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.

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 April 12, 2024)

Class A

Class Y

Class I

Class R6

NAV

8.84

8.79

8.75

8.74

Change($)

0.03

0.04

0.03

0.03

YTD(%)

-2.26%

-2.10%

-2.08%

-2.17%

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
Rating™ as of 03/31/24

Among 426 Intermediate Core Bond funds

6.00

effective duration1,2

4.04%

30-day SEC Yield3

$194 M

net assets1,2

Commentary

Some of the aggressive repricing of interest rates experienced towards the end of 2023 has reversed as market participants begin to realize that the path towards 2% inflation will be somewhat bumpier than first expected. The most recent data releases on inflation have pointed towards sticky services inflation while at the same time, goods disinflation has stalled.

Performance

Average annual returns, %

Portfolio Highlights

Top Ten Fund Holdings (As of 03/31/24)

US TREASURY N/B

3.00%

US TREASURY N/B

2.00%

US TREASURY N/B

2.68%

FED HM LN PC POOL SD7552

1.62%

US TREASURY N/B

2.66%

US TREASURY N/B

1.50%

US TREASURY N/B

2.48%

US TREASURY N/B

1.16%

US TREASURY N/B

2.35%

US TREASURY N/B

1.13%

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 March 31, 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.

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