Filing Details

 

1	NAME OF REPORTING PERSON   Karpus Investment Management
2	CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP		(a) x   (b) o
3	SEC USE ONLY
4	SOURCE OF FUNDS   AF
5	CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)		¨
6	CITIZENSHIP OR PLACE OF ORGANIZATION   NEW YORK
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH	7	SOLE VOTING POWER   1,973,917
	8	SHARED VOTING POWER   -
	9	SOLE DISPOSITIVE POWER   1,973,917
	10	SHARED DISPOSITIVE POWER   -
11	AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON   1,973,917
12	CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES		o
13	PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)   10.24%
14	TYPE OF REPORTING PERSON   IA

 

1	NAME OF REPORTING PERSON   George W. Karpus
2	CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP		(a) x   (b) o
3	SEC USE ONLY
4	SOURCE OF FUNDS                   AF
5	CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO ITEM 2(d) OR 2(e)		¨
6	CITIZENSHIP OR PLACE OF ORGANIZATION   NEW YORK
NUMBER OF SHARES BENEFICIALLY OWNED BY EACH REPORTING PERSON WITH	7	SOLE VOTING POWER   76,950
	8	SHARED VOTING POWER   42,685
	9	SOLE DISPOSITIVE POWER   76,950
	10	SHARED DISPOSITIVE POWER   42,685
11	AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON   119,635
12	CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES		o
13	PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)   Less than 1%
14	TYPE OF REPORTING PERSON   OO

 

 

 

 

 

Item 3.

Source and Amount of Funds or Other Consideration..

 

 

 

 

 

Item 4.

Purpose of Transaction..

 

 

 

 

 

 

Item 5.

Interest in Securities of the Issuer.

 

 

 

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Item 6.

Contracts, Arrangements, Understandings or Relationships With Respect to Securities of the Issuer..

Item 7.

Material to be Filed as Exhibits..

 

 

 

 

 

 

 

	KARPUS MANAGEMENT, INC.
	By:	/s/ Daniel Lippincott
		Name:	Daniel Lippincott
		Title:	Senior Tax-Sensitive Manager

	KARPUS INVESTMENT MANAGEMENT DEFINED BENEFIT PLAN
	By:	/s/ Kathleen F. Crane
		Name:	Kathleen F. Crane
		Title:	Chief Financial Officer & Chief Compliance Officer of Karpus Investment Management

	/s/ George W. Karpus
	GEORGE W. KARPUS

 

 

 

 

 

 

Name	Position & Present Principal Occupation	Business Address	Shares Owned
George W. Karpus	President, CEO, and Chairman of the Board	183 Sully’s Trail, Pittsford, New York 14534	See Above
Kathleen Finnerty Crane	Chief Financial Officer and Chief Compliance Officer	183 Sully’s Trail, Pittsford, New York 14534	0 Shares
Dana R. Consler	Executive Vice President	183 Sully’s Trail, Pittsford, New York 14534	640 Shares
Thomas M. Duffy	Vice President	183 Sully’s Trail, Pittsford, New York 14534	0 Shares
Sharon L. Thornton	Senior Director of Investments	183 Sully’s Trail, Pittsford, New York 14534	0 Shares
Daniel L. Lippincott	Sr. Tax-Sensitive Manager and Director of Investment Personnel	183 Sully’s Trail, Pittsford, New York 14534	0 Shares

 

 

 

Nature of the Transaction

Securities Purchased/(Sold)

Price Per Share($)

Date of Purchase / Sale

Purchase of Common Stock	6,890	$7.85	1/30/2017
Purchase of Common Stock	5,434	$7.86	1/31/2017
Purchase of Common Stock	5,585	$7.86	2/1/2017
Purchase of Common Stock	3,394	$7.87	2/2/2017
Sale of Common Stock	(1,200)	$7.84	2/6/2017
Sale of Common Stock	(625)	$7.83	2/8/2017
Purchase of Common Stock	3,139	$7.95	2/21/2017
Purchase of Common Stock	2,100	$8.06	2/22/2017
Purchase of Common Stock	3,803	$8.09	2/23/2017
Purchase of Common Stock	23,000	$8.09	2/24/2017
Sale of Common Stock	(9,296)	$8.09	2/27/2017
Purchase of Common Stock	1,600	$8.05	2/28/2017
Purchase of Common Stock	1,868	$8.17	3/1/2017
Purchase of Common Stock	6,296	$8.17	3/6/2017
Purchase of Common Stock	91,983	$8.18	3/9/2017
Purchase of Common Stock	9,255	$8.07	3/10/2017
Purchase of Common Stock	5,795	$7.95	3/16/2017
Sale of Common Stock	(2,635)	$7.96	3/17/2017
Purchase of Common Stock	1,482	$7.93	3/20/2017
Purchase of Common Stock	3,887	$7.89	3/21/2017
Sale of Common Stock	(2,960)	$7.87	3/22/2017
Purchase of Common Stock	5,022	$7.91	3/23/2017
Purchase of Common Stock	27,417	$7.89	3/24/2017
Purchase of Common Stock	500	$7.92	3/27/2017
Purchase of Common Stock	17,961	$7.97	3/28/2017
Purchase of Common Stock	12,180	$7.97	3/29/2017
Purchase of Common Stock	30,700	$8.00	3/30/2017

This letter shall serve as notice to the Madison Covered Call & Equity Strategy Fund ("MCN" or the "Fund"), as to Karpus Management, Inc.'s ("Karpus") timely submittal of a shareholder proposal pursuant to Rule 14a-8 of the Securities Exchange Act of 1934 for presentation to MCN shareholders at the Fund's next annual shareholders' meeting anticipated to be held in September 2017, or any postponement or adjournment thereof (the "Meeting"). Karpus' binding 14a-8 shareholder proposal (the "Proposal") is as follows: BE IT RESOLVED, that the Investment Advisory Agreement between the Madison Covered Call & Equity Strategy Fund ("MCN" or the "Fund") and Madison Asset Management, LLC ("MAM" or the "Adviser") shall be terminated. Supporting Statement MAM has been the Fund's Adviser since inception. MCN is one of two closed-end funds that is advised by MAM. In a closed-end fund, an investment adviser's job is to manage a Fund's assets and a Board's job is to manage the investment adviser, a fund's discount, and act in all shareholders' interests. With respect to MAM's performance as the Adviser of MCN, the Fund's net asset value has underperformed its stated benchmark over the last 3, 7 and 10 year time periods ending 12/31/2016, while only slightly outperforming over the 5 year period. On top of this, the Fund has also underperformed the broader stock market as a whole, as measured by the S&P 500 Index over the last 1, 3, 5, 7 & 10 year time periods (Source: Bloomberg Finance, L.P.). The Fund is likely to come up with a litany of arguments against our proposal but the simple fact of the matter is that the current manager has not been able to provide attractive performance for the Fund and the Adviser's history of shareholder relations can be best described as unresponsive and manager-centered (as opposed to open and shareholder centered). It is our belief that the Manager has been given ample time to prove its value to the Fund's shareholders. Based on the foregoing, we believe it has fallen short of being able to do so. It is clear that the time for change is now! If you agree and believe the Fund should terminate its Investment Advisory Agreement with Madison Asset Management, LLC to provide the opportunity to replace them with a manager more focused on shareholder value, please vote FOR this Proposal. If approved, the Board cannot choose whether to implement this Proposal. END OF PROPOSAL As is required by Rule 14a-8, attached as Exhibits 1 and 2 are letters from U. S. Bank N.A. and the "record" holder of the referenced shares, verifying that the referenced shares were continuously and beneficially owned, and had a market value of $2,000 or more, for at least a one year period prior to the date of the submittal of the above Proposal. Karpus intends to hold the shares referenced through the date of the Meeting. Please advise us immediately if this notice is deficient in any way or if any additional information is required so that Karpus may promptly provide it in order to cure any deficiency.

cc: Lisa R. Lange, Chief Legal Officer & Chief Compliance Officer

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Exhibit 1
U.S. Bank N.A. Letter

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Exhibit 2
Cede & Co. Letter

 

In accordance with Rule 13d-1(k)(1)(iii) under the Securities Exchange Act of 1934, as amended, the persons named below agree to the joint filing on behalf of each of them of a Statement on Schedule 13D (including additional amendments thereto), dated the date hereof, with respect to the shares of Common Stock of the Madison Covered Call & Equity Strategy Fund. This Joint Filing Agreement shall be filed as an Exhibit to such statement. February 8, 2017