XAI Octagon Floating Rate Trust Confirms Monthly Distribution

XAI Octagon Floating Rate Trust Announces Monthly Share Distribution

XAI Octagon Floating Rate & Alternative Income Trust (NYSE: XFLT) has maintained its monthly distribution of $0.085 per common share, a confirmation for regular shareholders. This distribution underlines the Trust’s commitment to providing a steady income stream to its investors through well-managed financial strategies.

Distribution Details and Important Dates

The important dates surrounding the distribution include the ex-dividend date and record date, both set for November 15, 2024, while the actual payment will occur on December 2, 2024. This structure ensures that common shareholders are accurately informed about their entitlement to the monthly distribution.

Ex-Dividend Date

Shareholders must be aware that the ex-dividend date is crucial. To be eligible for the upcoming $0.085 per share distribution, shares must be purchased before this date.

Record Date and Payable Date

As mentioned, November 15, 2024, serves as the record date, confirming who qualifies to receive the payment. Following this, the payable date of December 2, 2024, ensures that distributions are processed efficiently.

Understanding Distributions from the Trust

It’s essential to recognize that common share distributions emanate from various financial approaches, including net investment income, capital gains, or a return of capital. Investors should consult Form 1099, which the Trust will provide, to gain insights into the tax characteristics of their distributions at the close of the fiscal year.

Implications of Distributions

While distributions are consistent, potential investors need to understand that these distributions might not always stem from net profits. The structure of these distributions reflects a balanced approach taken by the Trust to ensure reliable income while adhering to regulations and maintaining operational viability.

Investment Strategies and Financial Overview of the Trust

The investment strategy of XAI Octagon Floating Rate Trust focuses on generating attractive total returns, particularly emphasizing income generation. The Trust typically invests a significant portion of its Managed Assets in floating-rate credit instruments and structured credit investments—areas inherently subject to varying financial performances.

About XAI Investments

Founded in 2016 and based in Chicago, XA Investments LLC operates as the Trust's investment adviser. The firm specializes in providing investment fund structuring and advisory services, particularly for closed-end funds tailored to meet the needs of institutional clients. Their mission is to broaden investors' access to alternative investment strategies.

What Risks Come with Investing?

With the potential for capital losses or reduced returns, investors are urged to evaluate their investment objectives, risk tolerance, and market conditions. The Trust’s common shares trade on NYSE under the symbol “XFLT,” well-positioning them in a competitive market.

Future Distributions and Investor Considerations

Looking ahead, the distribution payments rely heavily on financial performance, compliance with debt agreements, and overall investment income generated by the Trust. The Trust has set a precedent of evaluating conditions thoroughly before declaring distributions.

Commitment to Stability

Despite market fluctuations and varying performance, the Trust remains steadfast in its mission to provide stable monthly distributions. Shareholders are encouraged to monitor updates related to distribution changes as determined by the Trust’s Board of Trustees.

Frequently Asked Questions

1. What is the current monthly distribution amount?

The current monthly distribution amount is $0.085 per common share.

2. When is the ex-dividend date for the upcoming payment?

The ex-dividend date is set for November 15, 2024.

3. How often does the Trust declare distributions?

The Trust typically declares monthly distributions to its common shareholders.

4. Can shareholders expect changes to the distribution amount?

Future distributions are contingent on various financial factors and may fluctuate; however, the Trust aims for stability.

5. Who manages the investments for the Trust?

XA Investments LLC serves as the Trust's investment adviser, with support from Octagon Credit Investors, LLC as the investment sub-adviser.

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