Core Bond Fund
An active and nimble fund with a flexible mandate that manages all fixed income risks.
Investment Strategy
The Core Bond Fund seeks to generate a high level of current income, consistent with the prudent limitation of investment risk. To pursue this objective, the Fund’s portfolio managers strive to add incremental return in the portfolio by making strategic decisions relating to credit risk, sector exposure, and yield curve positioning.
Portfolio Management
Why Madison Core Bond Fund
- Active management of duration (interest rate risk), yield curve, sector, and security selection.
- Combination of proprietary analysis and third-party research to build and monitor an approved list of securities.
- Firm and Fund size allow for institutional pricing scale with the nimbleness to reflect our views in the portfolio without owning the entire market.
Key Highlights (As of Friday December 20, 2024)
Class A | Class Y | Class I | Class R6 |
|
NAV |
8.95 | 8.90 | 8.86 | 8.86 |
Change($) |
0.02 | 0.02 | 0.02 | 0.03 |
YTD(%) |
1.15% | 1.50% | 1.60% | 1.68% |
Ticker |
MBOAX | MBOYX | MBOIX | MBORX |
Inception Date |
12/29/97 | 06/30/06 | 02/26/21 | 02/28/22 |
Expense Ratio |
0.85 | 0.60 | 0.50 | 0.42 |
|
Morningstar Overall Among 431 Intermediate Core Bond funds |
5.79
effective duration1,2
3.67%
30-day SEC Yield3
$196.5M
net assets1
Commentary
Economic data during the third quarter of 2024 lent support to the Fed’s case for declining inflationary pressures and stable economic activity. With evidence of continued progress towards their stated goals, the Federal Open Market Committee (FOMC) acted to reduce the Fed Funds rate at their September 18th meeting. This rate reduction initiated the long-awaited policy easing hinted at by Chairman Powell just over a year ago when the FOMC ‘pivoted’ policy direction.
Performance
Average annual returns, %
Portfolio Highlights
Top Ten Fund Holdings (As of 11/30/24)
US TREASURY N/B |
2.77% |
US TREASURY N/B |
1.67% |
US TREASURY N/B |
2.45% |
FNMA POOL MA4841 |
1.54% |
US TREASURY N/B |
2.15% |
FED HM LN PC POOL SD7552 |
1.47% |
US TREASURY N/B |
2.00% |
US TREASURY N/B |
1.46% |
US TREASURY N/B |
1.99% |
US TREASURY N/B |
1.41% |
The Morningstar Rating™ for funds, or “star rating”, is calculated for funds with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics, and may not indicate positive performance. Ratings may vary by share class.
1 Data as of September 30, 2024.
2 Effective duration provides a measure of a fund’s interest-rate sensitivity. The longer a fund’s duration, the more sensitive the fund is to shifts in interest rates. Average Maturity is computed by weighting the maturity of each security in the portfolio by the market value of the security, then averaging these weighted figures.
3 SEC 30-day yield represents net investment income earned by a fund over a 30-day period, expressed as an annual percentage rate based on the fund’s share price at the end of the 30-day period. It is calculated based on the standardized formula set forth by the SEC.
Performance quoted represents past performance. Past performance does not guarantee and is not a reliable indicator of future results. Investment returns and principal values will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than that shown.
Net Asset Value (NAV) is the amount per share you would receive if you sold shares that day. Change refers to the amount (in dollar terms) that the value of the share price changed from the previous day’s close of trading. The Year-to-date (YTD) return is the net change in the value of the fund’s share price (in percentage terms) at NAV from January 1 to the current date shown above. Expense ratios are as of each fund’s most recent prospectus. For more detailed information on performance, including returns for the most recent month-end or quarter-end, view Performance.
Investment returns assume all distributions are reinvested and reflect all applicable fees and expenses. Benchmark index returns assume all distributions are reinvested. Indexes are unmanaged and, therefore, have no fees. Investors cannot invest directly in an index.
An investment in the Fund is subject to risk and there can be no assurance the Fund will achieve its investment objective. The risks associated with an investment in the Fund can increase during times of significant market volatility. The principal risks of investing in the Fund include interest rate risk, call risk, risk of default, mortgage-backed securities risk, liquidity risk, credit risk and repayment/ extension risk, non-investment grade security risk, and foreign security risk. Mutual funds that invest in bonds are subject to certain risks including interest rate risk, credit risk, and inflation risk. As interest rates rise, the prices of bonds fall. Long-term bonds are more exposed to interest-rate risk than short-term bonds. Investing in non-investment grade securities, may provide greater returns but are subject to greater-than-average risk. More detailed information regarding these risks can be found in the Fund’s prospectus.
Bloomberg 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.
© 2023 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.