Baird LargeCap Fund

OVERVIEW
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The Baird LargeCap Fund's (sub-advised by L2 Asset Management LLC) decision-making process is primarily quantitative and driven by proprietary models that rank securities based on fundamental measures of value, past performance and indicators of recent positive changes.

In addition to a quantitative assessment, the portfolio manager evaluates the outputs from the models based on regular fundamental analyses and uses such evaluation to identify process-oriented items to improve the model. More specifically, characteristics or items identified as potential risks or opportunities on a fundamental level are tested to see if they are actionable and can be part of a repeatable investment process.

In selecting investments, the process focuses on securities that are out of favor in the marketplace but have experienced favorable risk-adjusted returns. While the portfolio manager considers both “growth” and “value” factors in its investment processes, the selection process may have a tendency to be more value-oriented.

The Net Expense Ratio is the Gross Expense Ratio minus any reimbursement from the advisor. The advisor has contractually agreed to waive its fees and/or reimburse expenses at least through April 30, 2016, to the extent necessary to ensure that the total operating expenses do not exceed 1.00% of the Investor Class's average daily net assets and 0.75% of the Institutional Class's average dialy net assets. Investor class expense ratios include a 0.25% 12b-1 fee.

PERFORMANCE
Month-End Quarter-End
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Performance data quoted represents past performance. Past performance does not guarantee future results. Investment return and principal value of an investment in the fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. The funds' current performance may be lower or higher than the performance data quoted.

Subadvised by Baird Kailash: The Fund invests primarily in equity securities of large-capitalization companies. At times, large-cap stocks may underperform as compared to small- or mid-cap stocks, and vice versa. The subadvisor's portfolio decision-making process is primarily quantitative and driven by proprietary models that rank securities based on fundamental measures of value, past performance and indicators of recent positive changes. The success of the quantitative investment methodologies and processes employed by the subadvisor depends on the analyses and assessments that were used in developing such methodologies and processes, as well as on the accuracy and reliability of models and data provided by third parties. The Fund may invest up to 15% of its total assets in U.S. dollar-denominated foreign securities and ADRs. Foreign investments involve additional risks such as currency rate fluctuations, political and economic instability, and different and sometimes less strict financial reporting standards and regulation.

Prior to 12/23/2013, the LargeCap Fund was managed in accordance with a different investment strategy. Baird Kailash became the Fund's subadvisor effective 12/23/2013. The performance results shown are from periods during which the Fund was managed by the advisor prior to the retention of a subadvisor.

The Net Expense Ratio is the Gross Expense Ratio minus any reimbursement from the advisor. The advisor has contractually agreed to waive its fees and/or reimburse expenses at least through April 30, 2016, to the extent necessary to ensure that the total operating expenses do not exceed 1.00% of the Investor Class's average daily net assets and 0.75% of the Institutional Class's average daily net assets. Investor class expense ratios include a 0.25% 12b-1 fee.

The S&P 500 index is an unmanaged, market capitalization-weighted index of 500 common stocks widely regarded to be representative of the U.S. market in general. Returns include reinvestment of dividends. It is not possible to invest directly in an index.

MANAGEMENT