Funds and Performance

PERFORMANCE
Month-End Quarter-End
Share Class:

*The 30-Day SEC Yield does not reflect the impact of any fee waivers (the unsubsidized yield). The current unsubsidized yield for the Ultra Short Bond Fund Institutional Share Class is 0.97%. The current unsubsidized yield for the Ultra Short Bond Fund Investor Share Class is 0.70%.

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.

Prior to 12/23/2014 the LargeCap Fund was managed in accordance with a different investment strategy. Baird Kailish became the Fund's sub-advisor 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 sub-advisor.

The Next Expense Ratio is the Gross Expense Ratio minus any reimbursement from the Advisor

Large Cap Fund - 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 0.25% 12b-1 fee.

Mid Cap Fund - 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 1.10% of the Investor Class's average daily net assets and 0.85% of the Institutional Class's average daily net assets. Investor class expense ratios include 0.25% 12b-1 fee.

Small Cap Fund - 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 1.25% of the Investor Class's average daily net assets and 1.00% of the Institutional Class's average daily net assets. Investor class expense ratios include 0.25% 12b-1 fee.

Ultra Short Bond Fund - The Advisor has contractually agreed to waive management fees in an amount equal to an annual rate of 0.15% of the average daily net assets for the Fund until April 30, 2016 The agreement may only be terminated prior to the end of this term by or with the consent of the Board of Directors of Baird Funds, Inc.

DAILY PRICES & YIELDS
Share Class:

*The 30-Day SEC Yield does not reflect the impact of any fee waivers (the unsubsidized yield). The current unsubsidized yield for the Ultra Short Bond Fund Institutional Share Class is 1.09%. The current unsubsidized yield for the Ultra Short Bond Fund Investor Share Class is 0.85%.

LITERATURE

Bond Funds

 Fact SheetHoldingsSummary ProspectusFund ProspectusAnnual ReportSemiannual ReportSAISOI
Ultra Short Bond Fund
Short-Term Bond Fund
Short-Term Municipal Bond Fund
Intermediate Bond Fund
Quality Intermediate Municipal Bond Fund
Core Intermediate Municipal Bond Fund
Aggregate Bond Fund
Core Plus Bond Fund

Equity Funds

 Fact SheetHoldingsSummary ProspectusFund ProspectusAnnual ReportSemiannual ReportSAISOI
Global Growth Fund N/A
International Growth Fund N/A
LargeCap Fund N/A
MidCap Fund N/A
Small/Mid Cap Value Fund N/A
SmallCap Value Fund N/A
DISTRIBUTIONS

In accordance with IRS rules, mutual funds are required to distribute substantially all net investment income and net capital gains to shareholders. Baird Funds normally distributes net capital gains earned through October 31 to all shareholders before the end of the calendar year. Please see the following tax information documents to assist you in your year-end planning.