Madison Covered Call & Equity Strategy Fund (NYSE:MCN) is a diversified, closed-end management investment company that seeks to generate income and long-term capital appreciation through a combination of covered-call writing and equity investments. The fund primarily targets U.S. large- and mid-capitalization equities and selectively writes call options on those holdings to enhance current income. By overlaying an options strategy atop a core equity portfolio, MCN aims to deliver competitive total returns while mitigating downside market risks.
In pursuing its objectives, the fund allocates a majority of its assets to common stocks of companies across a variety of sectors, including technology, financials, consumer staples and healthcare. The portfolio management team identifies equities with attractive valuations and growth prospects, then systematically sells call options against selected positions to capture premium income. This dual approach allows investors to participate in potential equity gains while benefiting from the systematic generation of option premium.
Launched in 2016, MCN is managed by Madison Investment Advisors, LLC, an affiliate of Madison Funds, which brings decades of investment experience to the fund’s strategy. The fund’s structure as a closed-end fund enables active portfolio management without the liquidity constraints typical of open-end mutual funds. MCN lists on the New York Stock Exchange, providing daily liquidity to investors through the trading of its shares.
Leadership of the fund is spearheaded by a seasoned team of portfolio managers and analysts based in Milwaukee, Wisconsin. David C. Semple, President and Chief Executive Officer of Madison Investment Advisors, leverages a deep background in equity and options markets to oversee strategy implementation. The broader investment team collaborates on security selection, risk management and options execution, ensuring that MCN adheres to its mandate of generating sustainable income while pursuing long-term capital growth.
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