XFLT Manager Details 54% NAV Erosion and Octagon CLO Defaults Ahead of July 30 Vote
XFLT sits 17% above its 52-week low of $14.925.
Summary
XA Investments President Kimberly Flynn released videos directly to shareholders, detailing the terminated sub-adviser Octagon's performance: XFLT's NAV per share declined 54.40% since inception, eroding approximately $406.7 million as of March 31. Flynn also highlighted that Octagon-managed CLOs suffered seven debt tranche defaults across five CLOs in 2026—more than the global total in each of the prior two years. The Board unanimously selected King Street's Rockford Tower division, citing its larger credit team, $30 billion in assets, and plans to expand into European CLOs and asset-backed securities. This escalates the proxy fight ahead of the July 30 special meeting, where shareholders vote on the sub-adviser replacement. The detailed performance claims and default data provide new ammunition for the Board's campaign, potentially swaying undecided voters.
At the time of this announcement, XFLT was trading at $17.50 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 negative market sentiment and an importance score of 7 out of 10. Source: GlobeNewswire.