XAI Floating Rate & Alternative Income Trust · NYSE:XFLT
XAI Floating Rate & Alternative Income Trust — Proxy Contest (July 2026)
34 slides from XAI Floating Rate & Alternative Income Trust's proxy contest presentation, Jul 1, 2026
Slide 1: Important Shareholder Update: XFLT & OCTIX Shareholder Proposals and Portfolio Manager Introduction
Important Shareholder Update: XFLT & OCTIX Shareholder Proposals and Portfolio Manager Introduction June 30, 2026 Your Vote Matters! CONFIDENTIAL – INSTITUTIONAL USE ONLY – NOT FOR DISTRIBUTION
Slide 2: This presentation is intended to be educational in nature and is not for the
This presentation is intended to be educational in nature and is not for the purpose of recommending a particular investment. The investments discussed may or may not be suitable for the audience of this presentation. Neither XA Investments LLC (“XAI”), King Street Capital Management L.P. (“King Str
Slide 3: Executive Summary
Executive Summary XA INVESTMENTS LLC | XFLT & OCTIX Shareholder Proposals and Portfolio Manager Introduction June 30, 2026 | 3 Source: XA Investments LLC. Sub - Adviser Change • The Board of Trustees of each of XAI Floating Rate & Alternative Income Trust (“XFLT”) and XAI CLO & Income Opportunities
Slide 4: ITD Annualized Total Return
ITD Annualized Total Return 3 1 Year Total Return 6 Month Total Return Quarter - to - Date Total Return Inception Date OCTIX Net Returns 3.15% 2.98% - 2.00% - 2.64% 11/4/2024 Class I (OCTIX) 2.19% 4 2.63% - 2.17% - 2.73% 11/29/2024 Class A (OCTAX) 5.40% 5.86% 0.73% - 0.55% Benchmark 5 - 2.25% - 2.88
Slide 5: XFLT and OCTIX Quarter-end NAVs
XFLT and OCTIX Quarter - end NAVs Sources: XA Investments LLC; Paralel. Notes: Data as of 3/31/2026. The NAVs shown derive from the Fund’s books and records. Charts do not represent total return and are not inclusive of distributions. XFLT Quarter - End NAV (9/29/2017 - 3/31/2026) $60.00 54.40% Decr
Slide 6: Proposed Plan and Objectives
Proposed Plan and Objectives Source: XA Investments LLC. XA INVESTMENTS LLC | XFLT & OCTIX Shareholder Proposals and Portfolio Manager Introduction June 30, 2026 | 6 • The King Street Sub - Adviser will manage portfolios of both XFLT and OCTIX effective July 30, 2026 • Seek to improve yield and net
Slide 7: Shareholder Proxy Q&A
Shareholder Proxy Q&A Source: XA Investments LLC. XA INVESTMENTS LLC | XFLT & OCTIX Shareholder Proposals and Portfolio Manager Introduction June 30, 2026 | 7 1. Why did I receive this Proxy Statement? 2. Why did the Board approve the King Street Sub - Adviser as the new investment sub - adviser for
Slide 8: Introducing Young Choi, Portfolio Manager
Introducing Young Choi, Portfolio Manager Mr. Choi is a Partner and the Global Head of Trading at King Street and the Portfolio Manager of Rockford Tower Capital Management. He is based in New York and is a member of the Management Committee, Global Investment Committee, U.S. and European CLO Invest
Slide 9: King Street Overview
Sources: XA Investments LLC; King Street. Notes: King Street is the parent company of the King Street Sub - Adviser. 1995 Founding Year $30bn 1 AUM New York City, NY HQ Location London, Singapore, Virginia, Dublin, Tokyo, Dubai, and Menlo Park Additional Offices Privately Held; 100% Partner Owned Ow
Slide 10: The King Street Sub-Adviser Offers Expanded Opportunity Set
The King Street Sub - Adviser Offers Expanded Opportunity Set • Broadly Syndicated Loans • U.S. CLO Equity • European CLO Equity • U.S. CLO Debt • European CLO Debt • Asset - Backed Securities • CLO Warehouse Opportunities Sources: XA Investments LLC; King Street. XA INVESTMENTS LLC | XFLT & OCTIX S
Slide 11: XFLT and OCTIX Historical Overview
XFLT and OCTIX Historical Overview Performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be lower or higher than the performance data quoted. XA INVESTMENTS LLC | XFLT & OCTIX Shareholder Proposals and Portfolio Manager Intro
Slide 12: XFLT Historically Maintained Relatively Static Allocations
XFLT Historically Maintained Relatively Static Allocations 1,2 Asset Allocation 1,2 Future 3 12/31/2025 12/31/2024 12/31/2023 45.00% 48.12% 48.15% 48.47% Loans 30.00% 37.71% 39.13% 34.51% U.S. CLO Equity 5.00% 14.16% 12.72% 17.02% U.S. CLO Debt 10.00% - - - European CLO Equity 5.00% - - - European C
Slide 13: OCTIX Expanded Opportunity Set
OCTIX Expanded Opportunity Set Unaudited. Sources: XA Investments LLC; Paralel. XA INVESTMENTS LLC | XFLT & OCTIX Shareholder Proposals and Portfolio Manager Introduction June 30, 2026 | 13 If its proposal is approved, OCTIX will be managed dynamically to take advantage of opportunities in both the
Slide 14: U.S. and European CLO Market Issuance
U.S. and European CLO Market Issuance Sources: XA Investments LLC; Deutsche Bank. Notes: 1. Source: Deutsche Bank Update on CLOs – outlook for 2026, January 28, 2026. 2. Source: PitchBook, Deutsche Bank. $115bn $203bn $209bn $0bn $50bn $100bn $150bn $200bn $250bn 2023 2024 2025 U.S. CLO Issuance (US
Slide 15: European vs. U.S. CLO BB Spreads
European vs. U.S. CLO BB Spreads - 200 - 150 - 50 - 100 0 50 100 200 150 250 300 0 200 400 600 800 1,000 1,200 Difference (bps) Spread (bps) CLO BB Spreads: EUR 2.0 vs USD 3.0 (Secondary) Difference (EUR - USD) EUR 2.0 CLO BB Spread USD 3.0 CLO BB Spread Source: King Street. Note: Data as of 4/24/20
Slide 16: Your Vote Matters!
Your Vote Matters! Record Date: June 2, 2026 | Special Meetings: July 30, 2026 | Board recommends voting ” FOR ” the proposals H OW T O V OT E Y OU R S H AR E S Online Vote at the website listed on your proxy card and follow the on - screen instructions. By Phone Call the toll - free number on your
Slide 17: Contact Our Team with Questions
XAInvestments.com | (888) 903 - 3358 321 North Clark Street Suite 2430 Chicago, IL 60654 Kevin Davis XA Investments Managing Director, Head of Sales & Distribution Kimberly Flynn, CFA XA Investments President kdavis@xainvestments.com (832) 752 - 4792 kflynn@xainvestments.com (312) 374 - 6931 Join Us
Slide 18: XFLT Risk Considerations
Investment in XFLT (referred to in this section as the “Trust”) involves special risk considerations, which are summarized below. The Trust is designed as a long - term investment and not as a trading vehicle. The Trust is not intended to be a complete investment program. The Trust’s performance and
Slide 19: CLO Subordinated Note Risk
CLO Subordinated Note Risk. The Trust may invest in subordinated notes issued by a CLO, which are junior in priority of payment and are subject to certain payment restrictions generally set forth in an indenture governing the notes. In addition, they generally have only limited voting rights and gen
Slide 20: Leverage Risk
Leverage Risk. The Trust uses leverage to seek to enhance total return and income. The Trust may use leverage through (i) the issuance of senior securities representing indebtedness, including through borrowing from financial institutions or issuance of debt securities, including notes or commercial
Slide 21: Swaps Risk
Swaps Risk. The Trust may utilize swap agreements including, without limitation, interest rate, index and currency swap agreements. The use of swaps is a highly specialized activity that involves investment techniques and risks different from those associated with ordinary securities transactions. T
Slide 22: Equity Investments Risk; European CLO Risks
Equity Investments Risk. Incidental to the Trust’s investments in credit instruments, the Trust may acquire or hold equity securities, or warrants to purchase equity securities, of a borrower or issuer. Common equity securities prices fluctuate for a number of reasons, including changes in investors
Slide 23: Asset Backed Securities Risks (cont.)
Asset Backed Securities Risks (cont.). The Trust may invest in ABS issued by legal entities that are sponsored by banks, investment banks, other financial institutions or companies, asset management firms or funds and are specifically created for the purpose of issuing such ABS. Investors in ABS rec
Slide 24: Asset Backed Securities Risks (cont.)
Asset Backed Securities Risks (cont.). When market interest rates decline, more mortgages are refinanced and the securities are paid off earlier than expected. Prepayments may also occur on a scheduled basis or due to foreclosure. When market interest rates increase, the market values of MBS decline
Slide 25: Asset Backed Securities Risks (cont.)
Asset Backed Securities Risks (cont.). CMBS are subject to particular risks, such as those associated with lack of standardized terms, shorter maturities than residential mortgage loans and payment of all or substantially all of the principal only at maturity rather than regular amortization of prin
Slide 26: Asset Backed Securities Risks (cont.)
Asset Backed Securities Risks (cont . ) . Income from and values of RMBS also may be greatly affected by demographic trends, such as population shifts or changing tastes and values, or increasing vacancies or declining rents or property values resulting from legal, cultural, technological, global or
Slide 27: OCTIX Risk Considerations
Investment in the Fund involves risk considerations, which are summarized below. Investing involves risk, including the possible loss of your entire investment. There is no guarantee the Fund’s investment objective will be achieved. Investing in interval funds may be speculative, involve a high degr
Slide 28: European CLO Risks
European CLO Risks. European CLOs are not denominated in U.S. dollars and primarily hold loans to non - U.S. companies. Investing in securities of non - U.S. issuers may involve certain risks not typically associated with investing in securities of U.S. issuers. These risks include: (i) there may be
Slide 29: Asset Backed Securities Risks (cont.)
Asset Backed Securities Risks (cont.). During periods of declining interest rates, prepayment of borrowings underlying asset - backed securities can be expected to accelerate. Accordingly, the Fund’s ability to reinvest the returns of principal at comparable yields is subject to generally prevailing
Slide 30: OCTIX Asset Backed Securities Risks (cont.)
OCTIX Risk Considerations (cont.) Asset Backed Securities Risks (cont.). Additional risks relating to investments in MBS may arise principally because of the type of MBS in which the Fund invests, with such risks primarily associated with the particular assets collateralizing the MBS and the structu
Slide 31: Asset Backed Securities Risks (cont.)
Asset Backed Securities Risks (cont.). CMBS are subject to particular risks, such as those associated with lack of standardized terms, shorter maturities than residential mortgage loans and payment of all or substantially all of the principal only at maturity rather than regular amortization of prin
Slide 32: Asset Backed Securities Risks (cont.)
Asset Backed Securities Risks (cont.). Home mortgage loans are typically grouped together into pools by banks and other lending institutions, and interests in these pools are then sold to investors, allowing the bank or other lending institution to have more money available to loan to home buyers. R
Slide 33: Business Development Companies Risks (cont.)
Business Development Companies Risks (cont.). The Fund is subject to the conditions set forth in certain provisions of the 1940 Act and Securities and Exchange Commission regulations thereunder that limit the amount that the Fund and its affiliates, in the aggregate, can invest in the outstanding vo
Slide 34: SOFR Risk
SOFR Risk. The Secured Overnight Financing Rate (“SOFR”) is intended to be a broad measure of the cost of borrowing funds overnight in transactions that are collateralized by U.S. Treasury securities. SOFR is calculated based on transaction - level data collected from various sources. For each tradi
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