XFLT shareholders are urged to vote for the King Street Sub-Adviser to avoid prolonged uncertainty.
Quiver AI Summary
XA Investments LLC, the manager of XAI Floating Rate & Alternative Income Trust (XFLT), urges shareholders to vote in favor of a new investment sub-advisory agreement with King Street Capital Management at the upcoming Special Meeting on July 30, 2026. The Board believes that approving King Street as the Fund's sub-adviser will enhance performance and distributions without changing fees. If the proposal is rejected, uncertainty will continue as the interim sub-adviser, King Street, will remain in place while the Board seeks a permanent sub-adviser. The terminated sub-adviser, Octagon Credit Investors, has been spreading misleading information about the vote, which solely concerns the approval of the King Street Sub-Advisory Agreement; shareholders are not voting on reinstating Octagon or changing management fees. Shareholders can vote using the WHITE proxy card and are encouraged to do so to avoid further complications.
Potential Positives
- The Board expresses high confidence that the King Street Sub-Adviser will enhance performance and increase distributions for the Fund.
- King Street Capital Management has a strong reputation and manages $30 billion in assets, providing credibility and expertise to the Fund's investment strategy.
- The press release clarifies that there will be no management fee increases regardless of the outcome of the vote, ensuring cost stability for shareholders.
- The Board urges shareholders to take action by voting on the WHITE card, promoting proactive engagement and communication with investors.
Potential Negatives
- Shareholders may perceive the need for urgent voting on the King Street Sub-Adviser as a sign of instability and uncertainty regarding the Fund's management, which could undermine investor confidence.
- The aggressive push to reject misleading claims from the terminated sub-adviser Octagon may suggest internal conflict and raise concerns about the company's ability to manage external relationships effectively.
- The fact that shareholders face a limited choice, with no option to reappoint Octagon, may lead to dissatisfaction among those who preferred the previous management style or strategy, potentially causing further discontent among the investor base.
FAQ
What is the upcoming vote about for XFLT shareholders?
XFLT shareholders will vote on approving the King Street Sub-Advisory Agreement in a special meeting on July 30, 2026.
Who is the proposed sub-adviser for XFLT?
The proposed sub-adviser is King Street Capital Management, specifically through its wholly owned subsidiary, Rockford Tower Asset Management.
Will there be changes to management fees if approved?
No, there will be no management fee increases if the King Street Sub-Advisory Agreement is approved or not approved.
What happens if shareholders vote against the proposal?
A vote against the proposal will lead to continued uncertainty and an interim sub-adviser while the board searches for a permanent replacement.
How can shareholders cast their votes for the proposal?
Shareholders can vote online, by phone, or by mailing their WHITE proxy card as instructed.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$XFLT Insider Trading Activity
$XFLT insiders have traded $XFLT stock on the open market 1 times in the past 6 months. Of those trades, 1 have been purchases and 0 have been sales.
Here’s a breakdown of recent trading of $XFLT stock by insiders over the last 6 months:
- JOHN YOGI SPENCE (Vice President) purchased 5,000 shares for an estimated $19,500
To track insider transactions, check out Quiver Quantitative's insider trading dashboard. You can access data on insider stock transactions through the Quiver Quantitative API insider transaction endpoint.
$XFLT Hedge Fund Activity
We have seen 23 institutional investors add shares of $XFLT stock to their portfolio, and 64 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- SIT INVESTMENT ASSOCIATES INC removed 1,093,513 shares (-100.0%) from their portfolio in Q1 2026, for an estimated $18,786,553
- MORGAN STANLEY removed 334,500 shares (-100.0%) from their portfolio in Q1 2026, for an estimated $5,746,710
- NORTH GROUND CAPITAL removed 296,484 shares (-100.0%) from their portfolio in Q1 2026, for an estimated $5,093,595
- RIVERNORTH CAPITAL MANAGEMENT, LLC added 215,155 shares (+126.9%) to their portfolio in Q1 2026, for an estimated $3,696,362
- ALPINE GLOBAL MANAGEMENT, LLC removed 148,455 shares (-100.0%) from their portfolio in Q1 2026, for an estimated $2,550,456
- CRESSET ASSET MANAGEMENT, LLC removed 143,956 shares (-100.0%) from their portfolio in Q1 2026, for an estimated $2,473,164
- GUGGENHEIM CAPITAL LLC removed 143,674 shares (-100.0%) from their portfolio in Q1 2026, for an estimated $2,468,319
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard. You can access data on hedge funds moves and 13F filings through the Quiver Quantitative API 13F endpoint.
Full Release
The Choice Is Between Approving King Street as Sub-Adviser or Prolonging Uncertainty
There Is No Option to Reappoint Octagon as Sub-Adviser
The Board Urges XFLT Shareholders Vote on the WHITE Card to Approve the King Street Sub-Adviser Ahead of Special Meeting of Shareholders on July 30 th
CHICAGO, July 25, 2026 (GLOBE NEWSWIRE) -- XA Investments LLC (“XAI”), manager of XAI Floating Rate & Alternative Income Trust (XFLT) (the “Fund”), clarified the choice put forth before shareholders at the upcoming Special Meeting of Shareholders on July 30, 2026:
-
Vote on the
WHITE
card “
FOR
” the approval of the new investment sub-advisory agreement among the Fund, XA Investments LLC and Rockford Tower Asset Management, L.L.C. (the “King Street Sub-Adviser”), a wholly owned subsidiary of King Street Capital Management, L.P. (“King Street”) (the “King Street Sub-Advisory Agreement”), which the Board believes will enhance performance and distributions, with no changes to fees.
-
Vote against the proposal, resulting in limbo as the King Street Sub-Adviser is appointed interim sub-adviser and the Board restarts the process to identify a permanent sub-adviser.
However, the terminated sub-adviser Octagon Credit Investors (“Octagon”) has launched a campaign to confuse shareholders about the nature of this vote. We do not believe shareholders should be misled.
WHAT SHAREHOLDERS ARE ACTUALLY BEING ASKED TO APPROVE
-
There is only one shareholder proposal to be voted on. The XFLT Board is asking shareholders of the Fund to approve the King Street Sub-Advisory Agreement.
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XFLT’s Board launched a comprehensive process to identify the King Street Sub-Adviser as the ideal sub-adviser for the Fund.
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King Street is a leading global alternative asset manager that, along with its affiliates, manages $30 billion assets across multiple segments of the public and private markets. King Street’s collateralized loan obligation (CLO) platform includes 20 U.S. CLOs, nine European CLOs and approximately $12 billion in CLO assets under management.
-
The Board has high conviction that King Street has the potential to increase distributions, improve Fund performance over time and manage the Fund more dynamically within its stated mandate.
WHAT SHAREHOLDERS ARE NOT BEING ASKED TO APPROVE
The terminated sub-adviser Octagon continues to intentionally spread misleading claims surrounding the elements of the shareholder proposal ahead of the Special Meeting.
To clarify, the following are NOT matters shareholders will be voting on:
-
There are
NO
management fee increases if the proposal is approved. There are
NO
changes to management fees if the proposal is not approved.
-
Octagon will not be reinstated as sub-adviser following the Special Meeting on July 30
th
.
-
A failed vote will not bring Octagon and XAI back to the negotiation table.
-
The Fund’s qualified management team and Board will remain in place regardless of the outcome of the vote.
VOTE “FOR” THE APPROVAL OF THE KING STREET SUB-ADVISOR AGREEMENT ON THE WHITE PROXY CARD TODAY
The Board urges XFLT shareholders to vote “ FOR ” the King Street Sub-Adviser on the WHITE Card. Use one of the following options to vote:
-
By Internet:
Visit the website listed on your
WHITE
proxy card, enter your control number and follow the simple on-screen instructions.
-
By Phone:
Call the toll-free number listed on your
WHITE
proxy card.
-
By Mail:
Sign and return the enclosed
WHITE
proxy card in the enclosed postage-paid envelope.
If you have any questions or need assistance voting your shares, please contact our proxy solicitation firm, Okapi Partners LLC, toll-free at (855) 305-0855 or by email at [email protected] .
About XA Investments
XA Investments LLC is a Chicago-based firm founded by XMS Capital Partners in 2016. XAI serves as the investment adviser for two listed closed-end funds and an interval closed-end fund. 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, 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. For more information, please visit www.xainvestments.com .
About King Street Capital Management
King Street is a global alternative investment firm founded in 1995 that manages $30 billion in assets across public and private markets. The firm marries rigorous fundamental research with tactical trading and differentiated sourcing capabilities to identify investment opportunities across asset classes, up and down the capital structure. For more information, please visit
www.kingstreet.com
. Follow
King Street Capital Management
on LinkedIn.
Forward-Looking Statements
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 Fund’s actual results are the performance of the portfolio of securities held by the Fund, the conditions in the U.S. and international financial and other markets, the price at which Fund shares trade in the public markets and other factors. Although the Fund 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 Fund’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 Fund’s ongoing obligations under the federal securities laws, the Trust does not intend, and the Fund undertakes no obligation, to update any forward-looking statement.
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.
Past performance is no guarantee of future results. An investment in the Fund involves risk, including the possible loss of principal. Investors should consider the Fund’s investment objectives, risks, charges, and expenses carefully before investing. Please refer to the Fund’s filings with the Securities and Exchange Commission for additional information.
Media Contact:
XA Investments LLC
Kim Shepherd
Senior Consultant
[email protected]
312-623-5123
www.xainvestments.com
Prosek Partners
[email protected]
