ck0001040612-20231031
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Prospectus
February 28,
2024 |
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U.S.
BOND FUNDS: |
| U.S.
STOCK FUNDS: |
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 |
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 |
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 |
Madison
Conservative Allocation Fund
Class
A - MCNAX Class
C - MCOCX |
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| COVERED
CALL STOCK FUND: |
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 |
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% |
Acquired
Fund Fees and Expenses2 |
0.28% |
0.28% |
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 |
| 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 |
% |
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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% |
| Lowest: |
2Q
2022 |
-7.84% |
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Average Annual Total Returns
For Periods Ended December 31, 2023
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Year |
5
Years |
10
Years |
Class
A Shares –
Return Before Taxes |
1.72% |
2.07% |
2.57% |
Return After
Taxes on Distributions |
0.80% |
0.77% |
1.24% |
Return After
Taxes on Distributions and Sale of Fund
Shares |
1.08% |
1.32% |
1.67% |
Class
C Shares –
Return
before Taxes |
6.13% |
2.51% |
2.41% |
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% |
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% |
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.
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 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 |
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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 |
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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% |
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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Share
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% |
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 |
| 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 |
% |
- |
Foreign
Stock Funds: |
0.0 |
% |
- |
Short-Term
Investments: |
2.1 |
% |
- |
Stock
Funds/Common Stocks: |
48.8 |
% |
- |
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% |
| Lowest: |
1Q
2020 |
-13.59% |
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Average
Annual Total Returns
For
Periods Ended December 31, 2023
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Year |
5
Years |
10
Years |
Class
A Shares –
Return Before Taxes |
-2.62% |
5.64% |
5.46% |
Return After
Taxes on Distributions |
-5.88% |
3.50% |
3.78% |
Return After
Taxes on Distributions and Sale of Fund
Shares |
0.53% |
4.30% |
4.14% |
Class
C Shares –
Return
Before Taxes |
1.62% |
6.10% |
5.30% |
S&P
500®
Index (reflects no deduction for
sales charges, account fees, expenses or
taxes) |
26.29% |
15.69% |
12.03% |
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% |
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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Share
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 |
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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 |
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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 |
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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Share
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% |
Acquired
Fund Fees and Expenses2 |
0.04% |
0.04% |
0.04% |
0.04% |
0.04% |
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 |
| 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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| Highest/Lowest
quarter end results during this period were: |
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2Q
2020 |
19.31% |
| Lowest: |
1Q
2020 |
-20.22% |
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Average
Annual Total Returns
For
Periods Ended December 31, 2023
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Year |
5
Years |
10
Years |
Since
Inception
2/28/2022 |
Class
A Shares –
Return Before Taxes |
3.92% |
10.84% |
6.63% |
N/A |
Return
After Taxes on Distributions |
0.87% |
7.90% |
3.60% |
N/A |
Return
After Taxes on Distributions and Sale of Fund
Shares |
2.51% |
7.25% |
3.74% |
N/A |
Class
C Shares –
Return
Before Taxes |
8.36% |
11.36% |
6.48% |
N/A |
Class
Y Shares –
Return
before Taxes |
10.62% |
12.45% |
7.54% |
N/A |
Class
I Shares –
Return
before Taxes |
10.63% |
N/A |
N/A |
8.63% |
Class
R6 Shares –
Return
before Taxes |
10.66% |
12.59% |
7.68% |
N/A |
S&P
500®
Index (reflects no deduction for
sales charges, account fees, expenses or
taxes) |
26.29% |
15.69% |
12.03% |
6.60% |
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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Share
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.
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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 |
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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 |
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:
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| 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: |
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| Highest: |
4Q
2022 |
13.86% |
| Lowest: |
1Q
2020 |
-20.41% |
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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 5/29/2020 |
Since
Inception 8/31/2020 |
Since
Inception 2/28/2022 |
Class
Y Shares –
Return Before Taxes |
1.72% |
9.47% |
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