XAI Floating Rate & Alternative Income Trust announces $0.225 per share distribution
CHICAGO, Sept. 01, 2026 /CourierPR/ -- XAI Floating Rate & Alternative Income Trust has announced its regular monthly distribution of $0.225 per share, to be paid on October 1, 2026, to shareholders of record as of September 15, 2026. This amount remains unchanged from the previous month.
The Trust, which seeks to generate attractive total return with an emphasis on income generation, has seen a recent enhancement in its advisory structure. As of August 6, 2026, it entered into a sub-advisory agreement with Rockford Tower Asset Management, L.L.C., a wholly owned subsidiary of King Street Capital Management, L.P. This move aims to leverage Rockford Tower’s expertise in managing complex credit instruments.
The Trust’s distribution may originate from various sources, including net investment income, capital gains, or a return of capital. Shareholders should not assume that the source of the distribution is net income or profit. The specific tax characteristics of the distribution will be reported on Form 1099 after the end of the 2026 calendar year.
The Trust’s net investment income and capital gains can fluctuate significantly, but it strives to maintain more stable monthly distributions. Its investments in collateralized loan obligations (CLOs) are subject to complex tax rules, leading to potential discrepancies between its GAAP income and taxable income. The Trust’s final taxable income for the current fiscal year will not be known until its tax returns are filed.
As a registered investment company, the Trust is subject to a 4% excise tax if it fails to distribute at least 98% of its ordinary income and 98.2% of its capital gains by the end of the calendar year. The Board of Trustees may decide to retain income or capital gain if they determine it is in the best interest of shareholders.
The distribution may be more than the net investment income for a given period, potentially leading to a return of capital. This can reduce the shareholder’s tax basis but does not affect the distribution’s tax treatment. The Trust’s Board of Trustees retains the discretion to declare future distributions based on various factors, including its financial performance and available cash.
The investment objective of the Trust is to generate attractive total return through a portfolio of floating rate credit instruments and other structured credit investments. XAI Investments LLC, the Trust’s investment adviser, plays a key role in managing this portfolio. XAI, founded in 2016 by XMS Capital Partners, serves as the investment adviser for two listed closed-end funds and an interval closed-end fund, and provides investment fund structuring and consulting services.
Rockford Tower Asset Management, a subsidiary of King Street Capital Management, brings substantial experience in managing CLOs and other structured credit investments. King Street, founded in 1995, manages $30 billion in assets across public and private markets.
For more detailed information on the Trust’s investment policies and risks, potential tax implications, and other relevant disclosures, investors are encouraged to visit the Trust’s webpage at www.xainvestments.com.