The Madison Small Cap Fund is a concentrated portfolio focusing on high-quality, industry-leading small-cap U.S. companies with market capitalizations ranging from $100 million to $15 billion. As of February 11, 2026, the fund offers multiple share classes (A, Y, I, R6) with net asset values around $10.05 to $10.40, year-to-date returns ranging from 7.83% to 8.00%, and expense ratios between 0.92% and 1.35%. The fund holds 47 positions with a weighted average market capitalization of approximately $6.0 billion and net assets totaling about $152.1 million. Top holdings include Scotts Miracle Gro Co (3.95%) and Encompass Health Corp (3.80%). The fund's performance relative to benchmarks like the Russell 2000 shows mixed results, with a 1-year return of -5.99% compared to the Russell 2000's 12.81%, though since inception returns are higher at 12.17% annually. The fund experienced market volatility early in the year due to government spending cuts and new tariff plans, impacting sectors reliant on government expenditure. The fund carries various risks typical of small and mid-size company investments including market fluctuations and illiquidity and is not guaranteed by any bank or insured by FDIC.

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The Madison Small Cap Fund employs Madison's proprietary "Participate and Protect®" investment philosophy, which reflects investment goals of achieving consistent investment returns while limiting portfolio risk. The fund seeks long-term capital appreciation by investing primarily in a diversified mix of common stocks of small cap U.S. companies (market capitalizations of $100 million to $15 billion) that are believed to be undervalued by various measures and offer sound prospects for capital appreciation. The fund pursues its objective through bottom-up fundamental research, focusing on core growth companies deemed undervalued. Madison's expectation is that investors in the fund will participate near fully in market appreciation during bull markets and experience something less than full participation during bear markets compared with investors in portfolios holding more speculative and volatile securities. This investment philosophy is intended to represent a conservative investment strategy. The fund employs a research-intensive, bottom-up approach to identify high-quality, durable, and growing small companies strategically positioned in attractive industries. The strategy combines active management, risk-conscious techniques using a proprietary Risk Portal and valuation discipline, and maintains a flexible mandate empowering portfolio managers to seek alpha from a wide opportunity set ($100M to $15B market cap).

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