Madison Covered Call Fund Embraces New Advisory Team
In a significant development, shareholders of the Madison Covered Call & Equity Strategy Fund (NYSE: MCN) have voted to approve XA Investments, LLC as their new investment adviser and Madison Asset Management, LLC as the fund's sub-adviser. This decision was made during a special shareholders' meeting, marking a pivotal transition for the fund.
Key Proposals Gaining Approval
During the meeting, multiple proposals received the green light from shareholders. A newly constituted slate of trustees will take charge of overseeing the fund's operations. Additionally, a new investment advisory agreement will appoint XA Investments as the main investment manager, while Madison will serve as the sub-adviser for daily portfolio management tasks. This strategic change aims to optimize the fund's performance while maintaining its investment philosophy.
The Role of XA Investments and Madison
XAI will lead the overall management and investment strategies for the fund, ensuring a well-structured approach to asset allocation and investment opportunities. Meanwhile, Madison will handle the day-to-day operations of the portfolio, ensuring that the management fees and investment objectives remain unchanged, allowing for a seamless transition for shareholders.
Fresh Branding and Enhanced Offering
As part of this transition, the fund will be rebranded from the Madison Covered Call & Equity Strategy Fund to the XAI Madison Equity Premium Income Fund. This new identity will come into effect in December and will continue to trade under the ticker symbol MCN on the New York Stock Exchange.
Joining the XAI Funds Platform
This rebranding coincides with the fund joining the XAI Funds platform, which now will consist of three closed-end funds. Alongside the XAI Madison Equity Premium Income Fund, investors will have access to the XAI Octagon Floating Rate & Alternative Income Trust (NYSE: XFLT) and the Octagon XAI CLO Income Fund (OCTIX). Such diversification reinforces XA Investments’ commitment to enhancing product offerings aimed at improving shareholder outcomes.
Manager Insights on Future Directions
Ray Di Bernardo, the portfolio manager, expressed optimism about this new relationship, stating that after managing MCN for two decades, he looks forward to delivering enhanced portfolio performance and innovative strategies as a part of XA Investments' vision.
Kimberly Flynn, the President of XA Investments, also emphasized the advantages this partnership will provide, which include operational efficiencies, continuity in portfolio management, improved investor relations, and focused efforts on enhancing trading in secondary markets.
About Madison Covered Call & Equity Strategy Fund
Madison Covered Call & Equity Strategy Fund has established itself as an actively managed closed-end fund that invests primarily in a diversified portfolio of U.S. equity securities. Implementing a covered call strategy, the fund aims to provide lower volatility along with robust cash flows for its shareholders.
About XA Investments
Founded in 2016, XA Investments is an investment advisory firm that strives to offer superior financial products to investors. With experience in managing both closed-end and interval funds, XA’s strategic focus is on delivering advantageous investment opportunities with a commitment to achieving strong cash flows for clients.
About Madison Investments
Madison Investments, established in 1974, is a respected investment management firm with approximately $28 billion in assets under management as of September 30, 2024. Their suite of services includes a wide array of investment strategies catering to individual and institutional clients.
Frequently Asked Questions
What is the new name of the Madison Covered Call Fund?
The fund will be rebranded as the XAI Madison Equity Premium Income Fund.
When will the rebranding become effective?
The rebranding will take effect in December 2024.
What are the primary benefits for shareholders?
Shareholders can expect increased operational efficiencies, continuity in investment strategies, enhanced investor relations, and improved market trading conditions.
Who will manage the fund's day-to-day operations?
Madison Asset Management will be responsible for the fund's day-to-day portfolio management.
How long has the Madison Covered Call Fund been in operation?
The fund has been in operation for 20 years, celebrating its 20th anniversary on the New York Stock Exchange.
