The Fund invests in a broadly diversified portfolio of federally tax-exempt municipal obligations. The Fund normally invests at least 80% of its net assets in municipal bonds and may invest in all types including pre-refunded bonds, general obligation bonds, revenue bonds, municipal lease participations and zero coupon bonds. Baird uses a value-oriented strategy and looks for undervalued municipal securities that offer above-average return characteristics. Market factors evaluated when selecting investments include:

  • the nominal level and trend in interest rates
  • the slope of the municipal yield curve
  • income tax rates
  • market sector valuations
  • credit trends
  • supply and demand flows
  • regional economic strength
  • legal and regulatory trends

The Fund invests primarily in investment-grade municipal obligations but may invest up to 15% of its assets in non-investment-grade obligations.


ALL DATA AS OF 8/31/2023
1 Month 3 Month YTD 1 Year 3 Years Since Inception
Municipal Bond Fund -0.83 0.36 2.46 2.72 0.22 2.25
Bloomberg Municipal Bond Index -1.44 -0.06 1.59 1.70 -1.32 0.02
  • Disclosure

    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.

    Because the Fund may invest more than 25% of its total assets in municipal obligations issued by entities located in the same state or the interest on which is paid solely from revenues of similar projects, changes in economic, business or political conditions relating to a particular state or types of projects may have a disproportionate impact on the Fund. A bond's market value may be affected significantly 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").

    Bloomberg Municipal Bond Index is a broad market performance benchmark for the tax-exempt bond market, the bonds included in this index must have a minimum credit rating of at least Baa.

    Time periods greater than one year are annualized.

Morningstar Ratings

Category Overall 3 Year
Municipal Bond Fund Muni National Long
(157 funds)
(157 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.


Time Period
Type Record Date Reinvest Date Payable Date Amount per Share ($) Reinvest Price ($)
Income 8/23/2023 8/24/2023 8/25/2023 0.02833172 9.65
Income 7/24/2023 7/25/2023 7/26/2023 0.03008059 9.85
Income 6/23/2023 6/26/2023 6/27/2023 0.02750260 9.82
Income 5/24/2023 5/25/2023 5/26/2023 0.02907317 9.69
Income 4/24/2023 4/25/2023 4/26/2023 0.02827959 9.85
Income 3/24/2023 3/27/2023 3/28/2023 0.02621665 9.85
Income 2/23/2023 2/24/2023 2/27/2023 0.02718610 9.71
Income 1/24/2023 1/25/2023 1/26/2023 0.02112392 9.95

Portfolio Characteristics

ALL DATA AS OF 8/31/2023
Fund Information Fund Index
*30-Day SEC Yield (%) 3.94 N/A
**Portfolio Avg. Yield to Worst (%) 4.64 3.79
Effective Duration (Years) 6.16 6.19
Effective Maturity (Years) 7.66 8.35
Average Coupon (%) 4.18 4.51
Annual Turnover Rate (%) 70.55 N/A
Number of Holdings 398 56,509
Average Portfolio Quality A AA
ALL DATA AS OF 8/31/2023
Quality Profile Fund Index
U.S. Treasury 0.0% 0.0%
U.S. Agency 0.0% 0.0%
AAA 10.5% 15.4%
AA 41.5% 55.8%
A 22.4% 23.3%
BBB 14.4% 5.5%
Below BBB 2.1% 0.0%
Not Rated 9.2% 0.0%
  • 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.