XAI Floating Rate & Alternative Income Trust · NYSE:XFLT
XAI Floating Rate & Alternative Income Trust — Proxy Contest (July 2026)
29 slides from XAI Floating Rate & Alternative Income Trust's proxy contest presentation, Jul 13, 2026
Slide 1: XAI Floating Rate & Alternative Income Trust (XFLT) Investor Presentation
XAI Floating Rate & Alternative Income Trust (XFLT) Investor Presentation July 13, 2026
Slide 2: Executive Summary
Executive Summary XA INVESTMENTS LLC XFLT Investor Presentation 2 Source: XA Investments LLC. Addressing Performance and Shareholder Value Concerns • Through a comprehensive diligence process in consultation with XA Investments LLC (“XAI”, “XA Investments”, or the “Adviser”), the Board of Trustees o
Slide 3: Board Oversight of Advisers/Sub-Advisers under the Investment Company Act of 1940
Board Oversight of Advisers/Sub - Advisers under the Investment Company Act of 1940 x Contracts with advisers and sub - advisers must be freely terminable by a fund’s board without penalty x Contracts with advisers and sub - advisers continue year - over - year only if specifically approved by the f
Slide 4: The Board's Decision to Address XFLT's Discount and Enhance Performance Potential
The Board’s Decision to Address XFLT’s Discount and Enhance Performance Potential
Slide 5: Details of the Special Meeting
Details of the Special Meeting XAI Floating Rate & Alternative Income Trust (NYSE: XFLT) XA Investments LLC Investment Adviser June 2, 2026 Record Date July 30, 2026 Meeting Date To approve a new investment sub - advisory agreement among the Fund, XAI, and the King Street Sub - Adviser Proposal The
Slide 6: Overview
Overview Seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle Investment Objective XA Investments LLC Responsible for overseeing the Fund’s investment strategy and implementation, inclusive of governance, leverage management, fund administrati
Slide 7: Why Shareholders Should Vote FOR the King Street Sub-Adviser
Why Shareholders Should Vote FOR the King Street Sub - Adviser The Board unanimously recommends that shareholders vote “FOR” approval of the new investment sub - advisory agreement. Focus on Future Shareholder Outcomes • The Board’s decision was based on a forward - looking assessment of what is mos
Slide 8: Highly Qualified Board with Deep Investment and Governance Experience
Highly Qualified Board with Deep Investment and Governance Experience • Strong Independent Oversight: XFLT’s Board consists of six trustees, five of whom are independent, including an independent Board Chair. • Deep Investment, Credit, Governance and Public Fund Expertise: Collectively, Board member
Slide 9: Octagon's Performance Challenges
Octagon’s Performance Challenges The Board’s decision to terminate Octagon was rooted in objective performance data and portfolio trends. Maintaining the status quo was not in the best interest of shareholders. 3. Represents latest 18 months of price history as of 3/31/2026. Performance data quoted
Slide 10: Consistent Underperformance and NAV Erosion
Source: XA Investments LLC; Paralel. Notes: Period returns shown net of fees and expenses. Performance and NAVs shown derive from the Fund’s books and records. 1. Represents annualized total return from XFLT’s inception date of 9/26/2017 - 3/31/2026. Consistent Underperformance and NAV Erosion The F
Slide 11: XFLT Premium / Discount History
- 40.00% - 30.00% - 20.00% - 10.00% 0.00% 10.00% 20.00% 30.00% The Fund’s widening market discount over the past two years underscored the need for decisive action to protect shareholder interests. XFLT Premium / Discount Levels (9/26/2017 to 3/31/2026) Premium /Discount 1 ITD Average Premium Source
Slide 12: Material Leadership Turnover at Octagon
Material Leadership Turnover at Octagon Substantial changes to Octagon’s senior leadership and investment team called in to question the firm’s organizational stability and focus. Source: XA Investments LLC. XA INVESTMENTS LLC XFLT Investor Presentation 12 Timing and Description Action Sept 2024: Gr
Slide 13: Board and XAI Oversight Timeline
August 2025 XAI shifted Octagon oversight calls from quarterly to monthly in order to monitor portfolio management and performance matters more closely August 12, 2025 Qtly Board Meeting Board and XAI reviewed XFLT underperformance. Continued to review NAV declines in XFLT May 27, 2025 Qtly Board Me
Slide 14: King Street Expertise
XAlInvestments King Street Expertise
Slide 15: King Street Overview
King Street Overview Global alternative asset manager focused on public and private markets, combining rigorous research, tactical trading, and flexible deployment to create differentiated investment solutions. 1. As of March 31, 2026. XA INVESTMENTS LLC XFLT Investor Presentation 15 BY THE NUMBERS
Slide 16: King Street History
Source: King Street. King Street History King Street's investment philosophy has been consistently applied since its inception in 1995. The growth of the Firm has been deliberate and methodical to meet investor objectives. Firm Timeline 1995 – 2000 2001 – 2005 2006 – 2010 2011 – 2015 2016 – 2020 202
Slide 17: Key Criteria Assessed
Key Criteria Assessed 1. CLO Investment Capabilities (U.S. and non - U.S.) Depth across the CLO capital structure, including debt and equity, across U.S. and European markets 2. Credible Brand, Scale and Ability to Source Transactions Capacity and market presence to compete for high - quality CLO eq
Slide 18: Young Choi, Portfolio Manager
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 Investment Committ
Slide 19: King Street's Edge
As of May 1, 2026. King Street’s investment strategy is subject to significant risks and there is no guarantee that the Fund will achieve its investment objective or avoid losses, or that historical trends will continue. There is no guarantee that any downside protection will be effective. 1. For th
Slide 20: Rockford Tower CLO Platform
Sources: XA Investments LLC; King Street; Awards Shortlist Creditflux CLO Symposium 2026; Awards Shortlist Creditflux CLO Symposium 2024; CLOs – Creditflux.com. 1. Past performance is not a guarantee of future results. 2. As of December 31, 2025 and includes the current collateral principal amount o
Slide 21: King Street Sub-Adviser Offers Expanded Investment Opportunity Set
King Street Sub - Adviser Offers Expanded Investment Opportunity Set • Broadly Syndicated Loans • U.S. CLO Equity • U.S. CLO Debt • European CLO Equity • European CLO Debt • Asset - Backed Securities • CLO Warehouse Opportunities • Broadly Syndicated Loans • U.S. CLO Equity • U.S. CLO Debt Source: X
Slide 22: XFLT Maintained Relatively Static Allocations in Recent Years
XFLT Maintained Relatively Static Allocations in Recent Years 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% - - - Europea
Slide 23: Key Misstatements and Omissions in Octagon's Proxy Statement
Key Misstatements and Omissions in Octagon’s Proxy Statement
Slide 24: Octagon CLOs Default – Recent Report by S&P Global Ratings
Octagon CLOs Default – Recent Report by S&P Global Ratings Octagon’s “investment prowess” referenced in their proxy statement omits its own recent CLO defaults, which is important context for shareholders. XA INVESTMENTS LLC XFLT Investor Presentation 24 S&P Global Ratings Research Report (June 16,
Slide 25: XFLT Historical Morningstar Ratings
0.00 1.00 2.00 3.00 4.00 5.00 6.00 XFLT Historical Morningstar Ratings 9/30/2020: Eligible for Morningstar Rating 5/31/2026: 2 - Star Morningstar Rating Only 5 months as 5 - Star rating XFLT Has Been 2 - Star Morningstar Rated Since January 2026 Ratings Methodology • Morningstar Overall Ratings are
Slide 26: Octagon's False Claims
Octagon’s False Claims Octagon’s tenure and ownership demonstrate alignment with shareholders King Street/Rockford Tower is not a suitable specialist credit replacement Octagon delivered strong management and investment results Facts Tenure is not performance. Octagon’s history with XFLT does not ov
Slide 27: Octagon's False Claims
Octagon’s False Claims Octagon claims to have grown increasingly concerned that key decisions about the Fund were being made by a Board that was not fully informed, to the detriment of shareholders Octagon claims it has a “better path forward” because it offered to take over the Fund as investment a
Slide 28: The Board Acted Deliberately and in the Best Interests of Shareholders
The Board Acted Deliberately and in the Best Interests of Shareholders Key Takeaways • The Board conducted a comprehensive review of the Fund’s performance, sub - adviser relationship, organizational developments, and strategic alternatives before reaching its decision. • The Fund experienced prolon
Slide 29: Important Information and Disclaimer
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
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