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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-21582
Madison Covered Call and Equity Strategy Fund
(Exact name of registrant as specified in charter)
550 Science Drive, Madison, WI 53711
(Address of principal executive offices)(Zip code)
Pamela M. Krill
Madison Asset Management, LLC
550 Science Drive
Madison, WI 53711
(Name and address of agent for service)
Registrant's telephone number, including area code: 608-274-0300
Date of fiscal year end: December 31
Date of reporting period: March 31, 2014
Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (ss 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of
44 U.S.C. s 3507.
Item 1. Schedule of Investments.
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| | |
Madison Funds | March 31, 2014 |
|
Madison Covered Call & Equity Strategy Fund Portfolio of Investments (unaudited) |
|
| | | | | | |
| Shares | Value (Note 1) |
COMMON STOCKS - 77.1% | | |
Consumer Discretionary - 21.2% | | |
Amazon.com Inc. * (A) | 17,000 |
|
| $5,720,840 |
|
CBS Corp., Class B (A) | 51,000 |
| 3,151,800 |
|
DIRECTV * (A) | 85,500 |
| 6,533,910 |
|
Discovery Communications Inc., Class C * | 64,000 |
| 4,931,840 |
|
Home Depot Inc./The (A) | 41,000 |
| 3,244,330 |
|
Lululemon Athletica Inc. * (A) | 60,000 |
| 3,155,400 |
|
Panera Bread Co., Class A * (A) | 11,000 |
| 1,941,170 |
|
priceline.com Inc. * | 1,800 |
| 2,145,402 |
|
Ross Stores Inc. (A) | 56,000 |
| 4,006,800 |
|
Starbucks Corp. (A) | 50,000 |
| 3,669,000 |
|
| | 38,500,492 |
|
Consumer Staples - 5.2% | | |
Costco Wholesale Corp. (A) | 50,000 |
| 5,584,000 |
|
CVS Caremark Corp. (A) | 52,000 |
| 3,892,720 |
|
| | 9,476,720 |
|
Energy - 4.1% | | |
Apache Corp. (A) | 42,500 |
| 3,525,375 |
|
Petroleo Brasileiro S.A., ADR (A) | 60,000 |
| 789,000 |
|
Schlumberger Ltd. (A) | 32,000 |
| 3,120,000 |
|
| | 7,434,375 |
|
Financials - 1.6% | | |
Morgan Stanley (A) | 90,000 |
| 2,805,300 |
|
| | |
Health Care - 8.1% | | |
Baxter International Inc. (A) | 59,000 |
| 4,341,220 |
|
Celgene Corp. * (A) | 18,000 |
| 2,512,800 |
|
Gilead Sciences Inc. * (A) | 30,000 |
| 2,125,800 |
|
Teva Pharmaceutical Industries Ltd., ADR (A) | 60,000 |
| 3,170,400 |
|
Varian Medical Systems Inc. * (A) | 29,200 |
| 2,452,508 |
|
| | 14,602,728 |
|
Industrials - 12.6% | | |
C.H. Robinson Worldwide Inc. (A) | 45,000 |
| 2,357,550 |
|
Expeditors International of Washington Inc. (A) | 90,000 |
| 3,566,700 |
|
FedEx Corp. (A) | 27,000 |
| 3,579,120 |
|
Jacobs Engineering Group Inc. * (A) | 60,000 |
| 3,810,000 |
|
Rockwell Collins Inc. (A) | 36,500 |
| 2,907,955 |
|
Stericycle Inc. * (A) | 24,000 |
| 2,726,880 |
|
United Technologies Corp. (A) | 33,000 |
| 3,855,720 |
|
| | 22,803,925 |
|
Information Technology - 18.4% | | |
Accenture PLC, Class A (A) | 40,000 |
| 3,188,800 |
|
Altera Corp. (A) | 60,000 |
| 2,174,400 |
|
Apple Inc. (A) | 10,000 |
| 5,367,400 |
|
Broadcom Corp., Class A (A) | 80,000 |
| 2,518,400 |
|
eBay Inc. * (A) | 74,000 |
| 4,087,760 |
|
EMC Corp. (A) | 116,500 |
| 3,193,265 |
|
Linear Technology Corp. (A) | 36,000 |
| 1,752,840 |
|
Microsoft Corp. (A) | 85,000 |
| 3,484,150 |
|
|
|
See accompanying Notes to Portfolios of Investments. |
2
|
| | |
Madison Funds | March 31, 2014 |
|
Madison Covered Call & Equity Strategy Fund Portfolio of Investments (unaudited) |
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| | | | | | |
Nuance Communications Inc. * (A) | 99,000 |
| 1,699,830 |
|
Oracle Corp. (A) | 50,000 |
| 2,045,500 |
|
QUALCOMM Inc. (A) | 49,000 |
| 3,864,140 |
|
| | 33,376,485 |
|
Materials - 4.6% | | |
Freeport-McMoRan Copper & Gold Inc. (A) | 50,000 |
| 1,653,500 |
|
Monsanto Co. (A) | 37,000 |
| 4,209,490 |
|
Mosaic Co./The (A) | 49,800 |
| 2,490,000 |
|
| | 8,352,990 |
|
Telecommunication Services - 1.3% | | |
Verizon Communications Inc. (A) | 50,000 |
| 2,378,500 |
|
Total Common Stocks
( Cost $134,808,604 ) | | 139,731,515 |
|
INVESTMENT COMPANIES - 6.1% | | |
Powershares QQQ Trust Series 1 (A) | 61,000 |
| 5,348,480 |
|
SPDR S&P 500 ETF Trust (A) | 30,500 |
| 5,704,720 |
|
Total Investment Companies
( Cost $11,200,353 ) | | 11,053,200 |
|
| Par Value | |
U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 5.5% | | |
U.S. Treasury Bill (B) (C) - 5.5% | | |
0.056%, 5/8/14 |
| $10,000,000 |
| 9,999,430 |
|
Total U.S. Government and Agency Obligations
( Cost $9,999,430 ) | | 9,999,430 |
|
| Shares | |
SHORT-TERM INVESTMENTS - 17.2% | | |
State Street Institutional U.S. Government Money Market Fund | 31,088,858 |
| 31,088,858 |
|
Total Short-Term Investments
( Cost $31,088,858 ) | | 31,088,858 |
|
TOTAL INVESTMENTS - 105.9% ( Cost $187,097,245 ) | | 191,873,003 |
|
NET OTHER ASSETS AND LIABILITIES - (3.6%) | | (6,408,665) |
|
TOTAL CALL & PUT OPTIONS WRITTEN - (2.3%) | | (4,196,523) |
|
TOTAL NET ASSETS - 100.0% | |
| $181,267,815 |
|
|
| |
* | Non-income producing. |
(A) | All or a portion of these securities' positions represent covers (directly or through conversion rights) for outstanding options written. |
(B) | All or a portion of these securities are segregated as collateral for put options written. As of March 31, 2014, the total amount segregated was $9,999,430. |
(C) | Rate noted represents annualized yield at time of purchase. |
ADR | American Depositary Receipt |
ETF | Exchange Traded Fund |
PLC | Public Limited Company |
|
|
See accompanying Notes to Portfolios of Investments. |
3
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Madison Funds | March 31, 2014 |
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Madison Covered Call & Equity Strategy Fund Portfolio of Investments (unaudited) |
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| | | | |
Call Options Written | Contracts
(100 shares
per contract) | Expiration Date | Strike
Price | Value
(Note 1) |
Accenture PLC, Class A | 200 | May 2014 | $80.00 | $28,000 |
Altera Corp. | 600 | June 2014 | 35.00 | 136,500 |
Amazon.com Inc. | 90 | April 2014 | 360.00 | 14,130 |
Amazon.com Inc. | 80 | May 2014 | 380.00 | 30,800 |
Apache Corp. | 225 | April 2014 | 85.00 | 12,150 |
Apple Inc. | 50 | April 2014 | 525.00 | 77,250 |
Apple Inc. | 50 | May 2014 | 530.00 | 105,000 |
Baxter International Inc. | 300 | May 2014 | 70.00 | 127,500 |
Baxter International Inc. | 290 | August 2014 | 75.00 | 64,815 |
Broadcom Corp., Class A | 400 | May 2014 | 31.00 | 58,400 |
Broadcom Corp., Class A | 400 | May 2014 | 32.00 | 38,400 |
C.H. Robinson Worldwide Inc. | 200 | May 2014 | 57.50 | 6,000 |
CBS Corp., Class B | 310 | June 2014 | 60.00 | 124,000 |
Costco Wholesale Corp. | 250 | April 2014 | 115.00 | 6,875 |
CVS Caremark Corp. | 520 | May 2014 | 70.00 | 271,700 |
DIRECTV | 230 | May 2014 | 77.50 | 61,410 |
DIRECTV | 425 | June 2014 | 75.00 | 213,563 |
eBay Inc. | 500 | April 2014 | 55.00 | 59,000 |
EMC Corp. | 600 | May 2014 | 27.00 | 65,400 |
EMC Corp. | 565 | May 2014 | 28.00 | 33,900 |
Expeditors International of Washington Inc. | 450 | May 2014 | 41.00 | 36,000 |
FedEx Corp. | 200 | April 2014 | 140.00 | 3,600 |
FedEx Corp. | 70 | July 2014 | 140.00 | 20,650 |
Freeport-McMoRan Copper & Gold Inc. | 500 | May 2014 | 34.00 | 36,250 |
Home Depot Inc./The | 200 | May 2014 | 80.00 | 26,100 |
Home Depot Inc/The | 210 | May 2014 | 82.50 | 10,080 |
Jacobs Engineering Group Inc. | 150 | April 2014 | 60.00 | 57,000 |
Jacobs Engineering Group Inc. | 300 | April 2014 | 65.00 | 13,500 |
Linear Technology Corp. | 180 | April 2014 | 47.00 | 40,050 |
Linear Technology Corp. | 180 | May 2014 | 47.00 | 44,550 |
Lululemon Athletica Inc. | 300 | April 2014 | 55.00 | 24,300 |
Microsoft Corp. | 400 | April 2014 | 37.00 | 163,000 |
Microsoft Corp. | 450 | May 2014 | 37.00 | 190,125 |
Monsanto Co. | 100 | April 2014 | 110.00 | 44,000 |
Monsanto Co. | 270 | April 2014 | 115.00 | 42,255 |
Morgan Stanley | 400 | April 2014 | 31.00 | 33,800 |
Mosaic Co./The | 250 | April 2014 | 50.00 | 22,125 |
Nuance Communications Inc. | 500 | May 2014 | 18.00 | 31,250 |
Oracle Corp. | 170 | April 2014 | 38.00 | 51,850 |
Oracle Corp. | 330 | June 2014 | 38.00 | 117,150 |
Panera Bread Co. | 110 | May 2014 | 175.00 | 90,200 |
Powershares QQQ Trust Series 1 | 610 | April 2014 | 90.00 | 19,825 |
QUALCOMM Inc. | 490 | April 2014 | 75.00 | 196,000 |
Rockwell Collins Inc. | 165 | April 2014 | 75.00 | 74,250 |
Rockwell Collins Inc. | 200 | April 2014 | 80.00 | 26,500 |
Ross Stores Inc. | 280 | May 2014 | 72.50 | 41,300 |
Ross Stores Inc. | 280 | August 2014 | 72.50 | 88,200 |
Schlumberger Ltd. | 232 | May 2014 | 92.50 | 139,780 |
Schlumberger Ltd. | 88 | May 2014 | 95.00 | 36,300 |
SPDR S&P 500 ETF Trust | 305 | May 2014 | 189.00 | 63,592 |
Starbucks Corp. | 250 | April 2014 | 75.00 | 16,625 |
Starbucks Corp. | 250 | May 2014 | 75.00 | 43,500 |
Stericycle Inc. | 120 | May 2014 | 115.00 | 23,400 |
Teva Pharmaceutical Industries Ltd. | 300 | May 2014 | 52.50 | 67,350 |
Teva Pharmaceutical Industries Ltd. | 300 | June 2014 | 45.00 | 248,250 |
United Technologies Corp. | 260 | May 2014 | 115.00 | 94,900 |
|
|
See accompanying Notes to Portfolios of Investments. |
4
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| | |
Madison Funds | March 31, 2014 |
|
Madison Covered Call & Equity Strategy Fund Portfolio of Investments (unaudited) |
|
| | | | |
United Technologies Corp. | 70 | May 2014 | 120.00 | 8,015 |
Varian Medical Systems Inc. | 180 | May 2014 | 80.00 | 97,200 |
Varian Medical Systems Inc. | 112 | May 2014 | 85.00 | 24,920 |
Verizon Communications Inc. | 500 | May 2014 | 47.00 | 58,000 |
Total Call Options Written ( Premiums received $3,623,707 ) | | | | $4,000,535 |
Put Options Written | | | | |
Celgene Corp. | 135 | April 2014 | 140.00 | 55,013 |
Gilead Sciences Inc. | 250 | May 2014 | 70.00 | 81,875 |
Petroleo Brasileiro S.A. | 1,500 | May 2014 | 11.00 | 24,000 |
Starbucks Corp. | 150 | May 2014 | 70.00 | 18,975 |
Verizon Communications Inc. | 375 | May 2014 | 45.00 | 16,125 |
Total Put Options Written ( Premiums received $387,141 ) | | | | $195,988 |
Total Value of Options Written ( Premiums received $4,010,848 ) | | | | $4,196,523 |
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|
See accompanying Notes to Portfolios of Investments. |
5
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Madison Funds | March 31, 2014 |
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1. Portfolio Valuation: Securities traded on a national securities exchange are valued at their closing sale price, except for securities traded on NASDAQ, which are valued at the NASDAQ official closing price ("NOCP"), and options which are valued at the mean between best bid and best ask price across all option exchanges. Debt securities having maturities of 60 days or less are valued at amortized cost, which approximates market value. Debt securities having longer maturities, are valued on the basis of last available bid prices or current market quotations provided by dealers or pricing services approved by the Fund. Mutual funds are valued at the Net Asset Value. Securities for which market quotations are not readily available are valued at their fair value as determined in good faith under procedures approved by the Board of Trustees.
At times, the Fund maintains cash balances at financial institutions in excess of federally insured limits. The Fund monitors this credit risk and host not experienced any losses related to this risk.
2. Fair Value Measurements: The Fund has adopted Financial Accounting Standards Board ("FASB") applicable guidance on fair value measurements. Fair value is defined as the price that each fund would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. A three-tier hierarchy is used to maximize the use of observable market data "inputs" minimize the use of unobservable "inputs" and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk (for example, the risk inherent in a particular valuation technique used to measure fair value including such a pricing model and/or the risk inherent in the inputs of the valuation technique). Inputs may be observable or unobservable.
Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available under the circumstances. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below:
| |
· | Level 1 - unadjusted quoted prices in active markets for identical investments |
| |
· | Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rate volatilities, prepayment speeds, credit risk, benchmark yields, transactions, bids, offers, new issues, spreads, and other relationships observed in the markets among comparable securities, underlying equity of the issuer; and proprietary pricing models such as yield measures calculated using factors such as cash flows, financial or collateral performance, and other reference data, etc.) |
| |
· | Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments) |
The valuation techniques used by the Fund to measure fair value for the period ended March 31, 2014 maximized the use of observable inputs and minimized the use of unobservable inputs.
There were no transfers between classification levels during the period ended March 31, 2014. As of and during the period ended March 31, 2014, the Fund did not hold securities deemed as a Level 3.
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| | |
Madison Funds | March 31, 2014 |
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|
The following is a summary of the inputs used as of March 31, 2014, in valuing the Fund's investments carried at fair value (please see the Portfolio of Investments for a listing of all securities within each category):
|
| | | | | | | | | | | | | |
Description | Quoted Prices in Active Markets for Identical Investments | | Significant Other Observable Inputs | | Significant Unobservable Inputs | | Value at |
(Level 1) | | (Level 2) | | (Level 3) | | 3/31/14 |
Assets: | | | | | | | |
Common Stocks |
| $139,731,515 |
| | $ - |
| | $- | |
| $139,731,515 |
|
Investment Companies | 11,053,200 |
| | - |
| | - | | 11,053,200 |
|
U.S. Government and Agency Obligations | - |
| | 9,999,430 |
| | - | | 9,999,430 |
|
Short-Term Investments | 31,088,858 |
| | - |
| | - | | 31,088,858 |
|
|
| $181,873,573 |
| |
| $9,999,430 |
| | - | |
| $191,873,003 |
|
Liabilities: | | | | | | | |
Options Written |
| $4,196,523 |
| | $- |
| | $- | |
| $4,196,523 |
|
Derivatives: The FASB issued guidance intended to enhance financial statement disclosure for derivative instruments and hedging activities and enable investors to understand: a) how and why a Fund used derivative investments, b) how derivative instruments and related hedge fund items are accounted for, and c) how derivative instruments and related hedge fund items affect a Fund's financial position, results of operations and cash flows.
The following table presents the types of derivatives in the Fund and their effect:
|
| | | | | | |
| | Derivatives not accounted for as hedging instruments | Asset Derivatives
Fair Value | Derivatives not accounted for as hedging instruments | Liability Derivatives
Fair Value |
| |
| | Equity contracts | $ - | Options Written |
| $4,196,523 |
|
3. Discussion of Risks: Please see the Fund’s prospectus for a complete discussion of risks associated with investing in the fund.
Equity Risk. The value of the securities held by the Fund may decline due to general market and economic conditions, perceptions regarding the industries in which the issuers of securities held by the Fund participate, or factors relating to specific companies in which the Fund invests.
Option Risk. There are several risks associated with transactions in options on securities. For example, there are significant differences between the securities and options markets that could result in an imperfect correlation between these markets, causing a given transaction not to achieve its objectives. A decision as to whether, when and how to use options involves the exercise of skill and judgment, and even a well-conceived transaction may be unsuccessful to some degree because of market behavior or unexpected events.
As the writer of a covered call option, the Fund forgoes, during the option’s life, the opportunity to profit from increases in the market value of the security covering the call option above the sum of the premium and the strike price of the call, but retains the risk of loss should the price of the underlying security decline. The writer of an option has no control over the time when it may be required to fulfill its obligation as a writer of the option. Once an option writer has received an exercise notice, it cannot effect a closing purchase transaction in order to terminate its obligation under the option and must deliver the underlying security at the exercise price.
When the Fund writes covered put options, it bears the risk of loss if the value of the underlying stock declines below the exercise price. If the option is exercised, the Fund could incur a loss if it is required to purchase the stock underlying the put option at a price greater than the market price of the stock at the time of exercise. While the Fund’s potential gain in writing a covered put option is limited to the interest earned on the liquid assets securing the put option plus the premium received from the purchaser of the put option, the Fund risks a loss equal to the entire value of the stock.
Foreign Investment Risk. Investing in non-U.S. issuers may involve unique risks such as currency, political, and economic risks, as well as lower market liquidity, generally greater market volatility and less complete financial information than for U.S. issuers.
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Madison Funds | March 31, 2014 |
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Mid Cap Company Risk. Mid-cap companies often are newer or less established companies than larger companies. Investments in mid-cap companies carry additional risks because earnings of these companies tend to be less predictable; they often have limited product lines, markets, distribution channels or financial resources; and the management of such companies may be dependent upon one or a few key people. The market movements of equity securities of mid-cap companies may be more abrupt or erratic than the market movements of equity securities of larger, more established companies or the stock market in general.
Industry Concentration Risk. To the extent that the Fund makes substantial investments in a single industry, the Fund will be more susceptible to adverse economic or regulatory occurrences affecting those sectors.
Fund Distribution Risk. In order to make regular quarterly distributions on its common shares, the Fund may have to sell a portion of its investment portfolio at a time when independent investment judgment may not dictate such action. In addition, the Fund’s ability to make distributions more frequently than annually from any net realized capital gains by the Fund is subject to the Fund obtaining exemptive relief from the Securities and Exchange Commission, which cannot be assured. To the extent the total quarterly distributions for a year exceed the Fund’s net investment company income and net realized capital gain for that year, the excess will generally constitute a return of the Fund’s capital to its common shareholders. Such return of capital distributions generally are tax-free up to the amount of a common shareholder’s tax basis in the common shares (generally, the amount paid for the common shares). In addition, such excess distributions will decrease the Fund’s total assets and may increase the Fund’s expense ratio.
Financial Leverage Risk. The Fund is authorized to utilize leverage through the issuance of preferred shares and/or the Fund may borrow or issue debt securities for financial leveraging purposes and for temporary purposes such as settlement of transactions. Although the use of any financial leverage by the Fund may create an opportunity for increased net income, gains and capital appreciation for common shares, it also results in additional risks and can magnify the effect of any losses. If the income and gains earned on securities purchased with financial leverage proceeds are greater than the cost of financial leverage, the Fund’s return will be greater than if financial leverage had not been used. Conversely, if the income or gain from the securities purchased with such proceeds does not cover the cost of financial leverage, the return to the Fund will be less than if financial leverage had not been used. Financial leverage also increases the likelihood of greater volatility of net asset value and market price of and dividends on the common shares than a comparable portfolio without leverage.
Recent Market Developments Risk. Global and domestic financial markets have experienced periods of unprecedented turmoil. Recently, markets have witnessed more stabilized economic activity as expectations for an economic recovery increased. However, risks to a robust resumption of growth persist. Continuing uncertainty as to the status of the euro and the European Monetary Union has created significant volatility in currency and financial markets generally. A return to unfavorable economic conditions or sustained economic slowdown could adversely impact the Fund’s portfolio. Financial market conditions, as well as various social and political tensions in the United States and around the world, have contributed to increased market volatility and may have long-term effects on the United States and worldwide financial markets and cause further economic uncertainties or deterioration in the United States and worldwide. The Fund‘s Investment Adviser does not know how long the financial markets will continue to be affected by these events and cannot predict the effects of these or similar events in the future on the United States and global economies and securities markets.
Additional Risks. While investments in securities have been keystones in wealth building and management, at times these investments have produced surprises. Those who enjoyed growth and income of their investments generally were rewarded for the risks they took by investing in the markets. Although the Investment Adviser seeks to appropriately address and manage the risks identified and disclosed to you in connection with the management of the securities in the Fund, you should understand that the very nature of the securities markets includes the possibility that there may be additional risks of which we are not aware. We certainly seek to identify all applicable risks and then appropriately address the, take appropriate action to reasonably manage them and, of course, to make you aware of them so you can determine if they exceed your risk tolerance. Nevertheless, the often volatile nature of the securities markets and the global economy in which we work suggests that the risk of the unknown is something to consider in connection with an investment in securities. Unforeseen events could under certain circumstances produce a material loss of the value of some or all of the securities we manage for you in the Fund.
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Madison Funds | March 31, 2014 |
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Item 2. Controls and Procedures.
(a) The registrant's principal executive officer and principal financial officer determined that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the "Act") are effective, based on their evaluation of these controls and procedures within 90 days of the date of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the Act. There were no significant changes in the Trust's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation. The officers identified no significant deficiencies or material weaknesses.
(b) There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the registrant's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting.
Item 3. Exhibits.
Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Act.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.
Madison Covered Call and Equity Strategy Fund
By: (signature)
W. Richard Mason, Chief Compliance Officer
Date: May 23, 2014
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
By: (signature)
Katherine L. Frank, Principal Executive Officer
Date: May 23, 2014
By: (signature)
Greg Hoppe, Principal Financial Officer
Date: May 23, 2014