XAI Madison Equity Premium Income Fund Declares its Quarterly Distribution of $0.18 per Share – Fund to Change Distribution Frequency
XAI Madison Equity Premium Income Fund (MCN) has announced its quarterly distribution of $0.18 per share, maintaining the same amount as the previous quarter. The distribution is payable on April 1, 2025, to shareholders of record as of March 17, 2025.
In a significant change, the Fund will transition from quarterly to monthly distributions, with the first monthly declaration scheduled for April 1, 2025, and the first distribution on May 1, 2025. According to Kimberly Flynn, President of XA Investments, this change aims to help investors better manage their cashflow needs.
The Fund's primary objective is to achieve high current income and gains, with capital appreciation as a secondary goal. This is pursued through a portfolio of common stocks and an option strategy, primarily writing covered call options to generate income from premiums and dividends.
Il Fondo XAI Madison Equity Premium Income (MCN) ha annunciato la sua distribuzione trimestrale di 0,18 $ per azione, mantenendo lo stesso importo del trimestre precedente. La distribuzione sarà pagabile il 1 aprile 2025, agli azionisti registrati al 17 marzo 2025.
In un cambiamento significativo, il Fondo passerà da distribuzioni trimestrali a distribuzioni mensili, con la prima dichiarazione mensile prevista per il 1 aprile 2025 e la prima distribuzione il 1 maggio 2025. Secondo Kimberly Flynn, Presidente di XA Investments, questo cambiamento mira ad aiutare gli investitori a gestire meglio le loro esigenze di liquidità.
Il principale obiettivo del Fondo è ottenere un alto reddito attuale e guadagni, con l'apprezzamento del capitale come obiettivo secondario. Questo viene perseguito attraverso un portafoglio di azioni ordinarie e una strategia di opzioni, principalmente scrivendo opzioni call coperte per generare reddito da premi e dividendi.
El Fondo XAI Madison Equity Premium Income (MCN) ha anunciado su distribución trimestral de $0.18 por acción, manteniendo la misma cantidad que en el trimestre anterior. La distribución se pagará el 1 de abril de 2025, a los accionistas registrados a partir del 17 de marzo de 2025.
En un cambio significativo, el Fondo pasará de distribuciones trimestrales a distribuciones mensuales, con la primera declaración mensual programada para el 1 de abril de 2025 y la primera distribución el 1 de mayo de 2025. Según Kimberly Flynn, Presidenta de XA Investments, este cambio tiene como objetivo ayudar a los inversores a gestionar mejor sus necesidades de flujo de efectivo.
El objetivo principal del Fondo es lograr altos ingresos actuales y ganancias, con la apreciación del capital como objetivo secundario. Esto se persigue a través de una cartera de acciones ordinarias y una estrategia de opciones, principalmente escribiendo opciones de compra cubiertas para generar ingresos de primas y dividendos.
XAI 매디슨 주식 프리미엄 소득 펀드 (MCN)는 분기 배당금으로 주당 0.18 달러를 발표하며, 이는 이전 분기와 동일한 금액입니다. 이 배당금은 2025년 4월 1일에 지급되며, 2025년 3월 17일 기준 주주에게 지급됩니다.
중요한 변화로, 펀드는 분기 배당금에서 월간 배당금으로 전환됩니다. 첫 번째 월간 배당금 선언은 2025년 4월 1일로 예정되어 있으며, 첫 번째 배당금은 2025년 5월 1일에 지급됩니다. XA Investments의 사장인 킴벌리 플린에 따르면, 이 변화는 투자자들이 현금 흐름 요구를 더 잘 관리할 수 있도록 돕기 위한 것입니다.
펀드의 주요 목표는 높은 현재 소득과 이익을 달성하는 것이며, 자본 증가는 부차적인 목표입니다. 이는 일반 주식 포트폴리오와 옵션 전략을 통해 추구되며, 주로 프리미엄과 배당금에서 수익을 창출하기 위해 커버드 콜 옵션을 작성합니다.
Le Fonds XAI Madison Equity Premium Income (MCN) a annoncé sa distribution trimestrielle de 0,18 $ par action, maintenant le même montant que le trimestre précédent. La distribution sera payable le 1er avril 2025, aux actionnaires enregistrés au 17 mars 2025.
Dans un changement significatif, le Fonds passera de distributions trimestrielles à distributions mensuelles, la première déclaration mensuelle étant prévue pour le 1er avril 2025, et la première distribution le 1er mai 2025. Selon Kimberly Flynn, Présidente de XA Investments, ce changement vise à aider les investisseurs à mieux gérer leurs besoins de trésorerie.
L'objectif principal du Fonds est d'obtenir un revenu actuel élevé et des gains, avec l'appréciation du capital comme objectif secondaire. Cela est réalisé à travers un portefeuille d'actions ordinaires et une stratégie d'options, principalement en écrivant des options d'achat couvertes pour générer des revenus provenant des primes et des dividendes.
Der XAI Madison Equity Premium Income Fund (MCN) hat seine vierteljährliche Ausschüttung von 0,18 $ pro Aktie bekannt gegeben und bleibt damit auf dem gleichen Niveau wie im vorherigen Quartal. Die Ausschüttung ist am 1. April 2025 an die Aktionäre zahlbar, die am 17. März 2025 im Aktienregister stehen.
In einer bedeutenden Änderung wird der Fonds von vierteljährlichen auf monatliche Ausschüttungen umstellen, wobei die erste monatliche Erklärung für den 1. April 2025 geplant ist und die erste Ausschüttung am 1. Mai 2025 erfolgt. Laut Kimberly Flynn, Präsidentin von XA Investments, zielt diese Änderung darauf ab, den Anlegern zu helfen, ihre Liquiditätsbedürfnisse besser zu verwalten.
Das Hauptziel des Fonds ist es, hohe aktuelle Einkünfte und Gewinne zu erzielen, wobei die Kapitalwertsteigerung ein sekundäres Ziel darstellt. Dies wird durch ein Portfolio aus Stammaktien und einer Optionsstrategie verfolgt, wobei hauptsächlich gedeckte Kaufoptionen geschrieben werden, um Einkünfte aus Prämien und Dividenden zu generieren.
- Consistent quarterly distribution maintained at $0.18 per share
- Transition to monthly distributions improving shareholder cash flow management
- Stable income strategy through covered call options
- Distributions may include return of capital, potentially reducing shareholder's tax basis
- No guarantee of future distribution amounts or consistency
Insights
The shift from quarterly to monthly distributions by XAI Madison Equity Premium Income Fund represents a shareholder-friendly move without changing the fundamental economics of the investment. This administrative change maintains the same total annual distribution rate while potentially providing practical benefits to income-focused investors.
Monthly distributions have gained popularity among income funds and REITs as they better align with investors' regular expense patterns. For retirees and others who rely on investment income for living expenses, this change eliminates the need to budget quarterly payments across three months, potentially reducing personal cash reserves needed between distribution dates.
From a mathematical perspective, the change has negligible impact on total returns. An investor reinvesting distributions might see an extremely minor benefit from more frequent compounding, but this effect would be minimal given current interest rates. The fund will likely distribute approximately
Interestingly, the fund's disclosures about distribution sources highlight an important consideration for investors. The statement that distributions may come from net investment income, capital gains, or return of capital underscores that the distribution amount alone doesn't indicate fund performance. Without visibility into the composition of these payments, investors cannot determine if distributions represent genuine investment returns or partial return of their principal.
The covered call strategy mentioned remains the core approach for generating income, which typically performs best in flat or slightly bullish markets with moderate volatility. This strategy exchanges some upside potential for current income through option premium collection, making it particularly suitable for the fund's stated primary objective of current income generation.
CHICAGO, March 03, 2025 (GLOBE NEWSWIRE) -- XAI Madison Equity Premium Income Fund (the “Fund” or “MCN”) has declared its regular quarterly distribution of
In addition, the Fund announced that it will change its distribution frequency from quarterly to monthly. The first monthly declaration will be made on April 1, 2025, and the first monthly distribution will be made on May 1, 2025. Kimberly Flynn, President of XA Investments, said, “MCN has a long history of making consistent periodic payments to shareholders. We believe the change to monthly distributions will enable investors to better manage their cashflow needs.”
The following dates apply to the declaration:
| Ex-Dividend Date | March 17, 2025 | |
| Record Date | March 17, 2025 | |
| Payable Date | April 1, 2025 | |
| Amount | ||
| Change from Previous Quarter | No change | |
Common share distributions may be paid from net investment income (regular interest and dividends), capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Fund’s common shareholders on Form 1099 after the end of the 2025 calendar year. Shareholders should not assume that the source of a distribution from the Fund is net income or profit. For further information regarding the Fund’s distributions, please visit www.xainvestments.com.
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The Fund’s net investment income and capital gain can vary significantly over time; however, the Fund seeks to maintain more stable common share quarterly distributions over time. The Fund’s final taxable income for the current fiscal year will not be known until the Fund’s tax returns are filed.
As a registered investment company, the Fund is subject to a
The common share distributions paid by the Fund for any particular period may be more than the amount of net investment income from that period. As a result, all or a portion of a distribution may be a return of capital, which is in effect a partial return of the amount a common shareholder invested in the Fund, up to the amount of the common shareholder’s tax basis in their common shares, which would reduce such tax basis. Although a return of capital may not be taxable, it will generally increase the common shareholder’s potential gain, or reduce the common shareholder’s potential loss, on any subsequent sale or other disposition of common shares.
Future common share distributions will be made if and when declared by the Fund’s Board of Trustees, based on a consideration of number of factors, including the Fund’s net investment income, financial performance and available cash. There can be no assurance that the amount or timing of common share distributions in the future will be equal or similar to that described herein or that the Board of Trustees will not decide to suspend or discontinue the payment of common share distributions in the future.
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The Fund’s objective is to achieve a high level of current income and gains, with a secondary objective of capital appreciation. The Fund intends to pursue its objective by investing in a portfolio of common stocks and utilizing an option strategy, primarily by writing (selling) covered call options on a substantial portion of the common stocks in the portfolio in order to generate current income and gains from option writing premiums and, to a lesser extent, from dividends. Market action can impact dividend issuance as the Fund’s total assets affect the Fund’s future dividend prospects. The Fund provides additional information on its website at www.xainvestments.com.
About XA Investments
XA Investments LLC (“XAI”) serves as the Trust’s investment adviser. XAI is a Chicago-based firm founded by XMS Capital Partners in 2016. XAI serves as the investment adviser for two listed closed-end funds and an interval closed-end fund. The listed closed-end funds, the XAI Octagon Floating Rate & Alternative Income Trust (NYSE: XFLT) and XAI Madison Equity Premium Income Fund (NYSE: MCN) both trade on the New York Stock Exchange. The interval closed-end fund, Octagon XAI CLO Income Fund (OCTIX), is newly launched and has been made widely available to investors.
In addition to investment advisory services, the firm also provides investment fund structuring and consulting services focused on registered closed-end funds to meet institutional client needs. XAI offers custom product build and consulting services, including development and market research, sales, marketing, fund management.
XAI believes that the investing public can benefit from new vehicles to access a broad range of alternative investment strategies and managers. XAI provides individual investors with access to institutional-caliber alternative managers. For more information, please visit www.xainvestments.com.
About XMS Capital Partners
XMS Capital Partners, LLC, established in 2006, is a global, independent, financial services firm providing M&A, corporate advisory and asset management services to clients. It has offices in Chicago, Boston and London. For more information, please visit www.xmscapital.com.
About Madison Investments
Madison Investments is an independent investment management firm based in Madison, WI. The firm was founded in 1974, has approximately
Madison and/or Madison Investments is the unifying tradename of Madison Investment Holdings, Inc., Madison Asset Management, LLC, and Madison Investment Advisors, LLC. Madison Funds are distributed by MFD Distributor, LLC. Madison is registered as an investment adviser with the U.S. Securities and Exchange Commission. MFD Distributor, LLC is registered with the U.S. Securities and Exchange Commission as a broker-dealer and is a member firm of the Financial Industry Regulatory Authority www.finra.org.
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XAI does not provide tax advice; please consult a professional tax advisor regarding your specific tax situation. Income may be subject to state and local taxes, as well as the federal alternative minimum tax.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Fund carefully before investing. For more information on the Fund, please visit the Fund’s webpage at www.xainvestments.com.
This press release shall not constitute an offer to sell or a solicitation to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer or solicitation or sale would be unlawful prior to registration or qualification under the laws of such state or jurisdiction.
| NOT FDIC INSURED | NO BANK GUARANTEE | MAY LOSE VALUE |
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Media Contact:
Kimberly Flynn, President
XA Investments LLC
Phone: 888-903-3358
Email: KFlynn@XAInvestments.com
www.xainvestments.com
FAQ
What is the latest quarterly distribution amount for XAI Madison Equity Premium Income Fund (MCN)?
When will MCN switch from quarterly to monthly distributions?
What are the investment objectives of MCN?
How does MCN generate income for its distributions?
