Dividend-News

XFLT: Dynamic Approach To An 11.33% Yield

Published Tue, 22 Dec 2020 11:32:37 -0500 on Seeking Alpha

Seeking AlphaClosed End FundsXFLT: Dynamic Approach To An 11.33% YieldDec. 22, 2020 11:32 AM ET|| About: XAI Octagon Floating Rate & Alternative Income Term Trust (XFLT), Includes: OXLC, OXLCM, OXLCO, OXLCPby: Nick AckermanNick Ackerman CEF/ETF Income LaboratoryCEF/ETF income and arbitrage strategies, 8%+ portfolio yieldsSummaryXFLT recently boosted its distribution back to pre-Covid crash levels.
With this change, they also implemented a investment policy change to favor holding more CLOs.
The hybrid approach worked relatively well going through the volatile 2020.
Written by Nick Ackerman, co-produced by Stanford Chemist
XAI Octagon Floating Rate & Alternative Income Term Trust (XFLT) has recently released a report for the period ending September 30th, 2020. Through this volatile year, the hybrid approach to XFLT meant that it has navigated the market relatively better than some other CLO only funds. In fact, they have returned to their pre-COVID distribution level with the latest boost and shares are positive this year. Positive on both a share price and NAV total return basis.
We first discussed the raise and mandate change in Stanford Chemist's Weekly Closed-End Fund Roundup in October. Stanford Chemist also had an exclusive interview with Kimberly Flynn earlier this year. This is exclusive to members of the CEF/ETF Income Laboratory only. She is XA Investments Managing Director. If you haven't done so already, please do read through this enlightening interview full of invaluable insights.
XFLT's objective is to "seek attractive total return with an emphasis on income generation across multiple stages of the credit cycle."
They will do this through "a dynamically managed portfolio of floating-rate credit instruments and other structured credit investments within the private markets. Under normal market conditions, the Trust will invest at least 80% if managed assets in senior secured loans, CLO debt and CLO equity."
While they were and... Read more