XAI Octagon Floating Rate & Alternative Income Trust Declares Monthly Distribution of $0.077 per Share

XAI Octagon Floating Rate Trust declares $0.077 monthly distribution, unchanged from previous month, payable March 3, 2025.

Quiver AI Summary

XAI Octagon Floating Rate & Alternative Income Trust has announced a regular monthly distribution of $0.077 per share on its common shares, payable on March 3, 2025, to shareholders of record as of February 18, 2025. This distribution amount remains unchanged from the previous month. Shareholders are advised that the source of distributions may include net investment income, capital gains, and return of capital, with specific tax attributes being provided later on Form 1099. The Trust emphasizes its objective of maintaining stable monthly distributions while navigating complex tax rules related to its investments. Future distributions will depend on several factors, including compliance with financial covenants and the Trust's overall financial performance. XAI Investments LLC serves as the Trust's investment advisor, aiming for an attractive total return with a focus on income generation across various stages of the credit cycle through a portfolio invested primarily in floating-rate credit instruments.

Potential Positives

• The Trust has maintained its regular monthly distribution of $0.077 per share, indicating stability in its income-generating capability.
• The consistent distribution amount is a positive signal to investors about the Trust's commitment to returning value to shareholders.
• The distribution is set to be paid on March 3, 2025, providing shareholders with predictable cash flow.
• The Trust's investment strategy emphasizes stability and income generation, which may attract more conservative investors seeking reliable returns.

Potential Negatives

• The announcement reflects stagnation as the monthly distribution remains unchanged at $0.077 per share, which may signal limited growth or profitability potential for the Trust.
• The Trust's reliance on returns of capital for distributions raises concerns about its financial health and sustainability, suggesting it may not be generating sufficient net investment income.
• There is no assurance regarding future distributions, with the risk that the Trust may suspend or discontinue payments, creating uncertainty for investors.

FAQ

What is the monthly distribution amount for XAI Octagon Trust?

The monthly distribution amount for XAI Octagon Floating Rate & Alternative Income Trust is $0.077 per share.

When will the distribution be paid to shareholders?

The distribution will be payable on March 3, 2025, to shareholders of record as of February 18, 2025.

What are the tax implications of this distribution?

The specific tax characteristics will be reported on Form 1099 after the end of the 2025 calendar year.

How often are distributions declared by the Trust?

The Trust declares distributions regularly on a monthly basis, subject to Board approval and financial performance.

What is the investment objective of the Trust?

The Trust aims for attractive total return with a focus on income generation across multiple stages of the credit cycle.

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 purchased 2,000 shares for an estimated $13,000

To track insider transactions, check out Quiver Quantitative's insider trading dashboard.

$XFLT Hedge Fund Activity

We have seen 35 institutional investors add shares of $XFLT stock to their portfolio, and 23 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

• CHOREO, LLC added 151,183 shares (+inf%) to their portfolio in Q4 2024, for an estimated $1,003,855
• INVESCO LTD. added 83,768 shares (+inf%) to their portfolio in Q3 2024, for an estimated $571,297
• ALL SEASON FINANCIAL ADVISORS, INC. removed 81,976 shares (-100.0%) from their portfolio in Q3 2024, for an estimated $559,076
• WALLEYE CAPITAL LLC removed 79,471 shares (-63.6%) from their portfolio in Q3 2024, for an estimated $541,992
• J.W. COLE ADVISORS, INC. added 47,473 shares (+30.1%) to their portfolio in Q4 2024, for an estimated $315,220
• B. RILEY WEALTH ADVISORS, INC. removed 41,150 shares (-59.3%) from their portfolio in Q3 2024, for an estimated $280,643
• CHICAGO PARTNERS INVESTMENT GROUP LLC removed 36,550 shares (-16.9%) from their portfolio in Q4 2024, for an estimated $242,692

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.

Full Release

CHICAGO, Feb. 03, 2025 (GLOBE NEWSWIRE) -- XAI Octagon Floating Rate & Alternative Income Trust (the “Trust”) has declared its regular monthly distribution of $0.077 per share on the Trust’s common shares (NYSE: XFLT), payable on March 3, 2025, to common shareholders of record as of February 18, 2025, as noted below. The amount of the distribution represents no change from the previous month's distribution amount of $0.077 per share.

The following dates apply to the declaration:

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 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 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 (NYSE: XFLT) and XAI Madison Equity Premium Income Fund (NYSE: MCN) both trade on the New York Stock Exchange. The interval closed-end fund, Octagon XAI CLO Income Fund (OCTIX), is newly launched and has been made widely available to investors.

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, $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.

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Media Contact:



Kimberly Flynn, President


XA Investments LLC


Phone: 888-903-3358


Email:

KFlynn@XAInvestments.com






www.xainvestments.com

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.