INVESTMENTS®

September 30, 2016

The Changing Tides Look Hauntingly Familiar

Scientists providing content to Wikipedia define tides as the rise and fall of sea levels caused by the combined effects of gravitational forces exerted by the moon, the sun and the rotation of the earth. Tides vary on timescales, ranging from hours to years, due to a number of factors. Over time these experts have developed gauges which accurately predict tidal flows, thereby assisting with coastal navigation. Investors also use gauges to monitor economic fundamentals, along with other factors, in an attempt to identify sea changes likely to impact investment returns. Our measure of reference is relative investment performance compared against the Bank of America Merrill Lynch 1-22 Year Municipal Index, which reported a -0.17% return during the third quarter.

The past three months seemed hauntingly familiar as continued economic improvement within the U.S. was once again overshadowed by the unrelenting gravitational force of central bank activity. Our anticipation of higher interest rates did not materialize despite positive employment trends, housing gains and energy price stability. The Federal Reserve (Fed) once more delayed raising its policy rate, citing the need to remain patient given the uncertain pace of domestic growth, the low rate of inflation and the shaky global economy. The ambiguous nature of “what’s next” increased Treasury market volatility, which in turn led to relative changes in tax-exempt valuations, especially for shorter maturities that will be impacted by upcoming money market reforms.

Tax-exempt investors able to tolerate bouts of instability associated with lower quality municipal (muni) bonds were rewarded with positive returns during the quarter, mainly due to the incremental yield earned on this riskier segment of the market. However, most tax-exempt sectors generated slightly negative returns for the period as interest income did not cover the price erosion caused by rising interest rates. We, like other investors unwilling to stomach the possibility of seasickness, made it through the quarter with relative returns comparable to Treasuries. The comparative stability of muni bond prices was the result of robust demand for muni paper which was offset by a healthy supply of new issues. Revenue bonds posted higher returns than general obligation bonds as reports mounted of state and local government fiscal challenges, specifically the funded status of pensions and budget shortfall due to lower tax collections. Despite intensifying tide patterns, investors positioned in riskier states such as Connecticut, Illinois and New Jersey were rewarded as risk premiums decreased.

Portfolio Performance and Positioning

Our conservative navigation through the familiar quarterly tide change generated a return of -0.42% (Class Y) in comparison to -0.17% for the Bank of America Merrill Lynch 1-22 Year Municipal Index. The disappointing relative performance was the result of our longer-than-benchmark duration, less-than-benchmark exposure to callable bonds and an underweight to lower quality paper. Our conservative, up-in-quality bias detracted from relative performance as lower quality

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Past performance does not predict future results. Please refer to the final two pages of this piece which contain current performance information for the fund, the risks of investing in the fund and a complete list of the fund’s individual portfolio holdings as of quarter end. Individual portfolio holdings are identified to illustrate our approach to investing the fund’s portfolio and are not intended to represent a recommendation to buy or sell any such security.

Madison Tax-Free National Bond Fund Investment Strategy Letter

Jeff Matthias, CFAPortfolio ManagerIndustry since 1990

Michael Peters, CFAPortfolio ManagerIndustry since 1987

bonds produced the highest returns over the past three months. Additive to performance was the yield advantage attributable to a longer maturity profile and limited exposure to the higher education and school district sectors, both of which came under pressure during the quarter.

We continue to position the portfolio in anticipation of choppy conditions, especially higher interest rates and periods of heighted volatility, which are likely to impact valuations. The portfolio’s slightly longer duration compared to the benchmark provides the dual potential for earning incremental income and benefiting from price stability as securities roll down the yield curve toward maturity. We continue to favor bonds with 5% coupons and call features since both characteristics are generally less interest rate sensitive than lower coupon bullet maturities. Lastly, portfolio holdings are well-diversified and tilted toward the less volatile sectors and overall high credit quality.

Outlook

Scientists suggest tidal phenomena is not limited to the oceans, but can occur in other systems whenever a gravitational field that varies in time and space is present. Since global central banks are likely the gravitational force behind the lengthy low rate environment, we continue to monitor conditions which may inform us of an incoming tidal wave (we call this a market dislocation). As such, our outlook for the U.S. economy, inflation and Fed policy decisions leads us to believe interest rates will likely move higher in coming quarters. A Fed-facilitated rate increase is likely to flatten the yield curve with the two-year part of the curve most vulnerable to a shift higher. As rates rise, tax-exempt valuations as measured by muni/Treasury yield ratios are likely to fall, thereby supporting performance of municipal bonds.

We’ve become more sensitive to credit fundamentals as state and local governments face increasing fiscal challenges precipitated by revenue shortfalls and more pronounced structural imbalances related to pension liabilities. In contrast to the past few years, investors seem to be in the early stages of differentiating muni credits based upon fundamental analysis rather than an indiscriminate grab for yield. Our view is further supported by (1) recently revised rating methodologies specific to lease-backed and moral obligation bonds, in part influenced by recent bankruptcy cases; (2) increasing news regarding the dire underfunded status of pension obligations; and (3) recent rating downgrades of well-known municipalities (e.g., Hartford) and states (e.g., Alaska and Illinois). As rates increase, we anticipate a bit of supply pressure from increased ‘new money’ issuance (in comparison to debt refunding activity) as fiscally conservative municipalities scramble to lock-in low rates for long-delayed projects.

As captains of your ship, we remain committed to navigating the coastal muni waters using our time-tested approach for making investment decisions. Since our preferred course today is avoiding the potentially treacherous waters, our emphasis remains focused on protection and safety. We aim to accomplish this by positioning high quality issuers along the most attractive parts of the yield curve and taking advantage of sea-tide changes that we deem to be temporary market dislocations.

madisonfunds.com | madisonadv.com888.971.7135

Jeff Matthias Mike Peters

Bonds are subject to certain risks including interest-rate risk, credit risk and inflation risk. As interest rates rise, the prices of bonds fall. Long-term bonds are more exposed to interest-rate risk than short-term bonds. Although the information in this report has been obtained from sources that the firm believes to be reliable, we do not guarantee its accuracy, and any such information may be incomplete or condensed. All opinions included in the report constitute the authors’ judgment as of the date of this report and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. Madison Funds are distributed by MFD Distributor, LLC. Madison Asset Management, LLC. ©October 6, 2016

Jeffrey Matthias, CFA Portfolio Manager Industry since 1987

Michael Peters, CFA Portfolio Manager Industry since 1987

1 Growth of $10,000 for the years shown is calculated at NAV and assumes all dividends and capital gain distributions were reinvested. It does not take into account sales charges or the effect of taxes. 2 Average annual total returns and calendar year returns assume all distributions are reinvested and reflect applicable fees and expenses. Index returns reflect broad measures of market performance compared the fund and reflect no deduction for sales charges, account fees, expenses or taxes. You cannot invest directly in an index.3 Expense ratios are based on the fund’s most recent prospectus.Performance data shown represents past performance. Investment returns and principal value will fluctuate, 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.

2016201520142013201220112010200920082007

$14,621

$10,000

The Value of Long-Term Investing

Sep 30, 2016

Madison Tax-FreeNational Fund

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Experienced Management

Fund Features

• Fund seeks income from municipal bonds and to distribute this income as tax-free dividends.

• Buys investment-grade bonds of states, municipalities and limited purpose bonds

• Seeks income that is exempt from federal income tax

• Focus on managing risk

Average Annual Total Returns2 (%)Three Months YTD 1 Yr 3 Yr 5 Yr 10 Yr Since Inception

Class Y -0.42 3.50 4.78 4.74 3.58 3.87 5.85BofAML 1-22 yr US Muni Securities Index -0.17 3.41 4.85 4.79 4.00 4.65 -

Bloomberg Barclays Muni Index -0.30 4.01 5.58 5.54 4.48 4.75 7.21

Distribution Frequency

Monthly

Risk Measure (10-year)

Standard Deviation 3.9%

Downside Capture 113.7%

Upside Capture 95.3%

Total Net Assets

$27.6 Million

Portfolio Turnover

15%

Total Number of Holdings

64

Class Ticker Inception Date Exp. Ratio3

Y GTFHX 12/30/82 0.75%

Calendar Year Returns2 (%)2008 2009 2010 2011 2012 2013 2014 2015

Class Y 1.65 7.25 1.46 9.07 5.48 -3.59 7.88 2.94BofAML 1-22 yr US Muni Securities Index 0.66 10.86 2.59 9.83 5.65 -1.54 7.46 3.07

Bloomberg Barclays Muni Index -2.47 12.91 2.38 10.70 6.78 -2.55 9.05 3.30

Characteristics (years)Effective Duration 5.3

Avg. Maturity 9.3

Yields30-day SEC Yield 0.99%

30-day Effective Yield 2.33%

madisonfunds.com

Standard Deviation measures dispersion from the an average, which, for a mutual fund, depicts how widely the returns varied over a certain period of time. Higher deviation represents higher volatility. Downside Capture Ratio measures a fund’s performance in down markets relative to its benchmark. It is calculated by taking the security’s downside capture return and dividing it by the benchmark’s downside capture return over the time period. Upside Capture Ratio measures a fund’s performance in up markets relative to its benchmark. It is calculated by taking the security’s upside capture return and dividing it by the benchmark’s upside capture return over the time period. Effective Duration provides a measure of a fund’s interest-rate sensitivity. The longer a fund’s duration, the more sensitive the fund is to shifts in interest rates. Average Maturity is computed by weighting the maturity of each security in the portfolio by the market value of the security, then averaging these weighted figures. SEC 30-day Yield represents net investment income earned by a fund over a 30-day period, expressed as an annual percentage rate based on the fund’s share price at the end of the 30-day period. It is calculated based on the standardized formula set forth by the SEC. 30-day Effective Yield is a hypothetical figure that estimates what the yield would be if an investor continued to reinvest dividends at the current 30-day yield for one year. Calculated by annualizing dividends paid during the last 30 days of the period. It assumes that income earned from the fund’s investments is reinvested and compounded. Portfolio Turnover is a measure of the trading activity in an investment portfolio—how often securities are bought and sold by a portfolio. It is calculated at the fund level and represents the entire period ending 10/31/2015.An investment in the fund is subject to risk and there can be no assurance that 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: interest rate risk, call risk, risk of default, liquidity risk, legislative risk, capital gains tax-related risk, alternative minimim tax risk, and risks of general oblications versus limited purpose bonds. Income from the Tax-Free National Fund may be subject to the federal Alternative Minimum Tax. Tax-Free National Fund income may be subject to state and municipal taxes. Mutual funds that invest in bonds are subject to certain risks including interest rate risk, credit risk, and inflation risk. As interest rates rise, the prices of bonds fall. Long-term bonds are more exposed to interest-rate risk than short-term bonds. Unlike bonds, bond funds have ongoing fees and expenses.More detailed information regarding these risks can be found in the fund’s prospectus.For more complete information about Madison Funds®, including charges and expenses, obtain a prospectus from your financial 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. The prospectus contains this and other information about funds and should be read carefully before investing.

Madison Funds are distributed by MFD Distributor, LLC and may be purchased directly from the fund or through your investment professional. Portfolio data is as of the date of this piece unless otherwise noted and holdings are subject to change.

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

MF-GTFHX-093016

Shareholder Services Madison Funds Post Office Box 8390 Boston, MA 02266-8390 800.877.6089

Consultant and Advisor Services550 Science DriveMadison, WI 53711 888.971.7135

Sector allocation is rounded to the nearest 0.1%.

%MARGATE FL 5% 01 Jul 2025 3.6

ANDERSON CNTY SC SCH DIST 1 5% 01 Mar 2025 3.3

MAPLE WI SCH DIST 5% 01 Apr 2024 2.9

ROCKVILLE MD 5% 01 Jun 2024 2.8

PORT SAINT LUCIE FL UTILITY RE 5% 01 Sep 2027 2.6

MONTGOMERY CNTY MD REVENUE AUT 5% 01 May 2031 2.5

WICHITA KS 5% 01 Dec 2024 2.4

MIAMI DADE CNTY FL SPL OBLIG 5% 01 Mar 2025 2.3

ORLANDO FL UTILITIES COMMISSIO 5% 01 Oct 2022 2.3

CLEVELAND CUYAHOGA CNTY OH POR 5% 01 Jul 2024 2.2

Portfolio Mix

Top Ten Holdings

madisonfunds.com

58.1% Revenue

37.4% General Obligation

4.3% Certificate Participation

0.2% Cash