XFLT’s board is making the case that shareholders stand to benefit from the fund’s relationship with King Street as sub-adviser, framing the issue as a key point in the ongoing proxy contest. According to the board, its support is unanimous and is based on what it sees as meaningful strategic advantages for the fund.
The board’s argument centers on King Street’s collateralized loan obligation, or CLO, platform. It says that platform gives XFLT access to specialized experience in an area that is important to the fund’s investment approach. In the board’s view, that expertise could help strengthen the fund’s positioning and support shareholder interests over time.
Another part of the board’s message is King Street’s long operating history. It points to a 30-year track record, along with what it describes as significant depth of talent, as reasons shareholders should view the sub-adviser favorably. The board is also highlighting broader investment capabilities, suggesting that a wider range of resources and experience could improve the fund’s flexibility.
Taken together, the board is presenting King Street as more than a routine advisory change. In the context of the XFLT proxy contest, it is arguing that the sub-adviser brings a combination of CLO experience, established performance history, investment personnel and expanded capabilities that it believes will be beneficial for XFLT shareholders.
