- Madison Strategic Sector Premium Fund (MSP)
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.
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
- Medical/Health and Pharmaceutical
- Financial Institutions
Quarterly Fund Fact Sheet
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||2.8%|
|MARATHON PETROLEUM CORP||2.6%|
|VISA INC CLASS A SHARES||2.6%|
|BAKER HUGHES INC||2.5%|
|GILEAD SCIENCES INC||2.5%|
|SPDR S+P500 ETF TRUST||2.3%|
|T ROWE PRICE GROUP INC||2.2%|
|% of Fund in Top Ten Securities||24.5%|
|(as of Tuesday February 28, 2017)|
|(as of December 31, 2016)|
|Short-Term Investments, Options, and Other Net Assets & Liabilities||16.5%|