Diversified Income Fund
A balanced, all-weather portfolio of above-average dividend stocks and core bonds.
Investment Strategy
The Fund seeks a high total return through the combination of income and capital appreciation. To pursue this objective, the Fund invests 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. Generally, under normal market conditions, the Fund’s portfolio managers attempt to target a 40% bond and 60% stock investment allocation.
Portfolio Management
Why Madison Diversified Income Fund
- “All-weather” portfolio
- Focus on dividend-paying stocks at attractive prices
- Active management of credit risk, sector allocation, and yield curve position
Key Highlights (As of Tuesday June 06, 2023)
Class A | Class C |
|
NAV |
14.04 | 14.19 |
Change($) |
0.02 | 0.02 |
YTD(%) |
-2.84% | -3.13% |
Ticker |
MBLAX | MBLCX |
Inception Date |
12/29/97 | 07/31/12 |
Expense Ratio |
1.11 | 1.86 |
|
Morningstar Overall Among 676 Moderate Allocation funds |
60%
equity target
1.88%
30-day SEC Yield2 (Class A Shares)
28
Average years of PM industry experience
$158.3M
net assets1
Commentary
After the historic interest rate rise and volatile yield curve movements last year, the first weeks of 2023 were relatively calm. Comments from the Federal Reserve (Fed), supported by economic data, suggested that the Fed’s rapid monetary policy normalization was nearing the final stages. Risk assets remained stable, and interest rate expectations began to line up with Fed communications.
Performance
Average annual returns, %
Portfolio Highlights
Top Ten Fund Holdings (As of 05/31/23)
MEDTRONIC PLC |
2.65% |
MORGAN STANLEY |
2.20% |
CISCO SYSTEMS INC |
2.37% |
CME GROUP INC |
2.19% |
JOHNSON + JOHNSON |
2.34% |
COMCAST CORP CLASS A |
2.19% |
CHEVRON CORP |
2.33% |
FASTENAL CO |
2.19% |
HOME DEPOT INC |
2.22% |
NEXTERA ENERGY INC |
2.16% |
Documents and Other Information
| Fact sheet | |
| Investment Strategy letter | |
| Summary Prospectus | |
| Complete Holding List | |
| Quarterly Holdings 1/31/23 | |
| Quarterly Holdings 7/31/22 | |
| Tax Center |
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 December 31, 2022
2 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. Returns for Class A shares reflect deduction of the 5.75% maximum sales charge. 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 equity risk, capital gain realization risks to taxpaying shareholders, interest rate risk, credit risk, non-investment grade security risk, real estate investment Trust (“REITs”) risk, foreign security and emerging market risk, depository receipt risk, and market 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.
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 ICE BofA 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 Diversified Income Fund Custom Index consists of 50% S&P 500® Index and 50% ICE BofA U.S. Corporate, Government & Mortgage Index. The custom index is calculated using a monthly re-balancing frequency (i.e., rebalanced back to original constituent weight every calendar month-end).
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