Contact Information: CONTACT: Press & Analyst Inquiries Madison Investment Advisors Larry Tabak: 550 Science Drive, Madison, WI 53711 608-274-0300
Madison Strategic Sector Premium Fund Declares Quarterly Dividend
| Source: Madison Investment Advisors
MADISON, WI--(Marketwire - June 12, 2008) - The Madison Strategic Sector Premium Fund (the
"Fund" or "MSP") (NYSE : MSP ) declares its quarterly dividend of $0.375 per
share payable June 30, 2008 to holders of record on June 25, 2008. This
represents an annual rate of $1.50 per share and an annualized distribution
rate of 9.58% based on the closing market price of $15.65 per share on May
30, 2008. The ex-dividend date will be June 23, 2008. The dividend is
reduced from its prior annual distribution rate of $1.80 per share.
The purpose for the change in dividend is to seek to provide a greater
balance between income production (dividends) and the growth of the Fund's
total asset value, which is reflected in the share price. The Fund's
management believes that, over a period of years, maintaining and growing
Fund value will benefit investors because an increase in the value of the
Fund has the potential to offer expanded option writing. This, in turn, can
help sustain or increase the Fund's income and provide potential for future
dividend increases.
The following are comments from the Fund's primary investment manager and
President of Madison Asset Management, LLC, Frank Burgess:
"The Fund's strategy of owning high-quality stocks with consistent growth
rates, along with its covered call option writing program is designed to
achieve risk-adjusted returns and regular income. We believe that paying an
unsustainably high level of dividends is not in the Fund's or shareholders'
interest.
"Very few investment strategies reliably produce 11-12% annual returns
consistently over a period of years. When virtually all returns are paid in
dividends, there is little left to achieve a fund's objective of growth.
Some growth is needed to help protect against future broad stock market
declines in order to maintain assets sizeable enough to adequately produce
solid dividends. We believe MSP will thus be 'ahead of the game' by being
better positioned to produce returns sufficient to withstand future market
declines as well as pay meaningful dividends. This forward-looking decision
is made proactively, which is designed to allow us to react to future
market pressures from a position of strength."
Certain statements in this release are forward-looking statements. The
Fund's actual results may differ from current expectations due to numerous
factors, including but not limited to changes in the equity and options
markets, economic and political conditions and changes to the portfolio's
value.
The Fund is managed by Madison Asset Management, LLC, located at 550
Science Drive, Madison, Wis.