- Covered Call & Equity Income Fund
Stock Investing With Partial Downside Protection
The Covered Call and Equity Income Fund seeks to provide consistent total return and, secondarily, to provide a high level of income and gains from option premiums.
The Covered Call and Equity Income Fund invests, under normal conditions, primarily in common stocks of large-and mid-capitalization issuers that are, in the view of the funds' investment adviser, selling at a reasonable price in relation to their long-term earnings growth rates.
The fund will seek to generate current earnings from option premiums by writing (selling) covered call options on a substantial portion of its portfolio securities. The fund seeks to produce a high level of current income and current gains generated from option writing premiums and, to a lesser extent, from dividends.
Under normal market conditions, the fund will invest at least 80% of its net assets in common stocks, with at least 65% of those in large capitalization issuers. The fund may invest the remainder of its common stock investments in companies whose market capitalization is considered to be "mid-cap".
The fund will employ a strategy of writing covered call options on a substantial portion of the common stocks in the fund's portfolio, and may, to a lesser extent, pursue an option strategy that includes the writing of both put and call options.
Ray Di Bernardo, CFA
Ray is the lead portfolio manager for Madison's Covered Call portfolios and has more than 25 years of equity management experience. Prior to joining Madison in 2003 he was an equity analyst at Concord Trust in Chicago, and before that, an equity analyst and co-manager of international and emerging market portfolios at a Toronto-based international equity firm. Ray holds a BA from the University of Western Ontario.
Walter Dewey, CFA
Walter has nearly 30 years of investment experience and is a portfolio manager on Madison’s Covered Call and Growth investment team. He also develops customized portfolios for Madison’s high net worth clients. Walter spent the majority of his career at U.S. Bancorp where he had responsibilities in research, portfolio management, and client relationships. He managed the Firstar Growth Fund and also spent considerable time speaking on investment strategy for the organization at a national level. Walter earned his BBA in Finance from the University of Wisconsin.
Drew Justman, CFA
Drew serves as a portfolio manager on Madison’s Value Team. Prior to joining Madison, he worked with Merrill Lynch. Drew holds a BBA in Finance and Economics and an MS in Finance from the University of Wisconsin. He also graduated from the Applied Security Analysis Program.
|Top Ten Fund Holdings|
|(as of January 31, 2017)|
|GENERAL MOTORS CO||2.7%|
|VISA INC CLASS A SHARES||2.5%|
|MARATHON PETROLEUM CORP||2.5%|
|GILEAD SCIENCES INC||2.4%|
|SPDR S+P500 ETF TRUST||2.3%|
|UNITED TECHNOLOGIES CORP||2.2%|
|JM SMUCKER CO/THE||2.2%|
|BAKER HUGHES INC||2.1%|
|PAYPAL HOLDINGS INC||2.0%|
|% of Fund in Top Ten Securities||23.3%|
|Net Assets (as of 12/31/16)||$110.0 Million|
|Turnover (as of 10/31/16)||135%|
|(as of Tuesday February 28, 2017)|
|Class A||Class C||Class Y||Class R6|