Madison Covered Call & Equity Strategy Fund (the “Fund”) has
declared its regular quarterly distribution of $0.18 per share on
the Fund’s common shares (NYSE: MCN), payable on December 31, 2024,
to shareholders of record as of December 17, 2024, as noted below.
The amount of the distribution represents no change from the
previous quarter’s distribution amount of $0.18 per share.
The following dates apply to the declaration:
Ex-Dividend Date
December 17, 2024
Record Date
December 17, 2024
Payable Date
December 31, 2024
Amount
$0.18 per share
Change from Previous Quarter
No change
Common share distributions may be paid from net investment
income (regular interest and dividends), capital gains and/or a
return of capital. The specific tax characteristics of the
distributions will be reported to the Fund’s common shareholders on
Form 1099 after the end of the 2024 calendar year. Shareholders
should not assume that the source of a distribution from the Fund
is net income or profit. For further information regarding the
Fund’s distributions, please visit
www.xainvestments.com.
The Fund’s net investment income and capital gain can vary
significantly over time; however, the Fund seeks to maintain more
stable common share quarterly distributions over time. The Fund’s
final taxable income for the current fiscal year will not be known
until the Fund’s tax returns are filed.
As a registered investment company, the Fund is subject to a 4%
excise tax that is imposed if the Fund does not distribute to
common shareholders by the end of any calendar year at least the
sum of (i) 98% of its ordinary income (not taking into account any
capital gain or loss) for the calendar year and (ii) 98.2% of its
capital gain in excess of its capital loss (adjusted for certain
ordinary losses) for a one-year period generally ending on December
31 of the calendar year (unless an election is made to use the
Fund’s fiscal year). In certain circumstances, the Fund may elect
to retain income or capital gain to the extent that the Board of
Trustees, in consultation with Fund management, determines it to be
in the interest of shareholders to do so.
The common share distributions paid by the Fund for any
particular period may be more than the amount of net investment
income from that period. As a result, all or a portion of a
distribution may be a return of capital, which is in effect a
partial return of the amount a common shareholder invested in the
Fund, up to the amount of the common shareholder’s tax basis in
their common shares, which would reduce such tax basis. Although a
return of capital may not be taxable, it will generally increase
the common shareholder’s potential gain, or reduce the common
shareholder’s potential loss, on any subsequent sale or other
disposition of common shares.
Future common share distributions will be made if and when
declared by the Fund’s Board of Trustees, based on a consideration
of number of factors, including the Fund’s net investment income,
financial performance and available cash. There can be no assurance
that the amount or timing of common share distributions in the
future will be equal or similar to that described herein or that
the Board of Trustees will not decide to suspend or discontinue the
payment of common share distributions in the future.
The Fund’s objective is to achieve a high level of current
income and current capital gains, with long-term capital
appreciation as a secondary objective. The Fund intends to pursue
its objective by investing in a portfolio of common stocks and
utilizing an option strategy, primarily by writing (selling)
covered call options on a substantial portion of the common stocks
in the portfolio in order to generate current income and gains from
option writing premiums and, to a lesser extent, from dividends.
Market action can impact dividend issuance as the Fund’s total
assets affect the Fund’s future dividend prospects. The Fund
provides additional information on its website at
www.xainvestments.com.
About XA Investments
XA Investments LLC (“XAI”) serves as the Fund’s investment
adviser. XAI is a Chicago-based firm founded by XMS Capital
Partners in 2016. XAI serves as the investment adviser for two
listed closed-end funds and an interval closed-end fund. The listed
closed-end funds, the XAI Octagon Floating Rate & Alternative
Income Trust (NYSE: XFLT) and Madison Covered Call & Equity
Strategy Fund (NYSE: MCN) both trade on the New York Stock
Exchange. The interval closed-end fund, Octagon XAI CLO Income Fund
(OCTIX), is newly launched and has been made widely available to
investors.
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 development and market research, sales, marketing, fund
management and administration.
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 XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global,
independent, financial services firm providing M&A, corporate
advisory and asset management services to clients. It has offices
in Chicago, Boston and London. For more information, please visit
www.xmscapital.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,
please visit the Fund’s webpage at
www.xainvestments.com.
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.
NOT FDIC INSURED
NO BANK GUARANTEE
MAY LOSE VALUE
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version on businesswire.com: https://www.businesswire.com/news/home/20241202759398/en/
Kimberly Flynn, President XA Investments LLC Phone: 888-903-3358
Email: KFlynn@XAInvestments.com www.xainvestments.com
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