Business Context and Reporting Period
This Form 8-K was filed by XAI Octagon Floating Rate & Alternative Income Trust (the "Trust") on May 14, 2026. The filing reports a significant corporate governance event involving the appointment of a new investment sub-adviser and a corresponding change to the Trust's name.
Key Financial Metrics
The filing does not provide specific financial performance data such as revenue, profit, cash flow, or liquidity metrics for the current period. However, it discloses the following fee structure:
- Investment Advisory Fee: 1.70% of the Trust's average daily Managed Assets, payable monthly in arrears to XA Investments LLC.
- Incentive Fees: The Trust does not pay any form of incentive fees.
- Sub-Advisory Fee: XA Investments will pay a sub-advisory fee to the new sub-adviser; the specific amount is not disclosed in this filing.
Material Changes
The filing details the following material changes effective upon shareholder approval (expected on or about July 30, 2026):
- Sub-Adviser Replacement: The Board of Trustees has approved Rockford Tower Asset Management, L.L.C. (an affiliate of King Street Capital Management, L.P.) as the new investment sub-adviser, replacing Octagon Credit Investors, LLC.
- Management Team: Young Choi and Terry Ing of King Street will be primarily responsible for day-to-day portfolio management.
- Name Change: The Trust's name will change from "XAI Octagon Floating Rate & Alternative Income Trust" to "XAI Floating Rate & Alternative Income Trust".
- Investment Strategy: No changes to the investment objective or principal policies are expected. The Trust will continue to invest at least 80% of Managed Assets in floating rate credit instruments and structured credit investments, with a dynamic allocation between U.S. and European CLOs.
Outlook, Risks, and Contingencies
Shareholder Approval: The new sub-advisory agreement is contingent upon approval by the Trust's shareholders. A special meeting is scheduled for approximately July 30, 2026.
Forward-Looking Statements: The filing includes standard disclaimers that actual results may differ materially from expectations due to market conditions, portfolio performance, and other risks.
Regulatory Compliance: The Trust notes that the sub-advisory agreement must be approved under the Investment Company Act of 1940. Detailed information will be provided in a proxy statement to be filed with the SEC.
Investor Verification Checklist
- Verify the outcome of the shareholder vote on the King Street Sub-Advisory Agreement at the special meeting on or about July 30, 2026.
- Review the upcoming proxy statement for detailed information on the new sub-adviser's track record and the specific sub-advisory fee structure.
- Confirm the official name change to "XAI Floating Rate & Alternative Income Trust" and the ticker symbol status (currently XFLT) post-approval.
- Monitor the transition of portfolio management from Octagon Credit Investors to King Street personnel.