Madison Covered Call Fund Announces Regular $0.18 Distribution

Madison Covered Call & Equity Strategy Fund Announces Quarterly Distribution

CHICAGO - The Madison Covered Call & Equity Strategy Fund, commonly known as the Fund, has officially announced its quarterly distribution of $0.18 per share on its common shares (NYSE: MCN). This distribution is set to be paid on December 31 to all shareholders who are on record as of December 17. Notably, this distribution amount remains unchanged from the previous quarter.

Key Distribution Dates for Shareholders

The crucial dates for the upcoming distribution are as follows:

Ex-Dividend Date

Shareholders should note that the ex-dividend date will be December 17, 2024. This is the date by which one must own shares to be eligible for the distribution.

Record Date

The record date is also set for December 17, 2024. Shareholders recorded by this date will receive the quarterly distribution.

Payable Date

The distribution will be payable to shareholders on December 31, 2024.

Distribution Amount

The amount of $0.18 per share is a direct reflection of the Fund's financial strategy, delivering consistent income to shareholders.

Understanding the Fund’s Distribution Sources

It is essential for shareholders to recognize that the common share distributions could originate from various sources, including net investment income, capital gains, and potentially a return of capital. Each of these factors will be outlined in the tax documents provided to shareholders after the end of the calendar year.

Tax Considerations for Shareholders

The specific tax characteristics of the distributions will be communicated to shareholders on Form 1099. Therefore, shareholders should not automatically assume that their distributions stem purely from net income or profit, as it may involve different components.

Stability of Distributions

While the Fund endeavors to maintain stable quarterly distributions over time, fluctuations in net investment income and capital gains can occur. This variability is a natural aspect of investment management and should be anticipated by shareholders.

Regulatory Compliance and Excise Taxes

As a registered investment company, the Fund is obligated to comply with certain tax regulations. For instance, a 4% excise tax may come into play if the Fund does not distribute at least specified thresholds of its ordinary income and capital gains by the end of the year.

Future Distributions and Fund Objectives

The Board of Trustees is responsible for determining the timing and amount of future distributions, which could hinge on several factors including the Fund’s financial performance and available cash reserves. As such, it's crucial for investors to approach future distributions with a mind open to change.

Investment Strategies for Generating Income

The Fund’s overarching goal is to achieve a substantial level of current income and capital gains, with a focus on long-term appreciation. In pursuit of this objective, it strategically invests in a portfolio of common stocks while employing an options strategy, particularly by writing covered call options. This approach aims to boost current income and capital gains through option premiums.

Insights on XA Investments

XA Investments LLC serves as the investment adviser to the Fund, leveraging extensive expertise in fund management and strategy development. Offering a range of investment advisory services, XA Investments stands out in the industry, managing both listed closed-end funds and newly launched interval funds.

About Madison Investments

Founded in 1974, Madison Investments is a highly regarded firm based in Madison, WI, managing approximately $28 billion in assets as of late 2024. The firm is renowned for its various investment strategies encompassing domestic fixed income, international equity, and covered call options.

Frequently Asked Questions

What is the distribution amount declared by the Madison Fund?

The Madison Covered Call & Equity Strategy Fund has declared a distribution of $0.18 per share.

When will the distribution be paid to shareholders?

The distribution will be payable on December 31, 2024, to shareholders recorded by December 17, 2024.

What sources may the distribution come from?

The distribution may be paid from net investment income, capital gains, or a return of capital.

Who manages the Madison Covered Call Fund?

XA Investments LLC serves as the investment adviser for the Madison Covered Call & Equity Strategy Fund.

What is the purpose of the Fund's investment strategy?

The Fund aims to achieve a high level of current income and capital gains while also focusing on long-term capital appreciation.

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