XAI Octagon Pref's 15-min chart triggered downward turn for multiple SMAs.

The 15-minute chart of XAI Octagon Pref has triggered a downward turn for the 20-day, 50-day, 100-day, and 200-day simple moving averages (SMA). This shift in market sentiment indicates that sellers are gaining control and exerting downward pressure on the price in the short-term, mid-term, and long-term. As a result, the market is experiencing a change in direction, with the price likely to continue trending downward.

In a significant move for the investment landscape, the Madison Covered Call & Equity Strategy Fund (MCN) has announced a series of strategic changes following a special meeting on October 15, 2024. Shareholders of the Fund approved a new slate of trustees, a new investment advisory agreement with XA Investments, LLC (XAI), and a new investment sub-advisory agreement with Madison Asset Management, LLC (Madison). The Fund will also rebrand as the XAI Madison Equity Premium Income Fund and join the XAI Funds platform, according to a Business Wire release.

Under the new advisory and sub-advisory agreements, XAI will manage the Fund's overall investment strategy, while Madison will continue to handle day-to-day portfolio management. The agreements, set to be executed on or around December 2, 2024, will not alter the Fund's day-to-day operations, management fees, or investment objectives. The Fund's ticker symbol, MCN, will remain unchanged, but its name will change to XAI Madison Equity Premium Income Fund in December 2024, the release said.

The rebranding aligns with XAI's mission to provide better products and portfolio outcomes for investors. The Fund will join the XAI Funds platform, which currently includes the XAI Octagon Floating Rate & Alternative Income Trust (XFLT) and the Octagon XAI CLO Income Fund (OCTIX). The new arrangement aims to leverage scale efficiencies, continuity of management, enhanced investor relations, and improved secondary market trading, the release noted.

Portfolio manager Ray Di Bernardo, who has managed MCN for 20 years, expressed enthusiasm for the partnership with XAI. "We’ve been managing MCN for 20 years, seeking to deliver lower volatility and strong cashflows for shareholders. We are excited for the partnership with XA Investments and what it represents for the next phase of fund growth," Di Bernardo said in the release.

Kimberly Flynn, President of XAI, welcomed MCN and its shareholders to the XAI Funds platform. "XAI stands ready to serve the MCN shareholders and will seek to deliver four primary benefits to the shareholders: (i) scale efficiencies through creative and conventional growth in assets; (ii) continuity of the existing portfolio management team and principal investment strategy; (iii) enhanced investor relations; and (iv) dogged pursuit of improved secondary market trading," Flynn stated in the release.

The Madison Covered Call & Equity Strategy Fund is an actively managed closed-end fund that invests in a diversified portfolio of U.S. equity securities, augmented by a covered call strategy to reduce volatility and generate attractive cash flows for shareholders, the release added.

ReferencesMadison Covered Call & Equity Strategy Fund Announces Shareholder Approval of XA Investments as Investment Adviser and Madison Investments as Sub-Adviser; Fund to Rebrand as XAI Madison Equity Premium Income Fund