XAI Floating Rate & Alternative Income Trust (XFLT) shareholder Octagon Credit Investors urged fellow shareholders to vote against the company's proposed new investment sub-advisory agreement at a July 30 special meeting, according to a Monday presentation filed with the SEC.

Under the new agreement, XAI plans to appoint Rockford Tower Asset Management, a newly formed wholly owned subsidiary of King Street Capital Management, as its new investment sub-adviser, replacing Octagon.

In response, Octagon outlined an alternative plan to reduce fees charged to shareholders, simplify the fund's management structure and focus on reducing the share price discount to NAV, it said.

XAI Floating Rate & Alternative Income Trust did not immediately respond to MT Newswires' request for comment.