XAI Octagon Floating Rate & Alternative Income Term Trust ( (XFLT) ) has shared an announcement.

On July 30, 2026, XAI Floating Rate & Alternative Income Trust terminated its prior sub-advisory agreement with Octagon Credit Investors and entered into an interim investment sub-advisory agreement with Rockford Tower Asset Management, a King Street Capital subsidiary. The fund convened a special shareholder meeting that day to approve a new long-term sub-advisory agreement, but adjourned it to August 6, 2026 to solicit additional proxies.

Under the interim arrangement, King Street’s sub-adviser will provide services on substantially the same terms as the previous sub-adviser, with the Trust’s investment objective, policies and advisory fee rate unchanged. The King Street sub-adviser will receive 52% of the 1.70% advisory fee on managed assets and may be reimbursed for certain management-related expenses, subject to a cap of 0.07% of average daily net assets and board approval.

The interim agreement will automatically terminate upon shareholder approval of the new sub-advisory contract or after 150 days, and can also be ended on 60 days’ notice by any party or upon assignment or termination of the main advisory agreement. In connection with the change, King Street partner Young Choi became lead portfolio manager and partner Terry Ing joined as portfolio manager, bringing extensive experience in leveraged loans, CLOs and credit strategies, which may influence the Trust’s portfolio management approach and positioning in the alternative credit market.