Madison Mosaic Balanced Fund now called Dividend Income Fund

By Susanna Moon

Chicago, Nov. 14 - The board of trustees of the Madison Mosaic Balanced Fund approved changing the fund's name to the Madison Mosaic Dividend Income Fund, according to a 497 filing with the Securities and Exchange Commission.

The investment objective of the fund will not change, just the investment strategies intended to be used by the fund's investment adviser, Madison Investment Advisors, LLC.

The adviser will seek companies with a market capitalization of more than $1 billion and a history of dividends with the ability to increase dividends over time.

The adviser will identify investment opportunities by screening for companies that generally have the following characteristics:

• A dividend yield of at least 100% of the market dividend yield;

• A strong balance sheet;

• A dividend that has been maintained and which is likely to increase; and

• Trade on the high side of the company's relative historical dividend yield, due to issues which the adviser views as short-term.

Under normal market conditions, the newly constituted fund expects to be fully invested in equity securities, but will maintain the flexibility to hold up to 20% of the fund's assets in fixed-income securities when warranted.

The adviser also may write covered call options against equity holdings of up to 25% of the fund's holdings.

Paul Lefurgey, a co-manager, will be replaced by John Brown, vice president of the investment adviser. Jay Sekelsky is still a co-manager.

The investment adviser is based in Madison, Wis.

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