Business Context and Reporting Period
This Form 8-K filing by XAI Octagon Floating Rate & Alternative Income Term Trust (NYSE: XFLT) reports events occurring on August 28, 2023, with the report dated August 29, 2023. The Trust is a Delaware entity focused on floating rate and alternative income investments.
Key Financial Metrics
This filing does not contain financial performance data such as revenue, profit, cash flow, margins, debt, or liquidity metrics. The document focuses exclusively on operational agreements.
Material Changes
- Entry into Material Definitive Agreement: The Trust entered into a new Administration and Fund Accounting Agreement with Paralel Technologies LLC, effective August 28, 2023.
- Termination of Prior Agreement: The Trust terminated its prior administration, bookkeeping, and pricing services agreement with ALPS Fund Services, Inc., effective August 28, 2023. The formal termination of the ALPS agreement is scheduled for September 25, 2023.
- Fee Structure Change: Under the new agreement, Paralel receives a monthly fee based on a percentage of the Trust's average daily managed assets (subject to breakpoints), whereas the prior agreement with ALPS was based on average daily net assets. Both agreements include reimbursement for out-of-pocket expenses.
Guidance, Outlook, and Risks
The filing contains no management guidance, outlook, or discussion of risks and contingencies beyond the operational transition of administrative services. The services provided by Paralel are described as materially similar to those previously provided by ALPS.
Investor Verification Checklist
- Verify the specific fee breakpoints and percentage rates in the full text of the Paralel Agreement (Exhibit 10.1).
- Confirm the transition timeline and any potential service gaps between ALPS and Paralel.
- Review the Trust's subsequent filings for any impact on operating expenses or net asset value resulting from the change in administrator.