XAI Octagon Floating Rate Trust announces monthly distributions of $0.070 per common share and $0.40625 per preferred share.
Quiver AI Summary
XAI Octagon Floating Rate & Alternative Income Trust has announced a monthly distribution of $0.070 per common share and a preferred dividend of $0.40625 per preferred share for the 6.50% Series 2026 Term Preferred Shares. Both distributions will be payable on their respective dates in August 2025. Shareholders should note that the funds for distributions may originate from various sources, including net investment income, capital gains, or a return of capital. The Trust aims to provide stable monthly distributions despite the variability in net investment income and capital gains. Investors are advised that future distributions may differ and are dependent on several factors, including compliance with financial covenants. The Trust primarily invests in floating rate credit instruments and seeks to achieve attractive total returns. The investment management is provided by XA Investments, with Octagon Credit Investors serving as the sub-adviser.
Potential Positives
- The Trust has declared a regular monthly distribution of $0.070 per common share, demonstrating a commitment to returning value to shareholders.
- Preferred dividends of $0.40625 per share for the 6.50% Series 2026 Term Preferred Shares indicate stable financial management and shareholder benefits.
- The Trust aims to maintain stable common share distributions over time, which may appeal to income-focused investors.
Potential Negatives
- The press release indicates that the Trust's distributions to common shareholders may include a return of capital, which could be an indication of insufficient net investment income to cover regular distributions.
- There is a warning that future distributions are not guaranteed and may be suspended or discontinued, which could negatively affect shareholder confidence.
- The complex tax rules related to the Trust’s investments in CLOs may lead to significant discrepancies between reported income and taxable income, potentially confusing investors and impacting their tax liabilities.
FAQ
What is the latest distribution declared by XAI Octagon Floating Rate Trust?
The Trust declared a monthly distribution of $0.070 per common share.
When are the ex-dividend and payable dates for the Trust's distributions?
The ex-dividend date is July 15, 2025, and the payable date is August 1, 2025.
What are the preferred dividends declared for the quarter?
The Trust declared preferred dividends of $0.40625 per share for the Series 2026 Term Preferred Shares.
How does the Trust determine its common share distributions?
The Trust evaluates its net investment income, financial performance, and compliance with senior security covenants to decide distributions.
Who serves as the investment adviser for XAI Octagon Trust?
XA Investments LLC serves as the investment adviser for the XAI Octagon Floating Rate & Alternative Income Trust.
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 2 times in the past 6 months. Of those trades, 2 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) has made 2 purchases buying 5,000 shares for an estimated $31,989 and 0 sales.
To track insider transactions, check out Quiver Quantitative's insider trading dashboard.
$XFLT Hedge Fund Activity
We have seen 50 institutional investors add shares of $XFLT stock to their portfolio, and 31 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- ENVESTNET ASSET MANAGEMENT INC added 717,984 shares (+inf%) to their portfolio in Q1 2025, for an estimated $4,243,285
- J.W. COLE ADVISORS, INC. added 292,136 shares (+142.3%) to their portfolio in Q1 2025, for an estimated $1,726,523
- THOMAS J. HERZFELD ADVISORS, INC. added 221,874 shares (+21.4%) to their portfolio in Q1 2025, for an estimated $1,311,275
- LANDSCAPE CAPITAL MANAGEMENT, L.L.C. added 184,711 shares (+354.2%) to their portfolio in Q1 2025, for an estimated $1,091,642
- BELPOINTE ASSET MANAGEMENT LLC removed 165,400 shares (-27.0%) from their portfolio in Q1 2025, for an estimated $977,514
- UBS GROUP AG removed 138,989 shares (-38.8%) from their portfolio in Q1 2025, for an estimated $821,424
- INVESCO LTD. added 89,048 shares (+347.6%) to their portfolio in Q1 2025, for an estimated $526,273
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
CHICAGO, July 01, 2025 (GLOBE NEWSWIRE) -- XAI Octagon Floating Rate & Alternative Income Trust (the “Trust”) has declared its regular monthly distribution of $0.070 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, 2025 | July 15, 2025 | August 1, 2025 | $0.070 | No Change | |
XFLTPRA | July 15, 2025 | July 15, 2025 | July 31, 2025 | $0.40625 | No Change 1 |
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 2025 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, after the evaluation of several 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 2016. XAI serves as the investment adviser for two listed closed-end funds and an interval closed-end fund. The listed closed-end funds, the XAI Octagon Floating Rate & Alternative Income Trust and XAI Madison Equity Premium Income Fund both trade on the New York Stock Exchange and the interval fund, Octagon XAI CLO Income Fund is available via direct subscription and through select broker/dealers and wealth management platforms.
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, 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 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 | ||
Paralel Distributors, LLC - Distributor |
Media Contact:
Kimberly Flynn, President
XA Investments LLC
Phone: 888-903-3358
Email:
[email protected]
www.xainvestments.com
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%.