over $25 billion in assets under management. Octagon focuses on
leveraged loans, high yield bonds and structured credit. Through fundamental credit analysis
and active portfolio management, Octagon's investment team identifies attractive relative
value opportunities across below-investment grade asset classes, sectors and issuers.
Octagon's investment philosophy and methodology encourage and rely upon dynamic internal
communication to capitalize on actionable investment opportunities and manage portfolio
risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach
in its effort to generate attractive risk-adjusted returns to its investors. For more
information, please visit www.octagoncredit.com.
The Trust, XAI and Octagon do not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. There is no assurance that a closed-end fund will achieve its investment objective. Common shares are bought on the secondary market and may trade at a discount or premium to NAV. Regular brokerage commissions apply. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
This press release contains certain statements that may include "forward-looking statements." Forward-looking statements can be identified by the words "may," "will," "intend," "expect," "estimate," "continue," "plan," "anticipate," and similar terms and the negatives of such terms. By their nature, all forward-looking statements involve risks and uncertainties, and actual results could differ materially from those contemplated by the forward-looking statements. Many factors that could materially affect the Trust's actual results are the performance of the portfolio of securities held by the Trust, the conditions in the U.S. and international financial and other markets, the price at which Common Shares trade in the public markets and other factors discussed in the Trust's prospectus supplement and accompanying base prospectus and to be discussed in the Trust's periodic filings with the SEC.
Although the Trust and XAI believe that the expectations expressed in such forward-looking statements are reasonable, actual results could differ materially from those expressed or implied in such forward-looking statements. The Trust's future financial condition and results of operations, as well as any forward-looking statements, are subject to change and are subject to inherent risks and uncertainties. You are cautioned not to place undue reliance on these forward-looking statements, which are made as of the date of this press release. Except for the Trust's ongoing obligations under the federal securities laws, the Trust does not intend, and the Trust undertakes no obligation, to update any forward-looking statement.
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Distribution of $0.060 per Share
April 1, 2020, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust
("XFLT" or the "Trust") has declared its regular monthly distribution of $0.060 per share on
the Trust's common shares, payable on May 1, 2020 to common shareholders of record as of
April 15, 2020, as noted below. The amount of the distribution represents a 17.8% decrease
from the previous month's distribution of $0.073 per share.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date: April 14, 2020
Record Date: April 15, 2020
Payable Date: May 1, 2020
Amount: $0.060 per common share
Change from Previous Month: 17.8% decrease
Distributions on common shares are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2020 calendar year. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The distribution shall be paid on the Payment Date unless the payment of such distribution is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law or the applicable terms or financial covenants of the Trust's senior securities or to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern.
COVID-19 Market Volatility
The Trust has been impacted by recent weeks of market volatility caused by the COVID-19
pandemic. As of March 31, 2020, the net asset value of the Trust's common shares was $4.78
per share, and the last reported sale price for the Trust's common shares on the New York
Stock Exchange was $4.49, representing a discount to net asset value of 6.07%. XA
Investments LLC ("XAI"), Octagon Credit Investors, LLC ("Octagon") and XFLT's Board of
Trustees continue to evaluate present market conditions and the resulting impact to the
Trust. XAI, Octagon, and XFLT's Board of Trustees will seek to act in the best interests of
the Trust and its shareholders, balancing the Trust's objective to seek attractive total
return with an emphasis on income generation across multiple stages of the credit cycle with
the need to prudently manage the Trust's investment portfolio during this time of
unprecedented market volatility.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets (as defined in the Prospectus for the Trust) in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective. The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. XAI believes
that the investing public can benefit from new vehicles to access a broad range of
alternative investment strategies and managers. XAI provides individual investors with
access to institutional-caliber alternative managers. It will partner with established asset
managers with proven capabilities in alternative credit, private debt and select hedge fund
strategies.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial
services firm providing M&A, corporate advisory and asset management services to
clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon is a 25+ year old, below-investment grade corporate credit investment adviser
based in New York with over $25 billion in assets under management. Octagon focuses on
leveraged loans, high yield bonds and structured credit. Through fundamental credit analysis
and active portfolio management, Octagon's investment team identifies attractive relative
value opportunities across below-investment grade asset classes, sectors and issuers.
Octagon's investment philosophy and methodology encourage and rely upon dynamic internal
communication to manage portfolio risk. Over its history, the firm has applied a
disciplined, repeatable and scalable approach in its effort to generate attractive
risk-adjusted returns to its investors. For more information, please visit www.octagoncredit.com.
Future distributions will be made if and when declared by the Trust's Board of Trustees, based on a consideration of number of factors, including the Trust's continued compliance with terms and financial covenants of its senior securities, the Trust's net investment income, financial performance and available cash. There can be no assurance that the amount or timing of distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of distributions in the future.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 312-374-6931
Email: KFlynn@XAInvestments.com
www.xainvestments.com
New Hybrid CEF/REIT Featured in FundFire Alts Article; Kimberly Flynn Describes Market Opportunity.
In the new FundFire Alts article, "Legg's 'Crazy' Real Estate Fund: Manager Mints Unique Hybrid," Tom Stabile describes the different features of the Clarion Partners Real Estate Income Fund. The first of its kind to make it to market, this new fund combines the structure of a tender offer closed-end fund, registered under the Investment Company Act of 1940, with the tax status of a real estate investment trust (REIT).
According to Kimberly Flynn, XA Investments Managing Director of Alternative Investments, private fund managers using a closed-end fund structure provides advisors with direct real estate strategies in a structure familiar to them, while the REIT tax status allows for greater direct real estate investment. "Not all financial advisors who want access to real estate for their clients want to buy a REIT," she says, "In some ways, it's a good next step for this market."
However, this new blended structure might be hard to explain to investors and financial advisors. "It's a Frankenstein, and people will be confused," Flynn says, "Is it a REIT? Well, no, it's a closed-end fund taxed as a REIT. It's a perception issue, at least until it becomes more common."
To read the full article, please click here.
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Distribution of $0.073 per Share and Announces Principal Financial Officer Change
March 2, 2020, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust
("XFLT" or the "Trust") has declared its regular monthly distribution of $0.073 per share on
the Trust's common shares, payable on April 1, 2020 to common shareholders of record as of
March 17, 2020, as noted below. The amount of the distribution represents no change from the
previous month's distribution amount.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date: March 16, 2020
Record Date: March 17, 2020
Payable Date: April 1, 2020
Amount: $0.073 per common share
Change from Previous Month: No Change
Distributions on common shares are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2020 calendar year.
On February 25, 2020, the Board of Trustees of the Trust elected Derek Mullins, Managing Partner at PINE Advisor Solutions, as the Principal Financial Officer and Treasurer of the Trust. Mr. Mullins previously served as the Director of Operations at ArrowMark Partners LLC and the Chief Financial Officer and Treasurer of Meridian Fund, Inc. Mr. Mullins brings over 24 years of operations and finance experience to the Trust. Mr. Mullins earned a B.S. in Finance from the University of Colorado, Boulder and a Master's degree in Finance from the University of Colorado, Denver.
For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets (as defined in the Prospectus for the Trust) in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective. The Trust closed its initial public offering on September 27, 2017. The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XA Investments LLC ("XAI") is a Chicago-based firm founded by XMS Capital Partners in
April, 2016. XAI believes that the investing public can benefit from new vehicles to access
a broad range of alternative investment strategies and managers. XAI provides individual
investors with access to institutional-caliber alternative managers. It will partner with
established asset managers with proven capabilities in alternative credit, private debt and
select hedge fund strategies.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial
services firm providing M&A, corporate advisory and asset management services to
clients. It has offices in Chicago, Boston, London and Dublin. For more information, please
visit www.xmscapital.com.
About Octagon Credit Investors
Octagon is a 20+ year old, below-investment grade corporate credit investment adviser
based in New York with over $25 billion in assets under management. Octagon focuses on
leveraged loans, high yield bonds and structured credit. Through fundamental credit analysis
and active portfolio management, Octagon's investment team identifies attractive relative
value opportunities across below-investment grade asset classes, sectors and issuers.
Octagon's investment philosophy and methodology encourage and rely upon dynamic internal
communication to manage portfolio risk. Over its history, the firm has applied a
disciplined, repeatable and scalable approach in its effort to generate attractive
risk-adjusted returns to its investors. For more information, please visit www.octagoncredit.com.
About PINE Advisor Solutions
Based in Denver, PINE Advisor Solutions is a dynamic outsource solution for funds and
investment managers. PINE provides institutional-quality, outsourced Chief Financial Officer
(CFO), regulatory compliance, fund/advisor launch, and operations support services to
private funds, mutual funds, exempt and registered investment advisers.
The firm's founders have managed the critical non-investment functions in the alternative and registered fund space and have served as Chief Financial Officers, Chief Compliance Officers and ran investment operations for both large and boutique investment firms. For more information, please visit www.pineadvisorsolutions.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Hank Hakewill, Hakewill & Associates
Phone: 847-256-5420 (office); 847-714-6561 (cell)
Email: hankhake@yahoo.com
XAI Octagon Floating Rate & Alternative Income Term Trust Announces Portfolio Management Change
CHICAGO, Illinois – February 14, 2020 – XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") (NYSE: XFLT), a diversified, closed-end management investment company with an investment objective to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle, has announced today portfolio management changes.
Effective February 14, 2020, Gretchen M. Lam, Senior Portfolio Manager at Octagon Credit Investors and a member of the firm's Investment Committee, serves as lead portfolio manager of the Trust. Ms. Lam is supported by a team of Octagon investment professionals in the day-to-day management of the Trust's portfolio, including fellow Investment Committee members Andrew D. Gordon (Chief Executive Officer and Co-Chief Investment Officer), Michael B. Nechamkin (Senior Portfolio Manager and Co-Chief Investment Officer) and Lauren B. Law (Portfolio Manager).
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based
firm founded by XMS Capital Partners in April, 2016. XAI believes that the investing public
can benefit from new vehicles to access a broad range of alternative investment strategies
and managers. XAI provides individual investors with access to institutional-caliber
alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent financial services firm providing M&A, corporate advisory and asset management services to clients. It has offices in Chicago, Boston, London and Dublin. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser.
Octagon is a 25-year old, below investment grade corporate credit investment adviser based
in New York with $25.5 billion in assets under management. Octagon focuses on leveraged
loans, high yield bonds and structured credit investments. Through fundamental credit
analysis and active portfolio management, Octagon's investment team identifies attractive
relative value opportunities across below investment grade asset classes, sectors and
issuers. Octagon's investment philosophy and methodology encourage and rely upon dynamic
internal communication to capitalize on actionable investment opportunities and manage
portfolio risk. Over its history, the firm has applied a disciplined, repeatable and
scalable approach in its effort to generate attractive risk-adjusted returns to its
investors. For more information, please visit www.octagoncredit.com.
The Trust, XAI and Octagon do not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. There is no assurance that a closed-end fund will achieve its investment objective. Common shares are bought on the secondary market and may trade at a discount or premium to NAV. Regular brokerage commissions apply.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
This press release contains certain statements that may include "forward-looking statements." Forward-looking statements can be identified by the words "may," "will," "intend," "expect," "estimate," "continue," "plan," "anticipate," and similar terms and the negatives of such terms. By their nature, all forward-looking statements involve risks and uncertainties, and actual results could differ materially from those contemplated by the forward-looking statements. Many factors that could materially affect the Trust's actual results are the performance of the portfolio of securities held by the Trust, the conditions in the U.S. and international financial and other markets, the price at which Common Shares trade in the public markets and other factors discussed in the Trust's prospectus supplement and accompanying base prospectus and to be discussed in the Trust's periodic filings with the SEC.
Although the Trust and XAI believe that the expectations expressed in such forward-looking statements are reasonable, actual results could differ materially from those expressed or implied in such forward-looking statements. The Trust's future financial condition and results of operations, as well as any forward-looking statements, are subject to change and are subject to inherent risks and uncertainties. You are cautioned not to place undue reliance on these forward-looking statements, which are made as of the date of this press release. Except for the Trust's ongoing obligations under the federal securities laws, the Trust does not intend, and the Trust undertakes no obligation, to update any forward-looking statement.
Company Contact:
Kimberly Flynn
XA Investments
1-888-903-3358
Email: info@xainvestments.com
Media & Investor Relations Contact:
Hank Hakewill
Hakewill & Associates
Phone: (847) 256-5420
Cell: (847) 714-6561
Email: hankhake@yahoo.com
Ben McCulloch Shares Interval Fund Expertise in FundFire Alts Article
Tom Stabile explores the newly proposed SEC rule designed to protect investors of registered funds that utilize derivatives in his new article, "New SEC Rule May Give Interval Funds Big Headaches." While the author explains that mutual funds and ETFs would see the biggest impact of this new rule, it is noted that credit strategy interval funds would also be affected.
The new SEC rule would require firms to establish a derivatives risk management program, which could be costly and time-intensive for fund managers. According to Ben McCulloch, XA Investments Managing Director and General Counsel, the proposed rule would also increase reporting requirements for fund managers.
The proposed rule requirements may not prove unusual for mutual fund platforms that are already accustomed to complying with all of the regulations required for registered funds. However, it could greatly impact the hedge fund and private equity managers using interval funds to provide retail investors access to their institutional strategies, who already face increased oversight when compared to their private funds. Mr. McCulloch says that these managers will "have to drill down and see if it's worth it after all of the costs. As it's written now, there will certainly be the need for additional compliance oversight and infrastructure for interval funds."
To read the full article, please click here.
XAI Octagon Floating Rate & Alternative Income Term Trust Declares Monthly Distribution of $0.073 per Share
February 3, 2020, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust
("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0730 per share
on the Trust's common shares, payable on March 2, 2020 to common shareholders of record as
of February 19, 2020, as noted below. The amount of the distribution represents no change
from the previous month's distribution amount.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date: February 18, 2020
Record Date: February 19, 2020
Payable Date: March 2, 2020
Amount: $0.0730 per common share
Change from Previous Month: No Change
Distributions on common shares are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2020 calendar year. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets (as defined in the Prospectus for the Trust) in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective. The Trust closed its initial public offering on September 27, 2017. The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XAI Investments LLC ("XAI") is a Chicago-based firm founded by XMS Capital Partners in
April, 2016. XAI believes that the investing public can benefit from new vehicles to access
a broad range of alternative investment strategies and managers. XAI provides individual
investors with access to institutional-caliber alternative managers. It will partner with
established asset managers with proven capabilities in alternative credit, private debt and
select hedge fund strategies.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial
services firm providing M&A, corporate advisory and asset management services to
clients. It has offices in Chicago, Boston, London and Dublin. For more information, please
visit www.xmscapital.com.
About Octagon Credit Investors
Octagon is a 20+ year old, below-investment grade corporate credit investment adviser
based in New York with over $24 billion in assets under management. Octagon focuses on
leveraged loans, high yield bonds and structured credit. Through fundamental credit analysis
and active portfolio management, Octagon's investment team identifies attractive relative
value opportunities across below-investment grade asset classes, sectors and issuers.
Octagon's investment philosophy and methodology encourage and rely upon dynamic internal
communication to manage portfolio risk. Over its history, the firm has applied a
disciplined, repeatable and scalable approach in its effort to generate attractive
risk-adjusted returns to its investors. For more information, please visit www.octagoncredit.com.
XAI does not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Hank Hakewill, Hakewill & Associates
Phone: 847-256-5420 (office); 847-714-6561 (cell)
Email: hankhake@yahoo.com
New Interval Funds Launching with Significant Seed Capital
FundFire Alts' Tom Stabile discusses recent trends among interval fund managers in his new article, "Goldman Plans to Seed Two New Interval Funds." Interval funds have been gaining popularity in recent years as a vehicle well-suited to hold illiquid and alternative investment strategies while still providing investors with the ability to redeem shares on a regular basis.
However, this type of fund is relatively expensive to launch and maintain. Because of this, managers have begun seeding new interval funds by contributing existing funds or with capital they have raised through a private offering. According to Kimberly Flynn, XA Investments Managing Director of Alternative Investments, "people don't want to just sit there waiting – they want a head start. Both small and larger managers are looking at it."
Having pre-existing assets in an interval fund can also help expedite the process of clearing platform approval. "It helps the manager clear thresholds more quickly and raise capital more quickly," Flynn explains. "If you start at zero, you can be at zero for a long time."
To read the full article, please click here.
XAI Octagon Floating Rate & Alternative Income Term Trust Declares Monthly Distribution of $0.073 per Share
January 2, 2020, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0730 per share on the Trust's common shares, payable on February 3, 2020 to common shareholders of record as of January 16, 2020, as noted below. The amount of the distribution represents no change from the previous month's distribution amount.
Ex-Dividend Date: January 15, 2020
Record Date: January 16, 2020
Payable Date: February 3, 2020
Amount: $0.073 per common share
Change from Previous Month: No Change
Distributions on common shares are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2020 calendar year. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets (as defined in the Prospectus for the Trust) in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective. The Trust closed its initial public offering on September 27, 2017. The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XAI Investments LLC ("XAI") is a Chicago-based firm founded by XMS Capital Partners in
April, 2016. XAI believes that the investing public can benefit from new vehicles to access
a broad range of alternative investment strategies and managers. XAI provides individual
investors with access to institutional-caliber alternative managers. It will partner with
established asset managers with proven capabilities in alternative credit, private debt and
select hedge fund strategies.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial
services firm providing M&A, corporate advisory and asset management services to
clients. It has offices in Chicago, Boston, London and Dublin. For more information, please
visit www.xmscapital.com.
About Octagon Credit Investors
Octagon is a 20+ year old, below-investment grade corporate credit investment adviser
based in New York with over $24 billion in assets under management. Octagon focuses on
leveraged loans, high yield bonds and structured credit. Through fundamental credit analysis
and active portfolio management, Octagon's investment team identifies attractive relative
value opportunities across below-investment grade asset classes, sectors and issuers.
Octagon's investment philosophy and methodology encourage and rely upon dynamic internal
communication to manage portfolio risk. Over its history, the firm has applied a
disciplined, repeatable and scalable approach in its effort to generate attractive
risk-adjusted returns to its investors. For more information, please visit www.octagoncredit.com.
XAI does not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Hank Hakewill, Hakewill & Associates
Phone: 847-256-5420 (office); 847-714-6561 (cell)
Email: hankhake@yahoo.com
Benjamin D. McCulloch Named as General Counsel at XA Investments
Enhancing XAI's Expertise in Alternatives, Registered and Private Funds
CHICAGO, December 4, 2019 - XA Investments LLC ("XAI") has named Benjamin D. McCulloch as General Counsel. Ben joined XAI in August 2019 as Managing Director, Assistant General Counsel. XAI provides individual investors with access to institutional-caliber alternative managers by partnering with established asset managers with proven capabilities in alternative credit, private debt and select hedge fund strategies.
"Ben is a creative, problem solving asset management executive. He has extensive experience with alternative asset classes, registered and private investment funds. We are pleased that Ben joined the XAI team and are confident that he will make significant contributions to the success of XAI as our General Counsel," said Kimberly Ann Flynn, Managing Director, Alternative Investments.
"I am excited to take on additional responsibility at an entrepreneurial firm like XAI where there is great momentum and energy. I am very pleased to be an integral part of a team that is focused on helping individual investors access institutional-caliber alternative investments," added Mr. McCulloch.
Prior to joining XA Investments, Mr. McCulloch was an attorney in the investment management practice group at Drinker Biddle & Reath LLP, where he counseled clients regarding issues related to the federal securities laws applicable to U.S. registered funds, their investment advisers, their boards of directors/trustees and service providers.
Prior to Drinker Biddle, Mr. McCulloch was an in-house lawyer at First Trust Portfolios LP, where he counseled the new product development, operations and trading, fund accounting and compliance departments on investment advisory and investment company matters. He also served as the chief compliance officer of the complex's Canadian affiliate mutual funds.
Mr. McCulloch received his law degree from the University of Miami and his M.B.A from Dominican University. He earned his B.S. in Marketing from the University of Phoenix while serving active duty in the U.S. Navy. Prior to attending law school, Ben worked in the financial services industry as a financial advisor and later as a fixed income securities trader.
About XA Investments
XA Investments is a Chicago-based firm founded by XMS Capital Partners in April, 2016.
XAI believes that the investing public can benefit from new vehicles to access a broad range
of alternative investment strategies and managers. XAI provides individual investors with
access to institutional-caliber alternative managers. It will partner with established asset
managers with proven capabilities in alternative credit, private debt and select hedge fund
strategies. For further information regarding XAI, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, established in 2006, is a global, independent financial services
firm providing investment banking, asset management and merchant banking services to
clients. It has offices in Chicago, Boston, London and Dublin. For more information about
XMS, please visit www.xmscapital.com.
Media Contact:
Hank Hakewill, Hakewill & Associates
Phone: 847-256-5420 (office); 847-714-6561 (cell)
Email: hankhake@yahoo.com
XAI Octagon Floating Rate & Alternative Income Term Trust Declares Monthly Distribution of $0.073 per Share
December 2, 2019, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust
("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0730 per share
on the Trust's common shares, payable on December 31, 2019 to common shareholders of record
as of December 16, 2019, as noted below. The amount of the distribution represents no change
from the previous month's distribution amount.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date: December 13, 2019
Record Date: December 16, 2019
Payable Date: December 31, 2019
Amount: $0.073 per common share
Change from Previous Month: No Change
Distributions on common shares are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2019 calendar year. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets (as defined in the Prospectus for the Trust) in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective. The Trust closed its initial public offering on September 27, 2017. The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XAI Investments LLC ("XAI") is a Chicago-based firm founded by XMS Capital Partners in
April, 2016. XAI believes that the investing public can benefit from new vehicles to access
a broad range of alternative investment strategies and managers. XAI provides individual
investors with access to institutional-caliber alternative managers. It will partner with
established asset managers with proven capabilities in alternative credit, private debt and
select hedge fund strategies.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial
services firm providing M&A, corporate advisory and asset management services to
clients. It has offices in Chicago, Boston, London and Dublin. For more information, please
visit www.xmscapital.com.
About Octagon Credit Investors
Octagon is a 20+ year old, below-investment grade corporate credit investment adviser
based in New York with over $22 billion in assets under management. Octagon focuses on
leveraged loans, high yield bonds and structured credit. Through fundamental credit analysis
and active portfolio management, Octagon's investment team identifies attractive relative
value opportunities across below-investment grade asset classes, sectors and issuers.
Octagon's investment philosophy and methodology encourage and rely upon dynamic internal
communication to manage portfolio risk. Over its history, the firm has applied a
disciplined, repeatable and scalable approach in its effort to generate attractive
risk-adjusted returns to its investors. For more information, please visit www.octagoncredit.com.
XAI does not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Hank Hakewill, Hakewill & Associates
Phone: 847-256-5420 (office); 847-714-6561 (cell)
Email: hankhake@yahoo.com
XAI Octagon Floating Rate & Alternative Income Term Trust Closes Public Offering of Common Shares
CHICAGO, Illinois - November 19, 2019 - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") (NYSE: XFLT), a diversified, closed-end management investment company with an investment objective to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle, has closed its previously announced underwritten public offering of 960,000 common shares of beneficial interest ("Common Shares") at an offering price of $8.36 per Common Share. In connection with the offering, the underwriters partially exercised the over-allotment option to purchase 138,500 additional Common Shares at the public offering price to cover over-allotments.
As a result, the Trust received net proceeds from the offering, including the aforementioned exercise of the over-allotment option, of approximately $8.42 million. The Trust intends to invest the net proceeds from the offering in accordance with its investment objective and policies.
National Securities Corporation, a wholly owned subsidiary of National Holdings Corporation (NASDAQ: NHLD), acted as lead book-running manager for the offering. Wedbush Securities Inc. and Maxim Group LLC served as co-managers for the offering.
A shelf registration statement on Form N-2 relating to the Common Shares offered is on file with, and has been declared effective by, the Securities and Exchange Commission (the "SEC"). Copies of the prospectus supplement relating to the offering and accompanying base prospectus may be obtained from: National Securities Corporation, Attention: Charles Wanyama, 200 Vesey Street, 25th Floor, New York, New York 10281, telephone: (212) 417-3634 or by email at prospectusrequest@nationalsecurities.com.
Investors may also obtain these documents free of charge from the SEC's website at www.sec.gov.
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based
firm founded by XMS Capital Partners in April, 2016. XAI believes that the investing public
can benefit from new vehicles to access a broad range of alternative investment strategies
and managers. XAI provides individual investors with access to institutional-caliber
alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent financial services
firm providing M&A, corporate advisory and asset management services to clients. It has
offices in Chicago, Boston, London and Dublin. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser.
Octagon is a 25-year old, below investment grade corporate credit investment adviser based
in New York with over $24.8 billion in assets under management. Octagon focuses on leveraged
loans, high yield bonds and structured credit investments. Through fundamental credit
analysis and active portfolio management, Octagon's investment team identifies attractive
relative value opportunities across below investment grade asset classes, sectors and
issuers. Octagon's investment philosophy and methodology encourage and rely upon dynamic
internal communication to capitalize on actionable investment opportunities and manage
portfolio risk. Over its history, the firm has applied a disciplined, repeatable and
scalable approach in its effort to generate attractive risk-adjusted returns to its
investors. For more information, please visit www.octagoncredit.com.
The Trust, XAI and Octagon do not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. The prospectus supplement, dated November 15, 2019, and accompanying prospectus, dated March 12, 2019, each of which has been filed with the SEC, contain a description of these matters and other important information about the Trust and should be read carefully before investing.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
This press release contains certain statements that may include "forward-looking statements." Forward-looking statements can be identified by the words "may," "will," "intend," "expect," "estimate," "continue," "plan," "anticipate," and similar terms and the negatives of such terms. By their nature, all forward-looking statements involve risks and uncertainties, and actual results could differ materially from those contemplated by the forward-looking statements. Many factors that could materially affect the Trust's actual results are the performance of the portfolio of securities held by the Trust, the conditions in the U.S. and international financial and other markets, the price at which Common Shares trade in the public markets and other factors discussed in the Trust's prospectus supplement and accompanying base prospectus and to be discussed in the Trust's periodic filings with the SEC.
Although the Trust and XAI believe that the expectations expressed in such forward-looking statements are reasonable, actual results could differ materially from those expressed or implied in such forward-looking statements. The Trust's future financial condition and results of operations, as well as any forward-looking statements, are subject to change and are subject to inherent risks and uncertainties. You are cautioned not to place undue reliance on these forward-looking statements, which are made as of the date of this press release. Except for the Trust's ongoing obligations under the federal securities laws, the Trust does not intend, and the Trust undertakes no obligation, to update any forward-looking statement.
Company Contact:
Kimberly Flynn
XA Investments
1-888-903-3358
Email: info@xainvestments.com
Media & Investor Relations Contact:
Hank Hakewill
Hakewill & Associates
Phone: (847) 256-5420
Cell: (847) 714-6561
Email: hankhake@yahoo.com
XAI Octagon Floating Rate & Alternative Income Term Trust Prices Public Offering of Common Shares
CHICAGO, Illinois - November 15, 2019 - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") (NYSE: XFLT), a diversified, closed-end management investment company with an investment objective to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle, has priced its previously announced underwritten public offering of common shares of beneficial interest ("Common Shares") pursuant to the Fund's effective shelf registration statement filed with the U.S. Securities and Exchange Commission (the "SEC"). The Trust agreed to sell 960,000 Common Shares at a price to the public of $8.36 per Common Share. In addition, the Trust has granted the underwriters a 45-day option to purchase up to 144,000 additional Common Shares to cover over-allotments, if any.
The Trust expects to receive net proceeds from the offering, excluding the exercise of the over-allotment option, if any, of approximately $7.31 million. Assuming the full exercise of the over-allotment option, the net proceeds may reach approximately $8.46 million.
The Trust intends to invest the net proceeds from the offering in accordance with its investment objective and policies. The offering is expected to close on or about November 19, 2019, subject to the satisfaction of customary closing conditions.
National Securities Corporation, a wholly owned subsidiary of National Holdings Corporation (NASDAQ: NHLD), is acting as lead book-running manager for the offering. Wedbush Securities Inc. and Maxim Group LLC are serving as co-managers for the offering.
The offering of Common Shares may be made only by means of a prospectus. Copies of the prospectus supplement relating to the offering and accompanying base prospectus may be obtained from: National Securities Corporation, Attention: Charles Wanyama, 200 Vesey Street, 25th Floor, New York, New York 10281, telephone: (212) 417-3634 or by email at prospectusrequest@nationalsecurities.com.
Investors may also obtain these documents free of charge from the SEC's website at www.sec.gov.
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based
firm founded by XMS Capital Partners in April, 2016. XAI believes that the investing public
can benefit from new vehicles to access a broad range of alternative investment strategies
and managers. XAI provides individual investors with access to institutional-caliber
alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent financial services
firm providing M&A, corporate advisory and asset management services to clients. It has
offices in Chicago, Boston, London and Dublin. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser.
Octagon is a more than 25-year old, below investment grade corporate credit investment
adviser based in New York with over $24.8 billion in assets under management. Octagon
focuses on leveraged loans, high yield bonds and structured credit investments. Through
fundamental credit analysis and active portfolio management, Octagon's investment team
identifies attractive relative value opportunities across below investment grade asset
classes, sectors and issuers. Octagon's investment philosophy and methodology encourage and
rely upon dynamic internal communication to capitalize on actionable investment
opportunities and manage portfolio risk. Over its history, the firm has applied a
disciplined, repeatable and scalable approach in its effort to generate attractive
risk-adjusted returns to its investors. For more information, please visit www.octagoncredit.com.
The Trust, XAI and Octagon do not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. The prospectus supplement, dated November 15, 2019, and accompanying prospectus, dated March 12, 2019, each of which will be filed with the SEC, contain a description of these matters and other important information about the Trust and should be read carefully before investing.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
This press release contains certain statements that may include "forward-looking statements." Forward-looking statements can be identified by the words "may," "will," "intend," "expect," "estimate," "continue," "plan," "anticipate," and similar terms and the negatives of such terms. By their nature, all forward-looking statements involve risks and uncertainties, and actual results could differ materially from those contemplated by the forward-looking statements. Many factors that could materially affect the Trust's actual results are the performance of the portfolio of securities held by the Trust, the conditions in the U.S. and international financial and other markets, the price at which Common Shares trade in the public markets and other factors discussed in the Trust's prospectus supplement and accompanying base prospectus and to be discussed in the Trust's periodic filings with the SEC.
Although the Trust and XAI believe that the expectations expressed in such forward-looking statements are reasonable, actual results could differ materially from those expressed or implied in such forward-looking statements. The Trust's future financial condition and results of operations, as well as any forward-looking statements, are subject to change and are subject to inherent risks and uncertainties. You are cautioned not to place undue reliance on these forward-looking statements, which are made as of the date of this press release. Except for the Trust's ongoing obligations under the federal securities laws, the Trust does not intend, and the Trust undertakes no obligation, to update any forward-looking statement.
Company Contact:
Kimberly Flynn
XA Investments
1-888-903-3358
Email: info@xainvestments.com
Media & Investor Relations Contact:
Hank Hakewill
Hakewill & Associates
Phone: (847) 256-5420
Cell: (847) 714-6561
Email: hankhake@yahoo.com
XAI Octagon Floating Rate & Alternative Income Term Trust Commences Public Offering of Common Shares
CHICAGO, Illinois - November 14, 2019 - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") (NYSE: XFLT), a diversified, closed-end management investment company with an investment objective to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle, has announced that it has commenced an underwritten public offering of 1,200,000 common shares of beneficial interest ("Common Shares") pursuant to the Fund's effective shelf registration statement filed with the U.S. Securities and Exchange Commission (the "SEC"). The Trust also intends to grant the underwriters a 45-day option to purchase up to 180,000 additional Common Shares to cover over-allotments, if any. The final terms of the offering will depend on market and other conditions at the time of pricing, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.
The Trust intends to invest the net proceeds from the offering in accordance with its investment objective and policies.
National Securities Corporation, a wholly owned subsidiary of National Holdings Corporation (NASDAQ: NHLD), is acting as lead book-running manager for the offering. Wedbush Securities Inc. and Maxim Group LLC are serving as co-managers for the offering.
The offering of Common Shares may be made only by means of a prospectus. Copies of the preliminary prospectus supplement relating to the offering and accompanying base prospectus may be obtained from: National Securities Corporation, Attention: Charles Wanyama, 200 Vesey Street, 25th Floor, New York, New York 10281, telephone: (212) 417-3634 or by email at prospectusrequest@nationalsecurities.com.
Investors may also obtain these documents free of charge from the SEC's website at www.sec.gov.
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based
firm founded by XMS Capital Partners in April, 2016. XAI believes that the investing public
can benefit from new vehicles to access a broad range of alternative investment strategies
and managers. XAI provides individual investors with access to institutional-caliber
alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent financial services
firm providing M&A, corporate advisory and asset management services to clients. It has
offices in Chicago, Boston, London and Dublin. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser.
Octagon is a more than 25-year old, below investment grade corporate credit investment
adviser based in New York with over $24.8 billion in assets under management. Octagon
focuses on leveraged loans, high yield bonds and structured credit investments. Through
fundamental credit analysis and active portfolio management, Octagon's investment team
identifies attractive relative value opportunities across below investment grade asset
classes, sectors and issuers. Octagon's investment philosophy and methodology encourage and
rely upon dynamic internal communication to capitalize on actionable investment
opportunities and manage portfolio risk. Over its history, the firm has applied a
disciplined, repeatable and scalable approach in its effort to generate attractive
risk-adjusted returns to its investors. For more information, please visit www.octagoncredit.com.
The Trust, XAI and Octagon do not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. The preliminary prospectus supplement, dated November 14, 2019, and accompanying prospectus, dated March 12, 2019, each of which has been filed with the SEC, contain a description of these matters and other important information about the Trust and should be read carefully before investing.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
This press release contains certain statements that may include "forward-looking statements." Forward-looking statements can be identified by the words "may," "will," "intend," "expect," "estimate," "continue," "plan," "anticipate," and similar terms and the negatives of such terms. By their nature, all forward-looking statements involve risks and uncertainties, and actual results could differ materially from those contemplated by the forward-looking statements. Many factors that could materially affect the Trust's actual results are the performance of the portfolio of securities held by the Trust, the conditions in the U.S. and international financial and other markets, the price at which Common Shares trade in the public markets and other factors discussed in the Trust's preliminary prospectus supplement and accompanying base prospectus and to be discussed in the Trust's periodic filings with the SEC.
Although the Trust and XAI believe that the expectations expressed in such forward-looking statements are reasonable, actual results could differ materially from those expressed or implied in such forward-looking statements. The Trust's future financial condition and results of operations, as well as any forward-looking statements, are subject to change and are subject to inherent risks and uncertainties. You are cautioned not to place undue reliance on these forward-looking statements, which are made as of the date of this press release. Except for the Trust's ongoing obligations under the federal securities laws, the Trust does not intend, and the Trust undertakes no obligation, to update any forward-looking statement.
Company Contact:
Kimberly Flynn
XA Investments
1-888-903-3358
Email: info@xainvestments.com
Media & Investor Relations Contact:
Hank Hakewill
Hakewill & Associates
Phone: (847) 256-5420
Cell: (847) 714-6561
Email: hankhake@yahoo.com
Kimberly Flynn Featured in Wall Street Journal Article on Private Equity
Simon Constable for the Wall Street Journal reports on the various benefits and potential risks of expanding private equity access to individual investors in his new article, "Private Equity Might Be Going Downscale. Should You Invest?" The SEC recently asked for public comment on the topic, suggesting that the regulatory agency is open to considering allowing individual investors to invest in private equity. In the past, regulators have restricted private equity access to institutional and high net worth investors in order to protect individual investors from certain investment features and risks that they may not be able to understand or afford.
Historically, average returns on private equity have exceeded those of traditional investments by a wide margin. According to Jack Albin, founding partner of Cresset Wealth Advisors LLC, "[private equity] is a pathway to returns and wealth." Many think that individual investors are missing out on a valuable investment opportunity and should be able to access the potential for these higher returns, even if it involves taking on extra risk.
Private equity fund managers may also support expanding access to their funds to individual investors, especially with the recent trend of 401(k)s and individual retirement accounts replacing pension plans, which have historically been large investors in private equity funds. "What the SEC is trying to do is to solve a problem that was created when there was a shift away from defined-benefit pensions. That change shifted the burden of investing to the individual," according to Kimberly Flynn, XA Investments Managing Director of Alternative Investments.
To read the full article, please click here.
XAI Octagon Floating Rate & Alternative Income Term Trust Declares Monthly Distribution of $0.073 per Share
November 1, 2019, Chicago –XAI Octagon Floating Rate & Alternative Income Term Trust
("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0730 per share
on the Trust's common shares, payable on December 2, 2019 to common shareholders of record
as of November 15, 2019, as noted below. The amount of the distribution represents no change
from the previous month's distribution amount.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date: November 14, 2019
Record Date: November 15, 2019
Payable Date: December 2, 2019
Amount: $0.073 per common share
Change from Previous Month: No Change
Distributions on common shares are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2019 calendar year. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets (as defined in the Prospectus for the Trust) in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective. The Trust closed its initial public offering on September 27, 2017. The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XAI Investments LLC ("XAI") is a Chicago-based firm founded by XMS Capital Partners in
April, 2016. XAI believes that the investing public can benefit from new vehicles to access
a broad range of alternative investment strategies and managers. XAI provides individual
investors with access to institutional-caliber alternative managers. It will partner with
established asset managers with proven capabilities in alternative credit, private debt and
select hedge fund strategies.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial
services firm providing M&A, corporate advisory and asset management services to
clients. It has offices in Chicago, Boston, London and Dublin. For more information, please
visit www.xmscapital.com.
About Octagon Credit Investors
Octagon is a 20+ year old, below-investment grade corporate credit investment adviser
based in New York with over $24 billion in assets under management. Octagon focuses on
leveraged loans, high yield bonds and structured credit. Through fundamental credit analysis
and active portfolio management, Octagon's investment team identifies attractive relative
value opportunities across below-investment grade asset classes, sectors and issuers.
Octagon's investment philosophy and methodology encourage and rely upon dynamic internal
communication to manage portfolio risk. Over its history, the firm has applied a
disciplined, repeatable and scalable approach in its effort to generate attractive
risk-adjusted returns to its investors. For more information, please visit www.octagoncredit.com.
XAI does not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Hank Hakewill, Hakewill & Associates
Phone: 847-256-5420 (office); 847-714-6561 (cell)
Email: hankhake@yahoo.com
Financial Advisor Magazine Article Covers XA Investments' Private Equity Event
XA Investments hosted a panel discussion on the topic of access to private equity at the NYSE on October 8th. Gregory Bresiger shares the key takeaways from the event in his new article, titled "Private Equity A Must For Retirement Portfolios, Panel Argues." The discussion featured private equity experts including Clayton Cheek from Artivest, Doug Keller from Pantheon, Chris Shepherdson from CR Capital Group and Joseph Bonvouloir from ALTI Financial. Panelists discussed recent initiatives by the SEC and efforts by notable private equity investment firms to expand access to private equity for individual investors. These initiatives would allow individuals to capture the benefits of investments in private equity, and alternatives in general, which allocations to stocks and bonds alone may not provide.
Kimberly Flynn, XA Investments Managing Director of Alternative Investments, moderated the panel. She argued that individual investors currently allocate too much of their portfolio to traditional, highly liquid investments like stocks and bonds, while investments in private equity may diversify and enhance portfolios. Retirement portfolios are particularly suitable for private equity, panelists argued, because the long investment horizons of retirement accounts align with the less liquid nature and common lockup periods of private equity investments.
Managing Director of CR Capital Group Chris Shepherdson pointed out that "public companies are older and less growth oriented than private companies." He added, "if you are looking to grow your practice over time, then I don't think that you can avoid this asset class."
To read the full article, please click here.
XAI Octagon Floating Rate & Alternative Income Term Trust Declares Monthly Distribution of $0.073 per Share
October 1, 2019, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust
("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0730 per share
on the Trust's common shares, payable on November 1, 2019 to common shareholders of record
as of October 15, 2019, as noted below. The amount of the distribution represents no change
from the previous month's distribution amount.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date: October 14, 2019
Record Date: October 15, 2019
Payable Date: November 1, 2019
Amount: $0.073 per common share
Change from Previous Month: No Change
Distributions on common shares are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2019 calendar year. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets (as defined in the Prospectus for the Trust) in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective. The Trust closed its initial public offering on September 27, 2017. The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XAI Investments LLC ("XAI") is a Chicago-based firm founded by XMS Capital Partners in
April, 2016. XAI believes that the investing public can benefit from new vehicles to access
a broad range of alternative investment strategies and managers. XAI provides individual
investors with access to institutional-caliber alternative managers. It will partner with
established asset managers with proven capabilities in alternative credit, private debt and
select hedge fund strategies.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial
services firm providing M&A, corporate advisory and asset management services to
clients. It has offices in Chicago, Boston, London and Dublin. For more information, please
visit www.xmscapital.com.
About Octagon Credit Investors
Octagon is a 20+ year old, below-investment grade corporate credit investment adviser
based in New York with over $24 billion in assets under management. Octagon focuses on
leveraged loans, high yield bonds and structured credit. Through fundamental credit analysis
and active portfolio management, Octagon's investment team identifies attractive relative
value opportunities across below-investment grade asset classes, sectors and issuers.
Octagon's investment philosophy and methodology encourage and rely upon dynamic internal
communication to manage portfolio risk. Over its history, the firm has applied a
disciplined, repeatable and scalable approach in its effort to generate attractive
risk-adjusted returns to its investors. For more information, please visit www.octagoncredit.com.
XAI does not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Hank Hakewill, Hakewill & Associates
Phone: 847-256-5420 (office); 847-714-6561 (cell)
Email: hankhake@yahoo.com
XAI Octagon Floating Rate & Alternative Income Term Trust Declares Monthly Distribution of $0.073 per Share
September 3, 2019, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust
("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0730 per share
on the Trust's common shares, payable on October 1, 2019 to common shareholders of record as
of September 16, 2019, as noted below. The amount of the distribution represents no change
from the previous month's distribution amount.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date: September 13, 2019
Record Date: September 16, 2019
Payable Date: October 1, 2019
Amount: $0.073 per common share
Change from Previous Month: No Change
Distributions on common shares are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2019 calendar year. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets (as defined in the Prospectus for the Trust) in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective. The Trust closed its initial public offering on September 27, 2017. The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XAI Investments LLC ("XAI") is a Chicago-based firm founded by XMS Capital Partners in
April, 2016. XAI believes that the investing public can benefit from new vehicles to access
a broad range of alternative investment strategies and managers. XAI provides individual
investors with access to institutional-caliber alternative managers. It will partner with
established asset managers with proven capabilities in alternative credit, private debt and
select hedge fund strategies.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial
services firm providing M&A, corporate advisory and asset management services to
clients. It has offices in Chicago, Boston, London and Dublin. For more information, please
visit www.xmscapital.com.
About Octagon Credit Investors
Octagon is a 20+ year old, below-investment grade corporate credit investment adviser
based in New York with over $22 billion in assets under management. Octagon focuses on
leveraged loans, high yield bonds and structured credit. Through fundamental credit analysis
and active portfolio management, Octagon's investment team identifies attractive relative
value opportunities across below-investment grade asset classes, sectors and issuers.
Octagon's investment philosophy and methodology encourage and rely upon dynamic internal
communication to manage portfolio risk. Over its history, the firm has applied a
disciplined, repeatable and scalable approach in its effort to generate attractive
risk-adjusted returns to its investors. For more information, please visit www.octagoncredit.com.
XAI does not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Hank Hakewill, Hakewill & Associates
Phone: 847-256-5420 (office); 847-714-6561 (cell)
Email: hankhake@yahoo.com
XAI Octagon Floating Rate & Alternative Income Term Trust Declares Monthly Distribution of $0.073 per Share
August 1, 2019, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust
("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0730 per share
on the Trust's common shares, payable on September 3, 2019 to common shareholders of record
as of August 15, 2019, as noted below. The amount of the distribution represents no change
from the previous month's distribution amount.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date: August 14, 2019
Record Date: August 15, 2019
Payable Date: September 3, 2019
Amount: $0.073 per common share
Change from Previous Month: No Change
Distributions on common shares are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2019 calendar year. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets (as defined in the Prospectus for the Trust) in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective. The Trust closed its initial public offering on September 27, 2017. The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XAI Investments LLC ("XAI") is a Chicago-based firm founded by XMS Capital Partners in
April, 2016. XAI believes that the investing public can benefit from new vehicles to access
a broad range of alternative investment strategies and managers. XAI provides individual
investors with access to institutional-caliber alternative managers. It will partner with
established asset managers with proven capabilities in alternative credit, private debt and
select hedge fund strategies.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial
services firm providing M&A, corporate advisory and asset management services to
clients. It has offices in Chicago, Boston, London and Dublin. For more information, please
visit www.xmscapital.com.
About Octagon Credit Investors
Octagon is a 20+ year old, below-investment grade corporate credit investment adviser
based in New York with over $22 billion in assets under management. Octagon focuses on
leveraged loans, high yield bonds and structured credit. Through fundamental credit analysis
and active portfolio management, Octagon's investment team identifies attractive relative
value opportunities across below-investment grade asset classes, sectors and issuers.
Octagon's investment philosophy and methodology encourage and rely upon dynamic internal
communication to manage portfolio risk. Over its history, the firm has applied a
disciplined, repeatable and scalable approach in its effort to generate attractive
risk-adjusted returns to its investors. For more information, please visit www.octagoncredit.com.
XAI does not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Hank Hakewill, Hakewill & Associates
Phone: 847-256-5420 (office); 847-714-6561 (cell)
Email: hankhake@yahoo.com
Kimberly Flynn Comments on Timely Investment Strategies in Recent Newsmax Article
In "3 Investment Strategies for the Remainder of 2019," Juliette Fairley describes different investment recommendations that may become compelling as the economy begins to weaken/correct. These three investment strategies include defensive sectors like fixed income, interval funds and listed closed-end funds, and real estate investments exhibiting characteristics that may potentially benefit investors in the near future.
XA Investments Managing Director of Alternative Investments Kimberly Flynn notes the strengths of interval funds during a potential economic correction, namely that they are actively managed and offer periodic liquidity. Flynn also recommends listed funds such as CEFs, BDCs and REITs because investors can buy shares similar to buying shares of stock on an exchange.
To read the full article, please click here.
XAI Octagon Floating Rate & Alternative Income Term Trust Declares Monthly Distribution of $0.073 per Share
July 1, 2019, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0730 per share on the Trust's common shares, payable on August 1, 2019 to common shareholders of record as of July 16, 2019, as noted below. The amount of the distribution represents no change from the previous month's distribution amount.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date: July 15, 2019
Record Date: July 16, 2019
Payable Date: August 1, 2019
Amount: $0.073 per common share
Change from Previous Month: No Change
Distributions on common shares are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2019 calendar year. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
TThe investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets (as defined in the Prospectus for the Trust) in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective. The Trust closed its initial public offering on September 27, 2017. The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XAI Investments LLC ("XAI") is a Chicago-based firm founded by XMS Capital Partners in
April, 2016. XAI believes that the investing public can benefit from new vehicles to access
a broad range of alternative investment strategies and managers. XAI provides individual
investors with access to institutional-caliber alternative managers. It will partner with
established asset managers with proven capabilities in alternative credit, private debt and
select hedge fund strategies.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial
services firm providing M&A, corporate advisory and asset management services to
clients. It has offices in Chicago, Boston, London and Dublin. For more information, please
visitwww.xmscapital.com.
About Octagon Credit Investors
Octagon is a 20+ year old, below-investment grade corporate credit investment adviser
based in New York with over $22 billion in assets under management. Octagon focuses on
leveraged loans, high yield bonds and structured credit. Through fundamental credit analysis
and active portfolio management, Octagon's investment team identifies attractive relative
value opportunities across below-investment grade asset classes, sectors and issuers.
Octagon's investment philosophy and methodology encourage and rely upon dynamic internal
communication to manage portfolio risk. Over its history, the firm has applied a
disciplined, repeatable and scalable approach in its effort to generate attractive
risk-adjusted returns to its investors. For more information, please visit www.octagoncredit.com.
XAI does not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Hank Hakewill, Hakewill & Associates
Phone: 847-256-5420 (office); 847-714-6561 (cell)
Email: hankhake@yahoo.com
New Article on Alts in Retirement Features XA Investments
In the new FA Magazine article, "The Case For Alternatives In Retirement Portfolios," Gregory Bresiger relays some of the key points from an XA Investments sponsored seminar on diversifying retirement portfolios. The main takeaways primarily centered around the idea of including alternatives in retirement portfolios to increase returns and decrease volatility.
Bresiger also calls attention to a recent study conducted by Willis Towers Watson and Angela Antonelli, which concluded that a target-date portfolio with an allocation to alternatives "generates about 17 percent more than an undiversified portfolio for each $100,000 in annual pre-retirement wages." While investors may be inclined to favor equities over alternatives in retirement portfolios based upon the outstanding performance exhibited by stocks over the past decade, seminar panelists asserted that the case for alternatives will become increasingly clear as U.S. equities converge back to their mean.
To read the full article, please click here.
XAI Octagon Floating Rate & Alternative Income Term Trust Declares Monthly Distribution of $0.073 per Share
June 3, 2019, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0730 per share on the Trust's common shares, payable on July 1, 2019 to common shareholders of record as of June 17, 2019, as noted below. The amount of the distribution represents no change from the previous month's distribution amount.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date: June 14, 2019
Record Date: June 17, 2019
Payable Date: July 1, 2019
Amount: $0.073 per common share
Change from Previous Month: No Change
Distributions on common shares are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2019 calendar year. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets (as defined in the Prospectus for the Trust) in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective. The Trust closed its initial public offering on September 27, 2017. The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XAI Investments LLC ("XAI") is a Chicago-based firm founded by XMS Capital Partners in
April, 2016. XAI believes that the investing public can benefit from new vehicles to access
a broad range of alternative investment strategies and managers. XAI provides individual
investors with access to institutional-caliber alternative managers. It will partner with
established asset managers with proven capabilities in alternative credit, private debt and
select hedge fund strategies.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial
services firm providing M&A, corporate advisory and asset management services to
clients. It has offices in Chicago, Boston, London and Dublin. For more information, please
visit www.xmscapital.com.
About Octagon Credit Investors
Octagon is a 20+ year old, below-investment grade corporate credit investment adviser
based in New York with over $22 billion in assets under management. Octagon focuses on
leveraged loans, high yield bonds and structured credit. Through fundamental credit analysis
and active portfolio management, Octagon's investment team identifies attractive relative
value opportunities across below-investment grade asset classes, sectors and issuers.
Octagon's investment philosophy and methodology encourage and rely upon dynamic internal
communication to manage portfolio risk. Over its history, the firm has applied a
disciplined, repeatable and scalable approach in its effort to generate attractive
risk-adjusted returns to its investors. For more information, please visit www.octagoncredit.com.
XAI does not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Hank Hakewill, Hakewill & Associates
Phone: 847-256-5420 (office); 847-714-6561 (cell)
Email: hankhake@yahoo.com
XAI Octagon Floating Rate & Alternative Income Term Trust Increases its Monthly Distribution to $0.073 per Share
May 1, 2019, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's common shares, payable on June 3, 2019 to common shareholders of record as of May 15, 2019, as noted below. The amount of the distribution represents a 5.8% increase from the previous month's distribution amount of $0.069 per share.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date: May 14, 2019
Record Date: May 15, 2019
Payable Date: June 3, 2019
Amount: $0.073 per common share
Change from Previous Month: 5.8% increase
Distributions on common shares are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2019 calendar year. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. XAI believes
that the investing public can benefit from new vehicles to access a broad range of
alternative investment strategies and managers. XAI provides individual investors with
access to institutional-caliber alternative managers. It will partner with established asset
managers with proven capabilities in alternative credit, private debt and select hedge fund
strategies.
About XMS Capital Partners
XMS Capital Partners, established in 2006, is a global, independent, financial services
firm providing M&A, corporate advisory and asset management services to clients. It has
offices in Chicago, Boston, London and Dublin. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon is a 20+ year old, below-investment grade corporate credit investment adviser
based in New York with approximately $22.3 billion in assets under management as of March
31, 2019. Octagon focuses on leveraged loans, high yield bonds and structured credit.
Through fundamental credit analysis and active portfolio management, Octagon's investment
team identifies attractive relative value opportunities across below-investment grade asset
classes, sectors and issuers. Octagon's investment philosophy and methodology encourage and
rely upon dynamic internal communication to manage portfolio risk. Over its history, the
firm has applied a disciplined, repeatable and scalable approach in its effort to generate
attractive risk-adjusted returns to its investors. For more information, please visit www.octagoncredit.com.
XAI does not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Hank Hakewill, Hakewill & Associates
Phone: 847-256-5420 (office); 847-714-6561 (cell)
Email: hankhake@yahoo.com
Kimberly Flynn Quoted in Reuters Article Covering Potential New CEF Requirements
In the Reuters article, "SEC proposal pushes managers to disclose more information," Kristen Haunss and Leela Parker Deo educate investors on a new regulatory proposal requiring closed-end fund managers to provide shareholders with greater information than they were legally obligated to provide in the past.
Previously, CEF managers were required to report fund financial statements. The SEC recommends that managers now also provide a management's discussion of fund performance (MDFP) and total returns for one-, five-, and 10-year periods, among other things.
Kimberly Flynn, XA Investments Managing Director, discusses the current disparity between the level of disclosure given by different CEF managers. Flynn says that some managers consistently provide detailed information about fund performance, market conditions, investment strategies and more to investors, while others only comply with the minimum disclosure required. She adds that while the additional information provided by some managers may be "extra credit" currently, these requirements may become "useful tools" for all CEF shareholders in the future.
To read the full article, please click here.
XA Investments Discusses Risk Considerations in Citywire Article on Interval Funds
In her recent article, "Pause for thought: Gatekeepers consider interval funds," Vicky Ge Huang explores the recent surge in investor demand for interval funds. She explains that this newfound interest is largely driven by the interval fund's accessibility to a broad spectrum of investors and its ability to house a wide variety of asset classes. Most notably, interval funds provide a favorable structure for alternative investments.
Interval funds are able to invest in these institutional-caliber assets because they have lower liquidity requirements than mutual funds. While illiquidity can result in higher returns and lower volatility, it also creates additional risk.
In the article, Kimberly Flynn, XA Investments Managing Director of Alternative Investments, suggests there are implications resulting from the interval fund's less liquid structure, which should be carefully considered. Flynn describes the quarterly tender feature of interval funds as a "gate." This gate gives shareholders the opportunity to exit the fund once every quarter, but if there are more tenders or "exits" than subscriptions, the gate closes. For this reason, investors in interval funds must properly consider both benefits and risks.
To read the full article, please click here.
XAI Octagon Floating Rate & Alternative Income Term Trust Declares Monthly Distribution
April 1, 2019, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0690 per share on the Trust's common shares, payable on May 1, 2019 to common shareholders of record as of April 16, 2019, as noted below. The amount of the distribution represents no change from the previous month's distribution amount.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date: April 15, 2019
Record Date: April 16, 2019
Payable Date: May 1, 2019
Amount: $0.0690 per common share
Change from Previous Month: No Change
Distributions on common shares are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2019 calendar year. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets (as defined in this Prospectus) in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective. The Trust closed its initial public offering on September 27, 2017. The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. XAI believes
that the investing public can benefit from new vehicles to access a broad range of
alternative investment strategies and managers. XAI provides individual investors with
access to institutional-caliber alternative managers. It will partner with established asset
managers with proven capabilities in alternative credit, private debt and select hedge fund
strategies.
About XMS Capital Partners
XMS, established in 2006, is a global, independent, financial services firm providing
M&A, corporate advisory and asset management services to clients. It has offices in
Chicago, London and Dublin.
About Octagon Credit Investors
Octagon is a 20+ year old, below-investment grade corporate credit investment adviser
based in New York with over $21 billion in assets under management. Octagon focuses on
leveraged loans, high yield bonds and structured credit. Through fundamental credit analysis
and active portfolio management, Octagon's investment team identifies attractive relative
value opportunities across below-investment grade asset classes, sectors and issuers.
Octagon's investment philosophy and methodology encourage and rely upon dynamic internal
communication to manage portfolio risk. Over its history, the firm has applied a
disciplined, repeatable and scalable approach in its effort to generate attractive
risk-adjusted returns to its investors. For more information, please visit www.octagoncredit.com.
XAI does not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Hank Hakewill, Hakewill & Associates
Phone: 847-256-5420 (office); 847-714-6561 (cell)
Email: hankhake@yahoo.com
XAI Octagon Floating Rate & Alternative Income Term Trust Declares Monthly Distribution
March 1, 2019, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0690 per share on the Trust's common shares, payable on April 1, 2019 to common shareholders of record as of March 15, 2019, as noted below. The amount of the distribution represents no change from the previous month's distribution amount.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date: March 14, 2019
Record Date: March 15, 2019
Payable Date: April 1, 2019
Amount: $0.0690 per common share
Change from Previous Month: No Change
Distributions on common shares are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2019 calendar year. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets (as defined in this Prospectus) in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective. The Trust closed its initial public offering on September 27, 2017. The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. XAI believes
that the investing public can benefit from new vehicles to access a broad range of
alternative investment strategies and managers. XAI provides individual investors with
access to institutional-caliber alternative managers. It will partner with established asset
managers with proven capabilities in alternative credit, private debt and select hedge fund
strategies.
About XMS Capital Partners
XMS, established in 2006, is a global, independent, financial services firm providing
M&A, corporate advisory and asset management services to clients. It has offices in
Chicago, London and Dublin.
About Octagon Credit Investors
Octagon is a 20+ year old, below-investment grade corporate credit investment adviser
based in New York with over $21 billion in assets under management. Octagon focuses on
leveraged loans, high yield bonds and structured credit. Through fundamental credit analysis
and active portfolio management, Octagon's investment team identifies attractive relative
value opportunities across below-investment grade asset classes, sectors and issuers.
Octagon's investment philosophy and methodology encourage and rely upon dynamic internal
communication to manage portfolio risk. Over its history, the firm has applied a
disciplined, repeatable and scalable approach in its effort to generate attractive
risk-adjusted returns to its investors. For more information, please visit www.octagoncredit.com.
XAI does not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Hank Hakewill, Hakewill & Associates
Phone: 847-256-5420 (office); 847-714-6561 (cell)
Email: hankhake@yahoo.com
XAI Octagon Floating Rate & Alternative Income Term Trust Declares Monthly Distribution
February 1, 2019, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0690 per share on the Trust's common shares, payable on March 1, 2019 to common shareholders of record as of February 15, 2019, as noted below. The amount of the distribution represents no change from the previous month's distribution amount.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date: February 14, 2019
Record Date: February 15, 2019
Payable Date: March 1, 2019
Amount: $0.0690 per common share
Change from Previous Month: No Change
Distributions on common shares are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2019 calendar year. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets (as defined in this Prospectus) in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective. The Trust closed its initial public offering on September 27, 2017. The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. XAI believes
that the investing public can benefit from new vehicles to access a broad range of
alternative investment strategies and managers. XAI provides individual investors with
access to institutional-caliber alternative managers. It will partner with established asset
managers with proven capabilities in alternative credit, private debt and select hedge fund
strategies.
About XMS Capital Partners
XMS, established in 2006, is a global, independent, financial services firm providing
M&A, corporate advisory and asset management services to clients. It has offices in
Chicago, London and Dublin.
About Octagon Credit Investors
Octagon is a 20+ year old, $20.3 billion below-investment grade corporate credit
investment adviser based in New York. Octagon focuses on leveraged loans, high yield bonds
and structured credit. Through fundamental credit analysis and active portfolio management,
Octagon's investment team identifies attractive relative value opportunities across
below-investment grade asset classes, sectors and issuers. Octagon's investment philosophy
and methodology encourage and rely upon dynamic internal communication to manage portfolio
risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach
in its effort to generate attractive risk-adjusted returns to its investors. For more
information, please visit www.octagoncredit.com.
XAI does not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Hank Hakewill, Hakewill & Associates
Phone: 847-256-5420 (office); 847-714-6561 (cell)
Email: hankhake@yahoo.com
XAI Octagon Floating Rate & Alternative Income Term Trust Declares Monthly Distribution
January 2, 2019, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0690 per share on the Trust's common shares, payable on February 1, 2019 to common shareholders of record as of January 15, 2019, as noted below. The amount of the distribution represents no change from the previous month's distribution amount.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date: January 14, 2019
Record Date: January 15, 2019
Payable Date: February 1, 2019
Amount: $0.0690 per common share
Change from Previous Month: No Change
Distributions on common shares are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2019 calendar year. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets (as defined in this Prospectus) in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective. The Trust closed its initial public offering on September 27, 2017. The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. XAI believes
that the investing public can benefit from new vehicles to access a broad range of
alternative investment strategies and managers. XAI provides individual investors with
access to institutional-caliber alternative managers. It will partner with established asset
managers with proven capabilities in alternative credit, private debt and select hedge fund
strategies.
About XMS Capital Partners
XMS, established in 2006, is a global, independent, financial services firm providing
M&A, corporate advisory and asset management services to clients. It has offices in
Chicago, London and Dublin.
About Octagon Credit Investors
Octagon is a 20+ year old, $20.3 billion below-investment grade corporate credit
investment adviser based in New York. Octagon focuses on leveraged loans, high yield bonds
and structured credit. Through fundamental credit analysis and active portfolio management,
Octagon's investment team identifies attractive relative value opportunities across
below-investment grade asset classes, sectors and issuers. Octagon's investment philosophy
and methodology encourage and rely upon dynamic internal communication to manage portfolio
risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach
in its effort to generate attractive risk-adjusted returns to its investors. For more
information, please visit www.octagoncredit.com.
XAI does not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Hank Hakewill, Hakewill & Associates
Phone: 847-256-5420 (office); 847-714-6561 (cell)
Email: hankhake@yahoo.com
XAI Octagon Floating Rate & Alternative Income Term Trust Declares Monthly Distribution
December 3, 2018, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0690 per share on the Trust's common shares, payable on December 31, 2018 to common shareholders of record as of December 17, 2018, as noted below. The amount of the distribution represents no change from the previous month's distribution amount.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date: December 14, 2018
Record Date: December 17, 2018
Payable Date: December 31, 2018
Amount: $0.0690 per common share
Change from Previous Month: No Change
Distributions on common shares are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2018 calendar year. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets (as defined in this Prospectus) in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective. The Trust closed its initial public offering on September 27, 2017. The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. XAI believes
that the investing public can benefit from new vehicles to access a broad range of
alternative investment strategies and managers. XAI provides individual investors with
access to institutional-caliber alternative managers. It will partner with established asset
managers with proven capabilities in alternative credit, private debt and select hedge fund
strategies.
About XMS Capital Partners
XMS, established in 2006, is a global, independent, financial services firm providing
M&A, corporate advisory and asset management services to clients. It has offices in
Chicago, London and Dublin.
About Octagon Credit Investors
Octagon is a 20+ year old, $20.3 billion below-investment grade corporate credit
investment adviser based in New York. Octagon focuses on leveraged loans, high yield bonds
and structured credit. Through fundamental credit analysis and active portfolio management,
Octagon's investment team identifies attractive relative value opportunities across
below-investment grade asset classes, sectors and issuers. Octagon's investment philosophy
and methodology encourage and rely upon dynamic internal communication to manage portfolio
risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach
in its effort to generate attractive risk-adjusted returns to its investors. For more
information, please visit www.octagoncredit.com.
XAI does not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Hank Hakewill, Hakewill & Associates
Phone: 847-256-5420 (office); 847-714-6561 (cell)
Email: hankhake@yahoo.com
Financial Advisor Magazine Focuses on Alt Managers Gravitating Towards Interval Closed-End Funds with Insight from XAI's Kimberly Flynn
In a November article, published by Financial Advisor Magazine, entitled "Alternative Managers Gravitating Toward Interval Fund Structure" Juliette Fairley describes the interest generated by new products coming to the market in the interval fund space.
Kimberly Flynn, Managing Director at XA Investments contributes to the article and details the structural differences of interval close-end funds versus other common investment products. To read the full article, please click here.
XAI Octagon Floating Rate & Alternative Income Term Trust Declares Monthly Distribution
November 1, 2018, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0690 per share on the Trust's common shares, payable on December 3, 2018 to common shareholders of record as of November 15, 2018, as noted below. The amount of the distribution represents no change from the previous month's distribution amount.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date: November 14, 2018
Record Date: November 15, 2018
Payable Date: December 3, 2018
Amount: $0.0690 per common share
Change from Previous Month: No Change
Distributions on common shares are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2018 calendar year. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets (as defined in this Prospectus) in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective. The Trust closed its initial public offering on September 27, 2017. The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. XAI believes
that the investing public can benefit from new vehicles to access a broad range of
alternative investment strategies and managers. XAI provides individual investors with
access to institutional-caliber alternative managers. It will partner with established asset
managers with proven capabilities in alternative credit, private debt and select hedge fund
strategies.
About XMS Capital Partners
XMS, established in 2006, is a global, independent, financial services firm providing
M&A, corporate advisory and asset management services to clients. It has offices in
Chicago, London and Dublin.
About Octagon Credit Investors
Octagon is a 20+ year old, $20.3 billion below-investment grade corporate credit
investment adviser based in New York. Octagon focuses on leveraged loans, high yield bonds
and structured credit. Through fundamental credit analysis and active portfolio management,
Octagon's investment team identifies attractive relative value opportunities across
below-investment grade asset classes, sectors and issuers. Octagon's investment philosophy
and methodology encourage and rely upon dynamic internal communication to manage portfolio
risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach
in its effort to generate attractive risk-adjusted returns to its investors. For more
information, please visit www.octagoncredit.com.
XAI does not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Hank Hakewill, Hakewill & Associates
Phone: 847-256-5420 (office); 847-714-6561 (cell)
Email: hankhake@yahoo.com
Increasing Retail Investor Access to Alternatives is Discussed by XAI in Fund Intelligence Article
At an event hosted by XA Investments at the NYSE, XAI's Managing Director Kimberly Flynn spoke on the focus of XAI to bring alternative investments to a wider audience of retail investors. Interval funds have grown in popularity among financial advisors and family offices.
To read more on the Fund Intelligence article titled "CEF Pros Push for Simpler Alts Interval Funds" by Noah Zuss, click here.
Flynn Comments on Strong US Loan Performance Amid Equity Volatility in a Reuters Article
Yun Li authored a recent Reuters article entitled "U.S. Loans Hold Strong Amid Rising Equity Volatility," which described how leveraged loans stood out as a best-performing asset class during high volatility in global equities in October 2018.
Kimberly Flynn, Managing Director at XA Investments noted shifts in investors' portfolios towards floating-rate loans. To read the full article, click here.
XAI Octagon Floating Rate & Alternative Income Term Trust Declares Monthly Distribution
October 1, 2018, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0690 per share on the Trust's common shares, payable on November 1, 2018 to common shareholders of record as of October 15, 2018, as noted below. The amount of the distribution represents no change from the previous month's distribution amount.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date: October 12, 2018
Record Date: October 15, 2018
Payable Date: November 1, 2018
Amount: $0.0690 per common share
Change from Previous Month: No Change
Distributions on common shares are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2018 calendar year. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets (as defined in this Prospectus) in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective. The Trust closed its initial public offering on September 27, 2017. The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. XAI believes
that the investing public can benefit from new vehicles to access a broad range of
alternative investment strategies and managers. XAI provides individual investors with
access to institutional-caliber alternative managers. It will partner with established asset
managers with proven capabilities in alternative credit, private debt and select hedge fund
strategies.
About XMS Capital Partners
XMS, established in 2006, is a global, independent, financial services firm providing
M&A, corporate advisory and asset management services to clients. It has offices in
Chicago, London and Dublin.
About Octagon Credit Investors
Octagon is a 20+ year old, $19.7 billion below-investment grade corporate credit
investment adviser based in New York. Octagon focuses on leveraged loans, high yield bonds
and structured credit. Through fundamental credit analysis and active portfolio management,
Octagon's investment team identifies attractive relative value opportunities across
below-investment grade asset classes, sectors and issuers. Octagon's investment philosophy
and methodology encourage and rely upon dynamic internal communication to manage portfolio
risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach
in its effort to generate attractive risk-adjusted returns to its investors. For more
information, please visit www.octagoncredit.com.
XAI does not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Hank Hakewill, Hakewill & Associates
Phone: 847-256-5420 (office); 847-714-6561 (cell)
Email: hankhake@yahoo.com
Financial Times FundFire's Friday People Roundup Highlights the Addition of XAI Business Development Professional
In a recently published FundFire article entitled "Chicago Alts Credit Shop Adds Sales Pro," Tom Stabile describes the expansion of the XA Investment business development team with the key hire of Addison West. Addison West handles alternatives education and distribution nationally for the independent registered investment advisor, family office, bank, and insurance advisor markets. He joins a team of sales veterans at XAI including Aaron Wismar and Jennifer Pruett. To read the full article, please click here.
XAI Contributes to Financial Times FundFire Article on Innovations in BDC and CEF Structures
In a recently published FundFire article entitled "New SEC Filing Aims to Crack Open BDC Sales," Tom Stabile highlights the latest developments in BDC and CEF structuring and the use of multiple share classes and other methods to broaden distribution of such products across various channels. To read the full article, please click here.
KKR and FS Investments have filed for SEC relief on multiple share classes for their non-listed BDCs to be marketed on different sales terms to different channels. Without the exemptions from the Investment Adviser's Act of 1940, BDC and CEF managers can offer only one share class, limiting sales to smaller slices of the advisor market.
Kimberly Flynn, Managing Director at XA Investments contributed to the article. Flynn notes that winning the exemptions would improve the BDC's sales prospects. XA Investments found another way to market its new non-listed credit CEF to different advisor markets without seeking multiple share class exemptive relief. The CEF starts out with a no-sales load offering targeting the RIA market first, then will have a 30-day sales window in the wirehouse channel, just prior to publicly listing the fund, which will pave the way into other brokerage channels.
XAI Octagon Floating Rate & Alternative Income Term Trust Declares Monthly Distribution
September 4, 2018, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0690 per share on the Trust's common shares, payable on October 1, 2018 to common shareholders of record as of September 17, 2018, as noted below. The amount of the distribution represents no change from the previous month's distribution amount.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date: September 14, 2018
Record Date: September 17, 2018
Payable Date: October 1, 2018
Amount: $0.0690 per common share
Change from Previous Month No Change
Distributions on common shares are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2018 calendar year. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets (as defined in this Prospectus) in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective. The Trust closed its initial public offering on September 27, 2017. The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. XAI believes
that the investing public can benefit from new vehicles to access a broad range of
alternative investment strategies and managers. XAI provides individual investors with
access to institutional-caliber alternative managers. It will partner with established asset
managers with proven capabilities in alternative credit, private debt and select hedge fund
strategies.
About XMS Capital Partners
XMS, established in 2006, is a global, independent, financial services firm providing
M&A, corporate advisory and asset management services to clients. It has offices in
Chicago, London and Dublin.
About Octagon Credit Investors
Octagon is a 20+ year old, $19.7 billion below-investment grade corporate credit
investment adviser based in New York. Octagon focuses on leveraged loans, high yield bonds
and structured credit. Through fundamental credit analysis and active portfolio management,
Octagon's investment team identifies attractive relative value opportunities across
below-investment grade asset classes, sectors and issuers. Octagon's investment philosophy
and methodology encourage and rely upon dynamic internal communication to manage portfolio
risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach
in its effort to generate attractive risk-adjusted returns to its investors. For more
information, please visit www.octagoncredit.com.
XAI does not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Hank Hakewill, Hakewill & Associates
Phone: 847-256-5420 (office); 847-714-6561 (cell)
Email: hankhake@yahoo.com
XAI Octagon Floating Rate & Alternative Income Term Trust Declares Monthly Distribution
August 1, 2018, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0690 per share on the Trust's common shares, payable on September 4, 2018 to common shareholders of record as of August 15, 2018, as noted below. The amount of the distribution represents no change from the previous month's distribution amount.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date: August 14, 2018
Record Date: August 15, 2018
Payable Date: September 4, 2018
Amount: $0.0690 per common share
Change from Previous Month No Change
Distributions on common shares are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2018 calendar year. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets (as defined in this Prospectus) in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective. The Trust closed its initial public offering on September 27, 2017. The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. XAI believes
that the investing public can benefit from new vehicles to access a broad range of
alternative investment strategies and managers. XAI provides individual investors with
access to institutional-caliber alternative managers. It will partner with established asset
managers with proven capabilities in alternative credit, private debt and select hedge fund
strategies.
About XMS Capital Partners
XMS, established in 2006, is a global, independent, financial services firm providing
M&A, corporate advisory and asset management services to clients. It has offices in
Chicago, London and Dublin.
About Octagon Credit Investors
Octagon is a 20+ year old, $19.7 billion below-investment grade corporate credit
investment adviser based in New York. Octagon focuses on leveraged loans, high yield bonds
and structured credit. Through fundamental credit analysis and active portfolio management,
Octagon's investment team identifies attractive relative value opportunities across
below-investment grade asset classes, sectors and issuers. Octagon's investment philosophy
and methodology encourage and rely upon dynamic internal communication to manage portfolio
risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach
in its effort to generate attractive risk-adjusted returns to its investors. For more
information, please visit www.octagoncredit.com.
XAI does not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Hank Hakewill, Hakewill & Associates
Phone: 847-256-5420 (office); 847-714-6561 (cell)
Email: hankhake@yahoo.com
XA Investments Senior Advisor Comments on Best Communication Practices for Fund Managers
The recently published FundFire article, "Oaktree Pulls Plug on New Energy Infra Fund," discusses the decision by Oaktree Capital Management to abandon its energy infrastructure fund. The fund is one of two that resulted from Oaktree splitting a combined-strategy fund in 2017. Oaktree did not clarify whether it had yet raised any capital for the fund and, if so, whether it had a plan in place to return or repurpose such capital.
Author Tom Stabile notes that how the fund manager chose to communicate the information with clients is unclear; Oaktree announced its decision on an earnings call to analysts. In response, XA Investments Senior Advisor Hank Hakewill outlines some of the best practices for fund managers to follow when communicating bad news to investors.
Hakewill says that being "honest" and "upfront" when delivering unfavorable news can foster trust between investors and managers. He also highlights the importance of reporting the information to all investors at once to reassure that they are viewed equally. Proper communication provides fund managers with an opportunity to show that they are willing to accept responsibility for mistakes and work to correct them, potentially even improving their long-term reputation among investors, he says.
To read the full article, please click here.
FundFire Article Discusses Schwab's Decision to Halt Addition of New Interval Funds
Tom Stabile's recent article, "Schwab Pulls Back on New Interval Funds," examines the absence of new interval funds on Charles Schwab's product platforms. Although a spokeswoman from Schwab insists there is no formal ban on these investment vehicles, Stabile noted other Schwab contacts had indicated the custodian "paused" the addition of new interval funds due to low demand among advisors.
Industry sources say Schwab's hesitation is common among custodians and wealth advisors who may have an incomplete understanding of the vehicle and its behavior in the event of a market correction. However, fund managers continue to augment the supply of new product, with firms like Blackstone Group and Carlyle Group launching interval funds in recent months.
Kimberly Flynn, XA Investments Managing Director of Alternative Investments, contributes to the article. She says that although some advisory firms are experiencing high demand and ample supply of new interval funds, these funds can present an "operational challenge." Interval funds differ significantly from both mutual funds and private funds, and there is confusion as to how these funds can fit within the confines of the firms' existing systems.
To read the full article, please click here.
Barron's Features XA Investments in New Article about Closed-End Funds Offering CLO Access
In his recent article entitled "Where to Go for Double-Digit Yields," Randall Forsyth explores the high-yielding, but lesser-known, asset class of collateralized loan obligations ("CLOs"). Forsyth explains that CLOs are comprised of leveraged loans, making them similar to high yield bonds. However, he notes that CLOs have two primary structural advantages over high yield bonds, namely that they are higher up in the capital structure and that their floating rate nature offers protection in a rising rate environment.
Forsyth also suggests that closed-end funds represent a better fund structure for CLOs (and other illiquid assets) relative to mutual funds. He provides three examples of closed-end funds that invest in CLOs, including the XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT"). XFLT, he says, offers more protection and less risk than funds with a higher allocation to CLO equity and also offers a higher-yielding alternative to exchange-traded funds containing floating rate loans.
Kimberly Flynn, XA Investments Managing Director of Alternative Investments, contributes to the article. She adds that XFLT utilizes an institutional strategy structured specifically to provide individual investors with liquidity (CLOs are typically an illiquid investment) and low correlation to movements in stock or bond markets.
The author notes that while CLOs have generated high yields and low risk (they even performed well during the '08-09 credit crisis), closed-end funds with CLO exposure tend to have higher fees than most closed-end funds.
To read the full article, please click here.
XAI Octagon Floating Rate & Alternative Income Term Trust Declares Monthly Distribution
July 2, 2018, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0690 per share on the Trust's common shares, payable on August 1, 2018 to common shareholders of record as of July 16, 2018, as noted below. The amount of the distribution represents no change from the previous month's distribution amount.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date: July 13, 2018
Record Date: July 16, 2018
Payable Date: August 1, 2018
Amount: $0.0690 per common share
Change from Previous Month: No Change
Distributions on common shares are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2018 calendar year. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets (as defined in this Prospectus) in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective. The Trust closed its initial public offering on September 27, 2017. The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. XAI believes
that the investing public can benefit from new vehicles to access a broad range of
alternative investment strategies and managers. XAI provides individual investors with
access to institutional-caliber alternative managers. It will partner with established asset
managers with proven capabilities in alternative credit, private debt and select hedge fund
strategies.
About XMS Capital Partners
XMS, established in 2006, is a global, independent, financial services firm providing
M&A, corporate advisory and asset management services to clients. It has offices in
Chicago, London and Dublin.
About Octagon Credit Investors
Octagon is a 20+ year old, $19.2 billion below-investment grade corporate credit
investment adviser based in New York. Octagon focuses on leveraged loans, high yield bonds
and structured credit. Through fundamental credit analysis and active portfolio management,
Octagon's investment team identifies attractive relative value opportunities across
below-investment grade asset classes, sectors and issuers. Octagon's investment philosophy
and methodology encourage and rely upon dynamic internal communication to manage portfolio
risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach
in its effort to generate attractive risk-adjusted returns to its investors. For more
information, please visit www.octagoncredit.com.
XAI does not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Hank Hakewill, Hakewill & Associates
Phone: 847-256-5420 (office); 847-714-6561 (cell)
Email: hankhake@yahoo.com
XA Investments Notes Growing Number of Partnerships among Alternatives Managers and Distribution Firms in New FundFire Article
Tom Stabile's new article, "Apollo Teams with American Beacon on Advisor Alts Fund," discusses the partnership between Apollo Global Management and American Beacon Advisors to launch an upcoming interval fund based on an existing Apollo hedge fund strategy.
Kimberly Flynn, XA Investments Managing Director of Alternative Investments, contributes to the FundFire article, describing the upcoming fund as "a combination of illiquid and liquid credit, combining traditional with private and alternative instruments. . . managed by an investment team that knows how to allocate."
The partnership between Apollo and American Beacon is just one of many that have been appearing in recent months. Flynn explains the advantage for alternatives managers who launch funds with distribution firms, namely that they gain access to an experienced sales team. "This is all about sales and distribution," she says. "Apollo has done a thorough review of their options. They're focused on raising assets here and they want scale." To read the full article, please click here.
XA Investments Comments on Launch of OFI Carlyle Private Credit Fund in New Reuters Article
Yun Li authors new article titled, "OppenheimerFunds, Carlyle launch new private credit interval fund," and discusses the trend of new funds making less liquid/illiquid alternative investment strategies available to retail investors.
XA Investments Managing Director of Alternative Investments Kimberly Flynn contributes to the article, noting the advantages of moving away from the typical mutual fund structure when offering alternative strategies to "yield-craving retail investors."
Flynn explains the need for non-traditional fund structures by saying, "it's harder and harder to sell a mutual fund in today's fee-sensitive environment. You need to offer something truly alternative that has the potential to produce alpha (excess returns). It may also be a conversation starter to sell the rest of their other product lineup." For the full article, click here.
For more information about accessing institutional alternatives and the advantages of investing in less liquid assets, read the XA Investments white paper on the topic of liquidity premiums, "Invest Like the Pros."
XAI Octagon Floating Rate & Alternative Income Term Trust Declares Monthly Distribution
June 1, 2018, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0690 per share on the Trust's common shares, payable on July 2, 2018 to common shareholders of record as of June 15, 2018, as noted below. The amount of the distribution represents no change from the previous month's distribution amount.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date: June 14, 2018
Record Date: June 15, 2018
Payable Date: July 2, 2018
Amount: $0.0690 per common share
Change from Previous Month: No Change
Distributions on common shares are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2018 calendar year. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets (as defined in this Prospectus) in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective. The Trust closed its initial public offering on September 27, 2017. The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. XAI believes
that the investing public can benefit from new vehicles to access a broad range of
alternative investment strategies and managers. XAI provides individual investors with
access to institutional-caliber alternative managers. It will partner with established asset
managers with proven capabilities in alternative credit, private debt and select hedge fund
strategies.
About XMS Capital Partners
XMS, established in 2006, is a global, independent, financial services firm providing
M&A, corporate advisory and asset management services to clients. It has offices in
Chicago, London and Dublin.
About Octagon Credit Investors
Octagon is a 20+ year old, $19.2 billion below-investment grade corporate credit
investment adviser based in New York. Octagon focuses on leveraged loans, high yield bonds
and structured credit. Through fundamental credit analysis and active portfolio management,
Octagon's investment team identifies attractive relative value opportunities across
below-investment grade asset classes, sectors and issuers. Octagon's investment philosophy
and methodology encourage and rely upon dynamic internal communication to manage portfolio
risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach
in its effort to generate attractive risk-adjusted returns to its investors. For more
information, please visit www.octagoncredit.com.
XAI does not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Hank Hakewill, Hakewill & Associates
Phone: 847-256-5420 (office); 847-714-6561 (cell)
Email: hankhake@yahoo.com
Reuters Article Examines Effects of Unprecedented First Quarter Demand in Leveraged Loan Market
The recently published Reuters article entitled "Loan repricings lead to market fatigue as deals pulled" discusses the impact of companies refinancing their existing loans at lower interest rates in recent months, namely that the leveraged loan market is now beginning to see loans trading below their issue prices and some deals being withdrawn due to "market fatigue" and an increased future loan supply.
However, authors Kristen Haunss, Jonathan Schwarzberg and Yun Li suggest that the decrease in demand for leveraged loans may simply be a temporary reaction to the high level of market activity in the past few months, and that long-term investor demand for leveraged loans will remain high.
Kimberly Flynn, XA Investments Managing Director of Alternative Investments, contributes to the article, agreeing that the recent slowing of the leveraged loan market "might be more of a short-term adjustment as opposed to something fundamental." Flynn explains that "spreads have tightened quite a bit so at some point investors are going to push back. The median and longer-term trends are that you have a lot of hungry buyers of loans." To read the full article, please click here.
XA Investments Contributes to Reuters Article Exploring Advantages of Interval Funds
In "New interval funds offer alternative investments to retail investors," authors Kristen Haunss and Yun Li discuss the recent rise in interval fund offerings that provide retail investors access to less liquid or illiquid alternative assets.
The Reuters article features Kimberly Flynn, Managing Director of Alternative Investments at XA Investments. To read the full article, please click here.
"Alternative managers are looking to access the growing retail marketplace," explains Flynn, "and firms can put more illiquid assets in an interval fund than a mutual fund because you don't have to meet redemptions each day."
XA Investments Featured in Reuters Article Discussing Increased Demand for Leveraged Loans
Yun Li of Reuters wrote an article entitled, "US leveraged loans in demand as asset class hits US$1trn milestone," describing increased demand for US leveraged loans amid strong first quarter performance.
Despite regulation which might have curbed market growth, the leveraged loan market has doubled since 2013. Li suggests this growth is attributable to rising CLO issuance, investor demand, a "benign" credit environment and strong fundamentals. She also notes that loans have historically outperformed other fixed-income instruments in rising rate environments.
XA Investment's Kimberly Flynn, Managing Director of Alternative Investments, says that we will see "a wave of interest [in senior loans] as advisers look to shift their portfolios." For the full article, click here.
XAI Octagon Floating Rate & Alternative Income Term Trust Declares Monthly Distribution
May 1, 2018, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0690 per share on the Trust's common shares, payable on June 1, 2018 to common shareholders of record as of May 15, 2018, as noted below. The amount of the distribution represents no change from the previous month's distribution amount.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date: May 14, 2018
Record Date: May 15, 2018
Payable Date: June 1, 2018
Amount: $0.0690 per common share
Change from Previous Month: No Change
Distributions on common shares are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2018 calendar year. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets (as defined in this Prospectus) in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective. The Trust closed its initial public offering on September 27, 2017. The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. XAI believes
that the investing public can benefit from new vehicles to access a broad range of
alternative investment strategies and managers. XAI provides individual investors with
access to institutional-caliber alternative managers. It will partner with established asset
managers with proven capabilities in alternative credit, private debt and select hedge fund
strategies.
About XMS Capital Partners
XMS, established in 2006, is a global, independent, financial services firm providing
M&A, corporate advisory and asset management services to clients. It has offices in
Chicago, London and Dublin.
About Octagon Credit Investors
Octagon is a 20+ year old, $17.9 billion below-investment grade corporate credit
investment adviser based in New York. Octagon focuses on leveraged loans, high yield bonds
and structured credit. Through fundamental credit analysis and active portfolio management,
Octagon's investment team identifies attractive relative value opportunities across
below-investment grade asset classes, sectors and issuers. Octagon's investment philosophy
and methodology encourage and rely upon dynamic internal communication to manage portfolio
risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach
in its effort to generate attractive risk-adjusted returns to its investors. For more
information, please visit www.octagoncredit.com.
XAI does not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Hank Hakewill, Hakewill & Associates
Phone: 847-256-5420 (office); 847-714-6561 (cell)
Email: hankhake@yahoo.com
XA Investments Senior Advisor Discusses Key Differentiators in Financial Times FundFire Article
In a recently published FundFire article entitled "Blackstone Fires Up New Direct Lending Biz," Tom Stabile describes the potential challenges Blackstone may face when venturing into a new market with a new set of products. To read the full article, please click here.
Hank Hakewill, Senior Advisor to XA Investments on Marketing and Communications, contributed to the article. Blackstone's strategy should include leveraging its brand and existing client base to ensure a successful launch of the new business, he explains.
In addition to cross-selling product and capitalizing on the firm's brand, Hakewill notes that Blackstone will have to overcome the usual challenges associated with launching new product in an arguably saturated market. Developing an edge relative to the competition will be a key component of Blackstone's success, Hakewill says. "Consultants will be willing to listen, but it still has to be a good story."
Financial Times FundFire Alts Magazine Explores Rapid Pace of Alternative Product Development
In the recently published Fundfire article entitled "Oaktree, Carlyle Lead New Round of Alts funds for Advisors," author Tom Stabile writes that product development is occurring at an accelerated pace following industry regulation and demand for greater liquidity and lower fees. The result is a proliferation of non-traded alternatives which hold greater appeal to advisors and individual investors.
XA Investments' Kimberly Flynn – Managing Director, Alternative Investments contributed to the article. Please click here for the article.
Flynn explains that the growing interest in alternative closed-end funds is a strategic way for firms to combat ongoing fee compression within the mutual fund industry. As profitability shrinks, firms are entering an evolutionary phase and offering new alternatives within new product structures. Flynn makes the distinction between non-traded alt funds offering institutional strategies and those offering liquid lower fee retail strategies: "I don't mind paying 2 and 20 if I'm getting what institutions are getting in terms of investments," she says. "Some advisors might think it's a bargain at 125 bps, but I'm not sure they'll know they are not getting institutional-quality assets."
XAI Octagon Floating Rate & Alternative Income Term Trust Declares Monthly Distribution
April 2, 2018, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0690 per share on the Trust's common shares, payable on May 1, 2018 to common shareholders of record as of April 16, 2018, as noted below. The amount of the distribution represents no change from the previous month's distribution amount.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date: April 13, 2018
Record Date: April 16, 2018
Payable Date: May 1, 2018
Amount: $0.0690 per common share
Change from Previous Month: No Change
Distributions on common shares are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2018 calendar year. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets (as defined in this Prospectus) in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective. The Trust closed its initial public offering on September 27, 2017. The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. XAI believes
that the investing public can benefit from new vehicles to access a broad range of
alternative investment strategies and managers. XAI provides individual investors with
access to institutional-caliber alternative managers. It will partner with established asset
managers with proven capabilities in alternative credit, private debt and select hedge fund
strategies.
About XMS Capital Partners
XMS, established in 2006, is a global, independent, financial services firm providing
M&A, corporate advisory and asset management services to clients. It has offices in
Chicago, London and Dublin.
About Octagon Credit Investors
Octagon is a 20+ year old, $17.9 billion below-investment grade corporate credit
investment adviser based in New York. Octagon focuses on leveraged loans, high yield bonds
and structured credit. Through fundamental credit analysis and active portfolio management,
Octagon's investment team identifies attractive relative value opportunities across
below-investment grade asset classes, sectors and issuers. Octagon's investment philosophy
and methodology encourage and rely upon dynamic internal communication to manage portfolio
risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach
in its effort to generate attractive risk-adjusted returns to its investors. For more
information, please visit www.octagoncredit.com.
XAI does not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Hank Hakewill, Hakewill & Associates
Phone: 847-256-5420 (office); 847-714-6561 (cell)
Email: hankhake@yahoo.com
XAI Octagon Floating Rate & Alternative Income Term Trust Declares Monthly Distribution
March 1, 2018, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0690 per share on the Trust's common shares, payable on April 2, 2018 to common shareholders of record as of March 15, 2018, as noted below. The amount of the distribution represents no change from the previous month's distribution amount.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date: March 14, 2018
Record Date: March 15, 2018
Payable Date: April 2, 2018
Amount: $0.0690 per common share
Change from Previous Month: No Change
Distributions on common shares are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2018 calendar year. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets (as defined in this Prospectus) in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective. The Trust closed its initial public offering on September 27, 2017. The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. XAI believes
that the investing public can benefit from new vehicles to access a broad range of
alternative investment strategies and managers. XAI provides individual investors with
access to institutional-caliber alternative managers. It will partner with established asset
managers with proven capabilities in alternative credit, private debt and select hedge fund
strategies.
About XMS Capital Partners
XMS, established in 2006, is a global, independent, financial services firm providing
M&A, corporate advisory and asset management services to clients. It has offices in
Chicago, London and Dublin.
About Octagon Credit Investors
Octagon is a 20+ year old, $17.9 billion below-investment grade corporate credit
investment adviser based in New York. Octagon focuses on leveraged loans, high yield bonds
and structured credit. Through fundamental credit analysis and active portfolio management,
Octagon's investment team identifies attractive relative value opportunities across
below-investment grade asset classes, sectors and issuers. Octagon's investment philosophy
and methodology encourage and rely upon dynamic internal communication to manage portfolio
risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach
in its effort to generate attractive risk-adjusted returns to its investors. For more
information, please visit www.octagoncredit.com.
XAI does not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Hank Hakewill, Hakewill & Associates
Phone: 847-256-5420 (office); 847-714-6561 (cell)
Email: hankhake@yahoo.com
XAI Octagon Floating Rate & Alternative Income Term Trust Declares Monthly Distribution
February 1, 2018, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0690 per share on the Trust's common shares, payable on March 1, 2018 to common shareholders of record as of February 15, 2018, as noted below. The amount of the distribution represents no change from the previous month's distribution amount.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date: February 14, 2018
Record Date: February 15, 2018
Payable Date: March 1, 2018
Amount: $0.0690 per common share
Change from Previous Month: No Change
Distributions on common shares are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2018 calendar year. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets (as defined in this Prospectus) in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective. The Trust closed its initial public offering on September 27, 2017. The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. XAI believes
that the investing public can benefit from new vehicles to access a broad range of
alternative investment strategies and managers. XAI provides individual investors with
access to institutional-caliber alternative managers. It will partner with established asset
managers with proven capabilities in alternative credit, private debt and select hedge fund
strategies.
About XMS Capital Partners
XMS, established in 2006, is a global, independent, financial services firm providing
M&A, corporate advisory and asset management services to clients. It has offices in
Chicago, London and Dublin.
About Octagon Credit Investors
Octagon is a 20+ year old, $16.9 billion below-investment grade corporate credit
investment adviser based in New York. Octagon focuses on leveraged loans, high yield bonds
and structured credit. Through fundamental credit analysis and active portfolio management,
Octagon's investment team identifies attractive relative value opportunities across
below-investment grade asset classes, sectors and issuers. Octagon's investment philosophy
and methodology encourage and rely upon dynamic internal communication to manage portfolio
risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach
in its effort to generate attractive risk-adjusted returns to its investors. For more
information, please visit www.octagoncredit.com.
XAI does not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Hank Hakewill, Hakewill & Associates
Phone: 847-256-5420 (office); 847-714-6561 (cell)
Email: hankhake@yahoo.com
XAI Octagon Floating Rate & Alternative Income Term Trust Declares Monthly Distribution
January 2, 2018, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0690 per share on the Trust's common shares, payable on February 1, 2018 to common shareholders of record as of January 16, 2018, as noted below. The amount of the distribution represents no change from the previous month's distribution amount.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date: January 12, 2018
Record Date: January 16, 2018
Payable Date: February 1, 2018
Amount: $0.0690 per common share
Change from Previous Month: No Change
Distributions on common shares are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2018 calendar year. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets (as defined in this Prospectus) in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective. The Trust closed its initial public offering on September 27, 2017. The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. XAI believes
that the investing public can benefit from new vehicles to access a broad range of
alternative investment strategies and managers. XAI provides individual investors with
access to institutional-caliber alternative managers. It will partner with established asset
managers with proven capabilities in alternative credit, private debt and select hedge fund
strategies.
About XMS Capital Partners
XMS, established in 2006, is a global, independent, financial services firm providing
M&A, corporate advisory and asset management services to clients. It has offices in
Chicago, London and Dublin.
About Octagon Credit Investors
Octagon is a 20+ year old, $16.9 billion below-investment grade corporate credit
investment adviser based in New York. Octagon focuses on leveraged loans, high yield bonds
and structured credit. Through fundamental credit analysis and active portfolio management,
Octagon's investment team identifies attractive relative value opportunities across
below-investment grade asset classes, sectors and issuers. Octagon's investment philosophy
and methodology encourage and rely upon dynamic internal communication to manage portfolio
risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach
in its effort to generate attractive risk-adjusted returns to its investors. For more
information, please visit www.octagoncredit.com.
XAI does not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Hank Hakewill, Hakewill & Associates
Phone: 847-256-5420 (office); 847-714-6561 (cell)
Email: hankhake@yahoo.com
Reuters Article on Term Trusts Features Kimberly Flynn and XFLT
In the Reuters article entitled "LPC: Loan market turns to term trust structure as investors search for yield," Kristen Haunss discusses continued interest in leveraged loans as well as closed-end term trusts which offer a set maturity date and more favorable trading history than perpetual closed-end funds. She suggests that a term trust might be the next evolution in closed-end funds citing the XAI Octagon Floating Rate & Alternative Income Term Trust (XFLT) as an example of this trend.
The article noted that Octagon Credit Investors teamed up with XA Investments for a term trust fund that may invest in first- and second-lien loans, and hold as much as 50% of its portfolio in the debt and equity of Collateralized Loan Obligation (CLO) funds.
Kimberly Flynn, Managing Director of Alternative Investments was interviewed by Ms. Haunss and points to the growing number of investors who are seeking protection from rising interest rates via view leveraged loans and CLO investments.
Please click here for the full article.
XAI Octagon Floating Rate & Alternative Income Term Trust Declares Monthly Distribution
December 1, 2017, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0690 per share on the Trust's common shares, payable on December 29, 2017 to common shareholders of record as of December 15, 2017, as noted below. The amount of the distribution represents no change from the previous month's distribution amount.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date: December 14, 2017
Record Date: December 15, 2017
Payable Date: December 29, 2017
Amount: $0.0690 per common share
Change from Previous Month: No Change
Distributions on common shares are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2017 calendar year. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets (as defined in this Prospectus) in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective. The Trust closed its initial public offering on September 27, 2017. The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. XAI believes
that the investing public can benefit from new vehicles to access a broad range of
alternative investment strategies and managers. XAI provides individual investors with
access to institutional-caliber alternative managers. It will partner with established asset
managers with proven capabilities in alternative credit, private debt and select hedge fund
strategies.
About XMS Capital Partners
XMS, established in 2006, is a global, independent, financial services firm providing
M&A, corporate advisory and asset management services to clients. It has offices in
Chicago, London and Dublin.
About Octagon Credit Investors
Octagon is a 20+ year old, $16.9 billion below-investment grade corporate credit
investment adviser based in New York. Octagon focuses on leveraged loans, high yield bonds
and structured credit. Through fundamental credit analysis and active portfolio management,
Octagon's investment team identifies attractive relative value opportunities across
below-investment grade asset classes, sectors and issuers. Octagon's investment philosophy
and methodology encourage and rely upon dynamic internal communication to manage portfolio
risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach
in its effort to generate attractive risk-adjusted returns to its investors. For more
information, please visit www.octagoncredit.com.
XAI does not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Hank Hakewill, Hakewill & Associates
Phone: 847-256-5420 (office); 847-714-6561 (cell)
Email: hankhake@yahoo.com
XA Investments Comments on Private Equity in Financial Times FundFire Alts
FundFire Alts recently published an article explaining how private equity and alternatives managers are aggressively investing in product development to better target the high-net worth investor and address fee sensitivities. For a link to "Lower Fee Private Equity Feeders Aim for Advisor Market" click here.
Kimberly Flynn, Managing Director-Alternative Investments contributed to Tom Stabile's article.
"It makes sense that both hedge fund and private equity managers would try to find ways to reduce the cost to the end investor," she says. "In alternatives, fees are not noise. You should really be thinking about the net-of fees, net-of expenses cost to clients." In addition to lower fees she also asserts that manager quality also drives investment decisions.
Bloomberg Covers Goldman's Plans in CLO Market; XA Investments Contributes
The Bloomberg article entitled "Goldman Plots Conquest of Wall Street's $100 Billion CLO Machine," describes how Goldman Sachs is capitalizing on a CLO market that is "booming" and on track for record issuance this year. Please click here for the full article.
Goldman's activity within the leveraged loan and CLO market has surged and highlights Goldman's opportunistic plans to increase market share.
Kimberly Flynn contributed to Sally Bakewell's article. "The two markets are integrally linked," said Kimberly Flynn, Managing Director for alternative investments at Chicago-based XA Investments. "CLOs are a rapidly growing and important part of the leveraged loan market."
XA Investments LLC and Octagon Credit Investors, LLC ring the NYSE Opening Bell®
New York, NY
On November 20th, the New York Stock Exchange welcomes executives and guests of XA
Investments LLC and Octagon Credit Investors, LLC to celebrate the XAI Octagon Floating Rate
& Alternative Income Term Trust (NYSE:XFLT).
Watch Video
XAI Octagon Floating Rate & Alternative Income Term Trust Announces Initial Distribution
November 1, 2017, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") is pleased to announce the declaration of its initial monthly distribution of $0.0690 per share on the Trust's common shares, payable on December 1, 2017 to common shareholders of record as of November 15, 2017, as noted below. Based on the Trust's initial public offering price of $10.00 per share, the distribution represents an annualized distribution rate of approximately 8.28%.
The following dates apply to today's monthly distribution declaration:
Ex-Dividend Date November 14, 2017
Record Date November 15, 2017
Payable Date December 1, 2017
Amount $0.0690 per common share
Distributions on common shares are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust's common shareholders on Form 1099 after the end of the 2017 calendar year. For further information regarding the Trust's distributions, please visit www.xainvestments.com.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets (as defined in this Prospectus) in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective. The Trust closed its initial public offering on September 27, 2017. The Trust's common shares are traded on the New York Stock Exchange under the symbol "XFLT."
About XA Investments
XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. XAI believes
that the investing public can benefit from new vehicles to access a broad range of
alternative investment strategies and managers. XAI provides individual investors with
access to institutional-caliber alternative managers. It will partner with established asset
managers with proven capabilities in alternative credit, private debt and select hedge fund
strategies.
About XMS Capital Partners
XMS, established in 2006, is a global, independent, financial services firm providing
M&A, corporate advisory and asset management services to clients. It has offices in
Chicago, London and Dublin.
About Octagon Credit Investors
Octagon is a 20+ year old, $16.9 billion below-investment grade corporate credit
investment adviser based in New York. Octagon focuses on leveraged loans, high yield bonds
and structured credit. Through fundamental credit analysis and active portfolio management,
Octagon's investment team identifies attractive relative value opportunities across
below-investment grade asset classes, sectors and issuers. Octagon's investment philosophy
and methodology encourage and rely upon dynamic internal communication to manage portfolio
risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach
in its effort to generate attractive risk-adjusted returns to its investors. For more
information, please visit www.octagoncredit.com.
XAI does not provide tax advice; consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Hank Hakewill, Hakewill & Associates
Phone: 847-256-5420 (office); 847-714-6561 (cell)
Email: hankhake@yahoo.com
Creditflux Reports on Growth in Credit Interval Funds
Creditflux recently published an article highlighting the increase of credit managers who are launching interval funds designed to target retail investors. Please click here for a link to "Angel Oak Joins Growth in Credit Interval Funds."
Kimberly Flynn – Managing Director, Alternative Investments contributed to the article.
Her advice to credit managers is to launch several funds which are capped in size and address specific investment demand as opposed to launching one evergreen fund. She then adds that "A lot of the new interval funds are languishing at the sub-$100 million level. The key to getting about the hurdle is partly having a track record, but also presenting registered investment advisors with a more urgent call to action."
XAI Featured in Emerging Manager Monthly
Matthew McCue, Editor of Emerging Manager Monthly, a publication of Financial Investment News, interviewed XA Investments' Kimberly Flynn in its October issue. In the article "XA On Lookout for Opportunities after Launching First Closed-End Fund," Kimberly Flynn discusses XA Investments' role as Adviser to the XAI Octagon Floating Rate & Alternative Income Term Trust (NYSE Listed: XFLT), a recently launched fund and the first in a series of alternative closed-end funds that XAI intends to launch. Please click here for the full article.
Kimberly Flynn notes XAI's interest in less liquid or illiquid institutional alternatives which are timely because they produce healthy yield and total return.
XAI is seeking partnerships with institutional-caliber, alternative managers. A partnership with XAI allows managers to benefit from XAI's expertise in product development, fund management, marketing and distribution. "It allows them to stay focused on managing institutional money and it doesn't require them to spend time on things that they are not currently doing," she says. She continues by saying that a partnership provides "speed to market and you don't have to have a sales and marketing arm or capability to do it."
Financial Times FundFire Alts Magazine Explores Growing Market for Alts Funds for Advisors
The Financial Times FundFire Alts Magazine's recent article, "Blackstone Joins Rush of New Alts Funds for Advisors" discusses the rapid product development in active non-traded alternative registered funds. Please click here for the article.
Hank Hakewill – Senior Advisor, Marketing & Communications, contributed to the article.
Among his comments regarding trends in alternatives fund product development, Mr. Hakewill noted that "a lot of the large alternative firms like Blackstone and Apollo know that the institutional marketplace isn't growing as much – it's a market share game where you get assets by stealing from someone else. But the individual investor marketplace is still growing."
Mr. Hakewill added that it can be a long road for fund sponsors hoping to tap into the advisor market to grow assets, especially if the product effort is not well thought out. "We see a lot of watered-down private fund strategies, 'me-too' portfolios, funds with a lack of transparency, high fees – a lot of issues," according to Hakewill.
"The winners will be firms that know the hardest work is at the outset in a market where advisors still need education about adding alts to high-net-worth investor portfolios and help on how to convince their clients these funds are right for them", Hakewill says.
The article also mentions that XA Investments recently launched a private credit closed-end fund sub-advised by Octagon Credit Investors by developing education materials for advisors on ALTs and CLOs.
"It takes time," Hakewill says. "You need to have a persuasive story."
Bloomberg reports on the Launch of the XAI Octagon Floating Rate & Alternative Income Term Trust (XFLT)
Bloomberg's article, "It Just Got Easier for Mom and Pop to Invest in the CLO Boom" covers the launch and listing of XFLT on the New York Stock Exchange. XA Investments' new alternative closed-end fund, XFLT, will buy collateralized loan obligations (CLOs), further opening access to retail investors to the securities that have been one of the engines driving debt markets recently.
Kimberly Flynn – Managing Director, Alternative Investments, was interviewed by reporter Sally Bakewell.
Demand for CLOs has increased as investors seek higher-yielding assets. Ms. Flynn says, "Retail investors face a low return environment and CLOs offer access to the potential for higher floating-rate income and attractive total returns over time."
Demand for CLOs is also surging because they offer protection against tighter U.S. monetary policy, with both their underlying loans and rated debt tracking interest rates, meaning cash flows from the securities increase as borrowing costs rise. "Because they are less liquid, they pay a so-called liquidity premium," added Ms. Flynn.
XAI Octagon Floating Rate & Alternative Income Term Trust (XFLT) Prices Initial Public Offering
Chicago, IL, September 27, 2017 – XA Investments ("XAI") announces that XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has priced its successful initial public offering. The Trust seeks attractive total return with an emphasis on income generation across multiple stages of the credit cycle by investing in a dynamically managed portfolio of opportunities primarily within the corporate credit markets. Under normal market conditions, the Trust will invest 80% of its managed assets in floating rate credit instruments and other structured credit investments (including CLO debt and CLO equity). The Trust will begin trading on the New York Stock Exchange (NYSE) today, under the symbol XFLT. For further information regarding the Trust, please visit www.xainvestments.com.
The Trust raised approximately $72.5 million (before deduction of the sales load and offering expenses payable by the Trust) in its common share offering, excluding any exercise of the underwriters' option to purchase additional shares. If the underwriters exercise that option in full, the Trust will have raised approximately $83.4 million (before deduction of the sales load and offering expenses payable by the Trust). The offering is scheduled to close on September 29, 2017, subject to customary closing conditions.
XAI, an affiliate of XMS Capital Partners, LLC ("XMS"), is the Trust's investment adviser and Octagon Credit Investors, LLC ("Octagon") is the Trust's sub-adviser. As sub-adviser to the Trust, Octagon will be responsible for management of the Trust's portfolio. With $16.7 billion in assets under management (as of August 31, 2017), Octagon brings an experienced team of investment professionals and a 23-year track record to the management of the Trust.
"We believe that floating rate bank loans and structured credit present compelling opportunities in today's environment, and look forward to bringing Octagon's institutional investment expertise in managing below investment grade credit to a new base of investors," said Lauren Basmadjian, Portfolio Manager, who will be responsible for managing the Trust on behalf of Octagon.
"XFLT is the first of a series of distinctive, demand-driven alternative investment opportunities designed by XAI to provide investors access to institutional quality investment strategies managed by an industry recognized sub-adviser to achieve attractive portfolio outcomes," said Ted Brombach, Co-Chief Executive Officer of XAI and co-founding partner of XMS, XAI's parent company.
The lead manager of the underwriting syndicate was UBS Investment Bank.
About XA Investments
XAI is a Chicago-based firm founded by XMS in April, 2016. XAI believes that the
investing public can benefit from new vehicles to access a broad range of alternative
investment strategies and managers. XAI provides investors with access to alternative
managers previously only available to institutional investors. It will partner with
established asset managers with proven capabilities in alternative credit, private debt and
select hedge fund strategies.
About Octagon Credit Investors
Octagon is a 20+ year old, $16.7 billion below-investment grade corporate credit
investment adviser based in New York. Octagon focuses on leveraged loans, high yield bonds
and structured credit.
Through fundamental credit analysis and active portfolio management, Octagon's investment team identifies attractive relative value opportunities across below-investment grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology encourage and rely upon dynamic internal communication to manage portfolio risk.
Over its history, the firm has applied a disciplined, repeatable and scalable approach in its effort to generate attractive risk-adjusted returns to its investors. For more information, please visit www.octagoncredit.com.
About XMS Capital Partners
XMS, established in 2006, is a global, independent, financial services firm providing
M&A, corporate advisory and asset management services to clients. It has offices in
Chicago, London and Dublin.
XMS provides Involvement BankingTM, which goes beyond transaction oriented investment banking and focuses on delivering objective, value added advice and custom tailored solutions to help clients achieve their strategic goals. It consistently creates value for its clients by giving them access to comprehensive, independent M&A, strategic advisory, financial restructuring, capital structure advisory and private capital advisory expertise.
All XMS engagements are led by senior investment bankers who average over 25 years of industry experience. Importantly, the combination of their extensive experience, technical expertise and "client first" orientation has served as a solid foundation of the firm since its formation in 2006. XMS is a FINRA member and SIPC member. For more information, please visit www.xmscapital.com.
The Trust is a newly-organized, diversified, closed-end management investment company with no history of operation. Shares of closed-end investment companies frequently trade at a discount from their net asset value. The risk of loss due to this discount may be greater for investors who expect to sell their shares in a relatively short period after completion of the offering.
Consider the investment objective, risks, charges and expenses of the Trust carefully before investing. An investment in the Trust involves risks and is not appropriate for all investors and is not intended to be a complete investment program. The prospectus contains this and other relevant information. Please read the prospectus carefully before investing. For a summary of the risks associated with an investment in the Trust please see the "Risks" section of the preliminary prospectus.
This document is not an offer to sell securities and is not a solicitation of an offer to buy securities, nor will there be any sales of securities in any jurisdiction where the offer or sale is not permitted.
An investment in the Trust involves risk, including loss of principal.
Shares of closed-end investment companies, like the Trust, usually trade on a national stock exchange. Similar to stocks, the Trust's share price will fluctuate with market conditions and, at the time of sale, may be worth more or less than the original investment. Shares of closed-end funds often trade at a discount to their net asset value.
Media Contact:
Hank Hakewill, Hakewill & Associates
Phone: 847-256-5420 (office); 847-714-6561 (cell)
Email: hankhake@yahoo.com
XA Investments Discusses Non-Traded Alternatives Funds with Financial Times FundFire Alts Magazine
The Financial Times FundFire Alts Magazine's article, "Managers Rush Market with Cheaper Alts Funds For Advisors" discusses recent trends in non-listed closed-end alts fund product development. Please click here for the article.
Kimberly Flynn – Managing Director, Alternative Investments, XA Investments contributed to the article written by Tom Stabile.
Among XA lnvestments' comments on the growth in the non-listed closed-end fund market, Ms. Flynn noted that institutional alts managers and mutual fund powerhouses are moving into the interval fund market. "They're looking for ways to continue raising money in active management where the margins are still attractive," she said.
FundFire Alts describes that this marks the beginning of a big trend in alternative product development where fund sponsors are looking for ways to expand the distribution channel for individual investors.
There are important differences between the two types of non-listed closed-end funds – the tender offer fund and the interval fund. Not everyone sees interval funds becoming the first choice of fund sponsors. Ms. Flynn said "interval funds are designed largely to remain as non-traded entities, requiring repurchase policies to allow investors to find liquidity, while tender offer funds can more easily change their registration to become a traded fund and provide investors with an exit."
XA Investments recently published a white paper on the topic of liquidity premiums and provides financial advisors with insights they should consider when investing in less liquid alternatives. The paper highlights how advances in product design have preserved the integrity of institutional caliber alternatives and made them accessible to a broader range of individual investors.
View the white paper here.
XA Investments Announces Commencement of Initial Public Offering of XAI Octagon Floating Rate & Alternative Income Term Trust (XFLT)
Chicago, IL, September 5, 2017 – XA Investments LLC ("XAI"), a new investment advisory firm dedicated to providing innovative alternative investment strategies for individual investors, today announced the commencement of the initial public offering of its first closed-end fund, XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust"). The Trust seeks attractive total return with an emphasis on income generation across multiple stages of the credit cycle by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest primarily in floating rate credit instruments and other structured credit investments.
As sub-adviser to the Trust, Octagon Credit Investors, LLC ("Octagon") will be responsible for management of the Trust's portfolio. With $16 billion in assets under management (as of June 30, 2017), Octagon brings an experienced team of investment professionals and a 23-year track record to the management of the Trust.
"XFLT is the first of a series of distinctive, demand-driven alternative investment opportunities designed by XAI to provide investors access to institutional quality investment strategies managed by an industry recognized sub-adviser to achieve attractive portfolio outcomes," said Ted Brombach, Co-Chief Executive Officer of XAI and co-founding partner of XMS Capital Partners, LLC ("XMS"), XAI's parent company.
"XFLT offers several important benefits to investors – access to an institutional alternative credit strategy that seeks opportunities to generate higher levels of monthly income, diversification from stocks and bonds, no performance fees, exchange-traded liquidity, transferability between accounts and firms, a simple 1099 tax form and a floating rate strategy that limits interest rate sensitivity," added John "Yogi" Spence, Co-Chief Executive Officer of XAI and co-founding partner of XMS.
The Trust is registered under the Investment Company Act of 1940, as amended, and will offer its shares on a limited basis from September 5 until September 26, 2017. The Trust's common shares have been approved for listing on the New York Stock Exchange, subject to notice of issuance, under the trading or "ticker" symbol "XFLT." For further information regarding the Trust, please visit www.xainvestments.com.
About XA Investments
XAI is a Chicago-based firm founded by XMS in April, 2016. XAI believes that the investing
public can benefit from new vehicles to access a broad range of alternative investment
strategies and managers. XAI provides investors with access to alternative managers
previously only available to institutional investors. It will partner with established asset
managers with proven capabilities in alternative credit, private debt and select hedge fund
strategies.
About XMS
XMS, established in 2006, is a global, independent, financial services firm providing
M&A, corporate advisory and asset management services to clients. It has offices in
Chicago, London and Dublin. XMS provides Involvement Banking™, which goes beyond transaction
oriented investment banking and focuses on delivering objective, value-added advice and
custom-tailored solutions to help clients achieve their strategic goals. It consistently
creates value for its clients by giving them access to comprehensive, independent M&A,
strategic advisory, financial restructuring, capital structure advisory and private capital
advisory expertise. All XMS engagements are led by senior investment bankers who average
over 25 years of industry experience. XMS is a FINRA member and SIPC member. For more
information, please visit www.xmscapital.com.
About Octagon
Octagon is a 23-year old investment adviser based out of New York that manages $16.0 billion
in assets (as of 6/30/17) while specializing in below-investment grade corporate credit.
Octagon focuses on leveraged loans, high yield bonds and structured credit. Through
fundamental credit analysis and active portfolio management, Octagon's investment team
identifies attractive relative value opportunities across below-investment grade asset
classes, sectors and issuers. Octagon's investment philosophy and methodology encourage and
rely upon dynamic internal communication to manage portfolio risk. Throughout its history,
Octagon has applied a disciplined, repeatable and scalable approach in its effort to
generate attractive risk-adjusted returns to its investors.
The Trust is a newly-organized, diversified, closed-end management investment company with no history of operation. Shares of closed-end investment companies frequently trade at a discount from their net asset value. The risk of loss due to this discount may be greater for investors who expect to sell their shares in a relatively short period after completion of the offering.
A registration statement relating to the shares of the Trust has been filed with the Securities and Exchange Commission, but is not yet effective. The shares may not be sold until the registration statement is effective. This is not an offer to sell these shares and is not soliciting an offer to buy these shares 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.
Consider the investment objective, risks, charges and expenses of the Trust carefully before investing. An investment in the Trust involves risks and is not appropriate for all investors and is not intended to be a complete investment program. The preliminary prospectus contains this and other relevant information. Please read the preliminary prospectus carefully before investing. For a summary of the risks associated with an investment in the Trust please see the "Risks" section of the preliminary prospectus.
This document is not an offer to sell securities and is not a solicitation of an offer to buy securities, nor will there be any sales of securities in any jurisdiction where the offer or sale is not permitted.
An investment in the Trust involves risk, including loss of principal. Past performance is no guarantee of future results.
This material may include statements that constitute "forward-looking statements" under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates and information about possible or future results related to the Trust, market or regulatory developments. The views expressed herein are for informational purposes only and are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed herein are subject to change at any time based upon economic, market, or other conditions and the Trust undertakes no obligation to update the views expressed herein. While this information is gathered from sources believed to be reliable, the Trust cannot guarantee the accuracy of the information provided. The views expressed herein do not constitute a recommendation to buy, sell or hold any security. The views expressed herein (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Trust's trading intent.
Media Contact:
Hank Hakewill, Hakewill & Associates
Phone: 847-256-5420 (office); 847-714-6561 (cell)
Email: hankhake@yahoo.com
XA Investments Comments on Rising Popularity of Interval Funds in The Wall Street Journal
Simon Constable of The Wall Street Journal recently described the growing trend in product development in an article entitled, "What are Interval Funds?".
Constable writes that interval funds typically invest in alternatives such as farmland and timberland which are not only illiquid but difficult for the individual investor to access. Research states that increased demand for these strategies will result in a fair amount of growth and that interval funds may be beneficiaries.
XA Investments' Kimberly Flynn – Managing Director, Alternative Investments contributed to the article and emphasized that illiquid alternatives do not fit in mutual fund or ETF structures.
Ms. Flynn also noted that "What retail investors now hold is largely a portfolio of passive exchange-traded funds so the alternative-assets domain is how the adviser will add value to the client."
XA Investments recently published a white paper on the topic of liquidity premiums and provides financial advisors with insights they should consider when investing in less liquid alternatives. The paper highlights how advances in product design have preserved the integrity of institutional caliber alternatives and made them accessible to a broader range of individual investors.
View the white paper here.
XA Investments Discusses Private Equity with Financial Times FundFire Alts Magazine
The Financial Times FundFire Alts Magazine's recent article, "Private Equity Embraces Shift in Alts Sales to Advisors" addresses product development in private equity. Please click here for the article.
Bob Kuppenheimer – XA Investments' Senior Advisor for Sales and Marketing, and Kimberly Flynn – Managing Director, Alternative Investments, both contributed to the article.
Among XA lnvestments' comments regarding trends in wealth management and use of alternatives by financial advisors, Mr. Kuppenheimer notes: "We recently went to a big firm whose objective was to get clients to 15% in alternatives, and right now they're at 3%. Moving the needle is very hard."
Ms. Flynn says, "The flood of product development into other fund structures that don't present the same liquidity, fee, and operational concerns is only likely to continue, not only as a way to offset distribution challenges but also to aim for a wider advisor audience. These firms don't need to change the [institutional private fund] structure to move the needle on asset allocation. You have to design products with advisors' business models in mind. The end game could be better for advisors, especially as more traditional investments shift to passive strategies, as they can take a greater role being the client's pathway to a range of alternatives. This whole move to alts reinforces the proposition of the human financial advisor."
XA Investments recently published a white paper on the topic of liquidity premiums and provides financial advisors with insights they should consider when investing in less liquid alternatives. The paper highlights how advances in product design have preserved the integrity of institutional caliber alternatives and made them accessible to a broader range of individual investors.
View the white paper here.
XA Investments Comments on Alternative Income Opportunities in Financial Times FundFire Alts Magazine
In a recent article entitled, "Bain, Ares Moves Stoke Alts Fund Arms Race," the Financial Times FundFire Alts describes a new wave of products and partnerships in the increasingly active non-traded registered fund marketplace. The article is available here.
Kimberly Flynn – Managing Director, Alternative Investments at XA Investments was interviewed for the article.
Tom Stabile, Associate Managing Editor for FundFire Alts, describes the proliferation of alternative product developed by established firms such as Bain Capital, Ares Management, Blackstone, Apollo, KKR and Carlyle Group. He highlights the growing advisor interest in alternatives and how it is driving private fund manager's expansion into registered funds such as non-traded BDCs and interval funds. These non-traded vehicles allow private fund shops to adhere to their style of investing and invest in illiquid assets.
Among XA lnvestments' comments regarding the trends in product development, Ms. Flynn describes the common search for income "With all of these – BDCs, interval funds, REITs – you're looking for alternative income, diversifying sources of income, just more income."
Ms. Flynn commented on the wave of product innovation and experimentation saying, "The theme is bringing together 1940 Act Investment Company Act expertise and private fund expertise, and applying new ways of approaching the market. A lot of closed-end fund lawyers are out there testing the limits of '40 Act structures with alternative strategies."
XA Investments recently published a white paper on the topic of liquidity premiums and provides financial advisors with insights they should consider when investing in less liquid alternatives. The paper highlights how advances in product design have preserved the integrity of institutional caliber alternatives and made them accessible to a broader range of individual investors.
View the white paper here.
XA Investments Discusses Growth in Independent Channel with Financial Times FundFire Alts Magazine
The Financial Times FundFire Alts recently published an article describing the expansion of large private equity firms into the independent brokerage market. The article, "Blackstone Bounds into Indie Advisor Market" is available here.
Product lineups are expanding and there is a wider menu of alternative options launched by big-name players in the market such as Blackstone, Carlyle, Bain and Apollo. These firms have recently developed products such as REITs, BDCs, CEFs. Blackstone has specifically focused on creating products that are custom-built for retail investors.
XA Investments' Kimberly Flynn – Managing Director, Alternative Investments, and Hank Hakewill – Senior Advisor for Marketing & Communications both contributed to the article.
FundFire Alts mentions that new players are developing products, such as Chicago's XA Investments, which has built a platform of registered closed-end funds by partnering with established alternative asset managers or subadvisers. Ms. Flynn, a former Nuveen Investment executive who launched the business last year says the target audience is both the independent channel as well as the wirehouses, where firms like Blackstone are helping to crack open demand for these products.
Ms. Flynn describes that "Our focus is institutional managers that don't want to alter their strategies and will rely on us to build relationships with retail distribution channels."
Ms. Flynn is also quoted saying that "Many firms have outsourced their sales and market resources in the independent broker dealer and RIA markets, but for quality control, the Blackstones and Carlyles and Apollos may want to do it for themselves." Fund managers also need to make sure they have enough product for the sales team to bring to the market, Flynn says. "First is the getting-going problem, but then you need some breadth so you're offering more than one thing."
Mr. Hakewill notes that private fund managers will also have to be vigilant when marketing to different channels, and ensure they don't produce conflicting messages that dilute their brand or edge. "You have to be careful. Blackstone and Apollo have such strong franchises in the institutional marketplace. Whatever marketing they do in the independent broker-dealer or retail market needs to be consistent with the overall positioning of the firm."
XMS Capital Partners Launches XA Investments
XA INVESTMENTS HIRES SEASONED PRODUCT DEVELOPMENT PROFESSIONALS TO BUILD PLATFORM
Chicago, IL (May 11, 2016) – XMS Capital Partners, LLC (XMS), a leading Midwest boutique investment bank, has announced the launch of XA Investments LLC (XAI) to provide innovative solutions to the asset management industry.
The firm has hired Kimberly Flynn as Managing Director of Alternative Investments and John McGarrity as Managing Director and General Counsel to build the XA Investments business. Kim joins the firm from Nuveen Investments where she served as the Head of Product Development for the Global Structured Products Group which is responsible for the development and management of the firm's closed-end fund complex. John joins the firm from River Branch Holdings, where he served as Managing Director and General Counsel, and prior to that was Head of Product Development for Man Investments, Inc. and a Partner at Sidley Austin LLP.
XAI is a new Chicago-based firm focused on building a platform in the registered funds space for alternative investments. The XA Investments leadership team believes that the investing public needs better access to a broader range of alternative investment strategies and managers, historically available only to institutions and ultra-high net worth investors.
"The growth of our business, with the addition of XA Investments, further strengthens and diversifies the XMS business. As we celebrate our 10th anniversary this year, the development of XA Investments is a natural step in the progression of our firm and positions us well for the future," said Ted Brombach, Founding Partner of XMS and co-CEO of XA Investments.
XAI is focused on innovation in the asset management industry and is planning to improve product structure, fee arrangements, and channel distribution with an alternative product platform. These innovations will make alternative investments more accessible to the investing public.
About XA Investments: XA Investments is a Delaware Limited Liability Corporation and was founded in April 2016 in Chicago by the principals of XMS Capital Partners. www.xainvestments.com
About XMS Capital Partners: XMS Capital Partners is a boutique investment bank and was founded in August 2006 by a core group of senior investment bankers formerly with Morgan Stanley. The firm specializes in M&A advisory, capital markets advisory, capital raising and restructuring. XMS is headquartered in Chicago with international offices in London and Dublin. The firm holds a core belief that clients value committed, independent investment banking relationships over transactional focus. XMS has a long-term, relationship based approach to serving clients which it calls "Involvement Banking™". XMS Capital Partners, LLC is a FINRA member and SIPC member. For more information, visit the company website at www.xmscapital.com.
Media Contacts:
If you are a member of the news media and have questions about a recent announcement, would like to request an interview or need additional information, please contact a member of the XA Investments team.
Kimberly Flynn
312-262-5642
KFlynn@XAInvestments.com
For non-media inquiries, please visit www.xainvestments.com or send an email to info@XAInvestments.com
FundFire Alts Discusses Renewed Interest in Liquidity Marketplace for Non-Listed Products
In a recent article, Tom Stabile of FundFire Alts discusses how last year’s redemption wave in less liquid alternative investment strategies has renewed interest in external platforms that provide liquidity for investors looking to exit non-listed products like interval funds, BDCs, and real estate investment trusts (REITs).
Lodas Markets' secondary sales marketplace and Nasdaq's auction fund platform have emerged as notable players in this space. Nasdaq's platform gained regulatory approval in 2017 for secondary trading of registered alternative products, but due to limited demand, major auction sales have yet to occur.
Kimberly Flynn, Managing Director at XA Investments, noted that the market for liquidity through these platforms remains largely conceptual and cautioned against overselling their liquidity features, which might lead investors to believe in a false sense of liquidity in the underlying non-listed products.
To read the full article, please click here.
For more information on liquidity and the benefits of the closed-end fund structure, please read our white paper here or contact us at info@xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Common Shares Distribution of $0.085 per Share
September 1, 2023, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust (the “Trust”) has declared its regular monthly distribution of $0.085 per share on the Trust’s common shares (NYSE: XFLT), payable on October 2, 2023, to common shareholders of record as of September 15, 2023, as noted below. The amount of the distribution represents no change from the previous month's distribution amount of $0.085 per share.
The following dates apply to the declaration:
Ex-Dividend Date | September 14, 2023 | |
Record Date | September 15, 2023 | |
Payable Date | October 2, 2023 | |
Amount | $0.085 per common share | |
Change from Previous Month | No change |
Common share distributions may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust’s common shareholders on Form 1099 after the end of the 2023 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust’s distributions, please visit www.xainvestments.com.
The Trust’s net investment income and capital gain can vary significantly over time; however, the Trust seeks to maintain more stable common share monthly distributions over time. The Trust’s investments in CLOs are subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States (“U.S. GAAP”), and, as a result, there may be significant differences between the Trust’s GAAP income and its taxable income. The Trust’s final taxable income for the current fiscal year will not be known until the Trust’s tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute to common shareholders by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Trust’s fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The common share distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder’s tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder’s potential gain, or reduce the common shareholder’s potential loss, on any subsequent sale or other disposition of common shares.
The distribution shall be paid on the Payment Date unless the payment of such distribution is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern, or to comply with the applicable terms or financial covenants of the Trust’s senior securities.
Future common share distributions will be made if and when declared by the Trust’s Board of Trustees, based on a consideration of number of factors, including the Trust’s continued compliance with terms and financial covenants of its senior securities, the Trust’s net investment income, financial performance and available cash. There can be no assurance that the amount or timing of common share distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of common share distributions in the future.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust’s common shares are traded on the New York Stock Exchange under the symbol “XFLT,” and the Trust’s 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol “XFLTPRA”.
About XA Investments
XA Investments LLC (“XAI”) serves as the Trust’s investment adviser. XAI is a Chicago-based
firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory
services,
the firm also provides investment fund structuring and consulting services focused on
registered
closed-end funds to meet institutional client needs. XAI offers custom product build and
consulting services, including development and market research, sales, marketing, fund
management and administration. XAI believes that the investing public can benefit from new
vehicles to access a broad range of alternative investment strategies and managers. XAI
provides individual investors with access to institutional-caliber alternative managers. For
more
information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services
firm
providing M&A, corporate advisory and asset management services to clients. It has offices
in
Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC (“Octagon”) serves as the Trust’s investment sub-adviser.
Octagon is a 25+ year old, $34.5B below-investment grade corporate credit investment adviser
focused on leveraged loan, high yield bond and structured credit (CLO debt and equity)
investments. Through fundamental credit analysis and active portfolio management, Octagon’s
investment team identifies attractive relative value opportunities across below-investment
grade
asset classes, sectors and issuers. Octagon’s investment philosophy and methodology
encourage and rely upon dynamic internal communication to manage portfolio risk. Over its
history, the firm has applied a disciplined, repeatable and scalable approach in its effort
to
generate attractive risk-adjusted returns for its investors. For more information, please
visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust’s webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE |
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
Institutional Investment Consultant Enters the Interval Fund Market, Ignites
In her recent article, Alyson Velati of Ignites discusses the growing trend of institutional investment consultants entering the interval fund market. One such firm, Meketa Investment Group, is set to launch its first proprietary interval fund, joining other notable players Cliffwater and Stepstone Group.
Meketa has recently established a registered advisor, Meketa Capital, to launch its fund – the Meketa Infrastructure Fund. The fund will primarily invest in infrastructure assets, constituting at least 80% of its net assets. The day-to-day management of the fund will be overseen by key Meketa personnel.
The fund will strategically focus on infrastructure investments, which according to Kimberly Flynn of XA Investments, are currently a “white space” in the interval fund market.
Growth in interval fund assets is expected to continue, driven by increasing interest from various financial institutions and asset managers for strategic asset growth and exposure to alternative investments, including collateralized loan obligations, structured notes, artwork, and private credit.
For more insights on the interval fund market, or for more information on launching an interval fund, please contact info@xainvestments.com
New Interval Fund Launch Emphasizes Trend of Strategic Acquisitions, Ignites
In her recent article, Alyson Velati of Ignites highlights an increasingly common trend of new interval fund sponsors coming to market through the acquisition of existing funds. The latest example of this trend is Polen Capital's acquisition of DDJ Capital Management and the subsequent launch of the Polen Credit Opportunities Fund.
Diffractive Managers Group is also in the process of launching its first interval fund after acquiring Conservation Resource Partners. Firms might strategically acquire smaller fund managers for their expertise and investment strategies, enabling them to diversify their product offerings and provide investors with access to new strategies.
Kimberly Flynn, Managing Director at XA Investments, notes that fund sponsors are motivated by M&A synergies and market opportunities. With interval fund assets expected to grow substantially, managers may continue to grow via strategic acquisitions to meet investor demand and expand market presence.
To learn more about current market dynamics impacting the interval fund market, or for help launching a fund, please contact info@xainvestments.com
FundFire Alts Discusses Performance Track Records in Non-listed Registered Funds Market
In Tom Stabile’s recent article, he examines whether investment managers in the non-listed registered funds market are increasingly relying on mutual fund-style three- and five-year performance track records to attract capital. While earlier success in the market was driven by manager brand names and broader historical results, recent evidence suggests a growing preference for managers with established track records. In discussing this trend, Kimberly Flynn, Managing Director at XA Investments, notes that "…the market is moving in that direction, the mutual fund mentality where you seed it and if you put up good three-year numbers, you put good marketing dollars behind it."
In contributing to the article, XA Investments provided research that indicates that the leaders in flows and assets under management in 2023 favor managers with proven track records. The article suggests that as the non-listed registered fund market evolves, advisors are likely to apply the same metrics used in mutual fund due diligence, emphasizing the importance of manager track records and value-added service.
SEC's Potential Update to Accredited Investor Definition Sparks Concern in Non-Listed Alts Market
Ben McCulloch, General Counsel at XA Investments, spoke with Tom Stabile of FundFire Alts to discuss the impact of changing the definition of accredited investor. Stabile’s article examines how alternative investment managers might experience disruptions should the SEC implement tighter restrictions for accredited investors. The SEC reviews the definition every four years, which determines who can invest in certain securities, including many non-listed alts products. While the SEC hasn't revealed its plans, it could make changes with little notice. The current SEC, led by Chair Gary Gensler, has developed a reputation for its aggressive approach to rulemaking..
The primary concern for managers is the possibility that the SEC might index accredited investor income levels to inflation, which would adjust current limits upwards from as far back as 1982, the year in which the SEC first established such limits. This change could lead to the exclusion of approximately half of the current accredited investor market.
Mr. McCulloch underscores the effect such a change would have, noting that changes to the definition would impact a broader range of investment managers today than in the past. Sales of non-listed interval funds hit record levels last year, and any updates to the definition would likely entail significant adjustment to current business plans for investment managers.
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Common Shares Distribution and Quarterly Preferred Shares Dividend
October 2, 2023, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust (the “Trust”) has declared its regular monthly distribution of $0.085 per share of the Trust’s common shares (NYSE: XFLT). The Trust also declared preferred dividends for the quarter of $0.40625 per share of the Trust’s 6.50% Series 2026 Term Preferred Shares (NYSE: XFLTPRA).
The following dates apply to each declaration:
Share Class | Ex-Dividend Date | Record Date | Payable Date | Amount | Change from Previous Declaration |
---|---|---|---|---|---|
XFLT | October 13, 2023 | October 16, 2023 | November 1, 2023 | $0.085 | No Change |
XFLTPRA | October 13, 2023 | October 16, 2023 | October 31, 2023 | $0.40625 | No Change1 |
1 The Trust’s 6.50% Series 2026 Term Preferred Shares dividend is calculated based on the preferred shares Liquidation Preference of $25.00 per share and the fixed dividend rate of 6.50%.
Common share distributions may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust’s common shareholders on Form 1099 after the end of the 2023 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust’s distributions, please visit www.xainvestments.com.
The Trust’s net investment income and capital gain can vary significantly over time; however, the Trust seeks to maintain more stable common share monthly distributions over time. The Trust’s investments in CLOs are subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States (“U.S. GAAP”), and, as a result, there may be significant differences between the Trust’s GAAP income and its taxable income. The Trust’s final taxable income for the current fiscal year will not be known until the Trust’s tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute to common shareholders by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on January 31 of the calendar year (unless an election is made to use the Trust’s fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The common share distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder’s tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder’s potential gain, or reduce the common shareholder’s potential loss, on any subsequent sale or other disposition of common shares.
Preferred shareholders are entitled to receive cumulative cash dividends and distributions on the Trust’s 6.50% Series 2026 Term Preferred Shares, when, as and if declared by, or under authority granted by, the Board of Trustees of the Trust out of funds legally available for distribution and in preference to dividends and distributions on common shares. If the Trust is unable to distribute the full dividend amount due in a dividend period on the Trust’s 6.50% Series 2026 Term Preferred Shares, the dividends will be distributed on a pro rata basis among the preferred shareholders.
Distributions and dividends shall be paid on the Payable Date listed above unless the payment of such distribution or dividend is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law, to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern or, with regard to the Trust’s regular monthly distribution to common shareholders, to comply with the applicable terms or financial covenants of the Trust’s senior securities.
Future common share distributions will be made if and when declared by the Trust’s Board of Trustees, based on a consideration of number of factors, including the Trust’s continued compliance with terms and financial covenants of its senior securities, the Trust’s net investment income, financial performance and available cash. There can be no assurance that the amount or timing of common share distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of common share distributions in the future.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust’s common shares are traded on the New York Stock Exchange under the symbol “XFLT,” and the Trust’s 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol “XFLTPRA.”
About XA Investments
XA Investments LLC (“XAI”) serves as the Trust’s investment adviser. XAI is a Chicago-based
firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory
services, the firm also provides investment fund structuring and consulting services focused
on registered closed-end funds to meet institutional client needs. XAI offers custom product
build and consulting services, including development and market research, sales, marketing,
fund management and administration. XAI believes that the investing public can benefit from
new vehicles to access a broad range of alternative investment strategies and managers. XAI
provides individual investors with access to institutional-caliber alternative managers. For
more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services
firm providing M&A, corporate advisory and asset management services to clients. It has
offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC (“Octagon”) serves as the Trust’s investment sub-adviser.
Octagon is a 25+ year old, $34.5B below-investment grade corporate credit investment adviser
focused on leveraged loan, high yield bond and structured credit (CLO debt and equity)
investments. Through fundamental credit analysis and active portfolio management, Octagon’s
investment team identifies attractive relative value opportunities across below-investment
grade asset classes, sectors and issuers. Octagon’s investment philosophy and methodology
encourage and rely upon dynamic internal communication to manage portfolio risk. Over its
history, the firm has applied a disciplined, repeatable and scalable approach in its effort
to generate attractive risk-adjusted returns for its investors. For more information, please
visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust’s webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE |
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Common Shares Distribution of $0.085 per Share
November 1, 2023, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust (the “Trust”) has declared its regular monthly distribution of $0.085 per share on the Trust’s common shares (NYSE: XFLT), payable on December 1, 2023, to common shareholders of record as of November 15, 2023, as noted below. The amount of the distribution represents no change from the previous month's distribution amount of $0.085 per share.
The following dates apply to the declaration:
Ex-Dividend Date | November 14, 2023 | |
Record Date | November 15, 2023 | |
Payable Date | December 1, 2023 | |
Amount | $0.085 per common share | |
Change from Previous Month | No change |
Common share distributions may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust’s common shareholders on Form 1099 after the end of the 2023 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust’s distributions, please visit www.xainvestments.com.
The Trust’s net investment income and capital gain can vary significantly over time; however, the Trust seeks to maintain more stable common share monthly distributions over time. The Trust’s investments in CLOs are subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States (“U.S. GAAP”), and, as a result, there may be significant differences between the Trust’s GAAP income and its taxable income. The Trust’s final taxable income for the current fiscal year will not be known until the Trust’s tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute to common shareholders by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Trust’s fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The common share distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder’s tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder’s potential gain, or reduce the common shareholder’s potential loss, on any subsequent sale or other disposition of common shares.
The distribution shall be paid on the Payment Date unless the payment of such distribution is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern, or to comply with the applicable terms or financial covenants of the Trust’s senior securities.
Future common share distributions will be made if and when declared by the Trust’s Board of Trustees, based on a consideration of number of factors, including the Trust’s continued compliance with terms and financial covenants of its senior securities, the Trust’s net investment income, financial performance and available cash. There can be no assurance that the amount or timing of common share distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of common share distributions in the future.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust’s common shares are traded on the New York Stock Exchange under the symbol “XFLT,” and the Trust’s 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol “XFLTPRA”.
About XA Investments
XA Investments LLC (“XAI”) serves as the Trust’s investment adviser. XAI is a Chicago-based
firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory
services,
the firm also provides investment fund structuring and consulting services focused on
registered
closed-end funds to meet institutional client needs. XAI offers custom product build and
consulting services, including development and market research, sales, marketing, fund
management and administration. XAI believes that the investing public can benefit from new
vehicles to access a broad range of alternative investment strategies and managers. XAI
provides individual investors with access to institutional-caliber alternative managers. For
more
information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services
firm
providing M&A, corporate advisory and asset management services to clients. It has offices
in
Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC (“Octagon”) serves as the Trust’s investment sub-adviser.
Octagon is a 25+ year old, $34.5B below-investment grade corporate credit investment adviser
focused on leveraged loan, high yield bond and structured credit (CLO debt and equity)
investments. Through fundamental credit analysis and active portfolio management, Octagon’s
investment team identifies attractive relative value opportunities across below-investment
grade
asset classes, sectors and issuers. Octagon’s investment philosophy and methodology
encourage and rely upon dynamic internal communication to manage portfolio risk. Over its
history, the firm has applied a disciplined, repeatable and scalable approach in its effort
to
generate attractive risk-adjusted returns for its investors. For more information, please
visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust’s webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE |
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
Ignites Examines the Rise of Private Credit, Discusses Potential Growth
In her recent article, Allison Velati of Ignites discusses the growth of credit assets in the non-listed closed-end fund market. Interest in credit strategies continues to rise, driven by increased investor demand and structural shifts in lending. Banks have implemented tighter lending standards, leading to fewer loan originations for middle-market borrowers. Investment managers have helped fill the gap through private lending strategies such as direct and asset-backed lending. Many investment managers have provided investors with access to these strategies through interval funds.
To serve the growing investor demand, Kimberly Flynn, Managing Director at XA Investments (“XAI”), expects managers to focus their efforts on the creation and distribution of private credit funds. Flynn notes, “both traditional asset managers and alternative investment boutiques are considering their product strategy for different wealth channels to reach individual investors and are planning to enter the interval fund marketplace in 2024.”
XAI anticipates continued growth in the non-listed closed-end fund market, largely supported by credit and other private market strategies. By year-end 2024, XAI forecasts 235 total funds and upwards of $180 billion in net assets.
For more information on the closed-end fund structure, or for help launching an interval fund, please contact us at info@xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Will Host Q3 2023 Quarterly Webinar on November 30, 2023
November 20, 2023, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust (NYSE: XFLT) (the “Trust”) today announced that it plans to host the Trust’s Quarterly Webinar on November 30, 2023 at 10:30 am (Eastern Time). Kimberly Flynn, Managing Director at XA Investments (“XAI”) will moderate the Q&A style webinar with Steven Perry, Vice President at XAI, and Gretchen Lam, Senior Portfolio Manager at Octagon Credit Investors.
TO JOIN VIA WEB: Please go to the Knowledge Bank section of xainvestments.com or click here to find the online registration link.
TO USE YOUR TELEPHONE: After joining via web, if you prefer to use your phone for audio, you must select that option and call in using a number below, based on your current location.
Dial: (312) 626-6799 or (267) 831-0333 or (646) 558-8656 or (213) 338-8477 or (720)
928-9299
Webinar ID: 828 2660 5257
Passcode: 004558
REPLAY: A replay of the webinar will be available in the Knowledge Bank section of xainvestments.com or through the same registration link previously used.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust’s common shares are traded on the New York Stock Exchange under the symbol “XFLT,” and the Trust’s 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol “XFLTPRA.”
About XA Investments
XA Investments LLC ("XAI") serves as the Trust's investment adviser. XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory services, the firm also provides investment fund structuring and consulting services focused on registered closed-end funds to meet institutional client needs. XAI offers custom product build and consulting services, including development and market research, sales, marketing, fund management and administration. XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. XAI provides individual investors with access to institutional-caliber alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services firm providing M&A, corporate advisory and asset management services to clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser. Octagon is a 25+ year old, $34.5B below-investment grade corporate credit investment adviser focused on leveraged loan, high yield bond and structured credit (CLO debt and equity) investments. Through fundamental credit analysis and active portfolio management, Octagon's investment team identifies attractive relative value opportunities across below-investment grade asset classes, sectors and issuers. Octagon's investment philosophy and methodology encourage and rely upon dynamic internal communication to manage portfolio risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach in its effort to generate attractive risk-adjusted returns for its investors. For more information, please visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust's webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
Media Contact:
Steven Perry, Vice President
XA Investments LLC
Phone: 312-374-6933
Email: SPerry@XAInvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Common Shares Distribution of $0.085 per Share
December 1, 2023, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust (the “Trust”) has declared its regular monthly distribution of $0.085 per share on the Trust’s common shares (NYSE: XFLT), payable on December 28, 2023, to common shareholders of record as of December 15, 2023, as noted below. The amount of the distribution represents no change from the previous month's distribution amount of $0.085 per share.
The following dates apply to the declaration:
Ex-Dividend Date | December 14, 2023 | |
Record Date | December 15, 2023 | |
Payable Date | December 28, 2023 | |
Amount | $0.085 per common share | |
Change from Previous Month | No change |
Common share distributions may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust’s common shareholders on Form 1099 after the end of the 2023 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust’s distributions, please visit www.xainvestments.com.
The Trust’s net investment income and capital gain can vary significantly over time; however, the Trust seeks to maintain more stable common share monthly distributions over time. The Trust’s investments in CLOs are subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States (“U.S. GAAP”), and, as a result, there may be significant differences between the Trust’s GAAP income and its taxable income. The Trust’s final taxable income for the current fiscal year will not be known until the Trust’s tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute to common shareholders by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Trust’s fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The common share distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder’s tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder’s potential gain, or reduce the common shareholder’s potential loss, on any subsequent sale or other disposition of common shares.
The distribution shall be paid on the Payment Date unless the payment of such distribution is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern, or to comply with the applicable terms or financial covenants of the Trust’s senior securities.
Future common share distributions will be made if and when declared by the Trust’s Board of Trustees, based on a consideration of number of factors, including the Trust’s continued compliance with terms and financial covenants of its senior securities, the Trust’s net investment income, financial performance and available cash. There can be no assurance that the amount or timing of common share distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of common share distributions in the future.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust’s common shares are traded on the New York Stock Exchange under the symbol “XFLT,” and the Trust’s 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol “XFLTPRA”.
About XA Investments
XA Investments LLC (“XAI”) serves as the Trust’s investment adviser. XAI is a Chicago-based
firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory
services,
the firm also provides investment fund structuring and consulting services focused on
registered
closed-end funds to meet institutional client needs. XAI offers custom product build and
consulting services, including development and market research, sales, marketing, fund
management and administration. XAI believes that the investing public can benefit from new
vehicles to access a broad range of alternative investment strategies and managers. XAI
provides individual investors with access to institutional-caliber alternative managers. For
more
information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services
firm
providing M&A, corporate advisory and asset management services to clients. It has offices
in
Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC (“Octagon”) serves as the Trust’s investment sub-adviser.
Octagon is a 25+ year old, $34.5B below-investment grade corporate credit investment adviser
focused on leveraged loan, high yield bond and structured credit (CLO debt and equity)
investments. Through fundamental credit analysis and active portfolio management, Octagon’s
investment team identifies attractive relative value opportunities across below-investment
grade
asset classes, sectors and issuers. Octagon’s investment philosophy and methodology
encourage and rely upon dynamic internal communication to manage portfolio risk. Over its
history, the firm has applied a disciplined, repeatable and scalable approach in its effort
to
generate attractive risk-adjusted returns for its investors. For more information, please
visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust’s webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE |
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Adjourns Special Meeting of Shareholders to Permit Further Solicitation of Proxies
CHICAGO, December 19, 2023 – XAI Octagon Floating Rate & Alternative Income Term Trust (the “Trust”) (NYSE: XFLT) announced today that its special meeting of shareholders (the “Special Meeting”) has been adjourned to January 24, 2024 at 10:00 a.m. Central time with respect to all proposals to allow more time for shareholders to vote.
At the Special Meeting, Trust shareholders are being asked (i) to approve a new investment sub-advisory agreement among the Trust, XA Investments LLC and Octagon Credit Investors, LLC (“Proposal 1”) and (ii) to approve an amendment to the Trust’s Agreement and Declaration of Trust to cause the Trust to become a perpetual fund by eliminating the requirement that it terminate operations on or about December 31, 2029, unless extended as permitted by the Declaration of Trust (“Proposal 2” and, together with Proposal 1, the “Proposals”).
The reconvened Special Meeting will be held at offices of the Trust’s investment adviser, XA Investments LLC, 321 North Clark Street, Suite 2430, Chicago, Illinois 60654.
The October 25, 2023 record date for shareholders entitled to vote at the adjourned Special Meeting remains unchanged. Information about the reconvened Special Meeting appears below.
At the time the Special Meeting was adjourned, proxies had been submitted by shareholders representing approximately 40.35% of the Trust’s shares outstanding and entitled to vote. At the time the Special Meeting was adjourned, approximately 92.66% of the votes cast on Proposal 1 were voted in favor of its approval, and approximately 92.08% of the votes cast on Proposal 2 were voted in favor of its approval.
During the adjournment, the Trust continues to solicit votes from its shareholders with respect to the Proposals. Proxies previously submitted with respect to the Special Meeting will be voted on the Proposals at the reconvened Special Meeting unless properly revoked in accordance with the procedures described in the Trust’s proxy statement, and shareholders who have previously submitted a proxy or otherwise voted need not take any action.
If, as of October 25, 2023, you were a Trust shareholder and have not yet voted, the Trust urges you to submit your vote in advance of the reconvened Special Meeting. Shareholders can vote by any of the following convenient methods:
Vote by phone with a representative: You may cast your vote by telephone with a proxy representative by calling toll-free (800) 431-9645. Representatives are available Monday through Friday, 9 a.m. to 10 p.m. Eastern time.
Vote by touch-tone phone: You may cast your vote by telephone using an automated system by calling the toll-free number found on your proxy card(s).
Vote online: You may cast your vote by visiting www.proxyvote.comand following the instructions on the website.
Vote by mail: You may cast your vote by signing, dating, and mailing the enclosed proxy card(s) in the postage-prepaid return envelope provided with your proxy materials
The Trust’s proxy statement is available online at https://vote.proxyonline.com/XAI/docs/proxy2023.pdf>.
Shareholders who have any proxy-related questions or would like to cast their vote by phone can call (800) 431-9645 for assistance. Representatives are available Monday through Friday, 9 a.m. to 10 p.m. Eastern time. Shareholders may also email votemyproxy@equiniti.com with any questions and a representative from the Trust’s proxy solicitor, EQ Fund Solutions, will contact you to answer your questions.
About XA Investments
XA Investments LLC (“XAI”) serves as the Trust’s investment adviser. XAI is a Chicago-based
firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory
services, the firm also provides investment fund structuring and consulting services focused
on registered closed-end funds to meet institutional client needs. XAI offers custom product
build and consulting services, including development and market research, sales, marketing,
fund management and administration. XAI believes that the investing public can benefit from
new vehicles to access a broad range of alternative investment strategies and managers. XAI
provides individual investors with access to institutional-caliber alternative managers. For
more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services
firm providing M&A, corporate advisory and asset management services to clients. It has
offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC (“Octagon”) serves as the Trust’s investment sub-adviser.
Octagon is a 29 year-old, $35B below-investment grade corporate credit investment adviser
focused on leveraged loan, high yield bond and structured credit (CLO debt and equity)
investments. Through fundamental credit analysis and active portfolio management, Octagon’s
investment team identifies attractive relative value opportunities across below-investment
grade asset classes, sectors, and issuers. Octagon’s investment philosophy and methodology
encourage and rely upon dynamic internal communication to manage portfolio risk. Over its
history, the firm has applied a disciplined, repeatable, and scalable approach in its effort
to generate attractive risk-adjusted returns for its investors. For more information, please
visit www.octagoncredit.com.
The Trust has filed a proxy statement related to the Special Meeting with the Securities and Exchange Commission (“SEC”). Because the proxy statement contains important information about the Proposals, the Trust’s shareholders are urged to read the proxy statement and accompanying materials carefully. Shareholders can obtain, free of charge, copies of these documents at the SEC’s website at www.sec.gov and can obtain copies by visiting https://vote.proxyonline.com/XAI/docs/proxy2023.pdf, calling (800) 431-9645, or by writing the Trust at 321 North Clark Street, Suite 2430, Chicago, Illinois 60654.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust’s webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
This press release contains certain statements that may include “forward-looking statements.” Forward-looking statements can be identified by the words “may,” “will,” “intend,” “expect,” “estimate,” “continue,” “plan,” “anticipate,” and similar terms and the negatives of such terms. By their nature, all forward-looking statements involve risks and uncertainties, and actual results could differ materially from those contemplated by the forward-looking statements. Many factors that could materially affect the Trust’s actual results are the performance of the portfolio of securities held by the Trust, the conditions in the U.S. and international financial and other markets, the price at which the Trust’s shares trade in the public markets and other factors discussed in the Trust’s annual and semi-annual reports filed with the SEC.
Although the Trust believes that the expectations expressed in such forward-looking statements are reasonable, actual results could differ materially from those expressed or implied in such forward-looking statements. The Trust’s future financial condition and results of operations, as well as any forward-looking statements, are subject to change and are subject to inherent risks and uncertainties. You are cautioned not to place undue reliance on these forward-looking statements, which are made as of the date of this press release. Except for the Trust’s ongoing obligations under the federal securities laws, the Trust does not intend, and the Trust undertakes no obligation, to update any forward-looking statement.
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE |
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Declares its Monthly Common Shares Distribution and Quarterly Preferred Shares Dividend
January 2, 2024, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust (the “Trust”) has declared its regular monthly distribution of $0.085 per share of the Trust’s common shares (NYSE: XFLT). The Trust also declared preferred dividends for the quarter of $0.40625 per share of the Trust’s 6.50% Series 2026 Term Preferred Shares (NYSE: XFLTPRA).
The following dates apply to each declaration:
Share Class | Ex-Dividend Date | Record Date | Payable Date | Amount | Change from Previous Declaration |
---|---|---|---|---|---|
XFLT | January 12, 2023 | January 16, 2023 | February 1, 2023 | $0.085 | No Change |
XFLTPRA | January 12, 2023 | January 16, 2023 | January 31, 2023 | $0.40625 | No Change1 |
1 The Trust’s 6.50% Series 2026 Term Preferred Shares dividend is calculated based on the preferred shares Liquidation Preference of $25.00 per share and the fixed dividend rate of 6.50%
Common share distributions may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust’s common shareholders on Form 1099 after the end of the 2023 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust’s distributions, please visit www.xainvestments.com.
The Trust’s net investment income and capital gain can vary significantly over time; however, the Trust seeks to maintain more stable common share monthly distributions over time. The Trust’s investments in CLOs are subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States (“U.S. GAAP”), and, as a result, there may be significant differences between the Trust’s GAAP income and its taxable income. The Trust’s final taxable income for the current fiscal year will not be known until the Trust’s tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute to common shareholders by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on January 31 of the calendar year (unless an election is made to use the Trust’s fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The common share distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder’s tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder’s potential gain, or reduce the common shareholder’s potential loss, on any subsequent sale or other disposition of common shares.
Preferred shareholders are entitled to receive cumulative cash dividends and distributions on the Trust’s 6.50% Series 2026 Term Preferred Shares, when, as and if declared by, or under authority granted by, the Board of Trustees of the Trust out of funds legally available for distribution and in preference to dividends and distributions on common shares. If the Trust is unable to distribute the full dividend amount due in a dividend period on the Trust’s 6.50% Series 2026 Term Preferred Shares, the dividends will be distributed on a pro rata basis among the preferred shareholders.
Distributions and dividends shall be paid on the Payable Date listed above unless the payment of such distribution or dividend is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law, to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern or, with regard to the Trust’s regular monthly distribution to common shareholders, to comply with the applicable terms or financial covenants of the Trust’s senior securities.
Future common share distributions will be made if and when declared by the Trust’s Board of Trustees, based on a consideration of number of factors, including the Trust’s continued compliance with terms and financial covenants of its senior securities, the Trust’s net investment income, financial performance and available cash. There can be no assurance that the amount or timing of common share distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of common share distributions in the future.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust’s common shares are traded on the New York Stock Exchange under the symbol “XFLT,” and the Trust’s 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol “XFLTPRA.”
About XA Investments
XA Investments LLC (“XAI”) serves as the Trust’s investment adviser. XAI is a Chicago-based
firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory
services, the firm also provides investment fund structuring and consulting services focused
on registered closed-end funds to meet institutional client needs. XAI offers custom product
build and consulting services, including development and market research, sales, marketing,
fund management and administration. XAI believes that the investing public can benefit from
new vehicles to access a broad range of alternative investment strategies and managers. XAI
provides individual investors with access to institutional-caliber alternative managers. For
more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services
firm providing M&A, corporate advisory and asset management services to clients. It has
offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC (“Octagon”) serves as the Trust’s investment sub-adviser.
Octagon is a 25+ year old, $34.5B below-investment grade corporate credit investment adviser
focused on leveraged loan, high yield bond and structured credit (CLO debt and equity)
investments. Through fundamental credit analysis and active portfolio management, Octagon’s
investment team identifies attractive relative value opportunities across below-investment
grade asset classes, sectors and issuers. Octagon’s investment philosophy and methodology
encourage and rely upon dynamic internal communication to manage portfolio risk. Over its
history, the firm has applied a disciplined, repeatable and scalable approach in its effort
to generate attractive risk-adjusted returns for its investors. For more information, please
visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust’s webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE |
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Trust Declares its Monthly Common Shares Distribution of $0.085 per Share
September 3, 2024, Chicago – XAI Octagon Floating Rate & Alternative Income Trust (the “Trust”) has declared its regular monthly distribution of $0.085 per share on the Trust’s common shares (NYSE: XFLT), payable on October 1, 2024, to common shareholders of record as of September 17, 2024, as noted below. The amount of the distribution represents no change from the previous month's distribution amount of $0.085 per share.
The following dates apply to the declaration:
Ex-Dividend Date September 17, 2024
Record Date September 17, 2024
Payable Date October 1, 2024
Amount $0.085 per common share
Change from Previous Month No change
Common share distributions may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust’s common shareholders on Form 1099 after the end of the 2024 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust’s distributions, please visit www.xainvestments.com.
The Trust’s net investment income and capital gain can vary significantly over time; however, the Trust seeks to maintain more stable common share monthly distributions over time. The Trust’s investments in CLOs are subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States (“U.S. GAAP”), and, as a result, there may be significant differences between the Trust’s GAAP income and its taxable income. The Trust’s final taxable income for the current fiscal year will not be known until the Trust’s tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute to common shareholders by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Trust’s fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The common share distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder’s tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder’s potential gain, or reduce the common shareholder’s potential loss, on any subsequent sale or other disposition of common shares.
The distribution shall be paid on the Payment Date unless the payment of such distribution is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern, or to comply with the applicable terms or financial covenants of the Trust’s senior securities.
Future common share distributions will be made if and when declared by the Trust’s Board of Trustees, based on a consideration of number of factors, including the Trust’s continued compliance with terms and financial covenants of its senior securities, the Trust’s net investment income, financial performance and available cash. There can be no assurance that the amount or timing of common share distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of common share distributions in the future.
* * *
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust’s common shares are traded on the New York Stock Exchange under the symbol “XFLT,” and the Trust’s 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol “XFLTPRA”.
About XA Investments
XA Investments LLC (“XAI”) serves as the Trust’s investment adviser. XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory services, the firm also provides investment fund structuring and consulting services focused on registered closed-end funds to meet institutional client needs. XAI offers custom product build and consulting services, including development and market research, sales, marketing, fund management and administration. XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. XAI provides individual investors with access to institutional-caliber alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services firm providing M&A, corporate advisory and asset management services to clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC (“Octagon”) serves as the Trust’s investment sub-adviser. Octagon is a 25+ year old, $34.0B below-investment grade corporate credit investment adviser focused on leveraged loan, high yield bond and structured credit (CLO debt and equity) investments. Through fundamental credit analysis and active portfolio management, Octagon’s investment team identifies attractive relative value opportunities across below-investment grade asset classes, sectors and issuers. Octagon’s investment philosophy and methodology encourage and rely upon dynamic internal communication to manage portfolio risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach in its effort to generate attractive risk-adjusted returns for its investors. For more information, please visit www.octagoncredit.com.
* * *
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust’s webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
Paralel Distributors, LLC - Distributor
* * *
Media Contact:
Kimberly Flynn, President
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
XA Investments to Become Investment Adviser to Madison Investments Closed-End Fund and Will Retain Madison Investments as Portfolio Manager
Reflects Increasing Investor Demand for Equity Income Funds
July 17, 2024 06:36 PM Eastern Daylight Time
CHICAGO--(BUSINESS WIRE)--XA Investments (XAI), an alternative investment management and consulting firm, announced the pending transaction, by which XAI will become investment adviser to the Madison Covered Call & Equity Strategy Fund (NYSE: MCN), a $146 million listed closed-end fund. The transaction is subject to approval by MCN shareholders. Notably, Madison Investments will maintain portfolio management responsibilities as sub-adviser to MCN, also subject to approval by MCN shareholders.
“I am pleased to welcome Madison Investments to the XAI closed-end fund platform”Post this
XAI is committed to providing investors with access to institutional-caliber investments. The acquisition would expand the number of closed-end funds currently on the XAI platform to three - XAI Octagon Floating Rate & Alternative Income Trust (NYSE: XFLT), Octagon XAI CLO Income Fund (OCTIX) and Madison Covered Call and Equity Strategy Fund. XAI continues to seek additional opportunities consistent with its mission of providing better products with better portfolio outcomes for investors.
Portfolio manager, Ray Di Bernardo, who has managed MCN for 20 years, said “We are excited to continue to deliver lower volatility and strong cash flows to our shareholders. Partnering with XAI will allow us to focus on investment management, ensuring that the best interests of MCN’s shareholders are upheld. It will enable Madison Investments to pursue its strategic growth priorities, including an investment lineup of separately managed accounts, open-end mutual funds, and active ETFs.”
“I am pleased to welcome Madison Investments to the XAI closed-end fund platform,” said Kimberly Flynn, President of XAI. I believe that XAI can deliver three primary benefits to the shareholders of the Madison Covered Call & Equity Strategy Fund: (1) superior growth in assets under management and scale efficiencies; (2) continuity of the existing portfolio management team; and (3) enhanced investor relations.”
As noted above, XAI’s appointment as investment adviser to MCN is subject to shareholder approval and is expected to occur in the fourth quarter of 2024.
About XA Investments
XA Investments LLC (“XAI”) is a Chicago-based firm founded by XMS Capital Partners in 2016. XAI serves as the investment adviser for both a listed closed-end fund and an interval closed-end fund, respectively the XAI Octagon Floating Rate & Alternative Income Trust (NYSE: XFLT) and the Octagon XAI CLO Income Fund (OCTIX).
In addition to investment advisory services, the firm also provides investment fund structuring and consulting services focused on registered closed-end funds to meet institutional client needs. XAI offers custom product build and consulting services, including product development and market research, sales, marketing and fund management.
XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. XAI provides individual investors with access to institutional-caliber alternative managers. For more information, please visit www.xainvestments.com.
About Madison Investments
Madison Investments is an independent investment management firm based in Madison, WI. The firm was founded in 1974, has approximately $26 billion in assets under management as of March 31, 2024, and is recognized as one of the nation’s top investment firms. Madison Investments offers domestic fixed income, U.S. and international equity, covered call, multi-asset, insurance, and credit union investment management strategies.
“Madison” and/or “Madison Investments” is the unifying tradename of Madison Investment Holdings, Inc., Madison Asset Management, LLC, and Madison Investment Advisors, LLC. Madison Funds are distributed by MFD Distributor, LLC. Madison is registered as an investment adviser with the U.S. Securities and Exchange Commission. MFD Distributor, LLC is registered with the U.S. Securities and Exchange Commission as a broker-dealer and is a member firm of the Financial Industry Regulatory Authority (www.finra.org).
Important Additional Information and Where to Find It
MCN has filed a preliminary proxy statement and intends to file the definitive proxy statement (the “Proxy Statement”) with the U.S. Securities and Exchange Commission (the “SEC”) in connection with the proposed acquisition and solicitation of proxies at a forthcoming special meeting of shareholders of MCN in the fourth quarter of 2024 (the “2024 Special Meeting”). Prior to the 2024 Special Meeting, MCN will file with the SEC and subsequently distribute to MCN shareholders of record as of July 22, 2024, the Proxy Statement together with a proxy card. SHAREHOLDERS ARE URGED TO READ THE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT DOCUMENTS THAT ARE FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Shareholders will be able to obtain, free of charge, copies of the Proxy Statement, any amendments or supplements thereto and any other documents (including the proxy card) when filed by MCN with the SEC in connection with the 2024 Special Meeting at the SEC’s website (http://www.sec.gov) or at the website disclosed in the Proxy Statement.
The Fund’s shareholders will be able to obtain copies of the definitive proxy statement and accompanying materials, when available, by calling the Fund’s proxy agent toll-free at 1-866-679-6748.
Contacts
Kimberly Flynn, President
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@xainvestments.com
www.xainvestments.com
XA Investments Contributes to FundFire Article More Hedge Funds Move toward Interval Fund Market
Chris Larson from FundFire reviews how hedge funds are finding market share in the interval fund space. Larson describes Catalyst’s and Perini Capital’s new fund, along with a new fund from Wellington Management (as signals of this shift). The article also features insights from Kimberly Flynn, CFA, on these funds and the interval fund industry at large.
The entrance of these hedge funds demonstrates how the interval fund market is drawing a variety of fund strategies, with Flynn pointing out that “many hedge fund managers are interested in attracting a different audience, diversifying revenues and entering the growing wealth management space.” For this reason, hedge funds are finding success with retail and institutional investors alike who have gravitated towards interval funds due to increased transparency and ’40 Act protections.
Generally, Flynn has “observed an uptick in hedge fund strategies in the pipeline” as multiple other hedge funds have filed in the past few months. Now that interval funds have been successful, with the 20 biggest interval funds having over $2 billion in assets respectively, hedge funds finally have proof that the interval fund structure works. Flynn also believes that since there has been “positive performance trends for hedge funds the last three years, it makes sense that we are seeing more hedge funds explore this [interval fund] product structure.”
To read the full article, please click here.
For more information on interval funds, please visit our CEF Market Research page. Click 'Subscribe' for access to XAI’s new online research portal and pricing info. The in-depth XA Investments Quarterly Market Updates for Non-Listed CEFs and Listed CEFs provide actionable insights and consolidated data, including market statistics, IPOs, recent fund filings, sponsor data, and market overview information.
XA Investments Contributes to Ignites Article on Blackstone’s New Interval Fund Filing
Alyson Velati from Ignites discusses Blackstone's new interval fund launch, the Blackstone Private Multi-Asset Credit Fund, and the liquidation of their first interval fund, the Blackstone Floating Rate Enhanced Income Fund. The article also features insights from Kimberly Flynn, CFA, President of XA Investments.
Blackstone's new interval fund will invest in private corporate credit, asset-based credit, structured credit, and liquid credit, with a focus on the United States market. With the close of Blackstone's previous interval fund, Flynn points out that it was "fairly small" with around $289 million in assets when liquidated.
With Blackstone now turning their attention in the interval / tender offer fund space, Flynn says "it may take some patience and time for Blackstone to unseat the current interval fund market leaders, who have a massive head start in the space."
To read the full article, please click here.
For more information on interval funds, please visit our CEF Market Research page. Click 'Subscribe' for access to XAI’s new online research portal and pricing info. The in-depth XA Investments Quarterly Market Updates for Non-Listed CEFs and Listed CEFs provide actionable insights and consolidated data, including market statistics, IPOs, recent fund filings, sponsor data, and market overview information.
XAI Octagon Floating Rate & Alternative Income Trust Will Host Q2 2024 Quarterly Webinar on August 29, 2024
August 22, 2024, Chicago – XAI Octagon Floating Rate & Alternative Income Trust (NYSE: XFLT) (the “Trust”) today announced that it plans to host the Trust’s Quarterly Webinar on August 29, 2024 at 11:00 am (Eastern Time). Kevin Davis, Managing Director at XA Investments (“XAI”) will moderate the Q&A style webinar with Kimberly Flynn, President at XAI, and Lauren Law, Senior Portfolio Manager at Octagon Credit Investors.
TO JOIN VIA WEB: Please go to the Knowledge Bank section of xainvestments.com or click here to find the online registration link.
TO USE YOUR TELEPHONE: After joining via web, if you prefer to use your phone for audio, you must select that option and call in using a number below, based on your current location.
Dial: (312) 626-6799 or (646) 558-8656 or (267) 831-0333 or (720) 928-9299 or (213) 338-8477
Webinar ID: 828 6741 7285
REPLAY: A replay of the webinar will be available in the Knowledge Bank section of xainvestments.com.
* * *
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust’s common shares are traded on the New York Stock Exchange under the symbol “XFLT,” and the Trust’s 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol “XFLTPRA.”
About XA Investments
XA Investments LLC (“XAI”) serves as the Trust’s investment adviser. XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory services, the firm also provides investment fund structuring and consulting services focused on registered closed-end funds to meet institutional client needs. XAI offers custom product build and consulting services, including development and market research, sales, marketing, fund management and administration. XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. XAI provides individual investors with access to institutional-caliber alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services firm providing M&A, corporate advisory and asset management services to clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC (“Octagon”) serves as the Trust’s investment sub-adviser. Octagon is a 25+ year old, $33.8B below-investment grade corporate credit investment adviser focused on leveraged loan, high yield bond and structured credit (collateralized loan obligation debt and equity) investments. Through fundamental credit analysis and active portfolio management, Octagon’s investment team identifies attractive relative value opportunities across below-investment grade asset classes, sectors and issuers. Octagon’s investment philosophy and methodology encourage and rely upon dynamic internal communication to manage portfolio risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach in its effort to generate attractive risk-adjusted returns for its investors. For more information, please visit www.octagoncredit.com.
* * *
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust’s webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
Paralel Distributors, LLC - Distributor
* * *
Media Contact:
Kimberly Flynn, President
XA Investments LLC
Phone: 312-374-6931
Email: kflynn@xainvestments.com
XAI Octagon Floating Rate & Alternative Income Trust Declares its Monthly Common Shares Distribution of $0.085 per Share
August 1, 2024, Chicago – XAI Octagon Floating Rate & Alternative Income Trust (the “Trust”) has declared its regular monthly distribution of $0.085 per share on the Trust’s common shares (NYSE: XFLT), payable on September 3, 2024, to common shareholders of record as of August 15, 2024, as noted below. The amount of the distribution represents no change from the previous month's distribution amount of $0.085 per share.
The following dates apply to the declaration:
Ex-Dividend Date August 15, 2024
Record Date August 15, 2024
Payable Date September 3, 2024
Amount $0.085 per common share
Change from Previous Month No change
Common share distributions may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust’s common shareholders on Form 1099 after the end of the 2024 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust’s distributions, please visit www.xainvestments.com.
The Trust’s net investment income and capital gain can vary significantly over time; however, the Trust seeks to maintain more stable common share monthly distributions over time. The Trust’s investments in CLOs are subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States (“U.S. GAAP”), and, as a result, there may be significant differences between the Trust’s GAAP income and its taxable income. The Trust’s final taxable income for the current fiscal year will not be known until the Trust’s tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute to common shareholders by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Trust’s fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The common share distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder’s tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder’s potential gain, or reduce the common shareholder’s potential loss, on any subsequent sale or other disposition of common shares.
The distribution shall be paid on the Payment Date unless the payment of such distribution is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern, or to comply with the applicable terms or financial covenants of the Trust’s senior securities.
Future common share distributions will be made if and when declared by the Trust’s Board of Trustees, based on a consideration of number of factors, including the Trust’s continued compliance with terms and financial covenants of its senior securities, the Trust’s net investment income, financial performance and available cash. There can be no assurance that the amount or timing of common share distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of common share distributions in the future.
* * *
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust’s common shares are traded on the New York Stock Exchange under the symbol “XFLT,” and the Trust’s 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol “XFLTPRA”.
About XA Investments
XA Investments LLC (“XAI”) serves as the Trust’s investment adviser. XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory services, the firm also provides investment fund structuring and consulting services focused on registered closed-end funds to meet institutional client needs. XAI offers custom product build and consulting services, including development and market research, sales, marketing, fund management and administration. XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. XAI provides individual investors with access to institutional-caliber alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services firm providing M&A, corporate advisory and asset management services to clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC (“Octagon”) serves as the Trust’s investment sub-adviser. Octagon is a 25+ year old, $34.0B below-investment grade corporate credit investment adviser focused on leveraged loan, high yield bond and structured credit (CLO debt and equity) investments. Through fundamental credit analysis and active portfolio management, Octagon’s investment team identifies attractive relative value opportunities across below-investment grade asset classes, sectors and issuers. Octagon’s investment philosophy and methodology encourage and rely upon dynamic internal communication to manage portfolio risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach in its effort to generate attractive risk-adjusted returns for its investors. For more information, please visit www.octagoncredit.com.
* * *
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust’s webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
Paralel Distributors, LLC - Distributor
* * *
Media Contact:
Kimberly Flynn, President
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
WealthManagement.com Covers Interval Fund Market Growth and Sources XA Investments’ Research
David Bodamer, the editor of WealthManagement.com, identifies three different sources for interval fund market statistics and growth projections. The interval fund market has seen significant growth, with a combined net asset value (NAV) of $86.4 billion as of mid-2024, reflecting a 10.9% increase this year, according to Robert A. Stanger & Co. Morningstar reports $80.7 billion in assets under management for 100 interval funds.
The article highlights XA Investments’ research from the monthly market update which states that the non-listed closed-end fund market (comprised of interval and tender offer funds) consists of 110 interval funds with $101.6 billion in managed assets. By June 30, there were 230 effective funds with $150 billion in net assets, projected to rise to 235-255 funds by year-end, reaching $160-$175 billion in net assets. While the interval fund market faced challenges in 2023 due to outflows from real estate funds, credit and private equity segments have experienced growth. There are currently 50 funds in the SEC registration process, indicating potential for market expansion.
Stanger also reported how Cliffwater LLC has become the market leader, managing two private credit-based interval funds that represent nearly 25% of all interval fund assets. In 2024, Cliffwater raised $4.9 billion, accounting for 43% of the sector's fundraising. As the market evolves, infrastructure-focused funds are also gaining traction, with gross sales surpassing $144 million year-to-date.
Overall, the interval fund market is poised for significant growth in 2024, driven by strong performance in alternative investments.
To read the full article, please click here.
For more information on interval funds, please visit our CEF Market Research page. Click 'Subscribe' for access to XAI’s new online research portal and pricing info. The in-depth XA Investments Quarterly Market Updates for Non-Listed CEFs and Listed CEFs provide actionable insights and consolidated data, including market statistics, IPOs, recent fund filings, sponsor data, and market overview information.
XA Investments Contributes to Ignites Article on Franklin Templeton’s Fee Waiver
In her new article, Alyson Velati from Ignites discusses the fee waiver Franklin Templeton applied to its private credit interval fund in an effort to scale it past the crucial $100 million threshold for viability. The article, “Fee Waivers Aim to Lift Franklin Interval Fund Out of ‘Valley of Death’,” features insights from Kimberly Flynn, President of XA Investments.
Franklin Templeton launched the fund in October 2022 to invest in U.S. middle-market debt. The fund is managed by Benefit Street Partners and charges a 125 basis point management fee. Franklin utilized LinkedIn, its website, and partner emails to promote the fee waiver. Fee waivers are commonly seen in funds seeking initial assets, noted John Cole Scott of Closed-End Fund Advisors.
Flynn described the fund's current phase as the "interval fund valley of death," a stage where fee waivers are commonly used to attract significant initial investors essential for scaling beyond $100 million in fund assets. “Scale is critical to the success of any relatively new interval fund,” she explained.
To read the full article, please click here.
For more information on interval funds, please visit our CEF Market Research page. Click 'Subscribe' for access to XAI’s new online research portal and pricing info. The in-depth XA Investments Quarterly Market Updates for Non-Listed CEFs and Listed CEFs provide actionable insights and consolidated data, including market statistics, IPOs, recent fund filings, sponsor data, and market overview information.
XA Investments Contributes to Citywire Article on T. Rowe Price’s First Interval Fund
Tania Mitra discusses T. Rowe Price’s forthcoming launch of its first interval fund, the T. Rowe Price OHA Flexible Credit Income fund, through Oak Hill Advisors (OHA). The article published on July 3, 2024, "T. Rowe Price plans first interval fund for private credit shop Oak Hill," features insights from Kimberly Flynn, President of XA Investments.
The fund aims to invest up to 50% of its assets in direct lending and up to 30% in various other credit strategies including junior capital solutions, structured credit, liquid credit, special situations and real asset credit. Flynn noted the fund would “represent the best of what OHA has to offer in credit.” It will offer three share classes and charge an 'income incentive' fee in addition to its base management fee. The fund plans to conduct quarterly share repurchases between 5-25% of its outstanding shares at NAV and will impose a 2% fee on withdrawals during its first year. This move follows T. Rowe Price's acquisition of OHA in 2021 as part of T. Rowe Price’s broader strategy to expand into private markets.
To read the full article, please click here.
For more information on interval funds, please visit our CEF Market Research page. Click 'Subscribe' for access to XAI’s new online research portal and pricing info. The in-depth XA Investments Quarterly Market Updates for Non-Listed CEFs and Listed CEFs provide actionable insights and consolidated data, including market statistics, IPOs, recent fund filings, sponsor data, and market overview information.
XAI Octagon Floating Rate & Alternative Income Trust Declares its Monthly Common Shares Distribution and Quarterly Preferred Shares Dividend
July 1, 2024, Chicago – XAI Octagon Floating Rate & Alternative Income Trust (the “Trust”) has declared its regular monthly distribution of $0.085 per share of the Trust’s common shares (NYSE: XFLT). The Trust also declared preferred dividends for the quarter of $0.40625 per share of the Trust’s 6.50% Series 2026 Term Preferred Shares (NYSE: XFLTPRA).
The following dates apply to each declaration:
Share Class | Ex-Dividend Date | Record Date | Payable Date | Amount | Change from Previous Declaration |
XFLT | July 15, 2024 | July 15, 2024 | August 1, 2024 | $0.085 | No Change |
XFLTPRA | July 15, 2024 | July 15, 2024 | July 31, 2024 | $0.40625 | No Change[1] |
[1] The Trust’s 6.50% Series 2026 Term Preferred Shares dividend is calculated based on the preferred shares Liquidation Preference of $25.00 per share and the fixed dividend rate of 6.50%.
Common share distributions may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust’s common shareholders on Form 1099 after the end of the 2024 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust’s distributions, please visit www.xainvestments.com.
The Trust’s net investment income and capital gain can vary significantly over time; however, the Trust seeks to maintain more stable common share monthly distributions over time. The Trust’s investments in CLOs are subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States (“U.S. GAAP”), and, as a result, there may be significant differences between the Trust’s GAAP income and its taxable income. The Trust’s final taxable income for the current fiscal year will not be known until the Trust’s tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute to common shareholders by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on January 31 of the calendar year (unless an election is made to use the Trust’s fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The common share distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder’s tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder’s potential gain, or reduce the common shareholder’s potential loss, on any subsequent sale or other disposition of common shares.
Preferred shareholders are entitled to receive cumulative cash dividends and distributions on the Trust’s 6.50% Series 2026 Term Preferred Shares, when, as and if declared by, or under authority granted by, the Board of Trustees of the Trust out of funds legally available for distribution and in preference to dividends and distributions on common shares. If the Trust is unable to distribute the full dividend amount due in a dividend period on the Trust’s 6.50% Series 2026 Term Preferred Shares, the dividends will be distributed on a pro rata basis among the preferred shareholders.
Distributions and dividends shall be paid on the Payable Date listed above unless the payment of such distribution or dividend is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law, to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern or, with regard to the Trust’s regular monthly distribution to common shareholders, to comply with the applicable terms or financial covenants of the Trust’s senior securities.
Future common share distributions will be made if and when declared by the Trust’s Board of Trustees, based on a consideration of number of factors, including the Trust’s continued compliance with terms and financial covenants of its senior securities, the Trust’s net investment income, financial performance and available cash. There can be no assurance that the amount or timing of common share distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of common share distributions in the future.
* * *
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust’s common shares are traded on the New York Stock Exchange under the symbol “XFLT,” and the Trust’s 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol “XFLTPRA.”
About XA Investments
XA Investments LLC (“XAI”) serves as the Trust’s investment adviser. XAI is a Chicago-based firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory services, the firm also provides investment fund structuring and consulting services focused on registered closed-end funds to meet institutional client needs. XAI offers custom product build and consulting services, including development and market research, sales, marketing, fund management and administration. XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. XAI provides individual investors with access to institutional-caliber alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services firm providing M&A, corporate advisory and asset management services to clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC (“Octagon”) serves as the Trust’s investment sub-adviser. Octagon is a 25+ year old, $34.2B below-investment grade corporate credit investment adviser focused on leveraged loan, high yield bond and structured credit (CLO debt and equity) investments. Through fundamental credit analysis and active portfolio management, Octagon’s investment team identifies attractive relative value opportunities across below-investment grade asset classes, sectors and issuers. Octagon’s investment philosophy and methodology encourage and rely upon dynamic internal communication to manage portfolio risk. Over its history, the firm has applied a disciplined, repeatable and scalable approach in its effort to generate attractive risk-adjusted returns for its investors. For more information, please visit www.octagoncredit.com.
* * *
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust’s webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
* * *
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Announces Portfolio Management Change
Chicago – January 2, 2024 – XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") (NYSE: XFLT), a diversified, closed-end management investment company with an investment objective to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle, has announced today portfolio management changes.
Effective January 1, 2024, Lauren Law, CFA, Senior Portfolio Manager at Octagon Credit Investors (“Octagon”), and a member of the firm's Investment Committee, assumed the position of lead portfolio manager of the Trust. Ms. Law has been a member of the Trust’s portfolio management team since its inception in 2017. Gretchen Lam previously served as lead portfolio manager of the Trust; effective January 1, 2024, Ms. Lam succeeded Andrew Gordon as Chief Executive Officer of Octagon.
Ms. Law is supported by a team of Octagon investment professionals in the day-to-day management of the Trust's portfolio, including Ms. Lam who will continue to serve on the firm’s Investment Committee alongside Mr. Gordon (Executive Chair), Michael Nechamkin (Chief Investment Officer and Senior Portfolio Manager), Sean Gleason (Portfolio Manager) and Maegan Gallagher (Head of Trading and Capital Markets, and Head of Strategic Initiatives).
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust’s common shares are traded on the New York Stock Exchange under the symbol "XFLT," and the Trust’s 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol "XFLTPRA".
About XA Investments
XA Investments LLC (“XAI”) serves as the Trust’s investment adviser. XAI is a Chicago-based
firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory
services, the firm also provides investment fund structuring and consulting services focused
on registered closed-end funds to meet institutional client needs. XAI offers custom product
build and consulting services, including development and market research, sales, marketing,
fund management and administration. XAI believes that the investing public can benefit from
new vehicles to access a broad range of alternative investment strategies and managers. XAI
provides individual investors with access to institutional-caliber alternative managers. For
more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services
firm providing M&A, corporate advisory and asset management services to clients. It has
offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC (“Octagon”) serves as the Trust’s investment sub-adviser.
Octagon is a 25+ year old, $34.5B below-investment grade corporate credit investment adviser
focused on leveraged loan, high yield bond and structured credit (CLO debt and equity)
investments. Through fundamental credit analysis and active portfolio management, Octagon’s
investment team identifies attractive relative value opportunities across below-investment
grade asset classes, sectors and issuers. Octagon’s investment philosophy and methodology
encourage and rely upon dynamic internal communication to manage portfolio risk. Over its
history, the firm has applied a disciplined, repeatable and scalable approach in its effort
to generate attractive risk-adjusted returns for its investors. For more information, please
visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust’s webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE |
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
XAI Octagon Floating Rate & Alternative Income Term Trust Announces Shareholder Approval of Important Proposals
Approved proposals make the trust perpetual and will have a new sub-advisory agreement with Octagon Credit Investors.
CHICAGO, January 24, 2024 – XAI Octagon Floating Rate & Alternative Income Term Trust (the “Trust”) (NYSE: XFLT) announced that its shareholders have approved two important proposals at the reconvened special meeting of shareholders (the “Special Meeting”) held today.
- At the Special Meeting, shareholders approved the following:
- An amendment to the Trust’s Second Amended and Restated Declaration of Trust (the “Term Amendment”) to eliminate the Trust’s termination date of December 31, 2029 and make the Trust perpetual.
- A new sub-advisory agreement among Octagon Credit Investors, LLC (“Octagon”), the Trust and XA Investments LLC (“XAI”) (the “New Octagon Agreement”), to provide for continued portfolio management by Octagon upon the closing of the acquisition of Octagon’s parent company, Conning Holdings Limited (together with Conning & Company, “Conning”), by Generali Investment Holdings, an entity comprising the majority of asset management activities of Generali Group (“Generali”).
The Term Amendment
The Term Amendment, which is the first of its kind for a listed term trust closed-end fund, removes the Trust’s previous termination date and makes it a perpetual closed-end fund. The Term Amendment will be effective as of February 1, 2024. In connection with the Term Amendment, the Trust will change its name from XAI Octagon Floating Rate & Alternative Term Trust to XAI Octagon Floating Rate & Alternative Trust. The Trust will begin trading on the New York Stock Exchange under the new name effective before the market opens on February 1, 2024 and will continue to trade under ticker symbol XFLT. There are no changes to the Trust’s investment policies or strategies in conjunction with the Term Amendment or the name change.
-
The Trust’s Board believes the Term Amendment will provide multiple benefits to
shareholders, including:
- Ability to maintain a fully invested portfolio. The Term Amendment will allow the Trust to continue operating just as it has since inception, with no need to wind down investments or reduce its leverage levels, since the Trust will no longer have a termination date.
- Remain invested in the Trust. Those shareholders who wish to remain invested in the Trust can maintain their investment and will not need to seek a replacement investment due to termination, since the Trust is now a perpetual investment fund.
- Benefit from potential growth and scale efficiencies. As a perpetual investment fund, the Trust can continue to seek growth and scale opportunities, just as it always has done via an accretive at-the-market offering and strategic primary issuances.
Greg Dingens, Chair of the Trust’s Board and an Independent Trustee noted, “We’re very pleased that shareholders voted in favor to approve both proposals. We believe the vote in favor of the proposals is a signal of shareholders’ support for the Trust. These approvals will propel the Trust’s further growth of its common share base over time as a perpetual fund.”
The New Octagon Agreement
The shareholders’ approval of the New Octagon Agreement allows Octagon to remain the Trust’s sub-adviser upon the closing of Generali’s acquisition of Octagon’s parent company, Conning. Generali is one of the largest global insurance and asset management providers, operating in over 50 countries with over 80,000 employees. The New Octagon Agreement will be entered into upon the closing of the transaction, which is anticipated to occur during the first half of 2024, and will not result in any change in the portfolio management of the Trust or in the Trust’s investment objectives or policies.
Gretchen Lam, Chief Executive Officer of Octagon and a member of the firm’s Investment Committee remarked, "We are thankful for the shareholders and their continued faith in Octagon’s management of the Trust’s portfolio. We’re excited for the next phase of Octagon's growth and are pleased to continue serving XFLT shareholders in the years to come.”
About XA Investments
XA Investments LLC (“XAI”) serves as the Trust’s investment adviser. XAI is a Chicago-based
firm founded by XMS Capital Partners in April, 2016. In addition to investment advisory
services, the firm also provides investment fund structuring and consulting services focused
on registered closed-end funds to meet institutional client needs. XAI offers custom product
build and consulting services, including development and market research, sales, marketing,
fund management and administration. XAI believes that the investing public can benefit from
new vehicles to access a broad range of alternative investment strategies and managers. XAI
provides individual investors with access to institutional-caliber alternative managers. For
more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services
firm providing M&A, corporate advisory and asset management services to clients. It has
offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC (“Octagon”) serves as the Trust’s investment sub-adviser.
Octagon is a 25+ year old, $34.5B below-investment grade corporate credit investment adviser
focused on leveraged loan, high yield bond and structured credit (CLO debt and equity)
investments. Through fundamental credit analysis and active portfolio management, Octagon’s
investment team identifies attractive relative value opportunities across below-investment
grade asset classes, sectors and issuers. Octagon’s investment philosophy and methodology
encourage and rely upon dynamic internal communication to manage portfolio risk. Over its
history, the firm has applied a disciplined, repeatable and scalable approach in its effort
to generate attractive risk-adjusted returns for its investors. For more information, please
visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust’s webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
This press release contains certain statements that may include “forward-looking statements.” Forward-looking statements can be identified by the words “may,” “will,” “intend,” “expect,” “estimate,” “continue,” “plan,” “anticipate,” and similar terms and the negatives of such terms. By their nature, all forward-looking statements involve risks and uncertainties, and actual results could differ materially from those contemplated by the forward-looking statements. Many factors that could materially affect the Trust’s actual results are the performance of the portfolio of securities held by the Trust, the conditions in the U.S. and international financial and other markets, the price at which the Trust’s shares trade in the public markets and other factors discussed in the Trust’s annual and semi-annual reports filed with the SEC.
Although the Trust believes that the expectations expressed in such forward-looking statements are reasonable, actual results could differ materially from those expressed or implied in such forward-looking statements. The Trust’s future financial condition and results of operations, as well as any forward-looking statements, are subject to change and are subject to inherent risks and uncertainties. You are cautioned not to place undue reliance on these forward-looking statements, which are made as of the date of this press release. Except for the Trust’s ongoing obligations under the federal securities laws, the Trust does not intend, and the Trust undertakes no obligation, to update any forward-looking statement.
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE |
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
The Alts Market Evolution
In his recent article, Tom Stabile of FundFire Alts discusses the evolution of alternative investment products. Specifically, how access to alternatives has transformed from a niche market to a hotbed of product development. While alternatives are still commonly accessed through structures such as interval funds, tender offer funds, REITs, and BDCs, managers are increasingly differentiating their offerings into hybrid structures.
Leading the charge in the alts market are managers like Apollo, Partners Group, and KKR, introducing a surge of new products. These products aim to provide clients exposure to alternative strategies with periodic liquidity, filling the gap between traditional private funds and daily-traded mutual funds. While the focus has been on private credit and real estate, there's been a recent expansion into private equity and infrastructure. Alts managers, including Blackstone and Ares, are diversifying, while traditional mutual fund players like BlackRock and PIMCO have entered the space.
The market, though small compared to the mutual fund and ETF markets, is gaining attention for future growth. Managers anticipate continued expansion in response to advisor demand. In her contribution to the article, Kimberly Flynn, Managing Director at XA Investments, notes that larger traditional and alts managers should be thinking about, “what does the market need and where are the market gaps. But some of them want a piece of each opportunity - it's like manifest destiny.”
XAI Octagon Floating Rate & Alternative Income Trust Declares its Monthly Common Shares Distribution of $0.085 per Share
February 1, 2024, Chicago – XAI Octagon Floating Rate & Alternative Income Trust (the “Trust”)1 has declared its regular monthly distribution of $0.085 per share on the Trust’s common shares (NYSE: XFLT), payable on March 1, 2024, to common shareholders of record as of February 15, 2024, as noted below. The amount of the distribution represents no change from the previous month's distribution amount of $0.085 per share.
The following dates apply to the declaration:
Ex-Dividend Date | February 14, 2024 | |
Record Date | February 15, 2024 | |
Payable Date | March 1, 2024 | |
Amount | $0.085 per common share | |
Change from Previous Month | No change |
Common share distributions may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust’s common shareholders on Form 1099 after the end of the 2024 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust’s distributions, please visit www.xainvestments.com.
The Trust’s net investment income and capital gain can vary significantly over time; however, the Trust seeks to maintain more stable common share monthly distributions over time. The Trust’s investments in CLOs are subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States (“U.S. GAAP”), and, as a result, there may be significant differences between the Trust’s GAAP income and its taxable income. The Trust’s final taxable income for the current fiscal year will not be known until the Trust’s tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax that is imposed if the Trust does not distribute to common shareholders by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Trust’s fiscal year). In certain circumstances, the Trust may elect to retain income or capital gain to the extent that the Board of Trustees, in consultation with Trust management, determines it to be in the interest of shareholders to do so.
The common share distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder’s tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder’s potential gain, or reduce the common shareholder’s potential loss, on any subsequent sale or other disposition of common shares.
The distribution shall be paid on the Payment Date unless the payment of such distribution is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern, or to comply with the applicable terms or financial covenants of the Trust’s senior securities.
Future common share distributions will be made if and when declared by the Trust’s Board of Trustees, based on a consideration of number of factors, including the Trust’s continued compliance with terms and financial covenants of its senior securities, the Trust’s net investment income, financial performance and available cash. There can be no assurance that the amount or timing of common share distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of common share distributions in the future.
1Effective February 1, 2024, the name of the Trust was changed from “XAI Octagon Floating Rate & Alternative Income Term Trust” to “XAI Octagon Floating Rate & Alternative Income Trust.”
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least 80% of its Managed Assets in floating rate credit instruments and other structured credit investments. There can be no assurance that the Trust will achieve its investment objective.
The Trust’s common shares are traded on the New York Stock Exchange under the symbol “XFLT,” and the Trust’s 6.50% Series 2026 Term Preferred Shares are traded on the New York Stock Exchange under the symbol “XFLTPRA”.
About XA Investments
XA Investments LLC (“XAI”) serves as the Trust’s investment adviser. XAI is a Chicago-based
firm
founded by XMS Capital Partners in April, 2016. In addition to investment advisory services,
the
firm also provides investment fund structuring and consulting services focused on registered
closed-end funds to meet institutional client needs. XAI offers custom product build and
consulting
services, including development and market research, sales, marketing, fund management and
administration. XAI believes that the investing public can benefit from new vehicles to
access a
broad range of alternative investment strategies and managers. XAI provides individual
investors
with access to institutional-caliber alternative managers. For more information, please
visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services
firm
providing M&A, corporate advisory and asset management services to clients. It has offices
in Chicago,
Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC (“Octagon”) serves as the Trust’s investment sub-adviser.
Octagon is a
25+ year old, $33.8B below-investment grade corporate credit investment adviser focused on
leveraged
loan, high yield bond and structured credit (CLO debt and equity) investments. Through
fundamental
credit analysis and active portfolio management, Octagon’s investment team identifies
attractive
relative value opportunities across below-investment grade asset classes, sectors and
issuers.
Octagon’s investment philosophy and methodology encourage and rely upon dynamic internal
communication
to manage portfolio risk. Over its history, the firm has applied a disciplined, repeatable
and scalable
approach in its effort to generate attractive risk-adjusted returns for its investors. For
more
information, please visit www.octagoncredit.com.
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust’s webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE |
Media Contact:
Kimberly Flynn, Managing Director
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
Pershing Square Makes Waves in the U.S. Listed CEF Market
In his recent article, David Isenberg of Ignites discusses one of the most captivating stories of the week: the initial filing of Pershing Square’s first U.S. listed closed-end fund. Pershing Square, founded by Bill Ackman, has garnered considerable attention in recent years from the firm’s reputation as market-beating stock pickers in its hedge fund strategies.
The Pershing Square USA closed-end fund (PSUS) will invest in undervalued large-cap U.S. equities with an activist approach, mirroring the strategy of Pershing Square Holdings, a London-listed closed-end fund.
The fund will trade on the NYSE, and will be underwritten by Citigroup Global Markets, UBS Securities, and Bank of America Securities. Kimberly Flynn, Managing Director, Alternative Investments at XA Investments, noted: "The choice of three underwriters — two with large retail advisory distribution, Bank of America’s Merrill Lynch and UBS, as well as another with a large institutional footprint, Citigroup — suggests the hedge fund manager is seeking both institutional and retail investors in the United States."
The fund will operate continuously without scheduled liquidity events, waive management fees for the first year, and charge a 2% annual advisory fee thereafter.
- 08/29/2024 XA Investments Contributes to FundFire Article More Hedge Funds Move toward Interval Fund Market
Chris Larson from FundFire reviews how hedge funds are finding market share in the interval fund space.
- 08/23/2024 XA Investments Contributes to Ignites Article on Blackstone’s New Interval Fund Filing
Alyson Velati from Ignites discusses Blackstone's new interval fund launch, the Blackstone Private Multi-Asset Credit Fund, and the liquidation of their first interval fund, the Blackstone Floating Rate Enhanced Income Fund.
- 07/17/2024 XA Investments to Become Investment Adviser to Madison Investments Closed-End Fund and Will Retain Madison Investments as Portfolio Manager
XA Investments (XAI), an alternative investment management and consulting firm, announced the pending transaction, by which XAI will become investment adviser to the Madison Covered Call & Equity Strategy Fund (NYSE: MCN), a $146 million listed closed-end fund.
- 07/12/2024 WealthManagement.com Covers Interval Fund Market Growth and Sources XA Investments’ Research
David Bodamer, the editor of WealthManagement.com, identifies three different sources for interval fund market statistics and growth projections.
- 07/12/2024 XA Investments Contributes to Ignites Article on Franklin Templeton’s Fee Waiver
In her new article, Alyson Velati from Ignites discusses the fee waiver Franklin Templeton applied to its private credit interval fund in an effort to scale it past the crucial $100 million threshold for viability.
- 06/18/2024 XA Investments Contributes to Ignites Article on Wellington’s First Interval Fund
Alyson Velati from Ignites discusses Wellington Management's forthcoming launch of its first interval fund, the Wellington Global Multi-Strategy Fund.
- 06/11/2024 Kevin Davis Joins XA Investments as Head of Sales & Distribution
XA Investments LLC (“XAI”), a Chicago-based alternative investment management and consulting firm, today announced that Kevin Davis, CFP®, has joined XAI as a Managing Director and Head of Sales & Distribution.
- 06/3/2024 XA Investments Contributes to Citywire Article on T. Rowe Price’s First Interval Fund
Tania Mitra discusses T. Rowe Price’s forthcoming launch of its first interval fund, the T. Rowe Price OHA Flexible Credit Income fund, through Oak Hill Advisors (OHA).
- 05/23/2024 Capital Group and KKR Forge Strategic Partnership for Hybrid Public-Private Funds
Kimberly Flynn, President at XA Investments, recently contributed to an article published by Tania Mitra of Citywire. The article examines the planned launch of hybrid public-private funds by Capital Group and KKR.
- 05/15/2024 Interval and Tender Offer Fund Launches Rise Amid Drought in Listed CEF Launches
Kimberly Flynn, President at XA Investments, recently contributed to an article published by Alyson Velati of Ignites.
-
02/09/2024
Pershing Square Makes Waves in the
U.S. Listed CEF Market
In his recent article, David Isenberg of Ignites discusses one of the most captivating stories of the week: the initial filing of Pershing Square’s first U.S. listed closed-end fund. Pershing Square, founded by Bill Ackman, has garnered considerable attention in recent years...
-
01/25/2024
The Alts Market Evolution
In his recent article, Tom Stabile of FundFire Alts discusses the evolution of alternative investment products. Specifically, how access to alternatives has transformed from a niche market to a hotbed of product development. While alternatives are still commonly accessed through structures such as interval funds, tender offer funds, REITs, and BDCs, managers are increasingly differentiating...
-
12/20/2023
FundFire Alts Discusses Performance
Track Records in Non-listed Registered Funds Market
FundFire Alts Discusses Performance Track Records in Non-listed Registered Funds Market In Tom Stabile’s recent article, he examines whether investment managers in the non-listed registered funds market are increasingly relying on mutual fund-style three- and five-year performance track records to attract capital. While earlier success in the market was driven by manager brand names and broader historical results, recent evidence suggests a growing preference for managers with established track records. In discussing this trend, Kimberly Flynn, Managing Director at XA Investments, notes that "…
-
12/11/2023
Citywire – Interval funds: 10 success
stories from 2023
One of 2023’s defining trends within wealth management has been the increased prevalence and popularity of private asset funds. In particular, there has been increased interest -- from asset managers and investors -- in interval and tender offer funds, which offer access to private assets, often for lower minimums....
-
11/15/2023
Ignites Examines the Rise of Private
Credit, Discusses Potential Growth
In her recent article, Allison Velati of Ignites discusses the growth of credit assets in the non-listed closed-end fund market. Interest in credit strategies continues to rise, driven by increased investor demand and structural shifts in lending. Banks have implemented tighter lending standards, leading to fewer loan....
-
09/20/2023
SEC's Potential Update to Accredited
Investor Definition Sparks Concern in Non-Listed Alts Market
Ben McCulloch, General Counsel at XA Investments, spoke with Tom Stabile of FundFire Alts to discuss the impact of changing the definition of accredited investor. Stabile’s article examines how alternative investment managers might experience disruptions should the SEC implement tighter restrictions....
-
09/08/2023
New Interval Fund Launch Emphasizes
Trend of Strategic Acquisitions, Ignites
In her recent article, Alyson Velati of Ignites highlights an increasingly common trend of new interval fund sponsors coming to market through the acquisition of existing funds. The latest example of this trend is Polen Capital's acquisition of DDJ Capital Management and the subsequent launch of the Polen Credit....
-
09/06/2023
Institutional Investment Consultant
Enters the Interval Fund Market, Ignites
In her recent article, Alyson Velati of Ignites discusses the growing trend of institutional investment consultants entering the interval fund market. One such firm, Meketa Investment Group, is set to launch its first proprietary interval fund, joining other notable players....
-
08/23/2023
FundFire Alts Discusses Renewed
Interest in Liquidity Marketplace for Non-Listed Products
In a recent article, Tom Stabile of FundFire Alts discusses how last year’s redemption wave in less liquid alternative investment strategies has renewed interest in external platforms that provide liquidity for investors looking to exit non-listed products like interval funds, BDCs, and real estate investment trusts (REITs)....
-
06/21/2023
FundFire Alts Observes Higher Leverage
Levels in Credit Interval Funds
In a recent article, Tom Stabile of FundFire Alts examines leverage trends among private credit interval funds. The article, "Leverage or No Leverage? Split Widens Among Credit Interval Funds," highlights the variation in leverage levels across funds. The article features insights from Kimberly Flynn, Manager Director of Alternative...
-
05/16/2023
XA Investments Publishes New White
Paper on Farmland Investing
May 16, 2023, Chicago - XA Investments LLC ("XAI"), an alternative investment firm that focuses on the US and UK closed-end fund markets, has published a new white paper, titled "Reframing Farmland as an Investment: A Compelling Opportunity in an Inflationary Environment." The white paper details the investment characteristics...
-
05/01/2023
Kimberly Flynn Contributes to New
Ignites Article on Interval Fund Distribution Platforms
Ignites reporter Alyson Velati published a new article on the increased competition between interval funds to get on a major distribution platform, such as Fidelity or Schwab. The article, "Interval Funds Face More Competition for Limited Shelf Space," features insights from Kimberly Flynn, XA Investments Managing Director of...
-
04/20/2023
Bloomberg Article on PIMCO Municipal
Bond CEFs Features Kimberly Flynn
In his new article, Bloomberg News reporter Martin Braun discusses updated investment guidelines for PIMCO's municipal bond focused listed CEFs that allow the funds to lend directly to US states and cities. The article, "PIMCO Allows Municipal Closed-End Funds to Make Loans to Cities," explains that the announcement applies...
-
04/14/2023
Ignites Article on BlackRock Listed
CEF Share Repurchase Program Features Kimberly Flynn
Alyson Velati reports for Ignites in her new article, "BlackRock Repurchases $112M in Closed-End Fund Shares," which covers BlackRock's share buyback program that was launched to address persistent discounts among the firm's listed CEFs. Since announced, the repurchase program has resulted in nearly $1 billion in CEF share buybacks...
-
04/05/2023
Kimberly Flynn Comments on Expenses
for Newly Launched Interval Fund in Ignites Article
In Alyson Velati's Ignites article, "Ark Caps Fees on $15M Interval Fund," she discusses how Ark Investment Management has lowered the fees on its new interval fund, Ark Venture Fund, due to slower-than-expected asset growth. The fund debuted in September 2022 with a 275-bp management fee and a $500 minimum investment. As of...
-
03/29/2023
FundFire Alts Article on Wirehouse
Adoption of Interval Funds Features XA Investments Data and Insights from
Kimberly Flynn
FundFire Alts Editor Tom Stabile discusses the recent addition of interval funds to wirehouse platforms amidst slowing fund inflows in his new article, "Wirehouses Dial Up Interval Fund Rosters as Sales Slowdown Worsens." The article uses XAI data to explore recent trends in wirehouse interval fund offerings. Kimberly Flynn,...
-
02/16/2023
Kimberly Flynn Quoted on Reworking the
Old 60/40 Portfolio
PlanAdviser's Natalie Lin writes about XA Investments' event "The Rise of Alternatives and the New 60/40 Portfolio" held at the NYSE on February 15th. The event featured a panel of industry experts who discussed how the 60/40 approach to investing has been seriously challenged in recent years by inflation and fears of a recession,...
-
01/11/2023
New FundFire Alts Article on Interval
Fund Proration Features Kimberly Flynn
In his new article, "Alts Fund Redemption Prorating Far Higher in '20 Than '22: Cliffwater," FundFire Alts editor Tom Stabile discusses Cliffwater's recent study of non-traded REITs, BDCs and interval funds. The study analyzed the occurrence of proration events - when funds receive redemption requests exceeding the stated amount...
-
11/02/2022
Kimberly Flynn Comments on Growing
Manager Interest in Non-Traded Products in FundFire Alts Article
FundFire Alts editor Tom Stabile writes about the growing interest among asset managers in launching non-traded products, including interval funds, REITs and BDCs. His article, titled "Sales Pace Sinks on Alts Products for Advisors, But Managers Rush In," explores both investor demand for the products and trends among managers...
-
06/15/2022
Kimberly Flynn Discusses Increasing
RIA Interest in Interval Funds in New FundFire Alts Article
Tom Stabile, editor for FundFire Alts, explores the growing traction of interval funds in the registered investment advisor (RIA) channel in his new article "Cliffwater's $8B Interval Fund Leads Way as RIA Market Sales Boom." The article details the success of the Cliffwater Corporate Lending Fund as a key example of this trend. A...
-
05/17/2022
New Ignites Article on the ARK Venture
Fund Features Insights from Kimberly Flynn
Ignites' Jackie Noblett explores the implications of updated terms in the ARK Venture Fund's most recent SEC filing in her new article, "Ark's Interval Fund Casts Wide Range for Startups." Specifically, the prospectus allows a wide 20-85% allocation to securities of private companies and the rest in public stocks. Kimberly...
-
03/16/2022
Kimberly Flynn Comments on Wave of
Retail Alts Products in New FundFire Alts Article
FundFire Alts editor Tom Stabile writes about the surge in new retail products being launched by alternatives managers in his recent article, "Bain, BlackRock, Nuveen, Oaktree Prep New BDCs for Advisor Market." Fund managers are increasingly exploring fund structures including non-traded BDCs, interval funds and tender offer...
-
11/09/2021
Kimberly Flynn Discusses the Rise of
Interval Funds in Citywire RIA Magazine
In the November edition of its RIA magazine, Citywire published an article about the increased adoption of interval funds across certain platforms. In the current low-yield environment, many wealth managers are under pressure to diversify their target allocations beyond the traditional 60/40 split. Investors are looking for...
-
11/09/2021
New Citywire Article on Interval Funds
Features Kimberly Flynn
Citywire's Nicole Piper explores the structural soundness of interval funds and their lack of popularity in recent years in her new article, "Gatekeepers debate the pros and cons of interval funds." The article features insights from a variety of asset management professionals, who debate the pros and cons of the structure in...
-
09/10/2021
Kimberly Flynn to Present on
Structural Advantages of Interval Funds at Upcoming Sub-Advised Funds
Forum
Foundation Research Associates released an article about the upcoming 32nd Sub-Advised Funds Forum taking place on September 20-21 where Kimberly Flynn, Managing Director at XA Investments, will participate as a panelist. The Sub-Advised Funds Forum is the leading event for asset managers, wholesalers, and distributors to connect...
-
07/30/2021
XA Investments Advises Thornburg on
the Launch of its First Listed Closed-End Fund
July 30, 2021, Chicago - XA Investments LLC ("XAI"), an alternative investment firm that focuses on the closed-end fund marketplace, has served as a consultant to Thornburg Investment Management ("Thornburg") on the successful completion of the initial public offering of the Thornburg Income Builder Opportunities Trust (NASDAQ:...
-
06/30/2021
Kimberly Flynn Explores New Liquidity
Mechanisms for Alts Funds in FundFire Alts Article
Tom Stabile, editor for FundFire Alts, writes about the new platform offerings from Nasdaq Fund Secondaries and Beneficient that aim to provide increased liquidity for investors in interval and tender offer funds. His article, titled "Nasdaq, Beneficient Target Qualms over Interval Fund Liquidity," focuses on the two platforms...
-
05/28/2021
Kimberly Flynn Discusses London-Listed
Fund Opportunities in Latest Episode of AICA's NAVigator podcast
Kimberly Flynn, XA Investments Managing Director of Alternative Investments, is featured in the latest episode of the NAVigator podcast produced by the Active Investment Company Alliance (AICA) and hosted by Chuck Jaffe. In the episode, titled "Firms benefit from using alts, ESG both here and abroad," she discusses how U.S.-based...
-
02/17/2021
FundFire Alts Article on Broader
Adoption of Interval Funds Features Kimberly Flynn
Tom Stabile, the editor for FundFire Alts, writes about the latest phase in the growth of the interval fund market with the increasing adoption of interval funds at the wires. His article, titled "Merrill, UBS, Morgan Pump Up Interval Fund Rosters," explores the delay between the registered investment advisor (RIA) market and...
-
01/07/2021
William Meyers to Advise XA
Investments on Closed-End Fund Product Management
CHICAGO, January, 7, 2021 – XA Investments LLC ("XAI"), a Chicago-based alternative investment management and consulting firm, has welcomed William Meyers as a Senior Advisor. After an extensive and successful career at Nuveen Investments, Bill will advise XAI on closed-end fund ("CEF") product management and syndication matters....
-
12/17/2020
New FIN News Article on Remote Holiday
Celebrations Features XA Investments
In her new article for FIN News, "Investment Management Space Celebrating Holidays With A Virtual Twist," Danielle Correa explores the creative ways in which asset management firms have been celebrating the holidays while working remotely. Many firms have emphasized virtual gatherings, including virtual wine tastings, magic...
-
10/29/2020
XA Investments Announces the Formal
Launch of its Closed-End Fund Consulting Practice
October 29, 2020, Chicago – XA Investments LLC ("XAI") announced the formal launch of its registered closed-end fund structuring and consulting practice. By using the firm's extensive industry network and expertise, XAI clients can now better leverage the strategic closed-end fund marketplace knowledge that has been at the core...
-
09/02/2020
Kimberly Flynn Comments on Remote Work
Policies in FundFire Alts Article
FundFire Alts' Tom Stabile discusses the various pandemic related policies and programs among asset managers in "Can KKR, Peers Make Remote Work + School = Less Stress?" As the number of school districts turning to remote learning increases, employees with school-age children will face significant new demands on their time during...
-
07/22/2020
Kimberly Flynn Comments on New KKR
Hybrid CEF/REIT in FundFire Alts Article
In "KKR Fires Up Strategy to Hold Real Estate in '40 Act Fund," Tom Stabile explores the unique structure of the KKR Real Estate Select Trust for FundFire Alts. This fund is the second of its kind, after Clarion Partners created the Clarion Partners Real Estate Income Fund (described in more detail here). It combines the structure...
-
03/11/2020
New Hybrid CEF/REIT Featured in
FundFire Alts Article; Kimberly Flynn Describes Market Opportunity.
In the new FundFire Alts article, "Legg's 'Crazy' Real Estate Fund: Manager Mints Unique Hybrid," Tom Stabile describes the different features of the Clarion Partners Real Estate Income Fund. The first of its kind to make it to market, this new fund combines the structure of a tender offer closed-end fund, registered under the...
-
02/05/2020
Ben McCulloch Shares Interval Fund
Expertise in FundFire Alts Article
Tom Stabile explores the newly proposed SEC rule designed to protect investors of registered funds that utilize derivatives in his new article, "New SEC Rule May Give Interval Funds Big Headaches." While the author explains that mutual funds and ETFs would see the biggest impact of this new rule, it is noted that credit strategy...
-
01/08/2020
New Interval Funds Launching with
Significant Seed Capital
FundFire Alts' Tom Stabile discusses recent trends among interval fund managers in his new article, "Goldman Plans to Seed Two New Interval Funds." Interval funds have been gaining popularity in recent years as a vehicle well-suited to hold illiquid and alternative investment strategies while still providing investors with the...
-
12/04/2019
Benjamin D. McCulloch Named as General
Counsel at XA Investments
Enhancing XAI's Expertise in Alternatives, Registered and Private Funds
CHICAGO, December 4, 2019 - XA Investments LLC ("XAI") has named Benjamin D. McCulloch as General Counsel. Ben joined XAI in August 2019 as Managing Director, Assistant General Counsel. XAI provides individual investors with access to institutional-caliber alternative managers by partnering with established asset managers with...
-
11/03/2019
Kimberly Flynn Featured in Wall Street
Journal Article on Private Equity
Simon Constable for the Wall Street Journal reports on the various benefits and potential risks of expanding private equity access to individual investors in his new article, "Private Equity Might Be Going Downscale. Should You Invest?" The SEC recently asked for public comment on the topic, suggesting that the regulatory agency...
-
10/09/2019
Financial Advisor Magazine Article
Covers XA Investments' Private Equity Event
XA Investments hosted a panel discussion on the topic of access to private equity at the NYSE on October 8th. Gregory Bresiger shares the key takeaways from the event in his new article, titled "Private Equity A Must For Retirement Portfolios, Panel Argues." The discussion featured private equity experts including Clayton Cheek...
-
07/18/2019
Kimberly Flynn Comments on Timely
Investment Strategies in Recent Newsmax Article
In "3 Investment Strategies for the Remainder of 2019," Juliette Fairley describes different investment recommendations that may become compelling as the economy begins to weaken/correct. These three investment strategies include defensive sectors like fixed income, interval funds and listed closed-end funds, and real estate...
-
06/12/2019
New Article on Alts in Retirement
Features XA Investments
In the new FA Magazine article, "The Case For Alternatives In Retirement Portfolios," Gregory Bresiger relays some of the key points from an XA Investments sponsored seminar on diversifying retirement portfolios. The main takeaways primarily centered around the idea of including alternatives in retirement portfolios to increase...
-
04/17/2019
Kimberly Flynn Quoted in Reuters
Article Covering Potential New CEF Requirements
In the Reuters article, "SEC proposal pushes managers to disclose more information," Kristen Haunss and Leela Parker Deo educate investors on a new regulatory proposal requiring closed-end fund managers to provide shareholders with greater information than they were legally obligated to provide in the past. Previously, CEF managers...
-
04/04/2019
XA Investments Discusses Risk
Considerations in Citywire Article on Interval Funds
In her recent article, "Pause for thought: Gatekeepers consider interval funds," Vicky Ge Huang explores the recent surge in investor demand for interval funds. She explains that this newfound interest is largely driven by the interval fund's accessibility to a broad spectrum of investors and its ability to house a wide variety...
-
11/07/2018
Financial Advisor Magazine Focuses on
Alt Managers Gravitating Towards Interval Closed-End Funds with Insight from
XAI's Kimberly Flynn
In a November article, published by Financial Advisor Magazine, entitled "Alternative Managers Gravitating Toward Interval Fund Structure" Juliette Fairley describes the interest generated by new products coming to the market in the interval fund space. Kimberly Flynn, Managing Director at XA Investments contributes to the article...
-
10/30/2018
Increasing Retail Investor Access to
Alternatives is Discussed by XAI in Fund Intelligence Article
At an event hosted by XA Investments at the NYSE, XAI's Managing Director Kimberly Flynn spoke on the focus of XAI to bring alternative investments to a wider audience of retail investors. Interval funds have grown in popularity among financial advisors and family offices. To read more on the Fund Intelligence article titled...
-
10/26/2018
Flynn Comments on Strong US Loan
Performance Amid Equity Volatility in a Reuters Article
Yun Li authored a recent Reuters article entitled "U.S. Loans Hold Strong Amid Rising Equity Volatility," which described how leveraged loans stood out as a best-performing asset class during high volatility in global equities in October 2018. Kimberly Flynn, Managing Director at XA Investments noted shifts in investors' portfolios...
-
09/21/2018
Financial Times FundFire's Friday
People Roundup Highlights the Addition of XAI Business Development
Professional
In a recently published FundFire article entitled "Chicago Alts Credit Shop Adds Sales Pro," Tom Stabile describes the expansion of the XA Investment business development team with the key hire of Addison West. Addison West handles alternatives education and distribution nationally for the independent registered investment advisor,...
-
09/21/2018
XAI Contributes to Financial Times
FundFire Article on Innovations in BDC and CEF Structures
In a recently published FundFire article entitled "New SEC Filing Aims to Crack Open BDC Sales," Tom Stabile highlights the latest developments in BDC and CEF structuring and the use of multiple share classes and other methods to broaden distribution of such products across various channels. To read the full article, please...
-
08/01/2018
XA Investments Senior Advisor Comments
on Best Communication Practices for Fund Managers
The recently published FundFire article, "Oaktree Pulls Plug on New Energy Infra Fund," discusses the decision by Oaktree Capital Management to abandon its energy infrastructure fund. The fund is one of two that resulted from Oaktree splitting a combined-strategy fund in 2017. Oaktree did not clarify whether it had yet raised...
-
07/18/2018
FundFire Article Discusses Schwab's
Decision to Halt Addition of New Interval Funds
Tom Stabile's recent article, "Schwab Pulls Back on New Interval Funds," examines the absence of new interval funds on Charles Schwab's product platforms. Although a spokeswoman from Schwab insists there is no formal ban on these investment vehicles, Stabile noted other Schwab contacts had indicated the custodian "paused" the...
-
06/20/2018
XA Investments Notes Growing Number of
Partnerships among Alternatives Managers and Distribution Firms in New FundFire
Article
Tom Stabile's new article, "Apollo Teams with American Beacon on Advisor Alts Fund," discusses the partnership between Apollo Global Management and American Beacon Advisors to launch an upcoming interval fund based on an existing Apollo hedge fund strategy. Kimberly Flynn, XA Investments Managing Director of Alternative Investments,...
-
06/05/2018
XA Investments Comments on Launch of
OFI Carlyle Private Credit Fund in New Reuters Article
Yun Li authors new article titled, "OppenheimerFunds, Carlyle launch new private credit interval fund," and discusses the trend of new funds making less liquid/illiquid alternative investment strategies available to retail investors. XA Investments Managing Director of Alternative Investments Kimberly Flynn contributes to the...
-
05/31/2018
Reuters Article Examines Effects of
Unprecedented First Quarter Demand in Leveraged Loan Market
The recently published Reuters article entitled "Loan repricings lead to market fatigue as deals pulled" discusses the impact of companies refinancing their existing loans at lower interest rates in recent months, namely that the leveraged loan market is now beginning to see loans trading below their issue prices and some deals...
-
05/11/2018
XA Investments Contributes to Reuters
Article Exploring Advantages of Interval Funds
In "New interval funds offer alternative investments to retail investors," authors Kristen Haunss and Yun Li discuss the recent rise in interval fund offerings that provide retail investors access to less liquid or illiquid alternative assets. The Reuters article features Kimberly Flynn, Managing Director of Alternative Investments...
-
05/04/2018
XA Investments Featured in Reuters
Article Discussing Increased Demand for Leveraged Loans
Yun Li of Reuters wrote an article entitled, "US leveraged loans in demand as asset class hits US$1trn milestone," describing increased demand for US leveraged loans amid strong first quarter performance. Despite regulation which might have curbed market growth, the leveraged loan market has doubled since 2013. Li suggests this...
-
04/25/2018
XA Investments Senior Advisor
Discusses Key Differentiators in Financial Times FundFire Article
In a recently published FundFire article entitled "Blackstone Fires Up New Direct Lending Biz," Tom Stabile describes the potential challenges Blackstone may face when venturing into a new market with a new set of products. To read the full article, please click here. Hank Hakewill, Senior Advisor to XA Investments on Marketing...
-
04/04/2018
Financial Times FundFire Alts Magazine
Explores Rapid Pace of Alternative Product Development
In the recently published Fundfire article entitled "Oaktree, Carlyle Lead New Round of Alts funds for Advisors," author Tom Stabile writes that product development is occurring at an accelerated pace following industry regulation and demand for greater liquidity and lower fees. The result is a proliferation of non-traded alternatives...
-
11/29/2017
XA Investments Comments on Private
Equity in Financial Times FundFire Alts
FundFire Alts recently published an article explaining how private equity and alternatives managers are aggressively investing in product development to better target the high-net worth investor and address fee sensitivities. For a link to "Lower Fee Private Equity Feeders Aim for Advisor Market" click here. Kimberly Flynn,...
-
11/17/2017
Bloomberg Covers Goldman's Plans in
CLO Market; XA Investments Contributes
The Bloomberg article entitled "Goldman Plots Conquest of Wall Street's $100 Billion CLO Machine," describes how Goldman Sachs is capitalizing on a CLO market that is "booming" and on track for record issuance this year. Please click here for the full article. Goldman's activity within the leveraged loan and CLO market has surged...
-
10/09/2017
Creditflux Reports on Growth in Credit
Interval Funds
Creditflux recently published an article highlighting the increase of credit managers who are launching interval funds designed to target retail investors. Please click here for a link to "Angel Oak Joins Growth in Credit Interval Funds." Kimberly Flynn – Managing Director, Alternative Investments contributed to the article. Her...
-
10/04/2017
XAI Featured in Emerging Manager
Monthly
Matthew McCue, Editor of Emerging Manager Monthly, a publication of Financial Investment News, interviewed XA Investments' Kimberly Flynn in its October issue. In the article "XA On Lookout for Opportunities after Launching First Closed-End Fund," Kimberly Flynn discusses XA Investments' role as Adviser to the XAI Octagon Floating...
-
10/03/2017
Financial Times FundFire Alts Magazine
Explores Growing Market for Alts Funds for Advisors
The Financial Times FundFire Alts Magazine's recent article, "Blackstone Joins Rush of New Alts Funds for Advisors" discusses the rapid product development in active non-traded alternative registered funds. Please click here for the article. Hank Hakewill – Senior Advisor, Marketing & Communications, contributed to the article. Among...
-
09/13/2017
XA Investments Discusses Non-Traded
Alternatives Funds with Financial Times FundFire Alts Magazine
The Financial Times FundFire Alts Magazine's article, "Managers Rush Market with Cheaper Alts Funds For Advisors" discusses recent trends in non-listed closed-end alts fund product development. Please click here for the article. Kimberly Flynn – Managing Director, Alternative Investments, XA Investments contributed to the article...
-
07/09/2017
XA Investments Comments on Rising
Popularity of Interval Funds in The Wall Street Journal
Simon Constable of The Wall Street Journal recently described the growing trend in product development in an article entitled, "What are Interval Funds?". Constable writes that interval funds typically invest in alternatives such as farmland and timberland which are not only illiquid but difficult for the individual investor...
-
04/12/2017
XA Investments Discusses Private
Equity with Financial Times FundFire Alts Magazine
The Financial Times FundFire Alts Magazine's recent article, "Private Equity Embraces Shift in Alts Sales to Advisors" addresses product development in private equity. Please click here for the article. Bob Kuppenheimer – XA Investments' Senior Advisor for Sales and Marketing, and Kimberly Flynn – Managing Director, Alternative...
-
02/15/2017
XA Investments Comments on Alternative
Income Opportunities in Financial Times FundFire Alts Magazine
In a recent article entitled, "Bain, Ares Moves Stoke Alts Fund Arms Race," the Financial Times FundFire Alts describes a new wave of products and partnerships in the increasingly active non-traded registered fund marketplace. The article is available here. Kimberly Flynn – Managing Director, Alternative Investments at XA Investments...
-
02/01/2017
XA Investments Discusses Growth in
Independent Channel with Financial Times FundFire Alts Magazine
The Financial Times FundFire Alts recently published an article describing the expansion of large private equity firms into the independent brokerage market. The article, "Blackstone Bounds into Indie Advisor Market" is available here. Product lineups are expanding and there is a wider menu of alternative options launched by...
-
05/11/2016
XMS Capital Partners Launches XA
Investments
XA INVESTMENTS HIRES SEASONED PRODUCT DEVELOPMENT PROFESSIONALS TO BUILD PLATFORM Chicago, IL (May 11, 2016) – XMS Capital Partners, LLC (XMS), a leading Midwest boutique investment bank, has announced the launch of XA Investments LLC (XAI) to provide innovative solutions to the asset management industry. The firm has hired...
- 08/22/2024 XAI Octagon Floating Rate & Alternative Income Trust Will Host Q2 2024 Quarterly Webinar on August 29, 2024
XAI Octagon Floating Rate & Alternative Income Trust (NYSE: XFLT) (the “Trust”) today announced that it plans to host the Trust’s Quarterly Webinar on August 29, 2024 at 11:00 am (Eastern Time).
- 06/10/2024 XAI Octagon Floating Rate & Alternative Income Trust Announces Agreement for Private Placement of Convertible Preferred Shares
XAI Octagon Floating Rate & Alternative Income Trust (the “Trust”) (NYSE: XFLT), a diversified, closed-end management investment company with an investment objective to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle, has entered into a Purchase Agreement with certain institutional investors for the purchase and sale of 1,800,000 shares of the Trust’s 6.95% Series II 2029 Convertible Preferred Shares due December 2029 (the “Convertible Preferred Shares”), liquidation preference $25.00 per share.
- 05/23/2024 XAI Octagon Floating Rate & Alternative Income Trust Will Host Q1 2024 Quarterly Webinar on May 30, 2024
XAI Octagon Floating Rate & Alternative Income Trust (NYSE: XFLT) (the “Trust”) today announced that it plans to host the Trust’s Quarterly Webinar on May 30, 2024 at 11:00 am (Eastern Time). Kimberly Flynn, President at XA Investments (“XAI”) will moderate the Q&A style webinar with Steven Perry, Vice President at XAI, and Lauren Law, Senior Portfolio Manager at Octagon Credit Investors.
- 02/21/2024 XAI Octagon Floating Rate & Alternative Income Trust Will Host Q4 2023 Quarterly Webinar on February 29, 2024
XAI Octagon Floating Rate & Alternative Income Trust (NYSE: XFLT) (the “Trust”) today announced that it plans to host the Trust’s Quarterly Webinar on February 29, 2024, at 11:00 am (Eastern Time). Kimberly Flynn, Managing Director at XA Investments (“XAI”) will moderate the Q&A style webinar with Steven Perry, Vice President at XAI, and Lauren Law, Senior Portfolio Manager at Octagon Credit Investors.
- 02/01/2024 XAI Octagon Floating Rate & Alternative Income Trust Announces Registered Direct Placement of Common Shares
XAI Octagon Floating Rate & Alternative Income Trust (the “Trust”) (NYSE: XFLT), a diversified, closed-end management investment company with an investment objective to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle, has entered into a Purchase Agreement with certain institutional investors for the purchase and sale of Common Shares in a registered direct placement pursuant to the Trust’s effective shelf registration statement filed with the SEC.
-
01/24/2024
XAI Octagon Floating Rate &
Alternative Income Term Trust Announces Shareholder Approval of Important
Proposals
CHICAGO, January 24, 2024 – XAI Octagon Floating Rate & Alternative Income Term Trust (the “Trust”) (NYSE: XFLT) announced that its shareholders have approved two important proposals at the reconvened special meeting of shareholders (the “Special Meeting”) ...
-
01/02/2024
XAI Octagon Floating Rate &
Alternative Income Term Trust Announces Portfolio Management Change
Chicago – January 2, 2024 – XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") (NYSE: XFLT), a diversified, closed-end management investment company with an investment objective to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle ...
-
12/19/2023
XAI Octagon Floating Rate &
Alternative Income Term Trust Adjourns Special Meeting of Shareholders to Permit
Further Solicitation of Proxies
CHICAGO, December 19, 2023 – XAI Octagon Floating Rate & Alternative Income Term Trust (the “Trust”) (NYSE: XFLT) announced today that its special meeting of shareholders (the “Special Meeting”) has been adjourned to January 24, 2024 at 10:00 a.m. Central time with respect to all proposals to allow more time for ...
-
11/20/2023
XAI Octagon Floating Rate &
Alternative Income Term Trust Will Host Q3 2023 Quarterly Webinar on November
30, 2023
November 20, 2023, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust (NYSE: XFLT) (the “Trust”) today announced that it plans to host the Trust’s Quarterly Webinar on November 30, 2023 at 10:30 am (Eastern Time). Kimberly Flynn, Managing Director at XA Investments (“XAI”) will moderate the Q&A style webinar with Steven Perry, Vice President...
-
11/07/2023
XAI Octagon Floating Rate &
Alternative Income Term Trust Announces Private Placement of Convertible
Preferred Shares
CHICAGO, Illinois – November 7, 2023 – XAI Octagon Floating Rate & Alternative Income Term Trust (the “Trust”) (NYSE: XFLT), a diversified, closed-end management investment company with an investment objective to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle, has entered...
-
10/26/2023
XAI Octagon Floating Rate &
Alternative Income Term Trust Announces Board Approval of Proposal to Become
Perpetual Fund and New Sub-Advisory Agreement with Octagon Credit
Investors
CHICAGO, October 26, 2023 – XAI Octagon Floating Rate & Alternative Income Term Trust (the “Trust”) (NYSE: XFLT), announced that the Trust’s Board of Trustees (the “Board”) has unanimously approved a proposal to eliminate the Trust’s termination date of December 31, 2029. The proposal, if approved by shareholders, will amend...
-
09/20/2023
XAI Octagon Floating Rate &
Alternative Income Term Trust Reaches $500 Million Total Managed Assets
Milestone
September 20, 2023, Chicago – XA Investments (“XAI”), a Chicago-based alternative asset manager, is pleased to announce that the XAI Octagon Floating Rate & Alternative Income Term Trust (NYSE: XFLT, the “Trust”) has surpassed $500 million in total managed assets. The Trust launched in September 2017 with $82 million in common assets and has executed several accretive follow-on equity...
-
08/10/2023
XAI Octagon Floating Rate &
Alternative Income Term Trust Will Host Q2 2023 Quarterly Webinar on August 22,
2023
August 10, 2023, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust (NYSE: XFLT) (the "Trust") today announced that it plans to host the Trust's Quarterly Webinar on August 22, 2023 at 11:00 am (Eastern Time). Kimberly Flynn, Managing Director at XA Investments ("XAI") will moderate the Q&A style webinar with...
-
05/09/2023
XAI Octagon Floating Rate &
Alternative Income Term Trust Will Host Q1 2023 Quarterly Webinar on May 25,
2023
May 9, 2023, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust (NYSE: XFLT) (the "Trust") today announced that it plans to host the Trust's Quarterly Webinar on May 25, 2023 at 12:00 pm (Eastern Time). Kimberly Flynn, Managing Director at XA Investments ("XAI") will moderate the Q&A style webinar with Steven...
-
02/21/2023
XAI Octagon Floating Rate &
Alternative Income Term Trust Will Host Q4 2022 Quarterly Webinar on March 2,
2023
February 21, 2023, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust (NYSE: XFLT) (the "Trust") today announced that it plans to host the Trust's Quarterly Webinar on March 2, 2023 at 11:00 am (Eastern Time). Robert Chenoweth, Vice President at XA Investments ("XAI") will moderate the Q&A style webinar with...
-
11/28/2022
XAI Octagon Floating Rate &
Alternative Income Term Trust Will Host Q3 2022 Quarterly Webinar on December 1,
2022
November 28, 2022, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust (NYSE: XFLT) (the "Trust") today announced that it plans to host the Trust's Quarterly Webinar on December 1, 2022 at 11:00 am (Eastern Time). Robert Chenoweth, Vice President at XA Investments ("XAI") will moderate the Q&A style webinar with...
-
09/27/2022
XAI Octagon Floating Rate &
Alternative Income Term Trust Celebrates 5th Anniversary
September 27, 2022, Chicago – XA Investments ("XAI"), a Chicago-based alternative asset manager, celebrates the 5th anniversary of the XAI Octagon Floating Rate & Alternative Income Term Trust (NYSE: XFLT) ("XFLT" or the "Trust"). Octagon Credit Investors, LLC ("Octagon") serves as the Trust's investment sub-adviser. The Trust...
-
07/01/2022
XAI Octagon Floating Rate &
Alternative Income Term Trust Closes Private Placement of Convertible Preferred
Shares and Registered Direct Placement of Common Shares
CHICAGO, Illinois – June 30, 2022 – XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") (NYSE: XFLT), a diversified, closed-end management investment company with an investment objective to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle, has closed...
-
06/28/2022
XAI Octagon Floating Rate &
Alternative Income Term Trust Announces Private Placement of Convertible
Preferred Shares and Registered Direct Placement of Common Shares
CHICAGO, Illinois – June 28, 2022 – XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") (NYSE: XFLT), a diversified, closed-end management investment company with an investment objective to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle, has entered...
-
05/05/2022
XAI Octagon Floating Rate &
Alternative Income Term Trust Will Host Q1 2022 Quarterly Webinar on May 26,
2022
May 5, 2022, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust (NYSE: XFLT) (the "Trust") today announced that it plans to host the Trust's Quarterly Webinar on May 26, 2022 at 11:00 am (Eastern Time). The Trust will release earnings for the three-month period ending March 31, 2022. Robert Chenoweth, Vice President...
-
09/08/2021
XAI Octagon Floating Rate &
Alternative Income Term Trust Announces Direct Offering of Preferred Shares
CHICAGO, Illinois – September 8, 2021 – XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") (NYSE: XFLT), a diversified, closed-end management investment company with an investment objective to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle,...
-
08/12/2021
XAI Octagon Floating Rate &
Alternative Income Term Trust Will Host Q2 2021 Quarterly Webinar on August 17,
2021
August 12, 2021, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") today announced that it plans to host the Trust's Quarterly Webinar on August 17, 2021 at 11:00 am (Eastern Time). The Trust will discuss the three-month period ending June 30, 2021. Robert Chenoweth, Vice President...
-
07/23/2021
XAI Octagon Floating Rate &
Alternative Income Term Trust Closes Public Offering of Common Shares
CHICAGO, Illinois – July 23, 2021 – XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") (NYSE: XFLT), a diversified, closed-end management investment company with an investment objective to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle, has closed...
-
07/21/2021
XAI Octagon Floating Rate &
Alternative Income Term Trust Prices Public Offering of Common Shares
CHICAGO, Illinois – July 21, 2021 – XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") (NYSE: XFLT), a diversified, closed-end management investment company with an investment objective to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle, has priced...
-
07/20/2021
XAI Octagon Floating Rate &
Alternative Income Term Trust Commences Public Offering of Common Shares
CHICAGO, Illinois – July 20, 2021 – XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") (NYSE: XFLT), a diversified, closed-end management investment company with an investment objective to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle, has announced...
-
05/20/2021
XAI Octagon Floating Rate &
Alternative Income Term Trust Will Host Q1 2021 Quarterly Webinar on May 27,
2021
May 20, 2021, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") today announced that it plans to host the Trust's Quarterly Webinar on May 27, 2021 at 11:00 am (Eastern Time). The Trust will discuss the three-month period ending March 31, 2021. Robert Chenoweth, Vice President of Internal...
-
03/23/2021
XAI Octagon Floating Rate &
Alternative Income Term Trust Prices Public Offering of Preferred Shares
CHICAGO, Illinois – March 23, 2021 – XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") (NYSE: XFLT), a diversified, closed-end management investment company with an investment objective to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle, has...
-
03/23/2021
XAI Octagon Floating Rate &
Alternative Income Term Trust Commences Public Offering of Preferred Shares
CHICAGO, Illinois – March 23, 2021 – XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") (NYSE: XFLT), a diversified, closed-end management investment company with an investment objective to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle, has...
-
03/01/2021
XAI Octagon Floating Rate &
Alternative Income Term Trust Closes Public Offering of Common Shares
CHICAGO, Illinois – March 1, 2021 – XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") (NYSE: XFLT), a diversified, closed-end management investment company with an investment objective to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle, has closed...
-
02/25/2021
XAI Octagon Floating Rate &
Alternative Income Term Trust Prices Public Offering of Common Shares
CHICAGO, Illinois – February 25, 2021 – XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") (NYSE: XFLT), a diversified, closed-end management investment company with an investment objective to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle, has...
-
02/24/2021
XAI Octagon Floating Rate &
Alternative Income Term Trust Commences Public Offering of Common Shares
CHICAGO, Illinois – February 24, 2021 – XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") (NYSE: XFLT), a diversified, closed-end management investment company with an investment objective to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle, has...
-
10/01/2020
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Distribution of $0.073 per
Share and Announces Change in Non-Fundamental Investment Policy
October 1, 2020, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's common shares, payable on November 2, 2020 to common shareholders of record as of October 15, 2020, as noted below. The amount of the distribution...
-
04/29/2020
XAI Octagon Floating Rate &
Alternative Income Term Trust Announces that Annual Meeting of Shareholders
Scheduled for May 18, 2020 Will Be a Telephonic Meeting
April 29, 2020, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") (NYSE: XFLT), a diversified, closed-end management investment company with an investment objective to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle, announced today...
-
04/01/2020
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Distribution of $0.060 per
Share
April 1, 2020, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.060 per share on the Trust's common shares, payable on May 1, 2020 to common shareholders of record as of April 15, 2020, as noted below. The amount of the distribution...
-
03/02/2020
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Distribution of $0.073 per
Share and Announces Principal Financial Officer Change
March 2, 2020, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's common shares, payable on April 1, 2020 to common shareholders of record as of March 17, 2020, as noted below. The amount of the distribution...
-
02/14/2020
XAI Octagon Floating Rate &
Alternative Income Term Trust Announces Portfolio Management Change
CHICAGO, Illinois – February 14, 2020 – XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") (NYSE: XFLT), a diversified, closed-end management investment company with an investment objective to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle,...
-
11/19/2019
XAI Octagon Floating Rate &
Alternative Income Term Trust Closes Public Offering of Common Shares
CHICAGO, Illinois - November 19, 2019 - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") (NYSE: XFLT), a diversified, closed-end management investment company with an investment objective to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle, has...
-
11/15/2019
XAI Octagon Floating Rate &
Alternative Income Term Trust Prices Public Offering of Common Shares
CHICAGO, Illinois - November 15, 2019 - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") (NYSE: XFLT), a diversified, closed-end management investment company with an investment objective to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle, has...
-
11/14/2019
XAI Octagon Floating Rate &
Alternative Income Term Trust Commences Public Offering of Common Shares
CHICAGO, Illinois - November 14, 2019 - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") (NYSE: XFLT), a diversified, closed-end management investment company with an investment objective to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle, has...
-
05/01/2019
XAI Octagon Floating Rate &
Alternative Income Term Trust Increases its Monthly Distribution to $0.073 per
Share
May 1, 2019, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's common shares, payable on June 3, 2019 to common shareholders of record as of May 15, 2019, as noted below. The amount of the distribution represents...
-
07/09/2018
Barron's Features XA Investments in
New Article about Closed-End Funds Offering CLO Access
In his recent article entitled "Where to Go for Double-Digit Yields," Randall Forsyth explores the high-yielding, but lesser-known, asset class of collateralized loan obligations ("CLOs"). Forsyth explains that CLOs are comprised of leveraged loans, making them similar to high yield bonds. However, he notes that CLOs have two...
-
12/01/2017
Reuters Article on Term Trusts
Features Kimberly Flynn and XFLT
In the Reuters article entitled "LPC: Loan market turns to term trust structure as investors search for yield," Kristen Haunss discusses continued interest in leveraged loans as well as closed-end term trusts which offer a set maturity date and more favorable trading history than perpetual closed-end funds. She suggests that...
-
11/17/2017
XA Investments LLC and Octagon Credit
Investors, LLC ring the NYSE Opening Bell®
New York, NY On November 20th, the New York Stock Exchange welcomes executives and guests of XA Investments LLC and Octagon Credit Investors, LLC to celebrate the XAI Octagon Floating Rate & Alternative Income Term Trust (NYSE:XFLT). Watch Video...
-
11/01/2017
XAI Octagon Floating Rate &
Alternative Income Term Trust Announces Initial Distribution
November 1, 2017, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") is pleased to announce the declaration of its initial monthly distribution of $0.0690 per share on the Trust's common shares, payable on December 1, 2017 to common shareholders of record as of November 15, 2017, as noted...
-
09/27/2017
Bloomberg reports on the Launch of the
XAI Octagon Floating Rate & Alternative Income Term Trust (XFLT)
Bloomberg's article, "It Just Got Easier for Mom and Pop to Invest in the CLO Boom" covers the launch and listing of XFLT on the New York Stock Exchange. XA Investments' new alternative closed-end fund, XFLT, will buy collateralized loan obligations (CLOs), further opening access to retail investors to the securities that have...
-
09/27/2017
XAI Octagon Floating Rate &
Alternative Income Term Trust (XFLT) Prices Initial Public Offering
Chicago, IL, September 27, 2017 – XA Investments ("XAI") announces that XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has priced its successful initial public offering. The Trust seeks attractive total return with an emphasis on income generation across multiple stages of the credit cycle...
-
09/05/2017
XA Investments Announces Commencement
of Initial Public Offering of XAI Octagon Floating Rate & Alternative Income
Term Trust (XFLT)
Chicago, IL, September 5, 2017 – XA Investments LLC ("XAI"), a new investment advisory firm dedicated to providing innovative alternative investment strategies for individual investors, today announced the commencement of the initial public offering of its first closed-end fund, XAI Octagon Floating Rate & Alternative Income...
- 09/03/2024 XAI Octagon Floating Rate & Alternative Income Trust Declares its Monthly Common Shares Distribution of $0.085 per Share
September 3, 2024, Chicago – XAI Octagon Floating Rate & Alternative Income Trust (the “Trust”) has declared its regular monthly distribution of $0.085 per share on the Trust’s common shares (NYSE: XFLT), payable on October 1, 2024, to common shareholders of record as of September 17, 2024...
- 08/01/2024 XAI Octagon Floating Rate & Alternative Income Trust Declares its Monthly Common Shares Distribution of $0.085 per Share
August 1, 2024, Chicago – XAI Octagon Floating Rate & Alternative Income Trust (the “Trust”) has declared its regular monthly distribution of $0.085 per share on the Trust’s common shares (NYSE: XFLT), payable on September 3, 2024, to common shareholders of record as of August 15, 2024...
- 07/01/2024 XAI Octagon Floating Rate & Alternative Income Trust Declares its Monthly Common Shares Distribution and Quarterly Preferred Shares Dividend
July 1, 2024, Chicago – XAI Octagon Floating Rate & Alternative Income Trust (the “Trust”) has declared its regular monthly distribution of $0.085 per share of the Trust’s common shares (NYSE: XFLT). The Trust also declared preferred dividends for the quarter of $0.40625 per share of the Trust’s 6.50% Series 2026 Term Preferred Shares (NYSE: XFLTPRA).
- 06/03/2024 XAI Octagon Floating Rate & Alternative Income Trust Declares its Monthly Common Shares Distribution of $0.085 per Share
June 3, 2024, Chicago – XAI Octagon Floating Rate & Alternative Income Trust (the “Trust”) has declared its regular monthly distribution of $0.085 per share on the Trust’s common shares (NYSE: XFLT), payable on July 1, 2024, to common shareholders of record as of June 17, 2024, as noted below. The amount of the distribution represents no change from the previous month's distribution amount of $0.085 per share
- 05/01/2024 XAI Octagon Floating Rate & Alternative Income Trust Declares its Monthly Common Shares Distribution of $0.085 per Share
May 1, 2024, Chicago – XAI Octagon Floating Rate & Alternative Income Trust (the “Trust”) has declared its regular monthly distribution of $0.085 per share on the Trust’s common shares (NYSE: XFLT), payable on June 3, 2024, to common shareholders of record as of May 16, 2024...
- 04/01/2024 XAI Octagon Floating Rate & Alternative Income Trust Declares its Monthly Common Shares Distribution and Quarterly Preferred Shares Dividend
April 1, 2024, Chicago – XAI Octagon Floating Rate & Alternative Income Trust (the “Trust”) has declared its regular monthly distribution of $0.085 per share of the Trust’s common shares (NYSE: XFLT). The Trust also declared preferred dividends for the quarter of $0.40625 per share of the Trust’s 6.50% Series 2026 Term Preferred Shares (NYSE: XFLTPRA).
- 03/01/2024 XAI Octagon Floating Rate & Alternative Income Trust Declares its Monthly Common Shares Distribution of $0.085 per Share
March 1, 2024, Chicago – XAI Octagon Floating Rate & Alternative Income Trust (the “Trust”) has declared its regular monthly distribution of $0.085 per share on the Trust’s common shares (NYSE: XFLT), payable on April 1, 2024, to common shareholders of record as of March 15, 2024, as noted below.
-
02/01/2024
XAI Octagon Floating Rate &
Alternative Income Trust Declares its Monthly Common Shares Distribution of
$0.085 per Share
February 1, 2024, Chicago – XAI Octagon Floating Rate & Alternative Income Trust (the “Trust”) has declared its regular monthly distribution of $0.085 per share on the Trust’s common shares (NYSE: XFLT), payable on March 1, 2024, to common shareholders of record as of February 15, 2024, as noted below. The amount...
-
01/02/2024
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Common Shares Distribution
and Quarterly Preferred Shares Dividend
January 2, 2024, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust (the “Trust”) has declared its regular monthly distribution of $0.085 per share of the Trust’s common shares (NYSE: XFLT). The Trust also declared preferred dividends for the...
-
12/01/2023
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Common Shares Distribution of
$0.085 per Share
December 1, 2023, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust (the “Trust”) has declared its regular monthly distribution of $0.085 per share on the Trust’s common shares (NYSE: XFLT), payable on December 28, 2023, to common shareholders of record as of December 15, 2023, as noted below. The amount...
-
11/01/2023
XAI Octagon Floating Rate &
Alternative Income
Term Trust Declares its Monthly Common
Shares Distribution of $0.085 per Share
November 1, 2023, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust (the “Trust”) has declared its regular monthly distribution of $0.085 per share on the Trust’s common shares (NYSE: XFLT), payable on December 1, 2023, to common shareholders of record as of November 15, 2023, as noted below. The amount...
-
10/02/2023
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Common Shares Distribution
and Quarterly Preferred Shares Dividend
October 2, 2023, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust (the “Trust”) has declared its regular monthly distribution of $0.085 per share of the Trust’s common shares (NYSE: XFLT). The Trust also declared preferred dividends for the quarter of $0.40625 per share of the Trust’s...
-
09/01/2023
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its
Monthly Common Shares Distribution of $0.085 per Share
September 1, 2023, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust (the “Trust”) has declared its regular monthly distribution of $0.085 per share on the Trust’s common shares (NYSE: XFLT), payable on October 2, 2023, to common shareholders of record as of September 15, 2023, as noted below. The amount...
-
08/01/2023
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Common Shares Distribution of
$0.085 per Share
August 1, 2023, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.085 per share on the Trust's common shares (NYSE: XFLT), payable on September 1, 2023, to common shareholders of record as of August 15, 2023, as noted below. The amount of the...
-
07/03/2023
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Common Shares Distribution
and Quarterly Preferred Shares Dividend
July 3, 2023, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.085 per share of the Trust's common shares (NYSE: XFLT). The Trust also declared preferred dividends for the quarter of $0.40625 per share of the Trust's 6.50% Series 2026 Term Preferred...
-
06/01/2023
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Common Shares Distribution of
$0.085 per Share
June 1, 2023, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.085 per share on the Trust's common shares (NYSE: XFLT), payable on July 3, 2023, to common shareholders of record as of June 15, 2023, as noted below. The amount of the distribution...
-
05/01/2023
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Common Shares Distribution of
$0.085 per Share
May 1, 2023, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.085 per share on the Trust's common shares (NYSE: XFLT), payable on June 1, 2023, to common shareholders of record as of May 16, 2023, as noted below. The amount of the distribution...
-
04/03/2023
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Common Shares Distribution
and Quarterly Preferred Shares Dividend
April 3, 2023, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.073 per share of the Trust's common shares (NYSE: XFLT). The Trust also declared preferred dividends for the quarter of $0.40625 per share of the Trust's 6.50% Series 2026 Term...
-
03/01/2023
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Common Shares Distribution of
$0.073 per Share
March 1, 2023, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's common shares (NYSE: XFLT), payable on April 3, 2023 to common shareholders of record as of March 15, 2023, as noted below. The amount of the distribution...
-
02/01/2023
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Common Shares Distribution of
$0.073 per Share
February 1, 2023, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's common shares (NYSE: XFLT), payable on March 1, 2023 to common shareholders of record as of February 15, 2023, as noted below. The amount of the...
-
01/03/2023
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Common Shares Distribution
and Quarterly Preferred Shares Dividend
January 3, 2023, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.073 per share of the Trust's common shares (NYSE: XFLT). The Trust also declared preferred dividends for the quarter of $0.40625 per share of the Trust's 6.50% Series 2026 Term...
-
12/01/2022
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Common Shares Distribution of
$0.073 per Share
December 1, 2022, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's common shares (NYSE: XFLT), payable on December 30, 2022 to common shareholders of record as of December 15, 2022, as noted below. The amount of...
-
11/01/2022
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Common Shares Distribution of
$0.073 per Share
November 1, 2022, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's common shares (NYSE: XFLT), payable on December 1, 2022 to common shareholders of record as of November 15, 2022, as noted below. The amount of the...
-
10/03/2022
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Common Shares Distribution
and Quarterly Preferred Shares Dividend
October 3, 2022, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.073 per share of the Trust's common shares (NYSE: XFLT). The Trust also declared preferred dividends for the quarter of $0.40625 per share of the Trust's 6.50% Series 2026 Term...
-
09/01/2022
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Common Shares Distribution of
$0.073 per Share
September 1, 2022, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's common shares (NYSE: XFLT), payable on October 3, 2022 to common shareholders of record as of September 16, 2022, as noted below. The amount of...
-
08/01/2022
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Common Shares Distribution of
$0.073 per Share
August 1, 2022, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's common shares (NYSE: XFLT), payable on September 1, 2022 to common shareholders of record as of August 15, 2022, as noted below. The amount of the...
-
07/01/2022
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Common Shares Distribution
and Quarterly Preferred Shares Dividend
July 1, 2022, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.073 per share of the Trust's common shares (NYSE: XFLT). The Trust also declared preferred dividends for the quarter of $0.40625 per share of the Trust's 6.50% Series 2026 Term Preferred...
-
06/01/2022
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Common Shares Distribution of
$0.073 per Share
June 1, 2022, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's common shares (NYSE: XFLT), payable on July 1, 2022 to common shareholders of record as of June 15, 2022, as noted below. The amount of the distribution...
-
05/02/2022
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Common Shares Distribution of
$0.073 per Share
May 2, 2022, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's common shares (NYSE: XFLT), payable on June 1, 2022 to common shareholders of record as of May 16, 2022, as noted below. The amount of the distribution...
-
04/01/2022
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Common Shares Distribution
and Quarterly Preferred Shares Dividend
April 1, 2022, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.073 per share of the Trust's common shares (NYSE: XFLT). The Trust also declared preferred dividends for the quarter of $0.40625 per share of the Trust's 6.50% Series 2026 Term...
-
03/01/2022
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Common Shares Distribution of
$0.073 per Share
March 1, 2022, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's common shares (NYSE: XFLT), payable on April 1, 2022 to common shareholders of record as of March 15, 2022, as noted below. The amount of the distribution...
-
02/01/2022
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Common Shares Distribution of
$0.073 per Share
February 1, 2022, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's common shares (NYSE: XFLT), payable on March 1, 2022 to common shareholders of record as of February 15, 2022, as noted below. The amount of the...
-
01/03/2022
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Common Shares Distribution
and Quarterly Preferred Shares Dividend
January 3, 2022, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.073 per share of the Trust's common shares (NYSE: XFLT). The Trust also declared preferred dividends for the quarter of $0.40625 per share of the Trust's 6.50% Series 2026 Term...
-
12/01/2021
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Common Shares Distribution of
$0.073 per Share
December 1, 2021, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's common shares (NYSE: XFLT), payable on December 31, 2021 to common shareholders of record as of December 15, 2021, as noted below. The amount of...
-
11/01/2021
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Common Shares Distribution of
$0.073 per Share
November 1, 2021, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's common shares (NYSE: XFLT), payable on December 1, 2021 to common shareholders of record as of November 16, 2021, as noted below. The amount of the...
-
10/01/2021
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Common Shares Distribution
and Quarterly Preferred Shares Dividend
October 1, 2021, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.073 per share of the Trust's common shares (NYSE: XFLT). The Trust also declared preferred dividends for the third quarter of $0.40625 per share of the Trust's 6.50% Series 2026...
-
09/01/2021
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Common Shares Distribution of
$0.073 per Share
September 1, 2021, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's common shares (NYSE: XFLT), payable on October 1, 2021 to common shareholders of record as of September 15, 2021, as noted below. The amount of...
-
08/02/2021
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Common Shares Distribution of
$0.073 per Share
August 2, 2021, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's common shares (NYSE: XFLT), payable on September 1, 2021 to common shareholders of record as of August 17, 2021, as noted below. The amount of the...
-
07/01/2021
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Common Shares Distribution
and Quarterly Preferred Shares Dividend
July 1, 2021, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust (the "Trust") has declared its regular monthly distribution of $0.073 per share of the Trust's common shares (NYSE: XFLT). The Trust also declared preferred dividends for the second quarter of $0.5597 per share of the Trust's 6.50% Series 2026...
-
06/01/2021
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Distribution of $0.073 per
Share
June 1, 2021, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's common shares, payable on July 1, 2021 to common shareholders of record as of June 15, 2021, as noted below. The amount of the distribution...
-
05/03/2021
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Distribution of $0.073 per
Share
May 3, 2021, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's common shares, payable on June 1, 2021 to common shareholders of record as of May 18, 2021, as noted below. The amount of the distribution represents...
-
04/01/2021
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Distribution of $0.073 per
Share
April 1, 2021, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's common shares, payable on May 3, 2021 to common shareholders of record as of April 15, 2021, as noted below. The amount of the distribution...
-
03/01/2021
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Distribution of $0.073 per
Share
March 1, 2021, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's common shares, payable on April 1, 2021 to common shareholders of record as of March 16, 2021, as noted below. The amount of the distribution...
-
02/01/2021
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Distribution of $0.073 per
Share
February 1, 2021, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's common shares, payable on March 1, 2021 to common shareholders of record as of February 17, 2021, as noted below. The amount of the distribution...
-
01/04/2021
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Distribution of $0.073 per
Share
January 4, 2021, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's common shares, payable on February 1, 2021 to common shareholders of record as of January 15, 2021, as noted below. The amount of the distribution...
-
12/01/2020
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Distribution of $0.073 per
Share
December 1, 2020, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's common shares, payable on December 31, 2020 to common shareholders of record as of December 15, 2020, as noted below. The amount of the...
-
11/02/2020
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Distribution of $0.073 per
Share
November 2, 2020, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's common shares, payable on December 1, 2020 to common shareholders of record as of November 17, 2020, as noted below. The amount of the...
-
10/01/2020
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Distribution of $0.073 per
Share and Announces Change in Non-Fundamental Investment Policy
October 1, 2020, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's common shares, payable on November 2, 2020 to common shareholders of record as of October 15, 2020, as noted below. The amount of the distribution...
-
09/01/2020
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Distribution of $0.060 per
Share
September 1, 2020, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.060 per share on the Trust's common shares, payable on October 1, 2020 to common shareholders of record as of September 15, 2020, as noted below. The amount of the...
-
08/03/2020
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Distribution of $0.060 per
Share
August 3, 2020, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.060 per share on the Trust's common shares, payable on September 1, 2020 to common shareholders of record as of August 18, 2020, as noted below. The amount of the distribution...
-
07/01/2020
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Distribution of $0.060 per
Share
July 1, 2020, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.060 per share on the Trust's common shares, payable on August 3, 2020 to common shareholders of record as of July 15, 2020, as noted below. The amount of the distribution...
-
06/01/2020
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Distribution of $0.060 per
Share
June 1, 2020, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.060 per share on the Trust's common shares, payable on July 1, 2020 to common shareholders of record as of June 16, 2020, as noted below. The amount of the distribution...
-
05/01/2020
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Distribution of $0.060 per
Share
May 1, 2020, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.060 per share on the Trust's common shares, payable on June 1, 2020 to common shareholders of record as of May 15, 2020, as noted below. The amount of the distribution represents...
-
04/01/2020
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Distribution of $0.060 per
Share
April 1, 2020, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.060 per share on the Trust's common shares, payable on May 1, 2020 to common shareholders of record as of April 15, 2020, as noted below. The amount of the distribution...
-
03/02/2020
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares its Monthly Distribution of $0.073 per
Share and Announces Principal Financial Officer Change
March 2, 2020, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's common shares, payable on April 1, 2020 to common shareholders of record as of March 17, 2020, as noted below. The amount of the distribution...
-
02/03/2020
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares Monthly Distribution of $0.073 per
Share
February 3, 2020, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0730 per share on the Trust's common shares, payable on March 2, 2020 to common shareholders of record as of February 19, 2020, as noted below. The amount of the distribution...
-
01/02/2020
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares Monthly Distribution of $0.073 per
Share
January 2, 2020, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0730 per share on the Trust's common shares, payable on February 3, 2020 to common shareholders of record as of January 16, 2020, as noted below. The amount of the...
-
12/02/2019
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares Monthly Distribution of $0.073 per
Share
December 2, 2019, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0730 per share on the Trust's common shares, payable on December 31, 2019 to common shareholders of record as of December 16, 2019, as noted below. The amount of the...
-
11/01/2019
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares Monthly Distribution of $0.073 per
Share
November 1, 2019, Chicago –XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0730 per share on the Trust's common shares, payable on December 2, 2019 to common shareholders of record as of November 15, 2019, as noted below. The amount of the...
-
10/01/2019
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares Monthly Distribution of $0.073 per
Share
October 1, 2019, Chicago - XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0730 per share on the Trust's common shares, payable on November 1, 2019 to common shareholders of record as of October 15, 2019, as noted below. The amount of the distribution...
-
09/03/2019
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares Monthly Distribution of $0.073 per
Share
September 3, 2019, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0730 per share on the Trust's common shares, payable on October 1, 2019 to common shareholders of record as of September 16, 2019, as noted below. The amount of the...
-
08/01/2019
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares Monthly Distribution of $0.073 per
Share
August 1, 2019, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0730 per share on the Trust's common shares, payable on September 3, 2019 to common shareholders of record as of August 15, 2019, as noted below. The amount of the distribution...
-
07/01/2019
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares Monthly Distribution of $0.073 per
Share
July 1, 2019, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0730 per share on the Trust's common shares, payable on August 1, 2019 to common shareholders of record as of July 16, 2019, as noted below. The amount of the distribution...
-
06/03/2019
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares Monthly Distribution of $0.073 per
Share
June 3, 2019, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0730 per share on the Trust's common shares, payable on July 1, 2019 to common shareholders of record as of June 17, 2019, as noted below. The amount of the distribution...
-
05/01/2019
XAI Octagon Floating Rate &
Alternative Income Term Trust Increases its Monthly Distribution to $0.073 per
Share
May 1, 2019, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.073 per share on the Trust's common shares, payable on June 3, 2019 to common shareholders of record as of May 15, 2019, as noted below. The amount of the distribution represents...
-
04/01/2019
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares Monthly Distribution
April 1, 2019, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0690 per share on the Trust's common shares, payable on May 1, 2019 to common shareholders of record as of April 16, 2019, as noted below. The amount of the distribution...
-
03/01/2019
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares Monthly Distribution
March 1, 2019, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0690 per share on the Trust's common shares, payable on April 1, 2019 to common shareholders of record as of March 15, 2019, as noted below. The amount of the distribution...
-
02/01/2019
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares Monthly Distribution
February 1, 2019, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0690 per share on the Trust's common shares, payable on March 1, 2019 to common shareholders of record as of February 15, 2019, as noted below. The amount of the distribution...
-
01/02/2019
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares Monthly Distribution
January 2, 2019, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0690 per share on the Trust's common shares, payable on February 1, 2019 to common shareholders of record as of January 15, 2019, as noted below. The amount of the distribution...
-
12/03/2018
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares Monthly Distribution
December 3, 2018, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0690 per share on the Trust's common shares, payable on December 31, 2018 to common shareholders of record as of December 17, 2018, as noted below. The amount of the...
-
11/01/2018
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares Monthly Distribution
November 1, 2018, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0690 per share on the Trust's common shares, payable on December 3, 2018 to common shareholders of record as of November 15, 2018, as noted below. The amount of the...
-
10/01/2018
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares Monthly Distribution
October 1, 2018, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0690 per share on the Trust's common shares, payable on November 1, 2018 to common shareholders of record as of October 15, 2018, as noted below. The amount of the distribution...
-
09/04/2018
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares Monthly Distribution
September 4, 2018, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0690 per share on the Trust's common shares, payable on October 1, 2018 to common shareholders of record as of September 17, 2018, as noted below. The amount of the...
-
08/01/2018
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares Monthly Distribution
August 1, 2018, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0690 per share on the Trust's common shares, payable on September 4, 2018 to common shareholders of record as of August 15, 2018, as noted below. The amount of the distribution...
-
07/02/2018
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares Monthly Distribution
July 2, 2018, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0690 per share on the Trust's common shares, payable on August 1, 2018 to common shareholders of record as of July 16, 2018, as noted below. The amount of the distribution...
-
06/01/2018
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares Monthly Distribution
June 1, 2018, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0690 per share on the Trust's common shares, payable on July 2, 2018 to common shareholders of record as of June 15, 2018, as noted below. The amount of the distribution...
-
05/01/2018
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares Monthly Distribution
May 1, 2018, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0690 per share on the Trust's common shares, payable on June 1, 2018 to common shareholders of record as of May 15, 2018, as noted below. The amount of the distribution...
-
04/02/2018
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares Monthly Distribution
April 2, 2018, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0690 per share on the Trust's common shares, payable on May 1, 2018 to common shareholders of record as of April 16, 2018, as noted below. The amount of the distribution...
-
03/01/2018
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares Monthly Distribution
March 1, 2018, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0690 per share on the Trust's common shares, payable on April 2, 2018 to common shareholders of record as of March 15, 2018, as noted below. The amount of the distribution...
-
02/01/2018
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares Monthly Distribution
February 1, 2018, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0690 per share on the Trust's common shares, payable on March 1, 2018 to common shareholders of record as of February 15, 2018, as noted below. The amount of the distribution...
-
01/02/2018
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares Monthly Distribution
January 2, 2018, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0690 per share on the Trust's common shares, payable on February 1, 2018 to common shareholders of record as of January 16, 2018, as noted below. The amount of the distribution...
-
12/01/2017
XAI Octagon Floating Rate &
Alternative Income Term Trust Declares Monthly Distribution
December 1, 2017, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") has declared its regular monthly distribution of $0.0690 per share on the Trust's common shares, payable on December 29, 2017 to common shareholders of record as of December 15, 2017, as noted below. The amount of the...
-
11/01/2017
XAI Octagon Floating Rate &
Alternative Income Term Trust Announces Initial Distribution
November 1, 2017, Chicago – XAI Octagon Floating Rate & Alternative Income Term Trust ("XFLT" or the "Trust") is pleased to announce the declaration of its initial monthly distribution of $0.0690 per share on the Trust's common shares, payable on December 1, 2017 to common shareholders of record as of November 15, 2017, as noted...