Madison Investments was recognized as a top performer in the annual “Barron’s Best Fund Families,” ranking 6th overall for 2022. Madison Investments’ suite of mutual funds includes six domestic stock funds, one international stock fund, two taxable bond funds, two tax-exempt bond funds, and four multi-asset allocation funds.
“We are honored to be ranked by Barron’s as a leading fund family in 2022”, said Steve Carl, Principal and Chairman of the Executive Committee at Madison Investments. “Our funds are built to pursue excellent risk-adjusted returns and to protect principal during difficult markets. The volatility seen in 2022 was an opportunity for our investment teams to prove their value, and by actively managing for downside risk, I think we did just that.”
Propelling Madison Investments to the 6th overall ranking was its strong performance across all asset class categories.
To be included in the ranking, firms must offer at least three actively managed mutual funds or active exchange-traded funds in Lipper’s general U.S. stock category, plus one in world equity and one mixed-asset—such as a balanced or allocation fund. They also need to offer at least two taxable bond funds and one national tax-exempt bond fund.
About Madison Investments
Madison Investments, founded in 1974, is an independent, employee and founder owned investment firm offering investment management and investment advisory solutions. The firm, headquartered in Madison, WI, manages over $21 billion in client assets as of December 31, 2022. Madison Investments’ four investment teams, Fixed Income, U.S. Equity, International Equity and Multi-Asset Solutions, offer investment strategies and solutions to a wide array of clients: Financial Advisors, Consultants, Credit Unions, Insurance Companies, and Private Clients. The firm has built a national reputation for superior customer service, excellent risk-adjusted returns and crafting portfolios differentiated from passive benchmarks.
Madison Investments ranked 6th out of 49 fund families for the one-year period ended December 31, 2022, and ranked 43rd in the five-year period out of 49 fund families, and 45th out of 47 fund families for the ten-year period ended December 31, 2022.
Consider the investment objectives, risks, and charges and expenses of Madison Funds carefully before investing. Each fund’s prospectus contains this and other information about the fund. Call 800.877.6089 or visit madisonfunds.com to obtain a prospectus and read it carefully before investing.
Ranking Methodology as provided by Barron’s
“All mutual and exchange-traded funds are required to report their returns after fees are deducted—to regulators as well as in advertising and marketing material—to better reflect what investors have actually experienced. But our aim is to measure manager skill, independent of expenses beyond annual management fees. That’s why we calculate returns before any 12b-1 marketing fees are deducted. Similarly, fund loads, or sales charges, aren’t included in our calculation of returns.”
“Each fund’s performance is measured against all of the other funds in its Refinitiv Lipper category, with a percentile ranking of 100 being the highest and one the lowest. This result is then weighted by asset size, relative to the fund family’s other assets in its general classification. If a family’s biggest funds do well, that boosts its overall ranking; poor performance in its biggest funds hurts a firm’s ranking.”
“To be included in the ranking, a firm must have at least three funds in the general equity category, one world equity, one mixed equity (such as a balanced or target-date fund), two taxable bond funds, and one national tax-exempt bond fund.”
“Single-sector and country equity funds are factored into the rankings as general equity. We exclude all passive index funds, including pure index, enhanced index, and index-based, but include actively managed ETFs and so-called smart-beta ETFs, which are passively managed but created from active strategies.”
“Finally, the score is multiplied by the weighting of its general classification, as determined by the entire Lipper universe of funds. The category weightings for the one-year results in 2022 were general equity, 36.1%; mixed asset, 22%; world equity, 16%; taxable bond, 21.5%; and tax-exempt bond, 4.5%. (Weightings don’t always add up to 100% because of rounding.).”
“The category weightings for the five-year results were general equity, 36.1%; mixed asset, 22.7%; world equity, 16%; taxable bond, 21%; and tax-exempt bond, 4.3%. For the 10-year list, they were general equity, 36.6%; mixed asset, 23%; world equity, 15.9%; taxable bond, 20.1%; and tax-exempt bond, 4.4%.”
“The scoring: Say a fund in the general U.S. equity category has $500 million in assets, accounting for half of the firm’s assets in that category, and its performance lands it in the 75th percentile for the category. The first calculation would be 75 times 0.5, which comes to 37.5. That score is then multiplied by 36.1%, general equity’s overall weighting in Lipper’s universe. So, it would be 37.5 times 0.361, which equals 13.5. Similar calculations are done for each fund in our study. Then the numbers are added for each category and overall. The shop with the highest total score wins. The same process is repeated to determine the five- and 10-year rankings.”
Any performance data shown represents past performance. Past performance is no guarantee of future results.
“Madison” and/or “Madison Investments” is the unifying tradename of Madison Investment Holdings, Inc., Madison Asset Management, LLC (“MAM”), and Madison Investment Advisors, LLC (“MIA”). MAM and MIA are registered as investment advisers with the U.S. Securities and Exchange Commission. Madison Funds are distributed by MFD Distributor, LLC. MFD Distributor, LLC is registered with the U.S. Securities and Exchange Commission as a broker-dealer and is a member firm of the Financial Industry Regulatory Authority. The home office for each firm listed above is 550 Science Drive, Madison, WI 53711. Madison’s toll-free number is 800-767-0300.
Non-deposit investment products are not federally insured, involve investment risk, may lose value and are not obligations of, or guaranteed by, any financial institution. Investment returns and principal value will fluctuate.
This website is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security.
Our expectation is that investors will participate in market appreciation during bull markets and be protected during bear markets compared with investors in portfolios holding more speculative and volatile securities. There is no assurance that these expectations will be realized.