During a special meeting on October 15, 2024 (the “Special
Meeting”), shareholders of the Madison Covered Call & Equity
Strategy Fund (NYSE: MCN) (“MCN” or the “Fund”) approved multiple
important proposals:
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- A newly constituted slate of trustees to serve on the Fund’s
board of trustees;
- A new investment advisory agreement between the Fund and XA
Investments, LLC (“XAI”) appointing XAI as the Fund’s investment
advisor (the “New Advisory Agreement”);
- A new investment sub-advisory agreement among the Fund, XAI and
Madison Asset Management, LLC (“Madison”) appointing Madison as the
Fund’s investment sub-advisor (the “New Sub-Advisory
Agreement”).
The New Advisory and Sub-Advisory
Agreements
Under the New Advisory Agreement, XAI will be responsible for
the Fund’s overall management and investment strategy. Under the
New Sub-Advisory Agreement, Madison will maintain responsibility
for the Fund’s day-to-day portfolio management. The New Advisory
Agreement and New Sub-Advisory Agreement will both be entered into
on or around December 2, 2024. Importantly, the New Advisory
Agreement and New Sub-Advisory Agreement will not result in any
change in the day-to-day portfolio management of the Fund, the
Fund’s management fees, or in the Fund’s investment objectives and
principal investment policies.
Fund Rebrand and XAI Funds
Platform
In connection with the New Advisory Agreement and New
Sub-Advisory Agreement, the Fund will change its name from Madison
Covered Call & Equity Strategy Fund to XAI Madison Equity
Premium Income Fund. The Fund will continue to trade on the New
York Stock Exchange under ticker symbol MCN and will adopt its new
name in December 2024.
The Fund will join the XAI Funds platform, and will expand the
number of closed-end funds currently on the XAI Funds platform to
three: the Fund, the XAI Octagon Floating Rate & Alternative
Income Trust (NYSE: XFLT), and the Octagon XAI CLO Income Fund
(OCTIX). XAI continues to seek additional opportunities consistent
with its mission of providing better products with better portfolio
outcomes for investors.
Portfolio manager Ray Di Bernardo said, “We’ve been managing MCN
for 20 years, seeking to deliver lower volatility and strong
cashflows for shareholders. We are excited for the partnership with
XA Investments and what it represents for the next phase of fund
growth.”
“We are happy to welcome MCN and its shareholders to the XAI
Funds platform,” said Kimberly Flynn, President of XAI. “XAI stands
ready to serve the MCN shareholders and will seek to deliver four
primary benefits to the shareholders: (i) scale efficiencies
through creative and conventional growth in assets; (ii) continuity
of the existing portfolio management team and principal investment
strategy; (iii) enhanced investor relations; and (iv) dogged
pursuit of improved secondary market trading.”
About Madison Covered Call & Equity Strategy Fund
Madison Covered Call & Equity Strategy Fund (NYSE: MCN) is
an actively-managed closed-end fund that invests in a diversified
portfolio of U.S. equity securities and is augmented by a covered
call strategy that seeks to reduce volatility and generate
attractive cash flows for shareholders. The Fund trades under
ticker symbol MCN and celebrated 20 years of being listed on the
New York Stock Exchange in July 2024.
About XA Investments
XA Investments LLC is a Chicago-based investment advisory firm
founded by XMS Capital Partners in 2016. XAI serves as the
investment adviser for both a listed closed-end fund and an
interval closed-end fund, respectively the XAI Octagon Floating
Rate & Alternative Income Trust (NYSE: XFLT) and the Octagon
XAI CLO Income Fund (OCTIX).
In addition to investment advisory services, the firm also
provides investment fund structuring and consulting services
focused on registered closed-end funds to meet institutional client
needs. XAI offers custom product build and consulting services,
including product development and market research, sales, marketing
and fund management.
XAI believes that the investing public can benefit from new
vehicles to access a broad range of alternative investment
strategies and managers. XAI provides individual investors with
access to institutional-caliber alternative managers. For more
information, please visit www.xainvestments.com.
About Madison Investments
Madison Investments is an independent investment management firm
based in Madison, WI. The firm was founded in 1974, has
approximately $28 billion in assets under management as of
September 30, 2024, and is recognized as one of the nation’s top
investment firms. Madison offers domestic fixed income, U.S. and
international equity, covered call, multi-asset, insurance and
credit union investment management strategies. For more
information, please visit www.madisoninvestments.com.
Madison and/or Madison Investments is the unifying tradename of
Madison Investment Holdings, Inc., Madison Asset Management, LLC,
and Madison Investment Advisors, LLC. Madison Funds are distributed
by MFD Distributor, LLC. Madison is registered as an investment
adviser with the U.S. Securities and Exchange Commission. MFD
Distributor, LLC is registered with the U.S. Securities and
Exchange Commission as a broker-dealer and is a member firm of the
Financial Industry Regulatory Authority (www.finra.org).
* * *
XAI does not provide tax advice; please consult a professional
tax advisor regarding your specific tax situation. Income may be
subject to state and local taxes, as well as the federal
alternative minimum tax.
Investors should consider the investment objectives and
policies, risk considerations, charges and expenses of the Fund
carefully before investing. For more information on the Fund,
including shareholder reports, proxy and information statements and
other information, please visit the SEC’s website at
www.sec.gov.
This press release shall not constitute an offer to sell or a
solicitation to buy, nor shall there be any sale of these
securities in any state or jurisdiction in which such offer or
solicitation or sale would be unlawful prior to registration or
qualification under the laws of such state or jurisdiction.
This press release contains certain statements that may include
"forward-looking statements." Forward-looking statements can be
identified by the words "may," "will," "intend," "expect,"
"estimate," "continue," "plan," "anticipate," and similar terms and
the negatives of such terms. By their nature, all forward-looking
statements involve risks and uncertainties, and actual results
could differ materially from those contemplated by the
forward-looking statements. Many factors that could materially
affect the Fund’s actual results are the performance of the
portfolio of securities held by the Fund, the conditions in the
U.S. and international financial and other markets, the price at
which the Fund’s shares trade in the public markets and other
factors discussed in the Fund’s annual and semi-annual reports
filed with the SEC.
Although the Fund believes that the expectations expressed in
such forward-looking statements are reasonable, actual results
could differ materially from those expressed or implied in such
forward-looking statements. The Fund’s future financial condition
and results of operations, as well as any forward-looking
statements, are subject to change and are subject to inherent risks
and uncertainties. You are cautioned not to place undue reliance on
these forward-looking statements, which are made as of the date of
this press release. Except for the Fund’s ongoing obligations under
the federal securities laws, the Fund does not intend, and the Fund
undertakes no obligation, to update any forward-looking
statement.
* * *
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version on businesswire.com: https://www.businesswire.com/news/home/20241015803256/en/
Kimberly Flynn, President XA Investments LLC Phone: 888-903-3358
Email: KFlynn@xainvestments.com www.xainvestments.com
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