A Statement from Madison on the Crisis in Ukraine

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Madison, WI, March 4, 2022 –

To our clients, partners, and colleagues –

Like the rest of the world, Madison Investments is shocked and saddened by the events that have unfolded in Eastern Europe. We want everyone to know we fully support the great people of Ukraine. During these volatile times, we will continue to focus on the investment implications of this unprovoked attack and remain accessible to our clients and partners.

Impact on the economy and markets

The severe economic sanctions imposed on Russia have crippled their ability to conduct business outside their borders. As of this writing, the Ruble has declined by roughly 30% post-invasion.

These sanctions will affect global markets as well, particularly in Europe, where, as a whole, Europe imports nearly 50% of its natural gas and 25% of its oil from Russia. An energy crisis is unfolding and will have a significant impact on the region’s economic growth.

Energy and other commodities prices have increased significantly. Headline inflation will likely remain uncomfortably sticky deeper into 2022, putting pressure on U.S. consumer spending. Materials and energy-intensive industries will likely see profit margins squeezed as well. As of this writing, U.S. markets are up since Russia invaded Ukraine, with the S&P 500 returning 3.3% (-8.2% YTD) and the Bloomberg U.S. Aggregate Bond Index up 0.7% (-3.6% YTD).

Managing assets in this unpredictable Environment

Investing – or just staying invested – can cause elevated anxiety during times of uncertainty. Heightened volatility and big intra-day market swings can ignite panic in some investors and have others revisiting their current asset allocation and risk tolerance assessments.

We would like our clients, partners, and employees to know we continue to monitor this situation closely and the resulting investment implications.

“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”). MAM and MIA 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 firm of the Financial Industry Regulatory Authority. The home office for each firm listed above is 550 Science Drive, Madison, WI 53711. Madison’s toll-free number is 800-767-0300.

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