XAI Octagon Trust Announces Monthly Distribution Update
XAI Octagon Trust Declares Monthly Distribution of $0.070
In an important announcement, XAI Octagon Floating Rate & Alternative Income Trust has declared its regular monthly distribution of $0.070 per common share. This distribution is notable because it represents a decrease of approximately 9.09% compared to the previous month’s distribution of $0.077 per share.
Understanding the Trust’s Investment Strategy
The Trust’s primary goal is to achieve an attractive total return through income generation, particularly as it navigates various stages of the credit cycle. Recently, the investment environment has been marked by significant volatility, significantly impacting the yields of loans and CLO (Collateralized Loan Obligation) asset classes. These fluctuations often stem from broader economic factors, including ongoing trade tensions and tariffs, which have heightened market uncertainty.
Latest Distribution Insights
With the revised distribution amount, the Trust’s annualized distribution rate based on market price is reported at a favorable 14.51%, while the annualized distribution rate calculated on NAV stands at 13.86% as of the latest market close.
Key Dates for Shareholders
The following crucial dates have been set for the current distribution cycle:
- Ex-Dividend Date: June 16
- Record Date: June 16
- Payable Date: July 1
- Distribution Amount: $0.070 per common share
- Change from Previous Month: 9.09% decrease
Details on Distribution Sources
Common share distributions are typically funded through net investment income, capital gains, or even a return of capital. Shareholders can expect specific details regarding the tax characteristics of these distributions on Form 1099 at the end of the calendar year. As regulations may vary, it is crucial for shareholders to understand that the source of these distributions does not always equate to net profit.
Upcoming Quarterly Webinar
The Trust is also set to host its Q1 Webinar on an upcoming date. Kevin Davis, Managing Director at XA Investments, will lead the discussion alongside Kimberly Flynn, President at XA Investments, and Lauren Law, Senior Portfolio Manager at Octagon Credit Investors. This session will be a Q&A format, providing an interactive platform for shareholders to engage with the management team.
How to Join the Webinar
To participate, shareholders can navigate to the Knowledge Bank section on the XAI Investments website for online registration. For those preferring to join via telephone, several dial-in options are available, including:
- (312) 626-6799
- (646) 558-8656
- (267) 831-0333
- (213) 338-8477
- (720) 928-9299
The Webinar ID is 817 1030 7383, and a replay will be accessible afterward on the XAI Investments website.
Financial Considerations and Outlook
Investment income and capital gains can fluctuate significantly over time; however, the Trust strives to maintain consistent monthly distributions. It’s essential for shareholders to be aware that common share distributions might surpass net investment income during certain periods. This excess may constitute a return of capital, effectively reducing a shareholder's tax basis in their investment.
Future Distributions
While future distributions depend on various considerations, including compliance with financial covenants and overall financial performance, there are no guarantees about the amount or timing of these distributions. Changes in market conditions may prompt the Board of Trustees to suspend or adjust common share distributions as necessary.
About XAI Investments
XA Investments LLC serves as the Trust’s investment adviser, focused on providing alternative investment strategies and opportunities. As a firm founded in 2016, XAI has established itself within the market, managing investment vehicles that cater to a diverse clientele.
Frequently Asked Questions
What is the monthly distribution amount declared for XFLT?
The Trust declared a monthly distribution of $0.070 per common share.
What factors influence the distribution rate?
The distribution rate is influenced by the Trust's net investment income, market conditions, and compliance with financial covenants.
Where can I find more information about the Trust's performance?
Detailed information can be accessed through the Trust’s official website.
How can I participate in the Trust’s upcoming webinar?
Shareholders can register through the Knowledge Bank section of the XAI Investments website.
What investment strategies does the Trust employ?
The Trust focuses on income generation through a portfolio primarily invested in floating rate credit instruments and structured credit opportunities.
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