Madison Diversified Income Fund Q3 2024 Investment Strategy Letter

Disclosures

Indices are unmanaged. An investor can’t make investments instantly in an index. They’re proven for illustrative functions solely, and don’t characterize the efficiency of any particular funding. Index returns don’t embrace any bills, charges or gross sales expenses, which might decrease efficiency.

The S&P 500® Index is a large-cap market index which measures the efficiency of a consultant pattern of 500 main firms in main industries within the U.S.

Russell Funding Group is the supply and proprietor of the emblems, service marks and copyrights associated to the Russell Indexes. Russell® is a trademark of Russell Funding Group.

The Russell 2000 Index measures the efficiency of the two,000 smallest firms within the Russell 3000® Index, which represents roughly 11% of the whole market capitalization of the Russell 3000® Index.

The Russell Midcap® Index measures the efficiency of the 800 smallest firms within the Russell 1000® Index, which characterize roughly 35% of the whole market capitalization of the Russell 1000® Index.

The Russell 1000® Progress Index is designed to trace these securities inside the broader Russell 1000 Index that FTSE Russell has decided exhibit progress traits.

The Russell 1000® Worth Index is designed to trace these securities inside the broader Russell 1000 Index that FTSE Russell has decided exhibit worth traits.

The MSCI ACWI ex-USA Index captures giant and mid cap illustration throughout 22 of 23 Developed Markets international locations (excl. the US) and 23 Rising Markets international locations. With 1,843 constituents, the index covers roughly 85% of the worldwide fairness alternative set exterior the US.

Bloomberg U.S. Mixture Bond Index is an unmanaged index of U.S. mounted earnings securities. The U.S. Mixture Index covers the USD- denominated, investment-grade, fixed-rate, taxable bond market of SEC-registered securities. The index consists of bonds from the Treasury, Authorities-Associated, Company, MBS (company fixed-rate and hybrid ARM passthroughs), ABS, and CMBS sectors.

The Dow Jones U.S. Choose Dividend Index goals to measure the efficiency of excessive dividend-paying U.S. shares, excluding REITs, assembly particular standards for dividends, earnings, dimension and liquidity. It makes use of a yield-driven weighting methodology.

Yield Curve is a line that plots yields (rates of interest) of bonds having equal credit score high quality however differing maturity dates. The slope of the yield curve provides an thought of future rate of interest adjustments and financial exercise. There are three fundamental forms of yield curve shapes: regular (upward sloping curve), inverted (downward sloping curve) and flat.

The Magnificent Seven shares are a bunch of high-performing and influential firms within the U.S. inventory market: Alphabet, Amazon, Apple, Meta Platforms, Microsoft, NVIDIA, and Tesla.

Along with the continued market danger relevant to portfolio securities, bonds are topic to rate of interest danger, credit score danger and inflation danger. When rates of interest rise, bond costs fall; typically, the longer a bond’s maturity, the extra delicate it’s to this danger. Credit score danger is the likelihood that the issuer of a safety will probably be unable to make curiosity funds and repay the principal on its debt. Bonds may additionally be topic to name danger, which permits the issuer to retain the appropriate to redeem the debt, absolutely or partially, earlier than the scheduled maturity date.

Proceeds from gross sales previous to maturity could also be roughly than initially invested on account of adjustments in market situations or adjustments within the credit score high quality of the issuer.

“Madison” and/or “Madison Investments” is the unifying tradename of Madison Funding Holdings, Inc., Madison Asset Administration, LLC (“MAM”), and Madison Funding Advisors, LLC (“MIA”), which additionally consists of the Madison Scottsdale workplace. MAM and MIA are registered as funding advisers with the U.S. Securities and Change Fee. Madison Funds are distributed by MFD Distributor, LLC. MFD Distributor, LLC is registered with the U.S. Securities and Change Fee as a broker-dealer and is a member agency of the Monetary Business Regulatory Authority. The house workplace for every agency listed above is 550 Science Drive, Madison, WI 53711. Madison’s toll-free quantity is 800-767-0300.

Any efficiency information proven represents previous efficiency. Previous efficiency isn’t any assure of future outcomes.

Non-deposit funding merchandise usually are not federally insured, contain funding danger, might lose worth and usually are not obligations of, or assured by, any monetary establishment. Funding returns and principal worth will fluctuate.

This report is for informational functions solely and isn’t meant as a proposal or solicitation with respect to the acquisition or sale of any safety.

Contemplate the funding aims, dangers, and expenses and bills of Madison Funds rigorously earlier than investing. Every fund’s prospectus accommodates this and different details about the fund. Name 800.877.6089 or go to Madison Funds to acquire a prospectus and skim it rigorously earlier than investing.

Though the data on this report has been obtained from sources that the agency believes to be dependable, we don’t assure its accuracy, and any such info could also be incomplete or condensed. All opinions included within the report represent the authors’ judgment as of the date of this report and are topic to vary with out discover. This report is for informational functions solely and isn’t meant as a proposal or solicitation with respect to the acquisition or sale of any safety.

Madison Asset Administration, LLC doesn’t present funding recommendation on to shareholders of the Madison Funds. Opinions acknowledged are informational solely and shouldn’t be taken as funding suggestion or recommendation of any sort in any respect (whether or not neutral or in any other case).

Madison Funds are distributed by MFD Distributor, LLC, member FINRA.