XAI Octagon Floating Rate & Alternative Income Trust Distribution Announcement
XAI Octagon Floating Rate & Alternative Income Trust has recently made a significant announcement regarding its monthly distribution. As part of its ongoing commitment to its shareholders, the Trust declared a monthly distribution of $0.070 per share on its common shares, traded under the ticker NYSE: XFLT. This distribution reflects a steady approach, maintaining the same amount as the prior month's payout.
Key Dates for Distribution
Shareholders should take note of the important dates associated with this distribution. The Ex-Dividend Date is set for December 15, allowing investors to appear on the record for this payment. The Record Date, which marks the final date to qualify for receiving the payout, is also December 15. Following this, payments will be made on December 31, ensuring that shareholders receive their dividends promptly.
Understanding Distribution Payments
Distribution payments made by the Trust can come from several sources, including net investment income, capital gains, and a potential return of capital. It's essential for shareholders to understand the nature of these payments, particularly how they may affect their tax situations. The Trust will provide detailed tax information on Form 1099 after the fiscal year ends.
Nature of Distributions
Occasionally, distributions may exceed the Trust's net investment income for a given period. This means that some portion could be categorized as a return of capital. While a return of capital may not incur tax liability, it will impact the tax basis of an investor's shares, potentially altering future tax obligations upon selling those shares.
Investment Strategy and Goals
The Trust aims to provide an attractive total return through aggressive income generation derived from multiple sectors across the credit cycle. With a clear focus on investments primarily within the private credit markets, the Trust’s strategy involves allocating at least 80% of its managed assets in floating rate credit instruments and structured credit investments. By remaining adaptable to market conditions, the Trust strives to balance risk while achieving its stated objective.
Investment Management Team
Support for the Trust's investment strategies comes from XA Investments LLC, its dedicated investment adviser, which has a proven track record in managing listed closed-end funds. With a robust experience in structuring funds and meeting institutional clients' needs, XA Investments focuses on delivering value through informed investment decisions.
Regular Communication and Investor Support
For investors in the XAI Octagon Floating Rate & Alternative Income Trust, communication is key. The Trust encourages stakeholders to reach out for more information regarding any queries about distributions or ongoing investment strategies. The firm emphasizes being accessible to individual investors who seek informed guidance through complexity.
Future Distribution Outlook
The Trust's Board of Trustees holds the discretion to declare future distributions based on various factors, including financial performance and adherence to senior securities' terms. This evaluation ensures that all distributions align with the Trust’s financial health and operational liquidity, leading to well-informed decisions geared toward shareholder interests.
About XA Investments
Founded in 2016, XA Investments LLC serves as the Trust's investment adviser. With a strong foundation in the financial sector, the firm specializes in managing closed-end funds and providing comprehensive investment solutions suited for institutional clients. Their strategic insights and commitment to responsible management underscore their potential value to the Trust and its shareholders.
Frequently Asked Questions
What is the amount of the monthly distribution declared?
The Trust has declared a monthly distribution of $0.070 per share on its common shares.
When will the distribution payment be made?
The payment will be made on December 31, ensuring distributions reach shareholders without delay.
Who qualifies for the distribution payment?
To qualify, shareholders must be on record by the Ex-Dividend Date of December 15.
What sources fund the distributions?
Distributions may come from net investment income, capital gains, or returns of capital, depending on the Trust's earnings.
How can shareholders get more information about their investments?
Shareholders can visit the Trust’s website or contact their investor relations team for comprehensive support and information.
