XAI Octagon Floating Rate Trust Announces Consistent Distribution
XAI Octagon Floating Rate Trust Declares Monthly Distribution
The XAI Octagon Floating Rate & Alternative Income Trust has announced its regular monthly distribution of $0.070 per share, ensuring that its common shareholders continue to receive reliable income. This distribution will be paid to shareholders on record by early September and maintains the previous month's amount, demonstrating the Trust's commitment to stable returns.
Key Dates for Shareholders
Understanding the schedule is vital for shareholders looking to manage their investments. The Trust has set significant dates for this distribution:
Ex-Dividend Date
Investors should note the ex-dividend date is August 15th, which is crucial for determining eligibility for the upcoming distribution. Shareholders must own shares before this date to receive the declared payment.
Record Date and Payable Date
Following the ex-dividend date, shareholders of record by August 15th will receive their distributions on September 2nd. This predictable timing helps investors plan their cash flow effectively.
Source of Distributions
Distributions from the Trust may originate from various sources, including net investment income, capital gains, or even a return of capital. It’s important for shareholders to be aware of the nature of their distributions because it can affect their tax obligations. Each shareholder will receive a Form 1099 at the end of the calendar year detailing these specifics.
Trust’s Investment Strategy
The Trust aims to provide attractive total returns with a focus on income generation throughout different stages of the credit cycle. The investment strategy involves constructing a dynamic portfolio mainly within private credit markets, predominantly allocating at least 80% of its Managed Assets in floating rate credit instruments and various structured credit investments.
Investment Advisory by XA Investments
XA Investments LLC, based in Chicago, serves as the Trust's investment adviser, managing two listed closed-end funds alongside an interval closed-end fund. Their experience and resources promote competitive fund management, presenting opportunities to individual investors.
Commitment to Returns
By engaging in a disciplined investment approach and closely analyzing credit opportunities, the Trust aims to provide consistent returns to its investors over time. This approach seeks to assure shareholders that their investments are poised for stability, even within fluctuating market conditions.
Future Considerations for Shareholders
While the Trust is committed to maintaining its distribution levels, it's essential for investors to recognize that future payouts depend on several financial factors. These include compliance with senior securities' financial covenants and the overall performance of the Trust’s portfolio. The Board of Trustees retains discretion over future distributions, leaving room for changes based on prevailing conditions.
Understanding Returns of Capital
Shareholders should also understand that certain distributions might include a return of capital. This situation arises when the distributions exceed the Trust’s net investment income. It impacts the initial tax basis of their shares, potentially increasing their taxable gain upon selling shares in the future.
About XAI and its Partners
In addition to its investment advisory functions, XA Investments collaborates with XMS Capital Partners and Octagon Credit Investors, enhancing the Trust’s strategic positioning in the investment landscape. Together, these firms leverage their expertise to ensure robust fund performance while adhering to investors’ needs for reliable income and growth.
Frequently Asked Questions
What is the distribution amount declared by XAI Octagon?
The declared distribution amount is $0.070 per common share.
When is the payable date for the current distribution?
The payable date is September 2.
Who qualifies for the distribution payment?
Shareholders who are on record as of August 15 will qualify for the distribution payment.
What is the role of XA Investments in the Trust?
XA Investments LLC acts as the investment adviser for the Trust, managing its investment strategy and decisions.
Can the Trust change its distribution amounts in the future?
Yes, future distributions are subject to the review and discretion of the Board of Trustees based on various financial factors.
About The Author
Contact Dominic Sanders privately here. Or send an email with ATTN: Dominic Sanders as the subject to contact@investorshangout.com.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.