XA Investments to Become Investment Adviser to Madison Investments Closed-End Fund and Will Retain Madison Investments as Portfolio Manager
17 July 2024 - 11:36PM
Business Wire
Reflects Increasing Investor Demand for Equity Income
Funds
XA Investments (XAI), an alternative investment management and
consulting firm, announced the pending transaction, by which XAI
will become investment adviser to the Madison Covered Call &
Equity Strategy Fund (NYSE: MCN), a $146 million listed closed-end
fund. The transaction is subject to approval by MCN shareholders.
Notably, Madison Investments will maintain portfolio management
responsibilities as sub-adviser to MCN, also subject to approval by
MCN shareholders.
XAI is committed to providing investors with access to
institutional-caliber investments. The acquisition would expand the
number of closed-end funds currently on the XAI platform to three -
XAI Octagon Floating Rate & Alternative Income Trust (NYSE:
XFLT), Octagon XAI CLO Income Fund (OCTIX) and Madison Covered Call
and Equity Strategy Fund. 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, who has managed MCN for 20
years, said “We are excited to continue to deliver lower volatility
and strong cash flows to our shareholders. Partnering with XAI will
allow us to focus on investment management, ensuring that the best
interests of MCN’s shareholders are upheld. It will enable Madison
Investments to pursue its strategic growth priorities, including an
investment lineup of separately managed accounts, open-end mutual
funds, and active ETFs.”
“I am pleased to welcome Madison Investments to the XAI
closed-end fund platform,” said Kimberly Flynn, President of XAI. I
believe that XAI can deliver three primary benefits to the
shareholders of the Madison Covered Call & Equity Strategy
Fund: (1) superior growth in assets under management and scale
efficiencies; (2) continuity of the existing portfolio management
team; and (3) enhanced investor relations.”
As noted above, XAI’s appointment as investment adviser to MCN
is subject to shareholder approval and is expected to occur in the
fourth quarter of 2024.
About XA Investments
XA Investments LLC (“XAI”) is a Chicago-based 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 $26 billion in assets under management as of March
31, 2024, and is recognized as one of the nation’s top investment
firms. Madison Investments offers domestic fixed income, U.S. and
international equity, covered call, multi-asset, insurance, and
credit union investment management strategies.
“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).
Important Additional Information and Where to Find It
MCN has filed a preliminary proxy statement and intends to file
the definitive proxy statement (the “Proxy Statement”) with the
U.S. Securities and Exchange Commission (the “SEC”) in connection
with the proposed acquisition and solicitation of proxies at a
forthcoming special meeting of shareholders of MCN in the fourth
quarter of 2024 (the “2024 Special Meeting”). Prior to the 2024
Special Meeting, MCN will file with the SEC and subsequently
distribute to MCN shareholders of record as of July 22, 2024, the
Proxy Statement together with a proxy card. SHAREHOLDERS ARE
URGED TO READ THE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR
SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT DOCUMENTS THAT ARE
FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME
AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.
Shareholders will be able to obtain, free of charge, copies of the
Proxy Statement, any amendments or supplements thereto and any
other documents (including the proxy card) when filed by MCN with
the SEC in connection with the 2024 Special Meeting at the SEC’s
website (http://www.sec.gov) or at the website disclosed in the
Proxy Statement.
The Fund’s shareholders will be able to obtain copies of the
definitive proxy statement and accompanying materials, when
available, by calling the Fund’s proxy agent toll-free at
1-866-679-6748.
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version on businesswire.com: https://www.businesswire.com/news/home/20240717309487/en/
Kimberly Flynn, President XA Investments LLC Phone: 888-903-3358
Email: KFlynn@xainvestments.com www.xainvestments.com