Covered call exchange-traded closed-end funds are expected to see accelerated growth
MADISON, Wis., July 11, 2024 (GLOBE NEWSWIRE) — Madison Investments, a privately held, independent investment management firm known for its expertise in actively managed, high quality portfolios, today announced a strategic alliance with XA Investments (XAI), an alternative investment management and consulting firm. The agreement provides that XAI will serve as investment advisor to Madison Covered Call and Equity Strategy Fund (NYSE: MCN), a publicly traded, $147 million closed-end fund. Madison Investments will retain portfolio management responsibilities as a sub-adviser to MCN.
Partnering with XAI will enable Madison Investments to focus on its investment management and strategic growth priorities, including an investment lineup that includes separately managed accounts, open-end mutual funds and active ETFs, while ensuring the best interests of MCN shareholders.
“We are pleased to partner with XA Investments, who shares our commitment to providing institutional-grade investment strategies to all investors,” said Stephen Karl, Chairman of Madison’s Executive Committee. “We look forward to building a long-term partnership with XAI and working with them to provide additional investment strategies and products to our investors. We believe that combining Madison Investments’ portfolio management capabilities with XAI’s product design capabilities, particularly in publicly traded closed-end and interval funds, will be a great benefit to our clients.”
“We are pleased to welcome Madison Investments to the XAI closed-end fund platform,” said Kimberly Flynn, President of XAI. “We believe that through its role as investment advisor to MCN, XAI can accelerate the growth of the Madison Covered Call and Equity Strategy Fund. Our extensive experience in the closed-end market allows us to share and implement best practices to improve MCN’s secondary market transactions.”
Introduced in 2004, MCN was the first covered call fund offered to investors in a closed-end structure, and a 20-year track record attests to the team’s experience navigating market cycles.
The appointment of XAI as investment advisor to MCN, and the appointment of Madison Asset Management as sub-advisor to MCN, are subject to shareholder approval. MCN’s special meeting of shareholders is scheduled for October 15, 2024, at which shareholders will be invited to consider and vote on a new investment advisory agreement between MCN and XAI, a new sub-advisory agreement between MCN, XAI and Madison, and new trustee nominees. MCN shareholders will receive a proxy statement containing additional information about the special meeting and each of these proposals. MCN’s board of trustees approved these proposals at a meeting held on July 10, 2024. Berkshire Global Advisors acted as exclusive financial advisor to Madison Investments.
About Madison Investments
Madison Investments is an independent investment management firm based in Madison, Wisconsin. The firm was founded in 1974 and is recognized as one of the nation’s top investment firms with approximately $26 billion in assets under management as of March 31, 2024. Madison Investments offers domestic fixed income, U.S. and international equity, covered call, multi-asset, insurance and credit union investment management strategies.
About XA Investments
XA Investments LLC (“XAI”) is a Chicago-based firm founded in 2016 by XMS Capital Partners. XAI serves as investment advisor to both publicly traded and interval closed-end funds, XAI Octagon Floating Rate & Alternative Income Trust and Octagon XAI CLO Income Fund, respectively. In addition to investment advisory services, the firm also offers investment fund structuring and consulting services with a focus on registered closed-end funds to meet the needs of institutional investors. XAI offers custom product structuring and consulting services, including product development, market research, sales, marketing and fund administration. XAI believes that investors can benefit from new avenues to access a broad range of alternative investment strategies and managers. XAI provides individual investors with access to institutional-grade alternative managers. For more information, please visit www.xai.com/. Click here for details.
“Madison” and/or “Madison Investments” are the collective trade names of Madison Investment Holdings, Inc., Madison Asset Management, LLC and Madison Investment Advisors, LLC. Madison Asset Management, LLC and Madison Investment Advisors, LLC are each registered as investment advisers with the U.S. Securities and Exchange Commission.
Important additional information and where to find it
MCN, its trustees and officers will be deemed participants in the solicitation of proxies from MCN’s stockholders in connection with the matters to be considered at the special meeting of stockholders described herein (the “Special Meeting”). The names of MCN’s trustees and officers and information about their interests in MCN, by security holdings or otherwise, are set forth in MCN’s most recent proxy statement for its 2024 Annual Meeting of Stockholders, which was filed with the Securities and Exchange Commission (the “SEC”) on June 12, 2024. The proxy statement will be filed with the SEC in connection with the solicitation of proxies from MCN’s stockholders for the Special Meeting (the “Special Meeting Proxy Statement”). Stockholders are urged to read the Special Meeting Proxy Statement carefully and in its entirety when it becomes available because it will contain important information. Stockholders may obtain free copies of the Special Meeting proxy statement and other documents filed by MCN with the SEC at the SEC’s website at www.sec.gov. You may also obtain a free copy by contacting MCN toll-free at 800-767-0300.
