Overview


The Fund is managed through a duration-neutral, risk-controlled approach with a strong emphasis on the long-term perspective. The investment objective of the Fund is to seek an annual rate of total return, before fund expenses, greater than the annual rate of total return of the Bloomberg U.S. Universal Bond Index. The Fund normally invests at least 80% of its net assets in the following types of U.S. dollar-denominated debt securities: 

  • U.S. government and other public sector entities
  • Asset-backed and mortgage-backed obligations of U.S. and foreign issuers
  • Corporate debt of U.S. and foreign issuers

The Fund invests primarily in investment-grade debt securities, but may invest up to 20% of its net assets in non-investment-grade securities.

Awards


Morningstar Medalist RatingTM

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Analyst-Driven %: 100%
Data Coverage %: 100%

The Baird Core Plus Bond (Institutional Class) received a Gold Morningstar Medalist Rating.™  The Fund’s Investor Share Class received a Gold Morningstar Medalist Rating.™

Performance

ALL DATA AS OF 8/31/2023
1 Month 3 Month YTD 1 Year 3 Years 5 Years 10 Years Since Inception
Core Plus Bond Fund -0.51 -0.42 2.28 0.38 -3.65 1.18 2.24 4.67
Bloomberg U.S. Universal Bond Index -0.60 -0.66 1.81 -0.39 -3.96 0.74 1.77 4.01
  • Disclosure

    Performance data quoted represents past performance. Past performance does not guarantee future results. Ivnestment 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.

    The Fund may invest in mortgage- and asset-backed securities which may be subject to prepayment risk and thus may be more sensitive to interest rate changes than other types of debt securities. The Fund may also invest in U.S. dollar-denominated securities issued by foreign issuers which involve additional risks including political and economic instability, differences in financial reporting standards and less regulated securities markets. Non-investment-grade bonds involve greater risk of default and bankruptcy than investment-grade securities. While the U.S. government has historically provided financial support to various U.S. government-sponsored agencies, no assurance can be given that it will do so in the future if it is not obligated by law. A bond's market value may be affected by changes in interest rates – generally, when interest rates rise, the bond's market value declines and when interest rates decline, its market value rises ("interest rate risk").

    The Bloomberg U.S. Universal Bond Index represents the union of the U.S. Aggregate Index, U.S. Corporate High Yield Index Investment Grade 144A Index, Eurodollar Index, U.S. Emerging Markets Index and the non-ERISA eligible portion of the CMBS Index. The index covers USD-denominated, taxable bonds that are rated either investment-grade or high-yield. Some U.S. Universal Index constituents may be eligible for one or more of its contributing subcomponents that are not mutually exclusive. Indices are unmanaged and are not available for direct investment.

    Time periods greater than one year are annualized.

Morningstar Ratings

MORNINGSTAR RATINGS BASED ON RISK ADJUSTED RETURNS AS OF 7/31/2023
Category Overall 3 Year 5 Year 10 Year
Core Plus Bond Fund Intermediate Core-Plus Bond
(551 funds)
(551 funds)
(519 funds)
(368 funds)
  • Disclosure

    The Morningstar Rating™ for funds, or "star rating", is calculated for managed products with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The Morningstar Rating does not include any adjustment for sales loads. The top 10% of products in each product 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. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its 3-, 5-, and 10-year (if applicable) Morningstar Rating metrics. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent 3-year period actually has the greatest impact because it is included in all three rating periods.

    © 2023 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

    The Morningstar Medalist RatingTM is the summary expression of Morningstar’s forward-looking analysis of investment strategies as offered via specific vehicles using a rating scale of Gold, Silver, Bronze, Neutral, and Negative. The Medalist Ratings indicate which investments Morningstar believes are likely to outperform a relevant index or peer group average on a risk-adjusted basis over time. Investment products are evaluated on three key pillars (People, Parent, and Process) which, when coupled with a fee assessment, forms the basis for Morningstar’s conviction in those products’ investment merits and determines the Medalist Rating they’re assigned. Pillar ratings take the form of Low, Below Average, Average, Above Average, and High. Pillars may be evaluated via an analyst’s qualitative assessment (either directly to a vehicle the analyst covers or indirectly when the pillar ratings of a covered vehicle are mapped to a related uncovered vehicle) or using algorithmic techniques. Vehicles are sorted by their expected performance into rating groups defined by their Morningstar Category and their active or passive status. When analysts directly cover a vehicle, they assign the three pillar ratings based on their qualitative assessment, subject to the oversight of the Analyst Rating Committee, and monitor and reevaluate them at least every 14 months. When the vehicles are covered either indirectly by analysts or by algorithm, the ratings are assigned monthly. For more detailed information about these ratings, including their methodology, please go to global.morningstar.com/managerdisclosures/.

    The Morningstar Medalist Ratings are not statements of fact, nor are they credit or risk ratings. The Morningstar Medalist Rating (i) should not be used as the sole basis in evaluating an investment product, (ii) involves unknown risks and uncertainties which may cause expectations not to occur or to differ significantly from what was expected, (iii) are not guaranteed to be based on complete or accurate assumptions or models when determined algorithmically, (iv) involve the risk that the return target will not be met due to such things as unforeseen changes in management, technology, economic development, interest rate development, operating and/or material costs, competitive pressure, supervisory law, exchange rate, tax rates, exchange rate changes, and/or changes in political and social conditions, and (v) should not be considered an offer or solicitation to buy or sell the investment product. A change in the fundamental factors underlying the Morningstar Medalist Rating can mean that the rating is subsequently no longer accurate.

Distributions

Time Period
Type Record Date Reinvest Date Payable Date Amount per Share ($) Reinvest Price ($)
Income 8/23/2023 8/24/2023 8/25/2023 0.02936142 9.78
Income 7/24/2023 7/25/2023 7/26/2023 0.03059113 9.95
Income 6/23/2023 6/26/2023 6/27/2023 0.02845854 9.99
Income 5/24/2023 5/25/2023 5/26/2023 0.02886928 9.89
Income 4/24/2023 4/25/2023 4/26/2023 0.02863384 10.16
Income 3/24/2023 3/27/2023 3/28/2023 0.02929862 10.03
Income 2/23/2023 2/24/2023 2/27/2023 0.02748850 9.88
Income 1/24/2023 1/25/2023 1/26/2023 0.02224552 10.19

Portfolio Characteristics

ALL DATA AS OF 8/31/2023
Fund Information Fund Index
*30-Day SEC Yield (%) 4.78 N/A
**Portfolio Avg. Yield to Worst (%) 5.57 5.32
Effective Duration (Years) 6.01 6.01
Effective Maturity (Years) 8.14 8.27
Average Coupon (%) 3.48 3.20
Annual Turnover Rate (%) 34.62 N/A
Number of Holdings 1,519 20,116
Average Portfolio Quality A+ AA-
ALL DATA AS OF 8/31/2023
Quality Profile Fund Index
U.S. Treasury 17.1% 35.1%
U.S. Agency 19.8% 24.6%
AAA 12.1% 3.4%
AA 3.4% 3.8%
A 13.5% 12.8%
BBB 30.6% 14.0%
Below BBB 3.1% 6.4%
Not Rated 0.4% 0.1%
  • Disclosure

    The quality profile is calculated on a market value-weighted basis. Per the Baird Funds prospectus, each security in the Fund is assigned the highest credit quality rating provided by a nationally recognized statistical rating organization (e.g. S&P, Moody’s, Fitch). For pre-refunded securities, the reported credit quality reflects the highest reported rating from S&P, Moody’s or Fitch for the underlying collateral. Per the Bloomberg index controlling rating methodology, each security in the index is assigned a rating using S&P, Moody’s, and Fitch (middle of three ratings, lower of two ratings, or singular rating if rated by one rating agency). Ratings are measured on a scale that generally ranges from AAA (highest) to D (lowest).

    Totals sum based on unrounded data. Breakouts are shown rounded to the nearest tenth and may not visually sum.

    *The 30-Day SEC Yield reported above is as of the most recent month end.

    **‚ÄčThe yield-to-worst (YTW) is the lowest estimated yield that can be received on a callable bond at current market price absent a default. The YTW is calculated by using the lower of yield-to-maturity or yield-to-call (an earlier date that the issuer could redeem the bond). The weighted average YTW of a Fund does not include fund fees and expenses.