Bond Funds That Take the Drama Out of Uncertain Markets

Baird’s All-Weather Fixed Income Funds Deliver Outperformance Through Changing Market Environments

The "will they or won’t they" rate-hike drama of the past decade has given way to questions of "how often and by how much" as the Fed continues on a path to normalization. Along with continued rate-hike drama, there is no shortage of bond market "noise" making some bond investors anxious and others rediscovering why they held bonds in the first place.

Baird Advisors – the team that manages Baird Funds' fixed income offerings – takes an all-weather approach designed to control risk while adding incremental value through yield curve positioning, sector allocation, security selection and competitive execution.

Having worked together for a remarkable 35 years, the core leadership of the team has tested and proven this process through various market environments.

Consistency Is Key

The Percentage of Time Funds Outperform

Source: Morningstar Direct as of December 31, 2018.

As of December 31, 2018, the Baird Short-Term Bond Fund Institutional was rated 3 stars for the 3-year period; 4 stars for the 5-year period; 3 stars for the 10-year period and 3 stars overall. 

For each fund with at least a three year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.

Morningstar categories: Baird Core Plus and Aggregate Bond Funds are ranked within the Intermediate-Term Bond Fund category (Overall: 876 funds, 3-year period: 876, 5-year period: 767, 10-year period: 560). Baird Short-Term Bond Fund is ranked within the Short-Term Bond Fund category (Overall: 472 funds, 3-year period: 472, 5-year period: 405, 10-year period: 263). Baird Ultra Short Bond Fund is ranked with the Ultrashort Bond Fund category (Overall: 145 funds, 3-year period: 145 funds; 5-year period: 122 funds.) The Baird Core Plus and Aggregate Bond Funds since inception net returns are based on performance from September 30, 2000, through December 31, 2018.  The Baird Short-Term Bond Fund since inception net return is based on performance from August 31, 2004, through December 31, 2018. The Baird Ultra Short Bond Fund since inception net return is based on performance from December 31, 2013, through December 31, 2018.

Past performance does not guarantee future results.

Investors should consider the investment objectives, risks, charges and expenses of each fund carefully before investing. This and other information is found in the prospectus and summary prospectus. For a prospectus or summary prospectus, contact Baird directly at 866-442-2473 or contact your financial advisor. Please read the prospectus or summary prospectus carefully before investing.

Performance data represents past performance and does not guarantee future results. The investment return and principal value of the investment will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance data may be lower or higher than the data quoted. For performance data to the most recent month-end, contact Baird directly at 866-442-2473 or

To read the fund's prospectus or to obtain the fund's performance to the most recent quarter-end, SEC 30-day yield information, any sales charges, maximum sales charges, loads, fees, total annual operating expense ratio, gross of any fee waivers or expense reimbursements as stated in the feed table, please visit the firm's webpage here.