Chicago, Illinois, September 5, 2017 — XA Investments LLC (“XAI”), a new investment advisory firm dedicated to providing innovative alternative investment strategies for individual investors, today announced the commencement of the initial public offering of its first closed-end fund, XAI Octagon Floating Rate & Alternative Income Term Trust (“XFLT” or the “Trust”). The Trust seeks attractive total return with an emphasis on income generation across multiple stages of the credit cycle by investing in a dynamically managed portfolio of opportunities primarily within the private credit markets. Under normal market conditions, the Trust will invest primarily in floating rate credit instruments and other structured credit investments.
As sub-adviser to the Trust, Octagon Credit Investors, LLC (“Octagon”) will be responsible for management of the Trust’s portfolio. With $16 billion in assets under management (as of June 30, 2017), Octagon brings an experienced team of investment professionals and a 23-year track record to the management of the Trust.
“XFLT is the first of a series of distinctive, demand-driven alternative investment opportunities designed by XAI to provide investors access to institutional quality investment strategies managed by an industry recognized sub-adviser to achieve attractive portfolio outcomes,” said Ted Brombach, Co-Chief Executive Officer of XAI and co-founding partner of XMS Capital Partners, LLC (“XMS”), XAI’s parent company.
“XFLT offers several important benefits to investors – access to an institutional alternative credit strategy that seeks opportunities to generate higher levels of monthly income, diversification from stocks and bonds, no performance fees, exchange-traded liquidity, transferability between accounts and firms, a simple 1099 tax form and a floating rate strategy that limits interest rate sensitivity,” added John “Yogi” Spence, Co-Chief Executive Officer of XAI and co-founding partner of XMS.
The Trust is registered under the Investment Company Act of 1940, as amended, and will offer its shares on a limited basis from September 5 until September 26, 2017. The Trust’s common shares have been approved for listing on the New York Stock Exchange, subject to notice of issuance, under the trading or “ticker” symbol “XFLT.” For further information regarding the Trust, please visit www.xainvestments.com.
About XA Investments
XAI is a Chicago-based firm founded by XMS in April, 2016. XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. XAI provides investors with access to alternative managers previously only available to institutional investors. It will partner with established asset managers with proven capabilities in alternative credit, private debt and select hedge fund strategies.
XMS, established in 2006, is a global, independent, financial services firm providing M&A, corporate advisory and asset management services to clients. It has offices in Chicago, London and Dublin. XMS provides Involvement BankingTM, which goes beyond transaction oriented investment banking and focuses on delivering objective, value-added advice and custom-tailored solutions to help clients achieve their strategic goals. It consistently creates value for its clients by giving them access to comprehensive, independent M&A, strategic advisory, financial restructuring, capital structure advisory and private capital advisory expertise. All XMS engagements are led by senior investment bankers who average over 25 years of industry experience. XMS is a FINRA member and SIPC member. For more information, please visit www.xmscapital.com.
Octagon is a 23-year old investment adviser based out of New York that manages $16.0 billion in assets (as of 6/30/17) while specializing in below-investment grade corporate credit. Octagon focuses on leveraged loans, high yield bonds and structured credit. Through fundamental credit analysis and active portfolio management, Octagon’s investment team identifies attractive relative value opportunities across below-investment grade asset classes, sectors and issuers. Octagon’s investment philosophy and methodology encourage and rely upon dynamic internal communication to manage portfolio risk. Throughout its history, Octagon has applied a disciplined, repeatable and scalable approach in its effort to generate attractive risk-adjusted returns to its investors.
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The Trust is a newly-organized, diversified, closed-end management investment company with no history of operation. Shares of closed-end investment companies frequently trade at a discount from their net asset value. The risk of loss due to this discount may be greater for investors who expect to sell their shares in a relatively short period after completion of the offering.
A registration statement relating to the shares of the Trust has been filed with the Securities and Exchange Commission, but is not yet effective. The shares may not be sold until the registration statement is effective. This is not an offer to sell these shares and is not soliciting an offer to buy these shares in any jurisdiction where the offer or sale is not permitted. This is not an offering, which can only be made by a final prospectus.
Consider the investment objective, risks, charges and expenses of the Trust carefully before investing. An investment in the Trust involves risks and is not appropriate for all investors and is not intended to be a complete investment program. The preliminary prospectus contains this and other relevant information. Please read the preliminary prospectus carefully before investing. For a summary of the risks associated with an investment in the Trust please see the “Risks” section of the preliminary prospectus.
This document is not an offer to sell securities and is not a solicitation of an offer to buy securities, nor will there be any sales of securities in any jurisdiction where the offer or sale is not permitted.
An investment in the Trust involves risk, including loss of principal. Past performance is no guarantee of future results.
This material may include statements that constitute “forward-looking statements” under the U.S. securities laws. Forward-looking statements include, among other things, projections, estimates and information about possible or future results related to the Trust, market or regulatory developments. The views expressed herein are for informational purposes only and are not guarantees of future performance or economic results and involve certain risks, uncertainties and assumptions that could cause actual outcomes and results to differ materially from the views expressed herein. The views expressed herein are subject to change at any time based upon economic, market, or other conditions and the Trust undertakes no obligation to update the views expressed herein. While this information is gathered from sources believed to be reliable, the Trust cannot guarantee the accuracy of the information provided. The views expressed herein do not constitute a recommendation to buy, sell or hold any security. The views expressed herein (including any forward-looking statement) may not be relied upon as investment advice or as an indication of the Trust’s trading intent.
NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE
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Hank Hakewill, Hakewill & Associates
Phone: 847-256-5420 (office); 847-714-6561 (cell)