SCHEDULE: Sit Investment Associates Discloses 7.2% Stake in XAI Octagon Trust

Sit Investment Associates and its subsidiary have reported a 7.2% beneficial ownership stake in XAI Octagon Floating Rate & Alternative Income Trust as of December 31, 2025.

Summary

• Sit Investment Associates, Inc. and its subsidiary, Sit Fixed Income Advisors II, LLC, have filed a Schedule 13G, indicating their beneficial ownership in XAI Octagon Floating Rate & Alternative Income Trust.
• They collectively beneficially own 5,467,565 shares of XAI Octagon Floating Rate & Alternative Income Trust's Common Stock.
• This ownership represents 7.2% of the class, calculated based on 76,154,591 shares outstanding as of September 30, 2025.
• The reporting persons exercise shared voting and shared dispositive power over all 5,467,565 shares.
• The shares are held in client accounts for which Sit Investment Associates and Sit Fixed Income Advisors II, LLC provide investment management services, and they disclaim beneficial ownership of these securities.
• The filing certifies that the securities were acquired and are held in the ordinary course of business and not for the purpose of changing or influencing the control of the issuer.

Sentiment

Score: 6

Explanation: The filing is largely neutral as a routine disclosure of passive ownership. However, the establishment of a significant institutional stake by a reputable investment adviser can be viewed as a minor positive signal of confidence in the issuer's investment strategy and prospects.

Positives

• Increased institutional ownership by Sit Investment Associates, a registered investment adviser, may signal confidence in XAI Octagon Floating Rate & Alternative Income Trust's investment strategy.
• The stake is held in the ordinary course of business, indicating a passive investment strategy rather than an activist intent, which can be viewed as a stable form of institutional support.

Future Outlook

The filing does not contain specific forward-looking statements or guidance from the issuer or the reporting persons regarding the issuer's future performance or strategy, beyond the intent to hold shares in the ordinary course of business.

Industry Context

This Schedule 13G filing reflects a routine disclosure of significant passive institutional ownership. For closed-end funds like XAI Octagon Floating Rate & Alternative Income Trust, institutional holdings can provide a degree of stability and liquidity, and a notable stake by an investment adviser like Sit Investment Associates suggests a professional assessment of the fund's investment strategy and potential.

Stakeholder Impact

• Shareholders: The disclosure of a significant institutional stake by Sit Investment Associates may be viewed positively, potentially indicating increased confidence in the fund's value proposition and potentially contributing to market stability.

Key Dates

Keywords

XAI Octagon Floating Rate & Alternative Income Trust, Sit Investment Associates, Sit Fixed Income Advisors II, Schedule 13G, Beneficial Ownership, Institutional Ownership, Common Stock, Investment Adviser, Floating Rate, Alternative Income