\nOctagon Credit Investors, LLC (\u201cOctagon\u201d or \u201cour\u201d), a leading credit-focused asset manager with 30 years of experience, today responded to the ongoing false claims made by XAI Floating Rate & Alternative Income Trust (NYSE: XFLT) (formerly, XAI Octagon Floating Rate & Alternative Income Trust) (the \u201cFund\u201d or \u201cXFLT\u201d) in connection with XFLT\u2019s upcoming special meeting of shareholders, which is scheduled to be held on July 30, 2026 (the \u201cSpecial Meeting\u201d).<\/p>\n
\n\u201cIt is disappointing to watch the XFLT Board of Trustees marshal illogical arguments and attempt to rewrite history to benefit XAI, the founders of which have been the Trustees\u2019 benefactors for years. At the upcoming meeting, the Board is seeking to replace Octagon, the Fund\u2019s longstanding sub-adviser and investment manager, while increasing the fees flowing into the hands of XAI, seemingly to support XAI\u2019s subscale business.<\/p>\n
\nThis move enriches XAI, XFLT\u2019s investment advisor, rather than serving the interests of the Fund\u2019s shareholders.<\/p>\n
\nIn advocating for the change, the Board appears to have ignored the most critical fact: under Octagon\u2019s management, the Fund\u2019s underlying investments outperformed their relevant indices, while the Fund itself outperformed its peers on both a total shareholder return and NAV return basis. No matter how many press releases the Board issues claiming otherwise, those facts will remain true.<\/p>\n
\nMoreover, the Board appears to have used questionable criteria and exercised inadequate diligence in selecting King Street to replace Octagon. King Street has experienced a recent wave of poor performance in various funds and client withdrawals so severe that it has reportedly imposed significant restrictions on client redemptions from its flagship investment vehicle1<\/sup>. It appears that at the urging of XAI, the Board blindly selected King Street, which agreed to act as sub-adviser at a discounted fee. Doing so provides XAI with increased fees, with no tangible benefits to shareholders.<\/p>\n \nOctagon believes shareholders deserve better. In our view, the XFLT Board should be reconstituted with shareholder-focused directors, the Fund\u2019s fee structure should be lowered, distributions should be stabilized and action should be taken quickly to narrow the Fund\u2019s discount to NAV.\u201d<\/p>\n \nShareholders with questions or who need assistance voting their proxy card AGAINST<\/b> the approval of a new sub-advisory agreement should contact Octagon’s proxy solicitor:<\/p>\n Saratoga Proxy Consulting LLC Advisors About Octagon Credit Investors \nOctagon is majority-owned by Conning,2<\/sup> a leading global investment management firm with a long history of serving insurance companies and other institutional investors. Octagon and Conning are part of Generali Investments,3<\/sup> a platform of asset management firms operating in more than 20 countries, offering distinctive strategies in public and private markets and expert insights to help investors achieve long-term performance. Generali Investments is the asset management arm of the Generali Group, one of the world’s largest insurance and asset management players.<\/p>\n \nFor more information, please visit www.octagoncredit.com<\/a>.<\/p>\n Important Information \nTHE PARTICIPANTS STRONGLY ADVISE ALL SHAREHOLDERS OF THE FUND TO READ THE DEFINITIVE PROXY STATEMENT AND OTHER PROXY MATERIALS, INCLUDING THE BLUE PROXY CARD, THAT HAVE BEEN OR WILL BE FILED BY SUCH PARTICIPANTS BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION. SUCH PROXY MATERIALS ARE OR WILL BE AVAILABLE AT NO CHARGE ON THE SEC\u2019S WEBSITE AT HTTP:\/\/WWW.SEC.GOV<\/a>. IN ADDITION, THE PARTICIPANTS WILL PROVIDE COPIES OF THE DEFINITIVE PROXY STATEMENT WITHOUT CHARGE UPON REQUEST.<\/p>\n 1<\/sup>See<\/i>https:\/\/www.bloomberg.com\/news\/articles\/2026-07-15\/king-street-restricts-client-withdrawals-from-its-hedge-fund<\/a> (July 15, 2026).<\/p>\n 2 <\/sup>Conning, Inc., Goodwin Capital Advisers, Inc., Conning Investment Products, Inc., a FINRA-registered broker-dealer, Conning Asset Management Limited, Conning Asia Pacific Limited, Octagon Credit Investors, LLC, Global Evolution Holding ApS and its subsidiaries, and Pearlmark Real Estate, L.L.C. and its subsidiaries are all direct or indirect subsidiaries of Conning Holdings Limited (collectively, \u201cConning\u201d) which is one of the family of companies whose controlling shareholder is Generali Investments Holding S.p.A. (\u201cGIH\u201d) a company headquartered in Italy. Assicurazioni Generali S.p.A. is the ultimate controlling parent of all GIH subsidiaries.<\/p>\n 3 <\/sup>Generali Investments Holding S.p.A., data as at end of Q4 2025 net of double counting. Generali Investments is part of the Generali Group, which was established in 1831 in Trieste as Assicurazioni Austro-Italiche. Generali Asset Management S.p.A. Societ\u00e0 di gestione del risparmio, Generali Real Estate S.p.A. Societ\u00e0 di gestione del risparmio, Infranity SAS, Sosteneo S.p.A. Societ\u00e0 di gestione del risparmio, Sycomore Asset Management, Aperture Investors LLC (including Aperture Investors UK Ltd), Lumyna Investments Limited, Plenisfer Investments S.p.A. Societ\u00e0 di gestione del risparmio, Conning, Inc., Conning Asset Management Limited, Conning Asia Pacific Limited, Conning Investment Products, Inc., Goodwin Capital Advisers, Inc. (collectively, \u201cConning\u201d) and its subsidiaries (Global Evolution Asset Management A\/S – including Global Evolution USA, LLC and Global Evolution Fund Management Singapore Pte. Ltd- Octagon Credit Investors, LLC, Pearlmark Real Estate, LLC and PREP Investment Advisers LLC) are part of Generali Investments, as well as Generali Investments CEE. Please note that the countries refers to the countries where the different funds of the asset management companies that are part of Generali Investments are registered for distribution. Please note that not all funds are registered in all the countries and not all the asset management companies are licensed to operate in such countries. Generali Investments Holding S.p.A. is the holding company holding, directly or indirectly, a majority of the shares in the asset management companies listed above.<\/p>\n View source version on businesswire.com: <\/span>https:\/\/www.businesswire.com\/news\/home\/20260717011270\/en\/<\/a><\/span><\/p>\n Investor Contacts Media Contact KEYWORDS:<\/b> United States North America New York<\/p>\n INDUSTRY KEYWORDS:<\/b> Professional Services Finance<\/p>\n
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<\/b>(212) 257-1311 | (888) 368-0379 (toll-free)
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info@saratogaproxy.com<\/a><\/p>\n
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<\/b>Sidley Austin LLP is serving as legal counsel to Octagon. Spotlight Advisors LLC is providing strategic and financial advice to Octagon and Gagnier Communications is providing communications advice. Saratoga Proxy Consulting is serving as Octagon\u2019s proxy solicitor.<\/p>\n
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<\/b>Founded in 1994, Octagon Credit Investors is a $32 billion asset manager specializing in broadly syndicated loan, structured credit, multi-asset credit, and direct lending strategies. Octagon\u2019s disciplined, time-tested investment process relies on fundamental credit analysis and active portfolio management to generate attractive risk-adjusted performance for its clients.<\/p>\n
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<\/b>Octagon Credit Investors, LLC (\u201cOctagon\u201d), together with Gretchen Lam and Lauren Law (collectively, the \u201cParticipants\u201d), has filed a definitive proxy statement on Schedule 14A, accompanying BLUE<\/b> proxy card, and other relevant documents with the U.S. Securities and Exchange Commission (the \u201cSEC\u201d) in connection with the solicitation of proxies to vote AGAINST<\/b> the approval of a new sub-advisory agreement at the special meeting of shareholders of the XAI Floating Rate & Alternative Income Trust (the \u201cFund\u201d) scheduled to be held on July 30, 2026.<\/p>\n<\/p>\n
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John Ferguson \/ Joseph Mills
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Saratoga Proxy Consulting LLC
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jferguson@saratogaproxy.com
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jmills@saratogaproxy.com
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(212) 257-1311
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(888) 368-0379<\/p>\n
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Riyaz Lalani \/ Dan Gagnier
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Gagnier Communications
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Octagon@gagnierfc.com
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(646) 342-8087<\/p>\n
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