Five Baird Bond Funds Selected to Morningstar's "Thrilling 38" List

• What is Morningstar's Thrilling 38?

  Morningstar's Thrilling 38 is a screen-generated list of funds that meet simple, strict criteria focused on fees, Morningstar Medalist Ratings, long-term performance, fund company quality, risk and investor accessibility. The 2026 list includes mutual funds and exchange-traded funds.

• How many funds were included on the 2026 list?

  Morningstar narrowed a universe of thousands of fund share classes to 38 funds in 2026, including five ETFs.

• Which Baird funds were selected for Morningstar's Thrilling 38 list?
  • Baird Aggregate Bond (BAGIX)
  • Baird Core Intermediate Municipal Bond (BMNIX)
  • Baird Core Plus Bond (BCOIX)
  • Baird Short-Term Bond (BSBIX)
  • Baird Ultra Short Bond (BUBIX)
• How were the Baird Fund selected for inclusion in the Morningstar Thrilling 38 list?
  • Low Fees: Expense ratio in the cheapest quintile of their category.
  • Manager Commitment: At least $1 million invested by the fund manager.
  • Risk Control: Morningstar Risk rating lower than “High.”
  • Performance: Returns exceeding category benchmarks over the manager’s tenure (minimum five years).
  • Quality Ratings: Medalist Rating of Bronze or higher and Parent Pillar rating above Average.
  • Accessibility: Available to individual investors with a minimum investment of $50,000 or less.
  • Exclusions: No funds of funds or institutional-only share classes.

The performance data quoted represents past performance. Past performance does not guarantee future results. Investment returns and principal value will fluctuate and shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the data quoted.

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. Please read the prospectus or summary prospectus carefully before investing.

Investor class expense ratios include a 0.25% 12b-1 fee.

Investment results assume all distributions are reinvested and reflect applicable fees and expenses.

The Short-Term Bond Fund Investor Class shares were first offered on September 19, 2012. Investor Class share results prior to the date of first sale are hypothetical based on Institutional Class share results and were calculated using an estimated total annual fund operating expense of 0.55%.

The Net Expense Ratio is the Gross Expense Ratio minus any reimbursement from the advisor. The Advisor has contractually agreed to waive management fees for the Ultra Short Bond Fund in an amount equal to an annual rate of 0.15% of the average daily net assets for the Fund until April 30, 2027. 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.

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. 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. In a rising interest rate environment, the value of fixed-income securities generally decline and conversely, in a falling interest rate environment, the value of fixed income securities generally increase. High yield securities may be subject to heightened market, interest rate or credit risk and should not be purchased solely because of the stated yield. All investments carry risk, including loss of principal.

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. In a rising interest rate environment, the value of fixed-income securities generally decline and conversely, in a falling interest rate environment, the value of fixed income securities generally increase. High yield securities may be subject to heightened market, interest rate or credit risk and should not be purchased solely because of the stated yield. Municipal securities may or may not be appropriate for all investors, especially for those in lower tax brackets. All investments carry risk, including loss of principal.

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The Morningstar Medalist Rating™ 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 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.