XAI Octagon Floating Rate Trust Announces Distribution Updates

XAI Octagon Floating Rate Trust's Recent Distribution Announcements

XAI Octagon Floating Rate & Alternative Income Trust has declared its latest monthly distribution for common shares, valued at $0.077 each. Additionally, the Trust announced quarterly dividends of $0.40625 for its 6.50% Series 2026 Term Preferred Shares. These decisions reflect the Trust's ongoing commitment to shareholder returns.

Details of the Distribution Announcements

The monthly distribution for common shares (XFLT) will occur alongside preferred dividends for the Series 2026 Term Preferred Shares (XFLTPRA). Investors should take note of the following dates related to these distributions:

Common Shares Distribution Information

The distribution for XFLT is set for January 16, 2025. Shareholders should mark their calendars as the payable date for this distribution will be on February 3, 2025. It's essential to recognize that such distributions might come from various sources, including net investment income and capital gains.

Preferred Shares Dividend Information

Shareholders of XFLTPRA will experience a similar schedule. The ex-dividend date and record date align with January 15, 2025, and the payment of the dividends is slated for January 31, 2025. This structured approach ensures timely payments, provided the Trust maintains compliance with applicable laws and financial covenants.

Understanding Distribution Sources

The Trust's common share distributions may not solely originate from net investment income. Instead, they may potentially include returns of capital, which reflect repaid investment amounts rather than realized profits. This characteristic influencing common shares indicates a nuanced approach towards funding and distributing returns.

Investment Strategy & Goals

The primary investment objective of XAI Octagon Floating Rate Trust is to enhance total returns while emphasizing income generation throughout various economic cycles. The Trust actively invests in a well-managed portfolio centered around private credit markets, aiming for at least 80% allocation in floating rate credit instruments and structured credits. However, achieving these goals depends heavily on market conditions, investor behavior, and economic developments.

About XA Investments

XA Investments LLC serves as the investment adviser for the Trust and focuses on providing access to a range of investment strategies for clients. Established in 2016, XA Investments aims to bridge individual investors with institutional-quality investment opportunities. Their experience encompasses investment advisory roles for various funds including the XAI Octagon Floating Rate & Alternative Income Trust (XFLT) and XAI Madison Equity Premium Income Fund (MCN).

Investment Advisory Services

Beyond advisory services, XA Investments engages in fund structuring and consulting to meet diverse clients' needs in the investment arena. Their expanding portfolio includes actively managed funds and innovative investment solutions, illustrating a firm commitment to investor satisfaction and achieving financial goals.

Looking Ahead

The dynamics of these distributions and dividends are subject to various conditions. The Trust aims to maintain stability in its monthly distributions, but future amounts may fluctuate based on investment income, market conditions, and board decisions. Investors are encouraged to stay informed about any changes that may arise, as they can significantly affect investment strategies.

Frequently Asked Questions

What is the amount of the common shares distribution?

The common shares distribution is set at $0.077 per share for the Trust's common shares (XFLT).

When will the preferred shares dividends be paid?

The preferred share dividends of $0.40625 will be paid on January 31, 2025.

What factors influence distribution amounts?

Distributions can be influenced by net investment income, capital gains, and other financial factors as determined by the Trust's Board of Trustees.

How does XA Investments contribute to the Trust?

XA Investments serves as the investment adviser, focusing on achieving attractive returns and providing access to institutional-grade investment opportunities.

Are there any risks associated with the Trust's investments?

Yes, investments in the Trust are subject to market risks and taxation, and potential changes in distribution policies may impact returns.

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