2024

Long-term investors should consider the potential benefits of maintaining an allocation to international equities.

Tax-exempt Yields Fall in November

Treasury Yields Volatile as Election Concludes and Fed Cuts Rates as Expected

Treasury Yields Climb Sharply on Resilient Data and Reduced Expectations of Fed Easing

Municipal Yields Rise in October

Equities posted a strong quarter on the back of encouraging economic data and the anticipation of a series of interest rate cuts by the Federal Reserve.

Factors were not a major headwind or tailwind as the strategy kept pace with a solid benchmark return in the quarter.

The Strategy’s strong absolute returns were spurred by the market’s embrace of easing inflation data, and the prospect that lower interest rates will allow the U.S. economy to avoid recession.

Equity markets continued to rally throughout the third quarter, with strong positive strock returns, globally.

Fed Cuts 50 bps, Positive 2s10s Curve Slope Returns as Short Rates Fall the Most

Municipal Yields Fall through Q3 Even as Supply Soars

Municipal Curve Returns to Positive Slope

Fed Chair Powell Signals First Rate Cut in September, Helping to Normalize the Yield Curve

Municipal Yields Fall in July on Strong Demand and Still Robust Supply

Treasury Yields Decline as Inflation Cools and Fed Signals Forthcoming Cuts

While larger-cap equities reached new heights, smaller-cap stocks continued to struggle during the quarter.

The well-known S&P 500 advanced in the quarter, a stark contrast to declines in the broader small and mid-cap equity indices.

The well-known S&P 500 advanced in the quarter, a stark contrast to declines in the broader small and mid-cap equity indices.

Appreciation in global equity markets continued in the quarter and the Funds outperformed their indices.

Municipal Yields Fall in June, Rise in Q2 and Supply Booms

Treasury Yields Fall in June but End Higher for Q2, Resilient Economy Likely Delays Fed Rate Cuts

Municipal Yields Mixed in May on Supply Surge

Yields Fall as Labor Market and Inflation Cools after Q1 Upside Surprise

Equities continued their ascent to the start of the year, bolstered by hopes of easing monetary policy.

Municipal Yields Continued to Rise in April

Yields Rise on Stubborn Inflation, Firm Labor Market and Reduced Fed Rate Cut Expectations

The Baird SMID Growth portfolio produced a positive return, with mixed performance across the portfolio, but the net result trailed the sharp increase in the benchmark.

The Baird Mid Cap Growth portfolio produced a positive return with all sectors advancing, but the net result trailed the sharp increase in the Russell Mid Cap Growth Index.

Global equity markets staged another broad rally for the first quarter, with the Funds outperforming their benchmarks.

Treasury Yields Rise in Q1 as Markets Reduce Fed Rate Cut Expectations on Stronger than Expected Growth and Inflation

Municipal Yields Rise in Q1 and Demand Returns

Strong Economic Data and Reduced Fed Rate Cut Expectations Lift Treasury Yields

Strong Demand Meets Increased Supply

Equities bounced back in 2023, as easing inflation raised hopes for looser monetary policy and drove valuations higher.

Tax-exempt Yields Rise as Supply Returns to the Market

Rangebound Treasury Yields with a Steepening Bias, Inflation Cooling Alongside Resilient US Economy

Baird Advisors explores how income driven investing could be a successful new way to manage interest rate risk.

While the full-quarter results still lagged the benchmark, we were encouraged by the portfolio’s outperformance during the strong move into year-end as we saw the breadth of positive performance spread more evenly across sectors.

There were various drivers of underperformance in the quarter, as there were a multitude of factors that changed significantly, particularly in December. These factors were broadly negative for our style of management as more highly levered, lower-margin, and lower-earnings growth companies outperformed.

Equity markets rallied to close out the year as fiscal conditions loosened; the Funds performed in line with benchmarks.

2023 Review and 2024 Outlook

2023 Review and 2024 Outlook