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 (XFLT) has announced its monthly distribution of $0.077 per share, maintaining the same amount as the previous month. The distribution will be payable on March 3, 2025, to shareholders of record as of February 18, 2025.
The Trust, which focuses on generating attractive total returns with emphasis on income across credit cycles, invests at least 80% of its Managed Assets in floating rate credit instruments and structured credit investments under normal market conditions. Distributions may come from net investment income, capital gains, or return of capital, with specific tax characteristics to be reported on Form 1099 after the 2025 calendar year.
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 annually. Distributions might exceed net investment income, potentially resulting in a return of capital to shareholders.
XAI Octagon Floating Rate & Alternative Income Trust (XFLT) ha annunciato la propria distribuzione mensile di $0,077 per azione, mantenendo lo stesso importo del mese precedente. La distribuzione sarà pagabile il 3 marzo 2025, agli azionisti registrati al 18 febbraio 2025.
Il Trust, che si concentra sulla generazione di rendimenti totali attraenti con un'enfasi sul reddito attraverso i cicli di credito, investe almeno l'80% dei suoi Attivi Gestiti in strumenti di credito a tasso variabile e investimenti in credito strutturato, in condizioni di mercato normali. Le distribuzioni possono derivare da reddito da investimento netto, plusvalenze o restituzione di capitale, con caratteristiche fiscali specifiche che saranno riportate sul Modulo 1099 dopo l'anno solare 2025.
Il Trust è soggetto a una tassa d'imposta del 4% se non distribuisce almeno il 98% del reddito ordinario e il 98,2% delle plusvalenze annualmente. Le distribuzioni potrebbero superare il reddito da investimento netto, risultando potenzialmente in una restituzione di capitale agli azionisti.
XAI Octagon Floating Rate & Alternative Income Trust (XFLT) ha anunciado su distribución mensual de $0.077 por acción, manteniendo la misma cantidad que el mes anterior. La distribución se pagará el 3 de marzo de 2025, a los accionistas registrados a partir del 18 de febrero de 2025.
El Trust, que se centra en generar atractivos rendimientos totales con énfasis en ingresos a través de los ciclos de crédito, invierte al menos el 80% de sus Activos Administrados en instrumentos de crédito a tasa variable e inversiones de crédito estructurado bajo condiciones de mercado normales. Las distribuciones pueden provenir de ingresos netos de inversión, ganancias de capital, o retorno de capital, con características fiscales específicas que se reportarán en el Formulario 1099 después del año calendario 2025.
El Trust está sujeto a un impuesto de 4% si no distribuye al menos el 98% de los ingresos ordinarios y el 98.2% de las ganancias de capital anualmente. Las distribuciones podrían exceder los ingresos netos de inversión, lo que podría resultar en un retorno de capital a los accionistas.
XAI Octagon Floating Rate & Alternative Income Trust (XFLT)는 주당 $0.077의 월 배당금을 발표했으며, 이는 이전 달과 동일한 금액입니다. 이 배당금은 2025년 3월 3일에 지급될 예정이며, 2025년 2월 18일 기준 주주에게 지급됩니다.
신탁은 신용 사이클 전반에 걸쳐 수익에 중점을 두고 매력적인 전체 수익을 생성하는 것을 목표로 하며, 정상적인 시장 조건에서 관리 자산의 최소 80%를 변동 금리 신용 상품 및 구조화 신용 투자에 투자합니다. 분배금은 순 투자 수익, 자본 이득 또는 자본 반환에서 나올 수 있으며, 특정 세금 특성은 2025년 세무 연도 이후에 1099 양식에 보고됩니다.
신탁은 일반 소득의 98% 이상 및 자본 이득의 98.2% 이상을 연간 분배하지 않을 경우 4%의 세금 부과 대상입니다. 분배금은 순 투자 수익을 초과할 수 있으며, 이는 주주에게 자본 반환으로 이어질 수 있습니다.
XAI Octagon Floating Rate & Alternative Income Trust (XFLT) a annoncé sa distribution mensuelle de 0,077 $ par action, maintenant le même montant que le mois précédent. La distribution sera payée le 3 mars 2025, aux actionnaires enregistrés au 18 février 2025.
Le Trust, qui se concentre sur la génération de rendements totaux attrayants avec un accent sur le revenu à travers les cycles de crédit, investit au moins 80 % de ses actifs gérés dans des instruments de crédit à taux flottant et des investissements en crédit structuré dans des conditions de marché normales. Les distributions peuvent provenir de revenus nets d'investissement, de gains en capital ou de retour de capital, avec des caractéristiques fiscales spécifiques qui seront rapportées sur le formulaire 1099 après l'année civile 2025.
Le Trust est soumis à une taxe d'accise de 4 % s'il ne distribue pas au moins 98 % des revenus ordinaires et 98,2 % des gains en capital chaque année. Les distributions peuvent dépasser le revenu net d'investissement, entraînant potentiellement un retour de capital aux actionnaires.
XAI Octagon Floating Rate & Alternative Income Trust (XFLT) hat seine monatliche Ausschüttung von 0,077 $ pro Aktie bekannt gegeben und bleibt somit unverändert zum Vormonat. Die Ausschüttung ist am 3. März 2025 an die Aktionäre zahlbar, die am 18. Februar 2025 registriert sind.
Der Trust konzentriert sich darauf, über alle Kreditzyklen hinweg attraktive Gesamterträge zu erzielen, wobei der Schwerpunkt auf Einkünften liegt. Er investiert mindestens 80% seiner verwalteten Vermögenswerte in Kreditinstrumente mit variablem Zinssatz und strukturierte Kreditinvestitionen unter normalen Marktbedingungen. Ausschüttungen können aus Nettoanlageerträgen, Kapitalgewinnen oder Kapitalrückzahlungen stammen, wobei spezifische steuerliche Merkmale nach dem Kalenderjahr 2025 im Formular 1099 berichtet werden.
Der Trust unterliegt einer Verbrauchsteuer von 4 %, wenn er nicht mindestens 98 % des ordentlichen Einkommens und 98,2 % der Kapitalgewinne jährlich ausschüttet. Ausschüttungen könnten die Nettogewinne aus Investitionen übersteigen, was möglicherweise zu einer Kapitalrückzahlung an die Aktionäre führt.
- Consistent monthly distribution maintained at $0.077 per share
- Diversified investment strategy with 80% of assets in floating rate instruments
- Distributions may include return of capital, potentially reducing shareholders' tax basis
- Subject to 4% excise tax if distribution requirements aren't met
Insights
The maintenance of XFLT's
A critical aspect to understand is the trust's distribution composition. While distributions can come from net investment income, capital gains, or return of capital, the latter requires careful investor attention. Return of capital distributions, while not immediately taxable, reduce an investor's cost basis and could impact future capital gains calculations. The trust's strategic focus on floating rate instruments (
The trust's CLO investments add complexity to the income structure but also provide potential for enhanced yields. The significant difference between GAAP income and taxable income in CLO investments creates opportunities for tax-efficient income generation, though this requires sophisticated portfolio management. The trust's adherence to the
The investment approach, emphasizing private credit markets and structured products, positions the trust to capture opportunities across different credit cycle stages. This diversification strategy, combined with the floating rate focus, provides potential resilience against market volatility while maintaining income generation potential.
CHICAGO, Feb. 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 | February 18, 2025 | |
| Record Date | February 18, 2025 | |
| Payable Date | March 3, 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, and 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 25+ 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
What is XFLT's latest monthly distribution amount for March 2025?
When is the ex-dividend date for XFLT's March 2025 distribution?
What percentage of XFLT's assets are invested in floating rate instruments?
What are the potential sources of XFLT's monthly distributions?
What tax rate applies if XFLT fails to meet distribution requirements?
