Small Cap Fund
A core small cap fund that embraces a Private Market Value (PMV) framework for security selection and risk management.
Investment Strategy
The Fund pursues its objective of 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 $15 billion). The Fund’s portfolio managers focus on core growth companies that, through bottom-up fundamental research analysis, they believe to be undervalued by various measures and offer sound prospects for capital appreciation.
Portfolio Management
Why Madison Small Cap Fund
- Private market value (PMV) framework guides bottom-up security selection and helps limit downside risk.
- High active share with a focused list of holdings.
- Room to grow in a capacity-constrained asset class.
- Long-tenured management.
Key Highlights (As of Thursday April 18, 2024)
Class A | Class Y | Class I | Class R6 |
|
NAV |
10.33 | 10.52 | 10.54 | 10.57 |
Change($) |
-0.03 | -0.03 | -0.03 | -0.03 |
YTD(%) |
3.40% | 3.54% | 3.54% | 3.63% |
Ticker |
MASMX | BVAOX | MSCIX | MSCRX |
Inception Date |
08/31/19 | 12/16/96 | 02/26/21 | 02/28/22 |
Expense Ratio |
1.35 | 1.10 | 1.00 | 0.92 |
|
Morningstar Overall Among 584 Small Blend funds |
$4.2B
median market cap1,2
24
Average years of PM industry experience1
46
holdings1
$189M
net assets1
Commentary
Looking forward, we continue to see relative value in small caps versus large caps, however we are cautious, due to the almost relentless strength over the last several months. We will continue to prune our gains when appropriate and it is vital that we continue to find new ideas. Our overweights in Industrials, Consumer Staples, and Technology are a result of our bottom-up, 5-pillar PMV (private market valuation) process and not a call on the relative attractiveness of these sectors.
Performance
Average annual returns, %
Portfolio Highlights
Top Ten Fund Holdings (As of 03/31/24)
ONESPAWORLD HOLDINGS LTD |
4.51% |
WILLSCOT MOBILE MINI HOLDING |
3.56% |
PTC INC |
4.45% |
AXIS CAPITAL HOLDINGS LTD |
3.37% |
ENCOMPASS HEALTH CORP |
4.39% |
SUMMIT MATERIALS INC CL A |
3.20% |
PRIMO WATER CORP |
4.25% |
CARLISLE COS INC |
2.85% |
ENTEGRIS INC |
4.17% |
FORMFACTOR INC |
2.75% |
Documents and Other Information
| Fact sheet | |
| Investment Strategy letter | |
| Summary Prospectus | |
| Complete Holding List | |
| Form 8937 - Small Cap Fund Reorganization 8/29/2019 | |
| 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 March 31, 2024.
2 The median market cap represents the midpoint of market capitalization of the companies in which the Fund invests. Market capitalization is calculated by multiplying the number of a company’s shares outstanding by its price per share.
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.
Investment returns reflect fee waivers without which they would have been lower and net expenses higher. The investment adviser waived 0.04% of its annual services fee from August 31, 2019 until February 27, 2021.
Performance data presented for all periods prior to August 31, 2019, for the Class Y shares of Small Cap Fund (the “Fund”) represents the performance of the Broadview Opportunity Fund (the “Predecessor Fund”) which was the accounting survivor of its reorganization into the Class Y shares of the Fund. The performance presented for periods prior to November 29, 2013, represents the performance of the FMI Focus Fund (the “FMI Fund”) which merged into the Predecessor Fund on November 29, 2013. Prior to November 29, 2013, the adviser of the Predecessor Fund served as sub-adviser of the FMI Fund which had the same investment objective and substantially similar investment strategies as the Predecessor Fund.
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 mid cap risk, equity risk, growth and value risks, capital gains realization risks to taxpaying shareholders, foreign security and emerging market risk, depository receipt risk, and market risk. Investing in small, mid-size or emerging companies involves greater risks not associated with investing in more established companies, such as business risk, significant stock price fluctuations and illiquidity. More detailed information regarding these risks can be found in the Fund’s prospectus.
Russell 2000® Index is a small-cap market index which measures the performance of the smallest 2,000 companies in the Russell 3000® Index.
Russell 2500™ Index is a broad index, featuring 2,500 stocks that cover the small- and mid-cap market capitalizations of the U.S. equity universe.
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