Summary

• The Madison Covered Call & Equity Income Fund (Class Y) gained 5.2% during the first quarter of 2026, outperforming the S&P 500, which lost 4.3% in the same period.
• Conflict in Iran continues to limit the amount of crude oil that can exit the Persian Gulf via the Strait of Hormuz, causing global crude prices to rise significantly.
• Attacks on energy infrastructure such as refineries and liquified natural gas facilities have taken 11 million barrels per day of productive capacity off-line, representing over 10% of global supply.
• U.S. market leadership shifted away from Artificial Intelligence infrastructure mega-cap growth stocks and toward real asset investments such as commodity-related companies as valuations in the AI area became extremely expensive.
• Madison Asset Management believes that inflation will remain higher for longer and rate cut decisions will be delayed, making a defensive posture the most prudent approach for equity markets.

Is the barrel of crude oil half full or half empty?

As we write this update, the conflict in Iran continues to limit the amount of crude oil and other byproducts that can exit the

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