PROSPECTUS
May
1, 2010
Madison
Mosaic Income Trust
Government
Fund (Ticker
Symbol: MADTX)
Core
Bond Fund (Ticker
Symbol: MADBX)
The
Securities and Exchange Commission has not approved or disapproved
these
securities
or passed upon the adequacy of this prospectus. Any representation to
the
contrary
is a criminal offense.
Madison
Mosaic Funds ®
www.mosaicfunds.com
TABLE
OF CONTENTS
Summary
Data: Government
Fund 1
Investment
Objectives/Goals 1
Fees and
Expenses 1
Portfolio
Turnover 1
Principal
Investment Strategies 2
Principal
Risks 2
Risk/Return
Bar Chart and Performance Table 2
Management 3
Purchase
and Sale of Fund Shares 3
Tax
Information 4
Payments
to Broker-Dealers and Other Financial Intermediaries 4
Summary
Data: Core
Bond 5
Investment
Objectives/Goals 5
Fees and
Expenses 5
Portfolio
Turnover 5
Principal
Investment Strategies 6
Principal
Risks 6
Risk/Return
Bar Chart and Performance Table 7
Management 8
Purchase
and Sale of Fund Shares 8
Tax
Information 8
Payments
to Broker-Dealers and Other Financial Intermediaries 8
Investment
Objectives 9
Implementation
of Investment
Objectives 9
All
Funds 9
Government
Fund 10
Core Bond
Fund 10
Risks 12
All
Funds 12
Core Bond
Fund 13
Portfolio
Holdings 14
Management 14
Investment
Adviser 14
Compensation 15
Pricing
of Fund
Shares 15
Shareholder
Information 16
Purchase
and Redemption Procedures 16
Dividends
and Distributions 16
Frequent
Purchases and Redemptions of Fund Shares 16
Taxes 18
Federal
Taxes 18
State and
Local Taxes 18
Taxability
of Transactions 18
Certification
of Tax Identification Number 18
Financial
Highlights 19
SUMMARY
DATA: GOVERNMENT FUND
Investment
Objectives/Goals
The
investment objective of the Government Fund is to receive income from bonds and to distribute that
income to its investors as dividends.
Fees
and Expenses
This
table describes the fees and expenses that you may pay if you buy and hold
shares of the Government Fund.
Shareholder
Fees:
(fees
paid directly from your investment)
|
Maximum
sales charge (load)
|
None
|
|
Redemption
fee
|
None
|
|
Exchange
fee
|
None
|
Annual
Fund Operating Expenses:
(expenses
that you pay each year as a percentage of the value of your
investment)
|
Management
fee
|
0.40%
|
|
Distribution
(12b-1) fees
|
None
|
|
Other
expenses
|
0.28%
|
|
Total
annual fund operating expenses
|
0.68%
|
Example:
This
example is intended to help you compare the cost of investing in the Government
Fund with the cost of investing in other mutual funds.
The
example assumes that you invest $10,000 in the Government Fund for the time
periods indicated and then redeem all of your shares at the end of those
periods. The example also assumes that your investment has a 5% return each year
and that the Fund’s operating expenses remain the same. Although your
actual costs may be higher or lower, based on these assumptions, your costs
would be:
|
1
Year
|
3
Years
|
5
Years
|
10
Years
|
|
$69
|
$218
|
$379
|
$847
|
Portfolio
Turnover
The
Government Fund pays transaction costs, such as commissions, when it buys and
sells securities (or “turns over” its portfolio). A higher portfolio
turnover may indicate higher transaction costs and may result in higher taxes
when Fund shares are held in a taxable account. These costs, which
are not reflected in annual fund operating expenses or in the example, affect
the Fund’s performance. During the most recent fiscal year, the
Government Fund’s portfolio turnover rate was 38% of the average value of its
portfolio.
1
Principal
Investment Strategies
The
Government Fund seeks to achieve its investment objective through diversified
investments in bonds and other debt securities. The Fund invests only
in investment grade U.S. Government securities and,
which include a variety of securities issued or guaranteed by the U.S. Treasury
and various agencies of the federal government. They also include
securities issued by various instrumentalities that were established or
sponsored by the U.S. Government and certain interests in these types of
securities (e.g., mortgage-backed securities issued by Ginnie Mae and Fannie
Mae). The Fund emphasizes the safety of principal and interest for its
portfolio investments. The maturities of such investments may range from
long-term (20 years or more) to short-term (less than 10 years).
Principal
Risks
Interest Rate
Risk. The share price of the Government Fund reflects the
value of the bonds held by it. When interest rates or general demand for
municipal securities change, the value of these bonds change. If the
value of these bonds falls, the share price of the Fund will go
down. What might cause bonds to lose value? One reason is because
interest rates went up. When this happens, existing bonds that pay a lower rate
become less attractive and their prices tend to go down. If the share
price falls below the price you paid for your shares, you could lose money when
you redeem your shares. The longer the maturity of any bond, the greater the
effect will be on its price when interest rates change.
Call Risk. If a
bond issuer “calls” a bond held by the Fund (i.e., pays it off at a specified
price before it matures), the Fund could have to reinvest the proceeds at a
lower interest rate. It may also experience a loss if the bond is
called at a price lower than what the Fund paid for the bond.
Risk of Default. Although the
Fund’s investment adviser monitors the condition of bond issuers, it is still
possible that unexpected events could cause the issuer to be unable to pay
either principal or interest on its bond. This could cause the bond
to go into default and lose value. Some federal agency securities are not backed
by the full faith and credit of the United States, so in the event of default,
the Fund would have to look to the agency issuing the bond for ultimate
repayment.
Tax-Related
Risk. You can receive a taxable distribution of capital gain
from the Fund. You may also owe taxes if you sell your shares at a
price that is higher than the price you paid for them.
Mortgage-Backed Securities
Risk. The Fund may own obligations backed by mortgages,
such as those issued by Ginnie Mae and Fannie Mae. If the mortgage
holders prepay them during a period of falling interest rates, the Fund could be
exposed to prepayment risk. In that case, the Fund would have to reinvest the
proceeds at a lower interest rate. The security itself may not increase in value
with the corresponding drop in rates since the prepayment acts to shorten the
maturity of the security.
Risk/Return
Bar Chart and Performance Table
The bar
chart and table below demonstrate the variability of the Government Fund’s
returns by showing changes in the Fund’s performance from year to year over a
10-year period. This information provides some indication of the
risks of investing in the Fund. After the bar chart is a table that compares the
Fund’s average annual total returns with those of a broad-based securities
market index. Remember, however, that past performance (before and
after taxes) does not necessarily indicate how the Fund will perform in the
future.
2
Government
Fund Calendar Year Returns
Highest/lowest
quarterly results during the period shown in the bar chart were:
Highest:
4.91% (quarter ended September 30, 2001)
Lowest:
-1.79% (quarter ended June 30, 2004)
|
Government
Fund
Average
Annual Total Returns
(for
the period ended December 31, 2009)
|
|||
|
One
Year
|
Five
Years
|
Ten
Years
|
|
|
Return
before taxes
|
1.19%
|
4.00%
|
4.70%
|
|
Return
after taxes on distributions
|
0.24%
|
2.92%
|
3.37%
|
|
Return
after taxes on distributions and sale of fund shares
|
0.83%
|
2.78%
|
3.23%
|
|
Barclays
Capital Intermediate Government Bond Index (reflects no deduction for
fees, expenses or taxes)
|
-0.32%
|
4.74%
|
5.65%
|
After-tax
returns are calculated using the historical highest individual federal marginal
income tax rates and do not reflect the impact of state and local taxes. Also,
actual after-tax returns depend on an investor’s tax situation and may differ
from those shown. After-tax returns shown are not relevant to investors who hold
their shares through tax-deferred arrangements, such as 401(k) plans or
individual retirement accounts (IRAs).
Updated
performance information is available by calling the Fund’s shareholder service
department toll-free at 888-670-3600 or the toll-free 24-hour automated
information line at 800-336-3063.
Management
Investment
Adviser. The investment adviser to the Government Fund is
Madison Investment Advisors, Inc. (“MIA”) and Madison Mosaic, LLC, a wholly
owned subsidiary of MIA (collectively referred to herein as
“Madison”).
Portfolio
Managers. Paul Lefurgey (Managing Director and Head of Fixed
Income) and Chris Nisbit (Vice President) co-manage the Government
Fund. Mr. Lefurgey has served in this capacity since 2006 and Mr.
Nisbit has served in this capacity since 1996.
Purchase
and Sale of Fund Shares
3
Purchase
minimums
To establish an
account:
$1,000
for a regular account
$500
for an IRA account
$100
for an Education Savings Account with automatic monthly investments of
at
least
$100
To add to an
account:
$50
for all account types
You may
purchase, redeem or exchange shares of the Fund on any day the New York Stock
Exchange is open for business. You may purchase, redeem or exchange shares of
the Fund either through a financial advisor or directly from the
Fund.
Tax
Information
Dividends
and capital gains distributions you receive from the Fund are subject to federal
income taxes and will also generally be considered taxable income at the state
and local level as well.
Payments
to Broker-Dealers and Other Financial Intermediaries
If you
purchase shares of the Government Fund through a broker-dealer or other
financial intermediary (such as a financial advisor), the Fund’s investment
adviser may pay the intermediary for the sale of Fund shares and related
services. These payments may create a conflict of interest by
influencing the broker-dealer or other financial intermediary to recommend the
Fund over another investment. Ask your financial advisor or visit
your financial intermediary’s website for more information.
4
SUMMARY
DATA: CORE BOND FUND
Investment
Objectives/Goals
The
investment objective of the Core Bond Fund is to receive income from bonds and to distribute that
income to its investors as dividends.
Fees
and Expenses
This
table describes the fees and expenses that you may pay if you buy and hold
shares of the Core Bond Fund.
Shareholder
Fees:
(fees
paid directly from your investment)
|
Maximum
sales charge (load)
|
None
|
|
Redemption
fee
|
None
|
|
Exchange
fee
|
None
|
Annual
Fund Operating Expenses:
(expenses
that you pay each year as a percentage of the value of your
investment)
|
Management
fee
|
0.40%
|
|
Distribution
(12b-1) fees
|
None
|
|
Other
expenses
|
0.30%
|
|
Total
annual fund operating expenses
|
0.70%
|
Example:
This
example is intended to help you compare the cost of investing in the Core Bond
Fund with the cost of investing in other mutual funds.
The
example assumes that you invest $10,000 in the Core Bond Fund for the time
periods indicated and then redeem all of your shares at the end of those
periods. The example also assumes that your investment has a 5% return each year
and that the Fund’s operating expenses remain the same. Although your
actual costs may be higher or lower, based on these assumptions, your costs
would be:
|
1
Year
|
3
Years
|
5
Years
|
10
Years
|
|
$72
|
$224
|
$390
|
$871
|
Portfolio
Turnover
The Core
Bond Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio
turnover may indicate higher transaction costs and may result in higher taxes
when Fund shares are held in a taxable account. These costs, which
are not reflected in annual fund operating expenses or in the example, affect
the Fund’s performance. During the most recent fiscal year, the Core
Bond Fund’s portfolio turnover rate was 16% of the average value of its
portfolio.
5
Principal
Investment Strategies
The Core
Bond Fund seeks to achieve its investment objective through diversified
investments in bonds and other debt securities. The Fund invests in a
broad range of corporate debt securities, obligations of the U.S. Government and
its agencies and money market instruments. It invests at least 80% of its total
assets in bonds, with the total portfolio having a dollar weighted average
maturity of ten years or less. Also, at least 65% of the Fund’s net assets will
be invested in investment grade bonds. Finally, up to 35% of the Fund’s total
assets may be invested in securities rated as low as B, including those commonly
referred to as “high yield,” “high risk” or “junk” bonds.
Principal
Risks
Interest Rate
Risk. The share price of the Core Bond Fund reflects the value
of the bonds held by it. When interest rates or general demand for municipal
securities change, the value of these bonds change. If the value of
these bonds falls, the share price of the Fund will go down. What
might cause bonds to lose value? One reason is because interest rates went up.
When this happens, existing bonds that pay a lower rate become less attractive
and their prices tend to go down. If the share price falls below the
price you paid for your shares, you could lose money when you redeem your
shares. The longer the maturity of any bond, the greater the effect will be on
its price when interest rates
change.
Call Risk. If a
bond issuer “calls” a bond held by the Fund (i.e., pays it off at a specified
price before it matures), the Fund could have to reinvest the proceeds at a
lower interest rate. It may also experience a loss if the bond is
called at a price lower than what the Fund paid for the bond.
Risk of Default. Although the
Fund’s investment adviser monitors the condition of bond issuers, it is still
possible that unexpected events could cause the issuer to be unable to pay
either principal or interest on its bond. This could cause the bond
to go into default and lose value.
Tax-Related
Risk. You can receive a taxable distribution of capital gain
from the Fund. You may also owe taxes if you sell your shares at a
price that is higher than the price you paid for them.
Mortgage-Backed Securities
Risk. The Fund may own obligations backed by mortgages,
such as those issued by Ginnie Mae and Fannie Mae. If the mortgage
holders prepay them during a period of falling interest rates, the Fund could be
exposed to prepayment risk. In that case, the Fund would have to reinvest the
proceeds at a lower interest rate. The security itself may not increase in value
with the corresponding drop in rates since the prepayment acts to shorten the
maturity of the security.
High-Yield Bond
Risk. Because the Fund may
invest up to 35% of its total assetsThe
risks of investing in high-yield
bonds rated
below investment grade, you should understand the risks associated with these
bonds, which include the following:
|
|
·
|
The
Youth and Growth of the High Yield Bond Market. The high yield
(junk) bond market is relatively young and supply is
limited.
|
|
|
Sensitivity to Interest Rates
and Economic Changes. Prices of high yield (junk) bonds may be less
sensitive to interest rate changes than other bonds, but more sensitive to
adverse economic changes or individual corporate
developments.
|
|
|
Market Expectations.
High yield (junk) bond values are very sensitive to market expectations
about the credit worthiness of the issuing
companies.
|
|
|
Liquidity and
Valuation. There may be “thin” trading during times of market
distress.
|
6
|
|
Taxation. Interest
income may be recognized as taxable even though payment of such interest
is not received in cash.
|
|
|
Credit Ratings. Changes
in credit ratings by the major credit rating agencies may lag changes in
the credit worthiness of the
issuer.
|
Risk/Return
Bar Chart and Performance Table
The bar
chart and table below demonstrate the variability of the Core Bond Fund’s
returns by showing changes in the Fund’s performance from year to year over a
10-year period. This information provides some indication of the
risks of investing in the Fund. After the bar chart is a table that compares the
Fund’s average annual total returns with those of a broad-based securities
market index. Remember, however, that past performance (before and
after taxes) does not necessarily indicate how the Fund will perform in the
future.
Core Bond
Fund Calendar Year Returns
Highest/lowest
quarterly results during the period shown in the bar chart were:
Highest:
5.29% (quarter ended December 31, 2008)
Lowest:
-1.83% (quarter ended June 30, 2004)
|
Core
Bond Fund
Average
Annual Total Returns
(for
the period ended December 31, 2009)
|
|||
|
One
Year
|
Five
Years
|
Ten
Years
|
|
|
Return
before taxes
|
3.43%
|
4.15%
|
5.03%
|
|
Return
after taxes on distributions
|
2.32%
|
2.81%
|
3.42%
|
|
Return
after taxes on distributions and sale of fund shares
|
2.22%
|
2.75%
|
3.33%
|
|
Barclays
Capital Aggregate Bond Index (reflects no deduction for fees, expenses or
taxes)
|
5.93%
|
4.97%
|
6.33%
|
After-tax
returns are calculated using the historical highest individual federal marginal
income tax rates and do not reflect the impact of state and local taxes. Also,
actual after-tax returns depend on an investor’s tax situation and may differ
from those shown. After-tax returns shown are not relevant to investors who hold
their shares through tax-deferred arrangements, such as 401(k) plans or
individual retirement accounts (IRAs).
Updated
performance information is available by calling the Fund’s shareholder service
department toll-free at 888-670-3600 or the toll-free 24-hour automated
information line at 800-336-3063.
7
Management
Investment
Adviser. The investment adviser to the Core Bond Fund is
Madison Investment Advisors, Inc. (“MIA”) and Madison Mosaic, LLC, a wholly
owned subsidiary of MIA (collectively referred to herein as
“Madison”).
Portfolio
Managers. Paul Lefurgey (Managing Director and Head of Fixed
Income) and Chris Nisbit (Vice President) co-manage the Government
Fund. Mr. Lefurgey has served in this capacity since 2006 and Mr.
Nisbit has served in this capacity since 1996.
Purchase
and Sale of Fund Shares
Purchase
minimums
To establish an
account:
$1,000
for a regular account
$500
for an IRA account
$100
for an Education Savings Account with automatic monthly investments of
at
least
$100
To add to an
account:
$50
for all account types
You may
purchase, redeem or exchange shares of the Fund on any day the New York Stock
Exchange is open for business. You may purchase, redeem or exchange shares of
the Fund either through a financial advisor or directly from the
Fund.
Tax
Information
Dividends
and capital gains distributions you receive from the Fund are subject to federal
income taxes and will also generally be considered taxable income at the state
and local level as well.
Payments
to Broker-Dealers and Other Financial Intermediaries
If you
purchase shares of the Core Bond Fund through a broker-dealer or other financial
intermediary (such as a financial advisor), the Fund’s investment adviser may
pay the intermediary for the sale of Fund shares and related
services. These payments may create a conflict of interest by
influencing the broker-dealer or other financial intermediary to recommend the
Fund over another investment. Ask your financial advisor or visit
your financial intermediary’s website for more information.
8
INVESTMENT
OBJECTIVES
Madison
Mosaic Income Trust (the “Trust”) offers two portfolios for investment through
this prospectus: the Government Fund and the Core Bond Fund (each, a
“Fund” and collectively, the “Funds”). The Funds share a common
objective: to receive income from bonds and to distribute that income
to its investors as dividends.
The
Funds’ Board of Trustees may change either Fund’s investment objective without
shareholder approval. However, you will receive prior written notice
of any material change. There is no assurance that either Fund’s
investment objective will be achieved.
IMPLEMENTATION
OF INVESTMENT OBJECTIVES
All
Funds
General Selection
Criteria. Madison selects
bonds for each Fund that Madison believes provide the best combination of yield
(i.e., the interest rate the bond pays in relation to its price), credit risk
and diversification for the respective Fund. To a lesser extent, Madison also
considers whether a particular bond may increase in value from its price at the
time of purchase.
Portfolio Trading
Activity - Taxable Capital Gains Potential. Madison may alter the
composition of any Fund with regard to quality and maturity and may sell
securities prior to maturity. Under normal circumstances, however, turnover for
each Fund is generally not expected to exceed 100%. Sales of Fund
securities may result in capital gains. This can occur any time Madison sells a
bond at a price that was higher than the price paid for it, even if Madison does
not engage in active or frequent trading. Under normal circumstances,
no Fund will engage in active or frequent trading of its bonds. However, it is
possible that Madison will determine that market conditions require a
significant change to the composition of a Fund’s portfolio. For example, if
interest rates rise or fall significantly, Madison may attempt to sell bonds
before they lose much value. Also, if a Fund experiences large swings in
shareholder purchases and redemptions, Madison may be required to sell bonds
more frequently in order to generate the cash needed to pay redeeming
shareholders. Under these circumstances, the Fund could make a taxable capital
gain distribution.
Temporary
Defensive Position.
Madison reserves the right to invest a portion of any Fund’s total assets
in short-term debt securities (i.e., those with maturities of one year or less)
and to maintain a portion of Fund assets in uninvested cash. However, Madison
does not intend to hold more than 35% of any Fund’s total assets in such
investments unless Madison determines that market conditions warrant a temporary
defensive investment position. Under such circumstances, up to 100% of any Fund
may be so invested. To the extent that a Fund is so invested, it is not invested
in accordance with policies designed to achieve its stated investment
objective. Short-term investments may include investment grade
certificates of deposit, commercial paper and repurchase agreements. Madison
might hold substantial cash reserves in seeking to reduce a Fund’s exposure to
bond price depreciation during a period of rising interest rates and to maintain
desired liquidity while awaiting more attractive investment conditions in the
bond market.
9
Government
Fund
Selection. Madison limits investments
in the Government Fund to investment grade U.S. Government securities, which
include a variety of securities issued or guaranteed by the U.S. Treasury and
various agencies of the federal government. They also include various
instrumentalities that were established or sponsored by the U.S. Government and
certain interests in these types of securities. It is the Fund’s policy to
invest at least 80% of its assets in these types of securities.
Treasury
securities include notes, bills and bonds. Obligations of the Government
National Mortgage Association (Ginnie Mae), the Federal Home Loan Banks, the
Federal Farm Credit System, Freddie Mac, Fannie Mae, the Small Business
Association and the Student Loan Marketing Association are also considered to be
U.S. Government securities. Except for Treasury securities, these obligations
may not be backed by the “full faith and credit” of the United States.
Government agency obligations are generally guaranteed as to principal and
interest by agencies and instrumentalities of the U.S. government. In sum, all
U.S. Treasury securities and Government National Mortgage Association (Ginnie
Mae) securities are backed by the “full faith and credit” of the United States.
Securities issued by Freddie Mac, Fannie Mae and the Federal Home Loan Banks are
not.
In
addition to the credit of the issuing agency, securities issued by Fannie Mae,
Freddie Mac and the Federal Home Loan Banks are supported by the ability of
these agencies to borrow from the Federal Treasury. In particular, on September
7, 2008, Fannie Mae and Freddie Mac were placed under the conservatorship of the
Federal Housing Finance Agency (“FHFA”). The takeover permits Fannie Mae and
Freddie Mac to grow their mortgage backed security books without limits and
continue to purchase replacement securities for their portfolios, about $20
billion per month, without capital constraints. As part of this takeover, there
will be a financing and investing relationship with the U.S. Treasury via three
different financing facilities to provide critically needed support to Freddie
Mac and Fannie Mae for purposes of promoting liquidity in the mortgage market.
One of the three facilities is a secured liquidity facility which will be not
only for Fannie Mae and Freddie Mac, but also for the 12 Federal Home Loan Banks
that the FHFA also regulates. This new secured lending credit facility available
to Fannie Mae, Freddie Mac, and the Federal Home Loan Banks is intended to serve
as an ultimate liquidity backstop, essentially implementing the temporary
liquidity backstop authority granted by Congress in July 2008. It is designed to
be available until those authorities expire in December 2012.
Maturity. Madison buys
bonds for the Government Fund with maturities that, in its judgment, will
provide the best yields available from debt securities over the life of the
investment. This means that the dollar weighted average maturity of the
Government Fund may be 20 years or more, depending on market conditions. Madison
may adjust this maturity, however, and sell securities prior to maturity.
Madison does not intend, however, to engage in extensive short-term trading on
behalf of the Fund.
Core
Bond Fund
Selection. The Core Bond
Fund seeks to achieve its objectives by investing in corporate debt securities,
obligations of the U.S. Government and its agencies and instrumentalities, and
money market instruments. The percentage of the Core Bond Fund’s
assets that may be invested at any particular time in a particular type of
security and the dollar weighted average maturity of the t0otaltotal
portfolio will depend on Madison’s judgment regarding the risks in the general
market (although the dollar weighted average maturity of the total portfolio
will never exceed 10 years).
10
To gauge
the risks of the general market, Madison monitors many factors, including
economic, monetary and interest rate trends, market momentum, institutional
psychology and historical similarities to current conditions. Below
is a description of the specific types of securities in which the Fund will
invest.
|
|
Corporate Debt
Securities. Madison will primarily buy corporate debt securities
accorded one of the four highest quality ratings by Standard & Poor’s
or Moody’s or, if unrated, judged by Madison to be a comparable quality.
These are generally referred to as “investment grade” securities and are
rated AAA, AA, A and BBB by Standard & Poor’s or Aaa, Aa, A or Baa by
Moody’s. Although all of the corporate debt securities the Fund
holds may be investment grade at any time, the Fund may up to 35% of its
total assets in lower grade corporate debt securities, commonly known as
“high yield,” “high risk” or “junk” bonds. The lowest-grade securities the
Fund will purchase are those rated “B”. Madison will only
invest in lower-grade securities when it believes that the
creditworthiness of the issuer is stable or improving, and when the
potential return of investing in such securities justifies the higher
level of risk. Although the Fund may invest in securities with ratings as
low as “B”, Madison follows certain policies intended to lessen some of
the risks associated with investment in such securities. Included among
such policies are the following:
|
|
|
Bonds
acquired at the time of their initial public offering must be rated at
least “B” by either Standard & Poor’s Corporation or Moody’s Investors
Services, Inc.;
|
|
|
Bonds
rated “BB” or “Ba” or lower must have more than one market maker at the
time of acquisition;
|
|
|
Madison
does not purchase unrated bonds issued by an unrated company, privately
placed bonds or bonds of issuers in
bankruptcy;
|
|
|
Madison
does not purchase zero coupon bonds or bonds having interest paid in the
form of additional securities (commonly called “payment-in-kind” or “PIK”
bonds) if immediately after the investment more than 15% of the value of
the Fund would be invested in such bonds;
and
|
|
|
Madison
will sell, as soon as practical, any security owned by the Fund that is
downgraded below B.
|
Madison
applies the foregoing investment selection criteria at the time an investment is
made. Except as described in item (5) above, Madison might not sell a bond
because of an adverse change in its quality rating or other characteristics
because the impact of such change is often already reflected in its market price
before the bond can be sold.
|
|
U.S. Government
Securities. Madison may also buy the same type of Government
securities for the Core Bond Fund as are purchased for the Government Fund
described above, including mortgage backed securities pools from U.S.
government agencies.
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|
|
Money Market
Securities. Finally, Madison may invest in money market securities.
Money market securities are subject to the limitation that they mature
within one year of the date of their purchase. These
include:
|
11
|
|
Commercial
paper (including variable rate master demand notes) rated at least A-2 by
Standard and Poor’s Corporation or Prime-2 by Moody’s, or if not so rated,
issued by a corporation which has outstanding debt obligations rated at
least in the top two ratings by Standard and Poor’s and
Moody’s;
|
|
|
Debt
obligations (other than commercial paper) of corporate issuers which
obligations are rated at least AA by Standard & Poor’s or Aa by
Moody’s; and
|
|
|
Short-term
obligations of or guaranteed by the U.S. government, its agencies or
instrumentalities.
|
Maturity. Madison will normally invest
the Core Bond Fund so that the Fund has a dollar weighted average maturity of 10
years or less. If Madison believes that market risks are high and bond prices in
general are vulnerable to decline, Madison may reduce the dollar weighted
average maturity of the Fund’s bonds and increase its cash reserves and money
market holdings. Madison does not, however, intend to engage in extensive
short-term trading on behalf of the Fund.
RISKS
All
Funds
Interest Rate
Risk. The value of
shares purchased in each Fund will fluctuate due to changes in the value of
securities held by such Fund. At the time an investor sells his or her shares,
they may be worth more or less than their original cost. Bonds tend
to increase in value when prevailing interest rates fall, and to decrease in
value when prevailing interest rates rise. The longer the maturities of the
bonds held in the Fund, the greater the magnitude of these changes. Investments
with the highest yields may have longer maturities or lower quality ratings than
other investments, increasing the possibility of fluctuations in value per
share.
Tax-Related
Risk. In addition to
dividends from interest (which will be paid monthly), shareholders in each Fund
can recognize taxable income in two ways:
|
|
If
you sell your shares at a price that is higher than when you bought them,
you will have a taxable capital gain. On the other hand, if you sell your
shares at a price that is lower than the price when you bought them, you
will have a capital loss.
|
|
|
In
the event a Fund sells more securities at prices higher than when they
were bought by the Fund, the Fund may pass through the profit it makes
from these transactions by making a taxable capital gain distribution. The
discussion regarding “Portfolio Trading Activity - Taxable Capital Gains
Potential” in the previous section above explains what circumstances can
produce taxable capital gains.
|
Call
Risk. Madison may buy
“callable bonds” for the Funds. This means that the issuer can redeem
the bond before maturity. An issuer may want to call a bond after interest rates
have gone down. If an issuer calls a bond a Fund owns, the Fund could have to
reinvest the proceeds at a lower interest rate. Also, if the price paid for the
bond was higher than the call price, the effect is the same as if the affected
Fund sold the bond at a loss.
12
Mortgage Backed
Securities Risk.
Each Fund may own securities that are backed by mortgages such as, for
example, Ginnie Mae or Fannie Mae securities in the Government Fund, and similar
government or corporate securities in the Core Bond Fund. Normally, the payments
the Fund will receive on such securities represent interest and a portion of the
principal on each mortgage. However, mortgage holders may refinance their
properties when interest rates fall. This has the effect of prepaying large
amounts of the principal on these types of securities. If this happens, the
affected Fund must reinvest the proceeds at a lower interest rate than it was
able to obtain when the Fund purchased the security. Another aspect of this
“prepayment risk” is that prepayments have the effect of shortening maturity. As
a result, when bonds with longer maturities are becoming more valuable as
interest rates fall, these types of securities may not enjoy the full benefit of
this interest rate movement.
Risk of
Default. Even for
bonds that are rated investment grade, it is still possible that unexpected
events (for example, a disaster or unforeseen economic developments, fraud or
corruption at the company or its suppliers or clients, or unanticipated costs
resulting from government legislation) could cause the issuer of a bond to be
unable to pay either principal or interest on its bond. This could cause the
bond to go into default and lose value.
Government
Fund
Some
federal agencies have authority to borrow from the U.S. Treasury while others do
not. In the case of securities not backed by the full faith and credit of the
United States, Madison must look principally to the agency issuing or
guaranteeing the obligation for ultimate repayment. Madison may not
be able to assess a claim against the United States itself in the event the
agency or instrumentality does not meet its commitments.
Core
Bond Fund
The Core
Bond Fund may invest in securities rated as low as B (anything rated below BBB
is considered below “investment grade”). These bonds are generally
deemed to lack desirable investment characteristics. There may be only small
assurance of payment of interest and principal or adherence to the original
terms of issue over any long period. Although the Core Bond Fund can
only invest up to 35% of its total assets in securities rated below investment
grade, you should consider certain risks associated with below investment grade
securities. These risks include the following:
|
|
Youth and Growth of the High
Yield Bond Market. The high yield bond market is relatively young
and its major growth occurred during a long period of economic expansion.
Past economic downturns resulted in large price swings in the value of
high yield bonds. This also adversely affected the value of outstanding
bonds and the ability of the issuers to repay principal and
interest.
|
|
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Sensitivity to Interest Rates
and Economic Changes. Changes in the economy and interest rates may
affect high yield securities differently from other securities. Prices of
high yield bonds may be less sensitive to interest rate fluctuations than
investment grade securities, but more sensitive to adverse economic
changes or individual corporate developments. An economic downturn or a
period of rising interest rates could adversely affect the ability of
highly leveraged issuers to make required principal and interest payments,
meet financial projections or obtain additional financing. Periods of
economic decline or uncertainty may increase the price volatility of high
yield bonds and, therefore, magnify changes in the fund’s net asset value.
Zero coupon bonds and payment-in-kind
securities
|
13
|
|
may
be affected to a greater extent by such developments and thereby tend to
be more volatile than securities that pay interest periodically in
cash.
|
|
|
Market Expectations.
High yield bond values are very sensitive to market expectations about the
credit worthiness of the issuing companies. If events produce a sudden
concern in the marketplace about the ability of high yield bond issuers to
service their debts, investors might try to liquidate significant amounts
of high yield bonds within a short period of time. If shareholders in the
Fund made significant redemptions at the same time, Madison might be
forced to sell some of the Fund’s holdings under adverse market
conditions. Madison would have to do this without regard to their
investment merits. If this happened, the Fund could realize capital losses
and decrease the asset base upon which expenses can be spread. Rising
interest rates can adversely affect the value of high yield bonds, both by
lowering the perceived credit worthiness of the issuers and by lowering
bond prices generally. However, when interest rates are falling or the
credit worthiness of the issuer improves, early redemption or call
features of the bonds may limit their potential for increased
value.
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|
|
Liquidity and
Valuation. Adverse publicity about or public perceptions of high
yield securities and their market, whether or not based on fundamental
analysis, may cause these bonds to lose value and liquidity. Since the
high yield market is an over-the-counter market, there may be “thin”
trading during times of market distress. This means there is a limited
number of buyers and sellers in the
market.
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|
|
Taxation. Interest
income is recognized on zero coupon and payment-in-kind securities. This
income is passed through to shareholders for income tax purposes, even
though payment of such interest is not received in
cash.
|
|
|
Credit Ratings. Madison
considers quality ratings of debt securities when investments are
selected. However, changes in credit ratings by the major credit rating
agencies may lag changes in the credit worthiness of the issuer. Madison
monitors the issuers of high yield bonds to anticipate whether the issuer
will have sufficient cash flow to meet required principal and interest
payments and to assess the bonds’ liquidity, but Madison may not always be
able to foresee adverse developments. Furthermore, credit ratings attempt
to evaluate the safety of principal and interest payments and may not
accurately reflect the market value risks of high yield
bonds.
|
PORTFOLIO
HOLDINGS
Portfolio
holdings information is available on the Funds’ website at www.mosaicfunds.com. In
addition, a complete description of the Funds’ policies and procedures with
respect to the disclosure of portfolio holdings is available in the Funds’
SAI. Please see the back cover of this prospectus for information
about the SAI.
MANAGEMENT
Investment
Adviser
The
investment adviser to the Funds is Madison Investment Advisors, Inc. (“MIA”) and
Madison Mosaic, LLC, a wholly-owned subsidiary of MIA (collectively referred to
herein as “Madison”), both located at 550 Science Drive, Madison, Wisconsin
53711. As of December 31, 2009,
14
Madison
Investment Advisors, Inc., which was founded in 1974, and its subsidiary
organizations, including Madison Mosaic, LLC, managed approximately
$15 billion in assets, including open-end mutual funds, closed-end mutual funds,
separately managed accounts and wrap accounts. Madison is responsible
for the day-to-day administration of the Funds’ activities.
Investment
decisions regarding the Funds can be influenced in various manners by a number
of individuals. Generally, all decisions regarding a Fund’s average
maturity, duration and investment considerations concerning interest rate and
market risk are the primary responsibility of Madison’s investment policy
committee. The investment policy committee is made up of the top
officers and managers of Madison.
Day-to-day
decisions regarding the selection of individual bonds and other management
functions for the Funds are primarily the responsibilities of Paul Lefurgey and
Chris Nisbet.
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|
Paul
Lefurgey. Mr. Lefurgey, managing director and head of
fixed income of Madison since joining Madison in October 2005, was
formerly Vice President for MEMBERS Capital Advisors, Inc. from 2003 until
joining Madison. Mr. Lefurgey became involved in the management
of the Funds in 2006.
|
|
|
Chris
Nisbet. Mr. Nisbet is a Vice President of Madison and
has been a member of the team managing the Funds since 1996. He
has been a member of the firm’s fixed income team since
1992.
|
Information
regarding the portfolio managers’ compensation, their ownership of securities in
the Funds and the other accounts they manage can be found in the
SAI.
Compensation
Investment Advisory
Fee. Madison receives a fee for its services under an
investment advisory agreement with the Funds. The annual fee is 0.40% of the
average daily net assets of each Fund. This fee is deducted automatically from
all accounts and is reflected in the daily share price of each
Fund. A discussion regarding the basis for approval of the Funds’
investment advisory agreement with Madison is contained in the Funds’ annual
report to shareholders for the fiscal year ended December 31, 2009.
Other
Expenses. Under a separate services agreement with the Funds,
Madison provides or arranges for the Funds to have all other operational and
support services needed by the Funds. Madison receives a fee
calculated as a percentage of the average daily net assets of each Fund for
these services. At the end of the Funds’ most recent fiscal year,
this fee was set at 0.28% for the Government Fund and 0.30% for the Core Bond
Fund. Because of this services arrangement with Madison, Madison is
responsible for paying all of the Funds’ fees and expenses, other than the
investment advisory fee (discussed above), fees related to the Fund’s portfolio
holdings (such as brokerage commissions, interest on loans, etc.), and
extraordinary or non-recurring fees of the Fund (such as fees and costs relating
to any temporary line of credit the Funds maintain for emergency or
extraordinary purposes).
15
PRICING
OF FUND SHARES
The price
of each Fund’s shares is based on the net asset value (“NAV”) per share. NAV per
share equals the total daily value of a Fund’s assets, minus its liabilities,
divided by the total number of shares. NAV is calculated at the close
of the New York Stock Exchange (typically 3:00 p.m., Central Time) each day it
is open for trading. The New York Stock Exchange is closed on New
Year’s Day, Martin Luther King, Jr. Day, President’s Day, Good Friday, Memorial
Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas
Day.
When you
purchase or redeem shares, your transaction will be priced based on the next
calculation of NAV after your order is placed. This may be higher,
lower or the same as the NAV from the previous day.
Madison
uses the market value of the securities in each Fund to calculate
NAV. Madison obtains the market value from one or more established
pricing services. The Funds maintain a pricing committee to review
market value of portfolio securities to determine whether or not prices obtained
from the pricing services are fair. In accordance with policies
approved by the Board of Trustees of the Funds, the pricing committee may
determine that the “fair value” of a particular security is different than the
market value provided by the pricing service. Although this would be
an unusual occurrence for the types of securities held by the Funds, this may
occur, for example, due to events or information not known to the pricing
service or due to events occurring in other parts of the world. In
using fair value pricing, the Funds’ goal is to prevent share transactions from
occurring at a price that is unrealistically high or low based on information
known but not reflected in the “market” price of portfolio securities calculated
at the close of the New York Stock Exchange.
SHAREHOLDER
INFORMATION
Purchase
and Redemption Procedures
Information
regarding how to purchase and sell shares in any Madison Mosaic Fund (including
the Funds) is provided in a separate brochure entitled, “Madison
Mosaic’s Guide to
Doing Business,” which is incorporated by reference into this
prospectus.
Dividends
and Distributions
The
Funds’ net income is declared as dividends monthly. Dividends are
paid in the form of additional shares credited to your account at the end of
each calendar month, unless you elect in writing to receive a monthly dividend
check or payment by electronic funds transfer. Any net realized
capital gains would be distributed at least annually and like dividends, are
paid in the form of additional shares credited to your account, unless you elect
otherwise. Please refer to “Madison
Mosaic’s Guide to
Doing Business” for more information about dividend distribution
options.
Frequent
Purchases and Redemptions of Fund Shares
General
Rule. Madison Mosaic Funds discourage investors from using the
Funds to frequently trade or otherwise attempt to “time” the
market. As a result, the Funds reserve the right to reject a purchase
or exchange request for any reason.
16
Market Timing. It
is the policy of Madison Mosaic Funds to block shareholders or potential
shareholders from engaging in harmful trading behavior, as described below, in
any Madison Mosaic Fund (including the Funds). To accomplish this, the Funds
reserve the right to reject a purchase or exchange request for any reason,
without notice. This policy does not affect a shareholder’s right to redeem an
account.
Identifiable Harmful Frequent
Trading and Market-Timing Activity. Madison Mosaic Funds
defines harmful trading activity as that activity having a negative effect on
portfolio management or Fund expenses. For example, a Fund subject to
frequent trading or “market-timing” must maintain a large cash balance in order
to permit the frequent purchases and redemptions caused by market-timing
activity. Cash balances must be over and above the “normal” cash
requirements the Fund keeps to handle redemption requests from long-term
shareholders, to buy and sell portfolio securities, etc. By forcing a
Fund’s portfolio manager to keep greater cash balances to accommodate market
timing, the Fund may be unable to invest its assets in accordance with the
Fund’s investment objectives. Alternatively, harmful trading activity
may require frequent purchase and sale of portfolio securities to satisfy cash
requirements. To the extent market-timing activity of this sort
requires the affected Fund to continually purchase and sell securities, the
Fund’s transaction costs will increase in the form of brokerage commissions and
custody fees. Finally, frequent trading activity results in a greater
burden on the affected Fund’s transfer agent, increasing transfer agent expenses
and, if not actually raising Fund expenses, at least preventing them from being
lowered.
For all
of the above reasons, the Funds monitor cash flows and transfer agent activity
in order to identify harmful activity. Furthermore, when approached
by firms or individuals who request access for market timing activities, the
Funds decline such requests; when trades are attempted without such courtesy,
the Funds make every effort to block them and prohibit any future investments
from the source of such trades. The Funds do not define market-timing
by the frequency or amount of trades during any particular time
period. Rather, the Funds seek to prevent market-timing of any type
that harms the Funds in the manner described above.
The Funds
do not currently impose additional fees on market timing activity, nor do they
restrict the number of exchanges shareholders can make, although the right to do
so is reserved upon notice in the future. The Funds do not
specifically define the frequency of trading that will be considered “market
timing” because the goal is to prevent any harm to long-term investors that is
caused by any out-of-the-ordinary trading or account activity. As a
result, when the Funds identify any shareholder activity that causes or is
expected to cause the negative results described above, the Funds will block the
shareholder from making future investments. In effect, the Funds
allow harmful market-timers to leave Madison Mosaic Funds and shut the doors to
their return.
The Funds
use their discretion to determine whether transaction activity is harmful based
on the criteria described above. Except as described below, the Funds
do not distinguish between shareholders that invest directly with a Fund or
shareholders that invest with Madison Mosaic Funds through a broker (either
directly or through an intermediary account), an investment adviser or other
third party as long as the account is engaging in harmful activity as described
above.
Other Risks Associated with Market
Timing. Moving money in and out of Funds on short notice is a
strategy employed by certain investors who hope to reap profits from short-term
market fluctuation. This is not illegal, but is discouraged by many
funds since it can complicate fund management and, if successfully employed,
have a negative impact on performance. In particular, a successful
“market-timer” could, over time, dilute the value of fund shares held by
long-term investors by essentially “siphoning off” cash by frequently buying
fund shares at an
17
NAV lower
than the NAV at which the same shares are redeemed. Nevertheless, the
success of any market-timer is not considered by Madison Mosaic
Funds. Rather, the Funds will block ALL identifiable harmful frequent
trading and market-timing activity described above regardless of whether the
market-timer is successful or unsuccessful. In any event, investors
in any of the Madison Mosaic Funds should be aware that dilution caused by
successful market timing by some shareholders is a risk borne by the remaining
shareholders.
Exceptions or Other
Arrangements. It is possible that a Fund will not detect
certain frequent trading or market timing activity in small amounts that,
because of the relatively small size of such activity, is subsumed by the normal
day-to-day cash flow of the Fund (see the section above entitled “Other Risks
Associated with Market Timing”). However, the Funds believe their
procedures are adequate to identify any market timing activity having the
harmful effects identified in the section entitled “Identifiable Harmful
Frequent Trading and Market-Timing Activity” regardless of the nature of the
shareholder or method of investment in Madison Mosaic Funds.
Because
the Funds discourage market timing in general, Madison Mosaic Funds does not
currently, nor does it intend to, have any arrangements or agreements, formal or
informal, to permit any shareholders or potential shareholders to directly or
indirectly engage in any type of market-timing activities, harmful or
otherwise.
Although
the Funds believe reasonable efforts are made to block shareholders that engage
in or attempt to engage in harmful trading activities, the Funds cannot
guarantee that such efforts will successfully identify and block every
shareholder that does or attempts to do this.
TAXES
Federal
Taxes
Each Fund
will distribute to shareholders 100% of its net income and net capital gains, if
any. The capital gains distribution is determined as of October
31st each
year and distributed annually.
Dividends
and capital gains distributions will be taxable to you. In January
each year, the Funds will send you an annual notice of dividends and other
distributions paid during the prior year. Capital gain distributions
can be taxed at different rates depending on the length of time the securities
were held.
When a
Fund makes a distribution, the Fund’s NAV decreases by the amount of the
payment. If you purchase shares shortly before a distribution, you
will, nonetheless, be subject to income taxes on the distribution, even though
the value of your investment (plus cash received, if any) remains the
same.
Fund
distributions are expected to be primarily distributions of net
income.
State
and Local Taxes
In most
states, the dividends and any capital gains you receive from the Funds will be
subject to state and local taxation.
Taxability
of Transactions
Your
redemption of Fund shares may result in a taxable gain or loss to you, depending
on whether the redemption proceeds are more or less than what you paid for the
redeemed shares.
18
An
exchange of Fund shares for shares in any other Madison Mosaic Fund generally
will have similar tax consequences.
Certification
of Tax Identification Number
Account
applications without a social security number will not be
accepted. If you do not provide a valid social security or tax
identification number, you may be subject to federal withholding at a rate of
28% of your Fund distributions. Any fine assessed against the Funds
that results from your failure to provide a valid social security or tax
identification number will be charged to your account. You should
retain all statements received from the Funds to maintain accurate records of
your investments.
This
section is not intended to be a full discussion of federal, state or local
income tax laws and the effect of such laws on you. There may be
other tax considerations applicable to a particular investor. You are
urged to consult with your own tax advisor. In addition, please see
the SAI for more information about taxes.
FINANCIAL
HIGHLIGHTS
The
following financial highlights tables are intended to help you understand each
Fund’s financial performance for the past five years. Certain
information reflects financial results for a single Fund share. The
total returns in the table represent the rate that an investor would have earned
(or lost) on an investment in each Fund, assuming reinvestment of all dividends
and distributions. This information has been derived from financial
statements audited by Grant Thornton LLP, whose report dated February 25, 2010,
along with the Funds’ financial statements, is included in the annual report
which is available upon request.
GOVERNMENT
FUND
|
Year
Ended December 31,
|
|||||
|
2009
|
2008
|
2007
|
2006
|
2005
|
|
|
Net
asset value, beginning of period
|
$10.81
|
$10.30
|
$9.94
|
$9.95
|
$10.16
|
|
Investment
operations:
|
|||||
|
Net
investment income
|
0.27
|
0.32
|
0.33
|
0.31
|
0.28
|
|
Net
realized and unrealized gain (loss) on investments
|
(0.15)
|
0.51
|
0.36
|
(0.01)
|
(0.21)
|
|
Total
from investment operations
|
0.12
|
0.83
|
0.69
|
0.30
|
0.07
|
|
Less
distributions:
|
|||||
|
From
net investment income
|
(0.27)
|
(0.32)
|
(0.33)
|
(0.31)
|
(0.28)
|
|
From
net capital gains
|
(0.03)
|
--
|
--
|
--
|
--
|
|
Total
distribution
|
(0.30)
|
(0.32)
|
(0.33)
|
(0.31)
|
(0.28)
|
|
Net
asset value, end of period
|
$10.63
|
$10.81
|
$10.30
|
$9.94
|
$9.95
|
|
Total
return (%)
|
1.19
|
8.17
|
7.10
|
3.07
|
0.69
|
|
Ratios
and supplemental data
|
|||||
|
Net
assets, end of period (in
thousands)
|
$4,300
|
$5,071
|
$2,986
|
$3,055
|
$3,248
|
|
Ratio
of expenses to average net assets (%)
|
0.69
|
0.78
|
1.15
|
1.19
|
1.19
|
|
Ratio
of net investment income to average net
assets (%)
|
2.55
|
3.00
|
3.30
|
3.11
|
2.75
|
|
Portfolio
turnover (%)
|
38
|
67
|
18
|
41
|
43
|
19
ORE
BOND FUND
|
Year
Ended December 31,
|
|||||
|
2009
|
2008
|
2007
|
2006
|
2005
|
|
|
Net
asset value, beginning of period
|
$6.74
|
$6.58
|
$6.44
|
$6.46
|
$6.64
|
|
Investment
operations:
|
|||||
|
Net
investment income
|
0.21
|
0.27
|
0.26
|
0.24
|
0.23
|
|
Net
realized and unrealized gain (loss) on investments
|
0.02
|
0.16
|
0.14
|
(0.02)
|
(0.18)
|
|
Total
from investment operations
|
0.23
|
0.43
|
0.40
|
0.22
|
0.05
|
|
Less
distributions from net investment income
|
(0.21)
|
(0.27)
|
(0.26)
|
(0.24)
|
(0.23)
|
|
Net
asset value, end of period
|
$6.76
|
$6.74
|
$6.58
|
$6.44
|
$6.46
|
|
Total
return (%)
|
3.43
|
6.80
|
6.41
|
3.48
|
0.77
|
|
Ratios
and supplemental data
|
|||||
|
Net
assets, end of period (in
thousands)
|
$12,501
|
$5,188
|
$4,523
|
$4,610
|
$5,602
|
|
Ratio
of expenses to average net assets (%)
|
0.70
|
0.80
|
1.12
|
1.10
|
1.08
|
|
Ratio
of net investment income to average net
assets (%)
|
3.13
|
4.18
|
4.05
|
3.70
|
3.49
|
|
Portfolio
turnover (%)
|
16
|
36
|
41
|
60
|
60
|
20
Madison
Mosaic Income Trust has a statement of additional
information (“SAI”), which is incorporated by reference into this
prospectus, that includes additional information about each
Fund. Additional information about each Fund’s investments is
available in the Funds’ annual and semi-annual reports to shareholders. In the
Funds’ annual report, you will find a discussion of the market conditions and
investment strategies that significantly affected the performance of the Funds
during their last fiscal year. The SAI, the Funds’ annual and semi-annual
reports and other information about the Funds are available without charge by
calling 1-800-368-3195, or by visiting the Funds’ Internet site at
http://www.mosaicfunds.com. Use the shareholder service number below
to make shareholder inquiries.
You may
also review and copy information about the Funds (including the SAI) at the
SEC’s Public Reference Room in Washington, DC. Information about the
operation of the Public Reference Room may be obtained by calling the SEC at
1-202-551-8090.
Reports
and other information about the Funds are also available on the EDGAR Database
on the SEC’s Internet site at http://www.sec.gov. Copies of this
information may also be obtained, upon payment of a duplicating fee, by
electronic request at the following email
address: publicinfo@sec.gov, or by writing the SEC’s Public Reference
Section, Washington, DC 20549-1520.
In
addition to the SAI, “Madison
Mosaic’s Guide to Doing Business,” which provides information on how to
purchase and sell shares in any Madison Mosaic Fund, is incorporated by
reference into this prospectus.
Transfer
Agent
Madison
Mosaic Funds
c/o U.S.
Bancorp Fund Services, LLC
P.O. Box
701
Milwaukee,
WI 53201-0701
www.mosaicfunds.com
Telephone
Numbers
Shareholder
Service
Toll-free
nationwide: (888) 670
3600
Mosaic
Tiles (24 hour automated information)
Toll-free
nationwide: (800) 336
3063
SEC File
Number 811-03616
Document
comparison by Workshare Professional on Thursday,
April 15, 2010 1:48:21 PM
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