MADISON COVERED CALL & EQUITY INCOME FUND

55O SCIENCE DRIVE, MADISON, WI 53711 888.971.7135 MADISONINVESTMENTS.COM55O SCIENCE DRIVE, MADISON, WI 53711 888.971.7135 MADISONINVESTMENTS.COM

Strategy Overview

OPTIONS OVERLAY

Single stock options vs index options

— Allow for limited potentially higher option premiums

— Ability to tailor each option to our view of the underlying equity

— Multiple calls written per equity position, varying by strike and expiration.

Actively managed and diversied.

Typically writing 3-5% out-of-the-money

— Allows upside participation while achieving reasonable option premium

Ability to tilt slightly more defensive/aggressive

— Typically 80% covered with the exibility to move higher for greater

protection or lower for greater participation

— Write closer-to-the-money for greater protection or further out-of-the-money

for greater participation

Typically writing 60-90 day expiration

— Long enough for stocks to work

— Short enough to benet from option time value erosion

UNDERLYING EQUITY PORTFOLIO

30-50 holdings, actively managed

Primarily large-cap with some mid-cap

exposure

Seeks high quality companies:

— Strong balance sheets

— Sustainable competitive advantage

— Rising Return on Invested Capital

— Strong free cash ow generation

— Reasonable valuation

— Positive technical trends

INCOME GENERATION

A high quality biased equity portfolio

delivering an alternative income source via

call writing. We implement a best ideas

approach of buying individual companies

and writing individual calls over those

companies for the purpose of paying a

quarterly distribution to shareholders.

PARTICIPATION IN STRONG

MARKETS

Individual stock options, rather than

index options, can oer higher premiums.

Typically, we write out-of-the-money

calls which allow the potential for limited

upside participation if the underlying

stock price advances.

DOWNSIDE PROTECTION

Hedged equity; ability for defensive

positioning in weak markets by writing

at-the-money or in-the-money calls.

WHY MADISON COVERED CALL?

Madison has been a pioneer in covered call management since 2004. Madison’s strategy of active stock and option management

dierentiates its portfolios from the more common passive strategies, and provides an opportunity to manage risk while

exploiting the higher premiums available for individual stocks. e lead portfolio manager, Ray DiBernardo, CFA, has been

working on the strategy since its inception, and the Equity Income team together brings over 60 years of collective investment

experience to its clients.

is overview is an introduction to Madison’s Covered Call philosophy, process, and investment team.

55O SCIENCE DRIVE, MADISON, WI 53711 888.971.7135 MADISONINVESTMENTS.COM55O SCIENCE DRIVE, MADISON, WI 53711 888.971.7135 MADISONINVESTMENTS.COM

For more complete information about Madison Funds®, including charges and expenses, obtain a prospectus from your nancial adviser, by

calling 800.877.6089 or by visiting madisonfunds.com and clicking on prospectus and reports to view or download a copy. Before investing in

the funds, consider the investment objectives, risks, charges and expenses. e prospectus contains this and other information about funds and

should be read carefully before investing.

“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”), which also includes the Madison Scottsdale oce. Hansberger Growth Investors,

L.P. or “HGI” is an aliate of “Madison Investments.” MAM, MIA and HGI 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 rm of the Financial Industry Regulatory Authority. e home oce

for each rm listed above is 550 Science Drive, Madison, WI 53711. Madison’s toll-free number is 800-767-0300.

Any performance data shown represents past performance. Past performance is no guarantee of future results.

Non-deposit investment products are not federally insured, involve investment risk, may lose value and are not obligations of, or guaranteed by,

any nancial institution. Investment returns and principal value will uctuate.

As a writer of a covered call option, the fund forgoes, during the option’s life, the opportunity to prot from increases in the market value of

the security covering the call option above the sum of the premium and the strike price of the call, but has retained the risk of loss should the

price of the underlying security decline. In addition to its covered call strategy, the fund may pursue an option strategy that includes the writing

of both put options and call options on certain positions in is report is for informational purposes only and is not intended as an oer or

solicitation with respect to the purchase or sale of any security.

Performance data shown represents past performance. Investment returns and principal value will uctuate, so that fund shares, when

redeemed, may be worth more or less than the original cost. Past performance does not guarantee future results and current performance may

be lower or higher than the performance data shown. Visit madisonfunds.com or call 800.877.6089 to obtain performance data current to the

most recent month-end.

Madison Asset Management, LLC does not provide investment advice directly to shareholders of the Madison Funds. Materials on this docu-

ment are informational only and should not be taken as investment recommendation or advice of any kind whatsoever (whether impartial or

otherwise).

An investment in the fund is subject to risk and there can be no assurance that the fund will achieve its investment objective. e risks associat-

ed with an investment in the fund can increase during times of signicant market volatility. e principal risks of investing in the fund include:

equity risk, mid-cap company risk, option risk, tax risk, concentration risk and foreign security and emerging market risk. More detailed infor-

mation regarding these risks can be found in the fund’s prospectus.

Not FDIC Insured | No Financial Institution Guarantee | May Lose Value

WHY MADISON?

Our management discipline requires constant attention to individual stocks,

continual monitoring of market conditions and the willingness to make tough

decisions. It has meant having the wisdom to be patient, the courage to act on

our convictions, and the discipline to stay true to our style.

CONSERVATIVE MANAGEMENT FOR OVER 40 YEARS

Since Madison was founded in 1974, managing client assets has been the

sole focus of our company. Our investment professionals build risk-conscious

portfolios and strive to deliver excellent investment results and best-in-class

service to our clients. We partner with investors and their advisers to help

clients achieve their investment goals through our oering of actively-managed

stock, bond, and asset allocation portfolios constructed to emphasize downside

protection.

INDEPENDENT AND ALIGNED WITH OUR CLIENTS

Madison is 100% employee-owned. Because our employees are owners,

we are only successful if our clients’ investing experience is excellent. We

make decisions that are in the long-term best interest of those we serve. Our

independence allows us to focus entirely on managing our clients’ assets with no

outside inuences.

Drew Justman, CFA

Portfolio Manager

Industry since 2001

Ray Di Bernardo, CFA

Portfolio Manager

Industry since 1987

Experienced Management