XAI Octagon Floating Rate & Alternative Income Trust Declares its Monthly Common Shares Distribution of $0.077 per Share
XAI Octagon Floating Rate & Alternative Income Trust (NYSE: XFLT) has announced its monthly distribution of $0.077 per share for common shareholders, maintaining the same amount as the previous month. The distribution is payable on April 1, 2025, with a record date of March 17, 2025.
The Trust aims to generate attractive total returns with an emphasis on income generation across credit cycles. Under normal market conditions, it invests at least 80% of its Managed Assets in floating rate credit instruments and structured credit investments. The distributions may come from net investment income, capital gains, or return of capital, with specific tax characteristics to be reported on Form 1099.
The Trust is subject to a 4% excise tax if it doesn't distribute at least 98% of ordinary income and 98.2% of capital gains (adjusted for losses) to shareholders within specified timeframes. Distributions are subject to Board approval and various compliance requirements.
XAI Octagon Floating Rate & Alternative Income Trust (NYSE: XFLT) ha annunciato la sua distribuzione mensile di $0.077 per azione per gli azionisti comuni, mantenendo lo stesso importo del mese precedente. La distribuzione sarà pagabile il 1 aprile 2025, con una data di registrazione del 17 marzo 2025.
Il Trust mira a generare rendimenti totali attraenti con un'enfasi sulla generazione di reddito attraverso i cicli di credito. In condizioni di mercato normali, investe almeno l'80% delle sue Attività Gestite in strumenti di credito a tasso variabile e investimenti in credito strutturato. Le distribuzioni possono provenire da reddito da investimenti netti, guadagni in conto capitale o restituzione di capitale, con specifiche caratteristiche fiscali da riportare sul Modulo 1099.
Il Trust è soggetto a una tassa di consumo del 4% se non distribuisce almeno il 98% del reddito ordinario e il 98,2% dei guadagni in conto capitale (aggiustati per le perdite) agli azionisti entro determinati termini. Le distribuzioni sono soggette all'approvazione del Consiglio e a vari requisiti di conformità.
XAI Octagon Floating Rate & Alternative Income Trust (NYSE: XFLT) ha anunciado su distribución mensual de $0.077 por acción para los accionistas comunes, manteniendo el mismo monto que el mes anterior. La distribución se pagará el 1 de abril de 2025, con una fecha de registro del 17 de marzo de 2025.
El Trust tiene como objetivo generar rendimientos totales atractivos con un énfasis en la generación de ingresos a través de los ciclos de crédito. En condiciones normales de mercado, invierte al menos el 80% de sus Activos Administrados en instrumentos de crédito a tasa flotante e inversiones en crédito estructurado. Las distribuciones pueden provenir de ingresos netos por inversiones, ganancias de capital o devolución de capital, con características fiscales específicas que se informarán en el Formulario 1099.
El Trust está sujeto a un impuesto de consumo del 4% si no distribuye al menos el 98% de los ingresos ordinarios y el 98.2% de las ganancias de capital (ajustadas por pérdidas) a los accionistas dentro de los plazos especificados. Las distribuciones están sujetas a la aprobación de la Junta y a varios requisitos de cumplimiento.
XAI Octagon Floating Rate & Alternative Income Trust (NYSE: XFLT)는 보통주 주주에게 주당 $0.077의 월 배당금을 발표했으며, 이는 지난 달과 동일한 금액입니다. 배당금은 2025년 4월 1일에 지급되며, 기준일은 2025년 3월 17일입니다.
이 신탁은 신용 주기 전반에 걸쳐 수익 창출에 중점을 두고 매력적인 총 수익을 생성하는 것을 목표로 합니다. 일반적인 시장 상황에서는 관리 자산의 80% 이상을 변동 금리 신용 상품 및 구조화된 신용 투자에 투자합니다. 배당금은 순 투자 수익, 자본 이득 또는 자본 반환에서 나올 수 있으며, 특정 세무 특성은 1099 양식에 보고됩니다.
이 신탁은 정해진 기간 내에 보통 소득의 98%와 자본 이득의 98.2% (손실 조정 포함)를 주주에게 분배하지 않을 경우 4%의 소비세를 부과받습니다. 배당금은 이사회 승인과 다양한 준수 요구 사항에 따라야 합니다.
XAI Octagon Floating Rate & Alternative Income Trust (NYSE: XFLT) a annoncé sa distribution mensuelle de $0.077 par action pour les actionnaires ordinaires, maintenant le même montant que le mois précédent. La distribution sera payable le 1er avril 2025, avec une date d'enregistrement du 17 mars 2025.
Le Trust vise à générer des rendements totaux attrayants en mettant l'accent sur la génération de revenus à travers les cycles de crédit. Dans des conditions de marché normales, il investit au moins 80 % de ses actifs gérés dans des instruments de crédit à taux variable et des investissements en crédit structuré. Les distributions peuvent provenir de revenus d'investissement nets, de gains en capital ou de retours de capital, avec des caractéristiques fiscales spécifiques à déclarer sur le formulaire 1099.
Le Trust est soumis à une taxe de consommation de 4 % s'il ne distribue pas au moins 98 % des revenus ordinaires et 98,2 % des gains en capital (ajustés pour les pertes) aux actionnaires dans les délais spécifiés. Les distributions sont soumises à l'approbation du Conseil et à diverses exigences de conformité.
XAI Octagon Floating Rate & Alternative Income Trust (NYSE: XFLT) hat seine monatliche Ausschüttung von $0.077 pro Aktie für Stammaktionäre bekannt gegeben und bleibt damit auf dem gleichen Niveau wie im Vormonat. Die Ausschüttung ist am 1. April 2025 zahlbar, mit einem Stichtag am 17. März 2025.
Der Trust zielt darauf ab, attraktive Gesamterträge mit einem Schwerpunkt auf Einkommensgenerierung über die Kreditzyklen hinweg zu erzielen. Unter normalen Marktbedingungen investiert er mindestens 80% seiner verwalteten Vermögenswerte in variabel verzinste Kreditinstrumente und strukturierte Kreditinvestitionen. Die Ausschüttungen können aus Nettoanlageerträgen, Kapitalgewinnen oder Kapitalrückzahlungen stammen, wobei spezifische steuerliche Merkmale auf dem Formular 1099 angegeben werden.
Der Trust unterliegt einer Verbrauchssteuer von 4%, wenn er nicht mindestens 98% des ordentlichen Einkommens und 98,2% der Kapitalgewinne (verluste angepasst) innerhalb der festgelegten Fristen an die Aktionäre ausschüttet. Ausschüttungen unterliegen der Genehmigung durch den Vorstand und verschiedenen Compliance-Anforderungen.
- Consistent monthly distribution maintained at $0.077 per share
- None.
Insights
XAI Octagon Floating Rate & Alternative Income Trust (XFLT) has maintained its
The distribution's composition merits attention - it may include net investment income, capital gains, and/or return of capital. This structure has significant tax implications, as return of capital portions reduce an investor's cost basis rather than being immediately taxable as ordinary income. The Trust's detailed disclosure indicates they prioritize distribution stability, sometimes potentially exceeding the period's actual net investment income.
XFLT's investment focus on floating rate instruments and private credit markets positions it strategically in the current interest rate landscape. Floating rate products typically adjust yields when rates change, providing a natural hedge against interest rate fluctuations - an important feature in today's market environment.
For income-seeking investors, particularly retirees requiring consistent monthly cash flow, XFLT's commitment to maintaining its distribution schedule offers planning reliability. However, prudent investors should monitor the composition of these distributions over time, particularly the percentage derived from return of capital, as this impacts the sustainability of the yield and long-term total return prospects.
CHICAGO, March 03, 2025 (GLOBE NEWSWIRE) -- XAI Octagon Floating Rate & Alternative Income Trust (the “Trust”) has declared its regular monthly distribution of
The following dates apply to the declaration:
| Ex-Dividend Date | March 17, 2025 | |
| Record Date | March 17, 2025 | |
| Payable Date | April 1, 2025 | |
| Amount | ||
| Change from Previous Month | No change | |
Common share distributions may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Trust’s common shareholders on Form 1099 after the end of the 2025 calendar year. Shareholders should not assume that the source of a distribution from the Trust is net income or profit. For further information regarding the Trust’s distributions, please visit www.xainvestments.com.
The Trust’s net investment income and capital gain can vary significantly over time; however, the Trust seeks to maintain more stable common share monthly distributions over time. The Trust’s investments in CLOs are subject to complex tax rules and the calculation of taxable income attributed to an investment in CLO subordinated notes can be dramatically different from the calculation of income for financial reporting purposes under accounting principles generally accepted in the United States (“U.S. GAAP”), and, as a result, there may be significant differences between the Trust’s GAAP income and its taxable income. The Trust’s final taxable income for the current fiscal year will not be known until the Trust’s tax returns are filed.
As a registered investment company, the Trust is subject to a
The common share distributions paid by the Trust for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Trust, up to the amount of the common shareholder’s tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder’s potential gain, or reduce the common shareholder’s potential loss, on any subsequent sale or other disposition of common shares.
The distribution shall be paid on the Payment Date unless the payment of such distribution is deferred by the Board of Trustees upon a determination that such deferral is required in order to comply with applicable law to ensure that the Trust remains solvent and able to pay its debts as they become due and continue as a going concern, or to comply with the applicable terms or financial covenants of the Trust’s senior securities.
Future common share distributions will be made if and when declared by the Trust’s Board of Trustees, based on a consideration of number of factors, including the Trust’s continued compliance with terms and financial covenants of its senior securities, the Trust’s net investment income, financial performance and available cash. There can be no assurance that the amount or timing of common share distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of common share distributions in the future.
The investment objective of the Trust is to seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle. The Trust seeks to achieve its investment objective by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest at least
The Trust’s common shares are traded on the New York Stock Exchange under the symbol “XFLT,” and the Trust’s
About XA Investments
XA Investments LLC (“XAI”) serves as the Trust’s investment adviser. XAI is a Chicago-based firm founded by XMS Capital Partners in 2016. XAI serves as the investment adviser for two listed closed-end funds and an interval closed-end fund. The listed closed-end funds, the XAI Octagon Floating Rate & Alternative Income Trust (NYSE: XFLT) and XAI Madison Equity Premium Income Fund (NYSE: MCN) both trade on the New York Stock Exchange. The interval closed-end fund, Octagon XAI CLO Income Fund (OCTIX), is newly launched and has been made widely available to investors.
In addition to investment advisory services, the firm also provides investment fund structuring and consulting services focused on registered closed-end funds to meet institutional client needs. XAI offers custom product build and consulting services, including development and market research, sales, marketing, fund management.
XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. XAI provides individual investors with access to institutional-caliber alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services firm providing M&A, corporate advisory and asset management services to clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Octagon Credit Investors
Octagon Credit Investors, LLC (“Octagon”) serves as the Trust’s investment sub-adviser. Octagon is a 30+ year old,
XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Trust carefully before investing. For more information on the Trust, please visit the Trust’s webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
| NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE | ||
Paralel Distributors, LLC – Distributor
Media Contact:
Kimberly Flynn, President
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
FAQ
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