Octagon Urges XFLT Shareholders to Reject Sub-Adviser Change, Alleges XAI Fee Grab
XFLT is trading near its 52-week low of $14.925 (14% above the low).
Summary
Octagon, XFLT's sub-adviser since 2017, issued an open letter urging shareholders to vote against replacing it with King Street's Rockford Tower at the July 30 special meeting. The letter alleges the board's proposal disproportionately benefits adviser XAI through fee extraction, citing similar moves at two other XAI-advised funds. It also claims King Street faces partner departures, client withdrawals, and performance issues, and that the board's diligence was deficient—only two meetings before selecting an unproven manager. In response, XFLT has outlined numerous benefits of the King Street sub-adviser proposal to shareholders ahead of the upcoming proxy vote. The vote on July 30 will determine whether Octagon remains or King Street takes over, with significant implications for fund performance and fees.
At the time of this announcement, XFLT was trading at $17.00 on NYSE in the Finance sector, with a market capitalization of approximately $265.3M. The 52-week trading range was $14.93 to $28.50. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: BusinessWire.