XAI Octagon Floating Rate Trust Announces Monthly Distribution
XAI Octagon Floating Rate Trust Announces Monthly Distribution
CHICAGO — XAI Octagon Floating Rate & Alternative Income Trust has declared its regular monthly distribution of $0.077 per share on the Trust’s common shares (NYSE: XFLT). This distribution is set to benefit shareholders of record as noted in the announcement and indicates stability as it reflects no change from the previous month's distribution.
Distribution Declaration Details
The following key dates are associated with this distribution:
Ex-Dividend Date
February 18
Record Date
February 18
Payable Date
March 3
Amount of Distribution
$0.077 per common share
Understanding the Distributions
Distributions for common shares can stem from different sources including net investment income, capital gains, or a return of capital. The specific tax implications of these distributions will be communicated to shareholders through Form 1099 after the close of the fiscal year. It is crucial for shareholders to recognize that not all distributions are indicative of net income or profits.
Investment Strategies and Objectives
The Trust aims for an attractive total return, placing a significant focus on income generation across various stages of the credit cycle. It primarily invests in a dynamically managed portfolio that targets opportunities within private credit markets. Under stable market conditions, a minimum of 80% of its Managed Assets is directed towards floating rate credit instruments and structured credit investments. There are no guarantees that the Trust will achieve its investment objectives, and investors should be aware that future distributions may vary.
About XA Investments
XA Investments LLC, headquartered in Chicago, serves as the investment adviser for the Trust. Founded in 2016, XA Investments also advises other closed-end funds listed on the New York Stock Exchange, enhancing investors' access to diversified income solutions.
Role of XMS Capital Partners
Established in 2006, XMS Capital Partners has become a significant player in the financial services sector, providing M&A advisory and asset management services, servicing clients with an array of needs through their offices across major cities.
The Importance of Capital Maintenance
As a registered investment entity, the Trust faces a 4% excise tax on unallocated earnings. A structured approach ensures compliance with regulations that require distribution of at least 98% of ordinary income. This method protects shareholders’ interests while promoting financial stability.
Future Distributions
The Trust’s Board of Trustees will determine the cadence and amount of future distributions based on multiple factors, including compliance with senior securities' terms, net investment income, and available capital. There is no assurance that coming distributions will mirror the present amounts or timing.
Conclusion and Investor Considerations
Investors are encouraged to critically assess their investment choices by considering the objectives, risks, and expenses before investing in the Trust. The opportunity to gain returns through diversified investments remains a potential pathway to achieving financial goals.
Frequently Asked Questions
What is the monthly distribution amount for XAI Octagon Trust?
The Trust has declared a monthly distribution of $0.077 per share.
When is the payable date for the distribution?
The distribution is set to be payable on March 3.
How does the Trust generate income for its distributions?
The Trust generates income through net investment returns, capital gains, and other financial strategies.
What are the investment goals of the Trust?
The Trust aims for an attractive total return with a focus on income generation across various credit cycles.
What is the role of XA Investments in the Trust?
XA Investments acts as the investment adviser, providing guidance on investment strategies and management of the portfolio.
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