ck0001040612-20231031
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Prospectus
February 28,
2024 |
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| U.S.
BOND FUNDS: |
| U.S.
STOCK FUNDS: |
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Madison
High Quality Bond Fund
Class
Y - MIIBX Class
I - MIIRX
Madison
Core Bond Fund |
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Madison
Dividend Income Fund
Class
A - MADAX Class
I - MDMIX
Class
Y - BHBFX Class
R6 - MADRX |
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Class
A - MBOAX Class
I - MBOIX
Class
Y - MBOYX Class
R6 - MBORX |
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Madison
Investors Fund
Class
A - MNVAX Class
I - MIVIX
Class
Y - MINVX Class
R6 - MNVRX |
| Madison
Tax-Free Virginia Fund |
| Madison
Sustainable Equity Fund |
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Class
Y - GTVAX |
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Class
Y - MFSYX Class
I - MFSIX |
| Madison
Tax-Free National Fund |
| Madison
Mid Cap Fund |
| Class
Y - GTFHX |
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Class
A - MERAX Class
I - MDCIX
Class
Y - GTSGX Class
R6 - MMCRX |
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| ASSET
ALLOCATION FUNDS: |
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Madison
Small Cap Fund
Class
A - MASMX Class
I - MSCIX
Class
Y - BVAOX Class
R6 - MSCRX |
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Madison
Conservative Allocation Fund
Class
A - MCNAX Class
C - MCOCX |
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| COVERED
CALL STOCK FUND: |
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Madison
Moderate Allocation Fund
Class
A - MMDAX Class
C - MMDCX |
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Madison
Covered Call & Equity Income Fund
Class
A - MENAX Class
I - MENIX
Class
C - MENCX Class
R6 - MENRX
Class
Y - MENYX |
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Madison
Aggressive Allocation Fund
Class
A - MAGSX Class
C - MAACX |
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Madison
Diversified Income Fund
Class
A - MBLAX Class
C - MBLCX |
| INTERNATIONAL
STOCK FUND: |
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Madison
International Stock Fund
Class
A - MINAX Class
Y - MINYX |
__________________________________________________________________________________________________________________________
As
with all mutual funds, the Securities and Exchange Commission has not approved
or disapproved the shares in these funds, nor does the Commission guarantee the
accuracy or adequacy of the prospectus. Any statement to the contrary is a
criminal offense.
MADISON
FUNDS®
TABLE
OF CONTENTS
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| Madison
Sustainable Equity Fund |
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| Who
Can Invest in the Funds? |
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| Share
Class Availability |
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| Investment
Minimums |
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APPENDIX
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Please
note that an investment in any of these funds is not a deposit in a financial
institution and is neither insured nor endorsed in
any
way by any financial institution or government agency.
(This
page intentionally left blank.)
MADISON CONSERVATIVE
ALLOCATION FUND Fund Summary
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| Share
Class/Ticker: |
Class
A - MCNAX |
Class
C - MCOCX |
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Investment
Objective
The
Madison Conservative Allocation Fund (the "Fund") seeks income, capital
appreciation and relative stability of value.
Fees and
Expenses
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and example
below.
You
may qualify for Class A sales charge discounts if you and your immediate family
invest, or agree to invest in the future, at least $25,000 in Madison Funds.
More
information about these and other discounts is available from your financial
professional, in the “Sales Charges and Fees” section on page
65
of
the prospectus, in the “More About Purchasing and Selling Shares” section on
page
47
of the Funds' statement of additional information ("SAI") and in the sales
charge waiver appendix to this prospectus.
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Shareholder
Fees: (fees
paid directly from your investment) |
Class
A |
Class
C |
| Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
5.75% |
None |
| Maximum
Deferred Sales Charge (Load) (as a percentage of amount
redeemed) |
None |
1.00%¹ |
| Redemption
Fee Within 30 days of Purchase (as a percentage of amount
redeemed) |
None |
None |
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Annual
Fund Operating Expenses: (expenses
that you pay each year as a percentage of the value of your
investment) |
Class
A |
Class
C |
| Management
Fees |
0.20% |
0.20% |
| Distribution
and/or Service (Rule 12b-1) Fees |
0.25% |
1.00% |
| Other
Expenses |
0.26% |
0.26% |
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Acquired
Fund Fees and Expenses2 |
0.28% |
0.28% |
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Total
Annual Fund Operating Expenses3 |
0.99% |
1.74% |
1
The
CDSC is eliminated after 12 months following
purchase.
2
Fees
and expenses incurred indirectly by the Fund as a result of investment in shares
of one more underlying funds.
3
Total annual fund
operating expenses for the period ended October 31, 2023 do not match the
financial statements because the financial statements do not include acquired
fund fees and expenses.
Example:
The following example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The example assumes
you invest $10,000 in the Fund for the time periods indicated and then either redeem or
not redeem your shares at the end of the period. The example also assumes that
your investment has a 5% return each year and that the fund’s operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions, your costs would be:
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| Redemption |
No
Redemption |
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| A |
C |
| A |
C |
| 1
Year |
$670 |
$277 |
| $670 |
$177 |
| 3
Years |
872 |
548 |
| 872 |
548 |
| 5
Years |
1,091 |
944 |
| 1,091 |
944 |
| 10
Years |
1,718 |
2,052 |
| 1,718 |
2,052 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover may
indicate higher transaction costs and may result in higher taxes when fund
shares are held in a taxable account. These costs, which are not reflected in
total annual fund operating expenses or in the expense examples above, affect
the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio
turnover rate was 53% of the average value of its
portfolio.
Principal Investment
Strategies
The
Fund invests primarily in shares of other registered investment companies (the
“underlying funds”). The Fund will be diversified among a number of asset
classes and its allocation among underlying funds will be based on an asset
allocation model developed by Madison Asset Management, LLC (“Madison”), the
Fund’s investment adviser. Under normal circumstances, the fund’s total net
assets will be allocated among various asset classes and underlying funds,
including those whose shares trade on a stock exchange (exchange traded funds or
“ETFs”), with target allocations over time of approximately 35% equity
investments and 65% fixed income investments. Underlying funds in which the Fund
invests may include funds advised by Madison and/or its affiliates, including
other Madison Funds (the “affiliated underlying funds”). Generally, Madison will not invest more than 75% of the
Fund’s net assets, at the time of purchase, in affiliated underlying funds.
Although actual allocations may vary, as of October 31, 2023, the Fund’s
portfolio allocation as a percentage of net assets
was:
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Bond
Funds |
68.6 |
% |
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Foreign
Stock Funds |
4.9 |
% |
| - |
Short-Term
Investments |
2.2 |
% |
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Stock
Funds |
24.7 |
% |
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Net
Other Assets and Liabilities: |
-0.4 |
% |
With
regard to investments in debt securities, Madison’s bias is toward securities
with intermediate and short-term maturities. As of December 31, 2023, the
weighted average duration of the fund’s debt portfolio was
5.79
years.
Madison
may employ multiple analytical approaches to determine the appropriate asset
allocation for the Fund, including:
•Macroeconomic
analysis. This approach analyzes high frequency economic and market data across
the global markets in an effort to identify attractive investment opportunities
in countries, regions and/or asset classes.
•Fundamental
analysis. This approach reviews fundamental asset class valuation data to
determine the absolute and relative attractiveness of existing and potential
investment opportunities.
•Correlation
analysis. This approach considers the degree to which returns in different asset
classes do or do not move together, and the Fund’s aim to achieve a favorable
overall risk and return profile.
•Scenario
analysis. This approach analyzes historical and expected return data to model
how individual asset classes and combinations of asset classes would affect the
Fund under different economic and market conditions.
In
addition, Madison has a flexible mandate that permits the Fund, at the sole
discretion of Madison, to materially reduce equity risk exposures when and if
conditions are deemed to warrant such an action.
The
Fund’s investment strategy reflects Madison’s general “Participate and
Protect®”
investment philosophy. Madison’s expectation is that investors in the Fund
will participate in market appreciation during bull markets and experience
something less than full participation during bear markets compared with
investors in portfolios holding more speculative and volatile securities;
therefore, this investment philosophy is intended to represent a conservative
investment strategy. There is no assurance that Madison’s expectations regarding
this investment strategy will be realized.
Although the Fund expects to pursue its investment objective utilizing
its principal investment strategies regardless of market conditions, the Fund
may invest up to 100% in money market instruments. To the extent the Fund
engages in this temporary defensive position, the fund’s ability to achieve its
investment objective may be diminished.
Principal
Risks
The
Fund is a fund of funds, meaning that it invests primarily in the shares of
underlying funds, including ETFs. Thus, the Fund’s investment performance and
its ability to achieve its investment goal are directly related to the
performance of the underlying funds in which it invests. Each underlying fund’s
performance, in turn, depends on the particular securities in which that
underlying fund invests and the expenses of that underlying fund. Accordingly,
the Fund is subject to the risks of the underlying funds in direct proportion to
the allocation of its assets among the underlying funds.
The
specific risks of owning the Fund are set forth below. You could lose
money as a result of investing in the Fund. An investment in
the Fund is not a deposit of a bank and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government agency, entity or
person. The Fund’s share price and total return will
fluctuate. You should consider your own investment goals, time horizon and
risk tolerance before investing in the Fund.
Asset
Allocation Risk.
The Fund is subject to
asset
allocation risk, which is the risk that the selection of the underlying funds
and the allocation of the Fund’s assets among the various asset classes and
market segments will cause the Fund to underperform other funds with a similar
investment objective.
Interest
Rate Risk.
The Fund, through the underlying funds, is subject to interest rate
risk,
which is the risk that the value of your investment will fluctuate with changes
in interest rates. Typically, a rise in interest rates causes a decline in the
market value of income-bearing securities. When interest rates rise, bond prices
fall; generally, the longer a bond’s maturity, the more sensitive it is to this
risk.
Credit
and Prepayment/Extension Risk.
The Fund, through the underlying funds, is also subject to credit risk, which
is
the risk that issuers of debt securities may be unable to meet their
interest or principal payment obligations when due. There is also
prepayment/extension risk, which is the chance that a rise/fall in interest
rates will reduce/extend the life of a mortgage-backed security by
increasing/decreasing mortgage prepayments, typically reducing the underlying
fund’s return.
Non-Investment
Grade Security Risk.
The Fund, through the underlying funds, may invest in non-investment grade
securities (i.e.,
“junk”
bonds). Issuers of non-investment grade securities
are
typically in weak financial health and their ability to pay interest and
principal is uncertain. Compared to issuers of investment-grade bonds, they are
more likely to encounter financial difficulties and to be materially affected by
these difficulties when they do encounter them. “Junk” bond markets may react
strongly to adverse news about an issuer or the economy, or to the perception or
expectation of adverse news.
Equity
Risk.
The Fund, through the underlying funds, is subject to equity risk. Equity risk
is the risk that securities held by the Fund will fluctuate in value due to
general market or economic conditions, perceptions regarding the industries in
which the issuers of securities held by the Fund participate, and the
circumstances and performance of companies whose securities the Fund holds. In
addition, while broad market measures of common stocks have historically
generated higher average returns than fixed income securities, common stocks
have also experienced significantly more volatility in those
returns.
ETF
Risks.
The main risks of investing in ETFs are the same as investing in a portfolio of
equity securities comprising the index on which the ETF is based, although lack
of liquidity in an ETF could result in it being more volatile than the
securities comprising the index. Additionally, the market prices of ETFs will
fluctuate in accordance with both changes in the market value of their
underlying portfolio securities and due to supply and demand for the instruments
on the exchanges on which they are traded (which may result in their trading at
a discount or premium to their net asset values). Index-based ETF investments
may not replicate exactly the performance of their specific index because of
transaction costs and because of the temporary unavailability of certain
component securities of the index.
Foreign
Security Risk. Investments of underlying funds that invest in foreign securities
involve risks relating to currency fluctuations and to political, social and
economic developments abroad, as well as risks resulting from differences
between the regulations to which U.S. and foreign issuers and markets are
subject. These risks may be greater in emerging markets. The investment markets
of emerging countries are generally more volatile than markets of developed
countries with more mature economies.
Market
Risk.
While the majority of the Fund’s assets will typically be invested in underlying
funds that invest primarily in debt securities, to the extent that the Fund
invests in underlying funds that invest in equities, the Fund is subject to
market risk, which is the risk that the value of an investment may fluctuate in
response to stock market movements.
Performance
The following
bar chart and table provide some indication of the risks of investing in the
Fund. The bar chart shows how the Fund’s investment results have varied from
year to year. The table shows the Fund’s average annual total
returns for various periods compared to a broad market index, as well as a
custom index that reflects the Fund’s asset allocation targets. The
Fund’s past performance (before and after taxes) is not necessarily an
indication of its future performance. Updated performance
information current to the most recent month end is available at no cost by
visiting www.madisonfunds.com
or by calling 1-800-877-6089.
Calendar
Year Total Returns for Class A Shares
(Returns
do not reflect sales charges and would be lower if they
did.)
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| Highest/Lowest
quarter end results during this period were: |
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| Highest: |
2Q
2020 |
7.42% |
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| Lowest: |
2Q
2022 |
-7.84% |
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Average Annual Total Returns
For Periods Ended December 31, 2023
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| 1
Year |
5
Years |
10
Years |
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Class
A Shares –
Return Before Taxes |
1.72% |
2.07% |
2.57% |
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Return After
Taxes on Distributions |
0.80% |
0.77% |
1.24% |
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Return After
Taxes on Distributions and Sale of Fund
Shares |
1.08% |
1.32% |
1.67% |
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Class
C Shares –
Return
before Taxes |
6.13% |
2.51% |
2.41% |
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ICE
BofA U.S. Corporate, Government & Mortgage Index (reflects no deduction for
sales charges, account fees, expenses or
taxes) |
5.39% |
1.06% |
1.83% |
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Conservative
Allocation Fund Custom Index (reflects no deduction for
sales charges, account fees, expenses or
taxes) |
11.41% |
5.36% |
4.57% |
The
Conservative Allocation Fund Custom Index consists of 65% Bloomberg U.S.
Aggregate Bond Index, 24.5% Russell 3000®
Index and 10.5% MSCI ACWI ex-USA Index.
After-tax returns are
calculated using the highest historical individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown, and
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
only for Class A shares and will vary for other share classes.
Returns after taxes on
distributions and sale of Fund shares may be higher than other returns for the
same period due to the tax benefit of realizing a capital loss on the sale of
Fund shares.
Portfolio
Management
The
investment adviser to the Fund is Madison Asset Management, LLC. Patrick Ryan,
CFA (Head of Multi-Asset Solutions, Portfolio Manager) and Stuart Dybdahl, CFA
and CAIA (Vice President, Portfolio Manager/Analyst) co-manage the Fund. Mr.
Ryan has served in this capacity since January 2008 and Mr. Dybdahl has served
in this capacity since February 2023.
Purchase
and Sale of Fund Shares
The
minimum investment amount to establish an account in Class A and Class C shares
is normally $1,000 for non-retirement accounts and $500 for individual
retirement and education savings accounts, and the minimum to add to an account
is $50. For an account established with an automatic investment plan the minimum
is $50 per month to establish or add to an account.
The
Fund will waive the minimum investment requirements for certain employee benefit
plans and for certain financial intermediaries that submit orders on behalf of
their customers, although the intermediaries may impose their own minimum
investment requirements. The Fund may also reduce or waive the minimum
investment requirements under certain circumstances and on a case-by-case basis
if deemed to be in the best interest of the Fund.
You
may generally purchase, exchange or redeem shares of the Fund on any day the New
York Stock Exchange (NYSE) is open for business by written request (Madison
Funds, P.O. Box 219083, Kansas City, MO 64121-9083), by telephone
(1-800-877-6089), by contacting your financial professional, by wire (purchases
only) or, with respect to purchases and exchanges, online at
www.madisonfunds.com. Requests must be received in good order by the Fund or its
transfer agent prior to the close of regular trading of the NYSE in order to
receive that day's net asset value. Investors wishing to purchase or redeem
shares through a broker-dealer or other financial intermediary should contact
the broker-dealer or financial intermediary to learn how to place an
order.
Tax
Information
Dividends
and capital gains distributions you receive from the Fund are subject to federal
income taxes and may also be subject to state and local taxes, unless you are
tax-exempt or your account is tax-exempt or tax-deferred (in which case, such
distributions may be taxable upon withdrawal). Distributions from the Fund may
be taxed as ordinary income or long-term capital gains.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank or trust company), the Fund and the Fund’s
distributor or its affiliates may pay the intermediary for the sale of Fund
shares and related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your individual
financial adviser to recommend the Fund over another investment. Ask your
individual financial adviser or visit your financial intermediary’s website for
more information.
MADISON MODERATE
ALLOCATION FUND Fund Summary
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| Share
Class/Ticker: |
Class
A - MMDAX |
Class
C - MMDCX |
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Investment
Objective
The
Madison Moderate Allocation Fund (the "Fund") seeks capital appreciation, income
and moderated market risk.
Fees and
Expenses
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and example
below.
You may qualify for Class A sales charge
discounts if you and your immediate family invest, or agree to invest in the
future, at least $25,000 in Madison
Funds.
More
information about these and other discounts is available from your financial
professional, in the “Sales Charges and Fees” section on page
65
of
the prospectus, in the “More About Purchasing and Selling Shares” section on
page
47 of the Funds' statement of additional information ("SAI") and in
the sales charge waiver appendix to this prospectus.
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Shareholder
Fees: (fees
paid directly from your investment) |
Class
A |
Class
C |
| Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
5.75% |
None |
| Maximum
Deferred Sales Charge (Load) (as a percentage of amount
redeemed) |
None |
1.00%¹ |
| Redemption
Fee Within 30 days of Purchase (as a percentage of amount
redeemed) |
None |
None |
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Annual
Fund Operating Expenses:
(expenses
that you pay each year as a percentage of the value of your
investment) |
Class
A |
Class
C |
| Management
Fees |
0.20% |
0.20% |
| Distribution
and/or Service (Rule 12b-1) Fees |
0.25% |
1.00% |
| Other
Expenses |
0.25% |
0.25% |
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Acquired
Fund Fees and Expenses2 |
0.30% |
0.30% |
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Total
Annual Fund Operating Expenses3 |
1.00% |
1.75% |
1
The
CDSC is eliminated after 12 months following
purchase.
2
Fees
and expenses incurred indirectly by the Fund as a result of investment in shares
of one more underlying funds.
3
Total annual fund
operating expenses for the period ended October 31, 2023 do not match the
financial statements because the financial statements do not include acquired
fund fees and expenses.
Example:
The following example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The example assumes
you invest $10,000
in
the Fund for the time periods indicated and then either redeem or not redeem
your shares at the end of the period. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions, your costs would
be:
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| Redemption |
No
Redemption |
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| A |
C |
| A |
C |
| 1
Year |
$671 |
$278 |
| $671 |
$178 |
| 3
Years |
875 |
551 |
| 875 |
551 |
| 5
Years |
1,096 |
949 |
| 1,096 |
949 |
| 10
Years |
1,729 |
2,062 |
| 1,729 |
2,062 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover may
indicate higher transaction costs and may result in higher taxes when fund
shares are held in a taxable account. These costs, which are not reflected in
total annual fund operating expenses or in the expense examples above, affect
the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio
turnover rate was 67% of the average value of its
portfolio.
Principal Investment
Strategies
The
Fund invests primarily in shares of other registered investment companies (the
“underlying funds”). The Fund will be diversified among a number of asset
classes and its allocation among underlying funds will be based on an asset
allocation model developed by Madison Asset Management, LLC (“Madison”), the
Fund’s investment adviser. Under normal circumstances, the Fund’s total net
assets will be allocated among various asset classes and underlying funds,
including those whose shares trade on a stock exchange (exchange traded funds or
“ETFs”), with target allocations over time of approximately 60% equity
investments and 40% fixed income investments. Underlying funds in which the Fund
invests may include funds advised by Madison and/or its affiliates, including
other Madison Funds (the “affiliated underlying funds”). Generally, Madison will not invest more than 75% of the
Fund’s net assets, at the time of purchase, in affiliated underlying funds.
Although actual allocations may vary, as of October 31, 2023, the Fund’s
portfolio allocation as a percentage of net assets
was:
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Bond
Funds: |
46.3 |
% |
| - |
Foreign
Stock Funds: |
10.6 |
% |
| - |
Short-Term
Investments: |
8.6 |
% |
| - |
Stock
Funds: |
41.1 |
% |
| - |
Net
Other Assets and Liabilities: |
-6.6 |
% |
With
regard to investments in debt securities, Madison’s bias is toward securities
with intermediate and short-term maturities. As of December 31, 2023, the
weighted average duration of the Fund’s debt portfolio was
5.78
years.
Madison
may employ multiple analytical approaches to determine the appropriate asset
allocation for the Fund, including:
•Macroeconomic
analysis. This approach analyzes high frequency economic and market data across
the global markets in an effort to identify attractive investment opportunities
in countries, regions and/or asset classes.
•Fundamental
analysis. This approach reviews fundamental asset class valuation data to
determine the absolute and relative attractiveness of existing and potential
investment opportunities.
•Correlation
analysis. This approach considers the degree to which returns in different asset
classes do or do not move together, and the Fund’s aim to achieve a favorable
overall risk and return profile.
•Scenario
analysis. This approach analyzes historical and expected return data to model
how individual asset classes and combinations of asset classes would affect the
Fund under different economic and market conditions.
In
addition, Madison has a flexible mandate that permits the Fund, at the sole
discretion of Madison, to materially reduce equity risk exposures when and if
conditions are deemed to warrant such an action.
The
Fund’s investment strategy reflects Madison’s general “Participate and
Protect®”
investment philosophy. Madison’s expectation is that investors in the Fund
will participate in market appreciation during bull markets and experience
something less than full participation during bear markets compared with
investors in portfolios holding more speculative and volatile securities;
therefore, this investment philosophy is intended to represent a conservative
investment strategy. There is no assurance that Madison’s expectations regarding
this investment strategy will be realized.
Although
the Fund expects to pursue its investment objective utilizing its principal
investment strategies regardless of market conditions, the Fund may invest up to
100% in money market instruments. To the extent the Fund engages in this
temporary defensive position, the Fund’s ability to achieve its investment
objective may be diminished.
Principal Risks
The
Fund is a fund of funds, meaning that it invests primarily in the shares of
underlying funds, including ETFs. Thus, the Fund’s investment performance and
its ability to achieve its investment goal are directly related to the
performance of the underlying funds in which it invests. Each underlying Fund’s
performance, in turn, depends on the particular securities in which that
underlying fund invests and the expenses of that underlying fund. Accordingly,
the Fund is subject to the risks of the underlying funds in direct proportion to
the allocation of its assets among the underlying funds.
The
specific risks of owning the Fund are set forth below. You could lose
money as a result of investing in the Fund. An investment
in the Fund is not a deposit of a bank and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government agency, entity or
person. The Fund’s share price and total return will
fluctuate. You should consider your own investment goals, time horizon and
risk tolerance before investing in the Fund.
Asset
Allocation Risk. The Fund is subject to asset allocation risk, which is the risk
that the selection of the underlying funds and the allocation of the Fund’s
assets among the various asset classes and market segments will cause the Fund
to underperform other funds with a similar investment
objective.
Equity
Risk.
The Fund, through the underlying funds, is subject to equity risk. Equity risk
is the risk that securities held by the Fund will fluctuate in value due to
general market or economic conditions, perceptions regarding the industries in
which the issuers of securities held by the Fund participate, and the
circumstances and performance of companies whose securities the Fund holds. In
addition, while broad market measures of common stocks have historically
generated higher average returns than fixed income securities, common stocks
have also experienced significantly more volatility in those
returns.
Interest
Rate Risk.
The Fund, through the underlying funds, is subject to interest rate
risk,
which is the risk that the value of your investment will fluctuate with changes
in interest rates. Typically, a rise in interest rates causes a decline in the
market value of income-bearing securities. When interest rates rise, bond prices
fall; generally, the longer a bond’s maturity, the more sensitive it is to this
risk.
Credit
and Prepayment/Extension Risk.
The Fund, through the underlying funds, is also subject to credit risk, which
is
the risk that issuers of debt securities may be unable to meet their
interest or principal payment obligations when due. There is also
prepayment/extension risk, which is the chance that a rise/fall in interest
rates will reduce/extend the life of a mortgage-backed security by
increasing/decreasing mortgage prepayments, typically reducing the underlying
Fund’s return.
Non-Investment
Grade Security Risk.
The Fund, through the underlying funds, may invest in non-investment grade
securities (i.e.,
“junk”
bonds). Issuers of non-investment grade securities
are
typically in weak financial health and their ability to pay interest and
principal is uncertain. Compared to issuers of investment-grade bonds, they are
more likely to encounter financial difficulties and to be materially affected by
these difficulties when they do encounter them. “Junk” bond markets may react
strongly to adverse news about an issuer or the economy, or to the perception or
expectation of adverse news.
ETF
Risks.
The main risks of investing in ETFs are the same as investing in a portfolio of
equity securities comprising the index on which the ETF is based, although lack
of liquidity in an ETF could result in it being more volatile than the
securities comprising the index. Additionally, the market prices of ETFs will
fluctuate in accordance with both changes in the market value of their
underlying portfolio securities and due to supply and demand for the instruments
on the exchanges on which they are traded (which may result in their trading at
a discount or premium to their net asset values). Index-based ETF investments
may not replicate exactly the performance of their specific index because of
transaction costs and because of the temporary unavailability of certain
component securities of the index.
Foreign
Security Risk. Investments in foreign securities involve risks relating to
currency fluctuations and to political, social and economic developments abroad,
as well as risks resulting from differences between the regulations to which
U.S. and foreign issuers and markets are subject. These risks may be greater in
emerging markets. The investment markets of emerging countries are generally
more volatile than markets of developed countries with more mature
economies.
Market
Risk.
The Fund, through the underlying funds, is subject to market risk, which is the
risk that the value of an investment may fluctuate in response to stock market
movements. Certain of the underlying funds may invest in the equity securities
of smaller companies, which may fluctuate more in value and be more thinly
traded than the general market.
Performance
The following
bar chart and table provide some indication of the risks of investing in the
Fund. The bar chart shows how the Fund’s investment results have varied from
year to year. The table shows the Fund’s average annual total
returns for various periods compared to a broad market index, as well as a
custom index that reflects the Fund’s asset allocation targets. The
Fund’s past performance (before and after taxes) is not necessarily an
indication of its future performance. Updated performance
information current to the most recent month end is available at no cost by
visiting www.madisonfunds.com
or by calling 1-800-877-6089.
Calendar Year Total Returns for Class A Shares
(Returns do not reflect sales charges
and would be lower if they did.)
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| |
|
| Highest/Lowest
quarter end results during this period were: |
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|
| Highest: |
2Q
2020 |
9.82% |
|
| Lowest: |
2Q
2022 |
-10.33% |
|
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|
| |
Average
Annual Total Returns
For
Periods Ended December 31, 2023
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| |
|
| 1
Year |
5
Years |
10
Years |
|
Class
A Shares –
Return Before Taxes |
3.95% |
3.86% |
3.92% |
|
Return After
Taxes on Distributions |
3.19% |
2.43% |
2.39% |
| Return After
Taxes on Distributions and Sale of Fund Shares |
2.47% |
2.73% |
2.75% |
|
Class
C Shares –
Return
before Taxes |
8.44% |
4.29% |
3.75% |
|
S&P
500®
Index (reflects no deduction for
sales charges, account fees, expenses or
taxes) |
26.29% |
15.69% |
12.03% |
|
Moderate
Allocation Fund Custom Index (reflects no deduction for
sales charges, account fees, expenses or
taxes) |
15.72% |
8.29% |
6.44% |
The
Moderate Allocation Fund Custom Index consists of 42% Russell 3000® Index, 40% Bloomberg U.S. Aggregate Bond Index and 18% MSCI ACWI
ex-USA Index.
After-tax returns are
calculated using the highest historical individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown, and
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
only for Class A shares and will vary for other share classes.
Returns after taxes on
distributions and sale of Fund shares may be higher than other returns for the
same period due to the tax benefit of realizing a capital loss on the sale of
Fund shares.
Portfolio
Management
The
investment adviser to the Fund is Madison Asset Management, LLC. Patrick Ryan,
CFA (Head of Multi-Asset Solutions, Portfolio Manager) and Stuart Dybdahl, CFA
and CAIA (Vice President, Portfolio Manager/Analyst) co-manage the Fund. Mr.
Ryan has served in this capacity since January 2008 and Mr. Dybdahl has served
in this capacity since February 2023.
Purchase
and Sale of Fund Shares
The
minimum investment amount to establish an account in Class A and Class C shares
is normally $1,000 for non-retirement accounts and $500 for individual
retirement and education savings accounts, and the minimum to add to an account
is $50. For an account established with an automatic investment plan the minimum
is $50 per month to establish or add to an account.
The
Fund will waive the minimum investment requirements for certain employee benefit
plans and for certain financial intermediaries that submit orders on behalf of
their customers, although the intermediaries may impose their own minimum
investment requirements. The Fund may also reduce or waive the minimum
investment requirements under certain circumstances and on a case-by-case basis
if deemed to be in the best interest of the Fund.
You
may generally purchase, exchange or redeem shares of the Fund on any day the New
York Stock Exchange (NYSE) is open for business by written request (Madison
Funds, P.O. Box 219083, Kansas City, MO 64121-9083), by telephone
(1-800-877-6089), by contacting your financial professional, by wire (purchases
only) or, with respect to purchases and exchanges, online at
www.madisonfunds.com. Requests must be received in good order by the Fund or its
transfer agent prior to the close of regular trading of the NYSE in order to
receive that day's net asset value. Investors wishing to purchase or redeem
shares through a broker-dealer or other financial intermediary should contact
the broker-dealer or financial intermediary to learn how to place an
order.
Tax
Information
Dividends
and capital gains distributions you receive from the Fund are subject to federal
income taxes and may also be subject to state and local taxes, unless you are
tax-exempt or your account is tax-exempt or tax-deferred (in which case, such
distributions may be taxable upon withdrawal). Distributions from the Fund may
be taxed as ordinary income or long-term capital gains.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank or trust company), the Fund and the Fund’s
distributor or its affiliates may pay the intermediary for the sale of Fund
shares and related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your individual
financial adviser to recommend the Fund over another investment. Ask your
individual financial adviser or visit your financial intermediary’s website for
more information.
MADISON AGGRESSIVE
ALLOCATION FUND Fund Summary
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| Share
Class/Ticker: |
Class
A - MAGSX |
Class
C - MAACX |
| |
Investment
Objective
The
Madison Aggressive Allocation Fund (the "Fund") seeks capital
appreciation.
Fees and
Expenses
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and example
below.
You may qualify for Class A sales charge
discounts if you and your immediate family invest, or agree to invest in the
future, at least $25,000 in Madison
Funds.
More
information about these and other discounts is available from your financial
professional, in the “Sales Charges and Fees” section on page
65
of
the prospectus, in the “More About Purchasing and Selling Shares” section on
page
47 of the Funds' statement of additional information ("SAI") and in
the sales charge waiver appendix to this prospectus.
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| |
|
Shareholder
Fees: (fees
paid directly from your investment) |
Class
A |
Class
C |
| Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
5.75% |
None |
| Maximum
Deferred Sales Charge (Load) (as a percentage of amount
redeemed) |
None |
1.00%¹ |
| Redemption
Fee Within 30 days of Purchase (as a percentage of amount
redeemed) |
None |
None |
|
|
| |
|
Annual
Fund Operating Expenses:
(expenses
that you pay each year as a percentage of the value of your
investment) |
Class
A |
Class
C |
| Management
Fees |
0.20% |
0.20% |
| Distribution
and/or Service (Rule 12b-1) Fees |
0.25% |
1.00% |
| Other
Expenses |
0.25% |
0.25% |
|
Acquired
Fund Fees and Expenses2 |
0.30% |
0.30% |
|
Total
Annual Fund Operating Expenses3 |
1.00% |
1.75% |
1
The
CDSC is eliminated after 12 months following
purchase.
2
Fees
and expenses incurred indirectly by the Fund as a result of investment in shares
of one more underlying funds.
3
Total annual fund
operating expenses for the period ended October 31, 2023 do not match the
financial statements because the financial statements do not include acquired
fund fees and expenses; and for the Class C share does not match the financial
statements due to rounding
Example:
The following example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The example assumes
you invest $10,000
in
the Fund for the time periods indicated and then either redeem or not redeem
your shares at the end of the period. The example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions, your costs would
be:
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| |
|
| Redemption |
No
Redemption |
|
| A |
C |
A |
C |
| 1
Year |
$671 |
$278 |
$671 |
$178 |
| 3
Years |
875 |
| 551 |
| 875 |
| 551 |
| 5
Years |
1,096 |
949 |
1,096 |
| 949 |
| 10
Years |
1,729 |
2,062 |
1,729 |
| 2,062 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover may
indicate higher transaction costs and may result in higher taxes when fund
shares are held in a taxable account. These costs, which are not reflected in
total annual fund operating expenses or in the expense examples above, affect
the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio
turnover rate was 71% of the average value of its
portfolio.
Principal Investment
Strategies
The
Fund invests primarily in shares of other registered investment companies (the
“underlying funds”). The Fund will be diversified among a number of asset
classes and its allocation among underlying funds will be based on an asset
allocation model developed by Madison Asset Management, LLC (“Madison”), the
Fund’s investment adviser. Under normal circumstances, the Fund’s total net
assets will be allocated among various asset classes and underlying funds,
including those whose shares trade on a stock exchange (exchange traded funds or
“ETFs”), with target allocations over time of approximately 80% equity
investments and 20% fixed income investments. Underlying funds in which the Fund
invests may include Funds advised by Madison and/or its affiliates, including
other Madison Funds (the “affiliated underlying Funds”). Generally, Madison will not invest more than 75% of the
Fund’s net assets, at the time of purchase, in affiliated underlying funds.
Although actual allocations may vary, as of October 31, 2023, the Fund’s
portfolio allocation as a percentage of net assets
was:
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|
|
|
|
|
|
| |
| - |
Bond
Funds: |
28.2 |
% |
| - |
Foreign
Stock Funds: |
14.9 |
% |
| - |
Short-Term
Investments: |
13.4 |
% |
| - |
Stock
Funds: |
54.0 |
% |
| - |
Net
Other Assets and Liabilities: |
-10.5 |
% |
With
regard to investments in debt securities, Madison’s bias is toward securities
with intermediate and short-term maturities. As of December 31, 2023, the
weighted average duration of the Fund’s debt portfolio was 5.73 years.
Madison
may employ multiple analytical approaches to determine the appropriate asset
allocation for the Fund, including:
•Macroeconomic
analysis. This approach analyzes high frequency economic and market data across
the global markets in an effort to identify attractive investment opportunities
in countries, regions and/or asset classes.
•Fundamental
analysis. This approach reviews fundamental asset class valuation data to
determine the absolute and relative attractiveness of existing and potential
investment opportunities.
•Correlation
analysis. This approach considers the degree to which returns in different asset
classes do or do not move together, and the Fund’s aim to achieve a favorable
overall risk and return profile.
•Scenario
analysis. This approach analyzes historical and expected return data to model
how individual asset classes and combinations of asset classes would affect the
Fund under different economic and market conditions.
In
addition, Madison has a flexible mandate that permits the Fund, at the sole
discretion of Madison, to materially reduce equity risk exposures when and if
conditions are deemed to warrant such an action.
The
Fund’s investment strategy reflects Madison’s general “Participate and
Protect®”
investment philosophy. Madison’s expectation is that investors in the Fund
will participate in market appreciation during bull markets and experience
something less than full participation during bear markets compared with
investors in portfolios holding more speculative and volatile securities;
therefore, this investment philosophy is intended to represent a conservative
investment strategy. There is no assurance that Madison’s expectations regarding
this investment strategy will be realized.
Although
the Fund expects to pursue its investment objective utilizing its principal
investment strategies regardless of market conditions, the Fund may invest up to
100% in money market instruments. To the extent the Fund engages in this
temporary defensive position, the Fund’s ability to achieve its investment
objective may be diminished.
Principal Risks
The
Fund is a fund of funds, meaning that it invests primarily in the shares of
underlying funds, including ETFs. Thus, the Fund’s investment performance and
its ability to achieve its investment goal are directly related to the
performance of the underlying funds in which it invests. Each underlying Fund’s
performance, in turn, depends on the particular securities in which that
underlying fund invests and the expenses of that underlying fund. Accordingly,
the Fund is subject to the risks of the underlying funds in direct proportion to
the allocation of its assets among the underlying funds.
The
specific risks of owning the Fund are set forth below. You could lose
money as a result of investing in the Fund. An investment
in the Fund is not a deposit of a bank and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government agency, entity or
person. The Fund’s share price and total return will
fluctuate. You should consider your own investment goals, time horizon and
risk tolerance before investing in the Fund.
Asset
Allocation Risk.
The Fund is subject to asset allocation risk, which is the risk that the
selection of the underlying funds and the allocation of the Fund’s assets among
the various asset classes and market segments will cause the Fund to
underperform other funds with a similar investment
objective.
Equity
Risk.
The Fund, through the underlying funds, is subject to equity risk. Equity risk
is the risk that securities held by the Fund will fluctuate in value due to
general market or economic conditions, perceptions regarding the industries in
which the issuers of securities held by the Fund participate, and the
circumstances and performance of companies whose securities the Fund holds. In
addition, while broad market measures of common stocks have historically
generated higher average returns than fixed income securities, common stocks
have also experienced significantly more volatility in those
returns.
Interest
Rate Risk.
To the extent that the Fund invests in underlying funds that invest in debt
securities, the Fund will be subject to interest rate risk,
which is the risk that the value of your investment will fluctuate with changes
in interest rates. Typically, a rise in interest rates causes a decline in the
market value of income-bearing securities. When interest rates rise, bond prices
fall; generally, the longer a bond’s maturity, the more sensitive it is to this
risk.
Credit
and Prepayment/Extension Risk.
The Fund, through the underlying funds, is also subject to credit risk, which
is
the risk that issuers of debt securities may be unable to meet their
interest or principal payment obligations when due. There is also
prepayment/extension risk, which is the chance that a rise/fall in interest
rates will reduce/extend the life of a mortgage-backed security by
increasing/decreasing mortgage prepayments, typically reducing the underlying
Fund’s return.
Non-Investment
Grade Security Risk.
The Fund, through the underlying funds, may invest in non-investment grade
securities (i.e.,
“junk”
bonds). Issuers of non-investment grade securities
are
typically in weak financial health and their ability to pay interest and
principal is uncertain. Compared to issuers of investment-grade bonds, they are
more likely to encounter financial difficulties and to be materially affected by
these difficulties when they do encounter them. “Junk” bond markets may react
strongly to adverse news about an issuer or the economy, or to the perception or
expectation of adverse news.
ETF
Risks.
The main risks of investing in ETFs are the same as investing in a portfolio of
equity securities comprising the index on which the ETF is based, although lack
of liquidity in an ETF could result in it being more volatile than the
securities comprising the index. Additionally, the market prices of ETFs will
fluctuate in accordance with both changes in the market value of their
underlying portfolio securities and due to supply and demand for the instruments
on the exchanges on which they are traded (which may result in their trading at
a discount or premium to their net asset values). Index-based ETF investments
may not replicate exactly the performance of their specific index because of
transaction costs and because of the temporary unavailability of certain
component securities of the index.
Foreign
Security Risk. Investments in foreign securities involve risks relating to
currency fluctuations and to political, social and economic developments abroad,
as well as risks resulting from differences between the regulations to which
U.S. and foreign issuers and markets are subject. These risks may be greater in
emerging markets. The investment markets of emerging countries are generally
more volatile than markets of developed countries with more mature
economies.
Market
Risk.
The Fund, through the underlying funds, is subject to market risk, which is the
risk that the value of an investment may fluctuate in response to stock market
movements. Certain of the underlying funds may invest in the equity securities
of smaller companies, which may fluctuate more in value and be more thinly
traded than the general market.
Performance
The following
bar chart and table provide some indication of the risks of investing in the
Fund. The bar chart shows how the Fund’s investment results have varied from
year to year. The table shows the Fund’s average annual total
returns for various periods compared to a broad market index, as well as a
custom index that reflects the Fund’s asset allocation targets. The
Fund’s past performance (before and after taxes) is not necessarily an
indication of its future performance. Updated performance
information current to the most recent month end is available at no cost by
visiting www.madisonfunds.com
or by calling 1-800-877-6089.
Calendar
Year Total Returns for Class A Shares
(Returns do
not reflect sales charges and would be lower if they
did.)
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| Highest/Lowest
quarter end results during this period were: |
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|
| Highest: |
2Q
2020 |
12.11% |
|
| Lowest: |
1Q
2020 |
-13.53% |
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| |
Average
Annual Total Returns
For
Periods Ended December 31, 2023
|
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| |
|
| 1
Year |
5
Years |
10
Years |
|
Class
A Shares –
Return Before Taxes |
5.88% |
5.10% |
4.86% |
|
Return After
Taxes on Distributions |
5.26% |
3.62% |
3.18% |
|
Return After
Taxes on Distributions and Sale of Fund
Shares |
3.66% |
3.74% |
3.49% |
|
Class
C Shares –
Return
before Taxes |
10.35% |
5.52% |
4.69% |
|
S&P
500®
Index (reflects no deduction for
sales charges, account fees, expenses or
taxes) |
26.29% |
15.69% |
12.03% |
|
Aggressive
Allocation Fund Custom Index
(reflects no deduction for
sales charges, account fees, expenses or
taxes) |
19.24% |
10.56% |
7.85% |
The
Aggressive Allocation Fund Custom Index consists of 56% Russell 3000® Index, 24% MSCI ACWI ex-USA Index and 20% Bloomberg U.S. Aggregate
Bond Index.
After-tax returns are
calculated using the highest historical individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown, and
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
only for Class A shares and will vary for other share classes.
Returns after taxes on
distributions and sale of Fund shares may be higher than other returns for the
same period due to the tax benefit of realizing a capital loss on the sale of
Fund shares.
Portfolio
Management
The
investment adviser to the Fund is Madison Asset Management, LLC Patrick Ryan,
CFA (Head of Multi-Asset Solutions, Portfolio Manager) and Stuart Dybdahl, CFA
and CAIA (Vice President, Portfolio Manager/Analyst) co-manage the Fund. Mr.
Ryan has served in this capacity since January 2008 and Mr. Dybdahl has served
in this capacity since February 2023.
Purchase
and Sale of Fund Shares
The
minimum investment amount to establish an account in Class A and Class C shares
is normally $1,000 for non-retirement accounts and $500 for individual
retirement and education savings accounts, and the minimum to add to an account
is $50. For an account established with an automatic investment plan the minimum
is $50 per month to establish or add to an account.
The
Fund will waive the minimum investment requirements for certain employee benefit
plans and for certain financial intermediaries that submit orders on behalf of
their customers, although the intermediaries may impose their own minimum
investment requirements. The Fund may also reduce or waive the minimum
investment requirements under certain circumstances and on a case-by-case basis
if deemed to be in the best interest of the Fund.
You
may generally purchase, exchange or redeem shares of the Fund on any day the New
York Stock Exchange (NYSE) is open for business by written request (Madison
Funds, P.O. Box 219083, Kansas City, MO 64121-9083), by telephone
(1-800-877-6089), by contacting your financial professional, by wire (purchases
only) or, with respect to purchases and exchanges, online at
www.madisonfunds.com. Requests must be received in good order by the Fund or its
transfer agent prior to the close of regular trading of the NYSE in order to
receive that day's net asset value. Investors wishing to purchase or redeem
shares through a broker-dealer or other financial intermediary should contact
the broker-dealer or financial intermediary to learn how to place an
order.
Tax
Information
Dividends
and capital gains distributions you receive from the Fund are subject to federal
income taxes and may also be subject to state and local taxes, unless you are
tax-exempt or your account is tax-exempt or tax-deferred (in which case, such
distributions may be taxable upon withdrawal). Distributions from the Fund may
be taxed as ordinary income or long-term capital gains.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank or trust company), the Fund and the Fund’s
distributor or its affiliates may pay the intermediary for the sale of Fund
shares and related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your individual
financial adviser to recommend the Fund over another investment. Ask your
individual financial adviser or visit your financial intermediary’s website for
more information.
MADISON DIVERSIFIED
INCOME FUND Fund Summary
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Class/Ticker: |
Class
A - MBLAX |
Class
C - MBLCX |
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Investment
Objective
The
Madison Diversified Income Fund (the "Fund") seeks a high total return through
the combination of income and capital appreciation.
Fees and
Expenses
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and example
below.
You may qualify for Class A sales charge
discounts if you and your immediate family invest, or agree to invest in the
future, at least $25,000 in Madison
Funds.
More
information about these and other discounts is available from your financial
professional, in the “Sales Charges and Fees” section on page
65
of
the prospectus, in the “More About Purchasing and Selling Shares” section on
page
47 of the Funds' statement of additional information ("SAI") and in
the sales charge waiver appendix to this prospectus.
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Shareholder
Fees: (fees
paid directly from your investment) |
Class
A |
Class
C |
| Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
5.75% |
None |
| Maximum
Deferred Sales Charge (Load) (as a percentage of amount
redeemed) |
None |
1.00%¹ |
| Redemption
Fee Within 30 days of Purchase (as a percentage of amount
redeemed) |
None |
None |
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Annual
Fund Operating Expenses: (expenses
that you pay each year as a percentage of the value of your
investment) |
Class
A |
Class
C |
| Management
Fees |
0.20% |
0.20% |
| Distribution
and/or Service (Rule 12b-1) Fees |
0.25% |
1.00% |
| Other
Expenses |
0.21% |
0.21% |
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Acquired
Fund Fees and Expenses2 |
0.45% |
0.45% |
| Total
Annual Fund Operating Expenses |
1.11% |
1.86% |
1
The
CDSC is eliminated after 12 months following
purchase.
2
Fees
and expenses expected to be incurred indirectly by the Fund in the current
fiscal year as a result of investing in shares of one or more underlying
funds.
Example:
The following example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The example assumes
you invest $10,000
in
the Fund for the time periods indicated and then either redeem or not redeem
your shares at the end
of
the period. The example also assumes that your investment has a 5% return each
year and that the Fund’s operating expenses remain the
same.
Although your actual costs may be higher or lower, based on these assumptions,
your costs would be:
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| Redemption |
No
Redemption |
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| A |
C |
| A |
C |
| 1
Year |
$682 |
$289 |
| $682 |
$189 |
| 3
Years |
908 |
585 |
| 908 |
585 |
| 5
Years |
1,151 |
1,006 |
| 1,151 |
1,006 |
| 10
Years |
1,849 |
2,180 |
| 1,849 |
2,180 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover may
indicate higher transaction costs and may result in higher taxes when fund
shares are held in a taxable account. These costs, which are not reflected in
total annual fund operating expenses or in the expense examples above, affect
the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio
turnover rate was 118% of the average value of its
portfolio.
Principal Investment
Strategies
The
Fund invests primarily in shares of other registered investment companies (the
“underlying funds”).
The Fund will be diversified among several asset classes and its allocation
among underlying funds will be based on an asset allocation model developed by
Madison Asset Management, LLC (“Madison”), the Fund’s investment adviser. Under
normal circumstances, the Fund’s total net assets will be allocated among
various asset classes and underlying funds, including those whose shares trade
on a stock exchange (exchange traded funds or “ETFs”),
with target allocations over time of approximately 50% equity investments and
50% fixed income investments. Underlying funds in which the Fund invests may
include funds advised by Madison and/or its affiliates, including other Madison
Funds and ETFs (the “affiliated underlying funds”). Generally, Madison will not invest more than 80% of the
Fund’s net assets, at the time of purchase, in affiliated underlying funds.
Although actual allocations may vary, as of October 31, 2023, the Fund’s
portfolio allocation as a percentage of net assets
was:
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Bond
Funds/Fixed-Income Securities: |
50.8 |
% |
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Foreign
Stock Funds: |
0.0 |
% |
| - |
Short-Term
Investments: |
2.1 |
% |
| - |
Stock
Funds/Common Stocks: |
48.8 |
% |
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Net
Other Assets and Liabilities: |
-1.7 |
% |
With
regard to investments in debt securities, Madison’s bias is toward securities
with intermediate and short-term maturities. As of December 31, 2023, the
weighted average duration of the Fund’s debt portfolio was
4.66
years.
Madison
may employ multiple analytical approaches to determine the appropriate
allocation among the underlying funds, including:
•Macroeconomic
analysis. This approach analyzes high frequency economic and market data across
the global markets in an effort to identify attractive investment opportunities
in countries, regions and/or asset classes.
•Fundamental
analysis. This approach reviews fundamental asset class valuation data to
determine the absolute and relative attractiveness of existing and potential
investment opportunities.
•Correlation
analysis. This approach considers the degree to which returns in different asset
classes do or do not move together, and the Fund’s aim to achieve a favorable
overall risk and return profile.
•Scenario
analysis. This approach analyzes historical and expected return data to model
how individual asset classes and combinations of asset classes would affect the
Fund under different economic and market conditions.
In
addition, Madison has a flexible mandate that permits the Fund, at the sole
discretion of Madison, to materially reduce equity risk exposures when and if
conditions are deemed to warrant such an action.
The
Fund’s investment strategy reflects Madison’s general “Participate and
Protect®”
investment philosophy. Madison’s expectation is that investors in the Fund will
participate in market appreciation during bull markets and experience something
less than full participation during bear markets compared with investors in
portfolios holding more speculative and volatile securities; therefore, this
investment philosophy is intended to represent a conservative investment
strategy. There is no assurance that Madison’s expectations regarding this
investment strategy will be realized.
Although
the Fund expects to pursue its investment objective utilizing its principal
investment strategies regardless of market conditions, the Fund may invest up to
100% in money market instruments. To the extent the Fund engages in this
temporary defensive position, the Fund’s ability to achieve its investment
objective may be diminished.
Principal
Risks
The
specific risks of owning the Fund are set forth below. You could lose
money as a result of investing in the Fund. An investment
in the Fund is not a deposit of a bank and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government agency, entity or
person. The Fund’s share price and total return will
fluctuate. You should consider your own investment goals, time horizon and
risk tolerance before investing in the Fund.
Asset
Allocation Risk.
The Fund is subject to asset allocation risk, which is the risk that the
selection of the underlying funds and the allocation of the Fund’s assets among
the various asset classes and market segments will cause the Fund to
underperform other funds with a similar investment
objective.
ETF
Risks.
The main risks of investing in ETFs are the same as investing in a portfolio of
equity securities comprising the index on which the ETF is based, although lack
of liquidity in an ETF could result in it being more volatile than the
securities comprising the index. Additionally, the market prices of ETFs will
fluctuate in accordance with both changes in the market value of their
underlying portfolio securities and due to supply and demand for the instruments
on the exchanges on which they are traded (which may result in their trading at
a discount or premium to their net asset values). Index-based ETF investments
may not replicate exactly the performance of their specific index because of
transactions costs and because of the temporary unavailability of certain
component securities of the index.
Equity
Risk.
The Fund is subject to equity risk. Equity risk is the risk that securities held
by the Fund will fluctuate in value due to general market or economic
conditions, perceptions regarding the industries in which the issuers of
securities held by the Fund participate, and the circumstances and performance
of companies whose securities the fund holds. In addition, while broad market
measures of common stocks have historically generated higher average returns
than fixed income securities, common stocks have also experienced significantly
more volatility in those returns.
Capital
Gain Realization Risks to Taxpaying Shareholders. Because
of the focused nature of the Fund’s equity portfolio, the Fund is susceptible to
capital gain realization. In other words, when the Fund is successful in
achieving its investment objective, portfolio turnover may generate more capital
gains per share than funds that hold greater numbers of individual securities.
The Fund’s sale of just a few positions will represent a larger percentage of
the Fund’s assets compared with, say, a fund that has hundreds of securities
positions.
Interest
Rate Risk.
The Fund is subject to interest rate risk,
which
is the risk that the value of your investment will fluctuate with changes in
interest rates. Typically, a rise in interest rates causes a decline in the
market value of income-bearing securities. When interest rates rise, bond prices
fall; generally, the longer a bond’s maturity, the more sensitive it is to this
risk.
Credit
Risk.
The Fund is subject to credit risk,
which is the risk that issuers of debt securities may be unable to
meet their interest or principal payment obligations when due.
Non-Investment
Grade Security Risk.
Issuers of non-investment grade securities
(i.e.,
“junk”
bonds) are typically in weak financial health and, compared to issuers of
investment-grade bonds, they are more likely to encounter financial difficulties
and to be materially affected by these difficulties when they do encounter them.
Because the Fund may invest a significant portion of its assets in these
securities, the Fund may be subject to greater levels of credit and liquidity
risk than a fund that does not invest in such securities. These securities are
considered predominately speculative with respect to the issuer's continuing
ability to make principal and interest payments. An economic downturn or period
of rising interest rates could adversely affect the market for these securities
and reduce the Fund's ability to sell these securities. If the issuer of a
security is in default with respect to interest or principal payments, the Fund
may lose its entire investment. Because of the risks involved in investing in
non-investment grade securities, an investment in a fund that invests in such
securities should be considered speculative.
Real
Estate Investment Trusts "REITs" Risk. REITs
pool investors’ Funds for investment primarily in real estate properties or real
estate-related loans. REITs generally derive their income from rents on
the underlying properties or interest on the underlying loans, and their value
is impacted by changes in the value of the underlying property or changes in
interest rates affecting the underlying loans owned by the REITs. REITs
are more susceptible to risks associated with the ownership of real estate and
the real estate industry in general. These risks can include, but are not
limited, fluctuations in the value of underlying properties; defaults by
borrowers or tenants; market saturation; changes in general and local economic
conditions; decreases in market rates for rents; increases in competition,
property taxes, capital expenditures or operating expenses; and other economic,
political or regulatory occurrences affecting the real estate industry. In
addition, REITs depend upon specialized management skills, may not be
diversified (which may increase the price volatility of REITs), may have less
trading volume and liquidity, and may be subject to more abrupt or erratic price
movements than the overall securities market. REITs are not taxed on
income distributed to shareholders provided they comply with several
requirements of the Internal Revenue Code of 1986, as amended. REITs are
subject to the risk of failing to qualify for favorable tax treatment under the
Code.
Foreign
Security and Emerging Market Risk. Investments
in foreign securities, including investments in ADRs and emerging market
securities. involve risks relating to currency fluctuations and to political,
social, and economic developments abroad, as well as risks resulting from
differences between the regulations to which U.S. and foreign issuers and
markets are subject. These risks may be greater in emerging markets. The
investment markets of emerging countries are generally more volatile than
markets of developed countries with more mature
economies.
Depository
Receipt Risk.
Depository receipts, such as American depository receipts (“ADRs”), global
depository receipts (“GDRs”), and European depository receipts (“EDRs”), may be
issued in sponsored or un-sponsored programs. In a sponsored program, a
security issuer has made arrangements to have its securities traded in the form
of depository receipts. In an un-sponsored program, the issuer may not be
directly involved in the creation of the program. Depository receipts
involve many of the same risks as direct investments in foreign
securities. These risks include, but are not limited to, fluctuations in
currency exchange rates, which are affected by international balances of
payments and other financial conditions; government interventions; and
speculation. With respect to certain foreign countries, there is the
possibility of expropriation or nationalization of assets, confiscatory
taxation, political and social upheaval, and economic instability.
Investments in depository receipts that are traded over the counter may also be
subject to liquidity risk.
Market
Risk. The share price of the Fund reflects the value of the securities it
holds. If a security’s price falls, the share price of the Fund will go down
(unless another security’s price rises by an offsetting amount). If the Fund’s
share price falls below the price you paid for your shares, you could lose money
when you redeem your shares.
Performance
The following
bar chart and table provide some indication of the risks of investing in the
Fund. The bar chart shows how the Fund’s investment results have varied from
year to year. The table shows the Fund’s average annual total
returns for various periods compared to a broad measure of market performance,
as well as a custom index that reflects a hypothetical investment allocation of
50% bonds and 50% stock. The Fund’s past performance
(before and after taxes) is not necessarily an indication of its future
performance. Performance data presented below for all periods
prior to July 31, 2023, represents the performance of the previous portfolio
management team of Madison who used different principal investment strategies to
achieve the Fund's investment objective. Updated performance information current
to the most recent month end is available at no cost by visiting www.madisonfunds.com
or by calling 1-800-877-6089.
Calendar Year Total Returns for Class A Shares
(Returns do not reflect sales charges and would be lower if they
did.)
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quarter end results during this period were: |
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| Highest: |
4Q
2022 |
10.12% |
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1Q
2020 |
-13.59% |
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Average
Annual Total Returns
For
Periods Ended December 31, 2023
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| 1
Year |
5
Years |
10
Years |
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Class
A Shares –
Return Before Taxes |
-2.62% |
5.64% |
5.46% |
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Return After
Taxes on Distributions |
-5.88% |
3.50% |
3.78% |
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Return After
Taxes on Distributions and Sale of Fund
Shares |
0.53% |
4.30% |
4.14% |
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Class
C Shares –
Return
Before Taxes |
1.62% |
6.10% |
5.30% |
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S&P
500®
Index (reflects no deduction for
sales charges, account fees, expenses or
taxes) |
26.29% |
15.69% |
12.03% |
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ICE
BofA U.S. Corporate, Government & Mortgage Index (reflects no deduction for
sales charges, account fees, expenses or
taxes) |
5.39% |
1.06% |
1.83% |
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Custom
Blended Index (reflects no deduction for
sales charges, account fees, expenses or
taxes) |
15.51% |
8.51% |
7.09% |
The Custom
Blended Index consists of 50% ICE BofA US Corp. Govt. & Mtg. Index and 50%
S&P 500 Index.
After-tax returns are
calculated using the highest historical individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown, and
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
only for Class A shares and will vary for other share classes.
Returns after taxes on
distributions and sale of Fund shares may be higher than other returns for the
same period due to the tax benefit of realizing a capital loss on the sale of
Fund shares.
Portfolio
Management
The
investment adviser to the Fund is Madison Asset Management, LLC. Patrick Ryan,
CFA (Head of Multi-Asset Solutions, Portfolio Manager) and Stuart Dybdahl, CFA
and CAIA (Vice President, Portfolio Manager/ Analyst) co-manage the Fund.
Messrs. Ryan and Dybdahl have served in this capacity since July
2023.
Purchase
and Sale of Fund Shares
The
minimum investment amount to establish an account in Class A and Class C shares
is normally $1,000 for non-retirement accounts and $500 for individual
retirement and education savings accounts, and the minimum to add to an account
is $50. For an account established with an automatic investment plan the minimum
is $50 per month to establish or add to an account.
The
Fund will waive the minimum investment requirements for certain employee benefit
plans and for certain financial intermediaries that submit orders on behalf of
their customers, although the intermediaries may impose their own minimum
investment requirements. The Fund may also reduce or waive the minimum
investment requirements under certain circumstances and on a case-by-case basis
if deemed to be in the best interest of the Fund.
You
may generally purchase, exchange or redeem shares of the Fund on any day the New
York Stock Exchange (NYSE) is open for business by written request (Madison
Funds, P.O. Box 219083, Kansas City, MO 64121-9083), by telephone
(1-800-877-6089), by contacting your financial professional, by wire (purchases
only) or, with respect to purchases and exchanges, online at
www.madisonfunds.com. Requests must be received in good order by the Fund or its
transfer agent prior to the close of regular trading of the NYSE in order to
receive that day's net asset value. Investors wishing to purchase or redeem
shares through a broker-dealer or other financial intermediary should contact
the broker-dealer or financial intermediary to learn how to place an
order.
Tax
Information
Dividends
and capital gains distributions you receive from the Fund are subject to federal
income taxes and may also be subject to state and local taxes, unless you are
tax-exempt or your account is tax-exempt or tax-deferred (in which case, such
distributions may be taxable upon withdrawal). Distributions from the Fund may
be taxed as ordinary income or long-term capital gains.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank or trust company), the Fund and the Fund’s
distributor or its affiliates may pay the intermediary for the sale of Fund
shares and related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your individual
financial adviser to recommend the Fund over another investment. Ask your
individual financial adviser or visit your financial intermediary’s website for
more information.
MADISON TAX-FREE VIRGINIA
FUND Fund Summary
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Class/Ticker: |
Class
Y - GTVAX |
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Investment
Objective
The
primary investment objective of the Madison Tax-Free Virginia Fund (the "Fund")
is to receive income from municipal bonds and to distribute that income to its
investors as tax-free dividends. The
secondary objective is to distribute dividends that are intended to be exempt
from Virginia (and local) tax as well as federal
tax.
Fees and
Expenses
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table or example
below.
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Shareholder
Fees: (fees
paid directly from your investment) |
Class
Y |
| Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
None |
| Maximum
Deferred Sales Charge (Load) (as a percentage of amount
redeemed) |
None |
| Redemption
Fee Within 30 days of Purchase (as a percentage of amount
redeemed) |
None |
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Annual
Fund Operating Expenses: (expenses
that you pay each year as a percentage of the value of your
investment) |
Class
Y |
| Management
Fees |
0.50% |
| Distribution
and/or Service (Rule 12b-1) Fees |
None |
| Other
Expenses |
0.36% |
| Total
Annual Fund Operating Expenses |
0.86% |
Example:
The following example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The example assumes
you invest $10,000
in
the Fund for the time periods indicated and then redeem your shares at the end
of the period. The example also assumes that your investment has a 5% return
each year and that the Fund’s operating expenses remain the same. Although your
actual costs may be higher or lower, based on these assumptions, your costs
would be:
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| 1
Year |
3
Years |
5
Years |
10
Years |
| Class
Y |
$88 |
$274 |
$477 |
$1,061 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover may
indicate higher transaction costs and may result in higher taxes when fund
shares are held in a taxable account. These costs, which are not reflected in
total annual fund operating expenses or in the expense examples above, affect
the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio
turnover rate was 15% of the average value of its
portfolio.
Principal Investment
Strategies
The Fund
seeks to achieve its investment objectives by investing at least 80% of its net
assets (including borrowings for investment purposes) in municipal bonds that
are exempt from federal and state income tax for residents of Virginia. These
securities may be issued by state governments, their political subdivisions (for
example, cities and counties) and public authorities (for example, school
districts and housing authorities). The Fund may also invest in bonds that,
under federal law, are exempt from federal and state income taxation, such as
bonds issued by the District of Columbia, Puerto Rico, the Virgin Islands and
Guam. The Fund only invests in investment grade bonds, which
means bonds rated in the top four rating categories by a nationally recognized
statistical rating organization, such as Moody’s, S&P or Fitch; however, if
a bond is downgraded below investment grade, the Fund may need to hold the bond
for a period of time in an attempt to avoid selling it at a “fire sale” price.
The Fund invests in general obligation bonds of states and municipalities
(backed by the general credit of the issuing city, state or county) and specific
or limited purpose bonds (supported by, for example, a specific power company,
hospital or highway project).
The
Fund invests in intermediate and long-term bonds having average, aggregate
maturities (at the portfolio level) of 7 to 15 years. The Fund’s weighted
average life as of December 31, 2023 was 9.5 years. Under normal market
conditions, the Fund will have an average duration range of 3 to 10 years,
although it is expected to center around 3 to 7 years. Duration is an
approximation of the expected change in a debt security’s price given a 1% move
in interest rates, using the following formula: [change in debt security value =
(change in interest rates) x (duration) x (-1)]. By way of example, assume XYZ
company issues a five year bond which has a duration of 4.5 years. If interest
rates were to instantly increase by 1%, the bond would be expected to decrease
in value by approximately 4.5%. Securities are selected for the Fund that, in
the opinion of the portfolio managers, provide the highest combination of yield
(i.e., the interest rate the bond pays in relation to its price), credit risk
and diversification. To a lesser extent, consideration is also given as to
whether a particular bond may increase in value from its price at the time of
purchase. The Fund generally holds 50-75 individual securities in its portfolio
at any given time. This reflects the belief of the Fund's investment adviser,
Madison Asset Management, LLC ("Madison"), that your money should be invested in
Madison’s top investment ideas, and that focusing on Madison's best investment
ideas is the best way to achieve the Fund’s investment objectives.
In
the event Madison determines that extraordinary conditions exist (such as tax
law changes or a need to adopt a defensive investment position) making it
advisable to invest a larger portion of the Fund’s assets in taxable
investments, more than 20% and even as much as 100% of the Fund’s assets could
be invested in securities whose income is taxable on the federal or state level.
If this situation were to occur, the Fund would not be invested in a manner
designed to achieve its investment objective.
Although
the Fund expects to pursue its investment objective utilizing its principal
investment strategies regardless of market conditions, the Fund may invest up to
100% in tax-free money market instruments. To the extent the Fund engages in
this temporary defensive position, the Fund’s ability to achieve its investment
objectives may be diminished.
Principal
Risks
The
specific risks of owning the Fund are set forth below. You could lose
money as a result of investing in the Fund. An investment
in the Fund is not a deposit of a bank and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government agency, entity or
person. The Fund’s share price and total return will
fluctuate. You should consider your own investment goals, time horizon and
risk tolerance before investing in the Fund.
Virginia-Specific
Risks.
Particular risks to consider when investing in Virginia securities
are:
•the
Commonwealth must have a balanced budget;
•the
Commonwealth pensions are underfunded;
•the
economy of the Commonwealth bears heavy exposure to defense
contracting;
•Virginians
rely heavily on federal government and technology sector employment;
and
•a
single-term governorship may result in volatile financial policies and
management.
Legislative
Risk. Municipal
bonds pay lower rates of interest than comparable corporate bonds because of the
tax-free nature of their interest payments. If the tax-free status of municipal
securities is altered or eliminated by an act of Congress or the legislature of
any particular state, the value of the affected bonds will drop. This is because
their low interest payments will be less competitive with other taxable
bonds.
Risks
of General Obligation versus Limited Purpose Bonds. General obligation bonds are backed by the unlimited taxing powers
of the municipality issuing the bonds. Limited purpose bonds or “limited tax
general obligation bonds” are more risky because the pledged tax revenues
backing the bonds are limited to revenue sources and maximum property tax
millage amounts. For example, a bond issued by the Commonwealth of Virginia has
an unlimited tax pledge backing the debt service, while a bond issued for
Arlington, Virginia Public School system has a limited revenue source which is
property taxes in the district.
Interest
Rate Risk.
As with most income funds, the Fund is subject to interest rate
risk,
which
is the risk that the value of your investment will fluctuate with changes in
interest rates. Typically, a rise in interest rates causes a decline in the
market value of income bearing securities. When interest rates rise, bond prices
fall; generally, the longer the bond’s maturity, the more sensitive it is to
this risk.
Call
Risk. If
a bond issuer “calls” a bond held by the Fund (i.e., pays it off at a specified
price before it matures), the Fund could have to reinvest the proceeds at a
lower interest rate. It may also experience a loss if the bond is called at a
price lower than what the Fund paid for the bond.
Risk
of Default. Although Madison monitors the condition of bond issuers, it is still
possible that unexpected events could cause the issuer to be unable to pay
either principal or interest on its bond. This could cause the bond to go into
default and lose value. Some federal agency securities are not backed by the
full faith and credit of the United States, so in the event of default, the Fund
would have to look to the agency issuing the bond for ultimate
repayment.
Liquidity
Risk.
The Fund is also subject to liquidity risk, which means there may be little or
no trading activity for the debt securities in which the Fund invests, and that
may make it difficult for the Fund to value accurately and/or sell those
securities. In addition, liquid debt securities in which the Fund invests are
subject to the risk that during certain periods their liquidity will shrink or
disappear suddenly and without warning as a result of adverse economic,
regulatory or market conditions, or adverse investor perceptions. If the Fund
experiences rapid, large redemptions during a period in which a substantial
portion of its debt securities are illiquid, the Fund may be forced to sell
those securities at a discount, which could result in significant fund and
shareholder losses. Liquidity risk may be higher for this Fund than those of
income funds that hold U.S. government securities as part of their portfolios
because the liquidity of U.S. government securities has historically continued
in times of recent market stress. This Fund normally holds few or no U.S.
government securities.
Capital
Gains Tax-Related Risk. While dividend income is expected to be tax-free, fund shareholders
can recognize taxable income in two ways: (1) if you sell your shares at a price
that is higher than when you bought them, you will have a taxable capital gain;
on the other hand, if you sell your shares at a price that is lower than the
price when you bought them, you will have a capital loss; and (2) in the event
the Fund sells more securities at prices higher than when they were bought by
the Fund, the Fund may pass through the profit it makes from these transactions
by making a taxable capital gain distribution.
Alternative
Minimum Tax (AMT) Risk. In
addition to possible taxable capital gain distributions, certain bonds owned by
the Fund generate income that is subject to the federal AMT. The interest on
these “private activity” bonds could become subject to AMT if you are a taxpayer
that meets the AMT criteria. If you are subject to AMT, you will be required to
add any income attributable to these bonds (as reported by the Fund annually) to
other so-called “tax preference items” to determine possible liability for AMT.
Income from AMT bonds may not exceed 20% of the Fund’s net
income.
Performance
The following
bar chart and table provide some indication of the risks of investing in the
Fund. The bar chart shows how the Fund’s investment results have varied from
year to year. The table shows the Fund’s average annual total
returns for various periods compared to a broad measure of market performance.
The Fund’s past performance
(before and after taxes) is not necessarily an indication of its future
performance. Updated performance information current to the most
recent month end is available at no cost by visiting www.madisonfunds.com
or by calling 1-800-877-6089.
Calendar Year Total Returns
for Class Y Shares
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
| Highest/Lowest
quarter end results during this period were: |
|
|
| Highest: |
4Q
2023 |
6.09% |
|
| Lowest: |
1Q
2022 |
-4.96% |
|
|
|
| |
|
|
|
| |
Average Annual Total Returns
For Periods Ended December 31, 2023
|
|
|
|
|
|
|
|
|
|
|
| |
|
| 1
Year |
5
Years |
10
Years |
|
Class
Y Shares –
Return Before Taxes |
3.76% |
1.08% |
1.83% |
|
Return After
Taxes on Distributions |
3.76% |
1.06% |
1.67% |
|
Return After
Taxes on Distributions and Sale of Fund
Shares |
2.97% |
1.25% |
1.76% |
|
ICE
BofA 1-22 Year U.S. Municipal Securities Index
(reflects
no deduction for sales charges, account fees, expenses or
taxes) |
5.65% |
2.24% |
2.77% |
After-tax returns are
calculated using the highest historical individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown, and
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. Returns after taxes on
distributions and sale of Fund shares may be higher than other returns for the
same period due to the tax benefit of realizing a capital loss on the sale of
Fund shares.
Portfolio
Management
The
investment adviser to the Fund is Madison Asset Management, LLC. Mike Peters,
CFA (Vice President, Portfolio Manager) and Jeffrey Matthias, CFA (Vice
President, Portfolio Manager) co-manage the Fund. Mr. Peters has served in this
capacity since February 1997 and Mr. Matthias has served in this capacity since
February 2016.
Purchase
and Sale of Fund Shares
The
minimum investment amount to establish an account in Class Y shares is normally
$1,000 for non-retirement accounts and $500 for individual retirement and
education savings accounts, and the minimum to add to an account is $50. For an
account established with an automatic investment plan the minimum is $50 per
month to establish or add to an account.
The
Fund will waive the minimum investment requirements for certain employee benefit
plans and for certain financial intermediaries that submit orders on behalf of
their customers, although the intermediaries may impose their own minimum
investment requirements. The Fund may also reduce or waive the minimum
investment requirements under certain circumstances and on a case-by-case basis
if deemed to be in the best interest of the Fund.
You
may generally purchase, exchange or redeem shares of the Fund on any day the New
York Stock Exchange (NYSE) is open for business by written request (Madison
Funds, P.O. Box 219083, Kansas City, MO 64121-9083), by telephone
(1-800-877-6089), by contacting your financial professional, by wire (purchases
only) or, with respect to purchases and exchanges, online at
www.madisonfunds.com. Requests must be received in good order by the Fund or its
transfer agent prior to the close of regular trading of the NYSE in order to
receive that day's net asset value.Investors wishing to purchase or redeem
shares through a broker-dealer or other financial intermediary should contact
the broker-dealer or financial intermediary to learn how to place an
order.
Tax
Information
Capital
gains distributions you receive from the Fund are subject to federal income
taxes and may also be subject to state and local taxes; however, tax-exempt
interest distributions from the Fund are generally exempt from federal income
taxes and will normally be exempt from state income tax for investors in
Virginia. In addition to possible taxable capital gains distributions, certain
bonds owned by the Fund generate income that is subject to AMT, although income
from AMT bonds will not exceed 20% of the Fund’s net income.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank or trust company), the Fund and the Fund’s
distributor or its affiliates may pay the intermediary for the sale of Fund
shares and related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your individual
financial adviser to recommend the Fund over another investment. Ask your
individual financial adviser or visit your financial intermediary’s website for
more information.
MADISON TAX-FREE NATIONAL
FUND Fund Summary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Share
Class/Ticker: |
Class
Y - GTFHX |
|
| |
Investment
Objective
The
Madison Tax-Free National Fund (the "Fund") seeks to receive income from
municipal bonds and to distribute that income to shareholders as tax-free
dividends.
Fees and
Expenses
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table or example
below.
|
|
|
|
|
| |
|
Shareholder
Fees: (fees
paid directly from your investment) |
Class
Y |
| Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
None |
| Maximum
Deferred Sales Charge (Load) (as a percentage of amount
redeemed) |
None |
| Redemption
Fee Within 30 days of Purchase (as a percentage of amount
redeemed) |
None |
|
| |
|
Annual
Fund Operating Expenses: (expenses
that you pay each year as a percentage of the value of your
investment) |
Class
Y |
| Management
Fees |
0.40% |
| Distribution
and/or Service (Rule 12b-1) Fees |
None |
| Other
Expenses |
0.36% |
| Total
Annual Fund Operating Expenses |
0.76% |
Example:
The following example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The example assumes
you invest $10,000
in
the Fund for the time periods indicated and then redeem your shares at the end
of the period. The example also assumes that your investment has a 5% return
each year and that the Fund’s operating expenses remain the same. Although your
actual costs may be higher or lower, based on these assumptions, your costs
would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| 1
Year |
3
Years |
5
Years |
10
Years |
| Class
Y |
$78 |
$243 |
$422 |
$942 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover may
indicate higher transaction costs and may result in higher taxes when fund
shares are held in a taxable account. These costs, which are not reflected in
total annual fund operating expenses or in the expense examples above, affect
the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio
turnover rate was 16% of the average value of its
portfolio.
Principal Investment
Strategies
The Fund
seeks to achieve its investment objective by investing at least 80% of its net
assets (including borrowings for investment purposes) in municipal bonds that
are exempt from federal income taxes. These securities may be issued by state
governments, their political subdivisions (for example, cities and counties) and
public authorities (for example, school districts and housing authorities). The
Fund may also invest in bonds that, under federal law, are exempt from federal
and state income taxation, such as bonds issued by the District of Columbia,
Puerto Rico, the Virgin Islands and Guam. The Fund only invests
in investment grade bonds, which means bonds rated in the top four rating
categories by a nationally recognized statistical rating organization, such as
Moody’s, S&P or Fitch; however, if a bond is downgraded below investment
grade, the Fund may need to hold the bond for a period of time in an attempt to
avoid selling it at a “fire sale” price. The Fund invests in general obligation
bonds of states and municipalities (backed by the general credit of the issuing
city, state or county) and specific or limited purpose bonds (supported by, for
example, a specific power company, hospital or highway project).
The
Fund invests in intermediate and long-term bonds having average, aggregate
maturities (at the portfolio level) of 7 to 15 years. The Fund’s weighted
average life as of December 31, 2023 was 8.9 years. Under normal market
conditions, the Fund will have an average duration range of 3 to 10 years,
although it is expected to center around 3 to 7 years. Duration is an
approximation of the expected change in a debt security’s price given a 1% move
in interest rates, using the following formula: [change in debt security value =
(change in interest rates) x (duration) x (-1)]. By way of example, assume XYZ
company issues a five year bond which has a duration of 4.5 years. If interest
rates were to instantly increase by 1%, the bond would be expected to decrease
in value by approximately 4.5%. Securities are selected for the Fund that, in
the opinion of the portfolio managers, provide the highest combination of yield
(i.e., the interest rate the bond pays in relation to its price), credit risk
and diversification. To a lesser extent, consideration is also given as to
whether a particular bond may increase in value from its price at the time of
purchase. The Fund generally holds 50-75 individual securities in its portfolio
at any given time. This reflects the belief of the Fund's investment adviser,
Madison Asset Management, LLC ("Madison"), that your money should be invested in
Madison’s top investment ideas, and that focusing on Madison's best investment
ideas is the best way to achieve the Fund’s investment objectives.
In
the event Madison determines that extraordinary conditions exist (such as tax
law changes or a need to adopt a defensive investment position) making it
advisable to invest a larger portion of the Fund’s assets in taxable
investments, more than 20% and even as much as 100% of the Fund’s assets could
be invested in securities whose income is taxable on the federal or state level.
If this situation were to occur, the Fund would not be invested in a manner
designed to achieve its investment objective.
Although
the Fund expects to pursue its investment objective utilizing its principal
investment strategies regardless of market conditions, the Fund may invest up to
100% in tax-free money market instruments. To the extent the Fund engages in
this temporary defensive position, the Fund’s ability to achieve its investment
objective may be diminished.
Principal
Risks
The
specific risks of owning the Fund are set forth below. You could lose
money as a result of investing in the Fund. An investment
in the Fund is not a deposit of a bank and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government agency, entity or
person. The Fund’s share price and total return will
fluctuate. You should consider your own investment goals, time horizon and
risk tolerance before investing in the Fund.
Risks
of General Obligation versus Limited Purpose Bonds.
General obligation bonds are backed by the unlimited taxing powers of the
municipality issuing the bonds. Limited purpose bonds or “limited tax general
obligation bonds” are more risky because the pledged tax revenues backing the
bonds are limited to revenue sources and maximum property tax millage amounts.
For example, a bond issued by the Commonwealth of Virginia has an unlimited tax
pledge backing the debt service, while a bond issued for Arlington, Virginia
Public School system has a limited revenue source which is property taxes in the
district.
Legislative
Risk. Municipal
bonds pay lower rates of interest than comparable corporate bonds because of the
tax-free nature of their interest payments. If the tax-free status of municipal
securities is altered or eliminated by an act of Congress or the legislature of
any particular state, the value of the affected bonds will drop. This is because
their low interest payments will be less competitive with other taxable
bonds.
Interest
Rate Risk.
As with most income funds, the Fund is subject to interest rate
risk,
which
is the risk that the value of your investment will fluctuate with changes in
interest rates. Typically, a rise in interest rates causes a decline in the
market value of income bearing securities. When interest rates rise, bond prices
fall; generally, the longer the bond’s maturity, the more sensitive it is to
this risk.
Call
Risk. If
a bond issuer “calls” a bond held by the Fund (i.e., pays it off at a specified
price before it matures), the Fund could have to reinvest the proceeds at a
lower interest rate. It may also experience a loss if the bond is called at a
price lower than what the Fund paid for the bond.
Risk
of Default. Although Madison monitors the condition of bond issuers, it is still
possible that unexpected events could cause the issuer to be unable to pay
either principal or interest on its bond. This could cause the bond to go into
default and lose value. Some federal agency securities are not backed by the
full faith and credit of the United States, so in the event of default, the Fund
would have to look to the agency issuing the bond for ultimate
repayment.
Liquidity
Risk.
The Fund is also subject to liquidity risk, which means there may be little or
no trading activity for the debt securities in which the Fund invests, and that
may make it difficult for the Fund to value accurately and/or sell those
securities. In addition, liquid debt securities in which the Fund invests are
subject to the risk that during certain periods their liquidity will shrink or
disappear suddenly and without warning as a result of adverse economic,
regulatory or market conditions, or adverse investor perceptions. If the Fund
experiences rapid, large redemptions during a period in which a substantial
portion of its debt securities are illiquid, the Fund may be forced to sell
those securities at a discount, which could result in significant Fund and
shareholder losses. Liquidity risk may be higher for this Fund than those of
income funds that hold U.S. government securities as part of their portfolios
because the liquidity of U.S. government securities has historically continued
in times of recent market stress. This Fund normally holds few or no U.S.
government securities.
Capital
Gains Tax-Related Risk. While dividend income is expected to be tax-free, fund shareholders
can recognize taxable income in two ways: (1) if you sell your shares at a price
that is higher than when you bought them, you will have a taxable capital gain;
on the other hand, if you sell your shares at a price that is lower than the
price when you bought them, you will have a capital loss; and (2) in the event
the Fund sells more securities at prices higher than when they were bought by
the Fund, the Fund may pass through the profit it makes from these transactions
by making a taxable capital gain distribution.
Alternative
Minimum Tax (AMT) Risk. In
addition to possible taxable capital gain distributions, certain bonds owned by
the Fund generate income that is subject to the federal AMT. The interest on
these “private activity” bonds could become subject to AMT if you are a taxpayer
that meets the AMT criteria. If you are subject to AMT, you will be required to
add any income attributable to these bonds (as reported by the Fund annually) to
other so-called “tax preference items” to determine possible liability for AMT.
Income from AMT bonds may not exceed 20% of the Fund’s net
income.
Performance
The following
bar chart and table provide some indication of the risks of investing in the
Fund. The bar chart shows how the Fund’s investment results have varied from
year to year. The table shows the Fund’s average annual total
returns for various periods compared to a broad measure of market performance.
The Fund’s past performance
(before and after taxes) is not necessarily an indication of its future
performance. Updated performance information current to the most
recent month end is available at no cost by visiting www.madisonfunds.com
or by calling 1-800-877-6089.
Calendar Year Total Returns
for Class Y Shares
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| |
|
| Highest/Lowest
quarter end results during this period were: |
|
|
| Highest: |
4Q
2023 |
5.78% |
|
| Lowest: |
1Q
2022 |
-5.06% |
|
|
|
| |
Average Annual Total Returns
For Periods Ended December 31, 2023
|
|
|
|
|
|
|
|
|
|
|
| |
|
| 1
Year |
5
Years |
10
Years |
|
Class
Y Shares –
Return Before Taxes |
4.00% |
1.59% |
2.25% |
|
Return
After Taxes on Distributions |
4.00% |
1.49% |
2.00% |
|
Return
After Taxes on Distributions and Sale of Fund
Shares |
3.20% |
1.68% |
2.11% |
|
ICE
BofA 1-22 Year U.S. Municipal Securities Index
(reflects no deductions for
sales charges, account fees, expenses or
taxes) |
5.65% |
2.24% |
2.77% |
After-tax returns are
calculated using the highest historical individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown, and
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. Returns after taxes on
distributions and sale of Fund shares may be higher than other returns for the
same period due to the tax benefit of realizing a capital loss on the sale of
Fund shares.
Portfolio
Management
The
investment adviser to the Fund is Madison Asset Management, LLC. Mike Peters,
CFA (Vice President, Portfolio Manager) and Jeffrey Matthias, CFA (Vice
President, Portfolio Manager) co-manage the Fund. Mr. Peters has served in this
capacity since February 1997 and Mr. Matthias has served in this capacity since
February 2016.
Purchase
and Sale of Fund Shares
The
minimum investment amount to establish an account in Class Y shares is normally
$1,000 for non-retirement accounts and $500 for individual retirement and
education savings accounts, and the minimum to add to an account is $50. For an
account established with an automatic investment plan the minimum is $50 per
month to establish or add to an account.
The
Fund will waive the minimum investment requirements for certain employee benefit
plans and for certain financial intermediaries that submit orders on behalf of
their customers, although the intermediaries may impose their own minimum
investment requirements. The Fund may also reduce or waive the minimum
investment requirements under certain circumstances and on a case-by-case basis
if deemed to be in the best interest of the Fund.
You
may generally purchase, exchange or redeem shares of the Fund on any day the New
York Stock Exchange (NYSE) is open for business by written request (Madison
Funds, P.O. Box 219083, Kansas City, MO 64121-9083), by telephone
(1-800-877-6089), by contacting your financial professional, by wire (purchases
only) or, with respect to purchases and exchanges, online at
www.madisonfunds.com. Requests must be received in good order by the Fund or its
transfer agent prior to the close of regular trading of the NYSE in order to
receive that day's net asset value.Investors wishing to purchase or redeem
shares through a broker-dealer or other financial intermediary should contact
the broker-dealer or financial intermediary to learn how to place an
order.
Tax
Information
Capital
gains distributions you receive from the Fund are subject to federal income
taxes and may also be subject to state and local taxes; however, tax-exempt
interest distributions will generally be exempt from federal income taxes and
with regard to state income taxes, the tax- exempt interest attributable to the
shareholder’s home state may be exempt from taxes in that state. In most states,
however, the rest of the capital gains distributions and dividends from the Fund
will be subject to state income tax. In addition to possible taxable capital
gains distributions, certain bonds owned by the Fund generate income that is
subject to AMT, although income from AMT bonds will not exceed 20% of the Fund’s
net income.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank or trust company), the Fund and the Fund’s
distributor or its affiliates may pay the intermediary for the sale of fund
shares and related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your individual
financial adviser to recommend the Fund over another investment. Ask your
individual financial adviser or visit your financial intermediary’s website for
more information.
MADISON HIGH QUALITY
BOND FUND Fund Summary
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Share
Class/Ticker: |
Class
Y - MIIBX |
Class
I - MIIRX |
| |
Investment
Objective
The
Madison High Quality Bond Fund (the "Fund") seeks to obtain the highest total
investment return within the policy limitations of (1) investing in bonds and
money market instruments rated A or better, and (2) maintaining a dollar
weighted average maturity of ten years or less.
Fees and
Expenses
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table or example
below.
|
|
|
|
|
|
|
|
| |
|
Shareholder
Fees: (fees
paid directly from your investment) |
Class
Y |
Class
I |
| Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
None |
None |
| Maximum
Deferred Sales Charge (Load) (as a percentage of amount
redeemed) |
None |
None |
| Redemption
Fee Within 30 days of Purchase (as a percentage of amount
redeemed) |
None |
None |
|
|
| |
|
Annual
Fund Operating Expenses:
(expenses
that you pay each year as a percentage of the value of your
investment) |
Class
Y |
Class
I |
| Management
Fees |
0.30% |
0.30% |
| Distribution
and/or Service (Rule 12b-1) Fees |
None |
None |
| Other
Expenses |
0.20% |
0.11% |
| Total
Annual Fund Operating Expenses |
0.50% |
0.41% |
Example:
The following example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The example assumes
you invest $10,000
in
the Fund for the time periods indicated and then redeem your shares at the end
of the period. The example also assumes that your investment has a 5% return
each year and that the Fund’s operating expenses remain the same. Although your
actual costs may be higher or lower, based on these assumptions, your costs
would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| 1
Year |
3
Years |
5
Years |
10
Years |
| Class
Y |
$51 |
$160 |
$280 |
$628 |
| Class
I |
42 |
132 |
230 |
518 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover may
indicate higher transaction costs and may result in higher taxes when fund
shares are held in a taxable account. These costs, which are not reflected in
total annual fund operating expenses or in the expense examples above, affect
the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio
turnover rate was 45% of the average value of its
portfolio.
Principal Investment
Strategies
The
Fund seeks to achieve its investment objective through diversified investments
in a broad range of corporate debt securities, obligations of the U.S.
Government and its agencies, and money market instruments. In seeking to achieve
the Fund’s goals, the Fund’s investment adviser, Madison Asset Management, LLC
("Madison"), will (1) shorten or lengthen the weighted average life of the Fund
based on its anticipation of the movement of interest rates (the dollar weighted
average maturity is expected to be ten years or less), and (2) monitor the
yields of the various bonds that satisfy the Fund’s investment guidelines to
determine the best combination of yield, credit risk and diversification for the
Fund. Under normal market conditions, the
Fund will invest at least 80% of its net assets (including borrowings for
investment purposes) in higher quality bond issues and, therefore, intends to
maintain an overall portfolio quality rating of A by Standard & Poor’s
and/or A2 by Moody’s. The dollar weighted average maturity of
the Fund as of December 31, 2023 was 3.68 years. The Fund generally holds 50-75
individual securities in its portfolio at any given time. This reflects
Madison's belief that your money should be invested in Madison’s top investment
ideas, and that focusing on Madison's highest conviction investment ideas is the
best way to achieve the Fund’s investment objective.
Madison
may alter the composition of the Fund with regard to quality and maturity and
may sell securities prior to maturity. Under normal circumstances, however,
turnover for the Fund is generally not expected to exceed 100%. Sales of fund
securities may result in capital gains. This can occur any time Madison sells a
bond at a price that was higher than the purchase price, even if Madison does
not engage in active or frequent trading. Madison’s intent when it sells bonds
is to “lock in” any gains already achieved by that investment or, alternatively,
prevent additional or potential losses that could occur if Madison continued to
hold the bond. Turnover may also occur when Madison finds an investment that
could generate a higher return than the investment currently held. However,
increasing portfolio turnover at a time when Madison’s assessment of market
performance is incorrect could lower investment performance. The Fund pays
implied brokerage commissions when it purchases or sells bonds, which is the
difference between the bid and ask price. As a result, as portfolio turnover
increases, the cumulative effect of this may hurt Fund performance. Under normal
circumstances, the Fund will not engage in active or frequent trading of its
bonds. However, it is possible that Madison will determine that market
conditions require a significant change to the composition of the Fund’s
portfolio. For example, if interest rates begin to rise, Madison may attempt to
sell bonds in anticipation of further rate increases before they lose more
value. Also, if the Fund experiences large swings in shareholder purchases and
redemptions, Madison may be required to sell bonds more frequently in order to
generate the cash needed to pay redeeming shareholders. Under these
circumstances, the Fund could make a taxable capital gain
distribution.
Madison
reserves the right to invest a portion of the Fund’s assets in short-term debt
securities (i.e., those with maturities of one year or less) and to maintain a
portion of fund assets in uninvested cash. However, Madison does not intend to
hold more than 35% of the Fund’s assets in such investments, unless Madison
determines that market conditions warrant a temporary defensive investment
position. Under such circumstances, up to 100% of the Fund may be so invested.
To the extent the Fund engages in this temporary defensive position, the Fund’s
ability to achieve its investment objective may be diminished. Short-term
investments may include investment grade certificates of deposit, commercial
paper and repurchase agreements. Madison might hold substantial cash reserves in
seeking to reduce the Fund’s exposure to bond price depreciation during a period
of rising interest rates and to maintain desired liquidity while awaiting more
attractive investment conditions in the bond market.
The
Fund’s investment strategy reflects Madison’s general “Participate and
Protect®”
investment philosophy. Madison’s expectation is that investors in the Fund
will participate in market appreciation during bull markets and experience
something less than full participation during bear markets compared with
investors in portfolios holding more speculative and volatile securities;
therefore, this investment philosophy is intended to represent a conservative
investment strategy. There is no assurance that Madison’s expectations regarding
this investment strategy will be realized.
Principal
Risks
The
specific risks of owning the Fund are set forth below. You could lose
money as a result of investing in the Fund. An investment
in the Fund is not a deposit of a bank and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government agency, entity or
person. The Fund’s share price and total return will
fluctuate. You should consider your own investment goals, time horizon and
risk tolerance before investing in the Fund.
Interest
Rate Risk.
As with most income funds, the Fund is subject to interest rate
risk,
which
is the risk that the value of your investment will fluctuate with changes in
interest rates. Typically, a rise in interest rates causes a decline in the
market value of income bearing securities. When interest rates rise, bond prices
fall; generally, the longer the bond’s maturity, the more sensitive it is to
this risk.
Call
Risk. If
a bond issuer “calls” a bond held by the Fund (i.e., pays it off at a specified
price before it matures), the Fund could have to reinvest the proceeds at a
lower interest rate. It may also experience a loss if the bond is called at a
price lower than what the Fund paid for the bond.
Risk
of Default. Although Madison monitors the condition of bond issuers, it is still
possible that unexpected events could cause the issuer to be unable to pay
either principal or interest on its bond. This could cause the bond to go into
default and lose value. Some federal agency securities are not backed by the
full faith and credit of the United States, so in the event of default, the Fund
would have to look to the agency issuing the bond for ultimate
repayment.
Liquidity
Risk.
The Fund is also subject to liquidity risk, which means there may be little or
no trading activity for the debt securities in which the Fund invests, and that
may make it difficult for the Fund to value accurately and/or sell those
securities. In addition, liquid debt securities in which the Fund invests are
subject to the risk that during certain periods their liquidity will shrink or
disappear suddenly and without warning as a result of adverse economic,
regulatory or market conditions, or adverse investor perceptions. If the Fund
experiences rapid, large redemptions during a period in which a substantial
portion of its debt securities are illiquid, the Fund may be forced to sell
those securities at a discount, which could result in significant fund and
shareholder losses.
Performance
The following
bar chart and table provide some indication of the risks of investing in the
Fund. The bar chart shows how the Fund’s investment results have varied from
year to year. The table shows the Fund’s average annual total
returns for various periods compared to a broad measure of market performance.
The Fund’s past performance
(before and after taxes) is not necessarily an indication of its future
performance. Madison waived 0.10% of the Fund's annual
management fee from August 7, 2020 through February 27, 2022. Investment returns
reflect this fee waiver, without which returns would have been lower. Updated
performance information current to the most recent month end is available at no
cost by visiting www.madisonfunds.com
or by calling 1-800-877-6089.
Calendar Year Total
Returns for Class Y Shares
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| Highest/Lowest
quarter end results during this period were: |
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|
| Highest: |
4Q
2023 |
3.97% |
|
| Lowest: |
1Q
2022 |
-3.84% |
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| |
Average
Annual Total Returns
For
Periods Ended December 31, 2023
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| |
|
| 1
Year |
5
Years |
10
Years |
Since
Inception 2/28/2022 |
|
Class
Y Shares –
Return Before Taxes |
4.55% |
0.82% |
0.95% |
N/A |
| Return
After Taxes on Distributions |
3.61% |
0.19% |
0.35% |
N/A |
| Return
After Taxes on Distributions and Sale of Fund
Shares |
2.68% |
0.38% |
0.48% |
N/A |
|
Class
I Shares –
Return Before Taxes |
4.71% |
N/A |
N/A |
-0.21% |
|
Bloomberg
U.S. Intermediate Government Credit A+ Bond Index
(reflects no deduction for
sales charges, account fees, expenses or
taxes) |
4.77% |
1.30% |
1.49% |
-0.91% |
After-tax returns are
calculated using the highest historical individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown, and
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements such as 401(k) plans or individual retirement
accounts. After-tax returns are shown only for Class Y shares
and will vary for other share classes. Returns
after taxes on distributions and sale of Fund shares may be higher than other
returns for the same period due to the tax benefit of realizing a capital loss
on the sale of Fund shares.
Portfolio
Management
The
investment adviser to the Fund is Madison Asset Management, LLC. Chris Nisbet,
CFA (Vice President, Portfolio Manager) and Mike Sanders, CFA (Head of Fixed
Income, Portfolio Manager) co-manage the Fund. Mr. Nisbet has served in this
capacity since the Fund’s inception in 2000 and Mr. Sanders has served in this
capacity since February 2019.
Purchase
and Sale of Fund Shares
The
minimum investment amount to establish an account in Class Y shares is normally
$1,000 for non-retirement accounts and $500 for individual retirement and
education savings accounts, and the minimum to add to an account is $50. For an
account established with an automatic investment plan the minimum is $50 per
month to establish or add to an account. For accounts with Class I shares
serviced by the Fund’s transfer agent, the minimum investment amount is
$250,000, and there is no minimum to add to an account.
The
Fund will waive the minimum investment requirements for certain employee benefit
plans and for certain financial intermediaries that submit orders on behalf of
their customers, although the intermediaries may impose their own minimum
investment requirements. The Fund may also reduce or waive the minimum
investment requirements under certain circumstances and on a case-by-case basis
if deemed to be in the best interest of the Fund.
You
may generally purchase, exchange or redeem shares of the Fund on any day the New
York Stock Exchange (NYSE) is open for business by written request (Madison
Funds, P.O. Box 219083, Kansas City, MO 64121-9083), by telephone
(1-800-877-6089), by contacting your financial professional, by wire (purchases
only) or, with respect to purchases and exchanges, online at
www.madisonfunds.com. Requests must be received in good order by the Fund or its
transfer agent prior to the close of regular trading of the NYSE in order to
receive that day's net asset value. Investors wishing to purchase or redeem
shares through a broker-dealer or other financial intermediary should contact
the broker-dealer or financial intermediary to learn how to place an
order.
Tax
Information
Dividends
and capital gains distributions you receive from the Fund are subject to federal
income taxes and may also be subject to state and local taxes, unless you are
tax-exempt or your account is tax-exempt or tax-deferred (in which case, such
distributions may be taxable upon withdrawal). Distributions from the Fund may
be taxed as ordinary income or long-term capital gains.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank or trust company), the Fund and the Fund’s
distributor or its affiliates may pay the intermediary for the sale of Fund
shares and related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your individual
financial adviser to recommend the Fund over another investment. Ask your
individual financial adviser or visit your financial intermediary’s website for
more information.
(This
page intentionally left blank.)
MADISON CORE BOND
FUND Fund Summary
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| Share
Class/Ticker: |
Class
A - MBOAX |
Class
Y - MBOYX |
Class
I - MBOIX |
Class
R6 - MBORX |
|
Investment
Objective
The
Madison Core Bond Fund (the "Fund") seeks to generate a high level of current
income, consistent with the prudent limitation of investment
risk.
Fees and
Expenses
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and example
below.
You may qualify for Class A sales charge
discounts if you and your immediate family invest, or agree to invest in the
future, at least $25,000 in
Madison Funds.
More
information about these and other discounts is available from your financial
professional, in the “Sales Charges and Fees” section on page
65
of
the prospectus, in the “More About Purchasing and Selling Shares” section on
page
47
of the Funds' statement of additional information ("SAI") and in the sales
charge waiver appendix to this prospectus.
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|
Shareholder
Fees: (fees
paid directly from your investment) |
Class
A |
Class
Y |
Class
I |
Class
R6 |
| Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
4.50% |
None |
None |
None |
| Maximum
Deferred Sales Charge (Load) (as a percentage of amount
redeemed) |
None |
None |
None |
None |
| Redemption
Fee Within 30 days of Purchase (as a percentage of amount
redeemed) |
None |
None |
None |
None |
|
|
|
|
| |
|
Annual
Fund Operating Expenses:
(expenses
that you pay each year as a percentage of the value of your
investment) |
Class
A |
Class
Y |
Class
I |
Class
R6 |
| Management
Fees |
0.39% |
0.39% |
0.39% |
0.39% |
| Distribution
and/or Service (Rule 12b-1) Fees |
0.25% |
None |
None |
None |
| Other
Expenses |
0.21% |
0.21% |
0.11% |
0.03% |
|
Total
Annual Fund Operating Expenses |
0.85% |
0.60% |
0.50% |
0.42% |
Example:
The following example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The example assumes
you invest $10,000
in
the Fund for the time periods indicated and then redeem your shares at the end
of the period. The example also assumes that your investment has a 5% return
each year and that the Fund’s operating expenses remain the same. Although your
actual costs may be higher or lower, based on these assumptions, your costs
would be:
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| |
|
| 1
Year |
3
Years |
5
Years |
10
Years |
| Class
A |
$533 |
$709 |
$900 |
$1,452 |
| Class
Y |
61 |
192 |
335 |
750 |
| Class
I |
51 |
160 |
280 |
628 |
| Class
R6 |
43 |
135 |
235 |
530 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover may
indicate higher transaction costs and may result in higher taxes when fund
shares are held in a taxable account. These costs, which are not reflected in
total annual fund operating expenses or in the expense examples above, affect
the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio
turnover rate was 30% of the average value of its
portfolio.
Principal Investment
Strategies
Under
normal market conditions, the Fund invests at least 80% of its net assets
(including borrowings for investment purposes) in bonds. To keep current income
relatively stable and to limit share price volatility, the Fund emphasizes
investment grade securities and maintains an intermediate (typically 3-7 year)
average portfolio duration, with the goal of being between 85-115% of the market
benchmark duration (for this purpose, the benchmark used is Bloomberg U.S.
Aggregate Bond
Index, the duration of which as of December 31, 2023 was 6.01
years). Duration is an approximation of the expected change in
a debt security’s price given a 1% move in interest rates, using the following
formula: [change in debt security value = (change in interest rates) x
(duration) x (-1)]. By way of example, assume XYZ company issues a five year
bond which has a duration of 4.5 years. If interest rates were to instantly
increase by 1%, the bond would be expected to decrease in value by approximately
4.5%.
The
Fund is managed so that, under normal market conditions, the weighted average
life of the Fund will be 10 years or less. The weighted average life of the Fund
as of December 31, 2023 was 8.67 years. The Fund strives to add incremental
return in the portfolio by making strategic decisions relating to credit risk,
sector exposure and yield curve positioning. The Fund generally holds 100-500
individual securities in its portfolio at any given time and may invest in the
following instruments:
• Corporate
debt securities: securities issued by domestic and foreign (including emerging
market) corporations which have a rating within the four highest categories and,
to a limited extent (up to 20% of its assets), in securities not rated within
the four highest categories (i.e., “junk bonds”). The Fund’s investment adviser,
Madison Asset Management, LLC (“Madison”), will only invest in lower-grade
securities when it believes that the creditworthiness of the issuer is stable or
improving, and when the potential return of investing in such securities
justifies the higher level of risk;
•
U.S. Government debt securities: securities issued or guaranteed by the U.S.
Government or its agencies or instrumentalities;
• Foreign
government debt securities: securities
issued or guaranteed by a foreign (including emerging market) government or its
agencies or instrumentalities, payable in U.S. dollars, which have a rating
within the four highest categories;
• Non-rated
debt securities:
securities
issued or guaranteed by corporations, financial institutions, and others which,
although not rated by a national rating service, are considered by Madison to
have an investment quality equivalent to those categories in which the Fund is
permitted to invest (including up to 20% of the Fund’s assets in junk bonds);
and
• Asset-backed,
mortgage-backed and commercial mortgage-backed securities: securities issued or
guaranteed by special purpose corporations and financial institutions that
represent direct or indirect participation in, or are collateralized by, an
underlying pool of assets. The types of assets that can be “securitized”
include, among others, residential or commercial mortgages, credit card
receivables, automobile loans, and other assets.
Madison
may alter the composition of the Fund with regard to quality and maturity and
may sell securities prior to maturity. Under normal market conditions, however,
turnover for the Fund is generally not expected to exceed 100%. Sales of fund
securities may result in capital gains. This can occur any time Madison sells a
bond at a price that was higher than the purchase price, even if Madison does
not engage in active or frequent trading. Madison’s intent when it sells bonds
is to “lock in” any gains already achieved by that investment or, alternatively,
prevent additional or potential losses that could occur if Madison continued to
hold the bond. Turnover may also occur when Madison finds an investment that
could generate a higher return than the investment currently held. However,
increasing portfolio turnover at a time when Madison’s assessment of market
performance is incorrect could lower investment performance. The Fund pays
implied brokerage commissions when it purchases or sells bonds, which is the
difference between the bid and ask price. As a result, as portfolio turnover
increases, the cumulative effect of this may hurt Fund performance. Under normal
market conditions, the Fund will not engage in active or frequent trading of its
bonds. However, it is possible that Madison will determine that market
conditions require a significant change to the composition of the Fund’s
portfolio. For example, if interest rates begin to rise, Madison may attempt to
sell bonds in anticipation of further rate increases before they lose more
value. Also, if the Fund experiences large swings in shareholder purchases and
redemptions, Madison may be required to sell bonds more frequently in order to
generate the cash needed to pay redeeming shareholders. Under these
circumstances, the Fund could make a taxable capital gain distribution.
Madison
reserves the right to invest a portion of the Fund’s assets in short-term debt
securities (i.e., those with maturities of one year or less) and to maintain a
portion of fund assets in uninvested cash. However, Madison does not intend to
hold more than 35% of the Fund’s assets in such investments, unless Madison
determines that market conditions warrant a temporary defensive investment
position. Under such circumstances, up to 100% of the Fund may be so invested.
To the extent the Fund engages in this temporary defensive position, the Fund’s
ability to achieve its investment objective may be diminished. Short-term
investments may include investment grade certificates of deposit, commercial
paper and repurchase agreements. Madison might hold substantial cash reserves in
seeking to reduce the Fund’s exposure to bond price depreciation during a period
of rising interest rates and to maintain desired liquidity while awaiting more
attractive investment conditions in the bond market.
The
Fund’s investment strategy reflects Madison’s general “Participate and
Protect®”
investment philosophy. Madison’s expectation is that investors in the Fund
will participate in market appreciation during bull markets and experience
something less than full participation during bear markets compared with
investors in portfolios holding more speculative and volatile securities;
therefore, this investment philosophy is intended to represent a conservative
investment strategy. There is no assurance that Madison’s expectations regarding
this investment strategy will be realized.
Principal
Risks
The
specific risks of owning the Fund are set forth below. You could lose
money as a result of investing in the Fund. An investment
in the Fund is not a deposit of a bank and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government agency, entity or
person. The Fund’s share price and total return will
fluctuate. You should consider your own investment goals, time horizon and
risk tolerance before investing in the Fund.
Interest
Rate Risk.
As with most income funds, the Fund is subject to interest rate
risk,
which
is the risk that the value of your investment will fluctuate with changes in
interest rates. Typically, a rise in interest rates causes a decline in the
market value of income bearing securities. When interest rates rise, bond prices
fall; generally, the longer the bond’s maturity, the more sensitive it is to
this risk.
Call
Risk. If
a bond issuer “calls” a bond held by the Fund (i.e., pays it off at a specified
price before it matures), the Fund could have to reinvest the proceeds at a
lower interest rate. It may also experience a loss if the bond is called at a
price lower than what the Fund paid for the
bond.
Risk
of Default. Although
Madison monitors the condition of bond issuers, it is still possible that
unexpected events could cause the issuer to be unable to pay either principal or
interest on its bond. This could cause the bond to go into default and lose
value. Some federal agency securities are not backed by the full faith and
credit of the United States, so in the event of default, the Fund would have to
look to the agency issuing the bond for ultimate
repayment.
Mortgage-Backed
Securities Risk.
The Fund may own obligations backed by mortgages issued by a government agency
or through a government-sponsored program. If the mortgage holders prepay
principal during a period of falling interest rates, the Fund could be exposed
to prepayment risk. In that case, the Fund would have to reinvest the proceeds
at a lower interest rate. The security itself may not increase in value with the
corresponding drop in rates since the prepayment acts to shorten the maturity of
the security.
Liquidity
Risk.
The Fund is also subject to liquidity risk, which means there may be little or
no trading activity for the debt securities in which the Fund invests, and that
may make it difficult for the Fund to value accurately and/or sell those
securities. In addition, liquid debt securities in which the Fund invests are
subject to the risk that during certain periods their liquidity will shrink or
disappear suddenly and without warning as a result of adverse economic,
regulatory or market conditions, or adverse investor perceptions. If the Fund
experiences rapid, large redemptions during a period in which a substantial
portion of its debt securities are illiquid, the Fund may be forced to sell
those securities at a discount, which could result in significant fund and
shareholder losses.
Credit
Risk and Prepayment/Extension Risk.
The Fund is subject to credit risk,
which
is the risk that issuers of debt securities may be unable to meet their interest
or principal payment obligations when due. There is also prepayment/extension
risk, which is the chance that a fall/rise in interest rates will reduce/extend
the life of a mortgage-backed security by increasing/decreasing mortgage
prepayments, typically reducing the Fund’s
return.
Non-Investment
Grade Security Risk.
To the extent that the Fund invests in non-investment grade
securities,
the
Fund is also subject to above-average credit, market and other risks. Issuers of
non-investment grade securities
(i.e.,
“junk”
bonds) are typically in weak financial health and their ability to pay interest
and principal is uncertain. Compared to issuers of investment grade bonds, they
are more likely to encounter financial difficulties and to be materially
affected by these difficulties when they do encounter them. “Junk” bond markets
may react strongly to adverse news about an issuer or the economy, or to the
perception or expectation of adverse news.
Foreign
Security Risk. Investments in foreign securities involve risks relating to
currency fluctuations and to political, social and economic developments abroad,
as well as risks resulting from differences between the regulations to which
U.S. and foreign issuers and markets are subject. These risks may be greater in
emerging markets. The investment markets of emerging countries are generally
more volatile than markets of developed countries with more mature
economies.
Performance
The following
bar chart and table provide some indication of the risks of investing in the
Fund. The bar chart shows how the Fund’s investment results have varied from
year to year. The table shows the Fund’s average annual total
returns for various periods compared to a broad measure of market performance.
The Fund’s past performance
(before and after taxes) is not necessarily an indication of its future
performance. Updated performance information current to the most
recent month end is available at no cost by visiting www.madisonfunds.com
or by calling 1-800-877-6089.
Calendar Year Total Returns for Class A Shares
(Returns do not reflect sales charges
and would be lower if they
did.)
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|
| Highest/Lowest
quarter end results during this period were: |
|
|
| Highest: |
4Q
2023 |
6.93% |
|
| Lowest: |
1Q
2022 |
-5.66% |
|
|
|
| |
|
|
|
| |
Average
Annual Total Returns
For
Periods Ended December 31, 2023
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| |
|
|
1
Year |
5
Years |
10
Years |
Since
Inception 2/26/2021 |
Since
Inception 2/28/2022 |
|
Class
A Shares –
Return Before Taxes |
0.85% |
0.41% |
1.19% |
N/A |
N/A |
|
Return
After Taxes on Distributions |
-0.30% |
-0.55% |
0.17% |
N/A |
N/A |
|
Return
After Taxes on Distributions and Sale of Fund
Shares |
0.48% |
-0.03% |
0.51% |
N/A |
N/A |
|
Class
Y Shares –
Return
Before Taxes |
5.80% |
1.62% |
1.93% |
N/A |
N/A |
|
Class
I Shares
–
Return
Before Taxes |
5.94% |
N/A |
N/A |
-2.39% |
N/A |
|
Class
R6 Shares –
Return
Before Taxes |
6.02% |
N/A |
N/A |
N/A |
-2.26% |
|
Bloomberg
U.S. Aggregate Bond Index
(reflects no deduction for
sales charges, account fees, expenses or
taxes) |
5.53% |
1.10% |
1.81% |
-2.76% |
-2.83% |
After-tax returns are
calculated using the highest historical individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown, and
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
only for Class A shares and will vary for other share classes.
Returns after taxes on
distributions and sale of Fund shares may be higher than other returns for the
same period due to the tax benefit of realizing a capital loss on the sale of
Fund shares.
Portfolio
Management
The
investment adviser to the Fund is Madison Asset Management, LLC. Mike Sanders,
CFA (Head of Fixed Income, Portfolio Manager) and Allen Olson, CFA (Vice
President, Portfolio Manager/Analyst) co-manage the Fund. Mr. Sanders has served
in this capacity since September 2016. Mr. Olson has served in this capacity
since February 2021.
Purchase
and Sale of Fund Shares
The
minimum investment amount to establish an account in Class A, Class C and Class
Y shares is normally $1,000 for non-retirement accounts and $500 for individual
retirement and education savings accounts, and the minimum to add to an account
is $50. For an account established with an automatic investment plan the minimum
is $50 per month to establish or add to an account. For accounts with Class I or
R6 shares serviced by the Fund’s transfer agent, the minimum investment amount
is $250,000 for Class I shares and $500,000 for Class R6 shares, and there is no
minimum to add to an account.
The
Fund will waive the minimum investment requirements for certain employee benefit
plans and for certain financial intermediaries that submit orders on behalf of
their customers, although the intermediaries may impose their own minimum
investment requirements. The Fund may also reduce or waive the minimum
investment requirements under certain circumstances and on a case-by-case basis
if deemed to be in the best interest of the Fund.
You
may generally purchase, exchange or redeem shares of the Fund on any day the New
York Stock Exchange (NYSE) is open for business by written request (Madison
Funds, P.O. Box 219083, Kansas City, MO 64121-9083), by telephone
(1-800-877-6089), by contacting your financial professional, by wire (purchases
only) or, with respect to purchases and exchanges, online at
www.madisonfunds.com. Requests must be received in good order by the Fund or its
transfer agent prior to the close of regular trading of the NYSE in order to
receive that day's net asset value. Investors wishing to purchase or redeem
shares through a broker-dealer or other financial intermediary should contact
the broker-dealer or financial intermediary to learn how to place an
order.
Tax
Information
Dividends
and capital gains distributions you receive from the Fund are subject to federal
income taxes and may also be subject to state and local taxes, unless you are
tax-exempt or your account is tax-exempt or tax-deferred (in which case, such
distributions may be taxable upon withdrawal). Distributions from the Fund may
be taxed as ordinary income or long-term capital gains.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank or trust company), the Fund and the Fund’s
distributor or its affiliates may pay the intermediary for the sale of Fund
shares and related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your individual
financial adviser to recommend the Fund over another investment. No such
payments are made with respect to Class R6. Ask your individual financial
adviser or visit your financial intermediary’s website for more
information.
MADISON COVERED CALL
& EQUITY INCOME FUND
Fund
Summary
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Class/Ticker: |
Class
A - MENAX |
Class
C - MENCX |
Class
Y - MENYX |
Class
I - MENIX |
Class
R6 - MENRX |
Investment
Objective
The Madison Covered Call & Equity Income Fund (the "Fund")
seeks to provide consistent total return and,
secondarily, to provide a high level of income and gains from option
premiums.
Fees and
Expenses
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and example
below.
You may qualify for Class A sales charge
discounts if you and your immediate family invest, or agree to invest in the
future, at least $25,000 in Madison
Funds.
More
information about these and other discounts is available from your financial
professional, in the “Sales Charges and Fees” section on page
65
of
the prospectus, in the “More About Purchasing and Selling Shares” section on
page
47 of the Funds' statement of additional information ("SAI") and in
the sales charge waiver appendix to this prospectus.
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Shareholder
Fees: (fees
paid directly from your investment) |
Class
A |
Class
C |
Class
Y |
Class
I |
Class
R6 |
| Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
5.75% |
None |
None |
None |
None |
| Maximum
Deferred Sales Charge (Load) (as a percentage of amount
redeemed) |
None |
1.00%¹ |
None |
None |
None |
| Redemption
Fee Within 30 days of Purchase (as a percentage of amount
redeemed) |
None |
None |
None |
None |
None |
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Annual
Fund Operating Expenses:
(expenses
that you pay each year as a percentage of the value of your
investment) |
Class
A |
Class
C |
Class
Y |
Class
I |
Class
R6 |
| Management
Fees |
0.85% |
0.85% |
0.85% |
0.85% |
0.85% |
| Distribution
and/or Service (Rule 12b-1) Fees |
0.25% |
1.00% |
None |
None |
None |
| Other
Expenses |
0.16% |
0.16% |
0.16% |
0.11% |
0.03% |
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Acquired
Fund Fees and Expenses2 |
0.04% |
0.04% |
0.04% |
0.04% |
0.04% |
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Total
Annual Fund Operating Expenses3 |
1.30% |
2.05% |
1.05% |
1.00% |
0.92% |
¹
The
CDSC is eliminated after 12 months following
purchase.
2
Fees
and expenses incurred indirectly by the Fund as a result of investment in shares
of one or more acquired funds.
3
Total annual fund
operating expenses for the period ended October 31, 2023 do not match the
financial statements because the financial statements do not include acquired
fund fees and expenses.
Example:
The following example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The example assumes
you invest $10,000
in
the Fund for the time periods indicated and then either redeem or not redeem
your shares at the end
of
the period. The example also assumes that your investment has a 5% return each
year and that the Fund’s operating expenses remain the
same.
Although your actual costs may be higher or lower, based on these assumptions,
your costs would be:
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| Redemption |
| No
Redemption |
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| A |
C |
Y |
I |
R6 |
| A |
C |
Y |
I |
R6 |
| 1
Year |
$700 |
$308 |
$107 |
$102 |
$94 |
| $700 |
$208 |
$107 |
$102 |
$94 |
| 3
Years |
963 |
643 |
334 |
318 |
293 |
| 963 |
| 643 |
| 334 |
| 318 |
293 |
| 5
Years |
1,247 |
1,103 |
579 |
552 |
509 |
| 1,247 |
| 1,103 |
| 579 |
| 552 |
509 |
| 10
Years |
2,053 |
2,379 |
1,283 |
1,225 |
1,131 |
| 2,053 |
| 2,379 |
| 1,283 |
| 1,225 |
1,131 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover may
indicate higher transaction costs and may result in higher taxes when fund
shares are held in a taxable account. These costs, which are not reflected in
total annual fund operating expenses or in the expense examples above, affect
the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio
turnover rate was 102% of the average value of its
portfolio.
Principal Investment
Strategies
The
Fund invests, under normal conditions, primarily in common stocks of large- and
mid-capitalization issuers that are, in the view of the Fund’s investment
adviser, Madison Asset Management, LLC ("Madison"), selling at a reasonable
price in relation to their long-term earnings growth rates. Under normal market
conditions, the Fund will seek to generate current earnings from option premiums
by writing (selling) covered call options on a substantial portion of its
portfolio securities. The Fund seeks to produce a high level of current income
and current gains generated from option writing premiums and, to a lesser
extent, from dividends.
Under
normal market conditions, the Fund will invest at least 80% of its net assets in
common stocks, with at least 65% of this amount invested in common stocks of
large capitalization issuers that meet the Fund’s selection
criteria. In calculating compliance with these percentages, the
Fund will "look through" to the characteristics of the underlying holdings of
any exchange traded funds ("ETFs") held by the Fund. The Fund may invest the
remainder of its common stock investments in companies that meet the Fund’s
selection criteria but whose market capitalization is considered to be middle
sized or “mid-cap” (generally, stocks with a market capitalization similar to
those companies in the Russell Midcap® Index). In addition, the Fund may invest
up to 15% of its net assets in foreign securities, including American Depositary
Receipts (“ADRs”) and emerging market securities. Madison will allocate the
Fund’s assets among stocks in sectors of the economy based upon Madison’ views
on forward earnings growth rates, adjusted to reflect Madison’s views on
economic and market conditions and sector risk factors. In general, Madison
focuses its investments in the
information
technology, consumer discretionary, health care and financials sectors, and may
invest up to 35% of the Fund’s net assets in any one such sector. The Fund
generally holds 30-60 individual equity and investment company securities,
including ETFs and Unit Investment Trusts ("UITs"), in its portfolio at any
given time. This reflects Madison's belief that your money should be invested in
Madison's top investment ideas, and that focusing on Madison's highest
conviction investment ideas is the best way to achieve the Fund’s investment
objective.
Although
Madison believes that, under normal conditions, at least 80% of the Fund will be
invested in equity securities, high levels of new investment inflow can lead to
periods of higher cash levels which are invested in due course as appropriate
opportunities are identified. In addition, during periods in which stock markets
advance, option assignment activity can rise significantly resulting in options
being exercised and portfolio securities being called away in exchange for
Madison. Madison believes that reinvesting such sale proceeds should be done
carefully and opportunistically such that cash level may remain elevated for
relatively short periods of time until appropriate reinvestment opportunities
are identified. Additionally, during periods when Madison believes the stock
markets in general are overvalued or when there is perceived domestic or global
economic or political risk or when investments in equity securities bear an
above average risk of loss, Madison will delay investment of some or all of the
Fund’s cash until such periods have ended. Thus, in Madison’s discretion, the
Fund’s cash may be held for “temporary defensive purposes,” and might represent
a material percentage of the Fund’s portfolio. These periods may last for a few
weeks or even for a few months, until more attractive market conditions
exist.
The
Fund will employ an option strategy of writing covered call options on a
substantial portion of the common stocks in its portfolio. The extent of option
writing activity will depend upon market conditions and Madison’s ongoing
assessment of the attractiveness of writing call options on the Fund’s stock
holdings. In addition to providing income, covered call writing helps to reduce
the volatility (and risk profile) of the Fund by providing downside protection.
In
addition to its covered call strategy, the Fund may, to a lesser extent (not
more than 20% of its net assets), pursue an option strategy that includes the
writing of both put options and call options on certain of the common stocks in
the Fund’s portfolio. To seek to offset some of the risk of a larger potential
decline in the event the overall stock market has a sizable short-term or
intermediate-term decline, the Fund may, to a limited extent (not more than 2%
of its total assets) purchase put options or put option debit spreads (where
another put option at a lower strike price is sold to offset the cost of the
first put option) on broad-based securities indices (such as the S&P 500,
S&P MidCap 400 or other indices deemed suitable) or certain ETFs that trade
like common stocks but represent such market indices. To seek to offset some of
the risk of a larger potential decline in an individual holding due to a binary
short term company specific event, the Fund may, to a limited extent (not more
than 2% of its total assets) purchase put options on individual equity
holdings.
The
Fund’s investment strategy reflects Madison’s general “Participate and
Protect®”
investment philosophy. Madison’s expectation is that investors in the fund
will participate in market appreciation during bull markets and experience
something less than full participation during bear markets compared with
investors in portfolios holding more speculative and volatile securities;
therefore, this investment philosophy is intended to represent a conservative
investment strategy. There is no assurance that Madison’s expectations regarding
this investment strategy will be realized.
Although
the fund expects to pursue its investment objectives utilizing its principal
investment strategies regardless of market conditions, the fund may invest up to
100% in money market instruments. To the extent the fund engages in this
temporary defensive position, the Fund’s ability to achieve its investment
objectives may be diminished.
Principal
Risks
The
specific risks of owning the Fund are set forth below. You could
lose money as a result of investing in the
fund. An investment in the fund is not a deposit
of a bank and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency, entity or
person. The Fund’s share price and total return will
fluctuate. You should consider your own investment goals, time horizon and
risk tolerance before investing in the Fund.
Option
Risk.
There are several risks associated with transactions in options on securities,
as follows:
•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.
•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 has retained 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 may not be able to effect a closing purchase
transaction in order to terminate its obligation under the option and must then
deliver the underlying security at the exercise price.
•There
can be no assurance that a liquid market will exist when the Fund seeks to close
out an option position. If the Fund were unable to close out a covered call
option that it had written on a security, it would not be able to sell the
underlying security unless the option expired without exercise.
•The
hours of trading for options may not conform to the hours during which the
underlying securities are traded. To the extent that the options markets close
before the markets for the underlying securities, significant price and rate
movements can take place in the underlying markets that cannot be reflected in
the options markets.
•The
value of call options will be affected by changes in the value and dividend
rates of the underlying common stocks, an increase in interest rates, changes in
the actual or perceived volatility of the stock market and the underlying common
stocks and the remaining time to the options’ expiration. Additionally, the
exercise price of an option may be adjusted downward before the option’s
expiration as a result of the occurrence of events affecting the underlying
equity security. A reduction in the exercise price of an option would reduce the
Fund’s capital appreciation potential on the underlying security.
•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. Also, 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.
•If
a put option purchased by the Fund is not sold when it has remaining value, and
if the market price of the underlying security remains equal to or greater than
the exercise price, the Fund will lose its entire investment in the option.
The Fund’s options transactions will be subject to limitations
established by each of the exchanges, boards of trade or other trading
facilities on which such options are traded. The number of options which the
Fund may write or purchase may be affected by options written or purchased by
other clients of Madison or its affiliates.
Tax
Risk.
The Fund will generate taxable income and therefore is subject to tax risk. In
addition to option premium income, most or all of the gains from the sale of the
underlying securities held by the Fund on which options are written may be
short-term capital gains taxed at ordinary income rates in any particular year.
Because the Fund does not have control over the exercise of the call options it
writes, such exercises or other required sales of the underlying stocks may
force the Fund to realize capital gains or losses at inopportune times. The
Fund’s transactions in options are subject to special and complex U.S. federal
income tax provisions that may, among other things, treat dividends that would
otherwise constitute qualified dividend income as non-qualified dividend income;
treat dividends that would otherwise be eligible for the corporate
dividends-received deduction as ineligible for such treatment; disallow, suspend
or otherwise limit the allowance of certain losses or deductions, (iv) convert
lower taxed long-term capital gain into higher taxed short-term capital gain or
ordinary income; convert an ordinary loss or deduction into a capital loss (the
deductibility of which is more limited); and cause the Fund to recognize income
or gain without a corresponding receipt of
cash.
Derivatives
Risk.
The risk that loss may result from investments in options, forwards, futures,
swaps and other derivatives instruments. These instruments may be illiquid,
difficult to price and leveraged so that small changes in the value of the
underlying instruments may produce disproportionate losses to the Fund.
Derivatives are also subject to counterparty risk, which is the risk that the
other party to the transaction will not fulfill its contractual
obligations.
Concentration
Risk.
To the extent that the Fund makes substantial investments in a single sector,
the Fund will be more susceptible to adverse economic or regulatory occurrences
affecting those sectors.
Equity
Risk.
The Fund is subject to equity risk. Equity risk is the risk that securities held
by the Fund will fluctuate in value due to general market or economic
conditions, perceptions regarding the industries in which the issuers of
securities held by the Fund participate, and the circumstances and performance
of companies whose securities the Fund holds. In addition, while broad market
measures of common stocks have historically generated higher average returns
than fixed income securities, common stocks have also experienced significantly
more volatility in those returns.
Mid
Cap Risk.
The Fund’s investments in midsize companies may entail greater risks than
investments in larger, more established companies. Mid-capitalization companies
tend to have narrower product lines, fewer financial resources, and a more
limited trading market for their securities, as compared to larger companies.
They may also experience greater price volatility than securities of larger
capitalization companies because growth prospects for these companies may be
less certain and the market for such securities may be smaller. Some
growth-oriented companies may not have established financial histories; often
have limited product lines, markets, or financial resources; may depend on a few
key personnel for management; and may be susceptible to losses and risks of
bankruptcy.
Market
Risk. The
share price of the Fund reflects the value of the securities it holds. If a
security’s price falls, the share price of the Fund will go down (unless another
security’s price rises by an offsetting amount). If the Fund’s share price falls
below the price you paid for your shares, you could lose money when you redeem
your shares.
Performance
The following
bar chart and table provide some indication of the risks of investing in the
Fund. The bar chart shows how the Fund’s investment results have varied from
year to year. The table shows the Fund’s average annual total
returns for various periods compared to a broad measure of market performance,
as well as the CBOE S&P 500 BuyWrite Index (BXMSM) which is provided because of the Fund’s option writing strategy.
The Fund’s past performance
(before and after taxes) is not necessarily an indication of its future
performance. Updated performance information current to the most
recent month end is available at no cost by visiting www.madisonfunds.com
or by calling 1-800-877-6089.
Calendar
Year Total Returns for Class A Shares
(Returns
do not reflect sales charges and would be lower if they
did.)
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quarter end results during this period were: |
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2Q
2020 |
19.31% |
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| Lowest: |
1Q
2020 |
-20.22% |
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Average
Annual Total Returns
For
Periods Ended December 31, 2023
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| 1
Year |
5
Years |
10
Years |
Since
Inception
2/28/2022 |
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Class
A Shares –
Return Before Taxes |
3.92% |
10.84% |
6.63% |
N/A |
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Return
After Taxes on Distributions |
0.87% |
7.90% |
3.60% |
N/A |
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Return
After Taxes on Distributions and Sale of Fund
Shares |
2.51% |
7.25% |
3.74% |
N/A |
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Class
C Shares –
Return
Before Taxes |
8.36% |
11.36% |
6.48% |
N/A |
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Class
Y Shares –
Return
before Taxes |
10.62% |
12.45% |
7.54% |
N/A |
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Class
I Shares –
Return
before Taxes |
10.63% |
N/A |
N/A |
8.63% |
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Class
R6 Shares –
Return
before Taxes |
10.66% |
12.59% |
7.68% |
N/A |
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S&P
500®
Index (reflects no deduction for
sales charges, account fees, expenses or
taxes) |
26.29% |
15.69% |
12.03% |
6.60% |
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CBOE
S&P 500 BuyWrite®
IndexSM
(BXM) (reflects no deduction for
sales charges, account fees, expenses or
taxes) |
11.82% |
6.08% |
5.58% |
1.27% |
After-tax returns are
calculated using the highest historical individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown, and
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
only for Class A shares and will vary for other share classes.
Returns after taxes on
distributions and sale of Fund shares may be higher than other returns for the
same period due to the tax benefit of realizing a capital loss on the sale of
Fund shares.
Portfolio
Management
The
investment adviser to the Fund is Madison Asset Management, LLC. Ray DiBernardo,
CFA (Vice President, Portfolio Manager/Analyst) and Drew Justman, CFA (Vice
President, Portfolio Manager/Analyst) co-manage the Fund. Mr. DiBernardo has
served in this capacity since inception of the Fund in October 2009 and Mr.
Justman has served in this capacity since December 2016.
Purchase
and Sale of Fund Shares
The
minimum investment amount to establish an account in Class A, Class C and Class
Y shares is normally $1,000 for non-retirement accounts and $500 for individual
retirement and education savings accounts, and the minimum to add to an account
is $50. For an account established with an automatic investment plan the minimum
is $50 per month to establish or add to an account. For accounts with Class I or
R6 shares serviced by the Fund’s transfer agent, the minimum investment amount
is $250,000 for Class I shares and $500,000 for Class R6 shares, and there is no
minimum to add to an account.
The
Fund will waive the minimum investment requirements for certain employee benefit
plans and for certain financial intermediaries that submit orders on behalf of
their customers, although the intermediaries may impose their own minimum
investment requirements. The Fund may also reduce or waive the minimum
investment requirements under certain circumstances and on a case-by-case basis
if deemed to be in the best interest of the Fund.
You
may generally purchase, exchange or redeem shares of the Fund on any day the New
York Stock Exchange (NYSE) is open for business by written request (Madison
Funds, P.O. Box 219083, Kansas City, MO 64121-9083), by telephone
(1-800-877-6089), by contacting your financial professional, by wire (purchases
only) or, with respect to purchases and exchanges, online at
www.madisonfunds.com. Requests must be received in good order by the Fund or its
transfer agent prior to the close of regular trading of the NYSE in order to
receive that day's net asset value. Investors wishing to purchase or redeem
shares through a broker-dealer or other financial intermediary should contact
the broker-dealer or financial intermediary to learn how to place an
order.
Tax
Information
Dividends
and capital gains distributions you receive from the Fund are subject to federal
income taxes and may also be subject to state and local taxes, unless you are
tax-exempt or your account is tax-exempt or tax-deferred (in which case, such
distributions may be taxable upon withdrawal). Distributions from the Fund may
be taxed as ordinary income or long-term capital gains.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank or trust company), the Fund and the Fund’s
distributor or its affiliates may pay the intermediary for the sale of Fund
shares and related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your individual
financial adviser to recommend the Fund over another investment. No such
payments are made with respect to Class R6. Ask your individual financial
adviser or visit your financial intermediary’s website for more
information.
MADISON DIVIDEND INCOME
FUND Fund Summary
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Class/Ticker: |
Class
A - MADAX |
Class
Y - BHBFX |
Class
I - MDMIX |
Class
R6 - MADRX |
Investment
Objective
The Madison Dividend Income Fund (the "Fund") seeks to produce
current income while providing an opportunity for capital
appreciation.
Fees and
Expenses
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and example
below.
You may qualify for Class A sales charge
discounts if you and your immediate family invest, or agree to invest in the
future, at least $25,000 in Madison
Funds.
More
information about these and other discounts is available from your financial
professional, in the “Sales Charges and Fees” section on page
65
of
the prospectus, in the “More About Purchasing and Selling Shares” section on
page
47 of the Funds' statement of additional information ("SAI") and in
the sales charge waiver appendix to this prospectus.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Shareholder
Fees: (fees
paid directly from your investment) |
Class
A |
Class
Y |
Class
I |
Class
R6 |
| Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
5.75% |
None |
None |
None |
| Maximum
Deferred Sales Charge (Load) (as a percentage of amount
redeemed) |
None |
None |
None |
None |
| Redemption
Fee Within 30 days of Purchase (as a percentage of amount
redeemed) |
None |
None |
None |
None |
|
|
|
|
| |
|
Annual
Fund Operating Expenses:
(expenses
that you pay each year as a percentage of the value of your
investment) |
Class
A |
Class
Y |
Class
I |
Class
R6 |
| Management
Fees |
0.70% |
0.70% |
0.70% |
0.70% |
| Distribution
and/or Service (Rule 12b-1) Fees |
0.25% |
None |
None |
None |
| Other
Expenses |
0.21% |
0.21% |
0.11% |
0.03% |
| Total
Annual Fund Operating Expenses |
1.16% |
0.91% |
0.81% |
0.73% |
Example:
The following example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The example assumes
you invest $10,000
in
the Fund for the time periods indicated and then redeem your shares at the end
of the period. The example also assumes that your investment has a 5% return
each year and that the Fund’s operating expenses remain the same. Although your
actual costs may be higher or lower, based on these assumptions, your costs
would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| 1
Year |
3
Years |
5
Years |
10
Years |
| Class
A |
$686 |
$922 |
$1,177 |
$1,903 |
| Class
Y |
93 |
290 |
504 |
1,120 |
| Class
I |
83 |
259 |
450 |
1,002 |
| Class
R6 |
75 |
233 |
406 |
906 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover may
indicate higher transaction costs and may result in higher taxes when fund
shares are held in a taxable account. These costs, which are not reflected in
total annual fund operating expenses or in the expense examples above, affect
the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio
turnover rate was 26% of the average value of its
portfolio.
Principal Investment
Strategies
The
Fund seeks to achieve its investment objective by investing in equity securities
of companies with a market capitalization of over $1 billion and a history of
paying dividends, with the ability to increase dividends over time.
Under normal market conditions, at
least 80% of the Fund’s net assets (including borrowings for investment
purposes) will be invested in dividend paying equity securities.
The Fund's investment adviser, Madison Asset Management, LLC ("Madison"), will
identify investment opportunities by screening for companies that generally have
the following characteristics: (i) a dividend yield of at least 100% of the
market dividend yield (for this purpose, the “market” is the S&P 500); (ii)
a strong balance sheet; (iii) a dividend that has been maintained and which is
likely to increase; (iv) trade on the high side of the company’s historical
relative dividend yield, due to issues which Madison views as temporary; and (v)
other compelling valuation characteristics. Under normal market conditions, the
Fund expects to be fully invested in equity securities, but will maintain the
flexibility to hold up to 20% of the Fund’s assets in investment grade fixed
income securities when warranted in Madison's discretion. The Fund may also
invest up to 25% of its common stock allocation in foreign securities (including
American Depositary Receipts ("ADRs") and emerging market securities). To the
extent invested in common stocks, the Fund generally invests in 30-60 companies
at any given time. This reflects Madison's belief that your money should be
invested in Madison's top investment ideas, and that focusing on Madison's
highest conviction investment ideas is the best way to achieve the Fund’s
investment objective.
Madison
follows a rigorous three-step process when evaluating companies pursuant to
which Madison considers (1) the business model, (2) the management team, and (3)
the valuation of each potential investment. When evaluating the business model,
Madison looks for sustainable competitive advantages, metrics that demonstrate
relatively high levels of profitability, stable and growing earnings, and a
solid balance sheet. When assessing management, Madison evaluates its
operational and capital allocation track records and the nature of its
accounting practices. The final step in the process is assessing the proper
valuation for the company. Madison strives to purchase securities trading at a
discount to their intrinsic
value
as determined by discounted cash flows modeling and additional valuation
methodologies. Often, Madison finds companies that clear the business model and
management team hurdles, but not the valuation hurdle. Those companies are
monitored for inclusion at a later date when the price may be more appropriate.
Madison seeks to avoid the downside risks associated with overpriced
securities.
Madison
may sell stocks for a number of reasons, including: (i) the price target Madison
has set for stock has been achieved, (ii) the fundamental business prospects for
the company have materially changed, or (iii) Madison finds a more attractive
alternative. In addition, with regard to dividend paying stocks in particular,
Madison may sell a stock that has reduced its dividend to a level that brings
the yield on the stock to below the market (S&P 500) dividend yield, but
only if the reduction in dividend appears to Madison to be a symptom of
fundamental difficulties with the company that are other than temporary in
nature.
The
Fund’s investment strategy reflects Madison’s general “Participate and
Protect®”
investment philosophy. Madison’s expectation is that investors in the Fund
will participate in market appreciation during bull markets and experience
something less than full participation during bear markets compared with
investors in portfolios holding more speculative and volatile securities;
therefore, this investment philosophy is intended to represent a conservative
investment strategy. There is no assurance that Madison’s expectations regarding
this investment strategy will be realized.
Although
the Fund expects to pursue its investment objective utilizing its principal
investment strategies regardless of market conditions, the Fund may invest up to
100% in money market instruments. To the extent the Fund engages in this
temporary defensive position, the Fund’s ability to achieve its investment
objective may be diminished.
Principal
Risks
The
specific risks of owning the Fund are set forth below. You could
lose money as a result of investing in the
Fund. An investment in the Fund is not a deposit
of a bank and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency, entity or
person. The Fund’s share price and total return will
fluctuate. You should consider your own investment goals, time horizon and
risk tolerance before investing in the Fund.
Equity
Risk.
The Fund is subject to equity risk. Equity risk is the risk that securities held
by the Fund will fluctuate in value due to general market or economic
conditions, perceptions regarding the industries in which the issuers of
securities held by the Fund participate, and the circumstances and performance
of companies whose securities the Fund holds. In addition, while broad market
measures of common stocks have historically generated higher average returns
than fixed income securities, common stocks have also experienced significantly
more volatility in those returns.
Capital
Gain Realization Risks to Taxpaying Shareholders. Because
of the focused nature of the Fund’s portfolio, the Fund is susceptible to
capital gain realization. In other words, when the Fund is successful in
achieving its investment objective, portfolio turnover may generate more capital
gains per share than funds that hold greater numbers of individual securities.
The Fund’s sale of just a few positions will represent a larger percentage of
the Fund’s assets compared with, say, a fund that has hundreds of securities
positions.
Growth
and Value Risks. Stocks with growth characteristics can experience sharp price
declines as a result of earnings disappointments, even small ones. Stocks with
value characteristics carry the risk that investors will not recognize their
intrinsic value for a long time or that they are appropriately priced at a low
level. Because the Fund generally follows a strategy of holding stocks with both
growth and value characteristics, any stock’s share price may be negatively
affected by either set of risks.
Special
Risks Associated with Dividend Paying Stocks.
Raising interest rates have the potential to hurt the value and/or price of
higher dividend yielding stocks more so than the overall market. In
addition, higher dividend yielding stocks may go through periods of
underperformance as a group versus the broader
market.
Foreign
Security and Emerging Market Risk. Investments in foreign securities, including investments in ADRs
and emerging market securities, involve risks relating to currency fluctuations
and to political, social, and economic developments abroad, as well as risks
resulting from differences between the regulations to which U.S. and foreign
issuers and markets are subject. These risks may be greater in emerging markets.
The investment markets of emerging countries are generally more volatile than
markets of developed countries with more mature economies.
Depository
Receipt Risk.
Depository receipts, such as American depository receipts (“ADRs”), global
depository receipts (“GDRs”), and European depository receipts (“EDRs”), may be
issued in sponsored or un-sponsored programs. In a sponsored program, a
security issuer has made arrangements to have its securities traded in the form
of depository receipts. In an un-sponsored program, the issuer may not be
directly involved in the creation of the program. Depository receipts
involve many of the same risks as direct investments in foreign
securities. These risks include, but are not limited to, fluctuations in
currency exchange rates, which are affected by international balances of
payments and other financial conditions; government interventions; and
speculation. With respect to certain foreign countries, there is the
possibility of expropriation or nationalization of assets, confiscatory
taxation, political and social upheaval, and economic instability.
Investments in depository receipts that are traded over the counter may also be
subject to liquidity risk.
Interest
Rate Risk.
To the extent the Fund invests in fixed income securities (i.e., bonds), the
Fund will be subject to interest rate risk, which is the risk that the value of
your investment will fluctuate with changes in interest rates. Typically, a rise
in interest rates causes a decline in the market value of income-bearing
securities. When interest rates rise, bond prices fall; generally, the longer a
bond’s maturity, the more sensitive it is to this
risk.
Market
Risk. The share price of the Fund reflects the value of the securities it
holds. If a security’s price falls, the share price of the Fund will go down
(unless another security’s price rises by an offsetting amount). If the Fund’s
share price falls below the price you paid for your shares, you could lose money
when you redeem your shares.
Performance
The following
bar chart and table provide some indication of the risks of investing in the
Fund. The bar chart shows how the Fund’s investment results have varied from
year to year. The table shows the Fund’s average annual total
returns for various periods compared to two broad measures of market
performance, as well as with returns of an index of funds with similar
investment objectives. The Fund’s past performance
(before and after taxes) is not necessarily an indication of its future
performance. Madison waived 0.10% of the Fund's annual
management fee and 0.05% of the Fund's annual services fee for Class Y shares
from June 29, 2012 through May 31, 2020. Investment returns reflect these fee
waivers, without which returns would have been lower. Updated performance
information current to the most recent month end is available at no cost by
visiting www.madisonfunds.com
or by calling 1-800-877-6089.
Calendar Year Total
Returns for Class Y Shares
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|
|
|
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
| Highest/Lowest
quarter end results during this period were: |
|
|
| Highest: |
4Q
2022 |
13.86% |
|
| Lowest: |
1Q
2020 |
-20.41% |
|
|
|
| |
|
|
|
| |
Average
Annual Total Returns
For
Periods Ended December 31, 2023
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|
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|
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|
|
|
|
|
|
|
|
| |
|
| 1
Year |
5
Years |
10
Years |
Since
Inception 5/29/2020 |
Since
Inception 8/31/2020 |
Since
Inception 2/28/2022 |
|
Class
Y Shares –
Return Before Taxes |
1.72% |
9.47% |
8.68% |
N/A |
N/A |
N/A |
| Return
After Taxes on Distributions |
0.31% |
7.85% |
7.04% |
N/A |
N/A |
N/A |
| Return
After Taxes on Distributions and Sale of Fund
Shares |
1.99% |
7.43% |
6.76% |
N/A |
N/A |
N/A |
|
Class
A Shares
–
Return Before Tax |
-4.38% |
N/A |
N/A |
7.76% |
N/A |
N/A |
|
Class
I Shares –
Return Before Tax |
1.82% |
N/A |
N/A |
N/A |
8.04% |
N/A |
|
Class
R6 Shares
–
Return Before Tax |
1.94% |
N/A |
N/A |
N/A |
N/A |
0.35% |
|
S&P
500®
Index (reflects no deduction for
sales charges, account fees, expenses or
taxes) |
26.29% |
15.69% |
12.03% |
15.16% |
11.47% |
6.60% |
|
Russell
1000®
Value Index (reflects no deduction for
sales charges, account fees, expenses or
taxes) |
11.46% |
10.91% |
8.40% |
13.47% |
12.09% |
3.63% |
|
|
|
|
|
|
| |
|
Lipper
Equity Income Funds Index (reflects no deduction for
sales charges, account fees, expenses or
taxes) |
10.37% |
11.34% |
8.61% |
12.81% |
11.21% |
4.14% |
After-tax returns are
calculated using the highest historical individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown, and
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
only for Class Y shares and will vary for other share classes.
Returns after taxes on
distributions and sale of Fund shares may be higher than other returns for the
same period due to the tax benefit of realizing a capital loss on the sale of
Fund shares.
Portfolio
Management
The
investment adviser to the Fund is Madison Asset Management, LLC. John Brown, CFA
(Vice President, Portfolio Manager/Analyst) and Drew Justman, CFA (Vice
President, Portfolio Manager/Analyst) co-manage the Fund. Mr. Brown has served
in this capacity since March 2012, and Mr. Justman has served in this capacity
since April 2013.
Purchase
and Sale of Fund Shares
The
minimum investment amount to establish an account in Class A and Class Y shares
is normally $1,000 for non-retirement accounts and $500 for individual
retirement and education savings accounts, and the minimum to add to an account
is $50. For an account established with an automatic investment plan the minimum
is $50 per month to establish or add to an account. For accounts with Class I or
R6 shares serviced by the Fund’s transfer agent, the minimum investment amount
is $250,000 for Class I shares and $500,000 for Class R6 shares, and there is no
minimum to add to an account.
The
Fund will waive the minimum investment requirements for certain employee benefit
plans and for certain financial intermediaries that submit orders on behalf of
their customers, although the intermediaries may impose their own minimum
investment requirements. The Fund may also reduce or waive the minimum
investment requirements under certain circumstances and on a case-by-case basis
if deemed to be in the best interest of the Fund.
You
may generally purchase, exchange or redeem shares of the Fund on any day the New
York Stock Exchange (NYSE) is open for business by written request (Madison
Funds, P.O. Box 219083, Kansas City, MO 64121-9083), by telephone
(1-800-877-6089), by contacting your financial professional, by wire (purchases
only) or, with respect to purchases and exchanges, online at
www.madisonfunds.com. Requests must be received in good order by the Fund or its
transfer agent prior to the close of regular trading of the NYSE in order to
receive that day's net asset value. Investors wishing to purchase or redeem
shares through a broker-dealer or other financial intermediary should contact
the broker-dealer or financial intermediary to learn how to place an
order.
Tax
Information
Dividends
and capital gains distributions you receive from the Fund are subject to federal
income taxes and may also be subject to state and local taxes, unless you are
tax-exempt or your account is tax-exempt or tax-deferred (in which case, such
distributions may be taxable upon withdrawal). Distributions from the Fund may
be taxed as ordinary income or long-term capital gains.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank or trust company), the Fund and the Fund’s
distributor or its affiliates may pay the intermediary for the sale of Fund
shares and related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your individual
financial adviser to recommend the Fund over another investment. Ask your
individual financial adviser or visit your financial intermediary’s website for
more information.
MADISON INVESTORS
FUND Fund Summary
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| |
| Share
Class/Ticker: |
Class
A - MNVAX |
Class
Y - MINVX |
Class
I - MIVIX |
Class
R6 - MNVRX |
Investment
Objective
The
Madison Investors Fund (the "Fund") seeks long-term capital
appreciation.
Fees and
Expenses
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and example
below.
You may qualify for Class A sales charge
discounts if you and your immediate family invest, or agree to invest in the
future, at least $25,000 in Madison
Funds.
More
information about these and other discounts is available from your financial
professional, in the “Sales Charges and Fees” section on page
65
of
the prospectus, in the “More About Purchasing and Selling Shares” section on
page
47 of the Funds' statement of additional information ("SAI") and in
the sales charge waiver appendix to this prospectus.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Shareholder
Fees: (fees
paid directly from your investment) |
Class
A |
Class
Y |
Class
I |
Class
R6 |
| Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
5.75% |
None |
None |
None |
| Maximum
Deferred Sales Charge (Load) (as a percentage of amount
redeemed) |
None |
None |
None |
None |
| Redemption
Fee Within 30 days of Purchase (as a percentage of amount
redeemed) |
None |
None |
None |
None |
|
|
|
|
| |
|
Annual
Fund Operating Expenses:
(expenses
that you pay each year as a percentage of the value of your
investment) |
Class
A |
Class
Y |
Class
I |
Class
R6 |
| Management
Fees |
0.70% |
0.70% |
0.70% |
0.70% |
| Distribution
and/or Service (Rule 12b-1) Fees |
0.25% |
None |
None |
None |
| Other
Expenses |
0.21% |
0.21% |
0.11% |
0.03% |
| Total
Annual Fund Operating Expenses |
1.16% |
0.91% |
0.81% |
0.73% |
Example:
The following example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The example assumes
you invest $10,000 in the Fund for the time periods indicated and then redeem your
shares at the end of the period. The example also assumes that your investment
has a 5% return each year and that the Fund’s operating expenses remain the
same. Although your actual costs may be higher or lower, based on these
assumptions, your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| 1
Year |
3
Years |
5
Years |
10
Years |
| Class
A |
$686 |
$922 |
$1,177 |
$1,903 |
| Class
Y |
93 |
290 |
504 |
1,120 |
| Class
I |
83 |
259 |
450 |
1,002 |
| Class
R6 |
75 |
233 |
406 |
906 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover may
indicate higher transaction costs and may result in higher taxes when fund
shares are held in a taxable account. These costs, which are not reflected in
total annual fund operating expenses or in the expense examples above, affect
the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio
turnover rate was 22% of the average value of its
portfolio.
Principal Investment
Strategies
The Fund
seeks to achieve its investment objective by investing in the common stock of
established, high-quality companies selected via bottom-up fundamental analysis.
Under normal market conditions, the Fund will maintain at least 80% of its net
assets (including borrowings for investment purposes) in such securities. The
portfolio managers define “high-quality” companies as those businesses that have
demonstrated stable revenue and earnings growth patterns and high profitability
metrics, and that maintain proportionately low levels of debt. The Fund may also
invest up to 35% of its assets in foreign securities (including American
Depositary Receipts ("ADRs") and emerging market securities). To
the extent invested in common stocks, the Fund generally invests in only 25-40
companies at any given time. This reflects the belief of the Fund's investment
adviser, Madison Asset Management, LLC ("Madison"), that your money should be
invested in Madison’s top investment ideas, and that focusing on Madison’s best
investment ideas is the best way to achieve the Fund’s investment objectives.
Madison
follows a rigorous three-step process when evaluating companies pursuant to
which Madison considers (1) the business model, (2) the management team, and (3)
the valuation of each potential investment. When evaluating the business model,
Madison looks for sustainable competitive advantages, metrics that demonstrate
relatively high levels of profitability, stable and growing earnings, and a
solid balance sheet.
When
assessing management, Madison evaluates its operational and capital allocation
track records and the nature of its accounting practices. The final step in the
process is assessing the proper valuation for the company. Madison strives to
purchase securities trading at a discount to their intrinsic value as determined
by discounted cash flows modeling and additional valuation methodologies. Often,
Madison finds companies that clear the business model and management team
hurdles, but not the valuation hurdle. Those companies are monitored for
inclusion at a later date when the price may be more appropriate. Madison seeks
to avoid the downside risks associated with overpriced securities.
Madison
may sell stocks for a number of reasons, including: (i) the price target Madison
has set for stock has been achieved or exceeded, (ii) the fundamental business
prospects for the company have materially changed, or (iii) Madison finds a more
attractive alternative.
The
Fund’s investment strategy reflects Madison’s general “Participate and
Protect®”
investment philosophy. Madison’s expectation is that investors in the Fund
will participate in market appreciation during bull markets and experience
something less than full participation during bear markets compared with
investors in portfolios holding more speculative and volatile securities;
therefore, this investment philosophy is intended to represent a conservative
investment strategy. There is no assurance that Madison’s expectations regarding
this investment strategy will be realized.
Although
the Fund expects to pursue its investment objective utilizing its principal
investment strategies regardless of market conditions, the Fund may invest up to
100% in money market instruments. To the extent the Fund engages in this
temporary defensive position, the Fund’s ability to achieve its investment
objective may be diminished.
Principal
Risks
The
specific risks of owning the Fund are set forth below. You could
lose money as a result of investing in the
Fund. An investment in the Fund is not a deposit
of a bank and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency, entity or
person. The Fund’s share price and total return will
fluctuate. You should consider your own investment goals, time horizon and
risk tolerance before investing in the Fund.
Equity
Risk.
The Fund is subject to equity risk. Equity risk is the risk that securities held
by the Fund will fluctuate in value due to general market or economic
conditions, perceptions regarding the industries in which the issuers of
securities held by the Fund participate, and the circumstances and performance
of companies whose securities the Fund holds. In addition, while broad market
measures of common stocks have historically generated higher average returns
than fixed income securities, common stocks have also experienced significantly
more volatility in those returns.
Growth
and Value Risks. Stocks with growth characteristics can experience sharp price
declines as a result of earnings disappointments, even small ones. Stocks with
value characteristics carry the risk that investors will not recognize their
intrinsic value for a long time or that they are appropriately priced at a low
level. Because the Fund generally follows a strategy of holding stocks with both
growth and value characteristics, any stock’s share price may be negatively
affected by either set of risks.
Capital
Gain Realization Risks to Taxpaying Shareholders. Because
of the focused nature of the Fund’s portfolio, the Fund is susceptible to
capital gain realization. In other words, when the Fund is successful in
achieving its investment objective, portfolio turnover may generate more capital
gains per share than funds that hold greater numbers of individual securities.
The Fund’s sale of just a few positions will represent a larger percentage of
the Fund’s assets compared with, say, a fund that has hundreds of securities
positions.
Foreign
Security and Emerging Market Risk. Investments in foreign securities, including investments in ADRs
and emerging market securities, involve risks relating to currency fluctuations
and to political, social, and economic developments abroad, as well as risks
resulting from differences between the regulations to which U.S. and foreign
issuers and markets are subject. These risks may be greater in emerging markets.
The investment markets of emerging countries are generally more volatile than
markets of developed countries with more mature economies.
Depository
Receipt Risk.
Depository receipts, such as American depository receipts (“ADRs”), global
depository receipts (“GDRs”), and European depository receipts (“EDRs”), may be
issued in sponsored or un-sponsored programs. In a sponsored program, a
security issuer has made arrangements to have its securities traded in the form
of depository receipts. In an un-sponsored program, the issuer may not be
directly involved in the creation of the program. Depository receipts
involve many of the same risks as direct investments in foreign
securities. These risks include, but are not limited to, fluctuations in
currency exchange rates, which are affected by international balances of
payments and other financial conditions; government interventions; and
speculation. With respect to certain foreign countries, there is the
possibility of expropriation or nationalization of assets, confiscatory
taxation, political and social upheaval, and economic instability.
Investments in depository receipts that are traded over the counter may also be
subject to liquidity risk.
Market
Risk. The share price of the Fund reflects the value of the securities it
holds. If a security’s price falls, the share price of the Fund will go down
(unless another security’s price rises by an offsetting amount). If the Fund’s
share price falls below the price you paid for your shares, you could lose money
when you redeem your shares.
Performance
The following
bar chart and table provide some indication of the risks of investing in the
Fund. The bar chart shows how the Fund’s investment results have varied from
year to year. The table shows the Fund’s average annual total
returns for various periods compared to a broad measure of market performance.
The Fund’s past performance
(before and after taxes) is not necessarily an indication of its future
performance. Madison waived between 0.11% to 0.15% of the Fund's
management fee and/or services fee annually for Class Y shares from February 6,
2009 through February 28, 2016; 0.15% for Class A shares from September 23, 2013
to February 28, 2016; and 0.10% for Class R6 shares from September 23, 2013
until May 1, 2014. Investment returns reflect these fee waivers, without which
returns would have been lower. Updated performance information current to the
most recent month end is available at no cost by visiting www.madisonfunds.com
or by calling 1-800-877-6089.
Calendar Year Total
Returns for Class Y Shares
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| |
|
| Highest/Lowest
quarter end results during this period were: |
|
|
| Highest: |
2Q
2020 |
17.51% |
|
| Lowest: |
1Q
2020 |
-20.53% |
|
|
|
| |
|
|
|
| |
Average
Annual Total Returns
For
Periods Ended December 31, 2023
|
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|
|
|
|
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| |
|
| 1
Year |
5
Years |
10
Years |
Since
Inception 9/23/2013 |
Since
Inception 8/31/2020 |
|
Class
Y Shares –
Return Before Taxes |
26.09% |
14.93% |
11.96% |
N/A |
N/A |
|
Return
After Taxes on Distributions |
23.82% |
12.97% |
9.41% |
N/A |
N/A |
|
Return
After Taxes on Distributions and Sale of Fund
Shares |
17.07% |
11.76% |
9.03% |
N/A |
N/A |
|
Class
A Shares –
Return
Before Taxes |
18.61% |
13.29% |
11.03% |
11.54% |
N/A |
|
Class
I Shares –
Return Before Taxes |
26.24% |
N/A |
N/A |
N/A |
12.53% |
|
Class
R6 Shares –
Return
before Taxes |
26.37% |
15.14% |
12.17% |
12.68% |
N/A |
|
S&P
500®
Index
(reflects no deduction for
sales charges, account fees, expenses or
taxes) |
26.29% |
15.69% |
12.03% |
12.66% |
11.47% |
After-tax returns are
calculated using the highest historical individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown, and
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
only for Class Y shares and will vary for other share classes.
Returns after taxes on
distributions and sale of Fund shares may be higher than other returns for the
same period due to the tax benefit of realizing a capital loss on the sale of
Fund shares.
Portfolio
Management
The
investment adviser to the Fund is Madison Asset Management, LLC. Richard
Eisinger (Co-Head of Investments and Portfolio Manager/Analyst), Haruki Toyama
(Head of Mid Cap and Large Cap Equity and Portfolio Manager/Analyst) and Joe
Maginot (Vice President and Portfolio Manager/Analyst) co-manage the Fund. Mr.
Eisinger served in this capacity from January 2000 until May 2010, and again
since June 2019; and Messrs. Toyama and Maginot have served in this capacity
since February 2022.
Purchase
and Sale of Fund Shares
The
minimum investment amount to establish an account in Class A and Class Y shares
is normally $1,000 for non-retirement accounts and $500 for individual
retirement and education savings accounts, and the minimum to add to an account
is $50. For an account established with an automatic investment plan the minimum
is $50 per month to establish or add to an account. For accounts with Class I or
R6 shares serviced by the Fund’s transfer agent, the minimum investment amount
is $250,000 for Class I shares and $500,000 for Class R6 shares, and there is no
minimum to add to an account.
The
Fund will waive the minimum investment requirements for certain employee benefit
plans and for certain financial intermediaries that submit orders on behalf of
their customers, although the intermediaries may impose their own minimum
investment requirements. The Fund may also reduce or waive the minimum
investment requirements under certain circumstances and on a case-by-case basis
if deemed to be in the best interest of the Fund.
You
may generally purchase, exchange or redeem shares of the Fund on any day the New
York Stock Exchange (NYSE) is open for business by written request (Madison
Funds, P.O. Box 219083, Kansas City, MO 64121-9083), by telephone
(1-800-877-6089), by contacting your financial professional, by wire (purchases
only) or, with respect to purchases and exchanges, online at
www.madisonfunds.com. Requests must be received in good order by the Fund or its
transfer agent prior to the close of regular trading of the NYSE in order to
receive that day's net asset value. Investors wishing to purchase or redeem
shares through a broker-dealer or other financial intermediary should contact
the broker-dealer or financial intermediary to learn how to place an
order.
Tax
Information
Dividends
and capital gains distributions you receive from the Fund are subject to federal
income taxes and may also be subject to state and local taxes, unless you are
tax-exempt or your account is tax-exempt or tax-deferred (in which case, such
distributions may be taxable upon withdrawal). Distributions from the Fund may
be taxed as ordinary income or long-term capital gains.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank or trust company), the Fund and the Fund’s
distributor or its affiliates may pay the intermediary for the sale of Fund
shares and related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your individual
financial adviser to recommend the Fund over another investment. No such
payments are made with respect to Class R6. Ask your individual financial
adviser or visit your financial intermediary’s website for more
information.
MADISON SUSTAINABLE
EQUITY FUND Fund Summary
|
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| Share
Class/Ticker: |
Class
Y - MFSYX |
Class
I - MFSIX |
| |
Investment
Objective
The
Madison Sustainable Equity Fund (the "Fund") seeks long-term capital
appreciation.
Fees and
Expenses
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and example
below.
|
|
|
|
|
|
|
|
| |
|
Shareholder
Fees: (fees
paid directly from your investment) |
Class
Y |
Class
I |
| Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
None |
None |
| Maximum
Deferred Sales Charge (Load) (as a percentage of amount
redeemed) |
None |
None |
| Redemption
Fee Within 30 days of Purchase (as a percentage of amount
redeemed) |
None |
None |
|
|
| |
|
Annual
Fund Operating Expenses: (expenses
that you pay each year as a percentage of the value of your
investment) |
Class
Y |
Class
I |
| Management
Fees |
0.70% |
0.70% |
| Distribution
and/or Service (Rule 12b-1) Fees |
None |
None |
| Other
Expenses |
0.21% |
0.11% |
| Total
Annual Fund Operating Expenses |
0.91% |
0.81% |
Example:
The following example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The example assumes
you invest $10,000 in the Fund for the time periods indicated and then redeem your
shares at the end of the period. The example also assumes that your investment
has a 5% return each year and that the Fund’s operating expenses remain the
same. Although your actual costs may be higher or lower, based on these
assumptions, your costs would be:
|
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|
|
|
|
|
|
|
| |
|
| 1
Year |
3
Years |
5
Years |
10
Years |
| Class
Y |
$93 |
$290 |
$504 |
$1,120 |
| Class
I |
83 |
259 |
450 |
1,002 |
Portfolio
Turnover
The Fund pays transaction costs, such as commissions, when it buys
and sells securities (or “turns over” its portfolio). A higher portfolio
turnover may indicate higher transaction costs and may result in higher taxes
when fund shares are held in a taxable account. These costs, which are not
reflected in total annual fund operating expenses or in the expense examples
above, affect the Fund’s performance. During the most recent fiscal year, the
Fund’s portfolio turnover rate was 34% of the average value of its
portfolio.
Principal Investment
Strategies
The
Fund will invest primarily in common stocks of high-quality, large cap companies
(generally, stocks with a market capitalization of greater than $10 billion)
that the Fund's investment adviser, Madison Asset Management, LLC ("Madison"),
believes incorporate sustainability into their overall strategy.
Under
normal conditions, at least 80% of the Fund's net assets (including borrowings
for investment purposes) will be invested in stocks that meet Madison's
fundamental and sustainability criteria.
The Fund's portfolio managers define “high-quality” companies as those
businesses that exhibit durable growth, operate in large growing markets, and
have strong competitive advantages with high barriers to entry
Stocks that meet these criteria are selected by using an integrated
research process that combines bottom-up fundamental analysis and sustainable
research. The research process analyzes a company’s
sustainable practices using quantitative and qualitative analysis and engagement
with the company.. The Fund may invest up to 30% of its assets in foreign
securities (including American Depositary Receipts ("ADRs") and emerging market
securities). To the extent invested in common stocks, the Fund generally invests
in only 30-50 companies at any given time. This reflects Madison's belief that
your money should be invested in Madison’s top investment ideas, and that
focusing on Madison’s highest conviction investment ideas is the best way to
achieve the Fund’s investment objective.
Madison
follows a rigorous multi-step process when evaluating companies for the Fund,
where Madison considers (1) the business model and overall strategy, (2) the
company’s sustainable business practices starting with corporate governance, (3)
the board of directors and the management team, and (4) the risk-reward of each
potential investment. When evaluating the business model and overall strategy,
Madison looks for durable competitive advantages, metrics that demonstrate
consistent or improving levels of return on capital, growing revenue and
earnings, and a solid balance sheet. When considering sustainable business
practices, the Fund's portfolio managers identify material factors by industry,
analyze corporate data and future targets, and engage with corporate management
to better understand the company's sustainable efforts and goals. The
sustainable research is combined with the fundamental research to develop an
integrated view and investment thesis. When assessing the board of directors and
the management team, Madison evaluates management's operational and capital
allocation track records and the board of directors' corporate governance record
including how the Board structures executive compensation. The final step in the
process is assessing the risk-reward for the stock when deciding to invest in a
company. Madison seeks to purchase securities trading at a discount to their
intrinsic value as determined by applying relative multiples to projected
earnings, discounted cash flows, and additional valuation methodologies. Often
Madison finds companies that meet our business model and sustainability criteria
but not our valuation hurdle. Those companies are monitored for inclusion later
when the price may be more appropriate.
Madison's
criteria for selecting sustainable investments will vary by industry and by
company. Madison uses a proprietary scoring system to assign an “above average,”
“average,” or “below average” rating to each company and monitors these ratings
across the portfolio. Madison will only invest in securities it determines are
"average" or “above average.” Madison primarily uses the services of
Sustainalytics US Inc., an independent, third-party service that provides
sustainability analytics and ratings. The Sustainalytics ratings are not
determinative, but one of many factors considered when making investment
decisions. Madison considers a number of sustainability metrics when reviewing a
company for the portfolio, which may include: carbon footprint; waste
management; water usage; diversity, equity, and inclusion; product safety; data
management; board composition; ethical standards; and regulatory issues. Madison
may also use research reports and other data when reviewing sustainable
investing opportunities.
Madison
may sell stocks for several reasons, including: (i) excessive valuation, (ii)
the fundamental business prospects for the company have materially changed,
(iii) the company no longer meets our sustainability criteria or inconsistent or
negative changes in sustainability practices or (iv) Madison finds a more
attractive alternative.
The
Fund’s investment strategy reflects Madison’s general “Participate and
Protect®”
investment philosophy. Madison’s expectation is that investors in the Fund
will participate in market appreciation during bull markets and experience
something less than full participation during bear markets compared with
investors in portfolios holding more speculative and volatile securities;
therefore, this investment philosophy is intended to represent a conservative
investment strategy. There is no assurance that Madison’s expectations regarding
this investment strategy will be realized.
Although
the Fund expects to pursue its investment objective utilizing its principal
investment strategies regardless of market conditions, the Fund may invest up to
100% in money market instruments. To the extent the Fund engages in this
temporary defensive position, the Fund’s ability to achieve its investment
objective may be diminished.
Principal
Risks
The
specific risks of owning the Fund are set forth below. You could
lose money as a result of investing in the
Fund. An investment in the Fund is not a deposit
of a bank and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency, entity or
person. The Fund’s share price and total return will
fluctuate. You should consider your own investment goals, time horizon and
risk tolerance before investing in the Fund.
Equity
Risk.
The Fund is subject to equity risk. Equity risk is the risk that securities held
by the Fund will fluctuate in value due to general market or economic
conditions, perceptions regarding the industries in which the issuers of
securities held by the Fund participate, and the circumstances and performance
of companies whose securities the Fund holds. In addition, while broad market
measures of common stocks have historically generated higher average returns
than fixed income securities, common stocks have also experienced significantly
more volatility in those returns.
Large
Cap Risk.
Large capitalization companies may fall out of favor with investors based on
market and economic conditions. In addition, larger companies may not be able to
attain the high growth rates of successful smaller companies and may be less
capable of responding quickly to competitive challenges and industry changes. As
a result, the Fund’s value may not rise as much as, or may fall more than, the
value of funds that focus on companies with smaller market
capitalizations.
Management
Risk. The
Fund is actively managed. The investment techniques and decisions of the
investment adviser and the Fund’s portfolio managers, including the investment
adviser’s assessment of a company’s sustainability profile when selecting
investments for the Fund, may not produce the desired results and may adversely
impact the Fund’s performance, including relative to other funds that do not
consider sustainability factors or come to different conclusions regarding such
factors.
Sustainable
Investment Risk. The Fund follows a sustainable investment approach by investing in
companies that embed sustainability in their overall strategy and demonstrate
adherence to sustainable business practices. In pursuing such a strategy, the
Fund may forgo opportunities to gain exposure to certain companies, industries,
or sectors, and may be overweight or underweight in certain industries or
sectors relative to its benchmark index, which may cause the Fund's performance
to be sensitive to developments affecting those sectors. In addition, since
sustainable investing takes into consideration factors beyond traditional
financial analysis, the investment opportunities for the Fund may be limited at
times. Sustainability related information provided by issuers and third parties,
upon which the portfolio managers may rely, continues to develop, and may be
incomplete, inaccurate, use different methodologies, or be applied differently
across companies and industries. Madison’s framework of sustainable investing
will vary from other managers. Further, the regulatory landscape for sustainable
investing in the United States is still developing and future rules and
regulations may require the Fund to modify or alter its investment process.
Similarly, government policies incentivizing companies to engage in sustainable
practices may fall out of favor, which could potentially limit the Fund’s
investment universe. There is also a risk that the companies identified through
the investment process may fail to adhere to sustainable business practices,
which may result in the Fund selling a security when it might otherwise be
disadvantageous to do so.
Foreign
Security and Emerging Market Risk. Investments in foreign securities, including investments in ADRs
and emerging market securities, involve risks relating to currency fluctuations
and to political, social, and economic developments abroad, as well as risks
resulting from differences between the regulations to which U.S. and foreign
issuers and markets are subject. These risks may be greater in emerging markets.
The investment markets of emerging countries are generally more volatile than
markets of developed countries with more mature economies.
Depository
Receipt Risk.
Depository receipts, such ADRs, may be issued in sponsored or un-sponsored
programs. In a sponsored program, a security issuer has made arrangements
to have its securities traded in the form of depository receipts. In an
un-sponsored program, the issuer may not be directly involved in the creation of
the program. Depository receipts involve many of the same risks as direct
investments in foreign securities. These risks include, but are not
limited to, fluctuations in currency exchange rates, which are affected by
international balances of payments and other financial conditions; government
interventions; and speculation. With respect to certain foreign countries,
there is the possibility of expropriation or nationalization of assets,
confiscatory taxation, political and social upheaval, and economic
instability. Investments in depository receipts that are traded over the
counter may also be subject to liquidity risk.
Growth
and Value Risks. Stocks with growth characteristics can experience sharp price
declines as a result of earnings disappointments, even small ones. Stocks with
value characteristics carry the risk that investors will not recognize their
intrinsic value for a long time or that they are appropriately priced at a low
level. Because the Fund generally follows a strategy of holding stocks with both
growth and value characteristics, any stock’s share price may be negatively
affected by either set of risks.
Mid
Cap Risk. In
addition to large-capitalization companies, the Fund may invest in
mid-capitalization companies, which may entail greater risks than investments in
larger, more established companies. Midsize companies tend to have narrower
product lines, fewer financial resources, and a more limited trading market for
their securities, as compared to larger companies. They may also experience
greater price volatility than securities of larger capitalization companies
because growth prospects for these companies may be less certain and the market
for such securities may be smaller. Some midsize companies may not have
established financial histories; may have limited product lines, markets, or
financial resources; may depend on a few key personnel for management; and may
be susceptible to losses and risks of
bankruptcy.
Capital
Gain Realization Risks to Taxpaying Shareholders. Because
of the focused nature of the Fund’s portfolio, the Fund is susceptible to
capital gain realization. In other words, when the Fund is successful in
achieving its investment objective, portfolio turnover may generate more capital
gains per share than funds that hold greater numbers of individual securities.
The Fund’s sale of just a few positions will represent a larger percentage of
the Fund’s assets compared with, say, a fund that has hundreds of securities
positions.
Market
Risk. The
share price of the Fund reflects the value of the securities it holds. If a
security’s price falls, the share price of the Fund will go down (unless another
security’s price rises by an offsetting amount). If the Fund’s share price falls
below the price you paid for your shares, you could lose money when you redeem
your shares.
Performance
The following bar chart and table provide some indication
of the risks of investing in the Fund. The bar chart shows how the Fund’s
investment results have varied from year to year. Because the
Fund's inception date was December 31, 2021, only two years of performance are
reflected in the bar chart and table. The table shows the Fund’s average annual
total returns for various periods compared to a broad measure of market
performance. The Fund’s past performance
(before and after taxes) is not necessarily an indication of its future
performance. Updated performance information current to the most
recent month end is available at no cost by visiting www.madisonfunds.com
or by calling 1-800-877-6089.
Calendar
Year Total Returns
for Class I Shares
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| |
|
|
|
| |
|
| Highest/Lowest
quarter end results during this period were: |
|
|
| Highest: |
4Q
2023 |
11.94% |
|
| Lowest: |
2Q
2022 |
-11.89% |
|
|
|
| |
Average Annual Total Returns
For Periods Ended December 31, 2023
|
|
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|
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|
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|
| |
|
| 1
Year |
Since
Inception 12/31/2021 |
|
Class
I Shares –
Return Before Taxes |
18.06% |
-1.39% |
|
Return
After Taxes on Distributions |
17.77% |
-1.57% |
|
Return
After Taxes on Distributions and Sale of Fund
Shares |
10.90% |
-1.06% |
|
Class
Y Shares
– Return Before Taxes |
17.95% |
-1.48% |
|
S&P
500®
Index
(reflects
no deduction for sales charges, account fees, expenses or
taxes) |
26.29% |
1.69% |
After-tax returns are
calculated using the highest historical individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown, and
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown only for Class I shares
and will vary for other share classes. Returns
after taxes on distributions and sale of Fund shares may be higher than other
returns for the same period due to the tax benefit of realizing a capital loss
on the sale of Fund shares.
Portfolio
Management
The
investment adviser to the Fund is Madison Asset Management, LLC. Maya Bittar,
CFA (Vice President and Portfolio Manager/Analyst) and Dave Geisler (Vice
President and Portfolio Manager/Analyst) have co-managed the Fund since December
2021.
Purchase
and Sale of Fund Shares
The
minimum investment amount to establish an account in Class Y shares is normally
$1,000 for non-retirement accounts and $500 for individual retirement and
education savings accounts, and the minimum to add to an account is $50. For an
account established with an automatic investment plan the minimum is $50 per
month to establish or add to an account. For accounts with Class I shares
serviced by the Fund’s transfer agent, the minimum investment amount is
$250,000, and there is no minimum to add to an account.
The
Fund will waive the minimum investment requirements for certain employee benefit
plans and for certain financial intermediaries that submit orders on behalf of
their customers, although the intermediaries may impose their own minimum
investment requirements. The Fund may also reduce or waive the minimum
investment requirements under certain circumstances and on a case-by-case basis
if deemed to be in the best interest of the Fund.
You
may generally purchase, exchange or redeem shares of the Fund on any day the New
York Stock Exchange (NYSE) is open for business by written request (Madison
Funds, P.O. Box 219083, Kansas City, MO 64121-9083), by telephone
(1-800-877-6089), by contacting your financial professional, by wire (purchases
only) or, with respect to purchases and exchanges, online at
www.madisonfunds.com. Requests must be received in good order by the Fund or its
transfer agent prior to the close of regular trading of the NYSE in order to
receive that day's net asset value. Investors wishing to purchase or redeem
shares through a broker-dealer or other financial intermediary should contact
the broker-dealer or financial intermediary to learn how to place an
order.
Tax
Information
Dividends
and capital gains distributions you receive from the Fund are subject to federal
income taxes and may also be subject to state and local taxes, unless you are
tax-exempt or your account is tax-exempt or tax-deferred (in which case, such
distributions may be taxable upon withdrawal). Distributions from the Fund may
be taxed as ordinary income or long-term capital gains.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank or trust company), the Fund and the Fund’s
distributor or its affiliates may pay the intermediary for the sale of Fund
shares and related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your individual
financial adviser to recommend the Fund over another investment. Ask your
individual financial adviser or visit your financial intermediary’s website for
more information.
MADISON MID CAP
FUND Fund Summary
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| Share
Class/Ticker: |
Class
A - MERAX |
Class Y -
GTSGX |
Class
I - MDCIX |
Class
R6 - MMCRX |
|
Investment
Objective
The
Madison Mid Cap Fund (the "Fund") seeks long-term capital
appreciation.
Fees and
Expenses
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and example
below.
You may qualify for Class A sales charge
discounts if you and your immediate family invest, or agree to invest in the
future, at least $25,000 in Madison
Funds.
More
information about these and other discounts is available from your financial
professional, in the “Sales Charges and Fees” section on page
65
of
the prospectus, in the “More About Purchasing and Selling Shares” section on
page
47 of the Funds' statement of additional information ("SAI") and in
the sales charge waiver appendix to this prospectus.
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| |
|
Shareholder
Fees: (fees
paid directly from your investment) |
Class
A |
Class
Y |
Class
I |
Class
R6 |
| Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
5.75% |
None |
None |
None |
| Maximum
Deferred Sales Charge (Load) (as a percentage of amount
redeemed) |
None |
None |
None |
None |
| Redemption
Fee Within 30 days of Purchase (as a percentage of amount
redeemed) |
None |
None |
None |
None |
|
|
|
|
| |
|
Annual
Fund Operating Expenses: (expenses
that you pay each year as a percentage of the value of your
investment) |
Class
A |
Class
Y |
Class
I |
Class
R6 |
|
Management
Fees1 |
0.73% |
0.73% |
0.73% |
0.73% |
| Distribution
and/or Service (12b-1) Fees |
0.25% |
None |
None |
None |
| Other
Expenses |
0.41% |
0.21% |
0.11% |
0.03% |
| Total
Annual Fund Operating Expenses |
1.39% |
0.94% |
0.84% |
0.76% |
1 The
management fee is 0.75% on assets up to $500 million, and reduced annually by
0.05% on assets exceeding $500 million, and by another 0.05% on assets exceeding
$1
billion.
Example:
The following example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The example assumes
you invest $10,000 in the Fund for the time periods indicated and then redeem your
shares at the end of the period. The example also assumes that your investment
has a 5% return each year and that the Fund’s operating expenses remain the
same. Although your actual costs may be higher or lower, based on these
assumptions, your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| 1
Year |
3
Years |
5
Years |
10
Years |
| Class
A |
$708 |
$990 |
$1,292 |
$2,148 |
| Class
Y |
96 |
300 |
520 |
1,155 |
| Class
I |
86 |
268 |
466 |
1,037 |
| Class
R6 |
78 |
293 |
509 |
1,131 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover may
indicate higher transaction costs and may result in higher taxes when fund
shares are held in a taxable account. These costs, which are not reflected in
total annual fund operating expenses or in the expense examples above, affect
the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio
turnover rate was 10% of the average value of its
portfolio.
Principal Investment
Strategies
The
Fund invests generally in common stocks, securities convertible into common
stocks and related equity securities of “midsize” companies (for this purpose,
“midsize” is defined as those companies with market capitalization of
between
$500 million and $70 billion).
Under normal market conditions, the
Fund will maintain at least 80% of its net assets (including borrowings for
investment purposes) in such mid cap securities. The Fund may also invest up to
25% of its assets in foreign securities (including American Depositary Receipts
("ADRs") and emerging market securities). As a non-principal
investment strategy, the Fund may also invest in exchange traded funds (“ETFs”)
that are registered investment companies, warrants, preferred stocks and debt
securities, including non-investment grade convertible debt securities. The Fund
generally holds 25-40 individual securities in its portfolio at any given time.
This reflects the belief of the Fund's investment adviser, Madison Asset
Management, LLC ("Madison"), that your money should be invested in Madison’s top
investment ideas, and that focusing on Madison's best investment ideas is the
best way to achieve the Fund’s investment objective.
The
Fund seeks attractive long-term returns through bottom-up security selection
based on fundamental analysis in a diversified portfolio of high-quality
companies with attractive valuations. These will typically be industry leading
companies in niches with strong growth prospects. The Fund’s portfolio managers
believe in selecting stocks for the Fund that show steady, sustainable growth
and reasonable valuation.
Madison
follows a rigorous three-step process when evaluating companies pursuant to
which Madison considers (1) the business model, (2) the management team, and (3)
the valuation of each potential investment. When evaluating the business model,
Madison looks for sustainable competitive advantages, metrics that demonstrate
relatively high levels of profitability, stable and growing earnings, and a
solid balance sheet. When assessing management, Madison evaluates its
operational and capital allocation track records and the nature of its
accounting practices. The final step in the process is assessing the proper
valuation for the company. Madison strives to purchase securities trading at a
discount to their intrinsic value as determined by discounted cash flows
modeling and additional valuation methodologies. Often, Madison finds companies
that clear the business model and management team hurdles, but not the valuation
hurdle. Those companies are monitored for inclusion at a later date when the
price may be more appropriate. Madison seeks to avoid the downside risks
associated with overpriced securities.
Madison
may sell stocks for a number of reasons, including: (i) the price target Madison
has set for the stock has been achieved or exceeded, (ii) the fundamental
business prospects for the company have materially changed, or (iii) Madison
finds a more attractive alternative.
The
Fund’s investment strategy reflects Madison’s general “Participate and
Protect®”
investment philosophy. Madison’s expectation is that investors in the Fund
will participate in market appreciation during bull markets and experience
something less than full participation during bear markets compared with
investors in portfolios holding more speculative and volatile securities;
therefore, this investment philosophy is intended to represent a conservative
investment strategy. There is no assurance that Madison’s expectations regarding
this investment strategy will be realized.
Although
the Fund expects to pursue its investment objective utilizing its principal
investment strategies regardless of market conditions, the Fund may invest up to
100% in money market instruments. To the extent the Fund engages in this
temporary defensive position, the Fund’s ability to achieve its investment
objective may be diminished.
Principal
Risks
The
specific risks of owning the Fund are set forth below. You could
lose money as a result of investing in the
Fund. An investment in the Fund is not a deposit
of a bank and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency, entity or
person. The Fund’s share price and total return will
fluctuate. You should consider your own investment goals, time horizon and
risk tolerance before investing in the Fund.
Mid
Cap Risk. The Fund’s investments in midsize companies may entail greater
risks than investments in larger, more established companies. Midsize companies
tend to have narrower product lines, fewer financial resources, and a more
limited trading market for their securities, as compared to larger companies.
They may also experience greater price volatility than securities of larger
capitalization companies because growth prospects for these companies may be
less certain and the market for such securities may be smaller. Some midsize
companies may not have established financial histories; may have limited product
lines, markets, or financial resources; may depend on a few key personnel for
management; and may be susceptible to losses and risks of
bankruptcy.
Equity
Risk. The Fund is subject to equity risk. Equity risk is the risk that
securities held by the Fund will fluctuate in value due to general market or
economic conditions, perceptions regarding the industries in which the issuers
of securities held by the Fund participate, and the circumstances and
performance of companies whose securities the Fund holds. In addition, while
broad market measures of common stocks have historically generated higher
average returns than fixed income securities, common stocks have also
experienced significantly more volatility in those
returns.
Growth
and Value Risks. Stocks with growth characteristics can experience sharp price
declines as a result of earnings disappointments, even small ones. Stocks with
value characteristics carry the risk that investors will not recognize their
intrinsic value for a long time or that they are appropriately priced at a low
level. Because the Fund generally follows a strategy of holding stocks with both
growth and value characteristics, any stock’s share price may be negatively
affected by either set of risks.
Capital
Gain Realization Risks to Taxpaying Shareholders. Because of the focused nature of the Fund’s portfolio, the Fund is
susceptible to capital gain realization. In other words, when the Fund is
successful in achieving its investment objective, portfolio turnover may
generate more capital gains per share than funds that hold greater numbers of
individual securities. The Fund’s sale of just a few positions will represent a
larger percentage of the Fund’s assets compared with, say, a fund that has
hundreds of securities positions.
Foreign
Security and Emerging Market Risk. Investments in foreign securities, including investments in ADRs
and emerging market securities, involve risks relating to currency fluctuations
and to political, social, and economic developments abroad, as well as risks
resulting from differences between the regulations to which U.S. and foreign
issuers and markets are subject. These risks may be greater in emerging markets.
The investment markets of emerging countries are generally more volatile than
markets of developed countries with more mature economies.
Depository
Receipt Risk. Depository receipts, such as American depository receipts (“ADRs”),
global depository receipts (“GDRs”), and European depository receipts (“EDRs”),
may be issued in sponsored or un-sponsored programs. In a sponsored
program, a security issuer has made arrangements to have its securities traded
in the form of depository receipts. In an un-sponsored program, the issuer
may not be directly involved in the creation of the program. Depository
receipts involve many of the same risks as direct investments in foreign
securities. These risks include, but are not limited to, fluctuations in
currency exchange rates, which are affected by international balances of
payments and other financial conditions; government interventions; and
speculation. With respect to certain foreign countries, there is the
possibility of expropriation or nationalization of assets, confiscatory
taxation, political and social upheaval, and economic instability.
Investments in depository receipts that are traded over the counter may also be
subject to liquidity risk.
Market
Risk. The share price of the Fund reflects the value of the securities it
holds. If a security’s price falls, the share price of the Fund will go down
(unless another security’s price rises by an offsetting amount). If the Fund’s
share price falls below the price you paid for your shares, you could lose money
when you redeem your shares.
Performance
The following
bar chart and table provide some indication of the risks of investing in the
Fund. The bar chart shows how the Fund’s investment results have varied from
year to year. The table shows the Fund’s average annual total
returns for various periods compared to a broad measure of market performance.
The Fund’s past performance
(before and after taxes) is not necessarily an indication of its future
performance. Updated performance information current to the most
recent month end is available at no cost by visiting www.madisonfunds.com
or by calling 1-800-877-6089.
Calendar Year Total
Returns for Class Y Shares
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| |
|
| Highest/Lowest
quarter end results during this period were: |
|
|
| Highest: |
2Q
2020 |
16.31% |
|
| Lowest: |
1Q
2020 |
-23.68% |
|
|
|
| |
Average Annual Total Returns
For Periods Ended December 31, 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| 1
Year |
5
Years |
10
Years |
Since
Inception 4/19/2013 |
Since
Inception 8/31/2020 |
|
Class
Y Shares –
Return Before Taxes |
26.50% |
15.07% |
10.97% |
N/A |
N/A |
|
Return
After Taxes on Distributions |
26.13% |
14.29% |
9.58% |
N/A |
N/A |
|
Return
After Taxes on Distributions and Sale of Fund
Shares |
15.95% |
12.03% |
8.54% |
N/A |
N/A |
|
Class
A Shares –
Return
Before Taxes |
18.59% |
13.20% |
9.87% |
10.94% |
N/A |
|
Class
I Shares –
Return
before Taxes |
26.56% |
N/A |
N/A |
N/A |
14.35% |
|
Class
R6 Shares –
Return
before Taxes |
26.63% |
15.27% |
11.23% |
N/A |
N/A |
|
Russell
Midcap® Index
(reflects no deduction for
sales charges, account fees, expenses or
taxes) |
17.23% |
12.68% |
9.42% |
10.78% |
10.55% |
After-tax returns are
calculated using the highest historical individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown, and
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
only for Class Y shares and will vary for other share classes.
Returns after taxes on
distributions and sale of Fund shares may be higher than other returns for the
same period due to the tax benefit of realizing a capital loss on the sale of
Fund shares.
Portfolio
Management
The
investment adviser to the Fund is Madison Asset Management, LLC. Richard
Eisinger (Co-Head of Investments and Portfolio Manager/Analyst), Haruki Toyama
(Head of Mid Cap and Large Cap Equity and Portfolio Manager/Analyst), and Andy
Romanowich, CFA (Vice President and Portfolio Manager/Analyst), co-manage the
Fund. Mr. Eisinger has served in this capacity since January 1998, Mr. Toyama
has served in this capacity since February 2015 and Mr. Romanowich has served in
this capacity since February 2019.
Purchase
and Sale of Fund Shares
The
minimum investment amount to establish an account in Class A and Class Y shares
is normally $1,000 for non-retirement accounts and $500 for individual
retirement education savings accounts, and the minimum to add to an account is
$50. For an account established with an automatic investment plan the minimum is
$50 per month to establish or add to an account. For accounts with Class I or R6
shares serviced by the Fund’s transfer agent, the minimum investment amount is
$250,000 for Class I shares and $500,000 for Class R6 shares, and there is no
minimum to add to an account.
The
Fund will waive the minimum investment requirements for certain employee benefit
plans and for certain financial intermediaries that submit orders on behalf of
their customers, although the intermediaries may impose their own minimum
investment requirements. The Fund may also reduce or waive the minimum
investment requirements under certain circumstances and on a case-by-case basis
if deemed to be in the best interest of the Fund.
You
may generally purchase, exchange or redeem shares of the Fund on any day the New
York Stock Exchange (NYSE) is open for business by written request (Madison
Funds, P.O. Box 219083, Kansas City, MO 64121-9083), by telephone
(1-800-877-6089), by contacting your financial professional, by wire (purchases
only) or, with respect to purchases and exchanges, online at
www.madisonfunds.com. Requests must be received in good order by the Fund or its
transfer agent prior to the close of regular trading of the NYSE in order to
receive that day's net asset value.
Investors
wishing to purchase or redeem shares through a broker-dealer or other financial
intermediary should contact the broker-dealer or financial intermediary to learn
how to place an order.
Tax
Information
Dividends
and capital gains distributions you receive from the Fund are subject to federal
income taxes and may also be subject to state and local taxes, unless you are
tax-exempt or your account is tax-exempt or tax-deferred (in which case, such
distributions may be taxable upon withdrawal).
Distributions
from the Fund may be taxed as ordinary income or long-term capital
gains.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank or trust company), the Fund and the Fund’s
distributor or its affiliates may pay the intermediary for the sale of Fund
shares and related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your individual
financial adviser to recommend the Fund over another investment. No such
payments are made with respect to Class R6.
Ask
your individual financial adviser or visit your financial intermediary’s website
for more information.
MADISON SMALL CAP
FUND Fund Summary
|
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|
|
|
|
|
|
|
|
|
|
|
|
| |
| Share
Class/Ticker: |
Class
A - MASMX |
Class
Y - BVAOX |
Class
I - MSCIX |
Class
R6 - MSCRX |
Investment
Objective
The
Madison Small Cap Fund (the "Fund") seeks long-term capital
appreciation.
Fees and
Expenses
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and example
below.
You may qualify for Class A sales charge
discounts if you and your immediate family invest, or agree to invest in the
future, at least $25,000 in Madison
Funds.
More
information about these and other discounts is available from your financial
professional, in the “Sales Charges and Fees” section on page
65
of
the prospectus, in the “More About Purchasing and Selling Shares” section on
page
47 of the Funds' statement of additional information ("SAI") and in
the sales charge waiver appendix to this prospectus.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Shareholder
Fees: (fees
paid directly from your investment) |
Class
A |
Class
Y |
Class
I |
Class
R6 |
| Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
5.75% |
None |
None |
None |
| Maximum
Deferred Sales Charge (Load) (as a percentage of amount
redeemed) |
None |
None |
None |
None |
| Redemption
Fee Within 30 days of Purchase (as a percentage of amount
redeemed) |
None |
None |
None |
None |
|
|
|
|
| |
|
Annual
Fund Operating Expenses:
(expenses
that you pay each year as a percentage of the value of your
investment) |
Class
A |
Class
Y |
Class
I |
Class
R6 |
| Management
Fees |
0.89% |
0.89% |
0.89% |
0.89% |
| Distribution
and/or Service (Rule 12b-1) Fees |
0.25% |
None |
None |
None |
| Other
Expenses |
0.21% |
0.21% |
0.11% |
0.03% |
| Total
Annual Fund Operating Expenses |
1.35% |
1.10% |
1.00% |
0.92% |
Example:
The following example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The example assumes
you invest $10,000
in
the Fund for the time periods indicated and then redeem your shares at the end
of the period. The
example
also assumes that your investment has a 5% return each year and that the Fund’s
operating expenses remain the same.
Although
your actual costs may be higher or lower, based on these assumptions, your costs
would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| 1
Year |
3
Years |
5
Years |
10
Years |
| Class
A |
$705 |
$978 |
$1,272 |
$2,015 |
| Class
Y |
112 |
350 |
606 |
1,340 |
| Class
I |
102 |
318 |
552 |
1,225 |
| Class
R6 |
94 |
293 |
509 |
1,131 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover may
indicate higher transaction costs and may result in higher taxes when fund
shares are held in a taxable account. These costs, which are not reflected in
total annual fund operating expenses or in the expense examples above, affect
the Fund’s performance. During the most recent fiscal year, the Fund's portfolio
turnover rate was 39% of the average value of its
portfolio.
Principal Investment
Strategies
The
Fund invests primarily in a diversified mix of common stocks of small cap U.S.
companies that are believed to be undervalued by various measures and offer
sound prospects for capital appreciation. For purposes of this Fund, “small cap”
is defined as those companies with market capitalization of between $100 million
and $15 billion. Under normal
market conditions, the Fund will maintain at least 80% of its net assets
(including borrowings for investment purposes) in small cap
securities.
The
Fund's investment adviser, Madison Asset Management, LLC ("Madison"), focuses on
core growth strategies through bottom-up fundamental research analysis to
identify stocks of businesses that are selling at what it believes are
substantial discounts to prices that accurately reflect their future earnings
prospects. Madison conducts extensive research on each prospective investment
using a five pillar analysis process to evaluate companies as potential
investments for the portfolio. Investments that meet most of the criteria are
added to a list of similar companies to be
monitored
by Madison. Companies meeting all five pillars may be added to the portfolio.
The five pillars of the analysis are: (1) strong business traits, (2) defendable
market niche, (3) attractive growth potential, (4) capable management, and (5)
discount to private market value. In reviewing companies, Madison applies the
characteristics identified above on a case-by-case basis as the order of
importance varies depending on the type of business or industry and the company
being reviewed. As a result of employing the five pillar analysis, the Fund may
hold cash opportunistically, particularly during periods of market uncertainty
when investments meeting all five pillars may be difficult to
identify.
Madison
may generally sell a security when it believes: (1) the security has achieved
its value potential; (2) such sale is necessary for portfolio diversification,
(3) changing fundamentals signal a deteriorating value potential; or (4) other
securities have a better value potential.
The
Fund’s investment strategy reflects Madison’s general “Participate and Protect®”
investment philosophy. Madison’s expectation is that investors in the Fund will
participate in market appreciation during bull markets and experience something
less than full participation during bear markets compared with investors in
portfolios holding more speculative and volatile securities; therefore, this
investment philosophy is intended to represent a conservative investment
strategy. There is no assurance that Madison’s expectations regarding this
investment strategy will be realized.
Although
the Fund expects to pursue its investment objective utilizing its principal
investment strategies regardless of market conditions, the Fund may invest up to
100% in money market instruments. To the extent the Fund engages in this
temporary defensive position, the Fund’s ability to achieve its investment
objective may be diminished.
Principal
Risks
The
specific risks of owning the Fund are set forth below. You could
lose money as a result of investing in the
Fund. An investment in the Fund is not a deposit
of a bank and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency, entity or
person. The Fund’s share price and total return will
fluctuate. You should consider your own investment goals, time horizon and
risk tolerance before investing in the Fund.
Small
Cap Risk—Price Volatility.
Due to its focus on small cap companies, the Fund may experience significant
volatility over time. Small companies tend to have narrower product lines, fewer
financial resources and a more limited trading market for their securities, as
compared to larger companies. The securities of smaller companies also
experience greater price volatility than securities of larger capitalization
companies.
Small
Cap Risk—Illiquidity.
During certain periods, the liquidity of the securities of small cap companies
may shrink or disappear suddenly and without warning as a result of adverse
economic or market conditions, or adverse investor perceptions. This liquidity
risk
could translate into losses for the Fund if it has to sell illiquid
securities at a disadvantageous time. The costs of purchasing or selling
securities of small capitalization companies are often greater than those of
more widely traded securities. Securities of smaller capitalization companies
can also be difficult to value.
Equity
Risk.
The Fund is subject to equity risk. Equity risk is the risk that securities held
by the Fund will fluctuate in value due to general market or economic
conditions, perceptions regarding the industries in which the issuers of
securities held by the Fund participate, and the circumstances and performance
of companies whose securities the Fund holds. In addition, while broad market
measures of common stocks have historically generated higher average returns
than fixed income securities, common stocks have also experienced significantly
more volatility in those returns.
Growth
and Value Risks.
Stocks with growth characteristics can experience sharp price declines as a
result of earnings disappointments, even small ones. Stocks with value
characteristics carry the risk that investors will not recognize their intrinsic
value for a long time or that they are appropriately priced at a low level.
Because the Fund generally follows a strategy of holding stocks with both growth
and value characteristics, any stock’s share price may be negatively affected by
either set of risks.
Capital
Gain Realization Risks to Taxpaying Shareholders. Because
of the focused nature of the Fund’s portfolio, the Fund is susceptible to
capital gain realization. In other words, when the Fund is successful in
achieving its investment objective, portfolio turnover may generate more capital
gains per share than funds that hold greater numbers of individual securities.
The Fund’s sale of just a few positions will represent a larger percentage of
the Fund’s assets compared with, say, a fund that has hundreds of securities
positions.
Market
Risk. The
share price of the Fund reflects the value of the securities it holds. If a
security’s price falls, the share price of the Fund will go down (unless another
security’s price rises by an offsetting amount). If the Fund’s share price falls
below the price you paid for your shares, you could lose money when you redeem
your shares.
Performance
The following
bar chart and table provide some indication of the risks of investing in the
Fund. The bar chart shows how the Fund’s investment results have varied from
year to year. The table shows the Fund’s average annual total
returns for various periods compared to different broad measures of market
performance. The Fund’s past performance
(before and after taxes) is not necessarily an indication of its future
performance. Performance results prior to August 30, 2019 for
the Class Y shares are based on the performance of the Broadview Opportunity
Fund (the "Predecessor Fund"), which was reorganized into the Class Y shares of
the Fund on August 30, 2019. Performance for Class A shares was deemed to be new
effective August 31, 2019 as a result of the reorganization. Madison waived
0.04% of the Fund's annual services fee from August 31, 2019 through December
31, 2020. Investment returns reflect this fee waiver, without which returns
would have been lower. Updated performance information current to the most
recent month end is available at no cost by visiting www.madisonfunds.com
or by calling 1-800-877-6089.
Calendar Year Total
Returns for Class Y Shares
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
|
| Highest/Lowest
quarter end results during this period were: |
|
|
| Highest: |
4Q
2020 |
27.61% |
|
| Lowest: |
1Q
2020 |
-28.96% |
|
|
|
| |
Average
Annual Total Returns
For
Periods Ended December 31, 2023
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| 1
Year |
5
Years |
10
Years |
Since
Inception 8/31/2019 |
Since
Inception 2/26/2021 |
Since
Inception 2/28/2022 |
|
Class
Y Shares –
Return Before Taxes |
16.05% |
10.18% |
5.70% |
N/A |
N/A |
N/A |
|
Return
After Taxes on Distributions |
15.97% |
7.46% |
2.10% |
N/A |
N/A |
N/A |
|
Return
After Taxes on Distributions and Sale of Fund
Shares |
9.56% |
7.65% |
3.03% |
N/A |
N/A |
N/A |
|
Class
A Shares –
Return
Before Taxes |
9.27% |
N/A |
N/A |
7.17% |
N/A |
N/A |
|
Class
I Shares –
Return
Before Taxes |
16.28% |
N/A |
N/A |
N/A |
-1.42% |
N/A |
|
Class
R6 Shares –
Return
Before Taxes |
16.38% |
N/A |
N/A |
N/A |
N/A |
-2.46% |
|
Russell
2000® Index
(reflects no deduction for
sales charges, account fees, expenses or
taxes) |
16.93% |
9.97% |
7.16% |
8.75% |
-1.53% |
1.01% |
|
Russell
2500™ Index
(reflects no deduction for
sales charges, account fees, expenses or
taxes) |
17.42% |
11.67% |
8.36% |
9.83% |
1.33% |
1.84% |
After-tax returns are
calculated using the highest historical individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown, and
after-tax returns are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
only for Class Y shares and will vary for other share classes.
Returns after taxes on
distributions and sale of Fund shares may be higher than other returns for the
same period due to the tax benefit of realizing a capital loss on the sale of
Fund shares.
Portfolio
Management
The
investment adviser to the Fund is Madison Asset Management, LLC. Aaron Garcia,
CFA (Vice President and Portfolio Manager/Analyst) and Faraz Farzam, CFA (Vice
President and Portfolio Manager/Analyst) have co-managed the Fund since August
2019. Messrs. Garcia and Farzam served as co-managers of the Predecessor Fund
since January 2010.
Purchase
and Sale of Fund Shares
The
minimum investment amount to establish an account in Class A and Class Y shares
is normally $1,000 for non-retirement accounts and $500 for individual
retirement and education savings accounts, and the minimum to add to an account
is $50. For an account established with an automatic investment plan the minimum
is $50 per month to establish or add to an account. For accounts with Class I or
R6 shares serviced by the Fund’s transfer agent, the minimum investment amount
is $250,000 for Class I shares and $500,000 for Class R6 shares, and there is no
minimum to add to an account.
The
Fund will waive the minimum investment requirements for certain employee benefit
plans and for certain financial intermediaries that submit orders on behalf of
their customers, although the intermediaries may impose their own minimum
investment requirements. The Fund may also reduce or waive the minimum
investment requirements under certain circumstances and on a case-by-case basis
if deemed to be in the best interest of the Fund.
You
may generally purchase, exchange or redeem shares of the Fund on any day the New
York Stock Exchange (NYSE) is open for business by written request (Madison
Funds, P.O. Box 219083, Kansas City, MO 64121-9083), by telephone
(1-800-877-6089), by contacting your financial professional, by wire (purchases
only) or, with respect to purchases and exchanges, online at
www.madisonfunds.com. Requests must be received in good order by the Fund or its
transfer agent prior to the close of regular trading of the NYSE in order to
receive that day's net asset value. Investors wishing to purchase or redeem
shares through a broker-dealer or other financial intermediary should contact
the broker-dealer or financial intermediary to learn how to place an
order.
Tax
Information
Dividends
and capital gains distributions you receive from the fund are subject to federal
income taxes and may also be subject to state and local taxes, unless you are
tax-exempt or your account is tax-exempt or tax-deferred (in which case, such
distributions may be taxable upon withdrawal). Distributions from the fund may
be taxed as ordinary income or long-term capital gains.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the fund through a broker-dealer or other financial
intermediary (such as a bank or trust company), the fund and the Fund’s
distributor or its affiliates may pay the intermediary for the sale of Fund
shares and related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your individual
financial adviser to recommend the fund over another investment. Ask your
individual financial adviser or visit your financial intermediary’s website for
more information.
MADISON INTERNATIONAL
STOCK FUND Fund Summary
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| Share
Class/Ticker: |
Class
A - MINAX |
Class
Y - MINYX |
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Investment
Objective
The
Madison International Stock Fund (the "Fund") seeks long-term growth of
capital.
Fees and
Expenses
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the table and example
below.
You may qualify for Class A sales charge
discounts if you and your immediate family invest, or agree to invest in the
future, at least $25,000 in Madison
Funds.
More
information about these and other discounts is available from your financial
professional, in the “Sales Charges and Fees” section on page
65
of
the prospectus, in the “More About Purchasing and Selling Shares” section on
page
47 of the Funds' statement of additional information ("SAI") and in
the sales charge waiver appendix to this prospectus.
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Shareholder
Fees: (fees
paid directly from your investment) |
Class
A |
Class
Y |
| Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
5.75% |
None |
| Maximum
Deferred Sales Charge (Load) (as a percentage of amount
redeemed) |
None |
None |
| Redemption
Fee Within 30 days of Purchase (as a percentage of amount
redeemed) |
None |
None |
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Annual
Fund Operating Expenses: (expenses
that you pay each year as a percentage of the value of your
investment) |
Class
A |
Class
Y |
| Management
Fees |
1.05% |
1.05% |
| Distribution
and/or Service (Rule 12b-1) Fees |
0.25% |
None |
| Other
Expenses |
0.31% |
0.31% |
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Total
Annual Fund Operating Expenses |
1.61% |
1.36% |
Example:
The following example is intended to help you compare the cost of
investing in the Fund with the cost of investing in other mutual
funds. The example assumes
you invest $10,000
in
the Fund for the time periods indicated and then redeem your shares at the end
of the period. The example also assumes that your investment has a 5% return
each year and that the Fund’s operating expenses remain the same. Although your
actual costs may be higher or lower, based on these assumptions, your costs
would be:
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| 1
Year |
3
Years |
5
Years |
10
Years |
| Class
A |
$729 |
$1,054 |
$1,401 |
$2,376 |
| Class
Y |
138 |
431 |
745 |
1,635 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover may
indicate higher transaction costs and may result in higher taxes when fund
shares are held in a taxable account. These costs, which are not reflected in
total annual fund operating expenses or in the expense examples above, affect
the Fund’s performance. During the most recent fiscal year, the Fund’s portfolio
turnover rate was 22% of the average value of its
portfolio.
Principal Investment
Strategies
Under
normal market conditions, the Fund invests at least 80% of its net assets
(including borrowings for investment purposes) in the stock of foreign
companies. For this purpose, a foreign company is one whose
principal operations are located outside the U.S., or that is organized outside
the U.S., whose securities are principally traded outside of the U.S., and/or
whose securities are quoted or denominated in a foreign currency. The types of
stocks that the Fund may invest in include common stocks, securities convertible
into common stocks, preferred stocks, and other securities representing equity
interests such as American Depositary Receipts (“ADRs”) (which represent an
interest in the shares of a non-U.S. company that have been deposited with a
U.S. bank, trade in U.S. dollars and clear through U.S. settlement systems, thus
allowing the holder of an ADR to avoid having to transact in a foreign
currency), European Depositary Receipts (“EDRs”), Global Depositary Receipts
(“GDRs”) and Swedish Depositary Receipts ("SDRs"). EDRs, GDRs and SDRs are
receipts evidencing an arrangement with a non-U.S. financial institution similar
to that for ADRs and are designed for use in non-U.S. securities markets.
The
Fund may also invest in debt securities, foreign money market instruments, and
other income bearing securities as well as forward foreign currency exchange
contracts and other derivative securities and contracts. The Fund usually holds
securities of issuers located in at least three countries other than the U.S.
and generally holds 40-70 individual securities in its portfolio at any given
time. Typically, a majority of the Fund’s assets are invested in relatively
large capitalization stocks of issuers located or operating in developed
countries. Such securities are those issued by companies located in countries
included in the Morgan Stanley Capital International All Country World Index ex
USA (“MSCI ACWI ex USA”) Index.
The
Fund may also invest up to 40% of its assets in securities of companies whose
principal business activities are located in emerging market countries; however,
the Fund’s exposure will typically be limited to within +/- 10% relative to the
benchmark (for this purpose,
the benchmark used is the MSCI ACWI ex USA Index, which as of December 31,
2023,
had 28.1% of
its assets invested in emerging market securities).
The growth style of equity management used by the Fund's investment adviser,
Madison Asset Management, LLC ("Madison"), emphasizes companies with sustainable
competitive advantages, secular long-term cash flow growth, returns on invested
capital above their cost of capital and the ability to manage for profitable
growth that can create long-term value for shareholders. In general, the Fund
seeks companies with the following characteristics, although not all of the
companies selected will have these attributes:
•High
secular growth.
•Superior
profitability.
•Medium
to large capitalizations, although there are no limitations on the size of the
companies in which the Fund may invest.
In
making investment decisions, Madison generally selects securities on the basis
of fundamental company-by-company analysis. In choosing securities, Madison will
typically focus on the market price of a company’s securities relative to its
evaluation of the company’s long-term earnings and cash flow potential. In
addition, a company’s valuation measures, including but not limited to
price-to-earnings ratio and price-to-book ratio, will customarily be
considered.
Although
the Fund expects to pursue its investment objective utilizing its principal
investment strategies regardless of market conditions, the Fund may invest up to
100% in money market instruments. To the extent the Fund engages in this
temporary defensive position, the Fund’s ability to achieve its investment
objective may be diminished.
Principal
Risks
The
specific risks of owning the Fund are set forth below. You could
lose money as a result of investing in the
Fund. An investment in the Fund is not a deposit
of a bank and is not insured or guaranteed by the Federal Deposit Insurance
Corporation or any other government agency, entity or
person. The Fund’s share price and total return will
fluctuate. You should consider your own investment goals, time horizon and
risk tolerance before investing in the Fund.
Foreign
Security and Emerging Market Risk.
Investing in foreign securities involves certain special considerations and
additional risks which are not typically associated with investing in securities
of domestic issuers or U.S. dollar denominated securities. These risks may make
the Fund more volatile than a comparable domestic stock fund. For example,
foreign securities are typically subject to:
• Fluctuations
in currency exchange rates.
• Higher
trading and custody charges compared to securities of U.S.
companies.
• Different
accounting and reporting practices than U.S. companies. As a result, it is often
more difficult to evaluate financial information from foreign issuers. Also, the
laws of some foreign countries limit the information that is made available to
investors.
• Less
stringent securities regulations than those of the U.S.
• Potential
political instability.
• Potential
economic instability. The economies of individual foreign countries may differ
favorably or unfavorably from the U.S. economy in such respects as growth of
gross national product, rate of inflation and industry diversification. Such
differences may cause the economies of these countries to be less stable than
the U.S. economy and may make them more sensitive to economic
fluctuations.
The
risks of international investing are greater in emerging markets
such as those of Latin America, Africa, Asia and Eastern Europe. The
investment markets of emerging countries are generally more volatile than
markets of developed countries with more mature economies.
Depository
Receipt Risk.
Depository receipts, such as American depository receipts (“ADRs”), global
depository receipts (“GDRs”), and European depository receipts (“EDRs”), may be
issued in sponsored or un-sponsored programs. In a sponsored program, a
security issuer has made arrangements to have its securities traded in the form
of depository receipts. In an un-sponsored program, the issuer may not be
directly involved in the creation of the program. Depository receipts
involve many of the same risks as direct investments in foreign
securities. These risks include, but are not limited to, fluctuations in
currency exchange rates, which are affected by international balances of
payments and other financial conditions; government interventions; and
speculation. With respect to certain foreign countries, there is the
possibility of expropriation or nationalization of assets, confiscatory
taxation, political and social upheaval, and economic instability.
Investments in depository receipts that are traded over the counter may also be
subject to liquidity risk.”
Equity
Risk.
The Fund is subject to equity risk. Equity risk is the risk that securities held
by the Fund will fluctuate in value due to general market or economic
conditions, perceptions regarding the industries in which the issuers of
securities held by the Fund participate, and the circumstances and performance
of companies whose securities the Fund holds. In addition, while broad market
measures of common stocks have historically generated higher average returns
than fixed income securities, common stocks have also experienced significantly
more volatility in those returns.
Growth
Investing Risk.
Stocks with growth characteristics can experience sharp price declines as a
result of earnings disappointments, even small ones. Because the Fund generally
follows a strategy of holding stocks with growth characteristics, any particular
stock’s share price may be negatively affected by this
risk.
Capital
Gain Realization Risks to Taxpaying Shareholders. Because
of the focused nature of the Fund’s portfolio, the Fund is susceptible to
capital gain realization. In other words, when the Fund is successful in
achieving its investment objective, portfolio turnover may generate more capital
gains per share than funds that hold greater numbers of individual securities.
The Fund’s sale of just a few positions will represent a larger percentage of
the Fund’s assets compared with, say, a fund that has hundreds of securities
positions.
Market
Risk. The
share price of the Fund reflects the value of the securities it holds. If a
security’s price falls, the share price of the Fund will go down (unless another
security’s price rises by an offsetting amount). If the Fund’s share price falls
below the price you paid for your shares, you could lose money when you redeem
your shares.
Performance
The following
bar chart and table provide some indication of the risks of investing in the
Fund. The bar chart shows how the Fund’s investment results have varied from
year to year. The table shows the Fund’s average annual total
returns for various periods compared to a broad measure of market performance.
The Fund’s past performance
(before and after taxes) is not necessarily an indication of its future
performance. Performance data presented below for all periods
prior to March 1, 2021, represents the performance of the previous subadviser.
Updated performance information current to the most recent month end is
available at no cost by visiting www.madisonfunds.com
or by calling 1-800-877-6089.
Calendar Year Total Returns for Class A Shares
(Returns do not reflect sales charges
and would be lower if they
did.)
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quarter end results during this period were: |
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| Highest: |
4Q
2020 |
15.12% |
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| Lowest: |
1Q
2020 |
-23.39% |
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Average Annual Total Returns
For Periods Ended December 31, 2023
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Year |
5
Years |
10
Years |
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Class
A Shares –
Return Before Taxes |
8.80% |
2.56% |
0.86% |
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Return
After Taxes on Distributions |
8.84% |
0.69% |
-0.15% |
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Return
After Taxes on Distributions and Sale of Fund
Shares |
5.38% |
2.05% |
0.81% |
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Class
Y Shares –
Return
before Taxes |
15.78% |
4.03% |
1.71% |
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MSCI
ACWI ex USA Index (net)
(reflects no deduction for
sales charges, account fees, expenses or
taxes) |
15.62% |
7.08% |
3.83% |
After-tax returns are
calculated using the highest historical individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown, and
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts.
After-tax returns are shown
only for Class A shares and will vary for other share classes.
Returns after taxes on distributions and sale of Fund
shares may be higher than other returns for the same period due to
the tax benefit of realizing a capital loss on the sale of Fund
shares.
Portfolio
Management
The
investment adviser to the Fund is Madison Asset Management, LLC. Thomas Tibbles,
CFA (Head of International Equity Team and Portfolio Manager), Patrick Tan
(Portfolio Manager/Analyst), and Alyssa Rudakas, CFA (Portfolio Manager/Analyst)
co-manage the Fund. Messrs. Tibbles and Tan, and Ms. Rudakas have served in this
capacity since February 2021.
Purchase
and Sale of Fund Shares
The
minimum investment amount to establish an account in Class A and Class Y shares
is normally $1,000 for non-retirement accounts and $500 for individual
retirement and education savings accounts, and the minimum to add to an account
is $50. For an account established with an automatic investment plan the minimum
is $50 per month to establish or add to an account.
The
Fund will waive the minimum investment requirements for certain employee benefit
plans and for certain financial intermediaries that submit orders on behalf of
their customers, although the intermediaries may impose their own minimum
investment requirements. The Fund may also reduce or waive the minimum
investment requirements under certain circumstances and on a case-by-case basis
if deemed to be in the best interest of the Fund.
You
may generally purchase, exchange or redeem shares of the Fund on any day the New
York Stock Exchange (NYSE) is open for business by written request (Madison
Funds, P.O. Box 219083, Kansas City, MO 64121-9083), by telephone
(1-800-877-6089), by contacting your financial professional, by wire (purchases
only) or, with respect to purchases and exchanges, online at
www.madisonfunds.com. Requests must be received in good order by the Fund or its
transfer agent prior to the close of regular trading of the NYSE in order to
receive that day's net asset value. Investors wishing to purchase or redeem
shares through a broker-dealer or other financial intermediary should contact
the broker-dealer or financial intermediary to learn how to place an
order.
Tax
Information
Dividends
and capital gains distributions you receive from the Fund are subject to federal
income taxes and may also be subject to state and local taxes, unless you are
tax-exempt or your account is tax-exempt or tax-deferred (in which case, such
distributions may be taxable upon withdrawal). Distributions from the Fund may
be taxed as ordinary income or long-term capital gains.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase shares of the Fund through a broker-dealer or other financial
intermediary (such as a bank or trust company), the Fund and the Fund’s
distributor or its affiliates may pay the intermediary for the sale of Fund
shares and related services. These payments may create a conflict of interest by
influencing the broker-dealer or other intermediary and your individual
financial adviser to recommend the Fund over another investment. Ask your
individual financial adviser or visit your financial intermediary’s website for
more information.
ADDITIONAL
RISKS
Unknown
Market Risks
Investing
in the Funds involves risk. In addition to the other risks described in this
prospectus, you should understand what we refer to as “unknown market risks.”
While investments in stocks and bonds have been keystones in wealth building and
management for over a hundred years, at times these investments have produced
surprises for even the savviest investors. Those who enjoyed growth and income
of their investments were rewarded for the risks they took by investing in the
markets. When the rare calamity strikes, the word “security” itself seems a
misnomer. Although we seek to appropriately address and manage the risks we have
identified in this prospectus, 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 and, therefore, have not identified in this
prospectus. We certainly seek to identify all applicable risks and then
appropriately address them, take appropriate action to reasonably manage them
and, of course, 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 you must consider in connection with your investment in the
Funds. Unforeseen events have the potential to upset the best laid plans, and
could, under certain circumstances, produce a material loss of the value of some
or all of your investments.
Recent
Market Events
U.S.
and international markets have experienced and may continue to experience
significant periods of volatility in recent months and years due to a number of
economic, political and global macro factors including uncertainty regarding
inflation and interest rate levels, the possibility of a national or global
recession, problems in the banking sector, trade tensions, political events,
wars between Russia and Ukraine and in the Middle East, and the impact of the
coronavirus (COVID-19) global pandemic. These developments, as well as other
events, could result in further market volatility and negatively affect
financial asset prices, the liquidity of certain securities and the normal
operations of securities exchanges and other markets, despite government efforts
to address market disruptions. Continuing market volatility as a result of
recent market conditions or other events may have adverse effects on your
account.
Cybersecurity
Risk
The
computer systems, networks and devices used by the Funds and their service
providers to carry out routine business operations employ a variety of
protections designed to prevent damage or interruption from computer viruses,
network failures, computer and telecommunication failures, infiltration by
unauthorized persons and security breaches. Despite the various
protections utilized by the Funds and their service providers, systems,
networks, or devices potentially can be breached. The Funds and their
respective shareholders could be negatively impacted as a result of a
cybersecurity breach. Cybersecurity breaches can include, but are not
limited to, gaining unauthorized access to digital systems, networks or devices
(e.g., through “hacking” or malicious software coding) for purposes of
misappropriating assets or sensitive information; infection from computer
viruses, corrupting data or other malicious software code; and attacks that shut
down, disable, slow, or otherwise disrupt operations, business processes, or
website access or functionality. Cybersecurity breaches may cause
disruptions and impact a fund’s business operations, potentially resulting in
financial losses; interference with a fund’s ability to calculate its NAV;
impediments to trading; the inability of a fund, its investment advisor or
subadviser, as applicable, and other service providers to transact business;
violations of applicable privacy and other laws; regulatory fines; penalties,
reputational damage, reimbursement or other compensation costs, or additional
compliance costs; as well as the inadvertent release of confidential
information. In addition, substantial costs may be incurred in order to prevent
any cyber incidents in the future. While the Funds’ service providers have
established business continuity plans in the event of, and risk management
systems to prevent, such cyber incidents, there are inherent limitations in such
plans and systems including the possibility that certain risks have not been
identified. Furthermore, the Funds cannot control the cyber security plans and
systems put in place by its service providers or any other third parties whose
operations may affect the Funds or their shareholders. The Funds and their
shareholders could be negatively impacted as a result.
Fixed-Income
Market Capacity Risk
While
assets in bond mutual funds and ETFs have grown rapidly, dealer capacity in the
fixed income markets appears to have undergone fundamental changes. Primary
dealer inventories as a percentage of total bonds outstanding are at very low
levels. This apparent reduction in market-making capacity may be a persistent
change, to the extent it is resulting from broader structural changes such as
fewer proprietary trading desks at broker-dealers and increased regulatory
capital requirements at the holding company level. A significant reduction
in dealer market-making capacity has the potential to decrease liquidity and
increase volatility in the fixed income markets at times. Therefore, our Funds
with income distributions objectives seek to invest in larger, more liquid
issues. However, structural changes may cause trading in even the most liquid of
issues to become challenged at times. This could negatively affect the price of
these securities and the value of an investment in the Fund.
Management
Risk
Each
Fund is subject to management risk as an actively-managed investment portfolio
and depends on the decisions of the co-portfolio managers to produce the desired
results.
YOUR
ACCOUNT
The
following pages describe the share classes offered through this prospectus, and
explain how you can invest with Madison Funds®
(“Madison Funds,” the "Funds," or the “Trust”). You may generally open an
account and purchase shares of the Funds through financial intermediaries, such
as mutual fund supermarkets, retirement plan record keepers, or brokers-dealers
who are authorized to sell shares of the Funds (individually a "financial
intermediary," and collectively, "financial intermediaries"). You may also
purchase shares directly from the Funds' transfer agent.
Note:
most of the information on how to open an account and how to purchase, exchange,
or sell shares that follows will not be relevant to you if you invest in the
Funds through a financial intermediary.
Financial intermediaries may require the payment of fees from their individual
clients, which may be different from those described in this prospectus, and may
also have policies and procedures that are different than those contained in
this prospectus. For example, they may charge transaction fees or set different
minimum investment amounts. Investors should consult their financial
intermediary regarding its procedures for purchasing and selling shares of the
Funds as the policies and procedures may be different. If you have such an
account, contact your financial intermediary and they will be able to assist
you.
Regardless
of the type of account, the first step to investing in Madison Funds is to
carefully read this entire
prospectus.
Who
Can Invest in the Funds?
In
general, to invest in the Funds, you should be an adult US citizen or resident
or a US entity with a US tax identification (social security or employer
identification) number. You or the person authorized to place transactions on
your behalf may not place transactions in your account for the benefit of any
person other than yourself (except for a transfer of shares to another account).
If the Funds determine that the registered owner of an account has permitted
another person or entity who is not the registered or beneficial owner of the
account to hold shares through that account, the Funds may reject future
purchases in that account and any related accounts. The Funds may only be sold
in states where they are notice filed or registered. Some funds and share
classes appearing in this prospectus may not be available for purchase in all
jurisdictions. The Funds sell shares to investors residing outside the US only
in limited circumstances. Any sale to an investor residing outside of the US
requires prior approval of the Funds.
Share
Class Availability
The
Trust offers five classes of shares through this prospectus: Class A, Class C,
Class Y, Class I and Class R6. Not all share classes are offered by all funds.
Each share class offered within a fund represents investments in the same
portfolio of securities, but each class has its own expense structure, which
allows you to choose the one that best meets your needs. For a description of
the expenses imposed on each class, please see the “Fund Summaries - Fees and
Expenses” section for the fund in which you are interested. The various share
classes are described in more detail below.
When
deciding which share class is best for you, carefully consider:
•how
long you plan to own the fund shares;
•how
much you intend to invest;
•the
total expenses you’ll pay for each class; and
•whether
you qualify for any reduction or waiver of sales charges.
Class
A Shares.
Class
A shares typically charge a front-end sales charge or “load” that is deducted
from your initial investment. Often, Class A shares offer you discounts (the
discount increases as the size of your investment increases), called
“breakpoints,” on the front-end sales charge if you make a large purchase,
already hold other mutual funds offered by the same fund family, or have family
members (or others with whom you may link according to fund rules) who hold
funds in the same fund family. Class A shares also charge a 0.25% Rule 12b-1
service fee that, over time, will increase the cost of investing.
Class
C
Shares.
Class C shares do not impose a front-end sales charge that is deducted from your
initial investment, but they do impose Rule 12b-1 distribution fees of 0.75% and
service fees of 0.25% that will result in higher annual operating expenses than
you would incur if you purchased Class A shares. Over time, these fees will
increase the cost of investing and may make the Class C charges more than those
for Class A shares. For this reason and others, Madison Funds does not normally
accept purchase orders of more than $999,999 for Class C shares from a single
investor. Class C shares impose a CDSC, which you pay if you sell your shares
within one year of purchase. Class C shares do not convert to any other share
class.
Class
Y Shares. Class
Y shares do not impose a front-end sales charge or CDSC, and are not subject to
any Rule 12b-1 distribution or service fees. Class Y shares are generally
purchased directly through the Funds' transfer agent by individuals and entities
that are not assisted by a financial adviser, and by investors who purchase
shares through financial intermediaries who have entered into an agreement with
the Funds' distributor or Madison to offer fund shares through a managed account
or fee-based program or to brokerage accounts held on a network or platform that
submit orders on behalf of their clients.
Class
I Shares. Class
I shares do not impose a front-end sales charge or CDSC, and are not subject to
any Rule 12b-1 distribution or service fees. Class I shares are generally
available for purchase through participating employee benefit plans, and through
certain other accounts registered to trust companies and bank trust departments,
and certain eligible qualifying investment product platforms offered by
financial intermediaries who have entered into an agreement with the Funds'
distributor or Madison. Class I shares offered through such plans, accounts and
platforms are generally maintained on the books of the Funds' transfer agent at
an omnibus level. Investment minimums for any such plans, accounts, and
platforms are set by the policies of those offering such shares. Class I shares
are also available for purchase by individuals, trusts, estates, charitable
organizations, corporations (including affiliated and unaffiliated investment
companies), endowments, foundations and other investors who purchase shares
directly from the Funds' transfer agent with a minimum initial investment of
$250,000, and no minimum to add to an account.
Class
R6 Shares.
Class R6 shares do not impose a front-end sales charge or CDSC, and are not
subject to any Rule 12b-1 distribution or service fees. Class R6 shares do not
make any payments to financial intermediaries from fund assets, nor from the
Funds' distributor or Madison and its affiliates. Class R6 shares are available
for purchase through participating retirement plans (401(k) plans, 457 plans,
employer-sponsored 403(b) plans, profit-sharing and money purchase pension
plans, defined benefit plans and non-qualified deferred compensation plans), and
through certain other accounts registered to trust companies and bank trust
departments and certain eligible qualifying investment product platforms offered
by financial intermediaries under a signed agreement with the Funds'
distributor. Class R6 shares offered through such plans, accounts and platforms
are generally maintained on the books of the Funds' transfer agent at an omnibus
level. Investment minimums for any such plans, accounts, and platforms are set
by the policies of those offering such shares. Class R6 shares are available for
purchase by corporations (including affiliated and unaffiliated investment
companies), and other institutional investors, such as trusts, endowments and
foundations, with a minimum initial investment of $500,000, and there is no
minimum to add to an account.
Class
R6 shares are generally not available to retail non-retirement accounts,
traditional and Roth individual retirement accounts (IRAs), Coverdell Education
Savings Accounts, SEPS, SARSEPs, SIMPLE IRAs or individual 403(b) plans. Class
R6 shares are also not available for purchase under circumstances where the
Funds’ distributor or Madison is contractually required to pay any commissions,
account servicing fees, record keeping fees, sub-transfer agent fees or other
asset-based or sales-based fees to a financial intermediary. Please refer to the
SAI for more information regarding the availability of Class R6
shares.
Each
individual’s investment needs are different. You should speak with your
financial adviser to review your investment objectives, which will help you
decide which share class is right for you.
Investment
Minimums
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| Minimum
Investments |
Class
A |
Class
C |
Class
Y |
Class
I |
Class
R6 |
| To
open an account: |
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| Non-Retirement
account: |
$1,000 |
$1,000 |
$1,000 |
$250,000 |
$500,000 |
| Individual
Retirement account: |
$500 |
$500 |
$500 |
$250,000 |
N/A |
| Education
Savings account: |
$500 |
$500 |
$500 |
N/A |
N/A |
| To
add to an account: |
$50 |
$50 |
$50 |
No
minimum |
No
minimum |
The
Funds will waive the initial minimum investment to open an account for Class A,
Class C and Class Y shares if you invest through an Automatic Investment Plan.
See “Additional Investor Services – Automatic Investment Plan.”
The
Funds have no minimum investment requirements for all share classes for: (1)
accounts funded with pre-tax or salary reduction contributions which include
SEPs, 401(k) plans, non-qualified deferred compensation plans, and other pension
and profit sharing plans; (2) for shares purchased by affiliated and
unaffiliated investment companies; or (3) for investors who purchase shares
through financial intermediaries who have entered into an agreement with the
Funds' distributor or Madison to offer fund shares (i) through a managed account
or fee-based program; or (ii) through accounts held on a network or platform
that submit orders on behalf of their clients; and (iii) where the intermediary
holds shares through an omnibus account. If you invest through a financial
intermediary, the intermediary may impose their own minimum investment
requirements.
The
Funds may also reduce or waive the minimum investment requirements under certain
circumstances and on a case-by-case basis if deemed to be in the best interest
of the Funds. Please refer to the SAI for more information regarding the waiver
of investment minimums of Class I and Class R6 shares.
How
to Contact Us
You
can reach a Madison Funds shareholder services representative by calling
1-800-877-6089 weekdays, 8:00 a.m. to 7:00 p.m. Central time. Mail all general
inquiries, new account applications and transaction requests as
follows:
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Regular
Mail: |
Express,
Certified or Registered Mail: |
Madison
Funds
P. O. Box 219083
Kansas City, MO 64121-9083 |
Madison
Funds
430
W 7th
Street, STE 219083
Kansas
City, MO 64105-1407 |
Opening
an Account
1. Carefully
read this prospectus.
2. Determine
how much you want to invest.
3. Carefully
complete the appropriate parts of the account application, including the account
privileges section of the application. By applying for privileges now, you can
avoid the delay and inconvenience of having to file an additional form if you
want to add privileges later. If you have questions, please contact your
financial adviser or the Trust.
When
opening a new account, the Funds are required by law to obtain certain personal
information from you to verify your identity, including name, address, date of
birth, and other information that will allow us to identify you. If you do not
provide the information, the Funds’ transfer agent, on behalf of the Funds, may
not be able to open your account. If the transfer agent is unable to verify your
identity, the Funds' reserve the right to close your account or take such other
action deemed reasonable or required by law.
Purchasing
Shares
The
following explains how to purchase shares by check, wire, phone, exchange or
Internet. You may purchase shares at any time by complying with the minimum
investment requirements described in “FUND SUMMARIES—Purchase and Sale of Fund
Shares.” Upon request, your shares will be purchased at the next net asset value
(“NAV”) calculated after your order is accepted in good order by the Fund. “Good
order” means that the request includes the information described in the table
below.
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| OPENING
AN ACCOUNT |
ADDING
TO AN ACCOUNT |
| BY
CHECK |
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Make
out a check for the investment, payable to Madison Funds. |
Make
out a check for the investment amount, payable to Madison
Funds. |
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Deliver
the check and your completed application to your financial adviser or mail
to Madison Funds. |
Complete
the detachable investment slip from your account statement. If no slip is
available, send a letter specifying the fund name, share class, your
account number, the name in which the account is registered, and the
amount of your investment to be sent by check. Mail to Madison
Funds. |
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A
charge of $30 will be assessed for each returned check
occurrence. |
| BY
WIRE |
|
Deliver
your completed application to your financial adviser or mail to Madison
Funds. |
Call
Madison Funds at 1-800-877-6089. Provide the fund name, share class, your
account number, the name in which the account is registered, and the
amount of your investment to be sent by wire. |
| Obtain
your account number by calling your financial adviser or Madison Funds at
1-800-877-6089. Instruct your financial institution to wire the amount of
your investment to State Street Bank & Trust Company. |
Instruct
your financial institution to wire the amount of your investment to State
Street Bank & Trust Company:
ABA#:
0110-0002-8
FBO:
Madison Funds
DDA#:
9905-510-5 FBO: (Shareholder name/account number) |
| BY
PHONE |
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Not
currently available. |
Call
Madison Funds at 1-800-877-6089 to verify that these features are in place
on your account. You are automatically eligible to purchase shares by
phone, upon set-up of ACH electronic funds transfer, unless you indicate
otherwise in the account options section of your
application. |
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To
place your purchase, call Madison Funds at 1-800-877-6089, or use our
automated touchtone service 24-hours a day. |
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BY
EXCHANGE
(Available
for most accounts and amounts that meet fund minimums.) |
|
Make
sure that you have a current prospectus for the Madison Funds, which can
be obtained by calling your financial adviser or Madison Funds at
1-800-877-6089. |
Make
sure that you have a current prospectus for the Madison Funds, which can
be obtained by calling your financial adviser or Madison Funds at
1-800-877-6089. |
|
Call
your financial adviser, Madison Funds at 1-800-877-6089, or use the
Internet at www.madisonfunds.com to request an exchange. You can only open
up a new fund position in an existing account by exchange. |
Call
your financial adviser, Madison Funds at 1-800-877-6089, or use the
Internet at www.madisonfunds.com to request an
exchange. |
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BY
INTERNET
(Access
24 hours a day at www.madisonfunds.com.) |
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You
cannot open a new account on the Internet. |
Call
Madison Funds at 1-800-877-6089 to verify that these features are in place
on your account. You are automatically eligible to purchase shares upon
set-up of ACH electronic funds transfer, unless you indicate otherwise in
the account options section of your application. Alternatively, you may
check your profile on the Internet. The feature will be activated if you
are eligible to purchase shares. |
Purchase
orders received in good order by the Funds after the close of regular trading on
the New York Stock Exchange
(usually 4:00 p.m., Eastern Time), will be
processed using the next day’s NAV.
Purchasing
by Exchange
Within
an account, you may exchange shares of one fund for shares of the same class of
another fund subject to the minimum investment requirements of the fund
purchased, without paying any additional sales charge. Exchanges of Class C
shares will continue to “age” from the date of original purchase of the Class C
shares, respectively, and will retain the same CDSC rate as they had before the
exchange.
Except
as may be approved by the Chief Compliance Officer of the Funds, only five (5)
exchanges are allowed per fund in a calendar year. If you establish a systematic
exchange or automatic account rebalancing program (see the “Your Account
-Additional Investor Services” section), those exchanges are not included in the
exchange limit or redemption fee policies. The Funds reserve the right to
require that previously exchanged shares (and reinvested dividends) be in a fund
for 90 days before an investor is permitted a new exchange. A fund may change
its exchange policy at any time upon 60 days’ notice to its
shareholders.
It
is important to note that additional restrictions may apply if you invest
through an intermediary. The Trust will work with intermediaries to apply the
Funds’ exchange limit guidelines, but in some instances, the Funds are limited
in their ability to monitor the trade activity or enforce the Funds’ exchange
limit guidelines in such accounts. In addition, a different exchange limit may
apply for accounts held by certain institutional retirement plans to conform to
plan exchange limits.
Please
refer to the SAI, for additional details regarding exchanges and moving
investments in certain share classes to different share classes.
Sales
Charges and Fees
The
following discussion explains how sales charges on your purchases of a fund are
calculated. Before investing in mutual funds, it is important that you
understand the sales charges that you will be charged.
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| Conservative
Allocation Fund |
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| Moderate
Allocation Fund |
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| Aggressive
Allocation Fund |
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| Diversified
Income Fund |
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| Covered
Call & Equity Income Fund |
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Income Fund |
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Fund |
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Cap Fund |
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Cap Fund |
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| International
Stock Fund |
| Core
Bond Fund |
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| Sales
Charge as a % of: |
Dealer
Commission as a % of Offering Price2 |
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| Sales
Charge as a % of: |
Dealer
Commission as a % of Offering Price2 |
| Investment
Amount: |
Offering
Price1 |
Net
Amount Invested |
| Investment
Amount: |
Offering
Price1 |
Net
Amount Invested |
| Under
$25,000 |
5.75% |
6.10% |
5.00% |
| Under
$50,000 |
4.50% |
4.71% |
4.00% |
| $25,000
to $49,999 |
5.00% |
5.26% |
4.50% |
| $50,000
to $99,999 |
4.50% |
4.71% |
4.00% |
| $50,000
to $99,999 |
4.00% |
4.17% |
3.50% |
| $100,000
to $249,999 |
3.50% |
3.63% |
3.00% |
| $100,000
to $249,999 |
3.50% |
3.63% |
3.00% |
| $250,000
to $499,999 |
2.50% |
2.56% |
2.00% |
| $250,000
to $499,999 |
2.50% |
2.56% |
2.00% |
| $500,000
to $999,999 |
1.50% |
1.52% |
1.20% |
| $500,000
to $999,999 |
1.50% |
1.52% |
1.20% |
| $1
million or more and certain other investments described below |
None3 |
None |
See
Below4 |
| $1
million or more and certain other investments described below |
None3 |
None |
See
Below4 |
1
The
term "offering price" includes the front-end sales charge. The sales charge you
pay may be higher or lower than what is disclosed due to standard industry
practice to round the public offering price to two decimal places when
calculating the number of shares purchased, and to round the number of shares
purchased to three decimal places. Please refer to the SAI for additional
information.
2 The
portion of the sales charge the Funds' distributor, MFD Distributor, LLC
(“MFD”), or its agent pays to broker/dealers for selling the Funds’ shares. The
broker/dealer passes along a portion of this compensation to your financial
adviser. From time to time, MFD, at its discretion, may pass along to the
broker/dealers the entire sales charge paid as a percentage of offering price as
part of a sales program, although it has not done so as of the date of this
prospectus.
3 A
CDSC may be assessed on certain purchases of Class A shares over $1,000,000 at a
rate of 1.00% in the first year and 0.50% in the second year following the
purchase.
4 MFD
may pay a commission up to 0.80% on certain purchases of Class A shares over
$1,000,000 on which no initial sales charge was paid, with a maximum commission
of 0.50% on purchases over $3,000,000.
Generally,
as the amount of purchase increases, the percentage used to determine the sales
load decreases. In addition to a single mutual fund purchase, you may be
entitled to receive a discount or qualify to purchase Class A shares without a
sales charge based on rights of accumulation or by using a letter of intent as
described below.
Class
A Sales Charge Discounts and Waivers.
The availability of certain Class A sales charge discounts and waivers will
depend on whether you purchase your shares directly from the Funds or through an
intermediary. It is possible that certain intermediaries may not, in accordance
with their policies and procedures, be able to offer one or more of these sales
charge discounts or waiver privileges. In addition, certain intermediaries may
have different policies and procedures regarding the availability of front-end
sales charge discounts and waivers (See Appendix - Sales Charge Waivers, which
includes information about specific sales charge discounts or waivers applicable
to the intermediaries identified therein). In all instances, you will need to
notify the Funds or your intermediary at the time of purchase of any
relationship or other facts qualifying you for sales charge discounts or
waivers. For discounts and waivers not available through a particular
intermediary, you will have to purchase fund shares directly from the Funds or
through another intermediary to receive these discounts or waivers. Madison
Funds may require evidence, and reserves the right to request additional
documentation, to verify you are eligible for a discount or waiver of sales
charges. Please consult your intermediary for further information.
The
term “immediate family” referenced below, is defined as the investor's spouse or
domestic partner as recognized by applicable state law and children under the
age of 21.
Class
A Sales Charge Reductions.
There
are several ways investors and certain qualified pension plans may combine
multiple purchases to reduce Class A sales charges as indicated below. For the
purpose of calculating the sales charge, reinvestment or cross-reinvestment from
another fund having paid a sales charge qualify,
Rights
of Combination. Purchases
may be combined to reduce Class A sales charges if made by:
• you
and your immediate family for your own account(s), including individual
retirement, custodial and personal trust accounts;
• a
trustee or other fiduciary purchasing for a single trust, estate or fiduciary
account; and
• groups
which qualify for the Group Investment Program as described in the
SAI.
Rights
of Accumulation. You
may add the current market value of your existing holdings in any fund and class
of shares of Madison Funds (including combinations), to the amount of your next
purchase of Class A shares to qualify for reduced sales charges. The current
value of an existing investment in a variable annuity contract sponsored by CMFG
Life Insurance Company may also be taken into account to determine your Class A
sales charges.
Letter
of Intent.
You
may purchase Class A shares of a fund over a 13-month period and receive the
same sales charge as if all shares had been purchased at once by signing a
Letter of Intent (“LOI”). Such an investment must aggregate at least $25,000 if
investing in equity funds or at least $50,000 if investing in the Core Bond Fund
during the 13-month period from the date of the LOI. The LOI period starts on
the date on which your first purchase is made toward satisfying the LOI. Your
accumulated holdings (including combination and accumulation as described above)
eligible to be aggregated as of the day immediately before the start date of the
LOI period may be credited towards satisfying the LOI. For the purposes of
calculating if the total investment amount specified in the LOI has been met,
the historical cost of the original shares purchased will be used, and
reinvested dividends and capital gains and appreciation of your holdings are not
included. A small portion of the initial purchase (approximately 5% of the
aggregate) will be held in escrow to cover the difference in Class A sales
charges that may be due if your total investments over the 13-month period do
not qualify for the sales charge reduction you received. The escrowed shares
will be released upon completion of the LOI or at the end of the 13-month
period, whichever comes first. If you are using historical cost to qualify for a
reduced sales charge, you should retain any records to substantiate your
historical costs since the Funds, their transfer agent, or your broker-dealer
may not maintain this information.
Class
A Sales Charge Waivers.
Class
A shares may be purchased without front-end sales charges by the following
individuals and institutions:
• Investors
in fee-based advisory or managed account programs where the sponsor or a
broker-dealer has an agreement with the Funds' distributor authorizing the sale
of fund shares.
•
Clients of financial intermediaries who have entered into an agreement with the
Funds' distributor or Madison to offer fund shares through a network, platform
or to self-directed investment brokerage accounts.
• Registered
representatives of broker/dealers and registered investment advisers authorized
to sell the Funds when purchasing shares for their own account or for the
benefit of their immediate family.
• Individuals
and their immediate family who, within the past twelve months, were members of
the Board of Trustees of the Trust; were trustees, directors, officers or
employees of Madison Investment Holdings, Inc., and/or its subsidiaries or
affiliated companies including Madison, any subadviser, or service providers of
Madison Funds or the Ultra Series Fund; or any trust, pension, profit sharing or
other benefit plan which beneficially owns shares for those
persons.
• Individuals
and their immediate family who within the past twelve months were trustees,
directors, officers, or employees of CMFG Life Insurance Company or its
subsidiaries and affiliates (collectively referred to herein as “CMFG Life”), or
any trust, pension, profit sharing or other benefit plan which beneficially owns
shares for those persons, provided the purchase is self-directed without the
consultation of a registered representative. If the purchase is made through a
registered representative, sales charges as described herein may
apply.
•
Credit union employees and their “immediate family,” when purchasing shares for
their own personal accounts.
• Investors
who establish a self-directed investment account maintained by the Funds'
transfer agent, where the investment is made without the consultation of
registered representative and there is no broker-dealer of record associated
with the account.
• Retirement
Health Care Funding Program accounts (FAS 106) and Employee Option Plan accounts
administered by CMFG Life.
• Credit
union system-affiliated institutional investors, charitable organizations, and
other non-profit organizations as described in section 501(c)(3) of the Internal
Revenue Code of 1986, as amended (the “Code”).
• Credit
union employees and employees of non-profit organizations that qualify as
tax-exempt under section 501(c) of the Code, when purchasing shares in a 457(b)
eligible deferred compensation plan.
• Qualified
defined benefit or qualified defined contribution pension plans, including
401(k) plans, with over $250,000 of assets.
In
addition, Class A shares may be purchased without front-end sales charges in the
following transactions:
• With
proceeds from the liquidation of a CMFG Life-affiliated pension product.
• By
exchange from one fund to another.
• From
the proceeds of shares of another fund account on which a load was already
paid.
• Reinvestment
of dividends or capital gains from any fund.
• Pursuant
to the Funds’ reinstatement or reinvestment privilege (see the SAI for more
information).
The
Funds may terminate or amend the terms of these sales charge reductions or
waivers at any time.
Class
C Shares. Class
C shares are sold without any initial sales charge. The Funds' distributor pays
a commission equal to 1% of the amount invested to broker/dealers who sell Class
C shares. For Class C shares, a contingent deferred sales charge (CDSC) of 1%
may be applied on shares you sell within one year of purchase. Class C shares do
not convert to any other share class.
The
CDSC is based on the original purchase cost or the current NAV of the shares
being sold, whichever is less. There is no CDSC on shares acquired through
reinvestment of dividends or capital gain distributions. Certain withdrawals,
including those made through a systematic withdrawal program, may not be subject
to a CDSC. For more information, see the “Class C CDSC Waivers” subsection,
below.
For
purposes of computing the CDSC, all purchases made during a calendar month are
counted as having been made on the first day of that month. To minimize your
CDSC, each time you place a request to sell shares, we will first sell any
shares in your account that are not subject to a CDSC. If there are not enough
of these to meet your request, we will sell those shares that you have owned for
the longest period of time. Specifically, we will sell shares that represent
share price increases (if any) first, then dividends, then the oldest-aged
shares.
Class
C CDSC Waivers.
In
order to ensure you receive a waiver of the CDSC on redemptions of your Class C
shares, you need to notify your financial adviser or Madison Funds at the time
you redeem the shares that you qualify for such a waiver. If notice is not
provided, you may not receive the waiver to which you are otherwise entitled.
Madison Funds may require evidence, and reserves the right to request additional
documentation, to verify you are eligible for a waiver of sales charges.
The
CDSC may be waived on redemptions of Class C shares under the following
circumstances:
•If
you have established a systematic withdrawal plan, as long as the redemptions do
not exceed 12% of the value of an account annually (calculated at the time of
the withdrawal).
•Due
to death or disability.
• For
the following types of transactions in individual retirement accounts (IRAs) or
other qualified retirement plans described under section 401(a) of the Code,
unless otherwise noted: returns of excess contributions; qualified hardship
withdrawals; and required minimum distributions
or
to effect life expectancy distributions scheduled under the equal periodic
payment exception (sometimes referred to as the 72t exception).
• Pursuant
to Madison Funds’ right to liquidate small accounts (see “Your Account - General
Policies - Small Accounts”).
Please
refer to the SAI or the Funds’ website at www.madisonfunds.com for additional
information on sales charge reductions and waivers. The SAI is available free of
charge, upon request, by calling 1-800-877-6089. The Funds’ website includes
hyperlinks to the information provided herein and to the additional information
that is referenced in the SAI.
Distribution
and Service Plans (Rule 12b-1)
Madison
Funds has adopted, on behalf of certain funds and share classes, distribution
and/or service plans pursuant to Rule 12b-1 under the Investment Company Act of
1940, as amended (the “1940 Act”). These plans permit the funds to pay for
distribution of their shares and servicing of their shareholders out of fund
assets; therefore, the cost of these plans is indirectly borne by all
shareholders who own shares of the affected funds and share classes. These plans
are described below.
Distribution
Fees (Class C shares only). A
distribution plan has been adopted pursuant to Rule 12b-1 under the 1940 Act for
Class C shares of each of the funds. Under the terms of each plan, each fund
pays its principal distributor, MFD, a fee equal to 0.75% of the average daily
net assets attributable to Class C shares of that fund. MFD may use this fee to
cover its distribution-related expenses (including commissions paid to
broker/dealers for selling C shares) or the distribution-related expenses of
dealers. This fee increases the cost of investing in the Class C shares of a
fund and, over time, may cost more than paying the initial sales charge for
Class A shares.
Service
Fees (Class A and C shares). Service
plans have been adopted pursuant to Rule 12b-1 under the 1940 Act for Class A
and C shares of each of the funds. Under the terms of these plans, each fund
pays MFD a service fee equal to 0.25% of the average daily net assets
attributable to each class of shares of that fund. The service fee is used by
MFD to offset costs of servicing shareholder accounts or to compensate other
qualified broker/dealers who sell shares of the funds pursuant to agreements
with MFD for their costs of servicing shareholder accounts. MFD may retain any
portion of the service fee for which there is no broker/dealer of record as
partial consideration for its services with respect to shareholder accounts.
Selling
Shares
The
following explains how to sell your shares by letter, phone or exchange. You may
sell shares at any time. Upon request, your shares will be sold at the next NAV
calculated after your order is received in good order by the Fund. “Good order”
means that the request includes the fund and account number, amount of
transaction, signatures of the owners as noted below and a “medallion guarantee”
if required.
In
certain circumstances, to protect you and the Funds, you will need to make your
request to sell shares in writing, which may require sending additional
documents. In addition, you will need to obtain a medallion
guarantee
if
the redemption is:
• over
$100,000;
• made
payable to someone other than the registered shareholder(s); or
• mailed
to an address other than the address of record, or an address that has been
changed within the last 30 days.
You
can generally obtain a medallion guarantee from a financial institution, a
broker or securities dealer, or a securities exchange or clearing agency. A
notary public CANNOT provide a medallion guarantee. The Trust reserves the right
to require a medallion guarantee on any redemption.
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| SELLING
SHARES |
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BY
LETTER
(Available
for accounts of any type and sales of any amount.) |
| Write
a letter of instruction indicating your account number, Fund name, the
name in which the account is registered and the dollar value or number of
shares you wish to sell. Mail your letter, and any other required
materials, to Madison Funds. A check will be mailed to the name and
address in which the account is registered. |
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If
you are: |
| A
written letter of instruction to sell shares must include: |
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An
owner of an individual, joint, sole proprietorship, UGMA/UTMA (custodial
accounts for minors) or general partner account |
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•The
signatures of all persons authorized to sign for the account, exactly as
the account is registered.
•Medallion
guarantee if applicable. |
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| An
owner of a corporate or association account, or an owner or trustee of a
trust account |
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•The
signature of the person(s)/trustee(s) authorized to sign for the
account.
•Medallion
guarantee required. |
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A
joint tenancy shareholder whose co-tenant is deceased |
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•The
signature of the surviving tenant.
•Tax
waiver (if applicable in your state).
•Medallion
guarantee required. |
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An
executor of a shareholder’s estate |
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•The
signature of the executor.
•Tax
waiver (if applicable in your state).
•Medallion
guarantee required. |
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For
other account types not listed above, please call Madison Funds at
1-800-877-6089 for instructions. |
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| SELLING
SHARES |
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BY
PHONE
(Available
for most accounts and sales of up to $100,000 per day.) |
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To
place your redemption order, call Madison Funds at 1-800-877-6089, or use
our automated touchtone service 24-hours a day. Redemption requests may be
placed on all business days (excluding market holidays). Checks are
generally mailed the next business day after the redemption request is
effective. |
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Redemption
proceeds can be sent by electronic funds transfer (“EFT”) provided that
you have pre-authorized banking information on file with Madison Funds.
Redemption proceeds from EFT transactions are generally available by the
second business day. The Trust does not charge for EFT; however, your
financial institution may charge a fee for this service. |
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| Amounts
of $1,000 or more can be wired on the next business day, provided that you
have pre-authorized the wiring of funds and the needed information is on
file with Madison Funds. A $15 fee will be deducted from your account to
send the wire; your financial institution may charge an additional fee to
accept the wired funds. |
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BY
EXCHANGE
(Available
for most accounts and amounts that meet fund minimums.) |
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| Make
sure that you have a current prospectus for the Madison Funds, which can
be obtained by calling your financial adviser or Madison Funds at
1-800-877-6089. Call your financial adviser, Madison Funds, or use the
Internet at www.madisonfunds.com to execute the exchange. |
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| BY
INTERNET |
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Depending
upon the type of account you hold, you may be able to redeem shares
online. The feature will be activated if your account is
eligible. |
| |
Redemption
requests received in good order by the Funds after the close of regular trading
on the New York Stock Exchange
(usually
4:00 p.m., Eastern Time), will be processed using the next day’s
NAV.
The
Funds typically expects that each fund will pay redemption proceeds one business
day following receipt and acceptance of a redemption order. However, payment may
take longer than one business day and make take up to seven days as generally
permitted by the 1940 Act. In addition, if you recently purchased shares and
subsequently request a redemption of those shares, each fund will pay redemption
proceeds once a sufficient period of time has passed to reasonably ensure that
checks or drafts, for the shares purchased have cleared (normally seven business
days from the purchase date).
Under
normal market conditions, the Funds typically expect that each fund will meet
shareholder redemptions by monitoring a fund's portfolio and redemption activity
and by regularly holding a reserve of highly liquid assets, such as cash or cash
equivalents. Each fund may use additional methods to meet redemptions, if they
become necessary in stressed market conditions. These methods may include, but
are not limited to, the sale of portfolio assets, the use of overdraft
protection afforded by the Funds' custodian bank, and making payment with fund
securities or other fund assets rather than in cash (as further discussed in the
following paragraph).
Although
payment of redemptions normally will be in cash, each fund reserves the right to
pay the redemption price in whole or in part by a distribution of securities
held by each fund (commonly referred to as an in-kind redemption). To the extent
that a fund redeems its shares in this manner, the shareholder assumes the risk
of a subsequent change in the market value of those securities, the cost of
liquidating the securities and the possibility of a lack of a liquid market for
those securities. The
SAI contains further information about in-kind redemptions.
General
Policies
Limitation
on Purchases.
If
you purchase shares by check and your check does not clear, your purchase will
be canceled and you could be liable for any losses or fees incurred. A charge of
$30 will be assessed for each returned check occurrence. We do not accept
third-party checks, starter checks, credit cards, credit card checks, or cash to
purchase shares. All purchase payments must be denominated in U.S. dollars and
drawn on or from U.S. financial institutions. Additionally, we will not normally
accept purchase orders of more than $999,999 for Class C shares from a single
investor.
Pricing
of Fund Shares. The
NAV for each fund and class is determined each business day at the close of
regular trading on the New York Stock Exchange (typically 4:00 p.m. Eastern
Time) by dividing the net assets of each fund and class by the number of shares
outstanding of that fund and class. Transaction requests received after the
close of regular trading on the New York Stock Exchange (usually 4:00 p.m.
Eastern Time) will be processed using the next day’s NAV. The NAV per share for
each fund and class is not determined on days the New York Stock Exchange is
closed for trading. The New York Stock Exchange is closed on New Year’s Day,
Martin Luther King, Jr. Day, President’s Day, Good Friday, Memorial Day,
Independence Day, Labor Day, Thanksgiving Day and Christmas Day.
A
fund’s NAV is equal to the market value of its investments and other assets,
less any liabilities, divided by the number of fund shares. Because the assets
of the Conservative
Allocation, Moderate Allocation, Aggressive Allocation
and Diversified
Income Funds
(each an "Allocation
Fund,"
and, collectively, the “Allocation
Funds”)
consist primarily of shares of the underlying funds, the NAV of each
Allocation Fund
is determined based on the NAVs of the underlying funds. Because each
Allocation
Fund
will only invest in underlying funds, government securities and short-term
paper, it is not anticipated that Madison will need to “fair” value any of the
investments of the Allocation
Funds.
However, an underlying fund may need to “fair” value one or more of its
investments, which may, in turn, require a Allocation
Fund
to do the same because of delays in obtaining the underlying fund’s NAV.
The
following fair valuation policy is followed by Madison with respect to the funds
that it advises. It is anticipated that unaffiliated underlying funds will have
a fair valuation policy that is similar and such policy will be described in the
prospectus of the underlying fund, including an explanation of the circumstances
under which fair value pricing will be used and the effects of using fair value
pricing.
If
quotations are not readily available for a security or other portfolio
investment, no other sales have occurred, or if it is believed that a quotation
or other market price for a security or other portfolio investment does not
represent its fair value, Madison may value the security or investment using
procedures adopted by the Board of Trustees pursuant to Rule 2a-5 under the 1940
Act. These procedures designate Madison as the “valuation designee” for the
Funds, and Madison, in turn, has delegated valuation decisions to its Pricing
Committee. Securities and other investments valued at their fair value entail
significantly greater valuation risk than do securities and other investments
valued at an established market value.
Madison
relies on its fair value procedures most often in connection with foreign
securities whose principal trading market(s) is outside the U.S. and/or are
denominated in a foreign currency. From time to time, events occur that affect
the issuers of such foreign securities or the securities themselves, or
information about the issuer or securities becomes available, after the close of
trading in the securities but before the close of regular trading on the New
York Stock Exchange (usually 4:00 p.m. Eastern Time). In these situations, the
fair value of the foreign security may be something other than the last
available quotation or other market price. With regard to such foreign
securities, the fair valuation procedures include consultation with an
independent “fair value” pricing service. Nonetheless, Madison separately
evaluates each such foreign security and may, in conformity with the fair
valuation procedures, establish a different fair value than that reached by the
independent pricing service or other financial institutions or investment
managers.
Determining
the fair value of securities involves consideration of objective factors as well
as the application of subjective judgments about their issuers and the markets
in which they are traded. A number of methodologies are available for
determining the value of securities for which there is no clear market value or
for which after-market events make prior market values unreliable. The value
established by Madison under the fair valuation procedures for any security or
other investment (or underlying fund) may vary from the last quoted sale price
or market close price, or from the value given to the same security or
investment by: (1) an independent pricing service; (2) other financial
institutions or investment managers; or (3) Madison, had it used a different
methodology to value the security. The Trust cannot assure that a security or
other portfolio investment can be sold at the fair value assigned to it at any
time.
To
the extent that a fund holds portfolio securities that are primarily listed on
foreign exchanges that trade on weekends or other days when the Funds do not
price their shares, the NAV of such fund's shares may change on days when
shareholders will not be able to purchase or redeem the fund's
shares.
Execution
of Requests. Each
fund is open on those days when the New York Stock Exchange is open, typically
Monday through Friday. Purchase and redemption requests are executed at the next
NAV calculated after your request is received in good order by the Trust. In
unusual circumstances, a fund may temporarily suspend the processing of sell
requests, or may postpone payment of proceeds for up to seven days or longer, as
allowed by federal securities law.
Purchases
and Redemptions through Authorized Financial Intermediaries. You
may purchase or redeem shares of the Funds through financial intermediaries who
are authorized to sell shares. Certain of these financial intermediaries are
authorized to designate other financial intermediaries to receive purchase and
redemptions orders on the Funds' behalf. The Funds will be deemed to have
received a purchase or redemption order when an authorized financial
intermediary, or, if applicable, any such financial intermediaries' authorized
designee, receives the order.
Purchase
and Redemption Prices. When
you purchase shares, you pay the NAV plus any applicable sales charges, as
described earlier. When you redeem shares, you receive the NAV minus any
applicable contingent deferred sales charge (CDSC). Purchase orders and
redemption and exchange requests will be executed at the price next determined
after the order or request is received in good order by the Trust, as described
in “Your Account - Purchasing Shares” and “Your Account - Selling Shares.”
Redemption
in Advance of Purchase Payments. When
you place a request to redeem shares for which the purchase payment has not yet
been collected, the request will be executed in a timely fashion, but the fund
will not release the proceeds to you until your purchase payment clears. This
may take up to seven business days after the purchase.
Frequent
Purchases and Redemptions of Fund Shares.
The Trust discourages investors from using the funds to frequently trade or
otherwise attempt to “time” the market. As a result, the Funds reserve the right
to reject a purchase or exchange request for any reason.
Market
Timing.
It is the policy of the Board of Trustees of Madison Funds to block shareholders
or potential shareholders from engaging in harmful trading behavior, as
described below, in any Madison Fund. To accomplish this, the Funds reserve the
right to reject a purchase or exchange request for any reason, without notice.
This policy does not affect a shareholder’s right to redeem an account. In
addition, the Funds have written agreements in place with intermediaries who
hold fund shares on behalf of others (e.g., brokers, banks and plan
administrators) which give the Funds the authority to identify third parties who
invest in the funds through such intermediaries so that the Funds can prevent
them from engaging in harmful frequent trading and market-timing activity as
described below.
Identifiable
Harmful Frequent Trading and Market-Timing Activity.
The Trust defines harmful trading activity as that activity having a negative
effect on portfolio management or fund expenses. For example, a fund subject to
frequent trading or “market-timing” must maintain a large cash balance in order
to permit the frequent purchases and redemptions caused by market-timing
activity. Cash balances must be over and above the “normal” cash requirements
the fund keeps to handle redemption requests from long-term shareholders, to buy
and sell portfolio securities, etc. By forcing a fund’s portfolio manager to
keep greater cash balances to accommodate market timing, the fund may be unable
to invest its assets in accordance with the fund’s investment objective.
Alternatively, harmful trading activity may require frequent purchase and sale
of portfolio securities to satisfy cash requirements. To the extent
market-timing activity of this sort requires the affected fund to continually
purchase and sell securities, the fund’s transaction costs will increase in the
form of brokerage commissions and custody fees. Finally, frequent trading
activity results in a greater burden on the affected fund’s transfer agent,
increasing transfer agent expenses and, if not actually raising fund expenses,
at least preventing them from being lowered.
For
all of the above reasons, the Funds monitor cash flows and transfer agent
activity in order to identify harmful activity. Furthermore, when approached by
firms or individuals who request access for market timing activities, the Funds
decline such requests; when trades are attempted without such courtesy, the
Funds make every effort to block them and prohibit any future investments from
the source of such trades. The Funds do
not
define market-timing by the frequency or amount of trades during any particular
time period. Rather, the Funds seek to prevent market-timing of any type that
harms the funds in the manner described above.
The
Funds do not currently impose additional fees on market timing activity although
the right to do so is reserved upon notice to shareholders in the future. The
Funds do not specifically define the frequency of trading that will be
considered “market timing” because the goal is to prevent any harm to long-term
investors that is caused by any out-of-the-ordinary trading or account activity.
As a result, when the Funds identify any shareholder activity that causes or is
expected to cause the negative results described above, the Funds will block the
shareholder from making future investments. As a practical matter, the Trust’s
generally applicable restriction on exchanges per fund to five per year, as
described in the “Purchasing By Exchange” section above, limits the occurrence
of frequent trading and market-timing activity.
The
Funds use their discretion to determine whether transaction activity is harmful
based on the criteria described above. Except as described below, the Funds do
not distinguish between shareholders that invest directly with a fund or
shareholders that invest with the Trust through a broker (either directly or
through a financial intermediary account), an investment adviser or other third
party as long as the account is engaging in harmful activity as described above.
Other
Risks Associated with Market Timing.
Moving money in and out of funds on short notice is a strategy employed by
certain investors who hope to reap profits from short-term market fluctuation.
This is not illegal, but is discouraged by many funds since it can complicate
fund management and, if successfully employed, have a negative impact on
performance. In particular, a successful “market-timer” could, over time, dilute
the value of fund shares held by long-term investors by essentially “siphoning
off” cash by frequently buying fund shares at an NAV lower than the NAV at which
the same shares are redeemed. The Funds will block ALL identifiable harmful
frequent trading and market-timing activity described above regardless of
whether the market-timer is successful or unsuccessful. In any event, investors
in any of the Madison Funds should be aware that dilution caused by successful
market timing by some shareholders is a risk borne by the remaining
shareholders.
Exceptions
or Other Arrangements.
It is possible that a fund will not detect certain frequent trading or market
timing activity in small amounts that, because of the relatively small size of
such activity, is subsumed by the normal day-to-day cash flow of the fund (see
the section above entitled “Other Risks Associated with Market Timing”).
However, the Funds believe their procedures are adequate to identify any market
timing activity having the harmful effects identified in the section entitled
“Identifiable Harmful Frequent Trading and Market-Timing Activity” regardless of
the nature of the shareholder or method of investment in the Trust.
Delegation
to Certain Financial Intermediaries.
The Trust may rely on the short-term trading policies enforced by financial
intermediaries if, in the discretion of the Trust’s Chief Compliance Officer,
such policies are designed to prevent the harm that these policies are designed
to address. Financial intermediary policies relied upon in this manner must be
adequately identified in written agreements enforceable by the Trust or its
distributor on behalf of the Funds.
Because
the Funds discourage market timing in general, Madison Funds does not currently,
nor does it intend to, have any arrangements or agreements, formal or informal,
to permit any shareholders or potential shareholders to directly or indirectly
engage in any type of market-timing activities, harmful or otherwise.
Although
the Funds believe reasonable efforts are made to block shareholders that engage
in or attempt to engage in harmful trading activities, the Funds cannot
guarantee that such efforts will successfully identify and block every
shareholder that does or attempts to do this.
Telephone
Transactions. For
your protection, telephone requests are recorded in order to verify their
accuracy. In addition, the Trust will take measures to verify the caller’s
identity, such as asking for name, account number, Social Security or taxpayer
ID number and other relevant information. The Trust is not responsible for any
losses that may occur due to unauthorized telephone calls. Also for your
protection, redemption transactions are not permitted via telephone on accounts
for which names or addresses have been changed within the past 30 days unless
the account has been pre-authorized for EFT or wire redemption privileges to a
financial institution account.
Internet
Transactions. For
your protection, you will need your Social Security and account number to
establish access to your account on the Internet. You will be asked to assign a
unique password and you will need to use that password on all future visits to
verify your identity. Buy and sell prices and valuation of shares procedures are
consistent with the policies noted above. The Trust is not responsible for any
losses that may occur due to unauthorized access.
Special
Redemptions.
Although no fund would normally do so, each fund has the right to pay the
redemption price of shares of the fund in whole or in part in portfolio
securities held by the fund as prescribed by the Board of Trustees. However, the
Trust has elected to be governed by Rule 18f-1 under the Investment Company Act
of 1940, as amended. Under that rule, each fund must redeem its shares for cash
except to the extent that the redemption payments to any shareholder during any
90-day period would exceed the lesser of $250,000 or 1% of the fund’s NAV at the
beginning of such period.
Householding.
To
reduce shareholder service expenses, the Trust intends to send only one copy of
its reports per household regardless of the number of investors at the household
or the number of accounts held. However, any investor may obtain additional
reports upon request to Madison Funds.
Account
Statements. In
general, you will receive account statements every quarter, as well as after
every transaction (except for any dividend reinvestment or systematic
transactions) that affects your account balance and after any changes of name or
address of the registered owner(s). Every year you should also receive, if
applicable, a Form 1099 tax information statement, which will be mailed to you
by January 31.
Research
and Other fees.
Shareholders who need investment records for years prior to the past calendar
year may be charged a research fee of $5 per request (with a maximum fee of $25
per request). The Funds reserve the right to impose additional charges, upon 30
days written notice, to cover the costs of unusual transactions. Services for
which charges could be imposed include, but are not limited to, processing items
sent for special collection, international wire transfers, research and
processes for retrieval of documents or copies of documents.
Small
Accounts.
Due
to the high fixed cost of maintaining mutual fund accounts, the Trust reserves
the right to close any non-retirement accounts (excluding accounts set up with a
systematic investment program) that have balances below $1,000. We will mail you
a notice asking you to bring the account value up to $1,000 or initiate a
systematic investment program. If you do not bring the account value up to
$1,000 or initiate a systematic investment program within 60 days, the Trust may
sell your shares and mail the proceeds to you at your address of
record.
Escheatment.
Please be advised that certain state escheatment laws may require the Funds to
turn over your mutual fund account to the state listed in your account
registration as abandoned property unless you contact the Funds. Many states
have added "inactivity" or the absence of customer
initiated contact
as a component of their rules and guidelines for the escheatment of unclaimed
property. These states consider property to be abandoned when there is
no
shareholder initiated activity
on an account for at least three (3) to five (5) years. Depending on the laws in
your jurisdiction, customer initiated contact might be achieved by one of the
following methods:
•Send
a letter to Madison Funds via the United States Post Office,
•Speak
to a Shareholder Service Representative on the phone after you go through a
security verification process. For residents of certain states, contact cannot
be made by phone but must be in writing or through the Funds secure web
application,
•Access
your account through the Funds secure web application,
•Cashing
checks that are received and are made payable to the owner of the
account.
Shareholders
that reside in the state of Texas may designate a representative to receive
escheatment notifications by completing and submitting a designation form that
can be found on the website of the Texas Comptroller. While the designated
representative does not have any rights to claim or access the shareholder’s
account or assets, the escheatment period will cease if the representative
communicates knowledge of the shareholder’s location and confirms that the
shareholder has not abandoned his or her property. If a shareholder designates a
representative to receive escheatment notifications, any escheatment notices
will be delivered both to the shareholder and the designated representative. The
completed designation form may be mailed to Madison Funds, P.O. Box 219083,
Kansas City, MO 64121-9083.
The
Funds, Madison, and the transfer agent will not be liable to shareholders or
their representatives for good faith compliance with escheatment laws. To learn
more about the escheatment rules for your particular state, please contact your
attorney or State Treasurer’s and/or Controller’s Offices. If you do not hold
your shares directly with the Funds, you should contact your broker-dealer,
retirement plan, or other third party, financial intermediary regarding
applicable state escheatment laws.
Disclosure
of Portfolio Information.
Portfolio holdings information is available on the Funds’ website at
www.madisonfunds.com. In addition, a complete description of the Funds’ policies
and procedures with respect to the disclosure of portfolio holdings is available
in the SAI.
Additional
Investor Services
Depending
on which share class you purchase, you may eligible to establish one or more of
the additional account options described below.
Automatic
Investment Plan. You
may set up regular systematic investments from your financial institution
account to purchase shares of Class A, Class C or Class Y shares of Madison
Funds. You determine the frequency (no less than quarterly), day of the month,
amount of your investments, and you may terminate the plan at any time. The
monthly minimum investment is $50 per fund. To enroll in an automatic investment
plan, complete the appropriate parts of the new account application or, for an
existing account, the account maintenance form. This account option is not
available for Class I or Class R6 shares.
Payroll
Deduction Plan. If
your employer supports a payroll deduction program, you may set up regular
investments from your payroll to purchase shares of Class A, Class C or Class Y
shares of Madison Funds. You determine the frequency (no less than quarterly),
day of the month, amount of your investments, and you may terminate the plan at
any time. The monthly minimum investment is $50 per fund. To enroll in a payroll
deduction plan, complete the Madison Funds Payroll Deduction Form. A new account
application must accompany the form if you are opening a new account. This
account option is not available for Class I or Class R6 shares.
Systematic
Withdrawal Plan. If
your account balance in Class A, Class C or Class Y shares is at least $5,000
you may set up regular systematic withdrawals from your Madison Funds account.
You determine the frequency (no less than monthly), day of the month, amount of
your withdrawals, and you may terminate the plan at any time. The monthly
minimum withdrawal is $50 per fund. For Class C share accounts, no CDSC will be
charged on systematic withdrawals of no more than 12% of your account’s value
annually. To enroll in a systematic withdrawal plan, complete the appropriate
sections of the new account application or, for an existing account, the account
maintenance form. This account option is not available for Class I or Class R6
shares.
Systematic
Exchange Plan. If
your account balance in Class A, Class C or Class Y shares is at least $5,000
you may exchange your shares for the same class of shares of another Madison
fund.
You
determine the frequency (no less than monthly), day of the month, amount of your
exchanges, and you may terminate the plan at any time. The monthly minimum
exchange amount is $50 per fund. For plans investing in Class C shares, for the
purposes of computing the CDSC, the length of time you have owned your shares
will be measured from the date of original purchase of the Class C shares and
will not be affected by any permitted exchange.
To
enroll in a systematic exchange plan, complete the appropriate sections of the
new account application or, for an existing account, the account maintenance
form.
This
account option is not available for Class I or Class R6 shares.
Distributions
and Taxes
Schedule
of Distributions.
The Funds generally distribute most or all of their net investment income and
capital gains. Capital gain distributions, if any, are typically made in
December. Income distributions, if any, are made as follows:
•Declared
monthly and paid monthly: Tax-Free
Virginia, Tax-Free National, Core Bond, and
Diversified Income Funds.
•Declared
quarterly and paid quarterly: Conservative
Allocation, High Quality Bond, Covered Call & Equity Income and
Dividend
Income Funds.
•Declared
annually and paid annually: Moderate
Allocation, Aggressive Allocation, Investors, Sustainable Equity, Mid Cap, Small
Cap, and
International Stock Funds.
Distribution
Reinvestment. Many
investors have their distribution payments reinvested in additional shares of
the same fund and class. If you choose this option, or if you do not indicate
any choice on the account application, your distribution payments will be
reinvested on the payment date. Alternatively, you can choose to have a
check mailed to you for your distribution payments. However, if, for any
reason, the check is not deliverable, or you do not respond to mailings from
Madison Funds with regard to uncashed distribution checks, your distribution
payments may be reinvested and no interest will be paid on amounts represented
by the check. In addition, your distribution options may be automatically
converted to having all dividends and other distributions reinvested in
additional shares.
Taxability
of Distributions. All
distributions that you receive from a fund are generally taxable, whether
reinvested or received in cash. Distributions from a fund’s net investment
company taxable income (which includes dividends, taxable interest, net
short-term capital gains, and net gains from foreign currency transactions), if
any, generally are taxable as ordinary income, unless such distributions are
attributable to “qualified dividend” income eligible for the reduced rate of tax
on long-term capital gains or unless you are exempt from taxation or entitled to
a tax deferral. Distributions paid by each fund from net capital gains (the
excess of net long-term capital gains over short-term capital losses) are
taxable as long-term capital gains whether reinvested or received in cash and
regardless of the length of time you have owned your shares unless you are
exempt from taxation or entitled to a tax deferral. Currently, the maximum
federal income tax rate applicable to long-term capital gains, and thus to
qualified dividend income is
20%. Each
fund will inform its shareholders of the portion of its dividends (if any) that
constitute qualified dividend income.
Generally,
“qualified dividend” income includes dividends received during the taxable year
from certain domestic corporations and qualified foreign corporations. The
portion of a distribution that the fund pays that is attributable to qualified
dividend income received by the fund will qualify for such treatment in the
hands of the non-corporate shareholders of the fund. If a fund has income of
which more than 95% was qualified dividends, all of the fund’s dividends will be
eligible for the lower rates on qualified dividends. Certain holding period
requirements applicable to both the fund and the shareholder also must be
satisfied to obtain qualified dividend treatment.
When
a fund makes a distribution, the fund’s NAV decreases by the amount of the
payment. If you purchase shares shortly before a distribution, you will,
nonetheless, be subject to income taxes on the distribution, even though the
value of your investment (plus cash received, if any) remains the same.
Fund
distributions from the Moderate
Allocation,
Diversified
Income,
Covered
Call & Equity Income
and Dividend
Income
Funds
are expected to be distributions of both net investment company taxable income
and net capital gains. Fund distributions from the Aggressive
Allocation,,
Investors, Sustainable Equity, Mid Cap, Small Cap
and
International Stock Funds are
expected to be primarily distributions of net capital gains, and fund
distributions from the
Conservative Allocation, Tax-Free Virginia, Tax-Free National, High Quality Bond
and
Core Bond Funds
are expected to be primarily distributions of net investment company taxable
income.
Taxability
of Transactions. Your
redemption of fund shares may result in a taxable gain or loss to you, depending
on whether the redemption proceeds are more or less than what you paid for the
redeemed shares. An exchange of fund shares for shares in any other fund of the
Trust generally will have similar tax consequences.
Tax-Free
Funds. Distributions
of tax-exempt interest income from the Tax-Free
Virginia Fund
are generally exempt from federal taxation and will normally be exempt from
state income tax for investors in Virginia as well (capital gain distributions
from the fund are, however, subject to applicable federal and state taxation, as
are redemptions). With regard to the Tax-Free
National Fund,
normally, the tax-exempt income attributable to the shareholder’s home state may
be exempt from state taxes and all such distributions are generally exempt from
federal taxation. However, in most states, the rest of the distributions of
income from the fund will be subject to state income tax. Like the Tax-Free
Virginia Fund,
capital gain distributions from the Tax-Free
National Fund
are subject to applicable federal and state taxation, as are
redemptions.
Withholding.
If
you do not furnish the Trust with your correct Social Security Number or
Taxpayer Identification Number and/or the Trust receives notification from the
Internal Revenue Service requiring back-up withholding, the Trust is required by
federal law to withhold federal income tax from your distributions and
redemption proceeds, currently at a rate of
24% for
U.S. residents.
This
section is not intended to be a full discussion of tax laws and the effect of
such laws on you. There may be other federal, state, foreign or local tax
considerations applicable to a particular investor. You are urged to consult
your own
tax
adviser.
Please
refer to the SAI for more information about taxes.
INVESTMENT
ADVISER
The
Funds’ investment adviser is Madison Asset Management, LLC (“Madison”), a
subsidiary of Madison Investment Holdings, Inc. (“MIH”), both located at 550
Science Drive, Madison, Wisconsin 53711. As of December 31, 2023, MIH, which was
founded in 1974, and its affiliate organizations, including Madison, managed
approximately $23.9 billion in assets, including open-end mutual funds, ETFs, a
closed-end fund, separately managed accounts and wrap accounts. Madison is
responsible for the day-to-day administration of the Funds’ activities.
Investment decisions regarding each of the Funds can be influenced in various
manners by a number of individuals. Generally, all management decisions are the
ultimate responsibility of Madison’s Investment Risk Oversight Committee. This
committee is comprised of senior officers and portfolio managers of Madison.
Investment
Advisory Agreement
For
its investment advisory services to the Funds, pursuant to the terms of an
Investment Advisory Agreement between Madison and the Trust,
Madison
is entitled to receive a management fee, which is computed daily and paid
monthly, at an annualized percentage rate of the average daily value of the net
assets of each fund as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Fund |
Management
Fee |
| Fund |
Management
Fee |
| Conservative
Allocation |
0.20% |
| Covered
Call & Equity Income |
0.85% |
| Moderate
Allocation |
0.20% |
| Dividend
Income |
0.70%1 |
| Aggressive
Allocation |
0.20% |
| Investors |
0.70%1 |
| Diversified
Income |
0.20%1,2 |
| Sustainable
Equity |
0.70%1 |
| Tax-Free
Virginia |
0.50% |
| Mid
Cap |
0.75%1 |
| Tax-Free
National |
0.40% |
| Small
Cap |
0.89%1 |
| High
Quality Bond |
0.30% |
| International
Stock |
1.05%1 |
| Core
Bond |
0.39%1 |
|
| |
1
Each
fund’s management fee will be reduced annually by 0.05% on assets exceeding $500
million, and by another 0.05% on assets exceeding $1 billion.
2
Effective July 31, 2023,the management fee was changed from 0.40% to
0.20%.
Madison
may from time to time, contractually or voluntarily, agree to waive a portion of
its management fee and/or reimburse each fund’s operating expenses to ensure
that each fund’s operating expenses do not exceed certain expense limitations if
applicable. Contractual fee agreements may by modified or terminated at any time
or for any reason, but only with fund Board approval. Voluntary waivers may be
amended or discontinued at any time without prior notice. Any fees waived are
not typically subject to later recoupment by Madison, except as otherwise noted.
Pursuant to the terms of an Operating Expense Limitation Agreement dated as of
December 1, 2023, by and between the Trust, on behalf of each Fund, and Madison,
Madison contractually agreed to waive its management fees and/or reimburse
expenses of each Fund to the extent necessary to limit each class of each Fund’s
total operating expenses to the levels specified in the then-currently effective
prospectus for the Funds (exclusive of certain fees and expenses), for a period
of no less than two years. Any such fee waivers and/or reimbursements are not
subject to later recoupment by Madison, and are reflected in the fee tables of
this prospectus, if and as applicable.
A
discussion regarding the basis for approval of the Funds’ Investment Advisory
Agreement by the Board of Trustees is contained in the Funds’ annual report to
shareholders for the period ended October 31, 2023.
Administrative
Services Agreement
In
addition to the management fee, Madison is entitled to receive an administrative
services fee from each fund pursuant to the terms of a separate Administrative
Services Agreement. Under this fee agreement, Madison provides or arranges for
each fund to have all of the necessary operational and support services it needs
for a fee.
Expenses
that are not included under this fee agreement are: (i) transaction-related
expenses including, but not limited to, brokerage commissions paid in connection
with fund transactions, interest or fees in connection with fund indebtedness or
taxes paid in connection with portfolio securities held, (ii) Rule 12b-1
distribution and service fees, (iii) acquired fund fees, if any, (iv) the fees
of the Independent Trustees, and (v) any extraordinary or nonrecurring expenses
(such as fees and expenses relating to any temporary line of credit the Funds
maintain for emergency or extraordinary purposes). The administrative services
fees are computed daily and paid monthly, at an annualized percentage rate of
the average daily value of the net assets of each fund as follows (the same rate
applies to all share classes of each fund, except as otherwise
noted):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Fund |
Administrative
Services Fee |
| Fund |
Administrative
Services Fee |
| Conservative
Allocation |
0.25% |
| Covered
Call & Equity Income |
0.15%1,2 |
| Moderate
Allocation |
0.25% |
| Dividend
Income |
0.20%1,2 |
| Aggressive
Allocation |
0.25% |
| Investors |
0.20%1,2 |
| Diversified
Income |
0.20% |
| Sustainable
Equity |
0.20%1 |
| Tax-Free
Virginia |
0.35% |
| Mid
Cap |
0.40%1,2,3 |
| Tax-Free
National |
0.35% |
| Small
Cap |
0.40%1,2,3 |
| High
Quality Bond |
0.19%1 |
| International
Stock |
0.30% |
| Core
Bond |
0.20%1,2 |
|
| |
1
The
annual administrative services fee for the Fund's Class I share is
0.10%.
2
The
annual administrative services fee for the Fund's Class R6 share is
0.02%.
3
The
annual administrative services fee for the Fund's Class Y share is
0.20%.
Madison
may from time to time, contractually or voluntarily, agree to waive a portion of
its administrative services fee and/or reimburse each fund’s operating expenses
to ensure that each fund’s operating expenses do not exceed certain expense
limitations if applicable. Contractual fee agreements may by modified or
terminated at any time or for any reason, but only with fund Board approval.
Voluntary waivers may be amended or discontinued at any time without prior
notice. Any fees waived are not typically subject to later recoupment by
Madison, except as otherwise noted.
PORTFOLIO
MANAGEMENT
Madison
Asset Management, LLC
The
Funds are generally managed by members of the applicable asset allocation, fixed
income or equity management teams at Madison. The individuals primarily
responsible for the day-to-day management of each fund are as
follows:
Conservative,
Moderate and Aggressive Allocation Funds.
The
Conservative, Moderate and Aggressive Allocation Funds are co-managed by Patrick
Ryan, CFA and Stuart Dybdahl, CFA, CAIA. Mr. Ryan, Head of Multi-Asset Solutions
and Portfolio Manager of Madison, has co-managed the funds since January 2008.
Prior to joining Madison in July 2009, Mr. Ryan was a Senior Analyst at MEMBERS
Capital Advisors, Inc. (“MCA”), the former investment adviser to the funds.
While at MCA, Mr. Ryan had been responsible for conducting manager research and
due diligence for MCA’s managed accounts products since 2004. Mr. Dybdahl, Vice
President and Portfolio Manager/Analyst, of Madison, has co-managed the funds
since February 2023. Mr. Dybdahl joined Madison in 2015 as an investment
specialist and has worked in the financial services industry since 2014.
Diversified
Income Fund.
The Diversified Income Fund is co-managed by Patrick Ryan, CFA and Stuart
Dybdahl, CFA and CAIA. Mr. Ryan, Head of Multi-Asset Solutions, Portfolio
Manager, and Stuart Dybdahl, Vice President, Portfolio Manager/ Analyst, have
co-managed the Fund since July 2023. Biographical information for Messrs. Ryan
and Dybdahl is provided above.
Tax-Free
Virginia Fund. The
Tax-Free Virginia Fund is co-managed by Mike Peters, CFA, and Jeffrey Matthias,
CFA. Mr. Peters, Vice President and Portfolio Manager of Madison, has co-managed
the Fund since February 1997. Prior to joining Madison in 1997, Mr. Peters was
Vice President and Fixed Income Portfolio Manager for Wachovia Asset Management
since March 1993. Mr. Matthias, Vice President and Portfolio Manager/Strategist
of Madison, has co-managed the Fund since February 2016. Prior to joining
Madison in 2011, Mr. Matthias developed member society strategy at the CFA
Institute and managed fixed income portfolios at American Family Insurance.
Tax-Free
National Fund.
The Tax-Free National Fund is co-managed by Mike Peters, CFA, and Jeffrey
Matthias, CFA. Mr. Peters has served in this capacity since February 1997 and
Mr. Matthias has served in this capacity since February 2016. Biographical
information for Messrs. Peters and Matthias is provided above.
High
Quality Bond Fund. The
High Quality Bond Fund is co-managed by Chris Nisbet, CFA and Mike Sanders, CFA.
Mr. Nisbet, Vice President and Portfolio Manager, has co-managed the Fund since
the Fund’s inception in 2000. Mr. Nisbet has been a member of Madison's fixed
income team since joining the firm in 1992, and has worked in the financial
services industry since 1990. Mr. Sanders, Head of Fixed Income and Portfolio
Manager, has co-managed the Fund since February 2019. Mr. Sanders has been a
member of the Madison fixed income team since 2013, and has worked in the
financial services industry since 2004. Prior to joining Madison in 2013, he was
a fixed income portfolio manager and analyst for Ziegler Lotsoff Capital
Management focusing mostly on high yield bonds and preferred
stocks.
Core
Bond Fund.
The Core Bond Fund is co-managed Mike Sanders, CFA and Allen Olson, CFA. Mr.
Sanders,
whose biographical information is provided above, has co-managed the Fund since
September 2016. Mr. Olson, Vice President and Portfolio Manager/Analyst of
Madison has co-managed the Fund since February 2021. Mr. Olson has been a member
of Madison's fixed income team since joining the firm in 2002, and has worked in
the financial services industry since 1998. Prior to joining Madison, Mr. Olson
worked as a fixed income credit analyst and portfolio manager for Clarica
Insurance.
Covered
Call & Equity Income Fund. The
Covered Call & Equity Income Fund is co-managed by Ray DiBernardo, CFA, and
Drew Justman, CFA. Mr. DiBernardo, Vice President and Portfolio Manager/Analyst
of Madison, has co-managed the Fund since the Fund's inception in October 2009.
Prior to joining Madison in 2003, Mr. DiBernardo was employed at Concord Trust
in Chicago, IL, as well as a Toronto-based international equity firm. Mr.
Justman, whose biographical information is provided above, has co-managed the
Fund since December 2016.
Dividend
Income Fund.
The Dividend Income Fund is co-managed by John Brown, CFA, and Drew Justman,
CFA. Mr. Brown, whose biographical information is provided above, has co-managed
the Fund since March 2012. Mr. Justman, whose biographical information is
provided above, has co-managed the Fund since April 2013. Prior to March 2012,
this Fund was known as the Balanced Fund and was managed utilizing a different
investment strategy than that used currently.
Investors
Fund. The
Investors Fund is co-managed by Richard Eisinger, Haruki Toyama, and Joe
Maginot. Mr. Eisinger, Co-Head of Investments and Portfolio Manager/Analyst of
Madison, co-managed the Fund from January 2000 until May 2010 and again since
June 2019. Mr. Eisinger is responsible for the oversight of the firm's U.S.
Equity and International Equity Teams. Since he joined the firm in 1997, Mr.
Eisinger’s focus has been on the firm's mid cap and large cap portfolios. He has
served as portfolio manager on the U.S. Equity Team since 1998. Mr. Toyama, Head
of Mid Cap and Large Cap Equity Teams and Portfolio Manager/Analyst of Madison,
has co-managed the Fund since February 2022. He has also served as a portfolio
manager of the mid cap team since 2014. Prior to re-joining Madison in 2014, Mr.
Toyama was co-founder and President of Marcus Asset Management in Milwaukee
where he was portfolio manager of a long/short hedge fund. He was previously a
member of Madison’s equity team from 2002-2004, and prior to that he served in
portfolio management and analyst roles at MFS Investment Management and David L.
Babson & Company. Mr. Maginot, Vice President and Portfolio Manager/Analyst
of Madison, has co-managed the Fund since February 2022. Mr. Maginot has worked
in the financial services industry since 2012 and joined Madison in 2019 as an
equity analyst. Prior to joining Madison, he was an investment analyst at
Zuckerman Investment Group.
Sustainable
Equity Fund. The
Sustainable Equity Fund is co-managed by Maya Bittar, CFA and Dave Geisler. Ms.
Bittar, Vice President and portfolio Manager/Analyst of Madison, has co-managed
the Fund since December 2021. Ms. Bittar has more than 30 years of experience in
the financial services industry with over 20 years as a Portfolio Manager. She
specializes in personalized portfolio management for Madison’s private
clients
and co-manages the firm's Disciplined Equity strategy. Prior to joining Madison
in 2018 as a member of the U.S. equity team, Ms. Bittar previously worked as a
multi-sector analyst at Artisan Partners and as a Portfolio Manager at
Wellington Management. Ms. Bittar began her career at U.S. Bank, first as a
credit analyst and, later, a portfolio manager of a growth and income fund. Mr.
Geisler, Vice President and Portfolio Manager/Analyst of Madison, has co-managed
the Fund since December 2021. Since joining Madison in 2019, Mr. Geisler has
been a member of the U. S. equity team. He specializes in customized portfolio
management for Madison's private clients and co-manages the firm's Disciplined
Equity strategy. Mr. Geisler has been in the financial services industry since
2004. Prior to joining Madison, Mr. Geisler worked at Lateef Investment
Management, Artisan Partners, and Cowen and Company.
Mid
Cap Fund.
The Mid Cap Fund is co-managed by Richard Eisinger, Haruki Toyama and Andy
Romanowich, CFA. Mr. Eisinger, whose biographical information is provided above,
has co-managed the Fund since January 1998. Mr. Toyama, whose biographical
information is provided above, has co-managed the Fund since February 2015. Mr.
Romanowich, Vice President and Portfolio Manager/Analyst, has co-managed the
Fund since February 2019. Mr. Romanowich has been a member of the Madison equity
team since joining the firm in 2009. Prior to joining Madison, he was an equity
analyst at MEMBERS Capital Advisors and has worked in the financial services
industry since 2004.
Small
Cap Fund.
The Small Cap Fund is co-managed by Faraz Farzam, CFA and Aaron Garcia, CFA.
Messrs. Farzam and Garcia have co-managed the Fund since August 2019, and had
co-managed the Predecessor Fund, prior to its reorganization into the Small Cap
Fund effective August 30, 2019. Prior to joining Madison in 2019, Mr. Farzam,
Vice President and Portfolio Manager/Analyst, served on Broadview Advisors,
LLC's small cap strategy and all cap strategy as a portfolio manager from 2001
to August 2019. Previously, he worked with Strong Capital Management. Mr. Farzam
has worked in the financial services industry since 1999. Prior to joining
Madison in 2019, Mr. Garcia, Vice President and Portfolio Manager/Analyst,
served on Broadview Advisors, LLC's small cap strategy and all cap strategy as
an analyst and later as a portfolio manager from 2003 to August 2019.
Previously, he worked with Stifel Nicolaus as an associate analyst. Mr. Garcia
has worked in the financial services industry since 2002.
International
Stock Fund.
The International Stock Fund is co-managed by Thomas Tibbles, CFA, Patrick Tan,
and Alyssa Rudakas, CFA. Messrs. Tibbles and Tan, and Ms. Rudakas have
co-managed the Fund since February 2021. Prior to joining Madison in 2014, Mr.
Tibbles, Head of International Equity Team and Portfolio Manager/Analyst of
Madison, led the Global Equity Team at Hansberger Global Investors in Toronto,
Ontario. Mr. Tibbles was an initial founder of the International Equity Team in
1996 at Indago Capital Management, an affiliate of Canada Life. Mr. Tan,
Portfolio Manager/Analyst of Madison, is responsible for multi-sector coverage
for the international equity portfolios. Prior to joining Madison in 2014, Mr.
Tan was a senior member of the Global Equity Team at Hansberger Global Investors
in Toronto. Mr. Tan was an initial founder of the International Equity Team at
Indago Capital Management, an affiliate of Canada Life. Ms. Rudakas, Portfolio
Manager/Analyst of Madison, is responsible for multi-sector coverage for the
international equity portfolios. Prior to joining Madison in 2014, Ms. Rudakas
was a research associate on the International Equity Team at Hansberger Global
Investors in Toronto beginning in 2011. Ms. Rudakas began her career at Dundee
Securities Corporation where she worked as a licensed sales
assistant.
Information
regarding the portfolio managers’ compensation, their ownership of securities in
the Funds and the other accounts they manage can be found in the
SAI.
FINANCIAL
HIGHLIGHTS
The
financial highlights tables that follow are intended to help you understand the
Funds’ financial performance for the past five years (or since inception of the
fund if less than five years). Certain information reflects financial results
for a single fund share outstanding for the period presented. The total returns
in the table represent the rate that an investor would have earned (or lost) on
an investment in the fund, assuming reinvestment of all dividends and
distributions.
The
financial highlights for each of the periods presented below have been derived
from the Funds’ financial statements and financial highlights which have been
audited by an independent registered public accounting firm, Deloitte &
Touche LLP, whose reports, along with the Funds’ financial statements and
financial highlights, are incorporated by reference in the SAI and included in
the Funds’ annual reports, each of which is available upon request.
|
|
| |
|
Madison
Funds |
October
31, 2023 |
|
Financial
Highlights for a Share of Beneficial Interest
Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| CONSERVATIVE
ALLOCATION FUND |
|
| CLASS
A |
|
| CLASS
C |
|
| Year
Ended October 31, |
|
| Year
Ended October 31, |
|
| 2023 |
2022 |
2021 |
2020 |
2019 |
|
| 2023 |
2022 |
2021 |
2020 |
2019 |
| Net
Asset Value at beginning of period |
$8.85 |
$11.12 |
$11.15 |
$10.96 |
$10.39 |
|
| $9.00 |
$11.30 |
$11.32 |
$11.11 |
$10.48 |
| Income
from Investment Operations: |
|
|
|
|
|
|
|
|
|
|
| |
| Net
investment income |
0.21 |
0.20 |
0.10 |
0.131 |
0.361,2 |
|
| 0.15 |
0.13 |
0.01 |
0.041 |
0.291,2 |
|
Net
realized and unrealized gain (loss) on investments |
(0.08) |
| (1.77) |
| 0.63 |
| 0.46 |
|
0.682 |
|
| (0.09) |
| (1.81) |
| 0.64 |
| 0.48 |
|
0.682 |
| Total
from investment operations |
0.13 |
| (1.57) |
| 0.73 |
| 0.59 |
| 1.04 |
|
|
| 0.06 |
| (1.68) |
| 0.65 |
| 0.52 |
| 0.97 |
|
| Less
Distributions From: |
|
|
|
|
|
|
|
|
|
|
| |
| Net
investment income |
(0.20) |
| (0.19) |
| (0.18) |
| (0.19) |
| (0.18) |
|
|
| (0.13) |
| (0.11) |
| (0.09) |
| (0.10) |
| (0.05) |
|
| Capital
gains |
— |
| (0.51) |
| (0.58) |
| (0.21) |
| (0.29) |
|
|
| — |
| (0.51) |
| (0.58) |
| (0.21) |
| (0.29) |
|
| Total
distributions |
(0.20) |
| (0.70) |
| (0.76) |
| (0.40) |
| (0.47) |
|
|
| (0.13) |
| (0.62) |
| (0.67) |
| (0.31) |
| (0.34) |
|
| Net
increase (decrease) in net asset value |
(0.07) |
| (2.27) |
| (0.03) |
| 0.19 |
| 0.57 |
|
|
| (0.07) |
| (2.30) |
| (0.02) |
| 0.21 |
| 0.63 |
|
| Net
Asset Value at end of period |
$8.78 |
$8.85 |
$11.12 |
$11.15 |
$10.96 |
|
| $8.93 |
$9.00 |
$11.30 |
$11.32 |
$11.11 |
|
Total
Return (%)3 |
1.36 |
| (15.00) |
| 6.72 |
| 5.62 |
| 10.37 |
|
|
| 0.60 |
| (15.67) |
| 5.91 |
| 4.89 |
| 9.50 |
|
| Ratios/Supplemental
Data: |
|
|
|
|
|
|
|
|
|
|
| |
| Net
Assets at end of period (in 000’s) |
$30,510 |
$35,084 |
$45,932 |
$44,146 |
$42,662 |
|
| $12,558 |
$14,315 |
$20,154 |
$20,137 |
$20,303 |
| Ratios
of expenses to average net assets (%) |
0.71 |
| 0.71 |
| 0.71 |
| 0.70 |
| 0.70 |
|
|
| 1.46 |
| 1.46 |
| 1.46 |
| 1.45 |
| 1.45 |
|
| Ratio
of net investment income to average net assets (%) |
2.24 |
| 1.97 |
| 0.86 |
| 1.19 |
|
3.382 |
|
| 1.49 |
| 1.27 |
| 0.11 |
| 0.45 |
|
2.602 |
|
Portfolio
turnover (%)4 |
53 |
| 84 |
| 63 |
| 73 |
| 57 |
|
|
| 53 |
| 84 |
| 63 |
| 73 |
| 57 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
Net investment income (loss) calculated excluding permanent tax
adjustments to undistributed net investment income. |
|
2
In 2019, the Fund reported distributions of capital gains from investment
companies as part of net investment income in the financial highlights.
Had the Fund reported these capital gains as net realized and unrealized
gain (loss) on investments, net investment income, net realized and
unrealized gain (loss) on investments, and the ratio of net investment
income to average net assets would have been; $0.17, $0.87, and 1.64%,
respectively, for the class A Shares, and $0.10, $0.87, and 0.89%,
respectively, for the class C shares. |
|
3
Total
return without applicable sales charge. |
|
4
Portfolio turnover is calculated at the fund level and represents the
entire fiscal year or period. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| MODERATE
ALLOCATION FUND |
|
| CLASS
A |
|
| CLASS
C |
|
| Year
Ended October 31, |
|
| Year
Ended October 31, |
|
| 2023 |
2022 |
2021 |
2020 |
2019 |
|
| 2023 |
2022 |
2021 |
2020 |
2019 |
| Net
Asset Value at beginning of period |
$9.59 |
$12.22 |
$11.85 |
$11.76 |
$11.59 |
|
| $9.49 |
$12.09 |
$11.70 |
$11.61 |
$11.47 |
| Income
from Investment Operations: |
|
|
|
|
|
|
|
|
|
|
| |
| Net
investment income |
0.20 |
0.28 |
0.09 |
0.121 |
0.511,2 |
|
| 0.12 |
| 0.19 |
| (0.01) |
|
0.021 |
0.421,2 |
| Net
realized and unrealized gain (loss) on investments |
0.04 |
| (1.94) |
| 1.35 |
| 0.43 |
|
0.602 |
|
| 0.05 |
| (1.92) |
| 1.34 |
| 0.44 |
|
0.592 |
| Total
from investment operations |
0.24 |
| (1.66) |
| 1.44 |
| 0.55 |
| 1.11 |
|
|
| 0.17 |
| (1.73) |
| 1.33 |
| 0.46 |
| 1.01 |
|
| Less
Distributions From: |
|
|
|
|
|
|
|
|
|
|
| |
| Net
investment income |
(0.13) |
| (0.29) |
| (0.13) |
| (0.17) |
| (0.17) |
|
|
| (0.07) |
| (0.19) |
| — |
| (0.08) |
| (0.10) |
|
| Capital
gains |
— |
| (0.68) |
| (0.94) |
| (0.29) |
| (0.77) |
|
|
| — |
| (0.68) |
| (0.94) |
| (0.29) |
| (0.77) |
|
| Total
distributions |
(0.13) |
| (0.97) |
| (1.07) |
| (0.46) |
| (0.94) |
|
|
| (0.07) |
| (0.87) |
| (0.94) |
| (0.37) |
| (0.87) |
|
| Net
increase (decrease) in net asset value |
0.11 |
| (2.63) |
| 0.37 |
| 0.09 |
| 0.17 |
|
|
| 0.10 |
| (2.60) |
| 0.39 |
| 0.09 |
| 0.14 |
|
| Net
Asset Value at end of period |
$9.70 |
$9.59 |
$12.22 |
$11.85 |
$11.76 |
|
| $9.59 |
$9.49 |
$12.09 |
$11.70 |
$11.61 |
|
Total
Return (%)3 |
2.55 |
| (14.88) |
| 12.66 |
| 4.75 |
| 10.69 |
|
|
| 1.79 |
| (15.47) |
| 11.79 |
| 3.99 |
| 9.78 |
|
| Ratios/Supplemental
Data: |
|
|
|
|
|
|
|
|
|
|
| |
| Net
Assets at end of period (in 000’s) |
$85,230 |
$92,669 |
$119,035 |
$111,135 |
$112,916 |
|
| $5,507 |
$6,244 |
$ |
8,849 |
| $ |
9,230 |
| $ |
9,607 |
|
| Ratios
of expenses to average net assets (%) |
0.70 |
| 0.71 |
| 0.71 |
| 0.70 |
| 0.70 |
|
|
| 1.45 |
| 1.46 |
| 1.46 |
| 1.45 |
| 1.45 |
|
| Ratio
of net investment income to average net assets (%) |
1.97 |
| 2.54 |
| 0.70 |
| 0.96 |
|
4.422 |
|
| 1.22 |
| 1.83 |
| (0.03) |
| 0.22 |
|
3.682 |
|
Portfolio
turnover (%)4 |
67 |
| 95 |
| 71 |
| 87 |
| 64 |
|
|
| 67 |
| 95 |
| 71 |
| 87 |
| 64 |
|
|
|
| |
|
1
Net investment income (loss) calculated excluding permanent tax
adjustments to undistributed net investment income. |
|
2
In 2019, the Fund reported distributions of capital gains from investment
companies as part of net investment income in the financial highlights.
Had the Fund reported these capital gains as net realized and unrealized
gain (loss) on investments, net investment income, net realized and
unrealized gain (loss) on investments, and the ratio of net investment
income to average net assets would have been; $0.17, $0.94, and 1.39%,
respectively, for the class A Shares, and $0.08, $0.93, and 0.64%,
respectively, for the class C shares. |
|
3
Total
return without applicable sales charge. |
|
4
Portfolio
turnover is calculated at the fund level and represents the entire fiscal
year or period. |
|
|
| |
|
Madison
Funds | October 31, 2023 |
|
Financial
Highlights for a Share of Beneficial Interest
Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| AGGRESSIVE
ALLOCATION FUND |
|
|
| CLASS
A |
| CLASS
C |
|
|
| Year
Ended October 31, |
| Year
Ended October 31, |
|
|
| 2023 |
2022 |
2021 |
2020 |
2019 |
| 2023 |
2022 |
2021 |
2020 |
2019 |
|
| Net
Asset Value at beginning of period |
$9.83 |
$12.75 |
$11.81 |
$12.02 |
$12.01 |
| $9.45 |
$12.29 |
$11.42 |
$11.63 |
$11.66 |
|
| Income
from Investment Operations: |
|
|
|
|
|
|
|
|
|
|
| |
| Net
investment income |
0.18 |
0.33 |
0.08 |
0.101 |
0.561,2 |
| 0.08 |
| 0.24 |
| (0.01) |
|
0.031 |
0.481,2 |
|
| Net
realized and unrealized gain (loss) on investments |
0.17 |
| (2.07) |
| 1.89 |
| 0.33 |
|
0.572 |
| 0.19 |
| (2.00) |
| 1.82 |
| 0.30 |
|
0.542 |
|
| Total
from investment operations |
0.35 |
| (1.74) |
| 1.97 |
| 0.43 |
| 1.13 |
|
| 0.27 |
| (1.76) |
| 1.81 |
| 0.33 |
| 1.02 |
| |
| Less
Distributions From: |
|
|
|
|
|
|
|
|
|
|
| |
| Net
investment income |
(0.12) |
| (0.34) |
| (0.09) |
| (0.16) |
| (0.14) |
|
| (0.06) |
| (0.24) |
| — |
| (0.06) |
| (0.07) |
| |
| Capital
gains |
— |
| (0.84) |
| (0.94) |
| (0.48) |
| (0.98) |
|
| — |
| (0.84) |
| (0.94) |
| (0.48) |
| (0.98) |
| |
| Total
distributions |
(0.12) |
| (1.18) |
| (1.03) |
| (0.64) |
| (1.12) |
|
| (0.06) |
| (1.08) |
| (0.94) |
| (0.54) |
| (1.05) |
| |
| Net
increase (decrease) in net asset value |
0.23 |
| (2.92) |
| 0.94 |
| (0.21) |
| 0.01 |
|
| 0.21 |
| (2.84) |
| 0.87 |
| (0.21) |
| (0.03) |
| |
| Net
Asset Value at end of period |
$10.06 |
$9.83 |
$12.75 |
$11.81 |
$12.02 |
| $9.66 |
$9.45 |
$12.29 |
$11.42 |
$11.63 |
|
|
Total
Return (%)3 |
3.62 |
| (15.22) |
| 17.33 |
| 3.59 |
| 10.93 |
|
| 2.83 |
| (15.84) |
| 16.39 |
| 2.88 |
| 10.11 |
| |
| Ratios/Supplemental
Data: |
|
|
|
|
|
|
|
|
|
|
| |
| Net
Assets at end of period (in 000’s) |
$48,888 |
$48,969 |
$60,837 |
$56,089 |
$54,974 |
| $1,957 |
$2,283 |
$3,082 |
$2,655 |
$2,263 |
|
| Ratios
of expenses to average net assets (%) |
0.70 |
| 0.71 |
| 0.71 |
| 0.70 |
| 0.70 |
|
| 1.46 |
| 1.46 |
| 1.46 |
| 1.45 |
| 1.45 |
| |
| Ratio
of net investment income (loss) to average net assets (%) |
1.74 |
| 2.89 |
| 0.62 |
| 0.78 |
|
4.772 |
| 1.02 |
| 2.23 |
| (0.14) |
| (0.01) |
|
4.152 |
|
|
Portfolio
turnover (%)4 |
71 |
| 99 |
| 84 |
| 105 |
| 79 |
|
| 71 |
| 99 |
| 84 |
| 105 |
| 79 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
Net investment income (loss) calculated excluding permanent tax
adjustments to undistributed net investment income. |
|
|
2
In 2019, the Fund reported distributions of capital gains from investment
companies as part of net investment income in the financial highlights.
Had the Fund reported these capital gains as net realized and unrealized
gain (loss) on investments, net investment income, net realized and
unrealized gain (loss) on investments, and the ratio of net investment
income to average net assets would have been; $0.15, $0.98, and 1.25%,
respectively, for the class A Shares, and $0.07, $0.95, and 0.50%,
respectively, for the class C shares. |
|
|
3
Total
return without applicable sales charge. |
|
|
4
Portfolio turnover is calculated at the fund level and represents the
entire fiscal year or period. |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| DIVERSIFIED
INCOME FUND |
|
|
| CLASS
A |
| CLASS
C |
|
|
| Year
Ended October 31, |
| Year
Ended October 31, |
|
|
| 2023 |
2022 |
2021 |
2020 |
2019 |
| 2023 |
2022 |
2021 |
2020 |
2019 |
|
| Net
Asset Value at beginning of period |
$15.06 |
$18.42 |
$15.52 |
$16.37 |
$15.98 |
| $15.21 |
$18.58 |
$15.65 |
$16.48 |
$16.07 |
|
| Income
from Investment Operations: |
|
|
|
|
|
|
|
|
|
|
| |
| Net
investment income |
0.31 |
0.27 |
0.23 |
0.261 |
0.281 |
| 0.20 |
0.14 |
0.09 |
0.151 |
0.161 |
|
| Net
realized and unrealized gain (loss) on investments |
(0.47) |
| (1.54) |
| 3.11 |
| (0.04) |
| 1.64 |
|
| (0.48) |
| (1.55) |
| 3.14 |
| (0.03) |
| 1.66 |
| |
| Total
from investment operations |
(0.16) |
| (1.27) |
| 3.34 |
| 0.22 |
| 1.92 |
|
| (0.28) |
| (1.41) |
| 3.23 |
| 0.12 |
| 1.82 |
| |
| Less
Distributions From: |
|
|
|
|
|
|
|
|
|
|
| |
| Net
investment income |
(0.31) |
| (0.28) |
| (0.24) |
| (0.27) |
| (0.29) |
|
| (0.20) |
| (0.15) |
| (0.10) |
| (0.15) |
| (0.17) |
| |
| Capital
gains |
(0.89) |
| (1.81) |
| (0.20) |
| (0.80) |
| (1.24) |
|
| (0.89) |
| (1.81) |
| (0.20) |
| (0.80) |
| (1.24) |
| |
| Total
distributions |
(1.20) |
| (2.09) |
| (0.44) |
| (1.07) |
| (1.53) |
|
| (1.09) |
| (1.96) |
| (0.30) |
| (0.95) |
| (1.41) |
| |
| Net
increase (decrease) in net asset value |
(1.36) |
| (3.36) |
| 2.90 |
| (0.85) |
| 0.39 |
|
| (1.37) |
| (3.37) |
| 2.93 |
| (0.83) |
| 0.41 |
| |
| Net
Asset Value at end of period |
$13.70 |
$15.06 |
$18.42 |
$15.52 |
$16.37 |
| $13.84 |
$15.21 |
$18.58 |
$15.65 |
$16.48 |
|
|
Total
Return (%)2 |
(1.35) |
| (7.92) |
| 21.74 |
| 1.27 |
| 13.51 |
|
| (2.14) |
| (8.62) |
| 20.82 |
| 0.62 |
| 12.72 |
| |
| Ratios/Supplemental
Data: |
|
|
|
|
|
|
|
|
|
|
| |
| Net
Assets at end of period (in 000’s) |
$119,989 |
$136,578 |
$158,336 |
$134,213 |
$139,683 |
| $20,240 |
$22,524 |
$20,812 |
$16,888 |
$16,090 |
|
| Ratios
of expenses to average net assets (%) |
1.00 |
| 1.11 |
| 1.11 |
| 1.10 |
| 1.10 |
|
| 1.75 |
| 1.86 |
| 1.85 |
| 1.85 |
| 1.84 |
| |
| Ratio
of net investment income to average net assets (%) |
2.14 |
| 1.61 |
| 1.27 |
| 1.66 |
| 1.80 |
|
| 1.39 |
| 0.88 |
| 0.52 |
| 0.91 |
| 1.05 |
| |
|
Portfolio
turnover (%)3 |
118 |
| 32 |
| 34 |
| 31 |
| 34 |
|
| 118 |
| 32 |
| 34 |
| 31 |
| 34 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
Net
investment income (loss) calculated excluding permanent tax adjustments to
undistributed net investment income. |
|
|
2
Total
return without applicable sales charge. |
|
|
3
Portfolio
turnover is calculated at the fund level and represents the entire fiscal
year or period. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Madison
Funds | October 31, 2023 |
|
|
Financial
Highlights for a Share of Beneficial Interest
Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| TAX-FREE
VIRGINIA FUND |
| TAX-FREE
NATIONAL FUND |
|
|
| CLASS
Y |
| CLASS
Y |
|
|
| Year
Ended October 31, |
| Year
Ended October 31, |
|
|
| 2023 |
2022 |
2021 |
2020 |
2019 |
| 2023 |
2022 |
2021 |
2020 |
2019 |
|
| Net
Asset Value at beginning of period |
$10.33 |
$11.71 |
$11.89 |
$11.71 |
$11.08 |
| $9.73 |
$10.98 |
$11.08 |
$10.96 |
$10.41 |
|
| Income
from Investment Operations: |
|
|
|
|
|
|
|
|
|
|
| |
| Net
investment income |
0.19 |
0.18 |
0.19 |
0.201 |
0.231 |
| 0.20 |
0.18 |
0.18 |
0.211 |
0.241 |
|
| Net
realized and unrealized gain (loss) on investments |
(0.13) |
| (1.34) |
| (0.17) |
| 0.18 |
| 0.63 |
|
| (0.09) |
| (1.15) |
| (0.10) |
| 0.15 |
| 0.61 |
| |
| Total
from investment operations |
0.06 |
| (1.16) |
| 0.02 |
| 0.38 |
| 0.86 |
|
| 0.11 |
| (0.97) |
| 0.08 |
| 0.36 |
| 0.85 |
| |
| Less
Distributions From: |
|
|
|
|
|
|
|
|
|
|
| |
| Net
investment income |
(0.19) |
| (0.18) |
| (0.19) |
| (0.20) |
| (0.23) |
|
| (0.20) |
| (0.18) |
| (0.18) |
| (0.21) |
| (0.24) |
| |
| Capital
gains |
— |
| (0.04) |
| (0.01) |
| — |
| — |
|
| (0.07) |
| (0.10) |
| — |
| (0.03) |
| (0.06) |
| |
| Total
distributions |
(0.19) |
| (0.22) |
| (0.20) |
| (0.20) |
| (0.23) |
|
| (0.27) |
| (0.28) |
| (0.18) |
| (0.24) |
| (0.30) |
| |
| Net
increase (decrease) in net asset value |
(0.13) |
| (1.38) |
| (0.18) |
| 0.18 |
| 0.63 |
|
| (0.16) |
| (1.25) |
| (0.10) |
| 0.12 |
| 0.55 |
| |
| Net
Asset Value at end of period |
$10.20 |
$10.33 |
$11.71 |
$11.89 |
$11.71 |
| $9.57 |
$9.73 |
$10.98 |
$11.08 |
$10.96 |
|
|
Total
Return (%)2 |
0.56 |
| (10.01) |
| 0.10 |
| 3.24 |
| 7.78 |
|
| 1.06 |
| (8.98) |
| 0.75 |
| 3.36 |
| 8.20 |
| |
| Ratios/Supplemental
Data: |
|
|
|
|
|
|
|
|
|
|
| |
| Net
Assets at end of period (in 000’s) |
$16,575 |
$17,746 |
$20,620 |
$21,572 |
$22,225 |
| $17,114 |
$17,621 |
$22,331 |
$23,377 |
$23,807 |
|
| Ratios
of expenses to average net assets (%) |
0.86 |
| 0.86 |
| 0.86 |
| 0.85 |
| 0.85 |
|
| 0.76 |
| 0.76 |
| 0.76 |
| 0.75 |
| 0.75 |
| |
| Ratio
of net investment income to average net assets (%) |
1.82 |
| 1.65 |
| 1.57 |
| 1.66 |
| 1.96 |
|
| 2.02 |
| 1.74 |
| 1.65 |
| 1.91 |
| 2.19 |
| |
|
Portfolio
turnover (%)3 |
15 |
| 17 |
| 10 |
| 7 |
| 22 |
|
| 16 |
| 10 |
| 18 |
| 13 |
| 26 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
Net
investment income calculated excluding permanent tax adjustments to
undistributed net investment income. |
|
|
2
Total return without applicable sales charge. |
|
|
3
Portfolio turnover is calculated at the fund level and represents the
entire fiscal year or period. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| HIGH
QUALITY BOND FUND |
|
| CLASS
Y |
|
| Year
Ended October 31, |
|
| 2023 |
2022 |
2021 |
2020 |
2019 |
| Net
Asset Value at beginning of period |
$9.99 |
$11.15 |
$11.42 |
$11.11 |
$10.64 |
| Income
from Investment Operations: |
|
|
|
| |
| Net
investment income |
0.20 |
0.13 |
0.10 |
0.131 |
0.211 |
| Net
realized and unrealized gain (loss) on investments |
(0.01) |
| (1.11) |
| (0.24) |
| 0.32 |
| 0.47 |
|
| Total
from investment operations |
0.19 |
| (0.98) |
| (0.14) |
| 0.45 |
| 0.68 |
|
| Less
Distributions From: |
|
|
|
| |
| Net
investment income |
(0.19) |
| (0.12) |
| (0.10) |
| (0.14) |
| (0.21) |
|
| Capital
gains |
— |
| (0.06) |
| (0.03) |
| — |
| — |
|
| Total
distributions |
(0.19) |
| (0.18) |
| (0.13) |
| (0.14) |
| (0.21) |
|
| Net
increase (decrease) in net asset value |
— |
| (1.16) |
| (0.27) |
| 0.31 |
| 0.47 |
|
| Net
Asset Value at end of period |
$9.99 |
$9.99 |
$11.15 |
$11.42 |
$11.11 |
|
Total
Return (%)2 |
1.92 |
| (8.88) |
| (1.21) |
| 4.08 |
| 6.43 |
|
| Ratios/Supplemental
Data: |
|
|
|
| |
| Net
Assets at end of period (in 000’s) |
$42,307 |
$61,707 |
$115,682 |
$184,881 |
$90,407 |
| Ratios
of expenses to average net assets: |
|
|
|
| |
| Before
reimbursement of expenses by Adviser (%) |
0.50 |
| 0.50 |
| 0.50 |
| 0.49 |
| 0.49 |
|
| After
reimbursement of expenses by Adviser (%) |
0.50 |
| 0.46 |
| 0.40 |
| 0.46 |
| 0.49 |
|
| Ratio
of net investment income (loss) to average net assets: |
|
|
|
| |
| Before
reimbursement of expenses by Adviser (%) |
1.91 |
| 1.04 |
| 0.76 |
| 1.17 |
| 1.88 |
|
| After
reimbursement of expenses by Adviser (%) |
1.91 |
| 1.07 |
| 0.86 |
| 1.20 |
| 1.88 |
|
|
Portfolio
turnover (%)3 |
45 |
| 23 |
| 13 |
| 21 |
| 20 |
|
|
|
|
|
|
| |
|
1
Net
investment income (loss) calculated excluding permanent tax adjustments to
undistributed net investment income. |
|
2
Total return without applicable sales charge. |
|
3
Portfolio turnover is calculated at the fund level and represents the
entire fiscal year or period. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Madison
Funds | October 31, 2023 |
|
|
|
|
|
| |
|
Financial
Highlights for a Share of Beneficial Interest
Outstanding |
|
|
|
|
|
|
|
| |
|
| HIGH
QUALITY BOND FUND |
|
|
|
|
|
| |
|
| CLASS
I |
|
|
|
|
|
| |
|
|
Year
Ended October 31, |
|
Period
Ended
October
31, |
|
|
|
|
|
| |
|
| 2023 |
|
| 2022* |
|
|
|
|
|
| |
| Net
Asset Value at beginning of period |
| $10.05 |
|
|
| $10.84 |
|
|
|
|
|
| |
| Income
from Investment Operations: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Net
investment income |
| 0.22 |
|
|
| 0.09 |
|
|
|
|
|
| |
| Net
realized and unrealized gain (loss) on investments |
| (0.02) |
|
|
|
| (0.79) |
|
|
|
|
|
|
| |
| Total
from investment operations |
| 0.20 |
|
|
|
| (0.70) |
|
|
|
|
|
|
| |
| Less
Distributions From: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Net
investment income |
| (0.20) |
|
|
|
| (0.09) |
|
|
|
|
|
|
| |
| Total
distributions |
| (0.20) |
|
|
|
| (0.09) |
|
|
|
|
|
|
| |
| Net
increase (decrease) in net asset value |
| — |
|
|
|
| (0.79) |
|
|
|
|
|
|
| |
| Net
Asset Value at end of period |
| $10.05 |
|
|
| $10.05 |
|
|
|
|
|
| |
|
Total
Return (%)1 |
| 2.00 |
|
|
|
(6.44)2 |
|
|
|
|
|
| |
| Ratios/Supplemental
Data: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Net
Assets at end of period (in 000’s) |
| $11,248 |
|
|
| $15,078 |
|
|
|
|
|
| |
| Ratios
of expenses to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Before
reimbursement of expenses by Adviser (%) |
| 0.41 |
|
|
|
0.413 |
|
|
|
|
|
| |
| After
reimbursement of expenses by Adviser (%) |
| 0.41 |
|
|
|
0.413 |
|
|
|
|
|
| |
| Ratio
of net investment income (loss) to average net assets: |
|
|
|
|
|
|
|
|
|
|
|
| |
| Before
reimbursement of expenses by Adviser (%) |
| 2.00 |
|
|
|
1.323 |
|
|
|
|
|
| |
| After
reimbursement of expenses by Adviser (%) |
| 2.00 |
|
|
|
1.323 |
|
|
|
|
|
| |
|
Portfolio
turnover (%)4 |
|
45 |
|
|
|
232 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
*
Class I shares commenced operations effective March 1,
2022. |
|
|
|
|
|
| |
|
1
Total
return without applicable sales charge. |
|
|
|
|
|
| |
|
2
Not annualized. |
|
|
|
|
|
| |
|
3
Annualized. |
|
|
|
|
|
| |
|
4
Portfolio turnover is calculated at the fund level and represents the
entire fiscal year or period. |
|
|
|
|
|
| |
|
|
| |
|
Madison
Funds | October 31, 2023 |
|
Financial
Highlights for a Share of Beneficial Interest
Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| CORE
BOND FUND |
|
| CLASS
A |
| CLASS
Y |
|
| Year
Ended October 31, |
| Year
Ended October 31, |
|
|
2023 |
2022 |
2021 |
2020 |
2019 |
| 2023 |
2022 |
2021 |
2020 |
2019 |
| Net
Asset Value at beginning of period |
$8.65 |
$10.45 |
$10.78 |
$10.28 |
$9.55 |
| $8.60 |
$10.39 |
$10.71 |
$10.25 |
$9.52 |
| Income
from Investment Operations: |
|
|
|
|
|
|
|
|
|
| |
| Net
investment income |
0.24 |
0.16 |
0.14 |
0.181 |
0.241 |
| 0.25 |
| 0.13 |
| (0.02) |
|
0.201 |
0.251 |
| Net
realized and unrealized gain (loss) on investments |
(0.23) |
| (1.75) |
| (0.12) |
| 0.53 |
| 0.74 |
|
| (0.21) |
| (1.69) |
| 0.10 |
| 0.52 |
| 0.75 |
|
| Total
from investment operations |
0.01 |
| (1.59) |
| 0.02 |
| 0.71 |
| 0.98 |
|
| 0.04 |
| (1.56) |
| 0.08 |
| 0.72 |
| 1.00 |
|
| Less
Distributions From: |
|
|
|
|
|
|
|
|
|
| |
| Net
investment income |
(0.23) |
| (0.15) |
| (0.14) |
| (0.19) |
| (0.25) |
|
| (0.26) |
| (0.17) |
| (0.19) |
| (0.24) |
| (0.27) |
|
| Capital
gains |
— |
| (0.06) |
| (0.21) |
| (0.02) |
| — |
|
| — |
| (0.06) |
| (0.21) |
| (0.02) |
| — |
|
| Total
distributions |
(0.23) |
| (0.21) |
| (0.35) |
| (0.21) |
| (0.25) |
|
| (0.26) |
| (0.23) |
| (0.40) |
| (0.26) |
| (0.27) |
|
| Net
increase (decrease) in net asset value |
(0.22) |
| (1.80) |
| (0.33) |
| 0.50 |
| 0.73 |
|
| (0.22) |
| (1.79) |
| (0.32) |
| 0.46 |
| 0.73 |
|
| Net
Asset Value at end of period |
$8.43 |
$8.65 |
$10.45 |
$10.78 |
$10.28 |
| $8.38 |
$8.60 |
$10.39 |
$10.71 |
$10.25 |
|
Total
Return (%)2 |
0.07 |
| (15.47) |
| 0.21 |
| 7.00 |
| 10.37 |
|
| 0.32 |
| (15.25) |
| 0.73 |
| 7.13 |
| 10.67 |
|
| Ratios/Supplemental
Data: |
|
|
|
|
|
|
|
|
|
| |
| Net
Assets at end of period (in 000’s) |
$29,453 |
$32,990 |
$ |
43,577 |
| $ |
47,304 |
| $ |
28,902 |
|
| $6,482 |
$6,954 |
$ |
10,783 |
| $ |
102,811 |
| $ |
121,000 |
|
| Ratios
of expenses to average net assets (%) |
0.85 |
| 0.85 |
| 0.87 |
| 0.90 |
| 0.90 |
|
| 0.60 |
| 0.60 |
| 0.65 |
| 0.65 |
| 0.65 |
|
| Ratio
of net investment income to average net assets (%) |
2.65 |
| 1.57 |
| 1.31 |
| 1.78 |
| 2.35 |
|
| 2.90 |
| 1.80 |
| 1.65 |
| 2.03 |
| 2.60 |
|
|
Portfolio
turnover (%)3 |
30 |
| 21 |
| 30 |
| 61 |
| 36 |
|
| 30 |
| 21 |
| 30 |
| 61 |
| 36 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
Net
investment income (loss) calculated excluding permanent tax adjustments to
undistributed net investment income. |
|
2
Total
return without applicable sales charge. |
|
3
Portfolio
turnover is calculated at the fund level and represents the entire fiscal
year or period. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| CORE
BOND FUND |
|
| CLASS
I |
| CLASS
R6 |
|
| Year
Ended |
| Period
Ended |
|
Year
Ended |
| Period
Ended |
|
| October
31, |
| October
31, |
| October
31, |
| October
31, |
|
|
2023 |
| 2022 |
|
2021* |
| 2023 |
|
2022** |
| Net
Asset Value at beginning of period |
$8.56 |
| $10.36 |
| $10.39 |
| $8.56 |
| $9.90 |
| Income
from Investment Operations: |
|
|
|
|
|
|
|
| |
| Net
investment income |
0.27 |
| 0.17 |
| 0.11 |
| 0.27 |
| 0.13 |
| Net
realized and unrealized gain (loss) on investments |
(0.22) |
| (1.72) |
| (0.02) |
| (0.22) |
| (1.33) |
| Total
from investment operations |
0.05 |
| (1.55) |
| 0.09 |
| 0.05 |
| (1.20) |
| Less
Distributions From: |
|
|
|
|
|
|
|
| |
| Net
investment income |
(0.27) |
| (0.19) |
| (0.12) |
| (0.27) |
| (0.14) |
| Capital
gains |
— |
| (0.06) |
| — |
| — |
| — |
| Total
distributions |
(0.27) |
| (0.25) |
| (0.12) |
| (0.27) |
| (0.14) |
| Net
increase (decrease) in net asset value |
(0.22) |
| (1.80) |
| (0.03) |
| (0.22) |
| (1.34) |
| Net
Asset Value at end of period |
$8.34 |
| $8.56 |
| $10.36 |
| $8.34 |
| $8.56 |
|
Total
Return (%)1 |
0.42 |
| (15.20) |
|
0.882 |
| 0.50 |
|
(12.22)2 |
| Ratios/Supplemental
Data: |
|
|
|
|
|
|
|
| |
| Net
Assets at end of period (in 000’s) |
$52,699 |
| $45,963 |
| $133,692 |
| $92,952 |
| $93,641 |
| Ratios
of expenses to average net assets (%) |
0.50 |
| 0.50 |
|
0.503 |
| 0.42 |
|
0.423 |
| Ratio
of net investment income to average net assets (%) |
3.01 |
| 1.77 |
|
1.573 |
| 3.09 |
|
2.203 |
|
Portfolio
turnover (%)4 |
30 |
| 21 |
|
302 |
| 30 |
|
212 |
|
|
|
|
|
|
|
|
|
| |
|
*
Class I shares commenced operations effective March 1,
2021. |
|
**
Class R6 shares commenced operations effective March 1,
2022. |
|
1
Total
return without applicable sales charge. |
|
2
Not annualized. |
|
3
Annualized. |
|
4
Portfolio
turnover is calculated at the fund level and represents the entire fiscal
year or period. |
|
|
| |
|
Madison
Funds | October 31, 2023 |
|
Financial
Highlights for a Share of Beneficial Interest
Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| COVERED
CALL & EQUITY INCOME FUND |
|
| CLASS
A |
| CLASS
C |
CLASS
Y |
|
| Year
Ended October 31, |
|
| Year
Ended October 31, |
| Year
Ended October 31, |
|
| 2023 |
2022 |
2021 |
2020 |
2019 |
|
| 2023 |
2022 |
2021 |
2020 |
2019 |
2023 |
2022 |
2021 |
2020 |
2019 |
|
Net
Asset Value
at
beginning of period |
$9.19 |
$9.60 |
$7.80 |
$7.84 |
$8.52 |
|
| $8.27 |
$8.74 |
$7.19 |
$7.31 |
$8.04 |
| $9.57 |
$9.95 |
$8.05 |
$8.06 |
$8.73 |
| Income
from Investment Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Net
investment income (loss) |
0.32 |
0.05 |
0.02 |
(0.09)1 |
0.031 |
|
| 0.59 |
| 0.05 |
| (0.08) |
|
(0.18)1 |
(0.05)1 |
| 0.17 |
| (0.21) |
| 0.04 |
(0.39)1 |
0.121 |
| Net
realized and unrealized gain (loss) on investments |
0.33 |
| 0.17 |
| 2.37 |
| 0.60 |
| 0.05 |
|
|
| (0.06) |
| 0.10 |
| 2.21 |
| 0.60 |
| 0.07 |
|
| 0.54 |
| 0.46 |
| 2.45 |
| 0.94 |
| (0.02) |
|
| Total
from investment operations |
0.65 |
| 0.22 |
| 2.39 |
| 0.51 |
| 0.08 |
|
|
| 0.53 |
| 0.15 |
| 2.13 |
| 0.42 |
| 0.02 |
|
| 0.71 |
| 0.25 |
| 2.49 |
| 0.55 |
| 0.10 |
|
| Less
Distributions From: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Net
investment income |
(0.66) |
| (0.43) |
| (0.43) |
| (0.39) |
| (0.44) |
|
|
| (0.65) |
| (0.42) |
| (0.42) |
| (0.38) |
| (0.43) |
|
| (0.67) |
| (0.43) |
| (0.43) |
| (0.40) |
| (0.45) |
|
| Capital
gains |
— |
| (0.20) |
| (0.16) |
| (0.16) |
| (0.32) |
|
|
| — |
| 0.20 |
| (0.16) |
| (0.16) |
| (0.32) |
|
| — |
| (0.20) |
| (0.16) |
| (0.16) |
| (0.32) |
|
| Total
distributions |
(0.66) |
| (0.63) |
| (0.59) |
| (0.55) |
| (0.76) |
|
|
| (0.65) |
| (0.62) |
| (0.58) |
| (0.54) |
| (0.75) |
|
| (0.67) |
| (0.63) |
| (0.59) |
| (0.56) |
| (0.77) |
|
| Net
increase (decrease) in net asset value |
(0.01) |
| (0.41) |
| 1.80 |
| (0.04) |
| (0.68) |
|
|
| (0.12) |
| (0.47) |
| 1.55 |
| (0.12) |
| (0.73) |
|
| 0.04 |
| (0.38) |
| 1.90 |
| (0.01) |
| (0.67) |
|
|
Net
Asset Value
at
end of period |
$9.18 |
$9.19 |
$9.60 |
$7.80 |
$7.84 |
|
| $8.15 |
$8.27 |
$8.74 |
$7.19 |
$7.31 |
| $9.61 |
$9.57 |
$9.95 |
$8.05 |
$8.06 |
|
Total
Return
(%)2 |
7.18 |
| 2.50 |
| 31.18 |
| 7.10 |
| 1.46 |
|
|
| 6.41 |
| 1.92 |
| 30.17 |
| 6.31 |
| 0.68 |
|
| 7.49 |
| 2.78 |
| 31.54 |
| 7.34 |
| 1.60 |
|
| Ratios/Supplemental
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Net
Assets at end of period (in 000’s) |
$20,690 |
$14,044 |
$14,811 |
$11,996 |
$13,748 |
|
| $14,192 |
$8,365 |
$8,336 |
$7,156 |
$8,191 |
| $57,277 |
$36,964 |
$66,982 |
$59,966 |
$102,018 |
| Ratios
of expenses to average net assets (%) |
1.26 |
| 1.26 |
| 1.26 |
| 1.25 |
| 1.25 |
|
|
| 2.01 |
| 2.01 |
| 2.01 |
| 2.01 |
| 2.00 |
|
| 1.01 |
| 1.01 |
| 1.01 |
| 1.01 |
| 1.00 |
|
| Ratio
of net investment income (loss) to average net assets (%) |
1.50 |
| 0.57 |
| 0.09 |
| 0.70 |
| 1.05 |
|
|
| 0.75 |
| (0.18) |
| (0.66) |
| (0.05) |
| 0.29 |
|
| 1.75 |
| 0.84 |
| 0.34 |
| 0.98 |
| 1.28 |
|
|
Portfolio
turnover (%)3 |
102 |
| 99 |
| 162 |
| 108 |
| 116 |
|
|
| 102 |
| 99 |
| 162 |
| 108 |
| 116 |
|
| 102 |
| 99 |
| 162 |
| 108 |
| 116 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
Net
investment income (loss) calculated excluding permanent tax adjustments to
undistributed net investment income. |
|
2
Total
return without applicable sales charge. |
|
3
Portfolio
turnover is calculated at the fund level and represents the entire fiscal
year or period. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| COVERED
CALL & EQUITY INCOME FUND |
|
|
|
CLASS
I1 |
|
|
|
Year
Ended October 31, |
|
Period
Ended October 31, |
|
|
|
| 2023 |
|
| 2022 |
|
Net
Asset Value
at
beginning of period |
$9.57 |
|
|
| $9.79 |
|
| Income
from Investment Operations: |
|
|
|
|
| |
| Net
investment income |
0.29 |
|
|
| 0.38 |
|
| Net
realized and unrealized gain (loss) on investments |
0.43 |
|
|
|
| (0.18) |
| |
| Total
from investment operations |
0.72 |
|
|
|
| 0.20 |
| |
| Less
Distributions From: |
|
|
|
|
| |
| Net
investment income |
(0.67) |
|
|
|
| (0.42) |
| |
| Total
distributions |
(0.67) |
|
|
|
| (0.42) |
| |
| Net
increase (decrease) in net asset value |
0.05 |
|
|
|
| (0.22) |
| |
|
Net
Asset Value
at
end of period |
$9.62 |
|
|
| $9.57 |
|
|
Total
Return
(%)2 |
7.61 |
|
|
|
|
2.223 |
|
| Ratios/Supplemental
Data: |
|
|
|
|
| |
| Net
Assets at end of period (in 000’s) |
$150,951 |
|
|
| $75,060 |
|
| Ratios
of expenses to average net assets (%) |
0.96 |
|
|
|
0.964 |
|
| Ratio
of net investment income (loss) to average net assets (%) |
1.80 |
|
|
|
1.064 |
|
|
Portfolio
turnover (%)5 |
102 |
|
|
|
993 |
|
|
|
| |
|
1
Class
I shares commenced operations effective March 1, 2022. |
|
2
Total return without applicable sales charge. |
|
3
Not annualized. |
|
4
Annualized |
|
5
Portfolio
turnover is calculated at the fund level and represents the entire fiscal
year or period. |
|
|
| |
|
Madison
Funds | October 31, 2023 |
|
Financial
Highlights for a Share of Beneficial Interest
Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| COVERED
CALL & EQUITY INCOME FUND |
|
| CLASS
R6 |
|
| Year
Ended October 31, |
|
| 2023 |
2022 |
2021 |
2020 |
2019 |
|
Net
Asset Value
at
beginning of period |
$9.74 |
$10.12 |
$8.17 |
$8.16 |
$8.81 |
| Income
from Investment Operations: |
|
|
|
| |
| Net
investment income (loss) |
0.03 |
0.04 |
0.17 |
(0.45)1 |
0.181 |
| Net
realized and unrealized gain (loss) on investments |
0.71 |
| 0.23 |
| 2.37 |
| 1.02 |
| (0.06) |
|
| Total
from investment operations |
0.74 |
| 0.27 |
| 2.54 |
| 0.57 |
| 0.12 |
|
| Less
Distributions From: |
|
|
|
| |
| Net
investment income |
(0.67) |
| (0.45) |
| (0.43) |
| (0.40) |
| (0.45) |
|
| Capital
gains |
— |
| (0.20) |
| (0.16) |
| (0.16) |
| (0.32) |
|
| Total
distributions |
(0.67) |
| (0.65) |
| (0.59) |
| (0.56) |
| (0.77) |
|
| Net
increase (decrease) in net asset value |
0.07 |
| (0.38) |
| 1.95 |
| 0.01 |
| (0.65) |
|
|
Net
Asset Value
at
end of period |
$9.81 |
$9.74 |
$10.12 |
$8.17 |
$8.16 |
|
Total
Return
(%)2 |
7.71 |
| 2.89 |
| 31.69 |
| 7.51 |
| 1.82 |
|
| Ratios/Supplemental
Data: |
|
|
|
| |
| Net
Assets at end of period (in 000’s) |
$1,178 |
$765 |
$544 |
$1,439 |
$2,385 |
| Ratios
of expenses to average net assets (%) |
0.88 |
| 0.88 |
| 0.88 |
| 0.87 |
| 0.87 |
|
| Ratio
of net investment income) to average net assets (%) |
1.85 |
| 0.95 |
| 0.60 |
| 1.10 |
| 1.41 |
|
|
Portfolio
turnover (%)3 |
102 |
| 99 |
| 162 |
| 108 |
| 116 |
|
|
|
1
Net investment income (loss) calculated excluding permanent tax
adjustments to undistributed net investment income. |
|
2
Total return without applicable sales charge. |
|
3
Portfolio turnover is calculated at the fund level and represents the
entire fiscal year or period. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| DIVIDEND
INCOME FUND |
|
| Class
A* |
|
| Year
Ended |
| Year
Ended |
| Year
Ended |
| Period
Ended |
|
| October
31, |
| October
31, |
| October
31, |
| October
31, |
|
| 2023 |
| 2022 |
| 2021 |
| 2020 |
|
Net
Asset Value
at
beginning of period |
$29.27 |
| $34.13 |
| $26.10 |
| $25.17 |
| Income
from Investment Operations: |
|
|
|
|
|
| |
| Net
investment income |
0.56 |
| 0.52 |
| 0.39 |
|
0.161 |
| Net
realized and unrealized gain (loss) on investments |
(1.90) |
|
| (1.73) |
|
| 8.06 |
|
| 0.98 |
|
| Total
from investment operations |
(1.34) |
|
| (1.21) |
|
| 8.45 |
|
| 1.14 |
|
| Less
Distributions From: |
|
|
|
|
|
| |
| Net
investment income |
(0.58) |
|
| (0.44) |
|
| (0.42) |
|
| (0.21) |
|
| Capital
gains |
(2.01) |
|
| (3.21) |
|
| — |
|
| — |
|
| Total
distributions |
(2.59) |
|
| (3.65) |
|
| (0.42) |
|
| (0.21) |
|
| Net
increase (decrease) in net asset value |
(3.93) |
|
| (4.86) |
|
| 8.03 |
|
| 0.93 |
|
|
Net
Asset Value
at
end of period |
$25.34 |
| $29.27 |
| $34.13 |
| $26.10 |
|
Total
Return
(%)2 |
(5.23) |
|
| (4.23) |
|
| 32.52 |
|
4.533 |
| Ratios/Supplemental
Data: |
|
|
|
|
|
| |
| Net
Assets at end of period (in 000’s) |
$48,746 |
| $55,902 |
| $62,716 |
| $51,207 |
| Ratios
of expenses to average net assets (%) |
1.16 |
| 1.16 |
| 1.16 |
|
1.174 |
| Ratio
of net investment income (loss) to average net assets ($) |
1.97 |
| 1.64 |
| 1.25 |
|
1.094 |
|
Portfolio
turnover (%)5 |
26 |
| 33 |
| 31 |
|
333 |
|
|
| |
|
∗
Class
A shares commenced operations effective June 1, 2020. |
|
1
Net
investment income (loss) calculated excluding permanent tax adjustments to
undistributed net investment income. |
|
2
Total
return without applicable sales charge. |
|
3
Not Annualized. |
|
4
Annualized. |
|
5
Portfolio turnover is calculated at the fund level and represents the
entire fiscal year or period. |
|
|
| |
|
Madison
Funds | October 31, 2023 |
|
Financial
Highlights for a Share of Beneficial Interest
Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| DIVIDEND
INCOME FUND |
|
| CLASS
Y |
|
| Year
Ended October 31, |
|
| 2023 |
2022 |
2021 |
2020 |
2019 |
|
Net
Asset Value
at
beginning of period |
$29.29 |
$34.19 |
$26.14 |
$27.65 |
$27.01 |
| Income
from Investment Operations: |
|
|
|
| |
| Net
investment income |
0.69 |
0.60 |
0.50 |
0.511 |
0.461 |
| Net
realized and unrealized gain (loss) on investments |
(1.96) |
| (1.73) |
| 8.03 |
| (0.88) |
| 3.12 |
|
| Total
from investment operations |
(1.27) |
| (1.13) |
| 8.53 |
| (0.37) |
| 3.58 |
|
| Less
Distributions From: |
|
|
|
| |
| Net
investment income |
(0.65) |
| (0.56) |
| (0.48) |
| (0.45) |
| (0.43) |
|
| Capital
gains |
(2.01) |
| (3.21) |
| — |
| (0.69) |
| (2.51) |
|
| Total
distributions |
(2.66) |
| (3.77) |
| (0.48) |
| (1.14) |
| (2.94) |
|
| Net
increase (decrease) in net asset value |
(3.93) |
| (4.90) |
| 8.05 |
| (1.51) |
| 0.64 |
|
|
Net
Asset Value
at
end of period |
$25.36 |
$29.29 |
$34.19 |
$26.14 |
$27.65 |
|
Total
Return
(%)2 |
(4.99) |
| (3.98) |
| 32.81 |
| (1.42) |
| 15.48 |
|
| Ratios/Supplemental
Data: |
|
|
|
| |
| Net
Assets at end of period (in 000’s) |
$98,291 |
$165,998 |
$188,287 |
$171,733 |
$220,725 |
| Ratios
of expenses to average net assets: |
|
|
|
| |
| Before
reimbursement of expenses by Adviser (%) |
0.91 |
| 0.91 |
| 0.91 |
| 1.02 |
| 1.10 |
|
| After
reimbursement of expenses by Adviser (%) |
0.91 |
| 0.91 |
| 0.91 |
| 0.93 |
| 0.95 |
|
| Ratio
of net investment income (loss) to average net assets: |
|
|
|
| |
|
Before
reimbursement of expenses by Adviser (%) |
2.23 |
| 1.89 |
| 1.50 |
| 1.72 |
| 1.64 |
|
| After
reimbursement and waiver of expenses by Adviser (%) |
2.23 |
| 1.89 |
| 1.50 |
| 1.81 |
| 1.79 |
|
|
Portfolio
turnover (%)3 |
26 |
| 33 |
| 31 |
| 33 |
| 28 |
|
|
|
|
|
|
| |
| 1
Net investment income (loss) calculated excluding permanent tax
adjustments to undistributed net investment income |
|
2
Total
return without applicable sales charge. |
|
3
Portfolio turnover is calculated at the fund level and represents the
entire fiscal year or period. |
|
|
| |
|
Madison
Funds | October 31, 2023 |
|
Financial
Highlights for a Share of Beneficial Interest
Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| DIVIDEND
INCOME FUND |
|
|
| Class
I |
|
|
|
|
| Period
Ended |
|
|
|
Year
Ended October 31, |
| October
31, |
|
|
| 2023 |
| 2022 |
| 2021 |
|
20201 |
|
|
Net
Asset Value
at
beginning of period |
$29.27 |
| $34.20 |
| $26.14 |
| $27.19 |
|
| Income
from Investment Operations: |
|
|
|
|
|
|
| |
| Net
investment income |
0.67 |
| 0.63 |
| 0.52 |
|
0.062 |
|
| Net
realized and unrealized gain (loss) on investments |
(1.91) |
| (1.73) |
| 8.05 |
| (1.02) |
| |
| Total
from investment operations |
(1.24) |
| (1.10) |
| 8.57 |
| (0.96) |
| |
| Less
Distributions From: |
|
|
|
|
|
|
| |
| Net
investment income |
(0.68) |
| (0.62) |
| (0.51) |
| (0.09) |
| |
| Capital
gains |
(2.01) |
| (3.21) |
| — |
| — |
| |
| Total
distributions |
(2.69) |
| (3.83) |
| (0.51) |
| (0.09) |
| |
| Net
increase (decrease) in net asset value |
(3.93) |
| (4.93) |
| 8.06 |
| (1.05) |
| |
|
Net
Asset Value
at
end of period |
$25.34 |
| $29.27 |
| $34.20 |
| $26.14 |
|
|
Total
Return
(%)3 |
(4.90) |
| (3.88) |
| 32.95 |
|
(3.53)4 |
|
| Ratios/Supplemental
Data: |
|
|
|
|
|
|
| |
| Net
Assets at end of period (in 000’s) |
$38,826 |
| $59,812 |
| $72,215 |
| $51,725 |
|
| Ratios
of expenses to average net assets: |
|
|
|
|
|
|
| |
| Before
reimbursement of expenses by Adviser (%) |
0.81 |
| 0.81 |
| 0.81 |
|
0.825 |
|
| After
reimbursement of expenses by Adviser (%) |
0.81 |
| 0.81 |
| 0.81 |
|
0.825 |
|
| Ratio
of net investment income (loss) to average net assets |
|
|
|
|
|
|
| |
|
Before
reimbursement of expenses by Adviser (%) |
2.34 |
| 2.02 |
| 1.60 |
|
1.555 |
|
| After
reimbursement and waiver of expenses by Adviser (%) |
2.34 |
| 2.02 |
| 1.60 |
|
1.555 |
|
|
Portfolio
turnover (%)6 |
26 |
| 33 |
| 31 |
|
334 |
|
|
|
|
|
|
|
|
|
| |
|
1
Class I shares commenced operations effective September 1,
2020. |
|
|
2
Net
investment income (loss) calculated excluding permanent tax adjustments to
undistributed net investment income. |
|
3
Total
return without applicable sales charge. |
|
4
Not Annualized. |
|
5
Annualized. |
|
6
Portfolio turnover is calculated at the fund level and represents the
entire fiscal year or period. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| DIVIDEND
INCOME FUND |
|
|
|
| CLASS
R6 |
| |
|
|
|
Year
Ended |
| Period
Ended |
| |
|
|
| October
31, |
| October
31, |
| |
|
|
| 2023 |
|
2022* |
| |
|
Net
Asset Value
at
beginning of period |
$29.28 |
| $31.05 |
| |
| Income
from Investment Operations: |
|
|
|
| |
| Net
investment income |
0.63 |
| 0.39 |
| |
| Net
realized and unrealized gain (loss) on investments |
(1.85) |
| (1.72) |
| |
| Total
from investment operations |
(1.22) |
| (1.33) |
| |
| Less
Distributions From: |
|
|
|
| |
| Net
investment income |
(0.70) |
| (0.44) |
| |
|
Capital
gains |
(2.01) |
| — |
| |
| Total
distributions |
(2.71) |
| (0.44) |
| |
| Net
increase (decrease) in net asset value |
(3.93) |
| (1.77) |
| |
|
Net
Asset Value
at
end of period |
$25.35 |
| $29.28 |
| |
|
Total
Return
(%)1 |
(4.82) |
|
(4.25)2 |
| |
| Ratios/Supplemental
Data: |
|
|
|
| |
| Net
Assets at end of period (in 000’s) |
$11,657 |
| $19,575 |
| |
| Ratios
of expenses to average net assets: |
|
|
|
| |
| Before
reimbursement of expenses by Adviser (%) |
0.73 |
|
0.733 |
| |
| After
reimbursement of expenses by Adviser (%) |
0.73 |
|
0.733 |
| |
| Ratio
of net investment income (loss) to average net assets: |
|
|
|
| |
| After
reimbursement and waiver of expenses by Adviser (%) |
2.41 |
| 2.03 |
| |
|
Portfolio
turnover (%)4 |
26 |
|
332 |
| |
|
|
|
|
|
|
| |
|
*
Class R6 shares commenced operations effective March 1,
2022. |
|
|
1
Total
return without applicable sales charge. |
|
2
Not Annualized. |
|
3
Annualized. |
|
4
Portfolio turnover is calculated at the fund level and represents the
entire fiscal year or period. |
|
|
| |
|
Madison
Funds | October 31, 2023 |
|
Financial
Highlights for a Share of Beneficial Interest
Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| INVESTORS
FUND |
|
| CLASS
A |
| CLASS
Y |
| CLASS
R6 |
|
| Year
Ended October 31, |
| Year
Ended October 31, |
| Year
Ended October 31, |
|
| 2023 |
2022 |
2021 |
2020 |
2019 |
| 2023 |
2022 |
2021 |
2020 |
2019 |
|
2023 |
2022 |
2021 |
2020 |
2019 |
| Net
Asset Value at beginning of period |
$23.65 |
$28.72 |
$23.81 |
$23.76 |
$23.85 |
| $23.72 |
$28.78 |
$23.84 |
$23.83 |
$23.92 |
| $23.95 |
$29.09 |
$24.12 |
$24.06 |
$24.07 |
| Income
from Investment Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Net
investment income (loss) |
(0.01) |
| (0.01) |
| (0.01) |
|
0.041 |
0.061 |
| 0.06 |
0.05 |
0.12 |
0.141 |
0.121 |
| 0.11 |
0.08 |
0.11 |
0.031 |
0.161 |
| Net
realized and unrealized gain (loss) on investments |
3.09 |
| (2.92) |
| 7.29 |
| 1.31 |
| 3.39 |
|
| 3.09 |
| (2.93) |
| 7.24 |
| 1.29 |
| 3.39 |
|
| 3.10 |
| (2.93) |
| 7.37 |
| 1.45 |
| 3.43 |
|
| Total
from investment operations |
3.08 |
| (2.93) |
| 7.28 |
| 1.35 |
| 3.45 |
|
| 3.15 |
| (2.88) |
| 7.36 |
| 1.43 |
| 3.51 |
|
| 3.21 |
| (2.85) |
| 7.48 |
| 1.48 |
| 3.59 |
| Less
Distributions From: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Net
investment income |
— |
| — |
| — |
| — |
| (0.10) |
|
| (0.06) |
| (0.04) |
| (0.05) |
| (0.12) |
| (0.16) |
|
| (0.14) |
| (0.15) |
| (0.14) |
| (0.12) |
| (0.16) |
|
| Capital
gains |
(1.45) |
| (2.14) |
| (2.37) |
| (1.30) |
| (3.44) |
|
| (1.45) |
| (2.14) |
| (2.37) |
| (1.30) |
| (3.44) |
|
| (1.45) |
| (2.14) |
| (2.37) |
| (1.30) |
| (3.44) |
|
| Total
distributions |
(1.45) |
| (2.14) |
| (2.37) |
| (1.30) |
| (3.54) |
|
| (1.51) |
| (2.18) |
| (2.42) |
| (1.42) |
| (3.60) |
|
| (1.59) |
| (2.29) |
| (2.51) |
| (1.42) |
| (3.60) |
|
| Net
increase (decrease) in net asset value |
1.63 |
| (5.07) |
| 4.91 |
| 0.05 |
| (0.09) |
|
| 1.64 |
| (5.06) |
| 4.94 |
| 0.01 |
| (0.09) |
|
| 1.62 |
| (5.14) |
| 4.97 |
| 0.06 |
| (0.01) |
|
| Net
Asset Value at end of period |
$25.28 |
$23.65 |
$28.72 |
$23.81 |
$23.76 |
| $25.36 |
$23.72 |
$28.78 |
$23.84 |
$23.83 |
| $25.57 |
$23.95 |
$29.09 |
$24.12 |
$24.06 |
|
Total
Return (%)2 |
13.75 |
| (11.33) |
| 32.37 |
| 5.75 |
| 18.37 |
|
| 14.03 |
| (11.13) |
| 32.72 |
| 6.06 |
| 18.63 |
|
| 14.23 |
| (10.96) |
| 32.96 |
| 6.21 |
| 18.88 |
|
| Ratios/Supplemental
Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Net
Assets at end of period (in 000’s) |
$93,711 |
$88,286 |
$108,515 |
$88,934 |
$86,476 |
| $97,446 |
$89,391 |
$112,166 |
$157,991 |
$244,443 |
| $61,787 |
$50,843 |
$84,331 |
$70,490 |
$8,063 |
| Ratios
of expenses to average net assets (%) |
1.16 |
| 1.16 |
| 1.16 |
| 1.18 |
| 1.20 |
|
| 0.91 |
| 0.91 |
| 0.91 |
| 0.94 |
| 0.95 |
|
| 0.73 |
| 0.73 |
| 0.73 |
| 0.74 |
| 0.77 |
|
| Ratio
of net investment income to average net assets (%) |
(0.03) |
| (0.05) |
| (0.03) |
| 0.18 |
| 0.23 |
|
| 0.22 |
| 0.21 |
| 0.25 |
| 0.54 |
| 0.47 |
|
| 0.40 |
| 0.41 |
| 0.39 |
| 0.26 |
| 0.65 |
|
|
Portfolio
turnover (%)3 |
22 |
| 18 |
| 17 |
| 41 |
| 23 |
|
| 22 |
| 18 |
| 17 |
| 41 |
| 23 |
|
| 22 |
| 18 |
| 17 |
| 41 |
| 23 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
Net
investment income (loss) calculated excluding permanent tax adjustments to
undistributed net investment income. |
|
|
2
Total
return without applicable sales charge. |
|
|
3
Portfolio
turnover is calculated at the fund level and represents the entire fiscal
year or period. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| INVESTORS
FUND |
| |
|
| CLASS
I |
| |
|
|
|
|
|
|
|
| Period
Ended |
| |
|
|
Year
Ended October 31, |
| October
31, |
| |
|
| 2023 |
| 2022 |
| 2021 |
|
20201 |
| |
| Net
Asset Value at beginning of period |
$23.67 |
| $28.75 |
| $23.84 |
| $24.51 |
| |
| Income
from Investment Operations: |
|
|
|
|
|
|
|
| |
| Net
investment income (loss) |
0.10 |
| 0.07 |
| 0.10 |
|
0.002,3 |
| |
| Net
realized and unrealized gain on investments |
3.07 |
| (2.91) |
| 7.28 |
| (0.67) |
| |
| Total
from investment operations |
3.17 |
| (2.84) |
| 7.38 |
| (0.67) |
| |
| Less
Distributions From: |
|
|
|
|
|
|
|
| |
| Net
investment income |
(0.11) |
| (0.10) |
| (0.10) |
| — |
| |
| Capital
gains |
(1.45) |
| (2.14) |
| (2.37) |
| — |
| |
| Total
distributions |
(1.56) |
| (2.24) |
| (2.47) |
| — |
| |
| Net
increase (decrease) in net asset value |
1.61 |
| (5.08) |
| 4.91 |
| (0.67) |
| |
| Net
Asset Value at end of period |
$25.28 |
| $23.67 |
| $28.75 |
| $23.84 |
| |
|
Total
Return (%)4 |
14.17 |
| (11.03) |
| 32.87 |
|
(2.73)5 |
| |
| Ratios/Supplemental
Data: |
|
|
|
|
|
|
|
| |
| Net
Assets at end of period (in 000’s) |
$80,308 |
| $71,885 |
| $104,617 |
| $20,643 |
| |
| Ratios
of expenses to average net assets: |
0.81 |
| 0.81 |
| 0.81 |
|
0.826 |
| |
| Ratio
of net investment income to average net assets (%) |
0.31 |
| 0.31 |
| 0.30 |
|
0.026 |
| |
|
Portfolio
turnover (%)7 |
22 |
| 18 |
| 17 |
|
415 |
| |
|
|
|
|
|
|
|
|
|
| |
|
1
Class
I shares commenced operations effective September 1,
2020. |
|
2
Amounts
represent less than $0.005 per share. |
|
3
Net
investment income (loss) calculated excluding permanent tax adjustments to
undistributed net investment income. |
|
4
Total
return without applicable sales charge. |
|
5
Not annualized. |
|
6
Annualized. |
|
7
Portfolio
turnover is calculated at the fund level and represents the entire fiscal
year or period. |
|
|
| |
|
Madison
Funds | October 31, 2023 |
|
Financial
Highlights for a Share of Beneficial Interest
Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| SUSTAINABLE
EQUITY FUND |
| |
|
| CLASS
Y |
| CLASS
I |
| |
|
|
Year
Ended |
| Period
Ended |
|
Year
Ended |
| Period
Ended |
| |
|
| October
31, |
| October
31, |
| October
31, |
| October
31, |
| |
|
|
2023 |
|
20221 |
|
2023 |
|
20221 |
| |
| Net
Asset Value at beginning of period |
$8.21 |
| $10.00 |
| $8.22 |
| $10.00 |
| |
| Income
from Investment Operations: |
|
|
|
|
|
|
|
| |
| Net
investment income (loss) |
0.07 |
| 0.03 |
| 0.09 |
| 0.03 |
| |
| Net
realized and unrealized gain on investments |
0.07 |
|
| (1.82) |
|
| 0.33 |
|
| (1.81) |
|
| |
| Total
from investment operations |
0.41 |
|
| (1.79) |
|
| 0.42 |
|
| (1.78) |
|
| |
| Less
Distributions From: |
|
|
|
|
|
|
|
| |
| Net
investment income |
(0.04) |
|
| — |
|
| (0.05) |
|
| — |
|
| |
|
Total
Distributions |
(0.04) |
|
| — |
|
| (0.05) |
|
| — |
|
| |
| Net
increase (decrease) in net asset value |
0.37 |
|
| (1.79) |
|
| 0.37 |
|
| (1.78) |
|
| |
| Net
Asset Value at end of period |
$8.58 |
| $8.21 |
| $8.59 |
| $8.22 |
| |
|
Total
Return (%)2 |
5.00 |
|
(17.90)3 |
| 5.10 |
|
(17.80)3 |
| |
| Ratios/Supplemental
Data: |
|
|
|
|
|
|
|
| |
| Net
Assets at end of period (in 000’s) |
$101 |
| $82 |
| $7,958 |
| $9,198 |
| |
| Ratios
of expenses to average net assets: |
0.91 |
|
0.894 |
| 0.81 |
|
0.814 |
| |
| Ratio
of net investment income to average net assets (%) |
0.82 |
|
0.464 |
| 0.93 |
|
0.604 |
| |
|
Portfolio
turnover (%)5 |
34 |
|
123 |
| 34 |
|
123 |
| |
|
|
|
|
|
|
|
|
|
| |
|
1
The
Sustainable Equity Fund was launched on December 31, 2021 and commenced
operations effective January 3, 2022. |
|
2
Total
return without applicable sales charge. |
|
3
Not annualized. |
|
4
Annualized. |
|
5
Portfolio
turnover is calculated at the fund level and represents the entire fiscal
year or period. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| MID
CAP FUND |
|
| CLASS
A |
|
| Year
Ended October 31, |
|
|
2023 |
2022 |
2021 |
2020 |
2019 |
| Net
Asset Value at beginning of period |
$11.68 |
$13.68 |
$10.26 |
$11.09 |
$9.77 |
| Income
from Investment Operations: |
|
|
|
| |
| Net
investment loss |
(0.04) |
| (0.09) |
| (0.07) |
|
(0.08)1 |
(0.07)1 |
| Net
realized and unrealized gain (loss) on investments |
1.27 |
| (1.27) |
| 3.91 |
| (0.32) |
| 2.07 |
|
| Total
from investment operations |
1.23 |
| (1.36) |
| 3.84 |
| (0.40) |
| 2.00 |
|
| Less
Distributions From: |
|
|
|
| |
| Capital
gains |
(0.25) |
| (0.64) |
| (0.42) |
| (0.43) |
| (0.68) |
|
| Total
distributions |
(0.25) |
| (0.64) |
| (0.42) |
| (0.43) |
| (0.68) |
|
| Net
increase (decrease) in net asset value |
0.98 |
| (2.00) |
| 3.42 |
| (0.83) |
| 1.32 |
|
| Net
Asset Value at end of period |
$12.66 |
$11.68 |
$13.68 |
$10.26 |
$11.09 |
|
Total
Return (%)2 |
10.68 |
| (10.62) |
| 38.24 |
| (3.81) |
| 22.65 |
|
| Ratios/Supplemental
Data: |
|
|
|
| |
| Net
Assets at end of period (in 000’s) |
$66,717 |
$63,417 |
$76,625 |
$58,782 |
$66,250 |
| Ratios
of expenses to average net assets (%) |
1.39 |
| 1.40 |
| 1.39 |
| 1.40 |
| 1.40 |
|
| Ratio
of net investment income to average net assets (%) |
(0.25) |
| (0.59) |
| (0.50) |
| (0.64) |
| (0.59) |
|
|
Portfolio
turnover (%)3 |
10 |
| 24 |
| 24 |
| 24 |
| 25 |
|
|
|
| |
|
1
Net
investment income (loss) calculated excluding permanent tax adjustments to
undistributed net investment income. |
|
2
Total
return without applicable sales charge. |
|
3
Portfolio
turnover is calculated at the fund level and represents the entire fiscal
year. |
|
|
| |
|
Madison
Funds | October 31, 2023 |
|
Financial
Highlights for a Share of Beneficial Interest
Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| MID
CAP FUND |
|
| CLASS
Y |
|
| Year
Ended October 31, |
|
| 2023 |
2022 |
2021 |
2020 |
2019 |
| Net
Asset Value at beginning of period |
$12.58 |
$14.62 |
$10.89 |
$11.71 |
$10.23 |
| Income
from Investment Operations: |
|
|
|
| |
| Net
investment loss |
0.03 |
| (0.03) |
| 0.02 |
(0.03)1 |
(0.02)1 |
| Net
realized and unrealized gain (loss) on investments |
1.36 |
| (1.37) |
| 4.13 |
| (0.36) |
| 2.18 |
|
| Total
from investment operations |
1.39 |
| (1.40) |
| 4.15 |
| (0.39) |
| 2.16 |
|
| Less
Distributions From: |
|
|
|
| |
| Net
Investment Income |
– |
(0.00)2 |
— |
|
(0.00)2 |
— |
|
| Capital
gains |
(0.25) |
| (0.64) |
| (0.42) |
| (0.43) |
| (0.68) |
|
| Total
distributions |
(0.25) |
| (0.64) |
| (0.42) |
| (0.43) |
| (0.68) |
|
| Net
increase (decrease) in net asset value |
1.14 |
| (2.04) |
| 3.73 |
| (0.82) |
| 1.48 |
|
| Net
Asset Value at end of period |
$13.72 |
$12.58 |
$14.62 |
$10.89 |
$11.71 |
|
Total
Return (%)3 |
11.20 |
| (10.17) |
| 38.89 |
| (3.52) |
| 23.27 |
|
| Ratios/Supplemental
Data: |
|
|
|
| |
| Net
Assets at end of period (in 000’s) |
$260,474 |
$253,477 |
$263,892 |
$323,841 |
$463,768 |
| Ratios
of expenses to average net assets (%) |
0.94 |
| 0.95 |
| 0.95 |
| 0.97 |
| 0.98 |
|
| Ratio
of net investment income (loss) to average net assets (%) |
0.20 |
| (0.14) |
| (0.04) |
| (0.20) |
| (0.18) |
|
|
Portfolio
turnover (%)4 |
10 |
| 24 |
| 24 |
| 24 |
| 25 |
|
|
|
| |
|
1
Net
investment income (loss) calculated excluding permanent tax adjustments to
undistributed net investment income. |
|
2
Amounts
represent less than $(0.005) per share. |
|
3
Total
return without applicable sales charge. |
|
4
Portfolio
turnover is calculated at the fund level and represents the entire fiscal
year or period. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| MID
CAP FUND |
|
| CLASS
I |
|
|
|
|
|
|
|
| Period
Ended |
|
|
Year
Ended October 31, |
| October
31, |
|
|
2023 |
| 2022 |
| 2021 |
|
20201 |
| Net
Asset Value at beginning of period |
$12.60 |
| $14.64 |
| $10.90 |
| $11.21 |
| Income
from Investment Operations: |
|
|
|
|
|
| |
| Net
investment loss |
0.04 |
|
0.002 |
| (0.03) |
|
|
0.013 |
| Net
realized and unrealized gain (loss) on investments |
1.36 |
|
| (1.38) |
|
| 4.19 |
|
| (0.30) |
|
| Total
from investment operations |
1.40 |
|
| (1.38) |
|
| 4.16 |
|
| (0.31) |
|
| Less
Distributions From: |
|
|
|
|
|
| |
| Net
Investment Income |
— |
|
| (0.02) |
|
|
(0.00)2 |
| — |
|
| Capital
gains |
(0.25) |
|
| (0.64) |
|
| (0.42) |
|
| — |
|
| Total
distributions |
(0.25) |
|
| (0.66) |
|
| (0.42) |
|
| — |
|
| Net
increase (decrease) in net asset value |
1.15 |
|
| (2.04) |
|
| 3.74 |
|
| (0.31) |
|
| Net
Asset Value at end of period |
$13.75 |
| $12.60 |
| $14.64 |
| $10.90 |
|
Total
Return (%)4 |
11.26 |
|
| (10.08) |
|
| 39.01 |
|
|
(2.77)5 |
| Ratios/Supplemental
Data: |
|
|
|
|
|
| |
| Net
Assets at end of period (in 000’s) |
$376,668 |
| $274,918 |
| $286,235 |
| $61,805 |
| Ratios
of expenses to average net assets (%) |
0.84 |
| 0.85 |
| 0.85 |
|
0.866 |
| Ratio
of net investment income (loss) to average net assets (%) |
0.28 |
|
| (0.04) |
|
| (0.01) |
|
|
(0.43)6 |
|
Portfolio
turnover (%)7 |
10 |
| 24 |
| 24 |
|
245 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
Class
I shares commenced operations effective September 1,
2020. |
|
2
Amounts
represent less than $(0.005) per share. |
|
3
Net
investment income (loss) calculated excluding permanent tax adjustments to
undistributed net investment income. |
|
4
Total
return without applicable sales charge. |
|
5
Not annualized. |
|
6
Annualized. |
|
7
Portfolio
turnover is calculated at the fund level and represents the entire fiscal
year or period. |
|
|
| |
|
Madison
Funds | October 31, 2023 |
|
Financial
Highlights for a Share of Beneficial Interest
Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| MID
CAP FUND |
|
| CLASS
R6 |
|
| Year
Ended October 31, |
|
|
2023 |
2022 |
2021 |
2020 |
2019 |
| Net
Asset Value at beginning of period |
$12.94 |
$15.04 |
$11.19 |
$11.99 |
$10.44 |
| Income
from Investment Operations: |
|
|
|
| |
| Net
investment Income (loss) |
0.04 |
0.01 |
0.02 |
(0.02)1 |
(0.10)1 |
| Net
realized and unrealized gain (loss) on investments |
1.42 |
| (1.43) |
| 4.27 |
| (0.35) |
| 2.33 |
|
| Total
from investment operations |
1.46 |
| (1.42) |
| 4.29 |
| (0.37) |
| 2.23 |
|
| Less
Distributions From: |
|
|
|
| |
| Net
Investment Income |
— |
| (0.04) |
| (0.02) |
|
(0.00)2 |
— |
|
| Capital
gains |
(0.25) |
| (0.64) |
| (0.42) |
| (0.43) |
| (0.68) |
|
| Total
distributions |
(0.25) |
| (0.68) |
| (0.44) |
| (0.43) |
| (0.68) |
|
| Net
increase (decrease) in net asset value |
1.21 |
| (2.10) |
| 3.85 |
| (0.80) |
| 1.55 |
|
| Net
Asset Value at end of period |
$14.15 |
$12.94 |
$15.04 |
$11.19 |
$11.99 |
|
Total
Return (%)3 |
11.43 |
| (10.07) |
| 39.20 |
| (3.26) |
| 23.49 |
|
| Ratios/Supplemental
Data: |
|
|
|
| |
| Net
Assets at end of period (in 000’s) |
$114,320 |
$88,723 |
$105,878 |
$91,562 |
$55,417 |
| Ratios
of expenses to average net assets (%) |
0.76 |
| 0.77 |
| 0.77 |
| 0.77 |
| 0.76 |
|
| Ratio
of net investment income to average net assets (%) |
0.37 |
| 0.05 |
| 0.14 |
| (0.03) |
| (0.06) |
|
|
Portfolio
turnover (%)4 |
10 |
| 24 |
| 24 |
| 24 |
| 25 |
|
|
|
| |
|
1
Net
investment income (loss) calculated excluding permanent tax adjustments to
undistributed net investment income. |
|
2
Amounts
represent less than $0.005 per share. |
|
3
Total
return without applicable sales charge. |
|
4
Portfolio
turnover is calculated at the fund level and represents the entire fiscal
year or period. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| SMALL
CAP FUND |
|
| CLASS
A |
|
|
|
|
| Period
Ended |
| Inception
to |
|
| Year
Ended October 31, |
| October
31, |
| September
30, |
|
|
2023 |
2022 |
2021 |
2020 |
|
20192 |
|
20191 |
| Net
Asset Value at beginning of period |
$9.22 |
$15.55 |
$11.04 |
$11.14 |
| $10.82 |
| $10.53 |
| Income
from Investment Operations: |
|
|
|
|
|
|
| |
| Net
investment income (loss) |
(0.04) |
| (0.05) |
| (0.09) |
|
(0.02)3 |
|
(0.01)3 |
|
(0.01)3 |
| Net
realized and unrealized gain (loss) on investments |
(0.14) |
| (2.81) |
| 5.46 |
| 0.36 |
|
| 0.33 |
|
| 0.30 |
|
| Total
from investment operations |
(0.18) |
| (2.86) |
| 5.37 |
| 0.34 |
|
| 0.32 |
|
| 0.29 |
|
| Less
Distributions From: |
|
|
|
|
|
|
| |
| Capital
gains |
(0.48) |
| (3.47) |
| (0.86) |
| (0.44) |
|
| — |
|
| — |
|
| Total
distributions |
(0.48) |
| (3.47) |
| (0.86) |
| (0.44) |
|
| — |
|
| — |
|
| Net
increase (decrease) in net asset value |
(0.66) |
| (6.33) |
| 4.51 |
| (0.10) |
|
| 0.32 |
|
| 0.29 |
|
| Net
Asset Value at end of period |
$8.56 |
$9.22 |
$15.55 |
$11.04 |
| $11.14 |
| $10.82 |
|
Total
Return (%)4 |
(1.94) |
| (23.74) |
| 50.17 |
3.02 |
|
2.965 |
|
2.755 |
| Ratios/Supplemental
Data: |
|
|
|
|
|
|
| |
| Net
Assets at end of period (in 000’s) |
$3,275 |
$3,417 |
$4,847 |
$2,958 |
| $3,457 |
| $3,420 |
| Ratios
of expenses to average net assets: |
|
|
|
|
|
|
| |
| Before
reimbursement of expenses by Adviser (%) |
1.35 |
1.35 |
1.39 |
1.51 |
|
1.506 |
|
1.506 |
| After
reimbursement of expenses by Adviser (%) |
1.35 |
1.35 |
1.38 |
1.47 |
|
1.466 |
|
1.466 |
| Ratios
of net investment income to average net assets: |
|
|
|
|
|
|
| |
| Before
reimbursement of expenses by Adviser (%) |
(0.42) |
(0.52) |
(0.67) |
(0.18) |
|
(1.07)6 |
|
(1.28)6 |
| After
reimbursement of expenses by Adviser (%) |
(0.42) |
(0.52) |
(0.66) |
(0.14) |
|
(1.03)6 |
|
(1.24)6 |
|
Portfolio
turnover (%)7 |
39 |
| 41 |
| 44 |
| 47 |
|
| 3 |
|
|
73
5 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
For
accounting purposes, the Small Cap Fund Class A is treated as having
commenced investment operations on August 31, 2019. |
|
2
Disclosure represents the period October 1, 2019 to October 31,
2019. |
|
3
Net
investment income (loss) calculated excluding permanent tax adjustments to
undistributed net investment income. |
|
4
Total
return without applicable sales charge. |
|
5
Not
annualized. |
|
6
Annualized. |
|
7
Portfolio
turnover is calculated at the fund level and is not annualized for periods
less than one year. |
|
|
| |
|
Madison
Funds | October 31, 2023 |
|
Financial
Highlights for a Share of Beneficial Interest
Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| SMALL
CAP FUND |
|
| CLASS
Y |
|
|
|
|
|
|
| Period
Ended |
|
Year
Ended |
|
| Year
Ended October 31, |
| October
31, |
|
September
30, |
|
|
2023 |
2022 |
2021 |
2020 |
|
20191 |
| 2019 |
| Net
Asset Value at beginning of period |
$9.35 |
$15.69 |
$11.11 |
$11.19 |
| $10.87 |
| $15.56 |
| Income
from Investment Operations: |
|
|
|
|
|
|
| |
| Net
investment income (loss) |
(0.02) |
| (0.03) |
| (0.07) |
|
0.022 |
|
(0.01)2 |
|
(0.04)2 |
| Net
realized and unrealized gain (loss) on investments |
(0.14) |
| (2.84) |
| 5.51 |
| 0.35 |
|
| 0.33 |
|
| (1.39) |
|
| Total
from investment operations |
(0.16) |
| (2.87) |
| 5.44 |
| 0.37 |
|
| 0.32 |
|
| (1.43) |
|
| Less
Distributions From: |
|
|
|
|
|
|
| |
| Net
investment income |
— |
|
(0.00)3 |
— |
| (0.01) |
|
| — |
|
| — |
|
| Capital
gains |
(0.48) |
| (3.47) |
| (0.86) |
| (0.44) |
|
| — |
|
| (3.26) |
|
| Total
distributions |
(0.48) |
| (3.47) |
| (0.86) |
| (0.45) |
|
| — |
|
| (3.26) |
|
| Net
increase (decrease) in net asset value |
(0.64) |
| (6.34) |
| 4.58 |
| (0.08) |
|
| 0.32 |
|
| (4.69) |
|
| Net
Asset Value at end of period |
$8.71 |
$9.35 |
$15.69 |
$11.11 |
| $11.19 |
| $10.87 |
|
Total
Return (%)4 |
(1.69) |
| (23.55) |
| 50.50 |
| 3.27 |
|
|
2.945 |
| (8.81) |
|
| Ratios/Supplemental
Data: |
|
|
|
|
|
|
| |
| Net
Assets at end of period (in 000’s) |
$143,591 |
$166,238 |
$253,625 |
$215,890 |
| $263,527 |
| $274,824 |
| Ratios
of expenses to average net assets: |
|
|
|
|
|
|
| |
|
Before
reimbursement of expenses by Adviser (%) |
1.10 |
1.10 |
1.15 |
1.26 |
|
1.256 |
| 1.29 |
| After
reimbursement of expenses by Adviser (%) |
1.10 |
1.10 |
1.14 |
1.22 |
|
1.216 |
| 1.29 |
| Ratios
of net investment income to average net assets: |
|
|
|
|
|
|
| |
|
Before
reimbursement of expenses by Adviser (%) |
(0.17) |
(0.27) |
(0.42) |
0.08 |
|
(0.82)6 |
| (0.36) |
|
| After
reimbursement of expenses by Adviser (%) |
(0.17) |
(0.27) |
(0.40) |
0.12 |
|
(0.78)6 |
| (0.36) |
|
|
Portfolio
turnover (%)7 |
39 |
| 41 |
| 44 |
| 47 |
|
| 3
5 |
| 73 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
Disclosure
represents the period October 1, 2019 to October 31,
2019. |
|
2
Net
investment income (loss) calculated excluding permanent tax adjustments to
undistributed net investment income. |
|
3
Amounts
represent less than $(0.005) per share. |
|
4
Total
return without applicable sales charge. |
|
5
Not
annualized. |
|
6
Annualized. |
|
7
Portfolio
turnover is calculated at the fund level and is not annualized for periods
less than one year. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| SMALL
CAP FUND |
|
| CLASS
I |
|
|
|
|
|
| Period
Ended |
|
|
Year
Ended October 31, |
| October
31, |
|
|
2023 |
| 2022 |
|
20211 |
| Net
Asset Value at beginning of period |
$9.36 |
| $15.70 |
| $14.41 |
| Income
from Investment Operations: |
|
|
|
| |
| Net
investment income (loss) |
(0.01) |
|
| (0.02) |
|
| (0.03) |
|
| Net
realized and unrealized gain (loss) on investments |
(0.15) |
|
| (2.83) |
|
| 1.32 |
|
| Total
from investment operations |
(0.16) |
|
| (2.85) |
|
| 1.29 |
|
| Less
Distributions From: |
|
|
|
| |
| Net
investment income |
— |
|
| (0.02) |
|
| — |
|
| Capital
gains |
(0.48) |
|
| (3.47) |
|
| — |
|
| Total
distributions |
(0.48) |
|
| (3.49) |
|
| — |
|
| Net
increase (decrease) in net asset value |
(0.64) |
|
| (6.34) |
|
| 1.29 |
|
| Net
Asset Value at end of period |
$8.72 |
| $9.36 |
| $15.70 |
|
Total
Return (%)2 |
(1.58) |
|
| (23.52) |
|
|
8.953 |
| Ratios/Supplemental
Data: |
|
|
|
| |
| Net
Assets at end of period (in 000’s) |
$11,925 |
| $13,863 |
| $21,868 |
| Ratios
of expenses to average net assets: |
|
|
|
| |
|
Before
reimbursement of expenses by Adviser (%) |
1.00 |
| 1.00 |
|
1.004 |
| After
reimbursement of expenses by Adviser (%) |
1.00 |
| 1.00 |
|
1.004 |
| Ratios
of net investment income to average net assets: |
|
|
|
| |
|
Before
reimbursement of expenses by Adviser (%) |
(0.07) |
|
| (0.16) |
|
|
(0.36)4 |
| After
reimbursement of expenses by Adviser (%) |
(0.07) |
|
| (0.16) |
|
|
(0.36)4 |
| Portfolio
turnover (%) |
39 |
| 41 |
|
443 |
|
|
| |
|
1
Class
I shares commenced operations effective March 1, 2021. |
|
2
Total
return without applicable sales charge. |
|
3
Not annualized. |
|
4
Annualized. |
|
|
| |
|
Madison
Funds | October 31, 2023 |
|
Financial
Highlights for a Share of Beneficial Interest
Outstanding |
|
|
|
|
|
|
|
|
|
|
|
| |
|
| SMALL
CAP FUND |
|
| CLASS
R6 |
|
|
Year
Ended |
| Period
Ended |
|
| October
31, |
| October
31, |
|
|
2023 |
|
20221 |
| Net
Asset Value at beginning of period |
$9.36 |
| $11.30 |
| Income
from Investment Operations: |
|
| |
| Net
investment loss |
— |
|
(0.00)2 |
| Net
realized and unrealized gain on investments |
(0.14) |
| (1.94) |
| Total
from investment operations |
(0.14) |
| (1.94) |
|
Less
Distributions From: |
|
| |
|
Capital
gains |
(0.48) |
| — |
|
Total
distributions |
(0.48) |
| — |
| Net
increase (decrease) in net asset value |
(0.62) |
| (1.94) |
| Net
Asset Value at end of period |
$8.74 |
| $9.36 |
|
Total
Return (%)3 |
(1.46) |
|
(17.17)4 |
| Ratios/Supplemental
Data: |
|
| |
| Net
Assets at end of period (in 000’s) |
$220 |
| $161 |
| Ratios
of expenses to average net assets: |
|
| |
|
Before
reimbursement of expenses by Adviser (%) |
0.92 |
|
0.925 |
| After
reimbursement of expenses by Adviser (%) |
0.92 |
|
0.925 |
| Ratios
of net investment income to average net assets: |
|
| |
|
Before
reimbursement of expenses by Adviser (%) |
(0.01) |
|
(0.06)5 |
| After
reimbursement of expenses by Adviser (%) |
(0.01) |
|
(0.06)5 |
|
Portfolio
turnover (%)6 |
39 |
|
414 |
|
|
| |
|
1
Class
R6 shares commenced operations effective March 1, 2022. |
|
2
Amounts
represent less than $ (0.005) per share. |
|
3
Total
return without applicable sales charge. |
|
4
Not Annualized. |
|
5
Annualized. |
|
6
Portfolio
turnover is calculated at the fund level and represents the entire fiscal
year or period. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
| INTERNATIONAL
STOCK FUND |
|
| CLASS
A |
| CLASS
Y |
|
| Year
Ended October 31, |
| Year
Ended October 31, |
|
| 2023 |
2022 |
2021 |
2020 |
2019 |
| 2023 |
2022 |
2021 |
2020 |
2019 |
| Net
Asset Value at beginning of period |
$7.34 |
$13.67 |
$11.83 |
$13.53 |
$12.92 |
| $7.28 |
$13.64 |
$11.83 |
$13.57 |
$12.96 |
| Income
from Investment Operations: |
|
|
|
|
|
|
|
|
|
| |
| Net
investment income (loss) |
0.01 |
0.08 |
0.07 |
0.061 |
0.181 |
| 0.41 |
| (1.21) |
| 0.41 |
1.301 |
0.621 |
| Net
realized and unrealized gain (loss) on investments |
0.60 |
| (2.78) |
| 2.35 |
| (0.89) |
| 0.99 |
|
| 0.22 |
| (1.46) |
| 2.05 |
| (2.10) |
| 0.58 |
|
| Total
from investment operations |
0.61 |
| (2.70) |
| 2.42 |
| (0.83) |
| 1.17 |
|
| 0.63 |
| (2.67) |
| 2.46 |
| (0.80) |
| 1.20 |
|
| Less
Distributions From: |
|
|
|
|
|
|
|
|
|
| |
| Net
investment income |
(0.02) |
| (0.07) |
| (0.06) |
| (0.19) |
| (0.19) |
|
| (0.04) |
| (0.13) |
| (0.13) |
| (0.26) |
| (0.22) |
|
| Capital
gains |
— |
| (3.56) |
| (0.52) |
| (0.68) |
| (0.37) |
|
| — |
| (3.56) |
| (0.52) |
| (0.68) |
| (0.37) |
|
| Total
distributions |
(0.02) |
| (3.63) |
| (0.58) |
| (0.87) |
| (0.56) |
|
| (0.04) |
| (3.69) |
| (0.65) |
| (0.94) |
| (0.59) |
|
| Net
increase (decrease) in net asset value |
0.59 |
| (6.33) |
| 1.84 |
| (1.70) |
| 0.61 |
|
| 0.59 |
| (6.36) |
| 1.81 |
| (1.74) |
| 0.61 |
|
| Net
Asset Value at end of period |
$7.93 |
$7.34 |
$13.67 |
$11.83 |
$13.53 |
| $7.87 |
$7.28 |
$13.64 |
$11.83 |
$13.57 |
|
Total
Return (%)2 |
8.34 |
| (26.52) |
| 20.48 |
| (6.78) |
| 9.85 |
|
| 8.68 |
| (26.39) |
| 20.83 |
| (6.58) |
| 10.10 |
|
| Ratios/Supplemental
Data: |
|
|
|
|
|
|
|
|
|
| |
| Net
Assets at end of period (in 000’s) |
$11,104 |
$10,896 |
$16,375 |
$14,602 |
$17,209 |
| $645 |
$666 |
$888 |
$823 |
$1,310 |
| Ratios
of expenses to average net assets (%) |
1.61 |
| 1.61 |
| 1.61 |
| 1.60 |
| 1.60 |
|
| 1.36 |
| 1.36 |
| 1.36 |
| 1.36 |
| 1.35 |
|
| Ratio
of net investment income to average net assets (%) |
0.31 |
| 0.30 |
| 0.53 |
| 0.50 |
| 1.42 |
|
| 0.57 |
| 0.55 |
| 0.79 |
| 0.73 |
| 1.67 |
|
|
Portfolio
turnover (%)3 |
22 |
| 31 |
| 120 |
| 34 |
| 37 |
|
| 22 |
| 31 |
| 120 |
| 34 |
| 37 |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
Net
investment income (loss) calculated excluding permanent tax adjustments to
undistributed net investment income. |
|
2
Total
return without applicable sales charge. |
|
3
Portfolio
turnover is calculated at the fund level and represents the entire fiscal
year or period. |
APPENDIX
Sales
Charge Waivers
The
availability of certain sales charge waivers and discounts will depend on
whether you purchase your shares directly from the Funds or through a financial
intermediary. Financial intermediaries may have different policies and
procedures regarding the availability of front-end sales load waivers or
contingent deferred (back-end) sales load (“CDSC”) waivers, which are discussed
below. In all instances, it is the purchaser’s responsibility to notify the fund
or the purchaser’s financial intermediary at the time of purchase of any
relationship or other facts qualifying the purchaser for sales charge waivers or
discounts. Please contact the applicable financial intermediary with any
questions regarding how the financial intermediary applies the policies
described below and to ensure that you understand what steps you must take to
qualify for any available waivers or discounts. For waivers and discounts not
available through a particular financial intermediary, shareholders will have to
purchase fund shares directly from the Funds or through another financial
intermediary to receive these waivers or discounts. If you change financial
intermediaries after you purchase fund shares, the policies and procedures of
the new service provider (either your new financial intermediary or the Fund’s
transfer agent) will apply to your account. Those policies may be more or less
favorable than those offered by the financial intermediary through which you
purchased your fund shares. You should review any policy differences before
changing financial intermediaries.
This
Appendix details the availability and/or variations in sales load waivers or
discounts based on information provided by the financial intermediary. These
waivers or discounts, which may differ from and may be more or less limited than
those disclosed elsewhere in the Funds’ prospectus or SAI, are subject to
change.
Edward
D. Jones & Co., L.P. ("Edward Jones")
Effective
on or after January 1st
2024, the following information supersedes prior information with respect to
transactions and positions held in fund shares through an Edward Jones system.
Clients of Edward Jones (also referred to as "shareholders") purchasing fund
shares on the Edward Jones commission and fee-based platforms are eligible only
for the following sales charge discounts (also referred to as "breakpoints") and
waivers, which can differ from discounts and waivers described elsewhere in the
mutual fund prospectus or statement of additional information ("SAI") or through
another broker-dealer. In all instances, it is the shareholder's responsibility
to inform Edward Jones at the time of purchase of any relationship, holdings of
the Funds, or other facts qualifying the purchaser for discounts or waivers.
Edward Jones can ask for documentation of such circumstance. Shareholders should
contact Edward Jones if they have questions regarding their eligibility for
these discounts and waivers.
Breakpoints
•Breakpoint
pricing, otherwise known as volume pricing, at dollar thresholds as described in
the prospectus.
Rights
of Accumulation ("ROA")
•The
applicable sales charge on a purchase of Class A shares is determined by taking
into account all share classes (except certain money market funds and any assets
held in group retirement plans) of the Funds held by the shareholder or in an
account grouped by Edward Jones with other accounts for the purpose of providing
certain pricing considerations ("pricing groups"). If grouping assets as a
shareholder, this includes all share classes held on the Edward Jones platform
and/or held on another platform. The inclusion of eligible fund family assets in
the ROA calculation is dependent on the shareholder notifying Edward Jones of
such assets at the time of calculation. Money market funds are included only if
such shares were sold with a sales charge at the time of purchase or acquired in
exchange for shares purchased with a sales charge.
•The
employer maintaining a SEP IRA plan and/or SIMPLE IRA plan may elect to
establish or change ROA for the IRA accounts associated with the plan to a
plan-level grouping as opposed to including all share classes at a shareholder
or pricing group level.
•ROA
is determined by calculating the higher of cost minus redemptions or market
value (current shares x NAV).
Letter
of Intent ("LOI")
•Through
a LOI, shareholders can receive the sales charge and breakpoint discounts for
purchases shareholders intend to make over a 13-month period from the date
Edward Jones receives the LOI. The LOI is determined by calculating the higher
of cost or market value of qualifying holdings at LOI initiation in combination
with the value that the shareholder intends to buy over a 13-month period to
calculate the front-end sales charge and any breakpoint discounts. Each purchase
the shareholder makes during that 13-month period will receive the sales charge
and breakpoint discount that applies to the total amount. The inclusion of
eligible fund family assets in the LOI calculation is dependent on the
shareholder notifying Edward Jones of such assets at the time of calculation.
Purchases made before the LOI is received by Edward Jones are not adjusted under
the LOI and will not reduce the sales charge previously paid. Sales charges will
be adjusted if LOI is not met.
•If
the employer maintaining a SEP IRA plan and/or SIMPLE IRA plan has elected to
establish or change ROA for the IRA accounts associated with the plan to a
plan-level grouping, LOIs will also be at the plan-level and may only be
established by the employer.
Sales
Charge Waivers
Sales
charges are waived for the following shareholders and in the following
situations:
•Associates
of Edward Jones and its affiliates and other accounts in the same pricing group
(as determined by Edward Jones under its policies and procedures) as the
associate. This waiver will continue for the remainder of the associate's life
if the associate retires from Edward Jones in good-standing and remains in good
standing pursuant to Edward Jones' policies and procedures.
•Shares
purchased in an Edward Jones fee-based program.
•Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment. Shares purchased from the proceeds of redeemed shares of the same
fund family so long as the following conditions are met: the proceeds are from
the sale of shares within 60 days of the purchase, the sale and purchase are
made from a share class that charges a front load and one of the following:
•The
redemption and repurchase occur in the same account.
•The
redemption proceeds are used to process an: IRA contribution, excess
contributions, conversion, recharacterizing of contributions, or distribution,
and the repurchase is done in an account within the same Edward Jones grouping
for ROA.
•Shares
exchanged into Class A shares from another share class so long as the exchange
is into the same fund and was initiated at the discretion of Edward Jones.
Edward Jones is responsible for any remaining CDSC due to the fund company, if
applicable. Any future purchases are subject to the applicable sales charge as
disclosed in the prospectus.
•Exchanges
from Class C shares to Class A shares of the same fund, generally, in the
84th
month following the anniversary of the purchase date or earlier at the
discretion of Edward Jones.
•Purchases
of Class 529-A shares through a rollover from either another education savings
plan or a security used for qualified distributions.
•Purchases
of Class 529-A shares made for recontribution of refunded amounts.
Contingent
Deferred Sales Charge ("CDSC") Waivers
If
the shareholder purchases shares that are subject to a CDSC and those shares are
redeemed before the CDSC is expired, the shareholder is responsible to pay the
CDSC except in the following conditions:
•The
death or disability of the shareholder.
•Systematic
withdrawals with up to 10% per year of the account value.
•Return
of excess contributions from an Individual Retirement Account
(IRA).
•Shares
redeemed as part of a required minimum distribution for IRA and retirement
accounts if the redemption is taken in or after the year the shareholder reaches
qualified age based on applicable IRS regulations.
•Shares
redeemed to pay Edward Jones fees or costs in such cases where the transaction
is initiated by Edward Jones.
•Shares
exchanged in an Edward Jones fee-based program.
•Shares
acquired through NAV reinstatement.
•Shares
redeemed at the discretion of Edward Jones for Minimums Balances, as described
below.
Other
Important Information Regarding Transactions Through Edward Jones
Minimum
Purchase Amounts
•Initial
purchase minimum: $250
•Subsequent
purchase minimum: none
Minimum
Balances
•Edward
Jones has the right to redeem at its discretion fund holdings with a balance of
$250 or less. The following are examples of accounts that are not included in
this policy:
•A
fee-based account held on an Edward Jones platform
•A
529 account held on an Edward Jones platform
•An
account with an active systematic investment plan or LOI
Exchanging
Share Classes
•At
any time it deems necessary, Edward Jones has the authority to exchange at NAV a
shareholder's holdings in a fund to Class A shares of the same
fund.
Merrill
Lynch, Pierce, Fenner & Smith Incorporated ("Merrill Lynch")
Effective
April 10, 2017, shareholders purchasing fund shares through a Merrill Lynch
platform or account will be eligible only for the following load waivers
(front-end sales charge waivers and contingent deferred, or back-end, sales
charge waivers) and discounts, which may differ from those disclosed elsewhere
in the funds’ prospectus or SAI.
Front-end
sales load waivers on Class A shares available at Merrill Lynch
•Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health
savings accounts) and trusts used to fund those plans, provided that the shares
are not held in a commission-based brokerage account and shares are held for the
benefit of the plan.
•Shares
purchased by or through a 529 Plan.
•Shares
purchased through a Merrill Lynch affiliated investment advisory
program.
•Shares
purchased by third party investment advisors on behalf of their advisory clients
through Merrill Lynch’s platform.
•Shares
purchased through the Merrill Edge Self-Directed platform.
•Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same fund (but not any other fund
within the fund family).
•Shares
exchanged from Class C (i.e. level-load) shares of the same fund in the month of
or following the 10-year anniversary of the purchase date.
•Employees
and registered representatives of Merrill Lynch or its affiliates and their
family members.
•Trustees
of the Madison Funds, and employees of Madison Asset Management, LLC or any of
its affiliates, as described in the funds' prospectus.
•Shares
purchased from the proceeds of redemptions within the same fund family, provided
(1) the repurchase occurs within 90 days following the redemption, (2) the
redemption and purchase occur in the same account, and (3) redeemed shares were
subject to a front-end or deferred sales load (known as rights of
reinstatement).
CDSC
waivers on Class A shares and Class C shares available at Merrill
Lynch
•Death
or disability of the shareholder.
•Shares
sold as part of a systematic withdrawal plan as described in the funds'
prospectus.
•Return
of excess contributions from an IRA Account.
•Shares
sold as part of a required minimum distribution for IRA and retirement accounts
due to the shareholder reaching age 72.
•Shares
sold to pay Merrill Lynch fees but only if the transaction is initialed by
Merrill Lynch.
•Shares
acquired through a right of reinstatement.
•Shares
held in retirement brokerage accounts, that are exchanged for a lower cost share
class due to transfer to certain fee based accounts or platforms (applicable to
Class A shares and Class C shares only).
Front-end
sales load discounts available at Merrill Lynch: breakpoints, rights of
accumulation, and letters of intent
•Breakpoints
as described in the funds' prospectus.
•Rights
of Accumulation (ROA), which entitle shareholders to breakpoint discounts will
be automatically calculated based on the aggregated holding of fund family
assets held by accounts within the purchaser’s household at Merrill Lynch.
Eligible fund family assets not held at Merrill Lynch may be included in the ROA
calculation only if the shareholder notifies his or her financial advisor about
such assets.
•Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated
purchases within a fund family, through Merrill Lynch, over a 13-month period of
time (if applicable).
Morgan
Stanley Smith Barney
Effective
July 1, 2018, shareholders purchasing fund shares through a Morgan Stanley
Wealth Management transactional brokerage account which is not held directly at
the fund will be eligible only for the following front-end sales charge waivers
with respect to Class A shares, which may differ from and may be more limited
than those disclosed elsewhere in the funds' prospectus or SAI:
•Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b)
plans, profit sharing and money purchase pension plans and defined benefit
plans). For purposes of this provision, employer-sponsored retirement plans do
not include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans.
•Morgan
Stanley employee and employee-related accounts according to Morgan Stanley’s
account linking rules.
•Shares
purchased through reinvestment of dividends and capital gains distributions when
purchasing shares of the same fund.
•Shares
purchased through a Morgan Stanley self-directed brokerage account.
•Class
C (i.e., level-load) shares that are no longer subject to a contingent deferred
sales charge and are converted to Class A shares of the same fund pursuant to
Morgan Stanley Wealth Management’s share class conversion program.
•Shares
purchased from the proceeds of redemptions within the same fund family, provided
(i) the repurchase occurs within 90 days following the redemption, (ii) the
redemption and purchase occur in the same account, and (iii) redeemed shares
were subject to a front-end or deferred sales charge.
Raymond
James & Associates, Inc., Raymond James Financial Services, Inc., &
Raymond James affiliates (“Raymond James")
Effective
March 1, 2019, shareholders purchasing fund shares through a Raymond James
platform or account will be eligible only for the following load waivers
(front-end sales charge waivers and contingent deferred, or back-end, sales
charge waivers) and discounts, which may differ from those disclosed elsewhere
in the funds' prospectus or SAI.
Front-end
sales load waivers on Class A shares available at Raymond James
•Shares
purchased in an investment advisory program.
•Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same fund (but not any other fund
within the fund family).
•Employees
and registered representatives of Raymond James or its affiliates and their
family members as designated by Raymond James.
•Shares
purchased from the proceeds of redemptions within the same fund family, provided
(1) the repurchase occurs within 90 days following the redemption, (2) the
redemption and purchase occur in the same account, and (3) redeemed shares were
subject to a front-end or deferred sales load (known as Rights of
Reinstatement).
•A
shareholder in the fund’s Class C shares will have their shares converted at net
asset value to Class A shares (or the appropriate share class) of the fund if
the shares are no longer subject to a CDSC and the conversion is in line with
the policies and procedures of Raymond James.
•Death
or disability of the shareholder.
•Shares
sold as part of a systematic withdrawal plan as described in the funds'
prospectus.
•Return
of excess contributions from an IRA Account.
•Shares
sold as part of a required minimum distribution for IRA and retirement accounts
due to the shareholder reaching age 72.
•Shares
sold to pay Raymond James fees but only if the transaction is initiated by
Raymond James.
•Shares
acquired through a right of reinstatement.
Front-end
sales load discounts available at Raymond James: breakpoints and/or rights of
accumulation
•Breakpoints
as described in the funds' prospectus.
•Rights
of accumulation which entitle shareholders to breakpoint discounts will be
automatically calculated based on the aggregated holding of fund family assets
held by accounts within the purchaser’s household at Raymond James. Eligible
fund family assets not held at Raymond James may be included in the rights of
accumulation calculation only if the shareholder notifies his or her financial
advisor about such assets.
Robert
W. Baird & Co. (“Baird”):
Effective
June 15, 2020, shareholders purchasing fund shares through a Baird platform or
account will only be eligible for the following sales charge waivers (front-end
sales charge waivers and CDSC waivers) and discounts, which may differ from
those disclosed elsewhere in this prospectus or the SAI.
Front-End
Sales Charge Waivers on Investors A-shares Available at Baird
•Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same fund.
•Shares
purchase by employees and registers representatives of Baird or its affiliate
and their family members as designated by Baird.
•Shares
purchased using the proceeds of redemptions from a fund, provided (1) the
repurchase occurs within 90 days following the redemption, (2) the redemption
and purchase occur in the same accounts, and (3) redeemed shares were subject to
a front-end or deferred sales charge (known as rights of
reinstatement).
•A
shareholder in the fund's Class C shares will have their share converted at net
asset value to Class A shares of the same fund if the shares are no longer
subject to CDSC and the conversion is in line with the policies and procedures
of Baird.
•Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage account at
Baird, including 401(k) plans, 457 plans, employer-sponsored 403(b) plans,
profit sharing and money purchase pension plans and defined benefit plans. For
purposes of this provision, employer-sponsored retirement plans do not include
SEP IRAs, Simple IRAs or SAR-SEPs.
CDSC
Waivers on Investor A and C shares Available at Baird
•Shares
sold due to death or disability of the shareholder.
•Shares
sold as part of a systematic withdrawal plan as described in the funds'
prospectus.
•Shares
bought due to returns of excess contributions from an IRA Account.
•Shares
sold as part of a required minimum distribution for IRA and retirement accounts
due to the shareholder reaching the qualified age based on applicable Internal
Revenue Service regulations as described in the funds' prospectus.
•Shares
sold to pay Baird fees but only if the transaction is initiated by
Baird.
•Shares
acquired through a right of reinstatement.
Front-End
Sales Charge Discounts Available at Baird: Breakpoints and/or Rights of
Accumulations
•Breakpoints
as described in this prospectus.
•Rights
of accumulations which entitles shareholders to breakpoint discounts will be
automatically calculated based on the aggregated .holding of fund family assets
held by accounts within the purchaser’s household at Baird. Eligible fund family
assets not held at Baird may be included in the rights of accumulations
calculation only if the shareholder notifies his or her financial advisor about
such assets.
•Letters
of Intent (LOI) allow for breakpoint discounts based on anticipated purchases of
fund family assets through Baird, over a 13-month period of time.
Stifel,
Nicolaus & Company, Incorporated (“Stifel”)
Effective
July 1, 2020, shareholders purchasing Fund shares through a Stifel platform or
account or who own shares for which Stifel or an affiliate is the broker-dealer
of record are eligible for the following additional sales charge waiver noted
below. All other sales charge waivers and reductions described elsewhere in the
Fund’ Prospectus or SAI still apply.
Front-end
Sales Load Waiver on Class A Shares
•Class
C shares that have been held for more than seven (7) years will be converted to
Class A shares of the same Fund pursuant to Stifel’s policies and
procedures.
(This
page intentionally left blank.)
MORE
INFORMATION ABOUT MADISON FUNDS
The
following documents contain more information about the Funds and are available
free upon request:
Statement
of Additional Information.
The SAI contains additional information about the Funds. A current SAI has been
filed with the SEC and is incorporated herein by reference. This means that the
SAI, for legal purposes, is part of this prospectus.
Annual
and Semi-Annual Reports.
The Funds’ annual and semi-annual reports provide additional information about a
Fund's’ investments. The annual report contains a discussion of the market
conditions and investment strategies that significantly affected each Fund’s
performance during the last fiscal year.
Requesting
Documents.
You may request a copy of the SAI and the annual and semi-annual reports, make
shareholder inquiries, without charge, or request further information about the
Funds by contacting your financial adviser or by contacting the Funds at:
Madison Funds, P.O. Box 219083, Kansas City, MO 64121-9083; telephone:
1-800-877-6089; Internet: www.madisonfunds.com.
Reports
and other information about the Funds also are available on the EDGAR database
on the SEC’s Internet site a http://www.sec.gov. Copies of this information may
be obtained, after paying a duplications fee, by electronic request at the
following email address: [email protected].
Madison
Funds®
P.O.
Box 219083
Kansas
City, MO 64121-9083
1-800-877-6089
www.madisonfunds.com
Investment
Company
File
No. 811-08261
