- Madison Strategic Sector Premium Fund (MSP)
Fund Objective
MSP has a primary objective of obtaining a high level of current income and gains, with a secondary objective of achieving long-term capital appreciation. We believe these goals can be met by investing in large and mid-capitalizations stocks that are, in our opinion, selling at a reasonable price with respect to their long-term earnings growth rates. The income comes in the form option premiums which are generated by writing covered calls on a majority of stocks in the portfolio.
Investment Strategies
MSP will invest in stocks within certain economic sectors that, in our opinion, are the most attractive for our “Growth-at-a-Reasonable Price” style of investing. In current market conditions, it is our belief that these sectors provide opportunities for higher option premiums than call options on stocks in other sectors. MSP’s sector concentration has most often fallen in the following four areas:
- Consumer Discretionary and Retail
- Technology
- Medical/Health and Pharmaceutical
- Financial Institutions
Quarterly Fund Fact Sheet
Disclosure Documents
Dividend Releases
Press Releases & Notices
Special Meeting Proxy Statement (6/30/17)
Annual Meeting Proxy Statement (6/26/17)
Press Release – Board Approves Merger of MSP into MCN (5/24/17)
19A-1 Notice - 6/17
19A-1 Notice - 3/17
Form 8937 (2016)
Form 8937 (2015)
Form 8937 (2012)
Additional Tax Notices & Releases
Portfolio Management
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.
Portfolio Highlights
| Top Ten Fund Holdings | |
| (as of July 31, 2017) | |
| T MOBILE US INC | 3.8% |
| LOWE S COS INC | 3.2% |
| T ROWE PRICE GROUP INC | 2.8% |
| DOW CHEMICAL CO/THE | 2.8% |
| GILEAD SCIENCES INC | 2.7% |
| QUALCOMM INC | 2.6% |
| NRG ENERGY INC | 2.5% |
| BANK OF AMERICA CORP | 2.4% |
| APACHE CORP | 2.4% |
| COSTCO WHOLESALE CORP | 2.4% |
| % of Fund in Top Ten Securities | 27.6% |
Key Highlights
| (as of Friday August 18, 2017) | |
| NAV | 12.18 |
| Market Price | 11.51 |
| Inception Date | 4/27/2005 |
| NYSE Symbol | MSP |
| NAV Symbol | XMSPX |
| Distribution Frequency | Quarterly |
| Expense Ratio | 0.98 |
Sector Concentration
| (as of March 31, 2017) | |
| Information Technology | 18.2% |
| Short-Term Investments, Options, and Other Net Assets & Liabilities | 16.0% |
| Health Care | 13.6% |
| Consumer Discretionary | 8.6% |
| ETFs | 7.2% |
| Financials | 6.5% |
| Energy | 6.0% |
| Industrials | 5.6% |
| Real Estate | 5.3% |
| Consumer Staples | 4.1% |
| Materials | 3.2% |
| Telecommunication Services | 3.1% |
Contact Us
Investment Management:
800.767.0300
