XAI Floating Rate & Alternative Income Trust Approves New Sub‑Advisory Agreement

What Happened

• XAI Floating Rate & Alternative Income Trust (NYSE: XFLT) filed an 8‑K on August 10, 2026 announcing that shareholders approved a new investment sub‑advisory agreement among the Trust, XA Investments, LLC (the Adviser) and Rockford Tower Asset Management, L.L.C. (the King Street Sub‑Adviser).
• A special meeting of shareholders was convened July 30, 2026, adjourned to August 6, 2026 to solicit additional proxies, and reconvened August 6, 2026. After certification of the final vote, the parties executed the New Sub‑Advisory Agreement on August 10, 2026. The terms are substantially the same as the interim agreement dated July 30, 2026, except for the agreement’s term.

Key Details

• Effective date / filing: Form 8‑K filed August 10, 2026.
• Initial term: the New Sub‑Advisory Agreement continues for an initial two‑year term.
• Renewal: thereafter it continues year‑to‑year only if (i) approved annually by the Board or holders of a majority of outstanding voting securities and (ii) approved annually by a majority of trustees who are not “interested persons,” by in‑person vote at a meeting called for that purpose.
• Termination: either the Trust or the Adviser may terminate on 60 days’ written notice (no penalty); the King Street Sub‑Adviser may also terminate on 60 days’ written notice. Immediate termination occurs upon assignment (as defined in the 1940 Act) or upon termination of the Trust’s investment advisory agreement with the Adviser.
• The full agreement is filed as Exhibit 10.1 to the 8‑K.

Why It Matters

• This filing confirms formal shareholder and trustee approval and the execution of a multi‑year sub‑advisory arrangement that governs who manages portions of the Trust’s assets, providing a clear framework and continuity for the fund’s investment management for at least the next two years.
• The renewal and termination terms give both the Trust and the sub‑adviser flexibility while preserving governance safeguards (shareholder/independent trustee approvals). Investors should review Exhibit 10.1 in the 8‑K for the full contractual terms and monitor any future changes to advisory arrangements.