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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, 2018
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. Reports to Stockholders
Semi-annual Report
(unaudited)
April 30, 2018
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
| Madison Funds | April 30, 2018 |
| | | Page |
| Review of Period | | |
Allocation Funds Summary | | 3 |
Conservative Allocation Fund | | 3 |
Moderate Allocation Fund | | 3 |
Aggressive Allocation Fund | | 3 |
Government Money Market Fund | | 4 |
Tax-Free Virginia Fund | | 4 |
Tax-Free National Fund | | 4 |
High Quality Bond Fund | | 5 |
Core Bond Fund | | 5 |
Corporate Bond Fund | | 6 |
High Income Fund | | 6 |
Diversified Income Fund | | 6 |
Covered Call & Equity Income Fund | | 7 |
Dividend Income Fund | | 7 |
Large Cap Value Fund | | 8 |
Investors Fund | | 8 |
Mid Cap Fund | | 9 |
Small Cap Fund | | 9 |
International Stock Fund | | 9 |
Notes to Review of Period | | 11 |
| Portfolios of Investments | | |
Conservative Allocation Fund | | 12 |
Moderate Allocation Fund | | 12 |
Aggressive Allocation Fund | | 13 |
Government Money Market Fund | | 13 |
Tax-Free Virginia Fund | | 14 |
Tax-Free National Fund | | 15 |
High Quality Bond Fund | | 16 |
Core Bond Fund | | 17 |
Corporate Bond Fund | | 20 |
High Income Fund | | 21 |
Diversified Income Fund | | 22 |
Covered Call & Equity Income Fund | | 25 |
Dividend Income Fund | | 27 |
Large Cap Value Fund | | 27 |
Investors Fund | | 28 |
Mid Cap Fund | | 28 |
Small Cap Fund | | 29 |
International Stock Fund | | 30 |
| Financial Statements | | |
Statements of Assets and Liabilities | | 32 |
Statements of Operations | | 34 |
Statements of Changes in Net Assets | | 36 |
Financial Highlights | | 41 |
| Notes to Financial Statements | | 54 |
| Other Information | | 63 |
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 funds.
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, 2018 |
| |
| Review of Period (unaudited) |
After near perfection for most of 2017, the equity markets assumed a more typical behavior in the first six months of the Madison Fund’s fiscal year as volatility spiked in February and March, erasing the nearly 6% gain of January. The return of volatility was triggered in part by a rise in bond yields, which in turn meant setbacks for bond investors. Despite the bumpy ride, equity investors saw relatively modest gains during the last six months as the S&P 500® Index advanced 3.82%, the Russell Midcap® Index returned 3.69% and the MSCI EAFE® Index (net) provided 3.41%. Bond investors saw losses as the Bloomberg Barclays U.S. Aggregate Index fell -1.87% for the six month period while the Bloomberg Barclays U.S. Corporate Bond Index returned -2.48%.
Calendar 2018 began on a positive note, as equity indices set new records on an almost daily basis in the month of January. Optimism over tax-reform, along with acceleration of global economic activity, drove investors to shed risk aversion and bid stocks higher. Indeed, signs of a speculative mood were appearing daily as cryptocurrencies (e.g. bitcoin) seemed to dominate the financial news. Unsuspecting investors also piled into exchange-traded vehicles that bet record-low levels of stock market volatility seen in 2017 would continue. As volatility measured by the CBOE VIX Index spiked in February, a number of these exchange traded instruments lost nearly all their value, helping to magnify the market swings. While volatility in the first quarter seemed exceptionally high compared to the recent past, we would point out that these levels are actually typical and only seem high due to the long period of low volatility experienced in calendar 2017.
Fundamental factors also influenced results during the period as inflation and rising interest rates had a significant impact in driving volatility back into the equity market and producing negative returns in most bond maturities. The yield on the ten-year Treasury went from 2.37% to 2.97% before finishing the period at 2.95%. This flirtation with the 3% 10-year Treasury level was troubling to bond and stock markets alike. Inflation concerns persisted, partly driven by an advance in hourly wages and the Fed’s preferred measure of inflation approaching the target 2% level. Given the tight labor market, a weakening U.S. dollar and increasing risk of protectionist measures, we believe that ongoing price pressures in consumer goods and services are likely. The Federal Reserve (Fed) raised short-term rates by a quarter percent two times during the period, with the target Federal Funds range rising from 1.00%-1.25% to 1.50%-1.75%. Two more increases look likely this year, although a third increase is possible depending on the future path of economic growth and inflation. Reflecting increased government borrowing, it would not be surprising to see long-term interest rates continue moving upward – making bond yields a bit more attractive.
Despite significant swings in the stock market, its’ resilience has been impressive. As the bull market celebrated the ninth anniversary of its lift-off from the financial crisis lows of March 2009, a pull-back was not surprising. We’ve opined the past several quarters that, based upon history, a pull-back was long overdue and healthy for a market that was showing signs of euphoria. The key issue is whether this is simply a stock market correction (typically considered a decline of 10% or greater) or the start of a full-fledged “bear market” (typically a decline of 20% or greater). The latter is usually foreshadowed by an economic contraction (recession). For now, the economy appears strong, underpinned by increasing global growth and strong corporate profits. In fact, the International Monetary Fund recently raised its 2018 global growth forecast to greater than 3.9% and the latest earnings estimates for the S&P 500® are calling for greater than 25% growth in earnings for 2018.
As we’ve espoused in previous letters, timing the market is nearly impossible to do with any degree of consistency and a mistake can wreak havoc on investor returns. With this in mind, we continue to believe that stocks of lower-risk, higher-quality companies, along with shorter-duration, higher-quality bonds, will allow investors to participate in the market while providing some shelter as we experience more typical market volatility.
Madison Funds | Review of Period (unaudited) - continued | April 30, 2018
The Madison Conservative Allocation, Moderate Allocation and Aggressive Allocation Funds invest primarily in shares of registered investment companies (the “Underlying Funds”). The funds are diversified among a number of asset classes and their allocation among Underlying Funds are 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 0.12% for the period, matching the Conservative Allocation Fund Custom Index return of 0.12%. The fund underperformed its peers as measured by the Morningstar Conservative Allocation Category, which advanced 0.48%. For more up-to-date information about 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 4/30/18 |
| |
| Alternative Funds | | 2.8% |
| Bond Funds | | 63.6% |
| Collateral for Securities on Loan | | 0.5% |
| Foreign Stock Funds | | 10.1% |
| Money Market Funds | | 2.1% |
| Stock Funds | | 20.9% |
| Net Other Assets and Liabilities | | 0.0% |
| TOP TEN HOLDINGS AS A PERCENTAGE OF NET ASSETS AS OF 4/30/18 |
| |
| Madison Core Bond Fund Class Y | | 19.9% |
| iShares TIPS Bond Fund ETF | | 9.1% |
| Madison Corporate Bond Fund Class Y | | 6.9% |
| Vanguard Short-Term Treasury ETF | | 6.6% |
| Madison Dividend Income Fund Class Y | | 6.3% |
| Madison Investors Fund Class Y | | 6.3% |
| Virtus Seix Floating Rate High Income Fund, Class R6 | | 5.1% |
| Baird Aggregate Bond Fund Institutional Shares | | 5.0% |
| Vanguard FTSE All-World ex-U.S. ETF | | 4.8% |
| iShares 20+ Year Treasury Bond ETF | | 4.1% |
| 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 1.17% for the period, while its blended benchmark, the Moderate Allocation Fund Custom Index, returned 1.52%. The fund lagged its Morningstar peer group as the Moderate Allocation Category returned an average of 1.30%. For more up-to-date information about 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 4/30/18 |
| |
| Alternative Funds | | 3.5% |
| Bond Funds | | 39.1% |
| Collateral for Securities on Loan | | 0.6% |
| Foreign Stock Funds | | 18.0% |
| Money Market Funds | | 1.8% |
| Stock Funds | | 37.0% |
| Net Other Assets and Liabilities | | 0.0% |
| TOP TEN HOLDINGS AS A PERCENTAGE OF NET ASSETS AS OF 4/30/18 |
| |
| Madison Core Bond Fund Class Y | | 14.4% |
| Madison Dividend Income Fund Class Y | | 11.1% |
| Madison Investors Fund Class Y | | 11.1% |
| Vanguard FTSE All-World ex-U.S. ETF | | 6.5% |
| iShares TIPS Bond Fund ETF | | 5.0% |
| Vanguard Short-Term Treasury ETF | | 4.5% |
| Vanguard Growth ETF | | 4.4% |
| iShares Core S&P Mid-Cap ETF | | 4.0% |
| iShares 20+ Year Treasury Bond ETF | | 3.9% |
| iShares MSCI Eurozone ETF | | 3.2% |
| 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 1.89% for the period, trailing its blended benchmark, the Aggressive Allocation Fund Custom Index, which returned 2.62%. The fund modestly underperformed its Morningstar Aggressive Allocation Category peer group, which averaged a 1.98% return. For more up-to-date information about the fund, including a quarterly investment letter from the portfolio managers, please visit www.madisonfunds.com.
Madison Funds | Review of Period (unaudited) - continued | April 30, 2018
| PORTFOLIO ALLOCATION AS A PERCENTAGE OF NET ASSETS AS OF 4/30/18 |
| |
| Alternative Funds | | 4.5% |
| Bond Funds | | 19.3% |
| Collateral for Securities on Loan | | 0.8% |
| Foreign Stock Funds | | 24.8% |
| Money Market Funds | | 2.3% |
| Stock Funds | | 48.6% |
| Net Other Assets and Liabilities | | (0.3)% |
| TOP TEN HOLDINGS AS A PERCENTAGE OF NET ASSETS AS OF 4/30/18 |
| |
| Madison Investors Fund Class Y | | 12.3% |
| Madison Dividend Income Fund Class Y | | 12.2% |
| Vanguard FTSE All-World ex-U.S. ETF | | 8.5% |
| Madison Core Bond Fund Class Y | | 8.1% |
| Vanguard Growth ETF | | 7.2% |
| iShares Core S&P Mid-Cap ETF | | 6.0% |
| Madison Large Cap Value Fund Class Y | | 4.4% |
| iShares MSCI Eurozone ETF | | 4.1% |
| Vanguard FTSE All World ex-U.S. Small-Cap ETF | | 4.0% |
| PowerShares Optimum Yield Diversified Commodity Strategy No. K-1 Portfolio | | 3.5% |
| MADISON GOVERNMENT MONEY MARKET FUND |
| |
| INVESTMENT STRATEGY HIGHLIGHTS |
The Madison Government Money Market 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 0.39% for the period, compared to a 0.67% return on the fund’s 90-day U.S. Treasury Bill benchmark. For more up-to-date information about 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 4/30/18 |
| |
| Fannie Mae | | 27.7% |
| Federal Farm Credit Bank | | 1.5% |
| Federal Home Loan Bank | | 35.4% |
| Freddie Mac | | 22.0% |
| Money Market Funds | | 4.0% |
| U.S. Treasury Notes | | 9.8% |
| Net Other Assets and Liabilities | | (0.4)% |
| 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 (1.51)% for the period. The ICE Bank of America Merrill Lynch 1-22 year Municipal Securities Index returned (1.14)%. The fund’s Morningstar peer group, the Municipal Single State Intermediate category returned (1.21)%. For more up-to-date information about 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 4/30/18 |
| |
| Development | | 4.2% |
| Education | | 12.8% |
| Facilities | | 4.0% |
| General | | 11.4% |
| General Obligation | | 27.9% |
| Medical | | 6.5% |
| Multifamily Housing | | 6.1% |
| Power | | 4.3% |
| Transportation | | 7.1% |
| Utilities | | 1.5% |
| Water | | 12.7% |
| Net Other Assets and Liabilities | | 1.5% |
| TOP TEN HOLDINGS AS A PERCENTAGE OF NET ASSETS AS OF 4/30/18 |
| |
| Northern Virginia Transportation Authority, 5.0%, 6/1/30 | | 4.1% |
| Fairfax County Redevelopment & Housing Authority, 4.750%, 10/1/36 | | 3.5% |
| City of Portsmouth VA, 5.0%, 2/1/31 | | 2.9% |
| 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 | | 2.6% |
| Virginia College Building Authority, 5.0%, 2/1/23 | | 2.6% |
| County of Henrico VA Water & Sewer Revenue, 4.0%, 5/1/32 | | 2.5% |
| Loudoun County Economic Development Authority Revenue, 3.0%, 12/1/29 | | 2.5% |
| Norfolk Economic Development Authority, 5.0%, 11/1/29 | | 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 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 (1.92)% for the period. The ICE Bank of America Merrill Lynch 1-22 year Municipal Securities Index returned (1.14)%, while the fund’s Morningstar peer group, the Municipal National Long category, returned (0.64)%. For more up-to-date information about the fund, including a quarterly investment letter from the portfolio managers, please visit www.madisonfunds.com.
Madison Funds | Review of Period(unaudited) - continued | April 30, 2018
| STATE ALLOCATION AS A PERCENTAGE OF NET ASSETS AS OF 4/30/18 |
| |
| Alabama | | 1.3% |
| Arkansas | | 0.7% |
| Colorado | | 2.0% |
| Delaware | | 1.6% |
| Florida | | 18.4% |
| Georgia | | 3.5% |
| Hawaii | | 2.2% |
| Illinois | | 2.4% |
| Indiana | | 3.4% |
| Iowa | | 3.1% |
| Kansas | | 3.5% |
| Maryland | | 2.9% |
| Michigan | | 3.7% |
| Missouri | | 6.6% |
| New Jersey | | 5.2% |
| New Mexico | | 1.9% |
| New York | | 3.5% |
| North Carolina | | 3.2% |
| Ohio | | 2.4% |
| South Carolina | | 6.6% |
| Tennessee | | 0.5% |
| Texas | | 7.6% |
| Utah | | 1.4% |
| Virginia | | 6.9% |
| Washington | | 1.0% |
| Wisconsin | | 3.1% |
| Net Other Assets and Liabilities | | 1.4% |
| TOP TEN HOLDINGS AS A PERCENTAGE OF NET ASSETS AS OF 4/30/18 |
| |
| City of Margate FL, General Obligation, 5.0%, 7/1/25 | | 3.8% |
| Anderson County School District No. 1, General Obligation, 5.0%, 3/1/25 | | 3.5% |
| Maple School District, General Obligation, 5.0%, 4/1/24 | | 3.1% |
| City of Rockville MD, General Obligation, 5.0%, 6/1/24 | | 2.9% |
| City of Port St. Lucie FL Utility System Revenue, 5.0%, 9/1/27 | | 2.8% |
| City of Wichita KS, General Obligation, 5.0%, 12/1/24 | | 2.5% |
| County of Miami-Dade FL, 5.0%, 3/1/25 | | 2.5% |
| Orlando Utilities Commission, 5.0%, 10/1/22 | | 2.5% |
| Hampton Roads Sanitation District, 5.0%, 10/1/36 | | 2.4% |
| Missouri State Board of Public Buildings, 4.0%, 4/1/25 | | 2.4% |
| 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 (1.48)% for the period, beating the fund’s benchmark, the Bloomberg Barclays U.S. Intermediate Government Credit A+ Index which returned (1.63)%. The Morningstar Short-Term Bond peer group returned (0.52)% for the period. For more up-to-date information about 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 4/30/18 |
| |
| Consumer Discretionary | | 6.3% |
| Consumer Staples | | 1.6% |
| Energy | | 1.6% |
| Fannie Mae | | 4.0% |
| Financials | | 14.3% |
| Freddie Mac | | 4.2% |
| Health Care | | 3.1% |
| Industrials | | 0.5% |
| Information Technology | | 8.8% |
| Money Market Funds | | 0.8% |
| Real Estate | | 1.9% |
| U.S. Treasury Notes | | 52.3% |
| Net Other Assets and Liabilities | | 0.6% |
| TOP TEN HOLDINGS AS A PERCENTAGE OF NET ASSETS AS OF 4/30/18 |
| |
| U.S. Treasury Note, 2.625%, 11/15/20 | | 4.8% |
| U.S. Treasury Note, 2.500%, 8/15/23 | | 4.7% |
| U.S. Treasury Note, 2.125%, 5/15/25 | | 4.5% |
| U.S. Treasury Note, 2.375%, 5/15/27 | | 4.5% |
| U.S. Treasury Note, 3.625%, 2/15/20 | | 4.3% |
| Freddie Mac, 2.375%, 1/13/22 | | 4.2% |
| U.S. Treasury Note, 1.125%, 12/31/19 | | 4.1% |
| Fannie Mae, 1.375%, 10/7/21 | | 4.0% |
| U.S. Treasury Note, 1.625%, 5/31/23 | | 4.0% |
| U.S. Treasury Note, 3.125%, 5/15/19 | | 3.5% |
| 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 (2.04)% for the period, trailing the fund’s benchmark, the Bloomberg Barclays U.S. Aggregate Bond Index, which returned (1.87)%. The Morningstar Intermediate-Term Bond peer group returned (1.71)% for the period. For more up-to-date information about 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 4/30/18 |
| |
| Asset Backed Securities | | 5.1% |
| Collateral for Securities on Loan | | 0.4% |
| Collateralized Mortgage Obligations | | 3.0% |
| Commercial Mortgage-Backed Securities | | 2.8% |
| Corporate Notes and Bonds | | 38.9% |
| Long Term Municipal Bonds | | 5.9% |
| Money Market Funds | | 2.7% |
| Mortgage Backed Securities | | 20.6% |
| U.S. Government and Agency Obligations | | 19.8% |
| Net Other Assets and Liabilities | | 0.8% |
| TOP TEN HOLDINGS AS A PERCENTAGE OF NET ASSETS AS OF 4/30/18 |
| |
| U.S. Treasury Note, 1.750%, 9/30/22 | | 2.0% |
| U.S. Treasury Note, 3.125%, 5/15/21 | | 2.0% |
| U.S. Treasury Note, 3.625%, 8/15/19 | | 1.9% |
| U.S. Treasury Note, 2.625%, 11/15/20 | | 1.8% |
| U.S. Treasury Note, 2.125%, 3/31/24 | | 1.4% |
| U.S. Treasury Bond, 6.625%, 2/15/27 | | 1.4% |
| U.S. Treasury Bond, 4.500%, 5/15/38 | | 1.3% |
| U.S. Treasury Note, 2.0%, 10/31/21 | | 1.3% |
| County of Palm Beach FL Revenue, 5.0%, 11/1/33 | | 1.1% |
| East Baton Rouge Sewerage Commission Revenue, 6.087%, 2/1/45 | | 1.1% |
Madison Funds | Review of Period (unaudited) - continued | April 30, 2018
| 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 Bond 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) returned (2.55)% for the period, while its benchmark, the Bloomberg Barclays U.S. Corporate Bond Index returned (2.48)%. The fund lagged its peer group, the Morningstar Corporate Bond category, which averaged a (2.40)% return. For more up-to-date information about 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 4/30/18 |
| |
| Consumer Discretionary | | 13.3% |
| Consumer Staples | | 1.4% |
| Energy | | 12.9% |
| Financials† | | 33.7% |
| Health Care | | 5.7% |
| Industrials | | 8.0% |
| Information Technology | | 6.2% |
| Long Term Municipal Bonds | | 2.0% |
| Materials | | 4.0% |
| Money Market Funds | | 2.8% |
| Real Estate | | 3.8% |
| Telecommunication Services | | 5.0% |
| Utilities | | 0.4% |
| Net Other Assets and Liabilities | | 0.8% |
| †Financials includes securities in the following industries: Banks, Diversified Financial Services and Insurance. |
| TOP TEN HOLDINGS AS A PERCENTAGE OF NET ASSETS AS OF 4/30/18 |
| |
| Valero Energy Corp., 6.625%, 6/15/37 | | 2.1% |
| Comcast Corp., 6.450%, 3/15/37 | | 1.8% |
| Affiliated Managers Group Inc., 4.250%, 2/15/24 | | 1.4% |
| Huntington National Bank/The, 2.200%, 4/1/19 | | 1.4% |
| Packaging Corp. of America, 3.650%, 9/15/24 | | 1.4% |
| Prudential Financial Inc., 3.500%, 5/15/24 | | 1.4% |
| KeyCorp, 5.100%, 3/24/21 | | 1.2% |
| Marathon Petroleum Corp., 5.125%, 3/1/21 | | 1.2% |
| Regions Financial Corp., 3.200%, 2/8/21 | | 1.2% |
| PNC Bank NA, 2.450%, 7/28/22 | | 1.1% |
| 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 (1.17)% during the period, trailing the ICE Bank of America Merrill Lynch U.S. High Yield Constrained Index’s (0.23)% return. The fund lagged its Morningstar High Yield Bond category peer group, which returned (0.28)%. For more up-to-date information about 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 4/30/18 |
| |
| Collateral for Securities on Loan | | 8.9% |
| Consumer Discretionary | | 19.2% |
| Consumer Staples | | 8.7% |
| Energy | | 17.2% |
| Financials | | 11.2% |
| Health Care | | 5.5% |
| Industrials | | 14.0% |
| Information Technology | | 2.4% |
| Materials | | 3.6% |
| Money Market Funds | | 7.6% |
| Real Estate | | 1.8% |
| Telecommunication Services | | 4.1% |
| Utilities | | 3.4% |
| Net Other Assets and Liabilities | | (7.6)% |
| TOP TEN HOLDINGS AS A PERCENTAGE OF NET ASSETS AS OF 4/30/18 |
| |
| State Street Navigator Securities Lending Government Money Market Portfolio | | 8.9% |
| Unit Corp., 6.625%, 5/15/21 | | 2.8% |
| Rayonier AM Products Inc., 5.500%, 6/1/24 | | 2.5% |
| DISH DBS Corp., 6.750%, 6/1/21 | | 2.3% |
| Outfront Media Capital LLC/Outfront Media Capital Corp., 5.625%, 2/15/24 | | 2.3% |
| Donnelley Financial Solutions Inc., 8.250%, 10/15/24 | | 2.0% |
| Diebold Nixdorf Inc., 8.500%, 4/15/24 | | 1.9% |
| Iron Mountain Inc., 5.750%, 8/15/24 | | 1.8% |
| Jonah Energy LLC/Jonah Energy Finance Corp., 7.250%, 10/15/25 | | 1.8% |
| Murphy Oil USA Inc., 5.625%, 5/1/27 | | 1.8% |
| 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 may constitute up to 70% of the fund’s assets, real estate securities may constitute up to 25% of the fund’s assets, foreign stocks and bonds may 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 at NAV) returned 0.35% for the period, lagging its blended index (50% ICE Bank of America Merrill Lynch U.S. Corporate, Government and Mortgage Index and 50% S&P 500®) which returned 1.03%. The fund’s designated Morningstar peer group, the Moderate Allocation category, averaged a 1.30% return for the period. For more up-to-date information about the fund, including a quarterly investment letter from the portfolio managers, please visit www.madisonfunds.com.
Madison Funds | Review of Period (unaudited) - continued | April 30, 2018
| PORTFOLIO ALLOCATION AS A PERCENTAGE OF NET ASSETS AS OF 4/30/18 |
| |
| Asset Backed Securities | | 1.6% |
| Collateral for Securities on Loan | | 0.1% |
| Collateralized Mortgage Obligations | | 1.1% |
| Commercial Mortgage-Backed Securities | | 0.7% |
| Common Stocks | | 63.0% |
| Corporate Notes and Bonds | | 13.7% |
| Long Term Municipal Bonds | | 2.2% |
| Money Market Funds | | 2.4% |
| Mortgage Backed Securities | | 7.2% |
| U.S. Government and Agency Obligations | | 7.8% |
| Net Other Assets and Liabilities | | 0.2% |
| TOP TEN HOLDINGS AS A PERCENTAGE OF NET ASSETS AS OF 4/30/18 |
| |
| Exxon Mobil Corp. | | 2.5% |
| Cisco Systems Inc. | | 2.4% |
| Praxair Inc. | | 2.3% |
| CME Group Inc. | | 2.1% |
| Microsoft Corp. | | 2.0% |
| Johnson & Johnson | | 1.9% |
| U.S. Bancorp | | 1.9% |
| Schlumberger Ltd. | | 1.8% |
| United Parcel Service Inc., Class B | | 1.8% |
| United Technologies Corp. | | 1.7% |
| MADISON COVERED CALL & EQUITY INCOME FUND |
| |
| INVESTMENT STRATEGY HIGHLIGHTS |
The Madison Covered Call & 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 manager’s ongoing assessment of the attractiveness of writing call options on the fund’s stock holdings. In addition to providing income, covered call writing helps to reduce the volatility (and risk profile) of the fund by providing downside protection.
The Madison Covered Call & Equity Income Fund (Class Y) returned 4.06% for the period, outperforming its covered call benchmark, the CBOE S&P 500 BuyWrite® Index (BXM) which returned 1.93%. The fund also outperformed the Morningstar Option Writing category’s return of (0.56)%. For more up-to-date information about the fund, including a quarterly investment letter from the portfolio managers, please visit www.madisonfunds.com.
| PORTFOLIO ALLOCATION AS A PERCENTAGE OF TOTAL INVESTMENTS AS OF 4/30/18 |
| |
| Consumer Discretionary | | 7.7% |
| Consumer Staples | | 1.9% |
| Energy | | 11.0% |
| Financials | | 11.3% |
| Health Care | | 11.7% |
| Industrials | | 6.8% |
| Information Technology | | 15.9% |
| Materials | | 10.1% |
| Money Market Funds | | 5.6% |
| Real Estate | | 3.2% |
| Telecommunication Services | | 5.0% |
| Utilities | | 3.0% |
| Exchange Traded Funds | | 6.8% |
| TOP TEN HOLDINGS AS A PERCENTAGE OF NET ASSETS AS OF 4/30/18 |
| |
| T-Mobile U.S. Inc. | | 5.0% |
| Baxter International Inc. | | 3.8% |
| PowerShares DB Gold Fund | | 3.5% |
| Microsoft Corp. | | 3.4% |
| Alphabet Inc., Class C | | 3.2% |
| DowDuPont Inc. | | 3.2% |
| Weyerhaeuser Co. | | 3.2% |
| AES Corp. | | 3.0% |
| Ciena Corp. | | 3.0% |
| Baker Hughes, a GE Co. | | 2.9% |
| 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 and trade on the high side of the company’s historical relative dividend yield. 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 1.86% for the period, underperforming its benchmark, the S&P 500® Index, which advanced 3.82%. The fund lagged its peer group, as the Morningstar Large Value category advanced 2.51%. For more up-to-date information about 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 4/30/18 |
| |
| Consumer Discretionary | | 10.7% |
| Consumer Staples | | 9.3% |
| Energy | | 9.4% |
| Financials | | 17.1% |
| Health Care | | 13.2% |
| Industrials | | 13.7% |
| Information Technology | | 12.7% |
| Materials | | 6.0% |
| Money Market Funds | | 1.2% |
| Telecommunication Services | | 2.5% |
| Utilities | | 3.6% |
| Net Other Assets and Liabilities | | 0.6% |
| TOP TEN HOLDINGS AS A PERCENTAGE OF NET ASSETS AS OF 4/30/18 |
| |
| Exxon Mobil Corp. | | 3.9% |
| Cisco Systems Inc. | | 3.5% |
| Praxair Inc. | | 3.4% |
| CME Group Inc. | | 3.2% |
| Microsoft Corp. | | 3.2% |
| Johnson & Johnson | | 2.9% |
| US Bancorp | | 2.9% |
| Schlumberger Ltd. | | 2.8% |
| Chevron Corp. | | 2.7% |
| United Parcel Service Inc., Class B | | 2.7% |
Madison Funds | Review of Period (unaudited) - continued | April 30, 2018
| 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 A) returned 5.96% for the period, outperforming its benchmark, the Russell 1000® Value Index, which returned 1.94%. The fund also beat its Morningstar peer group, Large Cap Value category, which showed a 2.51% return. For more up-to-date information about 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 4/30/18 |
| |
| Consumer Staples | | 5.1% |
| Energy | | 15.6% |
| Financials | | 22.9% |
| Health Care | | 6.4% |
| Industrials | | 10.7% |
| Information Technology | | 6.7% |
| Materials | | 12.2% |
| Money Market Funds | | 5.5% |
| Real Estate | | 4.1% |
| Telecommunication Services | | 3.7% |
| Utilities | | 7.5% |
| Net Other Assets and Liabilities | | (0.4)% |
| TOP TEN HOLDINGS AS A PERCENTAGE OF NET ASSETS AS OF 4/30/18 |
| |
| EOG Resources Inc. | | 5.3% |
| Halliburton Co. | | 4.5% |
| Bank of New York Mellon Corp./The | | 4.4% |
| JPMorgan Chase & Co. | | 4.4% |
| Textron Inc. | | 4.3% |
| Baxter International Inc. | | 4.2% |
| Weyerhaeuser Co. | | 4.1% |
| Bank of America Corp. | | 4.0% |
| Rio Tinto PLC | | 4.0% |
| FedEx Corp. | | 3.9% |
| 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, high profitability metrics, and have maintained proportionately low levels of debt. A rigorous analytical 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 exceeded, the fundamental business prospects for the company have materially deteriorated, or the portfolio managers find a more attractive alternative.
The Madison Investors Fund (Class Y) returned 2.30% for the period, underperforming its benchmark, the S&P 500® Index, which advanced 3.82%. This performance lagged its peer group, as the Morningstar Large Growth category returned 6.36%. For more up-to-date information about 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 4/30/18 |
| |
| Consumer Discretionary | | 20.4% |
| Consumer Staples | | 4.2% |
| Financials | | 16.1% |
| Health Care | | 15.9% |
| Industrials | | 6.4% |
| Information Technology | | 20.8% |
| Materials | | 9.2% |
| Money Market Funds | | 6.0% |
| Real Estate | | 3.5% |
| Net Other Assets and Liabilities | | (2.5)% |
| TOP TEN HOLDINGS AS A PERCENTAGE OF NET ASSETS AS OF 4/30/18 |
| |
| TJX Cos. Inc./The | | 5.4% |
| PPG Industries Inc. | | 5.2% |
| US Bancorp | | 4.7% |
| Jacobs Engineering Group Inc. | | 4.6% |
| Danaher Corp. | | 4.2% |
| Omnicom Group Inc. / Omnicom Capital Inc. | | 4.2% |
| Praxair Inc. | | 4.0% |
| Henry Schein Inc. | | 3.9% |
| Novartis AG | | 3.9% |
| Berkshire Hathaway Inc., Class B | | 3.8% |
Madison Funds | Review of Period (unaudited) - continued | April 30, 2018
| 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 midcap 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 3.78% for the period, outperforming its benchmark Russell Midcap® Index’s 3.69% return. The fund trailed its peer group, the Morningstar Mid-Cap Growth category, whose average return was 5.50%. For more up-to-date information about 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 4/30/18 |
| |
| Consumer Discretionary | | 23.0% |
| Consumer Staples | | 1.1% |
| Energy | | 0.9% |
| Financials | | 23.4% |
| Health Care | | 13.1% |
| Industrials | | 16.1% |
| Information Technology | | 6.3% |
| Materials | | 9.0% |
| Money Market Funds | | 5.0% |
| Real Estate | | 2.7% |
| Net Other Assets and Liabilities | | (0.6)% |
| TOP TEN HOLDINGS AS A PERCENTAGE OF NET ASSETS AS OF 4/30/18 |
| |
| Copart Inc. | | 5.9% |
| Markel Corp. | | 5.2% |
| Arch Capital Group Ltd. | | 4.6% |
| Liberty Broadband Corp., Class C | | 4.4% |
| CDW Corp. | | 4.3% |
| Brown & Brown Inc. | | 4.1% |
| Henry Schein Inc. | | 3.9% |
| CarMax Inc. | | 3.8% |
| Expeditors International of Washington Inc. | | 3.8% |
| IHS Markit Ltd. | | 3.8% |
| 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 (0.44)% for the period, underperforming both the Russell 2000® Index’s 3.27% return and the Russell 2000® Value Index’s 0.94% return. The fund also trailed its peer group average, as the Morningstar Small Blend category averaged a return of 1.79%. For more up-to-date information about 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 4/30/18 |
| |
| Collateral for Securities on Loan | | 1.8% |
| Consumer Discretionary | | 3.9% |
| Consumer Staples | | 3.4% |
| Energy | | 4.7% |
| Financials | | 20.5% |
| Health Care | | 5.2% |
| Industrials† | | 33.5% |
| Information Technology | | 7.6% |
| Materials | | 7.2% |
| Money Market Funds | | 4.0% |
| Real Estate | | 8.6% |
| Utilities | | 1.4% |
| Net Other Assets and Liabilities | | (1.8)% |
| †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 4/30/18 |
| |
| First Midwest Bancorp Inc. | | 2.6% |
| TriMas Corp. | | 2.6% |
| Belden Inc. | | 2.5% |
| FTI Consulting Inc. | | 2.4% |
| Mueller Industries Inc. | | 2.3% |
| Albany International Corp. | | 2.2% |
| WNS Holdings Ltd. | | 2.2% |
| MB Financial Inc. | | 2.1% |
| Northwest Bancshares Inc. | | 2.1% |
| PotlatchDeltic Corp. | | 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 they believe 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 the portfolio managers believe 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 2.86% for the period, underperforming the 3.41% return of the MSCI EAFE® Index (net). The fund outperformed its peer group, with the Morningstar Foreign Large Blend category averaging a 2.41% return. For more up-to-date information about the fund,
Madison Funds | Review of Period (unaudited) - continued | April 30, 2018
including a quarterly investment letter from the portfolio managers, please visit www.madisonfunds.com.
| GEOGRAPHICAL ALLOCATION AS A PERCENTAGE OF NET ASSETS AS OF 4/30/18 |
| |
| United Kingdom | | 20.3% |
| Japan | | 17.9% |
| France | | 12.0% |
| Switzerland | | 6.4% |
| Ireland | | 5.7% |
| Germany | | 5.3% |
| Canada | | 4.4% |
| United States | | 3.3% |
| Australia | | 3.2% |
| Sweden | | 3.2% |
| Netherlands | | 3.0% |
| Norway | | 2.8% |
| Singapore | | 2.4% |
| Denmark | | 1.9% |
| Belgium | | 1.5% |
| Finland | | 1.5% |
| Spain | | 1.4% |
| Taiwan | | 1.4% |
| India | | 0.9% |
| Turkey | | 0.9% |
| Brazil | | 0.8% |
| Luxembourg | | 0.8% |
| Other Net Assets | | (1.0)% |
| SECTOR ALLOCATION AS A PERCENTAGE OF NET ASSETS AS OF 4/30/18 |
| |
| Collateral for Securities on Loan | | 1.6% |
| Consumer Discretionary | | 16.5% |
| Consumer Staples | | 9.1% |
| Energy | | 7.8% |
| Financials | | 18.0% |
| Health Care | | 8.1% |
| Industrials | | 16.2% |
| Information Technology | | 7.7% |
| Materials | | 5.2% |
| Money Market Funds | | 1.7% |
| Real Estate | | 2.5% |
| Telecommunication Services | | 5.2% |
| Utilities | | 1.4% |
| Net Other Assets and Liabilities | | (1.0)% |
| TOP TEN HOLDINGS AS A PERCENTAGE OF NET ASSETS AS OF 4/30/18 |
| |
| Prudential PLC | | 3.5% |
| Royal Dutch Shell PLC | | 3.3% |
| Don Quijote Holdings Co. Ltd. | | 2.8% |
| Novartis AG | | 2.8% |
| BHP Billiton PLC | | 2.6% |
| SAP SE | | 2.6% |
| Daiwa House Industry Co. Ltd. | | 2.5% |
| Ferguson PLC | | 2.4% |
| Shire PLC | | 2.4% |
| British American Tobacco PLC | | 2.3% |
Madison Funds | Review of Period (unaudited) - concluded | April 30, 2018
Notes to Review of Period
BENCHMARK DESCRIPTIONS
Allocation Fund Indexes*
The Conservative Allocation Fund Custom Index consists of 65% Bloomberg Barclays US Aggregate Bond Index, 24.5% Russell 3000® Index and 10.5% MSCI ACWI ex-US Index. See market index descriptions below.
The Moderate Allocation Fund Custom Index consists of 42% Russell 3000® Index, 40% Bloomberg Barclays US Aggregate Bond Index and 18% MSCI ACWI ex-US 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 ICE Bank of America Merrill Lynch 1-22 year Municipal Securities 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 ICE 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 ICE Bank of America Merrill Lynch U.S. High Yield 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. 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+ 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 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 the 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).
© 2018 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, 2018 |
| |
| |
| Madison Conservative Allocation Fund Portfolio of Investments (unaudited) |
| | | | Shares | | Value (Note 2) |
| | | | | | |
| INVESTMENT COMPANIES - 99.5% | | | | | | | |
| | | | | | | | |
| Alternative Funds - 2.8% | | | | | | | |
| PowerShares Optimum Yield Diversified Commodity Strategy No. K-1 Portfolio | | | 69,799 | | $ | 1,286,396 | |
| SPDR Gold Shares* | | | 5,734 | | | 714,399 | |
| | | | | | | |
| | | | | | | 2,000,795 | |
| | | | | | | | |
| Bond Funds - 63.6% | | | | | | | |
| Baird Aggregate Bond Fund Institutional Shares | | | 337,393 | | | 3,556,126 | |
| iShares 20+ Year Treasury Bond ETF | | | 24,705 | | | 2,942,366 | |
| iShares 7-10 Year Treasury Bond ETF | | | 21,115 | | | 2,147,396 | |
| iShares TIPS Bond Fund ETF | | | 57,748 | | | 6,503,002 | |
| Madison Core Bond Fund Class Y (A) | | | 1,475,807 | | | 14,271,056 | |
| Madison Corporate Bond Fund Class Y (A) | | | 446,801 | | | 4,959,487 | |
| Vanguard Short-Term Corporate Bond ETF | | | 36,771 | | | 2,874,021 | |
| Vanguard Short-Term Treasury ETF | | | 78,939 | | | 4,726,079 | |
| Virtus Seix Floating Rate High Income Fund, Class R6 | | | 421,874 | | | 3,682,960 | |
| | | | | | | |
| | | | | | | 45,662,493 | |
| | | | | | | | |
| Foreign Stock Funds - 10.1% | | | | | | | |
| iShares MSCI Eurozone ETF | | | 25,412 | | | 1,126,514 | |
| iShares MSCI Japan ETF | | | 2,972 | | | 180,222 | |
| Vanguard FTSE All World ex-U.S. Small-Cap ETF | | | 7,430 | | | 888,702 | |
| Vanguard FTSE All-World ex-U.S. ETF | | | 62,471 | | | 3,415,914 | |
| Vanguard FTSE Emerging Markets ETF | | | 7,931 | | | 362,288 | |
| Vanguard FTSE Europe ETF | | | 9,245 | | | 549,153 | |
| WisdomTree Japan Hedged Equity Fund | | | 12,513 | | | 716,870 | |
| | | | | | | |
| | | | | | | 7,239,663 | |
| | | | | | | | |
| Money Market Funds - 2.1% | | | | | | | |
| State Street Institutional U.S. Government Money Market Fund, 1.63%, Premier Class | | | 1,491,692 | | | 1,491,692 | |
| | | | | | | |
| | | | | | | | |
| Stock Funds - 20.9% | | | | | | | |
| Energy Select Sector SPDR Fund | | | 5,282 | | | 389,864 | |
| iShares Core S&P Mid-Cap ETF | | | 11,593 | | | 2,167,427 | |
| Madison Dividend Income Fund Class Y (A) | | | 175,056 | | | 4,526,946 | |
| Madison Investors Fund Class Y (A) | | | 202,188 | | | 4,549,222 | |
| Madison Mid Cap Fund Class Y (A) | | | 55,467 | | | 542,471 | |
| Vanguard Financials ETF (B) | | | 5,171 | | | 357,937 | |
| Vanguard Growth ETF | | | 17,270 | | | 2,457,003 | |
| | | | | | | |
| | | | | | | 14,990,870 | |
| | | | | | | |
| | | | | | | | |
Total Investment Companies | | | | | | | |
(Cost $69,571,068) | | | | | | 71,385,513 | |
| COLLATERAL FOR SECURITIES ON LOAN (C) - 0.5% | | | | | | | |
| State Street Navigator Securities Lending Government Money Market Portfolio, 1.69% | | | 362,291 | | $ | 362,291 | |
| | | | | | | |
Total Collateral for Securities on Loan | | | | | | | |
(Cost $362,291) | | | | | | 362,291 | |
| | | | | | | |
| TOTAL INVESTMENTS - 100.0% | | | | | | | |
| (Cost $69,933,359**) | | | | | | 71,747,804 | |
| NET OTHER ASSETS AND LIABILITIES - 0.0% | | | | | | 22,283 | |
| | | | | | | |
| TOTAL NET ASSETS - 100.0% | | | | | $ | 71,770,087 | |
| | | | | | | |
| * | | Non-income producing. |
| ** | | Aggregate cost for Federal tax purposes was $69,998,608. |
| (A) | | Affiliated Company (see Note 12). |
| (B) | | A portion of securities on loan with an aggregate value of $350,738; cash collateral (included in liabilities) of $362,291 was received with which the Fund invested in the State Street Navigator Securities Lending Government Money Market Portfolio. |
| (C) | | Represents investments of cash collateral received in connection with securities lending. |
| ETF | | Exchange Traded Fund. |
| |
| Madison Moderate Allocation Fund Portfolio of Investments (unaudited) |
| | | | Shares | | Value (Note 2) |
| | | | | | |
| INVESTMENT COMPANIES - 99.4% | | | | | | | |
| | | | | | | | |
| Alternative Funds - 3.5% | | | | | | | |
| PowerShares Optimum Yield Diversified Commodity Strategy No. K-1 Portfolio | | | 195,739 | | $ | 3,607,470 | |
| SPDR Gold Shares* | | | 11,407 | | | 1,421,198 | |
| | | | | | | |
| | | | | | | 5,028,668 | |
| | | | | | | | |
| Bond Funds - 39.1% | | | | | | | |
| Baird Aggregate Bond Fund Institutional Shares | | | 427,416 | | | 4,504,965 | |
| iShares 20+ Year Treasury Bond ETF | | | 46,819 | | | 5,576,143 | |
| iShares 7-10 Year Treasury Bond ETF | | | 41,811 | | | 4,252,179 | |
| iShares TIPS Bond Fund ETF | | | 63,529 | | | 7,154,000 | |
| Madison Core Bond Fund Class Y (A) | | | 2,122,713 | | | 20,526,635 | |
| Vanguard Short-Term Corporate Bond ETF | | | 36,562 | | | 2,857,686 | |
| Vanguard Short-Term Treasury ETF | | | 107,312 | | | 6,424,769 | |
| Virtus Seix Floating Rate High Income Fund, Class R6 | | | 507,409 | | | 4,429,683 | |
| | | | | | | |
| | | | | | | 55,726,060 | |
| | | | | | | | |
| Foreign Stock Funds - 18.0% | | | | | | | |
| iShares MSCI Eurozone ETF | | | 103,662 | | | 4,595,336 | |
| iShares MSCI Japan ETF | | | 17,740 | | | 1,075,754 | |
| Vanguard FTSE All World ex-U.S. Small-Cap ETF | | | 29,686 | | | 3,550,742 | |
| Vanguard FTSE All-World ex-U.S. ETF | | | 170,056 | | | 9,298,662 | |
| Vanguard FTSE Emerging Markets ETF | | | 47,237 | | | 2,157,786 | |
| Vanguard FTSE Europe ETF | | | 36,969 | | | 2,195,959 | |
| WisdomTree Japan Hedged Equity Fund | | | 49,686 | | | 2,846,511 | |
| | | | | | | |
| | | | | | | 25,720,750 | |
| | | | | | | | |
| Money Market Funds - 1.8% | | | | | | | |
| State Street Institutional U.S. Government Money Market Fund, 1.63%, Premier Class | | | 2,529,639 | | | 2,529,639 | |
| | | | | | | |
| | | | | | | | |
| Stock Funds - 37.0% | | | | | | | |
| Energy Select Sector SPDR Fund | | | 20,868 | | | 1,540,267 | |
| iShares Core S&P Mid-Cap ETF | | | 30,588 | | | 5,718,732 | |
| Madison Dividend Income Fund Class Y (A) | | | 610,085 | | | 15,776,802 | |
| Madison Investors Fund Class Y (A) | | | 705,026 | | | 15,863,090 | |
| Madison Large Cap Value Fund Class Y (A) | | | 218,307 | | | 3,233,134 | |
| Madison Mid Cap Fund Class Y (A) | | | 301,223 | | | 2,945,957 | |
| Vanguard Financials ETF (B) | | | 10,215 | | | 707,082 | |
| Vanguard Growth ETF | | | 44,480 | | | 6,328,170 | |
| Vanguard Information Technology ETF | | | 4,325 | | | 739,403 | |
| | | | | | | |
| | | | | | | 52,852,637 | |
| | | | | | | |
Total Investment Companies | | | | | | | |
(Cost $131,458,379) | | | | | | 141,857,754 | |
| | | | | | | | |
| COLLATERAL FOR SECURITIES ON LOAN (C) - 0.6% | | | | | | | |
| State Street Navigator Securities Lending Government Money Market Portfolio | | | 715,715 | | $ | 715,715 | |
| | | | | | | |
Total Collateral for Securities on Loan | | | | | | | |
(Cost $715,715) | | | | | | 715,715 | |
| | | | | | | |
| TOTAL INVESTMENTS - 100.0% | | | | | | | |
| (Cost $132,174,094**) | | | | | | 142,573,469 | |
| NET OTHER ASSETS AND LIABILITIES - 0.0% | | | | | | 69,721 | |
| | | | | | | |
| TOTAL NET ASSETS - 100.0% | | | | | $ | 142,643,190 | |
| | | | | | | |
| * | | Non-income producing. |
| ** | | Aggregate cost for Federal tax purposes was $132,473,585. |
| (A) | | Affiliated Company (see Note 12). |
| (B) | | A portion of securities on loan with an aggregate value of $692,892; cash collateral (included in liabilities) of $715,715 was received with which the Fund invested in the State Street Navigator Securities Lending Government Money Market Portfolio. |
| (C) | | Represents investments of cash collateral received in connection with securities lending. |
| ETF | | Exchange Traded Fund. |
See accompanying Notes to Financial Statements.
12
| Madison Funds | April 30, 2018 |
| |
| |
| Madison Aggressive Allocation Fund Portfolio of Investments (unaudited) |
| | | | Shares | | Value (Note 2) |
| | | | | | |
| INVESTMENT COMPANIES - 99.5% | | | | | | | |
| | | | | | | | |
| Alternative Funds - 4.5% | | | | | | | |
| PowerShares Optimum Yield Diversified Commodity Strategy No. K-1 Portfolio | | | 125,741 | | $ | 2,317,407 | |
| SPDR Gold Shares* | | | 5,234 | | | 652,104 | |
| | | | | | | |
| | | | | | | 2,969,511 | |
| | | | | | | | |
| Bond Funds - 19.3% | | | | | | | |
| iShares 20+ Year Treasury Bond ETF | | | 12,457 | | | 1,483,628 | |
| iShares 7-10 Year Treasury Bond ETF | | | 19,084 | | | 1,940,843 | |
| Madison Core Bond Fund Class Y (A) | | | 546,170 | | | 5,281,460 | |
| Vanguard Short-Term Corporate Bond ETF | | | 20,992 | | | 1,640,735 | |
| Vanguard Short-Term Treasury ETF | | | 38,484 | | | 2,304,037 | |
| | | | | | | |
| | | | | | | 12,650,703 | |
| | | | | | | | |
| Foreign Stock Funds - 24.8% | | | | | | | |
| iShares MSCI Eurozone ETF | | | 61,239 | | | 2,714,725 | |
| iShares MSCI Japan ETF | | | 10,797 | | | 654,730 | |
| Vanguard FTSE All World ex-U.S. Small-Cap ETF | | | 21,806 | | | 2,608,216 | |
| Vanguard FTSE All-World ex-U.S. ETF (B) | | | 102,137 | | | 5,584,851 | |
| Vanguard FTSE Emerging Markets ETF | | | 36,094 | | | 1,648,774 | |
| Vanguard FTSE Europe ETF | | | 22,681 | | | 1,347,251 | |
| WisdomTree Japan Hedged Equity Fund (B) | | | 28,665 | | | 1,642,218 | |
| | | | | | | |
| | | | | | | 16,200,765 | |
| | | | | | | | |
| Money Market Funds - 2.3% | | | | | | | |
| State Street Institutional U.S. Government Money Market Fund, 1.63%, Premier Class | | | 1,475,317 | | | 1,475,317 | |
| | | | | | | |
| | | | | | | | |
| Stock Funds - 48.6% | | | | | | | |
| Energy Select Sector SPDR Fund | | | 13,445 | | | 992,376 | |
| iShares Core S&P Mid-Cap ETF | | | 21,064 | | | 3,938,125 | |
| Madison Dividend Income Fund Class Y (A) | | | 309,338 | | | 7,999,472 | |
| Madison Investors Fund Class Y (A) | | | 356,672 | | | 8,025,112 | |
| Madison Large Cap Value Fund Class Y (A) | | | 193,943 | | | 2,872,293 | |
| Madison Mid Cap Fund Class Y (A) | | | 205,838 | | | 2,013,094 | |
| Vanguard Financials ETF (B) | | | 4,701 | | | 325,403 | |
| Vanguard Growth ETF | | | 33,275 | | | 4,734,034 | |
| Vanguard Information Technology ETF | | | 5,400 | | | 923,184 | |
| | | | | | | |
| | | | | | | 31,823,093 | |
| | | | | | | |
| | | | | | | | |
Total Investment Companies | | | | | | | |
(Cost $58,254,191) | | | | | | 65,119,389 | |
| COLLATERAL FOR SECURITIES ON LOAN (C) - 0.8% | | | | | | | |
| State Street Navigator Securities Lending Government Money Market Portfolio, 1.69% | | | 498,979 | | $ | 498,979 | |
| | | | | | | |
Total Collateral for Securities on Loan | | | | | | | |
(Cost $498,979) | | | | | | 498,979 | |
| | | | | | | |
| TOTAL INVESTMENTS - 100.3% | | | | | | | |
| (Cost $58,753,170**) | | | | | | 65,618,368 | |
| NET OTHER ASSETS AND LIABILITIES - (0.3%) | | | | | | (174,977 | ) |
| | | | | | | |
| TOTAL NET ASSETS - 100.0% | | | | | $ | 65,443,391 | |
| | | | | | | |
| * | | Non-income producing. |
| ** | | Aggregate cost for Federal tax purposes was $58,857,296. |
| (A) | | Affiliated Company (see Note 12). |
| (B) | | A portion of securities on loan with an aggregate value of $4,786,426; cash collateral (included in liabilities) of $498,979 was received with which the Fund invested in the State Street Navigator Securities Lending Government Money Market Portfolio. |
| (C) | | Represents investments of cash collateral received in connection with securities lending. |
| ETF | | Exchange Traded Fund. |
| |
| Madison Government Money Market Fund Portfolio of Investments (unaudited) |
| | | | Par Value | | Value (Note 2) |
| | | | | | |
| U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 96.4% | | | | | | | |
| | | | | | | | |
| Fannie Mae - 27.7% | | | | | | | |
| 1.709%, 5/24/18 (A) | | $ | 500,000 | | $ | 499,463 | |
| 1.629%, 5/30/18 (A) | | | 700,000 | | | 699,098 | |
| 1.600%, 6/5/18 (A) | | | 300,000 | | | 299,542 | |
| 1.781%, 6/7/18 (A) | | | 600,000 | | | 598,921 | |
| 1.669%, 6/19/18 (A) | | | 400,000 | | | 399,112 | |
| 1.669%, 6/19/18 (A) | | | 350,000 | | | 349,214 | |
| 1.681%, 6/21/18 (A) | | | 700,000 | | | 698,364 | |
| 1.845%, 7/10/18 (A) | | | 575,000 | | | 572,976 | |
| | | | | | | |
| | | | | | | 4,116,690 | |
| | | | | | | | |
| Federal Farm Credit Bank - 1.5% | | | | | | | |
| 1.784%, 7/30/18 (A) | | | 225,000 | | | 224,016 | |
| | | | | | | |
| | | | | | | | |
| Federal Home Loan Bank - 35.4% | | | | | | | |
| 1.471%, 5/1/18 | | | 400,000 | | | 400,000 | |
| 1.481%, 5/2/18 | | | 350,000 | | | 349,986 | |
| 1.533%, 5/9/18 (A) | | | 400,000 | | | 399,866 | |
| 1.660%, 5/18/18 (A) | | | 400,000 | | | 399,692 | |
| 1.670%, 6/7/18 (A) | | | 350,000 | | | 349,410 | |
| 1.661%, 6/26/18 (A) | | | 600,000 | | | 598,479 | |
| 1.671%, 6/28/18 (A) | | | 650,000 | | | 648,283 | |
| 1.762%, 7/5/18 (A) | | | 200,000 | | | 199,375 | |
| 1.742%, 7/12/18 (A) | | | 725,000 | | | 722,520 | |
| 1.711%, 7/17/18 (A) | | | 600,000 | | | 597,844 | |
| 1.849%, 7/26/18 (A) | | | 600,000 | | | 597,399 | |
| | | | | | | |
| | | | | | | 5,262,854 | |
| | | | | | | | |
| Freddie Mac - 22.0% | | | | | | | |
| 1.507%, 5/16/18 (A) | | | 200,000 | | | 199,877 | |
| 1.558%, 5/23/18 (A) | | | 400,000 | | | 399,626 | |
| 1.630%, 6/12/18 (A) | | | 700,000 | | | 698,693 | |
| 1.691%, 7/3/18 (A) | | | 300,000 | | | 299,129 | |
| 1.712%, 7/5/18 (A) | | | 500,000 | | | 498,483 | |
| 1.690%, 7/12/18 (A) | | | 100,000 | | | 99,668 | |
| 1.619%, 7/19/18 (A) | | | 175,000 | | | 174,389 | |
| 1.839%, 8/2/18 (A) | | | 900,000 | | | 895,803 | |
| | | | | | | |
| | | | | | | 3,265,668 | |
| | | | | | | | |
| U.S. Treasury Notes - 9.8% | | | | | | | |
| 0.875%, 5/31/18 (A) | | | 250,000 | | | 249,863 | |
| 1.125%, 6/15/18 (A) | | | 800,000 | | | 799,460 | |
| 0.875%, 7/15/18 (A) | | | 400,000 | | | 399,194 | |
| | | | | | | |
| | | | | | | 1,448,517 | |
| | | | | | | |
Total U.S. Government and Agency | | | | | | | |
Obligations (Cost $14,317,745 ) | | | | | | 14,317,745 | |
| | | | | | | | |
| INVESTMENT COMPANIES - 4.0% | | | | | | | |
| State Street Institutional U.S. Government Money Market Fund, 1.63%, Premier Class | | | 597,705 | | $ | 597,705 | |
| | | | | | | |
Total Investment Companies | | | | | | | |
( Cost $597,705 ) | | | | | | 597,705 | |
| | | | | | | |
| | | | | | | | |
| TOTAL INVESTMENTS - 100.4% | | | | | | | |
| (Cost $14,915,450** ) | | | | | | 14,915,450 | |
| NET OTHER ASSETS AND LIABILITIES - (0.4%) | | | | | | (60,478 | ) |
| | | | | | | |
| TOTAL NET ASSETS - 100.0% | | | | | $ | 14,854,972 | |
| | | | | | | |
| ** | | Aggregate cost for Federal tax purposes was $14,915,450. |
| (A) | | Rate noted represents annualized yield at time of purchase. |
See accompanying Notes to Financial Statements.
13
| Madison Funds | April 30, 2018 |
| |
| |
| Madison Tax-Free Virginia Fund Portfolio of Investments (unaudited) |
| | | | Par Value | | Value (Note 2) |
| | | | | | |
| MUNICIPAL BONDS - 98.5% | | | | | | | |
| | | | | | | | |
| Development - 4.2% | | | | | | | |
| Fairfax County Economic Development Authority, Series A, 5%, 10/1/26 | | $ | 150,000 | | $ | 171,423 | |
| Norfolk Economic Development Authority, 5%, 11/1/29 | | | 480,000 | | | 527,314 | |
| Virginia Housing Development Authority, Series C, 1.5%, 4/1/19 | | | 200,000 | | | 199,206 | |
| | | | | | | |
| | | | | | | 897,943 | |
| | | | | | | | |
| Education - 12.8% | | | | | | | |
| Henrico County Economic Development Authority, 4%, 4/15/42 | | | 220,000 | | | 221,597 | |
| Virginia College Building Authority, Series E, 5%, 2/1/23 | | | 500,000 | | | 560,605 | |
| Virginia College Building Authority, (Prerefunded 9/1/18 @ $100), (ST APPROP), 5%, 9/1/26 | | | 140,000 | | | 141,560 | |
| Virginia College Building Authority, Series A, (Prerefunded 2/1/19 @ $100), 5%, 2/1/29 | | | 375,000 | | | 384,000 | |
| Virginia Commonwealth University, Series A, 5%, 5/1/26 | | | 385,000 | | | 426,707 | |
| Virginia Public School Authority, (ST AID WITHHLDG), 3%, 2/1/30 | | | 305,000 | | | 292,797 | |
| Virginia Public School Authority, 5%, 12/1/18 | | | 100,000 | | | 101,903 | |
| Virginia Public School Authority, Series A, (Prerefunded 8/1/18 @ $100), (ST APPROP), 5%, 8/1/27 | | | 350,000 | | | 352,922 | |
| Virginia Resources Authority, (MORAL OBLG), 4%, 11/1/32 | | | 250,000 | | | 266,268 | |
| | | | | | | |
| | | | | | | 2,748,359 | |
| | | | | | | | |
| Facilities - 4.0% | | | | | | | |
| New River Valley Regional Jail Authority, 5%, 10/1/25 | | | 100,000 | | | 115,794 | |
| Stafford County & Staunton Industrial Development Authority, Series B, (NATL-RE), 4.5%, 8/1/25 | | | 35,000 | | | 35,037 | |
| Virginia Public Building Authority, Series B, (Prerefunded 8/1/18 @ $100), 5.25%, 8/1/23 | | | 200,000 | | | 201,792 | |
| Western Regional Jail Authority, 3.125%, 12/1/29 | | | 500,000 | | | 498,305 | |
| | | | | | | |
| | | | | | | 850,928 | |
| | | | | | | | |
| General - 11.4% | | | | | | | |
| Fairfax County Economic Development Authority, 4.25%, 8/1/29 | | | 340,000 | | | 351,781 | |
| Loudoun County Economic Development Authority Revenue, 3%, 12/1/29 | | | 535,000 | | | 530,335 | |
| Northern Virginia Transportation Authority, 5%, 6/1/30 | | | 780,000 | | | 885,113 | |
| Virginia Beach Development Authority, Series A, 3.5%, 5/1/30 | | | 250,000 | | | 254,062 | |
| Virginia Resources Authority, 5%, 11/1/30 | | | 250,000 | | | 297,195 | |
| Virginia Resources Authority, Series C, 4%, 11/1/34 | | | 125,000 | | | 131,438 | |
| | | | | | | |
| | | | | | | 2,449,924 | |
| | | | | | | | |
| General Obligation - 27.9% | | | | | | | |
| City of Alexandria VA, Series A, (ST AID WITHHLDG), 5%, 7/15/28 | | | 100,000 | | | 120,162 | |
| City of Danville VA, Series A, (ST AID WITHHLDG), 5%, 8/1/23 | | | 190,000 | | | 214,613 | |
| City of Fredericksburg VA, Series A, 3.625%, 7/15/30 | | | 400,000 | | | 404,084 | |
| City of Hampton VA, Series A, 5%, 1/15/21 | | | 250,000 | | | 255,645 | |
| City of Manassas VA, (ST AID WITHHLDG), 3%, 7/1/27 | | | 500,000 | | | 511,280 | |
| City of Norfolk VA, Series A (Prerefunded 11/1/19 @ $100), 4.125%, 11/1/27 | | | 75,000 | | | 77,497 | |
| City of Portsmouth VA, Series A, (Prerefunded 2/1/23 @ $100), (ST AID WITHHLDG), 5%, 2/1/31 | | | 560,000 | | | 626,808 | |
| City of Portsmouth VA, Series A, (ST AID WITHHLDG), 5%, 2/1/31 | | | 75,000 | | | 83,448 | |
| City of Richmond VA, Series C, (ST AID WITHHLDG), 5%, 7/15/22 | | | 100,000 | | | 106,386 | |
| City of Roanoke VA, Series A, (Prerefunded 2/1/20 @ $100), (ST AID WITHHLDG), 5%, 2/1/25 | | | 230,000 | | | 241,985 | |
| City of Suffolk VA, Series A, 3%, 2/1/32 | | | 435,000 | | | 415,020 | |
| City of Virginia Beach VA, Series A, 4%, 8/1/22 | | | 300,000 | | | 322,659 | |
| Commonwealth of Virginia, Series B (Prerefunded 6/1/18 @ $100), 5%, 6/1/21 | | | 175,000 | | | 175,476 | |
| Commonwealth of Virginia, Series A, 5%, 6/1/23 | | | 500,000 | | | 566,170 | |
| Commonwealth of Virginia, Series B (Prerefunded 6/1/19 @ $100), 5%, 6/1/27 | | | 150,000 | | | 154,932 | |
| County of Arlington VA, Series B, (ST AID WITHHLDG), 5%, 8/15/27 | | | 175,000 | | | 200,846 | |
| County of Fairfax VA, Series B, (ST AID WITHHLDG), 4%, 10/1/22 | | | 250,000 | | | 269,482 | |
| County of Fairfax VA, Series A, (ST AID WITHHLDG), 5%, 10/1/26 | | | 410,000 | | | 488,363 | |
| County of Henrico VA, 5%, 7/15/25 | | | 150,000 | | | 159,579 | |
| County of Prince William VA, (ST AID WITHHLDG), 5%, 8/1/21 | | | 105,000 | | | 114,819 | |
| County of Spotsylvania VA, (ST AID WITHHLDG), 5%, 1/15/24 | | | 200,000 | | | 228,126 | |
| Town of Leesburg VA, (ST AID WITHHLDG), 5%, 1/15/25 | | | 90,000 | | | 104,466 | |
| Town of Leesburg VA, Series A (Prerefunded 1/15/21 @ $100), 5%, 1/15/41 | | | 135,000 | | | 145,526 | |
| | | | | | | |
| | | | | | | 5,987,372 | |
| | | | | | | | |
| Medical - 6.5% | | | | | | | |
| Fredericksburg Economic Development Authority, 5.25%, 6/15/18 | | | 250,000 | | | 250,920 | |
| Norfolk Economic Development Authority, Series B, 5%, 11/1/36 | | | 480,000 | | | 526,887 | |
| Stafford County Economic Development Authority Revenue, 5%, 6/15/25 | | | 260,000 | | | 292,393 | |
| Virginia Small Business Financing Authority, 5%, 11/1/40 | | | 300,000 | | | 315,603 | |
| | | | | | | |
| | | | | | | 1,385,803 | |
| | | | | | | | |
| Multifamily Housing - 6.1% | | | | | | | |
| Fairfax County Redevelopment & Housing Authority, 4.75%, 10/1/36 | | | 725,000 | | | 748,533 | |
| Fairfax County Redevelopment & Housing Authority, 5%, 10/1/39 | | | 300,000 | | | 311,454 | |
| Virginia Housing Development Authority, Series E, 4.8%, 10/1/39 | | | 250,000 | | | 255,205 | |
| | | | | | | |
| | | | | | | 1,315,192 | |
| | | | | | | | |
| Power - 4.3% | | | | | | | |
| Chesterfield County Economic Development Authority, Series A, 5%, 5/1/23 | | | 565,000 | | | 583,413 | |
| Puerto Rico Electric Power Authority, Series V, (BHAC-CR MBIA-RE FGIC), 5.25%, 7/1/24 | | | 290,000 | | | 327,329 | |
| | | | | | | |
| | | | | | | 910,742 | |
| | | | | | | | |
| Transportation - 7.1% | | | | | | | |
| Puerto Rico Highways & Transportation Authority, Series N, (ASSURED GTY), 5.25%, 7/1/34 | | | 100,000 | | | 110,984 | |
| Richmond Metropolitan Authority, (NATL-RE), 5.25%, 7/15/22 | | | 140,000 | | | 147,496 | |
| Richmond Metropolitan Authority, (Escrowed To Maturity) (NATL-RE), 5.25%, 7/15/22 | | | 60,000 | | | 63,598 | |
| Virginia Commonwealth Transportation Board, Series A, (Prerefunded 3/15/22 @ $100), 5%, 9/15/24 | | | 225,000 | | | 248,857 | |
| Virginia Commonwealth Transportation Board, Series B, (Prerefunded 9/15/22 @ $100), 5%, 3/15/25 | | | 535,000 | | | 598,012 | |
| Virginia Commonwealth Transportation Board, 5%, 9/15/27 | | | 200,000 | | | 239,130 | |
| Virginia Port Authority Revenue, Series B, 5%, 7/1/21 | | | 100,000 | | | 107,968 | |
| | | | | | | |
| | | | | | | 1,516,045 | |
| | | | | | | | |
| Utilities - 1.5% | | | | | | | |
| City of Richmond VA Public Utility Revenue, Series A, 5%, 1/15/38 | | | 300,000 | | | 329,712 | |
| | | | | | | |
| | | | | | | | |
| Water - 12.7% | | | | | | | |
| County of Henrico VA Water & Sewer Revenue, 4%, 5/1/32 | | | 500,000 | | | 545,090 | |
| Fairfax County Water Authority, Series B, 5.25%, 4/1/23 | | | 180,000 | | | 205,434 | |
| Fairfax County Water Authority, 5%, 4/1/27 | | | 150,000 | | | 165,785 | |
| Hampton Roads Sanitation District, Series A, 5%, 10/1/36 | | | 250,000 | | | 287,638 | |
| Prince William County Service Authority, 5%, 7/1/22 | | | 250,000 | | | 278,650 | |
| Upper Occoquan Sewage Authority, Series A, (NATL-RE), 5.15%, 7/1/20 | | | 315,000 | | | 325,631 | |
| Virginia Resources Authority, Series B, (Prerefunded 11/1/21@ $100), (MORAL OBLG), 5%, 11/1/23 | | | 80,000 | | | 87,698 | |
| Virginia Resources Authority, (Prerefunded 10/1/19 @ $100), (ST AID WITHHLDG), 5%, 10/1/23 | | | 500,000 | | | 521,870 | |
| Virginia Resources Authority, Series B, (MORAL OBLG), 5%, 11/1/23 | | | 120,000 | | | 131,462 | |
| Virginia Resources Authority, (Prerefunded 10/1/19 @ $100), (ST AID WITHHLDG), 4.5%, 10/1/28 | | | 160,000 | | | 165,888 | |
| | | | | | | |
| | | | | | | 2,715,146 | |
| | | | | | | |
| | | | | | | | |
| TOTAL INVESTMENTS - 98.5% | | | | | | | |
| (Cost $21,005,318**) | | | | | | 21,107,166 | |
| NET OTHER ASSETS AND LIABILITIES - 1.5% | | | | | | 324,120 | |
| | | | | | | |
| TOTAL NET ASSETS - 100.0% | | | | | $ | 21,431,286 | |
| | | | | | | |
| ** Aggregate cost for Federal tax purposes was $21,005,318. |
| 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. |
See accompanying Notes to Financial Statements.
14
| Madison Funds | April 30, 2018 |
| |
| |
| Madison Tax-Free National Fund Portfolio of Investments (unaudited) |
| | | | Par Value | | Value (Note 2) |
| | | | | | |
| MUNICIPAL BONDS - 98.6% | | | | | | | |
| | | | | | | | |
| Alabama - 1.3% | | | | | | | |
| Alabama Incentives Financing Authority Revenue, Series A, 5%, 9/1/29 | | $ | 300,000 | | $ | 311,430 | |
| | | | | | | |
| | | | | | | | |
| Arkansas - 0.7% | | | | | | | |
| City of Fort Smith AR Water & Sewer Revenue, (Prerefunded 10/1/18 @ $100), (AGM), 5%, 10/1/21 | | | 65,000 | | | 65,863 | |
| City of Fort Smith AR Water & Sewer Revenue, (AGM), 5%, 10/1/21 | | | 110,000 | | | 111,438 | |
| | | | | | | |
| | | | | | | 177,301 | |
| | | | | | | | |
| Colorado - 2.0% | | | | | | | |
| El Paso County Facilities Corp., Certificate Participation, Series A, 5%, 12/1/27 | | | 400,000 | | | 470,548 | |
| | | | | | | |
| | | | | | | | |
| Delaware - 1.6% | | | | | | | |
| State of Delaware, General Obligation, Series A, 5%, 8/1/25 | | | 345,000 | | | 389,508 | |
| | | | | | | |
| | | | | | | | |
| Florida - 18.4% | | | | | | | |
| City of Margate FL, General Obligation, 5%, 7/1/25 | | | 785,000 | | | 907,947 | |
| City of Port St. Lucie FL Utility System Revenue, 5%, 9/1/27 | | | 600,000 | | | 656,538 | |
| County of Miami-Dade FL, Series B, 5%, 3/1/25 | | | 525,000 | | | 581,579 | |
| Hillsborough County Industrial Development Authority, 5%, 10/1/34 | | | 450,000 | | | 486,009 | |
| Lee County Industrial Development Authority, 5%, 11/1/28 | | | 500,000 | | | 535,475 | |
| Orlando Utilities Commission, Series C, 5%, 10/1/22 | | | 525,000 | | | 586,267 | |
| Palm Beach County Solid Waste Authority, 5%, 10/1/24 | | | 300,000 | | | 327,786 | |
| Port St. Lucie Community Redevelopment Agency Revenue, Tax Allocation, 5%, 1/1/26 | | | 250,000 | | | 285,283 | |
| | | | | | | |
| | | | | | | 4,366,884 | |
| | | | | | | | |
| Georgia - 3.5% | | | | | | | |
| City of Atlanta GA Water & Wastewater Revenue, (AGM), 5.75%, 11/1/30 | | | 300,000 | | | 387,270 | |
| City of Atlanta GA Water & Wastewater Revenue, 5%, 11/1/43 | | | 275,000 | | | 307,824 | |
| Dublin GA School District, General Obligation, (ST AID WITHHLDG), 4%, 4/1/23 | | | 135,000 | | | 140,150 | |
| | | | | | | |
| | | | | | | 835,244 | |
| | | | | | | | |
| Hawaii - 2.2% | | | | | | | |
| State of Hawaii, General Obligation, Series EY, 5%, 10/1/25 | | | 435,000 | | | 510,420 | |
| | | | | | | |
| | | | | | | | |
| Illinois - 2.4% | | | | | | | |
| City of Waukegan IL, General Obligation, Series A, (BAM), 4%, 12/30/24 | | | 430,000 | | | 450,210 | |
| Regional Transportation Authority, Series A, (AMBAC GO of AUTH) *, 7.2%, 11/1/20 | | | 105,000 | | | 112,928 | |
| | | | | | | |
| | | | | | | 563,138 | |
| | | | | | | | |
| Indiana - 3.4% | | | | | | | |
| Indiana Finance Authority, Series C, 5%, 2/1/21 | | | 400,000 | | | 420,352 | |
| Indianapolis Local Public Improvement Bond Bank Revenue, Series A, (ASSURED GTY), 5.5%, 1/1/38 | | | 380,000 | | | 388,539 | |
| | | | | | | |
| | | | | | | 808,891 | |
| | | | | | | | |
| Iowa - 3.1% | | | | | | | |
| City of Bettendorf IA, General Obligation, Series A, (Prerefunded 6/1/20 @ $100), 5%, 6/1/28 | | | 475,000 | | | 504,593 | |
| City of Bettendorf IA, General Obligation, Series A, (Prerefunded 6/1/20 @ $100), 5%, 6/1/30 | | | 210,000 | | | 223,083 | |
| | | | | | | |
| | | | | | | 727,676 | |
| | | | | | | | |
| Kansas - 3.5% | | | | | | | |
| City of Wichita KS, General Obligation, Series 816, 5%, 12/1/24 | | | 510,000 | | | 587,581 | |
| Shawnee County Unified School District No. 437, General Obligation, 4%, 9/1/24 | | | 220,000 | | | 240,825 | |
| | | | | | | |
| | | | | | | 828,406 | |
| | | | | | | | |
| Maryland - 2.9% | | | | | | | |
| City of Rockville MD, General Obligation, Series A, 5%, 6/1/24 | | | 600,000 | | | 689,226 | |
| | | | | | | |
| | | | | | | | |
| Michigan - 3.7% | | | | | | | |
| Detroit City School District, General Obligation, Series A, (FGIC Q-SBLF), 6%, 5/1/20 | | | 400,000 | | | 429,784 | |
| Redford Unified School District No. 1, General Obligation, (AMBAC Q-SBLF) *, 5%, 5/1/22 | | | 410,000 | | | 438,056 | |
| | | | | | | |
| | | | | | | 867,840 | |
| | | | | | | | |
| Missouri - 6.6% | | | | | | | |
| County of St Louis MO, Series D, (Escrowed To Maturity), 5.65%, 2/1/20 | | | 500,000 | | | 529,835 | |
| Missouri State Board of Public Buildings, Series B, 4%, 4/1/25 | | | 525,000 | | | 570,743 | |
| Springfield School District No. R-12, General Obligation, Series B, (ST AID DIR DEP), 5%, 3/1/25 | | | 400,000 | | | 462,148 | |
| | | | | | | |
| | | | | | | 1,562,726 | |
| | | | | | | | |
| New Jersey - 5.2% | | | | | | | |
| New Jersey Economic Development Authority Revenue, (ST APPROP), 5%, 3/1/26 | | | 450,000 | | | 477,477 | |
| New Jersey State Turnpike Authority, Series A, (BHAC-CR AGM), 5.25%, 1/1/28 | | | 250,000 | | | 302,950 | |
| New Jersey State Turnpike Authority, Series A, (BHAC-CR AGM), 5.25%, 1/1/29 | | | 250,000 | | | 303,805 | |
| Union County Improvement Authority, Series A, 4%, 2/1/25 | | | 150,000 | | | 159,818 | |
| | | | | | | |
| | | | | | | 1,244,050 | |
| | | | | | | | |
| New Mexico - 1.9% | | | | | | | |
| Farmington Municipal School District No. 5, General Obligation, Series A, (ST AID WITHHLDG), 3%, 9/1/23 | | | 450,000 | | | 460,476 | |
| | | | | | | |
| | | | | | | | |
| New York - 3.5% | | | | | | | |
| New York State Dormitory Authority, Series 1, (BHAC-CR AMBAC) *, 5.5%, 7/1/31 | | | 250,000 | | | 305,310 | |
| Port Authority of New York & New Jersey, (GO of AUTH), 5.375%, 3/1/28 | | | 455,000 | | | 528,319 | |
| | | | | | | |
| | | | | | | 833,629 | |
| | | | | | | | |
| North Carolina - 3.2% | | | | | | | |
| State of North Carolina, Series A, (Prerefunded 5/1/19 @ $100), 4.5%, 5/1/27 | | | 200,000 | | | 205,314 | |
| Town of Cary NC Combined Utility Systems Revenue, (Prerefunded 12/1/22 @ $100), 5%, 12/1/23 | | | 215,000 | | | 240,097 | |
| Town of Cary NC Combined Utility Systems Revenue, 5%, 12/1/23 | | | 285,000 | | | 319,981 | |
| | | | | | | |
| | | | | | | 765,392 | |
| | | | | | | | |
| Ohio - 2.4% | | | | | | | |
| Cleveland-Cuyahoga County Port Authority, 5%, 7/1/24 | | | 500,000 | | | 562,765 | |
| | | | | | | |
| | | | | | | | |
| South Carolina - 6.6% | | | | | | | |
| Anderson County School District No. 1, General Obligation, Series A, (SCSDE), 5%, 3/1/25 | | | 720,000 | | | 832,846 | |
| City of Bennettsville SC Combined Utility System Revenue, (BAM), 3.5%, 2/1/24 | | | 465,000 | | | 483,158 | |
| City of Newberry SC Revenue, (AGM), 4%, 4/1/22 | | | 240,000 | | | 251,966 | |
| | | | | | | |
| | | | | | | 1,567,970 | |
| | | | | | | | |
| Tennessee - 0.5% | | | | | | | |
| Town of Decatur TN Water & Sewer Revenue, General Obligation, 3%, 6/1/24 | | | 120,000 | | | 123,158 | |
| | | | | | | |
| | | | | | | | |
| Texas - 7.6% | | | | | | | |
| Beaumont Independent School District, General Obligation, (PSF-GTD), 4.75%, 2/15/38 | | | 300,000 | | | 316,224 | |
| Liberty Hill Independent School District, General Obligation, (Prerefunded 8/1/19 @ $100), (PSF-GTD), 5%, 8/1/26 | | | 410,000 | | | 425,941 | |
| Mueller Local Government Corp., 5%, 9/1/25 | | | 500,000 | | | 501,170 | |
| San Jacinto River Authority, (BAM), 4%, 10/1/23 | | | 200,000 | | | 214,156 | |
| State of Texas, General Obligation, Series C, 5%, 8/1/27 | | | 330,000 | | | 342,665 | |
| | | | | | | |
| | | | | | | 1,800,156 | |
| | | | | | | | |
| Utah - 1.4% | | | | | | | |
| Utah Transit Authority, 5%, 6/15/35 | | | 280,000 | | | 335,317 | |
| | | | | | | |
| | | | | | | | |
| Virginia - 6.9% | | | | | | | |
| Fairfax County Redevelopment & Housing Authority, 5%, 10/1/39 | | | 100,000 | | | 103,818 | |
| Hampton Roads Sanitation District, Series A, 5%, 10/1/36 | | | 500,000 | | | 575,275 | |
| Henrico County Economic Development Authority Revenue, Series B, 5%, 10/1/19 | | | 300,000 | | | 313,296 | |
| James City County Economic Development Authority, 5%, 6/15/22 | | | 250,000 | | | 277,315 | |
| Virginia Housing Development Authority, Series E, 4.8%, 10/1/39 | | | 250,000 | | | 255,205 | |
| Virginia Port Authority Revenue, Series B, 5%, 7/1/21 | | | 100,000 | | | 107,968 | |
| | | | | | | |
| | | | | | | 1,632,877 | |
| | | | | | | | |
| Washington - 1.0% | | | | | | | |
| State of Washington, General Obligation, Series E, 5%, 2/1/29 | | | 205,000 | | | 231,451 | |
| | | | | | | |
| | | | | | | | |
| Wisconsin - 3.1% | | | | | | | |
| Maple School District, General Obligation, Series A, 5%, 4/1/24 | | | 650,000 | | | 730,061 | |
| | | | | | | |
| | | | | | | | |
| TOTAL INVESTMENTS - 98.6% | | | | | | | |
| (Cost $23,136,447**) | | | | | | 23,396,540 | |
| NET OTHER ASSETS AND LIABILITIES - 1.4% | | | | | | 322,178 | |
| | | | | | | |
| TOTAL NET ASSETS - 100.0% | | | | | $ | 23,718,718 | |
| | | | | | | |
See accompanying Notes to Financial Statements.
15
| Madison Funds | April 30, 2018 |
| |
| |
| Madison Tax-Free National Fund Portfolio of Investments (unaudited) - continued |
| * | | 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. Although AMBAC’s claim paying ability appears strong at this point, its ultimate ability to guarantee timely payment of principal and interest on these bonds, should they default, will be dependent on the timing and magnitude of losses within the entity’s overall portfolio. |
| ** | | Aggregate cost for Federal tax purposes was $23,136,447. |
| 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. |
| 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. |
| ST APPROP | | State Appropriations. |
| |
| Madison High Quality Bond Fund Portfolio of Investments (unaudited) |
| | | | Par Value | | Value (Note 2) |
| | | | | | |
| CORPORATE NOTES AND BONDS - 38.1% | | | | | | | |
| | | | | | | | |
| Consumer Discretionary - 6.3% | | | | | | | |
| Comcast Corp., 3.125%, 7/15/22 | | $ | 2,000,000 | | $ | 1,986,289 | |
| Home Depot Inc./The, 2%, 6/15/19 | | | 2,000,000 | | | 1,988,735 | |
| Target Corp., 2.9%, 1/15/22 | | | 2,000,000 | | | 1,992,260 | |
| | | | | | | |
| | | | | | | 5,967,284 | |
| | | | | | | | |
| Consumer Staples - 1.6% | | | | | | | |
| Coca-Cola Co./The, 2.45%, 11/1/20 | | | 1,500,000 | | | 1,488,985 | |
| | | | | | | |
| | | | | | | | |
| Energy - 1.6% | | | | | | | |
| Chevron Corp., 2.427%, 6/24/20 | | | 1,500,000 | | | 1,490,778 | |
| | | | | | | |
| | | | | | | | |
| Financials - 14.3% | | | | | | | |
| American Express Credit Corp., 2.125%, 7/27/18 | | | 1,000,000 | | | 999,360 | |
| Bank of America Corp., MTN, (3M USD LIBOR + 0.930%) (A), 2.816%, 7/21/23 | | | 1,500,000 | | | 1,450,811 | |
| Bank of New York Mellon Corp./The, MTN, 2.2%, 8/16/23 | | | 1,000,000 | | | 938,313 | |
| BB&T Corp., MTN, 2.85%, 10/26/24 | | | 750,000 | | | 714,869 | |
| Berkshire Hathaway Finance Corp., 2.9%, 10/15/20 | | | 500,000 | | | 502,567 | |
| Goldman Sachs Group Inc./The, 2.625%, 1/31/19 | | | 1,360,000 | | | 1,359,919 | |
| John Deere Capital Corp., MTN, 2.65%, 1/6/22 | | | 1,500,000 | | | 1,471,363 | |
| JPMorgan Chase & Co., 2.25%, 1/23/20 | | | 1,500,000 | | | 1,482,831 | |
| JPMorgan Chase & Co., 2.972%, 1/15/23 | | | 450,000 | | | 438,363 | |
| Morgan Stanley, 2.8%, 6/16/20 | | | 2,000,000 | | | 1,986,020 | |
| State Street Corp., 1.95%, 5/19/21 | | | 1,500,000 | | | 1,452,235 | |
| US Bancorp, MTN, 1.95%, 11/15/18 | | | 750,000 | | | 748,557 | |
| | | | | | | |
| | | | | | | 13,545,208 | |
| | | | | | | | |
| Health Care - 3.1% | | | | | | | |
| Merck & Co. Inc., 3.875%, 1/15/21 | | | 1,500,000 | | | 1,534,618 | |
| UnitedHealth Group Inc., 2.875%, 3/15/23 | | | 1,500,000 | | | 1,463,889 | |
| | | | | | | |
| | | | | | | 2,998,507 | |
| | | | | | | | |
| Industrials - 0.5% | | | | | | | |
| Caterpillar Inc., 3.9%, 5/27/21 | | | 500,000 | | | 510,837 | |
| | | | | | | |
| | | | | | | | |
| Information Technology - 8.8% | | | | | | | |
| Apple Inc., 2.4%, 5/3/23 | | | 1,500,000 | | | 1,441,267 | |
| Cisco Systems Inc., 2.2%, 2/28/21 | | | 1,500,000 | | | 1,473,132 | |
| Intel Corp., 3.3%, 10/1/21 | | | 1,750,000 | | | 1,767,158 | |
| Microsoft Corp., 3%, 10/1/20 | | | 1,500,000 | | | 1,512,215 | |
| Microsoft Corp., 2.875%, 2/6/24 | | | 500,000 | | | 487,349 | |
| Visa Inc., 2.2%, 12/14/20 | | | 1,700,000 | | | 1,674,586 | |
| | | | | | | |
| | | | | | | 8,355,707 | |
| | | | | | | | |
| Real Estate - 1.9% | | | | | | | |
| Simon Property Group L.P., 4.125%, 12/1/21 | | | 1,750,000 | | | 1,791,650 | |
| | | | | | | |
Total Corporate Notes and Bonds | | | | | | | |
(Cost $36,702,761) | | | | | | 36,148,956 | |
| | | | | | | | |
| U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 60.5% | | | | | | | |
| | | | | | | | |
| Fannie Mae - 4.0% | | | | | | | |
| 1.375%, 10/7/21 | | | 4,000,000 | | | 3,820,748 | |
| | | | | | | |
| | | | | | | | |
| Freddie Mac - 4.2% | | | | | | | |
| 2.375%, 1/13/22 | | | 4,000,000 | | | 3,940,064 | |
| | | | | | | |
| | | | | | | | |
| U.S. Treasury Notes - 52.3% | | | | | | | |
| 1.500%, 12/31/18 | | | 2,000,000 | | | 1,991,328 | |
| 1.250%, 1/31/19 | | | 3,000,000 | | | 2,978,672 | |
| 1.500%, 3/31/19 | | | 3,250,000 | | | 3,227,529 | |
| 3.125%, 5/15/19 | | | 3,250,000 | | | 3,276,660 | |
| 1.125%, 12/31/19 | | | 4,000,000 | | | 3,914,062 | |
| 3.625%, 2/15/20 | | | 4,000,000 | | | 4,080,469 | |
| 2.000%, 7/31/20 | | | 1,750,000 | | | 1,729,287 | |
| 2.625%, 11/15/20 | | | 4,500,000 | | | 4,504,219 | |
| 2.000%, 2/15/22 | | | 1,500,000 | | | 1,461,738 | |
| 1.625%, 5/31/23 | | | 4,000,000 | | | 3,777,187 | |
| 2.500%, 8/15/23 | | | 4,500,000 | | | 4,430,391 | |
| 2.750%, 11/15/23 | | | 3,000,000 | | | 2,987,930 | |
| 2.125%, 5/15/25 | | | 4,500,000 | | | 4,277,285 | |
| 1.500%, 8/15/26 | | | 3,000,000 | | | 2,684,883 | |
| 2.375%, 5/15/27 | | | 4,450,000 | | | 4,253,227 | |
| | | | | | | |
| | | | | | | 49,574,867 | |
| | | | | | | |
| | | | | | | | |
Total U.S. Government and Agency | | | | | | | |
Obligations (Cost $58,703,125) | | | | | | 57,335,679 | |
| | | | | | | | |
| | | | Shares | | | | |
| | | | | | | | |
| SHORT-TERM INVESTMENTS - 0.8% | | | | | | | |
| State Street Institutional U.S. Government Money Market Fund, 1.63%, Premier Class | | | 784,978 | | | 784,978 | |
| | | | | | | |
Total Short-Term Investments | | | | | | | |
(Cost $784,978) | | | | | | 784,978 | |
| | | | | | | |
| TOTAL INVESTMENTS - 99.4% | | | | | | | |
| (Cost $96,190,864**) | | | | | | 94,269,613 | |
| NET OTHER ASSETS AND LIABILITIES - 0.6% | | | | | | 522,405 | |
| | | | | | | |
| TOTAL NET ASSETS - 100.0% | | | | | $ | 94,792,018 | |
| | | | | | | |
| ** | | Aggregate cost for Federal tax purposes was $96,190,864. |
| (A) | | Floating rate or variable rate note. Rate shown is as of April 30, 2018. |
| MTN | | Medium Term Note. |
See accompanying Notes to Financial Statements.
16
| Madison Funds | April 30, 2018 |
| |
| |
| Madison Core Bond Fund Portfolio of Investments (unaudited) |
| | | | Par Value | | Value (Note 2) |
| | | | | | |
| ASSET BACKED SECURITIES - 5.1% | | | | | | | |
| American Express Credit Account Master Trust, Series 2017-1, Class B, 2.1%, 9/15/22 | | $ | 1,000,000 | | $ | 985,580 | |
| CarMax Auto Owner Trust, Series 2017-1, Class A2, 1.54%, 2/18/20 | | | 398,166 | | | 397,301 | |
| Chase Issuance Trust, Series 2017-A1, Class A, (1M LIBOR + 0.300%) (A), 2.197%, 1/18/22 | | | 1,000,000 | | | 1,002,068 | |
| Chesapeake Funding II LLC, Series 2017 4A, Class A1 (B), 2.12%, 11/15/29 | | | 1,000,000 | | | 987,702 | |
| Chesapeake Funding II LLC (B), 3.04%, 4/15/30 | | | 500,000 | | | 498,809 | |
| Dell Equipment Finance Trust, Series 2017-2, Class A2A (B), 1.97%, 2/24/20 | | | 750,000 | | | 746,564 | |
| Enterprise Fleet Financing LLC, Series 2015-2, Class A3 (B), 2.09%, 2/22/21 | | | 1,000,000 | | | 996,648 | |
| Enterprise Fleet Financing LLC, Series 2017-2, Class A2 (B), 1.97%, 1/20/23 | | | 500,000 | | | 496,012 | |
| Enterprise Fleet Financing LLC, Series 2017-3, Class A3 (B), 2.36%, 5/20/23 | | | 1,000,000 | | | 981,766 | |
| Ford Credit Floorplan Master Owner Trust, Series 2015-4, Class A1, 1.77%, 8/15/20 | | | 500,000 | | | 498,985 | |
| Santander Drive Auto Receivables Trust, Series 2013-5, Class D, 2.73%, 10/15/19 | | | 611,788 | | | 611,868 | |
| Santander Drive Auto Receivables Trust, Series 2014-5, Class C, 2.46%, 6/15/20 | | | 478,719 | | | 478,547 | |
| Synchrony Credit Card Master Note Trust, Series 2017-1, Class B, 2.19%, 6/15/23 | | | 1,000,000 | | | 982,224 | |
| | | | | | | |
Total Asset Backed Securities | | | | | | | |
(Cost $9,709,053) | | | | | | 9,664,074 | |
| | | | | | | | |
| COLLATERALIZED MORTGAGE OBLIGATIONS - 3.0% | | | | | | | |
| Fannie Mae REMICS, Series 2015-12, Class NI, IO, 3.5%, 3/25/30 | | | 2,045,716 | | | 232,304 | |
| Fannie Mae REMICS, Series 2011-31, Class DB, 3.5%, 4/25/31 | | | 875,000 | | | 881,636 | |
| Fannie Mae REMICS, Series 2011-36, Class QB, 4%, 5/25/31 | | | 1,000,000 | | | 1,027,629 | |
| Fannie Mae REMICS, Series 2001-73, Class GZ, 6%, 12/25/31 | | | 267,867 | | | 296,595 | |
| Fannie Mae REMICS, Series 2005-79, Class LT, 5.5%, 9/25/35 | | | 199,582 | | | 215,597 | |
| Fannie Mae REMICS, Series 2011-101, Class NC, 2.5%, 4/25/40 | | | 526,759 | | | 520,209 | |
| Fannie Mae REMICS, Series 2015-44, Class GI, IO, 3%, 11/25/40 | | | 697,121 | | | 66,219 | |
| Fannie Mae REMICS, Series 2016-21, Class BA, 3%, 3/25/42 | | | 693,498 | | | 681,234 | |
| Freddie Mac REMICS, Series 3825, Class CB, 3.5%, 3/15/26 | | | 1,000,000 | | | 1,017,622 | |
| Freddie Mac REMICS, Series 4066, Class DI, IO, 3%, 6/15/27 | | | 2,772,125 | | | 228,310 | |
| Government National Mortgage Association, Series 2015-53, Class IL, IO, 3%, 9/20/44 | | | 2,073,191 | | | 433,771 | |
| | | | | | | |
Total Collateralized Mortgage | | | | | | | |
Obligations (Cost $5,726,433) | | | | | | 5,601,126 | |
| | | | | | | | |
| COMMERCIAL MORTGAGE-BACKED SECURITIES - 2.8% | | | | | | | |
| Fannie Mae-Aces, Series 2016-M2, Class X2, IO (A) (C), 1.188%, 1/25/23 | | | 12,342,045 | | | 485,698 | |
| FHLMC Multifamily Structured Pass Through Certificates, Series K718, Class X1, IO (A) (C), 0.762%, 1/25/22 | | | 23,832,726 | | | 481,838 | |
| FHLMC Multifamily Structured Pass Through Certificates, Series K058, Class A2, 2.653%, 8/25/26 | | | 2,000,000 | | | 1,899,681 | |
| FHLMC Multifamily Structured Pass Through Certificates, Series K066, Class A2, 3.117%, 6/25/27 | | | 400,000 | | | 390,693 | |
| FREMF Mortgage Trust, Series 2012-K706, Class B (A) (B) (C), 4.169%, 11/25/44 | | | 255,000 | | | 255,464 | |
| FREMF Mortgage Trust, Series 2012-K708, Class B (A) (B) (C), 3.882%, 2/25/45 | | | 1,250,000 | | | 1,256,415 | |
| WFRBS Commercial Mortgage Trust, Series 2014-LC14, Class A2, 2.862%, 3/15/47 | | | 481,771 | | | 482,113 | |
| | | | | | | |
Total Commercial Mortgage-Backed | | | | | | | |
Securities (Cost $5,476,956) | | | | | | 5,251,902 | |
| | | | | | | | |
| CORPORATE NOTES AND BONDS - 38.9% | | | | | | | |
| Consumer Discretionary - 7.8% | | | | | | | |
| Amazon.com Inc. (B), 28%, 8/22/24 | | | 300,000 | | | 288,737 | |
| Aptiv PLC (D), 3.15%, 11/19/20 | | | 1,000,000 | | | 994,469 | |
| Booking Holdings Inc., 3.6%, 6/1/26 | | | 1,000,000 | | | 969,371 | |
| CCO Holdings LLC/CCO Holdings Capital Corp. (B), 5.875%, 5/1/27 | | | 650,000 | | | 635,375 | |
| Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 4.464%, 7/23/22 | | | 500,000 | | | 509,766 | |
| D.R. Horton Inc., 2.55%, 12/1/20 | | | 500,000 | | | 490,645 | |
| Discovery Communications LLC, 5%, 9/20/37 | | | 500,000 | | | 489,797 | |
| DISH DBS Corp., 6.75%, 6/1/21 | | | 500,000 | | | 497,500 | |
| ERAC USA Finance LLC (B), 6.7%, 6/1/34 | | | 250,000 | | | 305,018 | |
| Ford Motor Credit Co. LLC, MTN, 2.943%, 1/8/19 | | | 1,000,000 | | | 1,000,548 | |
| General Motors Financial Co. Inc., 3.2%, 7/6/21 | | | 800,000 | | | 790,099 | |
| Georgia-Pacific LLC (B), 3.163%, 11/15/21 | | | 1,000,000 | | | 997,387 | |
| GLP Capital L.P./GLP Financing II Inc., 4.875%, 11/1/20 | | | 275,000 | | | 281,105 | |
| Harman International Industries Inc., 4.15%, 5/15/25 | | | 1,000,000 | | | 994,837 | |
| Lennar Corp., 4.75%, 4/1/21 | | | 500,000 | | | 506,745 | |
| Marriott International Inc., 3.125%, 6/15/26 | | | 600,000 | | | 558,549 | |
| Newell Brands Inc., 4.2%, 4/1/26 | | | 1,100,000 | | | 1,080,117 | |
| Omnicom Group Inc./Omnicom Capital Inc., 3.6%, 4/15/26 | | | 750,000 | | | 718,090 | |
| QVC Inc., 3.125%, 4/1/19 | | | 800,000 | | | 800,517 | |
| Sirius XM Radio Inc.(B), 6%, 7/15/24 | | | 525,000 | | | 539,542 | |
| Toll Brothers Finance Corp., 4%, 12/31/18 | | | 450,000 | | | 450,000 | |
| Walgreens Boots Alliance Inc., 4.5%, 11/18/34 | | | 1,000,000 | | | 973,173 | |
| | | | | | | |
| | | | | | | 14,871,387 | |
| | | | | | | | |
| Consumer Staples - 1.3% | | | | | | | |
| Anheuser-Busch InBev Finance Inc., 4.9%, 2/1/46 | | | 1,000,000 | | | 1,037,455 | |
| Bunge Ltd. Finance Corp., 3.25%, 8/15/26 | | | 1,000,000 | | | 917,224 | |
| Molson Coors Brewing Co., 2.1%, 7/15/21 | | | 500,000 | | | 479,241 | |
| | | | | | | |
| | | | | | | 2,433,920 | |
| | | | | | | | |
| Energy - 6.3% | | | | | | | |
| Andeavor, 3.8%, 4/1/28 | | | 600,000 | | | 577,565 | |
| Antero Resources Corp., 5.625%, 6/1/23 | | | 300,000 | | | 306,375 | |
| Boardwalk Pipelines L.P., 4.45%, 7/15/27 | | | 400,000 | | | 390,199 | |
| EnLink Midstream Partners L.P. (E), 4.85%, 7/15/26 | | | 300,000 | | | 299,925 | |
| EnLink Midstream Partners L.P., 5.45%, 6/1/47 | | | 400,000 | | | 386,083 | |
| Enterprise Products Operating LLC, 3.75%, 2/15/25 | | | 1,000,000 | | | 991,449 | |
| Helmerich & Payne International Drilling Co., 4.65%, 3/15/25 | | | 1,000,000 | | | 1,032,593 | |
| Jonah Energy LLC/Jonah Energy Finance Corp. (B) (E), 7.25%, 10/15/25 | | | 500,000 | | | 400,000 | |
| Kinder Morgan Inc. (B), 5%, 2/15/21 | | | 1,000,000 | | | 1,036,174 | |
| Marathon Oil Corp., 2.7%, 6/1/20 | | | 1,000,000 | | | 985,249 | |
| Phillips 66 Partners L.P., 3.605%, 2/15/25 | | | 1,300,000 | | | 1,258,756 | |
| Pioneer Natural Resources Co., 3.45%, 1/15/21 | | | 1,000,000 | | | 1,004,449 | |
| Tosco Corp., 7.8%, 1/1/27 | | | 1,000,000 | | | 1,266,024 | |
| Unit Corp., 6.625%, 5/15/21 | | | 525,000 | | | 525,000 | |
| Valero Energy Corp., 6.625%, 6/15/37 | | | 1,000,000 | | | 1,248,732 | |
| Valero Energy Partners L.P., 4.5%, 3/15/28 | | | 250,000 | | | 246,957 | |
| | | | | | | |
| | | | | | | 11,955,530 | |
| | | | | | | | |
| Financials - 9.6% | | | | | | | |
| AerCap Ireland Capital DAC/AerCap Global Aviation Trust (D), 3.75%, 5/15/19 | | | 450,000 | | | 453,303 | |
| AerCap Ireland Capital DAC/AerCap Global Aviation Trust (D), 3.875%, 1/23/28 | | | 500,000 | | | 471,996 | |
| Air Lease Corp., 3.875%, 4/1/21 | | | 450,000 | | | 454,530 | |
| Air Lease Corp., 3.75%, 2/1/22 | | | 1,000,000 | | | 1,001,330 | |
| American Express Co., 2.5%, 8/1/22 | | | 1,000,000 | | | 959,437 | |
| American International Group Inc., 4.75%, 4/1/48 | | | 500,000 | | | 499,391 | |
| Bank of America Corp., MTN, 3.3%, 1/11/23 | | | 1,000,000 | | | 988,537 | |
| Bank of America Corp., MTN, (3M USD LIBOR + 0.930%) (A), 2.816%, 7/21/23 | | | 500,000 | | | 483,604 | |
| Bank of Montreal, MTN (D), 1.9%, 8/27/21 | | | 1,000,000 | | | 957,091 | |
| Bank of New York Mellon Corp./The, MTN, 2.2%, 8/16/23 | | | 500,000 | | | 469,156 | |
| BB&T Corp., MTN, 2.85%, 10/26/24 | | | 600,000 | | | 571,895 | |
| Berkshire Hathaway Inc., 3.125%, 3/15/26 | | | 250,000 | | | 240,867 | |
| Capital One Financial Corp., 2.5%, 5/12/20 | | | 500,000 | | | 492,387 | |
| Capital One Financial Corp., 3.3%, 10/30/24 | | | 600,000 | | | 571,456 | |
| Cboe Global Markets Inc., 3.65%, 1/12/27 | | | 600,000 | | | 578,855 | |
| Citigroup Inc., 2.75%, 4/25/22 | | | 400,000 | | | 388,849 | |
| Discover Bank, 3.45%, 7/27/26 | | | 500,000 | | | 465,630 | |
| Goldman Sachs Group Inc./The (3M USD LIBOR + 1.201%) (A), 3.272%, 9/29/25 | | | 850,000 | | | 808,397 | |
| Goldman Sachs Group Inc./The, 3.5%, 11/16/26 | | | 300,000 | | | 284,119 | |
| Intercontinental Exchange Inc., 2.35%, 9/15/22 | | | 300,000 | | | 286,159 | |
| JPMorgan Chase & Co., 2.972%, 1/15/23 | | | 300,000 | | | 292,242 | |
| JPMorgan Chase & Co., 3.125%, 1/23/25 | | | 1,000,000 | | | 953,207 | |
| Liberty Mutual Group Inc. (B), 4.25%, 6/15/23 | | | 1,250,000 | | | 1,267,698 | |
| Morgan Stanley, 4.3%, 1/27/45 | | | 1,000,000 | | | 967,878 | |
| Nasdaq Inc., 3.85%, 6/30/26 | | | 175,000 | | | 169,939 | |
| PNC Bank NA, 2.45%, 7/28/22 | | | 500,000 | | | 482,950 | |
| Regions Financial Corp., 3.2%, 2/8/21 | | | 1,000,000 | | | 994,921 | |
| Regions Financial Corp., 2.75%, 8/14/22 | | | 600,000 | | | 578,527 | |
| Synchrony Financial, 3.75%, 8/15/21 | | | 50,000 | | | 50,209 | |
| Synchrony Financial, 3.7%, 8/4/26 | | | 600,000 | | | 554,433 | |
| TD Ameritrade Holding Corp., 3.3%, 4/1/27 | | | 500,000 | | | 482,846 | |
| | | | | | | |
| | | | | | | 18,221,839 | |
See accompanying Notes to Financial Statements.
17
| Madison Funds | April 30, 2018 |
| |
| |
| Madison Core Bond Fund Portfolio of Investments (unaudited) - continued |
| | | | Par Value | | Value (Note 2) |
| | | | | | |
| CORPORATE NOTES AND BONDS - continued | | | | | | | |
| | | | | | | | |
| Health Care - 4.4% | | | | | | | |
| AbbVie Inc., 4.7%, 5/14/45 | | $ | 1,000,000 | | $ | 993,107 | |
| Allergan Funding SCS (D), 4.75%, 3/15/45 | | | 1,000,000 | | | 945,014 | |
| Becton, Dickinson and Co., 2.894%, 6/6/22 | | | 400,000 | | | 386,975 | |
| CVS Health Corp., 4.75%, 12/1/22 | | | 1,000,000 | | | 1,041,338 | |
| CVS Health Corp., 4.3%, 3/25/28 | | | 500,000 | | | 494,571 | |
| CVS Health Corp., 5.125%, 7/20/45 | | | 1,000,000 | | | 1,038,668 | |
| Forest Laboratories LLC (B), 5%, 12/15/21 | | | 200,000 | | | 207,364 | |
| HCA Inc., 3.75%, 3/15/19 | | | 800,000 | | | 802,000 | |
| Humana Inc., 2.5%, 12/15/20 | | | 750,000 | | | 736,712 | |
| Laboratory Corp. of America Holdings, 3.6%, 9/1/27 | | | 300,000 | | | 286,621 | |
| Shire Acquisitions Investments Ireland DAC (D), 1.9%, 9/23/19 | | | 750,000 | | | 736,756 | |
| Zoetis Inc., 3%, 9/12/27 | | | 650,000 | | | 599,863 | |
| | | | | | | |
| | | | | | | 8,268,989 | |
| | | | | | | | |
| Industrials - 2.2% | | | | | | | |
| Carlisle Cos. Inc., 3.5%, 12/1/24 | | | 500,000 | | | 483,964 | |
| CRH America Inc. (B), 3.875%, 5/18/25 | | | 1,000,000 | | | 988,500 | |
| Lockheed Martin Corp., 4.7%, 5/15/46 | | | 1,000,000 | | | 1,066,992 | |
| Masco Corp., 4.375%, 4/1/26 | | | 700,000 | | | 704,375 | |
| Northrop Grumman Corp., 2.93%, 1/15/25 | | | 300,000 | | | 284,408 | |
| United Rentals North America Inc., 4.625%, 7/15/23 | | | 600,000 | | | 609,000 | |
| | | | | | | |
| | | | | | | 4,137,239 | |
| | | | | | | | |
| Information Technology - 2.1% | | | | | | | |
| Analog Devices Inc., 5.3%, 12/15/45 | | | 600,000 | | | 656,550 | |
| Autodesk Inc., 4.375%, 6/15/25 | | | 1,000,000 | | | 1,014,619 | |
| CDW LLC/CDW Finance Corp., 5%, 9/1/23 | | | 200,000 | | | 204,020 | |
| Citrix Systems Inc., 4.5%, 12/1/27 | | | 350,000 | | | 339,616 | |
| Dell International LLC/EMC Corp. (B), 8.35%, 7/15/46 | | | 350,000 | | | 430,954 | |
| Fidelity National Information Services Inc., 3%, 8/15/26 | | | 625,000 | | | 573,709 | |
| Hewlett Packard Enterprise Co., 6.35%, 10/15/45 | | | 350,000 | | | 359,618 | |
| Salesforce.com Inc., 3.7%, 4/11/28 | | | 500,000 | | | 495,192 | |
| | | | | | | |
| | | | | | | 4,074,278 | |
| | | | | | | | |
| Materials - 1.0% | | | | | | | |
| Arconic Inc., 5.125%, 10/1/24 | | | 200,000 | | | 202,813 | |
| Packaging Corp. of America, 3.65%, 9/15/24 | | | 1,000,000 | | | 981,098 | |
| WestRock Co. (B), 3.75%, 3/15/25 | | | 750,000 | | | 737,157 | |
| | | | | | | |
| | | | | | | 1,921,068 | |
| | | | | | | | |
| Real Estate - 1.7% | | | | | | | |
| Boston Properties L.P., 3.65%, 2/1/26 | | | 450,000 | | | 434,143 | |
| Brixmor Operating Partnership L.P., 3.65%, 6/15/24 | | | 500,000 | | | 481,815 | |
| Iron Mountain Inc. (B), 4.875%, 9/15/27 | | | 600,000 | | | 564,750 | |
| SL Green Operating Partnership L.P., 3.25%, 10/15/22 | | | 500,000 | | | 484,437 | |
| Store Capital Corp., 4.5%, 3/15/28 | | | 750,000 | | | 735,189 | |
| WP Carey Inc., 4.25%, 10/1/26 | | | 500,000 | | | 484,988 | |
| | | | | | | |
| | | | | | | 3,185,322 | |
| | | | | | | | |
| Telecommunication Services - 1.5% | | | | | | | |
| AT&T Inc., 4.75%, 5/15/46 | | | 1,000,000 | | | 931,350 | |
| AT&T Inc., 5.15%, 2/14/50 | | | 500,000 | | | 506,588 | |
| Sprint Spectrum Co. LLC/Sprint Spectrum Co. II LLC/Sprint Spectrum Co. III LLC (B), 3.36%, 3/20/23 | | | 437,500 | | | 435,912 | |
| Verizon Communications Inc., 4.4%, 11/1/34 | | | 1,000,000 | | | 967,916 | |
| | | | | | | |
| | | | | | | 2,841,766 | |
| | | | | | | | |
| Utilities - 1.0% | | | | | | | |
| Black Hills Corp., 4.25%, 11/30/23 | | | 1,000,000 | | | 1,014,861 | |
| Duke Energy Corp., 3.75%, 9/1/46 | | | 1,000,000 | | | 897,136 | |
| | | | | | | |
| | | | | | | 1,911,997 | |
| | | | | | | |
Total Corporate Notes and Bonds | | | | | | | |
(Cost $74,872,305) | | | | | | 73,823,335 | |
| | | | | | | | |
| LONG TERM MUNICIPAL BONDS - 5.9% | | | | | | | |
| City of Laredo TX, General Obligation, 6.566%, 2/15/39 | | | 1,500,000 | | | 1,547,715 | |
| County of Palm Beach FL Revenue, 5%, 11/1/33 | | | 1,880,000 | | | 2,004,964 | |
| County of Pasco FL Water & Sewer Revenue, Series B, 6.76%, 10/1/39 | | | 1,500,000 | | | 1,581,195 | |
| East Baton Rouge Sewerage Commission Revenue, Series B, 6.087%, 2/1/45 | | | 2,000,000 | | | 2,097,440 | |
| Northside Independent School District, General Obligation, Series B, (PSF-GTD), 5.741%, 8/15/35 | | | 1,600,000 | | | 1,663,552 | |
| Rancho Water District Financing Authority Revenue, (Prerefunded 8/1/20 @ $100), 6.337%, 8/1/40 | | | 10,000 | | | 10,759 | |
| Rancho Water District Financing Authority Revenue, 6.337%, 8/1/40 | | | 990,000 | | | 1,061,359 | |
| South Dakota State Building Authority Revenue, Series F, 4.7%, 6/1/32 | | | 1,250,000 | | | 1,305,312 | |
| | | | | | | |
Total Long Term Municipal Bonds | | | | | | | |
(Cost $11,176,071) | | | | | | 11,272,296 | |
| | | | | | | | |
| MORTGAGE BACKED SECURITIES - 20.6% | | | | | | | |
| Fannie Mae - 12.1% | | | | | | | |
| 1.125%, 10/19/18 Pool # IE MAE | | | 500,000 | | | 497,974 | |
| 3.5%, 5/1/29 Pool # AW3740 | | | 1,113,533 | | | 1,127,801 | |
| 3%, 9/1/30 Pool # 890696 | | | 1,048,344 | | | 1,042,492 | |
| 3%, 12/1/30 Pool # AL8924 | | | 528,984 | | | 526,359 | |
| 7%, 11/1/31 Pool # 607515 | | | 7,072 | | | 7,744 | |
| 3.5%, 12/1/31 Pool # MA0919 | | | 341,683 | | | 345,992 | |
| 3%, 2/1/32 Pool # AL9867 | | | 692,120 | | | 687,012 | |
| 6.5%, 3/1/32 Pool # 631377 | | | 27,394 | | | 30,519 | |
| 6.5%, 5/1/32 Pool # 636758 | | | 2,145 | | | 2,390 | |
| 7%, 5/1/32 Pool # 644591 | | | 546 | | | 559 | |
| 6.5%, 6/1/32 Pool # 545691 | | | 69,879 | | | 77,850 | |
| 3.5%, 8/1/32 Pool # MA3098 | | | 678,508 | | | 687,272 | |
| 3.5%, 9/1/32 Pool # MA3126 | | | 455,781 | | | 461,670 | |
| 5.5%, 11/1/33 Pool # 555880 | | | 78,319 | | | 85,903 | |
| 5%, 5/1/34 Pool # 780890 | | | 34,019 | | | 36,527 | |
| 7%, 7/1/34 Pool # 792636 | | | 7,659 | | | 7,861 | |
| 4%, 2/1/35 Pool # MA2177 | | | 817,537 | | | 845,180 | |
| 5%, 8/1/35 Pool # 829670 | | | 78,871 | | | 84,646 | |
| 5%, 9/1/35 Pool # 820347 | | | 104,583 | | | 113,262 | |
| 5%, 9/1/35 Pool # 835699 | | | 80,055 | | | 86,616 | |
| 3.5%, 12/1/35 Pool # MA2473 | | | 1,018,024 | | | 1,027,746 | |
| 4.5%, 12/1/35 Pool # 745147 | | | 12,880 | | | 13,488 | |
| 5%, 12/1/35 Pool # 850561 | | | 29,391 | | | 31,570 | |
| 6%, 11/1/36 Pool # 902510 | | | 60,381 | | | 68,519 | |
| 6%, 10/1/37 Pool # 947563 | | | 84,993 | | | 96,468 | |
| 6.5%, 12/1/37 Pool # 889072 | | | 70,182 | | | 78,187 | |
| 6.5%, 8/1/38 Pool # 987711 | | | 173,488 | | | 194,212 | |
| 4%, 9/1/40 Pool # AE3039 | | | 791,630 | | | 812,273 | |
| 4%, 1/1/41 Pool # AB2080 | | | 642,124 | | | 658,950 | |
| 5.5%, 7/1/41 Pool # AL6588 | | | 558,473 | | | 612,028 | |
| 4%, 9/1/41 Pool # AJ1406 | | | 447,956 | | | 459,972 | |
| 4%, 10/1/41 Pool # AJ4046 | | | 788,232 | | | 808,877 | |
| 3.5%, 11/1/41 Pool # AB3867 | | | 351,961 | | | 352,063 | |
| 4%, 3/1/42 Pool # AL1998 | | | 1,225,034 | | | 1,257,130 | |
| 3.5%, 6/1/42 Pool # AO4134 | | | 1,203,269 | | | 1,203,610 | |
| 3.5%, 8/1/42 Pool # AP2133 | | | 710,412 | | | 710,471 | |
| 3%, 9/1/42 Pool # AP6568 | | | 116,713 | | | 113,678 | |
| 3.5%, 9/1/42 Pool # AB6228 | | | 417,338 | | | 417,283 | |
| 4%, 10/1/42 Pool # AP7363 | | | 869,875 | | | 892,695 | |
| 3.5%, 12/1/42 Pool # AQ8892 | | | 140,553 | | | 140,419 | |
| 3.5%, 1/1/43 Pool # AQ9326 | | | 605,239 | | | 606,908 | |
| 3%, 2/1/43 Pool # AL3072 | | | 994,868 | | | 968,875 | |
| 3.5%, 3/1/43 Pool # AT0310 | | | 580,549 | | | 580,596 | |
| 3.5%, 4/1/43 Pool # AR9902 | | | 383,125 | | | 383,260 | |
| 3.5%, 4/1/43 Pool # AT2887 | | | 503,832 | | | 503,353 | |
| 4%, 1/1/45 Pool # AS4257 | | | 265,366 | | | 271,604 | |
| 4.5%, 2/1/45 Pool # MA2193 | | | 797,412 | | | 833,519 | |
| 3.5%, 8/1/45 Pool # AS5645 | | | 916,169 | | | 911,613 | |
| 3.5%, 12/1/45 Pool # AS6309 | | | 431,812 | | | 429,264 | |
| 4.5%, 10/1/46 Pool # MA2783 | | | 180,373 | | | 188,050 | |
| 3%, 1/1/47 Pool # BE0108 | | | 698,538 | | | 676,369 | |
| | | | | | | |
| | | | | | | 23,058,679 | |
| | | | | | | | |
| Freddie Mac - 8.5% | | | | | | | |
| 4.5%, 2/1/25 Pool # J11722 | | | 147,794 | | | 153,136 | |
| 4.5%, 5/1/25 Pool # J12247 | | | 296,743 | | | 307,501 | |
| 8%, 6/1/30 Pool # C01005 | | | 637 | | | 732 | |
| 6.5%, 1/1/32 Pool # C62333 | | | 24,244 | | | 27,309 | |
| 3.5%, 8/1/32 Pool # C91485 | | | 405,182 | | | 410,423 | |
| 4.5%, 6/1/34 Pool # C01856 | | | 443,216 | | | 463,753 | |
| 6.5%, 11/1/36 Pool # C02660 | | | 10,730 | | | 12,087 | |
| 5.5%, 1/1/37 Pool # G04593 | | | 254,281 | | | 278,642 | |
| 5.5%, 11/1/37 Pool # A68787 | | | 162,661 | | | 179,866 | |
| 5.5%, 12/1/38 Pool # G05267 | | | 497,703 | | | 543,933 | |
| 5%, 10/1/39 Pool # G60465 | | | 1,239,785 | | | 1,328,636 | |
| 3.5%, 11/1/40 Pool # G06168 | | | 565,828 | | | 566,506 | |
| 4%, 10/1/41 Pool # Q04092 | | | 931,599 | | | 957,562 | |
| 4.5%, 3/1/42 Pool # G07491 | | | 602,281 | | | 633,989 | |
| 3%, 9/1/42 Pool # C04233 | | | 666,749 | | | 648,886 | |
| 3%, 2/1/43 Pool # Q15767 | | | 479,635 | | | 466,400 | |
| 3%, 4/1/43 Pool # V80025 | | | 478,256 | | | 465,164 | |
| 3%, 4/1/43 Pool # V80026 | | | 476,638 | | | 463,535 | |
| 3.5%, 8/1/44 Pool # Q27927 | | | 637,881 | | | 637,857 | |
| 3%, 7/1/45 Pool # G08653 | | | 962,556 | | | 931,169 | |
| 3.5%, 8/1/45 Pool # Q35614 | | | 750,671 | | | 749,474 | |
| 3.5%, 9/1/45 Pool # G08667 | | | 821,587 | | | 819,519 | |
| 3%, 11/1/45 Pool # G08675 | | | 963,441 | | | 930,978 | |
| 3%, 1/1/46 Pool # G08686 | | | 999,908 | | | 965,674 | |
| 3%, 10/1/46 Pool # G60722 | | | 889,419 | | | 859,207 | |
| 4%, 3/1/47 Pool # Q46801 | | | 1,240,675 | | | 1,269,591 | |
| 3.5%, 11/1/47 Pool # Q52079 | | | 988,176 | | | 982,138 | |
| | | | | | | |
| | | | | | | 16,053,667 | |
| | | | | | | | |
| Ginnie Mae - 0.0% | | | | | | | |
| 6.5%, 2/20/29 Pool # 2714 | | | 9,823 | | | 11,013 | |
| 6.5%, 4/20/31 Pool # 3068 | | | 4,823 | | | 5,447 | |
| 4%, 4/15/39 Pool # 698089 | | | 39,423 | | | 40,344 | |
| | | | | | | |
| | | | | | | 56,804 | |
| | | | | | | |
Total Mortgage Backed Securities | | | | | | | |
(Cost $40,206,853) | | | | | | 39,169,150 | |
See accompanying Notes to Financial Statements.
18
| Madison Funds | April 30, 2018 |
| |
| |
| Madison Core Bond Fund Portfolio of Investments (unaudited) - continued |
| | | | Par Value | | Value (Note 2) |
| | | | | | |
| U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 19.8% | | | | | | | |
| | | | | | | | |
| U.S. Treasury Bonds - 5.9% | | | | | | | |
| 6.625%, 2/15/27 | | $ | 2,000,000 | | $ | 2,576,250 | |
| 5.375%, 2/15/31 | | | 1,250,000 | | | 1,570,947 | |
| 4.500%, 5/15/38 | | | 2,000,000 | | | 2,450,000 | |
| 3.750%, 8/15/41 | | | 750,000 | | | 835,869 | |
| 3.000%, 5/15/45 | | | 1,650,000 | | | 1,622,672 | |
| 2.250%, 8/15/46 | | | 1,500,000 | | | 1,261,348 | |
| 3.000%, 5/15/47 | | | 1,000,000 | | | 981,602 | |
| | | | | | | |
| | | | | | | 11,298,688 | |
| | | | | | | | |
| U.S. Treasury Notes - 13.9% | | | | | | | |
| 3.625%, 8/15/19 | | | 3,500,000 | | | 3,554,414 | |
| 2.625%, 11/15/20 | | | 3,500,000 | | | 3,503,281 | |
| 3.125%, 5/15/21 | | | 3,750,000 | | | 3,801,416 | |
| 2.125%, 8/15/21 | | | 2,000,000 | | | 1,964,844 | |
| 2.000%, 10/31/21 | | | 2,500,000 | | | 2,442,187 | |
| 1.750%, 9/30/22 | | | 4,000,000 | | | 3,832,344 | |
| 2.750%, 2/15/24 | | | 2,000,000 | | | 1,989,531 | |
| 2.125%, 3/31/24 | | | 2,750,000 | | | 2,641,182 | |
| 2.250%, 11/15/25 | | | 1,750,000 | | | 1,671,113 | |
| 1.500%, 8/15/26 | | | 1,000,000 | | | 894,961 | |
| | | | | | | |
| | | | | | | 26,295,273 | |
| | | | | | | |
Total U.S. Government and Agency | | | | | | | |
Obligations (Cost $37,630,522) | | | | | | 37,593,961 | |
| | | | | | | | |
| SHORT-TERM INVESTMENTS - 2.7% | | | | | | | |
| State Street Institutional U.S. Government Money Market Fund, 1.63%, Premier Class | | | 5,082,324 | | | 5,082,324 | |
| | | | | | | |
Total Short-Term Investments | | | | | | | |
(Cost $5,082,324) | | | | | | 5,082,324 | |
| COLLATERAL FOR SECURITIES ON LOAN (F) - 0.4% | | | | | | | |
| State Street Navigator Securities Lending Government Money Market Portfolio, 1.69% | | | 706,090 | | | 706,090 | |
| | | | | | | |
Total Collateral for Securities on | | | | | | | |
Loan (Cost $706,090) | | | | | | 706,090 | |
| | | | | | | |
| | | | | | | | |
| TOTAL INVESTMENTS - 99.2% | | | | | | | |
| (Cost $190,586,607**) | | | | | | 188,164,258 | |
| | | | | | | | |
| NET OTHER ASSETS AND LIABILITIES - 0.8% | | | | | | 1,594,084 | |
| | | | | | | |
| TOTAL NET ASSETS - 100.0% | | | | | $ | 189,758,342 | |
| | | | | | | |
| ** | | Aggregate cost for Federal tax purposes was $190,586,607. |
| (A) | | Floating rate or variable rate note. Rate shown is as of April 30, 2018. |
| (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) | | Coupon rate may change based on changes of the underlying collateral or prepayments of principal. The coupon rate shown represents the rate at period end. |
| (D) | | Notes and bonds, issued by foreign entities, denominated in U.S. dollars. The aggregate of these securities is 2.4% of total net assets. |
| (E) | | A portion of securities on loan with an aggregate value of $691,546; cash collateral (included in liabilities) of $706,090 was received with which the Fund invested in the State Street Navigator Securities Lending Government Money Market Portfolio. |
| (F) | | Represents investments of cash collateral received in connection with securities lending. |
| LIBOR | | London Interbank Offered Rate |
| MTN | | Medium Term Note. |
| PLC | | Public Limited Company. |
| PSF-GTD | | Permanent School Fund Guaranteed. |
See accompanying Notes to Financial Statements.
19
| Madison Funds | April 30, 2018 |
| |
| |
| Madison Corporate Bond Fund Portfolio of Investments |
| | | | Par Value | | Value (Note 2) |
| | | | | | |
| CORPORATE NOTES AND BONDS - 94.4% | | | | | | | |
| | | | | | | | |
| Consumer Discretionary - 13.3% | | | | | | | |
| Amazon.com Inc. (A), 2.8%, 8/22/24 | | $ | 100,000 | | $ | 96,245 | |
| Amazon.com Inc., 3.8%, 12/5/24 | | | 200,000 | | | 203,885 | |
| Aptiv PLC (B), 3.15%, 11/19/20 | | | 200,000 | | | 198,894 | |
| CCO Holdings LLC/CCO Holdings Capital Corp. (A), 5.875%, 5/1/27 | | | 100,000 | | | 97,750 | |
| Charter Communications Operating LLC/Charter Communications Operating Capital Corp., 4.464%, 7/23/22 | | | 100,000 | | | 101,953 | |
| Comcast Corp., 6.45%, 3/15/37 | | | 300,000 | | | 373,394 | |
| D.R. Horton Inc., 2.55%, 12/1/20 | | | 100,000 | | | 98,129 | |
| Discovery Communications LLC, 5%, 9/20/37 | | | 200,000 | | | 195,919 | |
| GameStop Corp. (A), 6.75%, 3/15/21 | | | 50,000 | | | 50,625 | |
| General Motors Financial Co. Inc., 3.2%, 7/6/21 | | | 200,000 | | | 197,525 | |
| Georgia-Pacific LLC (A), 3.163%, 11/15/21 | | | 100,000 | | | 99,739 | |
| GLP Capital L.P./GLP Financing II Inc., 4.875%, 11/1/20 | | | 25,000 | | | 25,555 | |
| Harman International Industries Inc., 4.15%, 5/15/25 | | | 100,000 | | | 99,484 | |
| Lowe’s Cos. Inc., 2.5%, 4/15/26 | | | 100,000 | | | 91,545 | |
| McDonald’s Corp., MTN, 3.5%, 3/1/27 | | | 100,000 | | | 97,513 | |
| McDonald’s Corp., MTN, 4.875%, 12/9/45 | | | 50,000 | | | 52,940 | |
| Newell Brands Inc., 4.2%, 4/1/26 | | | 100,000 | | | 98,192 | |
| Newell Brands Inc., 5.5%, 4/1/46 | | | 100,000 | | | 103,684 | |
| Omnicom Group Inc./Omnicom Capital Inc., 3.6%, 4/15/26 | | | 200,000 | | | 191,491 | |
| Sirius XM Radio Inc. (A), 6%, 7/15/24 | | | 125,000 | | | 128,462 | |
| Toll Brothers Finance Corp., 4%, 12/31/18 | | | 50,000 | | | 50,000 | |
| Walgreens Boots Alliance Inc., 4.5%, 11/18/34 | | | 150,000 | | | 145,976 | |
| | | | | | | |
| | | | | | | 2,798,900 | |
| | | | | | | | |
| Consumer Staples - 1.4% | | | | | | | |
| Anheuser-Busch InBev Finance Inc., 4.9%, 2/1/46 | | | 150,000 | | | 155,618 | |
| Anheuser-Busch InBev Worldwide Inc., 4.6%, 4/15/48 | | | 100,000 | | | 99,123 | |
| Tyson Foods Inc., 3.55%, 6/2/27 | | | 50,000 | | | 47,493 | |
| | | | | | | |
| | | | | | | 302,234 | |
| | | | | | | | |
| Energy - 12.9% | | | | | | | |
| Andeavor, 3.8%, 4/1/28 | | | 100,000 | | | 96,261 | |
| Antero Resources Corp., 5.625%, 6/1/23 | | | 50,000 | | | 51,062 | |
| Boardwalk Pipelines L.P., 4.45%, 7/15/27 | | | 100,000 | | | 97,550 | |
| BP Capital Markets PLC (B), 3.119%, 5/4/26 | | | 100,000 | | | 95,678 | |
| Chevron Corp., 3.191%, 6/24/23 | | | 200,000 | | | 198,785 | |
| ConocoPhillips Co., 4.15%, 11/15/34 | | | 75,000 | | | 75,896 | |
| Devon Energy Corp., 5.6%, 7/15/41 | | | 100,000 | | | 110,301 | |
| EnLink Midstream Partners L.P., 4.85%, 7/15/26 | | | 50,000 | | | 49,987 | |
| EnLink Midstream Partners L.P., 5.45%, 6/1/47 | | | 50,000 | | | 48,260 | |
| Enterprise Products Operating LLC, 4.45%, 2/15/43 | | | 200,000 | | | 193,939 | |
| Exxon Mobil Corp., 4.114%, 3/1/46 | | | 50,000 | | | 51,170 | |
| Helmerich & Payne International Drilling Co., 4.65%, 3/15/25 | | | 100,000 | | | 103,259 | |
| Kinder Morgan Inc. (A), 5%, 2/15/21 | | | 50,000 | | | 51,809 | |
| Marathon Oil Corp., 2.7%, 6/1/20 | | | 200,000 | | | 197,050 | |
| Marathon Petroleum Corp., 5.125%, 3/1/21 | | | 250,000 | | | 261,428 | |
| Phillips 66, 4.65%, 11/15/34 | | | 100,000 | | | 103,510 | |
| Phillips 66 Partners L.P., 3.605%, 2/15/25 | | | 200,000 | | | 193,655 | |
| Schlumberger Holdings Corp. (A), 2.35%, 12/21/18 | | | 200,000 | | | 199,358 | |
| Valero Energy Corp., 6.625%, 6/15/37 | | | 350,000 | | | 437,056 | |
| Valero Energy Partners L.P., 4.5%, 3/15/28 | | | 100,000 | | | 98,783 | |
| | | | | | | |
| | | | | | | 2,714,797 | |
| | | | | | | | |
| Financials - 33.7% | | | | | | | |
| Banks - 22.6% | | | | | | | |
| Bank of America Corp., MTN, 2.503%, 10/21/22 | | | 200,000 | | | 191,222 | |
| Bank of America Corp., MTN, 3.3%, 1/11/23 | | | 200,000 | | | 197,707 | |
| Bank of America Corp., MTN, (3M USD LIBOR + 0.930%) (C), 2.816%, 7/21/23 | | | 100,000 | | | 96,721 | |
| Bank of America Corp., MTN, (3M USD LIBOR + 1.090%) (C), 3.093%, 10/1/25 | | | 100,000 | | | 95,260 | |
| Bank of Montreal, MTN (B), 1.9%, 8/27/21 | | | 100,000 | | | 95,709 | |
| BB&T Corp, MTN, 2.85%, 10/26/24 | | | 200,000 | | | 190,632 | |
| Capital One Financial Corp., 2.5%, 5/12/20 | | | 100,000 | | | 98,477 | |
| Capital One Financial Corp., 3.3%, 10/30/24 | | | 200,000 | | | 190,485 | |
| Citigroup Inc., (3M USD LIBOR + 1.192%) (C), 4.075%, 4/23/29 | | | 150,000 | | | 147,351 | |
| Citigroup Inc., 2.75%, 4/25/22 | | | 100,000 | | | 97,212 | |
| Citigroup Inc., 2.7%, 10/27/22 | | | 250,000 | | | 240,700 | |
| Discover Bank, 3.45%, 7/27/26 | | | 100,000 | | | 93,126 | |
| Goldman Sachs Group Inc./The, 5.75%, 1/24/22 | | | 100,000 | | | 107,616 | |
| Goldman Sachs Group Inc./The, 3.625%, 1/22/23 | | | 200,000 | | | 199,176 | |
| Goldman Sachs Group Inc./The, 3.5%, 11/16/26 | | | 200,000 | | | 189,413 | |
| Huntington National Bank/The, 2.2%, 4/1/19 | | | 300,000 | | | 298,748 | |
| JPMorgan Chase & Co., 4.25%, 10/15/20 | | | 100,000 | | | 102,607 | |
| JPMorgan Chase & Co., 2.972%, 1/15/23 | | | 200,000 | | | 194,828 | |
| JPMorgan Chase & Co., 3.125%, 1/23/25 | | | 200,000 | | | 190,641 | |
| KeyCorp, MTN, 5.1%, 3/24/21 | | | 250,000 | | | 262,339 | |
| Morgan Stanley, 2.8%, 6/16/20 | | | 200,000 | | | 198,602 | |
| Morgan Stanley, MTN, 3.7%, 10/23/24 | | | 200,000 | | | 197,432 | |
| Morgan Stanley, MTN, 3.875%, 1/27/26 | | | 100,000 | | | 98,559 | |
| PNC Bank NA, 2.45%, 7/28/22 | | | 250,000 | | | 241,475 | |
| PNC Financial Services Group Inc./The, 3.3%, 3/8/22 | | | 100,000 | | | 99,609 | |
| Regions Financial Corp., 3.2%, 2/8/21 | | | 250,000 | | | 248,730 | |
| Regions Financial Corp, 275%, 8/14/22 | | | 200,000 | | | 192,843 | |
| US Bancorp, MTN, 2.35%, 1/29/21 | | | 200,000 | | | 196,402 | |
| | | | | | | |
| | | | | | | 4,753,622 | |
| | | | | | | | |
| Diversified Financial Services - 6.5% | | | | | | | |
| AerCap Ireland Capital DAC/AerCap Global Aviation Trust (B), 3.75%, 5/15/19 | | | 150,000 | | | 151,101 | |
| AerCap Ireland Capital DAC/AerCap Global Aviation Trust (B), 3.875%, 1/23/28 | | | 150,000 | | | 141,599 | |
| Affiliated Managers Group Inc., 4.25%, 2/15/24 | | | 300,000 | | | 305,038 | |
| Air Lease Corp., 3.625%, 4/1/27 | | | 100,000 | | | 93,324 | |
| American Express Co., 2.5%, 8/1/22 | | | 200,000 | | | 191,887 | |
| Cboe Global Markets Inc., 3.65%, 1/12/27 | | | 150,000 | | | 144,714 | |
| Intercontinental Exchange Inc., 2.35%, 9/15/22 | | | 100,000 | | | 95,386 | |
| Nasdaq Inc., 3.85%, 6/30/26 | | | 50,000 | | | 48,554 | |
| Synchrony Financial, 3.7%, 8/4/26 | | | 100,000 | | | 92,406 | |
| TD Ameritrade Holding Corp., 3.3%, 4/1/27 | | | 100,000 | | | 96,569 | |
| | | | | | | |
| | | | | | | 1,360,578 | |
| | | | | | | | |
| Insurance - 4.6% | | | | | | | |
| American International Group Inc., 3.875%, 1/15/35 | | | 200,000 | | | 183,749 | |
| Berkshire Hathaway Inc., 3.125%, 3/15/26 | | | 50,000 | | | 48,173 | |
| Liberty Mutual Group Inc. (A), 4.25%, 6/15/23 | | | 100,000 | | | 101,416 | |
| MetLife Inc., 3.6%, 4/10/24 | | | 100,000 | | | 100,043 | |
| New York Life Global Funding (A), 1.95%, 2/11/20 | | | 200,000 | | | 196,478 | |
| Old Republic International Corp., 3.875%, 8/26/26 | | | 50,000 | | | 48,333 | |
| Prudential Financial Inc., MTN, 3.5%, 5/15/24 | | | 300,000 | | | 298,996 | |
| | | | | | | |
| | | | | | | 977,188 | |
| | | | | | | |
| | | | | | | 7,091,388 | |
| | | | | | | | |
| Health Care - 5.7% | | | | | | | |
| AbbVie Inc., 4.7%, 5/14/45 | | | 100,000 | | | 99,311 | |
| AbbVie Inc., 4.45%, 5/14/46 | | | 100,000 | | | 95,241 | |
| Actavis Funding SCS (B), 4.55%, 3/15/35 | | | 130,000 | | | 122,423 | |
| CVS Health Corp., 5.125%, 7/20/45 | | | 100,000 | | | 103,867 | |
| Express Scripts Holding Co., 4.75%, 11/15/21 | | | 200,000 | | | 207,131 | |
| HCA Inc., 3.75%, 3/15/19 | | | 100,000 | | | 100,250 | |
| Laboratory Corp. of America Holdings, 3.6%, 9/1/27 | | | 100,000 | | | 95,541 | |
| UnitedHealth Group Inc., 2.875%, 3/15/23 | | | 200,000 | | | 195,185 | |
| Zoetis Inc., 3%, 9/12/27 | | | 200,000 | | | 184,573 | |
| | | | | | | |
| | | | | | | 1,203,522 | |
| | | | | | | | |
| Industrials - 8.0% | | | | | | | |
| Burlington Northern Santa Fe LLC, 4.45%, 3/15/43 | | | 200,000 | | | 207,649 | |
| Carlisle Cos. Inc., 3.5%, 12/1/24 | | | 100,000 | | | 96,793 | |
| Caterpillar Inc., 5.2%, 5/27/41 | | | 20,000 | | | 23,389 | |
| CRH America Inc. (A), 3.875%, 5/18/25 | | | 200,000 | | | 197,700 | |
| Fortive Corp., 2.35%, 6/15/21 | | | 100,000 | | | 96,951 | |
| General Dynamics Corp., 1.875%, 8/15/23 | | | 100,000 | | | 92,418 | |
| Lockheed Martin Corp., 2.9%, 3/1/25 | | | 200,000 | | | 189,895 | |
| Masco Corp., 4.375%, 4/1/26 | | | 100,000 | | | 100,625 | |
| Norfolk Southern Corp., 3.25%, 12/1/21 | | | 200,000 | | | 199,702 | |
| Northrop Grumman Corp., 2.93%, 1/15/25 | | | 100,000 | | | 94,803 | |
| Textron Inc., 3.875%, 3/1/25 | | | 200,000 | | | 197,278 | |
| Verisk Analytics Inc., 4%, 6/15/25 | | | 200,000 | | | 198,660 | |
| | | | | | | |
| | | | | | | 1,695,863 | |
| | | | | | | | |
| Information Technology - 6.2% | | | | | | | |
| Analog Devices Inc., 5.3%, 12/15/45 | | | 50,000 | | | 54,712 | |
| Apple Inc., 2.25%, 2/23/21 | | | 200,000 | | | 196,656 | |
| CDW LLC/CDW Finance Corp., 5%, 9/1/23 | | | 50,000 | | | 51,005 | |
| Cisco Systems Inc., 2.2%, 2/28/21 | | | 150,000 | | | 147,313 | |
| Citrix Systems Inc., 4.5%, 12/1/27 | | | 35,000 | | | 33,962 | |
| Dell International LLC/EMC Corp. (A), 8.35%, 7/15/46 | | | 75,000 | | | 92,347 | |
| Fidelity National Information Services Inc., 3%, 8/15/26 | | | 100,000 | | | 91,794 | |
| Fiserv Inc., 2.7%, 6/1/20 | | | 200,000 | | | 198,300 | |
| Intel Corp. (A), 3.734%, 12/8/47 | | | 108,000 | | | 101,118 | |
| Microsoft Corp., 3.5%, 2/12/35 | | | 100,000 | | | 97,242 | |
| NVIDIA Corp., 2.2%, 9/16/21 | | | 100,000 | | | 97,045 | |
| Oracle Corp., 4%, 7/15/46 | | | 100,000 | | | 96,714 | |
| Salesforce.com Inc., 3.7%, 4/11/28 | | | 50,000 | | | 49,519 | |
| | | | | | | |
| | | | | | | 1,307,727 | |
See accompanying Notes to Financial Statements.
20
| Madison Funds | April 30, 2018 |
| |
| |
| Madison Corporate Bond Fund Portfolio of Investments (unaudited) - continued |
| | | | Par Value | | Value (Note 2) |
| | | | | | |
| CORPORATE NOTES AND BONDS - continued | | | | | | | |
| | | | | | | | |
| Materials - 4.0% | | | | | | | |
| Arconic Inc., 5.125%, 10/1/24 | | $ | 50,000 | | $ | 50,703 | |
| Dow Chemical Co./The, 4.125%, 11/15/21 | | | 200,000 | | | 204,403 | |
| Nutrien Ltd. (B), 3.375%, 3/15/25 | | | 200,000 | | | 190,383 | |
| Packaging Corp. of America, 3.65%, 9/15/24 | | | 300,000 | | | 294,330 | |
| WestRock Co. (A), 3.75%, 3/15/25 | | | 100,000 | | | 98,288 | |
| | | | | | | |
| | | | | | | 838,107 | |
| Real Estate - 3.8% | | | | | | | |
| Boston Properties L.P., 3.65%, 2/1/26 | | | 100,000 | | | 96,476 | |
| Iron Mountain Inc. (A), 4.875%, 9/15/27 | | | 100,000 | | | 94,125 | |
| Simon Property Group L.P., 4.125%, 12/1/21 | | | 200,000 | | | 204,760 | |
| SL Green Operating Partnership L.P., 3.25%, 10/15/22 | | | 100,000 | | | 96,887 | |
| WP Carey Inc., 4.6%, 4/1/24 | | | 200,000 | | | 202,007 | |
| WP Carey Inc., 4.25%, 10/1/26 | | | 100,000 | | | 96,998 | |
| | | | | | | |
| | | | | | | 791,253 | |
| Telecommunication Services - 5.0% | | | | | | | |
| AT&T Inc., 5%, 3/1/21 | | | 200,000 | | | 209,069 | |
| AT&T Inc., 4.75%, 5/15/46 | | | 75,000 | | | 69,851 | |
| AT&T Inc., 5.15%, 2/14/50 | | | 100,000 | | | 101,318 | |
| Harris Corp., 5.054%, 4/27/45 | | | 160,000 | | | 173,190 | |
| Sprint Spectrum Co. LLC/Sprint Spectrum | | | | | | | |
| Co. II LLC/Sprint Spectrum Co. III LLC (A), 3.36%, 3/20/23 | | | 87,500 | | | 87,183 | |
| Verizon Communications Inc., 5.15%, 9/15/23 | | | 200,000 | | | 215,061 | |
| Verizon Communications Inc., 4.4%, 11/1/34 | | | 200,000 | | | 193,583 | |
| | | | | | | |
| | | | | | | 1,049,255 | |
| Utilities - 0.4% | | | | | | | |
| Duke Energy Corp., 3.75%, 9/1/46 | | | 100,000 | | | 89,714 | |
| | | | | | | |
Total Corporate Notes and Bonds | | | | | | | |
(Cost $20,087,972) | | | | | | 19,882,760 | |
| | | | | | | | |
| LONG TERM MUNICIPAL BONDS - 2.0% | | | | | | | |
| County of Palm Beach FL Revenue, 5%, 11/1/33 | | | 200,000 | | | 213,294 | |
| County of Pasco FL Water & Sewer | | | | | | | |
| Revenue, Series B, 6.76%, 10/1/39 | | | 200,000 | | | 210,826 | |
| | | | | | | |
Total Long Term Municipal Bonds | | | | | | | |
(Cost $421,804) | | | | | | 424,120 | |
| | | | | | | | |
| SHORT-TERM INVESTMENTS - 2.8% | | | | | | | |
| State Street Institutional U.S. Government | | | | | | | |
| Money Market Fund, 1.63%, Premier Class | | | 582,745 | | $ | 582,745 | |
| | | | | | | |
| | | | | | | | |
Total Short-Term Investments | | | | | | | |
(Cost $582,745) | | | | | | 582,745 | |
| | | | | | | |
| | | | | | | | |
| TOTAL INVESTMENTS - 99.2% | | | | | | | |
| (Cost $21,092,521**) | | | | | | 20,889,625 | |
| | | | | | | | |
| NET OTHER ASSETS AND LIABILITIES - 0.8% | | | | | | 172,144 | |
| | | | | | | |
| | | | | | | | |
| TOTAL NET ASSETS - 100.0% | | | | | $ | 21,061,769 | |
| | | | | | | |
| ** | | Aggregate cost for Federal tax purposes was $21,092,521. |
| (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 4.7% of total net assets. |
| (C) | | Floating rate or variable rate note. Rate shown is as of April 30, 2018. |
| LIBOR | | London Interbank Offered Rate |
| 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 - 91.1% | | | | | | | |
| | | | | | | | |
| Consumer Discretionary - 19.2% | | | | | | | |
| Cablevision Systems Corp., 5.875%, 9/15/22 | | $ | 250,000 | | $ | 246,250 | |
| CCO Holdings LLC / CCO Holdings Capital Corp. (A), 5.875%, 4/1/24 | | | 300,000 | | | 304,170 | |
| Deck Chassis Acquisition Inc. (A), 10%, 6/15/23 | | | 150,000 | | | 158,250 | |
| Diamond Resorts International Inc. (A), 7.75%, 9/1/23 | | | 250,000 | | | 269,375 | |
| DISH DBS Corp., 6.75%, 6/1/21 | | | 500,000 | | | 497,500 | |
| GameStop Corp. (A) (B), 6.75%, 3/15/21 | | | 325,000 | | | 329,062 | |
| IRB Holding Corp. (A), 6.75%, 2/15/26 | | | 250,000 | | | 241,250 | |
| Jack Ohio Finance LLC / Jack Ohio Finance 1 Corp. (A), 6.75%, 11/15/21 | | | 250,000 | | | 258,125 | |
| Outfront Media Capital LLC / Outfront Media Capital Corp., 5.625%, 2/15/24 | | | 500,000 | | | 505,325 | |
| Penske Automotive Group Inc., 5.75%, 10/1/22 | | | 250,000 | | | 256,719 | |
| Pinnacle Entertainment Inc., 5.625%, 5/1/24 | | | 250,000 | | | 261,250 | |
| Scientific Games International Inc. (A), 5%, 10/15/25 | | | 300,000 | | | 289,785 | |
| Sirius XM Radio Inc. (A), 4.625%, 5/15/23 | | | 250,000 | | | 246,875 | |
| Univision Communications Inc. (A), 5.125%, 5/15/23 | | | 325,000 | | | 308,750 | |
| | | | | | | |
| | | | | | | 4,172,686 | |
| Consumer Staples - 8.7% | | | | | | | |
| ACCO Brands Corp. (A), 5.25%, 12/15/24 | | | 250,000 | | | 250,000 | |
| Avon International Operations Inc. (A), 7.875%, 8/15/22 | | | 250,000 | | | 255,000 | |
| Dean Foods Co. (A) (B), 6.5%, 3/15/23 | | | 250,000 | | | 239,688 | |
| JBS USA LUX S.A. / JBS USA Finance Inc. (A) (C), 6.75%, 2/15/28 | | | 250,000 | | | 240,000 | |
| Pilgrim’s Pride Corp. (A), 5.75%, 3/15/25 | | | 350,000 | | | 342,125 | |
| Post Holdings Inc. (A), 5.5%, 3/1/25 | | | 250,000 | | | 245,625 | |
| Simmons Foods Inc. (A), 5.75%, 11/1/24 | | | 375,000 | | | 319,372 | |
| | | | | | | |
| | | | | | | 1,891,810 | |
| Energy - 17.2% | | | | | | | |
| American Midstream Partners L.P. / | | | | | | | |
| American Midstream Finance Corp. (A), 8.5%, 12/15/21 | | | 375,000 | | | 373,125 | |
| Andeavor Logistics L.P. / Tesoro Logistics Finance Corp., 6.375%, 5/1/24 | | | 250,000 | | | 266,250 | |
| Berry Petroleum Co. LLC (A), 7%, 2/15/26 | | | 125,000 | | | 128,125 | |
| Carrizo Oil & Gas Inc. (B), 6.25%, 4/15/23 | | | 375,000 | | | 384,375 | |
| Indigo Natural Resources LLC (A), 6.875%, 2/15/26 | | | 250,000 | | | 240,000 | |
| Jonah Energy LLC / Jonah Energy Finance | | | | | | | |
| Corp. (A) (B), 7.25%, 10/15/25 | | | 500,000 | | | 400,000 | |
| Murphy Oil USA Inc., 5.625%, 5/1/27 | | | 400,000 | | | 398,000 | |
| QEP Resources Inc., 5.375%, 10/1/22 | | | 300,000 | | | 300,000 | |
| SM Energy Co. (B), 6.75%, 9/15/26 | | | 100,000 | | | 101,750 | |
| Southern Star Central Corp. (A), 5.125%, 7/15/22 | | | 300,000 | | | 305,250 | |
| Sunoco L.P. / Sunoco Finance Corp. (A), 5.875%, 3/15/28 | | | 250,000 | | | 242,812 | |
| Unit Corp., 6.625%, 5/15/21 | | | 600,000 | | | 600,000 | |
| | | | | | | |
| | | | | | | 3,739,687 | |
| Financials - 11.2% | | | | | | | |
| Acrisure LLC / Acrisure Finance Inc. (A), 7%, 11/15/25 | | | 250,000 | | | 236,300 | |
| Donnelley Financial Solutions Inc., 8.25%, 10/15/24 | | | 400,000 | | | 424,000 | |
| Equinix Inc., 5.875%, 1/15/26 | | | 250,000 | | | 258,750 | |
| FBM Finance Inc. (A), 8.25%, 8/15/21 | | | 250,000 | | | 263,125 | |
| Jefferies Finance LLC / JFIN Co-Issuer Corp. (A), 7.25%, 8/15/24 | | | 250,000 | | | 247,813 | |
| MPT Operating Partnership L.P. / MPT Finance Corp., 5%, 10/15/27 | | | 250,000 | | | 236,875 | |
| Nationstar Mortgage LLC / Nationstar Capital Corp., 6.5%, 7/1/21 | | | 300,000 | | | 303,750 | |
| Quicken Loans Inc. (A), 5.75%, 5/1/25 | | | 250,000 | | | 245,000 | |
| Solera LLC / Solera Finance Inc. (A), 10.5%, 3/1/24 | | | 200,000 | | | 222,500 | |
| | | | | | | |
| | | | | | | 2,438,113 | |
| Health Care - 5.5% | | | | | | | |
| Acadia Healthcare Co. Inc., 5.125%, 7/1/22 | | | 250,000 | | | 250,000 | |
| Avantor Inc. (A), 6%, 10/1/24 | | | 300,000 | | | 301,500 | |
| HCA Inc., 5.875%, 2/15/26 | | | 250,000 | | | 253,125 | |
| Teva Pharmaceutical Finance Netherlands III BV (A) (B) (C), 6%, 4/15/24 | | | 100,000 | | | 97,036 | |
| Valeant Pharmaceuticals International Inc. | | | | | | | |
| (A) (C), 5.625%, 12/1/21 | | | 300,000 | | | 290,250 | |
| | | | | | | |
| | | | | | | 1,191,911 | |
| Industrials - 14.0% | | | | | | | |
| ARD Finance S.A., 7.125% Cash, 7.875 PIK | | | | | | | |
| (C), 7.125%, 9/15/23 | | | 250,000 | | | 255,625 | |
| Ashtead Capital Inc. (A), 4.125%, 8/15/25 | | | 260,000 | | | 247,000 | |
| Avis Budget Car Rental LLC / Avis Budget Finance Inc. (A), 5.25%, 3/15/25 | | | 250,000 | | | 240,000 | |
| Bombardier Inc. (A) (C), 8.75%, 12/1/21 | | | 250,000 | | | 278,207 | |
| DAE Funding LLC (A), 5%, 8/1/24 | | | 250,000 | | | 240,950 | |
| GFL Environmental Inc. (A) (C), 5.375%, 3/1/23 | | | 250,000 | | | 247,500 | |
| Herc Rentals Inc. (A), 7.5%, 6/1/22 | | | 240,000 | | | 254,400 | |
| Mueller Industries Inc., 6%, 3/1/27 | | | 250,000 | | | 248,125 | |
| Nielsen Finance LLC / Nielsen Finance Co. (A), 5%, 4/15/22 | | | 200,000 | | | 201,520 | |
| Prime Security Services Borrower LLC /Prime Finance Inc. (A), 9.25%, 5/15/23 | | | 101,000 | | | 108,323 | |
| Summit Materials LLC / Summit Materials Finance Corp., 8.5%, 4/15/22 | | | 250,000 | | | 270,312 | |
| Tennant Co., 5.625%, 5/1/25 | | | 250,000 | | | 254,733 | |
| Waste Pro USA Inc. (A), 5.5%, 2/15/26 | | | 200,000 | | | 197,940 | |
| | | | | | | |
| | | | | | | 3,044,635 | |
| See accompanying Notes to Financial Statements. |
| | |
| |
| | 21 |
| Madison Funds | April 30, 2018 |
| |
| |
| Madison High Income Fund Portfolio of Investments (unaudited) - continued |
| | | | Par Value | | Value (Note 2) | |
| | | | | | | |
| CORPORATE NOTES AND BONDS - continued | | | | | | | |
| | | | | | | | |
| Information Technology - 2.4% | | | | | | | |
| Alliance Data Systems Corp. (A), 5.875%, 11/1/21 | | $ | 100,000 | | $ | 101,750 | |
| Diebold Nixdorf Inc., 8.5%, 4/15/24 | | | 395,000 | | | 409,813 | |
| | | | | | | |
| | | | | | | 511,563 | |
| Materials - 3.6% | | | | | | | |
| Cornerstone Chemical Co. (A), 6.75%, 8/15/24 | | | 250,000 | | | 247,500 | |
| Rayonier AM Products Inc. (A), 5.5%, 6/1/24 | | | 550,000 | | | 532,125 | |
| | | | | | | |
| | | | | | | 779,625 | |
| Real Estate - 1.8% | | | | | | | |
| Iron Mountain Inc., 5.75%, 8/15/24 | | | 400,000 | | | 393,840 | |
| | | | | | | |
| | | | | | | | |
| Telecommunication Services - 4.1% | | | | | | | |
| Altice Luxembourg S.A. (A) (B) (C), 7.625%, 2/15/25 | | | 250,000 | | | 225,312 | |
| Frontier Communications Corp. (A) (B), 8.5%, 4/1/26 | | | 150,000 | | | 145,875 | |
| Inmarsat Finance PLC (A) (C), 6.5%, 10/1/24 | | | 300,000 | | | 294,000 | |
| Sprint Spectrum Co. LLC / Sprint Spectrum Co. II LLC / Sprint Spectrum Co. III LLC (A), 3.36%, 3/20/23 | | | 218,750 | | | 217,956 | |
| | | | | | | |
| | | | | | | 883,143 | |
| Utilities - 3.4% | | | | | | | |
| AmeriGas Partners L.P. / AmeriGas Finance Corp., 5.5%, 5/20/25 | | | 250,000 | | | 245,625 | |
| Calpine Corp., 5.5%, 2/1/24 | | | 300,000 | | | 275,250 | |
| NRG Energy Inc., 6.25%, 5/1/24 | | | 200,000 | | | 206,750 | |
| | | | | | | |
| | | | | | | 727,625 | |
| | | | | | | |
Total Corporate Notes and Bonds | | | | | | | |
(Cost $19,823,628) | | | | | | 19,774,638 | |
| | | | Shares | | | | |
| SHORT-TERM INVESTMENTS - 7.6% | | | | | | | |
| State Street Institutional U.S. Government | | | | | | | |
| Money Market Fund, 1.63%, Premier Class | | | 1,638,916 | | | 1,638,916 | |
| | | | | | | |
| | | | | | | | |
Total Short-Term Investments | | | | | | | |
(Cost $1,638,916) | | | | | | 1,638,916 | |
| | | | | | | | |
| COLLATERAL FOR SECURITIES ON | | | | | | | |
| LOAN (D) - 8.9% | | | | | | | |
| State Street Navigator Securities Lending | | | | | | | |
| Government Money Market Portfolio, 1.69% | | | 1,932,803 | | | 1,932,803 | |
| | | | | | | |
| | | | | | | | |
Total Collateral for Securities on Loan | | | | | | | |
(Cost $1,932,803) | | | | | | 1,932,803 | |
| | | | | | | |
| | | | | | | | |
| TOTAL INVESTMENTS - 107.6% | | | | | | | |
| (Cost $23,395,347**) | | | | | | 23,346,357 | |
| NET OTHER ASSETS AND LIABILITIES - (7.6%) | | | | | | (1,647,681 | ) |
| | | | | | | |
| TOTAL NET ASSETS - 100.0% | | | | | $ | 21,698,676 | |
| | | | | | | |
| ** | | Aggregate cost for Federal tax purposes was $23,395,347. |
| (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) | | A portion of securities on loan with an aggregate value of $1,895,228; cash collateral (included in liabilities) of $1,932,803 was received with which the Fund invested in the State Street Navigator Securities Lending Government Money Market Portfolio. |
| (C) | | Notes and bonds, issued by foreign entities, denominated in U.S. dollars. The aggregate of these securities is 8.9% of total net assets. |
| (D) | | Represents investments of cash collateral received in connection with securities lending. |
| PIK | | Payment in Kind. |
| PLC | | Public Limited Company. |
| |
| Madison Diversified Income Fund Portfolio of Investments (unaudited) |
| | | | Shares | | | Value (Note 2) | |
| | | | | | | | |
| COMMON STOCKS - 63.0% | | | | | | | |
| | | | | | | | |
| Consumer Discretionary - 6.9% | | | | | | | |
| Carnival Corp. | | | 31,500 | | $ | 1,986,390 | |
| Home Depot Inc./The | | | 14,500 | | | 2,679,600 | |
| McDonald’s Corp. | | | 10,000 | | | 1,674,400 | |
| Starbucks Corp. | | | 39,500 | | | 2,274,015 | |
| TJX Cos. Inc./The | | | 27,000 | | | 2,290,950 | |
| | | | | | | |
| | | | | | | 10,905,355 | |
| Consumer Staples - 6.0% | | | | | | | |
| Diageo PLC, ADR | | | 17,000 | | | 2,413,320 | |
| JM Smucker Co./The | | | 9,000 | | | 1,026,720 | |
| Nestle S.A., ADR | | | 31,000 | | | 2,398,160 | |
| PepsiCo Inc. | | | 19,500 | | | 1,968,330 | |
| Procter & Gamble Co./The | | | 23,500 | | | 1,699,990 | |
| | | | | | | |
| | | | | | | 9,506,520 | |
| Energy - 6.0% | | | | | | | |
| Chevron Corp. | | | 20,800 | | | 2,602,288 | |
| Exxon Mobil Corp. | | | 51,500 | | | 4,004,125 | |
| Schlumberger Ltd. | | | 41,500 | | | 2,845,240 | |
| | | | | | | |
| | | | | | | 9,451,653 | |
| Financials - 10.9% | | | | | | | |
| BB&T Corp. | | | 30,500 | | | 1,610,400 | |
| Chubb Ltd. | | | 10,500 | | | 1,424,535 | |
| CME Group Inc. | | | 20,500 | | | 3,232,440 | |
| Northern Trust Corp. | | | 13,500 | | | 1,441,125 | |
| PNC Financial Services Group Inc./The | | | 11,000 | | | 1,601,710 | |
| Travelers Cos. Inc./The | | | 16,500 | | | 2,171,400 | |
| US Bancorp | | | 60,500 | | | 3,052,225 | |
| Wells Fargo & Co. | | | 49,500 | | | 2,572,020 | |
| | | | | | | |
| | | | | | | 17,105,855 | |
| Health Care - 8.6% | | | | | | | |
| Amgen Inc. | | | 10,500 | | | 1,832,040 | |
| Johnson & Johnson | | | 23,500 | | | 2,972,515 | |
| Medtronic PLC | | | 28,100 | | | 2,251,653 | |
| Merck & Co. Inc. | | | 31,000 | | | 1,824,970 | |
| Novartis AG, ADR | | | 28,800 | | | 2,208,672 | |
| Pfizer Inc. | | | 67,000 | | | 2,452,870 | |
| | | | | | | |
| | | | | | | 13,542,720 | |
| Industrials - 8.8% | | | | | | | |
| 3M Co. | | | 5,500 | | | 1,069,145 | |
| Caterpillar Inc. | | | 7,000 | | | 1,010,520 | |
| Emerson Electric Co. | | | 31,500 | | | 2,091,915 | |
| Fastenal Co. | | | 49,500 | | | 2,474,505 | |
| Union Pacific Corp. | | | 12,500 | | | 1,670,375 | |
| United Parcel Service Inc., Class B | | | 24,700 | | | 2,803,450 | |
| United Technologies Corp. | | | 22,500 | | | 2,703,375 | |
| | | | | | | |
| | | | | | | 13,823,285 | |
| Information Technology - 8.1% | | | | | | | |
| Accenture PLC, Class A | | | 8,500 | | | 1,285,200 | |
| Analog Devices Inc. | | | 15,000 | | | 1,310,250 | |
| Automatic Data Processing Inc. | | | 10,000 | | | 1,180,800 | |
| Cisco Systems Inc. | | | 84,000 | | | 3,720,360 | |
| Microsoft Corp. | | | 34,000 | | | 3,179,680 | |
| TE Connectivity Ltd. | | | 10,200 | | | 935,850 | |
| Texas Instruments Inc. | | | 10,500 | | | 1,065,015 | |
| | | | | | | |
| | | | | | | 12,677,155 | |
| Materials - 3.9% | | | | | | | |
| Nucor Corp. | | | 41,500 | | | 2,557,230 | |
| Praxair Inc. | | | 23,500 | | | 3,584,220 | |
| | | | | | | |
| | | | | | | 6,141,450 | |
| Telecommunication Service - 1.5% | | | | | | | |
| Verizon Communications Inc. | | | 49,000 | | | 2,418,150 | |
| | | | | | | |
| | | | | | | | |
| Utilities - 2.3% | | | | | | | |
| Dominion Energy Inc. | | | 24,000 | | | 1,597,440 | |
| NextEra Energy Inc. | | | 12,500 | | | 2,048,875 | |
| | | | | | | |
| | | | | | | 3,646,315 | |
| | | | | | | |
Total Common Stocks | | | | | | | |
(Cost $74,382,154) | | | | | | 99,218,458 | |
| | | | Par Value | | | | |
| ASSET BACKED SECURITIES - 1.6% | | | | | | | |
| American Express Credit Account Master | | | | | | | |
| Trust, Series 2017-1, Class B, 2.1%, 9/15/22 | | $ | 250,000 | | | 246,395 | |
| CarMax Auto Owner Trust, Series 2017-1, Class A2, 1.54%, 2/18/20 | | | 159,267 | | | 158,920 | |
| Chase Issuance Trust, Series 2017-A1, Class A, (1M LIBOR + 0.300%) (A), 2.197%, 1/18/22 | | | 200,000 | | | 200,413 | |
| Chesapeake Funding II LLC, Series 2017-4A, Class A1 (B), 2.12%, 11/15/29 | | | 400,000 | | | 395,081 | |
| Chesapeake Funding II LLC, Series 2018-1A, Class A1 (B), 3.04%, 4/15/30 | | | 250,000 | | | 249,404 | |
| Enterprise Fleet Financing LLC, Series 2015-2, Class A3 (B), 2.09%, 2/22/21 | | | 400,000 | | | 398,659 | |
| Ford Credit Floorplan Master Owner Trust, Series 2015-4, Class A1, 1.77%, 8/15/20 | | | 250,000 | | | 249,493 | |
| Santander Drive Auto Receivables Trust, Series 2013-5, Class D, 2.73%, 10/15/19 | | | 76,474 | | | 76,484 | |
| Santander Drive Auto Receivables Trust, Series 2014-5, Class C, 2.46%, 6/15/20 | | | 134,041 | | | 133,993 | |
| Synchrony Credit Card Master Note Trust, Series 2017-1, Class B, 2.19%, 6/15/23 | | | 450,000 | | | 442,001 | |
| | | | | | | |
Total Asset Backed Securities | | | | | | | |
(Cost $2,559,792) | | | | | | 2,550,843 | |
| See accompanying Notes to Financial Statements. |
| | |
| |
| 22 | |
| Madison Funds | April 30, 2018 |
| |
| |
| Madison Diversified Income Fund Portfolio of Investments (unaudited) - continued |
| | | | Par Value | | Value (Note 2) | |
| | | | | | | |
| COLLATERALIZED MORTGAGE OBLIGATIONS - 1.1% | | | | | | | |
| Fannie Mae REMICS, Series 2011-31, Class DB, 3.5%, 4/25/31 | | $ | 200,000 | | $ | 201,517 | |
| Fannie Mae REMICS, Series 2011-36, Class QB, 4%, 5/25/31 | | | 250,000 | | | 256,907 | |
| Fannie Mae REMICS, Series 2005-79, Class LT, 5.5%, 9/25/35 | | | 93,554 | | | 101,061 | |
| Fannie Mae REMICS, Series 2011-101, Class NC, 2.5%, 4/25/40 | | | 263,380 | | | 260,104 | |
| Fannie Mae REMICS, Series 2016-21, Class BA, 3%, 3/25/42 | | | 277,399 | | | 272,494 | |
| Freddie Mac REMICS, Series 3825, Class CB, 3.5%, 3/15/26 | | | 406,565 | | | 413,729 | |
| Freddie Mac REMICS, Series 3187, Class Z, 5%, 7/15/36 | | | 238,255 | | | 254,950 | |
| | | | | | | |
| | | | | | | | |
Total Collateralized Mortgage | | | | | | | |
Obligations (Cost $1,835,494) | | | | | | 1,760,762 | |
| | | | | | | | |
| COMMERCIAL MORTGAGE-BACKED SECURITIES - 0.7% | | | | | | | |
| Fannie Mae-Aces, Series 2016-M2, Class X2, IO (A) (C), 1.188%, 1/25/23 | | | 3,797,552 | | | 149,445 | |
| Fannie Mae-Aces, Series 2013-M12, Class APT (A) (C), 2.467%, 3/25/23 | | | 359,145 | | | 347,378 | |
| FHLMC Multifamily Structured Pass Through Certificates, Series K066, Class A2, 3.117%, 6/25/27 | | | 225,000 | | | 219,765 | |
| FREMF Mortgage Trust, Series 2012-K708, Class B (A) (B) (C), 3.882%, 2/25/45 | | | 300,000 | | | 301,540 | |
| | | | | | | |
| | | | | | | | |
Total Commercial Mortgage-Backed | | | | | | | |
Securities (Cost $1,061,412) | | | | | | 1,018,128 | |
| | | | | | | | |
| CORPORATE NOTES AND BONDS - 13.7% | | | | | | | |
| Consumer Discretionary - 3.0% | | | | | | | |
| Advance Auto Parts Inc., 4.5%, 12/1/23 | | | 500,000 | | | 511,965 | |
| Amazon.com Inc. (B), 2.8%, 8/22/24 | | | 125,000 | | | 120,307 | |
| Booking Holdings Inc., 3.6%, 6/1/26 | | | 250,000 | | | 242,343 | |
| CCO Holdings LLC / CCO Holdings Capital Corp. (B), 5.875%, 5/1/27 | | | 200,000 | | | 195,500 | |
| Charter Communications Operating LLC / Charter Communications Operating Capital Corp., 4.464%, 7/23/22 | | | 200,000 | | | 203,906 | |
| Discovery Communications LLC, 5%, 9/20/37 | | | 250,000 | | | 244,899 | |
| DISH DBS Corp., 6.75%, 6/1/21 | | | 200,000 | | | 199,000 | |
| ERAC USA Finance LLC (B), 6.7%, 6/1/34 | | | 150,000 | | | 183,011 | |
| Ford Motor Credit Co. LLC, MTN, 2.943%, 1/8/19 | | | 300,000 | | | 300,164 | |
| GameStop Corp. (B) (D), 6.75%, 3/15/21 | | | 100,000 | | | 101,250 | |
| General Motors Financial Co. Inc., 3.2%, 7/6/21 | | | 300,000 | | | 296,287 | |
| GLP Capital L.P. / GLP Financing II Inc., 4.875%, 11/1/20 | | | 125,000 | | | 127,775 | |
| Lennar Corp., 4.75%, 4/1/21 | | | 150,000 | | | 152,023 | |
| Marriott International Inc., 3.125%, 6/15/26 | | | 250,000 | | | 232,729 | |
| McDonald’s Corp., MTN, 4.875%, 12/9/45 | | | 300,000 | | | 317,641 | |
| Newell Brands Inc., 5.5%, 4/1/46 | | | 450,000 | | | 466,578 | |
| Omnicom Group Inc., 3.6%, 4/15/26 | | | 350,000 | | | 335,109 | |
| Time Warner Inc., 4.75%, 3/29/21 | | | 400,000 | | | 415,840 | |
| Walgreens Boots Alliance Inc., 4.5%, 11/18/34 | | | 155,000 | | | 150,842 | |
| | | | | | | |
| | | | | | | 4,797,169 | |
| Consumer Staples - 0.4% | | | | | | | |
| Anheuser-Busch InBev Finance Inc., 4.9%, | | | | | | | |
| 2/1/46 | | | 250,000 | | | 259,364 | |
| Bunge Ltd. Finance Corp., 3.25%, 8/15/26 | | | 250,000 | | | 229,306 | |
| Tyson Foods Inc., 3.55%, 6/2/27 | | | 75,000 | | | 71,239 | |
| | | | | | | |
| | | | | | | 559,909 | |
| Energy - 2.2% | | | | | | | |
| Antero Resources Corp., 5.625%, 6/1/23 | | | 150,000 | | | 153,188 | |
| BP Capital Markets PLC (E), 3.119%, 5/4/26 | | | 200,000 | | | 191,356 | |
| ConocoPhillips Co., 4.15%, 11/15/34 | | | 500,000 | | | 505,970 | |
| Enterprise Products Operating LLC, 5.2%, 9/1/20 | | | 450,000 | | | 469,944 | |
| Enterprise Products Operating LLC, 3.75%, 2/15/25 | | | 300,000 | | | 297,435 | |
| Exxon Mobil Corp., 4.114%, 3/1/46 | | | 225,000 | | | 230,267 | |
| Jonah Energy LLC / Jonah Energy Finance Corp. (B) (D), 7.25%, 10/15/25 | | | 150,000 | | | 120,000 | |
| Marathon Oil Corp., 2.7%, 6/1/20 | | | 300,000 | | | 295,575 | |
| Phillips 66, 4.65%, 11/15/34 | | | 500,000 | | | 517,551 | |
| Schlumberger Holdings Corp. (B), 4%, 12/21/25 | | | 300,000 | | | 300,274 | |
| Valero Energy Corp., 6.625%, 6/15/37 | | | 250,000 | | | 312,183 | |
| Valero Energy Partners L.P., 4.5%, 3/15/28 | | | 150,000 | | | 148,174 | |
| | | | | | | |
| | | | | | | 3,541,917 | |
| Financials - 3.6% | | | | | | | |
| Air Lease Corp., 3.75%, 2/1/22 | | | 300,000 | | | 300,399 | |
| Air Lease Corp., 3.625%, 4/1/27 | | | 200,000 | | | 186,647 | |
| American Express Co., 2.5%, 8/1/22 | | | 400,000 | | | 383,775 | |
| Bank of America Corp., MTN, (3M LIBOR + 1.090%) (A), 3.093%, 10/1/25 | | | 400,000 | | | 381,038 | |
| Bank of Montreal, MTN (E), 1.9%, 8/27/21 | | | 250,000 | | | 239,273 | |
| Bank of New York Mellon Corp./The, MTN, 2.2%, 8/16/23 | | | 400,000 | | | 375,325 | |
| BB&T Corp., MTN, 2.85%, 10/26/24 | | | 200,000 | | | 190,632 | |
| Berkshire Hathaway Inc., 3.125%, 3/15/26 | | | 100,000 | | | 96,347 | |
| Capital One Financial Corp., 2.45%, 4/24/19 | | | 200,000 | | | 199,406 | |
| Capital One Financial Corp., 3.3%, | | | | | | | |
| 10/30/24 | | | 200,000 | | | 190,485 | |
| Cboe Global Markets Inc., 3.65%, 1/12/27 | | | 175,000 | | | 168,833 | |
| Goldman Sachs Group Inc./The(3M LIBOR + 1.201%) (A), 3.272%, 9/29/25 | | | 350,000 | | | 332,869 | |
| Huntington National Bank/The, 2.2%, 4/1/19 | | | 400,000 | | | 398,331 | |
| Intercontinental Exchange Inc., 2.35%, 9/15/22 | | | 200,000 | | | 190,772 | |
| JPMorgan Chase & Co., 2.972%, 1/15/23 | | | 300,000 | | | 292,242 | |
| JPMorgan Chase & Co., 2.95%, 10/1/26 | | | 350,000 | | | 323,937 | |
| Morgan Stanley, MTN, 3.875%, 1/27/26 | | | 100,000 | | | 98,559 | |
| Morgan Stanley, 4.3%, 1/27/45 | | | 250,000 | | | 241,970 | |
| Nasdaq Inc., 3.85%, 6/30/26 | | | 50,000 | | | 48,554 | |
| New York Life Global Funding (B), 1.95%, 2/11/20 | | | 300,000 | | | 294,717 | |
| Regions Financial Corp., 3.2%, 2/8/21 | | | 250,000 | | | 248,730 | |
| Regions Financial Corp., 2.75%, 8/14/22 | | | 250,000 | | | 241,053 | |
| Synchrony Financial, 3.7%, 8/4/26 | | | 250,000 | | | 231,014 | |
| | | | | | | |
| | | | | | | 5,654,908 | |
| Health Care - 1.3% | | | | | | | |
| AbbVie Inc., 4.45%, 5/14/46 | | | 200,000 | | | 190,481 | |
| Allergan Funding SCS (E), 4.75%, 3/15/45 | | | 150,000 | | | 141,752 | |
| CVS Health Corp., 5.125%, 7/20/45 | | | 250,000 | | | 259,667 | |
| HCA Inc., 3.75%, 3/15/19 | | | 150,000 | | | 150,375 | |
| Humana Inc., 2.5%, 12/15/20 | | | 300,000 | | | 294,685 | |
| Shire Acquisitions Investments Ireland DAC (E), 1.9%, 9/23/19 | | | 350,000 | | | 343,819 | |
| UnitedHealth Group Inc., 2.875%, 3/15/23 | | | 400,000 | | | 390,371 | |
| Zoetis Inc., 3%, 9/12/27 | | | 350,000 | | | 323,003 | |
| | | | | | | |
| | | | | | | 2,094,153 | |
| Industrials - 0.4% | | | | | | | |
| Masco Corp., 4.375%, 4/1/26 | | | 150,000 | | | 150,937 | |
| Norfolk Southern Corp., 5.59%, 5/17/25 | | | 239,000 | | | 263,884 | |
| United Rentals North America Inc., 4.625%, 7/15/23 | | | 200,000 | | | 203,000 | |
| | | | | | | |
| | | | | | | 617,821 | |
| Information Technology - 1.8% | | | | | | | |
| Analog Devices Inc., 5.3%, 12/15/45 | | | 225,000 | | | 246,206 | |
| Autodesk Inc., 4.375%, 6/15/25 | | | 250,000 | | | 253,655 | |
| Broadridge Financial Solutions Inc., 3.95%, 9/1/20 | | | 450,000 | | | 456,805 | |
| Citrix Systems Inc., 4.5%, 12/1/27 | | | 55,000 | | | 53,368 | |
| Dell International LLC / EMC Corp. (B), 8.35%, 7/15/46 | | | 75,000 | | | 92,347 | |
| Fidelity National Information Services Inc., 3%, 8/15/26 | | | 175,000 | | | 160,639 | |
| Fiserv Inc., 2.7%, 6/1/20 | | | 250,000 | | | 247,875 | |
| Hewlett Packard Enterprise Co., 6.35%, 10/15/45 | | | 175,000 | | | 179,809 | |
| Intel Corp. (B), 3.734%, 12/8/47 | | | 272,000 | | | 254,667 | |
| International Business Machines Corp., 1.875%, 8/1/22 | | | 400,000 | | | 377,077 | |
| Oracle Corp., 4%, 7/15/46 | | | 325,000 | | | 314,322 | |
| Thomson Reuters Corp. (E), 4.3%, 11/23/23 | | | 225,000 | | | 227,880 | |
| | | | | | | |
| | | | | | | 2,864,650 | |
| Real Estate - 0.5% | | | | | | | |
| Brixmor Operating Partnership L.P., 3.65%, | | | | | | | |
| 6/15/24 | | | 250,000 | | | 240,907 | |
| Iron Mountain Inc. (B), 4.875%, 9/15/27 | | | 100,000 | | | 94,125 | |
| Store Capital Corp., 4.5%, 3/15/28 | | | 200,000 | | | 196,050 | |
| Welltower Inc., 4.5%, 1/15/24 | | | 200,000 | | | 204,969 | |
| | | | | | | |
| | | | | | | 736,051 | |
| Telecommunication Services - 0.5% | | | | | | | |
| AT&T Inc., 4.75%, 5/15/46 | | | 200,000 | | | 186,270 | |
| AT&T Inc., 5.15%, 2/14/50 | | | 150,000 | | | 151,976 | |
| Verizon Communications Inc., 5.15%, 9/15/23 | | | 400,000 | | | 430,122 | |
| | | | | | | |
| | | | | | | 768,368 | |
| | | | | | | |
Total Corporate Notes and Bonds | | | | | | | |
(Cost $21,777,744) | | | | | | 21,634,946 | |
| LONG TERM MUNICIPAL BONDS - 2.2% | | | | | | | |
| County of Pasco FL Water & Sewer | | | | | | | |
| Revenue, Series B, 6.76%, 10/1/39 | | | 500,000 | | | 527,065 | |
| Los Angeles Department of Water & Power Revenue, 6.166%, 7/1/40 | | | 500,000 | | | 534,935 | |
| Metropolitan Transportation Authority Revenue, 6.548%, 11/15/31 | | | 325,000 | | | 402,590 | |
| New York City Transitional Finance | | | | | | | |
| Authority Future Tax Secured Revenue, 6.267%, 8/1/39 | | | 500,000 | | | 518,180 | |
| Northside Independent School District, | | | | | | | |
| General Obligation, Series B, (PSF-GTD), 5.741%, 8/15/35 | | | 325,000 | | | 337,909 | |
| Rancho Water District Financing Authority | | | | | | | |
| Revenue, (Prerefunded 8/1/20 @ $100), 6.337%, 8/1/40 | | | 5,000 | | | 5,380 | |
| Rancho Water District Financing Authority Revenue, 6.337%, 8/1/40 | | | 345,000 | | | 369,868 | |
| University of Massachusetts Building Authority Revenue, 6.573%, 5/1/39 | | | 500,000 | | | 518,720 | |
| Washington County School District #1 | | | | | | | |
| West Union, General Obligation, 4.355%, 6/30/34 | | | 200,000 | | | 211,014 | |
| | | | | | | |
Total Long Term Municipal Bonds | | | | | | | |
(Cost $3,444,943) | | | | | | 3,425,661 | |
| See accompanying Notes to Financial Statements. |
| | |
| |
| | 23 |
| Madison Funds | April 30, 2018 |
| |
| |
| Madison Diversified Income Fund Portfolio of Investments (unaudited) - continued |
| | | | Par Value | | Value (Note 2) | |
| | | | | | | |
| MORTGAGE BACKED SECURITIES - 7.2% | | | | | | | |
| | | | | | | | |
| Fannie Mae - 4.5% | | | | | | | |
| 3%, 9/1/30 Pool # 890696 | | $ | 219,814 | | $ | 218,587 | |
| 3%, 12/1/30 Pool # AL8924 | | | 352,656 | | | 350,906 | |
| 7%, 11/1/31 Pool # 607515 | | | 7,072 | | | 7,744 | |
| 3.5%, 12/1/31 Pool # MA0919 | | | 544,344 | | | 551,209 | |
| 3%, 2/1/32 Pool # AL9867 | | | 216,287 | | | 214,691 | |
| 7%, 5/1/32 Pool # 644591 | | | 874 | | | 894 | |
| 3.5%, 8/1/32 Pool # MA3098 | | | 226,169 | | | 229,091 | |
| 3.5%, 9/1/32 Pool # MA3126 | | | 185,438 | | | 187,834 | |
| 5.5%, 10/1/33 Pool # 254904 | | | 51,251 | | | 56,112 | |
| 7%, 7/1/34 Pool # 792636 | | | 4,814 | | | 4,941 | |
| 4%, 2/1/35 Pool # MA2177 | | | 354,266 | | | 366,245 | |
| 5%, 8/1/35 Pool # 829670 | | | 45,855 | | | 49,213 | |
| 5%, 9/1/35 Pool # 820347 | | | 62,383 | | | 67,560 | |
| 5%, 9/1/35 Pool # 835699 | | | 49,830 | | | 53,914 | |
| 3%, 12/1/35 Pool # AS6267 | | | 293,348 | | | 289,338 | |
| 5%, 12/1/35 Pool # 850561 | | | 17,890 | | | 19,217 | |
| 5.5%, 9/1/36 Pool # 831820 | | | 91,612 | | | 102,056 | |
| 6%, 9/1/36 Pool # 831741 | | | 74,334 | | | 82,240 | |
| 5.5%, 10/1/36 Pool # 901723 | | | 35,372 | | | 38,573 | |
| 5.5%, 12/1/36 Pool # 903059 | | | 73,200 | | | 79,724 | |
| 4.5%, 7/1/41 Pool # AB3274 | | | 183,615 | | | 193,246 | |
| 5.5%, 7/1/41 Pool # AL6588 | | | 167,542 | | | 183,609 | |
| 3.5%, 6/1/42 Pool # AO4134 | | | 282,016 | | | 282,096 | |
| 4%, 6/1/42 Pool # MA1087 | | | 198,187 | | | 203,385 | |
| 3.5%, 8/1/42 Pool # AO8100 | | | 181,997 | | | 181,975 | |
| 3.5%, 8/1/42 Pool # AP2133 | | | 213,124 | | | 213,141 | |
| 4%, 10/1/42 Pool # AP7363 | | | 372,804 | | | 382,584 | |
| 3%, 2/1/43 Pool # AB8486 | | | 318,843 | | | 310,291 | |
| 3%, 2/1/43 Pool # AB8563 | | | 194,304 | | | 189,051 | |
| 3%, 2/1/43 Pool # AL3072 | | | 303,727 | | | 295,792 | |
| 3%, 3/1/43 Pool # AB8818 | | | 314,067 | | | 305,611 | |
| 3.5%, 3/1/43 Pool # AT0310 | | | 165,871 | | | 165,885 | |
| 4%, 1/1/45 Pool # AS4257 | | | 139,666 | | | 142,949 | |
| 4%, 1/1/45 Pool # MA2145 | | | 374,826 | | | 382,924 | |
| 4.5%, 2/1/45 Pool # MA2193 | | | 265,804 | | | 277,840 | |
| 3.5%, 12/1/45 Pool # AS6309 | | | 172,725 | | | 171,705 | |
| 3%, 1/1/47 Pool # BE0108 | | | 232,846 | | | 225,456 | |
| | | | | | | |
| | | | | | | 7,077,629 | |
| Freddie Mac - 2.7% | | | | | | | |
| 4.5%, 2/1/25 Pool # J11722 | | | 36,949 | | | 38,284 | |
| 4.5%, 5/1/25 Pool # J12247 | | | 31,794 | | | 32,947 | |
| 8%, 6/1/30 Pool # C01005 | | | 1,179 | | | 1,354 | |
| 6.5%, 1/1/32 Pool # C62333 | | | 36,365 | | | 40,963 | |
| 5%, 10/1/39 Pool # G60465 | | | 426,619 | | | 457,194 | |
| 3.5%, 11/1/40 Pool # G06168 | | | 300,145 | | | 300,505 | |
| 4.5%, 9/1/41 Pool # Q03516 | | | 154,559 | | | 162,608 | |
| 4%, 10/1/41 Pool # Q04092 | | | 220,196 | | | 226,333 | |
| 3%, 8/1/42 Pool # G08502 | | | 268,692 | | | 261,619 | |
| 3%, 9/1/42 Pool # C04233 | | | 276,198 | | | 268,798 | |
| 3%, 4/1/43 Pool # V80025 | | | 318,837 | | | 310,110 | |
| 3%, 4/1/43 Pool # V80026 | | | 317,758 | | | 309,023 | |
| 3.5%, 8/1/44 Pool # Q27927 | | | 494,358 | | | 494,339 | |
| 3%, 7/1/45 Pool # G08653 | | | 385,022 | | | 372,467 | |
| 3.5%, 8/1/45 Pool # Q35614 | | | 375,335 | | | 374,737 | |
| 3%, 10/1/46 Pool # G60722 | | | 289,061 | | | 279,242 | |
| 4%, 3/1/47 Pool # Q46801 | | | 354,479 | | | 362,740 | |
| | | | | | | |
| | | | | | | 4,293,263 | |
| Ginnie Mae - 0.0% | | | | | | | |
| 6.5%, 2/20/29 Pool # 2714 | | | 13,752 | | | 15,418 | |
| 6.5%, 4/20/31 Pool # 3068 | | | 8,038 | | | 9,079 | |
| | | | | | | |
| | | | | | | 24,497 | |
| | �� | | | | | |
Total Mortgage Backed Securities | | | | | | | |
(Cost $11,741,785) | | | | | | 11,395,389 | |
| | | | | | | | |
| U.S. GOVERNMENT AND AGENCY OBLIGATIONS - 7.8% | | | | | | | |
| | | | | | | | |
| Federal Home Loan Bank - 0.3% | | | | | | | |
| 1.750%, 12/21/23 (F) | | | 400,000 | | | 394,543 | |
| | | | | | | |
| | | | | | | | |
| U.S. Treasury Bonds - 2.1% | | | | | | | |
| 6.625%, 2/15/27 | | | 860,000 | | | 1,107,788 | |
| 3.000%, 5/15/42 | | | 500,000 | | | 494,316 | |
| 2.500%, 2/15/45 | | | 350,000 | | | 312,238 | |
| 2.500%, 5/15/46 | | | 500,000 | | | 444,082 | |
| 2.250%, 8/15/46 | | | 500,000 | | | 420,449 | |
| 3.000%, 5/15/47 | | | 500,000 | | | 490,801 | |
| | | | | | | |
| | | | | | | 3,269,674 | |
| U.S. Treasury Notes - 5.4% | | | | | | | |
| 3.375%, 11/15/19 | | | 1,000,000 | | | 1,014,219 | |
| 2.000%, 7/31/20 | | | 1,500,000 | | | 1,482,246 | |
| 2.625%, 11/15/20 | | | 1,500,000 | | | 1,501,406 | |
| 1.750%, 5/15/22 | | | 2,500,000 | | | 2,406,738 | |
| 2.500%, 8/15/23 | | | 750,000 | | | 738,398 | |
| 2.125%, 3/31/24 | | | 1,000,000 | | | 960,430 | |
| 1.500%, 8/15/26 | | | 500,000 | | | 447,481 | |
| | | | | | | |
| | | | | | | 8,550,918 | |
| | | | | | | |
Total U.S. Government and Agency | | | | | | | |
Obligations (Cost $12,432,010) | | | | | | 12,215,135 | |
| | | | | | | | |
| SHORT-TERM INVESTMENTS - 2.4% | | | | | | | |
| State Street Institutional U.S. Government | | | | | | | |
| Money Market Fund, 1.63%, Premier Class | | | 3,774,556 | | | 3,774,556 | |
| | | | | | | |
| | | | | | | | |
Total Short-Term Investments | | | | | | | |
(Cost $3,774,556) | | | | | | 3,774,556 | |
| | | | | | | | |
| COLLATERAL FOR SECURITIES ON LOAN (G) - 0.1% | | | | | | | |
| State Street Navigator Securities Lending Government Money Market Portfolio, 1.69% | | | 222,950 | | | 222,950 | |
| | | | | | | |
| | | | | | | | |
Total Collateral for Securities on Loan | | | | | | | |
(Cost $222,950) | | | | | | 222,950 | |
| | | | | | | |
| | | | | | | | |
| TOTAL INVESTMENTS - 99.8% | | | | | | | |
| (Cost $133,232,840**) | | | | | | 157,216,828 | |
| | | | | | | | |
| NET OTHER ASSETS AND LIABILITIES - 0.2% | | | | | | 388,880 | |
| | | | | | | |
| TOTAL NET ASSETS - 100.0% | | | | | $ | 157,605,708 | |
| | | | | | | |
| ** | | Aggregate cost for Federal tax purposes was $133,410,925. |
| (A) | | Floating rate or variable rate note. Rate shown is as of April 30, 2018. |
| (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) | | Coupon rate may change based on changes of the underlying collateral or prepayments of principal. The coupon rate shown represents the rate at period end. |
| (D) | | A portion of securities on loan with an aggregate value of $218,096; cash collateral (included in liabilities) of $222,950 was received with which the Fund invested in the State Street Navigator Securities Lending Government Money Market Portfolio. |
| (E) | | Notes and bonds, issued by foreign entities, denominated in U.S. dollars. The aggregate of these securities is 0.7% of total net assets. |
| (F) | | Stepped rate security. Rate shown is as of April 30, 2018. |
| (G) | | Represents investments of cash collateral received in connection with securities lending. |
| ADR | | American Depositary Receipt. |
| LIBOR | | London Interbank Offered Rate |
| MTN | | Medium Term Note. |
| PLC | | Public Limited Company. |
| PSF- | | |
| GTD | | Permanent School Fund Guaranteed. |
| See accompanying Notes to Financial Statements. |
| | |
| |
| 24 | |
| Madison Funds | April 30, 2018 |
| |
| |
| Madison Covered Call & Equity Income Fund Portfolio of Investments |
| | | | Shares | | | Value (Note 2) | |
| | | | | | | | |
| COMMON STOCKS - 88.5% | | | | | | | |
| | | | | | | | |
| Consumer Discretionary - 7.8% | | | | | | | |
| Discovery Inc., Class A* | | | 33,800 | | $ | 799,370 | |
| Discovery Inc., Class C* | | | 36,000 | | | 799,920 | |
| General Motors Co. (A) | | | 84,500 | | | 3,104,530 | |
| Nordstrom Inc. (A) | | | 52,300 | | | 2,644,288 | |
| Whirlpool Corp. (A) | | | 13,300 | | | 2,060,835 | |
| | | | | | | |
| | | | | | | 9,408,943 | |
| Consumer Staples - 1.9% | | | | | | | |
| JM Smucker Co./The | | | 20,000 | | | 2,281,600 | |
| | | | | | | |
| | | | | | | | |
| Energy - 11.1% | | | | | | | |
| Apache Corp. (A) | | | 77,700 | | | 3,181,815 | |
| Baker Hughes, a GE Co. (A) | | | 96,300 | | | 3,477,393 | |
| Canadian Natural Resources Ltd. (A) | | | 38,000 | | | 1,371,040 | |
| National Oilwell Varco Inc. (A) | | | 44,200 | | | 1,709,214 | |
| Occidental Petroleum Corp. (A) | | | 15,900 | | | 1,228,434 | |
| Range Resources Corp. (A) | | | 169,200 | | | 2,343,420 | |
| | | | | | | |
| | | | | | | 13,311,316 | |
| Financials - 11.4% | | | | | | | |
| Bank of America Corp. (A) | | | 97,800 | | | 2,926,176 | |
| Citigroup Inc. (A) | | | 42,100 | | | 2,874,167 | |
| JPMorgan Chase & Co. (A) | | | 23,900 | | | 2,599,842 | |
| Northern Trust Corp. (A) | | | 25,000 | | | 2,668,750 | |
| Regions Financial Corp. (A) | | | 139,300 | | | 2,604,910 | |
| | | | | | | |
| | | | | | | 13,673,845 | |
| Health Care - 11.9% | | | | | | | |
| Baxter International Inc. (A) | | | 66,000 | | | 4,587,000 | |
| Cerner Corp.* (A) | | | 44,000 | | | 2,563,000 | |
| CVS Health Corp. (A) | | | 35,200 | | | 2,458,016 | |
| Gilead Sciences Inc. (A) | | | 41,200 | | | 2,975,876 | |
| McKesson Corp. (A) | | | 10,500 | | | 1,640,205 | |
| | | | | | | |
| | | | | | | 14,224,097 | |
| Industrials - 6.9% | | | | | | | |
| Delta Air Lines Inc. (A) | | | 47,000 | | | 2,454,340 | |
| Fastenal Co. | | | 28,800 | | | 1,439,712 | |
| FedEx Corp. (A) | | | 12,500 | | | 3,090,000 | |
| Textron Inc. (A) | | | 20,700 | | | 1,286,298 | |
| | | | | | | |
| | | | | | | 8,270,350 | |
| Information Technology - 16.1% | | | | | | | |
| Alphabet Inc., Class C* (A) | | | 3,800 | | | 3,865,854 | |
| Analog Devices Inc. (A) | | | 29,600 | | | 2,585,560 | |
| Ciena Corp.* (A) | | | 137,600 | | | 3,543,200 | |
| Microsoft Corp. (A) | | | 43,100 | | | 4,030,712 | |
| QUALCOMM Inc. (A) | | | 58,800 | | | 2,999,388 | |
| Xilinx Inc. (A) | | | 36,200 | | | 2,325,488 | |
| | | | | | | |
| | | | | | | 19,350,202 | |
| Materials - 10.2% | | | | | | | |
| Alcoa Corp.* (A) | | | 36,300 | | | 1,858,560 | |
| DowDuPont Inc. (A) | | | 61,500 | | | 3,889,260 | |
| Freeport-McMoRan Inc. (A) | | | 99,900 | | | 1,519,479 | |
| Newmont Mining Corp. (A) | | | 68,700 | | | 2,699,223 | |
| Steel Dynamics Inc. (A) | | | 50,800 | | | 2,276,348 | |
| | | | | | | |
| | | | | | | 12,242,870 | |
| Real Estate - 3.2% | | | | | | | |
| Weyerhaeuser Co. (A) | | | 104,300 | | | 3,836,154 | |
| | | | | | | |
| | | | | | | | |
| Telecommunication Service - 5.0% | | | | | | | |
| T-Mobile U.S. Inc.* (A) | | | 99,800 | | | 6,038,898 | |
| | | | | | | |
| | | | | | | | |
| Utilities - 3.0% | | | | | | | |
| AES Corp. (A) | | | 296,000 | | | 3,623,040 | |
| | | | | | | |
Total Common Stocks | | | | | | | |
(Cost $116,681,578) | | | | | | 106,261,315 | |
| | | | | | | | |
| EXCHANGE TRADED FUNDS - 6.9% | | | | | | | |
| PowerShares DB Gold Fund* | | | 100,000 | | | 4,156,000 | |
| SPDR S&P Oil & Gas Exploration & Production ETF (A) | | | 45,500 | | | 1,791,790 | |
| VanEck Vectors Gold Miners ETF | | | 103,600 | | | 2,308,208 | |
| | | | | | | |
| | | | | | | | |
Total Exchange Traded Funds | | | | | | | |
(Cost $8,066,123) | | | | | | 8,255,998 | |
| | | | | | | | |
| SHORT-TERM INVESTMENTS - 5.7% | | | | | | | |
| State Street Institutional U.S. Government | | | | | | | |
| Money Market Fund, 1.63%, Premier Class | | | 6,799,415 | | | 6,799,415 | |
| | | | | | | |
| | | | | | | | |
Total Short-Term Investments | | | | | | | |
(Cost $6,799,415) | | | | | | 6,799,415 | |
| | | | | | | |
| | | | | | | | |
| TOTAL INVESTMENTS - 101.1% | | | | | | | |
| (Cost $131,547,116**) | | | | | | 121,316,728 | |
| TOTAL CALL OPTIONS WRITTEN - (1.8%) | | | | | | (2,178,521 | ) |
| | | | | | | | |
| NET OTHER ASSETS AND LIABILITIES - 0.7% | | | | | | 881,717 | |
| | | | | | | |
| TOTAL NET ASSETS - 100.0% | | | | | $ | 120,019,924 | |
| | | | | | | |
| * | | Non-income producing. |
| ** | | Aggregate cost for Federal tax purposes was $131,296,039. |
| (A) | | All or a portion of these securities’ positions represent covers (directly or through conversion rights) for outstanding options written. |
| ETF | | Exchange Traded Fund. |
| PLC | | Public Limited Company. |
Written Option Contracts Outstanding at April 30, 2018
| | | | | | | | | Number of | | Notional | | | | | | Premiums | | Unrealized Appreciation |
| Description | | Exercise Price | | Expiration Date | | Contracts | | Amount | | Market Value | | (Received) | | (Depreciation) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Call Options Written | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| AES Corp. | | $ | 12.00 | | | 08/17/2018 | | | (1,480 | ) | | $ | (148,000 | ) | | $ | (103,600 | ) | | $ | (42,863 | ) | | $ | (60,737 | ) |
| Alcoa Corp. | | | 47.00 | | | 05/18/2018 | | | (71 | ) | | | (7,100 | ) | | | (34,080 | ) | | | (14,836 | ) | | | (19,244 | ) |
| Alcoa Corp. | | | 60.00 | | | 06/15/2018 | | | (214 | ) | | | (21,400 | ) | | | (10,700 | ) | | | (38,584 | ) | | | 27,884 | |
| Alcoa Corp. | | | 55.00 | | | 07/20/2018 | | | (78 | ) | | | (7,800 | ) | | | (18,915 | ) | | | (17,558 | ) | | | (1,357 | ) |
| Alphabet Inc., Class C | | | 1,130.00 | | | 05/18/2018 | | | (13 | ) | | | (1,300 | ) | | | (617 | ) | | | (43,811 | ) | | | 43,194 | |
| Alphabet Inc., Class C | | | 1,130.00 | | | 06/15/2018 | | | (13 | ) | | | (1,300 | ) | | | (3,705 | ) | | | (42,042 | ) | | | 38,337 | |
| Analog Devices Inc. | | | 92.50 | | | 05/18/2018 | | | (54 | ) | | | (5,400 | ) | | | (1,485 | ) | | | (7,234 | ) | | | 5,749 | |
| Analog Devices Inc. | | | 95.00 | | | 05/18/2018 | | | (90 | ) | | | (9,000 | ) | | | (675 | ) | | | (18,744 | ) | | | 18,069 | |
| Analog Devices Inc. | | | 95.00 | | | 06/15/2018 | | | (90 | ) | | | (9,000 | ) | | | (6,300 | ) | | | (26,906 | ) | | | 20,606 | |
| Apache Corp. | | | 40.00 | | | 05/18/2018 | | | (260 | ) | | | (26,000 | ) | | | (50,700 | ) | | | (31,044 | ) | | | (19,656 | ) |
| Apache Corp. | | | 45.00 | | | 07/20/2018 | | | (260 | ) | | | (26,000 | ) | | | (29,770 | ) | | | (32,157 | ) | | | 2,387 | |
| Baker Hughes, a GE Co. | | | 37.00 | | | 06/15/2018 | | | (300 | ) | | | (30,000 | ) | | | (36,750 | ) | | | (32,455 | ) | | | (4,295 | ) |
| Bank of America Corp. | | | 32.00 | | | 05/18/2018 | | | (138 | ) | | | (13,800 | ) | | | (483 | ) | | | (8,275 | ) | | | 7,792 | |
| Bank of America Corp. | | | 33.00 | | | 08/17/2018 | | | (840 | ) | | | (84,000 | ) | | | (34,020 | ) | | | (55,046 | ) | | | 21,026 | |
| Baxter International Inc. | | | 67.50 | | | 05/18/2018 | | | (250 | ) | | | (25,000 | ) | | | (63,125 | ) | | | (44,239 | ) | | | (18,886 | ) |
| Baxter International Inc. | | | 70.00 | | | 05/18/2018 | | | (185 | ) | | | (18,500 | ) | | | (16,650 | ) | | | (24,477 | ) | | | 7,827 | |
| Baxter International Inc. | | | 70.00 | | | 08/17/2018 | | | (225 | ) | | | (22,500 | ) | | | (63,338 | ) | | | (42,028 | ) | | | (21,310 | ) |
| Canadian Natural Resources Ltd. | | | 32.00 | | | 05/18/2018 | | | (190 | ) | | | (19,000 | ) | | | (80,750 | ) | | | (15,662 | ) | | | (65,088 | ) |
| Canadian Natural Resources Ltd. | | | 35.00 | | | 06/15/2018 | | | (190 | ) | | | (19,000 | ) | | | (38,475 | ) | | | (16,202 | ) | | | (22,273 | ) |
| Cerner Corp. | | | 62.50 | | | 06/15/2018 | | | (238 | ) | | | (23,800 | ) | | | (16,660 | ) | | | (26,953 | ) | | | 10,293 | |
| Ciena Corp. | | | 27.00 | | | 05/18/2018 | | | (350 | ) | | | (35,000 | ) | | | (8,400 | ) | | | (38,831 | ) | | | 30,431 | |
| Ciena Corp. | | | 28.00 | | | 07/20/2018 | | | (400 | ) | | | (40,000 | ) | | | (31,800 | ) | | | (50,360 | ) | | | 18,560 | |
| Ciena Corp. | | | 29.00 | | | 09/21/2018 | | | (300 | ) | | | (30,000 | ) | | | (31,800 | ) | | | (43,554 | ) | | | 11,754 | |
| See accompanying Notes to Financial Statements. |
| | |
| |
| | 25 |
| Madison Funds | April 30, 2018 |
| |
| |
| Madison Covered Call & Equity Income Fund Portfolio of Investments (unaudited) - continued |
Written Option Contracts Outstanding at April 30, 2018
| | | | | | | | | Number of | | Notional | | | | | | Premiums | | Unrealized Appreciation |
| Description | | Exercise Price | | Expiration Date | | Contracts | | Amount | | Market Value | | (Received) | | (Depreciation) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Call Options Written | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Citigroup Inc. | | $ | 72.50 | | | 06/15/2018 | | | (171 | ) | | $ | (17,100 | ) | | $ | (8,122 | ) | | $ | (29,707 | ) | | | $ 21,585 | |
| Citigroup Inc. | | | 77.50 | | | 06/15/2018 | | | (80 | ) | | | (8,000 | ) | | | (640 | ) | | | (13,587 | ) | | | 12,947 | |
| Citigroup Inc. | | | 75.00 | | | 09/21/2018 | | | (170 | ) | | | (17,000 | ) | | | (18,615 | ) | | | (34,717 | ) | | | 16,102 | |
| CVS Health Corp. | | | 65.00 | | | 05/18/2018 | | | (352 | ) | | | (35,200 | ) | | | (185,680 | ) | | | (44,968 | ) | | | (140,712 | ) |
| Delta Air Lines Inc. | | | 57.50 | | | 06/15/2018 | | | (98 | ) | | | (9,800 | ) | | | (2,597 | ) | | | (13,929 | ) | | | 11,332 | |
| Delta Air Lines Inc. | | | 57.50 | | | 07/20/2018 | | | (250 | ) | | | (25,000 | ) | | | (17,000 | ) | | | (43,625 | ) | | | 26,625 | |
| DowDuPont Inc. | | | 70.00 | | | 05/18/2018 | | | (400 | ) | | | (40,000 | ) | | | (4,600 | ) | | | (57,628 | ) | | | 53,028 | |
| FedEx Corp. | | | 250.00 | | | 05/18/2018 | | | (80 | ) | | | (8,000 | ) | | | (28,200 | ) | | | (30,224 | ) | | | 2,024 | |
| FedEx Corp. | | | 260.00 | | | 06/15/2018 | | | (45 | ) | | | (4,500 | ) | | | (11,902 | ) | | | (16,762 | ) | | | 4,860 | |
| Freeport-McMoRan Inc. | | | 21.00 | | | 08/17/2018 | | | (401 | ) | | | (40,100 | ) | | | (5,213 | ) | | | (43,897 | ) | | | 38,684 | |
| General Motors Co. | | | 37.00 | | | 05/18/2018 | | | (350 | ) | | | (35,000 | ) | | | (23,450 | ) | | | (34,867 | ) | | | 11,417 | |
| General Motors Co. | | | 38.00 | | | 05/18/2018 | | | (495 | ) | | | (49,500 | ) | | | (15,097 | ) | | | (36,308 | ) | | | 21,211 | |
| Gilead Sciences Inc. | | | 80.00 | | | 05/18/2018 | | | (212 | ) | | | (21,200 | ) | | | (4,876 | ) | | | (42,955 | ) | | | 38,079 | |
| Gilead Sciences Inc. | | | 77.50 | | | 06/15/2018 | | | (200 | ) | | | (20,000 | ) | | | (19,800 | ) | | | (30,940 | ) | | | 11,140 | |
| JPMorgan Chase & Co. | | | 115.00 | | | 05/18/2018 | | | (59 | ) | | | (5,900 | ) | | | (1,180 | ) | | | (16,723 | ) | | | 15,543 | |
| JPMorgan Chase & Co. | | | 120.00 | | | 06/15/2018 | | | (180 | ) | | | (18,000 | ) | | | (4,140 | ) | | | (48,693 | ) | | | 44,553 | |
| McKesson Corp. | | | 160.00 | | | 05/18/2018 | | | (41 | ) | | | (4,100 | ) | | | (7,072 | ) | | | (17,177 | ) | | | 10,105 | |
| McKesson Corp. | | | 150.00 | | | 08/17/2018 | | | (64 | ) | | | (6,400 | ) | | | (82,560 | ) | | | (37,053 | ) | | | (45,507 | ) |
| Microsoft Corp. | | | 95.00 | | | 05/18/2018 | | | (147 | ) | | | (14,700 | ) | | | (17,273 | ) | | | (45,429 | ) | | | 28,156 | |
| Microsoft Corp. | | | 97.50 | | | 06/15/2018 | | | (284 | ) | | | (28,400 | ) | | | (35,784 | ) | | | (60,287 | ) | | | 24,503 | |
| National Oilwell Varco Inc. | | | 36.00 | | | 05/18/2018 | | | (225 | ) | | | (22,500 | ) | | | (65,813 | ) | | | (30,192 | ) | | | (35,621 | ) |
| National Oilwell Varco Inc. | | | 38.00 | | | 05/18/2018 | | | (217 | ) | | | (21,700 | ) | | | (31,791 | ) | | | (27,652 | ) | | | (4,139 | ) |
| Newmont Mining Corp. | | | 40.00 | | | 06/15/2018 | | | (687 | ) | | | (68,700 | ) | | | (70,418 | ) | | | (68,503 | ) | | | (1,915 | ) |
| Nordstrom Inc. | | | 50.00 | | | 05/18/2018 | | | (523 | ) | | | (52,300 | ) | | | (121,336 | ) | | | (81,697 | ) | | | (39,639 | ) |
| Northern Trust Corp. | | | 110.00 | | | 07/20/2018 | | | (250 | ) | | | (25,000 | ) | | | (75,625 | ) | | | (95,186 | ) | | | 19,561 | |
| Occidental Petroleum Corp. | | | 75.00 | | | 06/15/2018 | | | (159 | ) | | | (15,900 | ) | | | (57,240 | ) | | | (20,582 | ) | | | (36,658 | ) |
| QUALCOMM Inc. | | | 60.00 | | | 06/15/2018 | | | (300 | ) | | | (30,000 | ) | | | (6,450 | ) | | | (45,333 | ) | | | 38,883 | |
| QUALCOMM Inc. | | | 62.50 | | | 06/15/2018 | | | (288 | ) | | | (28,800 | ) | | | (2,160 | ) | | | (34,398 | ) | | | 32,238 | |
| Range Resources Corp. | | | 17.00 | | | 06/15/2018 | | | (850 | ) | | | (85,000 | ) | | | (12,750 | ) | | | (60,291 | ) | | | 47,541 | |
| Regions Financial Corp. | | | 18.00 | | | 05/18/2018 | | | (580 | ) | | | (58,000 | ) | | | (51,330 | ) | | | (54,512 | ) | | | 3,182 | |
| Regions Financial Corp. | | | 20.00 | | | 05/18/2018 | | | (233 | ) | | | (23,300 | ) | | | (1,864 | ) | | | (16,514 | ) | | | 14,650 | |
| Regions Financial Corp. | | | 20.00 | | | 08/17/2018 | | | (560 | ) | | | (56,000 | ) | | | (28,000 | ) | | | (39,351 | ) | | | 11,351 | |
| Regions Financial Corp. | | | 21.00 | | | 08/17/2018 | | | (20 | ) | | | (2,000 | ) | | | (540 | ) | | | (1,619 | ) | | | 1,079 | |
| SPDR S&P Oil & Gas Exploration & Production ETF | | | 35.00 | | | 05/18/2018 | | | (455 | ) | | | (45,500 | ) | | | (204,750 | ) | | | (60,383 | ) | | | (144,367 | ) |
| Steel Dynamics Inc. | | | 49.00 | | | 05/18/2018 | | | (227 | ) | | | (22,700 | ) | | | (4,540 | ) | | | (48,869 | ) | | | 44,329 | |
| Steel Dynamics Inc. | | | 50.00 | | | 05/18/2018 | | | (227 | ) | | | (22,700 | ) | | | (2,270 | ) | | | (42,231 | ) | | | 39,961 | |
| T-Mobile U.S. Inc. | | | 65.00 | | | 05/18/2018 | | | (298 | ) | | | (29,800 | ) | | | (17,135 | ) | | | (55,201 | ) | | | 38,066 | |
| T-Mobile U.S. Inc. | | | 67.50 | | | 05/18/2018 | | | (500 | ) | | | (50,000 | ) | | | (12,500 | ) | | | (106,306 | ) | | | 93,806 | |
| T-Mobile U.S. Inc. | | | 67.50 | | | 08/17/2018 | | | (200 | ) | | | (20,000 | ) | | | (25,500 | ) | | | (49,610 | ) | | | 24,110 | |
| Textron Inc. | | | 65.00 | | | 06/15/2018 | | | (207 | ) | | | (20,700 | ) | | | (19,562 | ) | | | (48,875 | ) | | | 29,313 | |
| Weyerhaeuser Co. | | | 35.00 | | | 05/18/2018 | | | (540 | ) | | | (54,000 | ) | | | (103,950 | ) | | | (48,087 | ) | | | (55,863 | ) |
| Weyerhaeuser Co. | | | 36.00 | | | 05/18/2018 | | | (503 | ) | | | (50,300 | ) | | | (52,815 | ) | | | (39,317 | ) | | | (13,498 | ) |
| Whirlpool Corp. | | | 160.00 | | | 05/18/2018 | | | (52 | ) | | | (5,200 | ) | | | (3,120 | ) | | | (22,199 | ) | | | 19,079 | |
| Whirlpool Corp. | | | 160.00 | | | 06/15/2018 | | | (81 | ) | | | (8,100 | ) | | | (20,129 | ) | | | (19,446 | ) | | | (683 | ) |
| Xilinx Inc. | | | 70.00 | | | 06/15/2018 | | | (19 | ) | | | (1,900 | ) | | | (1,586 | ) | | | (2,944 | ) | | | 1,358 | |
| Xilinx Inc. | | | 72.50 | | | 06/15/2018 | | | (162 | ) | | | (16,200 | ) | | | (8,748 | ) | | | (46,361 | ) | | | 37,613 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Options Written, at Value | | | | | | | | | | | | | | | | $ | (2,178,521 | ) | | $ | (2,578,996 | ) | | | $ 400,475 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| See accompanying Notes to Financial Statements. |
| | |
| |
| 26 | |
| Madison Funds | April 30, 2018 |
| |
| |
| Madison Dividend Income Fund Portfolio of Investments (unaudited) |
| | | | Shares | | Value (Note 2) | |
| | | | | | | |
| COMMON STOCKS - 98.2% | | | | | | | |
| | | | | | | | |
| Consumer Discretionary - 10.7% | | | | | | | |
| Carnival Corp. | | | 33,500 | | $ | 2,112,510 | |
| Home Depot Inc./The | | | 15,500 | | | 2,864,400 | |
| McDonald’s Corp. | | | 10,500 | | | 1,758,120 | |
| Starbucks Corp. | | | 43,000 | | | 2,475,510 | |
| TJX Cos. Inc./The | | | 30,000 | | | 2,545,500 | |
| | | | | | | |
| | | | | | | 11,756,040 | |
| Consumer Staples - 9.3% | | | | | | | |
| Diageo PLC, ADR | | | 17,500 | | | 2,484,300 | |
| JM Smucker Co./The | | | 10,000 | | | 1,140,800 | |
| Nestle S.A., ADR | | | 33,000 | | | 2,552,880 | |
| PepsiCo Inc. | | | 21,500 | | | 2,170,210 | |
| Procter & Gamble Co./The | | | 26,000 | | | 1,880,840 | |
| | | | | | | |
| | | | | | | 10,229,030 | |
| Energy - 9.4% | | | | | | | |
| Chevron Corp. | | | 23,500 | | | 2,940,085 | |
| Exxon Mobil Corp. | | | 55,000 | | | 4,276,250 | |
| Schlumberger Ltd. | | | 45,000 | | | 3,085,200 | |
| | | | | | | |
| | | | | | | 10,301,535 | |
| Financials - 17.1% | | | | | | | |
| BB&T Corp. | | | 34,000 | | | 1,795,200 | |
| Chubb Ltd. | | | 11,500 | | | 1,560,205 | |
| CME Group Inc. | | | 22,000 | | | 3,468,960 | |
| Northern Trust Corp. | | | 15,500 | | | 1,654,625 | |
| PNC Financial Services Group Inc./The | | | 12,000 | | | 1,747,320 | |
| Travelers Cos. Inc./The | | | 18,000 | | | 2,368,800 | |
| US Bancorp | | | 64,000 | | | 3,228,800 | |
| Wells Fargo & Co. | | | 56,000 | | | 2,909,760 | |
| | | | | | | |
| | | | | | | 18,733,670 | |
| Health Care - 13.2% | | | | | | | |
| Amgen Inc. | | | 11,500 | | | 2,006,520 | |
| Johnson & Johnson | | | 25,000 | | | 3,162,250 | |
| Medtronic PLC | | | 29,500 | | | 2,363,835 | |
| Merck & Co. Inc. | | | 35,500 | | | 2,089,885 | |
| Novartis AG, ADR | | | 30,000 | | | 2,300,700 | |
| Pfizer Inc. | | | 71,000 | | | 2,599,310 | |
| | | | | | | |
| | | | | | | 14,522,500 | |
| Industrials - 13.7% | | | | | | | |
| 3M Co. | | | 6,000 | | | 1,166,340 | |
| Caterpillar Inc. | | | 8,000 | | | 1,154,880 | |
| Emerson Electric Co. | | | 34,500 | | | 2,291,145 | |
| Fastenal Co. | | | 55,000 | | | 2,749,450 | |
| Union Pacific Corp. | | | 14,000 | | | 1,870,820 | |
| United Parcel Service Inc., Class B | | | 26,000 | | | 2,951,000 | |
| United Technologies Corp. | | | 23,500 | | | 2,823,525 | |
| | | | | | | |
| | | | | | | 15,007,160 | |
| Information Technology - 12.7% | | | | | | | |
| Accenture PLC, Class A | | | 10,000 | | | 1,512,000 | |
| Analog Devices Inc. | | | 17,000 | | | 1,484,950 | |
| Automatic Data Processing Inc. | | | 11,000 | | | 1,298,880 | |
| Cisco Systems Inc. | | | 86,500 | | | 3,831,085 | |
| Microsoft Corp. | | | 38,000 | | | 3,553,760 | |
| TE Connectivity Ltd. | | | 11,500 | | | 1,055,125 | |
| Texas Instruments Inc. | | | 11,500 | | | 1,166,445 | |
| | | | | | | |
| | | | | | | 13,902,245 | |
| Materials - 6.0% | | | | | | | |
| Nucor Corp. | | | 46,000 | | | 2,834,520 | |
| Praxair Inc. | | | 24,500 | | | 3,736,740 | |
| | | | | | | |
| | | | | | | 6,571,260 | |
| Telecommunication Service - 2.5% | | | | | | | |
| Verizon Communications Inc. | | | 54,500 | | | 2,689,575 | |
| | | | | | | |
| | | | | | | | |
| Utilities - 3.6% | | | | | | | |
| Dominion Energy Inc. | | | 25,500 | | | 1,697,280 | |
| NextEra Energy Inc. | | | 14,000 | | | 2,294,740 | |
| | | | | | | |
| | | | | | | 3,992,020 | |
| | | | | | | |
Total Common Stocks | | | | | | | |
(Cost $92,233,512) | | | | | | 107,705,035 | |
| | | | | | | | |
| SHORT-TERM INVESTMENTS - 1.2% | | | | | | | |
| State Street Institutional U.S. Government | | | | | | | |
| Money Market Fund, 1.63%, Premier Class | | | 1,265,364 | | | 1,265,364 | |
| | | | | | | |
Total Short-Term Investments | | | | | | | |
(Cost $1,265,364) | | | | | | 1,265,364 | |
| | | | | | | |
| | | | | | | | |
| TOTAL INVESTMENTS - 99.4% | | | | | | | |
| (Cost $93,498,876**) | | | | | | 108,970,399 | |
| | | | | | | | |
| NET OTHER ASSETS AND LIABILITIES - 0.6% | | | | | | 671,571 | |
| | | | | | | |
| TOTAL NET ASSETS - 100.0% | | | | | $ | 109,641,970 | |
| | | | | | | |
| ** | | Aggregate cost for Federal tax purposes was $93,544,017. |
| ADR | | American Depositary Receipt. |
| PLC | | Public Limited Company. |
| |
| Madison Large Cap Value Fund Portfolio of Investments (unaudited) |
| | | | Shares | | Value (Note 2) | |
| | | | | | | |
| COMMON STOCKS - 94.9% | | | | | | | |
| | | | | | | | |
| Consumer Staples - 5.1% | | | | | | | |
| Archer-Daniels-Midland Co. | | | 69,000 | | $ | 3,131,220 | |
| Nestle S.A., ADR | | | 24,000 | | | 1,856,640 | |
| | | | | | | |
| | | | | | | 4,987,860 | |
| Energy - 15.6% | | | | | | | |
| Canadian Natural Resources Ltd. | | | 103,500 | | | 3,734,280 | |
| Chevron Corp. | | | 16,000 | | | 2,001,760 | |
| EOG Resources Inc. | | | 44,000 | | | 5,199,480 | |
| Halliburton Co. | | | 83,500 | | | 4,424,665 | |
| | | | | | | |
| | | | | | | 15,360,185 | |
| Financials - 22.9% | | | | | | | |
| Bank of America Corp. | | | 131,000 | | | 3,919,520 | |
| Bank of New York Mellon Corp./The | | | 79,500 | | | 4,333,545 | |
| Berkshire Hathaway Inc., Class B * | | | 11,000 | | | 2,131,030 | |
| Hartford Financial Services Group Inc./The | | | 54,500 | | | 2,934,280 | |
| JPMorgan Chase & Co. | | | 39,500 | | | 4,296,810 | |
| Regions Financial Corp. | | | 112,000 | | | 2,094,400 | |
| US Bancorp | | | 55,500 | | | 2,799,975 | |
| | | | | | | |
| | | | | | | 22,509,560 | |
| Health Care - 6.4% | | | | | | | |
| Baxter International Inc. | | | 59,500 | | | 4,135,250 | |
| Humana Inc. | | | 7,500 | | | 2,206,350 | |
| | | | | | | |
| | | | | | | 6,341,600 | |
| Industrials - 10.7% | | | | | | | |
| FedEx Corp. | | | 15,700 | | | 3,881,040 | |
| Jacobs Engineering Group Inc. | | | 42,500 | | | 2,468,825 | |
| Textron Inc. | | | 67,500 | | | 4,194,450 | |
| | | | | | | |
| | | | | | | 10,544,315 | |
| Information Technology - 6.7% | | | | | | | |
| Seagate Technology PLC | | | 54,500 | | | 3,155,005 | |
| TE Connectivity Ltd. | | | 38,000 | | | 3,486,500 | |
| | | | | | | |
| | | | | | | 6,641,505 | |
| Materials - 12.2% | | | | | | | |
| DowDuPont Inc. | | | 60,000 | | | 3,794,400 | |
| Newmont Mining Corp. | | | 63,500 | | | 2,494,915 | |
| Rio Tinto PLC, ADR | | | 72,500 | | | 3,983,875 | |
| Teck Resources Ltd., Class B | | | 70,500 | | | 1,771,665 | |
| | | | | | | |
| | | | | | | 12,044,855 | |
| Real Estate - 4.1% | | | | | | | |
| Weyerhaeuser Co. | | | 109,000 | | | 4,009,020 | |
| | | | | | | |
| Telecommunication Service - 3.7% | | | | | | | |
| T-Mobile U.S. Inc. * | | | 61,000 | | | 3,691,110 | |
| | | | | | | |
| | | | | | | | |
| Utilities - 7.5% | | | | | | | |
| AES Corp. | | | 312,000 | | | 3,818,880 | |
| NRG Energy Inc. | | | 114,000 | | | 3,534,000 | |
| | | | | | | |
| | | | | | | 7,352,880 | |
| | | | | | | |
Total Common Stocks | | | | | | | |
(Cost $76,229,721) | | | | | | 93,482,890 | |
| | | | | | | | |
| SHORT-TERM INVESTMENTS - 5.5% | | | | | | | |
| State Street Institutional U.S. Government | | | | | | | |
| Money Market Fund, 1.63%, Premier Class | | | 5,371,989 | | | 5,371,989 | |
| | | | | | | |
Total Short-Term Investments | | | | | | | |
(Cost $5,371,989) | | | | | | 5,371,989 | |
| | | | | | | |
| TOTAL INVESTMENTS - 100.4% | | | | | | | |
| (Cost $81,601,710**) | | | | | | 98,854,879 | |
| | | | | | | | |
| NET OTHER ASSETS AND LIABILITIES - (0.4%) | | | | | | (406,553 | ) |
| | | | | | | |
| TOTAL NET ASSETS - 100.0% | | | | | $ | 98,448,326 | |
| | | | | | | |
| * | | Non-income producing. |
| ** | | Aggregate cost for Federal tax purposes was $81,655,079. |
| ADR | | American Depositary Receipt. |
| PLC | | Public Limited Company. |
| See accompanying Notes to Financial Statements. |
| | |
| |
| | 27 |
| Madison Funds | April 30, 2018 |
| |
| |
| Madison Investors Fund Portfolio of Investments (unaudited) |
| | | | Shares | | Value (Note 2) | |
| | | | | | | |
| COMMON STOCKS - 96.5% | | | | | | | |
| | | | | | | | |
| Consumer Discretionary - 20.4% | | | | | | | |
| CarMax Inc.* | | | 148,477 | | $ | 9,279,813 | |
| Comcast Corp., Class A | | | 278,940 | | | 8,755,927 | |
| O’Reilly Automotive Inc.* | | | 24,107 | | | 6,173,079 | |
| Omnicom Group Inc. / Omnicom Capital Inc. | | | 165,761 | | | 12,209,955 | |
| Starbucks Corp. | | | 119,867 | | | 6,900,743 | |
| TJX Cos. Inc./The | | | 183,829 | | | 15,597,891 | |
| | | | | | | |
| | | | | | | 58,917,408 | |
| Consumer Staples - 4.2% | | | | | | | |
| Diageo PLC, ADR | | | 38,675 | | | 5,490,303 | |
| JM Smucker Co./The | | | 58,654 | | | 6,691,248 | |
| | | | | | | |
| | | | | | | 12,181,551 | |
| Financials - 16.1% | | | | | | | |
| Berkshire Hathaway Inc., Class B* | | | 57,168 | | | 11,075,157 | |
| Brookfield Asset Management Inc., | | | | | | | |
| Class A | | | 274,868 | | | 10,895,768 | |
| Charles Schwab Corp./The | | | 108,099 | | | 6,018,952 | |
| Markel Corp.* | | | 4,231 | | | 4,781,199 | |
| US Bancorp | | | 268,740 | | | 13,557,933 | |
| | | | | | | |
| | | | | | | 46,329,009 | |
| Health Care - 15.9% | | | | | | | |
| Danaher Corp. | | | 121,956 | | | 12,234,626 | |
| Henry Schein Inc.* | | | 146,162 | | | 11,108,312 | |
| Johnson & Johnson | | | 53,716 | | | 6,794,537 | |
| Novartis AG, ADR | | | 147,322 | | | 11,298,124 | |
| Varian Medical Systems Inc.* | | | 38,475 | | | 4,447,325 | |
| | | | | | | |
| | | | | | | 45,882,924 | |
| Industrials - 6.4% | | | | | | | |
| Copart Inc.* | | | 101,362 | | | 5,177,571 | |
| Jacobs Engineering Group Inc. | | | 227,687 | | | 13,226,338 | |
| | | | | | | |
| | | | | | | 18,403,909 | |
| Information Technology - 20.8% | | | | | | | |
| Accenture PLC, Class A | | | 59,778 | | | 9,038,434 | |
| Alphabet Inc., Class C* | | | 9,979 | | | 10,151,936 | |
| Analog Devices Inc. | | | 73,217 | | | 6,395,505 | |
| CDW Corp. | | | 101,360 | | | 7,225,954 | |
| Oracle Corp. | | | 240,814 | | | 10,997,975 | |
| TE Connectivity Ltd. | | | 68,567 | | | 6,291,022 | |
| Visa Inc., Class A | | | 77,543 | | | 9,838,656 | |
| | | | | | | |
| | | | | | | 59,939,482 | |
| Materials - 9.2% | | | | | | | |
| PPG Industries Inc. | | | 141,809 | | | 15,014,737 | |
| Praxair Inc. | | | 75,038 | | | 11,444,796 | |
| | | | | | | |
| | | | | | | 26,459,533 | |
| Real Estate - 3.5% | | | | | | | |
| American Tower Corp. | | | 73,257 | | | 9,989,324 | |
| | | | | | | |
Total Common Stocks | | | | | | | |
(Cost $205,808,528) | | | | | | 278,103,140 | |
| SHORT-TERM INVESTMENTS - 6.0% | | | | | | | |
| State Street Institutional U.S. | | | | | | | |
| Government Money Market Fund, 1.63%, Premier Class | | | 17,211,057 | | | 17,211,057 | |
| | | | | | | |
Total Short-Term Investments | | | | | | | |
(Cost $17,211,057) | | | | | | 17,211,057 | |
| | | | | | | |
| TOTAL INVESTMENTS - 102.5% | | | | | | | |
| (Cost $223,019,585**) | | | | | | 295,314,197 | |
| NET OTHER ASSETS AND LIABILITIES - (2.5%) | | | | | | (7,280,277 | ) |
| | | | | | | |
| TOTAL NET ASSETS - 100.0% | | | | | $ | 288,033,920 | |
| | | | | | | |
| * | | Non-income producing. |
| ** | | Aggregate cost for Federal tax purposes was $223,131,864. |
| ADR | | American Depositary Receipt. |
| PLC | | Public Limited Company. |
| |
| Madison Mid Cap Fund Portfolio of Investments (unaudited) |
| | | | Shares | | Value (Note 2) | |
| | | | | | | |
| COMMON STOCKS - 95.6% | | | | | | | |
| | | | | | | | |
| Consumer Discretionary - 23.0% | | | | | | | |
| CarMax Inc.* | | | 208,570 | | $ | 13,035,625 | |
| Liberty Broadband Corp., Class C* | | | 216,048 | | | 15,315,643 | |
| Liberty Global PLC, Series C* | | | 301,577 | | | 8,775,891 | |
| O’Reilly Automotive Inc.* | | | 46,526 | | | 11,913,913 | |
| Omnicom Group Inc. | | | 161,763 | | | 11,915,462 | |
| Ross Stores Inc. | | | 87,585 | | | 7,081,247 | |
| TJX Cos. Inc./The | | | 137,890 | | | 11,699,966 | |
| | | | | | | |
| | | | | | | 79,737,747 | |
| Consumer Staples - 1.1% | | | | | | | |
| Brown-Forman Corp., Class B | | | 66,046 | | | 3,701,218 | |
| | | | | | | |
| Energy - 0.9% | | | | | | | |
| Oceaneering International Inc. | | | 147,917 | | | 3,141,757 | |
| | | | | | | |
| | | | | | | | |
| Financials - 23.4% | | | | | | | |
| Arch Capital Group Ltd.* | | | 198,642 | | | 15,917,183 | |
| Brookfield Asset Management Inc., | | | | | | | |
| Class A | | | 326,615 | | | 12,947,019 | |
| Brown & Brown Inc. | | | 522,176 | | | 14,218,852 | |
| Glacier Bancorp Inc. | | | 203,459 | | | 7,534,087 | |
| Markel Corp.* | | | 16,048 | | | 18,134,882 | |
| WR Berkley Corp. | | | 164,242 | | | 12,245,884 | |
| | | | | | | |
| | | | | | | 80,997,907 | |
| Health Care - 13.1% | | | | | | | |
| DaVita Inc.* | | | 135,870 | | | 8,531,277 | |
| Henry Schein Inc.* | | | 176,734 | | | 13,431,784 | |
| Laboratory Corp. of America Holdings* | | | 74,294 | | | 12,685,701 | |
| Zoetis Inc. | | | 129,783 | | | 10,834,285 | |
| | | | | | | |
| | | | | | | 45,483,047 | |
| Industrials - 16.1% | | | | | | | |
| Copart Inc.* | | | 403,710 | | | 20,621,507 | |
| Expeditors International of Washington Inc. | | | 205,946 | | | 13,151,711 | |
| Fastenal Co. | | | 178,584 | | | 8,927,414 | |
| IHS Markit Ltd.* | | | 270,021 | | | 13,266,132 | |
| | | | | | | |
| | | | | | | 55,966,764 | |
| Information Technology - 6.3% | | | | | | | |
| Amphenol Corp., Class A | | | 82,414 | | | 6,898,876 | |
| CDW Corp. | | | 208,183 | | | 14,841,366 | |
| | | | | | | |
| | | | | | | 21,740,242 | |
| Materials - 9.0% | | | | | | | |
| Axalta Coating Systems Ltd.* | | | 400,679 | | | 12,380,981 | |
| Crown Holdings Inc.* | | | 177,345 | | | 8,838,875 | |
| NewMarket Corp. | | | 9,037 | | | 3,429,993 | |
| RPM International Inc. | | | 138,286 | | | 6,679,214 | |
| | | | | | | |
| | | | | | | 31,329,063 | |
| Real Estate - 2.7% | | | | | | | |
| Crown Castle International Corp. | | | 91,824 | | | 9,262,287 | |
| | | | | | | |
Total Common Stocks | | | | | | | |
(Cost $212,243,087) | | | | | | 331,360,032 | |
| SHORT-TERM INVESTMENTS - 5.0% | | | | | | | |
| State Street Institutional U.S. | | | | | | | |
| Government Money Market Fund, 1.63%, Premier Class | | | 17,391,438 | | | 17,391,438 | |
| | | | | | | |
Total Short-Term Investments | | | | | | | |
(Cost $17,391,438) | | | | | | 17,391,438 | |
| | | | | | | |
| TOTAL INVESTMENTS - 100.6% | | | | | | | |
| (Cost $229,634,525**) | | | | | | 348,751,470 | |
| NET OTHER ASSETS AND LIABILITIES - (0.6%) | | | | | | (2,169,851 | ) |
| | | | | | | |
| TOTAL NET ASSETS - 100.0% | | | | | $ | 346,581,619 | |
| | | | | | | |
| * | | Non-income producing. |
| ** | | Aggregate cost for Federal tax purposes was $229,634,544. |
| PLC | | Public Limited Company. |
| See accompanying Notes to Financial Statements. |
| | |
| |
| 28 | |
| Madison Funds | April 30, 2018 |
| |
| |
| Madison Small Cap Fund Portfolio of Investments (unaudited) |
| | | | Shares | | Value (Note 2) | |
| | | | | | | |
| COMMON STOCKS - 96.0% | | | | | | | |
| | | | | | | | |
| Consumer Discretionary - 3.9% | | | | | | | |
| Cato Corp./The, Class A | | | 36,183 | | $ | 586,526 | |
| Dave & Buster’s Entertainment Inc.* | | | 6,812 | | | 289,442 | |
| Fred’s Inc., Class A | | | 73,063 | | | 174,986 | |
| Gentherm Inc.* | | | 16,450 | | | 556,010 | |
| Helen of Troy Ltd.* | | | 6,556 | | | 584,467 | |
| TRI Pointe Group Inc.* | | | 71,524 | | | 1,223,776 | |
| | | | | | | |
| | | | | | | 3,415,207 | |
| Consumer Staples - 3.4% | | | | | | | |
| C&C Group PLC (A) | | | 344,192 | | | 1,295,814 | |
| Cranswick PLC (A) | | | 30,613 | | | 1,224,705 | |
| Smart & Final Stores Inc.* | | | 86,702 | | | 442,180 | |
| | | | | | | |
| | | | | | | 2,962,699 | |
| Energy - 4.7% | | | | | | | |
| Dorian LPG Ltd.* | | | 65,156 | | | 468,472 | |
| Era Group Inc.* | | | 34,454 | | | 363,490 | |
| Resolute Energy Corp.* (B) | | | 26,638 | | | 889,443 | |
| Scorpio Tankers Inc. | | | 256,123 | | | 681,287 | |
| SEACOR Holdings Inc.* | | | 19,910 | | | 1,091,864 | |
| SEACOR Marine Holdings Inc.* | | | 28,632 | | | 678,292 | |
| | | | | | | |
| | | | | | | 4,172,848 | |
| Financials - 20.5% | | | | | | | |
| 1st Source Corp. | | | 17,711 | | | 920,972 | |
| Banc of California Inc. | | | 62,334 | | | 1,196,813 | |
| FCB Financial Holdings Inc., Class A* | | | 11,144 | | | 644,123 | |
| First Busey Corp. | | | 41,929 | | | 1,243,195 | |
| First Midwest Bancorp Inc. | | | 93,478 | | | 2,272,450 | |
| Flushing Financial Corp. | | | 41,771 | | | 1,082,287 | |
| Great Western Bancorp Inc. | | | 41,120 | | | 1,691,677 | |
| International Bancshares Corp. | | | 40,084 | | | 1,595,343 | |
| Kemper Corp. | | | 26,295 | | | 1,774,912 | |
| MB Financial Inc. | | | 43,041 | | | 1,834,407 | |
| Northwest Bancshares Inc. | | | 112,095 | | | 1,860,777 | |
| Solar Capital Ltd. | | | 35,355 | | | 720,535 | |
| Union Bankshares Corp. | | | 31,790 | | | 1,201,980 | |
| | | | | | | |
| | | | | | | 18,039,471 | |
| Health Care - 5.2% | | | | | | | |
| Allscripts Healthcare Solutions Inc.* | | | 128,194 | | | 1,489,614 | |
| AMN Healthcare Services Inc.* | | | 11,361 | | | 759,483 | |
| CorVel Corp.* | | | 14,506 | | | 711,519 | |
| Haemonetics Corp.* | | | 12,719 | | | 992,591 | |
| Natus Medical Inc.* | | | 17,599 | | | 581,647 | |
| | | | | | | |
| | | | | | | 4,534,854 | |
| Industrials - 33.5% | | | | | | | |
| Aerospace & Defense - 2.4% | | | | | | | |
| Astronics Corp.* | | | 11,127 | | | 407,026 | |
| Cubic Corp. | | | 27,498 | | | 1,698,001 | |
| | | | | | | |
| | | | | | | 2,105,027 | |
| Air Freight & Logistics - 1.2% | | | | | | | |
| Forward Air Corp. | | | 19,188 | | | 1,035,960 | |
| | | | | | | |
| | | | | | | | |
| Building Products - 1.7% | | | | | | | |
| Tyman PLC (A) | | | 342,687 | | | 1,475,509 | |
| | | | | | | |
| | | | | | | | |
| Commercial Services & Supplies - 4.9% | | | | | | | |
| ACCO Brands Corp. | | | 110,237 | | | 1,328,356 | |
| Matthews International Corp., Class A | | | 25,019 | | | 1,229,684 | |
| SP Plus Corp.* | | | 30,058 | | | 1,056,539 | |
| Steelcase Inc., Class A | | | 53,238 | | | 705,403 | |
| | | | | | | |
| | | | | | | 4,319,982 | |
| Construction & Engineering - 0.8% | | | | | | | |
| Primoris Services Corp. | | | 27,532 | | | 704,544 | |
| | | | | | | |
| | | | | | | | |
| Electrical Equipment - 1.7% | | | | | | | |
| Thermon Group Holdings Inc.* | | | 66,763 | | | 1,521,529 | |
| | | | | | | |
| | | | | | | | |
| Machinery - 10.9% | | | | | | | |
| Albany International Corp., Class A | | | 32,137 | | | 1,900,903 | |
| CIRCOR International Inc. | | | 19,424 | | | 822,995 | |
| ESCO Technologies Inc. | | | 29,902 | | | 1,670,027 | |
| Luxfer Holdings PLC | | | 61,948 | | | 867,272 | |
| Mueller Industries Inc. | | | 74,571 | | | 2,026,840 | |
| TriMas Corp.* | | | 85,905 | | | 2,328,025 | |
| | | | | | | |
| | | | | | | 9,616,062 | |
| Professional Services - 8.5% | | | | | | | |
| Forrester Research Inc. | | | 37,210 | | | 1,480,958 | |
| FTI Consulting Inc.* | | | 35,764 | | | 2,088,618 | |
| Huron Consulting Group Inc.* | | | 28,191 | | | 1,055,753 | |
| ICF International Inc. | | | 15,379 | | | 1,031,931 | |
| Mistras Group Inc.* | | | 48,995 | | | 953,933 | |
| Navigant Consulting Inc.* | | | 40,760 | | | 871,856 | |
| | | | | | | |
| | | | | | | 7,483,049 | |
| Trading Companies & Distributors - 1.4% | | | | | | | |
| GATX Corp. | | | 18,181 | | | 1,186,128 | |
| | | | | | | |
| | | | | | | 29,447,790 | |
| Information Technology - 7.6% | | | | | | | |
| Belden Inc. | | | 36,075 | | | 2,222,220 | |
| CTS Corp. | | | 42,834 | | | 1,282,878 | |
| Diebold Nixdorf Inc. (B) | | | 43,850 | | | 673,098 | |
| ScanSource Inc.* | | | 18,144 | | | 622,339 | |
| WNS Holdings Ltd., ADR* | | | 39,157 | | | 1,915,952 | |
| | | | | | | |
| | | | | | | 6,716,487 | |
| Materials - 7.2% | | | | | | | |
| Greif Inc., Class A | | | 30,841 | | | 1,804,815 | |
| Neenah Inc. | | | 14,632 | | | 1,141,296 | |
| Orion Engineered Carbons S.A. | | | 62,229 | | | 1,667,737 | |
| Sensient Technologies Corp. | | | 26,035 | | | 1,735,233 | |
| | | | | | | |
| | | | | | | 6,349,081 | |
| Real Estate - 8.6% | | | | | | | |
| Corporate Office Properties Trust, REIT | | | 44,447 | | | 1,222,737 | |
| DiamondRock Hospitality Co., REIT | | | 79,493 | | | 878,397 | |
| Education Realty Trust Inc., REIT | | | 43,698 | | | 1,438,101 | |
| PotlatchDeltic Corp., REIT | | | 35,462 | | | 1,838,705 | |
| Ramco-Gershenson Properties Trust, REIT | | | 101,725 | | | 1,215,614 | |
| Summit Hotel Properties Inc., REIT | | | 67,939 | | | 983,757 | |
| | | | | | | |
| | | | | | | 7,577,311 | |
| Utilities - 1.4% | | | | | | | |
| New Jersey Resources Corp. | | | 14,765 | | | 610,533 | |
| Spire Inc. | | | 9,159 | | | 660,822 | |
| | | | | | | |
| | | | | | | 1,271,355 | |
| | | | | | | |
Total Common Stocks | | | | | | | |
(Cost $68,587,345) | | | | | | 84,487,103 | |
| SHORT-TERM INVESTMENTS - 4.0% | | | | | | | |
| State Street Institutional U.S. Government | | | | | | | |
| Money Market Fund, 1.63%, Premier Class | | | 3,548,059 | | | 3,548,059 | |
| | | | | | | |
Total Short-Term Investments | | | | | | | |
(Cost $3,548,059) | | | | | | 3,548,059 | |
| COLLATERAL FOR SECURITIES ON LOAN (C) - 1.8% | | | | | | | |
| State Street Navigator Securities Lending Government Money Market Portfolio, 1.69% | | | 1,563,993 | | | 1,563,993 | |
| | | | | | | |
Total Collateral for Securities on Loan | | | | | | | |
(Cost $1,563,993) | | | | | | 1,563,993 | |
| | | | | | | |
| TOTAL INVESTMENTS - 101.8% | | | | | | | |
| (Cost $73,699,397**) | | | | | | 89,599,155 | |
| NET OTHER ASSETS AND LIABILITIES - (1.8%) | | | | | | (1,574,656 | ) |
| | | | | | | |
| TOTAL NET ASSETS - 100.0% | | | | | $ | 88,024,499 | |
| | | | | | | |
| * | | Non-income producing. |
| ** | | Aggregate cost for Federal tax purposes was $74,496,630. |
| (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) | | A portion of securities on loan with an aggregate value of $1,531,282; cash collateral (included in liabilities) of $1,563,993 was received with which the Fund invested in the State Street Navigator Securities Lending Government Money Market Portfolio. |
| (C) | | Represents investments of cash collateral received in connection with securities lending. |
| ADR | | American Depositary Receipt. |
| PLC | | Public Limited Company. |
| REIT | | Real Estate Investment Trust. |
| See accompanying Notes to Financial Statements. |
| | |
| |
| | 29 |
| Madison Funds | April 30, 2018 |
| |
| |
| Madison International Stock Fund Portfolio of Investments (unaudited) |
| | | | Shares | | Value (Note 2) | |
| | | | | | | |
| COMMON STOCKS - 96.8% | | | | | | | |
| | | | | | | | |
| Australia - 3.2% | | | | | | | |
| BHP Billiton PLC (A) | | | 31,886 | | $ | 675,905 | |
| Caltex Australia Ltd. (A) | | | 7,006 | | | 163,068 | |
| | | | | | | |
| | | | | | | 838,973 | |
| Belgium - 1.5% | | | | | | | |
| Anheuser-Busch InBev S.A. (A) (B) | | | 4,013 | | | 397,325 | |
| | | | | | | |
| | | | | | | | |
| Brazil - 0.8% | | | | | | | |
| Cielo S.A. | | | 37,200 | | | 203,882 | |
| | | | | | | |
| | | | | | | | |
| Canada - 4.4% | | | | | | | |
| Canadian National Railway Co. | | | 2,980 | | | 230,170 | |
| National Bank of Canada | | | 8,300 | | | 394,201 | |
| Suncor Energy Inc. | | | 13,780 | | | 526,966 | |
| | | | | | | |
| | | | | | | 1,151,337 | |
| Denmark - 1.9% | | | | | | | |
| AP Moeller - Maersk AS, Class B (A) | | | 116 | | | 185,747 | |
| Carlsberg AS, Class B (A) | | | 2,839 | | | 317,414 | |
| | | | | | | |
| | | | | | | 503,161 | |
| Finland - 1.5% | | | | | | | |
| Sampo Oyj, Class A (A) | | | 7,079 | | | 380,782 | |
| | | | | | | |
| | | | | | | | |
| France - 12.0% | | | | | | | |
| Air Liquide S.A. (A) | | | 2,996 | | | 389,251 | |
| Capgemini SE (A) | | | 3,082 | | | 422,985 | |
| Cie de Saint-Gobain (A) | | | 5,529 | | | 288,748 | |
| Cie Generale des Etablissements Michelin (A) | | | 3,340 | | | 468,718 | |
| Safran S.A. (A) | | | 3,655 | | | 428,661 | |
| Societe Generale S.A. (A) | | | 5,761 | | | 315,559 | |
| Valeo S.A. (A) | | | 4,748 | | | 315,957 | |
| Vinci S.A. (A) | | | 5,329 | | | 532,119 | |
| | | | | | | |
| | | | | | | 3,161,998 | |
| Germany - 4.4% | | | | | | | |
| Deutsche Post AG (A) | | | 5,501 | | | 239,545 | |
| Fresenius SE & Co. KGaA (A) | | | 3,212 | | | 245,222 | |
| SAP SE (A) | | | 6,106 | | | 680,565 | |
| | | | | | | |
| | | | | | | 1,165,332 | |
| India - 0.9% | | | | | | | |
| ICICI Bank Ltd., ADR | | | 29,250 | | | 248,918 | |
| | | | | | | |
| | | | | | | | |
| Ireland - 5.7% | | | | | | | |
| Medtronic PLC | | | 6,580 | | | 527,255 | |
| Ryanair Holdings PLC, ADR * | | | 3,157 | | | 347,175 | |
| Shire PLC (A) | | | 11,651 | | | 619,168 | |
| | | | | | | |
| | | | | | | 1,493,598 | |
| Japan - 17.9% | | | | | | | |
| Daiwa House Industry Co. Ltd. (A) | | | 17,896 | | | 655,744 | |
| Don Quijote Holdings Co. Ltd. (A) | | | 13,700 | | | 737,648 | |
| Isuzu Motors Ltd. (A) | | | 22,900 | | | 350,245 | |
| Kao Corp. (A) | | | 4,110 | | | 295,048 | |
| KDDI Corp. (A) | | | 11,800 | | | 316,778 | |
| Makita Corp. (A) | | | 11,000 | | | 493,184 | |
| Nexon Co. Ltd. * (A) | | | 22,700 | | | 330,140 | |
| Shin-Etsu Chemical Co. Ltd. (A) | | | 3,000 | | | 298,744 | |
| Sony Corp. (A) | | | 5,500 | | | 270,862 | |
| Sumitomo Mitsui Financial Group Inc. (A) | | | 10,400 | | | 431,655 | |
| United Arrows Ltd. (A) | | | 4,700 | | | 172,937 | |
| Yamaha Corp. (A) | | | 7,300 | | | 353,010 | |
| | | | | | | |
| | | | | | | 4,705,995 | |
| Luxembourg - 0.8% | | | | | | | |
| Tenaris S.A. (A) | | | 10,940 | | | 204,764 | |
| | | | | | | |
| | | | | | | | |
| Netherlands - 3.0% | | | | | | | |
| ABN AMRO Group N.V. (A) (C) | | | 6,224 | | | 193,003 | |
| Wolters Kluwer N.V. (A) | | | 10,957 | | | 591,168 | |
| | | | | | | |
| | | | | | | 784,171 | |
| Norway - 2.8% | | | | | | | |
| Statoil ASA (A) | | | 11,644 | | | 298,005 | |
| Telenor ASA (A) | | | 19,883 | | | 439,744 | |
| | | | | | | |
| | | | | | | 737,749 | |
| Singapore - 2.4% | | | | | | | |
| DBS Group Holdings Ltd. (A) | | | 18,840 | | | 435,226 | |
| NetLink NBN Trust * (A) | | | 303,200 | | | 185,253 | |
| | | | | | | |
| | | | | | | 620,479 | |
| Spain - 1.4% | | | | | | | |
| Red Electrica Corp. S.A. (A) | | | 17,152 | | | 357,010 | |
| | | | | | | |
| | | | | | | | |
| Sweden - 3.2% | | | | | | | |
| Assa Abloy AB, Class B (A) | | | 23,064 | | | 481,827 | |
| Nordea Bank AB (A) | | | 35,155 | | | 356,598 | |
| | | | | | | |
| | | | | | | 838,425 | |
| Switzerland - 6.4% | | | | | | | |
| Ferguson PLC (A) | | | 8,123 | | | 620,571 | |
| Julius Baer Group Ltd. * (A) | | | 5,411 | | | 321,233 | |
| Novartis AG (A) | | | 9,731 | | | 748,471 | |
| | | | | | | |
| | | | | | | 1,690,275 | |
| Taiwan - 1.4% | | | | | | | |
| Taiwan Semiconductor Manufacturing Co. | | | | | | | |
| Ltd., ADR | | | 9,800 | | | 376,810 | |
| | | | | | | |
| | | | | | | | |
| Turkey - 0.9% | | | | | | | |
| Turkcell Iletisim Hizmetleri AS (A) | | | 70,138 | | | 241,464 | |
| | | | | | | |
| | | | | | | | |
| United Kingdom - 20.3% | | | | | | | |
| Aon PLC | | | 3,960 | | | 564,181 | |
| British American Tobacco PLC (A) | | | 10,970 | | | 602,826 | |
| BT Group PLC (A) | | | 53,275 | | | 182,404 | |
| Compass Group PLC (A) | | | 23,692 | | | 508,176 | |
| Diageo PLC (A) | | | 7,306 | | | 259,873 | |
| Howden Joinery Group PLC (A) | | | 32,554 | | | 213,509 | |
| Informa PLC (A) | | | 30,497 | | | 309,840 | |
| Melrose Industries PLC (A) | | | 63,872 | | | 200,082 | |
| Prudential PLC (A) | | | 36,049 | | | 924,562 | |
| Royal Dutch Shell PLC, Class A (A) | | | 24,750 | | | 860,251 | |
| RSA Insurance Group PLC (A) | | | 21,329 | | | 192,781 | |
| Unilever PLC (A) | | | 9,159 | | | 513,255 | |
| | | | | | | |
| | | | | | | 5,331,740 | |
| | | | | | | |
Total Common Stocks | | | | | | | |
(Cost $18,563,548) | | | | | | 25,434,188 | |
| | | | | | | | |
| PREFERRED STOCK - 0.9% | | | | | | | |
| Germany - 0.9% | | | | | | | |
| Volkswagen AG (A) | | | 1,178 | | | 243,946 | |
| | | | | | | |
Total Preferred Stocks | | | | | | | |
(Cost $252,626) | | | | | | 243,946 | |
| SHORT-TERM INVESTMENTS - 1.7% | | | | | | | |
| | | | | | | | |
| United States - 1.7% | | | | | | | |
| State Street Institutional U.S. Government Money Market Fund, 1.63%, Premier Class | | | 453,308 | | | 453,308 | |
| | | | | | | |
Total Short-Term Investments | | | | | | | |
(Cost $453,308) | | | | | | 453,308 | |
| | | | | | | | |
| COLLATERAL FOR SECURITIES ON LOAN (D) - 1.6% | | | | | | | |
| State Street Navigator Securities Lending Government Money Market Portfolio, 1.69% | | | 408,539 | | | 408,539 | |
| | | | | | | |
Total Collateral for Securities on Loan | | | | | | | |
(Cost $408,539) | | | | | | 408,539 | |
| | | | | | | |
| | | | | | | | |
| TOTAL INVESTMENTS - 101.0% | | | | | | | |
| (Cost $19,678,021**) | | | | | | 26,539,981 | |
| NET OTHER ASSETS AND LIABILITIES - (1.0%) | | | | | | (271,464 | ) |
| | | | | | | |
| TOTAL NET ASSETS - 100.0% | | | | | $ | 26,268,517 | |
| | | | | | | |
| * | | Non-income producing. |
| ** | | Aggregate cost for Federal tax purposes was $19,962,222. |
| (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) | | A portion of securities on loan with an aggregate value of $380,896; cash collateral (included in liabilities) of $408,539 was received with which the Fund invested in the State Street Navigator Securities Lending Government Money Market Portfolio. |
| (C) | | 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.” |
| (D) | | Represents investments of cash collateral received in connection with securities lending. |
| ADR | | American Depositary Receipt. |
| PLC | | Public Limited Company. |
| SECTOR ALLOCATION AS A PERCENTAGE OF NET ASSETS AS OF 4/30/18 | | |
| Collateral for Securities on Loan | | 1.6% |
| Consumer Discretionary | | 16.5% |
| Consumer Staples | | 9.1% |
| Energy | | 7.8% |
| Financials | | 18.0% |
| Health Care | | 8.1% |
| Industrials | | 16.2% |
| Information Technology | | 7.7% |
| Materials | | 5.2% |
| Money Market Funds | | 1.7% |
| Real Estate | | 2.5% |
| Telecommunication Services | | 5.2% |
| Utilities | | 1.4% |
| Net Other Assets and Liabilities | | (1.0)% |
| See accompanying Notes to Financial Statements. |
| | |
| |
| 30 | |
Madison Funds | April 30, 2018
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| Madison Funds | April 30, 2018 |
| |
| |
| Statements of Assets and Liabilities as of April 30, 2018 (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 |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Investments in unaffiliated securities, at fair value† § | | $ | 42,898,622 | | | $ | 84,227,851 | | | $ | 39,426,937 | | | $ | 14,915,450 | | | $ | 21,107,166 | | | $ | 23,396,540 | | | $ | 94,269,613 | | | $ | 188,164,258 | |
| Investments in affiliated securities, at fair value1‡ | | | 28,849,182 | | | | 58,345,618 | | | | 26,191,431 | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Cash | | | – | | | | – | | | | – | | | | – | | | | 625,530 | | | | 73,254 | | | | – | | | | 906,291 | |
| Foreign currency (cost of $47 and 7,720) (Note 2) | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Receivables: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments sold | | | 421,314 | | | | 804,248 | | | | 1,022,421 | | | | – | | | | – | | | | – | | | | – | | | | 327,643 | |
Fund shares sold | | | 2,332 | | | | 49,361 | | | | 13,052 | | | | 9,163 | | | | 200 | | | | 1,306 | | | | 8,617 | | | | 5,838 | |
Dividends and interest | | | 63,141 | | | | 69,153 | | | | 13,998 | | | | 5,326 | | | | 260,186 | | | | 275,999 | | | | 699,054 | | | | 1,503,612 | |
Due from Adviser | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | | 72,234,591 | | | | 143,496,231 | | | | 66,667,839 | | | | 14,929,939 | | | | 21,993,082 | | | | 23,747,099 | | | | 94,977,284 | | | | 190,907,642 | |
| Liabilities: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Payables: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Investments purchased | | | – | | | | – | | | | 663,465 | | | | – | | | | 545,540 | | | | – | | | | – | | | | – | |
Fund shares repurchased | | | 43,476 | | | | 36,396 | | | | 16,849 | | | | 67,684 | | | | 190 | | | | 7,800 | | | | 146,700 | | | | 41,420 | |
Upon return of securities loaned | | | 362,291 | | | | 715,715 | | | | 498,979 | | | | – | | | | – | | | | – | | | | – | | | | 706,090 | |
Advisory agreement fees | | | 11,853 | | | | 23,537 | | | | 10,821 | | | | 4,868 | | | | 8,827 | | | | 7,843 | | | | 23,612 | | | | 78,800 | |
Service agreement fees | | | 14,817 | | | | 29,421 | | | | 13,525 | | | | 2,132 | | | | 6,179 | | | | 6,862 | | | | 14,954 | | | | 23,465 | |
Distribution fees - Class B | | | 4,435 | | | | 12,726 | | | | 5,885 | | | | 116 | | | | – | | | | – | | | | – | | | | 1,090 | |
Distribution fees - Class C | | | 12,856 | | | | 5,909 | | | | 1,431 | | | | – | | | | – | | | | – | | | | – | | | | – | |
Shareholder service fees - Class A, B & C | | | 14,776 | | | | 29,337 | | | | 13,493 | | | | – | | | | – | | | | – | | | | – | | | | 6,832 | |
Dividends | | | – | | | | – | | | | – | | | | 167 | | | | 1,060 | | | | 5,876 | | | | – | | | | 291,603 | |
Options written, at value (premium received $2,578,996) (Note 6) | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities | | | 464,504 | | | | 853,041 | | | | 1,224,448 | | | | 74,967 | | | | 561,796 | | | | 28,381 | | | | 185,266 | | | | 1,149,300 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets | | $ | 71,770,087 | | | $ | 142,643,190 | | | $ | 65,443,391 | | | $ | 14,854,972 | | | $ | 21,431,286 | | | $ | 23,718,718 | | | $ | 94,792,018 | | | $ | 189,758,342 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets consist of: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Common Stock/Shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Paid-in capital | | $ | 68,661,508 | | | $ | 125,844,274 | | | $ | 55,083,628 | | | $ | 14,855,201 | | | $ | 21,349,066 | | | $ | 23,414,706 | | | $ | 96,713,805 | | | $ | 192,204,652 | |
Accumulated undistributed net investment income (loss) | | | (310,556 | ) | | | 63,444 | | | | (42,003 | ) | | | 145 | | | | 2,000 | | | | 2,481 | | | | 156,067 | | | | (164,801 | ) |
Accumulated net realized gain (loss) on investments sold and foreign currency related transactions | | | 1,604,690 | | | | 6,336,097 | | | | 3,536,568 | | | | (374 | ) | | | (21,628 | ) | | | 41,438 | | | | (156,603 | ) | | | 140,840 | |
Net unrealized appreciation (depreciation) of investments (including appreciation | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(depreciation) of foreign currency related transactions) | | | 1,814,445 | | | | 10,399,375 | | | | 6,865,198 | | | | – | | | | 101,848 | | | | 260,093 | | | | (1,921,251 | ) | | | (2,422,349 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets | | $ | 71,770,087 | | | $ | 142,643,190 | | | $ | 65,443,391 | | | $ | 14,854,972 | | | $ | 21,431,286 | | | $ | 23,718,718 | | | $ | 94,792,018 | | | $ | 189,758,342 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Class A Shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Assets | | $ | 43,871,005 | | | $ | 112,749,172 | | | $ | 53,635,758 | | | $ | 14,670,788 | | | | | | | | | | | | | | | $ | 31,212,224 | |
Shares of beneficial interest outstanding | | | 4,146,620 | | | | 9,603,687 | | | | 4,385,329 | | | | 14,671,003 | | | | | | | | | | | | | | | | 3,215,572 | |
Net Asset Value and redemption price per share | | $ | 10.58 | | | $ | 11.74 | | | $ | 12.23 | | | $ | 1.00 | | | | | | | | | | | | | | | $ | 9.71 | |
Sales charge of offering price2 | | | 0.65 | | | | 0.72 | | | | 0.75 | | | | _ | | | | | | | | | | | | | | | | 0.46 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Maximum offering price per share | | | 11.23 | | | | 12.46 | | | | 12.98 | | | | 1.00 | | | | | | | | | | | | | | | | 10.17 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class B Shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Assets | | $ | 7,105,296 | | | $ | 20,382,184 | | | $ | 9,465,592 | | | $ | 184,184 | | | | | | | | | | | | | | | $ | 1,742,759 | |
Shares of beneficial interest outstanding | | | 666,238 | | | | 1,749,851 | | | | 794,769 | | | | 184,191 | | | | | | | | | | | | | | | | 179,452 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value and redemption price per share3 | | $ | 10.66 | | | $ | 11.65 | | | $ | 11.91 | | | $ | 1.00 | | | | | | | | | | | | | | | $ | 9.71 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class C Shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Assets | | $ | 20,793,786 | | | $ | 9,511,834 | | | $ | 2,342,041 | | | | | | | | | | | | | | | | | | | | | |
Shares of beneficial interest outstanding | | | 1,948,547 | | | | 815,957 | | | | 196,475 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value and redemption price per share3 | | $ | 10.67 | | | $ | 11.66 | | | $ | 11.92 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class Y Shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Assets | | | | | | | | | | | | | | | | | | $ | 21,431,286 | | | $ | 23,718,718 | | | $ | 94,792,018 | | | $ | 155,212,996 | |
Shares of beneficial interest outstanding | | | | | | | | | | | | | | | | | | | 1,912,959 | | | | 2,261,193 | | | | 8,870,144 | | | | 16,046,080 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value and redemption price per share3 | | | | | | | | | | | | | | | | | | $ | 11.20 | | | $ | 10.49 | | | $ | 10.69 | | | $ | 9.67 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Class R6 Shares: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 1,590,363 | |
Shares of beneficial interest outstanding | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 163,419 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value and redemption price per share3 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 9.73 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
† Cost of Investments in unaffiliated securities | | $ | 41,590,593 | | | $ | 79,359,871 | | | $ | 35,837,221 | | | $ | 14,915,450 | | | $ | 21,005,318 | | | $ | 23,136,447 | | | $ | 96,190,864 | | | $ | 190,586,607 | |
‡ Cost of investments in affiliated securities1 | | $ | 28,342,766 | | | $ | 52,814,223 | | | $ | 22,915,949 | | | $ | – | | | $ | – | | | $ | – | | | $ | – | | | $ | – | |
§ Fair Value of securities on loan | | $ | 350,738 | | | $ | 692,892 | | | $ | 4,786,426 | | | $ | – | | | $ | – | | | $ | – | | | $ | – | | | $ | 691,546 | |
| 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 & Equity Income, Large Cap Value, Investors, 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. |
| | |
| |
| 32 | |
| Madison Funds | April 30, 2018 |
| |
| |
| Statements of Assets and Liabilities as of April 30, 2018 (unaudited) |
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 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 20,889,625 | | | $ | 23,346,357 | | | $ | 157,216,828 | | | $ | 121,316,728 | | | $ | 108,970,399 | | | $ | 98,854,879 | | | $ | 295,314,197 | | | $ | 348,751,470 | | | $ | 89,599,155 | | | $ | 26,539,981 | | |
| | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | |
| | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | |
| | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 47 | | | | 7,685 | | |
| | 43,686 | | | | – | | | | 163,821 | | | | – | | | | 353,201 | | | | – | | | | 337,572 | | | | – | | | | 402,822 | | | | 116,586 | | |
| | 5 | | | | 860 | | | | 68,105 | | | | 1,115,802 | | | | 239,181 | | | | 3,879 | | | | 67,638 | | | | 68,807 | | | | 1,381 | | | | 1,948 | | |
| | 191,938 | | | | 327,458 | | | | 611,443 | | | | 99,896 | | | | 196,162 | | | | 128,676 | | | | 344,231 | | | | 98,743 | | | | 70,328 | | | | 170,842 | | |
| | – | | | | – | | | | – | | | | – | | | | 13,728 | | | | – | | | | – | | | | – | | | | – | | | | – | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 21,125,254 | | | | 23,674,675 | | | | 158,060,197 | | | | 122,532,426 | | | | 109,772,671 | | | | 98,987,434 | | | | 296,063,638 | | | | 348,919,020 | | | | 90,073,733 | | | | 26,837,042 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | – | | | | – | | | | – | | | | – | | | | – | | | | 444,240 | | | | 7,672,034 | | | | 1,889,808 | | | | 374,955 | | | | 124,674 | | |
| | 67 | | | | 21,314 | | | | 67,362 | | | | 223,531 | | | | 30,032 | | | | 6,375 | | | | 115,444 | | | | 146,889 | | | | 16,356 | | | | 652 | | |
| | – | | | | 1,932,803 | | | | 222,950 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 1,563,993 | | | | 408,539 | | |
| | 6,972 | | | | 9,905 | | | | 84,725 | | | | 84,652 | | | | 68,639 | | | | 43,463 | | | | 179,626 | | | | 214,477 | | | | 74,315 | | | | 23,009 | | |
| | 4,358 | | | | 3,602 | | | | 26,069 | | | | 14,659 | | | | 32,030 | | | | 28,447 | | | | 46,971 | | | | 72,259 | | | | 18,578 | | | | 6,575 | | |
| | – | | | | 806 | | | | 7,081 | | | | – | | | | – | | | | 1,923 | | | | – | | | | 1,396 | | | | 227 | | | | 649 | | |
| | – | | | | – | | | | 9,236 | | | | 5,866 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | |
| | – | | | | 4,311 | | | | 35,851 | | | | 5,273 | | | | – | | | | 14,660 | | | | 15,643 | | | | 12,572 | | | | 810 | | | | 4,427 | | |
| | 52,088 | | | | 3,258 | | | | 1,215 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | |
| | – | | | | – | | | | – | | | | 2,178,521 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 63,485 | | | | 1,975,999 | | | | 454,489 | | | | 2,512,502 | | | | 130,701 | | | | 539,108 | | | | 8,029,718 | | | | 2,337,401 | | | | 2,049,234 | | | | 568,525 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 21,061,769 | | | $ | 21,698,676 | | | $ | 157,605,708 | | | $ | 120,019,924 | | | $ | 109,641,970 | | | $ | 98,448,326 | | | $ | 288,033,920 | | | $ | 346,581,619 | | | $ | 88,024,499 | | | $ | 26,268,517 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 21,243,405 | | | $ | 23,131,056 | | | $ | 125,913,631 | | | $ | 130,023,610 | | | $ | 87,486,856 | | | $ | 76,973,480 | | | $ | 196,644,714 | | | $ | 215,434,353 | | | $ | 70,704,257 | | | $ | 19,902,239 | | |
| | 2,959 | | | | 5,126 | | | | (54,987 | ) | | | (1,713,005 | ) | | | 127,282 | | | | 283,139 | | | | 655,406 | | | | (1,019,880 | ) | | | 65,957 | | | | 125,432 | | |
| | 18,301 | | | | (1,388,516 | ) | | | 7,763,076 | | | | 1,539,232 | | | | 6,556,309 | | | | 3,938,538 | | | | 18,439,188 | | | | 13,050,201 | | | | 1,355,768 | | | | (616,266 | ) | |
| | (202,896 | ) | | | (48,990 | ) | | | 23,983,988 | | | | (9,829,913 | ) | | | 15,471,523 | | | | 17,253,169 | | | | 72,294,612 | | | | 119,116,945 | | | | 15,898,517 | | | | 6,857,112 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 21,061,769 | | | $ | 21,698,676 | | | $ | 157,605,708 | | | $ | 120,019,924 | | | $ | 109,641,970 | | | $ | 98,448,326 | | | $ | 288,033,920 | | | $ | 346,581,619 | | | $ | 88,024,499 | | | $ | 26,268,517 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | $ | 19,637,242 | | | $ | 131,369,419 | | | $ | 16,108,639 | | | | | | | $ | 69,056,363 | | | $ | 75,969,303 | | | $ | 58,470,611 | | | $ | 3,545,471 | | | $ | 20,364,026 | | |
| | | | | | 3,289,376 | | | | 8,414,784 | | | | 1,834,436 | | | | | | | | 4,659,261 | | | | 3,381,696 | | | | 6,247,105 | | | | 227,218 | | | | 1,425,789 | | |
| | | | | $ | 5.97 | | | $ | 15.61 | | | $ | 8.78 | | | | | | | $ | 14.82 | | | $ | 22.46 | | | $ | 9.36 | | | $ | 15.60 | | | $ | 14.28 | | |
| | | | | | 0.28 | | | | 0.95 | | | | 0.54 | | | | | | | | 0.90 | | | | 1.37 | | | | 0.57 | | | | 0.95 | | | | 0.87 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | $ | 6.25 | | | $ | 16.56 | | | $ | 9.32 | | | | | | | $ | 15.72 | | | $ | 23.83 | | | | 9.93 | | | $ | 16.55 | | | $ | 15.15 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | $ | 1,281,694 | | | $ | 11,345,818 | | | | | | | | | | | $ | 3,111,904 | | | | | | | $ | 2,240,931 | | | $ | 363,961 | | | $ | 1,043,856 | | |
| | | | | | 208,617 | | | | 722,027 | | | | | | | | | | | | 215,471 | | | | | | | | 291,789 | | | | 24,945 | | | | 74,891 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | $ | 6.14 | | | $ | 15.71 | | | | | | | | | | | $ | 14.44 | | | | | | | $ | 7.68 | | | $ | 14.59 | | | $ | 13.94 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | $ | 14,890,471 | | | $ | 9,493,820 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | 948,052 | | | | 1,139,412 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | $ | 15.71 | | | $ | 8.33 | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 21,061,769 | | | $ | 779,740 | | | | | | | $ | 91,810,873 | | | $ | 109,641,970 | | | $ | 26,280,059 | | | $ | 205,825,737 | | | $ | 273,935,460 | | | $ | 84,115,067 | | | $ | 4,860,635 | | |
| | 1,898,178 | | | | 133,274 | | | | | | | | 10,227,361 | | | | 4,240,126 | | | | 1,774,216 | | | | 9,146,537 | | | | 28,005,346 | | | | 5,375,191 | | | | 339,847 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 11.10 | | | $ | 5.85 | | | | | | | $ | 8.98 | | | $ | 25.86 | | | $ | 14.81 | | | $ | 22.50 | | | $ | 9.78 | | | $ | 15.65 | | | $ | 14.30 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | $ | 2,606,592 | | | | | | | | | | | $ | 6,238,880 | | | $ | 11,934,617 | | | | | | | | | | |
| | | | | | | | | | | | | | 287,899 | | | | | | | | | | | | 275,716 | | | | 1,196,466 | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | $ | 9.05 | | | | | | | | | | | $ | 22.63 | | | $ | 9.97 | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 21,092,521 | | | $ | 23,395,347 | | | $ | 133,232,839 | | | $ | 131,547,116 | | | $ | 93,498,876 | | | $ | 81,601,710 | | | $ | 223,019,585 | | | $ | 229,634,525 | | | $ | 73,699,397 | | | $ | 19,678,021 | | |
| $ | – | | | $ | – | | | $ | – | | | $ | – | | | $ | – | | | $ | – | | | $ | – | | | $ | – | | | $ | – | | | $ | – | | |
| $ | – | | | | 1,895,228 | | | | 218,096 | | | $ | – | | | $ | – | | | $ | – | | | $ | – | | | $ | – | | | $ | 1,531,282 | | | $ | 380,896 | | |
| See accompanying Notes to Financial Statements. |
| | |
| |
| | 33 |
| Madison Funds | April 30, 2018 |
| |
| |
| Statements of Operations for the Year Ended April 30, 2018 (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 | | $ | 11,328 | | | $ | 24,691 | | | $ | 11,960 | | | $ | 97,318 | | | $ | 315,381 | | | $ | 363,568 | | | $ | 990,230 | | | $ | 2,998,611 | |
| Dividends | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Unaffiliated issuers | | | 495,657 | | | | 919,947 | | | | 356,051 | | | | – | | | | – | | | | – | | | | – | | | | – | |
Affiliated issuers1 | | | 316,532 | | | | 511,575 | | | | 209,095 | | | | – | | | | – | | | | – | | | | – | | | | – | |
Less: Foreign taxes withheld/reclaimed | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Income from securities lending | | | 326 | | | | 687 | | | | 396 | | | | – | | | | – | | | | – | | | | – | | | | 3 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total investment income | | | 823,843 | | | | 1,456,900 | | | | 577,502 | | | | 97,318 | | | | 315,381 | | | | 363,568 | | | | 990,230 | | | | 2,998,614 | |
| Expenses:2 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Advisory agreement fees | | | 72,706 | | | | 146,270 | | | | 66,297 | | | | 29,311 | | | | 53,697 | | | | 48,490 | | | | 146,458 | | | | 495,680 | |
| Service agreement fees | | | 90,882 | | | | 182,837 | | | | 82,871 | | | | 10,954 | | | | 37,588 | | | | 42,429 | | | | 92,757 | | | | 147,583 | |
| Distribution fees - Class B | | | 28,614 | | | | 82,230 | | | | 37,708 | | | | 743 | | | | – | | | | – | | | | – | | | | 7,036 | |
| Distribution fees - Class C | | | 78,287 | | | | 36,129 | | | | 8,689 | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Shareholder service fees - Class A | | | 55,206 | | | | 143,254 | | | | 67,382 | | | | – | | | | – | | | | – | | | | – | | | | 40,476 | |
| Shareholder service fees - Class B | | | 9,524 | | | | 27,381 | | | | 12,529 | | | | – | | | | – | | | | – | | | | – | | | | 2,344 | |
| Shareholder service fees - Class C | | | 26,069 | | | | 12,043 | | | | 2,896 | | | | – | | | | – | | | | – | | | | – | | | | – | |
| Other expenses | | | 124 | | | | 250 | | | | 112 | | | | 26 | | | | 37 | | | | 41 | | | | 169 | | | | 1,086 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses before reimbursement/waiver | | | 361,412 | | | | 630,394 | | | | 278,484 | | | | 41,034 | | | | 91,322 | | | | 90,960 | | | | 239,384 | | | | 694,205 | |
Less reimbursement/waiver3 | | | – | | | | – | | | | – | | | | (179 | ) | | | – | | | | – | | | | – | | | | – | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total expenses net of reimbursement | | | 361,412 | | | | 630,394 | | | | 278,484 | | | | 40,855 | | | | 91,322 | | | | 90,960 | | | | 239,384 | | | | 694,205 | |
| Net Investment Income (Loss) | | | 462,431 | | | | 826,506 | | | | 299,018 | | | | 56,463 | | | | 224,059 | | | | 272,608 | | | | 750,846 | | | | 2,304,409 | |
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 purchased | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 34,677 | |
Options written | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | (37,589 | ) |
Unaffiliated issuers | | | 1,246,757 | | | | 5,035,130 | | | | 2,539,905 | | | | (60 | ) | | | (4,345 | ) | | | 41,438 | | | | (114,031 | ) | | | 140,772 | |
Affiliated issuers1 | | | 130,371 | | | | 212,858 | | | | 208,810 | | | | – | | | | – | | | | – | | | | – | | | | – | |
Capital gain distributions received from underlying funds | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Affiliated issuers1 | | | 394,683 | | | | 1,473,295 | | | | 843,209 | | | | – | | | | – | | | | – | | | | – | | | | – | |
Net change in unrealized appreciation (depreciation) on investments (including net unrealized appreciation (depreciation) on foreign currency related transactions) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Options purchased | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 10,865 | |
Options written | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | (7,885 | ) |
Unaffiliated issuers | | | (1,219,030 | ) | | | (4,137,915 | ) | | | (1,840,528 | ) | | | – | | | | (546,408 | ) | | | (781,230 | ) | | | (2,101,053 | ) | | | (6,364,261 | ) |
Affiliated issuers1 | | | (1,041,200 | ) | | | (1,736,480 | ) | | | (857,721 | ) | | | – | | | | – | | | | – | | | | – | | | | – | |
Net Realized and Unrealized Gain (Loss) on Investments and Option Transactions | | | (488,419 | ) | | | 846,888 | | | | 893,675 | | | | (60 | ) | | | (550,753 | ) | | | (739,792 | ) | | | (2,215,084 | ) | | | (6,223,421 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Increase (Decrease) in Net Assets from Operations | | $ | (25,988 | ) | | $ | 1,673,394 | | | $ | 1,192,693 | | | $ | 56,403 | | | $ | (326,694 | ) | | $ | (467,184 | ) | | $ | (1,464,238 | ) | | $ | (3,919,012 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| 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. |
| | |
| |
| 34 | |
| Madison Funds | April 30, 2018 |
| |
| |
| Statements of Operations for the Year Ended April 30, 2018 (unaudited) |
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 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | 380,797 | | | $ | 663,981 | | | $ | 874,614 | | | $ | 121,711 | | | $ | 12,630 | | | $ | 12,977 | | | $ | 97,093 | | | $ | 145,572 | | | $ | 22,934 | | | $ | 4,336 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | – | | | | 1,097 | | | | 1,494,453 | | | | 945,096 | | | | 1,608,632 | | | | 953,571 | | | | 2,271,302 | | | | 1,400,800 | | | | 770,803 | | | | 389,098 | | |
| | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | |
| | – | | | | – | | | | (24,443 | ) | | | (1,462 | ) | | | (27,180 | ) | | | (14,843 | ) | | | (833 | ) | | | (14,642 | ) | | | (3,834 | ) | | | (39,139 | ) | |
| | – | | | | 133 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | 74 | | | | – | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 380,797 | | | | 665,211 | | | | 2,344,624 | | | | 1,065,345 | | | | 1,594,082 | | | | 951,705 | | | | 2,367,562 | | | | 1,531,730 | | | | 789,977 | | | | 354,295 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 42,796 | | | | 62,103 | | | | 531,110 | | | | 545,397 | | | | 422,904 | | | | 259,083 | | | | 1,139,020 | | | | 1,304,655 | | | | 465,237 | | | | 153,609 | | |
| | 26,747 | | | | 22,583 | | | | 163,419 | | | | 94,521 | | | | 197,355 | | | | 169,582 | | | | 297,620 | | | | 440,448 | | | | 116,309 | | | | 43,888 | | |
| | – | | | | 5,294 | | | | 45,547 | | | | – | | | | – | | | | 12,140 | | | | – | | | | 9,075 | | | | 1,475 | | | | 4,201 | | |
| | – | | | | – | | | | 57,044 | | | | 42,418 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | |
| | – | | | | 25,402 | | | | 169,758 | | | | 20,636 | | | | – | | | | 86,429 | | | | 97,822 | | | | 74,862 | | | | 4,715 | | | | 25,943 | | |
| | – | | | | 1,765 | | | | 15,148 | | | | – | | | | – | | | | 4,035 | | | | – | | | | 3,025 | | | | 492 | | | | 1,400 | | |
| | – | | | | – | | | | 19,010 | | | | 14,139 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | |
| | 37 | | | | 39 | | | | 282 | | | | 218 | | | | 188 | | | | 157 | | | | 528 | | | | 592 | | | | 165 | | | | 91 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 69,580 | | | | 117,186 | | | | 1,001,318 | | | | 717,329 | | | | 620,447 | | | | 531,426 | | | | 1,534,990 | | | | 1,832,657 | | | | 588,393 | | | | 229,132 | | |
| | – | | | | – | | | | – | | | | – | | | | (84,581 | ) | | | – | | | | – | | | | – | | | | – | | | | – | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 69,580 | | | | 117,186 | | | | 1,001,318 | | | | 717,329 | | | | 535,866 | | | | 531,426 | | | | 1,534,990 | | | | 1,832,657 | | | | 588,393 | | | | 229,132 | | |
| | 311,217 | | | | 548,025 | | | | 1,343,306 | | | | 348,016 | | | | 1,058,216 | | | | 420,279 | | | | 832,572 | | | | (300,927 | ) | | | 201,584 | | | | 125,163 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | – | | | | – | | | | – | | | | 3,616,821 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | |
| | – | | | | – | | | | – | | | | (1,414,406 | ) | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | |
| | 18,301 | | | | (60,548 | ) | | | 7,913,467 | | | | 1,659,493 | | | | 6,595,133 | | | | 4,012,509 | | | | 18,649,298 | | | | 13,056,823 | | | | 1,849,274 | | | | 2,428,196 | | |
| | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | |
| | – | | | | – | | | | – | | | | 977,153 | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | |
| | (893,882 | ) | | | (764,384 | ) | | | (8,531,197 | ) | | | (409,547 | ) | | | (5,894,211 | ) | | | 865,019 | | | | (11,847,012 | ) | | | 142,017 | | | | (2,353,973 | ) | | | (1,613,760 | ) | |
| | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | |
| | (875,581 | ) | | | (824,932 | ) | | | (617,730 | ) | | | 4,429,514 | | | | 700,922 | | | | 4,877,528 | | | | 6,802,286 | | | | 13,198,840 | | | | (504,699 | ) | | | 814,436 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| $ | (564,364 | ) | | $ | (276,907 | ) | | $ | 725,576 | | | $ | 4,777,530 | | | $ | 1,759,138 | | | $ | 5,297,807 | | | $ | 7,634,858 | | | $ | 12,897,913 | | | $ | (303,115 | ) | | $ | 939,599 | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| See accompanying Notes to Financial Statements. |
| | |
| |
| | 35 |
| Madison Funds | April 30, 2018 |
| |
| |
| Statements of Changes in Net Assets |
| | | Conservative Allocation Fund | | Moderate Allocation Fund | | Aggressive Allocation Fund | | Government Money Market Fund |
| | | | | | | | | | | | | |
| | | Six-Months
Ended
April 30, 2018
(unaudited) | | Year Ended
October 31,
2017 | | Six-Months
Ended
April 30, 2018
(unaudited) | | Year Ended
October 31,
2017 | | Six-Months
Ended
April 30, 2018
(unaudited) | | Year Ended
October 31,
2017 | | Six-Months
Ended
April 30, 2018
(unaudited) | | Year Ended
October 31,
2017 |
| | | | | | | | | | | | | | | | | |
| Net Assets at beginning of period | | $ | 74,084,303 | | | $ | 73,151,961 | | | $ | 148,311,927 | | | $ | 138,815,574 | | | $ | 65,553,699 | | | $ | 58,816,082 | | | $ | 15,186,479 | | | $ | 18,894,157 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Increase (decrease) in net assets from operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 462,431 | | | | 851,643 | | | | 826,506 | | | | 1,533,008 | | | | 299,018 | | | | 552,449 | | | | 56,463 | | | | 32,704 | |
Net realized gain (loss) | | | 1,771,811 | | | | 1,993,152 | | | | 6,721,283 | | | | 5,919,183 | | | | 3,591,924 | | | | 3,353,784 | | | | (60 | ) | | | (162 | ) |
Net change in unrealized appreciation (depreciation) | | | (2,260,230 | ) | | | 2,730,020 | | | | (5,874,395 | ) | | | 11,025,759 | | | | (2,698,249 | ) | | | 6,630,295 | | | | – | | | | – | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in net assets from operations | | | (25,988 | ) | | | 5,574,815 | | | | 1,673,394 | | | | 18,477,950 | | | | 1,192,693 | | | | 10,536,528 | | | | 56,403 | | | | 32,542 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Distributions to shareholders from: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | (551,927 | ) | | | (750,763 | ) | | | (1,607,056 | ) | | | (1,426,923 | ) | | | (624,221 | ) | | | (518,663 | ) | | | (56,352 | ) | | | (32,526 | ) |
Class B | | | (62,800 | ) | | | (74,411 | ) | | | (142,916 | ) | | | (153,400 | ) | | | (43,255 | ) | | | (61,878 | ) | | | (111 | ) | | | (33 | ) |
Class C | | | (172,579 | ) | | | (170,190 | ) | | | (60,907 | ) | | | (56,550 | ) | | | (9,688 | ) | | | (14,374 | ) | | | | | | | | |
Net realized gains | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | (1,109,791 | ) | | | (615,779 | ) | | | (4,153,029 | ) | | | (2,986,528 | ) | | | (2,403,525 | ) | | | (1,202,389 | ) | | | – | | | | – | |
Class B | | | (194,711 | ) | | | (129,617 | ) | | | (819,442 | ) | | | (719,238 | ) | | | (471,956 | ) | | | (283,060 | ) | | | – | | | | – | |
Class C | | | (517,061 | ) | | | (280,282 | ) | | | (349,223 | ) | | | (265,144 | ) | | | (105,709 | ) | | | (65,754 | ) | | | – | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (2,608,869 | ) | | | (2,021,042 | ) | | | (7,132,573 | ) | | | (5,607,783 | ) | | | (3,658,354 | ) | | | (2,146,118 | ) | | | (56,463 | ) | | | (32,559 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Capital Stock transactions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 3,115,965 | | | | 6,334,759 | | | | 5,804,328 | | | | 11,156,898 | | | | 2,966,867 | | | | 5,057,797 | | | | 3,339,073 | | | | 3,613,727 | |
Issued to shareholders in reinvestment of distributions | | | 1,658,386 | | | | 1,365,548 | | | | 5,754,011 | | | | 4,407,213 | | | | 3,025,407 | | | | 1,720,248 | | | | 55,063 | | | | 32,084 | |
Shares redeemed | | | (4,294,741 | ) | | | (8,571,911 | ) | | | (10,027,755 | ) | | | (14,187,211 | ) | | | (3,137,651 | ) | | | (5,984,943 | ) | | | (3,695,126 | ) | | | (6,969,395 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) from capital stock transactions | | | 479,610 | | | | (871,604 | ) | | | 1,530,584 | | | | 1,376,900 | | | | 2,854,623 | | | | 793,102 | | | | (300,990 | ) | | | (3,323,584 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Class B Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | – | | | | 382,152 | | | | 240,439 | | | | 795,931 | | | | 114,116 | | | | 253,099 | | | | 63,094 | | | | 263,158 | |
Issued to shareholders in reinvestment of distributions | | | 257,506 | | | | 204,019 | | | | 961,142 | | | | 871,907 | | | | 515,206 | | | | 344,880 | | | | 111 | | | | 32 | |
Shares redeemed | | | (999,508 | ) | | | (2,062,514 | ) | | | (3,162,331 | ) | | | (6,124,594 | ) | | | (1,253,083 | ) | | | (2,634,850 | ) | | | (93,662 | ) | | | (647,267 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net decrease from capital stock transactions | | | (742,002 | ) | | | (1,476,343 | ) | | | (1,960,750 | ) | | | (4,456,756 | ) | | | (623,761 | ) | | | (2,036,871 | ) | | | (30,457 | ) | | | (384,077 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 809,269 | | | | 1,686,163 | | | | 316,725 | | | | 862,587 | | | | 146,643 | | | | 243,622 | | | | | | | | | |
Issued to shareholders in reinvestment of distributions | | | 689,505 | | | | 450,472 | | | | 410,102 | | | | 321,694 | | | | 101,349 | | | | 72,103 | | | | | | | | | |
Shares redeemed | | | (915,741 | ) | | | (2,410,119 | ) | | | (506,219 | ) | | | (1,478,239 | ) | | | (123,501 | ) | | | (724,749 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) from capital stock transactions | | | 583,033 | | | | (273,484 | ) | | | 220,608 | | | | (293,958 | ) | | | 124,491 | | | | (409,024 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total net increase (decrease) from capital stock transactions | | | 320,641 | | | | (2,621,431 | ) | | | (209,558 | ) | | | (3,373,814 | ) | | | 2,355,353 | | | | (1,652,793 | ) | | | (331,447 | ) | | | (3,707,661 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total increase (decrease) in net assets | | | (2,314,216 | ) | | | 932,342 | | | | (5,668,737 | ) | | | 9,496,353 | | | | (110,308 | ) | | | 6,737,617 | | | | (331,507 | ) | | | (3,707,678 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period | | $ | 71,770,087 | | | $ | 74,084,303 | | | $ | 142,643,190 | | | $ | 148,311,927 | | | $ | 65,443,391 | | | $ | 65,553,699 | | | $ | 14,854,972 | | | $ | 15,186,479 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Undistributed net investment income (loss) included in net assets | | $ | (310,556 | ) | | $ | 14,319 | | | $ | 63,444 | | | $ | 1,047,817 | | | $ | (42,003 | ) | | $ | 336,143 | | | $ | 145 | | | $ | 145 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Capital Share transactions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 287,610 | | | | 598,729 | | | | 484,942 | | | | 973,958 | | | | 236,945 | | | | 431,926 | | | | 3,339,073 | | | | 3,613,727 | |
Issued to shareholders in reinvestment of distributions | | | 154,155 | | | | 131,318 | | | | 485,161 | | | | 403,961 | | | | 245,370 | | | | 155,538 | | | | 55,063 | | | | 32,084 | |
Shares redeemed | | | (396,514 | ) | | | (811,088 | ) | | | (838,872 | ) | | | (1,234,277 | ) | | | (251,437 | ) | | | (508,168 | ) | | | (3,695,126 | ) | | | (6,969,395 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in shares outstanding | | | 45,251 | | | | (81,041 | ) | | | 131,231 | | | | 143,642 | | | | 230,878 | | | | 79,296 | | | | (300,990 | ) | | | (3,323,584 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Class B Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | – | | | | 36,186 | | | | 20,088 | | | | 71,031 | | | | 9,169 | | | | 22,954 | | | | 63,093 | | | | 263,158 | |
Issued to shareholders in reinvestment of distributions | | | 23,717 | | | | 19,561 | | | | 81,522 | | | | 80,360 | | | | 42,791 | | | | 31,905 | | | | 111 | | | | 32 | |
Shares redeemed | | | (91,963 | ) | | | (193,083 | ) | | | (266,691 | ) | | | (538,097 | ) | | | (102,955 | ) | | | (232,867 | ) | | | (93,662 | ) | | | (647,266 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net decrease in shares outstanding | | | (68,246 | ) | | | (137,336 | ) | | | (165,081 | ) | | | (386,706 | ) | | | (50,995 | ) | | | (178,008 | ) | | | (30,458 | ) | | | (384,076 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 74,379 | | | | 157,597 | | | | 26,418 | | | | 76,241 | | | | 11,974 | | | | 21,339 | | | | | | | | | |
Issued to shareholders in reinvestment of distributions | | | 63,464 | | | | 43,154 | | | | 34,754 | | | | 29,622 | | | | 8,411 | | | | 6,663 | | | | | | | | | |
Shares redeemed | | | (84,287 | ) | | | (226,492 | ) | | | (42,466 | ) | | | (131,330 | ) | | | (10,054 | ) | | | (64,276 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in shares outstanding | | | 53,556 | | | | (25,741 | ) | | | 18,706 | | | | (25,467 | ) | | | 10,331 | | | | (36,274 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| See accompanying Notes to Financial Statements. |
| | |
| |
| 36 | |
| Madison Funds | April 30, 2018 |
| |
| |
| 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, 2018
(unaudited) | | Year Ended
October 31,
2017 | | Six-Months
Ended
April 30, 2018
(unaudited) | | Year Ended
October 31,
2017 | | Six-Months
Ended
April 30, 2018
(unaudited) | | Year Ended
October 31,
2017 | | Six-Months
Ended
April 30, 2018
(unaudited) | | Year Ended
October 31,
2017 |
| | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at beginning of period | | $ | 21,866,239 | | | $ | 22,350,143 | | | $ | 25,293,667 | | | $ | 27,332,854 | | | $ | 100,536,237 | | | $ | 105,806,832 | | | $ | 207,713,774 | | | $ | 216,822,576 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Increase (decrease) in net assets from operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 224,059 | | | | 451,523 | | | | 272,608 | | | | 596,776 | | | | 750,846 | | | | 1,338,288 | | | | 2,304,409 | | | | 4,643,626 | |
Net realized gain (loss) | | | (4,345 | ) | | | (17,283 | ) | | | 41,438 | | | | 76,845 | | | | (114,031 | ) | | | (42,572 | ) | | | 137,860 | | | | 514,459 | |
Net change in unrealized depreciation | | | (546,408 | ) | | | (275,965 | ) | | | (781,230 | ) | | | (521,824 | ) | | | (2,101,053 | ) | | | (1,136,642 | ) | | | (6,361,281 | ) | | | (2,655,727 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in net assets from operations | | | (326,694 | ) | | | 158,275 | | | | (467,184 | ) | | | 151,797 | | | | (1,464,238 | ) | | | 159,074 | | | | (3,919,012 | ) | | | 2,502,358 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Distributions to shareholders from: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | (374,041 | ) | | | (749,521 | ) |
Class B | | | | | | | | | | | | | | | | | | | | | | | | | | | (14,640 | ) | | | (32,830 | ) |
Class Y | | | (224,004 | ) | | | (451,544 | ) | | | (272,620 | ) | | | (596,927 | ) | | | (713,821 | ) | | | (1,315,129 | ) | | | (2,080,002 | ) | | | (4,265,108 | ) |
Class R6 | | | | | | | | | | | | | | | | | | | | | | | | | | | (21,877 | ) | | | (44,661 | ) |
Net realized gains | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | | | | | | | | | | | | | | | | | (10,701 | ) | | | (175,602 | ) |
Class B | | | | | | | | | | | | | | | | | | | | | | | | | | | (622 | ) | | | (13,156 | ) |
Class Y | | | – | | | | (36,276 | ) | | | (76,814 | ) | | | (181,117 | ) | | | – | | | | (124,222 | ) | | | (53,411 | ) | | | (917,720 | ) |
Class R6 | | | | | | | | | | | | | | | | | | | | | | | | | | | (575 | ) | | | (9,658 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (224,004 | ) | | | (487,820 | ) | | | (349,434 | ) | | | (778,044 | ) | | | (713,821 | ) | | | (1,439,351 | ) | | | (2,555,869 | ) | | | (6,208,256 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Capital Stock transactions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | | | | | | | | | | | | | | | | | | | | | | | | | 863,171 | | | | 3,389,344 | |
Issued to shareholders in reinvestment of distributions | | | | | | | | | | | | | | | | | | | | | | | | | | | 382,442 | | | | 920,189 | |
Shares redeemed | | | | | | | | | | | | | | | | | | | | | | | | | | | (2,713,173 | ) | | | (4,318,859 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net decrease from capital stock transactions | | | | | | | | | | | | | | | | | | | | | | | | | | | (1,467,560 | ) | | | (9,326 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class B Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | | | | | | | | | | | | | | | | | | | | | | | | | 5,263 | | | | 92,099 | |
Issued to shareholders in reinvestment of distributions | | | | | | | | | | | | | | | | | | | | | | | | | | | 15,262 | | | | 45,901 | |
Shares redeemed | | | | | | | | | | | | | | | | | | | | | | | | | | | (220,110 | ) | | | (665,241 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net decrease from capital stock transactions | | | | | | | | | | | | | | | | | | | | | | | | | | | (199,585 | ) | | | (527,241 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 176,878 | | | | 481,709 | | | | 203,497 | | | | 456,854 | | | | 9,559,945 | | | | 21,374,350 | | | | 2,476,575 | | | | 7,419,347 | |
Issued to shareholders in reinvestment of distributions | | | 218,027 | | | | 474,510 | | | | 310,764 | | | | 698,613 | | | | 661,632 | | | | 1,351,692 | | | | 495,123 | | | | 1,228,039 | |
Shares redeemed | | | (279,160 | ) | | | (1,110,578 | ) | | | (1,272,592 | ) | | | (2,568,407 | ) | | | (13,787,737 | ) | | | (26,716,360 | ) | | | (12,628,946 | ) | | | (13,469,839 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) from capital stock transactions | | | 115,745 | | | | (154,359 | ) | | | (758,331 | ) | | | (1,412,940 | ) | | | (3,566,160 | ) | | | (3,990,318 | ) | | | (9,657,248 | ) | | | (4,822,453 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Class R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | | | | | | | | | | | | | | | | | | | | | | | | | 195,262 | | | | 164,741 | |
Issued to shareholders in reinvestment of distributions | | | | | | | | | | | | | | | | | | | | | | | | | | | 22,452 | | | | 54,319 | |
Shares redeemed | | | | | | | | | | | | | | | | | | | | | | | | | | | (373,872 | ) | | | (262,944 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net decrease from capital stock transactions | | | | | | | | | | | | | | | | | | | | | | | | | | | (156,158 | ) | | | (43,884 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total net increase (decrease) from capital stock transactions | | | 115,745 | | | | (154,359 | ) | | | (758,331 | ) | | | (1,412,940 | ) | | | (3,566,160 | ) | | | (3,990,318 | ) | | | (11,480,551 | ) | | | (5,402,904 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total decrease in net assets | | | (434,953 | ) | | | (483,904 | ) | | | (1,574,949 | ) | | | (2,039,187 | ) | | | (5,744,219 | ) | | | (5,270,595 | ) | | | (17,955,432 | ) | | | (9,108,802 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period | | $ | 21,431,286 | | | $ | 21,866,239 | | | $ | 23,718,718 | | | $ | 25,293,667 | | | $ | 94,792,018 | | | $ | 100,536,237 | | | $ | 189,758,342 | | | $ | 207,713,774 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Undistributed net investment income (loss) included in net assets | | $ | 2,000 | | | $ | 1,945 | | | $ | 2,481 | | | $ | 2,493 | | | $ | 156,067 | | | $ | 119,042 | | | $ | (164,801 | ) | | $ | 21,350 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Capital Share transactions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | | | | | | | | | | | | | | | | | | | | | | | | | 87,005 | | | | 338,890 | |
Issued to shareholders in reinvestment of distributions | | | | | | | | | | | | | | | | | | | | | | | | | | | 38,772 | | | | 92,223 | |
Shares redeemed | | | | | | | | | | | | | | | | | | | | | | | | | | | (274,527 | ) | | | (431,347 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net decrease in shares outstanding | | | | | | | | | | | | | | | | | | | | | | | | | | | (148,750 | ) | | | (234 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class B Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | | | | | | | | | | | | | | | | | | | | | | | | | 525 | | | | 9,163 | |
Issued to shareholders in reinvestment of distributions | | | | | | | | | | | | | | | | | | | | | | | | | | | 1,546 | | | | 4,603 | |
Shares redeemed | | | | | | | | | | | | | | | | | | | | | | | | | | | (22,304 | ) | | | (66,389 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net decrease in shares outstanding | | | | | | | | | | | | | | | | | | | | | | | | | | | (20,233 | ) | | | (52,623 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 15,526 | | | | 41,925 | | | | 19,055 | | | | 42,216 | | | | 884,512 | | | | 1,954,129 | | | | 249,132 | | | | 744,802 | |
Issued to shareholders in reinvestment of distributions | | | 19,287 | | | | 41,472 | | | | 29,203 | | | | 64,789 | | | | 61,342 | | | | 124,008 | | | | 50,369 | | | | 123,469 | |
Shares redeemed | | | (24,621 | ) | | | (96,605 | ) | | | (119,020 | ) | | | (236,695 | ) | | | (1,277,846 | ) | | | (2,443,293 | ) | | | (1,280,720 | ) | | | (1,349,502 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in shares outstanding | | | 10,192 | | | | (13,208 | ) | | | (70,762 | ) | | | (129,690 | ) | | | (331,992 | ) | | | (365,156 | ) | | | (981,219 | ) | | | (481,231 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Class R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | | | | | | | | | | | | | | | | | | | | | | | | | 19,795 | | | | 16,457 | |
Issued to shareholders in reinvestment of distributions | | | | | | | | | | | | | | | | | | | | | | | | | | | 2,271 | | | | 5,436 | |
Shares redeemed | | | | | | | | | | | | | | | | | | | | | | | | | | | (38,038 | ) | | | (26,305 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net decrease in shares outstanding | | | | | | | | | | | | | | | | | | | | | | | | | | | (15,972 | ) | | | (4,412 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| See accompanying Notes to Financial Statements. |
| | |
| |
| | 37 |
| Madison Funds | April 30, 2018 |
| |
| |
| 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, 2018
(unaudited) | | Year
Ended
October 31,
2017 | | Six-Months
Ended
April 30, 2018
(unaudited) | | Year Ended
October 31,
2017 | | Six-Months
Ended
April 30, 2018
(unaudited) | | Year Ended
October 31,
2017 | | Six-Months
Ended
April 30, 2018
(unaudited) | | Year Ended
October 31,
2017 |
| | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at beginning of period | | $ | 21,772,545 | | | $ | 23,845,523 | | | $ | 23,600,011 | | | $ | 23,766,340 | | | $ | 165,668,561 | | | $ | 154,998,713 | | | $ | 128,242,884 | | | $ | 106,122,961 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Increase (decrease) in net assets from operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | 311,217 | | | | 647,408 | | | | 548,025 | | | | 1,109,079 | | | | 1,343,306 | | | | 2,428,432 | | | | 348,016 | | | | 1,279,939 | |
Net realized gain (loss) | | | 18,301 | | | | 178,454 | | | | (60,548 | ) | | | 418,319 | | | | 7,913,467 | | | | 2,631,959 | | | | 3,861,908 | | | | 10,064,878 | |
Net change in unrealized appreciation (depreciation) | | | (893,882 | ) | | | (200,705 | ) | | | (764,384 | ) | | | 219,456 | | | | (8,531,197 | ) | | | 13,666,018 | | | | 567,606 | | | | (4,914,308 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in net assets from operations | | | (564,364 | ) | | | 625,157 | | | | (276,907 | ) | | | 1,746,854 | | | | 725,576 | | | | 18,726,409 | | | | 4,777,530 | | | | 6,430,509 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Distributions to shareholders from: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | – | | | | – | | | | (496,900 | ) | | | (1,001,872 | ) | | | (1,250,235 | ) | | | (2,298,681 | ) | | | (268,658 | ) | | | (787,571 | ) |
Class B | | | – | | | | – | | | | (28,340 | ) | | | (60,236 | ) | | | (65,646 | ) | | | (127,992 | ) | | | – | | | | – | |
Class C | | | – | | | | – | | | | – | | | | – | | | | (82,412 | ) | | | (139,888 | ) | | | (159,928 | ) | | | (625,057 | ) |
Class Y | | | (310,953 | ) | | | (647,595 | ) | | | (22,453 | ) | | | (47,093 | ) | | | – | | | | – | | | | (1,587,747 | ) | | | (3,615,921 | ) |
Class R6 | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | (44,688 | ) | | | (103,532 | ) |
Net realized gains | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | – | | | | – | | | | – | | | | – | | | | (2,066,580 | ) | | | (4,582,932 | ) | | | (548,449 | ) | | | (428,064 | ) |
Class B | | | – | | | | – | | | | – | | | | – | | | | (183,131 | ) | | | (466,920 | ) | | | – | | | | – | |
Class C | | | – | | | | – | | | | – | | | | – | | | | (224,677 | ) | | | (487,580 | ) | | | (422,936 | ) | | | (321,419 | ) |
Class Y | | | (178,435 | ) | | | (87,745 | ) | | | – | | | | – | | | | – | | | | – | | | | (3,086,943 | ) | | | (1,634,708 | ) |
Class R6 | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | (83,972 | ) | | | (76,472 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (489,388 | ) | | | (735,340 | ) | | | (547,693 | ) | | | (1,109,201 | ) | | | (3,872,681 | ) | | | (8,103,993 | ) | | | (6,203,321 | ) | | | (7,592,744 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Capital Stock transactions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | | | | | | | | | 561,723 | | | | 1,472,285 | | | | 5,474,417 | | | | 11,771,897 | | | | 920,881 | | | | 5,133,825 | |
Issued to shareholders in reinvestment of distributions | | | | | | | | | | | 481,812 | | | | 973,636 | | | | 3,280,902 | | | | 6,835,767 | | | | 783,464 | | | | 1,167,788 | |
Shares redeemed | | | | | | | | | | | (1,959,808 | ) | | | (3,117,167 | ) | | | (12,636,062 | ) | | | (17,754,136 | ) | | | (2,199,432 | ) | | | (7,636,091 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) from capital stock transactions | | | | | | | | | | | (916,273 | ) | | | (671,246 | ) | | | (3,880,743 | ) | | | 853,528 | | | | (495,087 | ) | | | (1,334,478 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class B Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | | | | | | | | | – | | | | 4,867 | | | | 52,159 | | | | 523,653 | | | | | | | | | |
Issued to shareholders in reinvestment of distributions | | | | | | | | | | | 25,203 | | | | 53,736 | | | | 248,777 | | | | 594,911 | | | | | | | | | |
Shares redeemed | | | | | | | | | | | (197,778 | ) | | | (250,246 | ) | | | (1,428,234 | ) | | | (2,565,093 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net decrease from capital stock transactions | | | | | | | | | | | (172,575 | ) | | | (191,643 | ) | | | (1,127,298 | ) | | | (1,446,529 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | | | | | | | | | | | | | | | | | 496,902 | | | | 1,669,969 | | | | 525,913 | | | | 1,757,805 | |
Issued to shareholders in reinvestment of distributions | | | | | | | | | | | | | | | | | | | 307,089 | | | | 627,468 | | | | 510,619 | | | | 691,489 | |
Shares redeemed | | | | | | | | | | | | | | | | | | | (711,698 | ) | | | (1,657,004 | ) | | | (4,726,499 | ) | | | (2,422,068 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) from capital stock transactions | | | | | | | | | | | | | | | | | | | 92,293 | | | | 640,433 | | | | (3,689,967 | ) | | | 27,226 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 335,277 | | | | 127,791 | | | | 550,955 | | | | 4,028,802 | | | | | | | | | | | | 31,525,422 | | | | 57,926,184 | |
Issued to shareholders in reinvestment of distributions | | | 31,814 | | | | 37,214 | | | | 22,453 | | | | 47,093 | | | | | | | | | | | | 4,623,567 | | | | 5,179,434 | |
Shares redeemed | | | (24,115 | ) | | | (2,127,800 | ) | | | (561,295 | ) | | | (4,016,988 | ) | | | | | | | | | | | (38,863,855 | ) | | | (37,931,562 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) from capital stock transactions | | | 342,976 | | | | (1,962,795 | ) | | | 12,113 | | | | 58,907 | | | | | | | | | | | | (2,714,866 | ) | | | 25,174,056 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | | | | | | | | | | | | | | | | | | | | | | | | | 224,556 | | | | 635,052 | |
Issued to shareholders in reinvestment of distributions | | | | | | | | | | | | | | | | | | | | | | | | | | | 128,660 | | | | 180,004 | |
Shares redeemed | | | | | | | | | | | | | | | | | | | | | | | | | | | (250,465 | ) | | | (1,399,702 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) from capital stock transactions | | | | | | | | | | | | | | | | | | | | | | | | | | | 102,751 | | | | (584,646 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total net increase (decrease) from capital stock transactions | | | 342,976 | | | | (1,962,795 | ) | | | (1,076,735 | ) | | | (803,982 | ) | | | (4,915,748 | ) | | | 47,432 | | | | (6,797,169 | ) | | | 23,282,158 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total increase (decrease) in net assets | | | (710,776 | ) | | | (2,072,978 | ) | | | (1,901,335 | ) | | | (166,329 | ) | | | (8,062,853 | ) | | | 10,669,848 | | | | (8,222,960 | ) | | | 22,119,923 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period | | $ | 21,061,769 | | | $ | 21,772,545 | | | $ | 21,698,676 | | | $ | 23,600,011 | | | $ | 157,605,708 | | | $ | 165,668,561 | | | $ | 120,019,924 | | | $ | 128,242,884 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Undistributed net investment income (loss) included in net assets | | $ | 2,959 | | | $ | 2,695 | | | $ | 5,126 | | | $ | 4,794 | | | $ | (54,987 | ) | | $ | – | | | $ | (1,713,005 | ) | | $ | – | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Capital Share transactions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | | | | | | | | | 92,125 | | | | 240,145 | | | | 341,075 | | | | 769,800 | | | | 101,945 | | | | 566,341 | |
Issued to shareholders in reinvestment of distributions | | | | | | | | | | | 79,330 | | | | 158,841 | | | | 204,098 | | | | 457,403 | | | | 88,887 | | | | 129,789 | |
Shares redeemed | | | | | | | | | | | (321,157 | ) | | | (509,309 | ) | | | (782,629 | ) | | | (1,167,193 | ) | | | (245,962 | ) | | | (845,787 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in shares outstanding | | | | | | | | | | | (149,702 | ) | | | (110,323 | ) | | | (237,456 | ) | | | 60,010 | | | | (55,130 | ) | | | (149,657 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class B Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | | | | | | | | | – | | | | 788 | | | | 3,131 | | | | 34,608 | | | | | | | | | |
Issued to shareholders in reinvestment of distributions | | | | | | | | | | | 4,031 | | | | 8,528 | | | | 15,362 | | | | 39,717 | | | | | | | | | |
Shares redeemed | | | | | | | | | | | (31,625 | ) | | | (39,707 | ) | | | (88,594 | ) | | | (167,670 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net decrease in shares outstanding | | | | | | | | | | | (27,594 | ) | | | (30,391 | ) | | | (70,101 | ) | | | (93,345 | ) | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | | | | | | | | | | | | | | | | | 30,717 | | | | 109,195 | | | | 62,721 | | | | 202,260 | |
Issued to shareholders in reinvestment of distributions | | | | | | | | | | | | | | | | | | | 18,977 | | | | 41,879 | | | | 60,755 | | | | 80,120 | |
Shares redeemed | | | | | | | | | | | | | | | | | | | (43,925 | ) | | | (108,304 | ) | | | (554,231 | ) | | | (279,415 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in shares outstanding | | | | | | | | | | | | | | | | | | | 5,769 | | | | 42,770 | | | | (430,755 | ) | | | 2,965 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 28,871 | | | | 11,185 | | | | 91,314 | | | | 669,137 | | | | | | | | | | | | 3,463,494 | | | | 6,299,606 | |
Issued to shareholders in reinvestment of distributions | | | 2,786 | | | | 3,239 | | | | 3,768 | | | | 7,825 | | | | | | | | | | | | 513,474 | | | | 565,094 | |
Shares redeemed | | | (2,148 | ) | | | (185,211 | ) | | | (92,800 | ) | | | (665,869 | ) | | | | | | | | | | | (4,306,452 | ) | | | (4,130,437 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in shares outstanding | | | 29,509 | | | | (170,787 | ) | | | 2,282 | | | | 11,093 | | | | | | | | | | | | (329,484 | ) | | | 2,734,263 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | | | | | | | | | | | | | | | | | | | | | | | | | 24,266 | | | | 68,535 | |
Issued to shareholders in reinvestment of distributions | | | | | | | | | | | | | | | | | | | | | | | | | | | 14,183 | | | | 19,501 | |
Shares redeemed | | | | | | | | | | | | | | | | | | | | | | | | | | | (27,871 | ) | | | (150,298 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in shares outstanding | | | | | | | | | | | | | | | | | | | | | | | | | | | 10,578 | | | | (62,262 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| See accompanying Notes to Financial Statements. |
| | |
| |
| 38 | |
| Madison Funds | April 30, 2018 |
| |
| |
| Statements of Changes in Net Assets |
| | | Dividend Income Fund | | Large Cap Value Fund | | Investors Fund | | Mid Cap Fund |
| | | | | | | | | | | | | |
| | | Six-Months
Ended
April 30, 2018
(unaudited) | | Year Ended
October 31,
2017 | | Six-Months
Ended
April 30, 2018
(unaudited) | | Year Ended
October 31,
2017 | | Six-Months
Ended
April 30, 2018
(unaudited) | | Year Ended
October 31,
2017 | | Six-Months
Ended
April 30, 2018
(unaudited) | | Year Ended
October 31,
2017 |
| | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at beginning of period | | $ | 107,411,281 | | | $ | 102,401,892 | | | $ | 91,027,054 | | | $ | 103,063,978 | | | $ | 307,152,504 | | | $ | 278,638,527 | | | $ | 344,426,344 | | | $ | 306,413,976 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Increase (decrease) in net assets from operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 1,058,216 | | | | 1,897,603 | | | | 420,279 | | | | 1,617,953 | | | | 832,572 | | | | 962,926 | | | | (300,927 | ) | | | (610,991 | ) |
Net realized gain | | | 6,595,133 | | | | 2,466,473 | | | | 4,012,509 | | | | 7,948,836 | | | | 18,649,298 | | | | 16,705,859 | | | | 13,056,823 | | | | 12,992,993 | |
Net change in unrealized appreciation (depreciation) | | | (5,894,211 | ) | | | 16,333,792 | | | | 865,019 | | | | 5,511,070 | | | | (11,847,012 | ) | | | 41,934,972 | | | | 142,017 | | | | 41,373,630 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase in net assets from operations | | | 1,759,138 | | | | 20,697,868 | | | | 5,297,807 | | | | 15,077,859 | | | | 7,634,858 | | | | 59,603,757 | | | | 12,897,913 | | | | 53,755,632 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Distributions to shareholders from: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | (1,186,259 | ) | | | (733,449 | ) | | | (113,709 | ) | | | (2,015 | ) | | | – | | | | (2,531 | ) |
Class B | | | | | | | | | | | (31,965 | ) | | | (13,654 | ) | | | | | | | | | | | – | | | | – | |
Class Y | | | (993,389 | ) | | | (1,888,455 | ) | | | (382,737 | ) | | | (514,776 | ) | | | (894,356 | ) | | | (472,406 | ) | | | – | | | | – | |
Class R6 | | | | | | | | | | | | | | | | | | | (40,614 | ) | | | (25,360 | ) | | | – | | | | – | |
Net realized gains | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A | | | | | | | | | | | (5,855,234 | ) | | | (8,381,367 | ) | | | (4,159,690 | ) | | | (2,071,803 | ) | | | (2,205,515 | ) | | | (2,386,234 | ) |
Class B | | | | | | | | | | | (285,838 | ) | | | (501,914 | ) | | | | | | | | | | | (110,824 | ) | | | (154,728 | ) |
Class Y | | | (2,456,142 | ) | | | (2,424,186 | ) | | | (1,643,637 | ) | | | (4,807,334 | ) | | | (11,837,212 | ) | | | (6,262,644 | ) | | | (9,665,188 | ) | | | (10,575,693 | ) |
Class R6 | | | | | | | | | | | | | | | | | | | (368,348 | ) | | | (185,942 | ) | | | (412,318 | ) | | | (460,898 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (3,449,531 | ) | | | (4,312,641 | ) | | | (9,385,670 | ) | | | (14,952,494 | ) | | | (17,413,929 | ) | | | (9,020,170 | ) | | | (12,393,845 | ) | | | (13,580,084 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Capital Stock transactions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | | | | | | | | | 1,200,911 | | | | 3,748,022 | | | | 1,059,158 | | | | 3,194,360 | | | | 1,440,411 | | | | 4,346,577 | |
Issued to shareholders in reinvestment of distributions | | | | | | | | | | | 7,023,455 | | | | 9,072,454 | | | | 4,267,912 | | | | 2,069,032 | | | | 2,197,702 | | | | 2,384,049 | |
Shares redeemed | | | | | | | | | | | (4,734,279 | ) | | | (7,905,016 | ) | | | (4,740,403 | ) | | | (7,427,188 | ) | | | (4,273,333 | ) | | | (6,626,499 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) from capital stock transactions | | | | | | | | | | | 3,490,087 | | | | 4,915,460 | | | | 586,667 | | | | (2,163,796 | ) | | | (635,220 | ) | | | 104,127 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class B Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | | | | | | | | | – | | | | 237,495 | | | | | | | | | | | | – | | | | 153,307 | |
Issued to shareholders in reinvestment of distributions | | | | | | | | | | | 317,803 | | | | 515,568 | | | | | | | | | | | | 110,823 | | | | 154,728 | |
Shares redeemed | | | | | | | | | | | (384,020 | ) | | | (1,013,067 | ) | | | | | | | | | | | (390,358 | ) | | | (866,212 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net decrease from capital stock transactions | | | | | | | | | | | (66,217 | ) | | | (260,004 | ) | | | | | | | | | | | (279,535 | ) | | | (558,177 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 12,665,429 | | | | 6,571,618 | | | | 7,489,000 | | | | 778,384 | | | | 8,597,063 | | | | 21,462,130 | | | | 29,738,234 | | | | 47,602,769 | |
Issued to shareholders in reinvestment of distributions | | | 3,411,936 | | | | 4,270,537 | | | | 2,023,931 | | | | 5,312,641 | | | | 12,573,624 | | | | 6,666,022 | | | | 8,380,188 | | | | 9,085,089 | |
Shares redeemed | | | (12,156,283 | ) | | | (22,217,993 | ) | | | (1,427,666 | ) | | | (22,908,770 | ) | | | (30,650,838 | ) | | | (47,583,599 | ) | | | (35,734,841 | ) | | | (59,874,276 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) from capital stock transactions | | | 3,921,082 | | | | (11,375,838 | ) | | | 8,085,265 | | | | (16,817,745 | ) | | | (9,480,151 | ) | | | (19,455,447 | ) | | | 2,383,581 | | | | (3,186,418 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Class R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | | | | | | | | | | | | | | | | | 330,189 | | | | 263,617 | | | | 402,953 | | | | 2,768,960 | |
Issued to shareholders in reinvestment of distributions | | | | | | | | | | | | | | | | | | | 408,962 | | | | 211,302 | | | | 412,318 | | | | 460,898 | |
Shares redeemed | | | | | | | | | | | | | | | | | | | (1,185,180 | ) | | | (925,286 | ) | | | (632,890 | ) | | | (1,752,570 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) from capital stock transactions | | | | | | | | | | | | | | | | | | | (446,029 | ) | | | (450,367 | ) | | | 182,381 | | | | 1,477,288 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total net increase (decrease) from capital stock transactions | | | 3,921,082 | | | | (11,375,838 | ) | | | 11,509,135 | | | | (12,162,289 | ) | | | (9,339,513 | ) | | | (22,069,610 | ) | | | 1,651,207 | | | | (2,163,180 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total increase (decrease) in net assets | | | 2,230,689 | | | | 5,009,389 | | | | 7,421,272 | | | | (12,036,924 | ) | | | (19,118,584 | ) | | | 28,513,977 | | | | 2,155,275 | | | | 38,012,368 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period | | $ | 109,641,970 | | | $ | 107,411,281 | | | $ | 98,448,326 | | | $ | 91,027,054 | | | $ | 288,033,920 | | | $ | 307,152,504 | | | $ | 346,581,619 | | | $ | 344,426,344 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Undistributed net investment income (loss) included in net assets | | $ | 127,282 | | | $ | 62,455 | | | $ | 283,139 | | | $ | 1,463,821 | | | $ | 655,406 | | | $ | 871,513 | | | $ | (1,019,880 | ) | | $ | (718,953 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Capital Share transactions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | | | | | | | | | 80,138 | | | | 250,332 | | | | 45,813 | | | | 151,837 | | | | 151,237 | | | | 490,629 | |
Issued to shareholders in reinvestment of distributions | | | | | | | | | | | 477,461 | | | | 640,706 | | | | 186,209 | | | | 104,609 | | | | 231,825 | | | | 279,172 | |
Shares redeemed | | | | | | | | | | | (313,623 | ) | | | (532,884 | ) | | | (204,342 | ) | | | (351,074 | ) | | | (448,781 | ) | | | (746,644 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in shares outstanding | | | | | | | | | | | 243,976 | | | | 358,154 | | | | 27,680 | | | | (94,628 | ) | | | (65,719 | ) | | | 23,157 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class B Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | | | | | | | | | – | | | | 15,076 | | | | | | | | | | | | – | | | | 20,801 | |
Issued to shareholders in reinvestment of distributions | | | | | | | | | | | 22,116 | | | | 37,199 | | | | | | | | | | | | 14,208 | | | | 21,701 | |
Shares redeemed | | | | | | | | | | | (26,417 | ) | | | (70,166 | ) | | | | | | | | | | | (50,132 | ) | | | (117,205 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net decrease in shares outstanding | | | | | | | | | | | (4,301 | ) | | | (17,891 | ) | | | | | | | | | | | (35,924 | ) | | | (74,703 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Class Y Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | 469,249 | | | | 271,355 | | | | 497,598 | | | | 49,341 | | | | 369,914 | | | | 1,024,325 | | | | 2,991,844 | | | | 5,165,354 | |
Issued to shareholders in reinvestment of distributions | | | 128,286 | | | | 179,528 | | | | 137,776 | | | | 375,717 | | | | 548,109 | | | | 336,668 | | | | 846,484 | | | | 1,025,405 | |
Shares redeemed | | | (460,640 | ) | | | (922,873 | ) | | | (96,659 | ) | | | (1,561,425 | ) | | | (1,318,432 | ) | | | (2,261,486 | ) | | | (3,595,766 | ) | | | (6,477,726 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in shares outstanding | | | 136,895 | | | | (471,990 | ) | | | 538,715 | | | | (1,136,367 | ) | | | (400,409 | ) | | | (900,493 | ) | | | 242,562 | | | | (286,967 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Class R6 Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Shares sold | | | | | | | | | | | | | | | | | | | 14,237 | | | | 12,368 | | | | 39,519 | | | | 312,199 | |
Issued to shareholders in reinvestment of distributions | | | | | | | | | | | | | | | | | | | 17,743 | | | | 10,624 | | | | 40,864 | | | | 51,211 | |
Shares redeemed | | | | | | | | | | | | | | | | | | | (50,622 | ) | | | (42,647 | ) | | | (62,634 | ) | | | (187,281 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net increase (decrease) in shares outstanding | | | | | | | | | | | | | | | | | | | (18,642 | ) | | | (19,655 | ) | | | 17,749 | | | | 176,129 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| See accompanying Notes to Financial Statements. |
| | |
| |
| | 39 |
| Madison Funds | April 30, 2018 |
| |
| |
| Statements of Changes in Net Assets |
| | | Small Cap Fund | | International Stock Fund | |
| | | | | | | | |
| | | Six-Months
Ended
April 30, 2018
(unaudited) | | Year Ended
October 31,
2017 | | Six-Months
Ended
April 30, 2018
(unaudited) | | Year Ended
October 31,
2017 | |
| | | | | | | | | | | | | | |
| Net Assets at beginning of period | | $ | 94,942,927 | | | $ | 95,008,369 | | | $ | 31,812,695 | | | $ | 35,258,713 | | |
| | | | | | | | | | | | | | |
| Increase (decrease) in net assets from operations: | | | | | | | | | | | | | | | | | |
Net investment income | | | 201,584 | | | | 973,206 | | | | 125,163 | | | | 276,930 | | |
Net realized gain | | | 1,849,274 | | | | 6,083,798 | | | | 2,428,196 | | | | 142,593 | | |
Net change in unrealized appreciation (depreciation) | | | (2,353,973 | ) | | | 11,214,813 | | | | (1,613,760 | ) | | | 4,706,201 | | |
| | | | | | | | | | | | | | |
Net increase (decrease) in net assets from operations | | | (303,115 | ) | | | 18,271,817 | | | | 939,599 | | | | 5,125,724 | | |
| | | | | | | | | | | | | | |
| Distributions to shareholders from: | | | | | | | | | | | | | | | | | |
Net investment income | | | | | | | | | | | | | | | | | |
Class A | | | (30,404 | ) | | | (5,020 | ) | | | (175,256 | ) | | | (216,849 | ) | |
Class B | | | (146 | ) | | | – | | | | (2,510 | ) | | | (7,146 | ) | |
Class Y | | | (930,191 | ) | | | (406,818 | ) | | | (84,986 | ) | | | (162,676 | ) | |
Net realized gains | | | | | | | | | | | | | | | | | |
Class A | | | (267,563 | ) | | | (108,733 | ) | | | – | | | | – | | |
Class B | | | (29,419 | ) | | | (14,931 | ) | | | – | | | | – | | |
Class Y | | | (6,142,488 | ) | | | (3,034,721 | ) | | | – | | | | – | | |
| | | | | | | | | | | | | | |
Total distributions | | | (7,400,211 | ) | | | (3,570,223 | ) | | | (262,752 | ) | | | (386,671 | ) | |
| | | | | | | | | | | | | | |
| Capital Stock transactions: | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | |
Shares sold | | | 318,230 | | | | 805,432 | | | | 858,599 | | | | 1,603,663 | | |
Issued to shareholders in reinvestment of distributions | | | 297,688 | | | | 113,635 | | | | 174,704 | | | | 216,005 | | |
Shares redeemed | | | (646,841 | ) | | | (712,093 | ) | | | (1,598,040 | ) | | | (2,817,803 | ) | |
| | | | | | | | | | | | | | |
Net increase (decrease) from capital stock transactions | | | (30,923 | ) | | | 206,974 | | | | (564,737 | ) | | | (998,135 | ) | |
| | | | | | | | | | | | | | |
Class B Shares | | | | | | | | | | | | | | | | | |
Shares sold | | | – | | | | 35,497 | | | | 19,752 | | | | 33,292 | | |
Issued to shareholders in reinvestment of distributions | | | 29,565 | | | | 14,931 | | | | 2,510 | | | | 7,146 | | |
Shares redeemed | | | (47,844 | ) | | | (83,289 | ) | | | (198,661 | ) | | | (310,878 | ) | |
| | | | | | | | | | | | | | |
Net decrease from capital stock transactions | | | (18,279 | ) | | | (32,861 | ) | | | (176,399 | ) | | | (270,440 | ) | |
| | | | | | | | | | | | | | |
Class Y Shares | | | | | | | | | | | | | | | | | |
Shares sold | | | 4,492,219 | | | | 7,779,707 | | | | 217,787 | | | | 2,597,484 | | |
Issued to shareholders in reinvestment of distributions | | | 6,800,968 | | | | 3,326,506 | | | | 84,986 | | | | 162,676 | | |
Shares redeemed | | | (10,459,087 | ) | | | (26,047,362 | ) | | | (5,782,662 | ) | | | (9,676,656 | ) | |
| | | | | | | | | | | | | | |
Net increase (decrease) from capital stock transactions | | | 834,100 | | | | (14,941,149 | ) | | | (5,479,889 | ) | | | (6,916,496 | ) | |
| | | | | | | | | | | | | | |
| Total net increase (decrease) from capital stock transactions | | | 784,898 | | | | (14,767,036 | ) | | | (6,221,025 | ) | | | (8,185,071 | ) | |
| | | | | | | | | | | | | | |
| Total decrease in net assets | | | (6,918,428 | ) | | | (65,442 | ) | | | (5,544,178 | ) | | | (3,446,018 | ) | |
| | | | | | | | | | | | | | |
| Net Assets at end of period | | $ | 88,024,499 | | | $ | 94,942,927 | | | $ | 26,268,517 | | | $ | 31,812,695 | | |
| | | | | | | | | | | | | | |
Undistributed net investment income included in net assets | | $ | 65,957 | | | $ | 825,114 | | | $ | 125,432 | | | $ | 263,021 | | |
| | | | | | | | | | | | | | |
| Capital Share transactions: | | | | | | | | | | | | | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | |
Shares sold | | | 19,856 | | | | 48,928 | | | | 59,528 | | | | 125,080 | | |
Issued to shareholders in reinvestment of distributions | | | 18,467 | | | | 6,764 | | | | 12,217 | | | | 18,398 | | |
Shares redeemed | | | (40,548 | ) | | | (43,619 | ) | | | (111,284 | ) | | | (222,164 | ) | |
| | | | | | | | | | | | | | |
Net increase (decrease) in shares outstanding | | | (2,225 | ) | | | 12,073 | | | | (39,539 | ) | | | (78,686 | ) | |
| | | | | | | | | | | | | | |
Class B Shares | | | | | | | | | | | | | | | | | |
Shares sold | | | – | | | | 2,205 | | | | 1,352 | | | | 2,726 | | |
Issued to shareholders in reinvestment of distributions | | | 1,957 | | | | 944 | | | | 180 | | | | 621 | | |
Shares redeemed | | | (3,197 | ) | | | (5,467 | ) | | | (14,263 | ) | | | (25,524 | ) | |
| | | | | | | | | | | | | | |
Net decrease in shares outstanding | | | (1,240 | ) | | | (2,318 | ) | | | (12,731 | ) | | | (22,177 | ) | |
| | | | | | | | | | | | | | |
Class Y Shares | | | | | | | | | | | | | | | | | |
Shares sold | | | 280,754 | | | | 474,356 | | | | 15,156 | | | | 208,011 | | |
Issued to shareholders in reinvestment of distributions | | | 421,113 | | | | 197,653 | | | | 5,939 | | | | 13,857 | | |
Shares redeemed | | | (650,514 | ) | | | (1,597,072 | ) | | | (400,711 | ) | | | (780,058 | ) | |
| | | | | | | | | | | | | | |
Net increase (decrease) in shares outstanding | | | 51,353 | | | | (925,063 | ) | | | (379,616 | ) | | | (558,190 | ) | |
| | | | | | | | | | | | | | |
| See accompanying Notes to Financial Statements. |
| | |
| |
| 40 | |
| Madison Funds | April 30, 2018 |
| |
| |
| Financial Highlights for a Share of Beneficial Interest Outstanding |
| | | CONSERVATIVE ALLOCATION FUND |
| | | |
| | | CLASS A | | CLASS B |
| | | | | | | |
| | | Six Months | | Year Ended October 31, | | Six Months | | Year Ended October 31, |
| | | | | | | | | | | | | | | |
| | | Ended 4/30/18 | | | | | | | | | | | | | | | | | | | | | | Ended 4/30/18 | | | | | | | | | | | | | | | | | | | | |
| | | (unaudited) | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 | | | (unaudited) | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value at beginning of period | | $ | 10.97 | | | $ | 10.46 | | | $ | 10.63 | | | $ | 11.15 | | | $ | 10.68 | | | $ | 10.43 | | | $ | 11.05 | | | $ | 10.52 | | | $ | 10.69 | | | $ | 11.19 | | | $ | 10.71 | | | $ | 10.42 | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income1 | | | 0.08 | | | | 0.15 | | | | 0.14 | | | | 0.13 | | | | 0.15 | | | | 0.22 | | | | 0.05 | | | | 0.08 | | | | 0.07 | | | | 0.06 | | | | 0.06 | | | | 0.15 | |
Net realized and unrealized gain (loss) on investments | | | (0.07 | ) | | | 0.69 | | | | 0.17 | | | | – | | | | 0.50 | | | | 0.48 | | | | (0.08 | ) | | | 0.69 | | | | 0.16 | | | | (0.01 | ) | | | 0.51 | | | | 0.47 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 0.01 | | | | 0.84 | | | | 0.31 | | | | 0.13 | | | | 0.65 | | | | 0.70 | | | | (0.03 | ) | | | 0.77 | | | | 0.23 | | | | 0.05 | | | | 0.57 | | | | 0.62 | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | (0.13 | ) | | | (0.18 | ) | | | (0.16 | ) | | | (0.17 | ) | | | (0.14 | ) | | | (0.45 | ) | | | (0.09 | ) | | | (0.09 | ) | | | (0.08 | ) | | | (0.07 | ) | | | (0.05 | ) | | | (0.33 | ) |
Capital gains | | | (0.27 | ) | | | (0.15 | ) | | | (0.32 | ) | | | (0.48 | ) | | | (0.04 | ) | | | – | | | | (0.27 | ) | | | (0.15 | ) | | | (0.32 | ) | | | (0.48 | ) | | | (0.04 | ) | | | – | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (0.40 | ) | | | (0.33 | ) | | | (0.48 | ) | | | (0.65 | ) | | | (0.18 | ) | | | (0.45 | ) | | | (0.36 | ) | | | (0.24 | ) | | | (0.40 | ) | | | (0.55 | ) | | | (0.09 | ) | | | (0.33 | ) |
| Net increase (decrease) in net asset value | | | (0.39 | ) | | | 0.51 | | | | (0.17 | ) | | | (0.52 | ) | | | 0.47 | | | | 0.25 | | | | (0.39 | ) | | | 0.53 | | | | (0.17 | ) | | | (0.50 | ) | | | 0.48 | | | | 0.29 | |
| Net Asset Value at end of period | | $ | 10.58 | | | $ | 10.97 | | | $ | 10.46 | | | $ | 10.63 | | | $ | 11.15 | | | $ | 10.68 | | | $ | 10.66 | | | $ | 11.05 | | | $ | 10.52 | | | $ | 10.69 | | | $ | 11.19 | | | $ | 10.71 | |
| Total Return (%)2 | | | 0.12 | 3 | | | 8.25 | | | | 3.10 | | | | 1.17 | | | | 6.13 | | | | 6.90 | | | | (0.29 | )3 | | | 7.47 | | | | 2.27 | | | | 0.44 | | | | 5.41 | | | | 6.05 | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 43,871 | | | $ | 45,005 | | | $ | 43,752 | | | $ | 46,039 | | | $ | 44,438 | | | $ | 42,353 | | | $ | 7,105 | | | $ | 8,119 | | | $ | 9,175 | | | $ | 10,064 | | | $ | 11,393 | | | $ | 11,569 | |
| Ratios of expenses to average net assets (%) | | | 0.70 | 4 | | | 0.70 | | | | 0.71 | | | | 0.70 | | | | 0.70 | | | | 0.70 | | | | 1.45 | 4 | | | 1.45 | | | | 1.46 | | | | 1.45 | | | | 1.45 | | | | 1.45 | |
| Ratio of net investment income to average net assets (%) | | | 1.57 | 4 | | | 1.46 | | | | 1.36 | | | | 1.23 | | | | 1.35 | | | | 2.09 | | | | 0.85 | 4 | | | 0.74 | | | | 0.60 | | | | 0.59 | | | | 0.59 | | | | 1.29 | |
| Portfolio turnover (%)5 | | | 36 | 3 | | | 48 | | | | 82 | | | | 83 | | | | 96 | | | | 69 | | | | 363 | | | | 48 | | | | 82 | | | | 83 | | | | 96 | | | | 69 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | CLASS C | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months | | Year Ended October 31, | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Ended 4/30/18 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (unaudited) | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value at beginning of period | | $ | 11.06 | | | $ | 10.53 | | | $ | 10.69 | | | $ | 11.20 | | | $ | 10.72 | | | $ | 10.43 | | | | | | | | | | | | | | | | | | | | | | | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income1 | | | 0.04 | | | | 0.08 | | | | 0.06 | | | | 0.05 | | | | 0.06 | | | | 0.16 | | | | | | | | | | | | | | | | | | | | | | | | | |
Net realized and unrealized gain (loss) on investments | | | (0.07 | ) | | | 0.69 | | | | 0.18 | | | | (0.01 | ) | | | 0.51 | | | | 0.46 | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | (0.03 | ) | | | 0.77 | | | | 0.24 | | | | 0.04 | | | | 0.57 | | | | 0.62 | | | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | (0.09 | ) | | | (0.09 | ) | | | (0.08 | ) | | | (0.07 | ) | | | (0.05 | ) | | | (0.33 | ) | | | | | | | | | | | | | | | | | | | | | | | | |
Capital gains | | | (0.27 | ) | | | (0.15 | ) | | | (0.32 | ) | | | (0.48 | ) | | | (0.04 | ) | | | – | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (0.36 | ) | | | (0.24 | ) | | | (0.40 | ) | | | (0.55 | ) | | | (0.09 | ) | | | (0.33 | ) | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net asset value | | | (0.39 | ) | | | 0.53 | | | | (0.16 | ) | | | (0.51 | ) | | | 0.48 | | | | 0.29 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value at end of period | | $ | 10.67 | | | $ | 11.06 | | | $ | 10.53 | | | $ | 10.69 | | | $ | 11.20 | | | $ | 10.72 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Return (%)2 | | | (0.29 | )3 | | | 7.46 | | | | 2.37 | | | | 0.34 | | | | 5.41 | | | | 6.05 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 20,794 | | | $ | 20,960 | | | $ | 20,225 | | | $ | 19,694 | | | $ | 18,948 | | | $ | 16,787 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ratios of expenses to average net assets (%) | | | 1.45 | 4 | | | 1.45 | | | | 1.46 | | | | 1.45 | | | | 1.45 | | | | 1.45 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ratio of net investment income to average net assets (%) | | | 0.81 | 4 | | | 0.71 | | | | 0.54 | | | | 0.49 | | | | 0.57 | | | | 1.22 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Portfolio turnover (%)5 | | | 36 | 3 | | | 48 | | | | 82 | | | | 83 | | | | 96 | | | | 69 | | | | | | | | | | | | | | | | | | | | | | | | | |
| 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. |
| | |
| |
| | 41 |
| Madison Funds | April 30, 2018 |
| |
| |
| Financial Highlights for a Share of Beneficial Interest Outstanding |
| | | MODERATE ALLOCATION FUND |
| | | | |
| | | CLASS A | | CLASS B |
| | | | | | | |
| | | Six Months | | Year Ended October 31, | | Six Months | | Year Ended October 31, |
| | | | | | | | | | | | | | | |
| | | Ended 4/30/18 | | | | | | | | | | | | | | | | | | | | | | Ended 4/30/18 | | | | | | | | | | | | | | | | | | | | |
| | | (unaudited) | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 | | (unaudited) | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value at beginning of period | | $ | 12.20 | | | $ | 11.18 | | | $ | 11.62 | | | $ | 12.27 | | | $ | 11.50 | | | $ | 10.35 | | | $ | 12.06 | | | $ | 11.05 | | | $ | 11.52 | | | $ | 12.19 | | | $ | 11.43 | | | $ | 10.29 | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income1 | | | 0.08 | | | | 0.14 | | | | 0.13 | | | | 0.13 | | | | 0.12 | | | | 0.17 | | | | 0.04 | | | | 0.07 | | | | 0.06 | | | | 0.05 | | | | 0.04 | | | | 0.09 | |
Net realized and unrealized gain on investments | | | 0.07 | | | | 1.35 | | | | 0.18 | | | | 0.04 | | | | 0.80 | | | | 1.23 | | | | 0.07 | | | | 1.33 | | | | 0.16 | | | | 0.04 | | | | 0.78 | | | | 1.23 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 0.15 | | | | 1.49 | | | | 0.31 | | | | 0.17 | | | | 0.92 | | | | 1.40 | | | | 0.11 | | | | 1.40 | | | | 0.22 | | | | 0.09 | | | | 0.82 | | | | 1.32 | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | (0.17 | ) | | | (0.15 | ) | | | (0.12 | ) | | | (0.17 | ) | | | (0.15 | ) | | | (0.25 | ) | | | (0.08 | ) | | | (0.07 | ) | | | (0.06 | ) | | | (0.11 | ) | | | (0.06 | ) | | | (0.18 | ) |
Capital gains | | | (0.44 | ) | | | (0.32 | ) | | | (0.63 | ) | | | (0.65 | ) | | | – | | | | – | | | | (0.44 | ) | | | (0.32 | ) | | | (0.63 | ) | | | (0.65 | ) | | | – | | | | – | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (0.61 | ) | | | (0.47 | ) | | | (0.75 | ) | | | (0.82 | ) | | | (0.15 | ) | | | (0.25 | ) | | | (0.52 | ) | | | (0.39 | ) | | | (0.69 | ) | | | (0.76 | ) | | | (0.06 | ) | | | (0.18 | ) |
| Net increase (decrease) in net asset value | | | (0.46 | ) | | | 1.02 | | | | (0.44 | ) | | | (0.65 | ) | | | 0.77 | | | | 1.15 | | | | (0.41 | ) | | | 1.01 | | | | (0.47 | ) | | | (0.67 | ) | | | 0.76 | | | | 1.14 | |
| Net Asset Value at end of period | | $ | 11.74 | | | $ | 12.20 | | | $ | 11.18 | | | $ | 11.62 | | | $ | 12.27 | | | $ | 11.50 | | | $ | 11.65 | | | $ | 12.06 | | | $ | 11.05 | | | $ | 11.52 | | | $ | 12.19 | | | $ | 11.43 | |
| Total Return (%)2 | | | 1.17 | 3 | | | 13.88 | | | | 2.95 | | | | 1.44 | | | | 8.03 | | | | 13.87 | | | | 0.82 | 3 | | | 13.07 | | | | 2.15 | | | | 0.72 | | | | 7.18 | | | | 12.98 | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 112,749 | | | $ | 115,586 | | | $ | 104,276 | | | $ | 107,043 | | | $ | 109,148 | | | $ | 104,849 | | | $ | 20,382 | | | $ | 23,101 | | | $ | 25,440 | | | $ | 29,451 | | | $ | 33,235 | | | $ | 33,070 | |
| Ratios of expenses to average net assets (%) | | | 0.70 | 4 | | | 0.70 | | | | 0.71 | | | | 0.70 | | | | 0.70 | | | | 0.70 | | | | 1.45 | 4 | | | 1.45 | | | | 1.46 | | | | 1.45 | | | | 1.45 | | | | 1.45 | |
| Ratio of net investment income to average net assets (%) | | | 1.29 | 4 | | | 1.23 | | | | 1.13 | | | | 1.02 | | | | 1.00 | | | | 1.55 | | | | 0.59 | 4 | | | 0.56 | | | | 0.58 | | | | 0.41 | | | | 0.27 | | | | 0.82 | |
| Portfolio turnover (%)5 | | | 39 | 3 | | | 50 | | | | 97 | | | | 81 | | | | 89 | | | | 69 | | | | 39 | 3 | | | 50 | | | | 97 | | | | 81 | | | | 89 | | | | 69 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | CLASS C | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months | | Year Ended October 31, | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Ended 4/30/18 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (unaudited) | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value at beginning of period | | $ | 12.07 | | | $ | 11.06 | | | $ | 11.53 | | | $ | 12.20 | | | $ | 11.44 | | | $ | 10.30 | | | | | | | | | | | | | | | | | | | | | | | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income1 | | | 0.04 | | | | 0.06 | | | | 0.05 | | | | 0.02 | | | | 0.03 | | | | 0.10 | | | | | | | | | | | | | | | | | | | | | | | | | |
Net realized and unrealized gain on investments | | | 0.07 | | | | 1.34 | | | | 0.17 | | | | 0.07 | | | | 0.79 | | | | 1.22 | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 0.11 | | | | 1.40 | | | | 0.22 | | | | 0.09 | | | | 0.82 | | | | 1.32 | | | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | (0.08 | ) | | | (0.07 | ) | | | (0.06 | ) | | | (0.11 | ) | | | (0.06 | ) | | | (0.18 | ) | | | | | | | | | | | | | | | | | | | | | | | | |
Capital gains | | | (0.44 | ) | | | (0.32 | ) | | | (0.63 | ) | | | (0.65 | ) | | | – | | | | – | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (0.52 | ) | | | (0.39 | ) | | | (0.69 | ) | | | (0.76 | ) | | | (0.06 | ) | | | (0.18 | ) | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net asset value | | | (0.41 | ) | | | 1.01 | | | | (0.47 | ) | | | (0.67 | ) | | | 0.76 | | | | 1.14 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value at end of period | | $ | 11.66 | | | $ | 12.07 | | | $ | 11.06 | | | $ | 11.53 | | | $ | 12.20 | | | $ | 11.44 | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Return (%)2 | | | 0.82 | 3 | | | 13.06 | | | | 2.15 | | | | 0.72 | | | | 7.17 | | | | 12.97 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 9,512 | | | $ | 9,625 | | | $ | 9,100 | | | $ | 9,506 | | | $ | 8,238 | | | $ | 7,347 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ratios of expenses to average net assets (%) | | | 1.45 | 4 | | | 1.45 | | | | 1.46 | | | | 1.45 | | | | 1.45 | | | | 1.45 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ratio of net investment income to average net assets (%) | | | 0.51 | 4 | | | 0.52 | | | | 0.47 | | | | 0.01 | | | | 0.21 | | | | 0.82 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Portfolio turnover (%)5 | | | 39 | 3 | | | 50 | | | | 97 | | | | 81 | | | | 89 | | | | 69 | | | | | | | | | | | | | | | | | | | | | | | | | |
| 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. |
| | |
| |
| 42 | |
| Madison Funds | April 30, 2018 |
| |
| |
| Financial Highlights for a Share of Beneficial Interest Outstanding |
| | | AGGRESSIVE ALLOCATION FUND |
| | | | |
| | | CLASS A | | CLASS B |
| | | | | | | |
| | | Six Months | | Year Ended October 31, | | Six Months | | Year Ended October 31, |
| | | | | | | | | | | | | | | |
| | | Ended 4/30/18 | | | | | | | | | | | | | | | | | | | | | | Ended 4/30/18 | | | | | | | | | | | | | | | | | | | | |
| | | (unaudited) | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 | | (unaudited) | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value at beginning of period | | $ | 12.71 | | | $ | 11.12 | | | $ | 11.87 | | | $ | 12.81 | | | $ | 11.72 | | | $ | 10.01 | | | $ | 12.35 | | | $ | 10.83 | | | $ | 11.65 | | | $ | 12.61 | | | $ | 11.59 | | | $ | 9.89 | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income1 | | | 0.07 | | | | 0.13 | | | | 0.12 | | | | 0.11 | | | | 0.09 | | | | 0.12 | | | | 0.01 | | | | 0.02 | | | | 0.06 | | | | 0.03 | | | | 0.00 | 5 | | | 0.04 | |
Net realized and unrealized gain on investments | | | 0.18 | | | | 1.88 | | | | 0.15 | | | | 0.10 | | | | 1.04 | | | | 1.80 | | | | 0.18 | | | | 1.85 | | | | 0.12 | | | | 0.09 | | | | 1.02 | | | | 1.80 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 0.25 | | | | 2.01 | | | | 0.27 | | | | 0.21 | | | | 1.13 | | | | 1.92 | | | | 0.19 | | | | 1.87 | | | | 0.18 | | | | 0.12 | | | | 1.02 | | | | 1.84 | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | (0.15 | ) | | | (0.13 | ) | | | (0.10 | ) | | | (0.20 | ) | | | (0.04 | ) | | | (0.21 | ) | | | (0.05 | ) | | | (0.06 | ) | | | (0.08 | ) | | | (0.13 | ) | | | – | | | | (0.14 | ) |
Capital gains | | | (0.58 | ) | | | (0.29 | ) | | | (0.92 | ) | | | (0.95 | ) | | | – | | | | – | | | | (0.58 | ) | | | (0.29 | ) | | | (0.92 | ) | | | (0.95 | ) | | | – | | | | – | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (0.73 | ) | | | (0.42 | ) | | | (1.02 | ) | | | (1.15 | ) | | | (0.04 | ) | | | (0.21 | ) | | | (0.63 | ) | | | (0.35 | ) | | | (1.00 | ) | | | (1.08 | ) | | | – | | | | (0.14 | ) |
| Net increase (decrease) in net asset value | | | (0.48 | ) | | | 1.59 | | | | (0.75 | ) | | | (0.94 | ) | | | 1.09 | | | | 1.71 | | | | (0.44 | ) | | | 1.52 | | | | (0.82 | ) | | | (0.96 | ) | | | 1.02 | | | | 1.70 | |
| Net Asset Value at end of period | | $ | 12.23 | | | $ | 12.71 | | | $ | 11.12 | | | $ | 11.87 | | | $ | 12.81 | | | $ | 11.72 | | | $ | 11.91 | | | $ | 12.35 | | | $ | 10.83 | | | $ | 11.65 | | | $ | 12.61 | | | $ | 11.59 | |
| Total Return (%)2 | | | 1.89 | 3 | | | 18.66 | | | | 2.65 | | | | 1.66 | | | | 9.67 | | | | 19.56 | | | | 1.48 | 3 | | | 17.83 | | | | 1.88 | | | | 0.91 | | | | 8.80 | | | | 18.79 | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 53,636 | | | $ | 52,811 | | | $ | 45,317 | | | $ | 46,834 | | | $ | 45,697 | | | $ | 41,526 | | | $ | 9,466 | | | $ | 10,442 | | | $ | 11,089 | | | $ | 12,383 | | | $ | 13,063 | | | $ | 12,365 | |
| Ratios of expenses to average net assets (%) | | | 0.70 | 4 | | | 0.70 | | | | 0.71 | | | | 0.70 | | | | 0.70 | | | | 0.70 | | | | 1.45 | 4 | | | 1.45 | | | | 1.46 | | | | 1.45 | | | | 1.45 | | | | 1.45 | |
| Ratio of net investment income (loss) to average net assets (%) | | | 1.03 | 4 | | | 1.02 | | | | 1.04 | | | | 0.81 | | | | 0.73 | | | | 1.02 | | | | 0.35 | 4 | | | 0.35 | | | | 0.56 | | | | 0.21 | | | | (0.01 | ) | | | 0.34 | |
| Portfolio turnover (%)6 | | | 39 | 3 | | | 45 | | | | 98 | | | | 72 | | | | 78 | | | | 67 | | | | 39 | 3 | | | 45 | | | | 98 | | | | 72 | | | | 78 | | | | 67 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | CLASS C | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months | | Year Ended October 31, | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Ended 4/30/18 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (unaudited) | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value at beginning of period | | $ | 12.36 | | | $ | 10.84 | | | $ | 11.66 | | | $ | 12.62 | | | $ | 11.60 | | | $ | 9.90 | | | | | | | | | | | | | | | | | | | | | | | | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income1 | | | 0.02 | | | | 0.02 | | | | 0.05 | | | | 0.02 | | | | (0.01 | ) | | | 0.05 | | | | | | | | | | | | | | | | | | | | | | | | | |
Net realized and unrealized gain on investments | | | 0.17 | | | | 1.85 | | | | 0.13 | | | | 0.10 | | | | 1.03 | | | | 1.79 | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 0.19 | | | | 1.87 | | | | 0.18 | | | | 0.12 | | | | 1.02 | | | | 1.84 | | | | | | | | | | | | | | | | | | | | | | | | | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | (0.05 | ) | | | (0.06 | ) | | | (0.08 | ) | | | (0.13 | ) | | | – | | | | (0.14 | ) | | | | | | | | | | | | | | | | | | | | | | | | |
Capital gains | | | (0.58 | ) | | | (0.29 | ) | | | (0.92 | ) | | | (0.95 | ) | | | – | | | | – | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (0.63 | ) | | | (0.35 | ) | | | (1.00 | ) | | | (1.08 | ) | | | – | | | | (0.14 | ) | | | | | | | | | | | | | | | | | | | | | | | | |
| Net increase (decrease) in net asset value | | | (0.44 | ) | | | 1.52 | | | | (0.82 | ) | | | (0.96 | ) | | | 1.02 | | | | 1.70 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value at end of period | | $ | 11.92 | | | $ | 12.36 | | | $ | 10.84 | | | $ | 11.66 | | | $ | 12.62 | | | $ | 11.60 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total Return (%)2 | | | 1.47 | 3 | | | 17.81 | | | | 1.87 | | | | 0.91 | | | | 8.79 | | | | 18.78 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 2,342 | | | $ | 2,300 | | | $ | 2,411 | | | $ | 2,600 | | | $ | 2,547 | | | $ | 2,116 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ratios of expenses to average net assets (%) | | | 1.45 | 4 | | | 1.45 | | | | 1.46 | | | | 1.45 | | | | 1.45 | | | | 1.45 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Ratio of net investment income (loss) to average net assets (%) | | | 0.26 | 4 | | | 0.45 | | | | 0.42 | | | | 0.05 | | | | (0.09 | ) | | | 0.10 | | | | | | | | | | | | | | | | | | | | | | | | | |
| Portfolio turnover (%)6 | | | 39 | 3 | | | 45 | | | | 98 | | | | 72 | | | | 78 | | | | 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. |
| | |
| |
| | 43 |
| Madison Funds | April 30, 2018 |
| |
| |
| Financial Highlights for a Share of Beneficial Interest Outstanding |
| | | GOVERNMENT MONEY MARKET FUND* |
| | | | |
| | | CLASS A | | CLASS B |
| | | | | | |
| | | Six Months | | Year Ended October 31, | | Six Months | | Year Ended October 31, |
| | | | | | | | | | | | | | | |
| | | Ended 4/30/18 | | | | | | | | | | | | | | | | | | | | | | Ended 4/30/18 | | | | | | | | | | | | | | | | | | | | |
| | | (unaudited) | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 | | (unaudited) | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 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 |
| 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 | | | 0.39 | 4 | | | 0.21 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 0.06 | 4 | | | 0.01 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | 0.00 | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 14,671 | | | $ | 14,972 | | | $ | 18,295 | | | $ | 19,076 | | | $ | 20,570 | | | $ | 24,552 | | | $ | 184 | | | $ | 215 | | | $ | 599 | | | $ | 234 | | | $ | 461 | | | $ | 524 | |
| Ratios of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Before reimbursement of expenses by Adviser (%) | | | 0.55 | 5 | | | 0.55 | | | | 0.56 | | | | 0.55 | | | | 0.55 | | | | 0.55 | | | | 1.30 | 5 | | | 1.30 | | | | 1.30 | | | | 1.30 | | | | 1.30 | | | | 1.30 | |
After reimbursement of expenses by Adviser (%)6 | | | 0.55 | 5 | | | 0.51 | | | | 0.28 | | | | 0.07 | | | | 0.07 | | | | 0.09 | | | | 1.22 | 5 | | | 0.62 | | | | 0.28 | | | | 0.08 | | | | 0.07 | | | | 0.10 | |
| Ratio of net investment income (loss) to average net assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
After reimbursement and waiver of expenses by Adviser (%)6 | | | 0.78 | 5 | | | 0.20 | | | | 0.00 | | | | 0.00 | | | | 0.00 | | | | (0.00 | ) | | | 0.11 | 5 | | | 0.01 | | | | 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. |
| 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 | | | | | | | | | | | | | | | | | | | | | | Year | | Six Months | | | | | | | | | | | | | | | | | | | | | | Year |
| | | Ended 4/30/18 | | Period Ended October 31, | | Ended | | Ended 4/30/18 | | | Period Ended October 31, | | Ended | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | (unaudited) | | 2017 | | 2016 | | 2015 | | 2014 | | 20131 | | 9/30/13 | | (unaudited) | | 2017 | | 2016 | | 2015 | | 2014 | | 20131 | | 9/30/13 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value at beginning of period | | $ | 11.49 | | | $ | 11.67 | | | $ | 11.61 | | | $ | 11.70 | | | $ | 11.54 | | | $ | 11.50 | | | $ | 12.24 | | | $ | 10.85 | | | $ | 11.10 | | | $ | 11.01 | | | $ | 11.08 | | | $ | 10.73 | | | $ | 10.70 | | | $ | 11.44 | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income2 | | | 0.12 | | | | 0.24 | | | | 0.25 | | | | 0.28 | | | | 0.30 | | | | 0.03 | | | | 0.32 | | | | 0.12 | | | | 0.25 | | | | 0.26 | | | | 0.27 | | | | 0.29 | | | | 0.03 | | | | 0.32 | |
Net realized and unrealized gain (loss) on investments | | | (0.29 | ) | | | (0.16 | ) | | | 0.10 | | | | (0.01 | ) | | | 0.35 | | | | 0.04 | | | | (0.65 | ) | | | (0.33 | ) | | | (0.18 | ) | | | 0.15 | | | | 0.01 | | | | 0.40 | | | | 0.03 | | | | (0.66 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | (0.17 | ) | | | 0.08 | | | | 0.35 | | | | 0.27 | | | | 0.65 | | | | 0.07 | | | | (0.33 | ) | | | (0.21 | ) | | | 0.07 | | | | 0.41 | | | | 0.28 | | | | 0.69 | | | | 0.06 | | | | (0.34 | ) |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | (0.12 | ) | | | (0.24 | ) | | | (0.25 | ) | | | (0.28 | ) | | | (0.30 | ) | | | (0.03 | ) | | | (0.32 | ) | | | (0.12 | ) | | | (0.25 | ) | | | (0.26 | ) | | | (0.27 | ) | | | (0.29 | ) | | | (0.03 | ) | | | (0.32 | ) |
Capital gains | | | – | | | | (0.02 | ) | | | (0.04 | ) | | | (0.08 | ) | | | (0.19 | ) | | | – | | | | (0.09 | ) | | | (0.03 | ) | | | (0.07 | ) | | | (0.06 | ) | | | (0.08 | ) | | | (0.05 | ) | | | – | | | | (0.08 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (0.12 | ) | | | (0.26 | ) | | | (0.29 | ) | | | (0.36 | ) | | | (0.49 | ) | | | (0.03 | ) | | | (0.41 | ) | | | (0.15 | ) | | | (0.32 | ) | | | (0.32 | ) | | | (0.35 | ) | | | (0.34 | ) | | | (0.03 | ) | | | (0.40 | ) |
| Net increase (decrease) in net asset value | | | (0.29 | ) | | | (0.18 | ) | | | 0.06 | | | | (0.09 | ) | | | 0.16 | | | | 0.04 | | | | (0.74 | ) | | | (0.36 | ) | | | (0.25 | ) | | | 0.09 | | | | (0.07 | ) | | | 0.35 | | | | 0.03 | | | | (0.74 | ) |
| Net Asset Value at end of period | | $ | 11.20 | | | $ | 11.49 | | | $ | 11.67 | | | $ | 11.61 | | | $ | 11.70 | | | $ | 11.54 | | | $ | 11.50 | | | $ | 10.49 | | | $ | 10.85 | | | $ | 11.10 | | | $ | 11.01 | | | $ | 11.08 | | | $ | 10.73 | | | $ | 10.70 | |
| Total Return (%)3 | | | (1.51 | )4 | | | 0.68 | | | | 3.01 | | | | 2.36 | | | | 5.82 | | | | 0.57 | 4 | | | (2.77 | ) | | | (1.92 | )4 | | | 0.72 | | | | 3.75 | | | | 2.61 | | | | 6.52 | | | | 0.52 | 4 | | | (3.03 | ) |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 21,431 | | | $ | 21,866 | | | $ | 22,350 | | | $ | 22,659 | | | $ | 23,100 | | | $ | 23,408 | | | $ | 23,215 | | | $ | 23,719 | | | $ | 25,294 | | | $ | 27,333 | | | $ | 27,744 | | | $ | 28,415 | | | $ | 27,805 | | | $ | 28,328 | |
| Ratios of expenses to average net assets (%) | | | 0.85 | 5 | | | 0.85 | | | | 0.86 | | | | 0.85 | | | | 0.85 | | | | 0.85 | 5 | | | 0.85 | | | | 0.75 | 5 | | | 0.75 | | | | 0.79 | | | | 0.85 | | | | 0.85 | | | | 0.85 | 5 | | | 0.85 | |
| Ratio of net investment income to average net assets (%) | | | 2.09 | 5 | | | 2.06 | | | | 2.12 | | | | 2.45 | | | | 2.63 | | | | 2.58 | | | | 2.71 | | | | 2.25 | 5 | | | 2.30 | | | | 2.27 | | | | 2.44 | | | | 2.65 | | | | 2.79 | 5 | | | 2.92 | |
| Portfolio turnover (%)6 | | | 7 | 4 | | | 8 | | | | 12 | | | | 12 | | | | 16 | | | | – | 4 | | | 14 | | | | 10 | 4 | | | 6 | | | | 9 | | | | 15 | | | | 30 | | | | 6 | 4 | | | 24 | |
| * | 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. |
| | |
| |
| 44 | |
| Madison Funds | April 30, 2018 |
| |
| |
| Financial Highlights for a Share of Beneficial Interest Outstanding |
| | | HIGH QUALITY BOND FUND* | |
| | | | | |
| | | CLASS Y | |
| | | | | |
| | | Six Months | | | | | | | | | | | | | | | | | | | | | | Year | |
| | | Ended 4/30/18 | | Period Ended October 31, | | Ended | |
| | | | | | | | | | | | | |
| | | (unaudited) | | 2017 | | 2016 | | 2015 | | 2014 | | 20131 | | 12/31/12 | |
| | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value at beginning of period | | $ | 10.93 | | | $ | 11.06 | | | $ | 11.04 | | | $ | 11.04 | | | $ | 11.07 | | | $ | 11.21 | | | $ | 11.15 | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income2 | | | 0.08 | | | | 0.14 | | | | 0.12 | | | | 0.11 | | | | 0.11 | | | | 0.09 | | | | 0.13 | | |
Net realized and unrealized gain (loss) on investments | | | (0.24 | ) | | | (0.12 | ) | | | 0.06 | | | | 0.01 | | | | 0.01 | | | | (0.13 | ) | | | 0.10 | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | (0.16 | ) | | | 0.02 | | | | 0.18 | | | | 0.12 | | | | 0.12 | | | | (0.04 | ) | | | 0.23 | | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | (0.08 | ) | | | (0.14 | ) | | | (0.12 | ) | | | (0.11 | ) | | | (0.11 | ) | | | (0.08 | ) | | | (0.13 | ) | |
Capital gains | | | – | | | | (0.01 | ) | | | (0.04 | ) | | | (0.01 | ) | | | (0.04 | ) | | | (0.02 | ) | | | (0.04 | ) | |
| | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (0.08 | ) | | | (0.15 | ) | | | (0.16 | ) | | | (0.12 | ) | | | (0.15 | ) | | | (0.10 | ) | | | (0.17 | ) | |
| Net increase (decrease) in net asset value | | | (0.24 | ) | | | (0.13 | ) | | | 0.02 | | | | – | | | | (0.03 | ) | | | (0.14 | ) | | | 0.06 | | |
| Net Asset Value at end of period | | $ | 10.69 | | | $ | 10.93 | | | $ | 11.06 | | | $ | 11.04 | | | $ | 11.04 | | | $ | 11.07 | | | $ | 11.21 | | |
| Total Return (%)3 | | | (1.48 | )4 | | | 0.25 | | | | 1.62 | | | | 1.11 | | | | 1.12 | | | | (0.35 | )4 | | | 2.04 | | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 94,792 | | | $ | 100,536 | | | $ | 105,807 | | | $ | 102,552 | | | $ | 118,082 | | | $ | 132,688 | | | $ | 109,694 | | |
| Ratios of expenses to average net assets (%) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Before reimbursement of expenses by Adviser (%) | | | 0.49 | 5 | | | 0.49 | | | | 0.50 | | | | 0.49 | | | | 0.49 | | | | 0.49 | 5 | | | 0.49 | | |
After reimbursement of expenses by Adviser (%) | | | 0.49 | 5 | | | 0.49 | | | | 0.50 | | | | 0.49 | | | | 0.49 | | | | 0.49 | 5 | | | – | | |
| Ratio of net investment income to average net assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
After reimbursement of expenses by Adviser (%) | | | 1.54 | 5 | | | 1.32 | | | | 1.10 | | | | 1.00 | | | | 1.00 | | | | 0.99 | 5 | | | 1.15 | | |
| Portfolio turnover (%)7 | | | 18 | 4 | | | 26 | | | | 25 | | | | 35 | | | | 20 | | | | 30 | 4 | | | 29 | | |
| | | CORE BOND FUND |
| | | | |
| | | CLASS A | | CLASS B |
| | | | | | | |
| | | Six Months | | Year Ended October 31, | | Six Months | | Year Ended October 31, |
| | | | | | | | | | | | | | | | |
| | | Ended 4/30/18 | | | | | | | | | | | | | | | | | | | | | | Ended 4/30/18 | | | | | | | | | | | | | | | | | | | | |
| | | (unaudited) | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 | | (unaudited) | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value at beginning of period | | $ | 10.03 | | | $ | 10.20 | | | $ | 10.09 | | | $ | 10.25 | | | $ | 10.21 | | | $ | 10.66 | | | $ | 10.03 | | | $ | 10.21 | | | $ | 10.10 | | | $ | 10.25 | | | $ | 10.22 | | | $ | 10.67 | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income2 | | | 0.10 | | | | 0.20 | | | | 0.20 | | | | 0.19 | | | | 0.22 | | | | 0.26 | | | | 0.07 | | | | 0.14 | | | | 0.13 | | | | 0.11 | | | | 0.14 | | | | 0.18 | |
Net realized and unrealized gain (loss) on investments | | | (0.31 | ) | | | (0.10 | ) | | | 0.21 | | | | (0.05 | ) | | | 0.09 | | | | (0.46 | ) | | | (0.31 | ) | | | (0.12 | ) | | | 0.21 | | | | (0.04 | ) | | | 0.08 | | | | (0.46 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | (0.21 | ) | | | 0.10 | | | | 0.41 | | | | 0.14 | | | | 0.31 | | | | (0.20 | ) | | | (0.24 | ) | | | 0.02 | | | | 0.34 | | | | 0.07 | | | | 0.22 | | | | (0.28 | ) |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | (0.11 | ) | | | (0.22 | ) | | | (0.22 | ) | | | (0.21 | ) | | | (0.22 | ) | | | (0.25 | ) | | | (0.08 | ) | | | (0.15 | ) | | | (0.15 | ) | | | (0.13 | ) | | | (0.14 | ) | | | (0.17 | ) |
Capital gains | | | (0.00 | )6 | | | (0.05 | ) | | | (0.08 | ) | | | (0.09 | ) | | | (0.05 | ) | | | – | | | | (0.00 | )6 | | | (0.05 | ) | | | (0.08 | ) | | | (0.09 | ) | | | (0.05 | ) | | | – | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (0.11 | ) | | | (0.27 | ) | | | (0.30 | ) | | | (0.30 | ) | | | (0.27 | ) | | | (0.25 | ) | | | (0.08 | ) | | | (0.20 | ) | | | (0.23 | ) | | | (0.22 | ) | | | (0.19 | ) | | | (0.17 | ) |
| Net increase (decrease) in net asset value | | | (0.32 | ) | | | (0.17 | ) | | | 0.11 | | | | (0.16 | ) | | | 0.04 | | | | (0.45 | ) | | | (0.32 | ) | | | (0.18 | ) | | | 0.11 | | | | (0.15 | ) | | | 0.03 | | | | (0.45 | ) |
| Net Asset Value at end of period | | $ | 9.71 | | | $ | 10.03 | | | $ | 10.20 | | | $ | 10.09 | | | $ | 10.25 | | | $ | 10.21 | | | $ | 9.71 | | | $ | 10.03 | | | $ | 10.21 | | | $ | 10.10 | | | $ | 10.25 | | | $ | 10.22 | |
| Total Return (%)3 | | | (2.04 | )4 | | | 1.05 | | | | 4.21 | | | | 1.34 | | | | 3.04 | | | | (1.92 | ) | | | (2.40 | )4 | | | 0.20 | | | | 3.43 | | | | 0.69 | | | | 2.18 | | | | (2.65 | ) |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 31,212 | | | $ | 33,738 | | | $ | 34,325 | | | $ | 32,823 | | | $ | 33,973 | | | $ | 40,104 | | | $ | 1,743 | | | $ | 2,004 | | | $ | 2,575 | | | $ | 2,929 | | | $ | 3,445 | | | $ | 4,433 | |
| Ratios of expenses to average net assets (%) | | | 0.90 | 5 | | | 0.90 | | | | 0.91 | | | | 0.90 | | | | 0.90 | | | | 0.90 | | | | 1.65 | 5 | | | 1.65 | | | | 1.66 | | | | 1.65 | | | | 1.65 | | | | 1.65 | |
| Ratio of net investment income to average net assets (%) | | | 2.12 | 5 | | | 2.00 | | | | 2.00 | | | | 1.85 | | | | 2.10 | | | | 2.42 | | | | 1.37 | 5 | | | 1.25 | | | | 1.25 | | | | 1.10 | | | | 1.36 | | | | 1.68 | |
| Portfolio turnover (%)7 | | | 11 | 4 | | | 27 | | | | 39 | | | | 57 | | | | 41 | | | | 24 | | | | 11 | 4 | | | 27 | | | | 39 | | | | 57 | | | | 41 | | | | 24 | |
| * | 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 | 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. |
| See accompanying Notes to Financial Statements. |
| | |
| |
| | 45 |
| Madison Funds | April 30, 2018 |
| |
| |
| Financial Highlights for a Share of Beneficial Interest Outstanding |
| | | CORE BOND FUND - continued |
| | | |
| | | CLASS Y | | | CLASS R6 |
| | | | | | |
| | | Six Months | | Year Ended October 31, | | Six Months | | Year Ended October 31, |
| | | | | | | | | | | | | |
| | | Ended 4/30/18 | | | | | | | | | | | | | | | | | | | | | | Ended 4/30/18 | | | | | | | | | | | | | | | | | | | | |
| | | (unaudited) | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 | | (unaudited) | | 2017 | | 2016 | | 2015 | | 2014 | | 20138 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value at beginning of period | | $ | 9.99 | | | $ | 10.17 | | | $ | 10.07 | | | $ | 10.22 | | | $ | 10.19 | | | $ | 10.64 | | | $ | 10.05 | | | $ | 10.21 | | | $ | 10.09 | | | $ | 10.24 | | | $ | 10.20 | | | $ | 10.53 | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income1 | | | 0.12 | | | | 0.23 | | | | 0.23 | | | | 0.21 | | | | 0.23 | | | | 0.28 | | | | 0.13 | | | | 0.24 | | | | 0.24 | | | | 0.23 | | | | 0.20 | | | | 0.14 | |
Net realized and unrealized gain (loss) on investments | | | (0.31 | ) | | | (0.11 | ) | | | 0.20 | | | | (0.04 | ) | | | 0.09 | | | | (0.45 | ) | | | (0.32 | ) | | | (0.10 | ) | | | 0.21 | | | | (0.06 | ) | | | 0.13 | | | | (0.34 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | (0.19 | ) | | | 0.12 | | | | 0.43 | | | | 0.17 | | | | 0.32 | | | | (0.17 | ) | | | (0.19 | ) | | | 0.14 | | | | 0.45 | | | | 0.17 | | | | 0.33 | | | | (0.20 | ) |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | (0.13 | ) | | | (0.25 | ) | | | (0.25 | ) | | | (0.23 | ) | | | (0.24 | ) | | | (0.28 | ) | | | (0.13 | ) | | | (0.25 | ) | | | (0.25 | ) | | | (0.23 | ) | | | (0.24 | ) | | | (0.13 | ) |
Capital gains | | | (0.00 | )6 | | | (0.05 | ) | | | (0.08 | ) | | | (0.09 | ) | | | (0.05 | ) | | | – | | | | (0.00 | )6 | | | (0.05 | ) | | | (0.08 | ) | | | (0.09 | ) | | | (0.05 | ) | | | – | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (0.13 | ) | | | (0.30 | ) | | | (0.33 | ) | | | (0.32 | ) | | | (0.29 | ) | | | (0.28 | ) | | | (0.13 | ) | | | (0.30 | ) | | | (0.33 | ) | | | (0.32 | ) | | | (0.29 | ) | | | (0.13 | ) |
| Net increase (decrease) in net asset value | | | (0.32 | ) | | | (0.18 | ) | | | 0.10 | | | | (0.15 | ) | | | 0.03 | | | | (0.45 | ) | | | (0.32 | ) | | | (0.16 | ) | | | 0.12 | | | | (0.15 | ) | | | 0.04 | | | | (0.33 | ) |
| Net Asset Value at end of period | | $ | 9.67 | | | $ | 9.99 | | | $ | 10.17 | | | $ | 10.07 | | | $ | 10.22 | | | $ | 10.19 | | | $ | 9.73 | | | $ | 10.05 | | | $ | 10.21 | | | $ | 10.09 | | | $ | 10.24 | | | $ | 10.20 | |
| Total Return (%)2 | | | (1.92 | )4 | | | 1.22 | | | | 4.40 | | | | 1.71 | | | | 3.23 | | | | (1.65 | ) | | | (1.91 | )4 | | | 1.41 | | | | 4.59 | | | | 1.71 | | | | 3.32 | | | | (1.86 | )4 |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 155,213 | | | $ | 170,169 | | | $ | 178,046 | | | $ | 186,414 | | | $ | 187,790 | | | $ | 109,247 | | | $ | 1,590 | | | $ | 1,802 | | | $ | 1,876 | | | $ | 1,693 | | | $ | 10 | | | $ | 10 | |
| Ratios of expenses to average net assets (%) | | | 0.65 | 5 | | | 0.65 | | | | 0.66 | | | | 0.65 | | | | 0.65 | | | | 0.65 | | | | 0.52 | 5 | | | 0.52 | | | | 0.53 | | | | 0.52 | | | | 0.54 | | | | 0.53 | 5 |
| Ratio of net investment income to average net assets (%) | | | 2.37 | 5 | | | 2.25 | | | | 2.25 | | | | 2.10 | | | | 2.30 | | | | 2.64 | | | | 2.50 | 5 | | | 2.38 | | | | 2.38 | | | | 2.24 | | | | 1.99 | | | | 2.71 | 5 |
| Portfolio turnover (%)3 | | | 11 | 4 | | | 27 | | | | 39 | | | | 57 | | | | 41 | | | | 24 | | | | 11 | 4 | | | 27 | | | | 39 | | | | 57 | | | | 41 | | | | 24 | 4 |
| | | CORPORATE BOND FUND* | | HIGH INCOME FUND |
| | | | | |
| | | CLASS Y | | CLASS A |
| | | | | |
| | | Six Months | | Period Ended October 31, | | Year | | Six Months | | Year Ended October 31, |
| | | | | | | | | | | | | | | | | | |
| | | Ended 4/30/18 | | | | | | | | | | | | | | | | | | | | | | Ended | | Ended 4/30/18 | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (unaudited) | | 2017 | | 2016 | | 2015 | | 2014 | | 20137 | | 12/31/12 | | (unaudited) | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value at beginning of period | | $ | 11.65 | | | $ | 11.69 | | | $ | 11.34 | | | $ | 11.49 | | | $ | 11.27 | | | $ | 11.67 | | | $ | 11.27 | | | $ | 6.19 | | | $ | 6.03 | | | $ | 5.93 | | | $ | 6.79 | | | $ | 7.15 | | | $ | 7.15 | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income1 | | | 0.16 | | | | 0.33 | | | | 0.33 | | | | 0.29 | | | | 0.25 | | | | 0.19 | | | | 0.24 | | | | 0.15 | | | | 0.29 | | | | 0.29 | | | | 0.32 | | | | 0.35 | | | | 0.41 | |
Net realized and unrealized gain (loss) on investments | | | (0.46 | ) | | | – | | | | 0.39 | | | | (0.13 | ) | | | 0.22 | | | | (0.38 | ) | | | 0.39 | | | | (0.22 | ) | | | 0.16 | | | | 0.10 | | | | (0.47 | ) | | | – | | | | 0.03 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | (0.30 | ) | | | 0.33 | | | | 0.72 | | | | 0.16 | | | | 0.47 | | | | (0.19 | ) | | | 0.63 | | | | (0.07 | ) | | | 0.45 | | | | 0.39 | | | | (0.15 | ) | | | 0.35 | | | | 0.44 | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | (0.16 | ) | | | (0.33 | ) | | | (0.33 | ) | | | (0.29 | ) | | | (0.25 | ) | | | (0.19 | ) | | | (0.23 | ) | | | (0.15 | ) | | | (0.29 | ) | | | (0.29 | ) | | | (0.32 | ) | | | (0.36 | ) | | | (0.44 | ) |
Capital gains | | | (0.09 | ) | | | (0.04 | ) | | | (0.04 | ) | | | (0.02 | ) | | | – | | | | (0.02 | ) | | | (0.00 | )6 | | | – | | | | – | | | | – | | | | (0.39 | ) | | | (0.35 | ) | | | – | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (0.25 | ) | | | (0.37 | ) | | | (0.37 | ) | | | (0.31 | ) | | | (0.25 | ) | | | (0.21 | ) | | | (0.23 | ) | | | (0.15 | ) | | | (0.29 | ) | | | (0.29 | ) | | | (0.71 | ) | | | (0.71 | ) | | | (0.44 | ) |
| Net increase (decrease) in net asset value | | | (0.55 | ) | | | (0.04 | ) | | | 0.35 | | | | (0.15 | ) | | | 0.22 | | | | (0.40 | ) | | | 0.40 | | | | (0.22 | ) | | | 0.16 | | | | 0.10 | | | | (0.86 | ) | | | (0.36 | ) | | | (0.00 | )6 |
| Net Asset Value at end of period | | $ | 11.10 | | | $ | 11.65 | | | $ | 11.69 | | | $ | 11.34 | | | $ | 11.49 | | | $ | 11.27 | | | $ | 11.67 | | | $ | 5.97 | | | $ | 6.19 | | | $ | 6.03 | | | $ | 5.93 | | | $ | 6.79 | | | $ | 7.15 | |
| Total Return (%)2 | | | (2.55 | )4 | | | 2.97 | | | | 6.45 | | | | 1.40 | | | | 4.21 | | | | (1.58 | )4 | | | 5.72 | | | | (1.17 | )4 | | | 7.61 | | | | 6.91 | | | | (2.29 | ) | | | 5.20 | | | | 6.29 | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 21,062 | | | $ | 21,773 | | | $ | 23,846 | | | $ | 23,545 | | | $ | 27,010 | | | $ | 19,743 | | | $ | 19,813 | | | $ | 19,637 | | | $ | 21,298 | | | $ | 21,403 | | | $ | 23,155 | | | $ | 28,596 | | | $ | 28,530 | |
| Ratios of expenses to average net assets : | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Before reimbursement of expenses by Adviser (%) | | | 0.65 | 5 | | | 0.65 | | | | 0.66 | | | | 0.65 | | | | 0.65 | | | | 0.65 | 5 | | | 0.67 | | | | 1.00 | 5 | | | 1.00 | | | | 1.01 | | | | 1.00 | | | | 1.00 | | | | 1.00 | |
After reimbursement of expenses by Adviser (%) | | | 0.65 | 5 | | | 0.65 | | | | 0.66 | | | | 0.65 | | | | 0.65 | | | | 0.65 | 5 | | | – | | | | 1.00 | 5 | | | 1.00 | | | | 1.01 | | | | 1.00 | | | | 1.00 | | | | 1.00 | |
| Ratio of net investment income to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
After reimbursement of expenses by Adviser (%) | | | 2.91 | 5 | | | 2.88 | | | | 2.86 | | | | 2.55 | | | | 2.22 | | | | 2.05 | 5 | | | 2.04 | | | | 4.89 | 5 | | | 4.72 | | | | 4.98 | | | | 5.12 | | | | 5.05 | | | | 5.63 | |
| Portfolio turnover (%)3 | | | 6 | 4 | | | 23 | | | | 36 | | | | 37 | | | | 31 | | | | 10 | 4 | | | 11 | | | | 18 | 4 | | | 53 | | | | 73 | | | | 28 | | | | 52 | | | | 28 | |
| * | 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. |
| | |
| |
| 46 | |
| Madison Funds | April 30, 2018 |
| |
| |
| Financial Highlights for a Share of Beneficial Interest Outstanding |
| | | HIGH INCOME FUND - continued |
| | | | |
| | | | | | | CLASS B | | | | | | CLASS Y |
| | | | | | | |
| | | Six Months | | Year Ended October 31, | | Six Months | | Year Ended October 31, |
| | | Ended 4/30/18 | | | | | Ended 4/30/18 | | | |
| | | (unaudited) | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 | | (unaudited) | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value at beginning of period | | $ | 6.37 | | | $ | 6.19 | | | $ | 6.08 | | | $ | 6.95 | | | $ | 7.30 | | | $ | 7.26 | | | $ | 6.09 | | | $ | 5.94 | | | $ | 5.86 | | | $ | 6.73 | | | $ | 7.09 | | | $ | 7.10 | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income1 | | | 0.15 | | | | 0.26 | | | | 0.26 | | | | 0.29 | | | | 0.30 | | | | 0.37 | | | | 0.15 | | | | 0.26 | | | | 0.27 | | | | 0.01 | | | | 1.02 | | | | 0.45 | |
Net realized and unrealized gain (loss) on investments | | | (0.25 | ) | | | 0.16 | | | | 0.10 | | | | (0.50 | ) | | | – | | | | 0.03 | | | | (0.22 | ) | | | 0.21 | | | | 0.13 | | | | (0.14 | ) | | | (0.65 | ) | | | 0.01 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | (0.10 | ) | | | 0.42 | | | | 0.36 | | | | (0.21 | ) | | | 0.30 | | | | 0.40 | | | | (0.07 | ) | | | 0.47 | | | | 0.40 | | | | (0.13 | ) | | | 0.37 | | | | 0.46 | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | (0.13 | ) | | | (0.24 | ) | | | (0.25 | ) | | | (0.27 | ) | | | (0.30 | ) | | | (0.36 | ) | | | (0.17 | ) | | | (0.32 | ) | | | (0.32 | ) | | | (0.35 | ) | | | (0.38 | ) | | | (0.47 | ) |
Capital gains | | | – | | | | – | | | | – | | | | (0.39 | ) | | | (0.35 | ) | | | – | | | | – | | | | – | | | | – | | | | (0.39 | ) | | | (0.35 | ) | | | – | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (0.13 | ) | | | (0.24 | ) | | | (0.25 | ) | | | (0.66 | ) | | | (0.65 | ) | | | (0.36 | ) | | | (0.17 | ) | | | (0.32 | ) | | | (0.32 | ) | | | (0.74 | ) | | | (0.73 | ) | | | (0.47 | ) |
| Net increase (decrease) in net asset value | | | (0.23 | ) | | | 0.18 | | | | 0.11 | | | | (0.87 | ) | | | (0.35 | ) | | | 0.04 | | | | (0.24 | ) | | | 0.15 | | | | 0.08 | | | | (0.87 | ) | | | (0.36 | ) | | | (0.01 | ) |
| Net Asset Value at end of period | | $ | 6.14 | | | $ | 6.37 | | | $ | 6.19 | | | $ | 6.08 | | | $ | 6.95 | | | $ | 7.30 | | | $ | 5.85 | | | $ | 6.09 | | | $ | 5.94 | | | $ | 5.86 | | | $ | 6.73 | | | $ | 7.09 | |
| Total Return (%)2 | | | (1.64 | )3 | | | 6.92 | | | | 6.07 | | | | (3.11 | ) | | | 4.47 | | | | 5.60 | | | | (1.18 | )3 | | | 8.06 | | | | 7.15 | | | | (2.00 | ) | | | 5.59 | | | | 6.68 | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 1,282 | | | $ | 1,505 | | | $ | 1,651 | | | $ | 1,685 | | | $ | 2,267 | | | $ | 2,566 | | | $ | 780 | | | $ | 797 | | | $ | 712 | | | $ | 664 | | | $ | 388 | | | $ | 17,449 | |
| Ratios of expenses to average net assets (%) | | | 1.75 | 4 | | | 1.75 | | | | 1.76 | | | | 1.75 | | | | 1.75 | | | | 1.75 | | | | 0.75 | 4 | | | 0.75 | | | | 0.75 | | | | 0.75 | | | | 0.75 | | | | 0.75 | |
| Ratio of net investment income to average net assets (%) | | | 4.14 | 4 | | | 3.97 | | | | 4.23 | | | | 4.36 | | | | 4.30 | | | | 4.89 | | | | 5.14 | 4 | | | 4.97 | | | | 5.20 | | | | 5.39 | | | | 5.36 | | | | 5.95 | |
| Portfolio turnover (%)5 | | | 18 | 3 | | | 53 | | | | 73 | | | | 28 | | | | 52 | | | | 28 | | | | 18 | 3 | | | 53 | | | | 73 | | | | 28 | | | | 52 | | | | 28 | |
| | | DIVERSIFIED INCOME FUND |
| | | | | |
| | | | | | | CLASS A | | | | | | CLASS B |
| | | | | | |
| | | Six Months | | Year Ended October 31, | | Six Months | | Year Ended October 31, |
| | | | | | | | | | | | | | |
| | | Ended 4/30/18 | | | | | | | | | | | | | | | | | | | | | | Ended 4/30/18 | | | | | | | | | | | | | | | | | | | | |
| | | (unaudited) | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 | | (unaudited) | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value at beginning of period | | $ | 15.93 | | | $ | 14.92 | | | $ | 14.75 | | | $ | 14.79 | | | $ | 13.89 | | | $ | 12.54 | | | $ | 16.04 | | | $ | 15.01 | | | $ | 14.83 | | | $ | 14.88 | | | $ | 13.98 | | | $ | 12.61 | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income1 | | | 0.14 | | | | 0.26 | | | | 0.25 | | | | 0.23 | | | | 0.23 | | | | 0.24 | | | | 0.09 | | | | 0.14 | | | | 0.14 | | | | 0.13 | | | | 0.13 | | | | 0.13 | |
Net realized and unrealized gain (loss) on investments | | | (0.07 | ) | | | 1.56 | | | | 0.52 | | | | (0.03 | ) | | | 0.90 | | | | 1.35 | | | | (0.09 | ) | | | 1.58 | | | | 0.53 | | | | (0.04 | ) | | | 0.90 | | | | 1.37 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 0.07 | | | | 1.82 | | | | 0.77 | | | | 0.20 | | | | 1.13 | | | | 1.59 | | | | – | | | | 1.72 | | | | 0.67 | | | | 0.09 | | | | 1.03 | | | | 1.50 | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | (0.15 | ) | | | (0.27 | ) | | | (0.26 | ) | | | (0.24 | ) | | | (0.23 | ) | | | (0.24 | ) | | | (0.09 | ) | | | (0.15 | ) | | | (0.15 | ) | | | (0.14 | ) | | | (0.13 | ) | | | (0.13 | ) |
Capital gains | | | (0.24 | ) | | | (0.54 | ) | | | (0.34 | ) | | | – | | | | – | | | | – | | | | (0.24 | ) | | | (0.54 | ) | | | (0.34 | ) | | | – | | | | – | | | | – | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (0.39 | ) | | | (0.81 | ) | | | (0.60 | ) | | | (0.24 | ) | | | (0.23 | ) | | | (0.24 | ) | | | (0.33 | ) | | | (0.69 | ) | | | (0.49 | ) | | | (0.14 | ) | | | (0.13 | ) | | | (0.13 | ) |
| Net increase (decrease) in net asset value | | | (0.32 | ) | | | 1.01 | | | | 0.17 | | | | (0.04 | ) | | | 0.90 | | | | 1.35 | | | | (0.33 | ) | | | 1.03 | | | | 0.18 | | | | (0.05 | ) | | | 0.90 | | | | 1.37 | |
| Net Asset Value at end of period | | $ | 15.61 | | | $ | 15.93 | | | $ | 14.92 | | | $ | 14.75 | | | $ | 14.79 | | | $ | 13.89 | | | $ | 15.71 | | | $ | 16.04 | | | $ | 15.01 | | | $ | 14.83 | | | $ | 14.88 | | | $ | 13.98 | |
| Total Return (%)2 | | | 0.35 | 3 | | | 12.57 | | | | 5.38 | | | | 1.39 | | | | 8.22 | | | | 12.76 | | | | (0.08 | )3 | | | 11.79 | | | | 4.63 | | | | 0.58 | | | | 7.37 | | | | 11.99 | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 131,369 | | | $ | 137,863 | | | $ | 128,208 | | | $ | 121,026 | | | $ | 119,364 | | | $ | 105,521 | | | $ | 11,346 | | | $ | 12,702 | | | $ | 13,293 | | | $ | 13,442 | | | $ | 14,378 | | | $ | 14,297 | |
| Ratios of expenses to average net assets (%) | | | 1.10 | 4 | | | 1.10 | | | | 1.11 | | | | 1.10 | | | | 1.10 | | | | 1.10 | | | | 1.85 | 4 | | | 1.85 | | | | 1.86 | | | | 1.85 | | | | 1.85 | | | | 1.85 | |
| Ratio of net investment income to average net assets (%) | | | 1.77 | 4 | | | 1.65 | | | | 1.68 | | | | 1.59 | | | | 1.61 | | | | 1.75 | | | | 1.02 | 4 | | | 0.91 | | | | 0.94 | | | | 0.84 | | | | 0.86 | | | | 1.01 | |
| Portfolio turnover (%)5 | | | 13 | 3 | | | 21 | | | | 35 | | | | 25 | | | | 23 | | | | 18 | | | | 13 | 3 | | | 21 | | | | 35 | | | | 25 | | | | 23 | | | | 18 | |
| 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. |
| | |
| |
| | 47 |
| Madison Funds | April 30, 2018 |
| |
| |
| Financial Highlights for a Share of Beneficial Interest Outstanding |
| | | DIVERSIFIED INCOME FUND - continued | |
| | | | | |
| | | | | | | CLASS C | |
| | | | | |
| | | Six Months | | Year Ended October 31, | |
| | | Ended 4/30/18
(unaudited) | | | | |
| | | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 | |
| | | | | | | | | | | | | | | | | | | |
| Net Asset Value at beginning of period | | $ | 16.03 | | | $ | 15.01 | | | $ | 14.83 | | | $ | 14.88 | | | $ | 13.97 | | | $ | 12.61 | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income2 | | | 0.08 | | | | 0.14 | | | | 0.14 | | | | 0.13 | | | | 0.13 | | | | 0.13 | | |
Net realized and unrealized gain (loss) on investments | | | (0.07 | ) | | | 1.57 | | | | 0.53 | | | | (0.04 | ) | | | 0.91 | | | | 1.36 | | |
| | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 0.01 | | | | 1.71 | | | | 0.67 | | | | 0.09 | | | | 1.04 | | | | 1.49 | | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | (0.09 | ) | | | (0.15 | ) | | | (0.15 | ) | | | (0.14 | ) | | | (0.13 | ) | | | (0.13 | ) | |
Capital gains | | | (0.24 | ) | | | (0.54 | ) | | | (0.34 | ) | | | – | | | | – | | | | – | | |
| | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (0.33 | ) | | | (0.69 | ) | | | (0.49 | ) | | | (0.14 | ) | | | (0.13 | ) | | | (0.13 | ) | |
| Net increase (decrease) in net asset value | | | (0.32 | ) | | | 1.02 | | | | 0.18 | | | | (0.05 | ) | | | 0.91 | | | | 1.36 | | |
| Net Asset Value at end of period | | $ | 15.71 | | | $ | 16.03 | | | $ | 15.01 | | | $ | 14.83 | | | $ | 14.88 | | | $ | 13.97 | | |
| Total Return (%)3 | | | (0.02 | )4 | | | 11.72 | | | | 4.63 | | | | 0.64 | | | | 7.38 | | | | 11.91 | | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 14,890 | | | $ | 15,103 | | | $ | 13,498 | | | $ | 12,766 | | | $ | 11,545 | | | $ | 6,732 | | |
| Ratios of expenses to average net assets (%) | | | 1.85 | 5 | | | 1.85 | | | | 1.86 | | | | 1.85 | | | | 1.85 | | | | 1.84 | | |
| Ratio of net investment income to average net assets (%) | | | 1.02 | 5 | | | 0.89 | | | | 0.93 | | | | 0.84 | | | | 0.83 | | | | 0.88 | | |
| Portfolio turnover (%)6 | | | 13 | 4 | | | 21 | | | | 35 | | | | 25 | | | | 23 | | | | 18 | | |
| | | COVERED CALL & EQUITY INCOME FUND1 |
| | | |
| | | | | | | CLASS A | | CLASS C |
| | | | | | |
| | | Six Months | | Year Ended October 31, | | Six Months | | Year Ended October 31, |
| | | Ended 4/30/18 | | | | | Ended 4/30/18 | | |
| | | (unaudited) | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 | | (unaudited) | | 2017 | | 2015 | | 2014 | | 2013 | | 2013 |
| | | | | | | | | | | | | | | | | | | | | | | | | �� | | | | | | | | | | |
| Net Asset Value at beginning of period | | $ | 8.88 | | | $ | 8.95 | | | $ | 9.14 | | | $ | 9.92 | | | $ | 9.99 | | | $ | 9.76 | | | $ | 8.47 | | | $ | 8.63 | | | $ | 8.89 | | | $ | 9.74 | | | $ | 9.89 | | | $ | 9.74 | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income2 | | | 0.02 | | | | 0.07 | | | | 0.05 | | | | 0.06 | | | | 0.08 | | | | 0.02 | | | | (0.12 | ) | | | 0.02 | | | | 0.06 | | | | 0.16 | | | | 0.08 | | | | 0.20 | |
Net realized and unrealized gain (loss) on investments | | | 0.32 | | | | 0.46 | | | | 0.33 | | | | (0.06 | ) | | | 0.77 | | | | 1.12 | | | | 0.41 | | | | 0.42 | | | | 0.24 | | | | (0.23 | ) | | | 0.69 | | | | 0.86 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 0.34 | | | | 0.53 | | | | 0.38 | | | | – | | | | 0.85 | | | | 1.14 | | | | 0.29 | | | | 0.44 | | | | 0.30 | | | | (0.07 | ) | | | 0.77 | | | | 1.06 | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | (0.15 | ) | | | (0.39 | ) | | | (0.41 | ) | | | (0.50 | ) | | | (0.60 | ) | | | (0.60 | ) | | | (0.14 | ) | | | (0.39 | ) | | | (0.40 | ) | | | (0.50 | ) | | | (0.60 | ) | | | (0.60 | ) |
Capital gains | | | (0.29 | ) | | | (0.21 | ) | | | (0.16 | ) | | | (0.28 | ) | | | (0.32 | ) | | | (0.31 | ) | | | (0.29 | ) | | | (0.21 | ) | | | (0.16 | ) | | | (0.28 | ) | | | (0.32 | ) | | | (0.31 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (0.44 | ) | | | (0.60 | ) | | | (0.57 | ) | | | (0.78 | ) | | | (0.92 | ) | | | (0.91 | ) | | | (0.43 | ) | | | (0.60 | ) | | | (0.56 | ) | | | (0.78 | ) | | | (0.92 | ) | | | (0.91 | ) |
| Net increase (decrease) in net asset value | | | (0.10 | ) | | | (0.07 | ) | | | (0.19 | ) | | | (0.78 | ) | | | (0.07 | ) | | | 0.23 | | | | (0.14 | ) | | | (0.16 | ) | | | (0.26 | ) | | | (0.85 | ) | | | (0.15 | ) | | | 0.15 | |
| Net Asset Value at end of period | | $ | 8.78 | | | $ | 8.88 | | | $ | 8.95 | | | $ | 9.14 | | | $ | 9.92 | | | $ | 9.99 | | | $ | 8.33 | | | $ | 8.47 | | | $ | 8.63 | | | $ | 8.89 | | | $ | 9.74 | | | $ | 9.89 | |
| Total Return (%)3 | | | 3.85 | 4 | | | 5.97 | | | | 4.29 | | | | (0.18 | ) | | | 8.90 | | | | 12.29 | | | | 3.47 | 4 | | | 5.09 | | | | 3.53 | | | | (0.83 | ) | | | 8.01 | | | | 11.44 | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 16,109 | | | $ | 16,773 | | | $ | 18,252 | | | $ | 16,042 | | | $ | 11,373 | | | $ | 7,559 | | | $ | 9,494 | | | $ | 13,299 | | | $ | 13,519 | | | $ | 9,287 | | | $ | 4,805 | | | $ | 2,258 | |
| Ratios of expenses to average net assets (%) | | | 1.25 | 5 | | | 1.25 | | | | 1.25 | | | | 1.25 | | | | 1.25 | | | | 1.25 | | | | 2.00 | 5 | | | 2.00 | | | | 2.00 | | | | 1.99 | | | | 2.00 | | | | 2.00 | |
| Ratio of net investment income (loss) to average net assets (%) | | | 0.40 | 5 | | | 1.03 | | | | 0.17 | | | | 0.13 | | | | (0.30 | ) | | | (0.12 | ) | | | (0.35 | )5 | | | 0.28 | | | | (0.58 | ) | | | (0.59 | ) | | | (1.07 | ) | | | (0.91 | ) |
| Portfolio turnover (%)6 | | | 68 | 4 | | | 166 | | | | 135 | | | | 107 | | | | 139 | | | | 100 | | | | 68 | 4 | | | 166 | | | | 135 | | | | 107 | | | | 139 | | | | 100 | |
| 1 | Prior to close of business on February 28, 2014, the Fund was known as the Equity Income Fund. |
| 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. |
| | |
| |
| 48 | |
| Madison Funds | April 30, 2018 |
| |
| |
| Financial Highlights for a Share of Beneficial Interest Outstanding |
| | | COVERED CALL & EQUITY INCOME FUND1 - continued |
| | | |
| | | CLASS Y | | CLASS R6 |
| | | | | |
| | | Six Months | | Year Ended October 31, | | Six Months | | Year Ended October 31, |
| | | Ended 4/30/18 | | | | Ended 4/30/18 | | |
| | | (unaudited) | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 | | (unaudited) | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value at beginning of period | | $ | 9.06 | | | $ | 9.11 | | | $ | 9.27 | | | $ | 10.03 | | | $ | 10.08 | | | $ | 9.82 | | | $ | 9.13 | | | $ | 9.16 | | | $ | 9.31 | | | $ | 10.06 | | | $ | 10.09 | | | $ | 9.82 | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income3 | | | 0.03 | | | | 0.14 | | | | 0.08 | | | | 0.14 | | | | 0.22 | | | | (0.28 | ) | | | 0.03 | | | | 0.14 | | | | 0.07 | | | | 0.24 | | | | 0.13 | | | | 0.04 | |
Net realized and unrealized gain on investments | | | 0.33 | | | | 0.42 | | | | 0.33 | | | | (0.12 | ) | | | 0.67 | | | | 1.45 | | | | 0.33 | | | | 0.44 | | | | 0.35 | | | | (0.21 | ) | | | 0.78 | | | | 1.14 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 0.36 | | | | 0.56 | | | | 0.41 | | | | 0.02 | | | | 0.89 | | | | 1.17 | | | | 0.36 | | | | 0.58 | | | | 0.42 | | | | 0.03 | | | | 0.91 | | | | 1.18 | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | (0.15 | ) | | | (0.40 | ) | | | (0.41 | ) | | | (0.50 | ) | | | (0.62 | ) | | | (0.60 | ) | | | (0.15 | ) | | | (0.40 | ) | | | (0.41 | ) | | | (0.50 | ) | | | (0.62 | ) | | | (0.60 | ) |
Capital gains | | | (0.29 | ) | | | (0.21 | ) | | | (0.16 | ) | | | (0.28 | ) | | | (0.32 | ) | | | (0.31 | ) | | | (0.29 | ) | | | (0.21 | ) | | | (0.16 | ) | | | (0.28 | ) | | | (0.32 | ) | | | (0.31 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (0.44 | ) | | | (0.61 | ) | | | (0.57 | ) | | | (0.78 | ) | | | (0.94 | ) | | | (0.91 | ) | | | (0.44 | ) | | | (0.61 | ) | | | (0.57 | ) | | | (0.78 | ) | | | (0.94 | ) | | | (0.91 | ) |
| Net increase (decrease) in net asset value | | | (0.08 | ) | | | (0.05 | ) | | | (0.16 | ) | | | (0.76 | ) | | | (0.05 | ) | | | 0.26 | | | | (0.08 | ) | | | (0.03 | ) | | | (0.15 | ) | | | (0.75 | ) | | | (0.03 | ) | | | 0.27 | |
| Net Asset Value at end of period | | $ | 8.98 | | | $ | 9.06 | | | $ | 9.11 | | | $ | 9.27 | | | $ | 10.03 | | | $ | 10.08 | | | $ | 9.05 | | | $ | 9.13 | | | $ | 9.16 | | | $ | 9.31 | | | $ | 10.06 | | | $ | 10.09 | |
| Total Return (%)4 | | | 4.06 | 5 | | | 6.15 | | | | 4.63 | | | | 0.13 | | | | 9.08 | | | | 12.60 | | | | 4.03 | 5 | | | 6.34 | | | | 4.72 | | | | 0.23 | | | | 9.29 | | | | 12.75 | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 91,811 | | | $ | 95,640 | | | $ | 71,241 | | | $ | 60,916 | | | $ | 43,891 | | | $ | 29,307 | | | $ | 2,607 | | | $ | 2,531 | | | $ | 3,110 | | | $ | 2,826 | | | $ | 152 | | | $ | 116 | |
| Ratios of expenses to average net assets (%) | | | 1.00 | 6 | | | 1.00 | | | | 1.00 | | | | 1.00 | | | | 1.00 | | | | 1.00 | | | | 0.87 | 6 | | | 0.87 | | | | 0.88 | | | | 0.87 | | | | 0.87 | | | | 0.87 | |
| Ratio of net investment income (loss) to average net assets (%) | | | 0.66 | 6 | | | 1.26 | | | | 0.42 | | | | 0.40 | | | | (0.03 | ) | | | 0.14 | | | | 0.77 | 6 | | | 1.26 | | | | 0.55 | | | | 0.70 | | | | 0.10 | | | | 0.21 | |
| Portfolio turnover (%)7 | | | 68 | 5 | | | 166 | | | | 135 | | | | 107 | | | | 139 | | | | 100 | | | | 68 | 5 | | | 166 | | | | 135 | | | | 107 | | | | 139 | | | | 100 | |
| | | DIVIDEND INCOME FUND* | | LARGE CAP VALUE FUND |
| | | | | |
| | | CLASS Y | | CLASS A |
| | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Six Months
Ended 4/30/18
(unaudited) | | Period Ended October 31, | | Year Ended | | Six Months
Ended 4/30/18
(unaudited) | | Year Ended October 31, |
| | | | | | | | | |
| | | | 2017 | | 2016 | | 2015 | | 2014 | | 20132 | | 12/31/12 | | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value at beginning of period | | $ | 26.18 | | | $ | 22.38 | | | $ | 22.28 | | | $ | 23.59 | | | $ | 21.94 | | | $ | 17.90 | | | $ | 17.17 | | | $ | 15.52 | | | $ | 15.47 | | | $ | 16.33 | | | $ | 19.18 | | | $ | 17.04 | | | $ | 13.99 | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income3 | | | 0.24 | | | | 0.44 | | | | 0.33 | | | | 0.40 | | | | 0.38 | | | | 0.28 | | | | 0.36 | | | | 0.07 | | | | 0.25 | | | | 0.16 | | | | 0.08 | | | | 0.13 | | | | 0.18 | |
Net realized and unrealized gain (loss)on investments | | | 0.26 | | | | 4.34 | | | | 0.99 | | | | 0.01 | | | | 2.29 | | | | 4.03 | | | | 1.50 | | | | 0.84 | | | | 2.05 | | | | 0.92 | | | | (0.10 | ) | | | 2.15 | | | | 3.07 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 0.50 | | | | 4.78 | | | | 1.32 | | | | 0.41 | | | | 2.67 | | | | 4.31 | | | | 1.86 | | | | 0.91 | | | | 2.30 | | | | 1.08 | | | | (0.02 | ) | | | 2.28 | | | | 3.25 | |
Less Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | (0.23 | ) | | | (0.44 | ) | | | (0.32 | ) | | | (0.38 | ) | | | (0.38 | ) | | | (0.27 | ) | | | (0.35 | ) | | | (0.27 | ) | | | (0.18 | ) | | | (0.10 | ) | | | (0.14 | ) | | | (0.14 | ) | | | (0.20 | ) |
Capital gains | | | (0.59 | ) | | | (0.54 | ) | | | (0.90 | ) | | | (1.34 | ) | | | (0.64 | ) | | | – | | | | (0.78 | ) | | | (1.34 | ) | | | (2.07 | ) | | | (1.84 | ) | | | (2.69 | ) | | | – | | | | – | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (0.82 | ) | | | (0.98 | ) | | | (1.22 | ) | | | (1.72 | ) | | | (1.02 | ) | | | (0.27 | ) | | | (1.13 | ) | | | (1.61 | ) | | | (2.25 | ) | | | (1.94 | ) | | | (2.83 | ) | | | (0.14 | ) | | | (0.20 | ) |
| Net increase (decrease) in net asset value | | | (0.32 | ) | | | 3.80 | | | | 0.10 | | | | (1.31 | ) | | | 1.65 | | | | 4.04 | | | | 0.73 | | | | (0.70 | ) | | | 0.05 | | | | (0.86 | ) | | | (2.85 | ) | | | 2.14 | | | | 3.05 | |
| Net Asset Value at end of period | | $ | 25.86 | | | $ | 26.18 | | | $ | 22.38 | | | $ | 22.28 | | | $ | 23.59 | | | $ | 21.94 | | | $ | 17.90 | | | $ | 14.82 | | | $ | 15.52 | | | $ | 15.47 | | | $ | 16.33 | | | $ | 19.18 | | | $ | 17.04 | |
| Total Return (%)4 | | | 1.86 | 5 | | | 21.85 | | | | 6.16 | | | | 1.76 | | | | 12.42 | | | | 24.18 | 5 | | | 10.86 | | | | 5.96 | 5 | | | 16.36 | | | | 7.16 | | | | (0.80 | ) | | | 13.47 | | | | 23.58 | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 109,642 | | | $ | 107,411 | | | $ | 102,402 | | | $ | 20,925 | | | $ | 21,518 | | | $ | 18,658 | | | $ | 13,263 | | | $ | 69,056 | | | $ | 68,522 | | | $ | 62,757 | | | $ | 63,566 | | | $ | 70,495 | | | $ | 67,048 | |
| Ratios of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Before reimbursement of expenses by Adviser (%) | | | 1.10 | 6 | | | 1.10 | | | | 1.10 | | | | 1.10 | | | | 1.10 | | | | 1.10 | 6 | | | 1.17 | | | | 1.16 | 6 | | | 1.16 | | | | 1.17 | | | | 1.16 | | | | 1.16 | | | | 1.16 | |
After reimbursement of expenses by Adviser (%) | | | 0.95 | 6 | | | 0.95 | | | | 0.95 | | | | 0.95 | | | | 0.95 | | | | 0.95 | 6 | | | 1.09 | | | | 1.16 | 6 | | | 1.16 | | | | 1.17 | | | | 1.16 | | | | 1.16 | | | | 1.16 | |
| Ratio of net investment income to average net assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
After reimbursement of expenses by Adviser (%) | | | 1.88 | 6 | | | 1.81 | | | | 1.61 | | | | 1.75 | | | | 1.66 | | | | 1.66 | 6 | | | 1.95 | | | | 0.85 | 6 | | | 1.65 | | | | 1.02 | | | | 0.47 | | | | 0.69 | | | | 1.12 | |
| Portfolio turnover (%)7 | | | 19 | 5 | | | 19 | | | | 33 | | | | 24 | | | | 29 | | | | 16 | 5 | | | 61 | | | | 37 | 5 | | | 86 | | | | 74 | | | | 97 | | | | 85 | | | | 33 | |
| * | 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 | 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. |
| 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. |
| | |
| |
| | 49 |
| Madison Funds | April 30, 2018 |
| |
| |
| Financial Highlights for a Share of Beneficial Interest Outstanding |
| | | LARGE CAP VALUE FUND - continued |
| | | |
| | | CLASS B | | CLASS Y |
| | | | | |
| | | Six Months | | Year Ended October 31, | | Six Months | | Year Ended October 31, |
| | | Ended 4/30/18 | | | | Ended 4/30/18 | | |
| | | (unaudited) | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 | | (unaudited) | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value at beginning of period | | $ | 15.10 | | | $ | 15.09 | | | $ | 16.01 | | | $ | 18.84 | | | $ | 16.74 | | | $ | 13.74 | | | $ | 15.53 | | | $ | 15.48 | | | $ | 16.35 | | | $ | 19.20 | | | $ | 17.06 | | | $ | 14.01 | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income2 | | | 0.02 | | | | 0.16 | | | | 0.06 | | | | (0.05 | ) | | | 0.04 | | | | 0.12 | | | | 0.06 | | | | 0.37 | | | | 0.26 | | | | 0.14 | | | | 0.19 | | | | 0.19 | |
Net realized and unrealized gain (loss) on investments | | | 0.81 | | | | 1.98 | | | | 0.88 | | | | (0.09 | ) | | | 2.07 | | | | 2.98 | | | | 0.87 | | | | 1.97 | | | | 0.85 | | | | (0.11 | ) | | | 2.14 | | | | 3.10 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 0.83 | | | | 2.14 | | | | 0.94 | | | | (0.14 | ) | | | 2.11 | | | | 3.10 | | | | 0.93 | | | | 2.34 | | | | 1.11 | | | | 0.03 | | | | 2.33 | | | | 3.29 | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | (0.15 | ) | | | (0.06 | ) | | | (0.02 | ) | | | 0.00 | 6 | | | (0.01 | ) | | | (0.10 | ) | | | (0.31 | ) | | | (0.22 | ) | | | (0.14 | ) | | | (0.19 | ) | | | (0.19 | ) | | | (0.24 | ) |
Capital gains | | | (1.34 | ) | | | (2.07 | ) | | | (1.84 | ) | | | (2.69 | ) | | | – | | | | – | | | | (1.34 | ) | | | (2.07 | ) | | | (1.84 | ) | | | (2.69 | ) | | | – | | | | – | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (1.49 | ) | | | (2.13 | ) | | | (1.86 | ) | | | (2.69 | ) | | | (0.01 | ) | | | (0.10 | ) | | | (1.65 | ) | | | (2.29 | ) | | | (1.98 | ) | | | (2.88 | ) | | | (0.19 | ) | | | (0.24 | ) |
| Net increase (decrease) in net asset value | | | (0.66 | ) | | | 0.01 | | | | (0.92 | ) | | | (2.83 | ) | | | 2.10 | | | | 3.00 | | | | (0.72 | ) | | | 0.05 | | | | (0.87 | ) | | | (2.85 | ) | | | 2.14 | | | | 3.05 | |
| Net Asset Value at end of period | | $ | 14.44 | | | $ | 15.10 | | | $ | 15.09 | | | $ | 16.01 | | | $ | 18.84 | | | $ | 16.74 | | | $ | 14.81 | | | $ | 15.53 | | | $ | 15.48 | | | $ | 16.35 | | | $ | 19.20 | | | $ | 17.06 | |
| Total Return (%)3 | | | 5.56 | 4 | | | 15.43 | | | | 6.38 | | | | (1.49 | ) | | | 12.61 | | | | 22.69 | | | | 6.10 | 4 | | | 16.60 | | | | 7.44 | | | | (0.51 | ) | | | 13.74 | | | | 23.86 | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 3,112 | | | $ | 3,318 | | | $ | 3,586 | | | $ | 4,096 | | | $ | 4,867 | | | $ | 5,222 | | | $ | 26,280 | | | $ | 19,187 | | | $ | 36,721 | | | $ | 109,546 | | | $ | 128,456 | | | $ | 132,206 | |
| Ratios of expenses to average net assets (%) | | | 1.91 | 5 | | | 1.91 | | | | 1.92 | | | | 1.91 | | | | 1.91 | | | | 1.91 | | | | 0.91 | 5 | | | 0.91 | | | | 0.92 | | | | 0.91 | | | | 0.91 | | | | 0.91 | |
| Ratio of net investment income (loss) to average net assets (%) | | | 0.09 | 5 | | | 0.88 | | | | 0.27 | | | | (0.27 | ) | | | (0.06 | ) | | | 0.40 | | | | 1.14 | 5 | | | 1.74 | | | | 1.33 | | | | 0.73 | | | | 0.92 | | | | 1.33 | |
| Portfolio turnover (%)7 | | | 37 | 4 | | | 86 | | | | 74 | | | | 97 | | | | 85 | | | | 33 | | | | 37 | 4 | | | 86 | | | | 74 | | | | 97 | | | | 85 | | | | 33 | |
| | | INVESTORS FUND* |
| | | |
| | | CLASS A | | CLASS Y |
| | | | | |
| | | Six Months | | Year Ended October 31, | | Inception | | Six Months | | Period Ended October 31, | | Year |
| | | Ended 4/30/18 | | | | to | | Ended 4/30/18 | | | | Ended |
| | | (unaudited) | | 2017 | | 2016 | | 2015 | | 2014 | | 10/31/131 | | (unaudited) | | 2017 | | 2016 | | 2015 | | 2014 | | 20138 | | 12/31/12 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value at beginning of period | | $ | 23.22 | | | $ | 19.57 | | | $ | 21.30 | | | $ | 25.01 | | | $ | 22.49 | | | $ | 22.06 | | | $ | 23.29 | | | $ | 19.62 | | | $ | 21.36 | | | $ | 25.07 | | | $ | 22.50 | | | $ | 18.56 | | | $ | 16.40 | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income2 | | | 0.04 | | | | 0.03 | | | | (0.00 | )6,9 | | | 0.09 | | | | 0.03 | | | | – | | | | 0.07 | | | | 0.09 | | | | 0.06 | 9 | | | 0.16 | | | | 0.12 | | | | 0.10 | | | | 0.13 | |
Net realized and unrealized gain (loss) on investments | | | 0.49 | | | | 4.23 | | | | 1.18 | | | | 1.06 | | | | 3.18 | | | | 0.43 | | | | 0.49 | | | | 4.24 | | | | 1.17 | | | | 1.05 | | | | 3.15 | | | | 3.94 | | | | 2.17 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 0.53 | | | | 4.26 | | | | 1.18 | | | | 1.15 | | | | 3.21 | | | | 0.43 | | | | 0.56 | | | | 4.33 | | | | 1.23 | | | | 1.21 | | | | 3.27 | | | | 4.04 | | | | 2.30 | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | (0.03 | ) | | | – | | | | (0.12 | ) | | | (0.06 | ) | | | (0.01 | ) | | | – | | | | (0.09 | ) | | | (0.05 | ) | | | (0.18 | ) | | | (0.12 | ) | | | (0.02 | ) | | | (0.10 | ) | | | (0.14 | ) |
Capital gains | | | (1.26 | ) | | | (0.61 | ) | | | (2.79 | ) | | | (4.80 | ) | | | (0.68 | ) | | | – | | | | (1.26 | ) | | | (0.61 | ) | | | (2.79 | ) | | | (4.80 | ) | | | (0.68 | ) | | | – | | | | – | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (1.29 | ) | | | (0.61 | ) | | | (2.91 | ) | | | (4.86 | ) | | | (0.69 | ) | | | – | | | | (1.35 | ) | | | (0.66 | ) | | | (2.97 | ) | | | (4.92 | ) | | | (0.70 | ) | | | (0.10 | ) | | | (0.14 | ) |
| Net increase (decrease) in net asset value | | | (0.76 | ) | | | 3.65 | | | | (1.73 | ) | | | (3.71 | ) | | | 2.52 | | | | 0.43 | | | | (0.79 | ) | | | 3.67 | | | | (1.74 | ) | | | (3.71 | ) | | | 2.57 | | | | 3.94 | | | | 2.16 | |
| Net Asset Value at end of period | | $ | 22.46 | | | $ | 23.22 | | | $ | 19.57 | | | $ | 21.30 | | | $ | 25.01 | | | $ | 22.49 | | | $ | 22.50 | | | $ | 23.29 | | | $ | 19.62 | | | $ | 21.36 | | | $ | 25.07 | | | $ | 22.50 | | | $ | 18.56 | |
| Total Return (%)3 | | | 2.17 | 4 | | | 22.30 | | | | 6.46 | | | | 4.78 | | | | 14.55 | | | | 1.95 | 4 | | | 2.30 | 4 | | | 22.62 | | | | 6.69 | | | | 5.07 | | | | 14.84 | | | | 21.78 | 4 | | | 14.05 | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 75,969 | | | $ | 77,891 | | | $ | 67,479 | | | $ | 2,189 | | | $ | 1,340 | | | $ | 280 | | | $ | 205,826 | | | $ | 222,363 | | | $ | 204,962 | | | $ | 109,506 | | | $ | 166,819 | | | $ | 196,164 | | | $ | 35,176 | |
| Ratios of expenses to average net assets: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Before reimbursement of expenses by Adviser (%) | | | 1.20 | 5 | | | 1.20 | | | | 1.20 | | | | 1.31 | | | | 1.28 | | | | 1.20 | 5 | | | 0.95 | 5 | | | 0.95 | | | | 0.98 | | | | 1.06 | | | | 1.02 | | | | 1.04 | 5 | | | 1.05 | |
After reimbursement of expenses by Adviser (%) | | | 1.20 | 5 | | | 1.20 | | | | 1.20 | | | | 1.19 | | | | 1.13 | | | | 1.06 | 5 | | | 0.95 | 5 | | | 0.95 | | | | 0.95 | | | | 0.94 | | | | 0.87 | | | | 0.89 | 5 | | | 0.97 | |
Ratio of net investment income to average net assets | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
After reimbursement of expenses by Adviser (%) | | | 0.36 | 5 | | | 0.14 | | | | (0.01 | ) | | | 0.38 | | | | 0.15 | | | | (0.22 | )5 | | | 0.61 | 5 | | | 0.39 | | | | 0.33 | | | | 0.62 | | | | 0.43 | | | | 0.41 | 5 | | | 0.75 | |
| Portfolio turnover (%)7 | | | 22 | 4 | | | 33 | | | | 27 | | | | 33 | | | | 52 | | | | 34 | 4 | | | 22 | 4 | | | 33 | | | | 27 | | | | 33 | | | | 52 | | | | 34 | 4 | | | 47 | |
| * | 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. |
| | |
| |
| 50 | |
| Madison Funds | April 30, 2018 |
| |
| |
| Financial Highlights for a Share of Beneficial Interest Outstanding |
| | | INVESTORS FUND* - continued | | MID CAP FUND* |
| | | | | |
| | | CLASS R6 | | CLASS A |
| | | | | |
| | | Six Months | | Year Ended October 31, | | Inception | | Six Months | | Year Ended October 31, | | Inception |
| | | Ended 4/30/18 | | | | to | | Ended 4/30/18 | | | | to |
| | | (unaudited) | | 2017 | | 2016 | | 2015 | | 2014 | | 10/31/131 | | (unaudited) | | 2017 | | 2016 | | 2015 | | 2014 | | 10/31/137 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value at beginning of period | | $ | 23.44 | | | $ | 19.74 | | | $ | 21.47 | | | $ | 25.14 | | | $ | 22.51 | | | $ | 22.06 | | | $ | 9.37 | | | $ | 8.34 | | | $ | 8.59 | | | $ | 9.78 | | | $ | 9.48 | | | $ | 8.41 | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income2 | | | 0.10 | | | | 0.13 | | | | 0.11 | 11 | | | 0.15 | | | | 0.17 | | | | – | | | | (0.03 | ) | | | (0.05 | ) | | | (0.04 | ) | | | (0.06 | ) | | | (0.04 | ) | | | (0.03 | ) |
Net realized and unrealized gain on investments | | | 0.49 | | | | 4.26 | | | | 1.17 | | | | 1.10 | | | | 3.16 | | | | 0.45 | | | | 0.37 | | | | 1.46 | | | | 0.29 | | | | 0.61 | | | | 1.01 | | | | 1.10 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 0.59 | | | | 4.39 | | | | 1.28 | | | | 1.25 | | | | 3.33 | | | | 0.45 | | | | 0.34 | | | | 1.41 | | | | 0.25 | | | | 0.55 | | | | 0.97 | | | | 1.07 | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | (0.14 | ) | | | (0.08 | ) | | | (0.22 | ) | | | (0.12 | ) | | | (0.02 | ) | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | |
Capital gains | | | (1.26 | ) | | | (0.61 | ) | | | (2.79 | ) | | | (4.80 | ) | | | (0.68 | ) | | | – | | | | (0.35 | ) | | | (0.38 | ) | | | (0.50 | ) | | | (1.74 | ) | | | (0.67 | ) | | | – | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (1.40 | ) | | | (0.69 | ) | | | (3.01 | ) | | | (4.92 | ) | | | (0.70 | ) | | | – | | | | (0.35 | ) | | | (0.38 | ) | | | (0.50 | ) | | | (1.74 | ) | | | (0.67 | ) | | | – | |
| Net increase (decrease) in net asset value | | | (0.81 | ) | | | 3.70 | | | | (1.73 | ) | | | (3.67 | ) | | | 2.63 | | | | 0.45 | | | | (0.01 | ) | | | 1.03 | | | | (0.25 | ) | | | (1.19 | ) | | | 0.30 | | | | 1.07 | |
| Net Asset Value at end of period | | $ | 22.63 | | | $ | 23.44 | | | $ | 19.74 | | | $ | 21.47 | | | $ | 25.14 | | | $ | 22.51 | | | $ | 9.36 | | | $ | 9.37 | | | $ | 8.34 | | | $ | 8.59 | | | $ | 9.78 | | | $ | 9.48 | |
| Total Return (%)3 | | | 2.39 | 4 | | | 22.87 | | | | 6.92 | | | | 5.25 | | | | 15.10 | | | | 2.04 | 4 | | | 3.61 | 4 | | | 17.40 | | | | 3.12 | | | | 5.80 | | | | 10.65 | | | | 12.72 | 4 |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 6,239 | | | $ | 6,898 | | | $ | 6,198 | | | $ | 6,589 | | | $ | 5,200 | | | $ | 7,234 | | | $ | 58,471 | | | $ | 59,175 | | | $ | 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 | | | | 0.77 | | | | 0.73 | | | | 0.69 | | | | 0.65 | 5 | | | 1.40 | 5 | | | 1.40 | | | | 1.41 | | | | 1.40 | | | | 1.40 | | | | 1.40 | 5 |
After reimbursement of expenses by Adviser (%) | | | 0.77 | 5 | | | 0.77 | | | | 0.77 | | | | 0.73 | | | | 0.64 | | | | 0.56 | 5 | | | 1.40 | 5 | | | 1.40 | | | | 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 (%) | | | 0.77 | 5 | | | 0.56 | | | | 0.57 | | | | 0.83 | | | | 0.65 | | | | 0.23 | 5 | | | (0.52 | )5 | | | (0.53 | ) | | | (0.47 | ) | | | (0.72 | ) | | | (0.42 | ) | | | (0.64 | )5 |
| Portfolio turnover (%)6 | | | 22 | 4 | | | 33 | | | | 27 | | | | 33 | | | | 52 | | | | 34 | 4 | | | 13 | 4 | | | 22 | | | | 27 | | | | 28 | | | | 33 | | | | 21 | 4 |
| | | MID CAP FUND* |
| | | |
| | | CLASS B | | CLASS Y |
| | | | | |
| | | Six Months | | Year Ended October 31, | | Inception | | Six Months | | Year Ended October 31, | | Period |
| | | Ended 4/30/18 | | | | to | | Ended 4/30/18 | | | | Ended |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | (unaudited) | | 2017 | | 2016 | | 2015 | | 2014 | | 10/31/137 | | (unaudited) | | 2017 | | 2016 | | 2015 | | 2014 | | 20138 | | 12/31/129 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value at beginning of period | | $ | 7.78 | | | $ | 7.04 | | | $ | 7.38 | | | $ | 8.69 | | | $ | 8.55 | | | $ | 7.62 | | | $ | 9.76 | | | $ | 8.64 | | | $ | 8.85 | | | $ | 10.00 | | | $ | 9.66 | | | $ | 8.31 | | | $ | 7.45 | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)2 | | | (0.13 | ) | | | (0.20 | ) | | | (0.14 | ) | | | (0.13 | ) | | | (0.14 | ) | | | (0.06 | ) | | | 0.00 | 10 | | | (0.01 | ) | | | 0.00 | 10 | | | (0.04 | ) | | | (0.02 | ) | | | (0.02 | ) | | | – | |
Net realized and unrealized gain (loss) on investments | | | 0.38 | | | | 1.32 | | | | 0.30 | | | | 0.56 | | | | 0.95 | | | | 0.99 | | | | 0.37 | | | | 1.51 | | | | 0.29 | | | | 0.63 | | | | 1.03 | | | | 2.11 | | | | 1.17 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 0.25 | | | | 1.12 | | | | 0.16 | | | | 0.43 | | | | 0.81 | | | | 0.93 | | | | 0.37 | | | | 1.50 | | | | 0.29 | | | | 0.59 | | | | 1.01 | | | | 2.09 | | | | 1.17 | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Capital gains | | | (0.35 | ) | | | (0.38 | ) | | | (0.50 | ) | | | (1.74 | ) | | | (0.67 | ) | | | – | | | | (0.35 | ) | | | (0.38 | ) | | | (0.50 | ) | | | (1.74 | ) | | | (0.67 | ) | | | (0.74 | ) | | | (0.31 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (0.35 | ) | | | (0.38 | ) | | | (0.50 | ) | | | (1.74 | ) | | | (0.67 | ) | | | – | | | | (0.35 | ) | | | (0.38 | ) | | | (0.50 | ) | | | (1.74 | ) | | | (0.67 | ) | | | (0.74 | ) | | | (0.31 | ) |
| Net increase (decrease) in net asset value | | | (0.10 | ) | | | 0.74 | | | | (0.34 | ) | | | (1.31 | ) | | | 0.14 | | | | 0.93 | | | | 0.02 | | | | 1.12 | | | | (0.21 | ) | | | (1.15 | ) | | | 0.34 | | | | 1.35 | | | | 0.86 | |
| Net Asset Value at end of period | | $ | 7.68 | | | $ | 7.78 | | | $ | 7.04 | | | $ | 7.38 | | | $ | 8.69 | | | $ | 8.55 | | | $ | 9.78 | | | $ | 9.76 | | | $ | 8.64 | | | $ | 8.85 | | | $ | 10.00 | | | $ | 9.66 | | | $ | 8.31 | |
| Total Return (%)3 | | | 3.18 | 4 | | | 16.46 | | | | 2.38 | | | | 5.06 | | | | 9.89 | | | | 12.20 | 4 | | | 3.78 | 4 | | | 17.85 | | | | 3.50 | | | | 6.13 | | | | 10.88 | | | | 22.68 | 4 | | | 15.69 | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 2,241 | | | $ | 2,550 | | | $ | 2,832 | | | $ | 3,401 | | | $ | 4,235 | | | $ | 5,476 | | | $ | 273,935 | | | $ | 270,989 | | | $ | 242,308 | | | $ | 198,605 | | | $ | 224,181 | | | $ | 255,263 | | | $ | 168,428 | |
| Ratios of expenses to average net assets (%) | | | 2.15 | 5 | | | 2.15 | | | | 2.16 | | | | 2.15 | | | | 2.15 | | | | 2.15 | 5 | | | 0.98 | 5 | | | 0.98 | | | | 1.08 | | | | 1.15 | | | | 1.15 | | | | 1.15 | 5 | | | 1.20 | |
| Ratio of net investment income (loss) to average net assets (%) | | | (1.27 | )5 | | | (1.28 | ) | | | (1.23 | ) | | | (1.47 | ) | | | (1.19 | ) | | | (1.39 | )5 | | | (0.10 | )5 | | | (0.11 | ) | | | (0.14 | ) | | | (0.47 | ) | | | (0.17 | ) | | | (0.29 | )5 | | | 0.00 | |
| Portfolio turnover (%)6 | | | 13 | 4 | | | 22 | | | | 27 | | | | 28 | | | | 33 | | | | 21 | 4 | | | 13 | 4 | | | 22 | | | | 27 | | | | 28 | | | | 33 | | | | 21 | 4 | | | 28 | |
| * | 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. |
| 11 | Per share net investment income has been calculated using the average shares outstanding during the period. |
| See accompanying Notes to Financial Statements. |
| | |
| |
| | 51 |
| Madison Funds | April 30, 2018 |
| |
| |
| Financial Highlights for a Share of Beneficial Interest Outstanding |
| | | MID CAP FUND* - continued | | SMALL CAP FUND |
| | | | | |
| | | CLASS R6 | | CLASS A |
| | | | | |
| | | Six Months | | Period Ended October 31, | | Period | | Six Months | | Year Ended October 31, |
| | | Ended 4/30/18 | | | | Ended | | Ended 4/30/18 | | |
| | | (unaudited) | | 2017 | | 2016 | | 2015 | | 2014 | | 20131 | | 12/31/122,3 | | (unaudited) | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value at beginning of period | | $ | 9.94 | | | $ | 8.77 | | | $ | 8.95 | | | $ | 10.06 | | | $ | 9.68 | | | $ | 8.30 | | | $ | 7.42 | | | $ | 16.96 | | | $ | 14.58 | | | $ | 14.98 | | | $ | 15.21 | | | $ | 14.87 | | | $ | 11.81 | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)4 | | | 0.00 | 9 | | | 0.01 | | | | 0.02 | | | | (0.05 | ) | | | 0.02 | | | | 0.01 | | | | 0.08 | | | | 0.01 | | | | 0.11 | | | | 0.04 | | | | 0.02 | | | | 0.06 | | | | 0.02 | |
Net realized and unrealized gain on investments | | | 0.38 | | | | 1.54 | | | | 0.30 | | | | 0.68 | | | | 1.03 | | | | 2.11 | | | | 1.12 | | | | (0.08 | ) | | | 2.79 | | | | 0.11 | | | | 0.58 | | | | 0.88 | | | | 3.68 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 0.38 | | | | 1.55 | | | | 0.32 | | | | 0.63 | | | | 1.05 | | | | 2.12 | | | | 1.20 | | | | (0.07 | ) | | | 2.90 | | | | 0.15 | | | | 0.60 | | | | 0.94 | | | | 3.70 | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | – | | | | – | | | | – | | | | – | | | | – | | | | – | | | | (0.01 | ) | | | (0.13 | ) | | | (0.02 | ) | | | (0.02 | ) | | | (0.04 | ) | | | – | | | | (0.09 | ) |
Capital gains | | | (0.35 | ) | | | (0.38 | ) | | | (0.50 | ) | | | (1.74 | ) | | | (0.67 | ) | | | (0.74 | ) | | | (0.31 | ) | | | (1.16 | ) | | | (0.50 | ) | | | (0.53 | ) | | | (0.79 | ) | | | (0.60 | ) | | | (0.55 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (0.35 | ) | | | (0.38 | ) | | | (0.50 | ) | | | (1.74 | ) | | | (0.67 | ) | | | (0.74 | ) | | | (0.32 | ) | | | (1.29 | ) | | | (0.52 | ) | | | (0.55 | ) | | | (0.83 | ) | | | (0.60 | ) | | | (0.64 | ) |
| Net increase (decrease) in net asset value | | | 0.03 | | | | 1.17 | | | | (0.18 | ) | | | (1.11 | ) | | | 0.38 | | | | 1.38 | | | | 0.88 | | | | (1.36 | ) | | | 2.38 | | | | (0.40 | ) | | | (0.23 | ) | | | 0.34 | | | | 3.06 | |
| Net Asset Value at end of period | | $ | 9.97 | | | $ | 9.94 | | | $ | 8.77 | | | $ | 8.95 | | | $ | 10.06 | | | $ | 9.68 | | | $ | 8.30 | | | $ | 15.60 | | | $ | 16.96 | | | $ | 14.58 | | | $ | 14.98 | | | $ | 15.21 | | | $ | 14.87 | |
| Total Return (%)5 | | | 3.81 | 6 | | | 18.17 | | | | 3.81 | | | | 6.55 | | | | 11.29 | | | | 23.05 | 6 | | | 7.34 | 6 | | | (0.64 | )6 | | | 19.94 | | | | 1.00 | | | | 3.90 | | | | 6.45 | | | | 32.85 | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 11,935 | | | $ | 11,713 | | | $ | 8,792 | | | $ | 9,874 | | | $ | 5,118 | | | $ | 6,270 | | | $ | 4,856 | | | $ | 3,545 | | | $ | 3,890 | | | $ | 3,168 | | | $ | 3,435 | | | $ | 3,639 | | | $ | 4,566 | |
| Ratios of expenses to average net assets (%) | | | 0.77 | 7 | | | 0.77 | | | | 0.78 | | | | 0.77 | | | | 0.77 | | | | 0.77 | 7 | | | 0.76 | 7 | | | 1.50 | 7 | | | 1.50 | | | | 1.51 | | | | 1.50 | | | | 1.50 | | | | 1.50 | |
| Ratio of net investment income (loss) to average net assets (%) | | | 0.11 | 7 | | | 0.10 | | | | 0.16 | | | | (0.09 | ) | | | 0.20 | | | | 0.11 | 7 | | | 1.19 | 7 | | | 0.19 | 7 | | | 0.68 | | | | 0.24 | | | | 0.09 | | | | 0.35 | | | | 0.14 | |
| Portfolio turnover (%)8 | | | 13 | 6 | | | 22 | | | | 27 | | | | 28 | | | | 33 | | | | 21 | 6 | | | 28 | 6 | | | 8 | 6 | | | 20 | | | | 19 | | | | 19 | | | | 29 | | | | 22 | |
| | | SMALL CAP FUND |
| | | |
| | | CLASS B | | CLASS Y |
| | | | | |
| | | Six Months | | Year Ended October 31, | | Six Months | | Year Ended October 31, |
| | | Ended 4/30/18 | | | | Ended 4/30/18 | | |
| | | (unaudited) | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 | | (unaudited) | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value at beginning of period | | $ | 15.87 | | | $ | 13.75 | | | $ | 14.25 | | | $ | 14.58 | | | $ | 14.38 | | | $ | 11.45 | | | $ | 17.02 | | | $ | 14.63 | | | $ | 15.03 | | | $ | 15.26 | | | $ | 14.88 | | | $ | 11.82 | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss)4 | | | (0.06 | ) | | | (0.05 | ) | | | (0.10 | ) | | | (0.14 | ) | | | (0.05 | ) | | | (0.06 | ) | | | 0.04 | | | | 0.18 | | | | 0.07 | | | | 0.04 | | | | 0.07 | | | | 0.02 | |
Net realized and unrealized gain on investments | | | (0.05 | ) | | | 2.67 | | | | 0.13 | | | | 0.60 | | | | 0.85 | | | | 3.56 | | | | (0.07 | ) | | | 2.78 | | | | 0.10 | | | | 0.60 | | | | 0.91 | | | | 3.71 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | (0.11 | ) | | | 2.62 | | | | 0.03 | | | | 0.46 | | | | 0.80 | | | | 3.50 | | | | (0.03 | ) | | | 2.96 | | | | 0.17 | | | | 0.64 | | | | 0.98 | | | | 3.73 | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | (0.01 | ) | | | – | | | | – | | | | – | | | | – | | | | (0.02 | ) | | | (0.18 | ) | | | (0.07 | ) | | | (0.04 | ) | | | (0.08 | ) | | | (0.00 | )9 | | | (0.12 | ) |
Capital gains | | | (1.16 | ) | | | (0.50 | ) | | | (0.53 | ) | | | (0.79 | ) | | | (0.60 | ) | | | (0.55 | ) | | | (1.16 | ) | | | (0.50 | ) | | | (0.53 | ) | | | (0.79 | ) | | | (0.60 | ) | | | (0.55 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (1.17 | ) | | | (0.50 | ) | | | (0.53 | ) | | | (0.79 | ) | | | (0.60 | ) | | | (0.57 | ) | | | (1.34 | ) | | | (0.57 | ) | | | (0.57 | ) | | | (0.87 | ) | | | (0.60 | ) | | | (0.67 | ) |
| Net increase (decrease) in net asset value | | | (1.28 | ) | | | 2.12 | | | | (0.50 | ) | | | (0.33 | ) | | | 0.20 | | | | 2.93 | | | | (1.37 | ) | | | 2.39 | | | | (0.40 | ) | | | (0.23 | ) | | | 0.38 | | | | 3.06 | |
| Net Asset Value at end of period | | $ | 14.59 | | | $ | 15.87 | | | $ | 13.75 | | | $ | 14.25 | | | $ | 14.58 | | | $ | 14.38 | | | $ | 15.65 | | | $ | 17.02 | | | $ | 14.63 | | | $ | 15.03 | | | $ | 15.26 | | | $ | 14.88 | |
| Total Return (%)5 | | | (0.97 | )6 | | | 19.06 | | | | 0.21 | | | | 3.10 | | | | 5.66 | | | | 31.92 | | | | (0.44 | )6 | | | 20.25 | | | | 1.18 | | | | 4.16 | | | | 6.72 | | | | 33.17 | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 364 | | | $ | 416 | | | $ | 392 | | | $ | 437 | | | $ | 522 | | | $ | 497 | | | $ | 84,115 | | | $ | 90,637 | | | $ | 91,448 | | | $ | 83,728 | | | $ | 60,279 | | | $ | 45,217 | |
| Ratios of expenses to average net assets (%) | | | 2.25 | 7 | | | 2.25 | | | | 2.26 | | | | 2.25 | | | | 2.25 | | | | 2.25 | | | | 1.25 | 7 | | | 1.25 | | | | 1.26 | | | | 1.25 | | | | 1.25 | | | | 1.25 | |
| Ratio of net investment income (loss) to average net assets (%) | | | (0.55 | )7 | | | (0.07 | ) | | | (0.51 | ) | | | (0.66 | ) | | | (0.40 | ) | | | (0.62 | ) | | | 0.45 | 7 | | | 0.95 | | | | 0.49 | | | | 0.32 | | | | 0.59 | | | | 0.28 | |
| Portfolio turnover (%)8 | | | 8 | 6 | | | 20 | | | | 19 | | | | 19 | | | | 29 | | | | 22 | | | | 8 | 6 | | | 20 | | | | 19 | | | | 19 | | | | 29 | | | | 22 | |
| * | 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. |
| | |
| |
| 52 | |
| Madison Funds | April 30, 2018 |
| |
| |
| Financial Highlights for a Share of Beneficial Interest Outstanding |
| | | INTERNATIONAL STOCK FUND |
| | | |
| | | CLASS A | | CLASS B |
| | | | | |
| | | Six Months | | Year Ended October 31, | | Six Months | | Year Ended October 31, |
| | | | | | | | | | | | | |
| | | Ended 4/30/18 | | | | | | | | | | | | | | | | | | | | | | Ended 4/30/18 | | | | | | | | | | | | | | | | | | | | |
| | | (unaudited) | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 | | (unaudited) | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Asset Value at beginning of period | | $ | 14.00 | | | $ | 12.03 | | | $ | 12.99 | | | $ | 13.20 | | | $ | 13.16 | | | $ | 10.81 | | | $ | 13.63 | | | $ | 11.73 | | | $ | 12.68 | | | $ | 12.89 | | | $ | 12.87 | | | $ | 10.58 | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income1 | | | 0.06 | | | | 0.10 | | | | 0.12 | | | | 0.12 | | | | 0.16 | | | | 0.13 | | | | (0.00 | )6 | | | 0.00 | 6 | | | 0.03 | | | | 0.03 | | | | 0.10 | | | | 0.07 | |
Net realized and unrealized gain (loss) on investments | | | 0.34 | | | | 2.01 | | | | (0.97 | ) | | | (0.02 | ) | | | (0.02 | ) | | | 2.35 | | | | 0.34 | | | | 1.97 | | | | (0.95 | ) | | | (0.03 | ) | | | (0.06 | ) | | | 2.28 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 0.40 | | | | 2.11 | | | | (0.85 | ) | | | 0.10 | | | | 0.14 | | | | 2.48 | | | | 0.34 | | | | 1.97 | | | | (0.92 | ) | | | – | | | | 0.04 | | | | 2.35 | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | (0.12 | ) | | | (0.14 | ) | | | (0.11 | ) | | | (0.31 | ) | | | (0.10 | ) | | | (0.13 | ) | | | (0.03 | ) | | | (0.07 | ) | | | (0.03 | ) | | | (0.21 | ) | | | (0.02 | ) | | | (0.06 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (0.12 | ) | | | (0.14 | ) | | | (0.11 | ) | | | (0.31 | ) | | | (0.10 | ) | | | (0.13 | ) | | | (0.03 | ) | | | (0.07 | ) | | | (0.03 | ) | | | (0.21 | ) | | | (0.02 | ) | | | (0.06 | ) |
| Net increase (decrease) in net asset value | | | 0.28 | | | | 1.97 | | | | (0.96 | ) | | | (0.21 | ) | | | 0.04 | | | | 2.35 | | | | 0.31 | | | | 1.90 | | | | (0.95 | ) | | | (0.21 | ) | | | 0.02 | | | | 2.29 | |
| Net Asset Value at end of period | | $ | 14.28 | | | $ | 14.00 | | | $ | 12.03 | | | $ | 12.99 | | | $ | 13.20 | | | $ | 13.16 | | | $ | 13.94 | | | $ | 13.63 | | | $ | 11.73 | | | $ | 12.68 | | | $ | 12.89 | | | $ | 12.87 | |
| Total Return (%)2 | | | 2.86 | 3 | | | 17.79 | | | | (6.60 | ) | | | 0.83 | | | | 1.09 | | | | 23.11 | | | | 2.50 | 3 | | | 16.89 | | | | (7.27 | ) | | | 0.06 | | | | 0.31 | | | | 22.26 | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 20,364 | | | $ | 20,520 | | | $ | 18,573 | | | $ | 21,072 | | | $ | 23,012 | | | $ | 24,571 | | | $ | 1,044 | | | $ | 1,195 | | | $ | 1,288 | | | $ | 1,692 | | | $ | 2,061 | | | $ | 2,946 | |
| Ratios of expenses to average net assets (%) | | | 1.60 | 4 | | | 1.60 | | | | 1.61 | | | | 1.60 | | | | 1.60 | | | | 1.60 | | | | 2.35 | 4 | | | 2.35 | | | | 2.36 | | | | 2.35 | | | | 2.35 | | | | 2.35 | |
| Ratio of net investment income to average net assets (%) | | | 0.92 | 4 | | | 0.82 | | | | 1.00 | | | | 0.88 | | | | 1.13 | | | | 1.02 | | | | 0.12 | 4 | | | 0.05 | | | | 0.21 | | | | 0.10 | | | | 0.29 | | | | 0.28 | |
| Portfolio turnover (%)5 | | | 17 | 3 | | | 32 | | | | 34 | | | | 45 | | | | 44 | | | | 53 | | | | 17 | 3 | | | 32 | | | | 34 | | | | 45 | | | | 44 | | | | 53 | |
| | | CLASS Y | |
| | | | |
| | | Six Months | | Year Ended October 31, | |
| | | | | | | | |
| | | Ended 4/30/18 | | | | | | | | | | | | | | | | | | | | | |
| | | (unaudited) | | 2017 | | 2016 | | 2015 | | 2014 | | 2013 | |
| | | | | | | | | | | | | | | | | | | |
| Net Asset Value at beginning of period | | $ | 14.04 | | | $ | 12.05 | | | $ | 13.00 | | | $ | 13.22 | | | $ | 13.18 | | | $ | 10.82 | | |
Income from Investment Operations: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income1 | | | 0.51 | | | | 0.34 | | | | 0.14 | | | | (0.05 | ) | | | 0.73 | | | | 0.13 | | |
Net realized and unrealized gain (loss) on investments | | | (0.10 | ) | | | 1.82 | | | | (0.95 | ) | | | 0.17 | | | | (0.56 | ) | | | 2.38 | | |
| | | | | | | | | | | | | | | | | | | | |
Total from investment operations | | | 0.41 | | | | 2.16 | | | | (0.81 | ) | | | 0.12 | | | | 0.17 | | | | 2.51 | | |
Less Distributions From: | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | (0.15 | ) | | | (0.17 | ) | | | (0.14 | ) | | | (0.34 | ) | | | (0.13 | ) | | | (0.15 | ) | |
| | | | | | | | | | | | | | | | | | | | |
Total distributions | | | (0.15 | ) | | | (0.17 | ) | | | (0.14 | ) | | | (0.34 | ) | | | (0.13 | ) | | | (0.15 | ) | |
| Net increase (decrease) in net asset value | | | 0.26 | | | | 1.99 | | | | (0.95 | ) | | | (0.22 | ) | | | 0.04 | | | | 2.36 | | |
| Net Asset Value at end of period | | $ | 14.30 | | | $ | 14.04 | | | $ | 12.05 | | | $ | 13.00 | | | $ | 13.22 | | | $ | 13.18 | | |
| Total Return (%)2 | | | 2.92 | 3 | | | 18.18 | | | | (6.40 | ) | | | 1.09 | | | | 1.29 | | | | 23.44 | | |
| Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net Assets at end of period (in 000’s) | | $ | 4,861 | | | $ | 10,098 | | | $ | 15,398 | | | $ | 15,566 | | | $ | 7,938 | | | $ | 34,634 | | |
| Ratios of expenses to average net assets (%) | | | 1.35 | 4 | | | 1.35 | | | | 1.36 | | | | 1.35 | | | | 1.35 | | | | 1.35 | | |
| Ratio of net investment income to average net assets (%) | | | 0.79 | 4 | | | 1.06 | | | | 1.21 | | | | 1.27 | | | | 1.65 | | | | 1.26 | | |
| Portfolio turnover (%)5 | | | 17 | 3 | | | 32 | | | | 34 | | | | 45 | | | | 44 | | | | 53 | | |
| 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. |
| 6 | Amounts represent less than $0.005 per share. |
| See accompanying Notes to Financial Statements. |
| | |
| |
| | 53 |
Madison Funds | April 30, 2018
Notes to the Financial Statements (unaudited)
1. ORGANIZATION
Madison Funds, a Delaware statutory 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, 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”), and 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 Funds 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.
Each fund is an investment company and accordingly follows the Investment Company accounting and reporting guidance of the Financial Accounting Standards Board (FASB) Accounting Standard Codification Topic 946 “Financial Services - Investment Companies.”
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 has been reduced as a result of overall economic conditions and credit tightening. 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 need to “fair value” one or more of its investments, which may, in turn, require an
Madison Funds | Notes to the Financial Statements (unaudited) - continued | April 30, 2018
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 March 2017, the FASB issued Accounting Standards Update (ASU) 2017-08 which changes the amortization period for a callable debt security from the maturity date to the earliest call date. The ASU is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. At this time, management is still evaluating the impacts this ASU will have on the financial statements.
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, 2018, 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, Tax-Free Virginia and Tax Free National 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.” The Covered Call & Equity Fund, International Stock Fund, Large Cap Fund and Small Cap Fund had net realized gains of $78, $5,414, $482 and $1,092, related to foreign currency transaction respectively.
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, Tax-Free Virginia and Tax Free National 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, 2018, 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, except for the Government Money Market Fund which is governed by the Rule 2(a)-7 liquidity guidelines. 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, 2018, 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, 2018
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, 2018, none of the Funds had entered into such transactions.
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, 2018 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, 2018, 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, 2018, 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):
| | | | Quoted Prices In | | Significant | | | | | | | |
| | | | Active Markets | | Other | | Significant | | | |
| | | | for Identical | | Observable | | Unobservable | | | |
| | | | Investments | | Inputs | | Inputs | | | Value at |
| Fund1 | | | (Level 1) | | (Level 2) | | (Level 3) | | | 4/30/18 |
| | | | | | | | | | | | | | | | | |
| Conservative Allocation | | | $ | 71,747,804 | | | $ | – | | | $ | – | | | $ | 71,747,804 |
| Moderate Allocation | | | | 142,573,469 | | | | – | | | | – | | | | 142,573,469 |
| Aggressive Allocation | | | | 65,618,368 | | | | – | | | | – | | | | 65,618,368 |
| Government Money Market2 | | | | 597,705 | | | | 14,317,745 | | | | – | | | | 14,915,450 |
| Tax-Free Virginia | | | | – | | | | 21,107,166 | | | | – | | | | 21,107,166 |
| Tax-Free National | | | | – | | | | 23,396,540 | | | | – | | | | 23,396,540 |
| High Quality Bond | | | | | | | | | | | | | | | | |
Corporate Notes and Bonds | | | | – | | | | 36,148,956 | | | | – | | | | 36,148,956 |
U.S. Government and Agency | | | | | | | | | | | | | | | | |
Obligations | | | | – | | | | 57,335,679 | | | | – | | | | 57,335,679 |
Short-Term Investments | | | | 784,978 | | | | – | | | | – | | | | 784,978 |
| | | | | | | | | | | | | |
| | | | | 784,978 | | | | 93,484,635 | | | | – | | | | 94,269,613 |
| Core Bond | | | | | | | | | | | | | | | | |
Asset Backed Securities | | | | – | | | | 9,664,074 | | | | – | | | | 9,664,074 |
Collateralized Mortgage | | | | | | | | | | | | | | | | |
Obligations | | | | – | | | | 5,601,126 | | | | – | | | | 5,601,126 |
Commercial Mortgage- | | | | | | | | | | | | | | | | |
Backed Securities | | | | – | | | | 5,251,902 | | | | – | | | | 5,251,902 |
Corporate Notes and Bonds | | | | – | | | | 73,823,335 | | | | – | | | | 73,823,335 |
Long Term Municipal Bonds | | | | – | | | | 11,272,296 | | | | – | | | | 11,272,296 |
Mortgage Backed Securities | | | | – | | | | 39,169,150 | | | | – | | | | 39,169,150 |
U.S. Government and Agency | | | | | | | | | | | | | | | | |
Obligations | | | | – | | | | 37,593,961 | | | | – | | | | 37,593,961 |
Short-Term Investments | | | | 5,082,324 | | | | – | | | | – | | | | 5,082,324 |
Collateral for Securities on | | | | | | | | | | | | | | | | |
Loan | | | | 706,090 | | | | – | | | | – | | | | 706,090 |
| | | | | | | | | | | | | |
| | | | | 5,788,414 | | | | 182,375,844 | | | | – | | | | 188,164,258 |
| Corporate Bond | | | | | | | | | | | | | | | | |
Corporate Notes and Bonds | | | | – | | | | 19,882,760 | | | | – | | | | 19,882,760 |
Long Term Municipal Bonds | | | | – | | | | 424,120 | | | | – | | | | 424,120 |
Short-Term Investments | | | | 582,745 | | | | – | | | | – | | | | 582,745 |
| | | | | | | | | | | | | |
| | | | | 582,745 | | | | 20,306,880 | | | | – | | | | 20,889,625 |
| High Income | | | | | | | | | | | | | | | | |
Corporate Notes and Bonds | | | | – | | | | 19,774,638 | | | | – | | | | 19,774,638 |
Short-Term Investments | | | | 1,638,916 | | | | – | | | | – | | | | 1,638,916 |
Collateral for Securities on | | | | | | | | | | | | | | | | |
Loan | | | | 1,932,803 | | | | – | | | | – | | | | 1,932,803 |
| | | | | | | | | | | | | |
| | | | | 3,571,719 | | | | 19,774,638 | | | | – | | | | 23,346,357 |
| Diversified Income | | | | | | | | | | | | | | | | |
Common Stocks | | | | 99,218,458 | | | | – | | | | – | | | | 99,218,458 |
Asset Backed Securities | | | | – | | | | 2,550,843 | | | | – | | | | 2,550,843 |
Collateralized Mortgage | | | | | | | | | | | | | | | | |
Obligations | | | | – | | | | 1,760,762 | | | | – | | | | 1,760,762 |
Commercial Mortgage- | | | | | | | | | | | | | | | | |
Backed Securities | | | | – | | | | 1,018,128 | | | | – | | | | 1,018,128 |
Corporate Notes and Bonds | | | | – | | | | 21,634,946 | | | | – | | | | 21,634,946 |
Long Term Municipal Bonds | | | | – | | | | 3,425,661 | | | | – | | | | 3,425,661 |
Mortgage Backed Securities | | | | – | | | | 11,395,389 | | | | – | | | | 11,395,389 |
U.S. Government and Agency | | | | | | | | | | | | | | | | |
Obligations | | | | – | | | | 12,215,135 | | | | – | | | | 12,215,135 |
Short-Term Investments | | | | 3,774,556 | | | | – | | | | | | | | 3,774,556 |
Collateral for Securities on | | | | | | | | | | | | | | | | |
Loan | | | | 222,950 | | | | – | | | | – | | | | 222,950 |
| | | | | | | | | | | | | |
| | | | | 103,215,964 | | | | 54,000,864 | | | | – | | | | 157,216,828 |
| Covered Call & Equity Income | | | | | | | | | | | | | | | | |
Assets: | | | | | | | | | | | | | | | | |
Common Stocks | | | | 106,261,315 | | | | – | | | | – | | | | 106,261,315 |
Exchange Traded Funds | | | | 8,255,998 | | | | – | | | | – | | | | 8,255,998 |
Short-Term Investments | | | | 6,799,415 | | | | – | | | | – | | | | 6,799,415 |
| | | | | | | | | | | | | |
| | | | | 121,316,728 | | | | | | | | – | | | | 121,316,728 |
Liabilities: | | | | | | | | | | | | | | | | |
Call Options Written | | | | 2,178,521 | | | | – | | | | – | | | | 2,178,521 |
Madison Funds | Notes to the Financial Statements (unaudited) - continued | April 30, 2018
| | | | Quoted Prices In | | Significant | | | | | | | |
| | | | Active Markets | | Other | | Significant | | | |
| | | | for Identical | | Observable | | Unobservable | | | |
| | | | Investments | | Inputs | | Inputs | | | Value at |
| Fund1 | | | (Level 1) | | (Level 2) | | (Level 3) | | | 4/30/18 |
| Dividend Income | | | | | | | | | | | | | | | | |
Common Stocks | | | $ | 107,705,035 | | | $ | – | | | $ | – | | | $ | 107,705,035 |
Short-Term Investments | | | | 1,265,364 | | | | – | | | | – | | | | 1,265,364 |
| | | | | | | | | | | | | |
| | | | | 108,970,399 | | | | – | | | | – | | | | 108,970,399 |
| Large Cap Value | | | | | | | | | | | | | | | | |
Common Stocks | | | | 93,482,890 | | | | – | | | | – | | | | 93,482,890 |
Short-Term Investments | | | | 5,371,989 | | | | – | | | | – | | | | 5,371,989 |
| | | | | | | | | | | | | |
| | | | | 98,854,879 | | | | – | | | | – | | | | 98,854,879 |
| Investors | | | | | | | | | | | | | | | | |
Common Stocks | | | | 278,103,140 | | | | – | | | | – | | | | 278,103,140 |
Short-Term Investments | | | | 17,211,057 | | | | – | | | | – | | | | 17,211,057 |
| | | | | | | | | | | | | |
| | | | | 295,314,197 | | | | – | | | | – | | | | 295,314,197 |
| Mid Cap | | | | | | | | | | | | | | | | |
Common Stocks | | | | 331,360,032 | | | | – | | | | – | | | | 331,360,032 |
Short-Term Investments | | | | 17,391,438 | | | | – | | | | – | | | | 17,391,438 |
| | | | | | | | | | | | | |
| | | | | 348,751,470 | | | | – | | | | – | | | | 348,751,470 |
| Small Cap | | | | | | | | | | | | | | | | |
Common Stocks | | | | 80,491,075 | | | | 3,996,028 | | | | – | | | | 84,487,103 |
Short-Term Investments | | | | 3,548,059 | | | | – | | | | – | | | | 3,548,059 |
Collateral for Securities on | | | | | | | | | | | | | | | | |
Loan | | | | 1,563,993 | | | | – | | | | – | | | | 1,563,993 |
| | | | | | | | | | | | | |
| | | | | 85,603,127 | | | | 3,996,028 | | | | – | | | | 89,599,155 |
| International Stock | | | | | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | | | | | |
Australia | | | | – | | | | 838,973 | | | | – | | | | 838,973 |
Belgium | | | | – | | | | 397,325 | | | | – | | | | 397,325 |
Brazil | | | | – | | | | 203,882 | | | | – | | | | 203,882 |
Canada | | | | – | | | | 1,151,337 | | | | – | | | | 1,151,337 |
Denmark | | | | – | | | | 503,161 | | | | – | | | | 503,161 |
Finland | | | | – | | | | 380,782 | | | | – | | | | 380,782 |
France | | | | – | | | | 3,161,998 | | | | – | | | | 3,161,998 |
Germany | | | | – | | | | 1,165,332 | | | | – | | | | 1,165,332 |
India | | | | 248,918 | | | | – | | | | | | | | 248,918 |
Ireland | | | | 874,430 | | | | 619,168 | | | | – | | | | 1,493,598 |
Japan | | | | – | | | | 4,705,995 | | | | – | | | | 4,705,995 |
Luxembourg | | | | – | | | | 204,764 | | | | – | | | | 204,764 |
Netherlands | | | | – | | | | 784,171 | | | | – | | | | 784,171 |
Norway | | | | – | | | | 737,749 | | | | – | | | | 737,749 |
Singapore | | | | – | | | | 620,479 | | | | – | | | | 620,479 |
Spain | | | | – | | | | 357,010 | | | | – | | | | 357,010 |
Sweden | | | | – | | | | 838,425 | | | | – | | | | 838,425 |
Switzerland | | | | – | | | | 1,690,275 | | | | – | | | | 1,690,275 |
Taiwan | | | | 376,810 | | | | – | | | | – | | | | 376,810 |
Turkey | | | | – | | | | 241,464 | | | | – | | | | 241,464 |
United Kingdom | | | | 564,181 | | | | 4,767,559 | | | | – | | | | 5,331,740 |
Preferred Stocks | | | | – | | | | 243,946 | | | | – | | | | 243,946 |
Short-Term Investments | | | | 453,308 | | | | – | | | | – | | | | 453,308 |
Collateral for Securities on | | | | | | | | | | | | | | | | |
Loan | | | | 408,539 | | | | – | | | | – | | | | 408,539 |
| | | | | | | | | | | | | |
| | | | | 2,926,186 | | | | 23,613,795 | | | | – | | | | 26,539,981 |
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, 2018, 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 Statements of Assets and Liabilities as of April 30, 2018.
| Statements of Asset & Liability Presentation of Fair Values of Derivative Instruments |
| | | | | | Liability Derivatives |
| | | | | | | |
| | | | Derivatives accounted | | | Statements of Assets | | | |
| Fund | | | for as hedging instruments | | | and Liabilities Location | | | Fair Value |
| Covered Call & Equity Income | | | Equity contracts | | | Options written, at Value | | | $2,178,521 |
The following table presents the effect of Derivative Instruments on the Statements of Operations for the period ended April 30, 2018.
| | | | | | | | | | Change in Unrealized |
| | | | | Realized Gain | | Appreciation |
| | | Derivatives not accounted | | | (Loss) on | | (Depreciation) |
| Fund | | for as hedging Instruments | | | Derivatives: | | on Derivatives |
| Core Bond | | Equity Contracts - Option Purchased | | | $ | 34,677 | | | | $ | 10,865 | |
| | | Equity Contracts - Option Written | | | | (37,589 | ) | | | | (7,885 | ) |
| | | | | | | | | | | |
| | | Total | | | $ | (2,912 | ) | | | $ | 2,980 | |
| | | | | | | | | | | |
| Covered Call & | | Equity Contracts – Option Purchased | | | $ | 3,616,821 | | | | $ | – | |
| Equity Income | | Equity Contracts – Option Written | | | | (1,414,406 | ) | | | | 977,153 | |
| | | | | | | | | | | |
| | | Total | | | $ | 2,202,415 | | | | $ | 977,153 | |
| | | | | | | | | | | |
The average volume (based on the open positions at each month-end) of derivative activity during the period ended April 30, 2018:
| | | | Options Purchased Contracts(1) | | | Options Written Contracts(1) |
| | | | | | | |
| Core Bond | | | 15 | | | 15 |
| | | | | | | |
| Covered Call & Equity Income | | | 75 | | | 8,985 |
| | | | | | | |
| (1)Number of Contracts | | | | | | |
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, 2018:
| Fund | Advisory Fee | | Fund | Advisory Fee | |
| Conservative Allocation | 0.20% | | High Income | 0.55% | |
| Moderate Allocation | 0.20% | | Diversified Income | 0.65% | |
| Aggressive Allocation | 0.20% | | Covered Call & Equity Income | 0.85% | |
| Government Money Market | 0.40% | | Dividend Income | 0.75% | |
| Tax-Free Virginia | 0.50% | | Large Cap Value | 0.55% | |
| Tax-Free National | 0.40% | | Investors | 0.75% | |
| High Quality Bond | 0.30% | | Mid Cap | 0.75% | |
| Core Bond | 0.50% | | Small Cap | 1.00% | |
| Corporate Bond | 0.40% | | 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, 2018, are Wellington Management Company, LLP for the Small Cap Fund and 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, 2019, 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, 2018 no advisory fees
Madison Funds | Notes to the Financial Statements (unaudited) - continued | April 30, 2018
were waived. A portion of the Dividend Income Fund’s advisory fee, 0.10%, is being waived by the Investment Adviser until February 27, 2019. For the period ended April 30, 2018, the waivers totaled $56,387 for the Divided Income Fund 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, 2019. 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, 2018 no services fees were waived. A portion of the Dividend Income Fund’s annual service fee, 0.05% is being waived by the Investment Adviser until February 27, 2019. For the period ended April 30, 2018, the waivers totaled $28,194 for Dividend Income and are reflected as fees waived in the accompanying Statement of Operations. 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 Servicing & 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:
| | | | | | | | | | | | | Total Shareholder Servicing |
| | | | | | | | | | | | | And Distribution Fees |
| | | Shareholder Servicing Fee | | Distribution Fee | | (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, 2018, the waivers totaled $179 and are reflected as fees waived in the accompanying Statements 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 ended April 30, 2018 were as follows:
Madison Funds | Notes to the Financial Statements (unaudited) - continued | April 30, 2018
| | | Amount Collected | | Amount Retained |
| Fund | | | Class A | | | Class B | | | Class C | | | Class A | | | Class B | | | Class C |
| Conservative Allocation | | $ | 52,894 | | $ | 4,797 | | $ | 385 | | $ | 6,322 | | $ | 4,797 | | $ | 385 |
| Moderate Allocation | | | 84,589 | | | 7,413 | | | 464 | | | 9,842 | | | 7,413 | | | 464 |
| Aggressive Allocation | | | 55,918 | | | 4,110 | | | 165 | | | 6,511 | | | 4,110 | | | 165 |
| Government Money Market | | | n/a | | | 791 | | | n/a | | | n/a | | | 791 | | | n/a |
| Core Bond | | | 4,425 | | | 1,043 | | | n/a | | | 304 | | | 1,043 | | | n/a |
| High Income | | | 2,729 | | | 344 | | | n/a | | | 210 | | | 344 | | | n/a |
| Diversified Income | | | 79,059 | | | 2,781 | | | 156 | | | 11,220 | | | 2,781 | | | 156 |
| Covered Call & Equity Income | | | 26,815 | | | n/a | | | 915 | | | 4,165 | | | n/a | | | 915 |
| Large Cap Value | | | 15,816 | | | 1,065 | | | n/a | | | 1,714 | | | 1,065 | | | n/a |
| Investors | | | 22,003 | | | n/a | | | n/a | | | 2,446 | | | n/a | | | n/a |
| Mid Cap | | | 32,003 | | | 1,231 | | | n/a | | | 3,770 | | | 1,231 | | | n/a |
| Small Cap | | | 2,527 | | | n/a | | | n/a | | | 186 | | | n/a | | | n/a |
| International Stock | | | 12,719 | | | 1,048 | | | n/a | | | 1,455 | | | 1,048 | | | n/a |
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 Bond, 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, Small Cap and International Stock Funds 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, 2018, 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 | | $ | – | | | $ | – | | | $ | 25,552,292 | | | $ | 27,328,415 |
| Moderate Allocation | | | – | | | | – | | | | 55,674,769 | | | | 60,520,818 |
| Aggressive Allocation | | | – | | | | – | | | | 25,000,335 | | | | 25,330,574 |
| Tax-Free Virginia | | | – | | | | – | | | | 1,965,184 | | | | 1,526,007 |
| Tax-Free National | | | – | | | | – | | | | 2,482,410 | | | | 2,695,688 |
| High Quality Bond | | | 12,894,104 | | | | 13,278,067 | | | | 4,734,918 | | | | 6,700,132 |
| Core Bond | | | 4,113,290 | | | | 18,691,472 | | | | 17,507,064 | | | | 10,395,037 |
| Corporate Bond | | | – | | | | – | | | | 1,346,713 | | | | 1,226,735 |
| High Income | | | – | | | | – | | | | 3,698,959 | | | | 4,467,583 |
| Diversified Income | | | 1,752,887 | | | | 6,900,070 | | | | 19,626,822 | | | | 22,904,077 |
| Covered Call & Equity Income | | | – | | | | – | | | | 79,614,469 | | | | 76,064,803 |
| Dividend Income | | | – | | | | – | | | | 21,934,964 | | | | 20,738,860 |
| Large Cap Value | | | – | | | | – | | | | 34,159,371 | | | | 35,279,368 |
| Investors | | | – | | | | – | | | | 62,914,741 | | | | 83,126,182 |
| Mid Cap | | | – | | | | – | | | | 43,299,832 | | | | 45,038,997 |
| Small Cap | | | – | | | | – | | | | 7,088,061 | | | | 15,402,507 |
| International Stock | | | – | | | | – | | | | 4,914,254 | | | | 10,708,327 |
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 Statements 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.
7. FUTURES CONTRACTS AND OPTIONS ON FUTURES CONTRACTS
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
Madison Funds | Notes to the Financial Statements (unaudited) - continued | April 30, 2018
within exchange traded or centrally cleared financial derivative instruments on the Statements 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 Money 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 Statements 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 Madison Funds’ board has recently re-authorized the funds, other than the Government Money Market Fund, to engage in securities lending with State Street Bank and Trust Company as securities lending agent pursuant to a Securities Lending Authorization Agreement (the “Agreement”) and subject to certain securities lending policies and procedures. Under the terms of the Agreement, and subject to the policies and procedures, the authorized funds may lend portfolio securities to qualified borrowers in order to generate additional income, while managing risk associated with the securities lending program. The Agreement requires that loans are collateralized at all times by cash or U.S. government securities, initially equal to at least 102% of the value of the securities. The loaned securities and collateral are marked to market daily to maintain collateral at 102% of the total loaned portfolio. 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 fund could experience delays and costs in recovering securities loaned or in gaining access to the collateral. Under the Agreement, the securities lending agent has provided a limited indemnification in the event of a borrower default.
As of April 30, 2018, the Portfolios listed below had securities on loan to brokers/ dealers, for which each such Portfolio received cash collateral. The non-cash collateral includes short-and/or long-term U.S. Treasuries and U.S. government agency securities as follows:
| | | Market Value | |
| Madison Conservative Allocation Fund | | $ | 350,738 | |
| Madison Moderate Allocation Fund | | | 692,892 | |
| Madison Aggressive Allocation Fund | | | 4,786,426 | |
| Madison Core Bond Fund | | | 691,546 | |
| Madison High Income Fund | | | 1,895,228 | |
| Madison Diversified Income Fund | | | 218,096 | |
| Madison Small Cap Fund | | | 1,531,282 | |
| Madison International Stock Fund | | | 380,896 | |
As of April 30, 2018, some of the Portfolios had securities on loan to brokers/dealers, for which each such Portfolio received cash collateral. In addition, the Madison Aggressive Allocation Fund received non-cash collateral of $4,404,692.
The following table reflects a breakdown of transactions accounted for as secured borrowings, the gross obligation by the type of collateral pledged, and the remaining contractual maturity of those transactions as of April 30, 2018:
| | | Remaining Contractual Maturity of the Agreements |
| | | | | | As of April 30, 2018 | | | |
| | | Continuous | | | | | | | | Greater | | | |
| | | and | | Up to | | 30 - | | than | | | |
| Securities Lending Transactions | | Overnight | | 30 days | | 90 days | | 90 days | | | Total |
| Madison Conservative Allocation Fund | | | | | | | | | | | | | | | |
Investment Companies | | $ | 362,291 | | $ | – | | $ | – | | $ | – | | $ | 362,291 |
| Madison Moderate Allocation Fund | | | | | | | | | | | | | | | |
Investment Companies | | | 715,715 | | | – | | | – | | | – | | | 715,715 |
| Madison Aggressive Allocation Fund | | | | | | | | | | | | | | | |
Investment Companies | | | 498,979 | | | – | | | – | | | – | | | 498,979 |
| Madison Core Bond Fund | | | | | | | | | | | | | | | |
Corporate Notes and Bonds | | | 706,090 | | | – | | | – | | | – | | | 706,090 |
| Madison High Income Fund | | | | | | | | | | | | | | | |
Corporate Notes and Bonds | | | 1,932,803 | | | – | | | – | | | – | | | 1,932,803 |
| Madison Diversified Income Fund | | | | | | | | | | | | | | | |
Corporate Notes and Bonds | | | 222,950 | | | – | | | – | | | – | | | 222,950 |
| Madison Small Cap Fund | | | | | | | | | | | | | | | |
Common Stock | | | 1,563,993 | | | – | | | – | | | – | | | 1,563,993 |
| Madison International Stock Fund | | | | | | | | | | | | | | | |
Common Stock | | | 408,539 | | | – | | | – | | | – | | | 408,539 |
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, 2018. 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 2014 through 2017.
For federal income tax purposes, the Funds listed below have capital loss carryovers as of October 31, 2017, which are available to offset future capital gains, if any, realized through the fiscal year listed:
| | | | | | | | | | | | No Expiration Date |
| Fund | | 2018 | | 2019 | | 2020 | | Short-Term | | Long-Term |
| Government Money | | | | | | | | | | | | | | | |
| Market | | $ | 5 | | $ | – | | $ | – | | $ | 309 | | $ | – |
| Tax-Free Virginia | | | – | | | – | | | – | | | 11,166 | | | 6,117 |
| High Quality Bond | | | – | | | – | | | – | | | 42,572 | | | – |
| High Income | | | – | | | – | | | – | | | 311,933 | | | 1,016,035 |
| International Stock | | | 710,871 | | | – | | | – | | | 1,184,566 | | | 758,977 |
At April 30, 2018, the aggregate gross unrealized appreciation (depreciation) and net unrealized appreciation (depreciation) for all securities, as computed on a federal income tax basis for each Fund were as follows:
Madison Funds | Notes to the Financial Statements (unaudited) - continued | April 30, 2018
| Fund | | Appreciation | | Depreciation | | Net | |
| Conservative Allocation | | $ | 2,617,479 | | $ | 868,283 | | $ | 1,749,196 | |
| Moderate Allocation | | | 11,238,571 | | | 1,138,687 | | | 10,099,884 | |
| Aggressive Allocation | | | 7,080,122 | | | 319,050 | | | 6,761,072 | |
| Government Money Market | | | – | | | – | | | – | |
| Tax-Free Virginia | | | 278,979 | | | 177,131 | | | 101,848 | |
| Tax-Free National | | | 470,092 | | | 209,999 | | | 260,093 | |
| High Quality Bond | | | 27,305 | | | 1,948,556 | | | (1,921,251 | ) |
| Core Bond | | | 1,839,390 | | | 4,261,739 | | | (2,422,349 | ) |
| Corporate Bond | | | 210,231 | | | 413,127 | | | (202,896 | ) |
| High Income | | | 402,126 | | | 451,116 | | | (48,990 | ) |
| Diversified Income | | | 26,803,555 | | | 2,997,652 | | | 23,805,903 | |
| Covered Call & Equity Income | | | 2,952,954 | | | 15,110,786 | | | (12,157,832 | ) |
| Dividend Income | | | 17,477,217 | | | 2,050,835 | | | 15,426,382 | |
| Large Cap Value | | | 18,036,886 | | | 837,086 | | | 17,199,800 | |
| Investors | | | 74,504,341 | | | 2,322,008 | | | 72,182,333 | |
| Mid Cap | | | 123,010,600 | | | 3,893,674 | | | 119,116,926 | |
| Small Cap | | | 20,232,115 | | | 5,129,590 | | | 15,102,525 | |
| International Stock | | | 7,039,413 | | | 461,654 | | | 6,577,759 | |
The differences between cost amounts for book purposes and tax purposes are primarily due to the tax deferral of wash sales.
11. CERTAIN RISKS
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 Fund 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.
Effective May 1, 2015, 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 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.
Madison Funds | Notes to the Financial Statements (unaudited) - concluded | April 30, 2018
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, 2018 follows:
| | | | | | | | | | | | | | | | | Change in | | | | | | | | | | | | | | |
| | | Beginning | | | | | | | | | | | | | Unrealized | | | | | | | | | | | | | | |
| | | Value as of | | Gross | | Gross | | | Realized | | | Appreciation | | | Value at | | | | | | | | | Distributions |
| Fund/Underlying Fund | | 10/31/2017 | | Additions | | Sales | | | Gain (Loss) | | | (Depreciation) | | | 4/30/2018 | | | | Shares | | Dividend Income | | Received1 |
| |
| Conservative Allocation Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Madison Core Bond Fund Class Y | | $ | 15,143,715 | | $ | – | | $ | (400,000 | ) | | $ | (10,020 | ) | | $ | (462,639 | ) | | $ | 14,271,056 | | | | 1,475,807 | | $ | 186,815 | | $ | 191,539 |
| Madison Corporate Bond Fund Class Y | | | 5,205,227 | | | – | | | – | | | | – | | | | (245,740 | ) | | | 4,959,487 | | | | 446,801 | | | 73,374 | | | 115,428 |
| Madison Dividend Income Fund Class Y | | | 4,204,015 | | | 384,612 | | | – | | | | – | | | | (61,681 | ) | | | 4,526,946 | | | | 175,056 | | | 39,199 | | | 134,614 |
| Madison Investors Fund Class Y | | | 4,207,450 | | | 494,074 | | | – | | | | – | | | | (152,302 | ) | | | 4,549,222 | | | | 202,188 | | | 17,144 | | | 244,072 |
| Madison Mid Cap Fund Class Y | | | 1,192,059 | | | 25,564 | | | (696,705 | ) | | | 140,391 | | | | (118,838 | ) | | | 542,471 | | | | 55,467 | | | – | | | 25,562 |
| | | |
| Totals | | $ | 29,952,466 | | | 904,250 | | | (1,096,705 | ) | | | 130,371 | | | | (1,041,200 | ) | | | 28,849,182 | | | | | | | 316,532 | | | 711,215 |
| | | |
| Moderate Allocation Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Madison Core Bond Fund Class Y | | $ | 21,704,905 | | | – | | | (499,001 | ) | | | (14,753 | ) | | | (664,516 | ) | | | 20,526,635 | | | | 2,122,713 | | | 267,528 | | | 274,323 |
| Madison Dividend Income Fund Class Y | | | 15,538,922 | | | 945,384 | | | (497,717 | ) | | | 65,096 | | | | (274,883 | ) | | | 15,776,802 | | | | 610,085 | | | 142,710 | | | 495,384 |
| Madison Investors Fund Class Y | | | 15,556,600 | | | 1,352,430 | | | (497,157 | ) | | | 113,708 | | | | (662,491 | ) | | | 15,863,090 | | | | 705,026 | | | 63,393 | | | 902,430 |
| Madison Large Cap Value Fund Class Y | | | 1,885,886 | | | 1,450,888 | | | – | | | | – | | | | (103,640 | ) | | | 3,233,134 | | | | 218,307 | | | 37,944 | | | 200,887 |
| Madison Mid Cap Fund Class Y | | | 3,091,522 | | | 111,846 | | | (275,268 | ) | | | 48,807 | | | | (30,950 | ) | | | 2,945,957 | | | | 301,223 | | | – | | | 111,846 |
| | | |
| Totals | | $ | 57,777,835 | | | 3,860,548 | | | (1,769,143 | ) | | | 212,858 | | | | (1,736,480 | ) | | | 58,345,618 | | | | | | | 511,575 | | | 1,984,870 |
| | | |
| Aggressive Allocation Fund | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Madison Core Bond Fund Class Y | | $ | 5,659,490 | | | – | | | (199,390 | ) | | | (9,651 | ) | | | (168,989 | ) | | | 5,281,460 | | | | 546,170 | | | 70,079 | | | 71,892 |
| Madison Dividend Income Fund Class Y | | | 8,321,210 | | | 384,727 | | | (599,396 | ) | | | 74,486 | | | | (181,555 | ) | | | 7,999,472 | | | | 309,338 | | | 75,867 | | | 264,726 |
| Madison Investors Fund Class Y | | | 8,330,792 | | | 583,264 | | | (600,130 | ) | | | 106,261 | | | | (395,075 | ) | | | 8,025,112 | | | | 356,672 | | | 33,948 | | | 483,265 |
| Madison Large Cap Value Fund Class Y | | | 1,451,371 | | | 1,504,602 | | | – | | | | – | | | | (83,680 | ) | | | 2,872,293 | | | | 193,943 | | | 29,201 | | | 154,602 |
| Madison Mid Cap Fund Class Y | | | 2,150,983 | | | 77,819 | | | (225,000 | ) | | | 37,714 | | | | (28,422 | ) | | | 2,013,094 | | | | 205,838 | | | – | | | 77,819 |
| | | |
| Totals | | $ | 25,913,846 | | | 2,550,412 | | | (1,623,916 | ) | | | 208,810 | | | | (857,721 | ) | | | 26,191,431 | | | | | | | 209,095 | | | 1,052,304 |
| | | |
1Distributions received include 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, 2018
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, 2018. 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 181/365 (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, $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 |
| | | | | |
| | | Beginning | | Ending | | Annual | | Expenses Paid | | Ending | | Annual | | Expenses Paid |
| Fund | | Account Value | | Account Value | | Expense Ratio | | During Period | | Account Value | | Expense Ratio | | During Period |
| Conservative Allocation* | | $ | 1,000 | | | $ | 1,001.20 | | | | 0.70% | | | $ | 3.47 | | | $ | 997.10 | | | | 1.45% | | | $ | 7.18 | |
| Moderate Allocation* | | | 1,000 | | | | 1,011.70 | | | | 0.70% | | | | 3.49 | | | | 1,008.20 | | | | 1.45% | | | | 7.22 | |
| Aggressive Allocation* | | | 1,000 | | | | 1,018.90 | | | | 0.70% | | | | 3.50 | | | | 1,014.80 | | | | 1.45% | | | | 7.24 | |
| Government Money Market | | | 1,000 | | | | 1,003.90 | | | | 0.55% | | | | 2.73 | | | | 1,000.60 | | | | 1.22% | | | | 6.05 | |
| Core Bond | | | 1,000 | | | | 979.60 | | | | 0.90% | | | | 4.42 | | | | 976.00 | | | | 1.65% | | | | 8.08 | |
| High Income | | | 1,000 | | | | 988.30 | | | | 1.00% | | | | 4.93 | | | | 983.60 | | | | 1.75% | | | | 8.61 | |
| Diversified Income | | | 1,000 | | | | 1,003.50 | | | | 1.10% | | | | 5.46 | | | | 999.20 | | | | 1.85% | | | | 9.17 | |
| Covered Call & Equity Income | | | 1,000 | | | | 1,000.00 | | | | 1.25% | | | | 6.20 | | | | N/A | | | | N/A | | | | N/A | |
| Large Cap Value | | | 1,000 | | | | 1,059.60 | | | | 1.16% | | | | 5.92 | | | | 1,055.60 | | | | 1.91% | | | | 9.73 | |
| Investors | | | 1,000 | | | | 1,021.70 | | | | 1.20% | | | | 6.02 | | | | 1,000.00 | | | | N/A | | | | N/A | |
| Mid Cap | | | 1,000 | | | | 1,036.10 | | | | 1.40% | | | | 7.07 | | | | 1,031.80 | | | | 2.15% | | | | 10.83 | |
| Small Cap | | | 1,000 | | | | 993.60 | | | | 1.50% | | | | 7.41 | | | | 990.30 | | | | 2.25% | | | | 11.10 | |
| International Stock | | | 1,000 | | | | 1,000.00 | | | | 1.60% | | | | 7.93 | | | | 1,000.00 | | | | 2.35% | | | | 11.65 | |
| | CLASS C |
| | |
| Fund | | Beginning Account Value | | Ending Account Value | | Annual Expense Ratio | | Expenses Paid During Period |
| Conservative Allocation* | | $ | 1,000 | | | $ | 997.10 | | | | 1.45% | | | $ | 7.18 | |
| Moderate Allocation* | | | 1,000 | | | | 1,008.20 | | | | 1.45% | | | | 7.22 | |
| Aggressive Allocation* | | | 1,000 | | | | 1,014.70 | | | | 1.45% | | | | 7.24 | �� |
| Diversified Income | | | 1,000 | | | | 999.80 | | | | N/A | | | | N/A | |
| Covered Call & Equity Income | | | 1,000 | | | | 1,000.00 | | | | 2.00% | | | | 9.92 | |
| | | | | | | | | | | | | | | | | |
| | CLASS Y |
| | |
| Fund | | Beginning Account Value | | Ending Account Value | | Annual Expense Ratio | | Expenses Paid During Period |
| Tax-Free Virginia | | $ | 1,000 | | | $ | 984.90 | | | | 0.85% | | | $ | 4.18 | |
| Tax-Free National | | | 1,000 | | | | 980.80 | | | | 0.75% | | | | 3.68 | |
| High Quality Bond | | | 1,000 | | | | 985.20 | | | | 0.49% | | | | 2.41 | |
| Core Bond | | | 1,000 | | | | 980.80 | | | | 0.65% | | | | 3.19 | |
| Corporate Bond | | | 1,000 | | | | 974.50 | | | | 0.65% | | | | 3.18 | |
| High Income | | | 1,000 | | | | 988.20 | | | | 0.75% | | | | 3.70 | |
| Covered Call & Equity Income | | | 1,000 | | | | 1,000.00 | | | | 1.00% | | | | 4.96 | |
| Dividend Income | | | 1,000 | | | | 1,018.60 | | | | 0.95% | | | | 4.75 | |
| Large Cap Value | | | 1,000 | | | | 1,061.00 | | | | 0.91% | | | | 4.65 | |
| Investors | | | 1,000 | | | | 1,023.00 | | | | 0.95% | | | | 4.77 | |
| Mid Cap | | | 1,000 | | | | 1,037.80 | | | | 0.98% | | | | 4.95 | |
| Small Cap | | | 1,000 | | | | 995.60 | | | | 1.25% | | | | 6.18 | |
| International Stock | | | 1,000 | | | | 1,000.00 | | | | 1.35% | | | | 6.69 | |
| | | | | | | | | | | | | | | | | |
| | CLASS R6 |
| | |
| Fund | | Beginning Account Value | | Ending Account Value | | Annual Expense Ratio | | Expenses Paid During Period |
| Core Bond | | $ | 1,000 | | | $ | 980.90 | | | | 0.52% | | | $ | 2.55 | |
| Covered Call & Equity Income | | | 1,000 | | | | 1,000.00 | | | | 0.87% | | | | 4.31 | |
| Investors | | | 1,000 | | | | 1,023.90 | | | | 0.77% | | | | 3.86 | |
| Mid Cap | | | 1,000 | | | | 1,038.10 | | | | 0.77% | | | | 3.89 | |
*The annual expense ratio does not include the expenses of the underlying funds.
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.
Madison Funds | Other Information (unaudited) - concluded | April 30, 2018
| | | | CLASS A | | CLASS B |
| | | | | | |
| | | | Beginning | | Ending | | Annual | | Expenses Paid | | Ending | | Annual | | Expenses Paid |
| Fund | | | Account Value | | Account Value | | Expense Ratio | | During Period | | Account Value | | Expense Ratio | | 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 | | | | 1,022.07 | | | | 0.55% | | | | 2.76 | | | | 1,018.74 | | | | 1.22% | | | | 6.11 | |
| 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 | | | | 1,016.86 | | | | 1.60% | | | | 8.00 | | | | 1,013.14 | | | | 2.35% | | | | 11.73 | |
| | | 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 | | | | 1,017.60 | | | | 1.45% | | | | 7.25 | |
| Diversified Income | | | 1,000 | | | | 1,000.00 | | | | N/A | | | | N/A | |
| 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 | | | | 1,018.10 | | | | 1.35% | | | | 6.76 | |
| | | | | | | | | | | | | | | | | |
| | | 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.
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 1-800-SEC-0330.
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, by calling 1-800-877-6089, or on the SEC’s website at www.sec.gov. The proxy voting records for the funds for the most recent twelve-month period ended June 30 are available to shareholders at no cost by calling 1-800-877-6089 or 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 our letters to Shareholders 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.
 | | Presorted Standard
U.S. POSTAGE
PAID
Louisville, KY
Permit No. 1051 | |
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. 0418
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 28, 2018
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 28, 2018
/s/ Greg Hoppe
Greg Hoppe, Principal Financial Officer
Date: June 28, 2018
