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XA Investments LLC (“XAI”) SUBSCRIPTION SERVICE TERMS AND CONDITIONS

These XAI Subscription Service Terms and Conditions (the “Terms”) together with the applicable subscription order form or invoice (the “Order Form”, collectively with the Terms, the “Agreement”), set forth the terms and conditions governing the access to and use of the Service by the licensee entity set forth in the Order Form (the “Licensee”). The term “Service” means certain compiled data, content, and information, documentation, and functionality provided by XAI to Licensee through a subscription service and further described in the Order Form. The term “Order Form” includes any electronic order form made available to Licensee by XAI for the Service.

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XAI Madison Equity Premium Income Fund

As of

Closing price

Closing NAV

Premium/discount

Current distribution rate1

Fund overview

The XAI Madison Equity Premium Income Fund (MCN) has a 20-year track record of delivering lower volatility and strong cashflows for shareholders. The Fund invests in an actively managed equity portfolio comprised of individual stocks and covered call options. MCN's investment objective is to seek a high level of current income with secondary objective of long-term capital appreciation, and the Fund does so by focusing on strategic stock market sectors that, in its opinion, provide the best opportunities for its “Growth-at-a-Reasonable-Price” style of investing. The Fund writes primarily out-of-the-money, longer term call options on the majority of individual stocks in the portfolio.

Objective

The Fund's primary investment objective is to provide a high level of current income and gains, with a secondary objective of capital appreciation. The Fund pursues its investment objectives by investing in a portfolio consisting primarily of high quality, large and mid-capitalization stocks that are, in the view of the Fund's Investment sub-adviser, selling at a reasonable price in relation to their long-term earnings growth rates. The Fund will, on an ongoing and consistent basis, sell covered call options on its portfolio stocks to seek to generate current earnings from option premiums. There can be no assurance that the Fund will achieve its investment objectives.

Adviser

XA Investments LLC

Sub-Adviser

Madison Investments, LLC

Snapshot (as of )

Closing price
Closing NAV
Premium/discount
Current distribution rate1
Tax reporting 1099 tax form
CUSIP
Ticker
NAV ticker
Shares outstanding
Total common assets
Inception Date
Leverage Ratio

Distribution Frequency

Quarterly

Footnotes are listed at the bottom of the page.

Management

Octagon

About Madison

Madison Investments (Madison) is an independent investment management firm based in Madison, Wisconsin. 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. The firm has managed covered call strategies for over 20 years through various market cycles. Madison offers domestic fixed income, U.S. and international equity, covered call, multi-asset, insurance, and credit union investment management strategies.

The Fund's investment strategy is built upon an equity portfolio that delivers an alternative income source via writing covered call options. By employing active stock selection and an active single stock option overlay, it differentiates the portfolio from the more common, index-based passive covered call writing strategies. Madison believes this provides greater opportunity to manage risk while receiving higher premiums available from individual stocks compared to index option premiums.

Madison has built a national reputation for its risk-managed portfolios that favor quality and long-term durability over speculation and the unconstrained pursuit of returns.

Participate and Protect

Investing can be an emotional experience. As guardians of its client’s assets, Madison strives to protect principal during falling markets and participate in market appreciation during rising markets. Madison believes adhering to this key investment tenet over time should lead to better-than-market results with lower volatility.

Active and Differentiated

Madison believes the best way to pursue clients’ investment goals is by focusing on its highest-conviction investment ideas, not aligning to a given benchmark. Madison tends to invest in actively managed, concentrated portfolios that deploy deep fundamental research and analysis focusing on high quality, free cash flow focused equities that provide a foundation for sustainable portfolio returns.

The Fund's expectation is that investors will participate near fully in market appreciation during bull markets and experience something less than full participation during bear markets compared with investors in portfolios holding more speculative and volatile securities. Therefore, the investment philosophy is intended to represent a conservative investment strategy.

The Madison team has a 20+ year track record managing covered call strategies.

Ray Di Bernardo

Ray Di Bernardo, CFA

Portfolio Manager

Ray Di Bernardo, CFA serves as a portfolio manager on the Fund since it's inception in 2004. He started working in the financial services industry in 1986 and joined Madison in 2003. Ray began his portfolio management career in Canada as an Investment Officer with a large Canadian trust company before moving to an international equity asset manager to serve as an equity analyst and co-manage a number of international mutual fund and institutional mandates, including Japanese and emerging market equities. In 2000, Ray moved to the United States and joined Chicago-based Concord Asset Management as the U.S. and international equity analyst. In 2003, he joined the Madison equity team and has co-managed the firm’s closed-end fund covered call strategy beginning in 2004. Ray has managed the Fund since its inception in 2004 and manages all other options-related mandates at Madison Investments. Ray earned his B.A. from the University of Western Ontario and earned his CFA charter in 1993.

Drew Justman

Drew Justman, CFA

Portfolio Manager

Drew Justman, CFA serves as a portfolio manager on the XAI Madison Equity Premium Income Fund. Drew started working in the financial services industry in 2000 and joined Madison in 2005. Prior to joining Madison Investments, he worked at Merrill Lynch and Scottrade. He earned his BBA in finance and economics and M.S. in finance from the University of Wisconsin-Madison.

Performance

Total returns (as of )

3M YTD 1Y 3Y 5Y 10Y SINCE INCEPTION
← Swipe to see additional data →

“Price” is based on the closing prices of MCN on the NYSE at the end of trading on the last trading day of each period. "Benchmark" is the CBOE S&P 500 BuyWrite Index is a benchmark index designed to track the performance of a hypothetical buy-write strategy on the S&P 500 Index. Performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be higher or lower than the data shown. Returns assume reinvestment of distributions, and NAV returns are net of fund expenses. See “Risks” at the bottom of this page.

Portfolio composition

Industry Allocation (% as of )

Industry Allocations are measured as a percentage of the Fund's total investments as of . These values represent the market value of the Fund’s positions and option contacts (not notional value). Allocations are not GAAP adjusted and may vary and are subject to change without notice. The total may not equal 100% due to rounding.

Fund shares are not guaranteed or endorsed by any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation. Shares of closed-end funds are subject to investment risks, including the possible loss of principal invested. Performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be higher or lower than the data shown.

An investment in this fund presents a number of risks and is not suitable for all investors. Investors should carefully review and consider potential risks before investing. For more detailed information on the specific risks associated with the Fund, please see the "Discussion of Risks" Note in the Fund's most recent Annual Shareholder Report here.

Fund characteristics (% as of )

Total Number of Holdings
Total Number of Equity Holdings
Total Number of Option Holdings
% of Equity Portfolio Covered by Call Options
Average Option Contract Length

Fund Characteristics are as of , may vary and are subject to change without notice.

Fund shares are not guaranteed or endorsed by any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation. Shares of closed-end funds are subject to investment risks, including the possible loss of principal invested. Performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be higher or lower than the data shown.

An investment in this fund presents a number of risks and is not suitable for all investors. Investors should carefully review and consider potential risks before investing. For more detailed information on the specific risks associated with the Fund, please see the "Discussion of Risks" Note in the Fund's most recent Annual Shareholder Report here.

Top Ten Equity Portfolio Holdings

View All Holdings

Holding % Portfolio
Holding % Portfolio

Holdings are measured as a percentage of the funds Total Investments as of . Holdings are not GAAP adjusted and may vary and are subject to change without notice.

Fund shares are not guaranteed or endorsed by any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation. Shares of closed-end funds are subject to investment risks, including the possible loss of principal invested. Performance data quoted represents past performance. Past performance does not guarantee future results. Current performance may be higher or lower than the data shown.

An investment in this fund presents a number of risks and is not suitable for all investors. Investors should carefully review and consider potential risks before investing. For more detailed information on the specific risks associated with the Fund, please see the "Discussion of Risks" Note in the Fund's most recent Annual Shareholder Report here.

Option Portfolio

The Fund employs an active single stock call option overlay that, when compared with index options overlays, provides more effective yield and hedging opportunity as each option is tailored to the sub-advisers view of the underlying stock holding.

Average Option Contract Length:

% of Equity Portfolio Covered by Call Options as of

An investment in this fund presents a number of risks and is not suitable for all investors. Investors should carefully review and consider potential risks before investing. For more detailed information on the specific risks associated with the Fund, please see the "Discussion of Risks" Note in the Fund's most recent Annual Shareholder Report here.

Distributions & FAQ

Common share distributions

Declared and Paid Quarterly
Payable Date Ex-Date Declaration Date Amount Distribution Type
← Swipe to see additional data →
Distributions data is unavailable at this time.

Frequently Asked Questions

What changed recently?

During a special meeting on October 15, 2024 (the “Special Meeting”), shareholders of the Madison Covered Call & Equity Strategy Fund (NYSE: MCN) (“MCN” or the “Fund”) approved multiple proposals:

  • A newly constituted slate of trustees to serve on the Fund’s board of trustees;
  • A new investment advisory agreement between the Fund and XA Investments, LLC (“XAI”) appointing XAI as the Fund’s investment advisor (the “New Advisory Agreement”);
  • A new investment sub-advisory agreement among the Fund, XAI and Madison Asset Management, LLC (“Madison”) appointing Madison as the Fund’s investment sub-advisor (the “New Sub-Advisory Agreement”).

What are the new Advisory and Sub-Advisory agreements?

Under the New Advisory Agreement, XAI is responsible for the Fund’s overall management and investment strategy. Under the New Sub-Advisory Agreement, Madison Investments will maintain responsibility for the Fund’s day-to-day portfolio management. The New Advisory Agreement and New Sub-Advisory Agreement went into effect on December 2, 2024.

Did the Fund’s name recently change?

The Fund's name changed in December 2024 from Madison Covered Call and Equity Strategy Fund to XAI Madison Equity Premium Income Fund. The name change was in conjunction with the XA Investments’ appointment as the Fund’s adviser.

Where can I find information about the Fund's share price and net asset value (NAV)?

The Fund's share price and NAV can be found at the top of the page.

Does the Fund pay distributions?

The Fund intends to pay substantially all of its net investment income, if any, to common shareholders through quarterly distributions, and any net realized long-term capital gains at least annually. There is no assurance the Fund will continue to make regular monthly distributions or that it will do so at a particular rate. Distributions may be paid by the Fund from any permitted source and, from time to time, all or a portion of a distribution may be a return of capital.

How do I know if I am a registered stockholder?

A registered stockholder is one who holds shares directly with the Trust. If shares were purchased through a broker, the shares may be registered in the name of the broker (held in “street name”) instead of being registered in the name of the beneficial owner. Individual stockholders whose shares are held in street name should contact their broker for more information on their participation in the DRIP.

Are distributions taxable to shareholders?

Distributions are generally taxable for stockholders as ordinary income and/or capital gain. The Fund will send each of its U.S. registered stockholders an annual Form 1099 after the calendar year end. Form 1099 details the amounts includible in a U.S. stockholder's taxable income for the year and the source(s) of such income.

Fees and Expenses

ANNUAL EXPENSES (as of ) AS A PERCENTAGE OF ASSETS
← Swipe to see additional data →

1. The Fund has retained the Adviser to provide investor support services and secondary market support services in connection with the ongoing operation of the Fund. The Adviser has agreed to waive investor support and secondary market support services fee until at least December 2, 2026.

2. The Adviser has agreed to waive its management fee and/or reimburse expenses of the Fund to the extent necessary to limit the Fund’s total annual expenses to the annual rate of 1.08% of the Fund’s managed assets, exclusive of certain excluded expenses, through December 2, 2026 (the “Operating Expense Limitation Agreement”). The following expenses are excluded under the Operating Expense Limitation Agreement: taxes, leverage and interest expenses, indirect expenses such as brokerage commissions and other transactional expenses, dividends or interest on short positions, acquired fund fees and expenses, extraordinary and non-routine expenses such as litigation expenses, or the compensation of the Fund’s independent trustees.

Risks

An investment in the Fund is subject to investment risk, including the possible loss of your entire investment. There can be no assurance that the Fund’s objectives will be achieved. The Fund is a diversified, closed-end management investment company. Shares of closed-end management investment companies frequently trade at a discount from their net asset value, which is a risk separate and distinct from the risk that the fund's net asset value could decrease as a result of its investment activities. The principal risks of investing in the Fund include option risk, tax risk, derivatives risk, concentration risk, equity risk, mid cap risk, and market risk. The writer of a covered call option forgoes, during the option’s life, the opportunity to profit from increases in the market value of the security covering the call option above the sum of the premium and the strike price of the call, but has retained the risk of loss should the price of the underlying security decline. Investors should see the "Discussion of Risks" Note in the Fund’s most recent Annual Report on Form N-CSR for a detailed discussion of factors investors should consider carefully before deciding to invest in the Fund’s Shares.

Distributions: The Fund intends to pay substantially all of its distributions from net investment capital. However, the Fund may pay any distributions from any permitted source and, from time to time, all or a portion of a distribution maybe a return of capital and capital gains. Distributions are not guaranteed in frequency or amount.

Shares of closed‐end management investment companies frequently trade at a discount from their net asset value, which is a risk separate and distinct from the risk that the Fund’s net asset value could decrease as a result of its investment activities.

The Fund may engage in certain derivatives transactions that have economic characteristics similar to leverage. The use of derivatives may increase overall risk by magnifying the effect of both gains and losses leading to large changes in value and potentially large financial loss. A counterparty to a derivative transaction may fail to meet its obligations which may also lead to a financial loss.

Fund shares are not guaranteed or endorsed by any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation. Shares of closed-end funds are subject to investment risks, including the possible loss of principal invested.  Performance data quoted represents past performance. Past performance is no guarantee of future results. Current performance may be higher or lower than the data shown.

Footnotes

1The current distribution rate is calculated as the most recent distribution annualized and divided by the net asset value per share on the date set forth above. Distributions are intended to be paid from net investment income; however, distributions may be funded from any source including return of capital.

2To assist the Fund with the goal of more stable monthly distributions, the Fund may distribute more or less than the amount of the net investment income earned in a particular period. There is no assurance the Fund will pay regular monthly distributions or that it will do so at a particular rate. Distributions may be paid by the Fund from any permitted source and, from time to time, all or a portion of a distribution may be a return of capital.

Resources

Literature & News

Tax Information

Fund Reports

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