white papers

Mid Caps: An Opportune Time to Allocate to this Overlooked Asset Class?

Coming out of a downturn, mid caps have historically outperformed large and small caps. In this article, we review the characteristics, attributes, and performance track record of this overlooked asset class.

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Bond Investing in a Volatile World: How to Manage All Fixed Income Risks with Quality, Nimbleness, and Active Management

In this backdrop of rising rates and elevated risks, fixed income investors of all types experienced some degree of price movement within their portfolio. Investors that had thrown money at high-yielding bonds of lower quality or longer maturities suddenly found themselves down 15%, 20%, or more. The importance of risk awareness became painfully clear. In this paper, we discuss the importance of managing all risks in fixed income and why it matters to be active, nimble, and up in quality.

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Covered Calls: An Equity Solution for Enhanced Income

In an era of low yields, elevated inflation, and choppy equity markets, some investors are turning to non-traditional methods to generate income and mitigate volatility. Covered call option writing, also known as a “buy-write” strategy, can offer a steady stream of incremental income while reducing downside risk for a portfolio.

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A Captive Guide for Managers

In this guide, insurance portfolio managers Don Miller and Jeff Matthias describe a time-tested approach for steering both young and established insurance companies towards the potential for improved risk-adjusted returns with ample consideration given to an insurer’s unique situation.

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Stock and Bond Market Risk Measures: A Review of Common Risk Statistics

There are many ways to measure risk in a stock or bond portfolio. Investors might look at price volatility, return fluctuation in relation to a benchmark, how a portfolio responds in a down or up market, and more. The following are common statistics investors use to help align their portfolios with their individual risk tolerance and set them up for optimal risk-adjusted returns.

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Risk and Rewards of Rising Rates

As every fixed income investor knows, bond prices fall as rates rise. Obviously, falling prices reduce returns. In today’s low yield environment, portfolio income offers little protection, meaning price changes dominate total return. However, fixed income investors with long time horizons should actually root for higher rates, despite the short term losses incurred.

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Active Management | Gaining a Leg up

The growing popularity of equity index funds and equity index exchange traded funds (ETFs), combined with several academic studies of the costs and benefits of active management versus indexing, have raised questions in the minds of many advisors and investors about the benefits of active equity management. We believe these studies have given “active managers” a bad rap by grouping all active managers into a broad, single universe and not differentiating between those managers who are truly active, and add value, and those managers that call themselves active but offer little opportunity for outperformance, net of fees, based on their true investment style.

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Are You Getting the Most Out of Your International Allocation?

An appropriate allocation to international equities in a multi-asset class portfolio can provide meaningful diversification and performance benefits. Manager selection is a critical component of your allocation strategy and risk management. One under-considered factor: many active and passive international portfolios have significant holdings in large-cap overseas companies with heavy exposure to the U.S. economy, undermining diversification.

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“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.

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 financial institution. Investment returns and principal value will fluctuate.

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