XAI CLO & Income Opportunities Fund
Class I: OCTIX Class A: OCTAXFund Overview
The Fund is a continuously offered closed-end interval fund with monthly distributions and quarterly repurchases. Under normal market conditions, the Fund will invest at least 80% of its net assets in securities of collateralized loan obligation entities (“CLOs”), including CLO debt tranches and CLO equity. The Fund will not invest more than 20% of its Managed Assets in CLO equity. The Fund will purchase CLO Investments in the primary and secondary markets.
Objective
The investment objective of the Fund is to provide high income and total return. There can be no assurance that the Fund will achieve its investment objective, and you could lose some or all of your investment.
Adviser
XA Investments LLC
Sub-Adviser
Rockford Tower Asset Management, L.L.C.
A wholly owned subsidiary of King Street Capital Management, L.P.
Snapshot (as of 08/13/2026)
| Class I | Class A | |
| NAV | $24.01 | $23.98 |
| Expense Ratio2 | 2.78% / 2.18% (Gross/Net) | 3.63% / 3.03% (Gross/Net) |
| Investment Minimum | $10,000 | $2,500 |
| Tax Form | 1099 | 1099 |
| CUSIP | 67578T206 | 67578T107 |
| Class I | Class A | |
| Ticker | OCTIX | OCTAX |
| Distribution Frequency | Monthly | Monthly |
| Repurchase Frequency | Quarterly | Quarterly |
| Total Managed Assets | $51,860,553.93 | |
| Inception Date | 11/4/2024 | 12/2/2024 |
| Current Distribution Rate1 | 7.62% | 5.66% |
Footnotes are listed at the bottom of the page.
Management
Rockford Tower Asset Management, L.L.C. is a wholly owned subsidiary of King Street Capital Management, L.P. (“King Street”) and an affiliate of Rockford Tower Capital Management (“Rockford Tower”). King Street is a leading global alternative asset manager with $30 billion in assets under management as of 6/30/2026 and has a 30+ year track record investing across public and private credit markets. Rockford Tower, King Street’s dedicated CLO, CBO and SMA platform, was formed in 2017. Rockford Tower has over $13 billion of assets under management as of 6/30/2026 across 19 U.S. CLOs and 10 European CLOs, one CBO transaction and one SMA. In addition, Rockford Tower has traded over $99 billion of loans as of 12/31/2025.
About Rockford Tower
Rockford Tower employs a dynamic, integrated one-team approach, investing across asset classes, sectors, and geographies with a focus on identifying dislocations and executing with conviction. The firm operates with a continuous emphasis on downside protection and maintaining uncorrelated risk/reward opportunities for investors.
Team
Rockford Tower benefits from King Street’s broader platform, which includes more than 240 employees across eight offices, including over 80 investment professionals. The firm’s seven partners average 29 years of industry experience, providing significant depth across its public and private credit capabilities.
Portfolio Management
The Rockford Tower portfolio management team dynamically manages the Fund’s portfolio based on its evolving credit market outlook. The team applies a flexible approach across public and private markets while seeking to identify attractive opportunities throughout the capital structure.
- Seeks to capitalize on market dislocations and relative-value opportunities
- Employs flexible capital deployment across asset classes and the capital structure
- Focuses on downside protection and attractive risk-adjusted returns
The Fund will primarily invest in CLO debt securities and will invest to a limited extent in CLO equity securities. Rockford Tower and XAI expect the Fund’s CLO portfolio to perform well in a higher interest rate environment and believe CLO debt is an attractive investment opportunity. The Fund's assets are managed opportunistically primarily within the following investment categories*:
- CLO debt rated BB and above
- CLO equity
- Other floating-rate debt securities
The Fund intends to invest primarily in below investment grade credit instruments but may invest without limitation in investment grade credit instruments. Credit instruments are considered below investment grade quality if rated below Baa3- by Moody’s or below BBB- by S&P or Fitch or, if unrated, judged to be below investment grade quality by Rockford Tower.
Rockford Tower is focused on active management and risk management over market cycles. Rockford Tower shares King Street’s investment philosophy across characteristics:
- Emphasis on capital preservation and downside protection
- Seek to maintain a diversified and conservative risk profile
- Focus on par build as a core objective, which we believe benefits both debt and equity investors
- Prioritize active risk management and portfolio optimization, constantly seeking to improve and enhance the credit quality and overall risk profile over time
- Flexible, positioning portfolios to navigate volatile markets, which may put the Fund in a strong position to capitalize on market dislocations as they occur
Young Choi
Partner, Portfolio Manager
Mr. Choi is a Partner and the Global Head of Trading at King Street and the Portfolio Manager of Rockford Tower Capital Management. He is based in New York and is a member of the Management Committee, Global Investment Committee, U.S. and European CLO Investment Committees, Risk Committee and Pricing Committee.
Prior to joining King Street in 2006, Mr. Choi worked at Citadel Investment Group as a Credit Analyst in the Distressed/High Yield Group and was Portfolio Manager of the firm’s $2 billion U.S. leveraged loan and CLO portfolio. Prior to that, Mr. Choi consulted at Bain & Co.
Mr. Choi received a B.A. summa cum laude in Economics and a B.S.E. in Electrical Engineering from Duke University.
Terry Ing
Partner, Portfolio Manager
Mr. Ing is a Partner and Portfolio Manager for Rockford Tower’s long-only credit SMA platform and Head of U.S. Research. He splits his time between the Menlo Park and New York offices. He is a member of the Management Committee, US CLO Investment Committee, Conflicts Committee and Responsible Investment Committee.
Prior to joining King Street in 2024, Mr. Ing worked at KKR as a Portfolio Manager and Head of their U.S. Leveraged Credit Research and was a member of the Leverage Credit Investment Committee. Before joining KKR, he was an Executive Vice President and Portfolio Manager at PIMCO, where he focused on the credit hedge fund.
Mr. Ing was an adjunct professor at Pepperdine University’s Graziadio Business School and serves on the Board of Directors of the REDF Impact Investing Fund, a non-profit certified Community Development Financial Institution (CDFI).
Mr. Ing received a B.S. in Business Administration from the University of Southern California and an M.A. in Mathematics of Finance from Columbia University.
Performance
Total returns (as of 07/31/2026)2
| 1M | 3M | 6M | YTD | 1Y | 3Y | Since Inception | |
|---|---|---|---|---|---|---|---|
| Class I | 0.47% | 2.01% | 0.73% | 1.58% | 3.32% | - | 5.07% |
| Class A | 0.35% | 1.78% | 0.46% | 1.24% | 2.83% | - | 4.21% |
| Benchmark | 0.25% | 0.91% | 1.77% | 1.86% | 4.66% | - | 5.79% |
"Benchmark" is a blended benchmark comprised of 50% ICE BofA US High Yield Index4 and 50% Morningstar LSTA U.S. Leveraged Loan Index5. Performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be higher or lower than the data shown. Returns assume reinvestment of distributions and are net of fund expenses. See “Risks” at the bottom of this page.
Portfolio Composition
Asset allocation (% as of 06/30/2026)
Asset allocations are measured as a percentage of the Fund's total investments as of . Allocations are not GAAP-adjusted, may vary and are subject to change without notice. The total may not equal 100% due to rounding.
Fund shares are not guaranteed or endorsed by any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation. Shares of closed-end interval funds are subject to investment risks, including the possible loss of principal invested. Performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be higher or lower than the data shown.
An investment in the Fund presents a number of risks and is not suitable for all investors. Investors should carefully review and consider potential risks before investing. For more detailed information on the specific risks associated with the Fund, please see the “Risks” section of the Fund’s Prospectus here.
Fund education & insights
CLOs
White Papers Videos- What Is a CLO, and Why Invest in CLOs? (3 min 21 seconds)
- Describe the Floating Rate Nature of CLO Securities (1 min)
- How Does CLO Debt Compare to Corporate Credit and BDCs? (1 min 54 seconds)
- What Are Some Advantages of Using CLO Debt to Diversify a Traditional Credit Portfolio? (44 seconds)
- Talk About the Difference Between Investing in CLO Debt vs. CLO Equity (1 min 22 seconds)
- What Are the Risks of Investing in CLO Debt? (1 min 8 seconds)
- Why Is CLO Debt Attractive in Today’s Market? (53 seconds)
Interval Funds
White Papers Videos- What Is an Interval Fund? (1 min 08 seconds)
- Why Do Wealth Managers Prefer Interval Funds to Private Funds?(1 min)
- How Do Interval Funds Compare to Non-listed REITs and BDCs?(58 seconds)
- Which Asset Classes Are Best Suited to the Interval Fund Structure?(1 min 9 seconds)
- What Are Some of the Hallmarks of a Successful Interval Fund?(1 min 24 seconds)
- How Do Interval Funds Help Advisors Differentiate Their Practices?(1 min)
Distributions
Common share distributions
| Payable Date | Ex-Date | Record Date | Class I Shares Amount | Class A Shares Amount | Distribution Type |
|---|---|---|---|---|---|
| Loading... | |||||
Frequently Asked Questions
What is XAI CLO & Income Opportunities Fund (the “Fund”)?
The Fund is a continuously offered closed-end interval fund with monthly distributions and quarterly repurchases. Under normal market conditions, the Fund will invest at least 80% of its net assets in securities of collateralized loan obligation entities (“CLOs”), including CLO debt tranches and CLO equity. The Fund will not invest more than 20% of its Managed Assets in CLO equity. The Fund will purchase CLO Investments in the primary and secondary markets.
Who is XA Investments (XAI)?
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. For more information, please visit www.xainvestments.com or click here to read the firm brochure.
Does the Fund pay distributions?
The Fund intends to pay substantially all of its net investment income to shareholders through monthly distributions, and any net realized long-term capital gains at least annually. There is no assurance the Fund will continue to make regular monthly distributions or that it will do so at a particular rate. Distributions may be paid by the Fund from any permitted source and, from time to time, all or a portion of a distribution may be a return of capital.
Please see the following 19a-1 notice(s):
Does the Fund have a dividend reinvestment plan (DRIP)?
Yes. Distributions with respect to Shares registered in the name of a broker-dealer or other nominee (that is, in “street name”) will be reinvested in additional Shares under the dividend reinvestment plan (DRIP), unless the broker or nominee does not participate in the DRIP or the Shareholder elects to receive distributions in cash. Investors who own Shares registered in street name should consult their broker-dealer for details regarding reinvestment. All distributions to investors who do not participate in the DRIP will be paid by check mailed directly to the record holder by Paralel Technologies LLC (“Paralel”), as dividend disbursing agent. A participant in the DRIP who wishes to opt out of the DRIP and elect to receive distributions in cash should contact Paralel in writing at the address specified below.
All correspondence concerning the DRIP should be directed to the DRIP Agent, Paralel Technologies LLC, XAI CLO & Income Opportunities Fund, P.O. Box 2170, Denver, CO 80201.
For more information on the DRIP program, please refer to the Fund prospectus.
What is the distribution payment process for investors who do not participate in the Fund’s DRIP program? Will my dividend post in my investment account on the same day every month?
On the distribution payment date, the Fund pays the distribution to shareholders who do not participate in the Fund’s dividend reinvestment plan (see “Does the Fund have a dividend reinvestment plan (DRIP)” for more information). Such cash distributions are made via check mailed directly to the record holder by Paralel, as the Fund’s distribution disbursing agent. The record holder, often a Shareholder’s broker-dealer or other nominee (“street name” holder), will allocate the cash distributions to its shareholder accounts, or process reinvestment transactions, per its client instructions. Processing times at various record holders may vary depending on each firm’s internal processes. Depending on your firm’s processes, the Fund’s distribution may or may not be posted in your account on the same day every month. Delays processing distributions may occur at your record holder/brokerage firm that are outside of the Fund’s control.
Are distributions taxable to shareholders?
Distributions are generally taxable for stockholders as ordinary income and/or capital gain. The Fund will send each of its U.S. registered stockholders an annual Form 1099 after the calendar year end. Form 1099 details the amounts includible in a U.S. stockholder's taxable income for the year and the source(s) of such income.
How can I receive email alerts from XAI?
To sign up for email alerts regarding fund news, press releases, white papers and webinars, please fill out the form at the bottom of the webpage or contact info@xainvestments.com.
Repurchases
Repurchase Offer Schedule
The Fund provides periodic liquidity to shareholders by making quarterly repurchase offers, at NAV of no less than 5% and no more than 25% of the Fund’s outstanding shares. Shareholders, or their financial representative, will receive written notification of the repurchase offer.
Quarterly Repurchase Schedule
| Q2 2026 | Q3 2026 | Q4 2026 | Q1 2027 | |
| Repurchase Notice Date | 4/15/2026 | 7/15/2026 | 10/14/2026 | 1/13/2027 |
| Repurchase Request Deadline | 5/27/2026 | 8/26/2026 | 11/25/2026 | 2/24/2027 |
| Repurchase Pricing Date | 5/28/2026 | 8/27/2026 | 11/27/2026 | 2/25/2027 |
| Repurchase Payment Deadline | 6/4/2026 | 9/3/2026 | 12/4/2026 | 3/4/2027 |
Dates subject to change at the Fund’s discretion.
Repurchase Notice Date: The date on which the Fund will notify each shareholder of record about its next repurchase offer. The notice will include key details and procedures regarding the repurchase offer.
Repurchase Request Deadline: The date by which the Fund must receive repurchase requests submitted by shareholders in response to a repurchase offer or withdrawals or modifications of previously submitted repurchase requests for such repurchase offer.
Repurchase Pricing Date: At the close of business, the Fund determines the NAV applicable to the repurchases of the Fund’s shares.
Repurchase Payment Deadline: The date by which the Fund must pay shareholders for any shares repurchased.
Pricing & fees
| SHAREHOLDER TRANSACTION EXPENSES | Class A | Class I |
|---|---|---|
| Maximum Initial Sales Charge (Load) Imposed On Purchases (as a percentage of offering price)1 | 2.00% | None |
| Dividend Reinvestment Fees | None | None |
| ANNUAL EXPENSES (as of 12/31/2025 as a percentage of net assets attributable to shares)2 | Class A | Class I |
|---|---|---|
| Management Fees3 | 1.50% | 1.50% |
| Distribution and/or Servicing Fees4 | 0.85% | None |
| Interest Payment On Borrowed Funds | None | None |
| Other Expenses5 | 1.28% | 1.28% |
| Total Annual Fund Operating Expenses | 3.63% | 2.78% |
| Expense Limitation6 | -0.60% | -0.60% |
| Total Annual Expenses (After Expense Reimbursement)6 | 3.03% | 2.18% |
(1) Paralel Distributors LLC is the principal underwriter and distributor of Class A shares and Class I shares and serves in that capacity on a best efforts basis, subject to various conditions. The Fund may be offered through intermediaries that have entered into selling agreements with the Distributor. Intermediaries typically receive the sales load with respect to Class A shares purchased by their clients. The Distributor does not retain any portion of the sales load. Class A shares are sold subject to a maximum sales load of up to 2.00% of the offering price. However, purchases of Class A shares in excess of $100,000 may be eligible for a sales load discount. See the Fund’s prospectus for more information. While neither the Fund nor the Distributor impose an initial sales charge on Class I shares, if an investor buys Class I shares through certain intermediaries, they may directly charge the investor transaction or other fees in such amount as they may determine. Investors should consult with their intermediary for additional information. Investors should consult with their intermediary about the sales load and any additional fees or charges their intermediary might impose on each class of shares.
(2) Expenses shown in table may not calculate precisely due to rounding
(3) The Fund pays XAI an annual management fee, payable monthly in arrears, in an amount equal to 1.50% of the Fund’s average daily Managed Assets. XAI pays to Rockford Tower Asset Management, L.L.C. a sub-advisory fee out of the management fee received by the XAI.
(4) The Fund may charge a distribution and/or shareholder servicing fee totaling up to 0.85% per year on Class A Shares, which is used to pay for expenses incurred in fostering the distribution and/or shareholder servicing of Class A Shares.
(5) “Other expenses” are based on estimated amounts for the current year. “Other Expenses” include professional fees and other expenses, including, without limitation, SEC filing fees, printing fees, administration fees, transfer agency fees, custody fees, fees charged by PINE, trustee fees, insurance costs and financing costs.
(6) The Adviser and the Sub-Adviser have entered into a letter agreement (the “Operating Expense Limitation Agreement”) with the Fund through January 31, 2027. Pursuant to the Operating Expense Limitation Agreement, the Adviser and the Sub-Adviser have agreed to waive a portion of their management fee and sub-advisory fee, as applicable, or reimburse the Fund for certain operating expenses so that the expenses of the Fund, exclusive of certain excluded expenses, do not exceed 0.68% of the Fund’s Managed Assets through January 31, 2027. Such amounts waived or reimbursed to the Fund by the Adviser and the Sub-Adviser are subject to recoupment for up to three years following the date of such waiver or reimbursement, to the extent that such recoupment does not cause the Fund’s operating expenses to exceed (i) the expense limitation in effect at the time the expense was paid or absorbed, and (ii) the expense limitation in effect at the time of such recoupment. The following expenses are excluded under the Operating Expense Limitation Agreement: (i) investment advisory fees, (ii) investor support and secondary market services fees, (iii) taxes, (iv) expenses incurred directly or indirectly by the Fund as a result of an investment in a permitted investment (including, without limitation, acquired fund fees and expenses), (v) expenses associated with the acquisition or disposition of portfolio investments (including, without limitation, brokerage commissions and other trading or transaction expenses), (vi) leverage expenses (including, without limitation, costs associated with the issuance or incurrence of leverage, commitment fees, interest expense or dividends on preferred shares), (vii) distribution and/or shareholder servicing (12b-1) fees, (viii) dividends on short sales, if any, (ix) securities lending costs, if any, (x) expenses of holding, and soliciting proxies for, meetings of shareholders of the Fund (except to the extent relating to routine items such as the election of trustees), (xi) expenses of a reorganization, restructuring, redomiciling or merger of the Fund or the acquisition of all or substantially all of the assets of another fund, or (xii) any extraordinary expenses not incurred in the ordinary course of the Fund’s business (including, without limitation, expenses related to litigation, derivative actions, demands related to litigation, regulatory or other government investigations and proceeding).
Risks
An investment in the Fund is subject to investment risk, including the possible loss of your entire investment. There can be no assurance that the Fund’s objectives will be achieved. The Fund is a non-diversified, closed-end management investment company that continuously offers its shares. The Fund does not currently intend to list its shares for trading on any national securities exchange and does not expect any secondary trading market in the shares to develop. The shares are, therefore, not readily marketable. Even though the Fund will make quarterly repurchase offers to repurchase a portion of the shares to try to provide liquidity to shareholders, there is no guarantee that an investor will be able to sell all the shares the investor desires to sell in the repurchase offer. You should consider the shares to be illiquid. The Fund is suitable only for investors who can bear the risks associated with the limited liquidity of the Fund and should be viewed as a long-term investment. The Fund invests at least 80% of its assets in CLO debt and CLO 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. The Fund intends to invest primarily in below investment grade instruments, which are commonly referred to as “high yield” securities or “junk” bonds. Investments in below investment grade securities are considered predominantly speculative with respect to the issuer’s capacity to pay interest and repay principal when due and such issuers are not perceived as strong financially as those with higher credit ratings. Investors should review the "Risks" section in the Fund’s most recent Prospectus for a detailed discussion of factors investors should consider carefully before deciding to invest in the Fund’s Shares.
Distributions: The Fund will ordinarily pay distributions from its net investment income, if any, once a month; however, the amount of distributions that the Fund may pay, if any, is uncertain. However, the Fund may pay any distributions from any permitted source and, from time to time, all or a portion of a distribution maybe a return of capital and capital gains. Distributions are not guaranteed in frequency or amount.
Fund shares are not guaranteed or endorsed by any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation. Shares of closed-end funds are subject to investment risks, including the possible loss of principal invested. Performance data quoted represents past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the data shown.
The XAI CLO & Income Opportunities Fund is distributed by Paralel Distributors LLC. Paralel is not affiliated with XA Investments LLC or Rockford Tower Asset Management, L.L.C.
An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. To obtain a prospectus containing this and other information, please call 855-XAI-NVST (924-6878) or download the file here. Please read the prospectus carefully before you invest.
Footnotes
1The current distribution rate is calculated as the most recent distribution annualized and divided by the net asset value per share on the date set forth above. Distributions are intended to be paid from net investment income; however, distributions may be funded from any source including return of capital.
2Rockford Tower Asset Management, L.L.C. assumed portfolio management responsibilities for the Fund on July 30, 2026. Any fund performance dated prior to July 30, 2026, is reflective of the prior sub-adviser.
3The Fund may distribute more or less than the amount of the net investment income earned in a particular period. There is no assurance the Fund will pay regular monthly distributions or that it will do so at a particular rate. Distributions may be paid by the Fund from any permitted source and, from time to time, all or a portion of a distribution may be a return of capital.
4The ICE BofA US High Yield Index tracks the performance of US dollar denominated below investment grade rated corporate debt publicly issued in the US domestic market. To qualify for inclusion in the index, securities must have a below investment grade rating (based on an average of Moody's, S&P, and Fitch), at least 18 months to final maturity at the time of issuance, at least one year remaining term to final maturity as of the rebalancing date, a fixed coupon schedule and a minimum amount outstanding of $100 million. Index constituents are capitalization-weighted based on their current amount outstanding times the market price plus accrued interest. Accrued interest is calculated assuming next-day settlement. Cash flows from bond payments that are received during the month are retained in the index until the end of the month and then are removed as part of the rebalancing. Cash does not earn any reinvestment income while it is held in the index. It is not possible to invest directly in this index.
5The Morningstar LSTA Leveraged Loan Index (“Morningstar LSTA LLI”) is a market value weighted index designed to measure the performance of the US leveraged loan market. The index universe comprises syndicated, senior secured, US-dollar denominated leveraged loans covered by Morningstar PitchBook/LCD, a Morningstar Company. Loan facilities included in the LLI must have a one year (at inception) minimum term, an initial minimum spread of LIBOR/SOFR +1.25%, and a minimum size of $50mm (initially funded). Refinitiv/LPC Mark-to-Market Pricing is used to price each loan in the index. Refinitiv/LPC Mark-to Market Pricing is based on bid/ask quotes gathered from dealers and is not based upon derived pricing models. The index uses the average bid for its market value calculation. It is not possible to invest directly in this index.
The Fund changed its name to the XAI CLO & Income Opportunities Fund and will continue to be offered under the tickers Class I: OCTIX, Class A: OCTAX.
