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| UNITED STATES SECURITIES AND EXCHANGE COMMISSION |
| Washington, DC 20549 |
| | FORM N-CSRS |
| | | CERTIFIED SHAREHOLDER REPORT OF REGISTERED |
| MANAGEMENT INVESTMENT COMPANIES |
| | Investment Company Act file number 811-08261 |
| | | Madison Funds |
| (Exact name of registrant as specified in charter) |
| | 550 Science Drive, Madison, WI 53711 |
| (Address of principal executive offices)(Zip code) |
| | Kevin S. Thompson |
| Chief Legal Officer |
| 550 Science Drive |
| Madison, WI 53711 |
| (Name and address of agent for service) |
|
Registrant’s telephone number, including area code: 608-274-0300
Date of fiscal year end: October 31
Date of reporting period: April 30, 2017
Form N-CSRS is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSRS in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSRS, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSRS unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. s 3507.
Item 1. Certified Financial Statement
Semi-annual Report
(unaudited)
April 30, 2017
Madison Conservative Allocation Fund
Madison Moderate Allocation Fund
Madison Aggressive Allocation Fund
Madison Government Money Market Fund
Madison Tax-Free Virginia Fund
Madison Tax-Free National Fund
Madison High Quality Bond Fund
Madison Core Bond Fund
Madison Corporate Bond Fund
Madison High Income Fund
Madison Diversified Income Fund
Madison Covered Call & Equity Income Fund
Madison Dividend Income Fund
Madison Large Cap Value Fund
Madison Investors Fund
Madison Mid Cap Fund
Madison Small Cap Fund
Madison International Stock Fund
To Our Shareholders:
The bull market celebrated its eighth anniversary as equities rose sharply and bonds re-trenched during the past six months. Since the end of the last fiscal year (October 31, 2016), the S&P 500® gained 13.32%, the Russell Midcap® rose 12.94% and the MSCI EAFE advanced 11.47%. The Federal Reserve voted to raise short-term interest rates twice during the period, leading to negative returns in most broad bond market indices as interest rates along the yield curve rose and the yield curve flattened. The Barclays Aggregate Index® declined (0.67)% for the six month period. Investment grade corporate bonds, as a sector, managed to about break-even for the period, while high yield bonds were the clear winner in the bond universe, with the Bank of America Merrill Lynch High Yield Master® Index returning 5.49% for the six months.
March 9, 2008 was the beginning of what is now the second longest bull market in history, with the S&P 500 gaining over 250% since that date. Interest rates also declined sharply over the eight-year period which drove bond prices upward and returns soaring as investors plowed over $1.5 trillion into bond funds. Despite the strong market over this span, investors expressed caution investing in stocks as a mere $256 billion flowed into stock funds over the same eight-year period. Interestingly, retail investors, who often enter the markets late after advances have occurred, are showing signs of favoring stocks again, sending over $100 billion into equity funds during the first quarter of 2017.
Although the flow of headline political news was mind-numbing, the financial markets were surprisingly calm during the first quarter. The Chicago Board Options Exchange Volatility Index (VIX) was near its lowest level since mid-2014 and U.S. equity markets had a streak of over 109 days (the longest since 1995) without a daily decline of 1% or more - all of which was a bit perplexing given the talk of significant policy change from Washington. In fact, it was the uncertainty over health care legislation that was the likely culprit in the first daily decline, greater than 1%, on March 21. Typically, markets dislike uncertainty as businesses are reticent to make significant capital investments without knowing the “ground rules”, good or bad. But this environment appears to be different, with consumers and businesses showing high levels of optimism as sentiment levels reach post-crisis highs.
Perhaps much of the recent run-up in asset values can be attributed to expectations of tax cuts, infrastructure spending and a more business-friendly environment promised by the President. That optimism was called into question as the failure to replace the Affordable Health Care Act created concern that the entire Trump pro-business agenda might be in jeopardy. While the potential for policy changes buoyed the markets, fourth quarter 2016 economic data (released in the first quarter of 2017) also provided fuel as jobs, housing, manufacturing and consumer confidence all pointed to sustained growth. Recognizing the continued positive employment and inflation data, the Federal Reserve voted to increase short-term interest rates in December and March and indicated additional hikes were likely, although at a “gradual” rate (perhaps two additional hikes in 2017). First quarter 2017 Gross Domestic Product (GDP) was recently reported to have only risen by 0.7% on an annualized basis, reminding the markets that economic progress is seldom linear, but rather characterized by fits-and-starts. With the economy temporarily hitting a soft patch, and inflation measures remaining within the Fed’s desired range, we expect little change in the Fed Funds Rate over the very near-term, but anticipate more increases later this year as the economy re-accelerates from the tepid first quarter rate of growth.
Looking ahead, uncertainty persists overseas as Europe continues to face populist pressure on the heels of the U.S. Presidential election and the U.K. referendum to leave the European Union (EU). One sign voters are starting to pay closer attention to the potential for surprise outcomes was the recent Dutch election, where the highest voter turnout in three decades led to a defeat of the populist candidate. This election was widely seen as a litmus test of populist sentiment in Europe in advance of the French presidential vote in April and the German national election in September. Similar to the defeated Dutch candidate, French voters opted against the populist candidate, electing a more mainstream politician from a nascent party. On the other side of the globe, tensions appear to be increasing with North Korea as the U.S. reiterates that a pre-emptive military strike and tougher sanctions are all options on the table in dealing with Pyongyang.
While the performance of risk-assets has been quite remarkable in this uncertain environment, several headwinds warrant a cautious approach in our opinion. Elevated stock valuations, along with higher interest rates, higher energy prices (from a year ago), persistently low levels of volatility and elevated economic and political uncertainty increase the likelihood of greater volatility ahead. Outside of the U.S., the prospect of continued populist sentiment (and constraints on global trade) along with elevated geopolitical risk indicates global economic growth may become more subdued. We acknowledge the prospect for positive policy change, optimistic consumers and businesses and an expectation for continued economic growth. But we also believe that lower-risk, high-quality companies, along with shorter duration, high-quality bonds will allow investors to continue to participate in the market, while providing some shelter should more turbulent times unfold.
Not Part of the Semi-annual Report
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| Madison Funds | April 30, 2017 |
| |
| |
| Table of Contents |
| | | Page |
| Review of Period | | 2 |
Madison Conservative Allocation Fund | | 2 |
Madison Moderate Allocation Fund | | 2 |
Madison Aggressive Allocation Fund | | 3 |
Madison Government Money Market Fund | | 3 |
Madison Tax-Free Virginia Fund | | 3 |
Madison Tax-Free National Fund | | 3 |
Madison High Quality Bond Fund | | 4 |
Madison Core Bond Fund | | 4 |
Madison Corporate Bond Fund | | 5 |
Madison High Income Fund | | 5 |
Madison Diversified Income Fund | | 5 |
Madison Covered Call & Equity Income Fund | | 6 |
Madison Dividend Income Fund | | 6 |
Madison Large Cap Value Fund | | 7 |
Madison Investors Fund | | 7 |
Madison Mid Cap Fund | | 7 |
Madison Small Cap Fund | | 8 |
Madison International Stock Fund | | 8 |
Notes to Review of Period | | 9 |
| Portfolios of Investments | | |
Madison Conservative Allocation Fund | | 10 |
Madison Moderate Allocation Fund | | 10 |
Madison Aggressive Allocation Fund | | 10 |
| Portfolios of Investments - continued | | |
Madison Government Money Market Fund | | 11 |
Madison Tax-Free Virginia Fund | | 11 |
Madison Tax-Free National Fund | | 12 |
Madison High Quality Bond Fund | | 14 |
Madison Core Bond Fund | | 14 |
Madison Corporate Bond Fund | | 17 |
Madison High Income Fund | | 18 |
Madison Diversified Income Fund | | 19 |
Madison Covered Call & Equity Income Fund | | 22 |
Madison Dividend Income Fund | | 24 |
Madison Large Cap Value Fund | | 24 |
Madison Investors Fund | | 25 |
Madison Mid Cap Fund | | 25 |
Madison Small Cap Fund | | 26 |
Madison International Stock Fund | | 27 |
| Financial Statements | | |
Statements of Assets and Liabilities | | 28 |
Statements of Operations | | 30 |
Statements of Changes in Net Assets | | 32 |
Financial Highlights | | 37 |
| Notes to Financial Statements | | 50 |
| Other Information | | 59 |
| | *Although each Fund’s name begins with the word “Madison,” the word “Madison” may be omitted in this report for simplicity when referring to any particular Fund, group of Funds or list of Funds. |
| | |
| | Nondeposit investment products are not federally insured, involve investment risk, may lose value and are not obligations of or guaranteed by any financial institution. |
| | |
| | For more complete information about Madison Funds, including charges and expenses, request a prospectus from your financial advisor or from Madison Funds, P.O. Box 8390, Boston, MA 02266-8390. Consider the investment objectives, risks, and charges and expenses of any fund carefully before investing. The prospectus contains this and other information about the investment company. |
| | |
| | For more current performance information, please call 1-800-877-6089 or visit our website at www.madisonfunds.com. Current performance may be lower or higher than the performance data quoted within. Past performance does not guarantee future results. |
| | |
| | Nothing in this report represents a recommendation of a security by the investment adviser. Portfolio holdings may have changed since the date of this report. |
| Madison Funds | April 30, 2017 |
| |
| |
| Review of Period (unaudited) |
The Madison Conservative Allocation, Moderate Allocation and Aggressive Allocation Funds (the “Funds”) invest primarily in shares of registered investment companies (the “Underlying Funds”). The Funds will be diversified among a number of asset classes and their allocation among Underlying Funds will be based on an asset allocation model developed by Madison Asset Management, LLC (“Madison”), the Funds’ investment adviser. The team may use multiple analytical approaches to determine the appropriate asset allocation, including:
| • | | Asset allocation optimization analysis – considers the degree to which returns in different asset classes do or do not move together, and the Funds’ aim to achieve a favorable overall risk profile for any targeted portfolio return. |
| • | | Scenario analysis – historical and expected return data is analyzed to model how individual asset classes and combinations of asset classes would affect the Funds under different economic and market conditions. |
| • | | Fundamental analysis – draws upon Madison’s investment teams to judge each asset class against current and forecasted market conditions. Economic, industry and security analysis is used to develop return and risk expectations that may influence asset class selection. In addition, Madison has a flexible mandate which permits the Funds, at the sole discretion of Madison, to materially reduce equity risk exposures when and if conditions are deemed to warrant such an action. |
| MADISON CONSERVATIVE ALLOCATION FUND |
| |
| INVESTMENT STRATEGY HIGHLIGHTS |
Under normal circumstances, the Madison Conservative Allocation 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.
The Madison Conservative Allocation Fund (Class A at NAV) returned 3.94% for the period, outperforming the Conservative Allocation Fund Custom Index return of 3.91%. The Fund underperformed its peers as measured by the Morningstar Conservative Allocation Category, which advanced 4.79%. For more up-to-date information about the most recent performance information of the Fund, including a quarterly investment letter from the portfolio managers, please visit www. madisonfunds.com.
| PORTFOLIO ALLOCATION AS A PERCENTAGE OF NET ASSETS AS OF 4/30/17 |
| |
| Alternative Funds | | 2.2 | % |
| Bond Funds | | 60.0 | % |
| Foreign Stock Funds | | 11.7 | % |
| Money Market Funds | | 3.8 | % |
| Stock Funds | | 22.7 | % |
| Net Other Assets and Liabilities | | (0.4 | )% |
| |
| TOP TEN HOLDINGS AS A PERCENTAGE OF NET ASSETS AS OF 4/30/17 |
| |
| Madison Core Bond Fund Class Y | | 20.8 | % |
| iShares 7-10 Year Treasury Bond ETF | | 8.9 | % |
| RidgeWorth Seix Floating Rate High Income Fund | | 8.0 | % |
| Madison Corporate Bond Fund Class Y | | 7.1 | % |
| Vanguard FTSE All-World ex-U.S. ETF | | 6.8 | % |
| Baird Aggregate Bond Fund Institutional Shares | | 5.5 | % |
| Madison Investors Fund Class Y | | 5.4 | % |
| Madison Dividend Income Fund Class Y | | 5.2 | % |
| Vanguard Growth ETF | | 4.9 | % |
| Metropolitan West Total Return Bond Fund Class I | | 3.4 | % |
| |
| MADISON MODERATE ALLOCATION FUND |
| |
| INVESTMENT STRATEGY HIGHLIGHTS |
Under normal circumstances, the Madison Moderate Allocation 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 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.
The Madison Moderate Allocation Fund (Class A at NAV) returned 7.16% for the period, while its blended benchmark, the Moderate Allocation Fund Custom Index, returned 7.28%. The Fund lagged its Morningstar peer group as the Moderate Allocation Category returned an average of 7.52%. For more up-to-date information about the most recent performance information of the Fund, including a quarterly investment letter from the portfolio managers, please visit www.madisonfunds.com.
| PORTFOLIO ALLOCATION AS A PERCENTAGE OF NET ASSETS AS OF 4/30/17 |
| |
| Alternative Funds | | 2.2 | % |
| Bond Funds | | 33.3 | % |
| Foreign Stock Funds | | 19.9 | % |
| Money Market Funds | | 4.1 | % |
| Stock Funds | | 40.8 | % |
| Net Other Assets and Liabilities | | (0.3 | )% |
| |
| TOP TEN HOLDINGS AS A PERCENTAGE OF NET ASSETS AS OF 4/30/17 |
| |
| Madison Core Bond Fund Class Y | | 15.1 | % |
| Vanguard FTSE All-World ex-U.S. ETF | | 10.8 | % |
| Madison Investors Fund Class Y | | 10.0 | % |
| Madison Dividend Income Fund Class Y | | 9.9 | % |
| Vanguard Growth ETF | | 6.7 | % |
| Vanguard FTSE Europe ETF | | 5.4 | % |
| iShares Core S&P Mid-Cap ETF | | 5.1 | % |
| iShares 7-10 Year Treasury Bond ETF | | 4.9 | % |
| RidgeWorth Seix Floating Rate High Income Fund Institutional Shares | | 4.2 | % |
| Baird Aggregate Bond Fund Institutional Shares | | 4.1 | % |
| |
| Madison Funds | Review of Period (unaudited) - continued | April 30, 2017 |
| MADISON AGGRESSIVE ALLOCATION FUND |
| |
| INVESTMENT STRATEGY HIGHLIGHTS |
Under normal circumstances, the Aggressive Allocation 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 Affiliated Underlying Funds. Generally, Madison will not invest more than 75% of Fund’s net assets, at the time of purchase, in Affiliated Underlying Funds.
The Madison Aggressive Allocation Fund (Class A at NAV) returned 9.89% for the period, trailing its blended benchmark, the Aggressive Allocation Fund Custom Index, which returned 10.04%. The Fund outperformed its Morningstar Aggressive Allocation Category peer group, which averaged a 9.36% return. For more up-to-date information about the most recent performance information of the Fund, including a quarterly investment letter from the portfolio managers, please visit www.madisonfunds.com.
| PORTFOLIO ALLOCATION AS A PERCENTAGE OF NET ASSETS AS OF 4/30/17 |
| |
| Alternative Funds | | 2.2 | % |
| Bond Funds | | 12.5 | % |
| Foreign Stock Funds | | 26.7 | % |
| Money Market Funds | | 3.6 | % |
| Stock Funds | | 54.8 | % |
| Net Other Assets and Liabilities | | 0.2 | % |
| |
| TOP TEN HOLDINGS AS A PERCENTAGE OF NET ASSETS AS OF 4/30/17 |
| |
| Vanguard FTSE All-World ex-U.S. ETF | | 13.5 | % |
| Madison Investors Fund Class Y | | 12.1 | % |
| Madison Dividend Income Fund Class Y | | 11.9 | % |
| Vanguard Growth ETF | | 9.0 | % |
| Madison Core Bond Fund Class Y | | 8.8 | % |
| iShares Core S&P Mid-Cap ETF | | 8.1 | % |
| Vanguard FTSE Europe ETF | | 7.6 | % |
| Madison Mid Cap Fund Class Y | | 3.7 | % |
| Vanguard Information Technology ETF | | 3.0 | % |
| Vanguard Health Care ETF | | 2.9 | % |
| |
| MADISON GOVERNMENT MONEY MARKET FUND |
| |
| INVESTMENT STRATEGY HIGHLIGHTS |
The Madison Government Money Market Fund (formerly the Cash Reserve Fund) invests at least 99.5% of its total assets in cash, government securities, and/or repurchase agreements that are collateralized by cash or government securities, including but not limited to the Federal National Mortgage Association, Federal Home Loan Banks, Federal Home Loan Mortgage Corporate, and Federal Farm Credit Banks.
The Fund is a money market fund that seeks to maintain a stable net asset value (“NAV”) of $1.00 per share. The Fund’s investments must have a remaining maturity of no more than 397 days and must be high quality. The Fund maintains a dollar-weighted average portfolio maturity of 60 days or less.
The Madison Government Money Market Fund (Class A) returned 0.01% for the period, compared to a 0.23% return on the Fund’s 90 day U.S. Treasury Bill benchmark. The U.S. Federal Reserve raised the Federal Funds Rate twice during the six-month period, leading short-term Treasury Bill yields to gradually increase during the period. Madison maintained its fee waivers to preserve investment capital. For more up-to-date information about the Fund, please visit www.madisonfunds.com.
| PORTFOLIO ALLOCATION AS A PERCENTAGE OF NET ASSETS AS OF 4/30/17 |
| |
| Fannie Mae | | 23.3 | % |
| Federal Farm Credit Bank | | 3.1 | % |
| Federal Home Loan Bank | | 38.6 | % |
| Freddie Mac | | 18.3 | % |
| U.S. Treasury Notes | | 10.2 | % |
| Money Market Funds | | 3.6 | % |
| Net Other Assets and Liabilities | | 2.9 | % |
| |
| MADISON TAX-FREE VIRGINIA FUND |
| |
| INVESTMENT STRATEGY HIGHLIGHTS |
The Madison Tax-Free Virginia Fund seeks to achieve its investment objective by investing at least 80% of its net assets 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 invests in intermediate and long-term bonds having average, aggregate maturities (at the portfolio level) of 7 to 15 years.
The Madison Tax-Free Virginia Fund (Class Y) had a total return of (0.60)% for the period. The Bank of America Merrill Lynch 1-22 Year Municipal Index® declined 0.25%, while the Fund’s Morningstar peer group, the Municipal Single State Intermediate Category returned (0.76)%. For more up-to-date information about the Fund, please visit www.madisonfunds.com.
| SECTOR ALLOCATION AS A PERCENTAGE OF NET ASSETS AS OF 4/30/17 |
| |
| Airport | | 1.0 | % |
| Development | | 6.5 | % |
| Education | | 13.6 | % |
| Facilities | | 4.0 | % |
| General | | 11.2 | % |
| General Obligation | | 26.8 | % |
| Medical | | 7.1 | % |
| Multifamily Housing | | 6.0 | % |
| Power | | 4.3 | % |
| Transportation | | 5.5 | % |
| Utilities | | 1.5 | % |
| Water | | 10.6 | % |
| Net Other Assets and Liabilities | | 1.9 | % |
| |
| TOP TEN HOLDINGS AS A PERCENTAGE OF NET ASSETS AS OF 4/30/17 |
| |
| Northern Virginia Transportation Authority, 5.0%, 6/1/30 | | 4.2 | % |
| Fairfax County Redevelopment & Housing Authority, 4.750%, 10/1/36 | | 3.4 | % |
| City of Portsmouth VA, 5.0%, 2/1/31 | | 3.3 | % |
| Virginia Commonwealth Transportation Board, 5.0%, 3/15/25 | | 2.8 | % |
| Chesterfield County Economic Development Authority, 5.0%, 5/1/23 | | 2.7 | % |
| Commonwealth of Virginia, 5.0%, 6/1/23 | | 2.7 | % |
| Virginia College Building Authority, 5.0%, 2/1/23 | | 2.7 | % |
| Virginia Resources Authority, 5.0%, 10/1/23 | | 2.5 | % |
| Norfolk Economic Development Authority, 5.0%, 11/1/29 | | 2.5 | % |
| Norfolk Economic Development Authority, 5.0%, 11/1/36 | | 2.5 | % |
| |
| MADISON TAX-FREE NATIONAL FUND |
| |
| INVESTMENT STRATEGY HIGHLIGHTS |
The Madison Tax-Free National Fund seeks to achieve its investment objective by investing at least 80% of its net assets 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 invests in intermediate and long-term bonds having average, aggregate maturities (at the portfolio level) of 7 to 15 years. The primary difference between this Fund and the Madison Tax-Free Virginia Fund is that the Madison Tax-Free Virginia Fund will invest in bonds that are exempt from federal and state
| Madison Funds | Review of Period (unaudited) - continued | April 30, 2017 |
income tax for residents of Virginia, while this Fund will invest in bonds that are exempt from federal income tax.
The Madison Tax-Free National Fund (Class Y) had a total return of (0.61)% for the period. The Bank of America Merrill Lynch 1-22 Year Municipal Index® was down 0.25%, while the Fund’s Morningstar peer group, the Municipal National Long Category, declined 1.05%. For more up-to-date information about the most recent performance information of the Fund, including a quarterly investment letter from the portfolio managers, please visit www.madisonfunds.com.
| STATE ALLOCATION AS A PERCENTAGE OF NET ASSETS AS OF 4/30/17 |
| |
| Alabama | | 2.5 | % |
| Arkansas | | 0.7 | % |
| Colorado | | 1.9 | % |
| Delaware | | 1.6 | % |
| Florida | | 17.7 | % |
| Georgia | | 5.0 | % |
| Hawaii | | 2.1 | % |
| Illinois | | 0.6 | % |
| Indiana | | 3.7 | % |
| Iowa | | 2.9 | % |
| Kansas | | 3.4 | % |
| Maryland | | 2.8 | % |
| Michigan | | 3.5 | % |
| Missouri | | 6.3 | % |
| New Jersey | | 4.3 | % |
| New Mexico | | 1.9 | % |
| New York | | 3.4 | % |
| North Carolina | | 4.7 | % |
| Ohio | | 2.3 | % |
| South Carolina | | 8.2 | % |
| Tennessee | | 0.4 | % |
| Texas | | 9.3 | % |
| Virginia | | 2.5 | % |
| Washington | | 3.2 | % |
| Wisconsin | | 3.7 | % |
| Net Other Assets and Liabilities | | 1.4 | % |
| |
| TOP TEN HOLDINGS AS A PERCENTAGE OF NET ASSETS AS OF 4/30/17 |
| |
| City of Margate FL General Obligation, 5.0%, 7/1/25 | | 3.7 | % |
| Anderson County School District No. 1, General Obligation, 5.0%, 3/1/25 | | 3.4 | % |
| Maple School District, General Obligation, 5.0%, 4/1/24 | | 3.0 | % |
| City of Rockville MD, General Obligation, 5.0%, 6/1/24 | | 2.8 | % |
| City of Port St. Lucie FL Utility System Revenue, 5.0%, 9/1/27 | | 2.7 | % |
| City of Wichita KS, General Obligation, 5.0%, 12/1/24 | | 2.4 | % |
| Orlando Utilities Commission, 5.0%, 10/1/22 | | 2.4 | % |
| County of Miami-Dade FL, 5.0%, 3/1/25 | | 2.4 | % |
| Town of Cary NC Combined Utility Systems Revenue, 5.0%, 12/1/23 | | 2.3 | % |
| Cleveland-Cuyahoga County Port Authority, 5.0%, 7/1/24 | | 2.3 | % |
| |
| MADISON HIGH QUALITY BOND FUND |
| |
| INVESTMENT STRATEGY HIGHLIGHTS |
The Madison High Quality Bond Fund seeks to achieve its investment objectives 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 management will (1) shorten or lengthen the dollar weighted average maturity 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 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 or equivalent.
The Madison High Quality Bond Fund (Class Y) returned (0.25)% for the period, beating the Fund’s benchmark, the Bloomberg Barclays U.S. Intermediate Government Credit A+ Index® which declined 0.48%. The Morningstar Short-Term Bond peer group gained 0.51% for the period. For more up-to-date information about the most recent performance information of the Fund, including a quarterly investment letter from the portfolio managers, please visit www.madisonfunds.com.
| SECTOR ALLOCATION AS A PERCENTAGE OF NET ASSETS AS OF 4/30/17 |
| |
| Consumer Discretionary | | 6.9 | % |
| Consumer Staples | | 1.5 | % |
| Energy | | 1.5 | % |
| Financials | | 12.6 | % |
| Health Care | | 3.1 | % |
| Industrials | | 3.1 | % |
| Information Technology | | 8.1 | % |
| Real Estate | | 1.9 | % |
| Fannie Mae | | 7.4 | % |
| Freddie Mac | | 3.6 | % |
| U.S. Treasury Notes | | 46.7 | % |
| Money Market Funds | | 2.8 | % |
| Net Other Assets and Liabilities | | 0.8 | % |
| |
| TOP TEN HOLDINGS AS A PERCENTAGE OF NET ASSETS AS OF 4/30/17 |
| |
| U.S. Treasury Note, 2.625%, 11/15/20 | | 4.6 | % |
| U.S. Treasury Note, 2.500%, 8/15/23 | | 4.6 | % |
| U.S. Treasury Note, 1.125%, 12/31/19 | | 4.5 | % |
| U.S. Treasury Note, 3.750%, 11/15/18 | | 4.4 | % |
| U.S. Treasury Note, 3.625%, 2/15/20 | | 4.2 | % |
| U.S. Treasury Note, 1.500%, 8/15/26 | | 4.2 | % |
| U.S. Treasury Note, 3.125%, 5/15/19 | | 4.1 | % |
| U.S. Treasury Note, 3.875%, 5/15/18 | | 4.1 | % |
| U.S. Treasury Note, 1.500%, 3/31/19 | | 4.0 | % |
| U.S. Treasury Note, 1.500%, 12/31/18 | | 4.0 | % |
| |
| MADISON CORE BOND FUND |
| |
| INVESTMENT STRATEGY HIGHLIGHTS |
Under normal market conditions, the Madison Core Bond Fund invests at least 80% of its net assets 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. The Fund strives to add incremental return in the portfolio by making strategic decisions related to credit risk, sector exposure and yield curve positioning. The Fund may invest in corporate debt securities, U.S. Government debt securities, foreign government debt securities, non-rated debt securities, and asset-backed, mortgage-backed and commercial mortgage-backed securities.
The Madison Core Bond Fund (Class A at NAV) returned (0.36)% for the period, beating the Fund’s benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index®, which returned (0.67)%, and the Bank of America Merrill Lynch U.S. Corporate Government and Mortgage Index, which returned (0.71)%. The Morningstar Intermediate-Term Bond peer group returned (0.13)% for the period. For more up-to-date information about the most recent performance information of the Fund, including a quarterly investment letter from the portfolio managers, please visit www.madisonfunds.com.
| PORTFOLIO ALLOCATION AS A PERCENTAGE OF NET ASSETS AS OF 4/30/17 |
| |
| Asset Backed Securities | | 3.1 | % |
| Collateralized Mortgage Obligations | | 2.9 | % |
| Commercial Mortgage-Backed Securities | | 2.9 | % |
| Corporate Notes and Bonds | | 34.8 | % |
| Long Term Municipal Bonds | | 8.2 | % |
| Mortgage Backed Securities | | 22.6 | % |
| Short-Term Investments | | 1.7 | % |
| U.S. Government and Agency Obligations | | 22.6 | % |
| Net Other Assets and Liabilities | | 1.2 | % |
| |
| TOP TEN HOLDINGS AS A PERCENTAGE OF NET ASSETS AS OF 4/30/17 |
| |
| U.S. Treasury Note, 3.125%, 5/15/21 | | 1.9 | % |
| U.S. Treasury Bond, 4.500%, 5/15/38 | | 1.7 | % |
| U.S. Treasury Note, 2.750%, 2/28/18 | | 1.4 | % |
| U.S. Treasury Note, 2.625%, 1/31/18 | | 1.4 | % |
| U.S. Treasury Note, 1.875%, 10/31/17 | | 1.4 | % |
| U.S. Treasury Note, 1.375%, 2/28/19 | | 1.4 | % |
| U.S. Treasury Note, 3.875%, 5/15/18 | | 1.3 | % |
| U.S. Treasury Bond, 6.625%, 2/15/27 | | 1.3 | % |
| U.S. Treasury Note, 4.250%, 11/15/17 | | 1.2 | % |
| U.S. Treasury Note, 2.0%, 10/31/21 | | 1.2 | % |
| |
| Madison Funds | Review of Period (unaudited) - continued | April 30, 2017 |
| MADISON CORPORATE BOND FUND |
| |
| INVESTMENT STRATEGY HIGHLIGHTS |
The Madison Corporate Bond Fund seeks to achieve its investment objective through diversified investment in a broad range of corporate debt securities. Under normal market conditions, the Fund will invest at least 80% of its net assets in income-producing corporate bonds, and at least 80% of its assets in investment grade bonds. Up to 20% of the Fund’s assets may be invested in non-investment grade fixed-income securities commonly referred to as “high yield” or “junk” bonds. The Fund expects to maintain an average overall portfolio quality of BBB or better, an overall portfolio dollar weighted average maturity of 15 years or less, and an overall portfolio duration within 25% of the Bloomberg Barclays U.S. Corporate Investment Grade Index benchmark (with the flexibility to occasionally vary from the benchmark by up to 50% when the investment adviser believes interest rates are likely to materially change).
The Madison Corporate Bond Fund (Class Y) gained 0.19% for the period, while its benchmark, the Bloomberg Barclays U.S. Corporate Bond Index® gained 0.23%. The Fund lagged its peer group, the Morningstar Corporate Bond category, which averaged a 0.49% gain. For more up-to-date information about the most recent performance information of the Fund, including a quarterly investment letter from the portfolio managers, please visit www.madisonfunds.com.
| SECTOR ALLOCATION AS A PERCENTAGE OF NET ASSETS AS OF 4/30/17 |
| |
| Consumer Discretionary | | 12.8 | % |
| Consumer Staples | | 4.1 | % |
| Energy | | 13.5 | % |
| Financials† | | 30.2 | % |
| Health Care | | 4.2 | % |
| Industrials | | 10.6 | % |
| Information Technology | | 7.5 | % |
| Materials | | 3.6 | % |
| Real Estate | | 3.4 | % |
| Telecommunication Services | | 5.2 | % |
| Utilities | | 0.4 | % |
| Long Term Municipal Bonds | | 3.0 | % |
| Money Market Funds | | 0.8 | % |
| Net Other Assets and Liabilities | | 0.7 | % |
| |
| †Financials includes securities in the following industries: Banks; Diversified Financial Services and Insurance. |
| |
| TOP TEN HOLDINGS AS A PERCENTAGE OF NET ASSETS AS OF 4/30/17 |
| |
| Valero Energy Corp., 6.625%, 6/15/37 | | 1.9 | % |
| General Electric Co., 6.750%, 3/15/32 | | 1.9 | % |
| Comcast Corp., 6.450%, 3/15/37 | | 1.8 | % |
| AT&T Inc., 5.0%, 3/1/21 | | 1.5 | % |
| Energy Transfer Partners L.P., 5.200%, 2/1/22 | | 1.5 | % |
| Affiliated Managers Group Inc., 4.250%, 2/15/24 | | 1.5 | % |
| Prudential Financial Inc., 3.500%, 5/15/24 | | 1.4 | % |
| Packaging Corp. of America, 3.650%, 9/15/24 | | 1.4 | % |
| Capital One Financial Corp., 2.450%, 4/24/19 | | 1.4 | % |
| Huntington National Bank/The, 2.200%, 4/1/19 | | 1.4 | % |
| |
| MADISON HIGH INCOME FUND |
| |
| INVESTMENT STRATEGY HIGHLIGHTS |
The Madison High Income Fund invests primarily in lower-rated, higher-yielding; income bearing securities, such as “junk” bonds. Because the performance of these securities has historically been strongly influenced by economic conditions, the Fund may rotate securities selection by business sector according to economic outlook. Under normal market conditions, the Fund invests at least 80% of its net assets in bonds rated lower than investment grade (BBB/Baa) and their unrated equivalents or other high-yielding securities.
The Madison High Income Fund (class A at NAV) returned 4.24% during the period, trailing the Bank of America Merrill Lynch U.S. High Yield Master Constrained Index’s 5.49% return. The Fund lagged its Morningstar High Yield Bond category peer group, which returned 4.88%. For more up-to-date information about the most recent performance information of the Fund, including a quarterly investment letter from the portfolio managers, please visit www.madisonfunds.com.
| SECTOR ALLOCATION AS A PERCENTAGE OF NET ASSETS AS OF 4/30/17 |
| |
| Consumer Discretionary | | 23.3 | % |
| Consumer Staples | | 5.8 | % |
| Energy | | 9.6 | % |
| Financials | | 8.7 | % |
| Health Care | | 3.3 | % |
| Industrials | | 10.6 | % |
| Information Technology | | 7.7 | % |
| Materials | | 5.0 | % |
| Telecommunication Services | | 5.1 | % |
| Utilities | | 5.5 | % |
| Bond Funds | | 2.7 | % |
| Money Market Funds | | 10.2 | % |
| Net Other Assets and Liabilities | | 2.5 | % |
| |
| TOP TEN HOLDINGS AS A PERCENTAGE OF NET ASSETS AS OF 4/30/17 |
| |
| Outfront Media Capital LLC / Outfront Media Capital Corp., 5.625%, 2/15/24 | | 2.2 | % |
| Donnelley Financial Solutions Inc., 8.250%, 10/15/24 | | 2.2 | % |
| Unit Corp., 6.625%, 5/15/21 | | 2.2 | % |
| Belden Inc., 5.500%, 9/1/22 | | 2.2 | % |
| Rayonier AM Products Inc., 5.500%, 6/1/24 | | 2.2 | % |
| Scientific Games International Inc., 6.250%, 9/1/20 | | 2.1 | % |
| Diebold Nixdorf Inc., 8.500%, 4/15/24 | | 1.9 | % |
| Jack Ohio Finance LLC / Jack Ohio Finance 1 Corp., 6.750%, 11/15/21 | | 1.8 | % |
| AES Corp., 5.500%, 3/15/24 | | 1.8 | % |
| Alliance Data Systems Corp., 6.375%, 4/1/20 | | 1.7 | % |
| |
| MADISON DIVERSIFIED INCOME FUND |
| |
| INVESTMENT STRATEGY HIGHLIGHTS |
The Madison Diversified Income Fund seeks income by investing in a broadly diversified array of securities including bonds, common stocks, real estate securities, foreign market bonds and stocks and money market instruments. Bonds, stock and cash components will vary, reflecting the portfolio managers’ judgments of the relative availability of attractively yielding and priced stocks and bonds; however, under normal market conditions, the Fund’s portfolio managers generally attempt to target a 40% bond and 60% stock investment allocation. Nevertheless, bonds may constitute up to 80% of the Fund’s assets, stocks will constitute up to 70% of the Fund’s assets, real estate securities will constitute up to 25% of the Fund’s assets, foreign stocks and bonds will constitute up to 25% of the Fund’s assets and money market instruments may constitute up to 25% of the Fund’s assets. The Fund intends to limit the investment in lower credit quality bonds to less than 50% of the Fund’s assets.
The Madison Diversified Income Fund (Class A) returned 6.26% for the period, outperforming its blended index (50% Bank of America Merrill Lynch U.S. Corporate, Government and Mortgage Index and 50% S&P 500®) which returned 6.14%. The Fund’s designated Morningstar peer group, the Moderate Allocation category, averaged a 7.52% return for the period. For more up-to-date information about the most recent performance information of the Fund, including a quarterly investment letter from the portfolio managers, please visit www.madisonfunds.com.
| PORTFOLIO ALLOCATION AS A PERCENTAGE OF NET ASSETS AS OF 4/30/17 |
| |
| Asset Backed Securities | | 1.2 | % |
| Collateralized Mortgage Obligations | | 1.1 | % |
| Commercial Mortgage-Backed Securities | | 0.6 | % |
| Common Stocks | | 58.8 | % |
| Corporate Notes and Bonds | | 13.3 | % |
| Long Term Municipal Bonds | | 2.4 | % |
| Mortgage Backed Securities | | 8.8 | % |
| Short-Term Investments | | 2.8 | % |
| U.S. Government and Agency Obligations | | 10.4 | % |
| Net Other Assets and Liabilities | | 0.6 | % |
| |
| Madison Funds | Review of Period (unaudited) - continued | April 30, 2017 |
| TOP TEN HOLDINGS AS A PERCENTAGE OF NET ASSETS AS OF 4/30/17 |
| |
| Microsoft Corp. | | 2.1 | % |
| US Bancorp | | 2.0 | % |
| Johnson & Johnson | | 1.9 | % |
| Cisco Systems Inc. | | 1.8 | % |
| United Technologies Corp. | | 1.8 | % |
| Exxon Mobil Corp. | | 1.7 | % |
| Carnival Corp. | | 1.7 | % |
| PNC Financial Services Group Inc./The | | 1.7 | % |
| CME Group Inc. | | 1.6 | % |
| Texas Instruments Inc. | | 1.5 | % |
| |
| MADISON COVERED CALL & EQUITY INCOME FUND |
| |
| INVESTMENT STRATEGY HIGHLIGHTS |
The Madison Covered Call & Equity Income Fund (formerly the Madison Equity Income Fund) invests, under normal market conditions, primarily in common stocks of large-and mid-capitalization companies that are, in the view of the Fund’s investment adviser, selling at a reasonable price in relation to their long-term earnings growth rates. The portfolio managers will allocate the Fund’s assets among stocks in sectors of the economy based upon their views on forward earnings growth rates, adjusted to reflect their views on economic and market conditions and sector risk factors.
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 extent of option writing activity will depend upon market conditions and the portfolio managers’ 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.
The Madison Covered Call & Equity Income Fund (Class Y) returned 4.79% for the period, trailing its covered call benchmark, the CBOE S&P 500 BuyWrite Index (BXM) which returned 7.50%. The Fund underperformed the Morningstar Option Writing category’s return of 4.88%. For more up-to-date information about the most recent performance information of the Fund, including a quarterly investment letter from the portfolio managers, please visit www.madisonfunds.com.
| SECTOR ALLOCATION AS A PERCENTAGE OF TOTAL INVESTMENTS AS OF 4/30/17 |
| |
| Consumer Discretionary | | 9.3 | % |
| Consumer Staples | | 4.2 | % |
| Energy | | 12.0 | % |
| Financials | | 6.0 | % |
| Health Care | | 12.1 | % |
| Industrials | | 4.8 | % |
| Information Technology | | 12.8 | % |
| Materials | | 3.5 | % |
| Real Estate | | 2.4 | % |
| Telecommunication Services | | 2.2 | % |
| Utilities | | 2.2 | % |
| Exchange Traded Funds | | 6.4 | % |
| U.S. Government and Agency Obligations | | 3.9 | % |
| Short-Term Investments | | 18.2 | % |
| |
| TOP TEN EQUITY HOLDINGS AS A PERCENTAGE OF NET ASSETS AS OF 4/30/17 |
| |
| FedEx Corp. | | 3.3 | % |
| General Motors Co. | | 3.0 | % |
| Baxter International Inc. | | 2.9 | % |
| Marathon Petroleum Corp. | | 2.7 | % |
| EI du Pont de Nemours & Co. | | 2.6 | % |
| Baker Hughes Inc. | | 2.6 | % |
| QUALCOMM Inc. | | 2.6 | % |
| Gilead Sciences Inc. | | 2.4 | % |
| Range Resources Corp. | | 2.3 | % |
| T-Mobile U.S. Inc. | | 2.3 | % |
| |
| MADISON DIVIDEND INCOME FUND |
| |
| INVESTMENT STRATEGY HIGHLIGHTS |
The Madison Dividend Income Fund invests 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 will be invested in dividend paying equity securities. The Fund typically owns 30-60 securities which generally have a dividend yield of at least the S&P 500’s average yield, a strong balance sheet, a dividend that has been maintained and likely to increase or trade on the high side of the company’s historical relative dividend yield, due to issues viewed by the adviser as temporary, among other characteristics. A key attraction for management is a company with a history of increasing dividend payments and a business model that supports the possibility of continuing these increases in the future.
The Madison Dividend Income Fund (Class Y) returned 11.53% for the period, underperforming its benchmark, the S&P 500® Index, which advanced 13.32%. This performance lagged its peer group, as the Morningstar Large Value category was up 12.09%. For more up-to-date information about the most recent performance information of the Fund, including a quarterly investment letter from the portfolio managers, please visit www.madisonfunds.com.
| SECTOR ALLOCATION AS A PERCENTAGE OF TOTAL INVESTMENTS AS OF 4/30/17 |
| |
| Consumer Discretionary | | 8.5 | % |
| Consumer Staples | | 7.7 | % |
| Energy | | 7.0 | % |
| Financials | | 16.5 | % |
| Health Care | | 13.2 | % |
| Industrials | | 17.5 | % |
| Information Technology | | 18.0 | % |
| Materials | | 3.8 | % |
| Telecommunication Services | | 2.5 | % |
| Utilities | | 3.2 | % |
| Money Market Funds | | 2.0 | % |
| Net Other Assets and Liabilities | | 0.1 | % |
| |
| TOP TEN HOLDINGS AS A PERCENTAGE OF NET ASSETS AS OF 4/30/17 |
| |
| Microsoft Corp. | | 3.4 | % |
| US Bancorp | | 3.4 | % |
| Johnson & Johnson | | 3.2 | % |
| Cisco Systems Inc. | | 3.1 | % |
| United Technologies Corp. | | 2.9 | % |
| Exxon Mobil Corp. | | 2.9 | % |
| PNC Financial Services Group Inc./The | | 2.7 | % |
| CME Group Inc. | | 2.6 | % |
| Praxair Inc. | | 2.6 | % |
| General Electric Co. | | 2.6 | % |
| |
| Madison Funds | Review of Period (unaudited) - continued | April 30, 2017 |
| MADISON LARGE CAP VALUE FUND |
| |
| INVESTMENT STRATEGY HIGHLIGHTS |
The Madison Large Cap Value Fund will, under normal market conditions, invest primarily in large cap stocks. The Fund follows a “value” approach, meaning the portfolio managers seek to invest in stocks at prices below their perceived intrinsic value as estimated based on fundamental analysis of the issuing company and its prospects. By investing in value stocks, the Fund attempts to limit the downside risk over time but may also produce smaller gains than other stock funds if their intrinsic values are not realized by the market or if growth-oriented investments are favored by investors. The Fund will diversify its holdings among various industries and among companies within those industries. The Fund typically sells a stock when the fundamental expectations for buying it no longer apply, the price exceeds its intrinsic value or other stocks appear more attractively priced relative to their intrinsic values. The Fund generally holds 25-60 individual securities in its portfolio at any given time.
The Madison Large Cap Value Fund (Class Y) returned 9.39% for the period, trailing its benchmark, the Russell 1000® Value Index, which was up 11.69%. The Fund also lagged its Morningstar peer group, Large Cap Value category, which showed a 12.09% return. For more up-to-date information about the most recent performance information of the Fund, including a quarterly investment letter from the portfolio managers, please visit www.madisonfunds.com.
| SECTOR ALLOCATION AS A PERCENTAGE OF TOTAL INVESTMENTS AS OF 4/30/17 |
| |
| Consumer Discretionary | | 6.2 | % |
| Energy | | 12.4 | % |
| Financials | | 24.1 | % |
| Health Care | | 4.8 | % |
| Industrials | | 14.5 | % |
| Information Technology | | 10.1 | % |
| Materials | | 8.9 | % |
| Real Estate | | 8.0 | % |
| Telecommunication Services | | 4.8 | % |
| Utilities | | 4.4 | % |
| Money Market Funds | | 1.5 | % |
| Net Other Assets and Liabilities | | 0.3 | % |
| |
| TOP TEN HOLDINGS AS A PERCENTAGE OF NET ASSETS AS OF 4/30/17 |
| |
| Dow Chemical Co./The | | 5.0 | % |
| FedEx Corp. | | 5.0 | % |
| Baxter International Inc. | | 4.8 | % |
| JPMorgan Chase & Co. | | 4.8 | % |
| T-Mobile U.S. Inc. | | 4.8 | % |
| Marathon Petroleum Corp. | | 4.7 | % |
| Bank of America Corp. | | 4.6 | % |
| Weyerhaeuser Co. | | 4.4 | % |
| NRG Energy Inc. | | 4.4 | % |
| Microsoft Corp. | | 4.2 | % |
| |
| MADISON INVESTORS FUND |
| |
| INVESTMENT STRATEGY HIGHLIGHTS |
The Madison Investors Fund invests primarily in the common stocks of established, high-quality growth companies. The Fund typically owns 25-40 securities which have demonstrated stable revenue and earnings growth patterns and high profitability metrics, and have maintained proportionately low levels of debt. A rigorous three-pronged review process is followed when evaluating companies. The business model, the management team and the valuation of each potential investment are considered. Management strives to purchase securities trading at a discount to their intrinsic value as determined by discounted cash flows. Management corroborates this valuation work with additional valuation methodologies. The Fund typically sells a stock when the valuation target the portfolio managers have set for the stock has been achieved, the fundamental business prospects for the company have materially changed, or the portfolio managers find a more attractive alternative.
The Madison Investors Fund (Class Y) returned 12.09% for the period, trailing its benchmark, the S&P 500® Index, which advanced 13.32%. This performance lagged its peer group, as the Morningstar Large Growth category returned 13.54%. For more up-to-date information about the most recent performance information of the Fund, including a quarterly investment letter from the portfolio managers, please visit www.madisonfunds.com.
| SECTOR ALLOCATION AS A PERCENTAGE OF TOTAL INVESTMENTS AS OF 4/30/17 |
| |
| Consumer Discretionary | | 11.3 | % |
| Consumer Staples | | 7.2 | % |
| Financials | | 17.4 | % |
| Health Care | | 15.3 | % |
| Industrials | | 5.5 | % |
| Information Technology | | 21.5 | % |
| Materials | | 9.2 | % |
| Real Estate | | 4.4 | % |
| Money Market Funds | | 7.9 | % |
| Net Other Assets and Liabilities | | 0.3 | % |
| |
| TOP TEN HOLDINGS AS A PERCENTAGE OF NET ASSETS AS OF 4/30/17 |
| |
| Berkshire Hathaway Inc., Class B | | 4.9 | % |
| Praxair Inc. | | 4.8 | % |
| US Bancorp | | 4.8 | % |
| Johnson & Johnson | | 4.6 | % |
| Brookfield Asset Management Inc., Class A | | 4.5 | % |
| Diageo PLC | | 4.4 | % |
| American Tower Corp. | | 4.4 | % |
| Oracle Corp. | | 4.4 | % |
| PPG Industries Inc. | | 4.4 | % |
| Danaher Corp. | | 4.1 | % |
| |
| MADISON MID CAP FUND |
| |
| INVESTMENT STRATEGY HIGHLIGHTS |
The Madison Mid Cap Fund invests generally in common stocks, securities convertible into common stocks and related equity securities of midsize companies and will, under normal market conditions, maintain at least 80% of its net assets in such mid-cap securities. The Fund seeks attractive long-term returns through bottom-up security selection based on fundamental analysis in a diversified portfolio of high-quality growth companies with attractive valuations. These will typically be industry leading companies in niches with strong growth prospects. The Fund’s portfolio managers believe in selecting stocks for the Fund that show steady, sustainable growth and reasonable valuation. The Fund generally holds 25-40 individual securities in its portfolio at any given time. Stocks are generally sold when target prices are reached, company fundamentals deteriorate or more attractive stocks are identified.
The Madison Mid Cap Fund (Class Y) returned 11.45% for the period, underperforming its benchmark Russell Midcap® Index’s 12.94% return. The Fund lagged its peer group, the Morningstar Mid-Cap Growth category, whose average return was 14.41%. For more up-to-date information about the most recent performance information of the Fund, including a quarterly investment letter from the portfolio managers, please visit www.madisonfunds.com.
| SECTOR ALLOCATION AS A PERCENTAGE OF TOTAL INVESTMENTS AS OF 4/30/17 |
| |
| Consumer Discretionary | | 23.2 | % |
| Consumer Staples | | 1.2 | % |
| Energy | | 1.2 | % |
| Financials | | 21.1 | % |
| Health Care | | 9.7 | % |
| Industrials | | 16.1 | % |
| Information Technology | | 6.4 | % |
| Materials | | 6.8 | % |
| Real Estate | | 4.5 | % |
| Money Market Funds | | 7.9 | % |
| Net Other Assets and Liabilities | | 1.9 | % |
| |
| Madison Funds | Review of Period (unaudited) - continued | April 30, 2017 |
| TOP TEN HOLDINGS AS A PERCENTAGE OF NET ASSETS AS OF 4/30/17 |
| |
| Markel Corp. | | 4.8 | % |
| Liberty Broadband Corp., Class C | | 4.6 | % |
| Copart Inc. | | 4.2 | % |
| CDW Corp. | | 4.1 | % |
| Brookfield Asset Management Inc., Class A | | 4.0 | % |
| Liberty Global PLC | | 4.0 | % |
| DaVita Inc. | | 3.8 | % |
| Ross Stores Inc. | | 3.7 | % |
| Expeditors International of Washington Inc. | | 3.6 | % |
| Brown & Brown Inc. | | 3.6 | % |
| |
| MADISON SMALL CAP FUND |
| |
| INVESTMENT STRATEGY HIGHLIGHTS |
The Madison Small Cap Fund invests primarily in a diversified mix of common stocks of small cap U.S. companies that are believed to be undervalued by various measures and offer sound prospects for capital appreciation. Under normal market conditions, the Fund will maintain at least 80% of its net assets in such small cap securities. The portfolio managers employ a value-oriented investment approach in selecting stocks, using proprietary fundamental research to identify securities of companies they believe have attractive valuations. The portfolio managers focus on companies with a record of above average rates of profitability that sell at a discount relative to the overall small cap market. Through fundamental research, the portfolio managers seek to identify those companies which possess one or more of the following characteristics: sustainable competitive advantages within a market niche; strong profitability and free cash flows; strong market share positions and trends; quality of and share ownership by management; and financial structures that are more conservative than the relevant industry average. Under normal circumstances, the Fund will generally hold 60-90 individual securities in its portfolio at any given time.
The Madison Small Cap Fund (Class Y) returned 17.71% for the period, underperforming both the Russell 2000® Index’s 18.37% and the Russell 2000® Value Index’s 18.26% return. The Fund outperformed its peer group average, as the Morningstar Small Blend category averaged a return of 16.86%. For more up-to-date information about the most recent performance information of the Fund, including a quarterly investment letter from the portfolio managers, please visit www.madisonfunds.com.
| SECTOR ALLOCATION AS A PERCENTAGE OF TOTAL INVESTMENTS AS OF 4/30/17 |
| |
| Consumer Discretionary | | 3.7 | % |
| Consumer Staples | | 4.5 | % |
| Energy | | 4.4 | % |
| Financials | | 19.8 | % |
| Health Care | | 8.1 | % |
| Industrials† | | 32.1 | % |
| Information Technology | | 8.7 | % |
| Materials | | 7.7 | % |
| Real Estate | | 5.4 | % |
| Utilities | | 1.9 | % |
| Money Market Funds | | 3.6 | % |
| Net Other Assets and Liabilities | | 0.1 | % |
| |
| †Industrials includes securities in the following industries: Aerospace & Defense, Air Freight & Logistics, Building Products, Commercial Services & Supplies, Construction & Engineering, Electrical Equipment, Machinery, Professional Services and Trading Companies & Distributors |
| |
| |
| TOP TEN HOLDINGS AS A PERCENTAGE OF NET ASSETS AS OF 4/30/17 |
| |
| Belden Inc. | | 2.6 | % |
| Mueller Industries Inc. | | 2.5 | % |
| International Bancshares Corp. | | 2.4 | % |
| Albany International Corp. | | 2.4 | % |
| Hancock Holding Co. | | 2.3 | % |
| First Midwest Bancorp Inc. | | 2.2 | % |
| Sensient Technologies Corp. | | 2.2 | % |
| Cubic Corp. | | 2.2 | % |
| ESCO Technologies Inc. | | 2.1 | % |
| Greif Inc. | | 2.1 | % |
| |
| MADISON INTERNATIONAL STOCK FUND |
| |
| INVESTMENT STRATEGY HIGHLIGHTS |
The Madison International Stock Fund will invest, under normal market conditions, at least 80% of its net assets in the stock of foreign companies. Typically, a majority of the Fund’s assets are invested in relatively large capitalization stocks of companies located or operating in developed countries. The Fund may also invest up to 30% of its assets in securities of companies whose principal business activities are located in emerging market countries. The portfolio managers typically maintain this segment of the Fund’s portfolio in such stocks which it believes have a low market price relative to their perceived value based on fundamental analysis of the issuing company and its prospects. The Fund may also invest in foreign debt and other income bearing securities at times when it believes that income bearing securities have greater capital appreciation potential than equity securities. The Fund usually holds securities of issuers located in at least three countries other than the U.S. and generally holds 60-80 individual securities in its portfolio at any given time.
The Madison International Stock Fund (Class A at NAV) returned 7.87% for the period, underperforming the 11.47% return of the MSCI EAFE Index (net). The Fund trailed its peer group, with the Morningstar Foreign Large Blend Category averaging a 10.68% return. For more up-to-date information about the most recent performance information of the Fund, including a quarterly investment letter from the portfolio managers, please visit www.madisonfunds.com.
| GEOGRAPHICAL ALLOCATION AS A PERCENTAGE OF TOTAL INVESTMENTS AS OF 4/30/17 |
| |
| United Kingdom | | 22.5 | % |
| Japan | | 16.2 | % |
| France | | 10.9 | % |
| United States | | 6.3 | % |
| Jersey | | 5.0 | % |
| Sweden | | 4.8 | % |
| Netherlands | | 4.6 | % |
| Canada | | 4.3 | % |
| Switzerland | | 3.9 | % |
| Belgium | | 2.6 | % |
| Germany | | 2.6 | % |
| Norway | | 2.4 | % |
| Ireland | | 2.3 | % |
| Denmark | | 1.9 | % |
| Taiwan | | 1.9 | % |
| Italy | | 1.6 | % |
| Finland | | 1.4 | % |
| Brazil | | 1.1 | % |
| Singapore | | 1.0 | % |
| Australia | | 0.9 | % |
| Spain | | 0.9 | % |
| Turkey | | 0.7 | % |
| Luxembourg | | 0.6 | % |
| Philippines | | 0.1 | % |
| Other Net Assets and Liabilities | | (0.5 | )% |
| |
| TOP TEN HOLDINGS AS A PERCENTAGE OF NET ASSETS AS OF 4/30/17 |
| |
| Prudential PLC | | 3.4 | % |
| British American Tobacco PLC | | 3.1 | % |
| Novartis AG | | 2.9 | % |
| Valeo S.A. | | 2.9 | % |
| Shire PLC | | 2.8 | % |
| Daiwa House Industry Co. Ltd. | | 2.6 | % |
| SAP SE | | 2.6 | % |
| Royal Dutch Shell PLC | | 2.4 | % |
| Sony Corp. | | 2.4 | % |
| Vinci S.A. | | 2.3 | % |
| |
| Madison Funds | Review of Period (unaudited) - concluded | April 30, 2017 |
| |
| |
| Notes to Review of Period |
BENCHMARK DESCRIPTIONS
Allocation Fund Indexes*
The Conservative Allocation Fund Custom Index consists of 24.5% Russell 3000 Index, 10.5% MSCI ACWI ex-US Index and 65% Bloomberg Barclays US Aggregate Bond Index. See market index descriptions below.
The Moderate Allocation Fund Custom Index consists of 42% Russell 3000 Index, 18% MSCI ACWI ex-US Index and 40% Bloomberg Barclays US Aggregate Bond Index. See market index descriptions below.
The Aggressive Allocation Fund Custom Index consists of 56% Russell 3000 Index, 24% MSCI ACWI ex-US Index and 20% Bloomberg Barclays US Aggregate Bond Index. See market index descriptions below.
Hybrid Fund Indexes*
The Custom Blended Index consists of 50% S&P 500® Index and 50% Bank of America Merrill Lynch U.S. Corporate, Government & Mortgage Index. See market index descriptions below.
Market Indexes
The CBOE S&P 500 BuyWrite IndexSM (BXM) is a benchmark index designed to track the performance of a hypothetical buy-write strategy (i.e., holding a long position in and selling covered call options on that position) on the S&P 500® Index.
The Bank of America Merrill Lynch 1-22 year Municipal Index tracks the performance of U.S. dollar denominated investment grade tax-exempt debt publicly issued by U.S. states and territories, their political subdivisions, in the U.S. domestic market, with a remaining term to final maturity less than 22 years.
The Bank of America Merrill Lynch U.S. Corporate, Government & Mortgage Index is a broad-based measure of the total rate of return performance of the U.S. investment-grade bond markets. The index is a capitalization-weighted aggregation of outstanding U.S. treasury, agency and supranational mortgage pass-through, and investment-grade corporate bonds meeting specified selection criteria.
The Bank of America Merrill Lynch U.S. High Yield Master II Constrained Index tracks the performance of below investment grade U.S. dollar denominated corporate bonds publicly issued in the U.S. domestic market, but limits any individual issuer to a maximum weighting of 2%.
The Bloomberg Barclays U.S. Corporate Bond Index measures the investment grade, fixed-rate, taxable corporate bond market. It includes USD denominated securities publicly issued by U.S. financial issuers.
The Bloomberg Barclays U.S. Credit Bond Index is an unmanaged, market capitalization weighted index that covers the U.S. dollar denominated fixed-rate, taxable bond market, with maturities of one year or more.
The Bloomberg Barclays U.S. Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, U.S. dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, mortgage backed-securities, asset-backed securities and corporate securities, with maturities greater than one year.
The Bloomberg Barclays U.S. Intermediate Government Credit A+ Bond Index measures the performance of U.S. dollar denominated U.S. Treasuries, government related and investment grade U.S. corporate securities with quality ratings of A3/A-or better and maturities between one and 10 years.
THE MSCI ACWI ex-U.S. Index is a market-capitalization-weighted index maintained by Morgan Stanley Capital International (MSCI) and designed to provide a broad measure of stock performance throughout the world, with the exception of U.S.-based companies. The Index includes both developed and emerging markets.
The MSCI EAFE (Europe, Australasia & Far East) Index (net) is a free-float adjusted market capitalization index that is designed to measure developed market equity performance, excluding the U.S. and Canada. The MSCI EAFE Index (net) is calculated on a total return basis with dividends reinvested after the deduction of withholding taxes.
The Russell 1000® Value Index is a large-cap market index which measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.
The Russell 2000® Index is a small-cap market index which measures the performance of the smallest 2,000 companies in the Russell 3000® Index.
The Russell 2000® Value Index measures the performance of small-cap value segment of the U.S. equity universe. It includes those Russell 2000® Index companies with lower price-to-book ratios and lower forecasted growth values.
The Russell 3000® Index measures the performance of the 3,000 largest U.S. companies based on total market capitalization, which represents 98% of the investable U.S. equity market.
The Russell Midcap® Index is a mid-cap market index which measures the performance of the mid-cap segment of the U.S. equity universe.
The S&P 500® Index is a large-cap market index which measures the performance of a representative sample of 500 leading companies in leading industries in the U.S.
*The Custom Indexes are calculated using a monthly re-balancing frequency (i.e., rebalanced back to original constituent weight every calendar month-end).
© 2016 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
Russell Investment Group is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Russell Investment Group.
Past performance is no guarantee of future results.
|
| Madison Funds | April 30, 2017 |
| |
| Madison Conservative Allocation Fund Portfolio of Investments (unaudited) |
| | | | | | | |
| | | Shares | | Value (Note 2) | |
| INVESTMENT COMPANIES - 100.4% | | | | | | |
| Alternative Funds - 2.2% | | | | | | |
| SPDR Gold Shares* | | 13,325 | | $ | 1,609,261 | |
| | |
| Bond Funds - 60.0% | | | | | | |
| Baird Aggregate Bond Fund Institutional | | | | | | |
| Shares | | 372,067 | | | 4,025,769 | |
| iShares 20+ Year Treasury Bond ETF | | 13,428 | | | 1,642,916 | |
| iShares 7-10 Year Treasury Bond ETF | | 61,001 | | | 6,502,706 | |
| iShares TIPS Bond Fund ETF | | 6,264 | | | 720,423 | |
| Madison Core Bond Fund Class Y (A) | | 1,515,887 | | | 15,113,397 | |
| Madison Corporate Bond Fund Class Y (A) | | 446,801 | | | 5,138,207 | |
| Metropolitan West Total Return Bond | | | | | | |
| Fund Class I | | 229,305 | | | 2,437,507 | |
| RidgeWorth Seix Floating Rate High | | | | | | |
| Income Fund Institutional Shares | | 663,062 | | | 5,815,054 | |
| Vanguard Short-Term Corporate Bond ETF | | 28,110 | | | 2,246,551 | |
| | | | | | 43,642,530 | |
| Foreign Stock Funds - 11.7% | | | | | | |
| iShares MSCI Eurozone ETF | | 19,304 | | | 757,489 | |
| Vanguard FTSE All-World ex-U.S. ETF | | 101,615 | | | 4,961,861 | |
| Vanguard FTSE Europe ETF | | 39,434 | | | 2,112,874 | |
| WisdomTree Japan Hedged Equity Fund | | 12,992 | | | 663,501 | |
| | | | | | 8,495,725 | |
| Money Market Funds - 3.8% | | | | | | |
| State Street Institutional U.S. Government | | | | | | |
| Money Market Fund, 0.68%, Premier Class | | 2,799,359 | | | 2,799,359 | |
| | | | | | | |
| Stock Funds - 22.7% | | | | | | |
| iShares Core S&P Mid-Cap ETF | | 10,903 | | | 1,881,749 | |
| Madison Dividend Income Fund Class Y (A) | | 155,123 | | | 3,749,323 | |
| Madison Investors Fund Class Y (A) | | 184,738 | | | 3,933,077 | |
| Madison Mid Cap Fund Class Y (A) | | 122,137 | | | 1,127,326 | |
| SPDR S&P Regional Banking ETF | | 3,347 | | | 180,905 | |
| Vanguard Financials ETF | | 6,078 | | | 365,045 | |
| Vanguard Growth ETF | | 28,819 | | | 3,585,948 | |
| Vanguard Health Care ETF | | 4,206 | | | 589,387 | |
| Vanguard Information Technology ETF | | 4,032 | | | 559,642 | |
| Vanguard Value ETF | | 5,695 | | | 542,961 | |
| | | | | | 16,515,363 | |
| TOTAL INVESTMENTS - 100.4% | | | | | | |
| (Cost $70,773,993**) | | | | | 73,062,238 | |
| NET OTHER ASSETS AND LIABILITIES - (0.4%) | | | (317,438 | ) |
| TOTAL NET ASSETS - 100.0% | | | | $ | 72,744,800 | |
| | |
| * | | Non-income producing. |
| ** | | Aggregate cost for Federal tax purposes was $70,773,993. |
| (A) | | Affiliated Company (see Note 12). |
| ETF | | Exchange Traded Fund. |
|
| Madison Moderate Allocation Fund Portfolio of Investments (unaudited) |
| | | Shares | | Value (Note 2) | |
| INVESTMENT COMPANIES - 100.3% | | | | | | |
| Alternative Funds - 2.2% | | | | | | |
| SPDR Gold Shares * | | 26,090 | | $ | 3,150,890 | |
| | |
| Bond Funds - 33.3% | | | | | | |
| Baird Aggregate Bond Fund Institutional | | | | | | |
| Shares | | 548,088 | | | 5,930,317 | |
| iShares 20+ Year Treasury Bond ETF | | 23,633 | | | 2,891,498 | |
| iShares 7-10 Year Treasury Bond ETF | | 66,521 | | | 7,091,139 | |
| iShares Intermediate Credit Bond ETF | | 32,483 | | | 3,560,137 | |
| iShares TIPS Bond Fund ETF | | 6,202 | | | 713,292 | |
| Madison Core Bond Fund Class Y (A) | | 2,172,663 | | | 21,661,451 | |
| RidgeWorth Seix Floating Rate High | | | | | | |
| Income Fund Institutional Shares | | 695,405 | | | 6,098,704 | |
| | | | | | 47,946,538 | |
| Foreign Stock Funds - 19.9% | | | | | | |
| iShares MSCI Eurozone ETF | | 57,339 | | | 2,249,982 | |
| Vanguard FTSE All-World ex-U.S. ETF | | 318,241 | | | 15,539,708 | |
| Vanguard FTSE Emerging Markets ETF | | 9,200 | | | 371,128 | |
| Vanguard FTSE Europe ETF | | 146,204 | | | 7,833,610 | |
| WisdomTree Japan Hedged Equity Fund | | 52,480 | | | 2,680,154 | |
| | | | | | 28,674,582 | |
| Money Market Funds - 4.1% | | | | | | |
| State Street Institutional U.S. Government | | | | | | |
| Money Market Fund, 0.68%, Premier Class | | 5,851,831 | | | 5,851,831 | |
| | |
| Stock Funds - 40.8% | | | | | | |
| Energy Select Sector SPDR Fund | | 9,839 | | | 667,478 | |
| iShares Core S&P Mid-Cap ETF | | 42,523 | | | 7,339,045 | |
| Madison Dividend Income Fund Class Y (A) | | 589,069 | | | 14,237,809 | |
| Madison Investors Fund Class Y (A) | | 676,338 | | | 14,399,230 | |
| Madison Large Cap Value Fund Class Y (A) | | 121,435 | | | 1,769,308 | |
| Madison Mid Cap Fund Class Y (A) | | 355,216 | | | 3,278,642 | |
| SPDR S&P Regional Banking ETF | | 6,627 | | | 358,189 | |
| Vanguard Financials ETF | | 12,035 | | | 722,822 | |
| Vanguard Growth ETF | | 77,786 | | | 9,678,912 | |
| Vanguard Health Care ETF | | 20,692 | | | 2,899,570 | |
| Vanguard Information Technology ETF | | 21,738 | | | 3,017,234 | |
| Vanguard Value ETF | | 3,725 | | | 355,142 | |
| | | | | | 58,723,381 | |
| TOTAL INVESTMENTS - 100.3% | | | | | | |
| (Cost $133,210,714**) | | | | | 144,347,222 | |
| NET OTHER ASSETS AND LIABILITIES - (0.3%) | | | (452,543 | ) |
| TOTAL NET ASSETS - 100.0% | | | | $ | 143,894,679 | |
| | |
| * | | Non-income producing. |
| ** | | Aggregate cost for Federal tax purposes was $133,210,714. |
| (A) | | Affiliated Company (see Note 12). |
| ETF | | Exchange Traded Fund. |
|
| Madison Aggressive Allocation Fund Portfolio of Investments (unaudited) |
| | | Shares | | Value (Note 2) | |
| INVESTMENT COMPANIES - 99.8% | | | | | | |
| Alternative Funds - 2.2% | | | | | | |
| SPDR Gold Shares* | | 11,205 | | $ | 1,353,228 | |
| | |
| Bond Funds - 12.5% | | | | | | |
| iShares 20+ Year Treasury Bond ETF | | 5,134 | | | 628,145 | |
| iShares 7-10 Year Treasury Bond ETF | | 7,242 | | | 771,997 | |
| iShares Intermediate Credit Bond ETF | | 8,442 | | | 925,243 | |
| Madison Core Bond Fund Class Y (A) | | 551,560 | | | 5,499,057 | |
| | | | | | 7,824,442 | |
| Foreign Stock Funds - 26.7% | | | | | | |
| iShares MSCI Eurozone ETF | | 32,968 | | | 1,293,664 | |
| Vanguard FTSE All-World ex-U.S. ETF | | 172,854 | | | 8,440,461 | |
| Vanguard FTSE Emerging Markets ETF | | 12,044 | | | 485,855 | |
| Vanguard FTSE Europe ETF | | 88,131 | | | 4,722,059 | |
| WisdomTree Japan Hedged Equity Fund | | 33,810 | | | 1,726,677 | |
| | | | | | 16,668,716 | |
| Money Market Funds - 3.6% | | | | | | |
| State Street Institutional U.S. Government | | | | | | |
| Money Market Fund, 0.68%, Premier Class | | 2,272,434 | | | 2,272,434 | |
| | | | | | | |
| Stock Funds - 54.8% | | | | | | |
| Energy Select Sector SPDR Fund | | 6,439 | | | 436,822 | |
| iShares Core S&P Mid-Cap ETF | | 29,239 | | | 5,046,359 | |
| Madison Dividend Income Fund Class Y (A) | | 308,663 | | | 7,460,391 | |
| Madison Investors Fund Class Y (A) | | 354,877 | | | 7,555,336 | |
| Madison Large Cap Value Fund Class Y (A) | | 93,456 | | | 1,361,653 | |
| Madison Mid Cap Fund Class Y (A) | | 248,099 | | | 2,289,950 | |
| SPDR S&P Regional Banking ETF | | 5,758 | | | 311,220 | |
| Vanguard Financials ETF | | 5,190 | | | 311,711 | |
| Vanguard Growth ETF | | 44,953 | | | 5,593,502 | |
| Vanguard Health Care ETF | | 12,856 | | | 1,801,511 | |
| Vanguard Information Technology ETF | | 13,719 | | | 1,904,197 | |
| Vanguard Value ETF | | 1,620 | | | 154,451 | |
| | | | | | 34,227,103 | |
| TOTAL INVESTMENTS - 99.8% | | | | | | |
| (Cost $55,656,047**) | | | | | 62,345,923 | |
| NET OTHER ASSETS AND LIABILITIES - 0.2% | | | 148,108 | |
| TOTAL NET ASSETS - 100.0% | | | | $ | 62,494,031 | |
| | |
| * | | Non-income producing. |
| ** | | Aggregate cost for Federal tax purposes was $55,656,047. |
| (A) | | Affiliated Company (see Note 12). |
| ETF | | Exchange Traded Fund. |
See accompanying Notes to Financial Statements.
10
|
| Madison Funds | April 30, 2017 |
| | Madison Government Money Market Fund Portfolio of Investments (unaudited) |
| | Par Value | | Value (Note 2) | |
| U.S. GOVERNMENT AND AGENCY | | | | | | |
| OBLIGATIONS - 93.5% | | | | | | |
| Fannie Mae - 23.3% | | | | | | |
| 5.000%, 5/11/17 | $ | 600,000 | | $ | 600,753 | |
| 0.574%, 5/17/17 (A) | | 400,000 | | | 399,900 | |
| 5.375%, 6/12/17 | | 700,000 | | | 703,610 | |
| 0.737%, 7/3/17 (A) | | 1,250,000 | | | 1,248,472 | |
| 0.823%, 7/19/17 (A) | | 800,000 | | | 798,578 | |
| | | | | | 3,751,313 | |
| Federal Farm Credit Bank - 3.1% | | | | | | |
| 0.792%, 5/30/17 (A) | | 500,000 | | | 499,686 | |
| | |
| Federal Home Loan Bank - 38.6% | | | | | | |
| 0.543%, 5/5/17 (A) | | 250,000 | | | 249,985 | |
| 0.548%, 5/24/17 (A) | | 500,000 | | | 499,827 | |
| 0.558%, 5/26/17 (A) | | 600,000 | | | 599,771 | |
| 0.650%, 6/9/17 (A) | | 500,000 | | | 499,653 | |
| 0.793%, 6/20/17 (A) | | 100,000 | | | 99,892 | |
| 0.803%, 6/23/17 (A) | | 100,000 | | | 99,884 | |
| 0.792%, 6/26/17 (A) | | 500,000 | | | 499,393 | |
| 0.813%, 7/5/17 (A) | | 800,000 | | | 798,844 | |
| 0.823%, 7/12/17 (A) | | 595,000 | | | 594,036 | |
| 0.810%, 7/14/17 (A) | | 800,000 | | | 798,699 | |
| 0.859%, 7/19/17 (A) | | 700,000 | | | 698,702 | |
| 0.833%, 7/21/17 (A) | | 200,000 | | | 199,631 | |
| 0.850%, 7/28/17 (A) | | 100,000 | | | 99,796 | |
| 0.874%, 8/16/17 (A) | | 475,000 | | | 473,786 | |
| | | | | | 6,211,899 | |
| Freddie Mac - 18.3% | | | | | | |
| 0.508%, 5/3/17 (A) | | 150,000 | | | 149,996 | |
| 0.543%, 5/18/17 (A) | | 750,000 | | | 749,811 | |
| 0.579%, 5/22/17 (A) | | 600,000 | | | 599,800 | |
| 0.533%, 6/1/17 (A) | | 800,000 | | | 799,638 | |
| 0.782%, 6/21/17 (A) | | 244,000 | | | 243,734 | |
| 0.782%, 7/3/17 (A) | | 400,000 | | | 399,461 | |
| | | | | | 2,942,440 | |
| U.S. Treasury Notes - 10.2% | | | | | | |
| 0.875%, 5/15/17 | | 900,000 | | | 900,117 | |
| 2.750%, 5/31/17 | | 250,000 | | | 250,457 | |
| 0.875%, 6/15/17 | | 500,000 | | | 500,203 | |
| | | | | | 1,650,777 | |
| Total U.S. Government and Agency | | | | | | |
| Obligations (Cost $15,056,115) | | | | | 15,056,115 | |
| | | Shares | | | | |
| INVESTMENT COMPANIES - 3.6% | | | | | | |
| State Street Institutional U.S. Government | | | | | | |
| Money Market Fund, 0.68%, Premier Class | | 584,973 | | | 584,973 | |
| Total Investment Companies | | | | | | |
| (Cost $584,973) | | | | | 584,973 | |
| | | | | | | |
| TOTAL INVESTMENTS - 97.1% | | | | | | |
| (Cost $15,641,088**) | | | | | 15,641,088 | |
| NET OTHER ASSETS AND LIABILITIES - 2.9% | | | 469,324 | |
| |
| TOTAL NET ASSETS - 100.0% | | | | $ | 16,110,412 | |
| | |
| ** | | Aggregate cost for Federal tax purposes was $15,641,088. |
| (A) | | Rate noted represents annualized yield at time of purchase. |
|
| Madison Tax-Free Virginia Fund Portfolio of Investments (unaudited) |
| | Par Value | | Value (Note 2) | |
| MUNICIPAL BONDS - 98.1% | | | | | | |
| Airport - 1.0% | | | | | | |
| Metropolitan Washington Airports | | | | | | |
| Authority Revenue, Series B, (BHAC-CR), | | | | | | |
| 3.75%, 10/1/18 | $ | 210,000 | | $ | 218,312 | |
| | |
| Development - 6.5% | | | | | | |
| Fairfax County Economic Development | | | | | | |
| Authority, Series A, 5%, 10/1/26 | | 150,000 | | | 179,253 | |
| Norfolk Economic Development Authority, | | | | | | |
| 5%, 11/1/29 | | 480,000 | | | 543,091 | |
| Virginia Housing Development Authority, | | | | | | |
| Series C, 1.5%, 4/1/19 | | 200,000 | | | 200,658 | |
| Wise County Industrial Development | | | | | | |
| Authority Revenue, Series A (A), 1.875%, | | | | | | |
| 11/1/40 | | 500,000 | | | 500,370 | |
| | | | | | 1,423,372 | |
| Education - 13.6% | | | | | | |
| Henrico County Economic Development | | | | | | |
| Authority, 4%, 4/15/42 | | 220,000 | | | 222,858 | |
| University of Virginia, (Prerefunded | | | | | | |
| 6/1/18 @ $100), 5%, 6/1/40 | | 255,000 | | | 265,792 | |
| Virginia College Building Authority, Series | | | | | | |
| E, (ST APPROP), 5%, 2/1/23 | | 500,000 | | | 592,330 | |
| Virginia College Building Authority, | | | | | | |
| (Prerefunded 9/1/18 @ $100), (ST | | | | | | |
| APPROP), 5%, 9/1/26 | | 140,000 | | | 147,423 | |
| Virginia College Building Authority, Series | | | | | | |
| A, (Prerefunded 2/1/19 @ $100), (ST | | | | | | |
| APPROP), 5%, 2/1/29 | | 375,000 | | | 400,736 | |
| Virginia Commonwealth University, Series | | | | | | |
| A, 5%, 5/1/26 | | 385,000 | | | 445,464 | |
| Virginia Public School Authority, 5%, | | | | | | |
| 12/1/18 | | 100,000 | | | 106,278 | |
| Virginia Public School Authority, Series | | | | | | |
| A, (Prerefunded 8/1/18 @ $100), (ST | | | | | | |
| APPROP), 5%, 8/1/27 | | 350,000 | | | 367,444 | |
| Virginia Public School Authority, Series C, | | | | | | |
| (ST AID WITHHLDG), 3%, 8/1/33 | | 450,000 | | | 438,097 | |
| | | | | | 2,986,422 | |
| Facilities - 4.0% | | | | | | |
| New River Valley Regional Jail Authority, | | | | | | |
| 5%, 10/1/25 | | 100,000 | | | 119,610 | |
| Stafford County & Staunton Industrial | | | | | | |
| Development Authority, Series B, (NATL- | | | | | | |
| RE), 4.5%, 8/1/25 | | 50,000 | | | 50,066 | |
| Virginia Public Building Authority, Series | | | | | | |
| B, (Prerefunded 8/1/18 @ $100), 5.25%, | | | | | | |
| 8/1/23 | | 200,000 | | | 210,586 | |
| Western Regional Jail Authority, 3.125%, | | | | | | |
| 12/1/29 | | 500,000 | | | 501,300 | |
| | | | | | 881,562 | |
| General - 11.2% | | | | | | |
| Fairfax County Economic Development | | | | | | |
| Authority, 4.25%, 8/1/29 | | 340,000 | | | 362,362 | |
| Loudoun County Economic Development | | | | | | |
| Authority Revenue, 3%, 12/1/29 | | 535,000 | | | 533,882 | |
| Northern Virginia Transportation | | | | | | |
| Authority, 5%, 6/1/30 | | 780,000 | | | 916,266 | |
| Puerto Rico Public Finance Corp, Series | | | | | | |
| E, (Escrowed To Maturity) (AMBAC) *, | | | | | | |
| 5.5%, 8/1/27 | | 100,000 | | | 123,496 | |
| Territory of Guam, Series A, 5%, 1/1/26 | | 150,000 | | | 159,750 | |
| Virgin Islands Public Finance Authority, | | | | | | |
| (NATL-RE), 5%, 10/1/23 | | 100,000 | | | 104,533 | |
| Virginia Beach Development Authority, | | | | | | |
| Series A, 3.5%, 5/1/30 | | 250,000 | | | 256,720 | |
| | | | | | 2,457,009 | |
| General Obligation - 26.8% | | | | | | |
| City of Danville VA, Series A, (ST AID | | | | | | |
| WITHHLDG), 5%, 8/1/23 | | 190,000 | | | 226,621 | |
| City of Fredericksburg VA, Series A, | | | | | | |
| 3.625%, 7/15/30 | | 400,000 | | | 409,404 | |
| City of Hampton VA, Series A, 5%, 1/15/21 | | 250,000 | | | 265,935 | |
| City of Manassas VA, (ST AID WITHHLDG), | | | | | | |
| 3%, 7/1/27 | | 500,000 | | | 529,180 | |
| City of Norfolk VA, Series A (Prerefunded | | | | | | |
| 11/1/19 @ $100), 4.125%, 11/1/27 | | 75,000 | | | 80,529 | |
| City of Portsmouth VA, Series A, (ST AID | | | | | | |
| WITHHLDG), 5%, 2/1/31 | | 635,000 | | | 733,400 | |
| City of Richmond VA, Series C, (ST AID | | | | | | |
| WITHHLDG), 5%, 7/15/22 | | 100,000 | | | 111,392 | |
| City of Roanoke VA, Series A, (Prerefunded | | | | | | |
| 2/1/20 @ $100), (ST AID WITHHLDG), | | | | | | |
| 5%, 2/1/25 | | 230,000 | | | 253,918 | |
| City of Virginia Beach VA, Series A, 4%, | | | | | | |
| 8/1/22 | | 300,000 | | | 337,362 | |
| Commonwealth of Virginia, Series B | | | | | | |
| (Prerefunded 6/1/18 @ $100), 5%, 6/1/21 | | 175,000 | | | 182,696 | |
| Commonwealth of Virginia, Series A, | | | | | | |
| 5%, 6/1/23 | | 500,000 | | | 598,400 | |
| Commonwealth of Virginia, Series B | | | | | | |
| (Prerefunded 6/1/19 @ $100), 5%, 6/1/27 | | 150,000 | | | 162,275 | |
| County of Arlington VA, Series B, (ST AID | | | | | | |
| WITHHLDG), 5%, 8/15/27 | | 175,000 | | | 210,150 | |
| County of Fairfax VA, Series B, (ST AID | | | | | | |
| WITHHLDG), 4%, 10/1/22 | | 250,000 | | | 281,810 | |
| County of Fairfax VA, Series A, (ST AID | | | | | | |
| WITHHLDG), 5%, 10/1/26 | | 410,000 | | | 510,257 | |
| County of Henrico VA, Series A, | | | | | | |
| (Prerefunded 12/1/18 @ $100), 5%, | | | | | | |
| 12/1/24 | | 200,000 | | | 212,686 | |
| County of Henrico VA, 5%, 7/15/25 | | 150,000 | | | 167,287 | |
| County of Prince William VA, (ST AID | | | | | | |
| WITHHLDG), 5%, 8/1/21 | | 105,000 | | | 120,662 | |
| County of Spotsylvania VA, (ST AID | | | | | | |
| WITHHLDG), 5%, 1/15/24 | | 200,000 | | | 241,200 | |
| Town of Leesburg VA, (ST AID WITHHLDG), | | | | | | |
| 5%, 1/15/25 | | 90,000 | | | 109,248 | |
| Town of Leesburg VA, Series A | | | | | | |
| (Prerefunded 1/15/21 @ $100), 5%, | | | | | | |
| 1/15/41 | | 135,000 | | | 153,352 | |
| | | | | | 5,897,764 | |
| Medical - 7.1% | | | | | | |
| Fredericksburg Economic Development | | | | | | |
| Authority, 5.25%, 6/15/18 | | 250,000 | | | 258,527 | |
| Norfolk Economic Development Authority, | | | | | | |
| Series B, 5%, 11/1/36 | | 480,000 | | | 539,674 | |
See accompanying Notes to Financial Statements.
11
| |
| Madison Funds | April 30, 2017 |
| |
| Madison Tax-Free Virginia Fund Portfolio of Investments (unaudited) - continued |
| | Par Value | | Value (Note 2) | |
| MUNICIPAL BONDS - continued | | | | | | |
| Medical - continued | | | | | | |
| Roanoke Economic Development | | | | | | |
| Authority, Series B, (Escrowed To Maturity) | | | | | | |
| (NATL-RE), 6.125%, 7/1/17 | $ | 135,000 | | $ | 136,142 | |
| Stafford County Economic Development | | | | | | |
| Authority Revenue, 5%, 6/15/25 | | 260,000 | | | 302,289 | |
| Virginia Small Business Financing | | | | | | |
| Authority, 5%, 11/1/40 | | 300,000 | | | 323,670 | |
| | | | | | 1,560,302 | |
| Multifamily Housing - 6.0% | | | | | | |
| Fairfax County Redevelopment & Housing | | | | | | |
| Authority, 4.75%, 10/1/36 | | 725,000 | | | 757,552 | |
| Fairfax County Redevelopment & Housing | | | | | | |
| Authority, 5%, 10/1/39 | | 300,000 | | | 317,364 | |
| Virginia Housing Development Authority, | | | | | | |
| Series E, 4.8%, 10/1/39 | | 250,000 | | | 258,010 | |
| | | | | | 1,332,926 | |
| Power - 4.3% | | | | | | |
| Chesterfield County Economic | | | | | | |
| Development Authority, Series A, 5%, | | | | | | |
| 5/1/23 | | 565,000 | | | 601,409 | |
| Puerto Rico Electric Power Authority, | | | | | | |
| Series V, (BHAC-CR MBIA-RE FGIC), 5.25%, | | | | | | |
| 7/1/24 | | 290,000 | | | 340,338 | |
| | | | | | 941,747 | |
| Transportation - 5.5% | | | | | | |
| Puerto Rico Highways & Transportation | | | | | | |
| Authority, Series N, (ASSURED GTY), | | | | | | |
| 5.25%, 7/1/34 | | 100,000 | | | 111,441 | |
| Richmond Metropolitan Authority, | | | | | | |
| (Escrowed To Maturity) (NATL-RE), 5.25%, | | | | | | |
| 7/15/22 | | 60,000 | | | 66,541 | |
| Richmond Metropolitan Authority, (NATL- | | | | | | |
| RE), 5.25%, 7/15/22 | | 140,000 | | | 154,930 | |
| Virginia Commonwealth Transportation | | | | | | |
| Board, Series A, 5%, 9/15/24 | | 225,000 | | | 259,992 | |
| Virginia Commonwealth Transportation | | | | | | |
| Board, Series B, 5%, 3/15/25 | | 535,000 | | | 623,681 | |
| | | | | | 1,216,585 | |
| Utilities - 1.5% | | | | | | |
| City of Richmond VA Public Utility | | | | | | |
| Revenue, Series A, 5%, 1/15/38 | | 300,000 | | | 336,891 | |
| | |
| Water - 10.6% | | | | | | |
| Fairfax County Water Authority, Series B, | | | | | | |
| 5.25%, 4/1/23 | | 180,000 | | | 217,251 | |
| Fairfax County Water Authority, 5%, | | | | | | |
| 4/1/27 | | 150,000 | | | 173,532 | |
| Hampton Roads Sanitation District, | | | | | | |
| (Prerefunded 4/1/18 @ $100), 5%, 4/1/33 | | 90,000 | | | 93,290 | |
| Hampton Roads Sanitation District, | | | | | | |
| (Prerefunded 4/1/18 @ $100), 5%, 4/1/33 | | 160,000 | | | 165,997 | |
| Prince William County Service Authority, | | | | | | |
| 5%, 7/1/22 | | 250,000 | | | 292,887 | |
| Upper Occoquan Sewage Authority, Series | | | | | | |
| A, (NATL-RE), 5.15%, 7/1/20 | | 410,000 | | | 434,514 | |
| Virginia Resources Authority, Series B, | | | | | | |
| (Prerefunded 11/1/21 @ $100), (MORAL | | | | | | |
| OBLG), 5%, 11/1/23 | | 40,000 | | | 46,195 | |
| Virginia Resources Authority, (Prerefunded | | | | | | |
| 10/1/19 @ $100), (ST AID WITHHLDG), | | | | | | |
| 5%, 10/1/23 | | 500,000 | | | 546,770 | |
| Virginia Resources Authority, Series B, | | | | | | |
| (MORAL OBLG), 5%, 11/1/23 | | 160,000 | | | 183,950 | |
| Virginia Resources Authority, (Prerefunded | | | | | | |
| 10/1/19 @ $100), (ST AID WITHHLDG), | | | | | | |
| 4.5%, 10/1/28 | | 160,000 | | | 173,067 | |
| Virginia Resources Authority, 5%, 11/1/31 | | 5,000 | | | 5,015 | |
| | | | | | 2,332,468 | |
| TOTAL INVESTMENTS - 98.1% | | | | | | |
| (Cost $20,996,532**) | | | | | 21,585,360 | |
| NET OTHER ASSETS AND LIABILITIES - 1.9% | | | | | 426,372 | |
| TOTAL NET ASSETS - 100.0% | | | | $ | 22,011,732 | |
| | |
| * | | This bond is covered by insurance issued by Ambac Assurance Corporation (“AMBAC”). On November 8, 2010, Ambac Financial Group, Inc., the holding company of AMBAC, announced that it had filed for Chapter 11 bankruptcy protection. The impact that this event may have on the ability of AMBAC to guarantee timely payment of principal and interest on these bonds, should they default, is not known at this time. |
|
|
|
|
|
|
| ** | | Aggregate cost for Federal tax purposes was $20,996,532.. |
| (A) | | Floating rate or variable rate note. Rate shown is as of April 30, 2017. |
| | |
| AMBAC | | AMBAC Indemnity Corp. |
| ASSURED GTY | | Assured Guaranty. |
| BHAC-CR | | Berkshire Hathaway Assurance Corp. |
| FGIC | | Financial Guaranty Insurance Co. |
| MBIA-RE | | MBIA Insurance Corp. |
| MORAL OBLG | | Moral Obligation. |
| NATL-RE | | National Public Finance Guarantee Corp. |
| ST AID WITHHLDG | | State Aid Withholding. |
| ST APPROP | | State Appropriations. |
| |
| Madison Tax-Free National Fund Portfolio of Investments (unaudited) |
| | | | | | |
| | Par Value | | Value (Note 2) | |
| MUNICIPAL BONDS - 98.6% | | | | | | |
| Alabama - 2.5% | | | | | | |
| Alabama Incentives Financing Authority | | | | | | |
| Revenue, Series A, 5%, 9/1/29 | $ | 300,000 | | $ | 321,852 | |
| Tuscaloosa Public Educational Building | | | | | | |
| Authority, (ASSURED GTY), (Prerefunded | | | | | | |
| 7/1/18 @ $100), 6.375%, 7/1/28 | | 295,000 | | | 313,432 | |
| | | | | | 635,284 | |
| Arkansas - 0.7% | | | | | | |
| City of Fort Smith AR Water & Sewer | | | | | | |
| Revenue, (Prerefunded 10/1/18 @ $100), | | | | | | |
| (AGM), 5%, 10/1/21 | | 65,000 | | | 68,662 | |
| City of Fort Smith AR Water & Sewer | | | | | | |
| Revenue, (AGM), 5%, 10/1/21 | | 110,000 | | | 115,655 | |
| | | | | | 184,317 | |
| Colorado - 1.9% | | | | | | |
| El Paso County Facilities Corp., Certificate | | | | | | |
| Participation, Series A, 5%, 12/1/27 | | 400,000 | | | 482,516 | |
| | |
| Delaware - 1.6% | | | | | | |
| State of Delaware, General Obligation, | | | | | | |
| Series A, 5%, 8/1/25 | | 345,000 | | | 410,819 | |
| | |
| Florida - 17.7% | | | | | | |
| City of Margate FL General Obligation, | | | | | | |
| 5%, 7/1/25 | | 785,000 | | | 941,223 | |
| City of Port St. Lucie FL Utility System | | | | | | |
| Revenue, 5%, 9/1/27 | | 600,000 | | | 688,884 | |
| County of Miami-Dade FL, Series B, 5%, | | | | | | |
| 3/1/25 | | 525,000 | | | 612,790 | |
| Hillsborough County Industrial | | | | | | |
| Development Authority, 5%, 10/1/34 | | 450,000 | | | 495,504 | |
| Lee County Industrial Development | | | | | | |
| Authority, 5%, 11/1/28 | | 500,000 | | | 561,175 | |
| Orlando Utilities Commission, Series C, | | | | | | |
| 5%, 10/1/22 | | 525,000 | | | 615,085 | |
| Palm Beach County Solid Waste Authority, | | | | | | |
| 5%, 10/1/24 | | 300,000 | | | 344,238 | |
| Port St. Lucie Community Redevelopment | | | | | | |
| Agency Revenue, Tax Allocation, 5%, | | | | | | |
| 1/1/26 | | 250,000 | | | 299,470 | |
| | | | | | 4,558,369 | |
| Georgia - 5.0% | | | | | | |
| City of Atlanta GA Water & Wastewater | | | | | | |
| Revenue, (AGM), 5.75%, 11/1/30 | | 300,000 | | | 400,488 | |
| City of Columbus GA Water & Sewerage | | | | | | |
| Revenue, Series A, 5%, 5/1/31 | | 430,000 | | | 500,989 | |
| Dublin GA School District, General | | | | | | |
| Obligation, (ST AID WITHHLDG), 4%, | | | | | | |
| 4/1/23 | | 135,000 | | | 149,838 | |
| Georgia State Road & Tollway Authority, | | | | | | |
| Series A, 5%, 6/1/21 | | 90,000 | | | 96,534 | |
| Private Colleges & Universities Authority, | | | | | | |
| Series C, (Prerefunded 9/1/18 @ $100), | | | | | | |
| 5%, 9/1/38 | | 130,000 | | | 136,892 | |
| | | | | | 1,284,741 | |
| Hawaii - 2.1% | | | | | | |
| State of Hawaii, General Obligation, Series | | | | | | |
| EY, 5%, 10/1/25 | | 435,000 | | | 531,039 | |
| | |
| Illinois - 0.6% | | | | | | |
| Regional Transportation Authority, Series | | | | | | |
| A, (AMBAC GO of AUTH) *, 7.2%, 11/1/20 | | 135,000 | | | 149,105 | |
| Indiana - 3.7% | | | | | | |
| Indiana Finance Authority, Series C, 5%, | | | | | | |
| 2/1/21 | | 400,000 | | | 440,908 | |
| Indianapolis Local Public Improvement | | | | | | |
| Bond Bank Revenue, Series A, (ASSURED | | | | | | |
| GTY), (Prerefunded 1/1/19 @ $100), | | | | | | |
| 5.5%, 1/1/38 | | 95,000 | | | 102,089 | |
| Indianapolis Local Public Improvement | | | | | | |
| Bond Bank Revenue, Series A, (ASSURED | | | | | | |
| GTY), 5.5%, 1/1/38 | | 380,000 | | | 403,799 | |
| | | | | | 946,796 | |
| Iowa - 2.9% | | | | | | |
| City of Bettendorf IA, General Obligation, | | | | | | |
| Series A, 5%, 6/1/28 | | 475,000 | | | 526,029 | |
| City of Bettendorf IA, General Obligation, | | | | | | |
| Series A, 5%, 6/1/30 | | 210,000 | | | 232,092 | |
| | | | | | 758,121 | |
See accompanying Notes to Financial Statements.
12
| Madison Funds | April 30, 2017 |
| |
|
| Madison Tax-Free National Fund Portfolio of Investments (unaudited) - continued |
| | | | | | |
| | Par Value | | Value (Note 2) | |
| MUNICIPAL BONDS - continued | | | | | | |
| Kansas - 3.4% | | | | | | |
| City of Wichita KS, General Obligation, | | | | | | |
| Series 816, 5%, 12/1/24 | $ | 510,000 | | $ | 617,875 | |
| Shawnee County Unified School District | | | | | | |
| No. 437, General Obligation, 4%, 9/1/24 | | 220,000 | | | 252,595 | |
| | | | | | 870,470 | |
| Maryland - 2.8% | | | | | | |
| City of Rockville MD, General Obligation, | | | | | | |
| Series A, 5%, 6/1/24 | | 600,000 | | | 729,270 | |
| | |
| Michigan - 3.5% | | | | | | |
| Detroit City School District, General | | | | | | |
| Obligation, Series A, (FGIC Q-SBLF), 6%, | | | | | | |
| 5/1/20 | | 400,000 | | | 448,264 | |
| Redford Unified School District No. 1, | | | | | | |
| General Obligation, (AMBAC Q-SBLF) *, | | | | | | |
| 5%, 5/1/22 | | 410,000 | | | 454,723 | |
| | | | | | 902,987 | |
| Missouri - 6.3% | | | | | | |
| County of St Louis MO, Series D, (Escrowed | | | | | | |
| To Maturity), 5.65%, 2/1/20 | | 500,000 | | | 557,865 | |
| Missouri State Board of Public Buildings, | | | | | | |
| Series B, 4%, 4/1/25 | | 525,000 | | | 587,417 | |
| Springfield School District No. R-12, | | | | | | |
| General Obligation, Series B, (ST AID DIR | | | | | | |
| DEP), 5%, 3/1/25 | | 400,000 | | | 485,572 | |
| | | | | | 1,630,854 | |
| New Jersey - 4.3% | | | | | | |
| City of Elizabeth NJ, General Obligation, | | | | | | |
| (AGM), 3%, 4/1/24 | | 300,000 | | | 316,095 | |
| New Jersey State Turnpike Authority, | | | | | | |
| Series A, (BHAC-CR AGM), 5.25%, 1/1/28 | | 250,000 | | | 309,753 | |
| New Jersey State Turnpike Authority, | | | | | | |
| Series A, (BHAC-CR AGM), 5.25%, 1/1/29 | | 250,000 | | | 306,655 | |
| Union County Improvement Authority, | | | | | | |
| Series A, 4%, 2/1/25 | | 150,000 | | | 166,734 | |
| | | | | | 1,099,237 | |
| New Mexico - 1.9% | | | | | | |
| Farmington Municipal School District No. | | | | | | |
| 5, General Obligation, Series A, (ST AID | | | | | | |
| WITHHLDG), 3%, 9/1/23 | | 450,000 | | | 475,898 | |
| | |
| New York - 3.4% | | | | | | |
| New York State Dormitory Authority, | | | | | | |
| Series 1, (BHAC-CR AMBAC) *, 5.5%, | | | | | | |
| 7/1/31 | | 250,000 | | | 314,627 | |
| Port Authority of New York & New Jersey, | | | | | | |
| (GO of AUTH), 5.375%, 3/1/28 | | 455,000 | | | 555,801 | |
| | | | | | 870,428 | |
| North Carolina - 4.7% | | | | | | |
| North Carolina Medical Care Commission, | | | | | | |
| Series A, (HUD SECT 8), 5.5%, 10/1/24 | | 400,000 | | | 401,172 | |
| State of North Carolina, Series A, 4.5%, | | | | | | |
| 5/1/27 | | 200,000 | | | 212,234 | |
| Town of Cary NC Combined Utility Systems | | | | | | |
| Revenue, 5%, 12/1/23 | | 500,000 | | | 590,360 | |
| | | | | | 1,203,766 | |
| Ohio - 2.3% | | | | | | |
| Cleveland-Cuyahoga County Port | | | | | | |
| Authority, 5%, 7/1/24 | | 500,000 | | | 588,290 | |
| | |
| South Carolina - 8.2% | | | | | | |
| Anderson County School District No. 1, | | | | | | |
| General Obligation, Series A, (SCSDE), | | | | | | |
| 5%, 3/1/25 | | 720,000 | | | 869,976 | |
| City of Bennettsville SC Combined Utility | | | | | | |
| System Revenue, (BAM), 3.5%, 2/1/24 | | 465,000 | | | 507,566 | |
| City of Newberry SC Revenue, (AGM), | | | | | | |
| 4%, 4/1/22 | | 240,000 | | | 263,878 | |
| York County School District No. 1, General | | | | | | |
| Obligation, Series A, (Prerefunded 3/1/19 | | | | | | |
| @ $ 100), (SCSDE), 5%, 3/1/27 | | 440,000 | | | 471,957 | |
| | | | | | 2,113,377 | |
| Tennessee - 0.4% | | | | | | |
| Jackson Energy Authority, 4.75%, 6/1/25 | | 100,000 | | | 113,421 | |
| | |
| Texas - 9.3% | | | | | | |
| Beaumont Independent School District, | | | | | | |
| General Obligation, (PSF-GTD), 4.75%, | | | | | | |
| 2/15/38 | | 300,000 | | | 327,159 | |
| City of San Antonio TX, Water System | | | | | | |
| Revenue, (Prerefunded 11/15/18 @ | | | | | | |
| $ 100), 5.125%, 5/15/29 | | 500,000 | | | 531,460 | |
| Liberty Hill Independent School District, | | | | | | |
| General Obligation, (PSF-GTD), 5%, | | | | | | |
| 8/1/26 | | 410,000 | | | 442,681 | |
| Mueller Local Government Corp., 5%, | | | | | | |
| 9/1/25 | | 500,000 | | | 501,545 | |
| San Jacinto River Authority, (BAM), 4%, | | | | | | |
| 10/1/23 | | 200,000 | | | 222,046 | |
| State of Texas, General Obligation, Series | | | | | | |
| C, 5%, 8/1/27 | | 330,000 | | | 358,142 | |
| | | | | | 2,383,033 | |
| Virginia - 2.5% | | | | | | |
| Fairfax County Redevelopment & Housing | | | | | | |
| Authority, 5%, 10/1/39 | | 100,000 | | | 105,788 | |
| James City County Economic Development | | | | | | |
| Authority, 5%, 6/15/22 | | 250,000 | | | 290,660 | |
| Virginia Housing Development Authority, | | | | | | |
| Series E, 4.8%, 10/1/39 | | 250,000 | | | 258,010 | |
| | | | | | 654,458 | |
| Washington - 3.2% | | | | | | |
| State of Washington, General Obligation, | | | | | | |
| Series E, 5%, 2/1/29 | | 205,000 | | | 241,070 | |
| University of Washington, Series A, 5%, | | | | | | |
| 7/1/32 | | 500,000 | | | 581,190 | |
| | | | | | 822,260 | |
| Wisconsin - 3.7% | | | | | | |
| Maple School District, General Obligation, | | | | | | |
| Series A, 5%, 4/1/24 | | 650,000 | | | 762,899 | |
| Wisconsin Health & Educational Facilities | | | | | | |
| Authority, 5.25%, 10/1/21 | | 200,000 | | | 200,048 | |
| | | | | | 962,947 | |
| TOTAL INVESTMENTS - 98.6% | | | | | | |
| (Cost $24,312,132**) | | | | | 25,361,803 | |
| NET OTHER ASSETS AND LIABILITIES - 1.4% | | | 366,042 | |
| |
| TOTAL NET ASSETS - 100.0% | | | | $ | 25,727,845 | |
| * | | This bond is covered by insurance issued by Ambac Assurance Corporation (“AMBAC”). On November 8, 2010, Ambac Financial Group, Inc., the holding company of AMBAC, announced that it had filed for Chapter 11 bankruptcy protection. The impact that this event may have on the ability of AMBAC to guarantee timely payment of principal and interest on these bonds, should they default, is not known at this time. |
|
|
|
|
|
|
| ** | | Aggregate cost for Federal tax purposes was $24,312,132. |
| | |
| AGM | | Assured Guaranty Municipal Corp. |
| AMBAC | | AMBAC Indemnity Corp. |
| ASSURED GTY | | Assured Guaranty. |
| BAM | | Build America Mutual Assurance Co. |
| BHAC-CR | | Berkshire Hathaway Assurance Corp. |
| FGIC | | Financial Guaranty Insurance Co. |
| GO of AUTH | | General Obligation of the Authority. |
| HUD SECT 8 | | HUD Insured Multifamily Housing. |
| PSF-GTD | | Permanent School Fund Guaranteed. |
| Q-SBLF | | Qualified School Board Loan Fund. |
| SCSDE | | South Carolina School District-Enhanced (State of |
| SC’s | | Intercept program). |
| ST AID DIR DEP | | State Aid Direct Deposit. |
| ST AID WITHHLDG | | State Aid Withholding. |
See accompanying Notes to Financial Statements.
13
| Madison Funds | April 30, 2017 |
| |
|
| Madison High Quality Bond Fund Portfolio of Investments (unaudited) |
| | | | | | |
| | Par Value | | Value (Note 2) | |
| CORPORATE NOTES AND BONDS - 38.7% | | | | |
| Consumer Discretionary - 6.9% | | | | | | |
| Comcast Corp., 3.125%, 7/15/22 | $ | 2,000,000 | | $ | 2,065,368 | |
| Home Depot Inc./The, 2%, 6/15/19 | | 2,000,000 | | | 2,015,996 | |
| Target Corp., 2.9%, 1/15/22 | | 2,000,000 | | | 2,059,954 | |
| Walt Disney Co./The, MTN, 1.1%, 12/1/17 | | 750,000 | | | 749,147 | |
| | | | | | 6,890,465 | |
| Consumer Staples - 1.5% | | | | | | |
| Coca-Cola Co./The, 2.45%, 11/1/20 | | 1,500,000 | | | 1,529,464 | |
| | |
| Energy - 1.5% | | | | | | |
| Chevron Corp., 2.427%, 6/24/20 | | 1,500,000 | | | 1,520,741 | |
| | |
| Financials - 12.6% | | | | | | |
| American Express Credit Corp., 2.125%, | | | | | | |
| 7/27/18 | | 1,000,000 | | | 1,005,769 | |
| Bank of New York Mellon Corp./The, MTN, | | | | | | |
| 1.35%, 3/6/18 | | 500,000 | | | 499,195 | |
| Goldman Sachs Group Inc./The, 2.625%, | | | | | | |
| 1/31/19 | | 1,360,000 | | | 1,375,790 | |
| John Deere Capital Corp., MTN, 2.65%, | | | | | | |
| 1/6/22 | | 1,500,000 | | | 1,518,756 | |
| JPMorgan Chase & Co., 2.25%, 1/23/20 | | 1,500,000 | | | 1,506,174 | |
| JPMorgan Chase & Co., 2.972%, 1/15/23 | | 450,000 | | | 452,317 | |
| Morgan Stanley, 2.8%, 6/16/20 | | 2,000,000 | | | 2,030,476 | |
| State Street Corp., 1.95%, 5/19/21 | | 1,500,000 | | | 1,482,516 | |
| US Bancorp, MTN, 1.95%, 11/15/18 | | 750,000 | | | 754,159 | |
| Wells Fargo & Co., 5.625%, 12/11/17 | | 2,000,000 | | | 2,049,844 | |
| | | | | | 12,674,996 | |
| Health Care - 3.1% | | | | | | |
| Merck & Co. Inc., 3.875%, 1/15/21 | | 1,500,000 | | | 1,595,320 | |
| UnitedHealth Group Inc., 2.875%, 3/15/23 | | 1,500,000 | | | 1,518,090 | |
| | | | | | 3,113,410 | |
| Industrials - 3.1% | | | | | | |
| General Electric Co., MTN, 3.1%, 1/9/23 | | 1,500,000 | | | 1,552,599 | |
| United Parcel Service Inc., 5.5%, 1/15/18 | | 1,500,000 | | | 1,543,701 | |
| | | | | | 3,096,300 | |
| Information Technology - 8.1% | | | | | | |
| Apple Inc., 2.4%, 5/3/23 | | 1,500,000 | | | 1,490,952 | |
| Cisco Systems Inc., 2.2%, 2/28/21 | | 1,500,000 | | | 1,507,932 | |
| Intel Corp., 3.3%, 10/1/21 | | 1,750,000 | | | 1,837,019 | |
| Microsoft Corp., 3%, 10/1/20 | | 1,500,000 | | | 1,559,190 | |
| Visa Inc., 2.2%, 12/14/20 | | 1,700,000 | | | 1,713,586 | |
| | | | | | 8,108,679 | |
| Real Estate - 1.9% | | | | | | |
| Simon Property Group L.P., 4.125%, | | | | | | |
| 12/1/21 | | 1,750,000 | | | 1,866,111 | |
| Total Corporate Notes and Bonds | | | | | | |
| (Cost $38,435,097) | | | | | 38,800,166 | |
| | | | | | | |
| U.S. GOVERNMENT AND AGENCY | | | | | | |
| OBLIGATIONS - 57.7% | | | | | | |
| | | | | | | |
| Fannie Mae - 7.4% | | | | | | |
| 0.875%, 2/8/18 | | 4,000,000 | | | 3,993,948 | |
| 1.375%, 10/7/21 | | 3,500,000 | | | 3,435,561 | |
| | | | | | 7,429,509 | |
| Freddie Mac - 3.6% | | | | | | |
| 2.375%, 1/13/22 | | 3,500,000 | | | 3,570,011 | |
| U.S. Treasury Notes - 46.7% | | | | | | |
| 3.875%, 5/15/18 | | 4,000,000 | | | 4,110,936 | |
| 3.750%, 11/15/18 | | 4,250,000 | | | 4,412,694 | |
| 1.500%, 12/31/18 | | 4,000,000 | | | 4,017,344 | |
| 1.250%, 1/31/19 | | 4,000,000 | | | 4,000,468 | |
| 1.500%, 3/31/19 | | 4,000,000 | | | 4,018,124 | |
| 3.125%, 5/15/19 | | 4,000,000 | | | 4,147,188 | |
| 1.125%, 12/31/19 | | 4,500,000 | | | 4,469,414 | |
| 3.625%, 2/15/20 | | 4,000,000 | | | 4,241,876 | |
| 2.625%, 11/15/20 | | 4,500,000 | | | 4,658,377 | |
| 2.500%, 8/15/23 | | 4,500,000 | | | 4,626,212 | |
| 1.500%, 8/15/26 | | 4,500,000 | | | 4,208,202 | |
| | | | | | 46,910,835 | |
| Total U.S. Government and Agency | | | | | | |
| Obligations (Cost $57,975,559) | | | | | 57,910,355 | |
| | | Shares | | | | |
| SHORT-TERM INVESTMENTS - 2.8% | | | | | | |
| State Street Institutional U.S. Government | | | | | | |
| Money Market Fund, 0.68%, Premier Class | | 2,809,088 | | | 2,809,088 | |
| Total Short-Term Investments | | | | | | |
| (Cost $2,809,088) | | | | | 2,809,088 | |
| | | | | | | |
| TOTAL INVESTMENTS - 99.2% | | | | | | |
| (Cost $99,219,744** ) | | | | | 99,519,609 | |
| NET OTHER ASSETS AND LIABILITIES - 0.8% | | | 845,620 | |
| TOTAL NET ASSETS - 100.0% | | | | $ | 100,365,229 | |
| | |
| ** | | Aggregate cost for Federal tax purposes was $99,219,744. |
| MTN | | Medium Term Note. |
| |
| Madison Core Bond Fund Portfolio of Investments (unaudited) |
| | | | | | |
| | Par Value | | Value (Note 2) | |
| ASSET BACKED SECURITIES - 3.1% | | | | | | |
| ABSC Long Beach Home Equity Loan | | | | | | |
| Trust, Series 2000-LB1, Class AF5 (A), | | | | | | |
| 7.992%, 9/21/30 | $ | 64,040 | | | $ 64,126 | |
| Ally Master Owner Trust, Series 2014-4, | | | | | | |
| Class A2, 1.43%, 6/17/19 | | 750,000 | | | 750,119 | |
| American Express Credit Account Master | | | | | | |
| Trust, Series 2014-3, Class A, 1.49%, | | | | | | |
| 4/15/20 | | 1,000,000 | | | 1,000,682 | |
| CarMax Auto Owner Trust, Series 2014-1, | | | | | | |
| Class B, 1.69%, 8/15/19 | | 600,000 | | | 600,326 | |
| CarMax Auto Owner Trust, Series 2017-1, | | | | | | |
| Class A2, 1.54%, 2/18/20 | | 1,000,000 | | | 1,000,214 | |
| Chase Issuance Trust, Series 2017-A1, | | | | | | |
| Class A (A), 1.294%, 1/18/22 | | 1,000,000 | | | 1,003,540 | |
| CNH Equipment Trust, Series 2014-A, | | | | | | |
| Class A3, 0.84%, 5/15/19 | | 32,830 | | | 32,819 | |
| Porsche Innovative Lease Owner Trust, | | | | | | |
| Series 2015-1, Class A4 (B), 1.43%, | | | | | | |
| 5/21/21 | | 584,000 | | | 583,938 | |
| Santander Drive Auto Receivables Trust, | | | | | | |
| Series 2013-5, Class C, 2.25%, 6/17/19 | | 460,694 | | | 461,828 | |
| Santander Drive Auto Receivables Trust, | | | | | | |
| Series 2013-5, Class D, 2.73%, 10/15/19 | | 530,000 | | | 534,655 | |
| Santander Drive Auto Receivables | | | | | | |
| Trust, Series 2013-A, Class C (B), 3.12%, | | | | | | |
| 10/15/19 | | 127,464 | | | 128,024 | |
| Santander Drive Auto Receivables Trust, | | | | | | |
| Series 2013-4, Class C, 3.25%, 1/15/20 | | 307,010 | | | 308,479 | |
| Volvo Financial Equipment LLC, Series | | | | | | |
| 2014-1A, Class A3 (B), 0.82%, 4/16/18 | | 7,249 | | | 7,246 | |
| Total Asset Backed Securities | | | | | | |
| (Cost $6,478,284) | | | | | 6,475,996 | |
| | | | | | | |
| COLLATERALIZED MORTGAGE | | | | | | |
| OBLIGATIONS - 2.9% | | | | | | |
| Fannie Mae REMICS, Series 2015-12, | | | | | | |
| Class NI, IO, 3.5%, 3/25/30 | | 2,557,193 | | | 297,494 | |
| Fannie Mae REMICS, Series 2011-31, | | | | | | |
| Class DB, 3.5%, 4/25/31 | | 425,000 | | | 449,130 | |
| Fannie Mae REMICS, Series 2011-36, | | | | | | |
| Class QB, 4%, 5/25/31 | | 1,000,000 | | | 1,079,677 | |
| Fannie Mae REMICS, Series 2001-73, | | | | | | |
| Class GZ, 6%, 12/25/31 | | 317,697 | | | 360,266 | |
| Fannie Mae REMICS, Series 2005-79, | | | | | | |
| Class LT, 5.5%, 9/25/35 | | 241,580 | | | 270,633 | |
| Fannie Mae REMICS, Series 2011-101, | | | | | | |
| Class NC, 2.5%, 4/25/40 | | 834,082 | | | 840,764 | |
| Fannie Mae REMICS, Series 2015-44, | | | | | | |
| Class GI, IO, 3%, 11/25/40 | | 839,796 | | | 86,601 | |
| Fannie Mae REMICS, Series 2016-21, | | | | | | |
| Class BA, 3%, 3/25/42 | | 846,999 | | | 867,631 | |
| Freddie Mac REMICS, Series 3825, Class | | | | | | |
| CB, 3.5%, 3/15/26 | | 1,000,000 | | | 1,053,038 | |
| Freddie Mac REMICS, Series 4066, Class | | | | | | |
| DI, IO, 3%, 6/15/27 | | 3,504,252 | | | 316,754 | |
| Government National Mortgage | | | | | | |
| Association, Series 2015-53, Class IL, IO, | | | | | | |
| 3%, 9/20/44 | | 2,531,873 | | | 437,686 | |
| Total Collateralized Mortgage | | | | | | |
| Obligations (Cost $6,102,956) | | | | | 6,059,674 | |
| COMMERCIAL MORTGAGE-BACKED | | | | | | |
| SECURITIES - 2.9% | | | | | | |
| Bear Stearns Commercial Mortgage | | | | | | |
| Securities Trust, Series 2007-PW17, Class | | | | | | |
| A1A (A), 5.65%, 6/11/50 | | 776,531 | | | 781,434 | |
| Fannie Mae-Aces, Series 2016-M2, Class | | | | | | |
| X2, IO (A), 1.207%, 1/25/23 | | 12,626,977 | | | 627,923 | |
| FHLMC Multifamily Structured Pass | | | | | | |
| Through Certificates, Series K718, Class | | | | | | |
| X1, IO (A), 0.767%, 1/25/22 | | 24,148,488 | | | 615,815 | |
| FREMF Mortgage Trust, Series 2011- | | | | | | |
| K702, Class B (A) (B), 4.931%, 4/25/44 | | 500,000 | | | 510,349 | |
| FREMF Mortgage Trust, Series 2012- | | | | | | |
| K706, Class B (A) (B), 4.169%, 11/25/44 | | 255,000 | | | 261,193 | |
| FREMF Mortgage Trust, Series 2012- | | | | | | |
| K708, Class B (A) (B), 3.883%, 2/25/45 | | 1,250,000 | | | 1,277,699 | |
| FREMF Mortgage Trust, Series 2013- | | | | | | |
| K502, Class B (A) (B), 2.499%, 3/25/45 | | 545,000 | | | 544,871 | |
| FREMF Mortgage Trust, Series 2011- | | | | | | |
| K701, Class C (A) (B), 4.436%, 7/25/48 | | 1,250,000 | | | 1,260,398 | |
| UBS-Barclays Commercial Mortgage | | | | | | |
| Trust, Series 2013-C6, Class A2, 2.067%, | | | | | | |
| 4/10/46 | | 300,000 | | | 300,090 | |
| Total Commercial Mortgage-Backed | | | | | | |
| Securities (Cost $6,357,807) | | | | | 6,179,772 | |
See accompanying Notes to Financial Statements.
14
| Madison Funds | April 30, 2017 |
| |
|
| Madison Core Bond Fund Portfolio of Investments (unaudited) - continued |
| | | | | | |
| | Par Value | | Value (Note 2) |
| CORPORATE NOTES AND BONDS - 34.8% | | | | |
| Consumer Discretionary - 6.9% | | | | | | |
| Charter Communications Operating LLC | | | | | | |
| / Charter Communications Operating | | | | | | |
| Capital Corp., 4.464%, 7/23/22 | $ | 1,000,000 | | $ | 1,062,024 | |
| Delphi Automotive PLC (C), 3.15%, | | | | | | |
| 11/19/20 | | 1,000,000 | | | 1,020,725 | |
| ERAC USA Finance LLC (B), 6.7%, 6/1/34 | | 250,000 | | | 303,862 | |
| Ford Motor Credit Co. LLC, MTN, 2.943%, | | | | | | |
| 1/8/19 | | 1,000,000 | | | 1,012,506 | |
| General Motors Financial Co. Inc., 3.2%, | | | | | | |
| 7/6/21 | | 800,000 | | | 807,085 | |
| Georgia-Pacific LLC (B), 3.163%, | | | | | | |
| 11/15/21 | | 1,000,000 | | | 1,022,255 | |
| GLP Capital L.P. / GLP Financing II Inc., | | | | | | |
| 4.875%, 11/1/20 | | 275,000 | | | 292,875 | |
| Harman International Industries Inc., | | | | | | |
| 4.15%, 5/15/25 | | 1,000,000 | | | 1,034,775 | |
| Lennar Corp., 4.75%, 4/1/21 | | 500,000 | | | 526,175 | |
| Marriott International Inc., 3.125%, | | | | | | |
| 6/15/26 | | 600,000 | | | 583,872 | |
| McDonald’s Corp., MTN, 3.5%, 3/1/27 | | 1,000,000 | | | 1,015,444 | |
| Newell Brands Inc., 4.2%, 4/1/26 | | 1,100,000 | | | 1,156,170 | |
| Omnicom Group Inc., 3.6%, 4/15/26 | | 750,000 | | | 755,756 | |
| Priceline Group Inc./The, 3.6%, 6/1/26 | | 1,000,000 | | | 1,006,661 | |
| QVC Inc., 3.125%, 4/1/19 | | 800,000 | | | 809,237 | |
| Sirius XM Radio Inc. (B), 6%, 7/15/24 | | 525,000 | | | 561,750 | |
| Toll Brothers Finance Corp., 4%, 12/31/18 | | 450,000 | | | 462,375 | |
| Walgreens Boots Alliance Inc., 4.5%, | | | | | | |
| 11/18/34 | | 1,000,000 | | | 1,003,513 | |
| | | | | | 14,437,060 | |
| Consumer Staples - 3.7% | | | | | | |
| Anheuser-Busch InBev Finance Inc., | | | | | | |
| 4.9%, 2/1/46 | | 1,000,000 | | | 1,092,453 | |
| Bunge Ltd. Finance Corp., 3.25%, | | | | | | |
| 8/15/26 | | 1,000,000 | | | 977,899 | |
| CVS Health Corp., 4.75%, 12/1/22 | | 1,000,000 | | | 1,094,417 | |
| CVS Health Corp., 5.125%, 7/20/45 | | 1,000,000 | | | 1,117,564 | |
| JM Smucker Co./The, 3.5%, 3/15/25 | | 1,000,000 | | | 1,021,807 | |
| Kraft Heinz Foods Co., 3.95%, 7/15/25 | | 1,000,000 | | | 1,026,739 | |
| Kraft Heinz Foods Co., 4.375%, 6/1/46 | | 1,000,000 | | | 951,437 | |
| Molson Coors Brewing Co., 2.1%, 7/15/21 | | 500,000 | | | 490,752 | |
| | | | | | 7,773,068 | |
| Energy - 5.9% | | | | | | |
| Antero Resources Corp., 5.625%, 6/1/23 | | 300,000 | | | 308,625 | |
| Boardwalk Pipelines L.P., 4.45%, 7/15/27 | | 400,000 | | | 409,221 | |
| Energy Transfer Partners L.P., 5.2%, | | | | | | |
| 2/1/22 | | 1,000,000 | | | 1,082,447 | |
| EnLink Midstream Partners L.P., 4.85%, | | | | | | |
| 7/15/26 | | 300,000 | | | 315,255 | |
| Enterprise Products Operating LLC, | | | | | | |
| 3.75%, 2/15/25 | | 1,000,000 | | | 1,024,000 | |
| Helmerich & Payne International Drilling | | | | | | |
| Co., 4.65%, 3/15/25 | | 1,000,000 | | | 1,049,456 | |
| Kinder Morgan Inc. (B), 5%, 2/15/21 | | 1,000,000 | | | 1,073,080 | |
| Marathon Oil Corp., 2.7%, 6/1/20 | | 1,000,000 | | | 997,254 | |
| Marathon Petroleum Corp., 2.7%, | | | | | | |
| 12/14/18 | | 500,000 | | | 505,463 | |
| Phillips 66 Partners L.P., 3.605%, 2/15/25 | | 1,300,000 | | | 1,290,141 | |
| Pioneer Natural Resources Co., 3.45%, | | | | | | |
| 1/15/21 | | 1,000,000 | | | 1,030,173 | |
| Tosco Corp., 7.8%, 1/1/27 | | 1,000,000 | | | 1,308,211 | |
| Valero Energy Corp., 6.625%, 6/15/37 | | 1,000,000 | | | 1,188,643 | |
| Williams Partners L.P. / ACMP Finance | | | | | | |
| Corp., 4.875%, 5/15/23 | | 750,000 | | | 772,500 | |
| | | | | | 12,354,469 | |
| Financials - 7.6% | | | | | | |
| AerCap Ireland Capital DAC / AerCap | | | | | | |
| Global Aviation Trust (C), 3.75%, 5/15/19 | | 450,000 | | | 462,908 | |
| Air Lease Corp., 3.875%, 4/1/21 | | 450,000 | | | 469,753 | |
| Air Lease Corp., 3.75%, 2/1/22 | | 1,000,000 | | | 1,035,290 | |
| Bank of America Corp., MTN, 3.3%, | | | | | | |
| 1/11/23 | | 1,000,000 | | | 1,016,559 | |
| Bank of Montreal, MTN (C), 1.9%, | | | | | | |
| 8/27/21 | | 1,000,000 | | | 982,972 | |
| Berkshire Hathaway Inc., 3.125%, | | | | | | |
| 3/15/26 | | 250,000 | | | 252,138 | |
| Brookfield Finance Inc. (C), 4.25%, | | | | | | |
| 6/2/26 | | 750,000 | | | 769,289 | |
| CBOE Holdings Inc., 3.65%, 1/12/27 | | 600,000 | | | 605,786 | |
| Citigroup Inc., 2.75%, 4/25/22 | | 400,000 | | | 398,822 | |
| Discover Bank, 3.45%, 7/27/26 | | 500,000 | | | 486,693 | |
| Goldman Sachs Group Inc./The, 5.75%, | | | | | | |
| 1/24/22 | | 1,000,000 | | | 1,128,217 | |
| Goldman Sachs Group Inc./The, 3.5%, | | | | | | |
| 11/16/26 | | 300,000 | | | 296,296 | |
| JPMorgan Chase & Co., 2.972%, 1/15/23 | | 300,000 | | | 301,544 | |
| JPMorgan Chase & Co., 3.125%, 1/23/25 | | 1,000,000 | | | 989,497 | |
| Liberty Mutual Group Inc. (B), 4.25%, | | | | | | |
| 6/15/23 | | 1,250,000 | | | 1,330,529 | |
| Morgan Stanley, 4.3%, 1/27/45 | | 1,000,000 | | | 999,569 | |
| Nasdaq Inc., 3.85%, 6/30/26 | | 175,000 | | | 176,489 | |
| Raymond James Financial Inc., 3.625%, | | | | | | |
| 9/15/26 | | 400,000 | | | 399,090 | |
| Regions Bank, 2.25%, 9/14/18 | | 1,000,000 | | | 1,003,588 | |
| Regions Financial Corp., 3.2%, 2/8/21 | | 1,000,000 | | | 1,022,158 | |
| Synchrony Financial, 3.75%, 8/15/21 | | 700,000 | | | 724,287 | |
| Synchrony Financial, 3.7%, 8/4/26 | | 600,000 | | | 576,701 | |
| TD Ameritrade Holding Corp., 3.3%, | | | | | | |
| 4/1/27 | | 500,000 | | | 500,640 | |
| | | | | | 15,928,815 | |
| Health Care - 2.2% | | | | | | |
| AbbVie Inc., 4.7%, 5/14/45 | | 1,000,000 | | | 1,006,841 | |
| Actavis Funding SCS (C), 4.75%, 3/15/45 | | 1,000,000 | | | 1,018,491 | |
| Express Scripts Holding Co., 4.8%, | | | | | | |
| 7/15/46 | | 950,000 | | | 923,484 | |
| Forest Laboratories LLC (B), 5%, 12/15/21 | | 200,000 | | | 218,227 | |
| HCA Inc., 3.75%, 3/15/19 | | 800,000 | | | 817,000 | |
| Shire Acquisitions Investments Ireland | | | | | | |
| DAC (C), 1.9%, 9/23/19 | | 750,000 | | | 745,761 | |
| | | | | | 4,729,804 | |
| Industrials - 1.9% | | | | | | |
| CRH America Inc. (B), 3.875%, 5/18/25 | | 1,000,000 | | | 1,033,481 | |
| Fortive Corp. (B), 2.35%, 6/15/21 | | 325,000 | | | 321,681 | |
| International Lease Finance Corp., | | | | | | |
| 8.875%, 9/1/17 | | 500,000 | | | 511,918 | |
| Lockheed Martin Corp., 4.7%, 5/15/46 | | 1,000,000 | | | 1,098,833 | |
| Masco Corp., 4.375%, 4/1/26 | | 700,000 | | | 740,320 | |
| United Rentals North America Inc., | | | | | | |
| 6.125%, 6/15/23 | | 400,000 | | | 418,000 | |
| | | | | | 4,124,233 | |
| Information Technology - 2.7% | | | | | | |
| Analog Devices Inc., 5.3%, 12/15/45 | | 600,000 | | | 672,968 | |
| Autodesk Inc., 4.375%, 6/15/25 | | 1,000,000 | | | 1,052,732 | |
| CA Inc., 4.7%, 3/15/27 | | 1,000,000 | | | 1,052,137 | |
| CDW LLC / CDW Finance Corp., 5%, | | | | | | |
| 9/1/23 | | 200,000 | | | 205,500 | |
| Dell International LLC / EMC Corp. (B), | | | | | | |
| 8.35%, 7/15/46 | | 350,000 | | | 452,997 | |
| Fidelity National Information Services | | | | | | |
| Inc., 3%, 8/15/26 | | 625,000 | | | 598,844 | |
| Hewlett Packard Enterprise Co., 6.35%, | | | | | | |
| 10/15/45 | | 350,000 | | | 363,636 | |
| Microsoft Corp., 3.5%, 2/12/35 | | 1,000,000 | | | 979,362 | |
| NVIDIA Corp., 2.2%, 9/16/21 | | 250,000 | | | 246,863 | |
| | | | | | 5,625,039 | |
| Materials - 0.6% | | | | | | |
| Arconic Inc., 5.125%, 10/1/24 | | 200,000 | | | 209,500 | |
| Packaging Corp. of America, 3.65%, | | | | | | |
| 9/15/24 | | 1,000,000 | | | 1,013,928 | |
| | | | | | 1,223,428 | |
| Real Estate - 0.7% | | | | | | |
| Boston Properties L.P., 3.65%, 2/1/26 | | 450,000 | | | 451,941 | |
| Iron Mountain Inc. (B), 4.375%, 6/1/21 | | 500,000 | | | 518,750 | |
| WP Carey Inc., 4.25%, 10/1/26 | | 500,000 | | | 501,760 | |
| | | | | | 1,472,451 | |
| Telecommunication Services - 1.7% | | | | | | |
| AT&T Inc., 4.75%, 5/15/46 | | 1,000,000 | | | 936,713 | |
| Harris Corp., 5.054%, 4/27/45 | | 1,000,000 | | | 1,098,536 | |
| Sprint Spectrum Co. LLC / Sprint | | | | | | |
| Spectrum Co. II LLC / Sprint Spectrum Co. | | | | | | |
| III LLC (B), 3.36%, 9/20/21 | | 500,000 | | | 504,375 | |
| Verizon Communications Inc., 4.4%, | | | | | | |
| 11/1/34 | | 1,000,000 | | | 957,082 | |
| | | | | | 3,496,706 | |
| Utilities - 0.9% | | | | | | |
| Black Hills Corp., 4.25%, 11/30/23 | | 1,000,000 | | | 1,057,970 | |
| Duke Energy Corp., 3.75%, 9/1/46 | | 1,000,000 | | | 915,990 | |
| | | | | | 1,973,960 | |
| Total Corporate Notes and Bonds | | | | | | |
| (Cost $71,538,284) | | | | | 73,139,033 | |
| | | | | | | |
| LONG TERM MUNICIPAL BONDS - 8.2% | | | | | | |
| City of Laredo TX, General Obligation, | | | | | | |
| 6.566%, 2/15/39 | | 1,500,000 | | | 1,610,115 | |
| County of Palm Beach FL Revenue, 5%, | | | | | | |
| 11/1/33 | | 1,880,000 | | | 1,979,264 | |
| County of Pasco FL Water & Sewer | | | | | | |
| Revenue, Series B, 6.76%, 10/1/39 | | 1,500,000 | | | 1,666,245 | |
| East Baton Rouge Sewerage Commission | | | | | | |
| Revenue, Series B, 6.087%, 2/1/45 | | 2,000,000 | | | 2,181,660 | |
| Las Vegas Valley Water District, General | | | | | | |
| Obligation, Series A, 7.1%, 6/1/39 | | 1,000,000 | | | 1,097,560 | |
| Northside Independent School District, | | | | | | |
| General Obligation, Series B, (PSF-GTD), | | | | | | |
| 5.741%, 8/15/35 | | 1,600,000 | | | 1,722,736 | |
| Rancho Water District Financing | | | | | | |
| Authority Revenue, Series A, 6.337%, | | | | | | |
| 8/1/40 | | 1,000,000 | | | 1,097,780 | |
| South Dakota State Building Authority | | | | | | |
| Revenue, Series F, 4.7%, 6/1/32 | | 1,250,000 | | | 1,319,013 | |
| State of Iowa Revenue, 6.75%, 6/1/34 | | 2,000,000 | | | 2,187,200 | |
| West Contra Costa Unified School District, | | | | | | |
| General Obligation, 8.46%, 8/1/34 | | 2,000,000 | | | 2,266,180 | |
| Total Long Term Municipal Bonds | | | | | | |
| (Cost $16,908,126) | | | | | 17,127,753 | |
| | | | | | | |
| MORTGAGE BACKED SECURITIES - 22.6% | | | | |
| Fannie Mae - 13.9% | | | | | | |
| 3%, 5/1/27 Pool # AL1715 | | 767,178 | | | 791,923 | |
| 3.5%, 5/1/29 Pool # AW3740 | | 1,354,982 | | | 1,422,012 | |
| 3.5%, 8/1/29 Pool # MA2003 | | 885,295 | | | 925,955 | |
| 3.5%, 10/1/29 Pool # AX3155 | | 482,047 | | | 506,161 | |
| 3%, 9/1/30 Pool # 890696 | | 1,274,584 | | | 1,312,269 | |
| 3%, 12/1/30 Pool # AL8924 | | 649,014 | | | 668,425 | |
| 2.5%, 5/1/31 Pool # AS7117 | | 1,106,249 | | | 1,114,456 | |
| 7%, 11/1/31 Pool # 607515 | | 8,634 | | | 9,721 | |
See accompanying Notes to Financial Statements.
15
| Madison Funds | April 30, 2017 |
| |
|
| Madison Core Bond Fund Portfolio of Investments (unaudited) - continued |
| | | | | | |
| | Par Value | | Value (Note 2) |
| MORTGAGE BACKED SECURITIES - continued | | | | |
| Fannie Mae - continued | | | | | | |
| 3.5%, 12/1/31 Pool # MA0919 (D) | $ | 202,903 | | $ | 212,173 | |
| 3%, 2/1/32 Pool # AL9867 | | 786,715 | | | 810,037 | |
| 6.5%, 3/1/32 Pool # 631377 | | 29,986 | | | 33,325 | |
| 6.5%, 5/1/32 Pool # 636758 | | 2,267 | | | 2,527 | |
| 7%, 5/1/32 Pool # 644591 | | 842 | | | 912 | |
| 6.5%, 6/1/32 Pool # 545691 | | 83,094 | | | 94,854 | |
| 5.5%, 11/1/33 Pool # 555880 | | 97,669 | | | 109,479 | |
| 5%, 5/1/34 Pool # 780890 | | 42,574 | | | 46,718 | |
| 7%, 7/1/34 Pool # 792636 | | 7,895 | | | 8,188 | |
| 4%, 2/1/35 Pool # MA2177 | | 1,021,449 | | | 1,086,063 | |
| 5%, 8/1/35 Pool # 829670 | | 82,212 | | | 90,062 | |
| 5%, 9/1/35 Pool # 820347 | | 127,353 | | | 142,377 | |
| 5%, 9/1/35 Pool # 835699 | | 99,844 | | | 111,667 | |
| 3.5%, 12/1/35 Pool # MA2473 | | 1,227,205 | | | 1,278,811 | |
| 4.5%, 12/1/35 Pool # 745147 | | 15,663 | | | 16,907 | |
| 5%, 12/1/35 Pool # 850561 | | 38,166 | | | 41,832 | |
| 6%, 11/1/36 Pool # 902510 | | 88,767 | | | 102,927 | |
| 6%, 10/1/37 Pool # 947563 | | 109,412 | | | 125,303 | |
| 6.5%, 12/1/37 Pool # 889072 | | 91,824 | | | 103,252 | |
| 6.5%, 8/1/38 Pool # 987711 | | 235,336 | | | 275,003 | |
| 4%, 9/1/40 Pool # AE3039 | | 950,515 | | | 1,010,160 | |
| 4%, 1/1/41 Pool # AB2080 | | 743,670 | | | 788,151 | |
| 5.5%, 7/1/41 Pool # AL6588 | | 711,222 | | | 797,116 | |
| 4%, 9/1/41 Pool # AJ1406 | | 564,831 | | | 597,147 | |
| 4%, 10/1/41 Pool # AJ4046 | | 937,066 | | | 995,602 | |
| 3.5%, 11/1/41 Pool # AB3867 | | 399,191 | | | 412,783 | |
| 4%, 3/1/42 Pool # AL1998 | | 1,461,573 | | | 1,552,673 | |
| 3.5%, 6/1/42 Pool # AO4134 | | 1,408,718 | | | 1,455,571 | |
| 3.5%, 8/1/42 Pool # AP2133 | | 813,100 | | | 840,059 | |
| 3%, 9/1/42 Pool # AP6568 | | 129,126 | | | 129,705 | |
| 3.5%, 9/1/42 Pool # AB6228 | | 474,218 | | | 489,942 | |
| 4%, 10/1/42 Pool # AP7363 | | 1,027,826 | | | 1,084,247 | |
| 3.5%, 12/1/42 Pool # AQ8892 | | 160,986 | | | 166,279 | |
| 3.5%, 1/1/43 Pool # AQ9326 | | 693,240 | | | 717,853 | |
| 3%, 2/1/43 Pool # AL3072 | | 1,115,987 | | | 1,120,988 | |
| 3.5%, 3/1/43 Pool # AT0310 | | 672,304 | | | 694,511 | |
| 3.5%, 4/1/43 Pool # AR9902 | | 454,838 | | | 470,988 | |
| 3.5%, 4/1/43 Pool # AT2887 | | 403,646 | | | 416,799 | |
| 4%, 1/1/45 Pool # AS4257 | | 329,458 | | | 348,535 | |
| 4.5%, 2/1/45 Pool # MA2193 | | 1,064,216 | | | 1,146,753 | |
| 3.5%, 8/1/45 Pool # AS5645 | | 1,041,118 | | | 1,071,510 | |
| 3.5%, 12/1/45 Pool # AS6309 | | 460,992 | | | 474,449 | |
| 4.5%, 10/1/46 Pool # MA2783 | | 255,736 | | | 275,243 | |
| 3%, 1/1/47 Pool # BE0108 | | 737,438 | | | 739,091 | |
| | | | | | 29,239,494 | |
| Freddie Mac - 8.7% | | | | | | |
| 4.5%, 2/1/25 Pool # J11722 | | 206,406 | | | 219,885 | |
| 4.5%, 5/1/25 Pool # J12247 | | 406,644 | | | 434,522 | |
| 8%, 6/1/30 Pool # C01005 | | 732 | | | 872 | |
| 2.5%, 3/1/31 Pool # G18590 | | 419,713 | | | 422,765 | |
| 6.5%, 1/1/32 Pool # C62333 | | 26,230 | | | 29,359 | |
| 3.5%, 8/1/32 Pool # C91485 | | 472,827 | | | 495,480 | |
| 4.5%, 6/1/34 Pool # C01856 | | 573,888 | | | 619,649 | |
| 6.5%, 11/1/36 Pool # C02660 | | 13,433 | | | 15,427 | |
| 5.5%, 1/1/37 Pool # G04593 | | 316,255 | | | 352,009 | |
| 5.5%, 11/1/37 Pool # A68787 | | 186,485 | | | 211,402 | |
| 5.5%, 12/1/38 Pool # G05267 | | 629,037 | | | 697,715 | |
| 5%, 10/1/39 Pool # G60465 | | 1,550,683 | | | 1,703,828 | |
| 3.5%, 11/1/40 Pool # G06168 | | 650,414 | | | 671,930 | |
| 4%, 10/1/41 Pool # Q04092 | | 1,096,483 | | | 1,161,284 | |
| 4.5%, 3/1/42 Pool # G07491 | | 720,244 | | | 777,405 | |
| 3%, 9/1/42 Pool # C04233 | | 737,595 | | | 740,961 | |
| 3%, 2/1/43 Pool # Q15767 | | 542,934 | | | 545,243 | |
| 3%, 4/1/43 Pool # V80025 | | 543,288 | | | 545,908 | |
| 3%, 4/1/43 Pool # V80026 | | 533,430 | | | 536,002 | |
| 3.5%, 8/1/44 Pool # Q27927 | | 710,882 | | | 733,629 | |
| 4%, 5/1/45 Pool # G08642 | | 1,335,297 | | | 1,406,793 | |
| 3%, 7/1/45 Pool # G08653 | | 854,997 | | | 854,396 | |
| 3.5%, 8/1/45 Pool # Q35614 | | 858,024 | | | 883,780 | |
| 3.5%, 9/1/45 Pool # G08667 | | 945,268 | | | 972,829 | |
| 3%, 11/1/45 Pool # G08675 | | 1,059,640 | | | 1,058,895 | |
| 3%, 1/1/46 Pool # G08686 | | 1,094,695 | | | 1,093,926 | |
| 3%, 10/1/46 Pool # G60722 | | 971,358 | | | 972,029 | |
| | | | | | 18,157,923 | |
| Ginnie Mae - 0.0% | | | | | | |
| 6.5%, 2/20/29 Pool # 2714 | | 12,287 | | | 14,193 | |
| 6.5%, 4/20/31 Pool # 3068 | | 5,722 | | | 6,758 | |
| 4%, 4/15/39 Pool # 698089 | | 49,347 | | | 52,204 | |
| | | | | | 73,155 | |
| Total Mortgage Backed Securities | | | | | | |
| (Cost $47,310,837) | | | | | 47,470,572 | |
| | | | | | | |
| U.S. GOVERNMENT AND AGENCY | | | | | | |
| OBLIGATIONS - 22.6% | | | | | | |
| | | | | | | |
| Freddie Mac - 0.5% | | | | | | |
| 1.000%, 12/30/19 (E) | | 975,000 | | | 974,019 | |
| | |
| U.S. Treasury Bonds - 5.2% | | | | | | |
| 6.625%, 2/15/27 | | 2,000,000 | | | 2,764,844 | |
| 5.375%, 2/15/31 | | 1,250,000 | | | 1,685,937 | |
| 4.500%, 5/15/38 | | 2,750,000 | | | 3,531,063 | |
| 3.750%, 8/15/41 | | 250,000 | | | 287,276 | |
| 3.000%, 5/15/45 | | 1,650,000 | | | 1,663,278 | |
| 2.250%, 8/15/46 | | 1,250,000 | | | 1,073,047 | |
| | | | | | 11,005,445 | |
| U.S. Treasury Notes - 16.9% | | | | | | |
| 1.875%, 10/31/17 | | 3,000,000 | | | 3,012,189 | |
| 4.250%, 11/15/17 | | 2,550,000 | | | 2,593,727 | |
| 2.625%, 1/31/18 | | 3,000,000 | | | 3,034,218 | |
| 2.750%, 2/28/18 | | 3,000,000 | | | 3,040,314 | |
| 3.875%, 5/15/18 | | 2,750,000 | | | 2,826,268 | |
| 1.375%, 2/28/19 | | 3,000,000 | | | 3,006,327 | |
| 3.625%, 8/15/19 | | 1,750,000 | | | 1,840,577 | |
| 2.625%, 11/15/20 | | 1,350,000 | | | 1,397,513 | |
| 3.125%, 5/15/21 | | 3,750,000 | | | 3,958,740 | |
| 2.125%, 8/15/21 | | 1,900,000 | | | 1,930,949 | |
| 2.000%, 10/31/21 | | 2,500,000 | | | 2,524,120 | |
| 1.750%, 9/30/22 | | 2,500,000 | | | 2,480,175 | |
| 2.750%, 2/15/24 | | 1,500,000 | | | 1,563,926 | |
| 2.125%, 3/31/24 | | 1,250,000 | | | 1,252,539 | |
| 2.250%, 11/15/25 | | 1,000,000 | | | 1,000,430 | |
| | | | | | 35,462,012 | |
| Total U.S. Government and Agency | | | | | | |
| Obligations (Cost $45,768,599) | | | | | 47,441,476 | |
| | Contracts | | | | |
| PUT OPTIONS PURCHASED - 0.0% | | | | | | |
| U.S. Treasury 10 Years Note, Put, Jun | | | | | | |
| 2017, $122 | | 25 | | | 1,953 | |
| U.S. Treasury 10 Years Note, Put, Jun | | | | | | |
| 2017, $124 | | 25 | | | 8,594 | |
| Total Put Options Purchased | | | | | | |
| (Cost $20,463) | | | | | 10,547 | |
| | Shares | | | | |
| SHORT-TERM INVESTMENTS - 1.7% | | | | | | |
| State Street Institutional U.S. | | | | | | |
| Government Money Market Fund, 0.68%, | | | | | | |
| Premier Class | | 3,527,962 | | | 3,527,962 | |
| Total Short-Term Investments | | | | | | |
| (Cost $3,527,962) | | | | | 3,527,962 | |
| | | | | | | |
| TOTAL INVESTMENTS - 98.8% | | | | | | |
| (Cost $204,013,318**) | | | | | 207,432,785 | |
| NET OTHER ASSETS AND LIABILITIES - 1.2% | | | 2,589,313 | |
| TOTAL CALL & PUT OPTIONS WRITTEN - (0.0%) | | | (8,594 | ) |
| TOTAL NET ASSETS - 100.0% | | | | $ | 210,013,504 | |
| | |
| ** | | Aggregate cost for Federal tax purposes was $204,013,318. |
| (A) | | Floating rate or variable rate note. Rate shown is as of April 30, 2017. |
|
| (B) | | Security sold within terms of a private placement memorandum exempt from registration under section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other “qualified institutional buyers.” |
|
|
|
| (C) | | Notes and bonds, issued by foreign entities, denominated in U.S. dollars. The aggregate of these securities is 2.4% of total net assets. |
|
|
| (D) | | Security purchased on a delayed delivery or when-issued basis. Rate shown is at issue date. |
|
| (E) | | Stepped rate security. Rate shown is as of April 30, 2017. |
| | |
| MTN | | Medium Term Note. |
| PLC | | Public Limited Company. |
| PSF-GTD | | Permanent School Fund Guaranteed. |
| |
| | | | | | | | | | | |
| | | Contracts
(100 Shares
Per Contract) | | | | | | | | | |
| Put Options Written | | | Expiration
Date | | | Strike
Price | | Value
(Note 2) | |
| U.S. Treasury 10 Years Note | | 25 | | June 2017 | | $ | 122.50 | | $ | (2,735 | ) |
| U.S. Treasury 10 Years Note | | 25 | | June 2017 | | | 123.50 | | | (5,859 | ) |
| Total Put Options Written (Premiums received $17,819) | | | | | | | | | $ | (8,594 | ) |
| Total Value of Options Written (Premiums received $17,819) | | | | | | | | | $ | (8,594 | ) |
See accompanying Notes to Financial Statements.
16
| Madison Funds | April 30, 2017 |
| |
|
| Madison Corporate Bond Fund Portfolio of Investments (unaudited) |
| | | | | | |
| | | Par Value | | Value (Note 2) |
| CORPORATE NOTES AND BONDS - 95.5% | | | | |
| | | | | | | |
| Consumer Discretionary - 12.8% | | | | | | |
| Amazon.com Inc., 3.8%, 12/5/24 | $ | 200,000 | | $ | 213,037 | |
| Charter Communications Operating LLC | | | | | | |
| /Charter Communications Operating | | | | | | |
| Capital Corp., 4.464%, 7/23/22 | | 200,000 | | | 212,405 | |
| Comcast Corp., 6.45%, 3/15/37 | | 300,000 | | | 386,289 | |
| Delphi Automotive PLC (A), 3.15%, | | | | | | |
| 11/19/20 | | 200,000 | | | 204,145 | |
| DR Horton Inc., 3.75%, 3/1/19 | | 50,000 | | | 51,249 | |
| GameStop Corp. (B), 6.75%, 3/15/21 | | 50,000 | | | 51,125 | |
| General Motors Financial Co. Inc., 3.2%, | | | | | | |
| 7/6/21 | | 200,000 | | | 201,771 | |
| Georgia-Pacific LLC (B), 3.163%, 11/15/21 | | 100,000 | | | 102,226 | |
| GLP Capital L.P. / GLP Financing II Inc., | | | | | | |
| 4.875%, 11/1/20 | | 25,000 | | | 26,625 | |
| Harman International Industries Inc., | | | | | | |
| 4.15%, 5/15/25 | | 100,000 | | | 103,478 | |
| Lowe’s Cos. Inc., 2.5%, 4/15/26 | | 100,000 | | | 95,997 | |
| McDonald’s Corp., MTN, 3.5%, 3/1/27 | | 100,000 | | | 101,544 | |
| McDonald’s Corp., MTN, 4.875%, 12/9/45 | | 50,000 | | | 53,854 | |
| Newell Brands Inc., 4.2%, 4/1/26 | | 100,000 | | | 105,106 | |
| Newell Brands Inc., 5.5%, 4/1/46 | | 100,000 | | | 116,281 | |
| Omnicom Group Inc., 3.6%, 4/15/26 | | 200,000 | | | 201,535 | |
| QVC Inc., 3.125%, 4/1/19 | | 200,000 | | | 202,309 | |
| Sirius XM Radio Inc. (B), 6%, 7/15/24 | | 125,000 | | | 133,750 | |
| Toll Brothers Finance Corp., 4%, 12/31/18 | | 50,000 | | | 51,375 | |
| Walgreens Boots Alliance Inc., 4.5%, | | | | | | |
| 11/18/34 | | 150,000 | | | 150,527 | |
| | | | | | 2,764,628 | |
| Consumer Staples - 4.1% | | | | | | |
| Anheuser-Busch InBev Finance Inc., 4.9%, | | | | | | |
| 2/1/46 | | 150,000 | | | 163,868 | |
| Bunge Ltd. Finance Corp., 3.25%, 8/15/26 | | 50,000 | | | 48,895 | |
| CVS Health Corp., 5.125%, 7/20/45 | | 200,000 | | | 223,513 | |
| JM Smucker Co./The, 3.5%, 3/15/25 | | 200,000 | | | 204,361 | |
| Kraft Heinz Foods Co., 3.95%, 7/15/25 | | 150,000 | | | 154,011 | |
| Molson Coors Brewing Co., 2.1%, 7/15/21 | | 100,000 | | | 98,150 | |
| | | | | | 892,798 | |
| Energy - 13.5% | | | | | | |
| Antero Resources Corp., 5.625%, 6/1/23 | | 50,000 | | | 51,437 | |
| Boardwalk Pipelines L.P., 4.45%, 7/15/27 | | 100,000 | | | 102,305 | |
| BP Capital Markets PLC (A), 3.119%, | | | | | | |
| 5/4/26 | | 100,000 | | | 99,033 | |
| Chevron Corp., 3.191%, 6/24/23 | | 200,000 | | | 206,549 | |
| ConocoPhillips Co., 4.15%, 11/15/34 | | 75,000 | | | 74,750 | |
| Devon Energy Corp., 5.6%, 7/15/41 | | 100,000 | | | 106,948 | |
| Energy Transfer Partners L.P., 5.2%, 2/1/22 | | 300,000 | | | 324,734 | |
| EnLink Midstream Partners L.P., 4.85%, | | | | | | |
| 7/15/26 | | 50,000 | | | 52,542 | |
| Enterprise Products Operating LLC, 4.45%, | | | | | | |
| 2/15/43 | | 200,000 | | | 195,248 | |
| Exxon Mobil Corp., 4.114%, 3/1/46 | | 50,000 | | | 52,254 | |
| Helmerich & Payne International Drilling | | | | | | |
| Co., 4.65%, 3/15/25 | | 100,000 | | | 104,946 | |
| Kinder Morgan Inc. (B), 5%, 2/15/21 | | 50,000 | | | 53,654 | |
| Marathon Oil Corp., 2.7%, 6/1/20 | | 200,000 | | | 199,451 | |
| Marathon Petroleum Corp., 5.125%, | | | | | | |
| 3/1/21 | | 250,000 | | | 271,227 | |
| Phillips 66, 4.65%, 11/15/34 | | 100,000 | | | 102,824 | |
| Phillips 66 Partners L.P., 3.605%, 2/15/25 | | 200,000 | | | 198,483 | |
| Schlumberger Holdings Corp. (B), 2.35%, | | | | | | |
| 12/21/18 | | 200,000 | | | 201,429 | |
| Valero Energy Corp., 6.625%, 6/15/37 | | 350,000 | | | 416,025 | |
| Williams Partners L.P. / ACMP Finance | | | | | | |
| Corp., 4.875%, 5/15/23 | | 100,000 | | | 103,000 | |
| | | | | | 2,916,839 | |
| Financials - 30.2% | | | | | | |
| Banks - 18.2% | | | | | | |
| Bank of America Corp., MTN, 2.503%, | | | | | | |
| 10/21/22 | | 200,000 | | | 196,245 | |
| Bank of America Corp., MTN, 3.3%, | | | | | | |
| 1/11/23 | | 200,000 | | | 203,312 | |
| Bank of Montreal, MTN (A), 1.9%, 8/27/21 | | 100,000 | | | 98,297 | |
| Capital One Financial Corp., 2.45%, | | | | | | |
| 4/24/19 | | 300,000 | | | 301,774 | |
| Citigroup Inc., 2.75%, 4/25/22 | | 100,000 | | | 99,705 | |
| Discover Bank, 3.45%, 7/27/26 | | 100,000 | | | 97,339 | |
| Goldman Sachs Group Inc./The, 5.75%, | | | | | | |
| 1/24/22 | | 100,000 | | | 112,822 | |
| Goldman Sachs Group Inc./The, 3.625%, | | | | | | |
| 1/22/23 | | 200,000 | | | 206,612 | |
| Goldman Sachs Group Inc./The, 3.5%, | | | | | | |
| 11/16/26 | | 200,000 | | | 197,531 | |
| Huntington National Bank/The, 2.2%, | | | | | | |
| 4/1/19 | | 300,000 | | | 301,100 | |
| JPMorgan Chase & Co., 4.25%, 10/15/20 | | 100,000 | | | 106,423 | |
| JPMorgan Chase & Co., 2.972%, 1/15/23 | | 200,000 | | | 201,030 | |
| JPMorgan Chase & Co., 3.125%, 1/23/25 | | 200,000 | | | 197,899 | |
| KeyCorp, MTN, 5.1%, 3/24/21 | | 250,000 | | | 273,754 | |
| Morgan Stanley, 2.8%, 6/16/20 | | 200,000 | | | 203,048 | |
| Morgan Stanley, MTN, 3.7%, 10/23/24 | | 200,000 | | | 204,860 | |
| Morgan Stanley, MTN, 3.875%, 1/27/26 | | 100,000 | | | 102,237 | |
| PNC Financial Services Group Inc./The, | | | | | | |
| 3.3%, 3/8/22 | | 100,000 | | | 103,914 | |
| Regions Bank, 2.25%, 9/14/18 | | 250,000 | | | 250,897 | |
| Regions Financial Corp., 3.2%, 2/8/21 | | 250,000 | | | 255,539 | |
| US Bancorp, MTN, 2.35%, 1/29/21 | | 200,000 | | | 201,494 | |
| | | | | | 3,915,832 | |
| Diversified Financial Services - 7.3% | | | | | | |
| AerCap Ireland Capital DAC / AerCap | | | | | | |
| Global Aviation Trust (A), 3.75%, 5/15/19 | | 150,000 | | | 154,303 | |
| Affiliated Managers Group Inc., 4.25%, | | | | | | |
| 2/15/24 | | 300,000 | | | 313,259 | |
| Air Lease Corp., 3.75%, 2/1/22 | | 200,000 | | | 207,058 | |
| Air Lease Corp., 3.625%, 4/1/27 | | 100,000 | | | 99,242 | |
| Brookfield Finance Inc. (A), 4.25%, 6/2/26 | | 200,000 | | | 205,144 | |
| CBOE Holdings Inc., 3.65%, 1/12/27 | | 150,000 | | | 151,447 | |
| Nasdaq Inc., 3.85%, 6/30/26 | | 50,000 | | | 50,425 | |
| Raymond James Financial Inc., 3.625%, | | | | | | |
| 9/15/26 | | 100,000 | | | 99,772 | |
| Synchrony Financial, 3.75%, 8/15/21 | | 100,000 | | | 103,469 | |
| Synchrony Financial, 3.7%, 8/4/26 | | 100,000 | | | 96,117 | |
| TD Ameritrade Holding Corp., 3.3%, | | | | | | |
| 4/1/27 | | 100,000 | | | 100,128 | |
| | | | | | 1,580,364 | |
| Insurance - 4.7% | | | | | | |
| American International Group Inc., | | | | | | |
| 3.875%, 1/15/35 | | 200,000 | | | 186,467 | |
| Berkshire Hathaway Inc., 3.125%, | | | | | | |
| 3/15/26 | | 50,000 | | | 50,428 | |
| Liberty Mutual Group Inc. (B), 4.25%, | | | | | | |
| 6/15/23 | | 100,000 | | | 106,442 | |
| MetLife Inc., 3.6%, 4/10/24 | | 100,000 | | | 104,225 | |
| New York Life Global Funding (B), 1.95%, | | | | | | |
| 2/11/20 | | 200,000 | | | 199,593 | |
| Old Republic International Corp., 3.875%, | | | | | | |
| 8/26/26 | | 50,000 | | | 49,594 | |
| Prudential Financial Inc., MTN, 3.5%, | | | | | | |
| 5/15/24 | | 300,000 | | | 311,314 | |
| | | | | | 1,008,063 | |
| | | | | | 6,504,259 | |
| Health Care - 4.2% | | | | | | |
| AbbVie Inc., 4.7%, 5/14/45 | | 100,000 | | | 100,684 | |
| AbbVie Inc., 4.45%, 5/14/46 | | 100,000 | | | 97,475 | |
| Actavis Funding SCS (A), 4.55%, 3/15/35 | | 130,000 | | | 130,912 | |
| Express Scripts Holding Co., 4.75%, | | | | | | |
| 11/15/21 | | 200,000 | | | 215,623 | |
| Express Scripts Holding Co., 4.8%, 7/15/46 | | 50,000 | | | 48,605 | |
| HCA Inc., 3.75%, 3/15/19 | | 100,000 | | | 102,125 | |
| UnitedHealth Group Inc., 2.875%, 3/15/23 | | 200,000 | | | 202,412 | |
| | | | | | 897,836 | |
| Industrials - 10.6% | | | | | | |
| Burlington Northern Santa Fe LLC, 4.45%, | | | | | | |
| 3/15/43 | | 200,000 | | | 211,883 | |
| Caterpillar Inc., 5.2%, 5/27/41 | | 20,000 | | | 23,366 | |
| CRH America Inc. (B), 3.875%, 5/18/25 | | 200,000 | | | 206,696 | |
| Equifax Inc., 2.3%, 6/1/21 | | 100,000 | | | 99,208 | |
| Fortive Corp. (B), 2.35%, 6/15/21 | | 100,000 | | | 98,979 | |
| General Dynamics Corp., 1.875%, 8/15/23 | | 100,000 | | | 96,107 | |
| General Electric Co., MTN, 6.75%, 3/15/32 | | 300,000 | | | 410,698 | |
| International Lease Finance Corp., | | | | | | |
| 8.875%, 9/1/17 | | 100,000 | | | 102,383 | |
| Lockheed Martin Corp., 2.9%, 3/1/25 | | 200,000 | | | 198,479 | |
| Masco Corp., 4.375%, 4/1/26 | | 100,000 | | | 105,760 | |
| Norfolk Southern Corp., 3.25%, 12/1/21 | | 200,000 | | | 206,030 | |
| Textron Inc., 3.875%, 3/1/25 | | 200,000 | | | 204,397 | |
| United Rentals North America Inc., | | | | | | |
| 6.125%, 6/15/23 | | 100,000 | | | 104,500 | |
| Verisk Analytics Inc., 4%, 6/15/25 | | 200,000 | | | 204,590 | |
| | | | | | 2,273,076 | |
| Information Technology - 7.5% | | | | | | |
| Analog Devices Inc., 5.3%, 12/15/45 | | 50,000 | | | 56,081 | |
| Apple Inc., 2.25%, 2/23/21 | | 200,000 | | | 201,984 | |
| Broadridge Financial Solutions Inc., 3.4%, | | | | | | |
| 6/27/26 | | 100,000 | | | 98,649 | |
| CA Inc., 4.7%, 3/15/27 | | 150,000 | | | 157,821 | |
| CDW LLC / CDW Finance Corp., 5%, 9/1/23 | | 50,000 | | | 51,375 | |
| Cisco Systems Inc., 2.2%, 2/28/21 | | 150,000 | | | 150,793 | |
| Dell International LLC / EMC Corp. (B), | | | | | | |
| 8.35%, 7/15/46 | | 75,000 | | | 97,071 | |
| Fidelity National Information Services Inc., | | | | | | |
| 3%, 8/15/26 | | 100,000 | | | 95,815 | |
| Fiserv Inc., 2.7%, 6/1/20 | | 200,000 | | | 202,593 | |
| Intel Corp., 4.9%, 7/29/45 | | 100,000 | | | 113,241 | |
| Microsoft Corp., 1.55%, 8/8/21 | | 100,000 | | | 98,015 | |
| Microsoft Corp., 3.5%, 2/12/35 | | 100,000 | | | 97,936 | |
| NVIDIA Corp., 2.2%, 9/16/21 | | 100,000 | | | 98,745 | |
| Oracle Corp., 4%, 7/15/46 | | 100,000 | | | 97,726 | |
| | | | | | 1,617,845 | |
| Materials - 3.6% | | | | | | |
| Agrium Inc. (A), 3.375%, 3/15/25 | | 200,000 | | | 199,172 | |
| Arconic Inc., 5.125%, 10/1/24 | | 50,000 | | | 52,375 | |
| Dow Chemical Co./The, 4.125%, 11/15/21 | | 200,000 | | | 212,455 | |
| Packaging Corp. of America, 3.65%, | | | | | | |
| 9/15/24 | | 300,000 | | | 304,178 | |
| | | | | | 768,180 | |
| Real Estate - 3.4% | | | | | | |
| Boston Properties L.P., 3.65%, 2/1/26 | | 100,000 | | | 100,431 | |
| Iron Mountain Inc. (B), 4.375%, 6/1/21 | | 100,000 | | | 103,750 | |
| Simon Property Group L.P., 4.125%, | | | | | | |
| 12/1/21 | | 200,000 | | | 213,270 | |
| WP Carey Inc., 4.6%, 4/1/24 | | 200,000 | | | 208,588 | |
| WP Carey Inc., 4.25%, 10/1/26 | | 100,000 | | | 100,352 | |
| | | | | | 726,391 | |
See accompanying Notes to Financial Statements.
17
| Madison Funds | April 30, 2017 |
| |
|
| Madison Corporate Bond Fund Portfolio of Investments (unaudited) - continued |
| | | | | | |
| | Par Value | | Value (Note 2) |
| CORPORATE NOTES AND BONDS - continued | | | | |
| Telecommunication Services - 5.2% | | | | | | |
| AT&T Inc., 5%, 3/1/21 | $ | 300,000 | | $ | 325,696 | |
| AT&T Inc., 4.75%, 5/15/46 | | 75,000 | | | 70,254 | |
| Harris Corp., 5.054%, 4/27/45 | | 200,000 | | | 219,707 | |
| Sprint Spectrum Co. LLC / Sprint Spectrum | | | | | | |
| Co. II LLC / Sprint Spectrum Co. III LLC (B), | | | | | | |
| 3.36%, 9/20/21 | | 100,000 | | | 100,875 | |
| Verizon Communications Inc., 5.15%, | | | | | | |
| 9/15/23 | | 200,000 | | | 221,339 | |
| Verizon Communications Inc., 4.4%, | | | | | | |
| 11/1/34 | | 200,000 | | | 191,416 | |
| | | | | | 1,129,287 | |
| Utilities - 0.4% | | | | | | |
| Duke Energy Corp., 3.75%, 9/1/46 | | 100,000 | | | 91,599 | |
| Total Corporate Notes and Bonds | | | | | | |
| (Cost $20,028,865) | | | | | 20,582,738 | |
| LONG TERM MUNICIPAL BONDS - 3.0% | | | | | | |
| County of Palm Beach FL Revenue, 5%, | | | | | | |
| 11/1/33 | | 200,000 | | | 210,560 | |
| County of Pasco FL Water & Sewer | | | | | | |
| Revenue, Series B, 6.76%, 10/1/39 | | 200,000 | | | 222,166 | |
| Las Vegas Valley Water District, General | | | | | | |
| Obligation, Series A, 7.1%, 6/1/39 | | 200,000 | | | 219,512 | |
| Total Long Term Municipal Bonds | | | | | | |
| (Cost $648,260) | | | | | 652,238 | |
| | | Shares | | | | |
| SHORT-TERM INVESTMENTS – 0.8% | | | | | | |
| State Street Institutional U.S. Government | | | | | | |
| Money Market Fund, 0.68%, Premier Class | | 171,335 | | | 171,335 | |
| Total Short-Term Investments | | | | | | |
| (Cost $171,335) | | | | | 171,335 | |
| | | | | | | |
| TOTAL INVESTMENTS - 99.3% | | | | | | |
| (Cost $20,848,460**) | | | | $ | 21,406,311 | |
| NET OTHER ASSETS AND LIABILITIES - 0.7% | | | | | 146,358 | |
| TOTAL NET ASSETS - 100.0% | | | | $ | 21,552,669 | |
| | |
| ** | | Aggregate cost for Federal tax purposes was $20,848,460. |
| (A) | | Notes and bonds, issued by foreign entities, denominated in U.S. dollars. The aggregate of these securities is 5.1% of total net assets. |
|
|
| (B) | | Security sold within terms of a private placement memorandum exempt from registration under section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other “qualified institutional buyers.” |
|
|
|
| | |
| MTN | | Medium Term Note. |
| PLC | | Public Limited Company. |
|
| Madison High Income Fund Portfolio of Investments (unaudited) |
| | | | | | |
| | Par Value | | Value (Note 2) |
| CORPORATE NOTES AND BONDS - 84.6% | | | | |
| Consumer Discretionary - 23.3% | | | | | | |
| Altice Financing S.A. (A) (B), 7.5%, | | | | | | |
| 5/15/26 | $ | 250,000 | | $ | 270,000 | |
| Cablevision Systems Corp., 5.875%, | | | | | | |
| 9/15/22 | | 200,000 | | | 205,250 | |
| CCO Holdings LLC / CCO Holdings Capital | | | | | | |
| Corp. (A), 5.875%, 4/1/24 | | 300,000 | | | 321,375 | |
| Deck Chassis Acquisition Inc. (A), 10%, | | | | | | |
| 6/15/23 | | 150,000 | | | 164,625 | |
| Diamond Resorts International Inc. (A), | | | | | | |
| 7.75%, 9/1/23 | | 250,000 | | | 266,250 | |
| DISH DBS Corp., 6.75%, 6/1/21 | | 200,000 | | | 217,500 | |
| GameStop Corp. (A), 6.75%, 3/15/21 | | 325,000 | | | 332,312 | |
| Group 1 Automotive Inc., 5%, 6/1/22 | | 300,000 | | | 303,750 | |
| Jack Ohio Finance LLC / Jack Ohio Finance | | | | | | |
| 1 Corp. (A), 6.75%, 11/15/21 | | 400,000 | | | 418,000 | |
| Nexteer Automotive Group Ltd. (A) (B), | | | | | | |
| 5.875%, 11/15/21 | | 250,000 | | | 260,000 | |
| Outfront Media Capital LLC / Outfront | | | | | | |
| Media Capital Corp., 5.625%, 2/15/24 | | 500,000 | | | 525,000 | |
| Penske Automotive Group Inc., 5.75%, | | | | | | |
| 10/1/22 | | 250,000 | | | 258,750 | |
| PetSmart Inc. (A), 7.125%, 3/15/23 | | 250,000 | | | 228,438 | |
| Pinnacle Entertainment Inc. (A), 5.625%, | | | | | | |
| 5/1/24 | | 250,000 | | | 258,125 | |
| Scientific Games International Inc., | | | | | | |
| 6.25%, 9/1/20 | | 500,000 | | | 481,250 | |
| Sirius XM Radio Inc. (A), 4.625%, 5/15/23 | | 250,000 | | | 254,375 | |
| Sugarhouse HSP Gaming Prop Mezz L.P. / | | | | | | |
| Sugarhouse HSP Gaming Finance Corp. (A) | | | | | | |
| (C), 5.875%, 5/15/25 | | 100,000 | | | 100,125 | |
| Univision Communications Inc. (A), | | | | | | |
| 5.125%, 5/15/23 | | 200,000 | | | 203,250 | |
| Viking Cruises Ltd. (A) (B), 8.5%, 10/15/22 | | 375,000 | | | 391,875 | |
| | | | | | 5,460,250 | |
| Consumer Staples - 5.8% | | | | | | |
| ACCO Brands Corp. (A), 5.25%, 12/15/24 | | 250,000 | | | 257,500 | |
| Avon International Operations Inc. (A), | | | | | | |
| 7.875%, 8/15/22 | | 100,000 | | | 107,500 | |
| Avon Products Inc., 6.6%, 3/15/20 | | 250,000 | | | 254,063 | |
| Cott Beverages Inc., 5.375%, 7/1/22 | | 250,000 | | | 259,062 | |
| Dean Foods Co. (A), 6.5%, 3/15/23 | | 200,000 | | | 211,000 | |
| Post Holdings Inc. (A), 5.5%, 3/1/25 | | 250,000 | | | 261,250 | |
| | | | | | 1,350,375 | |
| Energy - 9.6% | | | | | | |
| American Midstream Partners L.P. / | | | | | | |
| American Midstream Finance Corp. (A), | | | | | | |
| 8.5%, 12/15/21 | | 250,000 | | | 254,375 | |
| Carrizo Oil & Gas Inc., 6.25%, 4/15/23 | | 250,000 | | | 251,875 | |
| Murphy Oil USA Inc., 5.625%, 5/1/27 | | 250,000 | | | 256,250 | |
| QEP Resources Inc., 5.375%, 10/1/22 | | 300,000 | | | 296,250 | |
| SM Energy Co., 6.75%, 9/15/26 | | 100,000 | | | 100,750 | |
| Southern Star Central Corp. (A), 5.125%, | | | | | | |
| 7/15/22 | | 300,000 | | | 303,000 | |
| Tesoro Logistics L.P. / Tesoro Logistics | | | | | | |
| Finance Corp., 6.375%, 5/1/24 | | 250,000 | | | 273,125 | |
| Unit Corp., 6.625%, 5/15/21 | | 525,000 | | | 522,375 | |
| | | | | | 2,258,000 | |
| Financials - 8.7% | | | | | | |
| Donnelley Financial Solutions Inc., 8.25%, | | | | | | |
| 10/15/24 | | 500,000 | | | 523,750 | |
| Equinix Inc., 5.875%, 1/15/26 | | 100,000 | | | 107,750 | |
| FBM Finance Inc. (A), 8.25%, 8/15/21 | | 250,000 | | | 270,000 | |
| Iron Mountain Inc., 5.75%, 8/15/24 | | 350,000 | | | 359,187 | |
| Nationstar Mortgage LLC / Nationstar | | | | | | |
| Capital Corp., 6.5%, 7/1/21 | | 300,000 | | | 304,500 | |
| Quicken Loans Inc. (A), 5.75%, 5/1/25 | | 250,000 | | | 252,500 | |
| Solera LLC / Solera Finance Inc. (A), | | | | | | |
| 10.5%, 3/1/24 | | 200,000 | | | 228,250 | |
| | | | | | 2,045,937 | |
| Health Care - 3.3% | | | | | | |
| Acadia Healthcare Co. Inc., 5.125%, | | | | | | |
| 7/1/22 | | 250,000 | | | 252,813 | |
| HCA Inc., 5.875%, 2/15/26 | | 100,000 | | | 106,250 | |
| Mallinckrodt International Finance S.A. | | | | | | |
| (B), 4.75%, 4/15/23 | | 300,000 | | | 255,750 | |
| Valeant Pharmaceuticals International | | | | | | |
| Inc. (A) (B), 5.625%, 12/1/21 | | 200,000 | | | 153,750 | |
| | | | | | 768,563 | |
| Industrials - 10.6% | | | | | | |
| Aircastle Ltd. (B), 5%, 4/1/23 | | 100,000 | | | 106,750 | |
| Avis Budget Car Rental LLC / Avis Budget | | | | | | |
| Finance Inc. (A), 5.25%, 3/15/25 | | 250,000 | | | 235,625 | |
| Bombardier Inc. (A) (B), 8.75%, 12/1/21 | | 250,000 | | | 278,125 | |
| Bombardier Inc. (A) (B), 6.125%, 1/15/23 | | 175,000 | | | 174,562 | |
| Brand Energy & Infrastructure Services | | | | | | |
| Inc. (A), 8.5%, 12/1/21 | | 250,000 | | | 265,625 | |
| Herc Rentals Inc. (A), 7.5%, 6/1/22 | | 270,000 | | | 293,625 | |
| Mueller Industries Inc., 6%, 3/1/27 | | 250,000 | | | 250,000 | |
| Nielsen Finance LLC / Nielsen Finance Co. | | | | | | |
| (A), 5%, 4/15/22 | | 200,000 | | | 205,750 | |
| Prime Security Services Borrower LLC / | | | | | | |
| Prime Finance Inc. (A), 9.25%, 5/15/23 | | 125,000 | | | 136,563 | |
| Standard Industries Inc. (A), 5.375%, | | | | | | |
| 11/15/24 | | 250,000 | | | 260,625 | |
| Summit Materials LLC / Summit Materials | | | | | | |
| Finance Corp., 8.5%, 4/15/22 | | 250,000 | | | 280,625 | |
| | | | | | 2,487,875 | |
| Information Technology - 7.7% | | | | | | |
| Alliance Data Systems Corp. (A), 6.375%, | | | | | | |
| 4/1/20 | | 400,000 | | | 406,500 | |
| Alliance Data Systems Corp. (A), 5.875%, | | | | | | |
| 11/1/21 | | 100,000 | | | 103,500 | |
| Belden Inc. (A), 5.5%, 9/1/22 | | 500,000 | | | 512,500 | |
| Diebold Nixdorf Inc., 8.5%, 4/15/24 | | 395,000 | | | 440,425 | |
| Hughes Satellite Systems Corp., 7.625%, | | | | | | |
| 6/15/21 | | 150,000 | | | 169,372 | |
| Western Digital Corp. (A), 7.375%, 4/1/23 | | 150,000 | | | 164,250 | |
| | | | | | 1,796,547 | |
| Materials - 5.0% | | | | | | |
| ARD Finance S.A., PIK (A) (B), 7.125%, | | | | | | |
| 9/15/23 | | 250,000 | | | 259,375 | |
| Berry Plastics Corp., 5.5%, 5/15/22 | | 275,000 | | | 287,375 | |
| Rayonier AM Products Inc. (A), 5.5%, | | | | | | |
| 6/1/24 | | 550,000 | | | 504,625 | |
| US Concrete Inc., 6.375%, 6/1/24 | | 125,000 | | | 130,625 | |
| | | | | | 1,182,000 | |
See accompanying Notes to Financial Statements.
18
| Madison Funds | April 30, 2017 |
| |
|
| Madison High Income Fund Portfolio of Investments (unaudited) - continued |
| | | | | | |
| | Par Value | | Value (Note 2) |
| CORPORATE NOTES AND BONDS - continued | | | | |
| Telecommunication Services - 5.1% | | | | | | |
| Altice Luxembourg S.A. (A) (B), 7.625%, | | | | | | |
| 2/15/25 | $ | 250,000 | | $ | 266,875 | |
| Frontier Communications Corp., 6.25%, | | | | | | |
| 9/15/21 | | 400,000 | | | 371,000 | |
| Inmarsat Finance PLC (A) (B), 6.5%, | | | | | | |
| 10/1/24 | | 300,000 | | | 317,250 | |
| Sprint Spectrum Co. LLC / Sprint Spectrum | | | | | | |
| Co. II LLC / Sprint Spectrum Co. III LLC (A), | | | | | | |
| 3.36%, 9/20/21 | | 250,000 | | | 252,188 | |
| | | | | | 1,207,313 | |
| Utilities - 5.5% | | | | | | |
| AES Corp., 5.5%, 3/15/24 | | 400,000 | | | 411,000 | |
| AmeriGas Partners L.P. / AmeriGas Finance | | | | | | |
| Corp., 5.5%, 5/20/25 | | 250,000 | | | 252,500 | |
| Calpine Corp., 5.5%, 2/1/24 | | 250,000 | | | 241,250 | |
| Dynegy Inc., 7.625%, 11/1/24 | | 150,000 | | | 137,250 | |
| NRG Energy Inc., 6.25%, 5/1/24 | | 200,000 | | | 199,300 | |
| Talen Energy Supply LLC (A), 4.625%, | | | | | | |
| 7/15/19 | | 45,000 | | | 44,325 | |
| | | | | | 1,285,625 | |
| Total Corporate Notes and Bonds | | | | | | |
| (Cost $19,126,640) | | | | | 19,842,485 | |
| | Shares | | | | |
| MUTUAL FUNDS - 2.7% | | | | | | |
| BlackRock Corporate High Yield Fund Inc. | | 32,000 | | | 360,640 | |
| iShares iBoxx $ High Yield Corporate | | | | | | |
| Bond ETF | | 3,000 | | | 264,360 | |
| Total Mutual Funds | | | | | | |
| Cost $608,475) | | | | | 625,000 | |
| SHORT-TERM INVESTMENTS - 10.2% | | | | | | |
| State Street Institutional U.S. Government | | | | | | |
| Money Market Fund, 0.68%, Premier Class | | 2,400,940 | | | 2,400,940 | |
| Total Short-Term Investments | | | | | | |
| (Cost $2,400,940) | | | | | 2,400,940 | |
| | | | | | | |
| TOTAL INVESTMENTS - 97.5% | | | | | | |
| (Cost $22,136,055**) | | | | | 22,868,425 | |
| NET OTHER ASSETS AND LIABILITIES - 2.5% | | | | | 581,873 | |
| TOTAL NET ASSETS - 100.0% | | | | $ | 23,450,298 | |
| | |
| ** | | Aggregate cost for Federal tax purposes was $22,136,055. |
| (A) | | Security sold within terms of a private placement memorandum exempt from registration under section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other “qualified institutional buyers.” |
|
|
|
| (B) | | Notes and bonds, issued by foreign entities, denominated in U.S. dollars. The aggregate of these securities is 11.7% of total net assets. |
|
|
| (C) | | Security purchased on a delayed delivery or when-issued basis. Rate shown is at issue date. |
|
| ETF | | Exchange Traded Fund. |
| PIK | | Payment in Kind. |
| PLC | | Public Limited Company. |
|
| Madison Diversified Income Fund Portfolio of Investments (unaudited) |
| | | | | | |
| | | Shares | | Value (Note 2) | |
| COMMON STOCKS - 58.8% | | | | | | |
| Consumer Discretionary - 5.2% | | | | | | |
| Carnival Corp. | | 43,000 | | $ | 2,656,110 | |
| Home Depot Inc./The | | 15,300 | | | 2,388,330 | |
| McDonald’s Corp. | | 13,500 | | | 1,889,055 | |
| Omnicom Group Inc. | | 17,000 | | | 1,396,040 | |
| | | | | | 8,329,535 | |
| Consumer Staples - 4.6% | | | | | | |
| JM Smucker Co./The | | 12,000 | | | 1,520,640 | |
| Nestle S.A., ADR | | 25,000 | | | 1,924,975 | |
| PepsiCo Inc. | | 14,500 | | | 1,642,560 | |
| Procter & Gamble Co./The | | 25,000 | | | 2,183,250 | |
| | | | | | 7,271,425 | |
| Energy - 4.2% | | | | | | |
| Chevron Corp. | | 17,700 | | | 1,888,590 | |
| Exxon Mobil Corp. | | 33,500 | | | 2,735,275 | |
| Schlumberger Ltd. | | 29,000 | | | 2,105,110 | |
| | | | | | 6,728,975 | |
| Financials - 10.0% | | | | | | |
| BB&T Corp. | | 33,500 | | | 1,446,530 | |
| Chubb Ltd. | | 11,000 | | | 1,509,750 | |
| CME Group Inc. | | 21,500 | | | 2,498,085 | |
| Northern Trust Corp. | | 16,000 | | | 1,440,000 | |
| PNC Financial Services Group Inc./The | | 22,000 | | | 2,634,500 | |
| Travelers Cos. Inc./The | | 16,500 | | | 2,007,390 | |
| US Bancorp | | 63,500 | | | 3,256,280 | |
| Wells Fargo & Co. | | 22,000 | | | 1,184,480 | |
| | | | | | 15,977,015 | |
| Health Care - 8.0% | | | | | | |
| Amgen Inc. | | 11,000 | | | 1,796,520 | |
| Johnson & Johnson | | 24,000 | | | 2,963,280 | |
| Medtronic PLC | | 21,600 | | | 1,794,744 | |
| Merck & Co. Inc. | | 35,000 | | | 2,181,550 | |
| Novartis AG, ADR | | 22,500 | | | 1,733,175 | |
| Pfizer Inc. | | 69,000 | | | 2,340,480 | |
| | | | | | 12,809,749 | |
| Industrials - 10.3% | | | | | | |
| 3M Co. | | 10,500 | | | 2,056,215 | |
| Boeing Co./The | | 12,700 | | | 2,347,341 | |
| Caterpillar Inc. | | 13,000 | | | 1,329,380 | |
| Emerson Electric Co. | | 31,500 | | | 1,898,820 | |
| General Electric Co. | | 81,500 | | | 2,362,685 | |
| Union Pacific Corp. | | 13,000 | | | 1,455,480 | |
| United Parcel Service Inc., Class B | | 19,700 | | | 2,116,962 | |
| United Technologies Corp. | | 24,000 | | | 2,855,760 | |
| | | | | | 16,422,643 | |
| Information Technology - 10.9% | | | | | | |
| Accenture PLC, Class A | | 15,000 | | | 1,819,500 | |
| Apple Inc. | | 10,500 | | | 1,508,325 | |
| Automatic Data Processing Inc. | | 10,000 | | | 1,044,900 | |
| Cisco Systems Inc. | | 85,500 | | | 2,912,985 | |
| Microsoft Corp. | | 50,000 | | | 3,423,000 | |
| TE Connectivity Ltd. | | 31,500 | | | 2,437,155 | |
| Texas Instruments Inc. | | 31,000 | | | 2,454,580 | |
| Xilinx Inc. | | 27,500 | | | 1,735,525 | |
| | | | | | 17,335,970 | |
| Materials - 2.3% | | | | | | |
| Monsanto Co. | | 10,000 | | | 1,166,100 | |
| Praxair Inc. | | 19,500 | | | 2,437,110 | |
| | | | | | 3,603,210 | |
| Telecommunication Service - 1.4% | | | | | | |
| Verizon Communications Inc. | | 50,500 | | | 2,318,455 | |
| | |
| Utilities - 1.9% | | | | | | |
| Duke Energy Corp. | | 15,870 | | | 1,309,275 | |
| NextEra Energy Inc. | | 13,500 | | | 1,803,060 | |
| | | | | | 3,112,335 | |
| Total Common Stocks | | | | | | |
| (Cost $69,396,194) | | | | | 93,909,312 | |
| ASSET BACKED SECURITIES - 1.2% | | | | | | |
| ABSC Long Beach Home Equity Loan Trust, | | | | | | |
| Series 2000-LB1, Class AF5 (A), 7.992%, | | | | | | |
| 9/21/30 | | 98,971 | | | 99,103 | |
| Ally Master Owner Trust, Series 2014-4, | | | | | | |
| Class A2, 1.43%, 6/17/19 | | 225,000 | | | 225,036 | |
| American Express Credit Account Master | | | | | | |
| Trust, Series 2014-3, Class A, 1.49%, | | | | | | |
| 4/15/20 | | 250,000 | | | 250,171 | |
| CarMax Auto Owner Trust, Series 2017-1, | | | | | | |
| Class A2, 1.54%, 2/18/20 | | 400,000 | | | 400,086 | |
| Chase Issuance Trust, Series 2017-A1, | | | | | | |
| Class A (A), 1.294%, 1/18/22 | | 200,000 | | | 200,708 | |
| CNH Equipment Trust, Series 2014-A, Class | | | | | | |
| A3, 0.84%, 5/15/19 | | 7,660 | | | 7,658 | |
| Porsche Innovative Lease Owner Trust, | | | | | | |
| Series 2015-1, Class A4 (B), 1.43%, | | | | | | |
| 5/21/21 | | 300,000 | | | 299,968 | |
| Santander Drive Auto Receivables Trust, | | | | | | |
| Series 2013-5, Class C, 2.25%, 6/17/19 | | 115,174 | | | 115,457 | |
| Santander Drive Auto Receivables Trust, | | | | | | |
| Series 2013-5, Class D, 2.73%, 10/15/19 | | 75,000 | | | 75,659 | |
| Santander Drive Auto Receivables | | | | | | |
| Trust, Series 2013-A, Class C (B), 3.12%, | | | | | | |
| 10/15/19 | | 42,488 | | | 42,675 | |
| Santander Drive Auto Receivables Trust, | | | | | | |
| Series 2013-4, Class C, 3.25%, 1/15/20 | | 93,809 | | | 94,257 | |
| Volvo Financial Equipment LLC, Series | | | | | | |
| 2014-1A, Class A3 (B), 0.82%, 4/16/18 | | 1,812 | | | 1,811 | |
| Total Asset Backed Securities | | | | | | |
| (Cost $1,815,055) | | | | | 1,812,589 | |
| COLLATERALIZED MORTGAGE | | | | | | |
| OBLIGATIONS - 1.1% | | | | | | |
| Fannie Mae REMICS, Series 2011-31, Class | | | | | | |
| DB, 3.5%, 4/25/31 | | 200,000 | | | 211,355 | |
| Fannie Mae REMICS, Series 2011-36, Class | | | | | | |
| QB, 4%, 5/25/31 | | 250,000 | | | 269,919 | |
| Fannie Mae REMICS, Series 2005-79, Class | | | | | | |
| LT, 5.5%, 9/25/35 | | 113,240 | | | 126,859 | |
See accompanying Notes to Financial Statements.
19
| Madison Funds | April 30, 2017 |
| |
|
| Madison Diversified Income Fund Portfolio of Investments (unaudited) - continued |
| | | | | | |
| | Par Value | | Value (Note 2) | |
| COLLATERALIZED MORTGAGE | | | | | | |
| OBLIGATIONS - continued | | | | | | |
| Fannie Mae REMICS, Series 2011-101, | | | | | | |
| Class NC, 2.5%, 4/25/40 | $ | 417,041 | | $ | 420,382 | |
| Fannie Mae REMICS, Series 2016-21, Class | | | | | | |
| BA, 3%, 3/25/42 | | 338,800 | | | 347,053 | |
| Freddie Mac REMICS, Series 3825, Class | | | | | | |
| CB, 3.5%, 3/15/26 | | 406,565 | | | 428,128 | |
| Total Collateralized Mortgage | | | | | | |
| Obligations (Cost $1,823,064) | | | | | 1,803,696 | |
| | | | | | | |
| COMMERCIAL MORTGAGE-BACKED | | | | | | |
| SECURITIES - 0.6% | | | | | | |
| Bear Stearns Commercial Mortgage | | | | | | |
| Securities Trust, Series 2007-PW17, Class | | | | | | |
| A1A (A), 5.65%, 6/11/50 | | 221,866 | | | 223,267 | |
| Fannie Mae-Aces, Series 2016-M2, Class | | | | | | |
| X2, IO (A), 1.207%, 1/25/23 | | 3,885,224 | | | 193,207 | |
| Fannie Mae-Aces, Series 2013-M12, Class | | | | | | |
| APT (A), 2.474%, 3/25/23 | | 269,031 | | | 270,354 | |
| FREMF Mortgage Trust, Series 2012-K708, | | | | | | |
| Class B (A) (B), 3.883%, 2/25/45 | | 300,000 | | | 306,648 | |
| Total Commercial Mortgage-Backed | | | | | | |
| Securities (Cost $1,011,124) | | | | | 993,476 | |
| | | | | | | |
| CORPORATE NOTES AND BONDS - 13.3% | | | | |
| | | | | | | |
| Consumer Discretionary - 2.9% | | | | | | |
| Advance Auto Parts Inc., 4.5%, 12/1/23 | | 500,000 | | | 531,354 | |
| Amazon.com Inc., 3.3%, 12/5/21 | | 200,000 | | | 208,103 | |
| Charter Communications Operating LLC | | | | | | |
| / Charter Communications Operating | | | | | | |
| Capital Corp., 4.464%, 7/23/22 | | 400,000 | | | 424,810 | |
| ERAC USA Finance LLC (B), 6.7%, 6/1/34 | | 150,000 | | | 182,317 | |
| Ford Motor Credit Co. LLC, MTN, 2.943%, | | | | | | |
| 1/8/19 | | 300,000 | | | 303,752 | |
| GameStop Corp. (B), 6.75%, 3/15/21 | | 100,000 | | | 102,250 | |
| General Motors Financial Co. Inc., 3.2%, | | | | | | |
| 7/6/21 | | 300,000 | | | 302,657 | |
| GLP Capital L.P. / GLP Financing II Inc., | | | | | | |
| 4.875%, 11/1/20 | | 125,000 | | | 133,125 | |
| Lennar Corp., 4.75%, 4/1/21 | | 150,000 | | | 157,853 | |
| Marriott International Inc., 3.125%, | | | | | | |
| 6/15/26 | | 250,000 | | | 243,280 | |
| McDonald’s Corp., MTN, 4.875%, 12/9/45 | | 300,000 | | | 323,126 | |
| Newell Brands Inc., 5.5%, 4/1/46 | | 450,000 | | | 523,263 | |
| Omnicom Group Inc., 3.6%, 4/15/26 | | 350,000 | | | 352,686 | |
| Priceline Group Inc./The, 3.6%, 6/1/26 | | 250,000 | | | 251,665 | |
| Time Warner Inc., 4.75%, 3/29/21 | | 400,000 | | | 431,860 | |
| Walgreens Boots Alliance Inc., 4.5%, | | | | | | |
| 11/18/34 | | 155,000 | | | 155,545 | |
| | | | | | 4,627,646 | |
| Consumer Staples - 0.6% | | | | | | |
| Anheuser-Busch InBev Finance Inc., 4.9%, | | | | | | |
| 2/1/46 | | 250,000 | | | 273,113 | |
| Bunge Ltd. Finance Corp., 3.25%, 8/15/26 | | 250,000 | | | 244,475 | |
| CVS Health Corp., 5.125%, 7/20/45 | | 250,000 | | | 279,391 | |
| Kraft Heinz Foods Co., 4.375%, 6/1/46 | | 200,000 | | | 190,287 | |
| | | | | | 987,266 | |
| Energy - 2.6% | | | | | | |
| Antero Resources Corp., 5.625%, 6/1/23 | | 150,000 | | | 154,313 | |
| BP Capital Markets PLC (C), 3.119%, | | | | | | |
| 5/4/26 | | 200,000 | | | 198,065 | |
| ConocoPhillips Co., 4.15%, 11/15/34 | | 500,000 | | | 498,332 | |
| Energy Transfer Partners L.P., 5.2%, 2/1/22 | | 200,000 | | | 216,489 | |
| Enterprise Products Operating LLC, 5.2%, | | | | | | |
| 9/1/20 | | 450,000 | | | 491,322 | |
| Enterprise Products Operating LLC, 3.75%, | | | | | | |
| 2/15/25 | | 300,000 | | | 307,200 | |
| Exxon Mobil Corp., 4.114%, 3/1/46 | | 225,000 | | | 235,141 | |
| Marathon Oil Corp., 6%, 10/1/17 | | 300,000 | | | 305,489 | |
| Marathon Oil Corp., 2.7%, 6/1/20 | | 300,000 | | | 299,176 | |
| Phillips 66, 4.65%, 11/15/34 | | 500,000 | | | 514,121 | |
| Schlumberger Holdings Corp. (B), 4%, | | | | | | |
| 12/21/25 | | 300,000 | | | 315,729 | |
| Valero Energy Corp., 6.625%, 6/15/37 | | 250,000 | | | 297,161 | |
| Williams Partners L.P. / ACMP Finance | | | | | | |
| Corp., 4.875%, 5/15/23 | | 250,000 | | | 257,500 | |
| | | | | | 4,090,038 | |
| Financials - 2.8% | | | | | | |
| Air Lease Corp., 3.75%, 2/1/22 | | 300,000 | | | 310,587 | |
| Air Lease Corp., 3.625%, 4/1/27 | | 200,000 | | | 198,484 | |
| Bank of Montreal, MTN (C), 1.9%, 8/27/21 | | 250,000 | | | 245,743 | |
| Berkshire Hathaway Inc., 3.125%, | | | | | | |
| 3/15/26 | | 100,000 | | | 100,855 | |
| Brookfield Finance Inc. (C), 4.25%, 6/2/26 | | 125,000 | | | 128,215 | |
| Capital One Financial Corp., 2.45%, | | | | | | |
| 4/24/19 | | 200,000 | | | 201,182 | |
| CBOE Holdings Inc., 3.65%, 1/12/27 | | 175,000 | | | 176,688 | |
| Goldman Sachs Group Inc./The, 5.75%, | | | | | | |
| 1/24/22 | | 500,000 | | | 564,108 | |
| Huntington National Bank/The, 2.2%, | | | | | | |
| 4/1/19 | | 400,000 | | | 401,467 | |
| JPMorgan Chase & Co., 2.972%, 1/15/23 | | 300,000 | | | 301,544 | |
| JPMorgan Chase & Co., 2.95%, 10/1/26 | | 350,000 | | | 336,243 | |
| Morgan Stanley, MTN, 3.875%, 1/27/26 | | 100,000 | | | 102,237 | |
| Morgan Stanley, 4.3%, 1/27/45 | | 250,000 | | | 249,892 | |
| Nasdaq Inc., 3.85%, 6/30/26 | | 50,000 | | | 50,426 | |
| New York Life Global Funding (B), 1.95%, | | | | | | |
| 2/11/20 | | 300,000 | | | 299,389 | |
| Regions Financial Corp., 3.2%, 2/8/21 | | 250,000 | | | 255,540 | |
| Synchrony Financial, 3.75%, 8/15/21 | | 250,000 | | | 258,674 | |
| Synchrony Financial, 3.7%, 8/4/26 | | 250,000 | | | 240,292 | |
| | | | | | 4,421,566 | |
| Health Care - 0.9% | | | | | | |
| AbbVie Inc., 4.45%, 5/14/46 | | 200,000 | | | 194,950 | |
| Actavis Funding SCS (C), 4.75%, 3/15/45 | | 150,000 | | | 152,774 | |
| HCA Inc., 3.75%, 3/15/19 | | 150,000 | | | 153,187 | |
| Merck Sharp & Dohme Corp., 5.75%, | | | | | | |
| 11/15/36 | | 220,000 | | | 271,849 | |
| Shire Acquisitions Investments Ireland | | | | | | |
| DAC (C), 1.9%, 9/23/19 | | 350,000 | | | 348,022 | |
| UnitedHealth Group Inc., 2.875%, 3/15/23 | | 400,000 | | | 404,824 | |
| | | | | | 1,525,606 | |
| Industrials - 0.5% | | | | | | |
| Fortive Corp. (B), 2.35%, 6/15/21 | | 100,000 | | | 98,979 | |
| International Lease Finance Corp., | | | | | | |
| 8.875%, 9/1/17 | | 150,000 | | | 153,575 | |
| Masco Corp., 4.375%, 4/1/26 | | 150,000 | | | 158,640 | |
| Norfolk Southern Corp., 5.59%, 5/17/25 | | 239,000 | | | 274,034 | |
| United Rentals North America Inc., | | | | | | |
| 4.625%, 7/15/23 | | 150,000 | | | 155,707 | |
| | | | | | 840,935 | |
| Information Technology - 2.2% | | | | | | |
| Analog Devices Inc., 5.3%, 12/15/45 | | 225,000 | | | 252,363 | |
| Apple Inc., 2.4%, 5/3/23 | | 450,000 | | | 447,286 | |
| Autodesk Inc., 4.375%, 6/15/25 | | 250,000 | | | 263,183 | |
| Broadridge Financial Solutions Inc., | | | | | | |
| 3.95%, 9/1/20 | | 450,000 | | | 471,918 | |
| CA Inc., 4.7%, 3/15/27 | | 100,000 | | | 105,214 | |
| Dell International LLC / EMC Corp. (B), | | | | | | |
| 8.35%, 7/15/46 | | 75,000 | | | 97,071 | |
| Fidelity National Information Services Inc., | | | | | | |
| 3%, 8/15/26 | | 175,000 | | | 167,676 | |
| Fiserv Inc., 2.7%, 6/1/20 | | 250,000 | | | 253,241 | |
| Hewlett Packard Enterprise Co., 6.35%, | | | | | | |
| 10/15/45 | | 175,000 | | | 181,818 | |
| Intel Corp., 4.9%, 7/29/45 | | 250,000 | | | 283,103 | |
| International Business Machines Corp., | | | | | | |
| 1.875%, 8/1/22 | | 400,000 | | | 390,188 | |
| NVIDIA Corp., 2.2%, 9/16/21 | | 100,000 | | | 98,745 | |
| Oracle Corp., 4%, 7/15/46 | | 325,000 | | | 317,610 | |
| Thomson Reuters Corp. (C), 4.3%, | | | | | | |
| 11/23/23 | | 225,000 | | | 239,322 | |
| | | | | | 3,568,738 | |
| Real Estate - 0.2% | | | | | | |
| Iron Mountain Inc. (B), 4.375%, 6/1/21 | | 100,000 | | | 103,750 | |
| Welltower Inc., 4.5%, 1/15/24 | | 200,000 | | | 212,485 | |
| | | | | | 316,235 | |
| Telecommunication Services - 0.6% | | | | | | |
| AT&T Inc., 4.75%, 5/15/46 | | 200,000 | | | 187,342 | |
| Harris Corp., 5.054%, 4/27/45 | | 250,000 | | | 274,634 | |
| Verizon Communications Inc., 5.15%, | | | | | | |
| 9/15/23 | | 400,000 | | | 442,677 | |
| | | | | | 904,653 | |
| Total Corporate Notes and Bonds | | | | | | |
| (Cost $20,542,976) | | | | | 21,282,683 | |
| | | | | | | |
| LONG TERM MUNICIPAL BONDS - 2.4% | | | | | | |
| County of Pasco FL Water & Sewer | | | | | | |
| Revenue, Series B, 6.76%, 10/1/39 | | 500,000 | | | 555,415 | |
| Los Angeles Department of Water & | | | | | | |
| Power Revenue, 6.166%, 7/1/40 | | 500,000 | | | 556,510 | |
| Metropolitan Transportation Authority | | | | | | |
| Revenue, 6.548%, 11/15/31 | | 325,000 | | | 423,182 | |
| New York City Transitional Finance | | | | | | |
| Authority Future Tax Secured Revenue, | | | | | | |
| 6.267%, 8/1/39 | | 500,000 | | | 543,805 | |
| Northside Independent School District, | | | | | | |
| General Obligation, Series B, (PSF-GTD), | | | | | | |
| 5.741%, 8/15/35 | | 325,000 | | | 349,931 | |
| Rancho Water District Financing Authority | | | | | | |
| Revenue, Series A, 6.337%, 8/1/40 | | 350,000 | | | 384,223 | |
| State of Iowa Revenue, 6.75%, 6/1/34 | | 250,000 | | | 273,400 | |
| University of Massachusetts Building | | | | | | |
| Authority Revenue, 6.573%, 5/1/39 | | 500,000 | | | 543,125 | |
| Washington County School District #1 | | | | | | |
| West Union, General Obligation, 4.355%, | | | | | | |
| 6/30/34 | | 200,000 | | | 205,628 | |
| Total Long Term Municipal Bonds | | | | | | |
| (Cost $3,812,741) | | | | | 3,835,219 | |
| | | | | | | |
| MORTGAGE BACKED SECURITIES - 8.8% | | | | | | |
| | | | | | | |
| Fannie Mae - 5.6% | | | | | | |
| 3.5%, 8/1/26 Pool # AL0787 | | 196,164 | | | 205,182 | |
| 3%, 5/1/27 Pool # AL1715 | | 249,333 | | | 257,375 | |
| 3.5%, 5/1/28 Pool # AL3678 | | 351,219 | | | 369,042 | |
| 3.5%, 8/1/29 Pool # MA2003 | | 221,324 | | | 231,489 | |
| 3%, 9/1/30 Pool # 890696 | | 267,251 | | | 275,153 | |
| 3%, 12/1/30 Pool # AL8924 | | 432,676 | | | 445,617 | |
| 2.5%, 5/1/31 Pool # AS7117 | | 221,250 | | | 222,891 | |
| 7%, 11/1/31 Pool # 607515 | | 8,634 | | | 9,721 | |
| 3.5%, 12/1/31 Pool # MA0919 (D), | | 443,597 | | | 463,863 | |
| 3%, 2/1/32 Pool # AL9867 | | 245,848 | | | 253,136 | |
| 7%, 5/1/32 Pool # 644591 | | 1,347 | | | 1,460 | |
| 5.5%, 10/1/33 Pool # 254904 | | 61,483 | | | 68,931 | |
| 7%, 7/1/34 Pool # 792636 | | 4,962 | | | 5,147 | |
| 4%, 2/1/35 Pool # MA2177 | | 442,628 | | | 470,627 | |
See accompanying Notes to Financial Statements.
20
| Madison Funds | April 30, 2017 |
| |
|
| Madison Diversified Income Fund Portfolio of Investments (unaudited) - continued |
| | | | | | |
| | | Par Value | | Value (Note 2) | |
| MORTGAGE BACKED SECURITIES - continued | | | | |
| | | | | | | |
| Fannie Mae - continued | | | | | | |
| 5%, 8/1/35 Pool # 829670 | $ | 47,798 | | | $ 52,361 | |
| 5%, 9/1/35 Pool # 820347 | | 75,965 | | | 84,926 | |
| 5%, 9/1/35 Pool # 835699 | | 62,148 | | | 69,507 | |
| 5%, 12/1/35 Pool # 850561 | | 23,231 | | | 25,463 | |
| 5.5%, 9/1/36 Pool # 831820 | | 121,114 | | | 138,533 | |
| 6%, 9/1/36 Pool # 831741 | | 76,511 | | | 86,636 | |
| 5.5%, 10/1/36 Pool # 901723 | | 44,130 | | | 49,287 | |
| 5.5%, 12/1/36 Pool # 903059 | | 107,769 | | | 121,820 | |
| 4.5%, 7/1/41 Pool # AB3274 | | 213,730 | | | 231,438 | |
| 5.5%, 7/1/41 Pool # AL6588 | | 213,367 | | | 239,135 | |
| 3.5%, 6/1/42 Pool # AO4134 | | 330,168 | | | 341,149 | |
| 4%, 6/1/42 Pool # MA1087 | | 241,024 | | | 254,764 | |
| 3.5%, 8/1/42 Pool # AO8100 | | 213,215 | | | 220,285 | |
| 3.5%, 8/1/42 Pool # AP2133 | | 243,930 | | | 252,018 | |
| 4%, 10/1/42 Pool # AP7363 | | 440,497 | | | 464,678 | |
| 3%, 2/1/43 Pool # AB8486 | | 355,191 | | | 356,783 | |
| 3%, 2/1/43 Pool # AB8563 | | 214,118 | | | 215,078 | |
| 3%, 2/1/43 Pool # AL3072 | | 340,704 | | | 342,231 | |
| 3%, 3/1/43 Pool # AB8818 | | 350,809 | | | 352,382 | |
| 3.5%, 3/1/43 Pool # AT0310 | | 192,087 | | | 198,432 | |
| 4%, 1/1/45 Pool # AS4257 | | 173,399 | | | 183,440 | |
| 4%, 1/1/45 Pool # MA2145 | | 451,601 | | | 476,183 | |
| 4.5%, 2/1/45 Pool # MA2193 | | 354,739 | | | 382,251 | |
| 3.5%, 12/1/45 Pool # AS6309 | | 184,397 | | | 189,780 | |
| 3%, 1/1/47 Pool # BE0108 | | 245,813 | | | 246,364 | |
| | | | | | 8,854,558 | |
| Freddie Mac - 3.2% | | | | | | |
| 4.5%, 2/1/25 Pool # J11722 | | 51,601 | | | 54,971 | |
| 4.5%, 5/1/25 Pool # J12247 | | 43,569 | | | 46,556 | |
| 3.5%, 1/1/29 Pool # J31950 | | 409,877 | | | 429,869 | |
| 8%, 6/1/30 Pool # C01005 | | 1,354 | | | 1,613 | |
| 2.5%, 3/1/31 Pool # G18590 | | 209,856 | | | 211,383 | |
| 6.5%, 1/1/32 Pool # C62333 | | 39,345 | | | 44,038 | |
| 5%, 10/1/39 Pool # G60465 | | 533,602 | | | 586,300 | |
| 3.5%, 11/1/40 Pool # G06168 | | 345,014 | | | 356,427 | |
| 4.5%, 9/1/41 Pool # Q03516 | | 183,763 | | | 198,198 | |
| 4%, 10/1/41 Pool # Q04092 | | 259,169 | | | 274,485 | |
| 3%, 8/1/42 Pool # G08502 | | 297,306 | | | 298,586 | |
| 3%, 9/1/42 Pool # C04233 | | 305,545 | | | 306,939 | |
| 3%, 4/1/43 Pool # V80025 | | 362,192 | | | 363,939 | |
| 3%, 4/1/43 Pool # V80026 | | 355,620 | | | 357,335 | |
| 3.5%, 8/1/44 Pool # Q27927 | | 550,933 | | | 568,563 | |
| 4%, 5/1/45 Pool # G08642 | | 267,059 | | | 281,359 | |
| 3.5%, 8/1/45 Pool # Q35614 | | 429,012 | | | 441,890 | |
| 3%, 10/1/46 Pool # G60722 | | 315,691 | | | 315,909 | |
| | | | | | 5,138,360 | |
| Ginnie Mae - 0.0% | | | | | | |
| 6.5%, 2/20/29 Pool # 2714 | | 17,201 | | | 19,870 | |
| 6.5%, 4/20/31 Pool # 3068 | | 9,536 | | | 11,263 | |
| | | | | | 31,133 | |
| Total Mortgage Backed Securities | | | | | | |
| (Cost $14,032,617) | | | | | 14,024,051 | |
| | | | | | | |
| U.S. GOVERNMENT AND AGENCY | | | | | | |
| OBLIGATIONS - 10.4% | | | | | | |
| | | | | | | |
| Federal Home Loan Bank - 0.6% | | | | | | |
| 1.000%, 6/1/23 (E) | | 500,000 | | | 499,584 | |
| 1.750%, 12/21/23 (E) | | 400,000 | | | 399,496 | |
| | | | | | 899,080 | |
| Freddie Mac - 0.2% | | | | | | |
| 1.100%, 6/14/19 (E) | | 350,000 | | | 349,544 | |
| | |
| | | | | | | |
| U.S. Treasury Bonds - 1.5% | | | | | | |
| 6.625%, 2/15/27 | | 860,000 | | | 1,188,883 | |
| 3.000%, 5/15/42 | | 500,000 | | | 506,445 | |
| 2.500%, 2/15/45 | | 250,000 | | | 227,813 | |
| 2.500%, 5/15/46 | | 100,000 | | | 90,820 | |
| 2.250%, 8/15/46 | | 500,000 | | | 429,219 | |
| | | | | | 2,443,180 | |
| U.S. Treasury Notes - 8.1% | | | | | | |
| 4.250%, 11/15/17 | | 1,000,000 | | | 1,017,148 | |
| 3.875%, 5/15/18 | | 750,000 | | | 770,800 | |
| 1.500%, 12/31/18 | | 750,000 | | | 753,252 | |
| 3.125%, 5/15/19 | | 1,000,000 | | | 1,036,797 | |
| 1.625%, 8/31/19 | | 2,000,000 | | | 2,013,438 | |
| 3.375%, 11/15/19 | | 2,000,000 | | | 2,100,156 | |
| 2.000%, 7/31/20 | | 750,000 | | | 761,192 | |
| 2.625%, 11/15/20 | | 2,000,000 | | | 2,070,390 | |
| 1.750%, 5/15/22 | | 1,600,000 | | | 1,593,501 | |
| 2.500%, 8/15/23 | | 750,000 | | | 771,035 | |
| | | | | | 12,887,709 | |
| Total U.S. Government and Agency | | | | | | |
| Obligations (Cost $16,326,373) | | | | | 16,579,513 | |
| | | Shares | | | | |
| SHORT-TERM INVESTMENTS - 2.8% | | | | | | |
| State Street Institutional U.S. Government | | | | | | |
| Money Market Fund, 0.68%, Premier Class | | 4,478,125 | | | 4,478,125 | |
| Total Short-Term Investments | | | | | | |
| (Cost $4,478,125) | | | | | 4,478,125 | |
| | | | | | | |
| TOTAL INVESTMENTS - 99.4% | | | | | | |
| (Cost $133,238,269**) | | | | | 158,718,664 | |
| NET OTHER ASSETS AND LIABILITIES - 0.6% | | | 942,294 | |
| TOTAL NET ASSETS - 100.0% | | | | $ | 159,660,958 | |
| | |
| ** | | Aggregate cost for Federal tax purposes was $133,238,269. |
| (A) | | Floating rate or variable rate note. Rate shown is as of April 30, 2017. |
|
| (B) | | Security sold within terms of a private placement memorandum exempt from registration under section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other “qualified institutional buyers.” |
|
|
|
| (C) | | Notes and bonds, issued by foreign entities, denominated in U.S. dollars. The aggregate of these securities is 0.8% of total net assets. |
|
|
| (D) | | Security purchased on a delayed delivery or when-issued basis. Rate shown is at issue date. |
|
| (E) | | Stepped rate security. Rate shown is as of April 30, 2017. |
| ADR | | American Depositary Receipt |
| MTN | | Medium Term Note |
| PLC | | Public Limited Company. |
See accompanying Notes to Financial Statements.
21
| Madison Funds | April 30, 2017 |
| |
|
| Madison Covered Call & Equity Income Fund Portfolio of Investments (unaudited) |
| | | | | | |
| | | Shares | | Value (Note 2) | |
| COMMON STOCKS - 76.1% | | | | | | |
| Consumer Discretionary - 9.9% | | | | | | |
| Discovery Communications Inc., Class | | | | | | |
| A * (A) | | 33,800 | | $ | 972,764 | |
| Discovery Communications Inc., Class | | | | | | |
| C * (A) | | 36,000 | | | 1,007,280 | |
| Dollar General Corp. (A) | | 31,800 | | | 2,312,178 | |
| General Motors Co. (A) | | 102,400 | | | 3,547,136 | |
| Lowe’s Cos. Inc. (A) | | 28,000 | | | 2,376,640 | |
| Nordstrom Inc. (A) | | 34,300 | | | 1,655,661 | |
| | | | | | 11,871,659 | |
| Consumer Staples - 4.5% | | | | | | |
| CVS Health Corp. (A) | | 23,800 | | | 1,962,072 | |
| Diageo PLC, ADR (A) | | 7,500 | | | 880,725 | |
| JM Smucker Co./The (A) | | 20,000 | | | 2,534,400 | |
| | | | | | 5,377,197 | |
| Energy - 12.8% | | | | | | |
| Apache Corp. (A) | | 56,200 | | | 2,733,568 | |
| Baker Hughes Inc. (A) | | 53,300 | | | 3,164,421 | |
| Marathon Petroleum Corp. (A) | | 62,600 | | | 3,188,844 | |
| National Oilwell Varco Inc. (A) | | 44,200 | | | 1,545,674 | |
| Occidental Petroleum Corp. (A) | | 31,400 | | | 1,932,356 | |
| Range Resources Corp. (A) | | 106,200 | | | 2,813,238 | |
| | | | | | 15,378,101 | |
| Financials - 6.4% | | | | | | |
| Bank of America Corp. (A) | | 76,000 | | | 1,773,840 | |
| JPMorgan Chase & Co. (A) | | 24,200 | | | 2,105,400 | |
| State Street Corp. (A) | | 19,200 | | | 1,610,880 | |
| T. Rowe Price Group Inc. (A) | | 31,100 | | | 2,204,679 | |
| | | | | | 7,694,799 | |
| Health Care - 12.9% | | | | | | |
| Agilent Technologies Inc. (A) | | 16,000 | | | 880,800 | |
| Baxter International Inc. (A) | | 62,600 | | | 3,485,568 | |
| Biogen Inc. * (A) | | 7,800 | | | 2,115,438 | |
| Cerner Corp. * (A) | | 40,200 | | | 2,602,950 | |
| Express Scripts Holding Co. * | | 33,700 | | | 2,067,158 | |
| Gilead Sciences Inc. (A) | | 41,200 | | | 2,824,260 | |
| McKesson Corp. (A) | | 10,500 | | | 1,452,045 | |
| | | | | | 15,428,219 | |
| Industrials - 5.2% | | | | | | |
| FedEx Corp. (A) | | 21,000 | | | 3,983,700 | |
| United Technologies Corp. (A) | | 18,500 | | | 2,201,315 | |
| | | | | | 6,185,015 | |
| Information Technology - 13.6% | | | | | | |
| Alphabet Inc., Class C * (A) | | 2,800 | | | 2,536,688 | |
| Ciena Corp. * (A) | | 83,900 | | | 1,922,149 | |
| Intel Corp. (A) | | 59,900 | | | 2,165,385 | |
| Microsoft Corp. (A) | | 35,300 | | | 2,416,638 | |
| Nuance Communications Inc. * | | 11,000 | | | 196,790 | |
| QUALCOMM Inc. | | 58,800 | | | 3,159,912 | |
| Visa Inc., Class A (A) | | 26,100 | | | 2,380,842 | |
| Xilinx Inc. (A) | | 24,600 | | | 1,552,506 | |
| | | | | | 16,330,910 | |
| Materials - 3.7% | | | | | | |
| Dow Chemical Co./The (A) | | 20,600 | | | 1,293,680 | |
| EI du Pont de Nemours & Co. (A) | | 39,900 | | | 3,182,025 | |
| | | | | | 4,475,705 | |
| Real Estate - 2.5% | | | | | | |
| American Tower Corp. (A) | | 5,500 | | | 692,670 | |
| Weyerhaeuser Co. (A) | | 68,700 | | | 2,326,869 | |
| | | | | | 3,019,539 | |
| Telecommunication Service - 2.3% | | | | | | |
| T-Mobile U.S. Inc. * (A) | | 41,800 | | | 2,811,886 | |
| | |
| Utilities - 2.3% | | | | | | |
| NRG Energy Inc. (A) | | 163,600 | | | 2,764,840 | |
| | | | | | | |
| Total Common Stocks | | | | | | |
| (Cost $95,774,705) | | | | | 91,337,870 | |
| | | | | | | |
| EXCHANGE TRADED FUNDS - 6.8% | | | | | | |
| PowerShares DB Gold Fund * | | 59,100 | | $ | a2,400,642 | |
| SPDR S&P 500 ETF Trust (A) | | 10,000 | | | 2,380,800 | |
| SPDR S&P Oil & Gas Exploration & | | | | | | |
| Production ETF (A) | | 47,900 | | | 1,674,105 | |
| VanEck Vectors Gold Miners ETF | | 75,600 | | | 1,680,588 | |
| Total Exchange Traded Funds | | | | | | |
| (Cost $8,250,756) | | | | | 8,136,135 | |
| | | | | | | |
| SHORT-TERM INVESTMENTS - 19.3% | | | | | | |
| State Street Institutional U.S. | | | | | | |
| Government Money Market Fund, | | | | | | |
| 0.68%, Premier Class | | 23,214,515 | | | 23,214,515 | |
| Total Short-Term Investments | | | | | | |
| (Cost $23,214,515) | | | | | 23,214,515 | |
| | | Par Value | | | | |
| U.S. GOVERNMENT AND AGENCY | | | | | | |
| OBLIGATIONS - 4.2% | | | | | | |
| U.S. Treasury Bill (B) (C), 0.731%, | | | | | | |
| 6/29/17 | $ | 5,000,000 | | | 4,993,715 | |
| Total U.S. Government and Agency | | | | | | |
| Obligations (Cost $4,994,104) | | | | | 4,993,715 | |
| | | | | | | |
| TOTAL INVESTMENTS - 106.4% | | | | | | |
| (Cost $132,234,080**) | | | | | 127,682,235 | |
| NET OTHER ASSETS AND LIABILITIES - (4.6%) | | | (5,415,324 | ) |
| TOTAL CALL & PUT OPTIONS WRITTEN - (1.8%) | | | (2,209,607 | ) |
| TOTAL NET ASSETS - 100.0% | | | | $ | 120,057,304 | |
| | |
| * | | Non-income producing. |
| ** | | Aggregate cost for Federal tax purposes was $132,234,080. |
| (A) | | All or a portion of these securities’ positions represent covers (directly or through conversion rights) for outstanding options written. |
|
|
| (B) | | All or a portion of these securities are segregated as collateral for put options written. As of April 30, 2017, the total amount segregated was $4,993,715. |
|
|
| (C) | | Rate noted represents annualized yield at time of purchase. |
| ADR | | American Depositary Receipt. |
| ETF | | Exchange Traded Fund. |
| PLC | | Public Limited Company. |
See accompanying Notes to Financial Statements.
22
| Madison Funds | April 30, 2017 |
| |
| |
| Madison Covered Call & Equity Income Fund Portfolio of Investments (unaudited) - continued |
| | | | | | | | | | | | |
| Call Options Written | | Contracts
(100 shares
per contract) | | | Expiration | | | Strike
Price | | | Value
(Note 2) | |
| Agilent Technologies Inc. | | 160 | | | May 2017 | | $ | 50.00 | | $ | (80,400 | ) |
| Alphabet Inc., Class C | | 8 | | | May 2017 | | | 840.00 | | | (54,360 | ) |
| Alphabet Inc., Class C | | 20 | | | June 2017 | | | 885.00 | | | (64,000 | ) |
| American Tower Corp. | | 55 | | | June 2017 | | | 115.00 | | | (62,425 | ) |
| Apache Corp. | | 225 | | | July 2017 | | | 52.50 | | | (26,325 | ) |
| Baker Hughes Inc. | | 270 | | | July 2017 | | | 60.00 | | | (57,645 | ) |
| Baker Hughes Inc. | | 26 | | | July 2017 | | | 62.50 | | | (3,016 | ) |
| Bank of America Corp. | | 272 | | | May 2017 | | | 24.00 | | | (6,392 | ) |
| Bank of America Corp. | | 275 | | | July 2017 | | | 25.00 | | | (11,962 | ) |
| Baxter International Inc. | | 257 | | | May 2017 | | | 47.50 | | | (213,310 | ) |
| Baxter International Inc. | | 369 | | | May 2017 | | | 52.50 | | | (122,324 | ) |
| Biogen Inc. | | 78 | | | June 2017 | | | 300.00 | | | (9,165 | ) |
| Cerner Corp. | | 202 | | | June 2017 | | | 57.50 | | | (159,580 | ) |
| Cerner Corp. | | 200 | | | June 2017 | | | 60.00 | | | (106,000 | ) |
| Ciena Corp. | | 280 | | | June 2017 | | | 25.00 | | | (16,800 | ) |
| CVS Health Corp. | | 150 | | | May 2017 | | | 80.00 | | | (52,125 | ) |
| CVS Health Corp. | | 88 | | | June 2017 | | | 85.00 | | | (11,352 | ) |
| Diageo PLC | | 75 | | | July 2017 | | | 120.00 | | | (13,688 | ) |
| Discovery Communications Inc., Class A | | 338 | | | July 2017 | | | 32.50 | | | (10,140 | ) |
| Discovery Communications Inc., Class C | | 73 | | | June 2017 | | | 30.00 | | | (2,737 | ) |
| Discovery Communications Inc., Class C | | 58 | | | September 2017 | | | 30.00 | | | (5,945 | ) |
| Dollar General Corp. | | 160 | | | May 2017 | | | 77.50 | | | (1,600 | ) |
| Dollar General Corp. | | 158 | | | August 2017 | | | 75.00 | | | (44,635 | ) |
| Dow Chemical Co./The | | 206 | | | June 2017 | | | 65.00 | | | (12,257 | ) |
| EI du Pont de Nemours & Co. | | 105 | | | May 2017 | | | 82.50 | | | (2,782 | ) |
| EI du Pont de Nemours & Co. | | 294 | | | July 2017 | | | 82.50 | | | (42,189 | ) |
| FedEx Corp. | | 93 | | | May 2017 | | | 200.00 | | | (2,278 | ) |
| FedEx Corp. | | 117 | | | July 2017 | | | 195.00 | | | (55,575 | ) |
| General Motors Co. | | 431 | | | May 2017 | | | 36.00 | | | (8,404 | ) |
| General Motors Co. | | 335 | | | June 2017 | | | 36.00 | | | (14,573 | ) |
| General Motors Co. | | 215 | | | June 2017 | | | 39.00 | | | (1,397 | ) |
| General Motors Co. | | 43 | | | June 2017 | | | 40.00 | | | (172 | ) |
| Gilead Sciences Inc. | | 202 | | | May 2017 | | | 70.00 | | | (22,927 | ) |
| Gilead Sciences Inc. | | 210 | | | May 2017 | | | 75.00 | | | (4,935 | ) |
| Intel Corp. | | 468 | | | May 2017 | | | 37.00 | | | (5,148 | ) |
| Intel Corp. | | 131 | | | June 2017 | | | 37.00 | | | (4,192 | ) |
| JM Smucker Co./The | | 100 | | | June 2017 | | | 130.00 | | | (17,000 | ) |
| JPMorgan Chase & Co. | | 132 | | | June 2017 | | | 90.00 | | | (12,012 | ) |
| JPMorgan Chase & Co. | | 110 | | | July 2017 | | | 90.00 | | | (17,270 | ) |
| Lowe’s Cos. Inc. | | 140 | | | June 2017 | | | 87.50 | | | (20,230 | ) |
| Lowe’s Cos. Inc. | | 140 | | | July 2017 | | | 90.00 | | | (16,310 | ) |
| Marathon Petroleum Corp. | | 173 | | | May 2017 | | | 52.50 | | | (7,352 | ) |
| Marathon Petroleum Corp. | | 267 | | | June 2017 | | | 52.50 | | | (26,033 | ) |
| Marathon Petroleum Corp. | | 186 | | | July 2017 | | | 52.50 | | | (30,690 | ) |
| McKesson Corp. | | 105 | | | May 2017 | | | 160.00 | | | (787 | ) |
| Microsoft Corp. | | 174 | | | May 2017 | | | 65.00 | | | (61,770 | ) |
| Microsoft Corp. | | 98 | | | June 2017 | | | 67.50 | | | (16,856 | ) |
| National Oilwell Varco Inc. | | 221 | | | May 2017 | | | 41.00 | | | (1,326 | ) |
| Nordstrom Inc. | | 343 | | | May 2017 | | | 45.00 | | | (139,773 | ) |
| NRG Energy Inc. | | 255 | | | May 2017 | | | 19.00 | | | (2,550 | ) |
| NRG Energy Inc. | | 450 | | | June 2017 | | | 18.00 | | | (21,375 | ) |
| NRG Energy Inc. | | 313 | | | June 2017 | | | 19.00 | | | (7,825 | ) |
| Occidental Petroleum Corp. | | 156 | | | May 2017 | | | 72.50 | | | (234 | ) |
| Range Resources Corp. | | 355 | | | May 2017 | | | 30.00 | | | (7,100 | ) |
| SPDR S&P 500 ETF Trust | | 100 | | | June 2017 | | | 240.00 | | | (21,950 | ) |
| SPDR S&P Oil & Gas Exploration & | | | | | | | | | | | | |
| Production ETF | | 45 | | | May 2017 | | | 38.00 | | | (427 | ) |
| SPDR S&P Oil & Gas Exploration & | | | | | | | | | | | | |
| Production ETF | | 290 | | | June 2017 | | | 38.00 | | | (12,035 | ) |
| State Street Corp. | | 41 | | | May 2017 | | | 80.00 | | | (18,553 | ) |
| State Street Corp. | | 151 | | | May 2017 | | | 82.50 | | | (36,014 | ) |
| T-Mobile U.S. Inc. | | 418 | | | May 2017 | | | 65.00 | | | (144,210 | ) |
| T. Rowe Price Group Inc. | | 103 | | | July 2017 | | | 70.00 | | | (26,265 | ) |
| T. Rowe Price Group Inc. | | 110 | | | July 2017 | | | 75.00 | | | (7,150 | ) |
| United Technologies Corp. | | 185 | | | May 2017 | | | 115.00 | | | (78,163 | ) |
| Visa Inc., Class A | | 133 | | | May 2017 | | | 90.00 | | | (26,068 | ) |
| Visa Inc., Class A | | 128 | | | June 2017 | | | 92.50 | | | (17,472 | ) |
| Weyerhaeuser Co. | | 230 | | | May 2017 | | | 34.00 | | | (14,375 | ) |
| Weyerhaeuser Co. | | 260 | | | July 2017 | | | 35.00 | | | (20,150 | ) |
| Xilinx Inc. | | 125 | | | May 2017 | | | 62.50 | | | (18,313 | ) |
| Xilinx Inc. | | 121 | | | June 2017 | | | 62.50 | | | (25,229 | ) |
| Total Call Options Written (Premiums received $1,911,824 )) | | | | | | | | $ | (2,185,622 | ) |
| |
| Put Options Written | | | | | | | | | | | | |
| Nordstrom Inc. | | 369 | | | July 2017 | | | 40.00 | | | (23,985 | ) |
| Total Put Options Written (Premiums received $84,893) | | | | | | | | | (23,985 | ) |
| Total Options Written, at Value ( Premiums received $1,996,717) | | | | | | | | $ | (2,209,607 | ) |
See accompanying Notes to Financial Statements.
23
| Madison Funds | April 30, 2017 |
| |
|
| Madison Dividend Income Fund Portfolio of Investments (unaudited) |
| | | | | | |
| | | Shares | | Value (Note 2) | |
| COMMON STOCKS - 97.9% | | | | | | |
| Consumer Discretionary - 8.5% | | | | | | |
| Carnival Corp. | | 42,000 | | $ | 2,594,340 | |
| Home Depot Inc./The | | 16,000 | | | 2,497,600 | |
| McDonald’s Corp. | | 15,000 | | | 2,098,950 | |
| Omnicom Group Inc. | | 19,000 | | | 1,560,280 | |
| | | | | | 8,751,170 | |
| Consumer Staples - 7.7% | | | | | | |
| JM Smucker Co./The | | 12,900 | | | 1,634,688 | |
| Nestle S.A., ADR | | 28,000 | | | 2,155,972 | |
| PepsiCo Inc. | | 16,000 | | | 1,812,480 | |
| Procter & Gamble Co./The | | 27,000 | | | 2,357,910 | |
| | | | | | 7,961,050 | |
| Energy - 7.0% | | | | | | |
| Chevron Corp. | | 18,800 | | | 2,005,960 | |
| Exxon Mobil Corp. | | 37,000 | | | 3,021,050 | |
| Schlumberger Ltd. | | 31,000 | | | 2,250,290 | |
| | | | | | 7,277,300 | |
| Financials - 16.5% | | | | | | |
| BB&T Corp. | | 34,200 | | | 1,476,756 | |
| Chubb Ltd. | | 11,500 | | | 1,578,375 | |
| CME Group Inc. | | 23,500 | | | 2,730,465 | |
| Northern Trust Corp. | | 15,500 | | | 1,395,000 | |
| PNC Financial Services Group Inc./The | | 23,700 | | | 2,838,075 | |
| Travelers Cos. Inc./The | | 18,500 | | | 2,250,710 | |
| US Bancorp | | 68,500 | | | 3,512,680 | |
| Wells Fargo & Co. | | 23,500 | | | 1,265,240 | |
| | | | | | 17,047,301 | |
| Health Care - 13.2% | | | | | | |
| Amgen Inc. | | 12,000 | | | 1,959,840 | |
| Johnson & Johnson | | 27,000 | | | 3,333,690 | |
| Medtronic PLC | | 24,000 | | | 1,994,160 | |
| Merck & Co. Inc. | | 35,500 | | | 2,212,715 | |
| Novartis AG, ADR | | 21,100 | | | 1,625,333 | |
| Pfizer Inc. | | 75,000 | | | 2,544,000 | |
| | | | | | 13,669,738 | |
| Industrials - 17.5% | | | | | | |
| 3M Co. | | 11,500 | | | 2,252,045 | |
| Boeing Co./The | | 13,500 | | | 2,495,205 | |
| Caterpillar Inc. | | 14,500 | | | 1,482,770 | |
| Emerson Electric Co. | | 36,000 | | | 2,170,080 | |
| General Electric Co. | | 91,000 | | | 2,638,090 | |
| Union Pacific Corp. | | 14,500 | | | 1,623,420 | |
| United Parcel Service Inc., Class B | | 22,000 | | | 2,364,120 | |
| United Technologies Corp. | | 25,500 | | | 3,034,245 | |
| | | | | | 18,059,975 | |
| Information Technology - 18.0% | | | | | | |
| Accenture PLC, Class A | | 16,800 | | | 2,037,840 | |
| Apple Inc. | | 11,500 | | | 1,651,975 | |
| Automatic Data Processing Inc. | | 11,000 | | | 1,149,390 | |
| Cisco Systems Inc. | | 94,000 | | | 3,202,580 | |
| Microsoft Corp. | | 51,500 | | | 3,525,690 | |
| TE Connectivity Ltd. | | 34,000 | | | 2,630,580 | |
| Texas Instruments Inc. | | 33,000 | | | 2,612,940 | |
| Xilinx Inc. | | 27,500 | | | 1,735,525 | |
| | | | | | 18,546,520 | |
| Materials - 3.8% | | | | | | |
| Monsanto Co. | | 11,000 | | | 1,282,710 | |
| Praxair Inc. | | 21,500 | | | 2,687,070 | |
| | | | | | 3,969,780 | |
| Telecommunication Service - 2.5% | | | | | | |
| Verizon Communications Inc. | | 55,000 | | | 2,525,050 | |
| | | | | | | |
| Utilities - 3.2% | | | | | | |
| Duke Energy Corp. | | 17,000 | | | 1,402,500 | |
| NextEra Energy Inc. | | 14,500 | | | 1,936,620 | |
| | | | | | 3,339,120 | |
| Total Common Stocks | | | | | | |
| (Cost $87,745,949) | | | | | 101,147,004 | |
| | | | | | | |
| SHORT-TERM INVESTMENTS - 2.0% | | | | | | |
| State Street Institutional U.S. Government | | | | | | |
| Money Market Fund, 0.68%, Premier Class | | 2,072,068 | | | 2,072,068 | |
| Total Short-Term Investments | | | | | | |
| (Cost $2,072,068 ) | | | | | 2,072,068 | |
| | | | | | | |
| TOTAL INVESTMENTS - 99.9% | | | | | | |
| (Cost $89,818,017**) | | | | | 103,219,072 | |
| NET OTHER ASSETS AND LIABILITIES - 0.1% | | | 140,086 | |
| TOTAL NET ASSETS - 100.0% | | | | $ | 103,359,158 | |
| | |
| ** | | Aggregate cost for Federal tax purposes was $89,818,017. |
| ADR | | American Depositary Receipt. |
| PLC | | Public Limited Company. |
|
| Madison Large Cap Value Fund Portfolio of Investments (unaudited) |
| | | | | | |
| | | Shares | | Value (Note 2) | |
| COMMON STOCKS - 98.2% | | | | | | |
| Consumer Discretionary - 6.2% | | | | | | |
| General Motors Co. | | 85,000 | | $ | 2,944,400 | |
| Lowe’s Cos. Inc. | | 35,000 | | | 2,970,800 | |
| | | | | | 5,915,200 | |
| Energy - 12.4% | | | | | | |
| Baker Hughes Inc. | | 61,000 | | | 3,621,570 | |
| Marathon Petroleum Corp. | | 89,000 | | | 4,533,660 | |
| National Oilwell Varco Inc. | | 104,500 | | | 3,654,365 | |
| | | | | | 11,809,595 | |
| Financials - 24.1% | | | | | | |
| American International Group Inc. | | 52,000 | | | 3,167,320 | |
| Bank of America Corp. | | 189,000 | | | 4,411,260 | |
| Bank of New York Mellon Corp./The | | 62,000 | | | 2,917,720 | |
| Berkshire Hathaway Inc., Class B * | | 12,600 | | | 2,081,646 | |
| JPMorgan Chase & Co. | | 53,000 | | | 4,611,000 | |
| Nasdaq Inc. | | 33,500 | | | 2,307,145 | |
| US Bancorp | | 68,000 | | | 3,487,040 | |
| | | | | | 22,983,131 | |
| Health Care - 4.8% | | | | | | |
| Baxter International Inc. | | 83,000 | | | 4,621,440 | |
| Industrials - 14.5% | | | | | | |
| Caterpillar Inc. | | 15,000 | | | 1,533,900 | |
| FedEx Corp. | | 25,000 | | | 4,742,500 | |
| General Dynamics Corp. | | 14,500 | | | 2,809,955 | |
| Jacobs Engineering Group Inc. | | 60,000 | | | 3,295,200 | |
| Republic Services Inc. | | 24,000 | | | 1,511,760 | |
| | | | | | 13,893,315 | |
| Information Technology - 10.1% | | | | | | |
| Cisco Systems Inc. | | 47,500 | | | 1,618,325 | |
| Microsoft Corp. | | 59,000 | | | 4,039,140 | |
| TE Connectivity Ltd. | | 51,500 | | | 3,984,555 | |
| | | | | | 9,642,020 | |
| Materials - 8.9% | | | | | | |
| Dow Chemical Co./The | | 76,500 | | | 4,804,200 | |
| Nucor Corp. | | 61,000 | | | 3,741,130 | |
| | | | | | 8,545,330 | |
| Real Estate - 8.0% | | | | | | |
| Digital Realty Trust Inc. | | 29,500 | | | 3,387,780 | |
| Weyerhaeuser Co. | | 125,000 | | | 4,233,750 | |
| | | | | | 7,621,530 | |
| Telecommunication Service - 4.8% | | | | | | |
| T-Mobile U.S. Inc. * | | 68,500 | | | 4,607,995 | |
| Utilities - 4.4% | | | | | | |
| NRG Energy Inc. | | 248,000 | | | 4,191,200 | |
| Total Common Stocks | | | | | | |
| (Cost $78,998,198) | | | | | 93,830,756 | |
| | | | | | | |
| SHORT-TERM INVESTMENTS - 1.5% | | | | | | |
| State Street Institutional U.S. Government | | | | | | |
| Money Market Fund, 0.68%, Premier Class | | 1,442,327 | | | 1,442,327 | |
| Total Short-Term Investments | | | | | | |
| (Cost $1,442,327) | | | | | 1,442,327 | |
| | | | | | | |
| TOTAL INVESTMENTS - 99.7% | | | | | | |
| (Cost $80,440,525** ) | | | | | 95,273,083 | |
| NET OTHER ASSETS AND LIABILITIES - 0.3% | | | 321,497 | |
| TOTAL NET ASSETS - 100.0% | | | | $ | 95,594,580 | |
| | |
| * | | Non-income producing. |
| ** | | Aggregate cost for Federal tax purposes was $80,440,525. |
See accompanying Notes to Financial Statements.
24
| Madison Funds | April 30, 2017 |
| |
|
| Madison Investors Fund Portfolio of Investments (unaudited) |
| | | | | | |
| | | Shares | | Value (Note 2) | |
| COMMON STOCKS - 91.8% | | | | | | |
| | | | | | | |
| Consumer Discretionary - 11.3% | | | | | | |
| CarMax Inc. * | | 82,915 | | $ | 4,850,528 | |
| Discovery Communications Inc., Class C * | | 339,577 | | | 9,501,364 | |
| Dollar General Corp. | | 140,778 | | | 10,235,968 | |
| TJX Cos. Inc./The | | 104,717 | | | 8,234,945 | |
| | | | | | 32,822,805 | |
| Consumer Staples - 7.2% | | | | | | |
| Diageo PLC, ADR | | 108,555 | | | 12,747,614 | |
| JM Smucker Co./The | | 65,397 | | | 8,287,108 | |
| | | | | | 21,034,722 | |
| Financials - 17.4% | | | | | | |
| Berkshire Hathaway Inc., Class B * | | 86,548 | | | 14,298,595 | |
| Brookfield Asset Management Inc., | | | | | | |
| Class A | | 358,578 | | | 13,249,457 | |
| Markel Corp. * | | 9,546 | | | 9,255,802 | |
| US Bancorp | | 270,895 | | | 13,891,495 | |
| | | | | | 50,695,349 | |
| Health Care - 15.3% | | | | | | |
| Danaher Corp. | | 144,527 | | | 12,043,435 | |
| Johnson & Johnson | | 108,752 | | | 13,427,610 | |
| Novartis AG, ADR | | 138,610 | | | 10,677,128 | |
| Varian Medical Systems Inc. * | | 94,135 | | | 8,541,810 | |
| | | | | | 44,689,983 | |
| Industrials - 5.5% | | | | | | |
| Copart Inc. * | | 239,438 | | | 7,398,634 | |
| Jacobs Engineering Group Inc. | | 157,553 | | | 8,652,811 | |
| | | | | | 16,051,445 | |
| Information Technology - 21.5% | | | | | | |
| Accenture PLC, Class A | | 90,795 | | | 11,013,434 | |
| Alphabet Inc., Class C * | | 11,886 | | | 10,768,241 | |
| CDW Corp. | | 176,479 | | | 10,428,144 | |
| Oracle Corp. | | 282,564 | | | 12,704,077 | |
| TE Connectivity Ltd. | | 105,503 | | | 8,162,767 | |
| Visa Inc., Class A | | 103,949 | | | 9,482,228 | |
| | | | | | 62,558,891 | |
| Materials - 9.2% | | | | | | |
| PPG Industries Inc. | | 115,496 | | | 12,686,080 | |
| Praxair Inc. | | 111,660 | | | 13,955,267 | |
| | | | | | 26,641,347 | |
| Real Estate - 4.4% | | | | | | |
| American Tower Corp. | | 101,070 | | | 12,728,756 | |
| Total Common Stocks | | | | | | |
| (Cost $202,258,562) | | | | | 267,223,298 | |
| | | | | | | |
| SHORT-TERM INVESTMENTS - 7.9% | | | | | | |
| State Street Institutional U.S. | | | | | | |
| Government Money Market Fund, 0.68%, | | | | |
| Premier Class | | 23,074,706 | | | 23,074,706 | |
| Total Short-Term Investments | | | | | | |
| (Cost $23,074,706) | | | | | 23,074,706 | |
| | | | | | | |
| TOTAL INVESTMENTS - 99.7% | | | | | | |
| (Cost $225,333,268** ) | | | | | 290,298,004 | |
| NET OTHER ASSETS AND LIABILITIES - 0.3% | | | 935,474 | |
| TOTAL NET ASSETS - 100.0% | | | | $ | 291,233,478 | |
| | |
| * | | Non-income producing. |
| ** | | Aggregate cost for Federal tax purposes was $225,333,268. |
| ADR | | American Depositary Receipt. |
| PLC | | Public Limited Company. |
|
| Madison Mid Cap Fund Portfolio of Investments (unaudited) |
| | | | | | |
| | | Shares | | Value (Note 2) | |
| COMMON STOCKS - 90.2% | | | | | | |
| | | | | | | |
| Consumer Discretionary - 23.2% | | | | | | |
| CarMax Inc. * | | 188,253 | | $ | 11,012,801 | |
| Dollar General Corp. | | 107,265 | | | 7,799,238 | |
| Liberty Broadband Corp., Class C * | | 170,319 | | | 15,526,280 | |
| Liberty Global PLC, Series C * | | 385,594 | | | 13,345,408 | |
| Lithia Motors Inc., Class A | | 31,097 | | | 2,971,318 | |
| Omnicom Group Inc. | | 147,903 | | | 12,145,795 | |
| Ross Stores Inc. | | 192,537 | | | 12,514,905 | |
| Tiffany & Co. | | 33,062 | | | 3,030,132 | |
| | | | | | 78,345,877 | |
| Consumer Staples - 1.2% | | | | | | |
| Brown-Forman Corp., Class B | | 87,441 | | | 4,137,708 | |
| | |
| Energy - 1.2% | | | | | | |
| Oceaneering International Inc. | | 147,917 | | | 3,903,530 | |
| | |
| Financials - 21.1% | | | | | | |
| Arch Capital Group Ltd. * | | 121,244 | | | 11,757,031 | |
| Brookfield Asset Management Inc., | | | | | | |
| Class A | | 368,778 | | | 13,626,347 | |
| Brown & Brown Inc. | | 284,696 | | | 12,213,458 | |
| Glacier Bancorp Inc. | | 186,143 | | | 6,287,910 | |
| Markel Corp. * | | 16,701 | | | 16,193,290 | |
| WR Berkley Corp. | | 164,242 | | | 11,165,171 | |
| | | | | | 71,243,207 | |
| Health Care - 9.7% | | | | | | |
| DaVita Inc. * | | 186,358 | | | 12,860,566 | |
| Laboratory Corp. of America Holdings * | | 82,843 | | | 11,610,446 | |
| Zoetis Inc. | | 144,715 | | | 8,119,959 | |
| | | | | | 32,590,971 | |
| Industrials - 16.1% | | | | | | |
| Copart Inc. * | | 455,564 | | | 14,076,928 | |
| Expeditors International of Washington | | | | | | |
| Inc. | | 217,987 | | | 12,226,891 | |
| Fastenal Co. | | 178,584 | | | 7,979,133 | |
| IHS Markit Ltd. * | | 270,021 | | | 11,718,911 | |
| Wabtec Corp. | | 97,992 | | | 8,220,549 | |
| | | | | | 54,222,412 | |
| Information Technology - 6.4% | | | | | | |
| Amphenol Corp., Class A | | 109,088 | | | 7,888,153 | |
| CDW Corp. | | 233,659 | | | 13,806,911 | |
| | | | | | 21,695,064 | |
| Materials - 6.8% | | | | | | |
| Axalta Coating Systems Ltd. * | | 387,200 | | | 12,146,464 | |
| Crown Holdings Inc. * | | 191,302 | | | 10,730,129 | |
| | | | | | 22,876,593 | |
| Real Estate - 4.5% | | | | | | |
| American Tower Corp. | | 60,375 | | | 7,603,628 | |
| Crown Castle International Corp. | | 81,382 | | | 7,698,737 | |
| | | | | | 15,302,365 | |
| Total Common Stocks | | | | | | |
| (Cost $196,308,142) | | | | | 304,317,727 | |
| | | | | | | |
| SHORT-TERM INVESTMENTS - 7.9% | | | | | | |
| State Street Institutional U.S. | | | | | | |
| Government Money Market Fund, 0.68%, | | | | | | |
| Premier Class | | 26,582,819 | | | 26,582,819 | |
| Total Short-Term Investments | | | | | | |
| (Cost $26,582,819) | | | | | 26,582,819 | |
| | | | | | | |
| TOTAL INVESTMENTS - 98.1% | | | | | | |
| (Cost $222,890,961**) | | | | | 330,900,546 | |
| NET OTHER ASSETS AND LIABILITIES - 1.9% | | | 6,503,566 | |
| TOTAL NET ASSETS - 100.0% | | | | $ | 337,404,112 | |
| | |
| * | | Non-income producing. |
| ** | | Aggregate cost for Federal tax purposes was $222,890,961. |
| PLC | | Public Limited Company. |
See accompanying Notes to Financial Statements.
25
| Madison Funds | April 30, 2017 |
| |
|
| Madison Small Cap Fund Portfolio of Investments (unaudited) |
| | | | | | |
| | | Shares | | Value (Note 2) | |
| COMMON STOCKS - 96.3% | | | | | | |
| | | | | | | |
| Consumer Discretionary - 3.7% | | | | | | |
| Cato Corp./The, Class A | | 36,489 | | $ | 823,192 | |
| Fred’s Inc., Class A | | 93,630 | | | 1,378,234 | |
| Helen of Troy Ltd. * | | 7,620 | | | 716,280 | |
| Stage Stores Inc. | | 76,290 | | | 219,715 | |
| TRI Pointe Group Inc. * | | 70,640 | | | 879,468 | |
| | | | | | 4,016,889 | |
| Consumer Staples - 4.5% | | | | | | |
| C&C Group PLC | | 324,869 | | | 1,340,142 | |
| Cranswick PLC | | 55,257 | | | 1,919,476 | |
| Smart & Final Stores Inc. * | | 138,600 | | | 1,635,480 | |
| | | | | | 4,895,098 | |
| Energy - 4.4% | | | | | | |
| Dorian LPG Ltd. * | | 68,210 | | | 620,029 | |
| Era Group Inc. * | | 38,910 | | | 494,546 | |
| Resolute Energy Corp. * | | 21,110 | | | 790,569 | |
| Scorpio Tankers Inc. | | 239,250 | | | 1,052,700 | |
| SEACOR Holdings Inc. * | | 22,870 | | | 1,501,644 | |
| Tesco Corp. * | | 46,905 | | | 307,228 | |
| | | | | | 4,766,716 | |
| Financials - 19.8% | | | | | | |
| 1st Source Corp. | | 20,010 | | | 966,683 | |
| Banc of California Inc. | | 38,450 | | | 834,365 | |
| FCB Financial Holdings Inc., Class A * | | 13,930 | | | 658,192 | |
| First Busey Corp. | | 47,357 | | | 1,418,342 | |
| First Midwest Bancorp Inc. | | 106,660 | | | 2,422,249 | |
| Flushing Financial Corp. | | 47,190 | | | 1,391,161 | |
| Great Western Bancorp Inc. | | 46,438 | | | 1,913,246 | |
| Hancock Holding Co. | | 52,870 | | | 2,469,029 | |
| International Bancshares Corp. | | 69,960 | | | 2,616,504 | |
| Kemper Corp. | | 31,210 | | | 1,228,113 | |
| MB Financial Inc. | | 48,610 | | | 2,066,411 | |
| Northwest Bancshares Inc. | | 127,890 | | | 2,064,145 | |
| Solar Capital Ltd. | | 42,625 | | | 972,276 | |
| State National Cos. Inc. | | 20,410 | | | 299,415 | |
| | | | | | 21,320,131 | |
| Health Care - 8.1% | | | | | | |
| Allscripts Healthcare Solutions Inc. * | | 144,200 | | | 1,726,074 | |
| Charles River Laboratories International | | | | | | |
| Inc. * | | 14,650 | | | 1,314,105 | |
| Corvel Corp. * | | 23,320 | | | 1,037,740 | |
| Haemonetics Corp. * | | 42,980 | | | 1,800,002 | |
| ICU Medical Inc. * | | 8,860 | | | 1,362,668 | |
| Natus Medical Inc. * | | 18,100 | | | 633,500 | |
| Phibro Animal Health Corp., Class A | | 27,440 | | | 816,340 | |
| | | | | | 8,690,429 | |
| Industrials - 32.1% | | | | | | |
| Aerospace & Defense - 2.1% | | | | | | |
| Cubic Corp. | | 44,890 | | | 2,329,791 | |
| | |
| | | | | | | |
| Air Freight & Logistics - 1.1% | | | | | | |
| Forward Air Corp. | | 21,680 | | | 1,152,726 | |
| Building Products - 1.4% | | | | | | |
| Tyman PLC | | 364,627 | | | 1,558,473 | |
| Commercial Services & Supplies - 7.4% | | | | | | |
| ACCO Brands Corp. * | | 124,500 | | | 1,774,125 | |
| Essendant Inc. | | 65,570 | | | 1,095,019 | |
| Matthews International Corp., Class A | | 28,270 | | | 1,937,908 | |
| SP Plus Corp. * | | 63,490 | | | 2,187,230 | |
| Steelcase Inc., Class A | | 60,110 | | | 1,024,876 | |
| | | | | | 8,019,158 | |
| Construction & Engineering - 1.2% | | | | | | |
| Primoris Services Corp. | | 54,750 | | | 1,257,608 | |
| | |
| Electrical Equipment - 1.9% | | | | | | |
| Babcock & Wilcox Enterprises Inc. * | | 56,560 | | | 529,967 | |
| Thermon Group Holdings Inc. * | | 75,390 | | | 1,545,495 | |
| | | | | | 2,075,462 | |
| Machinery - 11.2% | | | | | | |
| Albany International Corp., Class A | | 53,220 | | | 2,594,475 | |
| CIRCOR International Inc. | | 21,350 | | | 1,424,259 | |
| ESCO Technologies Inc. | | 38,860 | | | 2,286,911 | |
| Luxfer Holdings PLC, ADR | | 69,941 | | | 817,610 | |
| Mueller Industries Inc. | | 84,200 | | | 2,697,768 | |
| TriMas Corp. * | | 97,000 | | | 2,226,150 | |
| | | | | | 12,047,173 | |
| Professional Services - 4.2% | | | | | | |
| FTI Consulting Inc. * | | 48,690 | | | 1,684,187 | |
| Huron Consulting Group Inc. * | | 27,510 | | | 1,224,195 | |
| ICF International Inc. * | | 8,407 | | | 371,169 | |
| Mistras Group Inc. * | | 55,340 | | | 1,245,150 | |
| | | | | | 4,524,701 | |
| Trading Companies & Distributors - 1.6% | | | | | | |
| GATX Corp. | | 28,810 | | | 1,725,719 | |
| | | | | | 34,690,811 | |
| Information Technology - 8.7% | | | | | | |
| Belden Inc. | | 40,122 | | | 2,796,504 | |
| CTS Corp. | | 48,360 | | | 1,068,756 | |
| Diebold Nixdorf Inc. | | 49,520 | | | 1,396,464 | |
| Forrester Research Inc. | | 42,020 | | | 1,703,911 | |
| ScanSource Inc. * | | 24,420 | | | 964,590 | |
| WNS Holdings Ltd., ADR * | | 44,220 | | | 1,415,924 | |
| | | | | | 9,346,149 | |
| Materials - 7.7% | | | | | | |
| Deltic Timber Corp. | | 22,250 | | | 1,721,482 | |
| Greif Inc., Class A | | 38,080 | | | 2,232,250 | |
| Multi Packaging Solutions International | | | | | | |
| Ltd. * | | 60,400 | | | 1,084,180 | |
| Neenah Paper Inc. | | 10,660 | | | 835,211 | |
| Sensient Technologies Corp. | | 29,410 | | | 2,405,738 | |
| | | | | | 8,278,861 | |
| Real Estate - 5.4% | | | | | | |
| Corporate Office Properties Trust, REIT | | 36,620 | | | 1,198,939 | |
| DiamondRock Hospitality Co., REIT | | 89,784 | | | 988,522 | |
| Education Realty Trust Inc., REIT | | 30,483 | | | 1,181,826 | |
| Ramco-Gershenson Properties Trust, REIT | | 91,570 | | | 1,220,628 | |
| Summit Hotel Properties Inc., REIT | | 76,710 | | | 1,268,016 | |
| | | | | | 5,857,931 | |
| Utilities - 1.9% | | | | | | |
| New Jersey Resources Corp. | | 21,900 | | | 883,665 | |
| Spire Inc. | | 16,880 | | | 1,157,124 | |
| | | | | | 2,040,789 | |
| Total Common Stocks | | | | | | |
| (Cost $86,215,638) | | | | | 103,903,804 | |
| | | | | | | |
| SHORT-TERM INVESTMENTS - 3.6% | | | | | | |
| State Street Institutional U.S. Government | | | | | | |
| Money Market Fund, 0.68%, Premier Class | | 3,882,575 | | | 3,882,575 | |
| Total Short-Term Investments | | | | | | |
| ( Cost $3,882,575 ) | | | | | 3,882,575 | |
| | |
| TOTAL INVESTMENTS - 99.9% | | | | | | |
| (Cost $90,098,213** ) | | | | | 107,786,379 | |
| NET OTHER ASSETS AND LIABILITIES - 0.1% | | | 151,866 | |
| TOTAL NET ASSETS - 100.0% | | | | $ | 107,938,245 | |
| | |
| * | | Non-income producing. |
| ** | | Aggregate cost for Federal tax purposes was $90,098,213. |
| ADR | | American Depositary Receipt. |
| PLC | | Public Limited Company. |
| REIT | | Real Estate Investment Trust. |
See accompanying Notes to Financial Statements.
26
| Madison Funds | April 30, 2017 |
| |
| Madison International Stock Fund Portfolio of Investments (unaudited) |
| | | | | | |
| | | Shares | | Value (Note 2) | |
| COMMON STOCKS - 94.2% | | | | | | |
| | | | | | | |
| Australia - 0.9% | | | | | | |
| Caltex Australia Ltd. | | 13,301 | | $ | 297,499 | |
| | | | | | | |
| Belgium - 2.6% | | | | | | |
| Anheuser-Busch InBev S.A. | | 5,372 | | | 605,068 | |
| KBC Group N.V. | | 3,350 | | | 241,866 | |
| | | | | | 846,934 | |
| Brazil - 1.1% | | | | | | |
| BB Seguridade Participacoes S.A. | | 38,700 | | | 364,438 | |
| | |
| Canada - 4.3% | | | | | | |
| Canadian National Railway Co. | | 5,680 | | | 410,568 | |
| National Bank of Canada | | 10,000 | | | 388,630 | |
| Suncor Energy Inc. | | 18,680 | | | 585,422 | |
| | | | | | 1,384,620 | |
| Denmark - 1.9% | | | | | | |
| AP Moeller - Maersk AS, Class B | | 136 | | | 235,223 | |
| Carlsberg AS, Class B | | 3,804 | | | 379,662 | |
| | | | | | 614,885 | |
| Finland - 1.4% | | | | | | |
| Sampo Oyj, Class A | | 9,646 | | | 462,220 | |
| | |
| France - 10.9% | | | | | | |
| Air Liquide S.A. | | 4,690 | | | 565,035 | |
| Cap Gemini S.A. | | 6,906 | | | 691,336 | |
| Cie Generale des Etablissements Michelin | | 4,553 | | | 594,902 | |
| Valeo S.A. | | 13,087 | | | 940,874 | |
| Vinci S.A. | | 8,945 | | | 760,990 | |
| | | | | | 3,553,137 | |
| Germany - 2.6% | | | | | | |
| SAP SE | | 8,320 | | | 834,428 | |
| | |
| Ireland - 2.3% | | | | | | |
| James Hardie Industries PLC | | 20,756 | | | 352,339 | |
| Ryanair Holdings PLC, ADR * | | 4,167 | | | 383,073 | |
| | | | | | 735,412 | |
| Italy - 1.6% | | | | | | |
| UniCredit SpA * | | 31,013 | | | 504,710 | |
| | |
| Japan - 16.2% | | | | | | |
| ABC-Mart Inc. | | 5,300 | | | 294,299 | |
| Daiwa House Industry Co. Ltd. | | 28,550 | | | 847,984 | |
| Don Quijote Holdings Co. Ltd. | | 18,400 | | | 670,967 | |
| Hoshizaki Corp. | | 2,700 | | | 225,010 | |
| Isuzu Motors Ltd. | | 38,400 | | | 520,842 | |
| KDDI Corp. | | 15,800 | | | 418,900 | |
| Makita Corp. | | 13,000 | | | 463,557 | |
| Seven & I Holdings Co. Ltd. | | 7,500 | | | 316,887 | |
| Sony Corp. | | 23,300 | | | 785,689 | |
| Sumitomo Mitsui Financial Group Inc. | | 13,900 | | | 514,228 | |
| United Arrows Ltd. | | 6,700 | | | 207,356 | |
| | | | | | 5,265,719 | |
| Jersey - 5.0% | | | | | | |
| Shire PLC | | 15,689 | | | 921,936 | |
| Wolseley PLC | | 11,069 | | | 703,065 | |
| | | | | | 1,625,001 | |
| Luxembourg - 0.6% | | | | | | |
| RTL Group S.A. | | 2,733 | | | 211,817 | |
| | |
| Netherlands - 4.6% | | | | | | |
| Airbus SE | | 3,346 | | | 270,553 | |
| Koninklijke Ahold Delhaize N.V. | | 16,418 | | | 340,156 | |
| Koninklijke KPN N.V. | | 83,785 | | | 242,314 | |
| Wolters Kluwer N.V. | | 14,931 | | | 634,146 | |
| | | | | | 1,487,169 | |
| Norway - 2.4% | | | | | | |
| Statoil ASA | | 20,660 | | | 340,965 | |
| Telenor ASA | | 26,640 | | | 430,658 | |
| | | | | | 771,623 | |
| Philippines - 0.1% | | | | | | |
| Alliance Global Group Inc. (A) | | 90,300 | | | 26,743 | |
| | |
| Singapore - 1.0% | | | | | | |
| DBS Group Holdings Ltd. | | 22,600 | | | 313,001 | |
| | |
| Spain - 0.9% | | | | | | |
| Red Electrica Corp. S.A. | | 15,145 | | | 295,304 | |
| | |
| Sweden - 4.8% | | | | | | |
| Assa Abloy AB, Class B | | 31,428 | | | 680,911 | |
| Nordea Bank AB | | 47,903 | | | 589,505 | |
| Swedbank AB, Class A | | 11,986 | | | 284,044 | |
| | | | | | 1,554,460 | |
| Switzerland - 3.9% | | | | | | |
| Julius Baer Group Ltd. * | | 6,214 | | | 323,815 | |
| Novartis AG | | 12,327 | | | 948,374 | |
| | | | | | 1,272,189 | |
| Taiwan - 1.9% | | | | | | |
| Taiwan Semiconductor Manufacturing | | | | | | |
| Co. Ltd., ADR | | 18,700 | | | 618,409 | |
| | |
| Turkey - 0.7% | | | | | | |
| Turkiye Garanti Bankasi AS | | 85,143 | | | 229,880 | |
| | | | | | | |
| United Kingdom - 22.5% | | | | | | |
| Aon PLC | | 5,460 | | | 654,326 | |
| BHP Billiton PLC | | 43,448 | | | 661,217 | |
| British American Tobacco PLC | | 14,948 | | | 1,009,657 | |
| BT Group PLC | | 72,595 | | | 286,541 | |
| ConvaTec Group PLC * (B) | | 30,838 | | | 122,660 | |
| Diageo PLC | | 16,565 | | | 481,986 | |
| Howden Joinery Group PLC | | 44,359 | | | 266,011 | |
| Informa PLC | | 38,691 | | | 321,723 | |
| Provident Financial PLC | | 8,281 | | | 343,646 | |
| Prudential PLC | | 49,122 | | | 1,091,767 | |
| RELX PLC | | 31,457 | | | 638,037 | |
| Royal Dutch Shell PLC, Class A | | 30,630 | | | 794,431 | |
| Unilever PLC | | 12,481 | | | 642,089 | |
| | | | | | 7,314,091 | |
| Total Common Stocks | | | | | | |
| (Cost $23,980,312) | | | | | 30,583,689 | |
| | | | | | | |
| SHORT-TERM INVESTMENTS - 6.3% | | | | | | |
| United States - 6.3% | | | | | | |
| State Street Institutional U.S. Government | | | | | | |
| Money Market Fund, 0.68%, Premier Class | | 2,050,055 | | | 2,050,055 | |
| Total Short-Term Investments | | | | | | |
| (Cost $2,050,055) | | | | | 2,050,055 | |
| | | | | | | |
| TOTAL INVESTMENTS - 100.5% | | | | | | |
| (Cost $26,030,367** ) | | | | | 32,633,744 | |
| NET OTHER ASSETS AND LIABILITIES - (0.5%) | | | | | (161,195 | ) |
| TOTAL NET ASSETS - 100.0% | | | | $ | 32,472,549 | |
| | | |
| * | | Non-income producing. |
| ** | | Aggregate cost for Federal tax purposes was $26,030,367. |
(A)
| | Due to events that occurred between the close of the exchange on which this security is traded and that of the New York Stock Exchange, fair value was determined for this security using methods determined in good faith by or at the discretion of the Board of Trustees (see Note 2). |
|
|
|
|
| (B) | | Security sold within terms of a private placement memorandum exempt from registration under section 144A of the Securities Act of 1933, as amended, and may be sold only to dealers in that program or other “qualified institutional buyers.” |
|
|
|
| ADR | | American Depositary Receipt. |
| PLC | | Public Limited Company. |
See accompanying Notes to Financial Statements.
27
| Madison Funds | April 30, 2017 |
| |
| Statements of Assets and Liabilities as of April 30, 2017 (unaudited) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Conservative
Allocation
Fund | | Moderate
Allocation
Fund | | | Aggressive
Allocation
Fund | | Government
Money Market
Fund | | Tax-Free
Virginia
Fund | | Tax-Free
National
Fund | | High Quality
Bond
Fund | | Core
Bond
Fund | | Corporate
Bond
Fund |
| Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investments in securities, at cost: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Unaffiliated issuers | | $ | 42,430,642 | | | $ | 82,471,226 | | | $ | 34,146,069 | | | $ | 15,641,088 | | | $ | 20,996,532 | | | $ | 24,312,132 | | | $ | 99,219,744 | | | $ | 204,013,318 | | | $ | 20,848,460 | |
| Affiliated issuers1 | | | 28,343,351 | | | | 50,739,488 | | | | 21,509,978 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Net unrealized appreciation (depreciation) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Unaffiliated issuers | | | 1,570,266 | | | | 6,529,556 | | | | 4,033,467 | | | | – | | | | 588,828 | | | | 1,049,671 | | | | 299,865 | | | | 3,419,467 | | | | 557,851 | |
| Affiliated issuers1 | | | 717,979 | | | | 4,606,952 | | | | 2,656,409 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Total investments, at value | | | 73,062,238 | | | | 144,347,222 | | | | 62,345,923 | | | | 15,641,088 | | | | 21,585,360 | | | | 25,361,803 | | | | 99,519,609 | | | | 207,432,785 | | | | 21,406,311 | |
| Cash | | | – | | | | – | | | | – | | | | 500,000 | | | | 176,051 | | | | 154,745 | | | | – | | | | 873,639 | | | | – | |
| Foreign currency (cost of $44 and $5,157) (Note 2) | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Receivables: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investments sold | | | 164,409 | | | | 645,313 | | | | 273,150 | | | | – | | | | – | | | | – | | | | – | | | | 410,187 | | | | – | |
| Fund shares sold | | | 31,970 | | | | 18,021 | | | | 10,084 | | | | 1,926 | | | | 3,200 | | | | 3 | | | | 243,427 | | | | 127,566 | | | | 18 | |
| Dividends and interest | | | 44,493 | | | | 43,026 | | | | 10,923 | | | | 39,032 | | | | 263,595 | | | | 296,037 | | | | 765,666 | | | | 1,783,892 | | | | 206,610 | |
| Due from Adviser | | | – | | | | – | | | | – | | | | 138 | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Other assets | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Total assets | | | 73,303,110 | | | | 145,053,582 | | | | 62,640,080 | | | | 16,182,184 | | | | 22,028,206 | | | | 25,812,588 | | | | 100,528,702 | | | | 210,628,069 | | | | 21,612,939 | |
| Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Payables: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investments purchased | | | 495,946 | | | | 1,038,764 | | | | 102,409 | | | | – | | | | – | | | | – | | | | – | | | | 212,833 | | | | – | |
| Fund shares repurchased | | | 3,196 | | | | 17,701 | | | | 496 | | | | 63,867 | | | | 159 | | | | 63,464 | | | | 123,104 | | | | 12,309 | | | | 234 | |
| Advisory agreement fees | | | 11,860 | | | | 23,422 | | | | 10,133 | | | | 5,405 | | | | 9,047 | | | | 8,489 | | | | 24,716 | | | | 86,931 | | | | 7,339 | |
| Service agreement fees | | | 14,825 | | | | 29,278 | | | | 12,663 | | | | 2,334 | | | | 6,333 | | | | 7,428 | | | | 15,653 | | | | 25,888 | | | | 4,587 | |
| Distribution fees - Class B | | | 5,351 | | | | 14,941 | | | | 6,369 | | | | 154 | | | | – | | | | – | | | | – | | | | 1,431 | | | | – | |
| Distribution fees - Class C | | | 12,318 | | | | 5,542 | | | | 1,340 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Shareholder service fees | | | 14,814 | | | | 29,255 | | | | 12,639 | | | | – | | | | – | | | | – | | | | – | | | | 7,473 | | | | – | |
| Dividends | | | – | | | | – | | | | – | | | | 12 | | | | 935 | | | | 5,362 | | | | – | | | | 259,106 | | | | 48,110 | |
| Options written, at value (premium received $17,819 and $1,996,717) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (Note 6) | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 8,594 | | | | – | |
| Total liabilities | | | 558,310 | | | | 1,158,903 | | | | 146,049 | | | | 71,772 | | | | 16,474 | | | | 84,743 | | | | 163,473 | | | | 614,565 | | | | 60,270 | |
| Net Assets | | $ | 72,744,800 | | | $ | 143,894,679 | | | $ | 62,494,031 | | | $ | 16,110,412 | | | $ | 22,011,732 | | | $ | 25,727,845 | | | $ | 100,365,229 | | | $ | 210,013,504 | | | $ | 21,552,669 | |
| Net Assets consist of: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Common Stock/Shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Paid-in capital | | $ | 69,583,295 | | | $ | 130,451,508 | | | $ | 54,513,085 | | | $ | 16,110,597 | | | $ | 21,435,608 | | | $ | 24,659,964 | | | $ | 99,891,226 | | | $ | 206,605,069 | | | $ | 20,962,195 | |
Accumulated undistributed net investment income (loss) | | | (223,345 | ) | | | (211,870 | ) | | | (153,636 | ) | | | 145 | | | | 4,524 | | | | 5,987 | | | | 122,920 | | | | (171,982 | ) | | | 6,313 | |
Accumulated net realized gain (loss) on investments sold and foreign currency related transactions | | | 1,096,604 | | | | 2,518,533 | | | | 1,444,706 | | | | (330 | ) | | | (17,228 | ) | | | 12,223 | | | | 51,218 | | | | 151,725 | | | | 26,310 | |
Net unrealized appreciation (depreciation) of investments (including | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
appreciation (depreciation) of foreign currency related transactions) | | | 2,288,246 | | | | 11,136,508 | | | | 6,689,876 | | | | – | | | | 588,828 | | | | 1,049,671 | | | | 299,865 | | | | 3,428,692 | | | | 557,851 | |
| Net Assets | | $ | 72,744,800 | | | $ | 143,894,679 | | | $ | 62,494,031 | | | $ | 16,110,412 | | | $ | 22,011,732 | | | $ | 25,727,845 | | | $ | 100,365,229 | | | $ | 210,013,504 | | | $ | 21,552,669 | |
| Class A Shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets | | $ | 43,991,891 | | | $ | 110,418,813 | | | $ | 49,785,732 | | | $ | 15,889,508 | | | | | | | | | | | | | | | $ | 34,334,882 | | | | | |
| Shares of beneficial interest outstanding | | | 4,152,124 | | | | 9,619,774 | | | | 4,229,182 | | | | 15,889,665 | | | | | | | | | | | | | | | | 3,433,749 | | | | | |
| Net Asset Value and redemption price per share | | $ | 10.60 | | | $ | 11.48 | | | $ | 11.77 | | | $ | 1.00 | | | | | | | | | | | | | | | $ | 10.00 | | | | | |
| Sales charge of offering price2 | | | 0.65 | | | | 0.70 | | | | 0.72 | | | | – | | | | | | | | | | | | | | | | 0.47 | | | | | |
| Maximum offering price per share | | $ | 11.25 | | | $ | 12.18 | | | | $ 12.49 | | | $ | 1.00 | | | | | | | | | | | | | | | $ | 10.47 | | | | | |
| Class B Shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets | | $ | 8,691,998 | | | $ | 24,323,540 | | | $ | 10,475,597 | | | | 220,904 | | | | | | | | | | | | | | | $ | 2,304,334 | | | | | |
| Shares of beneficial interest outstanding | | | 814,415 | | | | 2,135,358 | | | | 912,780 | | | | 220,910 | | | | | | | | | | | | | | | | 230,331 | | | | | |
| Net Asset Value and redemption price per share3 | | $ | 10.67 | | | $ | 11.39 | | | $ | 11.48 | | | $ | 1.00 | | | | | | | | | | | | | | | $ | 10.00 | | | | | |
| Class C Shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets | | $ | 20,060,911 | | | $ | 9,152,326 | | | $ | 2,232,702 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares of beneficial interest outstanding | | | 1,878,437 | | | | 802,879 | | | | 194,379 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value and redemption price per share3 | | $ | 10.68 | | | $ | 11.40 | | | $ | 11.49 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class Y Shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets | | | | | | | | | | | | | | | | | | $ | 22,011,732 | | | $ | 25,727,845 | | | $ | 100,365,229 | | | $ | 171,593,626 | | | $ | 21,552,669 | |
| Shares of beneficial interest outstanding | | | | | | | | | | | | | | | | | | | 1,920,176 | | | | 2,376,557 | | | | 9,167,765 | | | | 17,218,807 | | | | 1,874,077 | |
| Net Asset Value and redemption price per share3 | | | | | | | | | | | | | | | | | | $ | 11.46 | | | $ | 10.83 | | | $ | 10.95 | | | $ | 9.97 | | | $ | 11.50 | |
| Class R6 Shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 1,780,662 | | | | | |
| Shares of beneficial interest outstanding | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 177,869 | | | | | |
| Net Asset Value and redemption price per share3 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 10.01 | | | | | |
| |
| 1 | See Note 12 for information on affiliated issuers. |
| 2 | Sales charge of offering price is 4.50% for the Core Bond and High Income Funds and 5.75% for the Conservative Allocation, Moderate Allocation, Aggressive Allocation, Diversified Income, Covered Call & Large Cap Value, Investors, Large Cap Growth, Mid Cap, Small Cap and International Stock Funds. |
| 3 | If applicable, redemption price per share may be reduced by a contingent deferred sales charge. |
| |
| See accompanying Notes to Financial Statements. |
| 28 | |
| Madison Funds | April 30, 2017 |
| |
| Statements of Assets and Liabilities as of April 30, 2017 (unaudited) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
High
Income
Fund | | Diversified
Income
Fund | | Covered Call &
Equity Income
Fund | | Dividend
Income
Fund | | Large Cap
Value
Fund | | Investors
Fund | | Mid Cap
Fund | | Small Cap
Fund | | International
Stock
Fund |
| |
| $ | 22,136,055 | | | $ | 133,238,269 | | | $ | 132,234,080 | | | $ | 89,818,017 | | | $ | 80,440,525 | | | $ | 225,333,268 | | | $ | 222,890,961 | | | $ | 90,098,213 | | | $ | 26,030,367 | |
| | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| |
| | 732,370 | | | | 25,480,395 | | | | (4,551,845 | ) | | | 13,401,055 | | | | 14,832,558 | | | | 64,964,736 | | | | 108,009,585 | | | | 17,688,166 | | | | 6,603,377 | |
| | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| | 22,868,425 | | | | 158,718,664 | | | | 127,682,235 | | | | 103,219,072 | | | | 95,273,083 | | | | 290,298,004 | | | | 330,900,546 | | | | 107,786,379 | | | | 32,633,744 | |
| | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 44 | | | | 5,174 | |
| |
| | 398,979 | | | | 512,734 | | | | 29,144 | | | | – | | | | 744,213 | | | | 3,712,224 | | | | 13,239,097 | | | | 258,390 | | | | 268,846 | |
| | 21,418 | | | | 66,676 | | | | 314,992 | | | | 53,067 | | | | 8,126 | | | | 110,826 | | | | 346,559 | | | | 37,381 | | | | 5,643 | |
| | 308,358 | | | | 665,630 | | | | 32,958 | | | | 166,236 | | | | 117,014 | | | | 197,159 | | | | 65,176 | | | | 70,788 | | | | 218,105 | |
| | – | | | | – | | | | – | | | | 12,658 | | | | – | | | | – | | | | – | | | | – | | | | – | |
| | – | | | | 2,288 | | | | 4,884 | | | | 1,934 | | | | 3,845 | | | | 45,270 | | | | 7,696 | | | | – | | | | – | |
| | 23,597,180 | | | | 159,965,992 | | | | 128,064,213 | | | | 103,452,967 | | | | 96,146,281 | | | | 294,363,483 | | | | 344,559,074 | | | | 108,152,982 | | | | 33,131,512 | |
| |
| |
| | 100,000 | | | | 54,485 | | | | 5,648,216 | | | | – | | | | – | | | | 2,469,835 | | | | 5,805,426 | | | | 91,366 | | | | 356,429 | |
| | 23,987 | | | | 85,346 | | | | 36,435 | | | | 985 | | | | 462,585 | | | | 421,196 | | | | 1,057,435 | | | | 11,689 | | | | 262,582 | |
| | 10,635 | | | | 84,821 | | | | 82,875 | | | | 63,289 | | | | 43,876 | | | | 177,732 | | | | 207,796 | | | | 88,418 | | | | 27,321 | |
| | 3,867 | | | | 26,099 | | | | 14,369 | | | | 29,535 | | | | 28,719 | | | | 46,408 | | | | 70,230 | | | | 22,104 | | | | 7,806 | |
| | 979 | | | | 8,053 | | | | – | | | | – | | | | 2,226 | | | | – | | | | 1,703 | | | | 277 | | | | 713 | |
| | – | | | | 8,762 | | | | 8,632 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| | 4,634 | | | | 35,957 | | | | 6,775 | | | | – | | | | 14,295 | | | | 14,834 | | | | 12,372 | | | | 883 | | | | 4,112 | |
| | 2,780 | | | | 1,511 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | – | | | | – | | | | 2,209,607 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| | 146,882 | | | | 305,034 | | | | 8,006,909 | | | | 93,809 | | | | 551,701 | | | | 3,130,005 | | | | 7,154,962 | | | | 214,737 | | | | 658,963 | |
| $ | 23,450,298 | | | $ | 159,660,958 | | | $ | 120,057,304 | | | $ | 103,359,158 | | | $ | 95,594,580 | | | $ | 291,233,478 | | | $ | 337,404,112 | | | $ | 107,938,245 | | | $ | 32,472,549 | |
| |
| |
| $ | 24,254,828 | | | $ | 132,927,088 | | | $ | 126,618,785 | | | $ | 87,941,957 | | | $ | 75,764,431 | | | $ | 216,966,775 | | | $ | 225,521,361 | | | $ | 84,413,921 | | | $ | 29,605,959 | |
| | 10,660 | | | | (64,878 | ) | | | (1,644,584 | ) | | | 127,149 | | | | 275,083 | | | | 509,291 | | | | (947,057 | ) | | | 726,346 | | | | 178,356 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (1,547,560 | ) | | | 1,318,353 | | | | (152,162 | ) | | | 1,888,997 | | | | 4,722,508 | | | | 8,792,676 | | | | 4,820,223 | | | | 5,109,510 | | | | (3,909,006 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 732,370 | | | | 25,480,395 | | | | (4,764,735 | ) | | | 13,401,055 | | | | 14,832,558 | | | | 64,964,736 | | | | 108,009,585 | | | | 17,688,468 | | | | 6,597,240 | |
| $ | 23,450,298 | | | $ | 159,660,958 | | | $ | 120,057,304 | | | $ | 103,359,158 | | | $ | 95,594,580 | | | $ | 291,233,478 | | | $ | 337,404,112 | | | $ | 107,938,245 | | | $ | 32,472,549 | |
| |
| $ | 21,117,184 | | | $ | 132,325,155 | | | $ | 18,804,034 | | | | | | | $ | 66,708,892 | | | $ | 73,437,689 | | | $ | 57,842,433 | | | $ | 3,896,645 | | | $ | 19,297,367 | |
| | 3,437,723 | | | | 8,731,354 | | | | 2,082,532 | | | | | | | | 4,577,271 | | | | 3,455,627 | | | | 6,508,428 | | | | 234,532 | | | | 1,504,837 | |
| $ | 6.14 | | | $ | 15.16 | | | $ | 9.03 | | | | | | | $ | 14.57 | | | $ | 21.25 | | | $ | 8.89 | | | $ | 16.61 | | | $ | 12.82 | |
| | 0.29 | | | | 0.92 | | | | 0.55 | | | | | | | | 0.89 | | | | 1.30 | | | | 0.54 | | | | 1.01 | | | | 0.78 | |
| $ | 6.43 | | | $ | 16.08 | | | $ | 9.58 | | | | | | | $ | 15.46 | | | $ | 22.55 | | | $ | 9.43 | | | $ | 17.62 | | | $ | 13.60 | |
| |
| $ | 1,597,849 | | | $ | 13,034,196 | | | | | | | | | | | $ | 3,587,988 | | | | | | | $ | 2,755,451 | | | $ | 455,650 | | | $ | 1,173,294 | |
| | 253,035 | | | | 854,642 | | | | | | | | | | | | 252,114 | | | | | | | | 372,162 | | | | 29,191 | | | | 93,630 | |
| $ | 6.31 | | | $ | 15.25 | | | | | | | | | | | $ | 14.23 | | | | | | | $ | 7.40 | | | $ | 15.61 | | | $ | 12.53 | |
| |
| | | | | $ | 14,301,607 | | | $ | 14,091,254 | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | 938,173 | | | | 1,627,196 | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | $ | 15.24 | | | $ | 8.66 | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
| $ | 735,265 | | | | | | | $ | 84,774,759 | | | $ | 103,359,158 | | | $ | 25,297,700 | | | $ | 211,098,305 | | | $ | 265,738,038 | | | $ | 103,585,950 | | | $ | 12,001,888 | |
| | 121,749 | | | | | | | | 9,215,255 | | | | 4,276,632 | | | | 1,736,806 | | | | 9,916,657 | | | | 28,776,128 | | | | 6,217,473 | | | | 934,950 | |
| $ | 6.04 | | | | | | | $ | 9.20 | | | $ | 24.17 | | | $ | 14.57 | | | $ | 21.29 | | | $ | 9.23 | | | $ | 16.66 | | | $ | 12.84 | |
| |
| | | | | | | | | $ | 2,387,257 | | | | | | | | | | | $ | 6,697,484 | | | $ | 11,068,190 | | | | | | | | | |
| | | | | | | | | | 257,789 | | | | | | | | | | | | 312,972 | | | | 1,178,584 | | | | | | | | | |
| | | | | | | | | $ | 9.26 | | | | | | | | | | | $ | 21.40 | | | $ | 9.39 | | | | | | | | | |
| |
| See accompanying Notes to Financial Statements. |
| | 29 |
| Madison Funds | April 30, 2017 |
| |
| Statements of Operations for the Six-Months Ended April 30, 2017 (unaudited) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Conservative
Allocation
Fund | | Moderate
Allocation
Fund | | Aggressive
Allocation
Fund | | Government
Money Market
Fund | | Tax-Free
Virginia
Fund | | Tax-Free
National
Fund | | High Quality
Bond Fund | | Core
Bond
Fund |
| Investment Income: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest | $ | 3,347 | | | $ | 5,783 | | | $ | 3,438 | | | $ | 43,545 | | | $ | 323,453 | | | $ | 404,114 | | | $ | 894,954 | | | $ | 3,108,698 | |
| Dividends | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Unaffiliated issuers | | 414,148 | | | | 814,777 | | | | 332,836 | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Affiliated issuers1 | | 306,397 | | | | 469,224 | | | | 168,414 | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Less: Foreign taxes withheld/reclaimed | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Total investment income | | 723,892 | | | | 1,289,784 | | | | 504,688 | | | | 43,545 | | | | 323,453 | | | | 404,114 | | | | 894,954 | | | | 3,108,698 | |
| Expenses:2 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Advisory agreement fees | | 71,729 | | | | 139,983 | | | | 60,411 | | | | 35,330 | | | | 54,292 | | | | 52,052 | | | | 152,234 | | | | 529,201 | |
| Services agreement fees | | 89,661 | | | | 174,979 | | | | 75,514 | | | | 13,249 | | | | 38,004 | | | | 45,546 | | | | 96,415 | | | | 157,577 | |
| Distribution fees - Class B | | 33,268 | | | | 92,854 | | | | 39,950 | | | | 1,200 | | | | – | | | | – | | | | – | | | | 9,069 | |
| Distribution fees - Class C | | 74,100 | | | | 33,889 | | | | 8,596 | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Shareholder servicing fees - Class A | | 53,858 | | | | 132,674 | | | | 59,321 | | | | – | | | | – | | | | – | | | | – | | | | 41,912 | |
| Shareholder servicing fees - Class B | | 11,075 | | | | 30,947 | | | | 13,282 | | | | – | | | | – | | | | – | | | | – | | | | 3,022 | |
| Shareholder servicing fees - Class C | | 24,696 | | | | 11,297 | | | | 2,865 | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Other expenses | | 1,262 | | | | 2,439 | | | | 1,039 | | | | 335 | | | | 379 | | | | 457 | | | | 1,825 | | | | 3,715 | |
Total expenses before reimbursement/waiver | | 359,649 | | | | 619,062 | | | | 260,978 | | | | 50,114 | | | | 92,675 | | | | 98,055 | | | | 250,474 | | | | 744,496 | |
| Less reimbursement/waiver3 | | – | | | | – | | | | – | | | | (8,163 | ) | | | – | | | | – | | | | – | | | | – | |
Total expenses net of reimbursement/waiver | | 359,649 | | | | 619,062 | | | | 260,978 | | | | 41,951 | | | | 92,675 | | | | 98,055 | | | | 250,474 | | | | 744,496 | |
| Net Investment Income (Loss) | | 364,243 | | | | 670,722 | | | | 243,710 | | | | 1,594 | | | | 230,778 | | | | 306,059 | | | | 644,480 | | | | 2,364,202 | |
| Net Realized and Unrealized Gain (Loss) on Investments | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net realized gain (loss) on investments (including net realized gain (loss) on foreign currency related transactions) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Options | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 1,353 | |
| Unaffiliated issuers | | 951,535 | | | | 1,633,134 | | | | 971,373 | | | | (162 | ) | | | (17,228 | ) | | | 12,254 | | | | 51,232 | | | | 150,555 | |
| Affiliated issuers1 | | 8,562 | | | | 91,233 | | | | 49,823 | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Capital gain distributions received from underlying funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Unaffiliated issuers | | 23,295 | | | | 11,614 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Affiliated issuers1 | | 342,627 | | | | 1,367,824 | | | | 670,415 | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Net change in unrealized appreciation (depreciation) on investments (including net | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| unrealized appreciation (depreciation) on foreign currency related transactions) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Options | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 9,225 | |
| Unaffiliated issuers | | 665,154 | | | | 4,123,381 | | | | 2,654,919 | | | | – | | | | (335,393 | ) | | | (513,476 | ) | | | (1,016,579 | ) | | | (3,175,192 | ) |
| Affiliated issuers1 | | 278,437 | | | | 1,765,116 | | | | 1,101,805 | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Net Realized and Unrealized Gain (Loss) on Investments and Option | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Transactions | | 2,269,610 | | | | 8,992,302 | | | | 5,448,335 | | | | (162 | ) | | | (352,621 | ) | | | (501,222 | ) | | | (965,347 | ) | | | (3,014,059 | ) |
| Net Increase (Decrease) in Net Assets from Operations | $ | 2,633,853 | | | $ | 9,663,024 | | | $ | 5,692,045 | | | $ | 1,432 | | | $ | (121,843 | ) | | $ | (195,163 | ) | | $ | (320,867 | ) | | $ | (649,857 | ) |
| 1 | See Note 12 for information on affiliated issuers. |
| 2 | See Note 3 for information on expenses. |
| 3 | See Note 3 for more information on these waivers. |
| |
| See accompanying Notes to Financial Statements. |
| 30 | |
| Madison Funds | April 30, 2017 |
| |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Corporate
Bond
Fund | | High
Income
Fund | | Diversified
Income
Fund | | Covered Call &
Equity Income
Fund | | Dividend
Income
Fund | | Large Cap
Value
Fund | | Investors
Fund | | Mid Cap
Fund | | Small Cap
Fund | | International
Stock
Fund |
| |
| $ | 412,151 | | | $ | 675,118 | | | $ | 897,954 | | | $ | 42,610 | | | $ | 5,981 | | | $ | 4,114 | | | $ | 44,232 | | | $ | 58,232 | | | $ | 11,073 | | | $ | 2,337 | |
| |
| | – | | | | 8,812 | | | | 1,381,763 | | | | 714,715 | | | | 1,560,444 | | | | 994,830 | | | | 2,071,784 | | | | 1,284,581 | | | | 1,500,495 | | | | 464,567 | |
| | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| | – | | | | – | | | | (15,140 | ) | | | – | | | | (16,827 | ) | | | – | | | | (69,321 | ) | | | (14,290 | ) | | | – | | | | (49,752 | ) |
| | 412,151 | | | | 683,930 | | | | 2,264,577 | | | | 757,325 | | | | 1,549,598 | | | | 998,944 | | | | 2,046,695 | | | | 1,328,523 | | | | 1,511,568 | | | | 417,152 | |
| |
| | 45,989 | | | | 64,581 | | | | 510,308 | | | | 477,414 | | | | 390,382 | | | | 284,067 | | | | 1,072,776 | | | | 1,223,250 | | | | 534,457 | | | | 162,944 | |
| | 28,743 | | | | 23,484 | | | | 157,018 | | | | 82,262 | | | | 182,178 | | | | 185,934 | | | | 280,285 | | | | 413,231 | | | | 133,614 | | | | 46,556 | |
| | – | | | | 6,072 | | | | 49,699 | | | | – | | | | – | | | | 13,937 | | | | – | | | | 10,874 | | | | 1,705 | | | | 4,466 | |
| | – | | | | – | | | | 52,073 | | | | 51,981 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| | – | | | | 26,226 | | | | 162,144 | | | | 23,617 | | | | – | | | | 81,989 | | | | 87,919 | | | | 69,685 | | | | 4,614 | | | | 22,781 | |
| | – | | | | 2,024 | | | | 16,524 | | | | – | | | | – | | | | 4,632 | | | | – | | | | 3,625 | | | | 568 | | | | 1,489 | |
| | – | | | | – | | | | 17,354 | | | | 17,327 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| | 407 | | | | 418 | | | | 2,743 | | | | 1,913 | | | | 1,823 | | | | 1,871 | | | | 5,011 | | | | 5,669 | | | | 1,866 | | | | 559 | |
| | 75,139 | | | | 122,805 | | | | 967,863 | | | | 654,514 | | | | 574,383 | | | | 572,430 | | | | 1,445,991 | | | | 1,726,334 | | | | 676,824 | | | | 238,795 | |
| | – | | | | – | | | | – | | | | – | | | | (78,076 | ) | | | – | | | | – | | | | – | | | | – | | | | – | |
| | 75,139 | | | | 122,805 | | | | 967,863 | | | | 654,514 | | | | 496,307 | | | | 572,430 | | | | 1,445,991 | | | | 1,726,334 | | | | 676,824 | | | | 238,795 | |
| | 337,012 | | | | 561,125 | | | | 1,296,714 | | | | 102,811 | | | | 1,053,291 | | | | 426,514 | | | | 600,704 | | | | (397,811 | ) | | | 834,744 | | | | 178,357 | |
| |
| |
| |
| | – | | | | – | | | | – | | | | 3,458,819 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| | 26,329 | | | | 198,727 | | | | 1,491,294 | | | | 782,131 | | | | 1,943,980 | | | | 4,963,272 | | | | 9,343,404 | | | | 4,984,707 | | | | 5,287,036 | | | | (708,042 | ) |
| | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| |
| | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| |
| |
| | – | | | | – | | | | – | | | | (528,253 | ) | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| | (333,840 | ) | | | 236,432 | | | | 6,631,228 | | | | 1,246,729 | | | | 8,369,113 | | | | 3,955,478 | | | | 22,758,084 | | | | 30,408,287 | | | | 10,650,791 | | | | 2,832,569 | |
| | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| |
| | (307,511 | ) | | | 435,159 | | | | 8,122,522 | | | | 4,959,426 | | | | 10,313,093 | | | | 8,918,750 | | | | 32,101,488 | | | | 35,392,994 | | | | 15,937,827 | | | | 2,124,527 | |
| $ | 29,501 | | | $ | 996,284 | | | $ | 9,419,236 | | | $ | 5,062,237 | | | $ | 11,366,384 | | | $ | 9,345,264 | | | $ | 32,702,192 | | | $ | 34,995,183 | | | $ | 16,772,571 | | | $ | 2,302,884 | |
| |
| See accompanying Notes to Financial Statements. |
| | 31 |
| Madison Funds | April 30, 2017 |
| |
| Statements of Changes in Net Assets |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Conservative Allocation Fund | | Moderate Allocation Fund | | Aggressive Allocation Fund | | Government Money
Market Fund |
| | Six-Months
Ended
April 30, 2017
(unaudited) | | Year
Ended
October 31,
2016 | | Six-Months
Ended
April 30, 2017
(unaudited) | | Year
Ended
October 31,
2016 | | Six-Months
Ended
April 30, 2017
(unaudited) | | Year
Ended
October 31,
2016 | | Six-Months
Ended
April 30, 2017
(unaudited) | | Year
Ended
October 31,
2016 |
| Net Assets at beginning of period | $ | 73,151,961 | | | $ | 75,796,970 | | | $ | 138,815,574 | | | $ | 145,999,790 | | | $ | 58,816,082 | | | $ | 61,816,629 | | | $ | 18,894,157 | | | $ | 19,309,804 | |
| Increase (decrease) in net assets from operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | 364,243 | | | | 763,576 | | | | 670,722 | | | | 1,392,864 | | | | 243,710 | | | | 558,905 | | | | 1,594 | | | | – | |
| Net realized gain (loss) | | 1,326,019 | | | | 1,363,827 | | | | 3,103,805 | | | | 4,963,243 | | | | 1,691,611 | | | | 2,040,839 | | | | (162 | ) | | | (146 | ) |
| Net change in unrealized appreciation (depreciation) | | 943,591 | | | | (136,899 | ) | | | 5,888,497 | | | | (2,595,597 | ) | | | 3,756,724 | | | | (1,128,528 | ) | | | – | | | | – | |
Net increase (decrease) in net assets from operations | | 2,633,853 | | | | 1,990,504 | | | | 9,663,024 | | | | 3,760,510 | | | | 5,692,045 | | | | 1,471,216 | | | | 1,432 | | | | (146 | ) |
| Distributions to shareholders from: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | (467,208 | ) | | | (672,254 | ) | | | (1,426,923 | ) | | | (1,100,928 | ) | | | (518,656 | ) | | | (402,397 | ) | | | (1,449 | ) | | | – | |
| Class B | | (52,730 | ) | | | (70,918 | ) | | | (153,399 | ) | | | (158,540 | ) | | | (61,878 | ) | | | (87,614 | ) | | | – | | | | – | |
| Class C | | (116,395 | ) | | | (145,655 | ) | | | (56,550 | ) | | | (52,784 | ) | | | (14,374 | ) | | | (17,856 | ) | | | – | | | | – | |
| Net realized gains | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | (615,779 | ) | | | (1,385,777 | ) | | | (2,986,528 | ) | | | (5,707,228 | ) | | | (1,202,389 | ) | | | (3,649,031 | ) | | | – | | | | – | |
| Class B | | (129,617 | ) | | | (298,666 | ) | | | (719,238 | ) | | | (1,567,987 | ) | | | (283,061 | ) | | | (971,280 | ) | | | – | | | | – | |
| Class C | | (280,281 | ) | | | (588,819 | ) | | | (265,144 | ) | | | (522,047 | ) | | | (65,754 | ) | | | (197,949 | ) | | | – | | | | – | |
| Total distributions | | (1,662,010 | ) | | | (3,162,089 | ) | | | (5,607,782 | ) | | | (9,109,514 | ) | | | (2,146,112 | ) | | | (5,326,127 | ) | | | (1,449 | ) | | | – | |
| Capital Stock transactions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares sold | | 4,279,941 | | | | 5,089,665 | | | | 6,389,027 | | | | 10,903,837 | | | | 2,962,907 | | | | 5,215,326 | | | | 2,172,622 | | | | 6,602,254 | |
Issued to shareholders in reinvestment of distributions | | 1,082,283 | | | | 2,056,145 | | | | 4,407,214 | | | | 6,801,086 | | | | 1,720,242 | | | | 4,049,878 | | | | 1,405 | | | | – | |
| Shares redeemed | | (5,684,082 | ) | | | (8,694,132 | ) | | | (7,667,671 | ) | | | (16,675,755 | ) | | | (2,997,014 | ) | | | (7,965,069 | ) | | | (4,579,939 | ) | | | (7,382,598 | ) |
Net increase (decrease) from capital stock transactions | | (321,858 | ) | | | (1,548,322 | ) | | | 3,128,570 | | | | 1,029,168 | | | | 1,686,135 | | | | 1,300,135 | | | | (2,405,912 | ) | | | (780,344 | ) |
| Class B Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares sold | | 279,683 | | | | 1,304,974 | | | | 666,285 | | | | 2,696,102 | | | | 246,108 | | | | 1,166,372 | | | | 185,292 | | | | 631,365 | |
Issued to shareholders in reinvestment of distributions | | 182,340 | | | | 369,472 | | | | 871,907 | | | | 1,724,768 | | | | 344,880 | | | | 1,055,906 | | | | – | | | | – | |
| Shares redeemed | | (1,067,683 | ) | | | (2,416,986 | ) | | | (3,415,917 | ) | | | (7,260,686 | ) | | | (1,833,878 | ) | | | (2,652,891 | ) | | | (563,108 | ) | | | (266,522 | ) |
Net increase (decrease) from capital stock transactions | | (605,660 | ) | | | (742,540 | ) | | | (1,877,725 | ) | | | (2,839,816 | ) | | | (1,242,890 | ) | | | (430,613 | ) | | | (377,816 | ) | | | 364,843 | |
| Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares sold | | 770,267 | | | | 2,509,046 | | | | 580,592 | | | | 816,117 | | | | 178,268 | | | | 118,452 | | | | | | | | | |
Issued to shareholders in reinvestment of distributions | | 396,676 | | | | 734,474 | | | | 321,694 | | | | 574,652 | | | | 72,103 | | | | 215,805 | | | | | | | | | |
| Shares redeemed | | (1,618,429 | ) | | | (2,426,082 | ) | | | (1,129,268 | ) | | | (1,415,333 | ) | | | (561,600 | ) | | | (349,415 | ) | | | | | | | | |
Net increase (decrease) from capital stock transactions | | (451,486 | ) | | | 817,438 | | | | (226,982 | ) | | | (24,564 | ) | | | (311,229 | ) | | | (15,158 | ) | | | | | | | | |
| Total net increase (decrease) from capital stock transactions | | (1,379,004 | ) | | | (1,473,424 | ) | | | 1,023,863 | | | | (1,835,212 | ) | | | 132,016 | | | | 854,364 | | | | (2,783,728 | ) | | | (415,501 | ) |
| Total increase (decrease) in net assets | | (407,161 | ) | | | (2,645,009 | ) | | | 5,079,105 | | | | (7,184,216 | ) | | | 3,677,949 | | | | (3,000,547 | ) | | | (2,783,745 | ) | | | (415,647 | ) |
| Net Assets at end of period | $ | 72,744,800 | | | $ | 73,151,961 | | | $ | 143,894,679 | | | $ | 138,815,574 | | | $ | 62,494,031 | | | $ | 58,816,082 | | | $ | 16,110,412 | | | $ | 18,894,157 | |
Undistributed net investment income (loss) included in net assets | $ | (223,345 | ) | | $ | 48,745 | | | $ | (211,870 | ) | | $ | 754,270 | | | $ | (153,636 | ) | | $ | 197,562 | | | $ | 145 | | | $ | – | |
| Capital Share transactions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares sold | | 408,681 | | | | 491,452 | | | | 568,654 | | | | 990,487 | | | | 260,490 | | | | 473,774 | | | | 2,172,622 | | | | 6,602,254 | |
Issued to shareholders in reinvestment of distributions. | | 105,086 | | | | 201,467 | | | | 403,961 | | | | 636,210 | | | | 155,537 | | | | 380,628 | | | | 1,405 | | | | – | |
| Shares redeemed | | (544,053 | ) | | | (841,621 | ) | | | (681,655 | ) | | | (1,508,056 | ) | | | (262,000 | ) | | | (723,719 | ) | | | (4,579,939 | ) | | | (7,382,599 | ) |
| Net increase (decrease) in shares outstanding | | (30,286 | ) | | | (148,702 | ) | | | 290,960 | | | | 118,641 | | | | 154,027 | | | | 130,683 | | | | (2,405,912 | ) | | | (780,345 | ) |
| Class B Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares sold | | 26,681 | | | | 126,839 | | | | 59,967 | | | | 248,262 | | | | 22,382 | | | | 107,735 | | | | 185,293 | | | | 631,365 | |
Issued to shareholders in reinvestment of distributions | | 17,571 | | | | 36,060 | | | | 80,360 | | | | 162,102 | | | | 31,904 | | | | 101,238 | | | | – | | | | – | |
| Shares redeemed | | (101,657 | ) | | | (232,767 | ) | | | (306,607 | ) | | | (664,147 | ) | | | (165,278 | ) | | | (247,771 | ) | | | (563,108 | ) | | | (266,522 | ) |
| Net increase (decrease) in shares outstanding | | (57,405 | ) | | | (69,868 | ) | | | (166,280 | ) | | | (253,783 | ) | | | (110,992 | ) | | | (38,798 | ) | | | (377,815 | ) | | | 364,843 | |
| Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares sold | | 73,224 | | | | 241,008 | | | | 52,071 | | | | 74,585 | | | | 15,853 | | | | 11,172 | | | | | | | | | |
Issued to shareholders in reinvestment of distributions | | 38,222 | | | | 71,673 | | | | 29,622 | | | | 53,958 | | | | 6,664 | | | | 20,671 | | | | | | | | | |
| Shares redeemed | | (153,741 | ) | | | (233,566 | ) | | | (101,532 | ) | | | (130,202 | ) | | | (50,556 | ) | | | (32,375 | ) | | | | | | | | |
| Net increase (decrease) in shares outstanding | | (42,295 | ) | | | 79,115 | | | | (19,839 | ) | | | (1,659 | ) | | | (28,039 | ) | | | (532 | ) | | | | | | | | |
| |
| See accompanying Notes to Financial Statements. |
| 32 | |
| Madison Funds | April 30, 2017 |
| |
| Statements of Changes in Net Assets |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Tax-Free Virginia Fund | | Tax-Free National Fund | | High Quality Bond Fund | | Core Bond Fund |
| | Six-Months
Ended
April 30, 2017
(unaudited) | | Year
Ended
October 31,
2016 | | Six-Months
Ended
April 30, 2017
(unaudited) | | Year
Ended
October 31,
2016 | | Six-Months
Ended
April 30, 2017
(unaudited) | | Year
Ended
October 31,
2016 | | Six-Months
Ended
April 30, 2017
(unaudited) | | Year
Ended
October 31,
2016 |
| Net Assets at beginning of period | $ | 22,350,143 | | | $ | 22,659,372 | | | $ | 27,332,854 | | | $ | 27,744,109 | | | $ | 105,806,832 | | | $ | 102,551,509 | | | $ | 216,822,576 | | | $ | 223,858,567 | |
| Increase (decrease) in net assets from operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | 230,778 | | | | 479,572 | | | | 306,059 | | | | 634,820 | | | | 644,480 | | | | 1,172,898 | | | | 2,364,202 | | | | 4,874,355 | |
| Net realized gain (loss) | | (17,228 | ) | | | 36,276 | | | | 12,254 | | | | 181,114 | | | | 51,232 | | | | 124,354 | | | | 151,908 | | | | 1,588,631 | |
| Net change in unrealized appreciation (depreciation) | | (335,393 | ) | | | 152,467 | | | | (513,476 | ) | | | 211,121 | | | | (1,016,579 | ) | | | 359,047 | | | | (3,165,967 | ) | | | 3,039,357 | |
| Net increase (decrease) in net assets from operations | | (121,843 | ) | | | 668,315 | | | | (195,163 | ) | | | 1,027,055 | | | | (320,867 | ) | | | 1,656,299 | | | | (649,857 | ) | | | 9,502,343 | |
| Distributions to shareholders from: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | (369,098 | ) | | | (739,467 | ) |
| Class B | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | (17,410 | ) | | | (39,742 | ) |
| Class Y | | (228,220 | ) | | | (481,306 | ) | | | (302,716 | ) | | | (636,648 | ) | | | (633,196 | ) | | | (1,157,858 | ) | | | (2,151,190 | ) | | | (4,543,120 | ) |
| Class R6 | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | (22,345 | ) | | | (44,763 | ) |
| Net realized gains | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | (175,602 | ) | | | (271,770 | ) |
| Class B | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | (13,156 | ) | | | (23,795 | ) |
| Class Y | | (36,276 | ) | | | (69,797 | ) | | | (181,117 | ) | | | (162,274 | ) | | | (124,222 | ) | | | (346,318 | ) | | | (917,720 | ) | | | (1,544,568 | ) |
| Class R6 | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | (9,658 | ) | | | (14,467 | ) |
| Total distributions | | (264,496 | ) | | | (551,103 | ) | | | (483,833 | ) | | | (798,922 | ) | | | (757,418 | ) | | | (1,504,176 | ) | | | (3,676,179 | ) | | | (7,221,692 | ) |
| Capital Stock transactions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares sold | | | | | | | | | | | | | | | | | | | | | | | | | | 2,352,424 | | | | 5,672,094 | |
| Issued to shareholders in reinvestment of distributions | | | | | | | | | | | | | | | | | | | | | | | | | | 542,199 | | | | 1,005,724 | |
| Shares redeemed | | | | | | | | | | | | | | | | | | | | | | | | | | (2,203,070 | ) | | | (5,542,231 | ) |
| Net increase from capital stock transactions | | | | | | | | | | | | | | | | | | | | | | | | | | 691,553 | | | | 1,135,587 | |
| Class B Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares sold | | | | | | | | | | | | | | | | | | | | | | | | | | 80,846 | | | | 107,880 | |
| Issued to shareholders in reinvestment of distributions | | | | | | | | | | | | | | | | | | | | | | | | | | 30,566 | | | | 63,538 | |
| Shares redeemed | | | | | | | | | | | | | | | | | | | | | | | | | | (330,381 | ) | | | (554,763 | ) |
| Net decrease from capital stock transactions | | | | | | | | | | | | | | | | | | | | | | | | | | (218,969 | ) | | | (383,345 | ) |
| Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares sold | | 271,974 | | | | 536,972 | | | | 277,689 | | | | 983,897 | | | | 11,892,910 | | | | 34,317,491 | | | | 4,307,641 | | | | 3,925,508 | |
| Issued to shareholders in reinvestment of distributions | | 257,140 | | | | 535,004 | | | | 437,164 | | | | 716,733 | | | | 714,227 | | | | 1,386,389 | | | | 725,828 | | | | 1,462,479 | |
| Shares redeemed | | (481,186 | ) | | | (1,498,417 | ) | | | (1,640,866 | ) | | | (2,340,018 | ) | | | (16,970,455 | ) | | | (32,600,680 | ) | | | (7,929,931 | ) | | | (15,618,847 | ) |
| Net increase (decrease) from capital stock transactions | | 47,928 | | | | (426,441 | ) | | | (926,013 | ) | | | (639,388 | ) | | | (4,363,318 | ) | | | 3,103,200 | | | | (2,896,462 | ) | | | (10,230,860 | ) |
| Class R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares sold | | | | | | | | | | | | | | | | | | | | | | | | | | 108,963 | | | | 387,488 | |
| Issued to shareholders in reinvestment of distributions | | | | | | | | | | | | | | | | | | | | | | | | | | 32,003 | | | | 59,231 | |
| Shares redeemed | | | | | | | | | | | | | | | | | | | | | | | | | | (200,124 | ) | | | (284,743 | ) |
| Net increase (decrease) from capital stock transactions | | | | | | | | | | | | | | | | | | | | | | | | | | (59,158 | ) | | | 161,976 | |
| Total net increase (decrease) from capital stock transactions | | 47,928 | | | | (426,441 | ) | | | (926,013 | ) | | | (639,388 | ) | | | (4,363,318 | ) | | | 3,103,200 | | | | (2,483,036 | ) | | | (9,316,642 | ) |
| Total increase (decrease) in net assets | | (338,411 | ) | | | (309,229 | ) | | | (1,605,009 | ) | | | (411,255 | ) | | | (5,441,603 | ) | | | 3,255,323 | | | | (6,809,072 | ) | | | (7,035,991 | ) |
| Net Assets at end of period | $ | 22,011,732 | | | $ | 22,350,143 | | | $ | 25,727,845 | | | $ | 27,332,854 | | | $ | 100,365,229 | | | $ | 105,806,832 | | | $ | 210,013,504 | | | $ | 216,822,576 | |
| Undistributed net investment income (loss) included in net assets | $ | 4,524 | | | $ | 1,966 | | | $ | 5,987 | | | $ | 2,644 | | | $ | 122,920 | | | $ | 111,636 | | | $ | (171,982 | ) | | $ | 23,859 | |
| Capital Share transactions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares sold | | | | | | | | | | | | | | | | | | | | | | | | | | 235,573 | | | | 559,373 | |
| Issued to shareholders in reinvestment of distributions | | | | | | | | | | | | | | | | | | | | | | | | | | 54,593 | | | | 99,789 | |
| Shares redeemed | | | | | | | | | | | | | | | | | | | | | | | | | | (220,973 | ) | | | (545,982 | ) |
| Net increase in shares outstanding | | | | | | | | | | | | | | | | | | | | | | | | | | 69,193 | | | | 113,180 | |
| Class B Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares sold | | | | | | | | | | | | | | | | | | | | | | | | | | 8,045 | | | | 10,600 | |
| Issued to shareholders in reinvestment of distributions | | | | | | | | | | | | | | | | | | | | | | | | | | 3,078 | | | | 6,318 | |
| Shares redeemed | | | | | | | | | | | | | | | | | | | | | | | | | | (33,100 | ) | | | (54,634 | ) |
| Net decrease in shares outstanding | | | | | | | | | | | | | | | | | | | | | | | | | | (21,977 | ) | | | (37,716 | ) |
| Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares sold | | 23,724 | | | | 45,709 | | | | 25,807 | | | | 87,841 | | | | 1,089,288 | | | | 3,101,143 | | | | 433,941 | | | | 387,789 | |
| Issued to shareholders in reinvestment of distributions | | 22,611 | | | | 45,640 | | | | 40,800 | | | | 64,336 | | | | 65,686 | | | | 125,606 | | | | 73,306 | | | | 145,618 | |
| Shares redeemed | | (42,134 | ) | | | (127,611 | ) | | | (151,695 | ) | | | (209,526 | ) | | | (1,554,501 | ) | | | (2,946,328 | ) | | | (796,970 | ) | | | (1,544,225 | ) |
| Net increase (decrease) in shares outstanding | | 4,201 | | | | (36,262 | ) | | | (85,088 | ) | | | (57,349 | ) | | | (399,527 | ) | | | 280,421 | | | | (289,723 | ) | | | (1,010,818 | ) |
| Class R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares sold | | | | | | | | | | | | | | | | | | | | | | | | | | 10,921 | | | | 38,493 | |
| Issued to shareholders in reinvestment of distributions | | | | | | | | | | | | | | | | | | | | | | | | | | 3,219 | | | | 5,875 | |
| Shares redeemed | | | | | | | | | | | | | | | | | | | | | | | | | | (20,074 | ) | | | (28,318 | ) |
| Net increase (decrease) in shares outstanding | | | | | | | | | | | | | | | | | | | | | | | | | | (5,934 | ) | | | 16,050 | |
| |
| See accompanying Notes to Financial Statements. |
| | 33 |
| Madison Funds | April 30, 2017 |
| |
| Statements of Changes in Net Assets |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Corporate Bond Fund | | High Income Fund | | Diversified Income Fund | | Covered Call &
Equity Income Fund |
| | Six-Months
Ended
April 30, 2017
(unaudited) | | Year
Ended
October 31,
2016 | | Six-Months
Ended
April 30, 2017
(unaudited) | | Year
Ended
October 31,
2016 | | Six-Months
Ended
April 30, 2017
(unaudited) | | Year
Ended
October 31,
2016 | | Six-Months
Ended
April 30, 2017
(unaudited) | | Year
Ended
October 31,
2016 |
| Net Assets at beginning of period | $ | 23,845,523 | | | $ | 23,545,115 | | | $ | 23,766,340 | | | $ | 25,503,956 | | | $ | 154,998,713 | | | $ | 147,233,643 | | | $ | 106,122,961 | | | $ | 89,071,393 | |
| Increase (decrease) in net assets from operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | 337,012 | | | | 670,481 | | | | 561,125 | | | | 1,168,704 | | | | 1,296,714 | | | | 2,313,564 | | | | 102,811 | | | | 239,728 | |
| Net realized gain (loss) | | 26,329 | | | | 87,743 | | | | 198,727 | | | | (1,432,655 | ) | | | 1,491,294 | | | | 5,660,656 | | | | 4,240,950 | | | | 1,329,854 | |
| Net change in unrealized appreciation (depreciation) | | (333,840 | ) | | | 708,932 | | | | 236,432 | | | | 1,774,630 | | | | 6,631,228 | | | | (414,885 | ) | | | 718,476 | | | | 2,302,123 | |
| Net increase in net assets from operations | | 29,501 | | | | 1,467,156 | | | | 996,284 | | | | 1,510,679 | | | | 9,419,236 | | | | 7,559,335 | | | | 5,062,237 | | | | 3,871,705 | |
| Distributions to shareholders from: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | – | | | | – | | | | (497,425 | ) | | | (1,066,848 | ) | | | (1,213,589 | ) | | | (2,169,597 | ) | | | (278,045 | ) | | | (774,944 | ) |
| Class B | | – | | | | – | | | | (30,930 | ) | | | (65,575 | ) | | | (73,770 | ) | | | (134,801 | ) | | | – | | | | – | |
| Class C | | – | | | | – | | | | – | | | | – | | | | (77,302 | ) | | | (129,487 | ) | | | (208,755 | ) | | | (542,263 | ) |
| Class Y | | (333,581 | ) | | | (672,447 | ) | | | (27,026 | ) | | | (40,857 | ) | | | – | | | | – | | | | (1,223,548 | ) | | | (2,810,240 | ) |
| Class R6 | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | (37,047 | ) | | | (131,637 | ) |
| Net realized gains | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | – | | | | – | | | | – | | | | – | | | | (4,582,973 | ) | | | (2,746,768 | ) | | | (428,064 | ) | | | (289,318 | ) |
| Class B | | – | | | | – | | | | – | | | | – | | | | (466,919 | ) | | | (303,965 | ) | | | – | | | | – | |
| Class C | | – | | | | – | | | | – | | | | – | | | | (487,580 | ) | | | (286,956 | ) | | | (321,419 | ) | | | (178,928 | ) |
| Class Y | | (87,745 | ) | | | (77,757 | ) | | | – | | | | – | | | | – | | | | – | | | | (1,634,708 | ) | | | (1,036,903 | ) |
| Class R6 | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | (76,472 | ) | | | (50,094 | ) |
| Total distributions | | (421,326 | ) | | | (750,204 | ) | | | (555,381 | ) | | | (1,173,280 | ) | | | (6,902,133 | ) | | | (5,771,574 | ) | | | (4,208,058 | ) | | | (5,814,327 | ) |
| Capital Stock transactions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares sold | | | | | | | | | | 739,865 | | | | 987,103 | | | | 6,804,227 | | | | 17,024,600 | | | | 4,086,709 | | | | 5,213,975 | |
| Issued to shareholders in reinvestment of distributions | | | | | | | | | | 483,900 | | | | 1,038,328 | | | | 5,761,823 | | | | 4,880,118 | | | | 680,077 | | | | 1,031,927 | |
| Shares redeemed | | | | | | | | | | (1,901,263 | ) | | | (4,074,755 | ) | | | (10,529,817 | ) | | | (16,208,159 | ) | | | (4,380,475 | ) | | | (3,700,248 | ) |
| Net increase (decrease) from capital stock transactions | | | | | | | | | | (677,498 | ) | | | (2,049,324 | ) | | | 2,036,233 | | | | 5,696,559 | | | | 386,311 | | | | 2,545,654 | |
| Class B Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares sold | | | | | | | | | | 4,867 | | | | 94,802 | | | | 517,077 | | | | 1,489,442 | | | | | | | | | |
| Issued to shareholders in reinvestment of distributions | | | | | | | | | | 27,570 | | | | 57,051 | | | | 540,689 | | | | 438,764 | | | | | | | | | |
| Shares redeemed | | | | | | | | | | (117,512 | ) | | | (213,252 | ) | | | (1,530,739 | ) | | | (2,233,370 | ) | | | | | | | | |
| Net decrease from capital stock transactions | | | | | | | | | | (85,075 | ) | | | (61,399 | ) | | | (472,973 | ) | | | (305,164 | ) | | | | | | | | |
| Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares sold | | | | | | | | | | | | | | | | | | 910,826 | | | | 2,021,672 | | | | 1,393,127 | | | | 5,551,503 | |
| Issued to shareholders in reinvestment of distributions | | | | | | | | | | | | | | | | | | 564,882 | | | | 416,443 | | | | 409,056 | | | | 549,417 | |
| Shares redeemed | | | | | | | | | | | | | | | | | | (893,826 | ) | | | (1,852,201 | ) | | | (1,286,671 | ) | | | (1,596,838 | ) |
| Net increase from capital stock transactions | | | | | | | | | | | | | | | | | | 581,882 | | | | 585,914 | | | | 515,512 | | | | 4,504,082 | |
| Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares sold | | 117,688 | | | | 183,681 | | | | 1,499,428 | | | | 1,892,024 | | | | | | | | | | | | 24,818,950 | | | | 25,903,265 | |
| Issued to shareholders in reinvestment of distributions | | 20,977 | | | | 32,936 | | | | 27,026 | | | | 40,749 | | | | | | | | | | | | 2,818,200 | | | | 3,764,499 | |
| Shares redeemed | | (2,039,694 | ) | | | (633,161 | ) | | | (1,520,826 | ) | | | (1,897,065 | ) | | | | | | | | | | | (14,697,657 | ) | | | (18,060,929 | ) |
| Net increase (decrease) from capital stock transactions | | (1,901,029 | ) | | | (416,544 | ) | | | 5,628 | | | | 35,708 | | | | | | | | | | | | 12,939,493 | | | | 11,606,835 | |
| Class R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares sold | | | | | | | | | | | | | | | | | | | | | | | | | | 332,180 | | | | 719,403 | |
| Issued to shareholders in reinvestment of distributions | | | | | | | | | | | | | | | | | | | | | | | | | | 113,518 | | | | 181,731 | |
| Shares redeemed | | | | | | | | | | | | | | | | | | | | | | | | | | (1,206,850 | ) | | | (563,515 | ) |
| Net increase (decrease) from capital stock transactions | | | | | | | | | | | | | | | | | | | | | | | | | | (761,152 | ) | | | 337,619 | |
| Total net increase (decrease) from capital stock transactions | | (1,901,029 | ) | | | (416,544 | ) | | | (756,945 | ) | | | (2,075,015 | ) | | | 2,145,142 | | | | 5,977,309 | | | | 13,080,164 | | | | 18,994,190 | |
| Total increase (decrease) in net assets | | (2,292,854 | ) | | | 300,408 | | | | (316,042 | ) | | | (1,737,616 | ) | | | 4,662,245 | | | | 7,765,070 | | | | 13,934,343 | | | | 17,051,568 | |
| Net Assets at end of period | $ | 21,552,669 | | | $ | 23,845,523 | | | $ | 23,450,298 | | | $ | 23,766,340 | | | $ | 159,660,958 | | | $ | 154,998,713 | | | $ | 120,057,304 | | | $ | 106,122,961 | |
| Undistributed net investment income (loss) included in net assets | $ | 6,313 | | | $ | 2,882 | | | $ | 10,660 | | | $ | 4,916 | | | $ | (64,878) | | | $ | 3,069 | | | $ | (1,644,584 | ) | | $ | – | |
| Capital Share transactions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares sold | | | | | | | | | | 121,415 | | | | 170,049 | | | | 453,005 | | | | 1,149,706 | | | | 449,453 | | | | 581,978 | |
| Issued to shareholders in reinvestment of distributions | | | | | | | | | | 79,613 | | | | 178,480 | | | | 388,100 | | | | 335,770 | | | | 75,351 | | | | 115,406 | |
| Shares redeemed | | | | | | | | | | (312,706 | ) | | | (704,267 | ) | | | (701,981 | ) | | | (1,100,532 | ) | | | (481,495 | ) | | | (413,649 | ) |
| Net increase (decrease) in shares outstanding | | | | | | | | | | (111,678 | ) | | | (355,738 | ) | | | 139,124 | | | | 384,944 | | | | 43,309 | | | | 283,735 | |
| Class B Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares sold | | | | | | | | | | 788 | | | | 15,627 | | | | 34,183 | | | | 100,171 | | | | | | | | | |
| Issued to shareholders in reinvestment of distributions | | | | | | | | | | 4,412 | | | | 9,548 | | | | 36,231 | | | | 30,137 | | | | | | | | | |
| Shares redeemed | | | | | | | | | | (18,767 | ) | | | (35,765 | ) | | | (101,245 | ) | | | (151,055 | ) | | | | | | | | |
| Net increase decrease in shares outstanding | | | | | | | | | | (13,567 | ) | | | (10,590 | ) | | | (30,831 | ) | | | (20,747 | ) | | | | | | | | |
| Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares sold | | | | | | | | | | | | | | | | | | 60,185 | | | | 135,512 | | | | 159,818 | | | | 642,363 | |
| Issued to shareholders in reinvestment of distributions | | | | | | | | | | | | | | | | | | 37,854 | | | | 28,605 | | | | 47,144 | | | | 63,469 | |
| Shares redeemed | | | | | | | | | | | | | | | | | | (59,379 | ) | | | (125,613 | ) | | | (146,968 | ) | | | (183,825 | ) |
| Net increase in shares outstanding | | | | | | | | | | | | | | | | | | 38,660 | | | | 38,504 | | | | 59,994 | | | | 522,007 | |
| Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares sold | | 10,317 | | | | 15,894 | | | | 252,274 | | | | 331,236 | | | | | | | | | | | | 2,680,168 | | | | 2,840,804 | |
| Issued to shareholders in reinvestment of distributions | | 1,843 | | | | 2,872 | | | | 4,525 | | | | 7,124 | | | | | | | | | | | | 306,652 | | | | 414,352 | |
| Shares redeemed | | (177,539 | ) | | | (55,577 | ) | | | (254,949 | ) | | | (331,721 | ) | | | | | | | | | | | (1,594,147 | ) | | | (2,002,851 | ) |
| Net increase (decrease) in shares outstanding | | (165,379 | ) | | | (36,811 | ) | | | 1,850 | | | | 6,639 | | | | | | | | | | | | 1,392,673 | | | | 1,252,305 | |
| Class R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares sold | | | | | | | | | | | | | | | | | | | | | | | | | | 35,464 | | | | 77,492 | |
| Issued to shareholders in reinvestment of distributions | | | | | | | | | | | | | | | | | | | | | | | | | | 12,279 | | | | 19,912 | |
| Shares redeemed | | | | | | | | | | | | | | | | | | | | | | | | | | (129,537 | ) | | | (61,441 | ) |
| Net increase (decrease) in shares outstanding | | | | | | | | | | | | | | | | | | | | | | | | | | (81,794 | ) | | | 35,963 | |
| |
| See accompanying Notes to Financial Statements. |
| 34 | |
| Madison Funds | April 30, 2017 |
| |
| Statements of Changes in Net Assets |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Dividend Income Fund | | Large Cap Value Fund | | Investors Fund | | Mid Cap Fund |
| | | Six-Months
Ended
April 30, 2017
(unaudited) | | | Year
Ended
October 31,
2016 | | | Six-Months
Ended
April 30, 2017
(unaudited) | | | Year
Ended
October 31,
2016 | | | Six-Months
Ended
April 30, 2017
(unaudited) | | | Year
Ended
October 31,
2016 | | | Six-Months
Ended
April 30, 2017
(unaudited) | | | Year
Ended
October 31,
2016 | |
| Net Assets at beginning of period | | $ | 102,401,892 | | | $ | 20,924,558 | | | $ | 103,063,978 | | | $ | 177,208,386 | | | $ | 278,638,527 | | | $ | 118,284,204 | | | $ | 306,413,976 | | | $ | 265,880,184 | |
| Increase (decrease) in net assets from operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss) | | | 1,053,291 | | | | 1,083,945 | | | | 426,514 | | | | 1,564,854 | | | | 600,704 | | | | 571,085 | | | | (397,811 | ) | | | (588,643 | ) |
| Net realized gain | | | 1,943,980 | | | | 2,369,983 | | | | 4,963,272 | | | | 13,539,337 | | | | 9,343,404 | | | | 8,295,419 | | | | 4,984,707 | | | | 14,740,332 | |
Net change in unrealized appreciation (depreciation) | | | 8,369,113 | | | | 1,225,487 | | | | 3,955,478 | | | | (6,493,824 | ) | | | 22,758,084 | | | | 22,660,122 | 1 | | | 30,408,287 | | | | (3,041,950 | ) |
Net increase in net assets from operations | | | 11,366,384 | | | | 4,679,415 | | | | 9,345,264 | | | | 8,610,367 | | | | 32,702,192 | | | | 31,526,626 | | | | 34,995,183 | | | | 11,109,739 | |
| Distributions to shareholders from: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | – | | | | – | | | | (733,413 | ) | | | (385,702 | ) | | | (2,015 | ) | | | (12,985 | ) | | | (2,531 | ) | | | – | |
| Class B | | | – | | | | – | | | | (13,655 | ) | | | (4,614 | ) | | | – | | | | – | | | | – | | | | – | |
| Class Y | | | (985,277 | ) | | | (1,027,860 | ) | | | (514,776 | ) | | | (924,359 | ) | | | (472,406 | ) | | | (866,821 | ) | | | – | | | | – | |
| Class R6 | | | – | | | | – | | | | – | | | | – | | | | (25,360 | ) | | | (66,629 | ) | | | – | | | | – | |
| Net realized gains | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A | | | – | | | | – | | | | (8,381,367 | ) | | | (7,048,086 | ) | | | (2,071,812 | ) | | | (290,582 | ) | | | (2,386,234 | ) | | | (3,119,742 | ) |
| Class B | | | – | | | | – | | | | (501,914 | ) | | | (458,770 | ) | | | – | | | | – | | | | (154,728 | ) | | | (229,780 | ) |
| Class Y | | | (2,424,186 | ) | | | (838,307 | ) | | | (4,807,334 | ) | | | (11,989,841 | ) | | | (6,262,644 | ) | | | (13,633,242 | ) | | | (10,575,693 | ) | | | (11,027,407 | ) |
| Class R6 | | | – | | | | – | | | | – | | | | – | | | | (185,942 | ) | | | (863,240 | ) | | | (460,898 | ) | | | (549,126 | ) |
| Total distributions | | | (3,409,463 | ) | | | (1,866,167 | ) | | | (14,952,459 | ) | | | (20,811,372 | ) | | | (9,020,179 | ) | | | (15,733,499 | ) | | | (13,580,084 | ) | | | (14,926,055 | ) |
| Capital Stock transactions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares sold | | | | | | | | | | | 2,598,964 | | | | 3,290,087 | | | | 2,073,779 | | | | 2,526,425 | | | | 3,247,514 | | | | 3,607,742 | |
| Issued in merger | | | | | | | | | | | – | | | | – | | | | – | | | | 60,299,634 | | | | – | | | | – | |
Issued to shareholders in reinvestment of distributions | | | | | | | | | | | 9,072,418 | | | | 7,418,601 | | | | 2,069,040 | | | | 303,567 | | | | 2,384,050 | | | | 3,116,694 | |
| Shares redeemed | | | | | | | | | | | (4,345,745 | ) | | | (8,388,132 | ) | | | (4,075,597 | ) | | | (5,685,925 | ) | | | (3,761,628 | ) | | | (6,750,425 | ) |
Net increase (decrease) from capital stock transactions | | | | | | | | | | | 7,325,637 | | | | 2,320,556 | | | | 67,222 | | | | 57,443,701 | | | | 1,869,936 | | | | (25,989 | ) |
| Class B Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares sold | | | | | | | | | | | 237,495 | | | | 352,221 | | | | | | | | | | | | 153,307 | | | | 265,455 | |
Issued to shareholders in reinvestment of distributions | | | | | | | | | | | 515,569 | | | | 463,383 | | | | | | | | | | | | 154,728 | | | | 229,779 | |
| Shares redeemed | | | | | | | | | | | (545,539 | ) | | | (1,098,195 | ) | | | | | | | | | | | (529,972 | ) | | | (898,341 | ) |
Net increase (decrease) from capital stock transactions | | | | | | | | | | | 207,525 | | | | (282,591 | ) | | | | | | | | | | | (221,937 | ) | | | (403,107 | ) |
| Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares sold | | | 3,746,309 | | | | 81,433,767 | | | | 721,790 | | | | 9,682,939 | | | | 14,191,453 | | | | 50,116,980 | | | | 30,660,475 | | | | 79,449,133 | |
| Issued in merger | | | – | | | | – | | | | – | | | | – | | | | – | | | | 56,267,155 | | | | – | | | | – | |
Issued to shareholders in reinvestment of distributions | | | 3,376,614 | | | | 1,819,290 | | | | 5,312,641 | | | | 12,900,310 | | | | 6,666,022 | | | | 14,292,493 | | | | 9,085,089 | | | | 9,641,548 | |
| Shares redeemed | | | (14,122,578 | ) | | | (4,588,971 | ) | | | (15,429,796 | ) | | | (86,564,617 | ) | | | (31,982,854 | ) | | | (33,640,135 | ) | | | (33,298,545 | ) | | | (43,419,292 | ) |
Net increase (decrease) from capital stock transactions | | | (6,999,655 | ) | | | 78,664,086 | | | | (9,395,365 | ) | | | (63,981,368 | ) | | | (11,125,379 | ) | | | 87,036,493 | | | | 6,447,019 | | | | 45,671,389 | |
| Class R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares sold | | | | | | | | | | | | | | | | | | | 161,026 | | | | 799,964 | | | | 2,249,117 | | | | 683,855 | |
Issued to shareholders in reinvestment of distributions | | | | | | | | | | | | | | | | | | | 211,302 | | | | 929,869 | | | | 460,898 | | | | 549,126 | |
| Shares redeemed | | | | | | | | | | | | | | | | | | | (401,233 | ) | | | (1,648,831 | ) | | | (1,229,996 | ) | | | (2,125,166 | ) |
Net increase (decrease) from capital stock transactions | | | | | | | | | | | | | | | | | | | (28,905 | ) | | | 81,002 | | | | 1,480,019 | | | | (892,185 | ) |
Total net increase (decrease) from capital stock transactions | | | (6,999,655 | ) | | | 78,664,086 | | | | (1,862,203 | ) | | | (61,943,403 | ) | | | (11,087,062 | ) | | | 144,561,196 | | | | 9,575,037 | | | | 44,350,108 | |
| Total increase (decrease) in net assets | | | 957,266 | | | | 81,477,334 | | | | (7,469,398 | ) | | | (74,144,408 | ) | | | 12,594,951 | | | | 160,354,323 | | | | 30,990,136 | | | | 40,533,792 | |
| Net Assets at end of period | | $ | 103,359,158 | | | $ | 102,401,892 | | | $ | 95,594,580 | | | $ | 103,063,978 | | | $ | 291,233,478 | | | $ | 278,638,527 | | | $ | 337,404,112 | | | $ | 306,413,976 | |
Undistributed net investment income (loss) included in net assets | | $ | 127,149 | | | $ | 59,135 | | | $ | 275,083 | | | $ | 1,110,413 | | | $ | 509,291 | | | $ | 408,368 | | | $ | (947,057 | ) | | $ | (546,715 | ) |
| Capital Share transactions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares sold | | | | | | | | | | | 172,445 | | | | 218,277 | | | | 100,765 | | | | 131,336 | | | | 369,019 | | | | 442,695 | |
| Issued in merger | | | | | | | | | | | – | | | | – | | | | – | | | | 3,491,053 | | | | – | | | | – | |
Issued to shareholders in reinvestment of distributions | | | | | | | | | | | 640,704 | | | | 503,981 | | | | 104,609 | | | | 16,561 | | | | 279,172 | | | | 386,207 | |
| Shares redeemed | | | | | | | | | | | (293,009 | ) | | | (556,810 | ) | | | (198,391 | ) | | | (293,049 | ) | | | (429,430 | ) | | | (822,763 | ) |
| Net increase in shares outstanding | | | | | | | | | | | 520,140 | | | | 165,448 | | | | 6,983 | | | | 3,345,901 | | | | 218,761 | | | | 6,139 | |
| Class B Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares sold | | | | | | | | | | | 15,076 | | | | 24,057 | | | | | | | | | | | | 20,802 | | | | 37,317 | |
Issued to shareholders in reinvestment of distributions. | | | | | | | | | | | 37,198 | | | | 32,068 | | | | | | | | | | | | 21,701 | | | | 33,544 | |
| Shares redeemed | | | | | | | | | | | (37,823 | ) | | | (74,341 | ) | | | | | | | | | | | (72,757 | ) | | | (129,518 | ) |
Net increase (decrease) in shares outstanding | | | | | | | | | | | 14,451 | | | | (18,216 | ) | | | | | | | | | | | (30,254 | ) | | | (58,657 | ) |
| Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares sold | | | 159,010 | | | | 3,758,374 | | | | 45,515 | | | | 662,380 | | | | 693,267 | | | | 2,600,056 | | | | 3,360,138 | | | | 9,575,828 | |
| Issued in merger | | | – | | | | – | | | | – | | | | – | | | | – | | | | 3,678,946 | | | | – | | | | – | |
Issued to shareholders in reinvestment of distributions | | | 143,896 | | | | 82,612 | | | | 375,717 | | | | 876,976 | | | | 336,668 | | | | 779,307 | | | | 1,025,405 | | | | 1,157,449 | |
| Shares redeemed | | | (601,495 | ) | | | (205,000 | ) | | | (1,056,294 | ) | | | (5,867,684 | ) | | | (1,560,717 | ) | | | (1,738,632 | ) | | | (3,659,166 | ) | | | (5,118,248 | ) |
Net increase (decrease) in shares outstanding | | | (298,589 | ) | | | 3,635,986 | | | | (635,062 | ) | | | (4,328,328 | ) | | | (530,782 | ) | | | 5,319,677 | | | | 726,377 | | | | 5,615,029 | |
| Class R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shares sold | | | | | | | | | | | | | | | | | | | 7,793 | | | | 43,005 | | | | 257,588 | | | | 80,726 | |
Issued to shareholders in reinvestment of distributions | | | | | | | | | | | | | | | | | | | 10,624 | | | | 50,482 | | | | 51,211 | | | | 65,062 | |
| Shares redeemed | | | | | | | | | | | | | | | | | | | (19,458 | ) | | | (86,385 | ) | | | (132,803 | ) | | | (246,165 | ) |
Net increase (decrease) in shares outstanding | | | | | | | | | | | | | | | | | | | (1,041 | ) | | | 7,102 | | | | 175,996 | | | | (100,377 | ) |
1Includes $11,448,706 of unrealized appreciation that was associated with the Madison Large Cap Growth Fund reorganization into the Madison Investors Fund after market close in February 26, 2016.
| See accompanying Notes to Financial Statements. |
| | 35 |
| Madison Funds | April 30, 2017 |
| |
| Statements of Changes in Net Assets |
| | | | | | | | | | | | | | | | |
| | Small Cap Fund | | | International Stock Fund | |
| | Six-Months
Ended
April 30, 2017
(unaudited) | | | Year
Ended
October 31,
2016 | | | Six-Months
Ended
April 30, 2017
(unaudited) | | | Year
Ended
October 31,
2016 | |
| Net Assets at beginning of period | $ | 95,008,369 | | | $ | 87,600,246 | | | $ | 35,258,713 | | | $ | 38,329,644 | |
| Increase (decrease) in net assets from operations: | | | | | | | | | | | | | | | |
| Net investment income | | 834,744 | | | | 448,463 | | | | 178,357 | | | | 399,573 | |
| Net realized gain (loss) | | 5,287,036 | | | | 3,787,484 | | | | (708,042 | ) | | | (2,145,772 | ) |
| Net change in unrealized appreciation (depreciation) | | 10,650,791 | | | | (2,674,212 | ) | | | 2,832,569 | | | | (910,500 | ) |
| Net increase (decrease) in net assets from operations | | 16,772,571 | | | | 1,561,735 | | | | 2,302,884 | | | | (2,656,699 | ) |
| Distributions to shareholders from: | | | | | | | | | | | | | | | |
| Net investment income | | | | | | | | | | | | | | | |
| Class A | | (5,014 | ) | | | (3,775 | ) | | | (216,849 | ) | | | (176,364 | ) |
| Class B | | – | | | | – | | | | (7,146 | ) | | | (3,888 | ) |
| Class Y | | (406,818 | ) | | | (237,790 | ) | | | (162,676 | ) | | | (171,460 | ) |
| Net realized gains | | | | | | | | | | | | | | | |
| Class A | | (108,733 | ) | | | (121,988 | ) | | | – | | | | – | |
| Class B | | (14,931 | ) | | | (15,891 | ) | | | – | | | | – | |
| Class Y | | (3,034,721 | ) | | | (2,938,689 | ) | | | – | | | | – | |
| Total distributions | | (3,570,217 | ) | | | (3,318,133 | ) | | | (386,671 | ) | | | (351,712 | ) |
| Capital Stock transactions: | | | | | | | | | | | | | | | |
| Class A Shares | | | | | | | | | | | | | | | |
| Shares sold | | 531,441 | | | | 606,668 | | | | 828,228 | | | | 1,668,297 | |
| Issued to shareholders in reinvestment of distributions | | 113,630 | | | | 125,763 | | | | 216,004 | | | | 175,730 | |
| Shares redeemed | | (354,773 | ) | | | (901,778 | ) | | | (1,515,034 | ) | | | (2,835,303 | ) |
| Net increase (decrease) from capital stock transactions | | 290,298 | | | | (169,347 | ) | | | (470,802 | ) | | | (991,276 | ) |
| Class B Shares | | | | | | | | | | | | | | | |
| Shares sold | | 35,496 | | | | 40,701 | | | | 20,201 | | | | 103,012 | |
| Issued to shareholders in reinvestment of distributions | | 14,931 | | | | 15,891 | | | | 7,146 | | | | 3,888 | |
| Shares redeemed | | (38,018 | ) | | | (85,433 | ) | | | (218,752 | ) | | | (390,564 | ) |
| Net increase (decrease) from capital stock transactions | | 12,409 | | | | (28,841 | ) | | | (191,405 | ) | | | (283,664 | ) |
| Class Y Shares | | | | | | | | | | | | | | | |
| Shares sold | | 4,759,635 | | | | 17,647,916 | | | | 2,126,076 | | | | 7,199,981 | |
| Issued to shareholders in reinvestment of distributions | | 3,326,506 | | | | 3,057,380 | | | | 162,676 | | | | 171,460 | |
| Shares redeemed | | (8,661,326 | ) | | | (11,342,587 | ) | | | (6,328,922 | ) | | | (6,159,021 | ) |
| Net increase (decrease) from capital stock transactions | | (575,185 | ) | | | 9,362,709 | | | | (4,040,170 | ) | | | 1,212,420 | |
| Total net increase (decrease) from capital stock transactions | | (272,478 | ) | | | 9,164,521 | | | | (4,702,377 | ) | | | (62,520 | ) |
| Total increase (decrease) in net assets | | 12,929,876 | | | | 7,408,123 | | | | (2,786,164 | ) | | | (3,070,931 | ) |
| Net Assets at end of period | $ | 107,938,245 | | | $ | 95,008,369 | | | $ | 32,472,549 | | | $ | 35,258,713 | |
| Undistributed net investment income included in net assets | $ | 726,346 | | | $ | 290,489 | | | $ | 178,356 | | | $ | 386,670 | |
| Capital Share transactions: | | | | | | | | | | | | | | | |
| Class A Shares | | | | | | | | | | | | | | | |
| Shares sold | | 32,016 | | | | 41,423 | | | | 67,971 | | | | 137,881 | |
| Issued to shareholders in reinvestment of distributions | | 6,764 | | | | 8,697 | | | | 18,398 | | | | 13,718 | |
| Shares redeemed | | (21,618 | ) | | | (62,006 | ) | | | (125,546 | ) | | | (230,240 | ) |
| Net increase (decrease) in shares outstanding | | 17,162 | | | | (11,886 | ) | | | (39,177 | ) | | | (78,641 | ) |
| Class B Shares | | | | | | | | | | | | | | | |
| Shares sold | | 2,205 | | | | 2,898 | | | | 1,732 | | | | 8,565 | |
| Issued to shareholders in reinvestment of distributions | | 944 | | | | 1,158 | | | | 621 | | | | 309 | |
| Shares redeemed | | (2,461 | ) | | | (6,194 | ) | | | (18,522 | ) | | | (32,528 | ) |
| Net increase (decrease) in shares outstanding | | 688 | | | | (2,138 | ) | | | (16,169 | ) | | | (23,654 | ) |
| Class Y Shares | | | | | | | | | | | | | | | |
| Shares sold | | 287,688 | | | | 1,241,455 | | | | 173,212 | | | | 573,993 | |
| Issued to shareholders from capital stock transactions | | 197,653 | | | | 211,145 | | | | 13,857 | | | | 13,385 | |
| Shares redeemed | | (516,769 | ) | | | (774,035 | ) | | | (529,772 | ) | | | (506,676 | ) |
| Net increase (decrease) in shares outstanding | | (31,428 | ) | | | 678,565 | | | | (342,703 | ) | | | 80,702 | |
| See accompanying Notes to Financial Statements. |
| 36 | |
| Madison Funds | April 30, 2017 |
| |
| Financial Highlights for a Share of Beneficial Interest Outstanding |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | CONSERVATIVE ALLOCATION FUND |
| | | CLASS A | | CLASS B |
| | Six Months
Ended 4/30/17
(unaudited) | | | Year Ended October 31, | | Six Months
Ended 4/30/17
(unaudited) | | Year Ended October 31, |
| | | | | |
| | | | | 2016 | | | 2015 | | | 2014 | | | 2013 | | | 2012 | | | | 2016 | | | 2015 | | | 2014 | | | 2013 | | | 2012 |
| Net Asset Value at beginning of period | | $ | 10.46 | | | $ | 10.63 | | | $ | 11.15 | | | $ | 10.68 | | | $ | 10.43 | | | $ | 9.94 | | | | $ 10.52 | | | $ | 10.69 | | | $ | 11.19 | | | $ | 10.71 | | | $ | 10.42 | | | $ | 9.94 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income1 | | | 0.07 | | | | 0.14 | | | | 0.13 | | | | 0.15 | | | | 0.22 | | | | 0.24 | | | | 0.03 | | | | 0.07 | | | | 0.06 | | | | 0.06 | | | | 0.15 | | | | 0.16 | |
| Net realized and unrealized gain (loss) on investments | | | 0.33 | | | | 0.17 | | | | – | | | | 0.50 | | | | 0.48 | | | | 0.50 | | | | 0.33 | | | | 0.16 | | | | (0.01 | ) | | | 0.51 | | | | 0.47 | | | | 0.50 | |
| Total from investment operations | | | 0.40 | | | | 0.31 | | | | 0.13 | | | | 0.65 | | | | 0.70 | | | | 0.74 | | | | 0.36 | | | | 0.23 | | | | 0.05 | | | | 0.57 | | | | 0.62 | | | | 0.66 | |
| Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.11 | ) | | | (0.16 | ) | | | (0.17 | ) | | | (0.14 | ) | | | (0.45 | ) | | | (0.25 | ) | | | (0.06 | ) | | | (0.08 | ) | | | (0.07 | ) | | | (0.05 | ) | | | (0.33 | ) | | | (0.18 | ) |
| Capital gains | | | (0.15 | ) | | | (0.32 | ) | | | (0.48 | ) | | | (0.04 | ) | | | – | | | | – | | | | (0.15 | ) | | | (0.32 | ) | | | (0.48 | ) | | | (0.04 | ) | | | – | | | | – | |
| Total distributions | | | (0.26 | ) | | | (0.48 | ) | | | (0.65 | ) | | | (0.18 | ) | | | (0.45 | ) | | | (0.25 | ) | | | (0.21 | ) | | | (0.40 | ) | | | (0.55 | ) | | | (0.09 | ) | | | (0.33 | ) | | | (0.18 | ) |
| Net increase (decrease) in net asset value | | | 0.14 | | | | (0.17 | ) | | | (0.52 | ) | | | 0.47 | | | | 0.25 | | | | 0.49 | | | | 0.15 | | | | (0.17 | ) | | | (0.50 | ) | | | 0.48 | | | | 0.29 | | | | 0.48 | |
| Net Asset Value at end of period | | $ | 10.60 | | | $ | 10.46 | | | $ | 10.63 | | | $ | 11.15 | | | $ | 10.68 | | | $ | 10.43 | | | | $ 10.67 | | | $ | 10.52 | | | $ | 10.69 | | | $ | 11.19 | | | $ | 10.71 | | | $ | 10.42 | |
| Total Return (%)2 | | | 3.94 | 3 | | | 3.10 | | | | 1.17 | | | | 6.13 | | | | 6.90 | | | | 7.60 | | | | 3.50 | 3 | | | 2.27 | | | | 0.44 | | | | 5.41 | | | | 6.05 | | | | 6.75 | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 43,992 | | | $ | 43,752 | | | $ | 46,039 | | | $ | 44,438 | | | $ | 42,353 | | | $ | 41,905 | | | | $ 8,692 | | | $ | 9,175 | | | $ | 10,064 | | | $ | 11,393 | | | $ | 11,569 | | | $ | 9,521 | |
| Ratios of expenses to average net assets (%) | | | 0.70 | 4 | | | 0.71 | | | | 0.70 | | | | 0.70 | | | | 0.70 | | | | 0.70 | | | | 1.45 | 4 | | | 1.46 | | | | 1.45 | | | | 1.45 | | | | 1.45 | | | | 1.45 | |
| Ratio of net investment income to average net assets (%) | | | 1.31 | 4 | | | 1.36 | | | | 1.23 | | | | 1.35 | | | | 2.09 | | | | 2.34 | | | | 0.60 | 4 | | | 0.60 | | | | 0.59 | | | | 0.59 | | | | 1.29 | | | | 1.61 | |
| Portfolio turnover (%)5 | | | 39 | 3 | | | 82 | | | | 83 | | | | 96 | | | | 69 | | | | 40 | | | | 39 | 3 | | | 82 | | | | 83 | | | | 96 | | | | 69 | | | | 40 | |
| |
| | CONSERVATIVE ALLOCATION FUND | | | | | | | | | | | | | | | | | | | | | | | | |
| | CLASS C | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Year Ended October 31, | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months
Ended 4/30/17
(unaudited) | | | 2016 | | 2015 | | 2014 | | 2013 | | 2012 | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value at beginning of period | | $ | 10.53 | | | $ | 10.69 | | | $ | 11.20 | | | $ | 10.72 | | | $ | 10.43 | | | $ | 9.95 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income1 | | | 0.03 | | | | 0.06 | | | | 0.05 | | | | 0.06 | | | | 0.16 | | | | 0.16 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net realized and unrealized gain (loss) on investments | | | 0.33 | | | | 0.18 | | | | (0.01 | ) | | | 0.51 | | | | 0.46 | | | | 0.50 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total from investment operations | | | 0.36 | | | | 0.24 | | | | 0.04 | | | | 0.57 | | | | 0.62 | | | | 0.66 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.06 | ) | | | (0.08 | ) | | | (0.07 | ) | | | (0.05 | ) | | | (0.33 | ) | | | (0.18 | ) | | | | | | | | | | | | | | | | | | | | | | | | |
| Capital gains | | | (0.15 | ) | | | (0.32 | ) | | | (0.48 | ) | | | (0.04 | ) | | | – | | | | – | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total distributions | | | (0.21 | ) | | | (0.40 | ) | | | (0.55 | ) | | | (0.09 | ) | | | (0.33 | ) | | | (0.18 | ) | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net asset value | | | 0.15 | | | | (0.16 | ) | | | (0.51 | ) | | | 0.48 | | | | 0.29 | | | | 0.48 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value at end of period | | $ | 10.68 | | | $ | 10.53 | | | $ | 10.69 | | | $ | 11.20 | | | $ | 10.72 | | | $ | 10.43 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Return (%)2 | | | 3.50 | 3 | | | 2.37 | | | | 0.34 | | | | 5.41 | | | | 6.05 | | | | 6.75 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 20,061 | | | $ | 20,225 | | | $ | 19,694 | | | $ | 18,948 | | | $ | 16,787 | | | $ | 10,813 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ratios of expenses to average net assets (%) | | | 1.45 | 4 | | | 1.46 | | | | 1.45 | | | | 1.45 | | | | 1.45 | | | | 1.45 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ratio of net investment income to average net assets (%) | | | 0.56 | 4 | | | 0.54 | | | | 0.49 | | | | 0.57 | | | | 1.22 | | | | 1.49 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Portfolio turnover (%)5 | | | 39 | 3 | | | 82 | | | | 83 | | | | 96 | | | | 69 | | | | 40 | | | | | | | | | | | | | | | | | | | | | | | | | |
| 1 | Net investment income (loss) calculated excluding permanent tax adjustments to undistributed net investment income. |
| 2 | Total return without applicable sales charge. |
| 3 | Not annualized. |
| 4 | Annualized. |
| 5 | Portfolio turnover is calculated at the fund level and represents the entire fiscal year or period. |
| See accompanying Notes to Financial Statements. |
| | 37 |
| Madison Funds | April 30, 2017 |
| |
| Financial Highlights for a Share of Beneficial Interest Outstanding |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | MODERATE ALLOCATION FUND |
| | | CLASS A | | CLASS B |
| | Six Months
Ended 4/30/17
(unaudited) | | | Year Ended October 31, | | Six Months
Ended 4/30/17
(unaudited) | | Year Ended October 31, |
| | | | 2016 | | 2015 | | | 2014 | | | | 2013 | | | 2012 | | | 2016 | | | 2015 | | | 2014 | | | 2013 | | | 2012 |
| Net Asset Value at beginning of period | | $ | 11.18 | | | $ | 11.62 | | | $ | 12.27 | | | $ | 11.50 | | | | | $ | 10.35 | | $ | 9.76 | | | $ | 11.05 | | | $ | 11.52 | | | $ | 12.19 | | | $ | 11.43 | | | $ | 10.29 | | | $ | 9.70 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income1 | | | 0.06 | | | | 0.13 | | | | 0.13 | | | | 0.12 | | | | | | 0.17 | | | 0.19 | | | | 0.03 | | | | 0.06 | | | | 0.05 | | | | 0.04 | | | | 0.09 | | | | 0.11 | |
| Net realized and unrealized gain on investments | | | 0.71 | | | | 0.18 | | | | 0.04 | | | | 0.80 | | | | | | 1.23 | | | 0.63 | | | | 0.70 | | | | 0.16 | | | | 0.04 | | | | 0.78 | | | | 1.23 | | | | 0.63 | |
| Total from investment operations | | | 0.77 | | | | 0.31 | | | | 0.17 | | | | 0.92 | | | | | | 1.40 | | | 0.82 | | | | 0.73 | | | | 0.22 | | | | 0.09 | | | | 0.82 | | | | 1.32 | | | | 0.74 | |
| Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.15 | ) | | | (0.12 | ) | | | (0.17 | ) | | | (0.15 | ) | | | | | | (0.25 | ) | | (0.23 | ) | | | (0.07 | ) | | | (0.06 | ) | | | (0.11 | ) | | | (0.06 | ) | | | (0.18 | ) | | | (0.15 | ) |
| Capital gains | | | (0.32 | ) | | | (0.63 | ) | | | (0.65 | ) | | | – | | | | | | | | | – | | | – | | | | (0.32 | ) | | | (0.63 | ) | | | (0.65 | ) | | | – | | | | – | | | | – | |
| Total distributions | | | (0.47 | ) | | | (0.75 | ) | | | (0.82 | ) | | | (0.15 | ) | | | | | | (0.25 | ) | | (0.23 | ) | | | (0.39 | ) | | | (0.69 | ) | | | (0.76 | ) | | | (0.06 | ) | | | (0.18 | ) | | | (0.15 | ) |
| Net increase (decrease) in net asset value | | | 0.30 | | | | (0.44 | ) | | | (0.65 | ) | | | 0.77 | | | | | | 1.15 | | | 0.59 | | | | 0.34 | | | | (0.47 | ) | | | (0.67 | ) | | | 0.76 | | | | 1.14 | | | | 0.59 | |
| Net Asset Value at end of period | | $ | 11.48 | | | $ | 11.18 | | | $ | 11.62 | | | $ | 12.27 | | | | | $ | 11.50 | | $ | 10.35 | | | $ | 11.39 | | | $ | 11.05 | | | $ | 11.52 | | | $ | 12.19 | | | $ | 11.43 | | | $ | 10.29 | |
| Total Return (%)2 | | | 7.16 | 3 | | | 2.95 | | | | 1.44 | | | | 8.03 | | | | | | 13.87 | | | 8.55 | | | | 6.79 | 3 | | | 2.15 | | | | 0.72 | | | | 7.18 | | | | 12.98 | | | | 7.77 | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 110,419 | | | $ | 104,276 | | | $ | 107,043 | | | $ | 109,148 | | | | | | $ | 104,849 | | $ | 92,954 | | | $ | 24,324 | | | $ | 25,440 | | | $ | 29,451 | | | $ | 33,235 | | | $ | 33,070 | | | $ | 29,821 | |
| Ratios of expenses to average net assets (%) | | | 0.70 | 4 | | | 0.71 | | | | 0.70 | | | | 0.70 | | | | | | 0.70 | | | 0.70 | | | | 1.45 | 4 | | | 1.46 | | | | 1.45 | | | | 1.45 | | | | 1.45 | | | | 1.45 | |
| Ratio of net investment income to average net assets (%) | | | 1.12 | 4 | | | 1.13 | | | | 1.02 | | | | 1.00 | | | | | | 1.55 | | | 1.86 | | | | 0.43 | 4 | | | 0.58 | | | | 0.41 | | | | 0.27 | | | | 0.82 | | | | 1.11 | |
| Portfolio turnover (%)5 | | | 37 | 3 | | | 97 | | | | 81 | | | | 89 | | | | | | 69 | | | 50 | | | | 37 | 3 | | | 97 | | | | 81 | | | | 89 | | | | 69 | | | | 50 | |
| |
| | MODERATE ALLOCATION FUND | | | | | | | | | | | | | | | | | | | | | | | | |
| | CLASS C | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months
Ended 4/30/17
(unaudited) | | | Year Ended October 31, | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 2016 | | 2015 | | 2014 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | 2013 | | | | | 2012 | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value at beginning of period | | $ | 11.06 | | | $ | 11.53 | | | $ | 12.20 | | | $ | 11.44 | | | $ | | | 10.30 | | | | | $ | 9.71 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income1 | | | 0.02 | | | | 0.05 | | | | 0.02 | | | | 0.03 | | | | | | 0.10 | | | | | | 0.10 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net realized and unrealized gain on investments | | | 0.71 | | | | 0.17 | | | | 0.07 | | | | 0.79 | | | | | | 1.22 | | | | | | 0.64 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total from investment operations | | | 0.73 | | | | 0.22 | | | | 0.09 | | | | 0.82 | | | | | | 1.32 | | | | | | 0.74 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.07 | ) | | | (0.06 | ) | | | (0.11 | ) | | | (0.06 | ) | | (0.18 | ) | | | | | (0.15 | ) | | | | | | | | | | | | | | | | | | | | | | | | |
| Capital gains | | | (0.32 | ) | | | (0.63 | ) | | | (0.65 | ) | | | – | | | | | | – | | | | | | – | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total distributions | | | (0.39 | ) | | | (0.69 | ) | | | (0.76 | ) | | | (0.06 | ) | | (0.18 | ) | | | | | (0.15 | ) | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net asset value | | | 0.34 | | | | (0.47 | ) | | | (0.67 | ) | | | 0.76 | | | | | | 1.14 | | | | | | 0.59 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value at end of period | | $ | 11.40 | | | $ | 11.06 | | | $ | 11.53 | | | $ | 12.20 | | | $ | | | 11.44 | | | | | $ | 10.30 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Return (%)2 | | | 6.78 | 3 | | | 2.15 | | | | 0.72 | | | | 7.17 | | | 12.97 | | | | | | 7.77 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 9,152 | | | $ | 9,100 | | | $ | 9,506 | | | $ | 8,238 | | | $ | | | 7,347 | | | | | $ | 5,253 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ratios of expenses to average net assets (%) | | | 1.45 | 4 | | | 1.46 | | | | 1.45 | | | | 1.45 | | | | | | 1.45 | | | | | | 1.45 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ratio of net investment income to average net assets (%) | | | 0.44 | 4 | | | 0.47 | | | | 0.01 | | | | 0.21 | | | | | | 0.82 | | | | | | 1.02 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Portfolio turnover (%)5 | | | 37 | 3 | | | 97 | | | | 81 | | | | 89 | | | | | | 69 | | | | | | 50 | | | | | | | | | | | | | | | | | | | | | | | | | |
| 1 Net investment income (loss) calculated excluding permanent tax adjustments to undistributed net investment income. |
| 2 Total return without applicable sales charge. |
| 3 Not annualized. |
| 4 Annualized. |
| 5 Portfolio turnover is calculated at the fund level and represents the entire fiscal year or period. |
| See accompanying Notes to Financial Statements. |
| 38 | |
| Madison Funds | April 30, 2017 |
| |
| Financial Highlights for a Share of Beneficial Interest Outstanding |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | AGGRESSIVE ALLOCATION FUND |
| | | CLASS A | | CLASS B |
| | Six Months
Ended 4/30/17
(unaudited) | Year Ended October 31, | | Six Months
Ended 4/30/17
(unaudited) | | Year Ended October 31, |
| | | 2016 | | 2015 | | 2014 | | 2013 | | 2012 | | | 2016 | | 2015 | | 2014 | | 2013 | | 2012 |
| | | | | | | | | | | | | |
| Net Asset Value at beginning of period | | $ | 11.12 | | | $ | 11.87 | | | $ | 12.81 | | | $ | 11.72 | | | $ | 10.01 | | | $ | 9.32 | | | $ | 10.83 | | | $ | 11.65 | | | $ | 12.61 | | | $ | 11.59 | | | $ | 9.89 | | | $ | 9.23 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income1 | | | 0.06 | | | | 0.12 | | | | 0.11 | | | | 0.09 | | | | 0.12 | | | | 0.12 | | | | – | | | | 0.06 | | | | 0.03 | | | | 0.00 | 5 | | | 0.04 | | | | 0.05 | |
| Net realized and unrealized gain on investments | | | 1.01 | | | | 0.15 | | | | 0.10 | | | | 1.04 | | | | 1.80 | | | | 0.70 | | | | 1.00 | | | | 0.12 | | | | 0.09 | | | | 1.02 | | | | 1.80 | | | | 0.68 | |
| Total from investment operations | | | 1.07 | | | | 0.27 | | | | 0.21 | | | | 1.13 | | | | 1.92 | | | | 0.82 | | | | 1.00 | | | | 0.18 | | | | 0.12 | | | | 1.02 | | | | 1.84 | | | | 0.73 | |
| Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.13 | ) | | | (0.10 | ) | | | (0.20 | ) | | | (0.04 | ) | | | (0.21 | ) | | | (0.13 | ) | | | (0.06 | ) | | | (0.08 | ) | | | (0.13 | ) | | | – | | | | (0.14 | ) | | | (0.07 | ) |
| Capital gains | | | (0.29 | ) | | | (0.92 | ) | | | (0.95 | ) | | | – | | | | – | | | | – | | | | (0.29 | ) | | | (0.92 | ) | | | (0.95 | ) | | | – | | | | – | | | | – | |
| Total distributions | | | (0.42 | ) | | | (1.02 | ) | | | (1.15 | ) | | | (0.04 | ) | | | (0.21 | ) | | | (0.13 | ) | | | (0.35 | ) | | | (1.00 | ) | | | (1.08 | ) | | | – | | | | (0.14 | ) | | | (0.07 | ) |
| Net increase (decrease) in net asset value | | | 0.65 | | | | (0.75 | ) | | | (0.94 | ) | | | 1.09 | | | | 1.71 | | | | 0.69 | | | | 0.65 | | | | (0.82 | ) | | | (0.96 | ) | | | 1.02 | | | | 1.70 | | | | 0.66 | |
| Net Asset Value at end of period | | $ | 11.77 | | | $ | 11.12 | | | $ | 11.87 | | | $ | 12.81 | | | $ | 11.72 | | | $ | 10.01 | | | $ | 11.48 | | | $ | 10.83 | | | $ | 11.65 | | | $ | 12.61 | | | $ | 11.59 | | | $ | 9.89 | |
| Total Return (%)2 | | | 9.89 | 3 | | | 2.65 | | | | 1.66 | | | | 9.67 | | | | 19.56 | | | | 8.87 | | | | 9.53 | 3 | | | 1.88 | | | | 0.91 | | | | 8.80 | | | | 18.79 | | | | 7.99 | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 49,786 | | | $ | 45,317 | | | $ | 46,834 | | | $ | 45,697 | | | $ | 41,526 | | | $ | 33,282 | | | $ | 10,475 | | | $ | 11,089 | | | $ | 12,383 | | | $ | 13,063 | | | $ | 12,365 | | | $ | 10,787 | |
| Ratios of expenses to average net assets (%) | | | 0.70 | 4 | | | 0.71 | | | | 0.70 | | | | 0.70 | | | | 0.70 | | | | 0.70 | | | | 1.45 | 4 | | | 1.46 | | | | 1.45 | | | | 1.45 | | | | 1.45 | | | | 1.45 | |
| Ratio of net investment income (loss) to average net assets (%) | | | 0.95 | 4 | | | 1.04 | | | | 0.81 | | | | 0.73 | | | | 1.02 | | | | 1.22 | | | | 0.25 | 4 | | | 0.56 | | | | 0.21 | | | | (0.01 | ) | | | 0.34 | | | | 0.48 | |
| Portfolio turnover (%)6 | | | 29 | 3 | | | 98 | | | | 72 | | | | 78 | | | | 67 | | | | 67 | | | | 293 | | | | 98 | | | | 72 | | | | 78 | | | | 67 | | | | 67 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| |
AGGRESSIVE ALLOCATION FUND | | | | | | | | | | | | | | | | | | | | | | | | |
| | CLASS C | | | | | | | | | | | | | | | | | | | | | | | | |
| | Six Months
Ended 4/30/17
(unaudited) | | Year Ended October 31, | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | 2016 | | 2015 | | 2014 | | 2013 | | 2012 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value at beginning of period | | $ | 10.84 | | | $ | 11.66 | | | $ | 12.62 | | | $ | 11.60 | | | $ | 9.90 | | | $ | 9.24 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income1 | | | – | | | | 0.05 | | | | 0.02 | | | | (0.01 | ) | | | 0.05 | | | | 0.03 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net realized and unrealized gain on investments | | | 1.00 | | | | 0.13 | | | | 0.10 | | | | 1.03 | | | | 1.79 | | | | 0.70 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total from investment operations | | | 1.00 | | | | 0.18 | | | | 0.12 | | | | 1.02 | | | | 1.84 | | | | 0.73 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.06 | ) | | | (0.08 | ) | | | (0.13 | ) | | | – | | | | (0.14 | ) | | | (0.07 | ) | | | | | | | | | | | | | | | | | | | | | | | | |
| Capital gains | | | (0.29 | ) | | | (0.92 | ) | | | (0.95 | ) | | | – | | | | – | | | | – | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total distributions | | | (0.35 | ) | | | (1.00 | ) | | | (1.08 | ) | | | – | | | | (0.14 | ) | | | (0.07 | ) | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net asset value | | | 0.65 | | | | (0.82 | ) | | | (0.96 | ) | | | 1.02 | | | | 1.70 | | | | 0.66 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value at end of period | | $ | 11.49 | | | $ | 10.84 | | | $ | 11.66 | | | $ | 12.62 | | | $ | 11.60 | | | $ | 9.90 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Return (%)2 | | | 9.52 | 3 | | | 1.87 | | | | 0.91 | | | | 8.79 | | | | 18.78 | | | | 7.98 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 2,233 | | | $ | 2,411 | | | $ | 2,600 | | | $ | 2,547 | | | $ | 2,116 | | | $ | 1,099 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ratios of expenses to average net assets (%) | | | 1.46 | 4 | | | 1.46 | | | | 1.45 | | | | 1.45 | | | | 1.45 | | | | 1.45 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ratio of net investment income (loss) to average net assets (%) | | | 0.46 | 4 | | | 0.42 | | | | 0.05 | | | | (0.09 | ) | | | 0.10 | | | | 0.32 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Portfolio turnover (%)6 | | | 29 | 3 | | | 98 | | | | 72 | | | | 78 | | | | 67 | | | | 67 | | | | | | | | | | | | | | | | | | | | | | | | | |
| 1 | Net investment income (loss) calculated excluding permanent tax adjustments to undistributed net investment income. |
| 2 | Total return without applicable sales charge. |
| 3 | Not annualized. |
| 4 | Annualized. |
| 5 | Amounts represent less than $0.005 per share. |
| 6 | Portfolio turnover is calculated at the fund level and represents the entire fiscal year or period. |
| See accompanying Notes to Financial Statements. |
| | 39 |
| Madison Funds | April 30, 2017 |
| |
| Financial Highlights for a Share of Beneficial Interest Outstanding |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | GOVERNMENT MONEY MARKET FUND* |
| | CLASS A | | CLASS B |
| | Six Months
Ended 4/30/17
(unaudited) | | Year Ended October 31, | | Six Months
Ended 4/30/17
(unaudited) | | Year Ended October 31, |
| | | 2016 | | 2015 | | 2014 | | 2013 | | 2012 | | | 2016 | | 2015 | | 2014 | | 2013 | | 2012 |
| | | | | | | | | | | | |
| Net Asset Value at beginning of period | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income1 | | | 0.00 | 2 | | | 0.00 | 2 | | | 0.00 | 2 | | | 0.00 | 2 | | | 0.00 | 2 | | | 0.00 | 2 | | | 0.00 | 2 | | | 0.00 | 2 | | | 0.00 | 2 | | | 0.00 | 2 | | | 0.00 | 2 | | | 0.00 | 2 |
| Total from investment operations | | | 0.00 | 2 | | | 0.00 | 2 | | | 0.00 | 2 | | | 0.00 | 2 | | | 0.00 | 2 | | | 0.00 | 2 | | | 0.00 | 2 | | | 0.00 | 2 | | | 0.00 | 2 | | | 0.00 | 2 | | | 0.00 | 2 | | | 0.00 | 2 |
| Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | 0.00 | 2 | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Total distributions | | | 0.00 | 2 | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Net increase in net asset value | | | 0.00 | 2 | | | 0.00 | 2 | | | 0.00 | 2 | | | 0.00 | 2 | | | 0.00 | 2 | | | 0.00 | 2 | | | 0.00 | 2 | | | 0.00 | 2 | | | 0.00 | 2 | | | 0.00 | 2 | | | 0.00 | 2 | | | 0.00 | 2 |
| Net Asset Value at end of period | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | |
| Total Return (%)3 | | | 0.01 | 4 | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 0.00 | 4 | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 0.00 | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 15,889 | | | $ | 18,295 | | | $ | 19,076 | | | $ | 20,570 | | | $ | 24,552 | | | $ | 11,654 | | | $ | 221 | | | $ | 599 | | | $ | 234 | | | $ | 461 | | | $ | 524 | | | $ | 826 | |
| Ratios of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Before reimbursement of expenses by Adviser (%) | | | 0.55 | 5 | | | 0.56 | | | | 0.55 | | | | 0.55 | | | | 0.55 | | | | 0.55 | | | | 1.25 | 2 | | | 1.30 | | | | 1.30 | | | | 1.30 | | | | 1.30 | | | | 1.30 | |
| After reimbursement of expenses by Adviser (%)6 | | | 0.48 | 5 | | | 0.28 | | | | 0.07 | | | | 0.07 | | | | 0.09 | | | | 0.08 | 5 | | | 0.42 | 5 | | | 0.28 | | | | 0.08 | | | | 0.07 | | | | 0.10 | | | | 0.07 | |
| Ratio of net investment income (loss) to average net assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| After reimbursement and waiver of expenses by Adviser (%)6 | | | 0.02 | 5 | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | (0.00 | ) | | | 0.00 | 5 | | | 0.00 | 5 | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 0.00 | |
| * | Prior to close of business on February 29, 2016, the Fund was known as the Cash Reserves Fund. See Note 1. |
| 1 | Net investment income (loss) calculated excluding permanent tax adjustments to undistributed net investment income. |
| 2 | Amounts represent less than $0.005 per share. |
| 3 | Total return without applicable sales charge. |
| 4 | Not annualized. |
| 5 | Annualized. |
| 6 | Ratio is net of fees waived by the adviser and distributor (See Note 3). |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | TAX-FREE VIRGINIA FUND* | | TAX-FREE NATIONAL FUND* |
| | | CLASS Y | | CLASS Y |
| | Six Months
Ended 4/30/17
(unaudited) | | Year Ended
October 31, | | Year Ended
September 30, | | Six Months
Ended 4/30/17
(unaudited) | | Year Ended
October 31, | | Year Ended
September 30, |
| | | | | | |
| | | | | | |
| | | | | | | |
| | | | 2016 | | 2015 | | 2014 | | 20131 | | 2013 | | 2012 | | | 2016 | | 2015 | | 2014 | | 20131 | | 2013 | | 2012 |
| Net Asset Value at beginning of period | | $ | 11.67 | | | $ | 11.61 | | | $ | 11.70 | | | $ | 11.54 | | | $ | 11.50 | | | $ | 12.24 | | | $ | 11.92 | | | $ | 11.10 | | | $ | 11.01 | | | $ | 11.08 | | | $ | 10.73 | | | $ | 10.70 | | | $ | 11.44 | | | $ | 11.05 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income2 | | | 0.12 | | | | 0.25 | | | | 0.28 | | | | 0.30 | | | | 0.03 | | | | 0.32 | | | | 0.35 | | | | 0.13 | | | | 0.26 | | | | 0.27 | | | | 0.29 | | | | 0.03 | | | | 0.32 | | | | 0.33 | |
| Net realized and unrealized gain (loss) on investments | | | (0.19 | ) | | | 0.10 | | | | (0.01 | ) | | | 0.35 | | | | 0.04 | | | | (0.65 | ) | | | 0.33 | | | | (0.20 | ) | | | 0.15 | | | | 0.01 | | | | 0.40 | | | | 0.03 | | | | (0.66 | ) | | | 0.43 | |
| Total from investment operations | | | (0.07 | ) | | | 0.35 | | | | 0.27 | | | | 0.65 | | | | 0.07 | | | | (0.33 | ) | | | 0.68 | | | | (0.07 | ) | | | 0.41 | | | | 0.28 | | | | 0.69 | | | | 0.06 | | | | (0.34 | ) | | | 0.76 | |
| Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.12 | ) | | | (0.25 | ) | | | (0.28 | ) | | | (0.30 | ) | | | (0.03 | ) | | | (0.32 | ) | | | (0.35 | ) | | | (0.13 | ) | | | (0.26 | ) | | | (0.27 | ) | | | (0.29 | ) | | | (0.03 | ) | | | (0.32 | ) | | | (0.33 | ) |
| Capital gains | | | (0.02 | ) | | | (0.04 | ) | | | (0.08 | ) | | | (0.19 | ) | | | – | | | | (0.09 | ) | | | (0.01 | ) | | | (0.07 | ) | | | (0.06 | ) | | | (0.08 | ) | | | (0.05 | ) | | | – | | | | (0.08 | ) | | | (0.04 | ) |
| Total distributions | | | (0.14 | ) | | | (0.29 | ) | | | (0.36 | ) | | | (0.49 | ) | | | (0.03 | ) | | | (0.41 | ) | | | (0.36 | ) | | | (0.20 | ) | | | (0.32 | ) | | | (0.35 | ) | | | (0.34 | ) | | | (0.03 | ) | | | (0.40 | ) | | | (0.37 | ) |
| Net increase (decrease) in net asset value | | | (0.21 | ) | | | 0.06 | | | | (0.09 | ) | | | 0.16 | | | | 0.04 | | | | (0.74 | ) | | | 0.32 | | | | (0.27 | ) | | | 0.09 | | | | (0.07 | ) | | | 0.35 | | | | 0.03 | | | | (0.74 | ) | | | 0.39 | |
| Net Asset Value at end of period | | $ | 11.46 | | | $ | 11.67 | | | $ | 11.61 | | | $ | 11.70 | | | $ | 11.54 | | | $ | 11.50 | | | $ | 12.24 | | | $ | 10.83 | | | $ | 11.10 | | | $ | 11.01 | | | $ | 11.08 | | | $ | 10.73 | | | $ | 10.70 | | | $ | 11.44 | |
| Total Return (%)3 | | | (0.60 | )4 | | | 3.01 | | | | 2.36 | | | | 5.82 | | | | 0.57 | 4 | | | (2.77 | ) | | | 5.75 | | | | (0.61 | )4 | | | 3.75 | | | | 2.61 | | | | 6.52 | | | | 0.52 | 4 | | | (3.03 | ) | | | 7.02 | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 22,012 | | | $ | 22,350 | | | $ | 22,659 | | | $ | 23,100 | | | $ | 23,408 | | | $ | 23,215 | | | $ | 26,117 | | | $ | 25,728 | | | $ | 27,333 | | | $ | 27,744 | | | $ | 28,415 | | | $ | 27,805 | | | $ | 28,328 | | | $ | 31,526 | |
| Ratios of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Before reimbursement of expenses by Adviser (%) | | | 0.85 | 5 | | | 0.86 | | | | 0.85 | | | | 0.85 | | | | 0.85 | 5 | | | 0.85 | | | | 0.98 | | | | 0.75 | 5 | | | 0.79 | | | | 0.85 | | | | 0.85 | | | | 0.85 | 5 | | | 0.85 | | | | 1.00 | |
| After reimbursement of expenses by Adviser (%) | | | 0.85 | 5 | | | 0.86 | | | | 0.85 | | | | 0.85 | | | | 0.85 | 5 | | | 0.85 | | | | – | | | | 0.75 | 5 | | | 0.79 | | | | 0.85 | | | | 0.85 | | | | 0.85 | 5 | | | 0.85 | | | | – | |
| Ratio of net investment income to average net assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| After reimbursement of expenses by Adviser (%) | | | 2.13 | 5 | | | 2.12 | | | | 2.45 | | | | 2.63 | | | | 2.58 | 5 | | | 2.71 | | | | 2.88 | | | | 2.35 | 5 | | | 2.27 | | | | 2.44 | | | | 2.65 | | | | 2.79 | 5 | | | 2.92 | | | | 2.97 | |
| Portfolio turnover (%)6 | | | 3 | 4 | | | 12 | | | | 12 | | | | 16 | | | | – | 4 | | | 14 | | | | 12 | | | | 3 | 4 | | | 9 | | | | 15 | | | | 30 | | | | 6 | 4 | | | 24 | | | | 13 | |
| *The Financial Statements presented herein reflect the historical operating results of the Madison Mosaic Funds through April 19, 2013. Effective after market close on this date, the Madison Mosaic Funds reorganized into the Madison Funds. |
| 1 | Effective at the close of business on April 19, 2013, the fiscal year end of the fund changed to October 31. Disclosure represents 1 month of information. |
| 2 | Net investment income (loss) calculated excluding permanent tax adjustments to undistributed net investment income. |
| 3 | Total return without applicable sales charge. |
| 4 | Not annualized. |
| 5 | Annualized. |
| 6 | Portfolio turnover is calculated at the fund level and represents the entire fiscal year or period. |
| See accompanying Notes to Financial Statements. |
| 40 | |
| Madison Funds | April 30, 2017 |
| |
| Financial Highlights for a Share of Beneficial Interest Outstanding |
| |
| | | HIGH QUALITY BOND FUND* | | | | | | | | | | | | | | | | |
| | | CLASS Y | | | | | | | | | | | | | | | | |
| | Six Months
Ended 4/30/17
(unaudited) | | | Year Ended October 31, | | | Year Ended
December 31, | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | 2016 | | | 2015 | | | 2014 | | | | | | 20131 | | | 2012 | | | 2011 | | | | | | | | | | | | | | | | |
| Net Asset Value at beginning of period | | $ | 11.06 | | | $ | 11.04 | | | $ | 11.04 | | | $ | 11.07 | | | | | | $ | 11.21 | | | $ | 11.15 | | | $ | 10.94 | | | | | | | | | | | | | | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income2 | | | 0.07 | | | | 0.12 | | | | 0.11 | | | | 0.11 | | | | | | | 0.09 | | | | 0.13 | | | | 0.16 | | | | | | | | | | | | | | | | |
| Net realized and unrealized gain (loss) on investments | | | (0.10 | ) | | | 0.06 | | | | 0.01 | | | | 0.01 | | | | | | | (0.13 | ) | | | 0.10 | | | | 0.22 | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Total from investment operations | | | (0.03 | ) | | | 0.18 | | | | 0.12 | | | | 0.12 | | | | | | | (0.04 | ) | | | 0.23 | | | | 0.38 | | | | | | | | | | | | | | | | |
| Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.07 | ) | | | (0.12 | ) | | | (0.11 | ) | | | (0.11 | ) | | | | | | (0.08 | ) | | | (0.13 | ) | | | (0.16 | ) | | | | | | | | | | | | | | | |
| Capital gains | | | (0.01 | ) | | | (0.04 | ) | | | (0.01 | ) | | | (0.04 | ) | | | | | | (0.02 | ) | | | (0.04 | ) | | | (0.01 | ) | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Total distributions | | | (0.08 | ) | | | (0.16 | ) | | | (0.12 | ) | | | (0.15 | ) | | | | | | (0.10 | ) | | | (0.17 | ) | | | (0.17 | ) | | | | | | | | | | | | | | | |
| Net increase (decrease) in net asset value | | | (0.11 | ) | | | 0.02 | | | | – | | | | (0.03 | ) | | | | | | (0.14 | ) | | | 0.06 | | | | 0.21 | | | | | | | | | | | | | | | | |
| Net Asset Value at end of period | | $ | 10.95 | | | $ | 11.06 | | | $ | 11.04 | | | $ | 11.04 | | | | | | $ | 11.07 | | | $ | 11.21 | | | $ | 11.15 | | | | | | | | | | | | | | | | |
| Total Return (%)3 | | | (0.25 | )4 | | | 1.62 | | | | 1.11 | | | | 1.12 | | | | | | | (0.35 | )4 | | | 2.04 | | | | 3.53 | | | | | | | | | | | | | | | | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 100,365 | | | $ | 105,807 | | | $ | 102,552 | | | $ | 118,082 | | | | | | $ | 132,688 | | | $ | 109,694 | | | $ | 104,849 | | | | | | | | | | | | | | | | |
| Ratios of expenses to average net assets (%) | | | 0.49 | 5 | | | 0.50 | | | | 0.49 | | | | 0.49 | | | | | | | 0.49 | 5 | | | 0.49 | | | | 0.49 | | | | | | | | | | | | | | | | |
| Ratio of net investment income to average net assets (%) | | | 1.27 | 5 | | | 1.10 | | | | 1.00 | | | | 1.00 | | | | | | | 0.99 | 5 | | | 1.15 | | | | 1.48 | | | | | | | | | | | | | | | | |
| Portfolio turnover (%)6 | | | 15 | 4 | | | 25 | | | | 35 | | | | 20 | | | | | | | 30 | 4 | | | 29 | | | | 9 | | | | | | | | | | | | | | | | |
| |
| |
| | | CORE BOND FUND |
| | | CLASS A | | | CLASS B |
| | Six Months
Ended 4/30/17
(unaudited) | | | Year Ended October 31, | | | | | | | Six Months
Ended 4/30/17
(unaudited) | | Year Ended October 31, | |
| | | | | | | | | | | |
| | | | 2016 | | | 2015 | | | 2014 | | 2013 | | | 2012 | | | | | | | | 2016 | | 2015 | | 2014 | | 2013 | | 2012 | |
| Net Asset Value at beginning of period | | $ | 10.20 | | | $ | 10.09 | | | $ | 10.25 | | | $ | 10.21 | | $ | 10.66 | | | $ | 10.59 | | | | | | | $ | 10.21 | | $ | 10.10 | | $ | 10.25 | | $ | 10.22 | | $ | 10.67 | | $ | 10.59 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income2 | | | 0.10 | | | | 0.20 | | | | 0.19 | | | | 0.22 | | | 0.26 | | | | 0.26 | | | | | | | | 0.06 | | | 0.13 | | | 0.11 | | | 0.14 | | | 0.18 | | | 0.18 | |
| Net realized and unrealized gain (loss) on investments | | | (0.14 | ) | | | 0.21 | | | | (0.05 | ) | | | 0.09 | | | (0.46 | ) | | | 0.07 | | | | | | | | (0.15 | ) | | 0.21 | | | (0.04 | ) | | 0.08 | | | (0.46 | ) | | 0.08 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total from investment operations | | | (0.04 | ) | | | 0.41 | | | | 0.14 | | | | 0.31 | | | (0.20 | ) | | | 0.33 | | | | | | | | (0.09 | ) | | 0.34 | | | 0.07 | | | 0.22 | | | (0.28 | ) | | 0.26 | |
| Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.11 | ) | | | (0.22 | ) | | | (0.21 | ) | | | (0.22 | ) | | (0.25 | ) | | | (0.26 | ) | | | | | | | (0.07 | ) | | (0.15 | ) | | (0.13 | ) | | (0.14 | ) | | (0.17 | ) | | (0.18 | ) |
| Capital gains | | | (0.05 | ) | | | (0.08 | ) | | | (0.09 | ) | | | (0.05 | ) | | – | | | | – | | | | | | | | (0.05 | ) | | (0.08 | ) | | (0.09 | ) | | (0.05 | ) | | – | | | – | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total distributions | | | (0.16 | ) | | | (0.30 | ) | | | (0.30 | ) | | | (0.27 | ) | | (0.25 | ) | | | (0.26 | ) | | | | | | | (0.12 | ) | | (0.23 | ) | | (0.22 | ) | | (0.19 | ) | | (0.17 | ) | | (0.18 | ) |
| Net increase (decrease) in net asset value | | | (0.20 | ) | | | 0.11 | | | | (0.16 | ) | | | 0.04 | | | (0.45 | ) | | | 0.07 | | | | | | | | (0.21 | ) | | 0.11 | | | (0.15 | ) | | 0.03 | | | (0.45 | ) | | 0.08 | |
| Net Asset Value at end of period | | $ | 10.00 | | | $ | 10.20 | | | $ | 10.09 | | | $ | 10.25 | | $ | 10.21 | | | $ | 10.66 | | | | | | | $ | 10.00 | | $ | 10.21 | | $ | 10.10 | | $ | 10.25 | | $ | 10.22 | | $ | 10.67 | |
| Total Return (%)3 | | | (0.36 | )4 | | | 4.21 | | | | 1.34 | | | | 3.04 | | | (1.92 | ) | | | 3.11 | | | | | | | | (0.83 | )4 | | 3.43 | | | 0.69 | | | 2.18 | | | (2.65 | ) | | 2.43 | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 34,335 | | | $ | 34,325 | | | $ | 32,823 | | | $ | 33,973 | | $ | 40,104 | | | $ | 45,671 | | | | | | | $ | 2,304 | | $ | 2,575 | | $ | 2,929 | | $ | 3,445 | | $ | 4,433 | | $ | 6,088 | |
| Ratios of expenses to average net assets (%) | | | 0.905 | | | | 0.91 | | | | 0.90 | | | | 0.90 | | | 0.90 | | | | 0.90 | | | | | | | | 1.655 | | | 1.66 | | | 1.65 | | | 1.65 | | | 1.65 | | | 1.65 | |
| Ratio of net investment income to average net assets (%) | | | 2.035 | | | | 2.00 | | | | 1.85 | | | | 2.10 | | | 2.42 | | | | 2.41 | | | | | | | | 1.285 | | | 1.25 | | | 1.10 | | | 1.36 | | | 1.68 | | | 1.66 | |
| Portfolio turnover (%)6 | | | 114 | | | | 39 | | | | 57 | | | | 41 | | | 24 | | | | 6 | | | | | | | | 114 | | | 39 | | | 57 | | | 41 | | | 24 | | | 6 | |
* The Financial Statements presented herein reflect the historical operating results of the Madison Mosaic Funds through April 19, 2013. Effective after market close on this date, the Madison Mosaic Funds reorganized into the Madison Funds.
1 Effective at the close of business on April 19, 2013, the fiscal year end of the fund changed to October 31. Disclosure represents 10 months of information. 2 Net investment income (loss) calculated excluding permanent tax adjustments to undistributed net investment income.
3 Total return without applicable sales charge.
4 Not annualized.
5 Annualized.
6 Portfolio turnover is calculated at the fund level and represents the entire fiscal year or period.
| See accompanying Notes to Financial Statements. |
| 41 |
| Madison Funds | April 30, 2017 |
| |
| Financial Highlights for a Share of Beneficial Interest Outstanding |
| |
| | | | | | CORE BOND FUND - continued |
| | | | | | CLASS Y | | | CLASS R6 |
| | | | | Six Months
Ended 4/30/17
(unaudited) | | | Year Ended October 31, | | | Six Months
Ended 4/30/17
(unaudited) | | | | Year Ended October 31, | | | Inception
to
10/31/138 | |
| | | | | | | | | | | | | | |
| | | | | | | 2016 | | | 2015 | | | 2014 | | | 2013 | | | 2012 | | | | | | 2016 | | | 2015 | | | 2014 | | | |
| Net Asset Value at beginning of period | | | | | $ | 10.17 | | | $ | 10.07 | | | $ | 10.22 | | | $ | 10.19 | | | $ | 10.64 | | | $ | 10.58 | | | $ | 10.21 | | | | $ | 10.09 | | | $ | 10.24 | | | $ | 10.20 | | | $ | 10.53 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income1 | | | | | | 0.11 | | | | 0.23 | | | | 0.21 | | | | 0.23 | | | | 0.28 | | | | 0.29 | | | | 0.12 | | | | | 0.24 | | | | 0.23 | | | | 0.20 | | | | 0.14 | |
| Net realized and unrealized gain (loss) on investments | | | | | | (0.14 | ) | | | 0.20 | | | | (0.04 | ) | | | 0.09 | | | | (0.45 | ) | | | 0.06 | | | | (0.15 | ) | | | | 0.21 | | | | (0.06 | ) | | | 0.13 | | | | (0.34 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total from investment operations | | | | | | (0.03 | ) | | | 0.43 | | | | 0.17 | | | | 0.32 | | | | (0.17 | ) | | | 0.35 | | | | (0.03 | ) | | | | 0.45 | | | | 0.17 | | | | 0.33 | | | | (0.20 | ) |
| Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | | | | (0.12 | ) | | | (0.25 | ) | | | (0.23 | ) | | | (0.24 | ) | | | (0.28 | ) | | | (0.29 | ) | | | (0.12 | ) | | | | (0.25 | ) | | | (0.23 | ) | | | (0.24 | ) | | | (0.13 | ) |
| Capital gains | | | | | | (0.05 | ) | | | (0.08 | ) | | | (0.09 | ) | | | (0.05 | ) | | | – | | | | – | | | | (0.05 | ) | | | | (0.08 | ) | | | (0.09 | ) | | | (0.05 | ) | | | – | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total distributions | | | | | | (0.17 | ) | | | (0.33 | ) | | | (0.32 | ) | | | (0.29 | ) | | | (0.28 | ) | | | (0.29 | ) | | | (0.17 | ) | | | | (0.33 | ) | | | (0.32 | ) | | | (0.29 | ) | | | (0.13 | ) |
| Net increase (decrease) in net asset value | | | | | | (0.20 | ) | | | 0.10 | | | | (0.15 | ) | | | 0.03 | | | | (0.45 | ) | | | 0.06 | | | | (0.20 | ) | | | | 0.12 | | | | (0.15 | ) | | | 0.04 | | | | (0.33 | ) |
| Net Asset Value at end of period | | | | | $ | 9.97 | | | $ | 10.17 | | | $ | 10.07 | | | $ | 10.22 | | | $ | 10.19 | | | $ | 10.64 | | | $ | 10.01 | | | | $ | 10.21 | | | $ | 10.09 | | | $ | 10.24 | | | $ | 10.20 | |
| Total Return (%)2 | | | | | | (0.23 | )4 | | | 4.40 | | | | 1.71 | | | | 3.23 | | | | (1.65 | ) | | | 3.36 | | | | (0.23 | )4 | | | | 4.59 | | | | 1.71 | | | | 3.32 | | | | (1.86 | )4 |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | | | | $ | 171,594 | | | $ | 178,046 | | | $ | 186,414 | | | $ | 187,790 | | | $ | 109,247 | | | $ | 74,486 | | | $ | 1,781 | | | | $ | 1,876 | | | $ | 1,693 | | | $ | 10 | | | $ | 10 | |
| Ratios of expenses to average net assets (%) | | | | | | 0.65 | 5 | | | 0.66 | | | | 0.65 | | | | 0.65 | | | | 0.65 | | | | 0.65 | | | | 0.52 | 5 | | | | 0.53 | | | | 0.52 | | | | 0.54 | | | | 0.53 | 5 |
| Ratio of net investment income to average net assets (%) | | | | | | 2.28 | 5 | | | 2.25 | | | | 2.10 | | | | 2.30 | | | | 2.64 | | | | 2.64 | | | | 2.41 | 5 | | | | 2.38 | | | | 2.24 | | | | 1.99 | | | | 2.71 | 5 |
| Portfolio turnover (%)3 | | | | | | 11 | 4 | | | 39 | | | | 57 | | | | 41 | | | | 24 | | | | 6 | | | | 11 | 4 | | | | 39 | | | | 57 | | | | 41 | | | | 24 | 4 |
| |
| |
| | | CORPORATE BOND FUND* | | HIGH INCOME FUND |
| | | CLASS Y | | CLASS A |
| | | | | | | | | | | | | | | | | | | | | | | | | | Year Ended
December 31,
2011 | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months
Ended 4/30/17
(unaudited) | | | | | | | | | | | | | Six Months
Ended 4/30/17
(unaudited) | | | |
| | | | Year Ended October 31, | | | | | | | | | | | | | Year Ended October 31, |
| | | | 2016 | | | 2015 | | | 2014 | | | 20137 | | | 2012 | | | | | | | | | 2016 | | 2015 | | 2014 | | | 2013 | | 2012 | |
| Net Asset Value at beginning of period | | $ | 11.69 | | $ | 11.34 | | | $ | 11.49 | | | $ | 11.27 | | | $ | 11.67 | | | $ | 11.27 | | | $ | 10.81 | | | $ | 6.03 | | | $ | 5.93 | | $ | 6.79 | | $ | 7.15 | | | $ | 7.15 | | $ | 6.95 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income1 | | | 0.17 | | | 0.33 | | | | 0.29 | | | | 0.25 | | | | 0.19 | | | | 0.24 | | | | 0.22 | | | | 0.14 | | | | 0.29 | | | 0.32 | | | 0.35 | | | | 0.41 | | | 0.45 | |
| Net realized and unrealized gain (loss) on investments | | | (0.15 | ) | | 0.39 | | | | (0.13 | ) | | | 0.22 | | | | (0.38 | ) | | | 0.39 | | | | 0.61 | | | | 0.11 | | | | 0.10 | | | (0.47 | ) | | – | | | | 0.03 | | | 0.20 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total from investment operations | | | 0.02 | | | 0.72 | | | | 0.16 | | | | 0.47 | | | | (0.19 | ) | | | 0.63 | | | | 0.83 | | | | 0.25 | | | | 0.39 | | | (0.15 | ) | | 0.35 | | | | 0.44 | | | 0.65 | |
| Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.17 | ) | | (0.33 | ) | | | (0.29 | ) | | | (0.25 | ) | | | (0.19 | ) | | | (0.23 | ) | | | (0.36 | ) | | | (0.14 | ) | | | (0.29 | ) | | (0.32 | ) | | (0.36 | ) | | | (0.44 | ) | | (0.45 | ) |
| Capital gains | | | (0.04 | ) | | (0.04 | ) | | | (0.02 | ) | | | – | | | | (0.02 | ) | | | (0.00 | )6 | | | (0.01 | ) | | | – | | | | – | | | (0.39 | ) | | (0.35 | ) | | | – | | | – | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total distributions | | | (0.21 | ) | | (0.37 | ) | | | (0.31 | ) | | | (0.25 | ) | | | (0.21 | ) | | | (0.23 | ) | | | (0.37 | ) | | | (0.14 | ) | | | (0.29 | ) | | (0.71 | ) | | (0.71 | ) | | | (0.44 | ) | | (0.45 | ) |
| Net increase (decrease) in net asset value | | | (0.19 | ) | | 0.35 | | | | (0.15 | ) | | | 0.22 | | | | (0.40 | | | | 0.40 | | | | 0.46 | | | | 0.11 | | | | 0.10 | | | (0.86 | ) | | (0.36 | ) | | | (0.00 | )6 | | 0.20 | |
| Net Asset Value at end of period | | $ | 11.50 | | $ | 11.69 | | | $ | 11.34 | | | $ | 11.49 | | | $ | 11.27 | | | $ | 11.67 | | | $ | 11.27 | | | $ | 6.14 | | | $ | 6.03 | | $ | 5.93 | | $ | 6.79 | | | $ | 7.15 | | $ | 7.15 | |
| Total Return (%)2 | | | 0.194 | | | 6.45 | | | | 1.40 | | | | 4.21 | | | | (1.58 | )4 | | | 5.72 | | | | 7.83 | | | | 4.244 | | | | 6.91 | | | (2.29 | ) | | 5.20 | | | | 6.29 | | | 9.67 | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 21,553 | | $ | 23,846 | | | $ | 23,545 | | | $ | 27,010 | | | $ | 19,743 | | | $ | 19,813 | | | $ | 17,550 | | | $ | 21,117 | | | $ | 21,403 | | $ | 23,155 | | $ | 28,596 | | | $ | 28,530 | | $ | 27,061 | |
| Ratios of expenses to average net assets (%) | | | 0.65 | 5 | | 0.66 | | | | 0.65 | | | | 0.65 | | | | 0.65 | 5 | | | 0.67 | | | | 0.69 | | | | 1.005 | | | | 1.01 | | | 1.00 | | | 1.00 | | | | 1.00 | | | 1.00 | |
| Ratio of net investment income to average net assets (%) | | | 2.93 | 5 | | 2.86 | | | | 2.55 | | | | 2.22 | | | | 2.05 | 5 | | | 2.04 | | | | 1.98 | | | | 4.825 | | | | 4.98 | | | 5.12 | | | 5.05 | | | | 5.63 | | | 6.35 | |
| Portfolio turnover (%)3 | | | 7 | 4 | | 36 | | | | 37 | | | | 31 | | | | 10 | 4 | | | 11 | | | | 10 | | | | 204 | | | | 73 | | | 28 | | | 52 | | | | 28 | | | 36 | |
* The Financial Statements presented herein reflect the historical operating results of the Madison Mosaic Funds through April 19, 2013. Effective after market close on this date, the Madison Mosaic Funds reorganized into the Madison Funds.
1 Net investment income (loss) calculated excluding permanent tax adjustments to undistributed net investment income.
2 Total return without applicable sales charge.
3 Portfolio turnover is calculated at the fund level and represents the entire fiscal year or period.
4 Not annualized.
5 Annualized.
6 Amounts represent less than $0.005 per share.
7 Effective at the close of business on April 19, 2013, the fiscal year end of the fund changed to October 31. Disclosure represents 10 months of information.
8 Commenced investment operations at the close of business on April 22, 2013.
| See accompanying Notes to Financial Statements. |
| 42 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Madison Funds | April 30, 2017 |
| |
| |
| Financial Highlights for a Share of Beneficial Interest Outstanding |
| |
| |
| | | HIGH INCOME FUND - continued |
| | | CLASS B | | | CLASS Y |
| | Six Months
Ended 4/30/17
(unaudited) | | | Year Ended October 31, | | | Six Months
Ended 4/30/17
(unaudited) | | | Year Ended October 31, |
| | | | | |
| | | | 2016 | | | 2015 | | | 2014 | | | 2013 | | | 2012 | | | | | | 2016 | | | 2015 | | | 2014 | | | 2013 | | | 2012 | |
| Net Asset Value at beginning of period | | $ | 6.19 | | | $ | 6.08 | | | $ | 6.95 | | | $ | 7.30 | | | $ | 7.26 | | | $ | 7.05 | | | | $ | 5.94 | | | $ | 5.86 | | | $ | 6.73 | | | $ | 7.09 | | | $ | 7.10 | | | $ | 6.92 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income1 | | | 0.13 | | | | 0.26 | | | | 0.29 | | | | 0.30 | | | | 0.37 | | | | 0.40 | | | | | 0.11 | | | | 0.27 | | | | 0.01 | | | | 1.02 | | | | 0.45 | | | | 0.47 | |
| Net realized and unrealized gain (loss) on investments | | | 0.11 | | | | 0.10 | | | | (0.50 | ) | | | – | | | | 0.03 | | | | 0.20 | | | | | 0.15 | | | | 0.13 | | | | (0.14 | ) | | | (0.65 | ) | | | 0.01 | | | | 0.19 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total from investment operations | | | 0.24 | | | | 0.36 | | | | (0.21 | ) | | | 0.30 | | | | 0.40 | | | | 0.60 | | | | | 0.26 | | | | 0.40 | | | | (0.13 | ) | | | 0.37 | | | | 0.46 | | | | 0.66 | |
| Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.12 | ) | | | (0.25 | ) | | | (0.27 | ) | | | (0.30 | ) | | | (0.36 | ) | | | (0.39 | ) | | | | (0.16 | ) | | | (0.32 | ) | | | (0.35 | ) | | | (0.38 | ) | | | (0.47 | ) | | | (0.48 | ) |
| Capital gains | | | – | | | | – | | | | (0.39 | ) | | | (0.35 | ) | | | – | | | | – | | | | | – | | | | – | | | | (0.39 | ) | | | (0.35 | ) | | | – | | | | – | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total distributions | | | (0.12 | ) | | | (0.25 | ) | | | (0.66 | ) | | | (0.65 | ) | | | (0.36 | ) | | | (0.39 | ) | | | | (0.16 | ) | | | (0.32 | ) | | | (0.74 | ) | | | (0.73 | ) | | | (0.47 | ) | | | (0.48 | ) |
| Net increase (decrease) in net asset value | | | 0.12 | | | | 0.11 | | | | (0.87 | ) | | | (0.35 | ) | | | 0.04 | | | | 0.21 | | | | | 0.10 | | | | 0.08 | | | | (0.87 | ) | | | (0.36 | ) | | | (0.01 | ) | | | 0.18 | |
| Net Asset Value at end of period | | $ | 6.31 | | | $ | 6.19 | | | $ | 6.08 | | | $ | 6.95 | | | $ | 7.30 | | | $ | 7.26 | | | | $ | 6.04 | | | $ | 5.94 | | | $ | 5.86 | | | $ | 6.73 | | | $ | 7.09 | | | $ | 7.10 | |
| Total Return (%)2 | | | 3.893 | | | | 6.07 | | | | (3.11 | ) | | | 4.47 | | | | 5.60 | | | | 8.74 | | | | | 4.493 | | | | 7.15 | | | | (2.00 | ) | | | 5.59 | | | | 6.68 | | | | 9.92 | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 1,598 | | | $ | 1,651 | | | $ | 1,685 | | | $ | 2,267 | | | $ | 2,566 | | | $ | 2,983 | | | | $ | 735 | | | $ | 712 | | | $ | 664 | | | $ | 388 | | | $ | 17,449 | | | $ | 53,121 | |
| Ratios of expenses to average net assets (%) | | | 1.754 | | | | 1.76 | | | | 1.75 | | | | 1.75 | | | | 1.75 | | | | 1.75 | | | | | 0.754 | | | | 0.75 | | | | 0.75 | | | | 0.75 | | | | 0.75 | | | | 0.75 | |
| Ratio of net investment income to average net assets (%) | | | 4.074 | | | | 4.23 | | | | 4.36 | | | | 4.30 | | | | 4.89 | | | | 5.60 | | | | | 5.094 | | | | 5.20 | | | | 5.39 | | | | 5.36 | | | | 5.95 | | | | 6.61 | |
| Portfolio turnover (%)5 | | | 203 | | | | 73 | | | | 28 | | | | 52 | | | | 28 | | | | 36 | | | | | 203 | | | | 73 | | | | 28 | | | | 52 | | | | 28 | | | | 36 | |
| |
| |
| | | DIVERSIFIED INCOME FUND |
| | | CLASS A | | | CLASS B |
| | Six Months
Ended 4/30/17
(unaudited) | | | Year Ended October 31, | | | Six Months
Ended 4/30/17
(unaudited) | | | Year Ended October 31, |
| | | | | | | |
| | | | 2016 | | | 2015 | | | 2014 | | | 2013 | | | 2012 | | | | | | 2016 | | | 2015 | | | 2014 | | | 2013 | | | 2012 | |
| Net Asset Value at beginning of period | | $ | 14.92 | | | $ | 14.75 | | | $ | 14.79 | | | $ | 13.89 | | | $ | 12.54 | | | $ | 11.68 | | | | $ | 15.01 | | | $ | 14.83 | | | $ | 14.88 | | | $ | 13.98 | | | $ | 12.61 | | | $ | 11.74 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income1 | | | 0.13 | | | | 0.25 | | | | 0.23 | | | | 0.23 | | | | 0.24 | | | | 0.26 | | | | | 0.07 | | | | 0.14 | | | | 0.13 | | | | 0.13 | | | | 0.13 | | | | 0.18 | |
| Net realized and unrealized gain (loss) on investments | | | 0.79 | | | | 0.52 | | | | (0.03 | ) | | | 0.90 | | | | 1.35 | | | | 0.86 | | | | | 0.79 | | | | 0.53 | | | | (0.04 | ) | | | 0.90 | | | | 1.37 | | | | 0.86 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total from investment operations | | | 0.92 | | | | 0.77 | | | | 0.20 | | | | 1.13 | | | | 1.59 | | | | 1.12 | | | | | 0.86 | | | | 0.67 | | | | 0.09 | | | | 1.03 | | | | 1.50 | | | | 1.04 | |
| Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.14 | ) | | | (0.26 | ) | | | (0.24 | ) | | | (0.23 | ) | | | (0.24 | ) | | | (0.26 | ) | | | | (0.08 | ) | | | (0.15 | ) | | | (0.14 | ) | | | (0.13 | ) | | | (0.13 | ) | | | (0.17 | ) |
| Capital gains | | | (0.54 | ) | | | (0.34 | ) | | | – | | | | – | | | | – | | | | – | | | | | (0.54 | ) | | | (0.34 | ) | | | – | | | | – | | | | – | | | | – | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total distributions | | | (0.68 | ) | | | (0.60 | ) | | | (0.24 | ) | | | (0.23 | ) | | | (0.24 | ) | | | (0.26 | ) | | | | (0.62 | ) | | | (0.49 | ) | | | (0.14 | ) | | | (0.13 | ) | | | (0.13 | ) | | | (0.17 | ) |
| Net increase in net asset value | | | 0.24 | | | | 0.17 | | | | (0.04 | ) | | | 0.90 | | | | 1.35 | | | | 0.86 | | | | | 0.24 | | | | 0.18 | | | | (0.05 | ) | | | 0.90 | | | | 1.37 | | | | 0.87 | |
| Net Asset Value at end of period | | $ | 15.16 | | | $ | 14.92 | | | $ | 14.75 | | | $ | 14.79 | | | $ | 13.89 | | | $ | 12.54 | | | | $ | 15.25 | | | $ | 15.01 | | | $ | 14.83 | | | $ | 14.88 | | | $ | 13.98 | | | $ | 12.61 | |
| Total Return (%)2 | | | 6.263 | | | | 5.38 | | | | 1.39 | | | | 8.22 | | | | 12.76 | | | | 9.69 | | | | | 5.833 | | | | 4.63 | | | | 0.58 | | | | 7.37 | | | | 11.99 | | | | 8.89 | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 132,325 | | | $ | 128,208 | | | $ | 121,026 | | | $ | 119,364 | | | $ | 105,521 | | | $ | 86,952 | | | | $ | 13,034 | | | $ | 13,293 | | | $ | 13,442 | | | $ | 14,378 | | | $ | 14,297 | | | $ | 14,387 | |
| Ratios of expenses to average net assets (%) | | | 1.104 | | | | 1.11 | | | | 1.10 | | | | 1.10 | | | | 1.10 | | | | 1.10 | | | | | 1.854 | | | | 1.86 | | | | 1.85 | | | | 1.85 | | | | 1.85 | | | | 1.85 | |
| Ratio of net investment income to average net assets (%) | | | 1.784 | | | | 1.68 | | | | 1.59 | | | | 1.61 | | | | 1.75 | | | | 2.14 | | | | | 1.044 | | | | 0.94 | | | | 0.84 | | | | 0.86 | | | | 1.01 | | | | 1.42 | |
| Portfolio turnover (%)5 | | | 93 | | | | 35 | | | | 25 | | | | 23 | | | | 18 | | | | 21 | | | | | 93 | | | | 35 | | | | 25 | | | | 23 | | | | 18 | | | | 21 | |
1 Net investment income (loss) calculated excluding permanent tax adjustments to undistributed net investment income.
2 Total return without applicable sales charge.
3 Not annualized.
4 Annualized.
5 Portfolio turnover is calculated at the fund level and represents the entire fiscal year or period.
| See accompanying Notes to Financial Statements. |
| 43 |
| Madison Funds | April 30, 2017 |
| |
| |
| Financial Highlights for a Share of Beneficial Interest Outstanding |
| |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | DIVERSIFIED INCOME FUND - continued | | | | | | | | | | | | | | | | | | | |
| | | | | CLASS C | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months
Ended 4/30/17
(unaudited) | | | | Inception
to
10/31/122 | | | | | | | | | | | | | | | | | | | |
| | | | Year Ended October 31, | | | | | | | | | | | | | | | | | | | | |
| | | | | 2016 | | 2015 | | 2014 | | 2013 | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value at beginning of period | | $ | 15.01 | | $ | 14.83 | | $ | 14.88 | | $ | 13.97 | | $ | 12.61 | | $ | 12.53 | | | | | | | | | | | | | | | | | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income3 | | | 0.07 | | | 0.14 | | | 0.13 | | | 0.13 | | | 0.13 | | | 0.04 | | | | | | | | | | | | | | | | | | | |
| Net realized and unrealized gain (loss) on investments | | | 0.78 | | | 0.53 | | | (0.04 | ) | | 0.91 | | | 1.36 | | | 0.08 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Total from investment operations | | | 0.85 | | | 0.67 | | | 0.09 | | | 1.04 | | | 1.49 | | | 0.12 | | | | | | | | | | | | | | | | | | | |
| Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.08 | ) | | (0.15 | ) | | (0.14 | ) | | (0.13 | ) | | (0.13 | ) | | (0.04 | ) | | | | | | | | | | | | | | | | | | |
| Capital gains | | | (0.54 | ) | | (0.34 | ) | | – | | | – | | | – | | | – | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
| Total distributions | | | (0.62 | ) | | (0.49 | ) | | (0.14 | ) | | (0.13 | ) | | (0.13 | ) | | (0.04 | ) | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net asset value | | | 0.23 | | | 0.18 | | | (0.05 | ) | | 0.91 | | | 1.36 | | | 0.08 | | | | | | | | | | | | | | | | | | | |
| Net Asset Value at end of period | | $ | 15.24 | | $ | 15.01 | | $ | 14.83 | | $ | 14.88 | | $ | 13.97 | | $ | 12.61 | | | | | | | | | | | | | | | | | | | |
| Total Return (%)4 | | | 5.76 | 5 | | 4.63 | | | 0.64 | | | 7.38 | | | 11.91 | | | 0.94 | 5 | | | | | | | | | | | | | | | | | | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | �� | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 14,302 | | $ | 13,498 | | $ | 12,766 | | $ | 11,545 | | $ | 6,732 | | $ | 924 | | | | | | | | | | | | | | | | | | | |
| Ratios of expenses to average net assets (%) | | | 1.85 | 6 | | 1.86 | | | 1.85 | | | 1.85 | | | 1.84 | | | 1.83 | 5 | | | | | | | | | | | | | | | | | | |
| Ratio of net investment income to average net assets (%) | | | 1.03 | 6 | | 0.93 | | | 0.84 | | | 0.83 | | | 0.88 | | | 0.83 | 5 | | | | | | | | | | | | | | | | | | |
| Portfolio turnover (%)7 | | | 9 | 5 | | 35 | | | 25 | | | 23 | | | 18 | | | 21 | 5 | | | | | | | | | | | | | | | | | | |
| |
| |
| | | COVERED CALL & EQUITY INCOME FUND1 |
| | | CLASS A | | | | | CLASS C |
| | | Six Months
Ended 4/30/17
(unaudited) | | | | | | | | | | | | Six Months
Ended 4/30/17
(unaudited) | | | | | | | | | Inception
to
10/31/122 | |
| | | | Year Ended October 31, | | | | Year Ended October 31, | | | |
| | | | 2016 | | 2015 | | 2014 | | 2013 | | 2012 | | | | 2016 | | 2015 | | 2014 | | 2013 | | | |
| Net Asset Value at beginning of period | | $ | 8.95 | | $ | 9.14 | | $ | 9.92 | | $ | 9.99 | | $ | 9.76 | | $ | 9.76 | | $ | 8.63 | | $ | 8.89 | | $ | 9.74 | | $ | 9.89 | | $ | 9.74 | | $ | 9.66 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income3 | | | – | | | 0.05 | | | 0.06 | | | 0.08 | | | 0.02 | | | 0.00 | 8 | | (0.02 | ) | | 0.06 | | | 0.16 | | | 0.08 | | | 0.20 | | | 0.00 | 8 |
| Net realized and unrealized gain (loss) on investments | | | 0.42 | | | 0.33 | | | (0.06 | ) | | 0.77 | | | 1.12 | | | 0.82 | | | 0.39 | | | 0.24 | | | (0.23 | ) | | 0.69 | | | 0.86 | | | 0.28 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total from investment operations | | | 0.42 | | | 0.38 | | | – | | | 0.85 | | | 1.14 | | | 0.82 | | | 0.37 | | | 0.30 | | | (0.07 | ) | | 0.77 | | | 1.06 | | | 0.28 | |
| Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.13 | ) | | (0.41 | ) | | (0.50 | ) | | (0.60 | ) | | (0.60 | ) | | – | | | (0.13 | ) | | (0.40 | ) | | (0.50 | ) | | (0.60 | ) | | (0.60 | ) | | – | |
| Capital gains | | | (0.21 | ) | | (0.16 | ) | | (0.28 | ) | | (0.32 | ) | | (0.31 | ) | | (0.82 | ) | | (0.21 | ) | | (0.16 | ) | | (0.28 | ) | | (0.32 | ) | | (0.31 | ) | | (0.20 | ) |
| | | | | | | | | | | | | | | | | | | | | |
| Total distributions | | | (0.34 | ) | | (0.57 | ) | | (0.78 | ) | | (0.92 | ) | | (0.91 | ) | | (0.82 | ) | | (0.34 | ) | | (0.56 | ) | | (0.78 | ) | | (0.92 | ) | | (0.91 | ) | | (0.20 | ) |
| Net increase (decrease) in net asset value | | | 0.08 | | | (0.19 | ) | | (0.78 | ) | | (0.07 | ) | | 0.23 | | | – | | | 0.03 | | | (0.26 | ) | | (0.85 | ) | | (0.15 | ) | | 0.15 | | | 0.08 | |
| Net Asset Value at end of period | | $ | 9.03 | | $ | 8.95 | | $ | 9.14 | | $ | 9.92 | | $ | 9.99 | | $ | 9.76 | | $ | 8.66 | | $ | 8.63 | | $ | 8.89 | | $ | 9.74 | | $ | 9.89 | | $ | 9.74 | |
| Total Return (%)4 | | | 4.70 | 5 | | 4.29 | | | (0.18 | ) | | 8.90 | | | 12.29 | | | 8.61 | | | 4.26 | 5 | | 3.53 | | | (0.83 | ) | | 8.01 | | | 11.44 | | | 2.88 | 5 |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 18,804 | | $ | 18,252 | | $ | 16,042 | | $ | 11,373 | | $ | 7,559 | | $ | 6,297 | | $ | 14,091 | | $ | 13,519 | | $ | 9,287 | | $ | 4,805 | | $ | 2,258 | | $ | 527 | |
| Ratios of expenses to average net assets (%) | | | 1.25 | 6 | | 1.25 | | | 1.25 | | | 1.25 | | | 1.25 | | | 1.24 | | | 2.00 | 6 | | 2.00 | | | 1.99 | | | 2.00 | | | 2.00 | | | 1.96 | 6 |
| Ratio of net investment income (loss) to average net assets (%) | | | 0.10 | 6 | | 0.17 | | | 0.13 | | | (0.30 | ) | | (0.12 | ) | | (0.15 | ) | | (0.65 | )6 | | (0.58 | ) | | (0.59 | ) | | (1.07 | ) | | (0.91 | ) | | (0.89 | )6 |
| Portfolio turnover (%)7 | | | 81 | 5 | | 135 | | | 107 | | | 139 | | | 100 | | | 84 | | | 81 | 5 | | 135 | | | 107 | | | 139 | | | 100 | | | 84 | 5 |
1 Prior to close of business on February 28, 2014, the Fund was known as the Equity Income Fund. 2 Commenced investment operations at close of business on July 31, 2012.
3 Net investment income (loss) calculated excluding permanent tax adjustments to undistributed net investment income. 4 Total return without applicable sales charge.
5 Not annualized.
6 Annualized.
7 Portfolio turnover is calculated at the fund level and represents the entire fiscal year or period.
8 Amounts represent less than $0.005 per share.
| See accompanying Notes to Financial Statements. |
| 44 | |
| Madison Funds | April 30, 2017 |
| |
| Financial Highlights for a Share of Beneficial Interest Outstanding |
| |
| | | | | | COVERED CALL & EQUITY INCOME FUND1 - continued |
| | | | | | CLASS Y | | | CLASS R6 |
| | | | | | Six Months
Ended 4/30/17
(unaudited) | | | | | | Six Months
Ended 4/30/17
(unaudited) | | | | | | | Inception
to
10/31/122 | |
| | | | | | | | Year Ended October 31, | | | | | | | | Year Ended October 31, | | |
| | | | | | | | 2016 | | | 2015 | | | 2014 | | | 2013 | | | 2012 | | | | | | | | | 2016 | | | 2015 | | | 2014 | | | 2013 | | |
| Net Asset Value at beginning of period | | | | | $ | 9.11 | | | $ | 9.27 | | | $ | 10.03 | | | $ | 10.08 | | | $ | 9.82 | | | $ | 9.81 | | | $ | 9.16 | | | | �� | | | $ | 9.31 | | | $ | 10.06 | | | $ | 10.09 | | | $ | 9.82 | | $ | 9.72 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income3 | | | | | | 0.01 | | | | 0.08 | | | | 0.14 | | | | 0.22 | | | | (0.28 | ) | | | 0.008 | | | | 0.01 | | | | | | | | 0.07 | | | | 0.24 | | | | 0.13 | | | | 0.04 | | | 0.008 | |
| Net realized and unrealized gain on investments | | | | | | 0.43 | | | | 0.33 | | | | (0.12 | ) | | | 0.67 | | | | 1.45 | | | | 0.84 | | | | 0.44 | | | | | | | | 0.35 | | | | (0.21 | ) | | | 0.78 | | | | 1.14 | | | 0.30 | |
| Total from investment operations | | | | | | 0.44 | | | | 0.41 | | | | 0.02 | | | | 0.89 | | | | 1.17 | | | | 0.84 | | | | 0.45 | | | | | | | | 0.42 | | | | 0.03 | | | | 0.91 | | | | 1.18 | | | 0.30 | |
| Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | | | | (0.14 | ) | | | (0.41 | ) | | | (0.50 | ) | | | (0.62 | ) | | | (0.60 | ) | | | (0.02 | ) | | | (0.14 | ) | | | | | | | (0.41 | ) | | | (0.50 | ) | | | (0.62 | ) | | | (0.60 | ) | | – | |
| Capital gains | | | | | | (0.21 | ) | | | (0.16 | ) | | | (0.28 | ) | | | (0.32 | ) | | | (0.31 | ) | | | (0.81 | ) | | | (0.21 | ) | | | | | | | (0.16 | ) | | | (0.28 | ) | | | (0.32 | ) | | | (0.31 | ) | | (0.20 | ) |
| Total distributions | | | | | | (0.35 | ) | | | (0.57 | ) | | | (0.78 | ) | | | (0.94 | ) | | | (0.91 | ) | | | (0.83 | ) | | | (0.35 | ) | | | | | | | (0.57 | ) | | | (0.78 | ) | | | (0.94 | ) | | | (0.91 | ) | | (0.20 | ) |
| Net increase (decrease) in net asset value | | | | | | 0.09 | | | | (0.16 | ) | | | (0.76 | ) | | | (0.05 | ) | | | 0.26 | | | | 0.01 | | | | 0.10 | | | | | | | | (0.15 | ) | | | (0.75 | ) | | | (0.03 | ) | | | 0.27 | | | 0.10 | |
| Net Asset Value at end of period | | | | | $ | 9.20 | | | $ | 9.11 | | | $ | 9.27 | | | $ | 10.03 | | | $ | 10.08 | | | $ | 9.82 | | | $ | 9.26 | | | | | | | $ | 9.16 | | | $ | 9.31 | | | $ | 10.06 | | | $ | 10.09 | | $ | 9.82 | |
| Total Return (%)4 | | | | | | 4.795 | | | | 4.63 | | | | 0.13 | | | | 9.08 | | | | 12.60 | | | | 8.73 | | | | 4.87 | 5 | | | | | | | 4.72 | | | | 0.23 | | | | 9.29 | | | | 12.75 | | | 3.07 | 5 |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | | | | $ | 84,775 | | | $ | 71,241 | | | $ | 60,916 | | | $ | 43,891 | | | $ | 29,307 | | | $ | 81,779 | | | $ | 2,387 | | | | | | | $ | 3,110 | | | $ | 2,826 | | | $ | 152 | | | $ | 116 | | $ | 103 | |
| Ratios of expenses to average net assets (%) | | | | | | 1.00 | 6 | | | 1.00 | | | | 1.00 | | | | 1.00 | | | | 1.00 | | | | 1.00 | | | | 0.87 | 6 | | | | | | | 0.88 | | | | 0.87 | | | | 0.87 | | | | 0.87 | | | 0.86 | 6 |
| Ratio of net investment income (loss) to average net assets (%) | | | | | | 0.34 | 6 | | | 0.42 | | | | 0.40 | | | | (0.03 | ) | | | 0.14 | | | | 0.09 | | | | 0.51 | 6 | | | | | | | 0.55 | | | | 0.70 | | | | 0.10 | | | | 0.21 | | | 0.17 | 6 |
| Portfolio turnover (%)7 | | | | | | 81 | 5 | | | 135 | | | | 107 | | | | 139 | | | | 100 | | | | 84 | | | | 81 | 5 | | | | | | | 135 | | | | 107 | | | | 139 | | | | 100 | | | 84 | 5 |
| |
| |
| | | DIVIDEND INCOME FUND* | | | LARGE CAP VALUE FUND | | | | |
| | | CLASS Y | | | CLASS A | | | | |
| | | | | | | | | | | | | | | | | | | | | | Year Ended
December 31, | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months
Ended 4/30/17
(unaudited) | | Year Ended October 31, | | | | | Six Months
Ended 4/30/17
(unaudited) | | | Year Ended October 31, | | | | |
| | | | | | | | | | | | | |
| | | | 2016 | | | 2015 | | | 2014 | | | 20139 | | | 2012 | | | 2011 | | | | | 2016 | | | 2015 | | | 2014 | | | 2013 | | | 2012 | | | | |
| Net Asset Value at beginning of period | | $ | 22.38 | | $ | 22.28 | | | $ | 23.59 | | | $ | 21.94 | | | $ | 17.90 | | | $ | 17.17 | | | $ | 17.50 | | | $ | 15.47 | | | $ | 16.33 | | | $ | 19.18 | | | $ | 17.04 | | | $ | 13.99 | | | $ | 12.42 | | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income3 | | | 0.24 | | | 0.33 | | | | 0.40 | | | | 0.38 | | | | 0.28 | | | | 0.36 | | | | 0.20 | | | | 0.06 | | | | 0.16 | | | | 0.08 | | | | 0.13 | | | | 0.18 | | | | 0.21 | | | | |
| Net realized and unrealized gain (loss)on investments | | | 2.31 | | | 0.99 | | | | 0.01 | | | | 2.29 | | | | 4.03 | | | | 1.50 | | | | 0.10 | | | | 1.29 | | | | 0.92 | | | | (0.10 | ) | | | 2.15 | | | | 3.07 | | | | 1.55 | | | | |
| Total from investment operations | | | 2.55 | | | 1.32 | | | | 0.41 | | | | 2.67 | | | | 4.31 | | | | 1.86 | | | | 0.30 | | | | 1.35 | | | | 1.08 | | | | (0.02 | ) | | | 2.28 | | | | 3.25 | | | | 1.76 | | | | |
| Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.22 | ) | | (0.32 | ) | | | (0.38 | ) | | | (0.38 | ) | | | (0.27 | ) | | | (0.35 | ) | | | (0.20 | ) | | | (0.18 | ) | | | (0.10 | ) | | | (0.14 | ) | | | (0.14 | ) | | | (0.20) | | | | (0.19) | | | | |
| Capital gains | | | (0.54 | ) | | (0.90 | ) | | | (1.34 | ) | | | (0.64 | ) | | | – | | | | (0.78 | ) | | | (0.43 | ) | | | (2.07 | ) | | | (1.84 | ) | | | (2.69 | ) | | | – | | | | – | | | | – | | | | |
| Total distributions | | | (0.76 | ) | | (1.22 | ) | | | (1.72 | ) | | | (1.02 | ) | | | (0.27 | ) | | | (1.13 | ) | | | (0.63 | ) | | | (2.25 | ) | | | (1.94 | ) | | | (2.83 | ) | | | (0.14 | ) | | | (0.20) | | | | (0.19) | | | | |
| Net increase (decrease) in net asset value | | | 1.79 | | | 0.10 | | | | (1.31 | ) | | | 1.65 | | | | 4.04 | | | | 0.73 | | | | (0.33 | ) | | | (0.90 | ) | | | (0.86 | ) | | | (2.85 | ) | | | 2.14 | | | | 3.05 | | | | 1.57 | | | | |
| Net Asset Value at end of period | | $ | 24.17 | | $ | 22.38 | | | $ | 22.28 | | | $ | 23.59 | | | $ | 21.94 | | | $ | 17.90 | | | $ | 17.17 | | | $ | 14.57 | | | $ | 15.47 | | | $ | 16.33 | | | $ | 19.18 | | | $ | 17.04 | | | $ | 13.99 | | | | |
| Total Return (%)4 | | | 11.535 | | | 6.16 | | | | 1.76 | | | | 12.42 | | | | 24.18 | 5 | | | 10.86 | | | | 1.73 | | | | 9.23 | 5 | | | 7.16 | | | | (0.80 | | | | 13.47 | | | | 23.58 | | | | 14.37 | | | | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 103,359 | | $ | 102,402 | | | $ | 20,925 | | | $ | 21,518 | | | $ | 18,658 | | | $ | 13,263 | | | $ | 11,189 | | | $ | 66,709 | | | $ | 62,757 | | | $ | 63,566 | | | $ | 70,495 | | | $ | 67,048 | | | $ | 58,537 | | | | |
| Ratios of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Before reimbursement of expenses by Adviser (%) | | | 1.10 | 6 | | 1.10 | | | | 1.10 | | | | 1.10 | | | | 1.10 | 6 | | | 1.17 | | | | 1.25 | | | | 1.16 | 6 | | | 1.17 | | | | 1.16 | | | | 1.16 | | | | 1.16 | | | | 1.16 | | | | |
| After reimbursement of expenses by Adviser (%) | | | 0.95 | 6 | | 0.95 | | | | 0.95 | | | | 0.95 | | | | 0.95 | 6 | | | 1.09 | | | | 1.25 | | | | 1.16 | 6 | | | 1.17 | | | | 1.16 | | | | 1.16 | | | | 1.16 | | | | 1.16 | | | | |
| Ratio of net investment income to average net assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| After reimbursement of expenses by Adviser (%) | | | 2.02 | 6 | | 1.61 | | | | 1.75 | | | | 1.66 | | | | 1.66 | 6 | | | 1.95 | | | | – | | | | 0.77 | 6 | | | 1.02 | | | | 0.47 | | | | 0.69 | | | | 1.12 | | | | 1.51 | | | | |
| Portfolio turnover (%)7 | | | 9 | 5 | | 33 | | | | 24 | | | | 29 | | | | 16 | 5 | | | 61 | | | | 56 | | | | 45 | 5 | | | 74 | | | | 97 | | | | 85 | | | | 33 | | | | 25 | | | | |
* The Financial Statements presented herein reflect the historical operating results of the Madison Mosaic Funds through April 19, 2013. Effective after market close on this date, the Madison Mosaic Funds reorganized into the Madison Funds.
1 Prior to close of business on February 28, 2014, the Fund was known as the Equity Income Fund.
2 Class was launched on July 31, 2012.
3 Net investment income (loss) calculated excluding permanent tax adjustments to undistributed net investment income.
4 Total return without applicable sales charge.
5 Not annualized.
6 Annualized.
7 Portfolio turnover is calculated at the fund level and represents the entire fiscal year or period.
8 Amounts represent less than $0.005 per share.
9 Effective at the close of business on April 19, 2013, the fiscal year end of the fund changed to October 31. Disclosure represents 10 months of information.
See accompanying Notes to Financial Statements.
45
| Madison Funds | April 30, 2017 |
| |
| Financial Highlights for a Share of Beneficial Interest Outstanding |
| |
| |
| | | LARGE CAP VALUE FUND - continued |
| | | CLASS B | | | CLASS Y |
| | | Six Months
Ended 4/30/17
(unaudited) | | | Year Ended October 31, | | | Six Months
Ended 4/30/17
(unaudited) | | | Year Ended October 31, |
| | | | | | | | |
| | | | | 2016 | | | 2015 | | | 2014 | | | 2013 | | | 2012 | | | | | 2016 | | | 2015 | | | 2014 | | | 2013 | | | 2012 | |
| Net Asset Value at beginning of period | | $ | 15.09 | | | $ | 16.01 | | | $ | 18.84 | | | $ | 16.74 | | | $ | 13.74 | | | $ | 12.21 | | | $ | 15.48 | | | $ | 16.35 | | | $ | 19.20 | | | $ | 17.06 | | | $ | 14.01 | | | $ | 12.44 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income2 | | | (0.01 | ) | | | 0.06 | | | | (0.05 | ) | | | 0.04 | | | | 0.12 | | | | 0.16 | | | | 0.09 | | | | 0.26 | | | | 0.14 | | | | 0.19 | | | | 0.19 | | | | 0.22 | |
| Net realized and unrealized gain (loss) on investments | | | 1.28 | | | | 0.88 | | | | (0.09 | ) | | | 2.07 | | | | 2.98 | | | | 1.47 | | | | 1.29 | | | | 0.85 | | | | (0.11 | ) | | | 2.14 | | | | 3.10 | | | | 1.57 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total from investment operations | | | 1.27 | | | | 0.94 | | | | (0.14 | ) | | | 2.11 | | | | 3.10 | | | | 1.63 | | | | 1.38 | | | | 1.11 | | | | 0.03 | | | | 2.33 | | | | 3.29 | | | | 1.79 | |
| Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.06 | ) | | | (0.02 | ) | | | 0.00 | 6 | | | (0.01 | ) | | | (0.10 | ) | | | (0.10 | ) | | | (0.22 | ) | | | (0.14 | ) | | | (0.19 | ) | | | (0.19 | ) | | | (0.24 | ) | | | (0.22 | ) |
| Capital gains | | | (2.07 | ) | | | (1.84 | ) | | | (2.69 | ) | | | – | | | | – | | | | – | | | | (2.07 | ) | | | (1.84 | ) | | | (2.69 | ) | | | – | | | | – | | | | – | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total distributions | | | (2.13 | ) | | | (1.86 | ) | | | (2.69 | ) | | | (0.01 | ) | | | (0.10 | ) | | | (0.10 | ) | | | (2.29 | ) | | | (1.98 | ) | | | (2.88 | ) | | | (0.19 | ) | | | (0.24 | ) | | | (0.22 | ) |
| Net increase (decrease) in net asset value | | | (0.86 | ) | | | (0.92 | ) | | | (2.83 | ) | | | 2.10 | | | | 3.00 | | | | 1.53 | | | | (0.91 | ) | | | (0.87 | ) | | | (2.85 | ) | | | 2.14 | | | | 3.05 | | | | 1.57 | |
| Net Asset Value at end of period | | $ | 14.23 | | | $ | 15.09 | | | $ | 16.01 | | | $ | 18.84 | | | $ | 16.74 | | | $ | 13.74 | | | $ | 14.57 | | | $ | 15.48 | | | $ | 16.35 | | | $ | 19.20 | | | $ | 17.06 | | | $ | 14.01 | |
| Total Return (%)3 | | | 8.78 | 4 | | | 6.38 | | | | (1.49 | ) | | | 12.61 | | | | 22.69 | | | | 13.41 | | | | 9.39 | 4 | | | 7.44 | | | | (0.51 | ) | | | 13.74 | | | | 23.86 | | | | 14.64 | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 3,588 | | | $ | 3,586 | | | $ | 4,096 | | | $ | 4,867 | | | $ | 5,222 | | | $ | 5,768 | | | $ | 25,298 | | | $ | 36,721 | | | $ | 109,546 | | | $ | 128,456 | | | $ | 132,206 | | | $ | 84,545 | |
| Ratios of expenses to average net assets (%) | | | 1.91 | 5 | | | 1.92 | | | | 1.91 | | | | 1.91 | | | | 1.91 | | | | 1.91 | | | | 0.91 | 5 | | | 0.92 | | | | 0.91 | | | | 0.91 | | | | 0.91 | | | | 0.91 | |
| Ratio of net investment income (loss) to average net assets (%) | | | 0.02 | 5 | | | 0.27 | | | | (0.27 | ) | | | (0.06 | ) | | | 0.40 | | | | 0.79 | | | | 1.03 | 5 | | | 1.33 | | | | 0.73 | | | | 0.92 | | | | 1.33 | | | | 1.76 | |
| Portfolio turnover (%)7 | | | 45 | 4 | | | 74 | | | | 97 | | | | 85 | | | | 33 | | | | 25 | | | | 45 | 4 | | | 74 | | | | 97 | | | | 85 | | | | 33 | | | | 25 | |
| |
| |
| | | INVESTORS FUND* |
| | | CLASS A | | | CLASS Y | |
| | | Six Months
Ended 4/30/17
(unaudited) | | | Year Ended October 31, | | | Inception
to
10/31/131 | | | Six Months
Ended 4/30/17
(unaudited) | | | Year Ended October 31, | | | | Year Ended
December 31, | |
| | | | | | | | | | | | | | |
| | | | | 2016 | | | 2015 | | | 2014 | | | | | | | 2016 | | | 2015 | | | 2014 | | | 20138 | | | 2012 | | | 2011 | |
| Net Asset Value at beginning of period | | $ | 19.57 | | | $ | 21.30 | | | $ | 25.01 | | | $ | 22.49 | | | $ | 22.06 | | | $ | 19.62 | | | $ | 21.36 | | | $ | 25.07 | | | $ | 22.50 | | | $ | 18.56 | | | $ | 16.40 | | | $ | 16.55 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income2 | | | 0.02 | | | | (0.00 | )6,9 | | | 0.09 | | | | 0.03 | | | | – | | | | 0.05 | | | | 0.069 | | | | 0.16 | | | | 0.12 | | | | 0.10 | | | | 0.13 | | | | 0.15 | |
| Net realized and unrealized gain (loss) on investments | | | 2.27 | | | | 1.18 | | | | 1.06 | | | | 3.18 | | | | 0.43 | | | | 2.28 | | | | 1.17 | | | | 1.05 | | | | 3.15 | | | | 3.94 | | | | 2.17 | | | | (0.15 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total from investment operations | | | 2.29 | | | | 1.18 | | | | 1.15 | | | | 3.21 | | | | 0.43 | | | | 2.33 | | | | 1.23 | | | | 1.21 | | | | 3.27 | | | | 4.04 | | | | 2.30 | | | | – | |
| Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | – | | | | (0.12 | ) | | | (0.06 | ) | | | (0.01 | ) | | | – | | | | (0.05 | ) | | | (0.18 | ) | | | (0.12 | ) | | | (0.02 | ) | | | (0.10 | ) | | | (0.14 | ) | | | (0.15 | ) |
| Capital gains | | | (0.61 | ) | | | (2.79 | ) | | | (4.80 | ) | | | (0.68 | ) | | | – | | | | (0.61 | ) | | | (2.79 | ) | | | (4.80 | ) | | | (0.68 | ) | | | – | | | | – | | | | – | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total distributions | | | (0.61 | ) | | | (2.91 | ) | | | (4.86 | ) | | | (0.69 | ) | | | – | | | | (0.66 | ) | | | (2.97 | ) | | | (4.92 | ) | | | (0.70 | ) | | | (0.10 | ) | | | (0.14 | ) | | | (0.15 | ) |
| Net increase (decrease) in net asset value | | | 1.68 | | | | (1.73 | ) | | | (3.71 | ) | | | 2.52 | | | | 0.43 | | | | 1.67 | | | | (1.74 | ) | | | (3.71 | ) | | | 2.57 | | | | 3.94 | | | | 2.16 | | | | (0.15 | ) |
| Net Asset Value at end of period | | $ | 21.25 | | | $ | 19.57 | | | $ | 21.30 | | | $ | 25.01 | | | $ | 22.49 | | | $ | 21.29 | | | $ | 19.62 | | | $ | 21.36 | | | $ | 25.07 | | | $ | 22.50 | | | $ | 18.56 | | | $ | 16.40 | |
| Total Return (%)3 | | | 11.924 | | | | 6.46 | | | | 4.78 | | | | 14.55 | | | | 1.954 | | | | 12.094 | | | | 6.69 | | | | 5.07 | | | | 14.84 | | | | 21.784 | | | | 14.05 | | | | – | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 73,438 | | | $ | 67,479 | | | $ | 2,189 | | | $ | 1,340 | | | $ | 280 | | | $ | 211,098 | | | $ | 204,962 | | | $ | 109,506 | | | $ | 166,819 | | | $ | 196,164 | | | $ | 35,176 | | | $ | 36,339 | |
| Ratios of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Before reimbursement of expenses by Adviser (%) | | | 1.20 | 5 | | | 1.20 | | | | 1.31 | | | | 1.28 | | | | 1.20 | 5 | | | 0.95 | 5 | | | 0.98 | | | | 1.06 | | | | 1.02 | | | | 1.04 | 5 | | | 1.05 | | | | 0.99 | |
| After reimbursement of expenses by Adviser (%) | | | 1.20 | 5 | | | 1.20 | | | | 1.19 | | | | 1.13 | | | | 1.06 | 5 | | | 0.95 | 5 | | | 0.95 | | | | 0.94 | | | | 0.87 | | | | 0.89 | 5 | | | 0.97 | | | | 0.99 | |
| Ratio of net investment income to average net assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| After reimbursement of expenses by Adviser (%) | | | 0.23 | 5 | | | (0.01 | ) | | | 0.38 | | | | 0.15 | | | | (0.22 | )5 | | | 0.48 | 5 | | | 0.33 | | | | 0.62 | | | | 0.43 | | | | 0.41 | 5 | | | 0.75 | | | | 0.82 | |
| Portfolio turnover (%)7 | | | 14 | 4 | | | 27 | | | | 33 | | | | 52 | | | | 34 | 4 | | | 14 | 4 | | | 27 | | | | 33 | | | | 52 | | | | 34 | 4 | | | 47 | | | | 36 | |
* The Financial Statements presented herein reflect the historical operating results of the Madison Mosaic Funds through April 19, 2013. Effective after market close on this date, the Madison Mosaic Funds reorganized into the Madison Funds.
1 Class was launched on September 20, 2013.
2 Net investment income (loss) calculated excluding permanent tax adjustments to undistributed net investment income.
3 Total return without applicable sales charge.
4 Not annualized.
5 Annualized.
6 Amounts represent less than $0.005 per share.
7 Portfolio turnover is calculated at the fund level and represents the entire fiscal year or period.
8 Effective at the close of business on April 19, 2013, the fiscal year end of the fund changed to October 31. Disclosure represents 10 months of information.
9 Per share net investment income has been calculated using the average shares outstanding during the period.
See accompanying Notes to Financial Statements.
46
| Madison Funds | April 30, 2017 |
| |
| Financial Highlights for a Share of Beneficial Interest Outstanding |
| |
| | | | | | | INVESTORS FUND* - continued | | | | | | MID CAP FUND* |
| | | | | | | CLASS R6 | | | | | | CLASS A |
| | | | | | | Six Months
Ended 4/30/17
(unaudited) | | | | Year Ended October 31, | | | Inception
to
10/31/131 | | | | | | | Six Months
Ended 4/30/17
(unaudited) | | | Year Ended October 31, | | | Inception
to
10/31/137 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | 2016 | | | 2015 | | | 2014 | | | | | | | | | | | 2016 | | | 2015 | | | 2014 | | | |
| Net Asset Value at beginning of period | | | | | | $ | 19.74 | | | $ | 21.47 | | | $ | 25.14 | | | $ | 22.51 | | | $ | 22.06 | | | | | | | $ | 8.34 | | | $ | 8.59 | | | $ | 9.78 | | | $ | 9.48 | | | $ | 8.41 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income2 | | | | | | | 0.07 | | | | 0.11 | | | | 0.15 | | | | 0.17 | | | | – | | | | | | | | (0.02 | ) | | | (0.04 | ) | | | (0.06 | ) | | | (0.04 | ) | | | (0.03 | ) |
| Net realized and unrealized gain on investments | | | | | | | 2.28 | | | | 1.17 | | | | 1.10 | | | | 3.16 | | | | 0.45 | | | | | | | | 0.95 | | | | 0.29 | | | | 0.61 | | | | 1.01 | | | | 1.10 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total from investment operations | | | | | | | 2.35 | | | | 1.28 | | | | 1.25 | | | | 3.33 | | | | 0.45 | | | | | | | | 0.93 | | | | 0.25 | | | | 0.55 | | | | 0.97 | | | | 1.07 | |
| Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | | | | | (0.08 | ) | | | (0.22 | ) | | | (0.12 | ) | | | (0.02 | ) | | | – | | | | | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Capital gains | | | | | | | (0.61 | ) | | | (2.79 | ) | | | (4.80 | ) | | | (0.68 | ) | | | – | | | | | | | | (0.38 | ) | | | (0.50 | ) | | | (1.74 | ) | | | (0.67 | ) | | | – | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total distributions | | | | | | | (0.69 | ) | | | (3.01 | ) | | | (4.92 | ) | | | (0.70 | ) | | | – | | | | | | | | (0.38 | ) | | | (0.50 | ) | | | (1.74 | ) | | | (0.67 | ) | | | – | |
| Net increase (decrease) in net asset value | | | | | | | 1.66 | | | | (1.73 | ) | | | (3.67 | ) | | | 2.63 | | | | 0.45 | | | | | | | | 0.55 | | | | (0.25 | ) | | | (1.19 | ) | | | 0.30 | | | | 1.07 | |
| Net Asset Value at end of period | | | | | | $ | 21.40 | | | $ | 19.74 | | | $ | 21.47 | | | $ | 25.14 | | | $ | 22.51 | | | | | | | $ | 8.89 | | | $ | 8.34 | | | $ | 8.59 | | | $ | 9.78 | | | $ | 9.48 | |
| Total Return (%)3 | | | | | | | 12.17 | 4 | | | 6.92 | | | | 5.25 | | | | 15.10 | | | | 2.04 | 4 | | | | | | | 11.38 | 4 | | | 3.12 | | | | 5.80 | | | | 10.65 | | | | 12.72 | 5 |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | | | | | $ | 6,697 | | | $ | 6,198 | | | $ | 6,589 | | | $ | 5,200 | | | $ | 7,234 | | | | | | | $ | 57,843 | | | $ | 52,482 | | | $ | 54,000 | | | $ | 57,117 | | | $ | 56,578 | |
| Ratios of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Before reimbursement of expenses by Adviser (%) | | | | | | | 0.77 | 5 | | | 0.77 | | | | 0.73 | | | | 0.69 | | | | 0.65 | 5 | | | | | | | 1.40 | 5 | | | 1.41 | | | | 1.40 | | | | 1.40 | | | | 1.40 | 5 |
| After reimbursement of expenses by Adviser (%) | | | | | | | 0.77 | 5 | | | 0.77 | | | | 0.73 | | | | 0.64 | | | | 0.56 | 5 | | | | | | | 1.40 | 5 | | | 1.41 | | | | 1.40 | | | | 1.40 | | | | 1.40 | 5 |
| Ratio of net investment income (loss) to average net assets | | | | | | | | | | | | | | | �� | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| After reimbursement of expenses by Adviser (%) | | | | | | | 0.66 | 5 | | | 0.57 | | | | 0.83 | | | | 0.65 | | | | 0.23 | 5 | | | | | | | (0.59 | )5 | | | (0.47 | ) | | | (0.72 | ) | | | (0.42 | ) | | | (0.64 | )5 |
| Portfolio turnover (%)6 | | | | | | | 14 | 4 | | | 27 | | | | 33 | | | | 52 | | | | 34 | 4 | | | | | | | 13 | 4 | | | 27 | | | | 28 | | | | 33 | | | | 21 | 4 |
| | | MID CAP FUND* |
| | | CLASS B | | | CLASS Y |
| | | Six Months
Ended 4/30/17
(unaudited) | | | Year Ended October 31, | | | Inception
to
10/31/137 | | | Six Months
Ended 4/30/17
(unaudited) | | | Year Ended October 31, | | | Year Ended
December 31, | |
| | | | | | | | | | | | | |
| | | | | 2016 | | | 2015 | | | 2014 | | | | | | | 2016 | | | 2015 | | | 2014 | | | 20138 | | | 20129 | | | 20119 | |
| Net Asset Value at beginning of period | | $ | 7.04 | | | $ | 7.38 | | | $ | 8.69 | | | $ | 8.55 | | | $ | 7.62 | | | $ | 8.64 | | | $ | 8.85 | | | $ | 10.00 | | | $ | 9.66 | | | $ | 8.31 | | | $ | 7.45 | | | $ | 7.40 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss)2 | | | (0.08 | ) | | | (0.14 | ) | | | (0.13 | ) | | | (0.14 | ) | | | (0.06 | ) | | | (0.01 | ) | | | 0.00 | 10 | | | (0.04 | ) | | | (0.02 | ) | | | (0.02 | ) | | | – | | | | (0.01 | ) |
| Net realized and unrealized gain (loss) on investments | | | 0.82 | | | | 0.30 | | | | 0.56 | | | | 0.95 | | | | 0.99 | | | | 0.98 | | | | 0.29 | | | | 0.63 | | | | 1.03 | | | | 2.11 | | | | 1.17 | | | | 0.39 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total from investment operations | | | 0.74 | | | | 0.16 | | | | 0.43 | | | | 0.81 | | | | 0.93 | | | | 0.97 | | | | 0.29 | | | | 0.59 | | | | 1.01 | | | | 2.09 | | | | 1.17 | | | | 0.38 | |
| Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Capital gains | | | (0.38 | ) | | | (0.50 | ) | | | (1.74 | ) | | | (0.67 | ) | | | – | | �� | | (0.38 | ) | | | (0.50 | ) | | | (1.74 | ) | | | (0.67 | ) | | | (0.74 | ) | | | (0.31 | ) | | | (0.33 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total distributions | | | (0.38 | ) | | | (0.50 | ) | | | (1.74 | ) | | | (0.67 | ) | | | – | | | | (0.38 | ) | | | (0.50 | ) | | | (1.74 | ) | | | (0.67 | ) | | | (0.74 | ) | | | (0.31 | ) | | | (0.33 | ) |
| Net increase (decrease) in net asset value | | | 0.36 | | | | (0.34 | ) | | | (1.31 | ) | | | 0.14 | | | | 0.93 | | | | 0.59 | | | | (0.21 | ) | | | (1.15 | ) | | | 0.34 | | | | 1.35 | | | | 0.86 | | | | 0.05 | |
| Net Asset Value at end of period | | $ | 7.40 | | | $ | 7.04 | | | $ | 7.38 | | | $ | 8.69 | | | $ | 8.55 | | | $ | 9.23 | | | $ | 8.64 | | | $ | 8.85 | | | $ | 10.00 | | | $ | 9.66 | | | $ | 8.31 | | | $ | 7.45 | |
| Total Return (%)3 | | | 10.77 | 4 | | | 2.38 | | | | 5.06 | | | | 9.89 | | | | 12.20 | 4 | | | 11.45 | 4 | | | 3.50 | | | | 6.13 | | | | 10.88 | | | | 22.68 | 4 | | | 15.69 | | | | 5.10 | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 2,755 | | | $ | 2,832 | | | $ | 3,401 | | | $ | 4,235 | | | $ | 5,476 | | | $ | 265,738 | | | $ | 242,308 | | | $ | 198,605 | | | $ | 224,181 | | | $ | 255,263 | | | $ | 168,428 | | | $ | 160,328 | |
| Ratios of expenses to average net assets (%) | | | 2.15 | 5 | | | 2.16 | | | | 2.15 | | | | 2.15 | | | | 2.15 | 5 | | | 0.98 | 5 | | | 1.08 | | | | 1.15 | | | | 1.15 | | | | 1.15 | 5 | | | 1.20 | | | | 1.25 | |
| Ratio of net investment income (loss) to average net assets (%) | | | (1.34 | )5 | | | (1.23 | ) | | | (1.47 | ) | | | (1.19 | ) | | | (1.39 | )5 | | | (0.17 | )5 | | | (0.14 | ) | | | (0.47 | ) | | | (0.17 | ) | | | (0.29 | )5 | | | 0.00 | | | | (0.20 | ) |
| Portfolio turnover (%)6 | | | 13 | 4 | | | 27 | | | | 28 | | | | 33 | | | | 21 | 4 | | | 13 | 4 | | | 27 | | | | 28 | | | | 33 | | | | 21 | 4 | | | 28 | | | | 32 | |
* The Financial Statements presented herein reflect the historical operating results of the Madison Mosaic Funds through April 19, 2013. Effective after market close on this date, the Madison Mosaic Funds reorganized into the Madison Funds.
1 Class was launched on September 20, 2013.
2 Net investment income (loss) calculated excluding permanent tax adjustments to undistributed net investment income.
3 Total return without applicable sales charge.
4 Not annualized.
5 Annualized.
6 Portfolio turnover is calculated at the fund level and represents the entire fiscal year or period.
7 For accounting purposes, the Mid-Cap Fund Class A & B are treated as having commenced investment operations at the close of business on April 19, 2013.
8 Effective at the close of business on April 19, 2013, the fiscal year end of the fund changed to October 31. Disclosure represents 10 months of information.
9 The financial highlights prior to April 22, 2013 are those of the Madison Mosaic Mid Cap Fund, the accounting survivor of the reorganization of the Madison Mid Cap and Madison Mosaic Mid Cap Funds. The net asset values and other per share information of the Madison Mosaic Mid Cap Fund have been restated by the conversion ratio of 1.5634 for Class Y shares to reflect those of the legal survivor of the reorganization, the Madison Mosaic Mid Cap Fund, which was renamed the Madison Mid Cap Fund after reorganization.
10 Amounts represent less than $0.005 per share.
See accompanying Notes to Financial Statements.
47
| Madison Funds | April 30, 2017 |
| |
| Financial Highlights for a Share of Beneficial Interest Outstanding |
| |
| | | MID CAP FUND* - continued | | | SMALL CAP FUND |
| | | CLASS R6 | | | CLASS A |
| | | Six Months
Ended 4/30/17
(unaudited) | | | Year Ended October 31, | | | Year
Ended
12/31/122,3 | | | Six Months
Ended 4/30/17
(unaudited) | | | Year Ended October 31, |
| | | | | | | | |
| | | | | 2016 | | | 2015 | | | 2014 | | | 20131 | | | | | 2016 | | | 2015 | | | 2014 | | | 2013 | | | 2012 | |
| |
| Net Asset Value at beginning of period | | $ | 8.77 | | | $ | 8.95 | | | $ | 10.06 | | | $ | 9.68 | | | $ | 8.30 | | | $ | 7.42 | | | $ | 14.58 | | | $ | 14.98 | | | $ | 15.21 | | | $ | 14.87 | | | $ | 11.81 | | | $ | 10.79 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss)4 | | | (0.01 | ) | | | 0.02 | | | | (0.05 | ) | | | 0.02 | | | | 0.01 | | | | 0.08 | | | | 0.10 | | | | 0.04 | | | | 0.02 | | | | 0.06 | | | | 0.02 | | | | 0.06 | |
| Net realized and unrealized gain on investments | | | 1.01 | | | | 0.30 | | | | 0.68 | | | | 1.03 | | | | 2.11 | | | | 1.12 | | | | 2.45 | | | | 0.11 | | | | 0.58 | | | | 0.88 | | | | 3.68 | | | | 1.31 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total from investment operations | | | 1.00 | | | | 0.32 | | | | 0.63 | | | | 1.05 | | | | 2.12 | | | | 1.20 | | | | 2.55 | | | | 0.15 | | | | 0.60 | | | | 0.94 | | | | 3.70 | | | | 1.37 | |
| Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | – | | | | – | | | | – | | | | – | | | | – | | | | (0.01 | ) | | | (0.02 | ) | | | (0.02 | ) | | | (0.04 | ) | | | – | | | | (0.09 | ) | | | – | |
| Capital gains | | | (0.38 | ) | | | (0.50 | ) | | | (1.74 | ) | | | (0.67 | ) | | | (0.74 | ) | | | (0.31 | ) | | | (0.50 | ) | | | (0.53 | ) | | | (0.79 | ) | | | (0.60 | ) | | | (0.55 | ) | | | (0.35 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total distributions | | | (0.38 | ) | | | (0.50 | ) | | | (1.74 | ) | | | (0.67 | ) | | | (0.74 | ) | | | (0.32 | ) | | | (0.52 | ) | | | (0.55 | ) | | | (0.83 | ) | | | (0.60 | ) | | | (0.64 | ) | | | (0.35 | ) |
| Net increase (decrease) in net asset value | | | 0.62 | | | | (0.18 | ) | | | (1.11 | ) | | | 0.38 | | | | 1.38 | | | | 0.88 | | | | 2.03 | | | | (0.40 | ) | | | (0.23 | ) | | | 0.34 | | | | 3.06 | | | | 1.02 | |
| Net Asset Value at end of period | | $ | 9.39 | | | $ | 8.77 | | | $ | 8.95 | | | $ | 10.06 | | | $ | 9.68 | | | $ | 8.30 | | | $ | 16.61 | | | $ | 14.58 | | | $ | 14.98 | | | $ | 15.21 | | | $ | 14.87 | | | $ | 11.81 | |
| Total Return (%)5 | | | 11.63 | 6 | | | 3.81 | | | | 6.55 | | | | 11.29 | | | | 23.05 | 6 | | | 7.34 | 6 | | | 17.46 | 6 | | | 1.00 | | | | 3.90 | | | | 6.45 | | | | 32.85 | | | | 13.08 | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 11,068 | | | $ | 8,792 | | | $ | 9,874 | | | $ | 5,118 | | | $ | 6,270 | | | $ | 4,856 | | | $ | 3,897 | | | $ | 3,168 | | | $ | 3,435 | | | $ | 3,639 | | | $ | 4,566 | | | $ | 3,941 | |
| Ratios of expenses to average net assets (%) | | | 0.77 | 7 | | | 0.78 | | | | 0.77 | | | | 0.77 | | | | 0.77 | 7 | | | 0.76 | 7 | | | 1.50 | 7 | | | 1.51 | | | | 1.50 | | | | 1.50 | | | | 1.50 | | | | 1.50 | |
| Ratio of net investment income (loss) to average net assets (%) | | | 0.04 | 7 | | | 0.16 | | | | (0.09 | ) | | | 0.20 | | | | 0.11 | 7 | | | 1.19 | 7 | | | 1.34 | 7 | | | 0.24 | | | | 0.09 | | | | 0.35 | | | | 0.14 | | | | 0.53 | |
| Portfolio turnover (%)8 | | | 13 | 6 | | | 27 | | | | 28 | | | | 33 | | | | 21 | 6 | | | 28 | 6 | | | 11 | 6 | | | 19 | | | | 19 | | | | 29 | | | | 22 | | | | 15 | |
| |
| |
| |
| | | SMALL CAP FUND |
| | | CLASS B | | | CLASS Y |
| | | Six Months
Ended 4/30/17
(unaudited) | | | Year Ended October 31, | | | Six Months
Ended 4/30/17
(unaudited) | | | Year Ended October 31, |
| | | | | | | | |
| | | | | 2016 | | | 2015 | | | 2014 | | | 2013 | | | 2012 | | | | | 2016 | | | 2015 | | | 2014 | | | 2013 | | | 2012 | |
| Net Asset Value at beginning of period | | $ | 13.75 | | | $ | 14.25 | | | $ | 14.58 | | | $ | 14.38 | | | $ | 11.45 | | | $ | 10.55 | | | $ | 14.63 | | | $ | 15.03 | | | $ | 15.26 | | | $ | 14.88 | | | $ | 11.82 | | | $ | 10.77 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income (loss)1 | | | 0.05 | | | | (0.10 | ) | | | (0.14 | ) | | | (0.05 | ) | | | (0.06 | ) | | | (0.02 | ) | | | 0.13 | | | | 0.07 | | | | 0.04 | | | | 0.07 | | | | 0.02 | | | | 0.10 | |
| Net realized and unrealized gain on investments | | | 2.31 | | | | 0.13 | | | | 0.60 | | | | 0.85 | | | | 3.56 | | | | 1.27 | | | | 2.47 | | | | 0.10 | | | | 0.60 | | | | 0.91 | | | | 3.71 | | | | 1.30 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total from investment operations | | | 2.36 | | | | 0.03 | | | | 0.46 | | | | 0.80 | | | | 3.50 | | | | 1.25 | | | | 2.60 | | | | 0.17 | | | | 0.64 | | | | 0.98 | | | | 3.73 | | | | 1.40 | |
| Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | – | | | | – | | | | – | | | | – | | | | (0.02 | ) | | | – | | | | (0.07 | ) | | | (0.04 | ) | | | (0.08 | ) | | | (0.00 | )9 | | | (0.12 | ) | | | – | |
| Capital gains | | | (0.50 | ) | | | (0.53 | ) | | | (0.79 | ) | | | (0.60 | ) | | | (0.55 | ) | | | (0.35 | ) | | | (0.50 | ) | | | (0.53 | ) | | | (0.79 | ) | | | (0.60 | ) | | | (0.55 | ) | | | (0.35 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total distributions | | | (0.50 | ) | | | (0.53 | ) | | | (0.79 | ) | | | (0.60 | ) | | | (0.57 | ) | | | (0.35 | ) | | | (0.57 | ) | | | (0.57 | ) | | | (0.87 | ) | | | (0.60 | ) | | | (0.67 | ) | | | (0.35 | ) |
| Net increase (decrease) in net asset value | | | 1.86 | | | | (0.50 | ) | | | (0.33 | ) | | | 0.20 | | | | 2.93 | | | | 0.90 | | | | 2.03 | | | | (0.40 | ) | | | (0.23 | ) | | | 0.38 | | | | 3.06 | | | | 1.05 | |
| Net Asset Value at end of period | | $ | 15.61 | | | $ | 13.75 | | | $ | 14.25 | | | $ | 14.58 | | | $ | 14.38 | | | $ | 11.45 | | | $ | 16.66 | | | $ | 14.63 | | | $ | 15.03 | | | $ | 15.26 | | | $ | 14.88 | | | $ | 11.82 | |
| Total Return (%)3 | | | 17.11 | 6 | | | 0.21 | | | | 3.10 | | | | 5.66 | | | | 31.92 | | | | 12.21 | | | | 17.71 | 6 | | | 1.18 | | | | 4.16 | | | | 6.72 | | | | 33.17 | | | | 13.39 | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 456 | | | $ | 392 | | | $ | 437 | | | $ | 522 | | | $ | 497 | | | $ | 318 | | | $ | 103,585 | | | $ | 91,448 | | | $ | 83,728 | | | $ | 60,279 | | | $ | 45,217 | | | $ | 13,808 | |
| Ratios of expenses to average net assets (%) | | | 2.25 | 7 | | | 2.26 | | | | 2.25 | | | | 2.25 | | | | 2.25 | | | | 2.25 | | | | 1.25 | 7 | | | 1.26 | | | | 1.25 | | | | 1.25 | | | | 1.25 | | | | 1.25 | |
| Ratio of net investment income (loss) to average net assets (%) | | | 0.54 | 7 | | | (0.51 | ) | | | (0.66 | ) | | | (0.40 | ) | | | (0.62 | ) | | | (0.22 | ) | | | 1.57 | 7 | | | 0.49 | | | | 0.32 | | | | 0.59 | | | | 0.28 | | | | 0.77 | |
| Portfolio turnover (%)6 | | | 11 | 6 | | | 19 | | | | 19 | | | | 29 | | | | 22 | | | | 15 | | | | 11 | 6 | | | 19 | | | | 19 | | | | 29 | | | | 22 | | | | 15 | |
*The Financial Statements presented herein include the historical operating results of the Madison Mosaic Funds through April 19, 2013. Effective after market close on this date, the Madison Mosaic Funds reorganized into the Madison Funds.
1 Effective at the close of business on April 19, 2013, the fiscal year end of the fund changed to October 31. Disclosure represents 10 months of information.
2 The financial highlights prior to April 22, 2013 are those of the Madison Mosaic Mid Cap Fund, the accounting survivor of the reorganization of the Madison Mid Cap and Madison Mosaic Mid Cap Funds. The net asset values and other per share information of the Madison Mosaic Mid Cap Fund have been restated by the conversion ratio of 1.5634 for Class Y shares and 1.5696 for Class R6 shares to reflect those of the legal survivor of the reorganization, the Madison Mosaic Mid Cap Fund, which was renamed the Madison Mid Cap Fund after reorganization.
3 Class was launched on February 29, 2012.
4 Net investment income (loss) calculated excluding permanent tax adjustments to undistributed net investment income.
5 Total return without applicable sales charge.
6 Not annualized.
7 Annualized.
8 Portfolio turnover is calculated at the fund level and represents the entire fiscal year or period.
9 Amounts represent less than $0.005 per share.
See accompanying Notes to Financial Statements.
48
| Madison Funds | April 30, 2017 |
| |
| Financial Highlights for a Share of Beneficial Interest Outstanding |
| |
| | | INTERNATIONAL STOCK FUND |
| | | CLASS A | | | CLASS B |
| | | Six Months
Ended 4/30/17
(unaudited) | | | Year Ended October 31, | | | Six Months
Ended 4/30/17
(unaudited) | | | Year Ended October 31, |
| | | | | | | | |
| | | | | 2016 | | | 2015 | | | 2014 | | | 2013 | | | 2012 | | | | | 2016 | | | 2015 | | | 2014 | | | 2013 | | | 2012 | |
| Net Asset Value at beginning of period | | $ | 12.03 | | | $ | 12.99 | | | $ | 13.20 | | | $ | 13.16 | | | $ | 10.81 | | | $ | 10.12 | | | $ | 11.73 | | | $ | 12.68 | | | $ | 12.89 | | | $ | 12.87 | | | $ | 10.58 | | | $ | 9.92 | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income1 | | | 0.06 | | | | 0.12 | | | | 0.12 | | | | 0.16 | | | | 0.13 | | | | 0.14 | | | | 0.02 | | | | 0.03 | | | | 0.03 | | | | 0.10 | | | | 0.07 | | | | 0.09 | |
| Net realized and unrealized gain (loss) on investments | | | 0.87 | | | | (0.97 | ) | | | (0.02 | ) | | | (0.02 | ) | | | 2.35 | | | | 0.76 | | | | 0.85 | | | | (0.95 | ) | | | (0.03 | ) | | | (0.06 | ) | | | 2.28 | | | | 0.72 | |
| Total from investment operations | | | 0.93 | | | | (0.85 | ) | | | 0.10 | | | | 0.14 | | | | 2.48 | | | | 0.90 | | | | 0.87 | | | | (0.92 | ) | | | – | | | | 0.04 | | | | 2.35 | | | | 0.81 | |
| Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.14 | ) | | | (0.11 | ) | | | (0.31 | ) | | | (0.10 | ) | | | (0.13 | ) | | | (0.21 | ) | | | (0.07 | ) | | | (0.03 | ) | | | (0.21 | ) | | | (0.02 | ) | | | (0.06 | ) | | | (0.15 | ) |
| Total distributions | | | (0.14 | ) | | | (0.11 | ) | | | (0.31 | ) | | | (0.10 | ) | | | (0.13 | ) | | | (0.21 | ) | | | (0.07 | ) | | | (0.03 | ) | | | (0.21 | ) | | | (0.02 | ) | | | (0.06 | ) | | | (0.15 | ) |
| Net increase (decrease) in net asset value | | | 0.79 | | | | (0.96 | ) | | | (0.21 | ) | | | 0.04 | | | | 2.35 | | | | 0.69 | | | | 0.80 | | | | (0.95 | ) | | | (0.21 | ) | | | 0.02 | | | | 2.29 | | | | 0.66 | |
| Net Asset Value at end of period | | $ | 12.82 | | | $ | 12.03 | | | $ | 12.99 | | | $ | 13.20 | | | $ | 13.16 | | | $ | 10.81 | | | $ | 12.53 | | | $ | 11.73 | | | $ | 12.68 | | | $ | 12.89 | | | $ | 12.87 | | | $ | 10.58 | |
| Total Return (%)2 | | | 7.873 | | | | (6.60 | ) | | | 0.83 | | | | 1.09 | | | | 23.11 | | | | 9.23 | | | | 7.453 | | | | (7.27 | ) | | | 0.06 | | | | 0.31 | | | | 22.26 | | | | 8.39 | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 19,298 | | | $ | 18,573 | | | $ | 21,072 | | | $ | 23,012 | | | $ | 24,571 | | | $ | 21,002 | | | $ | 1,173 | | | $ | 1,288 | | | $ | 1,692 | | | $ | 2,061 | | | $ | 2,946 | | | $ | 3,206 | |
| Ratios of expenses to average net assets (%) | | | 1.614 | | | | 1.61 | | | | 1.60 | | | | 1.60 | | | | 1.60 | | | | 1.60 | | | | 2.364 | | | | 2.36 | | | | 2.35 | | | | 2.35 | | | | 2.35 | | | | 2.35 | |
| Ratio of net investment income to average net assets (%) | | | 1.114 | | | | 1.00 | | | | 0.88 | | | | 1.13 | | | | 1.02 | | | | 1.35 | | | | 0.294 | | | | 0.21 | | | | 0.10 | | | | 0.29 | | | | 0.28 | | | | 0.59 | |
| Portfolio turnover (%)5 | | | 193 | | | | 34 | | | | 45 | | | | 44 | | | | 53 | | | | 41 | | | | 193 | | | | 34 | | | | 45 | | | | 44 | | | | 53 | | | | 41 | |
| |
| |
| | | CLASS Y | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months
Ended 4/30/17
(unaudited) | | | Year Ended October 31, | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | 2016 | | | 2015 | | | 2014 | | | 2013 | | | 2012 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value at beginning of period | | $ | 12.05 | | | $ | 13.00 | | | $ | 13.22 | | | $ | 13.18 | | | $ | 10.82 | | | $ | 10.13 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income1 | | | 0.19 | | | | 0.14 | | | | (0.05 | ) | | | 0.73 | | | | 0.13 | | | | 0.18 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net realized and unrealized gain (loss) on investments | | | 0.77 | | | | (0.95 | ) | | | 0.17 | | | | (0.56 | ) | | | 2.38 | | | | 0.75 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total from investment operations | | | 0.96 | | | | (0.81 | ) | | | 0.12 | | | | 0.17 | | | | 2.51 | | | | 0.93 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net investment income | | | (0.17 | ) | | | (0.14 | ) | | | (0.34 | ) | | | (0.13 | ) | | | (0.15 | ) | | | (0.24 | ) | | | | | | | | | | | | | | | | | | | | | | | | |
| Total distributions | | | (0.17 | ) | | | (0.14 | ) | | | (0.34 | ) | | | (0.13 | ) | | | (0.15 | ) | | | (0.24 | ) | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net asset value | | | 0.79 | | | | (0.95 | ) | | | (0.22 | ) | | | 0.04 | | | | 2.36 | | | | 0.69 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value at end of period | | $ | 12.84 | | | $ | 12.05 | | | $ | 13.00 | | | $ | 13.22 | | | $ | 13.18 | | | $ | 10.82 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Return (%)2 | | | 8.08 | 3 | | | (6.40 | ) | | | 1.09 | | | | 1.29 | | | | 23.44 | | | | 9.61 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 12,002 | | | $ | 15,398 | | | $ | 15,566 | | | $ | 7,938 | | | $ | 34,634 | | | $ | 23,294 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ratios of expenses to average net assets (%) | | | 1.36 | 4 | | | 1.36 | | | | 1.35 | | | | 1.35 | | | | 1.35 | | | | 1.35 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ratio of net investment income to average net assets (%) | | | 1.30 | 4 | | | 1.21 | | | | 1.27 | | | | 1.65 | | | | 1.26 | | | | 1.36 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Portfolio turnover (%)5 | | | 19 | 3 | | | 34 | | | | 45 | | | | 44 | | | | 53 | | | | 41 | | | | | | | | | | | | | | | | | | | | | | | | | |
1 Net investment income (loss) calculated excluding permanent tax adjustments to undistributed net investment income.
2 Total return without applicable sales charge.
3 Not annualized.
4 Annualized.
5 Portfolio turnover is calculated at the fund level and represents the entire fiscal year or period.
See accompanying Notes to Financial Statements.
49
Madison Funds | April 30, 2017
| |
| Notes to the Financial Statements (unaudited) |
1. ORGANIZATION
Madison Funds, a Delaware business trust (the “Trust”), is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a diversified, open-end, management investment company. As of the date of this report, the Trust offers eighteen funds (individually, a “Fund,” collectively, the “Funds”).
The Declaration of Trust permits the Trustees to issue an unlimited number of shares of beneficial interest of the Trust without par value. The Trust has entered into an Investment Advisory Agreement with Madison Asset Management, LLC (the “Investment Adviser” or “Madison”). The Investment Adviser, in turn, has entered into subadvisory agreements with certain subadvisers (“Subadvisers”) for the management of the investments of the Small Cap Fund and International Stock Fund.
The accompanying financial statements include the Government Money Market (formerly known as Cash Reserves), Tax-Free Virginia, Tax-Free National, High Quality Bond, Core Bond, Corporate Bond, High Income, Diversified Income, Covered Call & Equity Income, Dividend Income, Large Cap Value, Investors, Mid Cap, Small Cap and International Stock (collectively, the “Core Funds”), the Conservative Allocation, Moderate Allocation, and Aggressive Allocation Funds (collectively, the “Allocation Funds”).
The Government Money Market Fund offers two classes of shares: Class A and B. The High Income, Large Cap Value, Small Cap, and International Stock Funds offer three classes of shares: Class A, B and Y. The Diversified Income Fund and Allocation Funds offer three classes of shares: Class A, B and C. The Investors Fund offers three classes of shares: Class A, Y and R6. The Core Bond Fund and Mid Cap Fund offer four classes of shares: Class A, B, Y and R6. The Covered Call & Equity Income Fund offers four classes of shares: Class A, C, Y and R6. The Tax-Free Virginia, Tax-Free National, High Quality Bond, Corporate Bond and Dividend Income offer one class of shares: Class Y. Each class of shares represents an interest in the assets of the respective Fund and has identical voting, dividend, liquidation and other rights, except that each class of shares bears its own distribution fees and servicing fees, if any, and its proportional share of Fund level expenses, is subject to its own sales charges, if any, and has exclusive voting rights on matters pertaining to Rule 12b-1 of the 1940 Act as it relates to that class and other class-specific matters.
As of February 1, 2017 Class B shares of the Funds are no longer available for purchase.
2. SIGNIFICANT ACCOUNTING POLICIES
The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reported period. Actual results could differ from those estimates.
The following is a summary of significant accounting policies consistently followed by each Fund in the preparation of its financial statements.
Portfolio Valuation: Equity securities, including American Depositary Receipts (“ADRs”), Global Depositary Receipts (“GDRs”) and exchange-traded funds (“ETFs”) listed on any U.S. or foreign stock exchange or quoted on the National Association of Securities Dealers Automated Quotation System (“NASDAQ”) are valued at the last quoted sale price or official closing price on that exchange or NASDAQ on the valuation day (provided that, for securities traded on NASDAQ, the Funds utilize the NASDAQ Official Closing Price (“NOCP”)). If no sale occurs, equities traded on a U.S. exchange, foreign exchange or on NASDAQ are valued at the bid price. Debt securities purchased (other than short-term obligations) with a remaining maturity of 61 days or more are valued on the basis of last available bid prices or current market quotations provided by dealers or pricing services approved by the Trust. In determining the value of a particular investment, pricing services may use certain information with respect to transactions in such investments, quotations from dealers, pricing matrixes, market transactions in comparable investments, various relationships observed in the market between investments and calculated yield measurements based on valuation technology commonly employed in the market for such investments.
Municipal debt securities are traded via a network of dealers and brokers that connect buyers and sellers. Liquidity in the tax-exempt market is influenced by economic conditions, issuer financial strength, bond structure, trade size, supply and demand, tax code and regulatory environment. There may be little trading in the secondary market for particular bonds and other debt securities, making them more difficult to value or sell. Asset-backed and mortgage-backed securities are valued by independent pricing services using models that consider estimated cash flows of each tranche of the security, establish a benchmark yield and develop an estimated tranche specific spread to the benchmark yield based on the unique attributes of the tranche.
Investments in shares of open-end mutual funds, including money market funds, are valued at their daily net asset value (“NAV”) which is calculated as of the close of regular trading on the New York Stock Exchange (the “NYSE”), usually 4:00 p.m. Eastern Standard Time), on each day on which the NYSE is open for business. NAV per share is determined by dividing each Fund’s total net assets by the number of shares of such Fund outstanding at the time of calculation. Because the assets of each Allocation Fund consist primarily of shares of other registered investment companies (the “Underlying Funds”), the NAV of each Fund is determined based on the NAVs of the Underlying Funds. Total net assets are determined by adding the total current value of portfolio securities, cash, receivables, and other assets and subtracting liabilities. Short-term instruments having maturities of 60 days or less and all securities in the Government Money Market Fund are valued on an amortized cost basis, which approximates market value.
Over-the-counter securities not listed or traded on NASDAQ are valued at the last sale price on the valuation day. If no sale occurs on the valuation day, an over-the-counter security is valued at the last bid price. Exchange-traded options are valued at the mean of the best bid and ask prices across all option exchanges. Financial futures contracts generally are valued at the settlement price established by the exchange(s) on which the contracts are primarily traded. Spot and forward foreign currency exchange contracts are valued based on quotations supplied by dealers in such contracts. Overnight repurchase agreements are valued at cost, and term repurchase agreements (i.e., those whose maturity exceeds seven days), swaps, caps, collars and floors, if any, are valued at the average of the closing bids obtained daily from at least one dealer.
Through the end of this reporting period, the value of all assets and liabilities expressed in foreign currencies was converted into U.S. dollar values using the then-current exchange rate at the close of regular trading on the NYSE.
All other securities for which either quotations are not readily available, no other sales have occurred, or in the Investment Adviser’s opinion, do not reflect the current market value, are appraised at their fair values as determined in good faith by the Pricing Committee (the “Committee”) and under the general supervision of the Board. When fair value pricing of securities is employed, the prices of securities used by the Funds to calculate NAV may differ from market quotations or NOCP. Because the Allocation Funds primarily invest in Underlying Funds, government securities and short-term paper, it is not anticipated that the Investment Adviser will need to “fair value” any of the investments of these Funds. However, an Underlying Fund may
Madison Funds | Notes to the Financial Statements (unaudited) - continued | April 30, 2017
need to “fair value” one or more of its investments, which may, in turn, require an Allocation Fund to do the same because of delays in obtaining the Underlying Fund’s NAV.
A Fund’s investments (or Underlying Fund) will be valued at fair value if, in the judgment of the Committee, an event impacting the value of an investment occurred between the closing time of a security’s primary market or exchange (for example, a foreign exchange or market) and the time the Fund’s share price is calculated as of the close of regular trading on the NYSE. Significant events may include, but are not limited to, the following: (1) significant fluctuations in domestic markets, foreign markets or foreign currencies; (2) occurrences not directly tied to the securities markets such as natural disasters, armed conflicts or significant government actions; and (3) major announcements affecting a single issuer or an entire market or market sector. In responding to a significant event, the Committee would determine the fair value of affected securities considering factors including, but not limited to: fundamental analytical data relating to the investment; the nature and duration of any restrictions on the disposition of the investment; and the forces influencing the market(s) in which the investment is purchased or sold. The Committee may rely on an independent fair valuation service to adjust the valuations of foreign equity securities based on specific market-movement parameters established by the Committee and approved by the Trust.
Recently Issued Accounting Pronouncements: In October 2016, the U.S. Securities and Exchange Commission adopted new rules and amended existing rules (together, “final rules”) intended to modernize the reporting and disclosure of information by registered investment companies. In part, the final rules amend Regulation S-X and require standardized, enhanced disclosure about derivatives in investment company financial statements, as well as other amendments. The compliance date for the amendments to Regulation S-X is August 1, 2017. Management is currently evaluating the impact that the adoption of the amendments to Regulation S-X will have on the Fund’s financial statements and related disclosures.
Security Transactions and Investment Income: Security transactions are accounted for on a trade date basis. Net realized gains or losses on sales are determined by the identified cost method. Dividend income is recorded on ex-dividend date, except that certain dividends from foreign securities may be recorded after the ex-dividend date based on when the Fund is informed of the dividend. Interest income is recorded on an accrual basis and is increased by the accretion of discount and decreased by the amortization of premium. Amortization and accretion are recorded on the effective yield method.
Expenses: Expenses that are directly related to one Fund are charged directly to that Fund. Other operating expenses are prorated to the Funds on the basis of relative net assets. Class-specific expenses are borne by that class.
Classes: Income and realized and unrealized gains/losses are allocated to the respective classes on the basis of relative net assets.
Repurchase Agreements: Each Fund may engage in repurchase agreements. In a repurchase agreement, a security is purchased for a relatively short period (usually not more than seven days) subject to the obligation to sell it back to the issuer at a fixed time and price plus accrued interest. The Funds will enter into repurchase agreements only with members of the Federal Reserve System and with “primary dealers” in U.S. Government securities. As of April 30, 2017, none of the Funds held open repurchase agreements.
The Trust has established a procedure providing that the securities serving as collateral for each repurchase agreement must be delivered to the Funds’ custodian either physically or in book-entry form and that the collateral must be marked to market daily to ensure that each repurchase agreement is fully collateralized at all times. In the event of bankruptcy or other default by a seller of a repurchase agreement, a Fund could experience one of the following: delays in liquidating the underlying securities during the period in which the Fund seeks to enforce its rights thereto, possible decreased levels of income, declines in value of the underlying securities, or lack of access to income during this period and the expense of enforcing its rights.
Foreign Currency Transactions: The Trust’s books and records are maintained in U.S. dollars. Foreign currency-denominated transactions (i.e., market value of investment securities, assets and liabilities, purchases and sales of investment securities, and income and expenses) are translated into U.S. dollars at the current rate of exchange. The Funds enter into contracts on the trade date to settle any securities transactions denominated in foreign currencies on behalf of the Funds at the spot rate at settlement.
Each Fund, except the Government Money Market and the Tax-Free Funds, reports certain foreign currency-related transactions as components of realized gains or losses for financial reporting purposes, whereas such components are treated as ordinary income for federal income tax purposes. Realized gains or losses associated with currency transactions are included in the Statements of Operations under the heading “Net realized gain (loss) on investments. As of April 30, 2017, none of the Funds had foreign currency transactions.
The Funds do not isolate the portion of gains and losses on investments in securities that is due to changes in the foreign exchange rates from that which is due to change in market prices of securities. Such amounts are categorized as gain or loss on investments for financial reporting purposes.
Forward Foreign Currency Exchange Contracts: Each Fund, except the Government Money Market Fund and the Tax-Free Funds, may purchase and sell forward foreign currency exchange contracts for defensive or hedging purposes. When entering into forward foreign currency exchange contracts, the Funds agree to receive or deliver a fixed quantity of foreign currency for an agreed-upon price on an agreed future date. These contracts are valued daily. The Funds’ net assets reflect unrealized gains or losses on the contracts as measured by the difference between the forward foreign currency exchange rates at the dates of entry into the contracts and the forward rates at the reporting date. The Funds realize a gain or a loss at the time the forward foreign currency exchange contracts are settled or closed out with an offsetting contract. Contracts are traded over-the-counter directly with a counterparty. Realized and unrealized gains and losses are included in the Statements of Operations. As of April 30, 2017, none of the Funds had open forward foreign currency exchange contracts.
If a Fund enters into a forward foreign currency exchange contract to buy foreign currency for any purpose, the Fund will be required to place cash or other liquid assets in a segregated account with the Fund’s custodian in an amount equal to the value of the Fund’s total assets committed to the consummation of the forward contract. If the value of the securities in the segregated account declines, additional cash or securities will be placed in the segregated account so that the value of the account will equal the amount of the Fund’s commitment with respect to the contract.
Cash Concentration: At times, the Funds maintain cash balances at financial institutions in excess of federally insured limits. The Funds monitor this credit risk and have not experienced any losses related to this risk.
Illiquid Securities: Each Fund currently limits investments in illiquid securities to 15% of net assets at the time of purchase. An illiquid security is generally defined as any investment that may be difficult to sell within seven days for the price at which the Fund values it. At April 30, 2017, there were no illiquid securities held in the Funds. Pursuant to guidelines adopted by the Board of Trustees, certain unregistered securities are determined to be liquid and are not included within the percent limitations specified above.
Madison Funds | Notes to the Financial Statements (unaudited) - continued | April 30, 2017
Delayed Delivery Securities: Each Fund may purchase securities on a when-issued or delayed delivery basis. “When-issued” refers to securities whose terms are available and for which a market exists, but that have not been issued. For when-issued or delayed delivery transactions, no payment is made until delivery date, which is typically longer than the normal course of settlement. When a Fund enters into an agreement to purchase securities on a when-issued or delayed delivery basis, the Fund segregates cash or other liquid securities, of any type or maturity, equal in value to the Fund’s commitment. Losses may arise due to changes in the market value of the underlying securities, if the counterparty does not perform under the contract, or if the issuer does not issue the securities due to political, economic or other factors. As of April 30, 2017, Core Bond Fund, Diversified Income Fund and High Income Fund had entered into such transactions, the market values of which are identified in the Fund’s Portfolio of Investments.
Indemnifications: Under the Funds’ organizational documents, the Funds’ officers and Trustees are indemnified against certain liabilities arising out of the performance of their duties to the Funds. In the normal course of business, the Funds enter into contracts that contain a variety of representations and provide general indemnifications. The Funds’ maximum liability exposure under these arrangements is unknown, as future claims that have not yet occurred may be made against the Funds. However, based on experience, management expects the risk of loss to be remote.
Fair Value Measurements: Each Fund has adopted Financial Accounting Standards Board (the “FASB”) guidance on fair value measurements. Fair value is defined as the price that each fund would receive upon selling an investment in a timely transaction to an independent buyer in the principal or most advantageous market of the investment. A three-tier hierarchy is used to maximize the use of observable market data “inputs” and minimize the use of unobservable “inputs” and to establish classification of fair value measurements for disclosure purposes. Inputs refer broadly to the assumptions that market participants would use in pricing the asset or liability, including assumptions about risk (for example, the risk inherent in a particular valuation technique used to measure fair value including such a pricing model and/or the risk inherent in the inputs used in the valuation technique). Inputs may be observable or unobservable.
Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The three-tier hierarchy of inputs is summarized in the three broad Levels listed below:
Level 1 – unadjusted quoted prices in active markets for identical investments
Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rate volatilities, prepayment speeds, credit risk, benchmark yields, transactions, bids, offers, new issues, spreads, and other relationships observed in the markets among comparable securities, underlying equity of the issuer; and proprietary pricing models such as yield measures calculated using factors such as cash flows, financial or collateral performance, and other reference data, etc.)
Level 3 – significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
The valuation techniques used by the Funds to measure fair value for the period ended April 30, 2017, maximized the use of observable inputs and minimized the use of unobservable inputs. The Funds utilized the following fair value techniques: multi-dimensional relational pricing model and option adjusted spread pricing; the Funds estimated the price that would have prevailed in a liquid market for an international equity security given information available at the time of valuation. As of April 30, 2017, none of the Funds held securities deemed as a Level 3, and there were no transfers between classification levels.
The following is a summary of the inputs used as of April 30, 2017, in valuing the Funds’ investments carried at fair value (please see the Portfolio of Investments for each Fund for a listing of all securities within each category):
Fund1 | | Quoted Prices In
Active Markets
for Identical
Investments
(Level 1) | | Significant
Other
Observable
Inputs
(Level 2) | |
Significant
Unobservable
Inputs
(Level 3) | | |
Value at
4/30/17 |
| Conservative Allocation | | $ | 73,062,238 | | | $ | – | | | $ | – | | | $ | 73,062,238 |
| Moderate Allocation | | | 144,347,222 | | | | – | | | | – | | | | 144,347,222 |
| Aggressive Allocation | | | 62,345,923 | | | | – | | | | – | | | | 62,345,923 |
| Government Money Market2 | | | 584,973 | | | | 15,056,115 | | | | – | | | | 15,641,088 |
| Tax-Free Virginia | | | | | | | | | | | | | | | |
Municipal Bonds | | | – | | | | 21,585,360 | | | | – | | | | 21,585,360 |
| Tax-Free National | | | | | | | | | | | | | | | |
Municipal Bonds | | | – | | | | 25,361,803 | | | | – | | | | 25,361,803 |
| High Quality Bond | | | | | | | | | | | | | | | |
Corporate Notes and Bonds | | | – | | | | 38,800,166 | | | | – | | | | 38,800,166 |
U.S. Government and Agency Obligations | | | – | | | | 57,910,355 | | | | – | | | | 57,910,355 |
Short-Term Investments | | | 2,809,088 | | | | – | | | | – | | | | 2,809,088 |
| | | | | | | | | | | | |
| | | | 2,809,088 | | | | 96,710,521 | | | | – | | | | 99,519,609 |
| Core Bond | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | |
Asset Backed Securities | | | – | | | | 6,475,996 | | | | – | | | | 6,475,996 |
Collateralized Mortgage Obligations | | | – | | | | 6,059,674 | | | | – | | | | 6,059,674 |
Commercial Mortgage-Backed Securities | | | – | | | | 6,179,772 | | | | – | | | | 6,179,772 |
Corporate Notes and Bonds | | | – | | | | 73,139,033 | | | | – | | | | 73,139,033 |
Long Term Municipal Bonds | | | – | | | | 17,127,753 | | | | – | | | | 17,127,753 |
Mortgage Backed Securities | | | – | | | | 47,470,572 | | | | – | | | | 47,470,572 |
U.S. Government and Agency Obligations | | | – | | | | 47,441,476 | | | | – | | | | 47,441,476 |
Put Options Purchased | | | 10,547 | | | | – | | | | – | | | | 10,547 |
Short-Term Investments | | | 3,527,962 | | | | – | | | | – | | | | 3,527,962 |
| | | | | | | | | | | | |
| | | | 3,538,509 | | | | 203,894,276 | | | | – | | | | 207,432,785 |
Liabilities | | | | | | | | | | | | | | | |
Call Options Written | | | 8,594 | | | | – | | | | – | | | | 8,594 |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| Corporate Bond | | | | | | | | | | | | | | | |
Corporate Notes and Bonds | | | – | | | | 20,582,738 | | | | – | | | | 20,582,738 |
Long Term Municipal Bonds | | | – | | | | 652,238 | | | | – | | | | 652,238 |
Short-Term Investments | | | 171,335 | | | | – | | | | – | | | | 171,335 |
| | | | | | | | | | | | |
| | | | 171,335 | | | | 21,234,976 | | | | – | | | | 21,406,311 |
| | | | | | | | | | | | | | | | |
| High Income | | | | | | | | | | | | | | | |
Corporate Notes and Bonds | | | – | | | | 19,842,485 | | | | – | | | | 19,842,485 |
Mutual Funds | | | 625,000 | | | | – | | | | – | | | | 625,000 |
Short-Term Investments | | | 2,400,940 | | | | – | | | | – | | | | 2,400,940 |
| | | | | | | | | | | | |
| | | | 3,025,940 | �� | | | 19,842,485 | | | | – | | | | 22,868,425 |
| | | | | | | | | | | | | | | | |
| Diversified Income | | | | | | | | | | | | | | | |
Common Stocks | | | 93,909,312 | | | | – | | | | – | | | | 93,909,312 |
Asset Backed Securities | | | – | | | | 1,812,589 | | | | – | | | | 1,812,589 |
Collateralized Mortgage Obligations | | | – | | | | 1,803,696 | | | | – | | | | 1,803,696 |
Commercial Mortgage-Backed Securities | | | – | | | | 993,476 | | | | – | | | | 993,476 |
Corporate Notes and Bonds | | | – | | | | 21,282,683 | | | | – | | | | 21,282,683 |
Long Term Municipal Bonds | | | – | | | | 3,835,219 | | | | – | | | | 3,835,219 |
Mortgage Backed Securities | | | – | | | | 14,024,051 | | | | – | | | | 14,024,051 |
U.S. Government and Agency Obligations | | | – | | | | 16,579,513 | | | | – | | | | 16,579,513 |
Short-Term Investments | | | 4,478,125 | | | | – | | | | – | | | | 4,478,125 |
| | | | | | | | | | | | |
| | | | 98,387,437 | | | | 60,331,227 | | | | – | | | | 158,718,664 |
Madison Funds | Notes to the Financial Statements (unaudited) - continued | April 30, 2017
Fund1 | | Quoted Prices In
Active Markets
for Identical
Investments
(Level 1) | | Significant
Other
Observable
Inputs
(Level 2) | |
Significant
Unobservable
Inputs
(Level 3) | | |
Value at
4/30/17 |
| Covered Call & Equity Income | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | |
Common Stocks | | $ | 91,337,870 | | | $ | – | | | $ | – | | | $ | 91,337,870 |
Exchange Traded Funds | | | 8,136,135 | | | | – | | | | – | | | | 8,136,135 |
Short-Term Investments | | | 23,214,515 | | | | – | | | | – | | | | 23,214,515 |
U.S. Government and Agency Obligations | | | – | | | | 4,993,715 | | | | – | | | | 4,993,715 |
| | | | | | | | | | | | |
| | | | 122,688,520 | | | | 4,993,715 | | | | – | | | | 127,682,235 |
Liabilities: | | | | | | | | | | | | | | | |
Options Written | | | 2,209,607 | | | | – | | | | – | | | | 2,209,607 |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Dividend Income | | | | | | | | | | | | | | | |
Common Stocks | | | 101,147,004 | | | | – | | | | – | | | | 101,147,004 |
Short-Term Investments | | | 2,072,068 | | | | – | | | | – | | | | 2,072,068 |
| | | | | | | | | | | | |
| | | | 103,219,072 | | | | – | | | | – | | | | 103,219,072 |
Large Cap Value | | | | | | | | | | | | | | | |
Common Stocks | | | 93,830,756 | | | | – | | | | – | | | | 93,830,756 |
Short-Term Investments | | | 1,442,327 | | | | – | | | | – | | | | 1,442,327 |
| | | | | | | | | | | | |
| | | | 95,273,083 | | | | – | | | | – | | | | 95,273,083 |
Investors | | | | | | | | | | | | | | | |
Common Stocks | | | 267,223,298 | | | | – | | | | – | | | | 267,223,298 |
Short-Term Investments | | | 23,074,706 | | | | – | | | | – | | | | 23,074,706 |
| | | | | | | | | | | | |
| | | | 290,298,004 | | | | – | | | | – | | | | 290,298,004 |
| Mid Cap | | | | | | | | | | | | | | | |
Common Stocks | | | 304,317,727 | | | | – | | | | – | | | | 304,317,727 |
Short-Term Investments | | | 26,582,819 | | | | – | | | | – | | | | 26,582,819 |
| | | | | | | | | | | | |
| | | | 330,900,546 | | | | – | | | | – | | | | 330,900,546 |
| Small Cap | | | | | | | | | | | | | | | |
Common Stocks | | | 99,085,713 | | | | 4,818,091 | | | | – | | | | 103,903,804 |
Short-Term Investments | | | 3,882,575 | | | | – | | | | – | | | | 3,882,575 |
| | | | | | | | | | | | |
| | | | 102,968,288 | | | | 4,818,091 | | | | – | | | | 107,786,379 |
| International Stock | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | |
Australia | | | – | | | | 297,499 | | | | – | | | | 297,499 |
Belgium | | | – | | | | 846,934 | | | | – | | | | 846,934 |
Brazil | | | – | | | | 364,438 | | | | – | | | | 364,438 |
Canada | | | – | | | | 1,384,620 | | | | – | | | | 1,384,620 |
Denmark | | | – | | | | 614,885 | | | | – | | | | 614,885 |
Finland | | | – | | | | 462,220 | | | | – | | | | 462,220 |
France | | | – | | | | 3,553,137 | | | | – | | | | 3,553,137 |
Germany | | | – | | | | 834,428 | | | | – | | | | 834,428 |
Ireland | | | 383,073 | | | | 352,339 | | | | – | | | | 735,412 |
Italy | | | – | | | | 504,710 | | | | – | | | | 504,710 |
Japan | | | – | | | | 5,265,719 | | | | – | | | | 5,265,719 |
Jersey | | | – | | | | 1,625,001 | | | | – | | | | 1,625,001 |
Luxembourg | | | – | | | | 211,817 | | | | – | | | | 211,817 |
Netherlands | | | – | | | | 1,487,169 | | | | – | | | | 1,487,169 |
Norway | | | – | | | | 771,623 | | | | – | | | | 771,623 |
Philippines | | | – | | | | 26,743 | | | | – | | | | 26,743 |
Singapore | | | – | | | | 313,001 | | | | – | | | | 313,001 |
Spain | | | – | | | | 295,304 | | | | – | | | | 295,304 |
Sweden | | | – | | | | 1,554,460 | | | | – | | | | 1,554,460 |
Switzerland | | | – | | | | 1,272,189 | | | | – | | | | 1,272,189 |
Taiwan | | | 618,409 | | | | – | | | | – | | | | 618,409 |
Turkey | | | – | | | | 229,880 | | | | – | | | | 229,880 |
United Kingdom | | | 654,326 | | | | 6,659,765 | | | | – | | | | 7,314,091 |
| Short-Term Investments | | | 2,050,055 | | | | – | | | | – | | | | 2,050,055 |
| | | | | | | | | | | | |
| | | | 3,705,863 | | | | 28,927,881 | | | | – | | | | 32,633,744 |
1See respective portfolio of investments for underlying holdings in each Fund. For additional information on the underlying funds held in the Allocation Funds, including shareholder prospectuses and financial reports, please visit each underlying fund’s website or visit the Securities and Exchange Commission’s website at http://www.sec.gov.
2At April 30, 2017, all Level 2 securities held are U.S. Government and Agency Obligations. See respective Portfolio of Investments.
Derivatives: The FASB issued guidance intended to enhance financial statement disclosure for derivative instruments and hedging activities and enable investors to understand: a) how and why a Fund uses derivative investments, b) how derivative instruments and related hedge fund items are accounted for, and c) how derivative instruments and related hedge items affect a Fund’s financial position, results of operations and cash flows.
The following table presents the types of derivatives in the Fund by location as presented on the Statement of Assets and Liabilities as of April 30, 2017.
| Statement of Asset & Liability Presentation of Fair Values of Derivative Instruments |
| | | | | | | | | | | | | |
| | | | | Asset Derivatives | | Liability Derivatives |
| | | | | | | |
| | | | | | | | | | | | | |
| Fund | | Derivatives accounted
for as hedging
instruments | | Statement of
Assets and
Liabilities Location | | Fair Value | | Statement of
Assets and
Liabilities Location | | Fair Value |
| | | | | | | | | | | |
| Core Bond | | Equity contracts | | Options purchased | | $ | 10,547 | | Options written | | $ | 8,594 |
| | | | | | | | | | | | | |
| Covered Call & Equity Income | | Equity contracts | | Options purchased | | | – | | Options written | | | 2,209,607 |
The following table presents the effect of Derivative Instruments on the Statement of Operations for the period ended April 30, 2017.
| Fund | | Derivatives accounted for
as hedging Instruments | | Realized Gain
(Loss) on Derivatives | | Change in Unrealized Appreciation
(Depreciation) on Derivatives |
| | | | | | | |
| Core Bond | | Equity contracts | | $ | 1,353 | | | $ | 9,225 | |
| | | | | | | | | | | |
| Covered Call & Equity Income | | Equity contracts | | | 3,458,819 | | | | (528,253 | ) |
There is no impact on the financial statements of the other Funds held in the Trust as they currently do not hold derivative financial instruments.
3. ADVISORY, ADMINISTRATION AND DISTRIBUTION AGREEMENTS
Advisory Agreement. For its investment advisory services to the Funds, the Investment Adviser is entitled to receive a fee, which is computed daily and paid monthly, at an annualized percentage rate of the average daily value of the net assets of each Fund as follows as of April 30, 2017:
| Fund | | Advisory Fee |
| Conservative Allocation | | 0.20% |
| Moderate Allocation | | 0.20% |
| Aggressive Allocation | | 0.20% |
| Government Money Market | | 0.40% |
| Tax-Free Virginia | | 0.50% |
| Tax-Free National | | 0.40% |
| High Quality Bond | | 0.30% |
| Core Bond | | 0.50% |
| Corporate Bond | | 0.40% |
| High Income | | 0.55% |
| Diversified Income | | 0.65% |
| Covered Call & Equity Income | | 0.85% |
| Dividend Income | | 0.75% |
| Large Cap Value | | 0.55% |
| Investors | | 0.75% |
| Mid Cap | | 0.75% |
| Small Cap | | 1.00% |
| International Stock | | 1.05% |
The Government Money Market, Core Bond, High Income, Diversified Income, Large Cap Value, Investors, Mid Cap, Small Cap, and International Stock Funds’ advisory fee will be reduced by 0.05% on assets exceeding $500 million, and by another 0.05% on assets exceeding $1 billion. The Investment Adviser is solely responsible for the payment of all fees to the Subadvisers. The Subadvisers for the Funds at April 30, 2017, are Wellington Management Company, LLP for the Small Cap Fund, Lazard Asset Management LLC for the International Stock Fund.
The Investment Adviser may, from time to time, contractually or voluntarily agree to waive a portion of its fees or expenses related to the Funds. In that regard, the Investment Adviser has contractually agreed to waive a portion of advisory fees on the Government Money Market Fund Class A Shares and Class B Shares until February 27, 2018, for the purpose of maintaining a one day yield of zero. The amount of the daily waiver was equal to the amount required to maintain a minimum daily distribution rate of zero. For the period ended April 30, 2017, the waivers totaled
Madison Funds | Notes to the Financial Statements (unaudited) - continued | April 30, 2017
$6,573 for Class A Shares and $143 for Class B Shares and are reflected as fees waived in the accompanying Statement of Operations. A portion of the Dividend Income Fund’s advisory fee, 0.10%, is being waived by the Investment Adviser until February 27, 2018. For the period ended April 30, 2017, the waivers totaled $52,051 for Divided Income and are reflected as fees waived in the accompanying Statement of Operations. The Investment Adviser does not have the right to recoup these waived fees.
Administrative Services Agreement. The Investment Adviser provides or arranges for each Fund to have all of the necessary operational and support services it needs for a fee. These fees are computed daily and paid monthly, at an annualized percentage rate of the average daily value of the net assets of each Fund as follows:
| Fund | | Class A | | Class B | | Class C | | Class Y | | Class R6 |
| Conservative Allocation | | 0.25% | | 0.25% | | 0.25% | | N/A | | N/A |
| Moderate Allocation | | 0.25% | | 0.25% | | 0.25% | | N/A | | N/A |
| Aggressive Allocation | | 0.25% | | 0.25% | | 0.25% | | N/A | | N/A |
| Government Money Market | | 0.15% | | 0.15% | | N/A | | N/A | | N/A |
| Tax-Free Virginia | | N/A | | N/A | | N/A | | 0.35% | | N/A |
| Tax-Free National | | N/A | | N/A | | N/A | | 0.35% | | N/A |
| High Quality Bond | | N/A | | N/A | | N/A | | 0.19% | | N/A |
| Core Bond | | 0.15% | | 0.15% | | N/A | | 0.15% | | 0.02% |
| Corporate Bond | | N/A | | N/A | | N/A | | 0.25% | | N/A |
| High Income | | 0.20% | | 0.20% | | N/A | | 0.20% | | N/A |
| Diversified Income | | 0.20% | | 0.20% | | 0.20% | | N/A | | N/A |
| Covered Call & Equity Income | | 0.15% | | N/A | | 0.15% | | 0.15% | | 0.02% |
| Dividend Income | | N/A | | N/A | | N/A | | 0.35% | | N/A |
| Large Cap Value | | 0.36% | | 0.36% | | N/A | | 0.36% | | N/A |
| Investors | | 0.20% | | N/A | | N/A | | 0.20% | | 0.02% |
| Mid Cap | | 0.40% | | 0.40% | | N/A | | 0.23% | | 0.02% |
| Small Cap | | 0.25% | | 0.25% | | N/A | | 0.25% | | N/A |
| International Stock | | 0.30% | | 0.30% | | N/A | | 0.30% | | N/A |
The direct expenses of the Funds’ Independent Trustees and independent auditors are paid out of this fee on behalf of the Funds.
The Investment Adviser may from time to time contractually or voluntarily agree to waive a portion of its fees or expenses related to the Funds. In that regard, the Investment Adviser waived a portion of service agreement fees on the Government Money Market Fund Class A Shares and Class B Shares until at least February 27, 2018. The amount of the daily waiver is equal to the amount required to maintain a minimum daily distribution rate of zero. A portion of the Dividend Income Funds’ annual service fee, 0.05% is being waived by the Investment Advisor until February 27, 2018. The waived amounts for the Government Money Market and Dividend Income Fund are reflected as fees in the accompanying Statement of Operations. For the period ended April 30, 2017 the waivers were as follows:
| Waived Fees or Expenses* |
| |
| Fund | | Class A | | Class B | | Class Y | | Total
Waivers | |
| Government Money Market | | $254 | | | $22 | | | $ – | | $ 276 | |
| Dividend Income | | – | | | – | | | 26,025 | | 26,025 | |
* The Investment Adviser does not have the right to recoup any of these waived fees.
Shareholder Service and Distribution Plans (Rule 12b-1). Madison Funds has adopted, on behalf of certain Funds and share classes, distribution and/or service plans pursuant to Rule 12b-1 under the Investment Company Act of 1940, as amended (the “1940 Act”). These plans permit the Funds to pay for distribution of their shares and servicing of their shareholders out of fund assets; therefore, the cost of these plans is indirectly borne by all shareholders who own shares of the affected Funds and share classes. These plans are described below:
Shareholder Service Fees (Class A, B and C shares). Service plans have been adopted pursuant to Rule 12b-1 under the 1940 Act for Class A, B and C shares of each of the Funds, other than the Government Money Market Fund. Under the terms of these plans, each Fund pays MFD Distributor, LLC (“MFD”) a service fee equal to 0.25% of the average daily net assets attributable to each class of shares of that Fund. The service fee is used by MFD to offset costs of servicing shareholder accounts or to compensate other qualified broker/dealers who sell shares of the Funds pursuant to agreements with MFD for their costs of servicing shareholder accounts. MFD may retain any portion of the service fee for which there is no broker/dealer of record as partial consideration for its services with respect to shareholder accounts.
Distribution Fees (Class B and C shares only). Distribution plans have been adopted pursuant to Rule 12b-1 under 1940 Act for Class B and C shares of each of the Funds. Under the terms of each plan, each Fund pays its principal distributor, MFD, a fee equal to 0.75% of the average daily net assets attributable to Class B and C shares of that Fund. MFD may use this fee to cover its distribution-related expenses (including commissions paid to broker/dealers for selling Class B and C shares) or distribution-related expenses of dealers. This fee increases the cost of investment in the Class B and C shares of a Fund and, over time, may cost more than paying the initial sales charge for Class A shares.
The Shareholder Service & Distribution Fees are computed daily and paid monthly, at an annualized percentage rate of the average daily value of the net assets of each Fund as follows:
| | | | Shareholder Service Fee | | Distribution Fee | | Total Shareholder Service
and Distribution Fees
(Rule 12b-1) |
| | | | | | | | |
| Fund | | | Class A | | Class B | | Class C | | Class B | | Class C | | Class A | | Class B | | Class C |
| Conservative Allocation | | | 0.25% | | 0.25% | | 0.25% | | 0.75% | | 0.75% | | 0.25% | | 1.00% | | 1.00% |
| Moderate Allocation | | | 0.25% | | 0.25% | | 0.25% | | 0.75% | | 0.75% | | 0.25% | | 1.00% | | 1.00% |
| Aggressive Allocation | | | 0.25% | | 0.25% | | 0.25% | | 0.75% | | 0.75% | | 0.25% | | 1.00% | | 1.00% |
| Government Money Market | | | N/A | | N/A | | N/A | | 0.75% | | N/A | | N/A | | 0.75% | | N/A |
| Tax-Free Virginia | | | N/A | | N/A | | N/A | | N/A | | N/A | | N/A | | N/A | | N/A |
| Tax-Free National | | | N/A | | N/A | | N/A | | N/A | | N/A | | N/A | | N/A | | N/A |
| High Quality Bond | | | N/A | | N/A | | N/A | | N/A | | N/A | | N/A | | N/A | | N/A |
| Core Bond | | | 0.25% | | 0.25% | | N/A | | 0.75% | | N/A | | 0.25% | | 1.00% | | N/A |
| Corporate Bond | | | N/A | | N/A | | N/A | | N/A | | N/A | | N/A | | N/A | | N/A |
| High Income | | | 0.25% | | 0.25% | | N/A | | 0.75% | | N/A | | 0.25% | | 1.00% | | N/A |
| Diversified Income | | | 0.25% | | 0.25% | | 0.25% | | 0.75% | | 0.75% | | 0.25% | | 1.00% | | 1.00% |
| Covered Call & Equity Income | | | 0.25% | | N/A | | 0.25% | | N/A | | 0.75% | | 0.25% | | N/A | | 1.00% |
| Dividend Income | | | N/A | | N/A | | N/A | | N/A | | N/A | | N/A | | N/A | | N/A |
| Large Cap Value | | | 0.25% | | 0.25% | | N/A | | 0.75% | | N/A | | 0.25% | | 1.00% | | N/A |
| Investors | | | 0.25% | | N/A | | N/A | | N/A | | N/A | | 0.25% | | N/A | | N/A |
| Mid Cap | | | 0.25% | | 0.25% | | N/A | | 0.75% | | N/A | | 0.25% | | 1.00% | | N/A |
| Small Cap | | | 0.25% | | 0.25% | | N/A | | 0.75% | | N/A | | 0.25% | | 1.00% | | N/A |
| International Stock | | | 0.25% | | 0.25% | | N/A | | 0.75% | | N/A | | 0.25% | | 1.00% | | N/A |
MFD may from time to time voluntarily agree to waive a portion of its fees or expenses related to the Funds. In that regard, MFD waived a portion of 12b-1 fees on the Government Money Market Fund Class B Shares for the purpose of maintaining a one day yield of zero. The amount of the daily waiver is equal to the amount required to maintain a minimum daily distribution rate of zero. For the period ended April 30, 2017, the waivers totaled $1,171 and are reflected as fees waived in the accompanying Statement of Operations. MFD does not have the right to recoup these waived fees.
Front-end sales charges and contingent deferred sales charges (“CDSC”) do not represent expenses of the Funds. Rather, they are deducted from the proceeds of sales of Fund shares prior to investment (Class A shares) or from redemption proceeds prior to remittance (Class A, B, and C shares), as applicable. MFD, in turn, uses a portion of these fees to pay financial advisors who sell Fund shares, as disclosed in the prospectus. The sales charges and CDSC collected and retained for the period November 1, 2016 through April 30, 2017, were as follows:
Madison Funds | Notes to the Financial Statements (unaudited) - continued | April 30, 2017
| | | | Amount Collected | | Amount Retained |
| Fund | | Class A | | Class B | | Class C | | Class A | | Class B | | Class C |
| Conservative Allocation | | $ | 48,584 | | $ | 7,034 | | $ | 1,368 | | $ | 6,388 | | $ | 7,034 | | $ | 1,368 |
| Moderate Allocation | | | 113,797 | | | 19,335 | | | 145 | | | 13,518 | | | 19,335 | | | 145 |
| Aggressive Allocation | | | 56,342 | | | 9,864 | | | 6 | | | 6,486 | | | 9,864 | | | 6 |
| Government Money Market | | | – | | | 4,266 | | | – | | | – | | | 4,266 | | | – |
| Core Bond | | | 41,981 | | | 886 | | | – | | | 5,819 | | | 886 | | | – |
| High Income | | | 8,085 | | | 1,245 | | | – | | | 1,028 | | | 1,245 | | | – |
| Diversified Income | | | 119,350 | | | 5,226 | | | 739 | | | 16,129 | | | 5,226 | | | 739 |
| Covered Call & Equity Income | | | 72,253 | | | – | | | 1,640 | | | 9,938 | | | – | | | 1,640 |
| Large Cap Value | | | 27,088 | | | 1,139 | | | – | | | 3,311 | | | 1,139 | | | – |
| Investors | | | 42,333 | | | – | | | – | | | 5,468 | | | – | | | – |
| Mid Cap | | | 75,853 | | | 743 | | | – | | | 9,630 | | | 743 | | | – |
| Small Cap | | | 5,144 | | | 167 | | | – | | | 632 | | | 167 | | | – |
| International Stock | | | 9,165 | | | 779 | | | – | | | 1,266 | | | 779 | | | – |
Other Expenses: In addition to the fees described above, the Trust is responsible for brokerage commissions and other expenses incurred in connection with the acquisition or disposition of investments, costs of borrowing money, overdrafts and any potential taxes owed and extraordinary expenses as approved by a majority of independent trustees.
Officers and Trustees: Certain officers and trustees of the Funds are also officers of the Investment Adviser. The Funds do not compensate their officers or affiliated trustees. Independent Trustees are compensated. Fees paid to the Trustees reduce the fees paid to the Investment Adviser pursuant to the Administrative Services Agreement as described above.
4. DIVIDENDS FROM NET INCOME AND DISTRIBUTIONS OF CAPITAL GAINS
With respect to dividends from net investment income, the Government Money Market Fund declares dividends, if any, daily and reinvests monthly. The Tax-Free Funds, Core Bond, Corporate Bond, High Income and Diversified Income Funds declare and reinvest dividends, if any, monthly. The Conservative Allocation, High Quality, Dividend Income and Covered Call & Equity Income Funds declare and reinvest dividends, if any, quarterly. The Moderate Allocation, Aggressive Allocation, Large Cap Value, Investors, Mid Cap and Small Cap, International Stock declare and reinvest dividends, if any, annually. The Funds distribute net realized gains from investment transactions, if any, to shareholders annually.
Income and capital gain distributions, if any, are determined in accordance with federal income tax regulations, which may differ from accounting principles generally accepted in the United States of America. Taxable distributions from income and realized capital gains in the Funds differ from book amounts earned during the period due to differences in the timing of capital gains recognition, and due to the reclassification of certain gains or losses from capital to income. Dividends from net investment income are determined on a class level. Capital gains are determined on a fund level.
5. SECURITIES TRANSACTIONS
For the period ended April 30, 2017, aggregate cost of purchases and proceeds from sales of securities, other than short-term investment, were as follows:
| | | | U.S. Government Securities | | | Other Investment Securities |
| Fund | | | Purchases | | | Sales | | | Purchases | | | Sales |
| Conservative Allocation | | $ | – | | $ | – | | $ | 27,610,849 | | $ | 30,443,831 |
| Moderate Allocation | | | – | | | – | | | 50,485,483 | | | 55,530,912 |
| Aggressive Allocation | | | – | | | – | | | 17,251,403 | | | 19,190,459 |
| Tax-Free Virginia | | | – | | | – | | | 800,915 | | | 711,867 |
| Tax-Free National | | | – | | | – | | | 673,811 | | | 1,012,862 |
| High Quality Bond | | | 11,201,751 | | | 16,498,772 | | | 3,790,677 | | | 3,826,695 |
| Core Bond | | | 11,724,331 | | | 12,703,074 | | | 10,170,218 | | | 11,647,922 |
| Corporate Bond | | | – | | | – | | | 1,657,045 | | | 3,024,516 |
| High Income | | | – | | | – | | | 4,085,961 | | | 5,351,958 |
| Diversified Income | | | 3,951,831 | | | 2,533,454 | | | 9,938,843 | | | 10,846,781 |
| Covered Call & Equity Income | | | – | | | – | | | 85,724,094 | | | 76,608,964 |
| Dividend Income | | | – | | | – | | | 9,230,395 | | | 13,977,612 |
| Large Cap Value | | | – | | | – | | | 45,283,132 | | | 58,849,659 |
| Investors | | | – | | | – | | | 36,816,285 | | | 55,363,310 |
| Mid Cap | | | – | | | – | | | 37,327,901 | | | 50,399,661 |
| Small Cap | | | – | | | – | | | 11,175,782 | | | 15,991,123 |
| International Stock | | | – | | | – | | | 5,861,783 | | | 11,159,679 |
6. COVERED CALL AND PUT OPTIONS
An option on a security is a contract that gives the holder of the option, in return for a premium, the right to buy from (in the case of a call) or sell to (in the case of a put) the writer of the option the security underlying the option at a specified exercise or “strike” price. The writer of an option on a security has an obligation upon exercise of the option to deliver the underlying security upon payment of the exercise price (in the case of a call) or pay the exercise price upon delivery of the underlying security (in the case of a put).
The Covered Call & Equity Income Fund will pursue its primary objective by employing an option strategy of writing (selling) covered call options on common stocks. The number of call options the Fund can write (sell) is limited by the amount of equity securities the Fund holds in its portfolio. The Fund will not write (sell) “naked” or uncovered call options. The Fund seeks to produce a high level of current income and gains generated from option writing premiums and, to a lesser extent, from dividends. Covered call writing also helps to reduce volatility (and risk profile) of the Fund by providing protection from declining stock prices.
When an option is written, the premium received is recorded as an asset with an equal liability and is subsequently marked to market to reflect the current market value of the option written. These liabilities are reflected as options written in the Statement of Assets and Liabilities. Premiums received from writing options which expire unexercised are recorded on the expiration date as a realized gain. The difference between the premium received and the amount paid on effecting a closing purchase transaction, including brokerage commissions, is also treated as a realized gain, or if the premium is less than the amount paid for the closing purchase transactions, as a realized loss. If a call option is exercised, the premium is added to the proceeds from the sale of the underlying security in determining whether there has been a realized gain or loss.
Madison Funds | Notes to the Financial Statements (unaudited) - continued | April 30, 2017
Transactions in option contracts in the Core Bond Fund and Covered Call & Equity Income Fund during the period ended April 30, 2017 were as follows:
| | | | Number of Contracts | | Premiums Received |
| | | | | | |
| Core Bond Fund | | | | | | | | | | | |
| Options outstanding, beginning of period | | | | – | | | | | $ | – | |
| Options written during the period | | | | 100 | | | | | | 52,044 | |
| Options closed during the period | | | | (50 | ) | | | | | (34,225 | ) |
| Options exercised during the period | | | | – | | | | | | – | |
| Options expired during the period | | | | – | | | | | | – | |
| | | | | | | | | | | |
| Options outstanding, end of period | | | | 50 | | | | | $ | 17,819 | |
| | | | | | | | | | | | |
| Covered Call & Equity Income Fund | | | | | | | | | | | |
| Options outstanding, beginning of period | | | | 10,248 | | | | | $ | 1,839,315 | |
| Options written during the period | | | | 37,147 | | | | | | 6,154,754 | |
| Options closed during the period | | | | (9,692 | ) | | | | | (1,666,283 | ) |
| Options exercised during the period | | | | (10,323 | ) | | | | | (1,662,463 | ) |
| Options expired during the period | | | | (14,206 | ) | | | | | (2,668,606 | ) |
| | | | | | | | | | | |
| Options outstanding, end of period | | | | 13,174 | | | | | $ | 1,996,717 | |
7. FUTURES CONTRACTS AND OPTIONS ON FUTURES CONTRACTS
Effective May 2015, the Core Bond Fund may purchase and sell futures contracts and purchase and write options on futures contracts on a limited basis. The Fund may purchase and sell futures contracts based on various securities (such as U.S. Government securities), securities indices, foreign currencies and other financial instruments and indices. The Fund will engage in futures or related options transactions on a limited basis only for bona fide hedging purposes or for purposes of seeking to increase total returns to the extent permitted by regulations of the Commodity Futures Trading Commission.
Futures Contracts. The Core Bond Fund may use futures contracts to manage its exposure to the securities markets or to movements in interest rates and currency values. The primary risks associated with the use of futures contracts are the imperfect correlation between the change in market value of the securities held by the Fund and the prices of futures contracts and the possibility of an illiquid market. Futures contracts are valued based upon their quoted daily settlement prices. Upon entering into a futures contract, the Fund is required to deposit with its futures broker an amount of cash, U.S. Government and Agency Obligations, or other assets, in accordance with the initial margin requirements of the broker or exchange. Futures contracts are marked to market daily and based on such movements in the price of the contracts, an appropriate payable or receivable for the change in value may be posted or collected by the Fund (“variation margin”). Gains or losses are recognized but not considered realized until the contracts expire or close. Futures contracts involve, to varying degrees, risk of loss in excess of the variation margin disclosed within exchange traded or centrally cleared financial derivative instruments on the Statement of Assets and Liabilities.
Options on Futures Contracts. The acquisition of put and call options on futures contracts will give the Core Bond Fund the right (but not the obligation) for a specified price, to sell or to purchase, respectively, the underlying futures contract at any time during the option period. As the purchaser of an option on a futures contract, the Fund obtains the benefit of the futures position if prices move in a favorable direction but limits its risk of loss in the event of an unfavorable price movement to the loss of the premium and transaction costs.
The writing of a call option on a futures contract generates a premium which may partially offset a decline in the value of the Fund’s assets. By writing a call option, the Fund becomes obligated, in exchange for the premium, to sell a futures contract which may have a value higher than the exercise price. Conversely, the writing of a put option on a futures contract generates a premium, which may partially offset an increase in the price of securities that the Fund intends to purchase. However, the Fund becomes obligated to purchase a futures contract, which may have a value lower than the exercise price. Thus, the loss incurred by the Fund in writing options on futures is potentially unlimited and may exceed the amount of the premium received.
8. FOREIGN SECURITIES
Each Fund, other than the Tax-Free Funds and the Government Market Fund may invest in foreign securities. Foreign securities are defined as securities that are: (i) issued by companies organized outside the U.S. or whose principal operations are outside the U.S., or issued by foreign governments or their agencies or instrumentalities (“foreign issuers”); (ii) principally traded outside of the U.S.; and (iii) quoted or denominated in a foreign currency (“non-dollar securities”). Foreign securities include ADRs, European Depositary Receipts (“EDRs”), GDRs, Swedish Depositary Receipts (“SDRs”) and foreign money market securities.
Certain of the Funds have reclaims receivable balances, in which the Funds are due a reclaim on the taxes that have been paid to some foreign jurisdictions. The values of all reclaims are not significant for any of the Funds and are reflected in Other Assets on the Statement of Assets and Liabilities. These receivables are reviewed to ensure the current receivable balance is reflective of the amount deemed to be collectible.
9. SECURITIES LENDING
The Core Bond, High Income, Diversified Income, Large Cap Value, Mid Cap and International Stock Funds have entered into a Securities Lending Agreement (the “Agreement”) with State Street Bank and Trust Company (“State Street”). Under the terms of the Agreement, the Funds may lend portfolio securities to qualified borrowers in order to earn additional income. The Agreement requires that loans are collateralized at all times by cash or other liquid assets at least equal to 102% of the value of securities, which is determined on a daily basis. Amounts earned as interest on investments of cash collateral, net of rebates and fees, if any, are included in the Statement of Operations. The primary risk associated with securities lending is if the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, the Funds could experience delays and costs in recovering securities loaned or in gaining access to the collateral.
The Funds did not engage in any securities lending activity during the period ended April 30, 2017.
10. FEDERAL AND FOREIGN INCOME TAX INFORMATION
It is each Fund’s policy to comply with the requirements of Subchapter M of the Internal Revenue Code of 1986 applicable to regulated investment companies and to distribute all its taxable income to its shareholders and any net realized capital gains at least annually. Accordingly, no provisions for federal income taxes are recorded in the accompanying statements.
The Funds have not recorded any liabilities for material unrecognized tax benefits as of April 30, 2017. It is each Fund’s policy to recognize accrued interest and penalties related to uncertain tax benefits in income taxes, as appropriate. Tax years that remain open to examination by major tax jurisdictions include tax years ended 2013 through 2016.
For federal income tax purposes, the Funds listed below have capital loss carryovers as of October 31, 2016, which are available to offset future capital gains, if any, realized through the fiscal year listed:
| | | | | | | | | | | | | | No Expiration Date | |
| Fund | 2017 | | 2018 | | 2019 | | Short Term | | Long Term |
| Government Money Market | $ | 16 | | | $ | 5 | | | $ | – | | | $ | 147 | | | $ | – | |
| High Income | | – | | | | – | | | | – | | | | 414,170 | | | | 1,323,841 | |
| International Stock | | – | | | | – | | | | – | | | | 796,302 | | | | 1,271,428 | |
Madison Funds | Notes to the Financial Statements (unaudited) - continued | April 30, 2017
At April 30, 2017, the aggregate gross unrealized appreciation (depreciation) and net unrealized appreciation (depreciation) for all securities, excluding options, as computed on a federal income tax basis for each Fund were as follows:
| Fund | | Appreciation | | | Depreciation | | | | Net |
| Conservative Allocation Fund | | $ | 2,402,106 | | | $ | (113,861 | ) | | | $ | 2,288,245 | |
| Moderate Allocation Fund | | | 11,319,660 | | | | (183,152 | ) | | | | 11,136,508 | |
| Aggressive Allocation Fund | | | 6,793,035 | | | | (103,159 | ) | | | | 6,689,876 | |
| Government Money Market | | | – | | | | – | | | | | – | |
| Tax-Free Virginia Fund | | | 658,759 | | | | (69,931 | ) | | | | 588,828 | |
| Tax-Free National Fund | | | 1,112,186 | | | | (62,515 | ) | | | | 1,049,671 | |
| High Quality Bond Fund | | | 634,899 | | | | (335,034 | ) | | | | 299,865 | |
| Core Bond Fund | | | 4,582,213 | | | | (1,162,746 | ) | | | | 3,419,467 | |
| Corporate Bond Fund | | | 645,892 | | | | (88,041 | ) | | | | 557,851 | |
| High Income Fund | | | 936,341 | | | | (203,971 | ) | | | | 732,370 | |
| Diversified Income Fund | | | 26,375,275 | | | | (894,880 | ) | | | | 25,480,395 | |
| Covered Call & Equity Income | | | 2,247,065 | | | | (6,798,910 | ) | | | | (4,551,845 | ) |
| Dividend Income Fund | | | 14,121,926 | | | | (720,871 | ) | | | | 13,401,055 | |
| Large Cap Value Fund | | | 15,409,934 | | | | (577,376 | ) | | | | 14,832,558 | |
| Investors Fund | | | 65,021,031 | | | | (56,295 | ) | | | | 64,964,736 | |
| Mid Cap Fund | | | 110,119,663 | | | | (2,110,078 | ) | | | | 108,009,585 | |
| Small Cap Fund | | | 23,229,385 | | | | (5,541,219 | ) | | | | 17,688,166 | |
| International Stock Fund | | | 6,908,908 | | | | (305,531 | ) | | | | 6,603,377 | |
The differences between cost amounts for book purposes and tax purposes are primarily due to the tax deferral of wash sales.
11. CERTAIN RISK
Investing in certain financial instruments, including forward foreign currency contracts, involves certain risks. Risks associated with these instruments include potential for an illiquid secondary market for the instruments or inability of counterparties to perform under the terms of the contracts, changes in the value of foreign currency relative to the U.S. dollar and financial statements’ volatility resulting from an imperfect correlation between the movements in the prices of the instruments and the prices of the underlying securities and interest rates being hedged. The International Stock Fund may enter into these contracts primarily to protect the Fund from adverse currency movements.
Investing in foreign securities involves certain risks not necessarily found in U.S. markets. These include risks associated with adverse changes in economic, political, regulatory and other conditions, changes in currency exchange rates, exchange control regulations, expropriation of assets or nationalization, imposition of withholding taxes on dividend or interest payments or capital gains, and possible difficulty in obtaining and enforcing judgments against foreign entities. Further, issuers of foreign securities are subject to different, and often less comprehensive, accounting, reporting and disclosure requirements than domestic issuers.
The Funds may 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 risk. Federal Reserve policy changes may expose fixed-income and related markets to heightened volatility and may reduce liquidity for certain fund investments, which could cause the value of a fund’s investments and share price to decline. The Core Bond may invest in derivatives tied to fixed-income markets and may be more substantially exposed to these risks than a fund that does not invest in derivatives.
The Government Money Market Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation (“FDIC”) or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund. Additionally, while the Fund has maintained a constant share price since inception, and will continue to try to do so, neither the Investment Adviser nor its affiliates are required to make a capital infusion, enter into a capital support agreement or take other actions to prevent the Fund’s share price from falling below $1.00.
The Tax-Free Funds invest in municipal securities. Municipal securities generally are subject to possible default, bankruptcy or insolvency of the issuer. Principal and interest repayment may be affected by federal, state and local legislation, referendums, judicial decisions and executive acts. The tax-exempt status of municipal securities may be affected by future changes in the tax laws, litigation involving the tax status of the securities and errors and omissions by issuers and their counsel. Madison will not attempt to make an independent determination of the present or future tax-exempt status of municipal securities acquired for the Funds. While most municipal securities have a readily available market, a variety of factors, including the scarcity of issues and the fact that tax-free investments are inappropriate for significant numbers of investors, limit the depth of the market for these securities. Accordingly, it may be more difficult for the Funds to sell large blocks of municipal securities advantageously than would be the case with comparable taxable securities.
The Core Bond Fund may invest in futures contracts or options on futures contracts. Investing in futures contracts and options on futures entail certain other risks such as: unanticipated changes in interest rates, securities prices or currency exchange rates, and may result in a poorer overall performance for the Fund than if it had not entered into any futures contracts or options transactions. In the event of an imperfect correlation between a futures position and portfolio position which is intended to be protected, the desired protection may not be obtained and the Fund may be exposed to risk of loss. Perfect correlation between the fund’s futures positions and portfolio positions may be difficult to achieve.
The High Income Fund invests in securities offering high current income which generally will include bonds in the below investment grade categories of recognized rating agencies (so-called “junk bonds”). These securities generally involve more credit risk than securities in the higher rating categories. In addition, the trading market for high yield securities may be relatively less liquid than the market for higher-rated securities. The Fund generally invests at least 80% of its net assets in high yield securities.
The Covered Call & Equity Income Fund invests in options on securities. 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. A writer of a put option is exposed to the risk of loss if fair value of the underlying securities declines, but profits only to the extent of the premium received if the underlying security increases in value. The writer of an option has no control over the time when it may be required to fulfill its obligation as writer of the option. Once an option writer has received an exercise notice, it cannot effect a closing purchase transaction in order to terminate its obligation under the option and must deliver the underlying security at the exercise price.
The Allocation Funds are fund of funds, meaning that each invests primarily in Underlying Funds, including ETFs. Thus, each 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; and the Underlying Fund’s performance, in turn, depends on the particular securities in which that Underlying Fund invests and the expenses of that Fund. Accordingly, the Allocation Funds are subject to the risks of the Underlying Funds in direct proportion to the allocation of their respective assets among the Underlying Funds.
Additionally, the Allocation Funds are subject to asset allocation risk and manager risk. Manager risk (i.e., fund selection risk) is the risk that the Underlying Fund(s) selected to fulfill a particular asset class underperforms their peers. Asset allocation
Madison Funds | Notes to the Financial Statements (unaudited) - concluded | April 30, 2017
risk is the risk that 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.
The Funds are also subject to cybersecurity risk, which include the risks associated with computer systems, networks and devices to carry out routine business operations. These systems, networks and devices employ a variety of protections that are designed to prevent cyberattacks. Despite the various cyber protections utilized by the Funds, the Investment Adviser, and other service providers, their systems, networks, or devices could potentially be breached. The Funds, their shareholders, and the Investment Adviser could be negatively impacted as a result of a cybersecurity breach. The funds cannot control the cybersecurity plans and systems put in place by service providers or any other third parties whose operations may affect the funds. The Funds do monitor this risk closely.
In addition to the other risks described above in the prospectus, you should understand what we refer to as “unknown market risks.” While investments in securities have been keystones in wealth building and management, at times these investments have produced surprises. Those who enjoyed growth and income of their investments generally were rewarded for the risks they took by investing in the markets. Although the Investment Adviser seeks to appropriately address and manage the risks identified and disclosed to you in connection with the management of the securities in the Funds, you should understand that the very nature of the securities markets includes the possibility that there may be additional risks of which we are not aware. We certainly seek to identify all applicable risks and then appropriately address them, take appropriate action to reasonably manage them and to make you aware of them so you can determine if they exceed your risk tolerance. Nevertheless, the often volatile nature of the securities markets and the global economy in which we work suggests that the risk of the unknown is something to consider in connection with an investment in securities. Unforeseen events could under certain circumstances produce a material loss of the value of some or all of the securities we manage for you in the Funds.
12. CAPITAL SHARES AND AFFILIATED OWNERSHIP
The Allocation Funds invest in Underlying Funds, certain of which may be deemed to be under common control because of the same or affiliated investment adviser and membership in a common family of investment companies (the “Affiliated Underlying Funds”). A summary of the transactions with each Affiliated Underlying Fund during the period ended April 30, 2017 follows:
| Fund/Underlying Fund | | Balance of
Shares Held at
10/31/2016 | | Gross
Additions | | Gross
Sales | | | Balance of
Shares Held at
4/30/2017 | | Value at
4/30/2017 | | Realized
Gain (Loss) | | | Distributions
Received1 |
| Conservative Allocation | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Madison Core Bond Fund Class Y | | | 1,525,716 | | | | 45,226 | | | | (55,055 | ) | | | | 1,515,887 | | | | $ | 15,113,397 | | | | $ | (13,462 | ) | | | | $ | 267,587 | |
| Madison Corporate Bond Fund Class Y | | | 446,801 | | | | – | | | | – | | | | | 446,801 | | | | | 5,138,207 | | | | | – | | | | | | 93,016 | |
| Madison Dividend Income Fund Class Y | | | 178,313 | | | | 5,692 | | | | (28,882 | ) | | | | 155,123 | | | | | 3,749,323 | | | | | 16,664 | | | | | | 133,540 | |
| Madison Investors Fund Class Y | | | 168,292 | | | | 16,446 | | | | – | | | | | 184,738 | | | | | 3,933,077 | | | | | – | | | | | | 109,988 | |
| Madison Mid Cap Fund Class Y | | | 128,011 | | | | 5,067 | | | | (10,941 | ) | | | | 122,137 | | | | | 1,127,326 | | | | | 5,360 | | | | | | 44,893 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Totals | | | | | | | | | | | | | | | | | | | | $ | 29,061,330 | | | | $ | 8,562 | | | | | $ | 649,024 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Moderate Allocation | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Madison Core Bond Fund Class Y | | | 2,147,334 | | | | 25,329 | | | | – | | | | | 2,172,663 | | | | $ | 21,661,451 | | | | $ | – | | | | | $ | 376,400 | |
| Madison Dividend Income Fund Class Y | | | 623,441 | | | | 19,829 | | | | (54,201 | ) | | | | 589,069 | | | | | 14,237,809 | | | | | 31,048 | | | | | | 465,280 | |
| Madison Investors Fund Class Y | | | 705,317 | | | | 22,710 | | | | (51,689 | ) | | | | 676,338 | | | | | 14,399,230 | | | | | 106,096 | | | | | | 449,653 | |
| Madison Large Cap Value Fund Class Y | | | 180,985 | | | | 29,360 | | | | (88,910 | ) | | | | 121,435 | | | | | 1,769,308 | | | | | (45,911 | ) | | | | | 415,147 | |
| Madison Mid Cap Fund Class Y | | | 340,479 | | | | 14,737 | | | | – | | | | | 355,216 | | | | | 3,278,642 | | | | | – | | | | | | 130,568 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Totals | | | | | | | | | | | | | | | | | | | | $ | 55,346,440 | | | | $ | 91,233 | | | | | $ | 1,837,048 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Aggressive Allocation | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Madison Core Bond Fund Class Y | | | 485,022 | | | | 66,538 | | | | – | | | | | 551,560 | | | | $ | 5,499,057 | | | | $ | – | | | | | $ | 91,541 | |
| Madison Dividend Income Fund Class Y | | | 314,476 | | | | 10,208 | | | | (16,021 | ) | | | | 308,663 | | | | | 7,460,391 | | | | | 22,758 | | | | | | 239,541 | |
| Madison Investors Fund Class Y | | | 355,141 | | | | 11,722 | | | | (11,986 | ) | | | | 354,877 | | | | | 7,555,336 | | | | | 27,065 | | | | | | 232,103 | |
| Madison Large Cap Value Fund Class Y | | | 80,411 | | | | 13,045 | | | | – | | | | | 93,456 | | | | | 1,361,653 | | | | | – | | | | | | 184,450 | |
| Madison Mid Cap Fund Class Y | | | 237,806 | | | | 10,293 | | | | – | | | | | 248,099 | | | | | 2,289,950 | | | | | – | | | | | | 91,194 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Totals | | | | | | | | | | | | | | | | | | | | $ | 24,166,387 | | | | $ | 49,823 | | | | | $ | 838,829 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 1 Distributions received includes distributions from net investment income and from capital gains from the underlying funds. |
13. SUBSEQUENT EVENTS
Management has evaluated the impact of all subsequent events on the Funds through the date the financial statements were available for issue. No other events have taken place that meet the definition of subsequent event that require adjustment to, or disclosure in the financial statements.
| Madison Funds | April 30, 2017 |
| |
| Other Information (unaudited) |
FUND EXPENSES PAID BY SHAREHOLDERS
As shareholders of the Funds, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments, and redemption fees; and (2) ongoing costs, including management fees; distribution and/or service (12b-1) fees; and other fund expenses. The examples below are intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The examples below are based on an investment of $1,000 invested at the beginning of the period and held for the entire six-month period ended April 30, 2017. Expenses paid during the period in the tables below are equal to the Fund’s annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half fiscal year period).
Actual Expenses
The table below provides information about actual account values using actual expenses and actual returns for the funds. You may use the information in this table, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, and $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the table for the fund you own under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
| | | | | | | | | | | | | | | | | | |
| | CLASS A | | CLASS B |
| Fund | Beginning
Account Value | Ending
Account Value | | Annual
Expense Ratio | Expenses Paid
During Period | | Ending
Account Value | Annual
Expense Ratio | | Expenses Paid
During Period |
| Conservative Allocation* | | $1,000 | | $1,039.40 | | | 0.70% | | | $ 3.54 | | $1,035.00 | | 1.45% | | | $ 7.32 |
| Moderate Allocation* | | 1,000 | | 1,071.60 | | | 0.70% | | | 3.60 | | 1,067.90 | | 1.45% | | | 7.43 |
| Aggressive Allocation* | | 1,000 | | 1,098.90 | | | 0.70% | | | 3.64 | | 1,095.30 | | 1.45% | | | 7.53 |
| Government Money Market | | 1,000 | | 1,000.10 | | | 0.48% | | | 2.38 | | 1,000.00 | | 0.42% | | | 2.08 |
| Core Bond | | 1,000 | | 996.40 | | | 0.90% | | | 4.45 | | 991.70 | | 1.65% | | | 8.15 |
| High Income | | 1,000 | | 1,042.40 | | | 1.00% | | | 5.06 | | 1,038.90 | | 1.75% | | | 8.85 |
| Diversified Income | | 1,000 | | 1,062.60 | | | 1.10% | | | 5.63 | | 1,058.30 | | 1.85% | | | 9.44 |
| Covered Call & Equity Income | | 1,000 | | 1,047.00 | | | 1.25% | | | 6.34 | | N/A | | N/A | | | N/A |
| Large Cap Value | | 1,000 | | 1,092.30 | | | 1.16% | | | 6.02 | | 1,087.80 | | 1.91% | | | 9.89 |
| Investors | | 1,000 | | 1,119.20 | | | 1.20% | | | 6.31 | | 1,000.00 | | N/A | | | N/A |
| Mid Cap | | 1,000 | | 1,113.80 | | | 1.40% | | | 7.34 | | 1,107.70 | | 2.15% | | | 11.24 |
| Small Cap | | 1,000 | | 1,174.60 | | | 1.50% | | | 8.09 | | 1,171.10 | | 2.25% | | | 12.11 |
| International Stock | | 1,000 | | 1,078.70 | | | 1.61% | | | 8.30 | | 1,074.50 | | 2.36% | | | 12.14 |
| |
| | | | | | | | | | CLASS C | | | | | | |
| Fund | Beginning Account Value | | Ending Account Value | | | | Annual Expense Ratio | | Expenses Paid During Period |
| Conservative Allocation* | | $1,000 | | | | | $1,035.00 | | | | | 1.45% | | | | | $ 7.32 |
| Moderate Allocation* | | 1,000 | | | | | 1,067.80 | | | | | 1.45% | | | | | 7.43 |
| Aggressive Allocation* | | 1,000 | | | | | 1,095.20 | | | | | 1.46% | | | | | 7.58 |
| Diversified Income | | 1,000 | | | | | 1,057.60 | | | | | 1.85% | | | | | 9.44 |
| Covered Call & Equity Income | | 1,000 | | | | | 1,042.60 | | | | | 2.00% | | | | | 10.13 |
| |
| | | | | | | | | | CLASS Y | | | | | | |
| Fund | Beginning Account Value | | Ending Account Value | | | | Annual Expense Ratio | | Expenses Paid During Period |
| Tax-Free Virginia | | $1,000 | | | | | $ 994.00 | | | | | 0.85% | | | | | $ 4.20 |
| Tax-Free National | | 1,000 | | | | | 993.90 | | | | | 0.75% | | | | | 3.71 |
| High Quality Bond | | 1,000 | | | | | 997.50 | | | | | 0.49% | | | | | 2.43 |
| Core Bond | | 1,000 | | | | | 997.70 | | | | | 0.65% | | | | | 3.22 |
| Corporate Bond | | 1,000 | | | | | 1,001.90 | | | | | 0.65% | | | | | 3.23 |
| High Income | | 1,000 | | | | | 1,044.90 | | | | | 0.75% | | | | | 3.80 |
| Covered Call & Equity Income | | 1,000 | | | | | 1,047.90 | | | | | 1.00% | | | | | 5.08 |
| Dividend Income | | 1,000 | | | | | 1,115.30 | | | | | 0.95% | | | | | 4.98 |
| Large Cap Value | | 1,000 | | | | | 1,093.90 | | | | | 0.91% | | | | | 4.72 |
| Investors | | 1,000 | | | | | 1,120.90 | | | | | 0.95% | | | | | 5.00 |
| Mid Cap | | 1,000 | | | | | 1,114.50 | | | | | 0.98% | | | | | 5.14 |
| Small Cap | | 1,000 | | | | | 1,177.10 | | | | | 1.25% | | | | | 6.75 |
| International Stock | | 1,000 | | | | | 1,080.80 | | | | | 1.36% | | | | | 7.02 |
| |
| | | | | | | | | | CLASS R6 | | | | | | |
| Fund | Beginning Account Value | | Ending Account Value | | | | Annual Expense Ratio | | Expenses Paid During Period |
| Core Bond | | $1,000 | | | | | $ 997.70 | | | | | 0.52% | | | | | $2.58 |
| Covered Call & Equity Income | | 1,000 | | | | | 1,048.70 | | | | | 0.87% | | | | | 4.42 |
| Investors | | 1,000 | | | | | 1,121.70 | | | | | 0.77% | | | | | 4.05 |
| Mid Cap | | 1,000 | | | | | 1,116.30 | | | | | 0.77% | | | | | 4.04 |
* The annual expense ratio does not include the expenses of the underlying funds.
Madison Funds | Other Information (unaudited) - continued | April 30, 2017
Hypothetical Example for Comparison Purposes
The table below provides information about hypothetical account values and hypothetical expenses based on the Funds’ actual expense ratios and an assumed rate of return of 5% per year before expenses, which are not the Funds’ actual returns. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Funds and other funds. To do so, compare the 5% hypothetical example of the funds you own with the 5% hypothetical examples that appear in the shareholder reports of other similar funds.
| | | | | | | | | | | | | | | | | |
| | CLASS A | | CLASS B |
| Fund | | Beginning
Account Value | | Ending
Account Value | | Annual
Expense Ratio | | Expenses Paid
During Period | | Ending
Account Value | | Annual
Expense Ratio | | | Expenses Paid
During Period |
| Conservative Allocation* | | $1,000 | | $1,021.32 | | | 0.70% | | | $3.51 | | $1,017.60 | | 1.45% | | | $ 7.25 |
| Moderate Allocation* | | 1,000 | | 1,021.32 | | | 0.70% | | | 3.51 | | 1,017.60 | | 1.45% | | | 7.25 |
| Aggressive Allocation* | | 1,000 | | 1,021.32 | | | 0.70% | | | 3.51 | | 1,017.60 | | 1.45% | | | 7.25 |
| Government Money Market | | 1,000 | | 1,022.41 | | | 0.48% | | | 2.41 | | 1,022.71 | | 0.42% | | | 2.11 |
| Core Bond | | 1,000 | | 1,020.33 | | | 0.90% | | | 4.51 | | 1,016.61 | | 1.65% | | | 8.25 |
| High Income | | 1,000 | | 1,019.84 | | | 1.00% | | | 5.01 | | 1,016.12 | | 1.75% | | | 8.75 |
| Diversified Income | | 1,000 | | 1,019.34 | | | 1.10% | | | 5.51 | | 1,015.62 | | 1.85% | | | 9.25 |
| Covered Call & Equity Income | | 1,000 | | 1,018.60 | | | 1.25% | | | 6.26 | | N/A | | N/A | | | N/A |
| Large Cap Value | | 1,000 | | 1,019.04 | | | 1.16% | | | 5.81 | | 1,015.32 | | 1.91% | | | 9.54 |
| Investors | | 1,000 | | 1,018.84 | | | 1.20% | | | 6.01 | | 1,024.79 | | N/A | | | N/A |
| Mid Cap | | 1,000 | | 1,017.85 | | | 1.40% | | | 7.00 | | 1,014.13 | | 2.15% | | | 10.74 |
| Small Cap | | 1,000 | | 1,017.36 | | | 1.50% | | | 7.50 | | 1,013.64 | | 2.25% | | | 11.23 |
| International Stock | | 1,000 | | 1,016.81 | | | 1.61% | | | 8.05 | | 1,013.09 | | 2.36% | | | 11.78 |
| |
| | | | | | | | | | CLASS C | | | | | | |
| Fund | Beginning Account Value | | | Ending Account Value | | | Annual Expense Ratio | | | Expenses Paid During Period |
| Conservative Allocation* | | $1,000 | | | | | $1,017.60 | | | | | 1.45% | | | | | $7.25 |
| Moderate Allocation* | | 1,000 | | | | | 1,017.60 | | | | | 1.45% | | | | | 7.25 |
| Aggressive Allocation* | | 1,000 | | | | | 1,017.55 | | | | | 1.46% | | | | | 7.30 |
| Diversified Income | | 1,000 | | | | | 1,015.62 | | | | | 1.85% | | | | | 9.25 |
| Covered Call & Equity Income | | 1,000 | | | | | 1,014.88 | | | | | 2.00% | | | | | 9.99 |
| |
| | | | | | | | | | CLASS Y | | | | | | |
| Fund | Beginning Account Value | | | Ending Account Value | | | | Annual Expense Ratio | | Expenses Paid During Period |
| Tax-Free Virginia | | $1,000 | | | | | $1,020.58 | | | | | 0.85% | | | | | $4.26 |
| Tax-Free National | | 1,000 | | | | | 1,021.08 | | | | | 0.75% | | | | | 3.76 |
| High Quality Bond | | 1,000 | | | | | 1,022.36 | | | | | 0.49% | | | | | 2.46 |
| Core Bond | | 1,000 | | | | | 1,021.57 | | | | | 0.65% | | | | | 3.26 |
| Corporate Bond | | 1,000 | | | | | 1,021.57 | | | | | 0.65% | | | | | 3.26 |
| High Income | | 1,000 | | | | | 1,021.08 | | | | | 0.75% | | | | | 3.76 |
| Covered Call & Equity Income | | 1,000 | | | | | 1,019.84 | | | | | 1.00% | | | | | 5.01 |
| Dividend Income | | 1,000 | | | | | 1,020.08 | | | | | 0.95% | | | | | 4.76 |
| Large Cap Value | | 1,000 | | | | | 1,020.28 | | | | | 0.91% | | | | | 4.56 |
| Investors | | 1,000 | | | | | 1,020.08 | | | | | 0.95% | | | | | 4.76 |
| Mid Cap | | 1,000 | | | | | 1,019.93 | | | | | 0.98% | | | | | 4.91 |
| Small Cap | | 1,000 | | | | | 1,018.60 | | | | | 1.25% | | | | | 6.26 |
| International Stock | | 1,000 | | | | | 1,018.05 | | | | | 1.36% | | | | | 6.81 |
| |
| | | | | | | | | | CLASS R6 | | | | | | |
| Fund | Beginning Account Value | | | Ending Account Value | | | Annual Expense Ratio | | Expenses Paid During Period |
| Core Bond | | $1,000 | | | | | $1,022.22 | | | | | 0.52% | | | | | $2.61 |
| Covered Call & Equity Income | | 1,000 | | | | | 1,020.48 | | | | | 0.87% | | | | | 4.36 |
| Investors | | 1,000 | | | | | 1,020.98 | | | | | 0.77% | | | | | 3.86 |
| Mid Cap | | 1,000 | | | | | 1,020.98 | | | | | 0.77% | | | | | 3.86 |
*The annual expense ratio does not include the expenses of the underlying funds.
Please note that the expenses shown in the tables are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads), or redemption fees. The information provided in the hypothetical example table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Madison Funds | Other Information (unaudited) - concluded | April 30, 2017
AVAILABILITY OF QUARTERLY PORTFOLIO SCHEDULES
The Funds file their complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Form N-Q is available to shareholders at no cost by calling 1-800-877-6089 or on the SEC’s website at www.sec.gov. Form N-Q may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. More information on the operation of the Public Reference Room may be obtained by calling 1-202-551-8090.
PROXY VOTING POLICIES, PROCEDURES AND RECORDS
A description of the policies and procedures used by the Funds to vote proxies related to portfolio securities is available to shareholders at no cost on the Funds’ website at www.madisonfunds.com or by calling 1-800-877-6089. The proxy voting records for the Funds for the most recent twelve-month period ended June 30 are available to shareholders at no cost on the SEC’s website at www.sec.gov.
Forward-Looking Statement Disclosure.
One of our most important responsibilities as investment company managers is to communicate with shareholders in an open and direct manner. Some of our comments in the Management’s Discussion of Fund Performance section are based on current management expectations and are considered “forward-looking statements.” Actual future results, however, may prove to be different from our expectations. You can identify forward-looking statements by words such as estimate, may, will, expect, believe, plan and other similar terms. We cannot promise future returns. Our opinions are a reflection of our best judgment at the time this report is compiled, and we disclaim any obligation to update or alter forward-looking statements as a result of new information, future events, or otherwise.
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Madison Funds
Post Office Box 8390
Boston, MA 02266-8390
1 (800) 877-6089
www.madisonfunds.com | |
SEC File Number: 811-08261
4460-P1060
Rev: 0417
Item 2. Code of Ethics.
Not applicable to Semi-Annual Report.
Item 3. Audit Committee Financial Expert.
Not applicable to Semi-Annual Report.
Item 4. Principal Accountant Fees and Services.
Not applicable to Semi-Annual Report.
Item 5. Audit Committee of Listed Registrants.
Not applicable.
Item 6. Schedule of Investments
Schedule included as part of the report to shareholders filed under Item 1 of this Form.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies.
Not applicable.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders.
The Trust does not normally hold shareholder meetings. There have been no changes to the Trust’s procedures during the period covered by this report.
Item 11. Controls and Procedures.
(a) The Trust’s principal executive officer and principal financial officer determined that the Trust’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the “Act”)) are effective, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the Act and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 within 90 days of the date of this report. There were no significant changes in the Trust’s internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation. The officers identified no significant deficiencies or material weaknesses.
(b) There were no changes in the Trust’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Trust’s internal control over financial reporting.
Item 12. Exhibits.
(a)(1) Not applicable to semi-annual report.
(a)(2) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Act.
(b) Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Act.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.
Madison Funds
/s/ Kevin S. Thompson
Kevin S. Thompson, Chief Legal Officer
Date: June 22, 2017
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
/s/ Katherine L. Frank
Katherine L. Frank, Principal Executive Officer
Date: June 22, 2017
/s/ Greg Hoppe
Greg Hoppe, Principal Financial Officer
Date: June 22, 2017
