MADISON, WI -- (MARKET WIRE) -- January 12, 2007 -- Effective January 2007, the Madison Strategic
Sector Premium Fund (
NYSE:
MSP) has adopted a quarterly dividend payment
plan. The Fund plans on declaring its first quarterly dividend in March
2007. During 2006, the Fund paid a monthly dividend of 15 cents per
share. Most important, the Fund has no plans to reduce or change its
annual dividend at this time.
Message from Portfolio Manager Frank Burgess:
When we launched Madison Strategic Sector Premium Fund (MSP) in April of
2005, our goal was to provide investors with an income-generating equity
strategy that could provide strong risk-moderated returns. We've been
pleased with the results, which have been solid total returns and income
that matched or exceeded our projections.
Our Board has given considerable attention to the frequency of dividend
distributions. In addition to providing operational efficiencies, a shift
to quarterly payments allows greater flexibility in the fund's use of
assets, and allows for the potential of shifting more of the annual
distribution from short-term gains to tax-advantaged long-term gains. As a
fellow shareholder, I personally favor any efforts to improve the tax
treatment of the dividends!
Performance for 2006. We are pleased to report a successful year. Our net
asset value per share enjoyed a total investment return of 11.61%. Our
stock price posted a total return of 11.30% and traded at a slight premium
to its NAV at the close of business for 2006, as it did at the outset of
the year. And, of course, the Fund paid $1.80 per share in dividends, a
yield of 8.87% based on the share price at the beginning of the year. The
Fund's management is most encouraged about the outlook for 2007.
We believe MSP's option strategy has proved its mettle over the past 19
months, and that going forward, it can continue to be an innovative and
effective means of helping investors meet their financial goals.
Sincerely,
Frank Burgess
President
Madison Investment Advisors, Inc.
Certain statements in this release are forward-looking statements. The
Fund's actual results may differ from current expectations or projections
due to numerous factors, including but not limited to changes in the equity
markets, changes in the portfolio's value, economic and political
conditions and other risks generally discussed in the Fund's filings with
the SEC. Neither the Fund nor Madison undertakes any obligation to publicly
update or revise any forward-looking statements.
Contact Information: CONTACT:
Larry Tabak
Email Contact
550 Science Drive, Madison, WI 53711
608-216-9155