XAI CLO & Income Opportunities Fund has taken a significant step by filing a preliminary proxy statement to seek shareholder approval for a new sub-advisory agreement. This proposal aims to enhance shareholder benefits through reduced fees and improved management, marking a strategic shift in the fund's governance.

The fund is managed by XA Investments LLC and has been under the interim management of King Street Asset Management since July 30, 2026. The upcoming special meeting of shareholders is scheduled for December 10, 2026, where this proposal will be voted on.

Background

XAI CLO & Income Opportunities Fund, incorporated in Delaware, operates as a closed-end management investment company. The fund's primary focus is on providing income opportunities through collateralized loan obligations (CLOs) and other credit investments. The recent filing is part of a series of documents aimed at improving the fund's governance and operational efficiency.

What the Filing Says

The preliminary proxy statement outlines a proposal for a new sub-advisory agreement with King Street Asset Management. The statement highlights that if approved, the fund's advisory fee will be permanently reduced from 1.50% to 1.30% of the fund's average daily managed assets. Additionally, for the first 12 months following approval, the advisory fee will further decrease to 1.00% due to a contractual waiver.

Impact

This proposal could significantly benefit shareholders by lowering costs associated with fund management. The King Street Sub-Adviser is expected to leverage its extensive experience and investment capabilities to enhance fund performance, which may positively influence investor sentiment and retention.

What's Next

The next step involves the special meeting of shareholders on December 10, 2026, where they will vote on the proposed sub-advisory agreement. The outcome of this vote will determine the future management structure of the fund and its fee structure.