• 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

Portfolio Management


Ray Di Bernardo, CFA

Walter Dewey, CFA

Drew Justman, CFA

Portfolio Highlights

Top Ten Fund Holdings
(as of January 31, 2017)
GENERAL MOTORS CO2.8%
MARATHON PETROLEUM CORP2.6%
VISA INC CLASS A SHARES2.6%
QUALCOMM INC2.6%
BAKER HUGHES INC2.5%
GILEAD SCIENCES INC2.5%
PACCAR INC2.3%
SPDR S+P500 ETF TRUST2.3%
T ROWE PRICE GROUP INC2.2%
ORACLE CORP2.2%
% of Fund in Top Ten Securities24.5%
 

Key Highlights

(as of Tuesday February 28, 2017)
NAV 12.82
Market Price 12.17
Inception Date 4/27/2005
NYSE Symbol MSP
NAV Symbol XMSPX
Distribution Frequency Quarterly
Expense Ratio 0.98
 

Sector Concentration

Allocation as a % of Total Net Assets 
(as of December 31, 2016)
Short-Term Investments, Options, and Other Net Assets & Liabilities16.5%
Information Technology16.0%
Health Care14.7%
Consumer Discretionary11.0%
Financials8.9%
Industrials8.4%
Energy6.0%
Consumer Staples5.8%
ETFs5.0%
Telecommunication Services2.9%
Real Estate2.4%
Materials2.4%
 
Closed-end funds are listed on the New York Stock Exchange and nothing on this website is intended to be a solicitation to buy or an offer to sell such securities.

Contact Us

Investment Management:
800.767.0300